Western District of Texas
Press releases recorded for this federal judicial district.
Judge in Del Rio Sentences Two San Antonio Sisters to Federal Prison for Attempting to Smuggle Methamphetamine into the U.S. from MexicoRead the Press Release
In Del Rio yesterday afternoon, a federal judge sentenced 21–year-old Mary Ann Lara and her sister, 24-year-old Melissa Janet Lara, both of San Antonio, to 24 years in federal prison followed by five years of supervised release for their scheme to smuggle methamphetamine into the U.S. from Mexico, announced U.S. Attorney John F. Bash, Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden, San Antonio Division.
In addition to the prison terms, U.S. District Judge Alia Moses ordered that Mary Ann pay a $6,000 fine; Melissa, a $4,500 fine.
On July 17, 2019, a federal jury convicted the sisters of importation of methamphetamine; conspiracy to possess with intent to distribute methamphetamine; and, possession with intent to distribute methamphetamine. Jurors also convicted Mary Ann of conspiracy to import methamphetamine. Evidence presented during trial revealed that on April 1, 2018, the defendants were attempting to enter the U.S. at the Eagle Pass Port of Entry. Customs agents sent the sisters to secondary inspection where investigators discovered approximately 38 kilograms of methamphetamine in non-factory compartments attached to the vehicle’s wheels.
“The sentence imposed on the Lara sisters sends a clear message that there are serious consequences to trafficking controlled substances,” said HSI San Antonio Special Agent in Charge Folden. “HSI along with our law enforcement partners, will continue to seek out and bring to justice those involved in the illicit drug trade.”
HSI, along with U.S. Customs and Border Protection, investigated this case. Assistant U.S. Attorney Amy Marie Hail prosecuted this case on behalf of the government.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.Federal Jury in San Antonio Convicts Two Relatives for Scheme to Steal Oil from Energy Companies Operating in the South Texas’ Eagle Ford ShaleRead the Press Release
In San Antonio this afternoon, a federal jury convicted 49–year-old Luis Valencia of San Antonio, and his nephew, 34-year-old Mauricio Valencia of San Antonio, for their scheme to steal oil from oil companies and oilfield service companies operating in the South Texas’ Eagle Ford Shale, announced U.S. Attorney John F. Bash and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
Jurors convicted Luis Valencia of ten counts of theft from interstate shipments, ten counts of wire fraud, ten counts of money laundering and four counts of transportation of stolen goods. Jurors convicted Mauricio Valencia of ten counts of theft from interstate shipments, one count of wire fraud and four counts of transportation of stolen goods. Evidence presented during trial revealed that from September 2013 through February 2016, the defendants engaged in a scheme with others to steal approximately 33,000 barrels of crude oil valued in excess of $1.8 million. In 2013, Luis Valencia and others began using Houston-based Andra Energy, LLC, to serve as a collection point in Cotulla, TX, for oil stolen from nearby oil storage facilities. To conceal their criminal actions, the defendants filed false documents with the Texas Railroad Commission to make it appear that the stolen oil was derived from legitimate transactions.
Following the verdict, Senior U.S. District Judge Royce Lamberth remanded both defendants to the custody of the U.S. Marshals Service. Theft of interstate shipment calls for up to ten years in federal prison. Wire fraud calls for up to 20 years in federal prison. Money laundering calls for up to ten years in federal prison. Transportation of stolen goods call for up to ten years in federal prison. Sentencing has yet to be scheduled.
The FBI, IRS-Criminal Investigation and Texas Attorney General’s Office investigated this case. Assistant U.S. Attorney William F. Lewis, Jr., is prosecuting this case on behalf of the government.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150YearsFormer Del Rio Sector U.S. Border Patrol Agent Sentenced to Federal Prison for Production and Possession of Child PornographyRead the Press Release
In San Antonio this morning, a federal judge sentenced a former Del Rio Sector U.S. Border Patrol agent assigned to the Uvalde Station to 50 years in federal prison for producing and possessing child pornography, announced U.S. Attorney John F. Bash and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
In addition to the prison term, Chief U.S. District Judge Orlando Garcia ordered that 37-year-old Vernon Lee Millican of Leakey, TX, pay a $10,000 special assessment under the Joint Victims of Trafficking Act (JVTA) and be placed on supervised release for a period of 20 years after completing his prison term.
On October 17, 2019, Millican pleaded guilty to one count of production of child pornography and one count of possession of child pornography. By pleading guilty, Millican admitted that between April 2015 and June 2018, he used multiple devices to produce and possess images and videos of himself sexually assaulting a prepubescent minor; and, depicting the minor engaging in sexually explicit conduct. According to the victim, Millican began to sexually abuse her when she was six years old.
“Today we put behind bars a brutal sexual predator who is a disgrace to the Border Patrol and the United States. His punishment is richly deserved,” stated U.S. Attorney Bash.
Millican was arrested on January 31, 2019, after a federal search warrant was executed at his home. He has since remained in federal custody.
“A heartbreaking reality of the world we’re living in is the hidden abuse of children,” said FBI Special Agent in Charge Combs. “They’re suffering in silence every day, both in our community and around the world, as we go about our daily lives. The FBI will relentlessly pursue every lead to rescue children who are being victimized, and bring their perpetrators to justice. We strongly urge members of the public to help us in our fight to protect children, as they are some of the most vulnerable in our community.”
FBI agents, together with the Department of Homeland Security Office of the Inspector General and the Clackamas County Sheriff’s Office in Oregon, investigated this case with assistance from the Real County Sheriff’s Office. Assistant U.S. Attorney Tracy Thompson prosecuted this case on behalf of the government.
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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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.Federal Jury in Waco Convicts California Drug Courier for Attempting to Transport Approximately 21 Pounds of Methamphetamine to WacoRead the Press Release
In Waco this afternoon, a federal jury convicted 27–year-old Francisco Resendez Martinez of Gonzales, CA, for attempting to deliver approximately 21 pounds of methamphetamine from California to Waco, announced U.S. Attorney John F. Bash and Drug Enforcement Administration (DEA) Acting Special Agent in Charge Steven S. Whipple, Houston Field Division.
Jurors convicted Martinez of one count of conspiracy to possess with intent to distribute methamphetamine. Evidence presented during trial revealed that for more than a year and a half, DEA agents were investigating a drug trafficking operation led by 38-year-old Waco resident Johnny Casillas. On February 26, 2018, California Highway Patrol deputies stopped a vehicle on I-40 in San Bernardino, CA, being driven by the defendant. Upon searching the vehicle, authorities discovered the methamphetamine contained in 23 packages inside a suitcase.
Following the verdict, Judge Albright remanded Martinez to the custody of the U.S. Marshals Service. Martinez faces between ten years and life in federal prison. Sentencing is scheduled for May in front of U.S. District Judge Alan D. Albright in Waco.
Jurors today acquitted Martinez’s co-defendant, 55-year-old Los Angeles area resident Patricia Ferrer, of the drug conspiracy charge. Casillas and another co-defendant, 42-year-old Veronica Real of Hesperia, CA, are awaiting sentencing after pleading guilty to the drug conspiracy charge—Casillas, on May 8, 2018, and Real, on December 18, 2018. Sentencing for Casillas and Real is scheduled for 9:30am on February 25, 2020, before Judge Albright. Like Martinez, Casillas and Real face between ten years and life in federal prison.
The DEA, together with the McLennan County Sheriff’s Office, Texas Department of Public Safety, Riverside County (CA) Sheriff’s Office, California Highway Patrol, and U.S. Border Patrol investigated this case. Assistant U.S. Attorney Stephanie Smith-Burris is prosecuting this case on behalf of the government.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150YearsFederal Jury in Del Rio Convicts Honduran National of Illegal Re-Entry and Assaulting U.S. Border Patrol AgentsRead the Press Release
In Del Rio last night, a federal jury convicted 49–year-old Honduran National Leivin Pineda for illegal re-entry into the U.S. and assaulting a U.S. Border Patrol agent near Eagle Pass, announced U.S. Attorney John F. Bash and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
Evidence presented during trial revealed that on September 2, 2018, U.S. Border Patrol agents observed the defendant, who they believed to be an illegal alien, walking along FM 1907 in Maverick County. The agents attempted to approach Pineda, but he fled on foot into the brush. At several points during the foot chase, Pineda threw softball-sized rocks at a high velocity towards the agents’ heads. During the pursuit, the agents repeatedly gave verbal commands to stop, but Pineda refused. Due to Pineda’s actions and that the rocks thrown at the agents could cause serious physical injury or death, a pursuing agent drew his firearm and shot Pineda in the upper chest/left upper arm area in order to neutralize the threat.
Testimony also revealed that Pineda had illegally entered the U.S. on three previous occasions. He was last removed from the U.S. on July 13, 2018, in Alexandria, LA.
Following the incident, Pineda received medical treatment and was released from the hospital. Pineda has since remained in federal custody.
Pineda faces up to 20 years in federal prison on the assault charge and up to two years in federal prison for illegal re-entry. Sentencing is scheduled for later this year in front of U.S. District Judge Alia Moses in Del Rio.
The FBI, Department of Homeland Security Office of Inspector General (DHS OIG) and U.S. Customs and Border Protection Office of Professional Responsibility (CBP OPR) investigated this case. Assistant U.S. Attorney John Kennedy and Joshua Banister are prosecuting this case on behalf of the government.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150YearsSan Antonio Area Pharmaceutical Sales Representative Sentenced to Prison for Paying over $400K in Bribes to Physicians and Physician AssistantsRead the Press Release
In San Antonio this morning, a federal judge sentenced 46-year-old former pharmaceutical sales representative Holly Blakely, of San Antonio, TX, to 30 months in federal prison for a Bribery/Health Care Fraud scheme that netted her over $1 million, announced U.S. Attorney John Bash, FBI Special Agent in Charge Christopher Combs, San Antonio Division, and Texas Attorney General Ken Paxton.
In addition to the prison term, Senior U.S. District Judge Fred Biery ordered that Blakely pay $ 1,746,222 in restitution and be placed on supervised release for a period of 3 years after completing her prison term. Federal authorities had previously forfeited approximately $88,800 in proceeds from the sale of Blakely’s house. Judge Biery also ordered Blakely, who remains on bond, to surrender to the U.S. Marshals Service by June 15, 2020, in order to begin her prison term.
On February 21, 2019, Blakely pleaded guilty to one conspiracy count that involved wire fraud, Health Care Fraud, violating the Texas Commercial Bribery statute, and paying and receiving illegal kickbacks.
According to court records, from February 2013 through December 2014, Blakely and others submitted numerous fraudulent prescriptions on behalf of unsuspecting individuals to two different pharmacies for compounding medications. Numerous prescriptions were for patients who never sought treatment from the medical professional who wrote, or whose name was used to obtain, the prescription.
Blakely received commissions from pharmacies based on the amount of money the pharmacies received from private and government health care insurers for prescriptions submitted by conspirators and filled by the pharmacies. Blakely, in turn, paid kickbacks to medical professionals to induce them into writing prescriptions for insured patients.
The total loss amount due to the defendant’s scheme was approximately $8,846,972.
The FBI, together with investigators from DEA Diversion, the Texas Attorney General’s Medicaid Fraud Control Unit, Texas Department of Public Safety; Office of Professional Management – Office of the Inspector General (OPM - OIG); Defense Criminal Investigation Service (DCIS) and Air Force Office of Investigations (AFOSI) investigated this case. Assistant U.S. Attorneys Justin Chung and Antonio Franco, Jr. are prosecuting this case on behalf of the Government, with assistance from Steven Seward of the Financial Litigation Unit.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Federal Jury in Austin Convicts Armed Bank RobberRead the Press Release
In Austin today, a federal jury convicted an Austin man for his commission of multiple Austin-area armed bank robberies that occurred in 2018, stated U.S. Attorney John F. Bash, FBI Special Agent in Charge Christopher Combs, San Antonio Division, Austin Police Chief Brian Manley and San Marcos Interim Police Chief Bob Klett.
The jury convicted 59-year-old Rodney Glenn Green (aka “Rodney Glen Fayson”) of five counts of bank robbery, five counts of brandishing a firearm during a crime of violence, and one count of being a convicted felon in possession of a firearm.
U.S. Attorney Bash said in response to the verdict: “I am pleased that an Austin jury today returned a verdict of guilty on all counts against a man who committed multiple armed bank robberies in our community. Our federal prosecutors and agents are working hard to keep our cities safe and to protect our financial system.”
Evidence presented during trial revealed that Green committed the following armed bank robberies:
- January 24, 2018 – Chase Bank in Austin – Green stole approximately $4,000;
- February 8, 2018 – BBVA Compass Bank in Austin – Green stole approximately $3,337;
- February 24, 2018 – BBVA Compass Bank in Austin – Green stole approximately $11,939;
- April 7, 2018 – BB&T Bank in Austin – Green stole approximately $5,495; and
- April 28, 2018 – Bank of America in San Marcos – Green stole approximately $10,841.
