Southern District of Texas
Press releases recorded for this federal judicial district.
Houston man gets life for trafficking girls for sexRead the Press Release
HOUSTON – A 45-year-old Houston man has been sent to prison and ordered to pay nearly $1 million following his convictions on five separate counts of sex trafficking involving adults and minors, announced U.S. Attorney Ryan K. Patrick.
A Houston federal jury deliberated for less than three hours before convicting David Mearis Oct. 18, 2019, following three days of trial.
Today, U.S. District Judge Kenneth Hoyt sentenced Mearis to life in federal prison on each count to run concurrently. He was further ordered to pay $921,680 in restitution to the victims.
At the hearing, the court heard additional information including excerpts from victim impact statements two of the victims had prepared. “Many days I thought might be my last, being beat as if not human,” said one woman. “I ask that you ensure that no other human has to be subject to the threat of Mr. Mearis. He has created distress and trauma to one too many women and I how we are the last victims of his destructive mind.” Another victim called Mearis the “Devil. I was fearing for my life not knowing how to escape the humiliation that was going on. I have been mentally and physically abused,” she said.
“David Mearis was a career pimp who abused, controlled, and exploited his victims. He stooped to a new kind of low by taking advantage of one of the girls who had a learning disability and the mental capacity of a child,” said FBI Special Agent in Charge Perrye K. Turner. “Mearis wasn't the caretaker he wanted the court or his prey to believe. He was a dangerous predator who saw his victims not as girls or women, but a money-making commodity."
At trial, the jury heard evidence that spanned from approximately 2007 – 2016. Four victims testified about how they each met Mearis while still teenagers and how he won them over with gifts and kindness before using threats, sexual abuse and physical force to compel them into prostitution.
The jury heard Mearis knew what he was doing and that he lived off the backs of these young women and girls. The government described how Mearis exerted constant control over the female victims. At today’s hearing, the court heard Mearis trafficked one victim for eight years, during which she “endured his reign of terror.”
One girl began a relationship with Mearis, then 32, when she was 17 after
she had run away from her Oakland, California, home. Another victim was only 15 when she met Mearis, then 34. Both of these girls considered Mearis their boyfriend in the earlier stages of their relationships but were eventually forced to engage in commercial sex in north Houston. One testified that they had to engage in these acts daily and at all times of the day.
Another victim, 14, encountered Mearis, then 41, and eventually ran away to live with him after they met on MocoSpace. She testified he had sexually assaulted her twice while she was with him in 2016.
Testimony revealed Mearis had put at least two of the girls on a peanut butter diet in order to fatten them up for the purpose of working as his prostitute. Evidence also showed text messages between Mearis and several victims demonstrating his constant control over their activities, including during the sex dates themselves. He controlled where they went, what they wore, what they ate and with whom they engaged in commercial sex. The jury saw commercial sex advertisements Mearis created for two of the victims and heard evidence about numerous times Mearis had accessed Backpage, a site formerly used for the purpose of advertising people for sexual activity. He also had bonded one of the victims out of jail at least twice after she was arrested for engaging commercial sex.
Some victims testified Mearis perpetrated acts of violence upon them, from slapping them across the face to being bound and gagged. They reported multiple instances in which they feared physical retaliation if they did not comply with demands, did not do as instructed or perform sexual acts as required. One victim described violence she experienced at the hands of Mearis following her release from jail.
At one point, when the girls were not making enough money, Mearis made one of them participate in a bank robbery. When it did not go exactly as he had planned, he berated her, calling her stupid, among other things.
That victim also described how she had virtually no relationships with anyone outside Mearis’ circle. He had taken her ID, would not let her drive or even use the phone. She was brought to tears multiple times on the stand. In one instance, she described that when her grandfather passed away, Mearis would not let her go unless he went with her. In trying to find the right word to describe the experience, she testified she felt “kidnapped” at the time and called him in court a “threat to young women.” “I felt like I had met the devil,” she said.
When she had eventually made it back to family in California after seeking help from Houston authorities, Mearis contacted her and threatened to call the police about her actions and the bank robbery if she did not return.
Another victim described how Mearis had hog-tied her and that he made her find other women for him. The jury heard Mearis had put a sock in her mouth, a gun to her head and threatened to kill her.
Evidence and testimony further established Mearis caused Supplemental Security Income benefits, intended for one of the victims, be directed to him. That victim had been diagnosed with mental retardation at an early age. Mearis himself described her as having the “mental capacity of a child” and could not do the simplest of tasks without constant supervision and instruction.
The defense implied the victims only implicated Mearis to avoid prosecution for their actions. The defense attempted to portray Mearis as simply a loving boyfriend who provided protection while the girls voluntarily engaged in commercial sex. However, testimony revealed the victims had to turn over the monies they earned for sexual acts directly to Mearis.
The jury did not believe the defense claims and found him guilty as charged.
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, Texas Attorney General’s Office and FBI conducted the investigation with the assistance of the Harris County District Attorney’s Office as part of the Human Trafficking Rescue Alliance (HTRA).
Established in 2004, the United States Attorney’s office in Houston formed the 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 a national model in identifying and assisting victims of human trafficking and prosecuting those engaged in trafficking offenses.
Assistant U.S. Attorneys Sherri Zack and Sebastian Edwards prosecuted the case.
Third Clan Del Golfo associate extradited to face charges for international cocaine distribution conspiracyRead the Press Release
HOUSTON – Another alleged associate of one of the most serious transnational organized criminal organizations will make his initial appearance in U.S. federal court today on charges of distributing kilogram quantities of cocaine from Colombia, announced U.S. Attorney Ryan K. Patrick.
Jose Alfredo Valencia, 43, is set to appear at 2 p.m. in Houston before U.S. Magistrate Judge Dena Henovice Palermo.
A federal grand jury returned an indictment against Alfredo-Valencia and others Aug. 16, 2018. Colombian authorities took him into custody at the request of the United States in November 2018. He was extradited and landed in Houston yesterday.
Valencia is an alleged close associate of Joaquin Guillermo David-Usuga aka Guillermo, 43, who is believed to be a ranking member of the Clan Del Golfo. David-Usuga was extradited to Houston Dec. 5, 2019, and is pending trial. Another Clan Del Golfo associate charged is Jhony Fidel Cuello-Petro aka Mocho, 45, who was extradited to Houston in October 2020. He pleaded guilty to international cocaine distribution in December 2020 and is pending sentencing.
The Department of Justice designated Clan Del Golfo as one of the most serious transnational organized criminal organizations that threatens the United States.
The indictment alleges Valencia, Cuello-Petro, David-Usuga and others were involved in the importation of kilogram quantities of cocaine into the United States. Both are charged with conspiracy to distribute cocaine internationally and one count of international cocaine distribution.
Valencia, Cuello-Petro and David-Usuga were allegedly involved in an ongoing five-year conspiracy to distribute cocaine from Colombia to the United States. In May 2019, they and others participated in distributing approximately 20 kilograms of cocaine in Colombia knowing it was to be imported into the United States, according to the allegations.
The FBI and Drug Enforcement Administration led the Organized Crime Drug Enforcement Task Force (OCDETF) investigation dubbed “Operation Macondo.”
The 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 that impact Houston and south Texas.
The Justice Department’s Office of International Affairs was responsible for securing the extradition. The Justice Department also extends its gratitude to the government of Colombia and the Colombian police and military for its cooperation and assistance.
Assistant U.S. Attorneys Casey N. MacDonald and Anibal Alaniz 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.
Houston man admits to hijacking interstate freight shipmentRead the Press Release
CORPUS CHRISTI, Texas – A 22-year-old Houston man has entered a guilty plea to theft from an interstate cargo shipment, announced U.S. Attorney Ryan K. Patrick.
Maksims Klopovs admitted he was to be paid for picking up a large load of electronics originally set for delivery to a college in Corpus Christi
The investigation revealed that 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.
Klopovs claimed the shipment and began to load the electronics into the rental truck. Authorities then took him into custody.
U.S. District Judge Nelva Gonzales Ramos will impose sentence April 6. At that time, Klopovs faces up to 10 years in federal prison and a possible $250,000 maximum fine.
Klopovs has been and will remain in custody pending that hearing.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Robert D. Thorpe Jr. is prosecuting the case.
Bangladeshi National Sentenced for Conspiracy to Bring Aliens to the United StatesRead the Press Release
A Bangladeshi national formerly residing in Monterrey, Mexico, was sentenced to 46 months in prison followed by three years of supervised release for his role in a scheme to smuggle aliens from Mexico into the United States.
According to the plea agreement, Moktar Hossain admitted that from March 2017 to August 2018, he conspired to bring, and did bring, Bangladeshi nationals to the United States at the Texas border in exchange for payment. Hossain operated out of Monterrey, Mexico, where he maintained a hotel that housed aliens on their way to the United States. Hossain paid drivers to transport the aliens to the U.S. border, and gave the aliens instructions on how to cross the Rio Grande river.
“The defendant was a key player in an organized smuggling network that operated for profit and preyed on Bangladeshi nationals who wanted to enter the United States illegally,” said Acting Assistant Attorney General David P. Burns of the Justice Department’s Criminal Division. “This sentence serves as a clear deterrent to participants of such transnational criminal organizations who seek to undermine the security of our borders by illegally facilitating the travel of foreigners into the United States for a financial gain.”
“Border security and national security are one in the same,” said U.S. Attorney Ryan K. Patrick for the Southern District of Texas. “We must know who is coming into the country, and we cannot allow unfiltered access. My office continues to work with all our partners executing this mission.”
“The investigation, prosecution, and sentencing of Hossain is a result of HSI’s expertise in transnational investigations and unique ability to coordinate investigative efforts across international boundaries with foreign counterparts,” said Special Agent in Charge Shane Folden of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) San Antonio. “HSI will continue to work with our law enforcement partners both domestic and international to aggressively dismantle criminal travel networks that pose a threat to U.S. national security.”
This case was investigated by HSI Laredo, with assistance from the HSI Human Smuggling Unit, HSI Monterrey, HSI Houston, HSI Calexico, U.S. Customs and Border Patrol, U.S. Border Patrol, and the U.S. Marshals Service. The investigation was conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI. The ECT program focuses on human smuggling networks that may present particular national security or public safety risks, or present grave humanitarian concerns. ECT has dedicated investigative, intelligence and prosecutorial resources. ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.
This case was prosecuted by Trial Attorneys James Hepburn and Erin Cox of the Criminal Division’s Human Rights and Special Prosecutions Section with assistance from the U.S. Attorney’s Office for the Southern District of Texas.
South Texas siblings plead guilty for their roles in marijuana smuggling ventureRead the Press Release
LAREDO, Texas – Two South Texas men have admitted they organized the smuggling of approximately 170 kilograms of marijuana from El Cenizo to Laredo, announced U.S. Attorney Ryan K. Patrick.
Roberto Chavarria, 38, pleaded guilty today, while his brother - Daniel Chavarria, 35, entered his plea Dec. 1, 2020. The El Cenizo men admitted to conspiring to possess with intent to distribute marijuana.
On May 25, 2017, both helped load large bundles of marijuana into the back of a black pickup truck at Roberto Chavarria’s residence in El Cenizo. The drugs had been previously gathered from the banks of the Rio Grande River. Daniel Chavarria then attempted to escort the drug-laden truck to a stash house in Laredo.
After conducting surveillance, law enforcement attempted to stop the pickup truck for a traffic violation while in route. However, the driver led authorities on a chase and quickly fled the scene.
Authorities found the abandoned vehicle shortly thereafter in the middle of the road with the lights on and still running. They conducted a search and removed five large bundles of marijuana weighing 169.5 kilograms with an estimated street value of $299,200.
Law enforcement were eventually able to identify and locate the brothers and took them into custody.
U.S. District Judge Diana Saldana will impose sentencing at a date still to be determined. At that time, both men face a minimum of five years in federal prison and a possible $5 million maximum fine.
The Drug Enforcement Administration conducted the investigation with assistance of the Webb County Sheriff’s Office. Assistant U.S. Attorney Michael Makens is prosecuting the case.
4 sentenced for roles in illegally harboring over 100 immigrantsRead the Press Release
McALLEN, Texas – Four Starr County residents have been handed significant sentences following their respective convictions involving the harboring of 104 illegal aliens in harsh conditions, announced U.S. Attorney Ryan K. Patrick.
Juan Carlos Barrera, 28, Odilon Oyervides Jr., 22, Isaac Villarreal, 25, and Gustavo Alberto Alaniz Jr., 25, all of Roma, pleaded guilty in late 2019.
Today, U.S. District Judge Randy Crane ordered Oyervides to serve 108 months in prison. On Aug. 7, 2019, U.S. District Judge Marina Marmalejo sentenced Oyervides to 18 months in prison for his conviction of being a felon in possession of a firearm. Today’s sentence will run consecutively for a total 126 months in prison.
In December 2020, Barrera and Alaniz received 120-month sentences, while Villarreal was sentenced to 63 months. All the terms will each be immediately followed by three years of supervised release.
“If it were not for the efforts of the federal, state and local law enforcement agencies who worked on this case these dangerous criminals would have continued harming unsuspecting illegal aliens,” said Rio Grande Valley Sector Chief Patrol Agent Brian Hastings. “Criminal organizations exploit migrants throughout their journey and the abuse does not stop when they arrive in the U.S.”
