Southern District of Texas
Press releases recorded for this federal judicial district.
Texas National Guard Soldier Arrested for Stealing Meth from CBPRead the Press Release
LAREDO, Texas – Federal charges have been filed against a Texas Army National Guardsman for stealing approximately 1.5 kilograms of methamphetamine from Customs and Border Protection (CBP), announced U.S. Attorney Ryan K. Patrick.
Law enforcement arrested Edwin Baez, 20, of Cypress, Friday following the filing of sealed criminal complaint. He made his initial appearance in Laredo federal court before U.S. Magistrate Judge Diana Song Quiroga today, at which time he was ordered detained pending a detention hearing set for Aug. 31 at 10:00.
Baez, a private with a Texas Army National Guard Unit stationed in Houston, is charged with theft of government property, conspiracy and possession with intent to distribute approximately 1.5 kilograms of methamphetamine.
At the time of the alleged offense, Baez was deployed to Laredo to assist CBP at the World Trade Bridge by providing mission enhancing capabilities such as surveillance, reconnaissance, operational and logistics support.
According to the charge, on Aug. 1, 2018, Baez removed a picture frame he knew contained bundles methamphetamine that were hidden within it. He allegedly took the frame to a CBP dumpster for disposal, later returning to retrieve some of the methamphetamine. The criminal complaint alleges he took the drugs to his hotel room with plans to consume some of it and sell the remainder.
He was arrested following his release from the hospital for a drug-induced emergency.
The total value of the methamphetamine allegedly totals approximately $12,000.
If convicted of the drug charges, Baez faces a minimum of 10 years and up to life in federal prison. He also faces up to 10 years if convicted of theft of government property.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of CBP. Supervisory Assistant U.S. Attorney Homero Ramirez is prosecuting the case.
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Houston Men Sentenced for Tax Impersonation ScamRead the Press Release
HOUSTON – Two men have been ordered to federal prison following their convictions of conspiracy to commit wire fraud in a scheme that involved more than over 200 victims, announced U.S. Attorney Ryan K. Patrick along with Special Agent in Charge Gary Smith of the Treasury Inspector General for Tax Administration (TIGTA). Vedas Engineer, 34, Bhavdip Sanghavi, 37, pleaded guilty in July and December 2017, respectfully.
Today, U.S. District Judge David Hittner ordered Sanghavi to serve 96 months in prison. Engineer received the same sentence May 30, 2018. Both were also ordered to serve three years of supervised release following their sentences and are to pay more than $1 million in restitution.
In imposing the sentence, the court considered the offense which involved more than 200 victims across the United States, some of whom were elderly.
The scheme involved victim tax-payers across the United States who were pressured to pay money to resolve alleged tax debts via wire transfers.
“Over the past five years, TIGTA has received reports of over 2.3 million impersonation related calls with over 14,000 victims reporting losses of almost $70 million, said Smith. “Victimizing taxpayers by impersonating IRS employees is a serious crime. TIGTA and our law enforcement partners are doing everything within our power to ensure that those involved in the impersonation of IRS employees are prosecuted to the fullest extent of the law.”
Those who receive such calls are urged to report the numbers to TIGTA on the agency’s website.
TIGTA conducted the investigation. Assistant U.S. Attorney Celia Moyer is prosecuting the case.
Another Cardenas Family Member Sent to Federal PrisonRead the Press Release
BROWNSVILLE, Texas – The son of the former Gulf Cartel leader has been ordered to federal prison following his conviction of illegally possessing a firearm and impersonating a U.S. Marshal, announced U.S. Attorney Ryan K. Patrick. Osiel Cardenas Jr., 26, pleaded guilty May 22, 2018.
Today, U.S. District Judge Fernando Rodriguez Jr., handed Cardenas a 27-month sentence to be immediately followed by three years of supervised release. The court also ordered Cardenas to pay a $15,000 fine.
On March 14, 2018, authorities responded to the SKY Bar and Lounge in Brownsville in response to reports of an individual within the club brandishing a firearm. That person was identified as Cardenas. He was found next to his vehicle within the SKY Bar and Lounge parking lot and arrested for public intoxication. At the time of his arrest, Cardenas informed officers he was a U.S. Marshal and asked them to look at his badge. Hanging on his neck, under his shirt, officers located a gold colored Cameron County District Attorney’s badge. Officers also found a Bersa, .380 caliber firearm inside his vehicle which also contained his identification documents and U.S. currency.
Witnesses identified Cardenas as the individual inside the nightclub brandishing the firearm. They also identified the firearm recovered from his vehicle as the firearm they had seen Cardenas brandish within the nightclub. They indicated Cardenas had also displayed a gold colored badge and identified himself as a U.S. Marshal. The witnesses indicated Cardenas ordered patrons to leave the nightclub or they would be arrested for failure to follow his commands.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Brownsville Police Department conducted the investigation. Assistant U.S. Attorney Angel Castro is prosecuting the case.
Jury Convicts Bank Employee of Aiding and Abetting RobberyRead the Press Release
HOUSTON - A federal jury has convicted a 25-year-old Houston woman for the
robbery of the International Bank of Commerce (IBC) in June 2016, announced U.S. Attorney Ryan K. Patrick. The jury deliberated for less than three hours before convicting Mary Mosley following a three-day trial.
At trial, the jury heard that Mosley was as employee at IBC bank in Houston when she gave her then boyfriend, Kendrick Miller, and his brother, Kenneth Glenn, inside information regarding bank operations and procedures. Mosley informed Miller how much money was in the vault, that it took two people to open it and information about when security would arrive.
On June 9, 2016, Miller, Glenn and Mosley’s cousin - Xavier Cain showed up ready to commit the robbery as planned. However, when Mosley and her co-worker arrived early on that morning, the front doors of the bank would not open.
Mosley then told the robbers she had left the back door unlocked so they could enter the building. Miller and Glenn entered the bank with a handgun. Glenn then ordered Mosley’s co-worker to the ground at gunpoint and ordered Mosley and her co-worker to open the vault. Miller, Glenn and Cain drove away with the money from the vault.
Miller, 29, Cain, 27, and Glenn, 24, all of Houston, have previously for their roles in the robbery and are awaiting sentencing. They each face up to 25 years in prison. Miller and Glenn face additional penalties for related firearms offenses. They all remain in custody pending those hearings.
Mosley’s sentencing is set for Dec. 4, 2018, before U.S. District Judge Nancy Atlas. At that time she faces up to 25 years in prison. She was permitted to remain on bond pending that hearing.
The Houston Police Department and the FBI conducted the investigation as part of the Houston Law Enforcement Violent Crime Initiative. Assistant U.S. Attorneys Jill Stotts and Celia Moyer prosecuted the case.
Bookkeeper Sentenced for Embezzling $1.7 Million in Client FundsRead the Press Release
HOUSTON – A local woman has been ordered to federal prison following her conviction of 12 counts of mail and wire fraud and four counts of filing a false tax return, announced U.S. Attorney Ryan K. Patrick. Gwendolyn M. Berry pleaded guilty Feb. 5, 2018.
Today, U.S. District Judge Gray Miller handed Berry a 51-month sentence to be immediately followed by three years of supervised release. Berry was ordered to pay $1,820,858.40 in restitution to her fraud victims and an additional $344,268 in restitution to the IRS.
At the hearing, Judge Miller determined Berry used sophisticated means in carry out her scheme to defraud and abused her position of trust. In handing down the sentence, the court noted that Berry engaged in this criminal activity over many years and took measures to conceal her misappropriation of funds.
Berry embezzled more than $1.8 million from a family’s bank accounts by writing checks on their accounts to pay her personal bills and those of family members.
Berry also pleaded guilty to filing false federal tax returns for the tax years 2011 through 2014. In each of those tax returns, Berry omitted reporting the money she embezzled from her victims.
Berry 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. Secret Service and IRS - Criminal Investigation conducted the investigation. Assistant U.S. Attorney Melissa Annis is prosecuting the case.
Young Laredo Woman Sentenced for Conspiracy to Import Multiple DrugsRead the Press Release
LAREDO, Texas – A 19-year-old Laredo woman has been ordered to federal prison following her conviction of conspiracy to import methamphetamine, cocaine and heroin from Mexico, announced U.S. Attorney Ryan K. Patrick. Valeria Yazmin Santos-Perez pleaded guilty April 25, 2018.
Today, U.S. District Judge Marina Garcia-Marmolejo handed Santos-Perez a 60-month sentence to be immediately followed by three years of supervised release. Before sentencing Santos-Perez, the court asked her if she had given any thought to the harm that would be caused by bringing a large quantity of narcotics into the United States. Santos-Perez admitted she had not given that any thought
At the time of her plea, Santos-Perez admitted to driving a Mercedes-Benz SUV across the Lincoln-Juarez Bridge with bundles of narcotics hidden beneath the center console and beneath the floorboards of the vehicle. She said she had smuggled narcotics in a similar manner once previously and was paid $6,000 to drive the vehicle to Fort Worth.
Customs and Border Protection (CBP) agents spent several hours extracting all the narcotics from the vehicle. The total included nine bundles of cocaine with a gross weight of 9.54 kilograms, two bundles of brown heroin with a gross weight of 1.22 kilograms, five bundles of black tar heroin with a gross weight of 1.16 kilograms and 168 bundles of methamphetamine with a gross weight of 19.04 kilograms.
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.
Immigration and Customs Enforcement’s Homeland Security Investigations and CBP conducted the investigation. Assistant U.S. Attorney Michael Bukiewicz is prosecuting the case.
Three Sentenced for Transporting Drugs via LanchaRead the Press Release
CORPUS CHRISTI, Texas – Three Mexican nationals have been sentenced for conspiring to import 611 kilograms of marijuana into the United States, announced U.S. Attorney Ryan K. Patrick. Julio Cesar Cruz-Amaro, 31, Tito Mar-Herrera, 35, and Miguel Angel Ender-Diaz, 56, pleaded guilty March 1, 2018, for their involvement in conspiring to import marijuana into the United States while on board a vessel.
Today, U.S. Circuit Judge Gregg Costa, sitting by designation, sentenced Cruz-Amaro to a 60-month-term of imprisonment, while Mar-Herrera and Ender-Diaz both received terms of 36 months. Not U.S. citizens, all are expected to face deportation proceedings following their sentences.
On Dec. 13, 2017, authorities detected and captured a Mexican lancha boat crew illegally transporting narcotics while in federal waters off southern Texas. Cruz-Amaro, Mar-Herrera and Ender-Diaz were interdicted in the vicinity of Packery Channel near Port Aransas along with one lancha and 30 bales of marijuana totaling 611 kilograms.
U.S. Coast Guard (USCG) originally detected the vessel offshore traveling northbound towards the United States which was then intercepted with the assistance of Custom and Border Protection (CBP) approximately nine nautical miles offshore.
They had admitted a criminal organization hired them to bring the drugs into the United States through Corpus Christi.
A lancha is a fishing boat used by Mexican fishermen that is approximately 20-30 feet long with a slender profile, typically has one outboard motor and is capable of traveling at speeds exceeding 30 mph.
All three have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
USCG conducted the investigation with the assistance of CBP. Former Assistant U.S. Attorney (AUSA) Jeffrey S. Miller and AUSA David Paxton prosecuted the case.
Mexican Meth Importer Sent to PrisonRead the Press Release
LAREDO, Texas – A 27-year-old resident of Guadalajara, Jalisco, Mexico, has been ordered to prison for importing methamphetamine into the United States, announced U.S. Attorney Ryan K. Patrick. Leonardo Daniel Ramirez-Gallegos pleaded guilty May 1, 2018, to conspiracy to import fifty grams or more of methamphetamine.
Today, District Judge Marina Garcia Marmolejo sentenced Ramirez-Gallegos, to 70 months in prison. Not a U.S. citizen, he is expected to face deportation proceedings following his imprisonment. In handing down the sentence, the court noted Ramirez-Gallegos was entrusted with a substantial amount of methamphetamine and that he chose to bring along his five-year-old son while committing this crime.
On Feb. 25, 2018, Ramirez-Gallegos applied for entry into the United States at the Colombia Bridge Port of Entry near Laredo driving a 2003 Honda Odyssey. His wife and small child were accompanying him.
Customs and Border Protection (CBP) officers conducted an inspection and found approximately 13.55 kilograms of methamphetamine hidden in a trap door within each of the interior sliding doors of the Odyssey.
Ramirez-Gallegos had instructed his wife to lie to authorities if they were interviewed at the border. Ultimately, however, Ramirez-Gallegos admitted to knowingly importing the 16 bundles of methamphetamine into the United States.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of CBP. Special Assistant U.S. Attorney Lisa M. Ezra prosecuted the case.
Mexican Lawyer Heads to Prison for Drug TraffickingRead the Press Release
LAREDO, Texas – A 30-year-old Mexican resident has been ordered to federal prison following his conviction of conspiring to import and importing nearly 15 kilograms of heroin, announced U.S. Attorney Ryan K. Patrick. Nestor Omar Dueñas-Jimenez, of Villa de Alvarez, Colima, Mexico, pleaded guilty May 1, 2018.
Today, U.S. District Judge Marina Garcia Marmolejo handed Dueñas-Jimenez a 63-month sentence. Not a U.S. citizen, he is expected to face deportation proceedings following the sentence. In handing down the sentence, the court noted that given his education and background, Dueñas-Jimenez should have known better.
Dueñas-Jimenez is licensed to practice law in Mexico.
On March 4, 2018, Dueñas-Jimenez applied for admission into the United States from Mexico via the Lincoln-Juarez International Bridge driving a Chevrolet Cruze. Customs and Border Protection (CBP) officers referred him to secondary inspection, during which time they discovered 14.66 kilograms of heroin hidden in his vehicle.
At the hearing, Dueñas-Jimenez said he tried smuggling the narcotics because he wanted money to buy a new car.
Authorities estimate the drugs have a street value of $450,000.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Customs and Border Protection and Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Giselle S. Guerra prosecuted the case.
Local Man Sentenced for Drive-By Shooting Conspiracy to Distribute Synthetic NarcoticsRead the Press Release
CORPUS CHRISTI, Texas – A 19-year-old Corpus Christi resident has been ordered to federal prison following his conviction for conspiracy to possess with intent to distribute synthetic cannabinoids and discharging a firearm in relation to a drug trafficking offense, announced U.S. Attorney Ryan K. Patrick. Moises Alvarado pleaded guilty May 16, 2018.
Today, Senior U.S. District Judge John D. Rainey sentenced Alvarado to 108 months for the synthetic cannabinoid offense as well as a 120-month consecutive term for discharging a firearm in relation to a drug trafficking crime. The total 228-month prison term will be immediately followed by three years of supervised release.
