Southern District of Texas
Press releases recorded for this federal judicial district.
Laredoans Get Massive Sentences for Conspiracy to Kidnap Illegal AliensRead the Press Release
LAREDO, Texas – Three men have been ordered to prison following their convictions of conspiracy to kidnap illegal aliens, announced Acting U.S. Attorney Abe Martinez. Angel Alexis Diaz, 20, Jose Israel Diaz, 42, and Julio Osorio, 42, all of Laredo, pleaded guilty Sept. 8, 2016.
Today, U.S. District Judge Marina Garcia Marmolejo ordered Jose Diaz to serve a total of 360 months in federal prison, while Alexis Diaz and Osorio received respective sentences of 262 months and 292 months. The sentences will be immediately followed by five years of supervised release.
Eight Mexican Nationals had arranged to be smuggled into the U.S. They claimed that after entering the country, they were transported to a residence in Laredo where they stayed for approximately two weeks. They were then transported to a second location where the three defendants then held them against their will, assaulted and extorted them for additional smuggling fees. They were also forced to undress and were beaten, held hostage and forced to contact family members to pay a ransom.
All three defendants have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation along with the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Christopher dos Santos is prosecuting the case.
Five Additional Defendants Charged in Securities Fraud ConspiracyRead the Press Release
HOUSTON – Five additional individuals have been charged for their role in a $6.8 million securities fraud “pump-and-dump” conspiracy, announced Acting U.S. Attorney Abe Martinez.
A federal grand jury returned the original indictment Sept. 15, 2016, charging Andrew Ian Farmer, 38, and Thomas Galen Massey, 46, for their roles in a securities fraud scheme involving the stock of Chimera Energy Corp.
A superseding indictment was returned by the grand jury on April 26, 2017, and charges five new 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. All five new defendants are charged with one count of conspiracy to commit wire fraud and nine counts of wire fraud.
Brotherton and Grob made their initial appearances this afternoon, at which time the indictment was unsealed. Carolyn Austin and Eddie Austin are expected to make their appearances in federal court before U.S. Magistrate Judge Frances Stacy at 2:00 p.m. Thursday, May 4, while Sieck is expected to appear in Houston sometime next week.
In a typical “pump-and-dump” fraud scheme, the perpetrators publish false and misleading information about a company 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 Chimera Energy Corp. by publishing false and misleading information about the company. In the conspiracy, the defendants allegedly published press releases, public filings and public advertisements that falsely claimed Chimera had licensed a new technology called “Non-Hydraulic Extraction,” which purported to be a new method of extracting oil by fracturing without using water. The defendants also published false press releases claiming that they had a business relationship with Petroleos Mexicanos, aka PEMEX, the government-owned oil producing company of Mexico, according to the charges. As a result of the false claims, the defendants allegedly defrauded investors that purchased shares of Chimera Energy Corp. out of a total of approximately $6.8 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 26, 2017. The remaining defendants are presumed innocent unless convicted through due process of law.
The FBI conducted the investigation with the assistance of the Securities and Exchange Commission and Financial Industry Regulatory Authority. Assistant U.S. Attorney Justin R. Martin is prosecuting the case.
Six Ordered to Prison for Laundering Millions for Drug CartelRead the Press Release
McALLEN, Texas – Four local residents and two Mexican nationals have been ordered to federal prison for their respective roles in laundering drug proceeds, announced Acting U.S. Attorney Abe Martinez.
Roosevelt Faz, 49, and Ted Cantu, 48, both of Donna; Sandra Haro, 37, of Edinburg; Maria Elena Bonilla-Torres, 41, of Puente de Camciclan, Nayarit, Mexico; Guillermo Trevino, 44, of Weslaco; and Erwin Rolando Contreras-Mata, 27, of Reynosa, Tamaulipas, Mexico, all pleaded guilty Aug. 31, 2016.
U.S. District Judge Micaela Alvarez ordered Faz to serve a 140-month sentence, while Haro, Trevino and Bonilla-Torres will serve 130, 80 and 72 months in prison, respectively, at a hearing that concluded late yesterday. Judge Alvarez also ordered Faz, Trevino and Haro to pay a money forfeiture of $1,825,000. An additional $1,028,006 was seized during the investigation. The forfeiture order was the result of two days of testimony and evidence presented Oct. 24 and 31, 2016, which established that this group had been working together to launder drug proceeds since 2014 and that they had successfully laundered the additional $1,825,000. Also sentenced yesterday were Contreras-Mata and Cantu who were ordered to serve 46 and 38 months in prison, respectfully.
At the time of his plea, Faz admitted to coordinating the pick-up of drug proceeds in cities such as Atlanta, Georgia, and St. Louis, Missouri, and that he did so for Javier Reyna, another indicted defendant. Cantu and Trevino were truck drivers who admitted to picking up proceeds in Atlanta and St. Louis, respectively, at Faz’s direction. Contreras-Mata picked up drug proceeds from Faz on behalf of Javier Reyna. Bonilla-Torres handled the stash house in McAllen owned by Haro where the drug proceeds were stored prior to being smuggled into to Mexico, while Haro admitted to handling the communications between Reyna and the individual receiving the money in Mexico.
Cantu and Contreras-Mata each agreed to forfeit the money seized directly from them in the course of the investigation as part of their respective plea agreements.
Bonilla-Torres and Contreras-Mata have been and will remain in custody. Faz and Haro were taken into custody following the hearing yesterday, while Trevino and Cantu were permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
Javier Reyna, 44, of Penitas, 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) in McAllen at 956-992-8400.
The DEA, Texas Department of Public Safety, IRS-Criminal Investigation and Border Patrol conducted the Organized Crime Drug Enforcement Task Force investigation dubbed Operation Emerald Chariots. Assistant U.S. Attorney Juan F. Alanis is prosecuting the case.
Local Resident Gets Significant Sentence for Meth TraffickingRead the Press Release
HOUSTON – A 37-year-old Mexican national who resided in Huntsville has been ordered to federal prison for more than 17 years following his conviction of possessing with the intent to distribute methamphetamine, announced Acting U.S. Attorney Abe Martinez. Rando Saavedra-Ramirez pleaded guilty Sept. 12, 2016.
Today, U.S. District Judge Melinda Harmon sentenced Saavedra-Ramirez to 210 months in federal prison. Not a U.S. citizen, he is expected to face deportation proceedings following his release.
Law enforcement discovered Saavedra-Ramirez would be delivering several kilograms of methamphetamine on July 14, 2015. They set up surveillance at his home and followed him as he drove away in a 2005 BMW. He arrived at a storage unit and picked up a package.
Authorities conducted a traffic stop, but Saavedra-Ramirez restarted his car and fled the scene. A high speed chase ensued with Saavedra-Ramirez travelling at speeds in excess of 150 miles per hour. He then began swerving in and out of different lanes and exited the highway.
Determining it was not safe to follow him, law enforcement continued surveillance via helicopter as Saavedra-Ramirez exited the highway, stopped at shopping plaza, took the package out and placed it on the bed of a nearby truck. He then tried to enter into a nearby business.
He was arrested before he could flee. Authorities soon discovered 2.79 kilograms of methamphetamine in the package.
Saavedra-Ramirez 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 Montgomery County Sheriff’s Office and the Drug Enforcement Administration conducted the joint investigation. Assistant U.S. Attorney Sharad S. Khandelwal is prosecuting the case.
Edinburg Man Gets More Than 24 Years for Three Child Pornography ChargesRead the Press Release
McALLEN, Texas – A 29-year-old Edinburg man has been ordered to federal prison following his convictions of production, receipt and distribution of child pornography, announced Acting U.S. Attorney Abe Martinez. Carlos Benjamin Martinez pleaded guilty Dec. 2, 2016.
Today, U.S. District Judge Randy Crane handed Martinez a total sentence of 292 months in federal prison. At the hearing, the court heard testimony from that Martinez had made several inquiries with adoption agencies expressing an interest in adopting children. He had also responded to a Craigslist posting, offering his services as a babysitter. In handing down the sentence, Judge Crane expressed his concerns regarding these inquiries. Martinez will serve the rest of his life on supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. He will also be ordered to register as a sex offender and undergo sex offender treatment.
As part of his plea, Martinez admitted to downloading and receiving child pornography and to sending emails which contained child pornography. He also admitted to performing a sexual act on a minor child while recording the incident with his cellular phone.
In March 2015, authorities were investigating an individual suspected of possessing child pornography in Massachusetts. During that time, authorities discovered Martinez had emailed several images of child pornography to that suspect. The FBI executed a federal search warrant at the Martinez residence in September 2015 and seized various electronic devices. A search warrant was also executed on an email account belonging to Martinez. A forensic analysis on those devices and email account led to the discovery of thousands of images and multiple videos of child pornography involving children who were clearly young engaged in sexually explicit conduct.
A subsequent search of his cell phone revealed a video of Martinez performing sexual intercourse on a minor child approximately 12 years of age.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation.
This case, prosecuted by Assistant U.S. Attorneys Alex Benavides and Kimberly Ann Leo, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Corpus Christi Man Pleads Guilty to Possession of Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – A 69-year-old Corpus Christi man has admitted he possessed child pornography, announced Acting U.S. Attorney Abe Martinez.
The investigation into Henry Franklin Reddick began after authorities received a CyberTipline report from The National Center for Missing & Exploited Children. The CyberTipline provides the public and electronic service providers with the ability to report online instances of child pornography. The CyberTipline report indicated that an individual using the email address of [email protected] had uploaded 79 images of suspected child pornography onto a cloud storage service.
Law enforcement was able to determine Reddick was associated with that email address and, in April 2015, agents executed a search warrant at his residence. At that time, agents seized various electronic devices during the search and a forensic analysis on those devices revealed more than 450 images and 13 videos of child pornography.
Sentencing is set for Aug. 8, 2017, before U.S. District Judge Nelva Gonzales Ramos. At that time, Reddick faces up to 20 years in federal prison and a possible $250,000 maximum fine. Upon completion of any prison term imposed, Reddick also faces a maximum of life on supervised release during which time the court can impose a number of special conditions designed to protect children and prohibit the use of the Internet.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of the Corpus Christi Police Department—Internet Crimes Against Children Task Force.
This case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez and Elsa Salinas, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Smuggler Gets Enhanced Sentence for Raping Undocumented Alien and Brandishing a MacheteRead the Press Release
McALLEN, Texas – A 53-year-old Mexican National has been ordered to federal prison for conspiring to harbor undocumented aliens, announced Acting U.S. Attorney Abe Martinez. Julio Puente-Oliva pleaded guilty Jan. 26, 2017.
Today, U.S. District Judge Micaela Alvarez sentenced Puente-Oliva to 70 months imprisonment. The court enhanced the sentence because he raped the victim and brandished a dangerous weapon during the course of the conspiracy. At the hearing, the court heard from a victim who testified how Puente-Oliva tried to forced her to consume alcohol and showed her a machete he kept underneath his mattress. She also stated that he said he would “use it if he had to.” She told the court that Puente-Oliva raped her and then threatened to kill her if she accused him of anything. In handing down the sentence, the court noted the sentence imposed was necessary to protect the public from further crimes of the defendant and to deter future criminal conduct.
From Oct. 1-3, 2016, Puente-Oliva conspired to harbor undocumented aliens in his residence in Edinburg, during which time he committed the sexual assault and threats. On Oct. 3, 2016, the victim escaped from the Edinburg stash home and ran to a nearby restaurant where she asked for police. The victim advised Edinburg Police officers that she had escaped from a stash house where she was sexually assaulted by the caretaker. She has also brought a 16-year-old undocumented alien with her who had been harbored in the same place.
Puente-Oliva 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 Edinburg Police Department conducted the investigation. Assistant U.S. Attorney Alex Benavides prosecuted the case.
Fugitive Sought in Mortgage Fraud SchemeRead the Press Release
HOUSTON – A 53-year-old Houston-area contractor, set for sentencing in a $16 million loan fraud scheme, has now been charged with failing to appear, announced Acting U.S. Attorney Abe Martinez.
Oscar Cantalicio Ortiz, who resided in Kingwood, pleaded guilty June 30, 2016, to conspiring to commit bank, mail and wire fraud. He was set for sentencing in that case Monday, April 24, 2017, but failed to appear at the hearing. Late yesterday, a federal grand jury returned a new indictment against him for failure to appear.
He is considered a fugitive and a warrant remains outstanding for his arrest. Anyone with information about his whereabouts is asked to contact the FBI at 713-693-5000.
His codefendant – Houston realtor Seung Min Santillan, aka Suzy, 57, also of Houston – pleaded guilty to the conspiracy and making false statements on a loan application in September 2016. She was sentenced earlier this month to 168 months in federal prison and ordered to pay $5,299,500 in restitution.
Ortiz and Santillan operated a mortgage fraud scheme in which they recruited straw borrowers to purchase residential properties in the Houston area. Loans were obtained from lending institutions to purchase these properties in the names and using the credit of the straw borrowers. The lenders were provided materially false information to induce them to fund these residential loans. The loans were funded and ultimately fell into default when Ortiz and Santillan failed to make all the mortgage payments as promised.
