Southern District of Texas
Press releases recorded for this federal judicial district.
Local judge charged with fraudRead the Press Release
HOUSTON - A Harris County judge has been indicted on allegations of wire fraud, announced U.S. Attorney Ryan K. Patrick and Special Agent in Charge Perrye K. Turner of the FBI - Houston Division.
Judge Alexandra Smoots-Thomas, 44, of Houston, is currently the presiding judge for the 164th District Court for the State of Texas and has jurisdiction over Texas civil cases located within Harris County.
A federal grand jury returned the seven-count indictment Oct. 24, which was unsealed today as she surrendered to federal authorities. She is expected to make her initial appearance before U.S. Magistrate Judge Peter Bray today, as early as 10:00 a.m.
“The defendant in this case is a judge, whose responsibilities are to make sure the law is followed and carried out,” Turner. “She was entrusted to serve the citizens of Harris County with duty and honor. However, the allegations contained in today’s indictment show that the judge put personal enrichment over this duty and honor."
Smoots-Thomas allegedly embezzled campaign contributions individuals and political action committees had made to her re-election campaigns. The indictment alleges Smoots-Thomas repeatedly solicited campaign contributions on the premise the money would be used to help facilitate her re-election campaigns in both 2012 and 2016. She allegedly used campaign funds for non-campaign expenses to include monthly home mortgage payments, private school tuition payments, personal travel expenses, personal luxury items and cash withdrawals. Smoots-Thomas concealed this spending from both her campaign treasurer and the Texas Ethics Commission by filing false campaign finance reports, according to the charges.
Each count of wire fraud carries a possible sentence of up to 20 years in federal prison as well as a maximum $250,000 fine.
The FBI conducted the investigation. Assistant U.S. Attorneys Ralph Imperato and John Pearson are handling the matter.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Tower Research Capital LLC Agrees to Pay $67 Million in Connection with Commodities Fraud SchemeRead the Press Release
Tower Research Capital LLC (Tower), a New York, New York-based financial services firm has entered into a resolution with the Department of Justice to resolve criminal charges related to a scheme involving thousands of episodes of unlawful trading activity in U.S. commodities markets by three former traders.
Tower entered into a deferred prosecution agreement (DPA) in connection with a criminal information filed yesterday in the Southern District of Texas charging the company with one count of commodities fraud. Under the terms of the DPA, Tower agreed to pay a combined $67.4 million in criminal monetary penalties, criminal disgorgement and victim compensation with the criminal monetary penalty credited for any payments made to the Commodity Futures Trading Commission (CFTC). Tower also agreed to, among other things, conduct appropriate reviews of its internal controls and policies and procedures, and to modify its compliance program, where necessary, to ensure it is designed to deter and detect violations of the Commodity Exchange Act and commodities fraud statute.
“Traders at Tower Research Capital LLC fraudulently placed thousands of bogus orders they never intended to execute—to deceive other market participants and move the market for their own benefit,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “This agreement includes monetary penalties, the return of unjust profits, and compensation of victims to protect our nation’s commodities markets from manipulation.”
“Free markets are not open and fair when people criminally manipulate them,” said U.S. Attorney Ryan K. Patrick of the Southern District of Texas (SDTX). “Fraudsters like this will be prosecuted. This case also shows the Department’s willingness to resolve cases when industry cooperates and remediates failures of internal controls.”
“When traders seek to manipulate the commodities market for personal gain, it can cause significant and long-lasting financial consequences for law-abiding citizens,” said Special Agent in Charge Emmerson Buie Jr. of the FBI’s Chicago Field Office. “The FBI will continue to work with its prosecutorial partners to safeguard the market from unlawful influence and hold violators accountable.”
According to court documents filed as part of the DPA, from approximately March 2012 until December 2013, three traders who were members of a single trading team at Tower engaged in a scheme to defraud other participants in the markets for E-Mini S&P 500, E-Mini NASDAQ 100 and E-Mini Dow futures contracts (collectively, E‑Mini futures contracts). The S&P 500 and NASDAQ 100 future contracts were traded on the Chicago Mercantile Exchange, while the Dow futures contracts were traded on the Chicago Board of Trade. On thousands of occasions throughout this period, the traders fraudulently placed orders to buy and sell the E-Mini futures contracts with the intent to cancel those orders before execution, including in an attempt to profit by deceiving other market participants. By placing these orders, the traders intended to, and did, inject false and misleading information about the genuine supply and demand for E-Mini futures contracts into the markets, which deceived other market participants into believing something untrue, namely that the visible order book accurately reflected market-based forces of supply and demand. This false and misleading information was intended to, and at times did, trick other market participants into reacting to the apparent change and imbalance in supply and demand by buying and selling E-Mini futures contracts at quantities, prices and times they otherwise likely would not have traded. The Department and Tower have filed a joint motion, which is subject to approval by the Court, to defer for the term of the DPA any prosecution and trial of the criminal information filed against Tower.
A number of significant factors contributed to the Department’s criminal resolution with Tower, including the company’s cooperation with the United States and Tower’s extensive remedial efforts. Tower also swiftly moved in early 2014 to terminate the three traders, made significant investments in sophisticated trade surveillance tools, increased legal and compliance resources, revised the company’s corporate governance structures and changed its senior management.
The CFTC announced today a separate settlement with Tower in connection with a related, parallel proceeding. Under the terms of that resolution with the CFTC, Tower agreed to pay approximately $67.4 million, which includes a civil monetary penalty of $24.4 million, as well as restitution and disgorgement that will be credited for any such payments made to the Department. In addition, the CFTC order imposes upon Tower other remedial and cooperation obligations in connection with any CFTC investigation pertaining to the underlying conduct.
The three traders are Kamaldeep Gandhi, 37, and Krishna Mohan, 34, both of New York, New York, and Yuchun (Bruce) Mao, 40, a citizen of the People’s Republic of China. As part of the investigation, the Department obtained an indictment against Mao in October 2018 with charges pending in the SDTX. An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
On Nov. 2, 2018, Gandhi pleaded guilty to two counts of conspiracy to engage in wire fraud, commodities fraud and spoofing. His sentencing is scheduled for Feb. 7, 2020, before SDTX U.S. District Judge Ewing Werlein Jr. On Nov. 6, 2018, Mohan pleaded guilty to one count of conspiracy to engage in wire fraud, commodities fraud and spoofing, and his sentencing is scheduled for Feb. 13, 2020, before U.S. District Judge Gray H. Miller of the SDTX.
The FBI’s Chicago Field Office investigated this case. Trial Attorney Matthew F. Sullivan and Assistant Chief Avi Perry of the Criminal Division’s Fraud Section and SDTX Assistant U.S. Attorney John R. Lewis prosecuted the case. The CFTC’s Division of Enforcement referred the matter to the Department and provided assistance in this matter.
Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website at https://www.justice.gov/criminal-vns/case/tower-research-dpa or call (888) 549-3945.
Tower Research Capital Agrees to Pay $67 Million in Connection to Commodities Fraud SchemeRead the Press Release
HOUSTON – Tower Research Capital LLC, a New York, New York-based financial services firm has entered into a resolution with the Department of Justice to resolve criminal charges related to a scheme involving thousands of episodes of unlawful trading activity in U.S. commodities markets by three former traders.
Tower entered into a deferred prosecution agreement (DPA) in connection with a criminal information filed in the Southern District of Texas (SDTX) charging the company with one count of commodities fraud. Under the terms of the DPA, Tower agreed to pay a combined $67.4 million in criminal monetary penalties, criminal disgorgement and victim compensation with the criminal monetary penalty credited for any payments made to the Commodity Futures Trading Commission (CFTC). Tower also agreed to, among other things, conduct appropriate reviews of its internal controls and policies and procedures and to modify its compliance program, where necessary, to ensure it is designed to deter and detect violations of the Commodity Exchange Act and commodities fraud statute.
“Traders at Tower Research Capital LLC fraudulently placed thousands of bogus orders they never intended to execute—to deceive other market participants and move the market for their own benefit,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “This agreement includes monetary penalties, the return of unjust profits and compensation of victims to protect our nation’s commodities markets from manipulation.”
“Free markets are not open and fair when people criminally manipulate them,” said U.S. Attorney Ryan K. Patrick of the Southern District of Texas. “Fraudsters like this will be prosecuted. This case also shows the department’s willingness to resolve cases when industry cooperates and remediates failures of internal controls.”
“When traders seek to manipulate the commodities market for personal gain, it can cause significant and long-lasting financial consequences for law-abiding citizens,” said Special Agent in Charge Emmerson Buie Jr. of the FBI’s Chicago Field Office. “The FBI will continue to work with its prosecutorial partners to safeguard the market from unlawful influence and hold violators accountable.”
According to court documents filed as part of the DPA, from approximately March 2012 until December 2013, three traders who were members of a single trading team at Tower engaged in a scheme to defraud other participants in the markets for E-Mini S&P 500, E-Mini NASDAQ 100 and E-Mini Dow futures contracts (collectively, E Mini futures contracts). The S&P 500 and NASDAQ 100 future contracts were traded on the Chicago Mercantile Exchange, while the Dow futures contracts were traded on the Chicago Board of Trade.
On thousands of occasions throughout this period, the traders fraudulently placed orders to buy and sell the E-Mini futures contracts with the intent to cancel those orders before execution, including in an attempt to profit by deceiving other market participants. By placing these orders, the traders intended to, and did, inject false and misleading information about the genuine supply and demand for E-Mini futures contracts into the markets. This deceived other market participants into believing something untrue, namely, that the visible order book accurately reflected market-based forces of supply and demand. This false and misleading information was intended to, and at times did, trick other market participants into reacting to the apparent change and imbalance in supply and demand by buying and selling E-Mini futures contracts at quantities, prices and times they otherwise likely would not have traded.
The department and Tower have filed a joint motion, which is subject to the court’s approval, to defer for the term of the DPA any prosecution and trial of the criminal information filed against Tower.
A number of significant factors contributed to the criminal resolution with Tower, including the company’s cooperation with the United States and Tower’s extensive remedial efforts. Tower also swiftly moved in early 2014 to terminate the three traders, made significant investments in sophisticated trade surveillance tools, increased legal and compliance resources, revised the company’s corporate governance structures and changed its senior management.
The CFTC announced a separate settlement with Tower today in connection with a related, parallel proceeding. Under the terms of that resolution with the CFTC, Tower agreed to pay approximately $67.4 million, which includes a civil monetary penalty of $24.4 million as well as restitution and disgorgement that will be credited for any such payments made to the department. In addition, the CFTC order imposes upon Tower other remedial and cooperation obligations in connection with any CFTC investigation pertaining to the underlying conduct.
The three traders are Kamaldeep Gandhi, 37, and Krishna Mohan, 34, both of New York, New York, and Yuchun (Bruce) Mao, 40, a citizen of the People’s Republic of China. As part of the investigation, the department obtained an indictment against Mao in October 2018 with charges pending in the SDTX. An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
On Nov. 2, 2018, Gandhi pleaded guilty to two counts of conspiracy to engage in wire fraud, commodities fraud and spoofing. His sentencing is scheduled for Feb. 7, 2020, before SDTX U.S. District Judge Ewing Werlein Jr. On Nov. 6, 2018, Mohan pleaded guilty to one count of conspiracy to engage in wire fraud, commodities fraud and spoofing. His sentencing is scheduled for Feb. 13, 2020, before SDTX U.S. District Judge Gray H. Miller.
The FBI’s Chicago Field Office investigated this case. Trial Attorney Matthew F. Sullivan and Assistant Chief Avi Perry of the Criminal Division’s Fraud Section and SDTX Assistant U.S. Attorney John R. Lewis prosecuted the case. The CFTC’s Division of Enforcement referred the matter to the department and provided assistance in this matter.
The Criminal Division’s Fraud Section plays a pivotal role in the Department of Justice’s fight against white-collar crime around the country.
Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website at or call (888) 549-3945.
San Jacinto County Man gets significant time for sexually exploiting young childrenRead the Press Release
HOUSTON – A 27-year-old man from San Jacinto County has received a 35-year prison term following his convictions of producing and possessing child pornography, announced U.S. Attorney Ryan K. Patrick.
James Robert Tumlinson pleaded guilty April 23.
Today, U.S. District Judge Keith P. Ellison downwardly departed from the U.S. Sentencing Guidelines and ordered Tumlinson to serve 360 months for each count of the sexual exploitation of a child, otherwise known as production of child pornography. Those sentences will run concurrently. He also received another 60 months for the possession charge which were ordered to be served consecutively for a total of 420 months in federal prison.
At the hearing, the court heard evidence regarding a pattern of abuse which rendered Tumlinson a repeat and dangerous sex offender. The government contended Tumlinson had sexually abused four other minors in addition to the two victims for which he was convicted. All four were either family members or children to whom he had access. The abuse spanned for several years.
The defense asked Judge Ellison for mercy and attempted to convince the court Tumlinson had remorse and was “treatable.” Tumlinson himself apologized for his actions, said he was not the monster he was accused of being and wanted to prove he could be better.
However, the government implored the court to hold Tumlinson accountable for the pain and trauma he caused to the young victims of his “atrocious” crimes, noting what he stole from the children cannot be replaced. The government said the guidelines were appropriate under the circumstances and that it was important to send a message to society these crimes should not be tolerated. Judge Ellison heard that each victim deserved justice after Tumlinson had violated these children then memorialized it in video.
The court also heard from the victims’ grandmother, who detailed the children’s suffering. She told the court how scared the young female victim is and how she asks almost every day if Tumlinson will get out and hurt her again.
Following the 35-year prison term, Tumlinson will be on supervised release for the rest of his life, 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.
Restitution will determined at a later date.
