Southern District of Texas
Press releases recorded for this federal judicial district.
Mexican Police Officer Indicted for Importing MethRead the Press Release
LAREDO, Texas – A federal grand jury has just returned an indictment charging a 41-year-old Mexican citizen with conspiracy to import methamphetamine and importation of methamphetamine, announced U.S. Attorney Ryan K. Patrick.
Gabriel Garrido Isaias was originally charged by criminal complaint March 15, 2019, and was later remanded to custody. Today, a Laredo grand jury returned the two-count indictment charging him with conspiracy to import and importing methamphetamine into the United States. He is set for his arraignment before U.S. Magistrate Judge Sam Sheldon on April 18, 2019.
According to court documents, Isaias approached the Lincoln-Juarez Bridge #2 on March 14, 2019, driving a Ford F-150. He was sent to secondary examination after which an x-ray examination allegedly revealed anomalies in all four tires. A search of the tires resulted in the discovery of 38.36 kilograms of methamphetamine, according to the allegations.
Further investigation revealed the defendant to be a resident of Nuevo Laredo, Mexico, and is currently a Mexican police officer.
If convicted, he faces a minimum of 10 years and up to life in prison and a possible $10 million maximum fine.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of Customs and Border Protection. Assistant U.S. Attorney April Ayers-Perez is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Former Donna ISD Police Officer Heads to Prison for Assisting “Rip Crew”Read the Press Release
McALLEN, Texas – A 40-year-old Donna man has been ordered to federal prison following his conviction of conspiracy to possess with the intent to distribute more than 100 kilograms of marijuana, announced U.S. Attorney Ryan K. Patrick. Juan Fernando Mata pleaded guilty Jan. 9, 2019.
Today, U.S. District Judge Micaela Alvarez ordered Mata to serve 130 months in federal prison to be immediately followed by four years of supervised release.
At the hearing, Judge Alvarez considered Mata’s role in assisting members of a “rip crew” by conducting fraudulent traffic stops on drug load vehicles so that members of that crew could steal the controlled substances.
Specifically, the court considered Mata’s role in conducting traffic stops in January 2016 and another in May 2017, to assist members in stealing approximately nine kilograms of cocaine and approximately 400 pounds of marijuana, respectfully,
The court also heard allegations were made about Mata assisting members of a second “rip crew” by conducting similar activity.
In pronouncing the sentence today, Judge Alvarez noted that while the rip crew members’ conduct in conducting home invasions and carjackings was reprehensible, Mata’s conduct could also be described as such. The court stated how Mata’s actions eroded the public trust and the sense of security in knowing that law enforcement officers are individuals that can be turned to in the event of a home invasion or other criminal conduct. Judge Alvarez noted that when any law enforcement officer commits criminal conduct, it effects law enforcement as a whole and gives the area a bad name.
In considering the many letters of support for Mata, including the City of Donna Mayor and employees of Donna Independent School District, the court noted its concern with individuals viewing him as a role model. She stated that it speaks to poor principles when someone sworn to uphold and enforce the law completely disregards it.
Mata was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI and Drug Enforcement Administration conducted the investigation with the assistance of Border Patrol and Hidalgo County Sheriff’s Office. Assistant U.S. Attorneys Roberto Lopez Jr. and K. Alejandra Andrade prosecuted the case.
Brownsville Man Heads to Federal Prison for Buying Crack CocaineRead the Press Release
BROWNSVILLE, Texas – A 46-year-old man has been ordered to federal prison following his conviction of possession with intent to distribute cocaine base, announced U.S. Attorney Ryan K. Patrick. Martin Arambula pleaded guilty Dec. 27, 2017.
Today, U.S. District Judge Fernando Rodriguez Jr. sentenced Arambula t0 120 months to be immediately followed by four years of supervised release. At the hearing, the court noted Arambula’s extensive criminal history, which included two robbery convictions.
During the summer of 2016, law enforcement initiated an investigation into the smuggling and distribution of multi-kilogram shipments of illicit narcotics within the United States by members of a drug trafficking organization operating within Cameron County.
Agents with the Drug Enforcement Administration (DEA) who were investigating the drug trafficking organization witnessed Arambula order crack cocaine from his supplier. Law Enforcement seized the drugs as they were being delivered to Arambula. The crack was intended to be sold in local street level sales in Cameron County.
Through the course of the investigation, agents were able to determine Arambula regularly bought crack cocaine from Jesus Hector Garza Jr.
Garza, 31, of Brownsville, previously pleaded guilty to conspiracy to possess with intent to distribute 50 grams or more of “Ice” methamphetamine and is awaiting sentencing.
Arambula 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 DEA and FBI conducted the Organized Crime Drug Enforcement Task Force investigation known as Operation Fatstacks. Assistant U.S. Attorney Karen Betancourt is prosecuting the case.
Two Sentenced for Robbing Local Business with a FirearmRead the Press Release
CORPUS CHRISTI, Texas – Two local men have been ordered to federal prison following their convictions of robbery and brandishing a firearm in furtherance of a crime of violence, announced U.S. Attorney Ryan K. Patrick.
Matthew Joseph Bryant, 24, and Nathealle Avori Tyrell Jones, 21, each pleaded guilty Jan. 31, 2019, as did and Corey Alexander Newman, 25.
Today, Senior U.S. District Judge Janis Graham Jack handed Bryant and Jones each a 33-month sentence for the robbery to be followed by an additional 84 months for the firearms charge which must be served consecutively to the other sentence imposed. Both must also serve five years of supervised release following completion of their sentences.
Newman is pending his sentencing hearing.
On Aug. 5, 2018, local law enforcement responded to an aggravated robbery at the Texas Food Mart located in the 6100 block of Williams. As officers arrived in the area, they observed a suspect vehicle and attempted to conduct a traffic stop. The vehicle then fled from the officers until crashing into a utility pole.
At that time, Bryant, Jones and Newman fled from the vehicle, but were soon arrested and taken into custody.
Officers searched the vehicle and surrounding area and discovered U.S. currency, convenience store items, cigarettes, disposable gloves and a loaded handgun with an extended magazine.
Surveillance footage at the location showed that two males wearing dark clothing and bandanas covering their faces entered the store. As one male stayed by the front door and pointed a handgun at the clerk, the other male went behind the counter and emptied the cash register into a bag along with cigarettes and flavored cigars. The male then took the clerk’s cellular phone and wallet before leaving the store and driving off in a dark colored sedan.
During the follow-up investigation, law enforcement was able to determine that Bryant was in possession of the firearm and entered the store with another individual while Jones, the getaway driver, and Newman waited outside.
Bryant and Jones have been and will remain in custody pending transfer to U.S. Bureau of Prisons facility to be determined in the near future.
The Corpus Christi Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney Lance Watt is prosecuting the case.
Septuagenarian Heads to Prison for Possessing over 30K Images of “Morphed” Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – A 72-year-old resident of Corpus Christi has been ordered to federal prison following his conviction of possessing child pornography, announced U.S. Attorney Ryan K. Patrick. Clifford Mecham Jr. was found guilty during a bench trial in in January 2019.
Today, U.S. District Judge Janis Graham Jack, who presided over that trial, sentenced Mecham to 97 months in prison. Additional information was also presented today, including letters from the victims detailing how the offense had impacted them and their families. In handing down the sentence, the court noted she felt the need to protect the community and was especially concerned that Mecham seemed to have no concept of why what he did was wrong. Mecham was further ordered to pay $2966.78 in restitution to the known victims and will serve the rest of his life on supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. Mecham will also be ordered to register as a sex offender.
At trial, the court heard that at the time of his arrest, Mecham was in possession of 31,562 images and 1,741 videos containing child pornography which he had created himself. He had morphed images and videos of pornographic actresses and models and replaced their faces with the faces of children. In many images, Mecham altered the images further by morphing the male actors faces with his own to make it appear as though he was engaging in various sexual acts with the children.
When authorities took Mecham into custody he explained that he created the images because he thought they were “cute.”
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations and Corpus Christi Police Department’s – Internet Crimes Against Children Task Force conducted the investigation 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.”
Meth Distributor Heads to Federal PrisonRead the Press Release
CORPUS CHRISTI, Texas – A 36-year-old Houston resident has sentenced in Corpus Christi federal court following his conviction for possessing with intent to distribute crystal methamphetamine, announced U.S. Attorney Ryan K. Patrick. Aaron Dee Summer III pleaded guilty Jan. 31, 2019, to conspiracy to possess with intent to distribute narcotics.
Today, Senior U.S. District Court Judge Janis Graham Jack sentenced Summer to 145 months in federal prison to be immediately followed by five years of supervised release. At the hearing, the court noted Summer did not have a minor role in the offense as he claimed.
On Nov. 17, 2018, law enforcement conducted an inspection of a charter bus traveling north through the U.S. Customs and Border Protection (CBP) immigration checkpoint near Falfurrias. During the investigation, authorities discovered luggage belonging to Summer with 28 bundles totaling approximately 13.5 kilograms of crystal methamphetamine.
Law enforcement arrested him and discovered he was hiding an additional kilogram of Fentanyl strapped to his torso underneath his clothing. Summer admitted he had transported narcotics on the bus from Mexico and the Rio Grande Valley area of Texas on several occasions over the previous six months.
Summer has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration and CBP conducted the investigation. Assistant U.S. Attorney David Paxton is prosecuting the case.
Houston Woman Heads to Prison for FraudRead the Press Release
HOUSTON – A 44-year-old Houston resident has been ordered to federal prison following her conviction of theft of government money, announced U.S. Attorney Ryan K. Patrick. Sheiletta McGrew pleaded guilty Sept. 17, 2018.
Today, U.S. District Judge Vanessa D. Gilmore ordered McGrew to serve a total 24-month sentence to be immediately followed by two years of supervised release. She was further ordered to pay restitution in the amount of $144,943.
McGrew owned a tax preparation business called BABY STEPS 4 ME which she operated from her Houston residence. At the time of her plea, McGrew admitted she unlawfully acquired the personal identifying information (PII) of numerous individuals to include names, dates of birth, Social Security numbers and other sensitive personal information. She then used the unlawfully acquired PII to file false and fraudulent income tax returns with the IRS.
McGrew submitted the fraudulent returns without the consent of the taxpayers listed on the returns and requested the refunds be directly deposited into bank accounts she controlled.
McGrew admitted she filed at least 82 fraudulent returns during this scheme and received fraudulent refunds in the amount of $257,765.
McGrew was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
IRS-Criminal Investigation (CI) conducted the investigation. Assistant U.S. Attorney Jay Hileman is prosecuting the case.
Firearm Conviction Sends Texas Man to Federal PrisonRead the Press Release
CORPUS CHRISTI, Texas – A 52-year-old Houston man has been sentenced in Corpus Christi federal court following his conviction for being a previously convicted felon in possession of a firearm, announced U.S. Attorney Ryan K. Patrick. A jury returned a guilty verdict against Donnell Eldridge Jan. 9, 2019.
Today, Senior U.S. District Judge Janis Graham Jack sentenced Eldridge to 85 months in federal prison to be immediately followed by three years of supervised release. In handing down the sentence, the court commented that nothing had deterred Eldridge’s continued criminal conduct and noted the importance of protecting the community.
On June 20, 2018, officers with the Corpus Christi Police Department (CCPD) were conducting an investigation near City Hall located in the 1200 block of Leopard Street. As they approached a group of individuals, Eldridge quickly began to walk off and failed to respond to questions.
One of the officers continued to walk behind him and observed Eldridge remove an item from his waistband and throw it on the ground. An officer soon located a loaded .22 caliber revolver in the surrounding area.
Eldridge had previously been convicted of multiple felony offenses, including aggravated robbery, and is prohibited from possessing firearms and ammunition per federal law.
Eldridge has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Corpus Christi Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorneys Lance Watt and Neel Kapur are prosecuting the case.
Three Texas Men Arrested and Charged with Bribery ConspiracyRead the Press Release
McALLEN, Texas - Three Texas men, including a former Weslaco City Commissioner and a former Hidalgo County Commissioner, were arrested today on charges of conspiracy to commit honest services wire fraud and conspiracy to commit money laundering.
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 the IRS Criminal Investigation (CI) Houston Field office.
Criminal complaints were filed today in the Southern District of Texas against former Weslaco City Commissioner John Cuellar, 56, of Weslaco, and former Hidalgo County Commissioner Arturo Cuellar Jr., 65, of Hidalgo County. They are charged with conspiring to bribe a Weslaco City Commissioner in exchange for official actions favorable to three engineering companies and conspiracy to commit money laundering. Daniel Garcia, 40, an attorney based in Rio Grande City, was also charged with conspiracy to commit money laundering.
