Southern District of Texas
Press releases recorded for this federal judicial district.
Houston Man Convicted of Embezzling from Labor UnionRead the Press Release
HOUSTON – Henry Shuler, 65, of Houston, has admitted to stealing from United Transportation Union (UTU), Local 1982, announced U.S. Attorney Kenneth Magidson. Shuler was the secretary/treasurer of UTU.
Agents received information from an internal UTU International auditor that Shuler embezzled union funds by writing checks to Sam’s Club for personal items not authorized by the union. Further investigation by Department of Labor (DOL) investigators revealed Shuler also disguised some of the stolen funds as repayment of union dues to nonexistent members.
The total amount of union funds stolen is approximately $40,000 over the course of six years.
He is set for sentencing July 17, 2015, at which time he faces up to five years imprisonment and a possible $10,000 maximum fine.
The case was investigated by DOL-Office of Labor Management Standards. Assistant U.S. Attorney Glenn Cook is prosecuting the case.
Guatemalan Woman Extradited to the United States to Face Human Smuggling ChargesRead the Press Release
McALLEN, Texas - A Guatemalan national appeared in federal court in McAllen after being extradited to the United States from Guatemala to face criminal charges for her role in smuggling undocumented migrants to the United States for profit, announced U.S. Attorney Kenneth Magidson along with Assistant Attorney General Leslie Caldwell the Justice Department’s Criminal Division and Director Sarah R. Saldaña of U.S. Immigration and Customs Enforcement (ICE).
Rosa Umanzor-Lopez, 35, of Guatemala, was arrested in Guatemala on Feb. 5, 2014, on a provisional arrest warrant based on a superseding indictment filed in the Southern District of Texas in December 2012. The indictment charges her with one count of conspiracy to smuggle undocumented immigrants into the United States, three counts of bringing aliens to the United States for financial gain and three corresponding counts of encouraging and inducing an alien to come to the United States. Three individuals also charged in the indictment have previously been convicted and sentenced.
The indictment alleges that Umanzor-Lopez and her co-defendants established a network to recruit individuals from India and elsewhere who wished to be smuggled into the United States. The defendants then allegedly arranged for aliens to be transported to the United States through South America and Central America by various means including by air travel, automobiles, water craft and foot.
The investigation was conducted by agents with ICE Homeland Security Investigations (HSI) in McAllen and Houston with the assistance of U.S. Customs and Border Protection’s Alien Smuggling Interdiction Unit. This case is being prosecuted by Assistant U.S. Attorneys Leo J. Leo III and Casey MacDonald and Trial Attorney Christina Giffin of the Criminal Division’s Human Rights and Special Prosecutions Section. The Criminal Division’s Office of International Affairs assisted with the 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.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Federal Jury Convicts Sex Trafficking Ring LeaderRead the Press Release
HOUSTON – Hortencia Medeles-Arguello aka Raquel Medeles Garcia, Raquel Medeles Garcia or “Tencha,” 71, has been found guilty on all counts for her leadership role in a 16-defendant sex trafficking conspiracy, announced U.S. Attorney Kenneth Magidson. The verdict was returned today following a 10-day trial and approximately four hours of deliberations.
She is the 14th defendant to have been convicted. 13 others have pleaded guilty, while two remain at large.
This is believed to be the first sex trafficking case of this magnitude tried in the United States involving both minors and women who were forced to engage in prostitution against their will. 12 rescued victims testified at trial regarding the horrors of their ordeal beginning with being recruited in their home country and ending with their rescue here in the United States. Some girls were recruited as young as 14 years of age.
Testimony revealed that pimps recruited the young girls by convincing them they were in love, making threats to their families as well as threatening the girls themselves. Testimony revealed Tencha should have known that the girls prostituted at their establishment were either underage or victims of the beatings by their pimps.
On the first full day of trial, the jury heard from one of the victims in the case. She detailed the horrific conditions she faced at the hands of the defendant and others, to include being forced into having sex at age 14 after she had come to this country in search of a better life. She described how she was forced to comply with demands at gunpoint and locked in a room. She was eventually impregnated by a “customer” and was moved to another area of the bar. Following the move, she found a way to escape.
Evidence at trial indicated that Tencha made more than $1.6 million in a 19-month period by supplying the upper floor of her cantina for prostitutes to ply their trade. The evidence further revealed that many of the prostitutes were either minors or forced to engage in sex acts at the defendant’s bar. The jury heard that Tencha had engaged in harboring illegal aliens for 13 years and sex trafficking for six years.
The jury found her guilty on all counts as charged to include conspiracy to commit sex trafficking, conspiracy to harbor aliens, aiding and abetting to commit money laundering and conspiracy to commit money laundering. She faces up to life in prison. U.S. District Judge David Hittner, who presided over the trial, has set sentencing for July 22, 2015, at 10:00 a.m. She will remain in custody pending that hearing.
In addition, 15 real properties and other assets for a value of about $2.5 million will be forfeited to the United States having been found to have been purchased with sex trafficking proceeds with the intent to use the proceeds from their sale to make restitution to the victims of this horrible crime
The 13 others who were previously convicted include Lilia Medeles Cerda aka Lilly, 66, Diana Medeles Garcia aka Diana Garcia Marquez, 50, Graciela Medeles Ochoa, 37, Abel Medeles aka Chito, 67, Odelia Hernandez, 47, Delia Diaz, 51, Guadalupe Valdez Lugo aka Lupe, 58, and Talat Crippin aka Chacho, 27, all of Houston; Eduardo Guzman Gonzales aka Miguel Rojas or El Pantera, 33, Alberto Mendez Flores aka Ardilla, 27, Jose L. Uraga aka Wicho, 36, and Jorge Antonio Teloxa-Barbosa aka Eli, 31, all Mexican citizens illegally residing in the U.S. David Garcia, 46, Techa’s son, was also convicted. All had pleaded to varying charges to include alien harboring and money laundering.
Marco Antonio Pulido aka Marco Antonio Salazar or Marco Antonio Pulido, 58, Alfonso Diaz-Juarez aka Ponco or El Grenas are fugitives and warrants remain outstanding for their arrests. Anyone with information about their whereabouts is asking to contact the FBI at 713-693-5000.
The investigation leading to the filing of criminal charges was the result of a three year investigation conducted by members of the Human Trafficking Rescue Alliance (HTRA) in Houston, which includes the FBI, Homeland Security Investigations, Harris County Sheriff’s Office, Internal Revenue Service-Criminal Investigation, Texas Alcoholic and Beverage Commission, Department of State, Texas Department of Public Safety and the Houston Police Department.
Assistant U.S. Attorneys Ruben R. Perez and Joe Magliolo are prosecuting the case.
Federal Charges Filed Against Five Crews Involved in Violent Robberies Throughout Metro AreaRead the Press Release
HOUSTON - In an effort to stem the influx of violent crime in the Houston area, U.S. Attorney Kenneth Magidson announced the filing of five criminal complaints charging 22 defendants with either bank robbery or commercial robbery as well as various firearms charges. Magidson made the announcement along with Perrye K. Turner, special agent in charge of the FBI, and Robert Elder, special agent in charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), as well as various state and local authorities.
The charges in the five separate but similar cases represent a joint initiative aimed at reducing violent takeover robberies of local businesses by organized crews of armed robbers. The criminal complaints were filed April 20-22, 2015, as four of the defendants were taken into custody. An additional 17 defendants have been transferred from state custody to federal custody. Three of those defendants will make their initial appearances in federal court April 24, 2015, at 10:00 a.m. before U.S. Magistrate Judge Frances Stacy, while the remaining 14 are expected to appear April 27-28, 2015, before U.S. Magistrate Judge Stephen Smith. The last defendant remains a fugitive and a warrant remains outstanding for his arrest. Anyone with information about the whereabouts of Michael Cornelious, 25, is asked to contact the FBI at 713-693-5000.
In the first case, Cornelious, Kevin Wayne Viser, 37, Fareed Jerrell Barefield, 26, Carey Dion Mitchell, 24, Johnny Ray Jones, 38, and James Leonard Ferguson, 33, all of Houston, are charged with aiding and abetting bank robbery and aiding and abetting the use and carrying of a firearm during and in relation to a crime of violence. On Aug. 5, 2013, Jones and Ferguson allegedly entered the JP Morgan Chase Bank located at 2929 Shaver Street in Pasadena and ordered customers and employees to the floor at gun point and stole U.S. currency. The complaint filed in that case alleges that while Jones and Ferguson were in the bank, Viser, Barefield, Mitchell and Cornelious were outside conducting surveillance. Cornelious communicated with the suspects inside the bank through an open cell phone connection.
In the second unrelated case, Keith Deshawn Stephens, 27, Keon Kervin Jackson, 26, and Duquam Orlander Mathis, 21, all of Houston, are charged with aiding and abetting bank robbery and discharging a firearm during and in relation to a crime of violence. The criminal complaint alleges that on July 16, 2014, Mathis and Jackson entered the JP Morgan Chase Bank located at 6810 Fry Road in Katy and ordered customers and employees to the floor at gun point. They stole a large amount of U.S. currency, while one of them allegedly fired a shot into the bank’s ceiling to make sure no one followed when they exited. While Mathis and Jackson were in the bank, Stephens was outside of the bank conducting surveillance and communicating with Mathis and Jackson through an open cell phone connection.
The third criminal complaint announced today alleges Calvin Smith, 18, Rodney Ford, 18, Jamone Jones, 20, and Jerrol Bluford, 21, all of Houston, were part of a separate crew responsible for dozens of violent takeover robberies occurring in Harris County. All four men are charged with a federal offense known as the Hobbs Act, interference with commerce by robbery and using and carrying of a firearm during and in relation to a crime of violence. According to the charges, on Jan. 25, 2015, Smith, Ford, Jones and Bluford entered the Metro PCS store at 834 Little York Road #B in Houston. Two of the men were allegedly armed with handguns. Employees of the store were ordered at gunpoint to open the safe and registers in the business and a small amount of U.S. currency was stolen.
The fourth case involves the violent robbery or attempted robbery of three commercial businesses in the North Houston area. Jerrieus Williams, 30, Alonzo Flowers, 22 , Kye Rue, 22, Andre Coleman, 23, and Paul McCoy Jr., 23, all of Houston, are charged with Hobbs Act conspiracy to interfere with commerce by robbery and aiding and abetting the use and carrying of a firearm during and in relation to a crime of violence. On Jan. 14, 2015, Flowers, Coleman and McCoy allegedly entered Jet Pawn, a federal firearms licensee located at 6135 F.M. 2920 in Spring. They were armed with handguns. One of the store employees was ordered at gunpoint to open the safe, from which cash and a firearm were taken. Additionally, 25 guns were stolen from cases on the sales floor. While the robbery was in progress, Williams was across the street conducting surveillance and communicating through an open cell phone line with Coleman. Rue acted as the driver of the getaway car and was waiting outside of the store when the robbers exited.
These same defendants were also allegedly involved in the armed robbery of Cash America Pawn, located at 3211-B F.M. 1960 in Humble on Jan. 9, 2015. The day before the robbery, Williams and Rue cased the pawn store, while Williams and McCoy were identified as the actual robbers. McCoy allegedly held a gun to the head of the store manager and Rue acted as the getaway driver, according to the complaint. These defendants also allegedly attempted to rob the Mad Dog Smoke Shop at 966 West F.M. 1960 in Houston on Jan. 29, 2015. Flowers and Rue allegedly entered the smoke shop with guns and masks covering their faces. However, an employee of the business retrieved his firearm and shot at the suspects, at which time the suspects fell to the ground, but managed to escape before police could arrive. The suspects dropped a firearm, which was later identified as a firearm stolen from Jet Pawn, according to the allegations.
In the final case announced today, Keith Deshawn Stephens, 27, Zachary Loudd, 23, Jerrel James, 21, Andrew Holley, 22 and Crystal Lewis, 22, all of Houston, are charged with aiding and abetting bank robbery and aiding and abetting the use and carrying of a firearm during and in relation to a crime of Violence. On June 27, 2014, three defendants entered the JP Morgan Chase Bank located at 4755 W. Panther Creek in The Woodlands. They ordered customers and employees to the floor at gunpoint and stole a large amount of U.S. currency.
