Southern District of Texas
Press releases recorded for this federal judicial district.
Mexican Citizen Heads to Federal Prison for Possessing Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – A Mexican citizen who had been living in Corpus Christi has pleaded guilty to possession of child pornography, announced U.S. Attorney Kenneth Magidson. Rogelio Alfaro Carrillo, 27, pleaded guilty Feb. 4, 2016.
Today, U.S. District Judge Nelva Gonzales Ramos ordered he serve a total of 72 months in federal prison. He was further ordered to serve 10 years of supervised release following completion of his prison term. During the hearing, the court heard testimony from an agent with Homeland Security Investigations (HSI) who testified that some of the images and videos depicted children as young as four years old engaged in sexually explicit conduct. Carrillo will also be ordered to register as a sex offender.
At the time of his plea, the court heard that officers with the Corpus Christi Police Department (CCPD), while using peer-to-peer software, were able to successfully download of various files containing child pornography from an IP address that was associated with Carrillo.
In August 2015, agents executed a search warrant at Carrillo’s residence, at which time they seized various electronic devices. Forensic analysis on those devices revealed more than 1,400 images and more than 20 videos of child pornography. Carrillo admitted having an sexual interest in children and having downloaded child pornography.
Carrillo will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
HSI conducted the investigation with the assistance of CCPD - 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."
Man Who Filed 26 False Tax Claims and Obstructed IRS Gets Significant SentenceRead the Press Release
HOUSTON – A federal judge has ordered Kenneth Robert Bruce to federal prison following his numerous convictions of willfully filing a false claim and impeding the IRS, announced U.S. Attorney Kenneth Magidson along with Special Agent in Charge Rick Goss of IRS - Criminal Investigation (CI). A jury convicted Bruce on all counts as charged March 19, 2015, following a five-day trial and approximately 2.5 hours of deliberation.
Today, U.S. District Judge Nancy Atlas, who presided over the trial, handed Bruce a 15-year-sentence and further ordered he pay more than $3.3 million to the IRS. He must also serve three years of supervised release following completion of the prison term. In handing down the sentence, Judge Atlas noted Bruce’s sophisticated scheme and that his relevant conduct - his intended tax loss in the entire scheme - was between $65 million and $150 million.
During trial, the jury heard that Bruce prepared 26 false income tax returns or amended income tax returns claiming a total of more than $9 million in false income tax refunds. One return was for himself and 25 were for other taxpayers.
“Knowingly falsifying documents filed with the IRS is a serious crime,” said Goss. “This defendant not only created false income forms but used those forms to make fraudulent claims in excess of $9 million against the U.S. government. IRS-CI agents are committed to stopping this type of abuse of the tax system.”
Bruce attached false IRS forms 1099-OID (Original Issue Discount) to the tax returns, falsely reporting the taxpayers had received huge amounts of income from OID and had all or nearly all of the false amounts of income withheld for federal income taxes. The huge, false amounts of withholdings formed the bases for the claims for false claims for tax refunds.
The jury also convicted Bruce on one count of corruptly endeavoring to obstruct and impede the administration of the Internal Revenue Code.
Bruce 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 convictions were the result of an investigation by IRS - CI and the Treasury Inspector General for Tax Administration. Assistant U.S. Attorneys Charles J. Escher and Jim McAlister are prosecuting the case.
22 Charged in SDTX as Part of Largest National Medicare Fraud Takedown in HistoryRead the Press Release
HOUSTON – Attorney General Loretta E. Lynch and Department of Health and Human Services (DHHS) Secretary Sylvia Mathews Burwell announced today an unprecedented nationwide sweep led by the Medicare Fraud Strike Force in 36 federal districts, resulting in criminal and civil charges against 301 individuals, including 61 doctors, nurses and other licensed medical professionals, for their alleged participation in health care fraud schemes involving approximately $900 million in false billings. Twenty-three state Medicaid Fraud Control Units also participated in today’s arrests. In addition, the HHS Centers for Medicare & Medicaid Services (CMS) is suspending payment to a number of providers using its suspension authority provided in the Affordable Care Act. This coordinated takedown is the largest in history, both in terms of the number of defendants charged and loss amount. “As this takedown should make clear, health care fraud is not an abstract violation or benign offense – It is a serious crime,” said Lynch. “The wrongdoers that we pursue in these operations seek to use public funds for private enrichment. They target real people – many of them in need of significant medical care. They promise effective cures and therapies, but they provide none. Above all, they abuse basic bonds of trust – between doctor and patient; between pharmacist and doctor; between taxpayer and government – and pervert them to their own ends. The Department of Justice is determined to continue working to ensure that the American people know that their health care system works for them – and them alone.” “The largest multiple defendant takedown of those who were involved in large scale health care fraud against the USA sends a tremendous message to the public of our vigilance. Such wrongdoing will be uncovered and prosecuted,” said U.S. Attorney Kenneth Magidson. “These cases are part of our continuing effort to combat greed in our health care system, not only in the Houston metropolitan area, but also in our other offices in South Texas. We are committed to a sustained effort to continue to root out health care fraud.” In the Southern District of Texas (SDTX), the United States Attorney’s Office (USAO) and the Department of Justice Medicare Fraud Strike Force charged 22 individuals in 11 cases involving over $136 million in alleged fraud. One of these defendants is a physician with the highest number of referrals to home health services in the SDTX. Houston physician John Ramirez, 62, has been charged with participating in separate schemes to bill Medicare for medically unnecessary home health services that were often not provided. He is charged with four counts of conspiracy to commit health care fraud. In this $18 million Medicare fraud scheme, Ramirez allegedly authorized home-health services for Medicare beneficiaries when such services were not medically necessary, not provided by the home health agency or both. Medicare paid over $15 million to numerous companies that submitted claims to Medicare using the fraudulent home health referrals from the physician, according to the indictment. Also charged in this case is Susana Bermudez, 49, of Houston, the owner of Milten Clinic in Houston. She was indicted on one count of conspiracy to commit health care fraud for allegedly selling signed certifications to home health agencies. The agencies then would bill Medicare for purported home health services that were medically unnecessary, not provided, or both. In a separate but related case, Ramirez, Ann Sheperd, 60, of Houston, and Yvette Nwoko, 27, of Houston, were indicted on one count of conspiracy to commit health care fraud and three counts of health care fraud. The charges stem from their alleged roles in an $20 million Medicare fraud scheme. Sheperd was the owner and operator of Amex Medical, while Nwoko was the manager. The indictment alleges Shepherd and Nwoko would make it appear as if Medicare beneficiaries qualified for home health services when, in fact, the beneficiaries did not need the services. Shepherd allegedly paid doctors to sign false certifications. In return, Shepherd and Nwoko would sell the certifications to home health agencies, according to the charges. These agencies would then bill Medicare for home health services that were not necessary, not provided, or both. These cases are being jointly prosecuted by the USAO and the Strike Force. In another case prosecuted by the USAO, Gwendolyn Arnetta Gibbs aka Gwendolyn Arnetta Guidry, 64, of Missouri City, and Justina Obumnador Uzowulu, 55, are charged in a 20-count indictment for their participation in a $15 million health care fraud conspiracy. Gibbs is the owner and operator of Daybreak Rehabilitation Center. The indictment alleges he paid kickbacks to Uzowulu, who operates a group home in Houston, who would then bring her residents to Gibbs’ partial hospitalization program for group therapy. Gibbs could then bill Medicare for treatment, according to the indictment. Gibbs is also charged with billing group therapy sessions under a doctor who no longer worked at Daybreak. In McAllen, the owner of a Rio Grande Valley area durable medical equipment (DME) company and six others have been charged in a 16-count indictment for allegedly submitting false and fraudulent claims to Texas Medicaid for DME equipment that was not provided and/or was not authorized by a physician. Maria Garza, 41, of McAllen, is an owner of DME company Hacienda DME. Also charged were employees Bertha Lopez, 61, of Sullivan City, who served as a marketer and vendor for the company; Miriam Aguilar, 31, of Rio Grande City, a delivery driver and recruiter; and Nancy Rangel, 30, of Mission, who was a biller and recruiter. Veronica Cruz, 32, of Donna, Angelica Saenz, 44, of Mission, and Yolotzi Lara, 28, of Penitas, were charged for their roles as recruiters for Hacienda DME. According to the indictment, the defendants forged and/or caused others to forge the signatures of physicians on the required prescription forms. They also allegedly billed for larger, higher-paying sizes of pull-ups and diapers regardless of whether those sizes were needed or provided in order to receive higher reimbursements from Texas Medicaid. Further, the defendants also paid illegal kickbacks in exchange for patient information, according to the indictment. Additionally, the Strike Force has returned seven additional indictments and informations in the SDTX, charging nine more defendants in cases involving over $80 million. The operations announced today are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. The Medicare Fraud Strike Force operates in nine locations and since its inception in March 2007 has charged over 2,900 defendants who collectively have falsely billed the Medicare program for over $8.9 billion. Including today’s enforcement actions, nearly 1,200 individuals have been charged in national takedown operations, which have involved more than $3.4 billion in fraudulent billings. Today’s announcement marks the second time that districts outside of Strike Force locations participated in a national takedown, and they accounted for 82 defendants charged in this takedown. The cases announced today are being prosecuted and investigated by U.S. Attorney’s Offices nationwide, along with Medicare Fraud Strike Force teams from the Criminal Division’s Fraud Section and from the U.S. Attorney’s Offices of the Southern District of Florida, Eastern District of Michigan, Eastern District of New York, Southern District of Texas, Central District of California, Eastern District of Louisiana, Northern District of Texas, Northern District of Illinois and the Middle District of Florida; and agents from the FBI, DHHS-Office of Ispector General, Drug Enforcement Administration, Defense Criminal Investigative Service and state Medicaid Fraud Control Units. The court documents for each case will posted online, as they become available, here: https://www.justice.gov/opa/documents-and-resources-june-22-2016-medicare-fraud-strike-force-press-conference. An indictment or information is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law. ###Federal and State Authorities Arrest 15 Individuals on Federal Drug Trafficking and Money Laundering ChargesRead the Press Release
Federal, state and local authorities have arrested 15 individuals charged in connection with a drug trafficking and money laundering conspiracy occurring in South Texas, Central Texas and Oklahoma.
That announcement was made today by United States Attorney Richard L. Durbin, Jr., Western District of Texas; United States Attorney Kenneth Magidson, Southern District of Texas; Internal Revenue Service-Criminal Investigation Special Agent in Charge William Cotter, San Antonio Division; and, Drug Enforcement Administration Special Agent in Charge Joseph M. Arabit, Houston Division.
Those arrested include:
Name Age Residence
Juan Villarreal-Arelis (aka “Juando”) 43 Mission, TX
Reymundo Villarreal-Arelis (aka “Mundo”) 45 Mission
Jose Luis Villarreal-Gonzalez (aka “Nune”) 32 Mission
Manuel Villarreal-Garcia 40 Mission
Sergio Guadalupe Adame-Ochoa 65 McAllen, TX
Norma Leticia Villarreal-Garcia 47 Mission
Iza Corina Flores-Alanis 36 Mission
Jovanna Villarreal-Diaz 37 Mission
Raymundo Villarreal, Jr. (aka “Mundito”) 23 Mission
Gilberto Villarreal-Villarreal 27 Mission
Juan Antonio Villarreal 24 Mission
Jesus Jaime Andrade 37 Mission
Denis Winn 54 Tecumseh, OK
Jose Luis Villarreal-Arelis (aka “El Cosas”) 57 Mission
Nancy Isela Villarreal-Gonzalez 51 MissionA nine–count federal grand jury indictment, returned in San Antonio in April and unsealed today, charges all of the defendants with conspiracy to commit money laundering. According to the indictment, since January 2000, the defendants have conspired to: (1) engage in financial transactions using proceeds derived from the importation, receiving, concealment, buying, and/or selling cocaine; and (2), transport or transmit monetary instruments to locations outside of the United States in an effort to conceal the source, ownership and control of proceeds derived from unlawful activity.
Sergio Guadalupe Adame-Ochoa is also charged with four counts of wire fraud affecting a financial institution. According to the indictment, on multiple occasions beginning in 2006, Adame-Ochoa refinanced an almost $1.7 million note with Texas Regional Bank (formerly Border Capital Bank and McAllen National Bank) for the purchase of a property called Riverside Plaza in Mission. The indictment alleges that Adame-Ochoa falsely represented to the bank that he had a non-taxable annual cash flow income in excess of $500,000.
Raymundo Villarreal, Jr., Jesus Andrade, and Denis Winn are also charged with one count of conspiracy to structure transactions to evade reporting requirements. The indictment alleges that beginning in 2011, the defendants purchased American Quarter Horses from an auction house in Oklahoma using drug proceeds collected in San Antonio. The indictment specifically identifies six occasions in October and November 2011, where payments were made for horses. Each payment was under $10,000 so as to avoid having to complete an IRS form 8300, which would have alerted the IRS and possibly raised suspicion about the source of the funds.
Juan Villarreal-Arelis, Reymundo Villarreal-Arelis, Jose Luis Villarreal-Gonzalez and Manuel Villarreal-Garcia are also charged with one count of possession of cocaine with intent to distribute. The indictment alleges that since January 2000, the defendants have conspired to possess and distribute cocaine.