Tumlinson came to the attention of law enforcement after a mother of two minors reported possible abuse of her children. She stated her daughter said Tumlinson had been sexually abusing her and her younger brother. Her brother was reportedly too scared to tell anyone but she was not.
Authorities executed a search warrant, at which time they seized phones and computer media from Tumlinson’s residence. Forensic analysis yielded 6,585 images and 1,322 videos depicting child pornography.
Eight of the videos Tumlinson produced himself. Some of these depict Tumlinson violating at least two different minors via oral, vaginal and anal penetration. These videos run for a total of 38 minutes and 36 seconds. In one of the videos, Tumlinson is heard telling a minor male victim to “relax” and “it will be over soon” as he is seen anally raping the child.
The mother of the children identified both victims seen in the videos who were approximately 6 and 4 at the time.
Tumlinson 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 San Jacinto County Sheriff’s Office and the FBI conducted the investigation.
Assistant U.S. Attorney Sherri L. Zack 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.
Meth trafficker gets more than 11 years in federal prisonRead the Press Release
CORPUS CHRISTI, Texas - A 24-year-old Edinburg man has been ordered to prison following his conviction of trafficking meth, announced U.S. Attorney Ryan K. Patrick.
Enrique Alessandro Quintero pleaded guilty Aug. 6.
Today, U.S. District Judge David S. Morales handed Quintero a 135-month sentence to be immediately followed by five years of supervised release. In handing down the sentence, the court noted the quantity of drugs.
On or about April 10, Quintero drove a Chevrolet pickup truck towing a trailer through the U.S. Border Patrol Checkpoint near Falfurrias. After a service K-9 alerted to the vehicle, law enforcement discovered the gas tank concealed 15 bundles of pure meth.
The narcotics weighed approximately 4.778 kilograms with an estimated street value in excess of $50,000. Two additional bundles of heroin were also hidden in the gas tank.
Quintero had previously been on bond but found to have violated those conditions after he failed to appear for a court setting. The court then ordered him into custody where he has been and will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration and Customs and Border Protection conducted the investigation. Assistant U.S. Attorney Reid Manning is prosecuting the case.
Crime Stoppers tip leads to heavy federal sentence for armed robberRead the Press Release
HOUSTON – A Houston man has been ordered to prison following his conviction related to his theft of guns from two local pawn shops during armed robberies, announced U.S. Attorney Ryan K. Patrick.
Jacoby West, 27, pleaded guilty in February 2019.
Today, U.S. District Judge Sim Lake handed West a 168-month sentence for the robberies. He also received an additional 84 months for using a firearm during and in relation to a crime of violence which must be served consecutively to the other sentence imposed. The 21-year sentence will be immediately followed by five years of supervised release. West was also ordered to pay restitution for the cash he stole and unrecovered firearms in addition to victims’ counseling expenses.
At the hearing today, the court heard West had recruited juvenile co-conspirators and organized the robberies which involved the carjacking of a truck to use as a getaway vehicle. The court also considered victim impact statements as well as dog bite injuries a Pearland Police Department (PPD) officer had sustained as he pursued West’s co-conspirators. The officer required 48 stitches.
A Crime Stoppers tip led to West’s arrest for his involvement in the Dec. 22, 2016, armed robbery of Cash America Pawn #66 on South Wilcrest Drive in Houston and June 26, 2017, robbery of Money Mart Pawn & Jewelry on Broadway Street in Pearland.
West and others stole a total of 40 firearms in the two robberies as well as a significant amount of cash. T0 date, authorities have recovered 25 of those weapons.
West has been and will remain in custody.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, Pearland Police Department and Houston Police Department conducted the investigation. Assistant U.S. Attorney Carrie Wirsing prosecuted the case which was brought as part of the Department of Justice’s Project Safe Neighborhoods (PSN), a nationwide program to reduce gun and gang crime in America and the Houston Law Enforcement Violent Crime Initiative which seeks to proactively fight violent crime across the Greater Houston area.
Three Individuals, Including A Former Texas Mayor, CEO and Owner, Found Guilty in a $154 Million Money Laundering and Health Care Fraud SchemeRead the Press Release
A federal jury found three individuals associated with dozens of hospice and home health companies guilty today for their roles in a $154 million health care fraud scheme, one of which was a mayor in Texas at the time.
After a three-week trial, the jury found Rodney Mesquias, 47, of San Antonio, Texas, Henry McInnis, 47, of Harlingen, Texas, and Francisco Pena, 82, of Laredo, Texas, guilty of one count of conspiracy to commit health care fraud and one count of conspiracy to commit money laundering. In addition, Mesquias and McInnis were found guilty of six counts of health care fraud and one count of conspiracy to obstruct justice. Pena was also convicted of one count of health care fraud, obstruction of health care investigations and one count of false statements, while Mesquias and Pena were each convicted of one count of conspiracy to pay and receive kickbacks.
U.S. District Judge Rolando Olvera presided over the trial and set sentencing for June 17, 2020.
“Rodney Mesquias and his co-conspirators preyed on the most vulnerable population – those in need of hospice and home health care– to line their pockets with millions of dollars and engage in lavish spending,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “I thank our law enforcement partners for their hard work and dedication to bringing these health care fraudsters to justice. We look forward to continuing our partnership as we expand the Strike Force into the Rio Grande Valley.”
“It’s disgusting how these three made millions by lying about and manipulating people’s end of life care,” said U.S. Attorney Ryan K. Patrick of the Southern District of Texas. “These men won’t have season tickets or nice cars where they are headed.”
“Hospices should provide meaningful quality of life care for patients in the final stage of their disease. Rather than help these vulnerable patients, Mesquias and McInnis operating as the Merida Health Care Group along with Dr. Francisco Pena, exploited them and their families to steal millions of dollars from the American taxpayer,” said Special Agent in Charge Christopher Combs of the FBI’s San Antonio Field Office. “The FBI is committed to aggressively investigating and bringing to justice those who undermine our health care system.”
“The decision to provide hospice services should be based on a patient’s medical condition and desire for palliative care, not the selfish motives of hospice executives intending to line their own pockets,” said Special Agent in Charge C.J. Porter for the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Region. “Our agency will continue to protect Medicare patients and Medicare itself from such unscrupulous individuals.”
According to evidence presented at trial, from 2009 to 2018, Mesquias, McInnis and Pena engaged in a scheme that involved over $150 million in false and fraudulent claims for hospice and other health care services. Mesquias owned and controlled the Merida Group, a large health care company that operated dozens of locations throughout Texas. McInnis was CEO. Pena, a licensed physician, was a medical director for the Merida Group and was at the time the mayor of Rio Bravo, Texas. According to evidence presented at trial, the Merida Group enrolled patients with long-term incurable diseases, such as Alzheimer’s and dementia, at group homes, nursing homes, and in housing projects by falsely telling them that they had less than six months to live, and sent chaplains to lie to the patients and discuss last rites and preparation for their imminent death. In fact, the patients were not suffering from a terminal illness that was expected to result in their death within six months, as is required to qualify for hospice services, and were in some instances walking, driving, working and even coaching athletic sporting events, the evidence at trial showed. However, the defendants kept the patients on services for multiple years in order to increase revenue. Mesquias also fired employees who refused to go along with the fraud, and directed them not to “[expletive] with his patients, or [expletive] with his money” by discharging patients from services, the evidence at trial showed. Pena told a cooperating witness that, with respect to hospice patients, “the way you make money is by keeping them alive as long as possible,” according to trial testimony.
The evidence further established that Pena gave a false statement to the FBI and directed others to obstruct the FBI’s investigation by covering up Pena’s involvement in accepting kickbacks for hospice patients from his mayoral office at Rio Bravo City Hall and elsewhere. The evidence also established that Mesquias and McInnis obstructed justice by causing the creation of false and fictitious medical records and produced them to a federal grand jury in order to avoid Indictment. The records added false diagnostic information making it appear that patients were dying when, in fact, they were not.
According to evidence presented at trial, the scheme involved laundering the proceeds of the fraud by, for example, placing a company in the name of the girlfriend of a co-conspirator physician to conceal the distribution of hundreds of thousands of dollars in illegal kickbacks that were provided to the physician in exchange for home health and hospice referrals. Mesquias and McInnis used proceeds derived from the scheme to purchase expensive vehicles such as a Porsche, expensive jewelry, luxury clothing from high-end retailers such as Louis Vuitton, exclusive real estate, season tickets for premium seating to see the San Antonio Spurs and a security detail and bottle service at high end Las Vegas nightclubs such as Hakkasan and Omnia, the evidence showed. Mesquias and McInnis treated physicians to lavish parties at these elite nightclubs, plying them with tens of thousands of dollars in alcohol and other perks in exchange for medically unnecessary patient referrals.
Mesquias caused kickbacks and bribes to be paid to medical directors, including Pena, for the Merida Group’s affiliated entities in exchange for certifying that patients qualified for services when, in fact, they did not, and for referring patients for such services, the evidence showed.
HHS-OIG’s McAllen Field Office; the FBI’s San Antonio Field Office, including the Laredo and McAllen Resident Agency Offices; and the Texas Health and Human Services Commission investigated the case with the assistance of the Texas Attorney General’s Medicaid Fraud Control Unit. Trial Attorney Kevin Lowell and Assistant Chief Jacob Foster of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Andrew Swartz of the Southern District of Texas are prosecuting the case.
The Fraud Section leads the 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 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.
South Texas trucker on his way to prison for trafficking cocaineRead the Press Release
CORPUS CHRISTI, Texas – A 37-year-old Alton resident has been ordered to federal prison following his conviction for conspiring to smuggle nearly 20 kilograms of cocaine, announced U.S. Attorney Ryan K. Patrick.
Eddy Garcia-Abreu pleaded guilty July 30.
Today, U.S. District Judge Nelva Gonzales Ramos handed Garcia-Abreu a 120-month sentence to be immediately followed by five years of supervised release. In handing down the sentence, the court noted that at the time of the offense, Garcia-Abreu was still on supervised release from a prior alien smuggling conviction.
On May 19, authorities stopped Garcia-Abreu for a routine safety inspection. He immediately became nervous as they examined the tractor-trailer he was driving. They soon discovered a modification to the king pin area where the trailer was attached to the tractor and immediately called a K-9. It alerted to the vehicle. Law enforcement unhitched the trailer and found 20 bundles inside a hidden compartment containing 19.8 kilograms of cocaine.
The narcotics have an estimated street value of $500,000.
Garcia-Abreu has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with assistance from Texas Department of Public Safety. Assistant U.S. Attorney Joel Dunn prosecuted the case.
Hebbronville man guilty of smuggling nearly 130 pounds of marijuanaRead the Press Release
LAREDO, Texas – A 48-year-old resident of Hebbronville has entered a guilty plea to conspiring to possess with intent to deliver 58.5 kilograms of marijuana, announced U.S. Attorney Ryan K. Patrick.
Jaime Saul Benavides admitted he knowingly attempted to smuggle the narcotics through the a Border Patrol (BP) checkpoint.
On Aug. 11, Benavides attempted to drive a tan Chevrolet pick-up truck through the Border Patrol Checkpoint near Hebbronville. Upon arrival, a K-9 alerted to the possible presence of concealed narcotics in the truck. Authorities conducted an X-ray examination which revealed anomalies in the truck’s diesel tank. They found a hidden trap door connecting the toolbox to the diesel tank which resulted in the discovery of nine bundles of marijuana.
The drugs had a total weight of weighing 58.5 kilograms with an estimated street value of $48,000.
Sentencing will be set at a later date before U.S. District Judge Diana Saldaña has At that time, Benavides faces up to 30 years in prison as well as a possible $2 million maximum fine.
He has been and will remain in custody pending that hearing.
The Drug Enforcement Administration conducted the investigation with the assistance of Border Patrol. Assistant U.S. Attorney Michael Makens is prosecuting the case.
Former Texas mayor and two others found guilty in $150 million money laundering and health care fraud schemeRead the Press Release
McALLEN, Texas - A federal jury found three men associated with a Texas health care company guilty today for their roles in a $150 million health care fraud scheme, one of which was a mayor in Texas at the time.
After a three-week trial, the jury found Rodney Mesquias, 47, San Antonio, Henry McInnis, 47, Harlingen, and Francisco Pena, 82, Laredo, guilty of one count of conspiracy to commit health care fraud and one count of conspiracy to commit money laundering. In addition, Mesquias and McInnis were found guilty of six counts of health care fraud and one count of conspiracy to obstruct justice. Pena was also convicted of one count of health care fraud, obstruction of health care investigations and one count of false statements, while Mesquias and Pena were each convicted of one count of conspiracy to pay and receive kickbacks.
U.S. District Judge Rolando Olvera presided over the trial and set sentencing for June 17.
“Rodney Mesquias and his co-conspirators preyed on the most vulnerable population – those in need of hospice and home health care – to line their pockets with millions of dollars and engage in lavish spending,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “I thank our law enforcement partners for their hard work and dedication to bringing these health care fraudsters to justice. We look forward to continuing our partnership as we expand the Strike Force into the Rio Grande Valley.”
“It’s disgusting how these three made millions by lying about and manipulating people’s end of life care,” said U.S. Attorney Ryan K. Patrick of the Southern District of Texas (SDTX). “These men won’t have season tickets or nice cars where they are headed.”
“Hospices should provide meaningful quality of life care for patients in the final stage of their disease. Rather than help these vulnerable patients, Mesquias and McInnis operating as the Merida Health Care Group along with Dr. Francisco Pena, exploited them and their families to steal millions of dollars from the American taxpayer,” said Special Agent in Charge Christopher Combs of the FBI’s San Antonio Field Office. “The FBI is committed to aggressively investigating and bringing to justice those who undermine our health care system.”
“The decision to provide hospice services should be based on a patient’s medical condition and desire for palliative care, not the selfish motives of hospice executives intending to line their own pockets,” said Special Agent in Charge C.J. Porter for the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Region. “Our agency will continue to protect Medicare patients and Medicare itself from such unscrupulous individuals.”