Ortiz and Santillan utilized several business entities during the execution of the scheme to defraud including Uptown Builders LLC, Americorp Builders LLC, Luxury Quality Homes LLC and Santi Investments. In recruiting straw borrowers during the scheme, the borrowers were told the residential property would be in their name for a short period while Ortiz made modifications to the property prior to reselling the house. Ortiz and Santillan promised the straw borrowers that they would handle all the costs associated with purchasing and holding these properties.
Once the loans to purchase the residence funded, one or more of the business entities Ortiz utilized would receive a large portion of the loan proceeds. This occurred even when the same property was purchased for the second time in the name of a new straw borrower. The defendants were able to take a large portion of the loan proceeds since the value of the residence was inflated with fraudulent appraisal reports.
The FBI conducted the investigation. Assistant U.S. Attorney Melissa Annis is prosecuting the case.
Corpus Christi Man Pleads Guilty to Online Solicitation of a MinorRead the Press Release
CORPUS CHRISTI, Texas – A 35-year-old resident of Corpus Christi has admitted he attempted to meet an underage girl for the purpose of sex, announced Acting U.S. Attorney Abe Martinez.
David Lee Vann appeared before U.S. Magistrate Judge Jason B. Libby and entered a guilty plea to one count of online solicitation of a minor.
In June 2016, Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) and the Corpus Christi Police Department—Internet Crimes Against Children Task Force (CCPD-ICAC) conducted a joint investigation targeting individuals involved in online solicitation of minors. Vann was communicating with a person he believed was the mother of a 14-year-old female. In reality, he was talking to an undercover agent. Vann made arrangements to meet and engage in sexual activity with the mother’s minor female child.
Vann was apprehended as he arrived at the designated meeting place, at which time he was in possession of a box of condoms and lubricant. He also admitted to authorities that he had sent messages indicating his intention to engage in sexual acts with the child. Vann was also in possession of a cellular telephone. A forensic examination of the phone resulted in the discovery of 35 images and 20 videos of child pornography.
U.S. District Judge Nelva Gonzales Ramos will impose sentencing on Aug. 17, 2017. At that time, Vann faces a minimum of 10 years and up to life in federal prison. Upon completion of any prison term imposed, he also faces a maximum of life on supervised release during which time the court can impose a number of special conditions designed to protect children and prohibit the use of the Internet.
Vann was arrested on the federal charges in November 2016. He will remain in custody pending his sentencing hearing.
The case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez and Elsa Salinas, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Conroe Man Ordered to Prison for Bank Fraud and Stealing from EmployerRead the Press Release
HOUSTON – A 45-year-old man from Conroe has been ordered to prison for bank fraud and stealing more than $484,000 from Weatherford, announced Acting U.S. Attorney Abe Martinez. Kiran Andhavarapu pleaded guilty Feb. 9, 2017.
Today, U.S. District Judge Keith P. Ellison, who accepted the guilty plea, sentenced Andhavarapu to 20 months in federal prison immediately followed by three years of supervised release. In issuing the sentence, Judge Ellison found Andhavarapu abused a position of trust as a financial controller which facilitated his commission of the offense.
The fraud involved a scheme to steal money from Andhavarapu’s employer, Weatherford, and its subsidiary, EProduction Solutions LLC. Andhavarapu opened bank accounts in the name of “EProduction Solutions” and listed himself as the owner and sole proprietor of the business. He then stole refund checks made out to and belonging to his employer and fraudulently deposited those checks in the accounts he had created.
As part of his plea, Andhavarapu admitted he stole a total of $484,873.95.
Andhavarapu will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined at a later date.
The FBI conducted the investigation. Assistant U.S. Attorney Justin R. Martin is prosecuting the case.
Three RGV Residents Plead Guilty in Illegal Kickback SchemesRead the Press Release
McALLEN, Texas – Three Rio Grande Valley residents have been convicted for their roles in receiving illegal kickback payments in exchange for the referral of patients, announced Acting U.S. Attorney Abe Martinez.
Today, Brenda De La Cruz, 39, of Mission, entered a guilty plea to conspiracy to receive illegal kickbacks before U.S. District Judge Randy Crane. At plea hearings yesterday before U.S. District Judge Micaela Alvarez, Sonia Garcia, 51, of McAllen, and Luis Manuel Garza, 39, of Brownsville, also pleaded guilty to the same offense. All were previously charged in separate criminal informations on April 10 following an operation conducted by the RGV health care fraud task force targeting Medicare fraud and the payment of illegal kickbacks.
At their respective hearings, each admitted they engaged in conspiracies to refer Medicare beneficiaries to a home health agency in exchange for illegal kickback payments.
Sentencing for both Garcia and Garza has been set for July 20, 2017. De La Cruz will be sentenced July 11, 2017. At those times, all three face a maximum punishment of five years in federal prison.
The FBI, Department of Health and Human Services ‐ Office of Inspector General (OIG), Texas Attorney General’s Medicaid Fraud Control Unit and the Texas Health and Human Services Commission – OIG conducted the investigation. Assistant U.S. Attorneys Andrew Swartz and Michael Day are prosecuting the case.
Second Indian National Pleads Guilty for Role in Multi-Million Dollar India-Based Call Center Scam Targeting U.S. VictimsRead the Press Release
An Indian national pleaded guilty today to one count of conspiracy to commit money laundering for his role in liquidating and laundering victim payments generated through various telephone fraud and money laundering schemes via India-based call centers.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Abe Martinez of the Southern District of Texas, Executive Associate Director Peter T. Edge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Inspector General J. Russell George of the U.S. Treasury Inspector General for Tax Administration (TIGTA) and Inspector General John Roth of the U.S. Department of Homeland Security Office of Inspector General (DHS OIG) made the announcement.
Ashvinbhai Chaudhari, 28, an Indian national who most recently resided in Austin, Texas, pleaded guilty before U.S. District Court Judge David Hittner of the Southern District of Texas. Sentencing is currently set for July 21, 2017.
According to admissions made in connection with the plea, Chaudhari and his co-conspirators perpetrated a complex scheme in which individuals from call centers located in Ahmedabad, India, impersonated officials from the IRS or U.S. Citizenship and Immigration Services in a ruse designed to defraud victims located throughout the United States. Using information obtained from data brokers and other sources, call center operators targeted U.S. victims who were threatened with arrest, imprisonment, fines or deportation if they did not pay alleged monies owed to the government. Victims who agreed to pay the scammers were instructed how to provide payment, including by purchasing stored value cards or wiring money, and upon payment, the call centers would immediately turn to a network of “runners” based in the U.S. to liquidate and launder the fraudulently-obtained funds.
According to his plea, since in or about April 2014, Chaudhari worked as a member of a crew of runners operating in Illinois, Georgia, Nevada, Texas and elsewhere throughout the country. At the direction of both U.S. and India-based co-conspirators, often via electronic WhatsApp text communications, Chaudhari admitted to driving around the country with other runners to purchase reloadable cards registered with misappropriated personal identifying information of U.S. citizens. Once victim scam proceeds were loaded onto those cards, Chaudhari admitted that he liquidated the proceeds on the cards and transferred the funds into money orders for deposit into various bank accounts while keeping a percentage of the victim funds for himself. Chaudhari also admitted to shipping money orders purchased with victim funds to other U.S. based co-conspirators, receiving fake identification documents from an India-based co-conspirator and using those documents to receive victim scam payments via wire transfers.
To date, Chaudhari, 55 other individuals and five India-based call centers have been charged for their roles in the fraud and money laundering scheme in an indictment returned by a federal grand jury in the Southern District of Texas on Oct. 19, 2016. Chaudhari is the second defendant thus far to plead guilty in this case.
The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
HSI, DHS-OIG and TIGTA led the investigation of this case. Also providing significant support was the Ft. Bend County, Texas, Sheriff’s Office; police departments in Hoffman Estates and Naperville, Illinois, and Leonia, New Jersey; San Diego County District Attorney’s Office Family Protection/Elder Abuse Unit; U.S. Secret Service; U.S. Small Business Administration - Office of Inspector General; IOC-2; INTERPOL Washington; U.S. Citizenship and Immigration Services (USCIS); U.S. State Department’s Diplomatic Security Service; and U.S. Attorney’s Offices in Northern District of Alabama, District of Arizona, Central District of California, Northern District of California, District of Colorado, Northern District of Florida, Middle District of Florida, Northern District of Illinois, Northern District of Indiana, District of Nevada and District of New Jersey. The Federal Communications Commission’s Enforcement Bureau also provided assistance in TIGTA’s investigation.
Senior Trial Attorney Michael Sheckels and Trial Attorney Mona Sahaf of the Criminal Division’s Human Rights and Special Prosecutions Section, Trial Attorney Robert Stapleton of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorneys S. Mark McIntyre and Craig M. Feazel of the Southern District of Texas are prosecuting the case.
A Department of Justice website has been established to provide information about the case to already identified and potential victims, and the public. Anyone who believes they may be a victim of fraud or identity theft in relation to this investigation or other telefraud scam phone calls may contact the Federal Trade Commission (FTC) via this website.
Anyone who wants additional information about telefraud scams generally, or preventing identity theft or fraudulent use of their identity information, may obtain helpful information on the IRS tax scams website, the FTC phone scam website and the FTC identity theft website.
Second Indian National Pleads Guilty for Role in Multi-Million Dollar India-Based Call Center Scam Targeting U.S. VictimsRead the Press Release
HOUSTON – An Indian national pleaded guilty today to one count of conspiracy to commit money laundering for his role in liquidating and laundering victim payments generated through various telephone fraud and money laundering schemes via India-based call centers.
Acting U.S. Attorney Abe Martinez of the Southern District of Texas, Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Executive Associate Director Peter T. Edge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Inspector General J. Russell George of the U.S. Treasury Inspector General for Tax Administration (TIGTA) and Inspector General John Roth of the U.S. Department of Homeland Security Office of Inspector General (DHS OIG) made the announcement.
Ashvinbhai Chaudhari, 28, an Indian national who most recently resided in Austin, pleaded guilty before U.S. District Court Judge David Hittner of the Southern District of Texas. Sentencing is currently set for July 21, 2017.
According to admissions made in connection with the plea, Chaudhari and his co-conspirators perpetrated a complex scheme in which individuals from call centers located in Ahmedabad, India, impersonated officials from the IRS or U.S. Citizenship and Immigration Services in a ruse designed to defraud victims located throughout the United States. Using information obtained from data brokers and other sources, call center operators targeted U.S. victims who were threatened with arrest, imprisonment, fines or deportation if they did not pay alleged monies owed to the government. Victims who agreed to pay the scammers were instructed how to provide payment, including by purchasing stored value cards or wiring money, and upon payment, the call centers would immediately turn to a network of “runners” based in the U.S. to liquidate and launder the fraudulently-obtained funds.
According to his plea, since in or about April 2014, Chaudhari worked as a member of a crew of runners operating in Illinois, Georgia, Nevada, Texas and elsewhere throughout the country. At the direction of both U.S. and India-based co-conspirators, often via electronic WhatsApp text communications, Chaudhari admitted to driving around the country with other runners to purchase reloadable cards registered with misappropriated personal identifying information of U.S. citizens. Once victim scam proceeds were loaded onto those cards, Chaudhari admitted he liquidated the proceeds on the cards and transferred the funds into money orders for deposit into various bank accounts while keeping a percentage of the victim funds for himself. Chaudhari also admitted to shipping money orders purchased with victim funds to other U.S. based co-conspirators, receiving fake identification documents from an India-based co-conspirator and using those documents to receive victim scam payments via wire transfers.
To date, Chaudhari, 55 other individuals and five India-based call centers have been charged for their roles in the fraud and money laundering scheme in an indictment returned by a federal grand jury in the Southern District of Texas on Oct. 19, 2016. Chaudhari is the second defendant thus far to plead guilty in this case. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
HSI, DHS-OIG and TIGTA led the investigation of this case. Also providing significant support was the Ft. Bend County, Texas, Sheriff’s Office; police departments in Hoffman Estates and Naperville, Illinois, and Leonia, New Jersey; San Diego County District Attorney’s Office Family Protection/Elder Abuse Unit; U.S. Secret Service; U.S. Small Business Administration - Office of Inspector General; IOC-2; INTERPOL Washington; U.S. Citizenship and Immigration Services (USCIS); U.S. State Department’s Diplomatic Security Service; and U.S. Attorney’s Offices in Northern District of Alabama, District of Arizona, Central District of California, Northern District of California, District of Colorado, Northern District of Florida, Middle District of Florida, Northern District of Illinois, Northern District of Indiana, District of Nevada and District of New Jersey. The Federal Communications Commission’s Enforcement Bureau also provided assistance in TIGTA’s investigation.
Assistant U.S. Attorneys S. Mark McIntyre and Craig M. Feazel of the Southern District of Texas, Senior Trial Attorney Michael Sheckels and Trial Attorney Mona Sahaf of the Criminal Division’s Human Rights and Special Prosecutions Section and Trial Attorney Robert Stapleton of the Criminal Division’s Money Laundering and Asset Recovery Section are prosecuting the case.
A Department of Justice website has been established to provide information about the case to already identified and potential victims, and the public. Anyone who believes they may be a victim of fraud or identity theft in relation to this investigation or other telefraud scam phone calls may contact the Federal Trade Commission (FTC) via this website.
Anyone who wants additional information about telefraud scams generally, or preventing identity theft or fraudulent use of their identity information, may obtain helpful information on the IRS tax scams website, the FTC phone scam website and the FTC identity theft website.
