Southern District of Texas
Press releases recorded for this federal judicial district.
Jury convicts Cuban immigrant of alien smugglingRead the Press Release
CORPUS CHRISTI, Texas – A 29-year-old legal permanent resident of Cuba residing in Houston has been convicted of transporting illegal aliens, announced Acting U.S. Attorney Jennifer B. Lowery.
A federal jury sitting in Corpus Christi deliberated for three hours before finding Ciro Yasel Castillo guilty after a two-day trial.
The jury heard that on March 15, 2020, Castillo drove an SUV into the primary inspection area at the Border Patrol (BP) checkpoint near Falfurrias. He claimed he and his three passengers were Cubans and produced a temporary driver’s license as identification. However, no one could provide proof of legal immigration status.
Authorities referred them to secondary inspection where they determined two of the passengers were minors from Guatemala illegally present in the United States. The other was an illegal alien from Cuba. During this inspection, Castillo became combative with law enforcement, resisting arrest for several minutes and inflicting minor injuries on some of the agents.
Upon further investigation, authorities determined the Cuban passenger – Lazaro Fidel Lopez - Torres, 30 - was part of a conspiracy to transport the two minor aliens. He eventually pleaded guilty for his role in that crime.
The defense attempted to convince the jury Castillo was an unofficial Uber driver. He claimed he accepted $500 via Western Union from an unknown person to pick up the two teenagers from the Valley in the middle of the night and take them to Houston. The just did not believe those claims and found him guilty.
U.S. District Judge Drew B. Tipton presided over the trial and set sentencing for July 1. At that time, Castillo faces up to 10 years of imprisonment and a possible $250,000 maximum fine. He was permitted to remain on bond pending that hearing.
BP conducted the investigation. Assistant U.S. Attorneys Amanda L. Gould and Molly Smith are prosecuting the case.
Houston man pleads guilty to smuggling 119 aliens in trailerRead the Press Release
LAREDO, Texas – A 32-year-old man has entered a guilty plea to conspiracy to transport illegal aliens, announced Acting U.S. Attorney Jennifer B. Lowery.
On Jan. 12, Brodrick Keith Rhodes arrived at the Freer Border Patrol checkpoint driving a semi-truck and refrigerated trailer. He claimed he was hauling lettuce, but authorities noticed discrepancies with his bill of lading. They also noted he appeared nervous and that the trailer was set to 30 degrees but with an internal temperature of 68.
At secondary inspection, law enforcement ultimately found 119 aliens in the trailer’s cargo area.
Rhodes claimed he worked for a business in La Porte, but the bill of lading indicated he was transporting lettuce from a Laredo produce company to a location in Sugar Land. The business indicated Rhodes had never been employed with them nor do they even transport outside the Houston area. The other two companies confirmed they had no record of the shipment.
The aliens told authorities they had been taken to a truck and told to get in the trailer. It soon departed and did not stop until it reached the checkpoint.
U.S. District Judge Marina Garcia Marmolejo will impose sentencing July 27. At that time, Rhodes faces up to 10 years in federal prison and a potential fine of up to $250,000. He was permitted to remain on bond pending that hearing.
Homeland Security Investigations conducted the investigation with the assistance of Border Patrol. Assistant U.S. Attorney Paul A. Harrison is prosecuting the case.
Chiropractor pays to settle allegations arising from electro-acupuncture device billingRead the Press Release
CORPUS CHRISTI, Texas – The chief financial officer of Rockport Physical Medicine PA has agreed to pay $273,000 to resolve allegations she falsely billed Medicare for the use of acupuncture devices, announced Acting U.S. Attorney Jennifer B. Lowery.
Stacy Hawkins, 54, is a licensed chiropractor in Rockport.
From Sep. 1, 2016, to Dec. 27, 2018, the company billed Medicare for the implantation of neurostimulator electrodes. Medicare pays thousands of dollars for this surgical procedure that requires the use of an operating room.
However, Hawkins and the clinic’s staff did not perform surgery. Instead, patients received devices used for electro-acupuncture. This involves inserting needles into patients’ ears with the neurostimulator taped behind them with an adhesive.
Medicare does not reimburse for electro-acupuncture devices as implantable neurostimulators.
To date, there have been two other settlements in this district - with a Katy anesthesiologist and a Houston pain doctor - involving similar allegations of false billing.
The Department of Health and Human Services – Office of Inspector General conducted the investigation with the U.S. Attorney’s Office. Assistant U.S. Attorney Brad Gray handled the matter.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Sex offender and previous felon gets more prison time for meth possessionRead the Press Release
LAREDO, Texas – A 43-year-old Laredo native has been ordered to federal prison for possessing with intent to distribute a large quantity of meth, announced Acting U.S. Attorney Jennifer B. Lowery.
Daniel Marco Garcia pleaded guilty Sept. 4, 2020.
Today, U.S. District Judge Marina Garcia Marmolejo ordered him to serve 168 months in prison to be immediately followed by five years of supervised release.
At the hearing, the court heard that Garcia is currently serving a 57-month sentence for an unrelated firearms case, has a prior alien smuggling conviction and is a convicted sex offender. In handing down the sentence, Judge Marmolejo noted his extensive criminal record.
“Methvis a vicious poison that continues to cause horrific and long-term damage to the quality of life in many of our communities across our Nation,” said Drug Enforcement Administration (DEA) Special Agent in Charge Daniel C. Comeaux. “In Laredo, and all across the Southwest Border, DEA and our partners continue to target drug traffickers and shut down their operations at all levels.”
On July 11, 2018, Garcia planned to transport meth within Webb County. However, authorities stopped him for a traffic violation during his trip, at which time they conducted a search of his vehicle. They soon found six bundles of meth hidden inside a black bag within the vehicle weighing approximately six kilograms.
The drugs had an estimated street value of $37,000.
He has been and will remain in custody.
The DEA conducted the Organized Crime Drug Enforcement Task Force (OCDETF) investigation dubbed Crystal Monkey with the assistance of Homeland Security Investigations, Texas Department of Public Safety, Webb County Sheriff’s Office and the Laredo Police Department. Assistant U.S. Attorney (AUSA) Jennifer Day and former AUSA Chris dos Santos prosecuted the case.
OCDETF is the largest anti-crime task force in the country. Its mission is to disrupt and dismantle the most significant drug trafficking and transnational criminal organizations that threaten the United States through prosecutor-led, intelligence-driven, multi-agency task forces that leverage the authorities and expertise of federal, state and local law enforcement.
Houston man sent to prison for hijacking interstate freight shipmentRead the Press Release
CORPUS CHRISTI, Texas – A 22-year-old Houston man has been ordered to federal prison after stealing a large load of electronics originally set for delivery to a local college, announced Acting U.S. Attorney Jennifer B. Lowery.
Maksims Klopovs pleaded guilty Jan. 4.
Today, U.S. District Judge Nelva Gonzales Ramos ordered Klopovs to serve a 30-month sentence to be immediately followed by three years of supervised release. At the hearing, the court heard Klopovs had entered the United States less than 60 days before his arrest. However, in that short time, he had already been involved in at least three similar freight hijackings in the Houston area. As part of the scheme, Klopovs created and used at least 12 fraudulent ID cards and rented multiple storage units to store the hijacked goods until they could be sold. The court determined the value of the goods involved in the four hijackings was in excess of $400,000. In handing down the sentence, Judge Ramos noted the extent and nature of the criminal conduct in this case justified the sentence.
“This individual brazenly hijacked an interstate freight shipment of computer and electronic equipment that was destined for students at a local university,” said Assistant Special Agent in Charge Brad Scott of Homeland Security Investigations (HSI). “Using the unique investigative authorities that HSI possesses we were able to disrupt his scheme and work with prosecutors to put him in federal prison.”
On June 17, 2019, authorities suspected a shipment of approximately $100,000 worth of computers and other electronics might be stolen. They were bound for Del Mar College in Corpus Christi.
After the shipment left the warehouse in Illinois, someone had changed the delivery instructions using an online system. Rather than deliver it directly to Del Mar College, the shipping company was asked to hold the load at their Corpus Christi warehouse for pickup.
Del Mar College did not request the change.
Klopovs arrived at the warehouse driving a rented U-Haul truck. He presented a fraudulent Texas driver’s license bearing his photo, but with the name Martin Smith. He also showed what was determined to be a fraudulent Del Mar College ID card with the title of Operations Manager also bearing his photograph and with the Smith name. He also had a Del Mar College business card in the name of Martin Smith.
Authorities arrested him after he claimed the shipment and began to load the electronics into the rental truck.
Klopovs has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Robert D. Thorpe Jr. is prosecuting the case.
Deputy constable arrested on drug and money laundering chargesRead the Press Release
HOUSTON – A Harris County deputy constable has been charged with conspiring with his girlfriend to possess with the intent to distribute cocaine, announced Acting U.S. Attorney Jennifer Lowery.
A federal grand jury returned a three-count indictment April 1 against Alexsander S. Reyes, 47, and his girlfriend, Priscilla Yvette Cervantes, 44, both of Huffman. They were taken into custody today and are expected to make their initial appearances before U.S. Magistrate Judge Andrew M. Edison tomorrow at 2 p.m.
The indictment alleges Reyes laundered what he believed was $350,000 in drug proceeds over a four-month-period. At the time of the offense, Reyes was a deputy constable with Harris County Precinct 1 Constable’s Office.
Reyes and his girlfriend are charged with one count of conspiracy to possess with the intent to distribute cocaine. If convicted, they face a minimum of 10 years and up to life in prison as well as a possible $10 million maximum fine. Reyes also faces up to 20 years if convicted of either of the two counts of money laundering.
The FBI conducted the investigation with Harris County Constable Precinct 1 as part of the FBI Houston Law Enforcement and Border Corruption Task Force, which includes the Houston Police Department and the Texas Department of Public Safety.
Assistant U.S. Attorneys Carolyn Ferko and Heather Winter are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Texas Syndicate cocaine trafficker returns to prison for over 10 yearsRead the Press Release
CORPUS CHRISTI, Texas – A 39-year-old Robstown gang member and convicted felon has been ordered to federal prison for conspiring to traffic 17 kilograms of cocaine, announced Acting U.S. Attorney Jennifer B. Lowery.
Rudy Reyna pleaded guilty Jan. 7.
Today, U.S. District Judge Nelva Gonzales Ramos sentenced him to serve a 121-month sentence to be immediately followed by five years of supervised release. At the hearing, the court heard additional statements that described Reyna's role during the cocaine-trafficking conspiracy and membership in the dangerous Texas Syndicate gang. In imposing the sentence, Judge Ramos noted Reyna's previous violent criminal conduct.
In July 2020, Reyna was involved in a conspiracy with others to possess with intent to distribute nearly 20 kilograms of cocaine. He helped protect or transport cocaine or currency with others. During the course of the conspiracy, authorities seized over $250,000.
Reyna was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations conducted the investigation with assistance from U.S. Marshals Service, Nueces County District Attorney’s Criminal Interdiction Unit, Texas Department of Public Safety and Corpus Christi Police Department. Assistant U.S. Attorney Reid Manning prosecuted the case.
South Texas pair admit to multiple counts of child exploitationRead the Press Release
McALLEN, Texas - A man and woman have entered guilty pleas to production of child pornography and coercion and enticement of a minor, announced Acting U.S. Attorney Jennifer B. Lowery.