“These men, who supported alien smuggling and alien harboring, placed their personal profit ahead of public safety and U.S. border security,” said Maria Michel-Manzo, Assistant Special Agent in Charge of Immigration and Customs Enforcement’s Homeland Security Investigations (HSI). “The resulting lengthy prison sentences should act as a warning to others who are involved in this dangerous trade of the severe consequences of their actions.”
During the sentencing hearings, U.S. District Judge Randy Crane noted their “egregious” conduct and ruled the men had threatening the aliens with stun guns and a firearm, physically mistreated them and failed to provide sufficient food and water. He also held them accountable for maintaining 104 aliens in an open-sided shed without a shower or toilet facilities in the middle of summer and placed the group at risk for serious bodily injury or death. They also had harbored multiple unaccompanied minors.
On Aug. 8, 2019, a man alerted authorities in rural Starr County. He identified himself as an illegal alien who escaped from a nearby ranch because property caretakers were mistreating him. He said others were being held against their will and requested assistance. Law enforcement responded to the location and were eventually able to locate all 104 illegal aliens.
All four men have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Rio Grande City Border Patrol’s Field Intelligence Group conducted the investigation with assistance from the Texas Department of Public Safety and the Starr County Sheriff’s Office. Assistant U.S. Attorney Robert L. Guerra Jr. is prosecuting the case.
Justice Department Secures Relief for U.S. Army National Guard Reservist on Employment Discrimination Claim Against Luxury Jeweler Harry WinstonRead the Press Release
The Justice Department and the U.S. Attorney’s Office for the Southern District of Texas announced today that they resolved a claim that luxury jeweler Harry Winston Inc. violated the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) by refusing to offer full-time employment to U.S. Army National Guard Reservist John A. Walker because of his military service obligations.
“Discrimination against members of the National Guard or Reserve because of their service to our country is intolerable, violates the Uniformed Services Employment and Reemployment Rights Act, and the Department of Justice will not stand for it,” said Assistant Attorney General Eric S. Dreiband of the Civil Rights Division. “We honor all servicemembers for their service to our nation, and this settlement signals the Justice Department’s ongoing commitment in protecting the rights of our men and women in uniform.”
“Our soldiers, sailors, airmen and marines fight for us. Fighting for their legal rights is the least we can do,” said U.S. Attorney Ryan K. Patrick for the Southern District of Texas. “All service members, including members of the National Guard and Reserve, need to know that employers cannot discriminate against them based on their military service obligations. This settlement sends a strong message to employers that the U.S. Attorney’s Office will protect the rights of our service members.”
In December 2017, reservist Walker applied for a job with Harry Winston, Inc., which denied his application. Walker alleged that Harry Winston, Inc. refused to hire him because of his military service obligations. Under the terms of the settlement, Harry Winston, Inc. has agreed to fully compensate Walker for his back-pay and non-wage damages.
Congress enacted USERRA to encourage non-career service in the uniformed services by reducing employment disadvantages; to minimize the disruption to the lives of persons performing military service, their employers and others by providing for the prompt reemployment of such persons upon their completion of such service; and to prohibit discrimination against persons because of their service in the uniformed services or if they pursue a claim under USERRA.
The U.S. Department of Labor (DOL) referred this matter following an investigation by their Veterans’ Employment and Training Service. The U.S. Attorney’s Office for the Southern District of Texas and the Employment Litigation Section of the Department of Justice’s Civil Rights Division handled the case and work collaboratively with the DOL to protect the jobs and benefits of military members.
This investigation was led by Assistant U.S. Attorneys Keith Edward Wyatt and Annalisa Cravens and Paralegal Specialist Raymond Babauta of the Southern District of Texas, along with Assistant Director Andrew Braniff of the Department of Justice’s Servicemembers and Veterans Initiative and Senior Trial Attorney Alicia Johnson of the Civil Rights Division’s Employment Litigation Section.
Employment discrimination claim resolved on behalf of U.S. Army National Guard reservistRead the Press Release
HOUSTON – Luxury Jeweler Harry Winston has paid a U.S. Army reservist to resolve a claim they violated the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) by refusing to offer him full-time employment.
“Discrimination against members of the National Guard or Reserve because of their service to our country is intolerable, violates the Uniformed Services Employment and Reemployment Rights Act, and the Department of Justice will not stand for it,” said Assistant Attorney General Eric S. Dreiband of the Civil Rights Division. “We honor all service members for their service to our nation, and this settlement signals the Justice Department’s ongoing commitment in protecting the rights of our men and women in uniform.”
“Our soldiers, sailors, airmen and marines fight for us. Fighting for their legal rights is the least we can do,” said U.S. Attorney Ryan K. Patrick for the Southern District of Texas (SDTX). “All service members, including members of the National Guard and Reserve, need to know that employers cannot discriminate against them based on their military service obligations. This settlement sends a strong message to employers that the U.S. Attorney’s Office will protect the rights of our service members.”
In December 2017, John Walker applied for a job with Harry Winston Inc. who ultimately denied his application. Walker alleged Harry Winston Inc. refused to hire him because of his military service obligations.
Congress enacted USERRA to encourage non-career service in the uniformed services by reducing employment disadvantages. It also intended to minimize the disruption to the lives of persons performing military service, their employers and others by providing for the prompt reemployment of such persons upon their completion of such service. USERRA also prohibits discrimination against persons because of their service in the uniformed services or if they pursue a claim.
Under the terms of the settlement, Harry Winston Inc. has agreed to fully compensate Walker for his back-pay and non-wage damages.
The Department of Labor - Veterans’ Employment and Training Service conducted the investigation.
Assistant U.S. Attorneys Keith Edward Wyatt and Annalisa Cravens handled the matter with Assistant Director Andrew Braniff of the Department of Justice’s Service members and Veterans Initiative and Senior Trial Attorney Alicia Johnson of the Civil Rights Division’s Employment Litigation Section. SDTX paralegal specialists Raymond Babauta and Nicole Robbins also provided assistance.
FAUSA departs, criminal chief appointed 2nd in commandRead the Press Release
HOUSTON – The former criminal chief of the U.S. Attorney’s Office has been named First Assistant U.S. Attorney (FAUSA), announced U.S. Attorney Ryan K. Patrick.
Jennifer Lowery has been serving the office as criminal chief for the past three years under Patrick’s administration.
“Jennifer has served in influential positions throughout our office and the Department,” said Patrick. “Her experience has prepared her for this new role and I know she will be successful. She knows 2021 will be a very busy and challenging year for the office as operations eventually get back to normal.”
Lowery joined the Southern District of Texas (SDTX) in 2008, but has been with the Department of Justice since 2000. She first served as a Special Assistant U.S. Attorney and then an Assistant U.S. Attorney (AUSA) in the Eastern District of Texas. During this time, she was detailed to Washington D.C. and New York, New York, as a hearing officer for the 9/11 Victims’ Compensation Fund. She later worked in Washington D.C. in the Office of the Deputy Attorney General and Executive Office for US Attorneys in both their Counsel to Director’s Office and General Counsel’s Office.
While with the Southern District of Texas (SDTX), Lowery has served as an AUSA in the Major Offenders, Fraud and Organized Crime Drug Enforcement Task Force (OCDETF) Sections. She has also held the titles of Executive AUSA, deputy criminal chief of the Program Fraud Section, acting deputy criminal chief of the Major Fraud Section, senior litigation counsel and ethics advisor.
Lowery’s advancement comes as former FAUSA Tim Braley exists the office for a position in private practice. Braley served the SDTX for 17 years.
“Tim has been by my side since I was sworn in,” said Patrick. “There is nothing that has been accomplished or done for the benefit of the office without his input and advice. I know Tim will successful in his next chapter and he leaves the office with the gratitude of hundreds of colleagues. While I may be losing a trusted counselor, I am not losing a friend.”
Braley began his career with the SDTX in 2003, spending the majority of his tenure as an AUSA in OCDETF. In 2012, he became the deputy criminal chief of the Narcotics Enforcement/OCDETF Section and named chief of the Criminal Division in 2017. He served as Patrick’s FAUSA since January 2018.
The SDTX has the busiest criminal docket in the country. Prosecuting more cases against more defendants than most other USAOs nationwide, the SDTX represents 43 counties and nearly nine million people and covers 44,000 square miles. More than 200 attorneys and 500 total staff cover seven offices across the district.
Two RGV woman sentenced for involvement in meth conspiracyRead the Press Release
McALLEN, Texas – Two local women have been ordered to federal prison following their convictions of conspiring with each other to import approximately 50 kilograms of 99% pure meth from Mexico, announced U.S. Attorney Ryan K. Patrick.
Helen Garza and Herminia Cantu-Garcia, both 43 and of Rio Grande City and Roma, respectively, pleaded guilty in late February.
Today, U.S. District Judge Randy Crane imposed a 78-month sentence for both women to be immediately followed by three years of supervised release.
The women planned to import the narcotics Dec. 4, 2019. On that date, Garza drove a car from Mexico and attempted to enter the United States through the Roma Port of Entry. Authorities inspected the vehicle and found hidden compartments within its tires. Upon further examination, they ultimately found multiple bundles containing 50 kilograms of meth with a value of approximately $170,000.
Garza admitted she knew there were drugs in the car.
Further investigation revealed Cantu-Garcia had coordinated the drug trafficking with Garza and other individuals.
“The sentencing of Garza and Cantu-Garcia sends a clear message regarding the serious consequences for those who engage in criminal activity,” said Special Agent in Charge Shane Folden of Immigration and Customs Enforcement’s Homeland Security Investigations (HSI). “The vast scope of this criminal scheme would have had a devastating effect on the citizens of south Texas. HSI along with our law enforcement partners will continue to seek out and bring justice to those involved in the illicit drug trade.”
Both women 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 conducted the investigation with assistance from Border Patrol and Customs and Border Protection. Assistant U.S. Attorney Kristina Pekkala prosecuted the case.
Texan admits to attempting to illegally take cash to MexicoRead the Press Release
McALLEN, Texas – A 36-year old resident of Edinburg has pleaded guilty to bulk cash smuggling, announced U.S. Attorney Ryan K. Patrick.
Sergio Guadalupe Sauceda-Saenz is a legal permanent resident (LPR) who was residing in Edinburg. On April 4, he attempted to leave the United States through the Hidalgo Port of entry in his vehicle. Authorities conducted an outbound inspection which led to the discovery of $571,497 in bulk U.S. currency in the spare tire.
Today, he admitted to evading currency reporting requirement by knowingly concealing more than $10,000 dollars. Sauceda-Saenz acknowledged knowing he was concealing the money and that it was illegal to transport the currency from the U.S. to Mexico unreported. As part of the plea agreement, he has agreed to forfeit his interest in the seized cash.
U.S. District Judge Ricardo H. Hinojosa accepted the plea and set sentencing for Feb. 10, 2021. At that time Sauceda-Saenz faces up to five years in federal prison along with a possible $250,000 maximum fine. He could also lose his status as an LPR.
Sauceda-Saenz will remain in custody pending sentencing.
It is not a crime to carry more than $10,000, but it is a federal offense not to declare currency or monetary instruments totaling $10,000 or more to law enforcement upon entry or exit from the U.S. or to conceal it with intent to evade reporting requirements.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation along with Customs and Border Protection. Assistant U.S. Attorney Frances Blake Land is prosecuting the case.
Woman ordered to prison for smuggling methRead the Press Release
LAREDO, Texas – A 30-year-old woman from Bradenton, Florida, has been ordered to federal prison following her conviction of importing 15.62 kilograms of crystal meth, announced U.S. Attorney Ryan K. Patrick.
A Laredo jury deliberated for five hours following a two-day trial before convicting Mayra Aguirre on May 1, 2018.
Today, U.S. District Judge Diana Saldana handed Aguirre a 24-month sentence to be immediately followed by five years of supervised release. In handing down the sentence, the court noted Aguirre had accepted responsibility and demonstrated sincere remorse for her actions.
On Oct. 9, 2017, Aguirre attempted to enter the United States via the Lincoln-Juarez Bridge driving her recently-purchased silver 2012 Dodge Durango. Her sister and young toddler were with her. Officers became suspicious after she gave inconsistent replies to standard questions and could not provide proof of vehicle registration.
She was referred to secondary inspection, at which time officers detected a powerful chemical odor emanating from the interior of the vehicle. The odor did not dissipate and initially made some officers nauseous. An inspection revealed obvious signs of mechanical tampering with the discovery of non-factory bolts, glue and unusual welding under the carpeting. A subsequent search revealed 15.62 kilograms of meth stored within 29 plastic bags hidden inside a false “trap door” panel manually attached to the inside of vehicle.
At trial, the jury also heard that the drugs have an estimated value of up to $500,000 in Florida.
The defense attempted to convince the jury the meth was placed in Aguirre’s vehicle by unknown persons when it was stolen in Mexico a month prior to her arrest. They did not believe her claims and found her guilty as charged.
Aguirre was ordered into custody where she will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations and Customs and Border Protection conducted the investigation. Assistant U.S. Attorney (AUSA) Francisco J. Rodriguez and former AUSAs Christopher Dos Santos and Michael Eaton prosecuted the case.
Texas woman sent to prison for smuggling meth in spare tireRead the Press Release
McALLEN, Texas – A 50-year-old woman from San Antonio has been ordered to federal prison following her conviction for attempting to import approximately 18 kilograms of meth, announced U.S. Attorney Ryan Patrick.
Kandy Elizabeth Martinez pleaded guilty Dec. 6, 2019.
Today, U.S. District Judge Randy Crane ordered Martinez to serve a 42-month sentence to be immediately followed by three years of supervised of release.
