Southern District of Texas
Press releases recorded for this federal judicial district.
Laredo Resident Indicted in Enticement of a Minor ChargeRead the Press Release
LAREDO, Texas – A Laredo resident has been indicted on charges related to the enticement of a minor, announced Acting U.S. Attorney Abe Martinez.
A federal grand jury returned an indictment today against Ruben Morin, 22, of Laredo. The two-count indictment charges Morin with coercion and enticement of a minor and transfer of obscene materials to a minor.
Between Aug. 30, 2017, to Sept. 15, 2017, Morin allegedly communicated with whom he thought was a 13-year-old girl through an online messaging application and text messages. During these communications, Morin sent several pictures of his genitals, according to th charges. Morin then travelled locally to a location in Laredo for the alleged purpose of engaging in a sexual act with the girl. Upon his arrival, law enforcement took him in to custody.
If convicted of the coercion and enticement charge, Morin faces a mandatory minimum of 10 years and up to life in prison. For the transfer of obscene materials, he faces up to 10 years in prison. Both counts also carry a possible $250,000 fine, upon conviction.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of the Webb County Sheriff’s Department, Laredo Police Department and the United Independent School District Police.
The case, prosecuted by Assistant U.S. Attorney Christopher dos Santos, 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."
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Former President of Harris County Medical Society and Affiliated Facilities Settle Allegations of Medicare FraudRead the Press Release
HOUSTON – Dr. Gurunath Thota Reddy, Memorial Hermann Endoscopy and Surgery Center North Houston, United Surgical Partners International and Digestive & Liver Disease Consultants P.A. have entered into an agreement to pay $1,575,000 to settle allegations of Medicare fraud, announced Acting U.S. Attorney Abe Martinez and Special Agent in Charge C.J. Porter of the Department of Health and Human Services - Office of Inspector General (DHHS-OIG). The claims resolved by this settlement are only allegations and there has been no determination of liability.
The Medicare claims included in the settlement date from April 1, 2007, through Nov. 30, 2014.
An endoscopy nurse formerly employed by Memorial Hermann Endoscopy and Surgery Center initialed the matter. She alleged that Reddy and other physicians who performed colonoscopies at Memorial Hermann Endoscopy and Surgery Center North Houston failed to meet established medical standards. She claimed Reddy and other physicians performed procedures at the center so quickly that they were essentially worthless. By failing to take the necessary amount of time to closely examine the colon, precancerous lesions could be missed.
She also claimed that, in the interest of saving time, the physicians would not always examine the entire colon and would sometimes spend as little as two minutes on a colonoscopy. She also alleged the surgery center did not follow established guidelines for sanitation, claiming Reddy would not put on a clean gown prior to each procedure in order to save money.
“When Medicare pays for a patient to undergo a medical procedure, Medicare expects the health care provider to follow established medical standards of care and sanitation,” said Martinez. “There is no excuse for shortcutting quality in order to increase revenues.”
“Boosting profits with shortcuts to standard medical procedures is unacceptable and at the expense of patient safety,” said Porter. “Working with our law enforcement partners, we will continue to protect Medicare and Medicaid patients from substandard care.”
The experienced endoscopy nurse who brought the allegations further claimed she was fired the day after she complained to the Regional Vice President of United Surgical Partners about the problems she observed.
The FBI, DHHS-OIG and investigators for the U.S. Attorney’s Office conducted the investigation. Assistant U.S. Attorney Michelle Zingaro handled the litigation on this matter.
Former Congressional Staffer Pleads Guilty to Extensive Fraud and Money Laundering SchemeRead the Press Release
HOUSTON - A former congressional staffer pleaded guilty today for his role in orchestrating a scheme to steal hundreds of thousands of dollars from charitable foundations and the individuals who ran those foundations to pay for personal expenses and to illegally finance a former congressman’s campaigns for public office, announced Acting U.S. Attorney Abe Martinez and Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division.
Jason T. Posey, 46, formerly of Houston and currently residing in Mississippi, pleaded guilty to one count of mail fraud, one count of wire fraud and one count of money laundering before Chief U.S. District Judge Lee H. Rosenthal of the Southern District of Texas. Sentencing is set for March 29, 2018.
According to admissions made in connection with Posey’s plea, Posey served as director of special projects for former U.S. Congressman Stephen E. Stockman, 60, of the Houston area, from in or around January 2013 until in or around November 2013. Posey admitted that, at Stockman’s direction, he and another congressional staffer, Thomas Dodd, 38, also of the Houston area, illegally funneled $15,000 of charitable proceeds into Stockman’s campaign bank account and caused the campaign to file reports with the Federal Election Commission (FEC) that falsely stated that the money was a contribution from their parents and from the staffers themselves. According to Posey’s admissions, Stockman also directed Posey to send a letter to a charitable donor that falsely stated the donor’s $350,000 donation had been used to support a charitable endeavor, when the funds were actually used for other purposes to include Stockman’s campaigns for public office.
In connection with his plea, Posey also admitted he and Stockman raised $450,571.65 to support Stockman’s 2014 Senate campaign by falsely representing to a donor that the funds would be used to support a legitimate independent expenditure by an independent advocacy group Posey headed. In fact, according to Posey, Stockman personally directed and supervised the activities of the purportedly independent group, including the printing and mailing of hundreds of thousands of copies of a pro-Stockman publication to Texas voters. Posey also admitted he submitted a false affidavit to the FEC in order to conceal the scheme.
Dodd pleaded guilty on March 20 to conspiracy to commit mail and wire fraud and conspiracy to make illegal conduit contributions and false statements to the FEC.
Stockman’s trial is scheduled to begin on Jan. 29, 2018. The charges and allegations against him are merely accusations. He is presumed innocent until and unless proven guilty.
The FBI and IRS-CI are investigating the case. Assistant U.S. Attorney Melissa Annis is prosecuting the case along with Trial Attorneys Ryan J. Ellersick and Robert J. Heberle of the Criminal Division’s Public Integrity Section.
Former Congressional Staffer Pleads Guilty to Extensive Fraud and Money Laundering SchemeRead the Press Release
A former congressional staffer pleaded guilty today for his role in orchestrating a scheme to steal hundreds of thousands of dollars from charitable foundations and the individuals who ran those foundations to pay for personal expenses and to illegally finance a former congressman’s campaigns for public office, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Acting U.S. Attorney Abe Martinez of the Southern District of Texas.
Jason T. Posey, 46, formerly of Houston, and currently residing in Mississippi, pleaded guilty to one count of mail fraud, one count of wire fraud and one count of money laundering before Chief U.S. District Judge Lee H. Rosenthal of the Southern District of Texas. Sentencing is set for March 29, 2018.
According to admissions made in connection with Posey’s plea, Posey served as director of special projects and treasurer of the congressional campaign committee for former U.S. Congressman Stephen E. Stockman, 60, of the Houston, Texas area, from in or around January 2013 until in or around November 2013. Posey admitted that, at Stockman’s direction, he and another congressional staffer, Thomas Dodd, 38, of the Houston, Texas area, illegally funneled $15,000 of charitable proceeds into Stockman’s campaign bank account and caused the campaign to file reports with the Federal Election Commission (FEC) that falsely stated that the money was a contribution from their parents and from the staffers themselves. According to Posey’s admissions, Stockman also directed Posey to send a letter to a charitable donor that falsely stated that the donor’s $350,000 donation had been used to support a charitable endeavor, when in fact the funds were actually used for other purposes, including Stockman’s campaigns for public office.
In connection with his plea, Posey also admitted that he and Stockman raised $450,571.65 to support Stockman’s 2014 Senate campaign by falsely representing to a donor that the funds would be used to support a legitimate independent expenditure by an independent advocacy group Posey created. In fact, Posey admitted that Stockman personally directed and supervised the activities of the purportedly independent group, including the printing and mailing of hundreds of thousands of copies of a pro-Stockman publication to Texas voters. Posey also admitted that he submitted a false affidavit to the FEC in order to conceal the scheme.
Dodd pleaded guilty on March 20 to conspiracy to commit mail and wire fraud and conspiracy to make illegal conduit contributions and false statements to the FEC. Stockman’s trial is scheduled to begin on Jan. 29, 2018. The charges and allegations in this case are merely accusations. Stockman is presumed innocent until proven guilty.
The FBI and IRS-CI are investigating the case. Trial Attorneys Ryan J. Ellersick and Robert J. Heberle of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Melissa Annis of the Southern District of Texas are prosecuting the case.
Florida Businessman Pleads Guilty to Foreign Bribery Charges in Connection with Venezuela Bribery SchemeRead the Press Release
A partial owner of several Florida-based energy companies pleaded guilty today to foreign bribery charges for his role in a scheme to corruptly secure contracts from Venezuela’s state-owned and state-controlled energy company, Petroleos de Venezuela S.A. (PDVSA).
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Abe Martinez of the Southern District of Texas and Special Agent in Charge Mark Dawson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations’ (ICE-HSI) Houston office made the announcement.
Fernando Ardila Rueda (Ardila), 49, of Miami, pleaded guilty in federal court in Houston, to one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA) and one count of violating the FCPA. U.S. District Judge Gray H. Miller of the Southern District of Texas accepted the guilty plea. Sentencing is scheduled for Feb. 8, 2018.
According to admissions made in connection with his plea, Ardila conspired with U.S.-based businessmen Abraham Jose Shiera Bastidas (Shiera) and Roberto Enrique Rincon Fernandez (Rincon) to pay bribes and other things of value to PDVSA purchasing analysts. The bribes were paid to ensure that Shiera’s and Rincon’s companies were placed on PDVSA bidding panels and in order to obtain or retain business with PDVSA. From 2008 through 2014, while he was sales director, manager and partial owner of several of Shiera’s companies, Ardila provided entertainment and offered bribes to PDVSA officials based on a percentage of the value of contracts the officials helped to award to Shiera’s companies.
Rincon, Shiera and two other former employees of Shiera’s companies have also pleaded guilty in the case. Including Ardila, the Justice Department has announced a total of 10 individuals have pleaded guilty and are pending sentencing as part of a larger, ongoing investigation by the U.S. government into bribery at PDVSA.
ICE-HSI is conducting the ongoing investigation with assistance from IRS-Criminal Investigation. Trial Attorneys Aisling O’Shea and Jeremy R. Sanders of the Criminal Division’s Fraud Section, and Assistant U.S. Attorneys (AUSA) John Pearson and Robert S. Johnson of the Southern District of Texas are prosecuting the case. AUSA Kristine Rollinson of the Southern District of Texas is handling the forfeiture aspects of the case.
The Criminal Division’s Office of International Affairs and the Swiss Federal Office of Justice also provided assistance.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Florida Businessman Pleads Guilty in Connection with Venezuela Bribery SchemeRead the Press Release
HOUSTON – A partial owner of several Florida-based energy companies pleaded guilty today to foreign bribery charges for his role in a scheme to corruptly secure contracts from Venezuela’s state-owned and state-controlled energy company, Petroleos de Venezuela S.A. (PDVSA).
Acting U.S. Attorney Abe Martinez of the Southern District of Texas, Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Special Agent in Charge Mark Dawson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations’ (ICE-HSI) Houston office made the announcement.
Fernando Ardila Rueda (Ardila), 49, of Miami, Florida, pleaded guilty in federal court in Houston to one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA) and one count of violating the FCPA. U.S. District Judge Gray H. Miller accepted the guilty plea. Sentencing is scheduled for Feb. 8, 2018.
According to admissions made in connection with his plea, Ardila conspired with U.S.-based businessmen Abraham Jose Shiera Bastidas (Shiera) and Roberto Enrique Rincon Fernandez (Rincon) to pay bribes and other things of value to PDVSA purchasing analysts. The bribes were paid to ensure that Shiera’s and Rincon’s companies were placed on PDVSA bidding panels and in order to obtain or retain business with PDVSA. From 2008 through 2014, while he was sales director, manager and partial owner of several of Shiera’s companies, Ardila provided entertainment and offered bribes to PDVSA officials based on a percentage of the value of contracts the officials helped to award to Shiera’s companies.
Including Ardila, the Justice Department has announced a total of 10 individuals have pleaded guilty and are pending sentencing as part of a larger, ongoing investigation by the U.S. government into bribery at PDVSA.
ICE-HSI is conducting the ongoing investigation with assistance from IRS - Criminal Investigation. Assistant U.S. Attorneys (AUSA) John Pearson and Robert S. Johnson of the Southern District of Texas are prosecuting the case along with Trial Attorneys Aisling O’Shea and Jeremy R. Sanders of the Criminal Division’s Fraud Section. AUSA Kristine Rollinson of the Southern District of Texas is handling the forfeiture aspects of the case.
The Criminal Division’s Office of International Affairs and the Swiss Federal Office of Justice also provided assistance.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Former Local Teacher Sentenced on Child Pornography ChargesRead the Press Release
HOUSTON – A 51-year-old Houston man has been ordered to prison following his convictions of receipt and possession of child pornography, announced Acting U.S. Attorney Abe Martinez. Jason Dion Johnson pleaded guilty April 20, 2017.
Today, U.S. District Judge Alfred H. Bennett took into consideration Johnson’s position as a teacher and that he had been involved in collecting child pornography for more than 18 years. He then sentenced Johnson to 204 and 120 months for the receipt and possession convictions, respectively. The sentences will run concurrently. Johnson was further ordered to pay restitution in the amount of $70,000 to four known victims and will serve 15 years of supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. He will also be ordered to register as a sex offender.
The investigation into Johnson began Dec. 6, 2015, as the FBI sought to identify persons using peer-to-peer software to traffic in child pornography. Agents soon discovered a specific computer as offering to participate in the distribution of child pornography movies. Johnson was identified as the person linked to that computer.
Law enforcement executed a search warrant May 6, 2016, at Johnson’s Houston residence, at which time investigators found a number of videos and images of prepubescent girls being sexually exploited. Additionally, agents allegedly found several unmarked VHS tapes which revealed the presence of what appeared to be a hidden camera video from a changing area within a school. On these tapes, there are young female students who are observed to be entering the camera’s field of view and removing their clothing while in the process of changing into a uniform. Agents also found a pile of girls underwear at his residence.
At the time of the investigation, Johnson was employed as a 7th grade Social Studies teacher at Beechnut Academy in Houston. However, authorities do not believe the footage was taken at that school.
Johnson will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation.
This case, prosecuted by Assistant U.S. Attorney Kimberly Ann Leo, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Corpus Christi Man Pleads Guilty to Online Solicitation of MinorsRead the Press Release
CORPUS CHRISTI, Texas - A 52-year-old resident of Corpus Christi has admitted he attempted to meet two underage girls for the purpose of sex, announced Acting U.S. Attorney Abe Martinez.
Jesse Hernandez appeared before U.S. Magistrate Judge Jason B. Libby and entered a guilty plea to one count of online solicitation of a minor.
