Southern District of Texas
Press releases recorded for this federal judicial district.
“Santa Claus” Convicted of Distributing Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – A 38-year-old Corpus Christi man who worked as a Santa Claus impersonator has pleaded guilty to distribution of child pornography, announced U.S. Attorney Kenneth Magidson. Reynaldo Ramirez was arrested on a criminal complaint Dec. 24, 2015.
The court heard today 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 Ramirez. As a result, Homeland Security Investigations was contacted to assist in the investigation (HSI).
In December 2015, authorities executed a search warrant at Ramirez’s residence, at which time they seized several digital devices. At the time of the search, authorities located a Santa Claus costume in Ramirez’s residence. When questioned about the outfit, Ramirez stated he had performed as Santa Claus for the past 15 years throughout the South Texas area.
Ramirez admitted that he had been viewing child pornography for approximately six years. He told authorities he had downloaded more than 1,000 images of child pornography ranging in ages from toddlers to pre-teens. Ramirez also admitted to sexually assaulting a four-year-old child.
U.S. District Judge Nelva Gonzales Ramos accepted the guilty plea today and set sentencing for Aug. 10, 2016. At that time, Ramirez faces a minimum of five and up to 20 years in federal prison and a possible $250,000 maximum fine. Upon completion of any prison term imposed, Ramirez 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.
Ramirez has been in custody since his arrest where he will remain pending his sentencing.
The charges against Ramirez are the result of an investigation conducted by the Corpus Christi Police Department-Internet Crimes Against Children Task Force with the assistance of HSI.
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."
Another Ordered to Prison in Large Drug and Money Laundering ConspiracyRead the Press Release
LAREDO, Texas – A third defendant 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. A federal jury convicted Baltazar Ibarra Cardona, 55, of Nuevo Laredo, Nov. 3, 2015, following three days of trial.
Today, U.S. District Judge Marina Garcia Marmolejo ordered he serve a total of 120 months in prison to be followed by five years of supervised release.
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.
Cardona was one of several truck drivers used by the organization to transport marijuana from Laredo to Dallas. He was a commercial truck driver willing to transport drug loads for $15,000. Cardona would pick up trailers loaded with the marijuana left at a warehouse provided by co-defendant Rafael Ortega. On a weekend in October 2011, the organization loaded four large crates with marijuana and placed them onto a trailer at a local warehouse. On Oct. 10, 2011, Cardona drove a tractor to the warehouse and picked up the marijuana-loaded trailer to transport to Dallas, taking a longer route via Highway 83 to circumvent the IH-35 checkpoint in the hopes of evading law enforcement. However, a Zavala County deputy stopped him between Carrizo Springs and Uvalde with an expired driver’s license as well as expired insurance on the tractor. He also had a false bill of Lading showing that his cargo was destined to a hardware store in Abeline. A search of the tractor trailer revealed he was transporting 1,858 kilograms of marijuana. Evidence established that this had been Cardona’s third trip for the organization.
Ortega aka Tio, 57, of Laredo, was also convicted at trial and ordered to serve 120 months in federal prison. Erika Alavarez, Trejo-Nava’s niece, pleaded guilty for being a money courier and received 48 months in prison.
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, Mexico; 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. Five others - Juan Manuel Vargas Aguilar, 46, Mario Albert Rodriguez, 30, and Ricardo Ramirez, 34, all 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 to launder drug proceeds.
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.
Weslaco Woman Indicted for Making False Allegations Against a Federal AgentRead the Press Release
HOUSTON – A Weslaco woman has been arrested for falsely accusing a Drug Enforcement Administration (DEA) agent of taking bribes, announced U.S. Attorney Kenneth Magidson.
Candida Marroquin-Mobley, 41, of Weslaco, was taken into custody today. She is expected to make her initial appearance before a U.S. magistrate judge in McAllen on Monday, May 2.
The indictment, returned April 27, 2016, alleges she made materially false statements to a federal agent. She allegedly stated that she was aware of a DEA agent who was “on the take” and receiving bribes. Marroquin-Mobley knew both that the statements were false and that the special agent in question had not received bribes, according to the allegations.
If convicted, she faces up to five years in federal prison and a possible $250,000 fine.
The Department of Justice - Office of the Inspector General investigated. Assistant U.S. Attorneys Ted Imperato and Sam Brown IV 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.
Two Head to Prison for Committing Murder on Federal LandRead the Press Release
HOUSTON – Two men have been sentenced to federal prison for 35 years after admitting they murdered a teenager in the Sam Houston National Forest in 2013, announced U.S. Attorney Kenneth Magidson. Cristian Alexander Zamora aka Christian Zamora, Alexander, Alex or Pollo and Ricardo Leonel Campos Lara aka La Muerte entered pleas of guilty April 17, 2015, to aiding and abetting each other and others with the murder of a 16-year-old male victim on Sept. 22, 2013.
Today, U.S. District Judge Ewing Werlein handed both Zamora and Lara 420-month sentences, each followed by five years of supervised release. They were further ordered to pay $13,092.42 in restitution. In handing down the sentence, Judge Werlein noted the “willful and deliberate crime.” He commented that the murder was particularly brutal and noted its the heinous, gruesome and savage nature.
Zamora, 24 and Lara, 20, both of El Salvador and resided in Huntsville and Houston, respectively, admitted they took part in the murder by striking the male victim with a baseball bat and a machete multiple times. Zamora and Lara admitted they had received an order from MS-13 members to kill the teenager. After receiving the order, they assisted in taking him to the forest where they then struck him with a bat and machete to the point of near decapitation.
They will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges are the result of an investigation by the FBI, Houston Police Department, Texas Rangers and the Walker County Sheriff’s Office. Deputy Chief Mark E. Donnelly and Assistant U.S. Attorney Casey MacDonald are prosecuting the case.
Money Courier Sentenced for Money LaunderingRead the Press Release
LAREDO, Texas – The second of 20 defendants convicted in a marijuana trafficking and money laundering conspiracy has been ordered to prison, announced U.S. Attorney Kenneth Magidson. Erika Alvarez, 39, of Nuevo Laredo, Mexico, previously pleaded guilty for her role in the money laundering.
Today, U.S. District Judge George P. Kazen ordered she serve a term of 48 months in prison to be followed by three years of supervised release. The court further issued a final order of forfeiture in the amount of $171,240.
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.
Alvarez was identified as Trejo-Nava’s niece. Her role was that of a money courier who travelled periodically to the Dallas area to pick up drug proceeds and transport them in bulk to Laredo. She then delivered the drug proceeds to Trejo Nava who then had the proceeds transported to Mexico.
Between Oct. 6-7, 2011, Trejo-Nava arranged for the transportation of $48,000 in drug proceeds from the Dallas area to Nuevo Laredo. Alvarez drove to the Dallas area in a personal vehicle and picked up the currency from a co-conspirator. She then transported the drug proceeds to Laredo and delivered the bulk cash to Trejo-Nava who arranged for another co-conspirator to transport it to Mexico. On May 28, 2012, Trejo-Nava again sent Alvarez to Dallas for the purpose of receiving drug money. The next day, she received $73,240 in drug proceeds from a Dallas area co-conspirator for transportation to Laredo. En route south, law enforcement performed a traffic stop of Alvarez and recovered four bundles of bulk cash drug proceeds totaling $73,240. She was also stopped on a third trip, during which time she was found to be in possession of several bundles of money hidden in her pants totaling $50,000 in drug proceeds.
A total of 20 defendants have been convicted for their respective roles in the overall conspiracy. A federal jury convicted Rafael Ortega aka Tio, 57, of Laredo, and Baltazar Ibarra Cardona, 55, of Nuevo Laredo in the case. Ortega was ordered to serve 120 months in federal prison, while Cardona is awaiting sentencing.
The remaining 17 defendants had previously pleaded guilty and are also awaiting sentencing. Erasmo 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, Mexico; 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. Five others - Juan Manuel Vargas Aguilar, 46, Mario Albert Rodriguez, 30, and Ricardo Ramirez, 34, all 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 to launder drug proceeds.
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.
“Babysitter” Charged with Producing Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – Rosa Linda Ganceres, 53, of Mathis, has been charged in a criminal complaint for sexual exploitation of a child, otherwise known as production child pornography, announced U.S. Attorney Kenneth Magidson.
According to the federal criminal complaint filed this morning, Ganceres and her boyfriend - Daniel Benson Billman, 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, according to the allegations. Instead, Billman sexually assaulted the two-year-old girl while Ganceres allegedly recorded the assault.
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 allegedly recorded.
Billman has 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 in custody and expected to make her initial appearance at 2:00 p.m. today before U.S. Magistrate Judge B. Janice Ellington.
If convicted, she faces a minimum of 15 years and up to 30 years in federal prison as well as a possible $250,000 fine.
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."
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Bering Straits Technical Services and Parent Company Pay Civil Fines for Alleged Violations of the False Claims ActRead the Press Release
HOUSTON - Bering Straits Technical Services LLC (BSTS) and its parent company, Bering Straits Native Corporation (BSNC), have paid the Southern District of Texas $2 million in damages to resolve numerous alleged violations of the False Claims Act, announced U.S. Attorney Kenneth Magidson. The settlement was finalized April 26, 2016, without an admission of liability.
“Yesterday’s settlement should serve as a reminder to government contractors of their accountability to the public,” said Magidson. “The citizens of this district should be reassured that the Department of Justice (DOJ) and law enforcement are doing all they can to ensure tax payer money is spent appropriately. I encourage those who are knowledgeable about fraudulent practices against the government to come forward and report wrongdoing.”
“Contractors are expected to comply with their statutory obligations and act in good faith when dealing with the U.S. government,” said Special Agent in Charge Janice M. Flores of the Defense Criminal Investigative Service (DCIS), Southwest Field Office. “The DCIS is committed to working with its partner agencies, such as DOJ, Defense Contract Audit Agency (DCAA) and the U.S. Army Criminal Investigation Command (CID) to ensure integrity of the Defense Department’s procurement process. This settlement demonstrates that combatting fraud, waste and abuse within Department of Defense (DOD) contracting remains a top priority.”
The settlement is the result of a whistleblower suit filed under seal in Houston federal court on Feb. 3, 2012. The suit alleged that BSTS and BSNC caused false claims to be submitted to DOD and/or the Defense Logistics Agency (DLA) for maintenance facility services provided at the Red River Army Depot located near Texarkana. BSTS and BSNC entered contracts with DOD for maintenance and repair of the DLA facilities located at the Red River Army Depot.
Specifically, the whistleblower alleged that beginning in September 2010, BSTS and BSNC submitted false preventative maintenance reports for maintenance that was not performed and false repair work orders, thereby overcharging the government. The complaint also claimed that BSTS and BSNC employees were directed to repair equipment that no longer existed or was no longer in service and compelled to claim maintenance hours and supply costs for work that was not performed. Employees were also allegedly coerced to “pencil whip.” That is, make up hours after the fact with no relation to time actually spent on the maintenance. Invoices were based on the fraudulent documents and presented to the U.S. for payment.
BSTS is a limited liability company organized in the State of Alaska with its principal place of business in Anchorage, conducts business in several states, including Texas, and contracts with numerous government facilities. BSTS contracted with the U.S. Army Corps of Engineers to provide services at the Red River Army Depot in Texarkana pursuant to two contracts which were terminated Feb. 28, 2013, and Aug. 31, 2014, respectively. BSTS ceased providing services at the Red River Army Depot Aug. 31, 2014.
BSNC is the parent corporation of BSTS and is headquartered in Nome, Alaska. Its regional operations include real estate management, development, tourism, construction, mining services and sales of rock and aggregate. BSNC also has an office in Anchorage, which oversees government contract work under SBA 8(a), HubZone, and small business programs. The Anchorage operations also include construction, support services and shareholder services.
Under the federal False Claims Act, a whistleblower, known as the relator, is entitled to share in the government’s monetary recovery under certain conditions.
The settlement was a result of joint investigation by DCIS, DCAA, U.S. Army CID and DOJ. Assistant U.S. Attorney Jill Venezia handled the matter for the United States.
Bering Straits Technical Services and Parent Company Pay Civil Fines for Alleged Violations of the False Claims ActRead the Press Release
HOUSTON - Bering Straits Technical Services LLC (BSTS) and its parent company, Bering Straits Native Corporation (BSNC), have paid the Southern District of Texas $2 million in damages to resolve numerous alleged violations of the False Claims Act, announced U.S. Attorney Kenneth Magidson. The settlement was finalized April 26, 2016, without an admission of liability.
“Yesterday’s settlement should serve as a reminder to government contractors of their accountability to the public,” said Magidson. “The citizens of this district should be reassured that the Department of Justice (DOJ) and law enforcement are doing all they can to ensure tax payer money is spent appropriately. I encourage those who are knowledgeable about fraudulent practices against the government to come forward and report wrongdoing.”
