Southern District of Texas
Press releases recorded for this federal judicial district.
Second E-Commerce Company and Its Top Executive Agree to Plead Guilty to Price-Fixing Conspiracy in Customized Promotional Products IndustryRead the Press Release
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 Assistant Attorney General Andrew Finch of the Department of Justice’s Antitrust Division, Acting U.S. Attorney Abe Martinez of the Southern District of Texas 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.
“Today’s charges are yet another step in the Division’s commitment to prosecuting collusion that affects the online marketplace,” said Acting Assistant Attorney General Andrew Finch of the Department of Justice’s Antitrust Division. “The Division, along with our law enforcement colleagues, will continue to hold companies and executives accountable for their unlawful collusive practices.”
“Price-fixing schemes like these that are designed to give individuals and businesses an illegal advantage will not be tolerated,” said Acting U.S. Attorney Martinez. “We will continue to prosecute those who conspire to cause financial harm to consumers and businesses in the Internet marketplace.”
“The FBI works to ensure the integrity of our markets and eradicate price fixing and other unlawful business practices,” said Special Agent in Charge Perrye K. 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.
Mexican Man Gets 10 Years in Cocaine ConspiracyRead the Press Release
CORPUS CHRISTI, Texas – A 31-year-old Mexican National who was residing in Illinois has been ordered to federal prison for assisting a South Texas drug trafficking organization, announced Acting U.S. Attorney Abe Martinez. Juan Carlos Gamez-Herrera pleaded guilty April 25, 2017.
Today, U.S. District Judge Hilda Tagle ordered him to prison for 120 months. Not a U.S. citizen, he is expected to face deportation proceedings following his sentence. At the hearing, Gamez-Herrera was found to be responsible for conspiring to possess with intent to distribute 41.2 kilograms of cocaine.
The investigation into Gamez-Herrera began following the seizure of $586,390 in U.S. currency near Corpus Christi on Aug. 11, 2016. Between Aug. 1 and Nov. 29, 2016, Gamez-Herrera assisted a South Texas drug trafficking organization. He would receive cocaine from South Texas and assist with the delivery and distribution of this cocaine to other persons in the Rockford, Illinois, area. Gamez-Herrera also worked with other known and unknown co-conspirators to transfer the proceeds from the sale of the organization’s cocaine in the Rockford area to South Texas and eventually into Mexico.
The Drug Enforcement Administration and IRS-Criminal Investigation conducted the investigation known as “Operation Black Taxi.” Assistant U.S. Attorney Kenneth Cusick is prosecuting the case.
Houston Man Charged with Attempting to Damage Hermann Park StatueRead the Press Release
HOUSTON – A 25-year-old man has been taken into custody for attempting to maliciously damage or destroy property receiving federal financial assistance, announced Acting U.S. Attorney Abe Martinez.
A criminal complaint was filed in Houston federal court today charging Andrew Schneck, of Houston. He made his initial appearance before U.S. Magistrate Judge Mary Milloy this morning, at which time he was temporarily ordered into custody upon the government’s request pending a detention hearing set for Thursday, Aug. 24 at 2:00 p.m.
According to the complaint, on the evening of Aug. 19, 2017, a Houston park ranger observed Schneck kneeling among the bushes in front of the General Dowling Monument located in Hermann Park in Houston. Schneck was allegedly holding two small boxes with various items inside to include what appeared to be duct tape and wires. After placing the boxes on the ground per the ranger’s request, Schneck then allegedly took a drink from plastic bottle but immediately spit it on the ground. The ranger then noticed a timer and wires in the box and notified the Houston Police Department (HPD), according to the complaint.
The clear liquid was field tested as was a white powdery substance found in a small, black aluminum tube which revealed they were most likely nitroglycerin and Hexamethylene triperoxide diamine (HMTD), respectively, according to the charges. HMTD is a high explosive organic compound used as an initiating, or primary explosive. Nitroglycerin has been used as an active ingredient in the manufacture of explosives. ln its pure form, nitroglycerin is a contact explosive, with physical shock causing it to explode, which degrades over time to even more unstable forms. Nitroglycerin is highly dangerous to transport or use. ln its undiluted form, it is one of the world's most powerful explosives.
Authorities believe the items in Schneck’s possession on Aug. 19 were capable to produce a viable explosive device, according to the charges.
The complaint further alleges that Schneck conducts “chemistry experiments” at his Houston residence.
The City of Houston receives federal financial assistance for maintenance of Hermann Park where the General Dowling Monument is located.
If convicted, Schneck faces a minimum of five and up to 40 years in federal prison and a possible $250,000 maximum fine.
The FBI and HPD are conducting the investigation. Assistant U.S. Attorneys S. Mark McIntyre and Ted Imperato are prosecuting the case.
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Houston Home Health Agency Owner Sentenced to 480 Months in Prison for Conspiring to Defraud Medicare and Medicaid of More Than $17 MillionRead the Press Release
WASHINTON – The owner and operator of five Houston-area home health agencies was sentenced on Thursday to 480 months in prison for conspiring to defraud Medicare and the State of Texas’ Medicaid-funded Home and Community-Based Service (HCBS) and Primary Home Care (PHC) Programs of more than $17 million and launder the money that he stole from Medicare and Medicaid. The HCBS and PHC Programs provided qualified individuals with in-home attendant and community-based services that are known commonly as “provider attendant services” (PAS). This case marks the largest PAS fraud case charged in Texas history.
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, Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office, Special Agent in Charge C.J. Porter of the Department of Health and Human Services Office of the Inspector General’s (HHS-OIG) Dallas Regional Office, Special Agent in Charge D. Richard Goss of IRS Criminal Investigation’s (CI) Houston Field Office and the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU) made the announcement.
Godwin Oriakhi, 61, of Houston, was sentenced by U.S. District Judge Sim Lake of the Southern District of Texas. In March 2017, Oriakhi pleaded guilty to two counts of conspiracy to commit health care fraud and one count of conspiracy to launder monetary instruments.
According to admissions made as part of Oriakhi’s plea, he, his co-defendant daughter and other members of his family owned and operated Aabraham Blessings LLC, Baptist Home Care Providers Inc., Community Wide Home Health Inc., Four Seasons Home Healthcare Inc. and Kis Med Concepts Inc., all of which were home health agencies in the Houston area. Oriakhi admitted that he, along with his daughter and other co-conspirators, obtained patients for his home health agencies by paying illegal kickback payments to patient recruiters and his office employees for hundreds of patient referrals. In his plea, Oriakhi also admitted that he, along with his daughter and co-conspirators, paid Medicare and Medicaid patients by cash, check, Western Union and Moneygram for receiving services from his family’s home health agencies in exchange for the ability to use the patients’ Medicare and Medicaid numbers to bill the programs for home healthcare and PAS services. Oriakhi admitted that he, his daughter and their co-conspirators also directly paid some of these patients for recruiting and referring other Medicare and Medicaid patients to his agencies. Additionally, Oriakhi admitted that he, his daughter and other co-conspirators paid physicians illegal kickbacks payments, which Oriakhi and his co-conspirators called “copayments,” for referring and certifying Medicare and Medicaid patients for home health and PAS services.
Oriakhi further admitted that each time he submitted a claim predicated on an illegal kickback payment he knew he was submitting a fraudulent claim to Medicare or Medicaid based on his false representations that the claim and the underlying transaction complied with the federal Anti-Kickback Statute and other state and federal laws. Oriakhi further admitted that he knew that Medicare and Medicaid would not otherwise pay for the fraudulent claims, according to his plea. In addition to the home health care and PAS services fraud scheme, Oriakhi admitted that he and his co-conspirators used the money fraudulently obtained from Medicare and Medicaid to make illegal kickback payments to patient recruiters, employees, physicians and patients to promote the Medicare home health and Medicaid PAS fraud conspiracies, and ensure their successful continuation.
In total, Oriakhi that he and his co-conspirators submitted approximately $17,819,456 in fraudulent home healthcare and PAS claims to Medicare and Medicaid and received approximately $16,198,600 on those claims.
To date, three others have pleaded guilty based on their roles in the fraudulent scheme at Oriakhi’s home healthcare agencies. Oriakhi’s daughter, Idia Oriakhi, and Charles Esechie, a registered nurse who was Baptist’s primary admissions nurse, each pleaded guilty to one count of conspiring with Oriakhi and others to commit health care fraud. Jermaine Doleman, a patient recruiter, pleaded guilty to conspiring with Oriakhi and others to commit health care fraud and launder money. Doleman was also charged in two other healthcare fraud cases. Esechie was also sentenced on August 17, to 60 months in prison. Idia Oriakhi and Jermaine Doleman are awaiting sentencing.
The case was investigated by the IRS-CI, FBI, HHS-OIG and MFCU under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Texas. The case is being prosecuted by Senior Trial Attorney Jonathan T. Baum and Trial Attorneys Aleza S. Remis and William S.W. Chang of the Fraud Section of the Justice Department’s Criminal Division.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. The Medicare Fraud Strike Force operates in nine locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,500 defendants who collectively have falsely billed the Medicare program for over $12.5 billion.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
Two Illegal Aliens Head to Prison for Trafficking MethRead the Press Release
McALLEN, Texas – Two illegal aliens who resided in Texas have been ordered to federal prison following their convictions of possession with intent to distribute methamphetamine, announced Acting U.S. Attorney Abe Martinez. Mexican national Johnathan Ricardo Alvarez, 24, and El Salvadorian national Melvin Noel Vasquez, 33, who resided in Mission and Houston, respectively, pleaded guilty May 31, 2017.
Today, U.S. District Judge Micaela Alvarez ordered Alvarez to serve a 200-month sentence, while Vasquez received a 147-month term of imprisonment. At the hearing, additional testimony was presented establishing 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. In handing down the sentence, Judge Alvarez noted the defendants had a choice not to involve themselves in drug trafficking but chose to anyway without consideration of the harm to the community. Not U.S. citizens, both are expected to face deportation proceedings following release from prison.
Co-defendant Oscar Diaz-Pineda, 27, a Mexican national who resided in Houston, also pleaded guilty May 31, 2017, and is set for sentencing Sept. 28, 2017.
At the time of his plea, 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 Alvarez. Agents arrested Vasquez and Diaz-Pineda that same day and seized the narcotics. Alvarez was subsequently arrested on April 16, 2017, in South Texas.
All three have been and will remain in custody.
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.
Jury Convicts Honduran Man of Assaulting Federal OfficerRead the Press Release
BROWNSVILLE, Texas – A 35-year-old illegal alien from Honduras has been convicted of assaulting a U.S. Border Patrol (BP) agent, announced Acting U.S. Attorney Abe Martinez. A federal jury returned a guilty verdict today against Hernan Cortez-Mazariegos following a one-day trial and approximately two hours of deliberations.
On Nov. 15, 2016, BP agents responded to illegal alien traffic south of the border fence near Azucena street in Brownsville. A BP agent attempted to apprehend Cortez-Mazariegos, but he fled. The agent followed and attempted to arrest him, at which time Cortez-Mazariegos struck him on the side of his face, sustaining minor injury. Cortez-Mazariegos was eventually subdued and apprehended with the assistance of another BP agent.
U.S. District Judge Andrew S. Hanen presided over the trial and has set sentencing for Nov. 21, 2017, at which time Cortez-Mazariegos faces up to eight years in prison and a possible $250,000 fine. He will remain in custody pending that hearing.
The FBI and U.S. Customs and Border Protection conducted the investigation. Assistant U.S. Attorneys David Coronado and Jody Young are prosecuting the case.
Former Credit Union Employee Convicted of TheftRead the Press Release
GALVESTON, Texas – A former employee of Electrical Workers 527 Federal Credit Union in Texas City has entered a guilty plea to bank fraud, announced Acting U.S. Attorney Abe Martinez.