According to evidence presented at trial, from 2009 to 2018, Mesquias, McInnis and Pena engaged in a scheme that involved over $150 million in false and fraudulent claims for hospice and other health care services. Mesquias owned and controlled the Merida Group, a large health care company that operated dozens of locations throughout Texas. McInnis was CEO. Pena, a licensed physician, was a medical director for the Merida Group and was at the time also the mayor of Rio Bravo. According to evidence presented at trial, the Merida Group enrolled patients with long-term incurable diseases, such as Alzheimers and dementia, at group homes, nursing homes and in housing projects by falsely telling them they had less than six months to live and sent chaplains to lie to the patients and discuss last rites and preparation for their imminent death. In fact, the patients were not suffering from a terminal illness that was expected to result in their death within six months, as is required to qualify for hospice services, and were in some instances walking, driving, working and even coaching athletic sporting events. However, the defendants kept the patients on services for multiple years in order to increase revenue. Mesquias also fired employees who refused to go along with the fraud and directed them not to “[expletive] with his patients, or [expletive] with his money” by discharging patients from services. Pena told a cooperating witness that, with respect to hospice patients, “the way you make money is by keeping them alive as long as possible,” according to trial testimony.
The evidence further established Pena gave a false statement to the FBI and directed others to obstruct the FBI’s investigation by covering up Pena’s involvement in accepting kickbacks for hospice patients from his mayoral office at Rio Bravo City Hall and elsewhere. The evidence also established that Mesquias and McInnis obstructed justice by causing the creation of false and fictitious medical records and produced them to a federal grand jury in order to avoid indictment. The records added false diagnostic information making it appear that patients were dying when, in fact, they were not.
According to evidence presented at trial, the scheme involved laundering the proceeds of the fraud. For example, they placed a company in the name of the girlfriend of a co-conspirator physician to conceal the distribution of hundreds of thousands of dollars in illegal kickbacks that were provided to the physician in exchange for home health and hospice referrals. Mesquias and McInnis used proceeds derived from the scheme to purchase expensive vehicles such as a Porsche, expensive jewelry, luxury clothing from high-end retailers such as Louis Vuitton, exclusive real estate, season tickets for premium seating to see the San Antonio Spurs, and a security detail and bottle service at high end Las Vegas nightclubs such as Hakkasan and Omnia. Mesquias and McInnis treated physicians to lavish parties at these elite nightclubs, plying them with tens of thousands of dollars in alcohol and other perks in exchange for medically unnecessary patient referrals.
Mesquias caused kickbacks and bribes to be paid to medical directors, including Pena, for the Merida Group’s affiliated entities in exchange for certifying that patients qualified for services when, in fact, they did not, and for referring patients for such services.
HHS-OIG’s McAllen Field Office; the FBI’s San Antonio Field Office, including the Laredo and McAllen Resident Agency Offices; and the Texas Health and Human Services Commission investigated the case with the assistance of the Texas Attorney General’s Medicaid Fraud Control Unit. Trial Attorney Kevin Lowell and Assistant Chief Jacob Foster of the Criminal Division’s Fraud Section and SDTX Assistant U.S. Attorney Andrew Swartz 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 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.
Septuagenarian guilty of stealing deceased parents’ benefitsRead the Press Release
HOUSTON – A federal jury has convicted a 70-year-old Houston man of fraudulently taking government money for more than 20 years, announced U.S. Attorney Ryan K. Patrick.
The jury deliberated for less than an hour before convicting Fred Samson following a two-day trial.
Samson’s parents passed away in Poland in 1995. However, the Social Security Administration (SSA) was unaware of this and believed they still resided in Houston. As such, SSA continued to pay their monthly retirement benefits.
The government provided evidence and testimony demonstrating Samson wrongly collected these benefits that were intended for his deceased parents.
The jury saw copies of U.S. Treasury checks with endorsements containing Samson’s signature. Bank records also revealed Samson opened a joint bank account in his and his mother’s name more than a decade after she had passed away and directed her monthly benefits into that account. Witness testimony detailed withdrawals made from accounts held in both his parents’ names. Samson was the only person who had made those withdrawals.
In 2016, SSA attempted to contact Samson’s father at his address of record in Houston. The jury heard testimony Samson had claimed, falsely, that his parents moved to Poland two years prior.
The jury also heard about several inconsistent statements Samson made over the course of the investigation. He first claimed he had been sending the money to Poland, but later said he was using the money because his parents gave him permission to do so. He also stated he had been using the funds since 2000, but later admitted he had done so since they had passed away.
He later acknowledged he wrote a letter to SSA saying his parents were still alive, admitting he was afraid of getting in trouble and did not have the money to pay it back.
At trial, Samson tried to claim he had been unaware his parents had passed away. He said he had a falling out with his family and had not spoken with his parents since they moved back to Poland in the early ‘90s. He also argued there was a language barrier and may not have understood details he discussed with authorities.
The jury did not believe Samson’s claims and found him guilty as charged.
Authorities estimate Samson illegally claimed more than $90,000 in government funds as a result of the scheme.
U.S. District Judge Sim Lake presided over the trial and set sentencing for February 2020. At that time, Samson faces up to 10 years in federal prison as well as a possible $250,000 maximum fine. He may be required to also pay restitution to SSA. Samson was permitted to remain on bond pending that hearing.
SSA-OIG conducted the investigation. Special Assistant U.S. Attorney Benjamin Sandel and Assistant U.S. Attorney Michael Day are prosecuting the case.
Local woman admits to tax fraudRead the Press Release
HOUSTON – A woman has admitted she for made and subscribed to a false tax return, announced U.S. Attorney Ryan K. Patrick.
Vanessa Ben pleaded guilty today.
Ben willfully filed her U.S. Individual Income Tax return. However, upon signing the form attesting to its validity, she was aware it contained false information. She filed that return even though she knew she was not entitled to claim several items as stated, to include business income, taxable income, total tax and an income tax refund.
U.S. District Judge Hittner accepted the plea today and set sentencing for Feb. 3, 2020. At that time, Ben faces up to three years in federal prison and a possible $250,000 maximum fine.
She was permitted to remain on bond pending that hearing.
IRS - Criminal Investigation conducted the investigation. Assistant U.S. Attorney Rodolfo Ramirez is prosecuting the case.
Laredo woman admits role in smuggling cocaineRead the Press Release
LAREDO, Texas – A 40-year-old Laredoan faces up to life in prison for importing a large amount of cocaine via the Gateway to the Americas International Bridge, announced U.S. Attorney Ryan K. Patrick.
Yuriria Verastegui attempted to enter the United States July 24 driving a Ford SUV. Authorities noticed tampering with its interior quarter panels, lifted a tray to access them and found 16 bundles of cocaine.
The drugs weighed a total of approximately 16 kilograms with a value of $512,000.
Verastegui pleaded guilty to conspiracy to possess with the intent to distribute cocaine, admitting she knew there were narcotics in her vehicle and expected to be paid $9,600 for transporting them.
U.S. District Court Judge Marina Garcia Marmolejo will impose sentencing Feb. 24, 2020. At that time, Verastegui faces a minimum of 10 years and up to life imprisonment as well as a possible $10 million maximum fine. She has been in custody since her arrest where she will remain pending that hearing.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with assistance from Customs and Border Protection. Assistant U.S. Attorney Anthony J. Evans is prosecuting the cases.
Houston gang members sentenced for trafficking drugs in the HeightsRead the Press Release
HOUSTON - A federal judge has sentenced a 25-year-old Houston resident to 19 years in prison following his convictions for meth distribution and possessing a firearm in furtherance of a narcotics conspiracy, announced U.S. Attorney Ryan K. Patrick along with Special Agent in Charge Fred Milanowski of the Bureau of Alcohol, Tobacco, Firearms and Explosives and Regional Director Jason Taylor of Texas Department of Public Safety (DPS) - Criminal Investigations Division.
Elias Larry Luna pleaded guilty July 9. Also sentenced today were co-conspirators Alfonso Rios and Jesus Jimenez, both 30 and also of Houston. They had previously admitted to two counts of narcotics distribution acting in conspiracy with Luna.
Today, U.S. District Judge Nancy Atlas ordered Luna to serve a total of 228 months in federal prison which includes 168 months for the narcotics convictions and a consecutive 60 months for the related firearms charge. The 19-year sentence will be immediately followed by five years of supervised release. At the hearing, the court heard additional evidence regarding the firearms Luna sold in conjunction with the narcotics distribution. These included three semi-automatic rifles sold to an undercover agent during the investigation leading to Luna’s arrest. The court also heard about Luna’s involvement in the narcotics trafficking. In imposing the sentence, Judge Atlas noted the event leading to Luna’s arrest was the most “significant and negative transactions” she had seen.
Rios and Jimenez both received 15-year sentences.
“Removing armed drug traffickers from the streets will have an immediate impact on the greater Houston community,” said Milanowski. “We will continue our work to dismantle drug trafficking organizations through our partnerships with local, state and federal authorities.”
"DPS worked collaboratively with our federal, state and local agency partners to disrupt a violent drug trafficking organization," said Taylor. "DPS Criminal Investigations Division special agents, analysts and several other members of the department worked many hours throughout this investigation, and their work has helped make Texas safer."
At the time of his plea, Luna admitted he took part in a drug trafficking conspiracy to distribute approximately 13 kilograms of meth in the Heights neighborhood of Houston in September 2018. Luna also admitted he was armed with a firearm during the conspiracy.
In August 2018, authorities began investigating Luna for trafficking narcotics in the Houston area. The investigation culminated in a September 2018 sting operation resulting in his arrest and that of his co-conspirators while attempting to sell approximately 13 kilograms of meth for $95,250. During the operation, Luna attempted to engage in the narcotics sale, while Rios and Jimenez provided counter-surveillance, attempting to conceal the drug trafficking. Despite the presence of firearms, law enforcement ultimately apprehended all three men without violence.
Luna and Rios have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
ATF and DPS led the investigation as part of a multi-agency effort through the Texas Anti-Gang Center with the assistance of the Drug Enforcement Administration and Houston Police Department. Assistant U.S. Attorney Jason Corley is prosecuting the case.
2 local meth conspiracy defendants opt for guilty pleasRead the Press Release
LAREDO, Texas – A duo accused of conspiring to possess meth now face up to life imprisonment after pleading guilty to their respective roles in the crime, announced U.S. Attorney Ryan K. Patrick.
Juan Carlos Hernandez, 38, a lawful permanent resident, and Isidro Gonzalez, 44, both of whom reside in Dallas, pleaded guilty today in federal court.
On June 15, Hernandez attempted admission into the country as a passenger on a commercial bus at the Lincoln Juarez Port of Entry in Laredo. After an x-ray revealed anomalies in one of his suitcases, a K-9 alerted to that bag. Ultimately, authorities seized 24 bottles appearing to be a legitimate beverage product. However, they actually held a total of 16.25 kilograms of liquid meth.
Gonzalez asked his friend, Hernandez, to transport the bottles from the Hernandez family home in Ocampo, Guanajuato, Mexico, to his residence in Dallas.
Gonzalez said the meth was converted from liquid to crystal form at his residence. Authorities conducted a search at that location and seized approximately 13.5 and two kilograms of liquid and crystal meth, respectively.
Sentencing for Hernandez and Gonzalez has been set for Feb. 22 and 24, respectively, before U.S. District Judge Marina Garcia-Marmolejo. At that time, they face up to life in prison as well as a possible $10 million maximum fine.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with assistance from Customs and Border Protection. Assistant U.S. Attorney Michael Bukiewicz is prosecuting the case.
Two charged in failed armored car robbery attemptRead the Press Release
HOUSTON – A pair of Houston men are set to appear in federal court for their alleged roles in the recent armored car robbery attempt at a local Walgreens, announced U.S. Attorney Ryan K. Patrick.
Corderas Simmons, 31, and Jeremy Boniaby, 28, both of Houston, are charged by criminal complaint with aiding and abetting attempted interference with commerce by robbery and aiding and abetting discharging a firearm during or in relation to that robbery. They are set to appear before U.S. Magistrate Judge Peter Bray at 1:30 p.m.
The complaint alleges that on Nov. 1, Boniaby drove a stolen white Ford F-250 with Simmons as a passenger to the Walgreens at 16233 Post Oak in Houston. Soon after, an armored Garda truck arrived for its scheduled stop. The charges allege that as soon as the driver side door of the armored truck opened, so did the rear passenger door of the stolen pickup.
Law enforcement had been following both vehicles and quickly converged on the stolen truck, according to the complaint. Boniaby allegedly fled the parking lot, drove over a median at South Post Oak and entered a strip center. The charges allege Boniaby exited the vehicle wearing gloves and a hooded sweatshirt and fled on foot. A Special Weapons and Tactics (SWAT) team pursued and took him into custody, according to the complaint. Meanwhile, Simmons allegedly exited the back seat of the vehicle and also fled on foot, wearing a mask and gloves. Shortly thereafter, he was also taken into custody.
If convicted, Simmons and Boniaby face up to 20 years in prison for the attempted interference with commerce by robbery charge. They would also receive, upon conviction, a mandatory minimum of 10 years and up to life in prison for the discharge of the firearm which must be served consecutively to any other prison term imposed.
The Houston Police Department and FBI Violent Crime Task Force conducted the investigation. Assistant U.S. Attorney Jill Stotts is prosecuting the case.
This is an example of coordination between law enforcement who are part of the Houston Law Enforcement Violent Crime Initiative which combines personnel and resources from numerous federal, state and local agencies. The goal is to proactively fight and reduce violent crime across the Greater Houston area by targeting the region’s most violent offenders, augmenting investigative and prosecutorial efforts, and enhancing training, public awareness and education.
