Southern District of Texas
Press releases recorded for this federal judicial district.
Local Rapper Found Guilty of Sex Trafficking of a MinorRead the Press Release
HOUSTON – A federal jury has convicted a 27-year-old Houston resident and member of The Sauce Factory for conspiracy and sex trafficking, announced U.S. Attorney Ryan K. Patrick. The jury deliberated for less than eight hours before convicting Jaimian Sims after five days of trial.
At trial, the jury heard that Sims trafficked both adult and minor females.
In one instance, Sims had directed a co-defendant - Tabbetha Mangis, 22, of La Grange - to find another co-defendant - Gary Shawn Haynes Jr. - 23, of Houston - to find Haynes a girl for prostitution. The victim, only 17 years of age, was picked up from her residence and transported to a 5,000 square foot residence in Northwest Houston, known as “The Mansion.”
After a brief stay there, the jury heard that the minor was taken to the Express Inn where she was given an identification card in order to rent a room. Sims had instructed an adult victim to provide the card to the minor. He had also told that adult to take photos of the minor female victim and post ads for her which was used to solicit customers who would pay for sex.
The jury heard testimony from the adult victim who described her fear of Sims because he always carried a gun and he had assaulted some of the other women who engaged in commercial sex on his behalf.
Testimony also revealed the minor victim wanted to be “arrested” because she was afraid the perpetrators would think she was speaking to law enforcement on her own. This dovetailed with the government’s expert testimony on victimology and the pimp/prostitution subculture amongst those involved in that world as “the game.” The expert described for the jury the meaning of several terms associated with and used by those within this subculture to include victims and defendants.
The jury also saw and heard three rap videos featuring Sims which contained many of the terms people use in the game.
The defense attempted to convince the jury that the women were not victims and engaged in the sex acts willingly nor did he use force, fraud 0r coercion to make them do so. They were not convinced and found him guilty of conspiracy to commit sex trafficking of a minor and sex trafficking of a minor.
Mangis and Haynes previously pleaded guilty and are awaiting sentencing.
U.S. District Judge David Hittner presided over the trial and set sentencing for Aug. 14, 2019. At that time, Sims faces a minimum of 10 years and up to life in federal prison and a possible $250,000 maximum fine.
He will remain in custody pending that hearing.
The Harris County Constable’s Office Precinct 4 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 Kimberly Leo are prosecuting the case.
LPR Heads to Prison for Hiding Illegal Aliens in Furniture in Attempt to Circumvent CheckpointRead the Press Release
CORPUS CHRISTI, Texas – A 23-year-old legal permanent resident of Katy has been ordered to federal prison following his conviction of transporting illegal aliens, announced U.S. Attorney Ryan K. Patrick. Yabar Ayan Portes-Arevalo pleaded guilty Feb. 18, 2019.
Today, Senior U.S. District Judge John Rainey handed Portes-Arevalo a 21-month sentence. He could also lose his resident status in the United States. At the hearing, the court found he endangered the lives of the illegal aliens.
On Dec. 10, 2018, Portes-Arevalo approached the primary inspection lane of the Border Patrol (BP) checkpoint near Sarita. He was driving a Ford F-150 pickup with a couch and dresser loaded in the bed of the truck wrapped in plastic. During a routine inspection, Portes-Arevalo became visibly nervous, at which time BP conducted an x-ray examination of the vehicle which showed abnormalities inside the furniture.
BP agents removed the plastic and discovered three undocumented aliens hidden in the couch and three more inside the dresser. The dresser had been nailed shut.
Portes-Arevalo is in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
BP conducted the investigation. Assistant U.S. Attorney Cody Barnes is prosecuting the case.
Federal Judge Grants Upward Variance and Gives Gang Member with Multiple Priors Significant Prison SentenceRead the Press Release
HOUSTON – A 38-year old Houston resident and documented 59 Bounty Hunters criminal street gang member has been ordered to federal prison for multiple convictions, announced U.S. Attorney Ryan K. Patrick.
Michael Wayne Ben pleaded guilty March 11, 2019, admitting he was in possession of several firearms and rounds of ammunition. With 18 prior convictions, he is not permitted to possess such per federal law.
Today, U.S. District Judge Kenneth Hoyt took into consideration Ben’s multiple convictions, granted an upward variance to the U.S. Sentencing Guidelines and ordered him to serve 115 months in federal prison. The sentence will be immediately followed by three years of supervised release.
At the hearing, the court heard that Ben was convicted of felonies twice in 1997, again in 1998, 2000, 2004, 2005, 2008, twice in 2012 and again in 2017, among other offenses.
The convictions included multiple felonies, such as possession of a controlled substance, burglary of a building, unlawful carrying of a weapon and unlawful possession of a firearm by a felon, unauthorized use of a vehicle, manufacturing or delivery of a controlled substance and assault of a family member.
The government contended a variance in the sentencing range was necessary to ensure the safety of the community.
Judge Hoyt heard that Ben once attempted to ingest 10.22 grams of crack cocaine so police would not seize it. He also stole a truck and rammed it into a grocery store to burglarize it.
More so, the court heard about one of Ben’s prior cases in which he once strangled and beat up a women who had a newborn baby in her arms, solely because she had discovered another woman’s keys in Ben’s pockets. During the encounter, Ben had thrown the baby on the floor. In a separate incident, he kicked yet another woman in the stomach after she did not get an abortion as he had instructed.
On Oct. 22, 2018, authorities observed a 1993 Lincoln Sedan at the intersection of Deering and Woodfair in Houston, at which time they learned of an open traffic warrant for the operator of the vehicle – Ben. He stopped the car, but then fled on foot.
A law enforcement officer chased him through a nearby apartment complex and a parking lot. Ben has also jumped over the hood of a car and a small privacy fence as he continued into another apartment complex. He was ultimately taken into custody apprehended a few days later.
In his vehicle, authorities found a stolen Glock 19 9-millimeter semi-automatic pistol with a 30-round high-capacity magazine containing 20 rounds of ammunition. Also discovered was an Anderson Manufacturing AM-15 semi-automatic assault rife with a double drum high-capacity magazine which is capable of holding more than 100 rounds of ammunition. It had 16 rounds of .222 ammunition, one of which was a military grade tracer round.
Ben will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Houston Police Department and Bureau of Alcohol, Tobacco and Firearms conducted the investigation. Assistant U.S. Attorney Adam Laurence Goldman prosecuted the case.
Another Heads to Prison for Operation “Tres Equis”Read the Press Release
LAREDO, Texas – A 34-year-old Laredoan is now the 23rd defendant to be headed to federal prison following his conviction of money laundering, announced U.S. Attorney Ryan K. Patrick.
A federal jury convicted Daniel Laurel June 15, 2018, for having successfully laundered drug proceeds for the Romero Drug Trafficking Organization (DTO) by operating a funnel account and recruiting other Laredoans to do the same.
Late Friday, May 17, 2019, U.S. District Judge Diana Saldana ordered him to prison for 151 months for money laundering conspiracy and money laundering concealment. As part of his sentence, Laurel also received a $285,500 money judgment or forfeiture of funds involved in his money laundering
The DTO used Laurel’s bank account and those of his recruits to funnel drug proceeds from various geographic locations, such as Florida, Pennsylvania, North Carolina, New York and Georgia for immediate withdrawal in Laredo. Once the proceeds were withdrawn, they were provided to other Laredo co-conspirators and often taken into Mexico to leaders of the organization. convictions.
Laurel is one of several persons identified through a long term Organized Crime Drug Enforcement Task Force (OCDETF) investigation dubbed Tres Equis. These co-conspirators engaged in a scheme to distribute cocaine, methamphetamine, heroin and fentanyl through the use the U.S. Postal Service or other means such as Federal Express. They also used various U.S. bank accounts to transfer drug proceeds from distribution hub cities to cities along the Mexican border, including Laredo, and to places outside the United States, including Mexico and Ecuador.
The 22 others sentenced include Antonio Romero Jr., 32, of Orlando, Florida, who occupied a leadership position in the DTO and received a 292-month sentence. The other prison sentences ranges from 12-210 months based on their roles in the organization. Two others received probation. As part of their respective sentences, most people received a hefty money judgment or forfeiture of funds involved or traceable to drug trafficking which ranged from $1000 to $1.08 million. Additionally, non-U.S. citizen defendants are expected to face deportation proceedings and possible cancellation or denial of any previously granted visa or legal residency status.
The Drug Enforcement Administration and IRS – Criminal Investigation conducted the OCDETF investigation. Also providing assistance was the U.S. Marshals Service, Laredo Police Department, sheriff’s offices in Webb and Zapata Counties, Webb County District Attorney’s Office, Border Patrol and the Texas Department of Public Safety.
Assistant U.S. Attorney Graciela R. Lindberg prosecuted the case.
U.S. Government Files Suit Against Webster Aviation CompanyRead the Press Release
HOUSTON – The U.S. Attorney’s Office for the Southern District of Texas has filed a civil penalty action against Michael D. King and his solely owned company, Ascent Aviation Solutions LLC, based in Webster, announced U.S. Attorney Ryan K. Patrick.
The suit seeks $154,000 in penalties against King and Ascent, alleging King has been operating Ascent as a direct air carrier without the necessary Federal Aviation Administration (FAA) certification. A direct air carrier is one who provides, or offers to provide, air transportation and who maintains control over the operational functions performed in providing the transportation. In order to operate as a direct air carrier, one must hold an FAA-issued certificate after demonstrating one meets the requisite requirements.
The complaint alleges Ascent uses what is known in the industry as a “dry lease” to circumvent the FAA requirements for direct air carriers. Under such lease, the lessee simply leases the equipment and is responsible for all aspects of operational control of the plane. The complaint alleges Ascent entered into a dry lease with a passenger who took at least 14 trips with Ascent.
The passenger did not have operational control of the plane, according to the complaint. He allegedly only paid Ascent to fly him from one city to another. The charges allege Ascent retained operational control of the aircraft – meaning Ascent, not the passenger, handled all flight logistics including hiring the pilots.
The complaint alleges pilots had not passed the competency checks or instrument proficiency checks required under the FAA regulations governing direct air carriers.
“Air safety and integrity in our system is important. When operators in any industry evade regulations by naming or classifying an act as something else, we will hold them accountable,” said Patrick. AAs a licensed pilot myself, I know firsthand the training and education required to operate in the air transport industry. This action ensures passengers are protected when they seek private charter travel and companies compete in a fair manner.”
The FAA conducted the investigation. Assistant U.S. Attorney Michelle Zingaro is handling the case.
Heroin Conspiracy Sends Doctor to Federal PrisonRead the Press Release
CORPUS CHRISTI, Texas – A 37-year-old U.S. citizen who was living in Mexico has been ordered to federal prison following his conviction of conspiring to possess with the intent to distribute more than 10 kilograms of heroin, announced U.S. Attorney Ryan K. Patrick.
Jose Roberto Moya pleaded guilty Oct. 26, 2018.
Today, U.S. District Judge Nelva Gonzales Ramos determined Moya had a leadership role in the drug conspiracy and ordered him to serve 144 months in federal prison followed by five years of supervised release.
Moya is a medical doctor who operated a clinic in Reynosa, Mexico.
Law enforcement stopped him June 6, 2018, for a traffic violation just south of Alice as he was driving with two female passengers in the vehicle. As the females exited the car, deputies noticed unusual bulges beneath their clothing. A subsequent pat-down revealed nine bundles of heroin with a total weight of more than 22 pounds strapped to their bodies. Both of the females later plead guilty to conspiring to possess with intent to distribute heroin.
Moya will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigation with the assistance of the Jim Wells County Sheriff’s Office. Assistant U.S. Attorney Robert D. Thorpe Jr. is prosecuting the case.
Mexican Nationals Sentenced for Importing MethRead the Press Release
LAREDO, Texas – Two men who resided in Nuevo Laredo, Tamaulipas, Mexico, have been ordered to federal prison following their convictions of conspiracy to import methamphetamine, announced U.S. Attorney Ryan K. Patrick. Jesus Francisco Perez-Lumbreras, 36, and Gerardo Cervantes-Valenzuela, 27, pleaded guilty Jan. 29, 2019.
Today, U.S. District Judge Diana Saldaña imposed a 120-month-term upon Cervantes-Valenzuela while Perez-Lumbreras was ordered to serve 57 months in federal prison. Not U.S. citizens, both are expected to face deportation proceedings following their sentences.
At the hearing, the court noted Cervantes-Valenzuela was to blame for Perez-Lumbreras’ involvement in the offense.
On Nov. 26, 2018, Perez-Lumbreras and Cervantes-Valenzuela attempted to enter the United States from Mexico at the World Trade International Bridge in Laredo driving different vehicles approximately 40 minutes apart.
Perez-Lumbreras was referred to secondary inspection, at which time he became panicked and called Cervantes Valenzuela to try to remove drugs from his vehicle. Customs and Border Protection (CBP) officers stopped him as he exited his vehicle, at which time he claimed he was just attempting to remove some water from his friend’s vehicle.
Officers ultimately discovered large speaker boxes in both vehicles which contained a total of approximately 8.22 kilograms of high-purity methamphetamine (ice).
During questioning, both men admitted to having knowingly agreed with other persons in Mexico to import methamphetamine into the United States. Perez-Lumbreras claimed Cervantes-Valenzuela had promised him $40,000 Mexican pesos to smuggle the drugs from Mexico into the United States.
Cervantes-Valenzuela similarly admitted to having recruited Perez-Lumbreras.
Both men have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
CBP and Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Francisco J. Rodriguez is prosecuting the case.
