Southern District of Texas
Press releases recorded for this federal judicial district.
Victoria Man Charged with Hate Crime in Burning of MosqueRead the Press Release
VICTORIA, Texas – A federal grand jury in Victoria has returned a three-count superseding indictment against Marq Vincent Perez, 25, for allegedly burning the Victoria Islamic Center on Jan. 28, 2017.
Acting U.S. Attorney Abe Martinez made the announcement along with Acting Assistant Attorney General Thomas E. Wheeler II of the Department of Justice’s Civil Rights Division, Special Agent in Charge Fred Milanowski of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Special Agent in Charge Perrye K. Turner of the FBI and various state and local law enforcement agencies.
Perez was previously indicted for possession of an unregistered destructive device for an incident that occurred on Jan. 15, 2017. The superseding indictment returned today now charges him with a hate crime – damage to a religious property as well as use of a fire to commit a federal felony in relation to the arson at the mosque.
Perez was initially arrested and charged March 3, 2017, in connection with an attempt to blow up a car with a destructive device. At a detention hearing held the following week, court heard evidence linking Perez to a Jan. 22, 2017, burglary of the Victoria Islamic Center as well as a Jan. 28, 2017, burglary and arson of the same mosque. Perez is in custody pending further criminal proceedings.
If convicted, Perez faces up to 20 years in federal prison for the hate crime. He also faces up to 10 years for possessing an unregistered destructive device. If convicted of use of a fire to commit a felony, the penalty is a consecutive and mandatory minimum of 10 years in prison. All of the counts also carry a potential $250,00 penalty.
ATF and FBI conducted the investigation along with the City of Victoria Fire Marshal’s Office, Victoria Fire Department, Victoria Police Department, Texas Department of Public Safety - Criminal Investigations Division and Texas Rangers with assistance of Texas State Fire Marshal’s Office and sheriff’s offices in Victoria and Nueces Counties.
Assistant U.S. Attorneys Sharad S. Khandelwal and Kate Suh are prosecuting the case along with Trial Attorney Saeed Mody of the Department of Justice’s Civil Rights Division.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Former Energy Company Executive Sentenced in Embezzlement SchemeRead the Press Release
HOUSTON – The former CEO of Chase Power Development has been ordered to federal prison following his guilty plea to conspiracy to commit mail and wire fraud, announced Acting U.S. Attorney Abe Martinez. John David Upchurch, 54, of Spring, pleaded guilty Jan. 6, 2017.
Today, U.S. District Judge Sim Lake handed Upchurch a 24-month sentence to be immediately followed by two years of supervised release. He previously paid restitution in the amount of $1.5 million.
Houston-based Quintana Capital Group created Chase Power in order to head start an energy project in Corpus Christi. In July 2008, Upchurch was hired as CEO.
From about June 2008 to about June 2012, Upchurch embezzled a significant amount of money from Chase Power. Throughout his employment with Chase Power, he submitted false invoices for fake projects in order to receive company funds for personal expenses, such as personal travel, hotels, country club memberships, personal car restoration, fishing equipment and a hunting trip. He either mailed the company checks upon issuance or personally took the checks to the merchants.
In addition, Upchurch used his company American Express credit card for his own personal purchases. He would segregate illegitimate American Express expense account summaries and self-approve them for payment on personal items and expenditures.
Upchurch was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation. Assistant U.S. Attorney Suzanne Elmilady is prosecuting this case.
Deputy Attorney General Recognizes SDTX EmployeesRead the Press Release
HOUSTON – Three employees of the of the U.S. Attorney’s Office in the Southern District of Texas (SDTX) were among the 179 members of the Department of Justice recognized by Deputy Attorney General Rod Rosenstein and Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson at the 33rd Director’s Awards Ceremony today in Washington D.C.
The SDTX was one of 35 districts represented at the ceremony which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building.
In his prepared remarks, Rosenstein told the awardees: “These 179 award recipients embody the best of the Department of Justice.… Today’s honorees have earned the esteem of their colleagues. But most importantly, you have earned the gratitude of your fellow citizens — whose communities you have made safer, whose lives you have improved and whose trust you have rewarded. ”
SDTX Assistant U.S. Attorneys (AUSA) Robert Johnson and John Pearson were recognized for their prosecution of Abraham Moses Fisch and Lloyd Glen Williams. Fisch, a Houston defense attorney, and Williams, a former FBI confidential source, defrauded defendants who were facing federal criminal charges. Fisch and Williams collected millions from their victims in return for guarantees that their cases would be dismissed, all under the guise of a fictitious "secret cooperation" scheme involving alleged payoffs to officials at the CIA, FBI, Department of Justice and Medicare. For his conspiracy, fraud, obstruction, money laundering and tax convictions, Fisch was sentenced to 15 years imprisonment, while Williams received a seven-year sentence. Evidence during the 15-day trial demonstrated that both Fisch and Williams lied repeatedly to victims and their family members, interfered with legitimate attorney-client relationships and hid their activities from the presiding judges. For more information, see the press release issued at the time of sentencing.
AUSA Fred Hinrichs from the SDTX Civil Division was recognized for consistently winning difficult tort cases through outstanding discovery and motion practice. Through his efforts, a number of high exposure cases were decided in favor of the government, including a complex medical malpractice claim, a sensitive Bivens case involving discovery on qualified immunity and a complicated civil rights suit involving a wrongfully detained foreign national. AUSA Hinrichs' outstanding legal skill, combined with his well-planned and executed discovery and motion practice, led directly to the succession of his office's mission and reflect great credit upon the Department of Justice.
EOUSA provides oversight, general executive assistance and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit the Offices of the United States Attorneys.
Two Houston Residents Arrested in Identity Theft SchemeRead the Press Release
HOUSTON – A Houston man and woman have been charged in connection with a scheme that used stolen identifying information to file false tax returns and unemployment insurance claims, announced Acting U.S. Attorney Abe Martinez.
A grand jury returned a sealed indictment against Trenecia Moore, 33, and Michael Muniz, 27, yesterday. They were taken into custody this morning, at which time the indictment was unsealed. They are expected to make their initial appearance before U.S. Magistrate Judge Nancy Johnson at 2:00 p.m. today.
The indictment alleges Moore and another individual filed false tax claims and unemployment insurance claims with identifying information of others. They then allegedly loaded the funds from those false claims onto debit cards and had them delivered to false addresses. According to the indictment, Muniz assisted them in retrieving the cards and withdrawing the funds.
Moore and Muniz are both charged with conspiracy to commit access device fraud and face up to five years in federal prison. Moore is also charged with two additional counts of aggravated identity theft which carries a mandatory and consecutive 24-month prison sentence. The charges also carry the possibility of up to a $250,000 fine.
The Department of Labor – Office of the Inspector General, Internal Revenue Service – Criminal Investigations and Texas Workforce Commission conducted the investigation with the assistance of the FBI. Assistant U.S. Attorney Andrew Leuchtmann 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.
Nigerian Immigrant Sentenced for Tax FraudRead the Press Release
HOUSTON – A 29-year-old from Nigeria who was residing in Houston has been ordered to federal prison following his conviction in a stolen identity tax fraud scheme, announced Acting U.S. Attorney Abe Martinez. Oriola Samuel Odulate pleaded guilty Jan. 26, 2017, to conspiracy to steal public money.
Today, U.S. District Judge Alfred H. Bennett sentenced him to 24 months in federal prison and ordered him to pay $268,017 in restitution to the IRS.
Odulate and other unknown coconspirators defrauded the government by filing false and fraudulent income tax returns. Co-conspirators unlawfully acquired the personal identifying information (PII) of others such as names, dates of birth, Social Security numbers and addresses. They then used the unlawfully acquired PII to file fraudulent tax returns that requested refunds in the names of the victims.
The IRS sent refunds to bank accounts that Odulate opened and controlled. He received the money from the unlawful refunds, withdrew it from his bank account and then distributed the funds to co-conspirators.
IRS-Criminal Investigation conducted the investigation. Assistant U.S. Attorney Jay Hileman is prosecuting the case.
Final Man Convicted in Cocaine ConspiracyRead the Press Release
HOUSTON – With the final plea today, three Houston men have been convicted for their roles in a $1 million narcotics trafficking conspiracy, announced Acting U.S. Attorney Abe Martinez.
Today, Robert Ashleigh Whitten, 38, pleaded guilty to conspiracy to possess with intent to distribute cocaine. Lalo Buddy Perez, 26, and Michael Anthony Patran, 28, pleaded guilty to the conspiracy and to possession of cocaine with intent to distribute in February 2017.
In 2016, law enforcement personnel began investigating a drug trafficking organization distributing significant quantities of cocaine in the Houston area. Agents quickly confirmed that Patran and Perez were both major suppliers and distributors within the Houston and Magnolia, Texas, community. Through the course of the investigation, agents also confirmed that Patran and Perez conspired with Whitten to distribute cocaine and the proceeds from the narcotics trafficking.
On Sept. 6, 2016, authorities conducted a traffic stop on a vehicle Perez was driving with Patran as passenger. At that time, law enforcement discovered a blue Puma gym bag containing 20 individually-wrapped packages of U.S. currency, which totaled approximately $237,475. They also found an AK-47 assault rifle and Walther P99 pistol.
Shortly thereafter, law enforcement agents observed Whitten at a gas station and contacted him. He lied to the police about his identity and attempted to flee, but was captured immediately. Upon a search of his Dodge Ram truck, authorities found more than 18 kilograms of cocaine and approximately $666,638.00 in his vehicle. Some of the cocaine was open and spilled into a cooler which caused an odor that permeated the vehicle.
All three men have been and will remain in custody pending sentencing, set for Nov. 16, 2017, before U.S. District Judge Sim Lake.
The Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorneys Julie N. Searle and Rick Bennett are prosecuting the case.
Federal Jury Convicts Mission, Texas Man for Role in Drug Trafficking / Money Laundering ConspiracyRead the Press Release
In San Antonio this afternoon, a federal jury convicted 45–year-old Reymundo Villarreal-Arelis (aka “Mundo”) of Mission, TX, for his role in a drug trafficking and money laundering conspiracy occurring in South Texas, Central Texas and Oklahoma announced United States Attorney Richard L. Durbin, Jr., Western District of Texas; Acting United States Attorney Abe Martinez, Southern District of Texas; Internal Revenue Service-Criminal Investigation Special Agent in Charge William Cotter, San Antonio Division; and, Drug Enforcement Administration Special Agent in Charge Joseph M. Arabit, Houston Division.
Jurors convicted Villarreal-Arelis on one count of conspiracy to possess with intent to distribute five kilograms or more of cocaine and one count of conspiracy to commit money laundering. Jurors found that Villarreal-Arelis and others, including 12 relatives, conspired to (1) engage in financial transactions using proceeds derived from the importation, receiving, concealment, buying, and/or selling cocaine; and (2), transport or transmit monetary instruments to locations outside of the United States in an effort to conceal the source, ownership and control of proceeds derived from unlawful activity.
Evidence presented at trial revealed that the defendant was a member of a significant Rio Grande Valley cocaine trafficking family known as “Los Piojos” led by brothers Gilberto Villarreal-Arelis, Reymundo Villarreal-Arelis, and Juan Villarreal-Arelis (aka ”Juando”) along with their nephew, Jose Luis Villarreal-Gonzalez (aka “Nune”). Since 2000, this organization was responsible for the importation and distribution of thousands of kilograms of cocaine supplied by the Gulf Cartel and subsequently, by Los Zetas. This organization maintained control over smuggling routes stretching from Guatemala to Diaz Ordaz, Mexico, across from McAllen, TX. Cocaine was smuggled into and kept in stash houses in McAllen before being transported to San Antonio, Houston, Dallas, New York, Chicago, Atlanta, Oklahoma, North Carolina and Florida.
Testimony during trial revealed that cocaine sales generated millions of dollars for this organization, some of which was used to purchase more than 50 quarter horses. The defendants used the horse racing industry as one money laundering mechanism for their illegal proceeds.
During this investigation, authorities seized 280 kilograms of cocaine and between $15-20 million in assets attributed to the criminal activity of the defendants including cash in various bank accounts, quarter horses, the Riverside Plaza shopping center in Mission, numerous residences and other real estate properties.
In addition to today’s verdict, this investigation resulted in fourteen (14) individuals and two companies pleading guilty to federal charges prior to jury selection. All are awaiting sentencing. Defendant Gilberto Villarreal-Arelis (aka “Beto”, “Betito”) remains a fugitive.
“Today’s verdict and previous guilty pleas are a testament to the tenacity of IRS-Criminal Investigation special agents when it comes to using their exceptional financial skills to help bring down drug cartels,” said IRS-CI San Antonio Field Office Special Agent in Charge William Cotter. “We’re proud to be a member of a resolute law enforcement effort that strives to dismantle drug trafficking and money laundering organizations.”