Louisiana felon guilty of gun violation in Corpus ChristiRead the Press Release
CORPUS CHRISTI, Texas – A 23-year-old resident of Louisiana has admitted he unlawfully possessed a firearm following a previous felony conviction, announced U.S. Attorney Ryan K. Patrick.
Blake Wain was previously convicted of multiple felony offenses out of Louisiana to include false imprisonment armed with a deadly weapon, conspiracy to commit robbery and possession with intent to distribute meth. Per federal law, he is prohibited from possession of a firearm due to these convictions.
Wain was on parole for these offenses July 12 when authorities found and arrested him for a violation of that parole. He was sitting in a vehicle’s passenger seat. At his feet was a Glock, model 33, .357 caliber semi-automatic pistol.
He admitted the weapon was his.
U.S. District Judge David Morales has set sentencing for Feb. 4, 2020. At that time, Wain faces a minimum of 15 years and up to life in federal prison.
Wain has been and will remain in custody pending that hearing.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Marshals Fugitive Task Force and Corpus Christi Police Department conducted the investigation. Assistant U.S. Attorney Sara Popejoy is prosecuting the case.
Final men sentenced for robbing local business with a firearmRead the Press Release
CORPUS CHRISTI, Texas – Two Corpus Christi men have been ordered to federal prison after admitting to robbery and brandishing a firearm in furtherance of a crime of violence, announced U.S. Attorney Ryan K. Patrick.
Corey Alexander Newman, 26, pleaded guilty Jan. 31, while Francisco Chavera, 22, pleaded guilty July 8. Both admitted to their participation in a robbery at the Texas Food Mart in the 6100 block of Williams Aug. 5, 2018, along with Matthew Joseph Bryant, 25, and Nathealle Avori Tyrell Jones, 22, both of Corpus Christi.Today, Senior U.S. District Judge Janis Graham Jack handed Chavera a 30-month sentence for the robbery. He also received an additional 84 months for the firearms charge which must be served consecutively to the other sentence imposed. The sentences will be immediately followed by five years of supervised release. Newman received a 10-month sentence for the robbery and an additional and consecutive 36 months for the firearms charge. The sentences will be immediately followed by three years of supervised release. In handing down the sentences, the court noted the dangerousness of the offense and the need to protect the public.
Senior U.S. District Judge Janis Graham Jack previously sentenced Bryant and Jones each to a total of 114 months in prison as well as five years of supervised release following completion of their sentences.
Officers responded to the aggravated robbery and observed a vehicle matching the reported description of the suspects’ vehicle and attempted to conduct a traffic stop. The vehicle fled until crashing into a utility pole, at which time all four occupants ran. After a short foot pursuit, authorities arrested all four individuals.
At that time, law enforcement searched the vehicle and the surrounding area and discovered U.S. currency, convenience store items, cigarettes, disposable gloves and a loaded handgun with an extended magazine.
Surveillance footage at the location showed two males wearing dark clothing and bandanas covering their faces had entered the store. As one male, who was later identified as Bryant, stayed by the front door and pointed a handgun at the clerk. The other male, later confirmed to be Chavera, went behind the counter and emptied the cash register into a bag along with cigarettes and flavored cigars. Both men then took the clerk’s cellular phone and wallet before leaving the store and fleeing in a dark colored sedan Jones was driving.
Newman and Chavera have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.The Corpus Christi Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney Lance Watt is prosecuting the case.
Oil Executives Plead Guilty for Roles in Bribery Scheme Involving Foreign OfficialsRead the Press Release
The former CEO and chief operations officer (COO) of a Monaco-based intermediary company have pleaded guilty for their roles in a scheme to corruptly facilitate millions of dollars in bribe payments to officials in multiple countries. These included Algeria, Angola, Azerbaijan, the Democratic Republic of Congo, Iran, Iraq, Kazakhstan, Libya and Syria. The company’s former business development director also pleaded guilty for his role in paying bribes in Libya.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ryan K. Patrick of the Southern District of Texas, Assistant Director in Charge Timothy R. Slater of the FBI’s Washington Field Office, Inspector in Charge Adrian Gonzales of the U.S. Postal Inspection Service (USPIS) Houston Division and Special Agent in Charge D. Richard Goss of the IRS-Criminal Investigation’s (IRS-CI) Houston Field Office made the announcement.
Cyrus Ahsani, 51, and Saman Ahsani, 46, both of United Kingdom (UK), each pleaded guilty March 25 to one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA), for conspiring to facilitate bribes on behalf of companies in foreign countries in order to secure oil and gas contracts. UK resident Steven Hunter, 50, former business development director, pleaded guilty Aug. 2, 2018, to one count of conspiracy to violate the FCPA. Cyrus and Saman Ahsani are set for sentencing April 20, 2020, before U.S. District Judge Vanessa Gilmore of the Southern District of Texas. Hunter’s sentencing is scheduled for March 13, 2020, before U.S. District Judge David Hittner.
According to court documents, former U.S. resident and CEO Cyrus Ahsani and former COO Saman Ahsani managed a Monaco-based intermediary company that provided services for multinational companies operating in the energy sector. From approximately 1999 to 2016, the Ahsanis conspired with others, including multiple companies and individuals, to make millions of dollars in bribe payments to government officials in Algeria, Angola, Azerbaijan, the Democratic Republic of Congo, Iran, Iraq, Kazakhstan, Libya and Syria.
Additionally, court documents reflect Cyrus and Saman Ahsani laundered the proceeds of their bribery scheme in order to promote and conceal the schemes and to cause the destruction of evidence in order to obstruct investigations in the United States and elsewhere. Hunter participated in the conspiracy to violate the FCPA by, among other things, facilitating bribe payments to Libyan officials between about 2009 and 2015.
The FBI, IRS-Criminal Investigation and U.S. Postal Inspection Service conducted the investigation. Trial Attorneys Dennis R. Kihm, Gerald M. Moody Jr., Jonathan P. Robell and Gwendolyn A. Stamper of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Suzanne Elmilady of the Southern District of Texas are prosecuting the case. The Criminal Division’s Office of International Affairs also provided substantial assistance in this matter.
The governments of Australia, Canada, France, Guernsey, Italy, Monaco, the Netherlands, Portugal, Switzerland and UK provided significant assistance in this matter as did the U.S. Securities and Exchange Commission and Eurojust.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal-fraud/foreign-corrupt-practices-act.
Oil Executives Guilty for Roles in Bribery Scheme Involving Foreign OfficialsRead the Press Release
HOUSTON - The former CEO and chief operations officer (COO) of a Monaco-based intermediary company have pleaded guilty for their roles in a scheme to corruptly facilitate millions of dollars in bribe payments to officials in multiple countries. These included Algeria, Angola, Azerbaijan, the Democratic Republic of Congo, Iran, Iraq, Kazakhstan, Libya and Syria. The company’s former business development director also pleaded guilty for his role in paying bribes in Libya.
Cyrus Ahsani, 51, and Saman Ahsani, 46, both of United Kingdom (UK), each pleaded guilty March 25 to one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA), Conspiring to facilitate bribes on behalf of companies in foreign countries in order to secure oil and gas contracts. UK resident Steven Hunter, 50, former business development director, pleaded guilty Aug. 2, 2018, to one count of conspiracy to violate the FCPA. Cyrus and Saman Ahsani are set for sentencing April 20, 2020, before U.S. District Judge Vanessa Gilmore of the Southern District of Texas. Hunter’s sentencing is scheduled for March 13, 2020, before U.S. District Judge David Hittner.
According to court documents, former U.S. resident and CEO Cyrus Ahsani and former COO Saman Ahsani managed a Monaco-based intermediary company that provided services for multinational companies operating in the energy sector. From approximately 1999 to 2016, the Ahsanis conspired with others, including multiple companies and individuals, to make millions of dollars in bribe payments to government officials in Algeria, Angola, Azerbaijan, the Democratic Republic of Congo, Iran, Iraq, Kazakhstan, Libya and Syria.
Additionally, court documents reflect Cyrus and Saman Ahsani laundered the proceeds of their bribery scheme in order to promote and conceal the schemes and to cause the destruction of evidence in order to obstruct investigations in the United States and elsewhere. Hunter participated in the conspiracy to violate the FCPA by, among other things, facilitating bribe payments to Libyan officials between about 2009 and 2015.
The FBI, IRS-Criminal Investigation and U.S. Postal Inspection Service con ducted the investigation. Trial Attorneys Dennis R. Kihm, Gerald M. Moody Jr., Jonathan P. Robell and Gwendolyn A. Stamper of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Suzanne Elmilady of the Southern District of Texas are prosecuting the case. The Criminal Division’s Office of International Affairs also provided substantial assistance in this matter.
The governments of Australia, Canada, France, Guernsey, Italy, Monaco, the Netherlands, Portugal, Switzerland and UK provided significant assistance in this matter as did the U.S. Securities and Exchange Commission and Eurojust.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal-fraud/foreign-corrupt-practices-act.
More charged in RGV auto loan scamRead the Press Release
McALLEN, Texas – Three more individuals have been charged in connection with a long-running scheme to defraud a financial institution in a scheme to obtain car loans in the Rio Grande Valley, announced U.S. Attorney Ryan K. Patrick.
A federal grand jury returned the superseding indictment under seal Oct. 22 against Jorge Garza, 46, San Antonio; Samuel Sanchez, 55, McAllen; and Soundra Lopez, 52, Weslaco. It was unsealed in its entirety today as authorities arrested Sanchez. He is expected to make his initial appearances before U.S. Magistrate Judge Juan Alanis this morning. Garza and Lopez appeared in federal court last week following their arrests and were permitted release upon posting bond pending further criminal proceedings.
The three are charged with conspiracy to commit bank fraud.
Sanchez and Lopez allegedly provided materially false information to County and Municipal Employee’s Credit Union (CMECU) regarding borrower creditworthiness in order to fund motor vehicle purchases. Garza, Sanchez and Lopez caused CMECU to fund approximately $2,287,720 in fraudulent loans, according to the superseding indictment.
Three car dealership employees were previously charged in relation to this scheme - Ronnie Joe Gomez, 44, Pharr; David Salinas, 45, McAllen; and Jorge Villanueva 51, San Antonio.
Gomez and Salinas are charged with wire fraud, while Villanueva is charged with wire fraud against a financial institution. Garza, Sanchez and Lopez are all charged with conspiracy to commit bank fraud. Gomez and Salinas face up to 20 years in prison and a possible $250,000 maximum fine, while the remaining defendants could receive a maximum 30-year prison term and up to a $1 million potential fine, upon conviction.
The FBI conducted the investigation. Assistant U.S. Attorney Frances E. Blake 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 sent to prison for cocaine conspiracyRead the Press Release
LAREDO, Texas – A 21-year-old resident of Nuevo Laredo, Tamaulipas, Mexico, has been ordered to federal prison following his conviction for conspiring to import approximately 15 kilograms of cocaine into the United States from Mexico, announced U.S. Attorney Ryan K. Patrick.
Emmanuel Enrique Martinez-Garcia pleaded guilty Sept. 4.
Today, U.S. District Judge Marina Garcia Marmolejo imposed a sentence of 48 months and one day in prison. Not a U.S. citizen, he is expected to face removal proceedings following his imprisonment. At the hearing, the court heard additional information that detailed how he coordinated the drug smuggling event with traffickers through text messages. In handing down the sentence, the court noted Martinez-Garcia knew what he was doing when he agreed to join the conspiracy and that there was no excuse for importing cocaine into the United States.
On Dec. 10, 2018, Martinez-Garcia applied for admission into the United States via the Gateway to the Americas Bridge Port of Entry in Laredo. During secondary inspection, a K-9 inspected the vehicle and gave a positive alert to the possible presence of concealed narcotics or humans.
Authorities then conducted a non-intrusive X-ray scan of the white F-150, revealing anomalies around the rear gas tank area of the vehicle. They inspected the area and discovered multiple sealed packages wrapped in tape. They probed one of the packages and found a white powdery substance which tested positive for cocaine. Law enforcement ultimately discovered a total of 15 packages of cocaine with an approximate value of $372,000.
Martinez-Garcia has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Customs and Border Protection and Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Francisco J. Rodriguez is prosecuting the case.
Final Defendant Convicted in $189 Million Health Care Fraud ScamRead the Press Release
HOUSTON – With the plea of an 80-year-old Houston man, all 14 charged in the scam involving Continuum Healthcare and its various health centers have been convicted, announced U.S. Attorney Ryan K. Patrick.
Bobby Rouse admitted to conspiring to pay and receive kickbacks and to money laundering relating to the Medicare program today.
A total of 13 others have been convicted in relation to the scheme. A federal jury convicted Cheryl Waller, 73, of Houston, March 2, 2017, after a three-day trial on one count of conspiracy to pay and receive kickbacks and one count of receiving kickbacks. Those all convicted on the conspiracy count include Steven Houseworth, 46, James Bobino, 50, Ernestine Johnson, 60, Jackie Harris, 56, and Vermon Lacy III, 35, all of Houston; David Edson, 71, Palm Harbor, Florida; Jeffery Parsons, 60, Crockett; Aretha Johnson, 67, Wimberley; Inger Michelle Pace, 57, Missouri City; Ronald Turner, 59, Fresno; Deborah Davis, 56, Atlanta, Georgia; and Mary Browning, 71, Beasley. Edson and Parsons were also convicted of two counts of money laundering. Johnson also pleaded guilty to one count of money laundering, while Pace and Turner each further admitted to paying and receiving kickbacks.
Rouse, Houseworth, Edson and Parsons were part of the executive team for Continuum Healthcare LLC, which owned Westbury Community Hospital in Houston as well as community mental health centers in the Houston area known by their locations as Hornwood, Baytown and Missouri City.
