Southern District of Texas
Press releases recorded for this federal judicial district.
Local Man Gets More Than Eight Years for Illegally Possessing FirearmRead the Press Release
CORPUS CHRISTI, Texas - A 27-year-old Corpus Christi man has been ordered to federal prison following his conviction of being a felon in possession of a firearm, announced U.S. Attorney Ryan K. Patrick. Cody Anthony Hernandez pleaded guilty Feb. 20, 2018.
Today, Senior U.S. District Judge John D. Rainey sentenced Hernandez to 102 months imprisonment to be followed by three years of supervised release.
In July 2017, authorities were conducting surveillance when they observed Hernandez, who had outstanding municipal warrants, arrive at the location. When officers approached Hernandez, they could see the grip of a handgun inside a backpack that was located in his vehicle. Hernandez was arrested for the warrants and officers recovered a .40 caliber Glock handgun loaded with a 30 round magazine. Hernandez had previously been convicted of a felony and is prohibited by federal law from possessing firearms and ammunition.
In custody since his arrest on the federal indictment, Hernandez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be designated in the near future.
The Corpus Christi Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Lance Watt is prosecuting the case.
Final Four Ordered to Prison in 10-Defendant Cocaine ConspiracyRead the Press Release
HOUSTON - The remaining defendants charged in a Dickinson area cocaine conspiracy have all been ordered to federal prison, announced U.S. Attorney Ryan K. Patrick. The 10 were charged in a multi-state drug trafficking conspiracy that had been moving cocaine since 2014.
Arturo Cruz, 35, of Dickinson, pleaded guilty to conspiracy to possess with the intent to distribute more than five kilograms or more of cocaine, while Patrick Frederick, 49, of Galveston, Dionisio Gonzalez, 56, of Bacliff, and Carlos Cantu, 36, of Dickinson, previously pleaded guilty to conspiracy to possess with intent to distribute more than 500 grams of cocaine.
Today, U.S. District Judge Vanessa Gilmore sentenced Cruz, who was responsible for distributing more than 50 kilograms of cocaine, to 130 months in federal prison. Frederick received a 120-month-term of imprisonment, while Gonzales and Cantu received respective terms of 77 and 87 months. The court found Cruz to be a leader within the conspiracy so his prison term included upward adjustments or increases in his calculated sentencing guideline range.
Cruz also forfeited his interests in real estate located in Dickinson valued in excess of $150,000.
The other six charged and convicted in the case included Arturo Cruz’s bother, Amado Cruz, 27, of Dickinson, along with Guadalupe Ochoa, 30, of Houston, Matt Olguin, 28, Reid Wilder 33, and Sidney Hobbs, 47, all of Dickinson. The previously received sentences ranging from 72-121 months in federal prison.
All were part of a multi-state drug trafficking organization that had existed since 2013. The drug trafficking organization, based out of the Dickenson area, had cocaine couriered in from Houston where it was then either sent out of state or redistributed to the surrounding areas.
The FBI led the nearly three-year Organized Crime Drug Enforcement Task Force investigation with the assistance of the Drug Enforcement Administration, Texas Department of Public Safety, Galveston County Sheriff’s Office and the Dickinson Police Department. Assistant U.S. Attorney John Jocher prosecuted the case.
Another Local Man Sent to Prison for Firearms ViolationRead the Press Release
CORPUS CHRISTI, Texas - A 25-year-old Corpus Christi man has been ordered to federal prison following his conviction of being a felon in possession of a firearm, announced U.S. Attorney Ryan K. Patrick. Fred Aaron Corona pleaded guilty Feb. 20, 2018.
Today, Senior U.S. District Judge John D. Rainey sentenced Corona to 37 months imprisonment to be immediately followed by 2 years of supervised release.
In February 2017, officers detained Corona for violating a park curfew. While speaking with the officers, Corona appeared to be intoxicated. Corona was arrested and officers impounded his vehicle, at which time authorities discovered a loaded .380 caliber semi-automatic handgun in the glovebox. Corona had previously been convicted in state court for numerous felonies and is prohibited by federal law from possessing firearms and ammunition.
Corona was taken into federal custody in December 2017 as part of Operation City Shield, a coordinated federal, state and local law enforcement operation designed to identify violent offenders, stop gun violence and protect the community.
Corona 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.
Convicted Sex Offender Detained on New Child Porn ChargeRead the Press Release
CORPUS CHRISTI, Texas - A 64-year-old Corpus Christi resident has been charged with possession of child pornography, announced U.S. Attorney Ryan K. Patrick.
Today, U.S. Magistrate Judge B. Janice Ellington ordered Manuel Diaz detained pending further criminal proceedings.
The criminal complaint filed April 27, 2018, alleges that in July 2017, Diaz was at a pharmacy printing photographs of nude children from a flash drive. A forensic examination allegedly resulted in the discovery of child erotica and child pornography images of children as young as 12-years-old. Law enforcement also discovered more than 750 images and 100 videos of child pornography, according to the charges. The criminal complaint further alleges Diaz has a prior conviction related to a sex offense.
If convicted, Diaz faces a minimum of 10 years and up to 20 years in federal prison and a possible $250,000 maximum fine.
Immigration and Customs Enforcement’s Homeland Security Investigations and Corpus Christi Police Department’s – Internet Crimes Against Children Task Force conducted the investigation with the assistance of the National Center for Missing and Exploited Children.
Assistant U.S. Attorney 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."
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Convicted Felon Sent to Prison on Firearms ChargeRead the Press Release
CORPUS CHRISTI, Texas - A 35-year-old Corpus Christi man has been ordered to federal prison following his conviction of being a felon in possession of a firearm, announced U.S. Attorney Ryan K. Patrick. Adam Lee Rodriguez pleaded guilty Feb. 1, 2018.
Today, U.S. District Judge Nelva Gonzales Ramos sentenced Rodriguez to 63 months imprisonment to be followed by three years of supervised release.
In July 2017, officers detained Rodriguez for violating a park curfew. While speaking with the officers, Rodriguez gave consent to search his vehicle, at which time authorities discovered a loaded 9mm semi-automatic handgun under his seat. Rodriguez had previously been convicted in state court for numerous felonies and is prohibited by federal law from possessing firearms and ammunition.
Rodriguez was taken into federal custody in December 2017 as part of Operation City Shield, an coordinated federal, state and local law enforcement operation designed to identify violent offenders, stop gun violence and protect the community.
Rodriguez 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.
Baytown Resident Heads to Prison for Multiple Child Pornography CrimesRead the Press Release
HOUSTON – A 50-year-old man from Baytown has been ordered to federal prison for possession, receipt and distribution of child pornography, announced U.S. Attorney Ryan Patrick. Marlin Louis Carman, of Baytown, pleaded guilty Feb. 16, 2018.
Today, U.S. District Judge Sim Lake sentenced him to 120 each for the charges, respectively. The sentences will run concurrently. Carman was further ordered to pay $15,300 special assessments 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.
Carman first came to the attention of law enforcement in September 2013 after multiple images of child pornography were found associated with his online email account. At the conclusion of the investigation, authorities discovered Carman was communicating with an email account holder in New York to obtain child pornography and later conducted a search of his residence, phone and email accounts, leading to the discovery of 3,090 videos and 13,519 images. Some of the images are of known victims identified through the National Center for Missing and Exploited Children.
Carman admitted ownership of the child pornography as well as the phone and email account he used to obtain it.
At the time of his plea, he admitted to using email to communicate with other individuals to search for, download and obtain child pornography. He also admitted to distributing the child pornography through his online account.
Following the plea hearing, Judge Lake revoked Carman’s bond and ordered him into custody where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation.
Assistant U.S. Attorney 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."
Jury Convicts Third Man in Synthetic Cannabinoid ConspiracyRead the Press Release
VICTORIA, Texas - A federal jury has returned a guilty verdict related to a large-scale synthetic narcotic manufacturing operation, announced U.S. Attorney Ryan K. Patrick. The jury deliberated for just under two hours before reaching its verdict, convicting Mohamed Ebrahim Salim Moton, 49, a citizen of India lawfully residing in Houston, of two counts of possession with intent to distribute a synthetic cannabinoid.
Two others charged in the indictment had previously pleaded guilty. Ataru Rahman Malik, 39, of Houston, and Thomas Edward Peplinski, 73, of Robstown, each pleaded guilty April 3, 2018, to one count of conspiracy to possess with intent to distribute a synthetic cannabinoid before Senior U.S. District Judge John Rainey. Malik and Peplinski are both set the sentencing for July 3, 2018. Moton’s sentencing is set for Aug. 7, 2018.
During the trial, the jury heard the testimony of several law enforcement officers who stated that in September 2016, the Houston Police Department received a tip concerning the discovery of a package of synthetic cannabinoids at a storage facility in the 10000 block of the Southwest Freeway. During the follow-up investigation, officers conducted surveillance at the location and were able to identify Moton dropping off large trash bags full of synthetic cannabinoids at several local storage units. The officers then observed Malik arriving at the storage units and removing the trash bags of synthetic cannabinoids at a later time.
One of the officers testified that on Feb. 10, 2017, they observed Moton leave his residence and retrieve two large trash bags of synthetic cannabinoids from one of the storage units and deliver them to Malik’s vehicle which was parked at an apartment complex in the 11000 block of Bissonnet in southwest Houston. Malik was then observed moving the trash bags into another vehicle that Peplinski was driving. After leaving the location, authorities conducted a traffic stop on Peplinski’s vehicle as he drove southbound on US-59 in Fort Bend County. During the traffic stop, the officers seized 899 packets of synthetic cannabinoids weighing approximately 30 pounds.
The officers testified that based on the investigation, they obtained felony arrest warrants for Moton and Malik through the Harris County District Attorney’s Office. On April 18, 2017, the Houston Police Department (HPD Narcotics Division executed arrest warrants for Malik and Moton related to the February incident. At the time of the arrests, the officers searched a residence in a southwest neighborhood and discovered approximately 580 pounds of synthetic cannabinoids and equipment used to manufacture and package the illegal substance. Officers also searched several area storage units and recovered additional packages ready to be sold. At the time of the arrests, it was the largest seizure of a synthetic cannabinoids manufacturing operation HPD discovered to date. In addition, officers seized approximately $108,000 in U.S. currency related to the criminal activity.
The evidence showed that laboratory analysis confirmed the presence of the synthetic cannabinoid FUB-AMB. In addition, the jury heard the testimony of two expert witnesses from the Drug Enforcement Administration (DEA), Chemical and Drug Evaluation Section related to the chemical structure and the pharmacological effects of FUB-AMB, which is controlled under the Controlled Substance Analog Act. The testimony also included how the DEA handles newly emerging synthetic narcotics, the adverse effects of those substance and imminent hazard they present to the public safety.
Synthetic cannabinoids are chemical compounds that mimic THC, the psychoactive ingredient in marijuana. These chemical compounds are applied to carrier mediums such as plant material and ingested using rolling papers, pipes, vaporizers or otherwise taken orally. Synthetic cannabinoids are usually sold in small, foil or plastic bags containing dried leaves (resembling potpourri) and is marketed as incense that can be smoked. It is commonly sold and known on the street as: “synthetic marijuana,” “fake weed,” “legal” and by its popular brand names such as: Kush, Spice, K2, Klimaxx and many other names.
In custody since his arrest, Moton was transferred to federal custody after the indictment and will remain in custody pending his sentencing. Malik and Peplinski were released on bond after their arrests and were allowed to remain on bond pending their sentencing.
All three men face a maximum punishment of up to 20 years of imprisonment and a possible $1 million maximum fine.
The Houston Police Department conducted the investigation with the assistance of the Drug Enforcement Adminisration and Immigration and Customs Enforcement's Homeland Security Investigations.
Assistant U.S. Attorney Lance Watt is prosecuting the case.
Long-Time Fugitive and Repeat Fraudster Sent to Prison AgainRead the Press Release
HOUSTON – The 75-year-old long time fugitive known as “Butch” Ballow has received a second federal sentence following his admission of defrauding investors in a Nevada company with shares traded on the over-the-counter securities market, announced U.S. Attorney Ryan K. Patrick. Harris Dempsey aka “Butch” Ballow, formerly of formerly of Galveston County, pleaded guilty Feb. 2, 2018, to wire fraud and conspiracy to commit wire fraud.
Today, U.S. District Judge Ewing Werlein Jr. sentenced Ballow to serve 40 years in prison – the statutory maximum. He was further ordered to pay $37,544,944 in restitution. At the hearing, the court heard from one victim whom Ballow defrauded out of $5 million. The victim explained that Ballow used religious pretenses to convince victims to invest money and that he presented himself in Mexico as a type of missionary. He further mentioned that he knew victims who had lost their life saving to Ballow.
Judge Werlein added that in all his decades on the bench, he could not think of a more outrageous fraudulent crime spree, calling it “despicable” and noting there were more than 500 victims.
Assistant U.S. Attorney (AUSA) John Lewis told the judge Ballow was a “financial predator” who would keep committing fraud as long as he was out of jail and explained Ballow had been using fake names to commit fraud since at least the early 1980s when he was convicted of a financial crime against a jewelry store in San Diego.
In this case, Ballow admitted to defrauding investors in E-SOL International Corporation.
