Southern District of Texas
Press releases recorded for this federal judicial district.
Man Sentenced for Threatening Federal JudgeRead the Press Release
HOUSTON – A 45-year-old man has received additional prison time for threatening to kill a Texas federal judge, announced U.S. Attorney Ryan K. Patrick. Charles M. Gilmore Jr., a former resident of Missouri, pleaded guilty Feb. 20, 2018.
Today, Chief U.S. District Judge Lee H. Rosenthal handed Gilmore a 120-month sentence. The sentence will begin following completion of a seven-year-term he must serve from Missouri state court and another 120 months in Northern District of Texas federal court. Following those sentences and the new 10-year-term received today, Gilmore will also serve three years of supervised release.
As part of his plea, Gilmore admitted that on or about Jan. 25, 2017, he knowingly mailed a communication threatening to kill a federal judge in the Northern District of Texas. He mailed the letter to the Federal Detention Center in Houston with a return address implicating Gilmore who was incarcerated at the time.
In the letter, Gilmore said he was going to kill the federal judge, promising to “make the streets run red in Texas.” He also included a white powdery substance, but it tested negative for any bioterrorism agents.
During an interview with law enforcement, Gilmore admitted to mailing the letter and reiterated his intent to kill the federal judge.
He has been and will remain in custody.
The FBI conducted the investigation. Assistant U.S. Attorney Ted Imperato is prosecuting the case.
Jury Convicts Carrizo Springs Man of Smuggling AliensRead the Press Release
CORPUS CHRISTI, Texas - A federal jury has convicted a 52-year-old resident of Carrizo Springs for attempting to smuggle 30 aliens through the U.S. Border Patrol Checkpoint located near Falfurrias, announced U.S. Attorney Ryan K. Patrick. The jury deliberated for 20 minutes before convicting David Rodriguez Sr. following a two-day trial of conspiring to and transporting illegal aliens.
The illegal aliens were hidden behind a load of produce in the trailer portion of the 18-wheeler Rodriguez was driving. On Dec. 5, 2017, during a routine immigration inspection, a service canine conducted a sniff and alerted to the exterior of the trailer. U.S. Border Patrol agents unlocked the trailer and located 30 aliens hiding behind pallets of limes. The agents noted that the temperature inside the refrigerated trailer was 54 degrees Celsius.
U.S. District Judge Nelva Gonzales Ramos presided over the trial and set sentencing for Oct. 10, 2018. At that time, Rodriguez Sr. faces a maximum of 10 years in federal prison. Upon completion of any prison term imposed, he also faces a three year term of supervised release.
Rodriguez was permitted to remain on bond pending that hearing.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of Border Patrol. Assistant U.S. Attorney Jeffrey S. Miller prosecuted the case.
Trademark Property Company Resolves American with Disabilities Act ComplaintRead the Press Release
HOUSTON - Trademark Property Company has collaborated with the U.S. Attorney’s Office to resolve a complaint against the property known as “Rice Village” regarding violations of Title III of the American with Disabilities Act of 1990, announced U.S. Attorney Ryan K. Patrick.
The complaint stated that the Rice Village sidewalk did not leave sufficient passage for individuals in a wheelchair to access the parking garage from certain restaurants and stores.
According to the 2010 ADA Standards, “At least one accessible route shall be provided within the site from accessible parking spaces and accessible passenger loading zones; public streets and sidewalks; and public transportation stops to the accessible building or facility entrance they serve.”
The United States initiated this investigation after receiving a complaint about the inaccessibility of routes leading from the parking garage to adjacent shops and restaurants at Rice Village. Trademark, who manages the Rice Village property, was prompt and very cooperative in addressing the issues presented to it in a letter of factual findings and relevant statutory and regulatory requirements. Trademark immediately started remedying the stated accessibility issues and had completed their barrier removal within a month’s time.
Assistant U.S. Attorney Elizabeth Karpati and Paralegal Specialist Ray Babauta handled the matter.
Huntsville Man Sentenced for Explosives and FirearmsRead the Press Release
HOUSTON - A previously convicted felon has been ordered to federal prison for unlawfully possessing three explosive devices and firearms, announced U.S. Attorney Ryan Patrick along with Special Agent in Charge Fred Milanowski of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Carl Eugene Fleming, 55, pleaded guilty March 16, 2018.
Today, U.S. District Judge Malinda Harmon sentenced him to 71 months imprisonment to be immediately followed by three years of supervised release. In arriving at the sentence, the Judge considered the need for punishment, deterrence and respect for the law. Judge Harmon further noted Fleming’s long history of possessing firearms while being a prohibited person.
“As the agency charged with investigating illegally obtained explosives, ATF works closely with the U.S. Attorney’s Office to prosecute offenders who violate these laws,” said Milanowski.
The investigation began after law enforcement believed Fleming had improvised explosive devices in the residence he was renting.
The ATF conducted a search at the location, at which time they discovered two explosive devices - one constructed with a grey metal pipe and a fuse, while the other was a 20mm ammunition can with explosive powder and shrapnel and a fuse primed for detonation. Also found were several firearms and ammunition.
He was taken into custody, at which time he also had in his possession a loaded .45 caliber pistol and three magazines of ammunition.
A third explosive device was later located hidden in Fleming’s room. This improvised explosive device consisted of PVC pipe with explosive powder, shrapnel and a fuse attached to an arrow.
As a previously convicted felon, Fleming is prohibited by federal law of possessing any firearm, ammunition or destructive devices.
He had been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
ATF conducted the investigation. Assistant U.S. Attorney Steven Schammel is prosecuting the case.
Illegal Alien Ordered to Prison for Multiple ChargesRead the Press Release
HOUSTON – A 58-year-old an illegal alien from Mexico has been sentenced following his conviction of harboring illegal aliens, using a firearm during a crime of violence, illegal re-entry and being an alien in possession of a firearm, announced U.S. Attorney Ryan K. Patrick. J. Matias Picazo-Lucas pleaded guilty March 7, 2018.
Today, U.S. District Judge Keith Ellison handed Picazo-Lucas a total 96-month sentence. Not a U.S. citizen, he is expected to face deportation proceedings following the sentence
On Aug. 3, 2017, an individual contacted Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) to report that a person had been smuggled into the United States and was being held against his will in Houston. That person advised that the unknown smugglers were demanding money in return for the release of the alien.
An undercover agent called the smuggler and arranged to meet him at a grocery store on Bellaire Boulevard to conduct a buyout of the relative. Law enforcement was on the scene when Picazo-Lucas arrived with two aliens who were being held. The agent and Picazo-Lucas discussed the payment, after which time authorities took Picazo-Lucas into custody. At the time of his arrest, he was found to be carrying a loaded .38 caliber pistol.
The two aliens were here illegally from Guatemala and indicated Picazo-Lucas and another individual, subsequently identified as Omar Picazo-Torres, had transported them to Houston in a tractor-trailer. Picazo-Lucas and Picazo-Torres held the hostages at gunpoint in order to intimidate them and prevent their escape.
The conspirators made phone calls to the person who had reported the kidnapping and other friends and family members of the hostages demanding payment for the release of the hostages.
Picazo-Lucas will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Mexican National Omar Picazo-Lucas, 20, remains a fugitive and a warrant has been issued for his arrest. Anyone with information about his whereabouts is asked to contact HSI at 866-DHS-2-ICE.
HSI, Brazoria County Sheriff’s Office and the Houston Police Department conducted the investigation. Assistant U.S. Attorneys Douglas Davis and Kevin Lear are prosecuting the case.
Local Woman in Custody for Lasing Aircraft at McAllen AirportRead the Press Release
McALLEN, Texas – A 46-year-old McAllen resident has been taken into custody for allegedly aiming a laser pointer at an aircraft, announced U.S. Attorney Ryan K. Patrick.
Law enforcement took Ruth Ann Hopp into custody Friday. She made her initial appearance this morning, at which time she was ordered temporarily into custody pending a detention hearing set for today at 4:00 p.m.
The criminal complaint alleges Hopp is responsible for lasing numerous aircrafts that had attempted to land at McAllen International Airport.
The investigation began after numerous pilots had complained about similar incidents involving lasers.
Lasers have a dangerous effect on pilots when the beams of light strike an aircraft. The light can temporarily blind them. A laser, when aimed at an aircraft, can create a visual distraction or cause discomfort or even damage to a pilot’s eyes.
The criminal complaint alleges the instances in which Hopp is charged occurred during the landing portion of different flights, when the pilots need to be most alert. This represents a danger to not only the pilots, but the passengers of the planes as well as the people on the ground.
If convicted, Hopp faces up to five years in prison and a possible $250,000 maximum fine.
The FBI and Customs and Border Protection Air & Marine Branch conducted the investigation. Assistant U.S. Attorney K. Alejandra Andrade 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.McAllen Man Heads to Prison for Receiving Child Pornography VideosRead the Press Release
McALLEN, Texas – A 28-year old resident of McAllen has been ordered to federal prison following his conviction of one count of receipt of child pornography, announced U.S. Attorney Ryan K. Patrick. Jesus Salvador Lara-Perez pleaded guilty Dec. 5, 2016.
Today, U.S. District Judge Ricardo Hinojosa handed Lara-Perez a 66-month-sentence. Lara-Perez was further ordered to $750 in restitution to a known victim and will serve five 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.
Lara-Perez came to the attention of law enforcement following an investigation which began on Nov. 8, 2015, into persons using the internet to traffic in child pornography. A special agent with Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) was able to locate and identify a computer as offering to participate in the receipt of child pornography videos through the peer-to-peer network on the Internet. Through the investigation, it was determined the computer was located at a residence in McAllen.
On June 28, 2016, authorities executed a federal search warrant at that residence, during which time they seized a laptop computer. A forensic examination on the computer revealed 198 videos and 109 images of child pornography involving clearly young children engaged in sexually explicit conduct. These videos included children under the age of 12 involved in sadistic conduct, bondage and other depictions of violence. Some of the videos are of known victims as identified through the National Center for Missing and Exploited Children.
Lara-Perez admitted he downloaded and viewed child pornography from the Internet, thereby receiving the child pornography found on his laptop computer. He admitted he had been downloading child pornography for approximately three years.
Lara-Perez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
HSI conducted the investigation.
This case, prosecuted by Assistant U.S. Attorney Alex Benavides, 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."
Illegal Possession of a Firearm Sends Local Man to PrisonRead the Press Release
CORPUS CHRISTI, Texas - A previously convicted felon has been ordered to federal prison for illegally possessing a firearm, announced U.S. Attorney Ryan K. Patrick. Cruz Edwardo Gonzalez, 30, of Corpus Christi, pleaded guilty Feb. 1, 2018, to a single count of being a felon in possession of a firearm.
Today, U.S. District Judge Nelva Gonzales Ramos sentenced Gonzalez to 84 months imprisonment to be immediately followed by three years of supervised release.
In March 2017, authorities were attempting to serve an arrest warrant on Gonzalez for delivery of a controlled substance. The agents located and arrested him at his residence in Corpus Christi, at which time Gonzalez gave consent to search the location. Agents and officers soon discovered a loaded 9mm semi-automatic handgun with an obliterated serial number in his bedroom. Gonzalez, who had a previous felony conviction, is prohibited from possessing firearms and ammunition per federal law.
Gonzalez was arrested at the time of the offense and transferred into federal custody in December 2017 as part of a coordinated federal, state and local law enforcement effort known as Operation City Shield. The operation was designed to identify violent offenders, stop gun violence and protect the community.
Gonzalez has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be designated in the near future.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Corpus Christi Police Department conducted the investigation.
Assistant U.S. Attorney Lance Watt is prosecuting the case.
4-Time Offender Sent Back to Prison for Illegally Re-entering the USRead the Press Release
BROWNSVILLE, Texas – A 47-year old Mexican citizen has been ordered to prison for more than seven years following his conviction of illegal re-entry, announced U.S. Attorney Ryan K. Patrick. Jose Inez Martinez-Ramirez pleaded guilty March 14, 2018.
Today, U.S. District Judge Andrew Hanen ordered Martinez-Ramirez to serve 78 months for the conviction and further ordered his supervised release for a previous illegal re-entry conviction be revoked, resulting in a total 90-month-federal prison sentence. He again will be expected to face deportation proceedings following his release.
On Jan. 1, 2017, Martinez-Ramirez was in the Brownsville city jail on charges of sexual assault and assault on a family member impeding breath/circulation. At that time, he was found to be an alien and citizen of Mexico who had entered the United States illegally.
Further evidence revealed that he had been previously removed from the United States in 2005, 2008 and 2011.
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 – Homeland Security Investigations conducted the investigation. Assistant U. S. Attorney Oscar Ponce is prosecuting the case.
Vitamin Shop Owner Guilty of Selling Misbranded Drugs and Controlled SubstanceRead the Press Release
CORPUS CHRISTI, Texas - A 35-year-old Corpus Christi woman has pleaded guilty to one count of possessing a controlled substance with the intent to distribute and one count of receiving a misbranded drug in interstate commerce, announced U.S. Attorney Ryan K. Patrick.