Those charged with aiding and abetting bank robbery face up to 25 years imprisonment, while the conspiracy to interfere with commerce by robbery or interference with commerce by robbery have maximum penalties of 20 years in federal prison. For those charged with aiding and abetting in the possession or using and carrying a firearm during and in relation to a crime of violence, they face a mandatory seven years in prison which must be served consecutively to the other sentence imposed. If convicted of the discharge of a firearm, those defendants face a mandatory 10-year consecutive sentence.All of the charges also carry as punishment a possible $250,000 fine.
The charges in the respective cases are the result of an investigation by the FBI and ATF along with sheriff’s offices in Harris, Montgomery and Fort Bend Counties, police departments in Houston and Pasadena, Texas Rangers and the Harris County District Attorney’s Office with the assistance of CrimeStoppers.
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Cancer Center Guilty of Purchasing Misbranded Foreign DrugsRead the Press Release
CORPUS CHRISTI, Texas – Dr. Mohamad Ayman Ghraowi has entered a guilty plea on behalf of Corpus Christi-based South Texas Comprehensive Cancer Centers PLLC (STCCC) to a violation of the federal Food, Drug and Cosmetic Act (FDCA), announced U.S. Attorney Kenneth Magidson announced.
STCCC was charged with causing the introduction into interstate commerce of misbranded prescription cancer drugs worth more than $900,000, between Feb. 22, 2010, and Jan. 17, 2012. STCCC was a professional association existing under Texas state law with clinics located within the Southern District of Texas, which provided care and treatment for patients with cancer and blood diseases.
In 2012, the Food and Drug Administration (FDA) received information from the United Kingdom Medicines and Healthcare Products Regulatory Agency regarding the appearance of counterfeit versions of the cancer drug Avastin. Regulators determined that some of these counterfeit drugs may have been illegally imported into the U.S. FDA investigators tracked the counterfeit drugs to a distributor offering numerous misbranded foreign drugs for sale to cancer clinics in the U.S. STCCC was determined to be one of the clinics purchasing misbranded foreign drugs from the distributor.
The FDA is responsible for protecting the health and safety of the American public by ensuring, among other things, that drugs are safe and effective for their intended uses and that the drugs bear labeling that contains true and accurate information. FDA's responsibilities include regulating the manufacture and distribution of drugs, including prescription drugs, shipped or received in interstate commerce, as well as the labeling of such drugs. FDA carries out its responsibilities by enforcing the FDCA and other pertinent laws and regulations.
One of the goals of the FDCA has been to ensure the integrity of America’s drug supply. Congress determined that the public interest in the purity of prescription drugs and pharmaceutical products distributed to American consumers is so great as to warrant imposition of the highest standard of care on those who distribute those products to the public. Under the FDCA, the responsibility for maintaining the quality and safety of drugs is not placed on the innocent public that purchases drugs but rather on those who sell and distribute drugs. Under the FDCA, consumers have a right to expect that drug distributors will be vigilant and responsible in matters that affect the public health.
While the U.S. wholesale distribution market is highly regulated, many other markets around the world are not. Pharmaceutical distributors who circumvent U.S. law and illegally import foreign pharmaceuticals into the United States put American consumers at risk for receiving counterfeit, misbranded or adulterated drugs.
Following the guilty plea, U.S. Magistrate Judge B. Janice Ellington ordered the corporation to serve five years of probation and forfeit $900,000, an amount equivalent to the purchase price of the misbranded drugs.
The case was investigated by FDA - Office of Criminal Investigations, U.S. Department of Health and Human Services – Office of Inspector General, Defense Criminal Investigative Service and the Texas Attorney General’s Office – Medicaid Fraud Control Unit. The case is being prosecuted by Assistant United States Attorney (AUSA) Robert D. Thorpe Jr. and Special AUSA Brittany Jensen.
Memorial Herman Printing and Mail Services Manager Admits to Embezzling Nearly $10 Million in False Invoicing SchemeRead the Press Release
HOUSTON – Kenneth Joseph Wild II, 49, of Katy, has pleaded guilty to defrauding his employer, Memorial Herman Health Systems, of nearly $10 million over a 14-year period, announced U.S. Attorney Kenneth Magidson.
In a proceeding before the Honorable Kenneth M. Hoyt this morning, Wild entered his guilty plea to a criminal information charging a single count of mail fraud.
Wild’s plea agreement explains that on or about Feb. 23, 2001, he was appointed as manager of Printing and Mail Services, a division within Memorial Herman which oversees and outsources the creation of all informational and promotional materials disseminated by Memorial Herman. In this role, Wild had the responsibility for approving invoices submitted for printing services utilized by Memorial Herman and for forwarding those invoices to accounts payable for payments to be remitted via checks delivered by U.S. mail.
On or about March 8, 2001, just two weeks after Wild’s promotion to management, an entity named Digital Designs Limited began submitting invoices to Memorial Herman for printing and data conversion services purportedly provided to Memorial Herman. Wild used his position to cause the Digital Designs invoices to be approved. Over the span of 14 years, from March 2001 through March 2015, Wild submitted 229 invoices totaling $9,302,667.29 in the name of Digital Designs for services that were never provided to Memorial Herman.
On March 11, 2015, Memorial Herman’s chief audit and compliance officer received an anonymous, hand-written letter alleging the Digital Designs account was an anomalous, ghost account and asking for an investigation. As a result, Memorial Herman swiftly conducted a preliminary review of the account and immediately reached out to law enforcement to report the incident.The investigation revealed that the address listed for Digital Designs was a P.O. Box opened by Wild in 1996. In October 2001, Wild had obtained an assumed name certificate from the Harris County Clerk’s Office for “Digital Designs of Texas, P.O. Box 36345, Houston, TX 77236.” The investigation further revealed that payments remitted to Digital Designs were deposited into a bank account which was assigned to Wild with a dba of Digital Designs. Wild deposited the checks from Memorial Herman into that account and then transferred those funds to other accounts he controlled. He then used the funds to support his extravagant lifestyle which included, among other things, making significant personal expenditures, purchasing a home and making substantial improvements and extensive international travel for himself and his family and friends.
As part of his plea agreement, Wild agreed to forfeit his home and all of its contents, his vehicles, his 401K pension plan with Memorial Herman and any other financial assets in his possession. These funds will be used to pay restitution to Memorial Herman.
Judge Hoyt accepted the plea today and has set sentencing for June 29, 2015, at which time Wild faces up to up to 20 years in federal prison and a possible $250,000 maximum fine. He has been in custody since his arrest on March 21, 2015, where he will remain pending that hearing.
The charges are the result of an investigation by U.S. Postal Inspection Service. Assistant U.S. Attorney Jason Varnado is prosecuting the case.
Killeen Area Man Gets 30 Years for Sex Trafficking of A MinorRead the Press Release
HOUSTON – Bobby Barrett, aka “Black,” 31, has been ordered to federal prison following his convictions of sex trafficking of a minor who was under 18 with force, fraud or coercion, and transporting her across state lines for the purpose of engaging in prostitution, announced U.S. Attorney Kenneth Magidson. The federal jury convicted the Killeen man after a four-day trial and less than two hours of deliberation on July 17, 2014.
Today, U.S. District Judge Keith P. Ellison, who presided over the trial, handed Barrett 360 months for the sex trafficking and 360 months for the transportation convictions, respectfully. The sentences will be served concurrently for a total of 30 years in federal prison. He was further ordered to serve 10 years on supervised release following completion of the prison term and must also register as a sex offender.
The federal charges brought against Barrett were the result of an investigation conducted by the Houston Innocence Lost Task Force, led by the FBI and the Shreveport, La., Police Department (SPD). The investigation began in October 2013 after the victim was detained during an enforcement operation in Houston. Barrett bonded her out and then transported her across state lines to Louisiana where ads for prostitution services were posted. SPD arrested her in another operation less than two weeks later along with Barrett and another woman.Testimony at trial revealed Barrett posted no less than 26 Internet prostitution ads from his phone. Barrett rented hotel rooms for the prostitution dates and supplied the victim and another woman with marijuana. The victim, a 17-year-old minor, testified she was the person depicted in seductive settings for the purpose of some of the advertisements for prostitution posted online. She said that at the time of the incidents, Barrett not only knew she was 17, but her High School identification was found in his pocket. Moreover, the minor testified she feared Barrett and that he cut her face during an altercation just prior to his arrest.
In addition to the victim’s description, an expert further testified as to how this subculture operates. Barrett took all monies the minor victim earned.
Forensic analysis of Barrett’s cell phone conducted by the FBI revealed pictures of multiple victims that were used in Backpage ads posted on the Internet. Phone records also confirmed that Barrett posted multiple ads on Backpage, including at least two minors under the age of 18. Hotel records verified that Barrett traveled out of state with the victims.
Barrett was found guilty of one count each of sex trafficking of a minor and transportation of a minor with intent to engage in criminal sexual activity. He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case, prosecuted by Assistant U.S. Attorneys Julie N. Searle and Sherri L. Zack, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Corpus Christi Man Sentenced for Sexual Exploitation of A ChildRead the Press Release
CORPUS CHRISTI, Texas – Sylvestre Reyes, Jr., 40, of Corpus Christi, has been ordered to prison for nearly 25 years following his conviction of sexual exploitation of a child, announced U.S. Attorney Kenneth Magidson. Reyes pleaded guilty in February 2015.
Today, Senior U.S. District Judge sentenced Reyes to 290 months in federal prison and will be on supervised release for the rest of his life. He must also register as a sex offender
In June 2014, law enforcement was dispatched to Driscoll Children’s Hospital in reference to a sexual assault of a child. The victim was identified and confirmed the abuse. Authorities conducted a search warrant and seized the cellular telephone of both Reyes and the victim which resulted in the discovery of 42 images of a child involved in sexually explicit conduct.
Reyes has remained in custody since his arrest where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. The charges against Reyes were the result of an investigation conducted by Homeland Security Investigations and Corpus Christi Police Department – Internet Crimes Against Children Task Force.
This case, prosecuted by Assistant U.S. Attorney (AUSA) Hugo R. Martinez and Special AUSA Brittany Jensen, 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."
Texas-Based Citizens Medical Center Agrees to Pay U.S. $21.75 Million to Settle Alleged False Claims Act ViolationsRead the Press Release
VICTORIA, Texas - Citizens Medical Center, a county-owned hospital in Victoria, has agreed to pay the United States $21,750,000 to settle allegations that it violated the False Claims Act by engaging in improper financial relationships with referring physicians, the Justice Department announced today.
“Any type of false claim or improper behavior under our health care fraud laws are serious allegations that will not be taken lightly,” said U.S. Attorney Kenneth Magidson of the Southern District of Texas. “The settlement announced today represents the effectiveness of our continuing efforts and an example of our priorities in this arena.”
“The Department of Justice has longstanding concerns about improper financial relationships between health care providers and their referral sources, because those relationships can alter a physician’s judgment about the patient’s true health care needs and drive up health care costs for everybody,” said Acting Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division. “In addition to yielding a recovery for taxpayers, this settlement should deter similar conduct in the future and help make health care more affordable.”
The settlement announced today resolved allegations that the hospital provided compensation to several cardiologists that exceeded the fair market value of their services. The settlement also resolved allegations that the hospital paid bonuses to emergency room physicians that improperly took into account the value of their cardiology referrals. The United States contended that these agreements violated the Stark Statute and the False Claims Act. The Stark Statute restricts the financial relationships that hospitals may have with doctors who refer patients to them.
The allegations settled today arose from a lawsuit filed by three whistleblowers, Dakshesh “Kumar” Parikh, Harish Chandna and Ajay Gaalla, under the qui tam provisions of the False Claims Act. Under the act, private citizens can bring suit on behalf of the government for false claims and share in any recovery. The whistleblowers will collectively receive $5,981,250 from the recoveries announced today.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $23.9 billion through False Claims Act cases, with more than $15.2 billion of that amount recovered in cases involving fraud against federal health care programs.
The case, United States ex rel. Parikh, et al. v. Citizens Medical Center, et al., Case No. 6:10-cv-64 (S.D. Tex.), was handled by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Southern District of Texas and the U.S. Department of Health and Human Services’ Office of Inspector General. The claims settled by this agreement are allegations only, and there has been no determination of liability.
Laredo Co-Conspirators Receive Significant Sentences for Selling Drugs and Guns in A School ZoneRead the Press Release
LAREDO, Texas – Luis Macias-Molinas, 32, Ricardo Rosas Jr., 27, and Manuel Aguilar, aka Chino, 25, all of Laredo, have been ordered to federal prison following their convictions for drug trafficking and gun related charges, announced U.S. Attorney Kenneth Magidson. Macias and Rosas pleaded guilty Oct. 17, 2013, while Aguilar was convicted Sept. 10, 2013.