Evidence introduced at trial revealed that Green committed all five bank robberies in a similar manner. He wore gloves, a mask, and a black hooded sweatshirt or jacket, and brandished a small semi-automatic handgun while demanding money from bank tellers. Approximately a day after the last of the five robberies, federal agents and police officers apprehended Green and searched his hotel room, vehicle, and storage unit pursuant to search warrants. In addition to finding currency still wrapped in bank straps that Green had in a bag on his person, law enforcement discovered a number of distinctive items in Green’s possession that were visible on surveillance images of the robberies. The police recovered from the storage unit a black hooded sweatshirt that appeared to match the one worn by the robber during the last four robberies. They also found a small semi-automatic handgun with Green’s fingerprint on the magazine, as well as two pairs of work gloves that were recognizable from the surveillance images because of brand names and logos printed on the backs of the gloves. One pair of gloves, recovered from Green’s vehicle, was stained with pink dye, apparently from a dye pack that was among the bills that Green took from one of the robberies. While reviewing some of the physical evidence, the police subsequently recovered a distinctive home-made mask that appeared to match the mask that the robber wore during the last two robberies. The mask was located inside of a sleeve of the sweatshirt recovered from Green’s storage unit.
The bank robbery crimes of which Green was convicted carry a maximum sentence of up to twenty years in federal prison. The brandishing a firearm during a crime of violence crimes of which Green was convicted carry a minimum sentence of seven years in federal prison, with a maximum sentence of life imprisonment. The felon in possession crime of which Green was convicted carries a maximum sentence of up to ten years in federal prison. Green remains in federal custody. Sentencing will occur before U.S. District Judge Robert Pitman in Austin at a date to be determined by the Court.
The FBI; Central Texas Violent Crimes Task Force; Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); Austin Police Department and San Marcos Police Department investigated this case. Assistant U.S. Attorneys Matt Harding, Gabriel Cohen, Alan Buie, and Robert Almonte are prosecuting this case for the government.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Federal Grand Jury in San Antonio Indicts Former Air Force Employee, Ashburn, VA-Based Quantadyn Corporation, and Its Owner for Alleged Bribery and Government Contract Fraud SchemeRead the Press Release
In San Antonio today, a federal judge unsealed a grand jury indictment charging a software engineering company called Quantadyn Corporation (Quantadyn); one of its owners, 59-year-old Herndon, VA, resident David Joseph Bolduc, Jr.; 53-year-old San Antonio resident Keith Alan Seguin, and 70-year-old Atlanta, GA, area resident Rubens Wilson Fiuza Lima for their roles in a bribery and government contract fraud scheme that spanned more than a decade and impacted contract awards worth hundreds of millions of dollars.
That announcement was made today by U.S. Attorney John F. Bash; Special Agent in Charge Jamie Willemin of the Government Services Administration—Office of the Inspector General (GSA-OIG), Greater Southwest and Rocky Mountain Investigations Division; Acting Special Agent in Charge Ruben Rosalez 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.
The indictment alleges the defendants carried out their contract fraud scheme from 2006 to 2018. Specifically, Bolduc and Quantadyn paid more than $2.3 million in bribes to Seguin, a civilian employee of the 502 Trainer Development Squadron at Randolph Air Force Base in San Antonio, who was intimately involved in the government contract process. In return, Seguin used his position to steer lucrative government contracts and sub-contracts to Quantadyn for aircraft and close-air-support training simulators. 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 ten percent fee.
The three-count indictment charges Bolduc, Quantadyn, Seguin and Fiuza Lima 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, Seguin and Fiuza Lima would face terms of imprisonment up to five years 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 $1,000,000 in fines, and Quantadyn would face up to $1,500,000 in fines. All of the defendants, would be ordered to pay restitution if convicted.
“Allegations related to the exploitation of major federal procurement vehicles will always be an investigative priority. The General Services Administration, Office of Inspector General, with our law enforcement partners, will continue to work diligently to protect the integrity of federal acquisitions, and other critical GSA programs that are designed to benefit its customers, including the warfighter,” stated GSA-OIG Special Agent in Charge Willemin, Greater Southwest and Rocky Mountain Investigations Division.
“Government contracts are designed to support the missions of the United States armed forces and are vital to our people. It is not a slush fund for thieves and fraudsters,” said IRS-CI Acting Special Agent in Charge Rosalez. “Those who illegally target our nation’s tax dollars for personal financial gain, as in this case, will be prosecuted and face the consequences of their actions.”
“DCIS, the Pentagon's investigative arm, will aggressively pursue allegations of fraud and corruption impacting the Department of Defense (DoD)," stated Michael Mentavlos, Special Agent in Charge, Southwest Field Office. "Along with our Law Enforcement partners, DCIS is committed to safeguarding the integrity of taxpayer resources and will exhaust all appropriate criminal, civil, and administrative actions against those individuals that choose to defraud the government, DoD, and ultimately the taxpayer.”
“The collaboration between GSA-OIG, DCIS, U.S. Army CID, IRS-CI, AFOSI, and the U. S. Attorney’s Office of the Western District of Texas, has been significant and we are looking forward to seeing the final results of the hard work put forth by all agencies involved,” said AFOSI Special Agent in Charge Holmstrand.
Initial appearances are expected to occur this week before a U.S. Magistrate Judge in San Antonio (Seguin), Alexandria, VA (Bolduc), and Atlanta (Fiuza Lima).
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 John Bash extends his 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 on behalf of the government.
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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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Statement by U.S. Attorney John F. Bash on Law Enforcement Appreciation DayRead the Press Release
“Today is Law Enforcement Appreciation Day. I am profoundly grateful for the service that our law enforcement officers render to our community and our Nation. They risk their lives and wellbeing every day to protect us. They are often overworked and underpaid. Yet with no hesitation, they run toward danger. They place the needs of others above their own. They are the backbone of our community. Our way of life is not possible without the rule of law and the protection of the vulnerable from violence and exploitation. Without them, our society simply would not work.
In 2019, eleven law-enforcement officers in the Western District of Texas died in the line of duty. Just this week I attended the funeral of Detective Cliff Martinez of the San Antonio Independent School District Police Department. Detective Martinez was killed last month while protecting others. I was deeply moved to hear about his devotion to the community and his decades-long service as a police officer. As his father said: ‘He was a protector.’ The same could be said of all our fallen brothers and sisters in blue.
Today, and every day, my hope is that our law-enforcement officers understand that the vast majority of their fellow citizens see them as the heroes they are. It is an honor and a privilege to serve as your United States Attorney.”
Federal Authorities Arrest Owner and Chief Operating Officer of TPC Family Medicine and Urgent Care Clinics in San Antonio and LaredoRead the Press Release
In San Antonio, a federal grand jury indicted 46–year-old licensed Physician’s Assistant Christopher Felix Montoya and 40–year-old Nancy Almaguer for their roles in a Health Care Fraud, bribery and kickback scheme, announced U.S. Attorney John Bash, FBI Special Agent in Charge Christopher Combs, San Antonio Division, and Texas Attorney General Ken Paxton.
The indictment, returned Wednesday and unsealed today, charges Montoya, the owner and operator of TPC Family Medicine and Urgent Care Clinics in San Antonio and Laredo (TPC), and TPC Chief Operating Officer Almaguer with one count of conspiracy to pay and receive health care kickbacks and three counts of soliciting and receiving illegal health care kickbacks. Each count calls for up to five years in federal prison upon conviction.
The indictment alleges that from September 2018 to June 2019, the defendants schemed to enrich themselves by receiving kickbacks and bribes in exchange for sending patient nasal swabs to a specific laboratory (lab) for testing. The lab would perform the testing, receive reimbursement from Medicare and other insurance programs. The lab, through a 3rd party, would pay kickbacks to Montoya and Almaguer.
FBI agents arrested both defendants yesterday afternoon without incident. During an initial appearance today in San Antonio, U.S. Magistrate Judge Elizabeth S. Chestney set $50,000 bonds for both Montoya and Almaguer.
The FBI, Texas Attorney General’s Office, U.S. Department of Health and Human Services—Office of Inspector General and the U.S. Office of Professional Management—Office of Inspector General investigated this case. Assistant U.S. Attorney Justin Chung is prosecuting this case on behalf of the government.
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.
Austin-Based Nigerian National Sentenced to Federal Prison for Role in Furthering a Conspiracy to Commit Money LaunderingRead the Press Release
In Austin today, a federal judge sentenced a Nigerian National residing in Austin to 78 months in federal prison for laundering more than $1.7 Million in Business Email Compromise (BEC) scam proceeds stolen from multiple companies, announced U.S. Attorney John F. Bash; Special Agent in Charge Shane Folden, Homeland Security Investigations (HSI), San Antonio; and, Inspector in Charge Adrian Gonzalez, U.S. Postal Inspection Service (USPIS), Houston Division
In addition to the prison term, U.S. District Judge Robert Pitman ordered that 28-year-old Joseph Odibobhahemen pay $1,639,419.57 in restitution; pay a $1.5 million money judgment; and, be placed on supervised release for a period of three years after completing his prison term.
In a BEC scheme, scammers target businesses and individuals making wire transfer payments, often targeting employees with access to company finances. The scammers trick the employees into making wire transfer payments to bank accounts thought to belong to trusted partners—except the money ends up in accounts controlled by the fraudsters. Sometimes the scammers use computer intrusion techniques to alter legitimate payment request emails, changing the recipient bank accounts. Sometimes they send spoofed emails from email addresses similar to the real email accounts used by trusted partners.
On February 7, 2019, Odibobhahemen pleaded guilty to one count of conspiracy to commit money laundering. Odibobhahemen’s co-defendant in this indictment, Nosa Onaghise, pleaded guilty to one count of passport fraud on December 28, 2018. Onaghise, another Nigerian citizen residing in Austin, admitted to attempting to use a false, forged or counterfeit passport to open several bank accounts in the U.S. in April 2018. Onaghise faces up to ten years in federal prison. He remains in federal custody pending sentencing scheduled for 10:00am on February 19, 2020, before Judge Pitman.
Court records in this indictment (A18cr358), and the indictment also returned in Austin against four other coconspirators (A19cr78), show that between November 2016 and April 2019, over $10 million was allegedly sent by victims to accounts controlled by the conspirators, who were able to take in excess of $6 million before law enforcement or financial institutions stopped the fraudulent transfers. Odibobhahemen and the others acquired or controlled dozens of bank accounts opened in the U.S., including in Austin, utilizing fraudulent identification documents, including fraudulent foreign passports in fake names. Once the funds were fraudulently procured and deposited into these bogus accounts, the defendants worked quickly to withdraw or transfer the funds.
The four additional co-conspirators—Bameyi Omale, Chinonso Agbaji, Igho Calaba and Chibuzor Uba—have all pleaded guilty and await sentencing on January 30, 2020.
“This sentencing serves as a real warning to those who use deception to victimize our citizens while defrauding the financial system for personal gain,” said Shane Folden, special agent in charge for HSI San Antonio. “HSI is committed to pursuing thieves such as Mr. Odibobhahemen who brazenly enrich themselves through fraud. HSI will continue to utilize its broad investigative authorities to dismantle transnational criminal organizations who blatantly ignore the laws of this nation.”
Special agents with HSI and USPIS investigated this case. Assistant U.S. Attorneys Michael Galdo and Keith Henneke are prosecuting this case on behalf of the Government.
Temple Man Sentenced to Federal Prison for Sex Trafficking Two MinorsRead the Press Release
In Waco today, a federal judge sentenced 26-year-old Riheem Rexdual Robinson (aka “Phat”) to 260 months in federal prison for sex trafficking two minors, announced U.S. Attorney John F. Bash and FBI Special Agent in Charge Christopher Combs, San Antonio Division, and Interim Temple Police Chief Jim Tobin.
In addition to the prison term, U.S. District Judge Alan Albright ordered that Robinson pay a $2,000 fine and be placed on supervised release for a period of ten years after completing his prison term.
On August 6, 2019, Robinson pleaded guilty to two counts of sex trafficking of children. By pleading guilty, Robinson admitted that in April 2012, he recruited, enticed, harbored and transported a minor and caused that minor to engage in a commercial sex act for which Robinson profited financially. Robinson also admitted to committing the same acts with a second minor in October 2016.
“Our children are our nation’s most precious resource,” said FBI San Antonio Division Special Agent in Charge Christopher Combs. “Those who would recruit and exploit them for the purpose of underage prostitution will have to answer for their despicable crimes, and that’s the strong message that was sent in today’s sentencing.”
The FBI and the Temple Police Department investigated this case. Assistant U.S. Attorneys Mary Kucera and Greg Gloff prosecuted this case on behalf of the government.
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.
Kerrville Man Sentenced to 460 Months in Federal Prison for Cyberstalking and Possession of Child PornographyRead the Press Release
In San Antonio today, 46-year-old Christopher Zamarripa was sentenced to 460 months in federal prison for cyberstalking and possession of child pornography, announced U.S. Attorney John F. Bash and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
In addition to the prison term, U.S. District Judge Fred Biery also ordered that Zamarripa be placed on supervised release for the remainder of his life after completing his prison term.