Vanesa Gonzales was one of the owners of X2Zero, a store selling dietary supplements online and through stores located in Corpus Christi.
In 1997, the Food and Drug Administration (FDA) approved a prescription drug containing sibutramine under the trade name “Meridia” for the management of obesity. In October 2010, the FDA requested Meridia’s marketer to withdraw the drug from the United States market due to the health risks associated with sibutramine, including an increased risk of heart attack, stroke and death. On Dec. 21, 2010, at the manufacturer’s request, FDA withdrew its approval of Meridia. Since its removal, no drug containing sibutramine has been approved for human use in the United States.
The FDA found a number of the products X2Zero sold as “herbal weight loss supplements” to contain misbranded or unapproved foreign drugs.
At today’s hearing before Senior U.S. District Judge John D. Rainey, Gonzales admitted she knowingly possessed and sold diet drugs containing sibutramine. She acknowledged she imported the drugs from China and sold them through both the X2Zero store in Corpus Christi and on the internet in violation of the federal Food, Drug and Cosmetic Act.
Sentencing has been set for Sep. 17, 2018, at 5:00 p.m. At that time, Gonzales faces up to six years in federal prison and fines of up to $350,000. She has been and will remain in custody pending that hearing.
The FDA-Office of Criminal Investigations conducted the investigation. Assistant U.S. Attorney Robert D. Thorpe Jr.is prosecuting the case.
Romanian Men Ordered to Prison for Roles in ATM Skimming CrewRead the Press Release
HOUSTON – Three Romanian men have been ordered to prison for their roles in the placement of card skimmers on ATMs and stealing money from bank accounts, announced U.S. Attorney Ryan K. Patrick. Cristian Viorel Ciobanu, 31, Bogdan Mirel Constantin, 34, both of Romania, pleaded guilty Oct. 27, 2017. A third defendant – Daniel Marius Muraretu, 40, also of Romania – entered his plea Jan. 26, 2018.
Ciobanu pleaded guilty to conspiracy to commit access device fraud and aggravated identity theft. Today, U.S. District Judge Ewing Werlein Jr. ordered him to serve 42 months for the fraud in addition to another two years for the identity theft which must be served consecutively for a total of 66 months in federal prison.
Constantin pleaded guilty to theft aggravated identity theft and received a mandatory two years in prison, while Muraretu received 37 months for his conviction of the conspiracy charge. They were all also ordered to pay restitution of $390,487.64
At the hearing, Ciobanu told the court he had made a mistake. In handing down Ciobanu’s sentence, Judge Werlein noted that he had committed one crime after another after another in Pennsylvania, Virginia, Texas and then California. “You did not just make a mistake. This was not just a matter of you bumping into someone,” Werlein said. “You claim you are a good man – but this is not the mark of a good man.”
Ciobanu, Muraretu and Constantin were part of a group that traveled to the United States and then to Pennsylvania, Virginia and Texas to steal money from victims’ bank accounts. Further, after fleeing arrest in 2016, Ciobanu was arrested in 2017, apparently committing the same crimes in California.
In each state, the co-conspirators used card skimmers to steal ATM card numbers as customers inserted their cards into the machines. They also used hidden cameras to record customers as they entered their PINs. Armed with this stolen data, they then made their own fake ATM cards. They then used those fake cards and stolen PINs to withdraw at least $390,495.84 from customer accounts. Constantin joined the group in Houston.
All have been and remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation. Assistant U.S. Attorney Michael Chu is prosecuting the case.
Jury Convicts Former Postal Worker in Fraudulent SchemeRead the Press Release
HOUSTON – A federal jury has convicted a 47-year-old Humble woman of making false statements and theft of public money, announced U.S. Attorney Ryan Patrick. They deliberated for approximately an hour following less than three days of trial convicting Lisa Yvette Coffman.
Coffman was a 29-year federal postal employee. She sustained a job-related injury in 2011, but submitted more than $46,000 in false travel reimbursement claims related to that injury.
The jury heard testimony from a Department of Labor employee who explained worker’s compensation regulations. The government also presented testimony from employees from six different medical providers who explained the actual number of visits Coffman attended, a number drastically lower than was she claimed in her travel reimbursement submissions.
A special agent with U.S. Postal Service – Office of Inspector General (USPS-OIG) told the jury how they discovered the fraud which totaled $46,000.
U.S. District Judge Melinda Harmon presided over the trial and set sentencing for Sept. 14, 2018. At that time, she faces up to five years in prison for the false statements and another 10 years for theft of public money. Both convictions also carry a possible fine of $250,000.
USPS-OIG conducted the investigation. Assistant U.S. Attorneys Jennie Basile and Charlie Escher are prosecuting the case.
Former Defense Contractor Sentenced for Unlawfully Retaining Classified InformationRead the Press Release
Weldon Marshall, 43, of Sherman, Texas, was sentenced today to 41 months in prison, to be followed by one year of supervised release, for unlawfully retaining national defense information. Marshall pleaded guilty on March 5. Assistant Attorney General for National Security John C. Demers and U.S. Attorney Ryan K. Patrick of the Southern District of Texas made the announcement, after sentencing by U.S. District Judge George Hanks. In handing down the sentence, the court noted how Marshall violated an important trust the military had placed in him. From the early 2000s, Marshall unlawfully retained classified items he obtained while serving in the U.S. Navy and while working for a military contractor. Marshall served in the U.S. Navy from approximately January 1999 to January 2004, during which time he had access to highly sensitive classified material, including documents describing U.S. nuclear command, control and communications. Those classified documents, including other highly sensitive documents classified at the Secret level, were downloaded onto a compact disc labeled “My Secret TACAMO Stuff.” He later unlawfully stored the compact disc in a house he owned in Liverpool, Texas. After he left the Navy, until his arrest in January 2017, Marshall worked for various companies that had contracts with the U.S. Department of Defense. While employed with these companies, Marshall provided information technology services on military bases in Afghanistan where he also had access to classified material. During his employment overseas, and particularly while he was located in Afghanistan, Marshall shipped hard drives to his Liverpool home. The hard drives contained documents and writings classified at the Secret level about flight and ground operations in Afghanistan. Marshall has held a Top Secret security clearance since approximately 2003 and a Secret security clearance since approximately 2002. Previously released on bond, Marshall was taken into custody following the sentencing today where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. The Army’s 902d Military Intelligence Group and the FBI conducted the investigation. Assistant U.S. Attorney (AUSA) Alamdar Hamdani and former AUSA Andrew Leuchtmann of the Southern District of Texas prosecuted the case, along with Trial Attorney Matthew Walczewski of the National Security Division’s Counterintelligence and Export Control Section.
Former Defense Contractor Sentenced for Unlawfully Retaining Classified InformationRead the Press Release
HOUSTON – A 43-year-old man residing in Sherman has been ordered to federal prison following his conviction of unlawfully retaining national defense information, announced U.S. Attorney Ryan K. Patrick and Assistant Attorney General for National Security John C. Demers.
Weldon Marshall pleaded guilty March 5, 2018.
Today, U.S. District Judge George Hanks handed Marshall a 41-month sentence to be immediately followed by a year of supervised release. In handing down the sentence, the court noted how Marshall violated an important trust the military had placed in him.
From the early 2000s, Marshall unlawfully retained classified items while he served in the U.S. Navy and while working for a military contractor.
Marshall served in the U.S. Navy from approximately January 1999 to January 2004, during which time he had access to highly sensitive classified material, including documents describing U.S. nuclear command, control and communications. Those classified documents, including other highly sensitive documents classified at the secret level, were downloaded onto a compact disc labeled “My Secret TACAMO Stuff.” He later unlawfully stored the compact disc in a house he owned in Liverpool.
After he left the Navy, until his arrest in January 2017, Marshall worked for various companies that had contracts with the U.S. Department of Defense. While employed with these companies, Marshall provided information technology services on military bases in Afghanistan where he also had access to classified material. During his employment overseas, and particularly while he was located in Afghanistan, Marshall shipped hard drives to his Liverpool, Texas, home. The hard drives contained documents and writings classified at the secret level about flight and ground operations in Afghanistan.
Marshall has held a top secret security clearance since approximately 2003 and a secret security clearance since approximately 2002.
Previously released on bond, Marshall was taken into custody following the sentencing today where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Army’s 902d Military Intelligence Group and the FBI conducted the investigation. Assistant U.S. Attorneys (AUSA) Alamdar Hamdani and former AUSA Andrew Leuchtmann prosecuted the case along with Trial Attorney Matthew Walczewski of the National Security Division’s Counterintelligence and Export Control Section.
VA Employee and Former Vendor Charged with Fraud in Alleged Bogus Invoice SchemeRead the Press Release
HOUSTON – Two Houston women have been taken into custody on charges they committed fraud against the Veterans Administration (VA) by generating purchase orders for fictitious goods and services, announced U.S. Attorney Ryan K. Patrick.
Authorities arrested Eduora McDaniel aka Eudora McDaniel, 75, today, and she is expected to make her initial appearance before U.S. Magistrate Judge Nancy Johnson at 1:00 p.m. Co-defendant Angela Hunter aka Angelia Hunter, 53, is expected to appear in federal court Thursday at 2:00 p.m.
The 11-count indictment, returned June 7, 2018, alleges McDaniel was a prosthetics representative at the VA, while Hunter co-owned Divine Iron Works - a company that was an approved VA prosthetics vendor. They allegedly entered into an agreement to split VA payments for goods and services Hunter’s company never provided.
While Divine Iron Works was an approved vendor to provide prosthetic goods and services for the VA, the company was effectively defunct from January 2011 to December 2014 and provided no actual goods or services, according to the charges. The indictment alleges that as a VA prosthetics representative, McDaniel had the authority to obtain prosthetic goods and services if a Veterans Administration physician found it medically necessary, which she was authorized to pay using a government-issued VISA credit card. McDaniel allegedly created bogus purchase orders for Hunter’s company, which Hunter used to obtain payment on McDaniel’s government credit cards. McDaniel and Hunter split the payments according to the charges.
Each is charged with conspiracy to commit wire fraud and face up to five years in prison, upon conviction. McDaniel is also charged with 10 counts of wire fraud and one count of theft of government property. Each count of wire fraud carries a possible sentence of 20 years in prison, while theft of government property could result in a maximum of 10 years imprisonment. All the charges also carry a possible fine of $250,000.
VA - Office of Inspector General conducted the investigation. Assistant U.S. Attorney Belinda Beek is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Local Man Sentenced for Multiple Child Exploitation ChargesRead the Press Release
HOUSTON – A 24-year-old man from Houston has been ordered to federal prison for receipt and possession of child pornography, announced U.S. Attorney Ryan Patrick. Lucio Banda pleaded guilty March 21, 2018.
Today, U.S. District Judge Kenneth Hoyt sentenced Banda to 120 months in prison. At the hearing, Banda tried to mitigate his responsibility by claiming he did not distribute child pornography on the internet through his use of a peer-to-peer program. The court heard arguments and reviewed evidence regarding how the file-sharing program worked with respect to the sharing and distribution of files Banda made available. In handing down the sentence, the court noted Banda was responsible for the distribution of child pornography. He was further ordered to pay $18,136.40 in restitution to the known victims included in his collection and will serve 10 years on supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. He will also be ordered to register as a sex offender.
Banda first came to the attention of law enforcement after they found multiple images of child pornography associated with his online account.
Authorities conducted a search at his residence, at which time they seized Samsung Galaxy Note 3 cellular phone and a San Disk Micro SD Ultra flash drive and a San Disk Ultra Plush flash memory card. Forensic analysis ultimately uncovered 2,191 images and 251 videos contained child pornography which included a substantial number of files with minor females under the age of five. Some of the images are known victims identified through the National Center for Missing and Exploited Children.
He admitted the child pornography was his as well as the online account he used to obtain child pornography and acknowledged using peer-to-peer software to search for, download and obtain child pornography. He also admitted to viewing child pornography for at least five years and that he had been doing so for at least two to three years.
Banda 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 Julie N. Searle 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."
Former Harris County Deputy Sentenced on Federal Child Pornography ChargesRead the Press Release
HOUSTON – A 31-year-old former law enforcement official has been ordered to federal prison for more than 27 years following his convictions of production and possession of child pornography, announced U.S. Attorney Ryan K. Patrick. Andrew Craig Sustaita, of Spring, pleaded guilty as charged March 15, 2018. He was previously a Harris County deputy sheriff at the time of the offense, but is no longer employed there.
Today, U.S. District Judge Sim Lake sentenced Sustaita to 240 and 87 months for the production and possession convictions, respectively. The sentences will run consecutively for a total 327-month term of imprisonment. Additional information was also presented today, including a victim impact statement presented by victim’s mother in the production count. She detailed how Sustaita’s acts have victimized her daughter/family/friends and that what has happened to them encompasses the true meaning of the term evil. In handing down the sentence, the court noted that this was one of the most disturbing cases over which he had presided. Sustaita will serve the rest of his life on supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. He will also be ordered to register as a sex offender.
