Southern District of Texas
Press releases recorded for this federal judicial district.
Local man who attempted to entice 50 boys gets significant prison sentenceRead the Press Release
CORPUS CHRISTI, Texas – A 31-year-old Corpus Christi man has been ordered to federal prison for producing child pornography via social media, announced U.S. Attorney Ryan K. Patrick.
Lucas Antonio Nord pleaded guilty Nov. 5, 2019.
Today, U.S. District Judge Nelva Gonzales Ramos ordered Nord to serve a 200-month sentence. At the hearing, the court heard how Nord used social media to contact minor children for the purposes of having sexual encounters and for requesting nude images of them. Before handing down the sentence, the court heard about two additional victims in other States.
Nord was further ordered to pay $3000 in restitution to a known victim and will serve the rest of his life on supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. He will also be ordered to register as a sex offender.
In April 2019, law enforcement learned Nord had contact with a 14-year-old minor living in Florida. He had asked the child to send him photographs of his genitalia via social media messaging.
Nord told authorities he also had actual physical sexual contact with at least two children and has attempted to solicit more than 50 boys on various social media platforms.
Nord sent the children photographs and videos of his own genitalia and sexual acts as well as videos containing commercially-produced pornography.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Corpus Christi Police Department – Internet Crimes Against Children Task Force and Immigration and Custom’s Enforcement’s Homeland Security Investigations conducted the investigation.
Assistant U.S. Attorney Brittany L. Jensen 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.
Mexican man sentenced for role in smuggling attempt that led to rollover accidentRead the Press Release
LAREDO, Texas – A 30-year-old Mexican national has been ordered to federal prison for his involvement in a conspiracy to transport undocumented aliens, announced U.S. Attorney Ryan K. Patrick.
Ruben Ernesto Mendoza-Zapata pleaded guilty Jan. 7.
Today, U.S. District Judge Marina Garcia Marmolejo handed Mendoza-Zapata a 41-month term of imprisonment. Not a U.S. citizen, he is expected to face removal proceedings after serving his sentence.
On Oct. 7, 2019, authorities observed a group of individuals crossing from the Mexican side of Falcon Lake via boat and entering a red Ford Explorer in the United States. They located the SUV and attempted to get behind it. However, the driver - later identified as Mendoza-Zapata - fled the scene at a high rate of speed. During the pursuit, Mendoza-Zapata tried rounding a curve, but rolled the vehicle several times.
Law enforcement secured the scene and rescued the occupants, one of whom was pinned underneath the vehicle. At the time of the rollover, a 6-year-old boy was also in the SUV.
Mendoza-Zapata has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of Border Patrol. Assistant U.S. Attorney David Fawcett prosecuted the case.
Indicted young Laredoan charged with federal firearms violationsRead the Press Release
LAREDO, Texas – A federal grand jury has returned an indictment against a 19-year-old Laredo resident for illegally possessing a firearm while under an active domestic violence protection order and possessing a firearm while under indictment, announced U.S. Attorney Ryan K. Patrick.
Mario Alberto Salazar is expected to appear for his arraignment next week before a U.S. magistrate judge in Laredo.
The criminal complaint originally filed in the case alleges Salazar was under an active protective order which prohibited him from possessing a firearm. However, he allegedly assaulted a woman March 31, 2020 – striking her in the left arm and hip with the firearm. The charges also allege he pointed a firearm at her feet while threatening to shoot her.
According to the allegations, authorities test fired the weapon and entered the casings into the National Integrated Ballistic Information Network (NIBIN) which led to a match to a shooting incident in Laredo on March 23. On that date, Salazar allegedly discharged a firearm at a vehicle as it was driving through an intersection. He was still subject to the domestic violence order at that time, according to the charges.
“NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms,” said Special Agent in Charge Fred Milanowski of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
The criminal complaint also alleges Salazar is under indictment in Webb County for engaging in organized criminal activity and unlawful restraint and is prohibited under federal law from possessing a firearm.
If convicted of either charge, Salazar faces up to 10 years in federal prison and a possible $250,000 maximum fine.
ATF conducted the investigation with the assistance of the Laredo Police Department. Assistant U.S. Attorney April Ayers-Perez is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Houston-area cardiologist settles allegationsRead the Press Release
HOUSTON – Advanced Cardiovascular Care Center P.A. and its owner and administrator have agreed to pay $400,000 to resolve allegations they violated the False Claims Act (FCA), announced U.S. Attorney Ryan K. Patrick.
Owner Dr. Annie T. Varughese, 57, and administrator Babu Varughese, 64, both of Spring, conducted business in three clinics located in Houston, Conroe and The Woodlands.
From June 4, 2013, through June 4, 2016, the company submitted claims to Medicare for cardiology services. These included cardiac external counterpulsation treatments, transthoracic echocardiography studies and duplex scans that were not reasonable and medically necessary. Therefore, they failed to meet the Medicare coverage and documentation requirements.
Further, patient files lacked documentation that Varughese directly supervised the cardiology services as Medicare requires. The company billed Medicare for services under Varughese’s provider number when she was not in the office and, at times, not even in the United States.
“Putting financial gain ahead of medical necessity undermines the integrity of the Medicare program,” said Special Agent in Charge Miranda Bennett of the Department of Health and Human Services – Office of Inspector General (DHHS-OIG). “We will continue investigate and hold accountable those who submit false claims to federal health care programs.”
“The largest area of fraud committed against the federal government today is by unethical healthcare providers who inflate or fabricate Medicare or Medicaid bills,” said Special Agent in Charge Perrye K. Turner of the FBI. “Billing Medicare for services that are not necessary and/or not provided constitutes fraud. American taxpayers are the ones who ultimately bear the financial burden created by this, as healthcare fraud translates into higher premiums and out-of-pocket expenses for consumers. We ask for the public's help in reporting and exposing dishonest healthcare providers."
The investigation began in 2016 after a former cardiologist filed a sealed lawsuit under the qui tam provisions of the FCA. It allows private citizens with knowledge of fraud to bring a lawsuit on behalf of the United States. They may be entitled to a share of the proceeds of the action or any settlement.
DHHS-OIG and FBI conducted the investigation. Assistant U.S. Attorney Julie Redlinger handled the matter.
The claims resolved by this agreement are allegations only, and there has been no determination of liability.
Mexican man sentenced for transporting $250K worth of methRead the Press Release
LAREDO, Texas – A 48-year-old resident of Nuevo Laredo, Mexico, has been ordered to federal prison for conspiracy to possess with intent to distribute 32 kilograms of meth, announced U.S. Attorney Ryan K. Patrick.
Ramces Chavez-Gomez, pleaded guilty Jan. 7.
Today, U.S. District Judge Marina Garcia Marmolejo ordered Chavez-Gomez to serve a total of 72 months in prison. Not a U.S. citizen, he is expected to face deportation proceedings following his sentence. At the hearing, the court considered statements regarding Chavez-Gomez’s training and practice as a doctor in Mexico. In handing down the sentence, the court noted it was a shame Chavez-Gomez was trained to help and heal people, yet chose to bring poison into our country.
On Oct. 5, 2019, Chavez-Gomez attempted to drive his SUV through the Laredo North Border Patrol (BP) checkpoint on Interstate 35. During initial inspection, a K-9 alerted to the presence of narcotics in the rear of the vehicle. An x-ray scan then revealed a hidden compartment near its rear seats.
Authorities further inspected the vehicle and found the compartment under the carpeting in the cargo area. There, they found 20 bundles of meth that weighed approximately 32 kilograms.
The drugs have an estimated street value of more than $250,000.
Chavez-Gomez has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of Border Patrol. Assistant U.S. Attorney Paul Harrison prosecuted the case.
Local marijuana trafficker imprisoned for drug schemeRead the Press Release
LAREDO, Texas – A 32-year-old Laredo resident has been ordered to federal prison following his conviction for conspiring with intent to distribute more than 100 kilograms of marijuana, announced U.S. Attorney Ryan K. Patrick.
Agustin Martinez III pleaded guilty April 2, 2019.
Today, U.S. District Judge Marina Garcia Marmolejo sentenced Martinez to serve 60 months in federal prison to be immediately followed by three years of supervised release. He was further ordered to pay $2400 in restitution. In handing down the sentence, the court noted Martinez had created a dangerous risk to the community by engaging in a high speed chase.
On Jan. 12, 2019, Martinez planned to transport narcotics in a red GMC pickup truck. Authorities noticed the suspicious vehicle and immediately attempted to conduct a traffic stop after they spotted it leaving a Laredo ranch.
However, Martinez did not pull over which lead to a high-speed chase. It ended after he crashed into two tractor-trailers in Laredo.
Law enforcement immediately took him into custody. During the search of the vehicle, authorities found approximately 315 kilograms of marijuana with a value of $150,000.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigation with the assistance of Border Patrol. Assistant U.S. Attorney Francisco J. Rodriguez is prosecuting the case.
Katy anesthesiologist pays to settle allegations arising from electro-acupuncture device billingRead the Press Release
HOUSTON – A 54-year-old anesthesiologist from Katy has paid $100,000 to resolve allegations that he falsely billed Medicare for the use of acupuncture devices, announced U.S. Attorney Ryan K. Patrick.
From Nov. 1, 2018, to March 31, 2019, Dr. Jaime Robledo 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, Robledo 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.
“To maintain the trust of beneficiaries in their care, it is imperative that medical professionals bill accurately for the services provided,” said Special Agent in Charge Miranda Bennett of the Department of Health and Human Services - Office of Inspector General (DHHS-OIG). “We will continue working with our law enforcement partners to hold accountable those who seek to enrich themselves by submitting false claims to federal health programs.”
DHHS-OIG 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.
Mexican man sentenced for importing meth stuffed inside door panelsRead the Press Release
LAREDO, Texas – A 48-year-old Matamoros, Mexico, resident has been ordered to federal prison following his conviction of conspiracy to import 10.2 kilograms of meth into the country, announced U.S. Attorney Ryan K. Patrick.