This investigation was conducted by the IRS-Criminal Investigation Waco Treasury Task Force comprised of IRS-CI, Irving Police Department, Woodway Public Safety Department and the McLennan County Sheriff’s Office together with the Drug Enforcement Administration’s McAllen, San Antonio and Houston field offices, Homeland Security Investigations and the United States Marshals Service.
Local Man Hammered with 600-Month Prison Sentence for Sexual Exploitation of Children and Tax FraudRead the Press Release
GALVESTON, Texas – A local man has been ordered to federal prison for 50 years following his conviction of sexual exploitation of children and for knowingly making a false claim in the nature of preparing and filing a false tax return, announced Acting U.S. Attorney Abe Martinez along with Special Agent in Charge D. Richard Goss of IRS-Criminal Investigation (CI) and Special Agent in Charge Perrye K. Turner of the FBI. Benjamin Douglas Guidry pleaded guilty Sept. 29, 2016.
Today, U.S. District Judge George C. Hanks Jr. handed Guidry 270 months for each count of production of child pornography in addition to another 60-months for the tax fraud. The sentences were all ordered to run consecutively for a total 600-month-term of federal imprisonment.
In handing down the sentence, Judge Hanks called Guidry the worst kind of predator and said what he did was absolutely horrific. “You solicited the trust, admiration and respect of victims and turned around and used that for your own gratification.” He also noted that if Guidry was willing to do this to children he knew and supposedly loved, he didn’t want to think about what Guidry would be willing to do those he didn’t know.
Guidry was further ordered to pay $201,454 in restitution to the IRS. He will be on supervised release for the rest of life following completion of the prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. He will also be ordered to register as a sex offender.
According to the plea agreement filed in the record of the case and to statements made in court, the IRS had been investigating Guidry for possible tax offenses. In May 2015, authorities executed a search warrant at Guidry’s place of business, Financial Precision Group, at which time they seized several computers and boxes of documents. Agents noticed, among other things, that several files on Guidry’s external hard drive had titles that led the IRS to believe they may contain child pornography. Authorities also noticed text messages on his cell phone that appeared to be inappropriate communications with a minor and a video of a minor.
The FBI joined the investigation and later executed a search warrant at Guidry’s residence. During that search, authorities found items present in the video on Guidry’s cell phone, including clothes worn by one of identified minor victims in the video. They also seized a cell phone and multiple computers.
Guidry was arrested at that time.
On two of Guidry’s external hard drives, authorities ultimately discovered a total of at least 164 images and 28 videos of child pornography. Additionally, a cell phone contained at least three videos of child pornography. One of the videos shows one of the minor victims being penetrated by an adult male. That video contains sounds from the victim demonstrating that the minor, who was protesting what was being done to her, was under the influence of a drug or was deeply sleeping. Another victim discovered she had been recorded on two separate occasions, once via a cell phone propped on the back of a toilet and again by an iPad propped up in the same location.
As to the tax offense, Guidry also agreed the intended income tax loss was between $250,000 and $550,000.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI and IRS-Criminal Investigation conducted the investigation. Assistant U.S. Attorneys Sherri L. Zack and Charles J. Escher are prosecuting the case.
Jury Convicts Local Resident for Importing MethRead the Press Release
BROWNSVILLE, Texas – A federal jury has returned guilty verdicts against a 55-year-old legal permanent resident alien who resided in Matamoros for methamphetamine trafficking, announced Acting U.S. Attorney Abe Martinez. Martin Araiza-Jacobo was convicted of conspiracy to possess and possession of methamphetamine with intent to deliver as well as conspiracy to import and importation of methamphetamine following a two-day trial and approximately two hours of deliberation.
On Jan. 19, 2017, Araiza-Jacobo attempted to enter the United States through a pedestrian lane at the Gateway International Bridge, at which time he declared that he was bringing in sandwiches and two bags of candies from Mexico.
A Customs and Border Protection (CBP) officer inspected the bags and immediately noticed the candies inside the bag did not match with the candy images displayed on the bag. The contents also felt harder than expected. Authorities conducted an X-ray examination which revealed anomalies in both bags. Officers then opened the bags and discovered 83 packages containing 5.19 kilograms of methamphetamine.
Araiza-Jacobo stated he worked as a “cruzador” or a person who helps people cross groceries from the United States to Mexico. He claimed he had crossed into Mexico earlier that day to buy a sandwich for a lady and met an unknown man there who asked him to cross the bags of candy. The man was supposed to call Araiza-Jacobo once back in the U.S. and would give him the name and description of the person to whom he would deliver the candy. Araiza-Jacobo denied ever seeing or talking to the unknown man before.
However, the jury heard evidence that Araiza-Jacobo had been in contact with this man since Jan. 16, 2017. Further, Araiza-Jacobo had actually initiated the contact. Testimony revealed that Araiza-Jacobo had overheard part of a conversation in which a man was looking for someone willing to cross a piñata and a box of candy into the U.S. and ship it to Atlanta, Georgia. Araiza-Jacobo got the man’s number and called him. Less than an hour later, Araiza-Jacobo commented that the trip was set.
He has been and will remain in custody pending sentencing, set for Sept. 13, 2017. At that time, he faces up to life in federal prison and a possible $10 million fine.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorneys Israel Cano III and Jason Corley are prosecuting the case.
Island Man Heads to Prison on Child Pornography ChargeRead the Press Release
BROWNSVILLE, Texas – A 70-year-old resident of South Padre Island has been sentenced to federal prison for possession of child pornography, announced Acting U.S. Attorney Abe Martinez. Howard William Halverson pleaded guilty Nov. 29, 2016.
Today, U.S. District Judge Rolando Olvera considered Halverson’s age and handed him a sentence of 60 months in federal prison. The court further ordered Halverson to pay $50,317.00 in restitution to the known victims discovered in his child pornography collection. Halverson will spend the rest of his life on supervised release after serving his sentence, during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. He will also be ordered to register as a sex offender.
The investigation into Halverson began as authorities were looking into persons utilizing peer-to-peer software to exchange and view child pornography. Federal agents executed a search warrant at Halverson’s condominium on July 6, 2016, which led to the discovery of 1488 images and five videos containing child pornography, 545 of which were of known victims.
Halverson has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations and the Rio Grande Valley Child Exploitation Task Force conducted the investigation.
This case, prosecuted by Assistant U.S. Attorney Jason Corley, 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."
RGV Durable Medical Equipment Company Owner and Four Others Sentenced in Health Care Fraud SchemeRead the Press Release
McALLEN, Texas ‐ The owner of a Rio Grande Valley area durable medical equipment (DME) company has been ordered to federal prison for her role in a scheme to defraud Texas Medicaid through fraudulent billings, announced Acting U.S. Attorney Abe Martinez. Maria Teresa Paz Garza, 41, of McAllen, was previously found guilty by a jury on all counts on Feb. 24, 2017, following a seven-day trial and six hours of deliberation.
Today, U.S. District Judge Randy Crane handed Garza a 144-month sentence to be immediately followed by three years of supervised release. She received 10 years for conspiracy to commit health care fraud and related health care fraud charges as well as an additional two years for aggravated identity theft which must be served consecutively for a total of 12 years in federal prison. In handing down the sentence, Judge Crane imposed enhancements for obstruction of justice for witness tampering, a leadership role and loss to a federal health care program of more than $1 million. Garza was further ordered to pay $1,814,832.98 in restitution based on the loss to the Texas Medicaid program.
Garza, an owner of Hacienda DME located in McAllen, was convicted of submitting false and fraudulent claims to Texas Medicaid for DME that were not provided and/or not authorized by a physician. Garza and her co-conspirators forged and/or caused others to forge the signatures of physicians on the required prescription forms. Hacienda DME billed for larger, higher-paying sizes of pull-ups and diapers regardless of whether those sizes were needed or provided in order to receive higher reimbursements from Texas Medicaid.
Garza also paid illegal kickbacks in the form of cash and/or checks in exchange for patient information, specifically the patient Texas Medicaid numbers. Garza and her co-conspirators bought back supplies that had previously been delivered to Texas Medicaid recipients so that they could utilize the same supplies again in the scheme. Further, they illegally used the identities of physicians in submitting the unlawful billings to Texas Medicaid.
Co-conspirators Bertha Lopez, 62, of Sullivan City, served as a marketer and vendor for Hacienda DME, while Miriam Aguilar, 32, of Rio Grande City, was a delivery driver and recruiter for the company. Nancy Rangel, 31, of Mission, and Yolotzi Lara, 29, of Penitas, were both recruiters for the company. Rangel was also a biller in the scheme. They all also pleaded guilty and were sentenced previously. Lopez received a 21-month-term of imprisonment and was ordered to pay $1,750,565.26 in restitution, while Aguilar was sentenced to 14 months and ordered to pay $1,715,836.99 in restitution. Rangel and Lara were each sentenced to six months of home confinement and ordered to pay $395,698.26 and $294,474.35 in restitution, respectively.
Garza has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Texas Attorney General’s Medicaid Fraud Control Unit, FBI and the U.S. Department of Health and Human Services‐Office of Inspector General conducted the investigation. Assistant U.S. Attorneys Michael Day and Andrew Swartz are prosecuting the case.
Mission Man Handed Significant Sentence for Firearms ViolationRead the Press Release
McALLEN, Texas – A local man has been ordered to federal prison for illegally possessing firearms in connection with a narcotics trafficking operation he ran out of his Mission home, announced Acting U.S. Attorney Abe Martinez. Jose Paco Villegas, 48, pleaded guilty March 31, 2017.
Today, U.S. District Judge Randy Crane handed Villegas a 100-month sentence for being a felon illegally in possession of a firearm in and affecting interstate and foreign commerce. The sentence was enhanced because the court found Villegas possessed the firearms in connection with a drug trafficking crime. He was also ordered to serve a three-year-term of supervised release following his prison sentence.
Authorities identified Villegas as a person trafficking narcotics out of his residence in Mission. During the month-long investigation, Villegas sold cocaine to undercover agents on multiple occasions. A subsequent search of his residence resulted in the discovery of approximately 230 grams of cocaine, one kilogram of marijuana, more than $10,000 and several handguns, including a Beretta .9mm, Taurus .380 and a Taurus .45 caliber.
Villegas had previously been convicted of felony offenses including the use of a firearm in relation to a drug trafficking crime, delivery of a controlled substance, possession of a controlled substance with intent to deliver and theft. Due to these previous violations, he is prohibited from possessing a firearm per federal law.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Drug Enforcement Administration conducted the investigation in conjunction with the Hidalgo County High-Intensity Drug Trafficking Area task force. Assistant U.S. Attorney David M. Paxton is prosecuting the case.
Massive Sentence for Laredo Drug TraffickerRead the Press Release
LAREDO, Texas – A 41-year-old man from Laredo, has been ordered to prison following his conviction of the conspiracy possess with intent to distribute methamphetamine, announced Acting U.S. Attorney Abe Martinez. Esequiel Villarreal pleaded guilty Dec. 15, 2016.
Today, U.S. District Judge Diana Saldana ordered Villarreal to serve a 210-month-term of imprisonment. Villarreal committed the instant offense while on supervised release from a federal drug trafficking conviction in 2000 where he was sentenced to 188 months. Due to the revocation of his supervised release, he will also serve an additional consecutive six months of imprisonment in addition to the other term imposed.
Villarreal came to the attention of law enforcement after learning he was in possession of a large amount of drugs and a possible firearm.
On Oct. 21, 2016, authorities conducted a search of Villarreal’s apartment. At that time, they discovered 9.5 kilograms of methamphetamine concealed in a black plastic bag within his kitchen as well as a .22 caliber pistol in a cabinet above the refrigerator. He was also found to have 3.2 grams of cocaine on his body.
Villarreal has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives and the Laredo Police Department conducted the investigation. Assistant U.S. Attorney Christopher dos Santos is prosecuting the case.
Liquid Methamphetamine Importer Ordered to PrisonRead the Press Release
LAREDO, Texas – A 46-year-old woman has been ordered to federal prison following her conviction for importing methamphetamine into the United States, announced Acting U.S. Attorney Abe Martinez. Sherie Lyn De Sylvia, a U.S. citizen who resided in Tijuana, Mexico, pleaded guilty Feb. 22, 2017.
Today, U.S. District Judge Marina Garcia Marmolejo handed De Sylvia a sentence of 84 months for the methamphetamine conviction followed by four years of supervised release. De Sylvia was on supervised release for a previous conviction in which she had smuggled eight kilograms of methamphetamine, five kilograms of cocaine and five kilograms of heroin inside her vehicle’s spare tire on May 13, 2015, at the Otay Mesa, California, Port of Entry. The court revoked the remainder of that term and further ordered her to prison for 12 months, six months of which will be served consecutively to the other prison term imposed for a total 90-month federal prison sentence. At the hearing, Judge Marmolejo noted to the defendant that “all the emotion shown in court today needs to be channeled when you get out to change your life.”
On June 11, 2016, De Sylvia was detained at the Border Patrol Checkpoint on IH-35 in Laredo. At secondary inspection, agents noticed potential tampering with the fuel tank of De Sylvia’s vehicle. Inside, they soon discovered 30 gallons of liquid methamphetamine.
De Sylvia will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration and Border Patrol conducted the investigations. Assistant U.S. Attorney Christopher S. Coker prosecuted the case.
Mexican Woman Sentenced for Importing MethamphetamineRead the Press Release
LAREDO, Texas – A 24-year-old woman from Guadalajara, Mexico, has been ordered to prison following her conviction of the conspiracy to import methamphetamine, announced Acting U.S. Attorney Abe Martinez. Vanessa Hernandez pleaded guilty Sept. 6, 2016.
Today, U.S. District Senior Judge George P. Kazen ordered Hernandez to serve a 100-month term of imprisonment. Not a U.S. citizen, she is expected to face deportation proceedings following her release from prison.
On July 13, 2016, Hernandez applied for entry into the United States at the Lincoln-Juarez International Bridge in Laredo as a passenger in a Mexican taxi cab. She was travelling with one piece of luggage which showed anomalies within the lining wall. Further inspection of the luggage revealed two clear bags containing 4.02 kilograms of methamphetamine.
Hernandez has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Christopher dos Santos is prosecuting the case.
Drug Smuggler SentencedRead the Press Release
LAREDO, Texas - A 53-year-old Mexican national has been ordered to federal prison following his conviction for conspiracy and possession with intent to distribute 11.05 kilograms of cocaine, announced Acting U.S. Attorney Abe Martinez. Secundino Delgado-Arreola, from Nuevo Laredo, Tamaulipas, Mexico, pleaded guilty June 6, 2016.
Today, U.S. District Judge George P. Kazen sentenced Delgado-Arreola to 50 months in federal prison. Not a U.S. citizen, he is expected to face deportation proceeding following his release from prison.
On March 16, 2016, Delgado-Arreola took part in a conspiracy to smuggle 11.05 kilograms of cocaine from Mexico into the United States. He was driving a tractor truck with Mexican plates. Inside the vehicle was a blue bag in a cardboard box which contained 10 bundles totaling 11.05 kilograms of cocaine.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations and Customs and Border Protection conducted the investigation. Assistant U.S. Attorney José Angel Flores Jr. prosecuted the case.
Former Clemency Grantee Ordered Back to PrisonRead the Press Release
HOUSTON – A Texas City woman who was granted clemency by the former presidential administration has been ordered back to federal prison for violating the terms of her supervised release, announced Acting U.S. Attorney Abe Martinez.
A federal jury convicted Carol Denise Richardson, 49, of Texas City, for conspiracy to possess with the intent to distribute 50 grams or more of cocaine base as well as two counts of possession with the intent to distribute cocaine base. On June 16, 2006, U.S. District Judge Keith P. Ellison noted her extensive criminal history and ordered her to federal prison for the rest of her life.
However, former U.S. President Barack Obama granted Richardson clemency in early 2016. On July 28, 2016, she was released from the U.S. Bureau of Prisons and placed on supervised release for a term of 10 years. During that time, she is required to abide be several conditions or face a return to prison for up to the remainder of that term. Less than a year after her release, Richardson has committed five separate violations of those terms.
On April 13, 2017, she was arrested by the Pasadena Police Department for theft. Not only was that a commission of a law violation, but she is also required to report any law enforcement contact to her probation officer within 72 hours, which she failed to do. She has also failed to maintain regular contact with the U.S. Probation Office and failed to report that she had been terminated from her employment with Home Health Providers for abandoning her position. She also failed to report a change in her residence. In fact, as of May 15, 2017, attempts to reach her were unsuccessful, and her whereabouts were unknown.
Richardson was later located and arrested May 31, 2017, for violating the terms of her federal supervised release. At the hearing today, the government presented evidence in support of her return to prison. “This defendant was literally given a second chance to become a productive member of society and has wasted it,” said Assistant U.S. Attorney Ted Imperato. “She has clearly shown a willful disregard for the law and must face the consequences for her crimes and actions.”
Judge Ellison expressed his disappointment with the defendant, noting that she had wasted the extremely rare opportunity she was given. He then ordered her back to federal prison for 14 months. After serving her sentence, she will again be placed on similar terms of supervised release for five years.
Alton Couple Sentenced for Marijuana Conspiracy Based Out of their Family HomeRead the Press Release
CORPUS CHRISTI, Texas – A local couple will serve 10 years in federal prison for their roles in a drug conspiracy they ran out of their home in Alton, announced Acting U.S. Attorney Abe Martinez. Rodolfo Chavez Gonzalez, 53, pleaded guilty Nov. 29, 2016, as did his wife - Maria Elizabeth Gonzalez, 48.
Today, U.S. District Judge Nelva Gonzales Ramos handed Chavez Gonzalez the 120-month sentence for possession with intent to distribute more than 150 kilograms of marijuana.
His wife was sentenced March 30, 2017, to also serve 120 months in federal prison. Their sentences will be immediately followed by eight-year-terms of supervised release.
The long-term investigation led to the identification of Rodolfo and Maria Gonzalez as the facilitators of multiple marijuana smuggling events, which had been thwarted by agents at the Falfurrias Border Patrol (BP) checkpoint.
Both Rodolfo and Maria Gonzalez admitted they had knowingly hired co-conspirators to transport marijuana, concealed inside of tires, from their family home in Alton to buyers in the Houston area. At the time of their pleas, they also acknowledged they faced enhanced punishment in this case as they each had been previously convicted of the same offense in the Southern District of Texas in 2001.
The couple has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The remaining defendants have all entered pleas of guilty and await sentencing for their respective roles in the conspiracy.
The Drug Enforcement Administration conducted the investigation with the assistance of U.S. Border Patrol. Assistant U.S. Attorney Brittany L. Jensen is prosecuting the case.
Woodlands Woman Charged with Defrauding EmployerRead the Press Release
HOUSTON – A 52-year-old resident of The Woodlands has been charged with defrauding her former employer of more than $1.5 million, announced Acting U.S. Attorney Abe Martinez.
A criminal information was filed May 24, 2017, charging Kavita Nehendra Duvvuru with one count of wire fraud. She is expected to make her initial appearance before U.S. Magistrate Judge Stephen Smith at 10:00 today.
According to the charges, Duvvuru worked for the president of Vinmar International Ltd., a petrochemical, marketing and distribution firm located in Houston. The criminal information alleges that from 2010 through January 2017, Duvvuru made unauthorized charges of personal expenses and unauthorized cash withdrawals on credit cards which were only to be used for Vinmar business expenses. Duvvuru allegedly altered the credit card statements and provided false information to conceal her fraud from Vinmar.
As a result of her scheme Duvvuru caused Vinmar a loss of more than $1.5 million, according to the charges.
If convicted, she faces up to 20 years in federal prison and a possible $250,000 maximum fine.
The criminal information also contains a notice of forfeiture.
The FBI conducted the investigation. Assistant U.S. Attorney John Braddock is prosecuting the case.
A criminal information is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Head of Marijuana Trafficking Cell ConvictedRead the Press Release
LAREDO, Texas – The head of a marijuana trafficking cell has pleaded guilty for his role in a conspiracy to traffic drugs from Laredo to the Dallas area via the use of tractor trailers, announced Acting U.S. Attorney Abe Martinez.
Mexican National Armando Javier Picazo Jimenez, 42, pleaded guilty today to possession with intent to distribute in excess of 1000 kilograms of marijuana.
In August 2013, authorities identified a drug trafficking organization responsible for the transportation and distribution of kilogram quantities of marijuana from Laredo to the Dallas area. Picazo Jimenez was identified as the head of the organization.
His contacts with Mexican sources of supply arranged for the marijuana to be smuggled from Mexico to Laredo. The organization leased Laredo warehouses to stash and prepare the marijuana bundles for further transportation. Picazo Jimenez directed the operation and had other co-conspirators coordinate for cover loads and commercial truck drivers to pick up the marijuana for transportation to the Dallas area.
Three other members of the Picazo Jimenez drug trafficking organization - Armando Eloy Gutierrez, 38, Javier Mota Villanueva, 33 and Leopoldo Rodriguez III, 25, all of Laredo - previously entered pleas of guilty to conspiracy to possess with the intent to distribute marijuana. All three are awaiting sentencing.
Gutierrez was in charge of finding warehouses for the organization to use and then soliciting shipping companies to transport trailers with marijuana and cover with loads of merchandise. He would also act as a scout by following the drivers through checkpoint. Once through, he would then drive with others to the Dallas or Fort Worth area to assist in receiving and unloading the drugs.
Mota-Villanueva worked at the warehouses. He wrapped the marijuana, moved pallets and loaded the drugs onto trailers. He would also travel to Dallas along with Gutierrez.
Rodriguez was tasked with wrapping marijuana and assisting with loading of narcotics onto trailers at a warehouse.
The investigation revealed three warehouse in Laredo that the organization used at different periods from on or about September 2013 to on or about July 31, 2014. They were located on the 1800 block of Aduanales, 200 block of Corpus Christi Street and the 1600 block of West Calton. Three separate marijuana loads were seized that originated from each one of the three warehouses, totaling more than 1600 kilograms.
U.S. Magistrate Judge Scott Hacker accepted the plea today. Sentencing will be before U.S. District Judge George P. Kazen at a date to be determined. Due to the amounts for which they are held accountable, Picazo Jimenez, Gutierrez and Villanueva face a minimum 10 years and up to life in federal prison. Rodriguez faces a minimum of five and up to 40 years imprisonment.
Picazo Jimenez, Gutierrez and Mota will remain in custody, while Rodriguez was permitted to remain on bond pending sentencing.
The Drug Enforcement Administration conducted the Organized Crime Drug Enforcement Task Force Operation known as “Weed Wacker.” Assistant U.S. Attorney Mary Lou Castillo is prosecuting the case.
Angleton Man Convicted on Multiple Child Pornography ChargesRead the Press Release
GALVESTON, Texas – A 44-year old resident of Angleton has entered a guilty plea to one count each of distribution, receipt and possession of child pornography, announced Acting U.S. Attorney Abe Martinez.
John Kevin Waldrip came to the attention of law enforcement following an investigation into persons using the Internet to traffic in child pornography via peer-to-peer software. A detective with Pearland Police Department (PPD) was able to locate and identify a computer as offering to participate in the receipt of child pornography videos through a peer-to-peer network on the Internet. Through the investigation, it was determined that the computer was located at a residence in Angleton.
On June 30, 2016, law enforcement executed a search warrant at the Angleton residence, during which time they seized a computer. A forensic examination on the computer revealed 81 videos and 512 images of child pornography involving minor children engaged in sexually explicit conduct. Some of the videos are of known victims as identified through the National Center for Missing and Exploited Children.
U.S. District Judge George c. Hanks Jr., accepted the guilty plea and set sentencing for Aug. 16, 2017. At that time, Waldrip faces a minimum of five and up to 20 years in federal prison for each of the distribution and receipt charges as well as another possible 10-year-maximum sentence for the possession conviction. Each conviction also carries a possible $250,000 maximum fine. He will remain in custody pending that hearing.
PPD and Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation.
This case, prosecuted by Assistant U.S. Attorney Sherri L. Zack, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Suburban Fugitive Sentenced in Absentia to More than 20 Years in Federal PrisonRead the Press Release
HOUSTON – A 53-year-old Houston-area contractor has been sentenced in absentia for his role in a $16 million loan fraud scheme, announced Acting U.S. Attorney Abe Martinez.
Oscar Cantalicio Ortiz, who had resided in Kingwood prior to becoming a fugitive in this case, pleaded guilty June 30, 2016, to conspiring to commit bank, mail and wire fraud. He was set for set for sentencing April 24, 2017, but failed to appear for that hearing.
Today, U.S. District Judge Kenneth Hoyt sentenced Ortiz in absentia to a 262-month-term of federal imprisonment. He was further ordered to pay $5,462,800 in restitution. At the hearing today, court heard testimony that Ortiz was aware of the previous hearing and that he had cut off his ankle monitor and left it on the side of the road.
He is considered a fugitive and a warrant remains outstanding for his arrest. Anyone with information about his whereabouts is asked to contact the FBI at 713-693-5000.
His codefendant – Houston realtor Seung Min Santillan, aka Suzy, 57, also of Houston – pleaded guilty to the conspiracy and making false statements on a loan application in September 2016. She was previously sentenced to 168 months in federal prison and ordered to pay $5,299,500 in restitution.
Ortiz and Santillan operated a mortgage fraud scheme in which they recruited straw borrowers to purchase residential properties in the Houston area. Loans were obtained from lending institutions to purchase these properties in the names and using the credit of the straw borrowers. The lenders were provided materially false information to induce them to fund these residential loans, including fraudulent appraisal reports. The loans were funded and ultimately fell into default when all the mortgage payments were not made as promised.