On August 15, 2019, Zamarripa pleaded guilty to ten counts of cyberstalking and one count of possession of child pornography. According to court records, Zamarripa caused substantial emotional distress to his victims by altering photographs of their faces he downloaded from the Internet and placing them onto photographs of bodies engaged in explicit sexual activities, which he then uploaded to online pornographic websites. Zamarripa also uploaded to the same online pornographic websites unaltered images of two child victims.
On August 22, 2017, Kerr County sheriff’s deputies seized Zamarripa’s laptop computer. A subsequent forensics analysis of the laptop revealed the presence of child pornography.
Zamarripa has remained in custody since his arrest by FBI agents on May 20, 2019.
This investigation was conducted by the FBI in San Antonio and the Kerr County Sheriff’s Office. Assistant U.S. Attorney Bettina Richardson prosecuted this case on behalf of the government.
New Hampshire Man Sentenced to Federal Prison for Laundering Money Stolen from Texas RetireesRead the Press Release
In Austin today, a federal judge sentenced 35-year-old Lukman Shina Aminu of Manchester, NH, to 51 months in federal prison today for his alleged scheme to launder over a million dollars from multiple fraudulent schemes, including thousands stolen from former Texas state employees retirement plans, announced U.S. Attorney John F. Bash, FBI Special Agent in Charge Christopher Combs, San Antonio Division, IRS-Criminal Investigation Special Agent in Charge Richard D. Goss, Houston Field Office, and Texas Department of Public Safety Director Steven McCraw.
In addition to the prison term, U.S. District Judge Robert Pitman ordered that Aminu pay $1,158,285.14 in restitution and be placed on supervised release for a period of three years after completing his prison term.
On January 2, 2019, Aminu pleaded guilty to one count of conspiracy to commit money laundering. By pleading guilty, Aminu admitted that beginning in June 2017, he used personally identifiable information (PII) from state employees to make changes to their accounts in the Employees Retirement System of Texas internet portal. Bank deposit information on file in the system was changed which re-routed retirement payments to debit cards Aminu controlled. Aminu then used the debit cards for cash withdrawals and to purchase money orders which were used for personal expenses and to purchase used vehicles to be shipped overseas to Nigeria and Benin for resale. Aminu also admitted to receiving multiple transfers from victims of other schemes on other debit cards that had been opened using their PII. This scheme also involved using car purchases and shipments to send money back to Nigeria (in the value of the shipped car), while simultaneously laundering the funds or “cleaning the money” to make the money appear as legitimate income.
“Today’s sentencing is a message to all who seek to deceitfully defraud others for personal gain,” said FBI San Antonio Division Special Agent in Charge Christopher Combs. “In this case, the defendant’s actions robbed former Texas public servants of their retirement payments. These selfish actions harmed countless families as the defendant then used the money to purchase used vehicles and ship them to be sold overseas. The FBI will not rest until those who perpetrate these crimes are brought to justice.”
The FBI, IRS-Criminal Investigation and the Texas Department of Public Safety – Public Integrity Unit investigated this case. Assistant U.S. Attorney Michael Galdo prosecuted this case on behalf of the government.
Federal Judge Orders Bradley Croft, Owner of Dog Training/Handler School in San Antonio, to Forfeit Proceeds from Government Fraud SchemeRead the Press Release
In San Antonio today, a federal judge ordered 48-year-old Bradley Lane Croft, owner of Universal K-9, Inc., to forfeit over one million dollars in assets derived from his scheme to defraud the federal government with respect to the use of GI Bill benefits to train service canines and their handlers, announced U.S. Attorney John F. Bash; FBI Special Agent in Charge Christopher Combs, San Antonio Division; Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge Richard D. Goss, Houston Field Office; and, U.S. Department of Veterans Affairs Office of Inspector General (VA-OIG) Criminal Investigations Division Special Agent in Charge James Ross, South Central Field Office.
Senior U.S. District Judge David A. Ezra ordered that Croft forfeit to the government his assets including: his San Antonio business property (15000 block of Tradesman); $138,415.64 in U.S. Currency seized from his bank account; $4,300 in U.S. Currency 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 Jetski; 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.
On November 6, 2019, Judge Ezra convicted Croft of 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 provided at trial revealed that beginning in 2013, Croft provided false information in applications to the Texas Veterans Commission, including instructors’ names, certifications and training documents indicating that certain individuals would be instructors at the school, 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 course that cost from $6,500.00 for the K-9 Handler dual-purpose detection program to $12,000.00 for the K-9 trainer/instructor program. Since 2016, Universal K-9 filed approximately 185 claims relating to the education of approximately 132 veterans and totaling over $1,260,000.00. 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.
Croft, who remains in federal custody, faces up to 20 years in federal prison for wire fraud, up to 20 years in federal prison for money laundering and up to two years in federal prison for aggravated identity theft. Sentencing is scheduled for 1:30pm on February 24, 2020, in San Antonio before Judge Ezra.
The FBI, IRS-CI, and the VA-OIG investigated this case. Assistant U.S. Attorneys Gregory J. Surovic and Fidel Esparza, III, are prosecuting this case on behalf of the government.
Federal Grand Jury in Austin Indicts Nigerian Citizen for Victimizing Previous Fraud VictimsRead the Press Release
A federal grand jury in Austin indicted a Nigerian citizen for masquerading as a representative of the Texas State Securities Board to steal money from victims of a previous fraud scheme, announced U.S. Attorney John F. Bash, Special Agent in Charge Christopher Combs of the FBI’s San Antonio Division, and Texas State Securities Board Commissioner Travis J. Iles.
The grand jury indictment, returned yesterday, charges 27–year-old Ekeoma Jerry Onyeukwu (aka “Jerry Ekeoma Onyeukwu”) with two counts of wire fraud.
The Texas State Securities Board (TSSB) is a state agency whose mission is to protect Texas investors, including by regulating securities and enforcing the Texas Securities Act. In early 2018, an England-based cryptocurrency exchange called BitConnect shut down following a cease and desist order from the TSSB. According to the indictment, from November 2018 through April 2019, fictitious websites similar to that of TSSB including “ssb-texas.us” and “ssb-tesax.us” were created to falsely claim that TSSB controlled BitConnect and that TSSB was going to return a portion of the losses incurred by BitConnect victims and encouraged them to sign up. Onyeukwu, subsequently, sent emails to Texas residents falsely presenting himself as a TSSB representative who could provide clients with refunds of 35% of money invested in BitConnect in exchange for a $300 “consent fee.” Onyeukwu led investors to believe that their $300 fee was going to TSSB, but in reality, Onyeukwu was pocketing the cash.
The FBI together with the TSSB are investigating this case. An arrest warrant has been issued for Onyeukwu. Upon conviction, he faces up to 20 years in federal prison for wire fraud. Assistant U.S. Attorney Neeraj Gupta is prosecuting this case on behalf of the government.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendant is innocent until proven guilty in a court of law.
Austin Man Pleads Guilty to Assaulting Federal OfficerRead the Press Release
In Austin today, 21-year-old Candido Rodriguez, III, admitted to assaulting a Transportation Security Administration (TSA) security officer last month, announced U.S. Attorney John F. Bash and FBI Special Agent in Charge Christopher Combs.
Appearing before U.S. Magistrate Judge Susan Hightower, Rodriguez pleaded guilty to one count of assaulting a federal officer. Rodriguez, who faces up to 20 years in federal prison, remains in federal custody pending sentencing. No sentencing date has been scheduled.
On November 5, 2019, the victim was driving to work at the Austin Bergstrom International Airport and stopped at a traffic light just before the airport entrance. According to the factual basis filed in this case, to which Rodriguez admitted in court, Rodriguez approached the victim, who was behind the wheel of the vehicle the driver’s side window open several inches. The victim was wearing an official TSA uniform with TSA insignia plainly visible. Rodriguez engaged in a brief verbal exchange with the victim, during which he referred to the victim being an “officer.” The victim responded by stating that the victim was employed as a security officer at the airport. Rodriguez then forcibly opened the driver’s side door of the vehicle and began striking, scratching and cutting the victim’s head, face and right hand with a piece of broken glass or other sharp object.
The victim ultimately escaped from Rodriguez by accelerating through the intersection and onto airport property. A number of stitches were necessary to close cuts on the victim’s face and right hand.
The FBI conducted this investigation. Assistant U.S. Attorney Alan Buie is prosecuting this case on behalf of the government. The U.S. Attorney’s Office appreciates the contributions of the Austin Police Department and the Travis County Sheriff’s Office.
Waxahachie Man Sentenced to Four Years in Federal Prison for Extorting Women for Sexually Explicit Photographs and VideosRead the Press Release
In El Paso, a federal judge sentenced 32–year-old James Alger of Waxahachie, TX, to four years in federal prison for his scheme to extort females into sending him sexually explicit photos and videos, announced U.S. Attorney John F. Bash and FBI Special Agent in Charge Luis Quesada, El Paso Division.
On December 6, 2019, Senior U.S. District Judge David Briones sentenced Alger to two years imprisonment for wire fraud, cyberstalking, and interstate communications with intent to extort followed by two years imprisonment for aggravated identity theft. Judge Briones also ordered that Alger be placed on supervised release for a period of three years after completing his prison term.
On April 2, 2019, Alger pleaded guilty to all four charges. By pleading guilty, Alger admitted that from 2016 to 2018, he messaged over 1,000 women he found through social media in an effort to obtain sexually explicit videos and pictures of them. Alger admitted that he would pretend to be one of several wealthy, famous individuals who would then offer to pay a large sum of money to have sex with the women he targeted. He managed to convince over 100 women to send him nude photos and videos, then subsequently demanded his victims continue sending him more sexually explicit videos and photos or he would release the explicit material in his possession to the victim’s friends and family.
The FBI conducted this investigation. Assistant U.S. Attorney Ian Hanna prosecuted this case on behalf of the government.
Convicted Felon in Austin Faces Federal Ammunition Possession ChargeRead the Press Release
In Austin this afternoon, federal authorities filed a criminal complaint charging 33–year-old Timothy Maurice Selmon with being a convicted felon in possession of ammunition, announced U.S. Attorney John F. Bash, Special Agent in Charge Christopher Combs of the FBI’s San Antonio Division, Austin Police Chief Brian Manley and Special Agent in Charge Fred Milanowski of the Bureau of Alcohol, Tobacco, Firearms and Explosive’s (ATF) Houston Division.
According to the criminal complaint, Austin Police (APD) officers earlier today responded to a local retail outlet after receiving a report of a man in the store restroom who was in possession of a pipe and several shotgun shells and appeared to be attempting to construct a pipe bomb. When store security officers confronted Selmon, he left the store and proceeded to a nearby bus stop. APD officers found Selmon on a transit bus at the bus stop. While taking him into custody, APD officers discovered two PVC pipes capped with duct tape underneath the seat occupied by the defendant and numerous shotgun shells inside his jacket pocket. An APD Explosive Ordinance Disposal unit conducting a protective sweep of the store bathroom recovered a single matching shotgun shell and a butane bottle inside the bathroom stall.
This investigation continues. No one was injured during this incident. Individuals inside both the bus and the store were evacuated as a precaution.
According to the criminal complaint, Selmon’s criminal history includes two felony burglary convictions—one in August 2014, and one in October 2008—and one felony conviction for manufacture/delivery of a controlled substance in October 2008.
Upon conviction of the felon-in-possession charge, Selmon faces up to ten years in federal prison. He remains in custody. Selmon’s initial appearance in Austin before U.S. Magistrate Judge Susan Hightower is expected to occur tomorrow.
The FBI’s Joint Terrorism Task Force (JTTF), Austin Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) are investigating this case. Assistant U.S. Attorney Karthik Srinivasan and Michael Galdo are prosecuting this case on behalf of the government.
It is important to note that a criminal complaint is merely a charge and should not be considered as evidence of guilt. The defendant is innocent until proven guilty in a court of law.
San Diego, California Man Pleads Guilty to Role in Million Dollar Scheme Targeting Thousands of U.S. Servicemembers and VeteransRead the Press Release
In San Antonio, 32-year-old Trorice Crawford of San Diego, California, admitted his role in an identity-theft and fraud scheme that victimized thousands of U.S. servicemembers and veterans, announced U.S. Attorney John F. Bash, Deputy Assistant Attorney General David Morrell, and Director Gustav Eyler of the Department of Justice’s Consumer Protection Branch.
Appearing before U.S. Magistrate Judge Richard Farrer yesterday afternoon, Crawford pleaded guilty to one count of conspiracy to launder monetary instruments. By pleading guilty, Crawford admitted that from May 2017 to July 2019, he conspired with Robert Wayne Boling, Jr. (a U.S. citizen), and others to steal money belonging to U.S. Servicemembers and veterans. By pleading guilty, Crawford admitted to recruiting at least 30 individuals (aka “money mules”) who provided their bank account information to receive funds stolen from military affiliated individuals. On average, each unauthorized transfer from a victim’s accounts ranged from between $8,000 to $13,000. Crawford kept a percentage of the withdrawn funds for himself and oversaw the transmission of the remaining amounts by means of international money remittance services to Boling and others in the Philippines.
