Southern District of Texas
Press releases recorded for this federal judicial district.
Another Sent to Prison in Fort Hood Soldier Alien Smuggling CaseRead the Press Release
BROWNSVILLE, Texas – A 54-year old who had been illegally residing in Houston has been ordered to federal prison following her conviction of conspiracy to transport and harbor undocumented aliens and illegal re-entry after deportation, announced U.S. Attorney Ryan K. Patrick. Victoriano Zamora-Jasso aka “Tata,” pleaded guilty Jan. 29, 2018, on the eve of jury selection.
Today, U.S. District Judge Rolando Olvera handed Zamora-Jasso a 21-month sentence. Not a U.S. citizen, he is expected to face deportation proceedings following the sentence.
In early 2014, Zamora-Jasso began supplying aliens to Arnold Gracia, 48, from Harlingen. Gracia would then make arrangements with others to transport the aliens through the immigration checkpoint at Sarita. Gracia recruited Brandon Troy Robbins, 24, of San Antonio, Eric Alexander Rodriguez, 25, of Odem, Christopher David Wix, 24, of Abilene, and Yashira Perez-Morales, 28, from Watertown, New York – all then active duty soldiers stationed at Ft. Hood - to transport and deliver the aliens further north.
The conspiracy continued from approximately March to September of 2014. The soldiers would conceal the aliens under their military gear and made many successful trips during the course of the conspiracy.
Zamora-Jasso was indicted in 2016 and arrested after a traffic stop in Conroe in July 2017. At the time of his plea, he admitted his involvement in the conspiracy and to being a previously convicted alien who returned after deportation in 2013.
Gracia and all the soldiers were previously sentenced in 2015 and 2016 with Gracia receiving a 73-month sentence while Robbins, Rodriguez, Wix and Perez-Morales received sentences of 20, 12 months, 12 months and a day and five years probation, respectively.
Zamora-Jasso 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 Investigation conducted the investigation with the assistance of Customs and Border Protection. Assistant U.S. Attorneys Oscar Ponce and Angel Castro are prosecuting the case.
US Attorney Patrick Statement on the Departure of AG SessionsRead the Press Release
HOUSTON – The Southern District of Texas (SDTX) extends its appreciation to Attorney General (AG) Jeff Sessions for his leadership of the Department of Justice during his tenure as Attorney General. He was a prosecutor’s prosecutor and unwavering in his support of US Attorneys as well as state & local law enforcement across the country.
His leadership recommitted the Department to the rule of law, religious liberty, decreasing crime and attacking the opioid epidemic. By providing us with additional prosecutors, we continue to aggressively enforce our nation’s immigration laws and attack violent crime, thereby keeping our communities safe in the SDTX.
We sincerely thank AG Jeff Sessions for his dedicated service to our nation.
We will continue to effectuate the law enforcement priorities of President Donald J. Trump and look forward to working under the leadership of our next Attorney General.
Man Pleads Guilty to $20 Million Tax FraudRead the Press Release
HOUSTON – A man who had owned Stat Source Inc. has admitted he willfully failed to truthfully account for and pay over employment taxes to the IRS, announced U.S. Attorney Ryan K. Patrick.
Jonathan Adam Van Pelt withheld federal income taxes and Social Security and Medicare taxes from the wages of employees for one employment tax quarter. However, he did not timely file the required Employer’s Quarterly Federal Income Tax Return for that quarter reporting the withholdings and did not pay over the withholdings to the IRS.
In the plea agreement filed in the record of the case, Van Pelt admitted the total employment taxes he failed to pay to the IRS for Stat Source Inc., was more than $20 million, the amount owed for 18 employment tax quarters running from the third quarter of 2011 through the fourth quarter of 2015. Van Pelt admitted he spent the money owed on the unpaid employment taxes on various luxury items, such as luxury automobiles, expensive furniture, leather goods, jewelry, an expensive home, lavish vacations and various entertainment venues.
He has agreed to pay $20 million in restitution to the IRS.
U.S. District Judge Alfred H. Bennett accepted the plea today and has set sentencing for Jan. 17, 2019. At that time, Van Pelt faces up to five years in federal prison and a possible $250,000 fine. He was permitted to remain on bond pending that hearing.
IRS-Criminal Investigation conducted the investigation. Assistant U.S. Attorney Charles J. Escher is investigating the case.
Woman Sent to Prison for Smuggling a Minor Child into the United StatesRead the Press Release
BROWNSVILLE, Texas – A 42-year-old Raymondville woman has been sentenced following her conviction of attempting to bring a minor alien into the United States, announced U.S. Attorney Ryan K. Patrick. Melissa Grimaldo pleaded guilty Aug. 7, 2018.
Today, U.S. District Judge Rolando Olvera handed Grimaldo a 21-month sentence.
A co-conspirator from Austin contacted Grimaldo via Facebook Messenger and hired her to smuggle a minor child into the United States from Mexico. Grimaldo used the Social Security card and identifying information of her own biological daughter to prepare the child to evade American authorities.
On April 2, 2018, Grimaldo and her boyfriend, a self-registered sex-offender, crossed into Mexico, picked up the minor child from her family and attempted to enter the United States through the pedestrian lanes at the Gateway International Bridge in Brownsville. Grimaldo claimed the minor child was her own and presented her biological child’s Social Security card. She also told authorities she had submitted applications for U.S. Passports for both herself and the minor child, but they had not yet been processed.
Customs and Border Protection (CBP) officers questioned the minor child about the child’s school, teachers, grade level, age and birthday. The child gave answers that were inconsistent with the identification Grimaldo provided. The minor child grew very nervous and began looking around the room and avoiding eye contact with the officers.
After further questioning, Grimaldo admitted the child was not hers or a U.S. citizen, admitting she was to be paid $2000 to transport the child into the United States. She also admitted the identifying documents were that of her own biological daughter who had been taken away by Child Protective Services. Grimaldo was to take the child to her home to further coordinate the smuggling conspiracy.
She has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
CBP conducted the investigation. Assistant U.S. Attorney Holly D’Andrea prosecuted the case.
Self-styled “Financial Advisor” Ordered to Prison after Defrauding Professional Athletes Out of MillionsRead the Press Release
HOUSTON – A woman claiming to be a financial advisor and money manager has received that statutory maximum for defrauding former NBA players Travis Best and Dennis Rodman and NFL football players Ricky Williams and Lex Hilliard out of millions, announced U.S. Attorney Ryan K. Patrick. Peggy Ann Fulford, 60, formerly of Houston and New Orleans, pleaded guilty Feb. 1, 2018, to one count of interstate transportation of stolen property.
Today, U.S. District Judge Keith P. Ellison handed Fulford a 120-month prison sentence to be immediately followed by three years of supervised release. She was further ordered to pay $5,794,870 in restitution to the victims.
At the hearing, the court heard from Kristin Williams, former wife of Heisman trophy winner Ricky Williams, and Rebekah Hilliard, wife of former NFL player Lex Hilliard, who detailed how Fulford’s theft had devastated them and their families financially. During the hearing, Judge Ellison asked Kristin Williams how much of Ricky Williams’ NFL money Fulford got, to which she replied “All of it.”
While on bond in this case and after pleading guilty, Fulford had used the name “Peggy Jones.” During the hearing today, a New Orleans-area man provided additional testimony describing how Fulford, whom he knew as Jones, recently swindled him out of $25,000 to invest in a bogus medical company in Arizona.
In handing down the sentence, the court overruled all defense objections and gave Fulford the statutory maximum sentence of 120 months.
Fulford has also been known to use several aliases, including Peggy King, Peggy Williams, Peggy Simpson, Peggy Rivers, Peggy Barard, Devon Cole and Devon Barard.
Fulford admitted she falsely told victims she was a Harvard-educated financial advisor and money manager. She offered to manage their expenses for them and use their money exclusively to pay their bills, including their income tax payments and/or to make retirement investments for them. Instead, Fulford diverted millions of victim funds that she laundered through dozens of bank accounts to pay for her own personal expenses.
Fulford falsely told victims she graduated from Harvard Law School and Harvard Business School and that she had made millions on Wall Street by buying and selling hospitals or on real estate in the Bahamas. She never requested a fee because she told the victims she already had millions of dollars and just wanted to protect them from losing their money.
However, she used most of their money, or intended to use most of their money, for her own personal purposes. Fulford communicated with victims in person, by phone and by email, inducing them to open or give her access to bank accounts which she raided and used for personal expenses such as luxury cars, real estate, jewelry and airline tickets.
In carrying out her scheme to defraud, Fulford moved victim funds back and forth between various bank accounts. As part of the plea, Fulford admitted she moved $200,000 in stolen funds from a bank account in Montana to a bank account in Texas.
She has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation. Assistant U.S. Attorney Belinda Beek is prosecuting the case.
Katy Woman Sentenced in Health Care Fraud and Kickback SchemesRead the Press Release
HOUSTON - The owner of three Houston area clinics has been ordered to federal prison following her conviction of conspiracy to commit health care fraud, announced U.S. Attorney Ryan K. Patrick. Joy Aneke, 51, of Katy, entered her plea on May 16, 2018.
Today, U.S. District Judge Kenneth M. Hoyt handed Aneke a 36-month sentence to be immediately followed by three years of supervised release. Aneke was also ordered to pay $2,760,464.57 in restitution to the Medicare program.
Aneke was the owner of Jadac Unique Health Services, Almeda Physicians Clinic and the home health agency Community Joyful Home Health in Harris and Fort Bend Counties. Aneke previously admitted to causing others to submit false and fraudulent claims to Medicare for medical services that were not provided and/or were not authorized by a physician. Specifically, the clinics billed for medical services that were not performed, including services such as allergy testing, complex cystometrograms and anal/urinary muscle studies. The clinics did not have the equipment to provide such services.
As part of her plea, Aneke admitted she directed co-defendant Maureen Henshall, 62, of Highland, to falsify patient records at the clinic by adding tests and procedures that were not performed and/or were not medically necessary in order to increase the reimbursements that the clinics received from Medicare. Aneke instructed others to create false patient records, knowing the records would be used in support of claims billed to Medicare for tests and procedures which were not rendered, not medically necessary and not ordered by a licensed medical professional. Aneke also admitted she instructed Henshall to pay illegal kickbacks to patients to visit the clinics through others known as “recruiters” or marketers.”
Aneke previously admitted she employed Teodoro Seminario, 51, of Houston, who acted as the medical professional for the Jadac clinic, without any proper licensing. Seminario examined, assessed and/or treated patients without the assistance or supervision of any licensed medical professional. Seminario was not a licensed medical professional in the state of Texas. Aneke subsequently caused others to bill for the services Seminario provided as if he was a qualified, licensed medical professional. Seminario and Henshall were sentenced Oct. 29 to three years of supervised release and six months of home confinement for their roles in the scheme.
Aneke and her three clinics billed approximately $5,963,675.88 for medical diagnostic services that were not provided and/or were not authorized by a physician. As a result of the false or fraudulent billings, Medicare paid approximately $2,760,646.57.
Previously released on bond, Aneke 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 U.S. Department of Health and Human Services-Office of Inspector General and Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Michael Day is prosecuting the case.
Former U.S. Congressman Sentenced to 120 Months for Extensive Fraud, Tax and Election Crimes SchemeRead the Press Release
HOUSTON – A former U.S. Congressman was sentenced today to 120 months in prison and ordered to pay $1,014,718.51 in restitution, to be followed by three years of supervised release, for orchestrating a four-year scheme to defraud charitable donors of hundreds of thousands of dollars and secretly to funnel the proceeds to pay for personal expenses and to illegally finance his campaigns for public office.
U.S. Attorney Ryan K. Patrick, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Special Agent in Charge Matthew J. DeSarno of the FBI’s Washington Field Office’s Criminal Division and Special Agent in Charge D. Richard Goss of the IRS Criminal Investigation (CI) Houston Field Office made the announcement.
“At trial, the government proved to the jury that former congressman stockman ran his campaign and fraudulent charities to simply enrich himself and defrauded well-meaning donors,” said Patrick. “This type of corruption by public officials gives our entire democratic system a black eye.”
“Former Representative Stockman stole hundreds of thousands of dollars from charities, then used the money to pay personal expenses and fund his political campaigns,” said Benczkowski. “As this case demonstrates, the Justice Department and our law enforcement partners will aggressively pursue corrupt public officials, including those who seek to corrupt our elections for personal gain.”
Former U.S. Representative Stephen E. Stockman, 61, was convicted by a federal jury in Houston on April 12 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. Two of Stockman’s former congressional staffers previously pleaded guilty in the case. Thomas Dodd, 39, 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. 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.
“Former Congressman Stockman was entrusted by his constituents to serve in their best interest,” said DeSarno. “Instead, Stockman used his position in a series of schemes for personal gain at the expense of the public. Today’s sentence should send a clear message that the laws of the land apply to everyone, regardless of position or power. The FBI and our partners at the IRS will continue our efforts to identify fraudulent practices carried out by elected representatives. Public officials who abuse their position will be investigated, prosecuted, and subjected to the full punishment of the law for their actions.”
“Congressman Stockman used his position to defraud charitable foundations to advance his political career and pay for personal expenses,” said Goss. “His actions and failure to pay taxes on these illicit funds not only undermines the American tax system, but cultivates a lack of trust in our elected officials. Today’s sentencing demonstrates IRS-CI’s commitment to bring justice to those public officials who believe they are above the law.”
According to the evidence presented at trial, from May 2010 to February 2014, Stockman and his co-defendants solicited $1,250,571.65 in donations from charitable organizations and the individuals who ran those organizations based on false pretenses, then used a series of sham nonprofit organizations and dozens of bank accounts to launder the money before it was used for a variety of personal and campaign expenses.
Specifically, the evidence established that in 2010, Stockman and Dodd solicited an elderly donor in Baltimore, Maryland, for $285,000 to be used for legitimate charitable and educational purposes. Stockman and Dodd used a sham charity named the Ross Center to funnel the money to be used for a variety of personal expenses. The evidence further established that, in 2011 and 2012, Stockman and Dodd received an additional $165,000 in charitable donations from the Baltimore donor, much of which Stockman used illegally to finance his 2012 congressional campaign.
The trial evidence also showed that shortly after Stockman took office as a Member of the U.S. House of Representatives in 2013, he and Dodd used the name of another 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, a covert surveillance project targeting a perceived political opponent, an in-patient alcoholism treatment for a female associate and payments for hundreds of thousands of robocalls and mailings promoting Stockman’s candidacy for U.S. Senate in early 2014.