On Nov. 15, 2017, Corpus Christi Police Department (CCPD) officers responded to a drive-by shooting in the 400 block of Breckenridge in Corpus Christi. Upon arrival, officers discovered that gunfire had struck a woman and child inside the residence. At the scene, officers recovered a total of 47 shell casings from two different caliber assault rifles.
Two days later, CCPD responded to an accidental shooting that occurred in the 5800 block of Weber Road in Corpus Christi. At that time, they discovered that Alvarado had been shot and that Librado Esquivel, 24, and Henrey Ayala III, 26, both of Corpus Christi, dropped him off at a local urgent care center.
As part of the investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) and CCPD SWAT Team executed search warrants at area residences on Dec. 7, 2017. At that time, law enforcement arrested Esquivel on a criminal complaint and seized several firearms, multiple rounds of ammunition, firearm parts and magazines, U.S. currency and multiple packages of synthetic cannabinoids. Ayala was arrested on a criminal complaint the following week.
As a result of the federal investigation, agents determined Esquivel was a large supplier and distributor of synthetic cannabinoids in the area and was owed a debt related to his drug trafficking. Ayala and Alvarado agreed to commit the shooting and were promised a quantity of synthetic cannabinoids among other things as payment.
Ayala and Esquivel also pleaded guilty to conspiracy to possess with intent to distribute synthetic cannabinoids and discharging a firearm in relation to a drug trafficking offense and are set for sentencing before Judge Rainey on Sept. 17, 2018.
Synthetic cannabinoids are chemical compounds that mimic the psychoactive ingredient in marijuana. These chemical compounds can be applied to carrier mediums such as plant material and ingested using rolling papers, pipes, vaporizers or otherwise taken orally. Synthetic cannabinoids are usually sold in small, foil or plastic bags containing dried leaves (resembling potpourri) and is marketed as incense that can be smoked. It is commonly sold and known on the street as synthetic marijuana, fake weed, legal and by its popular brand names such as Spice, K2, Kush, Klimaxx and many others.
Alvarado will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be designated in the near future. Ayala and Esquivel are also in custody.
ATF, HSI and CCPD conducted the investigation with the assistance of the Drug Enforcement Administration. Assistant U.S. Attorney Lance Watt is prosecuting the case.
Local Man Sentenced for Armed Drug Trafficking of Synthetic NarcoticsRead the Press Release
CORPUS CHRISTI, Texas – A 35-year-old Corpus Christi resident has been ordered to federal prison following his conviction for possession with intent to distribute synthetic cannabinoids and possessing a firearm during a drug trafficking offense, announced U.S. Attorney Ryan K. Patrick. Andrew Hernandez pleaded guilty Feb. 20, 2018.
Today, Senior U.S. District Judge John D. Rainey sentenced Hernandez to 70 months for the synthetic cannabinoid offense as well as a 60-month consecutive term for possession of a firearm in furtherance of a drug trafficking crime. The total 130-month prison term will be immediately followed by five years of supervised release.
On Feb. 27, 2017, Hernandez was arrested at a local restaurant in Corpus Christi for an outstanding felony warrant. As he was taken into custody, officers removed a loaded .380 caliber handgun from his pocket. As a previously convicted felon, Hernandez is prohibited from possessing firearms and ammunition per federal law. At the time of arrest, officers also discovered several thousand dollars in U.S. currency and 72 packets of synthetic cannabinoids. Laboratory analysis confirmed the presence of FUB-AMB, which is controlled under the Controlled Substance Analog Act.
Synthetic cannabinoids are chemical compounds that mimic the psychoactive ingredient in marijuana. These chemical compounds can be applied to carrier mediums such as plant material and ingested using rolling papers, pipes, vaporizers or otherwise taken orally. Synthetic cannabinoids are usually sold in small, foil or plastic bags containing dried leaves (resembling potpourri) and is marketed as incense that can be smoked. It is commonly sold and known on the street as synthetic marijuana, fake weed, legal and by its popular brand names such as Spice, K2, Kush, Klimaxx and many others.
Hernandez was taken into federal custody in December 2017 as part of Operation City Shield, a coordinated federal, state and local law enforcement operation designed to identify violent offenders, stop gun violence and protect the community.
Hernandez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be designated in the near future.
The Corpus Christi Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney Lance Watt is prosecuting the case.
Corpus Man Sent to Prison for Distributing Sexually-Explicit Images of ChildrenRead the Press Release
CORPUS CHRISTI, Texas - A 37-year-old Corpus Christi man has been ordered to prison following his admissions to distributing child pornography on at least two occasions, announced U.S. Attorney Ryan K. Patrick. David Medina pleaded guilty May 16, 2018.
Today, Senior U.S. District Judge John D. Rainey sentenced Medina to 102 months in prison. In imposing the sentence, the court noted Medina “needs help” and considered victim impact letters detailing the effect of the continued distribution of images depicting how they were sexually abused as children. Medina was further ordered to serve 10 years of supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. Medina will also be ordered to register as a sex offender.
In September 2016, the FBI Child Exploitation Task Force conducted an investigation on a file sharing network looking for potential offenders sharing child pornography. An officer was eventually able to download many images of child pornography from a computer and a specific IP address linked to David Medina in Corpus Christi. Agents obtained a search warrant for Medina’s residence, after which agents seized several digital devices that led to the discovery of more than 3,500 images and 28 videos of child pornography.
Another investigation in 2017 led authorities to a different computer sharing child pornography which was traced to a second residence in Corpus Christi linked to Medina. He cellular phone was seized and allegedly found to contain more than 1,000 images and 95 videos of child pornography.
In Feb. 21, 2018, authorities received information that someone was downloading child pornography at a hotel in Corpus Christi. Medina was found to be renting a room at that location and seized his laptop as part of the investigation. At that time, Medina again admitting to distributing child pornography.
He has been an will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation with the assistance of the Corpus Christi Police Department - Internet Crimes Against Children Task Force.
Assistant U.S. Attorney (AUSA) Hugo R. Martinez prosecuting the case. AUSA Brittany Jensen handled the sentencing on this matter, 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."
Six-Time Felon Receives Lengthy Sentence for Methamphetamine DistributionRead the Press Release
CORPUS CHRISTI, Texas - A 33-year-old South Texas man has been ordered to federal prison for participating in a conspiracy to sell crystal methamphetamine and using a firearm to facilitate that crime, announced U.S. Attorney Ryan K. Patrick. Joshua Caskey, of Alvin, pleaded guilty May 14, 2018.
Today, Senior U.S. District Court Judge John D. Rainey sentenced Caskey to 235 months in federal prison. At the hearing, the court noted Caskey has six prior felony convictions involving drug possession and forgery.
Officers with the Houston Police Department (HPD) encountered Caskey in April 2017 during an ongoing narcotics investigation. At the time of his arrest, he was in possession of a duffle bag containing more than five pounds of crystal methamphetamine, 44 grams of PCP, seven grams of heroin, a stolen 9 mm firearm and more than $10,000 in cash.
The investigation led to the connection of that methamphetamine and cash to a known drug trafficking organization operating from Corpus Christi to Houston.
Ultimately, authorities arrested seven people and seized multiple firearms and large amounts of crystal methamphetamine. The remaining defendants have all been convicted and are awaiting sentencing.
Caskey has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration and Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of police departments in Corpus Christi and Houston. Assistant U.S. Attorney Brittany Jensen prosecuted the case.
Rosenberg Man Handed Significant Sentence for Multiple Child Pornography ChargesRead the Press Release
HOUSTON – A 25-year-old man from Rosenberg has been sent to federal prison for nearly 40 years following his convictions of sexual exploitation of a child, distribution and possession of child pornography, announced U.S. Attorney Ryan K. Patrick. Ryan Glen Colburn pleaded guilty April 19, 2017.
Today, U.S. District Judge Nancy F. Atlas sentenced him to 360 months for the production of child pornography (sexual exploitation of a child). He also received 28 and 60 months for the possession and distributions convictions, respectively. The sentences will run consecutively for a total 448-month prison term. In handing down the sentence, Judge Atlas considered the fact that Colburn was a creator of child pornography and had a very large collection of child pornography. Colburn was further ordered to pay restitution to three known victims and will serve 15 years of supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. He will also be ordered to register as a sex offender.
Colburn first came to the attention of law enforcement after he had sent images of child pornography to another individual who had been arrested for child pornography. Federal agents executed a search warrant at Colburn’s residence and performed a forensic examination on his computer. This exam showed Colburn was in possession of more than 1,100 images and 200 videos of young children engaged in sexually explicit conduct which included children under the age of 12, bondage and acts of violence. Some of the images are of known victims as identified through the National Center for Missing and Exploited Children.
Further, Colburn produced 25 images and six videos of a two-year-old minor which would constitute child pornography.
Agents also executed a search warrant on Colburn’s Dropbox account which contained more than 60 images and 400 videos of child pornography.
At the time of his plea, Colburn admitted to taking sexually explicit photographs and videos of a two-year-old minor. Colburn further admitted he traded these images with other individuals online.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation.
This case, prosecuted by Assistant U.S. Attorney Kimberly Ann Leo, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Local Woman Sentenced for Transporting Illegal Sex Offender and Female ChildRead the Press Release
CORPUS CHRISTI, Texas – A 40-year-old Donna resident has been ordered to federal prison following her conviction of conspiring to transport two illegal aliens – a minor female and an adult registered sex offender, announced U.S. Attorney Ryan K. Patrick. Josie Arredondo pleaded guilty May 14, 2018.
Today, Senior U.S. District Judge John D. Rainey handed Arredondo a 21-month sentence to be immediately followed by two years of supervised release. At the hearing, the court heard how Arredondo had been previously convicted for the same type of offense in 2011. At that time, she had also been attempting to smuggle an undocumented female child.
In this case, authorities encountered Arredondo at the Falfurrias Border Patrol checkpoint attempting to smuggle an undocumented four-year-old child along with the undocumented registered sex offender as passengers in her vehicle. Also inside the vehicle were her minor daughter and grand-daughter.
Arredondo claimed she was travelling to Houston to attend a funeral and took the undocumented girl and man along with her. She expected $1,000 in return for transporting them.
She was permitted to remain on bond and voluntarily surrender at a later date.
Border Patrol conducted the investigation. Assistant U.S. Attorney Brittany L. Jensen is prosecuting the case.
Criminal Alien Sent to Prison for Re-Entering the United States…AgainRead the Press Release
LAREDO, Texas – A Mexican man has been sent to federal prison for illegally re-entering the United States after he was deported, announced U.S. Attorney Ryan K. Patrick. Teodolfo Vega-Hernandez, 47, pleaded guilty to illegal re-entry after deportation March 29, 2018.
Today, District Judge Marina Garcia Marmolejo sentenced Vega-Hernandez, of Tultitlan, Estado de Mexico, Mexico, to 63 months in prison. On supervised release following his previous conviction of illegal re-entry, Vega-Hernandez received an additional 12-month sentence, three of which to be served consecutively for a total 66-month-term of imprisonment.
This marks the fourth time Vega-Hernandez has been convicted of illegally re-entering the United States following deportation. He was previously convicted Aug. 7, 2007, Nov. 18, 2009, and June 12, 2013. The court noted he was also previously convicted of a felony - driving while intoxicated - in Austin on April 14, 2005, following multiple convictions that spanned many years of driving while intoxicated, public intoxication and assault. He was ordered to be deported following those sentences, but continued to illegally re-enter the United States. After his third conviction June 12, 2013, he served 36 months in prison and was again ordered deported to Mexico Aug. 21, 2017.
However, on Jan. 12, 2018, Border Patrol (BP) found Vega-Hernandez again illegally present in the United States near Hebbronville. He had no legal documents to enter, travel through or remain in the United States.
He is again expected to face deportation proceedings following his release from prison.
Customs and Border Protection and BP conducted the investigation. Special Assistant U.S. Attorney Lisa M. Ezra prosecuted the case.
Ambulance Company Owner Convicted in $3 Million Medicare Fraud ConspiracyRead the Press Release
HOUSTON – A 59-year-old Sugar Land man has admitted to conspiring to commit health care fraud through Medicare ambulance claims, announced U.S. Attorney Ryan K. Patrick.
Anthony Chukwudi Nwosah is the owner of Tonieann EMS and Rosenberg EMS. Today, he admitted he conspired to submit more than $3 million in false and fraudulent claims to Medicare for ambulance transport services that were not provided and not medically necessary. Nwosah received approximately $1,094,260 as payment for those claims.
Nwosah admitted he submitted the ambulance claims for Medicare beneficiaries transported by vans, not ambulances, to routine psychotherapy appointments and for at least one other beneficiary who did not require ambulance transportation. Nwosah also admitted he instructed a licensed emergency medical technician (EMT) to create fake ambulance transport records which included fake vital signs, patient narratives and transport mileage. Additionally, he admitted that more than 2,000 fake ambulance transport records contained the name of another EMT who never worked for him.
The Medicare program requires ambulance providers to sign an enrollment application that expressly states the provider will not knowingly submit false or fraudulent claims to Medicare or claims with deliberate ignorance or reckless disregard for their truth or falsity. The Medicare program only intended to pay for ambulance services that were provided and medically necessary. Medicare did not intend to pay for ambulance services provided by vans or taxis or for beneficiaries who, at the time of transportation, could safely be transported by other means.
U.S. District Judge Lynn Hughes accepted the plea and has set sentencing for Nov. 19, 2018. At that time, Nwosah faces up to 10 years in federal prison and a $250,000 fine.
He was permitted to remain on bond pending that hearing.
The Department of Health and Human Services – Office of the Inspector General and the FBI conducted the investigation. Assistant U.S. Attorney Julie Redlinger prosecuted the case.
Houston Man Ordered to Prison for Attempting to Damage Hermann Park StatueRead the Press Release
HOUSTON – A 26-year-old man has been sentenced to federal prison following his conviction for attempting to maliciously damage property receiving federal financial assistance, announced U.S. Attorney Ryan K. Patrick. Andrew Schneck pleaded guilty March 27, 2018.
Today, U.S. District Judge Ewing Werlein Jr. handed Schneck a 78-month sentence to be immediately followed by three years of supervised release. The court also imposed a $10,000 fine.
On the evening of Aug. 19, 2017, a Houston park ranger observed Schneck kneeling among the bushes in front of the General Dowling Monument located in Hermann Park in Houston. Schneck was holding two small boxes with various items inside to include what appeared to be duct tape and wires. After placing the boxes on the ground per the ranger’s request, Schneck took a drink of clear liquid from a plastic bottle, spit it out and poured the remainder on the ground. The ranger then noticed a timer and wires in the box and notified the Houston Police Department (HPD).
