Southern District of Texas

HOUSTON – Six individuals have been charged in a second superseding indictment for their role in a multi-million dollar securities fraud “pump-and-dump” conspiracy, announced Acting U.S. Attorney Abe Martinez.

 

The new indictment expands on the original charges which alleged a $6 million scheme involving one stock. The second superseding indictment alleges 12 stocks and more than $25 million.

 

A federal grand jury returned the original indictment Sept. 15, 2016, charging Andrew Ian Farmer, 38, and Thomas Galen Massey, 46, both of Houston, for their roles in a securities fraud scheme involving the stock of Chimera Energy Corp. A federal grand jury returned a superseding indictment April 26, 2017, charging five additional individuals for their roles in the Chimera fraud - Eddie Douglas Austin Jr., 66, Carolyn Price Austin, 62, and Charles Earl Grob Jr., 37, all of Houston; John David Brotherton, 57, of League City; and Scott Russell Sieck, 58, of Winter Park, Florida.

 

Today, a grand jury returned a second superseding indictment against Farmer, Eddie and Carolyn Austin, Brotherton, Sieck and Grob for their role in a broader securities fraud conspiracy involving the stock of at least 12 different companies from 2011 to 2017, including Chimera.

 

In a typical “pump-and-dump” fraud scheme, the perpetrators engage in fraudulent trading practices in a company’s stock and publish false and misleading information about the company, all in order to fraudulently inflate the price of the stock. The perpetrators then sell the stock to unwitting investors at the inflated prices.

 

According to the charges in this case, the conspiracy involved a scheme to defraud investors in numerous companies by engaging in fraudulent trading practices, evading Securities and Exchange Commission (SEC) reporting requirements and publishing false and misleading information through press releases and advertisements about the companies. As a result of the scheme, the defendants allegedly defrauded investors that purchased shares of these companies out of more than $25 million.

 

Conspiracy to commit wire fraud and wire fraud each carry a possible term of imprisonment of up to 20 years in federal prison and a possible $250,000 fine.

 

Massey pleaded guilty to his role on April 18, 2017, and is set for sentencing June 4, 2018. The remaining defendants are presumed innocent unless convicted through due process of law.

 

The FBI conducted the investigation with the assistance of the SEC and Financial Industry Regulatory Authority. Assistant U.S. Attorney Justin R. Martin is prosecuting the case.

LAREDO, Texas – A Laredo federal judge has sentenced a 23-year-old Florida woman for smuggling liquid methamphetamine through the local port of entry, announced Acting U.S. Attorney Abe Martinez. Alyssa Lopez, 23, of Panama City, Florida, pleaded guilty June 6, 2016, to conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute methamphetamine.

 

Today, U.S. District Judge Diana Saldaña ordered Lopez to prison for a total of 50 months. The sentence will be immediately followed by three years of supervised release.

 

On March 11, 2016, Lopez engaged in a conspiracy to smuggle 16.5 kilograms of liquid methamphetamine through the Gateway to the Americas Port of Entry International Bridge II in Laredo. Lopez was driving a blue Dodge Charger with Florida license plates. Inside, agents discovered three plastic horse shampoo bottles containing 16.5 kilograms of liquid methamphetamine.

 

She has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

 

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.

An Indian national and a Texas man each pleaded guilty to conspiracy charges this week for their respective roles in liquidating and laundering victim payments generated through a massive telephone impersonation fraud and money laundering scheme perpetrated by 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.

Montu Barot, 30, an Indian national most recently residing in Glendale Heights, Illinois, and Nilesh Pandya, 54, of Stafford, Texas, each pleaded guilty to one count of conspiracy to commit fraud and money laundering offenses, in violation of Title 18, U.S. Code, Section 371.  The pleas were entered before U.S. District Court Judge David Hittner of the Southern District of Texas.  Barot agreed to deportation following his sentence.  Sentencing dates are pending.

According to admissions made in connection with their respective pleas, Montu Barot, Nilesh Pandya, and their co-conspirators perpetrated a complex scheme in which individuals from call centers located in Ahmedabad, India, impersonated officials from the IRS and U.S. Citizenship and Immigration Services (USCIS), and engaged in other telephone call scams, in a ruse designed to defraud victims located throughout the U.S.  Using information obtained from data brokers and other sources, call center operators targeted U.S. victims who were threatened with arrest, imprisonment, fines or deportation if they did not pay alleged monies owed to the government.  Victims who agreed to pay the scammers were instructed how to provide payment, including by purchasing stored value cards or wiring money.  Upon payment, the call centers would immediately turn to a network of “runners” based in the U.S. to liquidate and launder the fraudulently-obtained funds.

According to Barot’s guilty plea, beginning in or around June 2012, Barot served as a runner and coordinated the liquidation of victim scam funds by other runners per the instructions of conspirators from both India-based call centers and within the United States.  Barot communicated via phone, text and email in furtherance of the criminal scheme with both domestic and India-based associates, and he and his conspirators used reloadable cards containing funds derived from victims by scam callers to purchase money orders and deposit them into various bank accounts as directed, in return for cash payments or commissions.  Barot also admitted to sending financial ledgers to his conspirators detailing the movement of scam victim funds.

Based on admissions in Nilesh Pandya’s guilty plea, beginning in or around March 2014, Pandya served as a runner liquidating victim scam funds within the Southern District of Texas.  At the direction of two of his co-defendants, Pandya used stored value cards that had been loaded with victim funds to buy money orders and then deposit them into various bank accounts.

To date, Montu Barot, Nilesh Pandya, 54 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. Including this week’s pleas, a total of thirteen defendants have pleaded guilty thus far in this case. Co-defendants Bharatkumar Patel, Ashvinbhai Chaudhari, Harsh Patel, Nilam Parikh, Hardik Patel, Rajubhai Patel, Viraj Patel, Dilipkumar A. Patel, Fahad Ali, Bhavesh Patel and Asmitaben Patel previously pleaded guilty on various dates between April and July 2017.

The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

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 the Middle District of Alabama, Northern District of Alabama, District of Arizona, Central District of California, Northern District of California, District of Colorado, Northern District of Florida, Middle District of Florida, Northern District of Illinois, Northern District of Indiana, District of Nevada and District of New Jersey.  The Federal Communications Commission’s Enforcement Bureau also provided assistance in TIGTA’s investigation.

Senior Trial Attorney Michael Sheckels and Trial Attorney Mona Sahaf of the Criminal Division’s Human Rights and Special Prosecutions Section, Trial Attorney Amanda Wick of the Criminal Division’s Money Laundering and Asset Recovery Section 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.

McALLEN, Texas – A total of six local individuals have been ordered to federal prison for straw purchasing firearms, announced Acting U.S. Attorney Abe Martinez.

 

Jesus Alberto Murillo, 24, Rene Hernandez, 22, Miguel Cervantes, 22, Mariano Eberth Garcia, 22, and Felix Hernandez, 26, all of McAllen, and Marella Sandoval, 31, of Penitas, all previously pleaded guilty.

 

Today, U.S. District Judge Micaela Alvarez heard testimony from a Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) special agent regarding the roles of the defendants in straw purchasing firearms that were unlawfully exported to Mexico for use by Cartel members. Judge Alvarez sentenced Murillo and Rene Hernandez to 115 months and 72 months in federal custody, respectively. The sentences were enhanced as the court found they were both a leader or supervisor in the offense. Felix Hernandez and Cervantes were sentenced to 60 and 24 months in federal custody, respectively.

 

At a hearing yesterday, Judge Alvarez sentenced Garcia to 50 months imprisonment.

 

U.S. District Judge Ricardo Hinojosa sentenced another individual involved in the offense, Carlos Alberto Zamudio, 34, McAllen, to a term of 48 months on April 24, 2017. Sandoval will be sentenced by Judge Alvarez on July 27, 2017.

 

The defendants sentenced today conducted or recruited others to conduct the straw purchase of firearms from various federal firearms licensees between September and October 2015. The investigation revealed that the defendants combined to purchase more than 100 firearms throughout the Rio Grande Valley. To date, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) has learned that at least 14 of the purchased firearms were recovered in Mexico.

 

Murillo, Sandoval, Garcia, Felix and Rene Hernandez have been and will remain in federal custody. Cervantes was permitted to remain on bond and surrender to authorities at a later date.

 

The ATF conducted the investigation with the assistance of police departments in McAllen and Corpus Christi. Assistant U.S. Attorney Roberto Lopez Jr. is prosecuting the case.

HOUSTON ‐ A 32-year-old Pakistani national who resided in the local area has been ordered to federal prison following his convictions on six counts of mail fraud, announced Acting U.S. Attorney Abe Martinez. Babar Butt resided in multiple locations in Houston and Spring and operated an electronics export business, routinely shipping items to Dubai, United Arab Emirates.

 

Today, U.S. District Judge Keith P. Ellison, who accepted the guilty plea, handed Butt a 21-month sentence. He was further ordered to pay $287,679 in restitution to FedEx. In handing down the sentence, Judge Ellison found that Butt was in the business of fencing stolen property and noted that Butt’s conduct was deplorable. Not a U.S. citizen, Butt is expected to face deportation proceedings following his release from prison.

 

Beginning in February 2015, Butt devised a scheme whereby he defrauded FedEx by opening various shipping accounts. He would ship one or more packages of cell phones and electronics to Dubai and elsewhere until the charges were declined and he could no longer ship on that account. He would then open new accounts to continue his scheme and would again not pay his shipping invoices, causing significant losses to FedEx.

 

Butt 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. Assistant U.S. Attorney Heather Winter is prosecuting the case.

BROWNSVILLE, Texas – A former correctional officer will now be on the other side of prison bars following his conviction of accepting bribes in his capacity as a public official, announced Acting U.S. Attorney Abe Martinez. Stephen Salinas, 23, of Edcouch, pleaded guilty Jan. 3, 2017.