Crawford faces up to 20 years in federal prison. He remains in federal custody awaiting sentencing scheduled for 10:30am on March 5, 2020, before Chief U.S. District Judge Orlando Garcia in San Antonio.
In October, co-defendant Frederick Brown, age 38 of Las Vegas, NV, pleaded guilty to federal charges in connection with this scheme. Brown, a former civilian medical records administrator for the U.S. Army at the 65th Medical Brigade, Yongsan Garrison, South Korea, admitted that while logged into the Armed Forces Health Longitudinal Technology Application, he illegally captured on his cell phone personal identifying information (PII) of thousands of military members, including names, social security numbers, DOD ID numbers, dates of birth, and contact information. Brown further admitted that he subsequently provided that stolen data to Boling so that Boling and others could exploit the information in various ways to access Department of Defense and Veterans Affairs benefits sites and steal millions of dollars.
As asserted in the federal grand jury indictment, Boling, together with his Philippines-based co-defendants Allan Albert Kerr (Australian citizen) and Jongmin Seok (South Korean citizen), specifically used the stolen information to compromise a Department of Defense portal designed to enable military members to access benefits information online. Once through the portal, the defendants are alleged to have accessed benefits information. Access to these detailed records enabled the defendants to steal or attempt to steal millions of dollars from military members’ bank accounts. The defendants also stole veterans’ benefits payments. Evidence of the defendants’ scheme was detected earlier this year, advancing the investigation that led to the indictment.
The Departments of Defense and Veterans Affairs are coordinating with the Department of Justice to notify and provide resources to the thousands of identified victims. Announcements also will follow regarding steps taken to secure military members’ information and benefits from theft and fraud.
Boling, Kerr and Seok are charged with multiple counts of conspiracy, wire fraud, and aggravated identity theft. Boling, Kerr and Seok are in custody in the Philippines awaiting transfer to the Western District of Texas. Brown remains in federal custody awaiting sentencing scheduled for 10:30am on February 6, 2020, before Chief U.S. District Judge Orlando Garcia in San Antonio.
It is important to note that an indictment merely alleges that crimes have been committed. All defendants are presumed innocent until proven guilty beyond a reasonable doubt.
The United States is represented by Trial Attorneys Ehren Reynolds and Yolanda McCray Jones of the Department of Justice’s Consumer Protection Branch and Assistant U.S. Attorney Joseph Blackwell of the U.S. Attorney’s Office for the Western District of Texas. The matter was investigated by agents of the Defense Criminal Investigative Service, and counsel Matthew Freund, along with substantial investigative support from the U.S. Postal Inspection Service, the U.S. Army Criminal Investigation Command, and the Veterans Benefits Administration’s Benefits Protection and Remediation Division. The U.S. Department of State’s Diplomatic Security Service, Philippine law enforcement partners, and the U.S. Attorneys’ Offices for the District of Nevada, the Southern District of California, and the Eastern District of Virginia also provided assistance. Resources from the Department of Justice’s Servicemembers and Veterans Initiative and its Transnational Elder Fraud Strike Force aided in the matter’s investigation and prosecution.
Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. In particular, this past March, the Department announced the largest elder fraud enforcement action in American history, charging more than 260 defendants in a nationwide elder fraud sweep. The Department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act.
Additional information about the Consumer Protection Branch and its enforcement efforts can be found at www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Western District of Texas, visit its website at https://www.justice.gov/usao-wdtx. Information about the Department of Justice’s Elder Fraud Initiative is available at www.justice.gov/elderjustice; information on the Servicemember and Veterans Initiative is at https://www.justice.gov/servicemembers.
California Man Pleads Guilty to Role in Million Dollar Scheme Targeting Thousands of U.S. Servicemembers and VeteransRead the Press Release
The Department of Justice announced today that Trorice Crawford, 32, of San Diego, California, admitted his role in an identity-theft and fraud scheme that victimized thousands of U.S. servicemembers and veterans.
Appearing before U.S. Magistrate Judge Richard Farrer yesterday afternoon, Crawford pleaded guilty to one count of conspiracy to launder monetary instruments. By pleading guilty, Crawford admitted that from May 2017 to July 2019, he conspired with Robert Wayne Boling Jr. (a U.S. citizen), and others to steal money belonging to U.S. Servicemembers and veterans. By pleading guilty, Crawford admitted to recruiting at least 30 individuals (aka money mules) who provided their bank account information to receive funds stolen from military affiliated individuals. On average, each unauthorized transfer from a victim’s accounts ranged from between $8,000 to $13,000. Crawford kept a percentage of the withdrawn funds for himself and oversaw the transmission of the remaining amounts by means of international money remittance services to Boling and others in the Philippines.
Crawford faces up to 20 years in federal prison. He remains in federal custody awaiting sentencing scheduled for 10:30am on March 5, 2020, before Chief U.S. District Judge Orlando Garcia in San Antonio.
In October, co-defendant Frederick Brown, age 38 of Las Vegas, Nevada, pleaded guilty to federal charges in connection with this scheme. Brown, a former civilian medical records administrator for the U.S. Army at the 65th Medical Brigade, Yongsan Garrison, South Korea, admitted that while logged into the Armed Forces Health Longitudinal Technology Application, he illegally captured on his cell phone personal identifying information (PII) of thousands of military members, including names, social security numbers, DOD ID numbers, dates of birth, and contact information. Brown further admitted that he subsequently provided that stolen data to Boling so that Boling and others could exploit the information in various ways to access Department of Defense and Veterans Affairs benefits sites and steal millions of dollars.
As asserted in the federal grand jury indictment, Boling, together with his Philippines-based co-defendants Allan Albert Kerr (Australian citizen) and Jongmin Seok (South Korean citizen), specifically used the stolen information to compromise a Department of Defense portal designed to enable military members to access benefits information online. Once through the portal, the defendants are alleged to have accessed benefits information. Access to these detailed records enabled the defendants to steal or attempt to steal millions of dollars from military members’ bank accounts. The defendants also stole veterans’ benefits payments. Evidence of the defendants’ scheme was detected earlier this year, advancing the investigation that led to the indictment.
Boling, Kerr and Seok are charged with multiple counts of conspiracy, wire fraud, and aggravated identity theft. Boling, Kerr and Seok are in custody in the Philippines awaiting transfer to the Western District of Texas. Brown remains in federal custody awaiting sentencing scheduled for Feb. 6, 2020, before Chief U.S. District Judge Orlando Garcia in San Antonio.
It is important to note that an indictment merely alleges that crimes have been committed. All defendants are presumed innocent until proven guilty beyond a reasonable doubt.
The Departments of Defense and Veterans Affairs are coordinating with the Department of Justice to notify and provide resources to the thousands of identified victims. Announcements also will follow regarding steps taken to secure military members’ information and benefits from theft and fraud.
The United States is represented by Trial Attorneys Ehren Reynolds and Yolanda McCray Jones of the Department of Justice’s Consumer Protection Branch and Assistant U.S. Attorney Joseph Blackwell of the U.S. Attorney’s Office for the Western District of Texas. The matter was investigated by agents of the Defense Criminal Investigative Service, and counsel Matthew Freund, along with substantial investigative support from the U.S. Postal Inspection Service, the U.S. Army Criminal Investigation Command, and the Veterans Benefits Administration’s Benefits Protection and Remediation Division. The U.S. Department of State’s Diplomatic Security Service, Philippine law enforcement partners, and the U.S. Attorneys’ Offices for the District of Nevada, the Southern District of California, and the Eastern District of Virginia also provided assistance. Resources from the Department of Justice’s Servicemembers and Veterans Initiative and its Transnational Elder Fraud Strike Force aided in the matter’s investigation and prosecution.
Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. In particular, this past March the Department announced the largest elder fraud enforcement action in American history, charging more than 260 defendants in a nationwide elder fraud sweep. The Department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act. More information about the Department of Justice’s Elder Fraud Initiative is available at www.justice.gov/elderjustice.
Additional information about the Consumer Protection Branch and its enforcement efforts can be found at www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Western District of Texas, visit its website at https://www.justice.gov/usao-wdtx. Information about the Department of Justice’s Elder Fraud Initiative is available at www.justice.gov/elderjustice; information on the Servicemember and Veterans Initiative is at https://www.justice.gov/servicemembers.
Texas Mexican Mafia Member Sentenced to 35 Years in Federal PrisonRead the Press Release
In San Antonio this afternoon, a federal judge sentenced 51-year-old Texas Mexican Mafia member Robert Eugene Hernandez (aka “Gino”) to 35 years in federal prison for his role in a conspiracy to extort money from drug traffickers operating in their territory without permission, announced U.S. Attorney John Bash and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
In addition to the prison term, U.S. District Judge Xavier Rodriguez ordered that Hernandez pay a $5,000 fine and be placed on supervised release for a period of five years after completing his prison term.
On July 2, 2019, a federal jury convicted Hernandez of one count of interference with Commerce by threats or extortion, one count of conspiracy to distribute and possess with intent to distribute methamphetamine and heroin, one count of conspiracy to possess a firearm in furtherance of a drug trafficking crime, one substantive count of possession of a firearm in furtherance of a drug trafficking crime, one count of possession with intent to distribute methamphetamine, and one count of prohibited person in possession of a firearm.
According to court records, Hernandez, a San Antonio Eastside Lieutenant, carried out his duties under the direction of Raul Ramos, Texas Mexican Mafia (TMM) Free World General based in San Antonio. The TMM leadership controls and directs collection of the drug tax. All members who participate in the collection of the tax, and the leaders who direct them, understand and agree that drug dealers are not permitted to sell drugs without paying the tax. Dealers have no choice; payment of the tax is mandatory and this rule is enforced through violence.
Once a drug dealer is identified, this information is passed up to the leadership. The leadership will make an effort to confirm this information, usually through a purchase from the drug dealer. If the information is confirmed, TMM soldiers are instructed to visit the drug dealer. If the dealer denies dealing in TMM territory without permission he is ordered to pay more. If the dealer refuses, he usually is robbed and beaten immediately. If the first visit does not convince the dealer to comply, the second visit will be a “door kick.” The front door is kicked in, armed gang members storm the home, all occupants are beaten and sometimes tied up, and anything of value is taken such as narcotics, jewelry, electronics, guns, and automobiles. After a “door kick,” all dealers begin paying the tax.
This prosecution has resulted in 37 convictions of members and associates of the Texas Mexican Mafia; 27 of which have resulted in sentences ranging from 63 months to life in federal prison. Ten defendants are awaiting sentencing.
This federal prosecution stems from an Organized Crime Drug Enforcement Task Force (OCDETF) investigation conducted by the FBI, New Braunfels Police Department, Texas Department of Public Safety and the San Antonio Police Department. Homeland Security Investigations (HSI) and the Bureau of Prisons (BOP) assisted in this investigation.
The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking operations, weapons trafficking operations, money laundering operations, violent street gangs and those primarily responsible for the nation’s illegal drug supply.
Midland Man Sentenced to 20 Years in Federal Prison for Attempted Online Enticement of a MinorRead the Press Release
In Midland today, a federal judge sentenced 37-year-old Midland resident Cole S. Crocker to 20 years in federal prison for attempting to entice a minor into sexual activity, announced U.S. Attorney John F. Bash, Texas Department of Public Safety Director Steven McCraw and FBI Special Agent in Charge Luis Quesada, El Paso Division.
In addition to the prison term, U.S. District Judge David Counts ordered that Cole pay a $50,000 fine, pay a $5,000 special assessment under the Justice for Victims of Trafficking Act (JVTA), and be placed on supervised release for a period of ten years after completing his prison term.
“The defendant in this case attempted to have sex with an eight-year-old girl—eight years old. I would say that parents can rest easy with this man in federal prison, but there are so many more predators like him. We remain committed to the fight against child abuse,” stated U.S. Attorney Bash.
On September 4, 2019, a jury convicted Crocker of one count of attempted online enticement of a minor. Evidence presented at trial revealed that on March 22, 2019, Crocker responded to an online advertisement uploaded by an FBI undercover agent. Crocker began chatting with the undercover agent via messaging applications, and the conversation quickly turned graphic and sexual in nature. The undercover agent represented to Crocker that he had access to an eight-year-old girl for sex, and Crocker expressed interest. As the chats progressed, Crocker also engaged in several recorded phone conversations with the undercover agent where they discussed the logistics of a meet-up to have sex with the eight-year-old girl. Crocker was arrested later that evening when he arrived at the purported meeting location in Midland.
This investigation and arrest was the result of a joint operation between the Texas Department of Public Safety and the FBI. Assistant U.S. Attorney Shane A. Chriesman is prosecuting this case on behalf of the Government.
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.
Mexican National Sentenced to Federal Prison for Illegally Re-Entering the U.S. and Attempting to Bribe Federal Agents after Getting CaughtRead the Press Release
In San Antonio today, Senior U.S. District Judge David A. Ezra sentenced 32-year-old Mexican National Miguel Posada-Venegas to one year in federal prison for attempting to bribe federal agents and for being in the U.S. illegally, announced U.S. Attorney John F. Bash; Immigration and Customs Enforcement -- Enforcement and Removal Operations (ICE ERO) Field Office Director Daniel Bible in San Antonio; and, U.S. Immigration and Customs Enforcement Office of Professional Responsibility (ICE OPR) Special Agent in Charge Charles Anderson in San Antonio.