“Contractors are expected to comply with their statutory obligations and act in good faith when dealing with the U.S. government,” said Special Agent in Charge Janice M. Flores of the Defense Criminal Investigative Service (DCIS), Southwest Field Office. “The DCIS is committed to working with its partner agencies, such as DOJ, Defense Contract Audit Agency (DCAA) and the U.S. Army Criminal Investigation Command (CID) to ensure integrity of the Defense Department’s procurement process. This settlement demonstrates that combatting fraud, waste and abuse within Department of Defense (DOD) contracting remains a top priority.”
The settlement is the result of a whistleblower suit filed under seal in Houston federal court on Feb. 3, 2012. The suit alleged that BSTS and BSNC caused false claims to be submitted to DOD and/or the Defense Logistics Agency (DLA) for maintenance facility services provided at the Red River Army Depot located near Texarkana. BSTS and BSNC entered contracts with DOD for maintenance and repair of the DLA facilities located at the Red River Army Depot.
Specifically, the whistleblower alleged that beginning in September 2010, BSTS and BSNC submitted false preventative maintenance reports for maintenance that was not performed and false repair work orders, thereby overcharging the government. The complaint also claimed that BSTS and BSNC employees were directed to repair equipment that no longer existed or was no longer in service and compelled to claim maintenance hours and supply costs for work that was not performed. Employees were also allegedly coerced to “pencil whip.” That is, make up hours after the fact with no relation to time actually spent on the maintenance. Invoices were based on the fraudulent documents and presented to the U.S. for payment.
BSTS is a limited liability company organized in the State of Alaska with its principal place of business in Anchorage, conducts business in several states, including Texas, and contracts with numerous government facilities. BSTS contracted with the U.S. Army Corps of Engineers to provide services at the Red River Army Depot in Texarkana pursuant to two contracts which were terminated Feb. 28, 2013, and Aug. 31, 2014, respectively. BSTS ceased providing services at the Red River Army Depot Aug. 31, 2014.
BSNC is the parent corporation of BSTS and is headquartered in Nome, Alaska. Its regional operations include real estate management, development, tourism, construction, mining services and sales of rock and aggregate. BSNC also has an office in Anchorage, which oversees government contract work under SBA 8(a), HubZone, and small business programs. The Anchorage operations also include construction, support services and shareholder services.
Under the federal False Claims Act, a whistleblower, known as the relator, is entitled to share in the government’s monetary recovery under certain conditions.
The settlement was a result of joint investigation by DCIS, DCAA, U.S. Army CID and DOJ. Assistant U.S. Attorney Jill Venezia handled the matter for the United States.
Two Convicted of Using Harris County Inmate Stolen Identities to Commit Tax FraudRead the Press Release
HOUSTON – Two men from Houston have entered guilty pleas to using stolen personal identifying information stolen from Harris County inmates to submit false and fraudulent individual income tax returns to the Internal Revenue Service (IRS), announced U.S. Attorney Kenneth Magidson.
Brandon Banks, 35, and Cal Williams, 29, admitted they used the names, dates of birth and Social Security numbers of unsuspecting Harris County inmates and others in Houston to submit false tax returns claiming refunds of several thousand dollars.
Both pleaded guilty to the conspiracy, while Banks also pleaded to one count of aggravated identity theft.
The men devised and executed the scheme beginning in approximately January 2012 and continuing until December 2013. Specifically, in February 2013, Banks provided Williams with lists containing the means of identification of individuals for the purpose of electronically filing false federal tax returns by interstate wire. Shortly thereafter, Williams provided the stolen personal identifying information to a person who was cooperating with law enforcement and instructed that individual to electronically submit a fraudulent claim for a tax refund.
The next month, at the direction of law enforcement agents, the person cooperating with law enforcement met with Williams and gave him approximately $1,942, his purported share of the false tax refund.
U.S. District Judge Kenneth M. Hoyt, accepted the pleas today and has set sentencing for July 11, 2016. At that time, both face up to 20 years in federal prison and a possible $250,000 fine. Banks will also face a mandatory minimum of 24 months which much be served consecutively to any other prison term imposed. Both were permitted to remain on bond pending that hearing.
IRS-Criminal Investigation, U.S. Postal Inspection Service, Houston Police Department, Harris County Sheriff’s Department and U.S. Secret Service conducted the investigation. Assistant U.S. Attorney Vernon Lewis is prosecuting the case.
Former Energy Company Employee Pleads Guilty to EmbezzlingRead the Press Release
HOUSTON – A former employee of Southwestern Energy Co. has pleaded guilty to embezzling more than $450,000 from the company, announced U.S. Attorney Kenneth Magidson.
Southwestern Energy Co. employed Kendra Walker, 28, of Houston, in its accounts payable department. Beginning in February 2014, she admitted she abused her position to access the company’s accounts payable system and fraudulently change bank account information for some of its vendors to instead list bank accounts that she controlled. She then caused the company’s accounts payable system to issue payments for invoices that, in reality, the vendors did not submit. Instead, because Walker had changed the vendors’ bank account information, these payments transmitted money into ban2 accounts that she controlled.
From February 2014 to February 2015, Walker embezzled $452,025.56.
She was convicted of four counts of wire fraud, on each for which she faces up to 20 years in federal prison as well as a $250,000 maximum fine or twice the pecuniary gain or loss. She was permitted to remain on bond pending that hearing, set for June 26, 2016.
FBI investigated. Assistant U.S. Attorney Michael Chu is prosecuting the case.
Identity Thief Goes to Federal PrisonRead the Press Release
CORPUS CHRISTI, Texas - Paul Michael Dye, 49, of Corpus Christi, has been sentenced to federal prison for identity theft, announced U.S. Attorney Kenneth Magidson. Dye pleaded guilty Oct. 29, 2015.
Today, U.S. District Judge Nelva Gonzales Ramos ordered Dye to serve 30 months for possessing five or more identification documents with the intent to defraud as well as another 24 months for the identity theft which must be served consecutively. The court also revoked his supervised release he was serving for a prior securities fraud conviction resulting in another 21 months in prison, six months of which will be served consecutively to his new sentence. The total five-year sentence will be followed by three years of additional supervised release. Dye was further ordered to pay full restitution to his victims.
Dye was arrested March 16, 2015. At that time, he was in possession of numerous identity documents in the names of others including three Texas driver’s licenses, three Texas ID cards, one Florida ID, five Social Security cards, two Medicare health insurance cards, seven credit cards and a variety of other student IDs, heath plan IDs and work IDs. Dye also had an assortment of stolen, counterfeit and forged checks. The documents found in Dye’s possession included a fraudulent Texas driver’s license bearing Dye’s photograph but the name and identifying information of another individual.
Agents discovered that between March 8, 2015, and March 11, 2015, 22 counterfeit checks in the name appearing on Dye’s fraudulent driver’s license totaling $5,818.58 were passed at retailers in Corpus Christi and Portland. The routing number and account number on all of these checks actually belonged to an individual whose stolen identifying information was found in Dye’s possession.
An examination of a notebook found in Dye’s vehicle revealed pages of identifying information including names, addresses, dates of birth, Social Security numbers, driver’s license numbers, driver’s license issue and expiration dates, bank account routing and account numbers and other information for dozens of individuals. Through the course of the investigation, agents discovered that a number of the driver’s licenses and ID cards had been used to pass or cash counterfeit and forged checks in the Corpus Christi area and Dye had additional fraudulent checks ready to be passed in his possession.
Dye was also found to be on federal supervised release as the result of a prior conviction for making, possessing and uttering counterfeited securities.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges are the result of an investigation conducted by the Corpus Christi Police Department and the U.S. Secret Service. Assistant U.S. Attorney Robert D. Thorpe Jr. is prosecuting the case.
Foreign National Sentenced to 36 Months in Prison for Human SmugglingRead the Press Release
A Guatemalan woman was sentenced today to 36 months in federal prison for conspiracy and human smuggling related to a scheme to smuggle undocumented migrants from India into the United States.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Kenneth Magidson of the Southern District of Texas and Special Agent in Charge Shane Folden of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in San Antonio made the announcement.
Rosa Astrid Umanzor-Lopez, 36, was extradited to the United States from Guatemala and later pleaded guilty to one count each of conspiracy to smuggle undocumented migrants into the United States for profit and human smuggling in the Southern District of Texas. Umanzor-Lopez was sentenced today by U.S. District Judge Ewing Werlein Jr. of the Southern District of Texas. She is expected to face deportation proceedings following her release from prison.
At the plea hearing and in related court documents, Umanzor-Lopez admitted that between January 2011 and her arrest in Guatemala on Feb. 4, 2014, she and other conspirators recruited individuals in India who were willing to pay large sums of money to be smuggled into the United States. For their smuggling operations, Umanzor-Lopez and her co-conspirators used a network of facilitators to transport groups of undocumented migrants from India through South America and Central America and then into the United States by air travel, automobiles, water craft and foot, she admitted. Umanzor-Lopez also admitted that many of these smuggling events involved illegal entry into the United States via the U.S.-Mexico border near McAllen and Laredo, Texas.
Three other members of the conspiracy have also been convicted and sentenced, and a fourth remains a fugitive.
HSI agents in McAllen and Houston investigated the case with the assistance of U.S. Customs and Border Protection’s Alien Smuggling Interdiction Unit. Trial Attorney Ann Marie E. Ursini of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorneys Leo J. Leo III and Casey MacDonald of the Southern District of Texas prosecuted the case. The Criminal Division’s Office of International Affairs provided significant support with the defendant’s extradition.
The investigation was conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI. The ECT program focuses on human smuggling networks that may present particular national security or public safety risks, or present grave humanitarian concerns. ECT has dedicated investigative, intelligence and prosecutorial resources. ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.
Foreign National Sentenced for Human SmugglingRead the Press Release
HOUSTON - A Guatemalan woman was sentenced today to 36 months in federal prison for conspiracy and human smuggling related to a scheme to smuggle undocumented migrants from India into the United States.
U.S. Attorney Kenneth Magidson made the announcement along with Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Special Agent in Charge Shane Folden of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in San Antonio.
Rosa Astrid Umanzor-Lopez, 36, was extradited to the United States from Guatemala and later pleaded guilty to one count each of conspiracy to smuggle undocumented migrants into the United States for profit and human smuggling. U.S. District Judge Ewing Werlein Jr. sentenced Umanzor-Lopez today. She is expected to face deportation proceedings following her release from prison.
At the plea hearing and in related court documents, Umanzor-Lopez admitted that between January 2011 and her arrest in Guatemala on Feb. 4, 2014, she and other conspirators recruited individuals in India who were willing to pay large sums of money to be smuggled into the United States. For their smuggling operations, Umanzor-Lopez and her co-conspirators used a network of facilitators to transport groups of undocumented migrants from India through South America and Central America and then into the United States by air travel, automobiles, water craft and foot, she admitted. Umanzor-Lopez also admitted that many of these smuggling events involved illegal entry into the United States via the U.S.-Mexico border near McAllen and Laredo.
Three other members of the conspiracy have also been convicted and sentenced, and a fourth remains a fugitive.
HSI agents in McAllen and Houston investigated the case with the assistance of U.S. Customs and Border Protection’s Alien Smuggling Interdiction Unit.
Assistant U.S. Attorneys Leo J. Leo III and Casey MacDonald prosecuted the case along with Trial Attorney Ann Marie E. Ursini of the Criminal Division’s Human Rights and Special Prosecutions Section. The Criminal Division’s Office of International Affairs provided significant support with the defendant’s extradition.
The investigation was conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI. The ECT program focuses on human smuggling networks that may present particular national security or public safety risks, or present grave humanitarian concerns. ECT has dedicated investigative, intelligence and prosecutorial resources. ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.
Two Former Houston Medical Clinic Owners Convicted of Defrauding Medicare of $5.4 MillionRead the Press Release
HOUSTON – Two former owners of medical clinics in Houston have entered pleas of guilty to defrauding Medicare of $5.4 million, announced U.S. Attorney Kenneth Magidson.
Zaven Pogosyan, 37, and Edvard Shakhbazyan, 40, were the former owners of medical clinics located at 2110 Jefferson, 2112 Pease and 6892 Southwest Freeway, Suite 2A, in Houston. They pleaded guilty yesterday to multiple counts related to the fraud scheme. Two others charged in the case - Seryan Mirzakhanyan, 31, and Frank Montgomery, 66, of Houston, previously entered pleas of guilty.
Pogosyan and Shakhbazyan admitted they opened the three clinics with the intention to defraud Medicare. They admitted that the majority of the diagnostic tests allegedly done at the three clinics were either not done or not medically necessary and that the medical equipment, patient files and doctors were all there only to make it appear legitimate. They further admitted hiring doctors for that purpose and that they paid marketers to bring patients to the fraudulent clinics.