In addition, the evidence established that, in connection with Stockman’s Senate campaign, Stockman and Posey used another sham nonprofit entity to secure a $450,571.65 donation in order to fund a purportedly legitimate independent expenditure promoting Stockman’s candidacy. The evidence showed 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.
Finally, the evidence at trial demonstrated Stockman failed to pay taxes on any of the $1,250,571.65 in fraudulently acquired donations. In addition, 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 conducted the investigation. Assistant U.S. Attorney Melissa Annis and Trial Attorneys Ryan J. Ellersick and Robert J. Heberle of the Criminal Division’s Public Integrity Section are prosecuting the case.
Corpus Man Sent to Prison for Dealing Drugs, Possessing FirearmRead the Press Release
CORPUS CHRISTI, Texas – A 39-year-old Corpus Christi resident has been ordered to federal prison following his conviction of possessing with intent to distribute methamphetamine and illegally possessing a firearm and ammunition, announced U.S. Attorney Ryan K. Patrick. A federal jury convicted Juan Dedios Delagarza Aug. 14, 2018, following two days of trial and less than two hours of deliberation.
Today, U.S. District Judge Nelva Gonzales Ramos, who presided over the trial, handed Delagarza a 96-month sentence to be immediately followed by three years of supervised release.
During trial, jurors heard testimony that authorities executed a search warrant in the early morning hours of Sept. 28, 2013, at Delagarza’s Corpus Christi residence. He was there along with his five juvenile children and their mothers, among others.
Officers searched the residence and found more than 10 grams of methamphetamine, as well as numerous drug ledgers, scales, baggies, pipes and other drug paraphernalia. Also found was a loaded, stolen firearm and other ammunition. Officers and agents provided testimony about Delagarza’s prior felony conviction, the origin of the firearm and ammunition and the analysis of the narcotics recovered.
The jury also heard that Delagarza had previously admitted he knew of the methamphetamine.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; Texas Department of Public Safety; Nueces County Sheriff’s Office; and Corpus Christi Police Department all assisted in the joint investigation. Assistant U.S. Attorney Michael Hess is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Convicted Felon Heads to Prison for Firearms ViolationRead the Press Release
McALLEN, Texas – A 32-year-old Donna man has been sentenced in federal court for being a felon unlawfully in possession of a firearm, announced U.S. Attorney Ryan K. Patrick. Joaquin Ramos De La Cruz pleaded guilty Sept. 1, 2017.
Today, U.S. District Judge Randy Crane handed De La Cruz a sentence of 204 months in federal prison to be immediately followed by three years of supervised release. De La Cruz had previously been convicted for numerous criminal offenses, including aggravated robbery, aggravated assault and attempted murder. The court found him to be an armed career criminal. In handing down the sentence, Judge Crane considered De La Cruz’s disregard for human life displayed in his prior criminal conduct in which he discharged firearms at multiple individuals in separate criminal episodes. The court also considered several jail calls the defendant made in which he threatened others with death while awaiting sentencing.
On Jan. 17, 2017, the U.S. Marshals Service (USMS) and the Law Enforcement Emergency Regional Response Team (LEERT) attempted to execute an arrest warrant for De La Cruz at a residence in Donna. While authorities entered the residence, De La Cruz discharged multiple rounds from a Ruger, Model P95, 9mm pistol in an attempt to exit through a locked rear door to the residence. De La Cruz eventually exited, but was promptly apprehended. Agents recovered the Ruger 9mm pistol at the scene.
As a convicted felon, he is prohibited by federal law of possessing any firearm or ammunition.
In federal custody since his arrest, De La Cruz will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation with the assistance of the USMS and LEERT. Assistant U.S. Attorney Roberto Lopez Jr. prosecuted the case.
Victoria Man Imprisoned for Defrauding EmployerRead the Press Release
VICTORIA, Texas – A 48-year-old Victoria man has been ordered to federal prison following his convictions on 10 counts of wire fraud, announced U.S. Attorney Ryan K. Patrick. Murray Wade Carson pleaded guilty July 2, 2018.
Today, Senior U.S. District Judge John Rainey handed Carson a 27-month sentence to be immediately followed by three years of supervised release. At the hearing, additional testimony was provided that described how Carson used sophisticated means to cimmit is fraud. In handing down the sentence, the court noted that it was incredible that the crime went on for eight years until an auditor figured it out. “That was the only thing that stopped you,” said Rainey.
At the time of his plea, Carson admitted he devised a scheme to defraud his employer by charging his employer for the purchase non-existent goods and products from the Kirby Taylor Company (KTC). Carson had set up KTC and concealed that information from his employer.
Carson admitted he submitted invoices from KTC for nonexistent goods, which he purchased using his employer issued credit card. He then used his home computer to submit charges for these nonexistent goods.
The scheme lasted from approximately 2007 through June 2015.
Carson 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 conducted the investigation. Assistant U.S. Attorney John Braddock is prosecuting the case.
Two Traders Plead Guilty to $60 Million Commodities Fraud and Spoofing ConspiracyRead the Press Release
HOUSTON - Two former commodities traders of a New York, New York-based financial services firm have pleaded guilty for their participation in a $60 million commodities fraud and spoofing conspiracy that was perpetrated through the U.S. commodities markets. One of the traders also pleaded guilty for his participation in a second commodities fraud and spoofing conspiracy at another financial services firm based in Chicago, Illinois.
U.S. Attorney Ryan K. Patrick, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Special Agent in Charge Jeffrey S. Sallet of the FBI’s Chicago Field Office made the announcement.
Krishna Mohan, 33, of New York, pleaded guilty today to one count of conspiracy to engage in wire fraud, commodities fraud and spoofing. Sentencing is scheduled for Feb. 28, 2019, before U.S. District Judge Gray H. Miller of the Southern District of Texas (SDTX).
Kamaldeep Gandhi, 36, of Chicago, pleaded guilty Nov. 2 to two counts of conspiracy to engage in wire fraud, commodities fraud and spoofing. Sentencing is scheduled for Feb. 22, 2019, before U.S. District Judge Ewing Werlein Jr. of the SDTX.
As part of their pleas, Gandhi and Mohan admitted that from March 2012 to March 2014, they conspired with Yuchun “Bruce” Mao and others at the first firm (Trading Firm A) to mislead the markets for E-Mini S&P 500 and E‑Mini NASDAQ 100 futures contracts traded on the Chicago Mercantile Exchange (CME) and E-Mini Dow futures contracts traded on the Chicago Board of Trade (CBOT). Gandhi and Mohan further admitted they and their co-conspirators placed thousands of orders that they did not intend to execute, or “spoof orders,” in order to obtain executions of other orders, or “primary orders,” at better prices, quantities and/or times than otherwise possible to the benefit of the co-conspirators and Trading Firm A. Gandhi and Mohan further admitted the United States has calculated that the scheme resulted in market losses of more than $60 million.
Also, as part of Gandhi’s plea, he further admitted that from May 2014 through October 2014, while employed at the second firm (Trading Firm B), he conspired with others to mislead the markets for E‑Mini S&P 500 futures contracts traded on the CME by agreeing to place, and himself placing, hundreds of spoof orders for E-Mini S&P 500 futures contracts in order to create the false and misleading appearance of increased supply or demand. Gandhi further admitted the United States has calculated that the scheme resulted in market losses of more than $1.3 million.
The FBI’s Chicago Field Office is conducting the investigation. SDTX Assistant U.S. Attorney John Lewis and Trial Attorneys Mark Cipolletti, Jeffery Le Riche and Matthew Sullivan of the Criminal Division’s Fraud Section are prosecuting the case. The Commodity Futures Trading Commission’s Division of Enforcement provided substantial assistance and referred this matter to the Department.
Individuals who believe that they may be a victim in these cases should visit the Fraud Section’s Victim Witness website for more information.
Jury Convicts Los Fresnos Woman of Alien SmugglingRead the Press Release
CORPUS CHRISTI, Texas - A 41-year-old resident of Los Fresnos has been convicted of transporting illegal aliens, announced U.S. Attorney Ryan K. Patrick. The jury deliberated for less than an hour before convicting Dianna Garza of conspiracy to transport illegal aliens and two counts of transporting illegal aliens following a two-day trial.
During the trial, the jury heard testimony that on Aug. 22, 2018, U.S. Border Patrol (BP) agents observed a vehicle parked on the side of Highway 77 just north of the Sarita Border Patrol checkpoint. The agents then observed multiple subjects running out of the brush towards the parked vehicle. After the vehicle started moving, agents conducted a traffic stop, at which time two undocumented aliens fled but were apprehended in the brush. The aliens admitted to paying smugglers to avoid detection while traveling from Matamoros, Mexico, to Houston.
U.S. District Judge Nelva Gonzales Ramos presided over the trial and set sentencing for Jan. 30, 2019. At that time, Garza faces up to 10 years imprisonment and a possible $250,000 fine.
She has been and will remain in in custody pending that hearing.
Customs and Border Protection conducted the investigation with the assistance of the U.S. Marshals Service. Assistant U.S. Attorneys Michael Hess and Reid Manning are prosecuting the case.
Texas Businessman Pleads Guilty to Money Laundering Charges in Connection with Venezuela Bribery SchemeRead the Press Release
HOUSTON – A former procurement officer of Venezuela’s state-owned and state-controlled energy company, Petroleos de Venezuela S.A. (PDVSA), pleaded guilty today for his role in an international money laundering scheme involving bribes paid by the owners of U.S.-based companies to Venezeulan government officials in exchange for securing additional business with PDVSA and payment priority on outstanding 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 U.S. Immigration and Customs Enforcement’s Homeland Security Investigations’ (HSI) Houston Field Office made the announcement.
Ivan Alexis Guedez, 47, of Katy, pleaded guilty before U.S. Magistrate Judge Christina A. Bryan to one count of conspiracy to launder money. Sentencing has been set for Feb. 20, 2019, before U.S. District Judge Gray H. Miller.
According to admissions made in connection with his, Guedez agreed with other PDVSA officials and businessmen who were employed by a Miami-based PDVSA supplier that, in exchange for bribe payments, Guedez and the other PDVSA officials would direct PDVSA business toward the supplier. The co-conspirators who were employed by the PDVSA supplier also received kickbacks. Guedez and his co-conspirators concealed the corrupt payments by, among other things, communicating using fictitious email addresses, creating false invoices to justify the payments and directing the bribe payments to a Swiss account in the name of a shell company before being disbursed to the co-conspirators.
As part of his plea agreement, Guedez has agreed to forfeit the proceeds of his criminal activity.
Guedez becomes the latest individual to plead guilty as part of a larger, ongoing U.S. government investigation into bribery at PDVSA. Including Guedez, the Justice Department has announced the guilty pleas of a total of 15 individuals in connection with the investigation.
HSI Houston is conducting the ongoing investigation with assistance from HSI Boston and Madrid, as well as from IRS -Criminal Investigation. Assistant U.S. Attorneys (AUSA) John Pearson and Robert S. Johnson, Trial Attorneys Jeremy R. Sanders, Sarah E. Edwards and Sonali Patel of the Criminal Division’s Fraud Section are prosecuting the case. AUSA Kristine Rollinson is handling the forfeiture aspects of the case.
The Criminal Division’s Office of International Affairs and the Cayman Islands Mutual Legal Assistance Authority and 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 Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
From Tweets to Time: Firearms Investigation Stemming from Social Media Sends Houston Man to PrisonRead the Press Release
HOUSTON – A 26-year-old man has been ordered to federal prison following his conviction for unlawfully possessing firearms, announced U.S. Attorney Ryan K. Patrick. Fabian Spotts pleaded guilty in June 2018 to three counts of being a felon in possession of a firearm.
Today, U.S. District Judge Kenneth M. Hoyt handed Spotts an 84-month sentence followed by three years of supervised release.
At the hearing, the court saw screen shots of posts from Spotts’ Twitter account depicting him posing with various firearms and offering drugs for sale. Judge Hoyt noted the online images were out there for the world to see and could not be taken back.
The government also described Spotts’ extensive criminal history involving weapons and that, at the time of his arrest on these charges, he as found in possession of of a fully loaded Glock pistol, marijuana and pills and nearly $2,500 in cash.
Agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) learned Spotts was selling stolen firearms utilizing his Twitter account. Following discussions, an undercover ATF agent and confidential informant met with Spotts on three separate occasions in November and December 2017 and conducted controlled purchases from Spotts of semi-automatic rifles, magazines, ammunition, sights and body armor. The transactions took place at the Palms Apartments on the 6400 block of Westheimer in Houston.
Spotts supplied two Anderson Manufacturer, model AM-15, 5.56 caliber semi-automatic rifles with sights, a Mega Machine Shop Inc., model MATEN, 5.56 caliber AR-10 style semi-automatic rifle, a Southern Arms and MFG LLC, Model SAF-15, 5.56 caliber semi-automatic rifle, various magazines loaded with ammunition including a 100-round 5.56 caliber fully-loaded drum magazine as well as a bullet proof vest.
Previously convicted of robbery, a felony offense, he is prohibited from possessing firearms or ammunition.
The ATF, Houston Police Department and task force officers from the North Division Crime Suppression Team conducted the investigation.Assistant U.S. Attorney Carrie Wirsing prosecuted the case which was brought as part of the Department of Justice’s Project Safe Neighborhoods (PSN), a nationwide program to reduce gun and gang crime in America and the Houston Law Enforcement Violent Crime Initiative which seeks to proactively fight violent crime across the Greater Houston area
Seller of Shipping Containers Heads to Prison for Securities SchemeRead the Press Release
HOUSTON – A 54-year-old resident of Kingwood and Panama City, Panama, has been ordered to federal prison for mail fraud and ordered to pay more than $8 million in restitution, announced U.S. Attorney Ryan K. Patrick. Steven Patrick Jones pleaded guilty May 1, 2014.
Today, U.S. District Judge Gray Miller, who accepted the guilty plea, handed Jones a total sentence of 85 months in federal prison. He was further ordered to pay restitution to victims in the amount of $8.2 million.
Jones has admitted he and his partner - John Patrick Acord, 75, of Magnolia - formed a company called Intermodal Wealth (IW) to sell shipping containers. Dean Lester Springer Sr., 58, of Hillsboro, Oregon, worked as a salesman for IW from May to November 2012.