On September 4, 2019, Posada-Venegas pleaded guilty to one count of re-entry after deportation and one count of bribery of a public official. According to court records, ICE-ERO officers arrested Posada-Venegas in San Antonio on June 27, 2019. By pleading guilty, the citizen of Mexico admitted that he had previously been removed from the U.S. on February 15, 2012, and had not received permission from the Secretary of Homeland Security to legally re-enter the country. In addition, Posada-Venegas admitted that he attempted to bribe the ICE-ERO officers by offering them $10,000 in U.S. Currency to let him go after they arrested him for illegal re-entry into the U.S.
ICE ERO and ICE OPR investigated this case. Assistant U.S. Attorney Brian Nowinski prosecuted this case on behalf of the government.
Judge Sentences San Antonio Businessman to Federal Prison for Health Care Fraud SchemeRead the Press Release
In San Antonio today, a federal judge sentenced 49–year-old San Antonio businessman Rafael Enrique Rodriguez to seven (7) years in federal prison for his role in a multi-million-dollar health care fraud scheme.
In addition to the prison term, Senior U.S. District Judge David A. Ezra ordered that Rodriguez pay $6,032,126.69 in restitution to the government and be placed on supervised release for a period of three (3) years after completing his prison term. Judge Ezra ordered that Rodriguez surrender to federal authorities on January 16, 2020, to begin serving his federal prison term.
U.S. Attorney John F. Bash; U.S. Department of Veterans Affairs Office of Inspector General (VA-OIG) Criminal Investigations Division Special Agent in Charge James Ross, South Central Field Office; U.S. Department of Labor Office of Inspector General (DOL-OIG) Special Agent in Charge Steven Grell, Dallas Region; Department of Labor’s Office of Workers’ Compensation Program (OWCP), Division of Federal Employee Compensation (DFEC) Director Antonio Rios; and, U.S. Postal Service Office of Inspector General (USPS-OIG) Special Agent in Charge Christopher Cave, Southern Area Field Office, made the announcement.
“The sentence imposed in this case reflects our commitment to stamping out healthcare fraud. This is not just a law-and-order issue. It’s also about making sure that Texans in need of medical treatment or other healthcare services can be confident that they are being told the truth about their care,” stated U.S. Attorney Bash.
On June 21, 2019 a federal jury convicted Rodriguez on six counts of health care fraud, five counts of wire fraud, and one count of aggravated identity theft. Rodriguez was the owner/operator of 210 Workers with offices providing physical therapy and rehabilitation services in both San Antonio and Salt Lake City, UT.
Evidence presented during trial revealed that between October 22, 2012, and December 14, 2016, Rodriguez devised a scheme to defraud the Federal Employees Compensation Act (FECA), Office of Workers Compensation Program, a federal health care benefit program designed to provide worker’s compensation services to federal employees. Specifically, Rodriguez billed the program for physical therapy and treatment using codes indicating that a qualified professional provided those services when, in fact, unlicensed technicians were providing the services. Additionally, Rodriguez used the identity of another individual, a licensed physical therapist, to obtain provider registration with the program without the permission of the therapist. Rodriguez billed the program more than $7.5 million for these services and was paid over $6 million for the fraudulently billed services.
“The Department of Labor recognizes the efforts of the OIG community and federal agencies involved, and will continue to identify potential medical provider fraud and stop abuse of the FECA program,” said OWCP DFEC Director Rios. “These fraud detection efforts continue to be a high priority for us.”
“The sentence obtained today has been the culmination of a thorough investigation completed by our agents revealing abuse by medical professionals of Federal benefits programs for personal gain," said USPS-OIG Special Agent in Charge Cave. “The USPS-OIG, along with our law enforcement partners will continue to vigorously investigate these types of cases in order to deter and stop these fraud schemes.”
“Rafael Rodriguez took advantage of injured federal workers by overbilling the U.S. Department of Labor’s Office of Workers’ Compensation Programs more than $7.5 million for therapy visits performed by unlicensed professionals. We will continue to work with our law enforcement partners and OWCP to protect the integrity of DOL’s benefits programs,” said DOL-OIG Special Agent in Charge Grell.
“Today’s sentencing comes as a result of outstanding leadership provided by the United States Attorney’s Office, and the tireless efforts of VA-OIG special agents, in partnership with other investigative agencies. These charges send a clear signal that healthcare providers entrusted with the care of injured VA employees will be held accountable for defrauding the Office of Workers’ Compensation Program,” stated VA-OIG Criminal Investigations Division Special Agent in Charge Ross.
Special agents with the USPS-OIG, VA-OIG, and DOL-OIG investigated this case. Assistant U.S. Attorney Gregory J. Surovic prosecuted this case on behalf of the government.
Leader of San Antonio-Based Heroin Trafficking Operation Sentenced to 15 Years in Federal PrisonRead the Press Release
In San Antonio, a federal judge sentenced 35-year-old ringleader Andrew Sanchez (aka “Freight,” “Hakeem”) to 15 years in federal prison for his role in a narcotics distribution operation on San Antonio’s eastside, announced U.S. Attorney John F. Bash and Drug Enforcement Administration (DEA) Special Agent in Charge Will Glaspy, Houston Division.
During the sentencing hearing yesterday, U.S. District Judge Fred Biery also ordered that Sanchez be placed on supervised release for a period of five years after completing his prison term and forfeit $2,961.00 in U.S. Currency that was proceeds from his criminal enterprise.
On July 24, 2019, Sanchez pleaded guilty to one count of conspiracy to possess with intent to distribute one kilogram or more of heroin. By pleading guilty, Sanchez admitted that from May 2018 to March 2019, he was the leader of an organization responsible for the distribution of heroin on the east side of San Antonio. The Sanchez organization operated as a full-scale delivery service for heroin to the street-level user. Street-level users contacted a set phone number (the “order phone”) to order the amount of heroin wanted and arrange for the location where the narcotics were to be delivered. The order phone holder then coordinated with organization members responsible for the delivery of the heroin. Those members then drove to the established location and delivered the heroin to the street-level user. The organization operated daily from approximately 8:00 a.m. until 2:00 a.m., with the organization members working shifts in the various roles.
To date, four defendants (including Sanchez) have been convicted and sentenced to prison terms ranging from five years to 15 years. Two defendants are awaiting sentencing and one is awaiting trial. Rodrigo Roque (aka “Scrappy”), who is charged in the conspiracy count, is scheduled for jury selection on December 16, 2019.
The DEA and the Texas Department of Public Safety investigated this case with assistance from the U.S. Marshals Service, Bexar County Sheriff’s Office, Seguin Police Department, Terrell Hills Police Department and the Bexar County District Attorney’s Office.
The principal mission of the Organized Crime Drug Enforcement Task Force (OCDETF) program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering operations, and those primarily responsible for the nation’s illegal drug supply.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. Roque is presumed innocent until proven guilty in a court of law.
Schertz Man Admits to Pointing Laser at San Antonio Police Helicopter Flying OverheadRead the Press Release
In San Antonio today, 37-year-old Justin John Shorey of Schertz, TX, admitted to aiming a laser pointer at a San Antonio Police Department helicopter flying overhead, announced U.S. Attorney John F. Bash, San Antonio Police Chief William McManus and FBI Special Agent in Charge Christopher Combs.
Appearing before U.S. Magistrate Judge Richard B. Farrer, Shorey pleaded guilty to the charge. He faces up to five years in federal prison. He remains in custody at this time. No sentencing date has been scheduled.
According to the factual basis filed in this case, to which Shorey admitted in court, on February 17, 2019, Shorey knowingly aimed the beam of a laser pointer at an aircraft and the flight path thereof. The aircraft, a San Antonio Police Department helicopter, was assisting in the search of a shooting suspect while orbiting just north of Highway 90 West. When the laser beam made contact with the helicopter, it hit the pilot in the eyes affecting his ability to see and read his gauges. The pilot and his tactical officer onboard began a search for the laser suspect. Shorey admitted to aiming the laser at the aircraft once as it approached his location in the 2100 block of Hays Street in San Antonio and twice as it circled above him.
The pilot managed to land safely at the San Antonio International Airport. The injury to the pilot’s eyes caused by the defendant’s actions resulted in the pilot being unable to fly for a week.
If you have information about a lasing incident, contact the San Antonio FBI at 210-225-6741. If you see someone pointing a laser at an aircraft, call the nearest local law enforcement agency immediately by dialing 911. Tips can also be submitted online at https://tips.fbi.gov.
The San Antonio Police Department and the FBI conducted this investigation. Assistant U.S. Attorneys Mark Roomberg and William R. Harris are prosecuting this case on behalf of the Government.
Project Safe Neighborhoods is Making an Impact in Killeen, Temple and San AntonioRead the Press Release
Project Safe Neighborhoods (PSN), which plays a major role in the Department of Justice’s violent crime reduction strategy, is making a difference in Killeen and San Antonio—two cities in the Western District of Texas where the program is being implemented, announced U.S. Attorney John F. Bash.
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. According to FBI’s 2018 Crime in the United States Report released this week, for the second consecutive year, the estimated number of violent crimes in the nation decreased 3.3 percent from the 2017 number. The violent crime rate fell 3.9 percent when compared with the 2017 rate. The 2018 statistics show the estimated rate of violent crime was 368.9 offenses per 100,000 inhabitants.
“Through DOJ’s Project Safe Neighborhoods program, we have partnered with all levels of law enforcement, local organizations, and members of the community to reduce violent crime and make our neighborhoods safer for everyone,” stated U.S. Attorney Bash. “Those efforts are now starting to pay off, but we have a lot more work to do. It is gratifying to know that our work is saving lives and that we are taking steps toward ensuring that every kid, regardless of zip code, has the opportunity to grow up in a neighborhood free from violence.”
In Killeen, federal authorities are working with local authorities to get violent criminals off the street. Since October 2017, authorities have filed federal firearms/drug charges against more than 150 convicted felons, drug dealers in possession of firearms and other persons prohibited from possessing firearms in the Temple/Killeen areas. These filings demonstrate an increase of more than 300% in federal charges filed over the previous fiscal year for offenses in the same areas. According to the Killeen Police Department*, cases involving: Unlawful Possession by a Felon are down 25%; Prohibited Weapons are down 142%; Deadly Conduct are down 46%; and, Murder/Capital Murder are down 84% over the past two years. (*KPD 2019 stats through 7.31.19)
In the past year, approximately 70 narcotics traffickers were convicted and sentenced to federal prison. In addition to removing drug traffickers from the area, law enforcement officers have been successful in getting drugs and firearms off the streets.
In San Antonio, statistical data reveals the same downward trend. According to the San Antonio Police Department, from 2017 to 2018, cases involving: Murder are down 14% (124-109); Robbery are down 29% (2087-1612); Deadly Conduct are down 25% (2017-1613); and, Rape are down 7% (366-241).
As part of the San Antonio Texas Anti-Gang Center’s (TAG) intervention and prevention program the TAG has deployed the Stopsanantoniogangs.org website to assist the public with reporting gang related activities in the greater San Antonio/Alamo area.
In early August, TAG received an anonymous tip from the StopSanAntonioGangs.org website which led to the arrest of fugitive Texas Mexican Mafia gang member, Robert Oyervides. Oyervides was a known violent Texas Mexican Mafia member suspected of aggravated assault. TAG law enforcement agencies, specifically the Texas Department of Public Safety investigators and San Antonio Police officers along with analysts, developed and followed up on the tip information to locate and arrest Oyervides with the assistance of U.S. Marshal’s Lone Star Fugitive Taskforce. Oyervides was wanted for Aggravated Assault in July 2019.
The website also provides education to the general public regarding the threat of criminal gangs. It also assists parents in detecting gang related indicators in their children’s behavior and activities to assist them in preventing their children’s continued gang involvement. In addition, they provide the public with an opportunity to submit anonymous gang related tips and wanted gang fugitive tips within the San Antonio/Alamo area. This website signifies a partnership between the public and law enforcement by giving the public an opportunity to team-up with, and contribute with police in deterring criminal gangs’ illegal activities.
Project Safe Neighborhoods (PSN) is 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. Learn more about Project Safe Neighborhoods.
Sinaloa Cartel Member Extradited to the United StatesRead the Press Release
Sinaloa Cartel member Luis Arellano-Romero (aka “Bichi,” “Bichy,” “Helio”), age 44, has been extradited from Mexico to face federal racketeering charges in the Western District of Texas. Arellano-Romero had his initial appearance in El Paso today before U.S. Magistrate Judge Anne Berton. Arellano-Romero remains in federal custody.
U.S. Attorney John F. Bash, Special Agent in Charge Kyle W. Williamson of the Drug Enforcement Administration’s (DEA) El Paso Division, Special Agent in Charge Luis Quesda of the FBI’s El Paso Field Office and, Special Agent in Charge Jeffrey C. Boshek, II, of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Dallas Division made the announcement.