There were 70 known series of child pornography identified on Sustaita’s devices. The court granted the government 90 days to determine if any of those victims are seeking restitution.
At the time of his plea, Sustaita admitted he posted child erotica images to a known child pornography website and had commented on other similar images on that same site. The investigation led to Sustaita whose online presence included a pay-to-play bestiality website. Further information presented to the court included discussions of the amount and types of images authorities have discovered on two devices attributable to Sustaita. Other images contain Sustaita’s genitalia placed on or near the identified young female victim’s head while she appears to be sleeping and others that include Sustaita attempting to expose that child’s genitalia.
Further investigation led to the discovery of the identified victim’s images on a computer in Milwaukee, Wisconsin. It was learned that Sustaita had distributed the images via the internet.
A U.S. magistrate judge had previously ordered Sustaita into custody after finding him to be a danger to the community and a risk of flight. He has remained in custody since that time and will continue to do so pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Harris County Sheriff’s Office and Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation.
Assistant U.S. Attorney Sherri Zack 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."
Recruiter Charged with Receiving Illegal Kickbacks from Local PharmacyRead the Press Release
HOUSTON – A 45-year-old Houston resident has been charged with conspiring to violate the federal anti-kickback statute and receiving at least $320,000 in illegal kickback payments from a local Houston pharmacy, announced U.S. Attorney Ryan K. Patrick.
Dontrey Lamon Eason turned himself in to law enforcement agents yesterday. He is expected to make his initial appearance before U.S. Magistrate Judge Nancy K. Johnson at 2:00 p.m. today.
The criminal information, filed today, alleges Eason and another individual entered into an agreement with Piney Point Pharmacy to receive $5,000 along with 40% of the payments the pharmacy received from the Federal Employees Compensation Act health care benefits program (FECA). Eason allegedly solicited a physician in Corpus Christi to send prescriptions to the pharmacy. Eason also had access to patient and pharmacy records to check the status of referrals, according to the complaint.
Eason allegedly received $320,608 from Piney Point Pharmacy who billed the FECA program $2,082,996 for referred prescriptions.
Conspiracy to pay kickbacks carries a possible sentence of five years as well as a possible $250,000 maximum fine.
Piney Point Pharmacy was charged in January 2018 with numerous violations of federal law, including conspiracy, health care fraud, wire fraud and money laundering. Trial is set for Oct. 15, 2018.
This case was the result of a joint investigation with the U.S. Postal Service – Office of Inspector General (OIG), Department of Labor - OIG, Department of Veterans Affairs – OIG and Department of Homeland Security – OIG. Assistant U.S. Attorney Julie Redlinger 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.CEO Gets More Than 19 Years for $18 Million Health Care Fraud SchemeRead the Press Release
HOUSTON – The CEO of Team Work Ready (TWR) has received a significant federal sentence for conspiracy, health care fraud, wire fraud and money laundering, announced U.S. Attorney Ryan K. Patrick along with Special Agent in Charge Christopher Cave of the U.S. Postal Service - Office of Inspector General (USPS-OIG), Special Agent in Charge Steven Grell of the U.S. Department of Labor (DOL) – OIG, Assistant Special Agent in Charge Ramsey Covington of IRS-Criminal Investigation (CI), Special Agent in Charge James Werner of the Department of Veterans Affairs (VA) – OIG and Special Agent in Charge David J. Green of the Department of Homeland Security (DHS) – OIG.
A federal jury convicted Jeffrey Eugene Rose Sr., 56, along with his wife - chief financial officer (CFO) Pamela Annette Rose, 56 - and the clinic’s vice president of operations Frankie Lee Sanders, 56, following 14 hours of deliberation on Oct. 17, 2016.
Today, U.S. District Judge Ewing Werlein Jr., who presided over the trial, sentenced Rose to 233 months in federal prison and ordered him to pay $14,537548.54 in restitution to the DOL, Office of Worker’s Compensation Program (OWCP) which administered the Federal Employees Compensation Act health care benefit program known as FECA. In arriving at the sentence, Judge Werlein considered the seriousness of the offense and the $18,354,971 in fraudulent claims submitted from Rose’s 10 TWR clinics located in Texas, Louisiana, Georgia, Memphis and Alabama, including clinics in Houston, San Antonio, and McAllen. Rose will also be required to serve three years supervised release upon completion of the prison term.
“The sentence imposed today serves as a clear deterrent to those engaging in fraud against federal benefit programs,” said Cave. “USPS-OIG, along with our law enforcement partners, will continue to aggressively pursue these investigations and exhaust all efforts in uncovering these fraud schemes.”
Pamela Rose and Sanders were previously sentenced July 21, 2017, to 120 and 300 months, respectively.
During the trial, the jury heard testimony from 38 witnesses including former patients of TWR clinics, former employees of TWR clinics, various experts and special agents from USPS-OIG and IRS-CI. According to testimony, TWR submitted millions in false and fraudulent claims for physical therapy services.
“Jeffrey Rose orchestrated a fraudulent scheme to submit more than $18 million in claims for services never provided to injured federal workers to DOL-OWCP using the health care clinics he owned in multiple states,” said Grell. “We will continue to work with our law enforcement partners to protect the integrity of department programs and safeguard taxpayer money.”
“Our system of health care is founded on the trust of the public in its health care professionals and the outstanding services they provide. The health care fraud and money laundering activities committed by Jeffrey Rose and his co-conspirators harms all Americans, as we all have to pay our fair share for government services and protections that we enjoy,” said Covington. “IRS-CI agents along with our law enforcement partners remain committed to ending healthcare fraud conspiracies and seeking justice for those involved in these crimes.”
Patients testified at trial that they did not receive the one-on-one physical therapy services for which DOL-OWCP paid under FECA. Rather, they stated they exercised independently on treadmills, bicycles, elliptical machines and with the Nintendo Wii game as well as other pieces of exercise equipment. One patient described an electronic massage chair in the San Antonio clinic, while another patient testified that unlicensed staff told him to do exercises on both of his arms, although he only injured his left elbow and to use the electronic massage chair and the treadmill for his injury. Similarly, a patient from Houston testified that she was asked to do some exercises that had nothing to do with her carpal tunnel wrist injury, specifically walking on a treadmill.
Testimony from former TWR employees revealed that the Houston clinic had as many as 30 – 60 patients a day and that employees did not know what the patients were doing in the main treatment area because they were busy in the back doing massages, electrical stimulation treatments and ultrasound treatments. Patients at the New Orleans clinic were instructed to go back to the therapy room to begin doing exercises by themselves. Employees testified that they did not perform all the one-on-one services documented on patient treatment notes and admitted they frequently completed the patient treatment notes at the end of the day by following a “cheat sheet” and asking each other and the patients what activities had been done. Various individuals described the treatment as “like a gym.”
Undercover federal agents posed as patients at two of the TWR clinics. The jury watched portions of covertly made recordings that supported the employee and patient testimony about clinic activities. The jury also heard several recordings a TWR employee made demonstrating how the defendants tried to coerce her into ordering medically unnecessary treatment so the clinics could profit.
As explained during the trial by DOL-OWCP’s chief fiscal officer, FECA does not pay for professional services performed by unlicensed aides. Under FECA rules, a chiropractor can only be paid when they treat spinal subluxation or when they personally perform physical therapy under the direction of, and as prescribed by, a medical doctor. They also cannot direct unlicensed individuals to perform skilled physical therapy services. Specifically, in relation to this case, TWR falsely and fraudulently submitted claims for skilled one-on-one physical therapy services provided by a licensed chiropractor when, in reality, the services were not provided as described.
Rose and his wife were also convicted of money laundering after another TWR employee testified about the pair moving $700,000 out of TWR accounts to hide it from the federal government in July 2013, while federal agents executed search warrants at multiple TWR locations.
Rose has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
USPS - OIG, DOL - OIG, IRS - CI, Department of Veterans Affairs - OIG, and Department of Homeland Security – OIG conducted the investigation. Assistant U.S. Attorneys (AUSA) Julie Redlinger and Daniel Rodriguez prosecuted the case. AUSA Kristine Rollinson handled the forfeiture matters.
Woman Sentenced to Prison for Bringing Methamphetamine into U.S.Read the Press Release
BROWNSVILLE, Texas – A 20-year-old U.S. citizen who was living in Matamoros, Mexico, has been ordered to federal prison following her conviction for possession with intent to distribute 2.96 kilograms of methamphetamine, announced U.S. Attorney Ryan K. Patrick.
Neydie Yuribia Garcia-Perez pleaded guilty in March 2017. Today, U.S. District Judge Andrew S. Hanen ordered her to serve 130 months in federal prison to be immediately followed by four years of supervised release.
On Nov. 11, 2016, Garcia-Perez arrived at the Gateway Port of Entry located in Brownsville driving a Ford Expedition. She declared herself to be a U.S. citizen named Neydie Yuribia Garcia-Perez and possessed a Mexican-issued driver’s license, a copy of a U.S. birth certificate and a Social Security card bearing her name. During inspection of her vehicle, authorities found 2.96 kilograms (6.5 pounds) of methamphetamine concealed in a compartment beneath the glove box.
Later, she gave a statement saying her name was actually Ana Josefina Perez and that she used the false identity of Garcia-Perez for several years when given the documents with that name. She claimed that an unknown individual picked up her vehicle shortly before noon and had the Expedition until about 9 p.m. She said she was to receive between $500 and $1,000 for crossing her vehicle into Brownsville. Garcia-Perez further admitted she was aware of a compartment in the vehicle, knew there might be narcotics inside, that she planned to drive to Houston and that she was to smuggle bulk currency in the vehicle compartment from Houston to Mexico.
She was arrested and charged under the name of “Ana Josefina Perez.”
Following her indictment, she claimed her true name was Garcia-Perez as she had initially told agents, admitting that she had given the name of her sister to customs officials in an effort to avoid prosecution.
Cruz-Garcia has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Oscar Ponce prosecuted the case.
Indiana Man Charged in SDTX with Laundering Proceeds of $7 Million International Investment Scam Through Used Car DealershipRead the Press Release
HOUSTON - An Indiana man was arrested yesterday in Indianapolis in connection with allegations he laundered the proceeds of an international advance-fee scheme through a used-car dealership he owned and operated. The scam allegedly involved false promises of investment funding by individuals impersonating U.S. bank officials to victims around the world, who were told they had to make certain payments before they could supposedly receive their funding. In some cases, the perpetrators allegedly met with the victims at local U.S. embassies or consulates and fabricated U.S. government documents to make the victims believe the U.S. government was sponsoring the investment agreements. Proceeds of the scheme were allegedly laundered through U.S. bank accounts and diverted back to the scheme’s perpetrators in Nigeria.
U.S. Attorney Ryan Patrick of the Southern District of Texas (SDTX), Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office and Inspector General Steve A. Linick of the U.S. Department of State made the announcement.
Tochukwu Nwosisi, 47, of Indianapolis, was charged in a superseding indictment filed in U.S. District Court for the Southern District of Texas with one count of conspiracy to launder monetary instruments and one count of concealment money laundering. The superseding indictment includes charges against five other individuals who were previously charged in an indictment filed in February 2018 in connection with the same scheme. Nwosisi made his initial appearance yesterday in the U.S. District Court in Indianapolis.
According to the superseding indictment, Nwosisi owned and operated a used car dealership in Indianapolis called Indyrides LLC. As part of his alleged involvement in the conspiracy, Nwosisi received international and domestic wire transfers from victims of the advance-fee scheme into his business bank accounts. The victims were under the impression that such payments were necessary to receive their investment funding. Nwosisi allegedly used the victims’ payments to, among other things, pay himself a portion of the funds and purchase vehicles that he then shipped to the scheme’s perpetrators in Nigeria. As banks closed his accounts for suspicious activity, Nwosisi continued to open new bank accounts to receive payments from victims.
The FBI and Department of State - Office of Inspector General conducted the investigation. SDTX Assistant U.S. Attorney (AUSA) Suzanne Elmilady is prosecuting the case along with Trial Attorney William E. Johnston of the Criminal Division’s Fraud Section. SDTX AUSA Kristine Rollinson is handling the forfeiture matters.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Indiana Man Charged with Laundering Proceeds of $7 Million International Investment Scam Through Used Car DealershipRead the Press Release
WASHINGTON – An Indiana man was arrested yesterday in Indianapolis in connection with allegations that he laundered the proceeds of an international advance-fee scheme through a used-car dealership he owned and operated. The scam allegedly involved false promises of investment funding by individuals impersonating U.S. bank officials to victims around the world, who were told they had to make certain payments before they could supposedly receive their funding. In some cases, the perpetrators allegedly met with the victims at local U.S. embassies or consulates and fabricated U.S. government documents to make the victims believe the U.S. government was sponsoring the investment agreements. Proceeds of the scheme were allegedly laundered through U.S. bank accounts and diverted back to the scheme’s perpetrators in Nigeria.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Ryan Patrick of the Southern District of Texas, Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office and Inspector General Steve A. Linick of the U.S. Department of State made the announcement.