Man Pleads Guilty to Tax EvasionRead the Press Release
HOUSTON – A local man has admitted to willfully attempting to evade or defeat his individual income taxes, announced Acting U.S. Attorney Abe Martinez and Special Agent in Charge D. Richard Goss of IRS – Criminal Investigation (CI).
According to the plea agreement, Daniel Bart Thedinger willfully filed false joint U.S. Individual Income Tax Returns for years 2009, 2010, 2011 and 2012, failing to report a total of more than $700,000 of income for those years. That income was the result of funds he had diverted from two business partnerships over the years to pay personal expenses, such as private school tuition for his children, renovating his personal residence, vacations and personal training.
During 2012, Thedinger wrote six checks for $15,000 each to a consultant in England and created a false invoice, allegedly from the consultant, to disguise the checks as payments for business expenses. The partnerships claimed the diverted funds as business expenses which reduced the true amounts of income from the partnerships for those years that flowed to Thedinger and were included on Schedules E attached to his IRS forms 1040.
Thedinger has agreed to pay $216,871 in restitution to the IRS to be applied to the additional U.S. individual income taxes he owes for the four years.
U.S. District Judge Lee Rosenthal is set to impose sentencing on Sept. 7, 2017, at which time Thedinger 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.
IRS-CI conducted the investigation. Assistant U.S. Attorney Charles J. Escher is prosecuting the case.
Laredo Judge Sends Michigan Man to Prison for Transporting Illegal AliensRead the Press Release
LAREDO, Texas – A 61-year-old Michigan man has been sentenced in Laredo federal court after he was caught attempting to smuggle 10 illegal aliens in the back of a Penske rental truck, announced Acting U.S. Attorney Abe Martinez. A jury convicted George Lester Stewart, of Wheeler, Michigan, June 22, 2016, following only an hour of deliberation.
Today, U.S. District Judge Marina Garcia Marmolejo ordered Stewart to prison for 71 months to be immediately followed by three years of supervised release. In handing down the sentence, Judge Marmolejo noted Stewart’s extensive criminal history and the dangerous manner in which he was transporting the illegal aliens.
At trial, the jury heard that on April 5, 2016, Stewart pulled up to the primary inspection lane at the checkpoint near Freer in a yellow Penske rental truck. A Border Patrol agent noticed Stewart seemed nervous when he claimed the truck was empty. He also stated that he had picked the truck up in Laredo and was driving it for Penske to drop off in Corpus Christi.
Authorities conducted an x-ray examination of the truck which revealed 10 individuals concealed in the cargo area of the padlocked truck. The aliens had been locked there for several hours with outside temperatures reaching nearly 90 degrees. Stewart did not have a key to unlock the padlock.
The jury heard that Stewart first admitted he had been paid to drive a moving truck from McAllen to Houston, that he provided a false address when renting the truck and that he was told to provide false information to Border Patrol. During trial, however, Stewart claimed he had accepted a job offer to transport furniture from McAllen to Houston. He denied knowledge of the aliens in the back of the truck as well as having any involvement in the transportation of undocumented aliens.
The jury was not convinced and found him guilty as charged – one count of conspiracy to transport aliens for financial gain and two counts of transporting illegal aliens.
Stewart 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 with the assistance of Border Patrol. Assistant U.S. Attorneys Chris Howard and Jorge Vela prosecuted the case.
Former Texan Gets Hammered with 30-Year Prison SentenceRead the Press Release
BROWNSVILLE, Texas – A 33-year-old man who resided in Palmetto, Florida, and Pasadena, Texas, has been ordered to federal prison for trafficking narcotics from Mexico through Brownsville to Florida, announced Acting U.S. Attorney Abe Martinez. A federal jury convicted Oscar Sosa Oct. 7, 2016, of conspiring to possess and possessing with intent to distribute three kilograms of methamphetamine following a five-day trial and approximately three hours of deliberations.
Today, U.S. District Judge Andrew Hanen ordered Sosa to federal prison for 360 months to be immediately followed by five years of supervised release.
During the trial, three individuals involved in the conspiracy testified that Sosa hired them to bring packages of methamphetamine on the bus from Brownsville for delivery to him in Florida. They would carry packages of narcotics on their person while on the bus and successfully delivered the drugs to him in Florida from September 2013 to March 2014. They were eventually apprehended at the bus station in Harlingen. They pleaded guilty to their roles in the conspiracy and were later sentenced to prison terms ranging from six to 20 years in prison.
The jury also heard that Sosa had familial connections in Mexico who assisted him in crossing the narcotics from Mexico to Brownsville.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorneys Karen Betancourt and Jody Young are prosecuting the case.
Jury Convicts Leader of Marriage Fraud Ring and Two OthersRead the Press Release
HOUSTON - Three Houston residents have been found guilty after a five-day jury trial for conspiracy to commit marriage fraud, aiding/abetting marriage fraud, marriage fraud, theft of government funds and false statements, announced Acting U.S. Attorney Abe Martinez along with Special Agent in Charge Mark B. Dawson of Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Houston, District Director Tony Bryson of U.S. Citizenship and Immigration Services (CIS) – District 33, and Special Agent in Charge Dax Roberson of U.S. Department of Agriculture, Office of Inspector General – Investigations.
The federal jury deliberated for approximately four hours before convicting Nigerian citizens Folarin H. Alabi, 35, and Justice Daniel, 41, and U.S. citizen Letrishia Andrews, 37, all of Houston, of conspiracy to commit marriage fraud. Alabi was the leader of the conspiracy and also convicted of aiding and abetting marriage fraud. Daniel was further convicted of one count of marriage fraud, while the jury also convicted Andrews of aiding and abetting marriage fraud, theft of government funds and false statements related to her Supplemental Nutrition Assistance Program (SNAP) applications.
The verdicts bring to a total 11 defendants now convicted in two separate, but related, cases of marriage fraud in a scheme involving Nigerian nationals.
Eight others had previously pleaded guilty for their roles in the scheme – Nigerian citizen Ifeoma Adamolekun, 40, and U.S. Citizen Charles R. Warren, 44, in the Alabi case as well as Anisha Gable, 35, Anthony Andrews, 29, Shakietha Joseph, 41 and Trevor Frenney, 41 all of Houston; and Nigerian citizens Michael Nathan, 38, and Hauwa Bello, 39, all of whom also resided in Houston.
A “sham” marriage is a marriage that is entered into for the primary purpose of circumventing the immigration laws. All 11 defendants conspired together in connection with a marriage fraud ring involving arranging “sham” marriages between recruited U.S. citizens and recruited Nigerian nationals. Evidence at trial revealed Alabi would search for and recruit Nigerian nationals at nightclubs.
The defendants would pay U.S. citizens for entering into fraudulent marriages to Nigerian nationals who had originally entered the country on tourist visas. The conspirators would then complete immigration documents and falsely submit them to CIS to obtain legal permanent resident status. As part of the conspiracy, the defendants would take staged photographs of themselves as a couple for documentation of an allegedly meaningful relationship. The conspirators also coached the recruits and/or the Nigerian nationals on what to say when questioned or interviewed by law enforcement or immigration officials about the legitimate nature of the marriages.
At trial, the government presented evidence that Alabi recruited Nigerian nationals, including Daniel, to enter into “sham” marriages with U.S. citizens to deceive immigration authorities and ultimately gain lawful permanent status in the Unites States. The evidence proved Daniel did knowingly marry Andrews, a U.S. citizen for the for the purpose of evading any provision of the immigration laws of the United States. At the time of this conspiracy, Alabi and Daniel were citizens of Nigeria and had entered the U.S. temporarily on non-immigrant visas.
The jury also heard that Andrews submitted false SNAP applications claiming to be single, while at the same time, filing sworn immigration documents claiming to be married to Daniel.
The defense attempted to convince the jury that Andrews and Daniel had marital issues but were in a legitimate marriage despite all the documents and testimony to the contrary. The jury did not believe their claims and found them guilty as charged.
Each defendant faces up to five years in federal prison and a possible $250,000 fine on the conspiracy and marriage fraud counts. Andrews also faces an additional five years for the false statements as well as a maximum of 10 years for theft of government funds. Sentencing is set for Aug. 3, 2017. All will remain in custody pending that hearing.
HSI, CIS - Fraud Detection and National Security Directorate conducted the joint investigation along with Department of Agriculture - Office of the Inspector General. The agencies work together on the Document and Benefit Fraud Task Force which was established to combat these types of crimes where fraudulent representations are made to multiple government agencies. Assistant U.S. Attorneys Rick Bennett and Julie Searle prosecuted the case.
Houston Couple Heads to Prison for Stolen Identity Tax FraudRead the Press Release
HOUSTON – A 32-year-old legal permanent resident from Nigeria and his 31-year-old Houston girlfriend have been ordered to federal prison in a stolen identity tax fraud scheme, announced Acting U.S. Attorney Abe Martinez. Tom Emasealu and Krystal Prophet entered guilty pleas in December 2016 after four days of trial and hearing the testimony of 21 witnesses. Emasealu pleaded guilty to all charges contained in the indictment - conspiracy, possession of at least 15 unauthorized access devices, access device fraud, wire fraud and aggravated identity theft. Prophet admitted to the conspiracy, access device fraud, wire fraud and aggravated identity theft.
Today, U.S. District Judge Vanessa Gilmore handed Emasealu a total of 87 months in federal prison for the conspiracy, fraud and possession of access devices. He also received a mandatory 24 months for the identity theft which must be served consecutively for a total 111-month-sentence. Prophet received 30 months plus 24 months for a total 54-month-term of federal imprisonment. Prophet will be required to serve three years of supervised release following completion of the prison term, while Emasealu is expected to face deportation proceedings following his release from prison.
Both were jointly and severally liable for $37,100.29 in restitution to the victims. Prophet and Emsealu were also found responsible for $113,526 and $273,181.29, respectfully, to the IRS.
In handing down the sentence, Judge Gilmore addressed Emasealu and noted, “You totally messed up [the victims’] lives by stealing their identities.”
According to witness testimony and the evidence admitted during trial, the conspiracy began in January 2014 and continued through May 2015. Emasealu and Prophet conspired and worked together to obtain the identities of approximately 50,000 victims located nationwide which they used to apply for debit and credit cards with various banking institutions.
The evidence showed that Emasealu and Prophet applied for and obtained approximately 230 debit cards using identities of other individuals. These identities were then used to apply for fraudulent tax refunds. The monies were deposited onto the debit cards that were previously created using victim identities.
In total, the defendants attempted to obtain approximately $1.9 million in fraudulent tax refunds. The IRS was able to stop the majority of the transactions, but Emasealu and Prophet still managed to obtain approximately $250,000 in a four-month period.
Prophet was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future. Emasealu will remain in custody.
The U.S. Postal Inspection Service, Secret Service and IRS – Criminal Investigation conducted the investigation. Assistant U.S. Attorneys Julie Searle and Douglas Davis prosecuted the case.
Ambulance Company Owner and Brother Sentenced in $6 Million Health Care Fraud ConspiracyRead the Press Release
HOUSTON – Two brothers have been sentenced to more than four years in federal prison for their convictions of conspiracy to commit health care fraud, health care fraud and money laundering, announced Acting U.S. Attorney Abe Martinez. Kevin Olufemi Davies, 29, and his brother Melvin Olusola Davies, 28, pleaded guilty Dec. 9, 2016.
Today, U.S. District Judge Lynn Hughes ordered Kevin Davies to serve a 57-month sentence, while his brother received 63 months in federal prison. Both will also be required to serve three years of supervised release following completion of the prison term. They were further ordered to pay a more than $2.3 million in restitution. In handing down the sentence, Judge Hughes said that stealing from tax-payers - including blue collar workers who work under difficult conditions such as out in the cold and snow to pay taxes intended to be used to provide health care services to the elderly and sick - was not acceptable. He further noted that probation was not an option for this conduct.
The brothers owned and operated KMD Healthcare Services Inc. (KMD) from their home in a gated townhouse community in Houston. As part of their guilty pleas, the pair admitted they submitted approximately $6 million in false and fraudulent claims to Medicare, Medicaid and Tricare (another government health program) for ambulance services that were not provided. The brothers admitted they transported Medicare beneficiaries with only one of the two required EMTs and in vans instead of ambulances. They also admitted they paid a Houston physician $500 for certificates of medical necessity and paid some of the Medicare beneficiaries to ride in the vans.
Medicare, Medicaid and Tricare only pay for medically necessary ambulance services in vehicles designed and equipped to respond to medical emergencies and for patients who cannot be safely transported by any other means of transportation. Medicare also requires two individuals to staff ambulance transports, including at least one licensed EMT.
According to the plea agreements, the EMTs working for the defendants wrote up ambulance “run sheets” even though the Medicare beneficiaries did not travel by ambulance and did not need ambulance services. The individuals transported were not bed bound, could walk and routinely used non-ambulance transport in their daily activities. One patient even walked to her own therapy session, but KMD billed Medicare $51,952 for her ambulance transportation.
In total, KMD billed Medicare, Medicaid and Tricare approximately $6,293,108 in false and fraudulent claims for ambulance services that were not provided and not medically necessary. They received at least $2,201,137 from Medicare, $219,924 from Medicaid and $16,735.29 from Tricare as payment for those claims.