In April 2012, Arellano-Romero was charged in the same federal grand jury indictment as Joaquin Guzman Loera, aka “El Chapo,” Ismael Zambada Garcia aka “Mayo,” Jose Antonio Torres Marrufo “aka Jaguar” and 20 other individuals responsible for the operations and management of the Sinaloa Cartel (Cartel). The indictment charged them with violating the Racketeer Influenced and Corrupt Organizations (RICO) Act. According to the indictment, Luis Arellano-Moreno was Torres Marrufo’s personal body guard who participated in numerous kidnappings and murders as part of Torres Marrufo’s assassin squads. Upon conviction, Luis Arellano-Romero faces up to life in federal prison.
The 14-count grand jury indictment, returned on April 11, 2012, charges conspiracy to violate the RICO statute; conspiracy to possess more than five kilograms of cocaine and over 1000 kilograms of marijuana; conspiracy to import more than five kilograms of cocaine and 1000 kilograms of marijuana; conspiracy to commit money laundering; conspiracy to possess firearms in furtherance of drug trafficking crimes; murder in furtherance of a continuing criminal enterprise (CCE) or drug trafficking; engaging in a CCE in furtherance of drug trafficking; conspiracy to kill in a foreign country; kidnapping; and violent crimes in aid of racketeering.
According to the indictment, the purpose of the Sinaloa Cartel is to smuggle large quantities of marijuana and cocaine, as well as other drugs, into the United States for distribution. Laundered proceeds of drug trafficking activities are returned to Cartel members and are used in part to purchase properties related to the daily functioning of the Cartel, including real estate, firearms, ammunition, bullet proof vests, radios, telephones, uniforms and vehicles. In an effort to maintain control of all aspects of their operations, the Cartel and it’s associates, including members of the Gente Nueva (“New People”) and the Artistas Asesinos (“Murder artists”), kidnap, torture and murder those who lose or steal assets belonging to, are disloyal to, or are enemies of the Cartel.
This includes the Juarez Cartel, a competing drug organization who at the time was led by Vicente Carrillo Fuentes, as well as it’s enforcement arm known as La Linea and the Barrio Aztecas. Oftentimes, murders committed by the Cartel involve brutal acts of violence as well the public display of the victim along with banners bearing written warnings to those who would cross the Cartel.
The indictment references two acts of violence allegedly committed by members of the Cartel. First, the indictment alleges that in September 2009, Torres Marrufo, Gabino Salas-Valenciano, Fernando Arellano-Romero (Luis’s brother) and Mario Iglesias-Villegas, under the leadership of Guzman Loera and Zambada Garcia, conspired to kidnap and murder a Horizon City, Texas, resident. Specifically, Torres Marrufo ordered the kidnapping of the victim to answer for the loss of a 670-pound load of marijuana seized by the U.S. Border Patrol at the Sierra Blanca checkpoint on Aug. 5, 2009. After the kidnapping, the victim was taken to Juarez where Torres Marrufo interrogated him and ordered that he be killed. On Sept. 8, 2009, the victim’s mutilated body was discovered in Juarez.
Second, the indictment alleges that on May 7, 2010, Torres Marrufo, Fernando Arellano-Romero and Iglesias-Villegas, under the leadership of Guzman Loera and Zambada Garcia, conspired to kidnap and murder an American citizen and two members of his family. Specifically, Torres Marrufo caused an individual in El Paso to travel to a wedding ceremony in Juarez to confirm the identity of a target. The target was the groom, a U.S. citizen and a resident of Columbus, New Mexico. Under Torres Marrufo’s orders, the groom, his brother and his uncle were all kidnapped during the wedding ceremony and subsequently tortured and murdered. Their bodies were discovered by Juarez police a few days later in the bed of an abandoned pickup truck. Additionally, a fourth person was killed during the kidnapping at the wedding ceremony.
This investigation resulted in the seizure of hundreds of kilograms of cocaine, and thousands of pounds of marijuana in cities throughout the U.S. Law enforcement also took possession of millions of dollars in drug proceeds which were destined to be returned to the Cartel in Mexico. Agents and officers likewise seized hundreds of weapons and thousands of rounds of ammunition intended to be smuggled into Mexico to assist the Cartel’s battle to take control of one of the key drug trafficking corridors used to bring drugs into the U.S.
The DEA, FBI and ATF together with U.S. Immigration and Customs Enforcement’s-Homeland Security Investigations, U.S. Border Patrol, U.S. Customs and Border Protection, U.S. Marshals Service, El Paso Police Department, El Paso Sheriff’s Office and Texas Department of Public Safety investigated the case. The Office of International Affairs of the Department of Justice’s Criminal Division provided significant support in securing and coordinating Arellano-Romero’s arrest and extradition. U.S. Attorney Bash also expresses his appreciation to the U.S Attorney’s Office in New Mexico; Attorney General of Mexico Alejandro Gertz Manero and his attorneys; and, to law enforcement authorities in Mexico for their assistance.
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.
Alleged Barrio Azteca Shooter Extradited from Mexico to U.S. to Face Charges Related to the U.S. Consulate Murders in Juarez, MexicoRead the Press Release
WASHINGTON – An alleged shooter and member of the Barrio Azteca (BA), a transnational border gang allied with the Juarez Cartel, was extradited from Mexico to the United States to face charges related to the March 2010 U.S. Consulate murders in Juarez, Mexico.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney John F. Bash for the Western District of Texas, Special Agent in Charge Luis Quesada of the FBI’s El Paso Field Office and Acting Administrator Uttam Dhillon of the U.S. Drug Enforcement Administration (DEA) made the announcement.
Jose Guadalupe Diaz Diaz, aka “Zorro,” arrived in the United States yesterday and made his initial appearance today before U.S. Magistrate Judge Anne T. Berton in El Paso, Texas. Diaz is charged in a 12-count third superseding indictment unsealed in March 2011. According to court documents and previous trial testimony, Diaz allegedly participated in BA activities, including narcotics trafficking and acts of violence by BA members in Mexico. On March 13, 2010, Diaz allegedly shot and killed U.S. Consulate employee Leslie Ann Enriquez Catton and her husband, Arthur Redelfs.
A total of 35 BA members and associates based in the U.S. and Mexico were charged in the third superseding indictment for allegedly committing various criminal acts, including racketeering, narcotics distribution and importation, extortion, money laundering, obstruction of justice and murder. Of the 35 defendants, 10 Mexican nationals, including Diaz, were charged in connection with the murders of Enriquez Catton and Redelfs, as well as Jorge Alberto Salcido Ceniceros, the husband of a U.S. Consulate employee. If convicted, Diaz faces a maximum penalty of life in prison.
Of the 35 defendants charged, 34 have been apprehended. U.S. and Mexican law enforcement are actively seeking to apprehend the lone fugitive in this case, Luis Mendez.
Twenty-eight of those defendants have pleaded guilty, one was convicted by a jury, one is currently pending trial, one defendant committed suicide while imprisoned during his trial and three others are pending extradition from Mexico.
According to court documents and information presented in court throughout this case, the Barrio Azteca is a violent street and prison gang that began in the late 1980s and expanded into a transnational criminal organization. In the 2000s, the BA formed an alliance in Mexico with “La Linea,” which is part of the Juarez Drug Cartel (also known as the Vincente Carrillo Fuentes Drug Cartel or “VCF”). The purpose of the BA-La Linea alliance was to battle the Chapo Guzman Cartel and its allies for control of the drug trafficking routes through Juarez and Chihuahua. The drug routes through Juarez, known as the Juarez Plaza, are important to drug trafficking organizations because they are a principal illicit drug trafficking conduit into the United States.
The gang has a militaristic command structure and includes captains, lieutenants, sergeants and soldiers – all with the purpose of maintaining power and enriching its members and associates through drug trafficking, money laundering, extortion, intimidation, violence, threats of violence and murder.
Diaz’s extradition is the result of close coordination between U.S. law enforcement and the government of Mexico in the investigation and prosecution of this case. The cooperation and assistance of the government of Mexico was essential to achieving the successful extradition.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Trial Attorney Christina Taylor of the Criminal Division’s Organized Crime and Gang Section, Trial Attorney Jay Alan Bauer of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney John Gibson of the Western District of Texas are prosecuting the case. The U.S. Attorney’s Office for the District of New Mexico and the Criminal Division’s Offices of International Affairs and Enforcement Operations provided significant assistance in this case.
The FBI’s Safe Streets Task Force located at the Texas Anti-Gang Center in El Paso, FBI Albuquerque Field Office (Las Cruces Resident Agency), DEA Juarez and DEA El Paso investigated the case. The Bureau of Alcohol, Tobacco, Firearms and Explosives; Immigration and Customs Enforcement; the U.S. Marshals Service; U.S. Customs and Border Protection; Federal Bureau of Prisons; U.S. Diplomatic Security Service; the Texas Department of Public Safety; the Texas Department of Criminal Justice; El Paso Police Department; El Paso County Sheriff’s Office; El Paso Independent School District Police Department; Texas Alcohol and Beverage Commission; New Mexico State Police; Dona Ana County, N.M., Sheriff’s Office; Las Cruces, N.M., Police Department; Southern New Mexico Correctional Facility and Otero County Prison Facility New Mexico provided special assistance.
Justice Department Reaches Settlement Agreement with Vibra Healthcare and El Paso Rehabilitation Hospital over Allegations of Violating the False Claims ActRead the Press Release
U.S. Attorney John F. Bash of the Western District of Texas announced today that Vibra Healthcare, LLC, Vibra Healthcare II, LLC, Vibra Rehab Holdings, LP, Vibra Rehabilitation Hospital of El Paso, LLC d/b/a Highlands Rehabilitation Hospital, and Vibra IRFM Company, LLC, (collectively referred to as “Vibra”) will pay $6,250,000.00 to settle allegations that they defrauded the U.S. through its Medicare healthcare programs. Vibra Healthcare, based in Pennsylvania, operates freestanding acute medical rehabilitation hospitals and long term acute care hospitals nationwide, including Highlands Rehabilitation Hospital in El Paso, Texas.
On January 21, 2016, Thomas A. Floren, a former employee at Highlands, filed a qui tam action in the U.S. District Court for the Western District of Texas, alleging that Highlands and others submitted false claims to Medicare for services that did not meet the requirements for payment. Medicare requires that inpatient rehabilitation facilities, such as Highlands, provide an intensive level of services to patients, including that the patient be examined by a qualified physician at least three times per week throughout a patient’s stay. Floren alleged that patients at Highlands were not seen three times per week by a qualified physician, and that Vibra billed Medicare for services knowing that it did not meet this requirement.
“I am pleased that the parties reached a fair settlement in this case. If medical providers want reimbursement from Medicare, they need to follow the rules. That is especially true for rules designed to ensure that patients get healthy. We won’t hesitate to hold providers to their legal obligations,” said U.S. Attorney Bash.
The lawsuit, United States ex rel. Thomas A. Floren v. Vibra Rehabilitation Hospital of El Paso, LLC et al., Civil Action SA16CA0058 was filed under the qui tam or whistleblower provisions of the False Claims Act, which permits private parties to sue for false claims against the U.S. and to receive a share of any recovery.
The case was investigated by the FBI. Special Assistant U.S. Attorney Susan Strawn represented the federal government in the civil lawsuit, with the assistance of the Office of the Inspector General of the U.S. Department of Health and Human Services.
The claims asserted against the defendants are allegations only; there has been no determination of liability.
Federal Jury Convicts Former Civilian Employee at Ft. Bliss for Fraud Scheme Involving Military Aircraft Maintenance and PartsRead the Press Release
In El Paso yesterday afternoon, a federal jury convicted a former civilian employee in the U.S. Army at Ft. Bliss for a scheme to defraud the government with respect to military aircraft maintenance and parts, announced U.S. Attorney John F. Bash.
Following a four-day trial, jurors convicted James Hilario Balbin of Corpus Christi, TX, of one count of conspiracy to commit fraud involving aircraft parts and one substantive count of fraud involving aircraft parts. Evidence presented during trial revealed that in November and December of 2017, while assigned to conduct maintenance inspections on an Army Blackhawk helicopter, Balbin signed off an official Army maintenance form verifying that all inspections had taken place and work completed when in truth, he signed the form prior to the completion of the repair work and inspections taking place. The jury also found that Balbin conspired with Robert Edgard Blankenbeker, a mechanic and his co-defendant, to conceal his crime.
Balbin remains on bond pending sentencing before U.S. District Judge Philip R. Martinez. Balbin faces up to 30 years in federal prison and restitution to the government. On July 19, 2019, Blankenbeker pleaded guilty to the conspiracy charge. Blankenbeker remains on bond pending sentencing. He faces up to 15 years in federal prison. No sentencing dates have been scheduled.
The U.S. Army Criminal Investigation Command investigated this case. Assistant U.S. Attorneys Christopher K. Mangels and Carlos Hermosillo are prosecuting this case on behalf of the government.