Tochukwu Nwosisi, 47, of Indianapolis, was charged in a superseding indictment filed in U.S. District Court for the Southern District of Texas with one count of conspiracy to launder monetary instruments and one count of concealment money laundering. The superseding indictment includes charges against five other individuals who were previously charged in an indictment filed in February 2018 in connection with the same scheme. Nwosisi made his initial appearance yesterday in the U.S. District Court in Indianapolis.
According to the superseding indictment, Nwosisi owned and operated a used car dealership in Indianapolis called Indyrides LLC. As part of his alleged involvement in the conspiracy, Nwosisi received international and domestic wire transfers from victims of the advance-fee scheme into his business bank accounts. The victims were under the impression that such payments were necessary to receive their investment funding. Nwosisi allegedly used the victims’ payments to, among other things, pay himself a portion of the funds and purchase vehicles that he then shipped to the scheme’s perpetrators in Nigeria. As banks closed his accounts for suspicious activity, Nwosisi continued to open new bank accounts to receive payments from victims.
The charges in the superseding indictment are merely allegations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the FBI and Department of State Office of Inspector General. The case is being prosecuted by Trial Attorney William E. Johnston of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Suzanne Elmilady of the Southern District of Texas. Forfeiture is being handled by Assistant U.S. Attorney Kristine Rollinson of the Southern District of Texas.
Brazilian Couple Convicted for International Kidnapping of GrandsonRead the Press Release
HOUSTON – A federal jury has convicted an international businessman and his wife of international parental kidnapping, announced U.S. Attorney Ryan K. Patrick and Special Agent in Charge Perrye K. Turner of the FBI. The jury deliberated for more than two days following a 10-day jury trial before convicting Carlos Otavio Guimaraes, 67, and Jemima Guimaraes, 66.
“International parental kidnapping is a terrible crime,” said Patrick. “This jury of 12 heard heart-wrenching evidence of a father who just wants to see his little boy. I applaud today’s verdict and want everyone to know that our office will not rest until the mother is back on U.S. soil to face her own kidnapping charges.”
The jury heard that the child’s grandparents helped illegally retain the child in Brazil away from his father in Houston. The mother and minor child traveled to Brazil to attend a family event in July 2013, but were supposed to return to Houston no later than July 20, 2013. The child was never returned to the United States.
“The FBI is committed to investigating those who remove or attempt to remove a child from the United States, or retain a child outside the United States, with the intent to obstruct another parent's custodial rights,” said Turner.
During trial, the jury heard how the child’s mother allegedly orchestrated a plan to travel to Brazil for her brother’s wedding via an agreed travel agreement as part of the pending divorce. While in Brazil, she went to a Brazilian state court and obtained custody of the minor. From that moment forward, the father of the child was limited in his ability to visit with his son. The visits he did have were supervised by a guard hired by the child’s mother. Currently, despite a Harris County divorce ruling in 2015 favorable to the father, his ability to maintain a relationship with his son has been incredibly difficult. The child no longer speaks English, and the father had to learn Portuguese to navigate the Brazilian legal system and communicate with his son.
The child’s father testified and told the jury that all he ever wanted was for his son to return to Houston so he could be a constant presence in his life.
Evidence was also presented which included the fact that the grandparents support their daughter by providing housing and employment. Additionally, when the father would visit Brazi, Jemima was present for most of the exchanges of the child. Video evidence showed both Carlos, Jemima, the hired guard and their Brazilian attorney at one of the exchanges.
The defense attempted to convince the jury that the Brazilian court rulings should be respected despite the fact they disregard the father’s position. The rulings found the United States was not the place to raise a child in the “egotistical profile of the American family.”
The defense provided an expert on the Hague Convention to testify, but that expert was unable to give even one example of a child that has been returned from Brazil when the abducting parent was alive and domiciled in Brazil. Further, the expert acknowledge the U.S. State Department has found Brazil to be non-compliant with the provisions of the Hague Convention on the Civil Aspects of International Child Abduction since 2006.
The defense claimed the mother was fleeing from domestic violence, but evidence failed to support that claim. The jury ultimately found Carlos and Jemima Guimaraes guilty of international parental kidnapping.
A sentencing date is expected to be set at later date. At that time, the couple faces up to three years in federal prison.
They were permitted to remain on bond pending that hearing.
The child’s mother - Marcelle Guimaraes, 40 - is also charged but remains a fugitive in Brazil. She is presumed innocent unless and until convicted through due process of law.
The FBI conducted the investigation. Assistant U.S. Attorneys Sherri L. Zack and Kimberly Ann Leo are prosecuting the case.
“We thank AUSAs Zack and Leo for their commitment to bringing justice and a successful conclusion to this unique case,” said Turner. “Prosecutors generally have no control over the custodial decisions affecting the child or whether foreign authorities will order the return of the child.”
If you are a parent or legal custodian who has been deprived of your child through abduction, please see the Department of Justice’s International Parental Kidnapping webpage for more information.
Woman Sent to Prison for Preparing False Income Tax ReturnRead the Press Release
HOUSTON – A local tax return preparer has been ordered to federal prison following her conviction of willfully aiding and assisting in the preparation of a false tax return for a client, announced U.S. Attorney Ryan K. Patrick along with Special Agent in Charge Rick Goss of IRS-Criminal Investigation. Crystal T. Kemp pleaded guilty Oct. 12, 2017.
Today, U.S. District Judge Sim Lake handed Kemp a 30-month sentence to be immediately followed by one year of supervised release. In handing down the sentence, the court noted Kemp’s conduct spanned four years and included the preparation of multiple false tax returns for the same clients.
“Today’s sentencing of Kemp puts an end to the activities of someone who made a living off of defrauding the public. This should send a message to other unscrupulous tax return preparers,” said Goss. “IRS-CI Special Agents and the U.S. Attorney’s office will continue to work vigorously to stop dishonest tax return preparers and their criminal behavior.”
In the plea agreement filed in the record of the case, Kemp admitted she prepared income tax returns for clients of her business in Houston named CQ Tax Preparation. Kemp willfully placed several false items on the tax returns, including false losses from sole proprietorships, false refundable American Opportunity Credits, false earned income credits and false child tax credits.
According to the plea agreement, Kemp admitted she prepared 41 false income tax returns for clients with a combined tax loss to the United States of $429,131. Kemp also prepared a false 2015 income tax return for an undercover IRS agent posing as a taxpayer, claiming a false income tax refund of $5,546 when the tax return should have reflected a tax due and owing of $1,270.
Kemp further admitted in the plea agreement that she claimed a false income tax refund on her 2013 and 2014 personal income tax returns that resulted in a combined tax loss to the United States of an additional $96,608.
Previously released on bond, Kemp was taken into custody following the sentencing today where she will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
IRS-Criminal Investigation conducted the investigation. Assistant U.S. Attorney Justin R. Martin is prosecuting the case.
Nigerian Man Using False Identification Convicted in Scheme to Commit Disaster FraudRead the Press Release
HOUSTON ‐ A man using a false identification has entered a guilty plea in a scheme to obtain a fraudulent government loan for damage sustained from Hurricane Irma, announced U.S. Attorney Ryan K. Patrick.
Oluseyi Jeremiah Olagoke Adebayo aka Jeremiah Adebayo Oluyesi, 44, a Nigerian man who illegally resided in Houston, pleaded guilty to fraud in connection with a major disaster. He admitted that from October 2017 to February 2018, he used the identification of an Orlando, Florida, resident in an attempt to obtain a fraudulent disaster home loan from the Small Business Administration (SBA) in connection to Hurricane Irma.
The SBA provides long-term low-interest loans to businesses and non-profit organizations in the aftermath of a declared disaster. Loan proceeds are to be used solely for the repair or replacement of real estate, inventory, supplies, machinery and equipment damaged during a declared disaster. Hurricane Irma impacted the Gulf Coast region, including the state of Florida, and was declared a disaster in September 2017.
Adebayo admitted he aided and abetted others in submitting an application to the SBA in October 2017 for a $118,900 home disaster loan which contained several potential fraud indicators. Further, Adebayo admitted he attempted to collect on the loan for the Florida property.
Adebayo appeared at a U.S. Post Office in Houston on Feb. 7, 2018, to obtain the fraudulent loan disbursement check. At that time, he used a counterfeit passport with the identification of the Florida resident to obtain the check. At that time, he was also found in possession of a counterfeit U.S. visa.
U.S. District Judge Gray Miller accepted the plea and set sentencing for Aug. 16, 2018, at which time Adebayo faces up to 30 years in prison and a possible $250,000 maximum fine. He will remain in custody pending that hearing.
SBA-Office of Inspector General and U.S. Postal Inspection Service conducted the investigation. Assistant U.S. Attorney Michael Day is prosecuting the case.
Cardenas Jr. Convicted of Firearms Charge and Impersonating US MarshalRead the Press Release
BROWNSVILLE, Texas – The son of the former Gulf Cartel leader has admitted he illegally possessed a firearm and impersonated a U.S. Marshal, announced U.S. Attorney Ryan K. Patrick.
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 Osiel Cardenas Jr., 26. 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 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.
Cardenas, who has been in custody since his arrest, will remain in custody pending his sentencing hearing, set for Aug. 27, 2018, before U.S. District Judge Andrew S. Hanen. At that time, he faces up to 10 years for the felon in possession of a firearm as well as another three years for impersonating a U.S. Marshal. Both convictions also carry a possible $250,000 maximum fine.
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.
Undocumented Alien Gets 30 Years in Prison for Trafficking MethRead the Press Release
HOUSTON – A 52-year-old Mexican citizen who illegally resided in Houston was ordered to federal prison for 30 years for his conviction of trafficking a kilogram of methamphetamine, announced U.S. Attorney Ryan K. Patrick. Arturo Hernandez-Villegas pleaded guilty Aug. 15, 2016.
Today, Senior U.S. District Judge David Hittner sentenced Hernandez-Villegas to serve 360 months in federal prison. Not a U.S. citizen, he is expected to face deportation proceedings following his sentence.
At the time of his plea, Hernandez-Villegas admitted to playing a key role in attempting to deliver methamphetamine in the Houston area, including a delivery of approximately one kilogram of methamphetamine on June 12, 2014.
This delivery was part of an investigation that began in early 2014 which identified Hernandez-Villegas and his brother Lorenzo Hernandez-Villegas as leaders of a drug trafficking organization that primarily trafficked large quantities of methamphetamine and cocaine.
On June 6, 2014, a confidential source (CS) called Arturo Hernandez-Villegas, during which time Arturo Hernandez-Villegas agreed to sell a kilogram of methamphetamine for $10,500. Approximately a week later, they met at a restaurant to complete the transaction. Shortly after their arrival, Arturo Hernandez-Villegas called his brother who arrived with the methamphetamine. The CS provided the money to Lorenzo Hernandez-Villegas, who, in turn provided the methamphetamine.
Authorities took control of the drugs and sent it for further chemical analysis, which demonstrated it had a net weight of 943 grams and a purity of 98.4%. The drugs had been imported from Mexico.
The evidence in the case also revealed Arturo Hernandez-Villegas was involved in other drug trafficking trafficking transactions totaling approximately nine kilograms of methamphetamine and 10 kilograms of cocaine for which he was held accountable at the hearing today.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration, Houston Police Department and Harris County Sheriff’s Office conducted this Organized Crime Drug Enforcement Task Force investigation. Assistant U.S. Attorney Arthur R. Jones is prosecuting the case.
Two Houston Residents Sentenced in Identity Theft SchemeRead the Press Release
HOUSTON – Two Houston individuals have been ordered to federal prison following their convictions of conspiracy to commit access device fraud, announced U.S. Attorney Ryan K. Patrick along with Special Agent in Charge Steven Grell of the U.S. Department of Labor - Office of Inspector General (DOL-OIG) and Special Agent in Charge Rick Goss of IRS-Criminal Investigation (CI). Trenecia Moore, 34, and Michael Muniz, 28, pleaded guilty Oct. 24, 2017, and Jan. 8, 2018, respectively.
Today, U.S. District Judge Nancy F. Atlas sentenced Moore to 23 months in prison, while Muniz was sentenced to 12 months and one day. Moore and Muniz will also serve three years of supervised release and pay restitution, jointly and severely, in the amounts of $716,054 and $361,597, respectively.
The pair were indicted in June 2017. Moore filed false tax claims and unemployment insurance claims with identifying information of others. She then loaded the funds from those false claims onto debit cards and had them delivered to false addresses. Muniz assisted her in retrieving the cards and withdrawing the funds.
“Moore and Muniz defrauded the State of Texas Unemployment Insurance (UI) Trust Fund and the IRS by conspiring with others to steal the personally identifiable information of unwitting individuals in order to file fraudulent UI claims and federal tax returns,” said Grell. “We will continue to work with our federal and state law enforcement partners to safeguard the UI system from those who exploit these benefit programs.”
“The sentencing of Moore and Muniz brings justice and hopefully some closure for the victims of this stolen identity fraud scheme,” said Goss. “IRS-CI special agents are dedicated to stopping identity thieves like these and will continue to work diligently with our law enforcement partners to put an end to these schemes.”