The brothers have been in federal custody since their arrest on May 25, 2016. They have both forfeitted vehicles they purchased with the fraudulent health care proceeds, including a 2010 Porsche Panamera and a 2012 Mercedes Benz CLS.
The FBI, IRS – Criminal Investigation and Texas Office of the Attorney General’s Medicaid Fraud Control Unit conducted the investigation. Assistant U.S. Attorney Julie Redlinger prosecuted the case.
Three Men Charged with Alien SmugglingRead the Press Release
HOUSTON – Federal charges have been filed against three Mexican nationals who were allegedly holding five illegal aliens at a residence in Splendora, announced Acting U.S. Attorney Abe Martinez.
A federal criminal complaint was filed this morning against Luis Cesar Avalos-Hernandez, 32, Alvaro Cruz-Suarez, 27, and Giovanni Arrelola-Villalobos, 21, all of Mexico. They are expected to make their initial appearances before U.S. Magistrate Judge Frances Stacy on Tuesday, April 25, 2017, at 2:00 p.m. All are charged with conspiracy to transport and harbor illegal aliens within the United States.
On April 19, 2017, agents responded to the 2700 block of FM 2090 in Splendora and discovered eight individuals at the residence. Three claimed to reside there, while five others were found inside a back bedroom without access to their shoes, according to the charges.
Two of the aliens claimed to have been walking through the brush in Texas near the Mexican border for several days before being picked up in a white pickup truck, according the complaint. Cruz-Suarez allegedly drove that vehicle with Avalos-Hernandez as passenger. The charges further indicate that Cruz-Suarez, Avalos-Hernandez and Arrelola-Villalobos all guarded the aliens at the Splendora residence. Avalos-Hernandez allegedly took their shoes, while Arrelola-Villalobos confiscated a cell phone and threatened at least one alien with a rifle, according to the charges.
The criminal complaint alleges all eight were citizens and nationals of Mexico, Honduras and El Salvador, all of whom were illegally present in the United States. They were administratively arrested and transported to the Houston Immigration Service Processing Center for additional checks and further investigation.
At the time of the arrests, authorities seized three firearms, a stolen rifle, miscellaneous documents and a ledger of names, dollar amounts and locations. A white pickup truck was also found at the residence which authorities determined was reported stolen in October 2016.
Immigration and Customs Enforcement’s Homeland Security Investigations is conducting the investigation along with the Splendora Police Department and Montgomery County Sheriff’s Office. Assistant U.S. Attorney Doug Davis 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.
Tomball Business Executive Sentenced in $15 Million False Invoicing SchemeRead the Press Release
HOUSTON – The owner of Tinkle Management Inc. (TMI) has been ordered to federal prison following his conviction of wire fraud and money laundering, announced Acting U.S. Attorney Abe Martinez. John Blake Tinkle, 60, of Tomball, pleaded guilty Sept. 29, 2016.
Today, U.S. District Judge Alfred Bennett, who accepted the guilty plea, handed Tinkle a 48-month sentence. At the hearing, Tinkle admitted that from 2008 through 2015, he falsely invoiced Houston-based Westlake Chemical Corporation for more than $15.6 million in shipping supplies that TMI never delivered. The court entered a money judgment for the $15.6 million and ordered restitution in the same amount. In handing down the sentence, Judge Bennett commented on the extent of the fraud scheme and noted that since Tinkle was from “good stock”—an upstanding and respected local family—he clearly “knew better.” Tinkle also will be required to serve three years of supervised release following completion of the prison term.
TMI was Westlake’s supplier of plastic shipping bags that Westlake used to ship its chemical products internationally. TMI delivered the shipping bags to Packwell Inc., a packaging and logistics company in La Porte. Packwell then used the bags to package Westlake’s chemical products and ship those products through the Houston ship channel. In addition to invoicing Westlake for bags that had actually been delivered, Tinkle submitted false invoices to Westlake for deliveries of bags to Packwell that, in reality, had not occurred.
Tinkle supported his false invoices to Westlake by attaching Packwell receiving reports Tinkle doctored to purportedly show the undelivered bags had actually been received by Packwell. To obtain financing, Tinkle then caused the fraudulent invoices to be presented to Charter Capital, a Houston factoring company, that relied on the invoices in providing funding to TMI. Westlake and Charter Capital paid TMI millions of dollars based on deliveries that never occurred.
Additional evidence was presented today regarding the pervasiveness of the almost seven-year fraud scheme. In some years, more than 80 percent of the invoices Tinkle submitted to his customer Westlake Chemical were fraudulent. Tinkle spent the money from the scheme supporting his family’s lifestyle, purchasing a new home, travel, an airplane and other items.
Previously released on bond, he was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI and IRS-Criminal Investigation conducted the investigation. Assistant U.S. Attorney Robert S. Johnson is prosecuting the case.
Nigerian Citizen Convicted of Defrauding at Least Half a Million Dollars from U.S. VictimsRead the Press Release
HOUSTON – A 25-year-old Nigerian man who was residing in Houston has pleaded guilty to perpetuating a wire fraud scheme involving various Internet scams, announced Acting U.S. Attorney Abe Martinez.
Wiseman Oputa pleaded guilty to one count of wire fraud. Beginning Jan. 1, 2016, until Jan. 25, 2017, Oputa used counterfeit passports to open bank accounts in the greater Houston area. The passports contained photographs of Oputa but had different names and identification information. He then worked with others to lure victims into sending money into these bank accounts. These funds were obtained through a variety of internet scams, including business email compromise, romance schemes and unauthorized intrusions into company email accounts. Checks or wire transfers were then sent from the company’s accounts payable to accounts Oputa or others controlled. Oputa would then use the counterfeit passports to retrieve the fraudulently obtained funds.
In one instance in December 2016, Oputa opened an account at Regions Bank with a counterfeit Ghanaian passport as identification. Shortly thereafter the account received a wire transfer of $40,000 from a victim who had been told to send money for taxes on money he had won in Spain. USAA Bank identified the fraudulent and was able to recal the wire.
U.S. District Judge Alfred H. Bennett accepted the guilty plea and has set sentencing for July 6, 2017. At that time, Oputa faces up to 20 years in federal prison and a possible $250,000 maximum fine. He will remain in custody pending that hearing.
The U.S. Postal Inspection Service conducted the investigation along with Department of State – Diplomatic Security Service and the Secret Service. Assistant U.S. Attorney Suzanne Elmilady is prosecuting the case.
Former Local Teacher Pleads Guilty to Child Pornography ChargesRead the Press Release
HOUSTON – A 51-year-old Houston man has been convicted of receipt and possession of child pornography, announced Acting U.S. Attorney Abe Martinez.
The investigation into Jason Dion Johnson began Dec. 6, 2015, as the FBI sought to identify persons using peer-to-peer software to traffic in child pornography. Agents soon discovered a specific computer as offering to participate in the distribution of child pornography movies. Johnson was identified as the person linked to that computer.
Law enforcement executed a search warrant May 6, 2016, at Johnson’s Houston residence, at which time investigators found a number of videos and images of prepubescent girls being sexually exploited. Additionally, agents allegedly found several unmarked VHS tapes which revealed the presence of what appeared to be a hidden camera video from a changing area within a school. On these tapes, there are young female students who are observed to be entering the camera’s field of view and removing their clothing while in the process of changing into a uniform.
At the time of the investigation, Johnson was employed as a 7th grade Social Studies teacher at Beechnut Academy in Houston. However, authorities do not believe the footage was taken at that school.
U.S. District Judge Alfred H. Bennett accepted the plea and has set sentencing for July 6, 2017. At that time, Johnson faces a minimum of five and up to 20 years imprisonment for the receipt of child pornography as well as up to 10 years for possession of child pornography.
This case, prosecuted by Assistant U.S. Attorney Kimberly Ann Leo, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Ex-Police Officer Sentenced in Attempted Entice of Minor CaseRead the Press Release
LAREDO, Texas – A 42-year-old Odessa man and ex-police officer has been ordered to federal prison following his conviction for attempted enticement of a minor, announced Acting U.S. Attorney Abe Martinez. Chad Michael Bennett pleaded guilty March 3, 2016.
Today, visiting U.S. District Judge Keith P. Ellison sentenced Bennett to 120 months in federal prison. The sentence will be immediately followed by 20 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. In addition, the court ordered Bennett to register as a sex offender.
From Dec. 14, 2015, to Dec. 30, 2015, Bennett communicated through cell phone calls, text messages, emails and online chats detailing his intended plans to engage in sexual acts with a girl he thought was a 14-year-old girl. He had placed a Craigslist ad to which an undercover agent responded, claiming to be the mother of the girl and offering her for sexual activity.
On Dec. 30, 2015, Bennett flew from Odessa to Laredo 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, Bennett was in possession of numerous images of child pornography.
Bennett 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 - Child Exploitation Task Force conducted the investigation. Assistant U.S. Attorney José Angel Flores Jr. 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."
Another Drug Smuggler Heads to Federal PrisonRead the Press Release
LAREDO, Texas – A 32-year-old Laredo man has been ordered to federal prison following his conviction of conspiracy with intent to distribute and possession with intent to distribute 15.7 kilograms of methamphetamine, announced Acting United States Attorney Abe Martinez. Tim McCoy Barton pleaded guilty July 29, 2016.
Today, Visiting U.S. District Judge Keith Ellison sentenced Barton to 108 months in federal prison to be immediately followed by three years of supervised release.
On May 3, 2016, Barton took part in a conspiracy to smuggle 15.7 kilograms of methamphetamine through the Interstate Highway 35 checkpoint located at mile-marker 29. Barton was driving a green 2009 Dodge Journey with Texas plates in which 16 PVC pipes containing 15.7 kilograms of methamphetamine were found in a compartment inside the gas tank.
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.
Border Patrol, Customs and Border Protection and the Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorney José Angel Flores Jr. prosecuted the case.
Rosenberg Man Convicted of Multiple Child Pornography ChargesRead the Press Release
HOUSTON – A 23-year-old man from Rosenberg has entered a guilty plea to sexual exploitation of a child, distribution and possession of child pornography, announced Acting U.S. Attorney Abe Martinez.
Ryan Glen Colburn first came to the attention of law enforcement after he had sent images of child pornography to another individual who had been arrested for child pornography. Federal agents executed a search warrant at Colburn’s residence and performed a forensic examination on his computer. This exam showed Colburn was in possession of more than 1,100 images and 200 videos of young children engaged in sexually explicit conduct which included children under the age of 12, bondage and acts of violence. Some of the images are of known victims as identified through the National Center for Missing and Exploited Children.
Further, Colburn produced 25 images and six videos of a two-year-old minor which would constitute child pornography.
Agents also executed a search warrant on Colburn’s Dropbox account which contained more than 600 images and 400 videos of child pornography.
During the plea today, Colburn admitted to taking sexually explicit photographs and videos of a two-year-old minor. Colburn further admitted he traded these images with other individuals online.
U.S. District Judge Nancy F. Atlas accepted the plea and set sentencing for July 5, 2017. At that time, Colburn faces a minimum of 15 and up to 30 years in federal prison for production of child pornography, up to 20 years imprisonment for distribution as well as a maximum of 10 years for the possession of child pornography. All charges also carry a possible penalty of a $250,000 maximum fine.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the Investigation.
This case, prosecuted by Assistant U.S. Attorney Kimberly Ann Leo, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Jury Convicts Cleburne Man of Sexual Enticement of a Minor via CraigslistRead the Press Release
LAREDO, Texas – A 47-year-old man has been convicted after posting an online advertisement seeking sexual contact with a young girl, announced Acting U.S. Attorney Abe Martinez along with Special Agent in Charge Shane Folden of Immigration and Customs Enforcement’s Homeland Security Investigations (HSI). The federal jury deliberated for less than two hours following a two-day trial before convicting Edwin Oland Andrus, of Cleburne.
During trial, the jury heard that Andrus posted an online advertisement on Craigslist seeking a “naughty little young girl.” An HSI special agent responded to the ad. Soon after, Andrus engaged in email and text communications with the undercover agent, believing the agent was a woman with a 14-year-old daughter. During those conversations, Andrus graphically and explicitly described sexual acts he wanted to perform on the woman and the young girl.
The jury also heard that Andrus offered to drive to Laredo on several occasions. Exactly one week after the agent initially responded to the ad, Andrus drove almost 400 miles from Cleburne to Laredo with the intention to engage in sexual contact with the minor female. He was arrested upon arrival on Jan. 13, 2017, at which time authorities discovered Andrus had brought with him condoms, personal lubricant and a “morning-after” pill.
Andrus had previously admitted he intended to have sex with the 14-year-old. At trial, however, he changed his story and said he did not plan to engage in sexual activity. The jury was not convinced and found him guilty as charged.
Sentencing will be set at a later date. At that time, Andrus faces a minimum of 10 years and up to life in federal prison and a possible $250,000 maximum fine. Andrus has been and will remain in custody pending that hearing.
HSI conducted the investigation. Assistant U.S. Attorneys Alfredo De La Rosa and Giselle S. Guerra are prosecuting the case.
Brownsville Man Sent to Prison on Firearms ChargesRead the Press Release
BROWNSVILLE, Texas – A 40-year-old Brownsville resident has been ordered to federal prison following his conviction of possession of a firearm by a convicted felon, announced Acting U.S. Attorney Abe Martinez. Isaac Pedraza pleaded guilty Jan. 11, 2017.