As part of her plea today, Susan Margaret Garza, 60, of Galveston, admitted she issued a credit union check on Sept. 9, 2001, which was debited from the account of a credit union member without that person’s consent. Garza made the check payable to her landlord’s daughter.
Garza was employed at the Electrical Workers 527 Federal Credit Union in Texas City from February 1996 through on or about April 24, 2013. During that time, Garza devised and executed a scheme to defraud the credit union by making unauthorized withdrawals from credit union members’ accounts and also making unauthorized loans in the names of credit union members.
U.S. District Judge George C. Hanks accepted the plea today and has set sentencing for Oct. 25, 2017. At that time, she faces up to 30 years in federal prison and a possible $1 million maximum fine.
She was permitted to remain on bond pending that hearing.
The FBI conducted the investigation. Assistant U.S. Attorney John Braddock is prosecuting the case.
Texas Man Handed Significant Sentence for Trafficking MethRead the Press Release
BROWNSVILLE, Texas – A 31-year-old Houston man has been ordered to federal prison for possession with intent to distribute more than 15 kilograms of methamphetamine, announced Acting U.S. Attorney Abe Martinez. Clifton Teran pleaded guilty Oct. 11, 2016.
Today, U.S. District Judge Andrew S. Hanen ordered Teran to serve 300 months in federal prison. He also received a 12-month-term for committing the offense while on supervised release in a previous federal case which will be served conurrently. The 25-year-term of imprisonment will be followed by another five years of supervised release. Teran’s sentence included upward adjustment or increases in his calculated sentencing guideline range because he was found to be a leader within the conspiracy and also because the methamphetamine was imported from Mexico into the United States.
Teran, Javier Jose Garza and Ilsse Lizeth Pena were part of a drug trafficking organization that imported methamphetamine and cocaine from Mexico through the Brownsville ports of entry. The narcotics were concealed within vehicle batteries or in sealed candy bags. Based out of Matamoros, Mexico, the drug trafficking organization would then have the narcotics transported to Houston for distribution to others.
On Dec. 14, 2015, Garza drove a vehicle to the Gateway International Bridge in Brownsville. Upon inspection, authorities discovered 15.66 kilograms of methamphetamine concealed within the vehicle. Teran and Pena made entry into the United States in a separate vehicle approximately three minutes after Garza attempted entry with the narcotics. They were apprehended as they attempted to return to Houston the following day at the Sarita Border Patrol checkpoint.
Pena, 25, of Houston, and Garza, 36, of Dayton, also pleaded guilty and were sentenced to 66 and 120 months, respectively.
All three have been and will remain in custody.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Angel Castro is prosecuting the case.
McAllen Man Ordered to Prison for Receiving Child Pornography VideosRead the Press Release
McALLEN, Texas – A 26-year old resident of McAllen has been sentenced to federal prison following his conviction of one count of receipt of child pornography, announced Acting U.S. Attorney Abe Martinez. Daniel Ramirez-Tobias pleaded guilty Dec. 2, 2016.
Today, U.S. District Judge Randy Crane, who accepted the guilty plea, handed Ramirez-Tobias a 72-month sentence. Following completion of his sentence, he will be on supervised release for the rest of his life, 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.
Ramirez-Tobias came to the attention of law enforcement following an investigation which began on Aug. 1, 2016, into persons using the Internet to traffic in child pornography. Authorities were able to locate and identify a computer as offering to participate in the receipt of child pornography videos through the peer-to-peer network on the Internet. Through the investigation, it was determined that the computer was located at a residence in McAllen.
On Oct. 6, 2016, authorities executed a federal search warrant at that residence, during which time they seized a desktop computer. A forensic examination on the computer revealed video files of child pornography involving children who were clearly young engaged in sexually explicit conduct. These videos include children under the age of 12 involved in sadistic conduct such as bondage, bestiality and other depictions of violence. Some of the videos are of known victims as identified through the National Center for Missing and Exploited Children.
Ramirez-Tobias admitted he downloaded and viewed child pornography from the Internet, thereby receiving the child pornography found on his computer. He further admitted to downloading and subsequently deleting approximately 100 videos of child pornography.
Previously released on bond, Ramirez-Tobias was permitted to remain on bond and voluntarily surrender to the U.S. Marshals Service on Aug. 25, 2017.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation.
This case, prosecuted by Assistant U.S. Attorney Alex Benavides, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Police Officer Charged with Drug TraffickingRead the Press Release
McALLEN, Texas – A 43-year-old sergeant with the Progresso Police Department has been taken into custody on charges of aiding and abetting the attempt to possess with intent to distribute more than five kilograms of cocaine, announced Acting U.S. Attorney Abe Martinez.
Authorities arrested Giovani Hernandez upon the filing of a sealed criminal complaint on Saturday, Aug. 12, 2017. He made his initial appearance before U.S. Magistrate Judge Dorina Ramos this morning and is set for a probable cause and detention hearing on Aug. 18, 2017.
Hernandez, of Weslaco, is a sergeant with the Progreso Police Department, according to the charges. From March through July 2017, a confidential source allegedly met with Hernandez seeking assistance for a drug trafficking organization. The criminal complaint alleges the meetings culminated in Hernandez agreeing to provide protection for a vehicle he believed contained a controlled substance through the Progreso area. In return for his assistance, Hernandez allegedly received approximately $5,000.
Immigration and Customs Enforcement’s Homeland Security Investigations, Drug Enforcement Administration and IRS - Criminal Investigations conducted the Organized Crime Drug Enforcement Task Force Investigation which was dubbed Operation Blue Shame. Assistant U.S. Attorneys Anibal J. Alaniz and Kristen Rees are prosecuting the case.
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless and until convicted through due process of law.
Importer of Crystal Methamphetamine Ordered to PrisonRead the Press Release
LAREDO, Texas – A 45-year-old man has been ordered to federal prison following his conviction for conspiracy to import crystal methamphetamine, announced Acting U.S. Attorney Abe Martinez. Mexican National Juan Manuel Lozano-Alvarez pleaded guilty May 2, 2017.
Today, U.S. District Judge Marina Garcia Marmolejo handed Lozano-Alvarez a total sentence of 70 months in federal prison. Not a U.S. citizen, he is expected to face deportation proceedings following the sentence.
On March 1, 2017, Lozano-Alvarez was driving a tractor-trailer and applied for entry into the U.S. from Mexico at the Colombia Solidarity Bridge in Laredo. A subsequent examination of the vehicle revealed a set of nested wooden boxes in the tractor. The boxes contained 13.36 kilograms of crystal methamphetamine. Lozano-Alvarez was also carrying the equivalent of approximately $1,000 in cash.
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. Attorney Giselle S. Guerra prosecuted the case.
Owner of Home Health Agency Sentenced to 75 Years in Prison for Involvement in $13 Million Medicare Fraud ConspiracyRead the Press Release
The owner and director of nursing of a Houston home health agency was sentenced today to 75 years in prison for her role in a $13 million Medicare fraud scheme.
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, Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office, Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services-Office of Inspector General’s (HHS-OIG) Dallas Region and Special Agent in Charge D. Richard Goss of the Houston Field Office of IRS-Criminal Investigation Division (IRS-CI) made the announcement.
Marie Neba, 53, of Sugarland, Texas, was sentenced by U.S. District Judge Melinda Harmon of the Southern District of Texas. In November 2016, Neba was convicted after a two-week jury trial of one count of conspiracy to commit health care fraud, three counts of health care fraud, one count of conspiracy to pay and receive health care kickbacks, one count of payment and receipt of health care kickbacks, one count of conspiracy to launder monetary instruments and one count of making health care false statements.
According to the evidence presented at trial, from February 2006 through June 2015, Neba and others conspired to defraud Medicare by submitting over $10 million in false and fraudulent claims for home health services to Medicare through Fiango Home Healthcare Inc., owned by Neba and her husband, Ebong Tilong, 53, also of Sugarland, Texas. The trial evidence showed that using the money that Medicare paid for such fraudulent claims, Neba paid illegal kickbacks to patient recruiters for referring Medicare beneficiaries to Fiango for home health services. Neba also paid illegal kickbacks to Medicare beneficiaries for allowing Fiango to bill Medicare using beneficiaries’ Medicare information for home health services that were not medically necessary or not provided, the evidence showed. Neba falsified medical records to make it appear as though the Medicare beneficiaries qualified for and received home health services. Neba also attempted to suborn perjury from a co-defendant in the federal courthouse, the evidence showed.
According to the evidence presented at trial, from February 2006 to June 2015, Neba received more than $13 million from Medicare for home health services that were not medically necessary or not provided to Medicare beneficiaries.
To date, four others have pleaded guilty based on their roles in the fraudulent scheme at Fiango. Nirmal Mazumdar, M.D., the former medical director of Fiango, pleaded guilty to a scheme to commit health care fraud for his role at Fiango. Daisy Carter and Connie Ray Island, two patient recruiters for Fiango, pleaded guilty to conspiracy to commit health care fraud for their roles at Fiango. On August 11, Island was sentenced to 33 months in prison. Mazumdar and Carter are awaiting sentencing. After the first week of trial, Tilong pleaded guilty to one count of conspiracy to commit healthcare fraud, three counts of healthcare fraud, one count of conspiracy to pay and receive healthcare kickbacks, three counts of payment and receipt of healthcare kickbacks, and one count of conspiracy to launder monetary instruments. Tilong is scheduled to be sentenced on October 13.
The case was investigated by the IRS-CI, FBI and HHS-OIG under the supervision of the Fraud Section of the Justice Department’s Criminal Division and the U.S. Attorney’s Office for the Southern District of Texas. The case is being prosecuted by Trial Attorney William S.W. Chang and Senior Trial Attorney Jonathan T. Baum of the Fraud Section.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. The Medicare Fraud Strike Force operates in nine locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,500 defendants who collectively have falsely billed the Medicare program for over $12.5 billion.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
Local Tortilla Company and Four Leaders Convicted and Sentenced on Charges Relating to the Employment of Illegal AliensRead the Press Release
HOUSTON – La Espiga De Oro (Espiga) forfeited $1 million as a result of a felony conviction of conspiracy to induce and encourage unlawful immigration through a pattern and practice of hiring and employing illegal aliens at the tortilla factory, announced Acting U.S. Attorney Abe Martinez and Special Agent in Charge Mark Dawson of Immigration and Customs Enforcement’s Homeland Security Investigations (HSI). Owners Alfredo Sosa Lira, 72, his wife Lydia Botello-Lira, 68, their daughter Lydia Lira, 25, and night manager Roberto Guerra, 45, all of Houston, pleaded guilty to misdemeanor violations associated with their continued employment of undocumented aliens between October 2011 and August 2015.
“Employers who knowingly hire immigrants with fraudulent or suspect documents face serious consequences under the law,” said Martinez. “This company violated the law by allowing more than half of its employees to work as undocumented immigrants. The $1 million forfeiture will help pay for the investigation and assist immigration authorities in their continued pursuit of employers who engage in similar conduct. Enforcement of our immigration laws is serious business and employers must only hire those with legitimate documentation to demonstrate they are legally in the United States.”
Espiga has been in operation since 1977 and is located on the 1200 block of 15th Street in the Heights in Houston. The company manufactures tortillas for distribution to restaurants and businesses throughout Texas, Louisiana and Colorado.
A series of complaints about the company’s hiring practices between 2008 and 2010 led to the HSI investigation. An undercover operation later led to evidence that the company knowingly hired aliens not authorized to work in the United States. In some instances, the company knew that aliens used fraudulent documents to secure employment. The illegal immigrants were from Mexico, Guatemala and El Salvador.
“Those who think that they can build their businesses by taking advantage of vulnerable individuals will ultimately see their day in court,” said Dawson. “Today’s plea shows that companies will be held accountable for violating our nation’s laws.”
HSI executed a search warrant at the company on Aug. 4, 2015, which led to the discovery of 10 illegal aliens working there as well as evidence demonstrating that 55% of their employees were not authorized by law to work at the factory. One long-term employee that the company knew to be employed illegally was injured on the job and received a settlement under her true name after using an alias for more than six years. The company owners and managers continued to employ this alien knowing that she was illegally in the United States.
