Southern District of Texas
Press releases recorded for this federal judicial district.
Speech Therapist Guilty of Health Care FraudRead the Press Release
HOUSTON – Rebecca Lee Rabon, 44, of Houston, has pleaded guilty to one count of conspiracy to commit health care fraud and five counts of health care fraud in relation to a health care fraud scheme that billed Tricare and Blue Cross and Blue Shield of Texas more than $3.7 million, announced U.S. Attorney Kenneth Magidson.
Rabon is a licensed speech therapist and the owner and operator of Rabon Communication Enhancement (RCE), a speech therapy clinic for children.
At the hearing today, she admitted that she worked together with Tiffany Nicole Thompson, 31, to submit claims to insurance providers for services that were not medically necessary and not provided. Rabon further admitted that between March 29, 2009, and Nov. 11, 2013, her clinic did not have the equipment or supplies to provide treatment for dysphagia - a swallowing and oral feeding dysfunction - and that neither she, nor any speech therapist employed at RCE, provided any of those treatments to children at the clinic.
Rabon further admitted she submitted $925,140 in false and fraudulent claims for herself and Thompson and three unsuspecting RCE employees for various medical and speech therapy services that were not provided, and including $110,550 in false and fraudulent claims under the medical insurance of one unsuspecting employee. Rabon admitted she and Thompson sent a forged letter to Blue Cross and Blue Shield of Texas with a false address for the employee to prevent the employee from discovering the fraud.In total, Tricare and Blue Cross and Blue Shield of Texas received approximately $3,784,642 in false and fraudulent claims from Rabon and paid her approximately $1,285,827 on those claims.
Rabon has been in custody since Jan. 23, 2015, for violating the terms of her pre-trial release.
U.S. District Judge Melinda Harmon has set sentencing for June 19, 2015, at which time Rabon faces up to 10 years in prison and a possible $250,000 maximum fine.
Thompson, of Katy, has also pleaded guilty to conspiracy and health care fraud charges related to the scheme and will be sentenced April 17, 2015.
The investigation into Rabon and Thompson was the result of an investigation conducted by agents from the Department of Defense - Criminal Investigative Service with assistance of Blue Cross and Blue Shield of Texas – Special Investigations Department. Assistant U.S. Attorney Julie Redlinger is prosecuting the case.
Jury Convicts Man of Filing 26 False Tax Claims and Obstructing IRSRead the Press Release
HOUSTON – Kenneth Robert Bruce has been convicted on all counts as charged, to include 26 counts of willfully filing a false claim against the U.S. and for obstructing the Internal Revenue Service (IRS), announced U.S. Attorney Kenneth Magidson. The verdict was returned late yesterday after a five-day trial and approximately 2 ½ hours of deliberation.
During trial, the jury heard that Bruce prepared 26 false income tax returns or amended income tax returns claiming a total of more than $9 million in false income tax refunds. One return was for himself and 25 were for other taxpayers.
Bruce attached false IRS forms 1099-OID (Original Issue Discount) to the tax returns, falsely reporting the taxpayers had received huge amounts of income from OID and had all or nearly all of the false amounts of income withheld for federal income taxes. The huge, false amounts of withholdings formed the bases for the claims for false claims for tax refunds.
The jury also convicted Bruce on one count of corruptly endeavoring to obstruct and impede the administration of the Internal Revenue Code.
U.S. District Judge Nancy Atlas presided over trial and has set sentencing for June 9, 2015. At that time Bruce faces up to five years on each count of filing a false claim and up to three years for the obstruction. Each conviction also carries as possible punishment a $250,000 fine.
The convictions were the result of an investigation by IRS - Criminal Investigation and the Treasury Inspector General for Tax Administration. Assistant U.S. Attorneys Charles J. Escher and Jim McAlister are prosecuting the case.
Former HPD Officer Ordered to Prison for Drug Conspiracy ConvictionRead the Press Release
HOUSTON - Former Houston Police Department (HPD) officer Marcos E. Carrion has been ordered to federal prison for his role in a drug conspiracy, announced U.S. Attorney Kenneth Magidson. Carrion entered a guilty plea to the charge Thursday, Oct. 9, 2014.
Today, U.S. District Judge Sim Lake, who accepted the plea, handed Carrion a total sentence of 70 months in federal prison to be immediately followed by five years of supervised release. In handing down the sentence, Judge Lake noted that Carrion violated a position of trust by agreeing to escort cocaine loads in the city.
On April 16, 2014, a Houston grand jury returned a sealed indictment charging Carrion with conspiring with others to possess with the intent to distribute five or more kilograms of cocaine from mid-2013 through April 2014. Carrion, 37, a five-year HPD veteran, had been assigned to the Southwest Patrol Division prior to resigning from his position.
As part of his plea agreement, Carrion admitted to providing security for a narcotics transaction which involved 10 kilograms of cocaine. During negotiations, Carrion stated he was an HPD officer and that he “had a lot to lose,” but ultimately agreed to providing security in exchange for $2,500. After being paid, Carrion falsely claimed another officer was present and demanded another $2,500.
Carrion also agreed to provide security for future transactions which were to involve 20-30 kilogram loads of cocaine. He claimed he could arrange for additional uniformed officers to assist whom he would pay and instruct to just show up, not ask questions and do what he said.
Carrion 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 Drug Enforcement Administration, Houston Police Department and FBI investigated. Assistant U.S. Attorneys Mark E. Donnelly and Shelley J. Hicks are prosecuting the case.
Tanzanian National Heads to Prison in Tax Fraud Scheme Involving Nearly 700 VictimsRead the Press Release
HOUSTON - Tanzanian national Amon Rweyemamu Mtaza, of Houston, has been ordered to prison following his conviction of conspiracy to commit wire fraud, wire fraud and two counts of aggravated identity theft, announced U.S. Attorney Kenneth Magidson. Mtaza pleaded guilty Sept. 16, 2014.
Today, U.S. District Judge Gray Miller, who accepted the guilty plea, handed Mtaza a 63-month sentence for the conspiracy and wire fraud charges to be served concurrently. He also received an additional two years for the aggravated identity theft conviction which will be served consecutively to the other sentence imposed resulting in a 87-month federal prison sentence.
As part of the sentence, the court also signed a final order of forfeiture for a 2006 Maserati and a 2007 Mercedes Benz s550 as proceeds gained from the illegal scheme and ordered Mtaza to pay $404,409 in restitution. In handing down the sentence, Judge Miller considered the numerous victim impact statements that were submitted and the extent of the scheme.
Mtaza is expected to face deportation proceedings following his release from prison.
At the time of his plea, Mtaza admitted he ran a stolen identity refund fraud (SIRF) scheme that targeted more than 600 people and involved the filing of hundreds of fraudulent tax returns. Mtaza used stolen and unlawfully obtained personal identity information, including the names and Social Security numbers, of true persons to prepare fraudulent U.S. income tax returns. The returns were electronically filed in order to generate and obtain tax refunds to which he was not entitled. Mtaza then either directed the fraudulently obtained tax refunds to be deposited onto reloadable debit cards or disbursed as U.S. Treasury checks and used the monies to obtain cash and goods for his own benefit.
The tax refund filings account for an intended loss of more than $1.8 million with an actual loss of $404,409 to the Internal Revenue Service (IRS). A total of 685 victims were identified as victims in Mtaza’s scheme.
Mtaza will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case was investigated and prosecuted by the U.S. Postal Inspection Service and IRS - Criminal Investigation. Assistant United States Attorney Suzanne Elmilady is prosecuting this case.
Houston Man Convicted in Brownsville of Importing MethamphetamineRead the Press Release
BROWNSVILLE, Texas – A federal jury has found Derrick Hargrove, 34, guilty on all four counts as charged related to the trafficking of 4.99 kilograms of methamphetamine, announced U.S. Attorney Kenneth Magidson. The verdict was returned today following three days of trial.
Hargrove, of Houston, was convicted of conspiracy to possess with intent to distribute, possession with intent to distribute, conspiracy to import and importation of methamphetamine.
The jury heard that Hargrove crossed from Mexico into the U.S. on Oct. 9, 2014, at the Gateway Port of Entry pedestrian lane with a suitcase. Upon inspection, a Customs and Border Protection (CBP) officer felt something in the suitcase, x-rayed it and observed two packages inside. A search revealed 4.99 kilograms of pure crystal methamphetamine.
Hargrove initially claimed ownership of the suitcase, but later claimed a stranger in Mexico gave it to him on the streets of Mexico. He claimed the stranger asked him to deliver the suitcase to a person he knew who was helping Hargrove get a liquor license for a nightclub he was allegedly opening in Matamoros.Hargrove is from Houston but had been living in Matamoros after losing his job.
U.S. District Judge Andrew S. Hanen, who presided over trial, set sentencing for June 22, 2015. At that time, Hargrove faces a minimum of 10 years and up to life in federal prison as well as a possible $10 million fine. He will remain in custody pending sentencing.
The case was investigated by Homeland Security Investigations and CBP. Assistant U.S. Attorneys Karen Betancourt and Justin Dinsdale prosecuted the case.
Alleged High Ranking Member of Los Zetas Cartel ArrestedRead the Press Release
LAREDO, Texas – Jose Manuel Saldivar-Farias aka “Z-31” or “El Borrado” has been charged with conspiracy to possess marijuana allegations after illegally entering the U.S., announced U.S. Attorney Kenneth Magidson.
Saldivar-Farias, 27, is alleged to be a regional commander for the Los Zetas transnational criminal organization. Initially arrested on immigration charges related to his illegal presence in the U.S., a criminal complaint unsealed today charges him and Osiel Hernandez-Martinez, 26, with conspiracy to possess more than 1,000 kilograms of marijuana. Salidvar-Farias is also charged with giving false statements to government agents.
They appeared in federal court in Laredo this morning and are set for a detention and probable cause hearing before U.S. Magistrate Judge Guillermo R. Garcia on Friday, March 20, 2015, at 10:00 a.m. in Laredo.
The criminal complaint alleges that on the night of March 12, 2015, Texas Department of Public Safety (DPS) Quick Reactionary Force (QRF), in conjunction with the Texas Air National Guard, were conducting fly-over operations over Falcon Lake. During that time, they observed a boat traveling northward into the U.S. from Mexico at a high rate of speed. Suspecting the individuals were undocumented foreign nationals attempting to enter the U.S. illegally, DPS-QRF immediately apprehended the individuals aboard the boat, which included Saldivar-Farias and Hernandez-Martinez. Upon arrest, the criminal complaint alleges Saldivar-Farias lied to agents about his true identity.
According to the criminal complaint, Saldivar-Farias is the regional commander of the northern region of Mexico to include the states of Coahuilla, Taumalipas and Nuevo Leon, Mexico, as well as Zapata, Texas. As such, he is allegedly in charge of all narcotics moving through the area. The criminal complaint alleges several multi-ton quantities of marijuana have been crossed into U.S. over this area every week.
If convicted on the drug charges, Saldivar-Farias and Hernandez-Martinez each face a minimum of 10 years and up to life in federal prison and a possible maximum fine of $10 million. Saldivar-Farias also faces up to five years and a $250,000 fine if convicted of making false statements.
The arrest was a collaboration effort between FBI, Drug Enforcement Administration and Homeland Security Investigations which are all investigative partners within the South Texas corridor to include Customs and Border Protection components Office of Border Patrol, Office of Field Operations and Office of Air and Marine. DPS also provided invaluable assistance in the investigation.
Assistant U.S. Attorneys Casey N. MacDonald and Anibal Alaniz are prosecuting the case.