During his plea today, Rouse admitted to participating in a kickback scheme to pay co-defendants to bring patients to Continuum. He admitted to causing Medicare to pay $18.8 million based on false and fraudulent claims.
Each location operated a partial hospitalization program (PHP). The PHP was supposed to be a treatment program for individuals with mental illness, intended to closely resemble a highly structured, short-term hospital inpatient program. However, while it was a distinct and organized intensive treatment program, it offered less than 24-hour daily care.
In 2010, Continuum opened Westbury Community Hospital with Hornwood and Baytown becoming outpatient centers and continuing to operate their existing PHPs under the Westbury name. Westbury also opened a PHP.
Rouse, Houseworth, Edson and Parsons were responsible for the day-to-day operation of Continuum/Westbury and were involved in the implementation of the various kickback programs. Numerous people were referred for treatment in exchange for payment. However, the vast majority did not qualify for PHP services, because they were not experiencing an acute psychotic episode or were actually suffering from mental retardation, dementia or Alzheimer’s.
Aretha Johnson, Pace, Bobino, Waller, Browning and Davis each owned personal care homes in Houston, while Ernestine Johnson, Harris, Lacy and Turner were marketers for Continuum. Each admitted receiving payment to refer the patients, receiving amounts ranging from $130,000 t0 $2.6 million each.
In total, Continuum billed Medicare approximately $189 million in total for fraudulent PHP services and Medicaid paid approximately $66 million on those clams.
U.S. District Judge Gray Miller accepted the plea and has set sentencing for Jan. 23, 2020, at which time Rouse faces up to 10 years in prison and a possible $250,000 maximum fine. Rouse was permitted to remain on bond pending that hearing.
The FBI, Department of Health and Human Services - Office of the Inspector General, Texas Attorney General's Medicaid Fraud Control Unit and IRS - Criminal Investigation participated in the joint investigation. Assistant U.S. Attorneys Tina Ansari and Special Assistant U.S. Attorney Justin Blan are prosecuting the case.
4 charged for illegally purchasing firearmsRead the Press Release
HOUSTON – Two women and two men residing in Houston are set to appear in federal court for making false statements during the acquisition of firearms, announced U.S. Attorney Ryan K. Patrick.
A federal grand jury returned the 29-count superseding indictment today. All were previously charged July 3. They are expected to appear again in federal court today at 10 a.m. before U.S. Magistrate Judge Peter Bray.
Maribel Santana-Cerdo, 42, Ariceli Santana, 44, Carlos Joel Hernandez, 24, and Johnny Talavera, 26, all of Houston, allegedly straw purchased 71 firearms.
“Straw purchasing” occurs when someone professes to be purchasing a firearm for themselves, when in actuality, they provide it to someone else, usually not legally able to do it themselves.
If convicted, each of the violations carries a punishment of up to 10 years imprisonment and a $250,000 maximum possible fine.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney Steven Schammel is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Laredo grand jury charges multiple people with drug, ammo and immigration crimesRead the Press Release
LAREDO, Texas – Four people face up to life in prison on recent drug charges involving meth following the return of several Laredo federal indictments, announced U.S. Attorney Ryan K. Patrick. Two men face charges for trafficking a large amount of marijuana and ammunition, while four others were allegedly involved in the transportation of illegal aliens.
All were originally charged via criminal complaints and are currently in custody. Three are set to appear before U.S. Magistrate Judge Sam Sheldon at 1 p.m. today, while others are scheduled for Oct. 31 at 1 p.m. The Laredo grand jury returned the indictments Oct. 22.
Mexican nationals Nicolas De La Garza Salinas, 50, and Miguel Angel Flores Diaz, 34; and Monica Christine Canales Rodriguez, 52, Dallas, are all charged in separate but similar cases. Each is charged with one count of conspiracy as well as importation of meth. Rodriguez also faces a third count of importing heroin. Two more cases against Mexican national Ramces Chavez-Gomez, 30, and Jose Gonzalo Ojeda, 24, Laredo, allege conspiracy and possession with intent to distribute multiple kilogram quantities of meth and marijuana, respectively. The grand jury returned a fifth indictment against Julio Cesar Vega-Amaral, 42, for smuggling ammunition into the country.
Clarence J. Lee, 60, Ellis L. Boston, 47, and Julie Perez, 33, all of San Antonio, are charged together, while the final indictment charges Sebastian Mosley, 48, Tyler. These four are all charged with conspiracy to transport illegal aliens.
On Sept. 25, Salinas allegedly attempted to entered the United States through the Lincoln-Juarez International Bridge in Laredo. The charges allege that during inspection, authorities soon discovered approximately 31.64 kilograms of a white liquid substance that tested positive for meth concealed within the gas tank.
Flores Diaz allegedly entered the United States on that same day, but at the Colombia Solidarity Bridge in Laredo, driving a tractor trailer. Authorities soon discovered anomalies in the cabin during a vehicle scan, according to the charges. The indictment alleges officials recovered 20 bundles of meth, weighing approximately 20.12 kilograms with an estimated value of more than $100,000.
Similarly, a third case alleges Rodriguez entered the United States at the Lincoln-Juarez Port of Entry in Laredo Sept. 28, driving a Toyota Four Runner. There, law enforcement noticed its four tires had anomalies and, upon inspection, found a total of 24 bundles of heroin and meth, weighing approximately 48.82 kilograms and 14.94 kilograms respectively, according to the charges. The drugs are allegedly valued at more than $1.3 million.
According to the indictment against Chavez-Gomez, Nuevo Laredo, Tamaulipas, Mexico, he attempted to drive his SUV through a Laredo checkpoint Oct. 5. Upon arrival, a K-9 alerted to the presence of narcotics, at which time authorities conducted an x-ray scan which revealed a hidden compartment near the rear seats of the vehicle, according to the charges. The compartment allegedly contained 20 bundles of meth that weighed approximately 36.3 kilos with a street value of more than $250,000.
In another separate matter, law enforcement allegedly observed six individuals carrying bundles near the Rio Grande River in Laredo July 18. The charges allege someone was driving a pickup truck towards the river. The driver, believed to be Ojeda, allegedly absconded on foot. The complaint alleges that authorities apprehended him and recovered 480 pounds of marijuana from that truck worth more than $380,000.
The grand jury indicted Vega-Amaral for smuggling ammunition via the Lincoln Juarez Bridge, Sept. 23. Law enforcement conducted an inspection of his vehicle, at which time they allegedly discovered approximately 4,300 rounds of various caliber ammunition. The charges allege it was concealed inside a speaker box and under a spare tire in the trunk of the vehicle.
Lee, Boston and Perez are charged together with conspiracy to transport illegal aliens. The criminal complaint alleges Lee attempted to drive a commercial truck through a Texas checkpoint west of Bruni. During inspection, a K-9 allegedly alerted to the presence of persons in the cargo area of the truck. An x-ray scan revealed the silhouettes of humans in the rear of the truck, according to the charges. Upon further inspection, authorities allegedly discovered a compartment hidden by a “false wall” with a small door that some utility appliances were blocking. The charges allege they eventually found 24 Mexican citizens in that compartment which had a temperature of 94 degrees. Several of those inside were allegedly sweating profusely and gasping for air. Boston and Perez had allegedly recruited Lee and had driven ahead of him through the checkpoint, acting as a scout vehicle for him.
Finally, Mosley allegedly conspired to transport illegal aliens. On Sept. 27, he attempted to cross a checkpoint driving his tractor that was towing a refrigerated trailer, according the complaint against him. During inspection, authorities allegedly noticed that two different temperature settings were displayed. Further inspection revealed he had 42 undocumented aliens inside the trailer, according to the charges.
Salinas, Diaz, Rodriguez, Chavez-Gomez all face up to life in prison if convicted as well as a maximum $10 million fine. Ojeda’s maximum sentence, upon conviction, carries a potential 40 years of imprisonment and a $5 million fine, while the remaining four could serve up to 10 years and pay up to $250,000.
Immigration and Customs Enforcement’s Homeland Security Investigations (ICE) and Customs and Border Protection conducted the investigations of Salinas, Diaz and Rodriguez, while the Drug Enforcement Administration, along with Border Patrol (BP) worked on the Chavez-Gomez and Ojeda matters. ICE also investigated the cases against the remaining four individuals with the assistance of BP.
Assistant U.S. Attorneys Brandon Scott Bowling, Brian Bajew, Jennifer Day, Paul A. Harrison and Yoona Lim are prosecuting the cases.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Former Mexican governor extradited on money laundering chargesRead the Press Release
CORPUS CHRISTI, Texas – A former Coahuila, Mexico, governor is set to appear in federal court to face charges for his role in a money laundering scheme to enrich himself and others through bribery, misappropriation and theft of public funds, announced U.S. Attorney Ryan K. Patrick.
A federal grand jury returned a superseding indictment against Jorge Juan Torres-Lopez, 65, Feb. 8, 2017. He has been in custody in Mexico since Feb. 5, 2019. Today, he was returned to the United States and is set for his initial appearance before U.S. Magistrate Judge B. Janice Ellington in Corpus Christi tomorrow at 2 p.m.
Torres-Lopez is charged in the money laundering scheme that includes offenses against a foreign nation involving bribery of a public official and misappropriation, theft and embezzlement of public funds by or for the benefit of a public official. He is also charged with bank fraud and wire fraud.
The case is related to previous civil litigation in which authorities seized two foreign bank accounts located in Bermuda. Torres-Lopez and Hector Javier Villarreal-Hernandez, his secretary of finance, allegedly opened the accounts in order to secrete stolen monies.
Sun Secured Advantage and N.T. Butterfield and Son Limited held the accounts which had more than $2 million each. As its basis for forfeiture, the government contended the funds were involved in a money laundering transaction, the property constituted or was derived from proceeds traceable to offenses including bribery of a public official or the misappropriation, theft or embezzlement of public funds by or for the benefit of a public official.
Torres-Lopez and Villarreal-Hernandez were the account holders and allegedly transferred stolen Coahuila finances from Mexico into an account in Brownsville. They later transferred the money to the Bermuda accounts, according to court documents. Villarreal-Hernandez, 48, of Saltillo, Coahuilla, Mexico, has been convicted in the Southern and Western Districts of Texas for money laundering offenses and is awaiting sentencing.
The charges allege the Mexican government employed Torres-Lopez from 1994 to 2011. His roles allegedly included work as the general director of Promotion and Development as secretary of Finance for the state of Coahuila, municipal president of Saltillo and interim governor of Coahuila. In approximately December 2005, 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 to the position of secretary of Finance for Coahuila, where he remained until his resignation in August 2011, according to court documents.
During his time in office, Mexican authorities reportedly began investigating Villarreal-Hernandez. While this commenced, U.S. officials uncovered evidence that in 2008 both Torres-Lopez and Villarreal-Hernandez allegedly opened accounts at J.P. Morgan Chase Bank in Brownsville. The charges allege they used these accounts to move monies to offshore accounts in Bermuda. The two used stolen funds from the Mexican federal government and the state of Coahuila.
If convicted of money laundering, 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. Bank fraud and wire fraud carry 30 and 20-year-terms of imprisonment, respectively, as well as up to $1 million and $250,000 in potential fines.
Multiple agencies are conducting 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. As part of the investigation, the United States sought the assistance of the Prosecutor General of the Republic of Mexico via the Mutual Legal Assistance Treaty in effect between the United States and Mexico. The Department of Justice’s Office of International Affairs also provided assistance.
Assistant U.S. Attorneys Julie K. Hampton, Jon Muschenheim and Lance A. Watt 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.Another young man charged with making online threatsRead the Press Release
BROWNSVILLE, Texas – A federal grand jury has indicted an 18-year-old resident of Harlingen for making threats to damage federal and religious buildings, announced U.S. Attorney Ryan K. Patrick.
Joel Hayden Schrimsher is charged in a six-count indictment, returned today, alleging he made threats through the internet to damage or destroy buildings and conveyed false or misleading information through the internet concerning those threats. He is expected to make his initial appearance before U.S. Magistrate Judge Ronald G. Morgan in Brownsville later this week.
Schrimser is the second young adult facing federal charges in less than a week related to making threats via social media platforms. A Corpus Christi 19-year-old was charged Oct. 24 after he made threats on his Facebook account.
“Parents must talk with their kids about the repercussions of making threats to schools and other public places,” said Patrick. “Law enforcement responses are thorough, time consuming and take finite resources to address.”
The indictment alleges Schrimsher made threats via his Twitter account indicating he intended to mail a bomb to the Federal Reserve, set a Mosque on fire and shoot at a Synagogue.
If convicted of making a threat to damage or destroy a building through the use of an instrument of interstate or foreign commerce, Schrimsher faces up to 10 years in federal prison, while conveying false or misleading information carries up to a five-year-term of federal imprisonment. Both charges could result in a $250,000 maximum possible fine.
The FBI, Cameron County District Attorney’s Office, police departments in Harlingen and Brownsville and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U. S. Attorneys Jody Young and Oscar Ponce are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Houston man heads to prison for committing two bank robberiesRead the Press Release
HOUSTON – A 34-year-old man has been ordered to federal prison following his conviction of robbing two banks in the Houston area, announced U.S. Attorney Ryan K. Patrick. William Jeffery Ellis pleaded guilty July 29.
Today, U.S. District Judge Andrew S. Hanen ordered him to prison for 46 months as to each count to run concurrently and to be immediately followed by three years of supervised release.
Authorities identified Ellis as the perpetrator of two robberies – Smart Financial on E FM 1960 in April 2019 and Comerica Bank on W FM 1960 the previous month.
In each of the robberies, an unarmed Ellis demanded money using a threatening note taped to his backpack. The employees complied because they were frightened.
The FBI and Harris County Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Jennie Basile is prosecuting the case.