Following the search warrant, the company was charged by criminal complaint and began cooperating with HSI and the U.S. Attorney’s Office to revise their hiring practices and implement new procedures to prevent future violations of federal law.
The company paid $1 million, representing an amount that at least equals the value of property used to facilitate the crime, the value of wages paid to the unauthorized work force and the value of products manufactured and services provided by the illegal workforce during the conspiracy. This money will go directly to immigration authorities to assist them with their future enforcement efforts.
U.S. District Judge Gray Miller accepted the company’s plea as well as that of the owners/managers. Alfredo Lira, Botello-Lira, Lydia Lira and Guerra were sentenced to time served – the 18 months they were forced to serve on court-imposed supervised release during the course of this prosecution. The company itself will be on probation for a term of 12 months.
The Occupational Safety and Health Administration (OSHA) also had actions against Espiga for labor-related violations. OSHA settled with Espiga on Aug. 23, 2016, with Espiga paying $85,360 and Espiga must correct the hazards that OSHA had identified. There are also provisions in that agreement requiring Espiga to protect the employees while the hazards are being addressed.
HSI conducted the investigation. Assistant U.S. Attorneys Julie Searle and Edward Gallagher prosecuted this case.
High Ranking Los Zetas Plaza Boss Heads to Federal Prison for Multi-Year Drug ConspiracyRead the Press Release
HOUSTON – Jose Manuel Saldivar-Farias aka “Z-31” or “El Borrado” has been ordered to federal prison for his role in a seven-year conspiracy that resulted in an estimated 40,000 kilograms of marijuana imported into the United States from Mexico, announced Acting U.S. Attorney Abe Martinez. Saldivar-Farias, 29, of Nueva Ciudad Guerrero, Tamaulipas, Mexico, entered a guilty plea July 26, 2017, and admitted he and his co-conspirators coordinated the importation multi-kilogram loads of marijuana on a monthly basis.
Today, U.S. District Judge Melinda Harmon formally accepted the plea and imposed a 30-year term of imprisonment.
Saldivar-Farias was initially arrested on immigration charges related to his illegal presence in the U.S. in March 2015.
In early 2015, Pedro Perez-Ocampo, 39, of Estado de Guerrero, Mexico, and Osiel Hernandez-Martinez, 29, of Nueva Ciudad Guerrero, Tamaulipas, Mexico, had obtained permission from Saldivar-Farias and paid him the “piso” or “tax” to transport approximately one ton of marijuana from Nueva Ciudad Guerrero, Tamaulipas, Mexico, into the United States across Falcon Lake by boat. On the night of March 12, 2015, they were at the Lake’s shore preparing to load the marijuana onto boats when they encountered Saldivar-Farias. He was fleeing from the Mexican military as they were attempting to capture him. Saldivar-Farias jumped into Hernandez-Martinez’s boat and ordered him to take him across to the United States.
While crossing Falcon Lake, Saldivar-Farias instructed everyone in the boat to lie about his identity in the event they were apprehended, to deny association with the Zetas and to tell U.S. authorities that he was “Carlos Cruz-Jimenez.” Shortly after crossing the lake, law enforcement apprehended the men. At that time, Saldivar-Farias identified himself as “Carlos Cruz-Jimenez” and claimed he traveled to the United States to find employment.
Today, Saldivar-Farias admitted his true identity was Jose Manuel Saldivar-Farias and that he was a Zeta plaza boss and then regional commander of the northern region of Mexico to include the states of Coahuilla, Taumalipas and Nuevo Leon, Mexico, as well as Zapata, Texas. As such, he was in charge of all narcotics moving through the area. Throughout the conspiracy, Saldivar-Farias and other Zeta members and associates, secured, maintained and regulated the transportation routes used to import marijuana from Mexico to the United States across Falcon Lake. Saldivar-Farias charged and collected a “piso” or “tax” for permission to store and transport marijuana and other controlled substances through the transportation routes and areas he controlled. Individuals who did not pay the “piso” or “tax” faced a potential consequence and potentially would be threatened, beaten, kidnapped, tortured or murdered.
To date, 18 defendants have been indicted for their roles in the conspiracy. Fourteen have been convicted, while the remaining four are fugitives.
The FBI and Border Patrol conducted the investigation with the assistance of Drug Enforcement Administration and Texas Department of Public Safety. Assistant U.S. Attorneys Casey N. MacDonald and Anibal Alaniz are prosecuting the case.
12 Charged in Two Galveston Domestic Sex Trafficking CasesRead the Press Release
GALVESTON, Texas - Nine men and three women are in custody on allegations of conspiracy and sex trafficking of children among other charges in two separate, but related indictments, announced Acting U.S. Attorney Abe Martinez.
Those taken into custody in a coordinated effort between federal and local law enforcement include Joseph Church, 31, and Angela Marks, 23, both of Sweeney; Jamaal Crane, 25, of Angleton; Norris Moon, 23, and Christopher Walton, 23, both of Brazoria; Ronnie Beasley, 19, of Rosharon; and William Franklin, 18, of Wharton. They are expected to make their initial appearances before U.S. Magistrate Judge Stephen Wm. Smith at 2:00 p.m. today along with Jamier Coleman, 20, and Lurkesha Baugh, 35, both of Wharton, who were previously in state custody on unrelated charges. Alisa Kimber, 24, of Freeport, was already in federal custody on earlier similar charges. Authorities arrested Stephanie Walker, 35, of Houston, in Beaumont yesterday, while the final defendant - Eric Page, 19 - was taken into custody on unrelated charges on Wednesday in Sherman. They are expected to appear in Galveston in the near future.
With the exception of Walker and Kimbler who were indicted for using an interstate facility to promote sex trafficking of children, all are charged with conspiracy to traffic children for the purpose of commercialized sex, sex trafficking of children and sex trafficking by force, fraud and coercion. Church and Marks are also charged with production of child pornography. Moon and Walton have an additional charge of carrying a firearm while engaging in the crime of sex trafficking of minors.
The defendants allegedly employed sexually-oriented websites to advertise their illicit business employing four minors as young as 16 for commercial sex. The charges allege the young girls were induced into posing for pictures used in online advertisements for sex and engaged in commercial sex acts for money. The defendants collected all of the money the girls earned, according to the indictment. In one particular online advertisement, the defendants allegedly photographed an adult prostitute performing oral sex on a 16-year-old runaway victim whom the defendants also prostituted.
Those charged in the sex trafficking conspiracy face up to life in prison, if convicted. Moon and Walton face the same penalty for the firearms offense. Walker and Kimbler face a penalty of up to five years in prison for using an interstate facility to promote sex trafficking of children, while Church and Marks also face an additional possible 30 years in prison for the child pornography charge, upon conviction. All charges carry up to a $250,000 fine.
The FBI and Texas Department of Public Safety conducted the investigation with assistance of sheriff’s offices in Brazoria and Galveston Counties and police departments in Galveston, Sherman, Wharton, La Marque and the University of Texas Medical Branch
Assistant U.S. Attorneys Sherri Zack and Sebastian Edwards are prosecuting this case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Registered Nurse Who Owned Two Houston Home Health Companies Convicted in $20 Million Medicare Fraud SchemeRead the Press Release
A federal jury today convicted a registered nurse who was the owner of two home health companies in Houston for her role in a $20 million Medicare fraud scheme involving fraudulent claims for home health services.
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, Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office and Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services-Office of Inspector General’s (HHS-OIG) Dallas Region made the announcement.
After a four-day trial, Evelyn Mokwuah, 52, of Pearland, Texas, was convicted of one count of conspiracy to commit health care fraud and four counts of health care fraud for her conduct at Beechwood Home Health (Beechwood) and Criseven Health Management Corporation (Criseven). Sentencing has been scheduled for October 6, before U.S. District Judge Gray H. Miller of the Southern District of Texas, who presided over the trial.
According to evidence presented at trial, from 2008 to 2016, Mokwuah and others engaged in a scheme to defraud Medicare of approximately $20 million in fraudulent claims for home health services at Beechwood and Criseven that were not provided or not medically necessary. According to the trial evidence, Mokwuah billed for patients who were not homebound or did not qualify for home health services; Mokwuah and others falsified patient records to show patients were homebound when they were not; Mokwuah paid patient recruiters to recruit Medicare beneficiaries to Beechwood and Criseven; and Mokwuah paid doctors to sign off on falsified plans of care for the recruited beneficiaries so that Beechwood and Criseven could bill Medicare for those services.
Co-defendant Amara Oparanozie, 47, of Richmond, Texas, pleaded guilty on May 24, to conspiring with Mokwuah and others to commit health care fraud and is awaiting sentencing.
The case was investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Texas. The case is being prosecuted by Trial Attorneys Scott Armstrong and Kevin Lowell of the Criminal Division’s Fraud Section.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the department and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. The Medicare Fraud Strike Force operates in nine locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,500 defendants who collectively have falsely billed the Medicare program for over $12.5 billion.
Jury Convicts Local Man on Multiple Drug and Firearms ChargesRead the Press Release
CORPUS CHRISTI, Texas – A 45-year-old Corpus Man has been found guilty for trafficking more than a kilogram of cocaine as well as being a felon in possession of both a firearm and ammunition, announced Acting U.S. Attorney Abe Martinez. The federal jury deliberated for approximately 40 minutes following a one-day trial before convicting Elias Gonzalez Alvarez on all counts as charged.
Authorities had learned that Alvarez had been engaged in trafficking cocaine and, on May 12, 2015, conducted surveillance on his apartment in Corpus Christi. Authorities stopped him for a traffic violation as he left his residence. His license was found to be suspended and Alavarez was arrested. At that time, they conducted a search of his vehicle and discovered a box with a bag inside that contained 1.01 kilograms of cocaine.
A search warrant was also executed on his residence, where authorities found a .38 caliber handgun and ammunition. Alvarez is a previously convicted felon who is prohibited from possessing firearms or ammunition per federal law.
Alavarez attempted to convince the jury the drugs found in his vehicle and the gun and ammunition discovered in his apartment did not belong to him. They did not believe his claims and found him guilty as charged.
Senior U.S. District Judge John D. Rainey presided over the trial and has set sentencing for Nov. 21, 2017. At that time, Alvarez faces a minimum of 10 years and up to life in federal prison as well as a possible $5 million maximum fine.
The Texas Department of Public Safety investigated the case with the assistance of the Corpus Christi Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Texas Law Enforcement Gets Safety and Survival TrainingRead the Press Release
HOUSTON – Nearly 100 law enforcement agents and officers from across the state of Texas are attending an officer safety training conference sponsored by the Department of Justice, announced Acting U.S. Attorney Abe Martinez. The officer saftey and wellness training program is entitled Preventing Violence Against Law Enforcement and Ensuring Officer Resilience and Survivability, aka VALOR, and it is part of a the recently-announced Houston Law Enforcement Violent Crime Initiative created to proactively fight violent crime across the Greater Houston area.
“Each day, law enforcement at the federal, state and local levels face numerous threats while on duty,” said Martinez. “It is our job to provide them all the tools necessary to promote the safe execution of their duties as they work together to keep our communities safe”.
Martinez opened the program today which will include presentations by federal, local and state law enforcement experts from across the nation. The three-day conference is being held at Drug Enforcement Administration. The United States Attorney’s Office (USAO) and the Regional Organized Crime Information Center are co-hosting the event which is sponsored by the Department of Justice’s Bureau of Justice Assistance.
The VALOR initiative offers a national response to emerging trends and aims to help law enforcement agencies adequately prepare officers for the threats they face while on duty. The goal is to reduce violence against law enforcement and improve officer survivability. VALOR enables the entire U.S. law enforcement community to have access to and benefit from the latest expertise, analysis, tactics, interdiction techniques and response methods to address this critical problem and to reduce the number of officer fatalities. This goal is achieved through ongoing identification of emerging criminal threats, the development and delivery of knowledge and skills-based training to effectively address those threats as well as the promotion of attentive vigilance among law enforcement to proactively assess ever-changing circumstances.
