Southern District of Texas
Press releases recorded for this federal judicial district.
Justice Department Files Lawsuit Against City of Houston for Sex Discrimination and RetaliationRead the Press Release
HOUSTON – The Justice Department has filed a lawsuit against the City of Houston alleging the Houston Fire Department (HFD) discriminated against two female firefighters on the basis of sex in violation of Title VII of the Civil Rights Act of 1964, announced U.S. Attorney Ryan K. Patrick and Acting Assistant Attorney General John Gore of the Civil Rights Division. Title VII is a federal statute that prohibits employment discrimination on the basis of sex, race, color, national origin and religion.
The lawsuit, filed in the Southern District of Texas, alleges that Jane Draycott and Paula Keyes were subjected to a hostile work environment based on sex when they were employed as firefighters at HFD’s Station 54. According to the complaint, HFD’s hostile work environment included males urinating on the walls, floors and sinks of the women’s bathroom and dormitory, disconnecting the cold water to scald the women while they were showering and deactivating the female dormitory’s announcement speakers so the women could not respond to emergency calls. The complaint further alleges the conduct culminated in death threats and vulgar slurs written on the walls of their work and living spaces at Station 54 and on their personal possessions. This conduct continued despite at least nine complaints made to management, according to the allegations.
The lawsuit further alleges that HFD retaliated against Draycott in response to her complaints by permitting her co-workers to publicly disparage her in an attempt to prevent her from returning to work at Station 54 and that she was forced into early retirement because of her intolerable working conditions.
Other female firefighters who had previously worked at Station 54 allegedly made similar complaints to HFD about sex-based discrimination prior to Draycott and Keyes working there. According to the complaint, HFD did not take meaningful steps to stop the discrimination.
Through this lawsuit, the United States seeks to require HFD to develop and implement policies that would prevent sex discrimination and retaliation. The United States also seeks monetary relief for Draycott and Keyes to compensate them for the damages they sustained as a result of the alleged discrimination.
“No employee should be subjected to a hostile work environment based on their sex,” said Patrick. “We will aggressively protect employees who are victims of sex discrimination and retaliation and pursue employers who violate the law.”
“Far too often, women are targeted and harassed in the workplace because of their sex,” said Gore. “Employees have the right to work in an environment that is free from sex discrimination and retaliation. The Civil Rights Division—under the newly created Sexual Harassment in the Workplace Initiative—will continue to work vigorously to protect employees from these workplace abuses.”
Draycott and Keyes each filed charges of discrimination with the Equal Employment Opportunity Commission (EEOC). The EEOC’s Houston Office investigated the charges and made reasonable cause findings. After unsuccessful conciliation efforts, the EEOC referred the charges to the Justice Department.
The Civil Rights Division’s Employment Litigation Section brought the case in collaboration with the U.S. Attorneys’ Office for the Southern District of Texas.
This lawsuit is the first of a new initiative that the Department of Justice announced today - the Sexual Harassment in the Workplace Initiative - which is aimed at combatting sexual harassment and sex-based harassment in the public sector workplace. It is the second initiative created under the leadership of Attorney General Jeff Sessions to combat sexual harassment. The first initiative - the Sexual Harassment in Housing Initiative - was announced in October 2017 to fight sexual harassment in housing.
More information about Title VII and other federal employment laws is available on the Civil Rights Division’s website at www.justice.gov/crt.
Jury Convicts Woman of Defrauding Federal Program Intended to Improve Air QualityRead the Press Release
HOUSTON – A 45-year-old woman has been convicted of charges related to defrauding the Federal Highway Administration Congestion mitigation Air Quality and Surface Transportation Program (FHWA-CMAQ), announced U.S. Attorney Ryan K. Patrick along with Special Agent in Charge Joseph Zschiesche of the Department of Transportation - Office of Inspector General (DOT-OIG). The jury deliberated for less than two hours following a two-day day trial before convicting Shonda Renee Stubblefield of all the counts in the indictment - theft of public money, mail fraud, wire fraud, money laundering and aggravated identity theft.
The jury found that Stubblefield, the owner of World Corporation Inc. (WCI)., stole $125,659.90 from the Department of Transportation (DOT) CMAQ program funded by the Federal Highway Administration (FHWA).
The CMAQ Program provides money to reduce traffic congestion and thereby reduce air pollution in certain areas. The jury heard that Stubblefield stole the money by falsely and fraudulently representing to Houston Galveston Area Counsel (HGAC) that she had hundreds of employees working at WCI who participated in a telework program designed to reduce air-pollution.
The United States proved through documents and 25 witnesses that Stubblefield created a fake business list, fake bank records, fake income and earnings statements and other false WCI business records including employee timesheets, invoices and match documents. The testimony included that of an individual whose identification information Stubblefield stole and used to create a fake $18,100 check that was submitted to the government to further the theft. The evidence and testimony revealed Stubblefield created at least 500 fake and fictitious WCI employee profiles that included fake names, addresses and email accounts.
The defense attempted to convince the jury that Stubblefield was not the person who engaged in the criminal activity, despite the fact that her name was on virtually all WCI business records, at least four witnesses identified her and the money trail lead directly to Stubblefield’s bank account.
“These cases illustrate how agency works tirelessly against individuals who defraud hardworking taxpayers and steal money intended to reduce traffic congestion and improve the air quality in Texas,” said Zschiesche.
U.S. District Judge Alfred Bennett presided over the trial and will sentencing at a later date. At the time of her sentencing, Stubblefield faces up to 10 years in prison for theft of public money, 20 years for mail fraud and wire fraud, 10 years for money laundering as well as a mandatory two years for the identity theft which must be served consecutively to any other prison term imposed. All counts also carry as possible punishment a $250,000 maximum fine. Previously released on bond, Stubbefield was taken into custody following the guilty verdict where she will remain pending that hearing.
The DOT-OIG conducted the investigation. Assistant U.S. Attorneys Julie Redlinger and Michael Day prosecuted the case.
Woman Sentenced for Participating in Kidnapping of Two U.S. Citizens in MexicoRead the Press Release
LAREDO, Texas – A 31-year-old Mexican woman has been ordered to federal prison for her role in conspiring to hold two U.S. nationals hostage in Nuevo Laredo, Tamaulipas, Mexico, announced U.S. Attorney Ryan K. Patrick. Ruth Sarahi Lopez-Espinoza, of Nuevo Laredo, pleaded guilty Feb. 15, 2017.
Today, Visiting U.S. District Judge Keith P. Ellison handed Lopez-Espinoza a total sentence of 153 months in federal prison. At the hearing, two kidnapping victims spoke of the pain and destruction this event inflicted on them and their families. In handing down the sentence, the court noted that this was one of the worst cases he has seen during his time on the bench. Lopez-Espinoza was ordered to pay $25,000 in restitution to the two victims. Not a U.S. citizen, Lopez-Espinoza is expected to face deportation proceedings following the sentence.
On July 16, 2006, four men wearing masks and brandishing pistols kidnapped two U.S. nationals as they were leaving a wedding reception of a co-worker from a Laredo restaurant. The masked captors forced the victims into the victims’ vehicle and to wear hoods. They were taken to an unknown residence in Nuevo Laredo and detained for two days until the ransom demands were met. The captors demanded $20,000 and the victims’ two vehicles.
During their confinement, the captors told the victims there was an employee at the restaurant who was providing them with current information about what actions were being taken to secure their release. The kidnappers also said they knew about the wedding reception and that they were targeted because of their vehicle - a Chrysler 300.
With cooperation from Mexican law enforcement, U.S. authorities eventually identified Christina Rodriguez, an employee at the restaurant where one of the victims worked at the time, and her sister - Lopez-Espinoza - as the persons who provided the captors with information about the wedding date, location, targets and real time information about investigative efforts during the detention of the victims.
Lopez-Espinoza was arrested in Nuevo Laredo on March 12, 2015, and later extradited to the United States June 28, 2016.
She has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Rodriguez, 42, of Laredo, was also convicted and previously sentenced to 168 months in federal prison and also ordered to pay restitution to the victims.
The kidnappers who executed the plot are currently incarcerated in Mexico for a separate but similar scheme.
The FBI conducted the investigation. Assistant U.S. Christopher S. Coker is prosecuting the case.
Methamphetamine Importer Heads to PrisonRead the Press Release
LAREDO, Texas – A 22-year-old Texas man has been ordered to federal prison following his conviction of importing more than 56 kilograms of methamphetamine, announced U.S. Attorney Ryan K. Patrick. Amado Flores-Casas Jr., of Elgin, pleaded guilty Sept. 1, 2017.
Today, U.S. District Judge Keith P. Ellison handed Flores a total sentence of 120 months in federal prison followed by five years of supervised release. In handing down the sentence, the court noted that this was the defendant’s first drug offense and had no record of violent crimes.
On June 17, 2017, Flores arrived at the Lincoln Juarez International Bridge in Laredo driving a white Ford F-150. He was ordered to secondary inspection, at which time agents using a fiber optic scope noticed crystallization and a thick milky substance below the gasoline inside the tank of the vehicle. Authorities removed the gas tank and discovered approximately 56.78 kilograms of liquid methamphetamine.
Flores will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations and Customs and Border Protection conducted the investigation. Assistant U.S. Attorney Christopher S. Coker prosecuted the case.
Tank Vessel Operator and Master Convicted for Oil and Garbage OffensesRead the Press Release
CORPUS CHRISTI, Texas - Sea World Management & Trading Inc. and Edmon Fajardo were convicted today for maintaining false and incomplete records relating to the discharge of oil and garbage from an oil tanker that was operating off the coast of Texas, announced U.S. Attorney Ryan K. Patrick and Acting Assistant Attorney General Jeffrey H. Wood.
Sea World Management & Trading Inc. is a tank vessel operating company, and Fajardo is the master of the tank vessel Sea Faith. Both admitted that oil cargo residues and machinery space bilge water were illegally dumped from the Sea Faith directly into the ocean while the vessel was transiting to Corpus Christi without the use of required pollution prevention equipment. They also admitted that these discharges were not recorded in the vessel’s Oil Record Book as required. Specifically, on five different occasions between March 10, 2017, and March 18, 2017, Fajardo ordered crew members to illegally discharge oily waste from various locations of the vessel’s cargo/deck spaces. These oily waste discharges bypassed the use of the vessel’s required oil discharge monitoring equipment and were done while the vessel was in the Caribbean Sea and the Gulf of Mexico.
Sea World Management & Trading Inc. and Fajardo further admitted that on March 10, 2017, and March 15, 2017, Fajardo ordered crew members to throw plastics, empty steel drums, oily rags, batteries and empty paint cans directly overboard into the ocean. None of these garbage discharges were recorded as required in the vessel’s Garbage Record Book.
Sea World Management & Trading Inc. and Fajardo pleaded guilty to two felony violations of the Act to Prevent Pollution from Ships for failing to accurately maintain the Sea Faith’s Oil Record Book and Garbage Record Book. Under the terms of the plea agreement, the company will pay a total fine of $2.25 million and serve a three-year term of probation during which all vessels the company operated and calling on U.S. ports will be required to implement a robust Environmental Compliance Plan. Fajardo was also sentenced today to six months in prison to be followed by two years of supervised release. He was also ordered to pay a $2,000 fine.
The U.S. Coast Guard Corpus Christi Sector, U.S. Coast Guard Investigative Service and Environmental Protection Agency-Criminal Investigation Division conducted the investigation. Assistant U.S. Attorney-In-Charge Julie K. Hampton and Trial Attorney Stephen Da Ponte of the Environmental Crimes Section of the Department of Justice prosecuted the case.
More Alarm Monitoring Company Workers Admit to Stealing from CompanyRead the Press Release
HOUSTON – The final two defendants charged in a conspiracy to commit wire fraud involving their former employer have pleaded guilty, announced U.S. Attorney Ryan K. Patrick.