Cibolo Businessman Faces Federal Charges Related to a Scheme to Defraud High School StudentsRead the Press Release
George Alberto Barragan, 45 of Cibolo, TX, faces federal charges in connection with an alleged scheme to steal money from high school students who paid for group travel opportunities to celebrate their graduations, announced U.S. Attorney John F. Bash and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
A federal grand jury indictment unsealed today charges Barragan with three counts of mail fraud, four counts of wire fraud and one count of aggravated identity theft.
According to the indictment, Barragan owned and operated several travel agencies, including EB Worldwide, Exhibit Tours and Senior Grad Trips. He was the sole individual in charge of negotiating and contracting with customers, as well as booking and arranging travel accommodations for large groups. Victim groups would pay Barragan by check or online payment portal either in full up front, or provide an initial deposit with a deadline by which payment needed to be completed. Once in possession of victims’s funds, Barragan would make reservations and provide confirmations and itineraries to victims purporting to show that desired travel arrangements had been arranged.
Prior to travel, Barragan would cancel reservations and thus, receive a refund of the victims’s monies into an account he controlled. Barragan never notified his victims of the cancellations. In fact, he kept communicating with his victims after he cancelled their trip, informing them that their travel was still taking place. In at least two instances, large groups of students arrived at the designated time and location to begin their trip, only to find out that their trip had been cancelled. The indictment also specifically alleges that in April 2018, Barragan illegally used a credit card number and personal information provided by a customer to make a $6,000 payment for a set of hotel rooms in San Diego, CA, for an unrelated client.
According to the indictment, Barragan perpetrated his scheme on no less than six different high school student groups between May 2015 and June 2018, resulting in an approximate total loss of $160,000.
Following his initial appearance today, Barragan was released on bond. Upon conviction, Barragan faces up to a mandatory two years in federal prison for aggravated identity theft and up to 20 years in federal prison on each of the remaining mail and wire fraud charges.
The FBI investigated this case. Assistant U.S. Attorney Justin Chung is prosecuting this case on behalf of the government.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendant is innocent until proven guilty in a court of law.
Compound Ingredient Supplier Fagron Holding USA LLC to Pay $22.05 Million to Resolve Allegations of False and Inflated Average Wholesale Prices for Ingredients Used in Compounded PrescriptionsRead the Press Release
WASHINGTON – The Department of Justice announced today that Fagron Holding USA LLC (Fagron) has agreed to pay $22.05 million to resolve allegations concerning the establishment of false and inflated Average Wholesale Prices (AWPs) by its wholly owned subsidiary Freedom Pharmaceuticals Inc. (Freedom) for active pharmaceutical ingredients used in compound prescriptions. Freedom’s pricing scheme caused pharmacies that purchased Freedom’s compound ingredients to submit false prescription claims to the Defense Health Agency, which administers the TRICARE Program for the Department of Defense and the Department of Labor’s Office of Workers Compensation Programs (federal healthcare programs).
“We will not allow the systematic abuse of federal healthcare programs through pricing schemes designed to enrich a few at the expense of federal taxpayers,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “Our commitment to protect these programs extends not only to the pursuit of those that submit fraudulent claims but also those who cause others to submit such claims.”
Compounding pharmacies purchase ingredients or chemicals from ingredient suppliers such as Freedom to prepare and fill compound prescriptions for patients who require a specially made prescription that is not generally available in the marketplace. Freedom knew that compound prescription reimbursement under these federal programs was based in part on the AWPs it reported to various price listing agencies for its ingredients. Freedom knowingly inflated the AWPs for its ingredients in order to increase the reimbursement that its pharmacy customers received from federal healthcare programs for using Freedom’s ingredients. For example, Freedom established an AWP for the ingredient Fluticasone Propionate at $3,500 per gram even though it typically sold the Fluticasone Propionate for approximately $160 per gram.
Freedom promoted its high AWPs and the resulting profit potential from the reimbursement of compound prescriptions as an inducement to pharmacies to purchase its ingredients. Freedom’s fraudulent pricing scheme for its ingredients enabled its pharmacy customers to bill federal healthcare programs thousands of dollars per prescription for some compound formulations.
“We have no tolerance for the abuse of federal healthcare programs, especially where it impacts the healthcare program for our veterans and their families,” said U.S. Attorney John Bash of the Western District of Texas.
“Deception and avarice have no place in our healthcare system,” said U.S. Attorney Maria Chapa Lopez of the Middle District of Florida. “Taxpayers expect that the programs they fund be administered according to the law and utilized for the purposes that they were intended. We will continue to guard against abuse of healthcare programs to ensure that patients receive the care they deserve.”
The settlement also resolves allegations that Fagron’s wholly owned pharmacy subsidiary, Pharmacy Services Inc. (PSI) and its pharmacy affiliates, submitted fraudulent compound prescription claims to federal healthcare programs, used sham insurance programs to manipulate pricing, paid kickbacks to physicians for bogus consulting agreements, and illegally waived copays. It also addresses allegations against another Fagron subsidiary, B&B Pharmaceuticals Inc. (B&B), for setting an inflated AWP for Gabapentin.
The settlement resolves allegations contained in two separate actions filed against Freedom, PSI, and B&B under the whistleblower or qui tam provisions of the False Claims Act. Under the False Claims Act, private parties may sue on behalf of the government for false claims for government funds and to receive a share of any recovery. The whistleblowers will receive a combined total of $3,749,000 plus accrued interest from the proceeds of the settlement. The two lawsuits are captioned United States ex rel. Hueseman v. PSI et al., (WDTX) and United States ex rel. Sten v. Midwest Compounders, et al., (NDIA).
The case was handled by the Civil Division, Commercial Litigation Branch, the U.S. Attorney’s Offices for the Western District of Texas and the Middle District of Florida, with investigative support from the Defense Criminal Investigative Service, U.S. Postal Service, Department of Labor, and the U.S. Drug Enforcement Agency.
Federal Judge Convicts Owner of Dog Training and Handler School in San Antonio for Scheme to Defraud the Federal GovernmentRead the Press Release
In San Antonio today, a federal judge convicted 47-year-old Bradley Lane Croft, owner of Universal K-9, Inc., of scheming to defraud the federal government with respect to the use of GI Bill benefits to train service canines and their handlers, announced U.S. Attorney John F. Bash; FBI Special Agent in Charge Christopher Combs, San Antonio Division; Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge Richard D. Goss, Houston Field Office; and, U.S. Department of Veterans Affairs Office of Inspector General (VA-OIG) Criminal Investigations Division Special Agent in Charge James Ross, South Central Field Office.
Following a ten-day bench trial, Senior U.S. District Judge David A. Ezra rendered his verdict this afternoon and convicted Croft of 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 provided at trial revealed that beginning in 2013, Croft provided false information in applications to the Texas Veterans Commission, including instructors’ names, certifications and training documents indicating that certain individuals would be instructors at the school, 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 course that cost from $6,500.00 for the K-9 Handler dual-purpose detection program to $12,000.00 for the K-9 trainer/instructor program. Since 2016, Universal K-9 filed approximately 185 claims relating to the education of approximately 132 veterans and totaling over $1,260,000.00. 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.
“The FBI would like to thank the U.S. Attorney's Office, and our partner agencies IRS-CI and VA-OIG for their tireless efforts on this very important case. We would also like to recognize the outstanding contributions of the lead investigator for the FBI, who is a task force officer from the Texas Department of Public Safety and assigned to San Antonio FBI's Public Corruption and White Collar Crime Task Force. Our task forces are one of the FBI's greatest strengths; they leverage the resources and expertise of our partner agencies, enhancing our ability to protect our community from both criminal and national security threats,” stated FBI Special Agent in Charge Combs.
“Today’s guilty verdict was reached under the leadership of the U.S. Attorney’s Office, and as a result of the extensive work of special agents of the VA Office of Inspector General, the Internal Revenue Service-Criminal Investigation, and the FBI,” stated VA-OIG Special Agent in Charge Ross. “These charges send a clear signal that any institution entrusted with the education of veterans will be held accountable for defrauding the GI Bill program.”
The government is also seeking the criminal forfeiture of alleged proceeds derived from the defendant’s illegal scheme including a 2017 American Eagle Motorhome, two late model pickup trucks, two jet skis, one trailer, approximately $138,000 in U.S. Currency and the real property located in the 15000 block of Tradesman in San Antonio.
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, who was remanded into the custody of the U.S. Marshals Service following today’s verdict, faces up to 20 years in federal prison for wire fraud, up to 20 years in federal prison for money laundering and up to two years in federal prison for aggravated identity theft. Sentencing has yet to be scheduled.
The FBI, IRS-CI, and the VA-OIG investigated this case. Assistant U.S. Attorneys Gregory J. Surovic and Fidel Esparza, III, are prosecuting this case on behalf of the government.
Waco Man Sentenced to Life in Federal Prison for Armed Bank Robberies in Temple and HewittRead the Press Release
In Waco today, a federal judge sentenced 25-year-old Dallas Scott Bohanan to life in federal prison for committing two armed bank robberies, one of which resulted in Bohanan firing his weapon at a police officer, announced U.S. Attorney John F. Bash and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
On May 14, 2019, Bohanan pleaded guilty to three counts of discharging a firearm during a crime of violence and two counts of bank robbery.
U.S. District Judge Alan Albright sentenced Bohanan to life imprisonment on each of the firearms charges to run concurrent with each other. Judge Albright also sentenced Bohanan to 97 months imprisonment on each of the bank robbery charges to run concurrent with each other, but consecutive to the life sentence previously mentioned.
In addition to the prison term, Judge Albright ordered that Bohanan pay a $250,000 fine and $12,130.46 in restitution.
“We will not tolerate attacks on police officers. I am proud of the work our prosecutors did to put this offender behind bars for life,” stated U.S. Attorney Bash.
By pleading guilty, Bohanan admitted to robbing the Temple Santa Fe Community Credit Union located on West Avenue A in Temple on November 23, 2016, and stealing approximately $4,550 cash. He also admitted to robbing the Pointwest Bank located on North Hewitt Drive in Hewitt on February 5, 2019, and stealing approximately $3,500 cash. Bohanan further admitted to discharging firearms during those two bank robberies as well as during a third bank robbery on November 15, 2016, at the Chase Bank on North New Road in Waco.
According to court records, as he exited the Pointwest Bank on February 5, 2019, Bohanan fired at least two rounds in the direction of a responding law enforcement officer. Bohanan left the scene in what authorities believe was the same vehicle used in the previous armed bank robberies. A vehicle chase ensued from Hewitt to Waco. During the pursuit, Bohanan allegedly fired two shotgun rounds at a chasing police vehicle. One of those rounds struck an officer in the arm. Bohanan ultimately lost control of his vehicle and crashed. He managed to leave the crash site on foot, but was later apprehended by Waco Police officers.
“The defendant's actions demonstrated a callous disregard for human life. The life sentence handed down today will prevent him from harming and victimizing our community,” said FBI Special Agent in Charge Combs.
The FBI together with the Hewitt, Temple and Waco Police Departments investigated this case. Assistant U.S. Attorney Greg Gloff prosecuted this case on behalf of the government.
This case is 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. Attorney General Jeff Sessions 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.
Odessa Man Sentenced to Federal Prison for Stealing Firearms from a Pawn Shop in OdessaRead the Press Release
In Midland today, U.S. District Judge David Counts sentenced 28-year-old Christopher Chase Mojica to 57 months in federal prison followed by three years of supervised release for stealing firearms from a pawn shop in Odessa and for being a convicted felon in possession of a firearm, stated U.S. Attorney John F. Bash; Special Agent in Charge Jeffrey C. Boshek, II, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Dallas Field Division; and, Odessa Police Chief Michael Gerke.
On July 23, 2019, Mojica pleaded guilty to one count of possession of a firearm by a prohibited person and one count of theft of a firearm from a Federal Firearms Licensee (FFL). By pleading guilty, Mojica admitted that on April 29, 2019, he walked inside Cash America in Odessa, fired a flare gun at employees, smashed a display case then walked out with five firearms. One of the stolen firearms was a Romarm/Cugir Draco 7.62x39mm caliber semi-automatic pistol manufactured outside the State of Texas. According to court records, Mojica’s criminal history reveals a 2019 conviction in Ector County for burglary and a 2017 conviction in Ector County for possession of a controlled substance.
“Mr. Mojica victimized a Federal Firearms Licensee during business hours, placing employees and patrons at risk,” stated ATF Special Agent in Charge Boshek. “Swift action by the Odessa Police Department prevented stolen firearms from entering the illegal firearms trade, and strong law enforcement partnerships resulted in the successful federal prosecution.”
ATF and the Odessa Police Department conducted this investigation. Assistant U.S. Attorney Glenn Harwood prosecuted this case on behalf of the government.
This case is 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. Attorney General Jeff Sessions 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.
Nevada Man Pleads Guilty to Role in Million Dollar Scheme Targeting Thousands of U.S. Servicemembers and VeteransRead the Press Release
Fredrick Brown, 38, of Las Vegas, Nevada, a former civilian medical records administrator for the U.S. Army at the 65th Medical Brigade, Yongsan Garrison, South Korea, admitted yesterday to his role in an identity-theft and fraud scheme that victimized thousands of U.S. servicemembers and veterans.