There was allegedly only one doctor working at the three different medical clinics in Houston which Pogosyan managed. Pogosyan also admitted he hired two other doctors to travel to Houston once a month to review patient files at the clinic located on Pease Street.
Mirzakhanyan, Pogosyan and Shakhbazyan paid recruiters/marketers like Montgomery who brought the patients to the clinics.
U.S. District Judge Lynn N. Hughes has set sentencing for Pogosyan and Shakhbazyan on July 25, 2016. At that time, both men each face a maximum penalty of 10 years in a federal prison and a $250,000 fine for each of the 42 health care fraud convictions as well as the conspiracy. In addition, they face a maximum of five years for the conspiracy to pay and receive kickbacks.
Montgomery and Mirzakhanyan will be sentenced Oct. 11, 2016.
The criminal charges are the result of a joint investigation conducted by agents of the FBI, Internal Revenue Service - Criminal Investigation, U.S. Department of Health and Human Services - Office of the Inspector General and the Medicaid Fraud Control Unit of the Texas Attorney General's Office. Assistant U.S. Attorney (AUSA) Al Balboni and Special AUSA Rodolfo Ramirez are prosecuting the case.
Houston Tax Preparer Sentenced to Prison for Defrauding the IRSRead the Press Release
HOUSTON – The operator of a tax preparation in Houston has been ordered to federal prison following her conviction of knowingly preparing a materially false claim against the United States, announced U.S. Attorney Kenneth Magidson along with Special Agent in Charge Rick Goss of IRS-Criminal Investigation (IRS-CI). Adriana Lizette Luna pleaded guilty Sept, 17, 2015, admitting she prepared a materially false 2011 U.S. Individual Income Tax return.
Today, U.S. District Judge Sim Lake, who accepted the guilty plea, handed Luna an 18-month sentence to be immediately followed by two years of supervised release. She was further ordered to pay a $116,000 in restitution.
“Cheating the government, including making bogus claims for tax refunds hurts everyone. The money that is fraudulently taken comes out of the pockets of all honest people that pay their taxes,” said Goss. “IRS special agents will continue to protect our taxpayers from those that compromise the integrity of our nation's tax system for personal greed.”
According to the written plea agreement filed in the record of the case, Luna operated an income tax preparation business known at times as Ruby’s Income Tax and Diaz Tax Service at other times. As part of the plea, Luna admitted preparing at least 23 false income tax returns for clients, including the 2011 return which the basis for her plea which claimed a false refund of approximately $11,724.
Luna admitted in the plea agreement that the intended tax loss on the 23 false tax returns she prepared was more than $235,000 and that she split roughly one-half of the false tax refunds with her clients. As part of the plea, she has agreed to pay restitution to the United States in the amount of $116,000.
Luna was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
IRS-CI investigated. Assistant U.S. Attorney Charles J. Escher is prosecuting the case.
Chevron Oil Trader Indicted in International Commercial Bribery SchemeRead the Press Release
HOUSTON – Two men have been charged in an international commercial bribery scheme which victimized Chevron Corporation, announced U.S. Attorney Kenneth Magidson along with Inspector In Charge Adrian Gonzalez of the U.S. Postal Inspection Service (USPIS) and Rick Goss of Internal Revenue Service - Criminal Investigation (IRS-CI).
Shawn Thomas Potts, 41, of Pennsylvania, surrendered to federal authorities in Houston this morning and is expected to make his initial appearance before U.S. Magistrate Judge Nancy Johnson at 2:00 p.m. today. Robert Stanley Corbitt, 71, of Houston, was arrested yesterday, made his initial appearance and was permitted release upon posting bond.
The indictment alleges the two men engaged in a wire fraud and money laundering conspiracy running from 2004 to 2012. According to the indictment, Potts, a Chevron oil trader based in New Jersey and later in London, England, steered Chevron oil trades to counterparties who were willing to pay him kickbacks. Corbitt, who worked as a consultant to counterparties on Chevron transactions, obtained kickbacks on transactions involving Potts. He also allegedly funneled kickback payments to Potts through a Cayman Islands bank account that he held. The Indictment alleges the kickback scheme deprived Chevron of the honest services of its employee, Potts. The kickback scheme allegedly involved Chevron oil purchases from Cameroon in West Africa, Belarus and Russia, among other locales.
“USPIS has sought for hundreds of years those who use the Postal Service for illegal gain,” said Gonzalez. “The ability to use the mail in a safe and secure manner is at the core of the Postal Inspection Service’s mission. When criminals use the mail to defraud, postal inspectors will not hesitate to ensure they are brought to justice.”
The Indictment details elaborate steps taken to conceal the scheme from Chevron and others and to launder the proceeds of the scheme. Potts, Corbitt and other conspirators allegedly used foreign entities and nominees to hold foreign bank accounts in Switzerland and the Cayman Islands to receive, hold and transfer kickback funds and submitted false invoices to disguise kickback payments as legitimate fees for service. The indictment also alleges they filed false tax returns that omitted kickback income and that falsely claimed no interest in foreign bank accounts. Potts and Corbitt allegedly received kickback funds in cash or caused money to be wired directly from nominee accounts in Switzerland to other individuals and entities on their behalf. According to the indictment, kickback funds were wired directly from Swiss bank accounts to car dealers in the United States for cars Potts and Corbitt were purchasing.
“Hiding income and assets offshore whether obtained legally or illegally is against the law,” said Goss. “IRS-CI has stepped up its efforts in the international financial arena and has become a trusted leader in pursuit of those who use hidden offshore accounts and companies to circumvent the law.”
Both men are charged with wire fraud conspiracy and conspiracy to commit money laundering. If convicted, they each face up to 20 years in federal prison. Corbitt is also charged with filing a false tax return and faces another three years upon conviction.
The charges are the result of an investigation by USPIS and IRS-CI. Assistant U.S. Attorney Robert S. Johnson is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Houston Tax Return Preparer Convicted of Falsifying Personal and Client Tax ReturnsRead the Press Release
HOUSTON – Frances King Diaz has entered a plea of guilty for falsifying personal and client tax returns, announced U.S. Attorney Kenneth Magidson along with Special Agent in Charge Rick Goss of Internal Revenue Service – Criminal Investigation (IRS-CI).
According to the factual basis in support of the plea, Diaz claimed false deductions for herself and for clients of A&F Tax Service that generated fraudulent tax refunds totaling approximately $411,722 for tax years 2008 through 2012.
“While most return preparers provide excellent service to their clients, a few unscrupulous tax preparers file false and fraudulent returns to defraud the government, the honest tax-paying public and their own clients,” said Goss. “CI will continue to work to ensure that all tax practitioners adhere to professional standards and follow the law.”
During today’s hearing, Diaz admitted she filed tax returns for herself that substantially understated the business income of A&F Tax Service. The most egregious was a 2009 tax return that reported business income of only $11,205 from the tax preparation service when approximately $164,526 should have been reported. The plea agreement stipulated that this understatement alone cost the National Treasury $53,895. Diaz admitted that similar understatements in her 2010 thru 2012 tax returns cost the National Treasury another $144,756 for a total of approximately $198,651. Diaz has already made full restitution to the IRS for these losses.
Diaz also acknowledged that she sought to enhance the reputation of A&F Tax Service by generating large income tax refunds for her clients. In doing so, Diaz admitted she had inflated various deductions, credits and business losses in at least 35 tax returns for at least 15 clients for tax years 2008 through 2012 causing losses to the National Treasury of approximately $213,071. While these losses can be recovered from the taxpayers who received the refunds, Diaz could also be ordered to pay restitution at the time of sentencing.
U.S. District Judge David Hittner, who accepted the guilty plea, has set a sentencing date of July 15, 2016, at which time Diaz faces up to three years in prison and $250,000 fine. She was permitted to remain on bond until that hearing.
The investigation leading to these charges was conducted by IRS-CI. Assistant U.S. Attorney Jimmy Sledge Jr. is prosecuting the case.
Former Guard Sentenced for Having Sex with InmateRead the Press Release
HOUSTON – A former guard at the federal prison camp in Bryan will now be on the other side of prison bars following his conviction on one count of sexual abuse of a ward, announced U.S. Attorney Kenneth Magidson. Marshall Thomas, 35, of College Station, pleaded guilty to the charges Jan. 7, 2016.
Today, U.S. District Judge Gray Miller handed Thomas a 18-month sentence to be immediately followed by 10 years of supervised release. He must also register as a sex offender.
Thomas was charged with engaging in a sexual relationship in July 2014 with two different inmates while he was employed as a correctional officer.
Beginning in March 2014, Thomas began supervising a female inmate at federal prison camp. Soon after, he began making inappropriate comments to her and began to hug, kiss and touch her inappropriately whenever they would be alone. On or about July 19, 2014, Thomas directed her to go into the back of the dry storage room behind several boxes. At that time, Thomas began to kiss her, unzipped his pants and pulled down her pants. She resisted his efforts to have intercourse, but he did it anyway.
Thomas told her that if she reported any of the inappropriate conduct he would “flag” her and that “it was his career and her good time.”
Previously released on bond, Thomas was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges are the result of an investigation conducted by the Department of Justice - Office of the Inspector General. Assistant United States Attorneys Ruben R. Perez and Jill Stotts are prosecuting the case.
Woman Sentenced to Prison for Importing CocaineRead the Press Release
McALLEN, Texas – A 52-year-old Mexican national who resided in Reynosa, Tamaulipas, Mexico, has been ordered to federal prison following her conviction of importing and possessing with intent to distribute more than five kilograms of cocaine, announced U.S. Attorney Kenneth Magidson. A federal jury convicted Emma Areli Martinez-Morgado on Aug. 11, 2015, on all four counts as charged following one day of testimony and less than two hours of deliberation.
Today, Chief Judge Ricardo H. Hinojosa ordered Martinez-Morgado to serve a total of 51 months in federal prison. In handing down the sentence, Judge Hinojosa considered the quantity of the narcotics involved and the defendant’s role in committing the offense.
During trial, the jury heard that on Nov. 28, 2014, Martinez-Morgado entered the United States at the Pharr port of entry. She was driving a Chevrolet Blazer and was the only occupant in the vehicle when she approached the primary inspection area. There, a Customs and Border Protection (CBP) officer noticed that the spare tire underneath the vehicle appeared to have been tampered with and referred Martinez-Morgado for secondary inspection. The jury heard that Martinez-Morgado’s demeanor changed after being sent for further inspection.
At secondary, a subsequent search of the vehicle revealed 14 bricks of cocaine concealed within the spare tire, weighing a total of 15.12 kilograms. Testimony from an agent with Homeland Security Investigations (HSI) established a conservative value of the cocaine in the Rio Grande Valley to be approximately $250,000.
Martinez-Morgado originally denied any knowledge of the drugs and claimed she owned the vehicle and used it to cross into the United States to go shopping at K-Mart and flea markets. However, the government presented evidence showing that Martinez-Morgado’s crossing history in that vehicle was unusual in light of the stated purpose for travel.
Martinez-Morgado will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation leading to charges was conducted by CBP and HSI. Assistant U.S. Attorneys Alexandro Benavides and Leo J. Leo prosecuted the case.
Convicted Felon Ordered to Prison for Illegal Possession of FirearmsRead the Press Release
McALLEN, Texas – A 35-year-old “Valluco” is headed to federal prison following his conviction of being a felon in possession of a firearm, announced U.S. Attorney Kenneth Magidson. Jesus Grijalva, of San Juan, pleaded guilty Dec. 18, 2015.
Today, U.S. District Judge Randy Crane handed Grijalva a 63-month sentence to be immediately followed by three years of supervised release. At the hearing, the court heard evidence regarding several previous violent offenses that Grijalva had committed. In handing down the sentence, Judge Crane noted that Grijalva’s parents and siblings were accomplished individuals and that the defendant had taken a much different path in life.
On Aug. 21, 2015 law enforcement officials executed a search warrant on Grijalva’s residence in San Juan while investigating a possible kidnapping. Officers located Grijalva at the residence and identified him as a Valluco gang member. At that time, he was found to be in possession of cocaine, a stolen pistol and a shotgun despite having multiple felony convictions. Agents arrested Grijalva and seized the firearms and ammunition.
Grijalva will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges are the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the San Juan Police Department. Assistant U.S. Attorney David A. Lindenmuth prosecuted the case.
Jury Convicts Two in Identity Theft and Illegal Employment ConspiracyRead the Press Release
HOUSTON - A federal jury in Houston has convicted two El Salvadorian nationals both residing in Houston on all counts as charged in a conspiracy to employ 10 or more unauthorized aliens within a 12-month period, announced U.S. Attorney Kenneth Magidson.
The federal jury sitting in Houston returned guilty verdicts against Rudy Alexander Martinez, 36, and Israel Arquimides Martinez, 44, this afternoon following a two-week trial and approximately six hours of deliberation. Both were convicted of the conspiracy as well as employing unauthorized aliens, encouraging and inducing undocumented aliens to come to reside in the United States and conspiracy to do same as well as aggravated identity theft.
