Southern District of Texas
Press releases recorded for this federal judicial district.
Tax preparer sent to prison after causing more than $3 million in fraudulent tax returnsRead the Press Release
HOUSTON - A suburban Houston-area man has been ordered to prison following his convictions of 15 counts of fraud and tax violations, announced U.S. Attorney Ryan K. Patrick.
A Houston federal jury convicted Winfred Fields Feb. 13 following a two-week trial.
Today, U.S. District Judge Ewing Werlein Jr. handed Fields a 109-month sentence to be immediately followed by three years of supervised release.
Fields operated tax and bookkeeping businesses from an office on Richmond Avenue in Houston for many years under the business names Fields Enterprises, Your Tax Professionals and The Tax Boss.
At trial, the jury heard Fields participated in a scheme involving the submission of U.S. Individual Tax Returns on behalf of foreign people working on vessels on the Outer Continental Shelf of the United States. These crewmembers were engaged in oil and gas exploitation activities in the Gulf of Mexico.
“In order to enrich himself and line his own pockets, the defendant mislead his clients by falsely claiming an international tax treaty was justification for amending their tax returns,” said Special Agent in Charge D. Richard Goss of IRS-Criminal Investigation’s (CI) Houston Field Office. “As shown by today’s sentencing, this type of deceit will not go unpunished. IRS-CI will continue to protect the public by pursuing unscrupulous tax return preparers.”
“Tax fraud schemes have been around for many years,” said Inspector in Charge Adrian Gonzalez of the Houston Division of the U.S. Postal Inspection Service (USPIS). “USPIS is committed to working with our law enforcement partners to ensure the U.S. Mails are not used as a tool to facilitate these fraudulent schemes. The arrest and sentencing of Winfred Fields was a direct result of the collaborative efforts between the USPIS and IRS-CI.”
At trial, the evidence showed Fields falsely claimed workers were exempt from U.S. tax under a tax treaty between the United States and the United Kingdom, Spain or New Zealand. The employing companies had previously provided to the IRS withholdings from the worker’s wages and reported the income to the IRS. However, Fields submitted amended tax returns as well as original nonresident tax forms 1040NR claiming a refund of the entirety of the amounts paid in as U.S. taxes for various tax years including 2007 through 2012.
Fields charged a fee of $2,500 for each crew member’s first return and required a $1,000 fee for each return thereafter. He required direct receipt of the refunds so he could negotiate the checks and take his fee off the top. Fields had some refund checks deposited directly into one of several bank accounts he maintained. Alternatively, he cashed the checks at a Houston check cashing business or had the checks deposited into one of several attorney trust accounts three different Houston lawyers had maintained. Fields gathered the check proceeds or deposited them into the attorney trust accounts after paying a fee to the check cashing business and the attorneys for the service of cashing the U.S. Treasury checks. Fields deposited the proceeds in one of several bank accounts he utilized during the scheme.
Fields agreed to provide the remainder of the refund proceeds to the foreign clients. He did that for a while, but ultimately stopped forwarding any money to the workers. As those individuals began contacting him to ask for updates on their refund claims, he repeatedly sent misleading and materially false responses to their questions.
The jury heard that Fields fraudulently obtained $3,097,974.19 in tax refunds from the IRS and kept approximately $1,302,271.75 for himself.
The defense attempted to convince the jury he acted in good faith and believed the wages were exempt. He also claimed he was trying to pay the crewmembers their refunds but just got behind. The jury rejected Fields’ contentions in their verdict and found him guilty as charged on all 15 counts.
Fields was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the future.
IRS - CI and USPIS conducted the investigation. Assistant U.S. Attorneys Melissa Annis and Charles Escher prosecuted this case.
Man guilty of filing false corporate income tax returnRead the Press Release
HOUSTON – A man has admitted he filed a tax return alleging there were no taxes owed, announced U.S. Attorney Ryan K. Patrick.
Gilberto Parada-Arevalo pleaded guilty today to one count of filing a false 2011 U.S. corporate income tax return for Tamaleria Panaderia Y Pupuseria La Roca Inc. In that return, he falsely claimed the corporation owed no income taxes for 2011.
As part of the plea agreement, Parada-Arevalo agreed the relevant conduct - total intended tax loss - for purposes of sentencing is between $100,000 and $250,000. He has agreed to pay more than $74,000 in restitution to the IRS.
U.S. District Judge George Hanks accepted the plea and set sentencing for Nov. 16. At that time, Parada-Arevalo faces up to three years in federal prison and a possible $250,000 maximum fine.
He was permitted to remain on bond pending that hearing.
IRS – Criminal Investigation conducted the investigation0n. Assistant U.S. Attorney Charles J. Escher is prosecuting the case.
Leader of local cocaine distribution cell headed to prisonRead the Press Release
HOUSTON – A 37-year-old Houston man has been handed a significant sentence following his conviction of conspiracy to possess with intent to distribute cocaine, announced U.S. Attorney Ryan K. Patrick.
Ernesto Martinez pleaded guilty Sept. 25, 2019.
Today, Chief U.S. District Judge Lee H. Rosenthal imposed a 200-month sentence to be followed by five years of supervised release.
In handing down the sentence, the court found Martinez ran a large-scale cocaine distribution network that spanned more than four years. During that time, Martinez and his associates distributed more than 50 kilograms of cocaine to a large number of cocaine distributors based throughout the country to include cities in Texas, Ohio, Florida and Arkansas.
The judge found Martinez to be a leader and organizer in the drug operation who dealt directly with cartel members in Mexico.
Martinez also possessed a firearm when trafficking cocaine on one occasion and maintained a residence in Houston used to stash cocaine and drug proceeds.
To date, seven others have been convicted for their respective roles in the drug trafficking organization.
Martinez has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration and Harris County Sheriff’s Office led the investigation as part of the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
Assistant U.S. Attorney Casey N. MacDonald is prosecuting the case.
Houstonian on state bond ordered into federal custodyRead the Press Release
HOUSTON – A 20-year-old man has made an appearance in federal court and ordered detained on charges relating to sexual exploitation of a child, announced U.S. Attorney Ryan Patrick.
A federal grand jury returned the indictment against Javon Opoku Aug. 19. Authorities took him into custody Aug. 24.
Today, he appeared before U.S. Magistrate Judge Andrew M. Edison who found Opoku was a danger to the community and ordered him detained pending further criminal proceedings.
The court heard that Opoku had been pulled over for a traffic violation in February. According to testimony, Opoku was on a bond for capital murder, evading arrest and unlawful carrying of a weapon charges at the time of the stop. Law enforcement seized his cellphone and took him into custody. He was later released again on bond.
According to testimony today, Opoku had been on bond for eight different charges that stemmed from alleged activities on four different dates.
At the hearing, the court also heard that law enforcement conducted a search of his seized phone and discovered three videos that appeared to be child pornography. The videos all allegedly depict Opoku vaginally penetrating a 16-year-old female.
Common conditions of bond generally include that individuals not possess weapons, refrain from narcotics and not commit new offenses, according to testimony. The court heard Opoku had done some or all of this while out on his previous bond.
If convicted, Opoku faces a minimum of 15 and up to 30 years in federal prison and a possible $250,000 maximum fine as well as restitution.
The FBI and Houston Police Department conducted the investigation.
Assistant U.S. Attorney Kimberly Ann Leo is prosecuting the case, which was brought as part of Project Safe Childhood - a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Former fugitive and alleged gang member charged with trafficking fentanylRead the Press Release
CORPUS CHRISTI, Texas – A federal grand jury has returned an indictment against a former Texas top 10 fugitive and alleged member of the Aryan Brotherhood of Texas, announced U.S. Attorney Ryan K. Patrick.
The indictment was unsealed today charging Tyral Glenn Turner, 34, of Mathis. He had been in state custody on related charges. He is expected to appear in Corpus Christi federal court before U.S. Magistrate Judge Jason B. Libby Sept. 2.
The indictment charges Turner with one count of possession with intent to distribute over 350 grams of fentanyl and one count of unlawful possession of a firearm by a felon.
Authorities apprehended Turner June 26 as part of Operation Triple Beam, a collaboration of federal, state and local authorities targeting alleged violent gang members in the gulf coast region. At the time of his arrest, law enforcement allegedly seized over 350 grams of fentanyl packaged for distribution.
The charges further allege he also had a loaded 9 mm glock model 19 in his possession. Turner is a convicted felon. As such, he is prohibited by federal law of possessing a firearm or ammunition.
If convicted of the drug charges, he faces up to 40 years in federal prison and a possible $5 million maximum fine. The gun charge carries a 10-year-maximum possible penalty.
The U.S. Marshals Service and Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorney Neel Kapur 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.
Cuban fugitive facing drug charges caught after allegedly trying to flee US by boatRead the Press Release
CORPUS CHRISTI, Texas – A Cuban national has made another appearance in federal court following the return of a superseding indictment related to the distribution of cocaine, announced U.S. Attorney Ryan K. Patrick.
Osvaldo Iglesias Ruiz, 34, is charged with one count of possession with intent to distribute more than 10 kilograms of cocaine.
Ruiz was originally charged by criminal complaint in March. He made an initial appearance on those charges, but was granted release upon posting bond. Shortly thereafter, authorities caught him as he was allegedly attempting to flee the United States in a boat off the coast of Florida heading towards Cuba. He appeared in court today and ordered into custody pending further criminal proceedings.
According to the criminal complaint, on March 14, Ruiz approached the Javier Vega Jr. checkpoint in Sarita traveling northbound. He was allegedly driving a tractor-trailer, but without an attached trailer. The complaint alleges he provided authorities inconsistent answers pertaining to the direction he was traveling. A K-9 also alerted to the rear differential of the vehicle, according to the charges.
He was then referred to secondary inspection where authorities allegedly discovered multiple cocaine bundles weighing more than 10 kilograms.
The drugs have an estimated street value of $250,000.
If convicted, Ruiz faces up to life in federal prison and a possible $10 million maximum fine.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of Customs and Border Protection, U.S. Marshals Service and U.S. Coast Guard. Assistant U.S. Attorney Neel Kapur 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.
Pain doctor pays to settle allegations of deceptive Medicare billingRead the Press Release
HOUSTON – A 52-year-old pain management physician from Houston has paid $530,000 to resolve allegations he falsely billed Medicare for the use of electro-acupuncture devices, announced U.S. Attorney Ryan K. Patrick.
From March 1, 2019, to Oct. 31, 2019, Dr. Syed Nasir billed Medicare for the implantation of neurostimulator electrodes–a surgical procedure that usually requires use of an operating room. Medicare pays thousands of dollars for this procedure.
However, Nasir did not perform these surgeries. Instead, he applied a device used for electro-acupuncture. This procedure involves inserting needles into patients’ ears with the neurostimulator taped behind them with an adhesive.
Medicare does not reimburse for electro-acupuncture devices as implantable neurostimulators.
This is the second settlement of its kind involving electro-acupuncture billing the Southern District of Texas has resolved.
The Department of Health and Human Services – Office of Inspector General and the Centers for Medicare and Medicaid Services conducted the investigation with the assistance of Qlarant, the Unified Program Integrity Contractor for Medicare. Assistant U.S. Attorney Brad Gray handled the matter.