Appearing before U.S. Magistrate Judge Richard Farrer, Brown pleaded guilty to one count of conspiracy to commit wire fraud and one count of conspiracy to launder monetary instruments. By pleading guilty, Brown admitted that from July 2014 to September 2015, he stole personal identifying information (PII) of thousands of military members, including names, social security numbers, DOD ID numbers, dates of birth, and contact information. Brown admitted to capturing the PII by taking digital photographs of his computer screen while he was logged into the Armed Forces Health Longitudinal Technology Application. Brown further admitted that he subsequently provided that stolen data to co-defendant, Robert Wayne Boling Jr., so that Boling and others could exploit the information in various ways to access Department of Defense and Veterans Affairs benefits sites and steal millions of dollars.
Brown faces up to 20 years in federal prison for each conspiracy charge. He remains in federal custody awaiting sentencing scheduled for 10:30am on Feb. 6, 2020, before Chief U.S. District Judge Orlando Garcia in San Antonio.
As asserted in the indictment, Boling (U.S. citizen), together with his Philippines-based co-defendants Allan Albert Kerr (Australian citizen) and Jongmin Seok (South Korean citizen), specifically used the stolen information to compromise a Department of Defense portal designed to enable military members to access benefits information online. Once through the portal, the defendants are alleged to have accessed benefits information. Access to these detailed records enabled the defendants to steal or attempt to steal millions of dollars from military members’ bank accounts. The defendants also stole veterans’ benefits payments. After the defendants had compromised military members’ bank accounts and veterans’ benefits payments, Boling allegedly worked with co-defendant Trorice Crawford to recruit individuals who would accept the deposit of stolen funds into their bank accounts and then send the funds through international wire remittance services to the defendants and others. Evidence of the defendants’ scheme was detected earlier this year, advancing the investigation that led to the indictment.
The Departments of Defense and Veterans Affairs are coordinating with the Department of Justice to notify and provide resources to the thousands of identified victims. Announcements also will follow regarding steps taken to secure military members’ information and benefits from theft and fraud.
Boling, Crawford, Kerr and Seok are charged with multiple counts of conspiracy, wire fraud, and aggravated identity theft. Crawford remains in federal custody pending resolution of this litigation. Boling, Kerr and Seok are in custody in the Philippines awaiting transfer to the Western District of Texas.
It is important to note that an indictment merely alleges that crimes have been committed. All defendants are presumed innocent until proven guilty beyond a reasonable doubt.
The United States is represented by Trial Attorneys Ehren Reynolds and Yolanda McCray Jones of the Department of Justice’s Consumer Protection Branch and Assistant U.S. Attorney Joseph Blackwell of the U.S. Attorney’s Office for the Western District of Texas. The matter was investigated by agents of the Defense Criminal Investigative Service, and counsel Matthew Freund, along with substantial investigative support from the U.S. Postal Inspection Service, the U.S. Army Criminal Investigation Command, and the Veterans Benefits Administration’s Benefits Protection and Remediation Division. The U.S. Department of State’s Diplomatic Security Service, Philippine law enforcement partners, and the U.S. Attorneys’ Offices for the District of Nevada, the Southern District of California, and the Eastern District of Virginia also provided assistance. Resources from the Department of Justice’s Servicemembers and Veterans Initiative and its Transnational Elder Fraud Strike Force aided in the matter’s investigation and prosecution.
Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. In particular, this past March the Department announced the largest elder fraud enforcement action in American history, charging more than 260 defendants in a nationwide elder fraud sweep. The Department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act. More information about the Department of Justice’s Elder Fraud Initiative is available at www.justice.gov/elderjustice.
Additional information about the Consumer Protection Branch and its enforcement efforts can be found at www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Western District of Texas, visit its website at https://www.justice.gov/usao-wdtx. Information about the Department of Justice's Servicemember and Veterans Initiative is available at https://www.justice.gov/servicemembers.
Las Vegas, Nevada Man Pleads Guilty to Role in Million Dollar Scheme Targeting Thousands of U.S. Servicemembers and VeteransRead the Press Release
In San Antonio, 38-year-old Fredrick Brown, a former civilian medical records administrator for the U.S. Army at the 65th Medical Brigade, Yongsan Garrison, South Korea, admitted his role in an identity-theft and fraud scheme that victimized thousands of U.S. servicemembers and veterans, announced U.S. Attorney John F. Bash, Deputy Assistant Attorney General David Morrell, and Director Gustav Eyler of the Department of Justice’s Consumer Protection Branch.
Appearing before U.S. Magistrate Judge Richard Farrer yesterday, Brown pleaded guilty to one count of conspiracy to commit wire fraud and one count of conspiracy to launder monetary instruments. By pleading guilty, Brown admitted that from July 2014 to September 2015, he stole personal identifying information (PII) of thousands of military members, including names, social security numbers, DOD ID numbers, dates of birth, and contact information. Brown admitted to capturing the PII by taking digital photographs of his computer screen while he was logged into the Armed Forces Health Longitudinal Technology Application. Brown further admitted that he subsequently provided that stolen data to co-defendant Robert Wayne Boling, Jr. so that Boling and others could exploit the information in various ways to access Department of Defense and Veterans Affairs benefits sites and steal millions of dollars.
Brown faces up to 20 years in federal prison for each conspiracy charge. He remains in federal custody awaiting sentencing scheduled for 10:30am on February 6, 2020, before Chief U.S. District Judge Orlando Garcia in San Antonio.
As asserted in the indictment, Boling (U.S. citizen), together with his Philippines-based co-defendants Allan Albert Kerr (Australian citizen) and Jongmin Seok (South Korean citizen), specifically used the stolen information to compromise a Department of Defense portal designed to enable military members to access benefits information online. Once through the portal, the defendants are alleged to have accessed benefits information. Access to these detailed records enabled the defendants to steal or attempt to steal millions of dollars from military members’ bank accounts. The defendants also stole veterans’ benefits payments. After the defendants had compromised military members’ bank accounts and veterans’ benefits payments, Boling allegedly worked with co-defendant Trorice Crawford to recruit individuals who would accept the deposit of stolen funds into their bank accounts and then send the funds through international wire remittance services to the defendants and others. Evidence of the defendants’ scheme was detected earlier this year, advancing the investigation that led to the indictment.
The Departments of Defense and Veterans Affairs are coordinating with the Department of Justice to notify and provide resources to the thousands of identified victims. Announcements also will follow regarding steps taken to secure military members’ information and benefits from theft and fraud.
Boling, Crawford, Kerr and Seok are charged with multiple counts of conspiracy, wire fraud, and aggravated identity theft. Crawford remains in federal custody pending resolution of this litigation. Boling, Kerr and Seok are in custody in the Philippines awaiting transfer to the Western District of Texas.
It is important to note that an indictment merely alleges that crimes have been committed. All defendants are presumed innocent until proven guilty beyond a reasonable doubt.
The United States is represented by Trial Attorneys Ehren Reynolds and Yolanda McCray Jones of the Department of Justice’s Consumer Protection Branch and Assistant U.S. Attorney Joseph Blackwell of the U.S. Attorney’s Office for the Western District of Texas. The matter was investigated by agents of the Defense Criminal Investigative Service, and counsel Matthew Freund, along with substantial investigative support from the U.S. Postal Inspection Service, the U.S. Army Criminal Investigation Command, and the Veterans Benefits Administration’s Benefits Protection and Remediation Division. The U.S. Department of State’s Diplomatic Security Service, Philippine law enforcement partners, and the U.S. Attorneys’ Offices for the District of Nevada, the Southern District of California, and the Eastern District of Virginia also provided assistance. Resources from the Department of Justice’s Servicemembers and Veterans Initiative and its Transnational Elder Fraud Strike Force aided in the matter’s investigation and prosecution.
Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. In particular, this past March, the Department announced the largest elder fraud enforcement action in American history, charging more than 260 defendants in a nationwide elder fraud sweep. The Department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act.
Additional information about the Consumer Protection Branch and its enforcement efforts can be found at www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Western District of Texas, visit its website at https://www.justice.gov/usao-wdtx. Information about the Department of Justice’s Elder Fraud Initiative is available at www.justice.gov/elderjustice; information on the Servicemember and Veterans Initiative is at https://www.justice.gov/servicemembers.
Jordanian National Sentenced for Conspiracy to Bring Aliens into the United StatesRead the Press Release
WASHINGTON – A Jordanian National was sentenced to 36 months in prison for his role in a conspiracy to bring aliens to the United States and actually bringing Yemeni aliens through Mexico to the United States.
According to the plea agreement, during the second half of 2017, Moayad Heider Mohammad Aldairi, 31, conspired with others to smuggle at least six Yemeni nationals across the Texas border and into the United States in exchange for a fee. Aldairi admitted his role in transporting the aliens from Monterrey, Mexico to Piedras Negras, where he directed them to cross the Rio Grande River into the United States. Aldairi provided construction hard hats and reflective vests to some of the aliens in an effort to enable them to blend in after crossing.
“Aldairi endangered our national security by smuggling unvetted aliens across our border into the United States,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “The Department of Justice and our law enforcement partners will steadfastly pursue investigations and prosecutions to disrupt smugglers like Aldairi and end the risk they pose to our safety.”
“The district court imposed a just sentence today. This case vividly illustrates how border security is a key component of national security,” said U.S. Attorney John Bash of the Western District of Texas. “We simply must know the identities of every individual crossing our southern border, particularly those who are nationals of countries where terrorist organizations operate freely.”
“This sentence serves as a sobering reminder about the serious consequences awaiting those involved in human smuggling,” said Special Agent in Charge Shane M. Folden of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) San Antonio. “This investigation is a great example of how HSI uses its global resources, foreign and interagency partnerships to bring international criminals to justice in the United States. Targeting the leaders of criminal organizations who smuggle aliens from certain countries of interest will always be a priority of HSI in protecting the homeland.”
This case was investigated by HSI Eagle Pass, with assistance from HSI New York, HSI Monterrey, HSI Jordan, the U.S. Embassy of Jordan, U.S. Customs and Border Protection, U.S. Border Patrol and FBI San Antonio. The investigation was conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI. The ECT program focuses on human smuggling networks that may present particular national security or public safety risks or present grave humanitarian concerns. ECT has dedicated investigative, intelligence and prosecutorial resources. ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.
This case was prosecuted by Trial Attorneys James Hepburn and Erin Cox of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Matthew Watters of the Western District of Texas.
Jordanian National Sentenced for Conspiracy to Bring Aliens into the United StatesRead the Press Release
A Jordanian National was sentenced to 36 months in prison for his role in a conspiracy to bring aliens to the United States and actually bringing Yemeni aliens through Mexico to the United States.
According to the plea agreement, during the second half of 2017, Moayad Heider Mohammad Aldairi, 31, conspired with others to smuggle at least six Yemeni nationals across the Texas border and into the United States in exchange for a fee. Aldairi admitted his role in transporting the aliens from Monterrey, Mexico to Piedras Negras, where he directed them to cross the Rio Grande River into the United States. Aldairi provided construction hard hats and reflective vests to some of the aliens in an effort to enable them to blend in after crossing.
“Aldairi endangered our national security by smuggling unvetted aliens across our border into the United States,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “The Department of Justice and our law enforcement partners will steadfastly pursue investigations and prosecutions to disrupt smugglers like Aldairi and end the risk they pose to our safety.”
“The district court imposed a just sentence today. This case vividly illustrates how border security is a key component of national security,” said U.S. Attorney John Bash of the Western District of Texas. “We simply must know the identities of every individual crossing our southern border, particularly those who are nationals of countries where terrorist organizations operate freely.”
“This sentence serves as a sobering reminder about the serious consequences awaiting those involved in human smuggling,” said Special Agent in Charge Shane M. Folden of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) San Antonio. “This investigation is a great example of how HSI uses its global resources, foreign and interagency partnerships to bring international criminals to justice in the United States. Targeting the leaders of criminal organizations who smuggle aliens from certain countries of interest will always be a priority of HSI in protecting the homeland.”
This case was investigated by HSI Eagle Pass, with assistance from HSI New York, HSI Monterrey, HSI Jordan, the U.S. Embassy of Jordan, U.S. Customs and Border Protection, U.S. Border Patrol and FBI San Antonio. The investigation was conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI. The ECT program focuses on human smuggling networks that may present particular national security or public safety risks or present grave humanitarian concerns. ECT has dedicated investigative, intelligence and prosecutorial resources. ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.
This case was prosecuted by Trial Attorneys James Hepburn and Erin Cox of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Matthew Watters of the Western District of Texas.
Federal Judge Denies Bond to San Antonio University Student Charged with Enticing Minors into Performing Sexually Explicit ConductRead the Press Release
In San Antonio today, a federal magistrate ordered that a 21-year-old local university student be detained without bond pending trial for allegedly enticing minors into engaging in sexually explicit conduct, announced U.S. Attorney John F. Bash, FBI Special Agent in Charge Christopher Combs and Texas Attorney General Ken Paxton.
During a detention hearing this morning, U.S. