Southern District of Texas
Press releases recorded for this federal judicial district.
Houston Man Gets Significant Sentence for Trafficking MethRead the Press Release
HOUSTON – A 46-year-old resident of Houston has been ordered to federal prison for his conviction of trafficking nearly six kilograms of methamphetamine, announced U.S. Attorney Ryan K. Patrick. Marco Antonio Aparicio-Santos pleaded guilty Aug. 12, 2016.
Today, Senior U.S. District Judge David Hittner sentenced Ortiz-Flores to 210 months in federal prison to be immediately followed by five years of supervised release.
At the time of his plea, Aparicio-Santos admitted to playing a key role in attempting to deliver methamphetamine in the Houston area.
On June 13, 2014, a confidential source mistakenly received several bundles which contained approximately six kilograms of methamphetamine from two unknown male couriers working with him. The couriers had approached the source and mistakenly threw a bag in his car containing six bundles of methamphetamine. The source quickly realized the bundles contained drugs and contacted federal agents who advised him to contact a co-defendant Jesus Ortiz-Flores. At that time, Ortiz-Flores advised him that drugs were supposed to go to Aparicio-Santos who was then supposed to divide it up and provide to others.
Ortiz-Flores told the source he could just sell the some of the drugs himself. The source later told Ortiz-Flores he “sold” two kilograms of methamphetamine. Upon the direction of Ortiz-Flores, the source then delivered the remaining four kilograms to Aparicio-Santos for him to sell. The drugs were hidden inside a spare tire and delivered as instructed.
Officers then conducted a traffic stop on a vehicle Aparicio-Santos was driving and seized the methamphetamine. All six of the bundles of methamphetamine were subsequently sent for further analysis, which demonstrated the drugs had a net weight of 5.924 kilograms and were 100% pure.
The drugs had been imported from Mexico.
The evidence in the case also revealed Aparicio-Santos was involved in other methamphetamine trafficking transactions totaling more than 11 kilograms for which he was also held accountable at the hearing today.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Ortiz-Flores was also convicted and later sentenced to 25 years in federal prison.
The Drug Enforcement Administration, Houston Police Department and Harris County Sheriff’s Office conducted the Organized Crime Drug Enforcement Task Force investigation. Assistant U.S. Attorneys Arthur R. Jones and Ted Imperato are prosecuting the case.
Houston Man Convicted of Multiple Child Pornography ChargesRead the Press Release
HOUSTON – A 28-year-old Houston man has entered a guilty plea to two counts of production and one count of possession of child pornography, announced U.S. Attorney Ryan K. Patrick.
Robert Matthew Jimenez admitted he had solicited named images of a 14-year-old girl who resided in Buffalo, New York.
The girl’s father had learned that someone she believed was a 17-year-old male had contacted her via the Internet. The father reported to authorities that his minor daughter had been sending naked images of herself at the request of that person. However, the investigation revealed it was not a 17-year-old boy, but was, in fact, Jimenez.
He had manipulated the minor female and caused her to take images of herself, images that constitute child pornography. The investigation revealed he had also done this to at least one other identified minor female.
Jimenez texted the minors and used social media applications such as Facebook, Snapchat and Instagram to manipulate the minors into sending the images. He was often abusive and aggressive in his communications with them.
Authorities executed a search warrant at his Houston residence which resulted in the discovery of the second victim. Authorities also discovered that he also sent a picture of his genitalia to that victim.
Jimenez is believed to have contacted dozens of other females.
U.S. District Judge Nancy Atlas accepted the plea today and has set sentencing for April 17, 2018. At that time, Jimenez faces a minimum of 15 and up to 30 years in prison for each of the production counts as well as another 10 years for the possession. The charges also carry a potential fine of up to $250,000. He will also be ordered to serve a minimum of five years and up to life on supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. He will also have to register as a sex offender.
He will remain in custody pending his sentencing hearing.
The FBI conducted the investigation.
Assistant U.S. Attorney Sherri L. Zack prosecuted the case which was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Another Convicted in “on the Rox” Tax ConspiracyRead the Press Release
HOUSTON – A local bar owner has entered a guilty plea to conspiring with others to defraud the United States by failing to pay taxes on income he received from vending machines located in the bars he owned, announced U.S. Attorney Ryan K. Patrick.
In the plea agreement filed in the record of the case, Thomas E. Johnson admitted he had partial ownership of multiple bars in the Houston area that operated under the name “On the Rox.” Johnson conspired with others to conceal the cash income from vending machines located in the bars from the IRS.
Johnson admitted he failed to report a total of $463,277 in income for tax years 2010, 2011 and 2012. His failure to pay taxes on this income resulted in a tax loss to the United States of $148,338.
Two others have been convicted in relation to the scam at “On the Rox.” Jerome Rivera pleaded guilty last week, while Mathew J. Mitchell entered his plea Dec. 8, 2017.
Johnson’s sentencing has been set for May 17, 2018, before Chief U.S. District Judge Lee H. Rosenthal. At that time, he faces up to five years in federal prison and a possible $250,000 maximum fine. Johnson was permitted to remain on bond pending that hearing.
IRS-Criminal Investigation conducted the investigation. Assistant U.S. Attorney Justin R. Martin is prosecuting the case.
Corpus Christi Man Convicted of Distribution of Child PornographyRead the Press Release
CORPUS CHRISTI, Texas - A 28-year-old Corpus Christi man has admitted he distributed child pornography, announced U.S. Ryan K. Patrick.
In May 2016, authorities discovered that Randy Michael Ramirez was communicating with an undercover detective in Dallas and eventually sent a link which contained 76 videos of child pornography. Law enforcement seized a cellular telephone from Ramirez’s residence which resulted in the discovery of more than 80 images and 12 videos of child pornography. Many of the videos involved sexually explicit conduct with children as young as infants.
The court also heard today that upon his arrest, Ramirez attempted to hide a cellular telephone. Law enforcement was able to locate the device and a forensic analysis revealed an additional 120 images of child pornography.
Sentencing has been set before Senior U.S. District Judge Janis Graham Jack on April 9, 2018. At that time, Ramirez faces a minimum of five and up to 20 years in federal prison and a possible $250,000 maximum fine. Upon completion of any prison term imposed, Ramirez 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.
Ramirez has been and will remain in custody pending that hearing.
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."
Another Guilty in Fort Hood Soldier Alien Smuggling CaseRead the Press Release
BROWNSVILLE, Texas – A 51-year old who had been illegally residing in Houston has entered a guilty plea to conspiracy to transport and harbor undocumented aliens and illegal re-entry after deportation, announced U.S. Attorney Ryan K. Patrick.
Victoriano Zamora-Jasso aka “Tata,” made an appearance today in federal court today on the eve of jury selection.
In early 2014, Zamora-Jasso began supplying aliens to Arnold Gracia, 47, from Harlingen. Gracia would then make arrangements with others to transport the aliens through the immigration checkpoint at Sarita. Gracia recruited Brandon Troy Robbins, 23, of San Antonio, Eric Alexander Rodriguez, 24, of Odem, Texas, Christopher David Wix, 23, of Abilene, and Yashira Perez-Morales, 27, from Watertown, New York – all then active duty soldiers stationed at Ft. Hood - to transport and deliver the aliens further north.
The conspiracy continued from approximately March to September of 2014. The soldiers would conceal the aliens under their military gear and made many successful trips during the course of the conspiracy.
Zamora-Jasso was indicted in 2016 and arrested after a traffic stop in Conroe in July 2017. Today, he admitted his involvement in the conspiracy and to being a previously convicted alien who returned after deportation in 2013.
Gracia and all the soldiers were previously sentenced in 2015 and 2016 with Gracia receiving a 73-month sentence while Robbins, Rodriguez, Wix and Perez-Morales received sentences of 20, 12 months, 12 months and a day and five years probation, respectively.
Sentencing for Zamora-Jasso is scheduled for May 9, 2018, before U.S. District Judge Rolando Olvera. At that time, he faces up to 10 years imprisonment and a possible $250,000 maximum fine.
He will remain in custody pending that hearing.
Immigration and Customs Enforcement’s Homeland Security Investigation conducted the investigation with the assistance of Customs and Border Protection. Assistant U.S. Attorneys Oscar Ponce and Angel Castro are prosecuting the case.
Man Convicted in Tax Avoidance ConspiracyRead the Press Release
HOUSTON – A local bar owner has entered a guilty plea to conspiring with others to defraud the United States by failing to pay taxes on income he received from vending machines located in the bars he owned, announced U.S. Attorney Ryan K. Patrick.
In the plea agreement filed in the record of the case, Jerome E. Rivera admitted he had partial ownership of multiple bars in the Houston area that operated under the name “On the Rox.” Rivera conspired with others to conceal the cash income from vending machines located in the bars from the IRS.
According to the plea agreement, Rivera admitted he failed to report a total of $557,289 in income for tax years 2010, 2011 and 2012. Rivera’s failure to pay taxes on this income resulted in a tax loss to the United States of $147,375.
U.S. District Judge David Hittner accepted the plea and has set sentencing for April 19, 2018. At that time, Rivera faces up to five years in federal prison and a possible $250,000 maximum fine. Rivera was permitted to remain on bond pending that hearing.
IRS-Criminal Investigation conducted the investigation. Assistant U.S. Attorney Justin R. Martin is prosecuting the case.
Jury Convicts Final Two in Katy Bank RobberyRead the Press Release
HOUSTON – The final two people involved in the July 2017 armed robbery of First Community Credit Union in Katy have been convicted, announced U.S. Attorney Ryan K. Patrick. The jury deliberated for approximately two hours following a four-day trial before convicting Walter Freeman Jordan aka “Wacko,” 30, and Johnathon Nico Wise, 26, both of Houston.
Both were charged and convicted of aiding and abetting aggravated bank robbery. Jordan was also convicted of aiding and abetting the unlawful use of a firearm in the commission of a crime of violence.
Five others - Jaylen Christine Loring, 21, Daryl Carlton Anderson, 32, Deandre Bendard Santee, 26, Raymond Demond Pace, 20, and Zelmer Samuel Bonner, 26, pleaded guilty prior to trial.
The jury heard that at approximately 12:52 p.m. on July 25, 2017, a stolen black Toyota Tundra drove to the front of the First Community Credit Union located at 23120 Cinco Ranch Boulevard in Katy. Once there, Jordan, Bonner and Pace entered the bank and ordered everyone to get on the ground. While inside, Jordan and Bonner jumped the teller counter and demanded credit union employees to open the teller drawers. When one of those employees did not comply quickly enough, Bonner punched the employee in the head while yelling “hurry up!”
Pace kept customers and employees on the ground during the robbery. Soon thereafter, he yelled “the cops are down the street, let’s go!”
The robbers were communicating with the lookouts - Wise, Santee, Anderson and Loring - outside of the credit union via cell phone during the crime.
The robbers returned to the Toyota Tundra and fled the scene along with three other vehicles – a silver Chevrolet Malibu, silver Nissan Rogue and a maroon Volkswagen Jetta. Loring was apprehended a short time later in the Malibu as was Anderson who was driving the Jetta. Shortly thereafter, officers also stopped the Rogue and arrested Santee and Wise.
Authorities pursued the Tundra for 19 miles, which was travelling at speeds up to 120 mph east on I-10. Authorities were eventually able to apprehend Pace, Bonner and Jordan at the North Post Oaks Lofts apartment complex in Houston. Officers located a Springfield semi-automatic pistol from the Toyota Tundra as well as a Stoeger Cougar .40 Caliber semi-automatic pistol from inside the apartment where Jordan had been hiding.
During trial, the jury heard from Loring and Anderson who testified about the robbery plan and what transpired. Additional testimony came from more than 10 officers as well as an expert who explained how the cell phones were identified and used during the crime.
The defense attempted to convince the jury that Jordan and Wise had been mis-identified and had no knowledge of the robbery plan. They did not believe their claims and found them guilty as charged.
They are set for sentencing April 12, 2018.
All of the defendants face up to 25 years for the bank robbery charge. Bonner, Pace and Jordan also face an additional seven years for the firearms conviction which must be served consecutively to any other prison term imposed. With the exception of Loring, who was permitted to remain on bond, all have been and will remain in custody pending their respective sentencing hearings.
The case is the result of the Houston Law Enforcement Violent Crime Initiative created to proactively fight violent crime across the Greater Houston area. The FBI and the Houston Police Department conducted the investigation. Assistant U.S. Attorneys Richard D. Hanes and Heather Rae Winter are prosecuting the case.