Michell Garcia, 36, and Ray Torres, 46, both of Houston, admitted they electronically submitted falsified vendor requests for payment to divert money to themselves from their former employer’s bank account. Torres pleaded guilty today, while Garcia pleaded guilty Feb. 16, 2018. A third member of the scheme - Sonja Martinez, 47 of Rosharon, entered her guilty plea Feb. 9, 2018.
All three worked at the Houston branch of a Florida-based security company that installed, tested and monitored fire and security systems. The Florida company had acquired the Houston branch from another company and Garcia, Torres and Martinez all worked at the predecessor company.
The company used third party vendors to install its alarm systems. Garcia, Torres and Martinez all worked in the Accounting Department and were responsible for paying the vendors and noting in the company’s accounting system. From November 2011 until May 2016, they all participated in a scheme to divert approximately $1,661,163 to themselves and their family members.
A computer in Texas was used to submit fraudulent vendor requests for payment to their employer’s out-of-state bank. The defendants then utilized an electronic bank token to release funds and transfer money from their employer’s account to their own bank accounts and the bank accounts of their relatives.
U.S. District Judge Keith Ellison set sentencing for Torres on May 10, 2018, while Garcia and Martinez are set for May 3 and April 26, 2018, respectively. All face up to five years in federal prison and a possible $250,000 fine. At the hearing today, the court also entered a money judgment against Torres for $174,647.48, while Garcia and Martinez have respective money judgements for $801,198.40 and $739,450.36.
All were permitted to remain on bond pending their sentencing hearings.
The FBI conducted the investigation. Assistant U.S. Attorney Belinda Beek is prosecuting the case.
Corpus Christi Man Arrested on Child Pornography ChargesRead the Press Release
CORPUS CHRISTI, Texas - A 36-year-old Corpus Christi man has been taken into custody on allegations he distributed child pornography on at least two occasions, announced U.S. Attorney Ryan K. Patrick.
Authorities arrested David Medina this morning upon the filing of a criminal complaint. He is expected to make his initial appearance before B. Janice Ellington at 2:00 p.m. today.
According to the charges, the FBI Child Exploitation Task Force conducted an investigation on a file sharing network looking for potential offenders sharing child pornography in September 2016. An officer was eventually able to download many images of child pornography from a computer and a specific IP address allegedly linked to Medina in Corpus Christi. Agents obtained a search warrant for Medina’s residence, after which agents seized several digital devices that led to the discovery of more than 3,500 images and 28 videos of child pornography, according to the charges.
Another investigation in 2017 led authorities to a different computer sharing child pornography which was traced to a second residence in Corpus Christi allegedly linked to Medina. He cellular phone was seized and allegedly found to contain more than 1,000 images and 95 videos of child pornography.
The criminal complaint further indicates that on Feb. 21, 2018, authorities received information that someone was downloading child pornography at a hotel in Corpus Christi. Agents found that Medina was renting a room at that location and seized his laptop as part of the investigation.
If convicted, Medina faces a minimum of five and up to 20 years in federal prison as well as a possible $250,000 maximum fine, if convicted.
The FBI conducted the investigation with the assistance of the Corpus Christi Police Department - Internet Crimes Against Children Task Force.
Assistant U.S. Attorney Hugo R. Martinez is prosecuting the case, which was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Assistant School Band Director Arrested on Child Pornography ChargesRead the Press Release
CORPUS CHRISTI, Texas - A 28-year-old Corpus Christi man has been charged with distribution of child pornography, announced U.S. Attorney Ryan K. Patrick.
Law enforcement arrested Parker J. Pendergraph this afternoon upon the filing of a criminal complaint. He is expected to make his initial appearance before B. Janice Ellington at 2:00 p.m. tomorrow.
According to the charges, an electronic chat room company notified the National Center for Missing and Exploited Children (NCMEC) that a known image of child pornography had been uploaded to an internet chat room. The complaint alleges authorities were able to link the specific IP address associated with a user known as “jack” to Pendergraph.
Law enforcement determined Pendergraph was employed as an assistant band director for a local high school and middle school and obtained a search warrant for his residence. At that time, authorities seized several digital devices that led to the discovery of the known image of child pornography uploaded to the chat room, according to the charges. In addition, law enforcement allegedly located several other images of child pornography.
Immigration and Customs Enforcement’s Homeland Security Investigations and The Corpus Christi Police Department’s – Internet Crimes Against Children Task Force conducted the investigation with the assistance of NCMEC.
If convicted, Pendergraph faces a minimum of five and up to 20 years in federal prison as well as a possible $250,000 maximum fine.
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.“Compound King” and Two Others Indicted in Multi-Million Dollar ConspiracyRead the Press Release
HOUSTON – A man and woman from Houston are set to appear in federal court on charges related to health care fraud and money laundering, announced U.S. Attorney Ryan K. Patrick. Law enforcement are searching for a third individual also indicted in the case.
George Phillip Tompkins, 73, and Marene Kathryn Tompkins, 66, were taken into custody Thursday. They are expected in court for an arraignment and counsel determination hearing before U.S. Magistrate Judge Dena H. Palermo at 10:00 a.m. today.
Authorities are still seeking a third defendant - Anoop Kumar Chaturvedi, 46, a legal permanent resident from India in connection with the charges. A warrant remains outstanding for his arrest. Anyone with information about his whereabouts is asked to contact the U.S. Postal Service – Office of Inspector General (USPS-OIG) at 1-888-877-7644.
The three are charged in a 17- count indictment that was returned Jan. 24, 2018, and unsealed Feb. 16, with violating the anti-kickback statute, conspiracy to commit health care fraud, health care fraud, wire fraud and conspiracy to launder money.
The Tompkins owned Piney Point Pharmacy on Fondren Road in Houston. The indictment alleges they conspired with Chaturvedi and others to induce the referral of compound gel and cream prescriptions to the pharmacy for dispensing and billing under health benefit programs, including the Federal Employees Compensation Act program (FECA).
Beginning around September 2009 and continuing through approximately September 2016, the indictment alleges the trio engaged in health care fraud and wire fraud as well as illegal kickbacks. The pharmacy allegedly billed the Department of Labor (DOL) - who administered the FECA program - at least $23,392,281 for compound gel and cream medications dispensed pursuant to illegitimate prescriptions and the result of kickback payments. The DOL paid approximately $11,663,704 on the fraudulent claims. The indictment lists several dates when compound gels and creams were dispensed to hundreds of patients, ordered by the same physician. Chaturvedi allegedly distributed a standardized prescription order form and directed the number of mediation refills to be ordered.
The indictment describes compounding as a practice of compounding and creating medications tailored to individual patient needs. George Tompkins was the pharmacist in charge and allegedly referred to himself as the “Compound King.” Marene Tompkins was identified as the pharmacy Vice President, Secretary and Treasurer, while Chaturvedi owned several other businesses in the Houston area, according to the charges.
“The indictment obtained today should send a clear message to healthcare providers that the government is vigilant and vigorously protecting federal benefits programs from corruption,” said Special Agent in Charge Christopher Cave of USPS-OIG , Southern Area Field Office. “The USPS-OIG, along with our law enforcement partners, will continue to investigate these types of cases in order to protect the Office of Workers’ Compensation Programs and USPS from further fraud and abuse.”
If convicted of the money laundering conspiracy, they face up to 20 years in federal prison. Each also faces up to 10 years in prison for convictions of either conspiracy to commit health care fraud, health care fraud and wire fraud as well as a maximum of five years for conspiracy to pay kickbacks.
USPS-OIG, DOL-OIG, IRS-Criminal Investigation, Department of Veterans Affairs – OIG and Department of Homeland Security – OIG conducted the investigation. Assistant U.S. Attorney Julie Redlinger is prosecuting the case.
Texas Man Sentenced for Transporting Aliens in Truck’s Tool BoxRead the Press Release
BROWNSVILLE, Texas – A 34-year-old resident of San Antonio has been ordered to federal prison for illegally transporting undocumented aliens, announced U.S. Attorney Ryan K. Patrick. Richard Sanchez pleaded guilty Nov. 7, 2017.
Today, U.S. District Judge Rolando Olvera sentenced Sanchez to 21 months imprisonment to be immediately followed by a year of supervised release.
On Oct. 10, 2017, law enforcement conducted a traffic stop on a pick-up truck Sanchez was driving near Raymondville. Sanchez consented to a search, after which authorities discovered two undocumented aliens from Mexico and Guatemala in the tool box that was attached to the pick-up truck.
At the hearing today, the court heard about the inhumane and dangerous treatment of the undocumented aliens. They could not escape the toolbox due to a ladder leaning over it. Further, it had to be unlatched from the outside in order to be opened.
Sanchez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Customs and Border Protection and Texas Department of Public Safety conducted the investigation. Assistant U.S. Attorney Jose A. Esquivel Jr. prosecuted the case.
Sweeny Woman Convicted in Sex Trafficking Conspiracy Involving Three MinorsRead the Press Release
GALVESTON, Texas - A Sweeny woman has pleaded guilty in Galveston federal court to conspiracy and sex trafficking of children, announced U.S. Attorney Ryan K. Patrick.
Angela Marks, 24, was originally charged with nine others as part of a sex trafficking ring that used sexually-oriented websites to advertise their illicit business employing four minors as young as 16 for commercial sex. The young girls were induced into posing for pictures used in online advertisements for sex and engaged in commercial sex acts for money.
Marks was associated with three of the minor victims who began working for the sex trafficking organization in February 2017. Between Feb. 23-27, 2017, Marks was one of the defendants who directed the victims to pose in sexually provocative positions. Pictures were then taken with her phone.
After customers began responding to advertisements on Backpage.com, Marks would use a computer application to communicate with customers and to monitor the three minor victims during prostitution dates. Marks instructed the minor victims on how to conduct prostitution dates and how much to charge. During prostitution dates involving the minors at the Hobby Inn and Stay Express Inn in Houston, Marks would also hide in the hotel bathroom.
She also collected the proceeds from the prostitution dates and provided condoms, food and drugs to the minor victims.
U.S. District Judge George C. Hanks accepted the plea today and set sentencing for May 9, 2018. At that time, Marks faces up to life in prison and a possible $250,000 maximum fine.
The FBI and Texas Department of Public Safety conducted the investigation with assistance of sheriff’s offices in Brazoria and Galveston Counties and police departments in Galveston, Sherman, Wharton, La Marque and the University of Texas Medical Branch.
Assistant U.S. Attorneys Sherri Zack and Sebastian Edwards are prosecuting the case.
Man Heads to Prison for Trafficking Drugs Through Port of EntryRead the Press Release
BROWNSVILLE, Texas – A 33-year-old U.S. citizen who was residing in Mexico has been ordered to federal prison for cocaine trafficking, announced Acting U.S. Attorney Ryan K. Patrick. Gerardo Leal pleaded guilty July 19, 2017.
Today, U.S. District Judge Rolando Olvera sentenced Leal to a total of 36 months imprisonment followed by two years of supervised release. In handing down the sentence, Judge Olvera noted that no matter the difficulties Leal may encounter, he should do some prison time and that there was no reason that existed in this world to break the law.
On June 15, 2017, Leal arrived at the Gateway port of entry in Brownsville driving a Mazda 3. At the time, he claimed to be enroute to Sun Loan Company in Brownsville. When officers sent Leal to secondary inspection and moved the Mazda to the vehicle lift for further inspection, Leal attempted to run back to Mexico but was detained before he reached the Mexican border.
Several officers had to assist in placing Leal in handcuffs. After securing Leal, officers continued their inspection and soon discovered five kilograms of cocaine concealed in a false compartment within the center console of the vehicle.
Leal will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Elena Salinas prosecuted the case.
Local Man Convicted of Illegally Selling a FirearmRead the Press Release
HOUSTON – A 34-year-old Houston resident has entered a guilty plea to selling a firearm to a convicted felon, 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).