Intermodal offered to sell the containers to investors, then lease the containers for them. Jones promised to pay their investors 16% per year from the proceeds of the leases. However, the company had few containers and did not lease any of them. Payments were made to investors, but the funds came from subsequent investors rather than from true proceeds.
The Texas State Securities Board issued an emergency cease and desist order against IW from offering securities in Texas on July 20, 2012, claiming the company was engaged in fraud and that their acts threatened immediate and irreparable harm to the public. They also included information about their criminal histories.
As a result of the publicity following the order, Springer formed World Container (WC) on Nov. 30, 2012, offering to sell securities to investors. Specifically, he promised to use investor funds to purchase shipping containers for the investors and make money for them by leasing the containers as he had done as a salesman for IW.
He told Investors that WC was independent of IW and its associated companies. However, Springer sent the contracts, investments and money received from WC investors to Jones and IW in Panama. Springer did not purchase or lease containers for investors as promised. Many WC investors were not told IW was receiving their funds, nor about the criminal records, extensive civil judgments, tax liens or Securities and Exchange Commission injunctions against Jones and Acord. Springer also failed to reveal to investors that he received a commission from investments from Jones and Acord.
Through WC, Springer recruited new investors using a business model very similar to IW. WC received $3,927,189.28 from investors and paid $728,886.38 in returns. Investors lost $3,198,302.90 as a result of the scheme.
Intermodal received more than $5.5 million from investors throughout the United States and worldwide. Jones, his family and partners spent the majority of the investment funds they received.
Acord and Springer also pleaded guilty and were later sent to prison.
Jones 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 U.S. Postal Inspection Service conducted the investigation with the assistance of the Texas State Securities Board. Assistant U.S. Attorney Jay Hileman is prosecuting the case.
Houston Pair Charged with Defrauding Dr. Pepper SnappleRead the Press Release
HOUSTON – Two people have been charged with conspiracy to commit mail fraud and mail fraud for their participation in a scheme to defraud Dr. Pepper Snapple Group Inc. (DPSG), announced U.S. Attorney Ryan K. Patrick.
Authorities took Joseph A. Isaac, 52, of Houston, into custody today, He is expected to make his initial appearance before U.S. Magistrate Judge Nancy Johnson at 2:00 p.m. Co-defendant Anna Maria Sites, 41, of Friendswood, is expected to make her initial appearance in the near future.
The indictment, returned under seal Oct. 17 and unsealed today, alleges Isaac and Sites defrauded DPSG from 2010 through Feb. 17, 2015. The pair worked at FulFill Plus Inc., a company which administered rebate campaigns for DPSG, according to the charges.
DPSG paid money to Fulfill Plus to fund rebates for those who had requested them. However, the rebates were not paid, according to the indictment. Isaac and Sites allegedly used the money not paid out in rebates for their own personal expenses and non-rebate related expenses of FulFill Plus.
Conspiracy to commit mail fraud carries a maximum penalty of five years imprisonment, upon conviction. Each also faces up to 20 years for each count of mail fraud. Both charges also carry a potential $250,000 maximum fine.
The FBI investigated. Assistant U.S. Attorney John Braddock is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Former Webb County Commissioner ConvictedRead the Press Release
HOUSTON - A former Webb County Commissioner and a former city councilman have entered guilty pleas to conspiracy to commit federal program bribery, First Assistant U.S. Attorney Tim Braley announced today along with FBI Special Agent in Charge Christopher Combs.
Former Webb County Commissioner Jaime Alberto Canales, 51, and John “Johnny” Amaya, 70, owner of JAUC Services Inc. and a former Laredo City Councilman, pleaded guilty in Houston federal court today. Both reside in Laredo.
Canales admitted at least in or about January 2015 through in or about January 2017, an individual gave and agreed to give things of value in order to influence and reward him for his official acts as a Webb County commissioner and Laredo Metropolitan Planning Organization (MPO) representative. Canales accepted these things of value, intending to be influenced and rewarded for his official assistance. These things of value, which included checks disguised as campaign contributions and personal loans, use of a co-conspirator Padre Island condominium and meals and entertainment, were provided in connection with business and transactions of Webb County and the Laredo MPO well in excess of $5,000.
Amaya owned and controlled JAUC Service Inc. A co-conspirator employed Amaya as a consultant for Corporation A, as listed in the indictment, from in or about January 2011 through in or about April 2017. In this role, Amaya met and spoke with various Webb County and City of Laredo officials to direct them to take actions that benefitted the co-conspirator and corporation. Amaya maintained close contact with officials who could help the conspirator and corporation by setting up meetings and passing messages to and from the conspirator. Amaya admitted he acted as a middleman between the conspirator and public officials. At the conspirator direction, Amaya provided cash payments, personal checks disguised as campaign contributions and meals and entertainment to these officials, including Canales.
All of the payments were reimbursed with the corporation’s corporate funds, either directly or indirectly. At the conspirator direction, Amaya also supported specific candidates in the November 2016 election cycle by providing rental cars, drivers and gas cards for those rental vehicles to transport voters to the polls, all for which the corporation paid.
U.S. District Judge Sim Lake accepted the pleas today and has set sentencing for Feb. 14, 2019. At that time, Canales and Amaya face up to five years in federal prison. They were permitted to remain on bond pending that hearing.
The FBI conducted the investigation. Assistant U.S. Attorneys Carolyn Ferko and John Pearson are prosecuting the case.
Victoria Man Gets Significant Sentence for Hate Crime in Burning of Local MosqueRead the Press Release
HOUSTON - The 26-year-old man convicted of burning the Victoria Islamic Center in January 2017 has been ordered to federal prison for more than 24 years.
U.S. Attorney Ryan Patrick for the Southern District of Texas, Acting Assistant Attorney General John Gore of the Justice Department’s Civil Rights Division, Special Agent in Charge Fred Milanowski of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Special Agent in Charge Perrye K. Turner of the FBI made the announcement.
A federal jury in Victoria returned guilty verdicts July 16, 2018, on all counts as charged against Marq Vincent Perez. They found him responsible for a hate crime in the burning of the Jan. 28, 2017, and for use of a fire to commit a felony. In addition, they found he possessed an unregistered destructive device for an incident that occurred on Jan. 15, 2017.
Today, Senior U.S. District Judge John Rainey noted the seriousness of the offense before imposing a 294-month-term of imprisonment. In handing down the sentence, the court noted that the most important factor in determining punishment was adequate deterrence, stating that “this conduct would not be tolerated in our society.”
Judge Rainey also commented on hate crimes and how they are “a cancer to our society” and that “this must stop.” The Judge also noted that Perez wanted to send a message to the Muslim community, but the court was also sending a message to Perez and others like him.
At the hearing, three members of the mosque also provided testimony detailing the impact the crime has had on them, their families and the community. They noted that people are still frightened to this day, noting that some of the female members do not even wear the traditional head coverings in public. Some members cannot even bring themselves to return because of their fears.
“The Attorney General has said that the Freedom of religion is indeed our ‘first freedom’—being the first listed right of our First Amendment,” said Patrick. “The Department of Justice prosecutes violent and dangerous crime, but also, and particularly when that crime interferes with someone’s ability to practice their religious faith. Not only was this a dangerous and potentially deadly act, but also one spurred from hate. I am glad justice was served in this case.”
“Everyone in this country has the right to worship freely without fear of violence,” said Gore. “This defendant terrorized the Muslim community in Victoria, and the Department partnered with federal, state and local agencies to ensure that the person responsible for this heinous hate crime would be found and prosecuted.”
“ATF is the primary federal law enforcement agency tasked with investigating House of Worship Fires and views an arson against a house of worship as not just an attack on a building, but as an attack against an entire community,” said Milanowski. “ATF is pleased the defendant has been held accountable for this crime and will continue to respond to these violent crimes using all available resources.”
“Mr. Perez sought to provoke terror within the tranquil space of the Victoria Islamic Center," said FBI Assistant Special Agent-in-Charge Edward Michel. "By deliberately burning down this mosque, Mr. Perez attacked a specific religious congregation in the hope of spreading fear, conflict and depriving Victoria’s Islamic community of their peaceful and safe place to worship. Today's sentencing illustrates that hate crimes will not be tolerated. No one in this country should feel afraid to openly practice their religion or express their beliefs. The FBI will continue to aggressively investigate civil rights violations wherever and whenever they occur."
At the time of the trial, the jury heard that the case was “a simple, straightforward case of hate.”
Testimony at trial detailed how Perez conducted what he described as “recon” by breaking into the mosque a week before he set it on fire. Evidence presented at trial showed Perez communicated with someone through Facebook about breaking into the mosque a second time, the same night of the fire. A witness who was with Perez on the night of the fire described how Perez used a lighter to set papers on fire inside the mosque and how excited Perez was upon seeing the mosque in flames just minutes later.
The witness testified that Perez said that he burned down the mosque, because he wanted to “send a message.”
During the execution of a search warrant, federal agents recovered stolen property taken from the mosque the night of the fire in Perez’s home. Several witnesses at trial also testified about Perez’s animus towards Muslims and that he often used anti-Muslim slurs.
Members of the mosque testified at the trial that they watched from afar as federal, state and local law enforcement officers tried to extinguish the fire, but observed that the fire could not be put out until it had engulfed the entire mosque. Those witnesses also testified that, after the destruction of the mosque, the Victoria Islamic Center raised money online from over 20,000 individuals from all over the United States and more than 90 countries to rebuild the mosque.
When Perez learned that the Victoria Muslim community had raised money to rebuild the mosque, he told a witness that he would burn the mosque down again if it was rebuilt.
ATF and FBI conducted the investigation along with the City of Victoria Fire Marshal’s Office, Victoria Fire Department, Victoria Police Department, Texas Department of Public Safety - Criminal Investigations Division and Texas Rangers with assistance of Texas State Fire Marshal’s Office and Sheriff’s Offices in Victoria and Nueces Counties and the Victoria County District Attorney’s Office.
The City of Victoria has also acknowledged the efforts in this case, noting “The Victoria Fire Department and the City of Victoria would like to extend our gratitude and appreciation to all of our local state and federal partners. We also want to thank all of the local businesses and organizations that have supported the investigation team. This has been a long process, 21 months. We want to thank the community for their patience and support.”
Assistant U.S. Attorneys Sharad S. Khandelwal and Kate Suh prosecuted the case along with Trial Attorney Saeed Mody of the Department of Justice’s Civil Rights Division
Three Traders Charged, and Two Have Agreed to Plead Guilty, in Connection with More Than $60 Million Commodities Fraud and Spoofing ConspiracyRead the Press Release
HOUSTON - Three former commodities traders of a New York-based financial services firm (Trading Firm A) were charged yesterday for their alleged participation in an over $60 million commodities fraud and spoofing conspiracy that was perpetrated through the U.S. commodities markets. Two of these traders have agreed to plead guilty for their respective roles in the criminal conspiracy.
U.S. Attorney Ryan K. Patrick, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Special Agent in Charge Jeffrey S. Sallet of the FBI’s Chicago Field Office made the announcement.
Yuchun “Bruce” Mao, 39, a citizen of the People’s Republic of China, was indicted on one count of conspiracy to commit commodities fraud, two counts of commodities fraud and two counts of spoofing. Kamaldeep Gandhi, 36, of Chicago, was charged by criminal information with two counts of conspiracy to engage in wire fraud, commodities fraud and spoofing. Krishna Mohan, 33, of New York, New York, was charged by criminal information with one count of conspiracy to engage in wire fraud, commodities fraud and spoofing.
“The Southern District of Texas aggressively prosecutes white collar crime,” said Patrick. “Home to the second most Fortune 500 companies in the nation, our Houston division is uniquely suited to prosecute white collar fraud in whatever form it comes, and we enjoy terrific relationships with law enforcement partners around the country and from around the world.”
“As alleged in today’s charges, these individuals engaged in a sophisticated scheme to distort the futures market for their own advantage by placing large ‘spoofed’ trading orders that they never intended to execute,” said Benczkowski. “Investor trust is the cornerstone of our trading markets, and the Criminal Division will aggressively investigate and prosecute those who undermine that trust by engaging in spoofing or any other illegal conduct.”
“These charges demonstrate the FBI’s firm commitment to hold accountable those who seek to deceive and defraud the public,” said Sallet. “Such schemes cannot be allowed to threaten confidence in the free market, which represents one of many strengths of our great nation. We will continue to work together to aggressively pursue anyone who undermines the integrity of our financial markets and disregards the rule of law.”
The indictment alleges Mao was co-head of a trading team that traded commodities on behalf of Trading Firm A, working in Chicago and New York. The indictment alleges that from in or around March 2012 through in or around March 2014, Mao and others conspired to mislead the markets for E-Mini S&P 500 and E Mini NASDAQ 100 futures contracts traded on the Chicago Mercantile Exchange (CME) and E-Mini Dow futures contracts traded on the Chicago Board of Trade (CBOT). The indictment further alleges Mao and his co-conspirators deceived market participants and manipulated markets by placing thousands of orders that they did not intend to execute, or “spoof orders,” in order to create the false and misleading appearance of increased supply or demand. Market participants that traded futures contracts in these three markets while the spoof orders distorted market prices incurred market losses of over $60 million. Mao and his co-conspirators are alleged to have placed these spoof orders in order to benefit themselves Trading Firm A.
Count one of the criminal information alleges Gandhi conspired, with Mao and others, to commit the underlying offenses while employed at Trading Firm A. Count two of the criminal information alleges that, from in or around May 2014 through in or around October 2014, Gandhi, while employed at a second Chicago-based trading firm (Trading Firm B), conspired with others to mislead the markets for E-Mini S&P 500 futures contracts traded on the CME by agreeing to place, and himself placing, spoof orders for E-Mini S&P 500 futures contracts in order to create the false and misleading appearance of increased supply or demand. Gandhi has agreed to plead guilty to the charges in the criminal information.
The charges against Mohan arise from his participation in the conspiracy alleged above while employed at Trading Firm A. Mohan has agreed to plead guilty to the charge in the criminal information.
The FBI’s Chicago Field Office is investigating the case. Assistant U.S. Attorney John Lewis and Trial Attorneys Mark Cipolletti, Jeffery Le Riche and Matthew Sullivan of the Criminal Division’s Fraud Section are prosecuting the case. The CFTC’s Division of Enforcement provided substantial assistance in this case.