ID Thieves Get Federal Prison TimeRead the Press Release
CORPUS CHRISTI, Texas – Two local men have been ordered to federal prison following their convictions of identity theft, announced U.S. Attorney Ryan K. Patrick. Vernon Sonsteng, 56, and Michael Anthony Villegas, 33, both of Corpus Christi, pleaded guilty in October 2017 to aggravated identity theft and possessing with the intent to unlawfully use five or more false identification documents.
Today, Senior U.S. District Judge John D. Rainey ordered Sonsteng to serve a total of 56 months in federal prison - 32 months for the fraudulent use charge followed by a consecutive 24 months for the identity theft. In federal court yesterday, Judge Rainey sentenced Villegas also to the mandatory 24 months for the identity theft as well as 28 months for the other conviction. Following his 52-month sentence, he will be on supervised release for three years as will Sonsteng.
As part of their sentence, both were also ordered to pay restitution of $19,187.73 to their identified victims.
In July 2016, authorities stopped Sonsteng and Villegas for a traffic violation. During a search of the vehicle, officers discovered more than 50 counterfeit Texas driver’s licenses bearing either the photograph of Sonsteng or Villegas, but with identifying information of other people. The vehicle also contained stolen U.S. mail and hundreds of counterfeit checks with names matching the fraudulent IDs that Sonsteng and Villegas possessed.
Both will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The U.S. Secret Service conducted the investigation with the assistance of the U.S. Postal Inspection Service and the Portland and Corpus Christi Police Departments. Assistant U.S. Attorney Robert D. Thorpe Jr. is prosecuting the cases.
Corpus Christi Man Convicted of Possession of Child PornographyRead the Press Release
CORPUS CHRISTI, Texas - A 54-year-old Corpus Christi man has admitted he possessed child pornography, announced U.S. Ryan K. Patrick.
In February 2017, authorities were investing a file sharing program, during which they identified a computer as a potential source of at least 41 files of known images of child pornography. That computer was later linked to Jose Ivan Davila.
The next month, law enforcement executed a search warrant at his residence, at which time they seized various electronic devices. Forensic analysis on those devices revealed more than 296 images and approximately 260 videos child pornography. Two of those videos included images of young girls, approximately nine and 11 years of age, performing oral sex on an adult male.
Today, Davila admitted he reviewed and collected child pornography.
Senior U.S. District Judge John D. Rainey accepted the guilty plea today and set sentencing for April 17, 2018. At that time, Davila faces up to 20 years in federal prison and a possible $250,000 maximum fine. Upon completion of any prison term imposed, Davila 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.
Davila 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—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."
Convicted Sex Offender Arrested for Possessing Child PornographyRead the Press Release
CORPUS CHRISTI, Texas - A 61-year-old Corpus Christi man has been charged with possession of child pornography, announced U.S. Attorney Ryan K. Patrick.
Authorities took Rogelio Castaneda into custody today. He is expected to make his initial appearance before U.S. Magistrate Judge B. Janice Ellington at 2:00 p.m.
The investigation into Castaneda began after authorities discovered he had allegedly uploaded images of child pornography to his email accounts. The criminal complaint indicates Castaneda had a prior conviction related to child pornography and, as such, is required to register as a sex offender. However, he had allegedly failed to do so and was taken into custody in February 2017.
According to the charges, law enforcement seized several digital devices at the time of his arrest which led to the discovery of approximately 14 images and 470 videos of child pornography.
If convicted, Castaneda faces a minimum of 10 and up to 20 years in federal prison and a possible $250,000 maximum fine.
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 law.
Fort Worth Man Sent to Prison for Importing Nearly 30 Kilos of MethRead the Press Release
McALLEN, Texas – A 38-year-old Fort Worth area man has been ordered to federal prison following his conviction of conspiracy to import 29 kilograms of methamphetamine, announced U.S. Attorney Ryan K. Patrick. Manuel Martinez Jr. pleaded guilty Aug. 31, 2017.
Today, U.S. District Judge Micaela Alvarez, who accepted the guilty plea, handed Martinez a 120-month sentence.
On April 30, 2017, Martinez arrived at the Anzalduas Port of Entry from Mexico with his sister – Ofelia Hernandez Vasquez, 24, also of Fort Worth. Vasquez was driving the vehicle which had numerous milk and juice containers in the backseat. Upon Investigation, federal agents soon discovered 29 kilograms of methamphetamine hidden within those bottles.
Martinez admitted he assisted his sister in importing the narcotics-laden drinks from Mexico and that he did so to keep her safe from drug cartels.
In imposing the prison term, the court noted that although she believed his motivation was to protect his sister, that didn’t excuse his criminal conduct. Judge Alvarez also cited his lengthy criminal record and that as the older sibling he should have used his common sense to talk his sister out of the crime, rather than help her commit it.
Vasquez also pleaded guilty for her role in the offense and is awaiting sentencing.
Both will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations and Customs and Border Protection conducted the investigation. Assistant U.S. Attorney David A. Lindenmuth is prosecuting the case.
Drug Trafficker and Distributor Sentenced to Long Prison TermsRead the Press Release
CORPUS CHRISTI, Texas – Two members of a massive drug conspiracy have been ordered to significant terms in federal prison, announced U.S. Attorney Ryan K. Patrick. Julio Cesar Sala Stripling, 39, and Martin Lee Rodriguez, 30, both of Corpus Christi, pleaded guilty to conspiring to possess with intent to distribute methamphetamine, cocaine and cocaine base on Oct. 5, and Oct. 24, 2017, respectively.
Today, U.S. District Judge Nelva Gonzales Ramos ordered Stripling to prison for 264 months, while Rodriguez received a 120-month-term. Both will also serve five years of supervised release following completion of their sentences.
Others convicted in the case were sentenced previously. Gilbert Arredondo, 21, Carlos Bustillos Flores Sr., 47, Mario Gonzales, 20, and Roxey Lynn Trevino, 27, all of Corpus Christi, received sentences of 120, 70, 57 and 65 months, respectively. They had all previously pleaded guilty to conspiring to possess with intent to distribute more than five kilograms of cocaine and 50 grams of methamphetamine, as did Carlos Villagomez Flores Jr., 21, also of Corpus Christi. He is set for sentencing Feb. 28, 2018.
Stripling was determined to be the leader of the conspiracy and supplied numerous drug dealers in Corpus Christi with methamphetamine, crack cocaine and powder cocaine. He had been hiding in Houston during much of the conspiracy because he was wanted by law enforcement for other crimes. At the time of his arrest, he was found in possession of methamphetamine, crack cocaine and powder cocaine, as well as four firearms.
Rodriguez was one of the dealers Stripling supplied. He was found in possession of methamphetamine, cocaine, marijuana and 16 firearms - six of which were stolen - at the time of his arrest in October 2016.
Trevino assisted Stripling in the drug trafficking offense, while Gonzales, Arredondo and Flores Sr. were couriers for the organization. Flores Jr. assisted his father - Flores Sr.
With the exception of Flores Jr., who was permitted release pending his sentencing, all have been and will remain in custody pending transfer to U.S. Bureau of Prisons facilities to be determined in the near future.
Other members of the conspiracy have pleaded guilty to varying drug offenses and are also pending sentencing.
The Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Marshals Service; Texas Department of Public Safety; IRS – Criminal Investigation; San Patricio County Sheriff’s Office; and police departments in Corpus Christi, Aransas Pass and Ingleside all assisted in the joint investigation. Assistant U.S. Attorney Michael Hess is prosecuting the case.
Three Men Sent to Prison in Cocaine ConspiracyRead the Press Release
HOUSTON – Three Houston men have been ordered to federal prison following their convictions in a $1 million narcotics trafficking conspiracy, announced U.S. Attorney Ryan K. Patrick.
Robert Ashleigh Whitten, 38, pleaded guilty to conspiracy to possess with intent to distribute cocaine. Lalo Buddy Perez, 27, and Michael Anthony Patran, 29, pleaded guilty to the conspiracy and to possession of cocaine with intent to distribute.
Today, U.S. District Judge Sim Lake ordered Perez to serve a 135-month term of imprisonment, while Whitten and Patran received respective sentences of 120 and 60 months in prison. Perez and Whitten will serve five years of supervised release following completion of their prison terms. Patran will serve three years of supervised release.
In 2016, law enforcement personnel began investigating a drug trafficking organization distributing significant quantities of cocaine in the Houston area. Agents quickly confirmed that Patran and Perez were both major suppliers and distributors within the Houston and Magnolia, Texas, community. Through the course of the investigation, agents also confirmed that Patran and Perez conspired with Whitten to distribute cocaine and the proceeds from the narcotics trafficking.
On Sept. 6, 2016, authorities conducted a traffic stop on a vehicle Perez was driving with Patran as passenger. At that time, law enforcement discovered a blue Puma gym bag containing 20 individually-wrapped packages of U.S. currency, which totaled approximately $237,475. They also found an AK-47 assault rifle and Walther P99 pistol.
Shortly thereafter, law enforcement agents observed Whitten at a gas station and contacted him. He lied to the police about his identity and attempted to flee, but was captured immediately. Upon a search of his Dodge Ram truck, authorities found more than 18 kilograms of cocaine and approximately $666,638.00 in his vehicle. Some of the cocaine was open and spilled into a cooler which caused an odor that permeated the vehicle.
All three men have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorneys Julie N. Searle and Rick Bennett are prosecuting the case.
Laredoans Sent to Prison for Rollover Incident that Led to DeathRead the Press Release
LAREDO, Texas – Three smugglers have been sentenced to federal prison for transporting illegal aliens that resulted in one death, announced U.S. Attorney Ryan K. Patrick. One alien died and two others received injuries resulting from a vehicle rollover.
Guillermo Venegas, 19, pleaded guilty Sept. 1, 2016, while Edgardo Diaz, 20, and Antonio Aguilar, 20, entered their pleas April 6 and June 24, 2016, respectively.
Today, U.S. District Judge Diana Saldaña ordered Venegas to serve 70 months, while Diaz and Aguilar each received 87-month-terms of federal imprisonment. Venegas, Diaz and Aguilar will also serve supervised release terms of three, five and four years, respectively, following their sentences. In handing down the sentences, Judge Saldaña noted that it was unfortunate the defendants had chosen to become involved in such a serious crime which resulted in the death of one undocumented alien and injuries to others. After statements from each defendant expressing remorse for the events, the court noted that each attempted to downplay their roles by recruiting other persons and that they demonstrated poor judgment in recruiting or involving juveniles. On several occasions, Judge Saldaña reminded the defendants that “the reality is that someone died.”
At the time of their pleas, the three admitted to conspiring to transport three aliens to Laredo. Aguilar recruited Venegas to transport the aliens. Venegas then recruited a juvenile to drive and use his parent’s van as the load vehicle.
During the early evening of Jan. 31, 2016, the three defendants set out on Mines Road in three separate vehicles to locate and pick up aliens who had just crossed from Mexico by wading the Rio Grande River. Diaz and Aguilar scouted for law enforcement in their respective vehicles, while communicating with Aguilar who was in the van providing directions to the juvenile driver.
After arriving at the pick-up location and determining the area was clear of law enforcement, Venegas and the juvenile picked up three aliens and drove towards Laredo, while Diaz and Aguilar continued to monitor contact with law enforcement.
Border Patrol (BP) agents in marked units encountered the van, but Venegas and the juvenile failed to stop, attempted to cross the median at a high rate of speed and overturned. Venegas and two alien passengers were injured, while another alien died at the scene.
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.
The Webb County District Attorney’s Office prosecuted the juvenile driver and two others.
BP, Immigration and Customs Enforcement’s Homeland Security Investigations, Texas Department of Public Safety, Laredo Police Department and the Webb County Medical Examiner conducted the investigation. Assistant U.S. Attorney Homero Ramirez prosecuted the case.
Co-Conspirator Sentenced in Multi-Million Bank Fraud SchemeRead the Press Release
HOUSTON – A Houston-area man has been ordered to federal prison for perpetrating a scheme that caused a loss of more than $4 million to several local banks, announced U.S. Attorney Ryan K. Patrick. Gregory Roberson, 65, of Missouri City, pleaded guilty June 14, 2016.
Today, U.S. District Judge Gray Miller, who accepted the guilty plea, handed Roberson a 24-month sentence and ordered him to pay $3,081,942.14. The ringleader of the scheme, Andre Chenier, 44, of Houston, had previously been sentenced to 48 months in federal prison and ordered to pay more than $4.5 million in restitution. Both will also serve three years of supervised release following completion of their sentences.
