Southern District of Texas

VICTORIA, Texas – A 28-year-old man residing in Victoria has been ordered to federal prison following his conviction of possession of child pornography, announced U.S. Attorney Kenneth Magidson. Sean Patrick Mciver entered a guilty plea Aug. 3, 2015.

Today, Senior U.S. District Judge John D. Rainey handed McIver a 72-month-sentence. McIver was further ordered to serve 10 years of supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. He will also be ordered to register as a sex offender.

At the time of his plea, the court heard that agents with Homeland Security Investigations (HSI), while using peer-to-peer software, were able to successfully download various files containing child pornography from an IP address that was associated with Mciver. In December 2014, agents executed a search warrant at Mciver’s residence, at which time they seized various electronic devices. Forensic analysis on those devices revealed more than 450 images and 24 videos of child pornography. Mciver admitted to using the peer-to-peer software to download the child pornography.

Mciver was arrested on the federal charges in March 2015 and has been in custody since the time where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

HSI investigated with the assistance of the Corpus Christi Police Department – Internet Crimes Against Children Task Force.

This case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."

HOUSTON – Regent Management Services L.P. has agreed to pay approximately $3.199 million to settle allegations that it received kickbacks from various ambulance companies in exchange for rights to Regent’s more lucrative Medicare and Medicaid transport referrals, announced U.S. Attorney Kenneth Magidson and 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.

Regent Management Services L.P. is headquartered in Galveston and manages 12 separately owned and operated nursing facilities including 11 in seven Texas cities.

The settlement is believed to be the first in the nation to hold accountable medical institutions (hospitals and skilled nursing facilities) rather than ambulance companies for these kind of ambulance “swapping” arrangements.

“This resolution is part of the government’s emphasis on combating health care fraud throughout the district and is an example of our determination to hold those accountable for their actions,” said Magidson. “Any type of improper behavior or arrangement in the industry is a serious allegation that we will not take lightly and we will pursue in order to protect the integrity of the 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 patients at Regent facilities received free or heavily discounted ambulance transports from various ambulance companies in exchange for Regent’s referral of other lucrative Medicare and Medicaid business to those same companies. If not for this kickback arrangement, Regent would have been financially responsible for the patient transports at significantly higher rates.

“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 $533,000 of the settlement amount.

In connection with the settlement, Regent has also entered into a corporate integrity agreement (CIA) with HHS-OIG. The corporate integrity agreement obligates Regent to undertake substantial internal compliance reforms for the next five years.  

“Swapping arrangements continue to be an area of concern throughout the ambulance industry,” said Porter. “Such improper arrangements among providers have the potential to negatively affect patient care and need to be aggressively pursued in order to protect the integrity of the federal health care programs and their beneficiaries.”

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.

McALLEN, Texas – A 61-year-old man has been convicted of one count of receipt of child pornography, announced U.S. Attorney Kenneth Magidson. Dennis Ray Frank, of Edcouch, admitted he engaged in inappropriate conversations with a minor female and received a sexually graphic image via email.

On Feb. 7, 2013, FBI agents received information from the National Center for Missing and Exploited Children that indicated a young female, approximately 13 years of age, could be a potential victim of sexual exploitation. Law enforcement soon uncovered the fact that Frank had engaged the minor female child in sexually explicit conversations on Facebook. Upon further investigation, it was determined that Frank had enticed the minor female child to send sexually graphic images of her genitalia to him via email. 

Law enforcement executed a search warrant on Frank’s email account, at which time they discovered the image that depicted the minor child’s genitalia. Frank admitted to receiving the child pornography image via his email account on Nov. 5, 2012. He further admitted he had been engaging in those inappropriate conversations and that the young girl had sent him the image.

U.S. District Judge Randy Crane accepted the guilty plea and set sentencing for Feb. 9, 2016. At that time, Frank faces a minimum of five and up to 20 years in federal prison and a possible $250,000 fine. He will remain in custody pending that hearing.

The charges are the result of an investigation conducted by the FBI.

This case, prosecuted by Assistant U.S. Attorneys Alex Benavides and Kimberly Ann Leo, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."

HOUSTON – A U.S. citizen from Georgetown and a citizen of Nigeria who was residing in Houston have been ordered to federal prison following their convictions related to a fraud scheme directed by Harris Dempsey “Butch” Ballow, announced U.S. Attorney Kenneth Magidson.

Christopher Harless, 62, of Georgetown, pleaded guilty Jan. 13, 2014, admitting he conspired to defraud victims Ballow’s scheme, while Sikiru Olubunmi, 46, entered his plea Nov. 5, 2014, to laundering the proceeds of the fraud scheme.

Today, U.S. District Judge Lee Rosenthal handed Harless a 240-month sentence. Bonojo received 63 month in federal prison. Both have been in federal custody since their arrests in 2010.

Ballow, 72, formerly of Galveston County, pleaded guilty to one count of money laundering in September 2003 and was permitted release pending sentencing. However, he fled to Mexico and remained a fugitive for more than five years. In 2005, while living in Mexico under the alias of “John Gel,” Ballow gained control of E-SOL International Corp. (E-SOL), a Nevada company with shares traded on the over-the-counter securities market under the symbol ESIT. Ballow then carried out a fraudulent scheme to sell stock in E-SOL and interests in a non-existent Mexican vacation resort supposedly developed by E-SOL to unsuspecting investors. The victims included citizens of the United States and Canada who wire transferred money to a bank account in the name of E-SOL at Wells Fargo Bank in Reno, Nevada.   

Harless is Ballow’s brother-in-law. As part of his guilty plea, Harless admitted he was aware that Ballow pleaded guilty to the money laundering charges but fled to Mexico instead of appearing at his sentencing. In 2008, Harless began helping Ballow to sell stock and investments in E-SOL. Harless led investors to believe Ballow’s name was John Gel or Tom Brown so they would not learn about his past criminal convictions or the fact that he was a fugitive. In 2009, Harless moved to Puerto Aventuras, Mexico, under the name “Chris Harris” and continued working with Ballow. In July of that year, Ballow fled from Puerto Aventuras and surfaced a few months later in Puerto Vallarta, Mexico, under the name Martin Twinley. However, Harless stayed in Puerto Aventuras and continued to meet with and mislead investors. On April 27, 2010, Harless spoke to an investor over the telephone. Without revealing that Tom Brown was not a real name, that “Tom Brown” had criminal convictions and was permanently barred from promoting securities, Harless attempted to convince the investor to purchase ESIT stock for $5 million.

Bonojo and Ballow met in prison in the fall of 2003 when they were both in custody on unrelated criminal charges. In 2004, after Bonojo’s release from prison, Bonojo helped Ballow obtain fraudulent British passports so Ballow could flee to Mexico. Bonojo also obtained a cell phone under a fake name in order to communicate with Ballow in Mexico. In 2006, Ballow began causing large sums of money to be wire transferred from E-SOL’s bank account at Wells Fargo to accounts controlled by Bonojo at banks in the Houston area, including an account in the name of Guiding Angels EMS Inc. at Trustmark National Bank. Bonojo admitted as part of his guilty plea that he knew the money sent from Wells Fargo was proceeds of some kind of felony, further acknowledging that he withdrew much of the money in cash in order to conceal and disguise its source. Bonojo used a lot of the cash to make payments Ballow directed, including to his grandson who was living in or near Houston.

Three others were also charged in this case - James David Wright, 60, of Corinth; Patrick Lanier, 67, of Austin; and Clarence LaFey Hudgens Jr., 59, of Lebanon, Oregon. Hudgens and Wright each pleaded guilty to conspiracy to commit wire fraud arising from the E-SOL stock sale scheme. Lanier was convicted Feb. 27, 2014, after a lengthy trial on 16 counts to include conspiracy to commit wire fraud, wire fraud, harboring and concealing Ballow from arrest and assisting a federal offender. They are set for sentencing Jan. 26, 2016.

A second, but related, case against Ballow and five others, including Ruben Garza Perez, is pending before Judge Ewing Werlein, Jr. Garza, 55, formerly of Houston, pleaded guilty in that case on July 17, 2015, to conspiracy to commit wire fraud arising from the sale of E-SOL stock. His sentencing is set for Feb. 5, 2016.

Ballow is in custody, while the other four are located in foreign countries. All five are considered innocent unless and until convicted through due process of law.

The cases were investigated by the FBI and Internal Revenue Service – Criminal Investigation with the assistance of the U.S. Marshals Service and U.S. Postal Inspection Service. The governments of Mexico and Canada also provided extensive and valuable assistance.

Assistant U.S. Attorneys John R. Lewis and Belinda Beek are prosecuting the case.

HOUSTON – Two men have been handed some of the largest sentences imposed in the Southern District of Texas following their convictions on multiple firearms charges and the violent robberies of mobile phone stores, announced U.S. Attorney Kenneth Magidson along with Robert Elder, special agent in charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives. A federal jury convicted Clarence Buck, 33, of Humble, and Kendal Allen, 24, of New Orleans, Louisiana, on all 14 and 11 counts, respectively, following an eight-day trial and approximately six hours of deliberation in August 2015.

Today, Buck was ordered to serve a total of 1,846 months in federal prison. Allen received 1,435 months.

Both men were convicted of conspiracy to interfere with commerce by robbery and five counts each of aiding and abetting interference with commerce by robbery and aiding and abetting using and carrying a firearm during and in relation to a crime of violence. Buck was also convicted of being a felon in possession of a firearm as well as an additional count of aiding and abetting interference with commerce by robbery and an additional count of aiding and abetting using and carrying a firearm during and in relation to a crime of violence.

U.S. District Judge David Hittner imposed the sentences this afternoon. Buck received 240 months for the conspiracy and aiding and abetting the robberies. Allen was ordered to serve 151 months for those offenses. Buck also received and additional term of 22 months for being a felon in possession of a firearm which was ordered to be served consecutively to his other term of imprisonment. On the first firearms conviction, Buck was further sentenced to 84 months followed by a consecutive 300 months for each of the subsequent five firearms charges which must be served consecutively to each other and consecutively to the other sentences. Allen received 84 months on his first firearms conviction followed by the consecutive 25 years for each of his four related offenses, all to be served consecutively.

In total, Buck and Allen were sentenced to serve 153 and 119 years in federal prison, respectively.  

Over the course of the trial, the government presented 19 witnesses and 96 evidentiary exhibits, which included surveillance videos, photos, cell phone tower analysis as well as specific firearms believed used in the crimes and items of jewelry and cell phones stolen in the crimes. 

According to the prosecution, on at least three occasions in November 2012, Buck assembled various crews to rob T-Mobile stores, stealing approximately 750 phones with a total approximate value of nearly $350,000. He also assembled a crew to rob the Houston Bargain Center which resulted in losses of approximately $500,000. After each robbery, Buck would sell the phones and other items and distribute the proceeds among the crews.

The first occurred on Nov. 2, 2012, when Buck assembled a crew to rob the location at 10961 North Freeway. Buck conducted surveillance outside, while three others entered the store. Allen and Deandre White were carrying handguns as they herded customers and store employees into a back room at gun point. A total of 314 phones were stolen. White, 23, of Houston, previously pleaded guilty in a related case and was sentenced to a term of federal imprisonment of 188 months. 

Four days later, on Nov. 6, 2012, Buck assembled a crew to rob the T-Mobile store located at 5819 Gulf Freeway. Buck again conducted surveillance, while White and Allen executed the robbery. Allen carried an AR-15 assault rifle, while White carried handgun. Customers and employees were forced into a back room at gun point, while 282 phones were taken.

On Nov. 13, 2012, Buck and a crew he had assembled targeted the T-Mobile store located at 2902 North Shepard. Allen and White again entered the store armed with handguns, while Buck was outside conducting surveillance. During the course of this robbery, testimony revealed Allen exited the store and assaulted a customer outside, wrestled him to the ground and attempted to drag him into the store. Customers and store employees were again held at gun point while they stole 149 phones.

Then on Nov. 23, 2012, Buck assembled another crew and targeted the Houston Bargain Center located at 10022 Homestead Road. Buck was outside, while nine masked men, including Allen - armed with an AR-15 assault rifle - entered the store and forced employees and customers to the ground. The robbers broke more than 15 glass display cases with hammers and removed the jewelry inside of them. The owners of the stores that were robbed reported a loss of more than $500,000. A search warrant was executed Nov. 28, 2012, at Buck’s residence in Humble which resulted in the recovery of a number of the items of jewelry stolen, more than $29,000 in cash and the AR-15 rifle used by Allen in the robbery.

