Southern District of Texas
Press releases recorded for this federal judicial district.
Iraqi Refugee Convicted of Attempting to Provide Material Support to ISILRead the Press Release
Omar Faraj Saeed Al Hardan, the 24-year-old Houston resident charged with attempting to provide material support or resources to a designated foreign terrorist organization, has pleaded guilty.
U.S. Attorney Kenneth Magidson, Acting Assistant Attorney General for National Security Mary B. McCord, Special Agent in Charge Perrye K. Turner of the FBI’s Houston Division and Special Agent in Charge Mark Dawson of Immigration and Customs Enforcement’s Homeland Security Investigations in Houston made the announcement.
Al Hardan, a refugee born in Iraq, pleaded guilty today to one count of attempting to provide material support – specifically himself – to the Islamic State of Iraq and the Levant (ISIL). Al Hardan entered the U.S. as a refugee on or about Nov. 2, 2009. Prior to entering the country, Al Hardan was in at least two refugee camps in Jordan and Iraq. After being admitted into the U.S. as an Iraqi refugee, he was granted legal permanent residence status on or about Aug. 22, 2011, and had resided in Houston.
In April 2014, federal agents began investigating Al Hardan who had been communicating with a California man whom he understood was associated with Al-Nusrah front. In those communications, the individual had told Al Hardan that he had previously traveled to Syria to fight for Al-Nusrah and discussed plans to return to Syria with Al Hardan to fight for Al-Nusrah.
Beginning in June 2014 and continuing through 2015, Al Hardan also developed a relationship with a Confidential Human Source (CHS). During that time, they discussed traveling overseas to support ISIL in fighting jihad and various ways to assist ISIL. Al Hardan also said he wanted to be trained in building remote transmitter/receiver detonators for improvised explosive devices, wanted to learn to use cell phones as the remote detonators and wanted to build remote detonators for ISIL. Al Hardan indicated he taught himself how to make remote detonators by accessing online training videos and other resources he found online and showed the CHS a circuit board he built to be used as a transmitter for a detonator.
On Nov. 5, 2014, Al Hardan took an oath of loyalty to ISIL, according to the plea agreement. Two days later, Al Hardan and the CHS participated in approximately one hour of tactical weapons training with an AK-47 that Al Hardan indicated he wanted.
During the investigation, Al Hardan had also posted many statements on social media in support of ISIL. One of those included a photo of a Humvee with an ISIL flag. Above the photo, Al Hardan posted, “ISIS yesterday in Iraq, today in Syria and Allah willing, tomorrow in Jerusalem.” He also made numerous statements about his plans to travel to Syria and fight alongside ISIL and become a martyr. In one instance he said “I want to blow myself up. I want to travel with the Mujahidin. I want to travel to be with those who are against America. I am against America.”
Upon his arrest in January 2016, investigators discovered training CDs on how to build remote detonators, electronic circuitry components, tools used to build circuitry, multiple cell phones (that had not been activated), a prayer list for committing Jihad and becoming a martyr and the ISIL flag.
Al Hardan has been and will remain in custody pending his sentencing hearing, set for Jan. 17, 2017. At that time, he faces up to 20 years in federal prison and a possible $250,000 fine.
The FBI’s Joint Terrorism Task Force and HSI conducted the investigation with the assistance of the Houston Police Department. Assistant U.S. Attorneys S. Mark McIntyre and Ralph Imperato are prosecuting the case with assistance of the National Security Division’s Counterterrorism Section.
Iraqi Refugee Convicted of Attempting to Provide Material Support to ISILRead the Press Release
HOUSTON – Omar Faraj Saeed Al Hardan, the 24-year-old Houston resident charged with attempting to provide material support or resources to a designated foreign terrorist organization, has pleaded guilty.
U.S. Attorney Kenneth Magidson, Acting Assistant Attorney General for National Security Mary B. McCord, Special Agent in Charge Perrye K. Turner of the FBI’s Houston Division and Special Agent in Charge Mark Dawson of Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Houston made the announcement.
Al Hardan, a refugee born in Iraq, pleaded guilty today to one count of attempting to provide material support – specifically himself – to the Islamic State of Iraq and the Levant (ISIL). Al Hardan entered the United States as a refugee on or about Nov. 2, 2009. Prior to entering the country, Al Hardan was in at least two refugee camps in Jordan and Iraq. After being admitted into the U.S. as an Iraqi refugee, he was granted legal permanent residence status on or about Aug. 22, 2011, and had resided in Houston.
In April 2014, federal agents began investigating Al Hardan who had been communicating with a California man whom he understood was associated with Al-Nusrah front. In those communications, the individual had told Al Hardan that he had previously traveled to Syria to fight for Al-Nusrah and discussed plans to return to Syria with Al Hardan to fight for Al-Nusrah.
Beginning in June 2014 and continuing through 2015, Al Hardan also developed a relationship with a Confidential Human Source (CHS). During that time, they discussed traveling overseas to support ISIL in fighting jihad and various ways to assist ISIL. Al Hardan also said he wanted to be trained in building remote transmitter/receiver detonators for improvised explosive devices, wanted to learn to use cell phones as the remote detonators and wanted to build remote detonators for ISIL. Al Hardan indicated he taught himself how to make remote detonators by accessing online training videos and other resources he found online and showed the CHS a circuit board he built to be used as a transmitter for a detonator.
On Nov. 5, 2014, Al Hardan took an oath of loyalty to ISIL, according to the plea agreement. Two days later, Al Hardan and the CHS participated in approximately one hour of tactical weapons training with an AK-47 that Al Hardan indicated he wanted.
During the investigation, Al Hardan had also posted many statements on social media in support of ISIL. One of those included a photo of a Humvee with an ISIL flag. Above the photo, Al Hardan posted, “ISIS yesterday in Iraq, today in Syria and Allah willing, tomorrow in Jerusalem.” He also made numerous statements about his plans to travel to Syria and fight alongside ISIL and become a martyr. In one instance he said “I want to blow myself up. I want to travel with the Mujahidin. I want to travel to be with those who are against America. I am against America.”
Upon his arrest in January 2016, investigators discovered training CDs on how to build remote detonators, electronic circuitry components, tools used to build circuitry, multiple cell phones (that had not been activated), a prayer list for committing Jihad and becoming a martyr and the ISIL flag.
Al Hardan has been and will remain in custody pending his sentencing hearing, set for Jan. 17, 2017. At that time, he faces up to 20 years in federal prison and a possible $250,000 fine.
The FBI’s Joint Terrorism Task Force and HSI conducted the investigation with the assistance of the Houston Police Department. Assistant U.S. Attorneys S. Mark McIntyre and Ralph Imperato are prosecuting the case with assistance of the National Security Division’s Counterterrorism Section.
BISD Employee Sentenced to Federal Prison for Stealing More Than $300,000 in Cafeteria FundsRead the Press Release
BROWNSVILLE, Texas – An accounting clerk in the Food and Nutrition Services Division of the Brownsville Independent School District (BISD) has been ordered to prison for stealing cash proceeds from concessions sales at four schools for nearly six years, announced U.S. Attorney Kenneth Magidson. Leticia Arreola, 39, of Los Fresnos, entered a guilty plea Wednesday, June 1, 2016.
Today, U.S. District Judge Rolando Olvera followed the government’s recommendation and ordered Arreola to serve a 24-month prison sentence. She was further ordered to pay $332,571.41 in restitution. In handing down the sentence, Judge Olvera indicated that Arreola abused a position of public trust in embezzling school funds. In denying Arreola’s request for a reduced sentence, Judge Olvera noted that public corruption is a matter of great concern and believed her sentence needed to reflect that concern. Arreola must also serve three years of supervised release following completion of the prison term.
From at least 2010 until January 2016, Arreola used her position to embezzle approximately $332,571.46. The embezzled money represented cash proceeds from the concessions sales at Faulk Elementary, Brownsville Early College High School (BECHS), Brownsville Learning Academy (BLA) and the Brownsville Academic Center (BAC).
BISD utilizes substantial federal funding each year to help provide cafeteria lunches for its’ students. This funding is well in excess of $10,000 yearly. Besides providing cafeteria lunches, BISD also receives cash payments from students for concession style food, such as ice cream and cookies.
Schools that perform concession services are required to send their cash proceeds to the BISD affiliated bank for proper accounting and deposit. The cash deposits are supposed to be placed in a deposit bag and then delivered on a daily or weekly basis via armored car to the BISD affiliated bank. At times, however, schools would miss their scheduled time to provide the deposits to the armored car. In those instances, the deposit bags were delivered to Arreola who would then steal the money for her own purposes.
Eventually, Arreola was able to arrange for cash deposits from Faulk, BECHS, BLA and the BAC to be delivered directly to her. When money came in from these schools, she would simply take the money out of the deposit bags and place them in her purse until she left at the end of her work-day. Ultimately, Arreola was asked to provide documentation about the receipt of money from these schools over time and she was unable to do so.
A review of the Arreola’s bank records from 2010 to 2016 demonstrated the extent of the embezzling scheme. While her legitimate salary with BISD was approximately $20,000 annually, records reflect that she embezzled more than $48,000 in 2010, $46,538 in 2011, $35,561 in 2012, more than $63,000 in both 2013 and 2014, another $71,532 in 2015 and a final $4,712 in 2016.
Arreola would spend proceeds from the $332,571.46 she stole on living expenses, vacations, entertainment and shopping.
Arreola was permitted to remain on bond and voluntarily surrender to the U.S. Marshals Service on Nov. 10, 2016.
The BISD Police Department and the FBI investigated with assistance from the Cameron County District Attorney’s Office and cooperation of BISD. Assistant U.S. Attorneys Jody Young and Israel Cano III prosecuted the case.
“Chief” Sentenced for Selling Membership in Fake Indian TribeRead the Press Release
BROWNSVILLE, Texas – A former Brownsville man, now living in Waco, has been ordered to federal prison following his convictions of selling membership in a non-recognized Indian tribe, announced U.S. Attorney Kenneth Magidson. Humberto Reveles, 61, pleaded guilty in March 2015.
Today, U.S. District Judge U.S. District Judge Andrew S. Hanen handed Reveles a 33-month sentence to be immediately followed by three years of supervised release. He was further ordered to pay restitution of $198,795 to 144 victims of the scheme. In handing down the sentence, Judge Hanen noted that this scheme was just as bad as coyotes smuggling people past the checkpoint. He also noted that this crime was victimizing the individuals who could least afford it (undocumented aliens).
At the time of his plea, Reveles admitted to selling membership in the Yamassee tribe as part of a scheme to defraud. Reveles was the chief, and later grand chief, of the tribe. He claimed the tribal identification documents that came with membership would allow tribe members to remain in the United States, prevent them from being deported, allow them to travel within and work in the country, despite not having immigration status.
Reveles opened an office where he would meet with prospective tribe members in addition to holding informational meetings. Prospective tribe members would pay Reveles or his employees and were to receive tribal naturalization certificates, tribal identification cards and tribal drivers’ licenses. The documents were to be presented in support of the false immigration claims underlying the scheme.
The Yamassee tribe not a federally-recognized Indian tribe nor recognized by the U.S. Department of State.
Previously released on bond, Reveles was permitted to remain on bond and voluntarily surrender in December 2016.
The case was investigated by Homeland Security Investigations and U.S Department of State - Diplomatic Security Service with assistance from Border Patrol, FBI and the Brownsville Police Department. Assistant U.S. Attorney Joseph Leonard is prosecuting the case.
Local Man Indicted for Defrauding FedEx of Thousands in Shipping FeesRead the Press Release
HOUSTON ‐ A 31-year-old Pakistani national has been charged with multiple counts of mail and bank fraud for defrauding FedEx for shipping fees he incurred as part of his cell phone and electronics export business, announced U.S. Attorney Kenneth Magidson.
The indictment alleges that Babar Butt, who resided in multiple locations in Houston and Spring, operated an electronics export business and routinely shipped items to Dubai, United Arab Emirates.
Butt was taken into custody this morning and is expected to make his initial appearance before U.S. Magistrate Judge Nancy Johnson at 2:00 p.m. today.
The indictment alleges that from February 2015 through August 2016, Butt devised a scheme whereby he defrauded FedEx by opening various shipping accounts. He would allegedly ship one or more packages of cell phones and electronics to Dubai and elsewhere until the charges were declined and he could no longer ship on that account. According to the indictment, he would then open new accounts to continue his scheme and would again not pay his shipping invoices, causing significant losses to FedEx. He also cashed several checks drawn on a closed bank account which caused significant losses to Bank of Texas, according to the indictment.