The charges in the indictment and the two criminal informations are merely allegations. The defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Individuals who believe that they may be a victim in these cases should visit the Fraud Section’s Victim Witness website for more information.
Bellaire Man Charged in Ponzi SchemeRead the Press Release
HOUSTON – A 60-year-old resident of Bellaire made his initial appearance on a 13-count indictment charging him with wire fraud, mail fraud and money laundering, announced U.S. Attorney Ryan K. Patrick.
William Andrew Hightower surrendered to federal authorities yesterday.
He was president of Hightower Capital Group (HCG) which he founded it in 2010. There, he held himself out to be an investment advisor.
The 13-count indictment alleges Hightower took money from clients from 2013-2018 and made false promises as to their investments. In reality, according to the charges, he was conducting a Ponzi Scheme.
Hightower would allegedly tell investors their money was being invested in various projects, such as restaurants, movies, insurance contracts, among other things. The indictment alleges Hightower received more than $10 million from investors, many of whom believed Hightower was investing their money in legitimate projects. According to the allegations, Hightower used investor funds to pay earlier investors in a Ponzi Scheme, pay himself and fund his lifestyle.
Hightower also concealed from his clients that the Financial Industry Regulatory Authority (FINRA) had barred him from acting as a broker or otherwise associating with a broker-deal firm in October 2015, according to the indictment.
If convicted, he faces up to 20 years in federal prison for each count as well as a thousands of dollars in possible fines.
The FBI conducted the investigation. Assistant U.S. Attorney Suzanne Elmilady is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless and until proven guilty through due process of law.
Houston Heroin Distributor Convicted after Taking over Family Drug Trafficking BusinessRead the Press Release
HOUSTON – A Mexican national has entered a guilty plea to conspiring to possess with intent to distribute heroin, announced U.S. Attorney Ryan K. Patrick.
Victor Manuel Morales-Moreno, 35, admitted to conspiring to distribute heroin to street level dealers and users for more than two years.
According to court records, Morales relocated to Houston from California to take over a heroin trafficking ring following the arrests and incarceration of his relatives Jose Herrera-Alvarado and Pedro Herrera-Alvarado. The Herrera-Alvarado brothers pleaded guilty to conspiracy to possess with intent to distribute heroin and later sentenced to life in federal prison.
Erasto Aguirre-Suarez, 52, a Mexican national, also pleaded guilty today to conspiracy to possess with intent to distribute heroin. He admitted he moved to Texas with Morales-Moreno to assist him in the daily operations of the heroin business. A third co-defendant, Valentin Anthony Cardenas, 35, of Houston, previously entered his plea possession with intent to distribute heroin.
Sentencing is scheduled for Feb. 5, 2019 before U.S. District Judge Andrew S. Hanen. At that time, Morales-Moreno face a minimum of 10 years and up to life imprisonment as well as a possible $10 million maximum fine.
They have been and will remain in custody pending that hearing.
The FBI and Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorney Casey N. MacDonald is prosecuting the case.
Former Police Lieutenant Sentenced to Federal PrisonRead the Press Release
McALLEN, Texas ‐ A former lieutenant with the Edcouch Police Department (EPD) has been ordered to federal prison for drug trafficking, announced U.S. Attorney Ryan K. Patrick. Vicente Salinas, 43, of Elsa, pleaded guilty Dec. 5, 2016, to conspiracy to possess with intent to distribute more than 500 grams of cocaine.
Today, U.S. District Judge Ricardo H. Hinojosa ordered Salinas to serve 39 months in prison. In imposing the sentence, the court ruled Salinas abused his position of trust to facilitate the drug trafficking offense. Judge Hinojosa further noted that when police officers commit crimes, it effects the community more than just the impact of that one offense - it erodes the trust the community has with law enforcement. Salinas will also serve two years of supervised release.
On March 18, 2013, Salinas received information which led to the seizure of 15 bundles of cocaine. The drugs were stored at EPD for several days, but then transported to the Hidalgo County High Intensity Drug Trafficking Area Task Force. Upon initial inspection, officers discovered four of the bundles contained blocks of wood.
Salinas admitted he had participated in the theft. He confessed he was part of a scheme to steal the bundles shortly after officers initially logged the 15 bundles into evidence. They were replaced with bundles containing the wood blocks so that no one would detect the theft.
Salinas was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations, Drug Enforcement Administration and IRS - Criminal Investigation conducted the Organized Crime Drug Enforcement Task Force Investigation which was dubbed Operation Blue Shame. Assistant U.S. Attorneys Anibal J. Alaniz and Kristen Rees prosecuted the case.
Armed Robber Gets Significant Sentence for Pawn Shop BurglariesRead the Press Release
HOUSTON – Two Houston men have been ordered to federal prison for their convictions related to a string of Cash America Pawn robberies, announced U.S. Attorney Ryan K. Patrick. Patrick Earl Cooper Jr., 20, pleaded guilty July 2, 2018, while Joe Gutierrez entered his plea the month prior.
Today, U.S. District Judge Lynn Hughes handed Cooper a sentence of 108 months for his involvement in two armed robberies in addition to another seven years for using a firearm during a robbery. The total 16-year sentence will be followed by two years of supervised release. Gutierrez received 76 months for using a knife to rob a Cash America Pawn store on Oct. 31, 2017. He will also serve two years of supervised release.
Cooper was sentenced for two specific robberies at Cash America Pawn stores, during which the defendants stole firearms, cash and jewelry. Specifically, in October 2017, Cooper joined with Derrick Stewart to rob the Cash America Pawn at 8223 North Freeway at gunpoint. Cooper, Stewart and Gutierrez were finally captured and arrested Oct. 31, 2017, after robbing the Cash America Pawn at 1816 North Durham Street at knifepoint.
In imposing the sentence, the court found Cooper lacked remorse for his crimes and had not accepted responsibility when he assaulted a fellow inmate while pending sentencing.
Stewart, 20, of Houston, pleaded guilty to two robberies and using a firearm during a crime of violence and is scheduled to be sentenced Dec. 10, 2018.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, Houston Police Department and the Harris County Precinct One Constable’s Office assisted with the Cash America Pawn robbery investigations. Assistant U.S. Attorneys Heather Winter and Richard Hanes are prosecuting the case.
Oil Services CEO and Executive Sentenced to Prison for Roles in Foreign Bribery SchemeRead the Press Release
A former CEO and former executive of an oil services company were sentenced to prison today for their involvement in an international bribery conspiracy.
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.
Anthony “Tony” Mace, 66, of the United Kingdom, the former CEO of SBM Offshore, N.V. (SBM), a Dutch oil services company, and a former Board Member of SBM’s U.S.-based subsidiary, SBM Offshore USA Inc. (SBM USA), was sentenced to serve 36 months in prison and a fine of $150,000. Robert Zubiate, 66, of Agoura Hills, California, a former sales and marketing executive at SBM USA, was sentenced to serve 30 months in prison and a fine of $50,000.
“Anthony Mace and Robert Zubiate played key roles in a massive bribery scheme that involved the payment of millions of dollars to public officials in exchange for lucrative oil-services contracts,” said Assistant Attorney General Benczkowski. “Their actions rewarded corrupt officials’ greed and tilted the playing field against honest, law-abiding companies. Today they paid a heavy price for their crimes. Their sentences should serve as a warning to corporate executives everywhere: if you pay bribes to advance your business interests, we will catch you and we will prosecute you to the fullest extent of the law.”
“Pursuing corrupt companies and individuals who misuse our financial system to commit FCPA violations represents our commitment to keeping the integrity of American democracy in place both here and abroad,” said U.S. Attorney Patrick. “We will continue to prosecute such cases involving wrongdoing for corporate crimes and greed.”
“This case is a prime example of Homeland Security Investigations’ enduring commitment to work closely with our foreign law enforcement partners to track down those who seek to gain an unfair competitive advantage in the international marketplace,” said HSI Special Agent in Charge Dawson. “By working together to hold these individuals accountable for their actions, we have taken a significant step to level the playing field for companies and consumers.”
In November 2017, Mace and Zubiate each pleaded guilty to one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA) in connection with a scheme to bribe foreign government officials in Brazil, Angola and Equatorial Guinea.
According to admissions made in connection with his plea agreement, Mace acknowledged that prior to his becoming CEO, other employees of SBM entered into an agreement to pay bribes to foreign officials including at Brazil’s state-controlled oil company, Petróleo Brasileiro S.A. (Petrobras); Angola’s state-owned oil company, Sociedade Nacional de Combustíveis de Angola, E.P. (Sonangol); and Equatorial Guinea’s state-owned oil company, Petroléos de Guinea Ecuatorial (GEPetrol). Mace admitted that he joined the conspiracy by authorizing payments in furtherance of the bribery scheme and deliberately avoided learning that those payments were bribes.
In particular, Mace maintained a spreadsheet reflecting payments to five individuals. Mace acknowledged that even though he was aware there was a high risk those individuals were Equatorial Guinean officials, he nevertheless authorized SBM to make over $16 million in payments to those individuals. Mace further continued a practice that was instituted before he became CEO by splitting payments to SBM’s Brazilian intermediary, that is, paying a portion of the intermediary’s commission to an account in Brazil and another portion of the agent’s commission to accounts in Switzerland held in the name of shell companies. Mace deliberately avoided learning that the ultimate recipients of the payments that he authorized to the shell companies were Petrobras officials, he admitted.
According to admissions made in connection with Zubiate’s plea, from between 1996 and 2012, Zubiate and others used a third-party sales agent to pay bribes to foreign officials at Petrobras in exchange for those officials’ assisting SBM and SBM USA with winning lucrative offshore oil projects from Petrobras. Zubiate also admitted engaging in a kickback scheme with the bribe-paying sales agent for SBM and its SBM USA.
In November 2017, SBM entered into a $238 million dollar, three-year deferred prosecution agreement with the United States over its role in the conspiracy, while its subsidiary, SBM USA, pleaded guilty to one count of conspiracy to violate the FCPA.
HSI and IRS Criminal Investigation investigated the case. Trial Attorney Dennis R. Kihm of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Suzanne Elmilady of the Southern District of Texas are prosecuting the case. The Criminal Division’s Office of International Affairs also provided substantial assistance in this matter.
The Department of Justice is grateful to Brazil’s Ministério Público Federal, the Netherlands Public Prosecution Service and Switzerland’s Office of the Attorney General and Federal Office of Justice for providing substantial assistance in gathering evidence during this investigation.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal-fraud/foreign-corrupt-practices-act.
Oil Services CEO and Executive Sentenced for Roles in Foreign Bribery SchemeRead the Press Release
HOUSTON - A former CEO and former executive of an oil services company were sentenced to prison today for their involvement in an international bribery conspiracy.
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 U.S. Immigration and Customs Enforcement’s Homeland Security Investigations’ (HSI) Houston Field Office made the announcement.
Anthony “Tony” Mace, 66, of the United Kingdom was the former CEO of SBM Offshore N.V. (SBM), a Dutch oil services company and a former Board Member of SBM’s U.S.-based subsidiary, SBM Offshore USA Inc. (SBM USA). He was sentenced to serve 36 months in prison and ordered to pay a fine of $150,000. Robert Zubiate, 66, of Agoura Hills, California, a former sales and marketing executive at SBM USA, was sentenced to 30 months in prison and ordered to pay a $50,000 fine.
“Pursuing corrupt companies and individuals who misuse our financial system to commit FCPA violations represents our commitment to keeping the integrity of American democracy in place both here and abroad,” said Patrick. “We will continue to prosecute such cases involving wrongdoing for corporate crimes and greed.”
“Anthony Mace and Robert Zubiate played key roles in a massive bribery scheme that involved the payment of millions of dollars to public officials in exchange for lucrative oil-services contracts,” said Benczkowski. “Their actions rewarded corrupt officials’ greed and tilted the playing field against honest, law-abiding companies. Today they paid a heavy price for their crimes. Their sentences should serve as a warning to corporate executives everywhere: if you pay bribes to advance your business interests, we will catch you and we will prosecute you to the fullest extent of the law.”
“This case is a prime example of HSI’s enduring commitment to work closely with our foreign law enforcement partners to track down those who seek to gain an unfair competitive advantage in the international marketplace,” said Dawson. “By working together to hold these individuals accountable for their actions, we have taken a significant step to level the playing field for companies and consumers.”
In November 2017, Mace and Zubiate each pleaded guilty to one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA) in connection with a scheme to bribe foreign government officials in Brazil, Angola and Equatorial Guinea.
According to admissions made in connection with his plea agreement, Mace acknowledged that prior to his becoming CEO, other employees of SBM entered into an agreement to pay bribes to foreign officials including at Brazil’s state-controlled oil company, Petróleo Brasileiro S.A. (Petrobras); Angola’s state-owned oil company, Sociedade Nacional de Combustíveis de Angola, E.P. (Sonangol); and Equatorial Guinea’s state-owned oil company, Petroléos de Guinea Ecuatorial (GEPetrol). Mace admitted he joined the conspiracy by authorizing payments in furtherance of the bribery scheme and deliberately avoided learning that those payments were bribes.
In particular, Mace maintained a spreadsheet reflecting payments to five individuals. Mace acknowledged that even though he was aware there was a high risk those individuals were Equatorial Guinean officials, he nevertheless authorized SBM to make over $16 million in payments to those individuals. Mace further continued a practice that was instituted before he became CEO by splitting payments to SBM’s Brazilian intermediary, that is, paying a portion of the intermediary’s commission to an account in Brazil and another portion of the agent’s commission to accounts in Switzerland held in the name of shell companies. Mace deliberately avoided learning the ultimate recipients of the payments that he authorized to the shell companies were Petrobras officials, he admitted.
According to admissions made in connection with Zubiate’s plea, from between 1996 and 2012, Zubiate and others used a third-party sales agent to pay bribes to foreign officials at Petrobras in exchange for those officials’ assisting SBM and SBM USA with winning lucrative offshore oil projects from Petrobras. Zubiate also admitted engaging in a kickback scheme with the bribe-paying sales agent for SBM and its SBM USA.
In November 2017, SBM entered into a $238 million dollar, three-year deferred prosecution agreement with the United States over its role in the conspiracy, while its subsidiary, SBM USA, pleaded guilty to one count of conspiracy to violate the FCPA.