The HPD Bomb Squad tested the clear liquid and a white powdery substance found in a small, black aluminum tube which revealed they were nitroglycerin and hexamethylene triperoxide diamine (HMTD), respectively. HMTD is a high explosive organic compound used as an initiating, or primary, explosive. Nitroglycerin is used as an active ingredient in the manufacture of explosives. ln its pure form, nitroglycerin is a contact explosive with physical shock causing it to explode and which degrades over time to even more unstable forms. Nitroglycerin is highly dangerous to transport or use.
The FBI Explosive Unit Laboratory examined the items in Schneck’s possession on Aug. 19 and determined them to comprise a fully functioning improvised explosive device.
Schneck has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI and HPD conducted the investigation. Assistant U.S. Attorneys S. Mark McIntyre and Craig M. Feazel are prosecuting the case.
Two “Rip Crew” Affiliates Head to PrisonRead the Press Release
McALLEN, Texas – Two additional defendants involved with a rip crew responsible for multiple home invasions and carjackings to steal narcotics in Hidalgo County have been ordered to federal prison, announced U.S. Attorney Ryan K. Patrick. Danny Cano, 31, Mission, pleaded guilty to possessing with the intent to distribute more than 500 grams of cocaine, while Marlyn Gonzalez 39, also of Mission, admitted to conspiring to possess with the intent to distribute more than five kilograms of cocaine.
Today, U.S. District Judge Micaela Alvarez ordered Cano to serve 108 months in prison. Gonzalez received a 50-month-term of imprisonment. Cano and Gonzalez were further ordered to serve four and three years, respectfully, following their prison terms. The court considered the offense and stated that the serious conduct was attributable to greed and a lot of people willing to do anything for money. Judge Alvarez also stated that people in a home and residents in a neighborhood, even those involved in criminal activity themselves, should not be the target of home invasions but rather face justice through the judicial system in place. In particular, the court noted Cano’s involvement in brokering a transaction involving 20 kilograms of cocaine in February 2017 and Gonzalez’s role as a lookout during a February 2016 armed home invasion in Hidalgo involving the theft of more than 10 kilograms of cocaine.
Others who have also pleaded guilty in the conspiracy and are pending sentencing including Antonio Javier Gomez aka “Little T,” 28, Arturo Vargas aka “Petu” or Cholo,” 35, Francisco Javier Montemayor aka “Fat Boy” or “el Fat” or “Rambo,” 31, and Roberto Lee Rodriguez aka “el Tio” or “Pica,” 39, all of Mission; Mexican nationals Miguel Marin Cerda aka “Tigre,” 30, Jose Garcia-De La Torre aka “Coco,” 22, Carlos Guadalupe Aquino-Pacheco aka “Tomy,” 20, Alfredo Avalos-Sanchez aka “Chore,” 26, Gustavo Angel DeLeon-Covarrubias aka “Tripa,” 19, Jose Arturo Reyes-Sanchez aka “Gordo,” 19; and Cesar Alejandro Tovar-Guillen aka “Nucho” or “el Sobrino,” 31; and Juan Antonio Flores, 27, of Weslaco.
Cano and Gonzalez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI Safe Streets Task Force and Drug Enforcement Administration conducted the investigation with the assistance of Border Patrol, Immigrations and Customs Enforcement’s Homeland Security Investigations, Hidalgo County Sheriff’s Office, Texas Department of Public Safety Regional Crime Lab and police departments in McAllen, Pharr, San Juan, Mission and Palmview. Assistant U.S. Attorneys Roberto Lopez Jr. and K. Alejandra Andrade prosecuted the case.
Pharr Woman Sent to Prison for Bank FraudRead the Press Release
McALLEN, Texas – A former bank employee has been ordered to prison for her admissions of she stealing more than $1 million from customer accounts, announced U.S. Attorney Ryan K. Patrick. Cynthia Luna Rodriguez, 45, pleaded guilty Jan. 31, 2018.
Today, U.S. District Judge Micaela Alvarez handed Rodriguez a 85-month sentence to be immediately followed by three years of supervised release. At the hearing, the court highlighted the extent to which Rodriguez went to conceal her crime, including changing addresses on accounts, getting an address of her own to use, falsifying tax paperwork, falsifying a letter from the bank and adding additional instructions to the account to control access of anyone other than Rodriguez. In handing down the sentence, the court noted the number of victims, the fact that some elderly victims did not have repairs made to their house because of the fraud, the fact that the fraud scheme happened over a number of years and that the victims were people who would trust Rodriguez. The court noted Rodriguez purposefully targeted elderly victims with limited access to the bank.
At the time of her plea, Rodriguez acknowledged she committed two counts of bank fraud and one count of embezzlement that occurred over eight years. Rodriguez admitted to illegally withdrawing money from customers’ accounts and to hiding the unauthorized withdrawals by back-filling the accounts with money from other customers’ accounts and by changing the address on the customer accounts without authorization.
Rodriguez worked at First National Bank in Edinburg. Beginning in at least January 2006, she began taking money from customer accounts without authorization. She continued to do so during the time PlainsCapital Bank took over First National Bank.
A PlainsCapital Bank audit resulted in her firing on Aug. 12, 2014. Following her termination, employees discovered documents at her desk including a 1099 statement belonging to one of the victims. The statement had been altered with whiteout over the address and interest earned sections and new information typed over them. The new address was actually a private mailbox that Rodriguez leased.
Law enforcement executed a search warrant on that private mailbox, at which time they discovered multiple mailings to account holders at her address.
Further investigation revealed a large amount of unexplained money deposited into some of Rodriguez’s accounts which corresponded with the time of the unauthorized withdrawls from the victim accounts. The victim accounts belonged to individuals who interacted with Rodriguez directly when she was employed at the bank. The accounts primarily belonged to elderly individuals and to individuals living out of the country whom were not likely to regularly monitor their accounts. When account holders or their representatives came in to close their statements, Rodriguez moved money from another victim’s account to backfill the account about to be closed.
A forensic audit conducted by an outside accounting firm determined that approximately $1.3 million was taken from six victim accounts over an eight-year time span. As part of her plea, Rodriguez agreed to pay more than $1.1 million in restitution.
Rodriguez 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 with the assistance of the Federal Deposit Insurance Corporation. Assistant U.S. Attorney Joseph Leonard is prosecuting the case.
Former Employee Sentenced for Wire FraudRead the Press Release
HOUSTON – A 28-year-old former employee of BP America Inc. has been ordered to federal prison for attempting to extort money from the company, announced U.S. Attorney Ryan K. Patrick. George Koutsostamatis pleaded guilty to one count of wire fraud April 16, 2018.
Today, U.S. District Judge Sim Lake ordered Koutsostamatis to serve 27 months in federal prison and furter ordered he pay $552,651.00 in restitution. Koutsostamatis will also serve three years of supervised release following completion of his prison term.
Koutsostamatis admitted that in June 2017 he sent an email to BP falsely claiming that he had infiltrated the company’s computer network system and obtained the personal information of BP employees and their families. He threatened to release internal documents and the personal identifying information if BP did not pay him 125 bitcoins. In truth, Koutsostamatis obtained BP documents while employed there.
Koutsostamatis is on bond pending his reporting date to the bureau of prisons.
The FBI Houston Cyber Task Force investigated this case. The FBI Houston Cyber Task Force is a multi-agency task force responsible for investigating, pursuing and defeating cyber criminals who seek to exploit our nation’s most significant computer systems, networks and critical infrastructure. The Houston field office of the FBI led the investigation with assistance from U.S. Attorney’s Offices in Houston and Chicago, FBI – Chicago field office and the National Crime Agency in the United Kingdom. Assistant U.S. Attorney Rodolfo Ramirez is prosecuting the case.
Valley Couple Sentenced After Violent Dispute over NarcoticsRead the Press Release
BROWNSVILLE, Texas – A 21-year-old man and an 18-year-old woman have both been ordered to federal prison following a drug dispute between the two that ended in violence and an attempted escape from custody, announced U.S. Attorney Ryan K. Patrick. Ricardo Gonzalez and his former girlfriend Violeta Torres, both of Brownsville, pleaded guilty Sept. 21 and Aug. 10, 2017, respectively.
Today, U.S. District Judge Rolando Olvera ordered Gonzalez to serve a 120-month term of imprisonment to be immediately followed by three years of supervised release, while Torres received a term of 87 months followed by four years of supervised release.
Gonzalez and Torres were initially working together to distribute approximately 22 pounds of cocaine in the Brownsville area. Law enforcement ultimately recovered approximately 8.5 pounds of the narcotics.
During the course of the conspiracy, a dispute between the couple caused Torres to leave Gonzalez’s home. Thereafter, she then hired at least one other individual to break into her ex-boyfriend’s home, physically restrain him, tie him up and steal the cocaine.
The next day, Gonzalez travelled to the home where his ex-girlfriend resided and attempted to retrieve the cocaine by force, discharging his firearm during the altercation. After law enforcement arrived on scene in response to the gunfire, Gonzalez escaped police custody and fled into the south Texas brush. Authorities apprehended Gonzalez, who was hiding in the brush, shortly thereafter.
Both will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigation with the assistance of the Brownsville Police Department and the Texas Department of Public Safety. Assistant U.S. Attorney Jason Corley prosecuted the case.
Houston Man Convicted of Robbing Traveling Jewelry SalesmanRead the Press Release
HOUSTON – A 30-year-old resident of Houston had pleaded guilty to cconspiracy to interfere with commerce by robbery, announced U.S. Attorney Ryan K. Patrick.
Gabriel Ocampo-Mayorquin admitted in federal court yesterday that he was part of a violent robbery crew that would rob traveling jewelry salesmen during their travels to Houston.
On Sept. 11, 2009, Ocampo-Mayorquin and Columbian co-conspirators robbed an off-duty Texas Alcohol and Beverage Commission (TABC) officer and an interstate traveling jeweler at gunpoint at 3201 Sage Road in Houston. Ocampo-Mayorquin and Santos Diaz-Soto, 32, approached the TABC officer while he was waiting in his car on the salesman. Diaz-Soto had the gun and Ocampo-Mayorquin a “glass punch” used to break the windows of the car.
After Ocampo-Mayorquin broke the window, Diaz-Soto held the officer at gunpoint, at which time they attempted to steal several watches. The officer fired shots resulting in injuries to both. Diaz-Soto was shot in the back and arms, while Ocampo-Mayorquin was shot in the arm.
The men then fled into a green Acura that Juan Carlos Valencia, 35, was driving. Immediately thereafter, witnesses observed three suspicious vehicles enter into the Gables Apartment Complex located at 3300 Sage Road to change license plates and switch cars. Ocampo-Mayorquin fled to Mexico after this robbery under an alias, while the others, all Columbian nationals, were charged and sentenced for their various roles in this robbery.
Ocampo-Mayorquin spent eight years in a Mexican prison, after which the FBI brought him back to the United States face these charges. He will remain in custody pending sentencing, at which time he faces up to 20 years in prison and a possible $250,000 fine.
The FBI conducted the investigation. Assistant U.S. Attorney Suzanne Elmilady is prosecuting the case.
Federal Judge Sends Raymondville Man to Prison for Meth DistributionRead the Press Release
BROWNSVILLE, Texas – A 21-year-old Raymondville man has been ordered to prison for his conviction of conspiracy to import and conspiracy to possess with intent to distribute methamphetamine, announced U.S. Attorney Ryan K. Patrick. A federal jury sitting in Brownsville returned its verdicts against Zack Anthony Sayas Oct. 24, 2017, following two days of trial and less than two hours of deliberation.
Today, U.S. District Judge Rolando Olvera considered the lack of criminal history and handed Sayas a 144-month sentence to be immediately followed by five years of supervised release.
During trial, the jury heard that Sayas had recruited and conspired with Jose Angel Reyes Jr., 24, also of Raymondville, to travel from Raymondville to Mexico with the intention of smuggling the methamphetamine and transporting it to Houston.
On Dec. 8, 2015, at approximately 6:15 a.m., Reyes attempted to enter the United States via the Veterans Port of Entry as the driver and single occupant of a silver Chevy Aveo. The car was randomly selected for secondary inspection, at which time officers discovered bundles wrapped in tape hidden in each door panel. The substance in the bundles tested positive for crystal methamphetamine and weighed approximately 11.94 kilograms. He was taken into custody at that time.
While detained, agents observed his cell phone receiving continuous messages from the same number. They were also able to obtain an extraction report that included previously deleted text messages from the same sender.
Reyes identified the individual that recruited him to go to Mexico as Sayas. Reyes was to travel to Brownsville where Sayas would take possession of his car and travel to Mexico where the vehicle would be loaded with drugs. Then both Reyes and Sayas would drive the car back to Houston to deliver the drugs. However, there was a slight change of plans and Reyes agreed to drive the car through the port of entry by himself and pick up Sayas on the U.S. side of the border. However, Reyes was intercepted at the Veteran’s Port of Entry.
Evidence showed that the phone number associated to Sayas was the same as the one that sent messages and voicemail to Reyes. The jury also heard that Sayas had driven the Chevy Aveo into Mexico through the Gateway Port of Entry on Dec. 7, 2015, and he re-entered the U.S. via the pedestrian lane the following day.
During the trial, Sayas attempted to convince the jury he was working the case as a confidential informant. However, the jury heard rebuttal testimony to the contrary, did not believe his claims and convicted him on all counts as charged.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Reyes previously pleaded guilty to possession with intent to distribute methamphetamine and later received a 100-month sentence.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorneys David Coronado and Ana Cano are prosecuting the case.
90 Kilos of Meth Gets Elsa Man 14 Years in PrisonRead the Press Release
McALLEN, Texas - A 21-year-old Elsa man has been ordered to federal prison for his part in a methamphetamine smuggling conspiracy, announced U.S. Attorney Ryan K. Patrick. Guillermo Calderon Jr. pleaded guilty in November 2017.
Today, U.S. District Judge Micaela Alvarez sentenced Calderon to 168 months in prison to be followed by a three-year-term of supervised release.
The investigation began in September 2017 when a tractor trailer crossed the border through the Pharr Port of Entry. The trailer was later found to have approximately 90 kilograms of methamphetamine concealed within its tires. Law enforcement followed the tractor trailer and later saw Calderon drive to the area where it had been parked. Calderon admitted he coordinated the delivery of narcotics in the trailers and sending money south in the trailers.
Calderon will remain in custody pending transfer to U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with assistance from Customs and Border Protection – Office of Field Operations and the Pharr Police Department. Assistant U.S. Attorney (AUSA) Joseph Leonard and former AUSA U.S. Attorney Lynn Wang prosecuted the case.
Texas Chicano Brotherhood Gang Member Heads to Federal PrisonRead the Press Release
McALLEN, Texas – A 38-year-old Edinburg man has been ordered to prison following his conviction of being a felon in possession of a firearm, announced U.S. Attorney Ryan Patrick. Ismael Tovar-Zavala pleaded guilty Aug. 8,2018.