Today, U.S. District Judge Marina Garcia Marmolejo ordered Macias to serve 156 months for conspiracy to sell methamphetamine within a school zone as well as felon in possession of firearm charges. Rosas was also convicted of the school zone methamphetamine charges and will serve a 151-sentence. Both were further ordered to serve five years of supervised release following completion of their sentences. Aguilar received a 40-month sentence for being a felon in possession of a firearm to be followed by three years of supervised release. At the hearing today, Macias and Rosas admitted to organizing a methamphetamine trafficking organization within Laredo. In handing down this sentence, Judge Marmolejo stated she was doing taxpayers a favor by imposing lengthy prison terms and keeping the community safe.
These individuals were involved in a large drug and firearm trafficking Investigation in Laredo and San Antonio. Between May 24, 2013, and June 28, 2013, Macias and Rosas sold more than 600 grams of methamphetamine to undercover federal agents, including multiple sales within a school zone. On June 28, 2013, Macias attempted to sell 118.5 grams of methamphetamine for six semi-automatic firearms. He purchased the firearms from federal agents and intended to sell the weapons to Aguilar. Macias and Rosas were arrested before Aguilar received the weapons. Subsequently, agents searched their respective residences and discovered a variety of drugs and guns within the premises.
Rosas admitted to employing Macias, who then distributed the narcotics throughout the community.
The case was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Laredo Police Department. Assistant U.S. Attorneys Sanjeev Bhasker and Homero Ramirez prosecuted the case.
Houston Man Arrested Following Social Media PostsRead the Press Release
HOUSTON – Frederick Ramon Robinson, 45, a Houston resident and convicted felon, has been arrested and is set to make his initial appearance on charges of unlawfully possessing a firearm, announced U.S. Attorney Kenneth Magidson.
Robinson was arrested today and is set to make his initial appearance before U.S. Magistrate Judge Frances H. Stacy at 2:00 p.m.
The criminal complaint alleges that authorities initiated an investigation into Robinson after he publicly posted several messages on various social media sites such as Twitter. Those alleged posts claimed such comments as “if white people hate ISIS so much, then I like ISIS. The enemy of my enemy is my friend. #chopthemheadsoff Amerikkka is the Black Man’s Foe.” The complaint further alleges he tweeted such statements as “I say, don’t hesitate – start shooting in their cars. empty whole clips. find them at home and fire bomb it. anything., do something.”
According to the charges, Robinson posted pictures of firearms he owned and allegedly demonstrated how to load firearms in videos he posted online.
As a convicted felon, he is prohibited from possessing firearms per federal law. If convicted, he faces up to 10 years in prison.
The charges are the result of investigation conducted by a joint State and federal task force that includes the Bureau of Alcohol Tobacco, Firearms and Explosives and the FBI. Assistant U.S. Attorney Alamdar S. Hamdani is prosecuting the case.
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Officer and Co-Defendant Arrested in Conspiracy to Traffic CocaineRead the Press Release
McALLEN, Texas – Noel Pena, 29, a Rio Grande City Police Department investigator, has been arrested and made his initial appearance on charges of conspiracy to possess with intent to distribute cocaine, announced U.S. Attorney Kenneth Magidson. Also charged is Hector Salinas-Hinojosa, 21, of Roma.
Salinas-Hinojosa was arrested April 17, 2015, upon the filing of a criminal complaint. Pena, of Rio Grande City, was taken into custody the following morning. They both made their initial appearances today before U.S. Magistrate Judge Dorina Ramos in McAllen. They will remain in custody pending a detention hearing set for Thursday at 11:00 a.m. before Judge Ramos.
“These arrests illustrate the ability of law enforcement agencies to leverage their individual resources to work together and achieve justice,” said Mark Dawson, Deputy Special Agent in Charge, Homeland Security Investigations (HSI). “While we take no pleasure in arresting a fellow law enforcement officer, HSI, along with our law enforcement partners, are committed to keeping our communities safe by conducting robust joint investigations, and following those investigations wherever they lead.”
The criminal complaint alleges Pena and Salinas-Hinojosa conspired to provide a ‘fake’ police report to an undercover officer who was acting as a cocaine trafficker. The undercover “cocaine trafficker” claimed to need assistance in stealing the majority of a 10-kilogram cocaine load he was holding for the drug cartels. On April 9, 2015, Salinas-Hinojosa and Pena met with the undercover officer and agreed to provide the ‘fake’ police report to make it appear that 10 kilograms of cocaine had been seized by law enforcement, according to the charges. In exchange they were allegedly supposed to be paid $10,000. The complaint alleges that at the time of the meeting, the undercover officer provided $5,000 as a down payment for the report.
The scheme alleged in the complaint involved Pena, as an investigator assigned to the Starr County High Intensity Drug Trafficking Area Task Force, being tipped off to the location of the cocaine. He would then stage a law enforcement operation.
On April 11, 2015, two kilograms of cocaine was left at a stash house location in Garceno. After being ‘tipped’ off the location, Pena allegedly proceeded to the residence and ‘found’ the cocaine and then obtained a search warrant to seize it. Subsequently, on April 17, 2015, Salinas-Hinojosa provided the ‘fake report’ to the undercover officer and was paid the remaining $5,000.
The charges are the result of investigation conducted by HSI, Drug Enforcement Administration, Texas Department of Public Safety and FBI with assistance from the Texas Rangers. Assistant U.S. Attorneys Juan F. Alanis and Ted Imperato are prosecuting the case.
A defendant is presumed innocent unless convicted through due process of law.Woman Sentenced for Selling Counterfeit Samsung BatteriesRead the Press Release
HOUSTON – Graciella Balderrama-Acevedo, 53, has pleaded guilty and was sentenced for her part in a conspiracy to sell counterfeit Samsung batteries, announced U.S. Attorney Kenneth Magidson along with Brian Moskowitz, special agent in charge of Homeland Security Investigations (HSI).
At the hearing today, the court heard from a representative of Samsung who explained Samsung takes pride in producing quality products. He noted that they take very seriously and are extremely concerned anytime counterfeit products, that are a violation of their trademark, are introduced into the United States. Of particular concern is when they pose such a public safety risk like counterfeit lithium-ion batteries. U.S. District Judge Gray H. Miller found Balderrama responsible for more than $90,000 in restitution to Samsung and will serve 12 months and 1 day in federal prison. Balderrama is a Mexican citizen who had resided in Houston and is expected to face deportation proceedings following her release from prison.
Balderrama engaged in a conspiracy to traffic in counterfeit goods. Balderrama received the lithium-ion batteries from an individual in China who was engaged in sending them in bulk to people in the U.S. who then forward the counterfeit products on to individual Ebay purchasers.
On Oct. 30, 2014, a search warrant was executed at Balderrama’s home. At that time, authorities found the packaging, additional batteries as well as text communications from Balderrama supporting her involvement in this conspiracy. In some of those messages with her contact in China, she makes admissions as to knowledge of the counterfeit items but agrees to continue working.
Balderrama admitted to authorities she knew the batteries were not actual Samsung batteries but continued to package and sell them anyway.
Counterfeit Lithium-ion batteries are a public safety concern because they do not follow safety regulations and have been found to set themselves on fire and harm individuals. This is especially a growing problem in China where the batteries are made.
Those charged in relation to this case were identified through an investigation conducted by HSI. The case is being prosecuted by Assistant U.S. Attorneys Celia Moyer and Richard Bennett.
Two Convicted of Murder on Federal LandRead the Press Release
HOUSTON – Two men have entered guilty pleas, admitting they murdered a teenager in the Sam Houston National Forest, announced U.S. Attorney Kenneth Magidson.
Cristian Alexander Zamora aka Christian Zamora, Alexander, Alex or Pollo and Ricardo Leonel Campos Lara aka La Muerte entered pleas of guilty to aiding and abetting each other and others with the murder of a 16-year-old male victim on Sept. 22, 2013.
Zamora, 22, and Lara, 19, both of El Salvador, admitted they took part in the murder by striking the male victim with a bat and a machete multiple times. Zamora and Lara admitted they had received an order from MS-13 members to kill the teenager. After receiving the order, they assisted in taking him to the forest where they then struck him with a bat and machete to the point of near decapitation.
U.S. District Judge Ewing Werlein, accepted the pleas today and has set sentencing for July 10, 2015. They are facing life in federal prison.
The charges are the result of an investigation by the FBI, Houston Police Department, Texas Rangers and the Walker County Sheriff’s Office. Assistant U.S. Attorneys Mark E. Donnelly and Casey MacDonald are prosecuting the case.
Laredoan Arrested for Online Solicitation of A MinorRead the Press Release
LAREDO, Texas - Fernando Hernandez-Rodas, 24, has been arrested on charges of coercion or enticement of a minor, announced U.S. Attorney Kenneth Magidson. Hernandez-Rodas is a Honduran National who resided in Laredo legally under the deferred action for childhood arrivals (Dream Act).
Hernandez-Rodas was arrested last night upon the filing of a criminal complaint. He is expected to make his initial appearance Monday April 20, 2015 before U.S. Magistrate Judge J. Scott Hacker in Laredo.
“This case, once again, illustrates the true value of the Laredo Child Exploitation Task Force in bringing together multiple law enforcement agencies with the goal of protecting the children of our community,” said Deputy Special Agent in Charge Mark Dawson, Homeland Security Investigations (HSI) Laredo. “We’re proud of the relationships we’ve forged with our law enforcement partners.”
The criminal complaint alleges Hernandez-Rodas was communicating with a person he believed to be a 14-year-old girl. In reality, he was actually talking to an undercover agent. During the course of the communications, Hernandez-Rodas made arrangements to meet and engage in sexual activity with the “young girl.”
He was apprehended as he arrived at the designated meeting place.
“We would like to remind parents that it’s extremely important to keep a watchful eye on children’s online activity,” said Webb County Sheriff Martin Cuellar. “In this case, luckily, the person whom the suspect thought he was speaking with was an undercover agent.”
“Law enforcement is dedicated to protecting the future of our community - the children of Laredo,” said Chief Ray Garner of the Laredo Police Department. “Those that are suspected of preying on our children are being stopped by a proactive child predator program manned by federal, city and county law enforcement. The Laredo Police Department is in support of this program and we thank the men and women that protect our children each day.”
The arrest of Hernandez-Rodas was a result of Operation Child Guardian, which was launched by the Webb County Sheriff’s Office in 2009. The success of these investigations have put dozens of suspected child predators behind bars.
The prosecution is being 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."
The investigation was led by HSI with assistance from the Webb County Sheriff's Office Cyber Crime Unit and the Laredo Police Department. Assistant U.S. Attorney Sarah Ellison is prosecuting the case.
Former Executive Heads to Federal Prison for Defrauding Shipping CompanyRead the Press Release
HOUSTON – Kathleen Creel, a former employee of Wilhelmsen Ships Service Inc., has been ordered to federal prison following her conviction of 10 counts of wire fraud in connection with defrauding her former company, announced United States Attorney Kenneth Magidson. Creel, of New York City, N.Y., pleaded guilty Feb. 6, 2015.
Today, U.S. District Judge Ewing Werlein Jr., who accepted the guilty plea, handed Creel a 60-month sentence to be immediately followed by three years of supervised release. She was further ordered to pay $4,684,860.51 in restitution. In handing down the sentence, Judge Werlein noted that her claim to want to make repayment “rang hollow” because she had been on release for years and had not paid one single dollar back yet.
As part of her guilty plea, Creel, 43, admitted that from June 2003 through August 2009, she was employed by Wilhelmsen and a predecessor company at its Pasadena headquarters as the company’s customs and tax manager. In this role, Creel had access to sensitive financial information, including billing records and bank account information for Wilhelmsen vendors. Creel also admitted she had access to Wilhelmsen bank accounts and the ability to cause Wilhelmsen to make payments to vendors.
Creel admitted that from at least June 2003 through approximately August 2009, she defrauded Wilhelmsen by embezzling money from the company’s bank accounts. Creel used Wilhelmsen’s accounting system to cause a series of wire transfers from the company’s bank accounts into her own. Specifically, Creel carried out the scheme by creating false invoices from two Wilhelmsen vendors. Creel entered the false invoices into Wilhelmsen’s accounting system and either approved or caused them to be approved for payment. These actions then caused interstate wire transfers from Wilhelmsen’s New York based bank account into Creel’s bank account.