From 2004 to 2012, Chenier obtained multi-million dollar commercial loans from several Houston-area banks by submitting false and fraudulent documents, including Bank of Texas and Third Coast Bank. The loan applications included falsified financial statements and fake income tax returns and were obtained using the Social Security numbers of identity theft victims. Chenier ultimately defaulted on both of these loans and others, resulting in a loss of $4,581,942. Chenier represented to banks that he owned various technology companies, when in fact the companies were fictitious and Chenier was merely living off loan proceeds.
Roberson assisted Chenier in the scheme by preparing falsified income tax forms and other documents to help Chenier obtain millions in commercial loans.
He was permitted to remain on bond pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI, Federal Deposit Insurance Corporation – Office of Inspector General and IRS – Criminal Investigation conducted the investigation. Assistant U.S. Attorney Belinda Beek is prosecuting the case.
Synthetic Narcotics and Firearms Charges Result in Significant Prison SentencesRead the Press Release
CORPUS CHRISTI, Texas - Five members of a local drug trafficking organization have been ordered to federal prison following their varying convictions on drug and/or firearms charges, announced U.S. Attorney Ryan K. Patrick. Sentences ranged from 138-420 months in federal prison.
Longino Castillo, 27, and Isaiah Martinez, 20, both pleaded guilty to conspiracy to possess with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime. Castillo was also convicted of possession of a machine gun conversion device. Michael Molina, 25, Justin Ray Flores, 36, and Manuel Garcia, 31, all pleaded guilty to conspiracy to possess with intent to distribute a synthetic cannabinoid. Molina further admitted to possession of a firearm in furtherance of a drug trafficking crime and felon in possession of a firearm. All are residents of Corpus Christi.
At a hearing that concluded late Wednesday, Jan. 10, Senior U.S. District Judge Hayden Head sentenced all five defendants to federal prison.
Castillo was ordered to serve a total of 420 months in prison. He received a 360 months for the methamphetamine conspiracy and 120 months possessing the machine gun conversion device to run concurrently. The court also imposed a 60-month sentence for possession of a firearm in furtherance of a drug trafficking crime which will run consecutive to the other terms imposed.
Martinez was sentenced to a total of 240 months in prison - 180 months for the methamphetamine conspiracy in addition to a consecutive 60 months for the firearms charge.
Molina received a 78-month sentence for the conspiracy to possess with intent to distribute a synthetic cannabinoid as well as a 60-month consecutive term for possession of a firearm in furtherance of a drug trafficking crime for a total of 138 months in prison.
Flores and Garcia received respective terms of 138 and 144 months in federal prison.
At the hearing, the court heard testimony regarding the manner in which authorities handle newly emerging synthetic narcotics, the adverse effects of those substance and imminent hazard they present to the public safety. Further testimony was provided about the large number of firearms and other items that were seized as a result of the investigation, some of which include an unregistered machine gun conversion device, several homemade suppressors, explosive devices, ammunition and body armor. In addition, the court heard about the impact synthetic cannabinoids have on the local community.
In handing down the sentence, Judge Head noted that the common practice of referring to synthetic cannabinoids as “legal” or “synthetic marijuana” misleads the public about the true dangers of the substances. The court further acknowledged the significant impact of synthetic narcotics, specifically the burden it places on law enforcement and the community.
Between May 2016 and May 2017, local law enforcement officers and federal agents conducted numerous search warrants at several residences and area hotels related to the distribution of narcotics by a group of individuals identifying themselves in online social media as “Team GoHard.” The investigation revealed that the group would frequently rent hotel rooms and move from place to place as a way to distribute the narcotics and evade law enforcement.
At each of the locations, law enforcement seized different types and quantities of controlled substances as well as multiple firearms. Laboratory analysis confirmed the presence of scheduled substances, methamphetamine, heroin, cocaine base and marijuana. In addition, laboratory analysis confirmed the presence of 5F-MDMB-PINACA and FUB-AMB which are controlled under the Controlled Substance Analog Act.
In custody since their arrests, each defendant will remain in custody and serve their sentences at a U.S. Bureau of Prisons facility to be designated in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Corpus Christi Police Department conducted the investigation. Assistant U.S. Attorney Lance Watt is prosecuting the case.
Meth Importer Heads to PrisonRead the Press Release
LAREDO, Texas – A Nuevo Laredo man has been sentenced to federal prison for attempting to import methamphetamine into the United States, announced U.S. Attorney Ryan K. Patrick. Edgar Contreras, 22, pleaded guilty Sept. 7, 2017.
Today, U.S. District Judge Marina Garcia Marmolejo ordered he serve 72 months in federal prison. Not a U.S. citizen, he is expected to face deportation proceedings following his release from prison. In handing down the sentence, the court noted his youth, lack of criminal history and his minor role in the offense.
At the time of his plea, Contreras admitting he conspired to import and imported nearly 18 kilograms of methamphetamine from Mexico. The drugs were being smuggled in bottles of motor oil.
On July 4, 2017, Contreras arrived at the Lincoln/Juarez Port of Entry in Laredo driving a Chrysler Sebring. He was referred to secondary inspection, at which time authorities discovered 15 bottles of motor oil inside the vehicle behind the front seats. Authorities recognized the bottles from previous seizure attempts as well as inconsistencies with the bottles themselves. They were field tested and found to contain 17.80 kilograms of liquid methamphetamine.
At first, Contreras claimed to have no knowledge of the narcotics, but later admitted he had been hired to transport the liquid methamphetamine to Laredo for delivery to an unknown associate in exchange for $2,000.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney José Angel Moreno prosecuted the case.
Jury Convicts Local Man in Drug and Money Laundering ConspiracyRead the Press Release
CORPUS CHRISTI, Texas – A 54-year-old Robstown resident has been found guilty of conspiracy to possess with intent to distribute cocaine and heroin as well as conspiracy to launder narcotics proceeds, announced U.S. Attorney Ryan K. Patrick. A jury returned the verdicts today against Rolando Hinojosa following approximately an hour of deliberation and two days of trial.
The jury heard that an undercover officer had begun purchasing heroin from the organization in April 2016. Members of the conspiracy testified that the organization was involved in two types of narcotics trafficking - local, large-scale heroin distribution in Nueces County and interstate distribution of kilogram quantities of cocaine. Hinojosa was the source of supply for both types of narcotics.
The evidence included approximately $60,000 in illegal narcotics currency which authorities discovered in Hinojosa’s work truck when he was arrested Oct. 4, 2017. On the same date, agents also found approximately $36,000 in illegal narcotics currency in his home.
The jury further heard testimony regarding a pre-paid telephone found on Hinojosa’s bedside table which demonstrated the trail of cocaine from Hinojosa to a Kentucky distributor. From further phone analysis, authorities discovered a narcotics courier who had been arrested in August 2017 returning from Kentucky with $76,000 in narcotics currency intended for Hinojosa.
That courier testified at trial that he successfully delivered several kilograms of cocaine to Kentucky in August 2017 after receiving it from Hinojosa.
Hinojosa’s defense was that the government had not proven its case beyond a reasonable doubt. The jury disagreed and found him guilty on all counts.
Senior U.S. District Court Judge Janis Graham Jack presided over the trial and set sentencing for April 9, 2018. At that time, Hinojosa faces up to life in prison on the drug charges and a possible $10 million fine, while the money laundering conspiracy carries a maximum of 20 years and a $500,000 fine. Previously released on bond, he was ordered into custody following the verdict where he will remain pending that hearing.
The Drug Enforcement Administration and the Texas Department of Public Safety conducted the investigation. Assistant U.S. Attorney Jon Muschenheim is prosecuting the case.
Texas Mayor and Owners of Health Care Company Charged with Health Care Fraud, Money Laundering and ObstructionRead the Press Release
Four individuals, including a Texas mayor who was a licensed physician and medical director, and three owners of a health care company, were charged in an indictment unsealed today for their roles in a $150 million health care fraud and money laundering scheme. Three of the defendants were also charged with counts relating to obstructing justice and providing false statements.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Ryan K. Patrick of the Southern District of Texas, Special Agent in Charge Christopher Combs of the FBI’s San Antonio Field Office and Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Region made the announcement.
Rodney Mesquias, 47, of San Antonio, Texas; Henry McInnis, 47, of Harlingen, Texas; Jose Garza, 40, of Harlingen, Texas; and Franciso Pena, 82, of Laredo, Texas, were charged in an 11-count indictment filed in the Southern District of Texas. They were each charged with one count of conspiracy to commit health care fraud and one count of conspiracy to commit money laundering. Mesquias and McInnis were charged with six counts of health care fraud, and Garza and Pena were each charged with one count of health care fraud. Pena was also charged with one count of false statements and one count of obstruction of a health care investigation. Mesquias and McInnis were each charged with one count of obstruction of justice.
As set forth in the indictment, from 2009 through the filing of the indictment, Mesquias owned and controlled the Merida Health Care Group (Merida Group), a collection of health care entities located throughout the State of Texas that provided hospice and health care services. McInnis and Garza helped control, manage and oversee Mesquias’s various entities. Pena, a licensed physician, served as the Mayor of Rio Bravo, Texas, and as a medical director for the Merida Group’s affiliated entities.
According to allegations in the indictment, Mesquias, McInnis, Garza and Pena participated in a health care fraud conspiracy that involved over $150 million in Medicare billings for hospice and home health services. Mesquias, McInnis and Garza caused kickbacks and bribes to be paid to medical directors, including Pena, for the Merida Group’s affiliated entities in exchange for certifying that patients qualified for services when, in fact, they did not, and for referring patients for such services. Mesquias, McInnis, Garza and Pena also fraudulently kept patients on hospice services for multiple years in order to increase revenue from Medicare.
The indictment also alleges that the scheme involved laundering the proceeds of the fraud by, for example, using nominees to conceal the identifies of the true beneficial owners of the Merida Group’s affiliated entities, and causing profit distributions to be issued to the nominees to further conceal and disguise control of the fraud proceeds. The indictment further alleges that Mesquias and McInnis used proceeds derived from the scheme to purchase expensive vehicles such as a Porsche, expensive jewelry, luxury clothing from high-end retailers such as Louis Vuitton, exclusive real estate and season tickets for premium seating to see the San Antonio Spurs.
The indictment alleges that Pena gave a false statement to the FBI and obstructed a health care investigation. According to the allegations, a confidential source (CS) who worked in the health care industry met with Pena at City Hall, the Office of the Mayor for Rio Bravo, and elsewhere. During these meetings, the CS allegedly paid Pena a total of $5,000 in cash kickbacks for illegal referrals of hospice patients. In addition, during the course of the investigation, Pena allegedly told a cooperating witness that, with respect to hospice patients, “the way you make money is by keeping them alive as long as possible.” Thereafter, Pena was interviewed by the FBI and denied ever accepting kickbacks in exchange for patient referrals. After the FBI interview, Pena then allegedly contacted the CS and directed the CS to mislead the FBI in the event that the CS was interviewed about the cash kickbacks that Pena received in exchange for the illegal patient referrals.
The indictment also alleges that Mesquias and McInnis obstructed justice by producing false and fictitious records to a federal grand jury. As set forth in the indictment, a federal grand jury issued a subpoena to the Merida Group for specific medical records. In response, Mesquias and McInnis allegedly instructed their co-conspirators to manufacture false records and provide them to the federal grand jury in order to obstruct the grand jury’s investigation.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the HHS-OIG’s McAllen Field Office, the FBI’s San Antonio Division, including the Laredo and McAllen Resident Agency Offices, and the Texas Health and Human Services Commission. Trial Attorney Kevin Lowell of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Andrew Swartz of the Southern District of Texas are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. The Medicare Fraud Strike Force operates in nine locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,500 defendants who collectively have falsely billed the Medicare program for over $12.5 billion.
Laredo Man Sentenced for Alien Harboring ConspiracyRead the Press Release
LAREDO, Texas – A 43-year-old resident of Laredo has been ordered to federal prison for role in an alien smuggling incident which led to the kidnapping of multiple illegal aliens, announced U.S. Attorney Ryan K. Patrick. Jesus Osorio pleaded guilty Aug. 7, 2017, admitting he conspired to harbor and transport undocumented aliens in which the defendant caused serious bodily injury to another person.
Today, U.S. District Judge Marina Garcia Marmolejo handed Osorio a 87-month sentence which will be immediately followed by three years of supervised release. He was further ordered to complete 150 hours of community service. In handing down the sentence, Judge Marmolejo noted that during the conspiracy, some of the aliens were threatened with weapons and that at least one suffered severe bodily injury during an eventual kidnapping.
On July 5, 2016, law enforcement responded to an incident at a residence in Laredo where eight undocumented aliens were kidnapped and held hostage against their will. They had previously made arrangements to be smuggled into the United States. After their arrival, they stayed at a Laredo residence for two weeks.
