Southern District of Texas
Press releases recorded for this federal judicial district.
Father and Son Indicted for String of Robberies Including Garden Oaks Post OfficeRead the Press Release
HOUSTON – Two men have been charged in a seven-count indictment for their roles in a spree of Houston-area robberies committed within the span of one week in January 2016, announced U.S. Attorney Kenneth Magidson.
Joe Robert Martinez, 40, of Houston, and his son, Joe Robert Martinez, 21, of Hockley, were indicted March 3, 2016. The elder Martinez was already in custody, but the son was arrested today. Both are expected in federal court before U.S. Magistrate Judge Frances Stacy tomorrow at 10:00 a.m.
Both are accused of conspiracy to interfere with commerce by robbery, aiding and abetting interference with commerce by robbery and aiding and abetting the use of a firearm during the commission of a crime of violence.
The elder Martinez was previously charged by complaint for the Jan. 28, 2016, armed robbery of the Garden Oaks Post Office located at 3816 North Shepherd in Houston. During the course of the investigation, law enforcement discovered additional robberies allegedly involving him and his son. Specifically, both defendants have been charged with the armed robberies of Taqueria Launica #3 at 10900 Beechnut on Jan. 21, 2016, and Timewise Foodstores #107 at 3316 Crosstimbers on Jan. 26, 2016. The elder Martinez is the only defendant charged in the Garden Oaks post office robbery.
The indictment alleges the father and son interfered with interstate commerce by robbery at each of these business locations. As part of the conspiracy, one or more co-conspirators would enter the store, display a firearm and take by threat of force cash, cigarettes and personal property of employees.
For the charges of conspiracy and interference with commerce by robbery, both face up to 20 years in prison. If convicted of brandishing a firearm during a crime of violence they also face a minimum of seven years which must be served consecutively. If convicted of any additional firearms charges, they would also face another mandatory consecutive sentence of 25 years in prison.
The charges are the result of an investigation conducted by the U.S. Postal Inspection Service, in conjunction with the Houston Police Department. Assistant U.S. Attorneys Joe Porto and Heather Winter 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.Dinner Cruise Ship Captain Arrested for Using Stolen IdentityRead the Press Release
HOUSTON – A ship captain for Majestic Ventures, Majestic Dinner Cruises and Majestic Yacht Charters dinner cruise lines has been arrested on charges of using a stolen identity for more than 20 years, announced U.S. Attorney Kenneth Magidson.
Cynthia Lyerla, 52, of League City, allegedly used the identity of Christina White to obtain driver’s licenses, passports, mariner licenses and Transportation Security Administration (TSA) documentation allowing her to enter secure port areas. Without a mariner license and TSA documentation, Lyerla would not be allowed to captain the ships for the dinner cruise companies.
Lyerla was charged in a four-count indictment returned under seal on March 8, 2016, and unsealed today. She was taken into custody this morning and is expected to make her initial appearance before U.S. Magistrate Judge Frances H. Stacy at 2:00 p.m.
The indictment alleges Lyerla used the identity of Christina White, who passed away in 1965. She is charged with aggravated identity theft, false statements in a passport application, unlawful use and possession of a mariner license and unlawful use by false personation of a transportation worker identification credential.
According to the indictment, Cynthia Lynn Knox was born in 1964, later married Harold Lyerla and took his name. The marriage ended when Harold Lyerla was murdered in 1988 in Lompoc, California. Although another individual was convicted for that crime, Lyerla’s fingerprints were taken by the local police in the course of the investigation.
Since that time, Lyerla has allegedly used the identity of Christina White to obtain driver’s licenses, passports, mariner’s licenses and TSA documentation allowing her access into secure port areas. In applying for those documents, she not only used the name Christina White, but also provided Christina White’s date of birth, place of birth, Social Security number and parents’ names, according to the charges.
The indictment alleges her true identity was confirmed after her fingerprints were taken in connection with a mariner license application.
If convicted, she faces up to 10 years in federal prison.
The charges were the result of an investigation conducted by the Department of State - Diplomatic Security Service and U.S. Coast Guard Investigative Service. Assistant U.S. Attorney Adam Goldman 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.
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.
Laredo Man Sentenced on Firearms ChargeRead the Press Release
LAREDO, Texas – Ricardo Alberto Chaires, 34, has been ordered to federal prison following his conviction of possession of a firearm by a convicted felon, announced U.S. Attorney Kenneth Magidson. The Laredo resident pleaded guilty Nov. 18, 2015.
Toda, U.S. District Judge Marina Garcia Marmolejo ordered he serve 41 months in federal prison.
On Aug. 30, 2015, law enforcement received a 911 call reporting shots fired from a passenger vehicle and reported to a residence on the 600 block of Valeria Loop. As they approached the residence, officers encountered Chaires driving a vehicle matching the description provided by various callers. Officers attempted to stop him, but Chaires refused and a high-speed chase ensued along Interstate Highway 83. The vehicle swerved in and out of lanes and drove on the shoulder to avoid apprehension, finally stopping on South Bartlett Avenue.
Within the vehicle, officers found a high-capacity, 60-round magazine for the rifle, loaded with a few rounds. They also discovered at least one expended round and an unfired round on the floor in the driver’s side and several loaded rounds scattered on the floor of the front passenger side. Chaires admitted to federal agents that although he knew it was against federal law for him to possess a firearm or ammunition, he had been compelled to acquire one illegally for personal protection. He refused to explain, however, what he was doing in the area with the loaded firearm.
Officers had also learned that someone had thrown a rifle out of the vehicle in a grassy area near the Border Patrol Station in South Laredo and responded to the scene. They soon recovered an AR-15 rifle, containing a single loaded round which was ready to fire.
Chaires has been in custody since his arrest where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation leading to the charges was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the Laredo Police Department. Assistant U.S. Attorney Jose Homero Ramirez prosecuted the case.
Laredo Man Sentenced on Firearms ChargeRead the Press Release
LAREDO, Texas – Ricardo Alberto Chaires, 34, has been ordered to federal prison following his conviction of possession of a firearm by a convicted felon, announced U.S. Attorney Kenneth Magidson. The Laredo resident pleaded guilty Nov. 18, 2015.
Toda, U.S. District Judge Marina Garcia Marmolejo ordered he serve 41 months in federal prison.
On Aug. 30, 2015, law enforcement received a 911 call reporting shots fired from a passenger vehicle and reported to a residence on the 600 block of Valeria Loop. As they approached the residence, officers encountered Chaires driving a vehicle matching the description provided by various callers. Officers attempted to stop him, but Chaires refused and a high-speed chase ensued along Interstate Highway 83. The vehicle swerved in and out of lanes and drove on the shoulder to avoid apprehension, finally stopping on South Bartlett Avenue.
Within the vehicle, officers found a high-capacity, 60-round magazine for the rifle, loaded with a few rounds. They also discovered at least one expended round and an unfired round on the floor in the driver’s side and several loaded rounds scattered on the floor of the front passenger side. Chaires admitted to federal agents that although he knew it was against federal law for him to possess a firearm or ammunition, he had been compelled to acquire one illegally for personal protection. He refused to explain, however, what he was doing in the area with the loaded firearm.
Officers had also learned that someone had thrown a rifle out of the vehicle in a grassy area near the Border Patrol Station in South Laredo and responded to the scene. They soon recovered an AR-15 rifle, containing a single loaded round which was ready to fire.
Chaires has been in custody since his arrest where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation leading to the charges was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the Laredo Police Department. Assistant U.S. Attorney Jose Homero Ramirez prosecuted the case.
Houston Woman Heads to Federal Prison for Defrauding Former EmployerRead the Press Release
HOUSTON – A former employee of United Transport Tankcontainers Inc. (UTT) has been ordered to federal prison following her conviction of wire fraud, announced U.S. Attorney Kenneth Magidson. Marcella Jones aka Marcella Jones-Hatch, 45, of Houston, pleaded guilty Oct.6, 2015, admitting she caused a loss of nearly $1.8 million to her former employer.
Today, U.S. District Judge David Hittner, who accepted the guilty plea, handed Hatch a 78-month sentence to be immediately followed by three years of supervised release. She was further ordered to pay $1,796,945.67 in restitution. In handing down the sentence, Judge Hittner noted the defendant’s prior criminal history.
Hatch was hired in the accounting department at UTT in 2007. As part of her plea, she admitted that between July 2008 and August 2014, she executed a scheme to defraud her former employer. As part of her scheme, she created fraudulent payment requests and submitted them to UTT. As a result, the company then sent the payments to her personal bank account which she used for her own personal benefit. The estimated total losses to UTT as a result of the scheme was $1,796,945.67.
Hatch 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 Secret Service. Assistant U.S. Attorney John Braddock is prosecuting the case.
Houston Woman Heads to Federal Prison for Defrauding Former EmployerRead the Press Release
HOUSTON – A former employee of United Transport Tankcontainers Inc. (UTT) has been ordered to federal prison following her conviction of wire fraud, announced U.S. Attorney Kenneth Magidson. Marcella Jones aka Marcella Jones-Hatch, 45, of Houston, pleaded guilty Oct.6, 2015, admitting she caused a loss of nearly $1.8 million to her former employer.
Today, U.S. District Judge David Hittner, who accepted the guilty plea, handed Hatch a 78-month sentence to be immediately followed by three years of supervised release. She was further ordered to pay $1,796,945.67 in restitution. In handing down the sentence, Judge Hittner noted the defendant’s prior criminal history.
Hatch was hired in the accounting department at UTT in 2007. As part of her plea, she admitted that between July 2008 and August 2014, she executed a scheme to defraud her former employer. As part of her scheme, she created fraudulent payment requests and submitted them to UTT. As a result, the company then sent the payments to her personal bank account which she used for her own personal benefit. The estimated total losses to UTT as a result of the scheme was $1,796,945.67.
Hatch 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 Secret Service. Assistant U.S. Attorney John Braddock is prosecuting the case.
Humble Fugitive Sought on Charges of Production of Child PornographyRead the Press Release
HOUSTON – Moises Valdez, 41, of Humble, has been charged in a criminal complaint with production of child pornography, announced U.S. Attorney Kenneth Magidson. Agents were unable to arrest him today and a warrant remains outstanding for his arrest.
On Jan. 29, 2016, FBI agents executed a federal search warrant at the residence of Valdez. At the time of execution, FBI agents seized a laptop as well as a desktop computer located within a bedroom belonging to Valdez, according to the complaint.
On March 2, 2016, the complaint alleges that FBI agents began the forensic review of those items and found approximately 75 images and more than 180 videos of child pornography. Additionally, agents also allegedly found one particular video that appeared to be taken from a cellular phone which agents believed was produced by Valdez. Agents believed that this video was of an underage female who appeared to be under the age of 10, being vaginally penetrated by an adult male penis, according to the complaint. Also depicted in the video was an adult male’s fingers that can be seen spreading open the vagina of the child who appears to be unconscious throughout the sexual assault, according to the charges.
Agents were able to identify the bedroom as that of belonging to Valdez, according to the complaint.
On March 8, 2016, agents contacted and interviewed Valdez’ wife who allegedly identified the child depicted in the video as a minor female who would have been under the age of five at the time of the assault. The wife was further able to identify body parts of Valdez that were seen in the video, according to the complaint.
Valdez is considered a fugitive and a warrant remains outstanding for his arrest. If anyone has information about his whereabouts, they are asked to contact the FBI at 713-693-5000.
The charges are the result of investigation conducted by the FBI.
If convicted, Valdez faces a minimum of 15 and up to 30 years in federal prison.
This case, being prosecuted by Assistant U.S. Attorney Kimberly Ann Leo, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
###
Austin Lawyer Sentenced in Relation to “Butch” Ballow Case and Stock Sale SchemeRead the Press Release
HOUSTON – Patrick Lanier, 67, of Austin, has been ordered to federal prison following his convictions on 16 counts to include one count of harboring and concealing Harris “Butch” Ballow from arrest, announced United States Attorney Kenneth Magidson. A jury convicted Lanier Feb. 27, 2014, of conspiracy to commit wire fraud arising from a stock sale scheme, 13 counts of wire fraud, one count of harboring and concealing Ballow from arrest and one count of assisting a federal offender.
At a hearing that concluded last night, U.S. District Judge Lee Rosenthal, who presided over the trial, handed Lanier a total sentence of 17 years in federal prison and further ordered him to pay $37 million in restitution. At the hearing, the judge noted the large number of victims - more than 500 - and acknowledged that one victim reported her husband committed suicide as a result of this offense. Previously released on bond, the court ordered he be immediately taken into custody following the hearing.
Lanier is an Austin attorney who represented Ballow during proceedings before the Securities and Exchange Commission (SEC) in 2004 and also during the criminal case that led to Ballow becoming a fugitive. While a fugitive, Ballow controlled a corporation used to bilk hundreds of investors, many of whom lived in Canada, out of millions of dollars. Lanier served as a lawyer for that corporation.