The jury heard that both defendants were employees of a waste disposal company and worked at one of the company’s locations in Houston. Rudy Martinez was a commercial route manager, while Israel Martinez was the residential operations lead driver. From on or around July 30, 2008, and continuing until on or around April 24, 2012, the defendants conspired to hire and continued to employ aliens they knew were unauthorized to work in the U.S. at the company.
Federal law requires employers to hire only U.S. citizens and aliens who are authorized to work here. However, the defendants and others hired manual laborers with little or no regard to their legal work status. Internal audits were conducted, after which the defendants and co-conspirators failed to take corrective measures to ensure the employing company hired workers authorized to work in the country. They also continued to employ undocumented aliens after receiving information, in some cases from the aliens themselves, which would indicate the person was not authorized to work in the U.S.
The jury also heard that the defendants encouraged undocumented aliens to obtain false documentation and assigned false identities to undocumented aliens. In some cases, they also provided the undocumented aliens with employment documents related to the false identity the aliens assumed so they could remain employed as helpers at the waste disposal company’s Houston location.
The individuals whose identities were assumed did not authorize or even know their identities were assumed by these undocumented aliens at the direction and encouragement of the conspirators. These individuals were often former employees of the companies, or individuals who had applied for employment but were never hired. Their information was stolen from documentation and records they executed in connection with their application for employment. The defendants and their co-conspirators would enter these individuals’ information into the payroll system and the undocumented alien would receive a paycheck for their work under the other individual’s name.
On or around Jan. 31, 2012, the defendants and their co-conspirators “fired” at least 10 helpers they knew to be unauthorized aliens purportedly because the aliens failed to supply documentation establishing they were legally present and authorized to work in the U.S. During the “termination” process, the defendants informed and encouraged unauthorized aliens to assume the identity of actual U.S. citizens or individuals who had legal status to reside and work here. They also informed undocumented aliens they could come back to work if they got “good papers” belonging to other individuals. Following their termination, the defendants and their co-conspirators assigned false identities to the terminated aliens and assisted them with obtaining related identifiers to use for employment and payroll purposes. The defendants then “rehired” at least 10 aliens under their assumed identities.
For conspiracy to encourage and induce aliens to reside or encouraging or inducing aliens to reside in the United States, both face up to 10 years in prison and a possible $250,000 fine. For the unlawful employment of unauthorized aliens charges or the conspiracy to so, they also face up to five years in prison as well as a $250,000 fine. In addition, the conviction of aggravated identity theft also carries a mandatory 24 months which must be served consecutively to any other prison term imposed. Sentencing is July 29, 2016.
Following the convictions, the court ordered the defendants into custody.
Agents assigned to Homeland Security Investigations - Worksite Enforcement Unit conducted the investigation leading to the charges. Assistant U.S. Attorneys Casey N. MacDonald and Douglas Davis are prosecuting the case.
Two Durable Medical Equipment Company Owners Charged in Similar Health Care Fraud SchemesRead the Press Release
McALLEN, Texas ‐ Federal charges have been filed against two individuals in separate cases for defrauding Texas Medicaid and/or Medicare in two separate schemes to defraud through false billings, announced U.S. Attorney Kenneth Magidson.
Manuel Gomez, Jr., 34, of Katy, owned two Rio Grande Valley area durable medical equipment (DME) companies, while Elva Santos, 36, of McAllen, owned Hope & Miracle DME in Mission.
A sealed indictment against Gomez was returned March 29, 2015, and unsealed today upon his arrest. He is expected to make an initial appearance in Houston before U.S. Magistrate Judge Stephen Smith at 10.00 a.m. tomorrow. Santos was charged in an unsealed information and is set for her appearance April 8, 2016, at 10:30 a.m. before U.S. Magistrate Judge Peter Ormsby.
Both are charged separately in difference cases but in similar schemes to defraud and sent false and fraudulent claims regarding DME, specifically incontinence supplies and diabetic supplies.
In his case, Gomez and/or his co-conspirators sent such claims totaling approximately $2,347,841.71 to Texas Medicaid, on which Texas Medicaid allegedly paid out $2,088,473.67, according to the indictment. Santos allegedly submitted false and fraudulent claims for $713,759.73 on which Texas Medicaid paid out $581,743.39. To conceal their schemes, both forged and/or caused others to forge the signatures of physicians on the required DME prescription forms also known as Title XIX forms.
Gomez owned Illusion Medical Equipment and Illusion Medical Equipment II LLC and is charged with one count of conspiracy to commit health care fraud, six counts of health care fraud and one count of aggravated identity theft.
The indictment alleges that Gomez conducted his scheme from Dec. 1, 2007, to Nov. 30, 2011. Gomez and his co-conspirators were allegedly responsible for the submission of false and fraudulent billings and the misuse of the identifying information of Texas Medicaid recipients. Gomez also allegedly paid illegal kickbacks in exchange for patient information, including patient Texas Medicaid numbers. He and/or his co-conspirators would then use the fraudulently obtained Texas Medicaid numbers to submit claims to Texas Medicaid in order to receive reimbursements.
In the separate, yet similar case against Santos, from Jan. 20, 2011, to May 10, 2013, she allegedly submitted the false and fraudulent claims. In one instance alleged in the information, Santos submitted or caused others to submit false or fraudulent claims with Medicare for a patient who was deceased on dates that Santos claimed to have provided diabetic supplies to the patient. The delivery tickets maintained by Hope & Miracle DME contained forged signatures of the deceased beneficiary after the date of her death.
Health care fraud carries a maximum punishment of 10 years in federal prison without parole and a $250,000 fine upon conviction. If convicted of the identity theft, Gomez also faces a mandatory 24 months which must be served consecutively to any other prison term imposed. The Texas Attorney General’s Medicaid Fraud Control Unit and the U.S. Department of Health and Human Services‐Office of Inspector General conducted the investigation. Assistant U.S. Attorney Michael Day is prosecuting the cases.
An indictment or information are accusations of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Twice Convicted Alien Smuggler Heads to PrisonRead the Press Release
LAREDO, Texas – A naturalized U.S. citizen from Cuba who had been residing in Louisville, Kentucky, has been ordered to federal prison following his convictions in two separate cases involving the smuggling of illegal aliens, announced U.S. Attorney Kenneth Magidson.
Yudelvis Alberto Jimenez-Elvirez, 29, entered a guilty plea Oct. 7, 2015, to smuggling illegal aliens and was released on bond. That same evening, he was arrested again on similar charges. He went to trial in that case and was convicted Dec. 16, 2015, after only 15 minutes of deliberation.
Today, U.S. District Judge Marina Garcia Marmolejo, who presided over the trial, handed Jimenez-Elvirez a total 97-month sentence to run concurrently on both cases.
Also sentenced today was Ricardo Gallo, 31, a U.S. permanent resident alien also from Cuba, who had pleaded guilty in the conspiracy involving the October 2015 smuggling attempt. He will serve 41 months in prison and must pay a $5000 fine.
At trial, Border Patrol agents testified about a semi-tractor and trailer being followed by a Chevrolet Tahoe that arrived at the Freer Border Patrol immigration checkpoint on the night of Oct. 7, 2015. Both vehicles displayed Florida license plates. Immediately after the 18-wheeler driver – Gallo - had been cleared to proceed, law enforcement learned that trailer had been detained on June 30, 2015, and used in an unsuccessful attempt to smuggle 17 Mexican and Guatemalan nationals illegally in the United States.
Agents pursued the 18-wheeler, but were unable to make contact with its driver because Jimenez, driving the Tahoe, blocked the agents’ official vehicle. Both vehicles were traveling at 80-85 miles per hour. Agents were eventually able to stop both vehicles and discovered 27 aliens sitting atop cargo of crushed aluminum cans in the trailer.
Five of the 27 aliens testified at trial, reporting that they or family members had made financial arrangements with smugglers in Mexico to smuggle them into country and to deliver them to various destinations within the United States. They testified about swimming or wading the Rio Grande River and entering Laredo illegally without inspection, later being taken to a warehouse in Laredo to wait for the trailer that would smuggle them further.
Jimenez and Gallo will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges were the result of an investigation conducted by Border Patrol and Homeland Security investigations. Assistant U.S. Attorney (AUSA) Jose Homero Ramirez prosecuted the cases. AUSA Shawn Coker handled the sentencing hearing today.
Former IT Director and Wife Arrested for Embezzling More Than $1 Million from EmployerRead the Press Release
HOUSTON – A Frisco couple, formerly of Houston, have been taken into custody on a multi-count indictment alleging a $1 million mail and wire fraud conspiracy, announced U.S. Attorney Kenneth Magidson. Bradley Freitas, 36, was the former Director of Information Technology (IT) services for Orion Real Estate Services Inc.
Freitas and his wife - Loren Freitas, 32 - are set to make their initial appearance in Sherman in the Eastern District of Texas at 11:00 a.m. They are then expected to appear in Houston before U.S. Magistrate Judge Stephen Smith on April 7 at 10:00 a.m.
The indictment, filed Feb. 17, 2016, and unsealed upon their arrests today, charges the Freitas with one count of conspiracy to commit mail and wire fraud, 11 counts of mail fraud and 10 counts of wire fraud.
According to the allegations in the indictment, from approximately April 14, 2009, through Jan. 14, 2014, Bradley Freitas embezzled approximately $1,009,634.45 from Orion Real Estate Services Inc. with the help of his wife. Orion is a full-service, multi-family residential real estate management company serving a wide variety of investors, ranging from institutions, private partnerships, foreign investors, individual owners and government housing organizations. With more than 665 employees, Orion allegedly provides management for all types of multi-family properties and had a growing portfolio of more than 25,000 apartment homes under management throughout the nation.
Bradley Freitas was hired as the director of IT services for Orion on March 5, 2009.
Throughout his employment, Bradley Freitas allegedly created false explanations on internal Orion company justification documents to mask unauthorized purchases as legitimate IT-related items. The indictment alleges he miscoded Orion justification documents to mask unauthorized personal purchases for several years and made these unauthorized purchases with company credit cards issued to him for IT purchases only. He allegedly purchased merchandise from online retailers, such as Amazon, NewEgg and CDW, and mailed it to either to his office or home.
Several of the items Freitas purchased, including a dining room table and chairs, a Gucci purse and wallet, home entertainment systems, televisions, etc., were for his and wife’s own personal enrichment, according to the allegations. Other items - iPads, laptops, etc. - were fraudulently purchased with the company card and allegedly sold on EBay or to their own private customers in New York and elsewhere for the Freitas to earn a profit.
According to the indictment, Loren Freitas would direct her husband at times on what to purchase and then mail the various items to be sold to their customers via FedEx or UPS.
Each charge carries a possible 20 years in federal prison and a possible $250,000 maximum fine, upon conviction.
The FBI conducted the investigation. 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.Two Sentenced in Aggravated Identity Theft and Wire Fraud SchemeRead the Press Release
HOUSTON – Two Houston residents have been ordered to federal prison following their convictions of wire fraud and aggravated identity theft, announced U.S. Attorney Kenneth Magidson. Chloe McClendon, 27, and Domonique Thomas, 25, pleaded guilty Oct. 9, 2015.
Today, U.S. District Judge David Hittner upwardly departed from the U.S. sentencing guidelines in ordering Thomas to prison. He received 72 months for wire fraud as well as a mandatory 24 months for the aggravated identity theft which must be served consecutively for a total of 96 month in federal prison. Judge Hittner ordered McClendon to serve a total of 65 months – 41 months for the wire fraud and a consecutive 24 months on the identity theft. Both defendants were also ordered to serve three years of supervised release and must pay restitution in the amount of $267,253.43. In handing down the sentences, Judge Hittner read excerpts from statements of some of the 1,526 identified victims in the case.
The defendants were able to engage in this scheme through the theft of personal identifying information (PII) of individuals from the Department of State Passport Agency where McClendon had worked. They used the stolen and unlawfully obtained PII of true persons to create counterfeit identification documents. The defendants then recruited other individuals to assume the stolen identities and use the counterfeit documents to obtain commercial lines of credit and purchase iPhones, iPads and other electronics merchandise.
Previously released on bond, McClendon was taken into custody following the sentencing today where she will remain pending transfer to a U.S. Bureau of Prisons facility. Thomas has been and will remain in custody.
A third co-defendant - Alicia Myles, 31 - who had also pleaded guilty, will be sentenced June 1, 2016. She remains in custody.
The investigation leading up to the arrest was conducted by the Department of State, Diplomatic Security Service, Houston Field Office and Criminal Fraud Investigations Division and the Houston Police Department. Assistant U.S. Attorneys Ted Imperato and Alamdar Hamdani are prosecuting this case.