This long-term officer safety initiative includes the comprehensive and multifaceted training program which is supported by data collection and analysis, policy development support and technical assistance. VALOR is designed to reach thousands of officers and law enforcement managers and policymakers through in-person (classroom and hands-on) and distance-learning efforts, resources and publications and technical assistance.
The VALOR training being offered this week was designed for front-line law enforcement to promote officer safety and help prevent injuries and deaths to law enforcement officers in the line of duty. In this training, participants gain an understanding of emerging threats, including those posed by antigovernment criminal extremists and learn techniques for anticipating and surviving a violent encounter. Officers also learn how to identify concealed weapons and armed gunmen, gain knowledge of the mental and physical skills required for high-risk tactical situations that may involve active shooters, high-risk tactical considerations, specific threat groups and violent criminals as well as an understanding of the importance of self-aid/buddy-aid training.
At a previous event held at the U.S. Attorney’s Office last month, law enforcement executives received training that addressed officer safety issues relevant to the roles and responsibilities of law enforcement executives, discussed the effectiveness of past and current officer safety policies and strategies, and identified and explored new ideas regarding agencies’ approaches to officer safety.
Two Men Plead Guilty to Possession of MarijuanaRead the Press Release
LAREDO, Texas – A Laredoan and a Mexican National have been convicted for their roles in possessing with the intent to distribute 100 kilograms or more of marijuana, announced Acting U.S. Attorney Abe Martinez.
Alan Gonzalez, 28, of Laredo, and Juan Galvan-Hernandez, 40, of Nuevo Laredo, Mexico, admitted they knowingly possessed with the intent to distribute 178 kilograms of marijuana.
On May 18, 2017, Border Patrol (BP) agents observed vehicles acting in a suspicious manner, suggesting they were on the lookout for law enforcement. Gonzalez then drove a vehicle into a tractor-trailer shipping yard near the Rio Grande River in Laredo. Moments later, five individuals jumped out of nearby foliage and ran in the direction of his vehicle. Each individual was carrying a large bundle of marijuana over their heads. One of those people was apprehended and identified as Galvan-Hernandez.
U.S. District Judge Marina Garcia Marmolejo accepted the plea today and set sentencing for Dec. 5, 2017. At that time, Gonzalez and Galvan-Hernandez each face a mandatory minimum of five and up to 40 years in federal prison and a possible $5 million maximum fine. Both have been and will remain in custody pending that hearing.
BP and the Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorney Christopher A. dos Santos is prosecuting the case.
Pharr Man Gets Significant Sentence for Hostage TakingRead the Press Release
McALLEN, Texas – A 32-year-old Pharr man has been ordered to prison for the hostage taking of two Honduran Nationals, announced Acting U.S. Attorney Abe Martinez. A federal jury deliberated less than 45 minutes before convicting Jesus Manuel Ramirez on April 12, 2017.
Today, U.S. District Judge Randy Crane, who presided over the trial, handed Ramirez a 240-month sentence. At the hearing, the court heard from some of the victims who noted that not even illegal aliens should have to endure what they went through. In handing down the sentence, Judge Crane noted Ramirez held a position of responsibility and that he has assaulted one of the victims. Ramirez will also be required to serve three years of supervised release following completion of the prison term.
During trial, the jury heard from several witnesses including the two victims who testified that on May 4, 2014, Ramirez and several co-conspirators began threatening and beating them because their families had not paid their smuggling fees. According to their testimony, on that day, one of the co-conspirators made several phone calls to their family members and conveyed that if they did not pay a sum of money, they were going to beat or kill both men.
Additionally, when the families failed to pay the money, Ramirez became upset and ordered a co-conspirator to restrain them. Both men were tied up and beaten. A family member recorded one of the beatings over the phone which the jury saw at trial. Both men testified that a co-conspirator continued to beat them and attempted to sodomize one of the men. Eventually, one escaped and was able to contact his brother who was being assisted by agents from Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Long Island, New York.
An HSI agent also provided testimony and told the jury he had rescued one of the Honduran men who led them to the apartment where he had been held against his will. Agents searched the apartment and encountered the second Honduran national, dressed only in boxers. Alfredo Jaime Balli, 26, Jose Angel Mayorga, 21, and Gustavo Hernandez-Castro, 30, were arrested at the apartment. Ramirez was arrested in August 2016 when crossing into the United States from Mexico.
Balli, Mayorga and Hernandez pleaded guilty and have been sentenced to 216, 240 and 120 months, respectively.
Ramirez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
HSI in McAllen and Long Island, New York, conducted the investigation with the Pharr Police Department. Assistant U.S. Attorneys Leo J. Leo III and Linda Requénez are prosecuting the case.
Laredo Man Convicted of Receipt of Child PornographyRead the Press Release
LAREDO, Texas – A 26-year-old resident of Laredo has entered a guilty plea to receiving child pornography, announced Acting U.S. Attorney Abe Martinez.
The investigation led authorities to discover Jaime Gerardo Gonzalez was making child pornography videos available for sharing over the internet. Law enforcement executed a search warrant at his residence, at which time they seized a computer hard drive which resulted in the discovery of approximately 308 videos of minors engaging in sexual activities.
Gonzalez admitted to receiving and viewing child pornography and that he had done so for several months in 2016. He further admitted he had watched adult pornography regularly but had become bored with it.
U.S. District Judge Marina Garcia Marmolejo accepted the plea today and has set sentencing for Dec. 6, 2017. At that time, Gonzalez faces a minimum of five and up to 20 years in federal prison as well as a possible $250,000 maximum fine. He was permitted to remain on bond pending that hearing.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with assistance of the Webb County Sheriff’s Department.
Assistant U.S. Attorney Michael Bukiewicz is prosecuting the case which was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Violent Carjacker Ordered to Federal PrisonRead the Press Release
HOUSTON – A 21-year-old Houston man has been ordered to federal prison after shooting a victim multiple times during an attempted carjacking, announced Acting U.S. Attorney Abe Martinez. Adarrion Christie pleaded guilty May 2, 2017.
Today, U.S. District Judge Lynn Hughes ordered Christie to serve 51 months for the attempted carjacking as well as a consecutive 10 years for aiding and abetting the discharging of a firearm during a crime of violence. Following his total 171-month sentence, he will serve five years of supervised release. Additional information was also presented today including letters from the victims in the case. The court also heard from a relative who explained the pain and suffering the families have endured. Christie was further ordered to pay $25,000 in restitution to the victims. In handing down the sentence, Judge Hughes told Christie he knew what would happen when he pulled the trigger, noting “you did what you wanted to do regardless of the consequences.”
Co-defendant Derek Harper, 22, also of Houston, pleaded guilty to aiding and abetting the discharging of a firearm and is set for sentencing Sept. 5, 2017.
On March 31, 2016, Christie and Harper attempted to commit a carjacking. Christie admitted that he “tousled” with the male driver over the keys, which the victim did not want to relinquish because his wife and two-year-old daughter were also in the vehicle. Christie ultimately shot the victim multiple times at close range with a .45 caliber gun. Harper was unarmed and had been ordering the man’s wife to get the baby out of the car. Christie and Harper fled without obtaining the vehicle, but were later found and taken into custody.
Both have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, Harris County Sherriff’s Office and Houston Police Department conducted the investigation. Assistant U.S. Attorney Jennie Basile is prosecuting the case.
Laredo Man Pleads Guilty to Conspiracy to Harbor AliensRead the Press Release
LAREDO, Texas – A 43-year-old resident of Laredo has pleaded guilty to a conspiracy charge for his role in an alien smuggling incident which led to the kidnapping of multiple illegal aliens, announced Acting U.S. Attorney Abe Martinez.
Jesus Osorio admitted during his re-arraignment hearing today that he conspired to harbor and transport undocumented aliens in violation of law.
On July 5, 2016, law enforcement responded to an incident at a residence in Laredo where eight undocumented aliens were kidnapped and held hostage against their will. They had previously made arrangements to be smuggled into the United States. After their arrival, they stayed at a Laredo residence for two weeks.
They were then transported to a second location where Angel Alexis Diaz, 20, Jose Israel Diaz, 43, and Julio Osorio, 40, all of Laredo, held them hostage. The victims reported being beaten, forced to undress and ordered to contact family members to pay a ransom for their release.
Through further investigation, authorities learned Jesus Osorio was the man who drove the aliens from the stash house to the second residence where they were eventually kidnapped. During the course of the offense, one of the undocumented aliens was seriously injured and required hospitalization.
U.S. Magistrate Judge Diana Song Quiroga accepted the plea. Sentencing has been set for Jan. 2, 2018, before U.S. District Judge Marina Garcia Marmolejo. At that time, the Osorio faces up to 20 years in federal prison and a possible $250,000 maximum fine. He will remain in custody pending that hearing.
Angel Diaz, Jose Diaz and Julio Osorio were convicted of conspiracy to kidnap illegal aliens and received sentences of 262-360 months in prison.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of the Laredo Police Department and U.S. Border Patrol. Assistant U.S. Attorney Christopher A. dos Santos is prosecuting the case.
E-Commerce Company and Top Executive Agree to Plead Guilty to Price-Fixing Conspiracy for Customized Promotional ProductsRead the Press Release
HOUSTON - An e-commerce company and its top executive have agreed to plead guilty to conspiring to fix prices for customized promotional products sold online to customers in the United States. Zaappaaz Inc. (d/b/a WB Promotions Inc., Wrist-Band.com and Customlanyard.net) and its president Azim Makanojiya agreed to plead guilty to a one-count criminal violation of the Sherman Act.
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 social media platforms and encrypted messaging applications, such as Facebook, Skype and Whatsapp, to reach and implement their illegal agreements. Specifically, the defendants and their co-conspirators agreed, from as early as 2014 until June 2016, to fix the prices of customized promotional products sold online, including wristbands and lanyards. In addition to agreeing to plead guilty, Zaappaaz has agreed to pay a $1.9 million criminal fine.
“As today’s charges show, criminals cannot evade detection by conspiring online and using encrypted messaging,” said Finch. “In addition, today’s charges are a clear sign of the Division’s commitment to uncovering and prosecuting collusion that affects internet sales. American consumers have the right to a marketplace free of unlawful collusion, whether they are shopping at retail stores or online.”
“Schemes like the defendants’ cause financial harm to consumers who purchase goods and services and to businesses who sell goods and services in compliance with the laws of the United States,” said Martinez. “The United States will continue to investigate and prosecute individuals and businesses who seek to gain an illegal unfair advantage.”
“The FBI stands ready to protect consumers from unscrupulous business practices,” said Turner. “Antitrust laws help protect the competitive process for the benefit of all consumers.”
Makanojiya 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.
Several Face Federal Charges for Katy Armed Bank RobberyRead the Press Release
HOUSTON – A total of six out of eight Houston residents arrested for their alleged involvement in the July 25 armed robbery of First Community Credit Union in Katy are set to appear today in federal court, announced Acting U.S. Attorney Abe Martinez.
Walter Freeman Jordan aka “Wacko,” 30, Jaylen Christine Loring, 21, Daryl Carlton Anderson, 31, Deandre Bendard Santee, 26, Johnathon Nico Wise, 26, Raymond Demond Pace, 19, Zelmer Samuel Bonner, 26, and Derrick Eugene Delane, 25, are charged with aiding and abetting aggravated bank robbery and aiding and abetting the unlawful use of a firearm in the commission of a crime of violence. All but Loring and Pace are set to appear today at 10:00 a.m. before U.S. Magistrate Judge Dena Hanovice Palermo. Loring made her initial appearance yesterday, while Pace is expected to make his first appearance in the near future.