Former Houston Businessmen Sentenced for Fraudulently Taking over $5 MillionRead the Press Release
HOUSTON – Two men have been ordered to federal prison following their convictions for conspiracy to commit wire fraud involving a fraudulent invoice scheme, announced U.S. Attorney Ryan K. Patrick.
Larry Allen Page, 67, of Katy, and John A. Elsner, 53, formerly of Houston and now of Washington State, pleaded guilty Dec. 11, 2018, and Jan. 7, 2019, respectively.
Today, U.S. District Judge Nancy F. Atlas ordered Page to serve 15 months in federal prison and pay $5,467,532.54 in restitution to his victims. Two days prior, Elsner was sentenced to 51 months in prison and $5,579,532.54 in restitution. Both men will also be required to serve one and three years of supervised release, respectively, following their release from prison.
At Elsner’s hearing, the court heard that the scheme spanned four years and the amount in false invoices grew each year of the scheme. Judge Atlas noted that the length of and repetitive nature of the criminal conduct was a factor in the decision of how long to send each to prison.
Elsner and Page defrauded a business lender of more than $4 million and two investors of $1.5 million. Elsner ran the day-to-day operations of Logistical Solutions International Inc. (LSI) as general manager and president. Page was the vice president of Finance. Elsner was also a majority shareholder in LSI.
LSI provided corporations with logistical support and training services that facilitated the stay of international visitors on assignment to train, attend meetings and work outside their home country. LSI provided these services to the oil and gas industry in the Middle East. LSI financed their operations primarily through the factoring of the LSI’s invoices to their customers.
Elsner, on behalf of LSI, entered into a factoring agreement with a lending entity to purchase LSI’s accounts receivable at a discount. During the scheme, Page and Elsner knowingly sold falsified LSI invoices to the lender under the false pretense that LSI had completed the work described in the invoice and the invoice was a final invoice ready to be submitted to LSI’s customer. At the time the scheme to defraud collapsed, LSI’s debt to the factoring company for unpaid false invoices was $4,037,532.54.
Both Page and Elsner were allowed 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 the Secret Service conducted the investigation. in Houston. Assistant U.S. Attorney Melissa Annis is prosecuting the case.
Nearly 100 Charged in Massive Marriage Fraud SchemeRead the Press Release
HOUSTON – A total of 50 people are now in custody following the return of a 206-count indictment alleging varying roles in a large-scale marriage fraud scheme, announced U.S. Attorney Ryan K. Patrick along with Special Agent in Charge Mark Dawson of Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) and District Director Tony Bryson of U.S. Citizenship and Immigration Services (USCIS). The federal grand jury returned the massive indictment April 30, 2019, charging 96 individuals. To date, law enforcement has taken 50 into custody. Of those, nine are set to appear for a detention hearing before U.S. Magistrate Judge Nancy Johnson at 10:00 a.m. today. The indictment remains sealed as to those charged but not as yet in custody. “These arrests mark the culmination of a comprehensive year-long multi-agency investigation into one of the largest alleged marriage fraud conspiracies ever documented in the Houston area,” said Dawson. “By working together with our partners from various federal law enforcement agencies we have sent a resounding message that we are united in our effort to disrupt and dismantle criminal organizations that seek to circumvent U.S. law by fraudulent means.” The investigation targeted a suspected criminal organization allegedly operating a large-scale marriage fraud scheme. The scam involved the creation of sham marriages in order to illegally obtain admission and immigrant status for aliens in the United States, according to the indictment. The charges allege Ashley Yen Nguyen AKA Duyen, 53, of Houston, headed the Southwest Houston-based organization and had associates operating throughout Texas and Vietnam. “Marriage fraud is a serious crime. This indictment reveals how successful our working relationships are with our law enforcement and intelligence partners when it comes to investigating marriage fraud,” said Bryson. “USCIS remains steadfast in our commitment to ensuring national security, public safety and the integrity of the immigration system.” A sham marriage is a marriage that is entered into for the primary purpose of circumventing immigration laws. The indictment alleges the marriages involved in this conspiracy were shams because the spouses did not live together and did not intend to do so, contrary to documents and statements they submitted to USCIS. The spouses only met briefly, usually immediately before they obtained their marriage license, or not at all, according to the charges. The spouses allegedly entered into the marriage pursuant to a financial arrangement for the primary purpose of circumventing U.S. immigration laws. According to the charges, each beneficiary spouse entered in an agreement with Duyen in which they would pay approximately $50,000 - $70,000 to obtain full lawful permanent resident status. The agreements were allegedly prorated in that they would pay an additional amount for each immigration benefit they received, such as admission into the United States, conditional permanent resident status and full lawful permanent resident status. In addition, Duyen and others recruited other United States citizens to act as petitioners in the sham marriages, according to the indictment, who received a portion of the proceeds received from the beneficiary spouses. Several individuals that were recruited as petitioners soon after became recruiters themselves, according to the allegations. Others were also allegedly in charge of receiving the proceeds from the beneficiary spouses and disbursing the payments to the petitioners. The indictment also charges several individuals to act as guides for U.S. citizen petitioners who allegedly travelled to Vietnam under the guise they were going to meet his/her fiancé. In truth, according to the indictment, they were beneficiary spouses paying the criminal organization in order to circumvent United States law. The criminal organization also allegedly prepared fake wedding albums which were provided to the petitioner and beneficiary spouse that included photographs to make it appear as if they had a wedding ceremony above and beyond a simply courthouse marriage. The indictment further alleges the criminal organization provided false tax, utility and employment information to help ensure USCIS would approve the false immigration forms. Also indicted is attorney Trang Le Nguyen aka Nguyen Le Thien Trang, 45, of Pearland, for obstructing and impeding the due administration of justice and tampering with a witness, victim or informant. According to the indictment, Nguyen allegedly prepared paperwork associated with at least one of the fraudulent marriages and told a witness who provided information to law enforcement to go into hiding, not engage in any air travel that may alert federal law enforcement to her presence and not provide any further information to law enforcement. The charges include 47 counts of marriage fraud, 50 counts of mail fraud, 51 counts of immigration fraud, 51 counts of false statements under oath in matter relating to registry of aliens and one count each of conspiracy to engage in marriage fraud, conspiracy to commit mail fraud, conspiracy to commit immigration fraud, conspiracy to make false statements under oath in matter relating to registry of aliens, unlawful procurement of naturalization, obstructing and impeding the due administration of justice and tampering with a witness, victim or informant. Conspiracy to commit mail fraud, mail fraud and tampering with a witness, victim, or informant all carry possible 20-year federal prison sentences. If convicted of conspiracy to commit marriage fraud or marriage fraud, those charged face up to five years in prison. The remaining charges all have maximum possible 10-year-terms of federal imprisonment. HSI and USCIS conducted the investigation. Assistant U.S. Attorneys Adam Laurence Goldman, Michael Day and Kate Suh are prosecuting the case. An indictment is an accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.Local Woman Charged with Filing False Tax ReturnRead the Press Release
HOUSTON – A local woman has been arrested following the return of a federal indictment alleging she filed a false tax return, announced U.S. Attorney Ryan K. Patrick and Acting Special Agent in Charge Sarah Kull of IRS – Criminal Investigation (CI).
A federal grand jury returned the indictment against Vanessa Ben April 25, 2019. She was taken into custody today and expected to make her initial appearance today before U.S. Magistrate Judge Christina A. Bryan.
The indictment alleges that from 2012 through 2015, Ben willfully filed U.S. Individual Income Tax returns she did not believe to be true and correct. She allegedly filed these returns knowing she was not entitled to claim several items on her returns.
If convicted, she faces up to three years in federal prison and a possible $100,000 maximum fine.
IRS-CI conducted the investigation. Assistant U.S. Attorney Rodolfo Ramirez 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.Convicted Felon Sentenced for Shooting at Federal AgentsRead the Press Release
VICTORIA, Texas – A 30-year-old Cuero resident has been ordered to federal prison following his conviction of assault on a federal agent and related firearms charges, announced U.S. Attorney Ryan K. Patrick. Joseph Brent Benoit pleaded guilty Jan. 7, 2019.
Today, Senior U.S. District Judge John D. Rainey sentenced Benoit to 60 months for the assault on a federal agent and being a felon in possession of a firearm. He was also ordered to serve a 120-month term of imprisonment for discharging a firearm in relation to a crime of violence which must be served consecutively to the other sentence imposed.
On supervised release when he committed this offense, Judge Rainey further ordered Benoit also to serve 30 months on the revocation on that term, 10 of which was to be served consecutively to the new sentence.
The total 190-month prison term will be immediately followed by three years of supervised release.
On Aug. 8, 2017, deputies with the U.S. Marshals Service (USMS) were attempting to execute a felony arrest warrant for Benoit. When officers observed Benoit driving a black Chevrolet truck in Dewitt County, they requested the assistance of local law enforcement in stopping the vehicle. At that time, Benoit briefly stopped but then fled in the vehicle. Authorities pursued him until coming to a stop at his residence.
Benoit exited the truck and ran to the residence while carrying an assault rifle. Shortly thereafter, agents heard a single gunshot and immediately retreated to a position of safety and cover outside the residence. Law enforcement verbally attempted to get Benoit to exit the location, but were unsuccessful.
After a multi-hour stand-off, law enforcement officers were able to gain entry into the residence and located Benoit hiding in a crawl space under the floor that was accessed by a hidden door in the floor of the residence. At the time Benoit was arrested and taken into custody, USMS deputies observed the assault rifle laying on the ground next to him - an AR-15 style, .223 caliber semi-automatic rifle. During a search of Benoit, officers discovered 37 rounds of .223 caliber ammunition in his pants pockets. Benoit had previously been convicted of a felony and is prohibited by federal law from possessing firearms and ammunition.
After authorities secured the scene, they discovered a round hole in the glass on the front door that was consistent in size with a .223 caliber bullet. Based on the damage surrounding the hole, it appeared the bullet was fired from inside the residence. Federal agents were able to locate a fired .223 caliber casing inside the residence and the fired .223 caliber bullet outside in a wooden railing along the approach to the front door.
Benoit has been and will remain in federal custody pending transfer to a U.S. Bureau of Prisons facility.
USMS, the Bureau of Alcohol, Tobacco, Firearms and Explosives, FBI, Cuero Police Department and Texas Rangers conducted the investigation with the assistance of the Corpus Christi Police Department Bomb Squad, Dewitt County Sheriff’s Office, Victoria Police Department, Texas Department of Public Safety, and the Victoria County Sheriff’s Office. Assistant U.S. Attorneys Patti Booth and Lance Watt are prosecuting the case.
Former Houston Banker Indicted for Bank FraudRead the Press Release
HOUSTON – A 39-year-old Houston woman is set to appear in federal court following the return of a four-count indictment alleging bank fraud, announced U.S. Attorney Ryan K. Patrick.
Lori Nan Dean is set to make her initial appearance before U.S. Magistrate Judge Christina Bryan at 10:00 a.m. today.
The indictment, returned April 30, 2019, alleges that while employed at the International Bank of Commerce (IBC), she defrauded them of $144,300. She allegedly made unauthorized withdrawals of money through the submission of fraudulent debit general ledger tickets.
According to the indictment, Dean made false entries in the books and records of IBC to conceal her fraud.
The alleged bank fraud scheme lasted from approximately Jan. 2, 2016 through Aug. 2, 2017.
Each count of bank fraud carries a maximum penalty of 30 years imprisonment and a fine up to $1 million.
The FBI conducted the investigation. Assistant U.S. Attorney John Braddock is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless and until convicted through due process of law.Mexican Citizen Arrested on Child Pornography ChargesRead the Press Release
McALLEN, Texas – A 27-year-old man residing in Donna has been taken into custody on charges of receipt of child pornography, announced U.S. Attorney Ryan K. Patrick.
Law enforcement arrested Angel DeJesus Torres at his residence last night. He is expected to make his initial appearance before U.S. Magistrate Judge Scott Hacker at 10:30 a.m. today.
The complaint alleges Torres downloaded, received and possessed hundreds of images and videos of child pornography on electronic devices.
Authorities conducted on investigation to identify persons using peer-to-peer software on the internet to traffic in child pornography and ultimately located a computer, allegedly linked to Torres. They conducted a search at his residence and seized two cell phones, according to the charges.
The complaint alleges law enforcement discovered multiple image and video files of child pornography on at least one of those devices.
The allegations indicate he had been engaged in similar behavior for many years.
If convicted, Torres faces up to five years in federal prison and a possible fine.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation as part of the Rio Grande Valley Child Exploitation Investigations Task Force.
Assistant U.S. Attorneys Steven Belt and Andrew Henning are prosecuting the case, which was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Jury Convicts LPR of Conspiring to Transport Illegal AlienRead the Press Release
CORPUS CHRISTI, Texas – A 28-year-old legal permanent resident alien who resided in Houston has been convicted of conspiring to and transporting an illegal alien within the United States, announced U.S. Attorney Ryan K. Patrick.
A federal jury sitting in Corpus Christi convicted Arturo Javier Garcia-Perez following two days of trial and less than an hour of deliberation.
A Robstown police officer had pulled over a black 2007 Chevy pickup truck in the early morning hours of Jan. 27, 2019, on Highway 77 near Terrie Shamsie Boulevard for a faulty license plate light and obstructed view.
Garcia-Perez was the driver. While being questioned, Garcia-Perez began to be evasive.
There were three others in the vehicle who were also questioned. The stories conflicted. Border Patrol was called to assist and ultimately determined that one of the occupants was a citizen of Honduras, illegally present in the United States.
The jury heard Garcia-Perez admitted to agents that he had dropped off his co-defendants and the illegal alien south of the Falfurrias border patrol checkpoint and picked them up north of the checkpoint.