At the time of the offense, Ballow was a fugitive from justice in the United States. He had previously been convicted of money laundering that centered on misrepresentations made in connection with the purchase and sale of stock. Ballow pleaded guilty in that case before U.S. District Judge David Hittner and was released on bond. He was set for sentencing Dec. 16, 2004, but failed to show, having fled the country for Mexico where he lived for almost five years under a series of fake names. While there, he defrauded numerous investors through a new scheme which is the basis for the sentencing today.
At the time of his plea, Ballow admitted that in 2005, while living as a fugitive in Mexico under the name John Gel, he purchased the majority of the publically traded shares of E-SOL and installed fictitious persons named Robert Remington and Marilyn Desimone as officers. At the time, E-SOL had almost no assets and conducted no business. Nonetheless, over the course of the next four years, Ballow sold E-SOL stock to investors in return for millions of dollars by deceiving them about the company’s assets and finances, while hiding his identity, his criminal convictions and his status as a fugitive.
In June 2008, Ballow pretended to be a banker named Tom Brown and convinced an American investor living in Puerto Aventuras, Mexico, to purchase E-SOL stock for $5 million. Ballow convinced the investor that E-SOL was developing a golf and recreational resort community in the jungle west of Cancun. However, the resort was fictitious and the stock was worthless. Ballow soon fled from Puerto Aventuras and surfaced under a new name a few months later in Puerto Vallarta, Mexico, where he continued to defraud investors.
Ballow was ultimately arrested by Mexican authorities July 13, 2010, in Nuevo Vallarta, Mexico, and extradited to the United States the following year.
Once in the United States, Judge Hittner ordered him to prison for 10 years in prison and to pay $10 million in restitution for the 2003 money laundering conviction.
Several other persons have been convicted of conspiring to commit wire fraud with Ballow while he was in Mexico and ordered to federal prison including Austin lawyer Patrick Lanier, 69, and Christopher Harless, 65, of Georgetown, who are currently serving a 17 and 20 years in federal prison, respectively. Other co-conspirators are awaiting sentencing or remain fugitives in the case.
The FBI and IRS - Criminal Investigation conducted the investigation with the assistance of the U.S. Marshals Service and U.S. Postal Inspection Service. The United States government also received extensive and valuable assistance from the governments of Mexico and Canada.
Assistant U.S. Attorneys John R. Lewis and Belinda Beek are prosecuting the case.
AG Sessions Selects SDTX to Receive Additional Resources to Combat the Southwest Border CrisisRead the Press Release
HOUSTON - Attorney General Jeff Sessions has selected the Southern District of Texas (SDTX) to receive additional personnel for the fight against illegal immigration, announced U.S. Attorney Ryan K. Patrick.
A total of 35 new Assistant U.S. Attorney (AUSA) positions have been allocated to the five U.S. Attorney’s Offices along the Southwest border, eight of which were dedicated to the SDTX.
The additional prosecutors will be utilized to handle the prosecutions of improper entry, illegal reentry and alien smuggling cases.
“The SDTX regularly prosecutes multiple thousands of illegal entry, illegal reentry and smuggling cases per year,” said Patrick. “These new attorneys will go towards increased enforcement of the administration’s zero tolerance policy towards those who illegally enter the county and other immigration matters. Our offices in Laredo, McAllen, Brownsville and Corpus Christi are the front line in this effort.”
“The American people made very clear their desire to secure our borders and prioritize the public safety and national security of our homeland,” said Sessions. “Promoting and enforcing the rule of law is essential to our republic. By deploying these additional resources to the Southwest border, the Justice Department and the Trump Administration take yet another step in protecting our nation, its borders and its citizens. It must be clear that there is no right to demand entry without justification.”
Due to a recent increase in the number of apprehensions at the Southwest border, the new AUSA positions will assist in the prosecutions of illegal reentry (8 U.S.C. § 1326), alien smuggling (8 U.S.C. § 1324) and improper entry (8 U.S.C. § 1325) pursuant to the Justice Department’s “Zero-Tolerance Policy” Sessions announced April 6, 2018, and its prior April 11, 2017, directive to prioritize charging immigration offenses.
A decision on how the new SDTX positions will be specifically allocated throughout the district has yet to be determined.
Southern Texas Patient Recruiter Convicted in $3.6 Million Home Health Care Fraud SchemeRead the Press Release
A federal jury found Mercy O. Ainabe, a patient recruiter for Texas Tender Care, guilty today for her role in a $3.6 million Medicare fraud scheme involving fraudulent claims for home health services.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Ryan K. Patrick of the Southern District of Texas, Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office, Special Agent in Charge C.J. Porter of U.S. Department of Health and Human Services-Office of Inspector General (HHS-OIG) Dallas Region, and the Texas Attorney General’s Medicaid Fraud Unit (MFCU) made the announcement.
After a three-day trial, Mercy O. Ainabe, 52, of Houston, Texas, was convicted of one count of conspiracy to commit health care fraud, five counts of health care fraud, and one count of conspiracy to pay health care kickbacks. Sentencing has been scheduled for July 27 before U.S. District Judge Sim Lake of the Southern District of Texas, who presided over the trial.
According to evidence presented at trial, the defendant and her co-conspirators submitted claims to Medicare for home health services that were not medically necessary and/or were not provided. Ainabe paid beneficiaries, doctors, physical therapy companies, and others for the paperwork, Medicare beneficiary information, and services needed to facilitate the fraud.
The case was investigated by the FBI, HHS-OIG, and MFCU, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Texas. The case is being prosecuted by Trial Attorneys Andrew Pennebaker and Elizabeth Young of the Fraud Section.
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.
More Than $13 Million Forfeited Against Multiple Individuals in Car Nationalization BusinessRead the Press Release
LAREDO, Texas - Seven people have been ordered to forfeit more than $13 million following their convictions related to a car nationalization business, announced U.S. Attorney Ryan K. Patrick.
Car nationalization is the process by which someone imports a U.S. vehicle into Mexico, such as registering the vehicle with the Mexican government. The Mexican government has specific customs laws or regulations regarding vehicle importation. A car nationalization business helps its customers navigate through these regulations for a fee.
Alejandro Cerda, 44, and Juan Carlos Cerda, 39, both of Laredo, had previously pleaded guilty to operating an unlicensed money transmitting business and making false statements on tax returns. Today, they were collectively ordered to forfeit real property valued at more than $7.4 million and approximately $5.2 million.
Ofelia Jenkins, 67, and Adrian Reyna, 37, both of Laredo, had also pleaded guilty to operating an unlicensed money transmitting business and were respectively ordered to pay a $45,000 and a $16,000 money judgement. Laredoans Elias Ibanez, 51, Gerardo Cadena, 38, and Roberto Cuevas, 42, had entered their guilty pleas to structuring international monetary transactions were each ordered to pay a $250,000 money judgement.
Juan Cerda and Alejandor Cerda owned and operated a vehicle nationalization company titled Grupo MCA Importaciones LLC. The Cerdas along with Reyna and Jenkins who were unlicensed to operate such a business, engaged in the business of transmitting money when they acquired bulk quantities of currency and other monetary instruments from Grupo MCA and other vehicle nationalization businesses operating in the Laredo area. They then opened specific Texas bank accounts whereby for a fee they transmitted the cash to others. The identified Texas banks accounts are known to have received and transmitted more than $24 million in U.S. currency during a 16-month period.
Cadena, Ibanez and Cuevas each owned and operated their own Laredo based vehicle nationalization company through which each admitted to structuring U.S. currency into Mexico at increments of less than $10,000 to avoid a known reporting requirements.
The FBI, IRS-Criminal Investigation. and Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation dubbed Operation Conundrum along with the Drug Enforcement Administration. Assistant U.S. Attorney Graciela R. Lindberg is prosecuting the case.
Local Woman Arrested for Defrauding Professional Football Player Out of More Than $1 MillionRead the Press Release
HOUSTON – A 44-year-old Houston woman has been taken into custody following the return of a federal indictment charging her for her role in a scheme involving mail, bank and wire fraud and aggravated identity theft, announced U.S. Attorney Ryan K. Patrick.
A grand jury returned a 16-count indictment April 25, 2018, against Tonya Lynn Adkism. She was taken into custody today and is expected to make her initial appearance before U.S. Magistrate Judge Dena Palermo at 10:00 a.m.
According to the indictment, Robert Meachem - a former professional football player - hired Adkism in June 2010 to manage his finances. During her employment, Adkism fraudulently acquired signatory authority over the victim’s corporate accounts and forged his signature on checks drawn on his personal accounts, according to the charges. As a result of her scheme, Adkism allegedly stole more than $1 million from Meachem.
If convicted, Adkism faces up to 20 years in prison for mail fraud and each of the two counts of wire fraud. She also faces two years in prison for each of the five counts of aggravated identity theft which must be served consecutively to the other sentences. Each of these charges also carries a possible $250,000 maximum fine. In addition, Adkism faces up to 30 years in prison and a possible $1 million maximum fine for each of the eight counts of bank fraud.
The FBI conducted the investigation. Assistant U.S. Attorney Justin R. Martin 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.Corpus Christi Man Heads to the Pen for Possessing of Child PornographyRead the Press Release
CORPUS CHRISTI, Texas - A 41-year-old Corpus Christi man has been sent to federal prison following his conviction of possessing child pornography, announced U.S. Ryan K. Patrick. Timothy Traut pleaded guilty Feb, 1, 2018.
Today, U.S. District Judge Nelva Gonzalez Ramos sentenced Traut to 120 months in prison. At the hearing, the court heard that Traut possessed images of children he knew and that he superimposed the children’s faces to images of child pornography. The court also read two letters from the parents of those children explaining how the crime impacted their lives.
Traut was further ordered to serve 15 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.
In March 2017, Queensland Police Services in Australia identified a computer discussing child pornography on an internet website. That computer was later linked to Traut who was using a profile name of “Horndog.” Traut had posted pictures to that website and made comments about the desire to have sexual intercourse with a child pictured in some of those images.
Agents later executed a search warrant at his residence, at which time they seized various electronic devices. Forensic analysis on those devices revealed more than 850 images and approximately 104 videos child pornography. Many of those videos included images of sexually explicit conduct involving prepubescent girls.
Traut has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of 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 Sentenced for Conspiring to Rob Drug Money from Undercover AgentRead the Press Release
McALLEN, Texas – Two illegal aliens residing in Pharr have been ordered to federal prison for conspiring to interfere with commerce by threats or violence and to carrying a firearm during and in relation to a crime of violence, announced U.S. Attorney Ryan K. Patrick. Rogelio Acosta-Moctezuma, 39, and Jose Israel Villa-Reyes, 28, admitted they conspired to rob an undercover agent. Acosta-Moctezuma also pleaded guilty to an unrelated charge of conspiring to export defense articles.
Today, U.S. District Judge Micaela Alvarez imposed a 107-month sentence for Acosta-Moctezuma, while Villa-Reyes was ordered to serve 103 months. Not U.S. citizens, both are expected to face deportation proceedings following their sentences. In handing down the sentence, Judge Alvarez noted that while no one was hurt in this case, there is a bad problem south of the border with violence drug cartels commit and that she is seeing more of that violence being imported here. She noted those concerns and the fact that the crime occurred in a public place.
On Feb. 1, 2017, a confidential informant negotiated the purchase of two kilograms of cocaine and three kilograms of methamphetamine for $60,000. The informant arrived at a parking lot in Pharr with an undercover agent to meet with Acosta-Moctezuma and Villa-Reyes and pick up the narcotics.
Shortly after their arrival, the agent said he was going to call for the delivery of the money. While on the phone, Acosta-Moctezuma exited the vehicle and approached the agent, at which time law enforcement arrested him. A pistol was in his waistband, which he admitted was given to him for the purpose of meeting with the buyers. Villa-Reyes remained in the vehicle, but was also found with a pistol.
The packages they brought to the transaction revealed the presence of Styrofoam and another substance, but no narcotics.
Both admitted they went to the meeting with the weapons not to sell drugs but to steal the $60,000.
In the unrelated case involving the conspiracy to export defense articles, Acosta-Moctezuma admitted to supplying a .223 rifle to an undercover agent posing as a buyer who was going to smuggle the rifle to Mexico. He was sentenced to 37 months in prison on that case, to run concurrent with the robbery charge.
Both men will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation with the assistance of the Border Patrol’s Evidence Collection Team and the Pharr Police Department. Immigration and Customs Enforcement’s Homeland Security Investigations conducted the unrelated defense articles investigation. Assistant U.S. Attorney Joseph Leonard is prosecuting the case.
Rip Crew Member Sentenced to Federal PrisonRead the Press Release
McALLEN, Texas – The first defendant involved in a rip crew responsible for multiple home invasions and carjackings to steal narcotics in Hidalgo County has been ordered to federal prison, announced U.S. Attorney Ryan K. Patrick. Jorge Antonio Calvo-Ayala, 25, of Pharr pleaded guilty last year to conspiring to possess with the intent to distribute more than five kilograms of cocaine.
Today, U.S. District Judge Micaela Alvarez ordered Calvo-Ayala to serve 95 months in federal prison to be immediately followed by five years of supervised release. In handing down the sentence, the court considered Calvo-Ayala’s role in a April 2017 home invasion in San Juan, in which members of the rip crew conducted a home invasion armed with firearms to steal more than seven kilograms of cocaine. Judge Alvarez stated that the members’ violent conduct will likely traumatize and haunt the eight-year-old child that was present during the home invasion.