Reid Etheridge, 41, McAllen, admitted he filmed himself committing the sexual abuse and assault of two minor children from on or about Jan. 1, 2020, to approximately Oct. 1, 2020. As part of her guilty plea, Alicia Cronkhite, 29, Edinburg, admitted she took photographs of one minor victim’s exposed genitals and transmitted those photographs to Etheridge at his request.
Etheridge and Cronkhite pleaded guilty to two counts and one count of production of child pornography, respectively. Etheridge also admitted to coercion and enticement of a minor, while Cronkhite entered her plea to aiding and abetting the coercion and enticement of a minor.
The investigation led authorities to an IP address in McAllen that had uploaded images and videos depicting minor children engaged in sex acts. On Oct. 2, 2020, law enforcement executed a search warrant and encountered Etheridge at the residence. He soon admitted he had filmed himself sexually assaulting one minor victim.
Further investigation revealed communication between Etheridge and Cronkhite detailing the sexual exploitation of another minor victim. Authorities searched her residence, at which time she admitted she produced multiple images of a minor victim and transmitted the images to Etheridge.
U.S. District Judge Randy Crane will impose sentencing June 15. At that time, both Etheridge and Cronkhite face a mandatory minimum of 15 years and up to life in federal prison and a possible $250,000 maximum fine.
They have been and will remain in custody pending that hearing.
Homeland Security Investigations - Rio Grande Valley Child Exploitation Investigations Task Force conducted the investigation.
Assistant U.S. Attorney Michael Mitchell is prosecuting the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
Laredoan admits to transporting over 100 illegal aliensRead the Press Release
LAREDO, Texas – A 59-year-old Laredo man has entered a guilty plea to conspiracy to transport illegal aliens, announced Acting U.S. Attorney Jennifer B. Lowery.
On Jan. 22, Barry Terence Harvin arrived at the I-35 Border Patrol checkpoint driving a semi-truck and trailer. A K-9 alerted to the presence of contraband in the cargo area of the vehicle which prompted authorities to refer him to secondary inspection.
Further investigation showed anomalies in the trailer. Law enforcement then opened it and discovered 104 aliens, including four unaccompanied minors.
Harvin admitted he had agreed to smuggle aliens to San Antonio for $1,000 per individual. He claimed a friend had offered him the job. He had parked the truck and trailer near some brush when several illegal aliens emerged from the brush and entered the trailer. His friend closed the trailer doors, and Harvin drove north towards San Antonio.
U.S. District Judge Diana Saldaña will set sentencing at a later date. At that time, Harvin faces up to 10 years in federal prison and a possible $250,000 maximum fine.
He has been and will remain in custody pending that hearing.
Homeland Security Investigations conducted the investigation with the assistance of Border Patrol. Assistant U.S. Attorney Paul A. Harrison is prosecuting the case.
Family members arrested for sex traffickingRead the Press Release
HOUSTON – Four Houston-area residents have been charged with sex trafficking and conspiracy to do so, announced Acting U.S. Attorney Jennifer B. Lowery.
Maria Botello, 54, her son - Edgar Botello, 28, her nephew - Arian Botello, 23 and her daughter - Yudy Lucatero, 31, are expected to make their initial appearances before U.S. Magistrate Judge Frances Stacy at 2 p.m. tomorrow.
The criminal complaint, filed March 30, alleges that from 2007 to 2020, the family members coerced waitresses working at the Houston bar Puerto Alegre to engage in commercial sex acts. The victims allegedly included adults and at least one minor.
The charges allege Maria Botello coordinated “dates” with clients who paid $70 for every 15 minutes with the girls. Edgar and Arian Botello were the enforcers who used weapons, threats and intimidation to keep the victims compliant, according to the complaint. The investigation also revealed Lucatero and Maria Botello discussed the rules and procedures in relation to the sex trafficking.
Authorities ultimately identified another victim who was brought to the United States specifically to work at Puerto Alegre, according to the allegations. While there, she was allegedly forced to engage in commercial sex. The charges allege she was only 17 at the time.
If convicted, the family members each face a minimum of 10 years and up to life in federal prison.
The Texas Alcoholic Beverage Commission (TABC) initiated the investigation with the assistance of the Houston Police Department (HPD) and Homeland Security Investigations (HSI).
Public cooperation is critical in the successful investigation of suspected human trafficking. Anyone victimized by suspected traffickers, or who has information about potential victims, may contact TABC’s Victims Services office at 1-713-494-5869 to make a report. Spanish speakers may contact HSI at 1-866-347-2423.
TABC, HPD and HSI are part of the Human Trafficking Rescue Alliance (HTRA) along with the FBI, Texas Attorney General’s Office, IRS-Criminal Investigation, Department of Labor (DOL), DOL – Wage and Hour Division, Department of State, Texas Department of Public Safety, Department of Homeland Security – Office of Inspector General (OIG), Social Security Administration – OIG and Sheriff’s Offices in Harris and Montgomery counties in coordination with District Attorney’s offices in Harris, Montgomery and Fort Bend Counties.
Established in 2004, the U.S. Attorney’s office in Houston formed HTRA to combine resources with federal, state and local enforcement agencies and prosecutors, as well as non-governmental service organizations to target human traffickers while providing necessary services to those that the traffickers victimized. Since its inception, HTRA has been recognized as both a national and international model in identifying and assisting victims of human trafficking and prosecuting those engaged in trafficking offenses.
Assistant U.S. Attorney Sherri Zack is prosecuting the case.
A criminal complaint is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Houston man gets 25 years for trafficking 14-year old for sexRead the Press Release
HOUSTON – A 26-year-old Houston man has been ordered to prison following his convictions of sex trafficking of a minor and conspiracy to do so, announced Acting U.S. Attorney Jennifer B. Lowery.
Trevien Thomas aka Triggah pleaded guilty Jan. 6.
Today, U.S. District Judge Nancy F. Atlas handed Thomas a 300-month sentence. At the hearing, the court heard a statement from the victim’s mother and sister as well as letters from the victim and others detailing the emotional, physical and financial impact of what Thomas did. In handing down the sentence, the court noted the aggravating factor that Thomas lured an obviously emotionally-injured girl to Houston to engage in prostitution. The court further noted the victim suffered substantially during the time Thomas held her. He was further ordered to serve 15 years on supervised release following completion of his prison term, during which time he will have to comply with requirements restricting his access to children and the internet. Thomas will also be ordered to register as a sex offender.
On March 23, 2016, Thomas picked up a 14-year-old girl in Dallas and brought her to Houston. After pistol whipping her when she tried to leave the first day, Thomas held the victim at several motels in the Houston area against her will and created commercial sex advertisements of her. He then forced the minor to engage in commercial sex acts with multiple adult men over the course of five days.
Thomas collected and kept all the proceeds.
He consistently watched her or had others do so. However, on March 28, 2016, he left her alone in a motel room, at which time she was able to escape.
Thomas has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Houston Police Department conducted the investigation with assistance from the FBI Organized Crime Task Force. The Dallas Police Department also assisted with the investigative effort.
Assistant U.S. Attorneys Sebastian Edwards and Eun Kate Suh prosecuted this case.
Palmhurst man gets lengthy prison sentence for drug and firearm convictionsRead the Press Release
McALLEN, Texas – A 58-year-old Palmhurst resident has been ordered to federal prison for being a felon in possession of a firearm and conspiring to distribute more than 500 grams of meth, announced Acting U.S. Attorney Jennifer B. Lowery.
Roberto Trevino-Mendoza pleaded guilty Oct. 7, 2019.
Today, U.S. District Judge Micaela Alvarez ordered Trevino-Mendoza to serve a 262-month sentence to be immediately followed by five years of supervised release. In handing down the sentence, the court noted instances of Trevino-Mendoza selling firearms and involvement in the sales of kilogram quantities of meth. Judge Alvarez also referenced his prior convictions of aggravated robbery and burglary.
The investigation revealed Trevino-Mendoza had agreed to sell a kilogram of meth in February 2018. An individual came to his residence and provided $4,000 to in exchange for the drugs.
He later negotiated with that same individual in the purchase a firearm. They again met at Trevino-Mendoza's residence to exchange a Taurus, Model PT-111 Millennium Pro 9mm pistol. Trevino-Mendoza received $500 in return for the weapon.
Trevino-Mendoza was previously convicted of a felony. As such, he is prohibited from possessing a firearm or ammunition per federal law.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI lead the Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF is the largest anti-crime task force in the country and its mission is to disrupt and dismantle the most significant drug trafficking and transnational criminal organizations that threaten the United States through prosecutor-led, intelligence-driven, multi-agency task forces that leverage the authorities and expertise of federal, state, and local law enforcement.
Assistant U.S. Attorney Robert Wells Jr. prosecuted the case.
Local man handed significant sentence for importing methRead the Press Release
McALLEN, Texas – A 29-year-old man from McAllen has been ordered to federal prison following his conviction for attempting to import approximately 220 grams of meth, announced Acting U.S. Attorney Jennifer B. Lowery.
Juan Torres Jr. pleaded guilty Feb. 4, 2020.
Today, U.S. District Judge Micaela Alvarez ordered Torres to serve a 130-month sentence to be immediately followed by four years of supervised of release. In handing down the sentence, the court considered the seriousness of importing such a quantity of meth into country, his role in the offense and his criminal history.
“We will do everything in our power to bring to justice those who distribute meth,” said Deputy Special Agent in Charge Timothy Tubbs of Homeland Security Investigations (HSI). “This sentence not only holds Torres accountable for his crimes but serves as a warning that HSI and its federal partners will work diligently to keep this highly addictive drug off the streets of south Texas.”
Torres arrived at the Hidalgo Port of Entry Oct. 28, 2019, and applied for admission into the United States from Mexico. Torres was referred to a secondary inspection where authorities found a package wrapped in brown tape concealed in the area of his groin. Inside was 220 grams of meth.
Torres has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the future.
HSI and Customs and Border Protection conducted the investigation. Assistant U.S. Attorneys Peter Brostowin and Frances E. Blake prosecuted the case.
Former Houston banker heading to prison for fraud schemeRead the Press Release
HOUSTON – A 41-year-old former International Bank of Commerce (IBC) employee has been ordered to federal prison after she admitted to defrauding her former employer, announced Acting U.S. Attorney Jennifer B. Lowery.
Lori Nan Dean, of Houston, pleaded guilty Aug. 26, 2019, to bank fraud.
Today, U.S. District Judge Gilmore imposed a 15-month sentence to be immediately followed by two years of supervised release. Dean was further ordered to pay a total $91,748.56 in restitution.
Dean was employed as a Marketing Manager at IBC in Houston from Jan. 2, 2016, through Aug. 2, 2017. At the time of her plea, she admitted she had defrauded the bank of $144,300. She did so by making unauthorized withdrawals through the submission of fraudulent debit general ledger tickets. Dean openly revealed she used the money she obtained for her own benefit.
She was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation. Assistant U.S. Attorney John Braddock is prosecuting the case.
Foreign national guilty for illegally smuggling Peruvian nationalRead the Press Release
CORPUS CHRISTI, Texas – A 20-year-old man has been found guilty for conspiracy to transport an illegal alien and attempting to smuggle a Peruvian national within the United States, announced Acting U.S. Attorney Jennifer B. Lowery.