The claims resolved by this agreement are allegations only, and there has been no determination of liability.
Foreign traveler convicted of bringing in child pornographyRead the Press Release
McALLEN, Texas - A 31-year-old Mexican national has pleaded guilty to transportation of child pornography, announced U.S. Attorney Ryan K. Patrick.
On Dec. 10, 2019, Edgar Arevalo-Lara entered the United States from Mexico through the Roma Port of Entry. There, he claimed he was travelling to Dallas for a month. However, authorities noticed he did not appear to have enough luggage or money with him to support his reported length of stay.
Upon further investigation, they discovered 53 images on his phone depicting minors engaged in sexually explicit conduct. He admitted he downloaded child pornography from the internet and knew the images were graphic.
U.S. District Judge Randy Crane accepted the plea and has set sentencing for Nov. 5. At that time, Arevalo-Lara faces a minimum of five and up to 20 years imprisonment and a possible $250,000 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 Kristina Pekkala prosecuted the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
Young man convicted of bomb threat against federal buildingRead the Press Release
BROWNSVILLE, Texas - A 19-year-old resident of Harlingen made an appearance in federal court today and admitted he was responsible for threatening to destroy the Federal Reserve, announced U.S. Attorney Ryan K. Patrick.
Joel Hayden Schrimsher pleaded guilty to conveying false or misleading information through the internet concerning the potential destruction of a federal building.
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.
U.S. District Judge Fernando Rodriguez will impose sentencing Nov. 30 at 8:30 a.m., at which time Schrimsher faces up to five years in prison and a $250,00o maximum possible fine. He has been and will remain in custody pending that hearing.
The FBI, Cameron County District Attorney’s Office, Harlingen Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorneys Jody Young and Oscar Ponce are prosecuting the case.
Texas professor and NASA researcher arrested on charges related to China’s Talents ProgramRead the Press Release
HOUSTON – A criminal complaint has been unsealed charging a 53-year-old College Station man for conspiracy, making false statements and wire fraud.
Texas A&M University (TAMU) Professor Zhengdong Cheng is expected to make his initial appearance before U.S. Magistrate Judge Sam Sheldon today at 2 p.m. in Houston. Authorities took him into custody Sunday, Aug. 23.
Cheng allegedly led a team conducting research for NASA. According to the criminal complaint, for several years he willfully took steps to obscure his affiliations and collaboration with a Chinese University and at least one Chinese-owned company. The terms of Cheng’s grant prohibited participation, collaboration or coordination with China, any Chinese-owned company or any Chinese University, according to the charges.
“China is building an economy and academic institutions with bricks stolen from others all around the world,” said U.S. Attorney Ryan K. Patrick. “While 1.4 million foreign researchers and academics are here in the U.S. for the right reasons, the Chinese Talents Program exploits our open and free universities. These conflicts must be disclosed, and we will hold those accountable when such conflict violates the law.”
“Once again we have witnessed the criminal conflicts that can arise from participation in the Chinese government’s talent program,” said Assistant Attorney General for National Security John C. Demers. “Professor Cheng allegedly made false statements to his university and to NASA regarding his affiliations with the Chinese government. The Department of Justice will continue seeking to illuminate the darkness around these talent programs and expose the exploitation of our nation and our prized research institutions.”
The charges allege Cheng and TAMU received funds based on Cheng knowingly providing false information to TAMU and consequently to NASA. In addition to the funds, Cheng personally benefited from his affiliation with TAMU and NASA with increased access to unique NASA resources, such as the International Space Station, according to the complaint. This access allegedly allowed Cheng to further his standing in China at Guangdong University of Technology and other universities. The charges further allege he held senior research positions there unknown to TAMU and NASA and was able to serve in the People’s Republic of China Talents program.
China’s Talents Plans are allegedly designed to attract, recruit and cultivate high-level scientific talent in furtherance of China’s scientific development, economic prosperity and national security.
“NASA’s funding restrictions are in place to protect taxpayer-financed research dollars and intellectual property,” said Special Agent in Charge Mark Zielinski, NASA Office of Inspector General (OIG) - Eastern Field Office. “We will continue pursue anyone who attempts to circumvent these guidelines and conceal affiliations with Chinese institutions and companies in order to obtain NASA grant money.”
“Dr. Cheng is accused of hiding his affiliation with the Guangdong University of Technology, along with other foreign universities, while disregarding the rules established under his NASA contract during his employment at TAMU,” said FBI Houston Special Agent in Charge Perrye K. Turner. “These alleged actions came to light through the tireless work of the FBI-Bryan Resident Agency and NASA-OIG investigative teams. We are grateful to TAMU, TAMU System and TAMU Engineering Experiment Station for providing significant assistance through their partnership with us throughout this case.”
Assistant U.S. Attorneys Carolyn Ferko and S. Mark McIntyre are prosecuting the case with the assistance of trial attorney Matthew McKenzie of the National Security Division’s Counterintelligence and Export Control Section.
A criminal complaint is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
NASA Researcher Arrested for False Statements and Wire Fraud in Relation to China’s Talents ProgramRead the Press Release
A criminal complaint has been unsealed today, charging Zhengdong Cheng, 53, of College Station, Texas, for conspiracy, making false statements and wire fraud.
Texas A&M University (TAMU) Professor Zhengdong Cheng is expected to make his initial appearance before U.S. Magistrate Judge Sam Sheldon today at 10 a.m. in Houston, Texas. Authorities took him into custody Sunday, Aug. 23.
Cheng allegedly led a team conducting research for NASA. According to the criminal complaint, for several years he willfully took steps to obscure his affiliations and collaboration with a Chinese University and at least one Chinese-owned company. The terms of Cheng’s grant prohibited participation, collaboration or coordination with China, any Chinese-owned company or any Chinese University, according to the charges.
“Once again, we have witnessed the criminal consequences that can arise from undisclosed participation in the Chinese government’s talent program,” said Assistant Attorney General for National Security John C. Demers. “Professor Cheng allegedly made false statements to his university and to NASA regarding his affiliations with the Chinese government. The Department of Justice will continue seeking to bring participation in these talent programs to light and to expose the exploitation of our nation and our prized research institutions.”
“China is building an economy and academic institutions with bricks stolen from others all around the world,” said U.S. Attorney Ryan K. Patrick for the Southern District of Texas. “While 1.4 million foreign researchers and academics are here in the U.S. for the right reasons, the Chinese Talents Program exploits our open and free universities. These conflicts must be disclosed, and we will hold those accountable when such conflict violates the law.”
“As alleged, Zhengdong Cheng knowingly deceived NASA officials about his association with Chinese owned companies and universities, willingly accepted U.S. government funding, and defrauded his university,” said Assistant Director Alan Kohler, Jr. of the FBI’s Counterintelligence Division. “The FBI is committed to aggressively pursuing those individuals who try and undercut our U.S. research institutions and government agencies by concealing their participation in Chinese talent recruitment programs and to hold them accountable for their actions.”
“NASA’s funding restrictions are in place to protect taxpayer-financed research dollars and intellectual property,” said Special Agent in Charge Mark Zielinski, NASA Office of Inspector General (OIG) - Eastern Field Office. “We will continue pursue anyone who attempts to circumvent these guidelines and conceal affiliations with Chinese institutions and companies in order to obtain NASA grant money.”
“Dr. Cheng is accused of hiding his affiliation with the Guangdong University of Technology, along with other foreign universities, while disregarding the rules established under his NASA contract during his employment at TAMU,” said FBI Houston Special Agent in Charge Perrye K. Turner. “These alleged actions came to light through the tireless work of the FBI-Bryan Resident Agency and NASA-OIG investigative teams. We are grateful to TAMU, TAMU System and TAMU Engineering Experiment Station for providing significant assistance through their partnership with us throughout this case.”
The charges allege Cheng and TAMU received funds based on Cheng knowingly providing false information to TAMU and consequently to NASA. In addition to the funds, Cheng personally benefited from his affiliation with TAMU and NASA with increased access to unique NASA resources, such as the International Space Station, according to the complaint. This access allegedly allowed Cheng to further his standing in China at Guangdong University of Technology and other universities. The charges further allege he held senior research positions there unknown to TAMU and NASA and was able to serve in the People’s Republic of China Talents program. China’s Talents Plans are allegedly designed to attract, recruit and cultivate high-level scientific talent in furtherance of China’s scientific development, economic prosperity and national security.
The FBI-Bryan Resident Agency and NASA-Office of Inspector General conducted the investigation with the assistance of TAMU. Assistant U.S. Attorneys Carolyn Ferko and S. Mark McIntyre are prosecuting the case with the assistance of trial attorney Matthew McKenzie of the National Security Division’s Counterintelligence and Export Control Section.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Houstonian charged with defrauding investors in false lending schemeRead the Press Release
HOUSTON – A 67-year-old resident of Houston is set to appear in federal court on allegations of mail fraud, announced U.S. Attorney Ryan K. Patrick.
Alan H. Paull is expected to make his initial appearance before U.S. Magistrate Judge Sam Sheldon today at 2:15 p.m.
The indictment, returned Aug. 12, charges Paull with four counts of mail fraud for his alleged role in a scheme to defraud investors in his lending business Paull & Partners Investments LLC. From approximately July 2014 through September 2015, Paull allegedly made false representations and concealed material facts from those who had provided funds to his lending enterprise.
The charges allege he failed to repay investors their principal when a property sold as he had represented to them. Instead, Paull continued to pay monthly interest to those investors leading them to believe the properties had not been sold, according to the charges.
If convicted of mail fraud, Paull faces up to 20 years in federal prison as well as a possible $250,000 maximum fine.
The FBI conducted the investigation with the assistance of the Texas State Securities Board. Assistant U.S. Attorney John Braddock 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.
Texas Rapper Charged in Narcotics and Prescription Opioid ConspiracyRead the Press Release
Authorities have taken nine people into custody on charges involving the distribution of meth, cocaine and/or oxycodone and hydrocodone, announced Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division and U.S. Attorney Ryan K. Patrick for the Southern District of Texas.
Jermaine West, 42, aka Breadman is charged with Jonathan Rawlins, 44, and Bobby Pharms, 34, all from Houston, Texas, in the meth and cocaine conspiracy. The indictment also alleges West was involved in the illegal distribution of prescription opioids along with Tersha French, 46, Ronald Lucas, 40, and Antonia Vega, 32, all from Houston; Cynthia Ngwaba, 46, Richmond, Texas; Leon Covin, 47, Katy, Texas; and Toni Maria Nalintya, 48, Pearland, Texas.
The indictment was unsealed in its entirety today as authorities took Rawlins into custody. He is expected to make his initial appearance before U.S. Magistrate Judge Sam Sheldon at 10 a.m. CDT tomorrow. The others made their appearances earlier this week.
A federal grand jury returned the indictment under seal Aug. 13. According to the charges, West allegedly engaged in conspiracy during 2018 to 2019 to distribute meth and cocaine near schools and other locations in the Houston area with Rawlins and Pharms. West allegedly conducted some of the illegal activity on multiple occasions within 1000 feet of Worthing High School in the 3rd Ward of Houston.
