Western District of Texas

WACO – Today, 42-year-old Kevin Romulus Pelayo and 37-year-old Cristine Furio Fredericks admitted to conducting a multi-million-dollar scheme to defraud the U.S. Army with respect to a mass transportation benefit program at Fort Hood.

On April 21, 2000, Presidential Executive Order 13150, subject Federal Workforce Transportation, directed all federal agencies to implement a Mass Transportation Benefit Program to qualified federal employees for individual employee commuting costs incurred through the use of mass transportation and van pools. On January 1, 2001, the Department of the Army (DA) implemented a mass transportation benefit program for Army soldiers and civilian employees.

Appearing before U.S. Magistrate Judge Jeffrey C. Manske, Pelayo and Fredericks pleaded guilty to two counts of engaging in monetary transactions with criminally derived property.  Pelayo also pleaded guilty to one count of conspiracy to commit wire fraud.  By pleading guilty, Pelayo and Fredericks admitted that from January 2014 to June 2020, they provided false documentation regarding their ride-share program on Fort Hood called Soldiers Vanpools, LLC, including names and other personal information of over 1,000 unsuspecting active-duty soldiers, in order to fraudulently collect Department of Transportation Mass Transportation Benefit Program funds.

U.S. Attorney Ashley C. Hoff; Special Agent in Charge Ray Rayos, Southwestern Fraud Field Office of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit (Army CIC-MPFU); and Special Agent in Charge Richard D. Goss of the IRS Criminal Investigation’s Houston Field Office made today’s announcement.

The defendants face up to 10 years in federal prison for each money laundering charge.  Pelayo faces up to 20 years in federal prison for the conspiracy charge.  The defendants have agreed to forfeit to the government proceeds of their fraudulent scheme to include a dozen real estate properties in Killeen, Harker Heights, Copperas Cove and Kempner; 43 automobiles, SUVs, ATVs and a 5th-wheel trailer; over 120 designer tote bags, handbags and wallets; and, over $600,000 in cash.  Sentencing has yet to be scheduled.

The Army CIC-MPFU’s Southwestern Fraud Field Office and IRS Criminal Investigation are conducting this ongoing investigation with valuable assistance from the Texas Department of Public Safety’s Criminal Investigations Division.  Assistant U.S. Attorneys Greg Gloff and Robert Almonte are prosecuting this case.

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WACO – A federal jury yesterday convicted 52-year-old Jonathan Jefferson Ferris on two counts of impersonating a federal agent.

Evidence presented during trial revealed that on multiple occasions in July and August 2019, Ferris entered a pharmacy in Temple looking to fill an out-of-state prescription for Fentanyl patches.  Ferris always identified himself to the pharmacy employee as an out-of-town FBI agent on temporary assignment.  Ferris wore a lanyard with a fake FBI identification card attached and used fraudulent documentation purportedly from the FBI to support his request for filling the Fentanyl prescriptions.

U.S. Attorney Ashley C. Hoff and Special Agent in Charge Christopher Combs of the FBI’s San Antonio Division made today’s announcement.

Ferris faces up to three years in federal prison.  Sentencing is scheduled for September 29, 2021, before U.S. District Judge Alan Albright.

The FBI conducted this investigation together with investigators from DEA Diversion and the Cedar Park Police Department.  Assistant U.S. Attorney Mark Frazier is prosecuting this case.

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SAN ANTONIO – A federal judge sentenced 19-year-old Iron Youth member and Smiley resident Caleb Nathaniel Oliver today to 18 months imprisonment for unlawfully possessing a machine gun.

In addition to the prison term, U.S. District Judge David A. Ezra ordered that Oliver be placed on supervised release for a period of three years after completing his prison term.

“The U.S. Attorney’s Office will continue to dedicate resources to the pursuit of those individuals who violate federal law by illegally possessing firearms, such as the machine gun in this case,” said U.S. Attorney Ashley C. Hoff. “I am proud of the collective efforts of our law enforcement partners who work so tirelessly to root out violent extremism and keep the public safe from harm.”

On March 18, 2021, Oliver pleaded guilty to the charge and admitted that he purchased a fully automatic machine gun from an undercover officer for $1,000 on February 5, 2021.   Court documents reflect that Oliver is a member of the group called Iron Youth, a racially motivated violent extremist group that advocates violence in the furtherance of its objectives.  Beginning in September 2020, Oliver had several meetings with undercover officers to discuss the purchase of the machine gun. 

"Without the teamwork of the FBI Joint Terrorism Task Force and our local and state law enforcement partners in arresting this subject, we may have had yet another event of mass violence,” said Special Agent in Charge Christopher Combs, FBI San Antonio Division. “The FBI is committed to doing everything we can to protect our community from violent extremists, regardless of ideology or motivation.”

The FBI conducted this investigation with assistance from the Wilson County Sheriff’s Office, Gonzales County Sheriff’s Office and Texas Rangers.  Assistant U.S. Attorneys William R. Harris and Mark Roomberg prosecuted this case. 

This case falls within the purview of the Attorney General’s Task Force to Combat Violent Anti-Government Extremism. Launched in June 2020, the Task Force is dedicated to supporting the investigation and prosecution of any person or group who commits violence in the name of an anti-government ideology.

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EL PASO – Federal authorities in El Paso are seeking a civil injunction against 40-year-old Wayzata, Minnesota resident Scott Boynton and his business, Boynton Companies, Inc, d/b/a RELYmedia, in an effort to combat alleged fraud related to the coronavirus (COVID-19) pandemic.

The government is employing a statute that permits federal courts to issue injunctions to prevent harm to potential victims of fraudulent schemes. The purpose of the civil injunction is to stop Boynton and RELYmedia, from advertising, distributing, transporting or selling any mask or face covering purported to be an authentic 3M 1860 N95 mask.  If approved by the Court, the civil injunction will prevent RELYmedia from selling counterfeit 3M masks in an effort to protect the public from unknowingly purchasing ineffective or substandard personal protective equipment. 

On December 7, 2020, Department of Homeland Security officials seized over 100,000 counterfeit 3M 1860 N95 masks sold by Boynton through RELYmedia.  Those masks were discovered inside a U.S. Customs bonded warehouse in El Paso.  Court records state that the seized masks, as well as other masks offered for sale and sold by Boynton, were counterfeit 3M N95 masks exported from China. 

U.S. Attorney Ashley C. Hoff and Special Agent in Charge Erik P. Breitzke of Homeland Security Investigations’ (HSI) El Paso Field Office made today’s announcement. 

The Department of Justice recommends that Americans take the following precautionary measures to protect themselves from known and emerging scams related to COVID-19:

• Independently verify the identity of any company, charity, or individual that contacts you regarding COVID-19.
• Check the websites and email addresses offering information, products, or services related to COVID-19.  Be aware that scammers often employ addresses that differ only slightly from those belonging to the entities they are impersonating.  For example, they might use “cdc.com” or “cdc.org” instead of “cdc.gov.”
• Be wary of unsolicited emails offering information, supplies, or treatment for COVID-19 or requesting your personal information for medical purposes.  Legitimate health authorities will not contact the general public this way.
• Do not click on links or open email attachments from unknown or unverified sources.  Doing so could download a virus onto your computer or device.
• Make sure the anti-malware and anti-virus software on your computer is operating and up to date.
• Check online reviews of any company offering COVID-19 products or supplies.  Avoid companies whose customers have complained about not receiving items.
• Research any charities or crowdfunding sites soliciting donations in connection with COVID-19 before giving any donation.  Remember, an organization may not be legitimate even if it uses words like “CDC” or “government” in its name or has reputable looking seals or logos on its materials.  For online resources on donating wisely, visit the Federal Trade Commission (FTC) website.
• Be wary of any business, charity or individual requesting payments or donations in cash, by wire transfer, gift card or through the mail.  Don’t send money through any of these channels.
• Be cautious of “investment opportunities” tied to COVID-19, especially those based on claims that a small company’s products or services can help stop the virus.  If you decide to invest, carefully research the investment beforehand.  For information on how to avoid investment fraud, visit the U.S. Securities and Exchange Commission (SEC) website.

This enforcement action is being handled by Assistant U.S. Attorneys Shane Wagman Romero and Eddie Castillo.  HSI’s El Paso Field Office is conducting the investigation.  The claims made in the complaint are allegations that, if the case were to proceed to trial, the government must prove to receive a permanent injunction against the defendant.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on DOJ’s response to the pandemic, please visit https://www.justice.gov/coronavirus.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

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AUSTIN – U.S. District Judge Lee Yeakel today sentenced 34-year-old Austin resident Juan Angel Aguirre aka “Larry Aguirre” to 235 months in federal prison followed by three years of supervised release for supplying traffickers with multiple kilograms of narcotics that were distributed throughout the Austin area.

Aguirre is one of 19 defendants who have been convicted on federal drug trafficking charges based on this indictment.  The defendants conspired to distribute more than five kilograms of cocaine, more than one kilogram of heroin, methamphetamine and other narcotics in Austin from December 2016 to September 2019.  During this investigation, authorities seized approximately 20 kilograms of methamphetamine, seven kilograms of cocaine, five kilograms of heroin and more than $594,000 in cash and assets attributed to this drug trafficking organization. 

One defendant, Luis Alberto Mota, Jr, is awaiting sentencing next month.  The other 18, including Aguirre, have received prison sentences ranging from nine months to 235 months.

“The prosecutions of Juan Angel Aguirre and his codefendants have resulted in the dismantling of a major drug trafficking organization and the removal of a significant criminal element from the streets of Austin,” said U.S. Attorney Ashley C. Hoff.  “This case is an excellent example of the effectiveness of our Organized Crime Drug Enforcement Task Force (OCDETF) program in combatting the scourge of drug trafficking and the related crimes drug trafficking generates in our community.”

Special Agent in Charge Daniel C. Comeaux of the Drug Enforcement Administration’s (DEA) Houston Division, Interim Austin Police Chief Joseph Chacon, Cedar Park Police Chief Mike Harmon, Texas Department of Public Safety Director Steven McCraw, Hays County Sheriff Gary Cutler and Special Agent in Charge Richard D. Goss of the IRS-Criminal Investigation’s (IRS-CI) Houston Field Office joined U.S. Attorney Hoff in making today’s announcement.

This case resulted from an investigation conducted by the DEA, Austin Police Department, Cedar Park Police Department, Texas Department of Public Safety, Hays County Sheriff’s Office and IRS-CI.  Assistant U.S. Attorney Douglas Gardner is prosecuting this case.

This prosecution resulted from an OCDETF investigation called Operation “No Big Deal.”  OCDETF identifies, disrupts and dismantles the highest-level drug traffickers, money launderers, gangs and transnational criminal organizations that threaten the U.S. by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks.

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EL PASO –El Paso Ear, Nose & Throat Associates (EPENT) has agreed to pay $750,000 to settle allegations that they violated the False Claims Act by billing Medicaid, Medicare and other federal healthcare programs by upcoding evaluation and management codes.

The government alleged that EPENT knowingly caused false claims to be submitted to federal healthcare programs by billing for services at a higher rate of reimbursement than they would be entitled to for the service actually provided. This scheme is commonly referred to as “upcoding.”

“Providers who line their pockets by over-billing for medical care increase medical costs for all of us and drain critical funds from Medicare and other government health programs,” said U.S. Attorney Ashley C. Hoff.  “We will continue to hold accountable medical professionals who undermine our healthcare system by over-billing for care.”

The Defense Health Agency (DHA) supports the delivery of TRICARE, the program that provides integrated, affordable, high-quality healthcare services to more than 9.6 million uniformed service members, retirees and their families. TRICARE was one of the government health programs that was defrauded in this case.

“Any time the government is defrauded, it is unacceptable to the American taxpayer. The victims in this case have served or continue to serve our Nation, and also includes their family members. We owe it to our beneficiaries that our commitment and care to them is unwavering, and we are grateful to the Department of Justice for their enduring commitment to root out waste, fraud and abuse and hold those who break the law accountable,” said DHA Director Lt. Gen. Ronald J. Place, M.D.

“Unethical medical providers who line their pockets by over-billing for medical care increase medical costs for all of us and drain critical funds from Medicare and other government health programs,” said Acting Special Agent in Charge Jeffrey Coburn.  “The FBI will continue to hold accountable medical professionals who undermine our healthcare system through fraudulent over-billing for care.”

The matter was investigated by the FBI, U.S. Department of Health and Human Services Office of Inspector General, Defense Criminal Investigative Service and the Texas Attorney General’s Office Civil Medicaid Fraud Division.

The claims asserted against the defendants are allegations only; there has been no determination of liability.

Assistant U.S. Attorney Eduardo R. Castillo handled this matter.

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MIDLAND – A federal judge today sentenced 65-year-old Thomas Alan Arthur to 40 years in federal prison for operating a website dedicated to publishing writings that detailed the sexual abuse of children.

On January 21, 2021, a jury convicted Arthur of three counts of trafficking in obscene visual representations of the sexual abuse of a child, five counts of trafficking in obscene text stories about the sexual abuse of children and one count of engaging in the business of selling obscene matters involving the sexual abuse of children.

According to trial evidence, Arthur began operating the Mr. Double website in 1996, and began charging members for access to the site in 1998. The website was dedicated to publishing writings that detail the sexual abuse of children, including the rape, torture and murder of infants and toddlers. The evidence at trial showed that all submissions for publication were reviewed and approved by Arthur before he posted them on the site. Some of the author pages contained drawings depicting children engaged in sexually explicit conduct. Evidence at trial showed that the website was Arthur’s sole source of income for more than 20 years. The site was taken offline in November 2019 when the FBI executed a search warrant at his residence near Terlingua, where Arthur administered the site. Pursuant to our Mutual Legal Assistance Treaty with the Netherlands, additional evidence was obtained from the server in the Netherlands where the site was hosted.