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 to authorities that 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.
U.S. District Judge Nelva Gonzales Ramos will impose sentencing Jan. 31, 2018. At that time, Hernandez faces a minimum of 10 years and up to life in federal prison. He will remain in custody pending his sentencing hearing.
Hernandez was arrested as part of Operation Hidden Predator. The FBI, Immigration and Customs Enforcement’s Homeland Security Investigations, Corpus Christi Police Department—Internet Crimes Against Children Task Force and the Nueces County District Attorney’s Office conducted the investigation.
The case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez, 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."
Four Area Hospitals to Pay Millions to Resolve Ambulance Swapping AllegationsRead the Press Release
HOUSTON – Four Houston-area hospitals have agreed to pay $8.6 million to settle allegations they received kickbacks from various ambulance companies in exchange for rights to the hospitals’ more lucrative Medicare and Medicaid transport referrals. The hospitals are all affiliated with Hospital Corporation of America (HCA), which is based in Nashville, Tennessee, and include Bayshore Medical Center, Clear Lake Regional Medical Center, West Houston Medical Center and East Houston Regional Medical Center.
Acting U.S. Attorney Abe Martinez made the announcement along with Chief Counsel Gregory Demske of the Department of Health and Human Services – Office of Inspector General (DHHS-OIG) and Special Agent in Charge CJ Porter of HHS-OIG, Office of Investigations.
“This settlement demonstrates our office’s commitment to combatting health care fraud,” said Martinez. “Ensuring the integrity of our federal health care programs is one of our highest priorities. We will continue to work to protect the public and hold accountable those who attempt to defraud the system.”
This is the second such announcement this office has made holding accountable medical institutions (hospitals and skilled nursing facilities) for these ambulance “swapping” arrangements. The first such settlement - announced in late 2015 and believed at the time to be the first in the nation of its kind - involved another defendant in this same investigation. Prior to these, virtually all cases focused on the actions of the ambulance companies, rather than the medical institutions they serve.
The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by federal health care programs, including Medicare and Medicaid. The settlement announced today resolves allegations that patients at the four hospitals received free or heavily discounted ambulance transports from various ambulance companies in exchange for the hospitals’ referral of other lucrative Medicare and Medicaid business to those same companies. If not for this kickback arrangement, the four hospitals would have been financially responsible for the patient transports at significantly higher rates.
“This settlement emphasizes that both sides of any arrangement where remuneration is paid in exchange for healthcare referrals are responsible for their improper actions – even entities that do not actually bill Medicare or Medicaid for the services,” said Demske. “Any company or individual receiving anything of value in exchange for referrals should understand that their actions may have serious legal and financial consequences.”
Medicaid is funded jointly by the states and the federal government. The State of Texas paid for some of the Medicaid claims at issue and will receive more than $300,000 of the settlement amount.
Three whistleblowers, known as “relators,” filed two lawsuits under the qui tam provision of the False Claims Act which permits private parties to file suit on behalf of the government and obtain a portion of the recovery. The relators’ claims are also resolved by this settlement.
Today’s resolution also marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team initiative which the Attorney General and the Secretary of Health and Human Services announced in May 2009. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation.
“This settlement serves as an important reminder to the provider community that arrangements that violate the Anti-Kickback Statute will not be tolerated and provides an outstanding example of how law enforcement is able to use investigative tools,” said Porter.
Among the tools instrumental to the settlement were those provided by HHS-OIG’s Chief Data Office, Consolidated Data Analysis Center (CDAC). CDAC provides HHS-OIG and its law enforcement partners with best practices, consultancy and skills development in data mining, predictive analytics and data management and modeling in support of fraud prevention and recovery.
The settlement was the result of a coordinated effort among U.S. Attorney’s Office, DHHS-OIG and the Texas Attorney General’s Office. Assistant U.S. Attorney Kenneth Shaitelman handled the case.
The claims resolved by this settlement are allegations only, and there has been no determination of liability.
Nurse Imposter Sent to Prison for Health Care FraudRead the Press Release
VICTORIA, Texas – A 43-year-old former resident of Goliad has been ordered to prison after she admitted to repeatedly posing as a nurse, announced acting U.S. Attorney Abe Martinez. Leticia Gallarzo pleaded guilty on July 6, 2017, to five counts of making false statements relating to health care.
Today, U.S. District Judge John D. Rainey, who accepted the guilty plea, handed Gallarzo a 14-month sentence to be immediately followed by three years of supervised release. She was further ordered to pay restitution totaling more than $34,000. In handing down the sentence, Judge Rainey noted that upwardly departing from the sentencing guidelines was appropriate in this case given the nature and circumstances of the offense and the Gallarzo’s history and characteristics.
Gallarzo has no medical training, but obtained employment as a registered nurse at two hospitals and three nursing homes in five different Texas cities over a seven-month period. As each employer discovered the deception, Garza would leave the facility and immediately begin seeking work at a medical facility in another city.
At the time of her plea, Gallarzo admitted she had knowingly lied about being a registered nurse on five occasions in order to secure employment for which she was not qualified.
She will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI and the Texas Attorney General’s Office - Medicaid Fraud Control Unit conducted the investigation with the assistance of police departments in Goliad and Victoria. Assistant U.S. Attorney Robert D. Thorpe Jr. is prosecuting the case.
Man Sent to Prison for Preparing False Income Tax ReturnRead the Press Release
HOUSTON – A local income tax return preparer has been ordered to prison following his conviction of preparing a false U.S. Individual Income Tax Return for a client, announced Acting U.S. Attorney Abe Martinez. Chester Swanson pleaded guilty July 17, 2017.
Today, U.S. District Judge Keith Ellison handed Swanson an 18-month sentence to be followed by one year of supervised release. He was further ordered to pay a $244,817 in restitution.
Swanson admitted in the plea agreement filed in the record of the case that he prepared at least 37 false income tax returns for clients with a resulting intended income tax harm to the United States of more than $244,000. He further admitted the false items he placed on the income tax return underlying his guilty plea included false amounts of unreimbursed medical and dental expenses, false amounts of gifts to charity, false amounts of unreimbursed employee expenses, and false amounts of alleged losses from a sole proprietorship.
Swanson operated his income tax preparation business under the name of Chester’s Mobile Tax Service in which he met clients at various locations in Houston to prepare their income tax returns for them. Swanson admitted he also used the name Hollywood Business SVC Investments in his tax preparation business.
Swanson has agreed to never again prepare income tax returns for others.
Swanson was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
IRS-Criminal Investigation conducted the investigation. Assistant U.S. Attorney Charles J. Escher is prosecuting the case.
US and Hidalgo County Reach Collaborative Agreement on Polling Place Access for Voters with DisabilitiesRead the Press Release
McALLEN, Texas – The United States Attorney’s Office (USAO) has reached a settlement under Title II of the Americans with Disabilities Act (ADA) with Hidalgo County, announced Acting U.S. Attorney Abe Martinez. Title II prohibits discrimination on the basis of disability by a state or local government in any of its programs or services, including its voting program. The agreement announced today will greatly improve physical accessibility at the county’s polling places for individuals who use wheelchairs and other mobility aids and for individuals who are blind or have vision impairments.
“The right to vote is the cornerstone of our democracy,” said Martinez. “This agreement will ensure that persons with mobility disabilities and vision impairments have equal opportunities to exercise their right to vote in person at their assigned polling place, just like their neighbors. The USAO is committed to continued, vigorous enforcement of the panoply of federal civil rights laws aimed at securing the right to vote for all Americans, including the ADA. We commend Hidalgo County for its cooperation in our investigation as well as the county’s commitment to make its voting program fully accessible.”
Under the terms of the settlement, accessibility will be a major criterion in the county’s selection of polling places. To make that assessment, the county will use an evaluation form for each prospective polling place based on ADA architectural standards. The county has agreed either to relocate inaccessible polling places to accessible facilities or to use temporary measures such as portable ramps, signs, traffic cones and remote signaling devices where appropriate to ensure accessibility on Election Day.
Hidalgo County, working with the Civil Rights Section of the USAO, is striving to provide individuals with disabilities the opportunity to vote at the polls throughout Hidalgo County.
For more information on the ADA, visit www.ada.gov. ADA complaints may be filed by email to [email protected] or within the Southern District of Texas at [email protected].
Man Sentenced to 35 years for Meth Trafficking from Houston to LouisianaRead the Press Release
HOUSTON – A native of Louisiana has been ordered to federal prison following his conviction of possessing with the intent to distribute methamphetamine and possessing a firearm during and in relation to a drug trafficking crime, announced Acting U.S. Attorney Abe Martinez. John Jacob Lavergne, 39, pleaded guilty July 13, 2016.
Today, U.S. District Judge Nancy Atlas ordered Lavergne to federal prison for a total of 420 months. In handing down the sentence, Judge Atlas described this as the largest methamphetamine trafficking case she had seen in her 20 years on the bench. Lavergne was held responsible for trafficking 16 kilograms of ice, a crystallized and very pure form of methamphetamine.
Lavergne was arrested Sept. 11, 2015, after a long-term drug trafficking investigation known as “Operation Meth Highway.” During the course of this investigation, law enforcement discovered Lavergne was buying large quantities of methamphetamine from suppliers in Houston and transporting them to retail distributors in Louisiana for sale.
Authorities also uncovered several instances in which he threatened to use violence to further his drug trafficking. On one occasion, Lavergne threatened to take revenge on a retail distributor for a drug debt she owed. In another instance, he had plotted to rob and shoot another trafficker delivering a two-kilogram load of ice. Law enforcement intervened to prevent the violence.
Lavergne was also arrested during the course of the investigation on two different occasions with firearms.
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.
Operation Meth Highway was a collaborative effort of various law enforcement partners in Texas and Louisiana. Among those were the Drug Enforcement Administration in Houston and Lafayette, Louisiana; the Bureau of Alcohol, Tobacco, Firearms and Explosives; Texas Department of Public Safety; Louisiana State Patrol; police departments in Houston and Huntsville, Texas, and Lafayette and Youngsville, Louisiana; Texas sheriff’s offices in Walker, Harris and Fort Bend Counties; and Louisiana sheriff’s offices in Lafayette, St. Martin, New Iberia and St. Landry Parishes. Assistant U.S. Attorney Sharad S. Khandelwal prosecuted the case.
Former Gulf Cartel Leader Convicted of Drug Conspiracy and Assaults on Federal OfficersRead the Press Release
BROWNSVILLE, Texas - Jorge Costilla-Sanchez has pleaded guilty to conspiracy to possess with intent to distribute cocaine and marijuana as well as two counts of assault on a federal officer, announced Acting U.S. Attorney Abe Martinez.
Costilla-Sanchez, 46, was the head of the Gulf Cartel (CDG) for some of the years following the arrest of Osiel Cardenas in 2003 and before Costilla-Sanchez’s arrest in September 2012. Since the 1990s, the CDG has been the lead transnational narcotics trafficking and money laundering organization in Northern Tamaulipas, Mexico.
During his association with the CDG, Costilla-Sanchez was responsible for making strategic decisions and trying to manage various factions within the CDG. From 1998-2012, Costilla-Sanchez helped provide leadership to the CDG which resulted in the importation of thousands of kilograms of cocaine and marijuana into the United States. CDG narcotics enter the country at the Ports of Entry in Hidalgo and Cameron County, along the Rio Grande River and through lanchas arriving along the National Seashore at Padre Island. Once imported into the U.S., traffickers here would transport the narcotics to various cities throughout the United States. Profits from the sale of narcotics were returned to the CDG in Mexico. Money laundering efforts to promote this scheme included bulk cash currency smuggling to Northern Mexico, the use of funnel accounts to wire money into banking accounts for eventual repatriation to the CDG and the purchase of assets to disguise the illicit nature of these drug proceeds.
Other key parts of the CDG drug trafficking organization were the promotion of public corruption as well as the collection of a “piso” or tax from business owners, illegal alien smugglers and independent narcotics traffickers in Mexico which would allow them to operate.
During his guilty plea today, Costilla-Sanchez acknowledged his participation in a conspiracy to possess with intent to distribute kilogram amounts of cocaine and marijuana.
He also admitted his involvement in the assault of two federal officers. In November 1999, Costilla-Sanchez was with Cardenas when two U.S. federal agents were seen near a CDG residence. Cardenas called out on a two-way radio to his security team and ordered them to stop the agents. The CDG had at least four vehicles deployed to force the U.S. agents to stop in broad daylight on a heavily traveled street in Matamoros. Costilla-Sanchez also arrived at the stop and carried a pistol to the encounter. Several CDG members also pointed AK-47s at the agents who felt in fear of losing their lives. Cardenas and another co-defendant - Juan Carlos De La Cruz Reyna – also pleaded guilty to the assault and were both sentenced to prison.
Costilla-Sanchez’s sentencing has been set for Jan. 4, 2018, before U.S. District Judge Hilda G. Tagle. At that time, Costilla-Sanchez faces a minimum of 10 years and up to life in federal prison. He is also subject to a money judgement regarding the proceeds he obtained during his participation in the conspiracy. That amount will be determined at the time of sentencing.
The FBI, Immigration and Customs Enforcement’s Homeland Security Investigations, Drug Enforcement Administration, Cameron County Sheriff’s Office and Brownsville Police Department conducted the investigation. Assistant U.S. Attorneys Jody Young, Toni Trevino and Karen Betancourt are prosecuting the case.
Woman Admits to Illegally Selling Prescription Drugs Not Approved for Use in the USRead the Press Release
HOUSTON – A 47-year-old Mexican national who illegally resided in Conroe has been convicted of conspiring to smuggle prescription drugs into the United States and receiving and delivering misbranded drugs with the intent to defraud, announced Acting U.S. Attorney Abe Martinez.
Carolina Aguilar Rodriguez admitted she purchased prescription drugs from individuals who were not licensed wholesale distributors, knowing they had come into the United States covertly and illegally from El Salvador and Mexico. These were not manufactured in the United States, were not approved for use in the United States, should not have been present in the United States and did not contain labels and warnings in English as required by law to protect consumers. One of the drugs - Diprospan - was found to be counterfeit as well as misbranded and did not contain the active pharmaceutical ingredients listed on its labeling.
Rodriguez admitted to selling, dispensing and administering a wide variety of the prescription drugs from her store Naturavida located on Blalock Road in Houston to customers who did not have prescriptions or any type of physician’s orders. The drugs included antibiotics, antivirals, erectile dysfunction drugs, birth control, hormones, pain killers, diuretics and anti-inflammatory medications such as the injectable corticosteroid anti-inflammatory Diprospan.
Rodriguez is not a physician or pharmacist. She also did not label the prescription drugs with specific physician instructions for each patient as required by law.