J. Guadalupe Martinez-Montelongo pleaded guilty March 3.
Today, U.S. District Judge Marina Garcia Marmolejo ordered Martinez-Montelongo to serve a total of 63 months in prison. Not a U.S. citizen, he is expected to face deportation proceedings following his incarceration.
On Dec. 10, 2019 Martinez-Montelongo applied for entry into the United States at the Lincoln Juarez Bridge. Authorities conducted an investigation of the SUV he was driving, at which time a K-9 alerted to the presence of narcotics in the vehicle’s doors. An x-ray scan further revealed bundles of narcotics stuffed behind the door panels which field tested positive for meth.
The bundles weighed approximately 23 pounds and had a street value of approximately $73,000.
Martinez-Montelongo has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of Customs and Border Protection. Assistant U.S. Attorney Paul Harrison prosecuted the case.
Egyptian national charged with committing offenses against South Texas minorRead the Press Release
CORPUS CHRISTI, Texas – A 45-year-old man has been indicted on charges of online solicitation of a minor, travel with intent to engage in illicit sexual conduct and transfer of obscene materials to a minor, announced U.S. Attorney Ryan K. Patrick.
A Corpus Christi grand jury returned an indictment against Ehab Sadeek today. He resided in Winchester, Massachusetts, but is an Egyptian citizen with no legal status in the United States. He was initially charged by criminal complaint and made an initial appearance before U.S. Magistrate Judge Julie K. Hampton. At that time, the court found probable cause that Sadeek committed the alleged offenses and ordered him into custody. He will appear again in federal court in the near future on the indictment.
The charges allege Sadeek used interstate and foreign commerce to knowingly persuade, induce, entice and coerce a minor victim in Live Oak County to engage in sexual activity. From May 7 to May 26, Sadeek allegedly transferred obscene material to the same victim, knowing she was less than 16 years of age. Sadeek traveled from Massachusetts to Texas with the intent to commit sexual offenses, according to the allegations.
The George West Police Department, Live Oak County Sheriff’s Office, Texas Department of Public Safety and Immigration and Custom’s Enforcement’s Homeland Security Investigations conducted the investigation.
This case, prosecuted by Assistant U.S. Attorney Sara Popejoy, 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.
Authorities warn of fraudulent images and false information regarding face mask usageRead the Press Release
HOUSTON – The Department of Justice (DOJ) has not issued any notice or other public information regarding the use of face masks and the Americans with Disabilities Act (ADA), announced U.S. Attorney Ryan K. Patrick.
Inaccurate flyers or other postings have been circulating on the web and via social media channels regarding the use of face masks and the ADA due to the COVID-19 pandemic. Many of these notices include use of the DOJ seal and ADA phone number.
However, DOJ did not issue and does not endorse them in any way. The public should not rely on the information contained in these postings.
The ADA does not provide a blanket exemption that relieves people with disabilities from complying with legitimate health and safety rules.
DOJ previously issued an alert regarding the fraudulent flyers. The public can visit ADA.gov or call the ADA Information Line at 800.514.0301 (voice) and 800.514.0383 (TTY) for more information.
“Compound King” and Wife Sentenced in $21 Million Health Care Fraud Scheme; Fugitive SoughtRead the Press Release
A Houston pharmacist and his wife were sentenced today for their roles in an approximately $21.8 million Department of Labor (DOL) - Office of Workers Compensation Programs and Federal Employees Compensation Act fraud scheme.
George Philip Tompkins, 75, of Houston, Texas, the self-proclaimed “Compound King” and former owner of Piney Point Pharmacy, was sentenced to 10 years in prison. Marene Kathryn Tompkins, 68, also of Houston, the former vice president of Piney Point Pharmacy, was sentenced to 30 days of home confinement and three years of supervised release. Both were sentenced by U.S. District Judge Sim Lake of the Southern District of Texas, who presided over the trial of George Thompkins and the guilty plea of Marene Tompkins. Judge Lake also ordered George Tompkins to pay $12,300,381.36 in restitution (and forfeiture) and Marene Tompkins to pay $950,745.10 in restitution (and forfeiture).
On March 10, 2020, after a six-day trial, George Tompkins was convicted by a jury of conspiracy to pay and receive kickbacks, conspiracy to commit health care fraud, conspiracy to commit money laundering, 11 counts of health care fraud, and three counts of wire fraud. Kathryn Tompkins pleaded guilty on Jan. 3, 2020, to one count of conspiracy to pay kickbacks.
According to the evidence at trial, George Tompkins and others billed the DOL approximately $21.8 million for medically unnecessary compound gels and creams that were predicated on illegal kickback payments. George Tompkins and Anoop Chaturvedi, 48, a legal permanent resident from India who remains a fugitive on related charges, created the scheme to generate compounded pain cream prescriptions and bill health care programs for injured state and federal employees. George Tompkins and Chaturvedi used separate entities—including George Tompkins’s company, Wellington Advisors—to receive and launder the proceeds of their crimes. Further evidence presented at trial showed that George Tompkins sought to disguise illicit kickback payments as legitimate “marketing” expenses and continued to ship patients compound gels and creams even after patients repeatedly complained they did not want them.
Marene Tompkins pleaded guilty before trial. As part of her guilty plea, she admitted that she conspired with her husband and others to pay illegal kickbacks as part of the scheme.
George and Marene Tompkins were charged in a superseding indictment in November 2018 along with Chaturvedi. Chaturvedi is considered a fugitive and a warrant remains outstanding for his arrest in connection with the charges. Anyone with information about his whereabouts is asked to contact the U.S. Postal Service - Office of Inspector General (USPS-OIG) at 1-888-877-7644.
A federal criminal indictment is merely an accusation. Chaturvedi is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
USPS-OIG, DOL-OIG, IRS-Criminal Investigation, U.S. Department of Homeland Security-OIG, and Department of Veterans Affairs-OIG, conducted the investigation. Assistant U.S. Attorney Julie Redlinger charged the case and, with Trial Attorneys Leslie Garthwaite and Devon Helfmeyer of the Criminal Division’s Fraud Section, provided substantial assistance in its prosecution. Trial Attorneys Drew Pennebaker and Sara Clingan of the Fraud Section tried the case and continue to prosecute it.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the Health and Human Services (HHS) Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Texas Man Charged with COVID Relief FraudRead the Press Release
A Houston funeral director has been taken into custody on allegations he fraudulently sought over $13 million in Paycheck Protection Program (PPP) loans.
Jase DePaul Gautreaux, aka Jase Dixon, 38, is charged in a criminal complaint, unsealed today upon his arrest, with making false statements to a financial institution, wire fraud, bank fraud and engaging in unlawful monetary transactions. He is expected to make his initial appearance before U.S. Magistrate Frances H. Stacy in Houston at 2 p.m. CDT today.
Gautreaux allegedly perpetrated a scheme to file fraudulent loan applications seeking more than $13 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 Gautreaux allegedly submitted several fraudulent PPP loan applications to federally insured banks, including applications on behalf of a business that did not exist and other applications on behalf of a business with which he had no affiliation. In these applications, Gautreaux allegedly falsified his identity, misrepresented the number of employees and payroll expenses of the putative companies and made numerous other inaccurate statements. According to the complaint, Gautreaux also submitted falsified tax documents and bank account information in support of these applications. He submitted fraudulent applications for over $13 million in PPP funds and ultimately received over $1.6 million in PPP funds, 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 provided by the CARES Act 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 Office of the Inspector General (OIG) - Federal Housing Finance Agency, Federal Deposit Insurance Corporation – OIG, SBA – OIG and U.S. Postal Inspection Service - Houston Division conducted the investigation. Trial Attorney Timothy A. Duree of the Criminal Division’s Fraud Section and Assistant U.S. Attorney James McAlister of the U.S. Attorney’s Office for the Southern District of Texas are prosecuting the case. The case team would also like to recognize the invaluable assistance of the Houston Police Department.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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 charged with COVID relief fraudRead the Press Release
HOUSTON - A funeral home operator has been taken into custody on allegations he fraudulently sought over $13 million in Paycheck Protection Program (PPP) loans.
Jase DePaul Gautreaux aka Jase Dixon, 38, is charged in a criminal complaint, unsealed today upon his arrest, with making false statements to a financial institution, wire fraud, bank fraud and engaging in unlawful monetary transactions. He is expected to make his initial appearance before U.S. Magistrate Judge Frances H. Stacy in Houston at 2 p.m. today.
Gautreaux allegedly perpetrated a scheme to file fraudulent loan applications seeking more than $13 million in forgivable loans. The Small Business Administration (SBA) guarantees the loans for COVID-19 relief through the Paycheck Protection Program under the Coronavirus Aid, Relief and Economic Security (CARES) Act.
The complaint alleges Gautreaux allegedly submitted several fraudulent PPP loan applications to federally insured banks, including applications on behalf of a business that did not exist and other applications on behalf of a business with which he had no affiliation. In these applications, Gautreaux allegedly falsified his identity, misrepresented the number of employees and payroll expenses of the putative companies and made numerous other inaccurate statements. According to the complaint, Gautreaux also submitted falsified tax documents and bank account information in support of these applications. He submitted fraudulent applications for over $13 million in PPP funds and ultimately received over $1.6 million in PPP funds, 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, mortgage interest, 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 Office of the Inspector General (OIG) - Federal Housing Finance Agency, Federal Deposit Insurance Corporation – OIG, SBA – OIG and U.S. Postal Inspection Service - Houston Division conducted the investigation with the assistance of the Houston Police Department.
Trial Attorney Timothy A. Duree of the Criminal Division’s Fraud Section is prosecuting the case with the assistance of Assistant U.S. Attorney James McAlister.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency HERE.
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.
Former Mexican governor convicted of money launderingRead the Press Release
CORPUS CHRISTI, Texas – A former Coahuila, Mexico, governor has entered a guilty plea for his role in a money laundering scheme that includes offenses against a foreign nation involving bribery of a public official, announced U.S. Attorney Ryan K. Patrick.
Jorge Juan Torres-Lopez, 66, admitted to conducting financial transactions in the United States to conceal the bribes he received here in return for road-building contracts for the State of Coahuila.