The indictment also seeks the forfeiture of twelve (12) real estate properties in Cameron and Hidalgo counties with an estimated value of $15 million. The indictment also seeks a money judgment against the defendants in the amount of $30 million representing the alleged proceeds derived from their criminal enterprise.
Throughout this investigation, authorities have seized over 100 kilograms of cocaine. Yesterday, authorities seized approximately $500,000 in farm equipment; approximately 20 vehicles; more than 60 firearms; over 30 horses; and, more than $50,000 in U.S. Currency.
Yesterday, authorities arrested Sergio Adame-Ochoa in San Antonio and Denis Winn in Austin. The rest of the defendants were all arrested in the McAllen/Mission, TX, area. All of the defendants remain in federal custody awaiting detention hearings.
This investigation was conducted by the Internal Revenue Service-Criminal Investigation Waco Treasury Task Force comprised of IRS-CI, Irving Police Department, Woodway Police Department, Texas Department of Public Safety and the McLennan County Sheriff’s Office together with the Drug Enforcement Administration’s McAllen, San Antonio and Houston field offices and Homeland Security Investigations. The United States Marshals Service in both the Western and Southern Districts of Texas assisted with yesterday’s arrests.
Upon conviction, the defendants face sentences of between ten years and life in federal prison on the drug conspiracy charge; up to 20 years in federal prison for the money laundering conspiracy charge; and, up to five years in federal prison on the structuring charge.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Alleged Bank Robbers Ordered to Remain in Federal CustodyRead the Press Release
HOUSTON – Four members of a crew allegedly responsible for 20 armed bank robberies in the greater Houston and San Antonio areas will remain in federal custody without bond pending further criminal proceedings, announced U.S. Attorney Kenneth Magidson.
A federal grand jury returned the 15-count indictment May 25, 2016, against Eric Beverly, 27, Gregory Babers, 25, Julien Francis, 25, and Jerrick Hoskins, 26, all of Houston. They are charges with conspiracy to commit bank robbery and multiple counts of aiding and abetting bank robbery and brandishing a firearm during and in relation to a crime of violence. Authorities took Beverly into custody June 3, while Francis was arrested June 8. Babers and Hoskins were taken into custody June 9.
On June 10, all four defendants appeared before U.S. Magistrate Judge Dena Hanovice Palermo for a detention hearing, after which it was determined that they should be held in custody without bond pending further criminal proceedings. During the hearing, evidence was presented indicating that the crew committed 20 take-over style robberies between July 25, 2014, and May 2, 2015. During the alleged crimes, two or more men wearing masks would enter the banks while at least one of them brandished a firearm. Inside, one or more of the men allegedly demanded money from employees at gunpoint, jumped over teller counters and would grab money from the teller drawers. It is alleged that the conspirators robbed three of the banks on more than one occasion.
Today, Judge Palermo issued detention orders indicating probable cause the crimes were committed. The court further found them to be a danger to the community.
Each faces up to five years in prison if convicted of the conspiracy to commit bank robbery. For aiding and abetting bank robbery, they also face a maximum of 25 years in federal prison upon each conviction. In addition, they face a mandatory seven-year sentence for the first conviction of brandishing a firearm, plus 25 years for every subsequent firearm conviction which must be served consecutively to each other and to the other sentences. All 15 counts also carry a possible fine of $250,000.
The FBI Violent Crime Task Force investigated, which included agents and officers of the Harris County Sheriff’s Office and the Houston Police Department. Assistant U.S. Attorneys Carrie Wirsing and Jill Stotts are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Businessman Pleads Guilty to Foreign Bribery and Tax Charges in Connection with Venezuela Bribery SchemeRead the Press Release
The owner of multiple U.S.-based energy companies pleaded guilty today to foreign bribery and tax charges for his role in a scheme to corruptly secure energy contracts from Venezuela’s state-owned and state-controlled energy company, Petroleos de Venezuela S.A. (PDVSA).
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Kenneth Magidson of the Southern District of Texas, Acting Special Agent in Charge Sean McElroy of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) in Houston, and Special Agent in Charge Richard Goss of Internal Revenue Service-Criminal Investigation’s (IRS-CI) Houston Field Office made the announcement.
Roberto Enrique Rincon Fernandez (Rincon), 55, of The Woodlands, Texas, pleaded guilty today in federal court in Houston to an information charging him with one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA), one count of violating the FCPA and one count of making false statements on his 2010 federal income tax return. U.S. District Judge Gray H. Miller of the Southern District of Texas accepted Rincon’s plea and imposed a personal money judgment against Rincon, who agreed to a forfeiture. Sentencing is scheduled for Sept. 30, 2016.
Rincon was arrested on Dec. 16, 2015, after a grand jury in the Southern District of Texas returned an 18-count indictment against him and Abraham Jose Shiera Bastidas (Shiera), 53, of Coral Gables, Florida.
According to admissions made in connection with Rincon’s plea, Rincon and Shiera worked together to submit bids to provide equipment and services to PDVSA through their various companies. Rincon admitted that beginning in 2009, he and Shiera agreed to pay bribes and other things of value to PDVSA purchasing analysts to ensure that his and Shiera’s companies were placed on PDVSA bidding panels, which enabled the companies to win lucrative energy contracts with PDVSA. Rincon also admitted to making bribe payments to other PDVSA officials in order to ensure that his companies were placed on PDVSA-approved vendor lists and given payment priority so that they would get paid ahead of other PDVSA vendors with outstanding invoices. In his plea agreement, Rincon admitted that he willfully failed to report on his 2010 federal tax return over $6 million in foreign dividend income he received from a Venezuelan corporation he owned.
Rincon is the sixth individual to plead guilty as part of a larger, ongoing investigation by the U.S. government into bribery at PDVSA. Shiera previously pleaded guilty before Judge Miller to one count of conspiracy to violate the FCPA and commit wire fraud and one count of violating the FCPA and is scheduled to be sentenced on Sept. 30, 2016. In March 2016, Judge Miller also unsealed charges against four other individuals charged in connection with the ongoing investigation, including three foreign officials. The foreign officials admitted that while employed by PDVSA or its wholly owned subsidiaries or affiliates, they accepted bribes from Rincon and Shiera in exchange for taking certain actions to assist companies owned by Rincon and Shiera in winning energy contracts with PDVSA. The foreign officials also conspired with Rincon and Shiera to launder the proceeds of the bribery scheme, they admitted. As part of their plea agreements, Rincon, Shiera and the other defendants all agreed to forfeit proceeds from their criminal activity.
ICE-HSI and IRS-CI are conducting the ongoing investigation, with assistance from the FBI. Trial Attorneys Aisling O’Shea and Jeremy R. Sanders of the Criminal Division’s Fraud Section and Deputy Chief John Pearson and Assistant U.S. Attorney Robert S. Johnson of the Southern District of Texas are prosecuting the case. Assistant U.S. Attorneys Kristine Rollinson and Vincent Carroll of the Southern District of Texas are handling the forfeiture aspects of the case.
The Criminal Division’s Office of International Affairs and the Swiss Federal Office of Justice also provided assistance.
Additional information about the department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Businessman Pleads Guilty to Foreign Bribery and Tax Charges in Connection with Venezuela Bribery SchemeRead the Press Release
HOUSTON – The owner of multiple U.S.-based energy companies pleaded guilty today to foreign bribery and tax charges for his role in a scheme to corruptly secure energy contracts from Venezuela’s state-owned and state-controlled energy company, Petroleos de Venezuela S.A. (PDVSA).
U.S. Attorney Kenneth Magidson made the announcement along with Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting Special Agent in Charge Sean McElroy of Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) in Houston and Special Agent in Charge Richard Goss of Internal Revenue Service-Criminal Investigation’s (IRS-CI) Houston Field Office.
Roberto Enrique Rincon Fernandez (Rincon), 55, of The Woodlands, pleaded guilty today to an information charging him with one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA), one count of violating the FCPA and one count of making false statements on his 2010 federal income tax return. U.S. District Judge Gray H. Miller accepted Rincon’s plea and imposed a personal money judgment against him, who agreed to a forfeiture. Sentencing is scheduled for Sept. 30, 2016.
Rincon was arrested on Dec. 16, 2015, after a grand jury returned an 18-count indictment against him and Abraham Jose Shiera Bastidas (Shiera), 53, of Coral Gables, Florida.
According to admissions made in connection with Rincon’s plea, Rincon and Shiera worked together to submit bids to provide equipment and services to PDVSA through their various companies. Rincon admitted that beginning in 2009, he and Shiera agreed to pay bribes and other things of value to PDVSA purchasing analysts to ensure that his and Shiera’s companies were placed on PDVSA bidding panels, which enabled the companies to win lucrative energy contracts with PDVSA. Rincon also admitted to making bribe payments to other PDVSA officials in order to ensure that his companies were placed on PDVSA-approved vendor lists and given payment priority so that they would get paid ahead of other PDVSA vendors with outstanding invoices. In his plea agreement, Rincon admitted he willfully failed to report on his 2010 federal tax return over $6 million in foreign dividend income he received from a Venezuelan corporation he owned.
Rincon is the sixth individual to plead guilty as part of a larger, ongoing investigation by the U.S. government into bribery at PDVSA. Shiera previously pleaded guilty before Judge Miller to one count of conspiracy to violate the FCPA and commit wire fraud and one count of violating the FCPA and is scheduled to be sentenced on Sept. 30, 2016. In March 2016, Judge Miller also unsealed charges against four other individuals charged in connection with the ongoing investigation, including three foreign officials. The foreign officials admitted that while employed by PDVSA or its wholly owned subsidiaries or affiliates, they accepted bribes from Rincon and Shiera in exchange for taking certain actions to assist companies owned by Rincon and Shiera in winning energy contracts with PDVSA. The foreign officials also conspired with Rincon and Shiera to launder the proceeds of the bribery scheme. As part of their plea agreements, Rincon, Shiera and the other defendants all agreed to forfeit proceeds from their criminal activity.
ICE-HSI and IRS-CI are conducting the ongoing investigation with assistance from the FBI. Deputy Chief John Pearson and Assistant U.S. Attorney Robert S. Johnson are prosecuting the case along with Trial Attorneys Aisling O’Shea and Jeremy R. Sanders of the Criminal Division’s Fraud Section. Assistant U.S. Attorneys Kristine Rollinson and Vincent Carroll are handling the forfeiture aspects of the case.
The Criminal Division’s Office of International Affairs and Swiss Federal Office of Justice also provided assistance.
Additional information about the department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Two Arkansas Men Charged in Large-Scale Marijuana and Money Laundering ConspiracyRead the Press Release
CORPUS CHRISTI, Texas - Two men have been taken into custody in an Organized Crime Drug Enforcement Task Force (OCDETF) operation dubbed Operation Black Mask, announced U.S. Attorney Kenneth Magidson.
A federal grand jury indicted David Lee Perry, 45, of Little Rock, Arkansas, and Trolaurice Vaughnzedrick Walker aka T.W., 39, of Texarkana, Arkansas, May 11, 2016. The court unsealed the indictment following their arrests yesterday and today. Perry and Walker are expected to make appearances in court before U.S. Magistrate Judges Beth Deere in Little Rock and Barry Bryant in Texarkana, respectively.
Both are charged with conspiracy to possess with intent to distribute more than 1,000 kilograms of marijuana. Perry is also charged with conspiracy to commit money laundering. The indictment alleges the offenses spanned from 2013 to the present.
Also included in the indictment is a notice of criminal forfeiture regarding a Bank of America bank account in the name of Perry’s Auto Sales Inc. and property derived from proceeds of the criminal conduct or used to commit the violations. The government intends to seek a personal money judgment from the defendants in the amount of $250,000.
If convicted of the marijuana conspiracy, both face a minimum of 10 years and up to life in federal prison and a possible $10 million fine. Walker also another 20 years, upon conviction, as well as a possible $500,000 fine or twice the value of the monetary instrument or funds involved in the transactions or both.
The OCDETF investigation was conducted in Corpus Christi, McAllen, Mission, Falcon Dam, Rio Grande City, Texarkana and Houston. Investigating agencies included Homeland Security Investigations; Internal Revenue Service - Criminal Investigation; Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms, and Explosives; Customs and Border Protection; Texas Department of Public Safety; Starr County High Intensity Drug Trafficking Area task force; sheriff’s offices in the Texas counties of Jim Wells, Hidalgo, Hunt and Harris; Miller County, Arkansas, Sheriff’s Office; police departments in Alice, McAllen, Pharr and Texarkana; and the U.S. Marshals Service.
Assistant U.S. Attorney Julie K. Hampton is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Four Charged with Armed Robbery of Several Area Meat MarketsRead the Press Release
HOUSTON – Four men have been indicted on charges associated with the armed robbery of multiple La Michoacana meat markets in December 2015, announced U.S. Attorney Kenneth Magidson.
A federal grand jury returned the 13-count indictment today against Billie Hawkins, 20, Laroderick Martin, 19, Jirron Curtis, 21, and Marcus Malbro, 18, all of Houston. They are currently in state custody and are expected to make their initial appearances before a U.S. magistrate judge in the near future.