Additionally, according to court documents and statements made at the sentencing, Arthur sexually assaulted two females who came forward during the investigation of this case. Court documents and statements made in court showed that in approximately 1992, Arthur drugged an adult woman living with him, sexually assaulted her and video recorded it. In another instance, in the early 1980s, Arthur molested a girl when she was four or five years old, who was the daughter of a friend and business associate.

Nicholas L. McQuaid, Acting Assistant Attorney General of the Justice Department’s Criminal Division, U.S. Attorney Ashley C. Hoff and Acting Special Agent in Charge Jeffrey Coburn of the FBI’s El Paso Division made today’s announcement.

“The despicable, exploitative behavior of the defendant in this case is nothing short of shocking.  The 40-year sentence imposed by the court reflects the extremely serious nature of the criminal conduct,” said U.S. Attorney Hoff.  “I am very grateful for the efforts of our law enforcement partners and prosecutors who worked so tirelessly to hold Arthur accountable for his crimes.”  Hoff also thanked the U.S. Attorney’s Office in the Middle District of Tennessee for their assistance with this prosecution.

In addition to the prison term, U.S. District Judge David Counts ordered that Arthur pay a $50,000 fine and be placed on supervised release for a period of three years after completing his prison term.  Judge Counts also granted the criminal forfeiture to the government of Arthur’s residential property, cash proceeds, the Mr. Double website and numerous electronics he used to carry out his scheme.

“This repugnant exploitation of innocent children has no place in society. The FBI will vigorously pursue anyone that profits on the publishing of visual and textual depictions of the sexual abuse and murder of children. Today’s sentencing shows that we will work tirelessly to prevent the exploitation of children to the fullest extent of the law,” said Acting FBI Special Agent in Charge Coburn.  “FBI is committed to collaborating with our law enforcement partners to aggressively investigate these types of cases to ensure predators and their facilitators are found in our communities and face justice.”

The FBI, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Texas Department of Public Safety and Brewster County Sheriff’s Office investigated the case.  Trial Attorney Austin M. Berry of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Assistant U.S. Attorney Monica Morrison and Assistant U.S. Attorney Fidel Esparza prosecuted the case with assistance from the Justice Department’s Office of International Affairs.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.

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EL PASO – Alex Barron, a 30-year-old Horizon City resident, admitted in federal court today to being a convicted felon in possession of firearms and ammunition.

Appearing before U.S. Magistrate Judge Anne T. Berton this afternoon, Barron pleaded guilty to one count of felon in possession of a firearms and ammunition.  According to court documents,

federal authorities executed a series of search warrants on May 8, 2020, including a search warrant for the defendant’s residence, in connection with an investigation into the posting on a social media application the day before of a photograph of an AR-15 style rifle with a caption stating “…#watchoutwalmartimcoming #droplikeflys…”  Authorities arrested Barron after recovering an assortment of ammunition and multiple firearms, including one fully automatic firearm equipped with a suppressor.

In court today, the defendant stated his post in which he threatened violence at Walmart was a ploy to attract attention on social media and not to be actually carried out.   Barron’s criminal history reveals a 2012 felony conviction for a drug-related offense in El Paso County.

Barron faces up to 10 years in federal prison.  Sentencing has yet to be scheduled.  Barron has remained in federal custody since his arrest on May 8, 2020.

U.S. Attorney Ashley C. Hoff and Acting Special Agent in Charge Jeffrey Coburn of the FBI’s El Paso Division made today’s announcement.

The FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives, El Paso Police Department and the Texas Department of Public Safety investigated this case.  Assistant U.S. Attorney Ian Hanna is prosecuting this case.

This case is being prosecuted as part of the joint federal, state and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

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SAN ANTONIO – A federal jury today convicted 40-year-old Christopher Charles Perez, aka “Christopher Robbins,” with perpetrating a COVID-19-related hoax in April of last year.

Jurors convicted Perez on two counts of 18 U.S.C. § 1038, which criminalizes false information and hoaxes related to biological weapons.  Evidence presented during trial revealed that Perez posted two threatening messages on Facebook in which he claimed to have paid someone who was infected with COVID-19 to lick items at grocery stores in the San Antonio area because he was trying to scare people away from visiting the stores.  On April 5, 2020, a screenshot of the initial posting was sent by an online tip to the Southwest Texas Fusion Center (SWTFC), which then contacted the FBI office in San Antonio for further investigation.  To be clear, the threat was false; Perez did not pay someone to intentionally spread coronavirus at grocery stores, according to investigators and Perez’s own admissions.

“Our community feels safer when we are free from this type of hoax threat.  When Perez posted his threats on-line, his hoax posed a very real risk of spreading panic throughout our community at a time when the public was already facing the difficult challenges of a global pandemic. The jury verdict today affirms that hoax threats such as this merit investigation and prosecution,” said U.S. Attorney Ashley C. Hoff.

Perez faces up to five years in federal prison for each count of conviction. Sentencing is scheduled for September 20, 2021, before U.S. District Judge David A. Ezra.     

“The verdict in this case sends a clear message that the FBI and our law enforcement partners take threats seriously,” said Special Agent in Charge Christopher Combs of the FBI’s San Antonio Division.  “Making threats, even those which are not carried out, poses a significant cost on our community. Law enforcement agencies have limited resources and responding to hoax threats diverts officers and costs taxpayers. Perez’s threats, made during a pandemic, targeting a business making every effort to provide food, medicine and vital necessities to our community, likely added to the fear and confusion during a difficult time.”

The FBI’s Joint Terrorism Task Force, along with Weapons of Mass Destruction personnel, conducted this investigation.  Assistant U.S. Attorneys Mark Roomberg, William R. Harris and Kelly Stephenson are prosecuting the case.

If you think that you or your family are the victims of a scam or attempted fraud involving coronavirus, you can report it without leaving your home.  Please contact the National Center for Disaster Fraud Hotline at 866-720-5721 or by email at [email protected].  If it’s a cyber scam, you may also submit your complaint at www.ic3.gov.

Learn more about coronavirus-related frauds, as well as combatting and reporting the hoarding and price gouging of critical supplies, from the Department of Justice: https://www.justice.gov/coronavirus.

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SAN ANTONIO – Keith Alan Seguin, a 55-year-old former civilian employee at Randolph Air Force Base in San Antonio, admitted this morning to receiving millions of dollars in bribes in connection with a government contract fraud scheme that spanned more than a decade and impacted hundreds of millions of dollars in contract awards.

Appearing before U.S. District Judge Fred Biery, Seguin pleaded guilty to one count of conspiracy to commit wire fraud and one count of tax fraud and false statements. 

According to formal charges, the QuantaDyn Corporation, a software engineering company based in Ashburn, Virginia; its owner, David Joseph Bolduc, Jr, age 60 of Herndon, Virginia; Rubens Wilson Fiuza Lima, age 72 of Atlanta, Georgia; and Seguin all conspired to secure government contracts.  Seguin used his position to steer lucrative contracts and sub-contracts to QuantaDyn for aircraft and close-air-support training simulators. Seguin, who was intimately involved in the government contracting process, leaked confidential competitor proposals to a prime contractor who would then subcontract the work to QuantaDyn.  He also leaked confidential government budget information to prime contractors and to QuantaDyn, enabling them to maximize profits at government expense.  Seguin admitted to accepting more than $2.3 million in bribes from Bolduc and QuantaDyn from 2007 to 2018. 

Seguin faces up to 20 years in federal prison for conspiracy to commit wire fraud and up to three years in federal prison for tax fraud and false statements.  He remains on bond pending sentencing scheduled for December 7, 2021.

On September 15, 2020, Judge Biery placed QuantaDyn on probation for five years and ordered the corporation to pay a $6.3 million fine and more than $37 million in restitution for conspiracy to commit wire fraud.  In addition to the fines and restitution, Judge Biery ordered QuantaDyn to pay a forfeiture money judgment in the amount of $22,834,526.31 as well as the forfeiture of seized funds in corporate accounts totaling over $7 million.

U.S. Attorney Ashley C. Hoff; Special Agent in Charge Jamie Willemin of the General Services Administration—Office of the Inspector General (GSA-OIG), Greater Southwest and Rocky Mountain Investigations Division; Special Agent in Charge Richard D. Goss of the Internal Revenue Service-Criminal Investigation (IRS-CI), Houston Field Office; Special Agent in Charge Michael Mentavlos of the Defense Criminal Investigative Service (DCIS), Southwest Field Office; Special Agent in Charge Ray Rayos of the U.S. Army Criminal Investigation Command, Southwestern Fraud Field Office (USACID); and, Special Agent in Charge Blair Holmstrand of the Air Force Office of Special Investigations (AFOSI), Procurement Fraud Detachment 3 in San Antonio made today’s announcement.

Bolduc and Fiuza Lima are charged by federal indictment with one count of conspiracy to defraud the U.S., one count of conspiracy to commit wire fraud and one count of conspiracy to commit money laundering.  Upon conviction, Bolduc and Fiuza Lima would face up to five years imprisonment for conspiracy to defraud the U.S., up to 20 years for conspiracy to commit wire fraud and up to 20 years for conspiracy to commit money laundering.  They would also face up to $1 million in fines.  Jury selection for Bolduc and Fiuza Lima is scheduled for January 24, 2022.

The indictment further alleges that a portion of the bribe money paid to Seguin was laundered through Fiuza Lima’s business, Impex, Inc., for a 10 percent fee. 

The GSA-OIG, IRS-CI, DCIS, USACID, and AFOSI continue to investigate this case.  Individuals who may have information about this scheme or these defendants are asked to call the GSA-OIG fraud reporting hot line at (800) 424-5210, send an email to [email protected], or go online to www.gsaig.gov and click on the “report FRAUD” link.  U. S. Attorney Hoff extends her appreciation to the U.S. Attorney’s Offices in the Eastern District of Virginia, Southern District of Ohio and Northern District of Georgia for their valuable assistance.

Assistant U.S. Attorney William F. Lewis, Jr, Special Assistant U.S. Attorney Jay Porier and Assistant U.S. Attorney Alan Buie are prosecuting this case.

It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt.  Bolduc and Fiuza Lima are presumed innocent until proven guilty in a court of law.

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DEL RIO – A federal judge sentenced 50-year-old Eduardo Riojas Villarreal of San Antonio to 21 months in federal prison yesterday for stealing money from the Kickapoo Traditional Tribe of Texas (Kickapoo).

In addition to the prison term, U.S. District Court Judge Alia Moses ordered Villarreal to pay $167,109.41 in restitution to the Kickapoo and be placed on supervised release for a period of three years after completing his prison term. 

On September 9, 2019, Villarreal pleaded guilty to one count of embezzlement and theft from Indian organizations.  According to court documents, Villarreal served as an accounts payable manager for the Kickapoo for approximately four years beginning in April 2017.  During that time, Villarreal wrote fraudulent checks payable to his wife from the Kickapoo general operating account, which is funded primarily by revenue from the Lucky Eagle Casino. He deposited those checks into his own personal bank account.  Villarreal admitted there was no legitimate basis for issuing these checks and that his wife knew nothing about his scheme.

The FBI conducted this investigation.  Assistant U.S. Attorneys Sydni Connell, Sarah Spears and Justin Chung prosecuted this case. 

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DEL RIO – Sixteen Partido Revolutionario Mexican (PRM) members and associates, primarily from the Eagle Pass area, face federal drug trafficking charges.

A federal grand jury indictment unsealed today charges the following defendants with conspiracy to possess with intent to distribute a controlled substance:

Name

Age

Residence

Victor Hinojosa aka “Zuko”

31

Eagle Pass

Jesus Espinoza

29

Eagle Pass

Francisco Espinoza

25

Eagle Pass

Kevin Ritchie aka “K-Dog”

32

FCI Beaumont

Martha Ritchie

60

Eagle Pass

Clinton Ritchie

31

Eagle Pass

Carlos Saldana aka “Lowz”

29

Eagle Pass

Yvonne Rodriguez Torres

39

Eagle Pass

Luis Torres-Marquez

46

Eagle Pass

Danny Suarez

37

Eagle Pass

Ernesto Magdaleno

52

Eagle Pass

Eduardo Gloria

30

Eagle Pass

Armando Ramirez aka “Mando”

32

Eagle Pass

Carlos Rodriguez-Urrabazo aka “Looney”

38

Eagle Pass

Rodolfo Jimenez

42

Eagle Pass

Louis Iglesias aka “Wicho”

50

TDCJ Livingston

The indictment alleges that the defendants conspired since March 2019 to distribute narcotics. All of the listed defendants have been arrested with the exception of Kevin Ritchie and Louis Iglesias who were already in custody. Authorities also seized cocaine, firearms, and cash attributable to the organization.

U.S. Attorney Ashley C. Hoff; Drug Enforcement Administration (DEA) Special Agent in Charge Daniel C. Comeaux, Houston Division; Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division; and Homeland Security Investigations (HSI) Acting Special Agent in Charge Craig Larrabee made today’s announcement.

Assistant U.S. Attorney Stephen Kam is prosecuting this case.  The DEA and FBI led this Organized Crime Drug Enforcement Task Force (OCDETF) investigation called Operation Tequila Sunset. Homeland Security Investigations, U.S. Marshals Service, U.S. Border Patrol, Texas Department of Public Safety, Eagle Pass Police Department, and the Sheriff’s Offices from Maverick, Dimmitt and Val Verde counties assisted with today’s arrests. 

It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt.  The defendants are presumed innocent until proven guilty in a court of law.

This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation.  OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

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SAN ANTONIO – Three separate healthcare providers within the Western District of Texas have agreed to pay a collective $1,056,340.50 to resolve liability under the False Claims Act for the alleged improper billing of electro-acupuncture devices.

These providers – Ledger Foot & Ankle, P.A of Harker Heights, Superior Physical Medicine of Round Rock and Precision Spine and Pain Management of San Antonio – billed Medicare and/or TRICARE for the implantation of neuro-stimulators, a surgical procedure that usually requires an operating room and is reimbursable by federal healthcare programs. In these matters, the procedure billed actually involved a non-surgical, non-invasive application of the devices that is non-reimbursable by federal healthcare programs.