Mexican National Sentenced for Possession of Child PornographyRead the Press Release
LAREDO, Texas – Leobel Fuentes-Piedras, 22, of Puebla, Mexico, has been ordered to prison following his conviction of possession of child pornography, announced U.S. Attorney Kenneth Magidson. Fuentes-Piedras pleaded guilty Dec. 11, 2014.
Today, U.S. District Judge George P. Kazen, who accepted the guilty plea, handed Clark a sentence of 84 months in federal prison to be immediately followed by a 15-year-term of supervised release. He will also be required to register as a sex offender.In May 2014, the Texas Attorney General’s Office received information from Facebook that possible Child pornography was being uploaded to a Facebook account. The IP address was verified and law enforcement executed a search warrant at the identified location. At that time, law enforcement seized computer devices and interviewed Fuentes-Piedras.
He admitted to uploading child pornography through his computer and iPhone to Facebook accounts so he could access them from anywhere. Forensics analysis ultimately identified 54 shared files were consistent with child pornography.
Fuentes-Piedras will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations and the Webb County Sheriff’s Office conducted the investigation.
The arrest of Fuentes-Piedras was a result of Operation Child Guardian, which was launched by the Webb County Sheriff’s Office in 2009. The success of these investigations have put dozens of suspected child predators behind bars.This case, prosecuted by Assistant U.S. Attorney Christopher S. Coker, 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 Psychiatrist Sentenced to 144 Months in Prison for Role in $158 Million Medicare Fraud SchemeRead the Press Release
A Houston psychiatrist was sentenced today to 144 months in prison for her role in a $158 million Medicare fraud scheme involving false claims for mental health treatment.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Kenneth Magidson of the Southern District of Texas, Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office, Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services-Office of Inspector General (HHS-OIG) Dallas Region, Special Agent in Charge D. Richard Goss of the Internal Revenue Service-Criminal Investigation (IRS-CI) Houston Field Office and the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU) made the announcement.
Sharon Iglehart, 58, a former attending psychiatrist at Riverside General Hospital (Riverside) of Houston, was sentenced by U.S. District Judge Ewing Werlein Jr. of the Southern District of Texas. Judge Werlein also ordered Iglehart to pay $6,363,528.82 in restitution and to forfeit the same amount.
On Sept. 10, 2015, following a seven-day trial, a jury convicted Iglehart of one count of conspiracy to commit health care fraud, one count of health care fraud and three counts of making false statements relating to health care matters.
According to evidence presented at trial, from 2006 until June 2012, Iglehart and others engaged in a scheme to defraud Medicare by submitting through Riverside approximately $158 million in false and fraudulent claims to Medicare for partial hospitalization program (PHP) services, an intensive outpatient treatment for severe mental illness. The evidence presented at trial showed that the Medicare beneficiaries for whom Riverside billed Medicare did not receive PHP services. In fact, evidence proved that most of the Medicare beneficiaries rarely saw a psychiatrist and did not receive intensive psychiatric treatment at all.
In addition, evidence presented at trial showed that Iglehart personally billed Medicare for individual psychotherapy and other treatment purportedly provided to patients at Riverside locations – treatment that she never provided. Further, Iglehart falsified the medical records of patients at Riverside’s inpatient facility to make it appear as if she provided psychiatric treatment when she did not, the evidence showed.
To date, 12 other individuals have been convicted based on their roles in this scheme, including Earnest Gibson III, 71, of Houston, the former president of Riverside; Earnest Gibson IV, 38, of Pearland, Texas, the operator of one of Riverside’s PHP satellite locations; Regina Askew, 50, of Houston, a group home owner and patient file auditor; and Robert Crane, 59, of Spring, Texas, a patient recruiter, who were all convicted after a jury trial in October 2014. Earnest Gibson III was sentenced to 45 years in prison; Earnest Gibson IV was sentenced to 20 years in prison; Askew was sentenced to 12 years in prison; and Crane has not yet been sentenced. Mohammad Khan, 66, of Houston, an assistant administrator at the hospital, who managed many of the hospital’s PHPs, pleaded guilty and was sentenced to 40 years in prison.
The FBI, HHS-OIG, IRS-CI and the MFCU investigated the case with assistance from the Railroad Retirement Board’s Office of Inspector General and the Office of Personnel Management’s Office of Inspector General. The case was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Texas. Assistant Chiefs Laura M.K. Cordova and Ashlee C. McFarlane of the Fraud Section are prosecuting the case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged over 2,300 defendants who collectively have billed the Medicare program for over $7 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.stopmedicarefraud.gov.
Warehouse Manager Ordered to PrisonRead the Press Release
LAREDO, Texas – The first of 20 defendants convicted in a conspiracy to possess with intent to distribute in excess of 1,000 kilograms of marijuana has been ordered to prison, announced U.S. Attorney Kenneth Magidson. A federal jury convicted Rafael Ortega aka Tio, 57, of Laredo, of one count of conspiracy and four counts of possession with intent to distribute in excess of 1,000 kilograms of marijuana on Nov. 3, 2015, following a three-day trial.
Today, U.S. District Judge Marina Garcia Marmolejo ordered he serve a total of 120 months in prison to be followed by five years of supervised release. In sentencing Ortega, the court took into consideration the evidence presented at trial which established Ortega was accountable for facilitating the transportation of more than 6,300 kilograms of marijuana from Sept. 24, 2011, to Aug. 27, 2012.
During trial, the government presented testimony from 13 witnesses and admitted more than 300 exhibits. Ortega was a warehouse manager in Laredo who, unbeknownst to his employer, made the building available to the Erasmo Trejo Nava drug trafficking organization for the loading and unloading of marijuana before and after business hours and on weekends. He received $3,000 on each occasion. Ortega allowed members of the drug organization to prepare the drug shipments using the warehouse and warehouse yard. A trailer would bring large wooden crates to the warehouse which were unloaded and readied for marijuana bundles to arrive from stash houses. As many as 138 bundles each weighing 20-40 pounds were unloaded at the warehouse and placed into the crates.
Surveillance showed Ortega meeting the co-conspirators at the warehouse and unlocking the gates to allow them access and entry. Testimony further revealed that Ortega used the warehouse forklift to assist the organization with unloading and loading of the crates into the trailers.
Evidence established that Ortega used his employer’s warehouse unload, load and transport approximately 6,394 kilograms of marijuana.
The warehouse in question had no knowledge of Ortega’s use of their warehouse for these illicit purposes. Ortega was a trusted employee who had been employed by the warehouse for more than 20 twenty years and had full access to the warehouse to include keys to the gates, office, warehouse doors and security codes.
Baltazar Ibarra Cardona, 55, of Nuevo Laredo, was also convicted at trial and is awaiting sentencing. He was one of several truck drivers used by the organization to transport marijuana from Laredo to Dallas.
The remaining 18 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, Mexico; 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. Five others - Juan Manuel Vargas Aguilar, 46, Mario Albert Rodriguez, 30, and Ricardo Ramirez, 34, all 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 Erika Alvarez, 39, Raquel Margarita Ramos Jimenez, 45, and Leslie Bernice Trejo, 23, all of Laredo, entered pleas of guilty to one count of conspiracy to launder drug proceeds.
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.
Palmview Man Convicted of Receiving Child Pornography via the InternetRead the Press Release
McALLEN, Texas – Palmview resident Eduardo Pena, 33, has entered a plea of guilty to one count of receipt of child pornography, announced U.S. Attorney Kenneth Magidson.
Pena came to the attention of law enforcement following an investigation which began Nov. 15, 2015, into persons using the Internet to traffic in child pornography. A Homeland Security Investigations (HSI) agent was able to locate and identify Pena as the owner of a computer offering to participate in the receipt of child pornography movies through a peer-to-peer network.
Law enforcement executed a search warrant Jan. 13, 2016, at Pena's Palmview residence, at which time they seized computers and an external storage media device. The forensic examination revealed 49 movies of clearly young children engaged in sexually explicit conduct. These movies included children under the age of 12 engaged in sadistic conduct, bondage and acts of violence.
Pena admitted he downloaded child pornography from the Internet, thereby receiving and possessing the child pornography found on his computer and external storage media.
U.S. District Judge Micaela Alvarez, who accepted the guilty plea, has set sentencing for June 16, 2016, at 2:00 p.m. At that time, Pena faces a minimum of five and up to 20 years in federal prison and a possible $250,000 fine. He will remain in custody pending that hearing.
The charges are the result of an investigation conducted by HSI.
This case, prosecuted by Assistant U.S. Attorney Lynn Wang, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Jury Convicts Doctor of Home Health Care FraudRead the Press Release
HOUSTON – A federal jury sitting in Houston has returned guilty verdicts against Dr. Warren Dailey, 68, on five counts related to health care fraud following a three-day-trial, announced U.S. Attorney Kenneth Magidson. The jury deliberated for approximately three hours this afternoon before finding Dailey guilty of conspiracy to commit health care fraud, two counts of false statements relating to health care matters, one count of conspiracy to pay and receive health care kickbacks and one count of payment and receipt of health care kickbacks.
At trial, the jury heard that from approximately 2009 through 2012, Dailey was a physician specializing in family practice in Houston and defrauded Medicare by authorizing Medicare beneficiaries for home health care when such services were not needed. The evidence at trial demonstrated Dailey conspired with a home health care owner here in Houston and agreed to sign Medicare authorization forms certifying services in exchange for a monthly flat fee from the home health owner. Dailey signed hundreds of authorization forms for beneficiaries that would falsely certify the patients were homebound, that home health was medically necessary and that the beneficiaries were under his care. Medicare paid the home health owner approximately $913,620 for home health services Dailey referred.
U.S. District Judge David Hittner presided over the trial and has set sentencing for June 23, 2016. At that time, Dailey faces a maximum of 10 years in federal prison as well as a possible $250,000 fine.
Previously released on bond, Dailey was remanded to custody pending sentencing.
The charges are a result of the investigative efforts of the U.S. Department of Health and Human Services -Office of Inspector General, Office of Investigations and the FBI. Special Assistant U.S. Attorney Justin Blan and Assistant U.S. Attorney Tina Ansari prosecuted the case.
Jury Convicts Mesquite Man of Trafficking in MarijuanaRead the Press Release
CORPUS CHRISTI, Texas – A federal jury in Corpus Christi has returned guilty verdicts against Edilberto Maso Diaz, 55, of Mesquite, on all counts as charged in a marijuana conspiracy, announced United States Attorney Kenneth Magidson. The jury deliberated for less than five hours today before convicted Diaz of conspiracy to possess with intent to distribute marijuana and three separate counts of possession with intent to distribute marijuana.
The conspiracy, which occurred primarily in 2013, involved more than 2,200 kilograms of marijuana.
During the two-day trial, the government presented testimony that Diaz owned a small trucking company, E & E Trucking, and conspired with others to transport marijuana within his tractor trailers concealed amongst a load of produce. One of the co-conspirators would obtain the marijuana from Mexico. Two drivers that worked for E & E Trucking would drive one of Diaz’s tractor trailers to the Rio Grande Valley to pick up a load of produce and would then proceed to another location to load the marijuana.
The government presented 10 witnesses which included testimony regarding three seizures of marijuana at the Border Patrol Checkpoint near Falfurrias - 1,110 kilograms, 348 kilograms and 815 kilograms on March 27, May 10, and Sept. 6, 2013, respectively. In each instance, law enforcement arrested the driver and seized the marijuana that was concealed in Diaz’s tractor trailers. Each seizure of marijuana was intended for delivery to the Dallas area and the proceeds shared amongst Diaz and his co-conspirators.
Senior U.S. District Judge Janis Graham Jack presided over the trial and will set sentencing at a later date. At that time, Diaz faces a minimum of 10 years and up to life in prison as well as a possible $10 million fine.
The charges are the result of an investigation conducted by the Drug Enforcement Administration. Assistant U.S. Attorneys Chad W. Cowan and Amanda Gould are prosecuting the case.
Three Sentenced for Bulk Cash SmugglingRead the Press Release
HOUSTON – Two Houston residents and one man from Brownsville have been sentenced to federal prison for their roles in the attempted smuggling of a large amount of U.S. currency. Victor Flores, 45, and José Juan Saavedra, 40, both of Houston, and Ricardo Cavazos-Garza, 51, of Brownsville, previously pleaded guilty in August 2015.
Today, U.S. District Judge Lee H. Rosenthal sentenced Flores, Cavazos and Saavedra to 30, 28 and 24 months, respectively. Each must also serve three years of supervised release following completion of their prison terms. As part of their respective plea agreements, they each agreed to forfeit their interest in two separately seized sums of cash totaling $838,460.
The money had been derived from narcotics trafficking and was destined for Mexico.
On April 27, 2015, law enforcement seized $578,420 in Edinburg. The investigation revealed it had been loaded at a residence on the 6200 block of Foxleigh in Houston. The additional sum of $260,040 was seized from that same residence the following day, which was found packaged within a void between the bed and bed liner of a pickup truck parked in the garage.