Butt is charged with 14 counts of mail fraud and three counts of bank fraud. If convicted, he faces up to 20 years in prison for a conviction of mail fraud. The bank fraud counts carry a maximum of 30 years imprisonment as well as a possible $1 million maximum fine. The indictment also seeks a money judgment equal to the total value of the property subject to forfeiture - estimated to be, but not limited to, approximately $287,679.
The FBI conducted the investigation. Assistant U.S. Attorney Heather Winter is prosecuting the case.
An indictment is merely an accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless and until convicted through due process of law.
Registered Sex Offender Sentenced for Possession of Child PornographyRead the Press Release
HOUSTON – A 45-year old Spring man has been ordered to federal prison for his conviction of possessing child pornography, announced U.S. Attorney Kenneth Magidson.
Gregg Carl Baird had been convicted of state charges in March 2010 of possession of child pornography and ordered to register as a sex offender upon his release in 2014. He pleaded guilty to the new federal charge on Jan. 8, 2016.
Today, U.S. District Judge David Hittner handed Baird a sentence of 121 months in prison. He was further ordered to serve the remainder 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. Baird will also again be ordered to register as a sex offender.
Baird was identified as part of a nationwide investigation known as Operation Pacifier. The FBI obtained a search warrant based on information that led investigators to believe Baird was accessing files from a website known to contain child pornography. Forensic analysis on the items seized during the search resulted in the discovery of child pornography images/videos, to include more than 450 videos and 2300 images of child pornography. Several of the videos depicted the penetration of a minor under the age of five and bondage of a child.
Baird will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
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. Led by United States Attorneys’ Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Houston Doctor Sentenced in Conspiracy to Defraud MedicareRead the Press Release
HOUSTON - A Houston doctor has been ordered to federal prison for engaging in a conspiracy to defraud Medicare of more than $6.6 million, announced U.S. Attorney Kenneth Magidson. A federal jury convicted Dr. Leonard Kibert, 65, and his medical clinic administrator, Tsolak Gevorgyan, 30, of all 41 and 44 counts as charged, respectively, following a three-week trial in February 2016.
Today, U.S. District Judge Keith P. Ellison, who presided over the trial, sentenced Kibert to 63 months in prison to be followed by three years of supervised release. He was further ordered to pay restitution in the amount of $2.89 million. Gevorgyan will be sentenced on Nov. 8, 2016. Another defendant - Robert Manning, 61, of Houston – had pleaded guilty for his role and was sentenced earlier this week to 12 months and one day in prison. Two others are also pending sentencing.
The evidence at trial established that all of the Medicare billing for alleged diagnostic testing at the New Life Sleeping & Allergy Disorder Center, located at 2117 Chenevert Street in Houston, was fraudulent because the testing either was never performed or was not medically necessary. Kibert owned New Life and Gevorgyan was the manager. Kibert and Gevorgyan filed false claims with Medicare for medical procedures which either were never performed or were not medically necessary.
Kibert was the only doctor working at the New Life Center. The patients were brought to the clinics by recruiters/marketers like Manning who Gevorgyan paid by for bringing the patients.
Kibert was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The Texas Medical Board suspended Kibert’s license to practice medicine on Aug. 12, 2016 based on his convictions.
The criminal charges are the result of a joint investigation conducted by agents of the FBI, U.S. Department of Health and Human Services - Office of Inspector General, Internal Revenue Service - Criminal Investigation and the Medicaid Fraud Control Unit of the Texas Attorney General's Office. Assistant U.S. Attorney (AUSA) Al Balboni and Special AUSA Rodolfo Ramirez prosecuted the case.
Identity Thief Who Used Citizen’s Identity to Try to Obtain Passport ConvictedRead the Press Release
HOUSTON – A 37-year-old undocumented immigrant who had been using the identity of a United States citizen for almost a decade has been convicted, announced U.S Attorney Kenneth Magidson. Martina Azucena Melendrez Acevez was caught when she attempted to use the other woman’s identity to obtain a passport. Today, she pleaded guilty to making false claims to U.S. citizenship and making false statements in a passport application.
Since 2004, Acevez had been using the Social Security card and birth certificate of a 29-year-old Nebraska woman who was born in Houston to obtain driver’s licenses, identification cards and employment in the United States.
In late 2014, Aceves applied for a passport with the Department of State using the victim’s identity. Authorities discovered her true identity by comparing her fingerprints to those provided when obtaining driver’s licenses and identification cards in her real name prior to 2004. In addition, the photographs on her passport application as well as the driver’s licenses and identification cards in her real name and in the name of the victim all matched.
Authorities tracked down the mother, father, two siblings, two children and common-law husband of the victim who all confirmed Aceves was an imposter. In fact, Aceves provided the victim’s mother’s information in her passport application.
In connection with that passport application, Aceves submitted documents which she claimed established that she attended Sutton Elementary in the Houston Independent School District (HISD) under the name of the victim. However, HISD had no record of either the victim or Aceves ever attending and the photographic records of Sutton Elementary School contained no record of Aceves or the victim.
Furthermore, Customs and Border Protection had a record of the victim returning to the United States after spending time abroad. Those records further established that Aceves was an imposter.
The victim in the case has three children residing in Mexico and has been attempting to obtain a passport herself in order to bring her children to the United States. Due to the actions of Aceves, this process has been stalled and the victim has not seen her children for more than two years.
U.S. District Judge Lynn Hughes accepted the plea today and has set sentencing for Nov, 28, 2016. At that time, Aceves faces up to 10 years in federal prison. She will remain in custody pending that hearing.
The Department of State Diplomatic - Security Service conducted the investigation. Assistant U.S. Attorney Adam Goldman is prosecuting the case.
McAllen Man Convicted of Attempted Enticement of an Individual he Believed was a MinorRead the Press Release
McALLEN, Texas – Timinson Erin Jackson, 25, of McAllen, has entered a guilty plea to an indictment charging him with attempted enticement of a minor, announced U.S. Attorney Kenneth Magidson.
From May 25, 2016, to June 3, 2016, Jackson engaged in online communications with a person he thought was a 12-year-old minor female. That individual was actually an undercover agent with Immigration and Customs Enforcement’s Homeland Security Investigations (HSI). During these conversations, which were mostly carried out via text messaging, Jackson attempted to persuade, induce and entice this “minor” into having sex with him.
On June 3, 2016, Jackson arranged to meet the individual at a park in McAllen. He was arrested upon his arrival. At that time, Jackson admitted he intended to have sex with an individual whom he believed was a 12-year old minor female.
U.S. District Judge Randy Crane, who accepted the guilty plea today, has set sentencing for Dec. 13, 2016. At that time, Jackson faces a minimum of 10 years and up to life in federal prison and a possible $250,000 fine. He will remain in custody pending that hearing.
HSI conducted the investigation.
This case, prosecuted by Assistant U.S. Attorney 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."
Corpus Christi Resident Sentenced in Laredo for Marijuana DistributionRead the Press Release
LAREDO, Texas – A 47-year-old Corpus Christi man has been sentenced in Laredo federal court following his conviction of possession with the intent to distribute 1,000 kilograms or more of marijuana and possession of a firearm in furtherance of a drug crime, announced U.S. Attorney Kenneth Magidson. A federal Jury convicted Michael Taylor on May 4, 2016, following a three-day trial.
Today, U.S. District Judge George P. Kazen handed Taylor a 180-month sentence to be immediately followed by five years of supervised release. He was further ordered to complete 200 hours of community service in lieu of a fine.
At trial, the government presented evidence that on Aug. 31, 2015, Taylor attempted to smuggle a load of marijuana in a pickup truck through a ranch located east of Laredo near Bruni. After Border Patrol (BP) agents attempted to stop Taylor, he led them on a four-mile high-speed chase along Highway 359 before turning off the highway and into the brush outside of Hebbronville. He travelled approximately 150 yards before abandoning the vehicle and absconding on foot.
Border Patrol reached the truck but it was engulfed in flames within minutes. They contacted the Hebbronville Volunteer Fire Department who extinguished the fire that was beginning to spread into the surrounding brush.
Meanwhile, BP agents tracked Taylor through the brush with the assistance of BP’s Air Operations. They eventually found him approximately 100 yards from the pickup truck hiding in the brush. At the time of his arrest, agents also discovered a loaded Ruger handgun in his back pocket.
Taylor will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
BP and the Drug Enforcement Administration investigated. Assistant U.S. Attorney Christopher S. Coker and Michael Bukiewics prosecuted the case.
Tomball Business Executive Convicted in $13 Million False Invoicing SchemeRead the Press Release
HOUSTON – The owner of Tinkle Management Inc. (TMI) has entered a guilty plea to charges of wire fraud and money laundering, announced U.S. Attorney Kenneth Magidson.
John Blake Tinkle, 60, of Tomball, admitted today that from 2008 through 2015, he falsely invoiced Houston-based Westlake Chemical Corporation for approximately $13 million in shipping supplies that TMI never delivered.
“For seven years, this defendant cheated local companies out of millions of dollars, using false invoices and fraudulent financing,” said Magidson. “Thanks to the hard work of the FBI and IRS-Criminal Investigation, his scheme was detected and ended. We will continue to aggressively investigate and prosecute corporate fraud, both in the energy industry and across our community.”
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.
U.S. District Judge Alfred Bennett accepted the plea today and has set sentencing for Dec. 8, 2016. At that time, Tinkle faces up to 20 years in federal prison for the wire fraud and 10 years for money laundering. He could also be ordered to pay a $250,000 fine. He was permitted to remain on bond pending that hearing.
The FBI and IRS-Criminal Investigation conducted the investigation. Assistant U.S. Attorney Robert S. Johnson is prosecuting the case.
Mexican National Sentenced for Trafficking MethamphetamineRead the Press Release
McALLEN, Texas – Manuel Ivan Reina-Ruiz, of Sonora, Mexico, has been sentenced to 78 months imprisonment for importing methamphetamine into the United States from Mexico, announced U.S. Attorney Kenneth Magidson.
At the time of his guilty plea, he admitted that on Jan. 16, 2016, he had driven a vehicle from Mexico into the United States through the Progreso port of entry, knowing the vehicle contained a controlled substance. Upon inspection, Customs and Border Protection (CBP) officers discovered methamphetamine hidden within the quarter panels and all four tires of the vehicle. Agents seized numerous bricks of the drug weighing approximately 62 kilograms.
Reina has been in custody without bond since his arrest in January 2016, where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The case was investigated by Immigration and Customs Enforcement’s Homeland Security Investigations and CBP. Assistant U.S. Attorney Linda Requénez prosecuted the case.
Local Man Convicted of Sexual Exploitation of Children and Tax FraudRead the Press Release
HOUSTON – Benjamin Douglas Guidry has entered a guilty plea to two counts of sexual exploitation of children and for knowingly making a false claim in the nature of preparing and filing a false tax return, announced U.S. Attorney Kenneth Magidson along with Special Agent in Charge D. Richard Goss of IRS-Criminal Investigation (CI) and Special Agent in Charge Perrye K. Turner of the FBI.
“The diligent investigative efforts of IRS-CI special agents not only uncovered evidence of tax crimes but also discovered something much, much, worse, beginning with the discovery of disturbing images on this defendant’s computer,” said Goss. “The collaborative effort between IRS-CI and the FBI ultimately led to Guidry pleading guilty not only to the tax crimes in question but also to the sexual exploitation of children.”
According to the plea agreement filed in the record of the case and to statements made in court, the IRS had been investigating Guidry for possible tax offenses. In May 2015, authorities executed a search warrant at Guidry’s place of business, Financial Precision Group, at which time they seized several computers and boxes of documents. Agents noticed, among other things, that several files on Guidry’s external hard drive had titles that led the IRS to believe they may contain child pornography. Authorities also noticed text messages on his cell phone that appeared to be inappropriate communications with a minor and a video of a minor.
The FBI joined the investigation and later executed a search warrant at Guidry’s residence. During that search, authorities found items present in the video on Guidry’s cell phone, including clothes worn by one of identified minor victims in the video. They also seized a cell phone and multiple computers.
Guidry was arrested at that time.