According to the complaint, starting in approximately March 2008, Cuellar agreed to accept bribes from three engineering companies that were funneled through Cuellar Jr. and others. Cuellar and another Weslaco City Commissioner would then allegedly take actions favorable to the three companies in relation to contracts to rehabilitate and rebuild Weslaco’s water treatment facilities.
According to the complaint, from approximately April 2008 through December 2015, Lopez received approximately $3.7 million from two engineering companies and shared approximately $1,398,000 with Cuellar Jr. The complaint further alleges 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 complaint further alleges 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.
FBI and IRS-CI conducted the investigation. Assistant U.S. Attorney Roberto Lopez is prosecuting the case along with Trial Attorneys Peter M. Nothstein and Jessica C. Harvey of the Criminal Division’s Public Integrity Section.
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Three Texas Men Arrested and Charged with Bribery ConspiracyRead the Press Release
Three Texas men, including a former Weslaco City Commissioner and a former Hidalgo County Commissioner, were arrested today on charges of conspiracy to commit honest services wire fraud and conspiracy to commit money laundering.
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.
Criminal complaints were filed today in the Southern District of Texas against former Weslaco City Commissioner John Cuellar, 56, of Weslaco, Texas, and former Hidalgo County Commissioner Arturo Cuellar Jr., 65, of Hidalgo County, Texas. They are charged with conspiring to bribe a Weslaco City Commissioner in exchange for official actions favorable to three engineering companies and conspiracy to commit money laundering. Daniel Garcia, 40, an attorney based in Rio Grande City, Texas, was also charged with conspiracy to commit money laundering.
According to the complaint, starting in approximately March 2008, Cuellar agreed to accept bribes from three engineering companies that were funneled through Cuellar Jr. and others. Cuellar and another Weslaco City Commissioner would then allegedly take actions favorable to the three companies in relation to contracts to rehabilitate and rebuild Weslaco’s water treatment facilities.
According to the complaint, from approximately April 2008 through December 2015, Lopez received approximately $3.7 million from two engineering companies, and shared approximately $1.398 million with Cuellar Jr. The complaint 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 complaint 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 (IOLTA) account.
A complaint 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 of the Southern District of Texas are prosecuting the case.
Illegal Alien Sex Offender Sentenced for Returning to the United States after DeportationRead the Press Release
CORPUS CHRISTI, Texas – A 33-year old Guatemalan citizen has been ordered to federal prison following his conviction for illegally re-entering the United States after deportation, announced U.S. Attorney Ryan K. Patrick. Edward Estuardo Jacinto-Garcia pleaded guilty Nov. 27, 2018.
Today, Senior U.S. District Judge Hilda Tagle sentenced Jacinto-Garcia to 72 months in federal prison. At the hearing, the court considered that prior to Jacinto-Garcia’s first deportation from the United States, he had been convicted of sexual assault and had previously been convicted of illegally re-entering the country and failing to register as a sex offender. In handing down the sentence, Judge Tagle noted that it was appropriate given the seriousness of the offense and to protect the public. Jacinto-Garcia was on supervised release at the time of the new offense. Judge Tagle revoked that term and ordered he serve an additional two months to be served consecutively.
On Oct. 14, 2018, Border Patrol (BP) agents encountered a group of seven undocumented aliens in the brush near U.S. Highway 281 who had attempted to circumvent the immigration checkpoint near Falfurrias. At the time of the arrests, agents determined Jacinto-Garcia was a citizen and national of Guatemala who had previously been deported from the United States and had re-entered without permission.
In custody since his arrest, Jacinto-Garcia will remain in federal custody pending transfer to a U.S. Bureau of Prisons facility
BP conducted the investigation. Assistant U.S. Attorney Lance Watt is prosecuting the case.
Former Administrator of Two Houston Home Health Companies Sentenced to Prison in $20 Million Medicare Fraud SchemeRead the Press Release
The former Director of Nursing and Administration of two Houston, Texas-based businesses was sentenced today to 10 years in prison for her role in a $20 million Medicare fraud scheme involving false and fraudulent claims for home health services.
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, Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office and Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services-Office of Inspector General’s (HHS-OIG) Dallas Region made the announcement.
Evelyn Mokwuah, 54, of Pearland, Texas, former Director of Nursing and Administration of Beechwood Home Health (Beechwood) and Criseven Health Management Corporation (Criseven), both located in Houston, was sentenced by U.S. District Judge Gray H. Miller of the Southern District of Texas. Judge Miller also ordered Mokwuah to pay $20,462,607.21 in restitution to Medicare. On Aug. 10, 2017, following a four-day trial, a jury found Mokwuah guilty of one count of conspiracy to commit health care fraud and four counts of health care fraud.
According to evidence presented at trial, from 2008 to 2016, Mokwuah and others engaged in a scheme to defraud Medicare of approximately $20 million including the submission of fraudulent claims for home health services at Beechwood and Criseven that were not provided, not medically necessary or both. According to the trial evidence, Mokwuah falsely certified and billed for patients who were not homebound or did not qualify for home health services. Along with others, Mokwuah also falsified patient records to show that patients were homebound when they were not; paid patient recruiters to recruit Medicare beneficiaries to Beechwood and Criseven; and paid doctors to certify false plans of care for Medicare beneficiaries so that Beechwood and Criseven could bill Medicare for those services.
The case was investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Texas. The case is being prosecuted by Trial Attorneys Scott Armstrong and Kevin Lowell of the Fraud Section.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Undocumented Alien Sentenced for Illegally Re-entering the U.S….AgainRead the Press Release
BROWNSVILLE, Texas – A 38-year-old undocumented alien from Mexico is headed to federal prison following his conviction of illegal re-entry into the country after a previous deportation, announced U.S. Attorney Ryan K. Patrick. Rodolfo Casares pleaded guilty Jan. 3, 2019.
Today, U.S. District Judge Rolando Olvera ordered him to serve a 60-month term of imprisonment. Not a U.S. citizen, Casares is expected to face deportation proceedings following the sentence. At the hearing, additional evidence was also provided that included Casares’ prior convictions.
On Sept. 21, 2018, Custom and Border Protection (CBP) agents encountered Casares as they were conducting Linewatch operations near Hidalgo.
Upon investigation, law enforcement discovered he was illegally present in the United States. Casares was first deported to Mexico in October 2005 after having been convicted of possession of cocaine with intent to deliver in October 2005 and in April 2015. He also has a another conviction of illegal re-entry after having been found in the country again on May 14, 2018. Casares was last deported in August 2018.
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.
CBP conducted the investigation. Assistant U.S. Attorney David Coronado is prosecuting the case.
Former Congressional Staffer Sentenced to Prison for Extensive Fraud and Election Crimes SchemeRead the Press Release
HOUSTON - A former congressional staffer was sentenced today for participating in a multi-year scheme to defraud charitable donors of hundreds of thousands of dollars. He also secretly funneled the proceeds to pay for personal expenses and illegally finance campaigns for federal office.
U.S. Attorney Ryan K. Patrick made the announcement along with Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Assistant Director in Charge Nancy McNamara of FBI’s Washington Field Office and Acting Special Agent in Charge Sarah Kull of IRS - Criminal Investigation (CI) Houston Field Office.
Jason T. Posey, 48, of Tupelo, Mississippi, pleaded guilty Oct. 11, 2017, to one count of mail fraud, one count of wire fraud and one count of money laundering. Today, Chief U.S. District Judge Lee H. Rosenthal of the Southern District of Texas sentenced Posey to 18 months in prison to be immediately followed by three years of supervised release. Posey was also ordered to pay $564,718.65 in restitution and $156,855.29 in forfeiture.
As part of his plea, Posey admitted he participated in a scheme that former U.S. Representative Stephen E. Stockman, 62, led. A federal jury in Houston convicted Stockman April 12, 2018, of 23 counts of mail fraud, wire fraud, conspiracy to make conduit contributions and false statements to the Federal Election Commission (FEC), making false statements to the FEC, making excessive coordinated campaign contributions, money laundering and filing a false tax return. Another of Stockman’s former congressional staffers, Thomas Dodd, 40, of Houston, pleaded guilty March 20, 2017, to one count of conspiracy to commit mail and wire fraud and one count of conspiracy to make conduit contributions and false statements. On Dec. 12, 2018, Judge Rosenthal sentenced Dodd to serve 18 months in prison followed by three years of supervised release and ordered him to pay $800,000 in restitution,
According to Posey’s admissions in connection with his guilty plea, from January 2013 to February 2014, he assisted Stockman in fraudulently soliciting $800,571.65 in donations from charitable organizations and the individuals who ran those organizations based on false pretenses. He then used a series of sham nonprofit organizations and dozens of bank accounts to launder the money before he spent it on a variety of personal and campaign expenses.
Specifically, Posey admitted that shortly after Stockman took office as a member of the U.S. House of Representatives in 2013, Stockman and Dodd used the name of one sham nonprofit entity, Life Without Limits, to solicit and receive a $350,000 charitable donation. The money was to be used to create an educational center called the Freedom House. Stockman, Dodd and Posey instead used this donation for a variety of personal and campaign expenses, including illegal conduit campaign contributions, and payments for hundreds of thousands of robocalls and mailings promoting Stockman’s candidacy for U.S. Senate in early 2014.
In addition, Posey admitted that, in connection with Stockman’s Senate campaign, Stockman and Posey used another sham nonprofit entity called Center for the American Future to secure a $450,571.65 donation. They used that money to fund a purportedly legitimate independent expenditure promoting Stockman’s candidacy. Posey admitted Stockman secretly controlled the purportedly independent expenditure and directed his campaign and Posey to file false affidavits with the FEC covering up Stockman’s involvement.
In addition, Posey admitted that during the early stages of the investigation, Stockman directed Posey to flee to Cairo, Egypt, for nearly three years so law enforcement could not question him.
The FBI and IRS-CI conducted the investigation. Assistant U.S. Attorney Melissa Annis is prosecuting the case along with Deputy Chief Robert J. Heberle and Trial Attorney Ryan J. Ellersick of the Criminal Division’s Public Integrity Section.
Former Congressional Staffer Sentenced to Prison for Extensive Fraud and Election Crimes SchemeRead the Press Release
A former congressional staffer was sentenced today to 18 months in prison followed by three years of supervised release and ordered to pay $564,718.65 in restitution and $156,855.29 in forfeiture, for participating in a multi-year scheme to defraud charitable donors of hundreds of thousands of dollars and secretly funnel the proceeds to pay for personal expenses and illegally finance campaigns for federal office.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ryan K. Patrick of the Southern District of Texas, Assistant Director in Charge Nancy McNamara of FBI’s Washington Field Office and Acting Special Agent in Charge Sarah Kull of IRS - Criminal Investigation (CI) Houston Field Office made the announcement.
Jason T. Posey, 48, of Tupelo, Mississippi, was sentenced in the U.S. District Court for the Southern District of Texas by Chief U.S. District Judge Lee H. Rosenthal. Posey pleaded guilty on Oct. 11, 2017, to one count of mail fraud, one count of wire fraud and one count of money laundering. As part of his plea, Posey admitted that he participated in a scheme led by former U.S. Representative Stephen E. Stockman, 62, who was convicted by a federal jury in Houston on April 12, 2018, of 23 counts of mail fraud, wire fraud, conspiracy to make conduit contributions and false statements to the Federal Election Commission (FEC), making false statements to the FEC, making excessive coordinated campaign contributions, money laundering and filing a false tax return. Another of Stockman’s former congressional staffers, Thomas Dodd, 40, of Houston, Texas, pleaded guilty on March 20, 2017, to one count of conspiracy to commit mail and wire fraud and one count of conspiracy to make conduit contributions and false statements. On Dec. 12, 2018, Dodd was sentenced to serve 18 months in prison and ordered to pay $800,000 in restitution, to be followed by three years of supervised release.
According to the admissions made by Posey in connection with his guilty plea, from January 2013 to February 2014, Posey assisted Stockman in fraudulently soliciting $800,571.65 in donations from charitable organizations and the individuals who ran those organizations based on false pretenses, then using a series of sham nonprofit organizations and dozens of bank accounts to launder the money before it was spent on a variety of personal and campaign expenses.