Rodriguez further admitted that she did not tell customers she obtained the prescription drugs outside of the legitimate supply chain from distributors who illegally and covertly smuggled the drugs into the United States.
U.S. District Judge Melinda Harmon accepted the guilty plea and has set sentencing for Jan. 26, 2018. At that time, she face s up to five years in federal prison for the conspiracy as well as another three years for receiving and delivering misbranded drugs in interstate commerce. She also faces fines up to $250,000. She will remain in custody pending that hearing.
Immigration and Customs Enforcement’s Homeland Security Investigations, Food and Drug Administration - Office of Criminal Investigations and the Houston Police Department - Major Offenders Division conducted the investigation. Assistant U.S. Attorney Julie Redlinger is prosecuting the case.
Texas Men Charged with Murder Outside Parole OfficeRead the Press Release
HOUSTON – A federal grand jury has returned a seven-count indictment against two men allegedly responsible for the killing of a man as he sat in his car outside a Houston parole office, announced Acting U.S. Attorney Abe Martinez and Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division.
Ronald Donell Brown aka Dorsey Robinson or Nook or Nookie, 44, and Clyde Williams aka Pete, 50, both of Houston, are charged with conspiracy to commit murder for hire, intentional killing related to drug trafficking and two counts of using a firearm in the commission of a murder. David Roberts aka Cuz, 42, of Houston, is also named in the indictment and charged with one count of conspiracy to distribute and possession with the intent to distribute cocaine. Brown is also charged in that count in addition to kidnapping and using a firearm in relation to a crime of violence.
The indictment alleges that on July 1, 2014, Marcus Celestine had a pre-arranged meeting with his parole officer in Houston. Shortly thereafter, he was shot numerous times as he sat in the driver’s seat of his vehicle in the parking lot, according to the charges.
The murder for hire conspiracy allegedly began after the victim and another individual were believed to have stolen cocaine from a member of Brown’s drug organization. Roberts and others regularly transported large quantities of cocaine for Brown, driving from Houston to Atlanta on a weekly basis, according to the indictment. In April 2014, Roberts received two duffle bags filled with cocaine. Soon after, he was allegedly robbed.
Brown believed Celestine and another individual were responsible for the robbery and he assembled a plan to kill them, according to the indictment. On April 23, 2014, Brown and others allegedly kidnapped the other individual, zip-tied his arms and legs and put him in the trunk of a car. While being transported, the victim was able to break free, open the trunk and jump out of the vehicle. According to the indictment, a good Samaritan saw him, picked him up and attempted to drive him to safety. However, Brown allegedly pursued them and eventually shot at them repeatedly, ultimately striking the good Samaritan in the upper body and the victim in the head. Both men survived the attack.
The indictment further alleges that following this failed attempt, Brown turned his attention to Celestine. Brown allegedly hired Williams to kill Celestine and provided him a firearm. Brown was able discover that Celestine was to meet with his parole officer on July 1, 2014, and informed Williams, according to the charges. Following that meeting, Celestine returned to his vehicle in the parking lot, at which time Williams allegedly fired multiple shots, some at close range. Celestine died at the scene.
Brown and Williams could potentially face the death penalty. For his role in the drug conspiracy, Roberts faces up to life in prison, if convicted.
This case is an example of coordination between law enforcement who are part of the Houston Law Enforcement Violent Crime Initiative announced in June 2017 which combines personnel and resources from numerous federal, state and local agencies. The goal of the initiative is to proactively fight and reduce violent crime across the Greater Houston area by targeting the region’s most violent offenders, augmenting investigative and prosecutorial efforts, and enhancing training, public awareness and education.
The FBI, Houston Police Department’s Homicide and Major Offenders Division, Texas Department of Criminal Justice, U.S. Bureau of Prisons, U.S. Marshals Service and the Texas Department of Public Safety conducted the investigation. Assistant U.S. Attorneys Steve Mellin and Sebastian Edwards are prosecuting the case along with Trial Attorney Teresa Polinske of the Department of Justice’s Capital Case Section.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Final Defendant Sentenced in Poly Drug ConspiracyRead the Press Release
CORPUS CHRISTI, Texas – A 28-year-old Mission man has been ordered to federal prison for 10 years following his conviction in a cocaine and marijuana drug trafficking conspiracy, announced Acting U.S. Attorney Abe Martinez. Bryan Mendoza, the last of five convicted in the conspiracy, pleaded guilty Dec. 28, 2016.
Today, U.S. District Judge Nelva Gonzales Ramos ordered he serve 120 months of imprisonment immediately followed by five years of supervised release.
The conspiracy ran from February 2009 to June 22, 2016, and included the seizure of more than 4,400 kilograms of marijuana and 23 kilograms of cocaine. Mendoza assisted the drug trafficking conspiracy by arranging the purchase of vehicles and hiring drivers to transport drugs from South Texas to other states.
Previously, co-defendants Cynthia Valencia, 25, a U.S. citizen who resided in Pharr and Reynosa, Tamaulipas, Mexico; and Mexican citizens Mario Alberto Medina-Mendoza, 30, Ismael Silva-Cortez, 37, and Alan Castillo, 38, had pleaded guilty to a related money laundering conspiracy. Castillo, who oversaw the movement of drug proceeds from other areas of the United States to South Texas, received a sentence of 70 months imprisonment. He primarily used the “old school” method of bulk cash smuggling in which he concealed large sums of cash in secret compartments within the vehicles he used to transport the drug proceeds.
Valencia, Silva-Cortez and Medina-Mendoza allowed their bank accounts to be used to funnel or launder approximately $51,710, $125,075 and $77,250 respectively, in drug proceeds. Silva-Cortez received a 37-month sentence, while Valencia and Medina-Mendoza were ordered to serve respective sentences of 18 and 33 months.
The Drug Enforcement Administration, IRS - Criminal Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives and Customs and Border Protection conducted the joint investigation. Assistant U.S. Attorney Kenneth Cusick is prosecuting the case.
Operation Trena Sin Trono Sends Leader and Final Defendants to PrisonRead the Press Release
LAREDO, Texas – The head of a large scale marijuana trafficking and money laundering conspiracy and 10 others have been sent to federal prison, announced Acting U.S. Attorney Abe Martinez.
Erasmo Trejo-Nava, 45, a Mexican National who resided in Laredo, was the head of a drug trafficking organization that received marijuana loads from Mexico and arranged to transport the marijuana to the Dallas area for himself and others. The organization used various stash houses and business fronts in the Laredo area to receive and prepare the marijuana for transportation via personal vehicles to a local warehouse where it was unloaded and reloaded onto tractor trailers for transportation to the Dallas area. Following delivery of marijuana loads in the Dallas area, the Trejo Nava Organization collected drug proceeds and arranged to have the drug proceeds transported by couriers via personal vehicle or tractor trailers to Laredo and on to Nuevo Laredo, Mexico.
Over the course of the conspiracy which spanned from June 10, 2011 through June 4, 2013, Drug Enforcement Administration (DEA) agents made multiple seizures of marijuana that totaled in excess of 10,000 kilograms.
U.S. District Judge Marina Garcia Marmolejo sentenced Trejo-Nava himself to a total term of 187 months in prison. The court also issued a money judgement against him in the amount of $5 million. His wife - Raquel Margarita Ramos Jimenez, 46, facilitated money laundering and was sentenced to time served which amounted to 31 months. Additionally the court issued a final order of forfeiture as to both of them for three residential properties and a commercial property as well as separate drug proceeds seizures in amounts totaling $173,240.
His brother and Mexican national Victor Hugo Trejo-Nava, 43, coordinated the shipment of marijuana loads as did Jose Angel Trejo, 45, of Laredo. They received 130 and 121 months in prison, respectively.
Mexican national Jaime Enrique Montalvo Ruiz, 47, and Laredoan Ovidio Rodriguez, 44, used Erasmo Trejo-Nava’s service to have their marijuana loads transported from Laredo to the Dallas area received respective sentences of 144 and 120 months in prison.
Arturo Lozano, 48, of Kaufman, and Leocadio Ruiz, 49, a Mexican national who resided in Cedar Hill, worked for Montalvo Ruiz in the Dallas area. Lozano received and distributed marijuana was ordered to serve a term of 144 months in prison, while Ruiz received drug shipments and collected drug proceeds and received a sentence of 70 months.
Laredoan Francisco Colin, 44, provided tractor trailers and drivers to Erasmo Trejo-Nava; Mario Alberto Rodriguez, 30, of Laredo, was Erasmo Trejo-Nava’s worker and wrapped and loaded marijuana; and Mexican national Gerardo Moreno Recio, 50, was a stash house operator. Colin received a 50-month prison term, while Rodriguez and Recio were ordered to serve total sentences of 120 and 151 months of imprisonment.
Ovido Rodriguez, Mario Rodriguez, Trejo, Colin and Lozano received varying terms of supervised release to serve following completion of their prison terms. Not U.S. citizens, the others are expected to face deportation proceedings following their release.
Today’s sentencings brings to a total 26 defendants convicted and sentenced in the investigation which included four indictments.
The remaining defendants received sentences ranging from 12 to 120 months in prison for their varying roles in the conspiracy.
The charges were the result of a long term Organized Crime Drug Enforcement Task Force Investigation dubbed Operation Trena Sin Trono spearheaded by the Drug Enforcement Administration, IRS - Criminal Investigation, High Intensity Drug Trafficking Area Task Force and with the assistance of Homeland Security Investigations, Laredo Police Department, Zavala County Sheriff’s Office. Assistant U.S. Attorney Mary Lou Castillo is prosecuting the case.
Laredo Woman Heads to Prison for Smuggling Drugs Through Port of EntryRead the Press Release
LAREDO, Texas – A 23-year-old woman has been sentenced for her role in a conspiracy to possess with intent to distribute and possession with intent to distribute methamphetamine, announced Acting U.S. Attorney Abe Martinez. Guadalupe Vazquez, of Laredo, pleaded guilty May 5, 2017.
Today, U.S. District Judge Diana Saldaña ordered Vazquez to serve a total of 18 months in federal prison to be immediately followed by three years of supervised release.
On Dec. 19, 2015, Vazquez took part in a conspiracy to smuggle 30 kilograms of liquid methamphetamine through the IH-35 checkpoint near Laredo. She was driving a 2003 BMW sedan in which 30 kilograms of liquid methamphetamine was found inside the gas tank of the vehicle.
Vazquez 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 Drug Enforcement Administration and Border Patrol conducted the investigation. Assistant U.S. Attorney José Angel Flores Jr. prosecuted the case.
Identity Thief Heads to PrisonRead the Press Release
CORPUS CHRISTI, Texas – A 38-year-old resident of Luling has been sentenced in Corpus Christi federal court for identity theft, announced Acting United States Attorney Abe Martinez. Joey Ornelas, 38, pleaded guilty May 26, 2017.
Today, U.S. District Judge Nelva Gonzales Ramos imposed a mandatory 24-month prison term to be immediately followed by one year of supervised release. At He was further ordered to pay nearly $4,000 in restitution.
During a traffic stop, authorities observed what they believed to be a counterfeit driver’s license. The license bore the name and driver’s license number of another person but displayed Ornelas’ photograph. Law enforcement conducted a search of his vehicle and discovered more than 20 additional counterfeit Texas Driver’s licenses. They also found fraudulent checks with names matching those on the counterfeit licenses but bearing the account and routing numbers of other individuals. Some of the checks and identities were linked to previous fraudulent purchases from around the state.
Also in his vehicle was equipment to produce high quality counterfeit checks including magnetic inks along with materials for creating fraudulent Texas driver’s licenses needed to pass counterfeit checks. Authorities determined Ornelas was receiving photographs of authentic driver’s licenses of unsuspecting victims from co-conspirators which he would use in the production of the counterfeit licenses.
At the time of his guilty plea, Ornelas admitted he had knowingly used the identification of others to facilitate the commission of his crimes.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Secret Service conducted the investigation with the assistance of the George West Police Department. Assistant U.S. Attorney Robert D. Thorpe Jr. is prosecuting the case.
Final Defendant Sentenced in Meth Trafficking ConspiracyRead the Press Release
McALLEN, Texas – A 27-year-old Mexican national who was illegally residing in Houston has been ordered to federal prison following his conviction for possession with intent to distribute methamphetamine, announced Acting U.S. Attorney Abe Martinez. Oscar Diaz-Pineda pleaded guilty May 3, 2017.
Today, Judge Alvarez ordered Diaz-Pineda to serve a 360-month sentence. His co-defendants - Mexican national Johnathan Ricardo Alvarez, 24, and El Salvadorian national Melvin Noel Vasquez, 33, who resided in Mission and Houston, respectively – were sentenced previously. Ricardo Alvarez received a 200-month sentence, while Vasquez was ordered to serve 147 months imprisonment.
At the previous hearing, the court heard that the methamphetamine was imported from Mexico in a liquid form and converted into crystalized methamphetamine at an apartment in Harris County for further distribution. Diaz-Pineda was determined to be the renter of the apartment under an alias name. In handing down the sentence, Judge Alvarez noted that Diaz maintained a ‘conversion lab’ at an apartment in Houston were liquid methamphetamine imported from Mexico was crystalized for further distribution within the area.
At the time of his plea, Ricardo Alvarez admitted to brokering a drug transaction with an undercover agent via telephone on Dec. 7, 2016. Two days later, Vasquez and Diaz-Pineda met with the undercover agent in Houston to deliver five kilograms of methamphetamine on behalf of Ricardo Alvarez. Agents arrested Vasquez and Diaz-Pineda that same day and seized the narcotics. Ricardo Alvarez was subsequently arrested on April 16, 2017, in South Texas.
All three have been and will remain in custody and are expected to face deportation proceedings following their sentences.
The Drug Enforcement Administration conducted the investigation along with task force officers from the Harris County Sheriff’s Office, police departments in Humble and Missouri City and the Texas Department of Public Safety. Assistant U.S. Attorney Juan F. Alanis is prosecuting the case.
Weapons Smuggler Sent to PrisonRead the Press Release
McALLEN, Texas – A 52-year-old Mexican citizen has been ordered to federal prison for attempting to smuggle firearm parts kits, components, receivers and magazines to Mexico, announced Acting U.S. Attorney Abe Martinez. Alejandro Cavazos, 52, pleaded guilty Feb. 3, 2017.
Today, U.S. District Judge Randy Crane sentenced Cavazos to 48 months in federal prison. Not a U.S. citizen, Cavazos is expected to face deportation proceedings following his release from prison. At the hearing, the court heard that Cavazos had taken possession of approximately 248 parcels of firearm parts from different Internet-based vendors since June 2014.
The investigation began in May 2016 when authorities identified Cavazos as having purchased more than $100,000 worth of firearms parts and accessories from Internet-based dealers. The purchases included AR-15 parts kits and unfinished AR-15 lower receivers.