Torres-Lopez worked for the Mexican government from 1994 to 2011. His roles included general director of Promotion and Development while secretary of Finance for the state of Coahuila, municipal president of Saltillo as well as interim governor of Coahuila. In approximately December 2005, Hector Javier Villarreal-Hernandez was appointed as undersecretary of Program and Budget for the state of Coahuila. At the time, Torres-Lopez was his supervisor. In July 2008, Villarreal-Hernandez was appointed as secretary of Finance for Coahuila, where he remained until his resignation in August 2011.
As part of his plea, Torres-Lopez agreed to forfeit a piece of property in the United States associated with the payments.
U.S. District Judge Nelva Gonzalez Ramos set sentencing for Sept. 10. At that time, Torres-Lopez faces up to 20 years in federal prison and a possible $500,000 fine, twice the value of the monetary instrument or funds involved in the transaction or both.
Torres-Lopez was taken into custody in Mexico on Feb. 5, 2019, where he remained until his extradition to the United States Oct. 29, 2019. He will remain in custody pending his sentencing.
Villarreal-Hernandez, 49, of Saltillo, Coahuilla, Mexico, has also been convicted in the Southern and Western Districts of Texas for money laundering offenses and is also awaiting sentencing.
Multiple agencies conducted the Organized Crime Drug Enforcement Task Force investigation dubbed Operation Politico Junction to include Drug Enforcement Administration, IRS - Criminal Investigation, Immigration and Customs Enforcement’s Homeland Security Investigations, FBI and U.S. Marshals Service.
The Prosecutor General of the Republic of Mexico provided significant assistance. The Department of Justice’s Office of International Affairs of the Department’s Criminal Division also assisted.
Assistant U.S. Attorneys Jon Muschenheim and Lance A. Watt are prosecuting the case.
Texas man charged for impeding law enforcement during protestRead the Press Release
HOUSTON – A 32-year-old resident of Austin has been taken into custody on charges of civil disorder, announced U.S. Attorney Ryan K. Patrick.
Travis Glendon Martin III is set to make his appearance at 2:00 p.m. today before U.S. Magistrate Judge Dena H. Palermo. He is charged in a criminal complaint filed June 5.
According to the charges, authorities had been engaged in the lawful performance of their duties May 29 during a protest in Houston related to the death of George Floyd. The protest allegedly involved multiple acts of violence at the hands of many which resulted in damage to property and injury to peaceful protesters and others.
Some law enforcement personnel were assigned to control pedestrian traffic and prevent their entrance to Interstate-45, according to the charges. During this time, Martin allegedly lowered his shoulder and rammed one of the officers in an attempt to break through the police line and enter the interstate.
Officers attempted to gain control of Martin who had been exhibiting passive resistance by placing his arms underneath his body as he lay on the ground, according to the complaint. Martin’s actions allegedly impeded law enforcement as another individual was able to remove a traffic cone and throw it at the officers while they attempted to take Martin into custody.
The complaint further alleges that Martin’s actions emboldened others to commit similar acts. During his arrest, yet another person then threw traffic cones at the officers which further obstructed, delayed and adversely affected commerce up the ramp and onto the interstate, according to the charges.
Civil disorder involves the commission of any act or attempt to obstruct, impede or interfere with a fireman or law enforcement officer lawfully engaged in the performance of official duties which adversely affects commerce.
If convicted, Martin faces up to five years in federal prison and a possible $250,000 fine.
The FBI conducted the investigation. Assistant U.S. Attorney Steven Schammel 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.Indicted Laredoan charged with firearms violationsRead the Press Release
LAREDO, Texas – A 19-year-old man has been taken into custody for illegally possessing a firearm while under an active domestic violence protection order and possessing a firearm while under indictment, announced U.S. Attorney Ryan K. Patrick.
Mario Salazar is expected to make a virtual initial appearance before U.S. Magistrate Sam Sheldon at 9 a.m. today.
The criminal complaint, filed under seal June 4 and unsealed yesterday upon his arrest, alleges that Salazar had a domestic violence order on file which prohibited him from possessing a firearm. However, he allegedly assaulted a woman March 31 – striking her in the left arm and hip with the firearm. The charges also allege he pointed a firearm at her feet while threatening to shoot her.
According to the criminal complaint, the firearm also matches a shooting incident in Laredo April 23. On that date, Salazar allegedly discharged a firearm at a vehicle as it was driving through an intersection. He was still subject to the domestic violence order at that time, according to the complaint.
Salazar is also currently under indictment in Webb County for engaging in organized criminal activity and unlawful restraint, according to the charges, and is prohibited from possessing a firearm.
If convicted of either charge, Salazar faces up to 10 years in federal prison and a possible $250,000 maximum fine.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation with the assistance of the Laredo Police Department. Assistant U.S. Attorney April Ayers-Perez 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.Suicidal man sentenced after deliberately ramming stolen pickup truck into military baseRead the Press Release
CORPUS CHRISTI, Texas – A 48-year-old Beeville man has been ordered to federal prison following his conviction for destruction of U.S. government property and possession of a stolen firearm, announced U.S. Attorney Ryan K. Patrick.
Brian Dale Robinson pleaded guilty Nov. 21, 2019.
Today, U.S. District Judge Nelva Gonzales Ramos ordered Robinson to prison for 33 months to be immediately followed by three years of supervised release. He was further ordered to pay restitution of more than $12,000 to Naval Air Station (NAS) in Corpus Christi. In handing down the sentence, the court noted the dangerousness of Robinson’s conduct.
At the time of his plea, Robinson admitted he knew the firearm in his possession was stolen and he intentionally damaged federal property. He had hit a barricade located at the North gate entrance of NAS - Corpus Christi.
On Oct. 7, 2019, Robinson was at a gas station in Beeville when he spotted a Dodge Ram 3500 pickup truck with the engine running. He then entered that vehicle without permission and drove straight to Corpus Christi. There, he approached the NAS and attempted to gain unauthorized access to the base by crashing through the gate. However, the vehicle became inoperable after he hit the barricade.
Robinson exited the pickup truck and fled on foot into the base with a handgun he had stolen from the vehicle and hid next to a dumpster. He was located by base security personnel who immediately arrested him. Robinson claimed he had suicidal thoughts. However, he opted to drop the weapon so no one else would be hurt. Following his arrest, they located an HS Produkt, model XDM-9, 9mm pistol loaded with a full magazine.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Naval Criminal Investigative Service and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney Robert D. Thorpe Jr. prosecuted the case.
Zapata man admits to fleeing checkpoint with 63 hidden in trailerRead the Press Release
LAREDO, Texas - A 30-year-old Zapata man has entered a guilty plea to conspiracy to transport aliens within the country, announced U.S. Attorney Ryan K. Patrick.
On Jan. 21, Leonidas Navarro drove a semi-truck and trailer combination through the Laredo North Border Patrol checkpoint on Interstate 35. Upon inspection, a K-9 alerted to the presence of contraband in the trailer. Navarro also could not provide a bill of lading for the goods he was supposedly transporting. He was then referred to secondary inspection.
However, rather than complying, Navarro increased his speed and drove through a fence and into a field before he ultimately crashed. He jumped out of the truck and attempted to flee, but was soon captured.
Authorities found a total of 63 aliens that had been hidden inside the truck. None were seriously injured during the crash.
U.S. District Court Judge Diana Saldaňa will impose sentencing at a later date, at which time Navarro faces up to 10 years in federal prison.
He has been and will remain in custody pending that hearing.
Immigration and Custom Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of Border Patrol. Assistant U.S. Attorney Paul Harrison is prosecuting the case.
Mexican man convicted of alien smuggling after 90-mile chaseRead the Press Release
LAREDO, Texas – A 21-year-old legal permanent resident from Laredo has pleaded guilty to conspiracy to transport undocumented aliens from Guatemala, announced U.S. Attorney Ryan K. Patrick.
Ivan Duran Gachuzo admitted he was transporting illegal aliens to San Antonio for $4,000.
On Jan. 20 at approximately 5:20 p.m., law enforcement attempted to perform a traffic stop on a Chevrolet truck at the Moose Ranch near Freer. Gachuzo was driving. Numerous individuals jumped out of the truck and absconded into the brush. Authorities apprehended three and determined them to be citizens of Guatemala.
Gachuzo then accelerated towards an official vehicle, nearly causing a crash. He continued to flee from law enforcement for approximately 90 miles through four different counties. He attempted to enter Mexico at the Falcon Port of Entry in Roma where he was ultimately apprehended.
Gachuzo admitted he swerved toward the agent’s vehicle because he wanted to get away. He was asked if he knew he could have hurt or killed someone. “I was aware that could happen,” Gachuzo replied.
U.S. District Judge Diana Saldana will impose sentencing at a later date, at which time Gachuzo faces up to 10 years in prison.
He has been and will remain in custody pending sentencing.
Border Patrol conducted the investigation with assistance from Customs and Border Protection, Texas Department of Public Safety and the Jim Hogg County Sheriff’s Office. Assistant U.S. Attorney Jennifer Day is prosecuting the case.
Former employee admits to stealing nearly $10 millionRead the Press Release
HOUSTON – A 65-year-old Texas man has pleaded guilty to wire fraud in his connection to stealing millions from a Deer Park oil corporation, announced U.S. Attorney Ryan K. Patrick.
James Arthur Camp, New Braunfels, admitted that from April 1998 through November 2017, he defrauded Lubrizol Corporation of $9,256,712.54. During the scheme, Camp submitted fraudulent invoices for laboratory services from two companies he owned, knowing they had not been performed.
Specifically, Camp admitted that one of those fraudulent laboratory charges included one from his company Bay Area Analytical in the amount of $2,774.06. Camp inputted the data into Lubrizol’s accounting system, causing it to be transmitted electronically from Deer Park to company headquarters in Wycliffe, Ohio. That fraudulent charge was then bundled with other similar charges and paid via electronic funds transfer to Bay Area Analytical’s bank account at J P Morgan Chase Bank in the amount of $12,294.23.
U.S. District Judge Nancy Atlas accepted the plea and set sentencing for August. At that time, Camp faces up to 20 years in federal prison and a possible $250,000 maximum fine.