Additional members of the rip crew are also responsible for a June 2015 carjacking in Mission, a February 2016 home invasion in Hidalgo, a July 2016 carjacking of an 18- wheeler in Edinburg, a November 2016 shoot-out involving an attempted carjacking in McAllen, a January 2017 carjacking in Palmview, a March 2017 carjacking in McAllen, an April 2017 home invasion in Mission, an April 2017 carjacking in Pharr, an April 2017 home invasion in San Juan, a June 2017 home invasion in McAllen, and a July 2017 home invasion in Mission. The members of the rip crew conducted each of the home invasions or carjackings in hopes of stealing controlled substances, primarily cocaine, from other individuals.
Those who have also pleaded guilty in the conspiracy and are pending sentencing include Danny Cano, 30, Antonio Javier Gomez aka “Little T,” 28, Marlyn Gonzalez, 39, and Arturo Vargas aka “Petu” or Cholo,” 35, all of Mission; Mexican nationals Miguel Marin Cerda aka “Tigre,” 30, Jose Garcia-De La Torre aka “Coco,” 22, Carlos Guadalupe Aquino-Pacheco aka “Tomy,” 20, Alfredo Avalos-Sanchez aka “Chore,” 26, Gustavo Angel DeLeon-Covarrubias aka “Tripa,” 19, and Jose Arturo Reyes-Sanche aka “Gordo,” 19; along with Juan Antonio Flores aka “Paisa,” 27, of Weslaco.
The FBI Safe Streets Task Force and Drug Enforcement Administration conducted the investigation with the assistance of Border Patrol, Immigrations and Customs Enforcement’s Homeland Security Investigations, Hidalgo County Sheriff’s Office, Texas Department of Public Safety Regional Crime Lab and police departments in McAllen, Pharr, San Juan, Mission and Palmview. Assistant U.S. Attorneys Roberto Lopez Jr. and K. Alejandra Andrade prosecuted the case.
Local Business Owner Convicted of Conspiring to Defraud the VARead the Press Release
HOUSTON – A 55-year-old Pearland resident has entered a guilty plea to conspiracy to commit wire fraud, announced U.S. Attorney Ryan K. Patrick.
Henry Guillory admitted that beginning on Nov. 21, 2012, he was engaged in a conspiracy to defraud the Department of Veteran Affairs (VA).
The VA awards contracts to qualified companies that disabled veterans own as part of the Service Disabled Veteran Owned Small Business (SDVOSB) program.
Guillory recruited a service disabled veteran to falsely claim majority ownership of a Houston-based company named MEP Sales and Service (MEP), while Guillory, the true majority owner, claimed minority ownership. This was done so as to get MEP certified as a SDVOSB thereby providing MEP the ability to be awarded contracts. Because of their fraudulent claims, MEP was wrongfully awarded 12 VA small business set-aside contracts totaling more than $1.6 million that should have been given to legitimate veteran-owned small businesses. All 12 of these set-aside contracts were for maintenance and/or construction work at the DeBakey VA Medical Center.
U.S. District Judge Alfred H. Bennett accepted the plea and set sentencing for July 12, 2018, at which time Guillory faces up to five years in federal prison and a possible $250,000 maximum fine. He was permitted to remain on bond pending that hearing.
VA - Office of Inspector General conducted the investigation. Assistant U.S. Attorney Daniel C. Rodriguez is prosecuting the case.
Laredo Federal Jury Convicts Florida Woman for Meth ImportationRead the Press Release
LAREDO, Texas – A 28-year-old woman has been found guilty of importing 15.62 kilograms of crystal methamphetamine, announced U.S. Attorney Ryan K. Patrick. The jury deliberated for five hours following a two-day trial before convicting Mayra Aguirre, of Bradenton, Florida.
On Oct. 9, 2017, Aguirre attempted to enter the United States via the Lincoln-Juarez Bridge driving her recently-purchased silver 2012 Dodge Durango. Her sister and young toddler were with her. Officers became suspicious after she gave inconsistent replies to standard questions and could not provide proof of vehicle registration.
She was referred to secondary inspection, at which time officers detected a powerful chemical odor emanating from the interior of the vehicle. The odor did not dissipate and initially made some officers nauseous. An inspection revealed obvious signs of mechanical tampering with the discovery of non-factory bolts, glue and unusual welding under the carpeting. A subsequent search revealed 15.62 kilograms of methamphetamine stored within 29 plastic bags hidden inside a false “trap door” panel manually attached to the inside of vehicle.
At trial, the jury also heard that the drugs have an estimated value of up to $500,000 in Florida.
The defense attempted to convince the jury the methamphetamine was placed in her client’s vehicle when it was stolen in Mexico a month prior to her arrest. They did not believe her claims and found her guilty as charged.
Sentencing will be set a later date. At that hearing, Aguirre faces up to life in federal prison and a possible $10 million fine.
Immigration and Customs Enforcement’s Homeland Security Investigations and Customs and Border Protection conducted the investigation. Assistant U.S. Attorneys Michael Eaton, Christopher Dos Santos and Francisco J. Rodriguez are prosecuting the case.
Alamo Men Sentenced to Prison for Smuggling AliensRead the Press Release
McALLEN, Texas – An Alamo man and an illegal alien living in Donna have been ordered to prison for their part in an alien smuggling conspiracy, announced U.S. Attorney Ryan K. Patrick. Daniel Medina-Acosta, 37, and Arturo Rocha-Guajardo, 37, pleaded guilty in November 2017.
Today, U.S. District Judge Micaela Alvarez sentenced Medina-Acosta, 37, to 95 months in federal prison, while Rocha-Guajardo received a 55-month prison term. Medina-Acosta will also serve three years of supervised release. Not a U.S. citizen, Rocha-Guajardo is expected to face deportation proceedings following his incarceration.
The investigation began in April 2017 when a rancher near Encino identified at tractor-trailer appearing to be dropping off illegal aliens on multiple occasions. The investigation led to the discovery of an illegal alien who later identified Medina-Acosta as the person who transported him in a white truck and as the caretaker of a stash house in Donna. Another alien identified Medina-Acosta and stated that he had threatened them with a weapon.
Authorities began conducting surveillance and later executed a search warrant at the stash house. At that time, they discovered 13 illegal aliens inside with Rocha-Guajardo acting as the caretaker of the residence. Medina-Acosta was taken into custody after agents executed an arrest warrant on Oct. 3, 2017.
Both men will remain in custody pending their transfer to U.S. Bureau of Prisons facilities.
Immigration and Customs Enforcement’s Homeland Security Investigations and Border Patrol conducted the investigation. Assistant U.S. Attorney Joseph Leonard is prosecuting the case.
Lake Jackson Area Attorney Convicted in Scheme to Commit Bank FraudRead the Press Release
HOUSTON ‐ A Lake Jackson area attorney has entered a guilty plea to bank fraud for his role in a mortgage fraud scheme, announced U.S. Attorney Ryan K. Patrick.
Kirk Lawrence Brannan, 64, admitted to conspiring with others from 2005 to 2009 to execute a scheme to defraud Wells Fargo Bank and other lenders.
Brannan sold 10 beach homes in the Freeport/Surfside area to “straw buyers” at exorbitant prices. Other co-conspirators recruited straw buyers who created loan applications with misrepresentations that lenders relied upon in deciding to make the mortgage loans. The applications contained misrepresentations of the buyer’s address, employer, income and expenses. The applications also suggested the buyers were much better credit risks than they actually were. Brannan admitted he paid kickbacks to co-conspirators each time one of the beach homes was sold to a straw buyer.
The beach properties were sold at two to three times the appraised values. The mortgage lenders, including Wells Fargo Bank, were induced to lend the inflated amounts for the purchases through flawed or fraudulent appraisals which were based on comparisons Brannan manufactured to further the scheme.
Brannan created settlement statements that suggested he sold three of his properties to his children at exorbitant prices. Appraisers relied upon these “sales” as comparable sales in appraising Brannan’s remaining properties sold to straw buyers. As a result of the fraudulent appraisals, he and his co-conspirators were able to inflate the values for his properties and deceive the lenders into approving home loans at those exorbitant amounts.
All of the straw buyers defaulted on the mortgages, and all 10 of the beach properties ended up in foreclosure.
The fraudulent mortgage loan scheme resulted in a loss of $5,317,350 to Wells Fargo Bank and the other lenders. Brannan paid $2,401,368 to his co-conspirators as part of the scheme.
U.S. District Judge Lee Rosenthal accepted the plea and set sentencing for Aug. 29, 2018, at which time Brannan faces up to 30 years in federal prison and a possible $1 million maximum fine. He was permitted to remain on bond pending that hearing.
Co-conspirators Chucoboie Lanier, 41, David Lee Morris, 55, and Derwin Jerome Blackshear, 50, all of Houston, previously pleaded guilty for their roles in the scheme. They are set for sentencing Sept. 26, 2018.
The Texas Department of Public Safety and the FBI conducted the investigation. Assistant U.S. Attorneys Robert Johnson and Michael Day are prosecuting the case.
Robstown Based Heroin Conspiracy DismantledRead the Press Release
CORPUS CHRISTI, Texas – The final member of a 10-defendant heroin and money laundering conspiracy has pleaded guilty, announced U.S. Attorney Ryan K. Patrick. Jesus Gutierrez, 46, of Corpus Christi, pleaded guilty today to conspiracy to possess with intent to distribute more than one kilogram of heroin and conspiracy to launder money.
The court learned today 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 evidence presented during today’s plea demonstrated that Gutierrez and his nephew, Enrique Gutierrez Jr., regularly obtained kilogram quantities of heroin during the conspiracy which was then distributed via the other defendants. The overall scope of the conspiracy was estimated to be between 10-30 kilograms of heroin. The conspiracy operated between April 2016 and October 2017, according to the evidence presented to the court.
Previously, Gutierrez Jr., 31, of Sandia, Louie Molina, 36, of Robstown, Arturo Garcia, 55, of Mathis, Michael Flores, 36, of Robstown, and Jesus Leal Jr., 34, of Robstown, pleaded guilty to conspiracy to possess with intent to distribute more than one kilogram of heroin. Gutierrez Jr. also pleaded guilty to conspiracy to launder drug money as did Renee Gutierrez, 37, of Corpus Christi. Tim Molina, 34, of Robstown, Sakhone Chanhrattana, 35, of Jarrell, and Javier Ramirez, 52, of Alice, entered their pleas to possession with intent to distribute heroin.
Sentencing for Gutierrez has been set before Judge Nelva Gonzales Ramos for Aug. 8, 2018. At that time, he faces a minimum of 10 years and up to life in prison for the conspiracy and a maximum of 20 years for the money laundering.
The Drug Enforcement Administration and the Texas Department of Public Safety conducted the investigation. Assistant U.S. Attorney Jon Muschenheim is prosecuting the case.
Mexican Man Receives Significant Sentence in Alien Death CaseRead the Press Release
LAREDO, Texas – A 25-year-old man from Nuevo Laredo, Mexico, has been ordered to prison following his conviction of conspiracy to transport aliens which resulted in death, announced U.S. Attorney Ryan K. Patrick. Omar Gonzalez-Herrera pleaded guilty on Dec. 4, 2017.
Today, U.S. District Judge Diana Saldana ordered Gonzalez-Herrera to serve a 121-month term of imprisonment. Not a U.S. citizen, he is expected to face deportation proceedings following his sentence.
On Aug. 2, 2017, law enforcement found footprints near the Rio Grande River in Laredo which led them to a group of 14 people suspected of illegally being in the country. After following the prints, they encountered a group of fourteen persons. They also found a Glock handgun nearby on the ground. Upon further investigation, authorities learned the aliens had just crossed into the country via the Rio Grande River. They identified Gonzalez-Herrera as the foot guide.
Gonzalez-Herrera later admitted he was in fact the foot guide and that the Glock handgun was his. He was carrying it within his waist-band when he led the other aliens into the United States. He stated he was to be paid $1,500.
While crossing the river, three people died. All had been swept away by the current of the river and drowned. One of the victims was a child.
Gonzalez-Herrera 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 along with Border Patrol. Assistant U.S. Attorney Christopher dos Santos prosecuted the case.
Former Beck Group Construction Manager and 8 Others Charged with Embezzling $3.4 MillionRead the Press Release
HOUSTON – A total of nine people have been charged with wire fraud and money laundering in connection with a scheme to embezzle $3.4 from the Beck Group in Houston, announced U.S. Attorney Ryan K. Patrick.
A 24-count indictment was unsealed today against seven defendants charged for their roles in the scheme - Hannah Musleh, 49, and Akram Elias Musleh, 54, both of Houston; Collette Devoe Hines, 49, and Lanamasha Hampton, 42, both of Atlanta, Georgia; Janell Crosby Quant, 38, of Union City, Georgia; Heather Ashley Sowa, 31, of Denver, Colorado; and William Lewis Sutton Jr., 48, of Los Angeles, California. A criminal information charging Moses Said, 42, of Houston, was filed yesterday, while a criminal complaint was previously filed against Charles Lee Williams, 42, of Los Angeles.