The indictment alleges the four men robbed Houston-area La Michoacana meat markets and the Barri Financial Group Kiosks within the stores in December 2015. In each robbery, they were armed, masked and often fired shots into the stores and/or the ceilings, according to the charges. On some occasions they also allegedly assaulted employees. The indictment further indicates the men would drive a stolen vehicle to commit the robberies, then would meet a co-conspirator to depart in a “switch” vehicle.
Locations were scouted prior to the robberies to ensure there were no guards or security, according to the indictment.
The targeted locations included La Michoacana Meat Market and Barri kiosk at 8501 Gulf Freeway, La Michoacana Meat Market at 3910 Aldine Mail Road, La Michoacana Meat Market at 15707 Westpark Road and La Michoacana Meat Market on 1424 Spring Cypress Road in Spring.
Each defendant faces up to 20 years imprisonment for aiding and abetting interference of commerce by robbery, upon conviction. For aiding and abetting the discharge of a firearm during a crime of violence, the possible punishment is up to 10 years in federal prison. Further, if convicted of aiding and abetting the brandishing of a firearm during a crime of violence, a defendant faces another mandatory and consecutive seven years. Each subsequent conviction for the use of a firearm is another 25 years which must be served consecutively to each other and to any other prison term imposed.
The Bureau of Alcohol, Tobacco, Firearm and Explosives conducted the investigation along with FBI, Houston Police Department and Harris County Sheriff’s Office. Assistant U.S. Attorney Celia Moyer is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Transporting and Harboring Undocumented Aliens Lands Four in PrisonRead the Press Release
McALLEN, Texas – Three men and one woman who conspired to transport and harbor illegal aliens have been sentenced to prison, announced U.S. Attorney Kenneth Magidson. Jorge Luis Ortiz-Aguilera, 36, of Mexico; and Jose Mario Ledezma-Vega, 47, and Willie Vargas, 34, both of Edinburg, pleaded guilty in January 2016 to conspiring to transport illegal aliens within the U.S. Juan Covarrubias-Hernandez, 30, and Anayeli Gonzalez-Trejo, 25, both of Mexico, had pleaded guilty to conspiring to harbor illegal aliens.
Today, U.S. District Judge Randy Crane took into consideration the leadership roles of Ortiz-Aguilera and Ledezma-Vega and handed them each a 51-month sentence. Ortiz was the head of the organization and Ledezma was in charge of coordinating the scouts in the Rio Grande Valley which facilitated the transportation/movement of the aliens to the Houston area. Vargas and Gonzalez-Trejo received respective sentences of 17 months and 12 months and a day. Covarrubias-Hernandez will be sentenced at a later date.
From on or about July 2015 through October 2015, Ortiz-Aguilera coordinated the transportation of aliens from the Rio Grande Valley in Texas to a location near Houston. During the course of the conspiracy, Ledezma-Vega and Vargas acted as “scouts” for law enforcement for the vehicles transporting the aliens, in an attempt to avoid their detention.
In October 2015, working with the same organization, Covarrubias-Hernandez and Gonzalez-Trejo jointly provided food and shelter to group of aliens at their home in Donna. The aliens was subsequently apprehended by Border Patrol agents as they were being transported further north.
All five defendants have been and will remain in custody.
The investigation was the result of an investigation led by Border Patrol with the assistance of Homeland Security Investigations. Assistant U.S. Attorney Linda Requénez prosecuted the case.
Houston Man Convicted of Multiple Counts Involving Child PornographyRead the Press Release
HOUSTON – A 48-year-old man from Houston has entered a guilty plea to sexual exploitation of a child, distribution and possession of child pornography, announced U.S. Attorney Kenneth Magidson.
William Lee Niver appeared today before U.S. District Judge Gray Miller and entered a plea of guilty to one count of production of child pornography, two counts of distribution of child pornography and one count of possession of child pornography.
Niver first came to the attention of law enforcement after he had sent images of child pornography to an undercover agent. Federal agents executed a search warrant at Niver’s residence and performed a forensic examination on his computer which resulted in the discovery of more than 6,000 images and 1,000 videos of young children engaged in sexually explicit conduct. The images included children under the age of 12, bondage and acts of violence. Some of the images are of known victims as identified through the National Center for Missing and Exploited Children.
At the time of the plea, Niver admitted to taking sexually explicit photographs and a video of a minor relative and emaileing them to others.
Judge Miller has set sentencing for Sept. 1, 2016. At that time, Niver faces a minimum of 15 and up to 30 years in federal prison for the production, up to 20 years imprisonment on each of the distribution convictions and a maximum of 10 years for possessing child pornography.
Homeland Security Investigations conducted the investigation.
This case, prosecuted by Assistant U.S. Attorneys Kimberly Ann Leo and Carrie A. Wirsing, 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."
Houston Physician Sentenced in Health Care Fraud ConspiracyRead the Press Release
HOUSTON – Two defendants in a nearly $3 million fraudulent vestibular diagnostic testing scheme have been ordered to federal prison, announced U.S. Attorney Kenneth Magidson. Dr. Augustine Egbunike, 61, pleaded guilty Jan. 16, 2015, while Loretta Mbadugha, 58, also of Houston, entered a plea for her role in the scheme Dec. 12, 2014.
Today, U.S. District Judge Melinda Harmon ordered Egbunike to serve 57 months in prison and must pay $2 million in restitution to Medicare and Medicaid. Mbadugha was sentenced in May to 30 months and ordered to pay $404,157.12 in restitution. In addition, Mbadugha forfeited her home which was purchased with proceeds from the fraud.
Vestibular diagnostic testing is used to evaluate a person for vertigo or dizziness. Following diagnosis, patients usually undergo physical therapy, take medication or undergo surgery as treatment.
From approximately 2006 through 2010, Egbunike, Mbadugha and others falsely billed Medicare and Medicaid for numerous, unnecessary vestibular diagnostic tests. Some patients were tested more than 1,000 times. The evidence demonstrated that the testing was either not performed, not medically necessary or not performed by licensed individuals.
As a result of this unlawful scheme, Medicare and Medicaid were billed approximately $2.9 million and paid approximately $2 million. At the time, 88 percent of Egbunike’s Medicare and Medicaid income came from medically unnecessary vestibular testing.
This was the largest case among four, separate vestibular fraud indictments in the Houston area which totaled nearly $6 million.
To date, three physicians and four others have been sentenced in the four cases with $5,639,604.73 in restitution ordered returned to Medicare and Medicaid.
Egbunike has been detained since his arrest in 2014 where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The cases are the result of the investigative efforts of the Texas Attorney General’s Medicaid Fraud Control Unit, Department of Health and Human Services - Office of Inspector General, Office of Investigations, and the FBI. Special Assistant U.S. Attorneys Suzanne Bradley and Justin Blan and Assistant U.S. Attorney Tina Ansari are prosecuting the cases.
Houston Man Convicted of Wire FraudRead the Press Release
VICTORIA, Texas – A 56-year-old Houston man employed at the Alcoa Operations Plant in Point Comfort has been convicted of wire fraud, announced U.S. Attorney Kenneth Magidson.
Jack Kennedy was employed in the machine shop tool room at the plant. In his position, Kennedy was responsible for inventorying and ordering parts, tools and supplies used by Alcoa employees. Kennedy ordered and stole large quantities of expensive small parts, tools and supplies.
Authorities learned that Kennedy was selling the stolen tools to an individual in New York. Kennedy would email and fax the buyer in New York a list of tools available for purchase. Once Kennedy accepted the offer from the New York buyer, he would mail the tools via the United Parcel Service. The buyer would then mail a check to Kennedy’s home in Texas.
U.S. Magistrate Judge B. Janice Ellington accepted the guilty plea today. U.S. Circuit Judge Gregg Costa, sitting by designation, will sentence Kennedy Sept. 16, 2016. At that time, Kennedy faces up to 20 years in federal prison and a possible $250,000 maximum fine.
He was permitted to remain on bond pending sentencing.
The FBI initiated the investigation in March 2012. Assistant U.S. Attorney Hugo R. Martinez is prosecuting the case.
Corpus Christi Man Convicted of Kidnapping ChildRead the Press Release
CORPUS CHRISTI, Texas – A 20-year-old local man has admitted he kidnapped a six-year-old girl from her Corpus Christi home and intended to take her to Arizona, announced U.S. Attorney Kenneth Magidson.
Austin Carlin, of Corpus Christi, 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.
U.S. District Judge Nelva Gonzales Ramos accepted the guilty plea today and set sentencing for Sept. 22, 2016. At that time, Carlin faces a minimum of 20 years and up to life in federal prison and a possible $250,000 maximum fine.
Carlin has been and will remain in custody pending his sentencing hearing.
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.
“Babysitter” Admits to 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 pleaded guilty, announced U.S. Attorney Kenneth Magidson.
Rosa Linda Ganceres, 53, entered a guilty plea to sexual exploitation of a child, otherwise known as production child pornography.
The court heard today that Ganceres and her boyfriend - Daniel Benson Billman, 42, of Aransas Pass, and a registered sex offender - 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 is set for sentencing Sept. 22, 2016, before U.S. District Judge Nelva Gonzales Ramos. At that time, she faces a minimum of 15 and up to 30 years in federal prison as well as a possible $250,000 fine. Upon completion of any prison term imposed, Ganceres 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.
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."
Weslaco Man Convicted of Possessing Child Pornography VideosRead the Press Release
McALLEN, Texas – Daniel Miguel Salinas, 33, of Weslaco, has entered a guilty plea to possessing child pornography, announced U.S. Attorney Kenneth Magidson.
In October 2010, law enforcement began an investigation into a movie production company that operated a website offering child pornography and child erotica DVDs and streaming videos for sale. Authorities executed a search warrant in May 2011 on the business premises of that company and discovered customer order histories along with other evidence. During the review of the order histories, agents were able to identify Salinas as a customer who had purchased 11 downloads from the company’s website.
In addition, the National Center for Missing and Exploited Children (NCMEC) received a tip in August 2012 from the Microsoft Corporation concerning the uploading of possible child pornography into a file hosting service. Federal agents discovered that the email address associated with that activity belonged to Salinas.
Authorities executed a search warrant at Salinas’ Weslaco residence, during which time they seized several computers and various external storage media devices. A forensic examination on the devices revealed more than 130 images and 20 videos of child pornography movies involving clearly young children engaged in sexually explicit conduct. Some of the movies are of known victims as identified through NCMEC.
During his plea today, Salinas admitted to knowingly possessing the devices which contained child pornography. Further, Salinas admitted he knew such devices contained visual depictions of minors engaging in sexually explicit conduct.
Chief U.S. District Judge Ricardo Hinojosa accepted the guilty plea and set sentencing for Sept. 7, 2016. At that time, Salinas faces up to 10 years in federal prison and a possible $250,000 maximum fine. He will remain in custody pending that hearing.
The U.S. Postal inspection Service investigated.
This case, prosecuted by Assistant U.S. Attorneys Alex Benavides and Kimberly Ann Leo, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former TDCJ Parole Officer Convicted for Producing Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – Saralyn Ann Proschko, a former parole officer with the Texas Department of Criminal Justice (TDCJ), has pleaded guilty to sexual exploitation of a child, announced U.S. Attorney Kenneth Magidson. Proschko, 47, of Victoria, was charged along with her boyfriend - David Ray McGee, 48, of Wallis.
In July 2015, authorities with the Victoria Police Department (VPD) responded to the TDCJ - District Parole Office in Victoria in reference to allegations of possession of child pornography. Officers met with Proschko and discovered an electronic video on her cellular telephone of a juvenile female engaged in a sexual act. Further investigation led to the discovery and charging of McGee in relation to the allegations.
The court heard that McGee had met Proshko on a dating website. During their conversations, he had indicated he had a sexually fantasy. Soon after, Proschko began texting him photos of herself penetrating a young girl with various sexual objects. Eventually, that led to him sexually assaulting the young girl who had begged him to stop during the attack. In at least one instance, Procshko had actually held the toddler down while McGee assaulted her.
Proschko is set for sentencing Sept. 7, 2016, at which time she faces a minimum of 15 and up to 30 years in federal prison.
McGee pleaded guilty in November 2015 and was later sentenced to 27 years in federal prison. Upon his release, McGee will serve five years of supervised release during which he will have to comply with numerous requirements designed to restrict access to children and the Internet. He was also ordered to pay $2,537.60 in restitution and must register as a sex offender.
McGee and Proschko were arrested on the federal charges in July 2015 and have been in custody since that time where both will remain pending further criminal proceedings.
The charges are the result of the investigative efforts of Homeland Security Investigations, Texas Attorney General’s Office - Internet Crimes Against Children (ICAC), Houston-Metro ICAC Task Force and VPD.
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."
Falfurrias Mayor Pro Tem Pleads Guilty in Illegal Gambling Business OperationRead the Press Release
CORPUS CHRISTI, Texas - The mayor pro tem of Falfurrias has admitted she knowingly and intentionally aided and abetted an illegal gambling business operation in the state of Texas, announced U.S. Attorney Kenneth Magidson. Leticia Hernandez Garza aka Letty Garza, 58, entered a guilty plea this morning.
A federal grand jury indicted Garza on March 23, 2016, for aiding and abetting an illegal gambling business in Falfurrias from on or about Jan. 1, 2009, to on or about May 31, 2015. She surrendered the following day to federal authorities.