They were then transported to a second location where Angel Alexis Diaz, 20, Jose Israel Diaz, 43, and Julio Osorio, 40, all of Laredo, held them hostage. The victims reported being beaten, forced to undress and ordered to contact family members to pay a ransom for their release.
Through further investigation, authorities learned Jesus Osorio was the man who drove the aliens from the stash house to the second residence where they were eventually kidnapped. During the course of the offense, one of the undocumented aliens was seriously injured and required hospitalization.
Jesus Osorio will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Angel Diaz, Jose Diaz and Julio Osorio were convicted of conspiracy to kidnap illegal aliens and received sentences of 262-360 months in prison.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of the Laredo Police Department and U.S. Border Patrol. Assistant U.S. Attorney Christopher A. dos Santos is prosecuting the case.
Houston Man Pleads Guilty to Wire Fraud Scheme Using Children’s Social Security NumbersRead the Press Release
HOUSTON – A 35-year-old Houston resident has pleaded guilty to two counts of wire fraud and one count of aggravated identity theft, announced U.S. Attorney Ryan K. Patrick.
From on or about July 27, 2016, through approximately May 19, 2017, Amir Ali Bey enacted a scheme to obtain money, cars and other luxury items by using the identities of other individuals. Bey created a number of aliases, including the name Daniel Isaiah Murray, to create credit profiles that were under his exclusive ownership and control. Bey then utilized these credit profiles to apply for various lines of credit to obtain cash.
To create these profiles, Bey would intentionally steal the Social Security numbers of children, who typically do not monitor their credit histories in the same manner as adults. Bey would then link the stolen Social Security numbers to his name, or to another alias names under his exclusive ownership and control, by adding them as authorized users on existing credit card accounts in good standing. By doing so, he created a profile and credit history for those names with credit reporting agencies such as Experian.
To further facilitate the scheme, Bey would use fraudulent drivers’ licenses and fake pay stubs, and rent mailboxes at UPS stores using fraudulently-obtained identifications.
Law enforcement conducted a search of Bey’s apartment in May 2017, at which time they found multiple fraudulent identification documents, credit cards, bank statements and other items used the facilitate the wire fraud scheme.
U.S. District Judge Kenneth Hoyt accepted the plea today and set sentencing for March 19, 2018. At the time, up to 20 years for the wire fraud and a mandatory 24 months for the aggravated identity theft which must be served consecutively to any other prison term imposed. Both convictions also carry a possible $250,000 maximum fine. Bey was permitted to remain on bond pending that hearing.
The U.S. Postal Inspection Service conducted the investigation. Assistant U.S. Attorney Julie N. Searle is prosecuting the case.
Former CBP Officer Sentenced to Prison for Alien SmugglingRead the Press Release
McALLEN, Texas – A 55-year-old man who formerly resided in Weslaco has been ordered to prison following his conviction of one count of conspiracy to transport aliens within the United States, announced U.S. Attorney Ryan K. Patrick. Former Customs and Border Protection (CBP) officer Sabas Salinas pleaded guilty Nov. 1, 2017.
Today, U.S. District Judge Micaela Alvarez handed Salinas a 24-month sentence to be immediately followed by three years of supervised release. In handing down the sentence, Judge Alvarez noted that Salinas was entrusted with authority from the people - the citizens of the community. She noted that one of his specific job responsibilities was to ensure that individuals who were not authorized to come into the U.S. were prevented from doing so, and he did the exact opposite. Additionally, in spite of his good background, and regardless of whether he was getting paid for his actions, she found his participation in the offense to be corrupt.
Salinas had admitted that while on duty at the Progreso Port of Entry, he was going to allow Juana Sifuentes-Villagomez, 48, a lawful permanent resident of Donna, to transport an illegal alien into the U.S.
On Aug. 14, 2017, Sifuentes-Villagomez arrived at the Progreso Port of Entry with Asiano Uresti-Segundo, 46, of Reynosa, Tamaulipas, Mexico. Salinas was attempting to conduct the initial inspection and planned to allow them entry in to the U.S., knowing Uresti-Segundo was an illegal alien and not permitted to do so. However, other CBP officers discovered Uresti-Segundo was a citizen of Mexico who had been previously deported and did not have permission to re-enter the country. Both Sifuentes-Villagomez and Uresti-Segundo were arrested that day.
The investigation led to the discovery that Uresti-Segundo was going to pay Sifuentes-Villagomez for smuggling him illegally into the U.S. through a port of entry and transporting him to Donna.
Salinas was later arrested for his part in the conspiracy on Sept. 14, 2017.
Salinas has been and will remain in federal custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Sifuentes-Villagomez pleaded guilty to one count of conspiracy to transport aliens within the United States and is scheduled to be sentenced on Feb. 28, 2018. Uresti-Segundo entered a guilty plea to unlawfully attempting to enter the U.S. after being previously removed and is scheduled to be sentenced on Jan. 11, 2018. They also remain in custody pending those hearings.
The Department of Homeland Security – Office of Inspector General conducted the investigation with the assistance of Immigration and Customs Enforcement’s Homeland Security Investigations and CBP – Office of Field Operations. Assistant U.S. Attorney Linda Requénez prosecuted the case.
Dental Management Company Benevis and its Affiliated Kool Smiles Dental Clinics to Pay $23.9 Million to Settle False Claims Act Allegations Relating to Medically Unnecessary Pediatric Dental ServicesRead the Press Release
WASHINGTON – The Justice Department announced today that it has settled False Claims Act allegations against dental management company Benevis LLC (formerly known as NCDR LLC) and more than 130 of its affiliated Kool Smiles dental clinics for which Benevis provides business management and administrative services. Under the agreement, Benevis and the Kool Smiles clinics will pay the United States and participating states a total of $23.9 million, plus interest, to resolve allegations that they knowingly submitted false claims for payment to state Medicaid programs for medically unnecessary dental services performed on children insured by Medicaid.
“Billing Medicaid programs for dental procedures that are not necessary contributes to the soaring costs of healthcare,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “When healthcare providers put vulnerable patients at risk by performing medically unnecessary procedures to achieve financial goals, we will take action.”
The United States alleged that between January 2009 and December 2011, Benevis and Kool Smiles clinics located throughout 17 states knowingly submitted false claims to state Medicaid programs for medically unnecessary pulpotomies (baby root canals), tooth extractions, and stainless steel crowns, in addition to seeking payment for pulpotomies that were never performed. The United States alleges that Kool Smiles clinics routinely pressured and incentivized dentists to meet production goals through a system that disciplined “unproductive” dentists and awarded “productive” dentists with substantial cash bonuses based on the revenue generated by the procedures they performed. According to the government’s allegations, Kool Smiles clinics ignored complaints from their own dentists regarding overutilization. In addition, the United States further alleged that Kool Smiles clinics located in Texas knowingly submitted false claims to the Texas Medicaid Program for First Dental Home (FDH), a program intended to provide a comprehensive package of dental services aimed at improving the oral health of children under three years of age. These clinics are alleged to have submitted false claims for FDH services that were not fully provided.
Of the $23.9 million to be paid by Benevis and its affiliated Kool Smiles clinics, the federal government will receive a total of $14,244,073.49, plus interest, and a total of $9,655,926.51, plus interest, will be returned to individual states, which jointly funded improper claims submitted to state Medicaid programs.
"The allegations in these cases are particularly egregious because they involved medically unnecessary dental services performed on children,” said U.S. Attorney John H. Durham for the District of Connecticut. “Exploiting needy children for financial gain is inexcusable. The U.S. Attorney’s Office in Connecticut is committed to aggressively pursuing health care providers that submit fraudulent claims to government health care programs.”
The government’s investigation was initiated by five lawsuits filed under the whistleblower provision of the False Claims Act, which permits private citizens to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. These cases are currently pending in the District of Connecticut and the Western District of Texas. As part of today’s resolution, three of the whistleblowers—former Kool Smiles employees Adam Abendano, Poonam Rai, and Robin Fitzgerald—will receive payments totaling more than $2.4 million from the federal share of the settlement.
“When providers accept federal funds for reimbursement, they have a duty and responsibility to provide the best care possible to the patient, especially when their patients are economically disadvantaged children,” said U.S. Attorney Ryan K. Patrick for the Southern District of Texas. “The United States Attorney’s Office for the Southern District of Texas will aggressively prosecute healthcare providers who fail to provide care as required when it adversely affects the taxpayers.”
“The conduct of Kool Smiles reached across state lines to impact many patients, many of them vulnerable children,” said U.S. Attorney Dana J. Boente for the Eastern District of Virginia. “I want to thank our law enforcement partners for their tireless effort and dedication in bringing about this nationwide resolution.”
“Today’s settlement sends a very clear signal: Fraud in the federal healthcare system will not be tolerated,” said U.S. Attorney John F. Bash for the Western District of Texas. “Especially when that fraud involves performing unnecessary procedures on kids—here, unnecessary baby root canals and tooth extractions, among other procedures—we will not hesitate to use every tool at our disposal to punish those who break the law.”
“It is intolerable when health care companies seek to boost profits by defrauding Medicaid and exploiting children," said Special Agent in Charge Phillip M. Coyne, HHS-OIG. "Systematically performing and billing for medically unnecessary dental procedures undermines the well-being of these young patients, corrupts the impartiality of medical decision-making, and diverts money from taxpayer-funded health care programs designed to pay for legitimate medical needs.”
The settlement with Benevis and its affiliated Kool Smiles clinics was the result of a collaborative effort among federal and state agencies. The Commercial Litigation Branch of the Justice Department’s Civil Division and the U.S. Attorney’s Offices for the District of Connecticut, Southern District of Texas, Eastern District of Virginia, and Western District of Texas handled the cases, with substantial assistance from the National Association of Medicaid Fraud Control Units (NAMFCU). The Civil Division and NAMFCU coordinated the nationwide investigation, which was conducted by the Office of Inspector General for the Department of Health and Human Services, the Department of Defense Criminal Investigative Service, and NAMFCU.
The cases are captioned United States, et al., ex rel. Abendano v. NCDR, LLC, et al., 3:10-cv-1100 (JBA) (D. Conn.); United States, et al., ex rel. Greenwald v. Kool Smiles Dentistry PC, et al., 3:10-cv-1100 (JBA) (D. Conn.); United States, et al., ex rel. Rai, et al. v. Kool Smiles Dentistry PC, et al., 3:17-cv-834 (JBA) (D. Conn.); United States, et al., ex rel. Bowne v. KS-VAP, PC, et al., 3:16-cv-369 (JBA) (D. Conn.); and United States, et al., ex rel. Alves, et al. v. NCDR, LLC, et al., SA-13-CV-0760H (W.D. Tex.). The claims resolved by this settlement are allegations only, and there has been no determination of liability.
Two Illegal Aliens Handed Significant Sentence for Trafficking MarijuanaRead the Press Release
BROWNSVILLE, Texas – Two undocumented aliens from Mexico have been ordered to federal prison for possession with intent to distribute more than 1000 kilograms of marijuana, announced U.S. Attorney Ryan K. Patrick. Oscar Erick Calvillo-Lores, 37, of Reynosa, Tamulipas, Mexico, and Jose Manuel Portillo-Guerrero, 42, of Valadeces, Tamulipas, Mexico, pleaded guilty May 2, and March 28, 2017, respectively.
Today, U.S. District Judge Andrew Hanen, who accepted the guilty pleas, handed Calvillo-Lores a 10-year sentence, while Portillo-Guerrero was ordered to serve a total of 192 months in federal prison. Not U.S. citizens, both are expected to face deportation proceedings upon completion of their sentences. Portillo-Guerrero’s sentence includes upward adjustments or increases in his calculated sentencing guideline range because he was found to be a leader within the drug trafficking organization and because he was found to have obstructed justice during the prosecution of the case.
Calvillo-Lores and Portillo-Guerrero were two of seven charged in a multi-state drug trafficking conspiracy.
On Aug. 10, 2011, agents approached a suspected narcotics stash house in Mission and found Portillo-Guerrero, Calvillo-Lores and Jose Alejandro Aldava at the residence. Agents arrested all three upon the discovery of 2,120 kilograms (4,464 pounds) of marijuana within the garage of the residence. They also found marijuana hidden within concreate pillars and some hidden within a trailer inside the garage.
Four others – Ramiro Espinoza, 47, of Brownsville, Moises Ramirez, 34, of Brownsville, Javier Alejandro Aldava, 31, an illegal alien from Reynosa, Tamaulipas, Mexico, and Herber Bienvenido Tejada, 36, of Lodi, New Jersey - were previously sentenced to a terms of 81, 60, 52 and 48 months imprisonment, respectively. Espinoza, Ramirez and Tejada had pleaded guilty to conspiracy to cocaine trafficking, while Javier Aldava entered his plea to trafficking marijuana.