U.S. District Judge David S. Morales found Kevin E. Ramos-Alvarenga guilty today on both counts following a one-day bench trial Friday, March 26. Ramos-Alvarenga is a citizen of El Salvador who illegally resided in Houston.
On March 9, 2020, Ramos-Alvarenga drove a white Toyota Camry into the primary inspection lane at the Falfurrias checkpoint in an attempt to smuggle a Peruvian national past authorities. The court heard he had concocted a story with the illegal alien to try and fool law enforcement into thinking they had forgotten his wallet in the valley.
They did not believe their story and took both into custody.
During the trial, the defense attempted to convince the court that a friend had duped Ramos-Alvarenga into transporting the Peruvian National.
Judge Morales did not believe the claims either and found Ramos-Alvarenga guilty as charged.
Ramos-Alvarenga is set for sentencing April 12. At that time, he faces up to 10 years in prison.
He has been and will remain in custody pending that hearing.
Border Patrol conducted the investigation with the assistance Homeland Security Investigations. Assistant U.S. Attorney Christopher Marin and Yifei Zheng prosecuted the case.
Local man indicted for failing to pay over $1 million in income taxRead the Press Release
HOUSTON – A man is set to appear in federal court on charges he evaded the payment of income tax and committed bankruptcy fraud, announced Acting U.S. Attorney Jennifer B. Lowery.
David Felt is expected to make his initial appearance at 2 p.m. today before U.S. Magistrate Judge Sam Sheldon.
The federal grand jury returned the eight-count indictment March 25. It alleges that beginning in 1998, Felt evaded payment of over $1.2 million in income taxes he owed for select years in the 1980s and 1990s. He also allegedly failed to pay substantial amounts of income taxes he owed from 2010 to 2013.
According to the charges, Felt also used the debtor-in-possession bank account of an entity in bankruptcy proceedings to pay personal expenses for himself, his family members and to pay non-creditor businesses. He also allegedly embezzled, spent and transferred over $353,000 of property of a bankruptcy debtor’s estate. The charges allege he made the payments and transferred the property after the court had ordered the approved Chapter 11 payment plan, in violation of federal law.
Each count of tax evasion or bankruptcy fraud carries a potential penalty of up to five years in federal prison as well as a possible $250,000 maximum fine.
IRS-Criminal Investigation and the FBI conducted the investigation. Assistant U.S. Attorneys Charles J. Escher and Quincy L. Ollison are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Human smugglers sentenced after harboring and threatening individuals with gunRead the Press Release
McALLEN, Texas – Two men from Pharr have been ordered to federal prison for their roles in a conspiracy to harbor illegal aliens, announced Acting U.S. Attorney Jennifer B. Lowery.
Baylee Bret Lugo, 21, and Florentino Trevino II, 27, pleaded guilty Nov. 2, 2020, and Oct. 20, 2020, respectively.
Today, U.S. District Judge Micaela Alvarez handed Lugo a 46-month term of imprisonment, while Trevino was ordered to serve 33 months in prison. Each sentence will be immediately followed by three years of supervised release. At the hearing, the court found Lugo and Trevino responsible for involuntarily detaining, threatening and brandishing a firearm at four undocumented aliens at a hotel in Pharr during the course of the conspiracy on July 9, 2020.
Jesus Ricardo Garcia-Suarez, 48, a Mexican citizen who illegally resided in Mission, had also admitted guilt and was previously sentenced to a term of 18 months for his role in the offense. Not a U.S. citizen, he is expected to face removal proceedings following his incarceration.
From June 26 to July 9, 2020, Garcia-Suarez harbored four undocumented aliens at a residence in Mission. He then transported them to Trevino who was waiting at a local grocery store. Trevino subsequently drove the undocumented aliens to the Pharr hotel he had rented where he and Lugo held them against their will. During that time, Lugo brandished a firearm at them, confiscated their cell phones and money and demanded additional payment for their release.
One managed to escape and flagged down a bystander for help. Law enforcement responded to the hotel where they found Lugo and the others, as well as firearm hidden in the room. Authorities subsequently arrested Trevino as he was attempting to drive away from the hotel.
Lugo and Trevino have been and will remain in the custody pending a transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations, Border Patrol and Pharr Police Department conducted the investigation. Assistant U.S. Attorney Matthew Redavid prosecuted the case.
A dozen Texans arrested in Laredo round-upRead the Press Release
LAREDO, Texas – A coordinated law enforcement effort has resulted in the arrest of multiple individuals for conspiring to distribute narcotics and firearm violations, announced Acting U.S. Attorney Jennifer B. Lowery.
On March 24, a federal grand jury sitting in Corpus Christi returned three separate sealed indictments charging Martin Perez Jr., 38, Mateo Roberto Alaniz, 46, Joaquin Maldonado, 38, Julio Nazario Torres, 46, Armando Mendoza Jr., 38, Federico Maldonado, 32, Luis Alberto Agredano, 42, Roberto Gonzalez, 38, Alfredo Gonzalez, 35, Jesus Austin Farfan, 31, Antonio Mercado, 35, and Agustin Fuentes, 36.
All are expected to make their initial appearances before a U.S. magistrate judge in Laredo Monday, March 29.
Their indictments allege varying charges relating to their involvement in trafficking narcotics in Laredo. With the exception of Fuentes and Mercado, the remaining 10 defendants are charged in one indictment with possession with the intent to deliver crack cocaine as well as maintaining a premises for drug trafficking within 1000 feet of a school, playground or public housing project. Perez and Farfan are also charged in the same indictment with possessing a firearm in relation to a drug trafficking crime as well as being a felon in possession of a firearm. Fuentes is further charged solely in a separate indictment for possession with intent to deliver heroin. The last indictment alleges Mercado also possessed heroin with the intent to deliver it.
If convicted, all but Fuentes and Mercado face up to life in prison. Then remaining charges carry varying term of imprisonment of up to 40 years.
The Drug Enforcement Administration, Laredo Police Department and FBI conducted the Organized Crime Drug Enforcement Task Force (OCDETF) operation dubbed Operation Sin Piso with the assistance of the Webb County Sheriff’s Office, Texas Department of Public Safety, Homeland Security Investigations and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. OCDETF identifies, disrupts and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage.
Assistant U.S. Attorney Brittany L. Jensen is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Ukrainian traffickers sentenced for counterfeit cancer and hepatitis drugsRead the Press Release
HOUSTON - Two citizens of Ukraine have been sentenced after admitting they conspired to smuggle and distribute counterfeit cancer and hepatitis drugs into the United States.
Maksym Nienadov, 36, is the owner of the Ukrainian-based company Healthy Nation. He and his co-conspirator and employee – Volodymyr Nikolaienko, 34 – pleaded guilty to conspiracy, trafficking in counterfeit drugs and smuggling goods into the United States July 17, 2020. Nienadov also admitted to introducing misbranded medicine into the United States.
Today, Nienadov and Nikolaienko were sentenced to respective terms of 71 and 33 months in federal prison. They are both expected to face removal proceedings following the prison terms.
“Those that traffic counterfeit drugs pose harm to our country’s most vulnerable citizens and will face consequences,” said Acting U.S. Attorney Jennifer B. Lowery. “Defenseless people need their medications for life-threatening illnesses. Schemes like these put patients at risk of not receiving the actual drugs required for treatment. This prosecution demonstrates the tremendous work by all our partners and our collaborative commitment to protecting our community and combatting counterfeit drug trafficking into the United States.”
“The defendants sought to profit off the illnesses of others, selling false hope – including fake drugs with no active ingredient – and risking the health of vulnerable patients,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “This prosecution makes clear that we will hold accountable those who disregard the risks to patients by smuggling counterfeit drugs into the United States.”
In June 2018, undercover U.S. authorities began communicating with Nienadov about the illegal sale of Keytruda. This prompted a months-long exchange which also involved Nikolaienko and resulted in the unlawful sale of counterfeit or unapproved Keytruda, Abraxane and Epclusa. Neither Nienadov nor Nikolaienko are medical doctors, pharmacists or licensed pharmaceutical wholesalers in the United States and did not have authorization to sell the drugs.
Merck & Co. manufactures Keytruda, a medicine to treat cancer, while Gilead Sciences Inc. manufactures Epclusa, a prescription drug for the treatment of hepatitis-C. Celgene Corporation is a wholly-owned subsidiary of Bristol Myers Squibb and manufactures the oncology product Abraxane. In their legitimate form, the Food and Drug Administration (FDA) approved all three drugs for distribution in the United States.
During the undercover investigation, law enforcement received Nienadov’s banking information, which included the name “Maksim Nenadov” and his Ukrainian bank account number. Authorities transferred $2,400 to his bank account for the purchase of the purported Keytruda. Soon after, they received a shipment from “Maxim Nenadov” which contained two boxes represented to contain Keytruda. However, the items were sent to Merck for testing and determined to be counterfeit.
Authorities then negotiated the purchase of more Keytruda as well as an another medication, Abraxane. The online messaging and email conversations resulted in a $3,400 undercover payment to Nienadov for the purchase of both drugs. On July 30, 2018, “Maxim Nenadov” sent two boxes of 50 mg purported Keytruda and two boxes of supposed Abraxane 5 mg/ml to undercover agents. Merck and Celgene performed analyses and confirmed the packaging and medication to be counterfeit.
In late 2018, law enforcement also negotiated the undercover purchase of two boxes of purported Epclusa tablets from Nienadov and Nikolaienko for $6,000. Gilead identified the packaging and contents as counterfeit.
“Selling illegal prescription drugs in the U.S. marketplace puts consumers’ health at risk, but it is especially reprehensible when the drugs are intended for use with especially vulnerable populations, such as cancer patients,” said Special Agent in Charge Charles L. Grinstead of the Food and Drug Administration, Office of Criminal Investigations (FDA-OCI) - Kansas City Field Office. “We will continue to investigate and bring to justice those who sell illegal prescription drugs, knowing that they can jeopardize patients’ health.”
“We work tirelessly, alongside our federal partners and private sector stakeholders, to prevent counterfeit pharmaceuticals from infiltrating the American marketplace,” said Special Agent in Charge Mark Dawson of Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Houston. “Today’s sentencing is another example of our relentless efforts to ensure consumers are receiving the life-saving pharmaceuticals that they need to treat their afflictions.”
Nienadov and Nikolaienko were taken into custody April 18, 2019, after they arrived in the United States from Ukraine to discuss future unlawful shipments of pharmaceuticals. They have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
HSI and FD-OCI conducted the investigation.
Assistant U.S. Attorney Sebastian Edwards and Senior Trial Attorney Jeffrey Pearlman of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) prosecuted the case. Former CCIPS Senior Trial Attorney Kebharu Smith assisted in the prosecution. In addition, the Criminal Division’s Office of International Affairs provided substantial assistance.
Ukrainian Traffickers Sentenced for Trafficking in Counterfeit Cancer and Hepatitis DrugsRead the Press Release
Two citizens of Ukraine have been sentenced for trafficking in and smuggling into the United States counterfeit cancer and hepatitis drugs.