The illegal gambling business involved several people who conducted, financed, managed, supervised, directed and owned all or part of such business. The business was in substantially continuous operation for more than 30 days and had a gross revenue in excess of $2,000 in a single day.
Following a one-year undercover operation, agents identified Garza and the owners, operators or managers of multiple illegal casinos in the Falfurrias area. On May 31, 2015, law enforcement raided the game rooms and residences of the owners, seizing $4.9 million.
As part of her plea, Garza admitted to using her influence as Mayor Pro Tem to aid and abet several of the illegal gambling businesses.
U.S. District Judge Nelva Ramos accepted Garza’s plea today and has set sentencing for Sept. 22, 2016. At that time, Garza faces up to five years in federal prison and a possible $250,000 maximum fine. She was permitted to remain on bond pending that hearing.
The charges are the result of a two-year joint investigation by the FBI, Texas Rangers, Homeland Security Investigations, Kingsville Specialized Crimes and Narcotics Task Force, Secret Service, Brooks County Sheriff’s Office, Department of Public Safety - Criminal Investigations Division, Jim Wells County District Attorney's Office and the Texas Border Prosecution Unit. Assistant U.S. Attorney Mark Patterson is prosecuting the case.
Ex-HPD Officer Sentenced in Connection with Armored Car RobberyRead the Press Release
HOUSTON - A former police officer has been ordered to federal prison for his conviction of lying to investigators in relation to an armored car robbery that occurred in Houston in 2013, announced U.S. Attorney Kenneth Magidson. Joel Quezada, 33, of Humble, pleaded guilty Jan 11, 2016.
Today, U.S. District Judge Vanessa Gilmore, who accepted the guilty plea, ordered he serve 48 months in federal prison to be immediately followed by two years of supervised release.
At the time of his guilty plea, Quezada admitted he lied to investigators about accepting cash for monitoring his police radio during an armored car robbery that occurred on Dec. 6, 2013. At the time of the robbery, he was a full-time patrol officer with the Houston Police Department (HPD).
Quezada no longer works at HPD.
He was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
Four others were charged in a separate case with the actual robbery of the Loomis armored car. They have all been convicted and are pending sentencing before U.S. District Judge Keith Ellison in August 2016.
The investigation leading to the charges against Quezada was conducted by the FBI and HPD - Internal Affairs Division. Assistant U.S. Attorneys Andrew Leuchtmann and Carolyn Ferko are prosecuting the case.
Leader of Stolen Identity Refund Scheme Sent to Federal PrisonRead the Press Release
HOUSTON – Ronald Dewayne Hadley has been ordered to prison following his conviction for leading a Houston-area stolen identity refund fraud (SIRF) scheme, announced U.S. Attorney Kenneth Magidson along with Special Agent in Charge Rick Goss of IRS - Criminal Investigation (CI) in Houston.
Hadley pleaded guilty Aug. 28, 2015. Today, U.S. District Judge Melinda Harmon handed him a 48-month term in federal prison to be immediately followed by three years of supervised release. Judge Harmon also ordered Hadley to pay $317,790 in restitution to the IRS.
Three others also pleaded guilty in the scheme - Lyndell Leroy Price, Leondray Demond Garrison and Ryan Duron Clay – who will sentenced at later dates.
“This investigation demonstrates IRS-CI’s ability to detect identity thieves who believe they are protected under the cover of anonymity, said Mary Hammond, Assistant Special Agent in Charge of IRS-CI. “Perpetrators at all levels in a stolen identity refund fraud scheme will be pursued and prosecuted.”
According to information in the respective plea agreements, Hadley led a conspiracy to submit false tax returns to the IRS for tax years 2010 through 2012, which sought fraudulent refunds totaling approximately $811,710. The scheme began in the fall of 2011 when Hadley began to prepare and electronically file tax returns which falsely reported that taxpayers were barbers who had earned no wages but had received thousands of dollars of dividend income. The income was purportedly from supplies on which they had supposedly paid thousands of dollars of fictitious withholding taxes that were entitled to be refunded.
Hadley obtained taxpayer identification information both directly from these individuals as well as indirectly through the assistance of Price, Garrison and Clay. Hadley and his conspirators obtained debit cards in the names of these people whose identities were then used to electronically file false refund claims anonymously via public wi-fi access provided by local fast-food restaurants and a coffee shop. Hadley had the refunds credited to debit cards under the conspirators’ control. The co-conspirators withdrew the fraudulent refunds at local ATMs and used the debit cards at businesses spread across central, north and northwest Houston and Houston’s Third Ward.
The scheme began to unravel in the third tax season when IRS fraud detection measures revealed suspicious patterns among the fraudulent refund claims and took steps to prevent all but three of the claims submitted that year from being paid.
According to the pleas, Hadley e-filed all of the fraudulent tax returns and personally originated identity information for approximately half of the refund claims. His conspirators provided him with the remaining identities. Price provided Hadley with identities that generated fraudulent refund claims totaling almost $250,000 resulting in actual losses to the IRS of almost $130,000. Garrison provided identities that generated fraudulent refund claims totaling almost $95,000, while Clay provided identities that generated fraudulent refund claims totaling almost $40,000. The resulting in actual losses to the IRS for which Garrison and Clay responsible amounts to approximately $30,000 and $25,000, respectively.
All were permitted to remain on bond.
IRS-CI investigated. Assistant U.S. Attorney Jimmy Sledge Jr. is prosecuting the case.
West Columbia Man Sentenced for Distributing Child PornographyRead the Press Release
GALVESTON – West Columbia resident Joseph Robert Shoemake, 36, has been sentenced to federal prison following his conviction of distribution of child pornography, announced U.S. Attorney Kenneth Magidson. Shoemake pleaded guilty Dec. 16, 2015.
Today, U.S. District Judge George C. Hanks Jr. ordered Shoemake to serve 151 months in federal prison. The sentence will be immediately followed by 15 years of supervised release, during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. He will also be ordered to register as a sex offender.
A federal grand jury indicted Shoemake Aug. 19, 2015, following an investigation conducted by the Houston FBI Child Exploitation Task Force. That investigation revealed Shoemake was making child pornography available to others through the use of peer-to-peer software over the Internet. The images included children under the age of 12 being sexually violated by adults and children under the age of 12 in positions which caused their genitalia to be displayed in a lewd/lascivious manner. Bondage involving children was also present on his computer. Several images and videos also depicted minors under the age of five.
Law enforcement executed a search warrant at the home of a third party where Shoemake was using the Internet connection at that residence to receive and distribute child pornography in an attempt to avoid detection. The examination of the computer media ultimately obtained from Shoemake revealed more than 1,229 digital images and approximately 15 videos which contained child pornography.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case, prosecuted by Assistant U.S. Attorneys Julie N. Searle and Sherri L. Zack, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former DEA Agent Pleads Guilty to Child Pornography ChargesRead the Press Release
HOUSTON – A Massachusetts man who formerly resided in McAllen has entered a guilty plea to one count of access with intent to view child pornography, announced U.S. Attorney Kenneth Magidson. James Patrick Burke, 39, was a former special agent with the Drug Enforcement Administration (DEA).
Burke came to the attention of law enforcement after investigators found evidence he was accessing files from a website known to contain child pornography. A search warrant was executed at Burke’s McAllen residence on Aug. 14, 2015, at which time investigators seized a laptop computer and a desktop computer. Burke admitted downloaded and viewed child pornography from the Internet, but would use forensic wiping software to delete the images and movies.
The forensic examination revealed remnants of the TOR browser which Burke had used to access the child pornography website as well as forensic wiping software. Agents also found remnants of the movie titles that are suggestive of child pornography.
An examination of what was collected from the server side of the website showed that Burke had accessed a total of 77 threads which contained 345 contact sheets with approximately eight images of child pornography per sheet. These images included children under the age of 12, bondage and acts of violence. Some of the images are of known victims as identified through the National Center for Missing and Exploited Children.
Burke entered his guilty plea before U.S. District Judge Alfred H. Bennett who set sentencing for Oct. 20, 2016. At that time, Burke faces up to 10 years imprisonment and a possible $250,000 maximum fine. He was permitted to remain on bond pending that hearing.
The charges are the result of an investigation by the FBI.
This case, prosecuted by Assistant U.S. Attorneys Kimberly Ann Leo, Linda Requenez and Alexandro Benavides, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Drug Trafficker Sentenced in Two ConspiraciesRead the Press Release
LAREDO, Texas - The fourth of 20 defendants convicted in a conspiracy to possess with intent to distribute in excess of 1,000 kilograms of marijuana and money laundering scheme has been ordered to prison, announced U.S. Attorney Kenneth Magidson. Juan Manuel Vargas Aguilar aka “Chacalilla,” 46, of Nuevo Laredo, Mexico, previously pleaded guilty for his role in two separate drug conspiracies.
Today, U.S. District Judge Marina Garcia Marmolejo sentenced him for a conspiracy that spanned from June 10, 2011, to June 4, 2013, and for his involvement in a second conspiracy that occurred on Oct. 4, 2014. Judge Marmolejo consolidated the cases for sentencing and ordered he serve 70 months in prison. Not a U.S. citizen, he is expected to face deportations proceedings following his release from prison.
In the first conspiracy, Erasmo Trejo-Nava was the head of a drug trafficking organization that received marijuana loads from Mexico and arranged to transport the marijuana to the Dallas area. The organization used various stash houses and business fronts in the Laredo area to receive and prepare the marijuana for transportation via personal vehicles to a local warehouse where it was unloaded and reloaded onto tractor trailers.
Vargas was identified as a worker for the organization who assisted with virtually anything. He constructed wooden crates for the transportation of marijuana, re-wrapped the drugs, received loads at a local warehouse, assisted at stash houses along with other workers and conducted counter surveillance at stash houses and during the transportation of the narcotics.
Vargas Aguilar was implicated in the transportation of four separate loads of marijuana for the Trejo-Nava drug trafficking organization totaling 6,022 kilograms.
A total of 20 defendants were convicted in the Trejo-Nava conspiracy. A federal jury convicted Rafael Ortega aka Tio, 57, of Laredo, and Baltazar Ibarra Cardona, 55, of Nuevo Laredo, Mexico. Ortega and Ibarra Cardona were each ordered to serve 120 months in federal prison earlier this year. Erika Alvarez, 39, also of Nuevo Laredo, who was identified as Trejo Nava’s niece and pleaded guilty to the money laundering conspiracy received a sentence of 48 months. The court further issued a final order of forfeiture against Alvarez in the amount of $171,240.
The remaining 17 defendants had previously pleaded guilty and are also awaiting sentencing. Erasmo Abdon Trejo Nava, 44, Jose Angel Trejo, 43, Ovidio Rodriguez, 42, Victor Hugo Trejo Nava, 42, Francisco Colin, 42, and Salvador Saldaña-Medrano, 37, all of Laredo; Jaime Enrique Montalvo-Ruiz, 45, of Nuevo Laredo; and Leocadio Ruiz, 48, of Dallas, entered pleas of guilty to conspiring to possess with intent to distribute more than 1,000 kilograms of marijuana and conspiracy to launder drug proceeds. Four others, Mario Albert Rodriguez, 30, and Ricardo Ramirez, 34, both of Laredo; Arturo Lozano, 48, of Dallas; and Joshua Sanchez, 33, of Nuevo Laredo - pleaded guilty to the conspiracy. Gerardo Moreno Recio, 49, of Nuevo Laredo, was convicted of two separate counts of possession with intent to distribute more than 100 kilograms of marijuana, while Laura Heredia Garcia, 51, of Nuevo Laredo; and Raquel Margarita Ramos Jimenez, 45, and Leslie Bernice Trejo, 23, both of Laredo, entered pleas of guilty to one count of conspiracy tolaunder drug proceeds.
Following the arrest of Trejo-Nava in June 4, 2013, Vargas Aguilar moved on to work for another organization. He was arrested Oct. 4, 2014, along with Julio Cesar Valdez Casas at a ranch in North Laredo on Mines Road. Border Patrol agents had observed two vehicles near the area where five unidentified subjects were attempting to load bundles of marijuana weighing a total of 168 kilograms. When agents approached the vehicles, the subjects dropped the drugs and fled to Mexico. Valdez Casas was one of the drivers and arrested at the scene. Vargas Aguilar was driving the second vehicle and fled, but was later apprehended. Valdez Casas, 52, of Nuevo Laredo, was sentenced on March 31, 2015, to 60 months in federal prison.
The charges were the result of a long term Organized Crime Drug Enforcement Task Force Investigation dubbed Operation Trena Sin Trono spearheaded by the Drug Enforcement Administration, High Intensity Drug Trafficking Area Task Force and IRS - Criminal Investigation with the assistance of Homeland Security Investigations, Laredo Police Department, Zavala County Sheriff’s Office. Assistant U.S. Attorney Mary Lou Castillo is prosecuting the case.
Two Doctors from Mexican Clinic Plead Guilty in Scheme to Commit Wire FraudRead the Press Release
McALLEN, Texas ‐ Two physicians from a family medicine clinic in Mexico have been convicted of conspiracy to commit wire fraud 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 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. Both plea agreements were entered today before U.S. District Judge Micaela Alvarez.