Reyes Hernandez admitted he sold a pistol to someone he knew to be a felon.
“Selling a gun to a convicted felon is a crime that ATF takes very seriously,” said Milanowski. “We will continue to pursue individuals who break the law and put more guns into the hands of illegal possessors.”
On multiple occasions, a man known to Hernandez had advised that he was a felon and had been convicted of a crime punishable by a term exceeding a year. He noted that, because of that, he was unable to purchase a firearm through legal means.
On June 7, 2017, Hernandez sold a Sig Sauer, model 1911, .45 caliber pistol to this individual against federal law.
U.S. District Judge Gray Miller accepted the plea today and set sentencing for May 18, 2018. At that time, Hernandez faces up to 10 years in federal prison. He was permitted to remain on bond pending that hearing.
The ATF conducted the investigation. Assistant U.S. Attorney Celia Moyer is prosecuting the case.
Garciasville Resident Sentenced for Trafficking CocaineRead the Press Release
BROWNSVILLE, Texas – A 33-year-old Garciasville resident has been ordered to federal prison for cocaine trafficking, announced Acting U.S. Attorney Ryan K. Patrick. Jorge Barrera pleaded guilty Nov. 16, 2017.
Today, U.S. District Judge Rolando Olvera sentenced Barrera to a total of 48 months imprisonment to be immediately followed by two years of supervised release.
On Aug. 16, 2017, authorities began an investigation after a Chevrolet Impala was discovered at the Veterans port of entry in Brownsville that contained more than seven kilograms of cocaine. Authorities conducted a controlled delivery of the vehicle at the La Plaza Mall in McAllen. Surveillance agents were on hand in the parking lot and observed Barrera arrive and park next to the cocaine-loaded vehicle. Soon after his arrival, Barrera got in the Impala and attempted to drive away. However, federal agents surrounded him and took him into custody.
Authorities found more than seven kilograms of cocaine concealed in the vehicle’s dashboard.
Barrera will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Elena Salinas prosecuted the case.
Galveston Resident Sentenced for Two Child Pornography ChargesRead the Press Release
HOUSTON – A 36-year-old man from Galveston County has been ordered to federal prison following his guilty plea of receipt and possession of child pornography, announced U.S. Attorney Ryan K. Patrick. Lavelas Luckey pleaded guilty Oct. 28, 2017.
Today, U.S. District Judge George C. Hanks ordered he serve 73 months in prison followed by 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.
Luckey first came to the attention of law enforcement after multiple images of child pornography were found associated with his online account. Authorities later conducted a search of Luckey’s residence which eventually led to the discovery of 107 videos and 638 images of child pornography.
Luckey admitted ownership of the child pornography as well as the online account he used to obtain it.
At the time of his plea, Luckey admitted to using peer-to-peer software to search for, download and obtain child pornography. He also admitted to distributing the child pornography through his online account.
The Pearland Police Department and 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."
Corpus Christi Man in Custody for Multiple Sexual Exploitation ChargesRead the Press Release
CORPUS CHRISTI, Texas - A 30-year-old Corpus Christi man has been charged with multiple child sexual exploitation crimes, announced U.S. Attorney Ryan K. Patrick.
Matthew Joseph Lucio is set to appear in federal court before B. Janice Ellington at 2:00 p.m. today.
He is charged with two counts of online solicitation and two counts of production of child pornography.
According to the criminal complaint filed Feb. 16, in November 2017, authorities received information that Lucio allegedly solicited a minor female via an internet messaging application for sexual intercourse. Law enforcement identified the minor female who confirmed the abuse, according to the charges. Days later, law enforcement received another report that Lucio allegedly solicited a different minor female via an internet messaging application for sexual intercourse. The complaint alleges authorities identified the second minor female who also confirmed the abuse.
The charges indicate that law enforcement obtained a search warrant for Lucio’s residence, after which agents seized several digital devices and located narcotics. Forensic analysis of the devices led to the discovery of videos depicting the sexual assault of two different minor females, according to the complaint. Both minor females were located and also confirmed the alleged abuse.
The complaint further indicates that Lucio allegedly drugged all four minor females before they were sexually assaulted
If convicted, Lucio faces a minimum of 10 years and up to life in federal prison for the online solicitation of a minor charges and a minimum of 15 and up to 30 years for production of child pornography. Lucio also faces a possible $250,000 maximum fine on each charge, if convicted.
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."
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of lawWoman Convicted of Bank RobberyRead the Press Release
CORPUS CHRISTI, Texas - A second defendant has been convicted for robbing the Prosperity Bank in Yoakum, announced U.S. Attorney Ryan K. Patrick.
On Sept. 22, 2016, Marina Michelle Pulmano, 22, of Tuscaloosa, Alabama, entered the Prosperity Bank and handed the teller a note stating she had a gun and demanded money. The teller complied and Pulmano then left the bank with the cash.
On Nov. 3, 2016, law enforcement officers again responded to a robbery at the same bank. Similarly, a male, later identified as Chad Andrew Latham, handed the teller a note that stated he had a gun and demanded money. Latham then left the bank with the money.
During the investigation, detectives were able to confirm the identities of the robbery suspects after speaking to several people that recognized Pulmano and Latham from the images released to the local media. Latham and Pulmano, who were dating at the time of the robberies, left the area and returned to Alabama where they were later arrested.
Latham, 26, also of Tuscaloosa, Alabama, previously pleaded guilty and was sentenced in August 2017 to 70 months in federal prison.
Senior U.S. District Judge John Rainey accepted Pulmano’s plea today and set sentencing for May 14, 2018. At that time, she faces up to 20 years imprisonment and a maximum $250,000 fine. She was permitted to remain on bond pending that hearing.
The FBI and Yoakum Police Department conducted the investigation. Assistant U.S. Attorney Lance Watt is prosecuting the case.
Local Man Sent to Prison for Robbing Two BanksRead the Press Release
CORPUS CHRISTI, Texas - A Corpus Christi resident has been ordered to federal prison for his conviction of bank robbery, announced U.S. Attorney Ryan K. Patrick. Johnathan Samuel Borden, 32, pleaded guilty Nov. 20, 2017.
Today, Senior U.S. District Judge John Rainey handed Borden a 48-month-sentence to be immediately followed by three years of supervised release. He was also ordered to pay restitution to the banks.
On Jan. 6, 2017, law enforcement officers responded to a bank robbery at the Texas Bridge Credit Union in the 3100 block of Holly in Corpus Christi. After entering the bank, a male, later identified as Borden, handed the teller a bag and demanded money. Borden then left the bank with a significant amount of U.S. currency. During the investigation, agents were able to link Borden to an additional robbery that occurred Dec. 20, 2016, at the Navy Army Community Credit Union in the 9500 block of South Padre Island Drive in Corpus Christi. In that case, Borden again handed the teller a black bag, demanded money and left with it.
In federal custody since his arrest, Borden will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI and the Corpus Christi Police Department conducted the investigation.
Local Man Convicted of Armed Drug Trafficking of Synthetic NarcoticsRead the Press Release
CORPUS CHRISTI, Texas – A 34-year-old Corpus Christi resident has admitted he possessed with intent to distribute synthetic cannabinoids and a firearm during a drug trafficking offense, announced U.S. Attorney Ryan K. Patrick.
On Feb. 27, 2017, Andrew Hernandez was arrested at a local restaurant in Corpus Christi for an outstanding felony warrant. As he was taken into custody, officers removed a loaded .380 caliber handgun from his pocket. As a previously convicted felon, Hernandez, is prohibited from possessing firearms and ammunition per federal law. At the time of arrest, officers also discovered several thousand dollars in U.S. currency and 72 packets of synthetic cannabinoids. Laboratory analysis confirmed the presence of FUB-AMB, which is controlled under the Controlled Substance Analog Act.
Synthetic cannabinoids are chemical compounds that mimic the psychoactive ingredient in marijuana. These chemical compounds can be applied to carrier mediums such as plant material and ingested using rolling papers, pipes, vaporizers or otherwise taken orally. Synthetic cannabinoids are usually sold in small, foil or plastic bags containing dried leaves (resembling potpourri) and is marketed as incense that can be smoked. It is commonly sold and known on the street as synthetic marijuana, fake weed, legal and by its popular brand names such as Spice, K2, Kush, Klimaxx, Mr. Nice Guy, Pot-Pourri, Cloud 9, Geeked Out and many others.
Senior U.S. District Judge John Rainey accepted the plea today and set sentencing for May 14, 2018. At that time, Hernandez faces up to 20 years and a possible $1 million fine for the synthetic drug conviction as well as a minimum of five years and up to life for the illegal possession of a firearm which must be served consecutively to any other sentence imposed.
The Corpus Christi Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney Lance Watt is prosecuting the case.
Former Youth Organizer Sent to Prison for Production of Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – A former teen mentor and founder of a nonprofit youth organization has been ordered to federal prison following his conviction of sexual exploitation of a child, otherwise known as production of child pornography, announced U.S. Attorney Ryan K. Patrick.
Kevin Ray McMillan, 38, of Corpus Christi, was a former teen mentor with the Boys and Girls Club of Corpus Christi and founder of Texas Youth Entrepreneurs - a nonprofit youth organization that mentors aspiring young future business owners. He pleaded guilty Oct. 16, 2017.
Today, U.S. District Judge Senior U.S. District Judge John D. Rainey handed McMillan a 240-month sentence. Additional information was also presented today, including testimony from the victim and her parents who described the impact the crime had to the victim and her family. In handing down the sentence, the court noted that this type of crime destroys families. McMillan was further ordered to pay $18,066 in restitution to the victim and will serve 10 years of supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. He will also be ordered to register as a sex offender.
In May 2017, authorities learned McMillan had been sending sexually-explicit text messages via cellular telephone to a juvenile female. The investigation led to the discovery that McMillan had engaged in sexual activity with the young girl, which was photographed via cellular telephone. He was taken into custody as he was traveling to engage in sexual activity with a minor.
McMillan was arrested on federal charges in May 2017 and has been in custody since that time where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations 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."
Houston Businessman Pleads Guilty to Money Laundering ConspiracyRead the Press Release
A Houston, Texas, man pleaded guilty today to conspiring to commit money laundering, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Ryan K. Patrick for the Southern District of Texas.
According to documents and information provided to the court, Marcus T. Weathersby conspired with others to facilitate the fraudulent sale of second-hand prescription medications to a Utah-based wholesale distributor. This scheme involved purchasing bottles of prescription medications from illegitimate sources and then selling the medications to another wholesale distributor who then sold them to pharmacies as new. Federal regulation requires wholesale distributors of prescription medications to provide to a buyer a pedigree – a written statement identifying each prior sale, purchase, or trade of the drugs being sold that includes the business name and information of all parties to the prior transactions, starting with the manufacturer.
As part of his plea, Weathersby admitted that in approximately December 2010, he established, Acacia Pharma Distributors Inc. (Acacia), a Mississippi corporation. Nearly eight months later, Weathersby directed another individual to incorporate Four Corner Suppliers Inc. (Four Corner) in Mississippi. Acacia and Four Corner purported to be legitimate wholesale distributors of pharmaceuticals licensed and operating in Mississippi, however, in reality Weathersby and others used these corporations to facilitate the illegal sale of second-hand prescription drugs.
Weathersby also opened and caused others to open bank accounts in the names of Acacia and Four Corner. Between February 2011 and July 2012, Weathersby withdrew and led others to withdraw over $2.9 million in cash from these bank accounts and to structure these cash withdrawals in amounts under $10,000 in order to prevent the banks from complying with their legal obligation to prepare currency transaction reports for each cash transaction over $10,000.