Specifically, Posey admitted that shortly after Stockman took office as a member of the U.S. House of Representatives in 2013, Stockman and Dodd used the name of one sham nonprofit entity, Life Without Limits, to solicit and receive a $350,000 charitable donation, to be used to create an educational center called the Freedom House. Stockman, Dodd, and Posey instead used this donation for a variety of personal and campaign expenses, including illegal conduit campaign contributions, and payments for hundreds of thousands of robocalls and mailings promoting Stockman’s candidacy for U.S. Senate in early 2014.
In addition, Posey admitted that, in connection with Stockman’s Senate campaign, Stockman and Posey used another sham nonprofit entity called Center for the American Future to secure a $450,571.65 donation in order to fund a purportedly legitimate independent expenditure promoting Stockman’s candidacy. Posey admitted that the purportedly independent expenditure was in fact secretly controlled by Stockman, who directed his campaign and Posey to file false affidavits with the FEC covering up Stockman’s involvement.
In addition, Posey admitted that during the early stages of the investigation, Stockman directed Posey to flee to Cairo, Egypt, for two and a half years so that Posey could not be questioned by law enforcement.
The FBI and IRS-CI investigated the case. Deputy Chief Robert J. Heberle and Trial Attorney Ryan J. Ellersick of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Melissa Annis of the Southern District of Texas prosecuted the case.
Lake Jackson Area Attorney Sentenced in Scheme to Commit Bank FraudRead the Press Release
HOUSTON ‐A 65-year-old resident of Lake Jackson has been ordered to federal prison for his role in a mortgage fraud scheme, announced U.S. Attorney Ryan K. Patrick. Kirk Lawrence Brannan pleaded guilty to bank fraud April 30, 2018, admitting he conspired with others from 2005 to 2009 to execute a scheme to defraud Wells Fargo Bank and other lenders.
Today, Chief U.S. District Judge Lee Rosenthal handed him a 36-month sentence to be immediately followed by three years of supervised release. At the hearing, the court held that, in committing the crime, Brannan had used sophisticated means and had employed his special skills as an attorney and real estate agent. Judge Rosenthal noted that Brannan had created false HUD-1 settlement forms and title documents that purported to show the sale of three of his properties to his children at grossly inflated prices. These HUD-1 forms then became the three comparable sales that appraisers relied upon in over-valuing the rest of Brannan’s beach home properties which Brannan then sold through the fraud scheme at inflated prices.
In imposing the sentence, Judge Rosenthal balanced Brannan’s honorable military service and other aspects of what, up to the time of the fraud, had been an exemplary life, with the tremendous damage mortgage fraud had done to the U.S. financial system and economy and the fact that Brannan had been a knowing and willing participant in such a scheme. She also pointed out that some individuals much less sophisticated than Brannan had suffered severe economic harm as a result of Brannan’s scheme.
He was further ordered to pay $5,317,350 in restitution. A money judgement was previously entered in the amount of $2,401,368.
Brannan sold 10 beach homes in the Freeport/Surfside area to “straw buyers” at exorbitant prices. Other co-conspirators recruited straw buyers who created loan applications with misrepresentations that lenders relied upon in deciding to make the mortgage loans. The applications contained misrepresentations of the buyer’s address, employer, income and expenses. The applications also suggested the buyers were much better credit risks than they actually were. Brannan admitted he paid kickbacks to co-conspirators each time one of the beach homes was sold to a straw buyer.
The beach properties were sold at two to three times the appraised values. The mortgage lenders, including Wells Fargo Bank, were induced to lend the inflated amounts for the purchases through flawed or fraudulent appraisals which were based on comparisons Brannan manufactured to further the scheme.
Brannan created settlement statements that suggested he sold three of his properties to his children at exorbitant prices. Appraisers relied upon these “sales” as comparable sales in appraising Brannan’s remaining properties sold to straw buyers. As a result of the fraudulent appraisals, he and his co-conspirators were able to inflate the values for his properties and deceive the lenders into approving home loans at those exorbitant amounts.
All of the straw buyers defaulted on the mortgages, and all 10 of the beach properties ended up in foreclosure.
The fraudulent mortgage loan scheme resulted in a loss of $5,317,350 to Wells Fargo Bank and the other lenders. Brannan paid $2,401,368 to his co-conspirators as part of the scheme.
Previously released on bond, Brannan was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
Co-conspirators Chucoboie Lanier, 42, David Lee Morris, 56, and Derwin Jerome Blackshear, 52, all of Houston, previously pleaded guilty for their roles in the scheme. Lanier received a sentenced of 36 months while Morris was ordered to serve a 42-month prison term. Blackshear is set for sentencing April 9.
The Texas Department of Public Safety and the FBI conducted the investigation. Assistant U.S. Attorneys Robert Johnson and Michael Day are prosecuting the case.
Texas Man Arrested and Charged with Bribery ConspiracyRead the Press Release
McALLEN, Texas - A Weslaco man has been arrested on charges of conspiracy to commit bribery and other offenses in connection with a scheme to bribe a city commissioner in exchange for government contracts.
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 Field Office and Acting Special Agent in Charge Sarah Kull of the IRS-Criminal Investigation (CI) Houston Field office.
An 18-count indictment filed in the Southern District of Texas and unsealed upon his arrest yesterday charges Richard Quintanilla, 51, with conspiring to bribe and bribing a Weslaco City Commissioner in exchange for official actions favorable to three engineering companies. According to the indictment, from approximately August 2011 through December 2016, the companies supplied Quintanilla with approximately $85,950 which was funneled through a co-conspirator. Quintanilla allegedly kept a portion of these payments and paid the remainder to a city commissioner. In exchange for these bribe payments, the indictment alleges that the city commissioner used his official position to benefit the companies, including by voting to authorize multi-million dollar contracts for water treatment facilities in the City of Weslaco. Quintanilla will appear before U.S. Magistrate Judge Peter E. Ormsby today at 11:00 a.m.
The FBI and IRS-CI conducted the investigation. Assistant U.S. Attorney Roberto Lopez 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.Texas Man Arrested and Charged with Bribery ConspiracyRead the Press Release
A Weslaco, Texas man has been arrested on charges of conspiracy to commit bribery and other offenses in connection with a scheme to bribe a city commissioner in exchange for government contracts.
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 Field Office and Acting Special Agent in Charge Sarah Kull of the IRS Criminal Investigation (CI) Houston Field office, made the announcement.
An 18-count indictment filed in the Southern District of Texas and unsealed upon his arrest yesterday charges Richard Quintanilla, 51, with conspiring to bribe and bribing a Weslaco City Commissioner in exchange for official actions favorable to three engineering companies. According to the indictment, from approximately August 2011 through December 2016, the companies supplied Quintanilla with approximately $85,950, which was funneled through a co-conspirator. Quintanilla allegedly kept a portion of these payments and paid the remainder to a city commissioner. In exchange for these bribe payments, the indictment alleges that the city commissioner used his official position to benefit the companies, including by voting to authorize multi-million dollar contracts for water treatment facilities in the City of Weslaco. Quintanilla will appear before U.S. Magistrate Judge Peter E. Ormsby at 11:00 a.m. CT today.
An indictment contains only allegations. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The 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 of the Southern District of Texas are prosecuting the case.
Kansas Man Sentenced to Nearly 18 Years in Prison for Use of Child Pornography in Southeast Asia with Intent to Import into the United StatesRead the Press Release
A retired Kansas native, who was residing in Panama, was sentenced today to 210 months in prison, for use of sexually explicit depictions of a minor for importation into the United States, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Ryan K. Patrick of the Southern District of Texas.
Jebediah Dishman, 72, of Fredonia, Kansas, pleaded guilty on April 6, 2018, to an information charging him with use of sexually explicit depictions of a minor for importation into the United States. Today, U.S. District Judge Ewing Werlein Jr. of the Southern District of Texas imposed the nearly 18-year sentence to be followed by 25 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. At the hearing today, he was also ordered to pay a $5,000 fine and $3,000 in restitution. Dishman will also be ordered to register as a sex offender.
According to admissions made in conjunction with a plea agreement, in September 2014, Dishman began an approximately six-month trip to several countries in Southeast Asia. During his trip to Indonesia, another tourist observed Dishman engaging in suspicious interactions with minors, masturbating while watching minors and using a tablet to take photographs of a three-year-old German child. The tourist confronted Dishman, seized his tablet and turned it over to local authorities. U.S. law enforcement later reviewed the tablet pursuant to a search warrant and discovered sexually explicit images of minors, including the German child, as well as internet searches indicating an interest in the sex trafficking of minors in Southeast Asia.
The FBI Houston Field Office conducted the investigation with the cooperation of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. Trial Attorneys James E. Burke IV and William M. Grady of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Sherri Zack of the Southern District of Texas prosecuted the case. Assistant U.S. Attorney Elly Peirson of the Central District of Illinois, previously on detail at CEOS, also served as a vital member of the prosecution team at earlier stages of the litigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Kansas Man Sentenced in Texas for Use of Child Pornography in Southeast Asia with Intent to Import into the U.S.Read the Press Release
HOUSTON - A retired Kansas native who was residing in Panama has been ordered to serve a 210-month prison term, announced U.S. Attorney Ryan K. Patrick and Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division.
Jebediah Dishman, 72, of Fredonia, Kansas, pleaded guilty April 6, 2018, to an information charging him with use of sexually explicit depictions of a minor for importation into the United States. Today, U.S. District Judge Ewing Werlein Jr. of the Southern District of Texas imposed the nearly 18-year sentence to be followed by 25 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. At the hearing today, he was further ordered to pay a $5,000 fine and $3,000 in restitution. Dishman will also be ordered to register as a sex offender.
According to admissions made in conjunction with a plea agreement, in September 2014, Dishman began an approximately six-month trip to several countries in Southeast Asia. During his trip to Indonesia, another tourist observed Dishman engaging in suspicious interactions with minors, masturbating while watching minors and using a tablet to take photographs of a three-year-old German child. The tourist confronted Dishman, seized his tablet and turned it over to local authorities. U.S. law enforcement later reviewed the tablet pursuant to a search warrant and discovered sexually explicit images of minors, including the German child, as well as internet searches indicating an interest in the sex trafficking of minors in Southeast Asia.
The FBI conducted the investigation with the cooperation of Immigration and Customs Enforcement’s Homeland Security Investigations. Assistant U.S. Attorney (AUSA) Sherri Zack is prosecuting the case along with Trial Attorneys James E. Burke IV and William M. Grady of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). and of the Southern District of Texas prosecuted the case. AUSA Elly Peirson of the Central District of Illinois, previously on detail at CEOS, also served as a vital member of the prosecution team at earlier stages of the litigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Jury Convicts Crew in Murder of Armored Car GuardRead the Press Release
HOUSTON – A federal jury in Houston has just returned guilty verdicts on all counts as charged against four men involved in the murder of a Brinks armored car guard, among other charges, announced U.S. Attorney Ryan K. Patrick. The jury deliberated for approximately eight hours following a nine-day trial before convicting Nelson Alexander Polk, 40, Marc Anthony Hill, 48, John Edward Scott, 43, and Bennie Charles Phillips Jr., 31, all of Houston.
All four were convicted of attempted interference with commerce by robbery and aiding and abetting discharge of a firearm during a crime of violence. The jury also convicted Hill and Polk of aiding and abetting interference with commerce by robbery and aiding and abetting discharge of a firearm during a crime of violence causing the death of another.
The trial centered on the robbery and murder of a Brinks armored car guard on Aug. 29, 2016, at Wells Fargo Bank located at 13120 Northwest Freeway as well as the attempted robbery of a Loomis armored car guard at Amegy Bank located at 400 N Sam Houston Pkwy E on Dec. 7, 2016.
At trial, the jury heard that a now-deceased individual had allegedly led the robbery crew, which would conduct extensive surveillance of banks’ ATMs and armored car routes before executing the robberies. According to testimony, the plan involved the leader lying in wait for the guard to begin service of the ATM. He would then shoot the guard from a distance with a high caliber rifle so another member of the robbery crew could pull up and take the money.
The jury heard that in the August robbery and murder, the leader of the crew allegedly shot and killed the guard. Polk then drove a vehicle up to the guard, at which time another crew member got out and took the Brinks’ bag of money. Hill had been in the area conducting surveillance.
The men played the same roles in December Amegy robbery attempt. The jury heard that law enforcement watched and listened to calls over the leader’s phone as they prepared to rob the Loomis guard. He and Hill spent hours and took shifts surveilling the bank. On the date of the attempted robbery, the crew leader sat across from the ATM in an apartment complex parking lot ready to take his shot.
When law enforcement moved in to arrest the subjects, the crew leader allegedly came out firing his weapon and police responded, killing him.