Arnoldo Bermea, 39, of Mission pleaded guilty to conspiracy to commit cocaine trafficking and is scheduled to be sentenced Feb. 8, 2018.
All seven conspirators charged were part of a multi-state drug trafficking and money laundering organization that had existed since 2003. The drug trafficking organization, based out of the Rio Grande Valley, would hire truck drivers to haul loads of produce to northern states with ton quantities of marijuana and multi-kilogram quantiles of cocaine hidden in false compartments. Drug proceeds would then be transported back to the Rio Grande Valley.
Calvillo-Lores and Portillo-Guerrero 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 led the nearly three-year Organized Crime Drug Enforcement Task Force investigation with the assistance of IRS - Criminal Investigation; Immigration and Customs Enforcement’s Homeland Security Investigations; Bureau of Alcohol, Tobacco, Firearms and Explosives; FBI; Hidalgo County High Intensity Drug Trafficking Area task force; Border Patrol and the Brownsville Police Department. Assistant U.S. Attorney Angel Castro is prosecuting the case.
Mexican Man Pleads Guilty to Importing MethRead the Press Release
LAREDO, Texas – A 35-year-old resident of Pesqueria, Nuevo Leon, Mexico, has entered a guilty plea to conspiracy and to importing methamphetamine into the United States from Mexico, announced U.S. Attorney Ryan K. Patrick.
Ricardo Muñoz-Vega admitted transporting methamphetamine across the Lincoln-Juarez Bridge in Laredo. On Oct. 11, 2017, he crossed the bridge in a pick-up truck and was referred to secondary inspection. There, authorities discovered 29 bundles of narcotics in the vehicle’s wheels and another two bundles in the rear tire compartment.
The methamphetamine had a net weight of 56.03 kilograms and a purity of 98%.
Sentencing will be set before U.S. District Judge Diana Saldaña at a later date. At that time, Muñoz-Vega faces a minimum of 10 years and up to life in prison as well as possible $10 million fine.
Muñoz-Vega has been and will remain in custody pending that hearing.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of Customs and Border Protection. Assistant U.S. Attorney Michael Bukiewicz is prosecuting the case.
Local Tax Return Preparer Sent to Prison for Fraudulent Refund SchemeRead the Press Release
HOUSTON – A tax return preparer who operated a local business under the name “Postal Tax Services” has been ordered to federal prison for willfully aiding and assisting in the preparation and presentation of a false U.S. Individual Income Tax Return, announced U.S. Attorney Ryan K. Patrick along with Assistant Special Agent in Charge Ramsey Covington of IRS-Criminal Investigation (CI). Yomi Michael John pleaded guilty May 11, 2017.
Today, U.S. District Gray H. Miller handed John a sentence of 12 months and one day to be immediately followed by one year of supervised release. He was further ordered to pay $212,853 in restitution to the IRS.
“John’s sentencing today will punish him for cheating the government and defrauding his clients and the tax-paying public,” said Covington. “IRS special agents will continue to enforce the nation's tax laws while protecting our tax system from personal greed.”
According to court records, John was in the business of preparing income tax returns and operated that business under “Postal Tax Services” on Veterans Memorial Drive in Houston during calendar years 2010 through 2012. John admitted he willfully added numerous false deductions, credits and business losses to 61 client income tax returns without their knowledge in order to inflate refunds by approximately $214,413. According to the plea agreement, John’s motive was to build and maintain a reputation for getting large refunds to increase his client base, which would generate more fees.
John was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The Houston office of IRS – CI conducted the investigation. Assistant U.S. Attorney Jimmy Sledge Jr. is prosecuting the case.
Jury Convicts Corpus Christi Man for Online Solicitation of MinorsRead the Press Release
CORPUS CHRISTI, Texas – A federal jury has returned a guilty verdict against a 42-year-old Corpus Christi man on child exploitation charges, announced U.S. Attorney Ryan K. Patrick. The jury deliberated for approximately 20 minutes following less than two days of trial before convicting Spencer Salcedoof two counts of online solicitation of minors and two counts of transfer of obscene material to minors
According to the evidence presented at trial, Salcedo was communicating with a person he believed was the mother of two minor female children - ages 14 and 11. In reality, he was actually talking to an undercover police officer. During the course of the communications, he made arrangements to meet and engage in sexual activity with the mother’s children. Salcedo also sent sexually explicit photographs through text messages intended for the children.
He was apprehended as he arrived at the designated meeting place. At the time of his arrest, Salcedo had condoms with him and candy for the children.
At trial, the jury heard from an agent who testified that Salcedo gave a conflicting statement as to why he showed up to the meeting location.
U.S. District Judge Nelva Gonzales Ramos will impose sentencing on April 4, 2018. At that time, Salcedo faces a minimum of 10 years and up to life in federal prison for the online solicitation charge and up to 10 years in federal prison for the transfer of obscene material to minors. Upon completion of any prison term imposed, Salcedo also faces a maximum of life on supervised release for all charges during which time the court can impose a number of special conditions designed to protect children and prohibit the use of the Internet.
Previously released on bond, Salcedo was remanded to custody following the verdict where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations and the Corpus Christi Police Department - Internet Crimes Against Children Task Force conducted the investigation as part of Operation Hidden Predator, a joint investigation targeting individuals involved in online solicitation of minors.
Assistant U.S. Attorney Hugo R. Martinez and Jeff S. Miller prosecuted the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Ryan K. Patrick Sworn in as 23rd United States Attorney for the SDTXRead the Press Release
HOUSTON – Chief U.S. District Judge Lee H. Rosenthal has sworn in Ryan K. Patrick as the 23rd presidentially-appointed United States Attorney for the Southern District of Texas (SDTX). He began his duties immediately. As the United States Attorney for the SDTX, Patrick is the chief law enforcement officer responsible for prosecuting and defending the interests of the United States in the seventh largest district in the nation.
Patrick, of Houston, took the oath of office at 8:45 a.m. today before an audience including Judge Rosenthal’s staff, federal court personnel and Assistant U.S. Attorneys and staff. Upon administering the oath, Judge Rosenthal noted his energy, commenting that as soon as receiving his Presidential commission, Patrick called her saying, “I’m ready. When can we do this?”
Information about a possible media availability will be provided at a later date.
President Trump nominated Patrick to serve as U.S. Attorney for this district on Nov. 2, 2017, upon the recommendation of U.S. Senators John Cornyn and Ted Cruz. The full Senate unanimously confirmed his appointment on Dec. 20, 2017.
Patrick began his a career as an Assistant District Attorney in Harris County. During that time, he was responsible for the prosecution of narcotics trafficking cases and illegal pill mill operations in the Major Offenders Division.
In 2012, then Texas Governor Rick Perry appointed Patrick to be a judge at the 177th state district court. He was elected to a full four-year-term in 2012.
Prior to his current position, Patrick was in private practice, serving as the managing partner of The Law Office of Ryan Patrick PLLC and senior counsel with HooverSlovacek LLC where he focused on felony criminal defense work.
In swearing Patrick in today, Judge Rosenthal noted the job would not be an easy one, stating that the SDTX is not an easy district. She explained that the SDTX is on the front lines due to geography, time and politics which was never more true than it is now. She further commented that the job is one of the most challenging out there, but told the audience that “he is good to go!”
The SDTX, 7th largest in terms of personnel, typically prosecutes more cases against more defendants than most other USAOs nationwide, representing 43 counties and 8.3 million people and covering 44,000 square miles. This district currently comprises seven U.S. District Court divisions with federal district courts in Houston, Galveston, Victoria, Corpus Christi, Brownsville, McAllen and Laredo. The United States Attorney's office, headquartered in Houston, has five additional branch offices in Corpus Christi, Brownsville, McAllen, Laredo and Victoria to staff all seven divisions.
Long-Time Drug Trafficking Fugitive Ultimately Ordered to Federal PrisonRead the Press Release
HOUSTON – After 14 years on the run, a 43-year-old Roma man has been ordered to prison following his conviction for conspiring to possess and possession with intent to distribute more than 1000 kilograms of marijuana, announced U.S. Attorney Ryan K. Patrick. Romeo Eduardo Barrera pleaded guilty Oct. 23, 2017.
Today, U.S. District Judge Kenneth Hoyt handed Barrera a 135-month prison sentence to be immediately followed by five years of supervised release. At the hearing, the court found Barrera’s 14-year run warranted an upward adjustment for obstruction of justice and overruled Barrera’s objections to not receiving credit to reduce his sentencing range for acceptance of responsibility. In handing down the sentence, Judge Hoyt noted that the tragedy of this case is that had he not fled and resolved the matter in 2002 when he was much younger, he would have completed his sentence by now and had many years to spend with his family.
A federal grand jury indicted Romeo Eduardo Barrera in September 2002 for federal drug law violations. He was Initially released on bond, but failed to appear for a pretrial conference before Judge Hoyt in Houston in January 2003. A warrant issued for his arrest.
In late May 2017, Barrera was involved in an automobile accident in the Rio Grande Valley. Local law enforcement present at the scene of the accident arrested him upon discovering the outstanding warrant. Barrera made his initial appearance in the McAllen Division and was transferred to Houston to face the long-pending charges. He made his appearance before Judge Hoyt who revoked his previous bond and ordered he be detained pending further criminal proceedings.
The charges against Barrera arise from an investigation initiated in March 6, 2002. At that time, authorities located suspected narcotics traffickers from the Rio Grande Valley at a Houston-area Holiday Inn Express Hotel. Thereafter, law enforcement conducted surveillance during which time they observed Barrera arrive at the hotel and eventually leave with two others. Surveillance of that vehicle ultimately lead investigating officers to a residence on Northfield in Houston. There, investigating agents watched Barrera and seven other defendants entering and exiting the residence, using trash cans to remove large bales of marijuana and load them into a van parked nearby.
When officers approached, Barrera fled the scene along with all but one of the others. Authorities arrested Barrera shortly thereafter on a nearby street. During the chase, Barrera held 386.6 grams of marijuana wrapped in clear cellophane and a yellow sheet of paper with figures written on it.
In the Northfield residence, officers also found 31 cellophane-wrapped bales of marijuana weighing a total of approximately 1644 pounds along with an additional 154 grams of marijuana, 30 used and new duffle bags, two digital scales, wrapping materials, calculators, drug ledgers and three firearms.
In the parked van, investigating officers also found and seized 19 cellophane-wrapped bales of marijuana with an approximate total weight of 928.55 pounds.
Barrera will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Harris County Sheriff’s Office, Houston Police department and the FBI conducted the investigation. Assistant U.S. Attorney Nancy G. Herrera is prosecuting the case.
Former HCC Trustee Sent to Prison for Bribery ConvictionRead the Press Release
HOUSTON – A former trustee with Houston Community College (HCC) has been ordered to federal prison following his conviction of bribery of a public official concerning programs receiving federal funds, announced U.S. Attorney Ryan K. Patrick and Special Agent in Charge Perrye K. Turner of the FBI. Chris Oliver, 53, of Houston, pleaded guilty May 15, 2017.
Today, U.S. District Judge Vanessa Gilmore, who accepted the guilty plea, handed Oliver a 70-month sentence. At the hearing, additional testimony was presented including the fact that Oliver had maintained a position of trust as an elected official, but nonetheless, chose to engage in this criminal activity. It was also noted that the bribes took place over an extended period of time, beginning in 2009 and continuing through 2016. Oliver was further ordered to pay a $12,000 in forfeiture to the FBI and will be required to serve a one-year-term of supervised release following completion of the prison term. In handing down the sentence, Judge Gilmore noted that Oliver had been on the board of trustees for approximately 21 years and that the sentence was necessary to take into account the number and amount of bribes Oliver had received, to reflect the seriousness of the offense, to promote respect for the law and provide adequate deterrence.
“Public officials who use their position for private gain undermine the integrity of government and erode the public's trust in the very framework of our democracy. Today's sentence sends a strong message of the consequences of such actions,” said Turner. “The FBI stands firm with local, state and federal partners in an unwavering commitment to combat public corruption and hold accountable those who choose to abuse the privilege of serving the American people. We rely heavily on the public's help in investigating these crimes and urge anyone with information related to public corruption to report it to the FBI.”
At the time of his guilty plea, Oliver admitted he accepted bribes in exchange for the promise of official actions related to his duties as a member of the HCC board of trustees. It was revealed in open court at the plea hearing that Oliver met with another individual on several occasions at various restaurants and coffee shops in Houston where he accepted cash payments in exchange for promising to use his position to help that person secure contracts with HCC.