The FBI conducted the investigation. Assistant U.S. Attorney John Braddock is prosecuting the case.
Man admits to “spoof” email fraud scheme and moreRead the Press Release
HOUSTON – A 64-year-old man has admitted to conspiring to commit money laundering for his role in a complex email fraud scheme, announced U.S. Attorney Ryan K. Patrick.
Kenenty Kim aka Myung Kim engaged in a business email compromise scheme using “spoof” email addresses which have similar names to legitimate email accounts that Kim hacked. He would then use the addresses to create fictitious transactions or to hijack legitimate transactions to convince a victim company or individual to send funds to a bank account Kim actually controlled.
For example, Kim created a spoof email account for a Pinehurst-based construction company. He then used that account to convince another company, based in Huntsville, to send over $200,000 to them. In reality, the account where they sent the funds was actually an account Kim controlled. He then took that money and moved it through several different bank accounts before placing it in an offshore account.
Kim also engaged in the same conduct against the parent company of several major appliance companies. Kim created a spoof account of one of its vendors and used it to convince the company to send more than $300,000 to what it thought was a vendor. The account was actually set up for a different shell company Kim created with a similar name. Again, Kim took that money and eventually placed it in an offshore account.
At a previous hearing, the court also heard about Kim’s numerous credit card fraud schemes. In those, Kim created a system to process credit card payments. He would then obtain a victim’s personal identifying information and charge over $10,000 on their credit cards. Kim also had 36 different credit cards in a variety of names, four different Social Security numbers, two dates of birth, 11 different overlapping addresses and a prior real estate license suspension for engaging in fraud.
In his plea agreement, Kim acknowledged he gained over $700,000 from his various fraud schemes.
U.S. District Judge George C. Hanks accepted the plea today and has set sentencing for Aug. 19. At that time, Kim, of Firecrest, Washington, faces up to 20 years in federal prison and a possible $500,000 fine or twice the amount he intended to obtain as a result of the criminal offense.
Kim has been and will remain in custody pending sentencing.
The FBI conducted the investigation. Assistant U.S. Attorney Adam Laurence Goldman is prosecuting the case.
Guatemalan indicted for assaulting federal officerRead the Press Release
LAREDO, Texas – A 22-year-old citizen of Guatemala has been charged with forcibly assaulting a Border Patrol (BP) agent, announced U.S. Attorney Ryan K. Patrick.
A federal grand jury returned an indictment today against Josue Edilmar Ramirez-Pimentel. He is expected to appear for his arraignment next week before a U.S. magistrate judge in Laredo.
The criminal complaint alleges that on March 11, authorities responded to call that six people were attempting to make illegal entry into the United States near Richter’s Ranch in Laredo. As they attempted to apprehend the group, several individuals ran back towards the river, according to the allegations.
Ramirez-Pimentel, however, allegedly ran towards an agent. The agent then shined his flashlight at Ramirez-Pimentel and gave him commands in Spanish to stop and lay down, according to the charges. Ramirez-Pimentel allegedly did not comply and collided with the agent, causing him to hit his head on the ground.
Ramirez-Pimentel continued to struggle and struck the agent’s face with his forearm, according to the charges. The charges allege that as additional authorities arrived, they were eventually able to restrain and place Ramirez-Pimentel under arrest.
If convicted, Ramirez-Pimentel faces up to eight years in prison.
The FBI and Border Patrol conducted the investigation. Assistant U.S. Attorney Jennifer Day 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.Mexican national faces life for importing liquid methRead the Press Release
LAREDO, Texas – A 27-year-old resident of Reynosa, Tamaulipas, Mexico, has been charged with conspiracy and importation of meth, announced U.S. Attorney Ryan K. Patrick.
A federal grand jury sitting in Houston returned the two-count indictment again Luis Angel Burnias-Reyes today. Originally charged by criminal complaint March 19, he remains in custody. He is set to make his initial appearance before a U.S. magistrate judge in Laredo next week.
On Nov. 7, 2019, Burnias-Reyes allegedly entered the United States through a port of entry near McAllen utilizing a B1/B2 visa and driving a tractor-trailer. The charges allege he transported a large commercial tire inside the trailer that contained approximately 51 kilograms of liquid meth. He delivered the drug-laden tire in McAllen, according to the charges, and then returned to Mexico.
He was later arrested March 19 near Pharr after trying to re-enter the country at the port of entry. His visa was cancelled because of the arrest.
The estimated street value of the drugs is approximately $400,000.
If convicted, he faces a mandatory minimum of 10 years and up to life in federal prison on each count and a possible $10 million maximum fine.
Immigration and Customs Enforcement’s Homeland Security Investigations is conducted the investigation. Assistant U.S. Attorney Anthony J. Evans is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Former oil executive admits role in false payroll schemeRead the Press Release
CORPUS CHRISTI, Texas – A 40-year-old Houston man has entered a guilty plea in Corpus Christi federal court to money laundering through wire fraud, announced U.S. Attorney Ryan K. Patrick.
Mohamad Sylla admitted he conspired with Jose Luis Briseno, 41, Tynan, and David Contreras, 42, Paso Robles, California, to get a Houston oil production company to issue paychecks for work Contreras never completed and while he was not even employed there.
From Jan. 1 to Sept. 11, 2015, Briseno and Sylla were employed at the company as the service coordinator and South Texas region manager, respectively. The two men conspired to approve timesheets for Contreras even though he was no longer employed there. Briseno and Sylla ensured the timesheets were approved and payments issued. Once Contreras received the funds, he would split the paycheck with Briseno and Sylla.
As a result, Contreras, Briseno and Sylla falsely obtained funds totaling approximately $40,383.91.
Briseno and Contreras have also pleaded for their roles in the scheme.
U.S. District Judge David Morales will impose Sylla’s sentencing Aug. 31. At that time, Sylla faces up to 20 years in federal prison and a possible $500,000 maximum fine.
He was permitted to remain on bond pending that hearing.
The FBI conducted the investigation. Assistant U.S. Attorney Jeremy C. Fugate is prosecuting the case.
Man admits attempting to export contraband cigarettesRead the Press Release
McALLEN, Texas - An 80-year-old Mission man has entered a guilty plea for attempting to export contraband cigarettes, announced U.S. Attorney Ryan K. Patrick.
Jose Francisco Guerra owned and operated Victor M. Guerra Inc., a customs brokering company in Hidalgo. On Jan. 15, law enforcement stopped a tractor-trailer which later revealed approximately 17 million cigarettes headed for Mexico. The shipping manifest had been falsified as to the vehicle’s contents, and the cigarettes lacked the applicable tax stamp as Texas law requires.
The investigation revealed the cigarettes originated in a warehouse located at 2900 North Depot Road in Hidalgo. Guerra controlled and operated that warehouse and facilitated the storage and sale of the cigarettes. Guerra was also found to be in control of another warehouse in McAllen. Both warehouses contained a combined total of 422,917,800 contraband cigarettes destined to be exported to Mexico.
Guerra admitted to his role in the attempted smuggling event, adding that he knew exporting contraband cigarettes into Mexico was illegal and intended to export additional cigarettes. At his plea today, Guerra also agreed to forfeit his customs broker license, pay a fine and forfeit his interest in the cigarettes and items seized from his warehouse.
The total value of the cigarettes and equipment authorities seized is estimated at approximately $88 million.
In addition to accepting Guerra’s guilty plea, U.S. District Judge Micaela Alvarez entered an order of forfeiture against equipment and cigarettes seized from the truck and Guerra’s warehouses. She will set sentencing at a later date. At that time, Guerra faces up to 10 years in federal prison and a possible $250,000 fine.
He was permitted to remain on bond pending that hearing.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of Texas Department of Public Safety. Assistant U.S. Attorney Michael Mitchell is prosecuting the case.
Missouri City physician pays nearly half a million to resolve illegal kickback and fraud allegationsRead the Press Release
HOUSTON – A local physician has agreed to pay the United States $450,000 to resolve allegations that he falsely signed home health certifications and plans of care in exchange for money, announced U.S. Attorney Ryan K. Patrick. Dr. Maaz Abbasi, 41, also agreed to a three-year period of exclusion from participation in any federal health care program.
The investigation began after authorities uncovered Abbasi’s connection to a fraud matter involving home health company Circuit Wide Healthcare Inc. Its owner - Egondu “Kate” Koko - admitted she paid illegal kickbacks to physicians like Abbasi for paperwork necessary to bill Medicare for home health services purportedly provided.
From 2015 to 2018, Abbasi certified patients for home health services without any knowledge of their medical condition or homebound status. Circuit Wide paid Abbasi approximately $6,200 in exchange for signing these fraudulent Medicare home health certifications and plans of care. Abbasi also fraudulently signed a fellow physician’s name on these certifications and plans of care without that physician’s authorization, permission or knowledge.
The agreement resolves the allegations without a determination of liability.
Department of Health and Human Services - Office of the Inspector General and FBI conducted the investigation. Assistant U.S. Attorney Melissa M. Green handled the matter.
Another strip mall property settles ADA allegationsRead the Press Release
HOUSTON — The owners of a property known as Center West Plaza 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 United States initiated an investigation into Center West Plaza as part of a compliance review of strip shopping centers after receiving a complaint regarding a similar property. The investigation revealed that physical barriers existed at various locations in the parking lot and access points of the shopping center.
The settlement agreement requires the property owner to remedy all access barriers the United States has identified within three months.
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.
The Center West Plaza property is a place of public accommodation. As such, the owner is subject to the Title III requirements.
The United States Attorney is authorized to commence a civil action when he believes discrimination exists, seeking full compliance with the ADA, including requiring the owners and operators of places of public accommodations to remedy the violations.
Assistant U.S. Attorneys Keith Edward Wyatt and Annalisa Cravens handled this investigation with the assistance of Paralegal Specialist Raymond Babauta.
Local strip mall property settles ADA allegationsRead the Press Release
HOUSTON – The owners of a property known as A-S 76 on Highway 290 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 United States initiated an investigation into A-S 76 Hwy 290 Bingle L.P. as part of a compliance review of strip shopping centers after receiving a complaint regarding a similar property. The investigation revealed that physical barriers existed at various locations in the parking lot and access points of the shopping center.