On that day, Polk and Trayvees Duncan Bush, 31, also of Houston, sat ready to drive up to the slain guard to steal the money. Phillips recruited Bush and ensured he would be ready on the morning of Dec. 7. Hill was nearby conducting surveillance and would meet up with Polk and Bush to provide them a different getaway vehicle. Scott was further away from the Amegy bank doing surveillance and watching for the armored truck to approach the location.
The jury also heard dozens of wiretap calls as the defendants planned the attempted robbery of the armored truck, which they frequently referred to as commissary or Bentley. They saw video and heard audio from a recording device placed in the Jeep Cherokee the crew leader had allegedly stolen for purposes of the crime. The jury was able to watch and hear as he set up his rifle shot from the back seat and placed mylar over the driver side window to avoid deflecting the bullet.
Testimony also included a cell site location expert who tracked phone locations of the crew leader, Hill and Polk in the weeks leading up to the August murder and robbery. He was able to show how Hill and Polk played similar roles, surveilling the bank and being near the bank during the time of the murder and robbery.
The defense claimed the deceased crew leader planned the whole thing and they had no knowledge of his intentions. Further, Polk and Hill argued that they were not there during the August robbery and murder. The jury was not convinced and convicted them on all counts as charged.
All of the defendants convicted today face up to 20 years for the robbery and another 10-year-minimum and up to life for the firearms charge which must be served consecutively to any other prison term imposed. Hill and Polk face the same terms for the additional charges for which they were convicted.
U.S. District Judge Hittner presided over the trial.
They will remain in custody pending their sentencing.
Bush had pleaded guilty prior to trial.
The FBI, Houston Police Department and ATF conducted the investigation. Assistant U.S. Attorneys Heather Winter and Richard Hanes are prosecuting the case.
The case is an example of coordination between law enforcement who are part of the Houston Law Enforcement Violent Crime Initiative. The goal is to proactively fight and reduce violent crime across the Greater Houston area by targeting the region’s most violent offenders, augmenting investigative and prosecutorial efforts, and enhancing training, public awareness and education.
They were brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.
Truck Driver Guilty of Threatening to Assault Five BP AgentsRead the Press Release
CORPUS CHRISTI, Texas – A 49-year-old Weslaco man has entered a guilty plea to one count of threatening to assault a federal law enforcement officer while engaged in the performance of official duties, announced U.S. Attorney Ryan K. Patrick.
On Dec. 20, 2018, Daniel Campos Jr. entered the primary inspection lane of the U.S. Border Patrol Checkpoint located near Falfurrias driving a tractor trailer. While there, Border Patrol (BP) agents attempted to question him, at which time Campos became hostile, argumentative and refused to answer questions.
During this exchange, a BP canine alerted to the vehicle. As a result, authorities directed Campos to secondary inspection for further processing. While attempting to get him to proceed there, Campos yelled, cursed and refused to comply with the agents request. Campos eventually relented and proceeded to secondary inspection.
At secondary, he continued to yell, shouting, homophobic remarks and threatened five BP agents. Specifically, he threatened to kick the BP canine in the nose, said he would engage in inappropriate conduct with the agents’ mothers and threatened to harm the agents if he saw them outside of their uniforms.
At today’s hearing, Campos admitted he threatened the agents, acknowledging he did so in order to intimidate, impede and interfere with the agents’ investigation. He also confirmed the threat occurred as a result of the agents performing their official duties as BP agents.
U.S. District Judge Nelva Gonzales Ramos accepted the plea and set sentencing for June 27, 2019. At that time, Campos faces up to six years in federal prison and possible $250,000 maximum fine.
Campos will remain in custody pending that hearing.
The FBI conducted the investigation. Assistant U.S. Attorney Jeremy C. Fugate is prosecuting the case.
Three Houston Men Charged in Various Houston Violent CrimesRead the Press Release
HOUSTON – A federal grand jury has returned two separate indictments charging a total of three men in two armed crime sprees of Houston-area commercial businesses, announced U.S. Attorney Ryan K. Patrick. In one instance, two juveniles working at a Subway restaurant were robbed at gunpoint. The cases are being investigated and prosecuted as part of the recently announced Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Crime Gun Strike Force.
Devante Blackmon, 19, is set to make his initial appearance before U.S. Magistrate Judge Frances H. Stacy at 10:00 a.m. today. He is charged in the armed robbery of a local Dollar Tree store along with Stafford Polk, 22. Polk is considered a fugitive and a warrant remains outstanding for his arrest.
Blackmon and Polk are charged with armed robbery and using firearms in during crimes of violence.
Both are charged with Feb. 22, 2019, armed robbery of the Dollar tree store located at 5360 West 34th Street, in Houston. The defendants allegedly pointed a gun at several store employees and stole money before fleeing as the police arrived.
Blackmon is charged with two additional robberies of local cell phone stores. On May 20, 2018, Blackmon allegedly confronted a store employee who was working at the Metro PCS store located at 7303 Breen Drive in Houston. The indictment alleges Blackmon brandished the weapon and robbed the employee of money and cellular phones at gunpoint. On June 15, 2018, Blackmon also allegedly committed the armed robbery of the Boost Mobile store located at 12151 Northwest Freeway in Houston. Again, Blackmon allegedly brandished his gun and stole money and cellular phones at gunpoint.
In a separate, but similar case, Russell Pittman aka Randon Booth, 26, of Houston, allegedly committed three separate armed robberies of commercial businesses, including robberies of a Subway restaurant and two cell phone stores, during which he stole U.S. currency and cellular phones before fleeing.
On Feb. 15, 2018, Pittman allegedly confronted two juveniles who were working at the Subway restaurant located at 10086 Long Point Road in Houston. The indictment alleges Pittman brandished the weapon and robbed the employees of money at gunpoint.
The indictment alleges Pittman committed another armed robbery of the Boost Mobile store located at 2323 South Kirkwood in Houston. Again. He brandished his gun and stole money and cellular phones at gunpoint, according to the charges. Less than a month later, he allegedly also robbed the Cell Phone Zone located at 7111 Harwin Drive in Houston. During that robbery, Pittman pointed the gun at several store employees and stole money and cellular phones, the charges allege.
Pittman appeared in federal court March 18, 2019, at which time Judge Stacy ordered be held in custody pending further criminal proceedings.
Pittman and Blackmon are bot charged with three counts of interference with commerce by robbery and three counts of using and brandishing a firearm during and in relation to a crime of violence. Polk is charged with one count each of the same crimes.
If convicted, the defendants faces up to 20 years in federal prison for the robbery charges. The firearm offenses alleged in the robberies carry a mandatory minimum term of seven years to life for each offense, which must run consecutively to any other sentence imposed. Each conviction also carries the possibility of a $250,000 maximum fine.
ATF and Houston Police Department conducted both investigations, now part of the ATF Crime Gun Strike Force. Assistant U.S. Attorney Steve Mellin is prosecuting the cases.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Texas Man in Custody on Charges of Tax EvasionRead the Press Release
VICTORIA, Texas – A grand jury has returned a 12-count indictment against a local man, alleging multiple counts of tax evasion and illegally structuring financial transactions for the purpose of evading reporting requirements, announced U.S. Attorney Ryan K. Patrick.
Corey Campbell Boucher surrendered to federal agents without incident this morning. He is expected to make his initial appearance before U.S. Magistrate Judge B. Janice Ellington at 2:00 today.
The indictment includes five counts of making a false material statement on his individual income tax returns for tax years 2012 - 2016. For each of those years Boucher allegedly knew he had received significantly more income than the amount stated in his U.S. Individual Income Tax Return.
The indictment also charges Boucher with seven counts of structuring financial transactions for the purpose of evading reporting requirements. On seven occasions between Sept. 16, 2014, and Aug. 17, 2016, Boucher allegedly broke up large cash deposits into multiple smaller deposits conducted on the same day for the purpose of evading federal reporting requirements, according to the charges.
If convicted, Boucher faces up to three years in federal prison for each count of tax evasion and a maximum of five years for each count of structuring. Each of the charges also carry a possible $250,00 maximum possible fine.
IRS – Criminal Investigation conducted the investigation. Assistant U.S. Attorney Robert D. Thorpe Jr. is prosecuting the case.
An indictment or information is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.ABT Gang Member and Another Convicted for Transporting AliensRead the Press Release
CORPUS CHRISTI, Texas – Two members of a smuggling conspiracy have entered guilty pleas to their part in transporting illegal aliens in the trunk of a Ford 500 through the Sarita Border Patrol (BP) Checkpoint, announced U.S. Attorney Ryan K. Patrick.
Cody Michael Matousek, 33, of Texas City, and Guadalupe Levario, 38, of Galveston, admitted they conspired to transport illegal aliens on March 27, 2019. Law enforcement has identified Matousek as an affiliate of the Aryan Brotherhood.
On Feb. 6, 2019, a tow truck driver reported that he had been hired to haul a broken down Ford 500 through the checkpoint from Armstrong to an auto parts store in Kingsville. When picking up the vehicle on the shoulder of Highway 77, the tow truck driver observed a tan medium-sized SUV parked behind the Ford 500. At the checkpoint, the driver told agents he felt suspicious about the vehicle he was hauling because the driver refused to provide the keys.
During the inspection, a BP K-9 alerted to the trunk of the Ford 500. Upon opening the trunk, agents observed two individuals from Brazil who admitted to being illegally present in the United States.
Law enforcement had the driver drop off the Ford 500 in Kingsville to the individual who hired him.
Authorities conducted surveillance at the auto parts store in Kingsville and observed the tan medium-sized SUV. Levario exited the SUV and directed where the truck was to be parked. He then paid the driver, at which time he was placed under arrest. Also taken into custody was Matousek, who was driving the SUV.
Matousek had been the subject of an investigation involved with a human smuggling organization affiliated with the Aryan Brotherhood of Texas (ABT) out of Galveston.
Located inside the SUV, authorities discovered numerous iPhones, a backpack and jackets which the undocumented aliens later identified as their property.
The two Brazilians claimed Matousek picked them up somewhere near Mission and transported them to a stash house. The next day, Matousek picked them up and brought them to a motel where he explained the process for them to be smuggled past the checkpoint. There, they also met Levario who told them he would be the one smuggling them past the checkpoint.
The next morning, Levario transported them in a Ford 500. He stopped at an abandoned house south of the checkpoint and put both Brazilians in the trunk of the Ford 500.
Sentencing has been set for July 3, 2019, before U.S. District Judge Nelva Gonzales Ramos. At that time, Matousek and Levario face up to 10 years imprisonment and a $250,000 maximum possible fine.
Matousek will remain in custody, while Levario was permitted to remain on bond pending that hearing.
Immigration and Customs Enforcement’s Homeland Security Investigations, BP, U.S. Marshals Service and the Kingsville Police Department all assisted in the joint investigation. Assistant U.S. Attorney Sara Popejoy is prosecuting the case.
Four Set to Appear on Charges Related to Deadly Robbery SpreeRead the Press Release
HOUSTON – A federal grand jury has returned an indictment against four Houston men for robbery and using firearms during the crimes of violence, announced U.S. Attorney Ryan K. Patrick. During one of the alleged offenses, an elderly employee was shot and killed.
Those charged include Melvin Jones, 20, Daivion Gully, 18, Deanjelo Wells, 19, and Artavius Johnson, 29, all of Houston. Previously in state custody on related charges, all were transferred to federal custody and are set to make their initial appearances this morning at 10:00 a.m. before U.S. Magistrate Judge Frances H. Stacy. A federal grand jury returned the indictment March 14, 2019.
The indictment alleges four separate robberies of local convenience stores, during which the defendants stole U.S. currency before fleeing.
On Nov. 3, 2018, Jones, Gully, Wells and Johnson allegedly robbed the Sunny Food Mart at gunpoint on 9075 South Dairy Ashford in Houston. During the violent crime, two suspects discharged their firearms several times, killing a 66-year old store clerk.
The following month, the indictment alleges Jones and Wells committed two more armed robberies, both on Oct. 24, 2018. The first occurred at the Chevron station at 8265 Richmond Avenue, according to the charges. Less than two hours later, they allegedly targeted Gulf Gas located on 3300 Yellow Stone. The indictment further alleges Gully and Wells had robbed the same Gulf Gas convenience store at gunpoint just a month prior - on Sept. 26, 2018.
All four defendants were captured and arrested Nov. 7, 2018.
They are all charged with aiding and abetting interference with commerce by robbery and aiding and abetting use, brandishing and discharging a firearm during and in relation to a crime of violence.