Oliver later resigned from his position
Oliver was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation with assistance from the Department of Education - Office of Inspector General. Assistant U.S. Attorneys Andrew Leuchtmann and Julie Searle are prosecuting the case.
If you have information regarding public corruption in the Houston area, please contact the FBI helpline at 713-693-5000.
Corpus Christi Man Heads to Prison for Online Solicitation of MinorsRead the Press Release
CORPUS CHRISTI, Texas - A 53-year-old resident of Corpus Christi has been ordered to prison after admitting he attempted to meet two underage girls for the purpose of sex, announced U.S. Attorney Ryan K. Patrick. Jesse Hernandez pleaded guilty Oct. 5, 2017.
Today, Senior U.S. District Judge Janis Graham Jack handed Hernandez a 210-month sentence. He was further ordered to serve the rest of his life on supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. He will also be ordered to register as a sex offender.
Hernandez was communicating with a person he believed was the mother of two minor children - ages 14 and 11. He made arrangements to meet and engage in sexual contact with the minors, but was apprehended as he arrived at the designated meeting place. Hernandez admitted he had sent messages indicating his intention to engage in sexual acts with the children. He was also in possession of a cellular telephone, on which a forensic examination resulted in the discovery of 26 images of child pornography.
The FBI, Immigration and Customs Enforcement’s Homeland Security Investigations and the Corpus Christi Police Department - Internet Crimes Against Children Task Force conducted the investigation as part of Operation Hidden Predator, a joint investigation targeting individuals involved in online solicitation of minors.
Hernandez was arrested on the federal charges in July 2017 and has been in custody since that time where he will remain pending his transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Assistant U.S. Attorney Hugo R. Martinez prosecuted the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Truck Driver Guilty of Alien Smuggling Resulting in DeathRead the Press Release
CORPUS CHRISTI, Texas – A 45-year-old Weslaco man has admitted to human smuggling which resulted in the death of an undocumented alien trapped inside a toolbox, announced Acting U.S. Attorney Abe Martinez.
Juan Enrique Escobedo-Moreno appeared before U.S. Magistrate Judge Jason B. Libby and admitted to smuggling the victim in his tractor trailer. He died after being trapped in a toolbox measuring only 30 inches long, 26 inches wide and 16 inches deep.
According to the facts presented to the court during guilty plea today, Escobedo-Moreno drove his 2002 Kenworth tractor-trailer into the primary inspection area of the Falfurrias Border Patrol checkpoint shortly after midnight on Oct. 3, 2017. He claimed to be a hauling a load of watermelons from Edinburg to Houston and that no one else was with him. Upon inspection, authorities discovered one Mexican national hidden inside a small closet directly behind the driver’s seat. Escobedo-Moreno and that undocumented alien made no mention of anyone else in the vehicle.
Authorities later discovered the remains of an individual concealed in a tool compartment under the sleeper berth. When in the down position, the bed was secured with an exterior latch that would be inaccessible from inside the tool storage compartment under the bed and prevent anyone from freeing themselves. According to information presented in court, Escobedo-Moreno specifically instructed the victim to pull the bed down hard to make sure it would latch and stay closed.
Sentencing has been set for April 9, 2018, before Senior U.S. District Judge Janis Graham Jack. At that time, Escobedo-Moreno faces up to 20 years in federal prison and a possible $250,000 maximum fine.
Immigration and Customs Enforcement’s Homeland Security Investigations and Border Patrol conducted the investigation with the assistance of the Brooks County Sheriff’s Office Assistant U.S. Attorney Robert D. Thorpe Jr. is prosecuting the case.
Katy Couple Ordered to Pay Restitution in Nanny CaseRead the Press Release
HOUSTON – The Katy couple charged in relation to the enslavement of their nanny have been sentenced and ordered to pay more than $100,000 in restitution to the victim, announced Acting U.S. Attorney Abe Martinez. Sandra Nsobundu, 49, pleaded guilty to unlawful conduct with respect to documents in furtherance of forced labor, while her husband - Chudy Nsobundu, 57, pleaded to visa fraud.
At a hearing that concluded late tonight, U.S. District Judge Nancy Atlas ordered the couple to pay $121,035.04 in restitution to the victim. They will also serve sentences of 14 months – seven in prison and another seven on home confinement. In addition to the restitution, Sandra Nsobundu was further ordered to pay an additional $5,000 fine per the Justice for Victims of Trafficking Act of 2015. Both will also be required to serve a term of three years of supervised release following completion of the prison term.
From on or about Sept. 29, 2013, and Oct. 10, 2015, the couple maintained a Nigerian woman to serve as a housemaid and nanny at their residence in Katy.
The immigration laws and regulations of the U.S. require citizens of certain foreign countries who seek admission to the U.S. to obtain a visa prior to entry. The application must contain true and accurate information and is submitted under oath. The defendants knowingly caused a false visa application for the victim to be submitted to the Department of State with numerous pieces of false information. These included the woman’s incorrect date of birth identifying her as 20 years older than she was, a false statement that she was married when she was not, a false statement indicating the purpose of travel was to attend a niece’s graduation and a written letter falsely stating that Chudy Nsobundu was her brother. Chudy Nsobundu knowingly made multiple material misrepresentations under oath on the visa application to increase the chances that the victim’s visa application would be accepted and to hide the fact that she would be working for the Nsobundu family as a housemaid and nanny under conditions not in compliance with U.S. labor laws. He submitted the application under oath, knowing the application contained these material misrepresentations.
Sandra Nsobundu aided and abetted in the submission of the fraudulently filed visa application her husband had submitted. In September 2013, Sandra Nsobundu took the woman to the U.S. Embassy in Lagos, Nigeria, to obtain her visa. Sandra Nsobundu gave her a letter to provide to the consular officials which indicated she did not speak English well and that she would be traveling to the U.S. for her niece’s graduation. Sandra Nsobundu gave the woman a picture of Chudy Nsobundu and the family and told her to tell the officials that he was her brother. The victim is not a relative of Chudy Nsobundu and is not married. The spouse listed on her visa application is the Nsobundus’ driver in Nigeria.
After obtaining the woman’s visa, the Nsobundus paid to transport the victim from Nigeria to the U.S. Once here, Sandra Nsobundu took the victim’s passport and copies of her bank statement. The defendants then concealed, removed and possessed the woman’s passport and visa with the intent to violate the forced labor statute. As part of the plea today, they intended to prevent and restrict, without lawful authority, the victim’s liberty and ability to move and travel in order to maintain her labor and services.
The couple knowingly unlawfully obtained the labor and services of this woman from on or about Sept. 29, 2013, to Oct. 10, 2015. Throughout the period she worked for defendants, the victim was not permitted to have her passport or visa. The Nsobundus knowingly enacted a scheme intended to cause the woman to believe that failure to perform the labor and services would result in serious harm to her. They also threatened abuse of law and the legal process. The scheme included not paying the victim and restricting her movement to the defendants’ residence or two short walks per day around the block with the children. They also frequently yelled at, scolded and berated the victim for moving too slowly or failing to care for the children in the manner they wanted. In addition, the Nsobundus threatened to send the woman back to Nigeria if she did not comply with their labor demands.
The Nsobundus had previously agreed to pay the victim 20,000 Nigerian nairas-$100 U.S. per month. The Nsobundus never paid the victim for any of her work here in the United States.
The victim was rescued Oct. 10, 2015, after more than two years with Nsobundus in the U.S. following a tip to the National Human Trafficking Resource Center.
The couple was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
Members of the Human Trafficking Rescue Alliance conducted the investigation, which included Immigration and Customs Enforcement’s Homeland Security Investigations, the Department of Labor’s Wage and Hour Division, Fort Bend County Sheriff’s Office, Department of State-Diplomatic Security Service. Assistant U.S. Attorney (AUSA) Julie N. Searle and former AUSA Ruben R. Perez prosecuted the case.
Women Charged with Transporting Four Mexican National MinorsRead the Press Release
LAREDO, Texas – Two women are set to appear in federal court on allegations they transported four unaccompanied minors in the country, announced Acting U.S. Attorney Abe Martinez.
Olga Patricia Reyes, 30, from Laredo but resides in Nuevo Laredo, Mexico, and Leslie Chavira, 25, of Laredo, will appear for a preliminary examination and detention hearing today at 10:00 a.m. before U.S. Magistrate Judge Guillermo R. Garcia.
Both women are charged with transporting four unaccompanied minor children who are all citizens of Mexico.
On the evening of Dec. 20, 2017, Reyes applied for admission into the United States from Mexico at the Laredo Port of Entry accompanied by a minor child, according to the criminal complaint. She first claimed the child was a relative and allegedly presented a birth certificate as proof of citizenship. However, the investigation revealed she did not actually know the child.
The charges allege Reyes had previously used birth certificates to successfully smuggle three additional unaccompanied minor children into the United States from Mexico. Those children were ultimately found at Chavira’s Laredo residence, according to the charges.
“We applaud the excellent work of our frontline officers in uncovering the initial immigration violation and the spirit of teamwork between law enforcement that led to a positive outcome and location of three minor alien children,” said Customs and Border Protection (CBP) - Laredo Field Office Director David P. Higgerson.
“Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) works closely with its law enforcement partners in pursuit of identifying, arresting and bringing to justice those individuals suspected of human smuggling,” said HSI Special Agent in Charge Shane Folden. “We will continue to utilize our broad authorities to target those believed to engage in such practices and place personal profit ahead of public safety.”
If convicted, both women face up to 10 years in federal prison and a possible $250,000 maximum fine.
Immigration and Customs Enforcement’s Homeland Security Investigations and Customs and Border Protection conducted the investigation with the assistance of Border Patrol and the Laredo Police Department.
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 presumed innocent unless convicted through due process of law.
Cypress Man Sentenced for Enticement of a Minor via Messaging AppRead the Press Release
HOUSTON – A 34-year-old Cypress man has been ordered to federal prison following his conviction of coercion and enticement of a minor, announced Acting U.S. Attorney Abe Martinez. Christopher Ray Nunes pleaded guilty June 30, 2017.
Today, U.S. District Judge Melinda Harmon took into consideration the facts and circumstances of the case, specifically that Nunes knew what he was doing was illegal and yet he still travelled to meet someone he believed to be a 15-year-old girl for sexual activity. She then imposed a 120-month term of imprisonment. Nunes was further ordered 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.
On Nov. 19 and 20, 2015, Nunes communicated through the texting application known as KIK with someone he believed to be a 15-year-old girl. During those conversations, he detailed his intended plans to engage in sexual acts with her.
On Nov. 20, 2015, Nunes drove from Cypress to Fort Bend County for the purpose of engaging in a sexual act with the girl. He was taken into custody upon his arrival. At the time of his arrest, Nunes was in possession of the phone on which the sexually explicit KIK chats occurred.
Nunes was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI and the Houston Metro Internet Crimes Against Children Task Force conducted the investigation. Assistant U.S. Attorney Sherri L. Zack is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Marijuana and Cocaine Smuggler Ordered to PrisonRead the Press Release
LAREDO, Texas – A 34-year-old man has been ordered to federal prison following his conviction for smuggling marijuana and cocaine and for possessing a firearm in furtherance of a drug trafficking crime, announced Acting U.S. Attorney Abe Martinez. Andy Gomez, a legal permanent resident from Cuba who resided in Laredo, pleaded guilty Oct. 6, 2016.
Today, U.S. District Judge Diana Saldaña handed Gomez a total sentence of 120 months in federal prison followed by four years of supervised release. At the hearing, Judge Saldaña noted that the defendant caused this situation by his own actions.
On July 18, 2016, agents with Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) conducted surveillance on a home in North Laredo and witnessed Gomez and another individual leave the residence in two separate vehicles. They were later stopped, at which time authorities discovered more than 500 pounds of marijuana in the two vehicles. Gomez was also in possession of .380 Smith and Wesson pistol.
The investigation led agents to search a storage unit where they located more than 10 pounds of cocaine, more than 100 pounds of marijuana, a money counting machine and a credit card embosser machine.
Previously released on bond, Gomez was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
HSI conducted the investigation. Assistant U.S. Attorney Christopher S. Coker prosecuted the case.
Victoria Man Indicted for Defrauding EmployerRead the Press Release
VICTORIA, Texas - A 47-year-old Victoria resident made an appearance in Houston federal court on charges of wire fraud, announced Acting U.S. Attorney Abe Martinez
A federal grand jury returned a 10-count indictment against Murray Wade Carson on Dec. 6, 2017. He appeared before U.S. Magistrate Judge Dena Palermo at 2:00 p.m. today. Trial has been set before Senior U.S. District Judge Rainey in Victoria.