Today, U.S. District Judge Micaela Alvarez ordered him to federal prison for 100 months. The court noted his lengthy and violent criminal history in assessing the sentence.
On April 21, 2016, authorities stopped Tovar-Zavala for a traffic offense. Upon investigation, they determined he was in possession of a loaded 7.62x39 mm Yugoslavia assault rifle with a high capacity magazine attached. As a seven-time convicted felon, he is prohibited from possessing a firearm or ammunition per federal law. He was further determined to be a Texas Chicano Brotherhood gang member.
Tovar-Zavala claimed he had the assault rifle for his “protection.”
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 Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation with the assistance of Hidalgo County Sheriff’s Office. Assistant U.S. Attorney David A. Lindenmuth prosecuted the case.
Seven Sent to Prison for Katy Bank RobberyRead the Press Release
HOUSTON – The seven men involved in the July 2017 armed robbery of First Community Credit Union in Katy have been ordered to federal prison, announced U.S. Attorney Ryan K. Patrick. A jury deliberated for approximately two hours following a four-day trial before convicting Walter Freeman Jordan aka “Wacko,” 31, and Johnathon Nico Wise, 27, both of Houston, on Jan. 25, 2018.
Both were charged and convicted of aiding and abetting aggravated bank robbery. Jordan was also convicted of aiding and abetting the unlawful use of a firearm in the commission of a crime of violence.
Five others - Jaylen Christine Loring, 22, Daryl Carlton Anderson, 33, Deandre Bendard Santee, 27, Raymond Demond Pace, 21, and Zelmer Samuel Bonner, 27, all of Houston, had pleaded guilty prior to trial.
Today, U.S. District Judge Keith P. Ellison, who presided over the trial, handed Jordan a 262-month sentence for the bank robbery as well as another 84 months for the firearms offense which must be served consecutively. Wise received a 121-month-term of imprisonment. Both will also be required to serve a term of five years of supervised release following completion of the prison term.
Pace received a 50-month sentence for the underlying bank robbery, while Loring, Santee, Anderson and Bonner were sentenced to 12, 105, 70 and 70, months, respectively. Pace and Bonner were also convicted on firearms charges and each received 84 months which must be served consecutively resulting in total sentences of 134 and 154 months, respectively.
At trial, the jury heard that at approximately 12:52 p.m. on July 25, 2017, a stolen black Toyota Tundra drove to the front of the First Community Credit Union located at 23120 Cinco Ranch Boulevard in Katy. Once there, Jordan, Bonner and Pace entered the bank and ordered everyone to get on the ground. While inside, Jordan and Bonner jumped the teller counter and demanded credit union employees to open the teller drawers. When one of those employees did not comply quickly enough, Bonner punched the employee in the head while yelling “hurry up!”
Pace kept customers and employees on the ground during the robbery. Soon thereafter, he yelled “the cops are down the street, let’s go!”
The robbers were communicating with the lookouts - Wise, Santee, Anderson and Loring - outside of the credit union via cell phone during the crime.
The robbers returned to the Toyota Tundra and fled the scene along with three other vehicles – a silver Chevrolet Malibu, silver Nissan Rogue and a maroon Volkswagen Jetta. Loring was apprehended a short time later in the Malibu as was Anderson who was driving the Jetta. Shortly thereafter, officers also stopped the Rogue and arrested Santee and Wise.
Authorities pursued the Tundra for 19 miles, which was travelling at speeds up to 120 mph east on I-10. Authorities were eventually able to apprehend Pace, Bonner and Jordan at the North Post Oaks Lofts apartment complex in Houston. Officers located a Springfield semi-automatic pistol from the Toyota Tundra as well as a Stoeger Cougar .40 Caliber semi-automatic pistol from inside the apartment where Jordan had been hiding.
During trial, the jury heard from Loring and Anderson who testified about the robbery plan and what transpired. Additional testimony came from more than 10 officers as well as an expert who explained how the cell phones were identified and used during the crime.
The defense attempted to convince the jury that Jordan and Wise had been mis-identified and had no knowledge of the robbery plan. They did not believe their claims and found them guilty as charged.
With the exception of Loring, who was permitted to remain on bond, all have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The case is the result of the Houston Law Enforcement Violent Crime Initiative created to proactively fight violent crime across the Greater Houston area. The FBI and the Houston Police Department conducted the investigation. Assistant U.S. Attorneys Richard D. Hanes and Heather Rae Winter are prosecuting the case.
Corpus Christi Man Gets Life in Prison for Multiple Sexual Exploitation CrimesRead the Press Release
CORPUS CHRISTI, Texas - A 30-year-old Corpus Christi man has been ordered to federal prison for the rest of his life following his admission he sexually assaulted four minor females, announced U.S. Attorney Ryan K. Patrick. Matthew Joseph Lucio pleaded guilty April 3, 2018, to two counts each of online solicitation and production of child pornography.
Today, U.S. District Judge Nelva Gonzales Ramos imposed the sentence, further ordering Lucio to pay $10,000 in restitution.
Additional information was also presented today, including testimony that one adult and eight minor females had reported Lucio drugged and sexually assaulted them. The court heard that authorities discovered several photographs of what appeared to be young females on Lucio’s digital devices along with more than 24,000 pages of social media communications between him and other unidentified minor females that were sexual in nature. Other images included photographs of Lucio with narcotics and holding firearms. The court also heard from the victims’ relatives detailing how Lucio’s offenses has impacted the their lives and their families.
In November 2017, the National Center for Missing and Exploited Children (NCMEC) notified authorities that Lucio had solicited a minor female via an internet messaging application for sexual intercourse. Law enforcement identified the minor female who confirmed the abuse. Days later, law enforcement received another NCMEC report that Lucio solicited a different minor female via an internet messaging application for sexual intercourse. Authorities identified the second minor female who also confirmed the abuse.
Law enforcement obtained a search warrant for Lucio’s residence, after which agents seized several digital devices and located narcotics. Forensic analysis of the devices led to the discovery of videos depicting the sexual assault of two different minor females. Both minors were located and also confirmed the abuse. All four minor females reported that Lucio drugged them before they were sexually assaulted.
Lucio was arrested on federal charges in February 2018 and has been in custody since that time where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations, Corpus Christi Police Department—Internet Crimes Against Children Task Force and the Nueces County District Attorney’s Office conducted the investigation with the assistance of NCMEC.
Assistant U.S. Attorney Hugo R. Martinez is prosecuting the case, which was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Mexican National Sentenced for Smuggling 53 Aliens in Tractor TrailerRead the Press Release
CORPUS CHRISTI, Texas – A Mexican National who was on a visitor visa has been ordered to federal prison for attempting to smuggle illegal aliens behind a load of produce, announced U.S. Attorney Ryan K. Patrick. Luis Valero-Carrizales, 39, pleaded guilty April 4, 2018.
Today, U.S. District Judge Nelva Gonzales Ramos handed Valero-Carrizales a 30-month sentence. Not a U.S. citizen, Valero-Carrizales is expected to face deportation proceedings following his release from prison.
At the time of his plea, Valero-Carrizales admitted he conspired to transport illegal aliens hidden behind a load of produce in the trailer portion of the 18-wheeler he was driving. On Dec. 16, 2017, Valero-Carrizales drove a freightliner and approached the primary inspection lane at the U.S. Border Patrol Checkpoint near Falfurrias. During a routine immigration inspection, a service canine alerted to the trailer.
During a subsequent search of the vehicle, authorities discovered 53 illegal aliens hidden inside. The temperature inside the refrigerated trailer was 54 degrees.
He was taken into custody at that time where he remains pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of the U.S. Border Patrol. Assistant U.S. Attorney Jeffrey S. Miller is prosecuting the case.
Heroin Traffickers Handed Significant Federal Prison TermsRead the Press Release
HOUSTON – Two Texas men have been ordered to federal prison following their convictions of possession with intent to distribute heroin, announced U.S. Attorney Ryan K. Patrick. Jose Jony Romero, 41, of Houston, and Ricardo Rodriguez, 31, of Laredo, pleaded guilty April 26 and 24, 2018, respectively.
Today, U.S. District Judge Keith Ellison ordered Romero to serve 188 months in federal prison based on his responsibility for 35 kilograms of seized heroin in addition to six kilograms of methamphetamine since 2015. Rodriguez received a 120-month-term of imprisonment for his participation in transporting the heroin to Houston.
The investigation began in October 2015. The investigation revealed Romero was planning to deliver methamphetamine to several individuals in Houston. After leaving Romero’s residence, authorities stopped their vehicle. Inside, law enforcement discovered a cardboard box with Tupperware containers containing approximately six kilograms of methamphetamine. Romero’s fingerprints were also found on the containers.
In March 2017, law enforcement stopped Rodriguez on interstate 10 in Fayette County. In the toolbox in the truck’s bed was were five wooden blocks which contained black tar heroin. Further investigation led authorities to discover the phone number Rodriguez called to finalize the delivery belonged to Romero. He was arrested as the heroin was delivered to him.
Agents opened the five wooden blocks and found 16 packages of narcotics, which totaled 32 kilograms of heroin and nearly one kilograms of methamphetamine. Inside Romero’s apartment, authorities also discovered an additional three kilograms of heroin and packaging material.
Romero has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. Previously released on bond, Rodriguez was permitted to remain on bond.
The Drug Enforcement Administration, Houston Police Department and Fayette County Sheriff’s Office conducted the investigation with assistance from the Harris County District Attorney’s Office. Assistant U.S. Attorney Robert Stabe is prosecuting the case.
Former Navy Sailor Heads to Prison for Distributing Animal Crush VideoRead the Press Release
CORPUS CHRISTI, Texas - A 26-year-old former Navy sailor has been ordered to federal prison for distributing a video depicting the drowning of puppies, announced U.S. Ryan K. Patrick. Former Petty Officer Third Class Daniel James O’Sullivan pleaded guilty March 28, 2018.
Today, U.S. District Judge Nelva Gonzalez Ramos handed O’Sullivan a 21-month sentence. O’Sullivan will also be required to serve a term of three years of supervised release following completion of the prison term.
In June 2016, Naval Criminal Investigative Service (NCIS) agents were notified that O’Sullivan would be in possession of disturbing videos depicting the torture and killing of animals. Authorities interviewed him at Naval Air Station Corpus Christi where he was stationed at the time. O’Sullivan admitted he distributed a video to an individual in Montana that depicted the drowning of puppies in a river. That individual admitted to receiving the video.
Law enforcement conducted a forensic search on his digital devices which resulted in the discovery of the video depicting the drowning of puppies and other animal crush videos. In one video, a dog’s mouth is closed with duct tape as it is set on fire. In another, a dog is thrown off a high-rise building. Other videos depict mice and baby chicks being ground-up in a blender.
Under federal law, it is illegal to depict - via photograph, motion-picture film, video, digital recording or electronic image - actual conduct in which one or more living non-human mammals, birds, reptiles or amphibians is intentionally crushed, burned, drowned, suffocated, impaled or otherwise subjected to serious bodily injury, and is obscene.
This is the second such case prosecuted in this district. The first resulted in a 57-month federal prison sentence and was believed to be the first indicted nationwide since the statute was amended in 2010.
In September 2017, O’Sullivan received an other than honorable discharge from the Navy.
O’Sullivan was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
NCIS conducted the investigation. Assistant U.S. Attorney Hugo R. Martinez is prosecuting the case.
Business Executive Arrested on Foreign Bribery Charges in Connection with Venezuela Bribery SchemeRead the Press Release
A dual U.S.-Venezuelan citizen who controlled multiple companies was arrested yesterday on foreign bribery charges for conspiring to make, and making, corrupt payments to an official of Venezuela’s state-owned and state-controlled energy company, Petroleos de Venezuela S.A. (PDVSA), in exchange for favorable business treatment with PDVSA.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ryan K. Patrick of the Southern District of Texas and Special Agent in Charge Mark Dawson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Houston Field Office made the announcement.
Jose Manuel Gonzalez Testino (Gonzalez), 48, was arrested at Miami International Airport, on an arrest warrant based on a criminal complaint filed in the Southern District of Texas that was unsealed yesterday. He made his initial appearance today before U.S. Magistrate Judge Lauren F. Louis of the Southern District of Florida. Gonzalez is charged with conspiring to violate the Foreign Corrupt Practices Act (FCPA) and paying bribes to a foreign official in violation of the FCPA.
According to the criminal complaint, Gonzalez and a co-conspirator paid at least $629,000 in bribes to a former PDVSA official in exchange for the official taking steps to (1) direct PDVSA contracts to Gonzalez’s companies, (2) give Gonzalez’s companies priority over other vendors to receive payments, and (3) award Gonzalez’s companies PDVSA contracts in U.S. dollars instead of Venezuelan bolivars.
The charges contained in the complaint are merely allegations and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
With the arrest of Gonzalez, the Justice Department has announced charges against 17 individuals, 12 of whom have pleaded guilty, as part of a larger, ongoing investigation by the U.S. government into bribery at PDVSA. HSI in Houston is conducting the ongoing investigation with assistance from HSI in Boston and Miami. Trial Attorneys Sarah E. Edwards and Jeremy R. Sanders of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys John P. Pearson and Robert S. Johnson of the Southern District of Texas are prosecuting the case. Assistant U.S. Attorney Kristine Rollison of the Southern District of Texas is handling the forfeiture aspects of the case. The Criminal Division’s Office of International Affairs also provided assistance.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Former Police Officers Sent to PrisonRead the Press Release
McALLEN, Texas – Two former San Juan police officers have been ordered to federal prison for lying to federal agents, announced U.S. Attorney Ryan K. Patrick. Following two jury trials in December 2017 and May 2018, Salvador Hernandez, 30, of Mission, and Richard Leon Castillo, 27, of Pharr, were convicted of making materially false statements to agents with the Drug Enforcement Administration (DEA) who were conducting an investigation into missing bundles of cocaine.
Today, U.S. District Judge Micaela Alvarez ordered Hernandez to serve 24 months in prison, while Castillo received a 16-month sentence. Both will also serve three years of supervised release following their prison terms. In imposing the sentences, the court noted she had no doubt the defendants knowingly and intentionally lied and tried to mislead DEA agents while they were conducting the criminal investigation. As former officers, Judge Alvarez also stated that Castillo and Hernandez swore an oath to uphold and enforce the law and that their criminal conduct tainted the entire community by eroding the community’s trust in law enforcement. Judge Alvarez upwardly departed from the sentencing guidelines because of the serious nature of their conduct, their positions of trust within the community, the need to promote respect for the law and the need to prevent future criminal conduct.
During both trials, the juries heard that on Aug. 27, 2016, authorities seized a load of cocaine from an abandoned vehicle in a San Juan orchard. The investigation revealed 40 bundles of cocaine were intentionally left in the vehicle. However, officers with the San Juan Police Department logged only 37 bundles into evidence.