This is an example of coordination between law enforcement who are part of the Houston Law Enforcement Violent Crime Initiative which combines personnel and resources from numerous federal, state and local agencies. The goal is to proactively fight and reduce violent crime across the Greater Houston area by targeting the region’s most violent offenders, augmenting investigative and prosecutorial efforts, and enhancing training, public awareness and education.
The case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.
Alleged Five Guys shooter facing federal chargesRead the Press Release
HOUSTON – A 25-year-old Houston resident is set to appear in federal court today to answer allegations he robbed a Five Guys restaurant and shot an off-duty law enforcement officer, announced U.S. Attorney Ryan K. Patrick.
Keith Thomas is expected to appear before U.S. Magistrate Judge Bryan at 10:00 am today. He is charged with interference with commerce by robbery and discharging a firearm during or in relation to that robbery.
The criminal complaint, filed Oct. 25, 2019 alleges Thomas entered the Five Guys restaurant located at 2902 Shepherd Drive in Houston with a firearm Oct. 16. There, Thomas allegedly pointed the firearm at customers and employees and demanded money. The charges allege he was able to steal cash from the cash register and from patrons.
Prior to exiting the restaurant, Thomas allegedly discharged his firearm, striking a constable who was approaching the door. The constable was off official duty with Harris County Precinct 5, but working security at the location. Thomas then fled the location, according to the complaint.
The charges allege officers found a cell phone they believed to belonged to the suspect and traced is back to Thomas. Thomas was arrested and transferred to federal custody.
If convicted, Thomas faces up to 20 years in prison for interference with commerce by robbery and a consecutive mandatory minimum of 10 years up to life in prison for firearm charge.
The Houston Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney Jill Stotts 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.Young adult charged with threats to middle school via FacebookRead the Press Release
CORPUS CHRISTI, Texas – A 19-year-old Corpus Christi resident has been charged with making threats against Grant Middle School, announced U.S. Attorney Ryan K. Patrick.
The criminal complaint was filed today, after which federal authorities took Nathanial Salinas into custody. He is expected to make his initial appearance before U.S. Magistrate Judge Jason B. Libby at 2 p.m. tomorrow.
The charges allege Salinas posted a threatening message on Facebook. On Oct. 9, Facebook user “Natedawg Salinas” allegedly posted a profanity-laden comment indicating he planned to shoot people at the school, specifically mentioning a Spanish teacher. He followed the comment with an abbreviation for “just joking.”
Law enforcement identified that user as Salinas, according to the complaint.
Salinas made the comments in response to another user who indicated problems with the Corpus Christi Independent School District (CCISD).
Following the threat, the charges allege authorities placed Grant Middle School on lockdown, causing fear amongst the students and their families. The Spanish teacher indicated shock and fear for their life, according to the complaint.
If convicted, Salinas faces up to five years in federal prison and a possible $250,000 maximum fine.
The FBI, Corpus Christi Independent School District Police Department and the Corpus Christi Police Department conducted the investigation. Assistant U.S. Attorney Brittany L. Jensen is prosecuting the case.
A complaint is an accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Bank robber released and strikes again, now heads back to prisonRead the Press Release
McALLEN, Texas – A 55-year-old McAllen resident has been ordered to federal prison after he admitted to robbing another bank, announced U.S. Attorney Ryan K. Patrick.
Joe Wayne Galipp pleaded guilty Aug. 8, 2019, admitting he robbed the Vantage Bank located on 2nd Street in McAllen.
Today, U.S. District Judge Randy Crane handed Galipp a 60-month sentence to be immediately followed by three years of supervised release. At the hearing, the court heard about a 2004 convenience store robbery and a 2013 bank robbery. After serving his federal sentence for the bank robbery, he was ordered to be on supervised release, during which time he committed the instant offense. The court revoked the remainder of that term and ordered he serve five months to be served concurrently to the current sentence. In handing down the sentence, the court noted the seriousness of Gallip’s prior criminal history and continued criminal conduct.
In May 2019, Galipp entered the Vantage Bank, approached a teller and demanded money from the till. The teller ultimately relented after his repeated commands. Galipp then placed the money in a bag he had brought with him and fled on foot.
Later that same day, law enforcement apprehended Galipp and positively identified him through security camera footage. At that time, he was in possession of the bag containing the money.
In 2013, U.S. District Judge Andrew Hanen sentenced Galipp to a 41-month sentence for the previous bank robbery. Galipp had entered a Bank of America in Harlingen, dressed in a trench coat, hat and sunglasses. He then approached the teller with a handwritten note demanding the money, after which he fled on foot.
Galipp has been and will remain in custody where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The McAllen Police Department and FBI conducted the investigation. Assistant U.S. Attorney Laura Garcia prosecuted the case.
13 convicted in $189 million Medicare kickback schemeRead the Press Release
HOUSTON – With the plea of a 46-year-old Houston man, 13 people now stand convicted in the healthcare scam involving Continuum Healthcare and its various health centers in the Houston area, announced U.S. Attorney Ryan K. Patrick.
Steven Houseworth admitted to conspiring to pay and receive kickbacks relating to the Medicare program today.
A total of 12 others have been convicted in relation to the scheme. A federal jury convicted Cheryl Waller, 73, of Houston, March 2, 2017, after a three-day trial on one count of conspiracy to pay and receive kickbacks and one count of receiving kickbacks. Those all convicted on the conspiracy count include James Bobino, 50, Ernestine Johnson, 60, Jackie Harris, 56, and Vermon Lacy III, 35, all of Houston; David Edson, 71, Palm Harbor, Florida; Jeffery Parsons, 60, Crockett; Aretha Johnson, 67, Wimberley; Inger Michelle Pace, 57, Missouri City; Ronald Turner, 59, Fresno; Deborah Davis, 56, Atlanta, Georgia; and Mary Browning, 71, Beasley. Edson and Parsons were also convicted of two counts of money laundering. Johnson also pleaded guilty to one count of money laundering, while Pace and Turner each further admitted to paying and receiving kickbacks.
Houseworth, Edson and Parsons were part of the executive team for Continuum Healthcare LLC, which owned Westbury Community Hospital in Houston as well as community mental health centers in the Houston area known by their locations as Hornwood, Baytown and Missouri City.
During his plea today, Houseworth admitted to participating in a kickback scheme to pay co-defendants to bring patients to Continuum. He admitted to causing Medicare to pay $1.5 million based on false and fraudulent claims.
Each location operated a partial hospitalization program (PHP). The PHP was supposed to be a treatment program for individuals with mental illness, intended to closely resemble a highly structured, short-term hospital inpatient program. However, while it was a distinct and organized intensive treatment program, it offered less than 24-hour daily care.
In 2010, Continuum opened Westbury Community Hospital with Hornwood and Baytown becoming outpatient centers, continuing to operate their existing PHPs under the Westbury name. Westbury also opened a PHP.
Houseworth, Edson and Parsons were responsible for the day-to-day operation of Continuum/Westbury and were involved in the implementation of the various kickback programs. Numerous people were referred for treatment in exchange for payment. However, the vast majority did not qualify for PHP services, because they were not experiencing an acute psychotic episode or were actually suffering from mental retardation, dementia or Alzheimer’s.
Aretha Johnson, Pace, Bobino, Waller, Browning and Davis each owned personal care homes in Houston, while Ernestine Johnson, Harris, Lacy and Turner were marketers for Continuum. Each admitted receiving payment to refer the patients, receiving amounts ranging from $130,000 t0 $2.6 million each.
In total, Continuum billed Medicare approximately $189 million in total for fraudulent PHP services and Medicaid paid approximately $66 million on those clams.
U.S. District Judge Gray Miller accepted the plea and has set sentencing for Jan. 23, 2020, at which time Houseworth faces up to five years in prison and a possible $250,000 maximum fine. Housworth was permitted to remain on bond pending that hearing.
The FBI, Department of Health and Human Services - Office of the Inspector General, Texas Attorney General's Medicaid Fraud Control Unit and IRS - Criminal Investigation participated in the joint investigation. Assistant U.S. Attorneys Tina Ansari and Special Assistant U.S. Attorney Justin Blan are prosecuting the case.
Texas meth ring handed massive sentencesRead the Press Release
McALLEN, Texas – Several Fort Worth area meth runners and their recruiter have been sentenced for their roles in a half-year meth importing conspiracy, announced U.S. Attorney Ryan K. Patrick. The case involved the seizure of seven meth loads with a combined weight of more than 150 kilograms.
Aren Reyes, 23, Teresa Gonzales, 27, Francisca Baez, 53, and Yesenia Garcia, 27, all of Fort Worth; and Ofelia Hernandez Vasquez, 26, Saginaw, pleaded guilty in late 2017.
Today, U.S. District Judge Micaela Alvarez handed the main recruiter - Reyes - a 240-month sentence to be immediately followed by three years of supervised release. Also sentenced today were drug mules Gonzales and Garcia, who received respective sentences of 58 and 60 months in federal prison. Vasquez was sentenced to a term of 40 months, while Baez was ordered to serve a 75-month term of imprisonment. Both were drug smugglers in the organization.
In handing down the sentences, the court noted this was not the only load of drugs Gonzalez, Garcia and Vasquez had smuggled and could have changed their minds at any time and not participated in the long drive from Fort Worth. The court also mentioned that even if Baez was unable to stop her son - Reyes - from narcotics trafficking, she could have avoided joining her son in his criminal activities. Prior to assessing the 20-year sentence upon Reyes, Judge Alvarez considered the number of individuals he recruited into the drug trafficking ring and how many he affected with such a serious and destructive drug as meth.
Reyes was the main recruiter of drug mules for this drug trafficking organization and would frequently accompany them to the Rio Grande Valley to coordinate the importation of the drugs into the U.S. She would also travel up to Houston and occasionally, to the state of Georgia. He would escort the mules to make sure they got the drugs successfully past ports of entry and checkpoints.
On April 30, 2017, Vasquez and her brother, Manuel Martinez, 40, Saginaw, Texas, were arrested at the Anzalduas port of entry with approximately 30 kilos of meth in their vehicle. The drugs were stashed in a load of milk and juice containers to try to avoid suspicion. Martinez was sentenced previously to 120 months in for his role in the crime.
The next months, Garcia and Gonzales were arrested at the Progreso port of entry. They attempted to smuggle 11 kilograms of meth into the country in their vehicle - hidden in bags of candy.
Reyes also used his boyfriend, Brandon Morrison, and his mother, Baez, in the scheme. On Aug. 6, 2017, Morrison and Baez pushed a cart loaded with drinks into the Brownsville Port of Entry from Mexico. Upon Investigation, authorities soon discovered 15 kilograms of meth hidden within the coconut water bottles in Morrison’s cart. Morrison previously received a 122-month sentence.
All will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations and Customs and Border Protection conducted the investigation. Assistant U.S. Attorney David A. Lindenmuth is prosecuting the cases.
Sex offender sent to prison for immigration and SORNA violationsRead the Press Release
CORPUS CHRISTI, Texas - A 57-year-old convicted felon and Guatemalan national has been sentenced to federal prison for violating the Sex Offender Registration and Notification Act (SORNA) and unlawfully returning to the United States after removal proceedings, announced U.S. Attorney Ryan K. Patrick.
Today, U.S. District Judge Nelva Gonzales Ramos ordered Jose Paxtor-Chiroy to serve 30 months each for the SORNA and immigration convictions, respectively. The sentences will be served concurrently. At the hearing, the court heard evidence regarding Paxtor-Chiroy’s previous convictions for aggravated sexual assault of a 5-year-old victim and molesting another child victim. After serving those sentences, he was ordered to register as a sex offender for life and ordered removed from the county. The court also noted he had been previously removed in 1992. Not a U.S. citizen, he will again be expected to face removal proceedings.
Law enforcement discovered Paxtor-Chiroy Feb. 27, 2018, walking through a ranch near Sarita attempting to avoid detection. He admitted he had traveled across the Rio Grande River near Hidalgo before being discovered.
Under SORNA, convicted sex offenders must provide registration updates annually or quarterly, depending on the reportable conviction.
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.
Customs and Border Protection conducted the investigation. Assistant U.S. Attorney Reid Manning is prosecuting the case.
Local man indicted for ramming military baseRead the Press Release
CORPUS CHRISTI, Texas – The 47-year-old man who allegedly rammed the Naval Air Station (NAS) has been formally charged with destruction of government property and possession of a stolen firearm, announced U.S. Attorney Ryan K. Patrick.
A federal grand jury has returned the two-count indictment against Brian Dale Robinson, Beeville, today.
A criminal complaint was filed Oct. 7, after Robinson allegedly stole a truck and hit the denial barricade located at the North gate entrance of the NAS in Corpus Christi. The charges allege he was at a gas station in Beeville when he spotted a Dodge Ram 3500 pickup truck with the engine running. Robinson then allegedly entered the vehicle without permission and departed the area.
He approached the NAS and attempted to gain unauthorized access to the base, according to the charges. After he hit the barricade, the vehicle allegedly become inoperable. The charges allege Robinson exited the vehicle and left on foot with a handgun he had found inside and hid next to a dumpster.
Robinson allegedly had suicidal thoughts. However, he opted to drop the weapon so no one else would be hurt.
Following Robinson’s arrest, law enforcement located an HS Produkt, model XDM-9, 9mm pistol loaded with a full magazine.
If convicted of either of the charges, Robinson faces up to 10 years in federal prison and a possible $250,000 maximum fine.
The Naval Criminal Investigative Service and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney Robert D. Thorpe Jr. is prosecuting the case.
An indictment or information is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.AG Barr recognizes SDTX attorneys for work on hate crime caseRead the Press Release
HOUSTON – Attorney General William P. Barr recognized two Southern District of Texas (SDTX) employees for their distinguished public service at the 67th Annual Attorney General’s Awards Ceremony today.