The indictment alleges Carson worked in Sweeney for a supply company. While employed there, he allegedly setup the Kirby Taylor Company unbeknownst to his employer. During his employment, Carson devised a scheme to defraud by using his employer’s credit card to purchase non-existent goods and products from the Kirby Taylor Company, according to the indictment.
The charges allege the scheme lasted from approximately 2007 through June 2015 and caused a loss of $1,272,019.23 to his former employer.
The indictment seeks a forfeiture of the $1,272,019.23.
If convicted, Carson faces up to 20 years imprisonment and a possible $250,000 maximum fine.
The FBI conducted the investigation. Assistant U.S. Attorney John Braddock is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Two Men Plead Guilty to Medicare Fraud Scheme in Rio Grande ValleyRead the Press Release
McALLEN, Texas ‐ A former laboratory technician at a medical clinic in Mission and an account representative for a toxicology testing company have entered guilty pleas in connection with a scheme to defraud Medicare, announced Acting U.S. Attorney Abe Martinez.
Ivar Cantu, 46, of Palmview, pleaded guilty today, while co-defendant Omar Solis, 35, of Mission, pleaded guilty Dec. 7. Both admitted to conspiring to commit health care fraud.
Cantu and Solis fraudulently set up an account between the medical clinic where Solis was employed as a laboratory technician and the toxicology testing company for whom Cantu was an account representative. During the latter half of 2015, Solis misappropriated patient urine specimens from the medical clinic and sent them to the toxicology testing company without consent of the patient or doctor in order to receive commissions and collection fees from the testing company. In order to carry out the scheme, Cantu and Solis forged patient signatures, falsified medical records and created fictitious documents.
As a result of the scheme, Medicare was billed $836,788 between May 2015 and December 2015.
Sentencing for both Solis and Cantu is scheduled for Feb. 28, 2018, before U.S. District Judge Micaela Alvarez. At that time, both men face up to 10 years in federal prison as well as a possible $250,000 maximum fine.
The FBI, Department of Health and Human Services‐Office of Inspector General and Texas Health and Human Services Commission conducted the investigation. Assistant U.S. Attorney Andrew Swartz is prosecuting the case.
Mexican Alien Sentenced for Meth TraffickingRead the Press Release
LAREDO, Texas – A 39-year-old undocumented alien who resided in Laredo has been ordered to federal prison following his conviction of conspiracy with intent to distribute methamphetamine, announced Acting U.S. Attorney Abe Martinez. Isidro Rojas Lopez pleaded guilty Aug. 17, 2017.
Today, U.S. District Judge Marina Garcia Marmolejo ordered he serve a total of 151 months in federal prison. Not a U.S. citizen, he is expected to face deportation proceedings following his release.
Lopez had admitted to recruiting a driver to transport narcotics from Laredo to San Antonio. An associate of Lopez delivered a duffle bag containing 10 bundles of methamphetamine to an undercover agent posing as a truck driver. Authorities conducted a “mock arrest” of the agent at the IH-35 checkpoint north of Laredo, at which time the narcotics were seized. The methamphetamine had a net weight of 9.765 kilograms and a purity of 98.4%.
Lopez sought to obtain documentation of the arrest. He discussed with a confidential informant that if his superiors were satisfied that the driver had actually been arrested, Rojas and the informant could be hired to transport additional loads of drugs.
Rojas stated that he was to be paid $1,000 to locate a driver.
The Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorneys Michael Bukiewicz and Mike Eaton are prosecuting the case.
Gang Member Convicted of Sex Trafficking of a ChildRead the Press Release
CORPUS CHRISTI, Texas - A federal judge in Corpus Christi has issued a guilty verdict against a 25-year-old Corpus Christi resident on charges of sex trafficking of a child, announced Acting U.S. Attorney Abe Martinez.
The one-day trial occurred Dec. 14, 2017, before U.S. District Judge Nelva Gonzales Ramos. The court returned its verdict late yesterday against Marcus Anthony Tunchez.
During trial, U.S. District Judge heard about a joint investigation targeting gang members in the Corpus Christi area involved in narcotics trafficking and the sex trafficking of children. Tunchez was one of those identified as a member of the Mexican Mafia gang involved in both methamphetamine distribution and sex trafficking.
In May 2017, Tunchez began selling methamphetamine to an undercover officer and said he acted as a pimp to several young women. Tunchez explained he created and posted advertisements on a commercial sex website for the young women who then gave half the proceeds from their commercial sex acts to Tunchez.
In September 2017, Tunchez met with the undercover officer for the purpose of sex trafficking a child he believed was a 14-year-old girl. Tunchez expected to meet the child and transport her to a hotel where she would engage in a commercial sex act. Tunchez expected to receive 20 percent of the proceeds. He was taken into custody upon his arrival at the designated meeting place.
At trial, he attempted to convince the court that he intended to rob the undercover officer and not commit a sex trafficking crime.
Judge Ramos did not believe his claims and found him guilty as charged.
On Dec. 7, 2017, Tunchez entered a guilty plea on the narcotics charges and an unrelated gun charge before Judge Ramos.
Sentencing will be set at a later date. At that hearing, Tunchez faces a minimum of 10 years and up to life in federal prison and a possible $250,000 fine. Upon completion of any prison term imposed, Tunchez 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. He also faces up to 40 years for the drug charges as well as another 10 years for the firearms offense.
Tunchez was arrested on federal charges in September 2017 and has been in custody since that time where he will remain pending his sentencing hearing.
Immigration and Customs Enforcement’s Homeland Security Investigations and the Drug Enforcement Administration conducted the investigation with the assistance of the Corpus Christi Police Department - Internet Crimes Against Children Task Force.
Assistant U.S. Attorney Hugo R. Martinez is prosecuting the case, which was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Iraqi Refugee Sentenced for Attempting to Provide Material Support to ISILRead the Press Release
HOUSTON – Omar Faraj Saeed Al Hardan, the 25-year-old refugee who was born in Iraq and resided in Houston, has been ordered to federal prison for 16 years following his conviction of attempting to provide material support or resources to a designated foreign terrorist organization. He pleaded guilty Oct. 17, 2016.
Acting U.S. Attorney Abe Martinez, Acting Assistant Attorney General for National Security Dana Boente, Special Agent in Charge Perrye K. Turner of the FBI’s Houston Division and Special Agent in Charge Mark Dawson of Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Houston made the announcement.
“Any person who provides material support to a foreign terrorist organization will be investigated and prosecuted to the fullest extent of the law,” said Martinez. “Al Hardan’s actions were treacherous and completely antithetical to the freedoms we as U.S. citizens value. The sentence imposed today reflects the Department of Justice’s resolve to seek out and punish all violators who would give aid and comfort to international terrorists.”
Today, U.S. District Judge Lynn Hughes, who accepted the guilty plea, handed Al Hardan a 192-month sentence. He will also be on supervised release for the rest of his life.
At the time of his plea, Al Hardan had admitted he attempted to provide material support – specifically himself – to the Islamic State of Iraq and the Levant (ISIL). Al Hardan entered the United States as a refugee on or about Nov. 2, 2009. Prior to entering the country, Al Hardan was in at least two refugee camps in Jordan and Iraq. After being admitted into the U.S. as an Iraqi refugee, he was granted legal permanent residence status on or about Aug. 22, 2011, and had resided in Houston.
In 2013, federal agents began investigating Al Hardan who had been communicating with a California man whom he understood was associated with the Al-Nusrah Front. In those communications, the individual had told Al Hardan that he had previously traveled to Syria to fight for Al-Nusrah and discussed plans to return to Syria with Al Hardan to fight for Al-Nusrah.
Beginning in June 2014 and continuing through 2015, Al Hardan also developed a relationship with a Confidential Human Source (CHS). During that time, they discussed traveling overseas to support ISIL in fighting jihad and various ways to assist ISIL. Al Hardan also said he wanted to be trained in building remote transmitter/receiver detonators for improvised explosive devices, wanted to learn to use cell phones as the remote detonators and wanted to build remote detonators for ISIL. Al Hardan indicated he taught himself how to make remote detonators by accessing online training videos and other resources he found online and showed the CHS a circuit board he built to be used as a transmitter for a detonator.
On Nov. 5, 2014, Al Hardan took an oath of loyalty to ISIL. Two days later, Al Hardan and the CHS participated in approximately one hour of tactical weapons training with an AK-47 that Al Hardan indicated he wanted.
During the investigation, Al Hardan had also posted many statements on social media in support of ISIL. One of those included a photo of a Humvee with an ISIL flag. Above the photo, Al Hardan posted, “ISIS yesterday in Iraq, today in Syria and Allah willing, tomorrow in Jerusalem.” He also made numerous statements about his plans to travel to Syria and fight alongside ISIL and become a martyr. In one instance he said “I want to blow myself up. I want to travel with the Mujahidin. I want to travel to be with those who are against America. I am against America.”
Upon his arrest in January 2016, investigators discovered training CDs on how to build remote detonators, electronic circuitry components, tools used to build circuitry, multiple cell phones (that had not been activated), a prayer list for committing Jihad and becoming a martyr and the ISIL flag.
Al Hardan has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI’s Joint Terrorism Task Force and HSI conducted the investigation with the assistance of the Houston Police Department. Assistant U.S. Attorneys Ted Imperato, Carolyn Ferko and S. Mark McIntyre prosecuted the case.
Houston Man Sentenced for Receipt and Possession of Child PornographyRead the Press Release
HOUSTON – A 37-year-old Houston man has been ordered to federal prison following his conviction of receipt and possession of child pornography, announced Acting U.S. Attorney Abe Martinez. Jose Pico pleaded guilty July 26, 2017.
Today, U.S. District Judge Melinda Harmon handed Pico 121 and120 months for the receipt and possession convictions, respectively. Pico will also serve 15 years of supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. He will also be ordered to register as a sex offender.
The investigation revealed Pico was uploading and storing child pornography into a virtual storage account. Law enforcement conducted a search at Pico’s residence, at which time they seized a cell phone and gaming device that were forfeited as part of the sentence imposed today. Examination of his virtual storage account also revealed images of prepubescent minors who were under the age of 12. The virtual storage account contained 291 images and 446 videos of child pornography.
Pico was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation.
Assistant U.S. Attorney Sherri Zack prosecuted the case, which was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former Teacher Arrested for Production of Child PornographyRead the Press Release
LAREDO, Texas – A 37-year-olf former teacher has been charged in a criminal complaint with production of child pornography, announced Acting U.S. Attorney Abe Martinez.
Ruben Guillermo Ulloa was taken into custody today and made his initial appearance before U.S. Magistrate Judge Guillermo Garcia. At that time, Ulloa was ordered into custody pending a probable cause and detention hearing set for Dec. 20.
The case originated when a 15-year-old who was receiving piano lessons from the Ulloa made a report to authorities, according to the complaint. Ulloa had allegedly been having a sexual relationship with the teenager, whom he had previously taught at a Laredo area school.
The criminal complaint alleges that authorities executed a search warrant on Ulloa’s home and recovered several computers and electronic devices. A forensic search of these devices uncovered pornographic images of the child, which Ulloa had allegedly taken.
Ulloa is charged with production of child pornography and faces a minimum of 15 and up to 30 years in federal prison as well as a possible $250,000 maximum fine.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of Texas A&M International University Police and the Laredo Police Department.
Assistant U.S. Attorney Alfredo De La Rosa 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.
Local Man Arrested for $30 Million Securities and Wire Fraud SchemeRead the Press Release
HOUSTON – A 62-year-old Houston man has been taken into custody following the return of a federal indictment charging him for his role in a securities fraud and wire fraud scheme involving more than $30 million, announced Acting U.S. Attorney Abe Martinez.
A grand jury returned a 21-count indictment Dec. 7, 2017, against Ray Charles Davis. He was taken into custody this morning and is expected to make his initial appearance before U.S. Magistrate Judge Dena H. Palermo at 10:00 a.m. today.
According to the indictment, the scheme involved defrauding investors in Behavioral Recognition Systems Inc. (BRS) by making false and misleading statements to investors in order to fraudulently induce them to purchase shares of BRS. He also unlawfully embezzled money from BRS, according to the charges.
Pursuant to the scheme, Davis allegedly made false statements to investors regarding his salary, how the proceeds of their investments would be used and the financial condition of BRS. As a result of the scheme, Davis defrauded investors out of a total of approximately $32 million and unlawfully embezzled more than $11 million from BRS during the scheme, according to the indictment.
If convicted, he faces up to 20 years in prison for the securities fraud charge as well as each of the 20 counts of wire fraud. The charges also carry a possible $250,000 maximum fine.