On two of Guidry’s external hard drives, authorities ultimately discovered a total of at least 164 images and 28 videos of child pornography. Additionally, a cell phone contained at least three videos of child pornography. One of the videos shows one of the minor victims being penetrated by an adult male. That video contains sounds from the victim demonstrating that the minor, who was protesting what was being done to her, was under the influence of a drug or was deeply sleeping. Another victim discovered she had been recorded on two separate occasions, once via a cell phone propped on the back of a toilet and again by an iPad propped up in the same location.
As to the tax offense, Guidry also agreed in the plea agreement that the intended income tax loss was between $250,000 and $550,000.
U.S. District Judge George C. Hanks Jr. accepted the plea today and has set sentencing for Jan. 5, 2017. At that time, Guidry faces a minimum of 15 and up to 30 years for each of the sexual exploitation charges as well as a maximum of five years for the tax fraud. Each conviction also carries a possible fine of $250,000.
FBI and IRS-Criminal Investigation conducted the investigation. Assistant U.S. Attorneys Sherri L. Zack and Charles J. Escher are prosecuting the case.
Former Attorney and Others Convicted in Money Laundering and Auto Loan SchemeRead the Press Release
HOUSTON – Three people have now been convicted of money laundering for their participation in a Houston-based bank fraud and money laundering scheme, announced U.S. Attorney Kenneth Magidson.
Howard Price Johnson, 62, is a disbarred former attorney from Salt Lake City, Utah, and pleaded guilty today. Jason Ryan Hall, 34, of Houston, and Anissa Lavon Burdett, 49, a resident of Ohio, previously pleaded guilty on Aug. 15, and September 23, 2016, respectively.
The three individuals participated in an automobile loan fraud scheme centered in Houston spanning from April through November 2011. Hall held himself out as a used car dealer who sold luxury vehicles through his alleged Houston car dealerships “EZ Auto Group” and “1st Choice Motors.” Hall’s alleged dealerships, however, existed only as websites that Hall created. They had no physical existence, owned no cars and made no actual auto sales.
Acting as “straw buyers,” Johnson, Burdett and others applied to lenders for auto loans in order to purchase used Mercedes and Lexis cars from Hall’s supposed dealerships. In reality, no vehicles were purchased and Hall had none to sell. In their auto loan applications, the straw buyers made multiple misrepresentations to prospective lenders and submitted fraudulent documents Hall created and supplied in support of the loan applications.
Once the auto loans funded and the funds had been deposited into the bank accounts of the alleged dealerships, Hall kicked-back a portion of the loan funds to the straw buyers. Hall delivered no vehicles to the straw buyers and delivered no vehicle titles to the lenders. The straw buyers failed to pay off their loans, causing the loans to go into default. During the scheme, straw buyers applied for a total of 16 fraudulent auto loans with a combined value of approximately $695,741.
U.S. District Judge Alfred Bennett accepted the pleas and has set sentencing for Dec. 8, 2016. Burdett and Hall will be sentenced Dec. 2, 2016, and Jan. 12, 2017, respectively. At their sentencing, Johnson, Hall and Burdett face up to 10 years in federal prison and a possible $250,000 fine.
IRS-Criminal Investigation and U.S. Secret Service investigated. Assistant U.S. Attorney Robert S. Johnson is prosecuting the case.
Vibra Healthcare to Pay $32.7 Million to Resolve Claims for Medically Unnecessary ServicesRead the Press Release
WASHINGTON - Vibra Healthcare LLC (Vibra), a national hospital chain headquartered in Mechanicsburg, Pennsylvania, has agreed to $32.7 million, plus interest, to resolve claims that Vibra violated the False Claims Act by billing Medicare for medically unnecessary services, the Department of Justice announced today.
“Medicare beneficiaries are entitled to receive care that is determined by their clinical needs and not the financial interests of healthcare providers,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “All providers of taxpayer-funded federal healthcare services, whether contractors or direct billers, will be held accountable when their actions cause false claims for medically unnecessary services to be submitted.”
Vibra operates approximately 36 freestanding long term care hospitals (LTCHs) and inpatient rehabilitation facilities (IRFs) in 18 states. LTCHs provide inpatient hospital services for patients whose medically complex conditions require long hospital stays and programs of care. IRFs are intended for patients needing rehabilitative services that require hospital-level care. The government alleged that between 2006 and 2013, Vibra admitted numerous patients to five of its LTCHs and to one of its IRFs who did not demonstrate signs or symptoms that would qualify them for admission. Moreover, Vibra allegedly extended the stays of its LTCH patients without regard to medical necessity, qualification and/or quality of care. In some instances, Vibra allegedly ignored the recommendations of its own clinicians, who deemed these patients ready for discharge.
“Pursuing and recovering fraudulent billing for unnecessary services is a priority of my office,” stated U.S. Attorney John E. Kuhn Jr. for the Western District of Kentucky. “This significant case against Vibra Healthcare and today’s settlement agreement is but one example of the vigorous work against healthcare fraud taking place in the Western District of Kentucky and across the nation.”
As part of the settlement, Vibra also agreed to enter into a chain-wide corporate integrity agreement with the Inspector General of the U.S. Department of Health and Human Services.
“Medical necessity is fundamental if health providers wish to claim taxpayer funds for medical care,” said Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services’ Office of Inspector General (HHS-OIG). “OIG is committed to protecting precious Medicare dollars and ensuring that beneficiaries receive quality, necessary long term care.”
Part of the allegations resolved by this settlement were originally filed under the qui tam or whistleblower provisions of the False Claims Act by Sylvia Daniel, a former health information coder at Vibra Hospital of Southeastern Michigan. Daniel filed her suit in the Southern District of Texas, where one of Vibra’s LTCHs was located. Under the False Claims Act, a private party, known as a relator, can file an action on behalf of the United States and receive a portion of the recovery. Daniel will receive at least $4 million.
This settlement illustrates the government’s emphasis on combating healthcare fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $30.7 billion through False Claims Act cases, with more than $18.5 billion of that amount recovered in cases involving fraud against federal healthcare programs.
This matter was handled by the Civil Division’s Commercial Litigation Branch; the U.S. Attorneys’ Offices for the Southern District of Texas in Houston and for the Western District of Kentucky; and the HHS-OIG. The qui tam case is captioned United States ex rel. Daniel v. Vibra Healthcare, LLC, Civil Action No. 10-5099 (S.D. Tex.).
The claims resolved by the settlements are allegations only and there has been no determination of liability.
McAllen Man Convicted of Downloading Hundreds of Child Pornography Videos and ImagesRead the Press Release
McALLEN, Texas – A 27-year old resident of McAllen has entered a guilty plea to one count of receipt of child pornography, announced U.S. Attorney Kenneth Magidson along with Special Agent in Charge Shane Folden of Immigration and Customs Enforcement’s Homeland Security Investigations (HSI).
Jorge Trevino-Blanco came to the attention of law enforcement following an investigation which began on Oct. 16, 2015, into persons using the Internet to traffic in child pornography. A special agent with HSI was able to locate and identify a computer as offering to participate in the receipt of child pornography movies and images through the peer-to-peer network on the Internet. Through the investigation, it was determined that the computer was located in a residence in McAllen.
On July 8, 2016, authorities executed a federal search warrant at that residence, during which time they seized two laptop computers and an external hard drive. A forensic examination on the devices revealed a total of 123 videos and 282 images of child pornography involving clearly young children engaged in sexually explicit conduct. These videos and images included children under the age of 12 engaged in sadistic conduct and acts of violence. Some of the videos and images are of known victims as identified through the National Center for Missing and Exploited Children.
Trevino-Blanco admitted he downloaded child pornography from the Internet, thereby receiving the child pornography found on his computers and external hard drive. He further admitted he had been doing so for approximately four years.
U.S. District Judge Micaela Alvarez, who accepted the guilty plea today, has set sentencing for Dec. 8, 2016. At that time, Trevino-Blanco faces a minimum of five and up to 20 years in federal prison and a possible $250,000 fine. He will remain in custody pending that hearing.
HSI conducted the investigation.
This case, prosecuted by Assistant U.S. Attorney 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."
Justice Department Reaches Settlement with Charter Bank to Resolve Allegations of Lending DiscriminationRead the Press Release
Settlement Provides Over $165,000 in Compensation to Hispanic Borrowers Who Obtained Consumer Loans in Texas
The Justice Department announced today that Charter Bank of Corpus Christi, Texas, will maintain uniform pricing policies and pay more than $165,000 as part of a settlement to resolve allegations that it engaged in a pattern or practice of discrimination on the basis of national origin.
The settlement, which is subject to court approval, was filed today along with the department’s complaint in the U.S. District Court for the Southern District of Texas. The complaint alleges that Charter violated the Equal Credit Opportunity Act (ECOA) between 2009 and 2014 by charging higher interest rates to Hispanic borrowers than to similarly situated non-Hispanic borrowers on vehicle-secured consumer loans. The discrimination affected approximately 500 loans made through the bank’s branches. A vehicle-secured consumer loan allows a customer to borrow from the bank by tapping the equity in a car the customer already owns. The complaint alleges that the discrimination occurred because Charter gave its employees discretion to adjust interest rates upward or downward by approximately three percentage points, which was not based on the borrower’s credit risk.
“Lending practices that discriminate against customers because of their national origin violate the law and threaten the foundation of a free and fair economy,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “Working families rely on access to credit to borrow money so they can meet the demands of their daily lives. This settlement will ensure Charter Bank complies with the law, provides relief to consumers and safeguards against discrimination going forward.”
“Fair lending by banks, regardless of national origin, is guaranteed by law,” said U.S. Attorney Kenneth Magidson of the Southern District of Texas. “This case involving Charter Bank shows our commitment to ensure its reality.”
The lawsuit originated from a 2014 referral by the Federal Deposit Insurance Corporation (FDIC) to the department’s Civil Rights Division. Charter is regulated by the FDIC.
Under the settlement, Charter will pay $165,820 to Hispanic victims of discrimination, monitor its loans for potential disparities based on national origin and provide equal credit opportunity training to its employees. Prior to the settlement, Charter revised its loan pricing policies to include objective, non-discretionary and non-discriminatory standards for determining interest rates for consumer loans. This settlement requires Charter to maintain the revised policies for at least four years.
The Justice Department’s enforcement of fair lending laws is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section. Since 2010, the Civil Rights Division has provided over $1.5 billion in monetary relief for individual borrowers and impacted communities through its enforcement of the Fair Housing Act, ECOA and Servicemember’s Civil Relief Act. The Attorney General’s annual reports to Congress on ECOA enforcement highlight the department’s accomplishments in fair lending and are available at www.justice.gov/crt/publications/.
The Civil Rights Division and the U.S. Attorney’s Office of the Southern District of Texas are members of the Financial Fraud Enforcement Task Force, established by President Obama to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes. For more information on the task force, visit www.StopFraud.gov.
Additional information about fair lending enforcement by the Justice Department can be found on the department’s website at www.justice.gov/fairhousing.
Charter Bank Complaint Charter Bank Consent OrderJustice Department Files Discrimination Lawsuit Against Owners and Operators of Houston BarRead the Press Release
The Justice Department filed a lawsuit today against the owners and operators of 360 Midtown, a bar and nightclub located in Houston, alleging that the defendants discriminated against African-American, Hispanic and Asian-American patrons in violation of Title II of the Civil Rights Act of 1964.
The lawsuit, filed today in the U.S. District Court for the Southern District of Texas, alleges that Ayman Jarrah and his company Land Guardian Inc. discriminated against African-American, Hispanic and Asian-American patrons at 360 Midtown, which formerly operated as Gaslamp, by charging such persons a cover charge to enter the establishment, while not imposing such a charge on similarly situated white persons, and denying such persons the right to enter the establishment while admitting similarly situated white patrons.
“When going out to eat at a restaurant or relaxing at bar, no one should ever suffer discrimination because of the color of their skin,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “The Justice Department will continue to vigorously protect the rights of all people to go about their daily lives free from discrimination at bars, restaurants and other public accommodations around the country.”
“A bar’s cover charge based on skin color is prohibited by law,” said U.S. Attorney Kenneth Magidson of the Southern District of Texas. “All places of public accommodation should treat their customers equally. If not, justice will be sought in our courts of law.”
Title II of the Civil Rights Act of 1964 prohibits discrimination on the basis of race, color, religion or national origin in places of public accommodation, such as restaurants, hotels, movie theaters, nightclubs, stadiums and other places of exhibition or entertainment. Under Title II, the Civil Rights Division can obtain injunctive relief that changes policies and practices to remedy customer discrimination. Title II does not authorize the division to obtain monetary damages for customers who are victims of discrimination.