The jury also heard that Buck was initially charged in state court, but posted bond. Authorities observed Buck as he assembled a crew that later committed a robbery of the T-Mobile store located at 8498 Sam Houston Parkway. He was arrested again July 24, 2013.

Buck’s defense attempted to convince the jury that he was not involved in the robberies or gun offenses. He claimed he only acted as a fence hired by others to sell the stolen property. Allen also tried to tried to tell the jury he was not involved. The jury did not believe them and found both men guilty as charged.

They will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

Eight others also pleaded guilty for their respective roles in the robbery conspiracy. Those include Michael George, 35, Russell Parker, 42, Shelton Watterson, 29, Danny Moore, 49, Son-Tanna Hewitt, 29, and Donald Holmes, 46, all of Houston; and Zeeshan Yasin, 24, and Rafey Khan, 25, of Karachi, Pakistan, but who resided in Houston.

The charges are the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Houston Police Department, the U.S. Marshals Service and the Harris County Sheriff’s Office. Assistant U.S. Attorneys Richard D. Hanes and Jennie Basile are prosecuting the case.

McALLEN, Texas – A 32-year-old man from Mexico has been ordered to prison after knowingly transporting an illegal alien within the United States for private financial gain, announced U.S. Attorney Kenneth Magidson. Victor Manuel Moreno-Ruiz pleaded guilty Sept. 2, 2015, further admitting that during the course of the illegal conduct, a female illegal alien died.

Today, U.S. District Judge Micaela Alvarez, who accepted the guilty plea, handed Moreno-Ruiz a 150-month sentence. At the hearing, additional evidence was presented including testimony from the case agent and the autopsy report. The agent testified that he had interviewed one of the undocumented aliens who was part of a group that Moreno-Ruiz was smuggling in August 2014. The undocumented alien reported that he witnessed a woman from the group fall off the bridge near the Pharr Port of Entry and land on the ground underneath. Unable to move due to her severe injuries, Moreno-Ruiz then ordered two other undocumented aliens to move the woman from the main road to a brushy area so as not to compromise the smuggling route. 

In handing down the sentence, Judge Alvarez noted that Moreno-Ruiz displayed a complete and callous disregard for the life of this woman.

At the time of his plea, Moreno-Ruiz admitted that on Aug. 4, 2014, he served as a foot guide responsible for smuggling a group of undocumented aliens into the United States. He instructed them how to walk along the side of the bridge and how to scale down from it at the Pharr Port of Entry. He further admitted that he left the injured woman behind and continued to smuggle the remaining members of the group.

The next day, law enforcement officers discovered the deceased body of the female victim. An autopsy revealed she had died as a result of blunt force trauma due to a fall.

Moreno-Ruiz will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. As an illegal alien himself, Moreno-Ruiz is expected to face deportation proceedings following his release from prison.

The charges were the result of an investigation conducted by Homeland Security Investigations with assistance by Border Patrol, Pharr Police Department and Hidalgo County Sheriff’s Office. Assistant U.S. Attorneys Kimberly Ann Leo and Alex Benavides are prosecuted the case. 

HOUSTON – With the guilty plea of the final defendant today, a total of four men have now been convicted for their participation in a robbery crew that committed more than 30 different armed robberies throughout Houston, announced U.S. Attorney Kenneth Magidson.

Jerrol Bluford, 22, entered his guilty plea today, while co-conspirators Calvin Smith, 19, Jamone Jones, 21, and Rodney Ford, 18, had previously entered guilty pleas Aug. 28, Oct. 26, and Nov. 4, 2015, respectively. 

Between Jan. 9, 2015, and Jan. 25, 2015, the four men committed approximately 31 armed robberies of a variety of establishments, including restaurants, stores and phone companies.  During each robbery, at least one member of the crew brandished a weapon against both store employees and customers.

Bluford pleaded guilty to one count of conspiracy to interference with commerce by robbery and two counts of brandishing a weapon during a commercial robbery. He faces up to 20 years for the conspiracy and a possible $250,000 maximum fine. For the first count of brandishing a weapon, he faces an additional mandatory seven years which must be served consecutively to the underlying conspiracy. The second conviction of brandishing a weapon carries a 25-year mandatory term which also must be served consecutively to the other sentences. Smith, Jones and Ford all also pleaded to the same charges and face the same penalties.

U.S. District Judge David Hittner has set sentencing for Feb. 16, 2016. All of the defendants have been and will remain in custody pending their sentencing hearing.

These charges arose from an investigation conducted by the FBI, Harris County Sherriff’s Office and Houston Police Department. Assistant U.S. Attorney Julie Searle is prosecuting the case.

A Texas man was sentenced today to 63 months for his role in a $3.4 million scheme to defraud Medicare, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Kenneth Magidson of the Southern District of Texas, Special Agent in Charge CJ Porter of the U.S. Department of Health and Human Services-Office of the Inspector General (HHS-OIG) Dallas Region, Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office and the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU).

Huey P. Williams Jr., 46, of Katy, Texas, was sentenced by U.S. District Judge Melinda Harmon of the Southern District of Texas.  In addition to imposing the sentence, Judge Harmon ordered Williams to pay $1.96 million in restitution.  Williams owned and operated Hermann Medical Supplies Inc. and Hermann Medical Supplies II (collectively Hermann Medical), two Houston-area durable medical equipment (DME) companies.

On March 11, 2015, following a three-day trial, a jury convicted Williams of one count of healthcare fraud.  According to the evidence presented at trial, from December 2006 through July 2010, Williams owned and operated Hermann Medical Supplies Inc. and Hermann Medical Supplies II (collectively Hermann Medical), two Houston-area durable medical equipment (DME) companies.  Through these companies, Williams oversaw a scheme to defraud Medicare by submitting approximately $3.4 million in false and fraudulent DME claims.  Specifically, Williams caused Hermann Medical to bill Medicare for components of an “arthritis kit,” which included expensive, rigid braces and orthotics with adjustable joints that required fitting and adjustment, when in reality, Williams never purchased any of the expensive braces and instead purchased and provided to beneficiaries only inexpensive, flimsy neoprene braces and equipment, to the extent he provided any equipment at all.  Medicare paid Hermann Medical $1.96 million on these claims.

The FBI, HHS-OIG and Texas MFCU investigated the case.  The case was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Southern District of Texas.  Trial Attorneys Ashlee C. McFarlane and Jason Knutson of the Criminal Division’s Fraud Section prosecuted the case.

 Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged over 2,300 defendants who collectively have billed the Medicare program for over $7 billion.  In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to www.stopmedicarefraud.gov.

McALLEN, Texas ‐ A McAllen area doctor has been convicted of health care fraud and aggravated identity theft, announced U.S. Attorney Kenneth Magidson. Dr. Eduardo Carrillo, 42, of Edinburg, entered his guilty plea today before U.S. District Judge Randy Crane. Also convicted today was his assistant - Martha Uribe Medrano, 48, of Edinburg.

As part of his plea, Carrillo admitted he attempted to cause others to bill Medicare for patients who were deceased on the dates that Carrillo claimed to have provided services to the patients. Carrillo submitted fraudulent documentation to a billing company so that the company would file claims with Medicare for reimbursement of physician services. Records obtained by law enforcement show that the patients were deceased on the dates that Carrillo alleged to have provided services to the patients.

Carrillo also admitted to engaging in a scheme with his co-conspirator and assistant, Medrano, to solicit and obtain illegal kickbacks in exchange for patient referrals. Carrillo and Medrano solicited and obtained cash in exchange for referrals of Medicare beneficiaries. Carrillo admitted he used the Medicare number and personal information of a patient in the illegal kickback exchange. Medrano pleaded guilty to illegal remunerations for her role in the scheme.  

Sentencing for both Carrillo and Medrano has been set for Feb. 3, 2016, at 2:00 p.m. At that time, Carrillo faces a maximum of 10 years in federal prison and a possible $250,000 fine. He also faces a mandatory two-year additional prison term which must be served consecutively to any other sentence imposed. For her conviction, Medrano faces a maximum of five years and a $25,000 possible fine.  

Both were permitted to remain on bond pending that hearing.

The investigation leading to the charges was conducted by the Department of Health and Human Services‐Office of Inspector General and the FBI. Assistant United States Attorney Michael Day is prosecuting the case.

HOUSTON – A jury has returned a guilty verdict against a former staff physician for the City of Houston of 14 counts of health care fraud in a $1 million health care fraud scheme, announced U.S. Attorney Kenneth Magidson. Jocelyn Pyles, M.D., 58, was convicted today following a 3 ½ day trial in Houston.

The jury heard that Pyles worked full-time for the City of Houston and had entered into various agreements with the owner of Elite P. Medical Clinic that resulted in $1 million in health care claims being billed under her Medicare and Medicaid provider numbers.

The jury found Pyles guilty of 14 individual health care fraud counts that related to physician office visits and physical therapy services that she did not provide because she was actually working for the City of Houston at the time. In actuality, an unlicensed foreign medical graduate, who did not have a license, saw all the patients at the clinic alone. He was instructed not to sign patient progress notes at those visits. Pyles would come to the Houston location of the clinic after hours, when there were no patients present and then sign the treatment notes to make it appear she saw the patients when she did not.

The jury also heard that Pyles occasionally went to the Port Arthur location of the Elite clinic on Fridays during business hours, but still did not see patients. Again, the unlicensed foreign medical graduate saw the patients alone. 

That individual testified at trial, identifying his handwriting and explaining what he did with the patients. The owner of the clinic, who had previously pleaded guilty for her role in the scheme testified that Pyles received $135,000 from her during the criminal activity.

Pyles is scheduled for sentencing on Feb. 1, 2016, at which time she faces up to 10 years in prison and a possible $250,000 fine on each count of conviction.

The conviction was the result of a joint investigation conducted by agents from the Department of Health and Humans Services – Office of Inspector General, FBI, and the Texas Attorney General’s Office - Medicaid Fraud Control Unit with assistance of Medicare Zone Program Integrity Contractor, Health Integrity LLC. Assistant U.S. Attorney Julie Redlinger and Special Assistant U.S. Attorney Rodolfo Ramirez prosecuted the case.

HOUSTON – A foreign national pleaded guilty today to conspiracy and a human smuggling charge for her role in a scheme to smuggle undocumented migrants from India into the United States, announced U.S. Attorney Kenneth Magidson and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division along with Special Agent in Charge Shane Folden of Homeland Security Investigations (HSI) in San Antonio.

On April 23, 2015, Rosa Astrid Umanzor-Lopez, 36, a citizen of Guatemala, was extradited to the United States from Guatemala to face one count of conspiracy to smuggle undocumented migrants into the United States for profit and five counts of human smuggling charges in the Southern District of Texas. 

At the plea hearing and in related court documents, Umanzor-Lopez admitted that between January 2011 and her arrest in Guatemala on Feb. 4, 2014, she and other conspirators recruited individuals in India who were willing to pay large sums of money to be smuggled into the United States. For their smuggling operations, Umanzor-Lopez and her co-conspirators used a network of facilitators to transport groups of undocumented migrants from India through South America and Central America and then into the United States by air travel, automobiles, water craft and foot. Many of these smuggling events involved illegal entry into the United States via the U.S.-Mexico border near McAllen and Laredo.

To this date, three co-conspirators have been convicted and sentenced. Umanzor-Lopez’s sentencing hearing is scheduled for March 4, 2016, in Houston. 

The investigation was conducted by HSI agents in McAllen and Houston, with the assistance of U.S. Customs and Border Protection’s Alien Smuggling Interdiction Unit. This case is being prosecuted jointly by Assistant U.S. Attorneys Leo J. Leo III and Casey MacDonald and Trial Attorney Ann Marie E. Ursini of the Criminal Division’s Human Rights and Special Prosecutions Section. The Criminal Division’s Office of International Affairs provided significant support with the defendant’s extradition. 
 

The investigation was conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI. The ECT program focuses on human smuggling networks that may present particular national security or public safety risks, or present grave humanitarian concerns. ECT has dedicated investigative, intelligence and prosecutorial resources. ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.