Garcia-Perez attempted to convince the jury that he didn’t know the status of the alien. They did not believe his claims and found him guilty as charged.
U.S. District Judge Nelva Gonzales Ramos presided over the trial and set sentencing for July 24, 2019. At that time, Garcia-Perez faces up to 10 years for the conspiracy and five years for transportation of an illegal alien. He could also be imposed up to $250,000 in fines and could lose his status as an LPR.
Previously released on bond, Garcia-Perez was taken into custody following the verdict today where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Border Patrol and the Robstown Police Department conducted the joint investigation. Assistant U.S. Attorneys Jason Supplee and Michael Hess are prosecuting the case.
Ambulance Owner Sent to Prison for Health Care FraudRead the Press Release
HOUSTON – A 46-year-old Houston man has been ordered to federal prison following his conviction of conspiracy to commit health care fraud, announced U.S. Attorney Ryan K. Patrick.
Keeble Lovall pleaded guilty July 31, 2018, after less than two days of trial and hearing from 10 witnesses.
Today, U.S. District Judge Miller handed Lovall a 63-month sentence to be immediately followed by three years of supervised release. In handing down the sentence, the court noted the sentence was appropriate to deter future health care fraud.
Lovall was the owner of Your Health EMS from 2009 through 2012. Beginning in September 2011 until May 2012, Lovall knowingly billed Medicare and Medicaid falsely for non-eligible transports. Some of the fraudulent billing involved Lovall submitting claims to Medicare and Medicaid for individual ambulance transports, when in fact, multiple patients were being transported via one ambulance.
Other fraudulent billings involved Your Health submitting claims for transporting Medicare patients via an ambulance to Partial Hospitalization Programs (PHPs) at various facilities, which is an unauthorized transport per Medicare. Additionally, Lovall billed Medicare through Your Health for ambulance transportation services when there was no medical necessity for the transport.
As a result of Lovall’s actions, Your Health falsely billed Medicare for approximately $2,835,930 in ambulance transports, which were never provided or which were not medically necessary. Lovall caused Medicare to directly deposit approximately $1,063,913.58 into Your Health’s bank account for ambulance transports, which were never provided or which were not medically necessary.
Lovall was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The Medicaid Fraud Control Unit of the Texas Attorney General's Office, IRS - Criminal Investigation, FBI, Department of Health and Human Services - Office of Inspector General conducted the joint investigation. Assistant U.S. Attorneys Rodolfo Ramirez and Zahra Jivani Fenelon prosecuted the case.
Third Brownsville Meth Smuggler Ordered to PrisonRead the Press Release
BROWNSVILLE, Texas – A 38-year-old Brownsville man has been sentenced for possession with intent to distribute 15.12 kilograms of methamphetamine, announced U.S. Attorney Ryan K. Patrick. Vicente Manuel Murillo, of Brownsville, pleaded guilty July 6, 2018.
Today, U.S. District Judge Rolando Olvera sentenced Murillo to a 60-month term of imprisonment to be immediately followed by two years of supervised release. In handing down the sentence, the court admonished Murillo, telling him that should he ever be foolish enough to commit another offense in the future, his sentence would be a lot higher.
At the time of his plea, Murillo admitted he knowingly possessed the methamphetamine with intent to distribute it to another person within the United States.
The case originated Jan. 20, 2017, when co-conspirator Maria Guadalupe Villanueva, 56, of Brownsville, attempted to enter the United States through the B&M Bridge Port of Entry in Brownsville driving a 2005 Jeep Grand Cherokee. She was the sole occupant and registered owner of the vehicle. During inspection, authorities discovered 15.12 kilograms (33.26 pounds) of methamphetamine hidden within Rockaleta lollipop candy bags in the vehicle.
Upon arrival, Villanueva claimed her cousin - Bibiana Paz, 48, of Brownsville - had given her the candy in Matamoros, Mexico, to bring into the United States for a birthday party. However, the primary inspector had immediately noticed it was not a lollipop, but felt liked crushed rocks and sent her to secondary inspection. There, she again gave the same statement.
Villanueva was going to take the bags to Paz’s apartment. Villanueva indicated Paz placed the candy into the vehicle and had stayed in Matamoros in order to continue shopping. Law enforcement, however, discovered Paz had actually crossed into the United States through the same port approximately three minutes after Villanueva’s attempted entry. Villanueva also indicated, that because of Paz’s history, she suspected there were narcotics hidden in the candy bags and asked Paz why she did not want to cross the candy herself. She also indicated she asked Paz “You wouldn’t do that to me?” She indicated Paz shook the bags and told her there were no narcotics in the bags.
On Feb. 8, 2017, law enforcement arrested Paz, at which time she admitted she had asked Villanueva to bring the candy into the United States after Murillo had given her the merchandise in Matamoros. She indicated the candy was going to be delivered to Murillo in Brownsville.
She said that on Jan. 20, 2017, she followed Villanueva into the United States and noticed Villanueva had been detained. She admitted she delivered a separate batch of candy to Murillo at a local parking lot after she informed him that Villanueva was detained at the bridge.
Murillo was later arrested and stated he was supposed to receive the narcotics Villanueva was bringing into the United States. He claimed the narcotics supplier in Mexico told him to take custody of the narcotics from Paz and admitted he was going to deliver them to another person within the United States.
Judge Olvera previously sentenced Villanueva and Paz for their roles in the offense to 31 and 60 months, respectively.
Murillo 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 and Customs and Border Protection conducted the investigation. Assistant U.S. Attorney Angel Castro prosecuted the case.
Man Convicted of Filing False Tax ReturnRead the Press Release
HOUSTON – A local man has entered a guilty plea to filing false joint 2015 tax return, admitting he falsely claimed a tax refund of more than $15,000, announced U.S. Attorney Ryan K. Patrick along with Acting Special Agent in Charge Sarah Kull of IRS-Criminal Investigation (CI).
According to the plea agreement filed in the record of the case, Christopher Hatton falsely inflated the amount of federal income tax withholdings and unreimbursed employee expenses claimed on his joint 2015 income tax return. The inflations were more than $38,000 each in withholdings and unreimbursed employee expenses.
Hatton’s tax return claimed a false income tax refund of in excess of $15,000 when he actually owed more than $18,000 in income taxes for the year.
The plea agreement further states when audited, Hatton provided an altered form W-2 and altered bank statements to support the false amounts claimed on his 2015 tax return. Hatton further admitted he also filed tax returns for 2012, 2013, 2014 and 2016, claiming false items.
The plea agreement further indicates the total tax loss Hatton caused the IRS was in excess of $126,000.
U.S. District Judge Nancy Atlas accepted the guilty plea and has sentencing for July 17, 2019. At that time, Hatton faces up to three years in federal prison and a possible $250,000 maximum fine.
He was permitted to remain on bond pending that hearing.
IRS-CI conducted the investigation. Assistant U.S. Attorney Charles J. Escher is prosecuted the case.
Undocumented Alien Pleads Guilty to Assaulting Federal OfficerRead the Press Release
LAREDO, Texas – A 39-year-old Mexican national has just admitted he assaulted a Border Patrol (BP) agent with a flashlight, announced U.S. Attorney Ryan K. Patrick.
Melecio Lopez-Hernandez was arrested Feb. 7, 2019, after a BP agent encountered him walking through the brush south of Freer. He began to struggle as the agent attempted to detain him, during which time Lopez-Hernandez dislodged a flashlight that was clipped to the agent’s outer vest.
After verbally threatening him, Lopez-Hernandez then struck the agent in the head with the flashlight. The agent sustained injuries from the impact.
Sentencing has been set for Sept. 17, 2019, before U.S. District Judge Marina Garcia Marmolejo. At that time, Lopez-Hernandez faces up to 20 years in prison and a possible $250,000 fine.
He has been and will remain in custody pending that hearing
The FBI and Border Patrol conducted the investigation. Assistant U.S. Attorney Jennifer Day is prosecuting the case.
USAO Hosts Roundtable on Sexual Harassment in HousingRead the Press Release
HOUSTON - The U.S. Attorney’s Office (USAO) for the Southern District of Texas and the Department of Justice’s (DOJ) Civil Rights Division hosted a roundtable today for community organizations to discuss the problem of sexual harassment in housing, announced U.S. Attorney Ryan K. Patrick.
The event included personnel from legal aid offices, fair housing organizations, shelters and transitional housing providers, who often work with vulnerable populations and are most likely to become victims of such harassment.
The DOJ, through USAOs and the Civil Rights Division, enforces the Fair Housing Act, which prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. Sexual harassment is a form of sex discrimination the law prohibits.
“Sexual harassment in housing - which typically involves a landlord extorting sexual favors from vulnerable tenants - is an egregious violation of the Fair Housing Act,” said Patrick. “My office is dedicated to uncovering such violations where they exist and using every available tool to stop this unlawful and despicable behavior.”
The roundtable is part of DOJ’s Sexual Harassment in Housing Initiative. It seeks to identify barriers to reporting sexual harassment in housing, increase awareness of enforcement efforts - both among survivors and those to whom they report - and collaborate with federal, state and local partners to increase reporting and help survivors quickly and easily connect with federal resources.
The USAO is working closely with the Civil Rights Division to ensure people are aware of options to help victims experiencing sexual harassment or who experienced sexual harassment in housing in the past. Today’s roundtable was just such an example designed to increase awareness and build strong partnerships in the community and combat this problem together.
While most people are familiar with the problem of sexual harassment in the workplace, harassment also occurs in housing which the Fair Housing Act prohibits. DOJ brings cases each year involving egregious conduct, including allegations that defendants have exposed themselves sexually to current or prospective tenants, requested sexual favors in exchange for reduced rents or making necessary repairs, made unrelenting and unwanted sexual advances to tenants and evicted tenants who resisted their sexual overtures.
Unfortunately, many instances of sexual harassment in housing continue to go unreported. The investigations frequently uncover sexual harassment that has been ongoing for years or decades and identify numerous victims who never reported the conduct to federal authorities.
In October 2017, the Justice Department launched the initiative to combat sexual harassment in housing. In April 2018, the Department announced the nationwide rollout of the initiative, including three major components: a new joint Task Force with the Department of Housing and Urban Development to combat sexual harassment in housing, an outreach toolkit to leverage the Department’s nationwide network of U.S. Attorney’s Offices, and a public awareness campaign, including the launch of a national Public Service Announcement.
Since launching the initiative, the Justice Department has filed nine lawsuits alleging a pattern or practice of sexual harassment in housing. The Justice Department has filed or settled 14 sexual harassment cases since January 2017, and has recovered over $2.2 million for victims of sexual harassment in housing.
DOJ encourages anyone who has experienced sexual harassment in housing, or knows someone who has, to contact the Civil Rights Division by calling 844-380-6178 or emailing them.
Several Charged in Federal Drug Trafficking and Money Laundering ConspiraciesRead the Press Release
CORPUS CHRISTI, Texas – A total of six men are now in custody following the return of a 41-count indictment alleging a cocaine and marijuana trafficking conspiracy, conspiracy to commit money laundering and 39 substantive drug and money laundering violations, announced U.S. Attorney Ryan K. Patrick.
During an enforcement operation today, federal agents and local officers arrested Rodolfo Hernandez Ramos, 40, Luis Ortiz III, 39, Florentino Galvan, 77, Antonio Saenz, 52, Guadalupe Gonzalez, 39, and Ulises Francisco Cortinas, 44, all of the Brownsville and McAllen areas. Also charged is Emilio Garcia Uribe, 61.
Cortinas and Gonzalez made their initial appearances today before U.S. Magistrate Judge Ronald Morgan in Brownsville and Scott Hacker in McAllen, respectively. With the exception of Uribe, all are expected to make their appearances in Brownsville and McAllen, respectively, tomorrow. Uribe is considered a fugitive and a warrant remains outstanding for his arrest.
The indictment, returned March 13, 2019, and unsealed today, charges all seven with the drug trafficking conspiracy involving more than five kilograms of cocaine and more than 1,000 kilograms of marijuana between July 1, 2014, and March 13, 2019.
All are also charged with conspiring to conduct financial transactions with drug proceeds. They allegedly transported, transmitted and transferred U.S. currency which they knew represented the proceeds from drug trafficking from the United States to Mexico. The transactions and transportation were designed to conceal and disguise the nature, location, source, ownership and control of the drug proceeds, according to the charges.
If convicted of the drug conspiracy offense, they all face a minimum of 10 years and up to life in federal prison as well as a possible $10 million maximum fine. The money laundering conspiracy carries a potential 20 years and a fine of not more than $500,000, or twice the value of the property involved in the transaction or both.
Ramos also faces 28 additional substantive money laundering counts which carry the same 20-year-sentence. Also charged in some of these substantive money laundering counts along with Ramos are Ortiz, Cortinas and Saenz.
The indictment also includes 11 additional substantive possession with intent to distribute cocaine and/or marijuana counts against Ramos, Ortiz, Galvan and Uribe. If convicted on those charges, Ramos and Galvan face up to life imprisonment, while Ortiz and Uribe face up to 40 years in prison.
The Drug Enforcement Administration and IRS – Criminal Investigation conducted the Organized Crime Drug Enforcement Task Force investigation dubbed “Broken Blue Line.” Assistant U.S. Attorney Kenneth Cusick is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless and until convicted through due process of law.Registered Sex Offender Sentenced for Distribution of Child Pornography after Viewing Pornographic Images in PublicRead the Press Release
CORPUS CHRISTI - A 65-year-old Corpus Christi sex offender has received a lengthy federal prison sentence following his conviction for distribution of child pornography, announced U.S. Attorney Ryan K. Patrick. Manuel Diaz pleaded guilty Jan. 31, 2019.