U.S. Magistrate Court Judge Nancy K. Johnson scheduled sentencing for May 30. Weathersby faces a statutory maximum sentence of 20 years in prison, as well as a period of supervised release and monetary penalties. Weathersby further agreed to the imposition of a money judgement against him in the amount of $2,991,867.76.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Patrick thanked agents of IRS Criminal Investigation, the Federal Bureau of Investigation, and the Federal Department of Agriculture, who conducted the investigation, and Trial Attorneys Sean Beaty and Terri-Lei O’Malley of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Federal Agents Make Arrests Related to Kidnapping for Ransom SchemeRead the Press Release
LAREDO, Texas – Two Laredo men have been arrested for conspiracy to violate interstate communications by demanding money prior to releasing two hostages, announced U.S. Attorney Ryan K. Patrick.
John Daniel Pavon, 21, and Juan Manuel Ancira, 21, made their initial appearance yesterday before U.S. Magistrate Judge Guillermo R. Garcia, at which time the court ordered them into custody pending a preliminary hearing and a detention hearing set for Feb. 16, 2018, at 10:00 a.m.
On Feb. 8, 2018, a Wichita, Kansas, man reported to authorities that he received a phone call from an unknown male in Laredo claiming to be holding his son against his will, according to the complaint. The unknown male allegedly instructed him to send $2,000 through Money-gram or he would not release his son.
The next day, the FBI spoke to a group of people outside a residence in the 4000 block of Guadalajara Street in Laredo. Agents learned that two men had allegedly ran out of the residence and jumped the fence. They were the Wichita man’s son and another kidnapping victim. The second victim reported that his captors asked his family in Baton Rouge, Louisiana, for $4,000 before they would release him, according to the allegations.
The criminal complaint alleges both victims identified Pavon and Ancira as individuals involved in their kidnapping and who held them against their will.
If convicted of use of interstate communications containing demand for ransom, the defendants face up to 20 years in federal prison.
The FBI conducted the investigation with the assistance of Border Patrol, Drug Enforcement Administration, Texas Rangers, Texas Department of Public Safety, Laredo Police Department and Laredo Airport Police. Assistant U.S. Attorney Julian Castaneda is prosecuting the case.
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is considered innocent unless and until convicted through due process of law.
Five Former Venezuelan Government Officials Charged in Money Laundering Scheme Involving Foreign BriberyRead the Press Release
HOUSTON – Charges were unsealed today against five former Venezuelan government officials for their alleged participation in an international money laundering scheme involving bribes made to corruptly secure energy contracts from Venezuela’s state-owned and state-controlled energy company, Petroleos de Venezuela S.A. (PDVSA). Two of the five defendants are also charged with conspiracy to violate the Foreign Corrupt Practices Act (FCPA).
U.S. Attorney Ryan K. Patrick of the Southern District of Texas, 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 (HSI) in Houston made the announcement.
Four of the defendants - Luis Carlos De Leon Perez (De Leon), 41, Nervis Gerardo Villalobos Cardenas (Villalobos), 50, Cesar David Rincon Godoy (Cesar Rincon), 50, and Rafael Ernesto Reiter Munoz (Reiter), 39, were arrested in Spain in October 2017 by Spanish authorities on arrest warrants based on a 20-count indictment returned in the Southern District of Texas on Aug. 23, 2017. Cesar Rincon was extradited from Spain on Feb. 9, 2018, and made his initial appearance today before U.S. Magistrate Judge Stephen Smith of the Southern District of Texas. De Leon, Villalobos and Reiter remain in Spanish custody pending extradition. A fifth defendant - Alejandro Isturiz Chiesa (Isturiz), 33, remains at large and a warrant remains outstanding for his arrest. All five defendants are citizens of Venezuela. De Leon is also a U.S. citizen.
De Leon, Villalobos, Reiter and Isturiz are each charged with one count of conspiracy to commit money laundering, while Cesar Rincon is charged with two counts of conspiracy to commit money laundering. De Leon, Cesar Rincon and Reiter are charged with four counts of money laundering, while Villalobos and Isturiz are charged with one and five counts of money laundering, respectively. De Leon and Villalobos are each also charged with one count of conspiracy to violate the FCPA.
“Effective deterrence of corruption requires prosecution of culpable individuals, wherever those individuals are located,” said U.S. Attorney Patrick. “We will continue to enforce the FCPA against those that avail themselves of the privileges of the American marketplace.”
“Corruption threatens economic and political stability, and victimizes ordinary law-abiding people by diverting public funds into the pockets of corrupt officials and bribe payers,” said Acting Assistant Attorney General Cronan. “The charges announced today demonstrate our commitment to fighting corruption at its source and to prosecuting those who allegedly launder their illicit gains through American financial institutions and real estate. Through cases like this, we are sending a strong message to corrupt foreign officials: if you launder your ill-gotten gains through the United States, you will be prosecuted.”
“This case is an example of what can be accomplished when international law enforcement agencies work together to thwart complex cross-border crimes” said Special Agent in Charge Dawson. “HSI is committed to upholding the rule of law and investigating those that would participate in illegal practices.”
The indictment alleges the five defendants, all of whom were then-current officials of PDVSA and its subsidiaries or former officials of other Venezuelan government agencies or instrumentalities, were known as the “management team” and wielded significant influence within PDVSA. According to the indictment, the management team conspired with each other and others to solicit several PDVSA vendors, including vendors who were residents of the United States and who owned and controlled businesses incorporated and based in the United States, for bribes and kickbacks in exchange for providing assistance to those vendors in connection with their PDVSA business. The indictment further alleges the co-conspirators then laundered the proceeds of the bribery scheme through a series of complex international financial transactions including to, from or through bank accounts in the United States. In some instances, they allegedly laundered the bribe proceeds in the form of real estate transactions and other investments in the United States.
According to the indictment, two PDVSA vendors - Roberto Enrique Rincon Fernandez (Roberto Rincon), 57, of The Woodlands, and Abraham Jose Shiera Bastidas (Shiera), 54, of Coral Gables, Florida - sent more than $27 million in bribe payments to an account in Switzerland for which De Leon was a beneficial owner and De Leon and Villalobos were authorized signers. The indictment alleges those funds were later transferred to other accounts in Switzerland. Both Roberto Rincon and Shiera previously pleaded guilty to FCPA charges in connection with a scheme to bribe PDVSA officials. According to admissions made in connection with their pleas, Roberto Rincon and Shiera paid bribes and provided other things of value to PDVSA officials to ensure that their companies were placed on PDVSA bidding panels and ensure that they were given payment priority so that they would get paid ahead of other PDVSA vendors with outstanding invoices. Roberto Rincon and Shiera are currently awaiting sentencing.
With the unsealing of the indictment today, the Justice Department has announced charges against 15 individuals, 10 of whom have pleaded guilty, as part of a larger and ongoing investigation by the U.S. government into bribery at PDVSA.
HSI in Houston is conducting the ongoing investigation with assistance from HSI in Boston and Madrid as well as from IRS Criminal Investigation. Deputy Chief John Pearson and Assistant U.S. Attorney (AUSA) Robert S. Johnson are prosecuting the case along with Trial Attorneys Jeremy R. Sanders and Sarah E. Edwards of the Criminal Division’s Fraud Section. AUSA Kristine Rollinson 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 also provided assistance.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Five Former Venezuelan Government Officials Charged in Money Laundering Scheme Involving Foreign BriberyRead the Press Release
Charges were unsealed today against five former Venezuelan government officials for their alleged participation in an international money laundering scheme involving bribes made to corruptly secure energy contracts from Venezuela’s state-owned and state-controlled energy company, Petroleos de Venezuela S.A. (PDVSA). Two of the five defendants are also charged with conspiracy to violate the Foreign Corrupt Practices Act (FCPA).
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 (HSI) in Houston made the announcement.
Four of the defendants, Luis Carlos De Leon Perez (De Leon), 41; Nervis Gerardo Villalobos Cardenas (Villalobos), 50; Cesar David Rincon Godoy (Cesar Rincon), 50; and Rafael Ernesto Reiter Munoz (Reiter), 39, were arrested in Spain in October 2017 by Spanish authorities on arrest warrants based on a 20-count indictment returned in the Southern District of Texas on Aug. 23, 2017. Cesar Rincon was extradited from Spain on Feb. 9, and made his initial appearance today before U.S. Magistrate Judge MJ Stephen Smith of the Southern District of Texas. De Leon, Villalobos and Reiter remain in Spanish custody pending extradition. A fifth defendant, Alejandro Isturiz Chiesa (Isturiz), 33, remains at large. All five defendants are citizens of Venezuela; De Leon is also a U.S. citizen.
De Leon, Villalobos, Reiter and Isturiz are each charged with one count of conspiracy to commit money laundering. Cesar Rincon is charged with two counts of conspiracy to commit money laundering. Each of the defendants is charged with one or more counts of money laundering, as follows: De Leon, Cesar Rincon and Reiter, four counts each; Villalobos, one count; and Isturiz, five counts. De Leon and Villalobos are also each charged with one count of conspiracy to violate the FCPA.
“Corruption threatens economic and political stability, and victimizes ordinary law-abiding people by diverting public funds into the pockets of corrupt officials and bribe payers,” said Acting Assistant Attorney General Cronan. “The charges announced today demonstrate our commitment to fighting corruption at its source and to prosecuting those who allegedly launder their illicit gains through American financial institutions and real estate. Through cases like this, we are sending a strong message to corrupt foreign officials: if you launder your ill-gotten gains through the United States, you will be prosecuted.”
“Effective deterrence of corruption requires prosecution of culpable individuals, wherever those individuals are located,” said U.S. Attorney Patrick. “We will continue to enforce the FCPA against those that avail themselves of the privileges of the American marketplace.”
“This case is an example of what can be accomplished when international law enforcement agencies work together to thwart complex cross-border crimes” said Special Agent in Charge Dawson. “HSI is committed to upholding the rule of law and investigating those that would participate in illegal practices.
The indictment alleges that the five defendants, all of whom were then-current officials of PDVSA and its subsidiaries or former officials of other Venezuelan government agencies or instrumentalities, were known as the “management team” and wielded significant influence within PDVSA. According to the indictment, the management team conspired with each other and others to solicit several PDVSA vendors, including vendors who were residents of the United States, and who owned and controlled businesses incorporated and based in the United States, for bribes and kickbacks in exchange for providing assistance to those vendors in connection with their PDVSA business. The indictment further alleges that the co-conspirators then laundered the proceeds of the bribery scheme through a series of complex international financial transactions, including to, from or through bank accounts in the United States, and, in some instances, laundered the bribe proceeds in the form of real estate transactions and other investments in the United States.
According to the indictment, two PDVSA vendors, Roberto Enrique Rincon Fernandez (Roberto Rincon), 57, of The Woodlands, Texas, and Abraham Jose Shiera Bastidas (Shiera), 54, of Coral Gables, Florida, sent over $27 million in bribe payments to an account in Switzerland for which De Leon was a beneficial owner and De Leon and Villalobos were authorized signers. The indictment alleges that those funds were later transferred to other accounts in Switzerland. Both Roberto Rincon and Shiera previously pleaded guilty in the Southern District of Texas to FCPA charges in connection with a scheme to bribe PDVSA officials. According to admissions made in connection with their pleas, Roberto Rincon and Shiera paid bribes and provided other things of value to PDVSA officials to ensure that their companies were placed on PDVSA bidding panels and ensure that they were given payment priority so that they would get paid ahead of other PDVSA vendors with outstanding invoices. Roberto Rincon and Shiera are currently awaiting sentencing.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
With the unsealing of the indictment today, the Justice Department has announced charges against 15 individuals, 10 of whom have pleaded guilty, as part of a larger, ongoing investigation by the U.S. government into bribery at PDVSA. HSI in Houston is conducting the ongoing investigation with assistance from HSI in Boston and Madrid, as well as from Internal Revenue Service Criminal Investigation. Trial Attorneys Jeremy R. Sanders and Sarah E. Edwards of the Criminal Division’s Fraud Section and 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 also provided assistance.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Six Individuals Charged in $7 Million International Investment ScamRead the Press Release
Charges were unsealed today in Houston, Texas, against six individuals for their alleged participation in an elaborate international advance fee and money laundering scheme. The scheme allegedly involved the impersonation of Branch Banking & Trust (BB&T) and JPMorgan Chase (Chase) executives, the fabrication of U.S. government documents, the creation of fraudulent investment agreements in the name of BB&T and Chase, and the purchase of luxury vehicles to launder the proceeds of the scheme.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Ryan Patrick of the Southern District of Texas, Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office and Inspector General Steve A. Linick for the U.S. Department of State made the announcement.