On Sept. 30, 2019, Martinez attempted to gain entry into the United States via the Donna port of entry. During inspection, authorities conducted an X-ray examination which showed anomalies in the rear passenger quarter panel and spare tire located in the cargo area. Law enforcement ultimately found 18 bundles of meth weighing approximately 18 kilograms.
Martinez admitted she knowingly imported the drugs into the United States from Mexico with the intent to deliver them to San Antonio. She expected to be paid $3,000.
The drugs had an approximate street value of $72,000.
She 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 Customs and Border Protection conducted the investigation. Assistant U.S. Attorney M. Alexis Garcia prosecuted the case.
Sleep lab pays over $150,000 to resolve false billing claimsRead the Press Release
HOUSTON – Apnix Sleep Diagnostics LP has paid the United States $154,824 to resolve claims that it improperly billed the Medicare program for sleep studies, announced U.S. Attorney Ryan K. Patrick.
A proactive review of claims data demonstrated that Apnix was the one of the area’s highest paid sleep labs. In addition, the investigation revealed there had been several complaints regarding Apnix’s failure to adhere to Medicare regulations.
Medicare rules and regulations require that properly-trained and certified sleep technicians administer sleep studies. However, from Jan. 1, 2015, through July 15, 2019, Apnix improperly billed and received payment for sleep studies when they did not have the properly-trained and certified personnel present.
Apnix allegedly violated the False Claims Act by knowingly submitting, or causing to be submitted, false claims to Medicare for payment for sleep studies performed by these non-certified technicians.
The U.S. Attorney’s Office and Department of Health and Human Services - Office of Inspector General conducted the investigation. Assistant U.S. Attorney Melissa Green handled the matter.
The settlement resolved the government’s allegations without a determination of liability.
Former CCAD supervisors convicted of falsifying helicopter blade test recordsRead the Press Release
CORPUS CHRISTI, Texas – Two local man have admitted they falsified testing records of aircraft parts intended to be installed on Black Hawk helicopters, announced U.S. Attorney Ryan K. Patrick.
Samuel Escareno, 56, Robstown, entered his plea today, while Albert Flores, 59, Corpus Christi, pleaded guilty Oct. 29.
Flores and Escareno are both former supervisors at the Corpus Christi Army Depot (CCAD). At their respective pleas, they admitted they aided, abetted, counseled, commanded and induced others to make false entries and certifications related to UH-60 Black Hawk helicopter main rotor blade dynamic balance data sheets. As a result, nonconforming rotor blades appeared to meet specifications.
CCAD employees altered test sheets to make nonconforming blades appear to operate within specifications rather than return the blades to the shop for alteration or remanufacture. Because of the scheme, a total of 262 main rotor blades that failed to operate within specifications were shipped to Department of Defense installations worldwide between Jan. 7, 2012, and Oct. 7, 2014. These were to be installed on UH-60 Black Hawk helicopters.
Flores served as the CCAD Blade Division’s supervisor. Escareno was the team leader during this period. Following the discovery of the scheme, both were terminated.
CCAD employees that worked under Flores said he told them to manipulate dynamic balance data sheets. The operators understood that if testing revealed a blade did not meet specifications for "slope” or “load," they were expected to manipulate the testing data sheet rather than send the blade back to the shop for alterations. Some operators reported that Flores occasionally altered testing data sheets himself and then gave them back for their signature and certification.
While serving as team leader, Escareno personally altered at least 30 testing data sheets and falsely certified the blades as operating within specifications. When the shop was busy, operators would give Escareno the data sheets for failing blades who would then alter them indicating passing. Escareno then gave the altered sheet back to the operators to certify.
"Today's plea agreement is further evidence of the unwavering commitment between the US Army Criminal Investigations Division and the U.S. Attorney's Office to seek accountability and justice for anyone whose actions may result in harm to our Nation's most precious resource, the United States Warfighter," said Special Agent in Charge Ray A. Rayos of US Army CID - Major Procurement Fraud Unit (MPFU).
U.S. District Judge Nelva Gonzales will sentence Flores on Jan. 27, 2021, while Escareno is set for March 17, 2021. Both men face a sentence of up to 10 years in federal prison and a possible $250,000 maximum fine.
U.S. Army CID-MPFU conducted the investigation. Assistant U.S. Attorney Robert D. Thorpe Jr. is prosecuting the case.
Two Texans get substantial sentences for alien deathRead the Press Release
McALLEN, Texas — Two men have been ordered to federal prison following their conviction of transporting aliens that resulted in death, announced U.S. Attorney Ryan K. Patrick.
David Lee Davila, 29, Penitas, and Nathan Lee Tamez, 30, Donna, pleaded guilty Oct. 31, 2019, to one count of conspiracy to transport aliens resulting in the death of a person. Tamez also admitted to being a felon in possession of a firearm.
Today, U.S. District Judge Randy Crane sentenced Davila to 188 months in federal prison, while Tamez received a 151-month term of imprisonment.
In May 2019, Davila was involved in an unrelated incident in which a shooting occurred in connection with transporting aliens. Davila knew the danger the job entailed, still hired Tamez and a woman in June 2019 to transport aliens to another smuggler on his behalf.
When they arrived at the meeting location along with Davila, there was an altercation with the other party which led to gunfire. Everyone fled the scene which led to two vehicles chasing and striking each other. Ultimately, the woman Davila hired lost control of the vehicle and crashed into a residence in Alamo. Both she and Tamez were shot multiple times. The woman later succumbed to her injuries and subsequently died.
Davila and Tamez have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility designated in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of Alamo Police Department. Assistant U.S. Attorney Sarina S. DiPiazza prosecuted the case.
Owner of Texas chain of hospice companies sentenced for $150 million health care fraud and money laundering schemeRead the Press Release
BROWNSVILLE, Texas - A corporate executive has been ordered to prison after his conviction related to falsely telling thousands of patients with long-term incurable diseases, such as Alzheimers and dementia, they had less than six months to live and subsequently enrolling them in hospice programs.
A federal jury in McAllen convicted Rodney Mesquias, 48, San Antonio. The one-month trial in November 2019 was one of the first criminal hospice fraud prosecutions the Department of Justice has presented to a federal jury.
Today, U.S. District Court Judge Rolando Olvera ordered Mesquias to serve a total of 240 months in federal prison and to pay $120 million in restitution.
“Financial healthcare fraud is abhorrent enough, but to fraudulently diagnose patients with dementia or Alzheimer’s is the pinnacle of medical cruelness to both the patient and their family,” said U.S. Attorney Ryan K. Patrick of the Southern District of Texas. “They falsely gave patients life ending diagnosis and they will pay the price with years behinds bars.”
“Mesquias funded his lavish lifestyle by exploiting patients with long-term, incurable diseases by enrolling them in expensive but unnecessary hospice services,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “This significant sentence represents the department’s continued commitment to pursue those who orchestrate and commit healthcare fraud schemes.”
Mesquias and his co-conspirator Henry McInnis, 48, were both convicted of one count each of conspiracy to commit health care fraud, conspiracy to commit money laundering and conspiracy to obstruct justice as well as six counts of health care fraud. Mesquias was separately convicted on one count of conspiracy to pay and receive kickbacks.
From 2009 to 2018, Mesquias and McInnis engaged in a scheme that involved $150 million in false and fraudulent claims for hospice and other health care services. Mesquias owned and controlled the Merida Group, a large health care company that operated dozens of locations throughout Texas. McInnis was Merida Group’s CEO.
“Families seek to give comfort and support to their ailing loved ones when all other medical options are gone,” said Special Agent in Charge Christopher Combs, FBI San Antonio Division. “It is unconscionable and evil to prey upon the most vulnerable in our community to commit fraud against government-funded programs. The FBI is committed to protecting our communities from those who may not have the strength to protect themselves.”
“Mesquias’ scheme included paying kickbacks to physicians and fraudulently enrolling vulnerable beneficiaries in hospice care that prevented them from accessing curative care -- all done to steal millions of dollars from Medicare to fund lavish personal spending,” said Special Agent in Charge Miranda L. Bennett, Department of Health and Human Services Office of Inspector General’s (DHHS-OIG) Dallas Region. “This victimization is intolerable, and our investigators and law enforcement partners will continue to work hard to bring such criminals to justice and to protect those relying on federal health care programs.”
According to evidence presented at trial, the Merida Group, Mesquias and McInnis adopted a strategy to market their hospice programs as providing medical benefits “you don’t have to die to use.” They also aggressively enrolled patients with long-term incurable diseases, such as Alzheimers and dementia, and limited mental capacity who lived at group homes, nursing homes and in housing projects.
In some instances, Merida Group marketers falsely told patients they had less than six months to live and sent chaplains to lie to the patients. They also discussed last rites and preparation for their imminent death.
Hospice services require patients to be suffering from a terminal illness expected to result in death within six months. Not only were patients not in such circumstances, they were walking, driving, working and even coaching athletic sporting events in some instances. However, Mesquias, McInnis and others kept patients on services for multiple years in order to increase revenue.
Placing patients on such palliative hospice care meant they were unable to obtain medical coverage for curative medical services.
Mesquias also fired employees who refused to go along with the fraud. He often directed them not to “[expletive] with his patients or [expletive] with his money” by discharging patients from services. One co-conspirator said with respect to hospice patients “the way you make money is by keeping them alive as long as possible.” This included engaging in surgical and other medical interventions that were designed to extend life through the use of medical technologies, according to trial testimony.
The evidence further established Mesquias and McInnis obstructed justice by causing the creation of false and fictitious medical records. Further, they produced them to a federal grand jury in order to attempt to avoid indictment. The records added false diagnostic information, making it appear that patients were dying when, in fact, they were not.
Mesquias and McInnis also were convicted in connection with laundering the proceeds of the fraud. The jury found they used monies to purchase expensive vehicles such as a Porsche, expensive jewelry, luxury clothing from high-end retailers such as Louis Vuitton, exclusive real estate, season tickets for premium sporting events and a security detail and bottle service at high-end Las Vegas nightclubs. Mesquias and McInnis also treated physicians to lavish parties at these elite nightclubs, providing them with tens of thousands of dollars in alcohol and other perks in exchange for medically unnecessary patient referrals.
McInnis will be sentenced at a later date. Two other co-conspirators have pleaded guilty and are awaiting sentencing.
DHHS-OIG, FBI and Texas Health and Human Services Commission conducted the investigation. Assistant U.S. Attorney Andrew Swartz of the Southern District of Texas and Assistant Chief Jacob Foster and Trial Attorney Kevin Lowell of the Criminal Division’s Fraud Section re prosecuting the case.
The Fraud Section leads the Health Care Fraud Strike Force. Since its inception in March 2007, the Health Care Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, DHHS Centers for Medicare & Medicaid Services, working in conjunction with the DHHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Owner of Texas Chain of Hospice Companies Sentenced for $150 Million Health Care Fraud and Money Laundering SchemeRead the Press Release
A corporate executive has been ordered to serve 20 years in prison after his conviction related to falsely telling thousands of patients with long-term incurable diseases, such as Alzheimers and dementia, they had less than six months to live and subsequently enrolling them in hospice programs.
A federal jury in McAllen, Texas, convicted Rodney Mesquias, 48, of San Antonio, Texas. The one-month trial in November 2019 was one of the first criminal hospice fraud prosecutions the Department of Justice has presented to a federal jury.
Today, U.S. District Court Judge Rolanda Olvera ordered Mesquias to serve a total of 240 months in federal prison and to pay $120 million in restitution.
“Mesquias funded his lavish lifestyle by exploiting patients with long-term, incurable diseases by enrolling them in expensive but unnecessary hospice services,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “This significant sentence represents the department’s continued commitment to pursue those who orchestrate and commit healthcare fraud schemes.”
“Financial healthcare fraud is abhorrent enough, but to fraudulently diagnose patients with dementia or Alzheimer’s is the pinnacle of medical cruelness to both the patient and their family,” said U.S. Attorney Ryan K. Patrick of the Southern District of Texas. “They falsely gave patients life ending diagnosis and they will pay the price with years behinds bars.”
“Families seek to give comfort and support to their ailing loved ones when all other medical options are gone,” said Special Agent in Charge Christopher Combs of the FBI’s San Antonio Division. “It is unconscionable and evil to prey upon the most vulnerable in our community to commit fraud against government-funded programs. The FBI is committed to protecting our communities from those who may not have the strength to protect themselves.”
“Mesquias’ scheme included paying kickbacks to physicians and fraudulently enrolling vulnerable beneficiaries in hospice care that prevented them from accessing curative care – all done to steal millions of dollars from Medicare to fund lavish personal spending,” said Special Agent in Charge Miranda L. Bennett of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Region. “This victimization is intolerable, and our investigators and law enforcement partners will continue to work hard to bring such criminals to justice and to protect those relying on federal health care programs.”
Mesquias and his co-conspirator Henry McInnis, 48, were both convicted of one count each of conspiracy to commit health care fraud, conspiracy to commit money laundering and conspiracy to obstruct justice as well as six counts of health care fraud. Mesquias was separately convicted on one count of conspiracy to pay and receive kickbacks.
From 2009 to 2018, Mesquias orchestrated a scheme that involved $150 million in false and fraudulent claims for hospice and other health care services. Mesquias owned and controlled the Merida Group, a large health care company that operated dozens of locations throughout Texas.
According to evidence presented at trial, Mesquias and the Merida Group adopted a strategy to market their hospice programs as providing medical benefits “you don’t have to die to use.” They also aggressively enrolled patients with long-term incurable diseases, such as Alzheimers and dementia, and limited mental capacity who lived at group homes, nursing homes and in housing projects.