The settlement agreement requires the property owner to remedy all access barriers within six months.
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.
The Bingle Property is a place of public accommodation. As such, the owner is subject to Title III requirements.
The United States Attorney is authorized to commence a civil action, when he believes discrimination exists, seeking full compliance with the ADA, including requiring the owners and operators of places of public accommodations to remedy the violations.
The owner denies the allegations that it violated the ADA, but agreed to remedy all the alleged violations the United States has identified.
Assistant U.S. Attorneys Keith Edward Wyatt and Annalisa Cravens handled this investigation with the assistance of Paralegal Specialist Raymond Babauta.
Texas man admits role in nearly $5 million health care fraud schemeRead the Press Release
CORPUS CHRISTI, Texas – A 57-year-old Houston man has entered a guilty plea in Corpus Christi federal court for conspiring to commit health care fraud, announced U.S. Attorney Ryan Patrick.
Ravinder Syal admitted he engaged in a scheme that resulted in the false billing of $4,878,530.92 for services never provided to patients. From Feb. 1, 2018, until March 1, 2020, he acquired physicians’ practices throughout Texas and assumed control of their billing department. He then brought in a company located in India to bill false claims to Medicare, Medicaid and various insurance providers.
Syal would submit false claims for services that were never performed, for nutritional servicers that were never provided and even for office visits that occurred over holidays when the clinics were actually closed. He would also bill for services that could not even be performed at the clinics he acquired due to lack of equipment.
Syal altered the billing information and added these fraudulent services without the knowledge of the physicians at the respective practices.
As a result of his scheme, Medicare, Medicaid and various insurance providers were billed $4,878,530.92 for services never performed. Syal was overpaid $553,068.65 on the fraudulent claims.
Sentencing has been set for Aug. 10 before U.S. District Judge David S. Morales. At that time, Syal faces up to 10 years in federal prison and a possible $250,000 maximum fine.
Syal was permitted to remain on bond pending that hearing.
The FBI and the Texas Attorney General’s Medicaid Fraud Control Unit conducted the investigation. Assistant U.S. Attorney Jeremy C. Fugate is prosecuting the case.
Smuggling Chinese citizen lands Houstonian behind federal barsRead the Press Release
CORPUS CHRISTI, Texas – A 45-year-old Houston man has been ordered to prison in Corpus Christi federal court following his conviction for transporting an undocumented Chinese national, announced U.S. Attorney Ryan K. Patrick.
The jury deliberated for approximately two hours before convicting Torrie Franklin Feb. 4 following a one-day trial.
Today, U.S. District Judge David S. Morales ordered Franklin to serve a 42-month sentence to be immediately followed by three years of supervised release.
On Nov. 12, 2019, Franklin drove a blue four-door sedan into the primary inspection lane at the Border Patrol (BP) Checkpoint located near Falfurrias. Upon his arrival, authorities conducted a routine inspection, at which time a K-9 alerted to the trunk of the vehicle. There, they found an undocumented Chinese national.
At the time of his arrest, Franklin told authorities he had encountered the man at a gas station. Franklin claimed the Chinese national asked for a ride to Houston, despite not knowing any English. He also said the man asked to ride in the trunk as opposed to inside the vehicle.
At trial, the jury heard from the Chinese national who said Franklin was the person who placed him inside the trunk. They also heard excerpts of Franklin’s phone calls in which he admitted his role in the offense.
The defense attempted to convince the jury that Franklin was merely a good Samaritan just providing a ride. They did not believe his claims and ultimately found him guilty as charged.
Franklin has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
BP conducted the investigation. Assistant U.S. Attorney Neel Kapur and Barbara De Pena are prosecuting the case.
Federal firearm licensee arrested for prohibited salesRead the Press Release
HOUSTON – A 32-year-old Pearland resident is set to appear on federal charges that he illegally sold firearms to convicted felons, announced U.S. Attorney Ryan K. Patrick.
Khalid Abdullah Abdullaziz is expected to make a virtual initial appearance before U.S. Magistrate Nancy K. Johnson at 2 p.m. today. Authorities filed the criminal complaint April 24, which was unsealed as he was taken into custody April 29.
The charges allege Abdullaziz is the owner of Zeroed In Armory in Pearland and became the target of an investigation involving the trafficking of firearms to Mexico. The investigation revealed he allegedly sold multiple firearms to a felon on numerous occasions, including a .50 caliber rifle.
Also taken into custody on related charges were Isaac Rodriguez, 25, Israel Chapa Jr., 24, and Steve Baranowski, 23, all of Houston; and Ashley Giddens, 26, Humble. They are also expected to make appearances in federal court later today.
If convicted, Abdullaziz faces up to 10 years in federal prison and a $10,000 maximum possible fine.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorneys Jennifer Stabe and Lisa M. Collins 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.Houston man gets significant sentence after multiple Metro PCS robberiesRead the Press Release
HOUSTON – A 20-year-old resident of Houston has received a major federal sentence following his convictions on four counts of aiding and abetting interference with commerce by robbery and three counts of brandishing a firearm during and in relation to a crime of violence, announced U.S. Attorney Ryan K. Patrick.
Jamal Tyrea Allen pleaded guilty Jan. 31, admitting to four robberies that occurred in April 2018 and the related firearms offenses.
Today, U.S. District Judge Keith P. Ellison ordered Allen to serve a total of 48 months for his role in the robberies. He also received an 84-month sentence for the first firearms charge and another 168 months for the subsequent brandishing charges to be served consecutively to each other and the other term imposed. The total 25-year prison sentence will be immediately followed by five years of supervised release.
On or about April 9, 2018, Allen entered the Metro PCS located on Long Point Road in Houston where he pointed a pistol at an employee. He took money from the register and demanded to know where iPhones were located. The employee said they were out, and Allen eventually fled with the cash.
Five days later, he entered another Metro PCS on Woodforest Boulevard and again pointed a firearm at another employee, demanding iPhones. When the cashier said he did not know where they were, Allen chambered a round into the firearm and continued making demands. He found the phones, then fled with them as well as stolen cash.
Allen robbed another Metro PCS April 24, 2018, where he also made violent threats. He walked into the Little York Road location, pulled out a handgun and pointed it at a female employee, stating “You need to find me money or I am going to kill you.” When she informed him they did not have any iPhones, he got increasingly angry and threatened to kill her. She gave him money from the cash register while he was still pointing his firearm and making death threats.
Finally, on April 27 the same year, he arrived at Metro PCS on Airline Drive and made similar demands and threats. There, he pointed a firearm to the head of an employee, saying he was not playing and that he would shoot him. Once a second cashier entered the lobby, Allen made them get money from the cash register and forced both to the store’s back room at gunpoint.
After leaving the store, law enforcement stopped Allen, found the money and iPhones in the car and took him into custody.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI and Houston Police Department conducted the investigation. Assistant U.S. Attorney Jill Stotts is prosecuting the case.
Trucker charged with bringing nearly $2M to RGVRead the Press Release
BROWNSVILLE, Texas – A 51-year-old man is set to appear in federal court on charges of money laundering and conspiracy to possess with intent to distribute cocaine, announced U.S. Attorney Ryan K. Patrick.
Edgardo Serrano, New Boston, Michigan, will make an appearance before U.S. Magistrate Judge Ignacio Torteya III at 10:30 a.m. today.
The criminal complaint charging Serrano was filed April 18. It alleges that authorities had searched a mechanics shop in Hidalgo April 17, which resulted in the discovery of $1.7 million hidden in a commercial tractor. The investigation revealed Serrano had been driving the vehicle, according to the charges.
The complaint further alleges Serrano was in the Rio Grande Valley to pick up a load of carrots, but it appeared to be a cover for what was actually a cocaine shipment destined for Florida.
The hidden cash was allegedly the proceeds of the illegal narcotics sales in Florida.
If convicted, Serrano faces up to life in federal prison and a possible $10 million fine.
Immigration and Customs Enforcement’s Homeland Security Investigation and the Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorney Karen Betancourt 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.Drug trafficker awaiting sentence charged with assaulting officerRead the Press Release
McALLEN, Texas – A 24-year-old Honduran man has been charged with physically assaulting a Starr County Detention Center (SCDC) officer who was performing official federal duties, announced U.S. Attorney Ryan K. Patrick.
Jose Humberto Ordonez made his initial appearance before U.S. Magistrate Judge Scott Hacker this morning, at which time he was ordered to remain in custody pending further criminal proceedings.
Ordonez was convicted in 2019 for possession with intent to distribute approximately 211 kilograms of marijuana and has been in custody at the SCDC in Rio Grande City pending his sentencing. The criminal complaint alleges that in April 2020, officers had responded to an incident in Ordonez’s cell where he did not comply with commands and had become combative. Ordonez allegedly repeatedly struck and punched an SCDC officer in the face with a closed fist. The officer suffered a fractured nose and other injuries and was transported to a hospital, according to the charges.
Ordonez is set for sentencing on his drug trafficking conviction and is pending sentencing before U.S. District Judge Ricardo Hinojosa, at which time he faces up to 40 years in federal prison. If convicted of the new charges, he faces an additional 20 years and a possible $250,000 maximum fine.
The U.S. Marshals Service, FBI and Starr County Sheriff’s Office are conducting the investigation. Assistant U.S. Attorney Matthew Redavid 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.Rice University pays to resolve claims it defrauded federal grant programRead the Press Release
HOUSTON – William Marsh Rice University has paid the United States more than $3.7 million to resolve claims it engaged in a pattern and practice of improperly charging National Science Foundation (NSF) research and development awards, announced U.S. Attorney Ryan K. Patrick.
Congress created the independent federal agency in 1950 “to promote the progress of science; to advance the national health, prosperity, and welfare; to secure the national defense...”
NSF funds support approximately 24% of all federally-supported basic research that colleges and universities conduct in the United States. As of March 2020, Rice had 215 active NSF research grants. University grantees, including Rice, carry out NSF-sponsored research under uniform administrative rules. They specify an expense may only be charged to an award if it is allocable - if it is incurred specifically for the award, if it benefits the award or if it is necessary to the overall operation of the awardee and is assigned in part to NSF in accordance with the other award terms and conditions.