Between February 2018 and January 2020, Dr. Harold Ledger, DPM, of Harker Heights, through his practice, Ledger Foot & Ankle, P.A., billed Medicare for the application of ANSiStim devices to beneficiaries as though they were implantable neurostimulators.  Certain Medicare beneficiaries were identified as also having TRICARE benefits that were further billed to the program as the secondary insurer.  Dr. Ledger will pay a total of $535,000.00 to resolve his liability under the False Claims Act.

Between December 2016 and September 2018, SPR Medical Group (formerly known as Atlas Medical Group), d/b/a Superior Physical Medicine, (“Superior”) billed Medicare for the application of ANSiStim and STIVAX devices as though they were implantable neurostimulators.  Following a Medicare audit of two neurostimulation procedures, Superior initiated a full repayment of the Medicare funds received for those two claims and conducted an internal audit of all claims.  Superior self-disclosed claims improperly billed and has agreed to pay a total of $338,150.50 to resolve any potential liability under the False Claims Act.

Between March 1 and April 2019, Dr. Yurii Borshch, through his practice Precision Spine and Pain Management, billed Medicare for the application of ANSiStim devices to beneficiaries as though they were implantable neurostimulators.  During the pendency of the investigation and settlement negotiations, Dr. Borshch initiated refund payments to Medicare for the identified claims and paid a total of $183,190.00 to resolve potential liability under the False Claims Act.

The settled civil claims are allegations only and do not constitute admissions of liability by any of the identified practitioners. 

These matters were investigated by the U.S. Department of Health and Human Services Office of the Inspector General.  All three settlements were negotiated on behalf of the government by Assistant U.S. Attorney Erin M. Van De Walle.

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SAN ANTONIO – A federal judge sentenced 48-year-old Deanna Bates Wehde of San Antonio today to 49 months in federal prison for stealing over $470,000 from the company she managed.

In addition to the prison term, Chief U.S. District Court Judge Orlando Garcia ordered Wehde to pay $471,006.30 in restitution and be placed on supervised release for a period of three years after completing her prison term. 

“Today’s prison sentence reflects the seriousness of the defendant’s breach of her employer’s trust and she is now being held accountable for her crime,” said U.S. Attorney Ashley C. Hoff. “The U.S. Attorney’s Office, working with our law enforcement partners, will continue to identify, investigate and prosecute those who take advantage of their employment positions to steal from and do harm to businesses.”   

On July 30, 2020, Wehde pleaded guilty to one count of wire fraud and one count of aggravated identity theft.  By pleading guilty, Wehde admitted that while employed by Stone Care of Texas between May 2016 and September 2018, she defrauded the company by using company credit cards issued in the names of former employees for business-related travel to make unauthorized purchases and cash withdrawals for her own personal use and benefit.

“Small businesses play an important part in maintaining and stimulating economic growth in our community,” said Christopher Combs, Special Agent in Charge, FBI, San Antonio Division. “FBI San Antonio is committed to protecting businesses from theft and fraud schemes which threaten their stability and the health of our local economies.”  

The FBI investigated this case.  Assistant U.S. Attorney William R. Harris prosecuted this case on behalf of the government.

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SAN ANTONIO – A federal grand jury indictment unsealed today charges five individuals for laundering nearly $1 million derived from a Business Email Compromise (BEC) scheme. FBI agents and local authorities arrested the defendants yesterday without incident.

The indictment charges the defendants with one count of conspiracy to commit money laundering:  47-year-old Olufemi Nathaniel Itiowe, aka Baloi Maputo Oldemiro and John Koffi of Brooklyn, New York; 43-year-old Stacey Allison Ault, aka Tammy Botha and Cindy Theron of Brooklyn, New York; 38-year-old Enso Anderson of Long Branch, New Jersey; 33-year-old Edward Chance Johnson of Yukon, Oklahoma; and 52-year-old Bona Wong of Las Vegas, Nevada. 

In a BEC scheme, scammers target businesses and individuals making wire transfer payments, especially those employees with access to company finances. The scammers trick the employees into wiring payments to bank accounts they believe belong to trusted partners but that are actually controlled by the fraudsters. Sometimes the scammers use computer intrusion techniques to alter legitimate payment request emails by changing the recipient bank accounts. Sometimes they send spoofed emails that appear to be from trusted partners.

The indictment alleges that the conspirators opened various bank accounts in the U.S. utilizing fraudulent identification documents.  The indictment also alleges that the conspirators fraudulently procured funds using the BEC fraud, then worked quickly to withdraw or transfer the funds into various other accounts, which prevented the victims and banks from reversing the transactions. The indictment focuses on funds largely derived from BEC schemes perpetrated against victims in Montana and Texas from October 2018 to September 2019.

U.S. Attorney Ashley C. Hoff and Christopher Combs, Special Agent in Charge, FBI, San Antonio Division, made the announcement.

Conspiracy to commit money laundering calls for up to 20 years in federal prison upon conviction. 

The FBI together with the IRS Criminal Investigation, U.S. Postal Inspection Service, New York Police Department, along with FBI New York, FBI Helena, Montana, FBI Oklahoma City and FBI Las Vegas conducted this investigation and made yesterday’s arrests.   Assistant U.S. Attorneys Kelly Stephenson and William F. Lewis Jr. are prosecuting this case. 

It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt.  The defendants are presumed innocent until proven guilty in a court of law.

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EL PASO – Wilver Jose Polanco-Alvarez, a 26-year-old Dominican Republic citizen residing in Miami, and Jose Eduardo Gomez Salas, a 25-year-old Dominican Republic citizen residing in New York, admitted in federal court today to using stolen personal identification information to obtain high-end electronic devices such as cell phones, laptop computers, tablets and watches.

Appearing before Senior U.S. District Judge David Briones this morning, both defendants pleaded guilty to one count of conspiracy to commit mail fraud and three counts of aggravated identity theft.

According to court documents, U.S. Customs and Border Protection officers at the Paso Del Norte International Bridge in El Paso encountered the defendants on April 11, 2020.  During an inspection, officers seized several electronic devices belonging to the defendants.  A subsequent review of Gomez’s iPhone revealed personal identification information of multiple individuals as well as photographs of Polanco assuming and utilizing different aliases in the form of fraudulent driver’s licenses from Indiana, Texas, California, New Mexico, South Carolina and Tennessee.

Further investigation revealed that the defendants operated a scheme in at least five different states with the help of others to purchase and activate cell phones and other electronic devices at retail stores using fraudulent identification documents and stolen personal identification information to include wireless account information.  After collecting the new phones and devices, Gomez mailed the items to 28-year-old alleged ringleader Marcos Andres Briceno-Romero in New Jersey.

Polanco and Gomez have remained in federal custody since their arrest in April 2020.  They face up to 20 years in federal prison on the conspiracy charge.  Each aggravated identity theft charge calls for a mandatory two years in federal prison.  Sentencing has yet to be scheduled. 

U.S. Attorney Ashley C. Hoff and Special Agent in Charge Erik P. Breitzke of Homeland Security Investigations’ (HSI) El Paso Division made today’s announcement.

Jury selection and trial has yet to be scheduled for three remaining co-defendants:  Briceno-Romero, 21-year-old Wiktoria Lawika of New York and 20-year-old Justin Brito of New York.

HSI, U.S. Secret Service and U.S. Customs and Border Protection investigated this case.  Assistant U.S. Attorney Sarah Valenzuela is prosecuting this case.

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SAN ANTONIO – A federal judge sentenced Former Karnes County Sheriff’s Deputy Oswaldo Bernal today to 32 months in federal prison for straw purchasing approximately 40 firearms that were subsequently trafficked to Mexico. 

In addition to the prison term, U.S. District Court David A. Ezra ordered the San Antonio resident to pay a money judgment in the amount of $7,191.96 and be placed on supervised release for a period of three years after completing his prison term. 

“Bernal betrayed his badge. He knowingly purchased handguns for an individual he knew could not legally purchase them in the U.S. and who would smuggle them into Mexico,” said U.S. Attorney Ashley C. Hoff.  “I could not agree more with Judge Ezra’s comments in court today that if any member of the public were to have purchased this many firearms in such a short time period, it would have raised red flags. But because Bernal was a law enforcement officer, he could purchase those weapons without raising suspicion.”

On March 11, 2021, Bernal pleaded guilty to one count of aiding and abetting smuggling goods from the U.S.  By pleading guilty, Bernal admitted that while employed as a Karnes County Deputy Sheriff, he purchased the firearms in 2020 from San Antonio firearms dealers under a discount program for law enforcement officers called the “Blue Label Program.”  Bernal then sold those weapons to Juan Cesar Fabian Ayala-Melendez, a native of Monterrey, Mexico who was illegally residing in the U.S. 

“Public trust is a critical element of accomplishing law enforcements mission. This former officer stepped outside of that public trust by committing crimes and received the proper treatment from the justice system,” said Special Agent in Charge Fred Milanowski of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Houston Field Office.

Ayala has admitted that he smuggled the firearms into Monterrey through a Laredo-based international shipping company.  On March 4, 2021, Ayala pleaded guilty to one count of  conspiracy to launder monetary instruments, namely the proceeds of the weapons trafficking conspiracy, and one count of being an alien in possession of a firearm.  He remains in federal custody awaiting sentencing that is scheduled for July 19, 2021.

A third co-defendant who also remains in federal custody, Yesenia Berenice De La Cerda Mendoza, faces federal charges for her role in the weapons trafficking and money laundering scheme.  Her re-arraignment is set for June 17, 2021 before U.S. Magistrate Judge Richard B. Farrer in San Antonio.

The ATF investigated this case.  Assistant U.S. Attorneys Matthew W. Kinskey and Fidel Esparza III prosecuted this case.

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SAN ANTONIO – A former office manager of a prominent local dermatology practice waived pre-trial detention today and agreed to remain in federal custody pending trial. She is charged with defrauding the medical practice of nearly $350,000 from patient billings and employee profit sharing accounts.

A federal grand jury indictment charges 74-year-old Patricia Ann Doucet with 10 counts of wire fraud, one count of bank fraud, one count of access device fraud and two counts of aggravated identity theft.  

The indictment alleges that from July 2012 to February 2020, Doucet defrauded her former employer, the Dermatology & Laser Center of San Antonio. According to the indictment, the medical practice’s owner and operator organized and conducted a non-profit educational symposium on regenerative medicine in San Antonio in 2012.  A bank account was established to collect contributions for the symposium event.  That account was to be closed at the conclusion of the symposium. But Doucet, in her capacity as office manager, kept the account open without permission.

The indictment alleges that in July 2012, Doucet began to embezzle checks and cash paid to the dermatology practice by depositing them into the symposium account. She altered a signature stamp utilized by the practice for its business account or fraudulently endorsed checks by forging the owner’s signature. Doucet also stole money from the practice’s profit-sharing account that was designed to automatically issue checks to cover taxes for the employee’s profit share. Rather than directing those checks to the IRS, Doucet instead deposited those checks into the symposium account. Doucet then used the symposium account as her slush fund for international and domestic travel, property payments, meal purchases and other personal expenses on credit cards she fraudulently opened in the owner’s name.

The bank fraud charge upon conviction calls for up to 30 years in federal prison. The wire fraud charges upon conviction call for up to 20 years in federal prison per count.  The aggravated identity theft charges upon conviction call for a mandatory two years in federal prison, consecutive to any other sentence imposed.

U.S. Attorney Ashley C. Hoff and FBI Special Agent in Charge Christopher Combs, San Antonio Field Office, made today’s announcement.

FBI agents arrested Doucet in Shreveport, Louisiana on April 23, 2021. Doucet remains in federal custody.  No trial date has been scheduled.   

The FBI conducted this investigation.  Assistant U.S. Attorneys Matthew W. Kinskey, Joseph E. Blackwell and Tony Franco are prosecuting this case.

It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt.  The defendant is presumed innocent until proven guilty in a court of law.

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AUSTIN – A federal judge sentenced 45-year-old Christopher Matthew Meredith of Shawnee, Kansas to 14 years in federal prison today for his scheme to defraud investors of more than $6.8 million.

In addition to the prison term, U.S. District Judge Robert Pitman ordered Meredith to pay $6,820,510.50 in restitution and to be placed on supervised release for a period of three years after completing his prison term.  Following today’s hearing, Judge Pitman remanded Meredith to the custody of the U.S. Marshals Service to begin serving his prison term.

“This con artist targeted dozens of retirees and other investors who resided in the Brenham area as well as other parts of Texas and the country.  He obtained millions of dollars through blatant lies and then funded his lifestyle with their money,” said U.S. Attorney Ashley Hoff.  “I commend the prosecutors and our partners from the FBI and the Texas State Securities Board for bringing Meredith to justice and providing his victims with a measure of closure.”

On January 8, 2020, Meredith pleaded guilty to one count of securities fraud.  According to court documents, Meredith solicited investors for his company, Strategic Pharma, Inc. (SPI), under false pretenses from January 2015 to March 2017.  Meredith told investors that SPI had agreements, business operations, money and assets, knowing this was false.  For example, Meredith intentionally told investors that SPI had entered into agreements with the Department of Veterans Affairs (VA) and Biopharma Services, Inc. that would result in substantial revenue for SPI.  Meredith created a counterfeit VA contract and showed it to investors to prop up his lie.  Meredith also failed to disclose to his investors that he was under investigation for a similar investment fraud scheme in Florida where he eventually pleaded guilty to felony grand theft.  Meredith persuaded investors to give him money in return for shares of SPI stock.  Then he used investor funds for his own personal benefit, including the purchase of a home, and for the benefit of his relatives and associates.

“As a result of the relentless investigative efforts of the FBI San Antonio, Austin White Collar Task Force and the Texas State Securities Board, Meredith will no longer swindle members of our community out of their hard-earned dollars,” said Special Agent in Charge Christopher Combs of the FBI’s San Antonio Division.  “Over 100 investors were identified as victims in this case, many of whom lost their retirement savings. We hope they find some solace in seeing Meredith brought to justice and held accountable for his pattern of willful deceit."  