According to the criminal complaint, at approximately 12:52pm on July 25, 2017, a black Toyota Tundra drove to the front of the First Community Credit Union located at 23120 Cinco Ranch Boulevard in Katy. Once there, three individuals entered the bank and allegedly commanded everyone to get on the ground. While inside, two of the robbers jumped the teller counter and demanded credit union employees to open the teller drawers, according to the charges. When one of those employees did not comply quickly enough, one of the robbers allegedly lifted his shirt, brandishing what was described as a black semi-automatic pistol, and punched the employee in the head while yelling “hurry up!” The third robber was also armed with a handgun and was attempting to keep customers and employees compliant. The criminal complaint further alleges that soon thereafter, a fourth robber entered the credit union and screamed “the cops are down the street, let’s go!”
According to the charges, the robbers appeared to be communicating with people outside the credit union via cell phone during the crime.
As they fled the bank with the money, one of the robbers also allegedly accosted and pointed a black semi-automatic pistol at another customer.
According to the criminal complaint, the four robbers returned to the Toyota Tundra and fled the scene along with three other vehicles – a silver Chevrolet Malibu, silver Nissan Rogue and a maroon Volkswagen Jetta. Loring was apprehended a short time later in the Malibu as was Anderson who was driving the Jetta. Shortly thereafter, officers also stopped the Rogue and arrested Santee and Wise.
Authorities pursued the Tundra, which was travelling at speeds up to 120 mph. At one point, the vehicle even drove eastbound in the westbound feeder road lanes of I-10. The 19-mile chase ended at the North Post Oaks Lofts apartment complex on the 1200 block of N. Post Oak Road in Houston, according to the charges. At this location, Jordan, Pace, Bonner and Delane allegedly abandoned the Tundra and attempted to evade police.
Pace was injured when he attempted to run in front of the Tundra. The vehicle was still rolling, and he was pinned between the vehicle and a wall. He was taken into custody and found in possession of a Springfield semi-automatic, model# XD45ACP, according to the complaint. With the help of a K9 unit, officers were also able to arrest Bonner a short distance from the abandoned Tundra.
Jordan and Delane were found hiding in an apartment in the same building where Bonner was arrested. After several hours of negotiation, they exited and were also taken into custody. At that time, law enforcement recovered a Stoeger Cougar .40 Caliber semi-automatic pistol inside the apartment.
If convicted, they face up to 25 years in prison for the bank robbery as well as a consecutive and mandatory seven years for the firearms offense.
The charges are the result of the Houston Law Enforcement Violent Crime Initiative created to proactively fight violent crime across the Greater Houston area. The FBI and the Houston Police Department conducted the investigation. Assistant U.S. Attorneys Richard D. Hanes and Heather Rae Winter are prosecuting the case.
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Canadian Man Convicted of Using Counterfeit PassportRead the Press Release
LAREDO, Texas – A 50-year-old Calgary, Alberta, Canada, man has entered a guilty plea to using a false Israeli passport, announced Acting U.S. Attorney Abe Martinez.
On May 30, 2017, Alexander Fiodor Levin aka Alexander Berezovski approached the Lincoln-Juarez International Bridge in Laredo. At that time, he presented a false Israeli passport under the name of Alexander Berezovski to Customs and Border Protection (CBP) officers. During a subsequent inspection of Levin’s luggage, authorities discovered multiple Belarus passports, a perforating machine, a laminating machine, stamps and other blank documents which could be used to manufacture passports.
Sentencing has been set for Nov. 27, 2017, before U.S. District Judge Marina Garcia Marmolejo. At the time, Levin faces up to 10 years in prison and a possible $250,000 maximum fine. He will remain in custody pending that hearing.
The Department of State - Diplomatic Security Service and Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of CBP. Assistant U.S. Attorney José Angel Moreno is prosecuting the case.
Trucker Arrested with 33 Kilograms of Cocaine Pleads GuiltyRead the Press Release
CORPUS CHRISTI, Texas – A 45-year-old Edinburg man has been convicted of conspiracy to possess with the intent to distribute cocaine, announced Acting U.S. Attorney Abe Martinez.
Hugo Morales admitted to conspiring with others to distribute more than five kilograms of cocaine.
On Feb. 11, 2017, authorities conducted a roadside inspection of the tractor-trailer Morales was driving. At that time, more than 33 kilograms of cocaine was found hidden inside tarps strapped on his flatbed trailer.
As part of his plea today, Morales also agreed to the forfeiture of five vehicles including a Hummer H2, a Chevrolet Corvette, a Chevrolet Camaro and a Harley Davidson Motorcycle as well as cash and jewelry.
U.S. District Judge Nelva Gonzales Ramos accepted the plea and set sentencing for Nov. 16, 2017. At that time, Morales faces a minimum of 10 years and up to life in prison as well as a $10 million fine.
The Drug Enforcement Administration conducted the investigations with assistance of the Texas Department of Public Safety. Assistant U.S. Attorney Robert D. Thorpe Jr. is prosecuting the case.
Mexican Meth Smugglers Sent to PrisonRead the Press Release
LAREDO, Texas – Two Mexican nationals convicted of attempting to import crystal methamphetamine from Mexico have been ordered to federal prison, announced Acting U.S. Attorney Abe Martinez. Juan Jose Acevedo-Azua, 38, and Veronica Rios-Rojas, 37, pleaded guilty Aug. 8 and 10, 2016, respectively.
Today, U.S. District Judge George P. Kazen ordered Acevedo-Azua and Rios-Rojas to serve 120 and 98 months, respectively. Not U.S. citizens, both are expected to face deportation proceedings following their release from prison. In handing down the sentence, Judge Kazen noted that Acevedo-Azua’s higher sentence was due in part because he admitted this was his second or third trip for the same smuggler.
On April 12, 2016, Acevedo-Azua and Rios-Rojas entered the U.S. from Nuevo Laredo, Mexico, and approached the Lincoln-Juarez International Bridge and Gateway to the Americas International Bridge, respectively. Acevedo-Azua had almost 54 kilograms of the crystal methamphetamine concealed within the Ford F-150 he operated, while Rios-Rojas had approximately 34 kilograms within her Nissan Altima. The investigation revealed that each worked for the same individual in Mexico.
Both have been in custody since their arrests where they will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations and Customs and Border Protection conducted the investigation. Assistant U.S. Attorney Homero Ramirez prosecuted the case.
Local Tax Return Preparer Pleads Guilty to Fraudulent Refund SchemeRead the Press Release
HOUSTON – A tax return preparer who operated a local business under various names has been convicted of willfully aiding and assisting in the preparation and presentation of a false U.S. Individual Income Tax Return, announced acting U.S. Attorney Abe Martinez.
According to the criminal information and plea agreement filed in the record of the case, Albert Bobby Daniels Jr. was in the business of preparing income tax returns and operated that business under various names including Home Based Business Tax Services in Houston. Daniels admitted he willfully placed numerous false items on his clients’ income tax returns in an attempt to generate excessive refunds.
The tax return Daniels prepared that served as the factual basis of today’s plea resulted in a tax loss to the United States of $7,263. As part of the plea, Daniels admitted that the total loss to the National Treasury was at least $257,590 for the approximate 45 fraudulent tax returns he prepared. Daniels has agreed to make full restitution to the IRS.
U.S. District Judge Alfred H. Bennett, who accepted the guilty plea, has set sentencing for Oct. 12, 2017. At that time, Daniels faces up to three years in federal prison and a possible $250,000 fine.
The Austin office of IRS – Criminal Investigation conducted the investigation. Assistant U.S. Attorney Jimmy Sledge Jr. is prosecuting the case.
Woman Sentenced for Trafficking MethamphetamineRead the Press Release
McALLEN, Texas – A United States citizen who had been residing in Mexico has been ordered to prison for importing methamphetamine into the country from Mexico, announced Acting U.S. Attorney Abe Martinez. Dina Maria Palacios, 37, pleaded guilty April 4, 2017.
Today, U.S. District Judge Micaela Alvarez took into consideration Palacios’ conduct as well as the fact that she had her 16-year-old daughter with her during the crime. She was ordered to serve 87 months in federal prison to be immediately followed by three years supervised release. In handing down the sentence, Judge Alvarez noted that methamphetamine is one of the worst drugs that destroys people and the high purity level involved in this case made it even more toxic.
At the time of her guilty plea, Palacios admitted that on Jan. 6, 2017, she had driven a vehicle from Mexico into the United States through the Pharr port of entry, knowing the vehicle contained a controlled substance. Upon inspection, Customs and Border Protection (CBP) officers discovered methamphetamine hidden within the rear cargo area of the vehicle. Agents seized 23 packages weighing approximately 25 kilograms of methamphetamine.
Palacios has been in custody without bond since her arrest where she will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations and CBP conducted the investigation. Assistant U.S. Attorney Linda Requénez prosecuted the case.
South Texas Woman Convicted of Sex Trafficking of A MinorRead the Press Release
CORPUS CHRISTI, Texas – A 55-year-old Brownsville woman has entered a plea to one count of sex trafficking of a nine-year-old girl, announced Acting U.S. Attorney Abe Martinez.
Maria Candelaria Losoya appeared before U.S. Magistrate Judge B. Janice Ellington and admitted she was responsible for the continued sexual assault of a nine-year-old victim which began in Brownsville in 2012. Later, she traveled with the victim so that the assault could continue. She further admitted that she did so in exchange for money.
“Rescuing the children from these situations is our immediate concern,” said Mark Dawson, special agent in charge of Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Houston. “While we cannot give back the innocence that's been stolen from them, we can make sure that those who commit these horrible crimes are brought to justice.”
Sentencing is set before U.S. District Judge Nelva Gonzales Ramos on Nov. 16, 2017. At that time, Losoya faces a minimum of 15 years and up to life in federal prison and a possible $250,00 maximum fine. Upon completion of any prison term imposed, Losoya also faces a maximum of life on supervised release during which time the court can impose a number of special conditions designed to protect children and prohibit the use of the Internet. Losoya will also be required to register as a sex offender.
She was permitted to remain on bond pending her sentencing hearing.
HSI, Texas Rangers and police departments in Brownsville and Rockport conducted the investigation.
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."
Resident Alien Heads to Federal Prison for Importing HeroinRead the Press Release
LAREDO, Texas – A 54-year-old legal permanent resident alien who was living in Alabama has been ordered to federal prison following his conviction of importing heroin in to the country, announced Acting U.S. Attorney Abe Martinez. Baltazar Vazquez-Vargas pleaded guilty April 4, 2017.
Today, U.S. District Judge Marina Garcia-Marmolejo sentenced him to 70 months in federal prison. Not a U.S. citizen, he is expected to face loss of his legal status and deportation proceedings following his release from prison. During the hearing, Judge Garcia-Marmolejo asked Vazquez-Vargas if he had thought about what would happen to his life before he committed the crime. Later, the defense attorney noted the defendant’s embarrassment at the situation and that his family had to see it. “This is what happens when you get involved in drug trafficking,” responded Judge Garcia-Marmolejo.
On Nov. 12, 2016, Vazquez-Vargas entered the United States via the Lincoln-Juarez Bridge in Laredo as the driver and sole occupant of a grey 2007 Chevrolet Impala. At that time, he claimed ownership of the vehicle. Customs and Border Protection (CBP) officers discovered an anomaly in the vehicle’s battery. Upon further inspection, officers determined there was a non-factory compartment within the battery containing six bundles, the contents of which tested positive for heroin. The total combined weight was approximately 3.05 kilograms.
Vazquez-Vargas stated that he had recently purchased the Impala and an individual in Georgia had hired him to transport the heroin from Nuevo Laredo, Mexico, to Peachtree City, Georgia, for $5,000. While in Nuevo Laredo, people he did not know changed out the existing battery for another one containing the heroin. He admitted knowing there were narcotics in the battery.
Immigration and Customs Enforcement’s Homeland Security Investigations and CBP conducted the investigation. Assistant U.S. Attorney Michael Bukiewicz is prosecuting the case.