A foreign national pleaded guilty today to conspiracy and a human smuggling charge for her role in a scheme to smuggle undocumented migrants from India into the United States, announced Assistant Attorney General Leslie R. Caldwell of the Criminal Division, U.S. Attorney Kenneth Magidson for the Southern District of Texas and Special Agent in Charge Shane Folden of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) in San Antonio.

On April 23, 2015, Rosa Astrid Umanzor-Lopez, 36, a citizen of Guatemala, was extradited to the United States from Guatemala to face one count of conspiracy to smuggle undocumented migrants into the United States for profit and five counts of human smuggling charges in the Southern District of Texas. 

At the plea hearing and in related court documents, Umanzor-Lopez admitted that between January 2011 and her arrest in Guatemala on Feb. 4, 2014, she and other conspirators recruited individuals in India who were willing to pay large sums of money to be smuggled into the United States.  For their smuggling operations, Umanzor-Lopez and her co-conspirators used a network of facilitators to transport groups of undocumented migrants from India through South America and Central America and then into the United States by air travel, automobiles, water craft and foot.  Many of these smuggling events involved illegal entry into the United States via the U.S.-Mexico border near McAllen and Laredo, Texas.

To this date, three co-conspirators have been convicted and sentenced.  Umanzor-Lopez’s sentencing hearing is scheduled for March 4, 2016 in Houston.

The investigation was conducted by ICE-HSI agents in McAllen, with the assistance of U.S. Customs and Border Protection’s Alien Smuggling Interdiction Unit.  This case is being prosecuted jointly by Trial Attorney Ann Marie E. Ursini of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorneys Leo J. Leo III and Casey MacDonald of the Southern District of Texas.  The Criminal Division’s Office of International Affairs provided significant support with the defendant’s extradition. 

The investigation was conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI.  The ECT program focuses on human smuggling networks that may present particular national security or public safety risks, or present grave humanitarian concerns.  ECT has dedicated investigative, intelligence and prosecutorial resources.  ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.

CORPUS CHRISTI, Texas – A 42-year-old man who resided in Dallas has been ordered to federal prison following his conviction of sexual exploitation of a child, otherwise known as production of child pornography, announced U.S. Attorney Kenneth Magidson. Daniel Fredrick Heidemann admitted to posing as a young male in order to elicit sexually explicit photos from a juvenile female.

Today, U.S. District Judge Nelva Gonzales Ramos handed Heidemann a sentence of 200 months. Additional information was also presented today, including that there were victims in Ohio and Oregon. Heidemann will serve 20 years of supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. He will also be ordered to register as a sex offender.

At the time of the plea, the court heard that in August 2014, authorities learned that a juvenile female had been communicating via cellular telephone text messages and several social media websites with an individual she believed was a juvenile male from Dallas. Heidemann was identified as the perpetrator and admitted to posing as a juvenile male and enticing the victim into sending him sexually explicit photographs of herself.

Authorities executed a search warrant at Heidemann’s residence in Dallas and seized several electronic media storage devices. Forensic examination led to the discovery of several photographs of the juvenile female that were sexually explicit in nature.

Heidemann was arrested on the federal charges in March 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 are the result of an investigation 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."

McALLEN, Texas – A 19-year-old man from Houston has been handed a federal prison sentence following his conviction of importing methamphetamine into the U.S., announced U.S. Attorney Kenneth Magidson. Jose Manuel Trevino Jr. pleaded guilty Nov. 24, 2014.

Today, U.S. District Judge Micaela Alvarez considered Trevino’s young age and ordered to him to serve a total of 75 months in federal prison to be followed by three years of supervised release. In handing down the sentence, Judge Alvarez also noted that this was a serious crime because of how lethal methamphetamine is and that it can be so quick to that lethality.

On Aug. 15, 2014, Trevino was intercepted by a Texas State trooper after he drove his vehicle into the U.S. from Mexico through the Pharr Bridge. Upon investigation, authorities discovered 11 kilograms of methamphetamine hidden within several false compartments in the vehicle’s front fender area.

Trevino admitted he knew he was importing controlled substances into the U.S. and was going to be paid for delivering the narcotics further into the interior of the United States.

Trevino 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 the Texas Department of Public Safety. Assistant U.S. Attorney David A. Lindenmuth prosecuted the case.

McALLEN, Texas – A naturalized U.S. citizen residing in Houston has been ordered to federal prison following his conviction in McAllen federal court to conspiring to commit money laundering, announced U.S. Attorney Kenneth Magidson. Alejandro Morales-Flores, 60, pleaded guilty April 16, 2015.

Today, U.S. District Judge Randy Crane handed Morales-Flores a 63-month sentence. After he finishes his prison sentence, he will be on supervised release for three years. 

On Oct. 24, 2014, Morales-Flores was driving a tractor-trailer from Houston to the Rio Grande Valley. A trooper with the Texas Department of Public Safety (DPS) stopped him near San Manuel for a traffic violation as he was heading to the Valley. His trailer was found to be empty, but a search resulted in the discovery of several bags containing a total of $1,413,255 in U.S. currency hidden in the sleeper compartment.

Morales-Flores admitted he knew the money was drug trafficking proceeds and that he was being paid to deliver it to unknown individuals in the Rio Grande Valley area. 

Morales-Flores was permitted to remain on bond and voluntarily surrender to the U.S. Marshals Service by Dec. 7, 2015, to begin serving his sentence.

The charges are the result of an investigation by the Drug Enforcement Administration with assistance from DPS. Assistant U.S. Attorney Joseph Leonard is prosecuting the case.

McALLEN, Texas ‐ Oscar Ivan Romero-Martinez, 33, of Tamaulipas, Mexico, has been ordered to federal prison for nearly six years as a result of his conviction of harboring undocumented aliens, announced U.S. Attorney Kenneth Magidson. Romero pleaded guilty Aug. 6, 2015.

Today, U.S. District Judge Randy Crane sentenced Romero to 71 months imprisonment. The sentence was enhanced as the court took into consideration the testimony of a female undocumented alien from Guatemala whom Romero sexually assaulted on more than one occasion while he harbored her at a location in Mission. The court also considered the total number of aliens he had harbored at the apartment and that a co-conspirator had brandished a dangerous weapon while the aliens were being harbored, among other factors.

On or about June 30, 2015, Border Patrol agents were conducting surveillance at an apartment complex in Mission when they observed a parked car that had been reported stolen out of Edinburg. Consequently, they notified local authorities who responded to the location and soon encountered Romero. He fled on foot, but was subsequently apprehended. A total of 16 undocumented aliens were ultimately discovered in one of the apartments where Romero had been harboring them. 

During the course of the investigation, authorities learned that Hector De Leon-Ramirez had transported the female undocumented alien from Brownsville to Mission. He was subsequently charged with harboring additional undocumented aliens in a building in Mission and pleaded guilty Sept. 2, 2015. De Leon, 44, a citizen of Mexico who held permanent resident alien status and was living in Penitas, later received a sentence of 18 months imprisonment.  

The investigation leading to the charges was conducted by Homeland Security Investigations, Border Patrol and Edinburg Police Department. Assistant U.S. Attorney Linda Requénez prosecuted the case.

CORPUS CHRISTI, Texas – A 32-year old Corpus Christi man has been ordered to federal prison following his conviction of distribution of child pornography, announced U.S. Attorney Kenneth Magidson. James Parrott pleaded guilty July 29, 2015.

Today, Senior U.S. District Judge John D. Rainey handed Parrott a term of 108 months in federal prison. The sentence will be immediately followed by a term of five years on supervised release during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet.

At the time of his guilty plea, the court heard that detectives with the Corpus Christi Police Department, while using peer-to-peer software, were able to successfully download various files containing child pornography from an IP address that was associated with Parrott. As a result of this information, the FBI office in Corpus Christi was contacted to assist in the investigation.

In January 2015, agents executed a search warrant at Parrott’s residence, at which time they seized various electronic devices. Forensic analysis on those devices revealed more than 1,000 images and more than 120 videos of child pornography. Parrott admitted to using the peer-to-peer software to download child pornography.

Parrott was arrested on the federal charges in June 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 FBI investigated with the assistance of the Corpus Christi Police Department.

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."

BROWNSVILLE, Texas – A 35-year-old Houston man has been ordered to federal prison following his conviction related to the trafficking of 4.99 kilograms of methamphetamine, announced U.S. Attorney Kenneth Magidson. A federal jury sitting in Brownsville convicted Derrick Hargrove on all four counts as charged following a three-day trial in March 2015.

Today, U.S. District Judge Andrew S. Hanen, who presided over the trial, handed Hargrove a 180-month sentence to be immediately followed by five years of supervised release.

The jury heard that Hargrove crossed from Mexico into the U.S. on Oct. 9, 2014, at the Gateway Port of Entry pedestrian lane with a suitcase. Upon inspection, a Customs and Border Protection (CBP) officer felt something in the suitcase, x-rayed it and observed two packages inside. A search revealed 4.99 kilograms of pure crystal methamphetamine.                                          

Hargrove initially claimed ownership of the suitcase, but later claimed a stranger in Mexico gave it to him on the streets of Mexico. He claimed the stranger asked him to deliver the suitcase to a person he knew who was helping Hargrove get a liquor license for a nightclub he was allegedly opening in Matamoros.

Hargrove is from Houston but had been living in Matamoros after losing his job.

He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

The case was investigated by Homeland Security Investigations and CBP. Assistant U.S. Attorneys Karen Betancourt and Justin Dinsdale prosecuted the case.

CORPUS CHRISTI, Texas - A 34-year-old Corpus Christi resident has been sentenced to prison following his conviction for possession with intent to distribute cocaine base, also known as crack cocaine, announced U.S.  Attorney Kenneth Magidson. Shane Lucas Winn pleaded guilty Aug. 31, 2015.

Today, Senior U.S. District Judge Hayden Head sentenced Winn to 36 months in federal prison to be followed by three years of supervised release. In handing down the sentence, the court noted the sincerity of the defendant in wanting to turn his life around for his kids. Winn had noted that he did not want his children to grow up without a father like him and make the same bad choices as he had done.

In April 2013, law enforcement officers with the Texas Department of Public Safety (DPS) conducted a series of narcotics search warrants at residences in Corpus Christi. During the enforcement actions, officers seized approximately 25 grams of crack cocaine and approximately 250 grams of cocaine. Winn admitted to purchasing the powder cocaine and then “cooking” the crack to be sold. Winn was arrested by federal agents on the charge in July 2015.

Winn will remain in custody and serve his sentence at a U.S. Bureau of Prisons facility to be designated in the near future.

The charge stems from an investigation conducted by Homeland Security Investigations and DPS. Assistant U.S. Attorney Lance Watt is prosecuting the case.

CORPUS CHRISTI, Texas – Matthew Victor Hernandez, 27, of Bishop, has been ordered to federal prison following his conviction of possession of child pornography, announced U.S. Attorney Kenneth Magidson.

Today, Senior U.S. District Judge John D. Rainey sentenced Hernandez to 84 months in prison to be immediately followed by a 10-year-term of supervised release during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. He will also be ordered to register as a sex offender.

On Sept. 3, 2014, authorities began investigating Hernandez for allegations involving the sexual abuse of a minor girl. The victim was identified, confirmed the abuse and also reported receiving inappropriate and threatening text messages from Hernandez. A forensic examination of Hernandez’s phone led to the discovery of more than 175 images and nine videos of children involved in sexual explicit conduct. Law enforcement also located several text messages Hernandez sent to the minor girl threatening to kill her if she reported the abuse. 

At the time of his arrest, Hernandez was in possession of second phone. A forensic examination of this phone led to the discovery of more than 195 images of children involved in sexual explicit conduct.

Hernandez admitted to possessing the images and sending the threatening text messages to the minor girl.

He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

The charges against Hernandez were the result of an investigation conducted by FBI, Texas Rangers 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."

HOUSTON – Two area men have been sentenced for their of engaging in a conspiracy to commit bank fraud and aggravated identity theft by using skimming devices on bank ATM machines in and around Houston, announced U.S. Attorney Kenneth Magidson. Bernard Nwachan Akwar, 28, of Houston, and Tokunbo Patrick Aiyewa, 28, of Sugar Land, both had pleaded guilty, admitting to the placement of skimming devices on bank ATM machines in order to obtain information from customer cards.