“The State Securities Board is pleased with today’s sentencing. The gravity of financial crime and its impact on our investors was well reflected with the imposition of a fourteen-year sentence for Mr. Meredith,” said Texas State Securities Board Commissioner Travis J. Iles.  “Texas investors saw justice today. The good work of the Western District’s U.S. Attorney's Office, the FBI, and our investigator made the result possible.”          

Assistant U.S. Attorneys Alan M. Buie, Daniel Castillo and Robert Almonte prosecuted this case.

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SAN ANTONIO – Tyler Light, a 25-year-old self-proclaimed militia member and Boogaloo Bois supporter, pleaded guilty to being a prohibited person in possession of a firearm.

Appearing before U.S. District Judge Fred Biery this morning, Light admitted to possessing firearms and ammunition while under a family violence protective order.  According to court documents, Light was placed under a permanent restraining order on November 3, 2020, for committing family violence.  Federal law prohibits a person who is the subject of a qualifying protection order from possessing a firearm or ammunition.  On December 1, 2020, Bexar County Sheriff’s deputies executed a state search and arrest warrant at Light’s residence for violation of the protection order and terroristic threats.  During the search, authorities seized a handgun from inside Light’s waistband as well as an AK-47 assault style rifle and an assortment of ammunition. 

Light remains in federal custody.  He faces up to 10 years in federal prison.  Sentencing is scheduled for August 31, 2020, before Judge Biery. 

U.S. Attorney Ashley C. Hoff, FBI Special Agent in Charge Christopher Combs, San Antonio Division and Bexar County Sheriff Javier Salazar made today’s announcement.

The FBI and the Bexar County Sheriff’s Office investigated this case.  Assistant U.S. Attorneys William R. Harris and Mark Roomberg are prosecuting this case.

This case is part of Operation Undaunted in the Western District of Texas, a program which draws on the partnerships among federal, state and local law enforcement coupled with prosecution authorities to tackle violent crime and protect the communities of central and west Texas.

This case is also part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone.   The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

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DEL RIO – A federal jury in Del Rio yesterday convicted 24-year-old Ludwin Artemio Santizo-Escobedo, a Guatemalan national, of assaulting a U.S. Border Patrol agent near Sanderson in 2019.

Evidence presented during the two-day trial revealed that during a traffic stop on State Highway 349 between Dryden and Sanderson on October 22, 2019, a U.S. Border Patrol agent discovered and attempted to arrest the defendant for illegally entering the country.  The defendant refused to be arrested and a fight ensued.  During the altercation, the defendant got the agent’s baton and repeatedly struck him in the body and head and once of his right eye.  The agent shot the defendant once in the left forearm and once in the left shoulder to subdue and arrest the defendant.

“This case illustrates the dangers the brave men and women of the United States Border Patrol face day in and day out while protecting our country,” said U.S. Attorney Ashley C. Hoff.  “Violent assaults on federal law enforcement cannot and will not be tolerated.”

“Every day Border Patrol Agents honorably serve our nation by securing the border. Too frequently, they endure physical assaults for carrying out their sworn duties,” said FBI Special Agent in Charge Christopher Combs, San Antonio Division. “Thanks to the exemplary work of the U.S. Attorney’s Office and FBI agents assigned to the Del Rio Resident Agency Office (RA) and El Paso FBI/Midland RA, Santizo-Escobedo will be held accountable for his violent assault.”

Santizo-Escobedo, who remains in custody, faces up to 20 years in federal prison.  Sentencing is scheduled for February 10, 2022, before U.S. District Judge Alia Moses in Del Rio.

The FBI conducted this investigation.  Assistant U.S. Attorneys John Kennedy and John Cooper prosecuted this case.

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EL PASO – Today federal authorities arrested 60-year-old Dr. Brian James August of El Paso for allegedly committing health care fraud and distributing controlled substances that resulted in the overdose deaths of five individuals. 

A 15-count federal grand jury indictment, unsealed upon his arrest, charges Dr. August with five counts of distribution of a controlled substance resulting in death or serious bodily injury, five counts of distribution of a controlled substance and five counts of health care fraud resulting in death.  Upon conviction, Dr. August faces 20 years to life in federal prison for the drug charges resulting in death; up to 20 years in federal prison for each of the remaining drug charges; and up to life in federal prison for each of the health care fraud charges.

The indictment alleges that between December 2012 and March 2018, Dr. August, who practiced Physical Medicine and Rehabilitation aka “physiatry,” prescribed and dispensed controlled substances, including methadone, fentanyl, hydromorphone, morphine, hydrocodone and oxycodone, outside the usual course of medical practice and without legitimate medical purpose, resulting in the deaths of five victims.  Dr. August is also alleged to have committed health care fraud by billing for services he did not perform.

U.S. Attorney Ashley C. Hoff, Special Agent in Charge Kyle Williamson of the Drug Enforcement Administration’s (DEA) El Paso Field Office and Acting Special Agent in Charge Jeffrey Coburn of the FBI’s El Paso Division made today’s announcement.

The DEA and the FBI with assistance from the Health and Human Services Office of Inspector General, Texas Department of Public Safety Special Investigation Services and the Medicaid Fraud Control Unit of Texas Attorney General’s Office conducted this Organized Crime Drug Enforcement Task Forces (OCDETF) investigation called “Operation Murder He Wrote.” 

OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF. 

Assistant U.S. Attorneys Debra Kanof and Phillip Countryman are prosecuting this case.

August remains in federal custody.  His initial appearance is expected to take place at 2 p.m. tomorrow before U.S. Magistrate Judge Anne T. Berton in El Paso.

An indictment is merely a charge and should not be considered as evidence of guilt.  The defendant is presumed innocent until proven guilty in a court of law.

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SAN ANTONIO – Yesterday U.S. District Judge David A. Ezra granted a motion by the U.S. Attorney’s Office for the Western District of Texas (USAO) to disburse $171,448.24 plus all accrued interest to the victims of the Four Winds fraud scheme. The proceeds will be applied to defendant Gary Cain’s restitution judgment, concluding three years of litigation over Cain’s only significant asset that was at one time valued at over $1.2 million.

In 2018, the USAO obtained a restraining order to prevent the sale of Cain’s house in Bentley Manor based on its belief that Cain used a sham company to hold title and avoid paying restitution. The USAO alleged that for over a decade Cain had resided in and made all payments for the house while utilizing a series of nominees, trusts, and companies to conceal his ownership interest.  Just three weeks prior to Cain’s sentencing in 2018, which would include $6.3 million in restitution owed to eight victims, the home was transferred to a newly created company purportedly managed by Cain’s brother with his two youngest daughters as the beneficial owners. Although several parties contested the order, the Court found that the company was the nominee of Gary Cain earlier this year.

“Our congressional mandate is to pursue restitution orders aggressively, recognizing the impact of crime on victims,” said U.S. Attorney Ashley C. Hoff. “The tenacity in this case demonstrates our commitment to recovering victim losses and should signal to defendants that cooperation, not concealment, is the preferred approach.”

During the enforcement action, the USAO joined nine other parties, five of which asserted some type of interest in the Bentley Manor house. The parties reached a settlement earlier this month, recognizing only two interests in the property in addition to the U.S.

In February 2018, a jury found Cain and former state senator Carlos Uresti guilty on all charges for their roles in a Ponzi scheme that defrauded investors out of millions of dollars after they made false representations in soliciting and later misleading investors concerning their investment into a company called Four Winds Logistics.  Prior to trial, co-conspirator and former Four Winds Logistics Chief Executive Officer Stanley P. Bates pleaded guilty to eight separate federal charges including securities fraud and money laundering. The defendants accepted investor funds but used them to pay earlier investors and personal expenses including gifts, travel, luxury automobiles, controlled substances, and to hire prostitutes. 

Through its Financial Litigation Unit (FLU), the USAO exercises several remedies to ensure that criminal defendants prioritize compensating their victims. The FLU also litigates against those defendants who hide their assets or refuse to pay. 

The USAO and the Department of Justice Tax Division worked together to reach this resolution, culminating with the Court agreeing with the government's motion for summary judgment establishing that the company selling the home was Cain's nominee.

Assistant U.S. Attorneys Steven Seward, Todd Keagle and Mark Tindall along with DOJ Tax Attorney Herb Linder handled the post-judgment enforcement proceedings.

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SAN ANTONIO – A federal judge yesterday sentenced 27-year-old former San Antonio police officer Sebastian Torres to eight years in federal prison followed by 15 years of supervised release for the distribution of obscene visual representations of the sexual abuse of children.

On February 26, 2020, the San Antonio resident pleaded guilty to one count of distribution of obscene visual representations of the sexual abuse of children and admitted he sent numerous obscene depictions of young children being sexually assaulted to another individual on October 31, 2019.  During this investigation, local authorities executed a search warrant at the defendant’s residence and seized the defendant’s cell phone which was used to commit the offense. 

U.S. Attorney Ashley C. Hoff and FBI Special Agent in Charge Christopher Combs, San Antonio Division made the announcement.

This investigation was initiated by the San Antonio Police Department and then proceeded as a joint investigation with the San Antonio FBI Child Exploitation and Human Trafficking Task Force.  Assistant U.S. Attorney Tracy Thompson prosecuted this case.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice.  Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims.  For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov. 

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SAN ANTONIO – Irene M. Scott, former bookkeeper and financial manager for a San Antonio private law firm, admitted to stealing approximately $1,696,996 from the law firm’s operating account today.

Appearing before U.S. District Judge Fred Biery, Scott pleaded guilty to three counts of wire fraud and one count of bank fraud.  According to court documents, Scott worked for the law firm between August 2011 and February 2020.  Her duties included issuing business credit cards to employees and closing those business credit card accounts when an employee separated from the firm.  She also maintained the firm’s financial ledgers and paid vendors and operating expenses. 

Scott admitted that from 2012 to 2020, she used three office credit cards assigned to employees or former employees to make non-firm related purchases totaling over $1.2 million. An estimated three-fourths of those funds went to support her husband’s outdoor lighting business.  She concealed on the firm’s financial ledgers credit card payments she made using the firm’s operating account. Scott also stole an estimated $417,000 by fraudulently withdrawing from the firm’s operating bank account about 200 times during a two-year period beginning in January 2018. She disguised those withdrawals in the firm’s ledger as vendor payments. Scott committed these fraudulent acts without the knowledge or authorization of any member of the firm.

Scott remains on bond.  Judge Biery scheduled sentencing for 9:30 a.m. on November 9, 2021.

U.S. Attorney Ashley C. Hoff and FBI Special Agent in Charge Christopher Combs, San Antonio Division made today’s announcement.

The FBI investigated this case.  Assistant U.S. Attorneys Matthew W. Kinskey and Joseph E. Blackwell are prosecuting this case.

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DEL RIO – Jorge Luis Monsivais, Jr., 23 of Eagle Pass, pleaded guilty today to federal charges in connection with a smuggling scheme that resulted in the deaths of five undocumented noncitizens.

Appearing before U.S. District Judge Alia Moses, Monsivais pleaded guilty to one count of conspiracy to transport illegal aliens resulting in death; one count of conspiracy to transport illegal aliens resulting in serious bodily injury; one count of conspiracy to harbor illegal aliens; one count of illegal alien transportation resulting in death; and one count of illegal alien transportation resulting in serious bodily injury.

According to court documents, Monsivais and others led Border Patrol agents and Dimmit County Sheriff deputies on a high-speed chase on June 17, 2018.  While traveling east bound on Highway 85 at speeds over 100 miles per hour, Monsivais crashed as he entered the town of Big Wells.  Four of the 13 undocumented noncitizens traveling with Monsivais at the time of the crash died at the scene and nine were transported to a hospital for medical care.  One died on the way to the hospital.  U.S. Border Patrol agents detained a total of 23 undocumented noncitizens involved in this scheme—21 Mexican nationals and two Honduran nationals.

Monsivais, who has remained in federal custody since June 17, 2018, faces up to life in federal prison.  Sentencing has yet to be scheduled.

U.S. Attorney Ashley C. Hoff, Homeland Security Investigations (HSI) Acting Special Agent in Charge Craig Larrabee, U.S. Border Patrol Del Rio Sector Chief Patrol Agent Austin Skero and Dimmit County Sheriff Marion Boyd made today’s announcement.

Four co-defendants have previously pleaded guilty in this case.  On July 29, 2019, 58-year-old Mexican citizen Marcial Gomez Santana pleaded guilty to conspiracy to transport illegal aliens resulting in death; conspiracy to transport illegal aliens resulting in serious bodily injury; conspiracy to harbor illegal aliens; and harboring illegal aliens for private financial gain.  On August 20, 2019, Marcial’s son and daughter, 24-year-old Rudy Gomez of Hockley and 22-year-old Johana Gomez of Houston, along with 48-year-old Mexican citizen Mariela Reyna all pleaded guilty to one count of conspiracy to harbor illegal aliens. Sentencing for those four defendants is scheduled for 10:00 a.m. on September 7, 2021. Marcial Gomez faces up to life imprisonment.  The remaining three defendants face up to 10 years in federal prison. 

HSI investigated this case together with the U.S. Border Patrol—Del Rio Sector and the Dimmit County Sheriff’s Office.  Assistant U.S. Attorneys Amy Hail and John Kennedy are prosecuting this case.

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AUSTIN – Today, authorities arrested 27-year-old Jean Claude Anthony Meama-Kajue of Austin for allegedly distributing a controlled substance containing fentanyl that resulted in a person’s overdose death in December of last year. 

A five-count indictment unsealed today charges Meama-Kajue with one count of distribution of a controlled substance containing fentanyl resulting in death and four counts of distribution of a controlled substance containing fentanyl.  Upon conviction, Meama-Kajue faces between 20 years and life in federal prison for the drug charge resulting in death and up to 20 years in federal prison for each of the remaining drug charges.