The indictment alleges the conspiracy also involved the distribution of prescription opioids. West allegedly obtained the drugs from French, Lucas, Vega, Ngwaba, Covin and Nalintya via the Ennis Street Pharmacy and Barker Cypress Pharmacy in Houston.
An indictment is merely an accusation. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI conducted the investigation through the Houston Anti-Gang Center with the assistance of the Houston Police Department, Texas Department of Public Safety and Drug Enforcement Administration. Trial Attorney Devon Helfmeyer with the Criminal Division’s Fraud Section and Assistant U.S. Attorney Jason Corley are prosecuting the case.
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.
Houston rapper charged in narcotics and prescription opioid conspiracyRead the Press Release
HOUSTON – Authorities have taken nine people into custody on charges involving the distribution of meth, cocaine and/or oxycodone and hydrocodone, announced U.S. Attorney Ryan K. Patrick and Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division.
Jermaine West, 42, aka Breadman is charged with Jonathan Rawlins, 44, and Bobby Pharms, 34, all from Houston, in the meth and cocaine conspiracy. The indictment also alleges West was involved in the illegal distribution of prescription opioids along with Tersha French, 46, Ronald Lucas, 40, and Antonia Vega, 32, all from Houston; Cynthia Ngwaba, 46, Richmond; Leon Covin, 47, Katy; and Toni Maria Nalintya, 48, Pearland.
The indictment was unsealed in its entirety today as authorities took Rawlins into custody. He is expected to make his initial appearance before U.S. Magistrate Judge Sam Sheldon at 10 a.m. tomorrow. The others made their appearances earlier this week, some of whom were ordered into custody pending detention hearings scheduled for Monday, Aug. 24.
A federal grand jury returned the indictment under seal Aug. 13. According to the charges, West allegedly engaged in conspiracy during 2018-2019 to distribute meth and cocaine near schools and other locations in the Houston area with Rawlins and Pharms. West allegedly conducted some of the illegal activity on multiple occasions within 1000 feet of Worthing High School in the 3rd Ward of Houston.
The indictment alleges the conspiracy also involved the distribution of prescription opioids. West allegedly obtained the drugs from French, Lucas, Vega, Ngwaba, Covin and Nalintya via the Ennis Street Pharmacy and Barker Cypress Pharmacy in Houston.
If convicted on the illegal narcotics charges, West, Rawlins and Pharms face up to life in prison and possible fines up to $10 million. For each count of the prescription drug charges, West also faces up to 20 years in prison as well as additional fines up to $1 million along with the six others.
The FBI conducted the investigation through the Houston Anti-Gang Center with the assistance of the Houston Police Department, Texas Department of Public Safety, Drug Enforcement Administration, Texas Department of Criminal Justice - Office of Inspector General, Harris County Sheriff’s Office and Texas Office of the Attorney General – Medicaid Fraud Control Group. Assistant U.S. Attorney Jason Corley and DOJ Trial Attorney Devon Helfmeyer 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.
Former oil and gas employee sentenced after using company card for $850K of personal useRead the Press Release
HOUSTON – A 59-year-old Bryan resident has been ordered to federal prison after he admitted to wire fraud, announced U.S. Attorney Ryan K. Patrick.
James Day Burke pleaded guilty May 12, admitting he defrauded Rustex Inc., an oil and energy company in Bryan.
Today, U.S. District Judge George C. Hanks handed Burke a 41-month sentence to be immediately followed by three years of supervised release. At the hearing, the court heard from Rustex’s owner as well as her two daughters who described the impact the fraud has had on her and the business. In handing down the sentence, the court explained that society needed to be protected from people like Burke, called him a “charlatan” and that he stole for no other reason except for his own selfish greed.
Burke was employed as the bookkeeper at Rustex. From approximately May 2010 to approximately August 2018, Burke made unauthorized charges on company credit cards for personal expenses. He then paid those unauthorized personal charges from Rustex’s bank account.
For example, Burke accessed Rustex’s American Express account Aug. 7, 2015, to pay the July 2015 statement totaling $32,198.70. This amount included a personal dental charge of $1,954 which he had made using another employee’s company-issued credit card. He paid the outstanding credit card bill with money from Rustex’s bank account.
In total, Burke defrauded the company out of $855,872.42 as a result of his scheme.
Previously released on bond, Burke was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI - Bryan Resident Agency conducted the investigation with the assistance of the Brazos County Sheriff’s Office. Assistant U.S. Attorney John Braddock prosecuted the case.
CBP officer charged with briberyRead the Press Release
McALLEN, Texas – A 46-year-old Alamo man is set to appear in federal court on allegations he accepted a bribe, announced U.S. Attorney Ryan K. Patrick.
Oziel Cantu is charged in a criminal complaint filed today. Authorities took him into custody last night. He is expected to appear before U.S. Magistrate Judge Juan F. Alanis tomorrow at 9:00 a.m.
The charges allege Cantu accepted $15,000 in exchange for facilitating the unlawful importation of narcotics into the United States from Mexico.
Cantu worked at the Pharr Port of Entry and assisted an individual smuggle cocaine that was concealed in a vehicle, according to the charges. He allegedly instructed an individual to use a certain inspection lane at a specified time on Aug. 19, so he could allow the vehicle to pass through inspection.
Cantu allegedly believed that individual had ties to a drug trafficking organization. However, that person was actually an undercover officer.
Authorities took Cantu into custody after arriving to accept the $15,000 payment, according to the complaint.
If convicted of bribery, Cantu faces up to 15 years in federal prison and a possible $250,000 maximum fine.
The Department of Homeland Security - Office of Inspector General and Customs and Border Protection - Office of Professional Responsibility conducted the investigation. Assistant U.S. Attorneys Frances Blake and James Sturgis are prosecuting the case.
A criminal complaint is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
4 men facing criminal charges for illegal gambling business that netted more than $3 millionRead the Press Release
CORPUS CHRISTI, Texas – Four Corpus Christi men are set to appear in federal court following the return of an indictment in relation to the operation of an illegal gambling business, announced U.S. Attorney Ryan K. Patrick.
The indictment was unsealed today and charges Nathan Nichols, 44, Richard Nunez, 47, Richard Conlon, 56, and Douglas Wells, 51, with one count of conspiracy to commit money laundering and four counts of operating an illegal gambling business. They are expected to appear for their arraignment Aug. 27 at 10 a.m. before U.S. Magistrate Judge Jason B. Libby.
From March 13, 2018, to Aug. 1, 2019, the men allegedly owned, operated or managed an illegal gambling business in Corpus Christi. The charges allege they also conspired to launder funds generated from that enterprise.
According to the indictment, Nichols, Nunez, Conlon and Wells concealed and disguised the nature, location, source, ownership and control of the illegal gambling proceeds.
During the course of the investigation, authorities allegedly seized several million dollars, gold bars and multiple vehicles, including a Lamborghini.
If convicted, all face up to 20 years in federal prison and a possible $500,000.00 maximum fine.
The FBI conducted the investigation. Assistant U.S. Attorneys Jeremy C. Fugate, Neel Kapur and Joel Dunn 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.
College Station man admits guilt to multiple charges under Project Safe ChildhoodRead the Press Release
HOUSTON – A 35-year-old Texan has entered a guilty plea to coercion and enticement as well as receipt and possession of child pornography, announced U.S. Attorney Ryan K. Patrick.
Ryan Dale McWhorter had been in a chat group dedicated to the sexual exploitation of children. There, he began communicating with someone he believed to be the stepfather of a 9-year-old girl. McWhorter expressed his sexual interest in the child and asked for naked photos of her, to include her genitals. He also wanted the girl to take a picture of herself touching her stepfather’s penis. The “stepfather” was actually an undercover law enforcement officer.
McWhorter, who was residing in College Station, also discussed his intentions to travel to Florida in order to have sex with the child.
He eventually admitted to the sexual communications. Law enforcement also seized his cellphone. Forensic analysis of that device revealed 40 images of children engaged in sexually explicit conduct which included children under the age of 5.
They also discovered another chat, during which he received a video of child pornography and saved it to the photo gallery on his phone.
McWhorter has been in custody since he was found to be a flight risk and a danger to the community. He will remain there pending his sentencing, which is set for Nov. 16 before U.S. District Judge Lynn N. Hughes. At that time, McWhorter faces up to life in prison for the coercion and enticement conviction, while the receipt and possession of child pornography charges carry additional penalties up to 20 and 10 years, respectively. He could also be ordered to pay up to a $250,000 fine.
The FBI - Bryan Resident Agency and Jacksonville, Florida, Field Office conducted the investigation along with the College Station Police Department.
Assistant U.S. Attorney Kimberly Ann Leo is prosecuting the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
Mexican man sent to prison after smuggling half a million dollarsRead the Press Release
McALLEN, Texas – A 35-year-old resident of Mexico City, Mexico, has been ordered to prison for bulk cash smuggling, announced U.S. Attorney Ryan K. Patrick.
Jorge Alberto Ruiz-Periban pleaded guilty April 8, admitting he evaded a currency reporting requirement in his attempt to conceal $570,247 while trying to take the money into Mexico.
Today, U.S. District Judge Randy Crane handed Ruiz-Periban a 30-month sentence. As part of the terms of the plea agreement, the money will be forfeited to the United States. In handing down the sentence, the court noted the Ruiz-Periban’s employment as a horse trainer in Mexico and that he was likely recruited by the cartel to launder money. Not a U.S. citizen, he is expected to face removal proceedings following the sentence.
“Today’s sentencing of Ruiz-Periban demonstrates that bulk cash smuggling is a serious crime motivated by greed, which directly contributes to the cartel violence that damages communities on both sides of the border,” said Special Agent in Charge Shane Folden of Homeland Security Investigations (HSI) in San Antonio. “HSI will continue to utilize its broad investigative authorities to dismantle transnational criminal organizations who blatantly ignore the laws of this nation.”
On Jan. 8, Ruiz-Periban entered the southbound inspection lanes in a vehicle at the Anzalduas Port of Entry. Authorities referred him to secondary inspection, at which time he denied possession of $10,000 or more in U.S. currency. However, they located an abnormality in the spare tire of Ruiz-Periban’s vehicle and subsequently discovered $570,247 concealed in it.
At the time of his plea, Ruiz-Periban admitted he intended to evade the currency reporting requirement and intended to transport the money he hid in the tire from Mission to Mexico.
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.
HSI conducted the investigation with Customs and Border Protection. Assistant U.S. Attorney Matthew Redavid prosecuted the case.
Former banker and mortgage broker sent to prison for defrauding California bankRead the Press Release
HOUSTON – Two Houston-area family members have been ordered to federal prison following their convictions on multiple counts to include conspiracy, bank fraud, false statements on credit applications, wire fraud and mail fraud, announced U.S. Attorney Ryan K. Patrick.
A federal jury deliberated for approximately seven hours before convicting Carlos Wydler, 49, and Leyla Wydler, 60, both of Houston, on March 7, 2017, following a trial that spanned four weeks.
Today, U.S. District Judge Andrew Hanen imposed an 84-month sentence for Carlos Wydler and ordered him to pay $6,804,260 in restitution to the victim bank and its insurer. U.S. District Judge Andrew S. Hanen sentenced his step-mother to 132 months during a telephonic sentencing hearing in June. She was also ordered to pay the $6 million in restitution joint and several with her stepson. At the hearings, the court heard from the bank’s president who testified it was the largest fraud loss in the bank’s 113-year history
“The capture, conviction and sentencing of this mother and stepson highlight the FBI’s unending commitment to hold accountable greedy individuals who take advantage of their position of trust,” said Special Agent in Charge Perrye K. Turner of the FBI. “The FBI prioritizes financial institution fraud because it is not a victimless crime. Although the Wydlers did not wield weapons or threaten tellers, they endangered the stability of the federal banking system and our economy.”
Leyla Wydler was the owner of several Houston-area businesses including Globan Mortgage Company, Casa Milagro and First Milagro. In the spring 2007, Carlos Wydler went to work at a California bank as a vice-president in charge of the bank’s credit card department. Shortly thereafter, the Wydlers developed a scheme in which Leyla Wydler would send credit card applications to the bank for Carlos Wydler to approve. He approved the applications for high credit lines and then, calling them “balance transfers,” cash advanced the entire credit line to the borrower via wire or check with Leyla Wydler taking a fee from the borrowers’ loan proceeds.
“Greed and deception were at the heart of the Wydler’s scheme, which took advantage of their positions of trust within the banking industry,” said Inspector in Charge Adrian Gonzalez of the U.S. Postal Inspection Service (USPIS). “This case demonstrates that the USPIS remains resolute in our mission to bring to justice those who fraudulently use the nation’s mail system in the furtherance of their deceptive schemes.”
During trial, the evidence demonstrated that the Wydlers were also developing a real estate project in Houston at the time and used the “balance transfer” program to finance investors in their project. The jury heard that the bank did not know or approve of the fee-sharing or real estate financing arrangements.
For approximately a year, hundreds of loan applications were faxed or emailed from Leyla Wydler’s business in Houston to Carlos Wydler at the bank in California. Many of these contained falsified income information and falsified supporting documents about borrowers’ employment, income and assets. Two eyewitnesses testified they saw Leyla Wydler routinely insert falsified income numbers, sometimes using white-out, on loan applications.
Leyla Wydler skimmed more than $1.4 million from loan proceeds, with Carlos Wydler approving approximately $600,000 more in unauthorized loans to family members. More than half of the Texas borrowers run through the Wydler-family business in Houston defaulted on their loans. The bank sustained a loss of more than $6 million.
The defense attempted to convince the jury that Carlos Wydler followed bank policy in his approval decisions. Leyla Wydler’s attorney argued that she did not know that the information she was sending contained falsified information.
The jury did not believe their claims and ultimately convicted both defendants of conspiracy, bank fraud, false statements on credit applications, wire fraud and mail fraud. Carlos Wydler was also found guilty on six counts of misapplication of bank funds.
The Wydlers were taken into custody immediately after the verdict where they will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI, USPIS and Federal Deposit Insurance Corporation conducted the investigation. Assistant U.S. Attorneys Belinda Beek and John Lewis prosecuted the case.
Former Venezuelan official charged in connection with international bribery and money laundering schemeRead the Press Release
HOUSTON – Charges were unsealed today against a former official at Citgo Petroleum Corporation, a Houston-based subsidiary of Venezuela’s state-owned and state-controlled energy company Petróleos de Venezuela S.A. (PDVSA), announced U.S. Attorney Ryan K. Patrick, Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division and Special Agent in Charge Mark Dawson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Houston.
Jose Luis De Jongh Atencio, 48, a dual U.S.-Venezuelan citizen is charged for his alleged role in laundering the proceeds of a scheme involving bribes made to corruptly secure business advantages from Citgo and PDVSA. A federal grand jury in Houston returned the six-count indictment July 16. It was unsealed today upon his initial appearance in federal court.
De Jongh, a former procurement officer and manager in Citgo’s Special Projects Group, is charged with one count of conspiracy to launder money and five counts of money laundering. The indictment alleges that beginning in or around 2013 and continuing through at least 2019, De Jongh agreed to accept bribe payments from businessmen such as Jose Manuel Gonzalez Testino, a dual U.S.-Venezuelan citizen, and Tulio Anibal Farias Perez, a Venezuelan national and Houston resident, and others in exchange for assisting the businessmen and related companies in conducting business with Citgo and PDVSA. According to the indictment, De Jongh received over $2.5 million in bribe payments through the scheme. In return he allegedly provided improper business advantages to Gonzalez and Farias to assist them with procuring Citgo and PDVSA contracts.
The indictment further alleges that De Jongh directed bribe payments from Gonzalez, Farias and others to be made to bank accounts in the names of shell companies in Panama and Switzerland. In some instances, he also allegedly directed the creation of fake invoices to justify payments. De Jongh then laundered the bribe proceeds through U.S. bank accounts and used most of the funds to purchase real property located in the Southern District of Texas (SDTX), according to the charges. De Jongh also allegedly received gifts and other things of value from Gonzalez, Farias and others including tickets to a 2014 World Series Game, Super Bowl XLIX and a U2 concert. Gonzalez and Farias have already entered guilty pleas in connection with the case.
With the unsealing of the indictment today, the Justice Department has announced charges against 27 individuals, 20 of whom have pleaded guilty, as part of a larger, ongoing investigation by the U.S. government into bribery at PDVSA. HSI in Houston is conducting the ongoing investigation with assistance from HSI in Boston and Miami. Assistant U.S. Attorneys (AUSA) John P. Pearson and Robert S. Johnson of the SDTX are prosecuting the case along with Trial Attorneys Sarah E. Edwards and Sonali D. Patel of the Criminal Division’s Fraud Section. SDTX AUSA Kristine E. Rollinson is handling the forfeiture aspects of the case.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
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.
An indictment is merely an allegation and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Venezuelan Official Charged in Connection with International Bribery and Money Laundering SchemeRead the Press Release
Charges were unsealed today against a former official at Citgo Petroleum Corporation, a Houston-based subsidiary of Venezuela’s state-owned and state-controlled energy company Petróleos de Venezuela S.A. (PDVSA).
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Ryan K. Patrick of the Southern District of Texas (SDTX) and Special Agent in Charge Mark Dawson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Houston made the announcement.
Jose Luis De Jongh Atencio (De Jongh), 48, a dual U.S.-Venezuelan citizen is charged for his alleged role in laundering the proceeds of a scheme involving bribes made to corruptly secure business advantages from Citgo and PDVSA. A federal grand jury in Houston returned the six-count indictment July 16. It was unsealed today upon his initial appearance.
De Jongh, a former procurement officer and manager in Citgo’s Special Projects Group, is charged with one count of conspiracy to launder money and five counts of money laundering. The indictment alleges that beginning in or around 2013 and continuing through at least 2019, De Jongh agreed to accept bribe payments from businessmen including Jose Manuel Gonzalez Testino, (Gonzalez), a dual U.S.-Venezuelan citizen, and Tulio Anibal Farias Perez (Farias), a Venezuelan national and Houston resident, and others in exchange for assisting the businessmen and related companies in conducting business with Citgo and PDVSA. According to the indictment, De Jongh received over $2.5 million in bribe payments through the scheme. In return he allegedly provided improper business advantages to Gonzalez and Farias to assist them with procuring Citgo and PDVSA contracts.
The indictment further alleges that De Jongh directed bribe payments from Gonzalez, Farias and others to be made to bank accounts in the names of shell companies in Panama and Switzerland. In some instances, he also allegedly directed the creation of fake invoices to justify payments. De Jongh then laundered the bribe proceeds through U.S. bank accounts and used most of the funds to purchase real property located in the SDTX, according to the charges. De Jongh also allegedly received gifts and other things of value from Gonzalez, Farias and others including tickets to a 2014 World Series Game, Super Bowl XLIX and a U2 concert. Gonzalez and Farias have already entered guilty pleas in connection with the case.
An indictment is merely an allegation and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
With the unsealing of the indictment today, the Justice Department has announced charges against 27 individuals, 20 of whom have pleaded guilty, as part of a larger, ongoing investigation by the U.S. government into bribery at PDVSA. HSI in Houston is conducting the ongoing investigation with assistance from HSI in Boston and Miami. Trial Attorneys Sarah E. Edwards and Sonali D. Patel of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys (AUSA) John P. Pearson and Robert S. Johnson of the SDTX are prosecuting the case. SDTX AUSA Kristine E. Rollinson is handling the forfeiture aspects of the case. The Justice Department’s Office of International Affairs, the Swiss Federal Office of Justice and the Office of the Attorney General of Panama also provided assistance.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
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.
Man sentenced for smuggling nearly 50 illegal aliens inside grain haulerRead the Press Release
CORPUS CHRISTI, Texas – A 49-year-old resident of Weslaco has been ordered to federal prison after admitting to transporting illegal aliens, announced U.S. Attorney Ryan K. Patrick.
Jose Roberto Pompa pleaded guilty May 6.
Today, U.S. District Judge David S. Morales ordered Pompa to serve a 41-month sentence to be immediately followed by two years of supervised release.
On April 29, Pompa drove a covered grain hauler through the Sarita Border Patrol (BP) checkpoint, at which time a K-9 alerted to the vehicle. Authorities then referred Pompa to secondary inspection. They rolled back the cover on the trailer and utilized the built-in ladder to climb down and check. They ultimately found 48 people concealed inside the grain hauler. All were all determined to be illegally present in the United States from the countries of El Salvador, Cuba, Honduras, Peru, Mexico and Guatemala. One was an unaccompanied 15-year-old from Guatemala.
Pompa was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility in early 2021.
BP conducted the investigation. Assistant U.S. Attorney Amanda Gould prosecuted the case.
Leader of meth trafficking ring operating in Houston sentenced to 30 years in prisonRead the Press Release
HOUSTON – A 37-year-old Mexican citizen has been ordered to federal prison following his involvement in a conspiracy to possess with intent to distribute a large amount of meth within the Houston area, announced U.S. Attorney Ryan K. Patrick.
Custodio Carrasco-Garcia aka Ariel was illegally residing in Houston. He pleaded guilty Feb. 21.
Today, U.S. District Judge David Hittner handed Carrasco-Garcia a 360-month term of imprisonment. Not a U.S. citizen, Carrasco-Garcia is expected to face removal proceedings following the sentence.
At the hearing, the court heard information that he ran a local drug trafficking organization with providers in Mexico and participated in running a stash house. In handing down the sentence, Judge Hittner noted Carrasco-Garcia’s two previous drug convictions and that he was on parole when he committed this offense. The court found him accountable for 30,000 kilograms of narcotics including meth and cocaine and was head of the drug trafficking cell in the Houston area, further noting the extensive involvement of others and use of a stash house.
In March 2018, authorities conducted an undercover operation to purchase meth from a suspected narcotics distributor - later identified as Carrasco-Garcia. On April 6, 2018, law enforcement observed Carrasco-Garcia as he conducted a drug transaction involving a kilogram of crystal meth. He received $53,000 in exchange for the drugs. Carrasco-Garcia delivered another kilogram of meth May 18, 2018.