Maksym Nienadov, 36, was the owner of the Ukrainian-based company Healthy Nation. He and his co-conspirator and employee – Volodymyr Nikolaienko, 34 – pleaded guilty in July 2020 to both trafficking in and smuggling into the United States counterfeit drugs and conspiracy to do so. Nienadov also pleaded guilty to introducing misbranded drugs into the United States.
Today, Nienadov and Nikolaienko were sentenced to respective terms of 71 and 33 months in federal prison. Each defendant is expected to face removal proceedings following his term in prison.
“The defendants sought to profit off the illnesses of others, selling false hope – including fake drugs with no active ingredient – and risking the health of vulnerable patients,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “This prosecution makes clear that we will hold accountable those who disregard the risks to patients by smuggling counterfeit drugs into the United States.”
“Those that traffic counterfeit drugs pose harm to our country’s most vulnerable citizens and will face consequences,” said Acting U.S. Attorney Jennifer B. Lowery of the Southern District of Texas. “Defenseless people need their medications for life-threatening illnesses. Schemes like these put patients at risk of not receiving the actual drugs required for treatment. This prosecution demonstrates the tremendous work by all our partners and our collaborative commitment to protecting our community and combatting counterfeit drug trafficking into the United States.”
“Selling illegal prescription drugs in the U.S. marketplace puts consumers’ health at risk, but it is especially reprehensible when the drugs are intended for use with especially vulnerable populations, such as cancer patients,” said Special Agent in Charge Charles L. Grinstead of the Food and Drug Administration, Office of Criminal Investigations (FDA-OCI), Kansas City Field Office. “We will continue to investigate and bring to justice those who sell illegal prescription drugs, knowing that they can jeopardize patients’ health.”
“We work tirelessly, alongside our federal partners and private sector stakeholders, to prevent counterfeit pharmaceuticals from infiltrating the American marketplace,” said Special Agent in Charge Mark Dawson of Homeland Security Investigations (HSI), Houston. “Today’s sentencing is another example of our relentless efforts to ensure consumers are receiving the life-saving pharmaceuticals that they need to treat their afflictions.”
Nienadov and Nikolaienko were arrested in April 2019 after they arrived in the United States from Ukraine to discuss sales of future unlawful shipments of drugs. They have been and will remain in custody pending transfer to a Federal Bureau of Prisons facility to be determined.
HSI and FDA-OCI conducted the investigation.
Senior Trial Attorney Jeff Pearlman of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorney Sebastian Edwards of the Southern District of Texas prosecuted the case. Former CCIPS Senior Trial Attorney Kebharu Smith assisted in the prosecution.
The Justice Department’s Office of International Affairs and the Office of the Prosecutor General of Ukraine provided substantial assistance.
Over 1,000 videos and images of child pornography lands South Texas man in prisonRead the Press Release
BROWNSVILLE, Texas – A 47-year-old Brownsville resident has been handed a lengthy federal prison sentence for possession of child pornography, announced Acting U.S. Attorney Jennifer B. Lowery.
Chance Wallace pleaded guilty Sep. 26, 2019.
Today, U.S. District Judge Fernando Rodriguez Jr. ordered him to serve 180 months in prison. The sentence will be immediately followed by eight years of supervised release during which he will have to comply with numerous requirements designed to restrict his access to children and the internet. He has also been ordered to register as a sex offender. At the hearing, the court considered statements of various victims describing how Wallace’s actions caused them continued harm. In handing down the prison term, Judge Rodriguez noted the seriousness of the offense and the need to protect the public from Wallace’s conduct.
In Oct. 2015, authorities launched an investigation targeting child pornography sharing on the internet. That led them to Wallace. The following month, they conducted a search at the residence and seized his computer and an external hard drive. Forensic analysis on the computer later revealed approximately 525 images and 497 videos of child pornography.
Wallace will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations - Rio Grande Valley Child Exploitation Task Force conducted the investigation.
Assistant U.S. Attorneys Ana C. Cano, Jason Corley and Joe Esquivel prosecuted the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
Man ordered to prison for transporting meth welded inside tiresRead the Press Release
BROWNSVILLE, Texas – A 68-year-old Mexican man has been sentenced after trying to cross the border with over 60 kilograms of meth, announced Acting U.S. Attorney Jennifer B. Lowery.
Benjamin Garcia-Alcantar, Morelia, Michoacan, Mexico, pleaded guilty Oct. 22, 2020, to possession with intent to distribute meth.
Today, U.S. District Judge Fernando Rodriguez Jr. handed him a 120-month sentence to be immediately followed by four years of supervised release. In handing down the sentence, the court noted Garcia-Alcantar’s age and lack of criminal history.
On May 16, 2020, Garcia-Alcantar had attempted to make entry into the United States via the Veteran’s International Bridge driving a 2007 GMC Sierra. The truck had a business decal displaying an American flag with both a Matamoros, Mexico, and Mission address. Garcia-Alantar claimed he had a business called “Good Been-Second-hand articles” and was bringing in an 8-foot medieval knight armor statue for resale. He added that he had been selling the medieval knights in Mission.
Authorities recalled a similar knight on a bed of a truck that had crossed on a previous occasion and sent him for further inspection. At secondary, law enforcement found 24 bundles enclosed in metal containers. They had been welded into the interior of the vehicle’s tires.
Authorities had to call a hazardous materials team to extract the narcotics.
The bundles held 62.44 kilograms of meth with an estimated street value of more than $1.8 million in Texas.
Garcia-Alcantar will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration Customs Enforcement conducted the investigation with the assistance of Customs Border Protection. Assistant U.S. Attorney Elena Llanos-Salinas prosecuted the case.
Laredo man sentenced for attempting to export 20,000 rounds of ammoRead the Press Release
LAREDO, Texas – A 48-year-old Laredoan has been ordered to federal prison for attempting to illegally export firearms and ammunition to Mexico, announced Acting U.S. Attorney Jennifer B. Lowery.
Juan Antonio Cepeda pleaded guilty Jan. 4.
Today, U.S. District Judge Diana Saldana ordered Cepeda to serve a 41-month sentence to be immediately followed by three years of supervised release. In handing down the sentence, Judge Saldana noted Cepeda had a lengthy criminal history and a long struggle with drug addiction.
On Sept. 14, 2020, Cepeda was traveling on Interstate Highway 35, when authorities conducted a traffic stop on his vehicle. Inside, they found 14 firearms and over 20,000 rounds of ammunition.
Cepeda admitted to knowingly attempting to export ammunition to Mexico for the promise of $2,000 payment.
Cepeda has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations and the Bureau of Alcohol, Tobacco, Firearms and Explosives jointly conducted the investigation with the Texas Department of Public Safety and Laredo Police Department. Assistant U.S. Attorney Francisco J. Rodriguez prosecuted the case.
Former Mexican governor and presidential candidate convicted of money launderingRead the Press Release
HOUSTON - The former governor of Tamaulipas, Mexico, has admitted he accepted over $3.5 million in illegal bribe money and used it to fraudulently purchase property in the United States, announced Acting U.S. Attorney Jennifer B. Lowery.
Tomas Yarrington Ruvalcaba, 64, was also a former candidate for president of Mexico. Today, he admitted to a charge of conspiracy to commit money laundering in a pay to play type of scheme.
As part of the plea, Yarrington admitted he accepted bribes from individuals and private companies in Mexico to do business with the state of Tamaulipas while he served as governor. Yarrington was in that position from 1999 to 2005. He was also an Institutional Revolutionary Party candidate for president of Mexico in 2005.
Yarrington used the bribery money he received while governor to purchase properties in the United States. He had prestanombres - nominee buyers - purchase property in the United States to hide Yarrington’s ownership of the properties and the illegal bribery money used to purchase them.
Yarrington admitted one of the illegally purchased properties was a condominium in Port Isabel. He also acknowledged he knew it was against the law in Mexico to take the bribes and to hide the over $3.5 million in illegal bribe money in the United States by buying real estate, cars and other personal items.
U.S. District Judge Hilda G. Tagle accepted the plea and will set sentencing at a later date. At that time, Yarrington faces up to 20 years in federal prison. He has also agreed to forfeit the Port Isabel condominium.
In April 2017, authorities captured Yarrington in Italy while traveling under an assumed name and false passport and other identification documents. He was taken into custody on a provisional arrest warrant based on the indictment returned in May 2013. Although Yarrington contested extradition, Italian authorities eventually authorized his extradition to the United States. He arrived in April 2018 where he has remained in custody.
Homeland Security Investigations (HSI) led the Organized Crime Drug Enforcement Task Force (OCDETF) operation dubbed Operation Green Tide with the assistance of IRS – Criminal Investigation, Drug Enforcement Administration, FBI and Texas Attorney General’s Office. It included agents and officers in Brownsville, San Antonio, Houston, Corpus Christi and New York. The Justice Department’s Office of International Affairs handled the extradition in this matter. The U.S. government also acknowledges with gratitude the significant assistance received from the government of Mexico in the course of this investigation. Additionally, the United States acknowledges the assistance of the U.S. Marshals Service, HSI-Rome, HSI-Mexico City, the Italian Ministry of the Interior (particularly Interpol Rome and the Central Operations Service of the Italian National Police) and the Italian Ministry of Justice in Yarrington’s extradition.
OCDETF identifies, disrupts and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage.
Assistant U.S. Attorneys Jody Young, Jon Muschenheim and Karen Betancourt are prosecuting the case.
Discord user pleads guilty to distributing child pornography involving infants and toddlersRead the Press Release
CORPUS CHRISTI, Texas – A 24-year-old Corpus Christi man has admitting to sending videos depicting the sexual exploitation of children, announced Acting U.S. Attorney Jennifer B. Lowery.
In August 2020, authorities had linked Krystian Dari Ayala to a Discord account found to be sending child pornography. Discord is an application where users can chat, send pictures and videos to others and allows them to join chat rooms for specific topics.
The investigation resulted in a search of Ayala’s Discord account. It confirmed he had sent videos of child pornography to other Discord users. The investigation led authorities to Corpus Christi residence where they conducted a search and seized numerous electronic devices, some of which contained child pornography.
Ayala admitted he had utilized his cellphone to access the Discord application to distribute child pornography, some of which depicted the sexual abuse of infants and toddlers.
Sentencing has been set for June 16 before U.S. District Judge Nelva Gonzales Ramos. At that time, Ayala faces a mandatory minimum of five and up to 20 years in federal prison as well as a possible $250,000 maximum fine.
Ayala has been and will remain in custody pending that hearing.
The Washington State Police, Corpus Christi Police Department Internet Crimes Against Children Task Force and Homeland Security Investigations conducted the investigation.
Assistant U.S. Attorney Sara Popejoy is prosecuting the case which was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
Crack ring indicted for selling drugs in Galveston CountyRead the Press Release
GALVESTON, Texas – Seven members of a local drug distribution ring will now face federal charges for the preparation and sale of cocaine base to residents of La Marque and Texas City, announced Acting U.S. Attorney Jennifer B. Lowery.
Authorities arrested Smith Henry Jones, 40, and wife Lekisha Marie Jones, 42, both of Houston; and Harold Damon Brown, 43, and Dejon Nicole Thomas, 38; both of La Marque, today. They are expected to make their initial appearances before U.S. Magistrate Judge Sam Sheldon in Houston as early as 2 p.m. today.