 

Today, U.S. District Judge Andrew S. Hanen handed Salinas an 18-month sentence to be immediately followed by three years of supervised release. The term includes upward adjustments in his calculated sentencing guideline range because he received more than one bribe, was in a high level or sensitive position and used his position as a public official to facilitate the introduction of the contraband into a prison facility.

 

Salinas was a correctional officer formerly employed at the Management and Training Corporation (MTC) Willacy County Regional Detention Center. At the time of his plea, Salinas admitted that between October 2015 and January 2016, he accepted bribes in exchange for providing cell phones and gallon jugs of alcohol to inmates at the MTC Detention Center. He admitted he used his position as a correctional officer to smuggle the items into the facility. Was paid a total of approximately $3,000 for allowing the contraband into the facility.

 

Salinas was permitted to remain on bond and voluntarily surrender to the U.S. Marshals Service at a later date.

 

Department of Justice - Office of Inspector General, U.S. Marshals Service and Department of Homeland Security conducted the investigation. Assistant U.S. Attorney Angel Castro prosecuted the case.

CORPUS CHRISTI, Texas – A local tax return preparer has admitted to willfully aiding and assisting in the preparation of false U.S. Income Tax Returns for others and filing a false income tax return for herself, announced Acting U.S. Attorney Abe Martinez along with Special Agent in Charge Rick Goss of IRS - Criminal Investigation (CI).

 

Cristina Gonzalez pleaded guilty today, admitting she defrauded the United States by not reporting income she had earned on her personal income tax return and preparing fraudulent tax returns for others.

 

“This action today serves to show that running a business based around defrauding the U.S. taxpayers is no way to do business. Gonzalez, acting as a tax return preparer, submitted numerous false tax returns to the IRS causing the loss of hundreds of thousands of dollars,” said Goss. “This type of dishonesty will not go unpunished. IRS-CI will continue to track down and stop unscrupulous tax return preparers.”

 

During tax years 2011 through 2014, Gonzalez operated a tax preparation business in Alice which prepared and filed more than 1,200 federal income tax returns for clients. More than 99% of returns Gonzalez prepared claimed a refund and nearly 60% of the returns claimed the maximum earned income tax credit. An IRS review of returns Gonzalez filed showed many of the returns included suspicious “household help” income in specific amounts which maximized earned income credits and resulted in significantly larger tax refunds to her clients.

 

IRS agents located and interviewed the taxpayers associated with 47 of these returns. The income each of these taxpayers reported was significantly less than the amount of income reported in the tax returns Gonzalez filed, and virtually all of the taxpayers denied earning any significant household help income or reporting any such income to Gonzalez. The false representations in the tax returns Gonzalez prepared caused a tax loss to the United States of $223,305 in these 47 returns alone.

 

Gonzalez also prepared and filed her own personal federal income tax returns for 2011, 2012, 2013 and 2014. In each of these returns, she failed to report any income generated through her tax preparation business. Gonzalez collected fees from clients ranging from $350 up to $2,280 per return. Gonzalez received many of these fees by instructing the IRS to “split” the taxpayer’s refund and send a portion of the refund to bank accounts Gonzalez owned or controlled. Between 2011 and 2014, Gonzalez failed to report $276,842.71 in split fees as income on her personal income tax returns. The failure to report this income resulted in substantial unpaid taxes owed to the United States.

 

Senior U.S. District Judge John D. Rainey accepted the plea today and has set sentencing for Oct. 16, 2017. At that time, Gonzalez faces up to five years in federal prison for the personal tax evasion as well as another three years for aiding in the preparation of false tax returns for others. Both convictions also carry a possible $250,000 maximum fine.

 

She was permitted to remain on bond pending her sentencing hearing.

 

IRS-CI conducted the investigation. Assistant U.S. Attorney Robert D. Thorpe Jr. is prosecuting the case.

HOUSTON – A local income tax return preparer has pleaded guilty to preparing a false U.S. Individual Income Tax Return for a client, announced Acting U.S. Attorney Abe Martinez.

 

Chester Swanson admitted in the plea agreement filed in the record of the case that he prepared at least 37 false income tax returns for clients with a resulting intended income tax harm to the United States of more than $244,000. He further admitted the false items he placed on the income tax return underlying his guilty plea included false amounts of unreimbursed medical and dental expenses, false amounts of gifts to charity, false amounts of unreimbursed employee expenses, and false amounts of alleged losses from a sole proprietorship.

 

Swanson operated his income tax preparation business under the name of Chester’s Mobile Tax Service in which he met clients at various locations in Houston to prepare their income tax returns for them. Swanson admitted he also used the name Hollywood Business SVC Investments in his tax preparation business.

 

Swanson has agreed to pay more than $244,000 in restitution to the IRS and to never again prepare income tax returns for others.

 

U.S. District Judge Keith Ellison accepted the plea and set sentencing for Oct. 3, 2017. At that time. Swanson faces up to three years in federal prison and a possible $250,000 maximum fine. He was permitted to remain on bond pending that hearing.

 

IRS-Criminal Investigation conducted the investigation. Assistant U.S. Attorney Charles J. Escher is prosecuting the case.

HOUSTON – A 50-year-old Fulshear woman has been sentenced to federal prison for her role as a leader and organizer in a scheme involving the billing of insurance companies for creams containing Ketamine without valid prescriptions, announced Acting U.S. Attorney Abe Martinez. A federal jury convicted Tamara Mitchell Nov. 9, 2016, following a three-day trial.

 

“The public expects that the prescription drugs they receive are pursuant to valid prescriptions that are based on a legitimate medical need,” said Special Agent in Charge Spencer E. Morrison of the Food and Drug Administration - Office of Criminal Investigation, (FDA-OCI) Kansas City Field Office. “Our office will continue to pursue and to bring to justices those who jeopardize the public health by engaging in fraudulent schemes to dispense prescription drugs.”

 

Today, U.S. District Judge Nancy Atlas ordered Mitchell to prison for a total of 14 years to be immediately followed by three years of supervised release. At the hearing, the court heard additional evidence that one of the individuals who received the creams died from Ketamine and Cyclobenzaprine toxicity. Both substances were active ingredients in the creams Mitchell sold. In handing down the sentence, Judge Atlas noted the vast nature of the fraud scheme was one of the worst she had seen in 22 years on the bench.

 

During trial, the jury heard evidence demonstrating Mitchell was an owner of two pharmacies, Diamond and Save Rite, that sold creams containing controlled substances as part of a marketing scheme rather than for legitimate medical need. Both pharmacies sold these compounded creams containing Ketamine to the public by using pre-signed prescriptions to fill orders for customers who had the “right” insurance plans. The individuals who received the creams were never examined by a doctor and the submissions to the insurance providers contained misrepresentations regarding the medical need.

 

Mitchell hired a pharmacy technician and pharmacist to conduct the day-to-day operations of the business, while another pharmacist marketed the creams to anyone with an insurance plan that would pay. Diamond Pharmacy paid a physician and nurse practitioner thousands of dollars per month to pre-sign prescription pads without examining patients. Under Mitchell’s direction, Diamond and Save Rite falsely billed insurance companies for more than $17 million in just two years.

 

Mitchell will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

 

The FDA-OCI and Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorney James McAlister is prosecuting the case.

HOUSTON – A Houston man and woman have been ordered to federal prison following their convictions of conspiracy to commit sex trafficking of minors and sex trafficking of minors, announced Acting U.S. Attorney Abe Martinez. A federal jury convicted Jazsmine Arielle Joseph, 28, on Sept. 2, 2016, following a week-long trial and approximately six hours of deliberation. Co-defendant Xavier Cooper, 32, had previously pleaded guilty.

 

Today, U.S. District Judge David Hittner handed both defendants 262-month prison sentences. They were further ordered to serve five years of supervised release following completion of the prison terms, during which time he will have to comply with numerous requirements designed to restrict his access to children. Both will also be ordered to register as a sex offender.

 

During the trial, the jury ultimately found Joseph engaged in a conspiracy with Cooper between October 2014 through March 2015, in which they engaged in conspiracy to entice, transport and harbor a minor female to engage in commercial sex. Joseph paid for and directed the posting of prostitution ads online. Joseph also rented hotel rooms where the minor engaged in commercial sex acts.

 

The jury heard that the minor engaged in numerous commercial sex acts over the course of the conspiracy culminating with her recovery during a highly publicized sting operation on March 31, 2015. At trial, Joseph claimed she was “just helping a friend” in regard to her renting the hotel room and assisting with the posting of the prostitution ads. The jury also heard about and viewed text messages between Joseph and Cooper discussing the minor victim. The texts discussed making sure the victim was ready to receive customers and when customers were on their way.

 

Joseph attempted to convey her innocence by testifying she was trying to help the victim and protect her from Cooper. The jury was not convinced and found her guilty on both counts.

 

Both will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

 

The Texas Department of Public Safety investigated with the assistance of the FBI. Assistant U.S. Attorneys Kimberly A. Leo and Sherri L. Zack prosecuted the case.

 

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."

LAREDO, Texas – A 52-year-old Houston man has been sentenced in Laredo federal court to a 94-month-term of imprisonment for attempting to import 17 kilograms of methamphetamine, announced Acting U.S. Attorney Abe Martinez. Octavio Gomez-Solis pleaded guilty March 6, 2017.

 

Today, U.S. District Judge Diana Saldana imposed the sentence which will be immediately followed by three years of supervised release. In handing down the sentence, the court noted the defendant’s criminal history and stated that a lengthy prison sentence was needed to deter such conduct.

 

On Dec. 20, 2016, Gomez-Solis arrived at the Lincoln-Juarez Bridge and applied for admittance to the United States. At that time, a K9 alerted to the presence of narcotics and Gomez-Solis was referred to secondary inspection. U.S. Customs and Border Protection (CBP) agents then discovered 12 bundles concealed within the radiator of the vehicle. The bundles of methamphetamine weighed a total of 17.52 kilograms.

 

Gomez-Solis admitted he knew he was transporting something “illegal,” but was not sure what type of drug it was.

 

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 CBP conducted the investigation. Assistant U.S. Attorney Alfredo De La Rosa prosecuted the case.

McALLEN, Texas ‐ A former laboratory technician at a medical clinic in Mission and an account representative for a toxicology testing company have been indicted in connection with a scheme to defraud Medicare, announced Acting U.S. Attorney Abe Martinez.

 

Ivar Cantu, 46, of Palmview, was arrested today and is set to make his initial appearance before U.S. Magistrate Judge Peter Ormsby at 10:30am. Co-defendant Omar Solis, 35, of Mission, was taken into custody yesterday.

 

The 18-count indictment charges Cantu and Solis with conspiracy to commit health care fraud, health care fraud and aggravated identity theft.

 

According to the indictment, Cantu and Solis fraudulently set up an account between the medical clinic where Solis was employed as a laboratory technician and the toxicology testing company for whom Cantu was an account representative. During the latter half of 2015, Solis allegedly misappropriated urine specimens of patients of the medical clinic and sent them to the toxicology testing company without the consent of the patient or doctor in order to receive commissions and collection fees from the testing company. Cantu and Solis forged patient signatures, falsified medical records and created fictitious documents in carrying out the scheme, according to the indictment.

 

As a result of the conspiracy, Medicare was billed $836,788 between May 2015 and December 2015.

 

The charge for conspiracy to commit health care fraud and each of the eight counts of health care fraud carry a maximum punishment of 10 years in federal prison and a possible $250,000 maximum fine, upon conviction. Each of the nine counts of aggravated identity theft carries a mandatory two‐year additional prison term which must be served consecutively to any other prison sentence imposed.

 

The FBI and the U.S. Department of Health and Human Services‐Office of Inspector General conducted the investigation. Assistant U.S. Attorney Andrew Swartz is prosecuting the case.

 

An indictment is an accusation of criminal conduct, not evidence.

A defendant is presumed innocent unless convicted through due process of law.

McALLEN, Texas – A 21-year-old Pharr man has been sentenced to life in federal prison following his convictions of conspiracy to commit hostage taking and conspiracy to transport undocumented aliens, announced Acting U.S. Attorney Abe Martinez. A federal jury sitting in McAllen convicted Luis Gerardo Betancourt in absentia following a five-day trial and less than three hours of deliberation on March 30, 2017. Also sentenced today were 25-year-old Mexican citizen Luis Enrique Perez-Talavera and Jonathan Carlos Valdez-Harris, 22, of Phar, who had both previously pleaded guilty.

 

Today, U.S. District Judge Randy Crane ordered Betancourt to serve life in prison. Perez-Talavera and Valdez-Harris received respective sentences of 240 and 120 months in federal prison. Betancourt and Perez-Talavera were ordered to pay $26,000 in restitution, while Valdez is to pay $3,000. In handing down the sentence, the court noted how vulnerable one of the victims was, an eight-year-old child, and that the hostage taking conspirators exploited her age and vulnerability to pry additional ransom from family members.

 

The investigation began Dec. 4, 2015, when authorities learned of people in other states being forced to pay for the release of family members being held hostage at an undetermined location. Testimony at trial revealed that an individual had paid approximately $17,000 for such release. The jury heard that some family members received threats such as to cut off body parts and kill the hostages, one of whom was an eight-year-old victim, if monetary demands were not met. Further investigation revealed Betancourt’s involvement in the conspiracy. The jury heard that he was responsible for recruiting and transporting co-conspirators as well as the receipt of money sent by the victims’ family members.

 

The hostages held during the course of the conspiracy were eventually released Dec. 8, 2015.

 

Betancourt was present upon the jury’s selection, but failed to appear for trial, presentation of the evidence and his sentencing hearing. He is considered a fugitive and a warrant remains outstanding for his arrest. Anyone with information about his whereabouts is asked to contact the United States Marshals Service in McAllen, Texas at (956) 618-8025.

 

The FBI Safe Streets Task Force conducted the investigation with assistance from Border Patrol, Customs and Border Protection, police departments in Pharr and Robstown Police Department and the Orange County, Florida, Sheriff’s Office. Assistant U.S. Attorneys David A. Lindenmuth and Roberto Lopez Jr. are prosecuting the case.

GALVESTON, Texas – A former ship captain for Majestic Ventures, Majestic Dinner Cruises and Majestic Yacht Charters dinner cruise lines has been ordered to federal prison following her conviction of aggravated identity theft and making false statements in a passport application, announced Acting U.S. Attorney Abe Martinez along with Special Agent in Charge Michael Perkins of the Department of State’s Diplomatic Security Service (DSS) and Captain Kevin Oditt, the commander of Coast Guard Sector Houston-Galveston.

 

Cynthia Lyerla, 53, of League City, pleaded guilty March 30, 2017.

 

Today, U.S. District Judge George C. Hanks ordered she serve 12 months for the false statements in a passport application as well as a mandatory 24 months for the aggravated identity theft which must be served consecutively. The total 36-month-term will be immediately followed by one year of supervised release.

 

At the hearing, the court heard that Lyerla stole the identity of a deceased child following an investigation into the death of her husband in 1988 and has used it ever since to obtain driver’s licenses, passports, merchant mariner licenses and transit worker identification credentials. She also purchased a firearm using the stolen identity.

 

Lyerla was further ordered to pay a $15,000 fine. In handing down the sentence, Judge Hanks noted the importance of the integrity of government records and that people’s safety depends on the information in those documents being accurate. He explained that the numerous documents Lyerla falsified and the importance of the documents warranted the sentence imposed.

 

“The Diplomatic Security Service is firmly committed to working with the U.S. Department of Justice and our other law enforcement partners to investigate allegations of crime related to passport and visa fraud and to bring those who commit these crimes to justice,” said Michael Perkins, Special Agent-in-Charge of the Houston Field Office of the U.S. Department of State’s Diplomatic Security Service (DSS).

 

“The result of today's hearing was due to significant collaborative efforts from the Coast Guard Investigative Service partnering with the Diplomatic Security Service, the Transportation Security Administration as well as the United States Attorney's Office," said Oditt. “The Coast Guard is committed to a safe and secure maritime transportation system and this starts with ensuring mariners are properly licensed and credentialed.”

 

Lyerla admitted to obtaining the birth certificate of Christina White in 1992 and then using that identity to obtain a second Social Security number. She was also able to obtain driver’s licenses, passports, mariner licenses and Transportation Security Administration (TSA) documentation allowing her to enter secure port areas. Without a mariner license and TSA documentation, Lyerla would not be allowed to captain the ships for the dinner cruise companies.

 

The real Christina White died in 1965 on the same day she was born.

 

Cynthia Lynn Knox was born in 1964, later married Harold Lyerla and took his name. The marriage ended when Harold Lyerla was murdered in 1988 in Lompoc, California. Although another individual was convicted for that crime, Lyerla’s fingerprints were taken by the local police in the course of the investigation.

 

Since that time, Lyerla used the identity of Christina White, providing her date and place of birth, Social Security number and parents’ names in order to apply for and obtain various legal documentation.

 

Authorities discovered Lyerla’s true identity when her fingerprints were taken in connection with a mariner license application and compared to those taken in 1988 and 1989 during the investigation into the murder of her husband. Additionally, a retired California police detective, who investigated that murder, positively identified the defendant as Lyerla.

 

Previously released on bond, Lyerla was taken into custody following the sentencing today where she will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

 

The Department of State - Diplomatic Security Service and U.S. Coast Guard Investigative Service conducted the investigation. Assistant U.S. Attorney Adam Goldman is prosecuting the case.

LAREDO, Texas – A 24-year-old U.S. citizen and resident of Nuevo Laredo has been ordered to federal prison for attempting to smuggle more than a dozen firearms, scopes and ammunition magazines to Mexico, announced Acting U.S. Attorney Abe Martinez. Iram Abel Buentello pleaded guilty March 31, 2017.

 

Today, U.S. District Judge Diana Saldana sentenced Buentello to 51 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the court heard that weapons smuggled to Mexico often end up in the hands of violent international cartels. The government also contended that the type of weapons Buentello smuggled, such as high-powered rifles, can cause tremendous loss of life. In handing down the sentence, the court described the case as “a very serious matter.” The court further recognized the ongoing violence in Mexico and how Buentello’s conduct only “adds fuel to the fire.”

 

On Feb. 1, 2017, Buentello climbed inside of a pickup truck parked in downtown Laredo which had a cache of high-powered weapons concealed in the truck’s bed. Buentello drove the truck to the Lincoln Juarez Bridge II in Laredo and attempted to exit the United States into Mexico.

 

At the bridge, he told U.S. Customs and Border Protection (CBP) officers that he had no weapons to declare. CBP officers searched the truck and found a non-factory compartment in the truck bed containing five rifles, two shotguns, six handguns, six magazines and four scopes. Several of the weapons had been reported stolen. Buentello falsely claimed that he picked the truck up at a family member’s house and came to Laredo to shop. He had no license, permit or authorization to export the weapons to Mexico.

 

He has been and will remain in federal custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

 

Immigration and Customs Enforcement’s Homeland Security Investigations and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation with the assistance of the U.S. Customs and Border Protection. Assistant U.S. Attorney Chris Howard prosecuted the case.

BROWNSVILLE, Texas – A 44-year-old resident of Brownsville has been ordered to federal prison for his conviction of possession with intent to distribute methamphetamine, announced Acting U.S. Attorney Abe Martinez. Antonio Torres pleaded guilty July 13, 2016.

 

Today, U.S. District Judge Andrew S. Hanen ordered Torres to serve 240 months in federal prison followed by a five-year-term of supervised release.

 

On or about Oct. 23, 2015, Torres attempted to enter the United States through the Gateway Port of Entry in Brownsville in a silver Nissan. During inspection of the vehicle, officers discovered 22 bundles of methamphetamine secreted in the floorboard underneath the driver’s and front passenger’s seats. The bundles of methamphetamine had a gross weight of 24 kilograms.