On May 7, 2019, authorities conducted an undercover operation during which Carrasco-Garcia sold 155.9 kilograms of crystal meth. They arrested him shortly after the operation, at which time he again was in possession of illegal substances.
Carrasco-Garcia 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, Houston Police Department and Harris County Sherriff's Office conducted the investigation. Assistant U.S. Attorney Celia Moyer prosecuted the case.
Felon sent back to prison for transporting illegal guns in vehicleRead the Press Release
CORPUS CHRISTI, Texas – A 37-year-old resident of Pharr has been ordered to federal prison after admitting to being a felon in possession of six firearms, announced U.S. Attorney Ryan K. Patrick.
Erasmo Elizondo-Moreno pleaded guilty May 6.
Today, U.S. District Judge David S. Morales ordered Elizondo-Moreno to serve a 66-month sentence to be immediately followed by three years of supervised release.
“When firearms enter the gray market, they are often destined to further a criminal enterprise which fuels violent crime,” said Special Agent in Charge Fred Milanowski of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). “We are pleased to work with our partner agencies to take these illegally possessed guns off the street before they do just that.”
On June 7, 2019, authorities pulled Elizondo-Moreno over for a traffic violation. At that time, he consented to a search of his vehicle. Law enforcement soon found a tool bag in the trunk which contained six pistols concealed inside four vacuum-sealed bags.
He later admitted to transporting the firearms to the Rio Grande Valley in exchange for $500.
Having been convicted April 25, 2019, for possessing marijuana, he is prohibited per federal law of possessing any firearms or ammunition.
Elizondo-Moreno has been in custody since his arrest for a pretrial violation on May 2 where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation with the assistance of the Kleberg County Sheriff’s Office. Assistant U.S. Attorney Amanda Gould prosecuted the case.
Zapata man admits attempt to smuggle marijuanaRead the Press Release
LAREDO, Texas – A 48-year-old man has entered a guilty plea to conspiracy and possession with intent to distribute 183 kilograms of marijuana, announced U.S. Attorney Ryan K. Patrick.
Roberto Villarreal admitted that on March 15 he drove to a ranch near Falcon Lake intending to pick up 18 bundles of marijuana. He initially grabbed the 183 kilograms, but saw authorities and returned the drugs to the ranch with a plan to get them later.
Law enforcement conducted a traffic stop, at which time he admitted what he had done. He then led authorities to the ranch where he had planned to pick up the marijuana. There, they discovered a boot print matching Villarreal’s shoes.
Villarreal has been and will remain in in custody pending his sentencing, which is set for Dec. 1 before U.S. District Judge Marina Garcia Marmolejo. At that time, Villarreal faces a minimum of 10 years and up to life in federal prison.
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 is prosecuting the case.
Woman admits to smuggling cocaine in car batteryRead the Press Release
BROWNSVILLE, Texas – A 21-year-old Mexican national has admitted to possessing with the intent to distribute more than five pounds of cocaine, announced U.S. Attorney Ryan K. Patrick.
On Jan. 27, Alejandrina Quevedo-Hernandez attempted to enter the United States from Mexico through the vehicle lane at the Gateway International Port of Entry in Brownsville. Law enforcement noticed signs of tampering on the outside of the car and referred it to secondary for further inspection.
There, authorities searched her vehicle and discovered two aluminum-wrapped bricks of cocaine hidden inside the vehicle’s battery compartment.
The drugs weighed 5.2 pounds with an estimated street value of $65,000.
Sentencing has been set for Oct. 28 before U.S. District Judge Rolando Olvera. At that time, Quevedo-Hernandez faces a minimum of five years and up to life in federal prison and a possible $5 million maximum fine.
She has been and will remain in custody pending that hearing.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with assistance of Customs and Border Protection. Assistant U.S. Attorney Nikki Piquette is prosecuting the case.
Texas Entrepreneur Charged with Spending COVID Relief Funds on Improper Expenses Including Lamborghini and Strip ClubRead the Press Release
A Houston, Texas man has been taken into custody on allegations he fraudulently obtained more than $1.6 million in Paycheck Protection Program (PPP) loans, announced Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division and U.S. Attorney Ryan K. Patrick of the Southern District of Texas.
Lee Price III, 29, spent the money on luxury items, real estate and personal entertainment, according to the complaint unsealed today upon his arrest. He is expected to make his initial appearance before U.S. Magistrate Judge Sam S. Sheldon in Houston today.
Price is charged with making false statements to a financial institution, wire fraud, bank fraud and engaging in unlawful monetary transactions.
The complaint alleges Price was involved in a scheme to submit fraudulent PPP loan applications to federally insured banks and other lenders. The Small Business Administration (SBA) guarantees the loans for COVID-19 relief through the PPP under the Coronavirus Aid, Relief and Economic Security (CARES) Act.
Two fraudulent applications received funding, according to the complaint. Price Enterprises Holdings allegedly received more than $900,000, while a loan application listing 713 Construction was approved for over $700,000. The loan applications allegedly asserted both entities each had numerous employees and significant payroll expenses. According to the charges, however, neither entity has employees nor pays wages consistent with the amounts claimed in the loan applications. Further, the individual listed as CEO on the 713 Construction loan application died in April 2020, a month before the application was submitted, according to the complaint.
Price allegedly used the loan proceeds not for payroll expenses, but for lavish personal purchases, such as expending the loan money on a Lamborghini Urus, a Rolex watch and real estate transactions. He also allegedly spent thousands at strip clubs and other Houston night clubs. The complaint further alleges Price used a portion of the loan money to buy a 2020 Ford F-350 pickup truck.
The CARES Act is a federal law enacted March 29. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief the CARES Act provides is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The Federal Housing Finance Agency Office of the Inspector General (OIG), SBA-OIG and U.S. Postal Inspection Service - Houston Division conducted the investigation. Trial Attorneys Timothy A. Duree, Senior Attorney Advisor James Alexander and Matthew Grisier are prosecuting the case with the assistance of Assistant U.S. Attorney James McAlister.
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.
Mexican man charged with attempting to illegally export 92 gun magazines at Laredo bridgeRead the Press Release
LAREDO, Texas – A federal grand jury has returned an indictment against a 68-year-old Mexican man for smuggling goods from the United States, announced U.S. Attorney Ryan K. Patrick.
Juan Jose Jimenez-Guerra is charged with attempting to smuggle a total of 92 firearm magazines into Mexico, 48 of which were 7.62 caliber designed for an AK-47 type rifle. The remaining magazines were 5.56 caliber for an AR-15 rifle.
He was originally charged by criminal complaint and has remained in custody pending further proceedings. He is expected to appear for his arraignment before a U.S. magistrate judge in the near future.
On July 3, Jimenez-Guerra was attempting to leave the United States at the Lincoln Juarez Port of Entry Bridge in Laredo, according to the allegations. There, authorities allegedly observed two firearm magazines fall from his pickup truck. They conducted a more thorough inspection of his vehicle and discovered the nearly 100 magazines located in the bed of the truck, according to the charges.
If convicted, Jimenez-Guerra face up to 10 years in federal prison and a possible $250,000 maximum fine.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of Customs and Border Protection. Assistant U.S. Attorney Brandon Scott Bowling 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.Man faces federal charges after allegedly trying to smuggle meth inside shoesRead the Press Release
LAREDO, Texas – A federal grand jury has returned a two-count indictment against a 20-year-old Haltom City man for conspiring with others to import approximately 438.99 grams of meth from Mexico, announced U.S. Attorney Ryan K. Patrick.
Cesar Augusto Berlanga Jr. is charged with importing meth into the United States and one count of conspiracy. Originally charged by criminal complaint, he has remained in custody pending further criminal proceedings. He is expected to appear before a U.S. magistrate judge on the indictment in the near future.
On July 9, Berlanga applied for admission as a pedestrian into the United States from Mexico at the Gateway to the Americas International Bridge in Laredo, according to the charges. During primary inspection, an officer allegedly noticed Berlanga’s shoes appeared to be larger than normal. The charges allege that while being escorted for further inspection, Berlanga ran towards the streets of Laredo. Authorities quickly apprehended him approximately two blocks away after a brief foot chase, according to the allegations.
An inspection of Berlanga’s shoes allegedly revealed two plastic bags containing a substance that field tested positive for meth. The drugs weighed approximately 438.99 grams and have an estimated street value of $3073, according to the charges.
If convicted, Berlanga face a minimum of 10 years in federal prison and a possible $10 million maximum fine.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with assistance from Customs and Border Protection. Assistant 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.Local organizations receive combined $1 million to assist trafficking victimsRead the Press Release
HOUSTON – Santa Maria Hostel and Family Time Crisis Center have been awarded $500,000 each to provide safe, stable housing and appropriate services to victims of human trafficking, announced U.S. Attorney Ryan K. Patrick.
“Human trafficking is a scourge,” said Patrick. “Prosecuting the pimps and enablers is sometimes not the hardest part. The support services for the victims can be difficult to find, fund and maintain. Grants like these take care of the victims with a safe space where they can begin to put their life back together.”
The Department of Justice’s Office of Justice Programs (OJP) and its component, the Office for Victims of Crime (OVC), have issued the grants to provide six to 24 months of transitional or short-term housing assistance for trafficking victims. This includes rental, utilities or related expenses such as security deposits and relocation costs. The grants will also provide funding for support needed to help victims locate permanent housing, secure employment and occupational training and counseling. Family Time in Humble and Santa Maria Hostel in Houston are among 73 organizations receiving more than a combined $35 million to support housing services for human trafficking survivors.
Human trafficking offenses are among the most difficult crimes to identify, and the scope of human trafficking victimization may be much greater than the limited data reflects. The National Institute of Justice issued a new report that found the number of human trafficking cases captured in police reports may represent only a fraction of all such cases. Expanding housing and other services to trafficking victims remains a top Justice Department priority.
OVC hosted listening sessions and roundtable discussions with stakeholders in the field in 2018 and launched the Human Trafficking Capacity Building Center. From July 2018 through June 2019, 118 OVC human trafficking grantees reported serving 8,375 total clients including confirmed trafficking victims and individuals showing strong indicators of trafficking victimization.
A complete list of individual award amounts and jurisdictions that will receive funding is located HERE.
Principal Deputy Assistant Attorney General Katharine T. Sullivan directs OJP which provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at ojp.gov.
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.
Houston man indicted for exploiting toddlerRead the Press Release
HOUSTON – A 34-year-old resident of Houston is in custody for charges relating to sexual exploitation of a child, otherwise known as producing child pornography, announced U.S. Attorney Ryan Patrick.
A federal grand jury returned the indictment against Richard Reyes Trigo today for sexual exploitation of children as well as distribution and possession of child pornography. He is expected to make an appearance on the indictment in the near future.
He was originally charged by criminal complaint following suspicion he actively engaged in the sexual exploitation of a minor female under the age of two. He was taken into federal custody July 15 and made his initial appearance before U.S. Magistrate Judge Peter Bray, at which time he was ordered detained pending further criminal proceedings.
The charges allege Trigo engaged in conversations via a social media forum that individuals who have a sexual interest in children allegedly frequent. Trigo saw a post that contained terms commonly associated with the sexual exploitation of children and responded, according to the charges. During the course of the chats, Trigo allegedly claimed he was sexually active with a minor female and claimed he performed sexual acts on her. Trigo later sent four images he claimed were of the minor, some of which focused on her vagina, according to the charges.