Today, U.S. District Judge Andrew Hanen handed Pedraza an 87-month sentence to be immediately followed by three years of supervised release. At the hearing, Judge Hanen enhanced Pedraza’s sentence, finding he was in possession of a firearm capable of accepting a high-capacity magazine and that he had transferred weapons with the belief they were going to be transported to Mexico.
Pedraza was previously convicted of burglary of a building in Cameron County in 1995 and aggravated assault on a public servant in Cameron County in 1997. These convictions prohibited Pedraza from possessing firearms or ammunition. On Dec. 9, 2016, Pedraza was arrested pursuant to an arrest warrant, at which time authorities searched his home and discovered four firearms.
Pedraza has been and will remain in federal custody pending transfer to the U.S. Bureau of Prisons facility to be determined in the near future.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation with the assistance of the Drug Enforcement Administration. Assistant U.S. Attorney Jason Corley prosecuted the case.
Tax Preparer Arrested for Tax EvasionRead the Press Release
CORPUS CHRISTI, Texas – On the eve of the federal tax filing deadline, a local woman has been arrested on charges of tax evasion and aiding in the preparation of false tax returns, announced Acting U.S. Attorney Abe Martinez along with D. Richard Goss of IRS-Criminal Investigation.
A federal grand jury returned a 50-count indictment against Cristina Gonzalez April 12, 2017, which lead to her arrest this morning. She is expected to make her initial appearance before U.S. Magistrate Judge Jason B. Libby at 2:00 p.m. today.
Gonzalez is charged with 46 counts of willfully aiding and assisting in the preparation of false U.S. Income Tax Returns for others as well as four counts of willfully filing a false income tax return for herself. The indictment alleges she knowingly filed tax returns that underreported her income resulting in a substantial tax due to the United States. Gonzalez also aided others in the preparation and filing of income tax returns that were false, according to the charges. Those returns allegedly included tax credits which Gonzalez knew the taxpayers were not entitled to claim.
Each conviction of tax evasion carries a possible maximum sentence of five years in federal prison, while aiding in the preparation of false tax returns carries a three-year-maximum term. Each conviction could also result in up to a $250,000 fine.
IRS-CI conducted the investigation. Assistant U.S. Attorney Robert D. Thorpe Jr. is prosecuting the case.
An indictment or information is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Magnolia Man Sent to Prison for Cocaine ConspiracyRead the Press Release
HOUSTON – A 35-year-old Magnolia resident has been ordered to federal prison following his conviction of conspiracy to possess with the intent to distribute cocaine, announced Acting U.S. Attorney Abe Martinez. Jose Jaime Solis Jr. pleaded guilty Nov. 17, 2016.
Today, U.S. District Judge Nancy Atlas, who accepted the guilty plea, handed Solis a sentence of 120 months in federal prison to be immediately followed by five years of supervised release.
Solis and co-defendant Ramon Sanchez were engaged in a scheme to transport cocaine via bus from Laredo to Houston. In March 2016, agents obtained video footage that showed Solis delivering a suitcase packed with more than 12 kilograms of cocaine to a bus in Laredo that was bound for Houston. Authorities arrived at the bus terminal and seized the bag along with the video. Solis ultimately admitted responsibility for the cocaine discovered in the suitcase.
Sanchez, 26 of Laredo, also pleaded guilty and is set for sentencing May 25, 2017.
Both men have been and will remain in custody.
The Drug Enforcement Administration and Border Patrol conducted the Organized Crime Drug Enforcement Task Force Operation. Assistant U.S. Attorney John D. Jocher is prosecuting the case.
Indian National Pleads Guilty for Role in Multi-Million Dollar India-Based Call Center Scam Targeting U.S. VictimsRead the Press Release
HOUSTON – An Indian national pleaded guilty today to one count of conspiracy to commit money laundering for his role in liquidating and laundering victim payments generated through various telephone fraud and money laundering schemes via India-based call centers.
Acting U.S. Attorney Abe Martinez of the Southern District of Texas, Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Executive Associate Director Peter T. Edge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Inspector General J. Russell George of the U.S. Treasury Inspector General for Tax Administration (TIGTA) and Inspector General John Roth of the U.S. Department of Homeland Security Office of Inspector General (DHS-OIG) made the announcement.
Bharatkumar Patel, aka Bharat Patel, 43, an Indian national who had resided in Midlothian, Illinois, pleaded guilty before U.S. District Court Judge David Hittner of the Southern District of Texas. He also agreed to deportation following his sentence. Sentencing is currently set for July 7, 2017.
According to admissions made in connection with the plea, Patel and his co-conspirators perpetrated a complex scheme in which individuals from call centers located in Ahmedabad, India, impersonated officials from the IRS or U.S. Citizenship and Immigration Services in a ruse designed to defraud victims located throughout the United States. Using information obtained from data brokers and other sources, call center operators targeted U.S. victims who were threatened with arrest, imprisonment, fines or deportation if they did not pay alleged monies owed to the government. Victims who agreed to pay the scammers were instructed how to provide payment, including by purchasing stored value cards or wiring money, and upon payment, the call centers would immediately turn to a network of “runners” based in the U.S. to liquidate and launder the fraudulently-obtained funds.
According to his plea, beginning in or about July 2013, Patel worked as a member of a crew of runners operating in the Chicago area and elsewhere throughout the country. Patel admitted to purchasing reloadable cards or retrieving wire transfers and using the misappropriated personal identifying information of U.S. citizens. Patel also admitted to opening personal bank accounts in order to receive scam proceeds and payments from defrauded victims as well as creating limited liability companies in his name to further the conspiracy. According to his plea, Patel opened one bank account that received more than $1.5 million in deposits over a one-year period and another bank account that received more than $450,000 in deposits over a five-month period.
Patel was charged for his role in the fraud and money laundering scheme alongside 55 other individuals and five call centers in an indictment returned by a federal grand jury in the Southern District of Texas on Oct. 19, 2016.
HSI, DHS-OIG and TIGTA led the investigation of this case. Also providing significant support was the Ft. Bend County, Texas, Sheriff’s Office; police departments in Hoffman Estates and Naperville, Illinois, and Leonia, New Jersey; San Diego County District Attorney’s Office Family Protection/Elder Abuse Unit; U.S. Secret Service; U.S. Small Business Administration - Office of Inspector General; IOC-2; INTERPOL Washington; and U.S. Attorney’s Offices in Northern District of Alabama, District of Arizona, Central District of California, Northern District of California, District of Colorado, Northern District of Florida, Middle District of Florida, Northern District of Illinois, Northern District of Indiana, District of Nevada and District of New Jersey. The Federal Communications Commission’s Enforcement Bureau also provided assistance in TIGTA’s investigation.
Assistant U.S. Attorneys S. Mark McIntyre and Craig M. Feazel of the Southern District of Texas are prosecuting the case along with Senior Trial Attorney Michael Sheckels and Trial Attorney Mona Sahaf of the Criminal Division’s Human Rights and Special Prosecutions Section and Trial Attorney Robert Stapleton of the Criminal Division’s Money Laundering and Asset Recovery Section.
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 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.
Indian National Pleads Guilty for Role in Multi-Million Dollar India-Based Call Center Scam Targeting U.S. VictimsRead the Press Release
An Indian national pleaded guilty today to one count of conspiracy to commit money laundering for his role in liquidating and laundering victim payments generated through various telephone fraud and money laundering schemes via India-based call centers.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Abe Martinez of the Southern District of Texas, Executive Associate Director Peter T. Edge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Inspector General J. Russell George of the U.S. Treasury Inspector General for Tax Administration (TIGTA) and Inspector General John Roth of the U.S. Department of Homeland Security Office of Inspector General (DHS OIG) made the announcement.
Bharatkumar Patel, aka Bharat Patel, 43, an Indian national who had resided in Midlothian, Illinois, pleaded guilty before U.S. District Court Judge David Hittner of the Southern District of Texas. He also agreed to deportation following his sentence. Sentencing is currently set for July 7, 2017.
According to admissions made in connection with the plea, Patel and his co-conspirators perpetrated a complex scheme in which individuals from call centers located in Ahmedabad, India, impersonated officials from the IRS or U.S. Citizenship and Immigration Services in a ruse designed to defraud victims located throughout the United States. Using information obtained from data brokers and other sources, call center operators targeted U.S. victims who were threatened with arrest, imprisonment, fines or deportation if they did not pay alleged monies owed to the government. Victims who agreed to pay the scammers were instructed how to provide payment, including by purchasing stored value cards or wiring money, and upon payment, the call centers would immediately turn to a network of “runners” based in the U.S. to liquidate and launder the fraudulently-obtained funds.
According to his plea, beginning in or about July 2013, Patel worked as a member of a crew of runners operating in the Chicago area and elsewhere throughout the country. Patel admitted to purchasing reloadable cards or retrieving wire transfers and using the misappropriated personal identifying information of U.S. citizens. Patel also admitted to opening personal bank accounts in order to receive scam proceeds and payments from defrauded victims as well as creating limited liability companies in his name to further the conspiracy. According to his plea, Patel opened one bank account that received more than $1.5 million in deposits over a one-year period and another bank account that received more than $450,000 in deposits over a five-month period.
Patel was charged for his role in the fraud and money laundering scheme alongside 55 other individuals and five call centers in an indictment returned by a federal grand jury in the Southern District of Texas on Oct. 19, 2016. An indictment is merely an allegation and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
HSI, DHS-OIG and TIGTA led the investigation of this case. Also providing significant support was the Ft. Bend County, Texas, Sheriff’s Office; police departments in Hoffman Estates and Naperville, Illinois, and Leonia, New Jersey; San Diego County District Attorney’s Office Family Protection/Elder Abuse Unit; U.S. Secret Service; U.S. Small Business Administration - Office of Inspector General; IOC-2; INTERPOL Washington; U.S. Citizenship and Immigration Services (USCIS); U.S. State Department’s Diplomatic Security Service; and U.S. Attorney’s Offices in Northern District of Alabama, District of Arizona, Central District of California, Northern District of California, District of Colorado, Northern District of Florida, Middle District of Florida, Northern District of Illinois, Northern District of Indiana, District of Nevada and District of New Jersey. The Federal Communications Commission’s Enforcement Bureau also provided assistance in TIGTA’s investigation.
Senior Trial Attorney Michael Sheckels and Trial Attorney Mona Sahaf of the Criminal Division’s Human Rights and Special Prosecutions Section, Trial Attorney Robert Stapleton of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorneys S. Mark McIntyre and Craig M. Feazel of the Southern District of Texas are prosecuting the case.
A Department of Justice website has been established to provide information about the case to already identified and potential victims and the public. Anyone who believes they may be a victim of fraud or identity theft in relation to this investigation or other telefraud scam phone calls may contact the 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.
Home Health Care Owners Indicted for FraudRead the Press Release
A Houston couple is set to appear in federal court on charges they fraudulently billed more than $24 million to Medicare through several home health companies, announced Acting U.S. Attorney Abe Martinez. Oluyemisi Amos, 35, and her husband Felix Amos, 66, are charged in an eight-count indictment with conspiracy to commit health care fraud, health care fraud and money laundering.
They are set to appear before U.S. Magistrate Judge Nancy Johnson today at 10:00 a.m.
According to the indictment, returned April 5, 2017, the couple took over Advanced Holistic Healthcare Services Inc. in 2011 and allegedly submitted claims to Medicare for home health services for beneficiaries that did not receive any services. Additionally, physicians did not order these services for the beneficiaries, according to the charges.
The indictment alleges the defendants continued the same pattern of fraudulent billing with other companies - Access Practical Solutions, GetUpandWalk Inc. and Guarranty Home Health Agency. As soon as they took ownership of these companies, there was a dramatic increase in the billing for services, some of which had been performed prior to the change in ownership, according to the charges. They would allegedly bill a high volume to Medicare for a short period of time, then stop.
Internal Revenue Service - Criminal Investigation, Department of Health and Human Services-Office of Inspector General, Secret Service and the Medicaid Fraud Control Unit of the Texas Attorney General’s Office conducted the joint investigation. Assistant U.S. Attorneys Rodolfo Ramirez and Julie Redlinger are 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.
League City Woman Sentenced for Receiving Child Pornography via Text and Online MessagingRead the Press Release
GALVESTON, Texas - A 46-year-old woman has been ordered to federal prison following her conviction of receipt of child pornography, announced Acting U.S. Attorney Abe Martinez. Tracey Lynn Bautista pleaded guilty Jan. 26, 2017.
Today, U.S. District Judge George C. Hanks Jr. ordered Bautista to serve 112 months in federal prison. In handing down the sentence, Judge Hanks noted the horrific nature of Bautista’s actions that the photos she sent would be out there forever. He stated it was his job to protect those who cannot help themselves. Bautista was further ordered to serve 10 years of supervised release following completion of her prison term, during which time she will have to comply with numerous requirements designed to restrict her access to children and the Internet. She will also be ordered to register as a sex offender.
Bautista came to the attention of law enforcement after investigators found evidence she was receiving child pornography from an individual who had been arrested for the promotion of child pornography. Investigators found several child pornography images and videos which were sent to Bautista via text messaging and the online messaging application known as Kik Messenger. Bautista acknowledged receipt of these images by responding “nice” and “[w]ow. [g]ood pic.”