Moore and Muniz were permitted to remain on bond and surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
DOL-OIG, IRS-CI and Texas Workforce Commission conducted the investigation with the assistance of the FBI. Former Assistant U.S. Attorney (AUSA) Andrew Leuchtmann and AUSA Carolyn Ferko prosecuted the case.
Local Man Convicted of Firearms Charge Related to Trafficking DrugsRead the Press Release
CORPUS CHRISTI, Texas – A 41-year-old Corpus Christi man has entered a guilty plea to possession of a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney Ryan K. Patrick.
On Oct. 20, 2017, law enforcement officers executed a federal narcotics search warrant at the home of Eduardo Ignacio Reyes in Corpus Christi. During the search, authorities seized a loaded 9mm handgun and a safe in his bedroom, which contained approximately 430 grams of cocaine, $2,000 and 9mm ammunition. The officers also discovered additional cocaine and a second loaded handgun within the residence.
U.S. District Judge Nelva Gonzalez Ramos accepted the plea today and set sentencing for Sept. 11, 2018. At that time, Reyes faces a minimum of five years and up to life in prison as well as a possible $250,000 maximum fine. He was permitted to remain on bond pending that hearing.
The South Texas Specialized Crimes and Narcotics Task Force and Immigration and Customs Enforcement's Homeland Security Investigations conducted the investigation with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Lance Watt is prosecuting the case.
IAH Baggage Handler Admits to Stealing Police Officers’ GunsRead the Press Release
HOUSTON – A 22-year-old Houston resident has pleaded guilty to stealing guns that belonged to three police officers who were traveling out of George Bush Intercontinental Airport (IAH), announced U.S. Attorney Ryan K. Patrick.
Mack Stewart, 22, entered a plea of guilty today before U.S. Magistrate Judge Christina Bryan.
On Oct. 4, 2017, three officers with the Bellevue, Washington, Police Department had flown from Houston to Seattle on United Airlines. Upon their arrival back in Washington, they noticed and reported their service weapons had been stolen.
Approximately one month later, authorities had pulled Stewart over for a traffic violation, at which time he was found in possession of one of the three stolen guns. Stewart later admitted he stole the guns while he was as a contract employee working at Bush Airport as a baggage handler.
Chief U.S. District Judge Lee H. Rosenthal will impose sentencing on Sept. 11, 2018. At that time, he faces up to 10 years in federal prison and a possible $250,000 maximum fine. He was permitted to remain on bond pending that hearing.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, FBI and the Houston Police Department are conducting the investigation. Assistant U.S. Attorney Sam Brown IV is prosecuting the case.
Former Construction Manager Pleads Guilty to Embezzling More than $3.4 MillionRead the Press Release
HOUSTON – A 42-year-old Houston man has admitted to wire fraud and conspiracy to commit money laundering to steal millions from Dallas company The Beck Group, announced U.S. Attorney Ryan K. Patrick.
Moses Said was a former construction manager for the Beck Group and was in charge of the Le Meridien Hotel Project in downtown Houston from 2016 to 2017. False invoices were submitted to the Beck Group for payment for construction products that were not provided and construction services that were not performed. In his role as construction manager, Said approved and submitted the false invoices for payment.
Once the monies were received, Said and his co-conspirators took steps to conceal and disguise the nature and source of the unlawful fraud proceeds.
Sentencing has been set for Sept. 17, 2018, before U.S. District Judge Vanessa Gilmore, at which time Said faces up to 20 years in prison.
He was permitted to remain on bond pending that hearing.
The FBI conducted the investigation. Assistant U.S. Attorney Vernon Lewis is prosecuting the case.
Corpus Christi Man Convicted of Distribution of Child PornographyRead the Press Release
CORPUS CHRISTI, Texas - A 26-year-old Corpus Christi man has admitted he illegally distributed child pornography, announced U.S. Attorney Ryan K. Patrick. Clinton Ray Stevens acknowledged he uploaded the images to an internet chat room called “UNderAg3.”
In January 2017, the National Center for Missing and Exploited Children (NCMEC) reported to law enforcement that known images of child pornography had been uploaded online. Authorities were able to link the specific IP address associated with the account to Stevens.
Law enforcement executed a search warrant at his residence and seized several digital devices. A search of those devices resulted in the discovery of more than four videos and 575 images of child pornography. At that time, Stevens admitted to uploading the images.
Sentencing has been set before U.S. District Judge Nelva Gonzalez Ramos on Sept. 11, 2018. At that time, Stevens faces not less than five and up to 20 years in federal prison and a possible $250,000 maximum fine. Upon completion of any prison term imposed, he also faces a maximum of life on supervised release during which time the court can impose a number of special conditions designed to protect children and prohibit the use of the internet.
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."
Brothers Guilty in Relation to Robberies of Bank and River Oaks Jewelry StoreRead the Press Release
HOUSTON – Two Houston brothers have pleaded guilty to aiding and abetting bank robbery, aiding and abetting the robbery of a jewelry store and related firearms charges, announced U.S. Attorney Ryan K. Patrick.
Kendric Miller, 28, and his brother, Kenneth Glenn, 24, pleaded guilty for their roles in the robbery of the IBC Bank located on Montrose and DeBoulle’s Jewelry Store in River Oaks as well as brandishing a firearm during the IBC robbery.
Miller and Glenn stormed into the IBC Bank on June 9, 2016, with hoods, masks and firearms. The brothers demanded money from the tellers and for them to open the vault, during with time they held the tellers at gunpoint. Miller and Glenn both had firearms and were able to leave the bank with the money and enter a waiting stolen truck. Xavier Cain, of Houston, was driving the vehicle and also previously pleaded guilty to bank robbery for his role as the lookout and getaway driver.
Miller and Glenn also pleaded guilty to their involvement in the Sept. 13, 2016, robbery of the DeBoulle’s Jewelry Store. On that day, four males armed with hammers and a firearm rushed into the store. They began smashing the glass cases, managing to take jewelry, cufflinks and watches before getting into a grey Nissan waiting for them on the street. Miller and Glenn were lookouts during the robbery.
U.S. District Judge Nancy H. Atlas accepted the pleas today and set sentencing for September 2018. At that time, they face up to 25 years for the bank robbery and 20 years for the robbery of DeBoulle’s. They also face a minimum of seven years for the firearms charge which must be served consecutively to any other prison term imposed.
They will remain in custody pending that hearing.
Law enforcement officers with FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives and the Houston Police Department conducted the investigations. Assistant U.S. Attorney Jill Stotts is prosecuting the cases.
This is an example of coordination between law enforcement who are part of the Houston Law Enforcement Violent Crime Initiative which combines personnel and resources from numerous federal, state and local agencies. The goal is to proactively fight and reduce violent crime across the Greater Houston area by targeting the region’s most violent offenders, augmenting investigative and prosecutorial efforts and enhancing training, public awareness and education.
Sugar Land Nurse Convicted in $3.5 Million Healthcare Fraud SchemeRead the Press Release
HOUSTON – A federal jury has convicted a 51-year old Sugar Land nurse of conspiracy to commit health care fraud, six counts of health care fraud and conspiracy to violate the anti-kickback statute, announced U.S. Attorney Ryan K. Patrick. The jury deliberated for less than six hours following a three-day trial before convicting John Dubor.
Dubor owned and operated Care Committers Health Services home health agency in Richmond. During the three-day trial, the jury heard evidence that Dubor paid marketers and group home owners for Medicare beneficiary information and subsequently billed Medicare and Medicaid for home health services for which the beneficiaries did not qualify and/or did not receive.
Additionally, Dubor personally falsified home health patient assessment forms documents to make the beneficiaries appear sicker on paper to receive higher reimbursement rates from Medicare. Dubor also instructed his employees to falsify home health certifications and forge physician signatures. The beneficiaries, who all resided in Nacogdoches, had no recollection of ever being treated by the Houston physicians listed on their home health orders. Medicare paid Dubor approximately $3.5 million.
Dubor’s co-conspirator, Lorine Whitaker, 59, of Nacaogdoches, had previously pleaded to conspiracy to violate the anti-kickback statute and is awaiting sentencing.
Dubor faces up 10 years in federal prison for each count of health care fraud and up to five years for conspiracy to violate the anti-kickback statute. Previously released on bond, Dubor was immediately taken into custody following the trial pending that hearing, set for Sept. 7, 2018, before U.S. District Judge Melinda Harmon.
The Department of Health and Human Services – Office of Inspector General’s Houston Field Office and the Texas Attorney General’s Medicaid Fraud Control Unit conducted the investigation. Special Assistant U.S. Attorney (AUSA) Justin Blan and AUSA Attorney Tina Ansari are prosecuting the case.
More Sentences Imposed in Robstown-Based Heroin ConspiracyRead the Press Release
CORPUS CHRISTI, Texas - Two more members of a massive heroin and money laundering conspiracy have been ordered to federal prison, announced U.S. Attorney Ryan K. Patrick. Louie Molina, 36, and Jesus Leal Jr., 34, both of Robstown, previously pleaded guilty to possession with intent to distribute more than one kilogram of heroin.
Today, U.S. District Judge Nelva Gonzales Ramos ordered each man to serve 20 years in federal prison to be followed by 10 years of supervised release. In handing down the sentences, the court noted the large amount of heroin distributed in this conspiracy and its devastating impact on the community and families.
The court learned during the pleas of guilty in this case that the defendants had been part of a significant, long-term heroin distribution ring operating in Robstown. Evidence also showed that on Oct. 4, 2017, authorities seized approximately a kilogram of heroin and almost $100,000 during the arrests related to this investigation. The overall scope of the conspiracy was estimated to be between at least 10-30 kilograms of heroin. The conspiracy operated, according to the evidence presented, between April 2016 and October 2017.
Three others were sentences last week. Enrique Gutierrez Jr., 31, of Sandia, received 13 years for the same heroin conspiracy as well as conspiracy to launder money. Sakhone Chanrattana, 35, of Jarrell, and Tim Molina, 34, of Robstown, had each pleaded guilty to possession with the intent to distribute heroin and received 97 and 18 months, respectively.
Sentencings for Jesus Gutierrez, 46, and Renee Gutierrez, 37, both of Corpus Christi, are set for Aug. 8, 2018.
The Drug Enforcement Administration and the Texas Department of Public Safety conducted the investigation. Assistant U.S. Attorney Jon Muschenheim is prosecuting the case.
Jury Convicts Former Police OfficerRead the Press Release
McALLEN, Texas – A federal jury sitting in McAllen has returned a guilty verdict against a former San Juan police officer for lying to federal agents, announced U.S. Attorney Ryan K. Patrick. The jury deliberated for approximately two days before convicting Salvador Hernandez, 30, of McAllen, following a five-day trial.
The jury 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 had logged only 37 bundles into evidence.
During the course of the investigation into the missing cocaine, law enforcement discovered the drugs had been stored in a vehicle belonging to Hernandez at the scene. Authorities interviewed him, 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 Richard Leon Castillo, 26, of Donna and Border Patrol agents. The jury saw video evidence and heard testimony that contradicted both statements.
Authorities 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 to the police department. Video evidence also confirmed that statement to be false.
Further, the jury saw video evidence of Hernandez allowing Castillo to touch the cocaine bundles. The footage also showed the two men discussing the fact that the bundles had not yet been counted. Specifically, as Castillo reached for one bundle, Hernandez is heard saying, “That one’s mine.”
The investigation revealed Castillo and Hernandez both failed to upload the video to police department records and failed to include any mention of touching the drugs within any department records.
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, he questioned being taken into custody, noting there were “bigger fish involved.”
At trial, the defense attempted to attack the credibility of witnesses, the validity of lab reports confirming the presence of cocaine and the suggestion that Hernandez and Castillo’s false statements were mistakes.
In December 2017, a federal jury convicted Castillo, of lying to federal agents.
Previously released on bond, both were permitted to remain on bond pending their sentencing, set for July 31, 2018. At that time, they face up to five years in prison.
Drug Enforcement Administration, the FBI, and the Department of Homeland Security – Office of Inspector General conducted the investigation. Assistant U.S. Attorneys Kristen Rees and Bobby Lopez are prosecuting the case.
Gang Member Sentenced for Multiple ChargesRead the Press Release
CORPUS CHRISTI, Texas - A 25-year-old Corpus Christi resident and member of the Texas Mexican Mafia has been sentenced to federal prison on charges of sex trafficking of a child as well as firearms and drug trafficking charges, announced U.S. Attorney Ryan K. Patrick. Marcus Anthony Tunchez was convicted on charges of sex trafficking of a child after a one-day trial that occurred Dec. 14, 2017. Tunchez had previously entered a guilty plea for the drug trafficking and narcotics charges prior to trial.
Today, U.S. District Judge Nelva Gonzales Ramos sentenced Tunchez to 151 months in prison on the charges of sex trafficking of a child. He also received 60 months for distributing methamphetamine as well as 60 months for being a felon in possession of a firearm. The sentences will run concurrently for a total 151-month-term of imprisonment. Tunchez was further ordered to serve 10 years on supervised release on each of his cases 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.