More Operation Trena Sin Trono Defendants Head to PrisonRead the Press Release
LAREDO, Texas – Four more defendants who were convicted in a marijuana trafficking and money laundering conspiracy have been ordered to federal prison, announced Acting U.S. Attorney Abe Martinez. Ricardo Ramirez, 31, and Leslie Bernice Trejo, 24, both of Laredo; and Salvador Saldana Medrano, 38, and Laura Heredia Garcia, 52, both of Nuevo Laredo, Mexico, had all previously pleaded guilty for their roles in the respective conspiracies.
At a hearing that concluded late today, U.S. District Judge Marina Garcia Marmolejo sentenced Medrano to a total of 57 months in prison for his convictions of conspiracy to possess with intent to distribute marijuana and conspiracy to commit money laundering. Garcia and Trejo were convicted in the money laundering conspiracy and will serve respective sentences of 40 and 12 months, while Ramirez received a 37-month-term for his conviction in the drug conspiracy. The court further issued a final order of forfeiture as to Medrano in the amount of $262,000 and $260,000 as to Garcia.
Erasmo Trejo-Nava 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 to include Jaime Montalvo Ruiz and Ovidio Rodriguez. 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 then Nuevo Laredo. Over the course of the conspiracy which spanned from June 10, 2011, through June 4, 2013, authorities made multiple seizures of marihuana that totaled in excess of 21,000 pounds.
Ramirez was identified as being involved in the distribution of one of the marijuana loads transported by the Trejo-Nava Organization between May 15-17, 2012, which amount totaled 568 kilograms.
Medrano was involved in coordinating the delivery of marijuana loads for Ruiz to the organization for transportation to the Dallas area and then coordinating the receipt of drug proceeds from the Trejo-Nava Organization on behalf of Ruiz.
Heredia was a money courier for the organization who was primarily tasked with transporting bulk cash drug proceeds from Laredo to Nuevo Laredo. She would hide the proceeds in her personal vehicle and transport the cash through the international bridge in Laredo.
Trejo was Trejo-Nava’s daughter who had knowledge of her father’s illicit activity and whose role was to assist another identified money courier in the transportation and concealment of drug proceeds totaling $73,240.
To date, a total of 20 defendants have been convicted for their respective roles in the overall conspiracy. Nine have now been sentenced.
The last 11 defendants are scheduled to be sentenced Sept. 20, 2017, to include Trejo-Nava, 44, Rodriguez, 42, both of Laredo, and Montalvo-Ruiz, 45, of Nuevo Laredo.
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, High Intensity Drug Trafficking Area Task Force and IRS - Criminal Investigation with the assistance of Immigration and Customs Enforcement’s Homeland Security Investigations, Laredo Police Department and the Zavala County Sheriff’s Office. Assistant U.S. Attorney Mary Lou Castillo is prosecuting the case.
Mexican Truck Driver and a Laredo Woman Sentenced for Trafficking DrugsRead the Press Release
LAREDO, Texas – A Nuevo Laredo man and a Laredo woman have been ordered to federal prison for their roles in a conspiracy to traffic drugs via the World Trade Bridge, announced Acting U.S. Attorney Abe Martinez.
Daniel Rodirugez Reyna, 45, pleaded guilty to conspiracy to posses with the intent to distribute heroin and methamphetamine April 4, 2017. On that same date, Vanessa Bernal, 34, pleaded guilty for her participation as a co-conspirator in the methamphetamine conspiracy.
Today, U.S. District Judge Marina Garcia Marmolejo handed Reyna a 135-month sentence, while Bernal was ordered to serve 90 months. At the hearing, the Judge considered that while Bernal had no prior criminal history, she had admitted to receiving drugs and transporting drugs to the Nashville, Tennessee, area on two other occasions which warranted the sentence imposed. Judge Marmolejo noted Reyna also had no prior criminal history, but had admitted to transporting drugs for a two-year-period via the World Trade Bridge as a commercial truck driver. Reyna and Bernal will also be required to serve four years of supervised release following completion of the prison term. Not a U.S. citizen, Reyna is expected to face deportation proceedings following his release from prison.
The investigation began in 2014 when authorities learned of a possible drug transaction with a commercial truck driver expected to be crossing drugs via the World Trade Bridge in Laredo. Upon conducting surveillance, they observed Reyna meet with a confidential source at a warehouse in Laredo as he placed a white plastic bag inside the source’s front passenger window. After he departed the area, authorities were able to obtain the bag, which contained three bundles wrapped in clear cellophane wrap and black electrical tape. Laboratory analysis confirmed the three bundles all contained heroin with a net weight of 2.85 kilograms.
On March 25, 2015, agents conducted surveillance of the same white semi-truck Reyna was driving after it crossed in to the United States from Mexico via the World Trade Bridge. Law enforcement followed Reyna as he drove the a warehouse on El Gato Road in Laredo. Shortly thereafter, a red Dodge Journey arrived. Bernal was later identified as the driver. Reyna then exited his vehicle, carrying a plastic shopping bag and placed it in the back seat of Bernal’s vehicle.
After they departed, authorities conducted a traffic stop and found the plastic bag. Inside, they discovered four bundles wrapped in brown tape which all contained crystal methamphetamine with a net weight of 3.9 kilograms.
Previously released on bond, Bernal was taken into custody following the sentencing today where she will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. Reyna has been and will remain in custody.
The Drug Enforcement Administration conducted the investigation with the assistance of task force members of the Webb County District Attorney’s Office and the Laredo Police Department. Assistant U.S. Attorney Mary Lou Castillo is prosecuting the case.
Former BP Agent Sentenced for Attempting to Entice a ChildRead the Press Release
LAREDO, Texas – A 50-year-old former Border Patrol (BP) agent has been ordered to federal prison for attempting to entice a minor to engage in sexual activity, announced Acting U.S. Attorney Abe Martinez. Salvador Contreras pleaded guilty March 7, 2017.
Today, U.S. District Judge Marina Garcia Marmolejo ordered Contreras to federal prison for 132 months. He will also serve 15 years of supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. He will further be ordered to register as a sex offender.
In handing down the sentence, Judge Marmolejo referenced the defendant's claim that this was all part of a fantasy, noting he travelled a very long way to make the fantasy a reality. She further commented that she did not sense any real empathy from Contreras for what he was going to do and mentioned that some of his comments at the hearing were troubling. Contreras called himself a sex addict and that he was just "looking for his next high."
Contreras was arrested Dec. 2, 2016, in Cotulla. Prior to that, he had been in contact with an undercover agent whom he believed had an eight and 14-year-old daughters. During their conversations, Contreras transmitted numerous images of child pornography. He then travelled from Del Rio to Cotulla believing he would be engaging in sexual activity with both minor females. He was arrested upon his arrival and resigned shortly thereafter.
Customs and Border Protection - Office of Inspector General and Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of the United States Attorney’s Office for the Western District of Texas. Assistant U.S. Attorney Alfredo De La Rosa prosecuted the case.
Firearms Smuggler Pleads GuiltyRead the Press Release
LAREDO, Texas – A 27-year-old Laredoan has entered a guilty plea for his role in recruiting and leading a firearms smuggling ring, announced Acting U.S. Attorney Abe Martinez.
Between March 2016 and November 2016, Juan Diego Madrid recruited several individuals, including two of his brothers, to purchase civilian variants of firearms currently issued to military forces from various local firearms dealers. Madrid then conspired to smuggle the firearms into Mexico.
The straw purchasers Madrid recruited bought at least 36 AR-15 and AK-47-type semiautomatic rifles, Beretta 92FS and DPMS AR-type rifles from Academy and Kirkpatrick Guns & Ammo stores in Laredo and San Antonio. Madrid would purchase the firearms from the straw purchasers and then re-sell them at a profit to a co-conspirator who would then arrange for the firearms to be smuggled into Mexico. Madrid, already a convicted felon, is prohibited from purchasing, owning or possessing firearms.
Madrid will be sentenced before United States District Court Judge Diana Saldana at a date to be determined in the near future. He was permitted to remain on bond pending that hearing.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney (AUSA) Homero Ramirez and Special AUSA Lisa Ezra are prosecuting the case.
Crystal Methamphetamine Smuggler Ordered to PrisonRead the Press Release
LAREDO, Texas – A 23-year-old man has been ordered to federal prison following his conviction for importing and possessing with the intent to distribute crystal methamphetamine, announced Acting U.S. Attorney Abe Martinez. Manual Alfredo Mancillas, of Seattle, Washington, pleaded guilty April 4, 2017, to conspiracy to import, conspiracy to possess with intent to distribute, possession with intent to distribute and importing methamphetamine.
Today, U.S. District Judge Marina Garcia Marmolejo handed Mancillas a total sentence of 84 months in federal prison followed by three years of supervised release.
In January 2017, Mancillas travelled from his home in Seattle to San Antonio. He then boarded a bus bound for Mexico, where he took possession of a small pick-up truck that had crystal methamphetamine hidden in the vehicle’s oil pan.
On Jan. 19, 2017, Mancillas applied for entry into the United States from Mexico at the Lincoln Juarez International Bridge in Laredo. At that time, Customs and Border Protection officers discovered the crystal methamphetamine, which had a weight of four kilograms.
Mancillas has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Giselle S. Guerra prosecuted the case.
Mexican National Pleads Guilty to Importing Cocaine and MethRead the Press Release
LAREDO, Texas – A Mexican man has pleaded guilty to a conspiracy charge for his role in importing cocaine and methamphetamine into the United States, announced Acting U.S. Attorney Abe Martinez.
Rafael Hernandez-Arrioja admitted during his re-arraignment hearing today that he knowingly imported 2.09 kilograms of cocaine and 2.34 kilograms of methamphetamine within the plastic engine manifold cover of his Volkswagen Golf. At the time of his arrest, he claimed to have no knowledge of the drugs. He initially stated he was driving to the outlet malls in San Marcos for the purpose of buying clothes.
Sentencing will be set at a later date before U.S. District Judge Diana Saldana. At that time, Hernandez faces a mandatory minimum sentence of 10 years and up to life in federal prison and a possible $10 million fine. He will remain in custody pending that hearing.
Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) conducted the investigation. Assistant U.S. Attorney Christopher A. dos Santos is prosecuting the case.
Local Man Heads to Prison for Armed Drug Trafficking of Synthetic NarcoticsRead the Press Release
VICTORIA, Texas - A 21-year-old Victoria man has been ordered to federal prison for possessing a firearm during a drug trafficking offense, announced Acting U.S. Attorney Abe Martinez. Terry Ray White Jr. pleaded guilty May 1, 2017 to conspiracy to possess with intent to distribute a synthetic cannabinoid and possession of a firearm in furtherance of a drug trafficking crime.
Today, Senior U.S. District Judge John Rainey sentenced White to 36 months for the drug offense followed by a consecutive 60 months for possessing the firearm. The total 96-month sentence will be immediately followed by three years of supervised release. In handing down the sentence, the court acknowledged the significant danger of synthetic narcotics and remarked that repeated possession of firearms with drugs was an aggravating factor.
During the conspiracy, law enforcement had stopped White for traffic violations and found him in possession of large quantities of synthetic cannabinoid packages as well as several handguns. The investigation revealed White was connected to the distribution of the synthetic cannabinoids between Houston and Victoria. Laboratory analysis confirmed the presence of a scheduled substance, AB-CHMINACA, and 5F-MDMB-PINACA and FUB-AMB, controlled under the Controlled Substance Analog Act.
Synthetic cannabinoids aka “Spice” or “K2” pose a nationwide health concern that is on the rise and posing a serious threat to public health and safety. The effects of these drugs have been described as unpredictable, with wide-ranging physiological effects to include possible kidney damage and gastrointestinal distress to possible seizures and even psychosis. The drugs are often made in unsafe and dirty environments in which they are created, to include inconsistent batches blended in cement mixers and similar equipment. This can result in “hot spots” in which one sample could have a significantly greater amount of harmful chemical than another. They are often packaged attractively to appeal to teenagers and young adults.