Ortiz and Santillan utilized several business entities during the execution of the scheme to defraud including Uptown Builders LLC, Americorp Builders LLC, Luxury Quality Homes LLC and Santi Investments. In recruiting straw borrowers during the scheme, the borrowers were told the residential property would be in their name for a short period while Ortiz made modifications to the property prior to reselling the house. Ortiz and Santillan promised the straw borrowers that they would handle all the costs associated with purchasing and holding these properties.
Once the loans to purchase the residence funded, one or more of the business entities Ortiz utilized would receive a large portion of the loan proceeds. This occurred even when the same property was purchased for the second time in the name of a new straw borrower. The defendants were able to take a large portion of the loan proceeds since the value of the residence was inflated with fraudulent appraisal reports.
The FBI conducted the investigation. Assistant U.S. Attorney Melissa Annis is prosecuting the case.
Belizean Man Ordered to Prison After Attempting to Illegally Enter the CountryRead the Press Release
LAREDO, Texas – A 46-year-old Belizean man claiming to be a U.S. citizen has been ordered to federal prison after being found guilty of attempting to illegally re-enter the United States after deportation, announced Acting U.S. Attorney Abe Martinez. A federal jury sitting in Laredo convicted Jerome Aristedes Martinez, of Belize City, Belize, Feb. 15, 2017, following a two-day trial.
Today, U.S. District Judge Marina Garcia Marmolejo, who presided over the trial, handed Martinez a 33-month sentence. At the hearing, the court considered Martinez’s lengthy criminal history as well as the evidence previously presented at trial. Martinez stated to the court that he would not be returning to the United States again.
The court also heard a motion to revoke Martinez’s supervised release for a prior illegal re-entry case. Martinez entered a plea of “no contest” to allegations he had again re-entered the country illegally. However, Judge Marmolejo found the allegations to be true based on the evidence presented at trial. Martinez’s supervised release was revoked and he was sentenced to 21 months imprisonment to be served concurrently with the other sentence imposed.
As an illegal alien, Martinez is expected to face deportation proceedings following his release from prison.
On Aug. 18, 2015, Martinez attempted to enter the United States at the Lincoln Juarez Bridge, claiming to be a U.S. citizen. At that time, he presented an Illinois Identification card and a Department of Homeland Security/Social Security Administration web-site print-out as proof of his citizenship. However, upon questioning, authorities discovered Martinez was actually a native and citizen of Belize who had been removed from the United States twice before. The jury heard that Martinez had never obtained the proper permission to return to the United States after his last removal.
Martinez admitted to having been previously convicted of illegal re-entry after making false claims to U.S. citizenship. However, he testified that after his most recent removal to Belize, he “became aware” that he had been born in the U.S. Virgin Islands and was, therefore, a U.S. Citizens.
The jury heard that there is no record of Martinez having been born in the U.S. Virgin Islands and that the only birth record in existence is from Belize. The government also produced documents showing his prior statements acknowledging his Belizean citizenship.
Martinez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Customs and Border Protection conducted the investigation. Assistant U.S. Attorneys Sarah M. Ellison and Giselle S. Guerra prosecuted the case.
Rio Grande Valley Area DME Company Owner Sentenced in Health Care Fraud SchemeRead the Press Release
McALLEN, Texas ‐ The owner of a Rio Grande Valley area durable medical equipment (DME) company has been ordered to federal prison following her conviction in a scheme to defraud Texas Medicaid through fraudulent billings, announced Acting U.S. Attorney Abe Martinez. Elva Acevedo Santos, 37, of McAllen, pleaded guilty April 8, 2016, admitting she submitted false and fraudulent claims to Texas Medicaid for DME that was not authorized and/or not provided.
Today, U.S. District Judge Randy Crane handed Santos a 21-month sentence to be immediately followed by three years of supervised release. She was further ordered to pay $581,743.39 in restitution to the Texas Medicaid program as a result of the fraudulent claims she submitted.
Santos was the owner of Hope & Miracle DME in Mission. As part of her plea, Santos admitted she forged and/or caused others to forge the signatures of physicians on the required DME prescription forms also known as Title XIX forms. Santos subsequently used the fraudulent forms as the basis to submit claims to Texas Medicaid and Medicare in order to receive reimbursements.
Santos further admitted she submitted or caused others to submit false or fraudulent claims with Medicare for a patient who was deceased on dates that Santos claimed to have provided diabetic supplies to the patient. The delivery tickets maintained by Hope & Miracle DME contained forged signatures of the deceased beneficiary after the date of her death.
Previously released on bond, Santos was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The Texas Attorney General’s Medicaid Fraud Control Unit and the U.S. Department of Health and Human Services‐Office of Inspector General conducted the investigation. Assistant U.S. Attorneys Michael Day and Andrew Swartz are prosecuting the case.
McAllen Man Convicted of Receiving Child Pornography VideosRead the Press Release
McALLEN, Texas – A 29-year old resident of McAllen has entered a guilty plea to one count of receipt of child pornography, announced Acting U.S. Attorney Abe Martinez.
Rodrigo Garcia-Fuentes came to the attention of law enforcement following an investigation which began Feb. 12, 2016, into persons using the Internet to traffic in child pornography. A special agent with Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) was able to locate and identify a computer as offering to participate in the receipt of child pornography videos through a peer-to-peer network on the Internet. Through the investigation, it was determined that the computer was located at a residence in McAllen.
On July 29, 2016, HSI agents executed a federal search warrant at the McAllen residence, during which time they seized a computer. A forensic examination on the computer revealed 218 videos and 730 images of child pornography involving minor children engaged in sexually explicit conduct. These videos included children under the age of 12 involved in sadistic conduct and other depictions of violence. Some of the videos are of known victims as identified through the National Center for Missing and Exploited Children.
Garcia-Fuentes admitted he downloaded and viewed child pornography from the Internet, thereby receiving the child pornography found on his computer. He admitted he had been downloading child pornography for approximately four years.
U.S. District Judge Randy Crane accepted the guilty plea and set sentencing for Aug. 15, 2017. At that time, Garcia-Fuentes faces a minimum of five and up to 20 years in federal prison and a possible $250,000 fine. He will remain in custody pending that hearing.
HSI conducted the investigation.
This case, prosecuted by Assistant U.S. Attorney David Paxton, 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."
Medicare Fraudster Given Maximum Prison SentenceRead the Press Release
HOUSTON – A Houston woman and a California man have been ordered to federal prison for conspiring to defraud Medicare through so-called diagnostic testing labs in the Houston area, announced Acting U.S. Attorney Abe Martinez. Zaven “George” Sarkisian, 55, of Fresno, California, and Konna Hanks, 48, of Houston, pleaded guilty Dec. 9 and 2, 2015, respectively.
Today, U.S. District Judge Keith P. Ellison ordered Sarkisian to the serve the statutory maximum of 10 years in prison. In handing down the sentence, Judge Ellison imposed enhancements for obstruction of Medicare’s administrative investigation, leadership role, abuse of Medicare’s trust, sophisticated means and loss to a federal health care program of more than $1 million. The court noted Sarkisian’s conspiracy was plotted over a long period of time and was “extremely serious.” For her role, Hanks will serve a total of 37 months in prison. As part of their pleas, Sarkisian and Hanks acknowledged they caused actual losses in the amounts of $4,412,944 and $2,569,530, respectively. Both defendants were also ordered to pay full restitution to Medicare.
“The sentence imposed today demonstrates the gravity of Sarkisian’s actions,” said Martinez. “He created an elaborate scheme and used others to bilk millions out of Medicare even after they attempted to cut his federal funding.”
From 2012 to August 2014, Sarkisian formed 11 diagnostic testing “clinics” that the conspirators used to fraudulently bill Medicare for services and diagnostic tests that were not actually performed or were medically unnecessary. Hanks worked with Sarkisian at seven of the clinics and recruited and paid Medicare beneficiaries to attend his clinics.
Marketers such as Hanks paid Medicare beneficiaries to attend the clinics so they could use their Medicare numbers to fraudulently bill Medicare. Sarkisian paid these marketers $80 to $100 cash, knowing they would keep part of this fee and pay the rest to the beneficiary.
Sarkisian told co-conspirators to order ultrasounds, allergy tests and pulmonary function tests for each beneficiary, regardless of circumstances. He also instructed others to ensure every beneficiary had poor circulation, shortness of breath, heart problems and allergies written in their chart.
Medicare eventually put Sarkisian’s first clinic on pre-payment review, thus drastically slowing down the flow of Medicare payments. He then recruited others to form new clinics and to open bank accounts in their names even though Sarkisian would actually be the owner of the clinics and who received proceeds.
Sarkisian was taken into custody following the sentencing today where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. Hanks had been previously on bond but was later ordered into custody for violating her conditions of release.
Two others - Darryl Johnson, 33, of Richmond, and Hmyak “Hamlet” Samsonyan, 47, of Katy, also pleaded guilty and are awaiting sentencing.
The FBI Health Care Fraud Task Force, Texas Attorney General’s Medicaid Fraud Control Unit and the Department of Health and Human Services - Office of Inspector General, Office of Investigations conducted the investigation. Assistant U.S. Attorneys Michael Chu and Jason Smith are prosecuting the case.
McAllen Federal Jury Returns Guilty Verdict in Second Chance Lending SchemeRead the Press Release
McALLEN, Texas – Two men have been convicted for their roles in a “second chance” mortgage lending scheme, announced Acting U.S. Attorney Abe Martinez. A federal jury convicted Luis Antonio Rodriguez, 36, of Mission, and Rogelio Ramos Jr., 36, of Pharr, of conspiracy to commit wire fraud late Friday, May 26, following a seven-day-trial and approximately nine hours of deliberation.
A third defendant - Guadalupe Artemio Gomez, 31, of Mission - pleaded guilty before trial and testified against both Rodriguez and Ramos.
All three were accused of operating a “second chance” financing business under the names of T.G. and Wealth, Infinite Properties and Me In 3D, focusing on individuals who were financially unable to apply for traditional home financing. The investigation revealed Gomez, Rodriguez and Ramos conducted business in McAllen, Mission, Edinburg, Houston and San Antonio by hiring recruiters to funnel prospective home buyers to Infinite Properties. The homebuyers then gave 10 percent of the purchase price as a down payment to Infinite Properties.
During trial, the jury heard from victims, law enforcement and an FBI forensic accountant who testified that instead of using the down payments as intended, the money was used for personal expenses, trips to Las Vegas and to purchase other real estate.
The defense claimed they had no intent to defraud the victims because they had attempted to get a $10 million loan. The jury was not convinced and found both men guilty as charged.
Rodriguez and Ramos defrauded 106 people out of more than $1.8 million in down payments.
Anyone who believes they may be a victim of fraud in relation to this investigation or any other similar crime may contact the FBI at 210-225-6741.
U.S. District Judge Randy Crane presided over the trial and set Rodriguez and Ramos for sentencing on Aug. 8, 2017. Gomez will be sentenced July 25, 2017. All face up face up to up to 30 years in federal prison and a possible $1 million fine.
The FBI and police departments in McAllen, Mission and Edinburg conducted the investigation. Assistant U.S. Attorneys Robert L. Guerra Jr. and Andrew Swartz prosecuted the case.
Former Mexican State of Tabasco Secretary of Finance Indicted in Money Laundering Scheme with Wife and Business AssociateRead the Press Release
CORPUS CHRISTI, Texas – An indictment charging the former Tabasco, Mexico, Secretary of Finance has been unsealed following the arrest of his wife in the Houston area, announced Acting U.S. Attorney Abe Martinez. Jose Manuel Saiz-Pineda, 49, served as the Secretary of Finance of the Mexican State of Tabasco from 2007 to 2012 under former Governor Andres Granier Melo.
A federal grand jury in Corpus Christi returned a sealed indictment against him on April 26, 2017. Authorities arrested his wife - Silvia Beatriz Perez-Ceballos, 49, at her residence in Sugar Land on Wednesday, May 24, after which the indictment was unsealed. Also charged is Saiz-Pineda’s business associate in Mexico and the United States, Martin Alberto Medina-Sonda, 44. All are charged with conspiring to launder monetary instruments and conspiracy to commit bank fraud.
Perez-Ceballos made her initial appearance yesterday in federal court in Houston before U.S. Magistrate Judge Dena Palermo who temporarily ordered her into custody pending a detention hearing set for May 30, 2017, at 2:00 p.m.
Saiz-Pineda is currently in custody in Tabasco on related charges of illegal enrichment. Medina-Sonda is also in custody in Mexico.
The indictment includes a notice of criminal forfeiture regarding seven real properties located in New York City, New York; Los Angeles, California; Miami, Florida; and Houston which have an estimated combined value of more than $50 million. The notice of forfeiture also lists six separate bank accounts, including one held in an offshore account in Bermuda.
The United States intends to seek a personal money judgment from the defendants in the amount of $50 million, according to the indictment.
Conspiracy to commit bank fraud carries a maximum penalty of 30 years in federal prison and up to a $1 million possible fine. If convicted of the money laundering conspiracy, each also faces up to 20 years in federal prison and a possible $500,000 maximum fine, twice the value of the monetary instrument or funds involved in the transactions or both.