The investigation revealed Cavazos would coordinate the delivery of the firearm parts to a local reshipment company where Cavazos would then retrieve the merchandise and smuggle it into Mexico. In October 2016, federal agents observed Cavazos retrieve 13 parcels from a local reshipment company and place the items in his vehicle. The parcels, destined for Mexico, were subsequently seized and found to contain 100 AR-type charging handles, 30 AR-15 lower receivers, 25 AR-15 7.62 x 39 mm magazines, 18 AR-15 assembly kits and 200 detachable AR-15 carry handles.
Cavazos 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 the Bureau of Alcohol, Tobacco, Firearms and Explosives and conducted the investigation. Assistant U.S. Attorney Rolando Cantu prosecuted the case.
Three Head to Federal Prison for Trafficking Drugs Through International Bridge and CheckpointRead the Press Release
LAREDO, Texas – Two men and one woman have been ordered to prison in separate, but similar crimes involving the smuggling of drugs, announced Acting U.S. Attorney Abe Martinez.
Isabel Gonzalez, 41, and Pedro Salas III, 33, each pleaded guilty in June 2017 to conspiracies to import liquid methamphetamine and marijuana, respectfully, while Miguel Angel Bautista-Anguiano, 25, entered his plea in May 2017 to conspiracy to import and importation of cocaine.
Today, U.S. District Judge Diana Saldana sentenced Gonzales to 46 months in federal prison. Judge Saldana also sentenced Salas today, to a 24-month-term of imprisonment. Bautista-Anguiano was sentenced in U.S. District Judge Marina Garcia Marmolejo’s court and received a sentence of 60 months. Salas and Gonzalez were further ordered to serve three years of supervised release. Not a U.S. citizen, Bautista-Anguiano is expected to face deportation proceedings following his release.
In her case, Gonzalez, of Houston, took part in a conspiracy to smuggle 32 kilograms of liquid methamphetamine through the Gateway to the Americas Port of Entry International Bridge II in Laredo. She was driving a 1999 Ford Explorer with the drugs hidden in a compartment inside the gas tank.
In a separate case that occurred at the same bridge, Miguel Angel Bautista-Anguiano, of Nuevo Laredo, Tamaulipas, Mexico, was driving a 1999 Mercury Cougar on Jan. 20, 2017, when he participated in a conspiracy to smuggle 11 kilograms of cocaine. The cocaine was found in the rear quarter panels of the vehicle.
The third case was initiated on March 10, 2017, when Salas, of Laredo, smuggled 103.6 kilograms of marijuana through the IH-35 checkpoint near Laredo. He was driving a 2010 Ford F-150. Authorities soon found the marijuana inside a tool box in the bed of the truck.
All three defendants have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security investigations and Customs and Border Protection conducted both investigations at the International Bridge, while the Drug Enforcement Administration and Border Patrol worked the case at the checkpoint. Assistant U.S. Attorney José Angel Flores Jr. prosecuted all three cases.
Department of Justice Settles Employment Discrimination Claim on Behalf of U.S. Army ReservistRead the Press Release
CORPUS CHRISTI, Texas - The United States Department of Justice has resolved a claim that the Duval County Sheriff’s Department violated the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) by terminating U.S. Army Reservist Jonathan J. Melendez on two occasions and retaliating against him after he pursed his claims in violation of USERRA, announced Acting U.S. Attorney Abe Martinez and Acting Assistant Attorney General John Gore of the Department of Justice’s Civil Rights Division. The United States Attorney’s Office for the Southern District of Texas represents Melendez in this matter and the parties have reached a settlement resolving all of his claims.
“Members of our armed service’s reserve forces make many sacrifices, including spending months or years away from their jobs and families,” said Martinez. “When they are deployed in the service of our country, their employment rights must be protected. They are entitled to retain their civilian employment and to the protections of federal law that prevent them from being subject to discrimination based upon their military obligations. My office and the Department of Justice are committed to ensuring that individuals do not lose their rights while they are protecting ours.”
“The legal rights of members of our armed forces, who sacrifice their lives every day defending our nation and its freedoms, must be respected,” said Gore. “This settlement sends a strong message that the Department of Justice is steadfast in its efforts to protect the rights of our servicemembers, their families and all veterans of the United States.”
Specialist Melendez was hired as a Deputy Sheriff on March 14, 2014, by the Duval County Sheriff’s Department. On Oct. 8, 2015, Melendez enlisted in the U.S. Army Reserves. Martinez alleged that Duval County discriminated against him in violation of USERRA on four occasions. These occasions include Melendez’s termination from the Sheriff’s Department on Jan. 1, 2016, while he was on leave for active military duty, his belated rehire upon his return from military duty in April 2016 and his termination again in October 2016 after he continued to pursue a USERRA lost wages claim against his former employer.
Congress enacted USERRA to encourage non-career service in the uniformed services by reducing employment disadvantages; to minimize the disruption to the lives of persons performing military service, their employers and others by providing for the prompt reemployment of such persons upon their completion of such service; and to prohibit discrimination against persons because of their service in the uniformed services or if they pursue a claim under USERRA.
Under the terms of the settlement, Duval County has agreed to compensate Melendez for his lost wages and benefits and pay him liquidated damages.
The U.S. Department of Labor (DOL) referred the matter following an investigation by their Veterans’ Employment and Training Service. The U.S. Attorney’s Office for the Southern District of Texas (SDTX) and the Employment Litigation Section of the Department of Justice’s Civil Rights Division are handling the case and work collaboratively with the DOL to protect the jobs and benefits of military service members.
Assistant U.S. Attorney Keith Edward Wyatt and Paralegal Specialist Raymond Babauta of the SDTX are handling the investigation along with Assistant Director Andrew Braniff of the Service Members and Veterans Initiative and Alicia Johnson of the Civil Rights Division’s Employment Litigation Section.
Corpus Christi Man Charged with Sex Trafficking of a ChildRead the Press Release
CORPUS CHRISTI, Texas - A 24-year-old Corpus Christi man has been charged with the attempted sex trafficking of a 14-year-old girl, announced Acting U.S. Attorney Abe Martinez.
A federal criminal complaint was filed yesterday against Marcus Anthony Tunchez. He was previously in custody on an unrelated firearms charge and is expected to make his initial appearance before U.S. Magistrate Judge B. Janice Ellington at 2:00 p.m. today on the new charges.
Tunchez was allegedly communicating with a person for the purpose of sex trafficking a child he believed was a 14-year-old girl. According to the charges, Tunchez expected to meet the child and transport her to a hotel where she would engage in a commercial sex act. Tunchez was taken into custody as he arrived at the designated meeting place.
If convicted, Tunchez faces a minimum of 10 years and up to life in federal prison and a possible $250,000 fine.
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.
This case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez, 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
Houston Man Gets Massive Sentence for Sex Trafficking of Minors for Commercial SexRead the Press Release
HOUSTON – A 22-year-old Houston man has been handed a significant federal prison sentence following his convictions of trafficking two children under the age of 18 for commercial sex, announced Acting U.S. Attorney Abe Martinez. Antonio Rasheed Benjamin aka “Papi P” pleaded guilty March 24, 2017.
Today, U.S. District Judge Melinda Harmon ordered Benjamin to prison for 360 months. Following that 30-year-sentence, Benjamin will serve 10 years of supervised release, during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. He will also be ordered to register as a sex offender.
The investigation into Benjamin began after a woman he had assaulted contacted authorities in March 2016.
Benjamin knew the girls were minors and groomed them to engage in commercial sex by promising them riches and a lavish lifestyle. He arranged for girls to work as strippers and prostitute for him. He regularly transported women to and from strip clubs, rented hotel rooms for the purpose of commercial sex acts and posted ads on backpage.com advertising the girls. Benjamin took all of the money the minors earned.
One of the victims said she felt obligated to live with Benjamin and was forced to prostitute for him. He would site next to her and instruct her on what to say to customers on the phone. She indicated that while she was with him, she worked every day and averaged two or more customers per night. Another victim stated that girls who stripped in clubs for him had to make $100 a night or “there were consequences.”
On more than one occasion, Benjamin left one of the victims stranded in unknown locations. Another victim recounted an incident in which Benjamin had punched her in the chest and it hurt for days.
Benjamin 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 Human Trafficking Rescue Alliance (HTRA) conducted the investigation. HTRA law enforcement includes members of the FBI, Immigration and Customs Enforcement’s Homeland Security Investigations, Houston Police Department, sheriff’s offices in Harris and Montgomery counties, Texas Alcoholic and Beverage Commission, Texas Attorney General’s Office, Department of State, Department of Labor, IRS and the Texas Department of Public Safety.
Established in 2004, the United States Attorney’s office in Houston formed the HTRA to combine resources with federal, state and local enforcement agencies and prosecutors, as well as non-governmental service organizations to target human traffickers while providing necessary services to those that the traffickers victimized. Since its inception, HTRA has been recognized as a national model in identifying and assisting victims of human trafficking and prosecuting those engaged in trafficking offenses. In 2016, the Human Trafficking Rescue Alliance received $1.5 million in federal funds from the Bureau of Justice Assistance and the Office for Victims of Crime through the Enhanced Collaborative Model Anti-Human Trafficking Task Force Program, which provides funding to investigate and prosecute cases of human trafficking and provide services to victims.
Assistant U.S. Attorney Sherri L. Zack is prosecuting this case.
Accountant Arrested for Fraud Scheme, Tax Evasion and Money LaunderingRead the Press Release
CORPUS CHRISTI, Texas – A 34-year-old former Corpus Christi man has taken into custody following the return of an indictment alleging a scheme to defraud his former employer of more than $160,000, announced Acting U.S. Attorney Abe Martinez.
A federal grand jury returned 20-count indictment against Brian Perez on Aug. 23,2017. He was taken into custody today in San Antonio where he will make his initial appearance before U.S. Magistrate Judge Henry Bemporad. He is expected to then appear in Corpus Christi in the near future.
Perez is a certified public accountant and is charged with 18 counts of wire fraud and one count each of tax evasion and money laundering.
While working as a bookkeeper, Perez allegedly devised a scheme to defraud his employer by unlawfully transferring funds using the Electronic Federal Tax Payments System from the company’s bank account to his personal taxpayer withholding account at the IRS. The indictment alleges Perez then filed his U.S. Income Tax Return and requested a refund of the overpayment.
Through this scheme, Perez defrauded his employer of $162,775 between March 9, 2015, and Aug. 7, 2015, according to the charges.
In May 2015, Perez allegedly laundered approximately $59,000 by using a financial institution to engage in a monetary transaction when he transferred criminally-derived funds from his personal checking account to an investment account. The indictment also charges Perez with tax evasion for filing a tax return knowing he had received significantly more income than the amount stated in the return.
Each conviction of wire fraud carries a potential 20-year maximum prison sentence. If convicted of the wire fraud or tax evasion charges, he also faces up to an additional 10-years and three years, respectively, in federal prison. All charges also carry a possible $250,000 fine.
IRS-Criminal Investigation and the FBI investigated. Assistant U.S. Attorney Robert D. Thorpe Jr. is prosecuting the case.
An indictment or information is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Undocumented Alien Handed 10-Year Sentence for Illegally Re-Entering the CountryRead the Press Release
McALLEN, Texas – An undocumented alien with serious prior convictions has been ordered to serve 120 months in federal prison, announced Acting U.S. Attorney Abe Martinez. Tomas Aquino-Pacheco, 38, pleaded guilty June 28, 2017, to illegal re-entry after prior deportation or removal.
Today, U.S. District Judge Micaela Alvarez imposed the lengthy sentence which was based on his prior criminal history. This was his second conviction for illegal re-entry, the first of which he served 33 months in federal prison. He was also convicted in 1999 for an offense involving more than 40 kilograms of cocaine and sentenced to 120 months imprisonment and again in 2012 for an offense involving more than 400 kilograms of marijuana for which he was sentenced to 60 months imprisonment.
On April 6, 2017, Border Patrol agents encountered Aquino near Hidalgo. They confirmed he was an undocumented alien who had illegally entered the United States. He had most recently been deported just a few months earlier on Nov. 30, 2016, following his previous release from prison.
Aquino will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. Not a U.S. citizen, Aquino is again expected to face deportation proceedings following his release from prison.
Customs and Border Protection and Border Patrol conducted the investigation. Assistant U.S. Attorney Kristen Rees prosecuted the case.
Six South Texas Residents Get Hefty Sentences in Conspiracy to Manufacture Military-Style GrenadesRead the Press Release
McALLEN, Texas – A total of six individuals have been ordered to federal prison for the illegal receipt, possession and manufacture of destructive devices that were not registered in the National Firearms Registration and Transfer Record, announced Acting U.S. Attorney Abe Martinez.
Noe Gonzalez, 19, of San Juan, pleaded guilty to one count of unlawfully transferring destructive devices and one count of making destructive devices that had not been registered in the National Firearms Registration and Transfer Record. Each of the other defendants - Anthony Ozuna, 20, Alfredo Rivera, 24, and Pedro Vega-Genova, 40, all of Edinburg; Celin Javier Montoya-Rodriguez, 23, a lawful permanent resident in Edinburg; and Jonathan Sanchez-Torres, 20, a Mexican undocumented alien who was residing in Pharr - pleaded guilty to two counts of unlawfully transferring destructive devices.
Today, U.S. District Judge Micaela Alvarez sentenced Vega-Genova to a term of 240 months in federal prison. Gonzalez was ordered to serve a 196-month-term, while Montoya-Rodriguez, Rivera and Sanchez-Torres will each serve 120 months. Ozuna was ordered to serve 100 months of imprisonment. With the exception of Sanchez-Torres and Montoya-Rodriguez, who are expected to face deportation proceedings following their release from prison, all will also serve three years of supervised release after completion of their sentences.
Agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) conducted a lengthy investigation which included undercover operations that exposed a conspiracy to manufacture military-style grenades that were intended to be sold and exported to Mexico.
ATF and HSI agents discovered that over a six-month-period, Gonzalez acquired all of the components necessary to construct more than 150 improvised hand grenades, including grenade hulls, spring kits, fuses and black powder, from a combination of online merchants and local stores. He assembled the grenades in a workshop located behind his home. As the grenades were completed, Sanchez-Torres delivered batches of the “live” hand grenades to Vega-Genova for distribution.
Vega-Genova worked with Montoya-Rodriguez, Ozuna and Rivera to sell the grenades. On four separate occasions between Nov. 5, 2016, and Nov. 9, 2016, agents purchased approximately 45 grenades directly from Vega, Montoya-Rodriguez, Ozuna and Rivera at a cost of $400 -$450 per grenade. ATF and HSI agents subsequently conducted surveillance and undercover operations that led to the discovery of the identity and location of the grenade manufacturer - Gonzalez.