As a construction manager with the Beck Group, Said was in charge of the Le Meridien Hotel Project in downtown Houston from 2016 to 2017, according to court records. Hampton, Quant, Hines, Sowa, Hannah Musleh, Akram Musleh, Sutton and Williams allegedly created shell companies in the scheme which submitted false invoices to the Beck Group for payment for construction products that were not provided and construction services that were not performed.
Said allegedly approved and submitted the false invoices for payment, causing the Beck Group to issue payments to the shell companies. Upon receipt of the monies, the other seven defendants allegedly paid some of the fraud proceeds to Said. They allegedly attempted to conceal and disguise the nature and origin of the proceeds by transferring them to other companies and individuals.
If convicted, all face up to 20 years in prison and a possible $6.8 million maximum fine.
The FBI conducted the investigation. Assistant U.S. Attorney Vernon Lewis is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is considered innocent until proven guilty in a court of law.###
Corpus Christi Doctor Admits to Keeping False Prescription RecordsRead the Press Release
CORPUS CHRISTI, Texas - A 51-year-old Corpus Christi physician has admitted he furnished false information in a record of dispensed controlled substances, announced U.S. Attorney Ryan K. Patrick.
Dr. Michael Jerome Pendleton pleaded guilty today. At the hearing, the court also heard that in February 2017, the Texas Medical Board found Pendleton was operating an unregistered pain clinic and that he had surrendered his Drug Enforcement Administration (DEA) registration license.
According to Title 21 of the Code of Federal Regulations, a registered individual practitioner is required to keep records of controlled substances listed in Schedules II, II, IV and V if the practitioner regularly engages in the dispensing or administrating of controlled substances.
Starting in September 2013, law enforcement initiated an investigation into Pendleton’s practice based on his prescription writing practices that included a high number of proscriptions for controlled substances. Law enforcement conducted eight undercover visits to Pendleton’s office. During seven of those occasions, Pendleton prescribed hydrocodone - a Schedule II drug under the Controlled Substance Act.
In November 2016, agents executed a search warrant on Pendleton’s office and seized several documents. The investigation revealed Pendleton had omitted from his records information he was required to provide including the hydrocodone he had distributed to the undercover agents.
Sentencing has been set before Senior U.S. District Judge John D. Rainey on July17, 2018. At that time, Pendleton faces up to four years in federal prison and a possible $250,000 maximum fine.
The DEA, IRS-Criminal Investigation, Texas Department of Public Safety, Corpus Christi Police Department and the Texas Medical Board conducted the investigation as part of a joint task force. Assistant U.S. Attorney Hugo R. Martinez is prosecuting the case.
Alien Smuggling Ring DismantledRead the Press Release
McALLEN, Texas – With the sentencing of the leaders today, seven members of a smuggling group that harbored and/or transported more than 200 undocumented aliens from the Rio Grande Valley to Houston have all been ordered to federal prison, announced U.S. Attorney Ryan K. Patrick.
Jose Luis Soto-Lopez, 52, and his daughter, Erica Janine Soto, 27, both who resided in Brownsville, were sentenced to 54 and 21 months in federal prison for their roles in an the alien smuggling that Soto-Lopez led. Soto will also serve two years of supervised release, while Soto-Lopez, not a U.S. citizen, is expected to face deportation proceedings following his prison term.
The conspiracy ran from at least Feb. 10, 2014, through Sept. 1, 2016.
Soto-Lopez and Soto recruited individuals to either harbor undocumented aliens in stash houses throughout Hidalgo County or serve as guides for undocumented aliens transported from stash houses to a residence in Houston.
Soto-Lopez and Soto coordinated or were involved in the unsuccessful transport of 48 undocumented aliens, including a 13-year-old child and other minor children, on at least seven different occasions between Feb. 10, 2014, and May 10, 2016 in Brooks, Jim Hogg, Webb and Starr Counties. On four of the seven occasions, load vehicles involved in the smuggling of the undocumented aliens either crashed or resulted in a vehicle bail-out to avoid law enforcement.
The investigation further revealed alien stash houses that Soto-Lopez and Soto ran in Hidalgo County were discovered on at least three occasions from Aug. 9, 2016, through Sept. 1, 2016, resulting in the apprehension of 45 undocumented aliens.
At the time of Soto-Lopez and Soto’s arrest, authorities conducted a search of their residence in Brownsville where they found multiple vehicles and vehicle titles matching vehicles the organization used. The vehicle titles were registered to names and/or addresses not belonging to Soto-Lopez or Soto.
The investigation also revealed Soto had previously been encountered on Jan. 10, 2016, with a ledger consistent with documenting the transport of approximately 113 additional aliens from Oct. 27, 2015, through Jan. 7, 2016. The ledger in Soto’s possession also contained information on rental properties, travel directions and international Western Union or Moneygram transactions consistent with alien smuggling. Based on information contained within the ledger, the organization appeared to be charging $800-$2600 to transport and/or harbor each undocumented alien.
Five other individuals involved in the smuggling organization were all from Mexico and have also been sentenced to varying terms up to 23 months imprisonment. They are also expected to face deportation proceedings.
Border Patrol and Immigration and Custom's Enforcement's Homeland Security Investigations conducted the investigation with the assistance of the Duval County Sheriff’s Office. Assistant U.S. Attorney Roberto Lopez Jr. prosecuted the case.
Nigerian Sent to Prison for BEC FraudRead the Press Release
HOUSTON – A 34-year-old Nigerian man who illegally resided in Houston has been ordered to prison for his involvement in numerous Business Email Compromise (BEC) schemes. Samson Olugbenga Oyekunle pleaded guilty to conspiracy to commit wire fraud Oct, 6, 2017.
Today, U.S. District Judge Melinda Harmon ordered Oyekunle to serve 63 months in federal prison. He initially came to the United States on a student visa, but not a U.S. citizen, he is expected to face deportation proceedings following his sentence. At the hearing today, a victim spoke before the court as to how this case has devastatingly affected him and his law practice. Judge Harmon further ordered Oyekunle to pay restitution to the victims he defrauded.
BEC fraud is a sophisticated fraud targeting businesses that regularly perform wire transfer payments. The fraud is carried out by compromising legitimate business e-mail accounts through social engineering or computer intrusion techniques to conduct unauthorized transfers of funds. The front end fraud of these BEC schemes originates from international locations. The fraudsters will use the method most commonly associated with their victim's normal business practices and make victims believe the emails are coming from a legitimate source. Others, such as Oyekunle, working within the conspiracy open bank accounts with counterfeit passports that are being funded with fraudulent BEC wire transfers. These domestic bank accounts are a crucial component of the fraud scheme being a success.
From on or about Jan. 1, 2016, through February 2, 2017, Samson Oyekunle was involved in numerous BEC schemes. Co-conspirators, working outside the United States, caused funds obtained through a variety of BEC schemes to be wire transferred into the various bank accounts Oyekunle fraudulently opened.
Oyekunle would open bank these bank accounts in or around the Houston area with counterfeit passports in order to facilitate fraud payments into these accounts. Oyekunle opened numerous bank accounts at several financial institutions including Chase Bank, Bank of America, Capital One Bank, First National Bank of Texas, and Wells Fargo Bank.
A total of 30 fraudulent wire transfers totaling $823,765 were taken from victims across the United States under false pretenses and were deposited into these accounts.
Oyekunle has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The U.S. Postal Inspection Service conducted the investigation along with Department of State – Diplomatic Security Service. Assistant U.S. Attorney Suzanne Elmilady is prosecuting the case.
Former Mexican Governor Extradited to the Southern District of TexasRead the Press Release
BROWNSVILLE, Texas - Tomas Yarrington Ruvalcaba, the former governor of the State of Tamaulipas, Mexico, and a former PRI Party candidate for Mexican President, has been extradited to the United States. Ruvalcaba is charged in a Brownsville indictment which includes allegations of racketeering, drug smuggling, money laundering and bank fraud.
U.S. Attorneys Ryan K. Patrick and John F. Bash, of the Southern and Western Districts of Texas, respectively, made the announcement along with Special Agent in Charge Shane Folden of Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Special Agent in Charge Will R. Glaspy of Drug Enforcement Administration (DEA), Acting Special Agent in Charge Andy Tsui of IRS - Criminal Investigation (CI) and Special Agent in Charge Christopher Combs of the FBI.
In April 2017, Yarrington was captured in Italy while traveling under an assumed name and false passport and other identification documents. He was taken into custody on a provisional arrest warrant based on the indictment returned in May 2013. Although Yarrington contested his extradition, Italian authorities recently authorized his extradition to the United States.
He has now arrived in the Southern District of Texas to face the charges and is expected to make his initial appearance Monday, April 23 at 1:30 p.m. before U.S. Magistrate Ronald Morgan in Brownsville.
He was charged in the Brownsville Division of the Southern District of Texas following an investigation that spanned several years. The indictment alleges Yarrington, 61, and Fernando Alejandro Cano Martinez, 61, the owner of a Mexican construction firm, conspired to violate the provisions of the Racketeer Influenced and Corrupt Organization (RICO) statute. The two men are also charged with conspiracy to launder money, conspiracy to defraud and conspiracy to make false statements to federally insured U.S. banks.
Yarrington is also separately charged with a conspiracy to violate the provisions of the Controlled Substances Act, two substantive bank fraud counts and a conspiracy to structure currency transactions at a domestic financial institution. Cano is separately charged with three counts of bank fraud.
“HSI aggressively pursues transnational criminal organizations that pose a threat to the U.S. national security, to include corrupt public officials who use their position and influence to further the illicit activity,” said Folden. “HSI is committed to upholding the rule of law and investigating those involved in criminal activity and bringing the illicit gains of these crimes to the U.S.”
“This case highlights the impact multiple agencies can have when they join forces. DEA, HSI, IRS-CI and FBI along with our state, local and international law enforcement partners will continue to work together and pursue those who threaten our country through the smuggling and distribution of illegal and dangerous drugs such as cocaine,” said Glaspy. “This extradition sends a global message that those accused of leveraging their political positions to conduct drug trafficking and other criminal activity will be brought to justice.”
“This investigation took law enforcement above and beyond its traditional role in financial crimes,” said Tsui. “The apprehension of Tomas Yarrington Ruvalcaba underscores IRS-CI’s commitment to assist our law enforcement partners, both foreign and domestic, and follow the money trail across the globe to unravel this and other complex financial investigations.”
Yarrington served as governor of Tamaulipas from 1999 to 2004. Tamaulipas lies along the southern border between the United States and Mexico directly across from Brownsville and Laredo.
According to the indictment, beginning in approximately 1998, Yarrington received large bribes from major drug traffickers operating in the Mexican state of Tamaulipas, including the Gulf Cartel. In return, Yarrington allegedly allowed them to operate their large scale, multi-ton enterprises freely, which included the smuggling of large quantities of drugs to the United States for distribution. From 2007 to 2009, Yarrington allegedly became involved in the smuggling of large amounts of cocaine through the Port of Veracruz into the United States.
Yarrington also collected bribes from commercial operations in Mexico, according to the indictment. Cano operated Materiales y Construcciones Villa de Aguayo, S.A. de C.V., a construction firm in Tamaulipas that received significant public works contracts during Yarrington’s term as governor. The indictment alleges Cano, in turn, paid bribes to Yarrington to include the acquisition of real estate in front names for him.
The indictment further alleges Yarrington also received control over stolen public funds in the latter part of 2004. Portions of those funds were allegedly used to buy a Sabreliner 60 airplane in January 2005. As part of that purchase, $300,000 was transferred to a bank account in the United States. Another portion of the allegedly stolen funds, $5 million Mexican pesos, was transferred to Cano in the spring of 2005, according to the indictment.
The indictment further alleges that starting in approximately 1998, Yarrington, and later to include Cano, became involved in the acquisition of valuable assets in the United States, using front names and business entities established starting in 2005 to disguise the true ownership of the assets. The assets allegedly included bank accounts, residences, airplanes, vehicles and real estate in Bexar, Cameron, Hidalgo and Hays Counties, many of which were acquired via allegedly fraudulent loans from banks in Texas. According to the indictment, bank accounts established in front names at Texas banks were used to receive and disburse money to carry the ongoing costs of the assets, such as loan costs and condo fees.
The indictment identifies numerous specific front entities involved in the scheme, each of which allegedly applied for multi-million dollar fraudulent loans at Texas banks, which Cano allegedly personally guaranteed. The indictment details a total of more than $7 million in transfers into the U.S. accounts of the front entities.
Additional entities were created and used to apply for other loans to fund the purchase of still other assets, according to the indictment. Numerous currency transactions were allegedly conducted at First National Bank, headquartered in Edinburg, Texas, in a structured manner in amounts at or below $10,000 in order to evade the filing of Currency Transaction Reports by the bank.
Cano is not in the custody of the United States and a warrant remain outstanding for his arrest. Anyone with information about his whereabouts is asked to contact Homeland Security Investigations at 956-542-5811. Persons calling from Mexico should call 001-800-010-5237.
The RICO and money laundering charges each carry sentences of up to 20 years in prison, while conspiracy to commit bank fraud carries as possible punishment up to 30 years. The drug conspiracy charges carry a term of imprisonment of at least 10 years. The currency structuring charges carry a possible five-year-term of imprisonment.
The indictment also includes a notice of forfeiture. Some of the assets identified in the indictment already have been seized and forfeited to the United States in civil forfeiture actions over the course of the investigation, to include approximately 46 acres in Bexar County, a condo on South Padre Island, a 2005 Pilatus airplane and residences in Hidalgo and Hays counties.