The charges are the result of an Organized Crime Drug Enforcement Task Force investigation in Houston and Corpus Christi. The Drug Enforcement Administration, Internal Revenue Service - Criminal Investigation, sheriff’s offices in Fort Bend and Harris Counties and U.S. Marshals Service all conducted the investigation. Officials with the State of Tabasco traveled to Houston to confer with the investigative team.
Assistant U.S. Attorney Assistant Julie Hampton 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.
Houston-Area Psychiatrist Convicted of Health Care Fraud for Role in $158 Million Medicare Fraud SchemeRead the Press Release
A federal jury convicted a Houston-area psychiatrist today for his role in a $158 million Medicare fraud scheme.
Acting Assitant 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, Special Agent in Charge D. Richard Goss of Internal Revenue Service-Criminal Investigation’s (IRS-CI) Houston Field Office, Special Agent in Charge Kristin Osswald of the Railroad Retirement Board Office of Inspector General’s (RRB-OIG) Chicago Regional Office and the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU) made the announcement.
After a five-day trial, Riaz Mazcuri, 65, of Harris County, Texas, was convicted of one count of conspiracy to commit health care fraud and five counts of health care fraud. Sentencing has been scheduled for Oct. 10, 2017, before U.S. District Judge Vanessa D. Gilmore of the Southern District of Texas, who presided over the trial.
According to evidence presented at trial, from 2006 until February 2012, Mazcuri and others engaged in a scheme to defraud Medicare by submitting to Medicare, through Riverside General Hospital (Riverside), approximately $158 million in false and fraudulent claims for partial hospitalization program (PHP) services. A PHP is a form of intensive outpatient treatment for severe mental illness.
The evidence presented at trial showed that Mazcuri participated in a scheme by which Riverside paid bribes and kickbacks to group home owners and nursing home employees in exchange for sending Medicare patients to Riverside’s PHPs. Mazcuri indiscriminately admitted and readmitted these patients into these intensive psychiatric programs – often for years on end – many of whom suffered from severe Alzheimer’s or dementia and were unable to participate in the treatment purportedly provided at the PHPs, and who therefore did not qualify for the services, the evidence showed.
In addition, evidence presented at trial showed that Mazcuri rarely saw patients and that he visited the PHPs briefly every week or so to sign documents and briefly see patients. Additionally, Mazcuri falsified medical records and signed false documents purporting to show that patients admitted to the PHPs qualified and required the intensive psychiatric services, the evidence showed. Evidence also showed that Riverside did not actually provide the intensive, psychiatric treatment that a PHP is supposed to provide and falsified documentation to make it appear to Medicare that intensive treatment was being provided to qualifying patients.
Evidence at trial demonstrated that Mazcuri personally billed Medicare for over $4.5 million for psychiatric treatment he purportedly provided to Riverside’s PHP patients. Mazcuri’s signature on patient documents enabled Riverside to bill Medicare for $55 million of the total $158 million that Riverside billed Medicare for fraudulent psychiatric services, the evidence showed.
To date, 15 others have been convicted of offenses based on their roles in the fraudulent scheme. These include Earnest Gibson III, the former president of Riverside; Earnest Gibson IV, the operator of one of Riverside’s PHP satellite locations; Regina Askew, a group home owner and patient file auditor; and Robert Crane, a patient recruiter, all of whom were convicted after a jury trial in October 2014. Earnest Gibson III was sentenced to 45 years in prison. Earnest Gibson IV was sentenced to 20 years in prison. Regina Askew was sentenced to 12 years in prison. Robert Crane has not yet been sentenced. Mohammad Khan, an assistant administrator at the hospital, who managed many of the hospital’s PHPs, pleaded guilty and was sentenced to 40 years in prison. Sharon Iglehart, a physician, was also convicted after a jury trial in August 2015. She was sentenced to 12 years in prison. Walid Hamoudi, a physician, pleaded guilty in August 2015. He was sentenced to five years in prison.
The case was investigated by the FBI, HHS-OIG, IRS-CI RRB-OIG and the MFCU, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Texas. The case is being prosecuted by Assistant Chief Ashlee McFarlane and Trial Attorneys Kevin Lowell and Aleza Remis of the Fraud Section.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 3,000 defendants who have collectively billed the Medicare program for more than $11 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Four Armed Drug Traffickers Ordered to PrisonRead the Press Release
McALLEN, Texas – The final two of four men involved in stealing 246 kilograms of marijuana, some of whom also conspired to carry and use a firearm during and in relation to that crime, have been ordered to prison, announced Acting U.S. Attorney Abe Martinez.
Mexican national Arturo Guadalupe Saldivar-Abrego, 30; Eliezer Jesus Vela, 39; of Pharr; and Luis Angel Gonzalez, 21, and Nery Gonzalez Jr., 29, both of Edinburg, pleaded guilty to one count of possession with intent to distribute a controlled substance. Saldivar-Abrego, Gonzalez and Gonzalez Jr. also pleaded to conspiracy to carry and use a firearm during and in relation to a drug offense.
Today, U.S. District Judge Randy Crane ordered Gonzalez to serve a 180-month sentence, while Gonzalez Jr. will serve 207 months in federal prison. Judge Crane previously sentenced Saldivar-Abrego and Vela to 96 and 60 months, respectively. Vela, Gonzalez and Gonzalez Jr. will also serve four years of supervised release following completion of the prison terms. Not a U.S. citizen, Saldivar-Abrego is expected to face deportation proceedings following his release from prison.
On Oct. 9, 2015, a vehicle containing approximately 246 kilograms of marijuana was traveling on expressway 83. Saldivar-Abrego, Gonzalez and Gonzalez Jr. soon approached in a second vehicle and fired gunshots at the load vehicle, forcing it to stop. They then transferred the marijuana into their vehicle. Following a pursuit, officers apprehended Saldivar-Abrego. Gonzalez and Gonzalez Jr. were arrested shortly thereafter. A subsequent investigation revealed Vela was the owner of the vehicle and that it was purchased knowing it was to be used to transport narcotics.
All will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigation along with the Bureau of Alcohol, Tobacco, Firearms and Explosives, FBI and police departments in San Juan and Alamo. Assistant U.S. Attorney Rolando Cantu and Kristen Rees prosecuted the case.
Conroe Man Sentenced for Producing Child Pornography and Possessing More Than 10,000 ImagesRead the Press Release
HOUSTON – A 59-year-old man from the Conroe area has been ordered to federal prison following his conviction of sexual exploitation of a child as well as distribution and possession of child pornography, announced Acting U.S. Attorney Abe Martinez. Robert Neal Hatchell pleaded guilty Dec. 19, 2016, admitting he took sexually-explicit photographs and a video of minor relatives and possessed more than 10,000 pornographic images.
Today, U.S. District Judge Lynn N. Hughes handed Hatchell sentences of 15 years each for the production and distribution charges as well as 10 years for possession child pornography. The sentences will run concurrently. He was further ordered to pay a $10,000 fine and will serve 10 years of supervised release following completion of the prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. He will also be ordered to register as a sex offender.
Hatchell first came to the attention of authorities as part of a nationwide investigation into the online sexual exploitation of children. Hatchell, who was identified online as “kiddycat,” had posted images of child pornography on a known child pornography website. During the execution of a search warrant at Hatchell’s residence, law enforcement discovered that he produced pornographic images and videos of two minor relatives. Hatchell had 26 images and videos of those minors as well as 1515 videos and 10,873 images containing child pornography.
At the time of his plea, Hatchell admitted to taking sexually explicit photographs and a video of the minors. He further distributed these images to others who share his sexual interest in children.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation.
This case, prosecuted by Assistant U.S. Attorney Sherri L. Zack, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Alien Smugglers Get Hefty Sentences for Smuggling Venture that Led to DeathRead the Press Release
BROWNSVILLE, Texas – A 38-year-old undocumented alien from Oaxaca, Mexico, who had been living in Brownsville has been ordered to prison on immigration charges that led to a death of a woman, announced Acting U.S. Attorney Abe Martinez. A Brownsville federal jury convicted Galdino Jose Ruiz-Hernandez Jan. 11, 2017, after a two-day trial.
Today, U.S. District Judge Hilda Tagle, who presided over the trial, handed Ruiz-Hernandez an 80-month sentence for human smuggling and a 24-month sentence for his illegally re-entering the county. Not a U.S. citizen, he is expected to face deportation proceedings following his release from prison.
Evidence presented at the trial showed that on April 24, 2015, Ruiz-Hernandez reported to Port of Brownsville authorities that a “friend” told him he saw a female body floating in the Brownsville ship channel. Law enforcement located the body and noticed injuries. Ruiz-Hernandez was initially arrested for illegally re-entering the U.S. after having been previously deported and later charged with alien smuggling as well.
Investigators learned Ruiz-Hernandez had actually been guiding the female illegal alien at midnight in the water across the ship channel when they were struck by a Coast Guard boat. Evidence presented at trial showed he guided her on behalf of Gabriel Sanchez-Aburto, 46, who had taken him to Mexico to pick up the woman. Ruiz-Hernandez and the victim entered the U.S. illegally, walked to the Port of Brownsville ship channel and began crossing the water in darkness. While in the water, a Coast Guard boat struck them. The autopsy revealed the boat’s propeller caused the injuries that resulted in her death.
At the hearing today, additional evidence was presented including that Ruiz-Hernandez had tried to convince another individual to testify falsely that the Coast Guard boat intentionally struck female alien he was transporting.
As part of the investigation, agents with Immigrations and Customs Enforcement’s Homeland Security Investigation (HSI) arrested Sanchez-Aburto on a warrant for the alien smuggling death incident on Oct. 27, 2015. He and others were in the process of smuggling other aliens at the time. Authorities found and detained seven undocumented aliens and arrested three brothers - Lazaro Comunidad-Hernandez, 48, Pablo Comunidad-Hernandez, 25, and Luciano Comunidad-Hernandez, 39, all from Puebla, Mexico.
The brothers were sentenced last year to terms from 10-15 months and are expected to face deportation proceedings following their release from prison.
Sanchez-Aburto entered a guilty plea to both alien smuggling charges and was also sentenced today to a total of 87 months imprisonment. Additionally, Judge Tagle ordered restitution of $6,000 for expenses incurred following the death of the alien.
Ruiz-Hernandez and Sanchez-Aburto will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Woman Convicted of Unlawfully Obtaining Citizenship Through Sham Marriage in HoustonRead the Press Release
HOUSTON – A Louisville, Kentucky, resident has admitted she unlawfully obtained citizenship by entering into a sham marriage with a Houston man, announced Acting U.S. Attorney Abe Martinez.
Nigerian native Euphemia Chinyeaka Okeke, 41, admitted to marrying a Houston resident and U.S. citizen while in Nigeria. She then applied for an immigrant visa and alien registration based on that marriage, claiming her permanent residence would be Houston.
However, shortly after she arrived in the United States, Okeke conceived a child and lived in Louisville with Kenneth Okeke, a Nigerian citizen with no legal status to reside in the United States. Mr. and Mrs. Okeke have since lived in Louisville and have two children together there.
In her application for naturalization, however, she testified under oath and penalty of perjury that since arriving in this country, she continuously lived in Houston with her purported husband and no one else, had not lived in any other place in the United States and had no children. She became a naturalized citizen on Sept. 14, 2011.
Less than a month later, Euphemia Okeke filed for divorce. She married Kenneth Okeke two weeks later and filed a petition for alien relative in an attempt to obtain lawful immigration status for him. In that petition, she stated under oath and penalty of perjury that she was divorced two years before she actually was and that she had lived and worked in Louisville since arriving in the United States.
U.S. District Judge Melinda Harmon accepted the plea and has set sentencing for Aug. 4, 2017. At that time, Euphemia Okeke faces up to 10 years in federal prison and possible revocation of her citizenship.
Kenneth Okeke is currently in deportation proceedings.
U.S. Citizenship and Immigration Services conducted the investigation. Assistant U.S. Attorney Adam Goldman is prosecuting the case.
Youth Organizer Charged with Production of Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – A teen mentor and founder of a nonprofit youth organization has been charged in a federal criminal complaint for sexual exploitation of a child, otherwise known as production of child pornography, announced Acting U.S. Attorney Abe Martinez.
Kevin Ray McMillan, 37, of Corpus Christi, is a teen mentor with the Boys and Girls Club of Corpus Christi and founder of Texas Youth Entrepreneurs, which is a nonprofit youth organization that mentors aspiring young future business owners, according to the charges.
He was taken into custody last night as he was traveling to allegedly engage in sexual activity with a minor. A federal criminal complaint was filed this afternoon. He is expected to make his initial appearance before U.S. Magistrate B. Janice Ellington at 2:00 p.m. tomorrow.
The charges allege McMillan had been sending sexually-explicit text messages via cellular telephone to a juvenile female. According to information in the complaint, McMillan also engaged in sexual activity with the young girl which was photographed via cellular telephone.