During the course of the investigation into the missing cocaine, agents discovered the drugs had been stored in a vehicle belonging to Hernandez at the scene. DEA agents interviewed Hernandez, at which time he claimed he never opened the hatch once the drugs were placed in his unit. He added that while assisting in the search for a suspect, he helped search a shed with fellow officer Castillo and Border Patrol (BP) agents.
Authorities also interviewed Castillo, at which time he claimed never to have seen the narcotics prior to their arrival at the police department and that he did not know who transported the cocaine.
DEA then obtained body camera footage from Castillo that showed both officers had lied to DEA agents. In the video, Hernandez and Castillo finished searching a shed and then Hernandez allowed Castillo to touch the cocaine bundles. The footage also demonstrated the two men were alone when they discussed the fact that the bundles had not yet been counted. In the video, Hernandez told Castillo to pick up a bundle. When Castillo reached for one, Hernandez said, “that one’s mine.”
Further evidence presented to the jury revealed that when agents asked Castillo whether he was involved in stealing three kilograms of cocaine, he looked down and refused to answer the question. At the time of Hernandez’s arrest on drug charges, he questioned being taken into custody, noting there were “bigger fish involved.”
Previously released on bond, both were permitted to remain on bond and surrender to a U.S. Bureau of Prisons facility to be determined at a later date.
The DEA, FBI and Department of Homeland Security – Office of Inspector General conducted the investigation. Assistant U.S. Attorneys Kristen Rees and Bobby Lopez prosecuted the case.
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Gang Member Sentenced for Trafficking MarijuanaRead the Press Release
BROWNSVILLE, Texas – A 39-year-old Edinburg man has been ordered to federal prison following his conviction of trafficking 131.6 kilograms of marijuana, announced U.S. Attorney Ryan K. Patrick. Rogelio Ramos, a known member of the Vallucos street gang, pleaded guilty April 27, 2018.
Today, U.S. District Judge Fernando Rodriguez Jr. ordered Ramos to serve 87 months in federal prison to be immediately followed by four years of supervised release.
On March 9, 2018, authorities engaged in a vehicle pursuit after watching several individuals loading large bundles of marijuana into a Ford Taurus near the U.S. and Mexico border around Blue Town. The vehicle stopped and authorities watched Ramos run into a sugar cane field to hide. Agents found 12 bundles of marijuana in the backseat and trunk of the Taurus, totaling 131.6 kilograms.
Ramos admitted he was intending to distribute the marijuana within the United States.
Ramos has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration and Border Patrol conducted the investigation. Assistant U.S. Attorney Holly D’Andrea prosecuted the case.
Sam Kane Agrees to Repay Nearly $38 Million to Local RanchersRead the Press Release
CORPUS CHRISTI, Texas – Sam Kane Beef Processors LLC has entered into an agreement with the United States to comply with the Packers and Stockyards (P&S) Act and to begin to repay nearly $38 million currently owed to local livestock sellers, announced U.S. Attorney Ryan K. Patrick.
Following a hearing in Corpus Christi federal court today, Sam Kane has agreed to promptly pay for livestock purchases by the next business day after purchases are completed as the P&S Act requires. They have also agreed to a repayment plan which would result in full payment to local ranchers the nearly $38 million currently owed to them within the next 18 months. They must also preserve and administer the statutory trust and have agreed to the appointment of an independent chief restructuring officer to ensure compliance with all aspects of the agreement.
If Sam Kane fails to make any of the payments as agreed or abide by any terms of the agreement, the court will appoint a receiver to manage Sam Kane financial affairs.
On June 14, 2018, two complaints were filed against Sam Kane Beef Processors LLC for alleged violations of the Packers and Stockyards (P&S) Act. The complaints allege Sam Kane is failing to timely pay for livestock. Sam Kane is a fed steer and heifer slaughtering plant located in Corpus Christi and operates subject to the P&S Act.
Both complaints allege that as of June 8, 2018, Sam Kane owed approximately $34.96 million to unpaid livestock sellers at an average 38 days late with some instances up to 60 days late. The complaints allege Sam Kane’s failure to timely pay resulted in livestock sellers filing claims under the packer statutory trust totaling more than $142 million.
The U.S. Department of Agriculture (USDA) filed an administrative complaint alleging Sam Kane failed to pay the full purchase price for livestock within the time period required by the P&S Act on numerous occasions from on or about Jan. 27, 2017, through the date of the complaint. The P&S Act authorizes civil penalties of up to $11,000 per violation.
The P&S Act is a fair trade practice and payment protection law that promotes fair and competitive marketing environments for the livestock, meat and poultry industries. As it relates to livestock sales, the P&S Act requires packers to pay the full purchase price of livestock the next business day following completion of the transaction. The P&S Act authorizes the USDA to file administrative complaints to enforce violations. Concurrently, the Act also authorizes the Department of Justice to seek injunctive relief while administrative enforcement actions are pending before the USDA.
The U.S. Attorney’s Office for the Southern District of Texas subsequently filed a federal complaint seeking a preliminary injunction ordering Sam Kane to comply with the P&S Act while the administrative complaint is pending before the USDA.
Both complaints follow a prior Secretary of Agriculture order issued Jan. 17, 2017, requiring Sam Kane cease and desist from failing to pay when due the full purchase price of livestock. They also allege Sam Kane violated this order.
Assistant U.S. Attorney Chad W. Cowan is handling the matter.
Rio Grande City Man Ordered to Prison in Multi-Defendant Drug ConspiracyRead the Press Release
BROWNSVILLE, Texas – A 38-year-old South Texas man has been sentenced for his involvement in a multi-state drug trafficking conspiracy that had been trafficking marijuana and cocaine since 2003, announced U.S. Attorney Ryan K. Patrick. Arnaldo Bermea, of Rio Grande City, pleaded guilty Aug. 1, 2017.
Today, U.S. District Judge Andrew S. Hanen sentenced Bermea to a 102-month term of imprisonment to be immediately followed by a five-year term of supervised release. He was also ordered to pay a $10,000 fine.
Judge Hanen previously sentenced six other defendants in connection with this conspiracy. Jose Manuel Portillo-Guerrero, 42, of Valadeces, Tamaulipas, Mexico, Javier Alejandro Aldava, 30, and Oscar Erick Calvillo-Lores, 38, both of Reynosa, Tamaulipas Mexico, all undocumented aliens were sentenced to 52, 120 and 192 months in prison, respectively. Heber Bienvendio Tejada, 37, of New Jersey, received a 48-month prison term while Moises Ramirez, 34, and Ramiro Espinoza, 48, both of Brownville, were ordered to serve 60 and 81 months, respectively.
All seven conspirators were part of a multi-state drug trafficking and money laundering organization that had existed since 2003. The drug trafficking organization, based out of the Rio Grande Valley, would hire truck drivers to haul loads of produce to northern states with ton quantities of marijuana and multi-kilogram quantiles of cocaine hidden in false compartments. Drug proceeds would then be transported back to the Rio Grande Valley.
All defendants except Tejada, Ramirez and Espinoza, had pleaded guilty to conspiracy to possess with intent to distribute more than 1000 kilograms of marijuana. The evidence at sentencing indicated that on Aug. 10, 2011, agents approached a suspected narcotics stash house in Mission and found Portillo-Guerrero, Calvillo-Lores and Aldava. Authorities arrested all three after agents discovered 2,120 kilograms of marijuana within the garage of the residence. They also found marijuana hidden within concreate pillars and some hidden within a trailer inside the garage.
Bermea was coordinating the transportation of marijuana within the stash house to other parts of the country.
Tejada, Ramirez and Espinoza each pleaded guilty to conspiracy to possess with intent to distribute more than five kilograms of cocaine in connection with 98 kilograms of cocaine seized from within an 18-wheeler Tejada was driving also on Aug. 10, 2011.
Bermea will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The case was the result of a nearly three-year Organized Crime Drug Enforcement Task Force investigation. The Drug Enforcement Administration conducted the investigation with the assistance of IRS-Criminal Investigation; Immigration and Customs Enforcement’s Homeland Security Investigations; Bureau of Alcohol, Tobacco, Firearms and Explosives; FBI; Hidalgo County High Intensity Drug Trafficking Area task force; Border Patrol and the Brownsville Police Department. Assistant U.S. Attorney Angel Castro is prosecuting the case.
Meth Smuggler Ordered to Federal PrisonRead the Press Release
BROWNSVILLE, Texas – A 19-year-old U.S. citizen who resided in Matamoros, Mexico, has been ordered to prison for smuggling methamphetamine through the local port of entry, announced U.S. Attorney Ryan K. Patrick. Brenda Guerra Rios pleaded guilty Jan. 17, 2018, to possession with intent to distribute more than 50 grams of methamphetamine.
Today, U.S. District Judge Andrew S. Hanen ordered Guerra-Rios to federal prison for 66 months. The sentence will be immediately followed by three years of supervised release.
On Nov. 7, 2017, Guerra-Rios attempted to make entry into the United States from Mexico through the pedestrian lane at the Gateway International Port of Entry in Brownsville. A search in secondary inspection revealed a package hidden inside a girdle near her abdomen. The package contained 491.5 grams of methamphetamine.
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.
Immigration and Customs Enforcement’s Homeland Security Investigations and Customs and Border Protection conducted the investigation. Assistant U.S. Attorney David Coronado prosecuted the case.
Brownsville Man Gets 20 Years for Sexual Exploitation of a ChildRead the Press Release
BROWNSVILLE, Texas – A 26-year-old Brownsville resident has been ordered to federal prison following his conviction for production of child pornography, announced U.S. Attorney Ryan K. Patrick. Manuel Teodoro Perez pleaded guilty Feb. 14, 2018.
Today, U.S. District Judge Andrew Hanen sentenced Perez to 240 months in federal prison. At the hearing, the court heard that Perez molested a four-year-old child on at least five separate occasions. In one instance, Perez molested the child while another younger child was present in the room. The court also heard that Perez was in possession of 628 images and 57 videos of child pornography at the time of his arrest.
In handing down the sentence, Judge Hanen noted the nature and circumstances of the offense as the justification for the 20-year sentence. Perez will also serve 20 years on supervised release following the sentence, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. Perez will also be ordered to register as a sex offender.
In April 2017, the Rio Grande Valley Child Exploitation Task Force initiated an investigation into an email address associated with the distribution and downloading of child pornography through the use of internet applications. Perez was ultimately located at his residence in Brownsville and was found to be the possessor of the email address. Further investigation revealed Perez was in possession of numerous images and videos of child pornography – 628 images and 57 videos in total.
During the forensic analysis of the digital storage device Perez was utilizing to store his child pornography collection, law enforcement discovered a video of Perez sexually assaulting a four-year-old minor child. Further investigation revealed Perez had sexually assaulted the minor child on five separate occasions.
Immigration and Customs Enforcement’s Homeland Security Investigations and the Rio Grande Valley Child Exploitation Task Force conducted the investigation.
Assistant U.S. Attorneys Jason Corley and Ana Cano 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."
Houston Tax Preparer Convicted of Tax FraudRead the Press Release
HOUSTON - The owner of Crown Financial Services has entered a guilty plea to aiding and assisting in preparing false tax returns, announced U.S. Attorney Ryan K. Patrick.
Fatai Adeniji was the sole tax preparer for Crown Financial Services. From 2012 through 2016, he admitted he prepared false tax returns for his clients which contained false income, false expenses, false education credits and false earned income credits.
Further, from 2013 through 2015, Adeniji prepared and filed false tax returns for himself which omitted most of his earned income from tax preparation and claimed false education credits.
U.S. District Judge Keith Ellison accepted the plea and set sentencing for Oct. 4, 2018. At that time, Adeniji faces up to three years in federal prison as well as a possible $100,000 fine.
He was permitted to remain on bond pending that hearing.
IRS – Criminal Investigation conducted the investigation. Assistant U.S. Attorney Vernon Lewis is prosecuting the case.
24 Sentenced in Multimillion Dollar India-Based Call Center Scam Targeting U.S. VictimsRead the Press Release
HOUSTON – Twenty-one members of a massive India-based fraud and money laundering conspiracy that defrauded thousands of U.S. residents of hundreds of millions of dollars were sentenced this week to terms of imprisonment up to 20 years. Three other conspirators were sentenced earlier this year for laundering proceeds for the conspiracy, which was operated out of India-based call centers that targeted U.S. residents in various telephone fraud schemes. This week’s sentencing hearings took place in Houston before the Honorable David Hittner of the Southern District of Texas.
Attorney General Jeff Sessions of the U.S. Department of Justice, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ryan Patrick of the Southern District of Texas, Acting Executive Associate Director Derek N. Benner of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Inspector General J. Russell George of the U.S. Treasury Inspector General for Tax Administration (TIGTA), and Special Agent in Charge David Green of the U.S. Department of Homeland Security (DHS) Office of Inspector General (OIG) made the announcement today.
“The stiff sentences imposed this week represent the culmination of the first-ever large scale, multi-jurisdiction prosecution targeting the India call center scam industry,” said Sessions. “This case represents one of the most significant victories to date in our continuing efforts to combat elder fraud and the victimization of the most vulnerable members of the U.S. public. The transnational criminal ring of fraudsters and money launderers who conspired to bilk older Americans, legal immigrants and many others out of their life savings through their lies, threats and financial schemes must recognize that all resources at the Department’s disposal will be deployed to shut down these telefraud schemes, put those responsible in jail and bring a measure of justice to the victims.”
“This type of fraud is sickening,” said Patrick. “However, after years of investigation and incredible hard work by multiple agents and attorneys, these con artists are finally headed to prison. Their cruel tactics preyed on some very vulnerable people, thereby stealing millions from them. These sentences should send a strong message that we will follow the trail no matter how difficult and seek justice for those victimized by these types of transnational schemes. We will simply not stand by and allow criminals to use the names of legitimate government agencies to enrich themselves by victimizing others.”
“Today’s sentences should serve as a strong deterrent to anyone considering taking part in similar scams, and I hope that they provide a sense of justice to the victims as well,” said Benner. “There is no safe haven from U.S. law enforcement. HSI will continue to utilize our unique investigative mandate, in conjunction with our local, state and Federal partners, to attack and dismantle the criminal enterprises who would seek to manipulate U.S. institutions and taxpayers.”
“The sentences imposed on these defendants validate our efforts to bring to justice scammers who defraud taxpayers by impersonating employees of the IRS,” said George. “I wish to thank the Department of Justice, the multiple federal agencies involved and most importantly, my own investigators who continue to devote countless hours to these cases. Taxpayers must remain wary of unsolicited telephone calls from individuals claiming to be IRS employees. If any taxpayer believes they or someone they know is a victim of an IRS impersonation scam, they should report it to TIGTA at www.tigta.gov<http://www.tigta.gov> or by calling 1-800-366-4484.”
“The sentences imposed this week provide a clear deterrent to those who would seek to enrich themselves by extorting the most vulnerable in our society,” said Green. “These scammers should know that their actions carry real consequences, both for their victims and for themselves, and that there are dedicated agents and prosecutors who will go above and beyond to find them, identify them and hold them accountable for their crimes.”
Miteshkumar Patel, 42, of Illinois, was sentenced to serve 240 months in prison followed by three years of supervised release on the charge of money laundering conspiracy. According to the factual basis of his plea agreement, Patel served as the manager of a Chicago-based crew of “runners” that liquidated and laundered fraud proceeds generated by callers at India-based call centers. Those callers used call scripts and lead lists to target victims throughout the United States with telefraud schemes in which the callers impersonated U.S. government employees from the IRS and U.S. Citizenship and Immigration Services (USCIS). The callers duped victims into believing that they owed money to the U.S. government and would be arrested or deported if they did not pay immediately. After the victims transferred money to the callers, a network of U.S.-based runners moved expeditiously to liquidate and launder fraud proceeds through the use of anonymous stored value cards. In addition to recruiting, training and tasking runners in his crew, Patel also coordinated directly with the Indian side of the conspiracy about the operation of the scheme. Patel was held accountable for laundering between $9.5 and $25 million for the scheme.
Hardik Patel, 31, of Illinois, was sentenced to serve 188 months in prison followed by three years of supervised release on the charge of wire fraud conspiracy. Hardik Patel consented to removal to India upon completion of his prison term. According to the factual basis of his plea agreement, Hardik Patel was a co-owner and manager of an India-based call center involved in the conspiracy. In addition to managing the day-to-day operations of a call center, Patel also processed payments and did bookkeeping for the various call centers involved in the fraud scheme. One of the India-based co-defendants with whom Patel communicated about the scheme was Sagar “Shaggy” Thakar, a payment processor that Indian authorities arrested in April 2017 in connection with call center fraud. After moving to the United States in 2015, Hardik Patel continued to promote the conspiracy by recruiting runners to liquidate fraud proceeds. He was held accountable for laundering between $3.5 and $9.5 million dollars for the scheme.
Sunny Joshi, aka Sharad Ishwarlal Joshi and Sunny Mahashanker Joshi, 47, of Sugar Land, Texas, was sentenced to serve 151 months in prison on the charge of money laundering conspiracy and 120 months in prison for naturalization fraud to run concurrently followed by three years of supervised release. According to the factual basis of his plea agreement, Joshi was a member of a Houston-based crew of runners that he co-managed with his brother, co-defendant Mike Joshi aka Rajesh Bhatt. Sunny Joshi communicated extensively with India-based co-defendants about the operations of the scheme and was held accountable for laundering between $3.5 and $9.5 million. Additionally, in connection with his sentence on the immigration charge, Judge Hittner entered an order revoking Joshi’s U.S. citizenship and requiring him to surrender his certificate of naturalization.
Twenty-two of the defendants sentenced before Judge Hittner were held jointly and severally liable for restitution of $8,970,396 payable to identified victims of their crimes. Additionally, the court entered individual preliminary orders of forfeiture against 21 defendants for assets that were seized in the case, and money judgments totaling more than $72,942,300.
Eighteen other defendants were also sentenced in Houston before Judge Hittner this week:
• Fahad Ali, 25, of Indiana, was sentenced to serve 108 months in prison followed by three years of supervised release on one count of money laundering conspiracy. Judge Hittner also recommended deportation upon completion of his sentence.
• Montu Barot, 30, of Illinois, was sentenced to serve 63 months in prison followed by three years of supervised release on one count of conspiracy. Judge Hittner entered a stipulated judicial order to remove Barot to India at the conclusion of his sentence.
• Rajesh Bhatt, aka Mike Joshi, 53, of Sugar Land, Texas, was sentenced to serve 145 months in prison followed by three years of supervised release on one count of money laundering conspiracy. Judge Hittner entered a stipulated judicial order to remove Bhatt to India at the conclusion of his sentence.
• Ashvinbhai Chaudhari, 28, of Pearsall, Texas, was sentenced to serve 87 months in prison followed by three years of supervised release on one count of money laundering conspiracy.
• Jagdish Chaudhari, 39, of Alabama, was sentenced to serve 108 months in prison followed by three years of supervised release on one count of money laundering conspiracy. Judge Hittner entered a stipulated judicial order to remove Chaudhari to India at the conclusion of his sentence.
• Rajesh Kumar, 39, of Arizona, was sentenced to serve 60 months in prison followed by three years of supervised release on one count of conspiracy.
• Jerry Norris, 47, of California, was sentenced to serve 60 months in prison followed by three years of supervised release on one count of conspiracy.
• Nilesh Pandya, 54, of Stafford, Texas, was sentenced to serve three years of probation on one count of conspiracy.
• Nilam Parikh, 46, of Alabama, was sentenced to serve 48 months in prison followed by three years of supervised release on one count of money laundering conspiracy.
• Bharatkumar Patel, 43, of Illinois, was sentenced to serve 50 months in prison followed by three years of supervised release on one count of money laundering conspiracy. Judge Hittner entered a judicial order to remove Patel to India at the conclusion of his sentence.
• Bhavesh Patel, 47, of Alabama, was sentenced to serve 121 months in prison followed by three years of supervised release on one count of money laundering conspiracy.
• Dilipkumar A. Patel, 53, of California, was sentenced to serve 108 months in prison followed by three years of supervised release on one count of conspiracy. Judge Hittner entered a stipulated judicial order to remove Patel to India at the conclusion of his sentence.
• Dilipkumar R. Patel, 30, of Florida, was sentenced to serve 52 months in prison followed by three years of supervised release on one count of conspiracy.
• Harsh Patel, 28, of New Jersey, was sentenced to serve 82 months in prison followed by three years of supervised release on one count of money laundering conspiracy. Judge Hittner also recommended deportation upon completion of his sentence.
• Nisarg Patel, 26, of New Jersey, was sentenced on one count of conspiracy. He received a prison term of 48 months in prison followed by three years of supervised release.
• Praful Patel, 50, of Florida, was sentenced to serve 60 months in prison followed by Three years of supervised release on one count of conspiracy.
• Rajubhai Patel, 32, of Illinois, was sentenced to serve 151 months in prison followed by three years of supervised release on one count of money laundering conspiracy.
• Viraj Patel, 33, of California, was sentenced to serve 165 months in prison followed by three years of supervised release on one count of money laundering conspiracy. Judge Hittner entered a stipulated judicial order to remove Patel to India at the conclusion of his sentence.
In addition to these 21 defendants, three others were previously sentenced for their involvement in the same fraud and money laundering scheme:
• Asmitaben Patel, 34, of Illinois, was sentenced before Judge Hittner on March 23. She received 24 months in prison on the charge of conspiracy.
• Dipakkumar Patel, 38, of Illinois, was sentenced before Judge Eleanor L. Ross in the Northern District of Georgia, on Feb. 14. Patel, who pleaded guilty to charges of conspiracy and passport fraud, was sentenced to serve a prison term of 51 months, to run concurrently. He was also ordered to pay restitution in the amount of $128,006.26.
• Raman Patel, 82, of Arizona, was sentenced before Judge John Tuchi in the District of Arizona on Jan. 29. In connection with his plea agreement, Raman Patel received a probationary sentence for his plea to conspiracy. He was also ordered to pay restitution in the amount of $76,314.38.
According to various admissions made in connection with the defendants’ guilty pleas, between 2012 and 2016, the defendants and their conspirators perpetrated a complex fraud and money laundering scheme in which individuals from call centers located in Ahmedabad, India, frequently impersonated officials from the IRS or USCIS in a ruse designed to defraud victims located throughout the United States. Using information obtained from data brokers and other sources, call center operators targeted U.S. victims who were threatened with arrest, imprisonment, fines or deportation if they did not pay alleged monies owed to the government. Victims who agreed to pay the scammers were instructed how to provide payment, including by purchasing stored value cards or wiring money. Once a victim provided payment, the call centers turned to a network of runners based in the United States to liquidate and launder the extorted funds as quickly as possible by purchasing reloadable cards or retrieving wire transfers. In a typical scenario, call centers directed runners to purchase these stored value reloadable cards and transmit the unique card number to India-based co-conspirators who registered the cards using the misappropriated personal identifying information (PII) of U.S. citizens. The India-based co-conspirators then loaded these cards with scam funds obtained from victims. The runners used the stored value cards to purchase money orders that they deposited into the bank account of another person. For their services, the runners would earn a specific fee or a percentage of the funds. Runners also received victims’ funds via wire transfers, which were retrieved under fake names and through the use of using false identification documents, direct bank deposits by victims and Apple iTunes or other gift cards that victims purchased.
The indictment in this case also charged 32 India-based conspirators and five India-based call centers with general conspiracy, wire fraud conspiracy and money laundering conspiracy. These defendants have yet to be arraigned in this case. An indictment is merely an allegation and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
HSI, DHS-OIG, and TIGTA led the investigation of this case. Also providing significant support were: the Criminal Division’s Office of International Affairs; Ft. Bend County Sheriff’s Office; police departments in Hoffman Estates and Naperville, Illinois, Leonia, New Jersey; San Diego County District Attorney’s Office Family Protection/Elder Abuse Unit; U.S. Secret Service; U.S. Small Business Administration Office of Inspector General; IOC-2; INTERPOL Washington; USCIS; U.S. State Department’s Diplomatic Security Service; and U.S. Attorney’s Offices of the Northern District of Alabama, District of Arizona, Central District of California, Northern District of California, District of Colorado, Northern District of Florida, Middle District of Florida, Northern District of Georgia, Northern District of Illinois, Northern District of Indiana, Eastern District of Louisiana, District of Nevada and the District of New Jersey. The Federal Communications Commission’s Enforcement Bureau provided assistance in TIGTA’s investigation. Additionally, the Executive Office for U.S. Attorneys (EOUSA), Legal and Victim Programs, provided significant support to the prosecution.
Assistant U.S. Attorneys Mark McIntyre and Craig Feazel of the Southern District of Texas, Senior Trial Attorney Michael Sheckels and Trial Attorney Mona Sahaf of the Criminal Division’s Human Rights and Special Prosecutions Section (HRSP) and Trial Attorney Amanda S. Wick of the Criminal Division’s Money Laundering and Asset Recovery Section prosecuted the case. Kaitlin Gonzalez of HRSP was the paralegal for this case.
A Department of Justice website has been established to provide information about the case to already identified and potential victims, and the public. Anyone who believes they may be a victim of fraud or identity theft in relation to this investigation or other telefraud scam phone calls may contact the FTC via this website.
Anyone who wants additional information about telefraud scams generally, or preventing identity theft or fraudulent use of their identity information, may obtain helpful information on the IRS tax scams website, the FTC phone scam website and the FTC identity theft website.
24 Defendants Sentenced in Multimillion Dollar India-Based Call Center Scam Targeting U.S. VictimsRead the Press Release
Twenty-one members of a massive India-based fraud and money laundering conspiracy that defrauded thousands of U.S. residents of hundreds of millions of dollars were sentenced this week to terms of imprisonment up to 20 years. Three other conspirators were sentenced earlier this year for laundering proceeds for the conspiracy, which was operated out of India-based call centers that targeted U.S. residents in various telephone fraud schemes. This week’s sentencing hearings took place in Houston, Texas, before the Honorable David Hittner of the Southern District of Texas.
Attorney General Jeff Sessions of the U.S. Department of Justice, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ryan Patrick of the Southern District of Texas, Acting Executive Associate Director Derek N. Benner of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Inspector General J. Russell George of the U.S. Treasury Inspector General for Tax Administration (TIGTA), and Special Agent in Charge David Green of the U.S. Department of Homeland Security (DHS) Office of Inspector General (OIG) Houston, Texas made the announcement today.
“The stiff sentences imposed this week represent the culmination of the first-ever large scale, multi-jurisdiction prosecution targeting the India call center scam industry,” said Attorney General Sessions. “This case represents one of the most significant victories to date in our continuing efforts to combat elder fraud and the victimization of the most vulnerable members of the U.S. public. The transnational criminal ring of fraudsters and money launderers who conspired to bilk older Americans, legal immigrants and many others out of their life savings through their lies, threats and financial schemes must recognize that all resources at the Department’s disposal will be deployed to shut down these telefraud schemes, put those responsible in jail, and bring a measure of justice to the victims.”
“This type of fraud is sickening,” said U.S. Attorney Patrick. “However, after years of investigation and incredible hard work by multiple agents and attorneys, these con artists are finally headed to prison. Their cruel tactics preyed on some very vulnerable people, thereby stealing millions from them. These sentences should send a strong message that we will follow the trail no matter how difficult and seek justice for those victimized by these types of transnational schemes. We will simply not stand by and allow criminals to use the names of legitimate government agencies to enrich themselves by victimizing others.”
“Today’s sentences should serve as a strong deterrent to anyone considering taking part in similar scams, and I hope that they provide a sense of justice to the victims, as well,” said HSI Acting Executive Associate Director Derek N. Benner. “There is no safe haven from U.S. law enforcement. HSI will continue to utilize our unique investigative mandate, in conjunction with our local, state, and federal partners, to attack and dismantle the criminal enterprises who would seek to manipulate U.S. institutions and taxpayers.”
“The sentences imposed on these defendants validate our efforts to bring to justice scammers who defraud taxpayers by impersonating employees of the Internal Revenue Service,” said Inspector General J. Russell George. “I wish to thank the Department of Justice, the multiple federal agencies involved, and most importantly, my own investigators who continue to devote countless hours to these cases. Taxpayers must remain wary of unsolicited telephone calls from individuals claiming to be IRS employees. If any taxpayer believes they or someone they know is a victim of an IRS impersonation scam, they should report it to TIGTA at www.tigta.gov or by calling 1-800-366-4484.”
“The sentences imposed this week provide a clear deterrent to those who would seek to enrich themselves by extorting the most vulnerable in our society,” said DHS-OIG Special Agent in Charge Green. “These scammers should know that their actions carry real consequences, both for their victims and for themselves, and that there are dedicated agents and prosecutors who will go above and beyond to find them, identify them and hold them accountable for their crimes.”
Miteshkumar Patel, 42, of Illinois, was sentenced to serve 240 months in prison followed by three years of supervised release on the charge of money laundering conspiracy. According to the factual basis of his plea agreement, Patel served as the manager of a Chicago-based crew of “runners” that liquidated and laundered fraud proceeds generated by callers at India-based call centers. Those callers used call scripts and lead lists to target victims throughout the United States with telefraud schemes in which the callers impersonated U.S. government employees from the IRS and U.S. Citizenship and Immigration Services (USCIS). The callers duped victims into believing that they owed money to the U.S. government and would be arrested or deported if they did not pay immediately. After the victims transferred money to the callers, a network of U.S.-based runners moved expeditiously to liquidate and launder fraud proceeds through the use of anonymous stored value cards. In addition to recruiting, training, and tasking runners in his crew, Patel also coordinated directly with the Indian side of the conspiracy about the operation of the scheme. Patel was held accountable for laundering between $9.5 and $25 million for the scheme.
Hardik Patel, 31, of Illinois, was sentenced to serve 188 months in prison followed by three years of supervised release on the charge of wire fraud conspiracy. Hardik consented to removal to India upon completion of his prison term. According to the factual basis of his plea agreement, Patel was a co-owner and manager of an India-based call center involved in the conspiracy. In addition to managing the day-to-day operations of a call center, Patel also processed payments and did bookkeeping for the various call centers involved in the fraud scheme. One of the India-based co-defendants with whom Patel communicated about the scheme was Sagar “Shaggy” Thakar, a payment processor that Indian authorities arrested in April 2017 in connection with call center fraud. After moving to the United States in 2015, Patel continued to promote the conspiracy by recruiting runners to liquidate fraud proceeds. Patel was held accountable for laundering between $3.5 and $9.5 million dollars for the scheme.
Sunny Joshi, aka Sharad Ishwarlal Joshi and Sunny Mahashanker Joshi, 47, of Texas, was sentenced to serve 151 months in prison on the charge of money laundering conspiracy, and 120 months in prison on the charge of naturalization fraud to run concurrent followed by three years of supervised release. According to the factual basis of his plea agreement, Joshi was a member of a Houston-based crew of runners that he co-managed with his brother, co-defendant Mike Joshi, aka Rajesh Bhatt. Sunny Joshi communicated extensively with India-based co-defendants about the operations of the scheme, and was held accountable for laundering between $3.5 and $9.5 million. Additionally, in connection with his sentence on the immigration charge, Judge Hittner entered an order revoking Joshi’s U.S. citizenship and requiring him to surrender his certificate of naturalization.
Twenty-two of the defendants sentenced before Judge Hittner were held jointly and severally liable for restitution of $8,970,396 payable to identified victims of their crimes. Additionally, the court entered individual preliminary orders of forfeiture against 21 defendants for assets that were seized in the case, and money judgments totaling over $72,942,300.
Eighteen other defendants were also sentenced in Houston before Judge Hittner this week:
- Fahad Ali, 25, of Indiana, was sentenced to serve 108 months in prison followed by three years of supervised release on one count of money laundering conspiracy. Judge Hittner also recommended deportation upon completion of his sentence.
- Montu Barot, 30, of Illinois, was sentenced to serve 60 months in prison followed by three years of supervised release on one count of conspiracy. Judge Hittner entered a stipulated judicial order to remove Barot to India at the conclusion of his sentence.
- Rajesh Bhatt, aka Mike Joshi, 53, of Texas, was sentenced to serve 145 months in prison followed by three years of supervised release on one count of money laundering conspiracy. Judge Hittner entered a stipulated judicial order to remove Bhatt to India at the conclusion of his sentence.
- Ashvinbhai Chaudhari, 28, of Texas, was sentenced to serve 87 months in prison followed by three years of supervised release on one count of money laundering conspiracy.
- Jagdish Chaudhari, 39, of Alabama, was sentenced to serve 108 months in prison followed by three years of supervised release on one count of money laundering conspiracy. Judge Hittner entered a stipulated judicial order to remove Chaudhari to India at the conclusion of his sentence.
- Rajesh Kumar, 39, of Arizona, was sentenced to serve 60 months in prison followed by three years of supervised release on one count of conspiracy. Judge Hittner recommended deportation to India following his prison sentence.
- Jerry Norris, 47, of California, was sentenced to serve 60 months in prison followed by three years of supervised release on one count of conspiracy.
- Nilesh Pandya, 54, of Texas, was sentenced to serve three years probation on one count of conspiracy.
- Nilam Parikh, 46, of Alabama, was sentenced to serve 48 months in prison followed by three years of supervised release on one count of money laundering conspiracy.
- Bharatkumar Patel, 43, of Illinois, was sentenced to serve 50 months in prison followed by three years of supervised release on one count of money laundering conspiracy. Judge Hittner entered a judicial order to remove Patel to India at the conclusion of his sentence.
- Bhavesh Patel, 47, of Alabama, was sentenced to serve 121 months in prison followed by three years of supervised release on one count of money laundering conspiracy.
- Dilipkumar A. Patel, 53, of California, was sentenced to serve 108 months in prison followed by three years of supervised release on one count of conspiracy. Judge Hittner entered a stipulated judicial order to remove Patel to India at the conclusion of his sentence.
- Dilipkumar R. Patel, 39, of Florida, was sentenced to serve 52 months in prison followed by three years of supervised release on one count of conspiracy.
- Harsh Patel, 28, of New Jersey, was sentenced to serve 82 months in prison followed by three years of supervised release on one count of money laundering conspiracy. Judge Hittner also recommended deportation upon completion of his sentence.
- Nisarg Patel, 26, of New Jersey, was sentenced to serve 48 months in prison followed by three years of supervised release on one count of conspiracy. Judge Hittner recommended deportation to India following his prison sentence.
- Praful Patel, 50, of Florida, was sentenced to serve 60 months in prison followed by three years of supervised release on one count of conspiracy.
- Rajubhai Patel, 32, of Illinois, was sentenced to serve 151 months in prison followed by three years of supervised release on one count of money laundering conspiracy.
- Viraj Patel, 33, of California, was sentenced to serve 165 months in prison followed by three years of supervised release on one count of money laundering conspiracy. Judge Hittner entered a stipulated judicial order to remove Patel to India at the conclusion of his sentence.
In addition to these 21 defendants, three others were previously sentenced for their involvement in the same fraud and money laundering scheme:
- Asmitaben Patel, 34, of Illinois, was sentenced before Judge Hittner in the Southern District of Texas, Houston Division, on March 23. She was sentenced to serve 24 months in prison on the charge of conspiracy.
- Dipakkumar Patel, 38, of Illinois, was sentenced before Judge Eleanor L. Ross in the Northern District of Georgia, Atlanta Division, on Feb. 14. Patel, who pleaded guilty to charges of conspiracy and passport fraud, was sentenced to serve a prison term of 51 months, to run concurrently. He was also ordered to pay restitution in the amount of $128,006.26.
- Raman Patel, 82, of Arizona, was sentenced before Judge John Tuchi in the District of Arizona, Phoenix Division, on Jan. 29. In connection with his plea agreement, Raman Patel received a probationary sentence for his plea to conspiracy. He was also ordered to pay restitution in the amount of $76,314.38.
According to various admissions made in connection with the defendants’ guilty pleas, between 2012 and 2016, the defendants and their conspirators perpetrated a complex fraud and money laundering scheme in which individuals from call centers located in Ahmedabad, India, frequently impersonated officials from the IRS or USCIS in a ruse designed to defraud victims located throughout the United States. Using information obtained from data brokers and other sources, call center operators targeted U.S. victims who were threatened with arrest, imprisonment, fines or deportation if they did not pay alleged monies owed to the government. Victims who agreed to pay the scammers were instructed how to provide payment, including by purchasing stored value cards or wiring money. Once a victim provided payment, the call centers turned to a network of runners based in the United States to liquidate and launder the extorted funds as quickly as possible by purchasing reloadable cards or retrieving wire transfers. In a typical scenario, call centers directed runners to purchase these stored value reloadable cards and transmit the unique card number to India-based co-conspirators who registered the cards using the misappropriated personal identifying information (PII) of U.S. citizens. The India-based co-conspirators then loaded these cards with scam funds obtained from victims. The runners used the stored value cards to purchase money orders that they deposited into the bank account of another person. For their services, the runners would earn a specific fee or a percentage of the funds. Runners also received victims’ funds via wire transfers, which were retrieved under fake names and through the use of using false identification documents, direct bank deposits by victims, and Apple iTunes or other gift cards that victims purchased.
The indictment in this case also charged 32 India-based conspirators and five India-based call centers with general conspiracy, wire fraud conspiracy, and money laundering conspiracy. These defendants have yet to be arraigned in this case. An indictment is merely an allegation and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
HSI, DHS-OIG, and TIGTA led the investigation of this case. Also providing significant support were: the Criminal Division’s Office of International Affairs; the Ft. Bend, Texas, County Sheriff’s Department; the Hoffman Estates, Illinois, Police Department; the Leonia, New Jersey, Police Department; the Naperville, Illinois, Police Department; the San Diego County District Attorney’s Office Family Protection/Elder Abuse Unit; the U.S. Secret Service; U.S. Small Business Administration Office of Inspector General; IOC-2; INTERPOL Washington; USCIS; U.S. State Department’s Diplomatic Security Service; and the U.S. Attorney’s Offices of the Northern District of Alabama, District of Arizona, Central District of California, Northern District of California, District of Colorado, Northern District of Florida, Middle District of Florida, Northern District of Georgia, Northern District of Illinois, Northern District of Indiana, Eastern District of Louisiana, District of Nevada, and the District of New Jersey. The Federal Communications Commission’s Enforcement Bureau provided assistance in TIGTA’s investigation. Additionally, the Executive Office for U.S. Attorneys (EOUSA), Legal and Victim Programs, provided significant support to the prosecution.
Senior Trial Attorney Michael Sheckels and Trial Attorney Mona Sahaf of the Criminal Division’s Human Rights and Special Prosecutions Section (HRSP), Trial Attorney Amanda S. Wick of the Criminal Division’s Money Laundering and Asset Recovery Section, and Assistant U.S. Attorneys Mark McIntyre and Craig Feazel of the Southern District of Texas prosecuted the case. Kaitlin Gonzalez of HRSP was the paralegal for this case.
A Department of Justice website has been established to provide information about the case to already identified and potential victims, and the public. Anyone who believes they may be a victim of fraud or identity theft in relation to this investigation or other telefraud scam phone calls may contact the FTC via this website.
Anyone who wants additional information about telefraud scams generally, or preventing identity theft or fraudulent use of their identity information, may obtain helpful information on the IRS tax scams website, the FTC phone scam website and the FTC identity theft website.
“Porch Pirate” Heads to Federal Prison for Stealing PackagesRead the Press Release
CORPUS CHRISTI, Texas – A 38-year-old Corpus Christi man has been ordered to federal prison following his conviction of possessing stolen mail, announced U.S. Attorney Ryan K. Patrick along with Postal Inspector in Charge Adrian Gonzalez of the U.S. Postal Inspection Service (USPIS). Christopher Escobedo pleaded guilty March 29, 2018.
Today, U.S. Circuit Judge Gregg Costa, sitting by designation, handed Escobedo a 36-month sentence to be immediately followed by three years of supervised release. In handing down the sentence, the court noted that the four counts of conviction represented only those mail theft victims with camera surveillance on their porches and that Escobedo undoubtedly had numerous additional victims.
“As a result of investigative efforts, the sentence handed down in this case will send a clear message to mail thieves that they will be vigorously pursued and brought to justice. I commend the hard work and countless hours put forth by the USPIS and Corpus Christi Police Department (CCPD) which resulted in the arrest and prosecution of this individual,” said Gonzalez. “An important part of the USPIS mission is to ensure public trust in the mail and to defend the nation’s mail system from illicit financial gain.”
At the time of his plea, Escobedo admitted to stealing packages that the U.S. Postal Service (USPS) had left on the front porches of Corpus Christi residents between Dec. 31, 2017, and Jan. 8, 2018. Authorities identified Escobedo or his vehicle in video surveillance at a number of locations where packages were stolen. On one occasion, an observant neighbor confronted Escobedo as he attempted to take a package. The neighbor was able to supply the authorities with Escobedo’s description and a license plate number of the vehicle he was using. Postal inspectors used this information to track down Escobedo and link him to a number of other package thefts in the area.
Escobedo 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 USPIS conducted the investigation with the assistance of CCPD. Assistant U.S. Attorney Robert D. Thorpe Jr. is prosecuting the case.
Mexican National Headed to Federal Prison for Possessing MethRead the Press Release
LAREDO, Texas – A 31-year-old resident of Montemorelos, Nuevo Leon, Mexico, has been ordered to prison following his conviction of conspiracy with intent to distribute methamphetamine, announced U.S. Attorney Ryan K. Patrick. Rolando Garcia-Fuentes pleaded guilty March 2, 2018.
Today, U.S. District Judge Diana Saldaña ordered Garcia-Fuentes to serve 87 months in federal prison. Not a U.S. citizen, he is expected to face deportation proceedings following completion of his sentence.
On Dec. 9, 2017, law enforcement conducted a traffic stop of a northbound white Ford Freestar van Garcia-Fuentes was driving on IH-35 in La Salle County. At that time, he gave an implausible story regarding his travel.
A search of the vehicle revealed tampering and tool marks on the van’s stereo compartment and dashboard. Garcia-Fuentes agreed to return to the Border Patrol checkpoint where a canine gave a positive alert for the presence of narcotics and/or concealed humans. Authorities removed the stereo compartment and discovered signs of tampering with the vehicle’s air conditioning unit. They discovered a total of 16 bundles that tested positive for methamphetamine and had a net weight of nearly eight kilograms.
Garcia-Fuentes admitted he was getting paid to transport narcotics to the Dallas area and acknowledged he had done so on a previous occasion and was paid approximately $8,000.
Border Patrol and the Drug Enforcement Administration with the assistance of the Texas Department of Public Safety. Assistant U.S. Attorney Michael Bukiewicz prosecuted the case.
Local Two-Time Felon Receives Lengthy Sentence for Robbery at GunpointRead the Press Release
CORPUS CHRISTI, Texas - A 37-year-old Corpus Christi man has been ordered to federal prison for robbing a local convenience store at gunpoint and other various firearms offenses, announced U.S. Attorney Ryan K. Patrick. Steven Moore pleaded guilty March 1, 2018, admitting to multiple firearms charges committed over a six-month period between summer 2016 and January 2017.
Today, visiting U.S. Circuit Judge Gregg Costa sentenced Moore to 144 months in federal prison.
Local police encountered Moore in August 2016 after he had picked up a friend who was caught stealing ammunition from a local sporting goods store. When police searched Moore’s vehicle, they found a .22 caliber rifle outfitted with an homemade silencer and a 9 mm semi-automatic pistol he had stolen from a licensed dealer two weeks prior.
Moore was arrested and charged by state authorities, but released on bond.