Previously released on bond, Creel was taken into custody following the sentencing today where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The case is being investigated by the FBI and prosecuted by Assistant U.S. Attorney John Pearson.
Nigerians Sentenced for Identity TheftRead the Press Release
HOUSTON – Moshood Balogun and Ayodeji Fashola, both 60, have been ordered to federal prison following their convictions in a mail and wire fraud conspiracy, announced U.S. Attorney Kenneth Magidson. The Nigerian immigrants each pleaded guilty in June 2014.
Today, U.S. District Judge David Hittner ordered Balogun to serve a total of 145 months in federal prison for his convictions of conspiracy to commit mail and wire fraud and aggravated identity theft. Fashola was convicted of conspiracy to commit mail and wire fraud and procurement of naturalization by fraud and was ordered to serve 168 months in federal prison. They were further ordered to pay restitution in the amount of $1,681,521.69. Both men are naturalized U.S. citizens. However, Fashola’s citizenship was revoked after he admitted he committed fraud in its procurement and is expected to face deportation proceedings following release from prison.
Fashola formed a shell company called Kingsway Credit Collection in Cypress. He used the company to purchase credit profiles from a credit reporting company in Kennesaw, Ga. The credit profiles contained the names, dates of birth, Social Security numbers, addresses and other personal identity information (PII) of people located throughout the United States.
Fashola transferred the PII to Balogun, who then sold it to criminals throughout the country who used the information to commit a variety of different fraud schemes such as credit card fraud and bank fraud. Records show that Kingsway Credit Collection received as many as 100,000 credit profiles during this scheme and Balogun charged his customers $40 to $50 for each credit profile.
The case was investigated by the U.S. Postal Inspection Service. Assistant U.S. Attorney Jay Hileman is prosecuting the case.
Laredoan Learns Fate After Alien Harboring Jury ConvictionRead the Press Release
LAREDO, Texas – Gustavo Villegas, 28, of Laredo, has been ordered to prison following his conviction on four counts related to harboring 21 illegal aliens for profit, announced U.S. Attorney Kenneth Magidson. A federal jury convicted Villegas Jan. 27, 2015, following a one-day trial and 90 minutes of deliberation.
Today, U.S. District Judge Janis Graham Jack, who presided over the trial, handed Villegas the 27-month sentence to be immediately followed by two years of supervised release.
At trial, the jury heard that Villegas took part in a conspiracy to smuggle and harbor illegal aliens in Laredo in July 2014. Villegas transported illegal aliens to a local Burger King restaurant as well as both the American Best Value Inn and Gateway Inn hotels in Laredo. Homeland Security Investigations (HSI) ultimately discovered a total of 21 illegal aliens at the hotels. Through ongoing investigation, agents tracked vehicles to Villegas and others and he was arrested on Oct. 23, 2014.
When HSI agents learned of a smuggling event which was to occur at an HEB parking lot in Laredo, they began conducting surveillance and witnessed a number of persons exit a Ford Focus car and get into a Dodge Durango truck Villegas was driving. Agents followed the vehicle to a Burger King where four of the people got out of the Dodge truck and boarded another vehicle bound for America’s Best Value hotel in Laredo. Several people got out and entered a room at the hotel. Agents witnessed similar activity leading them to the Gateway Inn hotel where more individuals were seen entering that hotel on two separate occasions. Eventually, agents knocked on the doors of both hotels and asked for consent from the occupants.
The jury heard and was provided evidence that Villegas had rented the room at America’s Best Value hotel which was found to hold seven El Salvadoran nationals and one Honduran national. Co-defendant Rodolfo Castaneda rented the Gateway Inn hotel room which held 13 El Salvadoran nationals.
At trial, the United States presented testimony from numerous HSI agents, the undocumented aliens as well as local hotel owners. The government also provided evidence of vehicle registration information connecting Villegas to multiple vehicles used in this conspiracy.
Villegas will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Castaneda previously pleaded guilty and is awaiting sentencing.
HSI conducted the investigation. Assistant U.S. Attorneys Jorge Vela and Sanjeev Bhasker prosecuted the case.
Houston Man Pleads Guilty to Role in Money Laundering ConspiracyRead the Press Release
McALLEN, Texas – Alejandro Morales-Flores, 60, a naturalized U.S. citizen residing in Houston, has entered a plea of guilty in McAllen federal court to conspiring to commit money laundering, announced U.S. Attorney Kenneth Magidson.
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 emplty, 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.
U.S. District Judge Randy Crane accepted the plea today and set sentencing for June 29, 2015, at which time Morales-Flores faces up to 20 years in federal prison and a possible fine of more than $2.8 million. He was permitted to remain on bond pending that hearing.
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.
Former Chief Compliance Officer Arrested for Embezzling from EmployerRead the Press Release
HOUSTON – Dawn Harris, 36, of Katy, a former chief compliance officer for LTD Financial Services L.P., has been charged with embezzling money from her then-employer from 2007 to 2013, announced U.S. Attorney Kenneth Magidson.
The indictment was returned under seal April 15, 2015, and unsealed today upon her arrest. She is scheduled to make her initial appearance before U.S. Magistrate Judge Frances Stacy on Friday, April 17, 2015.
According to the Indictment, Harris was employed by LTD Financial starting in 1999 and was promoted several times, eventually becoming LTD Financial’s vice president of compliance in 2011 and finally its chief compliance officer in April 2013.
Starting in 2007, according to the indictment, Harris embezzled money from LTD Financial by abusing her authority to issue checks to pay for invoices that the vendors did not submit. Later, as she was promoted, Harris allegedly modified her scheme by ordering checks to be issued to pay for legal settlements that did not exist. Harris then deposited these fraudulent checks into her account and used the money to support her lifestyle, according to allegations. Over this seven year period, Harris is alleged to have embezzled approximately $440,090.70.
The Indictment charges Harris with 10 counts of wire fraud which carries a potential term of 20 years in federal prison on each count of conviction as well as a $250,000 maximum fine or twice the pecuniary gain or loss.
The case is being investigated by the U.S. Secret Service’s Houston Area Fraud Task Force and is being prosecuted by Assistant U.S. Attorney Michael Chu.
An Indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Bank Teller Charged with FraudRead the Press Release
HOUSTON – Christina Ann Ramirez, 26, of Houston, has appeared in court today on charges of bank fraud and aggravated identity theft, announced U.S. Attorney Kenneth Magidson.
Ramirez surrendered to authorities yesterday and appeared today before U.S. Magistrate Judge Frances H. Stacy.
The indictment alleges Ramirez used her position as a Wells Fargo Bank teller to cash approximately 95 tax refund checks that had been obtained by applying for refunds using stolen identities. Ramirez allegedly cashed the checks from May 2-25, 2012, which had a combined total of $610,228.48.
If convicted, she faces up to 30 years imprisonment and a $1 million possible fine for bank fraud as well as a mandatory two-year-term for aggravated identity theft which must be served consecutively to any other prison term imposed.
The charges are the result of an investigation by Internal Revenue Service - Criminal Investigation. Assistant U.S. Attorney Jay Hileman 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 lawTDCJ Inmate Sentenced to Federal Prison for Threatening Federal JudgeRead the Press Release
HOUSTON - George Yarbrough, 43, a former resident of Houston, has been ordered to federal prison following his conviction of mailing a threatening communication, announced U.S. Attorney Kenneth Magidson.
Today, U.S. District Judge Nancy Atlas, who accepted the guilty plea, handed Yarbrough a 21-month sentence. Yarbrough’s sentence was ordered to being after he finishes serving his current sentence in the Texas Department of Criminal Justice (TDCJ).
As part of his plea, Yarbrough admitted that on or about Sept. 26, 2014, he knowingly mailed a communication threatening to kill a specific federal judge in Houston. The communication was received at the Bob Casey U.S. Courthouse at 515 Rusk St. in Houston and had a return address implicating Yarbrough, who was an inmate serving a sentence within TDCJ.
In the letter, Yarbrough warned the judge that he intended to kill him as soon as he got out of TDCJ. Yarbrough claimed the judge had ruined Yarbrough’s life and that he had lost of his loved ones. Yarbrough repeated the threat throughout the letter with a final note that “…I’m coming to get you and your family!”
Yarbrough was interviewed on two occasions and never denied sending the letter.
Yarbrough indicated the basis for the threat was because the judge had had dismissed a civil rights lawsuit Yarbrough filed against TDCJ personnel several years earlier.
He will be returned to state custody. Upon his release from state custody he will be transferred to a U.S. Bureau of Prisons facility to be determined in the near future. Yarbrough was also ordered to serve a three-year term of supervised release upon his release from federal prison, during which he will participate in mental health counseling.
The FBI, U.S. Marshals Service and the TDCJ-Office of Inspector General investigated the case which is being prosecuted by Assistant U.S. Attorney Mel Pechacek.
Mexican Man Heads to Federal Prison for Illegally Reentering the United StatesRead the Press Release
McALLEN, Texas – Victor Manuel Blancas-Rosas, 40, of Mexico, has been ordered to prison following his conviction of being unlawfully present in the country after having been previously deported or removed, announced U.S. Attorney Kenneth Magidson. A McAllen federal jury convicted Blancas-Rosas Dec. 3, 2014, after only two hours of testimony and 15 minutes of deliberation.
Today, U.S. District Judge Randy Crane, who presided over the trial, handed Blancas-Rosas a 48-month sentence. At the hearing, additional evidence was presented by the defendant contending he was an incorporated individual under the Uniform Commercial Code and therefore not subject to imprisonment. Judge Crane noted that his claims were not meritorious and proceeded to hand down the sentence. Blancas-Rosas is expected to face deportation proceedings following his release from prison.
On April 20, 2014, a concerned citizen saw possible illegal aliens running from a car on US-281 into the brush between Encino and the U.S. Border Patrol Checkpoint at Falfurrias. Agents quickly apprehended and detained Blancas-Rosas. The investigation revealed Blancas-Rosas had prior felony convictions and had previously been removed from the U.S.
At trial, he admitted he had illegally entered the country, had been deported on four previous occasions and to conducting prior felony criminal conduct.
Representing himself, his defense was that he had renounced his Mexican citizenship, was a citizen of the world and had copywrited his name. The jury ultimately found him guilty as charged.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Border Patrol investigated. Assistant U.S. Attorney Steven T. Schammel is prosecuting the case.
Three Men Sentenced in Alien Smuggling ConspiracyRead the Press Release
HOUSTON – Three people have been sentenced for their involvement in a conspiracy to harbor and transport illegal aliens, announced U.S. Attorney Kenneth Magidson along with Brian Moskowitz, special agent in charge of Homeland Security Investigations (HSI). Jose Heriberto Lopez, 42, Jose Arenas-Lucero, 51, and Miguel Angel Medina-Ortiz, 37, pleaded guilty in September, October and November 2014, respectively.
Today, U.S. District Judge Vanessa Gilmore considered relevant conduct for an incident in Oklahoma which involved the death of an alien being transported by Lopez. As a result, he received a sentence of 70 months in federal prison. Arenas-Lucero and Medina-Ortiz received respective sentences of 24 and 18 months. All are all citizens of Mexico who had resided in Houston and expected to face deportation proceedings following completion of their federal prison sentences.
Lopez and others engaged in a conspiracy to harbor and transport illegal aliens from April 2014, until his arrest June 12, 2014. Authorities discovered a stash house in Houston following a 911 call. HSI ultimately discovered 34 undocumented aliens being held in the house that had boarded up windows.
The undocumented aliens claimed the defendants would take their shoes, phones and other property upon entry into the home. The illegal aliens were detained at the house by guards until their families had paid the rest of their bill for transportation further into the United States. Lopez and Arenas-Lucero were guards in the home and occasionally drove the aliens to their next destination. Medina-Ortiz was involved in the payment portion of the scheme.
The three defendants have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
HSI investigated. Assistant U.S. Attorney Celia Moyer prosecuted the case.
Mexican Man Pleads Guilty on Eve of Trial to Trafficking MethamphetamineRead the Press Release
LAREDO, Texas - Andres Villarreal-Parades, 28, of Nuevo Laredo, Mexico, has been convicted of possession with intent to distribute more than 500 grams of methamphetamine, announced U.S. Attorney Kenneth Magidson. Villarreal-Parades was set to begin trial tomorrow, but instead opted to plead guilty today.