 

Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of U.S. Customs and Border Protection. Assistant U.S. Attorney Ana Cano is prosecuting the case.

HOUSTON – A 45-year-old local man has been ordered to federal prison following his convictions of conspiracy to possess with intent to distribute cocaine, possession with intent to distribute cocaine and conspiracy to launder money, announced Acting U.S. Attorney Abe Martinez. A federal jury convicted Oscar Benitez, of Conroe, Nov. 3, 2016, following one day of deliberations and three days of trial.

 

Today, U.S. District Judge Vanessa Gilmore handed Benitez a 188-month sentence to be immediately followed by five years of supervised release. In handing down the sentence, Judge Gilmore noted that while Benitez was convicted for his involvement in two specific loads of cocaine totaling 101 kilograms, he was also involved in a wide-ranging conspiracy that trafficked large amounts of drugs and used a business he owned to launder large amounts of money from drug sales.

 

During trial, the jury heard that the investigation began in early 2011. At that time, agents with the Drug Enforcement Administration (DEA) in Philadelphia, Pennsylvania, seized approximately four kilograms of cocaine from a vehicle that had been driven there from the Houston area. The investigation revealed the vehicle had recently been sold by Bensol Auto Sales in Arcola, Texas - a used car dealership that Benitez owned.

 

Houston agents then realized one of their confidential sources had already been speaking to Benitez about trying to buy large amounts of cocaine from him and his drug supplier. Benitez subsequently had told the individual that he moved large amounts of cocaine (25-100 kilograms at a time) and that he had a very well-connected drug supplier who could make such large deals happen.

 

The jury also heard that on June 16, 2011, a North Carolina Highway Patrol trooper pulled over a Ford F-150 pickup truck in Monroe, North Carolina, for a traffic violation. Reuben Orozco-Garcia was driving with Juan Gonzalez-Bejar as a passenger. The truck contained 81 kilograms of cocaine. Testimony at trial revealed Orozco-Garcia had made a deposit of $9,000 into a bank account belonging to Bensol Auto Sales and Benitez the day of the cocaine seizure. The jury also heard that Benitez was using this Bensol Auto Sales account to launder the drug trafficking proceeds and that he supplied vehicles from Bensol to his drug supplier to transport drugs to other parts of the United States.

 

Orozco-Garcia and Gonzalez-Bejar pleaded guilty in North Carolina and were previously sentenced to federal prison.

 

The evidence at trial also showed that in the fall of 2013, Guadalupe Herrera-Monarrez delivered approximately 20 kilograms of cocaine to Benitez on a ranch he owns in Conroe. This delivery happened in the early morning hours and was directed by Benitez’ drug supplier, who was then located in Mexico. Herrera-Monarrez was convicted for his role in this offense in a separate federal case.

 

The jury ultimately convicted Benitez on all accounts as charged.

 

Previously released on bond, Benitez 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.

 

Also charged is Rodolfo Penaloza, 41, of Mexico, but not as yet in custody. He is considered a fugitive and a warrant remains outstanding for his arrest. Anyone with information about his whereabouts is asked to contact the Drug Enforcement Administration (DEA) at 713-693-3000.

 

The DEA, Internal Revenue Service – Criminal Investigation and the North Carolina Department of Public Safety conducted this Organized Crime Drug Enforcement Task Force investigation. Assistant U.S. Attorneys Arthur R. Jones and Richard J. Magness are prosecuting the case.

LAREDO, Texas – A 48-year-old man from Monterrey, Nuevo Leon, Mexico, has been sentenced for conspiracy to import crystal methamphetamine and brown heroin, announced Acting U.S. Attorney Abe Martinez. Genaro Garcia-Gutierrez pleaded guilty Nov. 1, 2016.

 

Today, U.S. District Judge George P. Kazen ordered him to prison for 150 months. Not a U.S. citizen, he is expected to face deportation proceedings following his release.

 

On July 20, 2016, Garcia-Gutierrez took part in a conspiracy to smuggle 5.22 kilograms of crystal methamphetamine and 1.7 kilograms of brown heroin through the Lincoln-Juarez International Bridge in Laredo. He was driving a 2008 Dodge Nitro with Mexican license plates. Authorities soon discovered 10 packages containing the crystal methamphetamine and four packages with the brown heroin in the rear passenger quarter panel of the vehicle.

 

Garcia-Gutierrez 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.

HOUSTON – A 38-year-old resident of Houston has been arrested in connection with the submission of falsified funds requests to an investment adviser for the Basilian Father’s Missions of the Catholic Church (BFM), announced Acting United States Attorney Abe Martinez.

 

A grand jury returned a sealed indictment against Rosina K. Blanco aka Rosina Aviles on June 29, 2017, charging her with eight counts of wire fraud. The indictment was unsealed upon her arrest by federal authorities today. She is expected to make her initial appearance before U.S. Magistrate Frances Stacy at 2:00 p.m.

 

The BFM is headquartered in Sugar Land and raises money in North America to support schools in Mexico and Colombia. It reports to the Congregation of St. Basil, an order of Catholic priests headquartered in Toronto, Canada. The BFM receives funding from several sources to include the Congregation of St. Basil in Canada, individual mail solicitations and mission offerings.

 

The indictment alleges that on Aug. 31, 2015, Blanco was hired to be the bookkeeper for the BFM. She allegedly then caused more than $1 million in unauthorized transfers from BFM accounts to accounts in her name. Blanco accomplished the theft by using a computer to transmit fraudulent and falsified funds transfer requests from the Southern District of Texas to the BFM investment manager in St. Louis who then unwittingly transferred more than $1 million in BFM funds, according to the charges.

 

From September 2015 to October 2016, Blanco facilitated the transfer of approximately $1,107,425 from BFM accounts to her personal accounts without authorization, according to the indictment. Blanco allegedly used the majority of these funds for personal expenses such as jewelry, furniture, luxury cars, real estate, Louis Vuitton handbags, goods and services for her dog and other luxury items.

 

The FBI conducted the investigation. Assistant U.S. Attorney Belinda Beek 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.

LAREDO, Texas – A 49-year-old resident of Harker Heights has been ordered to federal prison for attempting to entice a minor to engage in unlawful sexual activity, announced Acting U.S. Attorney Abe Martinez. Alton Zerie Brister pleaded guilty March 31, 2017.

 

Today, U.S. District Judge George P. Kazen handed Brister a 120-month sentence. Brister will also serve 10 years of supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. He will also be ordered to register as a sex offender and must pay a $5,000 special assessment.

 

Brister had placed a Craigslist ad that sought “school time fun.” He soon began engaging in sexually-explicit conversations with someone be believed to be a 14-year-old girl. He also sent sexually-explicit photos to that individual, who was actually a member of law enforcement. Eventually, Brister agreed to meet the individual in Laredo for the purpose of engaging in sex with the girl and her mother. He was arrested upon his arrival.

 

Following his arrest, Brister admitted posting the Craigslist advertisement and engaging in sexually explicit communications with someone whom he believed to be a minor.

 

He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

 

Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Christopher S. Coker prosecuted the case.

HOUSTON – A trustee with Houston Community College (HCC) was recently convicted of bribery of a public official concerning programs receiving federal funds, announced U.S. Attorney Abe Martinez.

 

U.S. District Judge Vanessa Gilmore unsealed the case against Chris Oliver, 53, of Houston, today. He was originally charged March 9, 2017, and pleaded guilty May 15, 2017.

 

At the time of his guilty plea, Oliver admitted he accepted bribes in exchange for the promise of official actions related to his duties as a member of the HCC board of trustees. It was revealed in open court at the plea hearing that Oliver met with another individual on several occasions at various restaurants and coffee shops in Houston where he accepted cash payments in exchange for promising to use his position to help that person secure contracts with HCC.

 

He was permitted to remain on bond pending sentencing, which has been set for Aug. 28, 2017. At that time, Oliver faces up to 10 years in federal prison and a possible $250,000 fine.

 

The FBI conducted the investigation with assistance from the Department of Education - Office of Inspector General. Assistant U.S. Attorneys Andrew Leuchtmann and Julie Searle are prosecuting the case.

 

If you have information regarding public corruption in the Houston area, please contact the FBI helpline at 713-693-5000.

A Houston, Texas business owner was sentenced today to 36 months in prison for failing to pay over employment taxes, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Abe Martinez for the Southern District of Texas.

According to documents filed with the court, Richard Floyd Tatum Jr., 57, owned Associated Marine & Industrial Staffing Inc. (AMI), an industrial staffing company that provided temporary labor to businesses in Texas and other states. Tatum employed approximately 1,000 people to include internal employees, who worked for AMI, and external employees, who AMI assigned to work on-site at client locations. Tatum was responsible for collecting, accounting for and paying over to the Internal Revenue Service (IRS) the payroll taxes withheld from AMI’s employees’ wages. Tatum exercised significant control over AMI’s finances, entered into contracts on behalf of AMI, signed checks, to include payroll, and decided which creditors to pay. Tatum also signed and filed AMI’s employment tax returns.

From March 2008 through December 2009, Tatum filed false and delinquent employment tax returns for AMI, which did not report AMI’s external employees. In May 2013, Tatum filed delinquent returns for the quarters ending in March 2010 through December 2012, reporting AMI’s external employees but making no payments of the taxes owed. Tatum withheld from his employees approximately $12 million in payroll taxes from March 2008 through December 2012, but did not pay over any of this money to the IRS. Tatum also failed to pay $6 million of AMI’s required share of social security and Medicare taxes during the same quarters. Instead, he used the money for his personal benefit, including making payments on his ranch and traveling to Las Vegas, Hawaii and France. Tatum admitted that he caused a tax loss of more than $18 million.

In addition to the term of imprisonment imposed, Tatum was order to serve three years of supervised release and to pay restitution to the IRS in the amount of $18,298,604. Tatum pleaded guilty to one count of failing to pay over employment taxes in March.