In some instances, Merida Group marketers falsely told patients they had less than six months to live and sent chaplains to lie to the patients. They also discussed last rites and preparation for their imminent death.
Hospice services require patients to be suffering from a terminal illness expected to result in death within six months. Not only were patients not in such circumstances, they were walking, driving, working and even coaching athletic sporting events in some instances. However, Mesquias and others kept patients on services for multiple years in order to increase revenue.
Placing patients on such palliative hospice care meant they were unable to obtain medical coverage for curative medical services.
Mesquias also fired employees who refused to go along with the fraud. He often directed them not to “[expletive] with his patients or [expletive] with his money” by discharging patients from services. One co-conspirator said with respect to hospice patients “the way you make money is by keeping them alive as long as possible.” This included engaging in surgical and other medical interventions that were designed to extend life through the use of medical technologies, according to trial testimony.
The evidence further established Mesquias obstructed justice by causing the creation of false and fictitious medical records. Further, Mesquias produced them to a federal grand jury in order to attempt to avoid indictment. The records added false diagnostic information, making it appear that patients were dying when, in fact, they were not.
Mesquias also was convicted in connection with laundering the proceeds of the fraud. The jury found they used monies to purchase expensive vehicles such as a Porsche, expensive jewelry, luxury clothing from high-end retailers such as Louis Vuitton, exclusive real estate, season tickets for premium sporting events and a security detail and bottle service at high-end Las Vegas nightclubs. Mesquias also treated physicians to lavish parties at these elite nightclubs, providing them with tens of thousands of dollars in alcohol and other perks in exchange for medically unnecessary patient referrals.
McInnis will be sentenced at a later date. Two other co-conspirators have pleaded guilty and are awaiting sentencing.
The Department of Health and Human Service – Office of Inspector General (DHHS-OIG); FBI and Texas Health and Human Services Commission conducted the investigation. Assistant Chief Jacob Foster and Trial Attorney Kevin Lowell of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Andrew Swartz of the Southern District of Texas are prosecuting the case.
The Fraud Section leads the Health Care Fraud Strike Force. Since its inception in March 2007, the Health Care Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, DHHS Centers for Medicare & Medicaid Services, working in conjunction with the DHHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Illegal alien brothers imprisoned for smuggling businessRead the Press Release
CORPUS CHRISTI, Texas – The third and final family member convicted in a large-scale alien smuggling operation has been ordered to federal prison, announced U.S. Attorney Ryan K. Patrick.
Mexican citizen Ricardo Salazar-Mendoza, 39, pleaded guilty Nov. 12, 2019.
Today U.S. District Judge David S. Morales sentenced to him to 84 months in federal prison. Not a U.S. citizen, he is expected to face removal proceedings following the sentence. At the hearing, the court noted the number of aliens involved in this conspiracy and that Salazar-Mendoza brandished a firearm and involuntarily detained an alien.
Between March 2019 and August 2019, Salazar-Mendoza and his two brothers - Juan Carlos Salazar Mendoza, 38, and Alejandro Salazar-Mendoza, 43 - operated an alien smuggling organization.
Juan Carlos received aliens who had crossed the border illegally, housed them and hired drivers to get them past the checkpoint. The aliens were hidden in dangerous places such as in motorhomes or secret compartments under vehicles.
Ricardo operated at least one stash house for the organization in which aliens were housed while the brothers awaited smuggling fees and made smuggling arrangements to get the aliens through the checkpoint. During the conspiracy, Ricardo brandished a firearm and involuntarily detained at least one alien.
In total, law enforcement discovered at least 64 aliens from various countries at the Sarita Border Patrol Checkpoint. At least one was an unaccompanied minor.
Alejandro and Juan Carlos were previously sentenced to 80 and 108 months, respectively.
They all have been and remain in custody.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation in conjunction with Customs and Border Protection. Assistant U.S. Attorney Joel Dunn prosecuted the case.
Walker County man faces child pornography and cyberstalking chargesRead the Press Release
HOUSTON – Authorities have arrested a 22-year-old Huntsville man for possessing and receiving child pornography as well as cyberstalking, announced U.S. Attorney Ryan K. Patrick.
Kody Nicholas Bohac is set to make his initial appearance before U.S. Magistrate Judge Frances Stacy Dec. 16 at 10 a.m.
The criminal complaint, filed yesterday under seal, alleges Bohac was involved in stalking a woman in another state over social media and threatening to post nude photographs of her on the internet if she did not contact him. The charges allege the images were posted on the internet after the woman did not respond to his threats.
According to the criminal complaint, law enforcement had executed a search warrant in connection with a related matter. At that time, they allegedly found images and videos of child pornography on his cell phone.
If convicted, Bohac faces up to 20 and five years in federal prison on the possession and receipt of child pornography charges, respectively. Federal cyberstalking carries a potential five-year prison sentence.
The FBI Houston Division - Bryan Resident Agency and FBI Philadelphia Division - State College Resident Agency conducted the investigation with the assistance of the Sam Houston State University Police Department.
Assistant U.S. Attorney Richard W. Bennett is prosecuting this 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.
A criminal complaint is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Two area home health agency owners charged in health care fraud and illegal kickback schemeRead the Press Release
HOUSTON - Two home health agency owners are set to appear in federal court on charges they fraudulently billed more than $10 million to Medicare, announced U.S. Attorney Ryan K. Patrick.
Authorities arrested Tataw Charlz Bisong and Angela Bisong, both 57 and from Stafford, today. They are expected to make their initial appearances before U.S. Magistrate Judge Frances H. Stacy at 2 p.m.
A federal grand jury in Houston returned the indictment under seal Dec. 9, which was unsealed today. It alleges the Bisongs co-owned SierCam Healthcare Services LLC. From 2012 through 2020, SierCam allegedly billed Medicare for home health services that were not medically necessary and often not provided as billed to Medicare. The charges allege the Bisongs paid SierCam patients to sign up for medically unnecessary home health services and provided free transportation and covered the copayments and other fees at doctor’s office visits to facilitate their health care fraud scheme. Additionally, the Bisongs created phony medical records to make it appear the services met Medicare’s criteria for reimbursement, according to the indictment.
Charlz and Angela Bisong are both charged with one count of conspiracy to commit health care fraud, six counts of health care fraud and one count of conspiracy to pay and receive health care kickbacks.
Conspiracy to commit health care fraud and each of the six counts of health care fraud carry a maximum sentence of 10 years in federal prison and a maximum $250,000 possible fine, upon conviction. If convicted of conspiracy to pay and receive health care kickbacks, they also face up to five years in federal prison and a possible $25,000 maximum fine.
The FBI, Department of Health and Human Services‐Office of Inspector General and Texas Attorney General’s Medicaid Fraud Control Unit conducted the investigation. The Stafford and Sugar Land Police Departments assisted in the arrests. Special Assistant U.S. Attorney Kathryn Olson 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.
Laredo woman facing criminal charges for attempting to smuggle ammunitionRead the Press Release
LAREDO, Texas – A federal grand jury has returned an indictment against a 40-year-old Laredo woman for attempting to smuggle goods from the United States, announced U.S. Attorney Ryan K. Patrick.
According to the complaint originally filed in the case, Zaira Coronel attempted to pass through the Lincoln-Juarez Port of Entry in Laredo on Nov. 18. However, authorities conducted a search and allegedly discovered five boxes of ammunition on the floor of her vehicle.
The boxes contained 5,000 rounds of 7.62x39 millimeter ammunition, according to the charges.
If convicted of attempting to smuggle goods from the United States, Coronel faces up to 10 years in federal prison and a maximum fine of up to $250,000.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of Customs and Border Protection. Assistant U.S. Attorney April Ayers-Perez 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.
Houston man indicted in Laredo for transporting 138 inside trailerRead the Press Release
LAREDO, Texas – A federal grand jury has returned an indictment against a 40-year-old Houston man on charges of conspiracy to transport 138 undocumented aliens, announced U.S. Attorney Ryan K. Patrick.
Joseph Earl Stovall is expected to appear for this arraignment before a U.S magistrate judge in Laredo in the near future.
The charges allege Stovall approached the Border Patrol Checkpoint in Freer driving a tractor trailer on Dec. 4. He was referred to secondary inspection, at which time authorities allegedly discovered a total of 138 individuals, including seven juveniles inside the trailer. All were from various countries including Mexico, Guatemala, El Salvador, Dominican Republic, Honduras, Nicaragua and Ecuador.
Law enforcement allegedly had to break the seal on the doors in order to open the trailer.
The complaint alleges Stovall was hired to drive the vehicle from Laredo to San Antonio via U.S. Highway 59.
If convicted, Stovall faces up to 10 years in prison as well as a possible $250,000 maximum fine.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with assistance from Border Patrol. Assistance U.S. Attorney Yoona Lim 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.
Canadian citizen indicted in Brownsville for sending powder-filled envelopes to local authoritiesRead the Press Release
BROWNSVILLE, Texas – A Brownsville federal grand jury has indicted a Canadian woman for prohibitions with respect to biological weapons and making threats via interstate commerce, announced U.S. Attorney Ryan K. Patrick along with Special Agent in Charge Christopher Combs of the FBI.
Pascale Cecile Veronique Ferrier aka Jane Ferrier, 53, is currently in custody in Washington, D.C., on separate, but similar charges. She is expected to make her initial appearance in Brownsville at a future date.
The grand jury returned the indictment yesterday charging Ferrier with eight counts each of prohibitions with respect to biological weapons and making threats via interstate commerce.
Between Sept. 14-21, Ferrier allegedly sent envelopes containing letters and a powdery substance to multiple local agencies. These included the El Valle Detention Facility, Hidalgo County Adult Detention Center, Brooks County Detention Center, Hidalgo County Sheriff’s Office, Brooks County Sheriff’s Office and Mission Police Department, according to the charges.
The substance sent is alleged to be Ricin.
If convicted, Ferrier faces up to life for the biological weapons charges, while threats via interstate commerce carries a potential five-year sentence. Both convictions also carry a maximum $250,000 possible fine.
The FBI conducted the investigation with the assistance of Immigration and Customs Enforcement’s – Office of Professional Responsibility; U.S. Postal Inspection Service; Bureau of Alcohol, Tobacco, Firearms and Explosives; police departments in Raymondville, Pharr and Mission; El Valle Detention Facility;
Fire departments in Harlingen and Brooks County; Hidalgo County Sheriff’s Office; Brooks County Detention Center; and Texas Department of State Health Services. Assistant U.S. Attorneys David A. Coronado, David A. Lindenmuth and Alamdar Hamdani 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.
15 named in $26 million international trade fraud schemeRead the Press Release
HOUSTON – A federal grand jury in Houston has returned a criminal indictment against eight individuals, while a related civil complaint has charged 14 individuals and one company relating to international trade fraud violations stemming from a decade-long scheme involving tires from China.
Law enforcement arrested Zheng “Miranda” Zhou, 53, of Missouri City, and Kun “Bruce” Liu, 40, of Sugar Land, yesterday. They made their initial appearances in Houston federal court today, at which time the criminal indictment was unsealed. Zhou will appear again tomorrow at 10 a.m. before U.S. Magistrate Judge Frances Stacy for a counsel determination hearing, and both are set for arraignment Friday at 10 a.m.
Also charged in the indictment are Qinghua “Shirley” Song, 44, of Jurupa Valley, California; and Chinese residents Yue “Joanna” Peng, 42, Li “Cathy” Chen, 38, Xin “Devin” Zhang, age unknown, Shaohui “Jasper” Jia, 40, and Deng “David” Yongqiang, 36. They are all considered fugitives and warrants remain outstanding for their arrests.
The Department of Justice’s Civil Division also filed a civil complaint Dec. 11 alleging trade fraud in the U.S. Court of International Trade. The complaint names the eight criminal defendants and six other individuals - Xiaozhen “Jenny” Zhang, 34, Di “Terry” Wang, 34, Liang “Leon” Yu, 49, Lin “Leo” Zhang, 37, Jinbing “David” Wang, 36, and Minglian “Bill” Li, 28 - as well as Houston area company Winland International Inc., dba Super Tire Inc. David Wang is a resident of New Jersey, while the remaining civil defendants reside in China.
“China and its industries want to rob, replicate and replace American made good and technology,” said U.S. Attorney Ryan K. Patrick. “Illegally importing and dumping these goods is one way to systemically weaken American competitors. Whether direct espionage by the Chinese government or trade fraud like in this case, we will continue to investigate and prosecute every case we can.”
“The Civil Division, through the Department of Justice’s Trade Fraud Task Force (TFTF), will continue to partner with U.S. law enforcement agencies and U.S. Attorneys’ Offices to aggressively investigate and pursue individuals and companies who attempt to evade U.S. customs laws and target the U.S. manufacturing base with unfair trade practices,” said Acting Assistant Attorney General Jeffery Bossert Clark. “We recognize the importance of ensuring that U.S. manufacturers are competing on a level playing field.”
The indictment and complaint allege the defendants conspired to avoid anti-dumping duties associated with off-the-road (OTR) and light vehicle and truck (LVT) tires from China. Working through and with Winland, individuals allegedly imported OTR and LVT tires from companies that were subject to anti-dumping duties associated with Chinese tire manufacturers who had engaged in unfair trade practices in the United States.