Evidence demonstrated at the 13-day trial, proved Lanier assisted Ballow in selling shares of stock in public companies acquired and controlled by Ballow while he was a fugitive from justice. Assisted by Lanier, Ballow and co-conspirators sold stock to unsuspecting investors by hiding Ballow’s true identity, disseminating false and misleading information to increase and maintain the value of stock, failing to fulfill promises to remove restrictions which prevented investors from selling the stock and selling land and ownership interests in a real estate development that never materialized.
Ballow was a fugitive from justice in the United States for more than five years. He was indicted in federal court in Houston in 2003 for fraud and money laundering which centered on misrepresentations made in connection with the purchase and sale of stock. Ballow pleaded guilty before U.S. District Judge David Hittner to money laundering in November 2003 and faced a maximum of 10 years imprisonment. At the time, Ballow, who had been in custody without bond for approximately a year, agreed to cooperate with an SEC investigation and was released on a $100,000 bond pending his sentencing. On Dec. 16, 2004, the day of sentencing, Ballow failed to appear and a warrant was soon issued for his arrest. Ballow was arrested by Mexican authorities on July 13, 2010, in Nuevo Vallarta, Mexico, and extradited by Mexico to the United States on April 8, 2011. He was later sentenced to 10 years for money laundering and ordered to pay $10 million in restitution.
According to evidence presented in Lanier’s trial, Ballow lived under the names John Gel, Tom Brown and Marty Twinley during his time as a fugitive and also acquired a British passport in the name of Melvyn John Gelsthorpe. Ballow used these names to take control of publicly-traded corporations, including E-SOL International Corp., Medra Corp., Deep Earth Resources Inc. and Aztec Technology Partners Inc. (now known as Ultimate Lifestyles Corporation) and sold the stock to investors without revealing his true identity, his use of multiple names, his past convictions for fraud and money laundering and his status as fugitive from justice in the United States. After Ballow fled, Lanier traveled to Mexico to meet him and provided legal work for Ballow under his various false names to consummate Ballow’s fraudulent transactions to bilk investors.
Christopher Harless, 62, of Georgetown, pleaded guilty to one count of conspiracy to commit wire fraud and was sentenced on Nov. 24, 2015, to 20 years in prison. Also on that date, Sikiru Olubunmi Bonojo, 45, a citizen of Nigeria residing in Houston, received a 63-month sentence for laundering proceeds of the fraud scheme. Clarence Hudgens, 59, of Lebanon, Oregon, and James David Wright, 60, of Corinth, both pleaded guilty to the wire fraud conspiracy and are scheduled to be sentenced by Judge Rosenthal on May 5, 2016, while Ruben Garza Perez, 55, a dual U.S.-Mexican citizen formerly of Houston, pleaded guilty to the same charge and is set for sentencing before U.S. District Judge Ewing Werlein Jr. on Aug. 12, 2016. Jeffrey Janssen Anuth, 57, is in custody in Mexico, while the other alleged co-conspirators are considered fugitives.
Ballow, 73, is currently serving his previously-imposed 10-year sentence, but faces additional charges in the form of an 87-count indictment pending before Judge Werlein. He is presumed innocent on that matter unless and until convicted through due process of law.
The case was jointly investigated by the United States Marshals Service and the FBI with substantial assistance of Internal Revenue Service - Criminal Investigation and the U.S. Postal Inspection Service. Valuable assistance was also provided by the Royal Canadian Mounted Police. Assistant U.S. Attorneys John R. Lewis and Belinda Beek are prosecuting the cases.
Weslaco Man Sentenced for Child Pornography ConvictionsRead the Press Release
McALLEN, Texas – Raul Casarez, 35, of Weslaco, has been ordered to prison following his conviction on one count of production of child pornography and one count of receipt of child pornography, announced U.S. Attorney Kenneth Magidson along with Special Agent in Charge Shane Folden of Homeland Security Investigations (HSI) - San Antonio. Casarez pleaded guilty Sep. 21, 2010.
Today, Chief U.S. District Judge Ricardo H. Hinojosa imposed a 20-year sentence which will be immediately followed by five years of supervised release. The court also ordered a total of $9,500 in restitution for all of the identified victims in the case. Additionally, Casarez will be ordered to register as a sex offender for the rest of his life.
At a previous hearing, the court heard testimony concerning the familial relationship the defendant had to the victims involved in the child pornography production. Testimony established that Casarez sexually exploited four young relatives that considered him to be the “fun” relative. Furthermore, the court heard how the defendant had preyed on his younger relatives for several years dating back to the mid-90s and up until the date of his arrest in 2009.
On Sept. 30, 2009, an agent with Homeland Security Investigations (HSI) began an Internet investigation to identify persons using peer-to peer software to traffic in child pornography and soon discovered a specific computer as offering to participate in the distribution of child pornography movies. Casarez was identified as the person linked to that computer.
Agents executed a search warrant of his residence and seized computers and various external storage media. The forensic examination of the items revealed more than 4,000 child pornographic images and more than 400 child pornographic movies of clearly young children engaged in sexually explicit conduct. The images include children under the age of 12, bondage and acts of violence. Some of the images are of known victims as identified through the National Center for Missing and Exploited Children.
Casarez admitted he downloaded child pornography from the Internet and that he was in possession of child pornography on his computer.
The forensic examination also revealed three photographs or visual depictions of a young pre-pubescent girl stored on the computer’s hard drive. The photographs depicted her in a pose considered to be sexually explicit conduct.
The pictures were taken by a Samsung cell phone and uploaded to Casarez’s computer.
This case, investigated by HSI and prosecuted by Assistant U.S. Attorneys Kimberly Ann Leo, Juan Alanis, and Alex Benavides, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Houstonians Plead Guilty in $13 Million Health Care Fraud CaseRead the Press Release
HOUSTON – The leader and four others charged in a $13 million Medicare and Medicaid health care fraud case have entered guilty pleas for their respective roles, announced U.S. Attorney Kenneth Magidson.
Mkrtich “Mike” Yepremian, 58, of Houston, pleaded guilty to conspiracy to commit health care fraud and paying kickbacks to marketers of Medicare and Medicaid patients. Also pleading guilty today was Bompa Mbokoso Mompiere, 56, of Houston, who also pleaded to the conspiracy.
Over the last few weeks, three others have also been convicted - Mike Wilson, 47, Jermaine Doleman, 38, and Eric Johnson, 62, all of Houston. They pleaded guilty to the conspiracy and to committing health care fraud.
According to the factual basis in support of the plea, Yepremian ran several false clinics in Houston and Conroe. Yepremian paid marketers, including Wilson, Doleman and Johnson, to bring patients to the clinics for a battery of diagnostic tests and blood work, regardless of medical need. Yepremian paid the marketers approximately $100 for each patient brought to his clinics. In turn, the marketers paid the patients approximately $50 each.
Mompiere was an unlicensed foreign medical graduate who saw patients at Yepremian’s clinics. He also would go into the city and assist in drawing blood from Medicare and Medicaid patients at various home health businesses. Yepremian would bill Medicare and Medicaid for unnecessary blood work and would, in turn, get authorizations for home health care signed by physicians who worked at the clinics.
As a result of this scheme, Medicare and Medicaid were billed approximately $13 million and paid out approximately $9 million in false claims. Yepremian has also agreed to forfeit real estate and some commercial trucks as part of his plea agreement.
The statutory maximum penalty for a violation of the conspiracy statute or for health care fraud is up to 10 years in prison and a possible $250,000 maximum fine. If convicted of paying kickbacks, Yepremian faces an additional five years in prison and a $25,000 fine.
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 United States Attorney Suzanne Bradley and Trial Attorney Scott Armstrong are prosecuting the case.
7 Ordered to Federal Prison for Extensive Marijuana Grow House OperationRead the Press Release
HOUSTON – Three leaders and four others have been ordered to federal prison for their roles in a hydroponic marijuana growing conspiracy operating in and around Houston, announced U.S. Attorney Kenneth Magidson. All had previously entered guilty pleas in the case.
Dang Hai Nguyen, 37, and his wife, Carry Le, 40, both had pleaded guilty to conspiracy to possess with intent to distribute a controlled substance and each received sentences of 120 months in federal prison. Le’s brother - Son Kim Le, 42 – had pleaded to conspiracy to maintain a place of manufacturing and was sentenced to a 108-month-term of imprisonment. The court had found that these were the leaders in the organization. Nguyen coordinated the overall grow operation, while Carry Le controlled the finances. Son Kim Le worked in sales and operations.
Also sentenced today were Lam Thanh Ho, 45, who was convicted of conspiracy to maintain a place of manufacturing, Hien The Nguyen, 29, who pleaded to conspiracy to possess with intent to distribute a controlled substance and Tuan Anh Le, 42, and Tuan Anh Nguyen, 46, who both pleaded guilty to possession with intent to distribute a controlled substance. Tuan Anh Le, Tuan Anh Nguyen and Ho all received 24-month sentences, while Hien The Nguyen was ordered to serve a 34-month-term of imprisonment.
The final defendant charged in the case - Minh Quang Hoang Nguyen, 35 – will be sentenced April 8, 2016.
Law enforcement began investigating in August 2011. Shortly thereafter, law enforcement executed search warrants at three locations and seized more than 1000 marijuana plants. Further investigation led to the full scope of this hydroponic marijuana cultivation and distribution organization which was headed by Dang Hai Nguyen and his wife, Carry Le.
On May 2, 2013, agents executed search and arrest warrants at eight locations. Five of the locations were active hydroponic marijuana grow facilities that contained an aggregate of 1,754 hydroponically-grown marijuana plants. Multiple defendants had been residing at two of the other locations.
The grow houses shared common characteristics. They were uniformly equipped with covered windows to prevent light from coming in or interior lights shining out. The houses had extensive duct work located inside the grow rooms for ventilation and fans to aid air circulation and exhaust were set up and in open view throughout each of the houses. The houses had secondary, illegally installed electrical circuit boxes that bypassed the utility company’s meters, which both enabled the defendants to steal electric current and also prevented the utility provider from noticing the excessively high power consumption that indoor marijuana cultivation requires.
The houses exhibited an overwhelming marijuana odor and high-intensity grow lights could be easily seen hanging directly above the growing plants. Anyone entering the locations could easily know what was occurring inside.
Only insiders were permitted to enter the houses. Generally, the director or overseer of a particular grow house would pay for the expenses associated with that house’s operation and the salary of the house’s “tender.” Tenders received a salary of $1000-$2000 with a possible bonus after harvest. Alternatively, the tenders might receive a lump sum percentage of 35% of the proceeds and an additional 15% if the house was leased in his/her name.
Co-conspirators often assisted one another by converting leased residences into grow houses, providing training and instruction on tending the plants, arranging for delivery of products or equipment necessary for cultivation and dismantling grow houses, among other things.
Carry Le, Minh Quang Hoang Nguyen, Son Kim Le and Tuan Anh Le were utility subscribers for four of the houses. Hien The Nguyen, Minh Quang Hoang Nguyen and Ho tended grow houses and assisted with purchasing and distributing supplies among the houses. Tuan Anh Le and Tuan Anh Nguyen also tended the houses.
The charges were the result of an investigation conducted by the Drug Enforcement Administration, Texas Department of Public Safety, sheriff’s offices in Harris and Ft. Bend Counties and the Houston Police Department. Assistant U.S. Attorney Michael Kusin is prosecuting the case.
Two Women Head to Prison for Distribution of MethamphetamineRead the Press Release
BROWNSVILLE, Texas – Crystal Yvette Martinez, 25, and Tina Marie Trevino, 24, both of Brownsville, have been ordered to federal prison following their convictions related to the distribution of methamphetamine, announced U.S. Attorney Kenneth Magidson. Martinez was convicted Nov. 19, 2014, following a two-day trial, while Trevino pleaded guilty Nov. 5, 2014.
Today, U.S. District Judge Hilda Tagle ordered Martinez to serve 240 months in federal prison, while Trevino will serve a 75-month-term of imprisonment. Both will also serve five years of supervised release following completion of their sentences.
On or about May 19, 2014, Martinez was a passenger in a black Chevy Tahoe driven by Trevino. The two females presented themselves at the B & M International Port of Entry in Brownsville with a large quantity of Downy fabric softener bottles and Zote soaps. Trevino told officers that the fabric softener and soaps were for a laundromat business she was starting.
The vehicle and occupants were sent to secondary inspection where a canine alerted to the presence of narcotics. Customs and Border Protection (CBP) officers field tested the contents of the bottles and the soaps which yielded a positive result for the properties of methamphetamine. The total weight of the substances was approximately 115.94 kilograms or 255 pounds.