The investigation leading to the indictment has been conducted by the Organized Crime Drug Enforcement Task Force in Brownsville, San Antonio, Houston, Corpus Christi and New York and has included agents and officers with HSI, DEA, IRS-CI, FBI and the Texas Attorney General’s Office. The Criminal Division’s Office of International Affairs handled the extradition in this matter. The United States government also acknowledges with gratitude the significant assistance received from the government of Mexico in the course of this investigation. Additionally, the United States acknowledges the assistance of the U.S. Marshals Service, HSI-Rome, HSI-Mexico City, the Italian Ministry of the Interior (particularly Interpol Rome and the Central Operations Service of the Italian National Police) and the Italian Ministry of Justice in Yarrington’s extradition.
Assistant U.S. Attorneys Julie K. Hampton, Jody Young, Karen Betancourt and Jon Muschenheim are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless and until convicted through due process of law.Former Venezuelan Official Pleads Guilty to Money Laundering Charge in Connection with Bribery SchemeRead the Press Release
HOUSTON - The former general manager of the procurement subsidiary of Venezuela’s state-owned and state-controlled energy company, Petroleos de Venezuela S.A. (PDVSA), pleaded guilty today for his role in an international money laundering scheme involving bribes paid by the owners of U.S.-based companies to Venezuelan government officials to corruptly secure energy contracts and payment priority on outstanding invoices.
U.S. Attorney Ryan K. Patrick, Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and Special Agent in Charge Mark Dawson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations’ (ICE-HSI) Houston Field Office made the announcement.
Cesar David Rincon Godoy (Cesar Rincon), 50, a citizen of Venezuela previously residing in Spain, pleaded guilty today in federal court in Houston to one count of conspiracy to commit money laundering. U.S. District Judge Kenneth M. Hoyt of the Southern District of Texas accepted Cesar Rincon’s plea and imposed a personal money judgment in the amount of $7,033,504.71 against the defendant, who agreed to the entry of an order of forfeiture. Sentencing is scheduled for July 9, 2018.
Cesar Rincon was arrested in Spain in October 2017 and subsequently extradited to the United States after a federal grand jury in the Southern District of Texas returned a 20-count indictment against him and Luis Carlos De Leon Perez (De Leon), 41; Nervis Gerardo Villalobos Cardenas (Villalobos), 50; Alejandro Isturiz Chiesa (Isturiz), 33; and Rafael Ernesto Reiter Munoz (Reiter), 39. According to admissions made in connection with Cesar Rincon’s plea, between January 2012 and June 2013, he conspired with De Leon, Villalobos, Isturiz, Reiter and others, all of whom were then-current officials of PDVSA and its subsidiaries or former officials of other Venezuelan government agencies or instrumentalities, to solicit PDVSA vendors for bribes and kickbacks in exchange for providing assistance to those vendors in connection with their PDVSA business. Specifically, Cesar Rincon admitted he accepted bribes from Roberto Enrique Rincon Fernandez (Roberto Rincon), 57, of The Woodlands, and Abraham Jose Shiera Bastidas (Shiera), 54, of Coral Gables, Florida, in exchange for taking official acts in his capacity as general manager of PDVSA’s procurement subsidiary in order to assist Roberto Rincon’s and Shiera’s companies, including their U.S.-based companies, in receiving payment priority and receiving additional PDVSA contracts. Cesar Rincon further admitted he then conspired with Roberto Rincon and Shiera to launder and conceal the proceeds of the bribery scheme through a series of financial transactions, including wire transfers to accounts in the United States and Switzerland held in the names of individuals or entities other than Cesar Rincon. Both Roberto Rincon and Shiera previously pleaded guilty in the Southern District of Texas to charges under the Foreign Corrupt Practices Act (FCPA) for their respective roles in the bribery scheme. They currently await sentencing.
As part of his plea agreement, Cesar Rincon also admitted to soliciting and receiving bribes from other owners of energy companies based in the United States in exchange for his assistance in helping those individuals and their companies win business with PDVSA and obtain payment from PDVSA on outstanding invoices ahead of other PDVSA vendors. In total, Cesar Rincon admitted to conspiring with others to launder at least $7,033,504.71 in proceeds from the various bribery schemes in which he participated.
The charges against De Leon, Villalobos, Isturiz and Reiter remain pending. Each of the four remaining defendants is charged with one count of conspiracy to commit money laundering and with one or more counts of money laundering. De Leon and Villalobos are also each charged with one count of conspiracy to violate the FCPA. De Leon was extradited from Spain on March 9 and was ordered detained pending trial following a detention hearing held on April 10 before U.S. Magistrate Judge Frances H. Stacy of the Southern District of Texas. Villalobos and Reiter remain in Spanish custody pending extradition and Isturiz remains at large.
Cesar Rincon becomes the latest individual to plead guilty as part of a larger, ongoing investigation by the U.S. government into bribery at PDVSA. Including Cesar Rincon, Roberto Rincon and Shiera, the Justice Department has announced the guilty pleas of a total of 11 individuals in connection with the investigation.
ICE-HSI in Houston is conducting the ongoing investigation with assistance from ICE-HSI in Boston and Madrid as well as from IRS - Criminal Investigation. Deputy Chief John Pearson and Assistant U.S. Attorney Robert S. Johnson are prosecuting the case along with Trial Attorneys Jeremy R. Sanders, Sarah E. Edwards and John-Alex Romano of the Criminal Division’s Fraud Section. Assistant U.S. Attorney Kristine Rollinson of the Southern District of Texas is handling the forfeiture aspects of the case.
The Criminal Division’s Office of International Affairs, the Swiss Federal Office of Justice and the Spanish Guardia Civil have provided substantial assistance.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Former Venezuelan Official Pleads Guilty to Money Laundering Charge in Connection with Bribery SchemeRead the Press Release
The former general manager of the procurement subsidiary of Venezuela’s state-owned and state-controlled energy company, Petroleos de Venezuela S.A. (PDVSA), pleaded guilty today for his role in an international money laundering scheme involving bribes paid by the owners of U.S.-based companies to Venezuelan government officials to corruptly secure energy contracts and payment priority on outstanding invoices.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Ryan K. Patrick of the Southern District of Texas and Special Agent in Charge Mark Dawson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations’ (ICE-HSI) Houston Field Office made the announcement.
Cesar David Rincon Godoy (Cesar Rincon), 50, a citizen of Venezuela previously residing in Spain, pleaded guilty today in federal court in Houston to one count of conspiracy to commit money laundering. U.S. District Judge Kenneth M. Hoyt of the Southern District of Texas accepted Cesar Rincon’s plea and imposed a personal money judgment in the amount of $7,033,504.71 against the defendant, who agreed to the entry of an order of forfeiture. Sentencing is scheduled for July 9.
Cesar Rincon was arrested in Spain in October 2017 and subsequently extradited to the United States after a federal grand jury in the Southern District of Texas returned a 20-count indictment against him and Luis Carlos De Leon Perez (De Leon), 41; Nervis Gerardo Villalobos Cardenas (Villalobos), 50; Alejandro Isturiz Chiesa (Isturiz), 33; and Rafael Ernesto Reiter Munoz (Reiter), 39. According to admissions made in connection with Cesar Rincon’s plea, between January 2012 and June 2013, he conspired with De Leon, Villalobos, Isturiz, Reiter and others, all of whom were then-current officials of PDVSA and its subsidiaries or former officials of other Venezuelan government agencies or instrumentalities, to solicit PDVSA vendors for bribes and kickbacks in exchange for providing assistance to those vendors in connection with their PDVSA business. Specifically, Cesar Rincon admitted that he accepted bribes from Roberto Enrique Rincon Fernandez (Roberto Rincon), 57, of The Woodlands, Texas, and Abraham Jose Shiera Bastidas (Shiera), 54, of Coral Gables, Florida, in exchange for taking official acts in his capacity as general manager of PDVSA’s procurement subsidiary in order to assist Roberto Rincon’s and Shiera’s companies, including their U.S.-based companies, in receiving payment priority and receiving additional PDVSA contracts. Cesar Rincon further admitted that he then conspired with Roberto Rincon and Shiera to launder and conceal the proceeds of the bribery scheme through a series of financial transactions, including wire transfers to accounts in the United States and Switzerland held in the names of individuals or entities other than Cesar Rincon. Both Roberto Rincon and Shiera previously pleaded guilty in the Southern District of Texas to charges under the Foreign Corrupt Practices Act (FCPA) for their respective roles in the bribery scheme. They currently await sentencing.
As part of his plea agreement, Cesar Rincon also admitted to soliciting and receiving bribes from other owners of energy companies based in the United States in exchange for his assistance in helping those individuals and their companies win business with PDVSA and obtain payment from PDVSA on outstanding invoices ahead of other PDVSA vendors. In total, Cesar Rincon admitted to conspiring with others to launder at least $7,033,504.71 in proceeds from the various bribery schemes in which he participated.
The charges against De Leon, Villalobos, Isturiz and Reiter remain pending. Each of the four remaining defendants is charged with one count of conspiracy to commit money laundering and with one or more counts of money laundering. De Leon and Villalobos are also each charged with one count of conspiracy to violate the FCPA. De Leon was extradited from Spain on March 9, and was ordered detained pending trial following a detention hearing held on April 10, before U.S. Magistrate Judge Frances H. Stacy of the Southern District of Texas. Villalobos and Reiter remain in Spanish custody pending extradition and Isturiz remains at large.
The charges contained in the indictment are merely accusations, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Cesar Rincon becomes the latest individual to plead guilty as part of a larger, ongoing investigation by the U.S. government into bribery at PDVSA. Including Cesar Rincon, Roberto Rincon, and Shiera, the Justice Department has announced the guilty pleas of a total of 11individuals in connection with the investigation.
ICE-HSI in Houston is conducting the ongoing investigation with assistance from ICE-HSI in Boston and Madrid, as well as from IRS Criminal Investigation. Trial Attorneys Jeremy R. Sanders, Sarah E. Edwards and John-Alex Romano of the Criminal Division’s Fraud Section and Deputy Chief John Pearson and Assistant U.S. Attorney Robert S. Johnson of the Southern District of Texas are prosecuting the case. Assistant U.S. Attorney Kristine Rollinson of the Southern District of Texas is handling the forfeiture aspects of the case.
The Criminal Division’s Office of International Affairs, the Swiss Federal Office of Justice and the Spanish Guardia Civil have provided substantial assistance.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Mexican National Sentenced for Trafficking MethamphetamineRead the Press Release
McALLEN, Texas – A 22-year-old woman from Guadalajara, Mexico, has been ordered to federal prison following her conviction of importing methamphetamine into the country, announced U.S. Attorney Ryan K. Patrick. Yezel Eunice Nevarez-Martell pleaded guilty Aug. 30, 2017.
Today, U.S. District Judge Micaela Alvarez ordered Nevarez to serve 168 months in federal prison. Not a U.S. citizen, Nevarez is expected to face deportation proceedings following the sentence. At the hearing, the court took into consideration that the methamphetamine had a 90% purity level which is commonly referred to as “ice.” In handing down the sentence, Judge Alvarez noted that there are many young people that come before the court, sadly, on a regular basis and also expressed concern with the significant amount of such a significant drug which, once distributed, effects people at all levels of life.
At the time of her guilty plea, Nevarez admitted that on April 2, 2017, she drove a vehicle from Mexico and attempted to enter the United States at the Hidalgo port of entry, knowing the vehicle contained a controlled substance. Upon inspection, Customs and Border Protection (CBP) officers discovered methamphetamine hidden in a false compartment within the rear cargo area of the vehicle. Agents seized 23 packages weighing approximately 22 kilograms of methamphetamine.
Nevarez has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations and CBP conducted the investigation. Assistant U.S. Attorney Linda Requénez prosecuted the case.
Illegal Alien Sentenced to Prison for Unlawfully Being in the CountryRead the Press Release
McALLEN, Texas – A 42-year-old Mexican national has been sentenced to prison for illegally re-entering the country after removal or deportation, announced U.S. Attorney Ryan K. Patrick. A federal jury deliberated for only approximately 30 minutes before finding Candelario Lucio-Garza guilty on Jan. 23, 2018.
Today, U.S. District Judge Micaela Alvarez handed Lucio-Garza a 40-month sentence to be followed by three years of supervision after his release from prison. Not a U.S. citizen, Lucio-Garza is again expected to face deportation proceedings following the sentence. At the hearing, additional evidence was also provided that detailed Lucio-Garza’s three prior convictions for illegal re-entry and that he had also been convicted of attempted murder in 1993. In handing down the sentence, the court noted Lucio-Garza’s prior convictions, the fact that he attempted to re-enter the United States just two weeks after being deported and the 32-month sentence he received for his last illegal re-entry conviction in 2015.
During the trial, law enforcement testified that Lucio-Garza had been apprehended hiding on the Pharr International Bridge just 150 yards south of the Pharr Port of Entry shortly after midnight on Oct. 16, 2017. At that time, he admitted to being a Mexican national. Record checks revealed he had also been previously removed from the United States on three separate occasions and that he had no lawful status to be in the country.