This annual ceremony, held in Washington D.C., recognizes employees and other individuals who have demonstrated exceptional achievements, leadership and service to the Department of Justice and the American people.
Assistant U.S. Attorneys Sharad Khandelwal and Kate Suh were recognized along with Department of Justice Trial Attorney Saeed Mody for the successful prosecution of Marq Vincent Perez.
On Jan. 28, 2017, Perez burned down a mosque in Victoria.
An investigation revealed Perez had broken into the mosque a week earlier, tried to blow up a car using a homemade bomb, recruited others to “scope out” other mosques and threatened to burn the mosque down if it was rebuilt
The trial commenced for a week and involved testimony from more than 25 witnesses. The federal jury in Victoria returned guilty verdicts July 16, 2018, on all counts as charged. They found Perez responsible for a hate crime in the burning of the mosque, use of fire to commit a felony and for possessing an unregistered destructive device for an incident that occurred Jan. 15, 2017.
Observing that this case struck at the heart of what it means to be an American because it concerned a core right of religious freedom, the district court sentenced Perez to more than 24 years in prison.
“Our greatest strength in our fight for justice is our people – the thousands of men and women who have dedicated their careers, often at great personal sacrifice, to working for justice in America,” said Barr. “As we reflect on the contributions of each of the 357 individuals we honor today, we should hold them up as examples of excellence that continue to inspire our own commitment, and also as reminders of the professionalism and the qualities exhibited throughout the Department.”
This year’s program honored individuals across the department and federal, state, local and tribal partners for their self-less efforts, protecting national security and civil rights, addressing rising violent crime in our communities, going after gangs and those trafficking in dangerous narcotics and human beings. The awards also honor the work of civil and environmental litigation, which enforces the rule of law and upholds our Constitution. They also recognize employees whose ideas and efforts save taxpayer dollars and help our government operate more effectively and efficiently, among other contributions to public safety and good governance.
Non-citizen imprisoned on child pornography chargesRead the Press Release
HOUSTON – A 54-year-old man who remained in the United States after his Visa had expired has been ordered to prison for receipt and possession of child pornography, announced U.S. Attorney Ryan K. Patrick. Alberto Bernal Garcia resided in Houston and pleaded guilty April 16.
Today, Chief U.S. District Judge Lee H. Rosenthal sentenced Garcia 120 months for the receipt and possession convictions, respectively. The sentences will run concurrently. The court also considered statements detailing the impact to victims of child pornography. In handing down the sentence, Judge Rosenthal recognized receipt and possession of child pornography as a form of child abuse and a sickness or disorder. Garcia was further ordered to pay $76,000 in restitution to known victims and will serve five 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. He will also be ordered to register as a sex offender. Not a U.S. citizen, he is expected to face deportation proceedings following the sentence.
On or about May 20, 2018, law enforcement initiated an investigation into child pornography sharing which eventually led them to Garcia’s work address. Authorities executed a search warrant and seized a laptop and external hard drive which Garcia used. A forensic analysis resulted in the discovery of approximately 794 videos and 4,837 images of child pornography including pre-pubescent children, some as young as 3, and bestiality. Garcia collected his child pornography on his personal computer and an external hard drive.
Garcia came to the United States on a Visa in 1997 from Mexico. He did an array of work until he started helping individuals with viruses on their computers. At the time of his arrest, Garcia owned a computer repair shop within a convenience store.
Garcia has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations—Internet Crimes Against Children Task Force conducted this investigation.
Assistant U.S. Attorney Zahra Jivani Fenelon 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.
Laredoan sentenced for transporting people under mesquite woodRead the Press Release
LAREDO, Texas – A 24-year-old Laredo man has been ordered to federal prison for his role in transporting 17 undocumented aliens inside a hidden compartment, announced U.S. Attorney Ryan K. Patrick.
Andrew Barron pleaded guilty June 28.
Today, U.S. District Judge Marina Garcia Marmolejo handed him a 48-month sentence to be immediately followed by three years of supervised release. At the hearing, the court heard additional evidence that described the reckless disregard Barron demonstrated in transporting the aliens in such a manner.
On April 19, Barron approached the Interstate Highway 35 checkpoint driving Chevy truck towing an open-air trailer with a load of mesquite wood. Authorities referred him to secondary inspection, at which time they searched the trailer and found a hidden compartment under the mesquite wood.
After they unloaded it, they discovered 17 undocumented aliens, including three women and one juvenile male. All were citizens of Mexico.
Barron will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations and Border Patrol conducted the investigation. Assistant U.S. Attorney Anthony J. Evans prosecuted the case.
Woman imprisoned after attempt to smuggle meth with son in carRead the Press Release
LAREDO, Texas – A 26-year old Mexican native from Monterrey, Nuevo Leon, Mexico, has been ordered to federal prison following her conviction for conspiring with intent to distribute more than 40 kilograms of meth, announced U.S. Attorney Ryan K. Patrick. Claudia Janeth Ozuna-Celaya pleaded guilty July 3.
Today, U.S. District Judge Marina Garcia Marmolejo ordered Ozuna-Celaya to serve 87 months of imprisonment. Not a U.S. citizen, she is expected to face removal proceedings following the sentence. During the hearing, the court heard evidence regarding how the meth was hidden inside her car’s tires which required the use of buzz saws and welding torches to extract the bundles. In handing down the sentence, the court noted Ozuna-Celaya brought poison into the United States and made matters worse by including her child in wrongdoing. Judge Marmolejo admonished her in that there was no excuse or justification for her minor son to be with her when she committed this crime.
On March 15, Ozuna-Celaya drove a white Audi with Nuevo Leon license plates into the inspection area of the Border Patrol (BP) checkpoint near Interstate Highway 35 north of Laredo. At the time, her 4-year-old son was present in the vehicle.
During the immigration inspection, a service K-9 alerted to the possibility of concealed narcotics, and authorities immediately referred her to secondary inspection. There, they scanned the vehicle and discovered several abnormalities in the vehicle’s tires. Authorities subsequently searched the tires where they found multiple bundles totaling approximately 49.5 kilograms of meth with a purity of 99%. It is valued at approximately $871,000.
Upon questioning, she claimed to be the owner of the Audi and travelled regularly to San Antonio to go shopping with her cousin. A further investigation confirmed that cousin was not aware she was coming to visit her.
She 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 assistance from BP. Assistant U.S. Attorney Francisco J. Rodriguez is prosecuting the case.
SDTX groups among those awarded school violence grantsRead the Press Release
HOUSTON – Four Southern District of Texas (SDTX) school districts and a state agency area among those receiving Department of Justice (DOJ) grants to bolster school security and support first responders. DOJ announced the awards today, totaling more than $85.3 million, designed to educate and train students and faculty as well as support first responders who arrive on the scene of a school shooting or other violent incident.
“Creating a safe learning environment for our children is necessary,” said U.S. Attorney Ryan K. Patrick. “These grants will help local school districts and first responders train and create systems and programs that make our schools safer and better prepared for serious events.”
“These federal resources will help to prevent school violence and give our students the support they need to learn, grow and thrive,” said Attorney General William P. Barr. “By training faculty, students and first responders, and by improving school security measures, we can make schools and their communities safer.”
Among those in the SDTX receiving various grants include the McAllen, Humble, Pasadena and Mission Consolidated Independent School Districts (ISD), Humble ISD Police Department and Texas Department of Public Safety.
President Trump signed the STOP School Violence Act into law in March 2018, authorizing grants designed to improve threat assessments, train students and faculty to provide tips and leads, and prepare law enforcement officers and emergency professionals to respond to school shootings and other violent incidents.
The Office of Justice Program’s (OJP) Bureau of Justice Assistance and DOJ’s Office of Community Oriented Policing Services manage the programs and administer the grants, which include funds to:
- Develop school threat assessment teams and pursue technological solutions to improve reporting of suspicious activity in and around schools;
- Implement or improve school safety measures, including coordination with law enforcement, as well as the use of metal detectors, locks, lighting and other deterrent measures;
- Train law enforcement to help deter student violence against others and themselves;
- Improve notification to first responders through implementation of technology that expedites emergency notifications;
- Develop and operate anonymous reporting systems to encourage safe reporting of potential school threats;
- Train school officials to intervene when mentally ill individuals threaten school safety; and
- Provide training and technical assistance to schools and other awardees in helping implement these programs.
For more details about these individual award programs, as well as listings of individual 2019 awardees, visit https://go.usa.gov/xVJuV.
About the OJP:
‘Principal Deputy Assistant Attorney General Katharine T. Sullivan directs the OJP which provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal justice system. More information about OJP and its components can be found at www.ojp.gov.
About the Office of Community Oriented Policing Services (COPS):
The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1994, COPS has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and tribal law enforcement agencies to fund the hiring and redeployment of approximately 130,000 officers and provide a variety of knowledge resource products including publications, training and technical assistance. For additional information about the COPS Office, please visit www.cops.usdoj.gov.
Former LEO charged with civil rights violationsRead the Press Release
McALLEN, Texas – A former local police officer has been taken into custody for allegedly sexually assaulting two men while in custody, announced U.S. Attorney Ryan K. Patrick.
Matthew Lee Sepulveda, 24, Edinburg, was a former law enforcement officer with the Progreso Police Department, serving from April 17 to July 2 of this year.
The criminal complaint filed under seal yesterday was unsealed today upon his arrest. He is expected to make his initial appearance before U.S. Magistrate Judge Scott Hacker Monday.
The charges allege Sepulveda violated the civil rights of two individuals while acting under his authority as a uniformed police officer. Specifically, he allegedly performed oral sex on two men while they were in his custody.
If convicted, Sepulveda faces up to life in federal prison.
The FBI conducted the investigation with the assistance of the Hidalgo County Sheriff’s Office. Assistant U.S. Attorney Sarina S. DiPiazza 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.Federal jury convicts Houston man of trafficking girls for sexRead the Press Release
HOUSTON – A Houston jury has just returned guilty verdicts against a 44-year-old Houston man on five separate counts of sex trafficking involving adults and minors, announced U.S. Attorney Ryan K. Patrick. The jury deliberated for less than three hours before convicting David Mearis following three days of trial.
The jury heard evidence that spanned from approximately 2007 – 2016. Four victims testified about how they each met Mearis while still teenagers and how he won them over with gifts and kindness before using threats, sexual abuse and physical force to compel them into prostitution.
The jury heard Mearis knew what he was doing and that he lived off the backs of these young women and girls. The government described how Mearis exerted constant control over the female victims.
One girl began a relationship with Mearis, then 32, when she was 17 after
she had run away from her Oakland, California, home. Another victim was only 15 when she met Mearis, then 34. Both of these girls considered Mearis their boyfriend in the earlier stages of their relationships but were eventually forced to engage in commercial sex in north Houston. One testified that they had to engage in these acts daily and at all times of the day.
Another victim, 14, encountered Mearis, 41, and eventually ran away to live with him after they met on MocoSpace. She testified he had sexually assaulted her twice while she was with him in 2016.
Testimony revealed Mearis had put at least two of the girls on a peanut butter diet in order to fatten them up for the purpose of working as his prostitute. Evidence also showed text messages between Mearis and several victims demonstrating his constant control over their activities, including during the sex dates themselves. He controlled where they went, what they wore, what they ate and with whom they engaged in commercial sex. The jury saw commercial sex advertisements Mearis created for two of the victims and heard evidence about numerous times Mearis had accessed Backpage, a site formerly used for the purpose of advertising people for sexual activity. He also had bonded one of the victims out of jail at least twice after she was arrested for engaging commercial sex.
Some victims testified Mearis perpetrated acts of violence upon them, from slapping them across the face to being bound and gagged. They reported multiple instances in which they feared physical retaliation if they did not comply with demands, did not do as instructed or perform sexual acts as required. One victim described violence she experienced at the hands of Mearis following her release from jail.
At one point, when the girls were not making enough money, Mearis made one of them participate in a bank robbery. When it did not go exactly as he had planned, he berated her, calling her stupid, among other things.
That victim also described how she had virtually no relationships with anyone outside Mearis’ circle. He had taken her ID, would not let her drive or even use the phone. She was brought to tears multiple times on the stand. In one instance, she described that when her grandfather passed away, Mearis would not let her go unless he went with her. In trying to find the right word to describe the experience, she testified she felt “kidnapped” at the time and called him in court a “threat to young women.” “I felt like I had met the devil,” she said.
When she had eventually made it back to family in California after seeking help from Houston authorities, Mearis contacted her and threatened to call the police about her actions and the bank robbery if she did not return.
Another victim described how Mearis had hog-tied her and that he made her find other women for him. The jury heard Mearis had put a sock in her mouth, a gun to her head and threatened to kill her.
Evidence and testimony further established Mearis caused Supplemental Security Income benefits, intended for one of the victims, be directed to him. That victim had been diagnosed with mental retardation at an early age. Mearis himself described her as having the “mental capacity of a child” and could not do the simplest of tasks without constant supervision and instruction.
The defense implied the victims only implicated Mearis to avoid prosecution for their actions. The defense attempted to portray Mearis as simply a loving boyfriend who provided protection while the girls voluntarily engaged in commercial sex. However, testimony revealed the victims had to turn over the monies they earned for sexual acts directly to Mearis.
The jury did not believe the defense claims and found him guilty as charged.
U.S. District Judge Kenneth Hoyt presided over the trial and set sentencing for Jan. 13, 2020. At that time, Mearis faces a minimum of 15 years and up to life in federal prison and a possible $250,000 maximum fine.
He has been and will remain in custody pending that hearing.
The Houston Police Department, Texas Attorney General’s Office and FBI conducted the investigation with the assistance of the Harris County District Attorney’s Office as part of the Human Trafficking Rescue Alliance (HTRA).