Additionally, investigators found text messages in which Bautista discusses a minor relative with this individual. Bautista offered to get pictures of the minor relative for him and later sent a photo of a teenage female relative who is topless with her breasts exposed.
At the hearing today, the court heard testimony that she had communicated with yet another individual about obtaining nude photos of the same minor relative.
Immigration and Customs Enforcement’s Homeland Security Investigations and the Montgomery County Precinct 1 Constable’s Office conducted the investigation.
This case, prosecuted by Assistant U.S. Attorney Kimberly Ann Leo, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Jury Convicts Local Man of Hostage Taking of Two Honduran NationalsRead the Press Release
McALLEN, Texas – A federal jury has convicted a Pharr man of hostage taking and harboring aliens, announced Acting U.S. Attorney Abe Martinez.
The jury deliberated for less than 45 minutes before convicting Jesus Manuel Ramirez, 32.
During trial, the jury heard from several witnesses including the two victims who testified that on May 4, 2014, Ramirez and several co-conspirators began threatening and beating them because their families had not paid their smuggling fees. According to their testimony, on that day, one of the co-conspirators made several phone calls to their family members and conveyed that if they did not pay a sum of money, they were going to beat or kill both men.
Additionally, when the families failed to pay the money, Ramirez became upset and ordered a co-conspirator to restrain them. Both men were tied up and beaten. A family member recorded one of the beatings over the phone which the jury saw at trial. Both men testified that a co-conspirator continued to beat them and attempted to sodomize one of the men. Eventually, one escaped and was able to contact his brother who was being assisted by agents from Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Long Island, New York.
An HSI agent also provided testimony and told the jury he had rescued one of the Honduran men who led them to the apartment where he had been held against his will. Agents searched the apartment and encountered the second Honduran national, dressed only in boxers. Alfredo Jaime Balli, 26, Jose Angel Mayorga, 21, and Gustavo Hernandez-Castro, 29, were arrested at the apartment. Ramirez was arrested in August 2016 when crossing into the United States from Mexico.
U.S. District Judge Randy Crane, who presided over the trial, has set sentencing for July 3, 2017. Ramirez faces up to life in federal prison for the hostage taking conviction and up to 10 years for harboring illegal aliens. Both convictions also carry a possible penalty of $250,000. Ramirez has been in custody without bond since his arrest and will remain in custody pending sentencing.
Balli, Mayorga and Hernandez pleaded guilty and have been sentenced to 216, 240 and 120 months, respectively.
HSI in McAllen and Long Island, New York, conducted the investigation with the Pharr Police Department. Assistant U.S. Attorneys Leo J. Leo III and Linda Requénez are prosecuting the case.
Five RGV Residents Charged with Medicare Fraud and Illegal KickbacksRead the Press Release
McALLEN, Texas – Five local residents have been charged following an operation conducted by the Rio Grande Valley (RGV) health care fraud task force targeting Medicare fraud and the payment of illegal kickbacks, announced Acting U.S. Attorney Abe Martinez.
Brenda de la Cruz, 39, and Francisco Rangel, 59, both of Mission; Sonia Garcia, 51, of McAllen; Aurora de la Garza, 54, of Harlingen; and Luis Manuel Garza, 39, of Brownsville, are all charged in separate, but similar criminal informations.
According to the charging documents, each of the five individuals engaged in conspiracies to refer Medicare beneficiaries to a home health agency in exchange for illegal kickback payments. In many instances, the referred Medicare beneficiaries allegedly did not need or qualify for home health services, resulting in the submission of fraudulent claims to Medicare, according to the charges.
Conspiracy to commit health care fraud, carries a maximum punishment of 10 years in federal prison and up to a $250,000 maximum fine. Conspiracy to make or receive illegal kickbacks carries a possible five-year prison term and a maximum $25,000 fine, upon conviction.
The FBI, U.S. Department of Health and Human Services‐Office of Inspector General, Texas Attorney General’s Medicaid Fraud Control Unit and the Texas Health and Human Services Commission-Office of the Inspector General conducted the investigation. Assistant U.S. Attorneys Andrew Swartz and Michael Day are prosecuting the cases.
A criminal information is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Twenty-Five Tri-City Bombers Gang Members and Associates Indicted on Federal Racketeering, Drug Distribution and Money Laundering ChargesRead the Press Release
A grand jury sitting in Houston returned a 27-count superseding indictment against 25 Tri-City Bombers (TCB) gang members and associates in a conspiracy involving racketeering, drug distribution, money laundering, robbery and discharge of a firearm resulting in death.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Abe Martinez of the Southern District of Texas, Special Agent in Charge Christopher Combs of the FBI’s San Antonio Field Office and Special Agent in Charge D. Richard Goss of IRS - Criminal Investigation’s (CI) Houston Field Office made the announcement.
A 27-count superseding indictment was returned by a grand jury on March 30, 2017, and unsealed in its entirety yesterday in the U.S. District Court of the Southern District of Texas.
According to court documents, the TCB is a national gang active in multiple states that was formed in the early 1980s in the Pharr, San Juan and Alamo areas of South Texas. TCB has an organized decision-making hierarchy, including a person in charge of each city, and leaders within the organization who determined whether its members violated the gang’s rule and deserved punishment. To instill loyalty, including participation in gang’s criminal activities and adherence to its strict rule structure, TCB leaders determined and ordered the severe beating of members and associates for acts of disobedience or non-observance of the TCB’s rules.
The scope of the TCB’s crimes is wide-ranging and consistent in its nationwide operation. The RICO conspiracy charged here includes murder, attempted murder, drug trafficking, firearms crimes, money laundering and other crimes in furtherance of the organization’s enterprise. In Texas, for example, the TCB brought money into the gang through drug trafficking, home invasion robberies and money laundering.
The indictment alleges that from January 2009 and continuing through March 2017, TCB members and associates engaged in a variety of racketeering activities, including murder, attempted murder, robbery and drug trafficking. TCB members and associates allegedly coordinated the transportation and sale of cocaine, marijuana, methamphetamine and heroin from South Texas to Atlanta, Georgia, Ft. Wayne, Indiana, St. Louis, Missouri, and other cities nationwide. The indictment also alleges that TCB members committed a home invasion robbery for the purpose of stealing controlled substances, during which the home owner was shot to death.
The 19 defendants charged for their alleged roles in the RICO conspiracy are Mike Bueno, aka Mocho, 45, of Edinburg/Alamo, Texas; Eduardo Hernandez, aka Lepo, 36, of Donna, Texas; Arturo Ramirez Jr., aka China, 41, of Weslaco/San Juan, Texas; Jose Rolando Gonzalez, aka Rollie, 38, of Alton, Texas; Ernesto Alonzo Ruiz, aka Gallito, 38, of Raymondville, Texas; Hipolito Gonzalez, aka Pollie, 34, of Mission, Texas; Israel Gonzalez, aka Rayo, 34, of Pharr, Texas; Rolando Cruz, aka Party, 45, of Edinburg/Mission, Texas; Jesus Silva, aka Bola, 42, of San Juan, Texas; Luis Antonio Saldivar, aka Flaco, 25, of Mission, Texas; Octavio Muniz, aka Tavo, 40, of Pharr/Edinburg, Texas; Joseph Alberto Lopez, 33, of Donna, Texas; Margil Reyna, Jr., aka Mikeo, 32, formerly of Alamo, Texas, now of Toledo, Ohio; Joshua Omar Santillan, 35, of Donna, Texas; Roberto Cortez, aka Robe, 35, of Pharr/San Juan, Texas; Rene Vela, aka Gordo, 47, of Edinburg/McAllen, Texas; Carlos de la Rosa, aka Charlie, 40, of San Juan, Texas, Ernesto Saenz, aka Tuerto, 26, of McAllen, Texas; and Luis Alberto Tello, aka Wicho, 36, of Mercedes, Texas.
The superseding indictment also charges conspiracies to distribute cocaine, marijuana and methamphetamine, money laundering conspiracy, robbery, discharge of a firearm in the course of a violent crime resulting in death, and multiple instances of possession of controlled substances with the intent to distribute. Multiple racketeering conspiracy defendants are charged with each of these offenses. In addition, Daniel Saenz, 32, of Donna, Texas, is charged with conspiracy to distribute cocaine. De la Rosa; Ricardo Ortega, 34, of Edinburg, Texas; and Veronica Chavez, 38, of Mesquite/Brownsville, Texas, are charged with conspiracy to distribute marijuana and possession with intent to distribute marijuana. Ivan Rodriguez, 33, of McAllen, Texas, and Ciro Moya, 39, of Olivia, Minnesota, are charged with conspiracy to distribute methamphetamine. Roberto Reyes, aka Pelon, 31, of Pharr, Texas, is charged with possession with intent to distribute cocaine.
The charges and allegations in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The FBI and IRS-CI are investigating the case along with the Drug Enforcement Administration, Customs and Border Protection, Texas Alcoholic Beverage Commission, Hidalgo County Sheriff’s Office and police departments in McAllen, Mission, Edinburg, Weslaco and Pharr, Texas.
Assistant U.S. Attorneys Anibal J. Alaniz and Casey N. MacDonald of the Southern District of Texas and Trial Attorney Catherine K. Dick of the Criminal Division’s Organized Crime and Gang Section are prosecuting the case.
Tri-City Bombers Gang Members and Associates Indicted on Federal Racketeering, Drug Distribution, and Money Laundering ChargesRead the Press Release
HOUSTON - A grand jury sitting in Houston returned a 27-count superseding indictment against 25 Tri-City Bombers (TCB) gang members and associates in a conspiracy involving racketeering, drug distribution, money laundering, robbery and discharge of a firearm resulting in death.
Acting U.S. Attorney Abe Martinez of the Southern District of Texas, Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Special Agent in Charge Christopher Combs of the FBI’s San Antonio Field Office and Special Agent in Charge D. Richard Goss of IRS - Criminal Investigation (CI) - Houston Field Office made the announcement.
A 27-count superseding indictment was returned by a grand jury on March 30, 2017, and unsealed in its entirety today in the U.S. District Court of the Southern District of Texas.
According to court documents, the TCB is a national gang active in multiple states that was formed in the early 1980s in the Pharr, San Juan and Alamo areas of South Texas. TCB has an organized decision-making hierarchy, including a person in charge of each city, and leaders within the organization who determined whether its members violated the gang’s rule and deserved punishment. To instill loyalty, including participation in gang’s criminal activities and adherence to its strict rule structure, TCB leaders determined and ordered the severe beating of members and associates for acts of disobedience or non-observance of the TCB’s rules.
The scope of the TCB’s crimes is wide-ranging and consistent in its nationwide operation. The RICO conspiracy charged here includes murder, attempted murder, drug trafficking, firearms crimes, money laundering and other crimes in furtherance of the organization’s enterprise. In Texas, for example, the TCB brought money into the gang through drug trafficking, home invasion robberies and money laundering.
The indictment alleges that from January 2009 and continuing through March 2017, TCB members and associates engaged in a variety of racketeering activities, including murder, attempted murder, robbery and drug trafficking. TCB members and associates allegedly coordinated the transportation and sale of cocaine, marijuana, methamphetamine and heroin from South Texas to Atlanta, Georgia, Ft. Wayne, Indiana, St. Louis, Missouri, and other cities nationwide. The indictment also alleges that TCB members committed a home invasion robbery for the purpose of stealing controlled substances, during which the home owner was shot to death.
The 19 defendants charged for their alleged roles in the RICO conspiracy are Mike Bueno, aka Mocho, 45, of Edinburg/Alamo; Eduardo Hernandez, aka Lepo, 36, Joseph Alberto Lopez, 33, and Joshua Omar Santillan, 35, all of Donna; Arturo Ramirez Jr., aka China, 41, of Weslaco/San Juan; Jose Rolando Gonzalez, aka Rollie, 38, of Alton; Ernesto Alonzo Ruiz, aka Gallito, 38, of Raymondville; Hipolito Gonzalez, aka Pollie, 34, of Mission; Luis Antonio Saldivar, aka Flaco, 25, of Mission; Israel Gonzalez, aka Rayo, 34, of Pharr; Rolando Cruz, aka Party, 45, of Edinburg/Mission; Jesus Silva, aka Bola, 42, of San Juan; Carlos de la Rosa, aka Charlie, 40, of San Juan; Octavio Muniz, aka Tavo, 40, of Pharr/Edinburg; Margil Reyna, Jr., aka Mikeo, 32, formerly of Alamo, now of Toledo, Ohio; Roberto Cortez, aka Robe, 35, of Pharr/San Juan; Rene Vela, aka Gordo, 47, of Edinburg/McAllen; Ernesto Saenz, aka Tuerto, 26, of McAllen; and Luis Alberto Tello, aka Wicho, 36, of Mercedes.
The superseding indictment also charges conspiracies to distribute cocaine, marijuana and methamphetamine, money laundering conspiracy, robbery, discharge of a firearm in the course of a violent crime resulting in death and multiple instances of possession of controlled substances with the intent to distribute. Multiple racketeering conspiracy defendants are charged with each of these offenses. In addition, Daniel Saenz, 32, of Donna, is charged with conspiracy to distribute cocaine. De la Rosa, Ricardo Ortega, 34, of Edinburg, and Veronica Chavez, 38, of Mesquite/Brownsville, are charged with conspiracy to distribute marijuana and possession with intent to distribute marijuana. Ivan Rodriguez, 33, of McAllen, and Ciro Moya, 39, of Olivia, Minnesota, are charged with conspiracy to distribute methamphetamine. Roberto Reyes, aka Pelon, 31, of Pharr, is charged with possession with intent to distribute cocaine.