Today, U.S. District Judge Neva Gonzales Ramos sentenced Diaz to 180 months in federal prison. The sentence will be immediately followed by 1o years of supervised release during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. Diaz will also be ordered to register as a sex offender.
Following the imposition of the lengthy term, the defense called it “essentially a death sentence.”
Diaz has been a sex offender since 1984, when he was convicted for sexually assaulting a child out of Harris County.
On July 3, 2017, several employees at a local drug store noticed Diaz as he scrolled through photos on a kiosk in the photo lab area - in plain view of employees and customers. People noticed what they believed to be images of child pornography among what they described as “a lot” which were stored on Diaz’ phone and hooked into the kiosk by a data cable. Employees contacted local law enforcement who placed Diaz under arrest. Diaz subsequently confessed to possessing the images.
In total, Diaz was in possession of more than 100 images of child pornography and 65 videos containing child pornography. A forensic evaluation of his phone led investigators to several messages on a popular social media app in which Diaz had sent the images to other users, including people Diaz believed were underage females.
Diaz 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 and Corpus Christi Police Department’s – Internet Crimes Against Children Task Force conducted the investigation.
Assistant U.S. Attorneys Brittany L. Jensen and Hugo R. Martinez prosecuted the case, which was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Operator of McAllen Area DME Company Sentenced for Health Care FraudRead the Press Release
McALLEN, Texas ‐ The owner of a durable medical equipment (DME) company has been ordered to federal prison for defrauding Medicaid of more than $3 million, announced U.S. Attorney Ryan K. Patrick. Anna Ramirez-Ambriz, 57, of McAllen, pleaded guilty March 31, 2017.
Today, U.S. District Judge Randy Crane handed Ramirez-Ambriz a 78-month sentence to be immediately followed by three years of supervised release. She was further ordered to pay more than $3 million in restitution to the Texas Medicaid Program.
Ramirez-Ambriz owned Compassionate Medical Supply located in Edinburg. From 2007 through 2013, Ramirez-Ambriz billed Texas Medicaid for higher quantities and more costly incontinence supplies than were actually delivered to more than 100 Texas Medicaid recipients. Compassionate employees were instructed to provide recipients with fewer and less expensive incontinence supplies than Ramirez-Ambriz billed to Texas Medicaid. As part of her plea, Ramirez-Ambriz admitted she submitted false and fraudulent claims to Texas Medicaid.
As a result of her scheme, Ramirz-Ambriz further admitted that Texas Medicaid suffered a loss of $3,143,149.41.
Ramirez-Ambriz was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The Texas Attorney General’s Medicaid Fraud Control Unit, FBI and the U.S. Department of Health and Human Services‐Office of Inspector General conducted the investigation. Assistant U.S. Attorneys Andrew Swartz and Michael Day are prosecuting the case.
Former Mortgage Broker Charged with Deed Fraud SchemeRead the Press Release
HOUSTON – A 58-year-old man is set to appear in Houston federal court on allegations contained in a 10-count indictment to include conspiracy to commit bank and wire fraud, wire fraud and violations of a federal money laundering statute, announced U.S. Attorney Ryan K. Patrick.
Clarence C. Roland III, of Tacoma, Washington, is accused of fraudulent acquisition of real property through the manipulation and filing of fraudulent deed documents in county records across the country.
He is set to make his initial appearance before U.S. Magistrate Judge Christina Bryan at 10:00 a.m. today.
The indictment, returned in December 2018, alleges Roland fabricated fraudulent documents to defraud mortgage holders by causing the property records to reflect their interests in the real property had been eliminated.
Roland and others fraudulently transferred the ownership of the real property in which the mortgage holder had an interest to shell companies Roland controlled, according to the charges. The fraudulent documents allegedly further materially misrepresented the shell companies he controlled had outstanding mortgage loans on the real properties allegedly held by another company Roland controlled. Upon the sale of the real property, Roland allegedly caused that fake loan to be paid off using seller’s proceeds.
The indictment further alleges the conspirators created and used various entities names in executing their scheme to defraud.
If convicted of conspiracy to commit bank fraud, Roland faces up to 30 years in federal prison and a possible $1 million maximum fine. A conviction for wire fraud carries a potential 20-year-maximum sentence and a $250,000 possible fine. He is also charged with six counts of money laundering, each carrying a maximum 10 years in prison and $250,000 in fines, upon conviction.
The Federal Housing Finance Agency - Office of Inspector General and the FBI conducted the investigation. Assistant U.S. Attorney Melissa Annis is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Houston Man Admits to Kidnapping and Killing Postal EmployeeRead the Press Release
HOUSTON – A 31-year-old resident of Houston has pleaded guilty to kidnapping in connection with the death of a U.S. Postal Service (USPS) Employee, announced U.S. Attorney Ryan Patrick.
Don Gaines entered a plea of guilty today to kidnapping and killing the 28-year-old woman.
“Protecting the employees of the USPS is a top priority for the U.S. Postal Inspection Service,” said Inspector in Charge Adrian Gonzalez. “When someone takes the life of one of our employees, we will stop at nothing to identify those responsible and bring them to justice. We extend our appreciation to all our local, state and federal partners that assisted in this investigation.”
That investigation identified Gaines, also a postal employee, as the person who abducted the victim as she left from the U.S. Postal Station - Houston distribution Center on Aline Bender Road, Sept. 11, 2017. The victim’s family reported her missing shortly thereafter. Gaines and the victim had previously been in a relationship and had two children together.
Gaines admitted he choked the victim in her car near his residence in Houston. After he strangled her, Gaines believed the she was dead and transported her to Louisiana. However, during the trip, the victim regained consciousness, after which Gaines drove her to a secluded area off the highway. At that time, he parked the car and walked the victim into the woods where he shot her in the head with a firearm. He abandoned her body and drove back to Houston in her car the same day.
Investigators identified location data on the victim’s car through a GPS device.
Evidence mirrored Gaines’ statements in that the victim’s car was located at his residence the same date he claimed to have choked her. It was also shown that the victim’s car traveled along Interstate 10 through Louisiana, then returned to Houston. A video further showed that Gaines purchased gas on the return drive to Houston after he disposed of the victim’s body.
Ultimately, the investigation led to the remote location in Louisiana where skeletal remains were discovered Oct. 12, 2017. Subsequent DNA analysis confirmed those remains were of the victim.
U.S. District Judge accepted the plea today and has set sentencing for Aug. 22, 2019. At that time, Gaines faces up to life in prison and a $250,000 fine. 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.
USPIS conducted the investigation with the assistance of the Houston Police Department, Harris County Sheriff’s Office, Jefferson Davis Parish (Louisiana) Sheriff’s Office, Louisiana State Police, Calcasieu Parish (Louisiana) Coroner’s Office, Forensic Anthropology and Computer Enhancement Services Laboratory at Louisiana State University and the Georgia Bureau of Investigation. Assistant U.S. Attorneys John Jocher and James McAlister are prosecuting the case.
Nebraska Man Sentenced in McAllen Bank RobberyRead the Press Release
McALLEN, Texas – A 38-year-old resident of Omaha, Nebraska, man has been ordered to federal prison for more than 18 years for his conviction of bank robbery, announced U.S. Attorney Ryan K. Patrick. Kenneth S. Jones pleaded guilty Feb. 4, 2019, admitting he entered the Greater State Bank in McAllen and announced “This is a robbery!”
Today, U.S. District Judge Micaela Alvarez found Jones to be a career offender based on this and his other two federal drug trafficking convictions. He received a sentence of 220 months in federal prison to be immediately followed by five years of supervised release.
“This is not a joke,” Jones said as he entered the bank. “Put the money on the counter. If you don’t do it, I’m going to shoot you!” Fearful for their lives, employees handed over approximately $10,000 in U.S. currency and several marked bills. Jones then fled the scene.
Authorities were able to track Jones back to his hotel and arrested him the same day. A subsequent search of the hotel recovered the money stolen from the bank.
Jones has been in custody since his arrest in 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. Attorneys Robert L. Guerra Jr. is prosecuting the case.
Undocumented Alien Indicted for Attacking Federal AgentsRead the Press Release
LAREDO, Texas – A federal grand jury has returned a three-indictment against a 23-year-old Mexican citizen for assault on three Border Patrol (BP) agents, announced U.S. Attorney Ryan K. Patrick.
Luis Gustavo Ramirez-Saucedo was originally charged by criminal complaint and ordered into custody pending further criminal proceedings. Today, a grand jury sitting in Laredo returned the indictment. He is expected to make an appearance before U.S. Magistrate Judge Sam Sheldon in the near future.
The facts in the complaint allege that on March 29, 2019. BP agents were working their assigned duties in Laredo. At approximately 9:30 p.m., they were alerted to a group of approximately 20 subjects entering the United States from Mexico by illegally crossing the Rio Grande River and activating electronic sensors, according to the charges.
According to the complaint, agents responded immediately and made contact with Ramirez-Saucedo within minutes. At that time, he allegedly violently resisted three BP agents’ efforts to apprehend him, allegedly striking them and ignoring multiple commands to halt before finally being detained.
The BP agents were treated for injuries at a medical facility.
Ramirez-Saucedo is charged with knowingly and unlawfully assaulting and resisting federal officers in their official duties. If convicted, he faces up to 20 years in federal prison.
BP and the FBI are conducting the investigation. Assistant U.S. Attorney Francisco J. 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.Undocumented Alien Charged with Firearms ViolationRead the Press Release
McALLEN, Texas – A 45-year-old illegal alien from Mexico has been indicted on charges he illegally possessed firearms, announced U.S. Attorney Ryan K. Patrick.
Luis Vasquez-Garcia, illegally residing in Alamo, was originally charged by criminal complaint March 29, 2019, and was later remanded to custody pending further criminal proceedings. Today, a federal grand jury returned the one-count indictment. He is expected to make an appearance before U.S. Magistrate Judge Peter E. Ormsby in the near future.
The indictment alleges Vasquez-Garcia shipped or transported in interstate or foreign commerce or possessed in affecting commerce one Smith and Wesson MOD-66-2 .357 caliber pistol and 69 rounds of ammunition.
According to the complaint, Vasquez-Garcia had an outstanding warrant for his arrest in Alamo for a violent crime. He was located in his vehicle outside a residence in Alamo, at which time officers observed Vasquez-Garcia with the firearm and ammunition with him. The firearm was loaded.
If convicted, Vasquez-Garcia faces up to 10 years in federal prison and a possible $250,000 fine.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Alamo Police Department. Assistant U.S. Attorneys Steven Belt and Andrew Henning 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.Local Resident Detained on Stalking ChargesRead the Press Release
HOUSTON – A 31-year-old citizen of Pakistan now residing in Houston has been ordered into custody for stalking, announced U.S. Attorney Ryan K. Patrick.
A federal grand jury indicted Afzal Arsalan Rehman April 10, 2019, and was taken into custody April 15. Today, U.S. Magistrate Judge Peter Bray found that no condition or combination of conditions would reasonably assure Rehman’s appearance in court and ordered him into custody pending further criminal proceedings.
At the hearing that began last Thursday and concluded today, the court heard evidence about Rehman’s alleged systematic torture of a victim between October 2015 and June 2018. Rehman allegedly created a Facebook account on multiple occasions which he used to send images and messages to the victim’s family, friends and colleagues. During the online harassment of the victim, Rehman used images he had created via screen capture of Skype sessions between himself and the victim during their intimate romantic relationship, according to the allegations.
He also discovered where the victim worked and allegedly called her place of business numerous times in an attempt to get someone to transfer his calls. While mostly unsuccessful, on one occasion, Rehman told someone he was outside the business and “something bad” was going to happen, according to the allegations heard at the hearing.
The court also heard that Rehman had originally entered the United States on a student visa which was revoked in August 2017. He had been enrolled in college locally and allegedly used the wifi on campus occasionally to create the Facebook accounts. According to the information presented in court, these accounts were in the victim’s name and, at first, appeared to be very normal. However, they allegedly portrayed pictures of the victim at her wedding, then later devolved into the embarrassing and harassing images Rehman captured.
If convicted, Rehman faces up to five years in federal prison and a possible $250,000 maximum fine.
The FBI conducted the investigation. Assistant U.S. Attorney Sherri Zack is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Local Man Convicted of Aiming Laser Pointer at an AircraftRead the Press Release
HOUSTON – A 20-year-old Houston man has entered a guilty plea to aiming a laser pointer at an aircraft, announced U.S. Attorney Ryan K. Patrick.
Bryan Aldana, 20, admitted that on June 23, 2018, he pointed a green laser light at an Airbus AS350 B2 helicopter while it was in the air.
On June 23, 2018, Texas Department of Public Safety (DPS) agents were flying a the helicopter on routine law enforcement patrol. At approximately 9:00 p.m., they were headed in the northwest direction along highway US-290 when agents observed a flash of green light coming from the left side of the aircraft. At the time, they were at approximately 1000 feet elevation and traveling at a speed of 70-80 knots.
The pilot reversed the aircraft back to the southeast direction and was illuminated again by the green laser, which was powerful enough to light up the entire cockpit. The light caused a glare in the pilot’s eyes and obstructed his vision, forcing him to turn his head and maneuver the Airbus away from it. The pilot also had to close and shield his eyes from the flashing green laser inside the cockpit.
The investigation led to the source of the light at a business near the intersection of Hollister and Pitner Roads in Houston. With the help of the Houston Police Department (HPD) and the store’s security cameras, Aldana was soon identified.