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.
Judge Alvarez has set sentencing for Aug. 18 at 2:00 p.m., at which time both defendants face up to 20 years in federal prison and a possible $250,000 fine. They will remain in custody pending that hearing.
The FBI investigated. Assistant U.S. Attorneys Michael Day and Tina Ansari are prosecuting the case.
SDTX Employees Honored by Department of Justice at Executive Office for U.S. Attorneys Director’s Awards CeremonyRead the Press Release
WASHINGTON – Six current and one former employee of the U.S. Attorney’s Office for the Southern District of Texas (SDTX) were some of the 160 recipients recognized by Deputy Attorney General Sally Yates and Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson at the 32nd annual Director’s Awards Ceremony today in Washington D.C.
The SDTX was one of 33 districts represented at the ceremony which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building.
In her prepared remarks, Yates said, “The achievements being recognized today reflect the breadth of the department’s responsibilities, and some of our most significant challenges. From dismantling dangerous gangs, drug cartels and human trafficking operations to tackling political corruption, white collar crimes and international terrorism, these awardees have taken on our toughest cases. And the citizens of our country are safer because of their work.”
“We honor the truly talented and dedicated legal and administrative personnel in the 94 U.S. Attorneys’ offices and our law enforcement partners who everyday touch lives in our communities, protect the American people and work to ensure the fair and impartial administration of justice,” said Wilkinson.
“These awards demonstrate the significance of the matters we handle every day,” said U.S. Attorney Magidson. “The Assistant U.S. Attorneys (AUSAs) recognized today worked on complex and noteworthy cases, conducting themselves in a truly remarkable fashion that brought national honor to the work we do. They are a great credit to this district and to our community.”
Three employees received commendations for superior performance as a criminal Assistant U.S. Attorney (AUSA).
AUSA James H. Sturgis was recognized for the prosecution of members of the Panama Unit, an elite counter-drug task force in Hidalgo County. Instead of capturing drug dealers, the Panama Unit’s law enforcement officers stole from those dealers and selling the drugs for a profit. Sturgis ultimately obtained indictments against more than a dozen people, including the Hidalgo County Sheriff, his top commander and several deputies, local police officers, the local CrimeStoppers coordinator and others on drug, money laundering and conspiracy charges. The corrupt officers pleaded guilty and were sentenced to a combined total of 114 years in prison. Thanks to Sturgis’ diligence, the citizens of Hidalgo County and South Texas are reassured that no law enforcement officer is above the law, and that those who violate the laws, especially those in positions of public trust, will be prosecuted and punished.
AUSAs Martha A. Minnis and Katherine L. Haden were recognized for their successful criminal prosecution of a family-run fraud business. The Jariv family operated a telemarketing timeshare scheme out of Las Vegas, Chicago, Los Angeles and Houston. Using nearly a dozen company names, the Jariv family and their employees targeted nearly 1,000 timeshare owners, many retired and elderly, in a $13 million advance fee fraud which lasted from 2007 until 2012. The prosecution resulted in the conviction of seven defendants and the immediate restitution of $2.25 million for the victims.
Also honored today was AUSA Andrew A. Bobb for superior performance as a civil AUSA.
Bobb reached remarkable civil fraud settlements in eight separate matters, recovering nearly $115 million that had been defrauded from the nation’s taxpayers. Assembling and leading teams of investigators from various federal agencies, Bobb overcame determined opposition from physicians, hospitals, diagnostic testing facilities and corporations, and achieved unparalleled positive results in the fight against fraud. Through his outstanding professionalism, acumen and diligence, he achieved the largest short-stay settlement - $98.15 million - against a single health care provider in our nation’s history, as well as the largest settlement - $4.3 million - against a solo physician in the history of the SDTX. Bobb’s accomplishments are truly exceptional, distinguish him among his peers and reflect great credit upon himself and the Department of Justice.
Three others – AUSAs Renata A. Gowie and Lauretta D. Bahry and former AUSA Jason S. Varnado – were recognized for superior performance as appellate AUSAs.
They were honored for their outstanding efforts in United States v. Kuhrt, an appeal of a complex international investment fraud scheme perpetrated by Stanford Financial Group. Corporate officers Mark Kuhrt and Gilbert Lopez Jr. helped Robert Allen Stanford commit one of the largest investment fraud schemes in U.S. history. The scheme involved a certificate of deposit program at Antigua-based Stanford International Bank, Limited. The investment fraud occurred over decades and involved tens of thousands of victims from many countries and multi-billion dollar losses. The Fifth Circuit affirmed the wire fraud convictions and 20-year prison sentences for Kuhrt and Lopez in a published opinion.
EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.
BISD Employee Pleads Guilty to Theft of 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 admitted to stealing cash proceeds from concessions sales at four schools for nearly six years, announced U.S. Attorney Kenneth Magidson. Leticia Arreola, 38, of Los Fresnos, entered a guilty plea this morning a one-count criminal information to theft concerning programs receiving federal funds.
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.
Sentencing has been set for Aug. 31, 2016. At that time, she faces up to 10 years in federal prison and a possible $250,000 maximum fine. She was permitted to remain on bond pending that hearing.
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 are prosecuting the case.
Former Fugitive Convicted of Kidnapping and Alien Smuggling, Both Resulting in DeathRead the Press Release
A former fugitive who was illegally residing in Houston has entered a guilty plea today, admitting that he engaged in an alien smuggling conspiracy that resulted in two deaths and kidnapped two women, one of whom was killed.
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 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. U.S. District Judge John D. Rainey of the Southern District of Texas accepted the guilty plea and has set sentencing for Sept. 12, 2016. Aranda-Soto faces a mandatory term of life in federal prison.
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 victim who 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. Still a fugitive on the 2010 charges, Aranda-Soto admitted he returned to Houston in 2012 and began to hold aliens hostage in Houston-area stash houses. After law enforcement rescued a group of aliens being held hostage and arrested several of Aranda-Soto’s employees from one of the locations in October 2012, Aranda-Soto planned to escape from Houston with two female employees.
According to the plea agreement, while 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.
At the hearing today, the court heard that as the driver jumped from the moving car, she had apologized to the other woman. That victim then screamed in return “tell my children I love them.”
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. Trial Attorney Jeffrey Zick of the Criminal Division’s Capital Case Section and Assistant U.S. Attorneys Patti H. Booth and Casey N. MacDonald of the Southern District of Texas are prosecuting the case.
Former Fugitive Convicted of Kidnapping and Alien Smuggling, Both Resulting in DeathRead the Press Release
VICTORIA, Texas – A former fugitive who was illegally residing in Houston has entered a guilty plea today, admitting he engaged in an alien smuggling conspiracy that resulted in two deaths and kidnapped two women, one of whom was killed.
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 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. U.S. District Judge John D. Rainey accepted the guilty plea and has set sentencing for Sept. 12, 2016. Aranda-Soto faces a mandatory term of life in federal prison.
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. Still a fugitive on the 2010 charges, Aranda-Soto admitted he returned to Houston in 2012 and began to hold aliens hostage in Houston-area stash houses. After law enforcement rescued a group of aliens being held hostage and arrested several of Aranda-Soto’s employees from one of the locations in October 2012, Aranda-Soto planned to escape from Houston with two female employees.
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.
At the hearing today, the court heard that as the driver jumped from the moving car, she had apologized to the other woman. That victim then screamed in return “tell my children I love them.”
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 H. Booth and Casey N. MacDonald are prosecuting the case along with Trial Attorney Jeffrey Zick of the Criminal Division’s Capital Case Section.
Final Man Handed Significant Sentence in Robbery ConspiracyRead the Press Release
HOUSTON – The final member of a crew responsible for more than 30 armed robberies throughout Houston is now headed to federal prison for nearly 48 years, announced U.S. Attorney Kenneth Magidson. Rodney Ford, 19, of Houston, pleaded guilty Nov. 4, 2015, to conspiracy to interfere with commerce by robbery and two counts each of brandishing a firearm during and in relation to a crime of violence.
Today, U.S. District Judge David Hittner handed Ford 188 months for the robbery conspiracy in addition to 84 and 300 months for the first and second firearm charges which must be served consecutively to each other and to the underlying conspiracy. The total 572-month sentence will be immediately followed by five years of supervised release.
Earlier this month, Ford’s co-conspirators Jerrol Bluford, 22, Calvin Smith, 20, and Jamone Jones, 21, all of Houston, received sentences of 41-49 years in federal prison. Jones received 588 months, while Bluford and Smith were ordered to serve total sentences of 553 and 492 months, respectively.
Between Jan. 9, 2015, and Jan. 25, 2015, the four men committed approximately 31 armed robberies of a variety of establishments, including restaurants, stores and phone companies. Each robbery was a take-over style robbery during which a member of the robbery crew brandished a firearm and demanded money from employees at gunpoint, taking cash from the cash registers and safes through threat of force. On multiple occasions, the crew members sole merchandise such as cellular phones from the business and cash from the customers who were present during the robberies. Some of the robberies were even committed in the presence of children. In one instance, the robbery crew attempted to steal the store owner’s vehicle.
All of the defendants have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
These charges arose from an investigation conducted by the FBI Violent Crime Task Force, Harris County Sheriff’s Office Robbery Division and Houston Police Department North Robbery Division. Assistant U.S. Attorney Julie Searle is prosecuting the case.
Robstown Man Sent to Prison for Distributing Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – A 37-year-old Robstown man has been ordered to federal prison following his conviction of distribution of child pornography, announced U.S. Attorney Kenneth Magidson. Jorge Betancourt, of Robstown, pleaded guilty March 1, 2016.
Today, Senior U.S. District Judge Hayden Head took into consideration Betancourt’s statement in court that he understood how the peer-to-peer software worked and that he intended to distribute the material. Betancourt was handed a 180-month-sentence. He will also be ordered to register as a sex offender and will serve 15 years of supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet.
At the time of his plea, the court heard that the case began when a detective with the Corpus Christi Police Department was able to successfully download various files containing child pornography from an IP address that was associated with Betancourt. As a result, Homeland Security Investigations (HSI) was contacted to assist in the investigation.
In June 2015, authorities executed a search warrant at Betancourt’s residence, at which time they seized several digital devices. Forensic analysis on the digital devices revealed more than 530 videos and more than 540 images of child pornography. Betancourt admitted to using peer-to-peer software to download child pornography for approximately 11 years.
Betancourt was arrested on the federal charges in October 2015 and has been in custody since that time where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges against Betancourt are the result of an investigation conducted by the Corpus Christi Police Department-Internet Crimes Against Children Task Force with the assistance of Homeland Security Investigations.
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."
Robstown Man Sent to Prison for Distributing Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – A 37-year-old Robstown man has been ordered to federal prison following his conviction of distribution of child pornography, announced U.S. Attorney Kenneth Magidson. Jorge Betancourt, of Robstown, pleaded guilty March 1, 2016.
Today, Senior U.S. District Judge Hayden Head took into consideration Betancourt’s statement in court that he understood how the peer-to-peer software worked and that he intended to distribute the material. Betancourt was handed a 180-month-sentence. He will also be ordered to register as a sex offender and will serve 15 years of supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet.
At the time of his plea, the court heard that the case began when a detective with the Corpus Christi Police Department was able to successfully download various files containing child pornography from an IP address that was associated with Betancourt. As a result, Homeland Security Investigations (HSI) was contacted to assist in the investigation.
In June 2015, authorities executed a search warrant at Betancourt’s residence, at which time they seized several digital devices. Forensic analysis on the digital devices revealed more than 530 videos and more than 540 images of child pornography. Betancourt admitted to using peer-to-peer software to download child pornography for approximately 11 years.
Betancourt was arrested on the federal charges in October 2015 and has been in custody since that time where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges against Betancourt are the result of an investigation conducted by the Corpus Christi Police Department-Internet Crimes Against Children Task Force with the assistance of Homeland Security Investigations.
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."
Illegal Alien from Mexico Sentenced for Leading Alien Smuggling Ring Resulting in DeathRead the Press Release
CORPUS CHRISTI, Texas – A 24-year-old illegal alien from Mexico has been ordered to federal prison for transporting illegal aliens, announced U.S. Attorney Kenneth Magidson. Juan Diego Lozano-Salgado pleaded guilty March 2, 2016, to transporting undocumented aliens on Dec. 13, 2015.
Today, U.S. Senior District Judge Hayden Head sentenced Lozano-Salgado to 60 months in federal prison. Not a U.S. citizen, he is expected to face deportation proceedings following his release from prison.
Lozano-Salgado was responsible for coordinating the transportation of illegal aliens from the brush north of the Border Patrol checkpoints to Houston. His role included being a foot guide through the brush and coordinating the pick-up of the aliens by vehicle on Highway 281 near Falfurrias.
On the evening of Dec. 13, 2015, a group of aliens Lozano-Salgado guided entered a pick-up truck near Brooks County and travelled North on U.S. Highway 281. A total of 14 people including Lozano-Salgado were in the pick-up, both in the interior cab and in the bed. Law enforcement spotted the truck and attempted to conduct a traffic stop, at which time the truck sped off in an attempt to elude capture. Shortly thereafter, officers in the area responded to a vehicle accident where it was discovered that the truck had left the road and had hit a tree in a head-on collision. The driver and one passenger had been pronounced dead at the scene and several others were transported to area hospitals. Twelve additional subjects were later determined to be unlawfully present in the United States. The deceased passenger still remains unidentified.