Trevino admitted she was aware she was bringing an illegal drug into the United States, while Martinez denied that knowledge. However, a CBP officer testified that the two females were seen crossing the same type of merchandise (fabric softener and soaps) the prior evening of May 18, 2014. Trevino admitted that the trip the night before was a dry-run to determine how inspectors at the port of entry would react. Trevino testified at trial that both women were aware they were bringing in drugs and that they both would share in the profits of $5,000 for the trip.
The jury ultimately returned a verdict of guilty against Martinez on all four counts as charged to include conspiring to possess to with the intent to import and distribution of 115 kilograms of methamphetamine.
Both women will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This charges are the result of an investigation by Homeland Security Investigations and CBP. Assistant U.S. Attorneys Ana Cano and Joe Esquivel prosecuted the case.
Two Sentenced in Identity Theft SchemeRead the Press Release
HOUSTON – Two men have been ordered to federal prison following their convictions in a scheme in which they used stolen personal information to purchase several high end vehicles in the Houston area, announced U.S. Attorney Kenneth Magidson.
Joel Cruz, 28, of Houston, and Darrion Wells, 27, of Beaumont, both pleaded to conspiracy to commit wire fraud and aggravated identity theft on May 28, 2015, and June 12, 2015, respectively.
Today, U.S. District Judge Nancy F. Atlas, who accepted the pleas, handed each man a sentence of 24 months for the conspiracy as well as an additional 24 months for the aggravate identity theft which must be served consecutively for a total of 48 months in federal prison. They were further ordered to pay $485,136.62 in restitution and must serve three years of supervised release following their release from prison.
Cruz and Ruffin, along with Devante Ruffin, 22, of Houston, have admitted they stole apartment complex leasing records to obtain the personal identifying information of the tenants. They then used that stolen information to make false driver’s licenses and other means of identification. Using that identification, they applied for loans to purchase high end automobiles at car dealerships in the Houston area.
The defendants took possession of the cars but never made payments on the fraudulently obtained loans. In total, the evidence demonstrated that they purchased 12 cars in this manner valued at approximately $480,000.
Cruz and Wells will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. Ruffin, also in custody, is scheduled to be sentenced May 3, 2016.
The charges are the result of an investigation conducted by the U.S. Postal Inspection Service and the Houston Police Department. Assistant U.S. Attorney Jay Hileman is prosecuting the case.
Robstown Man Convicted of Distributing Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – Jorge Betancourt, 37, of Robstown, has pleaded guilty to distribution of child pornography, announced U.S. Attorney Kenneth Magidson.
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 Betancourt. As a result, Homeland Security Investigations (HSI) was contacted to assist in the investigation.
In June 2015, authorities executed a search warrant at Betancourt’s residence, at which time they seized several digital devices. Forensic analysis on the digital devices revealed more than 530 videos and more than 540 images of child pornography. Betancourt admitted to using peer-to-peer software to download child pornography for approximately 11 years.
Senior U.S. District Judge Hayden Head accepted the guilty plea today and set sentencing for May 25, 2016. At that time, Betancourt 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, Betancourt 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.
Betancourt was arrested on the federal charges in October 2015 and has been in custody since that time where he will remain pending his sentencing hearing.
The charges against Betancourt are the result of an investigation conducted by the Corpus Christi Police Department-Internet Crimes Against Children Task Force with the assistance of Homeland Security Investigations.
This case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Katy Couple Indicted for Enslaving ServantRead the Press Release
HOUSTON – A federal grand jury has returned a five-count indictment against the couple who allegedly enslaved a Nigerian national for more than two years in their Katy home, announced U.S. Attorney Kenneth Magidson.
Chudy and Sandra Nsobundu, 56 and 50, respectively, are charged with forced labor, withholding documents, visa fraud, conspiracy to harbor and harboring an illegal alien and. They were originally charged by criminal complaint Feb. 4, 2016, and arrested four days later. The indictment was returned today and they are expected to make their next appearance in federal court in the near future.
According to the affidavit in support of the criminal complaint, the 38-year-old victim was subjected to physical and verbal abuse while employed by the Katy couple and regularly referred to as “the idiot.” The victim allegedly worked every day from 5:30 a.m. until 1:00 a.m. and was responsible for cleaning the house, making meals and taking care of five children. The criminal complaint alleges she was told she could not watch television or even sit down during her work hours. She was also allegedly told to sleep on the floor and could not use warm water to bathe or wash her hair. The affidavit also claims that she was not allowed to eat fresh food and was only permitted the leftovers from the previous prepared meals. Further, if the victim even wanted some milk for her tea, she would have to actually strain the milk out of the children’s cereal bowls, according to the allegations. In one instance of alleged abuse, the criminal complaint charges that Sandra Nsobundu drug the victim by her hair and hit her across her face because she did not like the socks the victim put on one of the children.
The victim did not have access to a phone and could not communicate with her family, according the charges. Her movements were mostly limited to the residence and allegedly only allowed out for short walks with the youngest children around her block. The charges outlined in the complaint indicate the victim also did not have access to her passport and other travel documents.
The defendants had previously agreed to pay the woman 20,000 Nigerian nairas - $100 U.S. dollars per month, according to the charges. The Nsobundus allegedly never paid the victim for any of her work here in the U.S.
The victim was rescued Oct. 10, 2015, after more than two years with the Nsobundus in the U.S., following a tip to the National Human Trafficking Resource Center.
The indictment also includes a notice of forfeiture of the Katy residence as property used in the facilitation of the alleged crimes.
If convicted of the conspiracy or forced labor, the defendants face up to 20 years in federal prison. For withholding documents, they face another five years, while the visa fraud and harboring illegal aliens carries a possible 10-year-sentence. All of the charges could also result in a $250,000 maximum fine.
The investigation leading to the filing of criminal charges was the result of an investigation conducted by members of the Human Trafficking Rescue Alliance in Houston, which includes Homeland Security Investigations, Fort Bend Sheriff’s Office and the Department of State - Diplomatic Security Service. Assistant U.S. Attorneys Julie N. Searle and Ruben R. Perez are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Houston Woman Heads to Prison for Stealing Labor Union AssetsRead the Press Release
HOUSTON - Cynthia Angulo, 55, has been ordered to prison following her conviction of theft from a labor union, announced U.S. Attorney Kenneth Magidson. Angulo pleaded guilty Aug. 27, 2015.
Today, U.S. District Judge Lee H. Rosenthal, who accepted the guilty plea, handed Angulo a 10-month sentence. She was further ordered to pay a $61,272.79 restitution. Angulo will also be required to serve a term of three years of supervised release following completion of the prison term. Also, as a result of the conviction, she will be prohibited from holding any union position of leadership for a period of 13 years.
Angulo served as the president of the Currency and Securities Handlers Association (CASHA) from August 2010 until December 2014.
Angulo admitted she embezzled $61,206.29 from CASHA from Nov. 1, 2010, through Dec. 12, 2014. She accomplished this theft by claiming false union expenses for herself, using the union debit card to make cash withdrawals to pay for personal expenses and withdrawing cash for her personal use from the union’s checking account. The theft of this money was done without the knowledge or approval of the executive board, or membership, of CASHA.
Angulo 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 were the result of an investigation conducted by the Department of Labor - Office of Labor-Management Standards. Assistant U.S. Attorney Glenn Cook is prosecuting the case.
Extradited Defendant Gets 40 Years for Leading Sex Trafficking RingRead the Press Release
HOUSTON – The leader of a sex trafficking ring who was indicted more than 10 years ago and later extradited from Mexico has been sentenced following his convictions on four counts of harboring illegal aliens for the purpose of prostitution, announced U.S. Attorney Kenneth Magidson. Gerardo Salazar aka El Gallo entered a plea of guilty Oct. 13, 2015, admitting to his role in smuggling minor girls and young women from Mexico into the United States and using deception, threats of harm, physical force and psychological coercion to compel their service as prostitutes in Houston area bars.
Today, U.S. District Judge Vanessa Gilmore, who accepted the guilty plea, handed El Gallo a 40-year federal prison sentence. At the hearing, the court found the defendant to be unremorseful for luring girls, some under 16, into the U.S. to work in bars and subsequently forced into prostitution. That force included beatings, threats to family members if non-compliant, forced abortions and more. He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
El Gallo, 51, of Mexico City, Mexico, was indicted in 2005 along with Mexican nationals Salvador Fernando Molina Garcia, Angel Moreno Salazar, Jose Luis Moreno Salazar, Juan Carlos Salazar and Ivan Salazar. El Gallo was the leader of the group and had been a fugitive since 2005. At that time, a warrant was issued for his arrest. He was taken into custody in 2010 and extradited to the United States in June 2014.
At their respective guilty plea hearings in 2006, the co-defendants admitted to being part of an organization that operated between early 2004 through the summer of 2005. The purpose was to recruit, entice, harbor, transport, provide and obtain young Mexican women and girls for the purpose of prostitution. They admitted they benefitted financially from participating in the venture knowing that force, fraud and coercion would be used to cause the young women and to engage in commercial sex acts. Those in the sex trafficking ring further admitted to knowing that some of the girls were under the age of 18.
The charges were the result of an investigation conducted by members of the Human Trafficking Rescue Alliance (HTRA) in Houston, which includes the FBI, Homeland Security Investigations, Harris County Sheriff’s Office, Texas Alcoholic and Beverage Commission, Texas Attorney General’s Office, Department of State, Texas Department of Public Safety and the Houston Police Department. The HTRA was formed by the United States Attorney’s office in Houston as part of a broader effort by the Department of Justice to concentrate and combine resources of our own office’s civil rights and organized crime units as well as federal, state law and local enforcement agencies and non-governmental service organizations to target human traffickers while providing necessary services to those victimized by the traffickers. The Houston HTRA was one of the first of 42 such funded organizations and the first of its kind in Texas. The mission of the HTRA is to foster the collaboration of local, state and federal law enforcement agencies with area social service organizations to identify and assist the victims of human trafficking and to effectively identify, apprehend and prosecute those engaged in trafficking offenses.
The Justice Department's Office of International Affairs provided assistance with the extradition.
Assistant U.S. Attorneys Ruben R. Perez and Joe Magliolo prosecuted the case.
14 Charged in Southern District of Texas as Part of Operation Dream CatcherRead the Press Release
HOUSTON – A total of 14 people are now in custody on methamphetamine charges in three separate cases, announced U.S. Attorney Kenneth Magidson. These arrests were part of Operation Dream Catcher which also led to the apprehension of seven and 15 more individuals in the Eastern and Western Districts of Texas, respectively.
“Methamphetamine is a vicious poison that has caused horrific and long-term damage to the quality of life in too many of our communities,” said Special Agent in Charge Joseph M. Arabit of the Drug Enforcement Administration (DEA). “These indictments and arrests, as part of Operation Dream Catcher, conclude an 18-month investigation and underscore DEA’s continued commitment to working with our Federal and local law enforcement partners to disrupt and dismantle drug trafficking organizations that negatively impact our neighborhoods and families.”
Those taken into custody included:
Jorge Rojo-Villa, 32, of Pasadena
Maria Villa, 58, Mexican national residing in Houston
Pedro Rojo, 31, of Houston
Juan Cantarero, 49, of El Salvador
Fernando Pacheco Olivo, 33, Mexican national residing in Houston
Alimid Delatorre Garcia, 54, Mexican national residing in Katy
Feliberto Pineda Duarte, 36, Mexican national residing in Humble
Marco Antonio Aparicio-Santos, 44, of Houston
Jesus Ortiz-Flores aka “Alacran,” 26, of MexicoOne defendant - Arturo Hernandez-Villegas, 50, of Mexico - was already in federal custody on other charges.
All have made their initial appearances in federal court. Hernandez-Villegas, Aparicio-Santos and Ortiz-Flores are set for a detention hearing today before U.S. Magistrate Judge Mary Milloy, while the remaining defendants will appear March 3, 2016, at 10:00 a.m.
Two additional defendants - Huber Cornejo, 30, and Osmel Serrano, 30, both Mexican nationals living in Houston – were in state custody on unrelated charges and are expected to make appearances in federal court in the near future.
Two others were arrested in Florida - Reilandis Florat, 30, and Evelio Villalba, 62. They have made their initial appearances there are expected to be transferred to the Southern District of Texas in the near future.
Rojo-Villa, Villa, Rojo and Cantarero are charged by criminal complaint with conspiracy to and possession with intent to distribute controlled substances. This case centered around the distribution of methamphetamine and cocaine in the Houston area.
In a separate criminal complaint, Olivo, Garcia and Duarte are charged with conspiracy to and possession with intent to distribute controlled substances. These charges centered around the distribution of methamphetamine in the Houston area. The criminal complaint in this case details the facts underlying the charges, some of which included drug purchases with the defendants.
In the third case, Hernandez-Villegas, Aparicio-Santos and Ortiz-Flores are charged in a six-count indictment filed Feb. 18, 2016. Each are charged with conspiracy with each defendant facing additional counts of possession with intent to distribute controlled substances.
All 14 defendants face a minimum of 10 years and up to life in prison as well as a possible $10 million fine, upon conviction.
The complaints and indictment remain sealed as to those charged but as yet in custody.
As a part of the overall operation, authorities seized more than $2 million, 279 pounds of methamphetamine, 206 pounds of cocaine and 138 pounds of heroin.
Operation Dream Catcher is the result of investigations conducted by the DEA, Houston Organized Crime Drug Enforcement Task Force - Strike Force, DEA High Intensity Drug Trafficking Area Task Force, Homeland Security Investigations, IRS-Criminal Investigation with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives; FBI; Several Divisions within the Ft. Bend County Sheriff’s Office to include the Patrol Division, SWAT and the Narcotics Task Force; Harris County Sheriff’s Office - Patrol Division; police departments in Houston, Huntsville and Pasadena; Texas Alcoholic Beverage Commission, Texas Department of Public Safety Intel; sheriff’s offices in Montgomery and Walker counties; and the Bureau of Animal Regulation and Care.
Assistant U.S. Attorneys Richard Magness and Arthur R. Jones are prosecuting the cases.
Two Former Executives of Houston-Based Oil Supply Company Plead Guilty to Fraud in Illegal Kickback SchemeRead the Press Release
Two former executives of a Houston-based oil supply company pleaded guilty today to fraud charges for their role in a scheme to secure illegal kickbacks in connection with oil projects in Latin America.
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 Perrye K. Turner of the FBI’s Houston Field Office made the announcement.
Franklin Marsan, 51, and Eduardo Betancourt, 48, both of Spring, Texas, each pleaded guilty to one count of conspiracy to commit wire fraud. They will be sentenced on July 1, 2016, by U.S. District Judge Melinda Harmon of the Southern District of Texas, who accepted their pleas today. As part of their plea agreements, Marsan and Betancourt agreed to pay restitution to their former employer.
According to the plea agreements, Marsan and Betancourt worked for a Texas-based company that, among other things, manufactured and supplied products for the petroleum, oil and gas industries. The company hired and paid third-party sales agents to promote and sell its products to customers outside the United States. Marsan and Betancourt ran the company’s Latin American operations from offices located in Houston. As part of their guilty pleas, Marsan and Betancourt admitted that from at least 2008 until at least March 2011, they obtained kickbacks from the commissions that these third-party sales agents received in connection with sales of the company’s products in several Latin American countries. Marsan and Betancourt admitted that during the course of the scheme, they received a total of at least $150,000, mostly in cash, in kickbacks, which they actively concealed from the company.
The FBI’s Houston Field Office investigated the case. Senior Trial Attorney Patrick Pericak and Trial Attorney Lorinda Laryea of the Criminal Division’s Fraud Section and Deputy Chief John Pearson of the Southern District of Texas are prosecuting the case.
The United States thanks the government of Panama for its assistance in this case. The Criminal Division’s Office of International Affairs provided significant assistance in this matter.
Two Former Executives of Houston-Based Oil Supply Company Plead Guilty in Illegal Kickback SchemeRead the Press Release
HOUSTON - Two former executives of a Houston-based oil supply company pleaded guilty today to fraud charges for their role in a scheme to secure illegal kickbacks in connection with oil projects in Latin America.
U.S. Attorney Kenneth Magidson, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office made the announcement.
Franklin Marsan, 51, and Eduardo Betancourt, 48, both of Spring, each pleaded guilty to one count of conspiracy to commit wire fraud. They will be sentenced July 1, 2016, by U.S. District Judge Melinda Harmon of the Southern District of Texas, who accepted their pleas today. As part of their plea agreements, Marsan and Betancourt agreed to pay restitution to their former employer.
According to the plea agreements, Marsan and Betancourt worked for a Texas-based company that, among other things, manufactured and supplied products for the petroleum, oil and gas industries. The company hired and paid third-party sales agents to promote and sell its products to customers outside the United States. Marsan and Betancourt ran the company’s Latin American operations from offices located in Houston. As part of their guilty pleas, Marsan and Betancourt admitted that from at least 2008 until at least March 2011, they obtained kickbacks from the commissions that these third-party sales agents received in connection with sales of the company’s products in several Latin American countries. Marsan and Betancourt admitted that during the course of the scheme, they received a total of at least $150,000, mostly in cash, in kickbacks, which they actively concealed from the company.
The FBI’s Houston Field Office investigated the case. Deputy Chief John Pearson of the Southern District of Texas, and Senior Trial Attorney Patrick Pericak and Trial Attorney Lorinda Laryea of the Criminal Division’s Fraud Section are prosecuting the case.
The United States thanks the government of Panama for its assistance in this case. The Criminal Division’s Office of International Affairs provided significant assistance in this matter.
Houston Woman Pleads Guilty to PerjuryRead the Press Release
HOUSTON – Amy Fisher, 36, of Houston, has been convicted of one count of perjury, announced U.S. Attorney Kenneth Magidson.
Fisher committed perjury on Nov. 17, 2014, during her deposition and trial testimony related to the civil trial of Lipinski et. al. v. Meritage Co., Civil Action No. H-10-CV-605.
The Meritage case was a Fair Labor Standards Act (FLSA) case that went to trial in Houston in November 2014. One of the primary issues during trial was whether or not Meritage Corporation had properly classified its sales people as “outside salesmen” who are exempt from the FLSA’s overtime and a minimum wage requirements. Plaintiffs, who were all employed as sales associates for Meritage Corporation, argued the company misclassified them as “outside salesmen” to avoid paying minimum wage and overtime pay.
One of the key issues during the civil trial was determining how much time Meritage sales associates spent in sales activity outside of the sales office. Fisher was the only Meritage sales associate who testified on behalf of the corporation and knew that testimony would benefit her employer.
The deposition and trial, which both occurred on Nov. 17, 2014, focused on what activities Fisher performed outside of her sales office. Fisher gave an oral deposition in the morning and was a trial witness in the afternoon. She was under oath during the deposition and at trial and swore to testify truthfully. However, Fisher has admitted she willfully and knowingly made several false statements regarding her sales activities.
Specifically, she claimed she had left her sales office model home in Katy on Nov. 16, 2014, to escort clients to tour model homes outside the sales office on at least three occasions. She added that her activities on that date were a representation of what she had “typically” done during her 12-year tenure at Meritage.
These statements were false. In fact, she never left the sales office model home at any time on that date to escort any clients. During the trial, Fisher was shown a videotape surveillance of the sales office from that date which confirmed she did not leave and never showed homes to any clients. Confronted with that evidence, she did not recant her false trial testimony or deposition testimony. She was also questioned by the presiding judge regarding the number of times she left her sales office model home on Nov. 16, 2014. She still did not recant her false trial testimony or false deposition testimony.
Fisher admitted today that her false statements were not the result of confusion, mistake or faulty memory. She also admitted that her fabricated testimony was material to the civil proceeding because it had a natural tendency to influence, and was capable of influencing, the decision of the jury.
U.S. District Judge Keith P. Ellison accepted the plea today and has set sentencing for May 26, 2016, at which time Fisher faces up to five years in federal prison and a possible $250,000 fine. She was permitted to remain on bond pending that hearing.
This case is being investigated by the FBI. Assistant U.S. Attorney Julie Searle and Jay Hileman are prosecuting the case.
Hidalgo Officials Sentenced for Conspiracy to Commit BriberyRead the Press Release
McALLEN, Texas ‐ Two Hidalgo women have been ordered to federal prison following their conviction for conspiracy to commit bribery, announced U.S. Attorney Kenneth Magidson. Susana Munguia, 61, and Lubina Pedraza, 54, pleaded guilty July 13, 2015.
Today, U.S. District Judge Micaela Alvarez, who accepted the guilty pleas, handed Munguia a 57-month sentence, while Pedraza was ordered to serve 46 months. The sentences will be followed by three years of supervised release. Munguia and Pedraza were also ordered to forfeit approximately $14,497 in illicit proceeds. In handing down the sentence, Judge Alvarez noted that we cannot allow public corruption to spread. There is no excuse for someone who takes a position in the public sector and then illegally uses that position for their own benefit.
Munguia and Pedraza were former officials with the City of Hidalgo Housing Authority who worked directly with the Department of Housing and Urban Development (HUD)’s Housing Choice Voucher Program (HCVP). Munguia was the executive director and Pedraza was a secretary.
From July 2011 to May 2014, Munguia and Pedraza admitted they used their positions as public officials to engage in a bribery scheme. The two women solicited and received bribes in exchange for allowing individuals to skip the Section 8 waitlist and immediately obtain housing assistance from the HCVP. Individuals paid, directly or through a third party, a monetary bribe to Munguia and Pedraza in order to bypass the waitlist system and to receive immediate approval to obtain vouchers for housing subsidies under the HCVP.
Munguia supervised and Pedraza was responsible for assigning housing to the payee or beneficiary and issued checks to subsidize their rent payments. After Munguia and Pedraza received the bribe, the paying party (or the person for whom payment was made), would immediately receive their subsidized housing.
Previously released on bond, the women were permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation was conducted by HUD-Office of Inspector General and the FBI. Assistant U.S. Attorney Kristen Rees prosecuted the case.
Local Daycare Worker and Brownsville Man Get Significant Sentences for Producing Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – Christina Cortez, 39, of Corpus Christi, and Matthew Harbin, 30, of Brownsville, have been handed long prison terms for producing child pornography, announced U.S. Attorney Kenneth Magidson. Harbin was also sentenced for child pornography charges stemming from the Northern District of Alabama. Cortez and Harbin pleaded guilty Sept. 23, 2015.
Today, Senior U.S. District Judge Hayden Head sentenced Harbin to a total of 35 years in federal prison. He was ordered to serve 300 months for the Corpus Christi charges and another 120 months for the Alabama case which will be served consecutively for a total of 420 months in federal prison. The sentence will be followed by a lifetime of supervised release. Cortez was sentenced to 20 years in federal prison to be immediately followed by 20 years of supervised release. Both must register as sex offenders. At the hearing, the victim’s mother gave a statement explaining how the crime affected her daughter and family.
The court also heard that the case began after Harbin was identified as providing images to an undercover officer in England. Using the email address [email protected], Harbin provided three photos of a child clothed and not sexually posed, but that appeared to be taken at a daycare facility. Harbin told the undercover officer he had more pictures, wanted to trade and asked the undercover officer if they had a daughter and how young they were “in to.” Harbin later sent five more pictures of what appears to be the same female child, but that were sexually explicit in nature. One image depicts the child laying down on a blue mat with her dress lifted and her lower body exposed. Other images depicted an adult female’s hand making contact with a child’s private area.
Further investigation revealed Harbin had previously received the images from Cortez in July 2014. In their communications, Cortez claimed to work at a daycare facility where she produced the images. Cortez admitted taking and sending the images of the same female child involved in sexually explicit conduct to Harbin. The child’s genitals appear to be the focus of all three of the aforementioned images, one of which includes the child fondling herself.
In their communications, both Harbin and Cortez indicated a desire to engage with children. During one conversation, Cortez told Harbin “I would love to watch us with her. 2 & half.”
Today, the court also heard from a Homeland Security Investigations (HSI) agent from Alabama. The agent testified Harbin is a convicted sex offender from Alabama who fled to Brownsville following the issuance of a federal arrest warrant for child. In that case, Harbin admitted to trading child pornography two or three times per month with individuals online. The agent also testified that a search of Harbin’s email accounts uncovered multiple conversations with other individuals regarding the sexual abuse of children. Agents seized various electronic devices from Harbin on which forensic analysis revealed more than 2800 images and more than 130 videos of child pornography.
A Brownsville HSI agent also provided testimony today. The agent explained that when Harbin was arrested in Brownsville, a search of his email accounts also uncovered multiple conversations with more individuals regarding the sexual abuse of children. A forensic analysis of Harbin’s electronic devices from his Brownsville arrest revealed more than 3,500 images and more than 360 videos of child pornography.
Both Cortez and Harbin have remained in custody since their arrest and will remain there 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 HSI, U.S. Secret Service 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."
Four Ordered to Prison for Sex Trafficking of MinorsRead the Press Release
HOUSTON – A total of four people who were residing in Houston have been sentenced to federal prison for their respective roles related to the sex trafficking of minors, announced U.S. Attorney Kenneth Magidson.
Luisa Vargas, a legal permanent resident residing in Houston, was convicted of sex trafficking of a minor and harboring illegal aliens following a bench trial June 19, 2015, while Dolores Vargas, also a legal permanent resident in Houston; Blasina Vargas, a naturalized U.S. citizen residing in Houston; and Ignacio Escandon, a citizen of Cuba, had previously pleaded guilty to engaging in the sex trafficking of minors.
Today, U.S. District Judge Lynn N. Hughes ordered Luisa Vargas to serve 120 months in federal prison. Blasina and Delores each received a sentence of 60 months, while Escandon will serve an 87-month term of imprisonment.
From at least February 2012, the defendants employed women and a girl less than age 18 as prostitutes in the Westview apartments being used as a brothel. These women and young girl were instructed as to how much money to charge their clients for commercial sex. Approximately half of the proceeds were given to the defendants. As a general practice, the price paid was $40 for 15 minutes of sex. The defendants knew that most, if not all, of the ladies employed for the purpose of prostitution were aliens illegally within the United States.
All will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the future.
The charges were the of an investigation by Homeland Security Investigations, FBI, Houston Police Department and Harris County Sheriff’s Office. Assistant U.S. Attorneys Doug Davis and Julie Searle prosecuted the case.
Two Texas Men Sentenced for Federal Hate Crime Against Gay African-American ManRead the Press Release
CORPUS CHRISTI, Texas - Ramiro Serrata Jr., 23, and Jimmy Garza, 33, were each sentenced to 15 years in federal prison following their convictions of hate crime offenses for their roles in a Mar. 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.
Both men pleaded guilty in September 2015, to one count of conspiracy to commit hate crimes and one count of a hate crime violation of the Shepard-Byrd Hate Crime Act for causing bodily injury because of the victim’s sexual orientation. The sentences were imposed today by Senior U.S. District Judge Hayden Head. In handing down the sentence, Judge Head commented that the defendants had abandoned their humanity to the viciousness of animals, and also added that not only must the defendants be punished for their behavior, but that it must send a message that this type of behavior won’t be tolerated in a civilized society. Both men were also ordered to pay $10,800 in restitution, serve three years of supervised release and register as sex offenders.
During their respective plea hearings, both men admitted they conspired to assault a gay African-American man because of his race and sexual orientation. During the assault, the defendants 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. The defendants also poured bleach onto the victim’s face and into his eyes, and Garza struck the victim in the head with a handgun.
Serrata and Garza further admitted that when the victim began to bleed during the assault, that they forced him to remove all of his clothing and clean up the blood throughout the apartment. After the victim was naked, Garza pointed a gun at him while Serrata sodomized the victim with a broom handle. Serrata and Garza admitted that, throughout the assault, they called the victim “gay” and other racial and homophobic slurs. The defendants also admitted that they repeatedly whipped the victim with a belt while calling him a “slave” and making other references to slavery.
Both men acknowledged that throughout the assault, they also prevented the man from leaving the apartment by physical force and threats of force. The victim eventually escaped the apartment by jumping out of a window and running away until he was discovered by the police.
“Today’s sentencing makes clear that assaults based on bias and hate will not be tolerated in this nation, and the Department of Justice will aggressively seek justice for any and all victims of such heinous violence,” said Gupta. “These crimes violate both our civil rights laws and most basic national values. The Department of Justice will aggressively seek justice for any and all victims of such heinous violence.”
“The protection of all individuals from acts of violence based on their rights guaranteed By the Constitution and laws of the United States will always be a priority in this judicial district,” said Magidson. “This case represents that commitment.”
Serrata and Garza will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. A third defendant, Carlos Garcia Jr., pleaded guilty on Jan. 5, 2016, to one count of making false statements to a federal law enforcement officer. Garcia is scheduled to be sentenced March 22, 2016, at which time he faces a maximum sentence of five years in prison.
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 Assistant U.S. Attorney Ruben Perez and Trial Attorneys Jared Fishman and Nicholas Durham of the Civil Rights Division’s Criminal Section.
Two Texas Men Sentenced for Federal Hate Crime Against Gay African-American ManRead the Press Release
Ramiro Serrata Jr., 23, and Jimmy Garza, 33, were each sentenced to 15 years in prison following their convictions of hate crime offenses for their roles in a Mar. 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.
Both men pleaded guilty in September 2015, to one count of conspiracy to commit hate crimes and one count of a hate crime violation of the Shepard-Byrd Hate Crime Act for causing bodily injury because of the victim’s sexual orientation. The sentences were imposed today by Senior U.S. District Judge Hayden Head of the Southern District of Texas. In handing down the sentence, Judge Head commented that the defendants had abandoned their humanity to the viciousness of animals, and also added that not only must the defendants be punished for their behavior, but that it must send a message that this type of behavior won’t be tolerated in a civilized society. Both men were also ordered to pay $10,800 in restitution, serve three years of supervised release and register as sex offenders.
During their respective plea hearings, both men admitted they conspired to assault a gay African-American man because of his race and sexual orientation. During the assault, the defendants 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. The defendants also poured bleach onto the victim’s face and into his eyes, and Garza struck the victim in the head with a handgun.
Serrata and Garza further admitted that when the victim began to bleed during the assault, they forced him to remove all of his clothing and clean up the blood throughout the apartment. After the victim was naked, Garza pointed a gun at him while Serrata sodomized the victim with a broom handle. Serrata and Garza admitted that, throughout the assault, they called the victim “gay” and other racial and homophobic slurs. The defendants also admitted that they repeatedly whipped the victim with a belt while calling him a “slave” and making other references to slavery.
Both men acknowledged that throughout the assault, they also prevented the man from leaving the apartment by physical force and threats of force. The victim eventually escaped the apartment by jumping out of a window and running away until he was discovered by the police.
“Today’s sentencing makes clear that assaults based on bias and hate will not be tolerated in this nation,” said Principal Deputy Assistant Attorney General Gupta, head of the Civil Rights Division. “These crimes violate both our civil rights laws and most basic national values. The Department of Justice will aggressively seek justice for any and all victims of such heinous violence.”
“The protection of all individuals from acts of violence based on their rights guaranteed by the Constitution and laws of the United States will always be a priority in this judicial district,” said U.S. Attorney Magidson. “This case represents that commitment.”
Serrata and Garza will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. A third defendant, Carlos Garcia Jr., pleaded guilty on Jan. 5, 2016, to one count of making false statements to a federal law enforcement officer. Garcia is scheduled to be sentenced on March 22, 2016, and faces a maximum sentence of five years in prison.
This case was investigated by the FBI’s Corpus Christi, Texas, 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.
Federal Prison for ID Theft and Credit Card FraudstersRead the Press Release
CORPUS CHRISTI, Texas - Ibrahin Suarez-Venerao, 29, and San Juanita Avalos, 32, both of Corpus Christi, have each been sentenced to more than five years in federal prison for credit card fraud and identity theft, announced U.S. Attorney Kenneth Magidson. Both pleaded guilty to the charges June 15, 2015.
Today, Senior U.S. District Judge John D. Rainey ordered Suarez-Venerao to serve 40 months for the fraud as well as a mandatory and consecutive 24 months for the identity theft. The total 64-month sentence will be immediately followed by three years of supervised release. Judge Rainey had previously sentenced Avalos to 61 months in federal prison – 37 months for the fraud and 24 months for identity theft - followed by three years of supervised release. Both defendants were further ordered to pay $29,551.00 in restitution.
The case began following the receipt of numerous credit card fraud complaints. Investigators with the Corpus Christi Police Department (CCPD) used store surveillance footage and were able to identify Suarez-Venerao and Avalos using counterfeit credit cards to make thousands of dollars in purchases. The purchases were made at area merchants including Wal-Mart and Home Depot. Officers executed a search warrant and discovered a credit card embossing machine, fake identification documents, counterfeit credit cards, more than 300 gift cards worth $5,300 and more than $16,000 in cash. A search of the computers at the residence revealed almost 500 more compromised credit card numbers.
Both defendants were ordered to remain in custody pending transfer to a U.S. Bureau of Prisons Facility.
The charges were the result of an investigation conducted by CCPD and the U.S. Secret Service. Assistant United States Attorney Robert D. Thorpe Jr. prosecuted the cases.
Mexican National Sent to Prison for Importing Nearly $2 Million in MethRead the Press Release
McALLEN, Texas – A 43-year-old Mexican national has been ordered to federal prison following his conviction of importing 75 kilograms of methamphetamine into the country hidden within a load of squash and cactus, announced U.S. Attorney Kenneth Magidson. Daniel Salvador Gomez-Reyes pleaded guilty Oct. 29, 2015.
Today, U.S. District Judge Randy Crane handed Gomez-Reyes a 72-month sentence, noting the significant weight of the methamphetamine that Gomez-Reyes brought into the United States. As an illegal alien, Gomez-Reyes is expected to face deportation proceedings following his release from prison.
On March 31, 2015, Daniel Salvador Gomez-Reyes was intercepted by federal agents while was driving a semi-truck loaded with squash and cactus into the Pharr port of entry from Mexico. Upon investigation, federal agents soon discovered 75 kilograms of methamphetamine hidden within false compartments in the pallets under the produce. Gomez-Reyes admitted he picked up the narcotics-laden produce under suspicious circumstances in Mexico and that he knew he was importing controlled substances into the U.S.
The estimated value of the load of methamphetamine is estimated to be approximately $1.98 million.
Gomez-Reyes 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 Homeland Security Investigations and Customs and Border Protection. Assistant U.S. Attorneys David A. Lindenmuth and Alexandro Benavides are prosecuting the case.
Two Judges, Three Trials, Four GuiltyRead the Press Release
LAREDO, Texas – After a busy week in Laredo federal court, a total of four people residing in varying Texas communities have been found guilty as charged, announced U.S. Attorney Kenneth Magidson. A mother and daughter and another man were convicted in cocaine conspiracies before U.S. District Judge Marina Garcia Marmolejo, while a truck driver was convicted of alien smuggling before U.S. District Judge Diana Saldana.
Feather J. Saldana, 65, and her daughter Shawna P. Johnson, 41, both of Gatesville, were convicted late yesterday after a day and a half trial. According to witnesses, the women drove to a Laredo port of entry on Dec. 5, 2014, in Johnson’s vehicle which was loaded with 38 kilograms of cocaine in the gas tank and center console areas. Saldana and Johnson initially denied any involvement in the importation of cocaine, continued to do so at trial and further denied any involvement in a known drug smuggling organization. However, several witnesses testified otherwise, claiming that Johnson had made several successful narcotics crossings in the past and that Saldana was being trained for an upcoming solo crossing.
The jury deliberated for approximately an hour before finding the mother and daughter guilty of conspiring to import and importing cocaine as charged.
In a separate trial that commenced immediately prior, a jury also found Enrique Fernando Salazar-Valencia, 51, guilty of conspiring to import cocaine. During that two-day trial, the jury heard that
a commercial bus registered to Salazar-Valencia, of Austin, attempted to enter a Laredo port of entry on Sept. 7, 2015. The bus was found to contain 51 kilograms of cocaine in a hidden compartment at the back of the bus. Salazar-Valencia also denied any involvement in the importation of cocaine. However, witnesses at trial testified that he was in fact a recruiter for a drug smuggling organization and was also responsible for the organization’s use of commercial buses in narcotics smuggling.
The jury deliberated for two hours before convicting him.
All of these defendants face a face a mandatory minimum of 10 years and up to life in prison. They all have been and will remain in custody pending their sentencing hearings.
Both cases were the result of the investigative efforts of Homeland Security Investigations with the assistance of Customs and Border Protection. Assistant U.S. Attorney (AUSA) Christopher A. dos Santos and Special AUSA Lisa Ezra prosecuted both of these cases.
In another Laredo courtroom, a federal jury convicted Jorge Miguel Pedro-Fernandez, 26, of Houston, on three counts related to alien smuggling. Pedro-Fernandez attempted to smuggle aliens concealed in his tractor past the U.S. Border Patrol checkpoint on Interstate 35 on Nov. 24, 2015. At that time, a Border Patrol canine alerted to the defendant’s tractor. A subsequent search uncovered six undocumented aliens hiding in the cab of the tractor. The jury heard that Pedro-Fernandez had initially given a statement admitting he had agreed to smuggle the aliens past the checkpoint.
At trial, the jury also heard from two of the illegal aliens that Pedro-Fernandez attempted to drive them past the checkpoint. One them also noted that the defendant had told him where to hide.
However, Pedro-Fernandez testified and claimed the aliens had snuck on his tractor without his knowledge. He also denied ever confessing that he knowingly transported aliens. Upon cross-examination, the government demonstrated numerous inconsistencies in the defendant’s story.
After approximately two hours of deliberation, the jury convicted Pedro-Fernandez of conspiracy to smuggle aliens and two counts of smuggling aliens.
U.S. District Judge Diana Saldana will set sentencing at a later date, at which time the defendant faces up to 10 years in prison and a $250,000 fine. He was taken into custody immediately after the verdict where he will remain pending that hearing.
Homeland Security Investigations also investigated this case along with Border Patrol. Assistant U.S. Attorneys Alfredo De La Rosa and Jorge Vela are prosecuting.
Former Goodwill Employee Charged in Scheme to Steal VA Grant MoneyRead the Press Release
HOUSTON – A former employee of Goodwill Industries of Houston Inc. and another person have been taken into custody following the return of a 15-count indictment involving a wire fraud conspiracy, announced U.S. Attorney Kenneth Magidson.
Darrell Demond Arline, 36, of Pearland, and Aaron Matthew Pierce, 36, of Houston, were taken into custody today. They are expected to make their initial appearances before U.S. Magistrate Judge Nancy Johnson at 2:00 p.m.
Arline worked for Goodwill and served as program director for two Department of Veterans Affairs (VA) grants for Supportive Services for Veteran Families (SSVF), according to the indictment. The SSVF grants were intended to provide supportive services to very low-income military veteran families who were residing in permanent housing, were homeless and scheduled to become residents of permanent housing within 90 days and, after exiting permanent housing, were seeking other housing that was responsive to such very low-income military veteran family’s needs.
The indictment alleges that between Jan. 3, 2013, and Aug. 28, 2014, Arline submitted fraudulent purchase orders resulting in the theft of SSVF grant monies. Arline allegedly recruited Pierce to use his name and a sham real estate business to cash the fraudulently-acquired SSVF grant checks.
Both men are charged in the conspiracy. Arline faces 14 substantive counts of wire fraud, while Pierce is charged with three.
If convicted, the defendants face up to 20 years in federal prison and a possible $250,000 maximum fine on each count of conviction.
The indictment was the result of an investigation conducted by VA - Office of Inspector General, Criminal Investigations Division with the assistance of the U.S. Marshals Service. Assistant U.S. Attorney Daniel C. Rodriguez is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
The defendants are presumed innocent unless and until convicted through due process of law.
Two Sex Offenders Get Massive Sentences for Online Solicitation of a MinorRead the Press Release
CORPUS CHRISTI, Texas – Two men, already convicted sex offenders who resided in Corpus Christi, have both been sentenced for online solicitation of a minor in separate but similar cases, announced U.S. Attorney Kenneth Magidson. James Robert Kirkland, 48, and Taylor Alan Mills, 30, both pleaded guilty in December 2015.
Late today, Senior U.S. District Hayden Head to ordered Kirkland serve a total of 324 months in federal prison to immediately followed by a lifetime of supervised release. At the hearing, a Homeland Security Investigations (HSI) agent testified that in 1998, Kirkland was convicted in North Carolina for indecent liberties with a child and was required to register as a sex offender. In that case, Kirkland sexually assaulted an 10-year-old family member. In 2001, Kirkland was also convicted in federal court for bank robbery. The court also heard that Kirkland was on a federal supervised release for a 2010 failure to register as a sex offender conviction when he was arrested on the online solicitation of a minor case. The court revoked that term and ordered he serve 24 months on that charge which will be served consecutively to the 300-month sentence for the current solicitation of a minor conviction, resulting in a total term of 324 months in federal prison.
Earlier this week, Senor U.S. District Judge Janis Graham Jack ordered Mills to federal prison for a term of 25 years and must serve the rest of his life on supervised release. At that hearing, additional evidence was presented from an Aransas Pass Police Department detective who worked on his 2013 online solicitation of a minor case. According to testimony, Mills began having a conversation on a social media website with a 16-year-old girl in 2012. Mills eventually picked up the girl from school and exposed himself to her. He was convicted in state court in 2013 and required to register as a sex offender.
Both must also register as sex offenders.
At the time of their pleas, the court heard that in September 2015, FBI, Homeland Security Investigations (HSI) and the Corpus Christi Police Department - Internet Crimes Against Children Task Force (CCPD-ICAC) conducted a joint investigation targeting individuals involved in online solicitation of minors. Mills and Kirkland were both communicating with a person they believed was the mother of two minor female children – ages 14 and 11. In reality, they were actually talking to an undercover officer. Mills and Kirkland each made arrangements to meet and engage in sexual activity with the mother’s minor female children.
Both men were apprehended as they arrived at the designated meeting places. At the time of each man’s arrest, they both had several condoms with them and admitted to authorities that their intentions were to engage in sexual acts with the minor children.
Both men were arrested on the federal charges in September 2015 and have been in custody since that time where they will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case, prosecuted by Assistant U.S. 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."
School Bus Driver Gets 500 Months for Producing and Distributing Child PornographyRead the Press Release
GALVESTON, Texas – A 46-year-old Galveston man has been ordered to federal prison for nearly 42 years for sexual exploitation of a child as well as possession and distribution of child pornography, announced U.S. Attorney Kenneth Magidson. Michael Lee Martinez pleaded guilty Sept. 11, 2015.
Today, U.S. District Judge George C. Hanks Jr. handed Martinez a sentence of 360 months for three counts of production of child pornography, each to be served concurrently. He also received a sentence of 140 months for the distribution which be served consecutively to production sentence and 120 months for possession which is to be served concurrently to the other sentences imposed. The total 500-month sentence will be followed by 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 and will be required to register as a sex offender.
At the hearing, information was presented including evidence that he produced numerous images to a website used by pedophiles to exchange child pornography. He possessed 140 videos and 394 images of child pornography on his cell phone as well as 44 images and 1,261 videos in his emails. The images Martinez produced were of two minor female relatives and a close friend of one of the relatives. All of the victims were under 16 years of age with one only five.
In handing down the sentence, Judge Hanks called his actions horrible and selfish. “You destroyed the lives of three innocent children,” the court noted, “and society has to protect itself from people like you.”
Martinez came to the attention of law enforcement during a Homeland Security Investigations (HSI) investigation of a particular website hosted outside the United States. The website was used by those sexually exploiting children and looking to connect with others who shared their interest in the sexual exploitation of children by trading images of child pornography.
Martinez created an account on this website in May 2014, using the screen name “Mr. Happy” and indicated he loved girls eight to 16 years of age. His profile contained 37 albums with hundreds of images of child pornography. A review of his albums led law enforcement to believe Martinez was producing some of the images he had posted to the website. Law enforcement was able to identify the victims and learned Martinez was a school bus driver. There is no indication that any of this criminal behavior was connected to his employment nor any of his victims a part of his route.
Martinez admitted to his criminal behavior, including stealing images of from two of his victims’ cell phones. He turned his phone over to law enforcement and indicated they would find images of him sexually gratifying himself next to the head of one of the victims as well as an image of his face near her breasts while she slept.
Martinez was originally arrested by local authorities and later transferred to federal custody where he has been and 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 Galveston Police Department – Internet Crimes Against Children Task Force. He still faces state charges in Galveston.
This case, prosecuted by Assistant U.S. Attorney Sherri L. Zack, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Katy Couple Charged with Enslaving ServantRead the Press Release
HOUSTON – A couple residing in Katy has been taken into custody following the filing of a criminal complaint alleging forced labor, withholding documents, conspiracy to harbor an illegal alien and visa fraud, announced U.S. Attorney Kenneth Magidson.
Chudy and Sandra Nsobundu, 56 and 50, respectively, were arrested today and expected to make their initial appearance before U.S. Magistrate Judge Nancy Johnson at 10:00 a.m. tomorrow. The criminal complaint was filed under seal Feb. 5, 2016, and automatically unsealed upon their arrests today.
The victim is a 38-year-old Nigerian national. According to the affidavit in support of the complaint, she was subjected to physical and verbal abuse while employed by the Katy couple and regularly referred to as “the idiot.” The victim allegedly worked every day from 5:30 a.m. until 1:00 a.m. and was responsible for cleaning the house, making meals and taking care of five children. The criminal complaint alleges she was told she could not watch television or even sit down during her work hours. She was also allegedly told to sleep on the floor and could not use warm water to bathe or wash her hair. The affidavit also claims that she was not allowed to eat fresh food and was only permitted the leftovers from the previous prepared meals. Further, if the victim even wanted some milk for her tea, she would have to actually strain the milk out of the children’s cereal bowls, according to the allegations. In one instance of alleged abuse, the criminal complaint charges that Sandra Nsobundu drug the victim by her hair and hit her across her face because she did not like the socks the victim put on one of the children.
The victim did not have access to a phone and could not communicate with her family, according the charges. Her movements were mostly limited to the residence and allegedly only allowed out for short walks with the youngest children around her block. The charges outlined in the complaint indicate the victim also did not have access to her passport and other travel documents.
The defendants had previously agreed to pay the woman 20,000 Nigerian nairas - $100 U.S. dollars per month, according to the charges. The Nsobundus allegedly never paid the victim for any of her work here in the U.S.
The victim was rescued Oct. 10, 2015, after more than two years with the Nsobundus in the U.S., following a tip to the National Human Trafficking Resource Center.
If convicted of forced labor, the defendants face up to 20 years in federal prison. For visa fraud, the maximum penalty is a 25-year-federal prison term, while the withholding documents and harboring conspiracy carry as possible punishment a maximum five and 10 years, respectively, upon conviction. All of the charges could also result in a $250,000 maximum fine.
The investigation leading to the filing of criminal charges was the result of an investigation conducted by members of the Human Trafficking Rescue Alliance in Houston, which includes Homeland Security Investigations, Fort Bend Sheriff’s Office and the Department of State - Diplomatic Security Service. Assistant U.S. Attorneys Julie N. Searle and Ruben R. Perez are 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 Man Charged in Garden Oaks Post Office RobberyRead the Press Release
HOUSTON - A 40-year-old man has been arrested following the filing of a criminal complaint alleging he robbed a post office and brandished a firearm during a crime of violence, announced U.S. Attorney Kenneth Magidson.
Joe Robert Martinez, of Houston, was taken into custody Friday and is expected to make his initial appearance before U.S. Magistrate Judge Nancy Johnson at 10:00 a.m. today.
Martinez is charged with robbing the post office in Garden Oaks, located at 3816 North Shepherd in Houston on Jan. 28, 2016. The criminal complaint alleges he entered the post office and inquired about tracking a package. He then exited the building, but soon returned with a gun and allegedly demanded the clerk open the cash drawer and give him money. He ordered her to her knees, then he left with the currency, according to the allegations.
If convicted, he faces up to 25 years in prison for the robbery in addition to mandatory minimum of seven years for the firearms charge.
The charges are the result of an investigation conducted by the U.S. Postal Inspection Service in cooperation with the Houston Police Department. Assistant U.S. Attorneys Joe Porto and Heather Winter are 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.Ex-CEO of McAllen-Based Trucking Company Sentenced in $11 Million Fraud SchemeRead the Press Release
HOUSTON – The former CEO of USA Dry Van Logistics (USADV), a cross-border trucking company that services the maquiladora industry, has been ordered to federal prison, announced U.S. Attorney Kenneth Magidson. Sergio Lagos, 46, pleaded guilty Jan. 20, 2015, to conspiracy to commit wire fraud and six counts of wire fraud. Also sentenced today were Aurelio “Jim” Aleman, 62, and Oscar Barbosa, 53, former chief operations officer and former controller for the company, respectively, who pleaded guilty to conspiracy to commit wire fraud on Sept. 16, 2013.
Today, U.S. District Judge Kenneth M. Hoyt ordered Lagos to serve a total of 97 months in federal prison to be immediately followed by three years of supervised release. Aleman and Barbosa were handed respective sentences of 47 and 24 months, also followed by three-year-terms of supervised release. The court further ordered restitution in the amount of $15,970,517.37 which includes payment for attorney fees and investigative fees incurred by GE Capital in investigating the magnitude and extent of the defendants’ fraud.
According to records, Aleman and Lagos entered into a financing agreement with GE Capital Corporation (GECC) under which GECC would issue a revolving line of credit which was secured by USADV’s accounts receivables. By January 2010, the maximum borrowing limit under the agreement was increased to $38 million. Pursuant to the agreement, USADV justified advances on the line of credit by submitting “borrowing base certificates” to GECC.
Lagos admitted that from March 2008 through the end of January 2010, he joined in a scheme to defraud and swindle GECC, a lending company that provided capital to USADV, fraudulently obtaining funds through a revolving line of credit. At the plea hearing, Lagos admitted he schemed to conceal from GECC the truth about USADV’s declining operating performance and financial results. Rather than reveal USADV’s true condition, Lagos and his co-defendants misrepresented USADV’s true operating performance and financial results to include the nature of the USADV’s accounts receivable, against which GECC was permitting USADV to borrow hundreds of thousands of dollars on a weekly basis. This caused USADV to appear to be operating more profitably that it actually was.
Lagos signed, prepared and/or directed others to prepare certificates that falsely inflated the amount of the company’s accounts receivables and caused them to be submitted to GECC to enable USADV to obtain more funds than would otherwise have been permitted. Lagos perpetuated and concealed the scheme to defraud GECC by directing other employees to manually invoice millions of dollars of fraudulent receivables to inflate the borrowing base and to create false and forged invoices and support documentation for accounts receivables that did not exist. Lagos also admitted to submitting false financial statements to auditors and GECC.
When the truth about USADV’s operations and finances were revealed, USADV went into bankruptcy and is no longer operational.