The investigation concluded that the pickup and money was destined its intended ultimate destination - Mexico. All three men were taken into custody at the time of the seizure.
All 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.
The charges are the result of a joint effort among Homeland Security Investigations, Drug Enforcement Administration, Harris County Sheriff’s Office and the Houston Police Department. Assistant U.S. Attorney Bryan Best is prosecuting the case.
Alleged Child Pornographer Deemed Danger to the Community and Ordered into CustodyRead the Press Release
HOUSTON – A 42-year-old man residing in Navasota has been detained on charges of production, transportation and possession of child pornography, announced U.S. Attorney Kenneth Magidson.
Law enforcement arrested John Allen Chumley on March 15, 2016, upon the filing of a federal criminal complaint. Today, he appeared before U.S. Magistrate Judge Dena Hanovice Palermo who found probable cause he committed the crime and that he was a danger to the community. He was ordered into custody pending further criminal proceedings.
According to the complaint, Chumley is a long-haul truck driver who transported child pornography across stateliness and even travelled with one of his victims, now a 10-year-old boy. For some time, Chumley had access to this child and allegedly photographed him with Chumley’s cellular telephone in lewd and lascivious poses in Houston and elsewhere. Chumley then distributed these images via the Internet, according to the charges.
At the hearing today, testimony was also presented that alleged Chumley is also suspected of producing child pornography of two prepubescent children in the Houston area, one of whom Chumley also allegedly molested.
If convicted, Chumley faces a minimum of 15 and up to 30 years imprisonment on the production charges, a minimum of five and a maximum of 20 years for transportation of child pornography as well as another 10-year-maximum for possessing the child pornography. All of the charges, upon conviction, also carry a possible $250,000 fine. Upon completion of any prison term imposed, he also faces a minimum of five years and up to life on supervised release and he will be required to register as a sex offender.
The charges are the result of an investigation conducted by the National Center for Missing and Exploited Children and FBI offices in Houston and Springfield, Illinois. Assistant U.S. Attorney Sherri L. Zack of the Southern District of Texas is prosecuting the case.
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Houston Physician and Another Sent to Federal Prison in Health Care Fraud ConspiracyRead the Press Release
HOUSTON - Dr. Enyibuaku Rita Uzoaga, 43, has been ordered to serve 42 months and pay restitution to Medicare and Medicaid as a result of her six convictions of health care fraud and one count of conspiracy, announced U.S. Attorney Kenneth Magidson. A federal jury sitting in Houston returned guilty verdicts Nov. 3, 2015, against Uzoaga following four hours of deliberation and a six-day trial.
Today, U.S. District Judge Ewing Werlein Jr. handed Uzoaga a 42-month sentence to be followed by three years of supervised release. She was further ordered to pay a $389,285 in restitution. In handing down the sentence, Judge Werlein noted the excessive number of vestibular tests that Uzoaga billed over an approximate four-year-period. One patient was billed for 1,200 tests after seeing Uzoaga only once. Evidence at trial showed patients only need one or two of these diagnostic tests in a lifetime.
Co-defendant Charles Harris, 55, who had pleaded guilty prior to trial, was sentenced earlier this month to 33 months in federal prison to be followed by three years of supervised release for his involvement in the Uzoaga case and two other vestibular indictments in the Southern District of Texas. In all three cases, Harris has been ordered to pay $1,500,203.72 in restitution to Medicare and $103,268.64 in restitution to Medicaid.
At trial, the jury heard that from approximately 2006 through 2010, Uzoaga, Harris and others falsely billed Medicare and Medicaid for numerous, unnecessary vestibular diagnostic tests. Some patients were billed for hundreds of tests, some for more than a 1,000. The evidence at trial showed that the testing by Harris and his employees was either not performed, not medically necessary and/or not performed by licensed individuals.
Vestibular diagnostic testing is used to diagnose a person for vertigo or dizziness. After being diagnosed, patients usually undergo physical therapy, take medication or undergo surgery as treatment.
As a result of this unlawful scheme between Harris and Uzoaga alone, Medicare and Medicaid were billed approximately $653,970 in submitted, fraudulent vestibular diagnostic claims. Medicare and Medicaid paid $389,285 on those claims.
Vestibular testing accounted for 23 percent of Uzoaga's income from Medicare and Medicaid.
At trial, Uzoaga attempted to convince the jury that she was unaware of the false billings. The jury did not believe her story and found Uzoaga guilty as charged.
Previously released on bond, Uzoaga was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future. Harris is in custody.
The charges 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. Attorney Suzanne Bradley and Assistant U.S. Attorney Tina Ansari prosecuted the case.
Two Charged with Smuggling Illegal AliensRead the Press Release
McALLEN, Texas – Federal agents executed a search warrant and two arrest warrants in Mission yesterday in an alien smuggling investigation, announced U.S. Attorney Kenneth Magidson.
On Tuesday, March 22, 2016, federal agents executed a search warrant at a residence on the 6800 block of Bagley Drive in Mission. During the search, agents arrested Jose Antonio Landin-Ortiz, 26, and Jose Alfredo Ortiz-Vega, 45, both Mexican citizens illegally residing in Mission. They are set to make initial appearances before a U.S. Magistrate judge this morning.
According to the complaint, on March 4, 2016, Border Patrol agents at the Falfurrias checkpoint found two illegal aliens hidden within the air dam of a tractor trailer that was approaching the primary inspection area. They were arrested for being in the United States unlawfully. At that time, they identified Ortiz and Landin as the individuals involved in their smuggling. Ortiz allegedly provided the illegal aliens with a cell phone to use to communicate with him. The complaint further alleges that Ortiz also took them to a truck stop and instructed both to climb into the air dam on the tractor trailer. Landin helped Ortiz with the smuggling arrangements and the aliens stayed at Landin’s house while they were waiting to be smuggled north, according to the allegations.
If convicted, both Landin and Ortiz face up to 10 years imprisonment and possible $250,000 maximum fine.
The arrests are the result of a joint investigation between Homeland Security Investigations and Border Patrol. Hidalgo County Precinct Four deputy constables assisted in the search of the residence and arrests. Assistant U.S. Attorney Joseph Leonard is prosecuting the case.
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Texas Man Sentenced for Obstructing Federal Hate Crime InvestigationRead the Press Release
Carlos Garcia, 29, was sentenced to 48 months in prison for making false statements in connection to the March 8, 2012, assault of a gay African-American man in Corpus Christi, Texas, announced Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, and U.S. Attorney Kenneth Magidson of the Southern District of Texas.
Garcia pleaded guilty in January 2016, to one count of false statements to law enforcement. The sentence was imposed yesterday by U.S. District Judge Hayden Head of the Southern District of Texas. Garcia will also serve three years of supervised release following completion of the prison term.
During his plea hearing, Garcia admitted that he made false statements to the FBI regarding the assault of a gay African-American man. Garcia denied being present during the assault, when in fact he participated in a portion of the assault.
Garcia is the third and last person to plead guilty in connection to the hate crime. Co-defendants Jimmy Garza Jr. and Ramiro Serrata Jr. were previously sentenced for their roles in the assault, each receiving 15 year sentences for their conduct.
During their pleas, Garza and Serrata admitted that they engaged in a protracted assault of a gay, African-American man because of his race and sexual orientation. Garza and Serrata admitted that they punched and kicked the man and assaulted him with various weapons, including a frying pan, a mug, a sock filled with batteries, a broom and a belt. Garza also poured bleach onto the victim’s face and into his eyes, and Garza struck the victim in the head with a handgun.
“This defendant lied about the facts of this terrible crime that violated our society’s most basic standards of human decency and dignity,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “The Department of Justice will continue to aggressively prosecute anyone who tries to obstruct justice by lying to law enforcement or covering up criminal activity.”
“Individuals who participate in hate crimes will continue to be the focus of federal criminal investigations in this district and this case illustrates that point,” said U.S. Attorney Magidson. “We simply will not tolerate the actions of anyone associated with these types of crimes, whether an active participant or one that seeks to hinder our efforts by lying, misleading or otherwise providing false information to law enforcement. This office will continue to ensure everyone is ultimately held accountable for their actions in federal court.”
This case was investigated by the FBI’s Corpus Christi Resident Agency with assistance from the Corpus Christi Police Department. It is being prosecuted by Trial Attorneys Jared Fishman and Nicholas Durham of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Ruben Perez of the Southern District of Texas.
Miami Businessman Pleads Guilty to Foreign Bribery and Fraud Charges in Connection with Venezuela Bribery SchemeRead the Press Release
HOUSTON - The owner of multiple U.S.-based energy companies has pleaded guilty to foreign bribery and fraud 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 U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) in Houston and Special Agent in Charge Rick Goss of Internal Revenue Service-Criminal Investigation’s Houston Field Office (IRS-CI).
Abraham Jose Shiera Bastidas (Shiera), 52, of Coral Gables, Florida, pleaded guilty yesterday in federal court before U.S. District Judge Gray H. Miller to one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA) and commit wire fraud and one count of violating the FCPA. Sentencing is scheduled for July 8, 2016. Four others charged in relation to the case had previously entered guilty pleas, including three foreign officials.
“The five convictions announced today hold to account bribe payors as well as the corrupt foreign officials who laundered the bribe money through the United States,” said Caldwell. “These individual prosecutions are the result of a tenacious and coordinated effort by our prosecutors and agents to unravel a complex web of bribes paid to Venezuelan officials. And they demonstrate our commitment to building cases from the ground up, instead of counting on companies and other wrongdoers to self-disclose their crimes.”
“The pleas of guilty in this case are the result of the strict enforcement of the FCPA in this district,” said Magidson. “Bribery under this law is a serious federal crime that undermines commercial and political relations around the world. This case is an example of our reach to expose this criminal conduct.”
Shiera was arrested in Miami on Dec. 16, 2015, after a federal grand jury returned an 18-count indictment against him and Roberto Enrique Rincon Fernandez (Rincon), 55, of The Woodlands.
According to admissions made in connection with Shiera’s plea, Shiera and Rincon worked together to submit bids to provide equipment and services to PDVSA through their various companies. Shiera admitted that beginning in 2009, he and Rincon agreed to pay bribes and other things of value to PDVSA purchasing analysts to ensure his and Rincon’s companies were placed on PDVSA bidding panels, which enabled the companies to win lucrative energy contracts with PDVSA. Shiera also made bribe payments to other PDVSA officials in order to ensure 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, he admitted.
“The corruption of foreign officials through bribery has a damaging impact on the stability of trade, industries and even nations,” said McElroy. “HSI and our partners will tirelessly investigate anyone who cultivates the corruption of officials abroad and bribe their way to financial gain.”
“Bribery and corruption undermines honest, free enterprise and creates an atmosphere of back room dealing that impairs the ability for honest businesses to compete,” said Goss. “IRS-CI tirelessly untangles the web of illicit transactions that lead to corrupt individuals being held accountable.”
Judge Miller also unsealed charges yesterday against four other individuals charged in connection with the investigation. In January 2016, Moises Abraham Millan Escobar (Millan), 32, of Katy, pleaded guilty under seal to one count of conspiracy to violate the FCPA for his role in the PDVSA bribery scheme. Milan was Shiera’s former employee. In December 2015, three former PDVSA officials, Jose Luis Ramos Castillo (Ramos), 38; Christian Javier Maldonado Barillas (Maldonado), 39; and Alfonzo Eliezer Gravina Munoz (Gravina), 53, all from Katy, each pleaded guilty under seal to conspiracy to commit money laundering. As part of their guilty pleas, Ramos, Maldonado and Gravina each admitted that while employed by PDVSA or its wholly owned subsidiaries or affiliates, they accepted bribes from Shiera and Rincon in exchange for taking certain actions to assist companies owned by Shiera and Rincon in winning energy contracts with PDVSA. Ramos, Maldonado and Gravina also admitted they conspired with Shiera and Rincon to launder the proceeds of the bribery scheme. Gravina also pleaded guilty to making false statements on his 2010 federal income tax return by failing to report the bribe payments he received from Shiera, Rincon and others. As part of their plea agreements, Shiera, Millan, Ramos, Maldonado and Gravina all agreed to forfeit proceeds of their criminal activity.
The indictment as to Rincon remains pending. He is charged with one count of conspiracy to violate the FCPA and commit wire fraud, one count of conspiracy to commit money laundering and seven counts of money laundering. Rincon is also charged with four counts of violating the FCPA. He was ordered detained pending trial following a detention hearing held on Dec. 18, 2015, before U.S. Magistrate Judge Nancy K. Johnson of the Southern District of Texas. The charges contained in the indictment are merely accusations, and Rincon is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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 also provided assistance.