Authorities learned that prior to the start of the investigation, the defendants had manufactured and sold approximately 50 grenades to other unknown individuals who were exporting the grenades to Mexico. At the time of his arrest, Gonzalez was in the process of acquiring components to manufacture an additional 200 grenades. Agents were able to intercept some of the component parts that were being shipped to Gonzalez’s residence.
All of the defendants have been in custody since their arrests on Dec. 6, 2016, where they will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
ATF and HSI conducted the investigation with the assistance of Texas Department of Public Safety, police departments in McAllen and Mission, Customs and Border Protection and Drug Enforcement Administration. Assistant U.S. Attorney David Paxton is prosecuting the case.
Mission Man Sentenced for Meth TraffickingRead the Press Release
McALLEN, Texas – A 27-year-old Mission man has been ordered to prison for possessing with the intent to distribute methamphetamine, announced Acting U.S. Attorney Abe Martinez. Bryon Olivera pleaded guilty March 3, 2016.
Today, U.S. District Judge Micaela Alvarez sentenced Olivera to 100 months in federal custody to be followed by three years of supervised release.
On Nov. 3, 2015, law enforcement were responding to a residence in Mission and found Olivera outside in possession of a pistol. They searched the house and a vehicle on the property and found two additional pistols, two shotguns, two assault rifles, multiple rounds of ammunition and approximately 1.5 kilograms of methamphetamine.
Olivera admitted the firearms and ammunition were destined for Mexico, while the methamphetamine was to be distributed further in the United States.
Previously released on bond, Olivera was taken into custody following the sentencing today pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigation with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Mission Police Department. Assistant U.S. Attorney Roberto Lopez Jr. prosecuted the case.
Legal Permanent Resident Sentenced to Prison for Importing MethRead the Press Release
BROWNSVILLE, Texas – A 56-year-old legal permanent resident alien who resided in Matamoros has been ordered to prison following his conviction of methamphetamine trafficking, announced Acting U.S. Attorney Abe Martinez. A federal jury convicted Martin Araiza-Jacobo on June 14, 2017, for conspiracy to possess and possession of methamphetamine with intent to deliver as well as conspiracy to import and importation of methamphetamine following a two-day trial and approximately two hours of deliberation.
Today, U.S. District Judge Rolando Olvera handed Araiza-Jacobo a 120-month sentence. Not a U.S. citizen, Araiza-Jacobo is expected to face loss of his legal status in the U.S. and deportation proceedings following his release from prison.
On Jan. 19, 2017, Araiza-Jacobo attempted to enter the United States through a pedestrian lane at the Gateway International Bridge, at which time he declared that he was bringing in sandwiches and two bags of candies from Mexico.
A Customs and Border Protection (CBP) officer inspected the bags and immediately noticed the candies inside the bag did not match with the candy images displayed on the bag. The contents also felt harder than expected. Authorities conducted an X-ray examination which revealed anomalies in both bags. Officers then opened the bags and discovered 83 packages containing 5.19 kilograms of methamphetamine.
Araiza-Jacobo stated he worked as a “cruzador” or a person who helps people cross groceries from the United States to Mexico. He claimed he had crossed into Mexico earlier that day to buy a sandwich for a lady and met an unknown man there who asked him to cross the bags of candy. The man was supposed to call Araiza-Jacobo once back in the U.S. and would give him the name and description of the person to whom he would deliver the candy. Araiza-Jacobo denied ever seeing or talking to the unknown man before.
However, the jury heard evidence that Araiza-Jacobo had been in contact with this man since Jan. 16, 2017. Further, Araiza-Jacobo had actually initiated the contact. Testimony revealed that Araiza-Jacobo had overheard part of a conversation in which a man was looking for someone willing to cross a piñata and a box of candy into the U.S. and ship it to Atlanta, Georgia. Araiza-Jacobo got the man’s number and called him. Less than an hour later, Araiza-Jacobo commented that the trip was set.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorneys Israel Cano III and Jason Corley are prosecuting the case.
Former Border Patrol Agent Sentenced for Making a False StatementRead the Press Release
McALLEN, Texas ‐ A former Border Patrol (BP) agent has been ordered to prison for making a false statement regarding a narcotics seizure, announced Acting U.S. Attorney Abe Martinez. Eduardo Bazan, 49, of Edinburg, pleaded guilty June 30, 2017.
Today, U.S. District Judge Randy Crane ordered Bazan to serve a 24-month sentence to be immediately followed by three years of supervised release.
As part of an ongoing investigation, law enforcement learned that a 66-kilogram load of cocaine that BP seized in 2007 may have been staged with sham, or diluted, narcotics to allow drug traffickers to steal the original narcotics from unwitting sources of supply.
On Oct. 31, 2016, Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) interviewed Bazan who had been a BP agent assigned to the McAllen Border Station. He falsely stated that in February 2007 he had unsuccessfully attempted to apprehend individuals running from a vehicle. Upon returning to that vehicle, he saw other agents recovering the bundles of cocaine.
On Nov. 1, 2016, Bazan admitted he had lied to agents and that the load vehicle had been abandoned. Bazan ran from the scene to make other agents believe the vehicle had been occupied. Bazan further admitted to receiving $8,000 for assisting the drug traffickers with the staged seizure.
Bazan was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
This case was part of an Organized Crime Drug Enforcement Task Force Investigation dubbed Operation Blue Shame. ICE-HSI, Drug Enforcement Administration and IRS - Criminal Investigations conducted the investigation. Assistant U.S. Attorneys Anibal J. Alaniz and Kristen Rees prosecuted the case.
New Jersey, Florida, Arizona and Pennsylvania Men Latest to Plead Guilty in Multimillion Dollar India-Based Call Center Scam Targeting U.S. VictimsRead the Press Release
Four more defendants pleaded guilty to conspiracy and passport fraud charges during the past month for their roles in liquidating and laundering victim payments generated through a massive telephone impersonation fraud and money laundering scheme perpetrated by a network of India-based call centers.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Abe Martinez of the Southern District of Texas, U.S. Attorney John A. Horn of the Northern District of Georgia, Acting Deputy Director Peter T. Edge of U.S. Immigration and Customs Enforcement (ICE), Inspector General J. Russell George of the U.S. Treasury Inspector General for Tax Administration (TIGTA) and Inspector General John Roth of the U.S. Department of Homeland Security Office of Inspector General (DHS-OIG) made the announcement.
Nisarg Patel, 26, most recently residing in Flemington, N.J., Dilipkumar Ramanlal Patel, 30, of Ocala, Fla., and Rajesh Kumar, 39, of Mesa, Ariz., each pleaded guilty to one count of conspiracy to commit fraud and money laundering offenses. The pleas were entered before U.S. District Judge David Hittner of the Southern District of Texas. All three men have been in federal custody since their arrests in October 2016 and will remain detained until their pending sentencing dates.
In a related case, Dipakkumar Sankalchand Patel, 38, most recently of Pennsylvania, pleaded guilty to one count of conspiracy to commit money laundering. The plea was entered before U.S. District Court Judge Eleanor L. Ross of the Northern District of Georgia. Dipakkumar Sankalchand Patel has been in federal custody since his arrest in May 2017 and will remain detained until his pending sentencing date.
According to admissions made in connection with their pleas, Nisarg Patel, Dilipkumar Ramanlal Patel, Kumar, Dipakkumar Sankalchand Patel and their co-conspirators perpetrated a complex scheme in which individuals from call centers located in Ahmedabad, India, impersonated officials from the IRS and U.S. Citizenship and Immigration Services (USCIS), and engaged in other telephone call scams, in a ruse designed to defraud victims located throughout the U.S. Using information obtained from data brokers and other sources, call center operators targeted U.S. victims who were threatened with arrest, imprisonment, fines or deportation if they did not pay alleged monies owed to the government. Victims who agreed to pay the scammers were instructed how to provide payment, including by purchasing stored value cards or wiring money. Upon payment, the call centers would immediately turn to a network of “runners” based in the U.S. to liquidate and launder the fraudulently obtained funds.
In connection with his guilty plea, Nisarg Patel admitted that beginning in or around June 2013 and continuing through December 2015, he acted as a domestic runner in the criminal scheme, liquidating victim funds for conspirators from India-based call centers and organizational co-defendant HGLOBAL. Patel communicated about the fraudulent scheme with various India-based co-defendants via telephone, email and WhatsApp text messaging. For a percentage of commission on the transactions he conducted, Patel laundered funds from victims using reloadable cards and deposited those proceeds into various bank accounts or shipped them via package carriers to others in furtherance of the scheme and at the direction of a codefendant. Patel also admitted to receiving direct payments to his personal bank accounts from victims defrauded through the scheme.
In connection with his guilty plea, Dilipkumar Ramanlal Patel admitted that beginning in or around August 2013 and continuing through February 2014, he served as a runner, liquidating victim scam funds per the instructions of conspirators from India-based call centers. Dilipkumar Ramanlal Patel communicated via phone and email in furtherance of the criminal scheme with his India-based associates, including by sending lists of reloadable card numbers to be activated and loaded with victim funds by conspirators in India. Dilipkumar Ramanlal Patel and his conspirators then used the reloadable cards containing funds derived from victims by scam callers to purchase money orders and deposit them into various bank accounts as directed, in return for cash payments or commissions.
Based on admissions in Kumar’s plea, beginning in or around September 2014, Kumar also operated as a runner, laundering scam proceeds from reloadable cards and purchasing money orders using those funds in and around south-central Arizona at the direction of both domestic and India-based co-defendants. Kumar also admitted to using fraudulent identification documents, including drivers’ licenses, to receive wire transfers of money directly from victims of the fraud scheme.
According to Dipakkumar Sankalchand Patel’s guilty plea, beginning in or around September 2014 through in or around June 2015, Dipakkumar Sankalchand Patel served as a runner liquidating victim scam funds per the instructions of conspirators operating in the Chicago, Illinois, area and elsewhere throughout the country. Dipakkumar Sankalchand Patel communicated via WhatsApp messaging with U.S. and India-based associates about liquidating victim funds that had been consolidated on reloadable cards. Dipakkumar Sankalchand Patel then purchased money orders and deposited them into various bank accounts as directed. Additionally, Dipakkumar Sankalchand Patel admitted to entering the U.S. on or about March 26, 2012 through Atlanta’s Hartsfield Jackson International Airport on a fraudulent Portuguese passport that was issued to him under an alias.
To date, Nisarg Patel, Dilipkumar Ramanlal Patel, Kumar, 53 other individuals and five India-based call centers have been charged for their roles in the fraud and money laundering scheme in an indictment returned by a federal grand jury in the Southern District of Texas on Oct. 19, 2016. Dipakkumar Sankalchand Patel was charged via a separate indictment in the Northern District of Georgia on May 3. Including the pleas announced today, a total of 17 defendants have pleaded guilty thus far in relation to this investigation on various dates between April and July 2017.
The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
ICE’s Homeland Security Investigations, DHS-OIG and TIGTA led the investigation of this case. Also providing significant support were: the Criminal Division’s Office of International Affairs; Ft. Bend County, Texas, Sheriff’s Office; police departments in Hoffman Estates and Naperville, Illinois, and Leonia, New Jersey; San Diego County District Attorney’s Office Family Protection and Elder Abuse Unit; U.S. Secret Service; U.S. Small Business Administration, Office of Inspector General; IOC-2; INTERPOL Washington; USCIS; U.S. State Department’s Diplomatic Security Service; and U.S. Attorneys’ Offices in the Middle District of Alabama, Northern District of Alabama, District of Arizona, Central District of California, Northern District of California, District of Colorado, Northern District of Florida, Middle District of Florida, Northern District of Illinois, Northern District of Indiana, District of Nevada and District of New Jersey. The Federal Communications Commission’s Enforcement Bureau also provided assistance in TIGTA’s investigation.
Senior Trial Attorney Michael Sheckels and Trial Attorney Mona Sahaf of the Criminal Division’s Human Rights and Special Prosecutions Section, Trial Attorney Amanda Wick of the Criminal Division’s Money Laundering and Asset Recovery Section, Assistant U.S. Attorneys S. Mark McIntyre and Craig M. Feazel of the Southern District of Texas, and Assistant U.S. Attorney Jessica C. Morris of the Northern District of Georgia are prosecuting these cases.
A Department of Justice website has been established to provide information about the case to already identified and potential victims and the public. Anyone who believes they may be a victim of fraud or identity theft in relation to this investigation or other telefraud scam phone calls may contact the Federal Trade Commission (FTC) via this website.
Anyone who wants additional information about telefraud scams generally, or preventing identity theft or fraudulent use of their identity information, may obtain helpful information on the IRS tax scams website, the FTC phone scam website and the FTC identity theft website.
Four More Men Convicted in Multimillion Dollar India-Based Call Center Scam Targeting U.S. VictimsRead the Press Release
HOUSTON – New Jersey, Florida, Arizona and Pennsylvania Men are the latest to plead guilty for their roles in liquidating and laundering victim payments generated through a massive telephone impersonation fraud and money laundering scheme perpetrated by a network of India-based call centers.
Acting U.S. Attorney Abe Martinez of the Southern District of Texas made the announcement along with Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney John A. Horn of the Northern District of Georgia, Acting Deputy Director Peter T. Edge of U.S. Immigration and Customs Enforcement (ICE), Inspector General J. Russell George of the U.S. Treasury Inspector General for Tax Administration (TIGTA) and Inspector General John Roth of the U.S. Department of Homeland Security Office of Inspector General (DHS-OIG)
Nisarg Patel, 26, most recently residing in Flemington, New Jersey; Dilipkumar Ramanlal Patel, 30, of Ocala, Florida; and Rajesh Kumar, 39, of Mesa, Arizona, each pleaded guilty to one count of conspiracy to commit fraud and money laundering offenses. The pleas were entered before U.S. District Judge David Hittner of the Southern District of Texas. All three men have been in federal custody since their arrests in October 2016 and will remain detained until their pending sentencing dates.
In a related case, Dipakkumar Sankalchand Patel, 38, most recently of Pennsylvania, pleaded guilty to one count of conspiracy to commit money laundering. The plea was entered before U.S. District Judge Eleanor L. Ross of the Northern District of Georgia. Dipakkumar Sankalchand Patel has been in federal custody since his arrest in May 2017 and will remain detained until his pending sentencing date.
According to admissions made in connection with their pleas, these four men and their co-conspirators perpetrated a complex scheme in which individuals from call centers located in Ahmedabad, India, impersonated officials from the IRS and U.S. Citizenship and Immigration Services (USCIS), and engaged in other telephone call scams, in a ruse designed to defraud victims located throughout the United States. Using information obtained from data brokers and other sources, call center operators targeted U.S. victims who were threatened with arrest, imprisonment, fines or deportation if they did not pay alleged monies owed to the government. Victims who agreed to pay the scammers were instructed how to provide payment, including by purchasing stored value cards or wiring money. Upon payment, the call centers would immediately turn to a network of “runners” based in the United States to liquidate and launder the fraudulently-obtained funds.