If convicted, he faces a minimum of 15 and up to 30 years in federal prison as well as a possible $250,000 fine.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of the Corpus Christi Police Department - Internet Crimes Against Children Task Force.
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.
Fourth Defendant Pleads Guilty for Role in Multimillion Dollar India-Based Call Center Scam Targeting U.S. VictimsRead the Press Release
An Alabama woman pleaded guilty today to one count of conspiracy to commit money laundering for her role in liquidating and laundering victim payments generated through various telephone fraud and money laundering schemes via India-based call centers.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Abe Martinez of the Southern District of Texas, Executive Associate Director Peter T. Edge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Inspector General J. Russell George of the U.S. Treasury Inspector General for Tax Administration (TIGTA) and Inspector General John Roth of the U.S. Department of Homeland Security Office of Inspector General (DHS-OIG) made the announcement.
Nilam Parikh, 46, a resident of Pelham, Alabama, pleaded guilty before U.S. District Court Judge David Hittner of the Southern District of Texas. Sentencing is scheduled for Aug. 11, 2017.
According to admissions made in connection with the plea, Parikh and her co-conspirators perpetrated a complex scheme in which individuals from call centers located in Ahmedabad, India, impersonated officials from the IRS or U.S. Citizenship and Immigration Services (USCIS) in a ruse designed to defraud victims located throughout the United States. Using information obtained from data brokers and other sources, call center operators targeted U.S. victims who were threatened with arrest, imprisonment, fines or deportation if they did not pay alleged monies owed to the government. Victims who agreed to pay the scammers were instructed how to provide payment, including by purchasing stored value cards or wiring money. Upon payment, the call centers would immediately turn to a network of "runners" based in the U.S. to liquidate and launder the fraudulently-obtained funds.
Since around December 2013, Parikh worked as a runner operating in Alabama. In connection with her plea, Parikh admitted that, at the direction of an India-based co-conspirator, often via electronic WhatsApp text communications, Parikh purchased reloadable cards registered with misappropriated personal identifying information of U.S. citizens. Once victim scam proceeds were loaded onto those cards, Parikh admitted that she liquidated the proceeds on the cards and transferred the funds into money orders for deposit into various bank accounts, while keeping part of the victim funds for herself as payment. Parikh also admitted to sending and receiving scam proceeds to and from her co-conspirators via Federal Express.
To date, Parikh, 55 other individuals and five India-based call centers have been charged for their roles in the fraud and money laundering scheme in an indictment returned by a federal grand jury in the Southern District of Texas on Oct. 19, 2016. Parikh is the fourth defendant thus far to plead guilty in this case. Co-defendants Bharatkumar Patel, Ashvinbhai Chaudhari and Harsh Patel pleaded guilty on April 13, 2017, April 26, 2017 and May 11, 2017, respectively.
The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
HSI, DHS-OIG and TIGTA led the investigation of this case. Also providing significant support were: the Criminal Division’s Office of International Affairs; Ft. Bend County, Texas, Sheriff’s Office; police departments in Hoffman Estates and Naperville, Illinois, and Leonia, New Jersey; San Diego County District Attorney’s Office Family Protection and Elder Abuse Unit; U.S. Secret Service; U.S. Small Business Administration, Office of Inspector General; IOC-2; INTERPOL Washington; USCIS; U.S. State Department’s Diplomatic Security Service; and U.S. Attorneys’ Offices in Northern District of Alabama, District of Arizona, Central District of California, Northern District of California, District of Colorado, Northern District of Florida, Middle District of Florida, Northern District of Illinois, Northern District of Indiana, District of Nevada and District of New Jersey. The Federal Communications Commission’s Enforcement Bureau also provided assistance in TIGTA’s investigation.
Senior Trial Attorney Michael Sheckels and Trial Attorney Mona Sahaf of the Criminal Division’s Human Rights and Special Prosecutions Section, Trial Attorney Robert Stapleton of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorneys S. Mark McIntyre and Craig M. Feazel of the Southern District of Texas are prosecuting the case.
A Department of Justice website has been established to provide information about the case to already identified and potential victims and the public. Anyone who believes they may be a victim of fraud or identity theft in relation to this investigation or other telefraud scam phone calls may contact the Federal Trade Commission (FTC) via this website.
Anyone who wants additional information about telefraud scams generally, or preventing identity theft or fraudulent use of their identity information, may obtain helpful information on the IRS tax scams website, the FTC phone scam website and the FTC identity theft website.
Fourth Defendant Pleads Guilty for Role in Multimillion Dollar India-Based Call Center Scam Targeting U.S. VictimsRead the Press Release
HOUSTON – An Alabama woman pleaded guilty today to one count of conspiracy to commit money laundering for her role in liquidating and laundering victim payments generated through various telephone fraud and money laundering schemes via India-based call centers.
Acting U.S. Attorney Abe Martinez of the Southern District of Texas, Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Executive Associate Director Peter T. Edge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Inspector General J. Russell George of the U.S. Treasury Inspector General for Tax Administration (TIGTA) and Inspector General John Roth of the U.S. Department of Homeland Security Office of Inspector General (DHS-OIG) made the announcement.
Nilam Parikh, 46, a resident of Pelham, Alabama, pleaded guilty before U.S. District Court Judge David Hittner of the Southern District of Texas. Sentencing is set for Aug. 11, 2017.
According to admissions made in connection with the plea, Parikh and her co-conspirators perpetrated a complex scheme in which individuals from call centers located in Ahmedabad, India, impersonated officials from the IRS or U.S. Citizenship and Immigration Services (USCIS) in a ruse designed to defraud victims located throughout the United States. Using information obtained from data brokers and other sources, call center operators targeted U.S. victims who were threatened with arrest, imprisonment, fines or deportation if they did not pay alleged monies owed to the government. Victims who agreed to pay the scammers were instructed how to provide payment, including by purchasing stored value cards or wiring money. Upon payment, the call centers would immediately turn to a network of “runners” based in the U.S. to liquidate and launder the fraudulently-obtained funds.
Since around December 2013, Parikh worked as a runner operating in Alabama. In connection with her plea, Parikh admitted that, at the direction of an India-based co-conspirator, often via electronic WhatsApp text communications, Parikh purchased reloadable cards registered with misappropriated personal identifying information of U.S. citizens. Once victim scam proceeds were loaded onto those cards, Parikh admitted that she liquidated the proceeds on the cards and transferred the funds into money orders for deposit into various bank accounts, while keeping part of the victim funds for herself as payment. Parikh also admitted to sending and receiving scam proceeds to and from her co-conspirators via Federal Express.
To date, Parikh, 55 other individuals and five India-based call centers have been charged for their roles in the fraud and money laundering scheme in an indictment returned by a federal grand jury in the Southern District of Texas on Oct. 19, 2016. Parikh is the fourth defendant thus far to plead guilty in this case. Co-defendants Bharatkumar Patel, Ashvinbhai Chaudhari and Harsh Patel pleaded guilty on April 13, 2017, April 26, 2017 and May 11, 2017, respectively.
The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
HSI, DHS-OIG and TIGTA led the investigation of this case. Also providing significant support were: the Criminal Division’s Office of International Affairs; Ft. Bend County Sheriff’s Office; police departments in Hoffman Estates and Naperville, Illinois, and Leonia, New Jersey; San Diego County District Attorney’s Office Family Protection and Elder Abuse Unit; U.S. Secret Service; U.S. Small Business Administration, Office of Inspector General; IOC-2; INTERPOL Washington; USCIS; U.S. State Department’s Diplomatic Security Service; and U.S. Attorneys’ Offices in Northern District of Alabama, District of Arizona, Central District of California, Northern District of California, District of Colorado, Northern District of Florida, Middle District of Florida, Northern District of Illinois, Northern District of Indiana, District of Nevada and District of New Jersey. The Federal Communications Commission’s Enforcement Bureau also provided assistance in TIGTA’s investigation.
Assistant U.S. Attorneys S. Mark McIntyre and Craig M. Feazel of the Southern District of Texas, Senior Trial Attorney Michael Sheckels and Trial Attorney Mona Sahaf of the Criminal Division’s Human Rights and Special Prosecutions Section and Trial Attorney Robert Stapleton of the Criminal Division’s Money Laundering and Asset Recovery Section are prosecuting the case.
A Department of Justice website has been established to provide information about the case to already identified and potential victims and the public. Anyone who believes they may be a victim of fraud or identity theft in relation to this investigation or other telefraud scam phone calls may contact the Federal Trade Commission (FTC) via this website.
Anyone who wants additional information about telefraud scams generally, or preventing identity theft or fraudulent use of their identity information, may obtain helpful information on the IRS tax scams website, the FTC phone scam website and the FTC identity theft website.
Young Alien Smuggler Who Injured Several People in High-Speed Chase Sent to PrisonRead the Press Release
LAREDO, Texas – A Rio Bravo man has been ordered to federal prison after he led police on a high-speed chase in a vehicle loaded with several illegal aliens before crashing into another vehicle and causing serious injuries to several Laredo residents, announced Acting U.S. Attorney Abe Martinez and Special Agent in Charge of Immigration and Customs Enforcement's Homeland Security Investigations (HSI) San Antonio Field Office. Jovanni Rodarte, 20, pleaded guilty Dec. 8, 2016, admitting to conspiring to transport unlawful aliens and causing serious bodily injury.
Today, U.S. District Judge Marina Garcia Marmolejo sentenced Rodarte to 97 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the court heard that Rodarte has been involved in gang violence while incarcerated and has had multiple encounters with law enforcement as a result of smuggling aliens. The government also described the incredible injuries that Rodarte inflicted on multiple innocent people. The court also heard from a victim’s wife who described the tremendous pain her husband has endured since the crash and the toll the crash has taken on her entire family. In handing down the sentence, Judge Marmolejo noted that she would be “entirely justified” in imposing the maximum under law. She added that despite given multiple opportunities, Rodarte had done nothing good with his life, but had instead immeasurably impacted multiple innocent peoples’ lives, including a mother and her son. Rodarte was also ordered to pay $192,997.20 in restitution to the victims.
"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."
On Oct. 5, 2016, Rodarte was transporting two illegal aliens when a Webb County Sheriff’s Officer attempted to affect a traffic stop. Instead of pulling over, Rodarte led several officers on a chase through the El Cenizo neighborhood of Laredo. During the chase, Rodarte drove more than 100 miles-per-hour in the residential area.
He crashed into a school fence and into a vehicle containing three Laredo residents, including a mother and son who were returning from a medical appointment. Law enforcement performed first-aid at the scene, but several of the vehicles’ occupants needed to be air-lifted to hospitals in Laredo and San Antonio. The three occupants in the vehicle Rodarte struck all sustained serious injuries that will require years of ongoing treatment.
One of the aliens was thrown from the vehicle Rodarte was driving and also sustained injuries. Rodarte, however, avoided any serious injuries from the crash.
He has been and remains in federal custody.
HSI conducted the investigation with the assistance of the U.S. Border Patrol. Assistant U.S. Attorney Chris Howard is prosecuting the case.
Under Agreement with United States and State of Texas, Vopak to Reduce Hazardous Air Pollution at Chemical Storage Facility in Deer Park, TexasRead the Press Release
The Department of Justice, the U.S. Environmental Protection Agency (EPA) and the Texas Commission on Environmental Quality today announced an agreement with Vopak Terminal Deer Park Inc. and Vopak Logistics Services USA, Inc., that will improve air quality in the Houston area by strengthening air pollution controls and compliance with federal and state clean air laws at Vopak’s chemical storage terminal and wastewater treatment facility in Deer Park, Texas.
“Today’s settlement reflects the Justice Department’s commitment to protecting clean air for the American people in partnership with the states,” said Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department’s Environment and Natural Resources Division. “The settlement will bring Vopak into compliance with federal and state clean air laws and will result in improved air quality for the residents of Harris County. We are proud to have partnered with Texas on this important result.”
“This agreement means cleaner air for Houston and will improve Vopak’s compliance with important federal and state laws,” said Acting Assistant Administrator Larry Starfield for EPA’s Office of Enforcement and Compliance Assurance. “EPA is committed to working with state partners like Texas to achieve and ensure monitoring of compliance with environmental laws.”
Under today’s agreement, which resolves alleged Clean Air Act violations at the Deer Park facility, Vopak will install state-of-the-art air pollution controls at the facility’s wastewater treatment system, and will use infrared cameras to detect harmful air pollution from the facility’s chemical storage tanks that would otherwise be invisible to the naked eye. The company will also hire a third party auditor to improve how Vopak manages waste and evaluate its compliance with the agreement.
When fully operational, these measures will significantly cut emissions of volatile organic compounds (VOCs) and hazardous air pollutants at Vopak’s bulk chemical storage terminal and wastewater treatment facility.
Vopak’s Deer Park facility is in Harris County, Texas, an area that is classified as non-attainment for ozone.