Parades admitted trafficking 20.5 kilograms of crystal methamphetamine containing a 95% purity-level.
On July 28, 2014, authorities arrested co-conspirator Gilberto Jorge Rodriguez for a traffic violation, at which time they seized approximately 20.5 kilograms of crystal methamphetamine. Upon further investigation, authorities identified Villarreal-Parades as the person who arranged the drug load.
Villarreal-Parades was arrested Aug. 21, 2014, and seized telephones that were associated with the drug conspiracy. Through analysis, agents were able to connect the two defendants and discovered a drug operation that shipped large bulk methamphetamine from Laredo to Houston and Dallas.
The conspiracy spanned February through July 2014, during which time approximately 100 kilograms of methamphetamine, valued at millions of dollars, were moved throughout the United States.
Rodriguez, 48, of Laredo, pleaded guilty in December 2014.
U.S. District Judge Marina Garcia-Marmolejo, who accepted both of the pleas, will set sentencing a later date. At that hearing, each faces a minimum of 10 years and up to life in federal prison and a possible $10 million maximum fine.
This charges are the result of an investigation by Homeland Security Investigations, police departments in Freer and Laredo as well as the High Intensity Drug Trafficking Area Task Force. Assistant U.S. Attorney (AUSA) Sanjeev Bhasker and former AUSA Raul Guerra prosecuted the case.
Houston Man Sentenced for Receipt and Possession of Child PornographyRead the Press Release
HOUSTON – Michael Brandon Garza, 33, has been ordered to prison following his convictions for receiving and possessing child pornography, announced U.S. Attorney Kenneth Magidson. Garza pleaded guilty Sept. 2, 2014.
Today, U.S. District Judge Kenneth M. Hoyt handed Garza 168 and 120 months for the receipt and possession convictions, respectively. The sentences will run concurrently. Garza will serve 15 years of supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. Garza will also be ordered to register as a sex offender.
Garza is considered a savvy computer user. He admitted he utilized multiple email addresses and online identities to communicate with underage females and obtain child pornography images and videos via the Internet. Specifically, he contacted underage females in Pennsylvania and New Mexico, both of whom believed Garza was a teenager.
Garza was identified during the investigation and law enforcement subsequently executed a search warrant at his Houston residence on Dec. 11, 2012. At that time, Garza acknowledged the email address that law enforcement had received from the underage girls and that he had he had received videos containing child pornography.
Several electronic media devises were seized which resulted in the discovery of numerous images/videos.
Garza will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges against Garza were the result of an investigation conducted by members of the Houston Area Cyber Crimes Task Force of the FBI, which focuses its attention on, among other things, investigating offenses involving the exploitation of children via the Internet.
This case, prosecuted by Assistant U.S. Attorney Sherri L. Zack, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation. Led by United States Attorneys’ Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Brazoria Man Arrested on Child Pornography ChargesRead the Press Release
GALVESTON, Texas – Joseph Saunders, 34, of Brazoria, has been arrested on two charges related to child pornography, announced U.S. Attorney Kenneth Magidson.
The two-count indictment was returned under seal March 11, 2015, and unsealed upon his arrest this afternoon. He is expected to make his initial appearance before U.S. Magistrate John R. Froeshner in Galveston at 10:00 a.m. tomorrow, at which time the government expects to request he be detained pending further criminal proceedings.
Saunders is charged with one count each of receipt and possession of child pornography.
If convicted, he faces up to 20 years in federal prison for the receipt and a maximum of 10 years for the possessing of child pornography.
The investigation was conducted by the Houston Metro Internet Crimes Against Children Task Force and Homeland Security Investigations.
This case, being prosecuted by Assistant U.S. Attorney Carrie Wirsing, is being 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."
Victoria Man Gets Maximum Sentence for Sexual Exploitation of A ChildRead the Press Release
CORPUS CHRISTI, Texas – Jason Paul Tijerina, 30, of Victoria, has been ordered to prison for the sexual exploitation of a child, announced U.S. Attorney Kenneth Magidson. Tijerina pleaded guilty in December 2014.
Today, U.S. Circuit Judge Gregg Costa, sitting by designation, sentenced Tijerina to the statutory maximum of 30 years in federal prison to be immediately followed by 25 years of supervised release. He must also register as a sex offender.
In January 2014, Victoria Police Department responded to Tijerina’s residence in reference to a sexual assault. The victim was identified and confirmed the abuse. Authorities conducted a search warrant and seized Tijerina’s cellular telephone from his residence which resulted in the discovery of 10 thumbnail files and one video of a child involved in sexually explicit conduct.
Tijerina has remained in custody since his arrest and will remain there pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. The charges against Tijerina was the result of an investigation conducted by Homeland Security Investigations and 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."
Woman Convicted and Man Sentenced in Houston Armored Car RobberyRead the Press Release
HOUSTON – Emeral Watson, 19 of Houston, has entered a plea of guilty in relation to an attempted robbery of an armored car operating in and around Houston, announced U.S. Attorney Kenneth Magidson. Co-defendant Effron Williams, 22, of Houston, was previously convicted and was ordered to prison yesterday as a result of his guilty plea.
U.S. District Judge Keith Ellison ordered Williams to serve a total of 130 months for his convictions of conspiracy and interference with commerce by robbery and discharging of a firearm during the commission of a crime of violence.
Garda Cash Logistics., who operated the truck during the robbery attempt, maintains offices throughout the United States and was engaged in the business of secured armored transport of United States currency in interstate commerce and in picking up and delivering United States currency to financial institutions and check cashing businesses, both of which are industries which affect interstate commerce.
Watson and Williams were charged along with Christopher Brandon Pietrie, 19, also of Houston, for their involvement in the March 10, 2013, attempted robbery of a Garda Cash Logistics armored truck at the Chase Bank located at 10411 North Freeway in Houston. Watson drove to the location, while Williams and Pietrie got out of the car and approached the armored car guard who was in the process of filling an ATM machine. The guards and the defendants exchanged gunfire, but no one was injured and no money was obtained.
Pietrie also previously pleaded guilty and is set for sentencing July 29, 2015. Watson will be sentenced July 1, 2015. Both face up to 20 years in prison as well as a possible $250,000 fine for their convictions of conspiracy to interfere with commerce by robbery.
The case was investigated by the FBI’s Bank Robbery Task Force, which includes the Harris County Sherriff’s Office and Houston Police Department. Assistant U.S. Attorney Jennie Basile is prosecuting the case.Postal Worker Convicted in Massive Stolen Identity Tax Refund Fraud SchemeRead the Press Release
HOUSTON – The final person has been convicted in an eight-defendant conspiracy in which fraudulent tax returns were filed using identification information that was stolen and used without lawful authority, announced U.S. Attorney Kenneth Magidson. Edward Dwayne Vallier, 42, of Houston, entered his guilty plea to wire fraud and conspiracy to commit mail fraud this morning.
According to court records, Vallier was a U.S. Postal Service carrier in Houston that was recruited by co-conspirator Jalan Willingham, 35, of Houston, in October 2012, in order to aid and abet the conspirators in carrying out their scheme. Vallier was to provide fictitious addresses on his postal route where the false returns would be mailed. The tax refunds generated by the fraudulent returns were often deposited onto reloadable debit cards and mailed to addresses under Vallier’s control. He would then retrieve the debit cards with the fraudulent returns on them from his route and turn it over to the co-conspirators.
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 over $6 million before the scheme was discovered.
Willingham previously pleaded guilty for his role in the scheme as did Travis White, 32, also of Houston; Kerry Lionel Ruffin, 32, Calvin Shelton, 39, and Shawn Phillip Thornton, 37, all of Atlanta, Ga.; and Tangela R Jackson-Lezeau, 36, of Port Saint Lucie, Fla. The case against the eighth defendant - Dwayne Biggs, 29, of Atlanta, Ga. - was transferred to another jurisdiction for final adjudication.
The matter was investigated by the U.S. Postal Inspection Service and Internal Revenue Service - Criminal Investigation. Assistant U.S. Attorney Suzanne Elmilady is prosecuting the case
United States District Judge Keith P. Ellison, who accepted the plea today, has set sentencing for July 1, 2015. At that time, Vallier faces up to 20 years in federal prison and a maximum $250,000 fine. The remaining defendants will also be sentenced on that date.Corpus Christi Man Convicted of Possessing Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – Winfred Eric Clanton, 68, of Corpus Christi, has pleaded guilty to possessing child pornography, announced U.S. Attorney Kenneth Magidson.
The investigation began when Corpus Christi Police received a cyber-tip from the National Center for Missing and Exploited Children (NCMEC) about an email address associated with child pornography. According to the tip, America Online (AOL) contacted NCMEC and advised them that AOL had discovered emails containing child pornography. Investigators determined Clanton was the Internet service subscriber associated with the email address.
In November 2013, investigators obtained and executed a search warrant at Clanton’s residence, at which time they seized various electronic devices which forensic analysis later revealed 115 images of child pornography depicting prepubescent girls unclothed and posing in a sexually explicit manner. Clanton provided a statement to law enforcement admitting to having accessed the child pornography and having a sexual interest in children.
U.S. Magistrate Judge Jason B. Libby accepted the guilty plea today and sentencing is set for July 16, 2015, before U.S. District Judge Nelva Gonzales Ramos. Clanton faces up to 10 years imprisonment and a $250,000 maximum fine as well as the possibility of up to life on supervised release during which the court can impose a number of special conditions designed to protect children and prohibit the use of the Internet.
Clanton was permitted to remain on bond pending sentencing.
Corpus Christi Police Department – Internet Crimes Against Children Task Force and the FBI investigated the case.
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."
Local Businessman Handed Maximum Sentence for Transporting A Female Employee for Criminal Sexual ConductRead the Press Release
HOUSTON - Henri De Sola Morris, 68, former president and chief executive officer of Solid Software Solutions LLC, which does business as Edible Software Inc., has been sentenced in federal court, announced U.S. Attorney Kenneth Magidson. Morris had just began trial in early December 2014 when he elected to enter a guilty plea to transportation.
Today, U.S. District Judge Melinda Harmon handed Morris the maximum sentence of 120 months in federal prison. Following completion of his prison term, he will also be on supervised release for the rest of his life. At the hearing, Morris read a statement to the court. After listening to the defendant, Judge Harmon noted that she did not believe he had accepted responsibility for his actions.
A letter prepared by the victim in the case was also read in court. In it, she talked about the pain Morris has caused. She stated that she did not expect him to feel sorry for what he did, noting that she did not think he had the capacity for that, but hoped he would eventually take some accountability for his actions. “It is my hope that the other women will see today as a win for all of us,” she said. “Because of their courage and tenacity the public is safe from you. God knows the things you have done and he will be your ultimate judge. I will walk away today free of you and your evil, because I know I am strong enough to continue to fight for the truth.”
Morris, a naturalized U.S. citizen residing in Houston, admitted that on or about May 8, 2011, he traveled in interstate commerce and committed, and attempted to commit, the drug-facilitated sexual assault of a female employee.
According to opening statements presented by the prosecution at trial, several women relayed similar experiences of being in compromising situations with Morris after he provided each woman with a drugged alcoholic beverage he had prepared. Each woman reported instances of memory loss that followed the encounter consistent with being administered drugs. The women also reported unwanted contact with Morris, according to the opening remarks. The women all worked for Morris at one time and had taken business trips with him at his request to various states, including New York, New Jersey and Pennsylvania. Some of those women were also present in court today.
The plea agreement indicates that on one of those trips, Morris gave a female employee an alcoholic drink which he had drugged with Ambien. She recalled the drink being extremely strong and soon feeling inexplicitly “very intoxicated.” The victim recalled having their picture taken in a restaurant, but then nothing until awakening the next morning on her bed in her hotel room. At that time, she saw Morris standing over her naked body and taking pictures with his cell phone. She also had scratches on each of her hips and bruises on her arm. During a later conversation with the victim, Morris admitted he was “lonely.”
The photos Morris had taken of the woman were later recovered on a thumb drive found in his possession during the execution of a search warrant at Bush Intercontinental Airport (IAH) on Feb. 27, 2012. Also discovered at that time were three Jack Daniel’s bottles containing a clear liquid inconsistent with the appearance of whiskey. The search also resulted in the discovery of drugs, some of which were later identified as benzodiazipams, that a toxicologist has indicated can cause physical impairment and memory loss especially when mixed with alcohol as well as several tablets of the erectile dysfunction drugs commercially-known as Viagra and Cialis.