The defense attempted to convince the jury that he had not actually entered the United States because he was still on the international bridge and that it was his intent to seek asylum in the United States even though he was found hiding from law enforcement agents after the bridge was closed and had not attempted to approach the processing center.
The jury did not believe his claims and found him guilty as charged.
Lucio-Garza has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Customs and Border Protection conducted the investigation with the assistance of the Pharr Police Department. Assistant U.S. Attorneys David M. Paxton and Linda Requénez prosecuted the case.
Former Housing Authority Executive Director Sent to PrisonRead the Press Release
McALLEN, Texas ‐ The former director of the La Joya Housing Authority and another man have been ordered to federal prison for a bid rigging scheme, announced U.S. Attorney Ryan K. Patrick. Juan Jose Garza, 50, of La Joya, and Mexican national Armando Jimenez, 53, pleaded guilty to wire fraud May 3, 2017.
Today, U.S. District Judge Ricardo H. Hinojosa ordered Garza to serve 37 months in prison, while Jimenez received an 18-month-prison term. In imposing the sentence, the court ruled Garza abused his position of trust to facilitate the wire fraud scheme, commenting that “the public trusts people in public office to do the right thing.” Judge Hinojosa further noted in regard to Garza “that trust was broken.” Garza will also serve two years of supervised release. Not a U.S. citizen, Jimenez is expected to face deportation proceedings following his sentence.
From 1999 through 2016, Garza was the executive director of the La Joya Housing Authority. From July 2013 through March 2013, Garza and Jimenez engaged in bid rigging for construction contracts with the Alamo and Donna Housing Authorities. They submitted false bids to guarantee Jimenez Construction would be the low bidder and then awarded construction projects. Jimenez then falsely submitted invoices for work he claimed his construction company did, but that had been completed by subcontractors working for Garza.
Garza and Jimenez were permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The Department of Housing and Urban Development - Office of Inspector General and the FBI conducted the investigation. Assistant U.S. Attorney Kristen Rees prosecuted the case.
Meth Trafficker Handed Significant SentenceRead the Press Release
CORPUS CHRISTI, Texas – A 44-year-old Richardson man has been ordered to federal prison following his conviction of possession with intent to distribute methamphetamine, announced U.S. Attorney Ryan K. Patrick. Michael Cipriano pleaded guilty Dec. 18, 2017.
Today, Senior U.S. District Judge John Rainey sentenced Cipriano to 210 months imprisonment followed by five years of supervised release.
On July 26, 2017, law enforcement officers had received information that a vehicle would be travelling from Dallas to deliver methamphetamine to a location in Corpus Christi. As agents were conducting surveillance, Cipriano arrived at the location, at which time officers attempted to conduct a traffic stop of the vehicle. He then quickly fled the location, but Cipriano was quickly apprehended a short distance away without incident.
When officers searched the vehicle, they discovered a large plastic bag that contained a white crystal substance, which tested positive for methamphetamine. Laboratory analysis confirmed the substance had a purity of 97% and contained 967 grams of pure methamphetamine.
Cipriano 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 Drug Enforcement Administration, Texas Department of Public Safety and the Corpus Christi Police Department. Assistant U.S. Attorney Lance Watt is prosecuting the case.
Local Businessman Sentenced for Credit Card Fraud and ID TheftRead the Press Release
CORPUS CHRISTI, Texas – The owner of American Auto Pros in Corpus Christi has been ordered to federal prison after admitting he used numerous credit card accounts belonging to others in order to obtain things of value without authorization, announced U.S. Attorney Ryan K. Patrick. Antonio Arteaga, 38, of Corpus Christi, pleaded guilty Nov. 2, 2017, to one count of credit card fraud and one count of aggravated identity theft.
Today, Senior U.S. District Judge Hilda G. Tagle handed Arteaga a 12-month sentence for the credit card fraud as well as a consecutive 24 months for the identity theft. The total sentence of three years will be immediately followed by an additional three years of supervised release. He was further ordered to pay restitution to his victims. In handing down the sentence, Judge Tagle noted she could put herself in the victims’ shoes, citing one victim that learned of the fraud when her credit card was declined at a gas pump and the ripple effect of bounced checks and missed payments which would follow the victims of his fraud. Judge Tagle went on to explain that Arteaga’s customers relied on his honesty in taking their credit cards as payment and the entire credit card system counts on the honesty of merchants.
Arteaga was arrested Aug. 18, 2017, following an investigation into a series of fraudulent ATM withdrawals in Corpus Christi and surrounding areas. Many of the victims had been customers at Arteaga’s business, American Auto Pros. Authorities executed a search warrant at the business which led to the discovery of a credit card processing pad that was connected to a laptop computer in the office. This allowed Arteaga to illegally capture the account information and PIN numbers of credit and debit cards used there.
During a subsequent search of Arteaga’s home, law enforcement found a magnetic strip encoder that had been used to replace the information on the magnetic strip of gift cards with the compromised credit and debit card numbers. Agents also found numerous altered gift cards with the encoder at Arteaga’s house and additional gift cards illegally re-encoded with victim’s credit card information in Arteaga’s vehicle and wallet.
Agents determined that between Dec. 10, 2016, and Aug. 18, 2017, Arteaga unlawfully used the credit and debit card information of dozens of American Auto Pros customers to withdraw tens of thousands of dollars from his victims’ accounts.
Arteaga 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 Secret Service conducted the investigation with the assistance of the Corpus Christi Police Department. Assistant U.S. Attorney Robert D. Thorpe Jr. is prosecuting the case.
Three Men Arrested on Illegal Firearms ViolationsRead the Press Release
LAREDO, Texas – Three persons alleged to have been involved in engaging in the business of dealing in firearms without a license have made their initial appearances in federal court, announced U.S. Attorney Ryan K. Patrick along with Special Agent in Charge Fred Milanowski of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Special Agent in Charge Shane Folden, of Immigration and Customs Enforcement’s Homeland Security Investigations (HSI).
Authorities arrested Alejandro Rodriguez, 26, Alejandro Hernandez, 27, and Lewis Rodriguez, 28, all of Laredo, Thursday, April 12. Today, they made their appearance in Laredo federal court. They are set for a preliminary examination hearing on April 20, at 10:00 a.m. before U.S. Magistrate Judge Diana Song Quiroga.
According to the criminal complaint, on four separate occasions, federal agents purchased 11 AR-type rifles from the three men. Last week, agents seized another 12 AR-type rifles as part of an undercover operation. The charges allege two of those weapons were fully automatic firearms. None of the firearms had any identifying markings or serial numbers, according to the complaint.
“ATF targets firearms smuggling organizations, because stopping the flow of weapons illegally exported from the United States is a top priority," said Milanowski. “These offenders and their networks must be dismantled, as they remain a serious threat here in the United States.”
“Stopping the flow of weapons illegally exported into Mexico is an urgent priority for HSI,” said Folden. “HSI along with its federal partners will continue to target firearms smuggling organizations and dismantle the networks responsible for supplying these egregious offenders before they fall into the hands of drug cartels which pose a threat here in the United States and abroad.”
If convicted, each faces up to five years imprisonment and a possible $250,000 maximum fine.
ATF and HSI are conducting the investigation with the assistance of Border Patrol, U.S. Marshals Service and the Laredo Police Department. Assistant U.S. Attorney Giselle S. Guerra 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.###
Former Employee Pleads Guilty to Wire FraudRead the Press Release
HOUSTON – A 28-year-old former employee of BP America Inc. has admitted he attempted to extort money from the company, announced U.S. Attorney Ryan K. Patrick. George Koutsostamatis pleaded guilty to one count of wire fraud.
Koutsostamatis, of Chicago, was a BP employee. While employed there, he admitted he sent an email to BP falsely claiming to possess personal information of company employees and their families. He also claimed he had infiltrated BP’s computers and computer network system. He threatened to release the information if he was not paid 125 bitcoins.
U.S. District Judge Sim Lake accepted the plea today and has set sentencing for July 13, 2018. At that time, Koutsostamatis faces up to 20 years in federal prison and a possible $250,000 maximum fine. He was permitted to remain on bond pending that hearing.
The FBI Houston Cyber Task Force investigated this case. The FBI Houston Cyber Task Force is a multi-agency task force responsible for investigating, pursuing and defeating cyber criminals who seek to exploit our nation’s most significant computer systems, networks and critical infrastructure. The Houston field office of the FBI led the investigation with assistance from U.S. Attorney’s Offices in Houston and Chicago, FBI – Chicago field office and the National Crime Agency in the United Kingdom. Assistant U.S. Attorney Rodolfo Ramirez is prosecuting the case.
Webster Man Sent to Prison for Receiving Child Pornography VideosRead the Press Release
HOUSTON – A 31-year old resident of Webster has been ordered to prison following his conviction on one count of receipt of child pornography and one count of possession of child pornography, announced U.S. Attorney Ryan K. Patrick. Jake Nicholas Luera pleaded guilty June 27, 2017.
Today, U.S. District Judge David Hittner ordered him to prison for a total of 136 months after which he must immediately serve 15 years of supervised release, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. He will also be ordered to register as a sex offender.
Luera came to the attention of law enforcement following an investigation dubbed Operation Back to School in August 2015 which targeted the online solicitation of minors. During the operation, Luera engaged in online chats with an undercover officer posing as a 15-year-old female and drove to a location where he believed he would make sexual contact with her.
Following his arrest, authorities searched his home in Webster. They discovered and seized various items of computer media which a forensic analysis revealed more than 4,000 images and 75 videos of child pornography involving young children engaged in sexually explicit conduct. These videos included children under the age of 12 involved in sadistic conduct, including bondage.
At the time of his plea, Luera admitted he received and saved the images and videos on multiple storage devices.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Houston Metro Internet Crimes Against Children Task Force conducted the investigation at the Pearland Police Department in conjunction with Immigration and Customs Enforcement’s Homeland Security Investigations.
This case, prosecuted by Assistant U.S. Attorney Sherri L. Zack, 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."
The Woodlands Retina Center Settles Claim to Ensure Accessibility for People with DisabilitiesRead the Press Release
HOUSTON - The U.S. Attorney’s Office has resolved a claim that The Woodlands Retina Center violated the American with Disabilities Act (ADA) when it refused to treat a disabled patient because he was accompanied by a service animal, announced U.S. Attorney Ryan K. Patrick.
The United States initiated an investigation after receiving a complaint that alleged The Woodlands Retina Center discriminated against people with disabilities and denied equal access to medical services to people with disabilities who use service animals. The individual alleged The Woodlands Retina Center told him they had a “no dog policy” and refused to treat him because a service animal accompanied him during an eye appointment.
Under the ADA, persons with disabilities who are accompanied by their service animals shall be afforded the opportunity to participate in or benefit from the goods, services, facilities, privileges, advantages or accommodations equal to that afforded to other individuals. The government is authorized to commence a civil action when it is believed discrimination exists, seeking damages and full compliance with the ADA including requiring the owners and operators of places of public accommodations to make reasonable modifications to policies, practices and procedures.
Dr. Wael Abdelghani owns The Woodlands Retina Center, which is a professional office and a place of public accommodation under the ADA.
“This settlement resolves an allegation of discrimination based on disability,” said Patrick. “The announcement today should make clear that our medical professionals must provide reasonable accommodations to people with disabilities and that every member of our society is entitled to equal access to medical services.”
The settlement agreement requires The Woodlands Retina Center to adopt a service animal policy that will ensure it accepts and treats disabled patients accompanied by service animals.
The settlement agreement also requires The Woodlands Retina Center to pay the individual who made the claim compensatory damages.
Finally, the settlement agreement provides that the U.S. Attorney’s Office monitors the center to ensure it is meeting its obligations under the ADA.
Assistant U.S. Attorney Keith Edward Wyatt and Paralegal Specialist Raymond Babauta handled this matter on behalf of the U.S. Attorney’s Office.
Registered Sex Offender Heads to Prison…AgainRead the Press Release
HOUSTON – A 45-year-old Porter man has again been sent to prison, this time for three federal charges to include distribution, receipt and possession of child pornography, announced U.S. Attorney Ryan K. Patrick. Eric Furzland is a sex offender who has been required to register since his conviction for indecency with a child in 1997 in Harris County. He pleaded guilty Oct. 12, 2017.
Today, U.S. District Judge Alfred H. Bennett sentenced Furzland to a total of 288 months in federal prison. He will also serve 20 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. Furzland will also again be ordered to register as a sex offender.
Authorities believed Furzland was uploading and storing child pornography into a virtual storage account. He had been using a variety of online applications to chat with others about child pornography and trade materials. He later posted such materials to a cloud storage service and made the link to his account available to at least one other person.
Law enforcement executed a search warrant at his residence, at which time they seized computer media and cellular phones. Forensic analysis of the phone, computer media and virtual storage accounts revealed 300 child pornography images and 2000 child pornography videos.
At a detention hearing held shortly after his arrest in April 2017, Furzland was found to be a flight risk and danger to the community. He has been in custody since that time where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI 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."
Judge Sends Sugar Land Resident to Prison for Child Pornography ChargesRead the Press Release
HOUSTON – A federal judge has found a 44-year-old legal permanent resident who lived in Sugar Land guilty of receipt, access with intent to view and possession of child pornography, announced U.S. Attorney Ryan K. Patrick. U.S. District Judge Alfred H. Bennett found Jacinto Lopez-Toledo guilty on Dec. 12, 2017, following two days of trial.