Lozano-Salgado will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations conducted the investigation along with the Texas Department of Public Safety, U.S. Border Patrol and the Brooks County Sherriff’s Office. Assistant U.S. Attorney Brittany L. Jensen is prosecuting the case.
Illegal Alien from Mexico Sentenced for Leading Alien Smuggling Ring Resulting in DeathRead the Press Release
CORPUS CHRISTI, Texas – A 24-year-old illegal alien from Mexico has been ordered to federal prison for transporting illegal aliens, announced U.S. Attorney Kenneth Magidson. Juan Diego Lozano-Salgado pleaded guilty March 2, 2016, to transporting undocumented aliens on Dec. 13, 2015.
Today, U.S. Senior District Judge Hayden Head sentenced Lozano-Salgado to 60 months in federal prison. Not a U.S. citizen, he is expected to face deportation proceedings following his release from prison.
Lozano-Salgado was responsible for coordinating the transportation of illegal aliens from the brush north of the Border Patrol checkpoints to Houston. His role included being a foot guide through the brush and coordinating the pick-up of the aliens by vehicle on Highway 281 near Falfurrias.
On the evening of Dec. 13, 2015, a group of aliens Lozano-Salgado guided entered a pick-up truck near Brooks County and travelled North on U.S. Highway 281. A total of 14 people including Lozano-Salgado were in the pick-up, both in the interior cab and in the bed. Law enforcement spotted the truck and attempted to conduct a traffic stop, at which time the truck sped off in an attempt to elude capture. Shortly thereafter, officers in the area responded to a vehicle accident where it was discovered that the truck had left the road and had hit a tree in a head-on collision. The driver and one passenger had been pronounced dead at the scene and several others were transported to area hospitals. Twelve additional subjects were later determined to be unlawfully present in the United States. The deceased passenger still remains unidentified.
Lozano-Salgado will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations conducted the investigation along with the Texas Department of Public Safety, U.S. Border Patrol and the Brooks County Sherriff’s Office. Assistant U.S. Attorney Brittany L. Jensen is prosecuting the case.
Mexican National Pleads Guilty to Attempting to Provide Contraband to an InmateRead the Press Release
McALLEN, Texas – A 24-year-old Mexican National has entered a guilty plea to attempting to provide contraband to a federal inmate, announced U.S. Attorney Kenneth Magidson. Karen Yudith Reyes-Oliva pleaded guilty to a criminal complaint at a hearing today in federal court in McAllen before U.S. Magistrate Judge Peter E. Ormsby.
In April 2016, Reyes went to the East Hidalgo Detention Center in La Villa to visit her boyfriend, an inmate who was in the custody of the U.S. Marshals Service on federal narcotics charges. Upon walking through the metal detector, correctional officers discovered that Reyes had concealed a cellular phone and charger underneath her clothing.
Visitors are prohibited from bringing contraband, including cellular phones, into a correctional facility.
Sentencing has been set for June 9, 2016, at 3:00 p.m., at which time Reyes faces up to a year in federal prison and a possible $100,000 maximum fine. She has been in custody since her arrest where she will remain pending that hearing.
The U.S. Marshals Service initiated the investigation. Assistant U.S. Attorney Linda Requénez is prosecuting the case.
Local Man Arrested in $5 Million Investment ScamRead the Press Release
HOUSTON - A 75-year-old Houston man has been charged in a 10-count indictment alleging wire fraud and mail fraud in an investment fraud scheme involving more than 50 victims and $5 million, announced U.S. Attorney Kenneth Magidson.
Allan George Cooper was taken into custody this morning without incident and is set to make his initial appearance before U.S. Magistrate Judge Frances H. Stacy at 2:00 p.m. today.
A federal grand jury returned the indictment under seal May 18, 2016. The indictment, unsealed today upon Cooper's arrest, charges him with four counts of wire fraud and six counts of mail fraud.
According to the indictment, Cooper defrauded more than 50 investors since 2006 in an investment fraud scheme which took in at least $5 million of investor funds. His scheme involved convincing investors to invest their funds in his alleged investment programs via AG Cooper & Associates, according to the indictment. He allegedly offered investors a low-risk/high-return in investments such as short-term loans, gaming investments, interim construction loans and mortgage-backed notes.
The indictment alleges that on many occasions, investors would wire their funds from their personal account directly into Cooper's commercial banking account or would mail or hand deliver their investment checks to Cooper personally. Investors that were using their retirement funds would wire the funds via an intermediary, self-directed IRA custodian to Cooper's commercial bank account, according to the allegations.
Cooper allegedly prepared quarterly statements he mailed to the investors, making them believe their funds were being utilized in legitimate programs and were earning more than 11 percent in returns. The statements contained false and misleading representations concerning the value and performance of AG Cooper & Associates investment programs and returns, according to the indictment. Instead of investing the funds as promised, Cooper allegedly appropriated the money for his own use, including paying his personal expenses, paying employees, paying his credit card bills, paying other investors and transferring funds to other companies controlled by Cooper.
If convicted, he faces up to 20 years in federal prison and a possible $250,000 maximum fine on each charge.
The investigation was conducted by the FBI with assistance from the Texas State Securities Board. Assistant U.S. Attorney Suzanne Elmilady 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.Ambulance Company Owner and Brother Arrested in $6 Million Health Care Fraud ConspiracyRead the Press Release
HOUSTON - A 20-count federal indictment has been unsealed following the arrest of the owner of KMD Healthcare Services Inc., and his brother on charges they engaged in a conspiracy involving fraudulent Medicare and Medicaid billing for ambulance services, announced U.S. Attorney Kenneth Magidson.
Authorities arrested Melvin Davies, 28, and his brother Kevin Davies, 27, both of Houston today. They are expected to make their initial appearances before U.S. Magistrate Judge Frances H. Stacy tomorrow at 10:00 am.
The indictment alleges the defendants billed Medicare and Medicaid for ambulance services that were not medically necessary and not provided, as well as ambulance transport miles that were not provided. Melvin and Kevin Davies allegedly operated the ambulance business from their gated community townhouse and billed for ambulance services provided by vans and not ambulances. According to the indictment, Medicare and Medicaid were billed for services that were not documented on ambulance transport run sheets. The Davies brothers are also charged with spending more than $10,000 of criminally derived property.
If convicted of any of the charges, each defendant faces up to 10 years in federal prison and a possible $250,000 maximum fine.
The charges are the result of a joint investigation conducted by the FBI, IRS – Criminal Investigation and the Texas Attorney General’s Medicaid Fraud Control Unit. Assistant U.S. Attorney Julie Redlinger 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.Two Sent to Prison for Meth DistributionRead the Press Release
McALLEN, Texas – Two local men have been ordered to federal prison for their roles in a conspiracy to possess with intent to distribute methamphetamine, announced U.S. Attorney Kenneth Magidson. Guadalupe Trevino Jr., 43, and Guadalupe Trevino III, 24, both of Edinburg, pleaded guilty Aug. 28, 2015.
Today, U.S. District Judge Randy Crane handed Trevino Jr. a sentence of 48 months in federal prison, while Trevino III was ordered to serve 132 months.
A third defendant - Hiram Medina-Rodriguez, 51 of Pesqueria, Nuevo Leon, Mexico – was convicted by a jury Sept. 10, 2015. He will be sentenced June 3, 2016.
On Feb. 6, 2015, agents with the Drug Enforcement Administration (DEA) learned that a tractor containing a large quantity of methamphetamine was parked at a Chili’s restaurant in McAllen. Agent’s located the trailer and initiate surveillance. They son observed the driver - Medina-Rodriguez - acting in a suspicious manner. Authorities then approached him and obtained consent to search, at which time they found two air tanks containing approximately 60 kilograms of methamphetamine.
Upon further investigation, agents identified Trevino III who had arranged for the transportation of a large quantity of narcotics from the Rio Grande Valley to Dallas and Atlanta, Georgia. He installed two air tanks onto a tractor trailer which contained approximately 34.7 kilograms of methamphetamine.
Guadalupe Trevino Jr. admitted that his role in the conspiracy was to rent a warehouse to temporarily store the methamphetamine before it was delivered. He further admitted he knew the narcotics were concealed within the air and that it would be transported to another location.
The charges were the result of an investigation conducted by the Drug Enforcement Administration. Assistant U.S. Attorney Robert Wells Jr. prosecuted the case.
Pharr Resident Sentenced in Firearms CaseRead the Press Release
McALLEN, Texas – A 31-year-old Mexican citizen residing in Pharr has been ordered to federal prison following his convictions of possession of a firearm with an obliterated serial number and conspiring to export defense articles to Mexico without authorization, announced U.S. Attorney Kenneth Magidson. Jose Abraham Benavides-Cira pleaded guilty July 31, 2015.
Today, U.S. District Judge Randy Crane sentenced Benavides-Cira to 135 months in federal prison. Not a U.S. citizen, he is expected to face deportation proceedings following his release from prison.
From Dec. 10, 2014, through the March 17, 2015, indictment and even continuing to his arrest two days later, Benavides-Cira was involved in a conspiracy to illegally export 5.56 caliber rifles to Mexico along with his brother - Jose Luis Benavides-Cira, 33, of Edinburg, Oliver Bouzas-Delie, 32, of McAllen, and Ricardo Humberto Varela, 32, of Pharr.
During that time, Bouzas-Delie introduced an undercover agent acting as a weapons smuggler to the Benavides-Cira brothers who had negotiated and completed the purchase of a rifle. The agent continued negotiating directly with the brothers, resulting in the purchase of two more 5.56 caliber rifles that Valera had supplied. The serial numbers on those rifles had been obliterated.
Jose Abraham Benavides-Cira and his brother engaged in yet another sale at the time of their arrest on March 19, 2015.
Jose Luis Benavides-Cira and Varela were each previously sentenced to 46 months in prison, while Bouzas-Delie served a sentence of eight months based on his involvement with the sale of one rifle to an undercover agent.
The charges were the result of an investigation by Homeland Security Investigations and Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Joseph Leonard prosecuted the case.
Houston Man Convicted of Producing and Distributing Animal Crush VideosRead the Press Release
HOUSTON – A 54-year-old man from Houston has been convicted of creating and distributing videos depicting the torture and killing of puppies, chickens and kittens, announced United States Attorney Kenneth Magidson. Brent Justice was found guilty of three counts of producing and one count of distributing what is referred to as “animal crush videos” following a one-day bench trial. U.S. District Judge Sim Lake presided. Co-defendant Ashley Nicole Richards, 25, originally from Waco, but residing in Houston, entered a guilty plea Sept. 8, 2015.
People For the Ethical Treatment of Animals (PETA) defines the “crush” fetish as a cruel and illegal genre of pornography in which women are videotaped or photographed mutilating small animals for the sexual gratification of viewers. In crush fetish materials, women are depicted, usually barefoot or in high heels, stepping on (or crushing), torturing and killing different species of animals, ranging from crawfish, crabs and insects to rodents, rabbits, kittens, puppies, cats, dogs and other mammals.
Under federal law, it is illegal to depict - via photograph, motion-picture film, video, digital recording or electronic image - actual conduct in which one or more living non-human mammals, birds, reptiles or amphibians is intentionally crushed, burned, drowned, suffocated, impaled or otherwise subjected to serious bodily injury, and is obscene.
These were believed to be the first individuals indicted on these offenses since the statute was amended in 2010.
Richards and Justice created and distributed videos that involve puppies, chickens and kittens being tortured and killed. The videos are titled “puppy1,” “puppy 2,” “whitechick1,” “whitechick2,” “whitechick3,” “blackluvsample,” “adammeetseve” and “adammeetseve2” and were created at varying times between February 2010 and August 2012. In the “puppy2” video, which is more than 13 minutes in length, Richards is seen torturing and killing a blue Pit Bull-mix puppy in a kitchen. The defenseless dog’s mouth is closed with duct tape and he struggles as Richards strikes the dog numerous times with a meat cleaver. In the video, Richards chops off one of the puppy’s paws, then hacks at his head and neck. Richards is later seen severing the dog’s head and urinating on its body. In another video, described in court, Richards steps on a cat’s eye with heel of her shoe.Previous court records also indicated that during the videos, Richards is often scantily clad and wearing a Mardi Gras-type mask. As she tortured the animals, she engaged in sexually charged dialogue meant to arouse the viewer.
The government contended that Justice was the cameraman in all of the videos in all the videos he was charged with producing. Richards testified during the bench trial today that Justice introduced her to “crush” and that he was the person behind the marketing and distribution of the videos.
Authorities were alerted to the videos following an inquiry from PETA.
Richards was originally arrested on state charges on Aug. 15, 2012. A federal grand jury returned an indictment Nov. 28, 2012, and she was transferred to federal custody. However, the crush video charges were later dismissed on what the court cited as constitutionality issues. The government appealed that decision to the 5th Circuit Court of Appeals in New Orleans which subsequently overturned the decision of the District Court. The defense then filed a petition for a writ of certiorari to the U.S. Supreme Court challenging the 5th Circuit’s ruling. The U.S. Supreme Court denied that petition and remanded the case back to the District Court for prosecution.