The indictment alleges that on December 13, 2020, Meama-Kajue possessed and sold a controlled substance containing fentanyl to an individual.  That individual subsequently died after consuming the narcotic.  Furthermore, the indictment alleges that the defendant distributed a controlled substance containing a detectable amount of fentanyl on four separate occasions in Austin earlier this year. 

U.S. Attorney Ashley C. Hoff, Special Agent in Charge Daniel C. Comeaux of the Drug Enforcement Administration’s (DEA) Houston Field Office, Acting Pflugerville Police Chief Jason Smith and Cedar Park Police Chief Mike Harmon made today’s announcement.

Meama-Kajue remains in federal custody.  His initial appearance is scheduled for 2:00 p.m. on Monday before U.S. Magistrate Judge Mark Lane in Austin.

The DEA Austin Tactical Diversion Squad, Pflugerville Police Department and the Cedar Park Police Department investigated this case.  Assistant U.S. Attorney Mark Marshall is prosecuting this case.

An indictment is merely a charge and should not be considered as evidence of guilt.  The defendant is presumed innocent until proven guilty in a court of law.

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SAN ANTONIO – Federal authorities have charged a pharmacy technician at the Veterans Affairs Medical Center in Kerrville (VAMC) with stealing hydrocodone and oxycodone prescriptions from the VAMC mailroom and from mailboxes at some 40 locations in Kerrville, Ingram and Center Point. 

A federal criminal complaint charges 35-year-old Kerrville resident Scott M. Brown with one count of theft of U.S. Mail.  According to the complaint, the Kerr County Sheriff’s Office received several theft reports from victims beginning in March 2021.  Victims reported that their prescriptions sent from the VAMC were missing.  According to the complaint, Brown allegedly stole packaged narcotics from inside the VAMC mailroom as well as residential mailboxes between March and April 2021.

U.S. Attorney Ashley C. Hoff; Drug Enforcement Administration (DEA) Special Agent in Charge Daniel C. Comeaux, Houston Field Office; U.S. Postal Inspection Service (USPIS) Inspector in Charge Adrian Gonzalez, Houston Division; U.S. Department of Veterans Affairs Office of Inspector General (VAOIG) Special Agent in Charge Jeffrey Breen, South Central Field Office; and Kerr County Sheriff L.L. Leitha made today’s announcement.

Upon conviction, Brown faces up to five years in federal prison.  He remains in custody awaiting a detention hearing scheduled for 10:45 a.m. on Monday in San Antonio before U.S Magistrate Judge Henry Bemporad.

The DEA, USPIS, VAOIG and the Kerr County Sheriff’s Office are investigating this case.  Assistant U.S. Attorney Priscilla Garcia is prosecuting this case.

A criminal complaint is merely a charge and should not be considered as evidence of guilt.  The defendant is presumed innocent until proven guilty in a court of law.

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EL PASO – A federal judge today sentenced 25-year-old El Paso resident Javier Ivan Rubio Morales to 30 years in federal prison for production of child pornography.

In addition to the prison term, Senior U.S. District Judge David Briones ordered that Rubio pay $30,000 in restitution and be placed on supervised release for a period of 10 years after completing his prison term.

“The significant sentence imposed today demonstrates that we will simply not tolerate this despicable and harmful conduct,” said U.S. Attorney Ashley C. Hoff.  “Working with our partners in law enforcement, we will continue to identify, apprehend and remove child predators from our communities.”

On February 11, 2021, Rubio pleaded guilty to one count of production of child pornography.  By pleading guilty, Rubio admitted that for approximately two years beginning in May 2018, he coerced two minor females, ages six and seven initially, to engage in sexually explicit conduct so that he could produce visual depictions of such conduct using his cell phone.

According to court records, federal and state authorities executed a search warrant at the defendant’s residence on May 22, 2020, and seized multiple electronic items.  A forensics examination of the seized items revealed the presence of multiple images and videos depicting the minors engaged in sexually explicit acts with an adult male. 

“This repugnant exploitation of innocent children has no place in society. HSI will vigorously pursue anyone involved in sexually abusing minor victims and producing visual depictions of the sexual abuse.  We will work tirelessly to prevent the exploitation of children to the fullest extent of the law,” said Homeland Security Investigations (HSI) Special Agent in Charge Erik P. Breitzke, El Paso.  “HSI is committed to collaborating with our law enforcement partners to aggressively investigate these types of cases to ensure predators are found in our communities and face justice.”

Rubio has remained in federal custody since his arrest in May 2020.

The HSI Cyber Crimes Group, with assistance from the El Paso County Sheriff’s Office, investigated this case.  Assistant U.S. Attorney Herbert Bunton prosecuted this case.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice.  Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims.  For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

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SAN ANTONIO – A San Antonio man stands charged with distributing a controlled substance containing fentanyl that resulted in a person’s overdose death in October of last year. 

A four-count federal grand jury indictment returned this afternoon charges 27-year-old Patrick James Hall with one count of conspiracy to possess with intent to distribute fentanyl resulting in death; one count of possession with intent to distribute fentanyl resulting in death; and two counts of possession with intent to distribute fentanyl.  

The indictment alleges that on October 28, 2020, the defendant possessed and sold fentanyl-laced pills to the victim who died after ingesting them.  The indictment also alleges that the defendant possessed with intent to distribute fentanyl on October 26, 2020 and November 19, 2020.

U.S. Attorney Ashley C. Hoff and Special Agent in Charge Daniel C. Comeaux of the Drug Enforcement Administration’s (DEA) Houston Field Office made today’s announcement.

Upon conviction, Hall faces between 20 years and life in federal prison for the conspiracy and substantive charges alleging a result of death and up to 20 years in federal prison for each of the remaining two drug charges.

The DEA, with assistance from the San Antonio Police Department, investigated this case.  Assistant U.S. Attorney Amy Marie Hail is prosecuting this case.

An indictment is merely a charge and should not be considered as evidence of guilt.  The defendant is presumed innocent until proven guilty in a court of law.

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AUSTIN – A federal judge in Austin today sentenced five individuals, including ringleader Beronica Rodriguez, aka Black Widow, Queen B and Baby B, to federal prison for their roles in a racketeering conspiracy that involved murder, carjacking, kidnapping, home invasion robberies, identity theft and drug trafficking. 

U.S. District Judge Lee Yeakel issued the following sentences:

• Beronica Rodriguez, age 42, received 336 months of imprisonment followed by five years of supervised release;
• Leon Castillo, aka Big Moe, age 34, received 276 months of imprisonment followed by five years of supervised release;
• Thomas Cisneros Jr., aka T, age 27, received 360 months of imprisonment followed by five years of supervised release;
• Gloriana Vega, aka Baby G, age 23, received 108 months of imprisonment followed by five years of supervised release; and
• Jacqelynn Aleman, aka Jackie, age 24, received 60 months of imprisonment followed by three years of supervised release.
   

“This opportunistic group used any means at their disposal to prey on our community for their own personal enrichment. The streets and homes of central Texas are safer now that these callous and violent offenders have been held accountable for their criminal enterprise,” said U.S. Attorney Ashley C. Hoff. “We hope these federal prison sentences will bring a certain measure of justice for the victims.”

All five defendants pleaded guilty to conspiracy to violate the Racketeering Influenced Corrupt Organization (RICO) statute.  According to court records, the defendants were part of a group responsible for numerous violent crimes in the Austin area to include an armed home-invasion robbery in Georgetown on October 18, 2016, during which several firearms were stolen.  One of the stolen firearms was used in the assault, kidnapping and murder of an individual on October 30, 2016.  The murder victim’s body and vehicle were then set on fire. 

In November 2016, members of the group were responsible for a string of crimes that included an attempted carjacking wherein a woman and her small child were shot at; an armed home-invasion robbery of an elderly woman; another armed home-invasion resulting in a woman being restrained and assaulted; and a carjacking at gunpoint of a man who was restrained and robbed by members of the group.

“The FBI would like to thank the U.S. Attorney’s Office, Austin Police Department, Texas Department of Public Safety and the Bastrop, Travis and Williamson County Sheriffs’ Offices for their partnership and unyielding dedication to work the long, hard hours required for this very complex investigation,” said FBI Special Agent in Charge Christopher Combs, San Antonio Division. “As a result of our collective efforts, members of this criminal organization will no longer plague and terrorize our communities in central Texas with their brazen acts of violence, drug trafficking, and kidnapping.”

The FBI, Austin Police Department, Travis County Sheriff’s Office, Texas Department of Public Safety, Bastrop County Sheriff’s Office and the Williamson County Sheriff's Office investigated this RICO case.  Assistant U.S. Attorneys Matt Harding, Keith Henneke, Dan Guess and Robert Almonte prosecuted this RICO case.

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EL PASO -- U.S. District Judge Kathleen Cardone today sentenced 40-year-old Barrio Azteca member and career offender William “Happy” Haywood of El Paso to 16 years in federal prison followed by five years of supervised release for conspiring to import and distribute methamphetamine and possession of a firearm by a person under indictment. 

On February 19, 2020, Haywood pleaded guilty to one count of conspiracy to import a controlled substance, one count of importation of a controlled substance, one count of conspiracy to possess with intent to distribute a controlled substance and one count of possession with intent to distribute a controlled substance. 

Judge Cardone sentenced Haywood to 15 years imprisonment on the drug charges.  She also sentenced Haywood to two years imprisonment, with one year to run consecutive to the drug case, based on a supervised release revocation for possession of a firearm by a person under indictment.  According to court records, Haywood was on supervised release for a period of three years for a federal firearms conviction when he committed the above drug offenses. 

According to court records, Customs and Border Protection officers at the Fabens Port of Entry arrested Brian Kizer, a 46-year-old U.S. citizen living in Juarez, Mexico, on May 21, 2019, while attempting to smuggle approximately three pounds of crystal methamphetamine into the U.S.   Kizer intended to deliver the methamphetamine to Haywood just as he had done on three prior occasions.  The FBI then conducted an operation culminating in a controlled delivery to Haywood at his residence.  Haywood paid Kizer about $3,600, then unsuccessfully attempted to dispose of the evidence just prior to being arrested by law enforcement.  

U.S. Attorney Ashley C. Hoff and FBI Acting Special Agent in Charge Jeffrey Coburn made today’s announcement.

“Today’s sentencing shows the FBI’s resolve to target individuals that are bringing methamphetamine and other dangerous drugs into the El Paso area,” said FBI Acting Special Agent in Charge Coburn.  “Today, along with our law enforcement partners, we have shown that distribution of this poisonous drug will not be tolerated and affirm our commitment in keeping our community safe.”

On the same day Haywood pleaded guilty to the charges, Judge Cardone sentenced Kizer to four years in federal prison followed by five years of supervised release and ordered him to pay a $250 fine after pleading guilty to conspiracy to import a controlled substance.

The El Paso FBI’s Safe Streets Task Force investigated this case.  Task Force agencies include: FBI, U.S. Customs and Border Protection West Texas, Texas Alcoholic Beverage Commission, U.S. Bureau of Prisons, Homeland Security Investigations, El Paso Police Department, El Paso County Sheriff’s Office, Texas Department of Criminal Justice–Office of Inspector General, Socorro Police Department and the El Paso Independent School District Police Department.  Assistant U.S. Attorney Michael Osterberg prosecuted this case.

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SAN ANTONIO – U.S. District Judge Fred Biery today sentenced 23-year-old Felipe Jesus Duron of Atascosa to 29 years in federal prison followed by 11 years of supervised release for coercing minors into engaging in sexually explicit conduct. 

“Thanks to the efforts of our law enforcement partners and the prosecutor in this case, the defendant will no longer be able to commit such unspeakable acts against children,” said U.S. Attorney Hoff.  “Today’s sentence reflects the seriousness of the defendant’s despicable conduct and shines a light on the strength of a 14-year-old victim who had the courage to report the defendant’s actions.  I commend the social media platform and National Center for Missing and Exploited Children for bringing this matter to the attention of law enforcement.”

On July 14, 2020, Duron pleaded guilty to one count of coercion and enticement of a child, one count of production of child pornography, one count of receipt of child pornography and one count of extortion.  According to court records, Duron used internet accessible devices between February 2019 and March 2019 to entice multiple minors, primarily ages 13 to 14, into sending nude photographs wherein they were engaged in sexually explicit conduct.  Duron used those photographs to extort the minors, claiming he would release the sexually explicit photographs to their family and friends if they did not provide additional images of sexual activity. He also required them to enter real time video chat rooms where they were coerced into performing sexual acts for adult males as Duron watched.

“The sentence imposed today shows the U.S. Justice Department’s commitment to ensure the safety and innocence of our nation’s children,” said FBI Special Agent in Charge Christopher Combs, San Antonio Division. “The FBI and its law enforcement partners remain dedicated to protecting our nation’s future by ensuring our children can prosper where individuals like Duron do not threaten their welfare.”

The San Antonio FBI’s Crimes Against Children Task Force and the Texas Attorney General’s Office conducted this investigation.  Duron has remained in federal custody since his arrest on October 5, 2019.

Assistant U.S. Attorney Bettina Richardson prosecuted this case.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice.  Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims.  For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

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In honor of National Police Week, U.S. Attorney Ashley C. Hoff recognizes the service and sacrifice of federal, state, local and Tribal law enforcement. This year, the week is observed Sunday, May 9 through Saturday, May 15, 2021.  

“This week is a time to honor our law enforcement officers who have made the ultimate sacrifice in service to our nation,” said Attorney General Merrick B. Garland. “I am constantly inspired by the extraordinary courage and dedication with which members of law enforcement act each day, putting their lives on the line to make our communities safer. To members of law enforcement and your families: we know that not a single day, nor a single week, is enough to recognize your service and sacrifice. On behalf of the entire Department of Justice, you have our unwavering support and eternal gratitude.”