In 2016, authorities began an investigation of Rice’s suspected misuse of NSF grant funds. Specifically, Rice allegedly budgeted for graduate student stipends in its research grant proposals but then used a portion of the money to pay the students to perform teaching duties unrelated to the NSF awards.
As an NSF grant awardee, Rice falsely certified on each proposal, and each time it requested a payment under the grant, that it was complying with NSF award terms and conditions. Those terms and other applicable regulations require each grant recipient adhere to specific federal cost principles which state that costs must be necessary, reasonable and allocable to be properly charged to an award. Rice knowingly failed to follow these requirements.
From Nov. 18, 2006, through Sept. 30, 2018, Rice knowingly engaged in a pattern and practice of improperly charging graduate students’ stipends, tuition remission and related facilities and administrative charges to NSF awards. These charges were actually used in part for time the graduate students spent performing teaching duties unrelated to Rice’s NSF research and development awards. The activities were not specifically incurred for the research awards, did not benefit those awards and otherwise were not allowable or allocable to the NSF awards, in violation of NSF award terms and conditions and the False Claims Act.
To settle the allegations, Rice has agreed to pay $$3,754,186– double the loss to the United States.
“The NSF is a strong supporter of basic research at colleges and universities,” said Allison Lerner, NSF Inspector General. “However, the Agency expects grant recipients to follow the federal cost principles. Expenses charged to grants must be allowable, allocable and reasonable. I commend the U.S. Attorney’s Office for their work on upholding federal grant rules in this case.”
The settlement resolved the claims without a determination of liability.
The NSF – Office of Inspector General conducted the investigation. Assistant U.S. Attorney Jill Venezia and Andrew Bobb handled the matter.
Taxpayers warned of scams in relation to COVID-19 economic payment checksRead the Press Release
HOUSTON – Federal authorities are cautioning taxpayers that criminals could steal economic impact payments through various means of deception, announced U.S. Attorney Ryan K. Patrick along with Acting Special Agent in Charge Rodrick Benton of IRS – Criminal Investigation (CI).
Everyone receiving a COVID-19 related economic impact payment from the government is at risk.
“Disasters create openings for crooks and scam artists,” said Patrick. “From phony door-to-door solicitations to complex computer and phone scams, I want people to be alert. Do not give out personal information to people who claim they are with the government. The scum that take advantage at a time like this will find the weight of federal law enforcement on them.”
“While the nation deals with the COVID-19 pandemic, criminals see an opportunity to enrich themselves through fraudulent schemes,” warned Benton. “With the public’s awareness, we can combat these scammers and cease their exploitation of the American taxpayer during these trying times.”
COVID-19 economic impact payment checks will be on their way from the IRS in a matter of weeks. For most Americans, this will be a direct deposit into their bank accounts. Those that did not identify a bank account on their tax returns, elderly individuals or others who have traditionally received tax refunds via paper check will receive their payments in that manner.
Criminals have already begun deceiving taxpayers through unsolicited phone calls, emails, text messages or other communications purporting to be from the IRS in attempts to steal these payments. Authorities warn taxpayers to be vigilant and on alert to this potential fraud.
- The IRS will deposit your check into the direct deposit account you previously provided on your tax return (or, in the alternative, send you a paper check).
- The IRS will NOT CALL and ask you to verify your payment details. Do NOT give out your bank account, debit account or PayPal account information – even if someone claims it’s necessary to get your check. IT’S A SCAM!
- If you receive a call, do NOT engage with scammers or thieves, even if you want to tell them that you know it’s a scam or you think that you can beat them. Just HANG UP.
- If you receive texts or emails claiming you can get your money faster by sending personal information or clicking on links, DELETE them. Do NOT click on any links in those emails or texts.
- Bogus checks are also being distributed. If you receive a “check” in the mail now, IT’S A FRAUD – it will take the Department of Treasury a few weeks to mail the legitimate checks to taxpayers. If you receive a “check” for an odd amount (especially one with cents), a check that requires that you verify the check online or by calling a number, IT’S A FRAUD.
For more information about coronavirus tax relief and economic impact payments, visit the IRS website.For more information about coronavirus fraud overall and related details, go to the DOJ website.
Mexican man convicted of smuggling half a million dollarsRead the Press Release
McALLEN, Texas – A 35-year-old resident of Mexico City, Mexico, has entered a guilty plea to bulk cash smuggling, announced U.S. Attorney Ryan K. Patrick.
Jorge Alberto Ruiz-Periban evaded a currency reporting requirement in his attempt to conceal $570,247 while trying to take the money into Mexico.
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 his plea today, 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.
As part of the terms of the plea agreement, the $570,247 will be forfeited to the United States.
U.S. District Judge Randy Crane will impose sentencing June 16. At that time, Ruiz-Periban faces up to five years in prison and a maximum $250,000 possible fine. He has been and will remain in custody pending that hearing.
Customs and Border Protection and Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Matthew Redavid is prosecuting the case.
Woman charged with falsely claiming officer accessed her bank account from International Space StationRead the Press Release
HOUSTON – A federal indictment has been unsealed against a 44-year-old woman for making false statements to federal authorities, announced U.S. Attorney Ryan Patrick.
A Houston federal grand jury returned the two-count indictment against Summer Worden, of Wichita, Kansas, Feb. 27. She is expected to make her initial appearance before U.S. Magistrate Judge Dena H. Palermo April 13.
The charges allege Worden made false statements to NASA - Office of Inspector General (OIG) and the Federal Trade Commission (FTC).
According to the indictment, Worden maintained multiple bank accounts at USAA Federal Savings Bank. She allegedly shared access to her online accounts with a commissioned officer in the U.S. Army on detail to NASA’s Johnson Space Center who had access until at least Jan. 31, 2019.
The indictment alleges Worden filed a complaint with the FTC, alleging the officer had improperly accessed her bank account. She claimed she had opened a new account in September 2018 and reset her login credentials in order to prevent the individual from accessing her accounts, according to the charges. However, the indictment alleges she actually opened the account in April 2018 and did not change her login credentials until January 2019.
The indictment charges Worden with making false statements on two occasions. She allegedly filed the false complaint March 19, 2019, with the FTC and later made a false statement in an interview with NASA-OIG July 22, 2019.
If convicted, Worden faces up to five years in prison on each count and a possible $250,000 maximum fine.
NASA-OIG and FTC conducted the investigation. Deputy Chief Ted Imperato and Assistant U.S. Attorney John Pearson 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.Notice regarding service of certain bankruptcy filings on the United States AttorneyRead the Press Release
As a temporary measure due to COVID-19 concerns, service on the United States Attorney shall be made via both email and US mail as follows:
A copy of any filing requesting relief affecting a lien or claim of the United States shall be emailed to [email protected]. A paper copy shall also be mailed to the Civil Process Clerk, United States Attorney’s Office, 1000 Louisiana, Suite 2300, Houston, TX 77002. Hand delivery may not be accepted.
E-mail delivery will not deemed complete until receipt is acknowledged by e-mail from the U.S. Attorney’s Office for the Southern District of Texas. This emergency accommodation will expire when the U.S. Bankruptcy Court lifts its public health and safety protocols.
Ryan K. Patrick
United States AttorneyCOVID-19 FraudRead the Press Release
On March 13, 2020, President Donald J. Trump declared the outbreak of COVID-19 (the coronavirus) in the United States to be a national emergency. Unfortunately, criminals and scammers are trying to take advantage of the crisis for their own profit. The U.S. Attorney’s Office for the Southern District of Texas through its United States Attorney, Ryan Patrick, has made it a top priority to detect, investigate, and prosecute anyone who attempts to exploit the anxiety and uncertainty surrounding the COVID-19 outbreak to defraud other people.
For example, there are reports of fraudsters falsely claiming to be from legitimate health organizations, selling fake medicines, vaccines, tests, medical supplies, and using phishing scams to steal personal and financial information. Please don’t fall victim to these frauds and crimes. If you see these frauds being attempted or if you are a victim of one of these frauds, please report them to:
National Center for Disaster Fraud (NCDF)
Telephone hotline:1-866-720-5721
Email address:[email protected]Federal Bureau of Investigation (FBI):
Submit a complaint online at https://tips.fbi.gov/
For cyber or internet related scams, submit your complaint at https://www.ic3.gov/default.aspx
Telephone:713-693-5000,Southern District of Texas COVID-19 Fraud Coordinator, Assistant U.S. Attorney Justin R. Martin
Telephone:713-567-9000
Email:[email protected]Please be on the lookout for any of these COVID-19 scams:
- Treatment scams: Scammers are selling fake vaccines, medicines, and cures for COVID-19.
- Supply scams: Scammers are claiming they have in-demand products, like cleaning, household, health, and medical supplies, but when an order is placed, the scammer takes the money and never delivers the order.
- Charity scams: Scammers are fraudulently soliciting donations for non-existent charities to help people affected by the COVID-19 crisis. Scammers often use names that are similar to the names of real charities. The FTC offers tips for avoiding charity scams: https://www.consumer.ftc.gov/features/how-donate-wisely-and-avoid-charity-scams
- Phishing scams: Scammers, posing as national and global health authorities, such as the World Health Organization (WHO) and the Centers for Disease Control and Prevention (CDC), are sending fake emails or texts to trick the recipient into sharing their personal information like account numbers, Social Security numbers, or login IDs and passwords. The FTC offers tips for avoiding phishing scams: https://www.consumer.ftc.gov/articles/how-recognize-and-avoid-phishing-scams
- App scams: Scammers are creating COVID-19 related apps that contain malware designed to steal the user’s personal information after it is downloaded.
- Provider scams: Scammers pretending to be doctors and hospitals that have treated a friend or relative for COVID-19, and demand payment for that treatment.
- Investment scams: Scammers are promoting the stock of small companies, which have limited publicly available information, using false or misleading claims that the companies’ stock will increase dramatically due to the COVID-19 outbreak, such as claims that a company can prevent, detect, or cure COVID-19.
For the most up to date information on the COVID-19 outbreak and the federal response, check https://www.cdc.gov/coronavirus/2019-ncov/index.html
Area man gets 35 years for sex trafficking adult women by forceRead the Press Release
HOUSTON – A 29-year-old former Katy resident has been ordered to prison for conspiring to compel three adult women to engage in sex trafficking by means of force and violence in Houston and other locations across the country, announced U.S. Attorney Ryan K. Patrick.
Marquis Holmes aka Goldie pleaded guilty June 13, 2019, to one count of conspiracy to engage in sex trafficking by means of force, fraud and coercion; two counts of transportation to engage in prostitution; and two counts of enticing and coercing another to travel in interstate commerce for prostitution.
Today, U.S. District Judge Sim Lake sentenced Holmes to 420 months for the conspiracy as well as 120 months and 240 months for the transportation and enticement convictions, respectively. The sentences will all run concurrently for a total 420-month-term of imprisonment. The court also heard from one of Holmes’ victims who described how he forced her to earn $1500 per day or suffer severe consequences. She described how Holmes physically assaulted her, which included kicking and whipping her repeatedly with a thick belt in order to exert his control. She said Holmes was amused during moments when he would physically assault her. The victim also detailed the paranoia, fear and depression she suffered for years after leaving Holmes.
In handing down the sentence, the court noted the heinous and violent nature of Holmes’ crimes. He will serve 20 years on supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. Holmes will also be ordered to register as a sex offender.
From June 2015 until his arrest in March 2018, Holmes scoured social media websites to recruit women, often under false pretenses, to work as prostitutes for him. Under threat of violence and actual violence, Holmes prostituted two of these women in Houston and Austin; New Orleans, Louisiana; Memphis, Tennessee; Pittsburgh, Pennsylvania; Mississippi; Alabama; South Carolina and other locations across the country. Holmes coerced the women to pose for pictures used in online advertisements for sex and to engage in commercial sex acts for money. Holmes collected all the money the women earned.
On March 30, 2018, authorities arrested Holmes, at which time they rescued a third victim whom he had kidnapped in his residence along with her infant child. While raping her daily, Holmes forced her to solicit commercial sex dates along the 1.3 mile stretch of Bissonnet Street, commonly referred to as “The Track,” while he kept close tabs on her and her infant child. If she did not meet the monetary quota Holmes had set, he beat her and deprived her of food.
Holmes 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 Human Trafficking Rescue Alliance (HTRA) conducted the investigation.
HTRA law enforcement includes members of the Houston Police Department, FBI, Immigration and Customs Enforcement’s Homeland Security Investigations, Texas Attorney General’s Office, IRS-Criminal Investigation, Department of Labor, Department of State, Texas Alcoholic and Beverage Commission, Texas Department of Public Safety, Coast Guard and sheriff’s offices in Harris and Montgomery counties in coordination with District Attorney’s offices in Harris, Montgomery and Fort Bend Counties.
Established in 2004, the United States Attorney’s office in Houston formed HTRA to combine resources with federal, state and local enforcement agencies and prosecutors, as well as non-governmental service organizations to target human traffickers while providing necessary services to those that the traffickers victimized. Since its inception, HTRA has been recognized as both a national and international model in identifying and assisting victims of human trafficking and prosecuting those engaged in trafficking offenses.
Assistant U.S. Attorneys Sebastian Edwards and Carrie Wirsing prosecuted this case.
Another former federal detention center employee indicted for briberyRead the Press Release
McALLEN, Texas – A 21-year-old resident of Weslaco and former employee of the East Hidalgo Detention Center has been taken into custody, announced U.S. Attorney Ryan K. Patrick.
A McAllen grand jury returned an indictment March 10 charging Amber Estrada. She is expected to make her initial appearance March 16 at 11:30 a.m. before U.S. Magistrate judge Peter E. Ormsby.
According to the charges, federal authorities discovered various forms of contraband approximately January 2019 in the East Hidalgo Detention Center, a correctional facility under contract with the U.S. Marshals Service. The indictment alleges Estrada accepted things of value in exchange for bringing contraband into the detention center while employed as a correctional officer.
She is no longer employed at the facility.
Six others have also been charged related to crimes committed while employed at the East Hidalgo Detention Center.
If convicted, Estrada faces up to 15 years in federal prison as well as a possible $250,000 maximum fine.
The U.S. Marshals Service, Department of Justice - Office of Inspector General and FBI conducted the joint investigation.
Assistant U.S. Attorneys Patricia Cook Profit and Amy L. Greenbaum 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.“Compound King” Convicted in $21 Million Health Care Fraud SchemeRead the Press Release
A federal jury sitting in Houston, Texas, found a pharmacist guilty Tuesday of charges related to health care fraud, wire fraud and money laundering.
After a six-day trial, George Phillip Tompkins, 75, of Houston, Texas, was convicted on all charges - one count each of conspiracy to pay and receive kickbacks, conspiracy to commit health care fraud, conspiracy to commit money laundering as well as 11 counts of health care fraud and three counts of wire fraud.
According to evidence presented at trial, Tompkins and others billed the federal government approximately $21.8 million for medically unnecessary compound gels and creams that were predicated on illegal kickback payments. The jury heard that Tompkins and Anoop Chaturvedi, 48, a legal permanent resident from India, created a scheme to generate compounded pain cream prescriptions and bill health care programs for injured state and federal employees. As part of the scheme, Tompkins and Chaturvedi created a separate entity - Wellington Advisors - to receive the program money from the Department of Labor (DOL) - Office of Workers Compensation Programs and Federal Employees Compensation Act.
Evidence introduced at trial showed that Tompkins sought to disguise illicit kickback payments as legitimate “marketing” expenses and continued to ship patients compound gels and creams even after patients repeatedly complained they did not want them.
U.S. District Judge Sim Lake of the Southern District of Texas presided over the trial and set sentencing for May 27.
Tompkins’ wife Marene Kathryn Tompkins, 68, of Houston, pleaded guilty in January 2020 to one count of conspiracy to pay kickbacks and is also awaiting sentencing. Chaturvedi is considered a fugitive and a warrant remains outstanding for his arrest in connection with the charges. Anyone with information about his whereabouts is asked to contact the U.S. Postal Service - Office of Inspector General (OIG) at 1-888-877-7644. He is presumed innocent unless convicted through due process of law.
USPS – (OIG), DOL – OIG, IRS-Criminal Investigation, Department of Homeland Security – OIG and U.S. Department of Veterans Affairs – OIG conducted the investigation. Trial Attorneys Andrew Pennebaker and Sara Clingan of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Julie Redlinger are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the Health and Human Services (HHS) Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Physicians group pays over $1M to resolve false billing claimsRead the Press Release
HOUSTON – Millennium Physicians Association PLLC has paid the United States $1,248,964 to resolve claims that they improperly billed the Medicare program for sleep studies, announced U.S. Attorney Ryan K. Patrick.
“Providers must adhere to the Medicare rules and regulations if they wish to participate in the program,” said Patrick. “The rules safeguard patients and keep providers accountable to taxpayers.”
“Providers using improperly credentialed technicians are cheating the taxpayers and may put beneficiaries at risk,” said Joseph Martin, Acting Special Agent In Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Along with our law enforcement partners, we will continue to guard the integrity of government health care programs.”
Millennium is based in The Woodlands and owns and operates two sleep centers in the Houston area doing business as Millennium Respiratory & Sleep Disorder Specialists.
The investigation began following the Jan. 4, 2018, filing of a whistleblower lawsuit. Millennium employed the whistleblower who alleged the company conducted sleep studies without the presence of properly credentialed technicians.
Medicare rules and guidelines require that properly-trained and certified sleep technicians administer sleep studies. However, the investigation revealed that from Jan. 8, 2015, through March 13, 2019, Millennium improperly billed and received payment for sleep tests when they did not have the required personnel present.
Medicare rules and guidelines also require facilities to be accredited or certified by the America Academy of Sleep Medicine, Joint Commission or Accreditation Commission for Health Care Inc. Millennium self-reported that from 2011 through 2019, two of its sleep test facilities did not have such accreditation or certification.
The United States contended Millennium violated False Claims Act (FCA) by knowingly submitting, or causing to be submitted, false claims to Medicare for payment for sleep studies performed at these unaccredited sleep centers.
Under the FCA, a private party (relator) can file an action known as a qui tam on behalf of the United States and receive a portion of the recovery. In this case, the relator received $187,344 as a result of the settlement.
The U.S. Attorney’s Office, Department of Health and Human Services - Office of Inspector General and FBI conducted the investigation. Assistant U.S. Attorney Jill Venezia handled the matter.
The settlement resolved the claims without a determination of liability.
Mexican man sentenced for attempting to export more than 1000 AK-47 magazinesRead the Press Release
McALLEN, Texas – A 22-year-old Mexican national has been ordered to prison following his conviction of attempting to export firearm magazines, announced U.S. Attorney Ryan K. Patrick.
Ociel Ambrosio Ramirez-Ramirez pleaded guilty Dec. 30, 2019.
Today, U.S. District Judge Micaela Alvarez sentenced Ramirez-Ramirez to 52 months in federal prison. Not a U.S. citizen, he is expected to face removal proceedings following his release from prison.
In handing down the sentence, the court noted the type and sheer quantity of the firearm magazines Ramirez-Ramirez smuggled to be particularly troublesome. Judge Alvarez recognized the violence south of the U.S. border and how drug trafficking organizations often rely on individuals like Ramirez-Ramirez to provide weapons or ammunition from the United States.
On Oct. 13, 2019, Ramirez-Ramirez attempted to export 1,057 AK-47 magazines and six 1911-style .38 super magazines from the United States into Mexico through the Hidalgo Port of Entry. At the time of his arrest, Ramirez-Ramirez informed agents he maintained a storage unit in Hidalgo. Law enforcement subsequently searched it and discovered numerous empty boxes of ammunition, gun cases and a 7.62x39mm round of ammunition therein.
Ramirez-Ramirez has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of Customs and Border Protection. Assistant U.S. Attorney Matthew Redavid prosecuted the case.
Laguna Heights man sentenced for child pornography chargeRead the Press Release
BROWNSVILLE, Texas - A 29-year-old Laguna Heights man has been ordered to federal prison for possessing more than 500 images of child pornography, announced U.S. Attorney Ryan K. Patrick.
Ramon Marin Jr. pleaded guilty Dec. 18, 2019.
Today, U.S. District Judge Rolando Olvera Jr. ordered him to serve 80 months in federal prison. Marin was further ordered to pay $18,000 in restitution to several known victims and will serve 20 years on supervised released following completion of his prison term, during which he will have to comply with numerous requirements designed to restrict his access to children and the internet. He has also been ordered to register as a sex offender.
On or about April 29, 2019, authorities began an undercover investigation of ongoing child exploitative crimes on the internet through the use of peer-to-peer software. They identified an IP address making child pornography available for sharing which led them to Marin’s residence. Law enforcement executed a search warrant which resulted in the seizure of various digital devices containing child pornography.
A forensic analysis revealed 539 images and 11 videos of child pornography. The Images included sexual exploitation of minors and toddlers.
Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) - Rio Grande Valley Child Exploitation Task Force conducted the investigation.
Assistant U.S. Attorney Ana Cano 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.
Houston man convicted of sex trafficking minorsRead the Press Release
HOUSTON – A federal jury sitting in Houston has convicted a 24-year-old after hearing how he threatened two young girls and required them to engage in commercial sex, announced U.S. Attorney Ryan K. Patrick.
They deliberated for approximately two and a half hours before convicting Romello Lee, 24, Houston, following less than two days of trial. He was convicted on one count of trafficking a minor for commercial sex and one count of trafficking a minor by force for commercial sex.
During trial, the jury heard that Lee used Backpage.com, a defunct solicitation website, to advertise the sexual services of two minor victims, ages 14 and 16.
From July 2017 to March 2018, Lee harbored, advertised and profited from commercial sex acts of the 16-year-old minor victim. He required her to earn a quota of up to $500 per night and would threaten and beat her if she disobeyed him.
A second victim was held against her will and required to engage in sexual acts by threats of violence and coercion.
Jurors heard from the second victim as well as another adult victim he managed. They testified as to the consequences if they were to escape and how they were expected to be branded with a tattoo of his name or rap label.
The jury also saw numerous Backpage ads Lee posted as well as Instagram posts and text messages between him and the minor victim, detailing his control of her dates, her nightly quota and her beatings.
Law enforcement ultimately arrested Lee in a sting operation with one of the minors at a hotel in northwest Houston.
U.S. District David Hittner presided over the trial and set sentencing for May 29. At that time, Lee faces a mandatory minimum of 10 years and up to life in prison for the sex trafficking of a minor as well as at least 15 years and up to life for the trafficking of minor by force.
He has been and will remain in custody pending that hearing.
The Texas Department of Public Safety, Houston Police Department and FBI conducted the investigation as part of the Human Trafficking Rescue Alliance (HTRA).
HTRA law enforcement includes members of the Houston Police Department, FBI, Immigration and Customs Enforcement’s Homeland Security Investigations, Texas Attorney General’s Office, IRS-Criminal Investigation, Department of Labor (DOL), DOL – Wage and Hour Division, Department of State, Texas Alcoholic and Beverage Commission, Texas Department of Public Safety, Department of Homeland Security – Office of Inspector General (OIG), Social Security Administration – OIG and Sheriff’s Offices in Harris and Montgomery counties in coordination with District Attorney’s offices in Harris, Montgomery and Fort Bend Counties.
Established in 2004, the United States Attorney’s office in Houston formed HTRA to combine resources with federal, state and local enforcement agencies and prosecutors, as well as non-governmental service organizations to target human traffickers while providing necessary services to those that the traffickers victimized. Since its inception, HTRA has been recognized as both a national and international model in identifying and assisting victims of human trafficking and prosecuting those engaged in trafficking offenses.
Assistant U.S. Attorneys Richard D. Hanes and Heather Winter are prosecuting the case.
Former teacher gets 10 years for two child pornography-related convictionsRead the Press Release
HOUSTON – A 49-year-old former charter school teacher has been ordered to federal prison following his convictions for coercion and enticement of a child and possession of child pornography, announced U.S. Attorney Ryan K. Patrick.
Christopher Emerson, Katy, pleaded guilty Oct. 23, 2019.
Today, U.S. District Judge Sim Lake ordered Emerson to serve a 120 months for each of the convictions. The sentences will run concurrently. He will also serve 10 years on supervised released following completion of his prison term, during which he will have to comply with numerous requirements designed to restrict his access to children and the internet. He has also been ordered to register as a sex offender.
On or about June 7, 2018, authorities were conducting an undercover investigation of ongoing child exploitative crimes on the internet through the use of peer-to-peer software. The investigation led them to an IP address making child pornography available for sharing.
They downloaded 14 videos with file names that included toddlers, 4-year-old and 9-year olds from that IP address depicting child pornography. In several of the videos, minors under the age of 8 and 12 are caused to engage in sexually-explicit conduct including oral penetration of a minor male by an adult male’s penis.
The IP address returned back to Emerson at an address in Katy.
On June 22, 2018, law enforcement executed a search warrant at his home where they learned he was living with a minor female relative and his wife. They also seized a laptop and interviewed the child. At that time, she indicated Emerson had caused her to touch his penis was she was 6 or 7 years old.
Authorities further learned of a video of the young female, naked, in her bedroom after exiting the shower that available on Emerson’s computer media. Emerson collected and filed this video along with other child pornography videos on his computer.
He attempted to rationalize his creation of the video by claiming he set up his cell phone in the minor’s bedroom to catch her taking nude photos of herself. He claimed she was sending them to others, but the investigation revealed she had not done so.
At the time of the search, law enforcement also seized the laptop. Forensic analysis revealed he possessed one image and 34 videos of child pornography. One particular video included a minor female under the age of 5.
Emerson has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation.
Assistant U.S. Attorney Sherri L. Zack 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
Construction company owner pleads guilty in $2.5M fraud schemeRead the Press Release
McALLEN, Texas – A construction company owner has admitted guilt in connection to his participation in a financial fraud scheme, announced U.S. Attorney Ryan K. Patrick.
Today, Delfino Gaona, 47, McAllen, pleaded guilty to one count of conspiring to defraud the United States and one count of failing to file a currency transaction report by a non-financial trade or business. As part of the plea, he also agreed to a criminal forfeiture of $2,587,821.66.
Gaona was the owner of Keystone Construction, based in Mission. From Dec. 1, 2014, through Nov. 14, 2018, he accepted over $10,000 in approximately 13 separate real estate transactions. However, he failed to file an IRS Form 8300 with the Secretary of the Treasury for each of the transactions. As part of his plea, he admitted to receiving more than $2.5 million and structuring the transactions and falsifying receipts in an effort to evade the reporting requirement.
Under federal law, any non-financial trade or business that received more than $10,000 in cash in one transaction or two or more related transactions must file an IRS Form 8300.
U.S. District Judge Micaela Alvarez will impose sentencing June 24. At that time, Gaona faces up to 10 years in federal prison and a possible $500,000 maximum fine for failing to file a currency transaction report. He also faces up to five years conspiracy to defraud the United States and a possible $250,000 maximum fine.
The FBI – Complex Financial Crimes Task Force conducted the investigation with the assistance of the Drug Enforcement Administration, Texas Department of Public Safety, Texas Department of Insurance Fraud Unit, Hidalgo County Sheriff’s Office and police departments in McAllen and Pharr. Assistant U.S. Attorney Roberto Lopez Jr. is prosecuting the case.
Bangladeshi National Pleads Guilty to Conspiracy to Bring Aliens to the United StatesRead the Press Release
A Bangladeshi national formally residing in Tapachula, Mexico, pleaded guilty for his role in a scheme to smuggle aliens from Mexico into the United States.
Mohamad Milon Hossain, 39, admitted that from March 2017 to June 2019, he conspired to bring, and brought, Bangladeshi nationals to the United States at the Texas border in exchange for payment. Hossain operated out of Tapachula, Mexico, where he maintained a hotel that housed aliens on their way to the United States. Hossain provided plane tickets and other assistance for the aliens to travel from Tapachula to Monterrey, Mexico where co-conspirator Moktar Hossain assisted their illegal crossing into the United States.
U.S. District Judge Diana Saldana accepted the guilty plea. Sentencing has not been scheduled.
“Hossain’s brazen scheme to smuggle Bangladeshi aliens into the United States put our national security at risk,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “This guilty plea underscores the Department’s commitment to working with our law enforcement partners here and abroad to disrupt the flow of illegal aliens into the United States and bring human smugglers to justice.”
“Border Security is national security,” said U.S. Attorney Ryan K. Patrick of the Southern District of Texas. “Our DHS law enforcement partners work on both sides of the border to make sure it is secure. The Southern District of Texas is on the front line of the fight against illegal immigration and we will continue to lead the nation in doing so.”
“This plea is a clear statement that defendants who smuggle illegal aliens across the United States border for profit will face consequences in a U.S. courtroom,” said Special Agent in Charge Shane Folden of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) San Antonio. “HSI remains committed in aggressively investigating and prosecuting members of transnational criminal organizations that exploit and endanger the people they smuggle into the United States. We will continue to work with our law enforcement partners both domestic and international to maintain the integrity of our border and the safety of our communities.”
HSI Laredo is investigating this case with assistance from the HSI Human Smuggling Unit, HSI Mexico City, HSI Houston, HSI Calexico, HSI Monterrey, U.S. Customs and Border Protection (CBP) Office of Field Operations, CBP Border Patrol and the U.S. Marshals Service. The investigation is being conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Criminal Division and HSI. The ECT program focuses on human smuggling networks that may present particular national security or public safety risks, or present grave humanitarian concerns. ECT has dedicated investigative, intelligence and prosecutorial resources. ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.
Trial Attorneys James Hepburn and Erin Cox of the Criminal Division’s Human Rights and Special Prosecutions Section are prosecuting the case with assistance from the U.S. Attorney’s Office for the Southern District of Texas.
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.