Woman Pleads Guilty to Preparing False Income Tax ReturnsRead the Press Release
HOUSTON – Nicole Dette Perkins has entered a guilty plea to one count of knowingly presenting a material false, fictitious or fraudulent claim against the United States in the nature of a false U.S. Individual Income Tax Return, announced U.S. Attorney Kenneth Magidson along with Lucy Cruz, special agent in charge of IRS - Criminal Investigation (IRS-CI).
The plea agreement filed in the public record of the case indicates that Perkins prepared income tax returns for others. As part of those returns, she attached false and fabricated W-2 forms purporting to show wages earned and federal taxes withheld when, in fact, the taxpayers did not work for the alleged employers nor had the alleged withholdings. As part of her plea, Perkins admitted she knowingly attached a fabricated W-2 to a tax return claiming wages and withholdings that resulted in a false claim for an income tax refund and a tax loss to the United States of $7,889.
Perkins further agreed in the plea agreement that for purposes of sentencing, her conduct resulted in an intended tax loss to the United States of $346,044. The intended tax loss included not only the intended tax loss on tax returns Perkins prepared for others, but also the intended tax loss of more than $20,000 on three of Perkins’s own income tax returns. Perkins has agreed to pay restitution to the United States of $66,332.
U.S. District Judge Lee Rosenthal, who accepted the plea today, has set sentencing for June 25, 2015, at which time Perkins faces up to five years in federal prison and a possible $250,000 fine.
She was permitted to remain on bond pending that hearing.
This case was the result of an IRS-CI investigation and is being prosecuted by Assistant U.S. Attorney Charles J. Escher.
Laredoan Pleads Guilty to Possessing Child PornographyRead the Press Release
LAREDO, Texas – Oscar Herrera III, 42, of Laredo, has pleaded guilty to possession of child pornography, announced U.S. Attorney Kenneth Magidson along with Janice Ayala, special agent in charge of Homeland Security Investigations (HSI) in San Antonio and Webb County Sherriff Martin Cuellar.
“This case is another example of the many successes resulting from the strong partnership between HSI and Webb County,” said Ayala, “a partnership which is a credit to the leadership and direction of Sheriff Martin Cuellar.”
As part of the plea today, the court heard that an investigator with the Webb County Sheriff’s Office, while using peer-to-peer software, was able to successfully download various files containing child pornography from an IP address associated with Herrera. As a result of this information, HSI special agents were contacted to assist in the investigation.
In November 2014, agents executed a search warrant at Herrera’s residence, at which time they seized various electronic devices. Forensic analysis on those devices revealed more than 3,000 images and more than 400 videos of child pornography. Herrera admitted watching the videos and that he knew that it was wrong.
“We’re glad individuals such as Herrera are admitting to the crime they committed, said Cuellar. “We will continue to be on the lookout for those who prey on the most vulnerable members of our population and ensure that they are brought to justice.”
The arrest of Herrera 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.
U.S. District Court Judge Marina Garcia Marmolejo accepted the guilty plea today and set sentencing for June 30, 2015. At that time, Herrera faces a maximum of 10 years in federal prison and a possible $250,000 maximum fine. Upon completion of any prison term imposed, Herrera also faces up to life on supervised release during which time the court can impose a number of special conditions designed to protect children and prohibit the use of the Internet.
Herrera has been and will remain in custody pending sentencing.
This case, prosecuted by Assistant U.S. Attorney Christopher A. dos Santos, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former Fugitive Narcotics Trafficker Handed Hefty SentenceRead the Press Release
McALLEN, Texas – Jose Urbano Cortinas, 29, has been ordered to prison for nearly 23 years following his conviction of conspiring to possess with the intent to distribute cocaine, announced U.S. Attorney Kenneth Magidson. Cortinas, of Memphis, Tenn., entered a guilty plea to the charge Oct. 29, 2014.
Today, U.S. District Judge Randy Crane ordered Cortinas to serve a total of 262 months in federal prison to be immediately followed by a five-year-term of supervised release.
The investigation revealed that from 2008 through 2011, Cortinas and others conspired to transport large amounts of cocaine from the Rio Grande Valley to Georgia via tractor-trailers. During the investigation, law enforcement was able to seize several loads of cocaine, including 267 kilograms on May 15, 2009, and 330 kilograms on Jan. 29, 2010.
Cortinas was indicted in 2011, but fled to Arkansas. He was subsequently apprehended in July 2014.
The investigation leading to the charges was conducted by the Drug Enforcement Administration. Assistant U.S. Attorney James Sturgis prosecuted the case.
Sugar Land Man Heads to Prison for Trafficking Counterfeit Louis Vuitton, Coach and Other MerchandiseRead the Press Release
HOUSTON – Han Woon Liew, 46, of Sugar Land, has been ordered to federal prison following his conviction of conspiracy to traffic in counterfeit goods, announced United States Attorney Kenneth Magidson along with Brian M. Moskowitz, special agent in charge of Homeland Security Investigations (HSI) in Houston. Liew pleaded guilty Nov. 18, 2014.
Today, U.S. District Judge Lynn C. Hughes ordered he serve 70 months of federal imprisonment to be immediately followed by three years of supervised release. He was further ordered to pay $2.6 million in restitution.
“The partnership between HSI - Houston special agents and officers of the Houston Police Department (HPD) led to the downfall of one of the region’s largest distributors of counterfeit luxury goods” said Moskowitz. “The significant prison sentence imposed by the court highlights the serious nature of intellectual property crimes and the large restitution figure reinforces the fact that these are not victimless crimes.”
Liew admitted that from January 2012 through April 2014, he intentionally trafficked in goods, specifically counterfeit Louis Vuitton, Michael Kors, Coach and Gucci purses and wallets. Liew knowingly used counterfeit marks, which were registered trademarks, in an attempt to make the items appear legitimate.
Liew was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation leading to the charges was conducted by Homeland Security Investigations with the assistance of HPD. Assistant U.S. Attorney (AUSA) Celia Moyer and Special AUSA Mark Evans are prosecuting the case.
Man Charged in Multi-Year Fraud SchemeRead the Press Release
HOUSTON – A man believed to be from the Houston area has been arrested on allegations he engaged in an eight-year bank fraud, identity theft and money laundering scheme, announced U.S. Attorney Kenneth Magidson.
Andre Lamont Chenier, 41, was arrested late Friday, March 13, 2015, and will make his initial appearance before U.S. Magistrate Judge George Hanks at 10:00 a.m. today.
The indictment alleges Chenier engaged in a bank fraud scheme spanning from July 2004 to August 2012, during which time he obtained fraudulent commercial loans from local banks using falsified documents and someone else’s Social Security number and laundering the proceeds.
In 2004, Chenierallegedly applied for a $100,000 revolving line of credit loan from a local bank for a company called Teksync Inc. The indictment alleges he requested to have the $100,000 loan increased to $2 million in 2006. As part of his increase request, Chenier allegedly submitted a Personal Financial Statement—Business Banking that contained false and fraudulent information about stock ownership and an Ameritrade account statement that listed fictitious stock ownership and account balances. The indictment further alleges that as part of this statement, Chenier also submitted a falsified balance sheet and bank statement for Teksync that listed a bank balance of $9,309,796.16 when, in fact, the true balance was only $100.
According to the indictment, in 2011, Chenier began the process of applying for a $1,250,000 revolving line of credit loan from another bank for a company called Scott & Burgess. Similar to the other loan, Chenier allegedly submitted a Personal Financial Statement and accounts receivables report that listed fictitious assets as well as U.S. Individual Income Tax Returns that contained the Social Security number of someone else.
If convicted, Chenier faces federal prison time of up to 30 years on the bank fraud charges, 10 years on the money laundering charges as well as a mandatory two years for aggravated which must be served consecutively to any other sentence imposed.
The charges are the result of an investigation conducted by the FBI, Federal Deposit Insurance Corporation – Office of Inspector General and Internal Revenue Service – Criminal Investigation. Assistant U.S. Attorney Belinda Beek is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
Four Guilty in Smuggling Conspiracy Resulting in DeathRead the Press Release
McALLEN, Texas – With the guilty plea of Julia Resendez, 33, four people have now been convicted for their respective roles in an alien smuggling conspiracy that resulted in the death of two Guatemalan nationals, announced U.S. Attorney Kenneth Magidson.
Resendez, of Sullivan City, entered a guilty plea today, while Juan Manuel Garcia, 18, Eloy Mendoza Jr., 26, and Jose Manuel Lovato-Balleza, 23, pleaded guilty March 11, 2015. Garcia and Mendoza are also residents of Sullivan City, while Lovato is Mexican national. Garcia pleaded guilty to conspiracy to transport aliens and to transporting aliens, resulting in death. Mendoza, Lovato and Resendez were convicted of conspiracy to harbor aliens.
On Oct. 2, 2014, U.S. Border Patrol (BP) agents observed a truck appear to be transporting illegal aliens near Sullivan City. Garcia was driving and attempted to evade agents. He soon lost control of the vehicle on a caliche road, hitting an embankment and ejecting the majority of his passengers. BP agents responded immediately and observed Garcia and 11 illegal aliens at the scene of the rollover where one female Guatemalan national was found deceased. The majority of the other aliens had severe injuries and had to be hospitalized. Within a few days, a male Guatemalan national passed away as a result of his injuries sustained in the rollover.
Based on their investigation, law enforcement was able to determine that the aliens involved in the rollover had been harbored in two alien stash houses located in Sullivan City. Agents discovered 15 aliens at a house on Huisache St. and another 16 were being harbored at a house on Ebony St. Mendoza and Lovato were determined to be the caretakers of the aliens found in the Huisache house, while Resendez was the caretaker in the Ebony house. Two of the aliens that Resendez was harboring were visibly injured and admitted to being in the rollover and fleeing afterwards. Both of these aliens indicated that they had been harbored by Mendoza and Lovato at the Huisache residence prior to the rollover.
The defendants will remain in custody pending sentencing, which is set for May 26, 2015, before U.S. District Judge Randy Crane. At that time, Garcia faces of up to life in federal prison, while Mendoza, Lovato and Resendez face up to 10 ten years imprisonment. All also face a potential $250,000 maximum fine.
The charges are the result of an investigation by Homeland Security Investigations, BP and the Texas Department of Public Safety. Assistant U.S. Attorney David A. Lindenmuth is prosecuting the case.Fraudsters Sent to Federal PrisonRead the Press Release
CORPUS CHRISTI, Texas - Several individuals have been ordered to federal prison for their roles in a scheme to defraud local banks, announced U.S. Attorney Kenneth Magidson.
Rosemary Guillen, 41, and Richard Villarreal, 29, both of Corpus Christi, pleaded guilty in December 2014 to aiding and assisting one another to commit bank fraud. Today, U.S. District Judge Nelva Gonzalez Ramos sentenced Guillen to 46 months imprisonment to be followed by three years of supervised release and Villarreal to a 46-month-term also to be followed by a three-year-term of supervised release. Both were further ordered to pay restitution.
In a separate, but related, indictment, Brianna Geuea, 36, of Portland, entered a guilty plea to a single count of bank fraud as well as theft of mail. She was also sentenced today to 33 and 27 months in federal prison for the bank fraud and mail theft convictions, respectively. Judge Ramos ordered her sentences to run concurrently. She must also serve three years of supervised release following her release from prison and must pay a total of $4,087.52 in restitution.
As part of the fraudulent scheme, individuals would open banking accounts at a local area credit or gain access to existing accounts. They would then deposit fraudulent or counterfeit checks into those accounts, withdraw money and make purchases before the financial institution discovered the fraudulent nature of the deposits.
The fraudulent activity involved more than 20 accounts and created a potential loss of more than $100,000.
In federal custody since their arrests, all will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be designated in the near future.
The charges stem from an investigation by U.S. Secret Service and the Corpus Christi Police Department. Assistant U.S. Attorney Lance Watt is prosecuting the case.
Former Mexican Governor’s Political Appointee IndictedRead the Press Release
CORPUS CHRISTI, Texas - A former Mexican political appointee from the State of Tamaulipas, Mexico, has been indicted for conspiring to launder monetary instruments, conspiracy to commit bank fraud and two counts of bank fraud, announced U.S. Attorney Kenneth Magidson.
Pablo Zarate Juarez is the former Instituto Tamaulipeco De Vivienda Y Urbanismo (ITAVU) director in the State of Tamaulipas, Mexico. The criminal indictment, returned yesterday, is a result of the efforts of a multi-agency Organized Crime Drug Enforcement Task Force (OCDETF) investigation.
ITAVU is the Tamaulipas Institute for Housing and Urban Development. Zarate Juarez was appointed to the position of director of ITAVU by former Tamaulipas Governor Tomas Yarrington Ruvalcaba. ITAVU is the department in Tamaulipas responsible for supporting lower income residents with housing programs and financing programs.
There was a previously filed Verified Civil Complaint for Forfeiture in Rem regarding a 2005 Pilatus Aircraft, bearing tail number N679PE, also listed in the forfeiture provision of the indictment against Zarate. The Pilatus aircraft is the same aircraft that is also listed in the notice of forfeiture in the pending criminal indictment charging former Tamaulipas Governor Tomas Yarrington Ruvalcaba. In the civil case, it is alleged that Yarrington is the true owner and that he purchased the aircraft through several straw purchasers in a complex money laundering scheme. The laundered proceeds is alleged to have included drug cartel money.
“HSI special agents often investigate complex financial schemes in order to disrupt and dismantle the ongoing operations of suspected transnational criminal organizations,” said Special Agent in Charge Janice Ayala of Homeland Security Investigations (HSI) San Antonio. “These investigations can deprive the organizations from enjoying the fruits of these illicit proceeds and prevent them from furthering the ongoing criminal enterprise. HSI will continue to aggressively investigate fraudulent financial schemes that jeopardize the integrity of our financial system.”
If convicted of the money laundering conspiracy, Zarate faces up to 20 years in federal prison and a possible $500,000 fine (or twice the value of the monetary instrument or funds involved in the transactions or both). Upon conviction of the bank frdu charge, Zarate also faces up to 30 years in Federal prison and a potential $1 million fine.
Zarate is not in the custody of the United States and a warrant remains outstanding for his arrest. Anyone with information about his whereabouts is asked to contact Homeland Security Investigations at 956-542-5811. Persons calling from Mexico should call 001-800-010-5237.
The OCDETF investigation leading to the indictment was conducted in McAllen, San Antonio, Brownsville, Houston, Laredo and Corpus Christi by HSI, FBI, Internal Revenue Service - Criminal Investigation and Drug Enforcement Administration.
This case is being prosecuted in the Southern District of Texas by Assistant U.S. Attorney Julie K. Hampton.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Corpus Christi Man Pleads Guilty to Distributing Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – Kevin Justin Esquivel, 24, of Corpus Christi, has pleaded guilty to distribution of child pornography, announced U.S. Attorney Kenneth Magidson.
The court heard today that agents with the FBI Dallas Child Exploitation Task Force, while using peer-to-peer software, were able to successfully download of various files containing child pornography from an IP address that was associated with Esquivel. As a result of this information, the FBI office in Corpus Christi was contacted to assist in the investigation.
In August 2014, agents executed a search warrant at Esquivel’s residence, at which time they seized various electronic devices. Forensic analysis on those devices revealed more than 4,000 images and more than 900 videos of child pornography. Esquivel admitted having an sexual interest in children between the ages of 10 and 13 years of age and having downloaded child pornography.
U.S. Magistrate Judge Jason B. Libby accepted the guilty plea today and set sentencing for June 30, 2015, before U.S. District Judge Nelva Gonzales Ramos. At that time, Esquivel faces a minimum of five and up to 20 years in federal prison and a possible $250,000 maximum fine. Upon completion of any prison term imposed, Esquivel also faces a maximum of life on supervised release during which time the court can impose a number of special conditions designed to protect children and prohibit the use of the Internet.
Esquivel was arrested on the federal charges in August 2014 and has been in custody since that time where he will remain pending his sentencing.
The FBI investigated with the assistance of the Corpus Christi Police Department.
This case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former Gulf Cartel Plaza Bosses Receive Long Prison SentencesRead the Press Release
BROWNSVILLE, Texas – Jose Luis Zuniga-Hernandez, 47, aka Wicho or XW or Commandante Wicho, has been ordered to federal prison along with his brother Armando Arizmendi Hernandez, 37, aka Commandante Mando or XW2 for conspiracy to import more than five kilograms of cocaine and more than 1,000 kilograms of marijuana between January 2002 and July 2013, announced United States Attorney Kenneth Magidson along with Janice Ayala, special agent in charge of Homeland Security Investigations (HSI) in San Antonio. Both defendants previously pleaded guilty and, as part of their pleas, also agreed to a $5 million forfeiture.
Today, Senior U.S. District Judge Hilda G. Tagle, sentenced Zuniga-Hernandez to 50 years in federal prison, while Arizmendi Hernandez will serve a 35-year-term.
During a sentencing hearing that was held on Feb. 4, 2015, the court heard evidence regarding sentencing enhancements or increases in the calculated sentencing guideline ranges. During the hearing, the government presented evidence that allowed the court to find that the sentences for both should be enhanced because they utilized automatic weapons, grenades, homemade cannons and body armor to provided security during the purchase, transportation and distribution of narcotics. The evidence also proved that both commanded, directed and engaged in violent confrontations with other criminal syndicates to maintain control of the plazas in Mexico. Both received enhancements for importation of methamphetamine into the United States, for bribing law enforcement to facilitate the crimes committed, for maintaining premises for the purpose of manufacturing or distributing a controlled substance. Both also received enhancements because they committed the offense as part of a pattern of criminal conduct or livelihood. Finally, the court also found that both should receive an enhancement because the evidence showed they were leader/organizers of a criminal activity that involved five or more participants and was otherwise extensive.
“The arrest and prosecution of these individuals dealt a significant blow to the Gulf Cartel," said Ayala. "Today’s sentencing marks the culmination of a sustained and dedicated effort by HSI Brownville and Attache Mexico special agents, RGV Sector Border Patrol agents, other federal and state and local partners and the U.S. Attorney's Office towards the dismantlement of transnational criminal organizations impacting public safety on both sides of our border with Mexico."
Zuniga-Hernandez served as plaza boss of the El Control, Tamaulipas, Plaza, for a large period of time between 2008 through 2011 and, during that time, Arizmendi-Hernandez was second in command. Arizmendi-Hernandez became the plaza boss of El Control on Nov. 6, 2010, when Zuniga-Hernandez assumed control of the Matamoros Plaza upon the death of Antonio Ezequiel Cardenas-Guillen. On March 28, 2011, Rafael Cardenas-Vela came to Matamoros to take over the plaza management duties and Zuniga-Hernandez returned to the El Control Plaza. At that time, Arizmendi-Hernandez resumed his duties as second in command of the Plaza.
Cartel Del Golfo Transnational Criminal Organization (CDG) plaza bosses are appointed to specific regions to help coordinate the importation and distribution of multi-ton shipments of cocaine, marijuana and other illicit narcotics within Mexico and into the United States. They are the lead representatives for the CDG in a particular region or town, responsible for maintaining control of the region and ensuring the safe passage of narcotics. The plaza boss also extracts a "piso," or payment, from others who want to transport narcotics for importation into the United States or operate businesses in that region.
The evidence presented at sentencing indicated that Zuniga-Hernandez and the CDG smuggled more than one ton of cocaine through the Matamoros/El Control plaza areas and more that 3000 kilograms of marijuana into the United States per month. Planes and clandestine air strips were used to fly the cocaine into Mexico for later importation and distribution within the United States.
Under his command were approximately 120 lookouts and 60 estacas (a vehicle occupied by three or four armed individuals). Thus, 60 estacas would be anywhere from 180 to 240 armed individuals patrolling the plaza.
On Oct. 27, 2011, Zuniga-Hernandez and Arizmendi Hernandez fled into the United States with Juan Rincon-Rincon and Luis Ivan Nino-Duenes after a gun battle in Mexico involving a power struggle between the plazas of the CDG. All were found and arrested by the U.S. Border Patrol (USBP) hiding near the Rio Grande River. Upon their arrest, agents found a gold, diamond and ruby encrusted gun, more than $39,000 and several cell phones. Evidence on those phones showed discussions with "Apa" about the gun battle and what to do in response. "Apa" was identified as Jorge Eduardo Costilla-Sanchez, the head of the CDG. Also found were videos of Arizmendi Hernandez, Zuniga-Hernandez and other members of the CDG in preparation for and after the Oct. 27, 2011, gun battle.
Zuniga-Hernandez and Arizmendi Hernandez had stipulated that the total relevant conduct during their leadership was well in excess of 150 kilograms of cocaine and 1,000 kilograms of marijuana. Both have agreed they obtained at least $5 million in drug proceeds as a result of the conspiracy.
Both men will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The case was result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation conducted by HSI, Drug Enforcement Administration and the Cameron County Sheriff’s Office. Assistant United States Attorneys Angel Castro and Jody Young are prosecuting.
Angleton Tax Preparer Charged with Preparing False Tax ReturnsRead the Press Release
HOUSTON – A Houston federal grand jury has returned an indictment charging Stanshelle Renique Gaul with 23 counts of preparing false client tax returns, announced U.S. Attorney Kenneth Magidson along with Lucy Cruz, special agent in charge of Internal Revenue Service-Criminal Investigation (IRS-CI)
“Those who might consider preparing false tax returns this filing season should be aware of the consequences of their actions,” said Cruz. “This indictment emphasizes that the IRS and U.S. Attorney’s office will continue their aggressive pursuit of those who are suspected of defrauding America's tax system. Taxpayers should also be very cautious when selecting someone to prepare their returns because ultimately they are responsible for what gets filed with the IRS.”
The indictment was returned March 3, 2015. Gaul surrendered to authorities this morning and made her initial appearance before U.S. Magistrate Judge Nancy K. Johnson at 2:00 p.m. today.
According to the indictment, Gaul operated a tax return preparation business in the Angleton area. The indictment alleges she prepared dozens of materially false client tax returns for tax years 2007 through 2010. The indictment also alleges she included in these tax returns fraudulent charitable and real estate tax deductions, fictitious employment expenses, false fraudulent child and dependent care expenses for people not known to her clients and bogus “side business” losses in order to generate excessive refunds totaling approximately $285,000.
If convicted, Gaul faces up to three years in federal prison and a possible $250,000 fine on each count.The case, investigated by IRS-CI, is being prosecuted by Assistant U.S. Attorney Jimmy Sledge Jr.
Seven Handed Sentences for Cocaine and Meth TraffickingRead the Press Release
LAREDO, Texas – Seven people were sentenced this week for their roles in a drug conspiracy involving the shipment of cocaine and methamphetamine from Laredo to Dallas and Houston, announced U.S. Attorney Kenneth Magidson.
U.S. District Court Judge George P. Kazen ordered Nuevo Laredo attorney Rolando Ariel Salinas-Apac, 34, to a term of 180 months in federal prison. Juan Manuel Reyes, 37, a commercial truck driver from Nuevo Laredo was sentenced to 121 months. Christian Abundez, 23, of Laredo, recevied 110 months, while his sister Blanca Abundez, 29 also of Laredo, was ordered to serve an 84-month-term of imprisonment. Francisco Javier Garza, 55, Abraham Bruno Ortiz, 49, and Gabriel Munoz Solis, 40, all of Laredo, each received individual terms of 92 months.