Latoya Vonea Worthy, 30, La Marque, is also charged. Shane Alan Flores, 39, League City, was previously in custody and appeared via Zoom today. He is set for a detention hearing before U.S. Magistrate Judge Andrew Edison March 29 at 2 p.m. Ronnie LaShawn Allen, 41, Hitchcock; was also in custody and will be transferred to face the charges in this indictment in the near future.
A federal grand jury returned the seven-count indictment under seal March 16, which was unsealed today. It alleges all seven individuals conspired to possess with intent to distribute cocaine powder and crack between Feb. 16, 2017, and Feb. 26, 2019. Five of the counts allege Allen and Thomas possessed with intent to distribute either cocaine or crack. The Joneses are also charged with conspiracy to commit money laundering.
All face a minimum of 10 years and up to life in federal prison as well as a possible $10 million maximum fine if convicted in the conspiracy. Those charged with the substantive drug counts could also receive up to 20 years and another $1 million maximum fine. The money laundering conspiracy carries a potential punishment of 20 years and a fine not to exceed $500,000 or twice the value of the property involved in the transaction.
The FBI conducted the investigation as part of the Coastal Safe Streets Task Force with the assistance of the LaMarque Police Department. Assistant U.S. Attorney Kenneth Cusick is prosecuting this case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Valley felon headed back to prison for alien smuggling and firearmsRead the Press Release
McALLEN, Texas – A 46-year-old Edinburg resident has been ordered to federal prison for conspiring to harbor illegal aliens and possessing a firearm as a convicted felon, announced Acting U.S. Attorney Jennifer B. Lowery.
Noe Garza pleaded guilty Nov. 2, 2020.
Today, U.S. District Judge Micaela Alvarez ordered Garza to serve a total of 63 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the court heard additional information related to his criminal record to include prior convictions for aggravated assault and aggravated robbery. In handing down the sentence, Judge Alvarez noted Garza had been breaking the law since he was 17. She added that she was particularly troubled Garza committed these crimes while having a pending alien transportation case from 2016 and failed to appear for sentencing.
On Feb. 28, 2020, law enforcement conducted a traffic stop on Garza, but he fled the scene. Authorities soon apprehended him, at which time he admitted to being the caretaker of a stash house in Edinburg and helping coordinate transportation of illegal aliens further north. A search of the residence revealed five illegal aliens and two firearms. Law enforcement also found an additional firearm in the area of the traffic stop. Garza took ownership of all three firearms.
As a previously convicted felon, federal law prohibits him of possessing firearms or ammunition.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the future.
Immigration and Customs Enforcement’s Homeland Security Investigations and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation with the assistance of the Edinburg Police Department. Assistant U.S. Attorney M. Alexis Garcia prosecuted the case.
Multiple felony charges land Coastal Bend meth trafficker in prisonRead the Press Release
CORPUS CHRISTI, Texas – A 38-year-old Coastal Bend woman has been ordered to federal prison for a conspiracy to distribute 243 grams of meth, announced Acting U.S. Attorney Jennifer B. Lowery.
Jennifer Saldana pleaded guilty June 17, 2020.
Today, U.S. District Judge Nelva Gonzales Ramos sentenced Saldana to serve an 84-month sentence to be immediately followed by five years of supervised release.
On May 30, 2019, Saldana and Willie James Sorrell III traveled on a Greyhound bus from McAllen to the Corpus Christi area. At the Border Patrol checkpoint near Falfurrias, authorities discovered a backpack near Sorrell’s feet that contained nearly 250 grams of meth and a firearm.
The investigation revealed Sorrell and Saldana had traveled from Corpus Christi to the Rio Grande Valley to obtain distribution amounts of meth.
Sorrell, 48, Corpus Christi, was previously sentenced to more than 10 years in federal prison.
Saldana has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigation along with Customs and Border Protection and Texas Department of Public Safety. Assistant U.S. Attorney Reid Manning prosecuted the case.
Laredo man charged with kickback/accounting fraud schemeRead the Press Release
LAREDO, Texas – A 46-year-old Laredo resident has been charged for stealing money from an automobile financing company through a kickback and accounting fraud scheme, announced Acting U.S. Attorney Jennifer B. Lowery.
Authorities arrested Roberto Montiel today. He is expected to make his initial appearance before a U.S. magistrate judge at 1:30 p.m. tomorrow in Laredo.
A federal grand jury returned the 12-count indictment March 18 which was unsealed today. It alleges Montiel misused his position as general manager of the company to sell vehicles that the company had repossessed. He allegedly sold them at prices below their market value in exchange for receiving a kickback from the buyer.
According to the indictment, Montiel also entered false information into the company’s accounting system and manipulated accounting records to inflate the company’s profitability and assets. This allegedly enabled him to hide the losses his scheme caused. He also allegedly received bonuses and commissions he was only entitled to receive if the company was profitable.
If convicted, Montiel faces up to 20 years in prison and a possible $250,000 maximum fine on each count of conviction.
The FBI conducted the investigation. Assistant U.S. Attorney Justin R. Martin is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Former state trooper charged with sexually assaulting two women while on dutyRead the Press Release
HOUSTON – Authorities are seeking potential victims following the arrest of a 32-year-old Spring man on federal civil rights violations, announced Acting U.S. Attorney Jennifer B. Lowery.
Lee Ray Boykin Jr. is a former State Trooper with the Texas Department of Public Safety. The criminal complaint, filed today, alleges he deprived two separate victims of their right to bodily integrity. He is also charged with carrying and using a firearm during a crime of violence as well as destruction, alteration or falsification of records in a federal investigation.
Boykin is expected to make his initial appearance before U.S. Magistrate Judge Sam S. Sheldon at 2 p.m. today.
The complaint alleges that on Aug. 7, 2020, Boykin conducted a traffic stop near an Express Inn at 9025 North Freeway in Houston. After issuing the driver a written warning, Boykin allegedly ordered the passenger to get into his patrol car. The charges allege he then drove her to a back parking lot at 10700 North Freeway and parked near a dumpster. There, he threatened to take the victim to jail for an out-of-state warrant if she did not perform oral sex on him, according to the complaint. She allegedly feared for her life and safety and obeyed Boykin’s commands. Following the sex act, Boykin placed his hand on his weapon and ordered her to run, according to the charges.
The investigation revealed there had been a second victim, according to the complaint. On Aug. 3, 2020, Boykin had allegedly pulled up behind a vehicle parked at a Texaco gas station at 9404 North Freeway in Houston. He told the passenger she had outstanding warrants and said he was taking her to a substation, according to the charges. He then allegedly ordered her into his vehicle and drove her to the same back parking lot at 10700 North Freeway. The complaint alleges Boykin told her he knew what she did for a living and wanted some of it - meaning sex. Fearing Boykin, she complied with his demands and performed oral sex on him, according to the charges.
If convicted, he faces up to life in prison.
Authorities believe there may be other victims. Anyone with information about potential additional victims is asked to contact the FBI at 713-693-5000.
The Houston Police Department, Texas Rangers and FBI are conducting the investigation. Assistant U.S. Attorneys Sebastian Edwards and Eun Kate Suh are prosecuting the case.
A criminal complaint is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Former drug clinic employee sentenced for trafficking meth while on bondRead the Press Release
CORPUS CHRISTI, Texas – A 44-year-old resident of Corpus Christi has been ordered to prison after admitting her role in a federal drug scheme, announced Acting U.S. Attorney Jennifer B. Lowery.
Katrina Kelly pleaded guilty Nov. 19, 2020.
Today, U.S. District Judge David S. Morales ordered her to serve a 96-month sentence to be immediately followed by three years of supervised release. At the hearing, the court heard additional information describing Kelly's drug trafficking after previously earning a master's degree in social work and serving as a rehabilitation program specialist for a methadone clinic with Texas Health and Human Services. In handing down the sentence, Judge Morales noted Kelly's continued criminal conduct even while on bond in two federal cases.
In April 2020, Kelly was involved in a conspiracy with others to possess with intent to distribute kilograms of meth. She negotiated terms of the sale or distributed the meth from a residence in Corpus Christi. Laboratory analysis later positively confirmed the substance linked to her was meth.
Previously released on bond, Kelly was later taken into custody after violating the terms of her bond conditions. She will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigation with assistance from Texas Department of Public Safety and police departments in Kingsville and Corpus Christi. Assistant U.S. Attorney Reid Manning prosecuted the case.
Five men indicted on multiple charges in mail theft schemeRead the Press Release
HOUSTON – A federal grand jury sitting in Houston has returned a superseding indictment against five Honduran nationals in a bank fraud conspiracy, announced Acting U.S. Attorney Jennifer B. Lowery.
Angel Javier Contreras Melara, 44, Bayron Rolando Guzman Yanez, 28, Elvin Lioile Rivas, 22, Hoffman Ramon Osorio Gallardo, 29, and Jonathan Arreaga Camey, 35, are charged with conspiracy to commit bank fraud, bank fraud, possession of stolen mail and aggravated identity theft. All but Camey were illegally residing in Houston. Camey is a legal permanent resident of Houston but could lose his status if convicted.
Melara and Rivas are currently in custody. The remaining three were permitted release pending further criminal proceedings. All are expected to appear for their arraignments on the charges in the superseding indictment before a U.S. magistrate judge in the near future.
The 17-count indictment alleges multiple mail thefts throughout the Greater Houston area beginning in mid-2019 and continuing through the end of 2020. The conspirators would allegedly look for checks within the stolen mail and alter them to deposit into accounts the conspirators controlled.
If convicted, the defendants face up to 30 years in prison for the conspiracy and bank fraud counts and five years if convicted of the mail theft. They also face an additional and mandatory two years for the aggravated identity theft counts which must be served consecutively to any other prison term imposed.
The U.S. Postal Inspection Service conducted the investigation with the assistance of police departments in Meadows Place, Houston and Sugar Land. Assistant U.S. Attorney Christine Lu is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Ex-police officer sent to prison after drug stopRead the Press Release
HOUSTON – A former officer with the Houston Police Department (HPD) has been ordered to prison after admitting her guilt in a Houston-area cocaine conspiracy, announced Acting U.S. Attorney Jennifer B. Lowery.
Julissa Diaz, 41, Houston, pleaded guilty Jan. 16, 2020, to conspiracy to possess with the intent to distribute cocaine. At that time, she admitted she stopped a vehicle containing cocaine and arrested the occupant to allow others to steal the drugs.
Today, U.S. District Judge Gray Miller ordered her to serve an 87-month sentence to be immediately followed by three years of supervised release.
Diaz is no longer employed with HPD.
“Julissa Diaz used her position as a sworn police officer to commit these crimes. When she participated in the drug trafficking conspiracy, she violated a sacred oath, as well as the trust our city placed in her,” stated Drug Enforcement Administration (DEA) Special Agent in Charge Daniel C. Comeaux. “Each day, the overwhelming majority of law enforcement officers place their lives on the line to protect our communities, while upholding the trust of a nation, and stand firmly against those few who would tarnish our badge.”
In early November 2018, Carlos Campos identified a potential drug courier and provided that information to Jesse Holt, a tow truck driver. Holt passed the information Ricardo Diaz – the then husband of Julissa Diaz - who gave it to his wife and asked her to conduct the illegal stop.