The Society of Forensic Toxicologists (SFT) defines drug-facilitated sexual assault (DFSA) as “when a person is subjected to nonconsensual sexual acts while they are incapacitated or unconscious due to the effect(s) of ethanol, a drug and/or other intoxicating substance and are therefore prevented from resisting and/or unable to consent.” Typical symptoms of DFSA are drowsiness, dizziness, loss of muscle control, slurred speech, decreased inhibitions, memory loss or impairment, loss of consciousness and vomiting. The SFT compiled a list of drugs, in addition to ethanol, as known to have been associated with DFSA. The drugs found on Morris at IAH are all on that list.
Morris, who was previously on bond but later detained after violating his conditions of release, 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 the FBI – Houston Division Violent Crime Task Force, comprised of agents and officers from the FBI, Houston Police Department and the Harris County Sheriff’s Office, with the assistance of the Drug Enforcement Administration laboratory in Dallas and the FBI laboratory in Quantico, Va. Assistant U.S. Attorneys Sherri Zack and Suzanne Elmilady are prosecuting the case.
Another Charged and Arrested in Sex Trafficking of Minors ConspiracyRead the Press Release
HOUSTON – The final man in a six-defendant sex trafficking and alien harboring conspiracy has been arrested and will make his initial appearance in federal court, announced U.S. Attorney Kenneth Magidson.
Walter Alexander Ejcalon Xalcut aka Chapin, 27, an illegal alien from Guatemala, was arrested last night in Houston. He is set make his initial appearance before U.S. Magistrate Judge Frances Stacy at 2:00 p.m. today.
Xalcut is charged along with Hugo Alexander Melendez-Gonzalez aka El Gordo, 37, Jose William Quintanilla aka Pablo or Ronko, 40, Franciso Guerra Yvinni Pleitez aka Colochin or Flaco, 33, Adelio De Jesus Batres aka Muneco, 52, and Mariano Quintanilla-Campos, 33, all of El Salvador. Xalcut’s co-conspirators had been previously arrested and remain in custody.
The indictment alleges the defendants were engaged in a conspiracy to commit sex trafficking of a minor by force and coercion, sex trafficking of a minor as well as an alien harboring and transporting conspiracy.
The indictment alleges that from late 2010 to the present, all defendants conspired to cause a person less than 18 years of age to engage in a commercial sex act and did, in fact, cause two minor victims to engage in a commercial sex act. The defendants allegedly instructed minor undocumented victims and young women how to solicit and charge for commercial sex acts and collected the fees that were paid.
The indictment further alleges the four engaged in a conspiracy to harbor and conceal illegal aliens in Houston.
The case was investigated by the FBI, Harris County Sheriff’s Office, Houston Police Department, Homeland Security Investigations and Texas Department of Public Safety. Assistant U.S. Attorney Doug Davis is prosecuting.Houston Men Get Significant Sentences for Bank RobberiesRead the Press Release
HOUSTON – Earnest Elonzo Hamilton, 46, and Kevin Joseph Riggs, 44, both of Houston, have been ordered to federal prison following their convictions related to the aggravated robbery of two area Wells Fargo banks, announced United States Attorney Kenneth Magidson.Both men entered guilty pleas to two counts of aggravated bank robbery and one count of brandishing a firearm during a crime of violence on Aug. 12, 2014.
Today, U.S. Circuit Judge Gregg Costa, sitting by designation, handed Hamilton a sentence of 96 months for the aggravated bank robberies which will be served consecutively to another 10 years for brandishing a firearm during commission of the crimes. He was further ordered to serve an additional 24 months for a supervised release violation from a prior bank robbery, resulting in a total sentence of 20 years in federal prison. Riggs was ordered to serve a 97-month-term for the aggravated bank robberies as well as another seven years for brandishing a firearm to be served consecutively resulting in a total 181 months of federal imprisonment. They must also serve five years of supervised release following completion of their prison terms. At the hearing, the court noted that although both were convicted in the two robberies, they were actually held accountable for a total 17 robberies in the Houston area and were ordered to pay restitution as part of their sentence.
Riggs and Hamilton were arrested following the July 25, 2013, robbery of the Wells Fargo at 1681 W FM 646 in League City. They also plead guilty to robbing the Wells Fargo Bank at 2202 FM 2920 in Spring on Feb. 13, 2013. Employees at each of the banks described being threatened at gun point and ordered to comply with the robbers’ demands.
Following the July 25, 2013, robbery, witnesses in the bank reported seeing the robbers leave in a red minivan and gave descriptions of them and their clothing. A responding officer located the minivan and began pursuit. Soon after, the two suspects abandoned the vehicle while it was rolling to a stop and fled on foot. Hamilton was seen dropping one gun while he got out of the vehicle as well as a second pistol, black ski mask and money near a gutter. The sweatshirt and gloves worn by Riggs was also recovered in a backyard nearby. Authorities captured Riggs as he attempted to leave a subdivision on foot, while Hamilton was found hiding in some bushes.
Officers discovered that the minivan and one of the pistols were stolen.
The investigation was conducted by the FBI Bank Robbery Task Force, which is comprised of personnel from the FBI, Houston Police Department and Harris County Sheriff's Office in conjunction with the League City Police Department. Assistant U.S. Attorney Jennie Basile is prosecuting the case.
Father and Son Plead Guilty in Massive Marijuana Grow Field CaseRead the Press Release
BROWNSVILLE, Texas – Miguel Echevarria-Zuniga, 52, and Miguel Echevarria-Guizar, 22, have entered guilty pleas to manufacturing marijuana, announced U.S. Attorney Kenneth Magidson along with Deputy Special Agent in Charge Mark Dawson of Homeland Security Investigations (HSI).
The charges stem from an August 2014 investigation by HSI which revealed that part of a 40-acre tract of land in a rural area of Willacy County was being used to grow marijuana. Agents discovered more than 9,000 marijuana plants growing in the field.
Agents arrested the Echevarrias, both Mexican citizens, as they attempted to abscond from the area. Fingerprint analysis linked both defendants to items found in the marijuana field. Agents also searched a storage shed which was rented by Echevarria-Zuniga and found sales receipts for items found in the marijuana field.
“Regardless of their role in a drug trafficking organization, this type of criminal activity will not be tolerated,” said Dawson. “HSI will continue to utilize its broad authorities to dismantle criminal organizations who blatantly ignore the laws of this nation.
U.S. District Andrew S. Hanen accepted the pleas today and has set sentencing for July 6, 2015. At that time, they each face a mandatory minimum of 10 years and up to life in federal prison as well as a $10 million fine. Echevarria-Zuniga also pleaded guilty to being an alien found in the United States after having been deported. He faces a maximum of 20 years imprisonment as well as a $250,000 fine for that conviction.
This case was investigated by HSI and prosecuted by Assistant U.S. Attorneys Israel Cano III and David A. Coronado.
Conroe Family Guilty of Disability FraudRead the Press Release
HOUSTON - Ali Irsan, 58, has been convicted of conspiracy to defraud the United States, announced U.S. Attorney Kenneth Magidson. Irsan’s wife - Shmou Ali Alrawabdeh, 38 - and daughter - Nadia Irsan, 31 - have also been convicted by previously entering guilty pleas to making false statements in association with the fraud scheme.
Ali Irsan is a naturalized U.S. Citizen from Jordan and a resident of Conroe. He and members of his family received Supplemental Security Income (SSI), which is needs-based benefit provided by the Social Security Administration (SSA). SSI pays monthly benefits to the disabled, who DO NOT have resources. An individual with resources, excluding a home and a car, is ineligible for SSI.
On or about Sept. 4, 2002, Ali Irsan applied for SSI benefits claiming he had been disabled and unable to work since 1990. However, Irsan failed to report that he maintained a bank account in Jordan with a balance that fluctuated from approximately $4,000 to $16,000. Also, in January 2010, Ali Irsan received a settlement check for $75,000, which he failed to report to the SSA. Shmou and Nadia Irsan falsified documents in order to aid the fraud scheme involving the disability benefits.
The three family members will remain in custody pending their sentencing hearing, which is set for June 2015. At that time each face up to five years in federal prison and a possible $250,000 maximum fine.
The investigation leading to the charges was led by SSA - Office of Inspector General with the assistance of FBI, Houston Police Department and sheriff’s offices in Harris and Montgomery Counties among others. Assistant U.S. Attorney Jim McAlister is prosecuting the case.
California Technology Company Enters into Non-Prosecution Agreement with U.S.Read the Press Release
HOUSTON – The U.S. Attorney’s Office for the Southern District of Texas (USAO-SDTX) has entered into a Non-Prosecution Agreement (NPA) with Curvature LLC, a California-based technology company, announced U.S. Attorney Kenneth Magidson. As part of the NPA, Curvature has agreed to pay a fine of $2.2 million, enter into a statement of facts, appoint a compliance officer to oversee its procurement activities and continue to enhance its compliance and ethics program.
According to the statement of facts, from approximately 2007 through 2010, Curvature resold new and used computer equipment under the name Network Hardware Resale Inc. (NHR). NHR advertised itself as the largest stocking provider of new and used surplus equipment made by Cisco Systems Inc. (Cisco), another technology company that produced and sold computer equipment including switches and routers.
Cisco sold its products directly to its customers and to its authorized resellers, also known as “Channel Partners,” and in certain limited circumstances, sold products at large discounts pursuant to an agreement known as a Direct Service Agreement (DSA). Under a DSA, the customer or partner was required to provide Cisco with information about the intended use of the products.
As early as 2007, NHR and certain NHR employees knew that Cisco did not condone, and in fact investigated, the sales of Cisco products at DSA prices to users who planned to resell the product and not use it internally. NHR did not, at any time, make any misrepresentations directly to Cisco. However, NHR employees were aware that at least one NHR vendor was submitting purchase orders to Cisco that did not accurately identify the ultimate purchaser of the products and whether the products would be used internally.
In April through December 2010, NHR purchased Cisco products from another company (identified as Company B), which was misrepresenting to Cisco how the products would be used. As a result of these misrepresentations, NHR and Company B obtained substantial discounts on the Cisco products. Company B obtained the products in excess of 86% off list price and then resold many of the products to NHR at approximately 71% off the list price.
Curvature also agreed that in August 2010, after Cisco began investigating the sale of certain products to Company B, Company B offered to provide a sampling of the products back to Cisco to show that they were not being resold. At Company B’s request, NHR shipped some of the products in NHR’s inventory back to Company B so that Company B could provide the products to Cisco in an attempt to demonstrate to Cisco that the products had not been resold.
Under the terms of the NPA, Curvature admitted responsibility for its conduct and agreed to institute remedial measures to prevent any future instances of such conduct, continue to cooperate in the investigation and enhance its compliance and internal controls. In exchange, the USAO-SDTX has agreed that, except for federal criminal tax violations, it will not criminally prosecute Curvature for any of the conduct described in the statement of facts.
The case was investigated by the U.S. Secret Service and the FBI. Assistant U.S. Attorneys Jason Varnado and John Pearson handled the case.
Mexican National Charged with KidnappingRead the Press Release
McALLEN, Texas ‐ Martin Margarito-Casimiro, 28, of Camargo, Tamaulipas, Mexico, has been charged with conspiracy to commit kidnapping, kidnapping and being an alien in possession of firearms, announced U.S. Attorney Kenneth Magidson.
Margarito-Casimiro was originally charged in February 2015 on the firearms charge and was remanded to custody pending further criminal proceedings. A federal grand jury in McAllen returned the superceding indictment adding the conspiracy and kidnapping allegations today. He is expected to make his initial appearance before a U.S. magistrate judge on these charges in the near future, at which time the government will again request his continued detention.
The indictment alleges that from Jan. 20 - 22, 2015, Margarito-Casimiro held two individuals against their will in a residence in McAllen. The victims were allegedly bound and forced to call family members and arrange payment for their release.
If convicted of these charges, Margarito-Casimiro could face up to life in prison.