If convicted of producing child pornography, Trigo faces a minimum of 15 and up to 30 years in federal prison, while the distribution and possession charges carry additional penalties up to 20 and 10 years, respectively. Each charge also carries a possible $250,000 maximum fine.
The FBI conducted the investigation.
Assistant U.S. Attorneys Sherri Zack and Sherin Daniel are prosecuting the case, which was brought as part of Project Safe Childhood(PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Houston entrepreneur charged with spending COVID relief funds on improper expenses including Lamborghini and strip clubRead the Press Release
HOUSTON – A Houston man has been taken into custody on allegations he fraudulently obtained more than $1.6 million in Paycheck Protection Program (PPP) loans, announced U.S. Attorney Ryan K. Patrick and Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division.
Lee Price III, 29, spent the money on luxury items, real estate and personal entertainment, according to the complaint unsealed today upon his arrest. He is expected to make his initial appearance before U.S. Magistrate Judge Sam S. Sheldon in Houston at 2:00 p.m. today.
Price is charged with making false statements to a financial institution, wire fraud, bank fraud and engaging in unlawful monetary transactions.
The complaint alleges Price was involved in a scheme to submit fraudulent PPP loan applications to federally insured banks and other lenders. The Small Business Administration (SBA) guarantees the loans for COVID-19 relief through the PPP under the Coronavirus Aid, Relief and Economic Security (CARES) Act.
Two fraudulent applications received funding, according to the complaint. Price Enterprises Holdings allegedly received more than $900,000, while a loan application listing 713 Construction was approved for over $700,000. The loan applications allegedly asserted both entities each had numerous employees and significant payroll expenses. According to the charges, however, neither entity has employees nor pays wages consistent with the amounts claimed in the loan applications. Further, the individual listed as CEO on the 713 Construction loan application died in April 2020, a month before the application was submitted, according to the complaint.
Price allegedly used the loan proceeds not for payroll expenses, but for lavish personal purchases, such as loan money on a Lamborghini Urus, a Rolex watch and real estate transactions. He also allegedly spent thousands at strip clubs and other Houston night clubs. The complaint further alleges Price used a portion of the loan money to buy a 2020 Ford F-350 pickup truck.
The CARES Act is a federal law enacted March 29. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief the CARES Act provides is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
The Federal Housing Finance Agency Office of the Inspector General (OIG), SBA-OIG and U.S. Postal Inspection Service - Houston Division conducted the investigation. Trial Attorneys Timothy A. Duree, James Alexander and Matthew Grisier are prosecuting the case with the assistance of Assistant U.S. Attorney James McAlister.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Four admit to conspiracy involving 31 kilograms of cocaineRead the Press Release
LAREDO, Texas – Three Mexican men and one U.S. citizen have entered guilty pleas for their part in a conspiracy to possess cocaine 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 today, 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, and, Viviano Hernandez, 41, a U.S. citizen residing in Mexico, pleaded guilty last month.
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 were 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.
U.S. District Judge Marina Garcia Marmolejo will impose sentencing for Rodriguez, Hernandez and Campos Oct. 28, while Villarreal is set for Dec. 1. At the time of their sentencing hearings, all men face up to life in prison. They have been and will remain in custody.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney David Fawcett is prosecuting the case.
Corpus Christi man charged with CARES Act unemployment fraudRead the Press Release
CORPUS CHRISTI, Texas - A 28-year-old man has been charged with mail fraud after allegedly receiving nearly $100,000 in fraudulent benefits, announced U.S. Attorney Ryan K. Patrick.
William Peck is expected to make his initial appearance today at 10:15 a.m. before U.S. Magistrate Judge Jason B. Libby.
The criminal complaint, filed July 29, alleges that Peck secured a Post Office (P.O.) box at the Portairs Station in Corpus Christi in May 2020. Within weeks, authorities noticed a large volume of Texas Workforce Commission (TWC) correspondence addressed to several different individuals, but at the same mailing address, according to the charges. The complaint further alleges claims for 85 different individuals had been submitted to TWC for Pandemic Unemployment Assistance (PUA) - all listing Peck’s P.O. Box as their address on file.
The investigation revealed several of those applications listed the same names, but had different Social Security (SS) numbers, according to the charges. Numerous applications also allegedly indicated a Texas residence. However, the investigation revealed SS numbers on many of the claims were actually associated with persons residing outside of Texas, according to the complaint.
TWC allegedly paid out approximately $95,000 for PUA claims listing Peck’s P.O. Box as the address for the purported claimants.
The Coronavirus Aid, Relief and Economic Security Act is a federal law enacted March 29. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic.
If convicted of mail fraud, Peck faces up to 20 years in federal prison and a possible $250,000 million maximum fine.
The Department of Labor - Office of the Inspector General, U.S. Postal Inspection Service and TWC conducted the investigation. Assistant U.S. Attorneys Andrew Swartz and Asha Natarajan are prosecuting the case.
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Two Houston-area tax preparers indictedRead the Press Release
HOUSTON – Two women have been charged in a 32-count indictment related to the false filing of tax returns, announced U.S. Attorney Ryan K. Patrick.
Rita Rogers made her initial appearances before U.S. Magistrate Judge Christina A. Bryan this afternoon, while Joi Lin Hunt was in federal court earlier this week.
A Houston grand jury returned the indictment July 16 alleging one count of conspiracy to defraud the United States and 31 counts of aiding and assisting in the preparation and filing of false income tax returns.
According to the indictment, Hunt and Rogers owned Caliente Xpress Tax Service, an income tax preparation company in Southwest Houston. There, they allegedly prepared returns for customers in tax years 2013-2016 which included false schedules on 1040 forms. These claimed company losses for customers who did not own any businesses and had no such expenses, according to the allegations.
The indictment further alleges Hunt and Rogers did not inform customers the Schedule Cs were being prepared on their behalf. Caliente Xpress allegedly charged fees ranging from $300 to $600 to prepare a tax return.
During the 2013-2016 tax years, Hunt and Rogers prepared in excess of 2,600 tax returns, according to the indictment.
If convicted, both face up to five years imprisonment and a possible $250,000 maximum fine.
IRS-Criminal Investigation conducted the investigation. Assistant U.S. Attorney Quincy L. Ollison 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.Drug delivery man handed 27-year sentence for selling methRead the Press Release
HOUSTON – A 26-year-old man has been ordered to federal prison following his conviction of conspiring to possess with the intent to distribute meth in the Houston area, announced U.S. Attorney Ryan K. Patrick.
Carlos Solorio aka Christian Hernandez, Santa Rosa, California, pleaded guilty Dec. 13, 2019.
Today, U.S. District Judge Sim Lake handed Solorio a 324-month sentence to be immediately followed by five years of supervised release. At the hearing, the court heard about Solorio’s significant activity related to drug trafficking – distribution in the Houston area, maintenance of a property to distribute the narcotics and remitting funds to Mexico in support of cartel activity. In handing down the sentence, Judge Lake noted that Solorio came to Houston from California to distribute narcotics and that his conduct warranted the significant sentence.
In May 2018, authorities conducted an undercover operation to purchase meth from a suspected narcotics distributor. The agent ordered three kilograms of the narcotics which were expected to be delivered to the Spring Branch area of Houston just north of the Katy Tollway. Solorio delivered the drugs.
Law enforcement then followed him back to his stash house. They conducted a search which resulted in the location and seizure of approximately 80 kilograms of meth.
Solorio has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration and High Intensity Drug Trafficking Areas task force conducted the investigation. Assistant U.S. Attorney Jason Corley prosecuted the case.
Disaster and pandemic scams target Texas residentsRead the Press Release
HOUSTON – Authorities are warning Texans of potential fraud following the landfall of Hurricane Hanna while continuing to remind the public of coronavirus-related scams, announced U.S. Attorney Ryan K. Patrick.
As residents continue to deal with the issues surrounding COVID-19, some have the added burden of surviving in the aftermath of Hurricane Hanna which made landfall in South Texas along the Coastal Bend area over the weekend.
The U.S. Attorney’s Office works with a multitude of federal, state and local agencies to address the varied threats resulting from natural disasters such as Hurricane Hanna as well as scams related to national crises. These disasters often bring out the best in human compassion and spirit, but can also lead to unscrupulous individuals and organizations taking advantage of those in need of and/or providing government services. Examples of typical illegal activity include:
- Impersonation of federal law enforcement officials
- Identity theft
- Fraudulent claims to insurance companies and federal government
- Fraudulent activity related to donations and charitable giving
- Price gouging
- Theft, looting and other violent crime
“Along the Gulf Coast we are well practiced in disaster fraud,” said Patrick. “Anyone who lies, cheats or steals to receive federal benefits they would not otherwise get, will be prosecuted by my office.”
The added issues surrounding the coronavirus pandemic compounds the possible instances of fraud and other types of illegal activity. In addition to the economic payment scams previously reported, several other fraudulent schemes involve masks, personal protection equipment (PPE) and other COVID-19 related items. The public is reminded to exercise increased due diligence and caution when dealing with new suppliers or vendors, especially when using a third-party broker.
As demand for PPE increases, scammers may advertise equipment they do not actually have in attempts to make a quick profit. These PPE products may be counterfeit and mislabeled, and some may not exist at all. Some fraudsters reach out directly to consumers and government entities through email or social media to push their products. Red flags that a seller may be engaging in a scam include:
- Unusual payment terms
- Last-minute price changes
- Last-minute excuses for delay in shipment
- Unexplained source of a large quantity of material
- Evidence of re-packaging or mislabeling
Members of the public are encouraged to contact The National Center for Disaster Fraud (NCDF) to report all types of disaster and COVID-19 fraud. The Disaster Fraud Hotline is 1-866-720-5721 and is staffed by a live operator 24 hours a day, seven days a week. Members of the public can also see additional resources and information HERE, where they can also submit complaints of fraud, waste, abuse or mismanagement related to any man-made or natural disaster and criminal activity related to COVID-19.
In addition, Texans can contact the Office of the Attorney General’s toll-free complaint line at (800) 621-0508 or file a complaint online if they have encountered scams or price gouging. There are ongoing federal and state prohibitions on charging exorbitant prices for PPE during this time of national emergency.
The NCDF is the result of a partnership between the Department of Justice and various law enforcement and regulatory agencies to form a national coordinating agency within the Criminal Division of the Department of Justice to improve and further the detection, prevention, investigation, and prosecution of fraud related to natural and man-made disasters, and to advocate for the victims of such fraud.
It was established in 2005 in the wake of Hurricane Katrina, when billions of dollars in federal disaster relief poured into the Gulf Coast region. It is the national coordinating agency for all man-made and natural disasters with Gulf Coast headquarters located in Baton Rouge, Louisiana. Since 2005, the NCDF has received over 100,000 complaints.
Corporation insider pleads guilty to wire fraudRead the Press Release
CORPUS CHRISTI, Texas – A 41-year-old San Antonio man has admitted to wire fraud that resulted in a loss of $1,878,615.84, announced U.S. Attorney Ryan K. Patrick.