More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Persons who believe they have experienced or witnessed unlawful discrimination in public accommodations may contact the Housing and Civil Enforcement Section at (202) 514-4713.
Gaslamp ComplaintJustice Department Reaches Settlement with Charter Bank to Resolve Allegations of Lending DiscriminationRead the Press Release
WASHINGTON – The Justice Department announced today that Charter Bank of Corpus Christi, Texas, will maintain uniform pricing policies and pay more than $165,000 as part of a settlement to resolve allegations that it engaged in a pattern or practice of discrimination on the basis of national origin.
The settlement, which is subject to court approval, was filed today along with the department’s complaint in the U.S. District Court for the Southern District of Texas. The complaint alleges that Charter violated the Equal Credit Opportunity Act (ECOA) between 2009 and 2014 by charging higher interest rates to Hispanic borrowers than to similarly situated non-Hispanic borrowers on vehicle-secured consumer loans. The discrimination affected approximately 500 loans made through the bank’s branches. A vehicle-secured consumer loan allows a customer to borrow from the bank by tapping the equity in a car the customer already owns. The complaint alleges that the discrimination occurred because Charter gave its employees discretion to adjust interest rates upward or downward by approximately three percentage points, which was not based on the borrower’s credit risk.
“Lending practices that discriminate against customers because of their national origin violate the law and threaten the foundation of a free and fair economy,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “Working families rely on access to credit to borrow money so they can meet the demands of their daily lives. This settlement will ensure Charter Bank complies with the law, provides relief to consumers and safeguards against discrimination going forward.”
“Fair lending by banks, regardless of national origin, is guaranteed by law,” said U.S. Attorney Kenneth Magidson of the Southern District of Texas. “This case involving Charter Bank shows our commitment to ensure its reality.”
The lawsuit originated from a 2014 referral by the Federal Deposit Insurance Corporation (FDIC) to the department’s Civil Rights Division. Charter is regulated by the FDIC.
Under the settlement, Charter will pay $165,820 to Hispanic victims of discrimination, monitor its loans for potential disparities based on national origin and provide equal credit opportunity training to its employees. Prior to the settlement, Charter revised its loan pricing policies to include objective, non-discretionary and non-discriminatory standards for determining interest rates for consumer loans. This settlement requires Charter to maintain the revised policies for at least four years.
The Justice Department’s enforcement of fair lending laws is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section. Since 2010, the Civil Rights Division has provided over $1.5 billion in monetary relief for individual borrowers and impacted communities through its enforcement of the Fair Housing Act, ECOA and Servicemember’s Civil Relief Act. The Attorney General’s annual reports to Congress on ECOA enforcement highlight the department’s accomplishments in fair lending and are available at www.justice.gov/crt/publications/.
The Civil Rights Division and the U.S. Attorney’s Office of the Southern District of Texas are members of the Financial Fraud Enforcement Task Force, established by President Obama to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes. For more information on the task force, visit www.StopFraud.gov.
Additional information about fair lending enforcement by the Justice Department can be found on the department’s website at www.justice.gov/fairhousing.
Justice Department Files Discrimination Lawsuit Against Owners and Operators of Houston BarRead the Press Release
WASHINGTON – The Justice Department filed a lawsuit today against the owners and operators of 360 Midtown, a bar and nightclub located in Houston, alleging that the defendants discriminated against African-American, Hispanic and Asian-American patrons in violation of Title II of the Civil Rights Act of 1964.
The lawsuit, filed today in the U.S. District Court for the Southern District of Texas, alleges that Ayman Jarrah and his company Land Guardian Inc. discriminated against African-American, Hispanic and Asian-American patrons at 360 Midtown, which formerly operated as Gaslamp, by charging such persons a cover charge to enter the establishment, while not imposing such a charge on similarly situated white persons, and denying such persons the right to enter the establishment while admitting similarly situated white patrons.
“When going out to eat at a restaurant or relaxing at bar, no one should ever suffer discrimination because of the color of their skin,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “The Justice Department will continue to vigorously protect the rights of all people to go about their daily lives free from discrimination at bars, restaurants and other public accommodations around the country.”
“A bar’s cover charge based on skin color is prohibited by law,” said U.S. Attorney Kenneth Magidson of the Southern District of Texas. “All places of public accommodation should treat their customers equally. If not, justice will be sought in our courts of law.”
Title II of the Civil Rights Act of 1964 prohibits discrimination on the basis of race, color, religion or national origin in places of public accommodation, such as restaurants, hotels, movie theaters, nightclubs, stadiums and other places of exhibition or entertainment. Under Title II, the Civil Rights Division can obtain injunctive relief that changes policies and practices to remedy customer discrimination. Title II does not authorize the division to obtain monetary damages for customers who are victims of discrimination.
More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Persons who believe they have experienced or witnessed unlawful discrimination in public accommodations may contact the Housing and Civil Enforcement Section at (202) 514-4713.
Escapee Gets Additional Time in Federal Prison for Tossing Urine at GuardsRead the Press Release
CORPUS CHRISTI, Texas – A Corpus Christi prisoner has been sentenced to prison for escaping from a halfway house and for assault on a federal employee, announced U.S. Attorney Kenneth Magidson. Desmond Deon Jones, 29, pleaded guilty June 13, 2016.
Jones had been completing a prison sentence at a federal halfway house for being a felon in possession of a firearm. He escaped from that halfway house on Dec. 15, 2015, and was captured on Jan. 4, 2016. He was charged and later pleaded guilty to the escape. While in custody awaiting sentencing in that case, Jones began to throw urine and other unknown liquids on jail guards working at the Costal Bend Detention Center. Between Jan. 28, 2016, and March 24, 2016, Jones threw urine or other unknown liquids on a total of 12 guards.
At the sentencing hearing today, Senior U.S. District Judge Hayden Head ordered Jones to serve 28 months in federal prison for both the assault conviction and for escaping from a halfway house. The escape and assault sentences will be served concurrently to each other but consecutively to his remaining term of confinement in the firearm case. The prison sentence will be immediately followed by three years of supervised release. At the sentencing hearing, additional evidence was presented including jail security video of one of the assaults.
Jones will remain in custody.
The FBI and the U.S. Marshals Service conducted the investigation. Assistant U.S. Attorney Robert D. Thorpe Jr. prosecuted the case.
Corpus Christi Man Convicted of Production of Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – A 31-year-old Corpus Christi man has pleaded guilty to production of child pornography, announced U.S. Attorney Kenneth Magidson.
In February 2016, authorities learned that Jesus Villalobos had been communicating via cellular telephone text messages and a social media application with an 11-year-old female. During those communications, Villalobos enticed the victim into sending him sexually explicit photographs of herself.
In April 2016, law enforcement executed a search warrant at the Villalobos residence and seized various electronic devices. A forensic analysis on those devices led to the discovery of several photographs of the child that were sexually explicit in nature.
Senior U.S. District Judge Hayden Head accepted the guilty plea today and set sentencing for Dec. 13, 2016. At that time, Villalobos faces a minimum of 15 and up to 30 years in federal prison and a possible $250,00 maximum fine. Upon completion of any prison term imposed, Villalobos 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.
Villalobos was arrested on federal charges in July 2016 and has been in custody since that time where he will remain pending his sentencing hearing.
The charges are the result of an investigation conducted by Immigration and Customs Enforcement’s Homeland Security Investigations with the assistance of the Corpus Christi Police Department—Internet Crimes Against Children Task Force.
This case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
“Babysitter” Gets 30 Years for Producing Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – A Mathis woman who was supposed to care for a young child but who instead recorded her sexual assault has been ordered to federal prison, announced U.S. Attorney Kenneth Magidson. Rosa Linda Ganceres, 54, entered a guilty plea June 8, 2016, to sexual exploitation of a child, otherwise known as production child pornography.
Today, U.S. District Judge Nelva Gonzales Ramos handed Ganceres the maximum terms of 360 months in federal prison to be immediately followed by 10 years of supervised release, 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. The court took into consideration a letter read in court by the mother of the victim, in which she described the impact the sexual abuse has had on the child. In handing down the sentence, Judge Ramos stated “The facts of this case are horrendous. What you did to those children is unimaginable.”
At the time of her plea, the court heard that Ganceres and her boyfriend and registered sex offender - Daniel Benson Billman, 43, of Aransas Pass, placed an ad on craigslist offering babysitting services. The victim’s mother answered the ad and Ganceres was supposed to care for the child. Instead, Billman sexually assaulted the two-year-old girl while Ganceres recorded the assault.
In August 2015, authorities executed a search warrant at Billman’s residence and seized a cellular telephone. Forensic examination led to the discovery of a video of the child involved in sexual explicit conduct that Ganceres recorded.
Billman has also pleaded guilty for his crimes. In March 2016, Senior U.S. District Judge Janis Graham Jack sentenced him to 50 years in federal prison.
Ganceres will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges are the result of the investigative efforts of Homeland Security Investigations, Aransas Pass Police Department and Corpus Christi Police Department’s Internet Crimes Against Children Task Force.
This case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Two Sentenced for Using Harris County Inmate Stolen Identities to Commit Tax FraudRead the Press Release
HOUSTON – Two men from Houston have been ordered to prison following their convictions of using personal identifying information stolen from Harris County inmates to submit false and fraudulent individual income tax returns to the IRS, announced U.S. Attorney Kenneth Magidson. Brandon Banks, 35, and Cal Williams, 30, admitted they used the names, dates of birth and Social Security numbers of unsuspecting Harris County inmates and others in Houston to submit false tax returns claiming refunds of several thousand dollars. Both pleaded guilty to the conspiracy April 25, 2016, while Banks also pleaded to one count of aggravated identity theft.
Today, U.S. District Judge Kenneth M. Hoyt handed Banks a sentence of 15 months for conspiracy to commit wire fraud as well as an additional 24 months for the aggravated identity theft, to be served consecutively. The total 39-month sentence will be immediately followed by three years of supervised release. Williams was ordered to serve a 24-month term of probation. In handing down the sentence, Judge Hoyt ordered Banks and Williams to pay restitution to the IRS in the amount of $69,827, and $3,742, respectively.
The men devised and executed the scheme beginning in approximately January 2012 and continuing until December 2013. Specifically, in February 2013, Banks provided Williams with lists containing the means of identification of individuals for the purpose of electronically filing false federal tax returns by interstate wire. Shortly thereafter, Williams provided the stolen personal identifying information to a person who was cooperating with law enforcement and instructed that individual to electronically submit a fraudulent claim for a tax refund.
The next month, at the direction of law enforcement agents, the person cooperating with law enforcement met with Williams and gave him approximately $1,942, his purported share of the false tax refund.
Banks and Williams were permitted to remain on bond. Banks will voluntarily surrender to a U.S. Bureau of Prisons facility on a date to be determined in the near future.
IRS-Criminal Investigation, U.S. Postal Inspection Service, Houston Police Department, Harris County Sheriff’s Department and U.S. Secret Service conducted the investigation. Assistant U.S. Attorney Vernon Lewis is prosecuting the case.
Corpus Christi Man Heads to Federal Prison After Kidnapping ChildRead the Press Release
CORPUS CHRISTI, Texas – A 21-year-old local man has been ordered to federal prison for kidnapping a six-year-old girl from her Corpus Christi home and planning to take her to Arizona, announced U.S. Attorney Kenneth Magidson. Austin Carlin, of Corpus Christi, pleaded guilty June 9, 2016.
Today, U.S. District Judge Nelva Gonzales Ramos handed Carlin a 262-month-term of imprisonment to be immediately followed by 10 years of supervised release. The court took into consideration a victim letter read in court by the mother of the girl Carlin kidnapped, in which she described the impact the crime has had on the child. Carlin will also be required to register as a sex offender.
Carlin abducted the young child from her residence in the early morning hours of Feb. 22, 2015. Carlin stole a vehicle and drove out of Corpus Christi with the child. The Corpus Christi Police Department (CCPD) immediately disseminated an Amber Alert in pursuit of Carlin and the child. As part of the alert, a Child Abduction Response Team was deployed with the assistance of FBI.
State troopers pulled Carlin over as he drove on Interstate 10 approximately 350 miles west of San Antonio. He was arrested and authorities were able to successfully recover the child and return her to her family. Carlin admitted that his destination was Arizona.