Additional information about the department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Miami Businessman Pleads Guilty to Foreign Bribery and Fraud Charges in Connection with Venezuela Bribery SchemeRead the Press Release
The owner of multiple U.S.-based energy companies pleaded guilty yesterday to foreign bribery and fraud 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 Rick Goss of Internal Revenue Service-Criminal Investigation’s (IRS-CI) Houston Field Office made the announcement.
Abraham Jose Shiera Bastidas (Shiera), 52, of Coral Gables, Florida, pleaded guilty yesterday in federal court before U.S. District Judge Gray H. Miller of the Southern District of Texas in Houston to one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA) and commit wire fraud and one count of violating the FCPA. Sentencing is scheduled for July 8, 2016. Four others charged in relation to the case have pleaded guilty, including three foreign officials.
“The five convictions announced today hold to account bribe payors as well as the corrupt foreign officials who laundered the bribe money through the United States,” said Assistant Attorney General Caldwell. “These individual prosecutions are the result of a tenacious and coordinated effort by our prosecutors and agents to unravel a complex web of bribes paid to Venezuelan officials. And they demonstrate our commitment to building cases from the ground up, instead of counting on companies and other wrongdoers to self-disclose their crimes.”
“The pleas of guilty in this case are the result of the strict enforcement of the FCPA in this district,” said U.S. Attorney Magidson. “Bribery under this law is a serious federal crime that undermines commercial and political relations around the world. This case is an example of our reach to expose this criminal conduct.”
Shiera was arrested in Miami on Dec. 16, 2015, after a federal grand jury returned an 18-count indictment against him and Roberto Enrique Rincon Fernandez (Rincon), 55, of The Woodlands, Texas. According to admissions made in connection with Shiera’s plea, Shiera and Rincon worked together to submit bids to provide equipment and services to PDVSA through their various companies. Shiera admitted that beginning in 2009, he and Rincon agreed to pay bribes and other things of value to PDVSA purchasing analysts to ensure that his and Rincon’s companies were placed on PDVSA bidding panels, which enabled the companies to win lucrative energy contracts with PDVSA. Shiera also made 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, he admitted.
“The corruption of foreign officials through bribery has a damaging impact on the stability of trade, industries and even nations,” said Acting Special Agent in Charge McElroy. “HSI and our partners will tirelessly investigate anyone who cultivates the corruption of officials abroad and bribe their way to financial gain.”
“Bribery and corruption undermines honest, free enterprise and creates an atmosphere of back room dealing that impairs the ability for honest businesses to compete,” said Special Agent in Charge Goss. “IRS-CI tirelessly untangles the web of illicit transactions that lead to corrupt individuals being held accountable.”
Judge Miller also unsealed charges yesterday against four other individuals charged in connection with the investigation. In January 2016, Moises Abraham Millan Escobar (Millan), 32, of Katy, Texas, pleaded guilty under seal to one count of conspiracy to violate the FCPA for his role in the PDVSA bribery scheme. Millan was Shiera’s former employee. In December 2015, three former PDVSA officials, Jose Luis Ramos Castillo (Ramos), 38; Christian Javier Maldonado Barillas (Maldonado), 39; and Alfonzo Eliezer Gravina Munoz (Gravina), 53, all from Katy, each pleaded guilty under seal to conspiracy to commit money laundering. As part of their guilty pleas, Ramos, Maldonado and Gravina each admitted that while employed by PDVSA or its wholly owned subsidiaries or affiliates, they accepted bribes from Shiera and Rincon in exchange for taking certain actions to assist companies owned by Shiera and Rincon in winning energy contracts with PDVSA. Ramos, Maldonado and Gravina also admitted that they conspired with Shiera and Rincon to launder the proceeds of the bribery scheme. Gravina also pleaded guilty to making false statements on his 2010 federal income tax return by failing to report the bribe payments he received from Shiera, Rincon and others. As part of their plea agreements, Shiera, Millan, Ramos, Maldonado and Gravina all agreed to forfeit proceeds of their criminal activity.
The charges against Rincon remain pending. He is charged with one count of conspiracy to violate the FCPA and commit wire fraud, one count of conspiracy to commit money laundering, seven counts of money laundering and four counts of violating the FCPA. Rincon was ordered detained pending trial following a detention hearing held on Dec. 18, 2015, before U.S. Magistrate Judge Nancy K. Johnson of the Southern District of Texas. The charges contained in the indictment are merely accusations, and Rincon is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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 also provided assistance.
Additional information about the department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Local Doctor Convicted of Defrauding Medicare of $2.9 MillionRead the Press Release
HOUSTON – A federal jury in Houston has found two Houston men guilty of engaging in a conspiracy to defraud Medicare of $2.9 million, announced U.S. Attorney Kenneth Magidson. Dr. Leonard Kibert, 65, and Tsolak “Mike” Gevorgyan, 30, were found guilty of conspiracy and health care fraud. Kibert was also found guilty of money laundering, while Gevorgyan was convicted of paying kickbacks to marketers in return for bringing patients to the fraudulent clinic. The jury deliberated for approximately seven hours before finding both guilty as charged following 14 days of trial.
The fraudulent Medicare billing was for diagnostic testing at the New Life Sleeping & Allergy Disorder Center located on Chenevert Street in Houston, which either was never performed or was not medically necessary. Kibert owned New Life and Gevorgyan managed the clinic.
Gevorgyan paid recruiters/marketers to bring patients to the clinic.
The defendants face a maximum penalty of 10 years imprisonment for the conspiracy and each of 37 health care fraud convictions. Gevorgyan faces a maximum of five years imprisonment for the conspiracy to pay and receive kickbacks and each of the four counts of paying and receiving of kickbacks, while Kibert faces up to 10 years imprisonment for each of the three money laundering counts. All convictions also carry a possible $250,000 fine. Kibert and Gevorgyan were allowed to remain free on bond pending their sentencing.
U.S. District Judge Keith P. Ellison presided over the trial and has set sentencing for Aug. 30, 2016.
The criminal charges are the result of a joint investigation conducted by agents of the FBI, U.S. Department of Health and Human Services, Office of Inspector General, the Internal Revenue Service, Criminal Investigations and the Medicaid Fraud Control Unit of the Texas Attorney General's Office. This case will be prosecuted by Assistant United States Attorney Al Balboni and Special Assistant United States Attorney Rodolfo Ramirez.
Texas Man Sentenced for Obstructing Federal Hate Crime InvestigationRead the Press Release
CORPUS CHRISTI, Texas - Carlos Garcia, 29, was sentenced to 48 months years in prison for making false statements in connection to the March 8, 2012, assault of a gay African-American man in Corpus Christi, announced U.S. Attorney Kenneth Magidson and Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division.
Garcia pleaded guilty in January 2016 to one count of false statements to law enforcement. The sentence was imposed today by U.S. District Judge Hayden Head of the Southern District of Texas. Garcia will also serve three years of supervised release following completion of the prison term.
During his plea hearing, Garcia admitted he made false statements to the FBI regarding the assault of a gay African-American man. Garcia denied being present during the assault, when in fact he participated in a portion of the assault.
Garcia is the third and last person to plead guilty in connection to the hate crime. Co-defendants Jimmy Garza Jr. and Ramiro Serrata Jr. were previously sentenced for their roles in the assault, each receiving 15-year sentences for their conduct.
During their pleas, Garza and Serrata admitted they engaged in a protracted assault of a gay, African-American man because of his race and sexual orientation. Garza and Serrata admitted they punched and kicked the man and assaulted him with various weapons, including a frying pan, a mug, a sock filled with batteries, a broom and a belt. Garza also poured bleach onto the victim’s face and into his eyes, and Garza struck the victim in the head with a handgun.
“Individuals who participate in hate crimes will continue to be the focus of federal criminal investigations in this district and this case illustrates that point,” said Magidson. “We simply will not tolerate the actions of anyone associated with these types of crimes, whether an active participant or one that seeks to hinder our efforts by lying, misleading or otherwise providing false information to law enforcement. This office will continue to ensure everyone is ultimately held accountable for their actions in federal court.”
“This defendant lied about the facts of this terrible crime that violated our society’s most basic standards of human decency and dignity,” said Gupta. “The Department of Justice will continue to aggressively prosecute anyone who tries to obstruct justice by lying to law enforcement or covering up criminal activity.”
The charges are the result of an investigation by the FBI’s Corpus Christi Resident Agency with assistance from the Corpus Christi Police Department. Assistant U.S. Attorney Ruben Perez is prosecuting the case along with Trial Attorneys Jared Fishman and Nicholas Durham of the Civil Rights Division’s Criminal Section.
Former Professor Pleads Guilty to Child Pornography ChargesRead the Press Release
GALVESTON, Texas – A 47-year-old Galveston man formerly employed at Texas A&M University has pleaded guilty to one count each of receipt and possession of child pornography, announced U.S. Attorney Kenneth Magidson.
Matthew Irwin was employed as an associate professor for Texas A&M Galveston at the time of his arrest. He had come to the attention of law enforcement after investigators found evidence he was accessing files from a website known to contain child pornography.
Law enforcement executed a search warrant at his residence on Aug. 6, 2015, at which time they seized a laptop and various external storage media devices. The forensic examination revealed more than 4,000 images and two videos of clearly young children engaged in sexually explicit conduct. These movies and images included children under the age of 12 engaged in acts of violence. Some of the images are of known victims as identified through the National Center for Missing and Exploited Children.
Irwin admitted he downloaded child pornography from the Internet, thereby receiving and possessing the child pornography found on his computer and external storage media.
Irwin appeared before U.S. District Judge George C. Hanks Jr. today and pleaded guilty to the charges. Sentencing has been set for June 1, 2016, at which time Irwin faces a minimum of five and up to 20 years imprisonment for the receipt of child pornography as well as a maximum of 10 years on the possession charge. He also faces a possible $250,000 maximum fine.
He was permitted to remain on bond pending his sentencing hearing.
The charges are the result of an investigation by the FBI and the Pearland Police Department.
This case, prosecuted by Assistant U.S. Attorney Kimberly Ann Leo, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former Medical Center Physician Enters Guilty Plea to Child Pornography ChargesRead the Press Release
GALVESTON, Texas – A former pediatric oncologist at The University of Texas M.D. Anderson Cancer Center has pleaded guilty to receipt, access with intent to view and possession of child pornography charges, announced U.S. Attorney Kenneth Magidson.
At the time of his arrest in June 2015, Dennis Patrick Meehan Hughes, 49, of Pearland, worked at M.D. Anderson, but he is no longer employed there.
This case was initiated pursuant to a nationwide investigation known as Operation Pacifier which targeted users of a TOR network child pornography website whose primary purpose was to advertise and distribute child pornography. Following the February 2015 arrest of the primary site administrator, law enforcement was able to identify more than 1,000 U.S.-based user IP addresses. One of those addresses resolved back to the residence of Hughes.
Law enforcement executed a federal search warrant at his residence on June 5, 2015, at which time they arrested Hughes and seized his computers and other items.
Today, he appeared in federal court before U.S. District Judge George C. Hanks Jr. in Galveston, admitting he received and possessed numerous images of child pornography, to include prepubescent girls with their genitals lasciviously displayed. Some of the images also depicted young girls being penetrated, both orally and vaginally. The government also offered evidence that images of child pornography were found on his work computer as well.
In total, law enforcement discovered 329 videos and 2,693 unique images attributable to Hughes.
Judge Hanks has set sentencing for June 1, 2016. At that time, Hughes faces a minimum of five and up to 20 years for the receipt and up to 10 years for the access with intent to view and possession of child pornography as well as a possible $250,000 maximum fine. Upon completion of any prison term imposed, Hughes would also face a minimum of five years and a maximum of life on supervised release during which the court can impose a number of special conditions designed to protect the children and prohibit the use of the Internet. He would also be required to register as a sex offender.
He was permitted to remain on bond pending his sentencing hearing.
The charges against Hughes are the result of an investigation conducted by members of the Houston FBI, Pearland Police Department, Texas Department of Public Safety and the University of Texas Police Department.
This case, prosecuted by Assistant U.S. Attorney Sherri Zack, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Five Convicted in Fraud SchemeRead the Press Release
HOUSTON – A total of five people from three different states have all been convicted in a $6 million nonexistent commercial accounts receivable scheme, announced U.S. Attorney Kenneth Magidson.
Stefano Guido Vitale, 40, of Scottsdale, Arizona pleaded guilty today to all 10 counts as charged, while Alan Leschyshyn, 53, of Cave Creek, Arizona; Bree Ann Davis, 39, of Lakewood, Colorado and Tammie Roth Hanania, 58, and Edward Peter Hanania, 64, both of Folsom, California, all had previously entered their respective pleas. All were convicted of conspiring to engage a scheme to defraud and conspiracy to commit money laundering. Vitale and Leschyshyn were also convicted of eight additional counts of wire fraud.