Robert Morales Munguia Jr. knowingly submitted false work orders to his company in order to receive gifts and payments from outside vendors. He also admitted he knew the work would never be completed.
From Feb. 27, 2015, until April 12, 2018, Munguia worked as an environmental specialist at a Texas-based corporation. During that time, he conspired with outside contractors to bill for 68 false work orders that were never completed. In return, Munguia received various gifts and cash.
As a result of the scheme, the company paid almost $2 million.
Munguia was permitted to remain on bond pending sentencing, set for Nov. 6, before U.S. District Judge David Morales. At that time, Munguia faces up to 20 years in federal prison and a possible $250,000 maximum fine.
The Secret Service conducted the investigation. Assistant U.S. Attorney Jeremy C. Fugate is prosecuting the case.
Strip mall property owners settle ADA violationsRead the Press Release
HOUSTON – The owners of several Houston-area properties have settled allegations under Title III of the Americans with Disabilities Act (ADA) to remove barriers and greatly improve physical accessibility, announced U.S. Attorney Ryan K. Patrick.
The announcement comes as the nation commemorates the 30th anniversary of the passage of the ADA on July 26.
Under the ADA, persons with disabilities shall be afforded the opportunity to participate in or benefit from the goods, services, facilities, privileges, advantages or accommodations equal to that afforded to other individuals. Title III mandates that no individual shall be discriminated against on the basis of a disability by any person who owns, leases or operates a place of public accommodation.
Strip shopping centers are places of public accommodation. As such, the owners are subject to Title III requirements.
To date, five such property owners have entered into settlements to remedy all violations the United States has identified and bring them into compliance with the ADA. Those include 11120-A North Freeway which Hana Assets Ltd. owns as well as the SS Village LLC-owned properties known as Fondren Southwest Village-East and Fondren Southwest Village-West. These actions add to the two other previous announcements regarding 5101 Bingle and 10092 Veterans Memorial Dr.
Investigators continue to conduct on-site inspections to evaluate compliance with the ADA. Those found to be in violation have the option of entering into voluntary settlement agreements in which they agree to modify their property to meet ADA requirements. Property owners who refuse to do so could face a civil lawsuit.
The United States Attorney is authorized to commence a civil action when there is a belief discrimination exists, seeking full compliance with the ADA, including requiring the owners and operators of places of public accommodations to remedy the violations and pay civil monetary penalties.
Assistant U.S. Attorneys Keith Edward Wyatt and Annalisa Cravens are handling the matters with the assistance of Paralegal Specialist Raymond Babauta.
Local man in custody for bomb threatRead the Press Release
BROWNSVILLE, Texas – A 73-year-old resident of La Feria has been charged with making a threat to bomb the Veteran’s Administration (VA) Hospital in Harlingen, announced U.S. Attorney Ryan K. Patrick.
Dennis Deane Dailey will appear for his detention hearing Aug. 11 before U.S. Magistrate Judge Ronald Morgan.
On July 20, Dailey allegedly called the VA suicide prevention hotline expressing he was having suicidal thoughts. He claimed to be angry and that he planned to shoot employees at the VA hospital in Harlingen, according to the charges. Dailey also allegedly stated he planned to kill people between the ages of 18 and 30 because they are spreading COVID-19. The criminal complaint further alleges Dailey claimed to have “many guns and bombs” and would blow up the VA and kill whoever needed to be killed.
Federal authorities arrested Dailey July 22. He made his initial appearance the following day, at which time he was ordered into custody pending further criminal proceedings.
If convicted, Dailey faces up to 10 years in federal prison and a possible $250,000 maximum fine.
The FBI conducted the investigation. Assistant U.S. Attorney Oscar Ponce 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.Leaders of Houston stash house ring head to prisonRead the Press Release
HOUSTON – Three men have been ordered to federal prison following their convictions for transporting and harboring illegal aliens in locked and boarded-up trailers in Houston, announced U.S. Attorney Ryan K. Patrick along with Special Agent in Charge Mark Dawson of Homeland Security Investigations (HSI) – Houston.
Albino Vargas-Hernandez, 49, a Mexican citizen who resided in Houston, and Rene Camacho, 47, Houston, pleaded guilty Dec. 12, 2019, to conspiracy to transport and harbor illegal aliens. A third man – Mexican national Hiram Lamarca-Gonzalez, 22, who also resided in Houston - entered his guilty plea Dec. 4, 2019.
Today, U.S. District Judge Alfred H. Bennett handed Camacho a 36-month sentence to be immediately followed by two years of supervised release. Vargas-Hernandez and Lamarca were previously sentenced to 42 and 36 months, respectively. At the hearings, the court heard evidence as to the extensive nature of the smuggling venture which included multiple drivers to smuggle aliens, money transmitters and smuggling ledgers documenting over $1.4 million in smuggling proceeds. While imposing the sentences, Judge Bennett noted this was a serious large-scale smuggling operation. Not U.S. citizens, Vargas and Lamarca are expected to face removal proceedings following their incarceration.
At Camacho’s sentencing, the court also received evidence about a residence in North Houston purchased using $130,000 in proceeds from the conspiracy. Judge Bennett ordered the residence forfeited to the United States. Previous forfeitures include $224,774.86 in cash and cashier’s checks.
“These three individuals operated a vast human smuggling network that preyed on the desperation of foreign nationals hoping to get into the United States,” said Dawson. “In just the last year, they are responsible for smuggling more than 1,000 people into the country. With today’s sentencing, we have sent a resounding message that HSI is committed to aggressively target human smugglers and smuggling organizations who seek to undermine our nation’s immigration laws and victimize people for profit.”.
The investigation revealed that from approximately July 9, 2018, through on or about Aug. 22, 2018, multiple suspected aliens had arrived and departed trailers in Houston, which were locked and had boards on the windows. On several occasions, Vargas left his residence, picked up illegal aliens from the stash house and delivered them to others.
Law enforcement obtained search warrants on the Vargas residence as well as the stash houses. During that time, authorities found Vargas and Camacho inside one of the trailers along with 12 undocumented aliens. The aliens identified Vargas and Camacho as leaders of the smuggling organization, in charge of documenting alien information in ledgers and collecting payments for the those smuggled into the country. They also recovered multiple firearms, “pollo” lists (alien smuggling ledgers keeping track of alien and payment information), money service wire receipts and approximately $224,000 in cash.
Authorities also arrested Lamarca for guarding the aliens at the stash house.
Vargas and Lamarca have been and will remain in custody. Camacho was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney (AUSA) Richard Bennett prosecuted the case. AUSA Stephanie Bauman handled the forfeiture matters.
USAO employee indicted for conspiring to obstruct justiceRead the Press Release
HOUSTON – A federal grand jury sitting in Austin has returned a six-count indictment against a 31-year-old paralegal specialist with the U.S. Attorney’s Office (USAO) for the Western District of Texas, announced U.S. Attorney Ryan K. Patrick of the Southern District of Texas.
Jennifer Loya is charged with drug trafficking crimes, conspiring to obstruct justice and making a false statement to federal law enforcement officers. Also charged are Roland Gustamante, 30, his wife Kimberly Loya, 27, and Nathan Lopez, 27. All are from San Antonio.
Gustamante allegedly imported drugs from Mexico, sold them in the San Antonio area and transported proceeds back to suppliers in Mexico. Kimberly Loya served as a courier for Gustamante’s drug trafficking organization, according to the indictment, while Lopez was an associate of the Gustamante drug trafficking organization. Jennifer Loya is Kimberly’s sister.
Gustamante, Lopez and Kimberly Loya are charged with conspiring to distribute heroin and meth. Gustamante is also charged with possessing with the intent to distribute meth and with engaging in an international money laundering conspiracy with Kimberly Loya.
According to the indictment, Jennifer Loya worked in the San Antonio USAO. There, she allegedly learned confidential law enforcement information related to federal drug trafficking investigations including the identity of investigation targets, cooperating witnesses and defendants as well as planned dates for charging and arresting defendants. The indictment alleges she shared this information with her sister who then relayed it to her husband. Gustamante used the information to evade law enforcement and to warn his fellow drug traffickers about impending law enforcement actions, according to the charges,
Federal authorities allegedly confronted Jennifer Loya about her activities, at which time she allegedly concealed that she had previously revealed to her sister that Gustamante was under federal investigation for drug trafficking.
All had previously been charged by criminal complaint. Gustamante was ordered into custody, while the Loya sisters were premitted release upon posting bond. They are all expected to appear again before a U.S. magistrate judge in San Abntonio the near future.
If convicted, all four face a minimum of 10 years and up to life in prison for the drug trafficking charges. In addition, Gustamante and Kimberly Loya face up to 20 years for the international money laundering conspiracy. Jennifer Loya faces up to five years for the conspiracy to obstruct justice and for the false statement charge.
The FBI, Drug Enforcement Administration and Department of Justice - Office of Inspector General conducted the investigation. Assistant U.S. Attorney Robert S. Johnson is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Ukrainian men plead guilty to conspiracy and trafficking counterfeit cancer and hepatitis drugsRead the Press Release
HOUSTON – Two citizens of Ukraine have admitted they conspired to smuggle and distribute counterfeit cancer and hepatitis drugs into the United States, announced U.S. Attorney Ryan K. Patrick and Acting Assistant Attorney General Brian C. Rabbitt.
Maksym Nienadov, 36, is the owner of the Ukrainian-based company Healthy Nation. He and his co-conspirator and employee - Volodymyr Nikolaienko, 33 - pleaded guilty today to conspiracy, trafficking in counterfeit drugs and smuggling goods into the United States. Nienadov also admitted to introducing misbranded medicine into the United States.
In June 2018, undercover U.S. authorities began communicating with Nienadov about the illegal sale of Keytruda. This prompted a months-long exchange which also involved Nikolaienko and resulted in the unlawful sale of counterfeit or unapproved Keytruda, Abraxane and Epclusa. Neither Nienadov nor Nikolaienko are medical doctors, pharmacists or licensed pharmaceutical wholesalers in the United States and did not have authorization to sell the drugs.
Merck & Co. manufactures Keytruda, a medicine to treat cancer, while Gilead Sciences Inc. manufactures Epclusa, a prescription drug for the treatment of hepatitis-C. Celgene Corporation is a wholly-owned subsidiary of Bristol Myers Squibb and manufactures the oncology product Abraxane. In their legitimate form, the Food and Drug Administration (FDA) approved all three drugs for distribution in the United States.
During the undercover investigation, law enforcement received Nienadov’s banking information, which included the name “Maksim Nenadov” and his Ukrainian bank account number. Authorities transferred $2,400 to his bank account for the purchase of the purported Keytruda. Soon after, they received a shipment from “Maxim Nenadov” which contained two boxes represented to contain Keytruda. However, the items were sent to Merck for testing and determined to be counterfeit.
Authorities then negotiated the purchase of more Keytruda as well as an another medication, Abraxane. The online messaging and email conversations resulted in a $3,400 undercover payment to Nienadov for the purchase of both drugs. On July 30, 2018, “Maxim Nenadov” sent two boxes of 50 mg purported Keytruda and two boxes of supposed Abraxane 5 mg/ml to undercover agents. Merck and Celgene performed analyses and confirmed the packaging and medication to be counterfeit.