Carlin 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 charges are the result of the investigative efforts of the FBI, CCPD and the Texas Department of Public Safety. Assistant U.S. Attorney Hugo R. Martinez and Brittany Jensen are prosecuting the case.
Alien Smuggler who Crashed into Kingsville NAS Ordered to PrisonRead the Press Release
CORPUS CHRISTI, Texas – An alien smuggler has been sentenced for his involvement in a single vehicle accident that occurred in Kleberg County, announced U.S. Attorney Kenneth Magidson. Mario Rodriguez-Gomez, 25, a Mexican National who was illegally residing in Houston, pleaded guilty June 14, 2016, to conspiracy to transport illegal aliens causing serious bodily injury.
Today, U.S. District Judge Nelva Gonzalez Ramos ordered Rodriguez-Gomez to serve 46 months imprisonment. As a Mexican National, he is expected to face deportation proceedings following his release from prison.
The conviction stems from a May 14, 2016, single vehicle accident in Kleberg County that resulted in numerous injuries, including a passenger being ejected from the vehicle. All of the vehicle’s occupants were determined to be undocumented aliens from Mexico, Honduras, El Salvador and Guatemala.
On that date, Rodriguez-Gomez attempted to flee from law enforcement officers at a high rate of speed. His vehicle hit the activated security barrier gate at the entrance to Naval Air Station – Kingsville. After the collision, Rodriguez-Gomez attempted to abscond into the Naval Base. A total of 15 individuals were apprehended.
In federal custody since his arrest, Rodriguez-Gomez 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 Border Patrol and U.S. Navy Military Police.
Assistant U.S. Attorney Lance Watt prosecuted the case.
Three Charged with Trafficking CocaineRead the Press Release
McALLEN, Texas – Two men have been arrested and authorities are seeking a third for their alleged involvement in a cocaine trafficking conspiracy, announced U.S. Attorney Kenneth Magidson.
A federal grand jury returned a sealed three-count indictment Aug. 16, 2016, against Jesus A. Villarreal, 56, of Sullivan City, Juan Cristobal Hernandez, 37, of Reynosa, Tamaulipas, Mexico, and Rolando Martinez, Jr., 31, of Rio Grande City. The court unsealed the indictment in its entirety just moments ago.
Villarreal and Hernandez were taken into custody yesterday and they are expected to make an initial appearance before U.S. Magistrate Judge Dorina Ramos this morning.
Martinez is considered a fugitive and a warrant remains outstanding for his arrest. Anyone with information about his whereabouts is asked to contact the Drug Enforcement Administration (DEA) at 956-992-8400 or Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) at 866-347-2423.
The indictment alleges the three conspired to possess with the intent to distribute in excess of five kilograms of cocaine from March 1, 2015, to May 1, 2015. As part of the indictment, Hernandez and Villarreal allegedly possessed with intent to distribute 22 kilograms of cocaine in March 2015 and 108 kilograms in April 2015.
If convicted, each faces a minimum of 10 years and up to life in federal prison and a possible $10 million fine.
The arrests were the result of an investigation dubbed Operation Killing Time that began in 2015 and lead by DEA and HSI with assistance of the Texas Department of Public Safety and task force officers from police departments in San Juan, McAllen, Palmview, Weslaco, Mission and Pharr. Assistant United States Attorney Juan F. Alanis 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.
La Joya Housing Authority Indicted in Bid Rigging SchemeRead the Press Release
McALLEN, Texas ‐ The executive director of the La Joya Housing Authority has been indicted along with another individual for wire fraud, announced U.S. Attorney Kenneth Magidson.
Juan Jose Garza, 48, and Armando Jimenez, 52, were arrested Friday. This morning, the two men made their initial appearances before U.S. Magistrate Judge Dorina Ramos.
Garza is the executive director of the La Joya Housing Authority. The indictment alleges that from July 2012 through March 2013, Garza and Jimenez engaged in bid rigging for construction contracts with the Alamo and Donna Housing Authorities. Garza and Jimenez allegedly submitted false bids so that Jimenez Construction would be awarded construction projects. Jimenez then falsely submitted invoices for work he claimed his construction company did, but that had been completed by subcontractors working for Garza, according to the charges.
If convicted, each faces up to 20 years in prison and a possible $250,000 maximum fine.
The Housing and Urban Development - Office of Inspector General and the FBI conducted the investigation. Assistant U.S. Attorney Kristen Rees is prosecuting the case.
An indictment is merely an accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless and until convicted through due process of law.
Houston Man Arrested for Attempting to Transport and Use ExplosivesRead the Press Release
HOUSTON – A 50-year-old man residing in Houston has been arrested on charges that he attempted to transport explosives for the purpose of injury or destruction of property, announced U.S. Attorney Kenneth Magidson along with Special Agent in Charge Perrye K. Turner of the FBI.
Cary Lee Ogborn is charged with attempting to transport explosives with the intent that those explosives be used to kill, injure, or intimidate any individual or to damage or destroy a vehicle or building. He was arrested late Friday after picking up a package he believed contained such explosives. He is expected to make his initial appearance before U.S. Magistrate Judge Frances H. Stacy at 2:00 p.m. today.
The criminal complaint, filed upon his arrest, alleges he initiated an anonymous online order of explosive materials on a network of computers designed to conceal his true IP address. Ogborn allegedly went to an online marketplace that enables vendors and users to conduct anonymous transactions involving the sale of illegal goods.
Beginning on or around Aug. 20, 2016, Ogborn allegedly sent a private message via this network seeking items he intended to use to cause the explosion of a building. According to the complaint, Ogborn continued to communicate with someone he believed was a vendor, but whom was actually an undercover FBI employee.
Ogborn eventually placed an order for items he intended to use to destroy a vehicle and a building, according to the charges. After receiving notice that his package had arrived in his post office box, Ogborn allegedly retrieved the package and opened it.
He was arrested soon thereafter.
If convicted, he faces up to 10 years in prison and a fine of up to $250,000.
The FBI Joint Terrorism Task Force conducted the investigation with the assistance of the Montgomery County Sheriff’s Office, Houston High Intensity Drug Trafficking Area, Montgomery County Narcotics Enforcement Team and U.S. Postal Inspection Service.
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Two Doctors from Mexican Clinic Sentenced in Scheme to Commit Wire FraudRead the Press Release
McALLEN, Texas ‐ Two physicians from a family medicine clinic in Mexico have been ordered to prison for their role in a scheme to submit false and fraudulent insurance claims, announced U.S. Attorney Kenneth Magidson.
Dr. Mayolo Melchor, 59, and Dr. Bertha Hernandez-Melchor, 61, both of Reynosa, Tamaulipas, Mexico, pleaded guilty June 1, 2016, to conspiring with policyholders of the American Family Life Assurance Company (AFLAC) to fax fraudulent claim forms and accident reports to AFLAC for accidents and injuries that never occurred.
Today, U.S. District Judge Micaela Alvarez handed both Melchor and Herndandez-Melchor sentences of 34 months in federal prison. They were further ordered to pay $2,585,219.50 in restitution. In handing down the sentences, Judge Alvarez noted the large number of fraudulent claims submitted and the time period involved in the conspiracy. Both are expected to face deportation proceedings following release from federal prison.
The defendants admitted AFLAC policyholders paid them to prepare and sign fictitious reports for accidents and injuries that never occurred. AFLAC policyholders filled out the fictitious claim forms in the McAllen area and delivered them to the defendants’ family medicine clinic in Mexico where Melchor and Hernandez-Melchor prepared and signed corresponding accident reports for each fake accident and injury. The policyholders then faxed the fictitious claim and accident forms to AFLAC headquarters in Columbus, Georgia.
The defendants admitted the fraudulent claim forms and accident reports that were faxed to AFLAC from September 2001 to August 2010 resulted in the disbursement of approximately $2,585,219.50 in fraudulent benefit checks to the policyholders.
Both will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI investigated. Assistant U.S. Attorneys Michael Day and Tina Ansari are prosecuting the case.
Houston Man Heads to Prison for Credit Card FraudRead the Press Release
HOUSTON – A 29-year-old Houston resident has been ordered to federal prison following his convictions of conspiring to commit credit card fraud and aggravated identity theft, announced U.S. Attorney Kenneth Magidson. Darnell Wayne Menard pleaded guilty Jan. 21, 2016.
Today, U.S. District Judge Nancy Atlas sentenced Menard to 57 months for the conspiracy as well as a mandatory and consecutive 24 months for aggravated identity theft. The total 81-month-term will also be immediately followed by three years of supervised release. In handing down the sentence, Judge Atlas noted that Menard committed the offense while he was on bond after having been charged in state court with similar offense. The judge also said that this type of fraud imposes costs on everybody because merchants and credit card issuers pass the costs along to the public.
Menard admitted he purchased approximately 1,000 stolen credit card numbers over the Internet from websites outside the United States. He then created fraudulent credit cards by encoding stolen credit card numbers onto magnetic stripes on the back of gift and debit cards. He then used those fraudulent cards to purchase legitimate gift cards from Kroger and HEB grocery stores in Conroe and others during 2014 and 2015.
Menard was first arrested for credit card fraud and charged in state court. However, upon his release on bond, Menard continued to engage in the same activity.
He was arrested again on federal charges in June 2015, at which time authorities found an electronic encoder device that Menard had been using to encode stolen credit card numbers onto cards. They also found and seized a computer containing files listing numerous additional stolen credit card numbers, seven gift cards that Menard had encoded with stolen credit and debit card numbers.
Menard will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Secret Service and the Texas Department of Public Safety investigated. Assistant U.S. Attorney John R. Lewis is prosecuting the case.
Final Defendant Sentenced in Aggravated Identity Theft and Wire Fraud SchemeRead the Press Release
HOUSTON – A Houston woman has been ordered to federal prison following her conviction of wire fraud and aggravated identity theft, announced U.S. Attorney Kenneth Magidson. Alicia Myles, 32, pleaded guilty Oct. 9, 2015.
Today, U.S. District Judge David Hittner ordered Myles to serve a total of 42 months – 18 months for the wire fraud and a consecutive 24 months for the identity theft. She was also ordered to serve three years of supervised release following her sentence and must pay restitution in the amount of $$77,064.86.
Myles, along with Chloe McClendon and Domonique Thomas, were able to engage in this scheme through the theft of personal identifying information (PII) of individuals from the Department of State Passport Agency where McClendon had worked. They used the stolen and unlawfully obtained PII of true persons to create counterfeit identification documents. The defendants then recruited other individuals to assume the stolen identities and use the counterfeit documents to obtain commercial lines of credit and purchase iPhones, iPads and other electronics merchandise.
McClendon and Thomas were previously sentenced to 65 and 96 months in federal prison, respectively.
Previously released on bond, Myles was ordered into custody following the hearing today.
The investigation leading up to the arrest was conducted by the Department of State, Diplomatic Security Service, Houston Field Office and Criminal Fraud Investigations Division and the Houston Police Department. Assistant U.S. Attorneys Ted Imperato and Alamdar Hamdani are prosecuting this case.
Accountant Convicted of Embezzling More than $3 Million from Houston CompanyRead the Press Release
HOUSTON – An accountant from Georgia has admitted he committed wire fraud and stole more than $3 million from Houston company Airis International Holdings, announced U.S. Attorney Kenneth Magidson.
Daniel Nathan West, 50, of Duluth, Georgia, was previously employed as the treasurer and chief financial officer for Airis International Holdings. In this role, he was to manage Airis finances during construction projects, control the company’s monetary assets, administer payments and payroll, among other things.
In 2005, West resigned from Airis to start his accounting firm - Westtree Financial. Shortly thereafter, Airis contracted with Westtree Financial to provide accounting services to Airis. Although West no longer worked directly for Airis, through his company he continued to have signature authority on Airis’ bank accounts and authority to transfer funds on behalf of Airis.
From 2005 to 2012, West embezzled $3,616,563.45 from Airis, admitting he used the monies to purchase a luxury home in Georgia, a beach house in Florida, an office building in Georgia and luxury vehicles.
U.S. District Judge Kenneth Hoyt accepted the plea and set sentencing for Dec. 5, 2016. At that time, he faces up to 20 years in prison. He was permitted to remain on bond pending that hearing.
The FBI conducted the investigation. Assistant U.S. Attorney Vernon Lewis is prosecuting the case.