Established in 2004, the United States Attorney’s office in Houston formed the HTRA to combine resources with federal, state and local enforcement agencies and prosecutors, as well as non-governmental service organizations to target human traffickers while providing necessary services to those that the traffickers victimized. Since its inception, HTRA has been recognized as a national model in identifying and assisting victims of human trafficking and prosecuting those engaged in trafficking offenses.
Assistant U.S. Attorneys Sherri Zack and Sebastian Edwards are prosecuting the case.
Houston man charged in Laredo for transporting nearly 100 undocumented aliensRead the Press Release
LAREDO, Texas – A Laredo grand jury has returned a nine-count indictment against a 50-year-old Houston man for a firearms charge in addition to conspiracy and transporting undocumented aliens, announced U.S. Attorney Ryan K. Patrick.
Bernard Jerome Leffyear is set to appear in Laredo federal court before U.S. Magistrate Judge Sam Sheldon at 1 p.m. today. Originally charged by criminal complaint, a grand jury returned the f0rmal indictment Oct. 8.
The charges allege that on Sept. 21, authorities were working their assigned duties at the Border Patrol (BP) checkpoint on Interstate Highway 35, north of Laredo. Leffyear allegedly approached the primary inspection lane, driving a tractor-trailer.
Agents inspected the vehicle, at which time they detected anomalies resembling human bodies inside his trailer, according to the charges.
Court records indicate he was transporting a total of 93 undocumented aliens.
In addition to discovering the undocumented aliens inside his trailer, authorities also found a black Smith & Wesson pistol. Having a prior felony conviction, he is prohibited by federal of possessing any type of firearm or ammunition.
If convicted of any of the charges, he faces up to 10 years in federal prison and a $250,000 maximum fine.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of Border Patrol. Assistant U.S. Attorney Francisco Rodriguez 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 employee admits guilt in $63K bank embezzlement schemeRead the Press Release
HOUSTON – A 33-year-old Brenham resident and ex-employee of Wells Fargo bank has admitted to embezzlement, announced U.S. Attorney Ryan K. Patrick.
Natasha Hudgeons pleaded guilty today.
From December 2014 through March 2019, she embezzled $63,500 while employed as a teller. Hudgeons admitted she took the money in $500 to $1,000 increments. She concealed the theft by putting falsified entries into the bank’s books and records and “selling” back and forth between the cashbox and coin machine cash lines. Both were considered “single control” cash lines, meaning tellers could conduct transactions on that account line without a second person.
U.S. District Judge Alfred Bennett accepted the plea and set sentencing for Jan. 9, 2020. At that time, Hudgeons faces up to 30 years in federal prison and a possible $1 million maximum fine.
She was permitted to remain on bond pending that hearing.
The FBI conducted the investigation. Assistant U.S. Attorney Belinda Beek is prosecuting the case.
Authorities seek human smuggler who illegally transported Chinese and other nationalsRead the Press Release
VICTORIA, Texas – A 48-year-old Mexican national who resided in McAllen and Houston is now a fugitive from justice, announced U.S. Attorney Ryan K. Patrick.
Humberto Ramirez-Santos was set to appear in Victoria federal court Oct. 2 to receive his sentence for a conspiracy to transport illegal aliens. He did not show. Today, a federal grand jury indicted him on another charge of failure to appear and a warrant remains outstanding for his arrest. Anyone with information about his whereabouts is asked to contact the U.S. Marshals Service at 361-220-1800.
Ramirez-Santos pleaded guilty July 8 to his involvement in a conspiracy to transport illegal aliens between October 2011 to July 2017. The alien smuggling organization facilitated the smuggling of illegal aliens from multiple countries including individuals from China, Russia, India, Brazil, Honduras, El Salvador, Guatemala and Mexico. Ages of those smuggled into the country ranged from toddlers to the elderly but were mostly comprised of young adults.
At the time of his plea, the court heard that smuggling trips were taken every week and the total number of aliens transported are incalculable.
The organization used various methods to facilitate the smuggling. Co-conspirators drove cars and trucks to locations south of Border Patrol (BP) checkpoints. There, they were guided through South Texas ranches to avoid detection. They also used Penske trucks and tractor trailers to smuggle illegal aliens through various checkpoints.
A particular tactic was to select a tractor trailer parked at a South Texas truck stop with a suitable temperature. They would then remove the seal and load the illegal aliens. Members of the organization would follow the vehicle to the next stop somewhere north of the checkpoint to later retrieve them. The drivers would be unaware of their human cargo and were potentially exposed to criminal liability. The aliens were then be transported in closed Penske trucks to Houston.
Ramirez-Santos provided aliens to be smuggled through his contacts in Mexico. He also trained the young members of the organization in how to do counter-surveillance and instructed younger family members in how to move aliens.
Immigration and Customs Enforcement’s Homeland Security Investigations, Border Patrol and Houston Police Department conducted the investigation. Assistant U.S. Attorney Patti Hubert Booth 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.Valley man sent to prison for lying on federal firearms formRead the Press Release
BROWNSVILLE, Texas – A 40-year-old Harlingen resident has been ordered to federal prison following his conviction of lying on a firearm application at a local Wal-Mart, announced U.S. Attorney Ryan K. Patrick along with Special Agent in Charge Fred Milanowski of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). A Brownsville jury deliberated for 30 minutes before convicting Juan Sauceda following a one-day trial June 18, 2019.
Today, U.S. District Judge Rolando Olvera handed Sauceda an 18-month sentence to be immediately followed by two years of supervised release. At the hearing, the defense argued for probation as there was “no harm, no foul.” The court denied that request and imposed the federal prison term.
On Sept. 6, 2018, Sauceda attempted to purchase a 12-gauge pump shotgun at a Wal-Mart in Harlingen. As a part of the purchase, he was required to fill out ATF Form 4473 in order to complete a background check. He signed the form, attesting that he never had a felony conviction. However, the investigation revealed he had a conviction for two counts of assault and battery with a deadly weapon. Sauceda had stabbed two individuals in 2013 in a dispute in Custer County, Oklahoma.
The defense attempted to convince the jury Sauceda was too uneducated to understand the form when he made the false statement as to his criminal history. The jury was not persuaded and found him guilty as charged.
Sauceda was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
ATF conducted the investigation. Assistant U.S. Attorney Justin Schorr Dinsdale and Israel Cano III prosecuted the case.
Second area man sent to prison for child pornography chargesRead the Press Release
BROWNSVILLE, Texas – A 68-year-old Brownsville man has been ordered to prison following his convictions of distributing and possessing child pornography, announced U.S. Attorney Ryan Patrick. Arnoldo Villagomez pleaded guilty Jan. 4, 2018.
Today, U.S. District Judge Rolando Olvera Jr. sentenced Villagomez to 120 months for the distribution and possession convictions, respectively. The sentences will run concurrently for a total 10-year term of imprisonment. Villagomez was further ordered to pay $263,952.83 in restitution to the known victims and will serve 10 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. He will also be ordered to register as a sex offender.
In July 2016, authorities learned an as-yet-unidentified individual in Brownsville was involved in distributing child pornography via the internet. The investigation led them to an address in Brownsville where Villagomez resided.
Law enforcement executed a search warrant Nov. 9, 2016, and seized a computer and other digital devices belonging to Villagomez. Forensic analysis later revealed more than 5,000 images and 145 videos of child pornography.
Immigration and Customs Enforcement’s Homeland Security Investigations - Rio Grande Valley Child Exploitation Task Force conducted the investigation.
Assistant U.S. Attorney Ana C. Cano 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.
McAllen woman charged in Medicare kickback conspiracyRead the Press Release
McALLEN, Texas – A 44-year-old McAllen woman has been charged with conspiring to pay illegal kickbacks to physicians and marketers in exchange for the referral of Medicare and Medicaid beneficiaries, announced U.S. Attorney Ryan K. Patrick.
A federal grand jury returned the indictment, under seal, against Claudia Haro Oct. 9, which was unsealed as authorities arrested her today. She is expected to make her initial appearance tomorrow morning before U.S. Magistrate Judge J. Scott Hacker.
The indictment charges Haro with engaging in a conspiracy from 2011 through 2016. Haro and her co-conspirators allegedly paid kickbacks to physicians and various other individuals in exchange for beneficiary referral and certification and for services and supplies billed to Medicare and Medicaid. According to the indictment, Haro delivered cash payments in return for the referral of beneficiaries to a home health agency and other providers with whom Haro was associated.
Haro is also charged with one count of making false statements to federal agents.
If convicted of any of the charges, she faces up to five years in prison.
The FBI, Department of Health and Human Services‐Office of Inspector General, Texas Attorney General’s Medicaid Fraud Control Unit and Texas Health and Human Services Commission conducted the investigation. Assistant U.S. Attorneys Andrew Swartz and Cynthia Villanueva are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Former Gulf Cartel comandante receives significant prison sentenceRead the Press Release
HOUSTON - A 34-year-old Mexican man has been ordered to federal prison sentence following his conviction of conspiracy to import large amounts of cocaine and marijuana, announced U.S. Attorney Ryan K. Patrick.
Luis Ivan Nino-Duenez, El Control, Tamaulipas, Mexico, pleaded guilty June 3, 2014.
Today, Senior U.S. District Judge Hilda G. Tagle sentenced Nino-Duenes to a total of 20 years in federal prison.
During the hearing, the court heard evidence to support possible increases in the calculated sentencing guideline range. Nino-Duenes utilized automatic weapons, grenades, homemade cannons and body armor to provided security during the purchase, transportation and distribution of narcotics. He also commanded, directed and engaged in violent confrontations with other criminal syndicates to maintain control of the plazas in Mexico. He further received enhancements for importation of meth into the United States, maintaining premises for the purpose of manufacturing or distributing a controlled substance and because he committed the offense as part of a pattern of criminal conduct. Finally, the court also found Nino-Duenes was a leader/organizer of an extensive criminal enterprise involving five or more participants.
Nino-Duenes served as a comandante for Jose Luiz Zuniga-Hernandez aka Wicho or XW who served as a gulf cartel plaza boss in El Control for a large period of time between 2008 through 2011.
On Nov. 6, 2010, Zuniga-Hernandez assumed control of the Matamoros Plaza upon the death of Antonio Ezequiel Cardenas-Guillen. On March 28, 2011, Rafael Cardenas-Vela came to Matamoros to take over the plaza management duties and Zuniga-Hernandez returned to El Control.
Cartel Del Golfo (CDG) transnational criminal organization plaza bosses are appointed to specific regions to help coordinate the importation and distribution of multi-ton shipments of cocaine, marijuana and other illicit narcotics within Mexico and into the United States. They are the lead representatives for the CDG in a particular region or town, responsible for maintaining control of the region and ensuring the safe passage of narcotics. The plaza boss also extracts a "piso," or payment, from others who want to transport narcotics for importation into the United States or operate businesses in that region.
Additional evidence presented today indicated Zuniga-Hernandez and the CDG smuggled more than one ton of cocaine through the Matamoros/El Control plaza areas and more than 3000 kilograms of marijuana into the United States per month. The CDG used planes and clandestine air strips to fly the cocaine into Mexico for later importation and distribution within the United States.
Zuniga-Hernandez had under his command approximately 120 lookouts and 60 estacas. An estaca is a vehicle occupied by three or four armed individuals. Thus, 60 estacas would be anywhere from 180 to 240 armed individuals patrolling the plaza. Nino-Dunez was the commander of Zuniga-Hernandez’s estacas.
On Oct. 27, 2011, Zuniga-Hernandez and Nino-Duenes along with Hernandez and Rincon-Rincon fled into the United States after a gun battle in Mexico involving a power struggle between the CDG plazas.
All were found hiding near the Rio Grande River. Upon their arrest, agents found a gold, diamond and ruby encrusted gun, more than $39,000 and several cell phones. Evidence on those phones showed discussions with "Apa" about the gun battle and what to do in response. "Apa" was identified as Jorge Eduardo Costilla-Sanchez, the head of the CDG.
Zuniga-Hernandez, Hernandez and Rincon-Rincon were previously sentenced to 50 years, 35 years and life imprisonment, respectively.
Nino-Duenes 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, Drug Enforcement Administration and Cameron County Sheriff’s Office conducted the Organized Crime Drug Enforcement Task Force investigation. Assistant U.S. Attorneys Angel Castro and Jody Young are prosecuting the case.
Brownsville area attorney fined and sent to prisonRead the Press Release
HOUSTON – A 70-year-old Brownsville attorney has been ordered to federal prison following his conviction of failing to file a financial reporting form as required when operating a trade or business, announced U.S. Attorney Ryan K. Patrick. Guillermo Vega Jr. pleaded guilty May 23, 2018.
Today, U.S. District Judge Andrew S. Hanen ordered Vega to serve a total of 13 months in prison immediately followed by three years of supervised release. The court also imposed a $100,000 fine and restitution payable to the IRS for unpaid taxes Vega earned as part of his legal practice. At the hearing, the court heard additional evidence regarding Vega’s attempt to obstruct justice by tampering with a witness. In handing down the sentence, the court found Vega abused the public trust because of his special skill as an attorney. Judge Hanen also noted other government and legal forms he filed in the course of his representation of criminal defendants.
At the time of the plea, the court heard that on March 21, 2011, Vega received $25,000 in cash related to a single sale while operating as a trade or business, namely the Law Office of Guillermo Vega Jr.
The money was intended for the representation of Heriberto Bazan on federal charges of attempting to transport ammunition into Mexico. Vega did not file the appropriate FinCEN Form in relation to the transaction. A FinCEN Form 8300 is a reporting requirement when a trade or business receives cash in excess of $10,000.
As part of the plea agreement, Vega agreed that he will make full restitution on the tax loss, totaling $126,253.
Vega was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
IRS-Criminal Investigation and Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorneys Jody Young and Karen Betancourt are prosecuting the case.