“On behalf of the entire staff of the U.S. Attorney’s Office for the Western District of Texas, I express our deep respect and sincere gratitude for law enforcement officers. Every day, they put their lives on the line to keep us safe. We honor our officers this week, and always, for their service, courage, and dedication. We especially remember those fallen officers who have made the ultimate sacrifice in the line of duty,” said U.S. Attorney Hoff.

In 1962, President Kennedy issued the first proclamation for Peace Officers Memorial Day and National Police Week to remember and honor law enforcement officers for their service and sacrifices.  Peace Officers Memorial Day, which every year falls on May 15, specifically honors law enforcement officers killed or disabled in the line of duty.  

Each year, during National Police Week, our nation celebrates the contributions of law enforcement from around the country, recognizing their hard work, dedication, loyalty, and commitment to keeping our communities safe. This year the COVID-19 pandemic has highlighted law enforcement officers’ courage and unwavering devotion to the communities that they have sworn to serve.

During the Roll Call of Heroes, a ceremony coordinated by the Fraternal Order of Police (FOP), more than 300 officers will be honored.  Based on data submitted to and analyzed by the National Law Enforcement Officer Memorial Fund (NLEOMF), of the law enforcement officers who died nationwide in the line of duty in 2020, nearly 60 percent succumbed to COVID-19. Here in the Western District of Texas, eight officers died in the line of duty in 2020.  

Additionally, according to statistics reported by the Federal Bureau of Investigation (FBI) through the Law Enforcement Officer Killed and Assaulted (LEOKA) Program, 46 law enforcement officers died as a result of felonious acts and 47 died in accidents in 2020.  LEOKA statistics can be found on FBI’s Crime Data Explorer website. 

The names of the 394 fallen officers who have been added to the wall at the National Law Enforcement Officer Memorial in 2020 will be read on Thursday, May 13, 2021, during a Virtual Candlelight Vigil, which will be livestreamed to the public at 8:00 p.m. EDT. The Police Week in-person public events, originally scheduled for May, have been rescheduled due to ongoing COVID-19 concerns to October 13-17, 2021. An in-person Candlelight Vigil event is scheduled for October 14, 2021.

Those who wish to view the Virtual Candlelight Vigil on May 13, 2021, can watch on the NLEOMF YouTube channel found at https://www.youtube.com/user/TheNLEOMF. The FOP’s Roll Call of Heroes can be viewed at www.fop.net. To view the schedule of virtual Police Week events in May, please view NLEOMF’s Police Week Flyer.   

To learn more about National Police Week in-person events scheduled for October, please visit www.policeweek.org.

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SAN ANTONIO– A Dallas man was arrested last night in San Antonio on federal criminal charges related to his alleged involvement in smuggling a large group of undocumented noncitizens.

According to the criminal complaint filed today, 49-year-old Aron Bernard Griffin was arrested after several concerned community members called 911 to report seeing multiple individuals inside the back of a tractor trailer that Griffin was driving.  The tractor trailer was located at a gas station on Interstate Highway 10 East in San Antonio.  Forty-one undocumented noncitizens were found at the scene and were detained by Homeland Security Investigations (HSI) Special Agents.

Griffin admitted to Agents that he had made an agreement with another person to pick up the undocumented individuals in Laredo and transport them to San Antonio in return for financial gain. 

Griffin is charged by criminal complaint with one count of violating Title 8, Section 1324, smuggling of undocumented noncitizens.  If convicted, Griffin faces a maximum penalty of 10 years in prison. If convicted, a federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Griffin is expected to appear before U.S. Magistrate Judge Elizabeth S. Chestney today for an initial appearance.

U.S. Attorney Ashley C. Hoff of the Western District of Texas and HSI Acting Special Agent in Charge Craig Larrabee made the announcement.

HSI is investigating this case with the assistance of the San Antonio Police Department.

Assistant U.S. Attorney Daphne Newaz is prosecuting the case.

A criminal complaint is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

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SAN ANTONIO – In San Antonio, a federal jury convicted Mehrdad Ansari, a 39-year-old Iranian citizen and a resident of the United Arab Emirates and Germany, for scheming to obtain military sensitive parts for Iran in violation of the Iranian Trade Embargo. These parts had dual-use military and civilian capability and could be used in such systems as nuclear weapons, missile guidance and development, secure tactical radio communications, offensive electronic warfare, military electronic countermeasures (radio jamming), and radar warning and surveillance systems.

The jury convicted Ansari of one count of conspiracy to violate the Iranian Transaction Regulations (ITR), one count of conspiracy to commit wire fraud, one count of conspiracy to defraud the U.S. Department of the Treasury and two counts of aiding and abetting the making of false statements.  Evidence presented during trial revealed that Ansari attempted to transship  cargo obtained from the U.S. by co-defendants Taiwanese citizen Susan Yip, aka Susan Yeh, and Iranian citizen Mehrdad Foomanie, aka Frank Foomanie, using Ansari’s companies, Gulf Gate Sea Cargo L.L.C. and Global Merchant L.L.C., located in Dubai, United Arab Emirates.

From October 9, 2007, to June 15, 2011, primarily Yip and Foomanie obtained or attempted to obtain from companies worldwide over 105,000 parts valued at approximately $2,630,800 involving more than 1,250 transactions. The defendants conducted 599 transactions with 63 different U.S. companies in which they obtained or attempted to obtain parts from U.S. companies without notifying the U.S. companies these parts were being shipped to Iran or getting the required U.S. government license to ship these parts to Iran.

At no time did Yip, Foomanie or Ansari, individually or through any of their companies, ever apply for or receive either a required U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) license or Department of Commerce export license to ship any item listed in this indictment to the Republic of Iran.

Iranian Transaction Regulations prohibit, among other things, the exportation, re-exportation, sale or supply, directly or indirectly, to Iran or the Government of Iran, of any goods, technology or services from the U.S. or by a U.S. person. The embargo also prohibits any transaction by any U.S. person or within the U.S. that evades or avoids, or has the purpose of evading or avoiding, any prohibition set forth in the Executive Orders.

John C. Demers, Assistant Attorney General for National Security; U.S. Attorney Ashley C. Hoff; FBI San Antonio Division Special Agent in Charge Christopher Combs; Homeland Security Investigations (HSI) Acting Special Agent in Charge Craig Larrabee; Defense Criminal Investigative Service (DCIS) Southwest Field Office Special Agent in Charge Michael Mentalvos; and Acting Special Agent in Charge John Ruiz, U.S. Commerce Department’s Bureau of Industry and Security’s Office of Export Enforcement, Dallas Field Office, made today’s announcement.

Ansari faces up to 20 years in federal prison for conspiracy to violate Iranian Trade Regulations; up to five years for conspiracy to commit wire fraud; up to five years for conspiracy to defraud the U.S. Department of the Treasury; and up to five years on each count of aiding and abetting the making of false statements.  Sentencing is scheduled for September 1, 2021.

In October 2012, Yip was sentenced to two years in federal prison after pleading guilty to conspiring to violate the ITR by acting as a broker and conduit for Foomanie to buy items in the U.S. and have them unlawfully shipped to Iran.  Mehrdad Foomanie remains a fugitive.

FBI, HSI, the Department of Commerce, Bureau of Industry and Security and the Defense Criminal Investigative Service investigated this case.  Assistant U.S. Attorneys Mark Roomberg, William R. Harris and Kelly Stephenson are prosecuting this case.

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WASHINGTON – A federal jury convicted an Iranian citizen and a resident of the United Arab Emirates and Germany, for scheming to obtain military sensitive parts for Iran in violation of the Iranian Trade Embargo. These parts had dual-use military and civilian capability and could be used in systems such as nuclear weapons, missile guidance and development, secure tactical radio communications, offensive electronic warfare, military electronic countermeasures (radio jamming), and radar warning and surveillance systems.

According to court documents and evidence presented at trial, Mehrdad Ansari, 39, of Iran, attempted to transship and transshipped cargo obtained from the U.S. by co-defendants Taiwanese citizen Susan Yip, aka Susan Yeh, and Iranian citizen Mehrdad Foomanie, aka Frank Foomanie, using Ansari’s company Gulf Gate Sea Cargo LLC, located in Dubai, United Arab Emirates.

From Oct. 9, 2007 to June 15, 2011, the defendants obtained or attempted to obtain from companies worldwide over 105,000 parts valued at approximately $2,630,800 involving more than 1,250 transactions. The defendants conducted 599 transactions with 63 different U.S. companies in which they obtained or attempted to obtain parts from U.S. companies without notifying the companies these parts were being shipped to Iran or getting the required U.S. government license to ship these parts to Iran.

At no time did Yip, Foomanie or Ansari, individually or through any of their companies, ever apply for or receive either a required U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) license or Department of Commerce export license to ship any item listed in this indictment to the Republic of Iran.

Iranian Transaction Regulations prohibit, among other things, the exportation, re-exportation, sale or supply, directly or indirectly, to Iran or the Government of Iran, of any goods, technology or services from the U.S. or by a U.S. person. The embargo also prohibits any transaction by any U.S. person or within the U.S. that evades or avoids, or has the purpose of evading or avoiding, any prohibition set forth in the Executive Orders.

Ansari was convicted of one count of conspiracy to violate the Iranian Transaction Regulations (ITR), one count of conspiracy to commit wire fraud, one count of conspiracy to defraud the U.S. Department of the Treasury and two counts of aiding and abetting the making of false statements. He is scheduled to be sentenced on Sept. 1 and faces a up to 20 years in federal prison for conspiracy to violate Iranian Trade Regulations; up to 5 years for conspiracy to commit wire fraud; up to 5 years for conspiracy to defraud the U.S. Department of the Treasury; and up to 5 years on each count of the aiding and abetting the making of false statements. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

In October 2012, Yip was sentenced to two years in federal prison after pleading guilty to conspiring to violate the ITR by acting as a broker and conduit for Foomanie to buy items in the U.S. and have them unlawfully shipped to Iran. Mehrdad Foomanie remains a fugitive.

Assistant U.S. Attorneys Mark Roomberg, William R. Harris and Kelly Stevenson are prosecuting the case, with valuable assistance provided by Deputy Chief for Export Control and Sanctions Elizabeth Cannon of the Justice Department’s Counterintelligence and Export Control Section.

A federal judge in San Antonio today sentenced 49-year-old Bradley Lane Croft, owner of Universal K-9, Inc., to 118 months of imprisonment for scheming to defraud the federal government of more than $1.5 million in Veterans Affairs GI Bill benefits to train service canines and their handlers. 

In addition to the prison term, Senior U.S. District Judge David A. Ezra ordered that Croft pay $1,506,758.31 in restitution and be placed on supervised release for a period of three years after completing his prison term.

“Today’s sentence demonstrates what can happen to you if you choose to rip off  one of the most important benefit programs we have for our veterans. My thanks goes to the prosecutors and our law enforcement partners who worked so hard to see justice served,” said U.S. Attorney Ashley C. Hoff.

After a bench trial in November 2019, Judge Ezra found Croft guilty on eight counts of wire fraud, four counts of aggravated identity theft, two counts of money laundering and two counts of making a false tax return.  Testimony during trial revealed that beginning in 2015, Croft provided false information in applications to the Texas Veterans Commission, including instructors’ names, certifications and training documents to receive GI Bill educational benefit payments.  Croft and others solicited veterans as students indicating that they could use their GI Bill benefits to pay for a dog handler’s courses that cost between $6,500.00 and $12,000.00.   During the scheme, Universal K-9 filed approximately 185 fraudulent claims relating to the education of about 132 veterans totaling over $1.5 million. 

“The FBI is committed to working with our partners to protect important federal programs, like the GI Bill, which serves to improve the lives of men women who sacrifice so much to serve our nation,” said FBI Special Agent in Charge Christopher Combs, San Antonio Division. “Thanks to the hard work of IRS CI, VA-OIG, the U.S. Attorney’s Office and the lead FBI investigator, a task force officer with the Texas Department of Public Safety, Croft’s fraud scheme and his betrayal of veterans has ended.”

Trial testimony also revealed that Croft submitted fraudulent income tax returns showing his 2016 reported income as $2,000 and his reported income as $2,000 for 2017.  Evidence showed that Croft actually received substantially more income than what he reported to the IRS in 2016 and 2017.

“Defrauding programs such as the GI Bill, is particularly disturbing and a slap in the face to all the U.S. Service men and women who count on these programs to help improve their futures.  Today’s stiff sentencing of Bradley Lane Croft, owner of Universal K-9, Inc., shows once again how harmful ‘white collar’ fraud can be,” said IRS Criminal Investigation (IRS CI) Special Agent in Charge Rick Goss, of the Houston Field Office.  “IRS CI is proud to have worked with our FBI and VA-OIG counterparts to investigate and ultimately bring down Mr. Croft’s illicit scheme involving wire fraud, aggravated identify theft, money laundering, and the filing of false Federal Income tax returns.” 

Judge Ezra also ordered Croft to forfeit: his San Antonio business property; approximately $239,825.73 seized from his bank accounts; approximately $4,372 seized on site at Universal K-9; a 2017 American Eagle 45T Motorhome (valued at over $450,000); a 2018 Ford F-150 King Ranch Lariat; a 2017 Dodge Ram 1500 Laramie; a 2016 Yamaha Superjet Ski; a 2008 Yamaha Waverunner Jet ski; and a 2012 Rocket International Trailer.  Judge Ezra also granted the government’s motion for a money judgment in the amount of $1.3 million.

“The Post-911 GI Bill program provides critical educational and job benefits to veterans who served their country. This sentence sends a strong message that anyone who defrauds that program or veteran students will be held accountable in a court of law,” said U.S. Department of Veterans Affairs Office of Inspector General (VA-OIG) Special Agent in Charge Jeffrey Breen, South Central Field Office.  “VA-OIG thanks the U.S. Attorney’s Office, the FBI, and IRS CI for collaborating on this important case to achieve justice.”

On August 8, 2018, federal authorities executed a search warrant at Croft’s business in San Antonio.  A total of 26 canines at the business were placed into the custody of the city’s Animal Care Services. 