Several months later, while still on bond for the previous incident, Moore was identified as a suspect in a robbery. On Jan. 2, 2017, local police responded to a robbery at a local convenience store. The clerk indicated the robber had pointed a gun at him and took money from the register and several packs of cigarettes. Footage from the store surveillance cameras appeared to show the weapon as a possible 9mm semi-automatic pistol.
On Jan. 17, 2017, 15 days after the robbery, local police arrested Moore in a drug store parking lot where he was found sleeping in a car with the gun used during the robbery in the front pocket of his sweatshirt.
In all, Moore pleaded guilty to possessing three firearms, a silencer and more than 130 rounds of ammunition.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation with the assistance of the Corpus Christi Police Department. Assistant U.S. Attorney Brittany Jensen prosecuted the case.
Assistant School Band Director Ordered to Prison for Distributing Child PornographyRead the Press Release
CORPUS CHRISTI, Texas - A 29-year-old Corpus Christi man has been sentenced to federal prison following his conviction of distribution of child pornography, announced U.S. Attorney Ryan K. Patrick. Parker J. Pendergraph pleaded guilty March 26, 2018.
Today, visiting U.S. Circuit Judge Gregg J. Costa sentenced Pendergraph to 60 months in federal prison. Pendergraph was further ordered to serve eight years on supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. Pendergraph will also be ordered to register as a sex offender.
In November 2017, an electronic chat room company notified the National Center for Missing and Exploited Children (NCMEC) that a known image of child pornography had been uploaded to an internet chat room. Authorities were able to link the specific IP address associated with a user known as “jack” to Parker J. Pendergraph.
Law enforcement determined Pendergraph was employed as an assistant band director for a local high school and middle school and obtained a search warrant for his residence. At that time, authorities seized several digital devices that led to the discovery of the known image of child pornography uploaded to the chat room. In addition, law enforcement also located more than 500 images and 390 images of child erotica.
The image uploaded to the chat room was located on one of Pendergraph’s digital devices. The image depicted a minor female approximately 14 years of age that is nude and sitting on a chair with her knees bent exposing her vagina to the camera. Pendergraph was shown the image, after which he admitted to uploading it.
Pendergraph also acknowledged going to chat sites and wanting to trade pictures of nude girls. He further stated he had seen images of child pornography on his computer for almost a year.
Immigration and Customs Enforcement’s Homeland Security Investigations and Corpus Christi Police Department’s – Internet Crimes Against Children Task Force conducted the investigation with the assistance of NCMEC.
Assistant U.S. Attorney Hugo R. Martinez is prosecuting the case, which was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Three-Time Drug Felon Receives Significant SentenceRead the Press Release
LAREDO, Texas – A previously convicted drug trafficker has been ordered to federal prison for conspiring to possess with intent to distribute heroin, announced U.S. Attorney Ryan Patrick. Ramiro Hernandez Jr., 40, of Laredo, pleaded guilty Feb. 5, 2018.
Today, U.S. District Judge Diana Saldaña sentenced him to 235 months imprisonment. On supervised release when he committed the crime, the court revoked that term and further ordered he serve an additional 18 months to be served consecutively.
In handing down the sentence, the court noted Hernandez was a career offender, having two prior federal drug trafficking convictions, another for being felon in possession of a firearm, and that this is his new reality when he keeps living this kind of life. Judge Diana Saldaña also mentioned that heroin addiction is a nightmare, and Hernandez was spreading that nightmare to the rest of our community.
The investigation began Oct. 13, 2017, when law enforcement learned Hernandez was holding undocumented aliens in his apartment. One had escaped and reported Hernandez had assaulted him and he was held against his will.
Authorities went to the apartment and discovered 148 grams of heroin, 89 pounds of marijuana and a .40 caliber handgun. Upon searching Hernandez, they also discovered an additional 50 grams of heroin hidden in his rectum.
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 Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation with the assistance of the Laredo Police Department. Assistant U.S. Attorney Christopher dos Santos prosecuted the case.
Jury Convicts Perez of Hate Crime in Burning of Victoria MosqueRead the Press Release
VICTORIA, Texas – A federal jury in Victoria has returned guilty verdicts on all counts as charged related to the 2017 burning of the local mosque.
U.S. Attorney Ryan Patrick made the announcement along with Acting Assistant Attorney General John Gore of the Department of Justice’s Civil Rights Division, Special Agent in Charge Fred Milanowski of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Special Agent in Charge Perrye K. Turner of the FBI and various state and local law enforcement agencies.
“This case represents the great coordination and cooperation of many federal, state and local law enforcement agencies,” said Patrick. “The Department of Justice is committed to protecting the religious liberty of all people and their ability to practice their faith without being the target of this kind of dangerous activity.”
“All people are entitled to live free from violence and fear, regardless of their religion or place of worship,” said Gore. “Perez’s actions were criminal, unlawful and dangerous. This Justice Department is committed to holding hate crimes perpetrators accountable under the law.”
The jury found Marq Vincent Perez, 26, of Victoria, was responsible for a hate crime in the burning of the Victoria Islamic Center 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.
“Houses of worship are scared places in America,” said Milanowski. “We are pleased in the outcome of this investigation, and ATF will continue to aggressively investigate all House of worship fires.”
“Hate crimes are not only an attack on a specific victim, they threaten the cornerstone of diversity that America was built upon,” said Turner. “Perpetrators of hate crimes, like Perez, aim to chip away at our nation’s foundations by instilling fear into entire communities with violence.”
In his opening statement, Assistant U.S. Attorney (AUSA) Sharad S. Khandelwal outlined the case against Perez, his hatred for Muslims and what transpired on several occasions in January 2018, leading up to the fire. “This is a simple, straightforward case of hate,” he said.
The jury heard from a total of 19 government witnesses, to include law enforcement officers, experts and others who testified about communications with Perez, one of whom detailed how Perez called Muslims “towelheads.” An FBI agent took the stand and described hate-filled messages found on Perez’s Facebook account.
Testimony in court detailed how Perez had planned the event and talked about how he had done “recon” of the mosque in the days leading up to the fire. A witness who was with Perez on the night of the fire described how excited Perez was upon seeing the mosque in flames, explaining that he was “jumping up and down like a little kid.”
Additional evidence also revealed that items taken during two burglaries at the mosque were found at his home as was an improvised bomb similar to what was used in an attempted car-bombing approximately two weeks prior to the fire.
The jury also heard from an arson expert who concluded the fire was the result of an “intentional application of an open flame.”
The defense attempted to shift the blame to a juvenile cooperator and tried to challenge the validity of the evidence and expert testimony. He also tried to establish an alibi. The jury was not convinced of any of the claims and found him guilty on all counts as charged following the five-day trial and approximately three hours of deliberation.
Perez faces up to 20 years in federal prison for the hate crime and up to 10 years for possessing an unregistered destructive device. For use of a fire to commit a felony, the penalty is a consecutive and mandatory minimum of 10 years in prison. All of the counts also carry a potential $250,000 fine. Sentencing has been set for Oct. 2, 2018.
He has been and will remain in custody pending that hearing.
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.
AUSAs Khandelwal and Kate Suh are prosecuting the case along with Trial Attorney Saeed Mody of the Department of Justice’s Civil Rights Division.
Former Venezuelan Official Pleads Guilty to Money Laundering Charge in Connection with Bribery SchemeRead the Press Release
A dual U.S.-Venezuelan citizen pleaded guilty today for his role in a scheme to bribe officials of Venezuela’s state-owned and state-controlled energy company, Petroleos de Venezuela S.A. (PDVSA), and for his role in an international money laundering scheme involving the bribes paid by the owners of U.S.-based companies to Venezuelan government officials to corruptly secure energy contracts and payment priority on outstanding invoices.
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 (ICE) Homeland Security Investigations’ (HSI) Houston Field Office made the announcement.
Luis Carlos De Leon-Perez (De Leon), 42, a citizen of the United States and Venezuela previously residing in Spain, pleaded guilty today in federal court in Houston to one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA) and one count of conspiracy to commit money laundering. U.S. District Judge Kenneth M. Hoyt of the Southern District of Texas accepted De Leon’s plea. Sentencing is scheduled for Sept. 24.
De Leon was arrested in Spain in October 2017 and subsequently extradited to the United States after a federal grand jury in the Southern District of Texas returned a 20-count indictment against him and Nervis Gerardo Villalobos Cardenas (Villalobos), 51; Cesar David Rincon Godoy (Cesar Rincon), 51; Alejandro Isturiz Chiesa (Isturiz), 33; and Rafael Ernesto Reiter Munoz (Reiter), 39.
According to admissions made in connection with De Leon’s plea, between 2011 and 2013, he conspired with Villalobos, Cesar Rincon, Isturiz and others, all of whom were then officials of PDVSA and its subsidiaries or former officials of other Venezuelan government agencies or instrumentalities, to solicit PDVSA vendors for bribes and kickbacks in exchange for providing assistance to those vendors in connection with their PDVSA business. Specifically, De Leon admitted that he solicited and directed bribes from Roberto Enrique Rincon Fernandez (Roberto Rincon), 57, of The Woodlands, Texas, and Abraham Jose Shiera Bastidas (Shiera), 55, of Coral Gables, Florida, to PDVSA officials in order to assist Roberto Rincon’s and Shiera’s companies, including their U.S.-based companies, in receiving payment priority and receiving additional PDVSA contracts. De Leon further admitted that he then conspired with Roberto Rincon and Shiera to launder and conceal the proceeds of the bribery scheme through a series of financial transactions, including wire transfers to accounts in Switzerland held in the names of individuals or entities other than De Leon and his co-conspirators.
As part of his plea agreement, De Leon also admitted to soliciting bribes from other owners of energy companies based in the United States and elsewhere, and directing a portion of such bribes to PDVSA officials in order to assist those individuals and their companies in winning business with PDVSA and to obtain payment from PDVSA on outstanding invoices ahead of other PDVSA vendors.
Roberto Rincon and Shiera previously pleaded guilty in the Southern District of Texas to charges under the FCPA for their respective roles in the bribery scheme. Cesar Rincon previously pleaded guilty to one count of conspiracy to commit money laundering. They currently await sentencing.
The charges against Villalobos, Isturiz and Reiter remain pending. Each of the three remaining defendants is charged with one count of conspiracy to commit money laundering and with one or more counts of money laundering. Villalobos is also charged with one count of conspiracy to violate the FCPA. Villalobos and Reiter remain in Spain pending extradition and Isturiz remains at large.
The charges contained in the indictment are merely accusations, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
De Leon is the latest individual to plead guilty as part of a larger, ongoing investigation by the U.S. government into bribery at PDVSA. Including De Leon, Cesar Rincon, Roberto Rincon and Shiera, the Justice Department has announced the guilty pleas of a total of 12 individuals in connection with the investigation.
HSI in Houston is conducting the ongoing investigation with assistance from HSI in Boston and Madrid, as well as from Internal Revenue Service Criminal Investigation. Trial Attorneys Jeremy R. Sanders and Sarah E. Edwards of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys John P. Pearson and Robert S. Johnson of the Southern District of Texas are prosecuting the case. Assistant U.S. Attorney Kristine Rollinson of the Southern District of Texas is handling the forfeiture aspects of the case.
The Criminal Division’s Office of International Affairs, the Swiss Federal Office of Justice and the Spanish Guardia Civil have provided substantial 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.
The Woodlands Woman Sent to Prison for Defrauding EmployerRead the Press Release
HOUSTON – A 53-year-old resident of The Woodlands has been sentenced following her conviction of wire fraud, announced U.S. Attorney Ryan K. Patrick. Kavita Nehendra Duvvuru pleaded guilty Oct. 11, 2017.
Today, U.S. District Judge Sim Lake handed Duvvuru a 24-month sentence. At the hearing, a representative of victim company Vinmar International Ltd. told the court the company was like a family and that Duvvuru’s crime a shock. In handing down the sentence, Judge Lake noted the crime deserved punishment by a prison sentence. She will also be required to serve a three-year-term of supervised release following completion of her sentence. She was further ordered to make restitution of $2,537,885.66. The court also entered a forfeiture order imposing a money judgment of $2.5 million.
Duvvuru was a former employee of Vinmar International Ltd. At the time of her plea, she admitted that while employed there, she made unauthorized charges and cash advances for personal expenses on credit cards which were only to be used for Vinmar business expenses. Duvvuru further admitted she altered the credit card statement and provided false information to conceal her fraud from the company.
Duvvuru began employment with the Houston petrochemical distribution and marketing company Vinmar in 2004. Vinmar paid the balances on several credit cards issued in the name of Vinmar’s president and another officer of Vinmar on a monthly basis. These credit cards included an American Express Plum card and two MasterCards and were used to charge Vinmar’s business expenses. Duvvuru had credit cards issued in her name on those accounts as well, but was only authorized to charge Vinmar business expenses.
Beginning in or about 2010, Duvvuru began making unauthorized charges for personal expenses on the American Express Plum credit card. Eventually, these unauthorized personal charges reached between $10,000 and $20,000 per month. She also obtained unauthorized cash advances from the MasterCard credit cards, which she used for personal expenses including payment of her property taxes and college tuition payments for her children.
In late 2016, Duvvuru made $22,359.29 in unauthorized personal charges on the American Express Plum card. She later accessed the online statement, downloaded a copy and used a software program to alter it to conceal her unauthorized personal charges. She then added a falsified charge for the same amount and attributed it to a Vinmar vendor. She also created false entries to account for the charge it to make it appear to be a legitimate Vinmar business expense. She then submitted the falsified entries to Vinmar’s accounting department.
Duvvuru 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.
Pay Phone Owner Sentenced for $2.4 Million ScamRead the Press Release
HOUSTON - A 61-year-old Friendswood man has been ordered to federal prison for mail and wire fraud and money laundering, announced U.S. Attorney Ryan K. Patrick. David Grudzinski pleaded guilty April 13, 2018.
Today, U.S. District Judge Sim Lake handed Grudzinski an 18-month term of imprisonement. In handing down the sentence, Judge Lake noted it was a sophisticated fraud but took into consideration Grudzinski’s lack of criminal history. Grudzinski will be required to serve three years of supervised release following completion of the prison term.
Grudzinski owned approximately 450 pay phones in the Houston area. At the time of his plea, Grudzinski admitted to running a scam to unlawfully obtain payments from the owners of toll-free numbers for calls to his pay phones.
Using specialized software, he caused his phones to robotically dial toll-free telephone numbers assigned to various federal and state government agencies as well as other private entities. As a result, Grudzinski fraudulently-obtained $.494 per such call from 2005 through July 10, 2015.
Because of his scheme, Grudzinski collected over $2.4 million in fraudulently-obtained payments during that timeframe.
Grudzinski 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 General Services Administration - Office of Inspector General, U.S. Postal Inspection Service, FBI and IRS - Criminal Investigation conducted the investigation. Assistant U.S. Attorney Melissa Annis is prosecuting the case.