White has been in federal custody since his arrest March 21, 2017. He will remain there pending transfer to a U.S. Bureau of Prisons facility to be designated in the near future.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, Texas Department of Public Safety and Port Lavaca Police Department conducted the investigation. Assistant U.S. Attorney Lance Watt is prosecuting the case.
Final Two Ordered to Prison in 10-Defendant Marijuana ConspiracyRead the Press Release
BROWNSVILLE, Texas – The remaining defendants charged in a 10-defendant marijuana conspiracy have all been ordered to federal prison, announced Acting U.S. Attorney Abe Martinez. The 10 were charged in a multi-state drug trafficking conspiracy that had been trafficking narcotics since 2010.
Jose Angel Marichalar, 36, of Mission, had pleaded guilty to conspiracy to commit money laundering and possession with intent to distribute more than 1000 kilograms of marijuana while Jesus Gonzales, 46, of Hidalgo, previously pleaded guilty to possession with intent to distribute more than 1000 kilograms of marijuana
Today, U.S. District Judge Hilda Tagle sentenced Marichalar to 156 months in federal prison. Gonzales received a 112-month-term of imprisonment. Marichalar’s sentence includes upward adjustments or increases in his calculated sentencing guideline range because he was found to be a leader within the conspiracy and found to have maintained premises to facilitate the offloading, processing and distribution of illicit narcotics.
Marichalar and Gonzalez have also forfeited their interests in several pieces of real estate and numerous personal items, including cars, tractors, trailers, guns and jewelry, valued at more than $1.5 million. They have also agreed to a $10 million money judgment against them. Marichalar was also ordered to pay a $50,000, while Gonzalez was ordered to pay a $25,000 fine.
The other eight charged and convicted in the case were previously sentenced to terms ranging from 38 – 189 months in federal prison.
All were part of a multi-state drug trafficking and money laundering organization that had existed since 2010. The drug trafficking organization, based out of the Rio Grande Valley, would hire out-of- state truck drivers to haul loads of produce with ton quantities of marijuana hidden in false compartments. Drug proceeds would then be transported back to the Rio Grande Valley. The conspiracy extended to Indiana, Kentucky, Illinois, North Carolina and Tennessee.
The case was the result of a nearly three-year Organized Crime Drug Enforcement Task Force investigation led by the Drug Enforcement Administration with the assistance of Internal Revenue Service-Criminal Investigation; Immigration and Customs Enforcement’s Homeland Security Investigations; Bureau of Alcohol, Tobacco, Firearms and Explosives; FBI; Sheriff’s Offices in Cameron and Zapata Counties; Hidalgo County High Intensity Drug Trafficking Area task force; Border Patrol and the Brownsville Police Department. Assistant U.S. Attorney Angel Castro is prosecuting the case.
Three South Texas Men Charged with Online Solicitation of a MinorRead the Press Release
CORPUS CHRISTI, Texas - Three local men are in custody on separate, but similar cases of soliciting a minor for sexual purposes, announced Acting U.S. Attorney Abe Martinez.
The federal criminal complaints were filed yesterday against Spencer Salcedo, 41, and Jesse Hernandez, 52, both of Corpus Christi, and Darrell Freeze, 54, of Pettus. Salcedo was taken into custody today and is expected to make his initial appearance before U.S. Magistrate Judge B. Janice Ellington at 2:00 p.m. Hernandez and Freeze were taken into custody on related charges last week and made their appearances in federal court yesterday, at which time they were temporarily ordered into custody pending a detention hearing set for July 31.
All were arrested as part of Operation Hidden Predator, a joint operation conducted by 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.
“Our children are our nation’s most valuable asset,” said Special Agent in Charge Perrye K. Turner of the FBI. “The Federal Bureau of Investigation will utilize and combine all of our resources with our federal, state and local partners to effectively and efficiently safeguard our children.”
The charges allege the men were communicating with a person they believed was the mother of two minor children — ages 14 and 11. Each man allegedly expected to meet and engage in sexual contact with the minors. They were arrested as they arrived at the designated meeting place.
If convicted, each man faces a minimum of 10 years and up to life in federal prison and a possible $250,000 fine.
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
Registered Sex Offenders Ordered into Custody on Allegations of Domestic Sex TraffickingRead the Press Release
HOUSTON - Two men have been charged in a four-count indictment with sex trafficking of minors and conspiracy to do so, announced Acting U.S. Attorney Abe Martinez.
A federal grand jury returned the indictment under seal against Jamine Lake, aka Pimpin or PI, 27, and Ronnie Presley, aka Fresh or Bubba or Tony, 35, both of Houston, on July 13, 2017. It was unsealed as Lake and Presley were arrested July 19 and 26, respectively. Today, U.S. Magistrate Judge Dena Hanovice Palermo found both to be a danger to the community and ordered they remain in custody pending further criminal proceedings.
The indictment charges both men with conspiracy to traffic women and children for the purposes of commercialized sex and sex trafficking of children and sex trafficking by force, fraud and coercion. Lake is also charged with violating his supervised release from a 2013 conviction for similar federal offenses.
According to information presented in court, Presley and Lake were allegedly working together to traffic three minor females ranging in age from 13 to 17 in an area near Bissonett in Houston. During part of the conspiracy, Presley was allegedly giving orders from jail. The court also heard today that one of the minors allegedly went to the jail to put money in Presley’s account using cash earned from commercial sex acts. According to the allegations, Lake and Presley communicated with each other and one of the minors via cell phone.
If convicted, the men face up to life in prison and a possible $250,000 fine.
The Houston FBI Child Exploitation Task Force conducted the investigation. Assistant U.S. Attorney Sherri Zack 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.
Melendez Family Members Sentenced in South Laredo Drug ConspiracyRead the Press Release
LAREDO, Texas – Three brothers and a nephew of the reputed leader of the Melendez drug trafficking organization from South Laredo have been sentenced for their roles in the conspiracy, announced Acting U.S. Attorney Abe Martinez.
The brothers - Gerardo Melendez, 34, Rafael Andres Melendez, 45, and Mario Alberto Melendez, 37, all of Laredo – and their nephew - Jesus Rosendo Garcia-Melendez, 24, also of Laredo - had all previously pleaded guilty for their crimes. Today, U.S. District Judge Diana Saldaña ordered Rafael Melendez to serve 198 months, while Garcia-Melendez, Gerardo and Mario Melendez were sentenced to 87, 168, and 120 months, respectively. Each will also serve five years of supervised release following completion of their sentences. Rafael Melendez was also ordered to pay a $10,000 fine. The court also issued a final order of forfeiture for $500,000 against Rafael and Gerardo Melendez.
The four men were held accountable for more than 1.2 kilograms of crack cocaine. In addition, the court upwardly departed from the U.S. Sentencing Guidelines for possessing of a firearm and engaging in credible threats of violence, maintaining a drug premises and leadership roles in the organization. During the hearing, the court determined that all four men were engaged in a long-lasting drug distribution conspiracy. Judge Saldaña further noted that their activities were shameful and caused a lot of heartache, not just for their individual families, but also for the entire community. She took note of the number of state arrests and encounters with law enforcement which had gone unpunished for a very long time and necessitated the federal government stepping in to stop the drug-trafficking and violent activities of the Melendez organization.
Gerardo Melendez operated a crack distribution point, while Rafael and Mario Melendez and Garcia-Melendez operated and supplied a separate distribution point for the Melendez drug trafficking organization. Adan Melendez aka “12,” 41, and his two sons ran the organization which distributed cocaine, crack and marijuana in South Laredo from at least 2012 until they were arrested in the summer of 2014. Testimony during Adan Melendez’s trial revealed he profited approximately $1,200 per day from his operations and spent tens of thousands on luxury cars for himself and his sons.
Adan Melendez was sentenced earlier this year to life in prison.
To date, 26 have been sentenced for their roles in the conspiracy. The final four will be sentenced tomorrow.
The Drug Enforcement Administration, Laredo Police Department, Webb County Sheriff’s Office and Texas Department of Public Safety conducted the Organized Crime Drug Enforcement Task Force investigation dubbed “Operation Revocation.” Assistant U.S. Attorneys José Angel Moreno is prosecuting the case.
New Caney Man Charged with Producing Child PornographyRead the Press Release
HOUSTON – A 39-year-old resident of New Caney has been taken into custody on federal charges of sexual exploitation of a child, announced Acting U.S. Attorney Abe Martinez.
Joshua James Holmstedt is suspected of actively engaging in the sexual exploitation and sexual abuse of a minor female under the age of five, according to the charges. He was taken into federal custody today and made his initial appearance before U.S. Magistrate Judge Dena Hanovice Palermo at 10:00 a.m. At that time, he was temporarily ordered into custody pending a probable cause and detention hearing set for July 27 at 2:00 p.m.
According to the criminal complaint, Holmstedt engaged in conversations via a specific social media forum believed to be frequented by individuals who have a sexual interest in children. The service randomly pairs users in one-on-one chat sessions where they can chat anonymously. Users type in search words and the forum pairs them with random strangers who typed in the same search words. Holmstedt allegedly saw a post that contained terms commonly associated with the sexual exploitation of children and had responded to it.
During the course of the chats, Holmstedt allegedly claimed he was sexually active with a minor female and claimed he watched pornographic material with her. Holmstedt later sent an image and four videos he claimed were of the minor, some of which focused on her vagina, according to the charges. He also allegedly sent other videos of other prepubescent children engaged in sexual acts and masturbation.
If convicted, Holmstedt faces a minimum of 15 and up to 30 years in federal prison and a possible $250,000 maximum fine.
The FBI conducted the investigation with assistance of the Montgomery County Precinct 4 Constable’s Office.
Assistant U.S. Attorney Sherri Zack is prosecuting the case, which was brought as part of Project Safe Childhood - a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Local Crime Boss and Crew Headed to Federal PrisonRead the Press Release
LAREDO, Texas – A convicted heroin smuggler who was also the leader of an alien smuggling operation has been ordered to federal prison along with several members of his organization, announced Acting U.S. Attorney Abe Martinez along with Special Agent in Charge Shane Folden of Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) and Acting Deputy Chief Patrol Agent Joel Martinez from the Laredo Sector Border Patrol. Mariano De La Cruz, 32, aka “Rayo” and “El Pelon,” of Laredo, pleaded guilty April 13, 2016, to two different indictments charging him with conspiring to possess with the intent to distribute heroin and the alien smuggling conspiracy, respectively.
Today, U.S. District Judge Marina Garcia Marmolejo ordered him to serve a combined sentence of 206 months in federal prison. Also sentenced today were David Cuevas, 25, and Sara Rodriguez, 40, both of Laredo, and Juan Gerardo Rodriguez-Mantos, 34, an undocumented alien from Mexico living in Laredo who was the brother of Rodriguez. They had also pleaded guilty for their respective roles in the alien smuggling conspiracy. Cuevas received a sentence of 60 months in prison, while Rodriguez was ordered to serve 84 months. In sentencing Rodriguez-Mantos, the court considered the fact that he had sexually assaulted some of the victims. He received a 252-month-term of imprisonment for the alien smuggling conspiracy and for being an illegal alien in the United States after deportation. De La Cruz and Cuevas will also serve five years on supervised release following completion of their sentences, while Rodriguez was ordered to serve a three-year-term. Not a U.S. citizen, Rodriguez-Mantos is expected to face deportation proceedings following his release from prison.
“HSI is dedicated to working closely with all of our law enforcement partners to effectively in identify, arrest and prosecute individuals involved in exploiting people,” said Folden. "Criminals who illegally smuggle people into and throughout the country place personal profit ahead of public safety. For this reason, HSI will continue to utilize its broad authorities to dismantle human smuggling organizations.”