On Nov. 8, 2018, Julissa Diaz stopped and arrested the occupant who was actually an undercover officer posing as the drug courier. The vehicle contained eight kilograms of cocaine. Julissa Diaz deliberately left the drugs in the car so the co-conspirators could then steal it. Holt was stationed nearby and towed the car away.
Ricardo Diaz - her now ex-husband, 46, Campos, 35 and Holt, 46, all of Houston, also pleaded guilty. Campos later received an 87-month sentence, while Ricardo Diaz was sentenced to 108 months. Holt was ordered to serve a 42-month term of imprisonment. All of the sentences will be immediately followed by five years of supervised release.
Julissa Diaz was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The DEA and HPD conducted the investigation. Assistant U.S. Attorneys Craig Feazel and John Jocher prosecuted the case.
Man indicted for smuggling meth in truck tiresRead the Press Release
LAREDO, Texas – A 23-year-old Houston resident has been indicted for conspiracy and importation of 50 grams or more of meth, announced Acting U.S. Attorney Jennifer B. Lowery.
The federal grand jury in Laredo returned the two-count indictment against Mike Mendoza today. He is expected to appear for his arraignment before U.S. Magistrate Judge Diana Song Quiroga in the near future.
The criminal complaint originally filed in the case alleges Mendoza and others conspired to import more than one kilogram of meth in the tires of a Ford F-150.
On Feb. 25, Mendoza allegedly arrived at the Lincoln Juarez Bridge in Laredo driving the truck. Law enforcement detected anomalies in the tires and soon found 24 bundles of meth, according to the charges.
They allegedly had a total combined weight of 60.04 kilograms with an estimated street value of $360,000.
If convicted, Mendoza faces up to life in prison and a possible $10 million maximum fine.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Adam E. Harper is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Former children’s autism service provider pays over $2.7 million to resolve health care fraud allegationsRead the Press Release
HOUSTON – The former owner and sole shareholder of The Shape of Behavior (TSOB), a Texas-based provider of therapy services for children with autism, has agreed to pay to resolve allegations that the company submitted improper claims to the TRICARE program, announced Acting U.S. Attorney Jennifer B. Lowery.
Dr. Domonique Randall, 45, Spring, has now paid a total of $2,729,083.23.
TRICARE is an entitlement program for uniformed service members, retirees and their families around the world.
Authorities initiated an investigation after TRICARE’s managed care support contractor - Humana Military Program Integrity – uncovered alleged improper claims. These were for applied behavior analysis therapy to beneficiaries with autism spectrum disorder.
Today’s settlement resolves allegations that nine separate TSOB locations submitted claims to TRICARE that misrepresented the identity of the actual rendering providers, that medical records could not substantiate or when individual providers billed excessive hours on individual dates of service.
“The welfare of our service members and the extended Department of Defense (DoD) family is of vital importance to the DoD Inspector General,” said Acting Special Agent in Charge Gregory P. Shilling of the Defense Criminal Investigative Service’s (DCIS) Southwest Field Office. “This resolution is a testament to the collaboration between the DCIS and our partners in ensuring TRICARE beneficiaries receive the highest level of care from health care providers while also ensuring those providers are being stewards of valuable taxpayer resources.”
The Defense Health Agency - Office of Program Integrity, DCIS and Humana Military Program Integrity all assisted in the joint investigation resulting in the settlement announced today. Assistant U.S. Attorney Kenneth Shaitelman handled the matter on behalf of the United States.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Former Venezuelan Official Pleads Guilty in Connection with International Bribery and Money Laundering SchemeRead the Press Release
A dual U.S.-Venezuelan citizen and former official at Citgo Petroleum Corporation, a Houston-based subsidiary of Venezuela’s state-owned and state-controlled energy company Petróleos de Venezuela S.A. (PDVSA), pleaded guilty Monday in connection with his role in laundering millions of dollars in bribes and corruptly providing business advantages to multiple individuals who obtained contracts with Citgo and PDVSA.
According to court documents, between approximately 2013 and 2019, Jose Luis De Jongh Atencio (De Jongh), 48, a former procurement officer and manager in Citgo’s Special Projects Group, accepted more than $7 million in bribe payments from businessmen including Jose Manuel Gonzalez Testino (Gonzalez), a dual U.S.-Venezuelan citizen, and Tulio Anibal Farias Perez (Farias), a Venezuelan national and Houston resident, and others in exchange for assisting the businessmen and related companies in procuring contracts with Citgo, and providing them with other business advantages.
De Jongh admitted to directing bribe payments from Gonzalez, Farias, and others into bank accounts in the names of shell companies that he controlled in Panama and Switzerland. In some instances, he also directed the creation of fake invoices to justify the payments. De Jongh laundered the bribe proceeds through U.S. and international bank accounts and used the funds to purchase real property located in the Houston area. In addition to monetary payments, De Jongh also received bribes in the form of gifts and other things of value from Gonzalez, Farias, and others including tickets to a 2014 World Series Game, Super Bowl XLIX in 2015, and a U2 concert. Gonzalez and Farias also entered guilty pleas in connection with the case.
“Jose Luis De Jongh Atencio accepted millions of dollars in bribe payments — placing law-abiding individuals and companies at a competitive disadvantage — and then laundered those bribe payments into the United States to fund his lavish lifestyle,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “This guilty plea demonstrates the commitment of the department and our law enforcement partners to hold accountable individuals who engage in corruption and use our financial system to promote and launder the proceeds of their crimes.”
“Foreign bribery schemes like this pose a significant threat to the public trust and fair-trade practices,” said Special Agent in Charge Mark Dawson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Houston. “This plea is a step in the right direction, but we will continue to level the playing field for companies and consumers by aggressively investigating individuals and corporations who violate the FCPA and misuse our financial system.”
De Jongh pleaded guilty to one count of conspiracy to commit money laundering. He is scheduled to be sentenced by U.S. District Judge Gray H. Miller on Aug. 19, and faces a maximum penalty of 20 years in prison. Judge Miller will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. In addition, as part of his plea, De Jongh also agreed to forfeit over $3 million seized from his bank accounts and 15 properties that he purchased with his corrupt proceeds.
To date, the Justice Department has announced charges against 28 individuals, 22 of whom have pleaded guilty, as part of a larger, ongoing investigation by the U.S. government into bribery at PDVSA.
HSI Houston is conducting the ongoing investigation with assistance from HSI Boston and Miami.
Trial Attorney Sarah E. Edwards and Assistant Chief Sonali D. Patel of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Robert S. Johnson and John P. Pearson of the U.S. Attorney’s Office for the Southern District of Texas are prosecuting the case. Assistant U.S. Attorney Kristine E. Rollinson is handling the forfeiture aspects of the case.
The Justice Department’s Office of International Affairs, the Swiss Federal Office of Justice and the Office of the Attorney General of Panama also provided assistance.
The Fraud Section is responsible for investigating and prosecuting all Foreign Corrupt Practices Act (FCPA) matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Five Guys shooter sent to federal prisonRead the Press Release
HOUSTON – A 25-year-old Houston resident has been handed a lengthy federal prison sentence after robbing a Five Guys restaurant and shooting an off-duty law enforcement officer, announced Acting U.S. Attorney Jennifer B. Lowery.
Keith Thomas pleaded guilty Sept. 24, 2020, to interference with commerce by robbery and discharging a firearm during or in relation to that robbery.
Today, Chief U.S. District Lee H. Rosenthal handed Thomas an 87-month sentence for the robbery. He also received an additional 120 months for the firearms charge which must be served consecutively to the other prison term imposed. The sentences will be immediately followed by five years of supervised release. At the hearing, the court heard additional evidence that detailed the victim’s injuries, continuing impairment and hospital stay. Judge Rosenthal noted that what Thomas did that day was evil and caused extreme trauma to many.
“The men and women of our local law enforcement continue to put themselves in harm’s way each and every day,” said Special Agent in Charge Fred Milanowski of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). “ATF will continue to fight firearms related violent crime alongside our partner agencies and keep our community safe for our neighbors.”
On Oct. 16, 2019, Thomas entered the Five Guys restaurant located at 2902 Shepherd Drive in Houston with a firearm. There, Thomas pointed the weapon at customers and employees and demanded money. He was able to steal cash from the cash register and from patrons.
Prior to exiting the restaurant, Thomas discharged his firearm, striking a Harris County constable who was approaching the door. The officer was off official duty with Harris County Precinct 5, but working security at the location. Thomas then fled the scene.
Law enforcement found a cellphone near the restaurant which was eventually traced to Thomas.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Houston Police Department and ATF conducted the investigation. Assistant U.S. Attorney Jill Stotts prosecuted the case.
Former Venezuelan official pleads guilty in connection with international bribery and money laundering schemeRead the Press Release
HOUSTON - A dual U.S.-Venezuelan citizen and former official at Citgo Petroleum Corporation has pleaded guilty for his role in laundering millions of dollars in bribes and corruptly providing business advantages.
Citgo is a Houston-based subsidiary of Venezuela’s state-owned and state-controlled energy company Petróleos de Venezuela S.A. (PDVSA),.
Jose Luis De Jongh Atencio (De Jongh), 48, was the former procurement officer and manager in Citgo’s Special Projects Group. According to court documents, between approximately 2013 and 2019, he accepted over $7 million in bribe payments in exchange for assisting businessmen and related companies in procuring contracts with Citgo. De Jongh also provided them with other business advantages.
Two included Jose Manuel Gonzalez Testino (Gonzalez), a dual U.S.-Venezuelan citizen, and Tulio Anibal Farias Perez (Farias), a Venezuelan national and Houston resident.
De Jongh admitted to directing bribe payments from Gonzalez, Farias and others into bank accounts in the names of shell companies he controlled in Panama and Switzerland. In some instances, he also directed the creation of fake invoices to justify the payments. De Jongh laundered the bribe proceeds through U.S. and international bank accounts and used the funds to purchase real property located in the Houston area. In addition to monetary payments, De Jongh also received bribes in the form of gifts and other things of value from Gonzalez, Farias and others including tickets to a 2014 World Series Game, Super Bowl XLIX in 2015, and a U2 concert.
Gonzalez and Farias also entered guilty pleas in connection with the case.
De Jongh pleaded guilty today to one count of conspiracy to commit money laundering. U.S. District Judge Gray H. Miller accepted the plea and has set sentencing for Aug. 19. At that time, De Jongh faces up to 20 years in prison.
As part of his plea, De Jongh also agreed to forfeit over $3 million seized from his bank accounts and 15 properties he purchased with his corrupt proceeds.
To date, the Justice Department has announced charges against 28 individuals, 22 of whom have pleaded guilty, as part of a larger, ongoing investigation into bribery at PDVSA.
HSI Houston is conducting the ongoing investigation with assistance from HSI Boston and Miami.
Assistant U.S. Attorneys (AUSA) Robert S. Johnson and John P. Pearson are prosecuting the case along with Trial Attorney Sarah E. Edwards and Assistant Chief Sonali D. Patel of the Criminal Division’s Fraud Section. AUSA Kristine E. Rollinson is handling the forfeiture aspects of the case.
The Justice Department’s Office of International Affairs, the Swiss Federal Office of Justice and the Office of the Attorney General of Panama also provided assistance.