At the hearing, the court also heard testimony from a federal agent who reported that in August 2017, Tunchez attempted to rob someone. During the course of the robbery, Tunchez pointed a firearm at the victim’s head and fired a round that narrowly missed him. The victim was able flee and flagged down a police officer. The agent also testified that Tunchez used a social media application to advertise methamphetamine and used several local hotels to prostitute women and distribute methamphetamine.
During trial, U.S. District Judge heard about a joint investigation targeting gang members in the Corpus Christi area involved in narcotics trafficking and the sex trafficking of children. Tunchez was one of those identified as a member of the Mexican Mafia gang involved in both methamphetamine distribution and sex trafficking.
In May 2017, Tunchez began selling methamphetamine to an undercover officer and said he acted as a pimp to several young women. Tunchez explained he created and posted advertisements on a commercial sex website for the young women who then gave half the proceeds from their commercial sex acts to Tunchez. During the investigation, authorities also learned Tunchez was a convicted felon and discovered a social media posting of a video depicting Tunchez firing a pistol at a gun range in Corpus Christi.
In September 2017, Tunchez met with the undercover officer for the purpose of sex trafficking a child he believed was a 14-year-old girl. Tunchez expected to meet the child and transport her to a hotel where she would engage in a commercial sex act. Tunchez expected to receive 20 percent of the proceeds. He was taken into custody upon his arrival at the designated meeting place.
At trial, he attempted to convince the court that he intended to rob the undercover officer and not commit a sex trafficking crime. Judge Ramos did not believe his claims and found him guilty as charged.
Tunchez was arrested on federal charges in September 2017 and has been in custody since that time where he will remain pending his transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations and the Drug Enforcement Administration conducted the investigation with the assistance of the Corpus Christi Police Department - Internet Crimes Against Children Task Force.
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."
Federal Prisoner Convicted of Possessing a WeaponRead the Press Release
CORPUS CHISTI, Texas – A 20-year-old man from Corpus Christi has entered a guilty plea to possessing a dangerous weapon while in custody, announced U.S. Attorney Ryan K. Patrick.
On Jan. 9, 2018, Isaiah Martinez was awaiting sentencing at the Coastal Bend Detention Facility. On that date, correctional officers responded to a large fight inside the unit between two groups of inmates. During the incident, which was caught on video, Martinez removed an object from his waistband and attacked another inmate, who sustained several puncture wounds to the right side of his abdomen.
During a search of the inmates involved in the fight, officers recovered a homemade weapon or “shank” that appeared to be a metal spike approximately six inches in length from Martinez.
The following day, Senior U.S. District Judge Hayden Head sentenced Martinez to a total of 240 months in prison for possession with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime.
He again will appear before Judge Head for sentencing in this case on May 23, 2018. At that time, he faces another five-year-maximum term of imprisonment and a possible $250,000 fine.
Martinez has remained in federal custody since his initial arrest where he will remain pending that hearing.
The FBI and U.S. Marshals Service conducted the investigation. Assistant U.S. Attorney Lance Watt is prosecuting the case.
Local Man Admits to Distributing Child Pornography ChargesRead the Press Release
CORPUS CHRISTI, Texas - A 36-year-old Corpus Christi man has admitted he distributed child pornography on at least two occasions, announced U.S. Attorney Ryan K. Patrick.
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.
Senior U.S. District Judge John D. Rainey accepted the guilty plea today and set sentencing for Aug. 21, 2018. At that time, Medina faces a minimum of 5 years and up to 20 years in federal prison and a $250,000 maximum fine. Upon completion of any prison term imposed, Medina also faces a maximum of life on supervised release during which time the court can impose a number of special conditions designed to protect children and prohibit the use of the internet.
The FBI conducted the investigation with the assistance of the Corpus Christi Police Department - Internet Crimes Against Children Task Force.
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."
Importer of Crystal Methamphetamine Sentenced to Federal PrisonRead the Press Release
LAREDO, Texas – A 20-year-old man has been ordered to prison following his conviction of conspiring to import nearly four kilograms of crystal methamphetamine, announced U.S. Attorney Ryan K. Patrick. Mark Gurrola, of Dallas, pleaded guilty Jan. 9, 2018.
Today, U.S. District Judge Marina Garcia Marmolejo ordered him to serve a total of 78 months in prison. In handing down the sentence, the court noted the serious problems methamphetamine causes for users and the surrounding communities.
On Oct. 14, 2017, Gurrola applied for entry into the United States from Mexico as a passenger on a commercial bus. Agents observed him acting suspicious and searched the area around him. Authorities located four bundles containing crystal methamphetamine.
Gurrola has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be designated 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.
Houston Man Pleads Guilty to Smuggling 15 Aliens in Tractor TrailerRead the Press Release
CORPUS CHRISTI, Texas – A Houston man has entered a guilty plea to attempting to smuggle illegal aliens behind a load of produce, announced U.S. Attorney Ryan K. Patrick.
A federal grand jury returned the indictment against Joshua Abraham Andrus, 30, April 11, 2018. Today, he pleaded guilty as charged.
Andrus admitted he attempted to transport illegal aliens hidden behind a load of produce in the trailer portion of the 18-wheeler he was driving. On Mar. 22, 2017, Andrus drove a tractor-trailer 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 15 illegal aliens locked inside. The temperature inside the refrigerated trailer was 56 degrees.
He was permitted to remain on bond pending his sentencing hearing, which will be set at a later date. At that time, he faces up to five years in federal prison and a possible $250,000 fine.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of the U.S. Border Patrol. Assistant U.S. Attorney Jeffrey S. Miller is prosecuting the case.
Corpus Man Convicted of Downloading Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – A 46-year-old Corpus Christi resident has admitted he possessed child pornography, announced U.S. Attorney Ryan K. Patrick. Joe Perez admitted he downloaded sexually explicit content involving prepubescent minors
In February 2016, an undercover FBI agent from the Dallas Child Exploitation Task Force was conducting an online investigation into file sharing program looking for potential offenders sharing child pornography. The agent was eventually able to download multiple files of potential child pornography from a device later associated with Perez in Corpus Christi.
A search warrant was executed at his residence, at which time authorities advised Perez he had downloaded a video approximately two hours in length. One of the screenshots of the video was entitled “PEDOPHILIA Volume 1.” He admitted he was familiar with the video and that he believed that he had recently downloaded it, claiming he had accidentally downloaded the images of child pornography as well.
Law enforcement also seized various electronic devices during the search and a forensic analysis on those devices revealed that the his smartphone contained 15 images and nine videos of child pornography. The titles of some of those images and videos clearly indicate sexually-explicit content. One of the videos depicts a prepubescent minor engaged in sexually explicit conduct.
U.S. District Court Judge John D. Rainey accepted the guilty plea today and set sentencing for Aug. 21, 2018. At that time, Perez faces up to 20 years in federal prison and a possible $250,000 maximum fine. Upon completion of any prison term imposed, Perez also faces a maximum of life on supervised release during which time the court can impose a number of special conditions designed to protect children and prohibit the use of the internet.
The FBI Task Child Exploitation Task Force conducted the investigation with the assistance of the Corpus Christi Police Department—Internet Crimes Against Children Task Force.
Assistant U.S. Attorney Elsa Salinas 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."
Career Criminal Sentenced to Federal Prison for Firearms and DrugsRead the Press Release
CORPUS CHRISTI, Texas – A 24-year-old Robstown resident has been ordered to federal prison following his conviction for possessing a firearm during a drug trafficking offense and being a felon in possession of a firearm, announced U.S. Attorney Ryan K. Patrick. Isaiah Ryan Cantu pleaded guilty Feb. 14, 2018.
Today, U.S. District Judge Nelva Gonzalez Ramos sentenced Cantu to a total of 168 months imprisonment – 80 and 88 months, respectively, for the possessing a firearm during a drug trafficking crime and being a felon in possession. He was further ordered to serve five years of supervised release. Cantu had previously been convicted in state court for numerous felonies and was determined to be career offender by the court.
In October 2016, narcotics officers with the Robstown Police Department executed a search warrant at Cantu’s residence. During the search, the officers recovered a backpack that contained multiple small baggies of cocaine, 25 packages of synthetic cannabinoids, several packages of crack cocaine and a loaded .45 caliber semi-automatic handgun. As a previously convicted felon, Cantu is prohibited from possessing firearms and ammunition per federal law.
Cantu will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be designated in the near future.
The Robstown Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney Lance Watt is prosecuting the case.
Another Corpus Christi Man Sent to Prison on Child Pornography ChargeRead the Press Release
CORPUS CHRISTI, Texas - A 26-year-old Corpus Christi man has been sent to after authorities discovered he possessed more than 22,000 child pornography images, announced U.S. Attorney Ryan K. Patrick. Nicolas Hamm pleaded guilty to possession of child pornography on Feb. 13, 2018.
Today, U.S. District Judge Nelva Gonzales Ramos sentenced Hamm to 108 months in prison. He was further ordered to serve 10 years on supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. He will also be ordered to register as a sex offender. At the hearing, the court heard evidence that Hamm admitted to sexually assaulting a four-year-old family member when he was a juvenile.
In January 2017, authorities in Oklahoma were investigating an individual for sex trafficking charges. A search of that person’s cellular telephone revealed communications via a messenger application with another person with a user name of “jax1821.” The communications involved the sexual exploitation of children and user name of “jax1821” was later linked to Hamm
In December 2017, law enforcement executed a search warrant at Hamm’s residence and seized several digital devices which led to the discovery of more than 22,000 images and 3,600 videos of child pornography. Many of the videos portrayed prepubescent females involved in sexually explicit conduct with adult males.
Hamm has been and will remain in custody pending his sentencing hearing.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of the Corpus Christi Police Department’s Internet Crimes Against Children Task Force.
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."
Two Local Men Head to the Pen for Possessing Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – Two residents of Corpus Christi have been ordered to federal prison following their respective convictions of possession of child pornography, announced U.S. Attorney Ryan K. Patrick.
Rogelio Castaneda, 61, and Jose Ivan Davila, 54, pleaded guilty Jan. 23, 2018, in separate, but similar cases.
Today, Senior U.S. District Judge John D. Rainey sentenced Castaneda to 121 months in prison. Davila received a 70-month term of imprisonment. Both men were further ordered to serve 10 years of supervised release following completion of the prison terms, during which time they will have to comply with numerous requirements designed to restrict access to children and the internet. They will also be ordered to register as sex offenders.
In imposing Castaneda’s sentencing, Judge Rainey noted that it was “disturbing” that he was a repeat offender.
The investigation into Castaneda began after authorities discovered he had uploaded images of child pornography to his email accounts. Law enforcement learned Castaneda had a prior conviction related to child pornography and, as such, is required to register as a sex offender. However, he had failed to do so and was taken into custody in February 2017. Law enforcement seized several digital devices at the time of his arrest which led to the discovery of approximately 2,500 images and 700 videos of child pornography. At the time of his arrest, Castaneda admitted to having an interest in adolescent girls.
In Davila’s case, authorities were investing a file sharing program in February 2017, during which they identified a computer as a potential source of at least 41 files of known images of child pornography. That computer was later linked to Davila.
The next month, law enforcement executed a search warrant at his residence, at which time they seized various electronic devices. Forensic analysis on those devices revealed more than 296 images and approximately 260 videos child pornography. Two of those videos included images of young girls, approximately nine and 11 years of age, performing oral sex on an adult male.
Both men have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted both investigations with the assistance of the Corpus Christi Police Department - Internet Crimes Against Children Task Force.
Assistant U.S. Attorney Hugo R. Martinez prosecuted the cases, which were 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."
Attorney General and SDTX U.S. Attorney Recognize Law Enforcement Service and Sacrifice During National Police WeekRead the Press Release
HOUSTON - Attorney General Jeff Sessions and U.S. Attorney Ryan K. Patrick recognized the service and sacrifice of federal, state, local and tribal police officers on the occasion of National Police Week and Peace Officer Memorial Day and commented on the FBI's 2017 Law Enforcement Officers Killed and Assaulted report.
In October 1962, Congress passed and President Kennedy signed a joint resolution declaring May 15th as National Peace Officers Memorial Day to honor law enforcement officers killed or disabled in the line of duty. The resolution also created National Police Week as an annual tribute to law enforcement service and sacrifice.
“This day and week is set aside to remember the men and women who gave their lives protecting our communities,” said Patrick. “Ninety-three sworn officers and agents died in the line of duty last year. We mourn those taken from us. As a U.S. Attorney’s Office, we sometimes have the duty to bring justice for the families of these fallen heroes and we rededicate ourselves to carrying forward their legacy.”
“One officer death is too many,” said Sessions. “While we are inexpressibly grateful to have had a decrease in the number of officers killed in the line-of-duty last year, the number is still far too high. At the Department of Justice, we honor the memories of the fallen and we pray for their families. We are also following President Trump's Executive Orders to back the women and men in blue, to enhance law enforcement safety and to reduce violent crime in America. Those priorities will help keep every American safe, including those who risk their lives for us. As always, we have their backs and they have our thanks.”