“For years, Richard Tatum Jr. violated his legal duty, failing to pay more than $18 million in employment taxes,” said Acting Deputy Assistant Attorney General Goldberg. “He cheated his employees, the U.S, Treasury and his honest competitors who paid their taxes and sought to compete on a level playing field. Employment tax enforcement remains a top priority for the Tax Division, and Tatum’s prison sentence today sends a strong message that those who divert such payments for their personal benefit will be held accountable.”

“When Mr. Tatum decided not to pay employment taxes, he not only affected the revenue to the U.S. government, but also the system that ensures employees’ Medicare and Social Security benefits,” said Chief Don Fort of IRS Criminal Investigation (CI). “Today’s sentencing of Mr. Tatum again emphasizes that IRS-CI and the Department of Justice will be relentless and aggressive in our pursuit of those who attempt to defraud America’s tax system.”

Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Martinez commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorneys Grace Albinson and Mara Strier of the Tax Division, who prosecuted this case.

Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.

VICTORIA, Texas – A 42-year-old former resident of Goliad has admitted to posing as a nurse, announced acting U.S. Attorney Abe Martinez. Leticia Gallarzo pleaded guilty to five counts of making false statements relating to health care today in federal court.

 

Gallarzo has no medical training, but obtained employment as a registered nurse at two hospitals and three nursing homes in five different Texas cities over a seven-month period. As each employer discovered the deception, Garza would leave the facility and immediately begin seeking work at a medical facility in another city.

 

At today’s hearing, Gallarzo admitted she had knowingly lied about being a registered nurse on five occasions in order to secure employment for which she was not qualified.

 

Senior U.S. District Judge John D. Rainey accepted the plea and set sentencing for Oct. 3, 2017. At that time, Gallarzo faces up to five years in federal prison and a possible $250,000 maximum fine. She will remain in custody pending that hearing.

 

The FBI and the Texas Attorney General’s Office - Medicaid Fraud Control Unit conducted the investigation with the assistance of police departments in Goliad and Victoria. Assistant U.S. Attorney Robert D. Thorpe Jr. is prosecuting the case.

McALLEN, Texas – Doctors Hospital at Renaissance Ltd. (DHR) has agreed to a settlement under the Americans with Disabilities Act (ADA) to ensure it provides appropriate auxiliary aids and services to individuals who are deaf or hard of hearing when providing medical services, announced Acting U.S. Attorney Abe Martinez.

 

The investigation began following a lawsuit a local deaf couple had filed, alleging DHR violated the ADA by failing to provide sign language interpretive services to ensure effective communication regarding their daughter’s treatment for cancer. The deaf parents alleged that starting in 2011, they were unable to effectively communicate with DHR’s doctors and medical personnel at various times during their daughter’s treatment. The lawsuit further alleged the mother was forced to use a family member to translate what the doctors and medical personnel at DHR were saying.

 

“This settlement exemplifies our commitment to protect the rights of the hearing impaired and to ensure that they are able to communicate with health care professionals, especially when patients have critical and complex interactions with medical providers,” said Martinez.

 

The settlement agreement requires DHR to provide appropriate auxiliary aids and services, including qualified interpreters. DHR must also appoint an ADA administrator, provide training to the hospital’s staff on the requirements of the ADA and to adopt specific policies and procedures to ensure patients and companions who are deaf or hard of hearing promptly receive auxiliary aids and services. The settlement agreement also provides for continued monitoring by the Southern District of Texas to ensure DHR is meeting its obligations under the ADA.

 

Assistant U.S. Attorney Paxton Warner handled the matter on behalf of the Southern District of Texas.

 

This case is a part of the Department of Justice’s Barrier-Free Health Care Initiative, which seeks to enforce the ADA’s prohibition of discrimination against individuals with disabilities by health care providers. Through the Barrier-Free Health Care Initiative, U.S. Attorneys’ offices across the nation and the Department of Justice - Civil Rights Division target their enforcement efforts on a critical area for individuals with disabilities—access to medical services and facilities. The Barrier-Free Health Care Initiative is a multi-phase initiative that includes effective communication for people who are deaf or have hearing loss, physical access to medical care for people with mobility disabilities and equal access to treatment for people who have HIV/AIDS.

 

The Department of Justice has a number of publications available to assist entities to comply with the ADA, including a Business Brief on Communicating with People Who Are Deaf or Hard of Hearing in Hospital Settings. Visit the ADA for more information and to access these publications. ADA Complaints may be filed Department of Justice or within the Southern District of Texas.

CORPUS CHRISTI, Texas – A 46-year-old local man has entered a guilty plea to distribution of child pornography, announced Acting U.S. Attorney Abe Martinez.

 

Ronald Eugene Lowrey Jr. came to the attention of law enforcement when the Texas Attorney General’s Office conducted an investigation into a peer-to-peer file sharing network in 2014. Through that investigation, authorities identified a specific computer with suspected child pornography. Authorities later downloaded a total of eight such files that were being distributed via that device. The computer was later linked to Lowrey Jr. in Corpus Christi.

 

Law enforcement executed a search warrant at his residence, at which time he admitted to using the file sharing program and to viewing child pornography.

 

A forensic examination of the items seized during execution of the search warrant revealed approximately 37 images and 246 videos of child pornography, including those that authorities had previously downloaded.

 

U.S. District Judge Nelva Gonzalez Ramos accepted the guilty plea today and set sentencing for Oct. 19, 2017. At that time, Lowrey faces a minimum of five and up to 20 years in federal prison as well as a possible $250,000 maximum fine. Upon completion of any prison term imposed, Lowrey also faces a maximum of life on supervised released during which the court can impose a number of special conditions designed to protect children and prohibit the use of the Internet.

 

Lowrey was arrested on the federal charges in April 28, 2017, and has been in federal custody since that time where he will remain pending his sentencing hearing.

 

The Texas Attorney General’s Office, Corpus Christi Police Department’s Internet Crimes Against Children Task Force and the FBI conducted the investigation.

 

This case, prosecuted by Assistant U.S. Attorney Elsa Salinas, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."

BROWNSVILLE, Texas – A 62-year-old resident of Los Fresnos has been sentenced to federal prison for possession of child pornography, announced Acting U.S. Attorney Abe Martinez. Isaac Gonzalez pleaded guilty April 4, 2017.

 

Today, U.S. District Judge Rolando Olvera handed Gonzalez a sentence of 78 months in federal prison. Gonzalez will also spend the rest of his life on 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 for life.

 

The investigation into Gonzalez 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 Gonzalez’s residence on Feb. 15, 2017, which led to the discovery of 1,650 images of child pornography on his laptop. These images contained depictions of prepubescent minors, including one video depicting the sexual abuse of a toddler.

 

Gonzalez 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. Attorneys Jason Corley and Ana Cano, 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."

LAREDO, Texas – Two Texas men have been ordered to prison following their convictions for conspiring to fraudulently claim federal income tax refunds using stolen identity information, announced Acting U.S. Attorney Abe Martinez and Special Agent in Charge Rick Goss of IRS-Criminal Investigation. Sunday Quincy Usoh, 47, of Dallas, and Jeffery Wahab Jubril, 43, of Killeen, pleaded guilty May 17, 2016.

 

“These international thieves and their cohorts tried to get away with a major identity theft tax scheme designed to steal amounts in the millions of dollars from the American taxpayers,” said Goss. “CI agents use special investigative techniques to follow a crimes’ money trail, wherever it takes them, back to the perpetrator. Now, with today’s sentencing, these defendants will begin paying the price for stealing from the taxpayers.”

 

Today, U.S. District Judge Marina Garcia Marmolejo ordered Usoh to serve a total of 96 months in federal prison, while Jubril was sentenced to a 52-month-term of imprisonment. Both men will also serve three years of supervised release following completion of their prison terms. The court further ordered they pay more than $265,000 in restitution. At the hearing, additional evidence was presented including the impact that the victims had suffered as the result of the crimes. In handing down the sentences, Judge Marmolejo said the hearing was about an appropriate and just punishment for the defendants’ behavior. The judge increased each man’s prison sentence, telling them that the recommendations provided to the court did not begin to adequately address all of the harm that they had caused the victims in the case.

 

From February through September 2015, Usoh and Jubril conspired to use stolen personal identifying information to file fraudulent tax returns claiming more than $1.8 million in refunds. They arranged for the refunds to be direct deposited into one of more than 25 bank accounts they had opened in cities across Texas, including Killeen, Odessa, Midland and Del Rio. The U.S. Treasury paid out more than more than $675,000 before the scheme was discovered. At least 230 taxpayers were the victims of identity theft as a result of the pair’s scheme.

 

Both men will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

 

IRS - Criminal Investigation conducted the investigation. Assistant U.S. Attorney Mike Eaton is prosecuting the case.

HOUSTON – A 49-year-old Houston man has been ordered to federal prison for more than 21 years as a result of his convictions for two counts of bank robbery, one count of attempted bank robbery and one count of escape, announced Acting U.S. Attorney Abe Martinez. In May 2016, a federal jury sitting in Houston convicted Henry Lee London Jr. following a three-day trial and approximately five hours of deliberation.

 

Today, U.S. District Judge Melinda Harmon ordered he serve a total of 262 months in federal prison. The sentence included 240 months for the first bank robbery which will run concurrently to 60 months for the escape. He also received 22 months for each of the other two bank robberies which will served concurrently to each other but consecutive to the other term. The judge noted that London had two prior federal bank robbery convictions which made him a career offender.

 

“This is exactly the kind of criminal we are targeting with our collaborative Houston Law Enforcement Violent Crime Initiative announced yesterday,” said Martinez. “Reduction of violent crime is important to the community and this sentence reflects the severity of consequences to those that put our citizens at risk.”