The complaint further alleges U.S.-based defendants conspired with defendants in China to obtain falsified invoices and entry records of Chinese tire companies that were subject to a lower duty rate than the actual manufacturers of these tires. Defendants submitted these falsified records to U.S. Customs officials when importing tires into the United States, so that Winland could avoid paying the higher duty rates, according to the allegations. The indictment and complaint also allege they used these falsified records to understate the value of these tires, further lowering the amount Winland owed in duties.
The value of these tires allegedly exceeded $20.9 million and resulted in the deprivation to the United States of more than $6.5 million in import duties.
“For more than a decade, Zhou and her co-conspirators are alleged to have sought to gain an unfair competitive advantage at the expense of U.S. companies and consumers through a series of schemes in violation of fair trade practices and U.S. import regulations,” said Special Agent in Charge Mark B. Dawson of Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) - Houston. “Working closely with our U.S. and foreign law enforcement partners, and in coordination with the National Intellectual Property Rights Coordination Center, we were able to uncover these alleged deceptive practices leading to the criminal indictment and imposition of almost $21 million in civil penalties.”
“Customs and Border Protection (CBP) takes its trade mission of protecting the U.S. economy very seriously as we strive to maintain fair trade and preserve American jobs from predatory practices,” said Director of Detroit Field Operations Christopher Perry. “These civil penalties and criminal indictments should serve as a warning to those who attempt to defraud our government and do harm to our economy and American businesses.”
The Houston Trade/Revenue Interdiction and Enforcement Team conducted the collaborative investigation along with CBP’s Automotive and Aerospace Center of Excellence and Expertise with the assistance of U.S. Citizenship and Immigration Services.
Assistant U.S. Attorneys Suzanne Emilady and Craig Feazel of the Southern District of Texas are prosecuting the criminal case, while William Kanellis of TFTF is handling the civil matter. TFTF is an inter-agency law enforcement task force with the primary mission of identifying, interdicting and prosecuting international trade fraud.
An indictment or complaint is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Texas man sentenced for trafficking methRead the Press Release
BROWNSVILLE, Texas – A 21-year-old resident of Houston has been ordered to prison following his conviction for attempting to import approximately 60.88 kilograms of meth, announced U.S. Attorney Ryan K. Patrick.
Hector Julian Valerio-Andrade pleaded guilty Dec. 3, 2019.
Today, U.S. District Judge Fernando Rodriguez handed Valerio a 140-month sentence to be immediately followed by five years of supervised release. At the hearing, the court noted Valerio had stated he was trafficking drugs in order to receive a $6,500 payment and that he had planned the offense for several weeks before he finally made the attempt.
On Oct. 6, 2019, Valerio entered the United States through the Brownsville and Matamoros (B&M) port of entry as the driver and sole occupant of a 2008 Ford Explorer. Authorities soon discovered approximately 60.88 kilograms of meth inside the vehicle’s tires.
Valerio admitted he knowingly imported the drugs into the United States from Mexico with the intent to deliver them to Dallas. He expected to be paid $6,500.
The drugs had an estimated street value of $1.32 million.
Valerio will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’ s Homeland Security Investigations and Customs and Border Protection conducted the investigation. Assistant U.S. Attorney Brian McDonald prosecuted the case.
Texas Clinic Owner and Clinic Employee Sentenced to Prison for Conspiring to Unlawfully Prescribe Hundreds of Thousands of OpioidsRead the Press Release
A Houston-area pain clinic owner and a clinic employee who posed as a physician were sentenced to 240 months and 96 months in prison, respectively, today for their roles at a “pill mill” where they and their co-conspirator illegally prescribed hundreds of thousands of doses of opioids and other controlled substances.
Acting Assistant Attorney General Brian C. Rabbit of the Justice Department’s Criminal Division, U.S. Attorney Ryan K. Patrick of the Southern District of Texas and Special Agent in Charge Steven S. Whipple of the Drug Enforcement Administration’s (DEA) Houston Division made the announcement.
Baker Niazi, 49, of Sugarland, Texas, and Muhammad Arif, 62, of Katy, Texas, were sentenced by U.S. District Judge Alfred H. Bennett of the Southern District of Texas. Judge Bennett ordered that Niazi pay a fine of $500,000, and also ordered that Niazi forfeit $493,000 and that Arif forfeit $11,423.11. Niazi pleaded guilty in April 2018 to one count of conspiracy to unlawfully distribute and dispense controlled substances, and Arif was convicted at trial in August 2019 of one count of conspiracy to unlawfully distribute and dispense controlled substances and three counts of unlawfully distributing and dispensing controlled substances.
According to the evidence presented at the trial of Arif, from September 2015 through February 2016, Niazi owned and operated Aster Medical Clinic in Rosenberg, Texas, which he operated as an illegal pill mill. Arif was an employee at Aster Medical Clinic who conspired with Niazi and a Dallas-based physician to unlawfully prescribe controlled substances to individuals posing as patients. The evidence showed that Niazi hired Arif, who was not licensed to practice medicine in the United States, to pose as a physician at Aster Medical Clinic, where he saw the clinic’s customers as if he were a physician, and wrote prescriptions for them on prescription pads that had often been pre-signed by the physician, Arif’s co-conspirator.
Through this scheme, Aster Medical Clinic dispensed prescriptions for over 200,000 dosage units of hydrocodone, a Schedule II controlled substance, and over 145,000 dosage units of carisoprodol, a Schedule IV controlled substance. The combination of hydrocodone and carisoprodol is a dangerous drug cocktail with no known medical benefit, the evidence showed.
Trial evidence showed that Aster Medical Clinic issued unlawful prescriptions for controlled substances to over 40 people on its busiest days. “Runners” brought numerous people to pose as patients at Aster Medical Clinic and paid for their visits in order to obtain prescriptions for controlled substances that the crew leaders then diverted onto the black market. Aster Medical Clinic charged approximately $250 for each patient visit, and required payment in cash, the evidence showed.
One other co-conspirator has pleaded guilty based on his role in the unlawful prescription scheme at Aster Medical Clinic and is currently awaiting sentencing before U.S. District Judge Alfred H. Bennett of the Southern District of Texas.
The case was investigated by the DEA, and was brought as part of the Health Care Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Texas. The case is being prosecuted by Assistant Deputy Chief Aleza Remis and Trial Attorney Alexis Gregorian of the Fraud Section.
The Fraud Section leads the Health Care Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Local man gets significant sentence for smuggling cocaine in car doorsRead the Press Release
McALLEN, Texas – A 55-year-old man from Palmview has been ordered to federal prison following his conviction of possession with intent to distribute approximately 28 kilograms of cocaine, announced U.S. Attorney Ryan Patrick.
Rodolfo Urive Jr. pleaded guilty June 18.
Today, U.S. District Judge Ricardo H. Hinojosa ordered Urive to serve a 120-month sentence to be immediately followed by five years of supervised of release.
Urive attempted to pass the Falfurrias Border Patrol Checkpoint on Oct. 20, 2019. Law enforcement conducted a primary inspection and, during a free air sniff, a K-9 alerted to the presence of narcotics in the vehicle. In addition, an X-Ray examination also showed anomalies within three of the four doors.
A subsequent search of the vehicle revealed 23 packages concealed within the natural voids of the two passenger and rear driver side doors. They had an approximate weight of 28 kilograms and all tested positive for cocaine.
The drugs had an approximate street value of $750,000.
Urive admitted he was transporting the narcotics in his truck.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the future.
The Drug Enforcement Administration conducted the investigation with assistance of Customs and Border Protection. Assistant U.S. Attorney M. Alexis Garcia prosecuted the case.
Health care company owner to pay $1 million to settle False Claims Act caseRead the Press Release
HOUSTON - The former owner of Providence Home Health and Providence Hospice has agreed to pay $1.05 million to settle claims she knowingly and willfully paid improper kickbacks for referrals of Medicare patients to her businesses, announced U.S. Attorney Ryan K. Patrick along with Special Agent in Charge Miranda Bennett of the Department of Health and Human Services - Office of Inspector General (DHHS-OIG).
Teresita Lumanas Alquero owned both entities at the time of the alleged violations but has since sold them.
“We cannot tolerate kickbacks, especially those designed to affect our most vulnerable beneficiaries,” said Bennett. “We will continue to vigilantly investigate such conduct to ensure patients receive care from providers without improper motivations.”
Alquero had employed two individuals who filed a whistleblower lawsuit in June 2017 alleging various instances of fraud. Alquero allegedly paid kickbacks to a medical director for Providence. The medical directorship payments exceeded fair market value and were paid over a two-year period to induce him to refer Medicare patients to Providence for home health care and hospice services.
Medicare rules and guidelines prohibit such payments for referrals.
Alquero also allegedly submitted false claims for payment to Medicare identifying a specific attending physician from April 1, 2016, through Sept. 30, 2016. That physician was actually incarcerated during that time. His medical license was suspended April 12, 2016.
Under the False Claims Act, a private party can file an action known as a qui tam on behalf of the United States and receive a portion of the recovery. In this case, the relators will share $168,000 as a result of the settlement.
As part of the settlement, Alquero also agreed to a five-year period of exclusion from participation from Medicare, Medicaid and all other federal health care programs.
DHHS-OIG conducted the investigation along with the U.S. Attorney’s Office. Assistant U.S. Attorney Jill Venezia handled the matter.
The claims resolved by this agreement are allegations only, and there has been no determination of liability.
Former correctional officer heads to prison for briberyRead the Press Release
McALLEN, Texas - A 33-year-old man from Progreso has been ordered to prison for smuggling contraband items into the East Hidalgo Detention Center, announced U.S. Attorney Ryan K. Patrick.
Jhaziel Loredo pleaded guilty March 4.
Today, District Judge Micaela Alvarez sentenced Loredo to 28 months in federal prison to be immediately followed by three years of supervised release.
From October 2018 to August 2019, Loredo used his official position as a correctional officer at the East Hidalgo Detention Center to bring contraband into the facility. Some of the items included controlled substances. He then distributed them to federal inmates.
In exchange, Loredo accepted bribe payments from family members of the multiple inmates totaling approximately $1,900.
Loredo 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 U.S. Marshals Service, Department of Justice - Office of Inspector General, and FBI conducted the investigation. Assistant U.S. Attorneys Amy L. Greenbaum and Patricia Cook Profit prosecuted the case.
Stash house operator who conducted “heat runs” convicted for drug schemeRead the Press Release
McALLEN, Texas – A 35-year-old Mexican national has admitted to possessing with intent to distribute over 40 kilograms of cocaine, announced U.S. Attorney Ryan K. Patrick.
On March 17, authorities conducted surveillance on what they suspected to be a drug stash house in McAllen. There, they observed Hugo Cristobal Garza-Ornelas departing the location in a possible load vehicle.
Later, they witnessed Ornelas conducting “heat runs,” which are unpredictable routes meant to evade law enforcement, and began pursuit. He attempted to flee from his vehicle on foot, but authorities quickly apprehended him.
A search of the abandoned load vehicle led to the discovery of approximately 14.68 kilograms of cocaine. Law enforcement also searched the stash house Garza-Ornelas operated and seized another 26.74 kilograms of cocaine as well as a rifle and ammunition.
The drugs had an estimated street value of $1.025 million.
U.S. District Judge Ricardo Hinojosa will impose sentencing Feb. 21, 2021. At that time, Garza-Ornelas faces a minimum of 10 years and up to life in federal prison and a possible $10 million maximum fine. He has been and will remain in custody pending that hearing.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Matthew Redavid is prosecuting the case.
Project Python defendant gets 10 years in prisonRead the Press Release
LAREDO, Texas – A 28-year-old resident of Nuevo Laredo, Tamaulipas, Mexico, has been sentenced to a long prison term for conspiracy to possess with the intent to distribute meth, announced U.S. Attorney Ryan K. Patrick.
Gerardo Cervantes-Valenzuela pleaded guilty July 8.
Today, U.S. District Judge Marina Garcia Marmolejo ordered him to serve 120 months in federal prison. Not a U.S. citizen, he is expected to face deportation proceedings following his release. In handing down the sentence, the court noted Cervantes-Valenzuela’s prior federal conviction for drug trafficking.
On June 7, 2018, Cervantes-Valenzuela provided an informant with two drug-laden fire extinguishers. Law enforcement obtained the items and conducted an undercover operation which led to additional arrests and convictions of co-conspirators in Georgia.
The combined weight of the drugs from the two extinguishers was over 4.8 kilos of 99.73% pure meth.
The Drug Enforcement Administration (DEA) conducted the Organized Crime and Drug Task (OCDETF) operation known as Gelo Podre as part of Project Python – a nationwide operation targeting the Cártel de Jalisco Nueva Generación. It has resulted in more than 600 arrests, 350 indictments and significant seizures of money and drugs across the United States.
Laredo DEA led this investigation with the assistance of the Laredo Police Department; Henry County, Georgia, Police Department; Flint, Georgia, Circuit Drug Enforcement Task Force; Georgia Bureau of Investigation and Georgia State Troopers. Assistant U.S. Attorney Anthony J. Evans prosecuted the case.
Laredo smuggler sentenced after conspiring to import nearly $2M in drugsRead the Press Release
LAREDO, Texas – A 59-year-old man from Laredo has been ordered to federal prison following his conviction for conspiring with others to import approximately 4.1 kilograms of heroin and 34.3 kilograms of cocaine from Mexico, announced U.S. Attorney Ryan K. Patrick.
Leonardo Rubio pleaded guilty July 8.
Today, U.S. District Judge Marina Garcia Marmolejo ordered Rubio to serve a 72-month sentence to be immediately followed by four years of supervised release. In handing down the sentence, Judge Marmolejo noted Rubio’s prior drug convictions as well as the serious nature and amount of narcotics he attempted to smuggle in this case.