Sessions also posted a video message on Police Week.
In 2017, the FBI reports seven Texas sworn officers were feloniously killed in the line of duty and four more in line of duty accidents. The Southern District had three line of duty deaths last year.
Clint Greenwood
Harris County Constable Pct. 3
End of Watch - 4/3/17On April 3 at 7 a.m., Clint Greenwood - an assistant chief deputy with the Harris County Constable’s Office in Baytown - was killed in an unprovoked attack in a courthouse parking lot as he arrived for work. The 57-year-old was a veteran of law enforcement with nearly 29 years of experience. He was gathering items from his vehicle when he was shot twice, once in the side of his head and once in his front upper torso/chest, above his body armor. Greenwood was able to remain standing, pointing out the direction the subject fled and warning other officers of the continued danger. He was transported to the trauma center at a local hospital where he succumbed to the wound to the side of his head.
Greenwood served as the commander of the Internal Affairs unit. A subsequent investigation revealed the subject was angry about a complaint he had filed that was not resolved to his satisfaction. The subject planned, stalked and waited for Greenwood to arrive at work in order to ambush him with his 9 mm semiautomatic handgun. Video footage from the courthouse parking lot showed the subject had been at the parking lot the day before, casing it to see where the chief parked his vehicle. The 64-year-old subject had a criminal history including a drug law violation and a violent crime. He committed suicide the following day.
Steve Albert Perez
Houston Police Department
End of Watch - 8/27/17Sergeant Steve Perez drowned after his patrol car was caught in floodwaters in the aftermath of Hurricane Harvey. Perez left home at approximately 4:00 a.m. in an attempt to report to his duty station in the downtown area, but was unable to reach it due to impassable roads caused by extreme flooding. He spent more than two hours trying to find a route, but when he could not, he dispatched that he would follow department protocol and report to the nearest station in Kingwood.
As he attempted to reach Kingwood, his patrol car was washed away in high water in the area of Hardy Tollway and Beltway 8. His body was recovered by members of Houston Police Department dive team and citizens Aug. 29, 2017.
Perez had served with the Houston Police Department for 34 years and was just days shy of his 61st birthday. He was a U.S Army veteran and is survived by his wife, two adult children and father-in-law.
Elias Martinez Jr.
METRO Police Department
End of Watch - 9/17/17Police Officer Elias "Sonny" Martinez succumbed to injuries sustained in a motorcycle crash while escorting permitted loads on Gulf Freeway in the area of FM 646 in League City.
He was passing the trucks in the escorted convoy when he laid his motorcycle down in an attempt to avoid a collision. He struck the rear of one of the trucks, causing him to suffer severe injuries. He was flown to Hermann Memorial Hospital where he remained until succumbing to his injuries a week later.
Officer Martinez had served with the Metropolitan Transit Authority Police Department for 25 years. He is survived by his wife and two children.
According to statistics collected by the FBI, 93 law enforcement officers were killed in line-of-duty incidents in 2017 – a 21 percent decrease from 2016 when 118 law enforcement officers were killed in line-of-duty incidents.
Additionally, in 2017 there were 46 law enforcement officers killed in line-of-duty incidents as a result of felonious acts – this is a 30 percent decrease from 2016, when 66 law enforcement officer were killed in line-of-duty incidents as a result of felonious acts.
For the full comprehensive data tables about these incidents and brief narratives describing the fatal attacks and selected assaults resulting in injury, please see the 2017 edition of Law Enforcement Officers Killed and Assaulted report, released last week.
During Police Week, which is observed from Sunday, May 13 to Saturday, May 19, 2018, our nation celebrates the contributions of police officers from around the country, recognizing their hard work, dedication, loyalty and commitment in keeping our communities safe.
The names of all 93 fallen officers nationwide were formally dedicated on the National Law Enforcement Officers Memorial in Washington, DC, during the 30th Annual Candlelight Vigil on the evening of May 13, 2018.
The Candlelight Vigil is one of many commemorative events taking place in the nation’s capital during National Police Week 2018.
For more information about other National Police Week events, please visit http://www.policeweek.org.
To access the FBI's 2017 Law Enforcement Officers Killed and Assaulted report, please visit www.fbi.gov.
South Texas Doctor Charged with $240 Million Health Care fraud and International Money Laundering SchemeRead the Press Release
McALLEN, Texas – A physician based in the McAllen area was charged in an indictment unsealed today for his role in a $240 million health care fraud and international money laundering scheme.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Ryan J. Patrick, Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Region and Special Agent in Charge Christopher Combs of the FBI’s San Antonio Field Office made the announcement.
Jorge Zamora-Quezada, 61, of Mission, was charged in a seven-count indictment filed in the Southern District of Texas. He was charged with one count of conspiracy to commit health care fraud, five counts of health care fraud and one count of conspiracy to commit money laundering. Zamora-Quezada had his initial court appearance earlier today. His detention hearing is set for tomorrow, May 15, at 2 p.m. before U.S. Magistrate Judge Peter E. Ormsby.
“Jorge Zamora-Quezada allegedly orchestrated a massive fraud scheme that jeopardized the health and wellbeing of innocent children, elderly and disabled victims,” said Cronan. “The allegations that Zamora-Quezada violated his oath to do no harm by administering unnecessary chemotherapy and other toxic medications to patients with serious diseases — including some of the most vulnerable victims imaginable — are almost beyond comprehension. The Criminal Division is committed to combatting health care fraud and protecting victims of reprehensible schemes like the one alleged in this case.”
“We take allegations of this nature very seriously,” said Patrick. “The prosecution of health care fraud is a high priority for the Southern District of Texas, especially when we suspect vulnerable patients have been allegedly exploited, misdiagnosed or possibly given potentially harmful medications as a means of committing that fraud.”
“Today’s indictment is the first step in holding Dr. Zamora-Quezada accountable for his allegedly egregious criminal conduct,” said Porter. “His patients trusted him and presumed his integrity; in return he allegedly engaged in a scheme of false diagnoses and bogus courses of treatment and doled out prescriptions for unnecessary and harmful medications, all for his personal financial gain and with no regard for patient well-being. HHS-OIG will always pursue criminals masquerading as legitimate physicians, weed them out and seek the harshest possible punishment, particularly when patient harm is a factor.”
“The FBI is dedicated to working with our task force partners to address health care fraud, which is a growing and serious crime that impacts every city and small town in the nation,” said Combs. “This investigation highlights an even greater concern presented by health care fraud than the significant financial losses—the physical and emotional harm suffered by the patients and their families. It is why we at the FBI, together with our task force partners, are dedicated to seeking justice for the victims of Dr. Zamora-Quezada’s alleged crimes.”
As set forth in the indictment, from 2000 through the filing of the indictment, Zamora-Quezada and his co-conspirators falsely diagnosed vulnerable patients -- including the young, elderly and disabled, from the Rio Grande Valley, San Antonio and elsewhere -- with various degenerative diseases, including rheumatoid arthritis. He and his co-conspirators then administered chemotherapy and other toxic medications to the patients based on that false diagnosis. In addition to falsely diagnosing patients, Zamora-Quezada and his co-conspirators allegedly conducted a battery of fraudulent, repetitive and excessive medical procedures on patients in order to increase revenue and fund Zamora-Quezada’s lavish and opulent lifestyle.
The indictment alleges Zamora-Quezada and his co-conspirators flew in Zamora-Quezada’s million-dollar private jet or drove in his Maserati, which were both emblazoned with his initials “ZQ” between his offices in the Rio Grande Valley and San Antonio in order to perpetuate the fraud. He and his co-conspirators transferred the proceeds derived from the conspiracy to purchase private jets, luxury vehicles, clothing from high-end retailers such as Louis Vuitton and exclusive real estate located throughout the United States and Mexico. He and his co-conspirators allegedly obstructed investigations by causing the creation of false and fictitious patient records and concealed thousands of medical records from Medicare by stashing them in an unsecured and dilapidated barn located in the Rio Grande Valley.
The indictment also alleges Zamora-Quezada and his co-conspirators laundered the proceeds of their fraud scheme by dissipating, transforming and concealing the source and location of the fraud proceeds by investing such proceeds in commercial and residential real estate in the United States and Mexico. Among other properties, he and his co-conspirators acquired two penthouses in Puerto Vallarta, Mexico; a condominium in Aspen, Colorado; a condominium in Punta Mita, Mexico; and multiple homes and commercial properties located throughout Texas. He then created the false appearance of legitimate wealth and income by renting the various commercial and residential properties that he acquired to individuals and entities. Zamora-Quezada and his co-conspirators allegedly laundered the proceeds through a casa de cambio, or money exchange house, to various accounts maintained by financial institutions in Mexico.
The indictment seeks the forfeiture of Zamora-Quezada’s personal jet, Maserati and multiple residential and commercial properties in the United States and Mexico.
The case is being investigated by the HHS-OIG’s McAllen Field Office, FBI’s San Antonio Division-McAllen Resident Agency’s Rio Grande Valley Health Care Fraud Task Force and the McAllen Complex Financial Crimes Task Force. These task forces are comprised of investigators from Texas Department of Insurance, police departments in McAllen and Pharr and the Texas Health and Human Service Commission. Trial Attorney Kevin Lowell of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Andrew Swartz of the Southern District of Texas are prosecuting the case.
The FBI is seeking to identify potential victims of Zamora-Quezada and his co-conspirators. If you were a patient of Zamora-Quezada from January 2000 through May 2018 and believe you may have been affected by his or his co-conspirators alleged crimes, please contact the FBI via the FBI victim’s hotline, 1-833-432-4873, Option 8, or if you have access to email you may email the taskforce at [email protected]. The FBI is legally mandated to identify victims of federal crimes that it investigates and provide these victims with information, assistance services and resources.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. The Medicare Fraud Strike Force operates in nine locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged more than 3,500 defendants who collectively have falsely billed the Medicare program for over $12.5 billion.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
South Texas Doctor Charged with $240 Million Health Care Fraud and International Money Laundering SchemeRead the Press Release
A physician based in the McAllen, Texas area was charged in an indictment unsealed today for his role in a $240 million health care fraud and international money laundering scheme.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Ryan J. Patrick of the Southern District of Texas, Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Region and Special Agent in Charge Christopher Combs of the FBI’s San Antonio Field Office made the announcement.
Jorge Zamora-Quezada, 61, of Mission, Texas, was charged in a seven-count indictment filed in the Southern District of Texas. He was charged with one count of conspiracy to commit health care fraud, five counts of health care fraud and one count of conspiracy to commit money laundering. Zamora-Quezada had his initial court appearance earlier today. His detention hearing is tomorrow, May 15, at 2 p.m. CDT before U.S. Magistrate Judge Peter E. Ormsby in the McAllen Division of the Southern District of Texas.
“Jorge Zamora-Quezada allegedly orchestrated a massive fraud scheme that jeopardized the health and wellbeing of innocent children, elderly, and disabled victims,” said Acting Assistant Attorney General Cronan. “The allegations that Zamora-Quezada violated his oath to do no harm by administering unnecessary chemotherapy and other toxic medications to patients with serious diseases — including some of the most vulnerable victims imaginable — are almost beyond comprehension. The Criminal Division is committed to combatting health care fraud and protecting victims of reprehensible schemes like the one alleged in this case.”
“We take allegations of this nature very seriously,” said U.S. Attorney Patrick. “The prosecution of health care fraud is a high priority for the Southern District of Texas, especially when we suspect vulnerable patients have been allegedly exploited, misdiagnosed or possibly given potentially harmful medications as a means of committing that fraud.”
“Today’s indictment is the first step in holding Dr. Zamora-Quezada accountable for his allegedly egregious criminal conduct,” said HHS-OIG Special Agent in Charge Porter. “His patients trusted him and presumed his integrity; in return he allegedly engaged in a scheme of false diagnoses and bogus courses of treatment, and doled out prescriptions for unnecessary and harmful medications, all for his personal financial gain and with no regard for patient well-being. HHS-OIG will always pursue criminals masquerading as legitimate physicians, weed them out, and seek the harshest possible punishment, particularly when patient harm is a factor.”
“The FBI is dedicated to working with our task force partners to address health care fraud, which is a growing and serious crime that impacts every city and small town in the nation,” said FBI Special Agent in Charge Combs. “This investigation highlights an even greater concern presented by health care fraud than the significant financial losses—the physical and emotional harm suffered by the patients and their families. It is why we at the FBI, together with our task force partners, are dedicated to seeking justice for the victims of Dr. Zamora-Quezada’s alleged crimes.”
As set forth in the indictment, from 2000 through the filing of the indictment, Zamora-Quezada and his co-conspirators falsely diagnosed vulnerable patients -- including the young, elderly and disabled, from the Rio Grande Valley, San Antonio, and elsewhere -- with various degenerative diseases, including rheumatoid arthritis. He and his co-conspirators then administered chemotherapy and other toxic medications to the patients based on that false diagnosis. In addition to falsely diagnosing patients, Zamora-Quezada and his co-conspirators allegedly conducted a battery of fraudulent, repetitive, and excessive medical procedures on patients in order to increase revenue and fund Zamora-Quezada’s lavish and opulent lifestyle.
The indictment alleges that Zamora-Quezada and his co-conspirators flew in Zamora-Quezada’s million-dollar private jet or drove in his Maserati, which were both emblazoned with his initials, “ZQ,” between his offices in the Rio Grande Valley and San Antonio in order to perpetuate the fraud. He and his co-conspirators transferred the proceeds derived from the conspiracy to purchase private jets, luxury vehicles, clothing from high-end retailers such as Louis Vuitton, and exclusive real estate located throughout the United States and Mexico. He and his co-conspirators allegedly obstructed investigations by causing the creation of false and fictitious patient records, and concealed thousands of medical records from Medicare by stashing them in an unsecured and dilapidated barn located in the Rio Grande Valley.
The indictment also alleges that Zamora-Quezada and his co-conspirators laundered the proceeds of their fraud scheme by dissipating, transforming and concealing the source and location of the fraud proceeds by investing such proceeds in commercial and residential real estate in the United States and Mexico. Among other properties, he and his co-conspirators acquired two penthouses in Puerto Vallarta, Mexico; a condominium in Aspen, Colorado; a condominium in Punta Mita, Mexico; and multiple homes and commercial properties located throughout Texas. He then created the false appearance of legitimate wealth and income by renting the various commercial and residential properties that he acquired to individuals and entities. Zamora-Quezada and his co-conspirators allegedly laundered the proceeds through a casa de cambio, or money exchange house, to various accounts maintained by financial institutions in Mexico.
The indictment seeks the forfeiture of Zamora-Quezada’s personal jet, Maserati and multiple residential and commercial properties in the United States and Mexico.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the HHS-OIG’s McAllen Field Office, the FBI’s San Antonio Division-McAllen Resident Agency’s Rio Grande Valley Health Care Fraud Task Force and the McAllen Complex Financial Crimes Task Force. These task forces are comprised of investigators from Texas Department of Insurance, McAllen Police Department, Pharr Police Department and the Texas Health and Human Service Commission. Trial Attorney Kevin Lowell of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Andrew Swartz of the Southern District of Texas are prosecuting the case.
The FBI is seeking to identify potential victims of Zamora-Quezada and his co-conspirators. If you were a patient of Zamora-Quezada from January 2000 through May 2018 and believe you may have been affected by his or his co-conspirators alleged crimes, please contact the FBI via the FBI victim’s hotline, 1-833-432-4873, Option 8, or if you have access to email you may email the taskforce at [email protected]. The FBI is legally mandated to identify victims of federal crimes that it investigates and provide these victims with information, assistance services, and resources.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. The Medicare Fraud Strike Force operates in nine locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,500 defendants who collectively have falsely billed the Medicare program for over $12.5 billion.
Médico del Sur de Texas Acusado de $240 Millones en Fraude al Sistema de Salud y Una Estratagema Internacional de Lavado de DineroRead the Press Release
WASHINGTON – A un médico radicado en el área de McAllen, Texas se le hizo una acusación formal, la cual se hizo pública el día de hoy, por su participación en un fraude de $240 millones al sistema de salud y una estratagema internacional de lavado de dinero.
El Fiscal General Adjunto John P. Cronan de la División Criminal del Departamento de Justicia, el Fiscal de los Estados Unidos Ryan J. Patrick del Distrito del Sur de Texas, el Agente Especial a Cargo C.J. Porter del Departamento de Salud y Servicios Humanos de los Estados Unidos de la Oficina del Inspector General (HHS-OIG) de la Región de Dallas y el Agente Especial a Cargo Christopher Combs de la Oficina Regional del FBI en San Antonio, emitieron el comunicado.
Jorge Zamora-Quezada, de 61 años, de Mission, Texas, fue acusado de siete cargos en el Distrito del Sur de Texas. Se le acusó de un cargo de asociación ilícita para cometer fraude al sistema de salud, cinco cargos de fraude al sistema de salud y un cargo de asociación ilícita para llevar a cabo el lavado de dinero.
“Jorge Zamora-Quezada presuntamente organizó una estratagema de fraude masivo que puso en peligro la salud y el bienestar de niños inocentes, personas de tercera edad y víctimas con discapacidad,” dijo el Fiscal General Adjunto Cronan. “Las alegaciones de que Zamora-Quezada violó su juramento de no hacer daño, al administrar quimioterapia innecesaria y otros medicamentos tóxicos, a pacientes con enfermedades graves — incluyendo a algunas de las víctimas más vulnerables que se pueda imaginar — son difíciles de entender. La División Criminal está comprometida a combatir el fraude al sistema de salud y de proteger a las víctimas de estratagemas censurables, como la que se alega en este caso.”
“Tomamos alegaciones de esta naturaleza muy en serio,” dijo el Fiscal estadounidense Patrick. “El enjuiciamiento contra el fraude al servicio de salud es una mayor prioridad para el Distrito del Sur de Texas, especialmente cuando sospechamos que pacientes vulnerables han sido presuntamente explotados, diagnosticados erróneamente o que quizá se les ha recetado medicamento que posiblemente sea dañino, como una manera de cometer este fraude.”
“La acusación formal del día de hoy es el primer paso en hacer al Dr. Zamora-Quezada responsable de su presunta conducta atroz y delictiva,” dijo HHS-OIG Agente Especial a Cargo Porter. “Sus pacientes confiaban en él y creían en su integridad; a cambio, presuntamente participó en una estratagema de diagnósticos y tratamientos falsos, y recetó medicamentos innecesarios y dañinos, a fin de obtener una ganancia financiera personal y sin tomar en cuenta el bienestar del paciente. HHS-OIG siempre perseguirá a delincuentes que se hagan pasar por médicos legítimos, los erradicará y les dará el castigo más severo posible, especialmente cuando el daño al paciente está de por medio.”
“El FBI está comprometido a trabajar con nuestros socios de los grupos operativos para combatir el fraude al sistema de salud,” dijo el Agente Especial a Cargo Combs. “Es un delito muy serio que va en aumento y que ha impactado cada ciudad y pueblo de la nación. Esta investigación destaca una inquietud aun mayor que es representante del fraude al sistema de salud, más allá de las pérdidas financieras significativas, es el daño físico y emocional que sufren los pacientes y sus familias. Por esta razón nosotros en el FBI, junto con nuestros socios de los grupos operativos, estamos comprometidos a ofrecerle justicia a las víctimas de los presuntos delitos del Dr. Zamora-Quezada.”
Como expone la acusación formal, desde el año 2000 hasta el día de la presentación de la acusación formal, Zamora-Quezada y sus cómplices diagnosticaron erróneamente a pacientes vulnerables – incluyendo a menores de edad, personas de tercera edad y personas con discapacidad, en el Valle del Río Grande, San Antonio, y en otros lugares – con varias enfermedades degenerativas, incluyendo la artritis reumatoide. Junto a sus cómplices, les administró quimioterapia y otros medicamentos tóxicos a pacientes basados en ese diagnóstico falso. Además de darles diagnósticos falsos a los pacientes, Zamora-Quezada y sus cómplices presuntamente llevaron a cabo una serie de procedimientos médicos fraudulentos, repetitivos y excesivos con los pacientes, a fin de aumentar los ingresos y financiar el estilo de vida lujosa y extravagante de Zamora-Quezada.
La acusación formal alega que Zamora-Quezada y sus cómplices volaban el avión privado de Zamora-Quezada de un millón de dólares o manejaban su Maserati, ambos grabados con sus iniciales, “ZQ”, entre sus oficinas en el Valle del Río Grande y San Antonio a fin de llevar a cabo el fraude. Él, junto a sus cómplices transfirieron el dinero recaudado de su asociación ilícita para comprar aviones privados, vehículos de lujo, ropa de tiendas de calidad superior como Louis Vuitton y propiedades exclusivas en varias partes de los Estados Unidos y México. Él, junto a sus cómplices presuntamente obstruyeron investigaciones al crear expedientes médicos falsos y ficticios, y le ocultaron miles de expedientes médicos a Medicare almacenándolos en establos inseguros y destartalados, ubicados en el Valle del Río Grande.
La acusación formal también alega que Zamora-Quezada y sus cómplices lavaron las ganancias de su estratagema, malgastando, transformando y ocultando la fuente y el lugar de sus ganancias al invertirlas en propiedades comerciales y residenciales en los Estados Unidos y México. Entre las propiedades, él junto a sus cómplices adquirieron dos penthouses en Puerto Vallarta, México; un condominio en Aspen, Colorado; un condominio en Punta Mita, México; y numerosas casas y propiedades comerciales ubicadas en diferentes partes de Texas. Después creó la falsa apariencia de riquezas e ingresos legítimos alquilándole a individuos y a entidades varias propiedades comerciales y residenciales que él había adquirido. Zamora-Quezada y sus cómplices presuntamente lavaron las ganancias en una casa de cambio, enviándolas a varias cuentas que mantenían en instituciones financieras en México.
La acusación formal solicita el decomiso del avión privado, el Maserati y las diferentes propiedades residenciales y comerciales de Zamora-Quezada en los Estados Unidos y México.
Una acusación formal es simplemente una alegación y todo acusado es inocente hasta que se compruebe su culpabilidad más allá de una duda razonable en un tribunal de justicia.
La Oficina Regional de McAllen de HHS-OIG, el Grupo Operativo contra el Fraude al Sistema de Salud de la Oficina Satélite de McAllen en el Valle del Río Grande de la División de San Antonio y el Grupo Operativo de McAllen contra Delitos Financieros están llevando a cabo la investigación de este caso. Estos grupos operativos están compuestos de investigadores del Departamento de Seguros de Texas, del Departamento de Policía de McAllen, del Departamento de Policía de Pharr y de la Comisión de Salud y Servicios Humanos de Texas.
El Abogado Procesalista Kevin Lowell de la Sección de Fraude de la División Criminal y el Fiscal Adjunto de los Estados Unidos Andrew Swartz del Distrito del Sur de Texas, están llevando este caso a juicio.
El FBI está buscando identificar posibles víctimas de Zamora-Quezada y sus cómplices. Si usted fue paciente de Zamora-Quezada entre enero 2000 y mayo 2018 y cree que pudo haber sido afectado por sus presuntos delitos y el de sus cómplices, por favor llame al FBI a su línea directa, 1-833-432-4873, Opción 8 o 9, o si tiene acceso a un correo electrónico, envié su correo al grupo operativo a [email protected]. Por ley el FBI tiene que identificar a las víctimas de los delitos federales que investiga y tiene que proporcionarles a dichas víctimas información, servicios de asistencia y recursos.
La Sección de Fraude lidera el Equipo de Prevención de Fraude al Medicare, el cual forma parte de una iniciativa conjunta entre el Departamento de Justicia y HHS, quienes enfocan sus esfuerzos para prevenir e impedir el fraude e implementan las leyes actuales en contra del fraude en todo el país. El Equipo de Prevención de Fraude al Medicare opera en nueve localidades en toda la nación. Desde su comienzo en marzo del 2007, el Equipo de Prevención de Fraude al Medicare ha presentado cargos a más de 3,500 acusados quienes han colectivamente defraudado al programa de Medicare por más de $12.5 mil millones.
Memorial Hermann Health System to Pay Nearly $2 Million to Resolve Improper Billing AllegationsRead the Press Release
HOUSTON – One of Houston’s largest health care providers has agreed to pay the United States $1,929,071.38 to resolve allegations that it improperly billed government healthcare programs, announced U.S. Attorney Ryan K. Patrick. The allegations include inappropriately billing for inpatient services provided to Medicare beneficiaries who were admitted for scheduled surgical procedures, but should have been treated in a less expensive outpatient or observation setting.
“Charging the government for higher cost inpatient services when patients only require lower cost outpatient services is a waste of taxpayer money and a violation of trust with the patient and with the government,” said Patrick. “This settlement should deter similar conduct in the future and help make health care more affordable.”
The government alleged that from Jan. 1, 2009, through Dec. 31, 2014, three Memorial Hermann Health System (MHHS) hospitals - the Texas Medical Center, Southwest and Memorial City - submitted claims to Medicare for scheduled surgical procedures in which the patient’s hospital stay lasted two days or less as inpatient services. The claims should have been submitted as outpatient services. This allegedly caused these three hospitals to receive more in reimbursements from the Medicare program than they were entitled to collect. These payments were mistakenly made and caused MHHS to be unjustly enriched, entitling the United States to compensation.
This settlement is a representation of the coordinated efforts of the U.S. Attorney’s Office, Department of Health and Human Services (DHHS) - Office of Inspector General and DHHS - Office of Audit Services to combat healthcare fraud and abuse.
The claims resolved by this agreement are allegations only, and there has been no determination of liability.
Assistant U.S. Attorney Andrew A. Bobb handled the matter on behalf of the Southern District of Texas.