Uju Okigbo, 48, of Richmond, Texas; Chioma Okafor, 28, of Houston, Texas; Marita Ranalan Underwood, 61, of Manila, Philippines; John Christian Rutledge, 64, of Yaphank, New York; and Osa May Martin, 68, of Carthage, Missouri, were charged in an indictment unsealed today in the Southern District of Texas. All five defendants were charged with one count of conspiracy to commit wire fraud. Okigbo and Okafor were also charged with one count of conspiracy to launder monetary instruments, as well as two counts each of wire fraud and two counts each of concealment money laundering. Okigbo is also charged with three counts of engaging in transactions with proceeds of specified unlawful activity, and one count of aggravated identity theft for impersonating a U.S. banking executive. Underwood, Rutledge and Martin are also charged with one count of conspiracy to wrongfully use government seals.
Okigbo was already in custody as of today. Martin made her initial appearance this afternoon in front of a U.S. magistrate judge in Springfield, Missouri, and Rutledge is scheduled to make his initial appearance.
A sixth individual, Tiffany Sourjohn, 47, of Miami, Oklahoma, was charged by an information with one count of conspiracy to commit wire fraud and wrongful use of government seals, which was also unsealed today. Sourjohn made her initial appearance this morning and entered a guilty plea to the information in front of Senior U.S. District Court Judge Ewing Werlein Jr. of the Southern District of Texas.
According to the charging documents, the scheme involved fraudulent offers of investment funding by perpetrators primarily living in Nigeria who impersonated U.S. bank officials and financial consultants over the Internet and over the phone. Victims in various countries were deceived into believing they would receive millions of dollars of investment funding as part of joint ventures with U.S. banks, usually BB&T or Chase. The perpetrators utilized false domain names to make it appear that senders of emails were actually affiliated with BB&T or Chase. To convince victims that the opportunities were authentic, the perpetrators recruited U.S. citizens to pose as bank “representatives” at in-person meetings with victims around the world, and, if occurring abroad, utilized sham visits to the local U.S. embassy or consulate and fabricated U.S. government documents to make the victims believe the U.S. government was sponsoring the investment agreements. The victims were then allegedly induced to pay tens of thousands, and often hundreds of thousands, of dollars to U.S.-based bank accounts on the belief that such payments were necessary to effectuate their investment agreements.
According to the charging documents, to ensure the proceeds made it back to Nigeria, after victims wired in funds, money movers who controlled the U.S. bank accounts liquidated the proceeds through outgoing wire transfers to exporters, cash withdrawals and purchases of vehicles, including luxury brands such as Land Rover and Mercedes Benz, which were then shipped to Nigeria. According to the charging documents, Okigbo and Okafor were primarily money movers in the scheme, while Underwood, Rutledge, Martin and Sourjohn were representatives.
The scheme allegedly resulted in losses of more than $7 million from victims in more than 20 countries. To date, a house in Richmond, a 2014 Land Rover Range Rover, and approximately $200,000 in cash, all directly traceable to victims’ payments, have been seized.
The charges in the indictment are merely allegations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the FBI and Department of State Office of Inspector General. The case is being prosecuted by Trial Attorney William E. Johnston of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Suzanne Elmilady of the Southern District of Texas. Forfeiture is being handled by Assistant U.S. Attorney Kristine Rollinson of the Southern District of Texas.
Six Individuals Charged in $7 Million International Investment ScamRead the Press Release
HOUSTON – Charges were unsealed today against six individuals for their alleged participation in an elaborate international advance fee and money laundering scheme. The scheme allegedly involved the impersonation of Branch Banking & Trust (BB&T) and JPMorgan Chase (Chase) executives, the fabrication of U.S. government documents, the creation of fraudulent investment agreements in the name of BB&T and Chase and the purchase of luxury vehicles to launder the proceeds of the scheme.
U.S. Attorney Ryan Patrick of the Southern District of Texas, Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office and Inspector General Steve A. Linick for the U.S. Department of State made the announcement.
Uju Okigbo, 48, of Richmond; Chioma Okafor, 28, of Houston; Marita Ranalan Underwood, 61, of Manila, Philippines; John Christian Rutledge, 64, of Yaphank, New York; and Osa May Martin, 68, of Carthage, Missouri, were charged in an indictment unsealed today in the Southern District of Texas. All five defendants were charged with one count of conspiracy to commit wire fraud. Okigbo and Okafor were also charged with one count of conspiracy to launder monetary instruments as well as two counts each of wire fraud and two counts each of concealment money laundering. Okigbo is also charged with three counts of engaging in transactions with proceeds of specified unlawful activity and one count of aggravated identity theft for impersonating a U.S. banking executive. Underwood, Rutledge and Martin are also charged with one count of conspiracy to wrongfully use government seals.
Okigbo was already in custody as of today. Martin made her initial appearance this afternoon in front of a U.S. magistrate judge in Springfield, Missouri, and Rutledge is scheduled to make his initial appearance.
A sixth individual, Tiffany Sourjohn, 47, of Miami, Oklahoma, was charged by an information with one count of conspiracy to commit wire fraud and wrongful use of government seals, which was also unsealed today. Sourjohn made her initial appearance this morning and entered a guilty plea to the information in front of Senior U.S. District Court Judge Ewing Werlein Jr. of the Southern District of Texas.
According to the charging documents, the scheme involved fraudulent offers of investment funding by perpetrators primarily living in Nigeria who impersonated U.S. bank officials and financial consultants over the Internet and phone. Victims in various countries were deceived into believing they would receive millions of dollars of investment funding as part of joint ventures with U.S. banks, usually BB&T or Chase. The perpetrators utilized false domain names to make it appear that senders of emails were actually affiliated with BB&T or Chase. To convince victims the opportunities were authentic, the perpetrators recruited U.S. citizens to pose as bank “representatives” at in-person meetings with victims around the world and, if occurring abroad, utilized sham visits to the local U.S. embassy or consulate and fabricated U.S. government documents to make the victims believe the U.S. government was sponsoring the investment agreements. The victims were then allegedly induced to pay tens of thousands, and often hundreds of thousands, of dollars to U.S.-based bank accounts on the belief that such payments were necessary to effectuate their investment agreements.
According to the charging documents, to ensure the proceeds made it back to Nigeria, after victims wired in funds, money movers who controlled the U.S. bank accounts liquidated the proceeds through outgoing wire transfers to exporters, cash withdrawals and purchases of vehicles, including luxury brands such as Land Rover and Mercedes Benz, which were then shipped to Nigeria. Okigbo and Okafor were primarily money movers in the scheme, while Underwood, Rutledge, Martin and Sourjohn were representatives, according to the charges.
The scheme allegedly resulted in losses of more than $7 million from victims in more than 20 countries. To date, a house in Richmond, a 2014 Land Rover Range Rover and approximately $200,000 in cash, all directly traceable to victims’ payments, have been seized.
The FBI and Department of State - Office of Inspector General conducted the investigation. Assistant U.S. Attorney (AUSA) Suzanne Elmilady is prosecuting the case along with Trial Attorney William E. Johnston of the Criminal Division’s Fraud Section. AUSA Kristine Rollinson is handling forfeiture matters.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Former Alarm Monitoring Company Worker Admits to Stealing from CompanyRead the Press Release
HOUSTON – A 47-year-old Rosharon woman has pleaded guilty to conspiracy to commit wire fraud, announced U.S. Attorney Ryan K. Patrick.
Sonja Martinez admitted she and her co-conspirators electronically submitted falsified vendor requests for payment to divert money to themselves from their former employer’s bank account.
Martinez worked at the Houston branch of a Florida-based security company that installed, tested and monitored fire and security systems. The Florida company had acquired the Houston branch from another company and she had worked at the predecessor company.
The company used third party vendors to install its alarm systems. Martinez worked in the Accounting Department and was responsible for paying the vendors and noting in the company’s accounting system. From November 2011 until May 2016, Martinez and others participated in a scheme to divert approximately $1,661,163 to themselves and their family members.
A computer in Texas was used to submit fraudulent vendor requests for payment to their employer’s out-of-state bank. Martinez and others then utilized an electronic bank token to release funds and transfer money from their employer’s account to their own bank accounts and the bank accounts of their relatives.
U.S. District Judge Keith Ellison accepted the plea today and set sentencing for April 26, 2018, at which time Martinez faces up to five years in federal prison and a possible $250,000 fine. At the hearing today, the court also entered a money judgment against Martinez for $739,450.36.
She was permitted to remain on bond pending her sentencing.
The FBI conducted the investigation. Assistant U.S. Attorney Belinda Beek is prosecuting the case.
Federal Agents Make Arrests Related to Firearms and Narcotics ViolationsRead the Press Release
CORPUS CHRISTI, Texas – Authorities executed multiple search warrants and arrested five Corpus Christi residents following enforcement actions resulting in criminal complaints for federal firearms and/or narcotics violations, announced U.S. Attorney Ryan K. Patrick.
Those arrested today include Annabella Lynn Davila, 20, Carlos Virgilio Hernandez, 30, and John Rudy Hernandez, 27, and Abelardo Garza Jr., 33. All made their initial appearances today before U.S. Magistrate Judge B. Janice Ellington, at which time they were ordered into custody pending a detention hearing set for Feb. 14 at 9:00 am. Travis Robert Hellman, 34, was taken into custody last night on unrelated charges and is expected to appear in federal court in the near future.
Hellman and Davila are charged with conspiracy to possess with intent to distribute methamphetamine, while Carlos and John Hernandez are charged with possession of a firearm after being convicted of a misdemeanor crime of domestic violence. Garza was taken into custody for allegedly being a felon in possession of a firearm.
As part of an undercover operation, Special Agents with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and Corpus Christi Police Department (CCPD) Narcotics Division purchased multiple firearms from individuals operating out of the Touch of Ink tattoo parlor in Corpus Christi, according to the indictment. On each occasion, the individual selling the firearm was allegedly prohibited from possessing the firearm and/or ammunition under federal law.
Further, during one of the firearms purchases, Hellman agreed to sell methamphetamine that Davila delivered, according to the complaint.
The possession of firearms charge carries a maximum penalty of 10 years imprisonment and a possible $250,000 maximum fine. Those charged with possession with intent to distribute controlled substances face up to 20 years of imprisonment and a possible $1 million maximum fine.
The ATF and CCPD conducted the investigation. Assistant U.S. Attorney Lance Watt is prosecuting the cases.
Smuggler Sent to Prison for Transporting Aliens in Wooden BoxesRead the Press Release
LAREDO, Texas – A 27-year-old man has been sent to federal prison for his participation in a smuggling scheme that involved dangerous and life-threatening conditions, announced U.S. Attorney Ryan K. Patrick. Zachery Steven Blizzard pleaded guilty Sept. 5, 2017.
Today, U.S. District Judge Hilda G. Tagle sentenced Blizzard, of Kingport, Tennessee, to 48 months in prison, followed by a three-year-term of supervised release.