 

During the trial, the jury heard that London escaped from the Leidel Sanction Center on Commerce Street in Houston on March 20, 2014, where he was serving the remainder of his federal sentence for the previous bank robberies. He was wearing a plain blue baseball hat, black shirt, a tan backpack and shoes. Shortly thereafter, a man wearing the same clothing robbed the BBVA Compass bank on 43rd Street in Houston. The robber handed a teller a demand note that read “This is a robbery give large bills.”

 

Four days later, a man wearing the same clothing and plain blue baseball hat attempted to rob an IBC bank on Katy Freeway in Houston. He was unsuccessful. The teller testified that she was trying to get the money but the robber became frustrated and left. Less than an hour later, the same man wearing the same clothes and plain blue baseball hat robbed the Comerica Bank on Highway 6 South in Houston.

 

The jury saw videos and photos from each of the robberies and heard testimony from 10 witnesses. Three of the witnesses knew London well from his personal life and were able to identify him in all of the robberies.

 

London’s defense did not dispute the fact that he escaped from the halfway house. They also did not dispute that the banks were robbed, but contended London was not the robber. The jury was not convinced and found him guilty on all counts.

 

He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

 

The FBI Bank Robbery Task Force which included the U.S. Marshals Service, sheriff’s offices in Harris and Fort Bend Counties and the Houston Police Department conducted the investigation. Assistant U.S. Attorneys Jennie Basile and Jill Stotts are prosecuting the case.

McALLEN, Texas – A former U.S. Postal Service (USPS) carrier has been ordered to federal prison for receiving bribe money in exchange for providing addresses of postal ballot recipients, announced Acting U.S. Attorney Abe Martinez.

 

Noe Olvera, a 44-year-old resident of Mission, pleaded guilty March 7, 2017, admitting he accepted $1,000 for providing the addresses in relation to the Hidalgo County Sheriff’s race in 2014.

 

Today, U.S. District Judge Micaela Alvarez handed Olvera an 18-month sentence to be immediately followed by three years of supervised release. In handing down the sentence, Judge Alvarez noted the problems with corruption in this community and stated that it was so prevalent that some people had equated the area with a third world country. The court stated that she intended this sentence to help deter others from committing acts of corruption in the local community in the future, knowing that imprisonment was a likely outcome for them as well.

 

It is a violation of law and official duty for Postal Service employee to provide a list of postal patrons names and/or addresses to another person.

 

On or about Oct. 15, 2014, Olvera provided a list of names and addresses of postal patrons on his route in Mission who received ballots during the Democratic primary. He accepted the $1,000 payment while on duty in his official vehicle and in his postal carrier uniform.

 

Olvera 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 USPS-Office of Inspector General conducted the investigation with assistance of the FBI. Assistant U.S. Attorneys David A. Lindenmuth and Roberto “Bobby” Lopez are prosecuting the case.

McALLEN, Texas ‐ A former Border Patrol (BP) agent has been convicted of making a false statement regarding a narcotics seizure, announced Acting U.S. Attorney Abe Martinez. Eduardo Bazan, 49, Edinburg, Texas, pleaded guilty today.

 

As part of an ongoing investigation, law enforcement learned that a 66-kilogram load of cocaine that Border Patrol seized in 2007, may have been staged with sham, or diluted, narcotics to allow drug traffickers to steal the original narcotics from unwitting sources of supply.

 

On Oct. 31, 2016, Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) interviewed Bazan who had been a Border Patrol agent assigned to the McAllen Border Station. He falsely stated that in February 2007, he had unsuccessfully attempted to apprehend individuals running from a vehicle. Upon returning to that vehicle, he saw other agents recovering the bundles of cocaine.

 

On Nov. 1, 2016, Bazan admitted he had lied to agents and that the load vehicle had been abandoned. Bazan ran from the scene to make other agents believe the vehicle had been occupied. Bazan further admitted to receiving $8,000 for assisting the drug traffickers with the staged seizure.

 

U.S. District Judge Randy Crane accepted the plea and has set sentencing for Sept. 12, 2017. At that time, he faces up to five years in federal prison and a possible $250,000 maximum fine. He was permitted to remain on bond pending that hearing.

 

HSI conducted the investigation. Assistant U.S. Attorney Kristen Rees is prosecuting the case.

HOUSTON – A 34-year-old Cypress man entered a guilty plea today to the coercion and enticement of a minor, announced Acting U.S. Attorney Abe Martinez.

 

On Nov. 19 and 20, 2015, Christopher Ray Nunes communicated through the texting application know as KIK with someone he believed to be a 15-year-old girl. During those conversations, he detailed his intended plans to engage in sexual acts with her.

 

On Nov. 20, 2015, Nunes drove from Cypress to Fort Bend County for the purpose of engaging in a sexual act with the girl. He was taken into custody upon his arrival. At the time of his arrest, Nunes was in possession of the phone on which the sexually explicit KIK chats occurred.

 

U.S. District Judge Melinda Harmon accepted the plea and set sentencing for Oct. 13, 2017. At that time, Nunes faces a minimum of 10 years and up to life in federal prison and a possible $250,000 maximum fine. Nunes will also have to register as a sex offender and adhere to any special conditions imposed at sentencing in regard to his Internet usage and proximity to children.

 

The FBI and the Houston Metro Crimes Against Children Task Force conducted the investigation. Assistant U.S. Attorney Sherri L. Zack is prosecuting the case.

 

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."

 

LAREDO, Texas – A 54-year-old undocumented Mexican National has been convicted of assaulting a Border Patrol agent, announced Acting U.S. Attorney Abe Martinez. A federal jury in Laredo returned the verdicts today against Miguel Cabrera-Rangel following a two-day trial and less than five hours of deliberation.

 

During trial, the jury heard testimony from a Border Patrol (BP) agent who was investigating a report of possible undocumented aliens on a ranch near Hebbronville. He came upon a group of aliens and attempted to apprehend them. Cabrera was one of them and engaged in a struggle with the agent and gained control of the agent’s service flashlight. Cabrera punched the agent in the face and struck him with the flashlight, causing a bilateral fracture of the nose along with lacerations and contusions. Cabrera fled, but was later apprehended on a fishing boat in Copano Bay off Corpus Christi.

 

U.S. District Judge Diana Saldaña presided over the trial will set sentencing at a later date. At that time, Cabrera faces up to eight years imprisonment and a possible $250,000 maximum fine. Cabrera has been in custody since his arrest where he will remain pending that hearing.

 

FBI investigated the case in conjunction with BP. Assistant U.S. Attorneys Michael Bukiewicz and Christopher Coker prosecuted the case.

On June 27, Judge Vanessa D. Gilmore of the U.S. District Court for the Southern District of Texas entered an order that revoked the naturalized U.S. citizenship of a child sex abuser, restrained and enjoined him from claiming any rights, privileges, or advantages of U.S. citizenship, and ordered him to immediately surrender and deliver his Certificate of Naturalization and any other indicia of U.S. citizenship to federal authorities, the Justice Department announced.

 

“The Justice Department is committed to preserving the integrity of our nation’s immigration system,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “We will aggressively pursue denaturalization in cases where individuals lie on their naturalization applications, especially in a circumstance like this one, which involved a child sex abuser. Civil denaturalization cases are an important law enforcement tool for protecting the public, including our children.”

 

Jose Arizmendi, 54, a native of Mexico, pleaded guilty in April 1996 to aggravated sexual assault of a child in the District Court of Harris County, Texas. When Arizmendi applied for naturalized citizenship later that month and again when he was interviewed in connection with his application in October 1996, he answered “no” when asked if he had “ever been arrested, cited, charged, indicted, convicted, fined, or imprisoned for breaking or violating any law or ordinance excluding traffic regulations.” Relying on this answer, the U.S. government granted his naturalization application and Arizmendi became a U.S. citizen later that year. When the Department of Justice filed a complaint in federal court to initiate denaturalization proceedings in February 2015, Arizmendi was serving an 18-year prison sentence in Mexico for a separate sex offense of rape that he committed in that country.

 

To perfect service of process on Arizmendi and bring him within the jurisdiction of the U.S. District Court for the Southern District of Texas, the Department’s trial team invoked the Hague Convention on the Service Abroad of Judicial and Extrajudicial Documents in Civil or Commercial Matters, commonly referred to as the “Hague Service Convention,” with the Mexican government to serve the complaint on Arizmendi in a Mexican prison. Judge Gilmore ruled that Arizmendi’s Texas conviction precluded him from demonstrating the requisite good moral character he needed to qualify for U.S. citizenship at the time he naturalized. Judge Gilmore also ruled that he did not meet the requirements for naturalization and unlawfully procured his citizenship because he concealed his conviction from federal immigration authorities.

 

“Applications for naturalization must be candid with all material facts,” said Acting U.S. Attorney Abe Martinez for the Southern District of Texas. “Like in this case, failing to disclose material data should result in denaturalization.”

 

U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Civil Division’s Office of Immigration Litigation, District Court Section (OIL-DCS) conducted the investigation. Trial Attorney Troy Liggett of OIL-DCS’s National Security and Affirmative Litigation Unit and Assistant U.S. Attorney Adam Goldman of the U.S. Attorney’s Office for the Southern District of Texas jointly prosecuted the case with support from Paralegal Specialist Judith Cardona.

 

HOUSTON - On June 27, Judge Vanessa D. Gilmore of the U.S. District Court for the Southern District of Texas entered an order that revoked the naturalized U.S. citizenship of a child sex abuser, restrained and enjoined him from claiming any rights, privileges or advantages of U.S. citizenship, and ordered him to immediately surrender and deliver his Certificate of Naturalization and any other indicia of U.S. citizenship to federal authorities, the Justice Department announced.

 

“The Justice Department is committed to preserving the integrity of our nation’s immigration system,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “We will aggressively pursue denaturalization in cases where individuals lie on their naturalization applications, especially in a circumstance like this one, which involved a child sex abuser. Civil denaturalization cases are an important law enforcement tool for protecting the public, including our children.”