In late 2018, law enforcement also negotiated the undercover purchase of two boxes of purported Epclusa tablets from Nienadov and Nikolaienko for $6,000. Gilead identified the packaging and contents as counterfeit.
Nienadov and Nikolaienko were taken into custody April 18, 2019, after they arrived in the United States from Ukraine to discuss future unlawful shipments of pharmaceuticals.
Sentencing has been set for Nov. 4 before Chief U.S. District Judge Lee H. Rosenthal. At that time, Nienadov and Nikolaienko face up to 20 years in prison and a possible $5 million fine. Both men will remain in custody pending that hearing.
Immigration and Customs Enforcement’s Homeland Security Investigations and FDA’s Office of Criminal Investigations conducted the investigation.
Senior Trial Attorney Jeffrey Pearlman of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorney Sebastian Edwards of the Southern District of Texas are prosecuting the case. Former CCIPS Senior Trial Attorney Kebharu Smith assisted in the prosecution. In addition, the Criminal Division’s Office of International Affairs provided substantial assistance.
DHS employee charged with fraudRead the Press Release
HOUSTON – A 46-year-old Laredo man has been charged with using the personal information of deceased individuals in online loan scam, announced U.S. Attorney Ryan K. Patrick.
David Allen Parker made his initial appearance today, at which time the indictment was unsealed. He will remain in custody pending a hearing set for July 24.
The charges allege that from approximately 2018 through July 2019, Parker devised a scheme to defraud online lending institutions. Parker allegedly applied for lines of credit in excess of $33,000 using stolen personal identifying information belonging to deceased individuals. Parker submitted the loan applications containing misappropriated personal identifying information through the internet to lending institutions in New York, according to the charges.
If convicted of wire fraud, Parker faces up to 20 years in federal prison and a possible $250,000 maximum fine.
The FBI - Dallas, Abilene and San Antonio Divisions, DHS - Office of Inspector General and the Abilene Police Department conducted the investigation.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Texas Man Charged with COVID Relief FraudRead the Press Release
A Texas man was taken into custody on allegations he fraudulently obtained more than $1.1 million in Paycheck Protection Program (PPP) loans, announced Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division and U.S. Attorney Ryan K. Patrick for the Southern District of Texas.
Joshua Thomas Argires, 29, of Houston, Texas, is charged in a criminal complaint, unsealed Monday upon his arrest, with making false statements to a financial institution, wire fraud, bank fraud and engaging in unlawful monetary transactions. He made his initial appearance Monday before U.S. Magistrate Judge Peter Bray.
Argires allegedly perpetrated a scheme to file two fraudulent loan applications seeking more than $1.1 million in forgivable loans. The Small Business Administration (SBA) guarantees the loans for COVID-19 relief through the PPP under the Coronavirus Aid, Relief and Economic Security (CARES) Act.
The complaint alleges Argires submitted two fraudulent PPP loan applications to federally insured banks. One of these applications was submitted on behalf of an entity called Texas Barbecue; the other was filed on behalf of a company called Houston Landscaping. Argires allegedly claimed these two companies had numerous employees and hundreds of thousands of dollars in payroll expenses.
According to the complaint, neither Texas Barbecue nor Houston Landscaping has employees or pays wages consistent with the amounts claimed in the PPP loan applications. The complaint further asserts that both of these loans were funded, but that none of the funds were used for payroll or other expenses authorized under the PPP. Rather, the funds received on behalf of Texas Barbecue were invested in a cryptocurrency account, while the funds obtained for Houston Landscaping were held in a bank account and slowly depleted via ATM withdrawals, according to the charges.
The CARES Act is a federal law enacted March 29. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief the CARES Act provides is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The Federal Housing Finance Agency Office of the Inspector General (OIG), SBA OIG and U.S. Postal Inspection Service’s Houston Division conducted the investigation. Trial Attorney Timothy A. Duree of the Criminal Division’s Fraud Section and Assistant U.S. Attorney James McAlister for the Southern District of Texas are prosecuting the case.
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.
Another Houston man charged with COVID relief fraudRead the Press Release
HOUSTON - A local man has been taken into custody on allegations he fraudulently obtained more than $1.1 million in Paycheck Protection Program (PPP) loans, announced U.S. Attorney Ryan K. Patrick and Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division.
Joshua Thomas Argires, 29, Houston, is charged in a criminal complaint with making false statements to a financial institution, wire fraud, bank fraud and engaging in unlawful monetary transactions.
Argires allegedly perpetrated a scheme to file two fraudulent loan applications seeking more than $1.1 million in forgivable loans. The Small Business Administration (SBA) guarantees the loans for COVID-19 relief through the PPP under the Coronavirus Aid, Relief and Economic Security (CARES) Act.
The complaint alleges Argires submitted two fraudulent PPP loan applications to federally insured banks. One of these applications was submitted on behalf of an entity called Texas Barbecue; the other was filed on behalf of a company called Houston Landscaping. Argires allegedly claimed these two companies had numerous employees and hundreds of thousands of dollars in payroll expenses.
According to the complaint, neither Texas Barbecue nor Houston Landscaping has employees or pays wages consistent with the amounts claimed in the PPP loan applications. The complaint further asserts that both of these loans were funded, but that none of the funds were used for payroll or other expenses authorized under the PPP. Rather, the funds received on behalf of Texas Barbecue were invested in a cryptocurrency account, while the funds obtained for Houston Landscaping were held in a bank account and slowly depleted via ATM withdrawals, according to the charges.
The CARES Act is a federal law enacted March 29. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief the CARES Act provides is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
The Federal Housing Finance Agency - Office of the Inspector General (OIG), SBA - OIG and U.S. Postal Inspection Service’s Houston Division conducted the investigation. Trial Attorney Timothy A. Duree of the Criminal Division’s Fraud Section and Assistant U.S. Attorney James McAlister for the Southern District of Texas are prosecuting the case.
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.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Three indicted on fentanyl-related chargesRead the Press Release
HOUSTON – Two Texas men are set to appear in federal court on charges of drug distribution that resulted in an overdose, announced U.S. Attorney Ryan K. Patrick.
A federal grand jury returned the nine-count superseding indictment against Joseph Raymond Weeks, 33, Katy, and Rhett Dwayne Farrell, 40, Pinehurst, Wednesday, July 1. They are expected to appear for their arraignment before U.S. Magistrate Judge Dena H. Palermo today at 2 p.m. Also charged is Jessica Wickman-Cano, 35, Katy, who is set to appearance today.
All were initially charged by criminal complaint on related offenses. They appeared before a U.S. magistrate judge who had ordered Weeks and Farrell into custody pending further criminal proceedings. Wickman-Cano was also initially remanded to custody, but was later granted release upon posting bond.
The new charges in the superseding indictment stem from an investigation into the drug overdose of a Montgomery County man. On Feb. 25, law enforcement and emergency personnel responded to an individual who was passed out in his vehicle, according to the charges. He was allegedly unresponsive, and they had to administer NARCAN to revive him.
The indictment alleges the man had overdosed on fentanyl and had purchased it from Farrell. Weeks was allegedly the source of supply.
The nine-count superseding indictment charges Weeks and Farrell with two counts each of conspiracy and possession with intent to distribute controlled substances which resulted in serious bodily injury. Additionally, Weeks and Wickman are charged with one count of possession with intent to distribute a controlled substance and one count of conspiracy to do the same, while Farrell is charged with two additional counts of possession with intent to distribute a controlled substance. Weeks is also charged with one count of being a felon in possession of a firearm.
If convicted, Weeks and Farrell face up to life in prison, while Wickman faces up to 20 years. All three could also be required to pay up to $1 million in fines.
Texas Department of Public Safety conducted the investigation with the assistance of the Drug Enforcement Administration, Montgomery County Narcotics Enforcement Team and police departments in Katy and Houston. Assistant U.S. Attorneys Jimmy Leo, Michael Day and Christine Lu 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.
Driver sentenced in deadly Robstown crashRead the Press Release
CORPUS CHRISTI, Texas - The lead defendant convicted for his role in the smuggling conspiracy that left six people dead in June 2019 has been ordered to federal prison, announced U.S. Attorney Ryan K. Patrick.
Mexican citizen Ivan Dario Puga-Moreno, 31, pleaded guilty Feb. 2 to conspiracy to transport undocumented aliens into the United States causing death or serious bodily injury.
Today, U.S. District Judge Nelva Gonzales Ramos upwardly departed from the U.S. Sentencing guidelines and ordered him to serve a total of 120 months in prison. Not a U.S. citizen, he is expected to face removal proceedings following the term of imprisonment. At the hearing, the court heard Puga-Moreno was the driver of the vehicle that caused the death of six and serious bodily injury of 10 more. After the crash, Puga-Moreno refused to call 911 for assistance. Instead, he fled the scene.
On June 5, 2019, authorities discovered a wrecked Chevrolet Suburban in a ditch in Robstown. Six people were found deceased at the scene with 10 more requiring hospitalization due to their significant injuries. Puga-Moreno had been attempting to smuggle a total of 18 undocumented immigrants with brush guide Agustin Gutierrez-Gonzalez who was from his hometown in Mexico. Further investigation revealed he had fled the scene of the accident with the assistance of Gutierrez-Gonzalez, 33, Elena Ruiz, 35, of Corpus Christi, and Mayra Chaver, 32, of Honduras.
At the time of his plea, Puga-Moreno admitted he was driving the vehicle and was evading police. He fled to Houston in an attempt to avoid arrest, but was subsequently apprehended June 6
Ruiz, Chaver and Gutierrez-Gonzalez also pleaded guilty, admitting they helped Puga-Moreno flee and evade arrest after the crash. They are set for sentencing at a later date.
Immigration and Customs Enforcement’s Homeland Security Investigations, Border Patrol, Corpus Christi Police Department and Nueces County Sherriff’s Office conducted the investigation.
Assistant U.S. Attorney Jeremy Carl Fugate is prosecuting the case.
Mexican man convicted of importing over two tons of marijuanaRead the Press Release
LAREDO, Texas – A 30-year-old resident of Nuevo Laredo, Tamaulipas, Mexico, faces up to life in prison after admitting to conspiracy to import and importing more than 1,000 kilograms of marijuana, announced U.S. Attorney Ryan K. Patrick.
Ruben Maldonado-Espino drove a semi-truck and trailer through the World Trade Bridge near Laredo on May 7. Authorities conducted an x-ray examination of the vehicle which revealed anomalies in the trailer.
Law enforcement began to open the doors, at which time Maldonado-Espino admitted he knew drugs were in the trailer. He claimed a Mexican drug cartel was holding his wife hostage and forced him to smuggle the narcotics.
However, authorities contacted his wife who appeared to be calm and not under distress. Maldonado-Espino eventually admitted the story was a lie he was told to give to law enforcement.
The 198 bundles of marijuana found in the trailer weighed approximately 4,601 pounds with an estimated street value of $875,000.
U.S. District Judge Marina Garcia Marmolejo will impose sentencing Oct. 28. At that time, Maldonado-Espino faces a minimum of 10 years and up to life in federal prison. He has been and will remain in custody pending that hearing.
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.