The seven were charged in two separate federal indictments with conspiracy to possess and possession with intent to distribute in excess of five kilograms of cocaine and heroin and more than 500 grams of methamphetamine. The indictments were returned in July 2013 and were the last of seven indictments relating to a long term Organized Crime Drug Enforcement Task Force (OCDETF) investigation dubbed Operation Ultimate D.
These indictments charged several drug trafficking cells operating out of the Laredo area engaged in a conspiracy to distribute bulk quantities of marijuana, heroin, methamphetamines and cocaine from the Laredo area to distribution venues such as Dallas and Houston.
The investigation has thus far yielded 23 convictions with all but two defendants pleading guilty to various conspiracy to possess with intent to distribute various narcotics to include marijuana, heroin, cocaine and methamphetamines. The remaining two defendants were convicted indiviually in seprate jury trials. Laredo businessman Marco Antonio Marchan was convicted by a federal jury in December 2013, while Juan Manuel Reyes, a Mexican commercial truck driver, was convicted in January 2014.
The remaining two defendants - Ahmed Alejandro Plascencia, 33, of Laredo, and Ilmar Sierra, 35, of Dallas – will be sentenced March 13, 2015.
OCDETF Operation Ultimate D was spearheaded by the Drug Enforcement Administration with the assistance of Internal Revenue Service - Criminal Investigation, Webb County District Attorney’s Office, Webb County Sheriff’s Office and the U.S. Marshals Service.
Assistant U.S. Attorney Mary Lou Castillo is prosecuting the case.
Local Resident Guilty of Tax EvasionRead the Press Release
CORPUS CHRISTI, Texas - Amber Wise has pleaded guilty to making a false statement on a tax return, announced U.S. Attorney Kenneth Magidson.
Wise was charged with three counts of making false statements on her tax returns for tax years 2008, 2009 and 2010. Wise’s tax returns for those three years underreported her income by $241,026 resulting in $69,692.76 in unpaid taxes due to the United States.
At today’s hearing before U.S. Magistrate Judge B. Janice Ellington, Wise admitted that while employed as the manager of Trinity Acceptance Finance Corporation, she filed personal tax returns which underreported her income by more than $53,000 in 2008, more than $109,000 in 2009 and more than $78,000 in 2010. Wise entered a plea of guilty to filing a 2009 tax return containing a false statement of her income, but acknowledged that the total tax loss for all three years of $69,692.76 would be considered by the court in determining her sentence.
A sentencing hearing was scheduled for July 1, 2015, at 9:00 a.m. before U.S. District Judge Nelva Gonzales Ramos. At that time, Wise faces a sentence of up to three years in federal prison and a possible $250,000 fine.
The case was investigated by IRS - Criminal Investigation, FBI and the U.S. Postal Inspection Service and is being prosecuted by Assistant U.S. Attorney Robert D. Thorpe Jr.
Former Teacher Convicted of Receiving Child Pornography via the InternetRead the Press Release
McALLEN, Texas – Mission resident Jesus Javier Garza Jr., 30, has entered a plea of guilty to one count of receipt of child pornography, announced U.S. Attorney Kenneth Magidson. During the hearing today, Garza admitted he was mariachi director at a La Joya High School.
Garza came to the attention of law enforcement following an investigation which began Jan. 8, 2014, into persons using the Internet to traffic in child pornography. A Homeland Security Investigations (HSI) agent was able to locate and identify Garza as the owner of a computer as offering to participate in the distribution and receipt of child pornography movies through a peer-to-peer network.
Law enforcement executed a search warrant on Feb. 27, 2014, at Garza's Mission residence, at which time they seized a computer and various external storage media devices. The forensic examination revealed 189 movies and 302 images of clearly young children engaged in sexually explicit conduct. These movies and images included children under the age of 12 engaged in bondage and acts of violence. Some of the images are of known victims as identified through the National Center for Missing and Exploited Children.
Garza admitted he downloaded child pornography from the Internet, thereby receiving and possessing the child pornography found on his computer and external storage media.
Chief U.S. District Judge Ricardo Hinojosa, who accepted the guilty plea, has set sentencing for June 2, 2015. At that time, Garza faces up to 20 years in federal prison and a possible $250,000 fine. He will remain in custody pending that hearing.
The charges are the result of an investigation conducted by HSI.
This case, prosecuted by Assistant U.S. Attorneys (AUSA) Kimberly Leo and Kristen Rees and former AUSA Juan Villescas, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former Houston Banker Heads to Prison for Bank FraudRead the Press Release
HOUSTON - Quinhun Rollins, 42, of Houston, has been ordered to federal prison following her conviction of bank fraud. She pleaded guilty on Oct. 27, 2014, announced U.S. Attorney Kenneth Magidson.
Today, U.S. District Judge Kenneth Hoyt ordered Rollins to serve was 33 months in prison to be immediately followed by five years of supervised release. She was further ordered to pay restitution in the amount of $462,266.77.
Rollins had worked as an account manager and assistant vice president at Green Bank in Houston. At the time of her plea, she admitted that between January 2012 and February 2014, she fraudulently caused unauthorized payments totaling $517,479.01 from Green Bank to vendors of Green Bank to be deposited into her personal bank account at another bank in Houston.
At the hearing today, the chief financial officer for Green Bank made a victim impact statement to the court, explaining that Rollins had been a trusted bank employee whom he supervised. He told the court that Rollins betrayed the trust of those she worked for and those who worked for her at Green Bank. He further noted that Rollins gave gifts to fellow employees who now know those items and parties thrown at her house were funded with stolen money. “Many of Ms. Rollins’s colleagues who worked for her would have had to work for over 10 years to make the amount of money that Ms. Rollins stole from Green Bank," he said. He provided a final note to the court, saying "this crime hurt deeply.”
Rollins 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 Secret Service and prosecuted by Assistant U.S. Attorney John Braddock.Director of Operations of Retail Clothing Business Pleads Guilty to Failing to Pay Federal Tax WithholdingsRead the Press Release
HOUSTON - William John Shoemaker has been convicted of one count of willfully failing to truthfully account for and to pay federal tax withholdings to the Internal Revenue Service (IRS), announced U.S. Attorney Kenneth Magidson along with Lucy Cruz, special agent in charge of IRS - Criminal Investigation (CI).
According to the plea agreement filed in the public record of the case, Shoemaker failed to truthfully account for and to pay over the trust fund portion of the employment taxes owed by AA Concepts Inc., for the fourth quarter of 2012.
The plea agreement also states that at all times relevant to the case, Shoemaker conducted a retail clothing business through AA Concepts Inc., which operated its retail clothing business under various trade names. Shoemaker held the title of director of operations of AA Concepts and had the duty to truthfully account for and to pay over the federal income taxes and FICA withheld from the wages of the employees of the corporation, according to court records.
Shoemaker also willfully failed to pay approximately $2.198 million in federal income tax withholdings and FICA withholdings for 22 quarters, from the third quarter of 2007 through the fourth quarter of 2012. The plea agreement also indicates that Shoemaker agreed that the relevant conduct, the intended tax loss, for purposes of sentencing is between $2.5 million and $7 million.
Shoemaker has agreed to pay $1,830,324.78 in restitution to the IRS.
U.S. District Court Judge Kenneth Hoyt has set sentencing for May 18, 2015, at which time Shoemaker faces up to five years in federal prison and a potential $250,000 fine.This case was investigated by IRS-CI and is being prosecuted by Assistant U.S. Attorney Charles J. Escher.
Houston Women Guilty of Conspiring to Commit Bank FraudRead the Press Release
HOUSTON - Tonya Beverly, 39, and Leatrice Reynaud, 44, both of Houston, have pleaded guilty to conspiracy to commit bank fraud and bank fraud, announced United States Attorney Kenneth Magidson.
Beverly and Reynaud admitted they conspired together to create and access false and fraudulent USAA Federal Savings Bank accounts using stolen personal identification information, including names, dates of birth and Social Security numbers. Beverly admitted she stole the personal information from the patient files of health care providers with whom she had been employed.
In less than two years, the conspirators created 33 false and fraudulent USAA accounts and transferred approximately $205,719 into those accounts from the real bank accounts of at least 35 individuals. Several of the victims mentioned today were elderly, including one who was born in 1922 and another who was born in 1929, and another victim was caring for her terminally ill husband when the crime occurred. The amount of loss for each victim varied - $23,800 was taken out of the account of the victim born in 1922, while $24,000 was taken from another victim.
At least 16 different banks were affected by the defendants’ actions. As part of the fraud scheme, the conspirators used homes that were listed for sale or vacant as the recipient addresses for debit cards mailed by USAA for the false and fraudulent accounts. The conspirators also used phones registered in the name of another victim of identity theft to access the fraudulent USAA accounts and perform account functions.
Another co-conspirator - Demetria Jones, 40, who plead guilty in relation to the conspiracy in August of last year - provided her address for the receipt of USAA debit cards from the fraudulent accounts. The USAA debit cards in the victims’ real names were used to withdraw cash from ATM machines, including machines located in Hawaii and Texas and to make purchases, including plane tickets to Los Angeles, California for the defendants and the children of one of the defendants.
As part of their plea agreements, the conspirators have agreed to forfeiture of $106,383.51 in unlawful proceeds to the United States.
Beverly and Reynaud were permitted to remain on bond pending sentencing which has been set for May 29, 2015, in front of U.S. District Judge Gray Miller. Jones has also been on bond pending her sentencing which is scheduled for April 24, 2015.
The possible punishment for a conviction of conspiracy to commit bank fraud and bank fraud is up to 30 years in federal prison, a fine of up to $1 million or both.
The investigation leading in this case was conducted by the United States Secret Service. Assistant United States Attorney Julie Redlinger prosecuted the case.
Corpus Christi Man Heads to Prison for Possessing More Than 5 Million Pornographic ImagesRead the Press Release
CORPUS CHRISTI, Texas - Terry Lee Clark, 48, of Corpus Christi, has been ordered to prison following his conviction of possession of child pornography, announced U.S. Attorney Kenneth Magidson.Clark pleaded guilty Oct. 31, 2015.
Today, U.S. District Judge Marina Garcia Marmolejo, who accepted the guilty plea, handed Clark a sentence of 97 months in federal prison to be immediately followed by a life term of supervised release. He will also be required to register as a sex offender.In July 2014, authorities received an anonymous tip and contacted Clark. He gave them permission to search his residence and they found a computer in his bedroom with child pornography on the screen. The computer and several media storage devices were seized and ultimately revealed several images and videos containing child pornography.
Clark acknowledged downloading images of child pornography onto his computer from several different websites and to having a sexual interest in children.
As part of his plea, Clark admitted to possessing more than five million pornographic images. Of those, approximately 47,000 contained child pornography involving pre-pubescent females, some under the age of 12, engaging in sexually explicit conduct with adult males. He also admitted to possessing more than 17,000 pornographic videos, of which nearly 400 contained child pornography which also involved pre-pubescent females engaging in sexually explicit conduct with adult males.
Clark will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges against Clark were the result of an investigation conducted by the Corpus Christi Police Department-Internet Crimes Against Children Task Force with the assistance of Homeland Security Investigations.This case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visitwww.usdoj.gov/psc. For more information about internet safety education, please visitwww.usdoj.gov/psc and click on the tab "resources."
Farmer Charged with Crop Insurance FraudRead the Press Release
CORPUS CHRISTI, Texas – Leon Bernsen Jr., 65, of Corpus Christi, has been indicted for federal crop insurance fraud, announced U.S. Attorney Kenneth Magidson.
The indictment alleges Bernsen, who farms under the name Bernsen Farms, purchased a crop insurance policy from a company that contracted with the Federal Crop Insurance Corporation. Bernsen allegedly ginned more than 300 bales of cotton under a fictitious business name at a cotton gin in Robstown. Bernsen then filed a crop insurance claim and withheld the production of the bales of cotton from the insurance company resulting in fraudulent crop insurance payments, according to the allegations.
Bernsen is expected to make an initial appearance before a U.S. magistrate judge in Corpus Christi in the near future.
If convicted, Bernsen faces up to 30 years in federal prison.
Criminal investigation was conducted by the U.S. Department of Agriculture - Office of Inspector General. Assistant U.S. Attorney Hugo R. Martinez is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Lake Jackson Attorney and Others Charged in Mortgage Fraud SchemeRead the Press Release
HOUSTON - Kirk Lawrence Brannan, 60, a real estate and tax attorney in Lake Jackson, has turned himself in to authorities following the return of a federal indictment alleging he and others participated in a mortgage fraud scheme involving properties in Surfside and Freeport, announced U.S. Attorney Kenneth Magidson.
Brannan is charged in the two-count indictment along with Chucobie Lanier, 37, David Lee Morris, 52, and Derwin Jerome Blackshear, 47. They are set to make their initial appearance today before U.S. Magistrate Judge Nancy K. Johnson at 2:00 p.m.
The indictment, returned under seal Feb. 18, 2015, and unsealed today, alleges that during 2005 through 2009 Brannan sold a number of beach homes that he or family members owned in Surfside and Freeport through a mortgage fraud scheme. Lanier approached Brannan and offered to obtain buyers for Brannan’s homes if Brannan would kick-back to Lanier the proceeds from the sales that were above an agreed upon amount, according to the indictment. Lanier allegedly distributed the fraudulently obtained funds to Morris and Blackshear who helped organize the fraud scheme.
The indictment further alleges Brannan’s beach homes were purchased by “straw buyers” who had no intention of paying of the mortgage loans on their own or living in the homes. Numerous misrepresentations were allegedly made in the mortgage loan applications, and the lenders were induced to lend inflated sums for the purchases.
According to the indictment, all of the beach homes sold through the scheme ended up in foreclosure.
All four defendants are charged with conspiracy and face up to 30 years in federal prison as well as a possible $1 million fine, upon conviction. Brannan, Lanier and Morris are also charged with one count of bank fraud and face the same penalty if convicted on that charge.
The charges are the result of an investigation by FBI and the Texas Department of Public Safety. Assistant U.S. Attorney Robert S. Johnson is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Heroin and Methamphetamine Traffickers Ordered to PrisonRead the Press Release
LAREDO, Texas – A total of 12 drug traffickers have been handed federal prison sentences for their convictions related to a far-reaching drug trafficking conspiracy, announced U.S. Attorney Kenneth Magidson. Edgar Loera and Miguel Angel Vives-Macias were convicted by a federal jury of multiple counts involving heroin and methamphetamine on March 3, 2014, following a five-day trial and less than four hours of deliberation. Ten others pleaded guilty in advance of that trial.
Today, U.S. District Judge Keith P. Ellison handed Loera, 31, of Mira Loma, Calif., and Vives-Macias, 35, of San Antonio, respective sentences of 225 and 188 months in federal prison. Those that had previously pleaded guilty in the case were also sentenced today. Luis Daniel Aguilar, 23, of Laredo, received 157 months, while Juan Trevino Jr., 24, Eduardo Gonzalez, 41, Clementina Aguilar-Castillo, 29, and Jose Librado Sanchez-Guerra, 30, all also of Laredo, received respective sentences of 100, 90, 81 and 75 months in federal prison. Antonio De Jesus Mejia-Contreras, 24, of Mira Loma, Calif., was sentenced to 81 months of federal imprisonment. Ericka Pina, 38, of Corpus Christi, and Leticia Corona, 38, of Dallas, received 54 and 70 months, respectively. Eduardo Segura, 23, of Tucson, Ariz., received 73 months, while Carlos Vasquez, 25, of Pomona, Calif., will serve a 30-month-term
During trial, jurors heard testimony from several co-conspirators who detailed several instances of heroin and methamphetamine trafficking from Mexico to Laredo, San Antonio, Houston and Dallas as well as distributions to California, Illinois, Oregon, Tennessee, Kansas, Washington and the Carolinas. The government also presented numerous vehicle title histories from California and Texas as well as vehicle and passenger crossing records from the ports of entry along the entire U.S.-Mexico border.
Testimony of several witnesses, including the 10 co-defendants, tied Loera and Vives-Macias to the trafficking organization between 2011 and 2012. Their testimony implicated both with recruiting drivers and couriers for the drugs in California and Texas.
The case was investigated as part of the Organized Crime Drug Enforcement Task Force by agents with Homeland Security Investigations, Drug Enforcement Administration and Texas Department of Public Safety. Assistant U.S. Attorney José Angel Moreno prosecuted the case.Corpus Christi Man Charged for Kidnapping ChildRead the Press Release
CORPUS CHRISTI, Texas – Austin Carlin, 19, of Corpus Christi, has been charged in a criminal complaint for violating the federal kidnapping act, announced U.S. Attorney Kenneth Magidson.
According to the federal criminal complaint filed this afternoon, Carlin abducted a child from her residence in the early morning hours of Feb. 22, 2015. Carlin allegedly stole a vehicle and drove out of Corpus Christi with the child. An Amber Alert was immediately disseminated in pursuit of Carlin and the child.
Authorities pulled Carlin over as he drove on Interstate 10 approximately 350 miles west of San Antonio. Law enforcement was able to arrest Carlin and successfully recover the child and return her to her family.
Carlin is in custody and expected to make his initial appearance before U.S. Magistrate Judge Jason Libby tomorrow at 2:00 p.m.
If convicted, he faces a minimum of 20 years and up to life in federal prison as well as a possible $250,000 fine.
The charges are the result of the investigative efforts of the FBI, Corpus Christi Police Department and the Texas Department of Public Safety. Assistant U.S. Attorney Hugo R. Martinez 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.Three Charged in Fraud SchemeRead the Press Release
HOUSTON – Stefano Guido Vitale, 39, Alan Leschyshyn, 51, and Bree Ann Davis, 38, have been arrested following the return of a federal indictment alleging a conspiracy to commit wire fraud and a conspiracy to commit money laundering, announced U.S. Attorney Kenneth Magidson.
The indictment alleges the scheme produced approximately $2.5 million in fraudulently obtained proceeds which the defendants agreed to launder through various bank accounts. The defendants are accused of using and establishing various business entities during their scheme to sell, at a discount, nonexistent commercial accounts receivable.
They allegedly approached factoring companies as sellers of customized gaming vault bundles and presented fabricated invoices as evidence the defendants were owed a certain amount of money for goods provided to another one of their business entities. To establish creditworthiness of these companies and to convince the factoring company the credit risk was minimal, documents were fabricated and/or altered and provided to the factoring company by the defendants, according to the charges.
“Engaging in financial transactions comprised of criminally derived funds in order to conceal the true nature and source of the proceeds is money laundering,” said Lucy Cruz, special agent in charge of Internal Revenue Service-Criminal Investigation (IRS-CI). “We will continue to work with our federal law enforcement partners to investigate those who engage in fraudulent conduct.”
Vitale and Leschyshyn, of Scottsdale and Cave Creek, Ariz., respectively, will make their initial appearances in Phoenix, while Davis, of Lakewood, Colo., will appear before a U.S. magistrate judge in Denver. They are expected to make appearances in Houston in the near future.
If convicted, they each face up to 20 years in federal prison on each charge.
The criminal investigation was conducted by IRS-CI and the FBI. Assistant U.S. Attorney Melissa Annis is prosecuting the case.
Multiple Arrests in Massive Two-City Enforcement ActionRead the Press Release
LAREDO, Texas - A federal indictment has been partially unsealed following the arrest of 17 defendants in the Laredo and Dallas areas on charges related to a long-term investigation into a drug and money laundering conspiracy, announced U.S. Attorney Kenneth Magidson along with Special Agent in Charge Joseph M. Arabit of the Drug Enforcement Administration (DEA).
“Nothing is more important than the safety and security of our communities,” said Arabit. “DEA, along with our federal, state and local law enforcement partners in Laredo and throughout Texas, will continue to coordinate and work closely together and pursue those individuals who jeopardize our neighborhoods through their smuggling and distribution of illegal and dangerous drugs.”
The indictment was returned under seal Feb. 3, 2015, and partially unsealed as to each defendant upon their arrest today. It remains sealed as to those charged but not as yet in custody.
Those arrested in the Laredo area included Jaime Enrique Montalvo-Ruiz, 44, Felipe Gonzalez-Flores, 46, Jose Angel Trejo, 42, Salvador Saldaña-Medrano, 36, Baltazar Ibarra Cardona, 54, Ricardo Ramirez, 33, Raquel Margarita Ramos Jimenez, 43, and Leslie Bernice Trejo, 22, all of Laredo; and Victor Hugo Trejo Nava, 41, Joshua Sanchez, 32, and Erika Alvarez, 38, all of Nuevo Laredo, Tamaulipas, Mexico.
They are expected to make their initial appearances before U.S. Magistrate Judge Scott Hacker tomorrow morning, at which time the government expects to request their continued detention pending further criminal proceedings.
Arturo Lozano, 47, of Grand Prairie, and Leocadio Ruiz, 47, of Cedar Hill, were arrested in the Dallas area. They made their
initial appearances in Dallas today and are expected to appear in Laredo in the near future.Four others are currently in custody on unrelated charges - Erasmo Trejo-Nava, 43, and Gerardo Moreno Recio, 46, both of Laredo; and Juan Manuel Vargas-Aguilar, 45, and Mario Alberto Rodriguez, 28, both of Mexico. They are also expected to be transported to Laredo to face the new charges.
The indictment alleges the defendants were members of a drug and money laundering organization from on or about June 2011 through June 2013. They are charged with various federal violations, including engaging in a conspiracy to possess with intent to distribute and possession with intent to distribute multiple kilogram quantities of marijuana as well as a conspiracy to launder drug proceeds.
The indictment alleges that the Erasmo Trejo-Nava drug trafficking organization, which operated out of the Laredo area, was engaged in a conspiracy to distribute bulk quantities of marijuana from the Laredo area for distribution in the Dallas area. The indictment also alleges the organization was involved in a money laundering conspiracy in conjunction with the drug conspiracy. As such, large sums of money were allegedly transported from the Dallas area - the organization’s point of drug distributions - to Laredo and then Nuevo Laredo, Mexico, according to the indictment.
The defendants allegedly procured multiple kilogram quantities of marijuana from the Republic of Mexico and illegally imported into the United States for further transportation by tractor trailer and other means. The indictment also alleges the profits from the sale and distribution of the marijuana were collected from drug distributors in the Dallas area and were transported to the Laredo area. The defendants then allegedly arranged for the transportation of those proceeds back to the Republic of Mexico. According to the charges, the proceeds were used to conduct financial transactions designed in whole or in part to conceal and disguise the nature, ownership, control and source of the drug proceeds when purchasing real estate, materials and services.
The indictment is the culmination of a long term Organized Crime Drug Enforcement Task Force Investigation dubbed Operation Trena Sin Trono spearheaded by the DEA and IRS-Criminal Investigation with assistance from Homeland Security Investigations, Laredo Police Department and Zavala County Sheriff’s Office. Numerous agencies assisted with the arrests to include U.S. Marshals Service, Bureau of Alcohol, Tobacco, Firearms and Explosives, Webb County Sheriff’s Office, Webb Country Constable’s Office, U.S. Border Patrol and Customs and Border Protection Air & Marine. Assistant U.S. Attorney Mary Lou Castillo is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Missouri City Woman Charged with Stealing More Than $1 Million from Former EmployerRead the Press Release
HOUSTON - Michelle Robyn Freytag, 47, has been arrested following the return of a 20-count federal indictment alleging wire fraud and aggravated identity theft, announced United States Attorney Kenneth Magidson.