Today, U.S. District Judge Kenneth M. Hoyt handed Akwar a 24-month-term of imprisonment for his conviction for aggravated identity theft, while Aiyewa was ordered to serve a sentence of 15 months in federal prison for the conspiracy plus a consecutive sentence of 24 months for the aggravated identity theft conviction resulting in a total sentence of 39 months. They were each also ordered to pay $20,957.43 in restituition.

Aiyewa and Akwar were accused of installing skimming devices on bank ATM machines in the Houston area. Surveillance photos had captured images of both defendants at these machines, some of which revealed they attempted to disguise their identity by wearing a wig with dreadlocks. On two occasions in April and May 2014, the two men were observed placing a skimmer on ATM machines which resulted in their ability to obtain information from a total of 24 customer cards on those two days.

Once the skimming device was removed from the ATM, Aiyewa used a computer and encoding machine to download customer banking information and re-encoded used gift cards with the stolen information. Aiyewa and Akwar checked victims’ bank balances removed money from some of the accounts. In addition, the loaded gift cards and other debit cards were used to make purchases in the thousands of dollars.

Agents attempted to arrest Aiyewa and Akwar in the parking lot of the West Oaks Mall on May 21, 2014. Akwar was taken into custody, but Aiyewa attempted to flee. Aiyewa drove his car in the direction of an arresting agent who had to jump out of the way of the vehicle, leaving the parking lot at a high rate of speed. Later, he was found driving a different vehicle and agents followed him. He continued to drive erratically, running numerous stop signs. He was eventually stopped and agents found an unsecured five-year-old child in the back seat.

At the time of their arrests, Akwar was found in possession of numerous pre-paid debit cards that were acquired using the stolen customer information obtained through the skimming device, while agents discovered in Aiyewa’s possession several gift cards as well as a MasterCard debit card in the name of one of the victims. In addition, agents also found the same or a similar wig seen in the photos as they attempted to disguise themselves.

The investigation also revealed that a compromised card number had been used to purchase iPads which investigators observed being passed between Aiyewa and Akwar at the time of their arrest.

Akwar will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. Aiyewa was allowed to remain on bond until Dec. 11, 2015, when he is required to surrender to federal authorities.

This investigation was conducted by the U.S. Secret Service and its Houston Area Fraud Task Force. Assistant U.S. Attorney Melissa Annis is prosecuting the case.

The U.S. District Court for the Southern District of Texas unsealed an indictment today charging two elected members of the School Board of Donna, Texas, with bribery and attempted extortion in connection with a services contract held by the Donna Independent School District (DISD).  A private citizen who served as a middleman in the scheme also was charged.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas made the announcement.

Eloy Infante, 53, Elpidio Yanez Jr., 45, and Adrian Guerrero, 50, all from Donna, were charged in a four-count indictment returned on Oct. 27, 2015, in the Southern District of Texas with one count of conspiracy, one count of attempted extortion and two counts of federal programs bribery.  Infante and Yanez are both members of the Donna School Board and Guerrero is a private citizen.

According to the indictment, from February 2015 through May 2015, the defendants allegedly attempted to extort, and solicited and accepted bribes from, an individual whose company provided services to the DISD.  Specifically, the indictment alleges that the defendants informed the individual that, in order for his company to keep its contract with the DISD, he needed to pay Infante and Yanez $10,000 each.  The indictment alleges that both Infante and Yanez accepted partial payment of the $10,000, and that Guerrero served as the middleman for one of the payments.

The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

This case was investigated by the FBI.  The case is being prosecuted by Trial Attorney Monique Abrishami of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Leo J. Leo III of the Southern District of Texas.   

McALLEN, Texas - The U.S. District Court for the Southern District of Texas unsealed an indictment today charging two elected members of the School Board of Donna with bribery and attempted extortion in connection with a services contract held by the Donna Independent School District (DISD). A private citizen who served as a middleman in the scheme also was charged. 

U.S. Attorney Kenneth Magidson and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division made the announcement.

Eloy Infante, 53, Elpidio Yanez Jr., 45, and Adrian Guerrero, 50, all from Donna, were charged in a four-count indictment returned Oct. 27, 2015, with one count of conspiracy, one count of attempted extortion and two counts of federal programs bribery. Infante and Yanez are both members of the Donna School Board and Guerrero is a private citizen. 

According to the indictment, from February 2015 through May 2015, the defendants allegedly attempted to extort, and solicited and accepted bribes from, an individual whose company provided services to the DISD. Specifically, the indictment alleges that the defendants informed the individual that, in order for his company to keep its contract with the DISD, he needed to pay Infante and Yanez $10,000 each. The indictment alleges that both Infante and Yanez accepted partial payment of the $10,000, and that Guerrero served as the middleman for one of the payments.

This case was investigated by the FBI. Assistant U.S. Attorney Leo J. Leo III and Trial Attorney Monique Abrishami of the Criminal Division’s Public Integrity Section are prosecuting the case.    

An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.

HOUSTON – With the guilty plea of the final defendant today, a total of six men have now been convicted for their varying roles in an international sex trafficking of minors conspiracy, announced U.S. Attorney Kenneth Magidson.

Jose William Quintanilla, 40, entered his plea today after the jury was seated and testimony was set to begin. Two others – Adelio De Jesus Batres, 52, and Hugo Alexander Melendez-Gonzalez, 37 - pleaded before trial began this week, while the remaining three – Francis Yuvinni Guerra Pleitez, 33, Walter Alexander Ejcalon Xalcut, 27, and Mariano Quintanilla-Campos, 33 – had previously entered guilty pleas in the case.

With the exception of Xalcut, who is from Guatemala, the defendants are originally from El Salvador. All had been residing in the Houston area.

Court records demonstrated that from late 2010 to the present, the men conspired to cause persons less than 18 years of age to engage in commercial sex acts. The men employed women and underage girls, transported them to various apartments for the purpose of engaging in sex and shared in the proceeds derived from the illegal activity. Most, if not all, of the females were also aliens illegally within the U.S.

With the exception of Melendez-Gonzalez, who admitted to sex trafficking of a particular minor, the remaining defendants were all convicted of engaging in the overall sex trafficking of minors conspiracy. All six men face up to life in federal prison as well as a possible $250,000 maximum fine.

U.S. District Judge David Hittner has set sentencing for Feb. 9, 2015.

All of the defendants had been and will remain in custody pending their sentencing hearing.

The charges arose from an investigation conducted by the FBI, Harris County Sheriff’s Office, Houston Police Department, Homeland Security Investigations and Texas Department of Public Safety. Assistant U.S. Attorneys Julie Searle and Douglas Davis are prosecuting the case.

CORPUS CHRISTI, Texas – Calvin Nesmith, 28, of Rockport, has entered a guilty plea to sexual exploitation of a child, otherwise known as production of child pornography, announced U.S. Attorney Kenneth Magidson.

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.

Senior U.S. District Judge Janis Graham Jack accepted the guilty plea today and set sentencing for Jan. 21, 2016, at which time Nesmith faces a minimum of 15 and up to 30 years in federal prison. Upon completion of any prison term imposed, Nesmith 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.

Nesmith was arrested on the federal charges in September 2015 and has been in custody since that time where he will remain pending his sentencing hearing.

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."

CORPUS CHRISTI, Texas – An illegal alien from Mexico has been handed a federal prison sentence following his conviction of conspiracy to transport illegal aliens, United States Attorney Kenneth Magidson announced today along with Brian Moskowitz, special agent in charge of Homeland Security Investigations (HSI). Jose Isabel Paz-Martinez, 28, pleaded guilty to the charge July 23, 2015, admitting the conspiracy resulted in the death of a young woman.

Today, U.S. District Judge Nelva Gonzales Ramos sentenced Paz-Martinez to 108 months years in federal prison. The sentence was enhanced as the court found he was a leader/organizer in the conspiracy. As  an illegal alien, he is expected to face deportation proceedings following his release from prison.

The conspiracy lasted from Jan. 1, 2014, to Dec. 18, 2014. Paz-Martinez was responsible for coordinating the transportation of illegal aliens from Border Patrol checkpoints to Houston. His role included obtaining vehicles and hiring drivers to transport the illegal aliens. Approximately 87 illegal aliens had been transported during the course of the conspiracy.

On June 10, 2014, a 21-year old woman from El Salvador was with a group of illegal aliens picked up in a truck driven by one of Paz-Martinez’s drivers. As the woman was trying to climb into the back of the truck, the truck sped away prematurely and she slipped and fell onto the highway. Soon after, she was run over by a tractor trailer.

Paz-Martinez 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 HSI and is being prosecuted by Assistant United States Attorney Chad W. Cowan.

The owners, the director of nursing and patient recruiters of a home-health agency based in Houston were arrested early this morning for their alleged roles in conspiracies to defraud Medicare, to pay illegal healthcare kickbacks and to commit money laundering.  The defendants were charged in an indictment unsealed earlier today.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Kenneth Magidson of the Southern District of Texas, Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office, Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services-Office of the Inspector General (HHS-OIG) Dallas Regional Office and Special Agent in Charge D. Richard Goss of the Internal Revenue Service-Criminal Investigation Division (IRS-CI) Houston Field Office made the announcement.

According to the indictment, Ebong Tilong, 51, and Marie Neba, 51, both of Sugar Land, Texas, used the Texas-based, home-health agency that they owned to bill Medicare for home-health services that were not provided or not medically necessary.  They allegedly orchestrated this scheme by paying kickbacks to a series of individuals.  First, Tilong and Neba allegedly paid illegal kickbacks to physicians in exchange for authorizing medically unnecessary home-health services.  Using the money that Medicare paid for such fraudulent claims, Tilong and Neba allegedly paid illegal kickbacks to Daisy Carter, 56, of Wharton, Texas, and Connie Ray Island, 48, of Houston, in exchange for referring Medicare beneficiaries for home-health services.  Finally, all four defendants allegedly paid illegal kickbacks to Medicare beneficiaries, in exchange allowing Tilong and Neba to bill Medicare using their Medicare information for home-health services that were not medically necessary or not provided.  Neba, who also served as the company’s director of nursing, also allegedly falsified medical records to make it appear that Medicare beneficiaries qualified for and received home-health services.  From in or around February 2006 to in or around June 2015, Tilong and Neba received approximately $13 million for these allegedly fictious or unnecessary home-health services. 

An indictment is merely a formal accusation.  The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. 

The case was investigated by the FBI, HHS-OIG and IRS-CI under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Southern District of Texas.  The case is being prosecuted by Trial Attorney William S.W. Chang of the Criminal Division’s Fraud Section. 

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 2,300 defendants who have collectively billed the Medicare program for more than $7 billion.  In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.

To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.            

VICTORIA, Texas – David Ray McGee, 47, of Wallis, has entered a guilty plea to sexual exploitation of a child, otherwise known as production of child pornography, announced U.S. Attorney Kenneth Magidson. Co-defendant Saralyn Ann Proschko, 46, of Victoria, pleaded guilty earlier this year.

In July 2015, authorities with the Victoria Police Department (VPD) responded to the Texas Department of Criminal Justice (TDCJ) - District Parole Office in Victoria in reference to allegations of possession of child pornography. Officers met with Proschko and discovered an electronic video on her cellular telephone of a juvenile female engaged in a sexual act. Further investigation led to the discovery and charging of Proschko’s boyfriend - McGee - in relation to the allegations.

Today, McGee admitted to sexually assaulting the young girl, who was only five years old at the time.

During the hearing, the court heard that McGee had met Proshko on a dating website. During their conversations, he had indicated he had a sexually fantasy. Soon after, Proshko began texting him photos of herself penetrating the young girl with various sexual objects. Eventually, that led to him sexually assaulting the young girl, during which time she had begged him to stop. In at least one instance, Proshko had actually held the toddler down while McGee assaulted her.

Senior U.S. District Judge John D. Rainey accepted the guilty plea and set sentencing for Feb. 2, 2016, at which time McGee faces a minimum of 15 and up to 30 years in federal prison. Upon completion of any prison term imposed, McGee 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.

McGee and Proschko were arrested on the federal charges in July 2015 and have been in custody since that time where both will remain pending their sentencing hearing.

The charges are the result of the investigative efforts of Homeland Security Investigations, Texas Attorney General’s Office - ICAC (Internet Crimes Against Children), Houston-Metro ICAC Task Force and the Victoria Police Department.

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."

McALLEN, Texas – Two men have been ordered to federal prison following their convictions for conspiring to possess with the intent to distribute cocaine, marijuana and conspiring to launder drug proceeds, announced U.S. Attorney Kenneth Magidson. Francisco Javier Gonzalez, 39, of San Juan, and Osmar Alexander Gonzalez, 35, of Houston, entered guilty pleas Jan. 31, 2013, and March 27, 2013, respectively.

Today, U.S. District Judge Randy Crane ordered Francisco Gonzalez to serve 120 months in federal prison, while Osmar Gonzalez received a 144-month term. The prison terms will be immediately followed by a five-year-term of supervised release.

The investigation revealed that during 2010 and 2011, Francisco Gonzalez and others conspired to transport large amounts of marijuana from the Rio Grande Valley to various destinations via tractor-trailers. During the investigation, law enforcement was able to seize several loads of marijuana, including 1,512 kilograms, 980 kilograms and 890 kilograms on May 10, 2010, Oct. 9, 2010, and Jan. 27, 2011, respectively.

The defendants and others also conspired to distribute multi-kilogram quantities of cocaine from the Rio Grande Valley to Houston and elsewhere. Agents seized more than $96,000 on Aug. 25, 2011 - the proceeds of the narcotics distribution.

Both will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

The investigation leading to the charges was conducted by the Drug Enforcement Administration. Assistant U.S. Attorney James Sturgis prosecuted the case.

McALLEN, Texas ‐ A marketer for several area home health agencies has been ordered to federal prison following her conviction of conspiracy to commit health care fraud for her role in a scheme to defraud the Medicare program, announced U.S. Attorney Kenneth Magidson. Martha Lidia Flores, 51, of Pharr, pleaded guilty Aug. 28, 2015, admitting to engaging in a kickback scheme of exchanging referrals of Medicare beneficiaries for money.

Today, U.S. District Judge Randy Crane, who accepted the plea today, handed Flores a sentence of 24 months in federal prison to be immediately followed by three years of supervised release. She was further ordered to pay $267,981.16 in restitution.

From Nov. 15, 2010, to July 9, 2012, Flores issued 11 illegal kickback checks to co-conspirator Argentina Cavazos, 57, of Hidalgo, in exchange for referrals of Medicare beneficiaries. The information was then used by home health care companies to bill Medicare. Cavazos previously pleaded guilty to illegal remunerations for her role in the scheme and was sentenced to six months of home confinement and three years of probation.

Flores admitted to using the patient information she bought from Cavazos to create fraudulent referral forms to submit to the numerous home health companies where she was employed. Claims were subsequently filed with Medicare based on the fraudulent referral forms.  

Flores admitted she forged the signatures of physicians on the referral forms, knowing that the physicians did not authorize the need for home health services and/or that the beneficiaries did not need or qualify for home health services. Flores also admitted that she was illegally compensated for the patient referrals.    

Previously released on bond, Flores 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 investigation leading to the charges was conducted by the U.S. Department of Health and Human Services ‐ Office of Inspector General and the FBI. Assistant U.S. Attorney Michael Day is prosecuting the case.

HOUSTON – A man from the Bronx, New York, has been indicted in Houston on charges of mail and wire fraud, announced U.S. Attorney Kenneth Magidson.

Christopher Donrick Daley, 32, was indicted in the Southern District of Texas on Sept. 22, 2015. He surrendered Oct. 30, 2015, in New York. He is expected to make his appearance in Houston federal court today at 2:00 p.m. before U.S. Magistrate Judge Nancy Johnson. 

The indictment alleges that between June 2010 and November 2011, Daley falsely represented to investors that he operated a commodity pool which invested in oil futures contracts. According to the indictment, the pool would pay investors a return of at least 20% per month and never had a losing month. However, Daley allegedly paid returns to investors with money received from other investors. He used funds received from investors for his own benefit, according to the allegations.

The indictment also contains a notice of forfeiture and seeks forfeiture of $1,569,797, as alleged proceeds of the illegal scheme.

Each count of wire and mail fraud carries a maximum penalty of 20 years imprisonment and a fine of up to $250,000.

The charges are the result of an investigation conducted by the FBI. Assistant U.S. Attorney John Braddock is prosecuting the case.

An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.

BROWNSVILLE, Texas – Delton Hinderliter, 37 of Indianapolis, Indiana, has been sentenced to 112 months in federal prison for his role in a 10-defendant marijuana conspiracy, announced U.S. Attorney Kenneth Magidson. Hinderliter pleaded guilty in May 2014 to conspiracy with intent to distribute a quantity exceeding 1000 kilograms of marijuana.

Hinderliter was  part of a multi-state drug trafficking and money laundering organization that had existed since 2010. The drug trafficking organization, based out of the Rio Grande Valley, would hire out-of-state truck drivers to haul loads of produce with ton quantities of marijuana hidden in false compartments. Drug proceeds would then be transported back to the Rio Grande Valley. The conspiracy extended to Indiana, Kentucky, Illinois, North Carolina and Tennessee.

The evidence at sentencing proved that Hinderliter was a distributer of marijuana for the drug trafficking organization in Indiana.  Hinderliter’s sentence includes upward adjustments or increases in his calculated sentencing guideline range because he was found to have maintained a premises to facilitate the offloading, processing and distribution of illicit narcotics, and because he was found to be a leader within the drug trafficking organization. As part of his sentence, Hinderliter agreed to a $5 million money judgment against him. Five other individuals charged and convicted in the case were previously sentenced to terms ranging from 38-189 months in federal prison. Four others have also been convicted and are pending sentencing.

The case was the result of a nearly three-year Organized Crime Drug Enforcement Task Force investigation lead by the Drug Enforcement Administration with the assistance of Internal Revenue Service-Criminal Investigation; Homeland Security Investigations; Bureau of Alcohol, Tobacco, Firearms and Explosives; FBI; Sheriff’s Offices in Cameron and Zapata Counties; Hildalgo County High Intensity Drug Trafficking Area task force; Border Patrol and the Brownsville Police Department. Assistant U.S. Attorney Angel Castro is prosecuting the case.

BROWNSVILLE, Texas – The final of seven defendants residing in the Brownsville area have been sentenced for their respective roles in an alien smuggling operation operating throughout South Texas, announced U.S. Attorney Kenneth Magidson along with Acting Special Agent in Charge Mark Dawson of Homeland Security Investigations (HSI) - San Antonio. All had pleaded guilty to charges at varying times in 2015.

Ruth Fernanda Morales-Lopez, 33, pleaded guilty to bringing in and harboring aliens and money laundering. Today, U.S. District Judge Hilda Tagle ordered her to serve a total of 34 months in federal prison. Also sentenced today was Esteban Castro-Medina, 41, and Alfredo Prieto-Garcia, 44. Castro-Medina received a sentence of 18 months for bringing in and harboring the aliens, while Prieto-Garcia was sentenced to 47 months for his convictions of conspiracy to bring in and transport aliens as well as conspiracy to commit money laundering.

The remaining defendants - Abram Erasmo Rodriguez, 22, Olegario Reyes-Bonola, 51, Digma Salinas-De Rivera, 42, and Jose Antonio Marin-Sanchez, 44 - were sentenced previously. Rodriguez was convicted of conspiracy to bring into and transport certain aliens within the United States and received 14 months, while Reyes-Bonola, Salinas-De Rivera and Marin-Sanchez were all convicted of bringing in and harboring the aliens. Reyes-Bonola and Salinas-De Rivera each received 12 months and one day in prison, while Marin-Sanchez was sentenced to eight months.

“Today’s sentencing illustrates HSI’s aggressive stance against human smuggling organizations and their illicit laundering of proceeds through U.S. financial institutions,” said Dawson. “HSI investigates complex criminal and money laundering organizations and brings to justice those who elect to circumvent the laws of this nation. HSI will continue to leverage its resources to further identify, disrupt and dismantle these types of transnational criminal organizations.”

All had been implicated in a conspiracy to transport undocumented aliens to stash houses in the Brownsville area, where they were concealed until being transported north to Houston.

Reyes-Bonola, Castro-Medina and Salinas-De Rivera, all illegal aliens who resided in San Benito, were arrested in San Benito at a stash house harboring 30 aliens on Nov. 19, 2014. All admitted they were responsible for concealing and harboring the aliens at the direction of Morales-Lopez.

Rodriguez, of Los Fresnos, had admitted that from November 2013 through August 2014 he participated in the conspiracy. Specifically, he was instructed to pick up the aliens and transport them to the stash house. The plea agreement further indicates that he opened a bank account at the direction of Morales-Lopez. He then accepted cash deposits from families of the smuggled aliens as payment and turned it over to Morales-Lopez.

Further investigation into the organization revealed more than $1 million in smuggling fees being laundered through bank accounts and money services businesses.

Morales-Lopez, of Laguna Vista, admitted she was the person who decided who could stay and who could go at the San Benito stash house based on whether they paid their smuggling fees. She further admitted $1,091,229.90 in her bank account was for alien smuggling fees and that she structured her withdrawals from that account to circumvent the Bank Secrecy Act.

Prieto-Garcia admitted that he operated stash houses in Cameron County and coordinated their movement from Cameron County to Houston. He also admitted to accepting payment for the alien smuggling in an amount of $1,091,229.90. As part of his sentence today, Prieto-Garcia was assessed a money judgment against him for that amount.

HSI led the investigation with assistance from Border Patrol. Assistant U.S. Attorneys Ana Cano and Karen Betancourt are prosecuting the case.

LAREDO, Texas – A federal jury sitting in Laredo convicted two Laredoans guilty of being involved in a conspiracy to possess with intent to distribute in excess of 1,000 kilograms of marijuana, announced U.S. Attorney Kenneth Magidson. The verdicts against Rafael Ortega aka Tio, 57, and Baltazar Ibarra Cardona aka Balta, 55, were returned last night following a three-day trial.

Both were found guilty of the conspiracy. Cardona and Ortega were also convicted of one and four counts, respectively, of possession with intent to distribute marijuana.

During trial, the government presented testimony from 13 witnesses and admitted more than 300 exhibits to prove their guilt in the drug conspiracy which occurred from June 2011 through June 2013. Ortega was a warehouse manager who allowed the Erasmo Trejo Nava drug trafficking organization to use the facility, while Cardona was one of several truck drivers used by the organization to transport marijuana from Laredo to Dallas. 

Ortega was a warehouse manager in Laredo who, unbeknownst to his employer, made the building available for the loading and unloading of marijuana before and after business hours and on weekends. He received $3,000 on each occasion. Ortega allowed members of the drug organization to prepare the drug shipments using the warehouse and warehouse yard. A trailer would bring large wooden crates to the warehouse which were unloaded and readied for marijuana bundles to arrive from stash houses. As many as 138 bundles each weighing 20-40 pounds were unloaded at the warehouse and placed into the crates.

Surveillance showed Ortega meeting the co-conspirators at the warehouse and unlocking the gates to allow them access and entry. Testimony further revealed that Ortega used the warehouse forklift to assist the organization with unloading and loading of the crates into the trailers.

Evidence established that Ortega used his employer’s warehouse unload, load and transport approximately 6,394 kilograms of marijuana. 2,801 kilograms were eventually seized by law enforcement at the checkpoint, while 1,858 kilograms were seized from Cardona as he attempted to transport the drugs to Dallas.

Cardona was a commercial truck driver willing to transport marijuana loads for $15,000. He would pick up trailers loaded with the marijuana left at the warehouse for transportation to Dallas. loads. On a weekend in October 2011, the organization loaded four large crates with marijuana and placed them onto a trailer at the warehouse provided by Ortega. On Oct. 2011, Cardona drove a tractor to the warehouse and picked up the marijuana-loaded trailer to transport to Dallas, taking a longer route via Highway 83 to circumvent the IH-35 checkpoint in the hopes of evading law enforcement. However, he was stopped by a Zavala County deputy between Carrizo Springs and Uvalde with an expired driver’s license as well as expired insurance on the tractor. He also had a false bill of Lading showing that his cargo was destined to a hardware store in Abeline. A search of the tractor trailer revealed he was transporting 1,858 kilograms of marijuana. Evidence established that this had been Cardona’s third trip for the organization.

A total of 18 others previously pleaded guilty. Erasmo Abdon Trejo Nava, 43, Jose Angel Trejo, 42, Ovidio Rodriguez, 41, Victor Hugo Trejo Nava, 41, Francisco Colin, 41, and Salvador Saldaña-Medrano, 36, all of Laredo; Jaime Enrique Montalvo-Ruiz, 44, of Nuevo Laredo, Mexico; and Leocadio Ruiz, 47, of Dallas, entered pleas of guilty to conspiring to possess with intent to distribute more than 1,000 kilograms of marijuana and conspiracy to launder drug proceeds. Five others - Juan Manuel Vargas Aguilar, 45, Mario Albert Rodriguez, 29, and Ricardo Ramirez, 33, all of Laredo; Arturo Lozano, 47, of Dallas; and Joshua Sanchez, 32, of Nuevo Laredo – pleaded guilty to the conspiracy. Gerardo Moreno Recio, 48, of Nuevo Laredo, was convicted of two separate counts of possession with intent to distribute more than 100 kilograms of marijuana, while Laura Heredia Garcia, 50, of Nuevo Laredo; and  Erika Alvarez, 38, Raquel Margarita Ramos Jimenez, 44, and Leslie Bernice Trejo, 22, all of Laredo, entered pleas of guilty to one count of conspiracy to launder drug proceeds.

The case against two others remains pending.

The charges were the result of a long term Organized Crime Drug Enforcement Task Force Investigation dubbed Operation Trena Sin Trono spearheaded by the Drug Enforcement Administration and IRS - Criminal Investigation with the assistance of Homeland Security Investigations, Laredo Police Department, Zavala County Sheriff’s Office. Assistant U.S. Attorney Mary Lou Castillo is prosecuting the case.

BROWNSVILLE, Texas – A 52-year-old man from Guatemala who was residing in Ciudad Hidalgo Chiapas, Mexico, has been ordered to federal prison for his two convictions of possessing with intent to distribute and importing methamphetamine, announced U.S. Attorney Kenneth Magidson. A jury convicted Hector Feliciano Lopez-Monzon following a three-day trial and less than two hours of deliberation on March 13, 2015,

Today, U.S. District Judge Hilda G. Tagle, who presided over the trial, ordered Lopez-Monzon serve a total of 292 months in federal prison. Not a U.S. citizen, he is expected to face deportation proceedings following his release from prison.

The case arose from a seizure at the international bridge in Los Indios on Dec. 26, 2014. On that date, a tractor trailer pulling an empty car hauler was found to have 378.5 kilograms of liquid methamphetamine in one of the diesel tanks. Testimony at trial revealed that a “cruzador” (crosser) had been hired at the Mexican border to cross the car hauler into the United States for delivery to a transmigrant forwarding company. 

Transmigrants from Central America travel to the U.S. to buy vehicles, tractors and other items to export to their country for resale. The cruzador and another witness testified that cruzadors are routinely hired by transmigrants from Central America to drive the vehicles from the Mexican border to an importation/forwarding company in Los Indios.

Lopez-Monzon crossed into the United States the day after the tractor trailer seizure. He identified himself as the owner of the conveyance saying he had traveled in it with a companion from Guatemala through Mexico and then hired a cruzador to cross it into the U.S. He denied knowledge of the drugs. However, testimony at trial revealed he had false documentation regarding the tractor and car hauler. In addition, he gave an inconsistent version of how the traveled from Guatemala through Mexico.

The jury ultimately convicted him on the two charges.

Lopez-Monzon will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

This charges were the result of an investigation conducted by Homeland Security Investigations with the assistance of Customs and Border Protection. Assistant U.S. Attorneys Oscar Ponce and David Coronado are prosecuted the case.

HOUSTON – The eight defendants charged in this district in a scheme in which fraudulent tax returns were filed using identification information that was stolen and used without lawful authority have all been ordered to prison, announced U.S. Attorney Kenneth Magidson along with Postal Inspector in Charge Adrian Gonzalez of the U.S. Postal Inspection Service (USPIS) and Special Agent in Charge Rick Goss of IRS-Criminal Investigation (CI).

Travis White, 32, and Jalan Willingham, 35, both of Atlanta, Georgia, were the ring leaders in the conspiracy and both pleaded guilty to conspiracy to commit mail fraud, one count of wire fraud and aggravated identity theft. Shawn Phillip Thornton, 37, also of Atlanta, pleaded guilty to the conspiracy as did postal carriers Edward Dwayne Vallier, 42, of Houston, and Tangela R. Jackson-Lezeau, 36, of Port Saint Lucie, Florida. Another letter carrier - Calvin Shelton, 39, also of Atlanta - entered a guilty plea to the conspiracy as well as mail fraud, seven counts of wire fraud and two counts of aggravated identity theft. Two others - Kerry Lionel Ruffin, 32 and Rance Hunter, 31, both of Atlanta, pleaded guilty to the conspiracy and aggravated identity theft.

U.S. District Judge Keith P. Ellison accepted all the guilty pleas and imposed the sentences today. White and Willingham were ordered to serve 200 and 108 months, respectively, for the conspiracy and wire fraud charges as well as a consecutive 24-month-term of imprisonment on the identity theft which must be served consecutively to the other sentences imposed. Following the total  224 and 132-month-terms, White and Willingham will also serve three years of supervised release.

Shelton was ordered to serve 33 months in prison for the conspiracy and mail fraud charges in addition to a 24-month-term of imprisonment for the identity theft for a total of 57 months in federal prison. Vallier, Thornton and Jackson-Lezeau received respective sentences of 27, 45 and 46 months in prison. Ruffin and Hunter will serve 26 and 60 months, respectively, for the conspiracy convictions which will be served consecutively to another 24 months for the identity theft, resulting in sentences of 50 and 84 months in federal prison. They must all also serve three years of supervised release following their releases from prison.

The court ordered restitution in the total amount of $7,845,652, with the defendants paying varying amounts in accordance with their roles in the scheme.

At the hearing, a victim testified about the effect the defendants’ stealing her identity has had on her life. It resulted in her having tremendously bad credit which led to her having depression among other things.

The case against a ninth defendant - Dwayne Biggs - was transferred to the Northern District of Georgia. He also pleaded guilty and is awaiting sentencing.

“USPIS has sought for hundreds of years those who use the Postal Service for illegal gain,” said Gonzalez. “This investigation was an excellent example of a partnership between federal law enforcement agencies working together to bring down this fraud conspiracy. I fully commend the hard work and countless hours put forth which resulted in bringing these individuals to justice.”

“Today’s sentencing should send a clear message that the U.S. government will not tolerate the systematic victimization of our citizens by identity thieves,” said Goss. “IRS-CI and our law enforcement partners are dedicated to fighting identity theft and the chaos it causes in the lives of the victims.”

From 2010 through 2013, the co-conspirators used the stolen personal identifying information to file thousands of fraudulent tax returns claiming more than $12 million in refunds. According to IRS records, the National Treasury paid out more than more than  $7 million before the scheme was discovered.

White played a key role in recruiting and organizing and was considered the number one leader in this conspiracy. Not only did he recruit Shelton and Thornton, but he also gave instructions to co-conspirators on what to do in this scheme, acquired stolen information and filed the false tax returns. Additionally, once he recruited letter carriers, he instructed them to mail refund cards to him or Willingham. He also  moved the scheme to Houston when he realized law enforcement was on their trail.

Willingham is considered to be the second in command. He entered into the conspiracy in 2010 when he was approached by White while in Georgia and continued with the scheme until their relocation to Houston in 2012. Not only did Willingham assist in the filing of the false tax returns, he recruited letter carriers and received the packages from Shelton as well. Willingham was also responsible for recruiting Vallier to participate in in this scheme and provided instructions to Shelton regularly.

While White and Willingham were the main leaders in this organization that committed tax fraud and identify theft on an unprecedented scale, in order for the conspiracy to function as efficiently as it did, they had to recruit trusted agents to assist them. Hunter had access to the Fulton County, Georgia, Sheriff’s Office database including names, birth dates and Social Security numbers of arrestees, inmate and employees. He sold that personally-identifiable information (PII) to Biggs who then provided it to Ruffin. Ruffin acted as a conduit, funneling the stolen PII to the co-conspirators in Houston. From 2010 through 2013, White and Willingham used the stolen PII to file thousands of fraudulent tax returns claiming more than $12 million in refunds. The tax refunds generated by the fraudulent returns were often deposited onto reloadable debit cards and mailed to addresses under control of the conspirators. Vallier, Jackson-Lezeau and Shelton allowed fraudulent refunds to be mailed to addresses on their routes. After gathering the mail containing the refund debit cards, they sent them to their co-conspirators in Houston.

Shelton, White, Willingham and Thornton are in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future, while Jackson, Vallier, Ruffin and Hunter were permitted to remain on bond and voluntarily surrender at a later date.

The charges were the result of a joint investigation conducted by USPIS and IRS-CI. Assistant U.S. Attorney Suzanne Elmilady is prosecuting the case.

HOUSTON – A 44-year-old Kansas man has been ordered to federal prison for transporting a minor across state lines with the intent to engage in criminal sexual activity, announced U.S. Attorney Kenneth Magidson. Paul Francis Grimm, of Goddard, Kansas, pleaded guilty Nov. 4, 2014.

Today, U.S. District Judge George C. Hanks Jr. ordered Grimm serve a total of 183 months in federal prison. The sentence will be immediately followed by 10 years of supervised release during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. In handing down the sentence, Judge Hanks stated that the crime Grimm committed was cold, calculated and meticulously planned. He added that Grimm’s acts were selfish and not acceptable in society.

Grimm had been engaging in an online relationship with a 15-year-old female. He later made arrangements for the child to travel from Ohio to Houston where Grimm picked her up at the airport. He then transported her to Galveston where they boarded a cruise ship and spent several days cruising through the Caribbean.

Upon arrival back in Galveston, a Customs and Border Protection (CBP) officer noticed Grimm and the minor female did not have the same last name nor were they related. The subsequent FBI investigation revealed Grimm and the victim had been communicating online and via cell phone for quite some time. Grimm had even paid for the child’s phone.

Using a ruse, Grimm communicated to the minor’s mother that he wanted the victim to join him and his son, a supposed friend of the victim, on a cruise.  He had proved the mother with his military identification and gave other assurances to her, at which time she allowed her daughter to travel to Houston to meet Grimm for the cruise.

Grimm and the victim travelled as a couple, shared a room and posed for photographs together on the cruise. Evidence of a sexual relationship between Grimm and the victim were found on computer devices.  

Grimm was arrested on March 29, 2014. Following a detention hearing, the court heard the government’s evidence and ordered him into custody. While detained, Grimm allegedly called his ex-wife in an attempt to have one of his children destroy evidence in his home in Kansas. Authorities executed a search warrant at the residence and, as a result, a grand jury sitting in the Wichita Division of Kansas has returned an indictment on seven counts of production of child pornography. Those charges are still pending and he is considered innocent in that case unless and until proven guilty through due process of law.

The charges were the result of an investigation conducted by FBI with the assistance of CBP.

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."

HOUSTON – A federal jury sitting in Houston has returned guilty verdicts today against Dr. Enyibuaku Rita Uzoaga, 43, on six counts of health care fraud and one count of conspiracy to commit health care fraud, announced U.S. Attorney Kenneth Magidson. The jury deliberated for approximately four hours following a six-day trial.

Co-defendant Charles Harris, 55, pleaded guilty prior to trial.

At trial, the jury heard that from approximately 2006 through 2010, Uzoaga, Harris and others falsely billed Medicare and Medicaid for numerous, unnecessary vestibular diagnostic tests. Some patients were billed for hundreds of tests, some for more than a 1,000. The evidence at trial showed that the testing by Harris and his employees was either not performed, not medically necessary and/or not performed by licensed individuals.

Vestibular diagnostic testing is used to diagnose a person for vertigo or dizziness. After being diagnosed, patients usually undergo physical therapy, take medication or undergo surgery as treatment.

As a result of this unlawful scheme, Medicare and Medicaid were billed approximately $653,970 in submitted, fraudulent vestibular diagnostic claims. Medicare and Medicaid paid $389,285 on those claims.

Vestibular testing accounted for 23 percent of Uzoaga’s income from Medicare and Medicaid.

At trial, Uzoaga attempted to convince the jury that she was unaware of the false billings. The jury did not believe her story and found Uzoaga guilty as charged.

U.S. District Judge Ewing Werlein Jr.  presided over the trial and has et sentencing for Feb. 29, 2015. At that time, Uzoaga faces up to 10 years in federal prison on each of the charges as well as a possible $250,000 fine.

Uzoaga was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.

The charges are the result of the investigative efforts of the Texas Attorney General’s Medicaid Fraud Control Unit, Department of Health and Human Services - Office of Inspector General, Office of Investigations and the FBI. Special Assistant U.S. Attorney Suzanne Bradley and Assistant U.S. Attorney Tina Ansari prosecuted the case.

VICTORIA, Texas – A 25-year-old Hallettsville man has been ordered to federal prison following his conviction of possession of child pornography, announced U.S. Attorney Kenneth Magidson. Manuel Averill Amaro pleaded guilty July 7, 2015.

Today, Senior U.S. District Judge John D. Rainey sentenced Amaro to 96 months in prison to be immediately followed by a 10-year-term of supervised release during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. He will also be ordered to register as a sex offender.

On March 30, 2015, authorities began investigating Amaro for allegations involving the sexual exploitation of a child. During the course of the investigation, authorities conducted a search and seized Amaro’s two phones. A forensic examination of the phones led to the discovery of more than 600 images of children involved in sexual explicit conduct.

Amaro admitted to possessing the images. He also admitted to looking at child pornography since he was 14 years of age.

He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

The charges against Amaro was the result of an investigation conducted by Homeland Security Investigations and the Hallettsville Police Cyber Crimes Unit.

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."

McALLEN, Texas – Alexis Acosta-Guzman, 40, a Cuban citizen who was residing in McAllen, has been convicted of trafficking in access devices, announced U.S. Attorney Kenneth Magidson.

From March 2013 through August 2015, Acosta-Guzman wired thousands of dollars in funds to individuals in China, Russia and the Ukraine. In return, he received more than 1,000 credit card numbers and other personal information that had been stolen from individuals in the United States. Acosta-Guzman transferred that information to others using various email accounts.

He and co-conspirators would then use special devices and the stolen information to create physical credit cards. They used the fraudulent credit cards to make purchases throughout Texas at different retailers and convenience stores.

As a result of the scheme, hundreds of people lost more than $211,000 for the fraudulent charges. Ultimately, the customers’ bank absorbed the losses. As part of his plea, Acosta-Guzman has agreed to pay restitution in the amount of $211,311.15.

U.S. District Judge Micaela Alvarez accepted the plea and set sentencing for Jan. 14, 2016. At that time, Acosta-Guzman faces up to 10 years in federal prison.

The charges are the result of an investigation conducted by the Secret Service, FBI and the McAllen Police Department. Assistant U.S. Attorneys David A. Lindenmuth and Joseph T. Leonard prosecuted the case.

CORPUS CHRISTI, Texas – James Peyton Busbee Jr., 30, of Victoria, has entered a guilty plea to sexual exploitation of a child, otherwise known as production of child pornography, announced U.S. Attorney Kenneth Magidson.

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.

Senior U.S. District Judge John D. Rainey accepted the guilty plea today and set sentencing for Feb. 1, 2016. At that time, Busbee faces a minimum of 15 and up to 30 years in federal prison. Upon completion of any prison term imposed, Busbee 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.

Busbee was arrested on the federal charges in April 2015 and has been in custody since that time where he will remain pending his sentencing hearing.

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."

HOUSTON – Three more Houston residents, including a man who was practicing medicine without a license, have been arrested on wide-ranging charges involving a $12 million conspiracy to commit health care fraud and to pay kickbacks to patients, announced U.S. Attorney Kenneth Magidson.

Bompa Mbokosa Mompiere, 56, Ann Marie Rocha, 48, and Eddie Wayne Taylor, 56, are charged in a 30-count superseding indictment with conspiracy to commit health care fraud. Taylor is additionally charged with health care fraud. They were all taken into custody today. They all appeared this morning before U.S. Magistrate Judge Mary Milloy. Mompiere and Taylor will be in court again today at 2:00 p.m. to complete the initial proceedings.  

The original 25-count indictment charged Mktrich “Mike” Yepremian, 58, Dr. Harding Ross, 61, Dr. Faiz Ahmed, 63, Jermaine Doleman, 38, Michael Wayne Wilson, 46, and Eric Johnson, 61. They were arrested in July 2015 in conjunction with a search warrant executed at a downtown office building where several clinics and a blood testing laboratory were located. With the exception of Doleman who is in custody on unrelated health care fraud charges, all were released upon posting bond.

Yepremian was the owner and operator of the clinics and lab. The indictment alleges Yepremian paid Doleman, Wilson, Johnson and Taylor to bring Medicare and Medicaid patients to his clinics so they could be billed for multiple, medically unnecessary diagnostic tests and for unnecessary blood tests. In turn, the patients were allegedly paid by Yepremian, Doleman, Wilson, Johnson and Taylor to attend the clinics.

The indictment alleges this scheme began in 2006 and involved clinics that were held in the names of “straw owners,” although Yepremian controlled all funds from the false billing. The clinics were named Crawford Medical Services, Mid City Healthcare, Care Family Practice, Arca Medical Clinic, while the lab was named Empire Clinical Laboratory.

Yepremian is additionally charged with two additional money laundering counts for allegedly funneling money to relatives. The superseding indictment seeks to forfeit a Houston home purchased in the name of one of Yepremian’s relatives.

The statutory maximum penalty for conspiracy, money laundering or health care fraud is up to 10 years in prison as well as a maximum $250,000 fine, while a conviction for a violation of the anti-kickback statute could result in a five-year maximum term of imprisonment.

The charges are the result of the investigative efforts of the Texas Attorney General’s Medicaid Fraud Control Unit, FBI and the Department of Health and Human Services - Office of Inspector General, Office of Investigations. Special Assistant United States Attorney Suzanne Bradley and Assistant United States Attorney Tina Ansari 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.

McALLEN, Texas – A 43-year-old Mexican national has entered a guilty plea to importing 75 kilograms of methamphetamine into the country hidden within a load of squash and cactus, announced U.S. Attorney Kenneth Magidson.

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.

U.S. District Judge Randy Crane, accepted the plea and has sentencing for Jan. 14, 2016. At that time, Gomez-Reyes faces up to life in federal prison. He will remain in custody pending that hearing.

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.

HOUSTON - A Houston businessman has entered a guilty plea to engaging in a conspiracy to defraud Medicare of more than $6.6 million, announced U.S. Attorney Kenneth Magidson.

At a hearing held today before U.S. District Kenneth Ellison, Robert Manning, 60, admitted he participated in a three-year conspiracy to defraud Medicare by paying kickbacks to Medicare beneficiaries whose Medicare information was then used to file fraudulent claims with Medicare.

During his plea, Manning admitted that beginning in 2008 he was introduced to a Houston medical clinic manager who agreed to pay Manning per head for Medicare beneficiaries brought to the clinic. Manning, in turn, would pay the marketers who brought the beneficiaries, keeping a small portion as his fee. Manning admitted he was paid $125 per Medicare beneficiary allegedly treated at the clinic which was paid on a weekly basis. Manning paid the marketers $100 in cash per beneficiary and kept the remaining $25. On some occasions, Manning would deal directly with a Medicare beneficiary. In those instances, he would pay the beneficiary $100 in cash and again keep the remaining $25. Manning admitted he knew the Medicare billing was fraudulent because he knew that the reason “patients” were going to the clinic was because they were being paid to do so, and not because they needed a specific medical treatment.

According to the factual basis in support of the plea, the clinic billed Medicare $6.6 million for the diagnostic testing allegedly done and was paid $2.9 million.

Judge Ellison has set sentencing for Feb. 16, 2016, at which time Manning faces up to 15 years in federal prison and a possible $500,000 fine. As part of his plea, Manning has also agreed to pay restitution of $2.9 million to Medicare. He was permitted to remain on bond pending that hearing.

The criminal charges are the result of a joint investigation by the Texas Attorney General’s Office - Medicaid Fraud Control Unit, IRS - Criminal Investigation, U.S. Department of Health and Human Services - Office of Inspector General and the FBI. Assistant United States Attorneys Al Balboni and Adrienne Frazior are prosecuting the case.

BROWNSVILLE, Texas – A 37-year-old U.S. citizen from San Benito has been handed a significant sentence following his convictions stemming from a multi-count indictment related to a conspiracy to possess with Intent to distribute marijuana, announced U.S. Attorney Kenneth Magidson along with Acting Special Agent in Charge Mark Dawson of Homeland Security Investigations (HSI) - San Antonio. Hervey Roel pleaded guilty in August 2014.

Today, U.S. District Judge Andrew S. Hanen ordered he serve a sentence of 300 months in federal prison to be immediately followed by five years of supervised release. The sentence reflected an enhancement as the court found he was a leader/organizer in the conspiracy, he maintained certain premises for distributing controlled substances, possessed firearms during the drug conspiracy and committed the offense as part of a pattern of criminal conduct engaged in as a livelihood.  The court further ordered a money judgment in the amount of $9 million and forfeited any interest Roel may have in a ranch in Olmito and a residence in Brownsville.

The charges arose from the apprehension of Roel and others at different locations in San Benito and Olmito after agents seized 1,785.5 kilograms of marijuana in a tractor-trailer.

“The court's sentence appropriately punished Roel for his being the head of large scale narcotics organization in south Texas, that negatively impacted the Rio Grande Valley,” said Dawson. “HSI will continue to utilize its broad authorities to dismantle criminal organizations who blatantly ignore the laws of this nation.”

Evidence presented at the plea hearing and sentencing proved that on June 8, 2013, HSI agents conducted surveillance at a warehouse located in Brownsville, where a tractor-trailer was then driven to a gas station in Olmito. There, the driver - Manuel Torres-Hernandez, 32, met with Lauro De La Fuente Jr., 25, and Ricardo Ochoa, 33. Agents observed Roel arrive separately and also meet with De La Fuente and Ochoa. Roel left and was followed to a ranch nearby. Torres-Hernandez left the gas station driving on Highway 77 and was stopped in San Benito where the mariJuana was discovered. De La Fuente and Ochoa were apprehended along with Victor Silva, 34, and Martin Enrique Rodriguez 25, when they drove to the scene. The individuals appeared to be conducting counter-surveillance looking for law enforcement and agents found a drug ledger within their vehicle.

Further investigation by HSI agents revealed Roel to be the coordinator of numerous drug loads to Houston and other areas north since 2011. Roel would hire individuals to package and rewrap marijuana for transport.

Ochoa was previously sentenced to a term of 125 months in prison, while De La Fuente was ordered to serve a 101-month term of imprisonment. Torres-Hernandez, Silva and Rodriguez received respective sentences of 47, 58 and 57 months in prison. All had also pleaded guilty and resided in Brownsville.

Roel 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 HSI. Assistant U.S. Attorney Oscar Ponce is prosecuting the case.

LAREDO, Texas – A 35-year-old former sergeant with the National Guard who was stationed in Weslaco has been ordered to federal prison following his conviction of attempted enticement of a minor, announced U.S. Attorney Kenneth Magidson. A federal jury convicted Curtis Billups, of San Antonio, on July 17, 2015, following a three-day trial.

Today, U.S. District Judge Marina Garcia Marmolejo, who presided over the trial, ordered Billups serve 151 months in federal prison. The sentence will be immediately followed by 10 years of supervised release, during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. He will also be ordered to register as a sex offender. In handing down the sentence, Judge Marmolejo commented on the danger Billups poses because he acts on his thoughts.

Billups was working the area as part an enhanced border presence. In late March 2015, Billups made contact via the Internet with a person he believed to be a father offering his 12 and 14-year-old daughters for sex. In reality, the individual was actually an undercover agent with Homeland Security Investigations (HSI). Following approximately a week of correspondence, Billups traveled from Weslaco to Laredo to meet with the undercover agent, believing he would be taken to the girls to have sex with them. Instead, he was arrested and taken into custody.   