On June 15, 2017, Blizzard instructed three undocumented aliens - one of whom was a minor - to hide themselves in two aftermarket wooden boxes built into the back of his white 2008 Chevrolet work van. Authorities discovered the aliens as Blizzard attempted to pass through a U.S. Border Patrol Checkpoint on Highway 59 approximately 15 miles west of Laredo.
Blizzard is one of eight defendants apprehended since April 2017 for transporting undocumented aliens in wooden boxes built into the back of vehicles. In some instances, the boxes were nailed or screwed shut with temperatures inside often reaching more than 100 degrees.
Yesterday, Judge Tagle sentenced Ricky Lee Parker, 51, of Calhoun, Georgia, to 24 months in prison for transporting eight undocumented aliens - found sweating and thirsty - in two cramped wooden boxes. In addition, U.S. District Judge Diana Saldana previously sentenced Jason Allen North, 39, of Ashland, Kentucky; Richard Jordan Lamar Defoor, 32, of Calhoun, Georgia; Allan Ray Collins, 32, of Isom, Kentucky; and Donna Lynn Williams, 46, of Chatsworth, Georgia, while U.S. District Judge Marina Garcia Marmolejo ordered Sean Michael McKinney, 46, of Steger, Illinois, to prison for transporting between 5-10 undocumented aliens each in the same manner. North and Collins each received 24 month, while Defoor and Collins were sentenced to 18 months. McKinney received a 30-month-term of imprisonment.
Travis Dean McKelroy, 48, of San Antonio, pleaded guilty last week and is awaiting sentencing.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigations with the assistance of U.S. Border Patrol. Special Assistant U.S. Attorney Lisa M. Ezra prosecuted the cases.
Houston-based fraudsters Plead GuiltyRead the Press Release
HOUSTON – Two fraud conspirators have entered guilty pleas to participating in a mortgage fraud conspiracy that fraudulently obtained mortgage loans to purchase homes in Houston and Surfside, announced U.S. Attorney Ryan K. Patrick.
David Lee Morris, 55, and Derwin Jerome Blackshear, 50, pleaded guilty to one count each of conspiracy to commit wire fraud and bank fraud, while Blackshear pleaded to bank fraud and also admitted to operating a tax preparation business at various locations throughout the Houston area that prepared fraudulent tax returns.
The mortgage fraud scheme ran from 2005 to 2009. Morris, Blackshear and others associated with the A. Cole Realty Group in Houston caused mortgage lenders to loan excessive amounts of money for the purchase of residential real estate in the Houston and Surfside areas. The scheme focused primarily on the purchase of Beach homes in Surfside. Mortgage lenders were induced to loan far more money than the properties were actually worth. The conspirators then skimmed the excess loan funds from the real estate transactions.
Morris and Blackshear’s primary role in the scheme was to recruit and pay individuals known as “straw buyers” to sign mortgage loan documents. However, the loan applications contained numerous misrepresentations about the straw buyers’ financial status and ability to repay the loans. Co-conspirators obtained inflated appraisals of the properties to be purchased that supported the excessive lending. Once the loans funded, Morris and Blackshear pocketed a portion of the fraudulently obtained loan funds themselves and then distributed the rest of the funds to other participants in the scheme, including the straw buyers. Ultimately, all the homes purchased through the scheme went into foreclosure, resulting in millions of dollars of losses to the mortgage lenders.
In addition to the mortgage fraud scheme, Blackshear engaged in tax fraud. He owned and operated a tax return preparation business under the name “Level One Tax Services” during 2012 through 2015. Blackshear admitted he willfully placed numerous false items on his clients’ income tax returns in an attempt to generate excessive refunds. As part of his plea, Blackshear admitted he prepared dozens of fraudulent tax returns, causing a loss of $251,323.
Sentencing has been set before Chief U.S. District Judge Lee Rosenthal for May 17, 2018. At that time, each faces up to 30 years in prison as well as a $1 million maximum fine. Blackshear also faces another three years for the tax fraud and a $250,000 fine.
As part of their plea agreements, both have agreed to pay restitution and forfeiture. Morris agreed to pay $4,468,151 in restitution to the defrauded banks and agreed to forfeit $1,460,170.51 in proceeds he earned from the scheme. Blackshear agreed to pay $251,323 in restitution to the U.S. Treasury, $1,995,273 restitution to the defrauded banks and $629,774 in forfeiture of illegal proceeds.
The FBI and the Texas Department of Public Safety conducted the mortgage fraud investigation. Assistant U.S. Attorney (AUSA) Robert S. Johnson is prosecuting the case. IRS – Criminal Investigation conducted the criminal tax investigation. AUSA Attorney Jimmy Sledge Jr. is prosecuting that case.
Young Undocumented Alien Sentenced for Smuggling DrugsRead the Press Release
LAREDO, Texas – A 26-year-old undocumented alien from Nuevo Laredo, Tamaulipas, Mexico, has been ordered to prison following his conviction of conspiracy to import methamphetamine, announced U.S. Attorney Ryan K. Patrick. Eduardo Sanchez-Obregon pleaded guilty Oct. 3, 2017, to one count each of conspiracy to import more than 50 grams of methamphetamine and more than 500 grams of a mixture of methamphetamine.
Today, U.S. District Judge Marina Garcia-Marmolejo sentenced him to 70 months in federal prison. Not a U.S. citizen, he is expected to face deportation proceedings following his prison term.
On July 28, 2017, Sanchez-Obregon took part in a conspiracy to smuggle 7.5 kilograms of methamphetamine. He was traveling from Mexico on a Turimex commercial passenger bus with the drugs contained inside a small suitcase in the luggage compartment. Authorities searched the bus as it arrived at the IH-35 U.S. Border Patrol Checkpoint. He was arrested shortly thereafter.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration and Border Patrol conducted the investigation. Assistant U.S. Attorney José Angel Flores Jr. prosecuted the case.
Young Local Man Sentenced for Trafficking Nearly Five Kilograms of MethRead the Press Release
BROWNSVILLE, Texas – A 21 year old Brownsville resident has been ordered to federal prison for methamphetamine trafficking, announced Acting U.S. Attorney Ryan K. Patrick. Ernesto Alonso Valdez pleaded guilty Aug. 31, 2017.
Today, U.S. District Judge Andrew Hanen sentenced Valdez to a total of 132 months imprisonment to be immediately followed by five years of supervised release. In handing down the sentence, Judge Hanen stated “So take this to heart. Try to turn this into a positive. You have one advantage that you are young.”
On Nov. 24, 2016, Ernesto Alonso Valdez arrived at the Gateway port of entry in Brownsville driving a Chevrolet HHR. At the time, he claimed to be en route to visit his girlfriend at the hospital. However, agents soon discovered 4.28 kilograms of methamphetamine concealed in the back seats and rear bumper of the vehicle. A small quantity of narcotics was also found in his shoe during a personal search. Valdez admitted knowing the personal use in his shoe was cocaine or methamphetamine.
Valdez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Elena Salinas prosecuted the case.
Mexican Meth Smuggler Ordered to Federal PrisonRead the Press Release
LAREDO, Texas – A 41-year old resident of Apodaca, Nuevo Leon, Mexico, has been ordered to prison for a conspiracy to import more than 10 kilograms of methamphetamine, announced U.S. Attorney Ryan K. Patrick. Sergio Aguilar-Hernandez pleaded guilty Aug. 31, 2017.
Today, visiting U.S. District Judge Hilda G. Tagle ordered him to prison for 90 months. Not a U.S. citizen, he is expected to face deportation proceedings following the sentence.
On June 15, 2017, Aguilar-Hernandez arrived at the Columbia bridge driving a tractor trailer. Inside the vehicle was a box of aloe vera drinks that were found to contain approximately 10.26 kilograms of liquid methamphetamine.
Aguilar-Hernandez had entered the country two days prior with the same box of aloe vera drinks, but was unable to locate his contact in Laredo. He then continued to Stafford to deliver a legitimate load, picked up a new one in Victoria and returned to Mexico.
Aguilar-Hernandez entered again on June 15 in a second attempt to meet his contact, but was apprehended at the bridge prior to delivering the methamphetamine.
Aguilar-Hernandez has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations and Customs and Border Protection conducted the investigation. Assistant U.S. Attorney Jose Angel Moreno prosecuted the case.
Laredo Couple Sentenced for Methamphetamine ConspiracyRead the Press Release
LAREDO, Texas – A man and woman from Laredo have been ordered to prison following their convictions of conspiracy to distribute methamphetamine, announced U.S. Attorney Ryan K. Patrick. Roberto Rodriguez, 30, and his girlfriend Maria Del Carmen Sarabia, 33, pleaded guilty July 6 and Sept. 7, 2017, respectively.
Today, visiting U.S. District Judge Hilda G. Tagle found Rodriguez to be a leader, organizer or supervisor and ordered him to serve 121 months in prison, while Sarabia received a 70-month-term of imprisonment. They will serve three and two years of supervised release following their sentences, respectively.
On Jan. 12, 2017, police officers conducted a traffic stop of a vehicle Rodriguez was driving. Sarabia was riding as a passenger. Inside the vehicle were methamphetamine crystals scattered on and around the driver’s seat after a failed attempt to toss the package out of the window. Rodriguez was taken into custody. Following his arrest, authorities also searched their apartment which resulted in the discovery of a bag of methamphetamine which was packaged for distribution.
Authorities later reviewed calls between Rodriguez and Sarabia which revealed discussions of distributing additional methamphetamine still hidden at their apartment. A subsequent search of the apartment resulted in the recovery of additional narcotics. Sarabia was then taken into custody and also charged in the conspiracy.
Law enforcement eventually recovered a total of 228 grams of methamphetamine between Jan. 12 and Jan. 19, 2017.
The couple have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of the Laredo Police Department and the Webb County Sheriff’s Office. Assistant U.S. Attorney José Angel Moreno prosecuted the case.
Freeport Man Sent to Prison for Three Child Pornography ConvictionsRead the Press Release
GALVESTON, Texas – A 22-year-old Freeport man has been ordered to federal prison following his convictions of distribution, receipt and possession of child pornography, announced U.S. Attorney Ryan K. Patrick. Miguel Jimenez Jr. pleaded guilty Jan. 25, 2017.
Today, U.S. District Judge George Hanks handed Jimenez 240 and 120 months for the distribution and possession charges as well as 240 months for the receipt of child pornography. The sentences will run concurrently. Additional information was also presented today, including that besides the victims in the images and videos, Jimenez had contact with four minor females from whom he sought graphic nude images. In handing down the sentence, Judge Hanks noted his obligation to protect the public and the victims. Jiminez will also be on supervised release for rest of his life 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. Restitution will be determined at a later date.
Jimenez came to the attention of authorities after they believed he was uploading and storing child pornography into a virtual storage account. A search warrant was executed at his residence, at which time law enforcement located and seized various computers and cellular phones. Forensic analysis of the phones, computers and virtual storage accounts revealed 658 child pornography images and 634 child pornography videos. The images and videos included minors under the age of 12 engaging in sexual activity, toddlers, instances of sadism, masochism, bondage involving the penetration of the minor, as well as masturbation and the lewd and lascivious display of the children’s genitals.
Jimenez admitted he possessed, received and distributed numerous images of child pornography. Jimenez chatted with unidentified users who shared his sexual interest in children. Further, Jimenez used several different on-line applications to chat with underage girls all over the country. He had an online relationship with one minor female whom he had threatened by saying she had to continue the relationship or he would send naked pictures of her to her friends.
The forensic analysis results indicated that Jimenez searched the Internet using the phrase, “how much trouble can you be in for sending naked photos of ex.”
Jimenez has been detained since his arrest on May 5, 2016, at which time U.S. Magistrate John R. Froeschner found him to be a flight risk and danger to the community. Jimenez 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, Galveston Division, conducted the investigation.
This case, prosecuted by Assistant U.S. Attorney Sherri 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."
Brazilian Couple Arrested for International Kidnapping of a ChildRead the Press Release
Updated Feb. 22:
A federal grand jury returned a two-count indictment against all three defendants on Feb. 21.
They are set for a counsel determination hearing Feb. 26, 2018, at 10:00 a.m. before U.S. Magistrate Judge Dena Hanovice Palermo in Houston federal court.
They are charged with conspiracy to commit international parental kidnapping and international parental kidnapping
If convicted, each faces up to five years in federal prison for the conspiracy as well as a maximum of three years if convicted of the kidnapping charge.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.---
HOUSTON - An international businessman and his wife have been arrested and charged with conspiracy and international parental kidnapping, announced U.S. Attorney Ryan K. Patrick.
Carlos Otavio Guimaraes, 67, and Jemima Guimaraes, 65, were arrested at Miami, Florida, International Airport early this morning as they arrived on a flight from Brazil. They are set to make their initial appearances before U.S. Magistrate Judge John J. O’Sullivan at 1:30 p.m. today in Miami, at which time the government expects to request their continued detention pending further criminal proceedings.
The criminal complaint filed in Houston alleges they and their daughter - Marcelle Guimaraes, 39 - conspired to illegally retain the child in Brazil. The mother and minor child had traveled to Brazil to attend a family event in July 2013, but were supposed to return to Houston no later than July 20, 2013, according to the charges. Marcelle Guimaraes is also charged but not as yet in custody.
As of the filing of the complaint, the child has not returned to the United States.
If convicted, each faces up to five years in federal prison for the conspiracy as well as a maximum of three years if convicted of the kidnapping charge.
The FI conducted the investigation. Assistant U.S. Attorney Sherri L. Zack 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.
Two Convicted of Conspiring to Rob Drug Money from Undercover AgentRead the Press Release
McALLEN, Texas – Two illegal aliens residing in Pharr have entered guilty pleas to 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, 27, admitted they conspired to rob an undercover agent. Acosta-Moctezuma also pleaded guilty to an unrelated charge of conspiring to export defense articles.
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.
U.S. District Judge Micaela Alvarez accepted the pleas today and set sentencing for April 19, 2018. At that time, both face up to 20 years imprisonment for the conspiracy as well as a mandatory five years for the firearms charge that must be served consecutively.
Acosta also faces up to 20 years for the conspiracy to export defense articles. In that case, he admitted to supplying a .223 rifle to an undercover agent posing as a buyer who was going to smuggle the rifle to Mexico.
Both men will remain in custody pending sentencing.
The Drug Enforcement Administration and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation with the assistance of the U.S. 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.
Local Man Convicted in Two ConspiraciesRead the Press Release
HOUSTON – A 46 year-old Houston resident has entered a guilty plea to conspiring to steal money from victim bank accounts and conspiring to steal taxpayer money by obtaining fraudulent income tax refunds, announced U.S. Attorney Ryan K. Patrick.
In the first scheme, Joseph Johnson and others would impersonate victims and call their banks during which time they would deceive them into providing selected information. Over time, they would receive enough information to be able to pass the bank’s challenge questions, thereby allowing them to access victim accounts. The conspirators then changed the login credentials, ordered checks, transferred money to fraudulent accounts and withdrew the funds before the fraud could be uncovered. From this scheme, Johnson and others caused an intended loss of at least $447,102.82.
Johnson also pleaded guilty to conspiring to commit tax refund fraud. Johnson and his co-conspirators would file fraudulent tax returns with the IRS that listed false employment, income, tax deductions and tax credits. Often, Johnson and his co-conspirators filed these fraudulent tax returns under the names of victims whose identities they stole. Shortly after the money was deposited, the conspirators withdrew the money and divided it among themselves the funds could be frozen.
U.S. District Judge Lynn Hughes accepted the pleas today and has set sentencing for June 4, 2018. At that time, Johnson faces up to 20 years in prison for the tax fraud conspiracy as well as another five years for the impersonation scam. Both convictions also carry a possible fine of $250,000.
He was permitted to remain on bond pending that hearing.
The FBI and IRS - Criminal Investigation conducted the investigation. Assistant U.S. Attorney Michael Chu is prosecuting the case.
Hidalgo County Judge Arrested and Charged with BriberyRead the Press Release
McALLEN, Texas - A Texas state district judge has been arrested on allegations he accepted approximately $6000 in cash bribes, announced 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 Christopher Combs of the FBI - San Antonio Division.
Rodolfo “Rudy” Delgado, 64, of Edinburg, is currently the presiding judge for the 93rd District Court for the State of Texas and has jurisdiction over Texas criminal and civil cases located within Hidalgo County. He was charged in a criminal complaint with bribery concerning programs receiving federal funds.
Authorities took Delgado into custody on Friday. He made his initial appearance earlier today before U.S. Magistrate Judge Scott Hacker, at which time he was permitted release upon posting $100,000 bond.
The criminal complaint alleges Delgado accepted bribes from an attorney in exchange for favorable judicial consideration on cases pending in his courtroom. Delgado allegedly accepted bribes on three separate occasions in exchange for Delgado agreeing to release three clients on bond with cases pending before his court. The first two bribes allegedly totaled approximately $520 in cash. The third bribe occurred in January 2018, at which time Delgado accepted approximately $5,500 in cash, according to the charges.
If convicted, Delgado faces up to 10 years in federal prison.
The FBI conducted the investigation. Assistant U.S. Attorneys Julie Searle and Robert Guerra and Trial Attorneys Peter Nothstein and Todd Gee of the Criminal Division’s Public Integrity Section are 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.
Texas Judge Arrested and Charged with BriberyRead the Press Release
A Texas state district court judge has been arrested on allegations he accepted approximately $6,000 in cash bribes, announced 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 Christopher Combs of the FBI San Antonio Division.
Rodolfo “Rudy” Delgado, 64, of Edinburg, Texas, is currently the presiding judge for the 93rd District Court for the State of Texas and has jurisdiction over Texas criminal and civil cases located within Hidalgo County. He was charged in a criminal complaint with bribery concerning programs receiving federal funds.
Authorities took Delgado into custody on Friday. He made his initial appearance earlier today before U.S. Magistrate Judge Scott Hacker, at which time he was permitted release upon posting $100,000 bond.
The criminal complaint alleges Delgado accepted bribes from an attorney in exchange for favorable judicial consideration on criminal cases pending in his courtroom. Delgado allegedly accepted bribes on three separate occasions in exchange for Delgado agreeing to release three clients on bond with cases pending before his court. The first two bribes allegedly totaled approximately $520 in cash. The third bribe occurred in January 2018, at which time Delgado accepted approximately $5,500 in cash, according to the charges.
The FBI conducted the investigation. Trial Attorneys Peter Nothstein and Todd Gee of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys Julie N. Searle and Robert Guerra of the Southern District of Texas are prosecuting the case.
A criminal complaint is merely an allegation, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Bookkeeper Admits to Embezzling Client FundsRead the Press Release
HOUSTON – A local woman has entered a guilty plea to 12 counts of mail and wire fraud and four counts of filing a false tax return, announced U.S. Attorney Ryan K. Patrick.
Gwendolyn M. Berry admitted that from September 2008 through Oct. 1, 2014, she took funds in excess of $1.7 million from a family for whom she provided bookkeeping services. Berry stole from the education accounts of the minor children and other family bank accounts and it to make payments for the benefit of herself and her family.
Berry has also admitted she filed a false federal tax return for the tax years 2011 through 2014. In each of these tax returns, Berry omitted reporting some of her income and falsely claimed a refund.
Sentencing is set for May 4, 2018, before U.S. District Judge Gray Miller. At that time, she faces up to 20 years in federal prison for each of the fraud counts as well as another three years for the tax convictions.
Berry was permitted to remain on bond pending that hearing.
The U.S. Secret Service and IRS - Criminal Investigation conducted the investigation. Assistant U.S. Attorney Melissa Annis is prosecuting the case.
Mission Resident Sentenced to Prison for Cocaine PossessionRead the Press Release
McALLEN, Texas – A lawful permanent resident who was residing in Mission has been ordered to prison for possessing with the intent to distribute approximately 50 kilograms of cocaine, announced U.S. Attorney Ryan K. Patrick. A McAllen federal jury convicted Leonel Luis Nordhausen-Cuevas, 59, on July 21, 2017, following a two-day trial and less than an hour of deliberation.
Today, U.S. District Judge Ricardo Hinojosa handed Nordhausen-Cuevas a 10-year sentence. Nordhausen-Cuevas is expected to face loss of his legal status in the U.S. and deportation proceedings following his release from prison.
During trial, the jury heard that a Border Patrol (BP) agent was conducting surveillance at the StarrCo farms south of La Grulla on March 11, 2016, and observed Nordhausen-Cuevas drive down to a ramp near the Rio Grande River, enter the brush and return to his truck carrying something heavy. He then drove to a building on the farm and carried something inside.
Soon after, another agent arrived and observed Nordhausen-Cuevas standing outside the truck. He claimed the truck was not his and that someone else had just exited the truck and ran south. The agent searched the truck and found a fertilizer bag containing approximately 25 kilograms of cocaine wrapped in small brown bundles with distinctive markings.
Nordhausen-Cuevas had the truck’s keys on him, but still claimed it was someone else who was driving it.
The first agent arrived at the scene and identified Nordhausen-Cuevas as the person he saw pickup something from the river area based on his clothing and stature. That agent then investigated the first building that Nordhausen-Cuevas entered and found another fertilizer bag full of cocaine bundles, just like the one in the truck.
Nordhausen-Cuevas later claimed that a “Martin” had been the driver, but gave no more information about “Martin,” upon questioning. The jury heard that there were no employees named “Martin” working on the farm at that time.
Nordhausen-Cuevas will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
BP and the Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorneys Joseph T. Leonard and Roberto Lopez Jr. are prosecuting the case.
Justice Department Settles Discrimination Lawsuit Against Owners and Operators of Houston-Based Sports BarRead the Press Release
HOUSTON - The Justice Department announced today it has reached a settlement to resolve a lawsuit alleging discrimination on the basis of race, color and national origin by Ayman Jarrah and Land Guardian Inc., the owners and operators of 360 Midtown, a sports bar and lounge located in Houston.
Today’s settlement resolves a lawsuit filed by the Department on Sept. 28, 2016, alleging that 360 Midtown, which previously operated as Gaslamp, engaged in a pattern or practice of illegal conduct by implementing discriminatory practices to discourage or deny admission to African-American, Hispanic and Asian-American patrons. The United States alleged that these practices included selectively imposing cover charges against minority patrons and selectively enforcing a dress code against them.
“This settlement resolves serious allegations of racial discrimination,” said U.S. Attorney Ryan K. Patrick. “The announcement today should make clear that any such illegal bias in these types of establishments will not be tolerated in this district and reflects my office’s continued commitment to vigorously enforcing our nation’s civil rights laws.”
“No individuals should be denied admission to any place of public accommodation because of the color of their skin,” said Acting Assistant Attorney General John Gore of the Justice Department’s Civil Rights Division. “The Justice Department will continue to protect the rights of all persons to be free from discrimination on the basis of their race or national origin at bars, restaurants and other places of public accommodation”
Under the settlement agreement, defendants are required to comply with federal law by not discriminating against patrons on the basis of race, color or national origin; to adopt and implement non-discriminatory admissions criteria; to implement a system for receiving and investigating complaints of discrimination; and to conduct monitoring to ensure that 360 Midtown’s employees are acting in a non-discriminatory manner consistent with federal law.
Title II of the Civil Rights Act of 1964 prohibits discrimination on the basis of race, color, religion or national origin in places of public accommodation, such as restaurants, hotels, movie theaters, nightclubs, stadiums and other places of exhibition or entertainment. Under Title II, the Civil Rights Division can obtain injunctive relief that changes policies and practices to remedy customer discrimination. Title II does not authorize the Division to obtain monetary damages for individual customers who are victims of discrimination.