 

Jose Arizmendi, 54, a native of Mexico, pleaded guilty in April 1996 to aggravated sexual assault of a child in Harris County. When Arizmendi applied for naturalized citizenship later that month and again when he was interviewed in connection with his application in October 1996, he answered “no” when asked if he had “ever been arrested, cited, charged, indicted, convicted, fined or imprisoned for breaking or violating any law or ordinance excluding traffic regulations.” Relying on this answer, the U.S. government granted his naturalization application and Arizmendi became a U.S. citizen later that year. When the Department of Justice filed a complaint in federal court to initiate denaturalization proceedings in February 2015, Arizmendi was serving an 18-year prison sentence in Mexico for a separate sex offense of rape that he committed in that country.

 

To perfect service of process on Arizmendi and bring him within the jurisdiction of the U.S. District Court for the Southern District of Texas, the Department’s trial team invoked the Hague Convention on the Service Abroad of Judicial and Extrajudicial Documents in Civil or Commercial Matters, commonly referred to as the “Hague Service Convention,” with the Mexican government to serve the complaint on Arizmendi in a Mexican prison. Judge Gilmore ruled that Arizmendi’s Texas conviction precluded him from demonstrating the requisite good moral character he needed to qualify for U.S. citizenship at the time he naturalized. Judge Gilmore also ruled that he did not meet the requirements for naturalization and unlawfully procured his citizenship because he concealed his conviction from federal immigration authorities.

 

“Applications for naturalization must be candid with all material facts,” said Acting U.S. Attorney Abe Martinez for the Southern District of Texas. “Like in this case, failing to disclose material data should result in denaturalization.”

 

U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Civil Division’s Office of Immigration Litigation, District Court Section (OIL-DCS) conducted the investigation. Trial Attorney Troy Liggett of OIL-DCS’s National Security and Affirmative Litigation Unit and Assistant U.S. Attorney Adam Goldman of the U.S. Attorney’s Office for the Southern District of Texas jointly prosecuted the case with support from Paralegal Specialist Judith Cardona.

HOUSTON – Houston area federal, state and local law enforcement agencies came together today to announce a collaborative initiative to proactively fight violent crime across the Greater Houston area. The Houston Law Enforcement Violent Crime Initiative brings together personnel from 10 area law enforcement agencies to not only augment investigative and prosecutorial efforts, but also to enhance collaborative training and community outreach efforts.

 

Acting U.S. Attorney Abe Martinez made the announcement along with Tom Berg, First Assistant District Attorney of the Harris County District Attorney’s Office, Chief Art Acevedo of the Houston Police Department (HPD), Chief Deputy Edison Toquica of the Harris County Sheriff’s Office (HCSO), Special Agent in Charge Perrye K. Turner of the FBI, Special Agent in Charge Fred Milanowski of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Deputy Special Agent in Charge Sean McElroy of Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Chief Deputy U.S. Marshal Richard Hunter of the U.S. Marshals Service, Commander Philip D. Steen of the Texas Department of Public Safety (DPS), Special Agent in Charge Joseph Arabit of the Drug Enforcement Administration and Administrator George Rhyne of Texas Anti-Gang.

Authorities have also strived to work together in the interests of justice. The announcement today included details about the initiative designed to enhance those partnerships and collaborate on the best avenues for targeting and ultimately prosecuting the most violent offenders in the community. Such specifics included information about intelligence integration, strategic support, working groups and resources, among others.

Aa part of the effort, additional training will also be provided among the agencies. For example, there is a violent crime training initiative which will provide numerous classes to educate agents and officers on the details of developing a violent crime case using the Hobbs Act, VICAR and RICO. The trainings are designed for front line investigators and mid-level managers of patrol and robbery units. The first of such trainings took place earlier this month and trained approximately 60 officers.

As part of the overall effort, several agencies will work together on initiatives designed to target violent offenders in Houston. One such operation involves HCSO and DPS and has already begun which has targeted high-crime areas along the 1960 corridor.

The ATF also provided information today regarding their National Integrated Ballistic Information Network which they use to identify shooters and connect specific guns to multiple crime scenes. The network is a system of 158 sites used by federal, state and local law enforcement and is the most advanced forensic tool available to law enforcement to identify criminals who repetitively use guns to commit crimes. They also have a joint initiative with HPD for intelligence-driven identification of violent offenders and gun-related crime. The goal is to not only “connect the dots” between multiple pieces of information relating to violent crime but also prepare strong cases for state and federal prosecution of these offenders.

HPD also has a Violent Offenders Squad (VOS) which investigates commercial business robberies, take-over style robberies, serial robberies juvenile-related and gang-related robberies in a more innovative and creative manner. It will also provide support to other investigators who are conducting follow-up on high-volume or highly-organized suspects committing serial cases. Further, HPD has a Criminal Apprehension Team (CAT) which will use proactive, reactive and analytical techniques to prevent and suppress serial criminal activity. CAT will identify and target such repeat offenders by proactively investigating their activities and apprehending them for crimes they commit.

The announcement today comes on the heels of news that Houston was recently named as one of 12 cities to join the Department of Justice’s newly-organized National Public Safety Partnership (PSP). As part of that effort, advisers and consultants will provide assistance in capacity building, data collection and analysis, proposed training and technical assistance and community outreach. The partnership provides a framework for enhancing federal support of state, local and tribal law enforcement officials and prosecutors as they aggressively investigate and pursue violent criminals, specifically those involved in gun crime, drug trafficking and gang violence.

 

The overall goal of the collaborative initiative is to reduce the amount of violent crime in the city and improve the quality of life for the citizens of Houston.

BROWNSVILLE, Texas – A 24-year-old woman from Matamoros, Tamaulipas, Mexico has been ordered to federal prison following her conviction on two different assaults of federal officers, announced Acting U.S. Attorney Abe Martinez. Maribel Tejeda-Fomperosa pleaded guilty in February 2017.

 

Today, U.S. District Judge Rolando Olvera ordered Tejeda-Fomperosa to serve 21 months in federal prison. Not a U.S. citizen, she is expected to face deportation proceedings following her release from prison. Tejeda-Fomperosa’s sentence includes upward adjustments or increases in her calculated sentencing guideline range because she was found to have made physical contact with the victims and because each victim sustained bodily injury. Tejeda-Fompersa also received an upward adjustment because she assaulted two different federal officers.

 

Border Patrol (BP) agents arrested Tejeda-Fomperosa on Oct. 24, 2016, after she made an illegal entry into the United States by wading across the Rio Grande River near Brownsville. She became physically and verbally aggressive after being placed in a holding cell following that arrest. As a result, she physically assaulted a BP agent attempting to restrain her and spat at a second agent. The evidence also indicated that on Nov. 15, 2016, while in custody for the Oct. 24, 2016, assault, Tejeda-Foromperosa again became physically and verbally aggressive and assaulted a corrections officer while being held at the Willacy County Regional Detention Center. Tejeda-Frompersoa was indicted separately for both assaults.

 

The FBI conducted the investigation. Assistant U.S. Attorney Angel Castro is prosecuting the case.

CORPUS CHRISTI, Texas - A 41-year-old inmate at the Three Rivers Correctional Institution has been charged with possessing a prohibited object in prison, announced Acting U.S. Attorney Abe Martinez.

 

A grand jury returned the one-count indictment against Alejandro Corredor today. He is expected to make his initial appearance before a U.S. magistrate judge in the near future.

 

The indictment alleges Corredor, of Kansas City, Missouri, possessed Suboxone, which is a prohibited object and controlled substance used to treat pain. He had been incarcerated at the prison following his conviction for his role in one of the largest cocaine trafficking rings in the Kansas City area. He was serving a 30-year-prison sentence.

 

If convicted of the new charges, Corredor faces up to 20 years in federal prison.

 

The FBI conducted the investigation. Assistant U.S. Attorney Hugo R. Martinez 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 – A 47-year-old woman appeared in federal court today for allegedly smuggling a counterfeit corticosteroid known as Diprospan into the United States and trafficking the misbranded and counterfeit drug through a store known as Naturavida, announced Acting U.S. Attorney Abe Martinez.

 

The criminal complaint alleges that Carolina Aguilar Rodriguez aka “Doctora” sold the counterfeit Diprospan to undercover federal agents on at least five occasions. According to the charges, Rodriguez was not licensed to dispense prescription medications in Texas, and Naturavida was not licensed as a Texas pharmacy. Rodriguez allegedly made a deal to sell 100 vials of Diprospan to an undercover federal agent in May and accepted a $1,200 deposit. However, the complaint alleges she subsequently pulled out of the deal after a police raid on another supplier.

 

The criminal complaint alleges the drugs came from El Salvador. Diprospan is not approved for use or sale in the United States and is not manufactured in the United States.

 

Immigration and Custom’s Enforcement’s Homeland Security Investigations, U.S. Food and Drug Administration - Office of Criminal Investigations and the Houston Police Department conducted the investigation. Assistant U.S. Attorney Julie Redlinger is prosecuting the case.

 

A criminal complaint is a formal accusation of criminal conduct, not evidence.

A defendant is presumed innocent unless convicted through due process of law.

CORPUS CHRISTI, Texas – A 66-year-old Corpus Christi man has been indicted on charges of possession of child pornography, announced Acting U.S. Attorney Abe Martinez.

 

A grand jury returned an indictment against Bruce Harold Hendler today. He was originally arrested June 1, 2017, upon the filing of a criminal complaint. He later appeared before U.S. Magistrate Jason B. Libby, at which time he was ordered into custody pending further criminal proceedings. He is expected to make his initial appearance on the indictment in the near future.

 

According to the criminal complaint, Hendler was observed acting suspiciously with a child at a local church and contacted authorities. The investigation led to a search warrant conducted on his digital devices on which forensic analysis identified more than 2,000 images of child pornography, according to the charges.

 

If convicted, Hendler faces up to 20 years in federal prison as well as maximum fine of $250,000 fine. Upon completion of any prison term imposed, he also faces a maximum lifetime term of supervised release and he will be required to register as a sex offender.