The investigation leading to the charges was conducted by Homeland Security Investigations and McAllen Police Department. Assistant U.S. Attorney Kristen Rees and Leo J. Leo 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.Panamanian Woman Heads to Prison for Illegal Re-entry into the United StatesRead the Press Release
LAREDO, Texas – Alicia Larrier, 47, has been ordered to prison for more than eight years following her conviction of illegal re-entry, announced United States Attorney Kenneth Magidson. A Laredo jury convicted the Panamanian citizen on Nov. 17, 2014, after less than a day of trial and approximately one hour of deliberations.
Today, U.S. District Judge Marina Garcia Marmolejo, who presided over the trial, handed Larrier the 97-month sentence. At the hearing, Judge Marmolejo ruled Larrier obstructed justice and lied at trial. Additionally, the United States articulated that Larrier had an extensive criminal history, inclusive of aggravated robbery with a gun and practicing dentistry without a license. She is expected to face deportation proceedings following his release from prison.
U.S. Border Patrol (BP) agents apprehended Larrier on March 18, 2014, as part of a group of nine individuals in the Hernandez Ranch near Laredo. Upon investigation, agents determined she was an illegal alien - previously ordered deported in 1993 after multiple convictions for armed robbery, forgery, grand theft and practicing dentistry without a license. She had been sentenced to more than 15 years imprisonment and ultimately deported early to the country of Panama in October 2002.
At trial, the government presented testimony from BP processing and arresting agents, as well as representative of the Department of Homeland Security. Larrier testified, but gave multiple versions of stories on the witness stand to include the claim that she had been drugged, kidnapped and smuggled into the United States against her will.
The jury ultimately did not believe her story and found her guilty as charged.
She 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 BP and U.S. Citizenship and Immigration Services. Assistant U.S. Attorneys Sanjeev Bhasker and Adam Goldman prosecuted this case.
Humble Woman Pleads Guilty in Second Fraud SchemeRead the Press Release
HOUSTON - Cheryl Reed Johnson aka Shawnee Reed and Cheryl Reed, 37, of Humble, has been convicted of engaging in a conspiracy to commit bank, mail and wire fraud as well as making false statements to a bank and wire fraud, announced U.S. Attorney Kenneth Magidson.
From approximately January 2005 through February 2014, Johnson illegally used various Social Security numbers not assigned to her by the Commissioner of Social Security. She would use those numbers in order to obtain loans from banks and other lending institutions to purchase houses and vehicles.
Johnson was also previously convicted in a second conspiracy related to tax fraud, including conspiracy to commit mail and wire fraud, conspiracy to make false claims to the Internal Revenue Service (IRS) and making a false claim to the IRS. In this scheme, Johnson and others claimed more than $2.2 million in false first time home buyer credits on 2008 returns they filed with the IRS. The fraudulent claims resulted in Johnson and her co-conspirators claiming more than $2.3 million in fraudulent refunds.
Johnson will be sentenced in both cases by U.S. District Judge Gray Miller on Aug. 7, 2015.
For the convictions today, she faces up to 30 years and a possible $1 million fine for conspiracy to commit bank, mail and wire fraud as well as the false statements conviction. For wire fraud, she also faces a possible maximum term of 20 years imprisonment and a possible $250,000 fine. In the second case, she will also face up to 20 years for the conspiracy to commit mail and wire fraud, another possible 10 years for the conspiracy to make false claims and up to five years for making the false claims.
She will remain in custody pending that hearing.
Both cases are the result of investigations conducted by the U.S. Postal Inspection Service and IRS - Criminal Investigation. Assistant U.S. Attorney Melissa Annis is prosecuting the cases.
Former Executive Sentenced to Federal Prison for Defrauding Health Care CompanyRead the Press Release
HOUSTON – Joseph S. Antonucci, 42, has been ordered to prison following his convictions on 15 counts of wire fraud, five counts of money laundering and one count of making a false statement to law enforcement agents, announced U.S. Attorney Kenneth Magidson. Antonucci’s scheme defrauded his former employer, Patriot Managed Health Care Systems Inc., and caused a significant monetary loss. The Houston resident pleaded guilty to defrauding his former employer on Oct. 23, 2014.
Today, U.S. District Judge Keith P. Ellison, who accepted the guilty plea, handed Antonucci a total sentence of 60 months in federal prison to be immediately followed by three years of supervised release. He was further ordered to pay $2.9 million in restitution.
Antonucci was employed by Patriot as executive vice president and treasurer at the company’s Houston headquarters. In this position, Antonucci ran the daily operations of the company, including soliciting and retaining clients, supervising other employees and controlling the company’s bank accounts.
The indictment charged Antonucci with defrauding Patriot by embezzling approximately $2.9 million from the company’s bank accounts from at least January 2007 through September 2012. At the time of his guilty plea, Antonucci admitted he made unauthorized withdrawals and transfers from Patriot’s bank accounts using a corporate debit card and wrote checks from these accounts to himself. Antonucci further caused Patriot’s account to transfer money by wire into both his own accounts and the accounts of third parties who provided services to Antonucci personally.
Antonucci executed the scheme by creating false financial documents which misrepresented key accounting figures for the company and overstated the company's net worth while concealing Antonucci's embezzlement. He sent these false documents via email to the managing partner of the investment fund that owned Patriot.
As part of his plea, Antonucci admitted he used emails to request additional capital investment from the managing partner, falsely claiming the funds were needed for legitimate business operations and concealing that the company actually needed money because of his own embezzlement.
Antonucci pleaded guilty to 15 counts of wire fraud based on these emails and personal expenses he paid (with Patriot’s money) for his American Express bill, gambling at the Palms Casino in Las Vegas and private jet travel. He further admitted to five counts of engaging in a monetary transactions with the proceeds of specified unlawful activity based on his use of Patriot funds to pay for additional personal expenses, including repayment of an Internal Revenue Service lien and a down payment on his home. He also admitted to making false a statement to FBI agents when they interviewed him in February 2013.
Antonucci 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 case was investigated by the FBI and prosecuted by Assistant U.S. Attorney John Pearson.
Mexican National Gets 14 Years for Trafficking Methamphetamine, Cocaine and HeroinRead the Press Release
McALLEN, Texas – Cesar Eloy Munoz-Silva, of Nuevo Leon, Mexico, has been sentenced to 168 months imprisonment for importing methamphetamine, cocaine and heroin into the United States from Mexico, announced U.S. Attorney Kenneth Magidson.
At the time of his guilty plea, he admitted that on March 8, 2014, he had driven a vehicle from Mexico into the United States through the Anzalduas, Texas, port of entry, knowing the vehicle contained a controlled substance. Upon inspection, Customs and Border Protection (CBP) officers discovered several controlled substances hidden within the front and rear seats of the vehicle. In all, agents seized 18 bricks of methamphetamine weighing approximately 29 kilograms, nine bricks of cocaine weighing approximately 10 kilograms and five bricks of heroin weighing approximately four kilograms.
At the time of his arrest, Munoz admitted to having transported narcotics to Houston on nine or 10 previous occasions. U.S. District Judge Randy Crane took that into account upon imposition of the sentence today.
Munoz has been in custody without bond since his arrest in March 2014, where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The case was investigated by Homeland Security Investigations and CBP. Assistant U.S. Attorney Linda Requénez prosecuted the case.
Local Business Owner Indicted for Defrauding Exxon Mobil of More Than $5 MillionRead the Press Release
HOUSTON – R. Scott Jordan, 52, of Houston, has surrendered to authorities following the return of an indictment alleging he defrauded Exxon Mobil and caused a loss of more than $5 million, announced United States Attorney Kenneth Magidson.
The indictment was returned under seal March 23, 2015, and unsealed today as he made his initial appearance before U.S. Magistrate Judge Mary Milloy.
As outlined in the indictment, Jordan owned and operated a company called One Source Industrial, which operated in the Houston area providing welding services. Exxon’s Baytown Olefins Plant (BOP) was One Source Industrial’s primary client. The indictment alleges that from 2004 through 2010, Jordan conspired with Garry W. Arnold, 63, of Dayton, who was employed by Exxon Mobil, to deprive Exxon Mobil of both its money and property and its right to Arnold’s honest services. The indictment also alleges four substantive counts of mail fraud.
According to the indictment, Arnold’s job responsibilities included overseeing the maintenance and repair of numerous large furnaces located at the plant, including ordering replacement parts and coordinating the purchase, delivery and installation of these parts. Arnold also allegedly controlled and was part owner of Metal Blinds Unlimited Inc. The indictment alleges that during the relevant time period, Metal Blinds had minimal legitimate business operations, had no employees other than Jordan and operated out of his residence.
Beginning in approximately January 2004 and continuing through October 2010, Jordan and Arnold allegedly carried out a fraudulent invoicing scheme which caused Exxon to pay at least approximately $5.5 million for furnace parts and fabrication services that were never provided, were provided with materials already owned by Exxon or for which they paid an excessive amount. The indictment alleges Jordan and Arnold shared the proceeds of the scheme by having Exxon send the payment checks to One Source Industrial, after which Jordan caused that company to make payments to a sham corporation owned by Arnold. According to the indictment, Jordan also made payments to Arnold for legitimate work done by One Source Industrial for Exxon and other clients, again by making regular payments by check to Metal Blinds.
In total, Jordan and Arnold allegedly caused Exxon to create approximately 78 purchase orders and pay at least $5.5 million to One Source Industrial for work purportedly done by Metal Blinds. The indictment alleges Arnold received at least $3.2 million in association with these invoices through his sham corporation. Jordan also allegedly paid more than $300,000 to Arnold as part of the concealed profit-sharing agreement.
A conviction for conspiracy to commit mail fraud or substantive mail fraud carries as possible punishment a maximum penalty of 20 years in federal prison and a $250,000 maximum fine or twice the pecuniary gain or loss.
Arnold has already pleaded to his role in the scheme was sentenced to 63 months in federal prison to be followed by three years of supervised release.
The case is being investigated by the U.S. Postal Inspection Service and prosecuted by Assistant U.S. Attorney John Pearson.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Six Charged in Scheme to Commit Marriage FraudRead the Press Release
HOUSTON – A total of six Houston residents have been charged in a nine-count indictment alleging their involvement in a marriage fraud scheme involving Nigerian nationals, announced U.S. Attorney Kenneth Magidson along with Brian M. Moskowitz, special agent in charge of Homeland Security Investigations (HSI) in Houston.
The indictment was returned under seal Feb. 26, 2015, and unsealed today as Shakietha Ann Joseph, 39, Nathan Michael, 36, Trevor Ray Frenney, 39, and Hauwa Bello, 37, all of Houston, made their initial appearances in federal court. At that time, U.S. Magistrate Judge Mary Milloy ordered they be detained pending further criminal proceedings.
Anthony Andrews 27, also of Houston – is in state custody on unrelated charges and is expected to make his appearance in federal court in the near future.
A final defendant - Anisha Nicole Gable, 33 – is considered a fugitive and a warrant remains outstanding for her arrest. Anyone with information about her whereabouts is asked to contact HSI at 281-985-0500.
The six defendants allegedly conspired together in connection with a marriage fraud ring involving arranged “sham” marriages between recruited U.S. citizens and Nigerian nationals. A “sham” marriage is a marriage that is entered into for the primary purpose of circumventing the immigration laws.
“Becoming an American citizen is an honor and a privilege,” said Moskowitz. “Obtaining citizenship through fraud is an affront to every person who has played by the rules and it threatens the integrity of our legal immigration system. HSI special agents will continue to work with our partners to ensure that those who use criminal and dishonorable means to achieve the most honorable of goals are brought to justice.”
The indictment alleges conspirators would pay U.S. citizens for entering into fraudulent marriages to Nigerian nationals who had originally entered the country on tourist visas. The conspirators would then complete immigration documents and submit them to Citizenship and Immigration Services (CIS) to obtain legal permanent resident status, according to the indictment. As part of the conspiracy, the indictment further alleges they would take staged photographs of themselves as a couple for documentation of an allegedly meaningful relationship. The conspirators also allegedly coached the recruits and/or the Nigerian nationals on what to say when questioned or interviewed by law enforcement or immigration officials about the legitimate nature of the marriages.
The indictment charges all six with conspiracy commit marriage fraud. Gable is also charged with four counts of aiding and abetting marriage fraud, while Joseph and Frenney are each charged with two counts of the same allegation. Michael and Bello were also indicted on one count of committing marriage fraud.