During trial, the government presented the emails and text messages involving Billups, many of which were sexually explicit in nature. The evidence showed he intended to travel to Laredo to have sex with the two fictitious children.

Billups attempted to convince the jury that he believed the communications were part of a role playing game and that no children were actually involved. The jury was not convinced and convicted him as charged.

Billups will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

The investigation leading to the charges was conducted by HSI. Assistant U.S. Attorney Alfredo De La Rosa and Jorge Vela prosecuted the case.

CORPUS CHRISTI, Texas - A ship management company has pleaded guilty and was sentenced today for deliberately concealing pollution discharges from the ship directly into the sea and for falsifying its oil record book, announced U.S. Attorney Kenneth Magidson along with Rear Admiral David R. Callahan, Eighth District Coast Guard Commander. Chandris (Hellas) Inc. is headquartered in Greece and operated the M/V Sestrea - an 81,502 ton cargo ship that made calls in multiple ports in Texas.

Chandris pleaded guilty to a violation of the Act to Prevent Pollution from Ships for failing to properly maintain an oil record book as required by federal and international law, as well as a violation of making a false statement for making a false entry in the ship’s oil record book.

Shortly following the plea, U.S. District Judge Judge Nelva Gonzales Ramos ordered the company to pay an $800,000 criminal fine along with a $200,000 community service payment to the congressionally-established National Marine Sanctuary Foundation. The money will be designated for use in the Flower Garden and Stetson Banks National Marine Sanctuary, headquartered in Galveston, to support the protection and preservation of natural and cultural resources located in and adjacent to the sanctuary.

Chandris was also sentenced to three years probation. As a condition of the probation, all ships Chandris manages and are involved in transporting crude oil will be forced to comply with an Environmental Compliance Plan.

“Environmental crimes continue to occur throughout the Eighth Coast Guard District,” said Callahan. “When companies knowingly fail to adhere to marine anti-pollution laws, it affects each and every one of us. The Coast Guard will not tolerate the pollution of our marine environment and endangering of the public health. I am grateful for the hard work, dedication and professionalism exhibited by Coast Guard Sector Corpus Christi, the Coast Guard Investigative Service and the U.S. Attorney's Office for the Southern District of Texas.”

According to the joint factual statement, on or about Dec. 18, 2014, the chief engineering officer on board the M/V Sestrea acting on behalf of Chandris used a hose to pump fresh water through the Oil Content Meter. Because of this, the meter was “tricked” into sensing that all of the oily bilge water being run through the Oil Water Separator within normal limits. As a result, the system discharged oily water in excess of 15 parts per million overboard into the sea.

Federal and international law requires that all ships comply with pollution regulations that include the proper disposal of oily water and sludge by passing the oily water through a separator aboard the vessel or burning the sludge in the ship’s incinerator. Federal law also requires ships to accurately record each disposal of oily water or sludge in an oil record book and to have the record book available for the U.S. Coast Guard when the vessel is within the waters of the United States. The M/V Sestrea called on the Port in Corpus Christi on Jan. 3, 2015.

According to court documents, the chief engineer knowingly failed to make the required entries into the oil record book including the fact that oily waste had been discharged directly into the sea. The chief engineer also made false entries in the oil record book to conceal the fact that the pollution control equipment had not been used. The crewmembers then attempted to conceal the discharge on Dec. 18, 2014, during a Coast Guard boarding at the port in Corpus Christi by providing the falsified oil record book to the boarding crew.

The investigation was conducted by the Coast Guard - Corpus Christi Sector and the Coast Guard Investigative Service in Corpus Christi. Assistant U.S. Attorney Jeffrey S. Miller is prosecuting the case.

HOUSTON – A criminal defense attorney in Houston has been ordered to prison for 15 years following his convictions on 18 counts to include conspiracy, obstruction of justice, money laundering, conspiracy to commit money laundering and failure to file tax returns, announced United States Attorney Kenneth Magidson. Abraham Moses Fisch, 56, was convicted by a jury May 27, 2015, following a 15-day trial and approximately 14 hours of deliberations.

Today, U.S. District Judge Lee H. Rosenthal, who presided over the trial, handed Fisch a total sentence of 180 months in federal prison. He must also forfeit $1.15 million and serve five years of supervised release following completion of the prison term. Also sentenced today was Lloyd Glen Williams, 71, a former used car financier in Houston who previously entered a plea of guilty to conspiring to obstruct justice and to filing a false tax return. He will serve 84 months in federal prison to be followed by two years of supervised release. He will also forfeit $1.48 million.

At the hearing, a victim made a statement to the court. She is the mother of a defendant prosecuted in a drug case who was represented by Fisch. She testified that Fisch and Williams promised her and her son that they could get him probation by influencing Williams’ supposed contacts in Washington. The mother had used her retirement savings to hire Fisch and Williams based on this promise and paid them $80,000. She told the court that everything Fisch and Williams told her turned out to be a lie. She said that, as a result, she has lost faith in the justice system and does not know who to believe in the system anymore.

“Schemes to obstruct justice, such as the one concocted by these defendants, affect the hard work we try to do every day and the public’s perception of those efforts,” said Magidson. “These significant sentences should serve as a verdict for restoring faith in our federal justice system.”

The evidence at trial showed that Fisch and Williams conspired to defraud defendants who were facing federal criminal charges in Houston. The fraud was perpetrated in at least four different federal criminal cases pending in Houston, including U.S. v. Edilberto Portillo et al. (H-06-182), U.S. v. Hugo Barrera Cavazos et al. (H-06-422), U.S. v. Umawa Oke Imo et al. (H-09-426) and U.S. v. Clifford Ubani and Princewill Njoku et al. (H-09-421 and H-10-416).

The defendants in the four cases as well as their wives and associates testified that Williams and Fisch told them that in return for paying exorbitant fees, Williams would pay off his alleged government contacts in Washington D.C. in order to obtain a “guaranteed” dismissal of the criminal cases. Those individuals were supposedly officials at the Central Intelligence Agency, FBI, Department of Justice and Medicare.

Drug trafficker Edilberto Portillo and his wife, Elida Sanchez, paid $1.1 million to Fisch in order to obtain the dismissal of their charges. Fisch paid $700,000 of the Portillo/Sanchez fee to Williams. Umawa Oke Imo, a defendant in a large health care fraud case, testified that Fisch and Williams quoted him a fee of $3 million in order to obtain a dismissal. In reality, however, no officials were paid, no cases were dismissed, and Fisch and Williams simply split the fees between them. 

The evidence showed that the scam undermined the functioning of the federal justice system by misleading defendants about the nature of the cooperation process with the government and interfering with defendants’ cooperation with the government, including failing to pass information from a defendant to the government. It also interfered with plea negotiations with the government by preventing defendants from timely entering guilty pleas because of the mistaken belief their case was going to be dismissed.

The scam also interfered with defendants’ relationships with former and subsequent counsel, including communicating with represented defendants unbeknownst to their legitimate counsel, causing them to fire counsel, not to communicate fully and truthfully with their attorneys and not to assist their attorneys in preparing their defense or in negotiating guilty pleas.

Fisch and Williams also insisted that defendants keep the nature of Williams’ so-called “assistance” secret from the court, the government and other attorneys.       

Fisch was convicted of money laundering based on the deposit of the funds earned from the scheme, which totaled at least $1,150,000. The United States is seeking forfeiture of that amount as money derived from the criminal activity.

Previously released on bond, both Fisch and Williams were taken into custody following the sentencing today where they will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

The investigation that led to this indictment and the arrests and plea was conducted by the FBI and Internal Revenue Service – Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorneys Robert S. Johnson and John P. Pearson.

LAREDO, Texas – A local woman has been ordered to prison for nearly 20 years following her conviction of trafficking liquid methamphetamine, announced U.S. Attorney Kenneth Magidson. A federal jury convicted Brenda Rodriguez-Garcia, 23, of Laredo, following a two-day trial on June 30, 2015,

Today, U.S. District Judge Diana Saldaña, who presided over the trial, ordered Rodriguez-Garcia to serve a total of 235 months in federal prison to be immediately followed by five years of supervised release. Also sentenced today was Luis Hernandez-Cabello, 30, of Nuevo Laredo, Mexico, who pleaded guilty June 9, 2015. He will serve 37 months in prison. He is expected to face deportation proceedings following his release.

At trial, Border Patrol (BP) and the Drug Enforcement Administration (DEA) agents described their Feb. 9, 2015, discovery of methamphetamine concealed in the running boards of the couple’s Chevrolet Suburban. Testimony revealed that Rodriguez and Hernandez had passed through the same checkpoint in a different vehicle three days earlier. Although the couple was allowed to proceed with their travel on that date, an agent later found crystals on his uniform and tools that tested positive as methamphetamine. Rodriguez and Hernandez were recognized when they attempted to pass through the same check point on the later date. The jury also heard from DEA drug chemists and drug value experts who testified that the confiscated drug was methamphetamine and had a value between approximately $340,000 and $400,000.

At the hearing today, Rodriguez-Garcia asked the court for a minimal sentence, but the judge refused. The court noted that she believed Rodriguez-Garcia was the most culpable - driving the vehicles each time, organizing the trips, securing the vehicles and giving inconsistent statements. The Judge pointed out the jury’s finding of guilty, the significant quantities of methamphetamine involved and Rodriguez-Garcia’s refusal to accept responsibility for her actions.

Both defendants will remain in custody pending transfer to U.S. Bureau Prisons facilities to be determined in the near future.

The charges were the result of an investigation conducted by BP and DEA. Assistant U.S. Attorneys Christopher dos Santos, Mike Eaton and Homero Ramirez prosecuted the case.

HOUSTON – Jermaine Comeaux, 35, has been ordered to federal prison following his convictions of one count of conspiracy to commit wire fraud and one count of aggravated identity theft, announced U.S. Attorney Kenneth Magidson. Comeaux, of Houston, pleaded guilty March 16, 2015.

Today, U.S. District Judge Lynn Hughes ordered Comeaux to serve 240 months in federal prison for the conspiracy as well as a consecutive 24 months for the aggravated identity theft. The total 264-month-sentence will be immediately followed by five years of supervised release. He was further ordered to pay more than $1 million in restitution.

Between Jan. 1, 2013, and Nov. 30, 2013, Comeaux engaged in a wire fraud conspiracy to unlawfully obtain cash and defraud Compass Bank, a Federal Deposit Insurance Corporation - insured institution. Comeaux and others unlawfully obtained, shared and busted out multiple credit cards for cash and shared the proceeds with each other.

Comeaux owned and operated Swagg Clothing and Comeaux Graphixx and Print’n, two businesses used in the conspiracy. He applied for and obtained PayPal and Square accounts for these businesses in order to run fraudulent cards. Comeaux would swipe, and authorize his co-conspirators to swipe, fraudulently obtained credit cards through his business terminal using credit card processors PayPal had provided. Comeaux would also swipe fraudulently obtained cards through businesses under the control of his co-conspirators, including Majix Studio and Pop Goffney. After the cards were used, the funds were deposited into bank accounts or onto debit cards under the care, custody and control of Comeaux and his co-conspirators.

Comeaux admitted to processing multiple illegitimate transactions through his business during the course of the conspiracy.

Comeaux knew the credit cards were fraudulent because they had been applied for and obtained through the use of stolen identities. There were at least 70 victims whose identities had been stolen, all senior citizens between the ages of 70 and 95, living throughout the country. 

Comeaux also knew the transactions going through his processors were illegitimate as there was no exchange of goods for services. Typically, the conspirators ran the fraudulently obtained credit cards for $1,000 to $5,000 until they reached their limits. When necessary, Comeaux and his co-conspirators would fabricate and submit false information, receipts, invoices and other documentation to PayPal regarding the fraudulent transactions to further facilitate the fraud.

In total, Comeaux and his co-conspirators stole approximately $1.1 during the conspiracy.

Comeaux was ordered into custody following the hearing today. 

The charges are the result of an investigation conducted by the U.S. Secret Service and U.S. Postal Inspection Service. Assistant U.S. Attorney Julie Searle is prosecuting the case.