Freytag, of Missouri City, is expected to make her initial appearance before U.S. Magistrate Judge Stephen Wm. Smith at 2:00 p.m. today in Houston.
The indictment, returned Feb. 11, 2015, alleges Freytag was hired in April 2009 to be the executive assistant for a Houston businessman. Freytag was hired in April 2009, according to the indictment. As early as August 2009, she had allegedly begun misusing her position and her exposure to her employer’s credit card and banking information to arrange for credit cards to be assigned in her name, but under his accounts in order to make unauthorized charges.
The indictment further alleges Freytag also began using credit cards assigned to her employer, his spouse and his businesses and then arranged for the unauthorized charges to be paid from the man’s bank accounts. The indictment sets forth a sampling of the alleged fraudulent spending by Freytag, which includes cash advances, commercial air travel for friends and family members, household items such as thousands of dollars in furniture and a 75” Samsug television as well as charter air travel on a private jet based out of Houston.
In total, the indictment alleges Freyag stole approximately $1.3 million prior to being terminated in January 2014.
If convicted, Freytag faces up to 20 years in federal prison on each of the 18 counts of wire fraud. The aggravated identity theft charge will also carry a possible punishment of a mandatory 24 months which must be served consecutively to any other prison term imposed, upon conviction. A maximum fine of $250,000 could also be imposed on all of the charges.
The investigation was conducted by the FBI. Assistant U.S. Attorney Jason Varnado is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Importing Methamphetamine and Heroin Lands 10-Year Prison TermRead the Press Release
LAREDO, Texas - Mexican national Sergio Cobaruvias-Romero, 55, has been ordered to federal prison following his conviction of possession with the intent to distribute a mixture and substance containing methamphetamine, announced U.S. Attorney Kenneth Magidson. He pleaded guilty April 14, 2014.
Today, U.S. Senior District Judge George Kazen handed Cobaruvias-Romero a sentence of 120 months in federal prison. Not a U.S. citizen, he is expected to face deportation proceedings following his release from prison.
On or about Jan. 18, 2014, Cobaruvias-Romero entered the U.S. from Mexico via the Laredo Port of Entry Bridge #2 in Laredo driving a 2002 Ford Ranger pickup van. Upon entering the primary inspection lane, Customs and Border Protection (CBP) agents discovered anomalies within the vehicle’s tire.
Agents then conducted further examination and extracted 20 bundles of methamphetamine weighing 20.88 kilograms in addition to four bundles of heroin weighing 5.9 kilograms.
Cobaruvias-Romero admitted to trafficking these drugs from Mexico and planned to deliver them to Conroe. He further admitted to multiple prior drug trafficking, during which he would receive $3,000 on each occasion.
The charges are the result of an investigation by Homeland Security Investigations and CBP. Assistant U.S. Attorney Sanjeev Bhasker is prosecuting the case.
Former Title Company Owner Heads to Prison in Bank Fraud ConspiracyRead the Press Release
HOUSTON – Harris County resident Kirk Smith has been ordered to prison following his conviction for defrauding seven different Houston-area banks or more than $2 million in 2007 and 2008, announced United States Attorney Kenneth Magidson. Smith pleaded guilty Oct. 9, 2013.
Today, U.S. District Judge Lee H. Rosenthal, who accepted the guilty plea, handed Smith a 36-month sentence to be followed by three years of supervised release. He will also have to pay $2,078,783.68 in restitution.
As outlined in documents filed with the court and admitted by Smith during his guilty plea, he orchestrated a check kiting scheme that targeted seven different financial institutions in the Houston area. The scheme used multiple bank accounts held in the name of title companies and financial service companies Smith controlled. Smith carried out the scheme by signing checks drawn on the business accounts of these companies knowing the accounts lacked sufficient funds to cover the checks.
At Smith’s direction, an employee of the title companies named Maria Eliza Garza deposited the checks into other company accounts. This conduct artificially inflated the account balances. Smith then wrote additional checks, using the inflated balance caused by the deposit of the insufficient fund checks and caused Garza to deposit those checks into either the original issuing account or other company accounts.
Smith admitted that he used the fraudulently-inflated account balances at the Houston-area banks without institutional approval as interest-free loans, lines of credit and sources of funds for his personal use. He admitted he and Garza discussed these account balances on a near daily basis and that even after two of the Houston-are banks discovered the kiting scheme and notified him that they were closing his accounts, Smith continued the kiting scheme by opening new accounts at two different financial institutions.
From January through June 2008, the number and amount of checks kited by Smithincreased substantially. During this six-month time period, the combined deposits of nine accounts at the remaining Houston-area banks totaled $128,499,315.99. Almost 99% of these deposits - $127,010,571.40 - were from checks made payable between the nine accounts. The kiting activity occurred on a near-daily basis and averaged almost 14 deposited items per day. Smithsigned approximately 98% of the checks used during this time period.
The scheme collapsed in June 2008, when another bank learned of these financial irregularities and suspended Smith’s immediate access to checks deposited in the corporate accounts. The scam caused a total loss of $2,078,783.68.
Garza also pleaded guilty to conspiracy to commit bank fraud. She was sentenced Jan. 21, 2015, to 18 months in prison and restitution for the full loss amount.
Smith was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation was worked jointly by the FBI, Harris County District Attorney’s Office and the Webster and Friendswood Police Departments. Assistant U.S. Attorney John Pearson is prosecuting the case.
Career Offender Sentenced to Nearly 18 Years in Federal PrisonRead the Press Release
CORPUS CHRISTI, Texas - Raymond Estrada, 35, of Corpus Christi, has been ordered to serve a significant sentence following his conviction of possession with intent to distribute crack cocaine and the court’s finding that he was a career offender, announced U.S. Attorney Kenneth Magidson today. He pleaded guilty Nov. 3, 2015.
Estrada was on serving a term of supervised release following a 2008 conviction at the time he committed the offense charges in this case involving 56 grams of cocaine base.
Today, Senior U.S. District Judge Janis Graham Jack ordered he serve 188 months in federal prison to be followed by five years of supervised release. Estrada had been previously convicted of several felonies and was determined to be a career offender by the court. In addition, Judge Jack revoked Estrada’s supervised release on the 2008 conviction further ordered he serve an additional 24 months imprisonment, to run consecutively, for a total sentence of 212 months.
On May 15, 2014, Corpus Christi Police Department (CCPD) conducted a traffic stop on Estrada whom they believed was preparing to cook cocaine base. Law enforcement obtained a search warrant for his residence in Corpus Christi, at which time they discovered a digital scale and packing materials on the kitchen table. They also found a knit cap in a chair that contained approximately 56 grams of crack cocaine. He was immediately arrested.
Estrada will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charge stems from an investigation by Drug Enforcement Administration and the CCPD’s Gang and Narcotics Units. Assistant U.S. Attorney Lance Watt is prosecuted the case.Houston Man Convicted in Million Dollar Fraud Scheme Targeting Dozens of Elderly VictimsRead the Press Release
HOUSTON – Michael Irving, 33, has entered a guilty plea to one count of conspiracy to commit wire fraud and one count of aggravated identity theft, announced U.S. Attorney Kenneth Magidson.
Between Jan. 1, 2013, and Nov. 30, 2013, Irving engaged in a wire fraud conspiracy to unlawfully obtain cash and defraud Compass Bank, a FDIC insured institution. Irving and his co-conspirators unlawfully obtained, shared and busted out multiple credit cards for cash and shared the proceeds with each other.
Irving owned and operated Majix Studio - a business used in the conspiracy - and had a PayPal account for it. Irving would swipe, and authorize his co-conspirators to swipe, fraudulently obtained credit cards through his business terminal using credit card processors PayPal had provided. After the cards were swiped, the funds were deposited into bank accounts or onto debit cards under the care, custody and control of Irving and his co-conspirators.
Irving admitted to processing multiple illegitimate transactions through his business during the course of the conspiracy.
Irving knew the credit cards were fraudulent because they had been applied for and obtained through the use of stolen identities. There were at least 70 victims whose identities had been stolen, all senior citizens between the ages of 70 and 95, living throughout the country.
Irving also knew the transactions going through his processors were illegitimate as there was no exchange of goods for services. Typically, the conspirators ran the fraudulently obtained credit cards for $1,000 to $5,000 until they reached their limits. When necessary, Irving and his co-conspirators would fabricate and submit false information, receipts, invoices and other documentation to PayPal regarding the fraudulent transactions to further facilitate the fraud.
In total, the co-conspirators stole approximately $1.1 during the conspiracy.
U.S. District Judge Lynn Hughes, who accepted the guilty plea today, has set sentencing for May 18, 2015. At that time, Irving faces up to 30 years in prison and a possible $1 million fine for the conspiracy as well as a mandatory 24-month for the identity theft which must be served consecutively to any other sentence imposed.
Co-conspirator Raymond Goffney, 38, also of Houston, previously pleaded guilty to conspiracy and aggravated identity theft. He faces the same penalties and will be sentenced April 27, 2015.
Both were permitted to remain on bond pending sentencing.
The charges are the result of an investigation conducted by the U.S. Secret Service and U.S. Postal Inspection Service. Assistant U.S. Attorney Julie Searle is prosecuting the case.
Former Employee Convicted in Scheme to Defraud Garden RidgeRead the Press Release
HOUSTON – Sandra Johnson, 48, of Katy, has admitted to receiving kickbacks in a money laundering conspiracy that targeted home décor retailer Garden Ridge Pottery, now known as At Home, announced U.S. Attorney Kenneth Magidson.
Johnson was employed as a claims manager at Garden Ridge. In that role, she was responsible for reviewing and approving payment on injury claims filed against the store by its customers, commonly referred to as “slip and fall” claims. Johnson and others conspired to submit fraudulent claims against Garden Ridge for injuries which were either faked or never occurred.
In all, 26 false claims were filed against Garden Ridge which resulted in the issuance of $2,063,436 in settlement proceeds. The fraudulent settlement proceeds were split amongst the alleged injury victims and other co-conspirators, with most of the funds kicked back to Johnson. She admitted to laundering the kickbacks she received by having her co-conspirators pay her either in cash or with cashier’s checks which had been purchased under nominee names.
Natalie Jeng, 42, of Katy, Darlene Drummer, 43, of Fresno, and Niesha Hall, 36, of Houston, have all also pleaded guilty to their respective roles in the scheme. Jeng, Johnson’s sister, was employed as a claims adjuster at a third-party administrator hired by Garden Ridge to administer and investigate claims. Thus, many of the fraudulent claims that were allegedly reviewed by Johnson at Garden Ridge were then reviewed and approved by her sister. Jeng also received a portion of some settlements for her role in the scheme. Drummer and Hall, in addition to filing false claims against Garden Ridge in their own names, also recruited other complicit claimants into the scheme.
U.S. District Judge Kenneth Hoyt has set sentencing for May 11, 2015, at which time Johnson faces up to 20 years in prison and a fine of $250,000. The other three women convicted in the scheme will also be sentenced on that date.
The investigation was conducted by Internal Revenue Service – Criminal Investigation and U.S. Postal Inspection Service. Assistant U.S. Attorney Jay Hileman is prosecuted the case.
Meadows Place Man Handed Significant Sentence for Child Pornography Production ChargeRead the Press Release
HOUSTON - William Butler Myers, 43, has been ordered to federal prison for 236 months for attempted production of child pornography involving a 14-year-old female, announced U.S. Attorney Kenneth Magidson. Myers, of Meadows Place, entered a plea of guilty Nov. 21, 2013.