Rubio attempted to cross the border at the Juarez-Lincoln Bridge in Laredo on Jan. 24. At that time, law enforcement conducted an inspection of the interior of Rubio’s car and found a total of 33 packages concealed within the back wall and back seat of the vehicle.
Thirty of the packages had an approximate weight of 34 kilograms and field tested positive for cocaine, while the remaining three totaled over four kilograms and tested positive for heroin.
The drugs had an approximate street value of $1.19 million.
Rubio admitted he was importing and transporting the narcotics inside his vehicle.
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.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with assistance of Customs and Border Protection. Assistant U.S. Attorney Yoona Lim prosecuted the case.
4 men head to prison for 31-kilogram cocaine conspiracyRead the Press Release
LAREDO, Texas – Three Mexican men and a U.S. citizen have been sentenced for their part in a conspiracy to possess with intent to deliver a large amount of cocaine, announced U.S. Attorney Ryan K. Patrick.
Aaron Hervey Esparza Villarreal, 27, of Monterrey, Nuevo Leon, Mexico, pleaded guilty Aug. 4, admitting he was part of a conspiracy that involved smuggling cocaine hidden in a semi-truck. Mexican citizens Jose Contreras Rodriguez, 58, and Ernesto Yadir Martinez Campos, 39, pleaded guilty July 8, along with Viviano Hernandez, 41, a U.S. citizen who was residing in Mexico.
Today, U.S. District Judge Marina Garcia Marmolejo handed Hernandez a 36-month term of imprisonment. Villarreal, Campos and Rodriguez were previously sentenced to 87, 60, and 48 months, respectively. Not U.S. citizens, Villarreal, Rodriguez and Campos are expected to face removal proceedings following their sentences.
“Smuggling illegal controlled substances poses a serious risk to public health and safety in our communities,” said Special Agent in Charge Shane Folden of Immigration and Customs Enforcement’s Homeland Security Investigations (HSI). “HSI will continue to work aggressively with our law enforcement partners to target drug smuggling organizations that make money by bringing dangerous drugs into our neighborhoods.”
On Jan. 17, law enforcement observed two men, later identified as Rodriguez and Hernandez, working on the vehicle. They then got into a sedan, left the area and met up with an SUV. At that time, Hernandez handed over trash bags to Villarreal in the SUV.
Authorities attempted to stop the SUV, but Villarreal led them on a high-speed pursuit before crashing into the Evelyn Motel on San Bernardo Avenue. Inside the vehicle was 31 kilograms of cocaine in the trash bags.
Law enforcement also apprehended Hernandez and Rodriguez as they attempted to enter Mexico. Campos was the driver of the semi and brought the drugs into the United States from Mexico. He was also taken into custody.
Villarreal will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney David Fawcett prosecuted the case.
2 men plead guilty after K-9 uncovers illegal aliens in 100+ degree trailerRead the Press Release
LAREDO, Texas – A Laredoan and a South Carolina man have both admitted guilt after a smuggling attempt leads to a stash house, announced U.S. Attorney Ryan K. Patrick.
Eloy Martinez-Carranza, 35, of Ridgeland, South Carolina, pleaded guilty today while Jose Maria Ramirez, 28, Laredo, entered his plea Nov. 24. Both admitted to conspiring to transport illegal aliens.
Martinez-Carranza approached the US-83 Border Patrol (BP) checkpoint driving a semi-truck and trailer Oct. 1. Soon after his arrival, a BP K-9 alerted to the presence of contraband in the trailer.
Authorities cut the seal on the trailer and found 40 illegal aliens, including three unaccompanied minors. The inside temperature was approximately 109 degrees. Law enforcement also observed coffee grounds scattered around the trailer.
Martinez-Carranza claimed he was traveling to Laredo from South Carolina to work as a trucker. However, he did not have a commercial driver’s license or any training as a truck driver.
Upon further investigation, authorities identified a location suspected to be the stash house for the illegal aliens. Law enforcement conducted surveillance and stopped a vehicle leaving the house. Ramirez was driver of that vehicle.
Law enforcement searched the home and found a total of 22 illegal aliens, including more unaccompanied minors.
U.S. District Judge Marina Garcia Marmolejo accepted their pleas and set sentencing for March 24. At that time, both men face up to 10 years in prison and a possible $250,000 maximum fine.
Martinez-Carranza and Ramirez have been and will remain in custody pending their sentencing.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of Customs and Border Protection. Assistant U.S. Attorney Paul Harrison is prosecuting the case.
One arrested after 2 dozen illegal aliens found in SW HoustonRead the Press Release
HOUSTON – A 36-year-old Honduran national who was illegally residing in Houston has been charged with harboring 29 individuals, announced U.S. Attorney Ryan K. Patrick.
Immigration authorities arrested Mauro Dominguez-Maldonado late Thursday, Dec. 3. He is expected to make his initial appearance Monday, Dec. 7, before U.S. Magistrate Judge Frances Stacy.
The criminal complaint, filed in federal court just moments ago, alleges Dominguez-Maldonado was in charge of watching over the aliens and performing multiple tasks in furtherance of a human smuggling operation.
According to the allegations, one of the illegal aliens had fled the Southwest Houston residence and contacted authorities. Law enforcement responded and approached the location, at which time they observed a vehicle attempting to leave, but quickly return to the house. One individual exited and allegedly went inside the residence.
Ultimately, authorities found Dominguez-Maldonado and 29 others - 28 males and one female, according to the complaint. All are allegedly from the countries of Mexico, Honduras, Guatemala, El Salvador and Cuba.
The charges further allege the residence had boarded-up windows and deadbolt locks on the inside doors.
If convicted, Dominguez-Maldonado faces up to 10 years in federal prison and a possible $250,000 maximum fine.
Immigration and Customs Enforcement’s Homeland Security Investigations and Houston Police Department conducted the investigation. Assistant U.S. Attorney Richard Bennett 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.
Florida man admits to exporting firearms, ammunition and explosive materials through McAllenRead the Press Release
McALLEN, Texas – A 44-year-old man has entered a guilty plea to aiding and abetting the export of defense articles from the United States, announced U.S. Attorney Ryan K. Patrick
Brett McGinnis, of Ormond Beach, Florida, admitted he mailed ammunition, firearms and firearms parts, or caused them to be mailed, to co-conspirators in McAllen who then would export them into Mexico.
From on or about May 12 through Sept. 13, 2018, law enforcement seized over 6,000 rounds of various caliber ammunition, 1,100 saw links (5.56mm), 35 firearm magazines, three firearms, multiple upper and lower receivers and other firearms accessories that were intended to be illegally exported to Mexico. McGinnis had attempted to provide some to co-conspirators. Each of these items were designated defense articles requiring a license to export into Mexico.
McGinnis also admitted to shipping 60 practice M781 grenade cartridges (40mm) and firearms prior to May 2018 that were intended to be exported into Mexico. M781 practice rounds are considered explosive materials requiring a federal explosives license to transport.
McGinnis did not possess such a license to transport explosives or to export defense articles.
U.S. District Judge Micaela Alvarez accepted the plea and has set sentencing for Feb. 12, 2021.At that time, McGinnis will face up to 10 years in prison and a possible $250,000 maximum fine.
McGinnis was permitted to remain on bond pending sentencing.
Immigration and Customs Enforcement’s Homeland Security Investigations and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney Roberto Lopez Jr. is prosecuting the case.
Local man faces prison for illegally pointing laser at helicopterRead the Press Release
McALLEN – A 42-year-old man from Edcouch has pleaded guilty to aiming a laser pointer at an aircraft, announced U.S. Attorney Ryan K. Patrick.
Luz Fernando Solis admitted that on May 3, he knowingly aimed the beam of a laser pointer at a Texas Department of Public Safety (DPS) helicopter.
The aircraft was providing assistance to local law enforcement when a laser beam struck the DPS helicopter twice. Authorities observed an individual, later identified as Solis, at the location where the laser beams originated.
They conducted a search of his residence and found the laser pointer.
Lasers have a dangerous effect on pilots when the beams of light strike an aircraft. The light can temporarily blind them. A laser, when aimed at an aircraft, can create a visual distraction or cause discomfort or even damage to a pilot’s eyes.
U.S. District Judge Micaela Alvarez will impose sentencing on Feb. 11, 2021. At that time, Solis faces up to five years in federal prison and a possible $250,000 maximum fine.
Solis was permitted to remain on bond pending sentencing.
The FBI and DPS conducted the investigation. Assistant U.S. Attorney Frances Blake Land is prosecuting the case.
Drug trafficker sent to prison for shipping cocaine via mailRead the Press Release
CORPUS CHRISTI, Texas – A 41-year-old resident of Edinburg has been sentenced for his role in a drug conspiracy involving the federal mail system, announced U.S. Attorney Ryan K. Patrick.
Axel Noel Rodriguez Rivera pleaded guilty July 23.
Today, U.S. District Judge David S. Morales ordered Rivera to serve a 120-month sentence to be immediately followed by five years of supervised release. At the hearing, the court heard information detailing how Rivera used multiple mail center mailboxes to receive cocaine through the mail. In handing down the sentence, Judge Morales noted Rivera’s prior felony drug convictions.
“Illegal drugs have no business being a part of the mail stream,” said Inspector in Charge Adrian Gonzalez of the U.S. Postal Inspection Service.“Postal inspectors work tirelessly to rid the mail of illicit and dangerous drugs and provide a safe environment for postal employees and Postal Service customers. Today’s sentencing demonstrates that postal inspectors will never tolerate the use of the U.S. Mail to distribute illegal substances. We thank the members of the Hidalgo County Criminal District Attorney’s High Intensity Drug Trafficking Area (HIDTA) Task Force task force for partnering with us to bring this criminal to justice.”
In January, law enforcement in McAllen began an investigation into a suspicious parcel which was later found to contain cocaine.
The investigation revealed Rivera had retrieved multiple parcels from mail centers within the Corpus Christi area. The packages were either sent through third-party shippers or the U.S. Postal Service. Each of the parcels contained cocaine.
Rivera was ultimately held accountable for approximately 10 kilograms of cocaine which had an estimated street value of $250,000.
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 U.S. Postal Inspector Service and the Hidalgo County Criminal District Attorney’s High Intensity Drug Trafficking Area Task Force conducted the investigation. Assistant U.S. Attorney Reid Manning is prosecuting the case.
Accused smuggler faces criminal charges after deadly car crashRead the Press Release
LAREDO, Texas – A federal grand jury has returned a four-count indictment charging a 27-year-old Laredoan for conspiring to transport an undocumented alien resulting in death, announced U.S. Attorney Ryan K. Patrick.
David Valadaz is expected to appear for his arraignment before a U.S. magistrate judge next week.
The criminal complaint originally filed in the case alleges that on Nov. 5, law enforcement attempted to stop a Chevrolet Malibu for a traffic violation. Valadaz was allegedly driving.
Instead of complying, he fled at a high rate of speed, according to the charges. Authorities pursued him until he allegedly crashed the vehicle through a fence of a local business. According to the charges, Valadaz attempted to abscond on foot but was quickly apprehended.
The indictment further alleges authorities conducted a search of the vehicle and discovered three people who were all determined to be aliens illegally present in the United States. One allegedly died as a result of injuries sustained during the crash.
He is charged with conspiracy to transport an undocumented alien causing death and three counts of transporting an undocumented alien causing death.
If convicted, he faces up to life in prison as well as a possible $250,000 maximum fine.
Immigration and Custom Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of Texas Department of Public Safety. Assistant U.S. Attorney April Ayers-Perez 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.
Young man sent to prison for making bomb threats on TwitterRead the Press Release
BROWNSVILLE, Texas - A 19-year-old resident of Harlingen has been ordered to federal prison after he claimed he was being “edgy” when threatening to destroy the Federal Reserve, announced U.S. Attorney Ryan K. Patrick.
Joel Hayden Schrimsher pleaded guilty Aug. 24 to conveying false or misleading information through the internet concerning the potential destruction of a federal building.
Today, U.S. District Judge Fernando Rodriguez handed Schrimsher a 24-month sentence to be immediately followed by two years of supervised release.
At the hearing, the court found sufficient evidence in support of Schrimsher’s intent and that he disrupted public, governmental or business functions. Judge Rodriguez also noted Schrimsher had precursor chemicals and bomb making recipes in his bedroom at the time he made the threats. In handing down the sentence, the court noted that he considered this a very serious crime.
“The FBI and our law enforcement partners take threats of violence very seriously,” stated FBI Special Agent in Charge Christopher Combs. “While law enforcement is committed to investigating these threats, members of the public play a critical role in helping law enforcement protect our community from violence by reporting online threats.”
“Working with our law enforcement partners to prevent violence before innocent citizens are hurt or killed remains at the core of the Bureau of Alcohol, Tobacco , Firearms and Explosives (ATF) mission,” said Special Agent in Charge Fred Milanowski.
On June 6, 2019, authorities learned of an online threat made via Twitter from the username @HaydenJool displayed as @Hayden Ter(rawr)ist. They quickly identified Schrimsher as the source. The investigation also revealed a post on his account relaying a family conversation which ended with “Me: I’m gonna mail a bomb to the Federal Reserve.”
Law enforcement executed a search warrant for Schrimsher’s home in Harlingen on June 6, 2019. At that time, they discovered physical and documentary evidence in his room consistent with the message he sent about the Federal Reserve building. After Schrimsher’s arrest, authorities also found a photo in his cellphone of a fake certificate declaring him as “Most Likely to Damage Federal Property.”