Today, Judge Lake found Justice guilty of the three counts of producing and one count of distribution of the animal crush videos which were obscene in nature and set sentencing for Aug. 18, 2016. At that time, Justice faces up to seven years in federal prison on each count of conviction as well as possible $250,000 fine.
Justice was also found guilty after a bench trial in state court stemming from similar conduct in February 2016 and sentenced to 50 years. Richards also pleaded guilty to three charges in state court stemming from the same conduct and was sentenced to 10 years in prison.
The Houston Police Department originally investigated the matter and worked in conjunction with the Houston Office of the FBI. Assistant U.S. Attorney Sherri L. Zack prosecuted the case, while trial attorney John Pellettieri of the Department of Justice’s Criminal Division handled the appeal.Former VP Sentenced for Embezzling from Houston Police Federal Credit UnionRead the Press Release
HOUSTON – A 66-year-old former ex-vice president of the Houston Police Federal Credit Union has been ordered to federal prison for embezzlement that occurred for approximately 18 years, announced U.S. Attorney Kenneth Magidson. Cheryl Vickers was charged in a criminal information that was filed Dec. 7, 2015. She pleaded guilty Jan. 20, 2016.
Today, U.S. District Judge Melinda Harmon ordered Vickers to serve 41 months in prison and to pay $1,247,785 in restitution to the Houston Police Federal Credit Union. Prior to today’s sentencing, Vickers made a lump sum payment of $949,148 into the registry of the court to be applied toward the restitution owed.
At the time of her plea, she admitted that between January 1997 and February 2015 she embezzled at least $1,247,785 from the Houston Police Federal Credit Union while employed there as vice-president of accounting.
The embezzlement was ultimately discovered following her retirement in February 2015. At that time, a credit union customer brought in a “stale” check to have it re-issued. A “stale” check is an old check that has been issued by the credit union but never cashed. When credit union records showed that Vickers had already reissued the stale check, the credit union conducted an audit of Vickers’ banking activity.
The audit revealed that from January 1997 until her retirement, Vickers had embezzled at least $1,247,785 by various means, including, but not limited to, re-issuing stale checks. The credit union maintained a ledger of its stale checks which showed that Vickers reissued stale checks to credit card companies to pay her personal credit card bills. This included a Feb. 4, 2015, reissued stale check in the amount of $7,800 to pay her Chase Bank credit card bill. Some of the reissued checks even had her credit card number hand-written on them.
Vickers admitted that while employed at the Houston Police Federal Credit Union, she took credit union money without authorization or permission.
She was permitted to remain on bond pending her surrender to federal prison.
The charges are the result of an investigation conducted by FBI with assistance from the Federal Deposit Insurance Corporation – Office of Inspector General. Assistant U.S. Attorney Belinda Beek is prosecuting the case.
Law Enforcement Officials Among 15 Charged in Drug Trafficking ConspiracyRead the Press Release
HOUSTON – A grand jury sitting in Houston has returned an 11-count indictment against several individuals to include current or former law enforcement officers, in a cocaine trafficking conspiracy, announced U.S. Attorney Kenneth Magidson.
U.S. Border Patrol Agent Daniel Polanco, 34, and Edinburg Police Officer Hector Beltran, 40, both of Edinburg, surrendered to federal authorities today. Former Houston Police Officer Marcos Esteban Carrion, 38, of Sugar Land, was already in custody on unrelated charges and is expected to make an initial appearance in the near future. A summons has also been issued for former Precinct 7 Deputy Constable Juan Ignacio Leal, 36, of Houston, who is expected to appear in Houston federal court May 31.
Also charged are Noe Arnoldo Moczygemba, 42, and Carlos Aaron Oyervides, 41, both of Houston; Angel Alberto Lopez-Rodriguez, 42, a Mexican national residing in Mission; Dimas DeLeon-Rios, 41, a Mexican national of Edinburg; Carmen Meyer, 60, and Maritssa Salinas, 38, both of Mission; Mario Alejandro Solis, 37, a Mexican national residing in San Juan; Martin Peña, 59, a citizen of the Dominican Republic residing in Houston; Ruben Angel Nava-Perez, 29, a Mexican national residing in Katy; and Francisco Arizmendiz-Lugo, 51, and Jesus Alejandro Martinez-Lopez, 37, both of Reynosa, Tamaulipas, Mexico.
Lopez-Rodriguez, DeLeon-Rios, Oyervides, Meyer, Solis, Peña and Nava-Perez are currently in custody and set to make an appearance May 31, 2016, before U.S. Magistrate Judge Dena Palermo in Houston. Moczygemba and Salinas are also expected to be in custody in the near future.
Arizmendiz-Lugo and Martinez-Lopez are considered fugitives and warrants remain outstanding for their arrests. Anyone with information about their whereabouts are asked to contact DEA at 713-693-3000.
The superseding indictment, returned May 18, 2016, charges all 15 with conspiracy to possess with intent to distribute more than five kilograms of cocaine. Each defendant also faces varying numbers of charges of possession with intent to distribute cocaine. Lopez-Rodriguez is charged with one count of possession with the intent to distribute methamphetamine.
Each defendant faces a minimum of 10 years and up to life in federal prison as well as a possible $10 million fine on each count of conviction.
The four-year Organized Crime Drug Task Force Investigation dubbed Operation Blue Shame was investigated by the Drug Enforcement Administration, Homeland Security Investigations and Internal Revenue Service – Criminal Investigations. 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.
Texas Authorities Make Multiple Arrests and Warn Public of Dangers of Synthetic NarcoticsRead the Press Release
A total of 16 people have been charged following a multi-year, multi-agency federal investigation into one of the largest synthetic cannabinoid trafficking enterprises in the country.
U.S. Attorney Kenneth Magidson for the Southern District of Texas made the announcement today along with Special Agent in Charge Joseph Arabit of the Drug Enforcement Administration (DEA), Acting Chief Martha Montalvo of the Houston Police Department (HPD) as well as leaders and representatives from numerous other federal, state and local law enforcement agencies.
“Today, a major criminal organization that dealt in the large-scale manufacturing and distributing of synthetic cannabinoids was dismantled,” said U.S. Attorney Magidson. “The unsealed indictment and related arrests are the results of a significant federal, state and local effort that was international in scope. These drugs are extremely dangerous and are emerging into a serious public health threat in both our area and the nation as a whole.”
A federal grand jury returned a 13-count federal indictment April 28, alleging a conspiracy to possess with the intent to distribute a controlled substance, aiding and abetting possession with the intent to distribute a controlled substance, aiding and abetting the smuggling of goods into the U.S., conspiracy to commit money laundering, aiding and abetting a money transmitting business and conspiracy to commit mail fraud. With the exception of aiding and abetting a money transmitting business, which carries a possible five-year-prison term, the penalty on any of the other charges is up to 20 years in federal prison.
“The arrests made today as part of Operation ‘We Can Hear You Now’ conclude a comprehensive investigation by DEA, Houston Police Department and its law enforcement partners into the leadership structure and criminal activities of an international drug trafficking organization,” said Special Agent in Charge Arabit. “This operation highlights an intentional and deliberate effort to cut off and shut down the supply of synthetic cannabinoids trafficked by callous dealers and the corresponding negative impact that this horrific drug inflicts on our communities.”
“This is great example of the Houston Police Department's partnership and collaboration with law enforcement partners in the effort to take dangerous substances off the streets,” said Acting Chief Montalvo. “Synthetic cannabinoids have been a major issue in our city and this was a major step in getting this illegal substance off our streets.”
The indictment alleges several co-conspirators devised a scheme to defraud by marketing their products as though they were safe. Some of the products were allegedly labeled as “potpourri” or “incense,” with some including false information such as “100% legal,” “lab certified” or “not for human consumption.” According to the charges, these products were, in fact, dangerous drugs. Specifically, they were synthetic cannabinoids that were manufactured and sold for human consumption. The substances allegedly contained hazardous chemicals that, when smoked or ingested, could cause serious bodily harm.
The indictment indicates the drugs in question were all schedule I drugs – substances or chemicals with no currently accepted medical use, have a high potential for abuse, are the most dangerous drugs of all scheduled drugs and have potential for severe psychological or physical dependence.
As part of the announcement today, authorities provided detailed information to warn of the dangers of this emerging public health threat. The effects of these drugs were described as unpredictable, with wide-ranging physiological effects to include possible kidney damage and gastrointestinal distress to possible seizures and even psychosis. Leaders also described how these are made and the unsafe and often dirty environments in which they are created, to include inconsistent batches blended in cement mixers and similar equipment. According to the information provided, this can result in “hot spots” in which one sample could have a significantly greater amount of harmful chemical than another.
Authorities also detailed the marketing of these drugs, citing the colorful packaging that targets only drug abusers, but also children and adolescents.
The law enforcement effort today resulted in the arrest of 12 people in the Houston area - Salem Fahed Tannous, 55, Omar Maher Alnasser, 36, Ali Shaker Tafesh, 35, Khalil Munier Khalil, 40, Nagy Mahmoud Ali, 59, Mohammed Rafat Taha, 27, and Steve Shafiq Amira, 58, all of Houston; Muhammad Shariq Siddiqi, 45, Ayisha Khurram, 40, and Sayed Ali, 41, all of Sugar Land; Abdalnour Izz, 31, of Missouri City; and Hazim Hisham Qadus, 31, of South Houston.
Khader Fahed Tanous, 49, of Stephens City, Virginia, and Frank Muratalla, 23, of Hawthorne, California, are also charged.
Authorities are still seeking Ziad Mahmoud Alsalameh, 56, of Pearland, Texas, and Aqil Khader, 33, of Houston. They are considered fugitives and warrants remain outstanding for their arrests. Anyone with information about their whereabouts are asked to contact DEA at 713-693-3000.
The indictment includes a notice of forfeiture and seeks $35 million money judgment as alleged illegal proceeds from the crimes.
The charges are the result of a four-year investigation conducted by the DEA, HPD, Bureau of Alcohol, Tobacco, Firearms and Explosives and Internal Revenue Service – Criminal Investigation with the assistance of the U.S. Postal Inspection Service, Conroe Police Department, sheriff’s offices in Harris and Polk counties, Texas Alcoholic Beverage Commission and the Montgomery County District Attorney’s Office. Assistant U.S. Attorneys John Jocher and Nancy Herrera are prosecuting the case.
Texas Authorities Make Multiple Arrests and Warn Public of Dangers of Synthetic NarcoticsRead the Press Release
HOUSTON - A total of 16 people have been charged following a multi-year, multi-agency federal investigation into one of the largest synthetic cannabinoid trafficking enterprises in the country.
U.S. Attorney Kenneth Magidson made the announcement at a press conference in Houston today along with Special Agent in Charge Joseph M. Arabit of the Drug Enforcement Administration (DEA), Acting Chief Martha Montalvo of the Houston Police Department (HPD) as well as leaders and representatives from numerous other federal, state and local law enforcement agencies.
“Today, a major criminal organization that dealt in the large-scale manufacturing and distributing of synthetic cannabinoids was dismantled,” said Magidson. “The unsealed indictment and related arrests are the results of a significant federal, state and local effort that was international in scope. These drugs are extremely dangerous and are emerging into a serious public health threat in both our area and the nation as a whole.”
A federal grand jury returned a 13-count federal indictment April 28, 2016, alleging a conspiracy to possess with the intent to distribute a controlled substance, aiding and abetting possession with the intent to distribute a controlled substance, aiding and abetting the smuggling of goods into the U.S., conspiracy to commit money laundering, aiding and abetting a money transmitting business and conspiracy to commit mail fraud. With the exception of aiding and abetting a money transmitting business, which carries a possible five-year-prison term, the penalty on any of the other charges is up to 20 years in federal prison.
“The arrests made today as part of Operation ‘We Can Hear You Now’ conclude a comprehensive investigation by DEA, Houston Police Department and its law enforcement partners into the leadership structure and criminal activities of an international drug trafficking organization,” said Arabit. “This operation highlights an intentional and deliberate effort to cut off and shut down the supply of synthetic cannabinoids trafficked by callous dealers and the corresponding negative impact that this horrific drug inflicts on our communities.”
“This is great example of the Houston Police Department's partnership and collaboration with law enforcement partners in the effort to take dangerous substances off the streets,” said Acting Chief Martha Montalvo of the Houston Police Department. “Synthetic cannabinoids have been a major issue in our city and this was a major step in getting this illegal substance off our streets.”
The indictment alleges several co-conspirators devised a scheme to defraud by marketing their products as though they were safe. Some of the products were allegedly labeled as “potpourri” or “incense,” with some including false information such as “100% legal,” “lab certified” or “not for human consumption.” According to the charges, these products were, in fact, dangerous drugs. Specifically, synthetic cannabinoids that were manufactured and sold for human consumption. The substances allegedly contained hazardous chemicals that, when smoked or ingested, could cause serious bodily harm.
The indictment indicates the drugs in question were all schedule I drugs – substances or chemicals with no currently accepted medical use, have a high potential for abuse, are the most dangerous drugs of all scheduled drugs and have potential for severe psychological or physical dependence.