Today, Judge Bennett sentenced Lopez-Toledo to 120 months in prison to be immediately followed by 10 years of supervised release during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. He will also be ordered to register as a sex offender. The court also imposed a $15,000 fine and a $10,000 special assessment for the Justice for Victims of Trafficking Act.
Lopez-Toledo came to the attention of law enforcement after investigators found evidence that he was accessing files from a website known to contain child pornography. A search warrant was executed on his residence on Dec. 1, 2015, at which time investigators seized two desktop computers, a laptop computer and an external hard drive.
The forensic examination of the seized devices revealed Lopez-Toledo had 50,216 images and 941 videos of child pornography. These images and videos included children under the age of 12, bondage and acts of violence. Some of the images are of known victims as identified through the National Center for Missing and Exploited Children.
At trial, the court found Lopez-Toledo had an additional 527,844 images and 969 videos which appeared to be child pornography but could not be confirmed as involving a minor. The court also heard that Lopez-Toledo had been collecting and viewing child pornography for several years, dating back to as early as 2003.
Lopez-Toledo has previously admitted he would view and download child pornography from the internet and also from file sharing networks. Prior to trial, he argued those statements should be suppressed as well as the original search warrant which started the overall investigation.
The judge ultimately found him guilty as charged.
Previously released on bond, Toledo-Lopez was ordered into custody following the verdict where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI and the Pearland Police Department conducted the investigation with the assistance of the Sugar Land Police Department and Immigration and Customs Enforcement’s Homeland Security Investigations. Assistant U.S. Attorneys Julie N. Searle and Kimberly Leo prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Houston Jury Convicts Former U.S. CongressmanRead the Press Release
HOUSTON – A federal jury convicted former U.S. Representative Stephen E. Stockman for orchestrating a scheme to steal hundreds of thousands of dollars from charitable foundations and the individuals who ran those foundations to illegally finance Stockman’s campaigns for public office and to pay for his and others’ personal expenses. U.S. Attorney Ryan Patrick. Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Assistant Director in Charge Nancy McNamara of the FBI's Washington Field Office and Special Agent in Charge D. Richard Goss of IRS-Criminal Investigation’s (CI) Houston Field Office made the announcement.
Stockman, 60, of Clear Lake, was convicted of seven counts of mail and wire fraud, one count of conspiracy to make conduit campaign contributions and false statements to the Federal Election Commission (FEC), one count of making coordinated excessive campaign contributions, two counts of making false statements to the FEC, 11 counts of money laundering and one count of filing a false tax return. Thomas Dodd, 38, of the Houston area, a former special assistant in Stockman’s congressional office, and Jason Posey, 46, formerly of Houston, a former Stockman congressional staffer, previously pleaded guilty to their involvement in the scheme.
“This case was a fantastic collaboration between the Southern District of Texas and the Department of Justice Criminal Division,” said Patrick. When public officials use their office to defraud donors and violate federal law, we will hold them accountable. Corrupt officials like former congressman Stockman make it harder for the honest ones to do their jobs.”
“Stephen Stockman abused his position as United States Congressman to defraud charitable donors and then used the proceeds of his crimes to corrupt the election process and make a range of impermissible personal expenditures,” said Cronan. “The Criminal Division is committed to preserving the public’s confidence in our government by investigating and prosecuting corrupt public officials. We also will continue to address the threat that illegal coordinated campaign contributions pose to the integrity of federal elections, and aggressively pursue these offenses at every appropriate opportunity.”
“Former Representative Stockman used his position as a Member of Congress to fraudulently solicit charitable donations for the purpose of keeping himself in public office,” said McNamara. “Today’s verdict shows that no one is above the law and the FBI and our partners will thoroughly investigate all allegation of violations of federal election system.”
“The integrity of our political system is paramount to maintaining our way of life,” said Goss. “IRS-CI Agents along with the assistant of our federal partners unraveled a scheme in which Stockman diverted considerable funds intended for charitable organizations for his own purposes that included funding his campaign. This type of behavior undermines our democracy and cannot be tolerated.”
According to the evidence presented at trial, from May 2010 to October 2014, Stockman solicited and obtained approximately $1.25 million in donations based on false pretenses. Specifically, in 2010, Stockman diverted a significant portion of $285,000 in charitable donations to pay for his and Dodd’s own personal expenses and to further Stockman’s own interests. The evidence at trial established that in 2011 and 2012, Stockman and Dodd received an additional $165,000 in charitable donations, much of which Stockman used to finance his 2012 congressional campaign.
According to the evidence at trial, shortly after Stockman took office in the U.S. House of Representatives in 2013, he and Dodd used the name of a nonprofit entity to solicit and receive a $350,000 charitable donation. Stockman used this donation for a variety of personal and campaign expenses, including illegal conduit campaign contributions, a covert surveillance project targeting a perceived political opponent and payments associated with Stockman’s U.S. Senate campaign in early 2014.
Trial evidence also demonstrated that in connection with Stockman’s Senate campaign, Posey used a nonprofit entity to secure a $450,571 donation in order to fund a purported independent expenditure for a mass-mailing project attacking Stockman’s opponent. In reality, Stockman directed and supervised the independent expenditure. Only approximately half of the donation was spent on the mail campaign, and Posey used a portion of the unspent balance to pay for expenses associated with Stockman’s Senate campaign and to fund personal expenses.
Stockman was taken into custody following the return of the verdict.
Sentencing has been set for Aug. 17, 2018. At that time, he faces up to 20 years for each of the mail and wire fraud charges, five years for the making coordinated campaign contributions, five years for each conviction of making false statements, another 10 years for each of the money laundering counts and up to three years for filing a false tax return.
The FBI and IRS-CI conducted the investigation. Assistant U.S. Attorney Melissa Annis of the Southern District of Texas and Trial Attorneys Ryan J. Ellersick and Robert J. Heberle of the Criminal Division’s Public Integrity Section are prosecuting the case.
Former U.S. Congressman Convicted of Mail and Wire Fraud, Campaign Finance Violations, Money Laundering and Filing a False Tax ReturnRead the Press Release
A federal jury convicted former U.S. Representative Stephen E. Stockman for orchestrating a scheme to steal hundreds of thousands of dollars from charitable foundations and the individuals who ran those foundations to illegally finance Stockman’s campaigns for public office and to pay for his and others’ personal expenses. Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Ryan K. Patrick of the Southern District of Texas, Assistant Director in Charge Nancy McNamara of the FBI's Washington Field Office and Special Agent in Charge D. Richard Goss of Internal Revenue Service-Criminal Investigation’s (IRS-CI) Houston Field Office made the announcement.
Stockman, 61, of Clear Lake, Texas, was convicted of seven counts of mail and wire fraud, one count of conspiracy to make conduit campaign contributions and false statements to the Federal Election Commission (FEC), one count of making coordinated excessive campaign contributions, two counts of making false statements to the FEC, 11 counts of money laundering and one count of filing a false tax return. Thomas Dodd, 38, of the Houston, Texas area, a former special assistant in Stockman’s congressional office, and Jason Posey, 46, formerly of Houston, a former Stockman congressional staffer, previously pleaded guilty to their involvement in the scheme.
“Stephen Stockman abused his position as United States Congressman to defraud charitable donors and then used the proceeds of his crimes to corrupt the election process and make a range of impermissible personal expenditures,” said Acting Assistant Attorney General Cronan. “The Criminal Division is committed to preserving the public’s confidence in our government by investigating and prosecuting corrupt public officials. We also will continue to address the threat that illegal coordinated campaign contributions pose to the integrity of federal elections, and aggressively pursue these offenses at every appropriate opportunity.”
“This case was a fantastic collaboration between the Southern District of Texas and the Department of Justice’s Criminal Division,” said U.S. Attorney Patrick. “When public officials use their office to defraud donors and violate federal law, we will hold them accountable. Corrupt officials like former congressman Stockman make it harder for the honest ones to do their jobs.”
“Former Representative Stockman used his position as a Member of Congress to fraudulently solicit charitable donations for the purpose of keeping himself in public office,” said Assistant Director McNamara. “Today’s verdict shows that no one is above the law and the FBI and our partners will thoroughly investigate all allegation of violations of federal election system.”
“The integrity of our political system is paramount to maintaining our way of life,” said Special Agent in Charge Goss. “IRS-CI Agents along with the assistant of our Federal partners unraveled a scheme in which Stockman diverted considerable funds intended for charitable organizations for his own purposes that included funding his campaign.” This type of behavior undermines our democracy and cannot be tolerated.”
According to the evidence presented at trial, from May 2010 to October 2014, Stockman solicited and obtained approximately $1.25 million in donations based on false pretenses. Specifically, in 2010, Stockman diverted a significant portion of $285,000 in charitable donations to pay for his and Dodd’s own personal expenses and to further Stockman’s own interests. The evidence at trial established that in 2011 and 2012, Stockman and Dodd received an additional $165,000 in charitable donations, much of which Stockman used to finance his 2012 congressional campaign.
According to the evidence at trial, shortly after Stockman took office in the U.S. House of Representatives in 2013, he and Dodd used the name of a nonprofit entity to solicit and receive a $350,000 charitable donation. Stockman used this donation for a variety of personal and campaign expenses, including illegal conduit campaign contributions, a covert surveillance project targeting a perceived political opponent and payments associated with Stockman’s U.S. Senate campaign in early 2014.
Trial evidence also demonstrated that in connection with Stockman’s Senate campaign, Posey used a nonprofit entity to secure a $450,571 donation in order to fund a purported independent expenditure for a mass-mailing project attacking Stockman’s opponent. In reality, the independent expenditure was directed and supervised by Stockman. Only approximately half of the donation was spent on the mail campaign, and Posey used a portion of the unspent balance to pay for expenses associated with Stockman’s Senate campaign and to fund personal expenses.
Stockman was taken into custody following the return of the verdict. Sentencing has been set for Aug. 17.
The FBI and IRS-CI conducted the investigation. Assistant U.S. Attorney Melissa Annis of the Southern District of Texas and Trial Attorneys Ryan J. Ellersick and Robert J. Heberle of the Criminal Division’s Public Integrity Section are prosecuting the case.
Diagnostic Company Owner Sentenced for Kickbacks, Health Care Fraud and Money LaunderingRead the Press Release
HOUSTON – The owner of multiple diagnostic businesses and a durable medical equipment company has been ordered to federal prison in relation to the Team Work Ready (TMR) health care fraud conspiracy, announced U.S. Attorney Ryan K. Patrick. Mark Edward Farias, 48, of Houston pleaded guilty April 17, 2017, admitting to a conspiracy to pay kickbacks, health care fraud as well as money laundering.
Today, U.S. District Judge Gray Miller handed Farias a 68-month sentence to be immediately followed by three years of supervised release. At the hearing, Judge Miller denied Farias’ request for probation and considered the duration of his criminal activity, the repetitive nature of the crime and the $4,122,980 his companies billed. The court also ordered Farias to pay $2,790,704 in restitution to the Department of Labor Office of Worker’s Compensation who administers the Federal Employees Compensation Act (FECA) health insurance program.
Farias was the owner of a durable medical equipment business known as AMR Medical Supply as well as three medical diagnostic businesses - Winlock Medical Surgical LLC, ARC Diagnostics LLC and Tessla Diagnostics LLC - located in Texas and Louisiana. As part of his guilty plea, Farias admitted he paid the owner and CEO of TWR – Jeffrey Eugene Rose, 55, of Houston - at least $436,213.54 in kickbacks for access to at least 419 patients from TWR clinics in Texas and Louisiana. Farias admitted he attempted to hide and conceal the kickback payments by indicating on the payments that they were for marketing. Farias did not receive any marketing services from TWR, just patients covered by the FECA program. In addition to engaging in kickbacks, Farias admitted he also committed health care fraud by submitting up-coded claims for the kickback patients, including claims for diagnostic testing that were not medically necessary, and for diagnostic reports that were not produced. Farias also admitted to engaging in money laundering with the criminal proceeds he received from FECA.
Rose was convicted of conspiracy, health care fraud, wire fraud and money laundering in October 2016 following a three-week trial. Also convicted were chief financial officer Pamela Annette Rose, 55, of Houston, along with the clinic’s vice president of operations Frankie Lee Sanders, 55, also of Houston. Team Work Ready defendants Pamela Rose and Sanders were sentenced in July of last year to 120 and 300 months, respectively. Jeffrey Rose is scheduled for sentencing on June 1, 2018, before U.S. District Judge Ewing Werlein Jr.
Farias was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
U.S. Postal Service - Office of Inspector General (OIG), Department of Labor – OIG, IRS - Criminal Investigation, Department of Veterans Affairs - OIG and Department of Homeland Security – OIG conducted the joint investigation. Assistant U.S. Attorney Julie Redlinger is prosecuting the case.
Pettus Man Gets More Than 30 Years for Online Solicitation of MinorsRead the Press Release
CORPUS CHRISTI, Texas - A 55-year-old resident of Pettus has been ordered to federal prison following his admission that he attempted to meet two underage boys for the purpose of sex, announced U.S. Attorney Ryan K. Patrick. Darrell Freeze pleaded guilty Oct. 30, 2017, to one count of online solicitation of a minor.