Schrimsher admitted to having the account @HaydenJool and name Hayden Ter(rawr)ist as well as making a tweet about bombing and damaging a Federal Reserve building. He claimed he was being “edgy” when he made the threats.
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, Cameron County District Attorney’s Office, police departments in Harlingen and Brownsville the ATF conducted the investigation. Assistant U.S. Attorneys Jody Young and Oscar Ponce prosecuted the case.
South Texas woman heads to prison for imported large amount of hidden methRead the Press Release
McALLEN, Texas – A 29-year-old resident of Rio Grande City has been ordered to federal prison following her conviction of importing 59 kilograms of meth, announced U.S. Attorney Ryan K. Patrick.
Alma Rosa Salinas pleaded guilty Oct. 24, 2019.
Today, U.S. District Judge Randy Crane ordered Salinas to serve 63 months in prison to be immediately followed by three years of supervised release.
“As a consequence of her drug trafficking activities, Salinas will spend the next five years in federal prison,” said Special Agent in Charge Shane Folden of Immigration and Customs Enforcement’s Homeland Security Investigations (HSI). “HSI will continue to ensure that individuals involved in illegal drug smuggling operations are held accountable.”
On Aug. 7, 2019, Salinas attempted entry into the United States at the Los Ebanos Port of Entry driving a Ford F-150. She was referred to secondary inspection where a K-9 had alerted to the presence of concealed narcotics.
Authorities directed the driver to the secondary inspection area where they ultimately found liquid meth hidden in the vehicle’s gas tank weighing approximately 59 kilograms.
At the time of her plea, she admitted she knew there were narcotics in her vehicle and expected to be paid money for transporting them.
Salinas will be in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
HSI conducted the investigation. Assistant U.S. Attorney Frances Blake Land prosecuted the case.
Owner and operator of India-based call centers sentenced for scamming U.S. victims out of millionsRead the Press Release
HOUSTON - An Indian national was sentenced to 20 years in prison for his role in operating and funding India-based call centers that defrauded U.S. victims out of millions of dollars between 2013 and 2016.
U.S. District Judge David Hittner sentenced Hitesh Madhubhai Patel aka Hitesh Hinglaj, 44, of Ahmedabad, India, for wire fraud conspiracy and general conspiracy to commit identification fraud, access device fraud, money laundering and impersonation of a federal officer or employee. Patel was also ordered to pay restitution of $8,970,396 to identified victims of his crimes.
“The long arm of federal law enforcement was key to bringing this con artist to justice,” said U.S. Attorney Ryan K. Patrick of the Southern District of Texas. “Transnational call center scams are complex cases to investigate and prosecute but our agencies are up to the task. Many of these fraudsters prey on the most vulnerable from the perceived safety of foreign lands so there is no sorry in seeing him head to prison. His access to a phone is now greatly diminished. Across the globe, U.S. law enforcement is chasing and dismantling these schemes.”
“The defendant defrauded vulnerable U.S. victims out of tens of millions of dollars by spearheading a conspiracy whose members boldly impersonated federal government officials and preyed on victims’ fears of adverse government action,” said Acting Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “Today’s sentence demonstrates the department’s commitment to prosecuting high-level perpetrators of such nefarious schemes. Even fraudsters operating scams from beyond our borders are not beyond the reach of the U.S. judicial system.”
According to admissions in his plea agreement, Patel and his co-conspirators perpetrated a complex scheme in which employees from call centers in Ahmedabad, India, impersonated officials from the IRS and U.S. Citizenship and Immigration Services (USCIS) and engaged in other telephone call scams designed to defraud victims throughout the United States. U.S. victims were threatened with arrest, imprisonment, fines or deportation if they did not pay alleged monies owed to the government. Those who fell victim were instructed how to provide payment, including by purchasing general purpose reloadable (GPR) cards or wiring money. Upon payment, the call centers would immediately turn to a network of “runners” based in the United States to liquidate and launder the fraudulently obtained funds.
In his plea, Patel admitted to operating and funding several India-based call centers from which the fraud schemes were perpetrated, including the call center HGLOBAL. Patel corresponded by email and WhatsApp messaging frequently with his co-defendants to exchange credit card numbers, telephone scam scripts and call center operations instructions. The scripts included IRS impersonation, USCIS impersonation, Canada Revenue Agency impersonation, Australian Tax Office impersonation, payday loan fraud, U.S. Government grant fraud and debt collection fraud.
A co-defendant described Patel as “the top person in India and the boss for whom most of the other defendants worked,” and the owner of multiple call centers. Another stated Patel was arrested in India in 2016, but then paid a bribe and was released. Additionally, Patel admitted that a reasonably foreseeable loss of more than $25 million but less than $65 million was attributable to him, based on the government’s evidence against him.
Patel was prosecuted in the United States after being extradited from Singapore in April 2019 to face charges in this large-scale telefraud and money laundering scheme. Singapore authorities apprehended Patel at the request of the United States pursuant to a provisional arrest warrant in September 2018 after Patel flew there from India.
“For years, this individual preyed on the fears of his victims to perpetuate a global scheme to manipulate U.S. institutions and taxpayers,” said Special Agent in Charge Mark B. Dawson of Immigration and Customs Enforcement’s Homeland Security Investigations (HSI). “Working with our law enforcement partners around the globe we have successfully executed the first ever large-scale, multi-jurisdictional investigation and prosecution targeting the India call center scam industry to hold him accountable for his illegal acts and deter similar scams in the future.”
“Since 2013, American taxpayers have been subjected to unprecedented attempts to fraudulently obtain money by individuals utilizing Indian call centers to impersonate IRS employees and scam American taxpayers,” said J. Russell George, the Treasury Inspector General for Tax Administration (TIGTA). “We appreciate the support of our law enforcement partners.”
“The sentence imposed today provides a clear deterrent to those who would seek to enrich themselves by extorting the most vulnerable in our society through these types of scams,” said Special Agent in Charge David Green of the Department of Homeland Security Office of Inspector General (DHS-OIG). “These foreign call center operators and their U.S. based affiliates should know that their actions carry real life consequences, both for their victims and for themselves, and that there are dedicated agents and prosecutors who will work tirelessly to identify them, find them and hold them accountable for their crimes.”
The indictment in this case, which was unsealed in October 2016, charged Patel and 60 other individuals and entities with general conspiracy, wire fraud conspiracy and money laundering conspiracy. A total of 24 domestic defendants associated with this transnational criminal scheme were previously convicted and sentenced to terms of imprisonment of up to 20 years in the Southern District of Texas, District of Arizona and Northern District of Georgia. The defendants were also ordered to pay millions of dollars in victim restitution and money judgments and to forfeit seized assets. Some defendants were ordered to be removed based on their illegal immigration status, with another defendant having his U.S. citizenship revoked due to a separate conviction for immigration fraud. Charges remain pending for other India-based defendants. They are presumed innocent unless and until convicted through due process of law.
HSI, DHS-OIG and TIGTA led the investigation of this case. The Justice Department’s Office of International Affairs and HSI Singapore provided significant support in securing and coordinating Patel’s arrest and extradition, working in concert with their counterparts at the Singapore Attorney General’s-Chambers and the Singapore Police Force.
Also providing significant support during the course of the investigation and prosecutions related to this scheme were the Ft. Bend County Sheriff’s Office; police departments in Hoffman Estates and Naperville, Illinois, and Leonia, New Jersey; San Diego County District Attorney’s Office Family Protection/Elder Abuse Unit; Secret Service; Small Business Administration - Office of Inspector General; IOC-2; INTERPOL Washington; USCIS; State Department’s Diplomatic Security Service; and the U.S. Attorney’s Offices of the Northern District of Alabama, District of Arizona, Central and Northern Districts of California, District of Colorado, Northern and Middle Districts of Florida, Northern District of Georgia, Northern District of Illinois, Northern District of Indiana, Eastern District of Louisiana, District of Nevada and the District of New Jersey. The Federal Communications Commission’s Enforcement Bureau provided assistance in TIGTA’s investigation. Additionally, the Executive Office for U.S. Attorneys, Legal and Victim Programs provided significant support to the prosecution.
Assistant U.S. Attorneys Mark McIntyre and Craig Feazel of the Southern District of Texas prosecuted the case along with Trial Attorney Mona Sahaf of the Criminal Division’s Human Rights and Special Prosecutions Section (HRSP), former Trial Attorney Amanda S. Wick of the Criminal Division’s Money Laundering and Asset Recovery Section. Kaitlin Gonzalez of HRSP was the paralegal for this case.
Anyone who believes they may be a victim of fraud or identity theft in relation to this investigation or other telefraud scam phone calls may contact the FTC via this website.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years
Owner and Operator of India-Based Call Centers Sentenced to Prison for Scamming U.S. Victims out of Millions of DollarsRead the Press Release
An Indian national was sentenced today to 20 years in prison followed by three years of supervised release in the Southern District of Texas for his role in operating and funding India-based call centers that defrauded U.S. victims out of millions of dollars between 2013 and 2016.
Hitesh Madhubhai Patel, aka Hitesh Hinglaj, 44, of Ahmedabad, India, was sentenced by U.S. District Judge David Hittner for the charges of wire fraud conspiracy and general conspiracy to commit identification fraud, access device fraud, money laundering, and impersonation of a federal officer or employee. Patel was also ordered to pay restitution of $8, 970,396 to identified victims of his crimes.
“The defendant defrauded vulnerable U.S. victims out of tens of millions of dollars by spearheading a conspiracy whose members boldly impersonated federal government officials and preyed on victims’ fears of adverse government action,” said Acting Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “Today’s sentence demonstrates the department’s commitment to prosecuting high-level perpetrators of such nefarious schemes. Even fraudsters operating scams from beyond our borders are not beyond the reach of the U.S. judicial system.”
“The long arm of federal law enforcement was key to bringing this con artist to justice,” said U.S. Attorney Ryan K. Patrick of the Southern District of Texas. “Transnational call center scams are complex cases to investigate and prosecute but our agencies are up to the task. Many of these fraudsters prey on the most vulnerable from the perceived safety of foreign lands so there is no sorry in seeing him head to prison. His access to a phone is now greatly diminished. Across the globe, U.S. law enforcement is chasing and dismantling these schemes.”
“For years, this individual preyed on the fears of his victims to perpetuate a global scheme to manipulate U.S. institutions and taxpayers,” said Special Agent in Charge Mark B. Dawson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Houston. “Working with our law enforcement partners around the globe we have successfully executed the first ever large-scale, multi-jurisdictional investigation and prosecution targeting the India call center scam industry to hold him accountable for his illegal acts and deter similar scams in the future.”
“Since 2013, American taxpayers have been subjected to unprecedented attempts to fraudulently obtain money by individuals utilizing Indian call centers to impersonate IRS employees and scam American taxpayers,” said J. Russell George, the Treasury Inspector General for Tax Administration (TIGTA). “We appreciate the support of our law enforcement partners.”
“The sentence imposed today provides a clear deterrent to those who would seek to enrich themselves by extorting the most vulnerable in our society through these types of scams,” said Special Agent in Charge David Green of the Department of Homeland Security Office of Inspector General (DHS-OIG). “These foreign call center operators and their U.S. based affiliates should know that their actions carry real life consequences, both for their victims and for themselves, and that there are dedicated agents and prosecutors who will work tirelessly to identify them, find them and hold them accountable for their crimes.”
According to admissions in his plea agreement, Patel and his co-conspirators perpetrated a complex scheme in which employees from call centers in Ahmedabad, India, impersonated officials from the IRS and U.S. Citizenship and Immigration Services (USCIS), and engaged in other telephone call scams designed to defraud victims throughout the United States. U.S. victims were threatened with arrest, imprisonment, fines or deportation if they did not pay alleged monies owed to the government. Those who fell victim were instructed how to provide payment, including by purchasing general purpose reloadable (GPR) cards or wiring money. Upon payment, the call centers would immediately turn to a network of “runners” based in the United States to liquidate and launder the fraudulently obtained funds.
In his plea, Patel admitted to operating and funding several India-based call centers from which the fraud schemes were perpetrated, including the call center HGLOBAL. Patel corresponded by email and WhatsApp messaging frequently with his co-defendants to exchange credit card numbers, telephone scam scripts, and call center operations instructions. The scripts included IRS impersonation, USCIS impersonation, Canada Revenue Agency impersonation, Australian Tax Office impersonation, payday loan fraud, U.S. Government grant fraud, and debt collection fraud.
A co-defendant described Patel as “the top person in India and the boss for whom most of the other defendants worked,” and the owner of multiple call centers. Another co-defendant stated that Patel was arrested in India in 2016, but then paid a bribe and was released. Additionally, Patel admitted that a reasonably foreseeable loss of more than $25 million but less than $65 million was attributable to him, based on the government’s evidence against him.
Patel was prosecuted in the United States after being extradited from Singapore in April 2019 to face charges in this large-scale telefraud and money laundering scheme. Singapore authorities apprehended Patel at the request of the United States pursuant to a provisional arrest warrant in September 2018, after Patel flew there from India.
The indictment in this case, which was unsealed in October 2016, charged Patel and 60 other individuals and entities with general conspiracy, wire fraud conspiracy and money laundering conspiracy. A total of 24 domestic defendants associated with this transnational criminal scheme were previously convicted and sentenced to terms of imprisonment of up to 20 years in the Southern District of Texas, District of Arizona and Northern District of Georgia. The defendants were also ordered to pay millions of dollars in victim restitution and money judgments and to forfeit seized assets. Some defendants were ordered to be deported based on their illegal immigration status, with another defendant having his U.S. citizenship revoked due to a separate conviction for immigration fraud. Charges remain pending for other India-based defendants. They are presumed innocent unless and until convicted through due process of law.