Brownsville man admits guilt and forfeits $2.5M in real estateRead the Press Release
McALLEN, Texas – A 54-year-old man has entered a guilty plea to conspiracy to defraud the United States and aiding and abetting the failure to file a form 8300, announced Acting U.S. Attorney Jennifer B. Lowery.
Jesus Juraidini admitted to paying over $2.5 million to Delfino Gaona in connection with the purchase and/or construction of at least six residential and commercial properties. Gaona, 48, Mission, was doing business as Keystone Construction and DG & GG Investments LLC.
Juraidini admitted he and Gaona conspired to avoid currency reporting requirements from approximately January 2010 through at least Nov. 14, 2018. Juraidini admitted he knew that under federal law, a non-financial trade or business such as the businesses Gaona operated must file a notice with the Secretary of the Treasury for the receipt of $10,000 in currency in one transaction, known as an IRS Form 8300.
Juraidini knew Gaona was not going to file the required document. A review of records confirmed that Gaona nor his business entities filed the proper form documenting the cash proceeds.
As part of his plea agreement, Juraidini also agreed to a money judgment in the amount of $2,519,000 and forfeiture of 10 properties in Hidalgo County.
U.S. District Judge Randy Crane will impose sentencing June 3. At that time. Juraidini faces up to five years in prison. He is set for a bond hearing before U.S. Magistrate Judge J. Scott Hacker today at 3 p.m.
Gaona previously pleaded guilty and is pending sentencing before U.S. District Judge Micaela Alvarez June 24.
The FBI conducted the investigation with the assistance of the Drug Enforcement Administration, Texas Department of Public Safety, Texas Department of Insurance, Hidalgo County Sheriff’s Office and police departments in McAllen and Pharr. Assistant U.S. Attorneys Roberto Lopez Jr. and Rick Blaylock Jr. are prosecuting the case.
Bar owner charged with fraudulently receiving funds from CARES Act programRead the Press Release
LAREDO, Texas - A 44-year-old Bryan resident has been charged with one count of wire fraud, announced Acting U.S. Attorney Jennifer B. Lowery.
Keith Anton Johnson is set to make his initial appearance today before U.S. Magistrate Judge Sam Sheldon at 2 p.m.
The indictment, returned March 10, alleges Johnson fraudulently received $123,500 in Payroll Protection Program (PPP) funds from the Small Business Administration as part of the Coronavirus Aid, Relief and Economic Security (CARES) Act.
According to the indictment, Johnson owned and operated KJR Entertainment Holdings LLC in conjunction with others from January 2020 through July 2020. The primary concern of KJR Entertainment was the operation of a bar and live music venue in Bryan known as Southerns, according to the charges.
Johnson allegedly submitted required payroll information purporting to be that of current employees to justify the basis for a PPP loan. On these forms, he allegedly attested to an employee’s current status when, in fact, the one-time employee had quit in January 2020, according to the charges.
The indictment alleges Johnson was ineligible for the funds due to a pending indictment in a separate case.
PPP application forms required the applicant to acknowledge program rules and to certify and attest to various qualifiers. One such question referred to an applicant’s criminal charges. Johnson answered no, even though he knew he was currently facing charges in Harris County, according to the indictment.
The CARES Act is a federal law enacted March 27, 2020, to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief the CARES Act provides is the authorization of up to $349 billion in United States Small Business Administration (SBA)-guaranteed and forgivable loans to small businesses through the PPP.
Businesses must use PPP loan proceeds for certain permissible expenses, such as payroll costs, interest on mortgages, rent and utilities. Interest and principal on PPP loans can be entirely forgiven if the business spent the loan proceeds on these expense items within a designated period of time.
If convicted, Johnson faces up to 20 years in prison and a possible $250,000 maximum fine.
The FBI and Harris County Precinct One Constables Office conducted the investigation. Assistant U.S. Attorney Thomas Carter is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Physician pays nearly half million dollars to resolve home health care fraud allegationsRead the Press Release
HOUSTON – A doctor of osteopathic medicine from Bellaire has paid to resolve allegations he falsely certified patients for home health services and received improper payments, announced Acting U.S. Attorney Jennifer B. Lowery.
Truc Le, 51, is a primary care physician in southwest Houston.
In 2016, authorities began an investigation into a home health agency known as Unified Medical Group Inc. That investigation appeared to show Le had certified patients for home health services without any knowledge of the patients’ medical condition or homebound status. Instead, Le signed forms that Unified representatives provided to him on a regular basis.
In addition, Unified sent improper payments to Le in violation of the Anti-Kickback Statute. It prohibits offering or paying remuneration to induce the referral of items or services that Medicare, Medicaid and other federally-funded programs cover. Claims submitted to these programs in violation of the Anti-Kickback Statute give rise to liability under the False Claims Act.
“Medical professionals put the integrity of our federal health care programs at risk when they just rubber-stamp forms,” said Lowery. “It is made worse when improper payments are the source of their motivation. With the investigative assistance of our federal and state partners, we will continue to do what we can to protect our nation’s systems and the citizens they are designed to serve.
Le has agreed to pay $475,000 to resolve the allegations.
The Department of Health and Human Services - Office of Inspector General, FBI and Texas Medicaid Fraud Control Unit conducted the investigation.
Assistant U.S. Attorneys Melissa Green, Brad Gray and Andrew Bobb handled the matter on behalf of the United States.
The claims resolved by this agreement are allegations only, and there has been no determination of liability.
Hidalgo County EMS owner convicted of bankruptcy fraudRead the Press Release
McALLEN, Texas – A 48-year-old man residing in Lyford has pleaded guilty to conspiracy to commit bankruptcy fraud, announced Acting U.S. Attorney Jennifer B. Lowery.
Kenneth B. Ponce is the CEO of Hidalgo County Emergency Services Foundation doing business as Hidalgo County EMS, South Texas Air Med and South Texas EMS (collectively referred to as Hidalgo County EMS). On Oct. 8, 2019, Hidalgo County EMS initiated bankruptcy proceedings in the Southern District of Texas (SDTX) Corpus Christi Division. Today, Ponce admitted that during the bankruptcy proceeding, he committed perjury when filing official forms requiring him to disclose financial affairs, debts and assets of Hidalgo County EMS. Ponce failed to disclose or falsified certain transactions in order to conceal property from the bankruptcy estate. He also fraudulently received material amounts of property from the bankruptcy estate and permitted others to continue to do so.
As part of the plea, Ponce admitted to fraudulent agreements involving an Edinburg property. The purpose was to forfeit equitable interests and restructuring of over $264,000 in order to give another individual preferential treatment over other creditors. In official forms filed with the bankruptcy court, Ponce did not disclose any prior agreements concerning the property or related equitable interests Hidalgo County EMS had possessed
Hidalgo County EMS was also paying WFAS Inc. for leases on the exclusive use of two airplanes. Ponce owned WFAS. In bankruptcy filings, Ponce said the leases were dedicated to emergency transfers. In reality, at least one of the planes was inoperable during portions of the bankruptcy. Ponce also personally used the planes or they were for chartered flights he had arranged. Ponce would retain the profit, while Hidalgo County EMS paid the leases.
Ponce also knew of certain payments Hidalgo County EMS made towards a residence in McAllen he personally used as well as other payments not actually for the benefit of Hidalgo County EMS. Ponce further admitted he received an interest payment from $50,000 another individual had embezzled from the Hidalgo County EMS bankruptcy estate.
He did not disclose any of this to the bankruptcy court or Hidalgo County EMS creditors.
As part of his plea, Ponce also agreed to a money judgment in the amount of $124,010.15 and restitution to Hidalgo County EMS or its successors.
U.S. District Judge Randy Crane accepted the plea and set sentencing for May 26. At that time, Ponce faces up to five years in prison. He was permitted to remain on bond pending that hearing.
The FBI conducted the investigation with the assistance of the McAllen Police Department. Assistant U.S. Attorney (AUSA) Roberto Lopez Jr. prosecuted the case. AUSA Richard Kincheloe is representing the United States in the underlying bankruptcy proceedings.
Laredoan admits to transporting conspiracy causing deathRead the Press Release
LAREDO, Texas – A 27-year-old Laredo resident has pleaded guilty to a conspiracy which resulted in the death of an undocumented alien, announced Acting U.S. Attorney Jennifer B. Lowery.
On Nov. 5, 2020, law enforcement attempted to pull over David Valadaz, but he fled. He then crashed into the fence of a local business before fleeing on foot. Three undocumented aliens were in the vehicle, one of whom was in the trunk.
The individual in the truck of the vehicle was deceased when authorities found him. Another had suffered serious bodily injury requiring surgery to his elbow.
Sentencing has been scheduled for June 17 before U.S. District Judge Marina Garcia Marmolejo. At that time, Valadaz faces up to life in federal prison and a possible $250,000 maximum fine.
Valadez has been and will remain in custody pending sentencing.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of the Texas Department of Public Safety. Assistant U.S. Attorneys Anthony Brown and April Ayers-Perez are prosecuting the case.
Jury convicts former officer for violating civil rightsRead the Press Release
McALLEN, Texas - A former local police officer has been convicted of sexually assaulting two men while in his custody, announced Acting U.S. Attorney Jennifer B. Lowery.
The federal jury deliberated for approximately two hours before returning guilty verdicts against Matthew Lee Sepulveda on two violations of civil rights following a two-day trial.
Sepulveda, 25, Edinburg, was a former law enforcement officer with the Progreso Police Department. He served from April 17 to July 2, 2019. The jury heard that while acting under his authority as a uniformed police officer, Sepulveda violated performed oral sex on the victims while they were in his custody.
The jury heard from the two victims.
The first explained that after he was arrested, Sepulveda took him from the jail cell and escorted him to another office at the police department. Sepulveda then began asking him questions of a sexual nature and performed oral sex on him. The victim testified because Sepulveda was a police officer, he was scared and did not think he could leave.
The evidence showed Sepulveda’s DNA was found on the victim’s underwear. The jury also heard that Sepulveda logged the victim’s arrest and case after the fact.
The second victim, who was only 17 at the time, was taken to the police department because he was unable to contact his parents subsequent to a traffic stop in which he was a passenger. He described how Sepulveda took him to an office located within the police department where he began asking the victim questions of a sexual nature and also performed oral sex on the victim.
The defense attempted to portray one of the victims as a liar and questioned some of the evidence. The jury was unconvinced and found Sepulveda guilty of two civil rights violations. They also found that on the second count, his conduct resulted in bodily injury and included attempted aggravated sexual abuse, aggravated sexual abuse and kidnapping.
U.S. District Judge Randy Crane presided over trial and set sentencing for May 20. At that time, Sepulveda faces up to life in federal prison.
Previously released on bond, he was taken into custody following the verdict today where he will remain pending that hearing.
The Hidalgo County Sheriff’s Office conducted the investigation with the assistance of the FBI. Assistant U.S. Attorneys Sarina S. DiPiazza and Angel Castro prosecuted the case.
Houston drug trafficker held responsible for moving millions in proceedsRead the Press Release
HOUSTON – A 51-year-old Mexican citizen who legally resided in Houston has been ordered to federal prison for leading a cocaine trafficking organization, announced Acting U.S. Attorney Jennifer B. Lowery.
Aldo Rigoberto Guerra-Guevara pleaded guilty Oct. 23, 2020, to conspiracy to possess with intent to distribute cocaine.