HSI and IRS-Criminal Investigation conducted the investigation. Assistant U.S. Attorney Suzanne Elmilady and Trial Attorney Dennis R. Kihm of the Criminal Division’s Fraud Section are prosecuting the case. The Criminal Division’s Office of International Affairs also provided substantial assistance in this matter.
The Department of Justice is grateful to Brazil’s Ministério Público Federal, the Netherlands Public Prosecution Service and Switzerland’s Office of the Attorney General and Federal Office of Justice for providing substantial assistance in gathering evidence during this investigation.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal-fraud/foreign-corrupt-practices-act.
Jury Convicts Houston Man for Carjacking and Related OffenseRead the Press Release
HOUSTON – A federal jury sitting in Houston has convicted a 35-year-old Houston man for carjacking and discharging a firearm during a crime of violence, announced U.S. Attorney Ryan K. Patrick. The jury deliberated for approximately three hours before convicting Sean Rodriguez following a less than three-day trial.
During the trial, the jury heard from victims who were carjacked at gunpoint. Both described how Rodriguez brandished a silver revolver and pointed it at them. Rodriguez had pistol-whipped the male victim, at which time the gun discharged above the man’s head.
A neighbor also provided testimony who explained how she helped the female victim after she ran to her house to call 911. The jury also heard that call.
The jury also heard from four police officers were involved in a high-speed chase after Rodriguez refused to pull over in the stolen vehicle three days later. The jury saw a helicopter video of the chase and the dash cam of one of the officers. During the chase, Rodriguez went the wrong way down streets at high rates of speed, nearly hit pedestrians and other vehicles before crashing into a family of six.
Chief U.S. District Judge Lee H. Rosenthal presided over the trial and set the sentencing for Jan. 4, 2019. At that time, Rodriguez faces up to 15 years in prison for the carjacking as well as a mandatory minimum of 10 years for the discharging of a firearm which must be served consecutively to any other prison term imposed.
The FBI, Texas Department of Public Safety, Houston Police Department, Harris County Institute of Forensic Science and Harris County Sherriff’s Office conducted the investigation. Assistant U.S. Attorneys Jennie Basile and Britni Cooper are prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Violent Armed Carjacker Ordered to Federal PrisonRead the Press Release
McALLEN – A 30-year-old Mexican man has been ordered to federal prison for two carjackings which occurred in early 2017, announced U.S. Attorney Ryan K. Patrick. Jorge Luis Almanza-Barcenas pleaded guilty to a six-count second superseding indictment on Sept. 28, 2017.
Today, U.S. District Judge Randy Crane ordered Jorge Luis Almanza-Barcenas to serve a total of 384 months plus one day in prison for the carjackings and related firearms offenses. Following his sentence, he is expected to face deportation proceedings as he is not a U.S. citizen.
Additional information was also presented today including a paraphrased statement form one of the victims in the case which noted her continued fear. Almanza-Barcenas was further ordered to pay $16,348.43 in restitution to the victims.
On March 27, and April 12, 2017, Almanza-Barcenas committed two armed carjackings in McAllen. He approached both female victims, who were sitting in their vehicles, and demanded them to relinquish their vehicles at gunpoint. Almanza-Barcenas pointed a 9mm caliber semiautomatic pistol at the victims’ heads and pulled them out of the vehicle, threatening to kill them. Thereafter, Almanza-Barcenas fled, obtaining the vehicle each time. .
Almanza-Barcenas will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI and McAllen Police Department conducted the investigation. Assistant U.S. Attorneys (AUSA) James Sturgis and David Paxton and former AUSA Lynn Wang prosecuted the case.
Texas Woman Sentenced in Virtual Kidnapping Extortion SchemeRead the Press Release
HOUSTON – A 35-year-old Houston woman has been ordered to prison following her conviction of one count each of conspiracy to commit wire fraud and conspiracy to commit money laundering, announced U.S. Attorney Ryan K. Patrick. Yanette Rodriguez Acosta aka Yanette Patino pleaded guilty Feb. 22, 2018.
Today, Chief U.S. District Judge Lee H. Rosenthal ordered Acosta to serve an 88-month sentence to be immediately followed by three years of supervised release. In handing down the sentence, the court noted that there was evil in the world and that the defendant had a gleeful disregard for the victims, causing pain, fear and long term effects for profit.
Acosta took part in a scheme in which her co-conspirators in Mexico called victims throughout the United States in Texas, California and Idaho, falsely claiming they had kidnapped a victim’s child. They demanded ransom money in exchange for the safe release of the child.
“This is a disgusting crime that preyed on a parent’s love for a child,” said Patrick. “Even though there was no actual kidnapping, the crime was designed to be very real to the victims. The perseverance and dedication of federal and state law enforcement agents and officers sends a strong message that we will not tolerate, and will zealously pursue, this kind of crime that terrorizes victims for financial gain.”
At the hearing today, victims detailed their harrowing and traumatizing experiences as they complied with the caller’s demands, who frequently threatened the victims and their family members with violence and retaliation if they reported the crime. The court also considered written victim impact statements. In one instance, a couple was informed that they could find their child at a nearby middle school. Not finding their son, and unable to get in touch with him, the couple then searched nearby dumpsters for the child’s body. Other victims described their loss of good health, sense of security, trust in others and the devastation and life-changing emotional trauma they experienced as a result of the crime.
“Virtual kidnapping schemes targeting American families are on the rise and those perpetrating the crime have perfected their techniques,” said Assistant Director in Charge Paul Delacourt, of the FBI's Los Angeles Field Office. “Victims of this terrifying scheme have experienced trauma, in addition to losing large sums of money. As the FBI and our partners continue to investigate these crimes and encourage the public to learn the signs of the scheme to avoid victimization, this sentencing should send a message to those perpetrating virtual kidnappings.”
“The sentence received by Acosta today represents a victory not just for the justice system, but for the many traumatized victims who received an intimidating phone call from the perpetrators of this heinous and cruel crime,” stated Special Agent in Charge R. Damon Rowe of IRS-Criminal Investigation (CI). “This investigation reflects IRS-CI’s steadfast commitment to protect our financial system from being used in an unscrupulous manner and hold accountable those who prey on the vulnerability of our relationships with our loved ones.”
The victims, who heard a gasping voice call for “mom” or “dad” on the phone, often responded with their child’s name, unaware that they were providing the caller with that information. Then, referring to the child by name, the caller claimed to have kidnapped the child, falsely leading the victim to believe there was an actual kidnapping.
Under threats of bodily harm, rape and murder of the child if the line were disconnected, many victims were forced to remain on speakerphone for hours while driving to banks and to various Western Union and MoneyGram locations. In some cases, victims were instructed to make cash drops at specified locations in Houston.
After confirming the wire transfer or money drop, the perpetrators instructed the victims to call the child, who had never been actually kidnapped, or to wait for the child at a specific location, knowing the child would not be there.
Previously released on bond, Acosta was taken into custody following sentencing today where she will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Los Angeles, California, Field Offices of the FBI and IRS-CI conducted the investigation along with the police departments in Los Angeles and Beverly Hills, California, and the Montgomery County, Texas, Sheriff’s Office with the assistance of Immigration and Customs Enforcement’s Homeland Security Investigations in Los Angeles.
Assistant U.S. Attorney Kate Suh is prosecuting the case. The Money Laundering and Asset Recovery Section of the Department of Justice also provided valuable assistance during the course of the investigation.
Texas A&M Research Foundation Pays $750,000 to Settle Claims Alleging Improper Charges to Federal GrantsRead the Press Release
HOUSTON – The Texas A&M Research Foundation (TAMRF) has agreed to pay the United States $750,000 to resolve claims that the Foundation submitted improper charges to federal grants, announced U.S. Attorney Ryan K. Patrick.
TAMRF is an independent non-profit service organization focused on facilitating research and development within the Texas A&M University System with its principal place of business in College Station. The Texas A&M University System is composed of 17 member institutions and agencies that are classified as institutions of higher education. TAMRF is a recipient of federal grants, cooperative agreements and contracts from various federal agencies, including the Department of Education (ED), Department of Energy (DOE), NASA, National Science Foundation (NSF) and Department of Transportation (DOT). In addition, TAMRF receives sub-wards and subcontracts under federal grants, cooperative agreements and contracts.
The settlement is the result of an investigation that began after a qui tam, or whistleblower, lawsuit was filed under seal on June 6, 2013. The whistleblowers are employed by TAMRF and alleged that during their employment they witnessed TAMRF allow personnel to ignore federal restrictions and permitted the overcharging of salaries, which inflated grant expenses. The whistleblowers also alleged TAMRF engaged in cost shifting; allowed academic employees to wrongfully receive longevity pay; violated salary caps; and improperly charged grants for expenses not incurred or not covered.
The United States investigated the allegations finding that from January 1, 2007 through November 3, 2016, TAMRF improperly charged additional compensation to federal grants for academic employees at an institution of higher education ineligible to receive such pay.
The United States also concluded that TAMRF improperly charged various federal grants for expenses not properly allocable to them, including salaries and wages for individuals not working on the grants and supplies and equipment unrelated to the grants. TAMRF also improperly charged various federal grants for unallowable costs such as travel expenses unrelated to the objectives of the grants or for unaffiliated parties not working on the grants.
“DOE - Office of Inspector General (OIG) is committed to ensuring the integrity of our grant recipients by holding accountable those who choose to engage in false claim and mischarging schemes,” said Acting Inspector General April G. Stephenson of DOE. “This settlement is the result of a joint investigation which protected the government from inflated claims. We appreciate the efforts of the Department of Justice in pursuing this matter and will continue to work collaboratively with our investigative partners to aggressively investigate those who seek to defraud government programs.”
“NASA-OIG will continue to investigate all Qui Tam relator allegations of fraud, and applaud the relators that brought this matter to the attention of the United States,” said NASA Inspector General Paul Martin. “NASA-OIG appreciates the cooperative efforts of the entire investigative team during this investigation.”
“The funding NSF provides to our nation’s universities is vital to NSF’s mission of promoting the progress of science, but universities must do their part to ensure that these funds are spent on legitimate costs that directly benefit these awards,” said NSF Inspector General Allison Lerner. “NSF-OIG is committed to vigorously pursuing oversight of these taxpayer funds and I commend the U.S. Attorney’s Office and our investigative partners for their strong support in this effort.”
“Today’s settlement demonstrates that ensuring the integrity of DOT research grant programs is a top priority for the DOT-OIG,” said Regional Special Agent-in-Charge Joseph Zschiesche of DOT-OIG. “Working with our federal law enforcement and prosecutorial colleagues, we will continue to protect taxpayers’ investment in our nation’s infrastructure from fraud, waste, abuse and violations of law.”
Under the False Claims Act, a private party, known as a relator, can file an action on behalf of the United States and receive a portion of the recovery. In this case, the relators will receive $142,500.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
The U.S. Attorney’s Office (USAO) jointly conducted the investigation along with ED, DOE, NASA, NSF and DOT. Assistant U.S. Attorney Jill Venezia handled the matter for the USAO.
Physician and Two Clinic Operators Found Guilty for Their Roles in $17 Million Medicare Fraud SchemeRead the Press Release
A federal jury found a physician and two clinic owners and operators guilty yesterday for their roles in a $17 million Medicare fraud scheme.
Assistant Attorney General Brian A. Benczowski of the Justice Department’s Criminal Division, U.S. Attorney Ryan Patrick of the Southern District of Texas, Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office, 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 and the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU) made the announcement.
John P. Ramirez (Ramirez), M.D., 64; Ann Nwoko Shepherd (Shepherd), 62; and Yvette Nwoko (Nwoko), 30, all of Houston, Texas, were convicted of one count of conspiracy to commit health care fraud after a six-day trial. In addition, Nwoko was convicted of three counts of health care fraud, Shepherd was convicted of six counts of health care fraud and Ramirez was convicted of three counts of false statements relating to health care matters. Sentencing is scheduled for Dec. 12 before U.S. District Judge David Hittner of the Southern District of Texas, who presided over the trial.
According to evidence presented at trial, from approximately December 2011 to August 2015, Ramirez, Shepherd and Nwoko conspired and schemed to defraud Medicare out of payments for medical services. Shepherd owned and operated Southwest Total Medical Inc., a purported medical clinic doing business as Amex Medical Clinic in Houston. Shepherd sold medical orders and other documents signed by Ramirez to home-health agencies in and around Houston. Ramirez falsely certified in these medical orders information about the patient’s medical condition and need for medical services. Co-conspirators at home-health agencies then used the false and fraudulent paperwork signed by Ramirez and sold by Shepherd to bill and receive payment from Medicare for medical services that were not medically necessary or not provided. Later in the conspiracy and scheme, Nwoko acted as the manager of Amex Medical Clinic where she too sold false and fraudulent paperwork used by co-conspirators to bill and receive payment from Medicare for similarly unnecessary medical services, the evidence showed. Shepherd also caused Amex Medical Clinic to bill Medicare for purported physician services that were actually provided by an unlicensed practitioner, if at all, the evidence showed.
In all, Ramirez, Shepherd and Nwoko caused Medicare to pay approximately $17 million on false and fraudulent claims submitted during the charged conspiracy, the evidence showed.
This case was investigated by the FBI, HHS-OIG and the Texas Attorney General’s Medicaid Fraud Control Unit. Trial Attorney Scott Armstrong of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Tina Ansari of the Southern District of Texas are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in 12 cities across the country, 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.
Business Executive Pleads Guilty to Foreign Bribery Charge in Connection with Venezuelan Bribery SchemeRead the Press Release
HOUSTON – A former manager of a U.S.-based logistics and freight forwarding company pleaded guilty to a foreign bribery charge today for his role in a scheme to corruptly secure contracts and contract extensions from Venezuela’s state-owned and state-controlled energy company, Petroleos de Venezuela S.A. (PDVSA). The guilty plea of the bribed foreign official was also unsealed today.
U.S. Attorney Ryan K. Patrick of the Southern District of Texas, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Special Agent in Charge Mark Dawson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations’ (HSI) Houston Field Office made the announcement.
Juan Carlos Castillo Rincon (Castillo), 55, of Conroe, previously of Miami, Florida, pleaded guilty before U.S. Magistrate Judge Nancy K. Johnson of the Southern District of Texas in Houston to one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA). Castillo is scheduled to be sentenced Feb. 21, 2019 by U.S. District Judge Gray H. Miller of the Southern District of Texas.
Judge Johnson also unsealed the guilty plea of Jose Orlando Camacho (Camacho), 46, of Miami, Florida, previously of Katy, the PDVSA official whom Castillo bribed. In July 2017, Camacho pleaded guilty under seal before Judge Miller to conspiracy to commit money laundering. Camacho is scheduled to be sentenced Feb. 21, 2019 by Judge Miller.
“These guilty pleas reflect the hard work of agents and investigators and mark another step in the joint effort to combat foreign corruption,” said U.S. Attorney Patrick. “Our office will continue to prosecute those who bribe foreign officials or use our financial networks to launder the proceeds of these bribes.”
“Corruption undermines the rule of law, tilts the playing field away from law-abiding businesses, and exposes our financial system to the distorting effects of illicit cash flows,” said Assistant Attorney General Benczkowski. “The guilty pleas announced today are the latest in a series of actions arising out of an ongoing investigation of bribery at PDVSA. The Department will continue to combat corruption wherever we find it.”
“Foreign bribery schemes like this pose a significant threat to the public trust and fair trade practices,” said HSI Houston Special Agent in Charge Dawson. “Today’s pleas are a step in the right direction, but we will continue to aggressively investigate individuals and corporations who violate the FCPA to ensure a fair and equal playing field for U.S. companies and consumers.”
Castillo was arrested in Miami on April 19, after a federal grand jury returned a five-count indictment against him. According to admissions made in connection with Castillo’s plea, beginning in or around 2011 and continuing through at least 2013, Castillo, a manager at a Houston-based logistics and freight forwarding company, conspired with others to bribe a PDVSA official in exchange for the official providing assistance in connection with the company’s business with PDVSA. In exchange for bribe payments, the PDVSA official assisted the company in obtaining PDVSA contracts, contract extensions and favorable contract terms; provided Castillo with inside information concerning the PDVSA bidding process; and supported the company in internal PDVSA meetings regarding purchasing decisions.
As part of his guilty plea, Camacho admitted that while employed by PDVSA or its wholly owned subsidiaries or affiliates, he accepted bribes from Castillo and the logistics and freight forwarding company for which Castillo was a manager in exchange for taking certain actions to assist the company in its business with PDVSA. Camacho also admitted he conspired with Castillo to launder the proceeds of the bribery scheme.
As part of their plea agreements, both Castillo and Camacho have agreed to forfeit the proceeds of their criminal activity.
With Castillo’s plea today and the unsealing of Camacho’s plea, the Justice Department has announced charges against 18 individuals, 14 of whom have pleaded guilty, as part of a larger, ongoing investigation by the U.S. government into bribery at PDVSA. The HSI Houston Field Office is conducting the ongoing investigation with assistance from HSI in Boston and from IRS Criminal Investigation. Assistant U.S. Attorneys John P. Pearson and Robert S. Johnson and Trial Attorneys Jeremy R. Sanders and Sarah E. Edwards of the Criminal Division’s Fraud Section are prosecuting the case. Assistant U.S. Attorney Kristine Rollinson is handling the forfeiture aspects of the case.
The Criminal Division’s Office of International Affairs and the Cayman Islands’ Office of the Director of Public Prosecutions also provided assistance.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa
Another Significant Sentence Imposed for Sexually Exploiting a ChildRead the Press Release
HOUSTON – Another local man is headed to federal prison for producing child pornography, announced U.S. Attorney Ryan K. Patrick. Houston resident Miguel Alejandro Morales-Garcia pleaded guilty Feb. 7, 2018.
Today, District Judge David Hittner sentenced a to 327 months in prison to 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. He will also be ordered to register as a sex offender.
The more than 27-year-sentence comes a day after a suburban man received 35 years also for sexually exploiting a child as well as possessing child pornography.
The investigation into Morales began when an agent with Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), acting in an undercover capacity, entered an online chat room. At that time, the agent observed a user, later identified as Morales, stream a live video of what appeared to be a minor female who was three to five years of age. The minor was watching a video or show on a tablet with a blue case while wearing white ear bud style headphones. Within seconds, the camera angle panned to the right and showed Morales masturbating. The distance between Morales and the minor victim appeared to be a few inches and the only thing separating Morales and the minor victim was a small brown pillow.
Through the investigation, agents identified the minor victim as being a relative of Morales. Agents performed a forensic examination on his iPhone pursuant to a federal search warrant and discovered images of Morales engaging in sexual contact with the minor victim.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
HSI conducted the investigation.
Assistant U.S. Attorney Kimberly Ann Leo prosecuted the case which was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Kingwood Resident Gets 35 Years for Sexual Exploitation of a ChildRead the Press Release
HOUSTON - A 43-year-old Kingwood resident has been ordered to federal prison for the sexual exploitation of a minor and possession of child pornography, announced U.S. Attorney Ryan K. Patrick. Stephen P. Lynch pleaded guilty June 6, 2018.
Today, District Judge Nancy F. Atlas sentenced Lynch to 360 months for sexual exploitation and five years for the possession charges, respectively. The sentences will run consecutive for a total of 35 years in federal prison. The sentence will be immediately followed by five 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. He will also be ordered to register as a sex offender.
At the sentencing today, Judge Atlas heard from the victim’s mother and sibling. They informed the court how Lynch’s actions have scarred their family for life, changed how they viewed the world and stole their sense of security.
The court considered the length of time the production occurred. The court also heard that the images are known to be in at least 222 collections of other individuals.
The investigation into Lynch began when Homeland Security Investigations (HSI) agents received information via the HSI Cyber Crimes Center regarding a referral from the National Center for Missing and Exploited Children (NCMEC). The referral advised that an unidentified female minor victim of a child pornography related offense was possibly located in the area of Houston. The child had appeared in a series of child sexual abuse images that were known to domestic and international law enforcement and had been traded over a period of two years. With the identity and whereabouts of the victim unknown, NCMEC analysts enlisted help from a horticulture expert from the Smithsonian Museum of Natural History. He was able to narrow the geographical possibilities for the victim based on plant life in the background of images. With the search narrowed to 10 states, HSI analysts then focused on visible background items in the images. After extraordinary analytical efforts, the investigation let to Kingwood. Investigators searched local parks, dance studios, gyms and other venues for leads. After an exhaustive effort, authorities the suspect was located and the victim was rescued.
Approximately 173 images were included in the referral sent to HSI Houston. At least half of the images constitute child pornography under federal law. Some of the images depict the minor victim fully nude with the child’s genitalia lasciviously displayed.
On the evening of June 14, 2017, HSI agents identified the victim at a residence in Kingwood. At that time, they interviewed the homeowner, Lynch and he identified two non-pornographic images of the minor victim. He further stated that he personally took one of those images several years ago when she was three-years-old. He identified himself as the photographer of several non-pornographic images of the minor victim, including one that displays the minor relative wearing a black long-sleeve shirt with a pink glitter heart on the front. Several child pornographic images of the victim also include what appears to be that same shirt.
In the early morning hours of June 15, 2017, agents obtained a federal search warrant for Lynch’s residence. While authorities were obtaining the search warrant, Lynch went back into the house and destroyed thumb drives by putting them in the microwave. He also attempted to delete items off of a laptop.
He was arrested June 19, 2017, in Georgetown.
A forensic examination was performed on all of the items seized. During that review, agents found approximately 38 videos and five images of child pornography. The images and videos include children under the age of 12 and acts of violence such as the penetration of the victims. Some of the images are of known victims as identified through the NCMEC.
Further, agents found 71 images of the minor victim which constitute child pornography that Lynch produced by the defendant. To date, the images of this minor has been found in 222 other investigations and on the dark web.
Homeland Security Investigations conducted the investigation with the assistance of Montgomery County Constable Precincts 2 and 4, Harris County Sheriff’s Office, Conroe Police Department and the Smithsonian Gardens in Washington, DC.
Assistant U.S. Attorney Kimberly Leo prosecuted the case.
This case 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."
Two Sentenced in Bank Fraud SchemeRead the Press Release
HOUSTON – Three Houston residents have been ordered to federal prison for perpetrating a scheme to obtain two loans totaling $1.3 million, announced U.S. Attorney Ryan Patrick along with Special Agent-in-Charge Laurie L. Younger of the Federal Deposit Insurance Corporation – Office of Inspector General (FDIC-OIG). Hugo Lafuente, 59, pleaded guilty Aug. 29, 2016, while Rick Hajdik, 54, pleaded guilty Nov. 14, 2016.
Today, U.S. District Judge Keith Ellison, who accepted the guilty pleas, handed Lafuente a 25-month sentence, while Hajdik was ordered to serve a 20-month sentence. Each was further ordered to pay $735,758 in restitution.
“The FDIC-OIG, along with its law enforcement partners, is dedicated to pursuing those who commit schemes to defraud the nation’s federally insured financial institutions,” said Younger.
With the help of a tax preparer, Lafuente, and Hajdik devised a scheme to fraudulently obtain two loans from a local bank. The first was a Small Business Administration loan made to Lafuente for $250,000 and the second was a construction loan for $1,080,000.
The bank approved and funded both loans based on fraudulent and falsified income tax returns and false information in Lafuente’s personal financial statements. Hajdik, who was Lafuente’s loan officer at the bank, came up with the inflated and false numbers that Lafuente needed to show on his income tax returns in order to obtain the loans.
Both loans defaulted and the bank’s loss from the two loans after sale of land collateral was $735,758.
The FDIC-OIG and The Office of the Special Inspector General for the Troubled Asset Relief Program conducted the investigation. Assistant U.S. Attorney Belinda Beek is prosecuting the case.
Two Young Men Admit Role in Deadly Transporting CaseRead the Press Release
LAREDO, Texas – Two Mexican nationals have pleaded guilty for their roles in an alien transporting event which resulted in death, announced U.S. Attorney Ryan K. Patrick.
Mario Emiliano-Herrera and Julio Cesar Lopez-Nino, both 19, admitted they hoped to be paid $100 in exchange for each person successfully smuggled across the Rio Grande River and into the United States.
Emiliano-Herrera and Lopez-Nino were originally arrested Feb. 27, 2018, after Border Patrol (BP) agents encountered them leading a group of undocumented aliens through the brush in Laredo. Nine were ultimately apprehended, two of whom included Emiliano-Herrera and Lopez-Nino.
Law enforcement learned one of the aliens had passed out and had been left behind and attempted to retrace the group’s steps to no avail.
On March 7, 2018, a ranch foreman notified authorities that a body was found on the property just 1.5 miles north of the Rio Grande River. The deceased male was identified as part of the group Emiliano-Herrera and Lopez-Nino lead. According to witnesses, the victim could no longer keep up with the group, at which time Lopez-Nino kicked him repeatedly and left him behind.
Sentencing will be set at a later date before U.S. District Judge Marina Garcia Marmolejo. Emiliano-Herrera and Lopez-Nino each face up to life in federal prison and a possible $250,000 fine. They remain in custody pending that hearing.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation along with BP. Assistant U.S. Attorney Giselle S. Guerra is prosecuting the case.
Illegal Alien Sent to Federal Prison for Trying to Drown Federal AgentRead the Press Release
A 31-year-old Illegal alien residing in Ciudad Hidalgo, Michoacan, Mexico, has been ordered to prison following his conviction of assaulting a Border Patrol (BP) agent during his attempt to illegally enter the country, announced U.S. Attorney Ryan K. Patrick. Edgar Garrido-Miranda pleaded guilty Dec. 5, 2017.
Today, U.S. District Judge Marina Garcia Marmolejo ordered him to prison for 60 months and ordered restitution in the amount of $4,788.79. At the hearing, the court heard that this was not an accidental act on Garrido-Miranda's part. She sternly him warned him that things could have gone very wrong, including being shot. Not a U.S. citizen, he is expected to face deportation proceedings fooling his sentence.On Aug. 16, 2017, BP agents encountered a group of undocumented aliens near the Zacate Creek area in south Laredo. Garrido-Miranda was a member of that group. Law Enforcement attempted to arrest him, at which time Garrido-Miranda became combative.
During the struggle, Garrido-Miranda held one of the BP agents under water until a second agent came to his rescue.
At the hearing today, the court noted the BP agent's restraint in not resorting to deadly force under the circumstances.
The victim suffered bruises and contusions as well as a throat infection as a result of the encounter.
Garrido-Miranda 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 BP. Assistant U.S. Attorney José Angel Moreno prosecuted the case.Robstown-Based Heroin Leader Heads to Federal PrisonRead the Press Release
CORPUS CHRISTI, Texas – The leader of a massive heroin and money laundering conspiracy has been ordered to federal prison, announced U.S. Attorney Ryan K. Patrick. Jesus Gutierrez, 46, of Corpus Christi, pleaded guilty April 26, 2018, to conspiracy to possess with intent to distribute more than one kilogram of heroin and conspiracy to launder money.
Today, U.S. District Judge Nelva Gonzales Ramos sentenced him to 84 months in prison.
At the time of his plea, the court learned that he had been part of a significant, long-term heroin distribution ring operating in Robstown. Evidence also showed that on Oct. 4, 2017, authorities seized approximately a kilogram of heroin and almost $100,000 during the arrests related to this investigation.
Gutierrez and his nephew, Enrique Gutierrez Jr., regularly obtained kilogram quantities of heroin during the conspiracy that was then distributed via the other defendants. The overall scope of the conspiracy was estimated to be between 10-30 kilograms of heroin. The conspiracy operated between April 2016 and October 2017.
On May 9, 2018, Judge Ramos sentenced Enrique Gutierrez Jr., 31, of Sandia, to 13 years imprisonment. He had previously pleaded guilty to the same heroin conspiracy as well as conspiracy to launder money.
Also previously sentenced were Sakhone Chanrattana, 35, of Jarrell, who was ordered to serve 97 months, and Tim Molina, 34, of Robstown, who received a sentence of 18 months.
In assessing the sentences, Judge Ramos pointed to the large amount of heroin distributed in this conspiracy and its devastating impact on the community and families.
The Drug Enforcement Administration and the Texas Department of Public Safety conducted the investigation. Assistant U.S. Attorney Jon Muschenheim is prosecuting the case.
Five Charged in Fraud Schemes Linked to Hurricane HarveyRead the Press Release
HOUSTON ‐ A total of six Houston-area residents have been charged with varying offenses related to disaster assistance in their alleged efforts to defraud the Federal Emergency Management Agency (FEMA) and Small Business Administration (SBA).