Video recordings show Aldana aiming a green laser up in the sky several times and a green laser pointer at the helicopter while sitting in a chair next to a silver sedan. He was also seen placing the green laser device through the opening of the silver sedan window on to the backseat.
Officers seized the laser and submitted it to a National Aeronautics and Space Administration scientist to be examined. The scientist concluded the laser pointer is a Class IIIB laser system and produced a “laser beam” which could result in serious and possibly permanent retinal damage.
U.S. District Judge Lynn N. Hughes accepted the plea and set sentencing for July 22, 2019. At that time, Aldana faces up to five years in prison and a possible $250,000 maximum fine. He was permitted to remain on bond pending that hearing.
The FBI, HPD and DPS conducted the investigation. Assistant U.S. Attorney Joe Porto is prosecuting the case.
Indian National Extradited to United States to Face Charges for Leadership Role in Multimillion Dollar India-Based Call Center Scam Targeting U.S. VictimsRead the Press Release
An Indian national has been extradited to the United States from Singapore to face charges related to his role as an operator of a call center network that targeted U.S victims. The massive India-based telephone impersonation fraud and money laundering conspiracy defrauded thousands of U.S. residents out of hundreds of millions of dollars.
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, Executive Associate Director Derek N. Benner of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Inspector General J. Russell George of the U.S. Treasury Inspector General for Tax Administration (TIGTA) and Acting Inspector General John Kelly of the U.S. Department of Homeland Security (DHS) Office of Inspector General (OIG) made the announcement today.
Hitesh Madhubhai Patel, 42, of Ahmedabad, India, arrived in the United States and is scheduled to be arraigned today before a U.S. magistrate judge in federal court in Houston, Texas. The indictment, which was unsealed in October 2016, charged Patel and 60 other individuals and entities with general conspiracy, wire fraud conspiracy and money laundering conspiracy. The case is assigned to the Honorable David Hittner of the Southern District of Texas.
“Hitesh Patel operated a call center that allegedly preyed upon vulnerable U.S. citizens as part of a massive fraud scheme,” said Assistant Attorney General Benczkowski. “This extradition once again demonstrates the Department’s unwavering commitment to disrupt and dismantle the India-based call center scam industry and to work with our foreign partners to hold accountable those who perpetrate schemes that defraud our citizens. I especially would like to thank our Singaporean colleagues for their excellent cooperation with this extradition and their commitment to combatting transnational organized crime.”
“I cannot compliment enough the hard work and effort put into this case by the agents, analysts and attorneys of the many agencies involved,” said U.S. Attorney Patrick. “Large complex international cases like these often take years to bring in foreign-based defendants. I applaud our global partners in helping bring this case closer to a conclusion.”
“Today’s extradition should serve as a strong deterrent to anyone considering taking part in similar scams, and I hope it provides a sense of justice for the victims as well,” said HSI Executive Associate Director Benner. “HSI will continue to utilize its unique investigative mandate, in conjunction with our local, state and federal partners, to attack and dismantle the criminal enterprises who would seek to manipulate U.S. institutions and taxpayers.”
“Since 2013, the IRS impersonation scam has been on a relentless path, claiming more than 15,000 victims who have collectively suffered over $75 million in losses,” said Treasury Inspector General for Tax Administration J. Russell George. “TIGTA’s investigations, often conducted with other Federal agencies, have identified 140 scammers, including Patel, who have preyed upon taxpayers. Today’s extradition and arraignment are proof that TIGTA and its law enforcement partners will be equally relentless in rooting out individuals who fraudulently identify themselves as IRS employees in order to extort money from taxpayers. We especially appreciate the cooperation of the Government of Singapore for its role in the extradition.”
“This historic extradition should serve as notice to transnational criminal organizations of the lengths DHS is willing to go to arrest those who would enrich themselves by extorting the most vulnerable in our society,” said Special Agent in Charge David Green of DHS-OIG Houston, Texas Field Office. “The owners, managers and employees of overseas call centers who target U.S. residents should know that our pursuit of justice for victims of their scams does not stop at the water’s edge. We will continue to work with our international partners to identify these fraudsters, track them down and hold them accountable for their crimes.”
Singapore authorities apprehended Patel at the request of the United States pursuant to a provisional arrest warrant on Sept. 21, 2018, after flying from India to Singapore. The Singaporean Minister for Law issued a warrant on March 25, 2019 for Patel to be delivered into custody of the United States.
The indictment alleges that Patel operated the HGlobal call center conglomerate and participated in a complex fraudulent scheme involving a network of call centers based in Ahmedabad, India. Using information obtained from data brokers and other sources, India-based conspirators allegedly called potential victims while impersonating officials from the IRS or U.S. Citizenship and Immigration Services. According to the indictment, the call center conspirators then threatened victims with arrest, imprisonment, fines or deportation if they did not pay taxes or penalties to the government. When victims agreed to pay, the call centers used a network of U.S.-based conspirators to quickly liquidate and launder the extorted funds through the use of stored value cards or via wire transfers. As alleged in the indictment, the stored value cards were often registered by the scammers using misappropriated personal identifying information of thousands of identity theft victims, and conspirators collected the wire transfers by using fake names and fraudulent identifications.
According to the indictment, the call center conspirators also defrauded victims through other schemes, including via offering fake short-term loans or grants. The indictment alleges that the conspirators would then request a good-faith deposit to show the victims’ ability to pay back the loan or a fee to process the grant. The victims of the alleged scam never received any money after making the requested payment.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
A total of 24 domestic defendants associated with this transnational criminal scheme have previously been convicted and sentenced to terms of imprisonment of up to 20 years in the Southern District of Texas, District of Arizona and Northern District of Georgia. The defendants were also ordered to pay millions of dollars in victim restitution and money judgments and to forfeit seized assets. Some defendants were ordered to be deported based on their illegal immigration status, with another defendant having his U.S. citizenship revoked due to a separate conviction for immigration fraud. The remaining India-based defendants have yet to be arraigned in this case.
HSI, DHS-OIG and TIGTA conducted the investigation. The Department of Justice’s Office of International Affairs and HSI Singapore provided significant support in securing and coordinating Patel’s arrest and extradition, working in concert with their counterparts at the Singapore Attorney General’s-Chambers and the Singapore Police Force.
Trial Attorneys Michael Sheckels and Mona Sahaf of the Criminal Division’s Human Rights and Special Prosecutions Section, Amanda Wick of the Criminal Division’s Money Laundering and Asset Recovery Section, and Assistant U.S. Attorneys Mark McIntyre and Craig Feazel of the Southern District of Texas are prosecuting the case.
A Department of Justice website has been established to provide information about the case to victims and the public. Anyone who believes they may be a victim of fraud or identity theft in relation to this investigation or other telefraud scam phone calls may contact the FTC via this website.
Anyone seeking additional information about telefraud scams generally, or preventing identity theft or fraudulent use of their identity information, may find helpful information on the IRS tax scams website, the FTC phone scam website, and the FTC identity theft website.
Indian National Extradited to Face Charges for Leadership Role in Multimillion Dollar India-Based Call Center ScamRead the Press Release
HOUSTON – An Indian national has been extradited to the United States from Singapore to face charges related to his role as an operator of a call center network that targeted U.S victims. The massive India-based telephone impersonation fraud and money laundering conspiracy defrauded thousands of U.S. residents out of hundreds of millions of dollars.
U.S. Attorney Ryan K. Patrick made the announcement along with Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Executive Associate Director Derek N. Benner of Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Inspector General J. Russell George of the U.S. Treasury Inspector General for Tax Administration (TIGTA) and Acting Inspector General John Kelly of the Department of Homeland Security (DHS) Office of Inspector General (OIG).
Hitesh Madhubhai Patel, 42, of Ahmedabad, India, arrived in the United States and is scheduled to be arraigned today before U.S. Magistrate Judge Peter Bray at 1:30 p.m. in Houston. The indictment, which was unsealed in October 2016, charged Patel and 60 other individuals and entities with general conspiracy, wire fraud conspiracy and money laundering conspiracy. The case is assigned to the Honorable David Hittner of the Southern District of Texas.
“I cannot compliment enough the hard work and effort put into this case by the agents, analysts and attorneys of the many agencies involved,” said Patrick. “Large complex international cases like these often take years to bring in foreign-based defendants. I applaud our global partners in helping bring this case closer to a conclusion.”
“Hitesh Patel operated a call center that allegedly preyed upon vulnerable U.S. citizens as part of a massive fraud scheme,” said Benczkowski. “This extradition once again demonstrates the Department’s unwavering commitment to disrupt and dismantle the India-based call center scam industry and to work with our foreign partners to hold accountable those who perpetrate schemes that defraud our citizens.”
“Today’s extradition should serve as a strong deterrent to anyone considering taking part in similar scams, and I hope it provides a sense of justice for the victims as well,” said Benner. “HSI will continue to utilize its unique investigative mandate, in conjunction with our local, state and federal partners, to attack and dismantle the criminal enterprises who would seek to manipulate U.S. institutions and taxpayers.”
“Since 2013, the IRS impersonation scam has been on a relentless path, claiming more than 15,000 victims who have collectively suffered over $75 million in losses,” said George. “TIGTA’s investigations, often conducted with other federal agencies, have identified 140 scammers, including Patel, who have preyed upon taxpayers. Today’s extradition and arraignment are proof that TIGTA and its law enforcement partners will be equally relentless in rooting out individuals who fraudulently identify themselves as IRS employees in order to extort money from taxpayers. We especially appreciate the cooperation of the Government of Singapore for its role in the extradition.”
“This historic extradition should serve as notice to transnational criminal organizations of the lengths DHS is willing to go to arrest those who would enrich themselves by extorting the most vulnerable in our society,” said Special Agent in Charge David Green of DHS-OIG, Houston Field Office. “The owners, managers and employees of overseas call centers who target U.S. residents should know that our pursuit of justice for victims of their scams does not stop at the water’s edge. We will continue to work with our international partners to identify these fraudsters, track them down and hold them accountable for their crimes.”
Singapore authorities apprehended Patel at the request of the United States pursuant to a provisional arrest warrant on Sept. 21, 2018, after flying from India to Singapore. The Singaporean Minister for Law issued a warrant on March 25, 2019, for Patel to be delivered into custody of the United States.
The indictment alleges Patel operated the HGlobal call center conglomerate and participated in a complex fraudulent scheme involving a network of call centers based in Ahmedabad, India. Using information obtained from data brokers and other sources, India-based conspirators allegedly called potential victims while impersonating officials from the IRS or Citizenship and Immigration Services. According to the indictment, the call center conspirators then threatened victims with arrest, imprisonment, fines or deportation if they did not pay taxes or penalties to the government. When victims agreed to pay, the call centers used a network of U.S.-based conspirators to quickly liquidate and launder the extorted funds through the use of stored value cards or via wire transfers. As alleged in the indictment, the stored value cards were often registered by the scammers using misappropriated personal identifying information of thousands of identity theft victims, and conspirators collected the wire transfers by using fake names and fraudulent identifications.
According to the indictment, the call center conspirators also defrauded victims through other schemes, including via offering fake short-term loans or grants. The indictment alleges onspirators would then request a good-faith deposit to show the victims’ ability to pay back the loan or a fee to process the grant. The victims of the alleged scam never received any money after making the requested payment.
A total of 24 domestic defendants associated with this transnational criminal scheme have previously been convicted and sentenced to terms of imprisonment of up to 20 years in the Southern District of Texas, District of Arizona and Northern District of Georgia. The defendants were also ordered to pay millions of dollars in victim restitution and money judgments and to forfeit seized assets. Some defendants were ordered to be deported based on their illegal immigration status, with another defendant having his U.S. citizenship revoked due to a separate conviction for immigration fraud. The remaining India-based defendants have yet to be arraigned in this case.
HSI, DHS-OIG and TIGTA conducted the investigation. The Department of Justice’s Office of International Affairs and HSI Singapore provided significant support in securing and coordinating Patel’s arrest and extradition, working in concert with their counterparts at the Singapore Attorney General’s-Chambers and the Singapore Police Force.
Assistant U.S. Attorneys Mark McIntyre and Craig Feazel are prosecuting the case along with Trial Attorneys Michael Sheckels and Mona Sahaf of the Criminal Division’s Human Rights and Special Prosecutions Section, Amanda Wick of the Criminal Division’s Money Laundering and Asset Recovery Section.
A Department of Justice website has been established to provide information about the case to victims and the public. Anyone who believes they may be a victim of fraud or identity theft in relation to this investigation or other telefraud scam phone calls may contact the FTC via this website.
Anyone seeking additional information about telefraud scams generally, or preventing identity theft or fraudulent use of their identity information, may find helpful information on the IRS tax scams website, the FTC phone scam website, and the FTC identity theft website.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Final Defendant Convicted in Gruesome MS-13 MurderRead the Press Release
HOUSTON – A 23-year-old El Salvadorian citizen has pleaded guilty for his role in a horrific gang slaying, admitting he and two others murdered a teenager in the Sam Houston National Forest, announced U.S. Attorney Ryan K. Patrick.
Jose Leonel Bonilla Romero aka Jose Tupapa, who resided in Houston, entered a plea of guilty to aiding and abetting others with the murder of a 16-year-old male victim on Sept. 22, 2013. The others - Cristian Alexander Zamora aka Christian Zamora, Alex or Pollo, 28, and Ricardo Leonel Campos Lara aka La Muerte, 23, both also of El Salvador, who resided in Huntsville and Houston, respectively - previously pleaded guilty and are currently serving their federal prison sentences.
Romero, Zamora and Lara lured the juvenile victim to Sam Houston National Forest where the three of them attacked him with bats and machetes.