HSI, DHS-OIG and TIGTA led the investigation of this case. The Justice Department’s Office of International Affairs and HSI Singapore provided significant support in securing and coordinating Patel’s arrest and extradition, working in concert with their counterparts at the Singapore Attorney General’s-Chambers and the Singapore Police Force.
Also providing significant support during the course of the investigation and prosecutions related to this scheme were: the Ft. Bend, Texas, County Sheriff’s Department; the Hoffman Estates, Illinois, Police Department; the Leonia, New Jersey, Police Department; the Naperville, Illinois, Police Department; the San Diego County District Attorney’s Office Family Protection/Elder Abuse Unit; the U.S. Secret Service; U.S. Small Business Administration Office of Inspector General; IOC-2; INTERPOL Washington; USCIS; U.S. State Department’s Diplomatic Security Service; and the U.S. Attorney’s Offices of the Northern District of Alabama, District of Arizona, Central District of California, Northern District of California, District of Colorado, Northern District of Florida, Middle District of Florida, Northern District of Georgia, Northern District of Illinois, Northern District of Indiana, Eastern District of Louisiana, District of Nevada, and the District of New Jersey. The Federal Communications Commission’s Enforcement Bureau provided assistance in TIGTA’s investigation. Additionally, the Executive Office for U.S. Attorneys, Legal and Victim Programs, provided significant support to the prosecution.
Trial Attorney Mona Sahaf of the Criminal Division’s Human Rights and Special Prosecutions Section (HRSP), former Trial Attorney Amanda S. Wick of the Criminal Division’s Money Laundering and Asset Recovery Section, and Assistant U.S. Attorneys Mark McIntyre and Craig Feazel of the Southern District of Texas prosecuted the case. Kaitlin Gonzalez of HRSP was the paralegal for this case.
A Department of Justice website has been established to provide information about the case to already identified and potential victims, and the public. Anyone who believes they may be a victim of fraud or identity theft in relation to this investigation or other telefraud scam phone calls may contact the FTC via this website.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Local man who attempted to orchestrate $51 million fraud scheme sent to prisonRead the Press Release
HOUSTON – A 47-year-old Houstonian is now behind bars for his conviction of wire fraud, announced U.S. Attorney Ryan K. Patrick.
John Wesley Sarpy pleaded guilty Dec. 17, 2018.
Today, U.S. District Judge Vanessa D. Gilmore ordered him to serve a 135-month sentence to be immediately followed by three years of supervised release. He was also ordered to pay a $5,000 fine. At the hearing, the court noted that not only did he attempt to commit fraud while out on bond, he also obstructed justice when he cut off his GPS ankle monitor prior to sentencing. In handing down the sentence, Judge Gilmore noted his criminal history of committing fraud and the sophisticated nature of this offense.
“Sarpy, a recidivist fraudster, repeatedly tried to obtain multi-million dollar loans using falsified documents,” said Special Agent in Charge Perrye K. Turner of the FBI. “While the fruit of his perseverance didn't result in obtaining any money, our case agents feared that at some point he would successfully get funded with a multi-million dollar payday, all based on fraud. Our agents were determined to make sure that didn't happen, and they stopped Sarpy in his tracks.”
Sarpy knowingly submitted fraudulent documents in an attempt to obtain multimillion-dollar loans from various lending institutions. During the scheme, Sarpy incorporated several different companies to perpetuate his fraud including Sarpy Investment Corporation and Legacy International Production & Exploration Corporation. Some of the false documents he submitted included financial audit opinions for Sarpy Investment Corporation which purported to be from the auditing firms KPMG, BDO and PricewaterhouseCoopers. However, the investigation revealed Sarpy was not a client of any of these companies and all the financials he submitted in support of all the loans were forged and fictitious.
On four separate occasions in 2018, Sarpy submitted such false audit reports with forged signatures and false financials to four different institutions in failed attempts to secure approximately $51 million in loans.
Sarpy was previously released on bond but violated his conditions of release when he cut off his GPS monitor and fled. Law enforcement later found him in the Northern District of Texas and took him into custody where he remains pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation. Assistant U.S. Attorney Suzanne Elmilady prosecuted the case.
Houston man gets huge sentence for sex trafficking minorsRead the Press Release
HOUSTON – A 25 year-old resident of Houston has been ordered to federal prison after he threatened two young girls and required them to engage in commercial sex, announced U.S. Attorney Ryan K. Patrick.
A Houston federal jury deliberated for one hour before returning a guilty verdict against Romello Lee following less than three days of trial on March 6. He was convicted on one count of trafficking a minor for commercial sex and one count of trafficking a minor by force for commercial sex.
Today, U.S. District Judge David Hittner sentenced Lee to serve a total of 480 months in federal prison. He was further ordered to pay restitution to known victims and will serve the rest of his life on supervised released following completion of his prison term, during which time 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.
“Too many of our children are falling victims to sex trafficking and predators like Romello Lee,” said Special Agent in Charge Perrye K. Turner of the FBI. “We hope today's sentence sends a strong message to those who continue to exploit our youth, but we also hope it sheds promise to sex trafficking victims waiting to be rescued.”
During the trial, the jury heard Lee used Backpage.com, a defunct solicitation website, to advertise the sexual services of two minor victims, ages 14 and 16.
From July 2017 to March 2018, Lee harbored, advertised and profited from commercial sex acts of the 16-year-old minor victim. He required her to earn a quota of up to $500 per night and would threaten and beat her if she disobeyed him.
A second victim was held against her will and required to engage in sexual acts by threats of violence and coercion.
Jurors heard from the second victim as well as another adult victim he managed. They testified as to the consequences if they were to escape and how they were expected to be branded with a tattoo of his name or rap label.
The jury also saw numerous Backpage ads Lee posted as well as Instagram posts and text messages between him and the minor victim, detailing his control of her dates, her nightly quota and her beatings.
Law enforcement ultimately arrested Lee in a sting operation with one of the minors at a hotel in northwest Houston.
Lee 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 Texas Department of Public Safety, Houston Police Department and FBI conducted the investigation as part of the Human Trafficking Rescue Alliance (HTRA).
HTRA law enforcement includes members of the Houston Police Department, FBI, Immigration and Customs Enforcement’s Homeland Security Investigations, Texas Attorney General’s Office, IRS-Criminal Investigation, Department of Labor (DOL), DOL – Wage and Hour Division, Department of State, Texas Alcoholic and Beverage Commission, 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 United States 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. Attorneys Richard D. Hanes and Heather Winter prosecuted the case.
Zapata man sentenced after attempting to smuggle 18 bundles of marijuanaRead the Press Release
LAREDO, Texas – A 44-year-old U.S. citizen has been ordered to federal prison following his conviction of conspiring to conspiracy to possess with intent to distribute marijuana, announced U.S. Attorney Ryan K. Patrick.
Roberto Villarreal, Zapata, pleaded guilty Aug. 4.
Today, U.S. District Judge Marina Garcia Marmolejo handed Villarreal a 120-month sentence to be immediately followed by eight years of supervised release.
At the hearing, the court heard that he has two prior federal marijuana-related convictions and was serving a supervised term of release for one of those sentences when he was arrested for the current crime. The court revoked the remainder of that term and ordered Villarreal serve an additional 30 months to be served concurrently for a total 120-month term of imprisonment.
Villarreal admitted that on March 15 he drove to a ranch near Falcon Lake intending to pick up 183 kilograms of marijuana. He initially grabbed the 18 bundles, but saw authorities and returned the drugs to the ranch and intended to get them later.
Law enforcement conducted a traffic stop, at which time Villarreal admitted his plan. He then led them to the ranch where he left the drugs. There, authorities discovered a boot print matching Villarreal’s shoes.
Villarreal 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 with the assistance of Border Patrol and the Zapata County Sheriff’s Office. Assistant U.S. Attorney Paul Harrison prosecuted the case.
Two Houston men charged with attempting to fraudulently sell 50 million masksRead the Press Release
HOUSTON – Two Houston area men have been charged for attempting to fraudulently sell 50 million non-existent N95 facemasks to a foreign government, announced U.S. Attorney Ryan K. Patrick.
Paschal Ngozi Eleanya, 46, turned himself in to authorities today and is expected to make his initial appearance before U.S. Magistrate Judge Sam S. Sheldon at 2 p.m. Authorities took Arael Doolittle, 55, into custody Nov. 20. He made his initial appearance yesterday and is set for an arraignment and detention hearing Nov. 25 at 10 a.m.
A federal grand jury returned the three-count indictment Nov. 19. Both are charged for their role in a scheme to sell 50 million 3M model 1860 N95 respirator masks to a foreign government they did not actually possess. The indictment also alleges they defrauded a foreign government out of more than $317 million - the total purchase price of the masks
According to the indictment, Doolittle, Eleanya and their brokers negotiated a sales price for the masks that was five times the public list price that 3M had set. The two expected to personally obtain up to $275 million as a result of the fraudulent scheme, according to the charges. Based on their representations, the foreign government allegedly wired the funds to complete the purchase.
Authorities disrupted the transaction before it could be completed.
If convicted, both Doolittle and Eleanya face up to five years in prison for conspiracy and up to 20 years in prison for each of the two counts of wire fraud. Each of these charges also carry a possible $250,000 maximum fine.
The Secret Service conducted the investigation. Assistant U.S. Attorney Justin R. Martin is prosecuting the case.
Attorney General William P. Barr created the COVID-19 Hoarding and Price Gouging Task Force which coordinates efforts between the Antitrust Division and U.S. Attorneys across the country wherever illegal activity involving protective personal equipment occurs. The Department of Health and Human Services has issued a notice designating categories of health and medical supplies that must not be hoarded or sold for exorbitant prices.
The public is asked to report COVID-19 fraud, hoarding or price-gouging to the National Center for Disaster Fraud’s (NCDF) National Hotline at (866) 720-5721 or visit The Department of Justice’s NCDF website.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
South Carolina Man Pleads Guilty to Conspiracy to Provide Material Support to ISISRead the Press Release
In San Antonio today, 34-year-old Kristopher Sean Matthews (aka Ali Jibreel) admitted to conspiring to provide material support to the designated foreign terrorist organization Islamic State of Iraq and al-Sham/Syria (aka ISIS), announced Assistant Attorney General for National Security John C. Demers, U.S. Attorney Gregg N. Sofer for the Western District of Texas, and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
Appearing before U.S. Magistrate Judge Elizabeth S. Chestney, Matthews pleaded guilty to a conspiracy charge to provide material support to ISIS. By pleading guilty, Matthews admitted that since May 2019, he conspired with 22-year-old Jaylyn Christopher Molina (aka Abdur Rahim) of Cost, TX, to share bomb-making information for the purposes of domestic and foreign attacks on behalf of ISIS and to radicalize and recruit other individuals to support ISIS.
Matthews faces up to 20 years in federal prison. He remains in federal custody pending sentencing scheduled for 10:30 am on March 4, 2021, before Chief U.S. District Judge Orlando L. Garcia in San Antonio.
Molina and Matthews were charged by a federal grand jury indictment handed down on Oct. 14, 2020, with one count of conspiracy to provide material support to a designated foreign terrorist organization and one substantive count of providing material support to a designated foreign terrorist organization. Molina, who remains in federal custody, faces up to 40 years in federal prison upon conviction.
The San Antonio FBI’s Joint Terrorism Task Force (JTTF), with valuable assistance from the San Antonio Police Department, the United States Secret Service, and the Gonzalez County Sheriff’s Office, continues to investigate this case. Assistant U.S. Attorneys Mark Roomberg, William R. Harris, and Eric Fuchs and DOJ Trial Attorneys George Kraehe and Felice J. Viti of the National Security Division’s Counterterrorism Section are prosecuting this case on behalf of the government.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. Molina is presumed innocent until proven guilty in a court of law.
MS-13 members charged with murderRead the Press Release
HOUSTON – Five local members of the violent Mara Salvatrucha (MS-13) international street gang are set to appear in court following charges of conspiracy and murder in aid of racketeering, announced U.S. Attorney Ryan K. Patrick.
Wilson Jose Ventura-Mejia, 24, Jimmy Villalobos-Gomez, 23, Angel Miguel Aguilar-Ochoa, 35, Walter Antonio Chicas-Garcia, 23, and Marlon Miranda-Moran, 21, will appear for their arraignments and detention hearings via video before U.S. Magistrate Judge Sam S. Sheldon at 10 a.m. All are El Salvadorian nationals who illegally resided in Houston. Also charged is Franklin Trejo-Chavarria, 23, who is currently in custody in El Salvador.
A federal grand jury returned the indictment Nov. 12. All are charged with conspiracy and murder in aid of racketeering.
The indictment alleges they committed a 2018 murder in furtherance of the MS-13 enterprise. The victim was allegedly beaten to death with machetes in order for the defendants to further their positions in the enterprise.
If convicted, they face a potential death sentence.
The FBI, Immigration and Customs Enforcement’s Homeland Security Investigations and Houston Police Department conducted the investigation. Assistant U.S. Attorneys Britni Cooper and John Michael Lewis are prosecuting the case along with Trial Attorneys Julie A. Finocchiaro, Gerald Collins and Matthew Hoff from the Department of Justice’s Organized Crime and Gang Section.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.