 

The Corpus Christi Police Department – Internet Crimes Against Children Task Force and Immigration and Custom’s Enforcement’s Homeland Security Investigations conducted the investigation.

 

This case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."

 

An indictment is a formal accusation of criminal conduct, not evidence.

A defendant is presumed innocent unless convicted through due process of law .

HOUSTON – A 31-year old resident of Webster has entered a guilty plea to one count of receipt of child pornography and one count of possession of child pornography, announced Acting U.S. Attorney Abe Martinez.

 

Jake Nicholas Luera came to the attention of law enforcement following an investigation dubbed Operation Back to School in August 2015 which targeted the online solicitation of minors. During the operation, Luera engaged in online chats with an undercover officer posing as a 15-year-old female and drove to a location where he believed he would make sexual contact with her.

 

Following his arrest, authorities searched his home in Webster. They discovered and seized various items of computer media which a forensic analysis revealed more than 4,000 images and 75 videos of child pornography involving young children engaged in sexually explicit conduct. These videos included children under the age of 12 involved in sadistic conduct, including bondage.

 

During his plea today, Luera admitted he received and saved the images and videos on multiple storage devices.

 

U.S. District Judge David Hittner has set sentencing for Sept. 20, 2017. At that time, Luera 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.

 

The Houston Metro Internet Crimes Against Children Task Force conducted the investigation at Pearland Police Department in conjunction with Immigration and Customs Enforcement’s Homeland Security Investigations.

 

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."

CORPUS CHRISTI, Texas – During sentencing hearings that occurred over the course of the last two days, several members of the Texas “Mexikan” Mafia (TMM) have been ordered to significant terms in prison for their roles in a Racketeer Influence Corrupt Organization (RICO) conspiracy, announced Acting U.S. Attorney Abe Martinez. The hearings began yesterday and concluded today before Senior U.S. District Judge John D. Rainey.

 

Gilberto Garcia, 37, of Corpus Christi ultimately received a sentence of 222 months in federal prison. Juan Felipe Bazan, 45, of Gregory; Rogelio Ramirez, 33, of Corpus Christi, Eusebio Castillo, 37, of Taft, and Roman Jose Zapata II, 33, of Corpus Christi, received respective sentences of 216, 110, 70, and 70 months in prison. Judge Rainey ordered Pedro Gonzales, 42, of Aransas Pass, to serve a 105-month-term, while David Gonzales, 36, of Aransas Pass, will serve 84 months.

 

All will also serve a three-year-term of supervised release following completion of their sentences.

 

“The FBI and our law enforcement partners will not allow organized criminal activities to wreak havoc our local communities,” said Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office. “We will fight organized crime wherever it may surface and continue to hold accountable those who seek to profit through illegal means.”

 

All of the defendants were charged in a conspiracy involving underlying criminal activities such as narcotics distribution, extortion and money laundering from Nov. 1, 2013, through May 30, 2014.

 

Bazan was found to be a captain of the TMM, while Ramirez and Garcia were lieutenants. Pedro Gonzales was a sergeant. The remainder were “soldiers” or associates of TMM.

 

At a hearing that began last week, Judge Rainey heard testimony regarding the TMM, including its rules, which are included in the TMM “constitution.” The constitution states that the TMM is a criminal organization that deals in drugs, assassination contracts, prostitution, robbery and firearms. It also states that 10 percent of the profits from any business or interest shall be contributed to the organization, which is known as “the dime” and is the TMM’s primary source of income. The TMM collects “the dime” from members, prospective members or sympathizer. TMM members and prospective members often earn their income by threatening individuals with harm if they do not pay the TMM member for protection from other threats or by extorting others who traffic in illegal drugs. TMM members, prospective members and sympathizers also earn their income by trafficking in illegal drugs such as heroin, methamphetamine and cocaine.

 

Several others were previously sentenced to varying offenses in relation to the case. Their sentences ranged from 18 months to 80 months in federal prison. Other TMM members who have pleaded guilty to the RICO conspiracy include David Joe Maseda Jr., 38, of Houston; Jose Mireles, 34, of Ingleside; Robert Anthony Trevino, 52, Jose Jesus Toledo, 41, Abelardo Pena, 49, all of Victoria; and Bruce Lee Cisneros, 41, of Robstown. They, as well as Daisy Cruz Ortiz, 28, of Aransas Pass, who previously pleaded guilty to conspiring to possess with intent to distribute cocaine base (crack cocaine) with Maseda, are still pending their sentencing hearings.

 

With the exception of Ortiz, who had been previously released on bond, all have been and will remain in custody pending transfer to U.S. Bureau of Prisons facilities to be determined in the near future.

 

The FBI; Bureau of Alcohol, Tobacco, Firearms and Explosives; Drug Enforcement Administration; U.S. Marshals Service; Texas Department of Public Safety; Customs and Border Protection; Victoria County Sheriff’s Office; and police departments in Corpus Christi, Port of Corpus Christi, Victoria, Portland, Aransas Pass and Ingleside all assisted in the joint investigation. Assistant U.S. Attorney Michael Hess is prosecuting the case.

HOUSTON – A 24 year-old Houston man has been ordered to federal prison following his conviction in the armed robbery of a Capital One Bank and for using a firearm during and in relation to a crime of violence, announced Acting U.S. Attorney Abe Martinez. A Houston federal jury convicted Trent Davis on Jan. 25, 2017, following two days of trial and approximately an hour of deliberation.

 

Today, U.S. District Judge David Hittner handed Davis a sentence of 20 years for the bank robbery plus an additional seven consecutive years for the firearms charge as well as another two consecutive years for violating conditions of supervised release for a previous bank robbery conviction. Following his 29-year-prison sentence, Davis will also serve five years of supervised release. In handing down the sentence, Judge Hittner noted that the sentence was a reflection of the seriousness of the offense, the violence and physical threat to the victims, that Davis was a repeat bank robber and is an absolute menace to the community.

 

On April 26, 2016, Davis and co-defendant Derrick Muhammad, 29, of Houston, robbed the Capital One Bank located at 1514 West Sam Houston South in Houston. The men entered the facility, at which time Davis jumped the counter, pointed a pink gun at the teller and demanded he open the vault. Upon fleeing the bank, two dye packs exploded within the bag holding the money which was then thrown from the car. A witness in a nearby building saw the two masked men exiting the bank and photographed the vehicle as the dye pack exploded.

 

Davis used his sister’s car during the robbery. During trial, an FBI chemist testified that a substance found in that vehicle had chemicals found only in dye packs.

 

The lead teller, on the date of the robbery, told the jury how he was forced to empty the vault at gunpoint. He testified that the robbers were wearing hoodies and that one of them used a pink gun in the robbery.

 

Davis was apprehended approximately a month after the robbery in possession of a pink gun that had been painted black.

 

Two witnesses testified about jail house conversations they had with Davis and claimed Davis confessed to the crime, that he used his sister’s car and about the pink gun being painted. The jury also heard from Muhammad who testified about the details of the robbery. He previously pleaded guilty and was sentenced May 26, 2017, to 108 months in prison.

 

Davis will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

 

The FBI Violent Crime Task Force conducted the investigation, which included agents and officers of the FBI, Harris County Sheriff’s Office and Houston Police Department. Assistant U.S. Attorneys Celia Moyer and Jill Stotts prosecuted the case.

LAREDO, Texas – A 35-year-old resident of San Antonio was ordered to federal prison following his conviction of fleeing or evading checkpoint operated by a federal law enforcement agency, announced Acting U.S. Attorney Abe Martinez and Acting Assistant Chief Patrol Agent Jose Martinez of the Laredo Sector Border Patrol. Mike Ramirez pleaded guilty Feb. 7, 2017.

 

On June 26, 2017, U.S. District Judge Marina Garcia Marmolejo ordered Ramirez to federal prison for 19 months. The sentence will be immediately followed by three years in federal prison.

 

“We remain steadfast in our commitment in securing the border and keeping the Laredo and surrounding communities safe by working with the Assistant United States Attorney’s Office to prosecute those who break the law,” said Acting Assistant Chief Patrol Agent Martinez.

 

On Aug. 10, 2016, Ramirez approached the Border Patrol Checkpoint on Interstate Highway 35, north of Laredo, as the driver of a 2007 Dodge Durango. Upon arrival, the inspecting agent noticed two sealed containers in the rear of the vehicle. A canine alerted to the presence of concealed humans and/or narcotics and the agent advised Ramirez to proceed to the secondary inspection area. Instead, Ramirez did not stop at secondary and fled north away from the checkpoint at a high rate of speed. Pursuing agents were unable to catch up to Ramirez nor were Laredo Police Department and Webb County Sheriff’s officers who had been notified.

 

He was later arrested several months later at his sister’s home in San Antonio.

 

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.

Immigrations and Customs Enforcement’s Homeland Security Investigations (HSI) and BP conducted the investigation. Officers with the San Antonio Police Department and Bexar County Sheriff assisted in the apprehension. Assistant U.S. Attorney Christopher dos Santos prosecuted the case.

LAREDO, Texas – A 35-year-old San Antonio man has been ordered to federal prison following his conviction of conspiracy and possession with intent to distribute methamphetamine, announced Acting U.S. Attorney Abe Martinez. Carlos Pena pleaded guilty May 1, 2017.

 

Today, U.S. District Judge Diana Saldaña sentenced Pena to serve 110 months in federal prison to be immediately followed by three years of supervised release.

 

On Feb. 13, 2017, Pena took part in a conspiracy to smuggle 2.6 kilograms of methamphetamine through the U.S. Border Patrol checkpoint located 29 miles north of Laredo on International Highway 35. He was driving a grey Pontiac G6. In an aftermarket compartment in the vehicle’s frame near the gas tank, authorities discovered five packages wrapped in brown tape containing 2.6 kilograms of methamphetamine.

 

Pena 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 Border Patrol and the Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorney Jorge Vela and José Angel Flores Jr. prosecuted the case.

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.

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.

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.

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.

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.

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.