The FBI and IRS-CI are investigating the case along with the Drug Enforcement Administration, Customs and Border Protection, Texas Alcoholic Beverage Commission, Hidalgo County Sheriff’s Office and police departments in McAllen, Mission, Edinburg, Weslaco and Pharr, Texas.
Assistant U.S. Attorneys Anibal J. Alaniz and Casey N. MacDonald of the Southern District of Texas and Trial Attorney Catherine K. Dick of the Criminal Division’s Organized Crime and Gang Section are 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.
Former Credit Union Employee IndictedRead the Press Release
GALVESTON, Texas – Authorities have arrested the former manager of Electrical Workers 527 Federal Credit Union on charges of bank fraud, theft and misapplication, and making false statements in the books and records of a financial institution, announced Acting U.S. Attorney Abe Martinez.
A federal grand jury returned a sealed indictment against Susan Margaret Garza, 60, of Galveston, on March 23, 2017, which was unsealed today upon her arrest. She made her initial appearance today before U.S. Magistrate Judge John Froeschner. She is set for an arraignment hearing April 13, 2017.
The indictment alleges that from 2008 through May 23, 2013, Garza made unauthorized withdrawals from members’ accounts while employed at the credit union. She also allegedly made false entries in the books and records to conceal her unauthorized withdrawals, fraudulently issued checks on the credit union’s bank account and made unauthorized loans in the names of credit union members all for the use and benefit of the herself and others.
Each count of bank fraud, theft and misapplication, and false entry carries a maximum penalty of 30 years imprisonment and a fine up to $1 million.
The indictment also contains a notice of criminal forfeiture and seeks forfeiture of $466,675.32.
The FBI conducted the investigation. Assistant U.S. Attorney John Braddock is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
South Laredo Crack Dealers Sentenced to Lengthy Terms of ImprisonmentRead the Press Release
LAREDO, Texas – The reputed leader of the Melendez Drug Trafficking Organization from South Laredo has been ordered to federal prison for life, announced Acting U.S. Attorney Abe Martinez.
A federal jury convicted Adan Melendez aka “12,” 40, in June 2015 on 20 counts related to drug trafficking to include drug conspiracy and possession with intent to distribute cocaine, crack and marijuana; using minors in drug operations; drug distribution; conspiracy to commit money laundering; maintaining a drug premises; possession with intent to distribute marijuana; and possession a firearm in relation to a drug trafficking offense.
Today, U.S. District Judge Diana Saldaña sentenced Melendez to life in prison.
Melendez’s two sons - Adan Melendez Jr. aka “Vivi,” 22, and Andres Melendez aka “Chon,” 21, both of Laredo - were also sentenced today. Melendez Jr. received a sentence of 147 months for the drug conspiracy, while his younger brother was ordered to serve 188 months in prison for both the conspiracy and for possession with intent to distribute cocaine.
A total of 18 defendants have now been sentenced as part of Operation “Revocation.” The 15 others received terms up to 210 months in prison. Ten additional defendants convicted in the case are still pending sentencing.
Melendez and his two sons ran an organization that distributed cocaine, crack and marijuana in South Laredo from at least 2012 until they were arrested in the summer of 2014. Testimony during trial revealed that Melendez profited approximately $1,200 per day from his operations and spent tens of thousands on luxury cars for himself and his sons.
At the hearing today, Judge Saldaña stated that she could find no redeeming value in Melendez’s background or lifestyle. Assistant U.S. Attorney (AUSA) José Angel Moreno likened the drug dealers to vampires, quoting from a Fifth Circuit case describing drug dealers:
“This observation of the en banc Court is patently correct, and we so hold. Except in rare cases, the murder’s red hand falls on one victim only, however grim the blow; but the foul hand of the drug dealer blights life after life and, like the vampire of fable, creates others in its owner’s own image–others who create others still, across our land and down our generations, sparing not even the unborn.”
The Drug Enforcement Administration, Laredo Police Department, Webb County Sheriff’s Office and Texas Department of Public Safety conducted the Organized Crime Drug Enforcement Task Force investigation. AUSAs Moreno and Jorge Vela are prosecuting the case.
Seven Tax Return Preparers Charged, Repeat Offender Sent to PrisonRead the Press Release
HOUSTON - With the deadline for filing income tax returns rapidly approaching, Acting U.S. Attorney Abe Martinez and Special Agent in Charge D. Richard Goss of IRS - Criminal Investigation (CI) have jointly announced seven newly-charged tax return preparers as well as a significant sentencing and delivered a warning to those who are thinking about breaking the law by committing tax crimes.
“Federal law requires everyone to pay their fair share of taxes,” said Martinez. “False tax returns are an attempt to cheat the system, the U.S. Treasury and ultimately the American people. Return preparers have an obligation to seek only the refunds their clients are entitled to and charge a reasonable fee in doing so. Those who abuse their filing privileges will be investigated, caught and prosecuted to the fullest extent of the law. All taxpayers should also exercise caution in selecting preparers on whom they rely in seeking an appropriate refund. If a preparer promises financial dividends that are too good to be true, it may well be and could require a much greater repayment than the excess received.”
“Society places tax practitioners in a position of trust. Their customers provide them with some of their most sensitive personal information. When that trust is violated and the information is abused for fraudulent purposes, it causes significant harm not only to the individuals who are directly victimized but to the entire community,” said Goss. “IRS-CI special agents are working tirelessly to protect taxpayers from fraud and investigate potential unscrupulous tax return preparers.”
One such notable recent case involved a local tax return preparer who was ordered to federal prison for a second time for preparing false tax returns and obstructing the IRS in its enforcement of federal income tax laws.
Cedric Keith Oliphant, who was previously charged with and convicted of preparing dozens of false 2006-08 client tax returns, was released on bond in that case under a condition that he have no involvement in the preparation of tax returns other than his own. However, while awaiting sentencing, Oliphant resumed preparing fraudulent tax returns, attempting to hide his activity by putting the business and bank accounts in other people’s names.
He was sentenced 33 months on the earlier case and released from prison Aug. 26, 2016. A week later, he was taken into custody on the second case and ordered into custody. He later pleaded guilty to those charges and is now serving another 28-month federal prison sentence. He was further ordered to pay more than $725,000 in restitution for both cases. The Financial Litigation Unit of the United States Attorney’s Office has already seized $205,000 in cash, three cars worth $32,600 and Oliphant’s personal residence in Huntsville as partial satisfaction of his restitution obligation.In addition to this significant sentencing, the U.S. Attorney’s Office has recently filed cases against seven other tax return preparers for aiding and assisting in the preparation and electronic filing of materially false U.S. Individual Income Tax Returns.
Yesterday, authorities arrested Ryan Damont Akers following the return of an indictment charging 15 counts of willfully aiding and assisting in the preparation of false U.S. Individual Income Tax Returns for others. He is expected to make his initial appearance before U.S. Magistrate Judge Nancy Johnson at 2:00 p.m. today. The U.S. Individual Income Tax Returns listed in the indictment cover years 2012 through 2014. The false items variously claimed on the returns include, among others, false amounts of gifts to charity by cash or check, false unreimbursed employee expenses, false losses from sole proprietorships and false Schedule D net long term capital losses, according to the indictment.
Also arrested yesterday was Dale Bradford Harding, charged with 15 counts of willfully aiding and assisting in the preparation of false U.S. Individual Income Tax Returns for others as well as one count of willfully filing a false income tax return for himself. Those tax returns cover years 2010 through 2014, with false items variously claimed on the returns including, among others, false amounts of gifts to charity by cash or check, false unreimbursed employee expenses, false losses from sole proprietorships, false Schedule E losses from partnerships or S corporations and false Schedule D net long term capital losses. He is expected to make an initial appearance in federal court in the near future.
Another recent filing includes the case against Yomi Michael John, doing business in Houston as Postal Tax Services. He is charged by criminal information alleging that during calendar years 2010 through 2013, he aided and assisted in the preparation and electronic filing of dozens of materially false 2009 through 2012 U.S. Individual Income Tax Returns for unsuspecting clients. John allegedly included materially false income, expenses, deductions and credits in these tax returns in order to generated at least $214,413 in excessive refunds. John kept a portion of the fraudulent refunds as preparation fees, according to the charges. He is expected to make his initial appearance in federal court on April 12, 2017.
In another separate but similar case, Crystal T. Kemp is charged with 16 counts of willfully aiding and assisting in the preparation of false U.S. Individual Income Tax Returns for others. The 16 false income tax returns that Kemp prepared for others cover tax years 2012 through 2015 with false claims on the returns including false losses from sole proprietorships, false education credits, false earned income credits and false child tax credits, according to the charges. She also allegedly filed two false income tax returns for herself for tax years 2013 and 2014. The indictment alleges these tax returns falsely claimed a much lower income than Kemp actually received from her business, CQ Tax Preparation.
Chester Swanson is yet another return preparer, charged with 21 counts of willfully aiding and assisting in the preparation of false U.S. Individual Income Tax Returns for others. The 21 U.S. Individual Income Tax Returns listed in the indictment cover years 2012 through 2015. The false items allegedly included on those return include false amounts of medical expenses, false amounts of gifts to charity, false unreimbursed employee expenses, false losses from sole proprietorships, false education credits and false deductions for tuition and fees. He is set for trial Aug. 14, 2017.
Finally, Derwin Blackshear and Terranjala “Denise” Wilder Smith operated a return preparer business known as Level One Tax Service in Houston. They were indicted earlier this year on charges they prepared and filed false tax returns reporting false wages and withholding taxes for clients for tax years 2011 through 2014. A total of 25 individual returns were charged in the indictment which resulted in fraudulent refunds totaling more than $250,000. Blackshear and Wilder allegedly received a portion of the fraudulent refunds as fees for preparing and filing the fraudulent tax returns. They are set for trial Sept. 11, 2017.
Each count of aiding and assisting in the preparation of false income tax returns is up to three years in federal prison and a possible $250,000.
IRS-CI conducted all of the investigations in these matters. Assistant U.S. Attorneys Jimmy Sledge, Charles J. Escher and Justin Martin are prosecuting the cases.
An indictment or information is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Mercedes Man Convicted of Receiving Child Pornography VideosRead the Press Release
McALLEN, Texas – A 21-year old resident of Mercedes has entered a guilty plea to one count of receipt of child pornography, announced Acting U.S. Attorney Abe Martinez.
Gabriel Eduardo Sanchez came to the attention of law enforcement following an out-of-state investigation which began Sep. 17, 2015, into another individual who was arrested for electronically sending images of child pornography over the Internet. Through that investigation, it was determined that this individual had shared child pornography with Sanchez while utilizing the Kik messenger app.
On Sept. 14, 2016, FBI agents executed a federal search warrant at Sanchez’s Mercedes residence, during which time they seized several electronic devices and digital media storage devices. A forensic examination revealed more than 2,000 videos and in excess of 1,000 images of child pornography involving children who were clearly young engaged in sexually explicit conduct. These videos included children under the age of 12 involved in sadistic conduct, bondage and other depictions of violence.
During the plea today, Sanchez admitted he downloaded, received and shared child pornography on Kik Messenger and WhatsApp and saved the images on multiple storage devices.
U.S. District Judge Ricardo Hinojosa accepted the guilty plea and set sentencing for June 14, 2017. At that time, Sanchez 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 FBI conducted the investigation.
This case, prosecuted by Assistant U.S. Attorney Alex Benavides, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former DEA Agent Sent to Prison on Child Pornography ChargesRead the Press Release
HOUSTON – A Massachusetts man who formerly resided in McAllen has been ordered to federal prison following his conviction of one count of access with intent to view child pornography, announced Acting U.S. Attorney Abe Martinez. James Patrick Burke, 39, was a former special agent with the Drug Enforcement Administration (DEA) and pleaded guilty June 2, 2016.
Today, U.S. District Judge Alfred H. Bennett took into consideration Burke’s conduct as well as his law enforcement and military service and ordered him to serve 84 months in prison. In handing down the sentence, Judge Bennett stated he was repulsed by the crime Burke committed and was unmoved by the lengthy statement Burke made in court in which he attempted to shift the blame elsewhere. Burke was further ordered to pay $4,000 in restitution to a known victim and will serve 15 years of supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. He will also be ordered to register as a sex offender.
Burke came to the attention of law enforcement after investigators found evidence he was accessing files from a website known to contain child pornography. A search warrant was executed at Burke’s McAllen residence on Aug. 14, 2015, at which time investigators seized a laptop computer and a desktop computer. Burke admitted downloaded and viewed child pornography from the Internet, but would use forensic wiping software to delete the images and movies.
The forensic examination revealed remnants of the TOR browser which Burke had used to access the child pornography website as well as forensic wiping software. Agents also found remnants of the movie titles that are suggestive of child pornography.
An examination of what was collected from the server side of the website showed that Burke had accessed a total of 77 threads which contained 345 contact sheets with approximately eight images of child pornography per sheet. These images included children under the age of 12, bondage, acts of violence and children younger than two years of age. Some of the images are of known victims as identified through the National Center for Missing and Exploited Children.