The three defendants were permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation was conducted by Homeland Security Investigations and the FBI. Assistant U.S. Attorney (AUSA) Casey N. MacDonald and former AUSA Grady J. Leupold prosecuted the case.
Heroin Distributor Gets Nearly 33 Years in Federal Prison in Mexican Mafia CaseRead the Press Release
LAREDO, Texas – Nearly two dozen people have been ordered to prison in relation to a drug conspiracy involving heroin, cocaine and methamphetamine, announced U.S. Attorney Kenneth Magidson. All were charged in a 2013 indictment alleging members and associates of the Texas Mexican Mafia prison gang were involved in the drug conspiracy. They had all previously pleaded guilty in the case.
Juan Pablo Contreras, 43, of Laredo, was found to be the main distributor of heroin. He would buy the drugs wholesale from Mexico and distribute it locally and to San Antonio. Today, U.S. District Judge Diana Saldana ordered he serve 390 months in federal prison.
Over the past two weeks, numerous others have also been sentenced.
Modesto Ramirez Jr., 46, Julio Jesus Rangel, 33, Jaime Tomas Hernandez-Rocha, 48, Pablo Contreras Jr., 44, Guadalupe Mario Contreras, 53, Carlos Contreras, 33, and Raul Victoriano Rojas, 43, would secure kilogram amounts of heroin from Juan Pablo Contreras. With the exception of Ramirez, who was convicted of possession with the intent to distribute heroin, all pleaded guilty to the conspiracy. Guadalupe Mario Contreras was sentenced to 262 months while Carlos Contreras and Pablo Contreras Jr. each received 210 months. Both Rojas and Ramirez each received sentences of 198 months, while Rangel was sentenced to a 240-month-term of imprisonment. Hernandez-Rocha was found to be the gang’s enforcer and received 252 months of federal imprisonment.
Steve Contreras, 37, Eufrosina Lopez, 44, Jose Fernando Lomeli, 27, and Luis M. Salinas, 48, each pleaded guilty to possession with the intent to distribute heroin and received respective sentences of 76, 78, 60 and 70 months in prison. Orlando Ibarra, 35, pleaded guilty to possession with intent to distribute less than 500 grams of cocaine and received a sentence of 32 months.
Victor Contreras, 25, Martin Contreras Jr., 27, Guadalupe Bedarte, 32, Jorge Guerra, 43, Christopher O’Bryant, 29, Juan Leopoldo Arvizo, 30, Eduardo Santa Cruz, 35, and Yvonne Hernandez, 43, were convicted on conspiracy charges. Victor Contreras received a sentence of 71 months, while Contreras Jr. and Bedarte got 83 and 46 months, respectively. Guerra and O’Bryant each received 12 months and one day of imprisonment, while Arvizo, Cruz and Hernandez were ordered to serve 33, 37 and 97 months in federal prison, respectively.
Monica Ortega, 40, was sentences to 151 months for her conviction of conspiracy to maintain drug-involved premises, while Arnulfo Valdez, 45, was convicted of conspiracy to commit money laundering and sentenced to 108 month in prison.
Ana Rosa Contreras, 31, also pleaded guilty to the money laundering conspiracy and received a sentence of three years of probation. She is married to Carlos Contreras. She and her husband admitted to having purchased their residence in the prestigious Lakeside subdivision with the proceeds of drug sales. As a result, the court ordered the property to be forfeited to the government. The residence is valued at more than $300,000.
Previously, Richard Cruz Rodriguez, 48, of San Antonio, was ordered to serve 48 months in prison for use of a communication facility to facilitate a felony drug offense.
Mario Alberto Rodriguez, 28, will be sentenced at a later date.
The indictment is part of an Organized Crime Drug Enforcement Task Force investigation named “Operation X3,” which was conducted by agents of the FBI, Drug Enforcement Administration, Homeland Security Investigations and IRS – Criminal Investigations. They were assisted at different times by the U.S. Marshals Service, police departments in Laredo, Austin and San Marcos, U.S. Customs and Border Protection, Texas Department of Public Safety - Criminal Investigations Division and the LaSalle County Sheriff’s Office. Assistant U.S. Attorney Andy Guardiola are prosecuting the case.
Victoria Man Gets 30 Years for Producing Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – James Peyton Busbee Jr., 30, of Victoria, 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.
At a hearing late yesterday, Senior U.S. District Judge John D. Rainey sentenced Busbee to 360 months in federal prison. At the hearing, the agent testified that Busbee used a pipe laced with methamphetamine in the assault. In handing down the sentence, Judge Rainey called the crime “heinous.” The prison term will be immediately followed by 10 years of supervised release during which time he will have to comply with numerous requirements designed to restrict access to children and the Internet. He must also register as a sex offender and pay $1200 in restitution.
On Feb. 3, 2015, authorities responded to Busbee’s residence in reference to the possible sexual assault of a child. A minor male relative was identified and confirmed the abuse. Busbee also admitted to sexually assaulting the child.
A forensic examination of Busbee’s phone led to the discovery of an electronic video depicting Busbee involved in sexually explicit conduct with the child. Busbee was arrested on the federal charges in April 2015 and has been in custody since that time.
The charges were the result of an investigations conducted by Homeland Security Investigations with the assistance of the Victoria County Sherriff’s Office.
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."
Mexican Clinic Doctor Detained in Scheme to Commit Wire FraudRead the Press Release
McALLEN, Texas ‐ Two physicians from a family medicine clinic in Mexico have been charged in a federal indictment for their role in a scheme to submit false and fraudulent insurance claims, announced U.S. Attorney Kenneth Magidson.
According to the indictment, Dr. Mayolo Melchor, 58, and Dr. Bertha Hernandez-Melchor, 60, both of Reynosa, Tamaulipas, Mexico, conspired with policy holders of the American Family Life Insurance Company (AFLAC) to fax more than 50,000 fraudulent claim forms and accident reports to AFLAC for accidents and injuries that never occurred. The indictment charges the defendants with one count of conspiracy to commit wire fraud and eight counts of wire fraud.
The indictment was returned on June 14, 2011 and later arrested in Mexico. They were subsequently extradited to Houston and made an initial appearance on Jan. 22, 2015. Today, Hernandez-Melchor appeared before U.S. Magistrate Dorina Ramos in McAllen, at which time she was ordered into custody pending further criminal proceedings. Melchor will appear for his detention hearing Thursday, Feb. 4, 2016.
According to the indictment, policyholders for AFLAC paid the defendants to prepare and sign false reports for accidents and injuries that never occurred. The AFLAC policy holders would allegedly fill out false claims forms in the McAllen area and deliver them to the defendants’ family medicine clinic in Mexico where the defendants would prepare and sign corresponding accident reports for each fake accident and injury, according to the charges.
The indictment alleges that from September 2001 to August 2010, the defendants and the policyholders caused more than 50,000 fraudulent claim forms and accident reports to be faxed to AFLAC, resulting in the disbursement of approximately $5 million in benefit checks to the policyholders.
Conspiracy to commit wire fraud and each of the eight counts of wire fraud carry a maximum punishment of 20 years in federal prison without parole and a $250,000 fine upon conviction.
The investigation leading to the charges was conducted by the FBI. Assistant U.S. Attorneys Tina Ansari and Michael Day are prosecuting the case.
An indictment is an accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Prison Guard Convicted of Having Sex with InmateRead the Press Release
HOUSTON - A former prison guard at the federal prison camp in Bryan has entered a guilty plea to two counts of sexual abuse of a ward, announced U.S. Attorney Kenneth Magidson.
Kendrick Desmond Brooks, 45, of Bryan, was charged with engaging in a sexual relationship with an inmate who was under his custodial, supervisory or disciplinary authority.
Brooks was an employee at the federal prison camp in Bryan. He admitted that in November 2014, he picked up a female inmate who was in official detention at the camp and told her they were going to the “comm shop.” Once there, Brooks pulled the inmate’s pants down and they engaged in sexual contact and intercourse.
Then, in January 2015, Brooks met the inmate in the hallway while she was on route to the commissary and asked her to help him fix the temperature in the chapel/education area. They went to the boiler room located at the back of the educational section, at which time they again engaged in sexual contact.
At the time of these acts, Brooks was an employee of the federal prison camp and the inmate was in official detention and under his custodial, supervisory or disciplinary authority.
U.S. District Judge Ewing Werlein Jr. accepted the guilty plea today and has set sentencing for May 6, 2016. At that time, he faces up to 15 years in federal prison and a possible $250,000 fine. He was permitted to remain on bond pending that hearing.
The charges are the result of an investigation conducted by the Office of Inspector General. Assistant U.S. Attorneys Ruben R. Perez and Jill Stotts are prosecuting the case.
Largest Methamphetamine Seizure in Corpus Christi Division Results in Federal IndictmentRead the Press Release
CORPUS CHRISTI, Texas – A grand jury sitting in Corpus Christi has returned an indictment against a California man for conspiring to possess with intent to distribute 132 kilograms of methamphetamine, announced U.S. Attorney Kenneth Magidson. This is believed to be the largest seizure of methamphetamine ever in the Corpus Christi Division.
The indictment against Deandre Bennett, 57, of San Bernadino, California, was returned today. He is expected to make his initial appearance before U.S. Magistrate Judge Jason Libby next week, at which time the government expects to request his continued detention pending further criminal proceedings.
Bennett is charged with conspiring to possess with intent to distribute 132 kilograms of a mixture or substance containing a detectable amount of methamphetamine on Dec. 2, 2015. If convicted, he faces a minimum of 10 years and up to life in federal prison as well as a possible $10 million fine.
This charges are the result of an investigation through a joint effort by Homeland Security Investigations, Texas Department of Public Safety, Kingsville Specialized Crimes and Narcotics Task Force, Kleberg County District Attorney’s Office, U.S. Customs and Border Protection and the U.S. Marshals Service.
Special Assistant U.S. Brittany Jensen is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless and until convicted through due process of law.CBP Officer Charged with BriberyRead the Press Release
McALLEN, Texas – A U.S. Customs and Border Protection (CBP) officer has been arrested on allegations he accepted a bribe and for exceeding his authorized access to gain information from a protected government computer, announced United States Attorney Kenneth Magidson.
Julio Trujillo, 30, of Mission, was taken into custody this morning. He is expected to make an initial appearance before U.S. Magistrate Judge Dorina Ramos tomorrow at 9:00 a.m.
The criminal complaint, filed Jan. 27, 2016, alleges Trujillo accepted $3,600 in exchange for agreeing to extend one individual’s visa and assisting another individual in obtaining a visa. After receiving the money, Trujillo also allegedly exceeded his access to a protected government computer. According to the charges, he performed a record query on one of the individuals on a government computer to obtain records from the Department of Homeland Security, Department of State and FBI relating to the individual.
If convicted of the bribery charge, he faces up to 15 years in federal prison. The exceeding access to a government computer carries a possible penalty of five years, upon conviction. Both convictions also carry as possible punishment a $250,000 fine.
The charges are the result of an investigation conducted by the FBI, and CBP - Internal Affairs. Assistant U.S. Attorneys Roberto Lopez Jr. and David Lindenmuth are 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.Militia Man Ordered to Federal PrisonRead the Press Release
BROWNSVILLE, Texas – A 46-year-old member of a citizen group known as “Rusty’s Rangers” or “Rusty’s Regulators” has been sentenced for illegal possession of a firearm, announced U.S. Attorney Kenneth Magidson. John Frederick Foerster, of Brownsville, was a convicted felon and pleaded guilty to possession of a 7.62 x 39 mm pistol on March 25, 2015.
Today, U.S. District Judge Andrew S. Hanen ordered Foerster to serve 30 months in federal prison to be immediately followed by three years of supervised release.
According to court records, Rusty’s Rangers consisted of citizens who mounted armed patrols in the Rio Grande area allegedly in search of and to possibly apprehend aliens attempting to enter the U.S. illegally. Foerster was observed in possession of the firearm by Border Patrol (BP) agents on Aug. 29, 2014. On that date, a BP agent thought Foerster was an armed alien smuggler and fired upon him. Foerster was not injured.
The Investigation led to the discovery that Foerster had been twice convicted of burglary and was, therefore, prohibited from possessing a firearm.
Foerster will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation was conducted by the FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives and Cameron County Sheriff’s Office. Assistant U.S. Attorney William Hagen is prosecuting the case.
Area Ambulance Company Owner Sentenced in Health Care Fraud SchemeRead the Press Release
McALLEN, Texas ‐ The owner of Vic’s Texas Transport, Inc. (dba Victory EMS) has been ordered to federal prison following his conviction of health care fraud and aggravated identity theft, announced U.S. Attorney Kenneth Magidson. Victor Lee Gonzalez, 28, of Mission, pleaded guilty Sept, 22, 2015.