EPA, the Justice Department and the State of Texas alleged that Vopak failed to comply with Clean Air Act requirements to properly manage equipment, which resulted in excess emissions of acetone, benzene, styrene and VOCs at an on-site wastewater treatment system. The federal government and Texas also alleged that Vopak failed to operate flares and chemical storage tanks in accordance with good air pollution practices, as required by state and federal law.
Ground level ozone is not emitted directly into the air, but is created by chemical reactions between oxides of nitrogen (NOx) and VOCs in the presence of sunlight. Emissions from industrial facilities and electric utilities, motor vehicle exhaust, gasoline vapors and chemical solvents are some of the major sources of NOx and VOCs. Excessive levels of VOCs, hazardous air pollutants, and ozone can cause harmful effects to public health, particularly children and the elderly, including eye, nose and throat irritation, headaches, loss of coordination, nausea and damage to liver, kidney and the central nervous system.
As part of today’s agreement, Vopak will also pay a civil penalty of $2.5 million, split between the U.S. and the State of Texas.
Today’s agreement, a consent decree formalizing the settlement, was lodged with the U.S. District Court in the Southern District of Texas and is subject to a 30-day public comment period and final court approval. Information on how to comment on the consent decree will be available in the Federal Register and on the Department of Justice’s website:www.justice.gov/enrd/consent-decrees.
For more information on this settlement or for a copy of the consent decree, visit www.epa.gov/enforcement/vopak-north-america-inc-clean-air-act-settlement-agreement
Vitamin Shop Owner Guilty of Selling Misbranded Drugs and Controlled SubstanceRead the Press Release
CORPUS CHRISTI, Texas – A 33-year-old resident of Corpus Christi has pleaded guilty to possessing a controlled Substance with the intent to distribute and one count of receiving a misbranded drug in interstate commerce, announced Acting U.S. Attorney Abe Martinez.
Elias Trevino Jr. was one of the owners of X2Zero, a store selling dietary supplements online and through stores located in Corpus Christi. The Food and Drug Administration (FDA) determined a number of products sold there as “herbal weight loss supplements” were found to contain misbranded or unapproved foreign drugs.
In 1997, the (FDA) approved a prescription drug containing sibutramine under the trade name Meridia for the management of obesity. In October 2010, the FDA requested the Meridia marketer to withdraw the drug from the United States market due to the health risks associated with sibutramine, including an increased risk of heart attack, stroke and death. On Dec. 21, 2010, at the request of the manufacturer, the FDA withdrew its approval of Meridia. Since that time, no drug containing sibutramine has been approved for human use in the United States.
At today’s hearing before Senior U.S. District Judge John D. Rainey, Trevino admitted he knowingly possessed and sold diet drugs containing sibutramine. He acknowledged that he imported the drugs from China and sold them through both the X2Zero store in Corpus Christi and on the Internet in violation of the federal Food, Drug and Cosmetic Act.
Sentencing has been set for Aug. 14, 2017, 2017. At that time, Trevino faces up to five years in federal prison and a possible $250,000 maximum fine for the controlled substance violation as well as one year in prison and an additional $100,000 maximum fine for violating the Food, Drug, and Cosmetic Act.
He was permitted to remain on bond pending that hearing.
The FDA - Office of Criminal Investigations conducted the investigation. Assistant U.S. Attorney Robert D. Thorpe Jr. is prosecuting the case.
Two Alien Smugglers Head to Federal PrisonRead the Press Release
CORPUS CHRISTI, Texas – Two Alvin residents have been ordered to prison for their involvement in transporting undocumented immigrants, announced Acting U.S. Attorney Abe Martinez.
Sarah Lynn Reyes, 23, and Martin Thomas Contreras, 25, pleaded guilty Feb. 21, 2017, to transporting an alien in reckless disregard of his citizenship. Reyes also admitted to fleeing a Customs and Border Protection (CBP) checkpoint.
Today, U.S. District Judge John Rainey handed both defendants an 18-month sentence. He expressed his hope that the sentence will serve as a deterrent to others who may be thinking about transporting undocumented immigrants. Both will also be required to serve a term of two years of supervised release following completion of their prison terms.
On Dec. 21, 2016, both arrived at the CBP checkpoint on Texas Hwy 77 south of Santa driving a four-door Chevrolet Silverado pickup truck with their three young children in the back seat. Reyes was driving and Contreras was located in the front passenger seat. Officers observed a large lump on the backseat floorboard covered with a blanket. At that time, a canine service agent alerted to the vehicle, which prompted them to refer the vehicle to the secondary inspection area.
Reyes did not comply and accelerated away. A chase ensued for approximately 75 miles, during which time Reyes drove at speeds of up to 100 miles per hour disregarding stop signs and red lights. She was eventually apprehended in Corpus Christi. At that time, authorities discovered an undocumented immigrant from Mexico laying under the blanket on the floorboard where the children were seated.
At the hearing today, Judge Rainey noted that the driving conduct was extremely dangerous to the young children in the car, other motorists and law enforcement and that it was one of the longest high-speed chases he has seen.
The defendants were permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
U.S. Border Patrol conducted the investigation. Assistant Attorney Jon Muschenheim prosecuted the case.
Three Laredo Men Convicted of Trafficking DrugsRead the Press Release
LAREDO, Texas – Three Laredo men have entered guilty pleas for their roles in a conspiracy to traffic drugs from Laredo to the Dallas area via the use of tractor trailers, announced Acting U.S. Attorney Abe Martinez.
Armando Eloy Gutierrez, 38, Javier Mota Villanueva, 33 and Leopoldo Rodriguez III, 25 entered pleas of guilty to conspiracy to posses with the intent to distribute marijuana.
In August 2013, authorities identified a drug trafficking organization responsible for the transportation and distribution of kilogram quantities of marijuana from Laredo to the Dallas area. Gutierrez was in charge of finding warehouses for the organization to use and then soliciting shipping companies to transport trailers with marijuana and cover with loads of merchandise. He would also act as a scout by following the drivers through checkpoint. Once through, he would then drive with others to the Dallas or Fort Worth area to assist in receiving and unloading the drugs.
Mota-Villanueva worked at the warehouses. He wrapped the marijuana, moved pallets and loaded the drugs onto trailers. He would also travel to Dallas along with Gutierrez.
Rodriguez was tasked with wrapping marijuana and assisting with loading of narcotics onto trailers at a warehouse.
The investigation revealed three warehouse in Laredo that the organization used at different periods from on or about September 2013 to on or about July 31, 2014. They were located on the 1800 block of Aduanales, 200 block of Corpus Christi Street and the 1600 block of West Calton. Three separate marijuana loads were seized that originated from each one of the three warehouses, totaling more than 1600 kilograms.
U.S. Magistrate Judge Scott Hacker accepted the pleas today. Sentencing will be before U.S. District Judge George P. Kazen at a date to be determined. Due to the amounts for which they are held accountable, Gutierrez and Villanueva face a minimum 10 years and up to life in federal prison. Rodriguez faces a minimum of five and up to 40 years imprisonment.
Gutierrez and Mota will remain in custody, while Rodriguez was permitted to remain on bond pending sentencing.
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.
Printing and Packaging Business Owner Convicted of Trafficking in Counterfeit Veterinary LabelsRead the Press Release
HOUSTON – A California businessman has admitted to directing the manufacture of counterfeit labels and sending them to Houston, announced Acting U.S. Attorney Abe Martinez.
Michael Chihwen Wang, 49, of Buena Park, California, was the vice president of CYU Lithographics Inc. doing business as Choice Lithographics in Buena Park. Between July 2015 and December 2016, Wang directed the manufacture of counterfeit trademarked Frontline, Frontline Plus and Merial veterinary product labels and shipped them to Houston.
Merial, Frontline and Frontline Plus are trademarks registered by Merial - an animal health company located in Duluth, Georgia, which manufactures and sells pharmaceutical drugs and pesticides for animals.
Wang intentionally caused the manufacture of counterfeit labels and packaging of copyrighted or trademarked items to make packaging appear legitimate. The labels were delivered to a warehouse as part of an undercover investigation. No actual veterinary products were involved in this case.
U.S. District Judge Kenneth M. Hoyt has set sentencing for July 24, 2017, at which time Wang faces up to 10 years in prison and/or a possible $2 million fine. Wang was permitted to remain on bond pending that hearing.
The U.S. Food and Drug Administration-Office of Criminal Investigations and the Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U. S. Attorney Daniel C. Rodriguez is prosecuting the case.
Local Woman Sentenced in Cell Phone Fraud SchemeRead the Press Release
HOUSTON – A 47-year-old Houston woman has been ordered to pay more than $2 million following her conviction of mail fraud in relation to seven-year cell phone fraud scheme, announced Acting U.S. Attorney Abe Martinez. Renee Heyd pleaded guilty Nov. 28, 2016.
Today, U.S. District Judge Kenneth Hoyt handed Heyd a 27-month sentence to be immediately followed by three years of supervised release. She was further ordered to pay $2,630,522 in restitution.
Heyd admitted she fraudulently obtained iPhones and other smartphones on her employer’s AT&T account and then mailed them to a reseller who paid her $300 to $500 per phone.
From 2009 through 2015, Heyd was employed at a Houston-based seismic equipment company where she was in charge of ordering cell phones and data lines for the company’s employees. During this time, Heyd initiated two-year contracts on the company’s AT&T account for new or existing phone lines to obtain new iPhones and other smartphones at discounted prices. She then registered the phones with fictitious names and caused the new contracts to be suspended in order to reduce the monthly service fee from an active line to a suspended line.
Heyd disguised the charges by manually altering the detail of the AT&T charges prior to review and approval by the company’s management. Between February 2009 and continuing through Oct. 15, 2015, Heyd sent 236 Federal Express shipments containing the fraudulently-obtained phones from the company in Houston to a reseller in New York. The reseller paid Heyd $300 to $500 per phone via PayPal and/or wire transfers.
Previously released on bond, Heyd was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation. Assistant U.S. Attorney Belinda Beek is prosecuting the case.
Former TSA Agent Heads to Prison for Producing and Distributing Child PornographyRead the Press Release
HOUSTON – A 29-year-old man from the North Houston area has been ordered to federal prison following his conviction of sexual exploitation of a child and distribution of child pornography, announced Acting U.S. Attorney Abe Martinez. Christopher Lynn Persky pleaded guilty May 16, 2016.
Today, U.S. District Judge Kenneth M. Hoyt handed Persky 327 and 240 months for the production and distribution convictions, respectively. The sentences will run concurrently. Additional information was also presented today, including the testimony of a victim. “They teach you as a woman to watch what you wear, to never walk alone at night, to never drink too much when you’re out,” she said. “My entire life I prepared for a stranger. I never prepared for you. You smiled and laughed, you bought me ice cream, you assaulted me.”
Persky was further ordered to pay restitution in the amount of $6500 to another identified victim and will serve the rest of his life on supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. He will also be ordered to register as a sex offender.
Persky first came to the attention of law enforcement after an individual identified online as CHRISPYTWEAK had sent images of child erotica to an undercover agent using the chat feature on a known child pornography site. That person was identified as Persky. At that time, he provided his full name and further claimed to work for Department of Homeland Security – Transportation Security Administration (TSA). He no longer works for TSA.
At the time of his plea, Persky admitted to taking sexually explicit photographs and a video of a two-year-old minor relative. He further emailed these images to another individual with whom he was communicating in exchange for more images of child pornography.
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.
This case, prosecuted by Assistant U.S. Attorney Kimberly Ann Leo, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Third Indian National Pleads Guilty for Role in Multimillion Dollar India-based Call Center Scam Targeting U.S. VictimsRead the Press Release
HOUSTON - An Indian national pleaded guilty today to one count of conspiracy to commit money laundering for his role in liquidating and laundering victim payments generated through various telephone fraud and money laundering schemes via India-based call centers.
Acting U.S. Attorney Abe Martinez of the Southern District of Texas, Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Executive Associate Director Peter T. Edge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Inspector General J. Russell George of the U.S. Treasury Inspector General for Tax Administration (TIGTA) and Inspector General John Roth of the U.S. Department of Homeland Security- Office of Inspector General (DHS-OIG) made the announcement.
Harsh Patel, 28, an Indian national who most recently resided in Piscataway, New Jersey, pleaded guilty before U.S. District Court Judge David Hittner of the Southern District of Texas. Sentencing is set for Aug. 7, 2017.
According to admissions made in connection with the plea, Patel and his co-conspirators perpetrated a complex scheme in which individuals from call centers located in Ahmedabad, India, impersonated officials from the IRS or U.S. Citizenship and Immigration Services (USCIS) in a ruse designed to defraud victims located throughout the United States. Using information obtained from data brokers and other sources, call center operators targeted U.S. victims who were threatened with arrest, imprisonment, fines or deportation if they did not pay alleged monies owed to the government. Victims who agreed to pay the scammers were instructed how to provide payment, including by purchasing stored value cards or wiring money. Upon payment, the call centers would immediately turn to a network of “runners” based in the U.S. to liquidate and launder the fraudulently-obtained funds.