The FBI conducted the investigation. The Securities and Exchange Commission also provided information that assisted in the overall investigation. Assistant U.S. Attorney Justin R. Martin is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Fraudsters Sentenced in Second Chance Lending SchemeRead the Press Release
McALLEN, Texas – Three men have been ordered to prison following their convictions related to a “second chance” mortgage lending scheme, announced Acting U.S. Attorney Abe Martinez. A federal jury convicted Luis Antonio Rodriguez, 37, of Mission, and Rogelio Ramos Jr., 37, of Pharr, of conspiracy to commit wire fraud late Friday, May 26, following a seven-day-trial and approximately nine hours of deliberation. Also sentenced today was another co-conspirator - Guadalupe Artemio Gomez, 32, of Mission – who had pleaded guilty prior to trial.
Today, U.S. District Judge Randy Crane ordered Rodriguez to serve a total of 13 years in federal prison, while Ramos received a 90-month term of imprisonment. Gomez received a four-year sentence. At the hearing, the court heard from all three defendants as well as numerous victims who provided testimony that described the substantial harm they and their families suffered as a result of the fraud. The three men were further ordered to serve five years of supervised release and ordered to pay $1,858, 997.75 in restitution to the victims of the scheme.
All three were accused of operating a “second chance” financing business under the names of T.G. and Wealth, Infinite Properties and Me In 3D, focusing on individuals who were financially unable to apply for traditional home financing. The investigation revealed Gomez, Rodriguez and Ramos conducted business in McAllen, Mission, Edinburg, Houston and San Antonio by hiring recruiters to funnel prospective home buyers to Infinite Properties. The homebuyers then gave 10 percent of the purchase price as a down payment to Infinite Properties.
During trial, the jury heard from victims, law enforcement and an FBI forensic accountant who testified that instead of using the down payments as intended, the money was used for personal expenses, trips to Las Vegas and to purchase other real estate.
Gomez testified at trial against Rodriguez and Ramos stating the two men received more than $1 million in the mortgage scheme in 2016.
The defense claimed they had no intent to defraud the victims because they had attempted to get a $10 million loan. The jury was not convinced and found both men guilty as charged.
Previously released on bond, the three men were taken into custody following the sentencing today where they will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI, Texas Department of Insurance and police departments in McAllen, Mission and Edinburg conducted the investigation.
Assistant U.S. Attorneys Robert L. Guerra Jr. and Andrew Swartz prosecuted the case.
Another Firearms Smuggler Heads to PrisonRead the Press Release
LAREDO, Texas – A Laredoan has been ordered to prison following his convictions for his role in smuggling firearms into Mexico, announced Acting U.S. Attorney Abe Martinez. Ruben Arnoldo Madrid, 21, pleaded guilty June 2, 2017.
Today, U.S. District Judge Diana Saldaña sentenced Madrid to a term of 51 months in federal prison to be immediately followed by three years of supervised release.
Madrid participated in a scheme to purchase civilian variants of firearms currently issued to military forces from various local firearms dealers. Between March 2016 and November 2016, Ruben Madrid’s brother, Juan Diego Madrid, 27, of Laredo, directed several individuals including Rolando Armando Madrid, 21, (Ruben’s twin brother), Edward Alexander Duenas, 20, and Francisco Xavier Martinez, 25, all of Laredo, to purchase the firearms. The firearms were then transferred to Erik Villasana, 20, also of Laredo, who arranged for the firearms to be smuggled into Mexico. Ruben and Rolando Madrid initiated the scheme, after which their older brother, Juan, took over the operation. The court noted that Ruben Madrid personally purchased nine firearms out of 36 firearms identified by law enforcement as sold during the operation. Three of the 36 firearms have since been recovered in Mexico.
The straw purchasers bought AR-15 and AK-47-type semiautomatic rifles, Beretta 92FS and DPMS AR-type rifles from Academy and Kirkpatrick Guns & Ammo stores in Laredo and San Antonio. Juan Madrid would then purchase the firearms from the straw purchasers and then re-sell them at a profit to Villasana who would then arrange for the firearms to be smuggled into Mexico. Juan Madrid was already a convicted felon and thereby prohibited from purchasing, owning or possessing firearms.
On Nov. 16, 2017, U.S. District Judge Diana Saldaña sentenced Juan Madrid to a term of 65 months in federal prison, while Rolando Madrid, Villasana, Duenas and Martinez received respective sentences of 51, 63, 27 and 41 months in prison.
Ruben Madrid was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney (AUSA) Homero Ramirez and Special AUSA Lisa Ezra prosecuted the case.
Mexican Human Smugglers Head to Federal PrisonRead the Press Release
LAREDO, Texas – Two Mexican human smugglers have been ordered to prison following their convictions for bringing in 17 undocumented aliens, including five unaccompanied minors, into the United States, announced Acting U.S. Attorney Abe Martinez. Jesus Enrique Duran-Morales, 34, and Amilcar Rodolfo Molina-Ordinez, 35, both citizens and nationals of Mexico, pleaded guilty Oct. 2, 2017.
Today, U.S. District Judge Diana Saldaña sentenced both men to 51 months in federal prison. In handing down the sentences, the court noted their extensive immigration and criminal histories. Not U.S. citizens, they are expected to face deportation proceedings following their release.
Duran-Morales and Molina-Ordinez guided at least 17 undocumented aliens across the Rio Grande River and through ranch land near Laredo on Aug. 12, 2017. Agents from U.S. Border Patrol apprehended the group with the support of the Laredo Sector Horse Patrol Unit and Helicopter Support.
Among the 17 apprehended undocumented aliens were five unaccompanied minors, ranging in age from 14 to 17.
They have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
U.S. Border Patrol conducted the investigation. Special Assistant U.S. Attorney Lisa Ezra prosecuted the case.
Houston Man Taken into Custody on Charges of TerrorismRead the Press Release
UPDATE - 12/13/17:
Today, A federal grand jury returned a five-count indictment against Kaan Sercan Damlarkaya.
He is charged with one count of providing and attempting to provide material support to terrorists which carries a possible sentence of up to 15 years in federal prison. He is also charged with two counts of attempting to provide material support to ISIS and two counts of unlawfully distributing explosives information, all of which carry a possible 20-year maximum term of imprisonment. Each of the charges also carries a potential $250,000 maximum fine.
He remains set for a detention hearing tomorrow at 10:00 a.m.
An indictment complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
HOUSTON – An 18-year-old U.S. citizen from Houston has been charged with unlawfully distributing explosive making instructions and attempting to provide material support to Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.
Acting U.S. Attorney Abe Martinez, Acting Assistant Attorney General for National Security Dana J. Boente and Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office made the announcement.
Authorities arrested Kaan Sercan Damlarkaya late Friday, Dec. 8, 2017, upon the filing of a sealed criminal complaint. It was unsealed this morning as he made his initial appearance before U.S. Magistrate Judge Dena H. Palermo, at which time he was temporarily ordered into custody pending a detention hearing set for Dec. 14.
According to the charges, beginning in or about early August 2017, Damlarkaya engaged in online communications with undercover FBI agents and other sources. During those conversations, he allegedly shared his intentions to travel overseas to fight for ISIS or, if unable, to commit an attack in the United States. The charges also indicate Damlarkaya asked if he could provide a farewell video to be published should he follow through with an attack resulting in his death in order to inspire others. Damlarkaya further provided instructions on how to build an AK-47 or AR-15 assault rifle from readily available parts in order to avoid detection from authorities, according to the criminal complaint.
Additionally, Damlarkaya provided a formula to alleged ISIS supporters for the explosive, Triacetone Triperoxide (TATP), and instructions on how to use TATP in a pressure cooker device that contained shrapnel, according to the allegations. He also discussed the use of a machete or Samurai sword as an alternative to a gun or explosive. The criminal complaint further indicates he claimed to carry a knife in the event he was stopped by law enforcement and that he slept with a machete under his pillow in case his house was ever raided.
In early November 2017, according to court documents, Damlarkaya explained “if I buy a gun or supplies for a bomb, they [presumably law enforcement] will heat up pressure [j]ust like a few months ago when I was trying an operation but they found out.” The criminal complaint further alleges that Damlarkaya claims to have attempted to get to Syria on two other occasions, but failed.
If convicted of unlawfully distributing explosives information or attempting to provide material support to a designated foreign terrorist organization, Damlarkaya faces a possible 20-year-maximum term of imprisonment. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the sentencing of the defendant will be determined by the court after considering the advisory Sentencing Guidelines and other statutory factors.
The FBI’s Joint Terrorism Task Force conducted the investigation. Assistant U.S. Attorneys Alamdar Hamdani and Rob Jones of the Southern District of Texas are prosecuting the case along with Trial Attorneys Gregory Gonzalez and Kevin Nunnally of the Counterterrorism Section of the Justice Department’s National Security Division.
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Houston Area Man Sentenced for Role in Cocaine DistributionRead the Press Release
BROWNSVILLE, Texas – A 28-year-old resident of Pasedena has been ordered to prison for his participation in a cocaine distribution scheme involving multiple seizures of cocaine, announced Acting U.S. Attorney Abe Martinez. Victor Hugo Hernandez pleaded guilty May 24, 2017.
Today, U.S. District Judge Andrew S. Hanen ordered Hernandez to serve a total of 120 months in federal prison. The sentence will be immediately followed by five years of supervised release.
Beginning in April 2015, Hernandez participated in a series of meetings to negotiate the transportation of approximately 30 kilograms of cocaine to Kansas City, Missouri. Law enforcement observed and recorded these meetings. On May 1, 2015, Hernandez went to a fast food restaurant in Brownsville and finalized the delivery of the cocaine. Co-conspirator Mario Marroquin arrived and delivered the narcotics in the parking lot. The drugs were then transported to Kansas City where they ultimately tested positive for cocaine and weighed approximately 29 kilograms.
In October 2015, Hernandez engaged in another transaction involving the transportation of cocaine to North Carolina. He assisted the cocaine distribution scheme as Jaime Pena and Jose Adan Lopez delivered two separate loads of cocaine to an undercover officer. Pena delivered approximately 25 kilograms of cocaine at an Olmito convenience store, while Lopez provided 20 kilograms of cocaine to the office at a Home Improvement store in Brownsville.
The court found the total amount of cocaine for which Hernandez was responsible in these three transactions was 74 kilograms.
Each of the co-conspirators had also pleaded guilty. Lopez, 43, Marroquin, 25, and Pena, 53, all of Brownsville, received 102, 70 and 54 months in prison, respectively.
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.
The Drug Enforcement Administration and police departments in Brownsville and Pasadena conducted the investigation. Assistant U.S. Attorneys Jody Young and Karen Betancourt prosecuted the case.
Judge Finds Sugar Land Resident Guilty of Child Pornography ChargesRead the Press Release
HOUSTON – A federal judge has found a 43-year-old legal permanent resident who lived in Sugar Land guilty of receipt, access with intent to view and possession of child pornography, announced Acting U.S. Attorney Abe Martinez.
U.S. District Judge Alfred H. Bennett found Jacinto Lopez-Toledo guilty following two days of trial.
Lopez-Toledo came to the attention of law enforcement after investigators found evidence that he was accessing files from a website known to contain child pornography. A search warrant was executed on his residence on Dec. 1, 2015, at which time investigators seized two desktop computers, a laptop computer and an external hard drive.
The forensic examination of the seized devices revealed Lopez-Toledo had 50,216 images and 941 videos of child pornography. These images and videos included children under the age of 12, bondage and acts of violence. Some of the images are of known victims as identified through the National Center for Missing and Exploited Children.
At trial, the court found Lopez-Toledo had an additional 527,844 images and 969 videos which appeared to be child pornography but could not be confirmed as involving a minor. The court also heard that Lopez-Toledo had been collecting and viewing child pornography for several years, dating back to as early as 2003.
Lopez-Toledo has previously admitted he would view and download child pornography from the Internet and also from file sharing networks. Prior to trial, he argued those statements should be suppressed as well as the original search warrant which started the overall investigation.
The judge ultimately found him guilty as charged.
Previously released on bond, Toledo-Lopez was ordered into custody following the verdict today where he will remain pending his sentencing, which will be set at a later date. At that time, he faces up to 20 imprisonment for the receipt of child pornography and a maximum of 10 years for intent to view and possession of child pornography.
The FBI and the Pearland Police Department conducted the investigation with the assistance of the Sugar Land Police Department and Immigration and Customs Enforcement’s Homeland Security Investigations. Assistant U.S. Attorneys Julie N. Searle and Kimberly Leo prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."