Texas Syndicate Gang Member Ordered to Federal PrisonRead the Press Release
BROWNSVILLE, Texas – A member of the Texas-based prison and street gang known as the Texas Syndicate has been ordered to federal prison for narcotics trafficking, announced U.S. Attorney Kenneth Magidson. Juan Matias Trevino, 29, of Brownsville, pleaded guilty Feb. 2, 2016, to possession with intent to distribute one kilogram of methamphetamine.
Today, U.S. District Judge Rolando Olvera handed Trevino a 262-month prison sentence to be immediately followed by five years of supervised release. As part of the sentence, Judge Olvera found Trevino was a career-offender and a leader-organizer in the drug trafficking scheme.
Trevino was arrested Oct. 25, 2015, after organizing the shipment of one kilogram of methamphetamine from a Brownsville bus station to the Philadelphia, Pennsylvania, metropolitan area. The narcotics were to be distributed thereafter in the northeast. Law enforcement had been conducting surveillance on Trevino for weeks and observed activities consistent with narcotics trafficking. He was arrested and the narcotics were seized prior to departure from Brownsville.
Trevino will remain in custody.
The Drug Enforcement Administration and the Cameron County Sheriff’s Department Special Investigations Unit conducted the joint investigation. Assistant U.S. Attorney Jason Corley prosecuted the case.
Houston Man Convicted of Sex TraffickingRead the Press Release
HOUSTON – A 28-year-old Houston man has entered a plea of guilty to two counts of sex trafficking by the use of force, fraud and coercion, announced U.S. Attorney Kenneth Magidson.
Roger Maldonado came to the attention of law enforcement after law enforcement found a female at a hospital whom Maldonado had physically assaulted in August 2015. The victim had suffered a forehead laceration, upper and lower eyelid contusions, neck abrasions, a finger contusion and abdominal trauma. At that time, the female advised law enforcement that Maldonado was her boyfriend and that he had assaulted her.
In September 2015, law enforcement found a second female whom Maldonado had also assaulted. The investigation revealed that Maldonado had been trafficking these two victims on Backpage.com as well as at Pink Spa - a sexually-oriented business located in Houston known by law enforcement for prostitution activities.
Through their investigation, law enforcement discovered Maldonado had been taking photographs of these victims and posting advertisements in order to solicit business for these victims. Maldonado would set up the dates for the victims and transport the women in order for them to engage in commercial sex acts. The victims would then turn a portion of the money over to the defendant. Ultimately, Maldonado used force, threats of force, fraud and coercion to have these victims perform commercial sex acts from which he benefited financially.
Maldonado pleaded guilty today before U.S. District Judge Nancy F. Atlas who set sentencing for Nov. 29, 2016. At that time, Maldonado faces a minimum of 15 years and up to life in federal prison.
The FBI and Houston Police Department investigated.
This case, prosecuted by Assistant U.S. Attorneys Kimberly Ann Leo and Sherri 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."
Former Fugitive Handed Three Life Sentences for Kidnapping and Alien Smuggling, Both Resulting in DeathRead the Press Release
VICTORIA, Texas – A former fugitive who was illegally residing in Houston has been sentenced to life in prison after pleading guilty to engaging in an alien smuggling conspiracy that resulted in two deaths and kidnapping two women, one of whom was killed. One of the life sentences was ordered to run consecutively to the other two life terms imposed.
U.S. Attorney Kenneth Magidson of the Southern District of Texas and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division made the announcement
Noe Aranda-Soto, aka Diablo, 36, of San Carlos, Michoacan, Mexico, pleaded guilty May 31, 2016, to kidnapping resulting in death, use of a firearm during and in relation to a crime of violence resulting in death and conspiracy to transport aliens for private financial gain resulting in death.
Today, U.S. District Judge John D. Rainey ordered that Aranda-Soto spend the rest of his life in federal prison. More than 20 victims and family members of victims traveled from Mexico and from various places all over the U.S. to attend the sentencing hearing, one of whom was the 18-year-old son of one of a deceased female victim who described the impact of the crime on their family. The woman's father also addressed Aranda-Soto and said, "I pray God forgives you, because we never will."
Fourteen victims addressed the court, most of whom have sustained some type of permanent injuries as a result of the defendant’s criminal conduct. Additionally, family members of two of the three victims who were killed as a result of the offenses also gave emotional testimony describing the impact of the loss of their family member on their family.
Another victim, who was shot three times but survived after jumping out of moving vehicle, was the only eyewitness to one of the brutal crimes and provided powerful testimony. She testified that she and the other woman were making plans to attempt to escape from the defendant the day he forced them into a car at gunpoint. She told the court that the woman's last words were "tell my children I love them with all of my heart.”
After all the victims spoke, Judge Rainey asked the defendant if he wished to make a statement. Aranda-Soto did not apologize nor make any comments to the court or the victims.
In his plea agreement, Aranda-Soto admitted that from 2010 until his arrest in 2012, he led an alien-smuggling and hostage-taking organization that transported aliens from areas near the south-Texas checkpoints to local stash houses in Houston and to points north. On Aug. 1, 2010, his brother was driving a vehicle loaded with illegal aliens when it rolled over near Victoria. One victim died as a result of the accident, while another had been left behind in the brush and died of exposure and dehydration. A third victim was in a coma for nearly a year and now suffers from permanent injuries, according to the plea.
Law enforcement stopped Aranda-Soto a few days later, but he fled. Aranda-Soto admitted he returned to Houston in 2012 and began to hold aliens hostage in Houston-area stash houses. According to admissions made in connection with the plea, Aranda-Soto planned to escape from Houston with two female employees after law enforcement rescued a group of aliens being held hostage and arrested several of Aranda-Soto’s employees in October 2012.
According to the plea agreement, while on Interstate 10 near Katy, Aranda-Soto became agitated and shot both the driver and the other female passenger multiple times. The injured driver jumped from the moving car and survived. Aranda-Soto then purposefully drove the car erratically, causing the other woman to be ejected from the moving vehicle onto the highway where she was subsequently run over by multiple other vehicles and killed, according to admissions in the plea agreement.
Law enforcement arrested Aranda-Soto a week later at yet another stash house, which was full of illegal aliens whom Aranda-Soto and his co-conspirators were holding hostage.
With Aranda-Soto’s plea, all of those charged in relation to the 2010 and 2012 criminal activity have now been convicted.
The U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, U.S. Border Patrol agents with the South Texas Campaign and South Texas Border Intelligence Center, Houston Police Department, Harris County Sheriff’s Office and the U.S. Marshals Service investigated the case. Assistant U.S. Attorneys Patti Hubert Booth and Casey N. MacDonald are prosecuting the case along with Trial Attorney Jeffrey Zick of the Criminal Division’s Capital Case Section.
Former Fugitive Handed Three Life Sentences for Kidnapping and Alien Smuggling, Both Resulting in DeathRead the Press Release
A former fugitive who was illegally residing in Houston has been sentenced to three terms of life in prison after pleading guilty to engaging in an alien smuggling conspiracy that resulted in two deaths and kidnapping two women, one of whom was killed. One of the life sentences was ordered to run consecutively to the other two life terms imposed.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas made the announcement.
Noe Aranda-Soto, aka Diablo, 36, of San Carlos, Michoacan, Mexico, pleaded guilty on May 31, 2016, to kidnapping resulting in death, use of a firearm during and in relation to a crime of violence resulting in death and conspiracy to transport aliens for private financial gain resulting in death.
Today, U.S. District Judge John D. Rainey of the Southern District of Texas ordered that Aranda-Soto spend the rest of his life in federal prison. More than 20 victims and family members of victims traveled from Mexico and from various places all over the United States to attend the sentencing hearing, one of whom was the 18-year-old son of one of the deceased female victims, who described the impact of the crime on their family. The woman’s father also addressed Aranda-Soto and said, “I pray God forgives you, because we never will.”
Fourteen victims addressed the court, most of whom have sustained some type of permanent injuries as a result of the defendant’s criminal conduct. Additionally, family members of two of the three victims who were killed as a result of the offenses gave emotional testimony describing the impact of the loss on their family.
Another victim, who was shot three times but survived after jumping out of a moving vehicle, was the only eyewitness to one of the brutal crimes and provided powerful testimony. She testified that she and the other woman were making plans to attempt to escape from the defendant the day he forced them into a car at gunpoint, and told the court that the woman’s last words were “tell my children I love them with all of my heart.”
After all of the victims spoke, Judge Rainey asked the defendant if he wished to make a statement. Aranda-Soto did not apologize nor make any comments to the court or the victims.
In his plea agreement, Aranda-Soto admitted that from 2010 until his arrest in 2012, he led an alien-smuggling and hostage-taking organization that transported aliens from areas near the south-Texas checkpoints to local stash houses in Houston and to points north. On Aug. 1, 2010, his brother was driving a vehicle loaded with illegal aliens when it rolled over near Victoria, Texas. One victim died as a result of the accident, while another had been left behind in the brush and died of exposure and dehydration. A third victim was in a coma for nearly a year and now suffers from permanent injuries, according to the plea.
Law enforcement stopped Aranda-Soto a few days later, but he fled. Aranda-Soto admitted that he returned to Houston in 2012 and began to hold aliens hostage in Houston-area stash houses. According to admissions made in connection with the plea, Aranda-Soto planned to escape from Houston with two female employees after law enforcement rescued a group of aliens being held hostage and arrested several of Aranda-Soto’s employees in October 2012.
According to the plea agreement, while fleeing by car on Interstate 10 near Katy, Texas, Aranda-Soto became agitated and shot both the driver and the other female passenger multiple times. The injured driver jumped from the moving car and survived. Aranda-Soto then purposefully drove the car erratically, causing the other woman to be ejected from the moving vehicle onto the highway where she was subsequently run over by multiple other vehicles and killed, according to admissions in the plea agreement.
Law enforcement arrested Aranda-Soto a week later at yet another stash house, which was full of illegal aliens whom Aranda-Soto and his co-conspirators were holding hostage.
With Aranda-Soto’s plea, all of those charged in relation to the 2010 and 2012 criminal activity have now been convicted.
The U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, U.S. Border Patrol agents with the South Texas Campaign and South Texas Border Intelligence Center, Houston Police Department, Harris County Sheriff’s Office and the U.S. Marshals Service investigated the case. Assistant U.S. Attorneys Patti Hubert Booth and Casey N. MacDonald are prosecuting the case along with Trial Attorney Jeffrey Zick of the Criminal Division’s Capital Case Section.
Medical Equipment Company Owner and Biller Plead Guilty in Health Care Fraud SchemeRead the Press Release
McALLEN, Texas ‐ The owner of a Rio Grande Valley area durable medical equipment (DME) company has been convicted of conspiracy to commit health care fraud, announced U.S. Attorney Kenneth Magidson. Veronica Vela, 42, of Mission, entered her plea today before U.S. District Judge Micaela Alvarez.
Vela, the owner of ABC DME, admitted to engaging in a scheme with her co-conspirator and biller, Cynthia Zapata, 50, also of Mission, to submit fraudulent claims to Texas Medicaid for incontinence supplies that were not provided as claimed. The defendants also billed for durable equipment that the recipients’ physicians did not authorize.
Zapata pleaded guilty to conspiracy to commit health care fraud for her role in the scheme. As part of their pleas, the defendants admitted they billed for the maximum quantity of pull-ups allowed under Texas Medicaid rules when it was not needed or provided. Further, they also billed for larger sizes of pull-ups than were needed in order to receive higher reimbursements from Texas Medicaid.
Judge Alvarez has set sentencing for Nov. 17, 2016, at 2:00 p.m., at which time both face up to 10 years in federal prison and a possible $250,000 fine for the conspiracy.
The Texas Attorney General’s Medicaid Fraud Control Unit, U.S. Department of Health and Human Services‐Office of Inspector General and the FBI investigated. Assistant U.S. Attorneys Michael Day and Linda Requenez are prosecuting the case.
Former Professor Sentenced on Two Child Pornography ChargesRead the Press Release
GALVESTON, Texas - A 47-year-old Galveston man formerly employed at Texas A&M University has been ordered to federal prison following his convictions of receipt and possession of child pornography, announced U.S. Attorney Kenneth Magidson. Matthew Irwin pleaded guilty March 22, 2016.
Today, U.S. District Judge George C. Hanks Jr. took into consideration all materials presented including victim impact statements and handed Irwin and 97 months in federal prison. In handing down the sentence, Judge Hanks stated that he needed to protect the members of society who could not protect themselves. Irwin will serve 10 years of supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. Irwin will also be ordered to register as a sex offender.