According to his plea, since around January 2015, Patel worked as a runner operating primarily in New Jersey, California and Illinois. At the direction of India-based co-conspirators, often via electronic WhatsApp text communications, Patel admitted to purchasing reloadable cards registered with misappropriated personal identifying information of U.S. citizens. Once victim scam proceeds were loaded onto those cards, Patel admitted he liquidated the proceeds on the cards and transferred the funds into money orders for deposit into various bank accounts while keeping a percentage of the victim funds for himself. Patel also admitted to receiving fake identification documents from an India-based co-conspirator and other sources and using those documents to receive victim scam payments via wire transfers.
To date, Patel, 55 other individuals, and five India-based call centers have been charged for their roles in the fraud and money laundering scheme in an indictment returned by a federal grand jury in the Southern District of Texas on Oct. 19, 2016. Patel is the third defendant thus far to plead guilty in this case. Co-defendants Bharatkumar Patel, aka Bharat Patel, 43, and Ashvinbhai Chaudhari, 28, pleaded guilty on April 13, 2017, and April 26, 2017, respectively.
The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
HSI, DHS-OIG and TIGTA led the investigation of this case. Also providing significant support was the Criminal Division’s Office of International Affairs; Ft. Bend County Sheriff’s Office; police departments in Hoffman Estates and Naperville, Illinois, and Leonia, New Jersey; San Diego County District Attorney’s Office Family Protection/Elder Abuse Unit; U.S. Secret Service; U.S. Small Business Administration - Office of Inspector General; IOC-2; INTERPOL Washington; USCIS; U.S. State Department’s Diplomatic Security Service; and U.S. Attorney’s Offices in Northern District of Alabama, District of Arizona, Central District of California, Northern District of California, District of Colorado, Northern District of Florida, Middle District of Florida, Northern District of Illinois, Northern District of Indiana, District of Nevada and District of New Jersey. The Federal Communications Commission’s Enforcement Bureau also provided assistance in TIGTA’s investigation.
Assistant U.S. Attorneys S. Mark McIntyre and Craig M. Feazel of the Southern District of Texas, Senior Trial Attorney Michael Sheckels and Trial Attorney Mona Sahaf of the Criminal Division’s Human Rights and Special Prosecutions Section and Trial Attorney Robert Stapleton of the Criminal Division’s Money Laundering and Asset Recovery Section are prosecuting the case.
A Department of Justice Website has been established to provide information about the case to already identified and potential victims and the public. Anyone who believes they may be a victim of fraud or identity theft in relation to this investigation or other telefraud scam phone calls may contact the Federal Trade Commission (FTC) via this website.
Anyone who wants additional information about telefraud scams generally, or preventing identity theft or fraudulent use of their identity information, may obtain helpful information on the IRS tax scams website, the FTC phone scam website and the FTC identity theft website.
Third Indian National Pleads Guilty for Role in Multimillion Dollar India-Based Call Center Scam Targeting U.S. VictimsRead the Press Release
An Indian national pleaded guilty today to one count of conspiracy to commit money laundering for his role in liquidating and laundering victim payments generated through various telephone fraud and money laundering schemes via India-based call centers.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Abe Martinez of the Southern District of Texas, Executive Associate Director Peter T. Edge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Inspector General J. Russell George of the U.S. Treasury Inspector General for Tax Administration (TIGTA) and Inspector General John Roth of the U.S. Department of Homeland Security Office of Inspector General (DHS OIG) made the announcement.
Harsh Patel, 28, an Indian national who most recently resided in Piscataway, New Jersey, pleaded guilty before U.S. District Court Judge David Hittner of the Southern District of Texas. Sentencing is set for Aug. 7, 2017.
According to admissions made in connection with the plea, Patel and his co-conspirators perpetrated a complex scheme in which individuals from call centers located in Ahmedabad, India, impersonated officials from the IRS or U.S. Citizenship and Immigration Services (USCIS) in a ruse designed to defraud victims located throughout the United States. Using information obtained from data brokers and other sources, call center operators targeted U.S. victims who were threatened with arrest, imprisonment, fines or deportation if they did not pay alleged monies owed to the government. Victims who agreed to pay the scammers were instructed how to provide payment, including by purchasing stored value cards or wiring money. Upon payment, the call centers would immediately turn to a network of “runners” based in the U.S. to liquidate and launder the fraudulently-obtained funds.
According to his plea, since around January 2015, Patel worked as a runner operating primarily in New Jersey, California and Illinois. At the direction of India-based co-conspirators, often via electronic WhatsApp text communications, Patel admitted to purchasing reloadable cards registered with misappropriated personal identifying information of U.S. citizens. Once victim scam proceeds were loaded onto those cards, Patel admitted that he liquidated the proceeds on the cards and transferred the funds into money orders for deposit into various bank accounts while keeping a percentage of the victim funds for himself. Patel also admitted to receiving fake identification documents from an India-based co-conspirator and other sources and using those documents to receive victim scam payments via wire transfers.
To date, Patel, 55 other individuals, and five India-based call centers have been charged for their roles in the fraud and money laundering scheme in an indictment returned by a federal grand jury in the Southern District of Texas on Oct. 19, 2016. Patel is the third defendant thus far to plead guilty in this case. Co-defendants Bharatkumar Patel, aka Bharat Patel, 43, and Ashvinbhai Chaudhari, 28, pleaded guilty on April 13, 2017, and April 26, 2017, respectively.
The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
HSI, DHS OIG and TIGTA led the investigation of this case. Also providing significant support was the Criminal Division’s Office of International Affairs; Ft. Bend County, Texas, Sheriff’s Office; police departments in Hoffman Estates and Naperville, Illinois, and Leonia, New Jersey; San Diego County District Attorney’s Office Family Protection/Elder Abuse Unit; U.S. Secret Service; U.S. Small Business Administration - Office of Inspector General; IOC-2; INTERPOL Washington; U.S. Citizenship and Immigration Services USCIS; U.S. State Department’s Diplomatic Security Service; and U.S. Attorney’s Offices in Northern District of Alabama, District of Arizona, Central District of California, Northern District of California, District of Colorado, Northern District of Florida, Middle District of Florida, Northern District of Illinois, Northern District of Indiana, District of Nevada and District of New Jersey. The Federal Communications Commission’s Enforcement Bureau also provided assistance in TIGTA’s investigation.
Senior Trial Attorney Michael Sheckels and Trial Attorney Mona Sahaf of the Criminal Division’s Human Rights and Special Prosecutions Section, Trial Attorney Robert Stapleton of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorneys S. Mark McIntyre and Craig M. Feazel of the Southern District of Texas are prosecuting the case.
A Department of Justice website has been established to provide information about the case to already identified and potential victims and the public. Anyone who believes they may be a victim of fraud or identity theft in relation to this investigation or other telefraud scam phone calls may contact the Federal Trade Commission (FTC) via this website.
Anyone who wants additional information about telefraud scams generally, or preventing identity theft or fraudulent use of their identity information, may obtain helpful information on the IRS tax scams website, the FTC phone scam website and the FTC identity theft website.
Madisonville Man Charged with Illegal Possession of a FirearmRead the Press Release
HOUSTON – A Madisonville man has been taken into custody as a result of a joint effort in ensuring the safety of local communities, announced Acting U.S. Attorney Abe Martinez.
A grand jury returned an indictment against Reginald Scott, 42, for being a felon in possession of a firearm. He was taken into custody today and is expected to make his initial appearance before a U.S. magistrate judge at 10:00 a.m. in Houston.
Scott was previously convicted of a felony and is, therefore, prohibited from possessing a firearm per federal law. The indictment alleges that on March 30, 2017, he was in possession of a Springfield XD, .45 caliber pistol.
He faces up to 10 years imprisonment and a possible $250,000 maximum fine, upon conviction.
The arrest is the result of an effort among local, state and federal agencies who are partnering together to combat violent crime and to ensure the safety of Madison County. The FBI investigated the case with assistance from the Madison County District Attorney’s Office and the Madisonville Police Department.
Assistant U.S. Attorney Celia Moyer 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.Local Man Guilty in $5 Million Investment ScamRead the Press Release
HOUSTON - A 76-year-old Montgomery man has been convicted on two counts related to an investment fraud scheme involving more than 50 victims and more than $5 million, announced Acting U.S. Attorney Abe Martinez.
Allan George Cooper was president of Effective Energy Alternatives dba A.G. Cooper Associates, managing member of AG Cooper LLC and registered agent for Effective Funding Network LLC. Cooper created AG Cooper & Associates and presented himself as an investment advisor, meeting investors through a church group and through referrals from other investors. He solicited and received more than $5 million from investors, many of whom believed he was making short-term loans to small companies who could not get bank financing. He used investor funds to pay earlier investors, pay himself and his employees, and fund his lifestyle.
Cooper presented investment programs that projected more than 12% returns in a short period of time and lulled investors with misleading statements he mailed to their homes on a quarterly basis. On occasion, he would make monthly payments to investors with funds provided by new investors. Deceived by these monthly payments and fraudulent quarterly statements, investors believed their money was being properly invested, and on some occasions, would re-invest more money with Cooper.
Cooper received investor funds via wire transfers or checks handed to him in person. An analysis of his bank accounts revealed the majority of the monies were used to pay back other investors, pay his credit cards, fund his other companies and to enrich his own lifestyle.
Cooper pleaded guilty to one count each of mail and wire fraud. U.S. District Judge Melinda Harmon accepted the plea and set sentencing for Sept. 2, 2017. At that time, Cooper faces up to 20 years in prison on each count as well as a possible $250,000 maximum fine.
He will remain on bond pending that hearing.
The FBI conducted the investigation with assistance from the Texas State Securities Board. Assistant U.S. Attorney Suzanne Elmilady is prosecuting the case.
Corpus Christi Man Sentenced for Producing Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – A 29-year-old Corpus Christi man has been ordered to prison following his two convictions of sexual exploitation of a child, otherwise known as production of child pornography, announced Acting U.S. Attorney Abe Martinez. Mark Hamauei pleaded guilty Jan. 6, 2017, admitting he took sexually explicit videos of both a 13 and 14-year-old victim.
He was sentenced to 210 months on each count to run concurrently. 10 years of supervised release in each count and $1,229.08 in restitution.
Today, Senior U.S. District Judge Nelva Gonzales Ramos sentenced Hamauei to a total of 210 months in federal prison on each count to run concurrently. The sentence will be immediately by 10 years of supervised release during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. He will also be ordered to register as a sex offender and pay $1229 in restitution.
At today’s hearing, the court also heard testimony from one of the victims. She described to the court the impact the crime has had on her life and that of her family.
Hamauei came to the attention of law enforcement after identifying two young females who had been sexually assaulted. Law enforcement later executed a search warrant at Hamauei’s residence and seized various electronic devices which led to the discovery of two videos of the two girls being sexually assaulted. Hamauei’s hands were compared and matched to the hand of the person filming the video. Authorities also discovered 239 videos and more than 1,400 other images of child pornography. At the hearing today, the court heard that many of these images depicted sadistic or masochistic conduct including bondage of children as young as toddlers.
Hamauei was arrested on the federal charges in October 2016 and has been in custody since that time where he will remain pending his transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of the Corpus Christi Police Department – Internet Crimes Against Children Task Force.
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."
Two Sent to Prison for Possessing Carter’s Country Stolen GunsRead the Press Release
HOUSTON – Two Houston men found in possession of firearms stolen from Carter’s Country gun store in March 2016 have been ordered to federal prison, announced Acting U.S. Attorney Abe Martinez. Anthony D. Cannon, 21, and Tony L. Watkins, 24, pleaded guilty Sept. 2, 2016, to being felons in possession of a firearm.
Today, U.S. District Judge David Hittner ordered Cannon serve 46 months in federal prison, while Watkins received a 57-month sentence. Both men will also be required to serve three years of supervised release immediately following their release from prison. In handing down the sentence, Judge Hittner noted that both Cannon and Watkins had relatively high criminal histories despite their relative ages.
At approximately 4:30 a.m. on March 1, 2016, law enforcement responded to an alarm at the Carter’s Country gun store in Houston. Upon arrival, authorities noted the front doors had been busted open and the business had been ransacked. Numerous firearms had been stolen, including handguns, rifles and shot guns.
A truck appeared to have backed up to the front doors of the business. Store surveillance video showed an unknown individual who wrapped a chain around the doors and pulled the doors off the building. Approximately 11 suspects ran inside, broke the glass cabinets and stole 84 firearms.
Law enforcement soon discovered that some of the stolen firearms were being sold. They set up surveillance and eventually arrested both Cannon and Watkins who were found in possession of several of the stolen firearms. As convicted felons, both men are prohibited from possessing a firearm per federal law.
They have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
No one has yet been charged in the Carter’s Country robbery. The investigation is ongoing.
A joint federal task force conducted the investigation that includes the Bureau of Alcohol Tobacco, Firearms and Explosives and the FBI. Assistant U.S. Attorney Julie N. Searle is prosecuting the case.