In connection with his guilty plea, Nisarg Patel admitted that beginning in or around June 2013 and continuing through December 2015, he acted as a domestic runner in the criminal scheme, liquidating victim funds for conspirators from India-based call centers and organizational co-defendant HGLOBAL. Patel communicated about the fraudulent scheme with various India-based co-defendants via telephone, email and WhatsApp text messaging. For a percentage of commission on the transactions he conducted, Patel laundered funds from victims using reloadable cards and deposited those proceeds into various bank accounts or shipped them via package carriers to others in furtherance of the scheme and at the direction of a codefendant. Patel also admitted to receiving direct payments to his personal bank accounts from victims defrauded through the scheme.
In connection with his guilty plea, Dilipkumar Ramanlal Patel admitted that beginning in or around August 2013 and continuing through February 2014, he served as a runner, liquidating victim scam funds per the instructions of conspirators from India-based call centers. Dilipkumar Ramanlal Patel communicated via phone and email in furtherance of the criminal scheme with his India-based associates, including by sending lists of reloadable card numbers to be activated and loaded with victim funds by conspirators in India. Dilipkumar Ramanlal Patel and his conspirators then used the reloadable cards containing funds derived from victims by scam callers to purchase money orders and deposit them into various bank accounts as directed, in return for cash payments or commissions.
Based on admissions in Kumar’s plea, beginning in or around September 2014, Kumar also operated as a runner, laundering scam proceeds from reloadable cards and purchasing money orders using those funds in and around south-central Arizona at the direction of both domestic and India-based co-defendants. Kumar also admitted to using fraudulent identification documents, including drivers’ licenses, to receive wire transfers of money directly from victims of the fraud scheme.
According to Dipakkumar Sankalchand Patel’s guilty plea, beginning in or around September 2014 through in or around June 2015, he served as a runner liquidating victim scam funds per the instructions of conspirators operating in the Chicago, Illinois, area and elsewhere throughout the country. Dipakkumar Sankalchand Patel communicated via WhatsApp messaging with U.S. and India-based associates about liquidating victim funds that had been consolidated on reloadable cards. He then purchased money orders and deposited them into various bank accounts as directed. Additionally, he admitted to entering the U.S. on or about March 26, 2012, through Atlanta’s Hartsfield Jackson International Airport on a fraudulent Portuguese passport that was issued to him under an alias.
To date, Nisarg Patel, Dilipkumar Ramanlal Patel, Kumar, 53 other individuals and five India-based call centers have been charged for their roles in the fraud and money laundering scheme in an indictment returned by a federal grand jury in the Southern District of Texas on Oct. 19, 2016. Dipakkumar Sankalchand Patel was charged via a separate indictment in the Northern District of Georgia on May 3. Including the pleas announced today, a total of 17 defendants have pleaded guilty thus far in relation to this investigation on various dates between April and July 2017.
The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
ICE’s Homeland Security Investigations, DHS-OIG and TIGTA led the investigation of this case. Also providing significant support were: the Criminal Division’s Office of International Affairs; Ft. Bend County, Texas, Sheriff’s Office; police departments in Hoffman Estates and Naperville, Illinois, and Leonia, New Jersey; San Diego County District Attorney’s Office Family Protection and Elder Abuse Unit; U.S. Secret Service; U.S. Small Business Administration, Office of Inspector General; IOC-2; INTERPOL Washington; USCIS; U.S. State Department’s Diplomatic Security Service; and U.S. Attorneys’ Offices in the Middle District of Alabama, Northern District of Alabama, District of Arizona, Central District of California, Northern District of California, District of Colorado, Northern District of Florida, Middle District of Florida, Northern District of Illinois, Northern District of Indiana, District of Nevada and District of New Jersey. The Federal Communications Commission’s Enforcement Bureau also provided assistance in TIGTA’s investigation.
Assistant U.S. Attorneys S. Mark McIntyre and Craig M. Feazel of the Southern District of Texas, Senior Trial Attorney Michael Sheckels and Trial Attorney Mona Sahaf of the Criminal Division’s Human Rights and Special Prosecutions , Trial Attorney Amanda Wick of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorney Jessica C. Morris of the Northern District of Georgia are prosecuting these cases.
A Department of Justice website has been established to provide information about the case to already identified and potential victims and the public. Anyone who believes they may be a victim of fraud or identity theft in relation to this investigation or other telefraud scam phone calls may contact the Federal Trade Commission (FTC) via this website.
Anyone who wants additional information about telefraud scams generally, or preventing identity theft or fraudulent use of their identity information, may obtain helpful information on the IRS tax scams website, the FTC phone scam website and the FTC identity theft website.
Repeat Offender Sent to Federal Prison for Firearms ChargeRead the Press Release
HOUSTON – A 39-year-old Houston man has been ordered to federal prison following his conviction for possession of a firearm by a convicted felon, announced Acting U.S. Attorney Abe Martinez. Ronnie Thomas pleaded guilty May 15, 2017.
Today, U.S. District Judge Vanessa D. Gilmore handed Thomas a total sentence of 100 months in federal prison to be immediately followed by three years of supervised release.
On Aug. 17, 2016, law enforcement attempted to stop Thomas on Belarbor Street in Houston after he failed to stop at a stop sign and failed to signal a right turn. Instead, Thomas led officers on a car chase through a residential area. Five police vehicles were ultimately involved with Thomas reaching speeds of 80 miles per hour.
After nearly three miles, Thomas crashed into a parked vehicle at a house on Belneath Street. He then got out of the vehicle, carrying a backpack, and led officers on a foot chase through several backyards. He was apprehended as he attempted to climb a fence surrounding a house on Belgard Street.
Upon his arrest, law enforcement officers discovered a gun, two high-capacity extended magazines and nine different types of drugs, including heroin, methamphetamine, zolpidem, cocaine, promethazine, ecstasy, methadone, codeine and marijuana.
Thomas has 12 Texas state criminal convictions as well as two previous convictions in federal court for possession of a firearm by a convicted felon and is thereby, prohibited from possessing a firearm per federal law.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney Sam Brown IV is prosecuting the case.
Man Pleads Guilty to Preparing False Income Tax ReturnRead the Press Release
HOUSTON – A local tax return preparer has entered a guilty plea to willfully aiding and assisting in the preparation of a false tax return for one of his clients, announced Acting U.S. Attorney Abe Martinez.
In the plea agreement filed in the record of the case, Ryan Damont Akers admitted he prepared income tax returns for clients and that he opened his own tax preparation business in Houston named Capital Income Tax. Akers willfully placed several false items on the tax return, including false losses from a sole proprietorship, a false net long term capital loss, false amounts of gifts to charity and false unreimbursed employee expenses. Akers further admitted he claimed a false income tax refund on the tax return that resulted in an intended tax harm to the IRS of approximately $16,695.
According to the plea agreement, Akers prepared a total of 32 false income tax returns for clients with a total intended tax loss of more than $134,000. Akers also prepared a false 2014 U.S. Individual Income Tax Return for an undercover IRS agent posing as a taxpayer, claiming a false income tax refund of more than $4,000 when the tax return should have reflected an amount due of $530.
U.S. District Judge Vanessa Gilmore accepted the plea and has set sentencing for Nov. 20, 2017. At that time, Akers faces up to three years in federal prison and a possible $250,000 maximum fine. He was permitted to remain on bond pending that hearing.
IRS - Criminal Investigation conducted the investigation. Assistant U.S. Attorney Charles J. Escher is prosecuting the case.
Several Local Residents Slammed with Significant Sentences in Hostage Taking ConspiracyRead the Press Release
McALLEN, Texas – Several men who resided in the Mission area have been ordered to prison for their involvement in an illegal alien hostage taking scheme, announced Acting U.S. Attorney Abe Martinez.
Luis Aguilar Jr., 19; brothers Alhan Sanchez, 20, and Aaron Sanchez, 21, and Ricardo Renteria, 26, all of Mission; and Renteria’s nephew Ricardo Renteria-Rivera, 23, a Mexican citizen illegally present in the United States, all pleaded guilty to a conspiracy to commit hostage taking.
In handing down the sentences, U.S. District Judge Micaela Alvarez said that a strong message needs to be sent and ordered Aguilar to serve 350 months in federal prison. Brothers Alhan and Aaron Sanchez were sentenced to 324 and 195 months, respectively. Renteria-Rivera was ordered to serve a 290-month-sentence, while his uncle will serve a sentence of 300 months imprisonment.
Aguilar Jr.’s father, Luis Aguilar, 64, and Jose Luis Rodriguez-Melchor, 30, both pleaded guilty to being an illegal alien unlawfully present in the United States after deportation and to harboring an illegal alien and were sentenced to 97 and 105 months, respectively. They and Renteria-Rivera are expected to face deportation proceedings following their release from prison, while the remaining defendants were further ordered to serve three years of supervised release following their release from prison.
The investigation revealed that a group of illegal aliens had been held at a stash house awaiting further transportation north. On the night of May 2, 2016, a home invasion crew that included an armed Aguilar Jr. came into the stash house and demanded the aliens leave with them. The caretaker of the stash house was on the ground with a gun to his head. The aliens were then taken to another location where their cell phones and most of their belongings were taken from them.
Some of the undocumented aliens were taken to Aguilar Jr.’s residence which he shared with his father. While there, Aguilar Jr. told them that their initial smuggling arrangements were no good anymore and they had to make new arrangements with him. Aguilar Jr. held them at gunpoint and demanded the aliens give him the names and phone numbers of family members whom he then called to demand $2,000 for their release.
After receiving the money, Aguilar Jr. turned the aliens over to Rodriguez-Melchor to arrange smuggling the aliens further north. Instead, however, Rodriguez-Melchor sold the aliens to Renteria-Rivera for $200 each. Again, family members were called and told they must send additional monies to secure their release. The Renterias carried weapons and threatened to shoot the aliens if anyone tried to escape. Renteria helped pick up the money and then took the aliens to a parking lot in McAllen where they were supposed to sneak into the air dams of tractor-trailers.
Instead of doing so, three of the aliens turned themselves in to Border Patrol. On May 18, 2016, authorities executed three search warrants. At that time, they seized firearms from the Aguilar, Sanchez and Renteria residences. All of the defendants were eventually located and arrested.
All have been in federal custody since their arrests and will remain in custody pending their transfer to the Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations and Border Patrol conducted the investigation. Assistant U.S. Attorney Joseph Leonard is prosecuting the case.
Mexican Truck Driver Admits to Smuggling Meth in Aloe Vera BottlesRead the Press Release
LAREDO, Texas – A 31-year-old Mexican National has entered a guilty plea to conspiracy to import methamphetamine, announced Acting U.S. Attorney Abe Martinez.
Sergio Aguilar-Hernandez conspired with others and imported methamphetamine from Mexico into Laredo on June 15, 2017. On that date, Aguilar-Hernandez arrived at the Columbia Solidary Bridge driving a 2007 Freightliner tractor. During a search of the vehicle authorities discovered 10.26 kilograms of liquid methamphetamine that was concealed in aloe vera bottles.
Sentencing will be set at a later date. At that time, Aguilar-Hernandez faces a minimum of 10 years and up to life in prison as well as a possible $10 million maximum fine. He has been and will remain in custody pending that hearing.
Immigration and Customs Enforcement’s Homeland Security Investigations and Customs and Border Protection conducted the investigation. Assistant U.S. Attorney José Angel Moreno is prosecuting the case.
Las Autoridades Anuncian la Formación de un Grupo de Trabajo para Combatir la Actividad Ilegal Relacionada con el Huracán HarveyRead the Press Release
HOUSTON - Representantes de diversas dependencias federales y estatales de las fuerzas del orden público han formado un grupo de trabajo para investigar y enjuiciar actividad ilegal relacionada con el Huracán Harvey.
El Fiscal Federal Interino Abe Martinez hizo el anuncio junto con el Fiscal Federal Interino Corey R. Amundson del Distrito Medio de Louisiana, quien se desempeña como Director Ejecutivo Interino del Centro Nacional contra Fraudes en Desastres [National Center for Disaster Fraud (NCDF)]; la Fiscal de Distrito (DA) del Condado de Harris Kim Ogg; el Procurador General de Texas Ken Paxton; el Director Shamoil T. Shipchandler de la Comisión de Bolsa y Valores [Securities and Exchange Commission (SEC)], Oficina Regional de Fort Worth; el Agente Especial a Cargo Perrye K. Turner del FBI; el Agente Especial a Cargo David Green de la Oficina del Inspector General del Departamento de Seguridad Nacional [Department of Homeland Security – Office of Inspector General (DHS-OIG)]; el Agente Especial a Cargo Mark Dawson de Investigaciones de Seguridad Nacional [Homeland Security Investigations (HSI)] del Servicio de Inmigración y Control de Aduanas; el Agente Especial a Cargo D. Richard Goss de Investigaciones Penales (CI) del IRS; el Agente Especial a Cargo Douglas W. Thigpen del Servicio Secreto de los EE.UU. [U.S. Secret Service (USSS)]; la Directora Regional Dama Brown de la Comisión Federal de Comercio [Federal Trade Commission (FTC)] y el Agente Especial a Cargo Fred Milanowski de la Oficina de Control de Bebidas Alcohólicas, Tabaco, Armas de Fuego y Explosivos [Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF)].
“Este desastre ha generado y seguirá generando una pérdida humana y financiera sin precedentes para nuestras comunidades, y las víctimas de este suceso ya han sufrido una devastación impactante”, dijo Martinez. “Lo último que necesitan las víctimas de este daño es que las vuelvan a victimizar. Aplicando las lecciones aprendidas del Huracán Katrina, implementamos un enfoque integral de coacción para combatir cualquier actividad delictiva que surja de la tragedia del Huracán Harvey y las tareas de reconstrucción que se están realizando”.
Si bien cada una de estas dependencias tiene un historial de trabajo conjunto, juntarlas en un grupo de enfoque es una manera óptima de abordar las diversas amenazas surgidas del Huracán Harvey. El grupo de trabajo involucrará a todos los niveles de las fuerzas del orden público e incluye a representantes de la Oficina del Procurador General para el Distrito Sur de Texas, el NCDF, la Oficina de la DA del Condado de Harris, la Oficina del Procurador General de Texas, la SEC, el FBI, la DHS-OIG, HSI, IRS-CI, el USSS, la FTC y la ATF.
Las autoridades ya están recibiendo llamadas sobre ardides en nuestra zona y han remitido las quejas a las dependencias correspondientes.
“Planeamos usar todos los recursos que tenemos a nuestra disposición para ayudar a nuestros inscritos y para responsabilizar a quienes intenten usar este desastre para aprovecharse de otras personas”, dijo el Director de la SEC, Jay Clayton. “No hay lugar para el fraude o prácticas turbias en la reconstrucción y la recuperación de las comunidades de Texas y Louisiana que han sido afectadas por el Huracán Harvey”.