U.S. Attorney Ryan K. Patrick made the announcement just after the Gulf Coast region marked the one-year anniversary of Hurricane Harvey, the costliest storm in United States history.
“These types of cases are no different than looting during and after a storm,” said Patrick. “Some people try to exploit natural disasters by taking things that aren’t theirs. It is white collar storm looting, and fewer people who actually need assistance get it.”
Five are charged in separate indictments linked to Hurricane Harvey with a sixth stemming from the Houston-area Memorial Day weekend flood in 2015.
The first indictment charges Clinton Booker, 51, of Houston, with engaging in a scheme to defraud the SBA when he applied for and received a disaster loan from the SBA. He allegedly claimed property damage from Hurricane Harvey in August 2017, but his residence had not sustained damage as claimed. According to the indictment, Booker submitted or caused others to submit falsified records to make the claim appear legitimate. Booker received $25,000 from the fraudulent SBA loan. He is charged with one count of fraud in connection with a major disaster and one count of wire fraud for which he faces up to 30 and 20 years in federal prison, respectively.
In a separate, but similar case, Randal Radack, 44, of Spring, allegedly engaged in a scheme to defraud the SBA and FEMA when he applied for and received disbursements, claiming property damage from Hurricane Harvey. However, he actually he did not reside at the property during Hurricane Harvey as claimed, according to the allegations. Radack allegedly received $115,100 from the fraudulent SBA loan and $16,541.38 in fraudulent disbursements from FEMA. Radack is charged with two counts of fraud in connection with a major disaster and five counts of wire fraud for which he faces up to 30 and 20 years in federal prison, on each count, respectively.
According to additional allegations, Humble resident Robert Kaitho, 55, also engaged in a scheme to defraud the SBA. He applied for and received a disaster loan from the SBA, claiming property damage from Hurricane Harvey when his residence had not sustained damage as claimed. According to the indictment, Kaitho used some of the proceeds from the fraudulent SBA loan to pay a credit card company. Kaitho received $53,000 from the fraudulent SBA loan, according to the charges. He is charged with one count of fraud in connection with a major disaster, two counts of wire fraud and two counts of money laundering. If convicted of the disaster fraud, he faces up to 30 years in prison, while wire fraud and money laundering carry a punishment of up to 20 and 10 years in federal prison, respectively.
Christopher Howard, 45, of Highlands Ranch, Colorado, did not even reside at his Crosby property at the time of Hurricane Harvey. Nevertheless, he allegedly applied for and received FEMA disbursements, claiming property damage. Howard received $30,586.45 in fraudulent disbursements from FEMA as a result of the claim, according to the allegations. He is charged with one count of fraud in connection with a major disaster and four counts of wire fraud for which he faces up to 30 and 20 years in federal prison, respectively.
Patricia Rodriguez, 38, of Houston, also allegedly engaged in a scheme to defraud when she applied for and received FEMA disbursements, claiming property damage from Hurricane Harvey. She was not even the owner of the property as claimed, according to the indictment. However, Rodriguez allegedly received $33,300 in fraudulent FEMA disbursements. She also faces a maximum of 30 and 20 years in federal prison, respectively, upon conviction of one count each of fraud in connection with a major disaster and wire fraud.
The final indictment alleges David Boniface claimed property damage from the Memorial Day flood in 2015, when his residence had not sustained damage as he had reported. Boniface, 60, of League City, applied for and received a disaster loan from the SBA totaling $64,200. He submitted or caused others to submit falsified records to make the claim appear legitimate. Boniface is charged with one count of fraud in connection with a major disaster and two counts of wire fraud which carry 30 and 20-years maximum federal prison terms, respectively.
“Fraud cases take time to investigate,” Patrick explained. “One year after the storm my office is actively engaged with DHS and other agencies in similar investigations. This is just the first of what will probably be many cases related to Hurricane Harvey.”
All six people charged today are expected to make their initial appearances before a U.S. magistrate judge in the near future.
The SBA-Office of Inspector General (OIG) and the Department of Homeland Security –OIG conducted the investigations. Assistant U.S. Attorney Michael Day is prosecuting the cases.
Members of the public are reminded to apply a critical eye and do their due diligence before trusting anyone purporting to be working on behalf of disaster victims and before giving contributions to anyone soliciting donations on behalf of disaster victims as well as being extremely cautious before providing personal identifying or financial information to anyone, especially those who may contact you after a natural disaster. Solicitations can originate from e-mails, websites, door-to-door collections, mailings and telephone calls, and similar methods. Members of the public who suspect fraud, waste, abuse or allegations of mismanagement involving disaster relief operations, or believe they have been the victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, should contact the National Disaster Fraud Hotline toll free at (866) 720-5721. The telephone line is staffed by live operators 24 hours a day, seven days a week. You can also fax information to the Center at (225) 334-4707 or email it to [email protected] (link sends e-mail). Learn more about the NCDF at www.justice.gov/disaster-fraud and watch a public service announcement here. Tips for the public on how to avoid being victimized of fraud are at https://www.justice.gov/opa/pr/tips-avoiding-fraudulent-charitable-contribution-schemes.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Houston Psychiatrist Sentenced to More Than 12 Years in Prison for Role in $155 Million Medicare Fraud SchemeRead the Press Release
A Houston psychiatrist was sentenced today to 150 months in prison for his role in a $155 million Medicare fraud scheme involving false and fraudulent claims for psychiatric 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, 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, Special Agent in Charge D. Richard Goss of IRS Criminal Investigation’s (IRS-CI) Houston Field Office, Special Agent in Charge Kristin Osswald of the Railroad Retirement Board Office of Inspector General’s (RRB-OIG) Chicago Regional Office, and Unit Division Chief Stormy Kelly of the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU) made the announcement.
Riyaz Mazcuri, 67, a former attending psychiatrist at Riverside General Hospital (Riverside) of Houston, was sentenced by U.S. District Judge Vanessa D. Gilmore of the Southern District of Texas. Judge Gilmore also ordered Mazcuri to pay $20,607,410.22 in restitution to Medicare and $2,250,789.69 in restitution to Medicaid.
On May 23, 2017, following a five-day trial, a jury convicted Mazcuri of one count of conspiracy to commit health care fraud, and five counts of health care fraud.
According to the evidence at trial, from 2006 until February 2012, Mazcuri and others engaged in a scheme to defraud Medicare by submitting to Medicare, through Riverside, approximately $155 million in false and fraudulent claims for partial hospitalization program (PHP) services. A PHP is a form of intensive outpatient treatment for patients with severe mental illness.
In addition, evidence presented at trial showed that Mazcuri indiscriminately admitted and readmitted patients into these intensive psychiatric programs – often for years on end – many of whom suffered from severe Alzheimer’s or dementia and were unable to participate in the treatment purportedly provided at the PHPs, and who therefore did not qualify for the services. Evidence also showed that Mazcuri falsified medical records and signed false documents to make it appear as if patients admitted to the PHPs qualified for, required, and actually received the intensive psychiatric services.
Evidence also demonstrated that Mazcuri personally billed Medicare for psychiatric treatment he purportedly provided to Riverside’s PHP patients – treatment he never actually provided. Mazcuri’s signature on patient documents enabled Riverside to bill Medicare for over $55 million of the total $155 million that Riverside billed Medicare for fraudulent psychiatric services, the evidence showed.
To date, 15 others have been convicted of offenses based on their roles in the fraudulent scheme, including Earnest Gibson III, 73, the former president of Riverside; Earnest Gibson IV, 41, the operator of one of Riverside’s PHP satellite locations; Regina Askew, 53, a group home owner and patient file auditor; and Robert Crane, 61, a patient recruiter, all of whom were convicted after a jury trial in October 2014. Earnest Gibson III was sentenced to 45 years in prison. Earnest Gibson IV was sentenced to 20 years in prison. Regina Askew was sentenced to 12 years in prison. Robert Crane was sentenced to serve 30 months in prison. Mohammad Khan, 68, an assistant administrator at the hospital, who managed many of the hospital’s PHPs, pleaded guilty and was sentenced to 40 years in prison. Sharon Iglehart, 61, a physician, was also convicted after a jury trial in August 2015. She was sentenced to 12 years in prison. Walid Hamoudi, 66, a physician, pleaded guilty in August 2015. He was sentenced to five years in prison.
The case was investigated by the FBI, HHS-OIG and IRS-CI with assistance by RRB-OIG and MFCU. The case was prosecuted by former Assistant Chief Ashlee Caligone McFarlane and Trial Attorneys Aleza Remis and Kevin Lowell of the Criminal Division’s Fraud Section.
The Medicare Fraud Strike Force operations are part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. The Medicare Fraud Strike Force operates in 10 areas nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,500 defendants who collectively have falsely billed the Medicare program for over $12.5 billion.
Edinburg Man Sentenced for Ramming BP AgentRead the Press Release
McALLEN, Texas – A 24-year-old Edinburg resident has been ordered to federal prison following his convictions for alien smuggling and assaulting a federal agent, announced U.S. Attorney Ryan K. Patrick. Victor Eduardo Acevedo-Ventura pleaded guilty Dec. 28, 2017.
Today, U.S. District Judge Micaela Alvarez handed Acevedo-Ventura a sentence of 50 months in prison to be followed by three years of supervised release. In handing down the sentence, Judge Alvarez noted Acevedo-Ventura’s dangerous actions in ramming the Border Patrol (BP) agent’s vehicle and that this wasn’t his first time fleeing from law enforcement officers.
On Oct. 24, 2017, BP pulled over Acevedo-Ventura just south of the Falfurrias checkpoint. Authorities discovered he had just smuggled and dropped off six illegal aliens in order to bypass the checkpoint through the brush. Acevedo-Ventura initially complied with BP and pulled to the side of the road.
However, almost immediately thereafter, he fled at approximately 75 mph. Three Border Patrol agents pursued him. Acevedo-Ventura then slammed the Expedition he was driving into the lead agent’s patrol vehicle twice, before spinning out of control and leaving both vehicles with substantial damage.
At the hearing today, the court stated how fortunate Acevedo-Ventura was that he didn’t severely injure the agent. Judge Alvarez noted that did not diminish the seriousness of his conduct.
Acevedo-Ventura had been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
BP and the FBI conducted the investigation. Assistant U.S. Attorney David A. Lindenmuth prosecuted the case.
Accountant Sentenced for Tax Evasion and FraudRead the Press Release
CORPUS CHRISTI, Texas – A 35-year-old former Corpus Christi resident has been ordered to prison for wire fraud and tax evasion, announced U.S. Attorney Ryan K. Patrick. Brian Perez pleaded guilty March 1, 2018.
Today, U.S. District Judge Nelva Gonzales Ramos handed Perez an 18-month sentence to be immediately followed by three years of supervised release. He was also ordered to pay $162,755 in restitution to his employer and an additional $42,435.18 in criminal restitution to the IRS. At the hearing, Assistant U.S. Attorney (AUSA) Robert Thorpe detailed prior thefts from a previous employer and additional thefts from another corporation affiliated with his current victim.
Perez’ family members testified about his lack of criminal history and made pleas for probation. However, the court noted such a sentence was not appropriate as there was a significant amount of loss and harm to multiple victims occurring over several years.
The court also ordered that funds fraudulently transferred to Perez’ tax withholding account at the IRS as part of the scheme be returned to victims. His tax refunds during his period of incarceration and supervised release will also be used to pay restitution to his victims.
Perez, now of San Antonio, was a Certified Public Accountant. As part of his plea, Perez admitted that while working as a bookkeeper, he orchestrated the fraudulent transfer of funds from his employer’s bank account to his personal tax withholding account. Perez also admitted he filed a false income tax return and requested a refund of the overpayment.
Through this scheme, Perez defrauded his employer of $162,755 between March 9, 2015, and Aug. 7, 2015.
IRS-Criminal Investigation and the FBI conducted the investigation. Assistant U.S. Attorney Robert D. Thorpe Jr. is prosecuting the case.
Local Woman Heads to Prison for Defrauding Federal Program Intended to Improve Air QualityRead the Press Release
HOUSTON – A 45-year-old woman has been ordered to prison on for charges related to defrauding the Federal Highway Administration Congestion mitigation Air Quality and Surface Transportation Program (FHWA-CMAQ), announced U.S. Attorney Ryan K. Patrick along with Special Agent in Charge Joseph Zschiesche of the Department of Transportation - Office of Inspector General (DOT-OIG). The jury deliberated for less than two hours following a two-day day trial before convicting Shonda Renee Stubblefield Feb. 28, 2018, of all the counts in the indictment - theft of public money, mail fraud, wire fraud, money laundering and aggravated identity theft.
Today, U.S. District Judge Alfred Bennett handed Stubblefield a total 72-month sentence - 48 months for theft, mail fraud, wire fraud and money laundering to be followed by an additional 24 months for aggravated identity theft which will be served consecutively. She will also serve three years of supervised release following her release.
At trial, a federal jury found Stubblefield, the owner of World Corporation Inc. (WCI)., stole $125,659.90 from the Department of Transportation (DOT) CMAQ program funded by the Federal Highway Administration (FHWA).
The CMAQ Program provides money to reduce traffic congestion and thereby reduce air pollution in certain areas. The jury heard that Stubblefield stole the money by falsely and fraudulently representing to Houston Galveston Area Counsel (HGAC) that she had hundreds of employees working at WCI who participated in a telework program designed to reduce air-pollution.
The United States proved at trial through documents and 26 witnesses that Stubblefield created a fake business list, fake bank records, fake income and earnings statements and other false WCI business records including employee timesheets, invoices and match documents. The testimony included that of an individual whose identification information Stubblefield stole and used to create a fake $18,100 check that was submitted to the government to further the theft. The evidence and testimony revealed Stubblefield created at least 500 fake and fictitious WCI employee profiles that included fake names, addresses and email accounts.
The defense attempted to convince the jury that Stubblefield was not the person who engaged in the criminal activity, despite the fact that her name was on virtually all WCI business records, at least four witnesses identified her and the money trail lead directly to Stubblefield’s bank account.
Stubblefield 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 DOT-OIG conducted the investigation. Assistant U.S. Attorneys Julie Redlinger and Michael Day prosecuted the case.
Waste Management to Forfeit $5.5 Million for Hiring Illegal AliensRead the Press Release
HOUSTON – Waste Management Texas has entered into a non-prosecution agreement with the government based upon a pattern and practice of hiring illegal aliens at the company’s Houston location, announced U.S. Attorney Ryan K. Patrick along with Special Agent in Charge Mark Dawson of Immigration and Customs Enforcement’s Homeland Security Investigations (HSI).