Irwin was employed as an associate professor for Texas A&M Galveston at the time of his arrest. He had come to the attention of law enforcement after investigators found evidence he was accessing files from a website known to contain child pornography.
Law enforcement executed a search warrant at his residence on Aug. 6, 2015, at which time they seized a laptop and various external storage media devices. The forensic examination revealed more than 4,000 images and two videos of clearly young children engaged in sexually explicit conduct. These movies and images included children under the age of 12 engaged in acts of violence. Some of the images are of known victims as identified through the National Center for Missing and Exploited Children.Irwin admitted he downloaded child pornography from the Internet, thereby receiving and possessing the child pornography found on his computer and external storage media.
Previously released on bond, Irwin 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 charges are the result of an investigation by the FBI and the Pearland Police Department.
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."
Anderson Man Sentenced for Smuggling Orangutan SkullsRead the Press Release
VICTORIA, Texas – A professional reptile breeder has entered a guilty plea to smuggling two orangutan skulls into the country from Indonesia, announced U.S. Attorney Kenneth Magidson along with Southwest Region Special Agent in Charge Nicholas E. Chavez of the U.S. Fish and Wildlife Service (FWS).
Graham Scott Criglow, 39, pleaded guilty before Senior U.S. District Judge John D. Rainey today. Criglow was ordered to pay a $2,500 fine and must serve three years of probation.
“One of our highest priorities is to combat wildlife trafficking here in the United States and abroad as we are on the front lines protecting those animals listed under the Convention on International Trade in Endangered Species,” said Chavez. “The successful outcome of this investigation is also the result of working with the U.S. Attorney's Office, where these individuals and companies are held responsible for their actions. I hope this sentence sends a strong message to those that are involved in smuggling wildlife that the crime is not worth the outcome.”
Criglow was charged by a criminal information with one count of smuggling two orangutan (Pongo species) skulls into the U.S. Orangutans are protected under the Endangered Species Act (ESA). The ESA prohibits any person subject to the jurisdiction of the U.S. to engage in the trade of any wildlife contrary to the provisions of the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES).
During the plea today, the court learned that Criglow was the owner of Strange Cargo Exotics, which was an Internet-based wildlife related business he operated from his Anderson residence. Criglow’s business was engaged in the breeding, sale and trade of reptiles, including venomous snakes.
In April 2016, FWS inspectors at the San Francisco International Airport examined a parcel from Indonesia addressed to Criglow. The parcel lacked an Indonesian customs declaration and was screened using an x-ray machine. The inspectors determined the parcel contained two primate skulls. A morphology examination determined the wildlife was two orangutan skulls.
In May 2016, agents conducted a controlled delivery of the skulls at Criglow’s residence and executed a search warrant, at which time agents located several other animal skulls and bones. Authorities also located human remains including approximately 30 human skulls which were found to be legally purchased by Criglow for his personal collection.
The charges were the result of an investigation conducted by FWS with the assistance of the U.S. Postal Inspection Service and the Texas Parks and Wildlife Department. Assistant U.S. Attorney Hugo R. Martinez is prosecuting the case.
Houston Man Sentenced for Crosby Bank RobberyRead the Press Release
HOUSTON – A 32-year-old Houston man has been ordered to federal prison following his convictions for aggravated bank robbery and brandishing a firearm during a crime of violence, announced U.S. Attorney Kenneth Magidson. Dominic Renard Lindsey pleaded guilty March 23, 2016.
Today, U.S. District Court Judge David Hittner sentenced Lindsey to 51 months for the aggravated bank robbery which will be served consecutively to another seven years for the firearms charge. The total 135-month-term will be immediately followed by five years of supervised release.
Lindsey robbed the BBVA Compass Bank at 6011 FM 2100 Road in Crosby on May 18, 2016. He was armed and demanded money from the teller. He also pointed the weapon at customers and employees, forcing them to the ground. As he fled the bank, a witness followed him and saw him place two black duffle bags inside the jeep he was driving. After confronting him, the witness then saw him remove the bags and go into a foliage-laden area nearby.
Lindsey was driving a CenterPoint Energy (CPE) vehicle and told authorities he had a work order and was in the area checking a gas line. He was confirmed as a contractor for CPE, but the supervisor stated he did not have a work order for that area and that there was no gas line there nor any reason Lindsey should be there.
The clothing worn during the robbery and stolen money was found not far from Lindsey’s vehicle in the foliage where Lindsay was seen.
Authorities also discovered an unloaded .357 revolver, similar in color and style to the gun used during the bank robbery.
Lindsey 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 investigation was conducted by the FBI Bank Robbery Task Force, which is comprised of personnel from the FBI, Houston Police Department and Harris County Sheriff's Office. Assistant U.S. Attorney Jennie Basile is prosecuting the case.
Local Teacher Charged after Attempting to Engage in Sexual Conduct with a MinorRead the Press Release
HOUSTON – A 30-year-old teacher has been arrested on multiple charges surrounding his travel across state lines to engage in sexaul activity with a minor male, announced U.S. Attorney Kenneth Magidson. Drew Dillon Watson is a Physics teacher at a local school serving approximately 1,000 students in grades 6-12.
Watson, of Houston, was taken into custody yesterday upon the filing of a criminal complaint. He is expected to make his initial appearance before U.S. Magistrate Judge Stephen Wm. Smith at 2:00 p.m., at which time the government intends to request his detention pending further criminal proceedings.
The criminal complaint alleges Watson had been communicating with a 15-year-old male via text messaging, telephone calls, Skype and social media such as Kik and Snapchat beginning on or about April 16, 2016. During those conversations, Watson allegedly engaged in extremely explicit sexual conversations which eventually led to plans for Watson to travel to Illinois to meet with the boy. According to the criminal complaint, the minor male believed Watson’s intentions to be sexual in nature and that they had discussed engaging in various sex acts once they were alone.
The complaint further indicates that Watson was aware the male was under the age of 18. During those online communications, which allegedly occurred every day, Watson had stated he was approximately 30 years old and had formerly been employed as a physics teacher at a Texas area high school. The male informed Watson that he was a 16-year old high school student. As the communications progressed, Watson also allegedly sent the minor full body nude images of himself.
The criminal complaint charges that on May 13, 2016, Watson flew from Houston to Chicago with plans to meet with the boy for the purpose of engaging in illicit conduct. The victim’s mother had dropped her son off at a friend’s residence, thinking he was spending the weekend there. According to the charges, she was about to leave, when she felt something amiss and circled back around to the home. There, she witnessed her son entering a vehicle driven by an approximately 30-year-old male, according to the complaint. She confronted him, at which time her son exited the vehicle and they alerted authorities.
Watson is charged with coercion and enticement as well as transportation with intent to engage in criminal sexual activity. Both counts carry a minimum of 10 years and up to life in federal prison. He is also charged with travel with intent to engage in illicit sexual conduct which carries another 30-year-maximum term.
The FBI Violent Crime Task Force investigated the case with assistance from FBI in Chicago and the Lansing, Illinois, Police Department.
This case, being prosecuted by Assistant U.S. Attorney Sherri 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."
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Local Tax Preparer Charged with Using Aliases to Continue False Tax Return Preparation after Pleading GuiltyRead the Press Release
HOUSTON – A local tax return preparer has been arrested on new charges of illegally preparing 39 false tax returns, announced U.S. Attorney Kenneth Magidson along with D. Richard Goss, special agent in charge of Internal Revenue Service-Criminal Investigation (IRS-CI).
Cedric Keith Oliphant was sentenced to 33 months after pleading guilty in 2013 to filing a false tax return. He was released from prison Aug. 26, 2016, and arrested on the new charges today.
The 40-count indictment was returned under seal Aug. 29, 2016, and unsealed upon his arrest this morning. He is expected to make his initial appearance before U.S. Magistrate Judge Stephen W. Smith at 2:00 p.m. today.
Oliphant had been previously charged and later convicted of preparing dozens of false 2006-08 client tax returns as part of his business - Oliphant Tax Services. He had been permitted to remain on bond during that time under a condition that he have no involvement in the preparation of tax returns other than his own. However, according to the new indictment, Oliphant continued to claim the same false deductions for unsuspecting clients while awaiting sentencing on the previous case.
As part of the scheme, the indictment alleges he changed the name of business to “Tax Services” to allegedly make it appear he had stopped preparing client tax returns and that someone else was the owner of his tax preparation business. Oliphant allegedly attributed the fees to the nominal owner of his tax office but manipulated those tax returns to make it appear the tax office had produced almost no taxable income.
The indictment also alleges Oliphant established a series of bank accounts in the names of others - including minors with custodians other than himself - so the fees could first be deposited to accounts in the names of the nominal owner of his tax office and others. He then allegedly transferred those fees through these intermediate accounts to accounts in his own name. This scheme enabled Oliphant to conceal his personal use of the fees generated by the business during the course of the prosecution on the first case, according to the charges.
The business allegedly generated $2 million in fees and a total loss to the IRS of another $400,000 or more as charged in the new indictment. As part of the his plea agreement in the earlier case, the losses from those false tax returns exceeded $325,000.
If convicted, he faces another three years in federal prison and a possible $250,000 fine on each count of conviction.
IRS-CI conducted the investigation. Assistant U.S. Attorney Jimmy Sledge Jr. is prosecuting the cases.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
La Joya Man Convicted of Pointing Laser at CBP HelicopterRead the Press Release
McALLEN, Texas – A 57-year old La Joya man has entered a guilty plea to pointing a laser at a Customs and Border Protection (CBP) helicopter, announced U.S. Attorney Kenneth Magidson.
Juan Peralez was arrested June 20, 2016. On that date, CBP agents in a helicopter were assisting Border Patrol (BP) agents in an area south of La Joya when they noticed the light of a green laser in the cabin. The pilot took evasive action and turned away in order to avoid being blinded by the laser.
Another member of the flight crew then guided agents on the ground to the source of the laser where a BP agent encountered Peralez, aiming the laser at the helicopter.
According to agents with CBP Air and Marine, lasers are particularly hazardous when directed at aircraft. At a minimum, they create distractions for crews who routinely operate in the vicinity of power lines and towers. Lasers can also create temporary or permanent blindness. Further, since lasers can also be attached to weaponry, pilots will often take immediate evasive action which can also put them in harm’s way.
U.S. District Judge Randy Crane accepted the plea today and has set sentencing for Nov. 17, 2016. Peralez was permitted to remain on bond pending that hearing, at which time he faces up to five years imprisonment and a possible $250,000 maximum fine.
The arrest is the result of a joint investigation between Homeland Security Investigations and the FBI with the assistance of Texas Department of Public Safety and Border Patrol. Assistant U.S. Attorney Joseph Leonard is prosecuting the case.
Houston Woman Found Guilty on Charges of Sex Trafficking of MinorsRead the Press Release
HOUSTON – A jury sitting in Houston has returned guilty verdicts against a Houston woman for conspiracy to commit sex trafficking of minors and sex trafficking of minors, announced U.S. Attorney Kenneth Magidson. The jury convicted Jazsmine Arielle Joseph, 27 , this morning following a week-long trial and approximately six hours of deliberation.
Co-defendant Xavier Cooper, 31, previously pleaded guilty.
The jury found Joseph engaged in a conspiracy with Cooper between October 2014 through March 2015, in which they engaged in conspiracy to entice, transport and harbor a minor female to engage in commercial sex. Joseph paid for and directed the posting of prostitution ads online. Joseph also rented hotel rooms where the minor engaged in commercial sex acts.
The jury heard that the the minor engaged in numerous commercial sex acts over the course of the conspiracy culminating with her recovery during a highly publicized sting operation on March 31, 2015. At trial, Joseph claimed she was “just helping a friend” in regard to her renting the hotel room and assisting with the posting of the prostitution ads. The jury also heard about and viewed text messages between Joseph and Cooper discussing the minor victim. The texts discussed making sure the victim was ready to receive customers and when customers were on their way.
Joseph attempted to convey her innocence by testifying she was trying to help the victim and protect her from Cooper. The jury was not convinced and found her guilty on both counts.
U.S. District Judge David Hittner presided over the trial and set sentencing for Nov. 28, 2016. At that time, Joseph faces up to life in prison. Previously released on bond, she was ordered into custody following the return of the verdicts today.