If convicted, the men face up to 20 years in federal prison for the robbery charges. The firearm offense alleged in the robbery of the Sunny Food Mart, which resulted in death, carries a mandatory minimum of 10 years up to life in federal prison, or the possibility of death which must run consecutively to any other sentence imposed. The remaining firearms charges carry a mandatory and consecutive minimum of seven years up to life imprisonment. Each conviction also carries the possibility of a $250,000 fine.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and Houston Police Department conducted the investigation as part of the recently announced Crime Gun Strike Force. Assistant U.S. Attorneys Carrie Wirsing and Jill J. Stotts are prosecuting the case.
The indictment is an example of coordination between law enforcement who are part of the Houston Law Enforcement Violent Crime Initiative. The goal is to proactively fight and reduce violent crime across the Greater Houston area by targeting the region’s most violent offenders, augmenting investigative and prosecutorial efforts, and enhancing training, public awareness and education.
The cases are brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Missouri City Man Sentenced for Having Trafficked a 12-year-old Girl for SexRead the Press Release
HOUSTON – A 33-year-old Missouri City man has been ordered to prison for sex trafficking of a minor female, announced U.S. Attorney Ryan K. Patrick. Eddie Charles Larue pleaded guilty Oct. 11, 2018, to one count of sex trafficking.
Today, U.S. District Judge Sim Lake sentenced LaRue to 180 months in federal prison. Additional information was also presented today, including a letter read by the child victim detailing her disappointment, fear and bouts of crying when she thinks about what happened to her. Larue 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. Larue will also be ordered to register as a sex offender.
At the time of his plea, Larue admitted that from July 3-4, 2017, he recruited a 12-year-old girl to engage in commercial sex acts for money along the 1.3 mile stretch of Bissonnet St., commonly referred to as “The Track.” He also admitted he used force and threats of force to compel his victim into prostitution and collected all of the money she earned.
The Human Trafficking Rescue Alliance (HTRA) conducted the investigation. HTRA law enforcement includes members of the FBI, Immigration and Customs Enforcement’s Homeland Security Investigations, Houston Police Department, sheriff’s offices in Harris and Montgomery counties, Texas Alcoholic and Beverage Commission, Texas Attorney General’s Office, Department of State, Department of Labor, IRS-Criminal Investigation and the Texas Department of Public Safety.
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 Sebastian Edwards and Jill Stotts are prosecuting the case.
RGV Man Sentenced for Medicare Fraud SchemeRead the Press Release
McALLEN, Texas ‐ A former account representative for a toxicology testing company has been ordered to prison in connection with a scheme to defraud Medicare, announced U.S. Attorney Ryan K. Patrick.
Ivar Cantu, 47, of Palmview, pleaded guilty Dec. 19, 2017, to conspiring to commit health care fraud.
Today, U.S. District Judge Alvarez imposed a 56-month sentence for Cantu, to be immediately followed by three years of supervised release.
Cantu fraudulently set up an account between a medical clinic where a co-conspirator was employed as a laboratory technician and the toxicology testing company for whom Cantu was an account representative. During the latter half of 2015, Cantu and his co-conspirators misappropriated patient identities and urine specimens from the medical clinic. They then sent them to the toxicology testing company without consent of the patient or doctor in order to receive commissions and collection fees from the testing company. In order to carry out the scheme, Cantu and his co-conspirators forged patient signatures, falsified medical records and created fictitious documents.
As a result of the scheme, Medicare was billed $836,788 between May 2015 and December 2015.
Cantu was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI, Department of Health and Human Services‐Office of Inspector General and Texas Health and Human Services Commission conducted the investigation. Assistant U.S. Attorney Andrew Swartz is prosecuting the case.
Dozens Arrested in Major Law Enforcement OperationRead the Press Release
HOUSTON - A total of 47 people are now in custody following the return of a 43-count indictment alleging drug-trafficking and related crimes in the Houston and Galveston areas. The case will be prosecuted in the Galveston Division of the Southern District of Texas.
U.S. Attorney Ryan K. Patrick made the announcement along with Drug Enforcement Administration (DEA) Special Agent in Charge Will R. Glaspy, Special Agent in Charge Mark Dawson of Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Chief Vernon Hale of the Galveston Police Department (GPD), Special Agent in Charge Designee Brett Rovey of Internal Revenue Service - Criminal Investigation (CI) and Deputy U.S. Marshal Alfredo Perez of the U.S. Marshals Service (USMS).
The arrests are the culmination of 31-month Organized Crime Drug Enforcement Task Force investigation (OCDETF) dubbed Operation Wrecking Ball.
“This operation is the result of countless hours of hard work by officers and agents from many different agencies,” said Patrick. “OCDETF is uniquely able to marshal resources for complex cases. The Department of Justice is committed to disrupting the work of international cartels and other drug trafficking organizations. This case also is reinvigorating my office’s commitment to Galveston. For the first time in decades, we have a full time prosecutor on the island who is focused on cases that will have a local impact in Brazoria, Chambers, Galveston and Matagorda counties.”
During the law enforcement operation today and yesterday that spanned multiple jurisdictions and states, authorities took a total of 43 people into custody. They join the four individuals who were previously in custody. Nine are considered fugitives and warrants remain outstanding for their arrests.
“Today’s enforcement operation marks the culmination of a 3 ½ year investigation targeting one of the largest suspected drug organizations seen in Southeast Texas in decades,” said Glaspy. “The success of this investigation was possible only because of the many law enforcement agencies dedicated to protecting our communities in the greater Houston/Galveston area from those who prey on them.”
The indictment, which was returned in November 2018 and unsealed today, alleges the defendants engaged in a variety of cocaine and heroin transactions. Some also allegedly conspired to commit money laundering and illegally transferred money to avoid reporting requirements.
The charges allege the crimes occurred between Feb. l, 2016, and April 19, 2018. According to the indictment, the drugs were smuggled into the United States from Colombia and Mexico. Heroin and Cocaine was then distributed through Houston to Atlanta, Georgia; Buffalo and New York, N.Y.; Miami, Florida; New Orleans, Louisiana; and Norfolk, Virginia.
This case is a clear example of the kind of federal matters we are bringing to the Galveston Division
The indictment also seeks forfeiture of any illegal proceeds of the alleged crimes. To date, approximately $3.1 million has been seized.
Those arrested are expected to make initial appearances before U.S. Magistrate Judge Andrew Edison in Houston beginning at 10:00 a.m. March 21, 2019.
The DEA conducted the investigation along with HSI, Houston Police Department, IRS-CI, USMS, GPD and Galveston County Sheriff’s Office with assistance of the Texas National Guard Joint Counterdrug Task Force. 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 convicted through due process of law.Texas Resident Heads to Prison for Using a Firearm to Rob Local WhataburgerRead the Press Release
CORPUS CHRISTI, Texas – A 22-year-old Beaumont resident has been ordered to federal prison following his conviction for robbery and brandishing a firearm during a crime of violence, announced U.S. Attorney Ryan K. Patrick. Dveaunta Montez Hall pleaded guilty Dec. 17, 2018.
Today, Senior U.S. District Judge John D. Rainey sentenced Hall to 100 months in federal prison - 16 months for the robbery offense as well as a 84-month consecutive term for brandishing a firearm during a crime of violence. The prison term will be immediately followed by five years of supervised release.
On March 14, 2018, the Corpus Christi Police Department (CCPD) responded to an aggravated robbery at the Whataburger located in the 4100 block of South Staples. Hall had entered the business and pointed an assault rifle at employees and customers inside while demanding money from the register. The male then fled the location on foot.
Shortly thereafter, responding officers located Hall, who still had the assault rifle in his possession, near the location. During the investigation, officers discovered Hall had stolen the assault rifle from a nearby apartment shortly before committing the robbery.
Hall will remain in federal custody pending transfer to a U.S. Bureau of Prisons facility.
CCPD and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney Lance Watt is prosecuting the case.
Chinese National Who Threatened to Shoot School Children Sentenced to PrisonRead the Press Release
HOUSTON - A 23-year-old Chinese national who resided in La Marque has been ordered to federal prison after admitting to possessing a firearm while being an illegal alien and aggravated identity theft, announced U.S. Attorney Ryan K. Patrick along with Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Special Agent in Charge Mark Dawson and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Fred Milanowski.
Xiangyu Zhang pleaded guilty Dec. 14, 2018.
Today, U.S. District Judge Gray Miller handed him a total 61-month sentence - 37 months for the firearms conviction and a mandatory and consecutive 24 months for the identity theft. Not a U.S. citizen, he is expected to face deportation proceedings following the sentence. At the hearing, Judge Miller noted his concern with Zhang’s actions and felt a prison term at the higher end of the guidelines was appropriate.
Zhang remained in the United States two years after his visa expired. He came to law enforcement’s attention in July 2018 when he entered an internet chat session on the Department of Veteran’s Affairs (VA) Crisis Line and threated to kill school children by using firearms. Zhang is a not a U.S. veteran.
Law enforcement arrested him at a gas station located close to his residence. At that time, he was sitting in a vehicle in possession of two firearms, including an AM-15 rifle. Both firearms had rounds in the chamber.
Upon Zhang’s arrest, law enforcement also found a passport belonging to a woman who lived in the Dallas area. Zhang had stolen the woman’s purse containing the passport in August 2017 after he served as her Uber driver. Within hours of stealing her purse, Zhang, while using the woman’s identity without her permission, attempted to purchase several high end items online from Apple.
Law enforcement also found a picture of a fake U.S. passport page with Zhang’s picture and the woman’s passport number on Zhang’s phone.
A few months after stealing the purse, Zhang defrauded Bank of America in March 2018 for more than $11,000. In late June 2018, and a few days before making those threats on the VA chat line, Zhang stole an IRS refund check from his neighbor’s mailbox and deposited it into his bank account.
He has been and will remain in custody pending that hearing.
HSI and ATF conducted the investigation. Assistant U.S. Attorney Alamdar Hamdani is prosecuting the case.
Ex-Bank Vice President Convicted of Bank Embezzlement/FraudRead the Press Release
BROWNSVILLE, Texas – A 69-year-old permanent legal resident from Mexico living in Brownsville has entered pleas of guilty to theft/embezzlement of bank funds, theft of funds by a bank employee and aggravated identity theft, announced U.S. Attorney Ryan K. Patrick.
Maria de Los Angeles Caballero aka Angie Caballero pleaded guilty today before U.S. District Judge Rolando Rivera.
From about November 2010 to July 2017, while employed as vice-president at Texas Community Bank in Brownsville, Caballero withdrew funds from two customer accounts without authorization. From one account, she ordered and obtained blank checks on which she then proceeded to forge the customer’s signature, fill out amounts and deposit the checks into a Wells Fargo account under the names of two of her relatives.
Authorities discovered 24 checks Caballero forged in this manner. Additionally, Caballero ordered and signed two cashier’s checks which she then deposited into her relatives’ account at Wells Fargo Bank.
The total amount she embezzled from the two accounts was proved to be $1,516,391.57.
Judge Olvera accepted the pleas and set sentencing for June 12, 2019. At that time, Caballero faces up to 30 years in of imprisonment as well as a $1 million fine. The identity theft also carries a mandatory 24 months which must be served consecutively to any other term imposed.
She was permitted to remain on bond pending that hearing.
The government will seek to obtain restitution on behalf of the two bank customers to recover the embezzled amount.
The FBI conducted the investigation. Assistant U.S. Attorney Oscar Ponce is prosecuting the case.
"Wing Stop Robbery Crew" Sentenced for Roles in Multiple Armed Crimes Committed Within Two WeeksRead the Press Release
HOUSTON - Five area men have been ordered to prison for their roles in a string of Houston-area armed robberies, including one in which someone was almost killed, announced U.S. Attorney Ryan K. Patrick.
Reshaun Lee Jenkins, 25, James Daniel Henderson, 24, Ashton Armstrong, 24, Cedric L. Andrews, 44, and Bradley Alexander, 28, had all previously pleaded guilty for their crimes as did Tadarius Robinson, 23, and Joseph Adams, 34, both also of Houston, and Mik Yia Shua Faye Durden, 22, of Livingston, and Travescy Cauley, 27, of Beaumont.
Today, U.S. District Judge Gray Miller imposed a total of 255 months in prison for Henderson. He was ordered to serve 51 months for the robberies in addition to another 204 months, which includes 120 months for discharging a firearm during the Wing Stop robbery and 84 months for brandishing a firearm during the robbery of an El Mexsal Taqueria robbery. The sentence for the firearm convictions must be served consecutively to each other and the sentence imposed for the robberies, resulting in the more than 21-year-sentence.