At the hearing today, the court heard that when officers found the mutilated body of the juvenile victim, they observed gaping wounds on his knees and ankles with his head nearly severed from his body. The victim’s family was in court today and wept as they heard the details of the killing. U.S. District Judge Ewing Werlein asked Romero “you’re intent at the time was to kill him?” to which Romer0 replied “yes.”
The investigation led police to Zamora who ultimately confessed his role in the crime, implicating Romero and Lara. All three defendants admitted to being members of the transnational MS-13 gang. They explained that a gang leader had ordered them to kill the victim, because he had supposedly cooperated with police in El Salvador, leading to the arrests of several MS-13 gang members.
The juvenile victim was intoxicated when they took him to the federal land in Huntsville. Romero admitted that once there, he struck the victim first with a baseball bat in the back of the head before the others butchered the victim’s body with machetes.
The medical examiner noted that the victim suffered deep cutting and chopping wounds, some all the way to the spinal cord with others causing partial decapitation.
Judge Werlein accepted the plea today and has set sentencing for June 21, 2019. At that time, Romero faces up to life in prison. Romero has been and will remain in custody pending that hearing.
Judge Werlein sentenced Zamora and Lara in 2016, both of whom received 420-month prison terms. They were further ordered to pay $13,092.42 in restitution. In handing down those sentences, the court noted the “willful and deliberate crime,” commenting that the murder was particularly brutal and its heinous, gruesome and savage nature.
The FBI, Houston Police Department, Texas Rangers, Walker County Sheriff’s Office and the U.S. Forest Service conducted the investigation. Assistant U.S. Attorneys Mark E. Donnelly and Casey MacDonald are prosecuting the case.
Laredo Man Sent to Prison in Case Praised by TrumpRead the Press Release
LAREDO, Texas – A 46-year-old Laredoan has been ordered to federal prison following his conviction of conspiring to transport 78 aliens, announced U.S. Attorney Ryan K. Patrick. Jesus Alberto De La Cruz pleaded guilty Oct. 4, 2018.
Today, visiting U.S. District Judge Keith Ellison ordered De La Cruz to serve 46 months in federal prison to be immediately followed by a year of supervised release.
On Aug. 10, 2018, De La Cruz approached the primary Border Patrol (BP) checkpoint on IH-35, just north of Laredo. A canine alerted to the semi-tractor and trailer he was driving and he was referred for secondary inspection.
Authorities became alarmed when he continued to drive the semi-tractor and trailer towards IH-35 instead of towards the secondary inspection area. Agents stopped him and ordered him and a passenger out of the vehicle.
Authorities soon observed people hidden inside the maintenance hatch in the rear of the trailer. The trailer doors were closed with a bolt seal preventing anyone inside from being able to exit.
They eventually found 78 undocumented aliens hidden inside, all of whom were questioned regarding their citizenship. They were all determined to be citizens of Mexico, Honduras, Ecuador, Brazil, El Salvador and Guatemala without proper legal documentation allowing them to enter or remain in the United States.
President Trump personally congratulated the BP agent canine enforcement officer for his work on the case.
Immigration and Customs Enforcement’s Homeland Security Investigations and BP conducted the investigation.
Assistant U.S. Attorney Francisco J. Rodriguez prosecuted the case.
Two Guatemalan Men Sentenced in Multiple Alien Smuggling Death CaseRead the Press Release
LAREDO, Texas – Two Guatemalan men have been ordered to federal prison after their involvement in an alien-smuggling event which resulted in the deaths of two Ecuadoran men, announced U.S. Attorney Ryan Patrick. Melvin L. Barahona-Godoy, 23, and Yoryi Alexis Perez, 29, both of Guatemala, pleaded guilty April 30, 2018.
Today, U.S. District Judge Keith P. Ellison sentenced Barahona-Godoy to 57 months of imprisonment, while Perez was ordered to serve a 78-month-term. Not U.S. citizens, they are expected to face deportation proceedings following completion of their sentences.
On Oct. 21, 2017, federal authorities encountered nine undocumented aliens at a residence in Laredo, one of whom was Barahona-Godoy. After conducting multiple interviews, law enforcement determined Barahona-Godoy and Perez guided the group of aliens across the Rio Grande river from Mexico into the United States the month prior. Perez was subsequently apprehended in 2018.
During that smuggling event, two persons drowned while attempting to cross the river. Both men were from Ecuador.
Both have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of Border Patrol. Assistant U.S. Attorney Christopher dos Santos prosecuted the case.
Houston Man Hammered for Producing Child PornographyRead the Press Release
HOUSTON – A 39-year-old Houston resident has been ordered to federal prison for nearly 30 years for sexual exploitation of a child, announced U.S. Attorney Ryan K. Patrick. John Ferguson was found guilty following a bench trial May 30, 2018.
Today, U.S. District Judge Gray Miller, who presided over that trial, ordered Ferguson to serve a total of 324 months in federal prison to be followed by a life term of supervised release. During that time, he will have to comply with numerous requirements designed to restrict his access to children and the internet. Additional information was also presented today, including a letter presented to the court from the mother of the victim detailing the torment Ferguson inflicted on her and her family. “He used that trust to assault my daughter while she was too young to communicate,” she said.
“I am still having trouble finding the words to say, but I can say that this severe emotional pain that I carry and try to push pack is heavy, it never gets any less severe, and is something that won’t go away,” she added.
Ferguson will also be ordered to register as a sex offender.
Authorities executed a search warrant at Ferguson’s residence in July 2015. The warrant was obtained based on information that led investigators to believe that Ferguson was accessing files from a website known to contain child pornography. The search resulted in the seizure of computers which yielded numerous photos and videos of child pornography.
In some of the videos, an underage girl is seen being sexually assaulted and in lewd and lascivious poses that show her genitalia. The minor female is seen on heavily stained carpet and on a bathroom counter during these acts. These items were later proven to match those seen in Ferguson’s residence. He is also seen in the videos.
As part of the investigation, authorities sent the images/videos to the National Center for Missing and Exploited Children (NCMEC), who identified several videos that Ferguson appeared to have produced. NCMEC contacted the FBI which resulted in the victim’s identification.
Ferguson was originally charged by criminal complaint, but fled before apprehension. Ultimately, he was captured.
This case was initiated pursuant to a nationwide investigation known as Operation Pacifier which targeted users of a TOR network child pornography website whose primary purpose was to advertise and distribute child pornography. Following the February 2015 arrest of the primary site administrator, law enforcement was able to identify more than 1,000 U.S.-based user IP addresses. One of those addresses resolved back to Ferguson's residence.
Ferguson has been in custody since his arrest where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation.
Assistant U.S. Attorney Sherri Zack prosecuted the case, which was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Four Men Fined After Illegally Sport Hunting from HelicopterRead the Press Release
LAREDO, Texas – Four men have been sentenced after their involvement in illegal sport hunting from a helicopter in violation of the federal Airborne Hunting Act, announced U.S. Attorney Ryan Patrick. In September and October of 2018, Cody Morganthaler, 36, of Oklahoma, pleaded guilty along with Edelmiro Martinez, 33, Eduardo Lopez, 39, and Inocente Sanchez, 56, all of Laredo.
Today, U.S. District Judge Keith P. Ellison sentenced Morganthaler, Martinez, and Lopez to the maximum allowed fine of $5,000, all of whom must also serve one year of probation. Sanchez was ordered to pay a $2,500 fine and must also serve the year of probation. While on probation, all of the men will not be allowed to possess firearms for personal sporting purposes.
“This case is an excellent example of the cooperative investigative efforts between the U.S. Fish & Wildlife Service (FWS) and the Game Wardens of the Texas Parks and Wildlife Department (TPWD),” said Phillip Land, Special Agent in Charge of FWS-Office of Law Enforcement - Southwest Region. “We take very seriously our mission and will continue to concentrate on and aggressively pursue individuals who are involved in the illegally taking of wildlife in Texas. We would like to thank the U.S. Attorney's Office for prosecuting this case and holding these individuals accountable."
At the hearing today, all four defendants claimed that while they knowingly engaged in the hunt, they did not know it was a crime to hunt animals from the air for sporting purposes. Judge Ellison noted he did not believe those claims.
Prior to the weekend of Oct. 14, 2017, Morganthaler booked a hunt at the Laredo Hunting Resort in Laredo, which Martinez owned. Lopez organized the hunt. A total of $12,000 was paid on Morganthaler’s behalf to hunt four exotic animals - an addax, a mouflon, an aoudad and a blackbuck antelope.
On Oct. 14, Morganthaler was able to locate, shoot and kill the addax and mouflon from the ground. Due to a time shortage, Lopez suggested Morganthaler shoot the remaining two animals from a helicopter. Morganthaler and Martinez agreed.
The following day, Sanchez piloted his helicopter with Morganthaler and Lopez as passengers. Morganthaler then used a rifle to locate, shoot and kill the aoudad and blackbuck antelope from within the helicopter for the purpose of trophy-hunting.
“The circumstances in this particular case would make any sportsmen and outdoor enthusiasts furious,” said Kevin Winters, Texas Game Warden. “The fact that these individuals organized a trophy hunt from a helicopter, which resulted in the harvesting of a trophy Aoudad (Barbary Sheep) and Blackbuck (Antelope), is unethical and is a violation of both state and federal laws. Texas Parks and Wildlife Department Game Wardens strive to protect our states natural resources.”
It is a violation of the federal Airborne Hunting Act to use an aircraft to shoot for the purpose of capturing or killing an animal for sport or trophy-hunting. Under federal law, any animals, weapons or aircraft which are involved or used to commit the violation are subject to forfeiture to the United States.
The FWS conducted the investigation with the assistance of the TPWD. Assistant U.S. Attorney Christopher dos Santos prosecuted the case.
Two Sentenced for Victimizing Many Across the NationRead the Press Release
HOUSTON – A 53-year-old Houston man has just been ordered to prison following his conviction of conspiracy to commit wire fraud, announced U.S. Attorney Ryan K. Patrick. James Campbell and co-defendant Hammed Akinola, a Nigerian citizen, entered guilty pleas Oct. 9, 2019.
Today, U.S. District Judge David Hittner sentenced, Campbell, 53, to 90 months in prison. At a hearing April 12, 2019, Judge Hittner upwardly departed from the U.S. Sentencing Guidelines and ordered Akinola to serve 180 months in federal prison.
In handing down the sentences, Judge Hittner noted the defendants ruined the lives of many across the nation in taking or attempting to take large sums of money from approximately 45 victims. Several of such victims included individuals sending money to their title company to close on a home in which, unbeknownst to them, money was fraudulently being transferred to a bank in Houston the defendants controlled. Not only did the victims lose their money, the banks took a large hit as well.
From on or about January 2016 through November 2017, Campbell and Akinola were involved in an international wire fraud conspiracy that consisted primarily of Business Email Compromise (BEC) fraud which targeted businesses and individuals that regularly perform wire transfer payments. They compromised legitimate business e-mail accounts through social engineering or computer intrusion techniques to conduct unauthorized transfers of funds by international co-conspirators.
The international co-conspirators hacked into the victims accounts and sent what appeared to the victims to be legitimate emails from banks or title companies. The victims, tricked into thinking such emails were from the bank or title companies, would then transfer the money to the accounts the defendants controlled, not knowing they were fraudulent emails.
Akinola was working with overseas conspirators who were orchestrating the BEC victimization. Those conspirators needed domestic bank accounts where they could send the funds stolen from the BEC fraud. Akinola and Campbell agreed to work together to open bank accounts and to recruit individuals in and around the Houston area to open bank accounts in order to receive the BEC wires.
Campbell and Akinola then recruited 20 other individuals who did open bank accounts to receive fraudulent funds. The proceeds of the fraud scheme were disbursed between the account holders, Campbell, Akinola and international accomplices.
In total, the Campbell and Akinola’s activity participating in the scheme and laundering its proceeds resulted in victims’ of BEC fraud transferring or attempting to transfer $10.3 million into to accounts they controlled.
Both 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 U.S. Postal Inspection Service and the FBI conducted the investigation. Assistant U.S. Attorneys Suzanne Elmilady and Melissa Annis are prosecuting the case.
Laredo Man Sentenced for Multi-Year Drug ConspiracyRead the Press Release
LAREDO, Texas – A 60-year-old resident of Laredo has been ordered to federal prison for his involvement in a multi-year conspiracy involving numerous types of narcotics, announced U.S. Attorney Ryan Patrick. Daniel Martin Huerta pleaded guilty Aug. 22, 2018.
Today, U.S. District Judge Keith P. Ellison sentenced Huerta to 120 months of imprisonment to be immediately followed by a five-year-term of supervised release. At the hearing, he was held accountable for being the leader and organizer of five or more persons during the course of the drug trafficking conspiracy.
Between May 1, 2012, and April 24, 2018, Huerta conspired with persons in his drug trafficking organization to possess with the intent to distribute large amounts of cocaine, methamphetamine, heroin and marijuana. Huerta and his co-conspirators were responsible for importing the controlled substances from Mexico and sending them to Dallas and other cities throughout the United States.
Huerta also laundered money in U.S. bank accounts and smuggled U.S. currency derived from drug proceeds into Mexico. Notably, on April 27, 2013, Huerta directed co-conspirators to smuggle $238,335 in bulk cash into Mexico. Law enforcement seized this load prior to the money exiting the U.S.
On Nov. 24, 2014, local authorities seized 24 kilograms of cocaine in four car batteries after a traffic stop of a flatbed trailer which belonged to Huerta.