The Texas Department of Public Safety investigated with the assistance of the FBI. Assistant U.S. Attorneys Kimberly A. Leo and Sherri L. Zack prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Two Trials End in Guilty VerdictsRead the Press Release
LAREDO, Texas – Two men have been convicted of transporting illegal aliens in two separate, unrelated cases and trials, announced U.S. Attorney Kenneth Magidson. Both verdicts were returned following one-day trials and less than an hour of deliberation.
A federal jury convicted Armando Catalino Escobar-Martinez, 19, of Guatemala, today, while another jury convicted Edgar Mariano Hernandez-Caal, 21, of Nuevo Laredo, Mexico, yesterday. Both men were found guilty of transporting illegal aliens.
According to testimony in the first case, in June 2016 Escobar-Martinez served as a guide leading other undocumented aliens across the Rio Grande River towards Laredo. Witnesses described Escobar-Martinez acting as a guide and leading the group of eight aliens, one of whom was his sister.
The defense argued that Escobar-Martinez would not have been a guide since his sister was part of the group and that they were trying to come into the U.S. together. The defense also attempted to convince the jury that he did not fit the description of a typical guide, simply because he was from Guatemala, not Mexico.
The jury did not believe those claims and found Escobar-Martinez guilty as charged.
In the other separate yet strikingly similar matter, Hernandez-Caal assisted other persons in transporting a different group of undocumented aliens across the Rio Grande River towards Laredo. The jury heard from witnesses who described Hernandez-Caal acting as a guide and leading the group of eight aliens into Texas in July 2016. Border Patrol agents ultimately discovered the eight undocumented aliens who were subsequently detained.
Hernandez-Caal testified at trial and admitted to illegally entering the U.S. However, he denied acting as a guide or having any involvement in the transportation of undocumented aliens into the through the U.S.
The jury was not convinced and found him guilty as charged.
U.S. District Judge Marina Garcia Marmolejo presided over both cases and will set sentencing hearings at a later date. At those times, each defendant will face up to 10 years in federal prison. They will remain in custody pending their hearings.
Border Patrol conducted both investigations. Assistant U.S. Attorneys Sarah Ellison and Christopher dos Santos are prosecuting the cases.
Tomball Area Drug Traffickers Indicted for Distributing MethRead the Press Release
HOUSTON – A total of five Houston area drug traffickers are in custody on allegations they were involved in the large-scale distribution of methamphetamine in the Tomball and Pinehurst areas, announced U.S. Attorney Kenneth Magidson.
A federal grand jury returned a sealed indictment Aug. 18, 2016, against Tomball resident German Rodriguez, 24; Mexican national Bernabe Lopez-Olmos, 28, residing in Tomball; Carlos Garcia-Luna, 51, and Julia Cerna-Compean, 50, both legal permanent residents from Mexico residing in Magnolia; and Cristobal Martinez-Chavez, 43, a Mexican national residing in Houston.
The indictment was unsealed as to each defendant upon their arrest. Garcia-Luna and Cerna-Compean were taken into custody today and are expected to make their initial appearances before U.S. Magistrate Judge Stephen Wm. Smith tomorrow at 2:00 p.m. Authorities arrested Rodriguez and Martinez-Chavez yesterday. They appeared in court today, at which time they were ordered into custody pending a detention hearing Sept. 7, 2016, before U.S. Magistrate Judge Nancy Johnson. Lopez-Olmos was already in custody on related charges.
All are charged with conspiracy to possess with intent to distribute methamphetamine as well as with possession with intent to distribute methamphetamine. The indictment alleges that between October 2014 and December 2015 the defendants distributed more than seven kilograms of actual methamphetamine.
If convicted, each faces a mandatory minimum of 10 years and up to life in federal prison and a possible $10 million fine.
The Drug Enforcement Administration – High Intensity Drug Trafficking Area drug squad conducted the investigation along with the Texas Department of Public Safety – Methamphetamine Initiative Group, police departments in Tomball and Houston and the Montgomery County Pct. 5 Constable’s Office.
Assistant U.S. Attorney Anibal J. Alaniz is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless and until convicted through due process of law.
RGV Area Doctor Charged in Health Care Fraud and Illegal Kickback SchemeRead the Press Release
McALLEN, Texas ‐ A Rio Grande Valley area doctor has been charged in a federal indictment for his scheme to defraud Medicare and to solicit and obtain illegal kickbacks in exchange for patient referrals, announced U.S. Attorney Kenneth Magidson.
A federal grand jury in McAllen returned the indictment under seal Aug. 30, 2016. It was unsealed today upon the arrest of Dr. Pedro Garcia, 68, of Mission. He is expected to make his initial appearance before U.S. Magistrate Judge Peter Ormsby tomorrow at 10:30 a.m.
According to the charges, Garcia solicited and obtained cash in exchange for referrals of Medicare beneficiaries to prospective home health agencies. Garcia allegedly signed patient forms for patients he did not treat or provide services to and conveyed the forms to home health agencies, claiming he had treated or provided services to the patients. Some of the patients were deceased on the dates Garcia claims to have provided treatment or services, according to the indictment.
The indictment also alleges that from 2014 to 2016, Garcia submitted or caused others to submit claims to Medicare for reimbursement of home health services that were not provided. Garcia allegedly filed or caused others to file claims with Medicare knowing that the claims were false since the services were not provided. According to the indictment, Garcia illegally used the beneficiaries identifying information to perpetrate the fraud.
Garcia is charged with one count of conspiracy to commit health care fraud, four counts of health care fraud, four counts of aggravated identity theft, three counts of illegal remunerations and one count of obstruction of criminal investigations of health care offenses.
Conspiracy to commit health care fraud and each of the four counts of health care fraud carry a maximum punishment of 10 years in federal prison and a $250,000 fine, upon conviction. Illegal remunerations and obstruction of criminal investigations of health care offenses carry a maximum punishment of five years in federal prison and a $25,000 fine. For the aggravated identity theft, Garcia also faces a mandatory two‐year additional prison term which must be served consecutively to any other prison sentence imposed.
The FBI, 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 Michael Day and Andrew Swartz are prosecuting the case.
An indictment is an accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Numerous Texas “Mexikan” Mafia Members Arrested in Coastal Bend Round-upRead the Press Release
CORPUS CHRISTI, Texas – A total of 19 people are charged in a six-count indictment, some of whom are alleged members of the Texas “Mexikan” Mafia (TMM) and charged with conspiring to violate the Racketeer Influence Corrupt Organization (RICO) statute, announced U.S. Attorney Kenneth Magidson.
A federal grand jury in Corpus Christi returned the indictment Aug. 24, 2016. It was unsealed as each defendant was taken into custody. Those arrested today include Corpus Christi residents Rogelio Ramirez, 33, Pedro Gonzales, 41, Jose Mireles, 33, and Gilberto Garcia, 36; Jose Jesus Toledo, 41, and Abelardo Pena, 48, both of Victoria; Sinton residents Roman Jose Zapata II, 33, and Doroteo Gonzales III, 36; Gregory resident Juan Felipe Bazan, 45; Ruben Saenz, 37, Eusebio Castillo, 36, and Bruce Lee Cisneros, 40, of Port Lavaca, Taft and Robstown, respectively; Ingelside resident April Diane Petruska, 34; and Syliva Rodriguez Walton, 53, and Daisy Cruz Ortiz, 27, both of Aransas Pass. Brownsville resident Jorge Luis Gracia, 36, was also taken into custody today in Beaumont. David Joe Maseda Jr., 37, of Houston was arrested yesterday. David Gonzales, 35, of Aransas Pass, was already in custody on unrelated charges.
Authorities also conducted searches at a variety of these locations, including Bazan’s Gregory residence among others.
With the exception of Maseda and Gracia, who are expected to make initial appearances this afternoon in Houston and Beaumont, respectively, all are expected in Corpus Christi federal court at 2:00 p.m. before U.S. Magistrate Judge B. Janice Ellington.
The last defendant - Robert Anthony Trevino, 51, of Victoria - is also charged but not in custody. He is considered a fugitive and a warrant remains outstanding for his arrest. Anyone with information about his whereabouts is asked to contact Crime Stoppers at 713-222-TIPS or the Houston office of the FBI at 713-693-5000. Crime Stoppers of Houston is offering up to $5000 for information that leads to an arrest.
All but Walton, Petruska, Ortiz, and Gonzales III are charged as being associated with the TMM, an alleged criminal enterprise, from Nov. 1, 2013, through May 30, 2014.
The indictment alleges the TMM was created in the Texas prison system in 1984. The TMM started as a group of inmates trying to become aware of their cultural heritage. As it grew, the TMM rapidly moved away from its innocent roots to become involved in extortion, narcotic trafficking and murder, both inside and outside of the Texas prison system, according to the indictment. Members of the TMM are referred to as “carnales,” or “merecidos.” The indictment details how TMM members are governed by a strict code of conduct that is enforceable by serious bodily injury or death. Every member must be willing to lose his life and take a life whenever called upon.
The indictment alleges the TMM has a constitution that discusses many different aspects of the organization. The constitution states that the TMM is a criminal organization that deals in drugs, assassination contracts, prostitution, robbery and firearms. The TMM constitution states that 10 percent of the profits from any member’s business or interest shall be contributed to the organization. This is referred to as “the dime.”
The primary source of income of the TMM allegedly comes from collection of “the dime,” collected from members, prospective members and sympathizers. TMM members and prospective members allegedly often earn their income by threatening individuals with harm if the individuals do not pay the TMM member for protection from other threats. The indictment alleges TMM members and prospective members earn their income by extorting others who traffic in illegal drugs. TMM members, prospective member, and sympathizers also earn their income by trafficking in illegal drugs, according to the charges. The illegal drugs are allegedly distributed by the enterprise, which includes heroin, methamphetamine and cocaine.
If convicted of the RICO conspiracy, these defendants face a up to 20 years in federal prison and a possible $250,000 fine.
The remaining counts allege specific drug and firearms charges. Maseda, Walton, Petruska and Ortiz are charged with conspiracy to possess with intent to distribute cocaine base (crack cocaine), for which they face a minimum of five and up to 40 years in prison and a maximum $5 million fine.
Maseda and Gracia are charged with conspiring to possess with intent to distribute cocaine, while Zapata and Gonzales III allegedly conspired to possess cocaine and methamphetamine with the intent to distribute. They all face a maximum of 20 years and a possible $1 million fine.
The final two counts charge Cisneros with possessing heroin and cocaine with intent to distribute, which also carries the same maximum of 20-year-prison term, and for being a felon in possession of a firearm for which he faces another 10 years imprisonment.
Multiple law enforcement agencies conducted the investigation and executed the arrests – FBI; Bureau of Alcohol, Tobacco, Firearms and Explosives; Drug Enforcement Administration; U.S. Marshals Service; Texas Department of Public Safety; Customs and Border Protection; Victoria County Sheriff’s Office; and police departments in Corpus Christi, Port of Corpus Christi, Victoria, Portland, Aransas Pass and Ingleside. Assistant U.S. Attorney Michael Hess 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.
Permanent Resident in Mission Heads to Federal Prison for Meth and Marijuana SmugglingRead the Press Release
McALLEN, Texas – A Mexican national and lawful permanent resident from Mission has been ordered to federal prison following his convictions of conspiring to possess with the intent to distribute marijuana and methamphetamine, announced U.S. Attorney Kenneth Magidson. Felipe Rivera-Paredes, 55, pleaded guilty March 31, 2016.
U.S. District Judge Micaela Alvarez sentenced Rivera-Paredes to 210 months in custody on both counts to run concurrently. He is expected to face deportation proceedings following his release from prison. As part of the sentence, Judge Alvarez found Rivera-Paredes was a leader-organizer of a drug trafficking group of five or more people.
Rivera-Paredes was arrested Oct. 22, 2015, after negotiating the sale of approximately 485 grams of methamphetamine with an undercover agent.
He initially began communicating with the agent in July 2014 and soon began discussions regarding marijuana smuggling. He coordinated the transportation of marijuana on multiple occasions from September to October 2014. Each of those instances resulted in the arrest of the individuals who later took possession of the marijuana. In total, Rivera-Paredes turned over approximately 842 total kilograms of marijuana.
He also negotiated the sale of 485 grams of methamphetamine with an undercover agent in September 2015, culminating in his arrest.
Rivera-Paredes and remains in custody pending his transfer to the Bureau of Prisons.
Homeland Security Investigations and the Drug Enforcement Administration conducted the joint investigation. Assistant U.S. Attorney Joseph Leonard is prosecuting the case.