In imposing the massive term of imprisonment, the court noted Henderson had been the shooter in the Wing Stop robbery at 10749 North Freeway on Oct. 2, 2015, during which time an employee was almost killed.
Jenkins and Armstrong were both ordered to serve a total of 141 months, while Andrews and Alexander received a total of 33, and 147 months, respectively. As part of their sentences, Jenkins, Armstrong and Alexander were each required to serve 84 months consecutive to the sentences they received for the robberies for brandishing a firearm during the robberies to which they pleaded guilty.
Adams had previously received a 36-month term of imprisonment. Robinson, Durden and Cauley are still pending sentencing.
Robinson, Alexander and Armstrong committed an armed robbery of a T-Mobile store located at 10730 Eastex Freeway on Sept. 27, 2015. Armstrong had entered the store brandishing a firearm, while Robinson and Alexander waited in the getaway vehicle. U.S. currency and cellular phones were taken.
Three days later, Jenkins, Henderson, Armstrong, Durden and Alexander robbed the El Mexsal Taqueria located at 5797 North Sam Houston. Henderson, Cauley and Armstrong ordered the employees and customers to the ground at gunpoint, while Durden and Jenkins drove getaway cars. Alexander acted as a lookout during the robbery.
Robinson, Jenkins, Adams, Henderson, Andrews and Alexander then committed the armed robbery at the Wing Stop restaurant located at 10749 North Freeway on Oct. 2, 2015. Henderson entered the store with a gun drawn. When an did not immediately get down on the ground, Henderson shot him, causing permanent bodily injuries. Andrews and Adams were inside the restaurant during the robbery, while Robinson, Alexander and Jenkins sat outside acting as lookouts and the getaway driver. Alexander disassembled the firearm after the shooting and threw pieces out of the car window as they fled the scene.
Finally, Armstrong, Durden and Alexander then robbed Movie Magic at 6520 Airline on Oct. 9, 2015. Armstrong robbed the store at gunpoint. As they fled the scene and Durden drove the getaway car, Alexander fired his gun at a civilian who was chasing the robbers. Armstrong attempted to fire at the civilian but his gun jammed.
The case is an example of coordination between law enforcement who are part of the Houston Law Enforcement Violent Crime Initiative. The goal is to proactively fight and reduce violent crime across the Greater Houston area by targeting the region’s most violent offenders, augmenting investigative and prosecutorial efforts, and enhancing training, public awareness and education.
The cases are brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.
The Bureau of Alcohol, Tobacco and Firearms conducted the investigation in conjunction with the Houston Police Department and Harris County Sheriff’s Office. Assistant U.S. Attorneys Richard Hanes and Heather Winter are prosecuting the case.
Robstown Man Receives Significant Sentence for Child Pornography ConvictionRead the Press Release
CORPUS CHRISTI – A 22-year-old resident of Robstown has been ordered to prison following his conviction of distributing child pornography, announced U.S. Attorney Ryan K. Patrick. Trey Escareno pleaded guilty Nov. 29, 2018.
Today, Senior U.S. District Judge Janis Graham Jack sentenced Escareno to 170 months in prison. The sentence will be immediately followed by a lifetime term of supervised release, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. Escareno will also be ordered to register as a sex offender.
The investigation into Escareno began when an undercover FBI agent entered an online chatroom and observed a user, later identified as Escareno, posting links. He had posted several items, all of which would automatically download large amounts of child pornography onto the computer of the user who clicked on them.
Agents later executed a search warrant in Robstown on Escareno’s residence. That resulted in the discovery of several items, including a cellular telephone on which a forensic analysis identified numerous images of child pornography. Law enforcement also uncovered evidence that Escareno had engaged in sexual contact with a minor relative.
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 conducted the investigation with the assistance of the Corpus Christi Police Department - Internet Crimes Against Children Task Force.
Assistant U.S. Attorney Brittany L. Jensen 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 or internet safety education, please visit the DOJ website.
Justice Department Reaches Agreement with Harris County, Texas, to Ensure Polling Place Accessibility for Voters with DisabilitiesRead the Press Release
The Justice Department today reached an agreement with Harris County, Texas, to resolve its lawsuit in the Southern District of Texas alleging that Harris County violated Title II of the Americans with Disabilities Act (ADA) by failing to provide an accessible voting program to voters with disabilities, including accessible polling places. Harris County’s voting program—the third largest in the country—includes over 750 polling places. The Justice Department’s complaint alleges that many polling places in Harris County have architectural barriers—such as steep ramps, gaps in sidewalks and walkways, and locked gates along the route barring pedestrian access—that make them inaccessible to voters with mobility and vision disabilities.
“Every eligible voter with a disability must have an equal opportunity to vote in person at his or her local polling place,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “This fundamental right secures participation in our democracy and it must not be diminished or restricted by barriers to access.”
“The announcement today demonstrates my office’s continued commitment to enforcing all federal civil rights laws, including the ADA,” said U.S. Attorney Ryan K. Patrick. “I commend Harris County for its decision to enter into this agreement in order to achieve our shared goal of making polling places accessible to all eligible voters.”
Under the agreement, Harris County will create and implement policies, practices, and procedures to bring its voting program into compliance with the ADA. These policies, practices and procedures include: creating an effective system for selecting accessible facilities for polling places; surveying polling place facilities to identify accessibility barriers; procuring and implementing temporary accessibility remedies, such as mats or ramps, during elections; and providing effective curbside voting. Harris County will also conduct accessibility surveys of nearly two-thirds of its polling places. In addition, Harris County will hire subject matter experts to provide technical assistance and training to the County’s staff, vendors, and election officials on how to provide accessible polling places, as well as to provide reports to the parties on the County’s progress in complying with the agreement.
This settlement is part of the Department’s ADA Voting Initiative, which focuses on protecting the voting rights of individuals with disabilities. A hallmark of the ADA Voting Initiative is its collaboration with jurisdictions to increase accessibility at polling places. Through this Initiative, the Department has surveyed more than 1,600 polling places and increased polling place accessibility in more than 35 jurisdictions, including Chicago, Illinois; Hidalgo County, Texas; Cumberland County, Pennsylvania; and Coconino County, Arizona.
Those interested in finding out more about this settlement or the ADA may call the Justice Department’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD), or access its ADA website at www.ada.gov. ADA complaints may be filed online at http://www.ada.gov/complaint/.
Justice Department Reaches Agreement with Harris County to Ensure Polling Place Accessibility for Voters with DisabilitiesRead the Press Release
HOUSTON – The Justice Department today reached an agreement with Harris County to resolve its lawsuit alleging that Harris County violated Title II of the Americans with Disabilities Act (ADA) by failing to provide an accessible voting program to voters with disabilities, including accessible polling places. Harris County’s voting program - the third largest in the country - includes over 750 polling places. The Justice Department’s complaint alleges that many polling places in Harris County have architectural barriers - such as steep ramps, gaps in sidewalks and walkways and locked gates along the route barring pedestrian access - that make them inaccessible to voters with mobility and vision disabilities.
“Every eligible voter with a disability must have an equal opportunity to vote in person at his or her local polling place,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “This fundamental right secures participation in our democracy and it must not be diminished or restricted by barriers to access.”
“The announcement today demonstrates my office’s continued commitment to enforcing all federal civil rights laws, including the ADA,” said U.S. Attorney Ryan K. Patrick. “I commend Harris County for its decision to enter into this agreement in order to achieve our shared goal of making polling places accessible to all eligible voters.”
Under the agreement, Harris County will create and implement policies, practices and procedures to bring its voting program into compliance with the ADA. These policies, practices and procedures include: creating an effective system for selecting accessible facilities for polling places; surveying polling place facilities to identify accessibility barriers; procuring and implementing temporary accessibility remedies, such as mats or ramps, during elections; and providing effective curbside voting. Harris County will also conduct accessibility surveys of nearly two-thirds of its polling places. In addition, Harris County will hire subject matter experts to provide technical assistance and training to the County’s staff, vendors and election officials on how to provide accessible polling places, as well as to provide reports to the parties on the County’s progress in complying with the agreement.
This settlement is part of the Department’s ADA Voting Initiative, which focuses on protecting the voting rights of individuals with disabilities. A hallmark of the ADA Voting Initiative is its collaboration with jurisdictions to increase accessibility at polling places. Through this Initiative, the Department has surveyed more than 1,600 polling places and increased polling place accessibility in more than 35 jurisdictions, including Chicago, Illinois; Hidalgo County, Texas; Cumberland County, Pennsylvania; and Coconino County, Arizona.
Those interested in finding out more about this settlement or the ADA may call the Justice Department’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD), or access its ADA website at www.ada.gov. ADA complaints may be filed online at http://www.ada.gov/complaint/.
Convicted Felon Handed Federal Prison Term for Illegal Firearms ChargeRead the Press Release
CORPUS CHRISTI, Texas – A 31-year-old Corpus Christi resident has been ordered to federal prison following his conviction for being a previously convicted felon in possession of a firearm and ammunition, announced U.S. Attorney Ryan K. Patrick. Ricardo Diego Garza pleaded guilty Nov. 29, 2018.
Today, Senior U.S. District Judge Janis Graham Jack sentenced Garza to 110 months in custody to be immediately followed by three years of supervised release. In handing down the sentence, the court noted that each of the previous sentences of incarceration had not deterred the defendant’s criminal conduct.
On April 14, 2018, law enforcement responded to a disturbance with a weapon at a business located in the 5800 block of Weber in Corpus Christi. Witnesses had reported a male in a white vehicle had pointed a black handgun with an extended magazine at another individual at that location.
Upon arrival, officers approached Garza who was attempting to exit the driver’s seat of the vehicle, at which time officers observed and seized a .40 caliber semi-automatic handgun containing an extended magazine loaded with 21 rounds of ammunition.
Garza was previously convicted of multiple felony offenses and, therefore, is prohibited from possessing firearms and ammunition per federal law.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Corpus Christi Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney Lance Watt is prosecuting the case.
Local Man Sentenced for Fraud and ID TheftRead the Press Release
HOUSTON – A Houston man has been ordered to prison following his convictions of theft of government money and aggravated identity theft, announced U.S. Attorney Ryan K. Patrick along with Special Agent in Charge D. Richard Goss of IRS – Criminal Investigation (CI).
Eric W. King, 49, of Houston, and Theresa K. Goffney, 46, of Rosharon, pleaded guilty May 29 and July 9, 2018, respectively. The court found the defendants submitted a total of 179 fraudulent tax returns requesting refunds in the amount of $888,261.
Today, U.S. District Judge Nancy F. Atlas imposed a 65-month total sentence for King – 41 months for the conspiracy and a consecutive 24 months for the identity theft. He was further ordered to serve three years of supervised release following his sentence and must pay $29,264 in restitution.
Co-defendant Goffney will be sentenced Friday, March 15.
The defendants admitted they unlawfully acquired the personal identifying information (PII) of others such as name, date of birth, Social Security number and address. They then used the unlawfully acquired PII to file fraudulent tax returns in the victims’ names.
The fraudulent tax returns requested the IRS refund to be directed to bank accounts the conspirators opened and controlled, checks mailed to addresses conspirators controlled or be loaded onto prepaid debit cards they had purchased.
King was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
IRS – CI conducted the investigation. Assistant U.S. Attorney Jay Hileman is prosecuting the case.
Former Border Patrol Agent Sentenced to More Than Nine Years in Prison for Accepting Bribes to Facilitate the Trafficking of Illegal DrugsRead the Press Release
A former U.S. Border Patrol Agent (BPA) was sentenced to 112 months in prison followed by three years of supervised release for accepting bribes in return for helping to smuggle illegal drugs into the United States.
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 Perrye Turner of the FBI’s Houston Field Office and Special Agent in Charge Juan Benavides of U.S. Customs and Border Protection (CBP) Office of Professional Responsibility (OPR) made the announcement.
Robert Hall, 45, of La Feria, Texas, a former BPA, was sentenced by U.S. District Judge Ewing Werlein Jr. of the Southern District of Texas, who also ordered Hall to pay a fine in the amount of $20,000. Hall pleaded guilty to one count of bribery on Sept. 14, 2018, which was unsealed today.