Croft has remained in federal custody since the verdict.     

The FBI, VA-OIG and IRS CI investigated this case.  Assistant U.S. Attorneys Gregory J. Surovic and Fidel Esparza III prosecuted this case.

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Jeremy Lee Barrera, a 36-year-old former firefighter with the Odessa Fire Department (OFD), admitted in federal court today to possessing child pornography and using his cell phone on the OFD network to access an online chat room where several videos were posted which depicted child pornography.

Appearing before U.S. Magistrate Judge Ronald Griffin in Midland, Barrera pleaded guilty to one count of possession of child pornography.  According to court documents, HSI agents conducting an online child sex exploitation investigation identified two local IP addresses used by an account registered to a “Ray Jones” to enter an encrypted online group chat whose members were viewing child pornography.  One IP address was registered to OFD Station #2; the other was registered to Barrera’s residence.  Based on that information, agents executed a search warrant at Barrera’s residence on January 25, 2021.  During that search, agents seized the defendant’s cell phone.  A subsequent forensics examination of the cell phone revealed the presence of multiple videos and images depicting minors engaged in sexually explicit activity. The forensics examination of the cell phone also discovered approval remarks by the defendant about child pornography posted in the chat room as well as requests for additional links to child pornography which he communicated in multiple chats using the moniker “Ray Jones”.

“Individuals, such as Barrera, who send or receive child pornography revictimize children each time these illegal images are distributed online,” said Homeland Security Investigations (HSI) Special Agent in Charge Erik P. Breitzke, El Paso Division. “Child exploitation is one of the most serious crimes HSI investigates, because of the lasting physical and psychological damage inflicted on innocent and vulnerable victims, and we will continue to pursue these perpetrators and ensure serious consequences for their heinous crimes.”

Barrera is currently in federal custody. He faces up to 20 years in federal prison. A sentencing date has yet to be scheduled.     

U.S. Attorney Ashley C. Hoff and HSI Special Agent in Charge Breitzke made the announcement.

HSI, together with the Odessa Police Department, investigated this case.  Assistant U.S. Attorney Shane Chriesman is prosecuting this case.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice.  Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims.  For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

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A federal judge sentenced Lakeway resident 49-year-old Robert “Scott” Villarreal to 87 months of imprisonment for a scheme to embezzle millions of dollars from a company headquartered in Austin where his ex-wife served as Chief Financial Officer.

During sentencing yesterday in Austin, U.S. District Judge Robert Pitman also ordered the defendant to pay $15,941,452.87 in restitution to Richardson Enterprises, Ltd. (Richardson), which owns and operates automobile dealerships in Arizona, New Mexico and Texas, and $4,243,649 in restitution to the IRS. The defendant and his ex-wife used the embezzled funds to support a lavish lifestyle.

According to court records, an investigation conducted by the FBI and IRS Criminal Investigation (IRS CI) revealed that in 2009, Tamra Maurine Villarreal (aka Tamra Creighton Villarreal) and Scott Villarreal began stealing money from the company and using it for their personal benefit even though Tamra was paid an annual salary in excess of $400,000.  The Villarreals used the stolen money to purchase a $2.7 million residence featured in the 2008 Parade of Homes. They also used the fraudulently obtained funds to pay for travel, hotels, restaurant tabs, vehicles, lavish jewelry, rare American coins from the 1800’s, gold bars, art, a collection of designer handbags and clothes valued at hundreds of thousands of dollars along with firearms and illegal controlled substances.  During a four-day period from July 30, 2016 to August 2, 2016, Scott and Tamra Villarreal charged a total of $72,578.27 for three meals at a Houston restaurant on a company credit card. This amount was 13.6% of their reported income for 2016.

"Thanks to the efforts of the FBI and IRS CI, these defendants will no longer live an extravagant lifestyle paid for by their illegal fleecing of innocent victims. Instead, they will be held accountable for their crimes - by serving prison time and paying more than $20 million in restitution," said U.S. Attorney Hoff.

“Scott Villarreal’s life of luxury and extravagance, financed by shamelessly stealing millions of dollars from a business, has now come to an end, thanks to the hard work of the FBI, IRS CI and the U.S. Attorney’s Office,” said FBI Special Agent in Charge Christopher Combs, San Antonio Division. “While serving his lengthy prison sentence, the defendant will have plenty of time to contemplate the reality of his new life as a convicted felon.”

In April 2018, law enforcement executed a search warrant on the Lakeway residence and recovered many valuables purchased by the Villarreals during the scheme.

On August 18, 2020, Scott Villarreal pleaded guilty to a three-count Information charging him with money laundering, possession with the intent to distribute cocaine and making and subscribing to a false income tax return. By pleading guilty, Villarreal admitted that from 2009 to January 2018, he schemed to embezzle funds from Richardson bank accounts and used that money for personal enrichment. Specifically, Villarreal helped to divert monies from Richardson bank accounts to those belonging to him and his ex-wife.

Villarreal also admitted that he subscribed to a false 2013 federal income tax return wherein he and his spouse claimed $433,747 in earnings when in truth their income that year far exceeded that amount when the proceeds received from their fraud scheme were included.

“No matter what the source of income, all income is taxable, even embezzled income,” said IRS Criminal Investigation Special Agent in Charge Richard D. Goss, Houston Field Office.  “The prosecution of individuals who intentionally conceal their illegally obtained income and evade Federal income taxes, such as Mr. Villareal has done, is a vital element of IRS’ enforcement strategy.”

In December 2020, Judge Pitman sentenced Tamra Villarreal to 63 months imprisonment for her role in the same scheme as well as equal responsibility for $15,941,452.87 in restitution to the Richardson family and $4,243,649 in restitution to the IRS.

The FBI and IRS Criminal Investigation jointly investigated this case.  Assistant U.S. Attorneys Michelle Fernald and Robert Almonte II prosecuted this case.

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In San Antonio today, 22-year-old Cameron Emerson Casey Rankin, a self-proclaimed Boogaloo Bois member residing in San Antonio, pleaded guilty to a charge of illegally possessing a firearm after previously being judicially committed to a mental institution.

Appearing before U.S. District Judge Jason K. Pulliam, Rankin admitted that he was in possession of a black semi-automatic rifle on October 28, 2020, when FBI agents executed a search warrant at his apartment.  During the search, agents recovered the rifle along with loaded ammunition magazines and a ballistic plate tactical vest.  Twelve years earlier, Rankin was judicially committed to a mental institution by the Bexar County, Texas, Probate Court No. 1. 

According to court documents on August 11, 2020, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) agents served Rankin written notice at the Manchester, NH airport that he was prohibited from possessing firearms.  The agents also provided him with copies of his mental health records.  On that same day, agents seized a handgun and ammunition from inside Rankin’s luggage.  Rankin threw the notice letter and mental health records in the trash before leaving the airport terminal.

Upon conviction, Rankin faces up to 10 years in federal prison. Rankin, who has remained in federal custody since October 28, 2020, is scheduled for sentencing at 2:00 PM on July 27, 2021, before Judge Pulliam.  

U.S. Attorney Ashley C. Hoff and FBI Special Agent in Charge Christopher Combs, San Antonio Division, made today’s announcement.

The San Antonio FBI’s Joint Terrorism Task Force and the ATF investigated this case.  Assistant U.S. Attorneys William R. Harris and Mark Roomberg are prosecuting this case.

This case falls within the purview of the Attorney General’s Task Force to Combat Violent Anti-Government Extremism. Launched in June 2020, the Task Force is dedicated to supporting the investigation and prosecution of any person or group who commits violence in the name of an anti-government ideology.

This case is also a part of Project Guardian, which is the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws.

Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the ATF when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and, ensures that federal resources are directed at the criminals posing the greatest threat to our communities. Click here for more information about Project Guardian.

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A Colorado man was sentenced today to 60 years in prison for production, transportation, and possession of child pornography.

Alvaro Castillo, 64, of Englewood, was convicted by a federal jury of three counts of production of child pornography; one count of attempted production of child pornography; one count of transportation of child pornography; and one count of possession of child pornography on Nov. 18, 2020.

According to trial evidence, in May 2018, Castillo traveled to his native country of Guatemala, and videorecorded himself sexually abusing a 13-year-old victim who was sleeping. Evidence from that video identified Castillo as the abuser. In addition to this videorecording, Castillo also possessed and transported additional images of child sexual abuse. Law enforcement agents discovered the child pornography evidence during an October 2019 search of a recreational vehicle that he was driving at the U.S. – Mexico border.

“Alvaro Castillo recorded himself committing unspeakable crimes against a defenseless child in a foreign country,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “The department is committed to identifying and prosecuting transnational offenders like Alvaro Castillo, and today’s sentence will protect children in Guatemala and the United States from such predatory behavior.”

“Child victimization is a crime that knows no borders and HSI, as a global investigative agency, is committed to working with its domestic and international partners to stop these criminals from exploiting innocent children anywhere in the world,” said Special Agent in Charge Erik P. Breitzke for Homeland Security Investigations (HSI) El Paso. “We may not be able to undo the damage done, but sentences such as today’s serve to hold child predators accountable and, we hope, help the victims heal.”

In addition to the prison sentence, Castillo was ordered to serve a lifetime of supervised release and pay $33,586.89 in restitution.

HSI investigated the case with assistance from U.S. Customs and Border Protection.

Trial Attorney Trial Attorney Austin M. Berry of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney John Cannizzaro of the Western District of Texas are prosecuting the case.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.

Daniel O’Leary, manager and registered agent for El Paso Asset Appraisals, LLC, d/b/a/ Asset Property Management, paid a $100,000 civil penalty yesterday to settle allegations that he falsely certified home appraisals performed by uncertified assistants.  These appraisals were subsequently relied upon by the Federal Housing Administration (FHA) in insuring home mortgage loans.  In addition to payment of the civil monetary penalty, O’Leary has agreed to surrender any Appraiser’s licenses he maintains in the State of Texas, or any other state, for a period of five years.

U.S. Attorney Ashley C. Hoff; Catherine Huber, Special Agent in Charge of the Central Region of the Federal Housing Finance Agency, Office of Inspector General (FHFA-OIG); Bertrand Nelson, Special Agent in Charge, Department of Housing and Urban Development, Office of Inspector General (HUD-OIG); and FBI Acting Special Agent in Charge Jeffrey Coburn made today’s announcement.

“Regulations requiring certified appraisals before a home mortgage is guaranteed by the FHA are in place to protect consumers and taxpayers” said U.S. Attorney Hoff.  “Any time someone tries to circumvent those regulations for personal gain it places consumers and the FHA program at risk.”

“Daniel O’Leary abused his position as a certified appraiser by making false representations to lenders that were relied upon in issuing home mortgage loans,” said Special Agent in Charge Huber.  “This settlement illustrates FHFA-OIG’s commitment to work with our law enforcement partners in identifying and holding accountable those who engage in misconduct impacting the mortgage lending industry.” 

The HUD-OIG, FHFA-OIG and the FBI investigated this matter with assistance from the Texas Appraiser Licensing and Certification Board (TALCB).  The investigation by these law enforcement agencies revealed evidence indicating that appraisals were certified as having been performed by Mr. O’Leary on dates when he was traveling out of the state or out of the country.

“We work tirelessly to ensure the integrity of the appraisal system used to validate federally insured mortgages and to protect it from fraud and exploitation,” said Special Agent in Charge Nelson. “Today’s announcement is a testament to the dedication across the law enforcement community to vigorously pursue those who would seek to undermine it for personal gain.”

“This civil settlement against Daniel O'Leary is yet another reminder of the FBI’s continued commitment to pursue individuals who have violated the public’s confidence and hold them accountable, irrespective of status,” said Acting Special Agent in Charge Coburn.

The claims asserted against the defendant under the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 are allegations only; there has been no determination of liability.  Assistant U.S. Attorney Eduardo R. Castillo handled this matter for the government.

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SAN ANTONIO – Six defendants were arrested in San Antonio on criminal charges related to their alleged participation in a scheme to defraud two transportation companies of over $1 million.

According to court documents, Veronica Rios, 42, of Salado; Pedro Guillen, 48, of San Antonio;  Mario Martinez, 48, of Von Ormy; Guadalupe Alsidez, 47, of San Antonio; Amanda Hernandez, 23, of San Antonio; and Maira Vargas, 37, of San Antonio defrauded the transportation companies of over $1,407,000 through a payroll scheme.  According to the indictment, Rios processed payroll for the companies. In 2017, Rios started overpaying employees in exchange for some of the overpayment.  To further the scheme, Rios also added non-employees to the payroll who gave Rios part of the payments they received.

Rios, Martinez, and Alsidez were arrested on April 19.  Guillen, Hernandez and Vargas were arrested on April 21.  Guillen, Hernandez and Vargas are on bond.  Rios, Martinez and Alsidez are in custody pending detention hearings.

Veronica Rios is charged with 18 counts of wire fraud for fraudulent payments she made to various employees.  Each of the remaining defendants is charged with three counts of wire fraud for fraudulent payments they received from Rios.  If convicted, the defendants face a maximum penalty of 20 years in prison on each count.  

U.S. Attorney Ashley C. Hoff of the Western District of Texas and FBI Special Agent in Charge Christopher Combs, San Antonio Division, made the announcement.

The FBI is investigating the case.

Assistant U.S. Attorney Daphne Newaz is prosecuting the case.

An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

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In Austin today, a federal grand jury charged Joe Quinonez, age 32, of Austin with armed robbery in violation  of the Hobbs Act and a federal firearms charge, announced U.S. Attorney Ashley C. Hoff and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Fred J. Milanowski, Houston Division.

According to the indictment, Quinonez is charged with one count of violating the Hobbs Act or interfering with commerce by threats of violence.  The indictment alleges that on January 2, 2021, Quinonez entered a Cash America Pawn store in Austin and brandished a firearm at two persons in the store while robbing the store of firearms.  In addition, the indictment charges Quinonez with discharging a firearm during the robbery.