Huerta has been in custody since his arrest on May 4, 2018. He 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 Organized Crime Drug Enforcement Task Force investigation with the assistance of Border Patrol. Assistant U.S. Attorney Christopher dos Santos prosecuted the case.
Houston Man Gets Significant Sentence for Carjacking and Related OffenseRead the Press Release
HOUSTON – A 35-year-old Houston man has been ordered to federal prison for carjacking and discharging a firearm during a crime of violence, announced U.S. Attorney Ryan K. Patrick. A federal jury sitting in Houston convicted Sean Rodriguez Sept. 26, 2018, after approximately three hours of deliberation following a three-day trial.
Today, Chief U.S. District Judge Lee H. Rosenthal handed Rodriguez a 80-month sentence for the carjacking. He also received an additional 10 years for the firearms charge which must be served consecutively to the other sentence imposed. The sentences will be immediately followed by two years of supervised release. In handing down the sentence, the court noted that this was a serious and dangerous crime and that the defendant was lucky that no one was injured or killed during the crime or his flight.
During the trial, the jury heard from victims who were carjacked at gunpoint. Both described how Rodriguez brandished a silver revolver and pointed it at them. Rodriguez had pistol-whipped the male victim, at which time the gun discharged above the man’s head.
A neighbor also provided testimony who explained how she helped the female victim after she ran to her house to call 911. The jury also heard that call.
The jury also heard from four police officers were involved in a high-speed chase after Rodriguez refused to pull over in the stolen vehicle three days later. The jury saw a helicopter video of the chase and the dash cam of one of the officers. During the chase, Rodriguez went the wrong way down streets at high rates of speed, nearly hit pedestrians and other vehicles before crashing into a family of six.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI, Texas Department of Public Safety, Houston Police Department, Harris County Institute of Forensic Science and Harris County Sherriff’s Office conducted the investigation. Assistant U.S. Attorneys Jennie Basile and Britni Cooper are prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Charter School Victims to Receive More Than a Half-Million in RestitutionRead the Press Release
HOUSTON – More than 4,000 parents who had entrusted their children to administrators at the Varnett Charter School are set to receive payments totaling more than $600,000, announced U.S. Attorney Ryan K. Patrick along with Special Agent in Charge Perrye K. Turner of the FBI, Special Agent in Charge Neil Sanchez from the Department of Education – Office of Inspector General (ED-OIG) and Acting Special Agent in Charge Sarah Kull of IRS – Criminal Investigation (CI).
Marian Annette Cluff, 70, was the founding superintendent of The Varnett Public School, a charter school with three locations in Houston, while her husband - Alsie Cluff Jr., 69, was the facilities and operations manager. They pleaded guilty Aug. 25, 2017, to mail fraud and conspiracy to commit tax evasion charges for embezzling millions of dollars from the school.
In June 2018, U.S. District Judge Melinda Harmon sentenced Marian Cluff to 120 months imprisonment and to pay a $295,596 fine, while her husband was ordered to serve a 36-month term of imprisonment and pay a $88,678 fine. More importantly, however, was that both were also ordered to pay a total of $4,443,755.69 in restitution.
In less than a year following the sentencing hearing, the Financial Litigation Unit (FLU) of the U.S. Attorney’s Office – with the substantial assistance of the U.S. Marshal Service (USMS) – collected the total restitution ordered in the case.
In an amended order issued in March 2019, U.S. District Judge Andrew S. Hanen ordered that $604,889.76 of that amount be distributed to the identified victim parents of the school. The U.S. District Clerk’s Office has indicated that restitution payments to the parents will be handled on an expedited basis.
At the time of the sentencing, the court heard that the couple embezzled millions of dollars in funds that were intended for the operation and function of the charter school and its programs. These included “money orders” parents had submitted to pay for school field trips and student fundraisers, such as chocolate sales, book fairs, school carnivals and other school-related activities.
The Cluffs used their positions of trust and authority and diverted and concealed money received from vendors of the school, insurance companies and federal agencies into the off-book accounts for the purpose of diverting money intended for the charter school for their own personal use and benefit. The Cluffs concealed the accounts from the charter school office manager, the school’s external accountant and their income tax preparer.
Testimony at sentencing also revealed the Cluffs conspired to commit tax evasion of approximately $1,827,477.55 in tax, interest and penalties owed to the IRS. The Cluffs did not pay income taxes on the money they received as a result of the scheme.
The Cluffs were ordered to surrender to the U.S. Bureau of Prisons in August 2018 and are currently serving their sentences.
Today’s announcement comes as National Crime Victim Rights Week (NCVRW) draws to a close. Every April, the Office for Victims of Crime leads communities throughout the country in their annual observances of NCVRW. This year’s theme - Honoring Our Past. Creating Hope for the Future - celebrated the progress made by those before us as we look to a future of crime victim services that is even more inclusive, accessible and trauma-informed.
The Department of Justice’s Mega Victim Case Assistance Program (MCAP) has also conducted research in this case to identify the current addresses for parents of former students. If your child attended the Varnett Public School between 2007–2014 and you have not received any correspondence from the U.S. Attorney’s Office, please contact the Victim Witness Unit at 713-567-9445.
The FBI, IRS-CI and Ed-OIG conducted the investigation. ED-OIG, USMS, FLU, U.S. District Clerk’s Office and MCAP worked collectively to assist in the restitution matter.
Assistant U.S. Attorney Quincy L. Ollison prosecuted the criminal case.
Two Local Men Get a Combined 46+ Years in Separate, but Similar Child Pornography CasesRead the Press Release
CORPUS CHRISTI, Texas - Two Corpus Christi men have received significant sentences for sexual exploitation crimes that involved the use of social media, announced U.S. Attorney Ryan K. Patrick. Jesus Ramirez Jr., 27, and Julio Cesar Diaz, 31, pleaded guilty in September and January 2018, respectively, to production of child pornography in separate, but similar cases. Diaz also admitted to online solicitation of a minor.
Today, Senior U.S. District Judge Janis Graham Jack sentenced Ramirez to 280 months in federal prison. Additional information was also presented today demonstrating how Ramirez had been involved in soliciting at least five minor females online, posing as a much younger male named “Justin.” In handing down the sentence, the court noted need to protect the public and the unlikelihood that a pedophile such as he would ever stop being a danger. Ramirez will serve the rest of his life on supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet.
At a hearing yesterday, Judge Jack ordered Diaz to serve a total of 276 months in federal prison to be immediately followed by a life term of supervised release. At his hearing, additional information was presented detailing the number of victims and acts against them. The court also heard that Diaz was arrested after arriving at a predetermined location to have sex with a minor victim. In handing down the sentence, the court noted the need to protect the public.
Both men will also be ordered to register as sex offenders.
Ramirez admitted he had been using a false identity online to persuade and ultimately coerce minors to create and send nude and sexually graphic photos and videos of themselves to him. Each of the minors reported receiving disturbing messages from Ramirez. In them, Ramirez claimed to have created images that appeared to be naked pictures of them using photos found on their various social media accounts combined with pornographic photos. He threatened to send the created photos to the their friends and classmates.
While there was no evidence he had met any of the victims in person, law enforcement did recover evidence that he intended to do so using false and misleading information and messages.
Diaz admitted he had been using social media and a false name to meet minor females in and around Corpus Christi, grooming them via phone calls and chats. After a brief time, Diaz would request nude and sexually explicit images of the children and ultimately met some of the minors to engage in sexual activity.
Immigration and Customs Enforcement’s Homeland Security Investigations and Corpus Christi Police Department’s – Internet Crimes Against Children Task Force conducted both investigations with the assistance of the National Center for Missing and Exploited Children.
Assistant U.S. Attorney Brittany L. Jensen is prosecuting the case, which was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
President of E-Commerce Company Pleads Guilty to Price FixingRead the Press Release
HOUSTON - An e-commerce company president entered a guilty plea today for conspiring to fix prices for customized promotional products sold online to customers in the United States.
U.S. Attorney Ryan K. Patrick made the announcement along with Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division and Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office.
According to the felony charges filed Nov. 1, 2018, and the plea agreement today, Akil Kurji, owner and president of Gennex Media, and his co-conspirators agreed to fix the prices of customized promotional products sold online from as early as May 2014 until at least June 2016. These products included wristbands, lanyards, temporary tattoos and buttons. Kurji and his co-conspirators used social media platforms and encrypted messaging applications, such as Facebook, Skype and Whatsapp, to reach and implement their illegal agreement. Kurji is the fifth individual to enter a guilty plea in the Department of Justice’s ongoing promotional products investigation. To date, 11 defendants have been charged in the investigation into the online customized promotional products industry.
“Price fixing for small, logo branded items is illegal, just like it would be for a pair of Fortune 500 companies,” said U.S. Attorney Patrick. “In the end, consumers are harmed by paying inflated prices for items.”
“Today’s guilty plea demonstrates the Antitrust Division’s commitment to prosecuting executives who conspire to fix prices of products sold online,” said Delrahim. “The Department and its law enforcement partners are committed to detecting and preventing collusion carried out using encrypted messaging applications and social media platforms.”
“The FBI investigates unlawful business practices including those that seek to corrupt business markets,”said Turner. “We work hard to safeguard American consumers so that they can buy goods and services with confidence they are paying a competitive price.”
Kurji is charged with price fixing in violation of the Sherman Act, which carries a maximum sentence of 10 years in prison and a $1 million fine for individuals. The maximum fine for an individual may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
This prosecution arose from an ongoing federal antitrust investigation into price fixing in the online promotional products industry, which is being conducted by the Antitrust Division’s Washington Criminal I Section with the assistance of the U.S. Attorney’s Office of the Southern District of Texas and the FBI’s Houston Field Office. Anyone with information on price fixing or other anticompetitive conduct related to other products in the customized promotional products industry should contact the Antitrust Division’s Citizen Complaint Center at 888-647-3258 or visit www.justice.gov/atr/contact/newcase.html.
President of E-Commerce Company Pleads Guilty to Price FixingRead the Press Release
An e-commerce company president entered a guilty plea today for conspiring to fix prices for customized promotional products sold online to customers in the United States, the Department of Justice announced.
Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division, U.S. Attorney Ryan K. Patrick for the Southern District of Texas, and Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office made the announcement.
According to the felony charges filed on Nov. 1, 2018, and the plea agreement filed today in the U.S. District Court of the Southern District of Texas in Houston, Akil Kurji, owner and president of Gennex Media, and his co-conspirators agreed to fix the prices of customized promotional products sold online from as early as May 2014 until at least June 2016. These products included wristbands, lanyards, temporary tattoos, and buttons. Kurji and his co-conspirators used social media platforms and encrypted messaging applications, such as Facebook, Skype, and Whatsapp, to reach and implement their illegal agreement. Kurji is the fifth individual to enter a guilty plea in the Department of Justice’s ongoing promotional products investigation. To date, 11 defendants have been charged in the investigation into the online customized promotional products industry.
“Today’s guilty plea demonstrates the Antitrust Division’s commitment to prosecuting executives who conspire to fix prices of products sold online,” said Assistant Attorney General Delrahim. “The Department and its law enforcement partners are committed to detecting and preventing collusion carried out using encrypted messaging applications and social media platforms.”
“Price fixing for small, logo branded items is illegal, just like it would be for a pair of Fortune 500 companies,” said U.S. Attorney Patrick. “In the end, consumers are harmed by paying inflated prices for items.”
“The FBI investigates unlawful business practices including those that seek to corrupt business markets,” said Perrye K. Turner, Special Agent in Charge of FBI’s Houston Field Office. “We work hard to safeguard American consumers so that they can buy goods and services with confidence they are paying a competitive price.”
Kurji is charged with price fixing in violation of the Sherman Act, which carries a maximum sentence of 10 years in prison and a $1 million fine for individuals. The maximum fine for an individual may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
This prosecution arose from an ongoing federal antitrust investigation into price fixing in the online promotional products industry, which is being conducted by the Antitrust Division’s Washington Criminal I Section, with the assistance of the U.S. Attorney’s Office of the Southern District of Texas and the FBI’s Houston Field Office. Anyone with information on price fixing or other anticompetitive conduct related to other products in the customized promotional products industry should contact the Antitrust Division’s Citizen Complaint Center at 888-647-3258 or visit www.justice.gov/atr/contact/newcase.html.
Masseuse Sent to Federal Prison for Heroin TraffickingRead the Press Release
CORPUS CHRISTI, Texas – A 42-year-old Houston woman has been sentenced in Corpus Christi federal court following her conviction of possessing with the intent to distribute approximately 10 pounds of heroin, announced U.S. Attorney Ryan K. Patrick. A federal jury convicted Marlo Denise Young Feb. 6, 2019, following two days of trial and approximately 20 minutes of deliberations.
Today, Senior U.S. District Judge Janis Graham Jack handed Young a 168-month sentence to be immediately followed by five years of supervised release. At the hearing, additional evidence was offered that demonstrated Young lied under oath and detailed how she attempted to obstruct justice by having a family member remotely delete text messages and map data from her cell phone.
On Oct. 30, 2018, law enforcement conducted a traffic stop on Young near Kingsville. At that time, officers found more than $4,800 in cash, hydroponic marijuana and approximately 4.7 kilograms of heroin. The heroin was concealed inside Young’s car battery and valued at approximately $188,000.
Young claimed she was a licensed physical therapist in the Houston area. However, the evidence showed she was actually an unlicensed masseuse who provided massages to people in their hotels and homes.
At trial, Young denied knowingly transporting the narcotics, claiming instead that she was taking a trip to the valley with a friend who was moving.
However, federal agents testified about their investigation which revealed the Young was traveling alone, had made another trip to the valley the previous day and that she had fabricated the story she told law enforcement officers.