According to the plea documents, between 2004 and 2014, Hall, working with others including Daniel Hernandez, 46, of Roseville, California, facilitated the trafficking of illegal drugs, including marijuana, into the United States from Mexico on behalf of a drug trafficking organization (DTO). In exchange for cash payments, he provided an individual in the DTO with CBP sensor locations, the locations of unpatrolled roads at or near the U.S.-Mexico border, the number of BPAs working in a certain area, keys to unlock CBP locks located on gates to ranch fences along the border and CBP radios. In total, Hall accepted over $50,000 in cash from the DTO in exchange for using his position as a BPA to enable the DTO’s drug shipments to cross the border into Texas without law enforcement detection.
Daniel Hernandez pleaded guilty Feb. 5 to one count of conspiracy to bribe a public official before U.S. Magistrate Judge Nancy K. Johnson in the Southern District of Texas. Sentencing has been scheduled for May 9, before U.S. District Judge Gray H. Miller, who accepted the plea on Feb. 8.
The FBI investigated the case with the assistance of CBP OPR. Trial Attorneys Rebecca Moses and Peter M. Nothstein of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Julie N. Searle of the Southern District of Texas are prosecuting the case.
Former Border Patrol Agent Sentenced for Accepting Bribes to Facilitate the Trafficking of Illegal DrugsRead the Press Release
HOUSTON - A former U.S. Border Patrol (BP) agent was sentenced to 114 months in prison followed by three years of supervised release for accepting bribes in return for helping to smuggle illegal drugs into the United States.
U.S. Attorney Ryan K. Patrick, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Special Agent in Charge Perrye Turner of the FBI’s Houston Field Office and Special Agent in Charge Juan Benavides of U.S. Customs and Border Protection (CBP) Office of Professional Responsibility (OPR) made the announcement.
Former BP agent Robert Hall, 45, of La Feria, pleaded guilty Sept. 14, 2018. Today, U.S. District Judge Ewing Werlein Jr. imposed the sentence and further ordered Hall to pay a $20,000 fine.
According to the plea documents, between 2004 and 2014, Hall, working with others including Daniel Hernandez, 46, of Roseville, California, facilitated the trafficking of illegal drugs, including marijuana, into the United States from Mexico on behalf of a drug trafficking organization (DTO). In exchange for cash payments, he provided an individual in the DTO with CBP sensor locations, the locations of unpatrolled roads at or near the U.S.-Mexico border, the number of BP agents working in a certain area, keys to unlock CBP locks located on gates to ranch fences along the border and CBP radios. In total, Hall accepted over $50,000 in cash from the DTO in exchange for using his position as a BP agent to enable the DTO’s drug shipments to cross the border into Texas without law enforcement detection.
Daniel Hernandez pleaded guilty Feb. 5 to one count of conspiracy to bribe a public official before U.S. Magistrate Judge Nancy K. Johnson in the Southern District of Texas. Sentencing has been scheduled for May 9, before U.S. District Judge Gray H. Miller, who accepted the plea on Feb. 8.
The FBI investigated the case with the assistance of CBP - OPR. Assistant U.S. Attorney Julie N. Searle and Trial Attorneys Rebecca Moses and Peter M. Nothstein of the Criminal Division’s Public Integrity Section are prosecuting the case.
McAllen Woman Pleads Guilty to Multi-Million Dollar Kickback ConspiracyRead the Press Release
McALLEN, Texas – A local pharmacy marketer entered a guilty plea in connection with her role in a multi-million dollar illegal kickback conspiracy involving a pharmacy in the Rio Grande Valley and doctors throughout Texas, announced U.S. Attorney Ryan K. Patrick.
Victoria Renee Guerra, 35, a licensed pharmacist of McAllen, entered her guilty plea before U.S. District Judge Micaela Alvarez this morning.
At the hearing, Guerra admitted that as part of her role as a purported marketer, she recruited physicians to write prescriptions for expensive compound drugs to be filled by Pharmacy A and for which the pharmacy would bill federal health care programs.
During an approximately two-year period starting in late 2014, the owner of Pharmacy A paid Guerra approximately $7.5 million in return for compound drug prescriptions written by physicians Guerra recruited. In turn, Guerra paid a cut of the payments from Pharmacy A to the prescribing physicians. For example, Guerra admitted she paid approximately $2.1 million in kickbacks to one of the physicians sending prescriptions to Pharmacy A, identified in the Criminal Information as “Doctor 1.”
During the conspiracy, pharmacy A submitted claims totaling approximately $42.2 million to the U.S. Department of Labor, Office of Workers Compensation Program, for prescriptions that doctor 1 wrote for beneficiaries of the Federal Employee’s Compensation Act.
Guerra pleaded guilty to conspiracy to violate the federal anti-kickback statute, which prohibits the payment of kickbacks to induce physicians to write prescriptions for which payment may be made in whole or in part under a federal health care benefit program. At sentencing, which is scheduled for May 29, 2019, Guerra faces up to five years in federal prison and a possible $25,000 maximum fine.
She was permitted to remain on bond pending that hearing.
The U.S. Postal Service – Office of Inspector General (OIG), Department of Labor – OIG, FBI, Veterans Affairs – OIG, Defense Criminal Investigative Service and the Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorney Andrew Swartz is prosecuting the case.
Jury Convicts Former OfficerRead the Press Release
McALLEN, Texas – A 45-year-old former sergeant with the Progresso Police Department has been convicted of two counts of aiding and abetting the attempt to possess with intent to distribute more than five kilograms of cocaine, announced U.S. Attorney Ryan K. Patrick. The jury deliberated for three hours before convicting Giovanni Hernandez, of Weslaco, following a four-day trial.
Hernandez had been a sergeant with the Progreso Police Department. The jury heard that from March through August 2017, a confidential source met with Hernandez seeking assistance for a drug trafficking organization. The meetings culminated in Hernandez agreeing to scout for law enforcement to enable a vehicle he believed contained a controlled substance to pass through the Progreso area undetected.
At trial, the jury heard recordings between the informant and Hernandez discussing scouting for the drug load. The government presented evidence that once the drug load made it successfully through Progreso on July 15, 2017, Hernandez gave the informant his Progreso police badge.
The defense attempted to attack the credibility of the witnesses and denied any of Hernandez’s knowledge of the drug trafficking scheme or his attempt to participate in it. The jury was not convinced and convicted him on all counts as charged.
Hernandez had been previously released on bond but was remanded to custody after the verdict where he will remain pending his sentencing hearing, set for May 22, 2019. At that time, he faces a minimum of 10 years in federal prison as well as a possible $10 million maximum fine.
Immigration and Customs Enforcement’s Homeland Security Investigations, Drug Enforcement Administration and IRS - Criminal Investigations conducted the Organized Crime Drug Enforcement Task Force Investigation which was dubbed Operation Blue Shame. Assistant U.S. Attorneys (AUSA) James H. Sturgis and Kristen J. Rees are prosecuting this case. AUSA Anibal Alaniz is prosecuting the related drug trafficking case.
Houston Woman Sentenced for Conspiring to Commit $50 Million Health Care Fraud and Money LaunderingRead the Press Release
HOUSTON – A 36-year-old Houston woman has been ordered to pay more than $15 million in restitution following her conviction of conspiring to commit $50 million health care fraud as well laundering money, announced U.S. Attorney Ryan K. Patrick. A jury convicted Daniela Gozes-Wagner in September 2017.
Today. U.S. District Judge David Hittner ordered Gozes-Wagner to serve a total of 240 months imprisonment to be immediately followed by three years of supervised release. She was further ordered to pay restitution of $15,283,985. At the hearing, the court noted Gozes-Wagner had “wreaked havoc” on the health care system of the United States.
Beginning in 2009, Gozes-Wagner conspired with others to falsely bill Medicare and Medicaid for millions of dollars of medical tests which were either not performed or were medically unnecessary.
Most of these tests supposedly occurred at 28 testing facilities over many years. However, when law enforcement conducted law enforcement operations there, they discovered that many of the facilities were actually empty offices.
To prevent Medicare from learning about the scheme, Gozes-Wagner hired “seat warmers” – young women paid to sit and answer phones in the nearly empty offices that comprised many of the “testing facilities.” They believed they could spend most of their time watching streaming movies. However, when Medicare investigators tried to inspect the empty offices, these “seat warmers” were instructed to notify Gozes-Wagner and prevent the investigators from inspecting the offices.
The conspirators also hid the true owners of the testing facilities by placing them in the names of other people.
The FBI, Texas Attorney General’s Medicaid Fraud Control Unit and the Department of Health and Human Services conducted the investigation with the assistance of the Office of Personnel Management and Railroad Retirement Board. Assistant U.S. Attorneys Michael Chu, Jim McAlister and Jason Smith prosecuted the case.
Two RGV Residents Indicted for Health Care FraudRead the Press Release
McALLEN, Texas – Two Rio Grande Valley residents have been taken into custody for submitting fraudulent claims for payment to Texas Medicaid for durable medical equipment (DME) supplies that were never delivered to Medicaid beneficiaries, announced U.S. Attorney Ryan K. Patrick.
A federal grand jury in McAllen returned the indictment Feb. 26, 2019, against Everardo Villarreal, 46, of Edinburg, and Delilah Rae Robles, 38, of Weslaco. It was unsealed today as they were taken into custody. They are expected to make initial appearances before U.S. Magistrate Judge Scott Hacker on Friday, March 1, 2019.
According to the indictment, Villarreal was the owner and operator of now defunct Durable Medical Supply Depot of Elsa. Robles was his secretary and Medicaid biller.
The indictment alleges they committed one count of conspiracy to commit health care fraud, four counts of substantive health care fraud as well as two counts of aggravated identity theft of local Medicaid beneficiaries’ personal Medicaid numbers.
From on or about April 2010 to on or about September 2014, Villarreal and Robles allegedly billed Texas Medicaid in excess of $850,000 for DME that was either never delivered or was only partially delivered to Medicaid beneficiaries. The indictment alleges Villarreal and Robles purchased or arranged for the purchase of personal Medicaid identification numbers of local Medicaid beneficiaries in order to submit false and fraudulent claims to Medicaid for items that were never intended to be delivered.
Each of the counts of health care fraud related matters carries a maximum of 10 years in federal prison. If convicted of identity theft, they each also face a mandatory two years imprisonment which must be served consecutively to any other sentence imposed. All of the charges also carry a $250,000 maximum possible fine.
The Texas Attorney General’s Medicaid Fraud Control Unit, Department of Health and Human Services – Office of Inspector General and the FBI conducted the investigation. Special Assistant U.S. Attorney Marian Swanberg and Assistant U.S. Attorney Andrew Swartz 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.
Fugitive Sought in Violent Crime SpreeRead the Press Release
CORPUS CHRISTI, Texas – A federal grand jury in Corpus Christi has returned an indictment against two local men for multiple felonies, including carjacking and weapons charges, announced U.S. Attorney Ryan K. Patrick.
The six-count indictment was returned today against Carlos Moreno, 25, and Leonard Reyna, 24, both of Corpus Christi. They are charged with robbery, carjacking, brandishing a firearm during a crime of violence, discharging a firearm during a crime of violence each for being previously convicted felons in possession of firearms.
Reyna was already in custody on the charges and is expected to make his initial appearance before a U.S. magistrate judge in the near future. Moreno is considered a fugitive and a warrant remains outstanding for his arrest. Anyone with information about his whereabouts is asked to contact the U.S. Marshals service at 1-800-336-0102.
According to the allegations, on Aug. 26, 2018, the Corpus Christi Police Department (CCPD) responded to an aggravated robbery at the Corpus Christi Trade Center located in the 2800 block of South Padre Island Drive. Upon arrival, officers discovered that a group of males had allegedly approached a local jewelry store displaying handguns and demanded several items of jewelry. The men then fled on foot out the back alley of the location, according to the criminal complaint, originally filed on the case. At the scene, officers allegedly recovered several rounds of 9mm and .45 caliber ammunition and a set of keys belonging to a nearby vehicle.
Court documents further allege that as officers continued to investigate, CCPD received another call, this time involving a shooting at the Stripes convenience store located in the 6000 block of Ayers. When officers responded to that location, they found a victim laying inside the store, according to the charges. He claimed he had been parked in his vehicle when two males approached and pointed a gun at him, demanding the keys to his truck. He refused. The charges allege that one of the men then fired, striking the victim in the left arm and stomach. The two males then allegedly fled the location.
Court records indicate that witnesses at the scene provided a physical description of the males that matched the suspects at the earlier Trade Center robbery.