The scheme produced approximately $6.4 million in fraudulently obtained proceeds which the defendants agreed to launder through various bank accounts. They executed the scheme to defraud by using and establishing various business entities to sell, at a discount, nonexistent commercial accounts receivable. The defendants would approach factoring companies as sellers of customized gaming vault bundles and present fabricated invoices as evidence the defendants were owed a certain amount of money for goods provided to another one of their business entities. To establish creditworthiness of these companies and to convince the factoring company the credit risk was minimal, the defendants fabricated and/or altered documents and provided them to the factoring company.
The fraud conspiracy also proved that Vitale and Leschyshyn defrauded BOKF, NA, doing business as Bank of Arizona, when they applied for and received a $1 million line of credit secured by the Export Import Bank of the United States.
The conspiracy to commit bank, mail and wire fraud carries a possible sentence of 30 years in federal prison. The money laundering and wire fraud counts each also carry a possible term of imprisonment of 20 years. Vitale will remain in custody, while the others were permitted release pending sentencing, which has been set for May 16, 2016, before U.S. District Judge Vanessa Gilmore.
The investigation leading to the charges was conducted by Internal Revenue Service - Criminal Investigation. Assistant U.S. Attorney Melissa Annis is prosecuting the case.
Bank Robbers Sent toFederal PrisonRead the Press Release
CORPUS CHRISTI, Texas – A Pearsall woman and a Lubbock man have both been ordered to prison following their convictions of one count of bank robbery, announced U.S. Attorney Kenneth Magidson today. Manuel Salas, 47, pleaded guilty Dec. 14, 2015, while Joyce Jenkins, 49, entered her plea in November 2015. Today, Senior U.S. District Judge John Rainey ordered Salas serve 90 months in federal prison. Jenkins was sentenced to a 45-month term of imprisonment last month. Both were further ordered to pay restitution and will serve three years of supervised release following their prison sentences. On March 24, 2015, law enforcement officers responded to a bank robbery at the American Bank in the 4100 block of S. Alameda in Corpus Christi. After entering the bank, Salas displayed a black handgun and demanded money from the teller. After receiving the money, Salas left the bank in a vehicle driven away by Jenkins. During the investigation, agents were able to identify several area bank robberies involving both defendants. In federal custody since their arrests, Salas and Jenkins will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be designated in the near future. The charges stem from an investigation by the FBI and the Corpus Christi Police Department. Assistant U.S. Attorney Lance Watt prosecuted the case.Sex Offender “Babysitter” Sentenced to 50 Years for Producing Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – A 43-year-old resident of Aransas Pass has been ordered to federal prison following his conviction of sexual exploitation of a child, otherwise known as production of child pornography, announced U.S. Attorney Kenneth Magidson. Daniel Benson Billman Jr., pleaded guilty to the charges Jan. 4, 2016.
Today, Senior U.S. District Judge Janis Graham Jack handed Billman a sentence of 600 months in federal prison. Billman was further ordered to serve the rest of his life on supervised release, during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. He will also be ordered to register as a sex offender and must pay $8000 in restitution. In handing down the sentence, Judge Jack told Billman that if she could have given him more time, she would have done so.
At today’s hearing, the court heard an impact statement from the victim’s mother. In the statement, the victim’s mother detailed how the crime had affected her daughter and family. Additional information was also presented including the fact that Billman had 14 previous criminal convictions. Of those, five were for failing to register as a sex offender. The court also heard testimony from a Homeland Security Investigations (HSI) agent who explained that authorities discovered text messages between Billman and a woman who had an 11-year-old daughter. In the text messages, Billman requested nude photographs of the child, instructed the woman on how to take the photographs and instructed her on how to groom the child in order to entice her into having sex with Billman.
At the time of his plea, Judge Jack heard that authorities had learned of a possible sexual assault involving a seven-year-old child in August 2015. The child was soon identified, confirmed the abuse and that Billman was the man who committed the crime.
Authorities executed a search warrant at Billman’s residence and seized a cellular telephone. Forensic examination led to the discovery of three images and one video of the child involved in sexual explicit conduct. Authorities also located over 1,000 images of child pornography. The images depicted infants and toddlers involved in sexual explicit conduct. Many of the images included bondage with the use of rope and duct tape as well as bestiality.
Billman admitted he sexually-assaulted the child and took explicit photographs and video of the incident.
Billman and his girlfriend had placed an ad on craigslist offering babysitting services. The victim’s mother answered the ad and the girlfriend was supposed to care for the children. Instead, Billman sexually assaulted the seven-year-old girl in a hotel and in his girlfriend’s Ford Explorer. He also recorded the crime.
Billman 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 were the result of an investigation conducted by HSI and the Aransas Pass Police Department with the assistance of the Corpus Christi Police Department - Internet Crimes Against Children Task Force.
This case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Previously Deported Mexican Citizen Heads to Prison for Possession of Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – A 33-year-old Mexican citizen caught entering the U.S. illegally has been ordered to federal prison following his conviction of possessing child pornography, announced U.S. Attorney Kenneth Magidson. Jesus Hernandez-Ramos pleaded guilty Jan. 4, 2016.
Today, Senior U.S. District Judge Janis Graham Jack handed him a sentence of 86 months in federal prison to be followed by a lifetime of supervised release. Hernandez-Ramos will also be ordered to register as a sex offender. As an illegal alien, he is expected to face deportation proceedings following his release.
Hernandez-Ramos was apprehended in April 2014 by Border Patrol agents as part of a group of people that were being smuggled into the U.S. When questioned, Ramos admitted to being here illegally. At the time of his arrest, authorities seized a cellular telephone from Ramos. Forensic analysis of the device ultimately revealed more than 980 images and 35 videos of child pornography.
Many of the images also depicted infants.
Ramos was arrested on the federal charges in November 2015 and has been in custody since the time where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future
The charges were the result of an investigation conducted by Homeland Security Investigations with the assistance of the Duval County Sherriff’s Office, Border Patrol and the Corpus Christi Police Department – Internet Crimes Against Children Task Force.
This case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Fugitive Felon Sent to Federal Prison for Gun and Drug PossessionRead the Press Release
CORPUS CHRISTI, Texas – A previously convicted felon has been ordered to serve 10 years in federal prison following his convictions for illegally possessing a firearm and methamphetamine, announced U.S. Attorney Kenneth Magidson. Doroteo Ray Garcia, 38, of Corpus Christi, pleaded guilty to the charges Sept. 28, 2015.
Today, U.S. District Judge Nelva Gonzales Ramos sentenced Garcia to 120 months on each count of conviction to beserved concurrently. The sentence will be immediately followed by five years of supervised release.
In 2012, Garcia was convicted of a federal felony narcotics charge. Following his release from prison, he was to serve three years of supervised release. When he failed to follow all of the conditions of that release a warrant was issued for his arrest.
On May 6, 2015, members of the U.S. Marshals Service (USMS) - Violent Fugitive Task Force attempted to serve that warrant and observed him driving a silver Ford pickup in Corpus Christi. The Corpus Christi Police Department (CCPD) pulled in behind Garcia’s vehicle and activated their emergency lights, at which time Garcia accelerated and attempted to evade the officers. A high speed chase ensued. Garcia eventually left the roadway and his pickup became stuck in loose sand. When he was taken into custody, Garcia had a pair of “brass knuckles” in his pocket and officers observed a Lorcin pistol behind the center console within easy reach of the driver’s seat. Officers also discovered several small plastic bags containing methamphetamine inside the truck.
Garcia will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges were the result of an investigation by CCPD, Bureau of Alcohol, Tobacco, Firearms and Explosives, USMS and the Drug Enforcement Administration. The case is being prosecuted by Assistant U.S. Attorney Robert D. Thorpe Jr.
Weslaco Man Heads to Prison for Trafficking MarijuanaRead the Press Release
LAREDO, Texas – Santiago Martinez, 39, of Weslaco, has been ordered to prison for 10 years following his conviction of conspiracy to possess with the intent to distribute in excess of 1,000 kilograms of marijuana, announced United States Attorney Kenneth Magidson. Martinez pleaded guilty April 3, 2014.
Today, U.S. District Judge Marina Garcia Marmolejo, who accepted the guilty plea, handed Martinez a 120-month sentence to be immediately followed by five years of supervised release. The court also ordered that the judgment reflect that an order of forfeiture was entered against Martinez in the amount of $11,555,000 which was based on the amount of marijuana transported by the organization during the span of the conspiracy.
A Laredo grand jury returned an indictment Dec. 3, 2013, which alleged Martinez acted as a leader and organizer within a drug trafficking organization that purchased and transported marijuana from the United States-Mexico border to regional distributors in Memphis, Tenn., and Tampa, Fla.
According to court documents, the organization used “low boy” trailers and recreational camping trailers with hidden compartments to transport the marijuana, in 300 to 500 kilogram loads, twice per month. Proceeds from the sale and transportation of this marijuana were collected and sent back to South Texas. These proceeds were placed in hidden compartments in tractor trailers or recreational camping trailers or were deposited into numerous bank accounts.
Since 2001, law enforcement has seized more than 3,500 kilograms of marijuana and more than $1.3 million tied to this drug trafficking organization. The largest seizure of marijuana occurred on Jan. 7, 2011, at which time two tractors, hauling trailers, arrived approximately one hour apart at the U.S. Border Patrol checkpoint on Highway 1017 east of Hebbronville. Inside hidden compartments in the trailers, agents found more than a 1000 kilograms of marijuana. One tractor was headed to Memphis and the other to Tampa.
The largest cash seizure occurred on Aug. 4, 2012, in Florida when law enforcement officers found seven bundles of money, totaling $831,539 in a lead-lined hidden compartment in a camping trailer.
Martinez admitted he purchased marijuana and arranged for its transportation and that a number of the vehicles used by this organization were titled in his name. Martinez further admitted he conspired to move more than 10,000 kilograms of marijuana.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future
The case is being investigated by the Drug Enforcement Administration with the assistance of the FBI. Former Assistant United States Attorney (AUSA) Elizabeth R. Rabe prosecuted the case. AUSA Toni L. Trevino handled the sentencing today.
Local Man Who Engaged in Sexually Explicit Conversations on Facebook Sent to PrisonRead the Press Release
McALLEN, Texas – A 61-year-old man has been ordered to prison following his conviction of one count of receipt of child pornography, announced U.S. Attorney Kenneth Magidson. Dennis Ray Frank, of Edcouch, admitted he engaged in inappropriate conversations with a minor female and received a sexually graphic image via email on Nov. 30, 2015.
Today, U.S. District Judge Randy Crane took into consideration the familial relationship and position of trust that Frank held over the minor and handed the defendant a sentence of 156 months in federal prison. Additional information was also presented today, including testimony from an FBI special agent who was able to describe the graphic nature of the sexually explicit conversations involved. Through the use of the Facebook messaging system, Frank chatted with the minor victim for more than two months and discussed topics which included the performance of sexual acts. The Facebook chat messages eventually escalated to discussions regarding plans to have sex with the minor victim during a visit to the Nudist Resort where Frank resided. Testimony also established that Frank engaged the minor victim on web-camera devices in which, on one particular occasion, the defendant masturbated within view of the camera.
Frank was further ordered to pay restitution to the victim in the amount of $2,520 for counseling services and will serve the remainder of his life on supervised release following completion of his prison term. During that 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.
On Feb. 7, 2013, FBI agents received information from the National Center for Missing and Exploited Children that indicated a young female could be a potential victim of sexual exploitation. Law enforcement soon uncovered the fact that Frank had engaged the minor female child in sexually explicit conversations on Facebook. Upon further investigation, it was determined that Frank had enticed the minor female child to send sexually graphic images of her genitalia to him via email.
Law enforcement executed a search warrant on Frank’s email account, at which time they discovered the image that depicted the minor child’s genitalia. Frank admitted to receiving the child pornography image via his email account on Nov. 5, 2012. He further admitted he had been engaging in those inappropriate conversations and that the young girl had sent him the image.
Frank will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges are the result of an investigation conducted by the FBI.
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."
Kingsville Man Heads to Prison for Possessing Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – Robert Wayne Collins, 63, has been ordered to federal prison following his conviction on one count of possession of child pornography, announced U.S. Attorney Kenneth Magidson. Collins, of Kingsville, pleaded guilty Dec. 1, 2015.
Today, U.S. District Judge Nelva Gonzales Ramos handed Collins a sentence of 84 months. Collins was further ordered to pay a $17,500 fine five years of supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. He will also be ordered to register as a sex offender.
At the time of his plea, the court heard that authorities, 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 Collins.
In January 2015, agents executed a search warrant at Collin’s residence, at which time they seized various electronic devices. Forensic analysis on those devices revealed more than 90 images and approximately 160 videos of child pornography. Collins admitted to using the peer-to-peer software to download child pornography.
Collins was arrested on a bond revocation warrant in November 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.
Homeland Security Investigations investigated with the assistance of the Corpus Christi Police Department—Internet Crimes Against Children Task Force.
This case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."