Young also attempted to obstruct justice and impede the investigation after her arrest. While in custody, she instructed an individual to remotely log into her phone account and delete specific text messages from her phone, which was in law enforcement’s possession. Young also directed this individual to delete travel information from the navigation application on her phone, which might have allowed authorities to retrace her route.
Young 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 the South Texas Specialized Crimes and Narcotics Task Force conducted the investigation. Assistant U.S. Attorneys Jeremy C. Fugate and Robert D. Thorpe are prosecuting the case.
Former Sex Offender Fugitive Gets 60 Years for Multiple Child Pornography ConvictionsRead the Press Release
HOUSTON - A 44-year-old man from Humble has received a massive federal prison sentence following his convictions for sexual exploitation of a child as well as receipt and possession of child pornography, announced U.S. Attorney Ryan K. Patrick. Moises Valdez pleaded guilty April 4, 2018.
Today, U.S. District Judge Gray Miller handed Valdez a sentence of 360 months for the sexual exploitation of a child, otherwise known as production of child pornography. He also received 240 months for the receipt of child pornography and another 120 months for the possession of child pornography. The sentences will all run consecutively for a total of 720 months in federal prison. There is no parole in the federal system. Valdez also received a lifetime of supervised release.
Valdez came to the attention of law enforcement following an investigation which began May 22, 2015, into persons using the internet to traffic in child pornography. An FBI special agent was able to locate and identify Valdez as the owner of a computer offering to participate in the distribution and receipt of child pornography movies through a peer-to-peer network.
On Jan. 29, 2016, authorities executed a search warrant at Valdez’ residence, at which time, they seized a laptop and a desktop computer located within a bedroom belonging to Valdez. A forensic review resulted in the discovery of approximately 75 images and more than 180 videos of child pornography.
Additionally, agents also found one particular video that appeared to be taken from a cellular phone which agents believed Valdez had produced. This video was of an underage female being vaginally penetrated by an adult male penis. Also depicted in the video was an adult male’s fingers that can be seen spreading open the vagina of the child who appears to be sleeping throughout the sexual assault.
Agents were able to identify the bedroom as that of belonging to Valdez.
On March 8, 2016, agents contacted and interviewed Valdez’ wife who identified the child depicted in the video as a minor relative who would have been four –years-old at the time of the assault. She further able identified body parts of Valdez that were seen in the video.
A warrant for his arrested was issued that day, but he had absconded. Authorities ultimately apprehended him April 18, 2016, upon his entry into the United States from Mexico. The investigation revealed he had fled to Mexico after he learned agents had identified him as the male in the video.
At the sentencing hearing today, the court heard evidence regarding a pattern of abuse which rendered Valdez a repeat and dangerous sex offender. The court heard that Valdez had sexually abused three other minor females in addition to the four-year-old victim from the video. These victims were either family members or were children whom Valdez acted as a father figure. One victim was as young as three-years-old when the abuse began. The total amount of abuse on these victims spanned several years. Further, one of the victims told the court that what Valdez did destroyed her family.
The FBI conducted the investigation.
Valdez has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case, being prosecuted by Assistant U.S. Attorney Kimberly Ann Leo, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Quiroga Brothers Sentenced in Drug and Bulk Cash Smuggling ConspiracyRead the Press Release
LAREDO, Texas – Two brothers have been ordered to federal prison following their convictions of conspiracy to possess with intent to distribute cocaine and conspiracy to smuggle bulk cash from Mexico, announced U.S. Attorney Ryan K. Patrick. Mario Luis Quiroga Trevino, 43, a Mexican national who was illegally residing in Laredo, his brother Javier Quiroga, 48, of Laredo, pleaded guilty Nov. 6, 2018.
Today, Visiting U.S. District Judge Hilda Tagle sentenced Quiroga to a total of 70 months in federal prison followed by three years of supervised release. At the hearing, the court noted that although not as highly-involved in the conspiracy as was his brother, Quiroga could not justify being a minor player. He engaged in continuing criminal activity over several months and played a role in storing, transporting and delivering cocaine as well as recruiting a driver to transport a load of cocaine to the Houston area.
The court sentenced Trevino April 9, 2019, to 120 months on the drug conspiracy and 60 months for the other charge to run concurrently. In imposing the sentence, the court found him to be an organizer, leader and manager. Not a U.S. citizen, he is expected to face deportation proceedings following his term of imprisonment.
The two brothers were involved in the conspiracy which spanned from April 1, 2015, to on or about Oct. 16, 2015.
The investigation identified the brothers’ involvement in three seizures related to the overall conspiracy. The first occurred April 1, 2015, when Quiroga, at the direction of his brother, delivered more than two kilograms of cocaine at a gas station on Mines Road in Laredo.
Then, on Oct. 21, 2015, Trevino coordinated with his brother to transport more than 20 kilograms of cocaine from Laredo to the Houston area. Authorities observed Trevino delivering the cocaine to Quiroga’s residence in Laredo. Quiroga then delivered the narcotics to another individual who arranged to have the cocaine transported to Houston for delivery. Law enforcement seized the 20 brick of cocaine which had an estimated value of approximately $500,000.
The third incident involved the seizure of $12,000. According to their admissions at the time of their pleas, Quiroga traveled to Nuevo Laredo, Mexico, to pick up $12,000 at his brother’s direction. Quiroga then smuggled it into the United States through the port of entry at Laredo. Quiroga then transferred that money to someone who had secured a truck driver to transport a load of cocaine from Laredo to the Houston area.
Trevino has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. Quiroga was allowed to remain on bond pending surrender at a later date.
The Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorney Mary Lou Castillo is prosecuting the case.
Four Texas Men Charged with Bribery ConspiracyRead the Press Release
Four Texas men, including a former Weslaco City Commissioner and a former Hidalgo County Commissioner, were charged today in a 74-count superseding indictment that alleges the four men conspired with others to pay bribes to two Weslaco City Commissioners.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ryan K. Patrick for the Southern District of Texas, Special Agent in Charge Christopher Combs of the FBI San Antonio Office and Acting Special Agent in Charge Sarah Kull of the IRS Criminal Investigation (CI) Houston Field office, made the announcement.
The indictment filed in the Southern District of Texas yesterday charges former Weslaco City Commissioner John F. Cuellar, 56, and Richard Quintanilla, 51, both of Weslaco, Texas; former Hidalgo County Commissioner Arturo C. Cuellar Jr., 65, of Hidalgo County, Texas; and Daniel J. Garcia, 40, of Rio Grande City, Texas. They allegedly conspired to bribe and bribed John Cuellar, 56, of Weslaco, Texas and another Weslaco City Commissioner – Gerardo Tafolla, 52, of Weslaco, Texas, in exchange for official actions favorable to three engineering companies. Tafolla pleaded guilty to one count of federal program bribery on April 8, 2019, before the Honorable Micaela Alvarez of the Southern District of Texas.
According to the superseding indictment, from approximately March 2008 through December 2015, Leonel J. Lopez, 52, of Starr County, Texas, received approximately $4.1 million from two engineering companies and shared approximately $1.398 million with Cuellar Jr. Lopez pleaded guilty to one count of federal program bribery on March 22, 2019, before the Honorable Ricardo H. Hinojosa of the Southern District of Texas. The superseding indictment further alleges that Cuellar Jr. used a company he controlled to pay Cuellar approximately $405,000, disguised as legitimate legal expenses. In exchange for these payments, Cuellar allegedly took several official actions to benefit the three construction companies, including the award of a $38.5 million contract to rehabilitate Weslaco’s water treatment plant. The superseding indictment also alleges that Lopez paid additional bribes through Quintanilla to Tafolla, according to the allegations.
The superseding indictment further alleges that Lopez and Cuellar Jr. enlisted Garcia, an attorney, to launder approximately $90,000 in bribe payments to Cuellar through Garcia’s interest on lawyers trust account.
An indictment contains only allegations. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
FBI and IRS-CI conducted the investigation. Trial Attorneys Peter M. Nothstein and Jessica C. Harvey of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Roberto Lopez Jr. of the Southern District of Texas are prosecuting the case.
Former Officials Indicted in Weslaco Bribery ConspiracyRead the Press Release
McALLEN, Texas – A McAllen grand jury has returned a 74-count superseding indictment against four local men alleging they conspired with others to pay bribes to two Weslaco City Commissioners.
U.S. Attorney Ryan K. Patrick made the announcement along with Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Special Agent in Charge Christopher Combs of the FBI San Antonio Office and Acting Special Agent in Charge Sarah Kull of IRS-Criminal Investigation (CI) Houston Field office.
The indictment filed in the Southern District of Texas yestrday charges former Weslaco City Commissioner John F. Cuellar, 56, and Richard Quintanilla, 51, both of Weslaco; former Hidalgo County Commissioner Arturo C. Cuellar Jr., 65, of Hidalgo County; and Daniel J. Garcia, 40, of Rio Grande City. They allegedly conspired to bribe and bribed John Cuellar, 56, of Weslaco, and another Weslaco City Commissioner – Gerardo Tafolla, 52 of Weslaco - in exchange for official actions favorable to three engineering companies. Tafolla pleaded guilty to one count of federal program bribery on April 8, 2019, before the Honorable Micaela Alvarez of the Southern District of Texas.
According to the superseding indictment, from approximately March 2008 through December 2015, Leonel J. Lopez, 52, of Starr County, received approximately $4.1 million from two engineering companies and shared approximately $1.398 million with Cuellar Jr. Lopez pleaded guilty to one count of federal program bribery on March 22, 2019, before the Honorable Ricardo H. Hinojosa of the Southern District of Texas.
The superseding indictment further alleges that Cuellar Jr. used a company he controlled to pay Cuellar approximately $405,000, disguised as legitimate legal expenses. In exchange for these payments, Cuellar allegedly took several official actions to benefit the three construction companies, including the award of a $38.5 million contract to rehabilitate Weslaco’s water treatment plant. The superseding indictment also alleges Lopez paid additional bribes through Quintanilla to Tafolla, according to the allegations.
The superseding indictment further alleges that Lopez and Cuellar Jr. enlisted Garcia, an attorney, to launder approximately $90,000 in bribe payments to Cuellar through Garcia’s interest on lawyers trust account.
If convicted, they face up to 20 years in federal prison on each of the wire fraud and money laundering charges, 10 years for a conviction of federal programs bribery and another five years upon conviction of violations of interstate and foreign travel or transportation in aid of racketeering enterprises.
FBI and IRS-CI conducted the investigation. Assistant U.S. Attorney Roberto Lopez Jr. is prosecuting the case along with Trial Attorneys Peter M. Nothstein and Jessica C. Harvey of the Criminal Division’s Public Integrity Section.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Former Couple Sentenced in Crystal Meth ConspiracyRead the Press Release
CORPUS CHRISTI, Texas – Two Corpus Christi residents have been ordered to federal prison following their conviction for conspiracy to sell crystal methamphetamine and using firearms to facilitate that crime, announced U.S. Attorney Ryan K. Patrick. Ray Green, 30, and his girlfriend at the time Julie De Los Rios, 28, pleaded guilty Jan. 31, 2019.
Today, Senior U.S. District Court Judge Janis Graham Jack sentenced Green to 210 months, while De Los Rios received a 35-month-term of imprisonment. At the hearing, it was noted that the two had been found to be distributing methamphetamine on at least two occasions while they were in possession of firearms. Both were further ordered to serve respective terms of five years of supervised release.
Law enforcement began investigating Green and De Los Rios in August 2018. At that time, local authorities reported the two had been arrested during a traffic stop and were in possession of a sizable amount of crystal methamphetamine, firearms and other evidence indicating they were selling narcotics.
On Nov. 20, 2018, Green and De Los Rios were in a vehicle distributing narcotics when authorities arrested them. A search of their vehicle revealed Green and De Los Rios were in possession of approximately 275 grams of crystal methamphetamine and a stolen handgun which they carried in order to protect themselves while they were trafficking narcotics.
Immigration and Custom Enforcement’s Homeland Security Investigations, Drug Enforcement Administration, Live Oak County Sherriff’s Office and Jim Wells County Constable’s Office conducted the joint investigation. Assistant U.S. Attorney David Paxton prosecuted the case.
Drug Conspiracy Sends Women to Federal PrisonRead the Press Release
CORPUS CHRISTI, Texas – Two Galveston women have been sentenced to prison in Corpus Christi federal court for their convictions of conspiring to possess with the intent to distribute more than six kilograms of methamphetamine, announced U.S. Attorney Ryan K. Patrick. Beatrice Adriana Ortega, 28, pleaded guilty Nov, 2, 2017, while co-defendant Esmeralda Guadalupe Ramos, 27, pleaded guilty the following month.
Today, U.S. District Judge Janis Jack handed Ramos a 35-month sentence. On Monday, April 8, Judge Jack ordered Ortega to serve a 42-month term of imprisonment. Both were further ordered to serve five years of supervised release following their sentences. In imposing the terms of incarceration, the court noted that even though neither defendant had prior criminal history, a term of imprisonment was appropriate given the amount of methamphetamine they were transporting.
On Aug. 6, 2017, Ortega and Ramos arrived at the Sarita Border Patrol checkpoint in a 2012 blue Chrysler 200. During primary inspection, a canine alerted to the vehicle. Upon further inspection, authorities discovered six bundles wrapped in black electrical tape and clear cellophane hidden within the dashboard of the vehicle. In those packages was a total of 6.28 kilograms of methamphetamine.
Both women were permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigation with the assistance of Border Patrol. Assistant U.S. Attorney Robert D. Thorpe Jr. is prosecuting the case.