Quinonez was arrested by officers of the Austin Police Department on January 6, 2021 and has remained in police custody.  Quinonez will be remanded into federal custody for his initial appearance next week.

This case is part of Operation Undaunted, a program which draws on the partnerships among federal, state and local law enforcement coupled with prosecution authorities to tackle violent crime and protect the communities of central and west Texas.

An indictment is merely a charge and should not be considered as evidence of guilt.  The defendant is presumed innocent until proven guilty in a court of law.

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Twenty central Texas residents face federal drug trafficking and firearms charges stemming from five separate, but related, federal grand jury indictments unsealed today in Waco, announced U.S. Attorney Ashley C. Hoff; FBI Special Agent in Charge Christopher Combs, San Antonio Division; Texas Department of Public Safety (DPS) Director Steven McCraw; Temple Police Chief Shawn Reynolds; Killeen Police Chief Charles Kimble; and Drug Enforcement Administration (DEA) Special Agent in Charge Daniel C. Comeaux, Houston Division.

Indictment #1 – U.S. v. Gutierrez, et al.

This federal grand jury indictment charges the following defendants with conspiracy to possess with intent to distribute methamphetamine:

Anthony Gutierrez, aka Cuzzo, age 34 of San Juan; Jose Francisco Gutierrez, age 33 of Killeen; Sarah Elizabeth Crigger, age 30 of Nolanville; Bobby Quinton Gentile, age 43 of Holland; Ashley Nicole Sutton, age 31 of Belton; Wesley Warrick, age 50 of Cameron; Carlos Avila, age 38 of Buckholts; Joe David Beck, age 50 of Temple; Lesleigh Arianne Bittner, age 33 of Belton; Aleah Freitag, age 29 of Rockdale; Kimberly Lee, age 26 of Gatesville; Colton Lane Lewis, age 30 of Temple; Angela Loy, age 32 of Temple; Frank Medina Jr, age 43 of Temple; Timothy Neal Nyquist, age 36 of Temple; and
Trisha Ann Sanchez, age 40 of Temple.

The indictment alleges that the defendants conspired since January 2020 to distribute multiple kilogram quantities of methamphetamine in Bell County and surrounding areas. 

OVer the past two days, federal, state and local authorities arrested 13 of the above defendants.  Jose Gutierrez, Crigger and Lewis were already in custody prior to yesterday.  During this investigation authorities seized approximately four kilograms of cocaine, approximately seven kilograms of methamphetaine and a half a dozen firearms. 

Anthony Gutierrez, Jose Gutierrez, Crigger, Gentile, Sutton and Warrick face between 10 years and life in federal prison upon conviction because the quantity level charged is at least 500 grams.  The remaining defendants face between five years and 40 years in federal prison upon conviction because the quantity level charged is at least 50 grams.

Indictment #2 – U.S. v. Cory Joe Barton

This federal grand jury indictment charges 35-year-old Cory Joe Barton of Gatesville with conspiracy to possess with intent to distribute methamphetamine.  The indictment alleges that on November 11, 2020, he possessed at least 500 grams of methamphetamine.  If convicted, Barton faces btween 10 years and life in federal prison.  Barton was previously arrested.

Indictment #3 – U.S. v. Lori Oliphint

This federal grand jury indictment charges 43-year-old Lori Oliphint of Temple with possession with intent to distribute under 50 grams of methamphetamine on August 19, 2020.  If convicted, Oliphint faces up to 20 years in federal prison.  Authorities arrested Oliphint yesterday.

Indictment #4 – U.S. v. Kayli Marie Guthrie

This federal grand jury indictment charges 21-year-old Kayli Marie Guthrie of Temple with possession of a firearm by a convicted felon.  The indictment alleges that on May 21, 2020, Guthrie was in possession of a Colt .45 caliber handgun.  According to the indictment, Guthrie was convicted on March 27, 2020, in Bell County, for possession of a controlled substance less than one gram and unauthorized use of a motor vehicle.  Authorities arrested Guthrie last night.

Indictment #5 – U.S. v. Annie Rose Lewis

This federal grand jury indictment charges 31-year-old Annie Rose Lewis of Temple with one count of convicted felon in possession of a firearm.  The indictment alleges that on December 21, 2020, Lewis possessed a .380 caliber pistol.  Lewis has a 2011 federal conviction for manufacturing counterfeit currency.  If convicted, Lewis faces up to 10 years in federal prison.  Authorities arrested Lewis earlier today.

The FBI, Temple Police Department, Killeen Police Department, Texas Department of Public Safety Narcotics Division and Drug Enforcement Administration conducted this investigation.  The U.S. Marshals Service provided valuable assistance with the arrests.  Assistant U.S. Attorney Stephanie Smith-Burris is prosecuting these cases.

It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt.  The defendants are presumed innocent until proven guilty in a court of law.

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Twenty-two defendants from San Antonio, Del Rio and Laredo face federal drug trafficking charges, announced U.S. Attorney Ashley C. Hoff and Drug Enforcement Administration (DEA) Special Agent in Charge Daniel C. Comeaux, Houston Division.

A federal grand jury indictment unsealed today charges the following defendants with conspiracy to possess with intent to distribute a controlled substance:

Matthew Noe Arteaga, age 35 of San Antonio;

Nicolas Rodriguez, age 39 of San Antonio;

Bryan Anthony Brown, age 33 of San Antonio;

Brian Victorino Chavarria, age 24 of San Antonio;

Oscar Oviedo, age 26 of San Antonio;

Joseph Richard Guerrero, age 28 of San Antonio;

Homero Garcia, age 36 of San Antonio;

Jesus Gerardo Vasquez, age 19 of San Antonio;

Jesse Martinez, age 41 of San Antonio;

Justin Paul Guerrero, age 26 of San Antonio;

Ricardo Gonzalez, age 24 of San Antonio;

Juan Carlos Robles, age 35 of San Antonio;

Fernando Jose Moreno, age 45 of San Antonio;

Rene Palafos, age 37 of San Antonio;

Michael Barron, age 39 of San Antonio;

Oswaldo Jesus Lopez, age 26 of Laredo;

Oscar Jesus Lopez, age 23 of Laredo;

Javier Garcia Lopez, age 29 of San Antonio;

Jose De Jesus Garcia, age 35 of San Antonio;

Madilyn Marie Alvarado, age 26 of Del Rio

James Patric Bartlett, age 42 of San Antonio; and,

Albelardo Oviedo, age 29 of San Antonio.

The indictment alleges that defendants Arteaga, Rodriguez, Brown, Chavarria, Oscar Oviedo, Joseph Guerrero, Vasquez, Martinez, Justin Guerrero, Gonzalez, Robles, Moreno, Palafos, Barron, Lopez, Jose Garcia, Alvarado, Bartlett, and Albelardo Oviedo conspired from June 2019 until April 7, 2021, to distribute methamphetamine.  It also alleges that from June 2019 until April 7, 2021, Oscar Oviedo, Vasquez, Justin Guerrero, Moreno and Palafos conspired to distribute cocaine, and that Chavarria, Homero Garcia, Oswaldo Lopez and Oscar Lopez conspired to distribute heroin.   All of the defendants except Albelardo Oviedo are also charged in substantive counts in the indictment related to specific instances of drug trafficking that occurred throughout the course of the conspiracy. 

During this investigation, authorities seized approximately 24 kilograms of methamphetamine, six kilograms of heroin, three kilograms of cocaine, four firearms and approximately $100,000 along with other assets attributable to this organization.

Over the past two days, federal, state and local authorities arrested all of the defendants with the exception of Brown, Martinez, Jose Garcia, Alvarado, and Bartlett.  Those five defendants were already in custody.

“These arrests send a strong and unified message that these crimes will not be tolerated in our communities and those who commit these offenses will be brought to justice,” said DEA Special Agent in Charge Comeaux. “We will continue to work closely with our federal, state and local law enforcement partners in order to enhance the quality of life for the citizens in the San Antonio region.”

Martinez, Robles, and Jose Garcia face between 15 years and life upon conviction of conspiracy to possess a controlled substance with intent to distribute.  Each has a prior serious felony drug conviction which enhances their minimum mandatory sentence.  All the remaining defendants face between 10 years to life in federal prison upon conviction. 

It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt.  The defendants are presumed innocent until proven guilty in a court of law.

The DEA, U.S. Marshals Service, IRS Criminal Investigations, U.S. Customs and Border Protection, Texas Department of Public Safety, Bexar County Sheriff’s Office, Terrell Hills Police Department, Seguin Police Department and San Antonio Police Department conducted this Organized Crime Drug Enforcement Task Force (OCDETF) investigation called Operation Alamo Fade. The Bexar County District Attorney’s Office also assisted in the investigation.  OCDETF Lead Task Force Attorney Adrián Rosales is prosecuting this case on behalf of the government.

This operation is part of an OCDETF Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. The specific mission of the Houston/South Texas OCDETF Strike Force is to disrupt and dismantle the drug trafficking organizations headed by designated Consolidated Priority Organization Targets (CPOTs), Regional Priority Organization Targets (RPOTs), and their affiliates that impact Houston and south Texas.

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A federal judge in El Paso sentenced 28-year-old Roberto Martinez today to 40 months imprisonment for assaulting a child on the Ysleta Del Sur Pueblo reservation, announced U.S. Attorney Ashley C. Hoff; Homeland Security Investigations (HSI) Special Agent in Charge Erik P. Breitzke, El Paso Division; and Ysleta Del Sur Pueblo Tribal Police Chief Robert Martinez. 

In addition to the prison term, Senior U.S. District Judge David Briones ordered that Roberto Martinez be placed on supervised release for a period of three years after completing his prison term.

On January 7, 2021, Roberto Martinez pleaded guilty to one count of assault with a dangerous weapon with intent to do bodily harm in Indian Country.  According to court records, on November 1, 2019, Roberto Martinez threatened the victim with a knife while inside the victim’s home.

HSI and the Ysleta Del Sur Pueblo Tribal Police Department investigated this case.  Assistant U.S. Attorney Christopher Kirk Mangels prosecuted this case.

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In Midland, a federal judge sentenced the last of six defendants who were operating a methamphetamine distribution ring throughout the Odessa area.  The judge sentenced 42-year-old Jeremy David Farley, aka “Biker,” to 30 years in federal prison for conspiring to distribute approximately 27 kilograms of methamphetamine throughout the Odessa area, announced U.S. Attorney Ashley C. Hoff, Odessa Police Chief Mike Gerke and DEA Special Agent in Charge Kyle Williamson, El Paso Division.

During yesterday’s sentencing hearing, U.S. District Judge David Counts also ordered that Farley be placed on supervised release for a period of 10 years after completing his prison term.

On September 15, 2020, jurors convicted Farley of one count of conspiracy to possess with intent to distribute methamphetamine.  According to evidence presented during trial, Farley and others conspired between October 2019 and December 2019 to distribute approximately 27 kilograms of methamphetamine in the Permian Basin.  Evidence also revealed that this was Farley’s second federal drug conviction after being sentenced in 2009 to 87 months in federal prison for possession of methamphetamine with intent to distribute in the Odessa area.

This case resulted in six convictions and federal prison sentences, including Farley.  The other defendants who pleaded guilty to one count of conspiracy to distribute methamphetamine are:

• Alan Oszuel Gonzalez, age 35 of Midland, was sentenced on October 2, 2020 to 235 months in federal prison followed by five years of supervised release;
• Bryan Edward Madsen, age 49 of Odessa, was sentenced on October 9, 2020 to 312 months in federal prison followed by five years of supervised release;
• Timothy Granado Marquez, age 36 of Odessa, was sentenced on October 14, 2020 to 188 months in federal prison followed by five years of supervised release;
• Amber Rene Velarde, age 32 of Midland, was sentenced on October 14, 2020 to 135 months in federal prison followed by five years of supervised release; and,
• Michael Robert Spaulding, age 46 of Wink, was sentenced on October 2, 2020 to 235 months in federal prison followed by five years of supervised release.

 

The Odessa Police Department, with assistance from the DEA, investigated this case.  Assistant U.S. Attorney Shane A. Chriesman prosecuted this case. 

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In Del Rio today, a federal grand jury returned an indictment charging 24-year-old Austin resident Sebastian Tovar with transporting illegal aliens resulting in death, announced U.S. Attorney Ashley C. Hoff and Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden, San Antonio Division.

The indictment charges Tovar with one count of conspiracy to transport illegal aliens resulting in death, one count of transporting aliens resulting in death, one count of conspiracy to transport illegal aliens resulting in serious bodily injury and one count of transporting illegal aliens resulting in serious bodily injury.

According to court documents, on March 15, 2021, Tovar was traveling in a maroon pickup truck on FM 2523 near Del Rio when a Texas Department of Public Safety trooper attempted to stop him for speeding.  Tovar failed to stop and a pursuit ensued.  Tovar led the trooper on a chase for approximately 50 miles, at times reaching speeds over 100 miles per hour.  Traveling north into the southbound lane on Highway 277, Tovar collided with another vehicle head-on, resulting in the death of eight illegal aliens that had been in Tovar’s pickup truck. 

Border Patrol agents on the scene following the crash encountered a beige pickup truck stopped in traffic on Highway 277 near the crash site.  While agents were directing traffic,  multiple occupants jumped out of the beige pickup and fled the scene.  Agents subsequently apprehended twelve illegal aliens who fled that truck.  Four of the illegal aliens, all Mexican citizens, confirmed they were part of a failed human smuggling attempt in which the group illegally crossed into the U.S. and were divided between the maroon and beige pickup trucks for transport purposes.

Tovar, who remains in federal custody, faces up to life in federal prison upon conviction. 

HSI and the Texas Department of Public Safety, with the assistance of the U.S. Border Patrol, conducted this investigation.  Assistant U.S. Attorney Joshua B. Banister is prosecuting this case.

An indictment is merely a charge and should not be considered as evidence of guilt.  The defendant is considered innocent until proven guilty in a court of law.

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