Waste Management Inc. is North America’s leading provider of waste disposal and collection headquartered in Houston. The company serves nearly 20 million municipal, commercial, industrial and residential customers. Waste Management of Texas employed at least three managers at its Afton location who actively encouraged and induced aliens to work illegally between 2003 and April 2012.
The five-year HSI investigation resulted in the execution of search warrants in April 2012 where authorities discovered 16 illegal aliens at the Afton location with at least 100 employees in company records verified as fraudulently documented or using an identity that did not belong to them.
“The non-prosecution agreement requires Waste Management to continue its substantial remedial measures to address all past immigration violations and forfeit more than $5.5 million in proceeds gained from hiring an illegal workforce at the Afton location,” said Patrick. “In considering whether to enter into such agreements, we must take into account the collateral consequences that a criminal prosecution would have on the company’s contracts with many municipalities across the country and the thousands of employees for the conduct of three managers at one operating unit in Houston.”
“Federal law requires employers to hire only U.S. citizens and aliens who are authorized to work in the country,” said Dawson. “This company hired manual laborers with little or no regard for their legal status for almost 10 years at their Afton location. Today, they paid a substantial price for that conduct. We will continue to vigorously enforce immigration law where we find employers engaging in a pattern or practice of hiring unauthorized individuals in reckless disregard of the law.”
Waste Management of Texas hired various staffing agencies to provide contract laborers. Many were hired or rehired at the Afton location in reckless disregard of the fact that they were not authorized to work. The undocumented workforce allowed the company to maintain their preferred helper workforce to maximize profits and productivity. The estimated proceeds to the company derived from this conduct at the Afton location is $5,527,091.55, the amount forfeited to the United States today.
Managers at the Afton location fired at least 10 employees in January 2012 because they lacked documentation. The aliens were told to assume the identity of actual U.S. citizens or individuals with legal status in order to work there. Managers also engaged in an identity theft scheme providing the terminated aliens with names and identifiers of actual individuals with status in the United States to allow the illegal aliens to be employed and added to the company’s payroll.
A federal grand jury indicted three managers in May 2014 for engaging in a conspiracy between 2008 and 2012 to induce and encourage unlawful immigration through a scheme to employ undocumented aliens as helpers on waste trucks picking up garbage in and around Houston. All were convicted and received sentences of 27 - 94 months.
Waste Management of Texas cooperated with the government’s criminal investigation and conducted their own internal investigation. They determined the managers at their Afton location intentionally thwarted pre-existing immigration compliance procedures that have since been enhanced to prevent future hiring of unauthorized aliens seeking employment by fraud or identity theft.
HSI conducted the long-term investigation. Assistant U.S. Attorneys Casey N. MacDonald, Douglas Davis and Edward Gallagher prosecuted the case and negotiated the non-prosecution agreement with the company.
Illegal Alien Admits to Human SmugglingRead the Press Release
CORPUS CHRISTI, Texas – A Mexican National illegally in the United States has entered a guilty plea to attempting to smuggle four illegal aliens through the brush which resulted in death, announced U.S. Attorney Ryan K. Patrick.
Sergio Daniel Barba-Rayo, 27, pleaded guilty to conspiring to move an alien illegally in the United States.
Barba-Rayo was guiding a group of illegal aliens around the U.S. Border Patrol (BP) Checkpoint near Falfurrias when law enforcement agents discovered them. Some of the illegal aliens claimed Barba-Rayo was the guide and that a fifth illegal alien was left in the brush after not being able to keep up with the group. Authorities ultimately found the victim whom was already deceased.
Barba-Rayo was arrested at that time. He has been and will remain in custody pending his sentencing, set for Dec. 4, 2018, before U.S. District Judge Nelva Gonzales Ramos. At that time, he faces up to 10 years in prison and a possible $250,000 maximum fine.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of the Border Patrol. Assistant U.S. Attorney David Paxton is prosecuting the case.
Two Sent to Prison after Seminal Fluid Links them to Armed RobberyRead the Press Release
HOUSTON – Two men have been ordered to prison after DNA found in seminal fluid identifies them in connection to the armed robbery of a Houston area massage parlor, announced U.S. Attorney Ryan K. Patrick. Javian Chapman, 20, and Joseph Berzat, 21, both of Houston, pleaded guilty in March 2018 to two counts of aiding and abetting interference with commerce by robbery and one count of aiding and abetting the discharge of a firearm during and in relation to a crime of violence.
Today, U.S. District Judge Andrew S. Hanen handed Chapman a 63-month sentence for the robbery charges in addition to an additional 120 months for the firearms charge which must be served consecutively to the other sentence imposed. Berzat received 96 months for the robbery charges and 120 months for the firearms charge. The respective 183 and 216-month terms of imprisonment will be immediately followed by five years of supervised release. The defendants were also ordered to pay restitution for an ATM they damaged and the cash they stole as well as medical expenses incurred by one of the victims. At the hearing, the court heard Berzat and Chapman had physically assaulted the employees. The court determined that the robbers had abducted employees by forcing them to move into separate rooms at gunpoint.
From approximately 11:00 p.m. Friday, Aug. 5, 2016, until nearly 2:00 a.m. Aug. 6, 2016, Chapman and Berzat entered Hana Spa located at 14015 Bammel North in Houston, demanding money and property at gunpoint. They ultimate left with cash, a Samsung Galaxy S5 cell phone and a 2014 Acura SUV. While inside, the suspects broke open the ATM and removed cash from inside using a drill and other tools they had brought with them. They also discharged a firearm.
During the robbery, the suspects had physically and sexually assaulted employees. Authorities later processed the scene for forensic evidence and uncovered DNA from seminal fluid found at the scene which positively identified Berzat and Chapman. Investigators also recovered a palm print from the ATM, which was determined to match Berzat. In addition, Spa employees identified both men as the suspects that held pistols and demanded money during the robbery.
Chapman and Berzat have been and will remain in custody.
The FBI and Harris County Sheriff’s Office conducted the investigation. Assistant U.S. Attorneys Carrie Wirsing and Jill J. Stotts prosecuted the case which was brought as part of the Department of Justice’s Project Safe Neighborhoods (PSN), a nationwide program to reduce gun and gang crime in America and the Houston Law Enforcement Violent Crime Initiative which seeks to proactively fight violent crime across the Greater Houston area.
Roma Man Sentenced for Hiring Others to Purchase FirearmsRead the Press Release
McALLEN, Texas – A 21-year-old man from Roma has been ordered to federal prison following his conviction for aiding and abetting the making of false statements or representations with regards to firearms records, announced U.S. Attorney Ryan K. Patrick. Alexis Lopez pleaded guilty May 15, 2017.
Today, U.S. District Judge Randy Crane sentenced Lopez to 51 months imprisonment to be immediately followed by three years of supervised release. The sentence was enhanced as the court took into consideration the fact that Lopez recruited and directed three straw purchasers to purchase a total of four .50 caliber rifles on his behalf.
From 2015 to 2017, Lopez and straw purchasers bought a total of 10 firearms, five of which were previously recovered in Mexico. The majority of the firearms were military style firearms. In one instance, authorities recovered a .50 caliber rifle in Mexico within 17 days of its purchase.
During the hearing today, the court heard that the investigation began when a federal firearms license holder (FFL) referred information to law enforcement concerning a suspicious individual believed to be using an assumed name who was attempting to purchase a grenade launcher. Authorities later determined that the individual in question was Lopez.
Lopez has been and will remain in federal custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and Immigration and Customs Enforcement’s Homeland Security Investigations jointly conducted the investigation. Assistant U.S. Attorney Linda Requénez prosecuted the case.
Houston Physician Admits to Failing to Timely File Tax Returns for more than 20 YearsRead the Press Release
HOUSTON – A physician who has practiced in Houston for more than 30 years has entered a guilty plea to tax evasion, announced U.S. Attorney Ryan K. Patrick.
Edward J. Crouse acknowledged in the plea agreement that he has not timely filed an individual income tax return since 1997. According to the plea agreement, Crouse earned more than $4.4 million from 2009 - 2012.
Crouse consistently committed numerous affirmative acts of tax evasion over the years to conceal his true income from the IRS, including concealing the complete business records of his medical practice for calendar years 2006 through 2012 from his bookkeeping and tax return preparation firm. Crouse also admitted he signed an IRS collection form on or about May 1, 2010, in which he understated the amount of his income from his medical practice available for payment of taxes and household expenditures.
Crouse has agreed that the total intended tax loss in his case was approximately $678,103, which accounts for unpaid individual income taxes as well as the amounts of federal taxes and FICA that Crouse withheld from the wages of his medical practice employees but did not pay over to the IRS.
He has agreed to pay restitution to the IRS of $678,103.
Sentencing has been set for Dec. 13, 2018, before Chief U.S. District Judge Lee Rosenthal. At that time, Crouse faces up to five imprisonment and a possible $250,000 maximum fine.
He was permitted to remain on bond pending that hearing.
IRS-Criminal Investigation is conducting the investigation. Assistant U.S. Attorney Charles J. Escher is prosecuting the case.
Corpus Christi Man Sentenced in McAllen for Cocaine TraffickingRead the Press Release
McALLEN, Texas – A 41-year-old resident of Corpus Christi has been ordered to federal prison following his convictions of conspiracy and possession with the intent to distribute cocaine, announced U.S. Attorney Ryan K. Patrick. A federal jury convicted Ramiro Cordova Jr. Oct. 18, 2016, following less than two days of trial and approximately an hour of deliberation.
Today, U.S. District Judge Randy Crane, who presided over the trial, ordered Cordova to serve a 240-month sentence to be immediately followed by five years of supervised release. In handing down the sentence, Judge Crane noted Cordova’s status as a career offender due to his criminal history which included convictions for engaging in organized criminal activity to commit aggravated robbery and aggravated kidnapping and possession with intent to distribute 728 kilograms of marijuana.
During trial, the jury heard that on Sept. 1, 2016, law enforcement learned of a suspicious tractor trailer and conducted surveillance on the vehicle. They later executed a traffic stop on the vehicle in Edinburg, during which time a K-9 alerted to the presence of narcotics. The tractor trailer was then transported to the Pharr port of entry for further inspection where authorities located 40 bundles of cocaine weighing approximately 47 kilograms. Cordova was the driver.
Cordova was arrested and said he believed he was transporting marijuana. However, in subsequent interviews, he admitted he was transporting cocaine and was to be paid approximately $1,000 per kilogram he transported.
At trial, the defense argued that Cordova was transporting the drugs due to threats he received against members of his family for previously serving as an informant. Cordova took the stand and admitted to being previously convicted of transporting more than 700 kilograms of marijuana in 1999 and served 115 months in federal custody. He further testified that after being released from custody, he was coerced into delivering at least an additional six loads of a controlled substance to various cities across the United States, including Chicago.
Texas Department of Public Safety conducted the investigation with the assistance of the Alton Police Department and Customs and Border Protection. Assistant U.S. Attorneys Roberto Lopez Jr. and Robert L. Guerra Jr. prosecuted the case.
“Fleshlight” Discovery leads to Spring Man’s Conviction on Three Child Pornography ChargesRead the Press Release
HOUSTON – A federal jury has convicted a 37-year-old Spring resident of distribution, receipt and possession of child pornography, announced U.S. Attorney Ryan K. Patrick. The jury deliberated for less than three hours before convicting Mark Adair following a two-day trial.
The jury heard that Adair had been uploading and downloading child pornography via peer-to-peer software. Authorities has executed a search warrant at his residence which resulted in the discovery of computer media and external digital storage devices. Forensic analysis revealed more than 26,000 child pornography images and 490 child pornography videos.
At trial, the jury learned Adair was receiving child pornography and moving it from his computer to a thumb drive hours before authorities executed the search warrant. Adair had used peer-to-peer software on 30 separate days between December 2015 and February 2016 to receive and distribute child pornography images and videos.
The defense attempted to convince the jury there were other people in the home that could have been the source of the child pornography. However, the government presented evidence including photographs that demonstrated Adair lived alone.
Further, all the devices containing the child pornography were found in the living room. Three of the devices were located on the coffee table next to a tube of personal sexual lubricant. A sexual stimulation device known as a “fleshlight” was also fully visible, next to the sink. A “fleshlight” is a sexual stimulation device disguised as a flashlight but, when opened, reveals a rubber insert modeled after a vagina.
The jury heard arguments that had someone lived with anyone else, these items would likely not be out in the open for anyone to see.
U.S. District Judge Keith P. Ellison presided over the trial and set sentencing for Nov. 14, 2018. Adair has been and will remain in custody pending that hearing.
At that time, Adair faces a minimum of five and up to 20 year for the distribution and receipt of child pornography as well as a maximum of 10 years for the possession charge. Additionally, the charges are punishable by a $250,000 possible maximum fine.
The FBI conducted the investigation.
Assistant U.S. Attorneys Kimberly Ann Bulger Leo and Sherri L. Zack are prosecuting the case, which was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Two Former CCAD Supervisors Arrested for Falsifying Helicopter Blade Test RecordsRead the Press Release
CORPUS CHRISTI, Texas – Two Robstown residents have been taken into custody on charges of conspiracy and falsifying records related to aircraft parts, announced U.S. Attorney Ryan K. Patrick.
Albert Flores, 57, of Corpus Christi, and Samuel Escareno, 54, made their initial appearances before U.S. Magistrate Judge Judge B. Janice Ellington today, at which time they were ordered into custody pending a detention hearing set for Aug. 30 at 9:00 a.m. before Judge Ellington.
A federal grand jury indicted Flores and Escareno, both former supervisors at the Corpus Christi Army Depot, on one count each of conspiracy and falsifying records related to aircraft parts.
The indictment alleges Flores and Escareno did aid, abet, council, command and induce others to make false entries and certifications on UH-60 Black Hawk helicopter main rotor blade dynamic balance data sheets. The defendants allegedly did so in order for nonconforming rotor blades to appear to meet specifications when they actually did not.
If convicted, Flores and Escareno both face a sentence of up to 10 years in federal prison and a fine of up to $250,000.
The Department of Army’s Criminal Investigation Division – Major Procurement Fraud Unit conducted the investigation. The Robstown Police Department assisted in the arrest. 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.