“Mientras trabajamos para reconstruir la región de Houston/la Costa del Golfo y buscamos maneras de ayudar, es importante realizar tareas de diligencia debida antes de realizar aportes a cualquiera que solicite donaciones o a personas que ofrezcan brindar ayuda a los afectados por Harvey, ya sea que esas solicitudes se realicen en persona, por correo electrónico o por teléfono”, dijo Turner. “El FBI se dedica a investigar y prevenir este tipo de fraude, en especial cuando implica aprovecharse de personas en tiempos de grandes necesidades”.
“Como hemos observado a lo largo de este desastre, lo mejor del espíritu estadounidense sale a relucir cuando vecinos y extraños se ayudan unos a otros. Lamentablemente, al mismo tiempo, estas situaciones también hacen aparecer a quienes intentan aprovecharse de quienes están dispuestos a dar algo para ayudar”, dijo Dawson. “Quédense tranquilos que HSI, en coordinación con nuestros asociados en las fuerzas del orden público, utilizará sus recursos investigativos para detener a quienes buscan aprovecharse de esta situación para su propio beneficio personal e ilegal”.
Los desastres naturales a menudo sacan a relucir lo mejor de la compasión y el espíritu humano, pero también pueden hacer que personas inescrupulosas se aprovechen de quienes necesitan y/o brindan servicios gubernamentales. Algunos ejemplos de actividad ilegal típica bajo la jurisdicción de cada una de las dependencias del grupo de trabajo son:
Hacerse pasar por agentes de las fuerzas del orden público federal
- Robo de identidad
- Presentación fraudulenta de reclamos a aseguradoras y el gobierno federal
- Actividad fraudulenta relacionada con la solicitud de donaciones y la beneficencia
- Actividad fraudulenta relacionada con personas y organizaciones que prometen altos retornos de inversión por ganancias en tareas de recuperación y limpieza
- Abuso en los precios
- Robos, saqueos y otros delitos violentos
Los consumidores también pueden denunciar ardides y otros problemas del consumidor a la FTC y obtener ayuda si piensan que pueden ser víctimas de robo de identidad.
Se alienta a miembros del público a contactar al NCDF para informar todo tipo de fraude relacionado con los desastres. El Departamento de Justicia de los EE.UU. estableció el NCDF después del Huracán Katrina cuando se destinaron miles de millones de dólares en asistencia federal para desastres a la región de la Costa del Golfo. Su misión se ha ampliado para incluir las sospechas de fraude de cualquier desastre natural o generado por el hombre e incluye a más de 30 dependencias federales, estatales y locales de las fuerzas del orden público. El equipo incluye a agentes de las fuerzas del orden público que revisan esas denuncias y las remiten a las dependencias investigativas correspondientes. El NCDF ofrece resolución de conflictos, coordinación y conocimientos en la gestión de asuntos relacionados con el fraude asociado a los desastres y está enfocado en proteger a las víctimas de desastres y todos los fondos dedicados a víctimas de desastres.
La Línea Directa de Fraude en Desastres es 1-866-720-5721 y tiene operadores disponibles las 24 horas del día, los siete días de la semana. Los miembros del público también pueden enviar información por correo electrónico o por fax al 225-334-4707.
Además, la Oficina del Procurador General de Texas les pide encarecidamente a los texanos que se comuniquen con su División de Protección al Consumidor y presenten una queja si sienten que encontraron un abuso de precios o han sido engañados o sido víctimas de un fraude relacionado con beneficencias. Pueden llamar a la línea directa gratuita al 800-621-0508, enviar un correo electrónico o presentar una queja a través de Internet.
La SEC brindó esta información y sigue controlando el impacto en el mercado del Huracán Harvey y alentando a entidades y profesionales de inversión afectados a comunicarse con el personal de la Comisión si tienen cualquier pregunta o inquietud.
Para obtener información adicional, también se puede visitar la página de recursos de la FEMA para el Huracán Harvey.
El Departamento de Justicia también anunció ayer Consejos para evitar ardides fraudulentos de donaciones a beneficencias.
Laredoan Pleads Guilty to Importing MethRead the Press Release
LAREDO, Texas – A Laredo man has entered a guilty plea to a conspiracy charge for his role in the importation of methamphetamine, announced Acting U.S. Attorney Abe Martinez.
Ricardo Garcia, 41, admitted he knowingly possessed 20.9 kilograms of methamphetamine within 18 aloe vera juice bottles contained in his vehicle. At the time of his arrest, he admitted he was supposed to receive $6,000 for transporting the bottles of liquid methamphetamine from Mexico to San Antonio.
LAREDO, Texas – A Laredo man has entered a guilty plea to a conspiracy charge for his role in the importation of methamphetamine, announced Acting U.S. Attorney Abe Martinez.
Ricardo Garcia, 41, admitted he knowingly possessed 20.9 kilograms of methamphetamine within 18 aloe vera juice bottles contained in his vehicle. At the time of his arrest, he admitted he was supposed to receive $6,000 for transporting the bottles of liquid methamphetamine from Mexico to San Antonio.
U.S. Magistrate Judge J. Scott Hacker accepted the plea and a sentencing date will be set in the near future. At that time, Garcia faces a minimum of 10 years and up to life in federal prison and a possible $10 million fine. He will remain in custody pending that hearing.
The Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorney Christopher A. dos Santos is prosecuting the case.
Authorities Announce Formation of Working Group to Fight Hurricane Harvey-Related Illegal ActivityRead the Press Release
Representatives from numerous federal and state law enforcement agencies have formed a working group to investigate and prosecute illegal activity related to Hurricane Harvey.
Acting U.S. Attorney Abe Martinez made the announcement along with Acting U.S. Attorney Corey R. Amundson of the Middle District of Louisiana, who serves as the Acting Executive Director of the National Center for Disaster Fraud (NCDF); Harris County District Attorney (DA) Kim Ogg; Texas Attorney General Ken Paxton; Director Shamoil T. Shipchandler of the Securities and Exchange Commission (SEC), Fort Worth Regional Office; Special Agent in Charge Perrye K. Turner of the FBI; Special Agent in Charge David Green of the Department of Homeland Security – Office of Inspector General (DHS-OIG); Special Agent in Charge Mark Dawson of Immigration and Customs Enforcement’s Homeland Security Investigations (HSI); Special Agent in Charge D. Richard Goss of IRS Criminal Investigations (CI); Special Agent in Charge Douglas W. Thigpen of the U.S. Secret Service (USSS); Regional Director Dama Brown of the Federal Trade Commission (FTC) and Special Agent in Charge Fred Milanowski of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
“This disaster has brought and will continue to bring unprecedented human and financial loss to our communities, and victims of this event have already suffered staggering devastation,” said Martinez. “The last thing that victims of this damage need is to be victimized again. Under the lessons learned from Hurricane Katrina, we bring a comprehensive law enforcement focus to combat any criminal activity arising from the tragedy of Hurricane Harvey and the rebuilding efforts underway.”
While each of these agencies has a history of working together, bringing them together into one focused group is an optimal way to address the varied threats resulting from Hurricane Harvey. The working group will involve all levels of law enforcement and includes representatives from the United States Attorney’s Office for the Southern District of Texas, NCDF, Harris County DA’s Office, Texas Attorney General’s Office, SEC, FBI, DHS-OIG, HSI, IRS-CI, USSS, FTC and the ATF.
Authorities are already receiving calls about scams in our area and have forwarded complaints to the relevant agencies.
“We intend to use all of the resources at our disposal to both help our registrants and to hold those accountable who try to use this disaster to take advantage of other people,” said Chairman Jay Clayton of the SEC. “There is no place for fraud or shady practices in the rebuilding and recovery of the communities in Texas and Louisiana that have been affected by Hurricane Harvey.”
“As we all work to rebuild the Houston/Gulf Coast region and look for ways to help, it's important to perform due diligence before giving contributions to anyone soliciting donations or individuals offering to provide assistance to those affected by Harvey, whether the solicitations are in person, via email or telephone,” said Turner. “The FBI is dedicated to investigating and preventing this type of fraud, especially when it involves preying on individuals during times of great need.”
“As we have witnessed throughout this disaster, the best of the American spirit shines through with neighbors and strangers helping one another. Sadly, at the same time, these situations also bring out those that would try to prey upon those who are willing to give of themselves to help out,” said Dawson. “Rest assured that HSI will, in coordination with our fellow law enforcement partners, bring its investigative resources to bear to stop those that would seek to take advantage of this situation for their personal and illegal gain.”
Natural disasters often bring out the best in human compassion and spirit, they can also lead to unscrupulous individuals and organizations taking advantage of those in need of and/or providing government services. Examples of typical illegal activity under the jurisdiction of each of the agencies in the working group include:
- Impersonation of federal law enforcement officials
- Identity theft
- Fraudulent submission of claims to insurance companies and the federal government
- Fraudulent activity related to solicitations for donations and charitable giving
- Fraudulent activity related to individuals and organizations promising high investment returns from profits from recovery and cleanup efforts
- Price gouging
- Theft, looting, and other violent crime
Consumers also can report scams and other consumer issues to the FTC and get help if they think they may be a victim of identity theft.
Members of the public are encouraged to contact the NCDF to report all types of disaster fraud. The U.S. Department of Justice established the NCDF following Hurricane Katrina when billions of dollars in federal disaster relief poured into the Gulf Coast region. Its mission has expanded to include suspected fraud from any natural or manmade disaster and includes more than 30 federal, state and local law enforcement agencies. The team includes law enforcement agents who review those reports and make referrals to the appropriate investigative agencies. The NCDF provides de-confliction, coordination and expertise in handling disaster fraud matters and is focused on protecting disaster victims and any funds dedicated to disaster victims.
The Disaster Fraud Hotline is 1-866-720-5721 and is staffed by a live operator 24 hours a day, seven days a week. Members of the public can also send an email or fax information to 225-334-4707.
In addition, the Texas Attorney General’s Office is asking Texans to please contact their Consumer Protection Division and file a complaint if they feel they have encountered price gouging or have been scammed or fall victim to a charities fraud. They can call the toll-free hotline at 800-621-0508, send an email or file a complaint on via the web.
The SEC provided this information yesterday and continues to monitor the market impact of Hurricane Harvey and encourage affected entities and investment professionals to contact Commission staff with questions and concerns.
For additional information, you may also visit FEMA’s Hurricane Harvey resource page.
The Department of Justice also announced yesterday Tips on Avoiding Fraudulent Charitable Contribution Schemes.
Authorities Announce Formation of Working Group to Fight Hurricane Harvey-Related Illegal ActivityRead the Press Release
HOUSTON - Representatives from numerous federal and state law enforcement agencies have formed a working group to investigate and prosecute illegal activity related to Hurricane Harvey.
Acting U.S. Attorney Abe Martinez made the announcement along with Acting U.S. Attorney Corey R. Amundson of the Middle District of Louisiana who serves as the Acting Executive Director of the National Center for Disaster Fraud (NCDF), Harris County District Attorney (DA) Kim Ogg, Texas Attorney General Ken Paxton, Director Shamoil T. Shipchandler of the Securities and Exchange Commission (SEC) - Fort Worth Regional Office, Special Agent in Charge Perrye K. Turner of the FBI, Special Agent in Charge David Green of the Department of Homeland Security – Office of Inspector General (DHS-OIG), Special Agent in Charge Mark Dawson of Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Special Agent in Charge D. Richard Goss of IRS – Criminal Investigations (CI), Special Agent in Charge Douglas W. Thigpen of the U.S. Secret Service (USSS), Regional Director Dama Brown of the Federal Trade Commission (FTC) and Special Agent in Charge Fred Milanowski of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
“This disaster has brought and will continue to bring unprecedented human and financial loss to our communities, and victims of this event have already suffered staggering devastation,” said Martinez. “The last thing that victims of this damage need is to be victimized again. Under the lessons learned from Hurricane Katrina, we bring a comprehensive law enforcement focus to combat any criminal activity arising from the tragedy of Hurricane Harvey and the rebuilding efforts underway.”
While each of these agencies has a history of working together, bringing them together into one focused group is an optimal way to address the varied threats resulting from Hurricane Harvey. The working group will involve all levels of law enforcement and includes representatives from the United States Attorney’s Office for the Southern District of Texas, NCDF, Harris County DA’s Office, Texas Attorney General’s Office, SEC, FBI, DHS-OIG, HSI, IRS-CI, USSS, FTC and the ATF.
Authorities are already receiving calls about scams in our area and have forwarded complaints to the relevant agencies.
“We intend to use all of the resources at our disposal to both help our registrants and to hold those accountable who try to use this disaster to take advantage of other people,” said Chairman Jay Clayton of the SEC. “There is no place for fraud or shady practices in the rebuilding and recovery of the communities in Texas and Louisiana that have been affected by Hurricane Harvey.”
"As we all work to rebuild the Houston/Gulf Coast region and look for ways to help, it's important to perform due diligence before giving contributions to anyone soliciting donations or individuals offering to provide assistance to those affected by Harvey, whether the solicitations are in person, via email or telephone,” said Turner. “The FBI is dedicated to investigating and preventing this type of fraud, especially when it involves preying on individuals during times of great need.”
“As we have witnessed throughout this disaster, the best of the American spirit shines through with neighbors and strangers helping one another. Sadly, at the same time, these situations also bring out those that would try to prey upon those who are willing to give of themselves to help out,” said Dawson. “Rest assured that HSI will, in coordination with our fellow law enforcement partners, bring its investigative resources to bear to stop those that would seek to take advantage of this situation for their personal and illegal gain.”
Natural disasters often bring out the best in human compassion and spirit, they can also lead to unscrupulous individuals and organizations taking advantage of those in need of and/or providing government services. Examples of typical illegal activity under the jurisdiction of each of the agencies in the working group include:
· Impersonation of federal law enforcement officials
· Identity theft
· Fraudulent submission of claims to insurance companies and the federal government
· Fraudulent activity related to solicitations for donations and charitable giving
· Fraudulent activity related to individuals and organizations promising high investment returns from profits from recovery and cleanup efforts
· Price gouging
· Theft, looting, and other violent crime
Consumers also can report scams and other consumer issues to the FTC and get help if they think they may be a victim of identity theft.
Members of the public are encouraged to contact the NCDF to report all types of disaster fraud. The U.S. Department of Justice established the NCDF following Hurricane Katrina when billions of dollars in federal disaster relief poured into the Gulf Coast region. Its mission has expanded to include suspected fraud from any natural or manmade disaster and includes more than 30 federal, state and local law enforcement agencies. The team includes law enforcement agents who review those reports and make referrals to the appropriate investigative agencies. The NCDF provides de-confliction, coordination and expertise in handling disaster fraud matters and is focused on protecting disaster victims and any funds dedicated to disaster victims.