The FBI conducted the investigation.
Previously released on bond, Burke 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.
This case, prosecuted by Assistant U.S. Attorneys Kimberly Ann Leo, Linda Requenez and Alexandro Benavides, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Cypress Man Gets 25 Years for Multiple Convictions Related to Child PornographyRead the Press Release
HOUSTON – A 35-year-old Cypress man has been handed a significant federal prison term for production, distribution and possession of child pornography, announced Acting U.S. Attorney Abe Martinez.
A federal grand jury in the Southern District of Texas (SDTX) indicted Joshua Ray Johnson for production and possession of child pornography. He was also charged with distribution of child pornography in the District of Alaska which was later transferred to the SDTX. He pleaded guilty to all the charges Aug. 9, 2016.
Today, U.S. District Judge Nancy Atlas ordered he serve 300 and 240 months for the production and distribution convictions, respectively. The sentences will run concurrently for a total 300-month-prison term. At the hearing today, the father of the victim appeared in court and stated that no parent should have to go through what he has. In handing down the sentence, Judge Atlas stated that what Johnson did was abhorrent and deplorable. Johnson will be on supervised release for life following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. He will also be ordered to register as a sex offender.
The investigation began in the District of Alaska where a special agent with Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) was acting in an undercover capacity working to combat online child exploitation. Authorities discovered Johnson took lewd and lascivious photos of a two-year-old female victim and distributed them via the Internet. The images showed her legs spread apart and focused on the toddler’s genitalia.
Based on the images received in Alaska, a search warrant was executed locally and the victim was identified. In addition to the 70 images of the victim that Johnson produced, there were more than 2000 images and videos of child pornography. The National Center for Missing and Exploited Children (NCMEC) identified 22 known series (identified victims) in Johnson’s possession. NCMEC also indicated other law enforcement agencies in investigations around the world have seen the images Johnson produced. The victim in this case is now the subject of a particular series as identified by NCMEC.
Johnson will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
HSI in Alaska and Houston conducted the investigation.
This case, prosecuted by Assistant U.S. Attorney Sherri L. Zack, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Mexican Truck Driver and a Laredo Woman Convicted of Trafficking DrugsRead the Press Release
LAREDO, Texas – A Nuevo Laredo man and a Laredo woman have entered guilty pleas for their roles in a conspiracy to traffic drugs via the World Trade Bridge, announced Acting U.S. Attorney Abe Martinez.
Daniel Rodirugez Reyna, 45, entered his plea to conspiracy to posses with the intent to distribute heroin and methamphetamine. Vanessa Bernal, 33, pleaded guilty for her participation as a co-conspirator in the methamphetamine conspiracy.
The investigation began in 2014 when authorities learned of a possible drug transaction with a commercial truck driver expected to be crossing drugs via the World Trade Bridge in Laredo. Upon conducting surveillance, they observed Reyna meet with a confidential source at a warehouse in Laredo as he placed a white plastic bag inside the source’s front passenger window. After he departed the area, authorities were able to obtain the bag, which contained three bundles wrapped in clear cellophane wrap and black electrical tape. Laboratory analysis confirmed the three bundles all contained heroin with a net weight of 2.85 kilograms.
On March 25, 2015, agents conducted surveillance of the same white semi-truck Reyna was driving after it crossed in to the United States from Mexico via the World Trade Bridge. Law enforcement followed Reyna as he drove the a warehouse on El Gato Road in Laredo. Shortly thereafter, a red Dodge Journey arrived. Bernal was later identified as the driver. Reyna then exited his vehicle, carrying a plastic shopping bag and placed it in the back seat of Bernal’s vehicle.
After they departed, authorities conducted a traffic stop and found the plastic bag. Inside, they discovered four bundles wrapped in brown tape which all contained crystal methamphetamine with a net weight of 3.9 kilograms.
U.S. District Judge Marina Garcia Marmolejo accepted the pleas today and set sentencing for July 31, 2017. At that time, both face a minimum 10 years and up to life for the conspiracy to possess with intent to distribute methamphetamine. Reyna faces the same penalty for the heroin conspiracy. Bernal was permitted to remain on bond pending that hearing, while Reyna will remain in custody.
The Drug Enforcement Administration conducted the investigation with the assistance of task force members of the Webb County District Attorney’s Office and the Laredo Police Department. Assistant U.S. Attorney Mary Lou Castillo is prosecuting the case.
Mercedes Man Gets Hefty Sentence for Transporting CocaineRead the Press Release
McALLEN, Texas – A 37-year-old Mercedes resident has been ordered to federal prison for possessing with the intent to distribute approximately 84 kilograms of cocaine, announced Acting U.S. Attorney Abe Martinez. Martin Perez pleaded guilty March 31, 2016.
Today, Senior U.S. District Judge Janice Graham Jack ordered Perez to serve a total of 262 months in prison to be immediately followed by 10 years of supervised release. In handing down the sentence, Judge Jack noted his previous conviction of possessing with the intent to distribute marijuana in 2005 and his prior aggravated assault conviction.
On Feb. 1, 2016, Perez was driving a tractor-trailer in Kleberg County when he was stopped for a traffic violation. A search of the trailer he was hauling resulted in the discovery of approximately 84 kilograms of cocaine hidden in a compartment in the bed of the trailer.
Perez has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration, Immigration and Customs Enforcement’s Homeland Security Investigations and Kleberg County Sheriff’s Office investigated the case. Assistant U.S. Attorney Joseph Leonard prosecuted the case.
Female Drug Smuggler Sent to Federal PrisonRead the Press Release
LAREDO, Texas – A 32-year-old resident of Guadalajara Jalisco, Mexico, has been ordered to prison following her conviction of conspiracy to import cocaine, announced Acting U.S. Attorney Abe Martinez. Susana Carolina Enriquez-Mendez pleaded guilty Dec. 6, 2016.
Late this afternoon, U.S. District Judge Marina Garcia Marmolejo sentenced Enriquez-Mendez to 37 months in federal prison. Not a U.S. citizen, she is expected to face deportation proceedings following completion of her prison term.
On Sept. 24, 2016, Enriquez-Mendez approached the Lincoln Juarez Bridge in Laredo as a passenger in a Mexican taxi cab. After a thorough inspection, agents discovered 4.38 kilograms of cocaine hidden in the inner lining of her suitcase and placed her under arrest.
She has been in custody since her arrest where she will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Customs and Border Protection and Immigrations and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney José Angel Flores Jr. prosecuted the case.
Printing and Packaging CEO Pleads Guilty to Trafficking in Counterfeit Labels and PackagingRead the Press Release
HOUSTON – A 48-year-old California resident has entered a guilty plea to trafficking in counterfeit labels and packaging, announced Acting U.S. Attorney Abe Martinez.
Paul S. Rodriguez Jr. was the CEO of Action Packing and Design Inc. in Santa Ana, California. Between July 2015 and December 2016, Rodriguez intentionally trafficked in counterfeit labels and packaging by manufacturing, and then shipping to Houston, counterfeit and trademarked Frontline, Frontline Plus and Merial veterinary product labels and packaging. The labels and packaging were originally marketed by Merial - an animal health company located in Duluth, Georgia
During this same period, Rodriguez also intentionally trafficked in counterfeit trademarked Rimadyl labels, a veterinary product that Zoetis marketed. Zoetis is a health company located in Florham Park, New Jersey.
Sentencing is currently set for Oct. 2, 2017, before U.S. District Judge Nancy F. Atlas, at which time Rodriguez faces up to 10 years in federal prison and a possible $2 million fine. He was permitted to remain on bond pending that hearing.
The Food and Drug Administration-Office of Criminal Investigations and the Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U. S. Attorney Daniel C. Rodriguez is prosecuting the case.
Doctor, Pharmacist and Recruiter Sentenced in Opioid Diversion ConspiracyRead the Press Release
HOUSTON – Three Houston residents have been ordered to federal prison for their roles in an oxycodone dispensation and distribution conspiracy, announced Acting United States Attorney Abe Martinez.
Dr. Richard Williams, 77, was a physician practicing general preventive medicine in the Houston area, while Agnes Osire, 51, was a pharmacist in the Houston area since 2008. Richard Flanagan, 63, was a recruiter who would find persons to act as patients to acquire prescriptions for oxycodone. All previously pleaded guilty their roles in the conspiracy.
Today, U.S. District Judge Lynn Hughes ordered Williams to serve 60 months in federal prison. Osire received a sentence of 45 months, while Flanagan was sentenced to a 38-month-term of imprisonment.
Williams was responsible for the illicit issuance of prescriptions for oxycodone, resulting in the dispensation of more than 32,000 pills of 30-milligram-strength oxycodone in March and April 2014. He was aware that these prescriptions were not issued for a legitimate medical purpose and, on many occasions, pre-signed prescriptions knowing they would be used by others to acquire and sell for profit oxycodone pills.
According to her plea, Osire agreed to fill three prescriptions on April 8, 2014, and was paid in cash for filling these prescriptions. Each prescription was for 120 pills of 30-milligram strength oxycodone.
Flanagan, who admitted to being a recruiter, would take the so-called patients to pharmacies to get the prescriptions filled. He also sold the oxycodone pills for profit on the street. Evidence specifically demonstrated that Flanagan illegally acquired over 1,000 pills in March and April of 2014.
Williams and Osier was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future. Flanagan has been and will remain in custody.
The Tactical Diversion Squad of the Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorney Bryan K. Best is prosecuting the case.
Three Sentenced to Prison in Identity Theft and Illegal Employment ConspiracyRead the Press Release
HOUSTON – Two El Salvadorian nationals who were residing in Houston have been ordered to federal prison following their convictions on all counts related to a conspiracy to employ 10 or more unauthorized aliens within a 12-month period, announced Acting U.S. Attorney Abe Martinez. A federal jury convicted Rudy Alexander Martinez, 36, and Israel Arquimides Martinez, 44, on April 8, 2016, following a two-week trial and approximately six hours of deliberation. Both were convicted of the conspiracy as well as employing unauthorized aliens, encouraging and inducing undocumented aliens to come to reside in the United States and conspiracy to do same as well as aggravated identity theft. Also sentenced today was Ceasar Santiago Arroyo, 51, of Houston, who pleaded guilty to the conspiracy.
Today, U.S. District Judge Melinda Harmon ordered Rudy Martinez and Israel Martinez to serve 94 and 87 months, respectively. Rudy Martinez received 70 months for the conspiracy and immigration offenses as well as an additional 24 months for the identity theft which must be served consecutively. Israel Arquimides Martinez will serve 63 months plus the consecutive 24 months. Arroyo was ordered to serve a 27-month-term of imprisonment. At the hearing, the court found that both Rudy Martinez and Israel Martinez played an aggravating role in the commission of the offense as supervisors or managers. In handing down the sentence, Judge Harmon noted that the offense involved more than 100 aliens. Judge Harmon also found that Rudy Martinez obstructed justice by testifying falsely under oath and threatening a witness. Not U.S. citizens, both are expected to face deportation proceedings following his release from prison.
At trial, the jury heard that both defendants were employees of Waste Management and worked at one of the company’s locations in Houston. RudyMartinez was a commercial route manager, while Israel Martinez was the residential operations lead driver. From on or around July 30, 2008, and continuing until on or around April 24, 2012, the defendants conspired to hire and continued to employ aliens they knew were unauthorized to work in the U.S. at the company.
Federal law requires employers to hire only U.S. citizens and aliens who are authorized to work here. However, the defendants and others hired manual laborers with little or no regard to their legal work status. Internal audits were conducted, after which the defendants and co-conspirators failed to take corrective measures to ensure the employing company hired workers authorized to work in the country. They also continued to employ undocumented aliens after receiving information, in some cases from the aliens themselves, which would indicate the person was not authorized to work in the U.S.
The jury also heard that the defendants encouraged undocumented aliens to obtain false documentation and assigned false identities to undocumented aliens. In some cases, they also provided the undocumented aliens with employment documents related to the false identity the aliens assumed so they could remain employed as helpers at the waste disposal company’s Houston location.
The individuals whose identities were assumed did not authorize or even know their identities were assumed by these undocumented aliens at the direction and encouragement of the conspirators. These individuals were often former employees of the companies, or individuals who had applied for employment but were never hired. Their information was stolen from documentation and records they executed in connection with their application for employment. The defendants and their co-conspirators would enter these individuals’ information into the payroll system and the undocumented alien would receive a paycheck for their work under the other individual’s name.
On or around Jan. 31, 2012, the defendants and their co-conspirators “fired” at least 10 helpers they knew to be unauthorized aliens purportedly because the aliens failed to supply documentation establishing they were legally present and authorized to work in the U.S. During the “termination” process, the defendants informed and encouraged unauthorized aliens to assume the identity of actual U.S. citizens or individuals who had legal status to reside and work here. They also informed undocumented aliens they could come back to work if they got “good papers” belonging to other individuals. Following their termination, the defendants and their co-conspirators assigned false identities to the terminated aliens and assisted them with obtaining related identifiers to use for employment and payroll purposes. The defendants then “rehired” at least 10 aliens under their assumed identities.
Rudy and Israel Martinez have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Agents assigned to Homeland Security Investigations - Worksite Enforcement Unit conducted the investigation. Assistant U.S. Attorneys Casey N. MacDonald and Douglas Davis prosecuted the case.