More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Persons who believe they have experienced or witnessed unlawful discrimination in public accommodations may contact the Housing and Civil Enforcement Section at (202) 514-4713.
Justice Department Settles Discrimination Lawsuit Against Owners and Operators of Houston, Texas-Based Sports BarRead the Press Release
The Justice Department today announced it has reached a settlement to resolve a lawsuit alleging discrimination on the basis of race, color and national origin by Ayman Jarrah and Land Guardian Inc., the owners and operators of 360 Midtown, a sports bar and lounge located in Houston, Texas.
Today’s settlement resolves a lawsuit filed by the Department on Sept. 28, 2016, alleging that 360 Midtown, which previously operated as Gaslamp, engaged in a pattern or practice of illegal conduct by implementing discriminatory practices to discourage or deny admission to African-American, Hispanic and Asian-American patrons. The United States alleged that these practices included selectively imposing cover charges against minority patrons and selectively enforcing a dress code against them.
“No individuals should be denied admission to any place of public accommodation because of the color of their skin,” said Acting Assistant Attorney General John Gore of the Justice Department’s Civil Rights Division. “The Justice Department will continue to protect the rights of all persons to be free from discrimination on the basis of their race or national origin at bars, restaurants and other places of public accommodation”
“This settlement resolves serious allegations of racial discrimination,” said U.S. Attorney Ryan K. Patrick. “The announcement today should make clear that any such illegal bias in these types of establishments will not be tolerated in this district and reflects my office’s continued commitment to vigorously enforcing our nation’s civil rights laws.”
Under the settlement agreement, defendants are required to comply with federal law by not discriminating against patrons on the basis of race, color or national origin; to adopt and implement non-discriminatory admissions criteria; to implement a system for receiving and investigating complaints of discrimination; and to conduct monitoring to ensure that 360 Midtown’s employees are acting in a non-discriminatory manner consistent with federal law.
Title II of the Civil Rights Act of 1964 prohibits discrimination on the basis of race, color, religion or national origin in places of public accommodation, such as restaurants, hotels, movie theaters, nightclubs, stadiums and other places of exhibition or entertainment. Under Title II, the Civil Rights Division can obtain injunctive relief that changes policies and practices to remedy customer discrimination. Title II does not authorize the Division to obtain monetary damages for individual customers who are victims of discrimination.
More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Persons who believe they have experienced or witnessed unlawful discrimination in public accommodations may contact the Housing and Civil Enforcement Section at (202) 514-4713.
Corpus Christi Man Convicted of Possession of Child PornographyRead the Press Release
CORPUS CHRISTI, Texas - A 40-year-old Corpus Christi man has admitted he possessed child pornography, announced U.S. Ryan K. Patrick.
In March 2017, Queensland Police Services in Australia identified a computer discussing child pornography on an Internet website. That computer was later linked to Timothy 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.
Today, Traut admitted he reviewed and collected child pornography.
U.S. District Judge Nelva Gonzalez Ramos accepted the guilty plea today and set sentencing for May 2, 2018. At that time, Traut faces up to 20 years in federal prison and a possible $250,000 maximum fine. Upon completion of any prison term imposed, Traut also faces a maximum of life on supervised release during which time the court can impose a number of special conditions designed to protect children and prohibit the use of the Internet.
Traut has been and will remain in custody pending his sentencing hearing.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of the Corpus Christi Police Department’s Internet Crimes Against Children Task Force.
Assistant U.S. Attorney Hugo R. Martinez is prosecuting the case, which was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Pharr Woman Convicted of Bank FraudRead the Press Release
McALLEN, Texas – A former bank employee has entered a guilty plea to allegations she stole more than $1 million from customer accounts, announced U.S. Attorney Ryan K. Patrick.
Cynthia Luna Rodriguez, 45, of Pharr, acknowledged she committed two counts of bank fraud and one count of embezzlement that occurred over eight years. Rodriguez admitted to illegally withdrawing money from customers’ accounts and to hiding the unauthorized withdrawls by back-filling the accounts with money from other customers’ accounts and by changing the address on the customer accounts without authorization.
Rodriguez worked at First National Bank in Edinburg. Beginning in at least January 2006, she began taking money from customer accounts without authorization. She continued to do so during the time PlainsCapital Bank took over First National Bank.
A PlainsCapital Bank audit resulted in her firing on Aug. 12, 2014. Following her termination, employees discovered documents at her desk including a 1099 statement belonging to one of the victims. The statement had been altered with whiteout over the address and interest earned sections and new information typed over them. The new address was actually a private mailbox that Rodriguez leased.
Law enforcement executed a search warrant on that private mailbox, at which time they discovered multiple mailings to account holders at her address.
Further investigation revealed a large amount of unexplained money deposited into some of Rodriguez’s accounts which corresponded with the time of the unauthorized withdrawls from the victim accounts. The victim accounts belonged to individuals who interacted with Rodriguez directly when she was employed at the bank. The accounts primarily belonged to elderly individuals and to individuals living out of the country whom were not likely to regularly monitor their accounts. When account holders or their representatives came in to close their statements, Rodriguez moved money from another victim’s account to backfill the account about to be closed.
A forensic audit conducted by an outside accounting firm determined that approximately $1.3 million was taken from six victim accounts over an eight-year time span. As part of her plea, Rodriguez agreed to pay more than $1.1 million in restitution.
U.S. District Court Judge Micaela Alvarez accepted the plea and sent sentencing for April 11, 2018. At that time, Rodriguez faces up to 30 years in federal prison and a possible $1 million fine. She was permitted to remain on bond pending that hearing.
The FBI conducted the investigation. Assistant U.S. Attorney Joseph Leonard is prosecuting the case.
Man Charged with Tax Evasion and Other Tax CrimesRead the Press Release
HOUSTON – A local man has been taken into custody following the return of an indictment alleging a total of eight tax crimes, announced U.S. Attorney Ryan K. Patrick.
Edward J. Crouse turned himself in to federal authorities today. He is expected to make his initial appearance before U.S. Magistrate Judge Frances Stacy as early as 10:00 a.m.
A federal grand jury returned the eight-count indictment Jan. 25, 2018. Crouse is charged with two counts of tax evasion for his 2011 and 2012 U.S. Individual Income Tax returns, five counts of willfully failing to truthfully account for and to pay over employment tax withholdings and one count of obstructing and impeding the due administration of the Internal Revenue Code.
If convicted, he faces up to five years for each of the tax evasion charges and for willfully failing to truthfully account for and to pay over employment tax withholdings, while the obstruction charge carries a three-year-maximum term. He also faces a possible $250,000 fine on each of the counts.
IRS-Criminal Investigation conducted the investigation. Assistant U.S. Attorney Charles J. Escher 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.###
California Woman Sentenced for Importing Methamphetamine and HeroinRead the Press Release
LAREDO, Texas – A 42-year-old woman has been ordered to federal prison following her conviction of conspiracy to import methamphetamine and heroin, announced U.S. Attorney Ryan K. Patrick. Aurelia Rufino-Pilar pleaded guilty Sept. 5, 2017.
Today, U.S. District Court Judge Diana Saldaña ordered her to serve a total of 108 months in prison. She is a legal permanent resident, but could face deportation proceedings following her term of imprisonment.
On April 21, 2017, Rufino-Pilar arrived at the Lincoln-Juarez Bridge port of entry in Laredo in a taxi and applied for admission to the United States. At primary inspection, she stated she had luggage and some bags in the taxi. She claimed they were not hers and was just taking them to San Antonio for a friend.
She further stated that she was a legal permanent resident who had traveled from her home in Bakersfield, California, to Nuevo Laredo, Tamaulipas, Mexico, and had stayed there two hours to receive treatment for psoriasis. She said she was going to take her friend’s luggage to San Antonio and then return to her home in California.
The taxi was referred to secondary inspection where agents discovered eight tubs of mole inside four duffle bags. The officers opened one tub and found a cylindrical object from which a sample was taken and tested positive for methamphetamine. A sample from another cylinder tested positive for heroin. In total, authorities discovered a total of 36.18 kilograms of liquid methamphetamine and 4.14 kilograms of heroin.
Rufino-Pilar ultimately admitted that the purpose of her trip was to transport narcotics to San Antonio and to seek treatment for her skin condition. She planned to take a bus to San Antonio to deliver the narcotics.
She has been in custody where she will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Customs and Border Protection and Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Michael Bukiewicz is prosecuting the case.
Alien Smugglers Sentenced after Rollover Incident that Led to DeathRead the Press Release
LAREDO, Texas – Two Laredo residents and a Nuevo Laredo man have been sentenced to federal prison for harboring and transporting illegal aliens which resulted in multiple deaths, announced U.S. Attorney Ryan K. Patrick. Four aliens died and another four received severe injuries resulting from a vehicle rollover.
Christina Rosalinda Washington, 31, of Laredo, pleaded guilty Nov. 10, 2016, while Gerardo Lucero-Martinez, 46, also of Laredo, and Raul Arreola-Marron, 50, an undocumented alien from Mexico living in Laredo, pleaded guilty Aug. 23, 2016.
Today, U.S. District Judge Diana Saldaña ordered Washington, Arreola-Marron and Lucero-Martinez to serve 70, 126 and 71 months, respectively. Arreola-Marron had been on federal supervised release at the time of the offense and was further ordered to serve an additional six months. Washington and Lucero-Martinez will serve five-year-terms of supervised release following their sentences, while Arreola-Marron, not a U.S. citizen, is expected to face deportation proceedings following his release. In handing down the sentences, Judge Saldaña noted that each compounded the tragedy and added to the suffering of the aliens by not calling 911 immediately to report the accident so that medical personnel could attend to the injured.
At the time of their pleas, the three admitted to conspiring to harbor eight aliens in Laredo and transporting them to Houston. Washington managed the aliens at her residence, while Arreola-Marron transported the aliens after their crossing from Mexico to Washington’s residence and provided all transport vehicles. Lucero-Martinez was engaged in transporting the aliens to Houston.
Near midnight on Feb. 17, 2016, near the intersection of Texas Highway 59 and Farm to Market Road 2895, Lucero-Martinez lost control of the pickup truck he was driving. The vehicle flipped and all occupants were thrown from the truck. He telephoned Arreola-Marron and Washington to report the accident and asked Arreola-Marron to come to the scene to pick him up. Lucero-Martinez thereafter telephoned another person to pick him up who drove him to a Laredo hospital. At no time did any of the three defendants attempt to provide or contact authorities to provide medical assistance to the aliens left at the scene. State, local and federal authorities arrived four hours later and provided emergency first aid to the four survivors.
The defendants have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations, Border Patrol, Texas Department of Public Safety and the Webb County District Attorney’s Office conducted the investigation. Assistant U.S. Attorney Homero Ramirez prosecuted the case.
Houston Resident Convicted of SORNA ViolationRead the Press Release
HOUSTON – A 33-year-old man from Harris County has entered a guilty plea to failure to register as a sex offender, announced U.S. Attorney Ryan K. Patrick. Nicholas Isaiah Carlson admitted he violated the Adam Walsh Act, aka Sex Offender Registration and Notification Act (SORNA).
On Jan. 8, 2013, Carlson was convicted in Benton County, Oregon, for sexual abuse in the second degree. As a result, he was required to register as a sex offender until January 2023.
Carlson originally came to Houston in August 2016. Although he held a number of jobs and resided in Houston for several months, he never registered as required with authorities. During the plea hearing today, Carlson admitted he knowingly and intentionally failed to register as sex offender. He further acknowledged he knew he was required to do so after arriving in Harris County.
Sentencing has been set for April 17, 2018, before U.S. District Judge Nancy Atlas. At that time, Carlson faces up to 10 years imprisonment and a possible $250,000 maximum fine.
The U.S. Marshals Service 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."