If convicted of carjacking, both men face up to 25 years in federal prison, while the robbery carries up to 20 years of imprisonment. For being felons in possession of firearms, they could also receive a 10-year-maximum term of imprisonment. For brandishing and discharging a weapon during a crime of violence, the punishment is seven and 10 years minimum, respectively, which must be served consecutively to any other prison term imposed. In addition, each charge carries a possible fine of up to $250,000
CCPD and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney Lance Watt 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.
Two Businessmen Charged with Foreign Bribery in Connection with Venezuela Bribery SchemeRead the Press Release
A former sales representative and the president of a U.S.-based company were charged in an indictment unsealed today on foreign bribery, wire fraud and money laundering charges for their alleged roles in a scheme to corruptly secure business advantages, including contracts and payment on past due invoices, from Venezuela’s state-owned and state-controlled energy company, Petroleos de Venezuela S.A. (PDVSA).
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 and Special Agent in Charge Mark Dawson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Houston Field Office made the announcement.
Rafael Enrique Pinto Franceschi (Pinto), 40, of Miami, Florida, and Franz Herman Muller Huber (Muller), 68, of Weston, Florida, were charged in a five-count indictment returned in the Southern District of Texas on Feb. 21, and unsealed today. Pinto and Muller made their initial appearances today before U.S. Magistrate Judge Jonathan Goodman of the Southern District of Florida. Pinto and Muller are each charged with one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA), one count of conspiracy to commit wire fraud, two counts of wire fraud, and one count of conspiracy to launder money.
The indictment alleges that beginning in or around 2009 and continuing through at least 2013, Pinto, a sales representative for a Miami-based PDVSA supplier (“Company A” in the indictment), and Muller, the President of Company A, conspired with others to bribe three PDVSA officials in exchange for providing assistance in connection with Company A’s PDVSA business. According to the indictment, in exchange for bribe payments the PDVSA officials allegedly assisted Company A in obtaining additional PDVSA contracts, inside information and payment on past due invoices. The indictment alleges that when Company A received a payment from PDVSA, Pinto would alert one of the PDVSA officials who would, in turn, create a fictitious invoice from a Panamanian shell company charging Company A three percent of whatever payment Company A had received from PDVSA and directing Company A to send payment to a Swiss bank account. According to the charges, the false invoice would be sent to Muller, who would ensure that the invoices were paid.
The wire fraud charges against Pinto and Muller are based on allegations that, in addition to directing Company A money to the three PDVSA officials to benefit Company A, Pinto and Muller received kickbacks in connection with the scheme. In total, Pinto is alleged to have received over $985,000 in kickback payments, and Muller over $258,000.
Two of the three officials that Pinto and Muller are accused of bribing – Jose Camacho and Ivan Guedez, both of Houston – have already pleaded guilty in connection with the case and are pending sentencing.
An indictment is merely an allegation and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
With the unsealing of the indictment today, the Justice Department has announced charges against 21 individuals, 15 of whom have pleaded guilty, as part of a larger, ongoing investigation by the U.S. government into bribery at PDVSA. HSI Houston is conducting the ongoing investigation with assistance from HSI Boston and Miami. Trial Attorneys Sarah E. Edwards and Sonali D. Patel of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys John P. Pearson and Robert S. Johnson of the Southern District of Texas are prosecuting the case. Assistant U.S. Attorney Kristine Rollison of the Southern District of Texas is handling the forfeiture aspects of the case.
The Criminal Division’s Office of International Affairs, the Swiss Federal Office of Justice, and the Cayman Mutual Legal Assistance Authority and Cayman Office of the Director of Public Prosecution also provided assistance.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Two Businessman Charged with Foreign Bribery in Connection with Venezuela Bribery SchemeRead the Press Release
HOUSTON - A former sales representative and the president of a U.S.-based company surrendered to federal authorities yesterday for their alleged roles in a scheme to corruptly secure business advantages from Venezuela’s state-owned and state-controlled energy company, Petroleos de Venezuela S.A. (PDVSA). These business advantages included contract awards and payment on past due invoices.
U.S. Attorney Ryan K. Patrick, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Special Agent in Charge Mark Dawson of Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) made the announcement.
Rafael Enrique Pinto Franceschi (Pinto), 40, of Miami, Florida, and Franz Herman Muller Huber (Muller), 68, of Weston, Florida, were arrested in Miami on arrest warrants based on a five-count indictment returned in the Southern District of Texas (SDTX) on Feb. 21, and unsealed today. Pinto and Muller made their initial appearances today before U.S. Magistrate Judge Jonathan Goodman of the Southern District of Florida. Pinto and Muller are each charged with one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA), one count of conspiracy to commit wire fraud, two counts of wire fraud and one count of conspiracy to launder money.
According to the indictment, Pinto was a sales representative for a Miami-based PDVSA supplier (“Company A” in the indictment), while Muller was Company A’s president. The indictment alleges that beginning in or around 2009 and continuing through at least 2013, Pinto and Muller conspired with others to bribe three PDVSA officials in exchange for providing assistance in connection with Company A’s PDVSA business. In exchange for bribe payments, the PDVSA officials allegedly assisted Company A in obtaining additional PDVSA contracts, inside information and payment on past due invoices. The indictment alleges that when Company A received a payment from PDVSA, Pinto would alert one of the PDVSA officials who would, in turn, create a fictitious invoice from a Panamanian shell company. The invoices charged Company A three percent of whatever payment Company A had received from PDVSA and directed Company A to send payment to a Swiss bank account. According to the charges, the false invoice would be sent to Muller, who would ensure that the invoices were paid.
The wire fraud charges against Pinto and Muller are based on allegations that, in addition to bribing the three PDVSA officials, Pinto and Muller received kickbacks in connection with the scheme. In total, Pinto is alleged to have received more than $985,000 in kickback payments and Muller over $258,000.
Two of the three officials that Pinto and Muller are accused of bribing – Jose Camacho and Ivan Guedez, both of Houston - have already pleaded guilty in connection with the case and are pending sentencing.
With the unsealing of the indictment today, the Justice Department has announced charges against 21 individuals, 15 of whom have pleaded guilty, as part of a larger, ongoing U.S. government investigation into bribery at PDVSA. HSI Houston is conducting the ongoing investigation with assistance from HSI Boston and Miami. SDTX Assistant U.S. Attorneys (AUSA) John P. Pearson and Robert S. Johnson and Trial Attorneys Sarah E. Edwards and Sonali D. Patel of the Criminal Division’s Fraud Section are prosecuting the case. AUSA Kristine Rollison of the SDTX is handling the forfeiture aspects of the case.
The Criminal Division’s Office of International Affairs, the Swiss Federal Office of Justice, Cayman Mutual Legal Assistance Authority and Cayman Office of the Director of Public Prosecution also provided assistance.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
U.S. Attorney Warns of Potential Charges for Interfering with NTSB InvestigationRead the Press Release
HOUSTON – Anyone that knowingly removes, conceals or withholds a part of a civil aircraft involved in an accident could face civil penalties, criminal charges or both, announced U.S. Attorney Ryan K. Patrick.
According to the National Transportation Safety Board (NTSB), Atlas Air Flight 3591 left Miami at 11:30 a.m. Eastern time Saturday, Feb. 23, bound for Houston. At approximately 12:40 p.m., the twin-engine Boeing 767 cargo jetliner crashed into Trinity Bay near Anahuac.
The FBI has urged anyone with information, photos or videos regarding the incident or with knowledge of debris from the crash to call 1-800-CALL-FBI.
“It should be obvious to everyone, but do not pick up or remove pieces of the wreckage. It can interfere with the investigation and could lead to criminal charges,” said Patrick. “If you do come across debris on your property, please contact the FBI. Additionally, the NTSB and FBI have asked that area residents and businesses check security cameras for possible video of the crash.”
It is a federal crime to withhold part of a civil aircraft involved in an accident. If convicted of knowingly and without authority removing, concealing or withholding a part of such an aircraft, or property on the aircraft at the time of the accident could face up to 10 years in prison, if convicted. The charge could also carry a fine of up to $250,000.
The NTSB is leading the investigation with cooperation and assistance from FBI, Texas Parks and Wildlife, Texas Department of Public Safety, sheriff’s offices in Chambers and Harris Counties and the Houston Police Department, among others.
South Texas Father and Son Admit to Using Racehorses to Facilitate Drug TraffickingRead the Press Release
VICTORIA, Texas - Two members of a prolific transnational, transgenerational drug trafficking organization have pleaded guilty as their trial was set to begin in Victoria federal court, announced U.S. Attorney Ryan K. Patrick. Raul Beltran Jr., 50, and his son Edward Beltran, 24, both of Rio Grande City, pleaded guilty today as they were set to begin trial before U.S. District Judge John Rainey.
The Beltran men admitted to massive amounts of drug smuggling - thousands of kilograms of marijuana.
The investigation began in January 2013 after a Victoria County Sheriff’s Office deputy interdicted approximately 600 pounds of marijuana concealed in a horse trailer. The trailer also contained two racehorses.
That event prompted a lengthy, multiple-agency, multi-jurisdictional investigation that would ultimately uncover information and evidence demonstrating the illegal activities of the Beltran drug trafficking organization. The Beltrans used their horse ranches in Rio Grande City to receive, repackage and conceal thousands of kilograms of marijuana in horse trailers, flat-bed trailers and tractor trailers to ship the marijuana to all points north. They used the sport of horse racing to facilitate drug smuggling and to launder illicit proceeds.
The organization also utilized violence, intimidation, bribery and public corruption to facilitate and perpetuate their illicit activities for nearly a decade with virtual impunity. The investigation demonstrated the organization’s dealings with ranking members of the Gulf and Zeta Cartels, Starr County Chicano Brotherhood, as well as the involvement of multiple corrupt sworn peace officers assigned in the Rio Grande Valley.
A total of 22 people have now been convicted as a result of this investigation, including a former Starr County Sheriff’s Office deputy. In addition, authorities have seized three horse ranches as well as an American Quarter Horse race stallion named Jet Black Patriot and his breeding proceeds and awards.
The Beltran men were permitted to remain on bond pending their sentencing hearing, set for June 3, 2019. At that time, they each face up to life in federal prison and a possible $10 million maximum fine.
Immigration and Customs Enforcement’s Homeland Security Investigations, Texas Attorney General’s Office and the Victoria County Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Patti Hubert Booth is prosecuting the case.
Texas Doctor and Hospital Owner Convicted in $20 Million Healthcare Fraud SchemeRead the Press Release
HOUSTON – A federal jury has convicted a 50-year-old internal medicine doctor and 47-year-old hospital owner of conspiracy to commit health care fraud, 17 counts of health care fraud and three counts of money laundering, announced U.S. Attorney Ryan K. Patrick and Assistant Attorney General Brian A. Benczkowski of the Department of Justice’s Criminal Division. The jury deliberated for less than four hours following a two-week trial before convicting Dr. Harcharan Narang and Dayakar Moparty.
Narang, a doctor who owned and practiced at North Cypress Clinical Associates, and Dayakar Moparty, who managed and operated Red Oak Hospital, conspired to commit health care fraud. During trial, the jury heard evidence that Narang and Moparty unlawfully enriched themselves by submitting false and fraudulent claims for medical tests that were not medically necessary, not provided or both and then billed at Red Oak Hospital at a higher reimbursement rate.
Additionally, Narang and his co-conspirators falsified home health patient assessment form documents to make the beneficiaries appear sicker on paper to receive higher reimbursement rates from health care benefit programs such as Blue Cross Blue Shield, Cigna and Aetna. Moparty also also instructed his employees to falsely bill the medical services at Red Oak Hospital and other entities associated with Moparty, when in fact, the patients never received services from Red Oak and the other entities.
At trial, patients consistently testified that they had merely but a Groupon for weight loss shots. However, after meeting with Narang, they all received the same battery of medical tests that were not needed or provided. Health care benefit programs paid Red Oak Hospital approximately $3.2 million. Moparty then covertly paid Narang approximately $3 million to various corporate entities Narang owned.
Narang and MoParty’s co-conspirator, Dr. Gurnaib Sidhu, 67, of Houston, had previously pleaded to conspiracy to commit to health care fraud and is awaiting sentencing.
Narang and Moparty face up 10 years in federal prison for each count of health care fraud and up to 20 years for each count of money laundering. Narang and Moparty were permitted to remain on bond with an ankle monitor pending their sentencing hearing, set for June 20, 2019, before U.S. District Judge Sim Lake.
The FBI and Office of Personnel Management – Office of Inspector General conducted the investigation. Assistant U.S. Attorney Tina Ansari and Trial Attorney Drew Pennebaker are prosecuting the case.