As part of the announcement today, authorities provided detailed information to warn of the dangers of this emerging public health threat. The effects of these drugs were described as unpredictable, with wide-ranging physiological effects to include possible kidney damage and gastrointestinal distress to possible seizures and even psychosis. Leaders also described how these are made and the unsafe and often dirty environments in which they are created, to include inconsistent batches blended in cement mixers and similar equipment. According to the information provided, this can result in “hot spots” in which one sample could have a significantly greater amount of harmful chemical than another.
Authorities also detailed the marketing of these drugs, citing the colorful packaging that targets only drug abusers, but also children and adolescents.
The law enforcement effort today resulted in the arrest of 12 people in the Houston area - Salem Fahed Tannous, 55, Omar Maher Alnasser, 36, Ali Shaker Tafesh, 35, Khalil Munier Khalil, 40, Nagy Mahmoud Ali, 59, Mohammed Rafat Taha, 27, and Steve Shafiq Amira, 58, all of Houston; Muhammad Shariq Siddiqi, 45, Ayisha Khurram, 40, and Sayed Ali, 41, all of Sugar Land; Abdalnour Izz, 31, of Missouri City; and Hazim Hisham Qadus, 31, of South Houston.
Khader Fahed Tanous, 49, of Stephens City, Virginia, and Frank Muratalla, 23, of Hawthorne, California, are also charged.
Authorities are still seeking Ziad Mahmoud Alsalameh, 56, of Pearland, and Aqil Khader, 33, of Houston. They are considered fugitives and warrants remain outstanding for their arrests. Anyone with information about their whereabouts are asked to contact DEA at 713-693-3000.
The indictment includes a notice of forfeiture and seeks $35 million money judgment as alleged illegal proceeds from the crimes.
The charges are the result of a four-year investigation conducted by the DEA, HPD, Bureau of Alcohol, Tobacco, Firearms and Explosives and Internal Revenue Service – Criminal Investigation with the assistance of the U.S. Postal Inspection Service, Conroe Police Department, sheriff’s offices in Harris and Polk counties, Texas Alcoholic Beverage Commission and the Montgomery County District Attorney’s Office. Assistant U.S. Attorneys John Jocher and Nancy Herrera are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.###
Houston Man Indicted for Sending Threatening Email to Texas Attorney General’s OfficeRead the Press Release
HOUSTON – A federal grand jury in Houston has returned a one-count indictment against Syed Kaleem Razvi for sending a threatening email to the Texas Attorney General’s Office and various employees with other state agencies, announced U.S. Attorney Kenneth Magidson.
Razvi, 55, of Houston, is charged with sending a threat over interstate commerce. Specifically, Razvi allegedly sent an email communication on June 8, 2015, to the Texas Attorney General’s Office, Child Support Division, as well as various employees with other Texas agencies. The indictment alleges that the subject line of the email said “Tell Atty General of Texas this.” The communications allegedly threatened the Attorney General of Texas, as well as all those emailed by threatening “to get up in arms against you all,” and by wishing “God burn your houses and burn the bodies of your own children and yourself.” The email also demanded that the Attorney General of Texas return his money or “FACE TERRORISM,” according to the allegations.
If convicted, Razvi faces up to five years in federal prison. Razvi has been in state custody on related charges since December 2015. He is expected to make an initial appearance on the federal indictment in the near future, at which time the U.S. expects to request his continued detention pending trial.
The FBI investigated in conjunction with the Texas Attorney General’s Office - Criminal Investigations Division. Assistant U.S. Attorneys Ted Imperato and Alamdar Hamdani are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Corpus Man Indicted in Undercover Firearms and Meth OperationRead the Press Release
CORPUS CHRISTI, Texas – A federal grand jury has returned an indictment today charging a local man with possession with the intent to distribute methamphetamine and making a false statement on a firearms purchasing form, announced U.S. Attorney Kenneth Magidson along with Special Agent in Charge Robert Elder of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Authorities had charged Kevin Joseph Pacacha, 53, of Corpus Christi, on April 14, 2016, following his arrest the day prior. He appeared in federal court April 19, 2016, at which time the court heard that law enforcement had been investigating Pacacha since 2013. Law enforcement believed he had been dealing firearms without a license. Agents met with Pacacha to notify him that he needed to obtain a federal firearms license if he wished to deal in firearms.
The government also detailed the undercover investigation that commenced following the arrest of a firearms trafficker in Brownsville in 2015. According to testimony presented in court, the undercover ATF agent allegedly made five separate purchases involving 13 firearms from Pacacha. At the time of the final sale, Pacacha also allegedly requested to purchase a large quantity of methamphetamine. According to court records, the undercover agent and Pacacha ultimately agreed to a deal in which Pacacha would provide four DPMS rifles and one LWRC rifle to the undercover officer in exchange for a half pound of crystal methamphetamine and $2,000 in cash. Following the exchange, agents arrested Pacacha.
“The tenacity and courage of the undercover agent in pursuing a suspect who seemed to have no regard for the ultimate destination of these guns highlights exemplary actions by ATF's finest,” said Elder.
If convicted of the methamphetamine charge, Pacacha faces a minimum of 10 years and up to life in federal prison as well as a possible $10 million fine. The firearms charge carries and additional five-year-maximum sentence, upon conviction.
ATF investigated the case along with Texas Department of Public Safety, Corpus Christi Police Department Gang Unit, Border Patrol and the U.S. Marshals Service.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Local Teacher Arrested on Child Pornography ChargesRead the Press Release
HOUSTON – A 50-year-old Houston man has been charged with distribution, receipt and possession of child pornography, announced U.S. Attorney Kenneth Magidson.
Authorities arrested Jason Dion Johnson Friday, May 6, 2016. He made his initial appearance yesterday, at which time he was ordered into custody pending a detention hearing which is set for tomorrow at 10:00 a.m. before U.S. Magistrate Judge Mary Milloy.
At the time of the investigation, Johnson was employed as a 7th grade Social Studies teacher at Beechnut Academy in Houston, according to the charges.
The investigation began Dec. 6, 2015, as the FBI sought to identify persons using peer-to-peer software to traffic in child pornography, according to the criminal complaint filed in the case. According to the charges, authorities soon discovered a specific computer as offering to participate in the distribution of child pornography movies. Johnson was allegedly identified as the person linked to that computer.
Law enforcement executed a search warrant May 6, 2016, at Johnson’s Houston residence, at which time the criminal complaint alleges investigators found a number of videos and images of prepubescent girls being sexually exploited. Additionally, agents allegedly found several unmarked VHS tapes which revealed the presence of what appeared to be a hidden camera video from a changing area within a school. On these tapes, there are young female students who are observed to be entering the camera’s field of view and removing their clothing while in the process of changing into a uniform, according to the complaint.
Authorities do not believe the footage was taken at Beechnut Academy.
If convicted, Johnson faces a minimum of five and up to 20 years imprisonment for the distribution and receipt as well as another 10 years for the possession of child pornography charges.
FBI investigated.
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."
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.###
Three Men Handed Significant Sentences in Robbery ConspiracyRead the Press Release
HOUSTON – Three area men are now headed to federal prison for 41-49 years following their convictions and participation in a robbery crew that committed more than 30 different armed robberies throughout Houston, announced U.S. Attorney Kenneth Magidson. Jerrol Bluford, 22, entered his guilty plea Nov. 23, 2015, while co-conspirators Calvin Smith, 20, and Jamone Jones, 21, had previously entered guilty pleas Aug. 28 and Oct. 26, 2015, respectively, to conspiracy to interfere with commerce by robbery and two counts each of brandishing a firearm during and in relation to a crime of violence. Today, U.S. District Judge David Hittner handed Jones a total sentence of 588 months in federal prison – 240 months for the robbery conspiracy in addition to 48 and 300 months for the first and second firearms charges which must be served consecutively to each other and to the underlying conspiracy. Bluford received 169 months for the conspiracy as well as consecutive sentences of 84 and 300 months for the firearms charges for a total of 553 months, while the court handed Smith a total sentence of 492 months – 168 months for the conspiracy and another 24 and 300 months for the firearms charges, respectively. All were also ordered to pay restitution and must serve a term of five years of supervised release following completion of the prison term. A fourth defendant - Rodney Ford, 19 – pleaded guilty Nov. 4, 2015, and will be sentenced later this month. Between Jan. 9, 2015, and Jan. 25, 2015, the four men committed approximately 31 armed robberies of a variety of establishments, including restaurants, stores and phone companies. Each robbery was a take-over style robbery during which a member of the robbery crew brandished a firearm and demanded money from employees at gunpoint, taking cash from the cash registers and safes through threat of force. On multiple occasions, the crew members sole merchandise such as cellular phones from the business and cash from the customers who were present during the robberies. Some of the robberies were even committed in the presence of children. In one instance, the robbery crew attempted to steal the store owner’s vehicle. All of the defendants have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. These charges arose from an investigation conducted by the FBI Violent Crime Task Force, Harris County Sheriff’s Office Robbery Division and Houston Police Department North Robbery Division. Assistant U.S. Attorney Julie Searle is prosecuting the case.Tango Blast Gang Member Sentenced in Two Federal CasesRead the Press Release
VICTORIA, Texas – A 31-year-old Tango Blast gang member has been ordered to federal prison for 15 years following his convictions in two separate indictments, announced U.S. Attorney Kenneth Magidson. William Chance Wallace, of Victoria, pleaded guilty Feb. 10, 2016, to witness retaliation and being a felon in possession of a firearm and ammunition.
At a hearing before U.S. District Judge John D. Rainey in Victoria yesterday, Wallce received a sentence of 180 months in federal prison on both convictions to be served concurrently. The 15-year-sentence will be followed by three years of supervised release.
On May 12, 2015, law enforcement executed an arrest warrant for a state parole violation, at which time they found ammunition in Wallace’s pocket as well as a weapon he had tossed away from his body. They also found the holster for the weapon in his vehicle. Wallace is a five-time convicted felon – three for drug-related crimes as well as two convictions for aggravated assault with deadly weapon. As such, Wallace is prohibited from possession firearms or ammunition.
During the investigation and while he was in custody, Wallace ordered an associate to post a picture of a criminal complaint with the name of a witness in a different investigation. Additionally, Wallace had the individual write a comment on the post calling the witness a snitch. As a result of the Facebook post, there were a number of threats of violence made against the witness.
Wallace remains in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Texas Department of Public Safety. Assistant U.S. Attorney Patti Booth prosecuted the cases.
Prison Guard Convicted of Having Sex with InmateRead the Press Release
HOUSTON - A former prison guard at the Federal Detention Center in Houston has entered a guilty pleato one count of sexual abuse of a ward, announced U.S. Attorney Kenneth Magidson.
Samuel Hawkins, 51, of Houston, was charged by criminal information with engaging in a sexual relationship with an inmate while he was employed as a correctional officer. On or about Nov. 15, 2015, Hawkins did knowingly engage in a sexual act with an inmate who was officially detained at the Federal Detention Center.
U.S. District Judge Sim Lake accepted the plea today and has set sentencing for July 27, 2016. At that time, he faces up to 15 years in federal prison and a possible $250,000 fine. He was permitted to remain on bond pending that hearing.
The charges are the result of an investigation conducted by the Department of Justice - Office of Inspector General. Assistant U.S. Attorneys Andrew Leuchtmann and Ruben R. Perez are prosecuting the case.
Jury Convicts Bank RobberRead the Press Release
HOUSTON – A federal jury sitting in Houston has convicted a 48-year-old Houston man for the robbery of two local banks and the attempted robbery of another as well as another charge of escape, announced U.S. Attorney Kenneth Magidson. The jury deliberated for approximately five hours before convicting Henry Lee London Jr. on all counts as charged following a three-day-trial.
During the trial, the jury heard that London escaped from the Leidel Sanction Center on Commerce Street in Houston on March 20, 2014, where he was serving the remainder of a federal sentence. He was wearing a plain blue baseball hat, black shirt, a tan backpack and shoes. Shortly thereafter, a man wearing the same clothing robbed the BBVA Compass bank on 43rd Street in Houston. The robber handed a teller a demand note that read “This is a robbery give large bills.”
Four days later, a man wearing the same clothing and plain blue baseball hat attempted to rob an IBC bank on Katy Freeway in Houston. He was unsuccessful. The teller testified that she was trying to get the money but the robber became frustrated and left. Less than an hour later, the same man wearing the same clothes and plain blue baseball hat robbed the Comerica Bank on Highway 6 South in Houston.
The jury saw videos and photos from each of the robberies and heard testimony from 10 witnesses. Three of the witnesses knew London well from his personal life and were able to identify him in all of the robberies.
London’s defense did not dispute the fact that he escaped from the halfway house. They also did not dispute that the banks were robbed, but contended London was not the robber. The jury was not convinced and found him guilty on all counts.
U.S. District Judge Melinda Harmon presided over the trial and has set sentencing for Aug. 12, 2016. At that time, London faces up to 20 years in federal prison on each of the bank robbery and attempted bank robbery convictions. He also faces another five years of imprisonment for the escape. London will remain in custody pending that hearing.
The FBI Bank Robbery Task Force which included the U.S. Marshals Service, sheriff’s offices in Harris and Fort Bend Counties and the Houston Police Department conducted the investigation. Assistant U.S. Attorneys Jennie Basile and Jill Stotts are prosecuting the case.