The Disaster Fraud Hotline is 1-866-720-5721 and is staffed by a live operator 24 hours a day, seven days a week. Members of the public can also send an email or fax information to 225-334-4707.
In addition, the Texas Attorney General’s Office is asking Texans to please contact their Consumer Protection Division and file a complaint if they feel they have encountered price gouging or have been scammed or fall victim to a charities fraud. They can call the toll-free hotline at 800-621-0508, send an email or file a complaint on via the web.
The SEC provided this information yesterday and continues to monitor the market impact of Hurricane Harvey and encourage affected entities and investment professionals to contact Commission staff with questions and concerns.
For additional information, you may also visit FEMA’s Hurricane Harvey resource page.
The Department of Justice also announced yesterday Tips on Avoiding Fraudulent Charitable Contribution Schemes.
Various personnel will also be available for any additional information, comments or interviews regarding this effort. Members of the media wishing to speak with anyone are asked to send an email with your request and preferred times and the office will respond accordingly.
Texas Residents Indicted for Laundering and Structuring Proceeds from Sale of Second-Hand Prescription DrugsRead the Press Release
A federal grand jury sitting in Houston, Texas returned an indictment, which was unsealed today, charging two Texas residents with conspiring to commit money laundering and structuring currency transactions, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Abe Martinez for the Southern District of Texas. One of the defendants was also charged with tax evasion, filing false tax returns and failing to file tax returns.
Kenneth J. Coleman, 50, and Marcus T. Weathersby, 44, are charged in a nine-count indictment filed in the Southern District of Texas. According to the indictment and information provided to the court, Coleman owned Acacia Pharma Distributors Inc. and Four Corner Suppliers Inc., which allegedly purchased bottles of prescription medications from illegitimate sources and then sold the medications to another wholesale distributor who then sold them to pharmacies as new. Federal regulation requires wholesale distributors of prescription medications to provide to a buyer a pedigree – a written statement identifying each prior sale, purchase or trade of the drugs being sold that includes the business name and information of all parties to the prior transactions, starting with the manufacturer. Coleman and Weathersby are alleged to have created false pedigrees, which were provided to the wholesale distributor to whom Acacia and Four Corners sold the drugs. That distributor allegedly withheld payment until these false pedigrees were received.
The indictment alleges that Coleman and Weathersby deposited proceeds from the fraudulent sale of these second-hand prescription drugs into Acacia’s and Four Corner’s business bank accounts and used the funds to pay the suppliers of the illicit pharmaceuticals. Coleman and Weathersby are also charged with making approximately 240 cash withdrawals, totaling over $2 million in amounts less than $10,000, to evade bank-reporting requirements.
Coleman is also charged with evading Acacia’s and Four Corner’s income tax liabilities, filing false 2012 and 2013 individual income tax returns and failing to file individual and corporate tax returns. Weathersby was arraigned earlier today and detained pending his trial set for Oct. 16 in front of U.S. District Court Judge Lee H. Rosenthal. Coleman made his initial Court appearance earlier today and has been released on bond.
If convicted, Coleman and Weathersby face a statutory maximum sentence of 20 years in prison for the money laundering conspiracy and a maximum sentence of five years for the conspiracy to structure currency transactions. Coleman also faces a five-year statutory maximum sentence for each count of tax evasion, a maximum sentence of three years in prison for each count of filing a false tax return, and up to one year in jail for the failure-to-file charges. Both Coleman and Weathersby face a period of supervised release, restitution, forfeiture and monetary penalties.
An indictment is not a finding of guilt. It merely alleges that crimes have been committed. A defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Martinez thanked agents of IRS Criminal Investigation, the FBI, and the Federal Department of Agriculture, who conducted the investigation, and Trial Attorneys Sean Beaty and Terri-Lei O’Malley of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Houston Bookkeeper Charged in a Scheme to Embezzle from a ClientRead the Press Release
HOUSTON – A 64-year-old Houston woman has been taken into custody following the return of a 16-count indictment alleging wire and mail fraud and filing false tax returns, announced Acting U.S. Attorney Abe Martinez.
A federal grand jury returned the indictment under seal yesterday against Gwendolyn M. Berry, which was unsealed as she was taken into custody today. She made her initial appearance this morning before U.S. Magistrate Judge Mary Milloy and was permitted release upon posting bond.
The indictment alleges Berry took funds in excess of $1.7 million from a family for whom was she provided bookkeeping services between September 2008 and Oct. 1, 2014. Berry allegedly took money from the education accounts of the minor children, as well as other bank accounts belonging to the family. Berry used the money to make payments for the benefit of herself and her family, according to the charges.
Four counts of the indictment charge Berry with filing a false federal tax return for the tax years 2011 through 2014. In each of these tax returns, Berry allegedly omitted reporting some of her income which, if reported, would have changed the amount of federal income tax due and owing. If convicted of any of these charges, she faces up to three years in prison.
In addition, upon conviction of any of the remaining 12 fraud counts, Berry also faces a possible sentence of up to 20 years in federal prison.
IRS - Criminal Investigation and the Secret Service conducted the investigation. Assistant U.S. Attorney Melissa Annis 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.
North Texas Woman Sent to Prison for Trafficking HeroinRead the Press Release
CORPUS CHRISTI, Texas – A 25-year-old woman has been ordered to prison for possession with intent to distribute heroin through the Sarita checkpoint, announced Acting U.S. Attorney Abe Martinez. Ma Dolores Martinez, of Hurst, pleaded guilty Nov. 29, 2016, to possession with intent to distribute 6.28 kilograms of heroin.
Today, U.S. District Judge Hilda G. Tagle ordered Martinez to serve 70 months in federal prison. The sentence will be immediately followed by five years of supervised release.
On Sept. 15, 2016, Martinez drove a vehicle into the primary inspection area of the Border Patrol (BP) checkpoint located near Sarita. During a search of her vehicle, agents discovered four bundles of heroin concealed within a new car battery located inside the trunk. The drugs had a gross weight of 6.28 kilograms.
Martinez has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be designated in the near future.
Border Patrol and the Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorney Amanda L. Gould is prosecuting the case.
Former IT Director Sentenced for Embezzling Hundreds of Thousands from EmployerRead the Press Release
HOUSTON – The former director of Information Technology (IT) Services for a Houston-based real estate services company has been ordered to prison following his conviction related to a conspiracy in which he stole nearly $800,000, announced Acting U.S. Attorney Abe Martinez. Bradley David Freitas, 37, of Tomball, previously pleaded guilty to conspiracy to commit mail and wire fraud.
Today, U.S. District Judge Sim Lake handed Freitas a sentence of 33 months in federal prison to be followed by three years of supervised release. His wife - Loren Elizabeth Freitas, 34, had also been convicted in the case. She pleaded guilty to conspiracy to commit mail fraud and was ordered to serve a term of probation. The couple are both required to pay $773,555 in restitution.
From approximately April 14, 2009 through Jan. 14, 2014, Bradley Freitas embezzled $773,500 from the company, at times with the help of his wife.
Bradley Freitas was hired as the Director of IT services for the real estate company on March 5, 2009. Throughout his employment, he created false explanations on internal company justification documents so that the unauthorized purchases were masked as IT related items. Bradley Freitas would miscode justification documents to mask the unauthorized personal purchases for several years and made these unauthorized purchases with the company credit cards issued to him for IT purchases only. The merchandise was purchased from online retailers, such as Amazon, NewEgg and CDW, and mailed either to his office or home.
Several of the items, such as a dining room table with chairs, a Gucci purse and wallet, home entertainment systems, televisions and more, were purchased for the Freitas’ own personal enrichment. Other items, such as ipads and laptops, were sold on eBay or to their own private customers in New York and elsewhere for them to obtain a profit. At times, Loren Freitas would direct her husband as to what to purchase and then mailed the various items to be sold to their customers via FedEx or UPS.
Previously released on bond, Bradley Freitas 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. Attorneys Suzanne Elmilady is prosecuting the case.
Corpus Christi Man Heads to Prison for Online Solicitation of a MinorRead the Press Release
CORPUS CHRISTI, Texas – A 35-year-old resident of Corpus Christi has admitted he attempted to meet an underage girl for the purpose of sex, announced Acting U.S. Attorney Abe Martinez. David Lee Vann pleaded guilty April 27, 2017.
Today, U.S. District Judge Hilda G. Tagle handed Vann a term of 120 months in federal prison. Vann was further ordered to serve 10 years of supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. He will also be ordered to register as a sex offender.
In June 2016, Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) and the Corpus Christi Police Department - Internet Crimes Against Children Task Force (CCPD-ICAC) conducted a joint investigation targeting individuals involved in online solicitation of minors. Vann was communicating with a person he believed was the mother of a 14-year-old female. In reality, he was talking to an undercover agent. Vann made arrangements to meet and engage in sexual activity with the mother’s minor female child.
Vann was apprehended as he arrived at the designated meeting place, at which time he was in possession of a box of condoms and lubricant. He also admitted to authorities that he had sent messages indicating his intention to engage in sexual acts with the child. Vann was also in possession of a cellular telephone. A forensic examination of the phone resulted in the discovery of 35 images and 20 videos of child pornography.
Vann was arrested on the federal charges in November 2016. He has been and will remain in custody pending his sentencing hearing.
The case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez and Elsa Salinas, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Jury Convicts Undocumented Alien for Illegal Re-entryRead the Press Release
McALLEN, Texas - A 40-year-old Mexican national has been convicted of illegally re-entering the country after removal or deportation, announced Acting U.S. Attorney Abe Martinez. A federal jury sitting in McAllen deliberated for approximately 30 minutes before finding Rogelio Rodriguez guilty.
During the trial, Border Patrol (BP) agents testified that Rodriguez had been apprehended near Donna on April 24, 2016, and admitted to being a Mexican national. Record checks revealed Rodriguez had been previously removed from the United States on three separate occasions and that he had no lawful status to be in the United States.
U.S. District Judge Ricardo H. Hinojosa presided over the trial and set sentencing for Oct. 27, 2017, at which time Rodriguez faces up to 20 years in federal prison.
He will remain in custody pending that hearing.
U.S. Border Patrol conducted the investigation. Assistant U.S. Attorney Kristen Rees is prosecuting the case.
Alien Smuggling Ring DismantledRead the Press Release
BROWNSVILLE, Texas – With the sentencing of the final defendant today, 11 members of a smuggling group that operated throughout the Rio Grande Valley have all been ordered to federal prison, announced Acting U.S. Attorney Abe Martinez.
Manuela Cedillo-Hernandez, 59, of La Feria, was the leader and organizer of the ring. She and her husband - Javier Aranda Velez, 51 - harbored aliens who had entered the United States unlawfully and conspired to transport them farther north into the nation’s interior. Cedillo-Hernandez employed associates in the alien smuggling scheme including her own children.
The investigation into the Cedillo-Hernandez alien smuggling organization began in March 2016. By July 2016, the investigation had revealed an extensive operation including five properties across south Texas involving the smuggling of at least 39 aliens within a few short months.
Cedillo-Hernandez was previously sentenced to 37 months in federal prison. Her home was also seized by federal authorities. The others convicted in the scheme included Francisca Torres, 54, Landsie Rubi Leija, 28, Christopher Ray Vega, 31, and William Adam Leija, 26,all of La Feria; Raquel Flores-Cedillo, 37, and Rogelio Gonzalez, 41, both of Brownsville; Guadalupe Iracheta Obregon, 41,and Bobby Joe Canales, 38, both of Alton; and Jorge Vidales, 39, of Harlingen. The final defendant - Flores Cedillo - was sentenced today to 16 months in prison. The remaining defendants were previously sentenced to a variety of terms up to 37 months imprisonment.
Immigration and Custom's Enforcement's Homeland Security Investigations conducted the four-month investigation with assistance from Enforcement Removal Operations, U.S. Marshals Service, Border Patrol, the State Department’s Diplomatic Security Service, Bureau of Alcohol, Tobacco, Firearms and Explosives, Cameron County District Attorney’s Office, Cameron County Sheriff’s Office and police departments in Brownsville, Harlingen and Mission. Assistant U.S. Attorney Jason Corley and Assistant U.S. Attorney Vince Carroll prosecuted the case.
Second E-Commerce Company and Its Top Executive Agree to Plead Guilty to Price-Fixing Conspiracy in Customized Promotional Products IndustryRead the Press Release
HOUSTON - E-commerce company Custom Wristbands Inc. (aka Kulayful Silicone Bracelets, Kulayful.com, Speedywristbands.com, Promotionalbands.com, Wristbandcreation.com and 1inchbracelets.com) and its top executive Christopher Angeles have agreed to plead guilty for conspiring to fix prices for customized promotional products sold online to customers in the United States.
Acting U.S. Attorney Abe Martinez, Acting Assistant Attorney General Andrew Finch of the Department of Justice’s Antitrust Division and Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Division made the announcement.
According to the felony charges filed today in the U.S. District Court for the Southern District of Texas in Houston, the conspirators attended meetings and communicated in person and online. The investigation has revealed that the conspirators used text messaging and other online messaging platforms to reach and implement their illegal agreements. Specifically, the defendants and their co-conspirators agreed, from as early as June 2014 until June 2016, to fix the prices of customized promotional products sold online, including wristbands. In addition to agreeing to plead guilty, Custom Wristbands has agreed to pay a $409,342 criminal fine.
“Price-fixing schemes like these that are designed to give individuals and businesses an illegal advantage will not be tolerated,” said Martinez. “We will continue to prosecute those who conspire to cause financial harm to consumers and businesses in the Internet marketplace.”
“Today’s charges are yet another step in the Division’s commitment to prosecuting collusion that affects the online marketplace,” said Finch. “The Division, along with our law enforcement colleagues, will continue to hold companies and executives accountable for their unlawful collusive practices.”
“The FBI works to ensure the integrity of our markets and eradicate price fixing and other unlawful business practices,” said Turner. “In open, competitive markets, customers get better service and lower prices.”
Angeles is charged with price fixing in violation of the Sherman Act, which carries a maximum sentence of 10 years in federal prison and a maximum fine of $1 million for individuals. The maximum fine for an individual may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.Both defendants have agreed to cooperate with the Antitrust Division’s ongoing investigation. The plea agreements are subject to court approval.
This prosecution arose from an ongoing federal antitrust investigation into price fixing in the online promotional products industry, which is being conducted by the Antitrust Division’s Washington Criminal I Section with the assistance of the FBI’s Houston Field Office. Anyone with information on price fixing or other anticompetitive conduct in the customized promotional products industry should contact the Antitrust Division’s Citizen Complaint Center at 888-647-3258 or visit www.justice.gov/atr/contact/newcase.html.