Today, Chief U.S. District Judge Lee H. Rosenthal imposed a 14-year federal prison sentence. Guerra-Guevara could potentially lose his legal status in the country and face removal proceedings following completion of his sentence. Judge Rosenthal also entered a final order of forfeiture for properties and vehicles used for cocaine trafficking valued at over $500,000.
At the hearing, the court found Guerra was the Houston leader and organizer of a drug trafficking organization responsible for moving millions in drugs and drug money throughout the United States.
Between November 2018 and January 2019, the organization moved over $7.1 million in U.S. currency and at least 486 kilograms of cocaine valued at over $12.5 million. Guerra-Guevara served as the Houston leader and also oversaw locations where drugs and money were stored for distribution.
The investigation culminated Jan. 18, 2019, when authorities seized 50 kilograms of cocaine from Silvano Adame Jr., 52, Galena Park; and over $687,000 in U.S. currency from Alejandro Valenzuela-Razo, 41, Laredo. They also pleaded guilty as did Hermes Tomasichi-Ledezma, 46, Monterrey, Mexico and Aldo Fernando Soto, 34, Houston. They are all pending sentencing and face up to 40 years in prison.
Two others - Eluid Alejandro Rodriguez Garcia, 41, and Jose Guillermo Ramirez, 41, both of Monterrey, Mexico – are also charged but not as yet in custody. They are considered fugitives and warrants remain outstanding for their arrests.
Guerra-Guevara has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration and IRS - Criminal Investigation conducted the two-year Organized Crime Drug Enforcement Task Force (OCDETF) investigation dubbed Dirty Dingo.
This operation is part of an OCDETF Strike Force Initiative which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs and transnational criminal organizations.
The specific mission of the Houston Strike Force is to disrupt and dismantle the drug trafficking organizations that designated Consolidated Priority Organization or Regional Priority Organization Targets head with their affiliates and that impact Houston and south Texas.
Assistant U.S. Attorney Edward F. Gallagher prosecuted the case.
Chiropractor charged with falsely billing for procedure learned via YouTubeRead the Press Release
HOUSTON – A 46-year-old local chiropractor and her medical group have been named in a civil suit under the False Claims Act alleging fraudulent billing, announced Acting U.S. Attorney Jennifer B. Lowery.
Suhyun An owns and manages Campbell Medical Group PLLC and Johnson Medical Group PLLC dba Campbell Medical Clinic in the Spring Valley area of Houston.
The civil complaint, filed today, alleges An fraudulently obtained over $3.9 million from the Medicare and TRICARE programs by billing for the implantation of neurostimulator electrodes. These are surgical procedures usually requiring use of an operating room, and Medicare pays thousands of dollars for this procedure, according to the complaint.
The complaint alleges that neither An nor her clinic’s employees performed surgery. Instead, they allegedly applied inexpensive devices used for electro-acupuncture. This procedure involves inserting needles into patients’ ears with a neurostimulator taped behind the ears with an adhesive, according to the complaint.
The lawsuit alleges nurse practitioners working for An learned how to apply the devices by watching YouTube videos and participating in trainings with sales representatives.
The complaint alleges An knew the devices were not billable or recklessly disregarded that fact. She allegedly read specific guidance from a Medicare contractor stating Medicare did not cover the devices because they only provided acupuncture. The suit further claims she ignored emailed warnings from employees and outside billing companies including warnings that the devices were being labeled as “possible fraud.”
The Department of Health and Human Services – Office of Inspector General and Defense Criminal Investigative Services assisted with the investigation. Assistant U.S. Attorney Brad Gray is handling the matter.
The claims are allegations only, and there has been no determination of liability.
Trucker who hauled nearly $2 million in drug money sent to prisonRead the Press Release
BROWNSVILLE, Texas – A 52-year-old man has been ordered to federal prison after he admitted to one count of money laundering, announced Acting U.S. Attorney Jennifer B. Lowery.
Edgardo Serrano pleaded guilty Nov. 2, 2020, admitting he drove $1,758,465 in proceeds from the sale of illegal narcotics from Florida to the Rio Grande Valley. He is originally from New Boston, Michigan, but now resides in Miami, Florida.
Today, U.S. District Judge Fernando Rodriguez Jr. ordered him to serve a 72-month sentence to be immediately followed by three years of supervised release. At the hearing, the court heard additional evidence detailing the importance of the $1,758,465 payment in exchange for more cocaine being sent to Miami. In handing down the sentence, Judge Rodriguez noted the large amount of cocaine the $1.7 million represented.
The investigation revealed trucks would pick up cocaine from South Texas to be driven to Florida for illegal sale. Drivers like Serrano would then return to the Rio Grande Valley with the illegal drug proceeds for delivery into Mexico to drug cartel members.
Authorities discovered Serrano in Hidalgo County April 17, 2020, with drug money secreted in his semi-tractor-trailer.
As part of his plea, he agreed to forfeit the $1,758,465 as illegal money obtained from the sale of cocaine.
Serrano was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations Drug Enforcement Administration and Bureau of Alcohol, Tobacco, Firearms and Explosives jointly conducted the Organized Crime Drug Enforcement Task Force (OCDETF) investigation titled La Familia Tradicion. Assistant U.S. Attorney Karen Betancourt prosecuted the case.
OCDETF is the largest anti-crime task force in the country. Its mission is to disrupt and dismantle the most significant drug trafficking and transnational criminal organizations that threaten the United States through prosecutor-led, intelligence-driven, multi-agency task forces that leverage the authorities and expertise of federal, state and local law enforcement.
Pharmacy owner and accountant indicted in $134M health care fraud schemeRead the Press Release
HOUSTON – Two Houston area men are now in custody on charges of conspiracy to commit health care fraud relating to a pharmacy fraud scheme, announced Acting U.S. Attorney Jennifer Lowery.
Authorities arrested Mohamed Mokbel, 56, and Fathy Elsafty, 62, both of Houston, today. They are expected to make their initial appearances before U.S. Magistrate Judge Andrew Edison at 2 p.m.
The eight-count indictment alleges Mokbel is the owner of several Houston area pharmacies, while Elsafty is his accountant.
4M Pharmaceuticals Inc. was the parent company for several retail pharmacies that operated in Houston, Fort Worth, South Florida and elsewhere, according to the charges. Mokbel was 4M’s CEO and allegedly had ownership interests in the subsidiary pharmacies. The charges allege Elsafty served as 4M’s accountant and tax preparer as well as nominee owner of the multiple pharmacies.
4M Pharmaceuticals allegedly functioned as an outbound telemarketing call center that solicited Medicare, Medicaid and commercial insurance patients nationwide – many over the over the age of 55. The indictment alleges call center employees offered patients medically unnecessary diabetic supplies and topical creams although many refused the solicitations. However, 4M Pharmaceuticals and pharmacies allegedly billed the patient’s insurance plan anyway. In some cases, 4M pharmacies billed for prescriptions dispensed after a patient’s death, according to the allegations.
The scheme also allegedly targeted doctors. The charges allege 4M Pharmaceuticals sent fax requests for prescriptions that patients often did not authorize. In several cases, the company billed patients for prescription drugs without a valid prescription, according to the allegations. 4M pharmacies also allegedly sent prescription requests to doctors for dead patients.
In several instances, audits required 4M to produce paperwork, according to the indictment. ElSafty allegedly participated in fabricating records.
The indictment alleges that from Dec. 13, 2013, through March 3, 2020, 4M pharmacies collectively received over $134 million in payments from Medicare and other healthcare benefit programs based on fraudulent claims. The funds were allegedly used, in part, to pay for Mokbel’s $1.5 million residence, $15 million in gambling and casino expenses and purchases and payments for a Ferrari and a Bentley automobile. Mokbel also transferred and controlled over $6 million in health care fraud proceeds in certificate of deposit accounts at banks, according to the allegations.
Mokbel and ElSafty are charged with one count of a conspiracy to commit health care fraud, three counts of health care fraud and four counts of money laundering. All carry a possible prison sentence of 10 years in prison and a $250,000 maximum fine. The use of telemarketing to target people over 55 as a means to commit health care fraud carries an additional penalty of 10 years.
Immigration and Customs Enforcement - Homeland Security Investigations, Department of Health and Human Services - Office of Inspector General, Food and Drug Administration - Office of Criminal Investigations, FBI, Texas Attorney General’s Medicaid Fraud Control Unit, IRS - Criminal Investigation, Ohio Medicaid Fraud Control Unit and Texas State Board of Pharmacy conducted the joint investigation.
Special Assistant U.S. Attorney Abdul Farukhi and Assistant U.S. Attorney Zahra Fenelon are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Mexican man indicted for smuggling nearly $1.6M million in fentanyl and other drugs into the U.S.Read the Press Release
LAREDO, Texas – A federal grand jury sitting in Laredo has charged a Mexican man for illegally importing approximately 30.26 kilograms of narcotics, announced Acting U.S. Attorney Jennifer B. Lowery.
On Feb. 11, authorities apprehended Jose Lopez-Sanchez at the Lincoln Juarez Bridge port of entry in Laredo attempting to travel into the United States, according to the charges. He had allegedly given an inconsistent statement at primary inspection and sent to secondary.
A K-9 allegedly alerted to the presence of narcotics. An X-ray scan also revealed anomalies behind the vehicles firewall and rear passenger seats, according to the charges.
The charges allege that upon physical examination, law enforcement discovered a total of 30 bundles of meth with an approximate weight of 17.78 kilograms. They also allegedly found one bundle of heroin and eight bundles of fentanyl weighing 1.2 and 11.28 kilograms, respectively.
The drugs have an estimated combined street value of approximately $1,585,855.
If convicted, Lopez-Sanchez faces a mandatory minimum of 10 years and up to life in prison and a possible $10 million maximum fine.
Immigration and Customs Enforcement’s Homeland Security Investigations and Customs and Border Protection conducted the investigation. Assistant U.S. Attorney Michael Makens is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Local man indicted for smuggling multiple drugs in cardboard boxRead the Press Release
LAREDO, Texas – A 46-year-old resident of Pharr has been charged with importing kilogram quantities of meth, heroin and cocaine, announced Acting U.S. Attorney Jennifer B. Lowery.
A federal grand jury returned the indictment today against Eduardo Maldonado. Previously charged by complaint, he remains in custody pending his arraignment in the near future.
Maldonado allegedly conspired with others to import 1.42, 2.04 and 4.16 kilograms of meth, heroin and cocaine, respectively.
On Feb. 8, Maldonado applied for entry into the United States a passenger on a commercial bus that arrived at the Lincoln-Juarez bridge Port of Entry in Laredo, according to the indictment. Authorities had conducted an X-ray scan of the luggage and allegedly observed anomalies in a cardboard box. A K-9 unit then positively alerted for the presence of contraband, according to the charges. Law enforcement allegedly determined the box belonged to Maldonado.
A physical search of the box revealed a total of nine packages, all which allegedly tested positive for cocaine, meth and heroin. The drugs have a combined estimated street value of $162,000.
If convicted, Maldonado faces up to life in prison and a possible $10 million fine.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of Customs and Border Protection. Assistant U.S. Attorney Paul A. Harrison is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless and until convicted through due process of law.