At a hearing late yesterday, Senior U.S. District Judge Janis Graham Jack sentenced Freeze to 380 months in prison. Additional information was also presented, including testimony from a federal agent that an individual in Arizona reported Freeze had sexually assaulted him when he was a minor. Freeze will also serve 25 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. In handing down the sentence, Judge Jack noted freeze had not shown any remorse for his victims.
Freeze was communicating with a person he believed was the mother of two minor children - ages 14 and 11. He made arrangements to meet and engage in sexual contact with the minors, but was apprehended as he arrived at the designated meeting place. Freeze admitted to authorities he had sent messages indicating his intention to engage in sexual acts with the children. He was also in possession of condoms and candy he brought for the children.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI, Immigration and Customs Enforcement’s Homeland Security Investigations, Corpus Christi Police Department—Internet Crimes Against Children Task Force and the Nueces County District Attorney’s Office conducted the investigation as part of Operation Hidden Predator.
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."
Corpus Man Sent to Federal Prison for Online Solicitation of MinorsRead the Press Release
CORPUS CHRISTI, Texas – A 42-year-old resident of Corpus Christi has been ordered to prison following his conviction of two counts of online solicitation of minors and two counts of transfer of obscene material to minors, announced U.S. Attorney Ryan K. Patrick. A federal jury deliberated for approximately 20 minutes following less than two days of trial before convicting Spencer Salcedo on Jan. 9, 2018.
Today, U.S. District Judge Nelva Gonzales Ramos handed Salcedo a total 168-month sentence. Salcedo was further ordered to 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. Salcedo will also be ordered to register as a sex offender.
According to the evidence presented at trial, Salcedo was communicating with a person he believed was the mother of two minor female children - ages 14 and 11. In reality, he was actually talking to an undercover police officer. During the course of the communications, he made arrangements to meet and engage in sexual activity with the mother’s children. Salcedo also sent sexually explicit photographs through text messages intended for the children.
He was apprehended as he arrived at the designated meeting place. At the time of his arrest, Salcedo had condoms with him and candy for the children.
At trial, the jury heard from an agent who testified that Salcedo gave a conflicting statement as to why he showed up to the meeting location.
Previously released on bond, Salcedo was remanded to custody following the verdict where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations and the Corpus Christi Police Department - Internet Crimes Against Children Task Force conducted the investigation as part of Operation Hidden Predator, a joint investigation targeting individuals involved in online solicitation of minors.
Assistant U.S. Attorney Hugo R. Martinez and Jeff S. Miller prosecuted the case 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."
Truck Driver Sentenced for Alien Smuggling Resulting in DeathRead the Press Release
CORPUS CHRISTI, Texas – A 45-year-old Weslaco man has been ordered to federal prison following his conviction of human smuggling which resulted in the death of an undocumented alien trapped inside a toolbox, announced U.S. Attorney Ryan K. Patrick.
Juan Enrique Escobedo-Moreno pleaded guilty Jan. 5, 2018, admitting he smuggled the victim in his tractor trailer. The victim died after being trapped in a toolbox measuring only 30 inches long, 26 inches wide and 16 inches deep.
Today, U.S. District Judge Janis Graham Jack handed Escobedo-Moreno a 210-month sentence to be immediately followed by three years of supervised release. At the hearing, additional evidence was presented detailing the defendant’s previous alien smuggling apprehensions and describing the egregious conditions under which Escobedo-Moreno transported the aliens in this case leading to the death of one of the aliens. In handing down the sentence of more than 17 years, the court noted Escobedo-Moreno exhibited “a complete disregard for human life."
According to the facts presented to the court at the time of the plea, Escobedo-Moreno drove his 2002 Kenworth tractor-trailer into the primary inspection area of the Falfurrias Border Patrol checkpoint shortly after midnight on Oct. 3, 2017. He claimed to be a hauling a load of watermelons from Edinburg to Houston and that no one else was with him. Upon inspection, authorities discovered one Mexican national hidden inside a small closet directly behind the driver’s seat. Escobedo-Moreno and that undocumented alien made no mention of anyone else in the vehicle.
Authorities later discovered the remains of an individual concealed in a tool compartment under the sleeper berth. When in the down position, the bed was secured with an exterior latch that would be inaccessible from inside the tool storage compartment under the bed and prevent anyone from freeing themselves. According to information presented in court, Escobedo-Moreno specifically instructed the victim to pull the bed down hard to make sure it would latch and stay closed.
Escobedo-Moreno remains in custody pending transfer to a Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations and Border Patrol conducted the investigation with the assistance of the Brooks County Sheriff’s Office. Assistant U.S. Attorney Robert D. Thorpe Jr. is prosecuting the case.
Local Man Sent to Prison for Distributing Sexual-Explicit Images of InfantsRead the Press Release
CORPUS CHRISTI, Texas - A 28-year-old Corpus Christi man has been ordered to federal prison after admitting to distribution of child pornography, announced U.S. Ryan K. Patrick. Randy Michael Ramirez pleaded guilty Jan. 29, 2018.
Today, Senior U.S. District Judge Janis Graham Jack sentenced Ramirez to 188 months in federal prison. Additional information was also presented today, including evidence that months before his arrest, Ramirez was communicating with an individual and was attempting to pay the individual to have sexual intercourse with an infant. Ramirez will serve the rest of his life on supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. He will also be ordered to register as a sex offender.
In May 2016, authorities discovered Ramirez was communicating with an undercover detective in Dallas and eventually sent a link which contained 76 videos of child pornography. During the communications, Ramirez told the undercover detective that he had access to a nine-year-old female and a 10-month-old infant that he would offer for sex. Law enforcement was able to locate Ramirez and determined he did not have access to any children. Authorities seized a cellular telephone from Ramirez’s residence which resulted in the discovery of more than 80 images and 12 videos of child pornography. Many of the videos involved sexually explicit conduct with children as young as infants.
At the time of his plea, the court heard that upon his arrest, Ramirez attempted to hide a cellular telephone. Law enforcement was able to locate the device and a forensic analysis revealed an additional 120 images of child pornography.
Ramirez has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of 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."
Armed Career Criminal Sent to Prison on Firearms ChargeRead the Press Release
CORPUS CHRISTI, Texas - A local man has been ordered to federal prison following his conviction of illegal possession of a firearm, announced U.S. Attorney Ryan K. Patrick. Adam Alfredo Flores, 36, of Corpus Christi, pleaded guilty Jan. 4, 2018, to felon in possession of a firearm.
Today, Senior U.S. District Judge Janis Graham Jack sentenced Flores to 180 months imprisonment to be immediately followed by three years of supervised release. Flores had previously been convicted in state court for numerous felonies. In handing down the sentence today, the court determined him to be an armed career criminal.
In July 2017, officers with the Corpus Christi Police Department (CCPD) conducted a traffic stop on a vehicle for disregarding a stop sign. Flores was identified as the front seat passenger, at which time authorities discovered a loaded .22 caliber handgun underneath his seat. Flores, who had a previous felony conviction, is prohibited from possessing firearms and ammunition per federal law.
He was taken into custody as a part of Operation City Shield, a coordinated federal, state and local law enforcement effort to identify violent offenders, stop gun violence and protect the community.
In custody since his arrest, Flores will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the CCPD conducted the investigation. Assistant U.S. Attorney Lance Watt is prosecuting the case.
Donna Man Sentenced for Alien SmugglingRead the Press Release
McALLEN, Texas – A 19-year-old resident of Donna has been ordered to federal prison for five years as a result of his conviction for conspiracy to transport undocumented aliens, announced U.S. Attorney Ryan K. Patrick. Jesse Zuniga pleaded guilty on Dec. 19, 2017.
Today, U.S. District Judge Randy Crane sentenced Zuniga to 60 months imprisonment to be immediately followed by three years of supervised release. The sentence was enhanced as the court took into consideration Zuniga’s role in the conspiracy, his use of minors to transport undocumented aliens and that fact Zuniga was heavily involved in overseeing the transportation cell of the alien smuggling organization. The court also considered the total number of aliens transported during the conspiracy, that a vehicular accident occurred during one of the transports which resulted in multiple aliens being sent to the hospital for minor injuries and that Zuniga had been arrested several times for transporting aliens when he too was a minor, among other factors.
Zuniga was involved in coordinating at least two separate alien transporting events from April 23, 2017, to Oct. 21, 2017.
On or about April 23, 2017, Border Patrol agents were conducting surveillance in the Donna area when they observed individuals emerge from the Rio Grande riverbank and load into a vehicle. After the vehicle departed from the area, agents attempted to conduct a traffic stop. The vehicle failed to stop and led agents on a pursuit that lasted approximately five miles and reached speeds of 100mph, which ended when the vehicle rolled over into an open field. Agents apprehended 16 undocumented aliens who were passengers in the vehicle, which included a three-year-old child. Five of the aliens were transported to a local hospital where they were treated for minor injuries.
On the second occasion, agents observed two vehicles driving in tandem near the riverbank of the Rio Grande near Donna. At the location, multiple subjects emerged from the nearby area and loaded into both vehicles, which then drove in a northbound direction away from the river. Shortly thereafter, agents stopped both vehicles. Between both vehicles, agents apprehended a total of 10 undocumented aliens who were passengers in the vehicles.
Zuniga has been and will remain in federal custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Jacqueline Christine Medrano, 28, of McAllen, pleaded guilty for her role in the April event and is set for sentencing June 18, 2018. Darryin Nicole Uribe, 19, of San Juan, and Rey Angel Silguero, 19, of Alamo, were charged for their roles in the October smuggling event Both have pleaded guilty and are set for sentencing April 17, 2018.
Immigration and Customs Enforcement’s Homeland Security Investigations and Border Patrol conducted the investigation. Assistant U.S. Attorney Linda Requénez prosecuted the case.
Kansas Man Pleads Guilty to Charges Related to the Sexual Exploitation of Children in Southeast AsiaRead the Press Release
A 71-year-old Kansas native who was residing in Panama pleaded guilty today to use of sexually explicit depictions of a minor for importation into the United States, announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and U.S. Attorney Ryan K. Patrick of the Southern District of Texas.
Jebediah Dishman, of Fredonia, Kansas, pleaded guilty to an information charging him with use of sexually explicit depictions of a minor for importation into the United States before U.S. District Judge Ewing Werlein Jr. of the Southern District of Texas. Sentencing is set for July 6.
Dishman was arrested in Houston on Nov. 8, 2016, on a criminal complaint. On Feb. 1, 2017, a grand jury in the U.S. District Court for the Southern District of Texas indicted him on one count each of engaging in illicit sexual conduct with a minor in a foreign country, production of child pornography, sex trafficking of children, and obtaining custody and control of a minor for the purpose of producing sexually explicit visual depictions of the minor.
According to admissions made in conjunction with a plea agreement, in September 2014, Dishman began an approximately six-month trip to several countries in Southeast Asia. During his trip to Indonesia, another tourist observed Dishman engaging in suspicious interactions with minors, masturbating while watching minors, and using a tablet to take photographs of a three-year-old German child. The tourist confronted Dishman, seized his tablet, and turned it over to local authorities. U.S. authorities later reviewed the tablet pursuant to a search warrant and discovered sexually explicit images of minors, including of the German child, as well as Internet searches indicating an interest in the sex trafficking of minors in Southeast Asia.
The FBI is investigating this case with the cooperation of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. Trial Attorneys James E. Burke IV and William M. Grady of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Sherri Zack of the Southern District of Texas are prosecuting the case. Assistant U.S. Attorney Elly Peirson of the Central District of Illinois, previously on detail at CEOS, also served as a vital member of the prosecution team at earlier stages of the litigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
United States Obtains $30.5 Million Fraud Judgment Against Texas-Based Lab Services Company and CEORead the Press Release
HOUSTON – A federal judge has ruled that BestCare Laboratory Services LLC and its founder and CEO Karim Maghareh defrauded Medicare by billing for thousands of miles that were not actually travelled, announced U.S. Attorney Ryan Patrick.
U.S. District Judge Lynn Hughes of the Southern District of Texas awarded the United States $30,571.635 in damages from the Webster, Texas - based company. BestCare serves nursing homes throughout Texas, including San Antonio, Dallas, Austin, Waco and El Paso.
Dr. Richard Drummond discovered the fraud after hiring a former BestCare employee and learning of their billing practices. Drummond filed suit under the False Claims Act which allows private citizens who know of fraud to file suit on behalf of the United States.
As detailed in that lawsuit, Medicare compensates laboratories which serve nursing home patients approximately a dollar per mile for technician travel. The travel must be for the purpose of collecting a specimen from a home-bound or nursing home-bound patient, not for the purpose of picking up and transporting specimens already collected. The miles are supposed to be pro-rated among the number of patients from whom they are collected.
The court found that BestCare not only failed to prorate miles, but shipped batches of specimens by air freight to Houston at a cost of approximately $100 per batch then billed Medicare for the round-trip distance between the nursing home and the lab in Webster.
The court found BestCare billed Medicare for $10.1 million in claims for miles which no lab tech traveled. The False Claims Act mandates trebling of the damages, resulting in a judgment of $30.5 million.
The FBI, U.S. Department of Health and Human Services – Office of Inspector General investigated the case along with the U.S. Attorney’s Office and Civil Division of the U.S. Department of Justice. Assistant U.S. Attorneys Michelle Zingaro and Daniel David Hu and Trial Attorney Richard Nicholson handled the matter.