“I commend the men and women of the Department of Homeland Security representing the Joint Task Force-West South Texas Corridor Laredo Area Team who worked tirelessly to dismantle this organization,”said Joel Martinez. “Their joint efforts represents our commitment in disrupting and dismantling criminal organizations in South Texas.”
In addition to arranging for the shipment of almost two kilograms of heroin from Laredo to Rhode Island, De La Cruz led a multi-city organization that transported at least 140 undocumented aliens from Laredo and Hebbronville to San Antonio and other locations over a one-year-period from late 2014 until his arrest in late 2015. Cuevas was De La Cruz’s second in command. In that role, he relayed messages to and from De La Cruz, who was running the organization from prison. Rodriguez operated stash houses in Laredo for De La Cruz and also transported aliens to the brush where smugglers would then guide them around Border Patrol checkpoints.
Rodriguez-Mantos assisted his sister in running the stash houses, maintained order among the aliens and was a part-time foot guide. During that time, he sexually-assaulted some of the undocumented female aliens and brutalized other aliens who refused to comply with his orders. At times, he demonstrated his authority with a baseball bat and threatened them with a rifle that he claimed was a “BB” gun.
Cuevas was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future. De La Cruz and the others have been and will remain in custody.
Three others who also pleaded to the alien smuggling conspiracy were sentenced previously to terms ranging from 24-36 months in prison.
In the drug conspiracy, Juan Contreras, 29, of La Vernia, received a 60-month-term of imprisonment for physically transporting the heroin to Rhode Island.
HSI and Border Patrol conducted the investigation. Assistant U.S. Attorney Homero Ramirez prosecuted the case.
Zeta Leader “Talivan” Sent to PrisonRead the Press Release
LAREDO, Texas - Ivan Velasquez-Caballero, aka Talivan or 50, has been sentenced to federal prison for 30 years following his convictions of conspiracy to possess with intent to distribute controlled substances and conspiracy to launder monetary instruments, announced Acting U.S. Attorney Abe Martinez.
Velasquez-Caballero was a plaza boss for Nuevo Laredo in 2004 under the Gulf Cartel and one of the leaders of the Zetas drug cartel from 2005 until his arrest by Mexican authorities in August 2012. He pleaded guilty April 7, 2014.
Today, U.S. District Judge Micaela Alvarez ordered Velasquez-Caballero to federal prison for 360 months and imposed a forfeiture order of $10 million. At the hearing, the court noted that here was sufficient evidence to show that the Zetas were probably responsible for starting the violence that still plagues Mexico today, stating that even though it has morphed into something different now, Velasquez-Caballero had some responsibility for that. Not a U.S. citizen, Velasquez-Caballero is expected to face deportation proceedings following his release from prison.
The charges stem from a Feb. 17, 2010, indictment charging Velasquez-Caballero and 33 others with 47 counts alleging drug conspiracy, kidnapping conspiracy, firearms conspiracy, money laundering conspiracy, conspiracy to kidnap and murder U. S. citizens in a foreign country, use of juveniles to commit a violent crime, accessory after the fact, solicitation, as well as substantive money laundering, drug trafficking and interstate travel in aid of racketeering charges.
At the hearing today, the court also heard from the father of a missing Laredo woman. He stated that Velasquez-Caballero had information about her disappearance and that he would like an opportunity to sit down with him to talk about that matter. While the court was not holding Velasquez-Caballero personally responsible for the murders that were committed in this case, the court noted that he was a ranking member when those murders were ordered. Judge Alvarez recounted each of the murders that were part of the indictment and reflected on the testimony of the mother of one of the victims. The court noted that the mother’s plea for information as to the location of her son’s body so he could be given a proper burial had stuck with the court.
The drug conspiracy involved the importation and distribution of 150 kilograms or more of cocaine and 1000 kilograms or more of marijuana from Mexico into the United States. Millions of dollars in drug proceeds and over 100 firearms were also exported from the United States to Velasquez-Caballero and others in Mexico.
To date, 15 others have been convicted by plea or trial.
Velasquez-Caballero, 47, of Nuevo Laredo, Tamaulipas, Mexico, has been in custody in the U.S. since he was extradited to Laredo on Nov. 21, 2013, where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration and the Laredo Police Department conducted the Organized Crime Drug Enforcement Task Force investigation with the assistance of Immigration and Customs Enforcement’s BEST task force, FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives, Texas Department of Public Safety, U.S. Marshals Service, Webb County District Attorney’s Office and the Webb County Sheriff’s Office. Assistant U.S. Attorney José Angel Moreno prosecuted the case.
Two Appear in Court for Sex Trafficking of A MinorRead the Press Release
CORPUS CHRISTI, Texas – A South Texas woman and a former Rockport man have appeared in federal court following their arrests for sex trafficking of a nine-year-old girl, announced Acting U.S. Attorney Abe Martinez.
A grand jury indicted David Keith Wills, 64, now of North Potomac, Maryland, along with Maria Candelaria Losoya, 55, of Brownsville, on June 28, 2017. They were arrested July 14. Today and yesterday, Losoya and Wills made their respective appearances before U.S. Magistrate Judge Janice B. Ellington. At the hearings, the court heard testimony that Wills and Losoya started sexually assaulting a nine-year-old victim in Brownsville in 2012. Wills later moved to Rockport. After that time, the court heard that Losoya traveled with the victim from Brownsville to Rockport so that Wills could continue the abuse in exchange for money, according to the allegations.
Wills was permitted release upon posting a $5 million bond. Losoya’s conditions of release are pending.
The indictment alleges that between Sept. 1, 2012, and April 7, 2015, Wills and Losoya trafficked a minor under the age of 14 for commercial sex using force, fraud or coercion. If convicted, both face a minimum of 15 years and up to life in federal prison as well as a possible $250,000 maximum fine. Upon completion of any prison term imposed, both also face a maximum term of life on supervised release and will be required to register as a sex offender.
Immigration and Customs Enforcement’s Homeland Security Investigations, Texas Rangers and police departments in Brownsville and Rockport conducted the investigation.
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."
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law
RGV Pharmacy Owner and Marketer Arrested in Connection with Health Insurance Fraud SchemeRead the Press Release
McALLEN, Texas ‐ The owner of Penitas Family Pharmacy aka Riverside Pharmacy and a marketer employed by the pharmacy have been indicted in connection with a scheme to defraud Blue Cross and Blue Shield of Texas, announced Acting United States Attorney Abe Martinez.
A federal grand jury returned a 16-count sealed indictment against Omar Espericueta and Oscar Elizondo on July 18, 2017. It was unsealed in its entirety this afternoon as Elizondo, 47, of Pharr, turned himself in to authorities. He is expected to make his initial appearance before Judge Peter Ormsby Monday, July 24, 2017, at 10:30 a.m. The owner of the pharmacy - Espericueta, 45, of Mission - was taken into custody Thursday and made his initial appearance today before U.S. Magistrate Judge Dorina Ramos.
Both are charged with conspiracy to commit health care fraud, seven counts of health care fraud and six counts of aggravated identity theft.
According to the indictment, the scheme involved submitting more than $1.7 million in fraudulent claims to Blue Cross and Blue Shield of Texas for expensive pain patches and scar creams. The defendants allegedly targeted employers that carry employee health insurance through Blue Cross, such as the City of Mission, City of Pharr, Frontera Produce and Point Isabel Independent School District, among others. Working with contacts at those entities, Elizondo and other marketers offered meals, drinks and promises of “free” prescription pain patches and scar creams to entice employees to turn over their insurance information, according to the indictment. The insurance information and fraudulent prescriptions were then allegedly used to submit fraudulent and medically unnecessary claims to Blue Cross.
Many employees never received any pain patches or scar creams or saw a doctor to obtain a valid prescription, according to the charges. Other employees saw a doctor, but it was a doctor to whom Espericueta was allegedly paying kickbacks in the form of cash, loans and prescription drugs. The indictment further alleges that in some instances, the defendants set up a temporary office for the doctor in a vacant office or a rented recreational vehicle near the restaurant where they solicited employees for the sole purpose of writing fraudulent prescriptions.
Conspiracy to commit health care fraud and health care fraud carry a maximum punishment of 10 years in federal prison and a possible $250,000 maximum fine upon conviction. A convicted for aggravated identity theft carries a mandatory two‐year additional prison term which must be served consecutively to any other prison sentence imposed.
The FBI, Mission Police Department, Texas Department of Insurance – Fraud Unit and Texas Health and Human Services Commission conducted the investigation. Assistant United States Attorney Andrew Swartz is prosecuting the case.
An indictment is an accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Mexican Nationals Sent to Prison for Firearms ChargeRead the Press Release
McALLEN, Texas – Two men who had been admitted into the country from Mexico under a non-immigrant visa have been ordered to prison for illegally possessing firearms, announced Acting U.S. Attorney Abe Martinez. Oscar Gumaro Pruneda-Garcia, 30, and Rene Garcia-Araujo, 25, pleaded guilty Jan. 3, 2017.
Today, U.S. District Ricardo H. Hinojosa took into consideration the fact that both men collectively possessed 12 firearms and ordered Pruneda and Garcia to serve 21 and 15 months, respectively. In handing down the sentence, Judge Hinojosa noted the seriousness of the offense given the gun violence in Mexico. Both are also expected to face revocation of their visas and deportation proceedings following their release from prison.
On Oct. 15, 2016, authorities conducted surveillance at a gun show in McAllen and observed multiple suspicious purchases of semi-automatic firearms. Law enforcement followed and subsequently stopped Pruneda and Garcia after they departed from the gun show, at which time they were taken into custody.
The investigation also led agents to a residence in Weslaco. Searches of the vehicle Pruneda was driving and the Weslaco residence resulted in the seizure of 12 firearms and approximately 67 firearm magazines.
After his arrest, Pruneda said he was being paid to purchase firearms and smuggle them to Mexico. For his part, Garcia admitted that after Pruneda purchased the firearms, he took some of them and placed them in the vehicle.
Foreign nationals who are admitted into the United States under a non-immigrant visa are prohibited from possessing firearms and ammunition, unless they have been admitted to the United States for lawful hunting or sporting purposes or they are in possession of a hunting license or permit lawfully issued in the United States.
Pruneda and Garcia have been and will remain in federal custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of the McAllen Police Department. Assistant U.S. Attorney Linda Requénez prosecuted the case.
Indian Man Convicted for Using Fake Identity to Obtain CitizenshipRead the Press Release
HOUSTON - An Indian man who was ordered deported from the United States has been convicted for using a fake identity to obtain citizenship, announced Acting U.S. Attorney Abe Martinez.
Balbir Singh aka Ranjit Singh, 50, who resided in Houston, had previously attempted to obtain asylum under false pretenses. When that attempt failed, an immigration judge then ordered his deportation from the United States, thus making him ineligible to ever become a naturalized citizen.
However, instead of leaving the country, he changed his name, date of birth, the manner in which he entered the United States and his familial history so that he could obtain lawful immigration status, and later naturalization, based on a marriage to a United States citizen. In the process of obtaining this citizenship, he denied ever being ordered deported, seeking asylum or using a different identity.
In addition, Singh sent a letter to the Department of Homeland Security (DHS) in 2013. In it, he complained about the anxiety and frustration he experienced in having to wait for an extended period at the airport every time he returned from an international trip due to discrepancies in his biometric information. He requested DHS clear these discrepancies.
After obtaining citizenship, a fingerprint comparison established the man ordered previously ordered deported from the United States - Balbir Singh – and the man who later became a naturalized citizen - Ranjit Singh - were one in the same.
U.S. District Judge Ewing Werlein Jr. accepted the plea and has set sentencing for Oct. 13, 2017. At that time, Singh faces up to 10 years in federal prison, a maximum $250,000 possible fine, revocation of his citizenship and enforcement of his outstanding deportation order.
U.S. Citizenship and Immigration Services and Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Adam Goldman is prosecuting the case.