Gable allegedly recruited Andrews, Frenney and Joseph to marry Nigerian nationals. The indictment further alleges Bello did knowingly marry Frenney, a U.S. citizen for the for the purpose of evading any provision of the immigration laws of the United States. Similarly, Michael allegedly entered into a sham marriage with Joseph, according to the allegations. At the time of their respective marriages, Bello and Michael were natives and citizens of Nigeria and were in the U.S. temporarily on B1/B2 non-immigrant visas.
If convicted on any of the counts as charged, each defendant faces up to five years in federal prison and a possible $250,000 fine.
The charges are the result of an investigation by HSI, Department of Homeland Security (DHS) - Document and Benefit Fraud Task Force, Office of Fraud Detection, CIS and the Department of Agriculture - Office of the Inspector General. Special Assistant U.S. Attorneys Rick Bennett and Mark Evans are prosecuting the case.
All defendants are presumed innocent unless convicted through due process of law.Woman Sentenced for Preparing False Income Tax ReturnRead the Press Release
HOUSTON – Nina Thompson aka Nina Thompson Price has been ordered to federal prison following her conviction of willfully aiding and assisting in the preparation and presentation of a false U.S. Individual Income Tax Return, announced U.S. Attorney Kenneth Magidson and Special Agent in Charge Lucy Cruz of Internal Revenue Service – Criminal Investigation (IRS-CI). Thompson pleaded guilty Dec. 29, 2014.
Today, U.S. District Judge David Hittner, who accepted the guilty plea, handed Thompson a 24-month sentence to be immediately followed by one year of supervised release. She was further ordered to pay $226,884 in restitution to the IRS.
According to the plea agreement filed in the record of the case, Thompson was in the business of preparing income tax returns and operated under the name N.M. & T. Tax Service located on Bellaire Boulevard in Houston. Thompson admitted she willfully placed numerous false items on her clients’ income tax returns in an attempt to lower their income tax liabilities.
The return she prepared that formed the basis of the charges against her resulted in a tax loss to the United States of $7,428. As part of her plea, she admitted that as a result of her actions, the total relevant conduct for sentencing purposes is $226,884. She has agreed to pay that amount in restitution to the IRS.
Previously released on bond, Thompson was taken into custody following the sentencing today where she will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.IRS-CI investigated. Assistant U.S. Attorney Charles J. Escher is prosecuting the case.
Supreme Court Denies Petition in Animal Crush Video Case – Case Returns to Houston Federal CourtRead the Press Release
HOUSTON – The U.S. Supreme Court has denied a petition for a writ of certiorari in the case involving a Texas couple who allegedly created and distributed “animal crush videos,” announced U.S. Attorney Kenneth Magidson. The case will now again be set for trial in federal court in Houston.
A federal grand jury returned an indictment Nov. 28, 2012, against Ashley Nicole Richards, 24, and Brent Justice, 53, both of Houston. They were charged with multiple counts of creating animal crush videos and distribution of those videos among other charges.
A U.S. district judge later dismissed the crush video charges, citing constitutionality issues. The government appealed that decision to the 5th Circuit Court of Appeals in New Orleans which subsequently overturned the decision of the District Court. The defendants then filed a petition for a writ of certiorari to the U.S. Supreme Court challenging the 5th Circuit’s ruling. The U.S. Supreme Court has denied that petition and the case is remanded back to the District Court for prosecution. A new trial date has not yet been set.
The indictment alleges Richards and Justice created and distributed animal crush videos which were obscene in nature. The charges mention eight videos which allegedly involve puppies, chickens and kittens being tortured and killed. The indictment alleges the videos were created at varying times between February 2010 and August 2012.
The term "animal crush video" is defined under federal law as any photograph, motion-picture film, video or digital recording, or electronic image that depicts actual conduct in which one or more living non-human mammals, birds, reptiles or amphibians is intentionally crushed, burned, drowned, suffocated, impaled or otherwise subjected to serious bodily injury, and is obscene.
This is the first known case to be indicted in federal court since the statute was amended in 2010.
If convicted of these charges, Richards and Justice face up to seven years in federal prison on each count. They also face a possible $250,000 fine and at least three years of supervised release following completion of any prison term imposed.
Both have remained in state custody on related animal cruelty charges following their arrests on Aug. 15, 2012.
Oral arguments are available online. The arguments presented in this case before the 5th Circuit Court of Appeals on March 11, 2014, can be heard at http://www.ca5.uscourts.gov/OralArgRecordings/13/_13-20265_3-11-2014.MP3
This case was originally investigated by the Houston Police Department who is working in conjunction with the Houston office of the FBI. The case is being prosecuted by Assistant U.S. Attorney Sherri L. Zack. Trial Attorney John Pellettieri of the Department of Justice’s Criminal Division handled the appeal.
A defendant is presumed innocent unless convicted through due process of law.Laredo Jury Convicts Bus Passenger of Heroin SmugglingRead the Press Release
LAREDO, Texas – Altagracia Guadalupe Vargas, 28, of Laredo, has been convicted of conspiracy and possession with the intent to distribute Heroin, announced U.S. Attorney Kenneth Magidson. The jury returned its verdict following a three-day trial and approximately one hour deliberation.
The jury heard that one Dec. 12, 2014, Vargas conspired to smuggle approximately 3.5 kilograms of heroin through the U.S. Border Patrol (BP) checkpoint Interstate 35. Vargas was a passenger on a Turimex bus and attempted to smuggle the black-tar heroin in the inner linings of two carry-on bags. Vargas was questioned and gave multiple inconsistent statements.
At trial, the government presented testimony from law enforcement and other experts who explained the discovery of the heroin and its value of more than $100,000.
Vargas testified in her defense and claimed no knowledge of the drugs and that she believed the bags contained computer tools that were concealed to prevent theft. She said the bags belonged to a man named “Don Tono,” which contradicted her earlier statement that the bag belonged to her sister. Vargas also testified she received $50 from Don Tono for this trip. However, the government demonstrated that she had actually paid $75 of her own money for the bus ticket, which would have resulted in a $25 loss.
U.S. District Judge Diana Saldana presided over trial. Sentencing will be scheduled at a later date, at which time Vargas faces minimum of 10 years and up to life in federal as well as a possible $10 million fine.
The charges are the result of an investigation by Border Patrol, Drug Enforcement Administration and Customs and Border Protection. Assistant U.S. Attorneys Alfredo De La Rosa and Sanjeev Bhasker prosecuted the case.
Two Local Marijuana Traffickers Sentenced to PrisonRead the Press Release
McALLEN, Texas – Two McAllen men have received significant sentences for conspiring to possess with the intent to distribute marijuana and conspiring to launder the drug proceeds, announced U.S. Attorney Kenneth Magidson. Alberto Alaniz, 51, and Jose Ramon Romo, 30, pleaded guilty to the charges May 29, 2014.
Today, U.S. District Judge Randy Crane ordered Alaniz to serve 262 months in federal prison, while Romo received a sentence of
120 months. Alaniz will also serve 10 years of supervised release following completion of the prison term, while Romo will serve a five-year-term.The investigation revealed that from 2008 through 2013, Alaniz and Romo 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 1,799 kilograms on June 16, 2011, and 442 kilograms on Feb. 10, 2012. In addition, agents seized hundreds of thousands of dollars in currency from both defendants as part of the investigation.
Alaniz was taken into custody, while Romo was permitted to voluntarily surrender to authorities at a later date.
The investigation leading to the charges was conducted by the Drug Enforcement Administration and Internal Revenue Service - Criminal Investigation. Assistant U.S. Attorney James Sturgis prosecuted the case.
Employee Charged with Defrauding Memorial Herman Hospital System of Nearly $10 Million in False Invoicing SchemeRead the Press Release
HOUSTON – Kenneth Joseph Wild II, 49, of Katy, has been arrested for allegedly defrauding his employer, Memorial Herman Health Systems (MHHS), of nearly $10 million over a 14-year period, announced United States Attorney Kenneth Magidson.
Wild is expected to make his initial appearance before U.S. Magistrate Judge Mary Milloy at 10 a.m. today, at which time the government is expected to request he be detained pending further criminal proceedings.
The complaint alleges that on or about Feb. 23, 2001, Wild was appointed the manager of Printing and Mail Services, a division within MHHS which outsources the creation of all informational and promotional materials disseminated by MHHS. In this role, Wild had the responsibility for approving invoices submitted for printing services utilized by MHHS and for forwarding those invoices on to accounts payable for payments to be remitted via checks delivered by U.S. mail.
According to the complaint, on or about March 8, 2001, just two weeks after Wild’s promotion to management, an entity named Digital Designs Limited began submitting invoices to MHHS for printing and data conversion services purportedly provided to MHHS. These invoices were submitted by the Printing Services Division and Wild allegedly authorized the payments to Digital Designs. For the next 14 years, the complaint alleges Digital Designs submitted more than 200 invoices to MHHS, varying in frequency and amount each year. The Digital Designs invoices directed all payments to be remitted to a Post Office box in Houston. To date, MHHS has mailed well more than $9 million in payments to Digital Designs at that address, according to the complaint.
On March 11, 2015, MHHS’s chief audit and compliance officer received an anonymous, hand-written letter alleging the Digital Designs account was an anomalous, ghost account and asking for an investigation, according to the allegations. As a result, MHHS swiftly conducted a preliminary review of the account and immediately reached out to law enforcement to report the incident.According to the complaint, the investigation revealed that Wild allegedly opened the Post Office box where the Digital Designs payments were sent and that he had previously obtained an assumed name certificate for “Digital Designs of Texas, P.O. Box 36345, Houston, TX 77236.”
The investigation further revealed that payments remitted to Digital Designs were allegedly deposited into a bank account which was assigned to Wild with a dba of Digital Designs. The complaint further alleges that a preliminary review of the activity in that account indicates no actual business operations, but appears to be a pass-through account for Wild to allegedly disseminate payments to himself to his other bank accounts. The other accounts appear to show a pattern of significant expenditures for Wild’s credit card payments, substantial interior home improvements and enormous cash withdrawals, according to the allegations in the complaint.
If convicted of mail or wire fraud, Wild faces up to up to 20 years in federal prison and a possible $250,000 maximum fine.
The charges are the result of an investigation by U.S. Postal Inspection Service. Assistant U.S. Attorney Jason Varnado is prosecuting the case.
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.4 Convicted in Sex Trafficking of Minors CaseRead the Press Release
HOUSTON – Four people have been convicted for their roles in a sex trafficking of minors conspiracy in which young females were forced and/or coerced to engaged in commercial sex acts, announced U.S. Attorney Kenneth Magidson.
Emanuel Dandre Wade, 25, pleaded guilty to two counts of sex trafficking of minors. Charmaine Henderson, 26, and Ashley Shawntal Williams, 22, both entered guilty pleas to conspiracy to commit sex trafficking, while Henderson also pleaded to one count of sex trafficking of minors. Darquesha Perry, 27, entered a plea of guilty to misprision of a felony.
Wade and Henderson claimed to own a modeling agency, which, in reality, was a front for prostitution. Wade admitted he coerced minor females to engage in prostitution under the initial guise of “modeling.” He took pictures of the minors and advertised their services on websites.
One of the girls was continually beaten by Wade and forced to continue to prostitute. She indicated that on one occasion, she was beaten for simply giving Wade the wrong number of cigarettes. She was eventually recovered by law enforcement.
After the victim’s rescue, Williams contacted her and lied to her, stating she was no longer associating with Wade and to come “hang out” with her. She then took her to a hotel room where Wade was waiting. The victim claimed Wade beat her again, but was eventually able to contact her mother who took her to a hospital to receive treatment.
Wade had also reached out to another victim via a social networking site under the guise of looking for a model. He eventually coerced her into prostitution and kept all of the monies she earned.
Williams admitted to transporting victims to “dates” in her vehicle and had rented motel rooms for the commercial sex acts. She knew the women were minors.
Perry had also provided transportation and allowed Wade to move into her apartment while running his criminal enterprise.
United States District Court Judge Gray Miller accepted the pleas today and has set sentencing for July 10, 2015. At that time, Wade, Henderson and Williams each face up to life in federal prison for each of their counts of conviction. Perry faces up to three years in prison.
Wade and Henderson are in custody, while Perry and Williams remain on release pending their sentencing hearings.
The charges are the result of an investigation conducted by the Houston FBI Innocence Lost Task Force, which includes personnel from the FBI, Houston Police Department and the Harris County Sheriff’s Office. Assistant U.S. Attorney Sherri L. Zack is prosecuting the case.