Today, U.S. District Judge Melinda Harmon ordered the prison term which will be followed by a life term of supervised release. During that time, the court can imposed a number of special conditions designed to protect the children and prohibit the use of the Internet. He will also have to register as a sex offender.
The charges are the result of evidence found on a phone Myers took in for service at a cell phone repair shop. An employee had called law enforcement after he saw what he believed to be images of child pornography on the phone. Law enforcement reviewed the images and subsequently obtained a warrant for Myers residence in Meadows Place, at which time additional evidence was discovered and seized.
During the course of the investigation, law enforcement was eventually able to identify the victim.
Myers has been detained since his federal arrest on June 3, 2013, after the court found him to be a flight risk and danger to the community. He will remain there pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation was conducted by members of the Innocent Images Unit of the Houston FBI, including members of the Houston Police Department, which focuses its attention on investigating offenses involving the exploitation of children.
This case, prosecuted by Assistant U.S. Attorney Sherri Zack, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Three Convicted in Five-Year Drug ConspiracyRead the Press Release
BROWNSVILLE, Texas – Mario Enrique Patlan, 45, Cristina Patlan, 23, and Reymundo Abel Brown Jr., 27, have all entered guilty pleas today in a long-running effort to smuggle drugs via UPS, announced U.S. Attorney Kenneth Magidson. All three are Brownsville residents.
Mario Patlan and Brown pleaded guilty to conspiracy to possess with intent to distribute more than 100 kilograms of marijuana and 500 grams of cocaine. As part of his plea, Mario Patlan is also forfeiting his interest in two residences in Brownsville. The conspiracy ran from 2007 to 2012.
Mario Patlan’s daughter - Cristina Patlan - entered her plea to possessing 37 kilograms of marijuana with intent to distribute in November 2011.
Evidence presented in support of the pleas demonstrated that Mario Patlan and Brown used their positions at UPS to receive and forward drug-ladened packages via UPS air and ground transportation. The packages were received in the area of Cameron County and were shipped throughout the U.S. During the time of the conspiracy, more than 1000 kilograms of marijuana was shipped via UPS to states such as Minnesota, Indiana, Pennsylvania, Georgia, Florida, Ohio, Michigan and New York.
As part of her plea, Cristina Patlan admitted she worked as a recruiter or go-between for her father and various drug trafficking organizations.
The trio will remain in custody pending sentencing, which is set for May 18, 2015, before U.S. District Judge Andrew Hanen. At that time, Mario Patlan and Brown face a minimum of five and up to 40 years in federal prison and a possible $5 million fine. Cristina Patlan faces up to five and a possible $250,000 fine.
The charges are the result of an investigation by the Drug Enforcement Administration and Internal Revenue Service-Criminal Investigation. Assistant U.S. Attorneys David Lindenmuth, Lori Roth and Charles Lewis are prosecuting the case.Mexican National Indicted for Smuggling Cash, Gun and AmmoRead the Press Release
LAREDO, Texas – A federal grand Jury in Laredo has returned an indictment against Jesus Roldan Rubio for attempting to smuggle more than $100,000, a pistol and ammunition, announced U.S. Attorney Kenneth Magidson.
Rubio was initially charged via criminal complaint Jan. 20, 2015. He was indicted Feb. 3 and is set for an arraignment this morning at 11:00 a.m. before U.S. Magistrate Judge J. Scott Hacker.
Homeland Security Investigations (HSI) arrested Rubio, 46, of Puebla, Mexico, Jan. 16, 2015. Court documents allege he was attempting to exit the U.S. via the Lincoln Juarez International Bridge driving a 2012 Chrysler. At that time, he had advised Customs and Border Protection (CBP) officers that he had no monetary instruments or cash exceeding $10,000, no weapons and no ammunition.However, he was referred to secondary inspection during which time an x-ray inspection resulted in the discovery of anomalies to the vehicle’s battery. A visual inspection confirmed the battery itself had been replaced with a counterfeit battery composed of a small motorcycle battery surrounded by a battery case containing packages containing $109,270, a semi-automatic pistol and 100 rounds of pistol ammunition.
If convicted, Rubio faces up to 10 years in federal prison and a possible $250,000 fine.
The charges are the result of an investigation by CBP, HSI and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorneys Jose Homero Ramirez and Mary Ellen Smyth are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless and until convicted through due process of law.McAllen Man Sentenced to 10 Years for Using A GunRead the Press Release
McALLEN, Texas – Oscar Eduardo Juarez has been ordered to prison in relation for his use of a weapon in relation to a crime of violence, announced U.S. Attorney Kenneth Magidson. He pleaded guilty Nov. 24, 2014.
Today, U.S. District Judge Micaela Alvarez ordered the 19-year-old McAllen man to serve 120 months in federal prison to be immediately followed by five years of supervised release.
The investigation revealed that on May 15, 2014, Juarez used a 9mm handgun to forcibly take a vehicle from an individual at a local nightclub. Later that evening, officers with the McAllen Police Department located the weapon and apprehended Juarez.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation leading to the charges was conducted by the McAllen Police Department and the FBI. Assistant U.S. Attorney Juan Villescas and James Sturgis prosecuted the case.
Four Arrested for Conspiring to Commit Health Care Fraud and Money LaunderingRead the Press Release
HOUSTON – Aliksandr Beketav, 53, Mikhail Shiforenko, 43, Alexsandr Voronov, 46, and Daniela Gozes-Wagner, 32, have been arrested following the return of a federal indictment alleging a health care fraud conspiracy and conspiracy to commit money laundering, announced U.S. Attorney Kenneth Magidson.
The two-count Indictment was returned Dec. 17, 2014, and unsealed following their initial appearances before U.S. Magistrate Stephen W. Smith this afternoon. They were temporarily ordered into custody pending a hearing set for Tuesday, Feb. 17, 2015, at 2:00 p.m.
Shiforenko, Voronov and Gozes-Wagner are all residents of Houston, while Beketav is from Calabasas, Calif.
The indictment alleges that from approximately 2007 through the present, the defendants conspired to falsely bill Medicare and Medicaid for numerous unnecessary medical tests. According to the indictment, they paid Medicare and Medicaid beneficiaries to visit so-called “testing facilities” run by the defendants in the Houston area. The defendants caused employees of the testing facilities to visit purportedly homebound beneficiaries (to whom the defendants gained access by way of collusive arrangements with home-health care agencies) in order to conduct diagnostic tests on the beneficiaries at their homes, according to the allegations. The defendants then allegedly caused Medicare and Medicaid to be billed for diagnostic tests that were not performed or were not medically necessary.
In order to hide their fraud from authorities, the indictment alleges they would frequently change the names of the testing facilities and medical professionals listed in the bills submitted to Medicare and Medicaid. For example, if bills submitted to Medicare listing a particular doctor drew scrutiny from reviewing officials, defendants would allegedly cause that doctor’s name to be removed from future submissions, and for another doctor’s name to be substituted on the bill.
The defendants allegedly operated, among others, Dashwood Doctors Medical Clinic, Southwest Healthcare & Diagnostics, Harwin Healthcare & Diagnostic, Hilcroft Healthcare & Diagnostic, Gulfton Healthcare Inc., Westpark Healthcare & Diagnostics, Village Diagnostic Clinic Inc., and 7111 Medical Clinic Inc. in the Houston area, where these tests were purported to have been done. According to the indictment, the defendants submitted more than $28 million in fraudulent Medicare and Medicaid claims under the auspices of those eight facilities, of which Medicare and Medicaid paid more than $11 million.
The Indictment also alleges that from 2007 through the present, the defendants conspired to launder money which were proceeds of their health care fraud.
If convicted of conspiring to commit health care fraud, each faces up to 10 years in federal prison. For conspiring to launder money, they also face 20 years in federal prison, upon conviction. The Indictment also seeks forfeiture of at least $11,440,349 alleged to constitute the proceeds of the unlawful scheme.
The charges are the result of the investigative efforts of the FBI, Texas Attorney General’s Office - Medicaid Fraud Control Unit, and Department of Health and Human Services – Office of Inspector General with the assistance of the Office of Personnel Management and the Railroad Retirement Board. Assistant U.S. Attorneys Michael Chu and Jason Smith 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.Former Houston CPA Convicted of Bankruptcy FraudRead the Press Release
HOUSTON - Stuart Bruce Zidell, 64, of Spring, has entered a plea of guilty to committing bankruptcy fraud, announced U.S. Attorney Kenneth Magidson.
Zidell filed a Chapter 7 bankruptcy petition on Nov. 22, 2011, seeking discharge from debt under the U.S. bankruptcy code. As part of that process, he completed the necessary schedules of his assets and liabilities and a Statement of Financial Affairs.
As part of his plea today, Zidell has admitted he sent an email to a creditor of his estate in which he offered the creditor a sum of money if they agreed not to contest is Chapter 7 bankruptcy case.
In order for the bankruptcy system to work for all parties it is imperative for the debtor to be truthful and forthright in all aspects of the bankruptcy process. The bankruptcy system is based on an honor system; the debtor agrees to provide all of the necessary information requested by the trustee and to assist the trustee in collecting all assets of debtors and comply with the court’s orders to obtain the relief desired under the chapter the case was filed.
U.S. District Judge Keith P. Ellison, who accepted the plea today, has set sentencing for Feb. 19, 2015, at which time Zidell faces up to five years in federal prison and a possible $250,000 fine. He was permitted to remain on bond pending that hearing.
The charges are the result of an investigation conducted by the FBI with assistance from the United States Trustee’s Office. Assistant U.S. Attorney Quincy L. Ollison is prosecuting the case.
Son of Former Cartel Boss Convicted of Attempting to Export Ammunition into MexicoRead the Press Release
BROWNSVILLE, Texas - Osiel Cardenas Jr., 23, of Brownsville, has entered a plea of guilty to attempting to export ammunition into Mexico, announced U.S. Attorney Kenneth Magidson. Cardenas is the son of former head of the Gulf Cartel – Osiel Cardenas-Guillen – who was convicted and sentenced to 25 years in federal prison and ordered to pay a money judgment of $50 million.
On Dec. 31, 2014, Customs and Border Protection (CBP) officers were conducting south-bound inspection operations at the Brownsville and Matamoros International Port of Entry in Brownsville. Cardenas Jr. approached the inspection area driving a 2015 Cadillac Escalade and attempted to exit the U.S. and enter Matamoros, Mexico. He advised officers that he had no money, weapons or ammunition to declare. However, a subsequent search of the vehicle led to the discovery of 489 rounds of 9mm, .223mm and 7.62mm ammunition as well as two .223 rifle magazines.
Cardenas Jr. admitted that the ammunition seized from his vehicle belonged to him and that he had concealed it in order to avoid inspection because he knew that it was illegal to export them into Mexico. He stated that he did not have and had not ever applied for a U.S. Department of State license to export firearms or ammunition. He also admitted he had seen the signs posted near the Port of Entry stating it was against the law to take ammunition into Mexico.
U.S. District Judge Andrew Hanen accepted the plea today and has set sentencing for May 18, 2015, at which time Cardenas Jr. faces a up to 10 years in federal prison and a possible $250,000 fine. He will remain in custody pending that hearing.
The charges are the result of an investigation by CBP and Homeland Security Investigations. Assistant U.S. Attorneys Angel Castro and Jody Young are prosecuting the case.Illegal Alien Arrested on Child Pornography ChargeRead the Press Release
LAREDO, Texas - Fidel Perales-Castillo, 43, has been arrested and charged with possession of child pornography, announced U.S. Attorney Kenneth Magidson along with Homeland Security Investigations (HSI) Special Agent in Charge Janice Ayala in San Antonio and Webb County Sheriff Martin Cuellar. Perales-Castillo is a Mexican Citizen in the United States Illegally.
“Accessing, downloading and sharing child pornography constitutes a very serious crime that HSI will rigorously investigate in order to pinpoint the alleged perpetrator and potential victims,” said Ayala. “Make no mistake, if you use the Internet to download child pornography, you will be identified, arrested and prosecuted.”
Perales-Castillo was arrested today following an investigation by the Laredo Child Exploitation Task Force led by HSI and the Webb County Sheriff's Office Cyber Crime Unit with assistance from the Laredo Police Department, Texas Department of Public Safety and U.S. Marshals Service. He is expected to make his initial appearance before U.S. Magistrate Judge J. Scott Hacker tomorrow morning.
“This is just one of the several cases that our investigators are keeping a close eye on,” said Cuellar. “We will continue to utilize all resources as we track down these suspected child predators.”
The criminal complaint, filed today, alleges Perales-Castillo utilized the Internet to download images depicting a minor engaging in sexually explicit conduct. Such images were allegedly downloaded multiple times over the past four years to a computer that was seized from his possession.
If convicted, Perales-Castillo faces up to 20 years in federal prison and a possible $250,000 fine. Upon conviction, he will also be required to register as a sex offender.
This case, prosecuted by Assistant U.S. Attorney Sarah Ellison, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Federal Jury Convicts Two in Drug Trafficking ConspiracyRead the Press Release
CORPUS CHRISTI, Texas – Two men have been found guilty for their roles in a large-scale drug-trafficking conspiracy, announced U.S. Attorney Kenneth Magidson.
Guillermo Herrera, 55, and Hector Alberto Burton aka Hector Alberto Camacho, 40, were convicted of conspiracy to possess with the intent to distribute more than 100 kilograms of marijuana and aiding and abetting each other to possess with the intent to distribute more than 100 kilograms of marijuana on Jan. 22, 2013. The federal jury returned its verdicts late today following a three-day trial and less than two hours of deliberation.
Herrera, of Edinburg, and Burton, of Commiskey, Ind., were arrested in 2014 on charges relating to their participation in a South Texas drug-trafficking organization. The government presented evidence regarding the seize of more than 500 pounds of marijuana. Evidence presented showed that Burton orchestrated the transportation of the marijuana from another state and Herrera was hired to drive the load.
Senior U.S. Judge Hayden Head, who presided over the trial, has set sentencing for April 29, 2015, at which time Herrera and Burton a minimum of five and up to 40 years in federal prison.
Burton was permitted to remain on bond, while Herrera has been and will remain in custody pending that hearing.
The investigation leading to the criminal charges was conducted in Corpus Christi lead by the Drug Enforcement Administration, Texas Department of Public Safety, Aransas Pass Police Department, U.S. Marshals Service and the Kingsville Specialized Narcotics Task Force. Assistant U.S. Attorney Julie K. Hampton is prosecuting the case.
Two Plead Guilty in Bank Fraud Scheme at Zapata National BankRead the Press Release
LAREDO, Texas - Petra Del Bosque, 54, and Anita Arredondo, 53, both of Zapata, have both been convicted of embezzling money in a long-running bank fraud scheme targeting Zapata National Bank (ZNB), announced United States Attorney Kenneth Magidson. Arredondo entered her plea this morning, while Del Bosque previously pleaded last month.
Del Bosque is a former employee of Zapata National Bank (ZNB), while Arredondo worked for a Zapata-based construction company as a clerk in the accounts payable department and had responsibility for issuing company checks.
For two years, Arredondo issued numerous false company checks made payable to contractors who had not performed the work that was the alleged basis for the checks.
Arredondo admitted to endorsing the false checks by forging the signatures of the contractors and then delivering the checks to Del Bosque at ZNB. Del Bosque led ZNB bank tellers to believe she was cashing the checks on behalf of the contractors who were unable to come to the bank themselves and that she would deliver the funds from the cashed checks. However, she actually pocketed the money and split the proceeds of the fraud with Arredondo.
Both have admitted that the loss as a result of the scheme totals more than $800,000.
U.S. District Judge Marina Garcia Marmolejo accepted the pleas and has set sentencing for April 28, 2015. At that time, each faces up to 30 years in federal prison and a possible $1 million fine.
The FBI investigated. Assistant U.S. Attorneys Robert S. Johnson and Sanjeev Bhasker are prosecuting the case.
Jury Convicts Houston Man of Smuggling Almost 9 Kilograms of MethamphetamineRead the Press Release
HOUSTON – A federal jury in Houston has convicted Larry Maurice Favorite, 32, of Houston, of possession with intent to distribute at least 500 grams of a mixture or substance containing methamphetamine and conspiracy to do the same, announced U.S. Attorney Kenneth Magidson. The jury returned its verdict this afternoon following a two-day trial before U.S. District Judge Gray Miller.
The jury hard that on June 22, 2012, Favorite drove a Honda minivan from Laredo to the Border Patrol immigration checkpoint on Highway 59, approximately 16 miles west of Freer. His mother, Juanita Eva Velasquez, was riding as a front seat passenger. A law enforcement canine alerted to the van in primary inspection, at which time agents sent the van and occupants to secondary inspection. A search was conducted which revealed three unmarked glass bottles in a bag located near the front passenger seat of the van. The bottles contained a brown liquid that appeared to be thicker than water.Agents then found six more identical looking bottles behind the center console area. The nine bottles held a total of approximately nine liters of liquid, which agents field tested positive for methamphetamine.
Velasquez and Favorite were immediately arrested and agents with the Drug Enforcement Administration (DEA) conducted further investigation. Favorite initially told agents he did not know there were any bottles in the van and that he and his mother had driven down from Houston.
However, when agents asked if the bottles belonged to his mother, Favorite then claimed they were only his. He stated he received them previously from a Hispanic male, but would not elaborate.
The bottles were sent to the DEA laboratory for more thorough testing. The laboratory confirmed the liquid contained methamphetamine having a net weight of 8.966 kilograms with a purity level of 48.4%. The total amount of actual methamphetamine in the bottles was 4.339 kilograms.
As a result of the conviction today, Favorite faces a minimum of 10 years and up to life in federal prison and a possible $10 million fine. He is set for sentencing May 22, 2015.
Velasquez was also charged and pleaded guilty last week to the methamphetamine trafficking conspiracy. She will also be sentenced May 22, 2015.
The investigation leading to the charges in this case was conducted by DEA and Border Patrol. Assistant U.S. Attorney Arthur R. Jones and Anibal Alaniz prosecuted the case.
Hidalgo HUD Officials Charged with Conspiracy to Commit Bribery and EmbezzlementRead the Press Release
McALLEN, Texas ‐ Susana Munguia, 61, and Lubina Pedraza, 54, both of Hidalgo, have been arrested and charged with conspiracy to commit bribery and embezzlement and several counts of bribery, announced U.S. Attorney Kenneth Magidson.
Munguia and Pedraza were former officials with the City of Hidalgo Housing Authority who worked directly with the Department of Housing and Urban Development (HUD) Housing Choice Voucher Program (HCVP). Munguia was the executive director and Pedraza was a secretary.
The indictment charging them was returned under seal Feb. 3, 2015, and unsealed today upon their arrest. They made their initial appearances before U.S. Magistrate Judge Dorina Ramos this morning, at which time they were temporarily ordered into custody pending a detention hearing set for Feb. 13, 2015, at 11:00 a.m.
From July 2011 to May 2014, Munguia and Pedraza allegedly used their positions as public officials to engage in a bribery scheme. According to the indictment, the two women solicited and received bribes in exchange for allowing individuals to skip the Section 8 waitlist and immediately obtain housing assistance from the HCVP. Individuals paid, directly or through a third party, a monetary bribe to Munguia and Pedraza in order to bypass the waitlist system and to receive immediate approval to obtain vouchers for housing subsidies under the HCVP, according to the indictment.
Pedraza was responsible for assigning housing to the payee or beneficiary and issued checks to subsidize their rent payments. The indictment alleges that after Munguia and Pedraza received the bribe, the paying party (or the person for whom payment was made), would immediately receive their subsidized housing.
The indictment further alleges that from July 2013 to May 2014, Munguia and Pedraza also engaged in an embezzlement scheme, during which they took more than $5,000 in HUD funds through the issuance of false and fraudulent checks for Section 8 housing assistance. Pedraza was also responsible for the processing of rental subsidies to various landlords/owners.The indictment alleges that uponpreparing the legitimate checks to pay the subsidies, Pedraza did cause multiple false and fraudulent check requests to be issued based on a falsified need for monthly Housing Authority payments to a particular owner/landlord. These fraudulent checks were made out to owners/landlords who either did not own or maintain a rental property and/or the property was not occupied by a Section 8 tenant, according to the allegations.
Munguia was responsible for the verification of the payment and the authorizing signature on the check. The indictment alleges that after Mungia issued and signed the fraudulent checks, Pedraza would then cash the fraudulent checks at Casa de Cambio or deposit the check at a BBVA Compass Bank and subsequently withdraw the money. Both women allegedly shared in the fraudulent proceeds.
If convicted, Munguia and Pedraza face up to 15 years in federal prison for the bribery charges and up to five years for the conspiracy charges.
The investigation leading to the charges was conducted by HUD-Office of Inspector General and the FBI. Assistant U.S. Attorney Kristen Rees is prosecuting the case.
An Indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Former Starr County Deputy Sheriff Pleads Guilty to Drug TraffickingRead the Press Release
LAREDO, Texas - Amy Reyes, 32, a former deputy with the Starr County Sheriff’s Office (SCSO), and her bother Bobby Lee Reyes, 36, both of Rio Grande City, have entered guilty pleas to possession with intent to distribute 34 kilograms of marijuana, announced U.S. Attorney Kenneth Magidson.
On Nov. 10, 2014 Amy Reyes and her brother were arrested at the Border Patrol (BP) Checkpoint located on Highway-16 in Hebbronville. Bobby Lee Reyes was driving a 2010 Chevy Malibu vehicle, while his sister rode as a passenger in the front seat.
Upon primary inspection, a canine alerted to the presence of narcotics within the vehicle. Agents then conducted an x-ray examination, during which time agents discovered 12 bundles of marijuana, weighing 34.9 kilograms, underneath the vehicle’s floor carpet.
Both defendants admitted trafficking marijuana to Houston and expected to receive financial compensation for their involvement. Amy Reyes was employed as a deputy with SCSO, but has since been terminated.U.S. District Judge Marina Garcia Marmolejo will set sentencing in the near future. At that time, the siblings will face up to five years in federal prison and a possible $250,000 maximum fine. They were permitted to remain on bond pending that hearing.
The charges are the result of an investigation by BP and the Drug Enforcement Administration. Assistant U.S. Attorney Sanjeev Bhasker is prosecuting the case.
Louisiana Woman Sentenced in Million Dollar Fraud SchemeRead the Press Release
HOUSTON – Monica Causgrove, 43, of Lafayette, La., has been ordered to federal prison following her conviction of wire fraud in a scheme in which she caused Hess Corporation more than $1 million in loss, announced U.S. Attorney Kenneth Magidson. She pleaded guilty Nov. 24, 2014.
Today, U.S. District Judge U.S. District Judge Kenneth Hoyt, who accepted the guilty plea, handed Causgrove a 12-month and one day sentence to be immediately followed by three years of supervised release to include six months of home confinement. She was further ordered to pay $1,061,845.15 in restitution.
At the time of her guilty plea, she acknowledged she used her company credit card and her position at Hess to run up unauthorized charges in excess of $1 million, including a stay at the Ritz-Carlton in Montego Bay, Jamaica.
Causgrove was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation leading to the charges was conducted by the Secret Service. Assistant U.S. Attorney Andrew Leuchtmann is prosecuting the case.