Today, Chief U.S. District Judge Ricardo Hinojosa, handed Gonzalez a 30-month sentence for the fraud. He also received a mandatory 24-month term for the identity theft which must be served consecutively for a total sentence of 54 months in prison. He was further ordered to pay $458,904.45 in restitution. In handing down the sentence, Judge Hinojosa noted that the sentence was appropriate to promote respect for the law and to deter future criminal conduct of the defendant. Gonzalez will also be required to serve a term of three years of supervised release following completion of the prison term.
As part of the plea, Gonzalez admitted he submitted claims with Medicare and Texas Medicaid for reimbursement of ambulance transportation services that were not provided. To further execute his scheme to defraud, Gonzalez used the Texas Medicaid number of a patient to submit false and fraudulent billings to Texas Medicaid. The aggregate sum of the false and fraudulent claims submitted by Gonzalez was $1,080,213 to Medicare and Texas Medicaid. As a result of those fraudulent claims, Medicare and Texas Medicaid paid approximately $458,904.45.
Gonzalez, whose bond was previously revoked in the case, will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation was conducted by the U.S. Department of Health and Human Services‐Office of Inspector General and the Texas Attorney General’s Medicaid Fraud Control Unit. Assistant United States Attorneys Michael Day and Linda Requenez are prosecuting the case.
Ambulance Company Owners Agree to Pay More Than $245,000 to Resolve Kickback AllegationsRead the Press Release
HOUSTON – The former owner and operator of Houston-area ambulance company National Care EMS has agreed to settle allegations that he and the company provided kickbacks to various nursing facilities and hospitals in exchange for rights to the institutions’ more lucrative Medicare and Medicaid transport referrals, announced U.S. Attorney Kenneth Magidson along with Gregory Demske, Chief Counsel to the Inspector General of the U.S. Department of Health and Human Services - Office of Inspector General (HHS-OIG) and Special Agent in Charge CJ Porter, of HHS-OIG, Office of Investigations - Dallas Regional Office.
Mohammed Elsaleh, 27, of Sugar Land, formerly owned National Care EMS, which is no longer in business. The settlement calls for Elsaleh to pay $125,000 to resolve the “swapping” allegations made against him and the company. In addition, Elsaleh’s brother, Husam Alsaleh, 29, also of Sugar Land, the owner and operator of a successor company also called National Care EMS has agreed to pay $120,000, plus interest, in furtherance of the settlement.
“This settlement send a message that any alleged kickback or improper relationship among providers will not be tolerated,” said Magidson. “We will continue to hold those accountable that attempt to detrimentally impact the integrity of our health care system.”
The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by federal health care programs, including Medicare and Medicaid. The settlement announced today resolves allegations that Elsaleh and National Care EMS provided free and heavily discounted ambulance transports to various nursing facilities and hospitals in exchange for the institutions’ referral of other lucrative Medicare and Medicaid business to National Care EMS.
“This settlement sends a message to the health care industry that both sides of a swapping arrangement can be held responsible for their improper actions, not just the entity that actually bills Medicare or Medicaid for the services,” said Demske. “Any company or individual considering entering such schemes should understand that their actions may have serious legal and financial consequences.”
Medicaid is funded jointly by the states and the federal government. The state of Texas paid for some of the Medicaid claims at issue and will receive approximately $21,000 of the settlement amount.
“The Office of Investigations will continue to pursue all parties in improper swapping arrangements to insure legitimacy in health care expenditures across all service areas, including ambulance transports,” said Porter.
Today’s announcement also marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation.
The settlement was the result of a coordinated effort among the U.S. Attorney’s Office, HHS-OIG, HHS-OIG (Office of Counsel to the Inspector General) and the Texas Attorney General’s Office. Assistant U.S. Attorney Kenneth Shaitelman handled the case on behalf of the U.S. Attorney’s Office for the Southern District of Texas.
The claims resolved by this settlement are allegations only, and there has been no determination of liability.
Rockport Man Gets 30 Years for Producing Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – A 28-year-old Rockport man 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. Calvin Nesmith pleaded guilty Nov. 20, 2015.
Today, Senior U.S. District Judge Janis Graham Jack handed Nesmith a sentence of 360 months in federal prison. At the hearing, additional information was presented including evidence that he possessed more than 3,000 images and more than 360 videos of child pornography. Testimony was also provided that Nesmith requested advice on how to seduce a 14-year-old girl and discussed his desire to sexually abuse an eight-year-old relative. The court also heard about the images on his cell phone, much of which depicted prepubescent girls engaging in sexually explicit conduct with adult men, including bondage with handcuffs, etc. The further heard an impact statement from the victim. Nesmith was also 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 and will be required to register as a sex offender.
In June 2015, Nesmith was communicating with a person he believed was the mother of two minor female children. In reality, he was actually talking to an undercover Homeland Security Investigations (HSI) agent from Laredo. During the course of the communications, Nesmith made arrangements to meet and engage in sexual activity with the mother’s minor female children.
Nesmith also sent sexually explicit photographs depicting images of child pornography through text messages and emails to the undercover agent. The images were taken of a 14-year-old female while she was sleeping.
He was apprehended as he arrived at the designated meeting place. At the time of his arrest, Nesmith had several electronic devices and condoms with him. A forensic search of those electronic devices led to the discovery of an electronic image depicting Nesmith involved in sexually explicit conduct with a female minor.
Nesmith was arrested on the federal charges in September 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 Homeland Security Investigations with the assistance of the Corpus Christi Police Department – Internet Crimes Against Children Task Force.
This case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Laredoan Gets Nearly 16 Years for Methamphetamine ConvictionRead the Press Release
LAREDO, Texas – A 36-year-old Laredo man has been handed a significant sentence following his conviction of possession with intent to distribute methamphetamine, announced U.S. Attorney Kenneth Magidson. Victor Hugo Gonzalez pleaded guilty Aug. 25, 2015.
Today, visiting U.S. District Judge Janis Graham Jack ordered he serve 188 months in federal prison to be immediately followed by five years of supervised release.
On July 17, 2016, agents with Homeland Security Investigation (HSI) received information identifying a black Nissan Altima that would be used to transport narcotics. Laredo Police Department (LPD) officers and HSI special agents discovered the vehicle and performed a traffic stop.
Gonzalez was cited for driving without a license and consented to a search of the vehicle. With the assistance of an LPD canine, officers soon discovered two bottles in the backseat of anti-freeze with small crystals forming at the top. Agents tested the bottles and found that both bottles contained liquid methamphetamine with a combined gross weight of 8.55 kilograms.
Gonzalez admitted he picked up the bottles of anti-freeze from a truck driver in an industrial area in Laredo. He further added that he knew the bottles contained narcotics and that he was transporting the bottles to an unknown person.
As part of his sentence, Gonzalez will be required to complete an intensive drug treatment program and a mental health program while in prison.
He 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 HSI and LPD. Assistant United States Attorney Jorge Vela is prosecuting the case.
Five Sentenced in Conspiracy Related to Acquiring FirearmsRead the Press Release
HOUSTON – Four area men and another from Brownsville have been ordered to federal prison for a conspiracy to make false statements in the acquisition of firearms, announced United States Attorney Kenneth Magidson.
Martin Olivares Garza, 50, Martin Ivan Garza, 24, Christopher Steven Foreman, 24, and Ricardo Luna, 27, all of Houston, and Gabriel Kisabel Trejo-Torres, 25, of Brownsville, had all previously pleaded for their respective roles.
Today, U.S. District Judge Gray Miller ordered Olivares Garza to serve 51 months in federal prison, while Ivan Garza, Foreman, Trevor-Torres and Luna received respective sentences of 12, 13, 33 and 46 months of imprisonment.
The investigation revealed that during a six-month time period, several of these defendants and others conspired to purchase approximately 80 firearms from various gun dealers in the Houston area. In the purchases, they claimed they were the buyers of the firearms, but were actually straw purchasers for other people. The false statements were made on the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) form 4473s. Straw purchasers knowingly made false statements on those farms, claiming they were purchasing for themselves when they actually purchased for others who provided monies and directed them as to which types of firearms to buy.
Ivan Garza, Foreman, Luna, Trejo-Torres and others were paid additional money to make purchases of firearms for Olivares Garza and Rosendo Padilla Jr.
The firearms included an assortment of various types of handguns and rifles. Approximately 30 of the firearms have been recovered in Mexico and an additional 11 were recovered during the investigation.
Padilla, 40, of Houston, also pleaded guilty and will be sentenced next week. Three other Houston residents - Gustavo Albano Decesaris, 25, Rebecca Andrea Villareal, 31, and Yuliana Sugey Trejo, 31 - also pleaded guilty and are awaiting sentencing.
Olivares and Trejo-Torres are in custody. The others were permitted to remain on bond.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Houston Police Department, the Pasadena Police Department and the Texas Department of Public Safety. Assistant U.S. Attorney Glenn Cook is prosecuting the case.
Sex Offender Heads to Prison for Possession of Child Pornography…AgainRead the Press Release
LAREDO, Texas – A 44-year-old sex offender has been ordered to federal prison for nearly 20 years for failing to register and for possession of child pornography, announced U.S. Attorney Kenneth Magidson. Gamaliel Cortez-Mendoza, 44, of Laredo, pleaded guilty May 26, 2015.
Today, visiting Senior U.S. District Judge Janis Graham Jack ordered he serve 235 months and 120 months for the possession and failure to register convictions, respectively. The sentences will run concurrently. In handing down the sentence, Judge Jack statedthat people like the defendant create the market for child pornography and a lengthy sentence was necessary to protect the public based on his past conduct and inability to control himself. Cortez-Mendoza will be on supervised release for the rest of his life following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet.
Cortez-Mendoza was arrested in January following an investigation by the Laredo Child Exploitation Task Force led by Homeland Security Investigations and the Webb County Sheriff's Office Cyber Crime Unit with assistance from the Laredo Police Department, Texas Department of Public Safety and U.S. Marshals Service.
The Webb County Sheriff’s Office Cyber Crime Unit learned that an individual living at Cortez-Mendoza’s address had been downloading child pornography. Investigators then executed search warrants on Cortez-Mendoza’s home and computers. Forensic analysis later revealed numerous videos and pictures depicting child pornography. Cortez-Mendoza admitted downloading and viewing the videos.
Cortez-Mendoza had previously been convicted in 2004 of possessing child pornography in Harris County and was also required to register as a sex offender.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The case, prosecuted by Assistant U.S. Attorney Alfredo De La Rosa, was brought as part of 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 Officer and Co-Defendant Sentenced in Conspiracy to Traffic CocaineRead the Press Release
McALLEN, Texas – A former Rio Grande City Police investigator and another man have been ordered to federal prison following their conviction of conspiracy to possess with intent to distribute cocaine, announced U.S. Attorney Kenneth Magidson along with Special Agent in Charge Shane M. Folden of Homeland Security Investigations in San Antonio. Noel Pena, 29, of Rio Grande City was assigned to the Starr County High Intensity Drug Trafficking Aare Task Force. Also sentenced today was Hector Salinas-Hinojosa, 21, of Roma.
At the hearing, Chief Judge Ricardo Hinojosa ordered Pena to serve a total of 84 months in federal prison, while Salinas will serve a 60-month term. The sentences will be followed by five years of supervised release. In handing down the sentence, the court took into consideration not only their illicit activity but also the fact that each, independent of each other, had cooperated with authorities after their respective arrest.
“The court's sentence appropriately punished the two defendants in this case for their involvement in a major drug trafficking organization that had a negative impact on the Rio Grande Valley and other surrounding communities,” said Folden. “HSI will continue to utilize its broad authorities to dismantle criminal organizations who blatantly ignore the laws of this nation.”
Both men were arrested in mid-April after they conspired to provide a fake police report to an undercover officer acting as a cocaine trafficker. Per the criminal complaint issued at the time, on April 9, 2015, Salinas and Pena met with the undercover officer and agreed to provide a fake police report to make it appear that 10 kilograms of cocaine has been seized by law enforcement in exchange for $10,000. At the time of the meeting, the undercover officer provided $5,000 as a down payment for the report.
As part of the undercover operation, on April 11, 2015, two kilograms of cocaine were left a stash house location in Garceno. After being “tipped” off the location, Pena proceeded to the residence, “found” the cocaine and then obtained a state search warrant to seize it.
As part of the agreement, the undercover officer had provided two of the eight kilograms to establish an actual seizure. A week later, Salinas provide the report to officer and was paid the remaining $5,000.
At the time of his plea, Pena agreed that after Salinas provided the fake report, Pena met with him in the early evening hours at a cemetery in Rio Grande City. Salinas then paid Pena $1,500 for his services. Salinas had been able to provide the fake report based on the details in the search warrant provided by Pena earlier.
Both have been in custody since the day of their respective arrests where they 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, Drug Enforcement Administrations, Texas Department of Public Safety and the FBI with assistance from the Texas Rangers. Assistant U.S. Attorneys Juan F. Alanis and Ted Imperato are prosecuting the case.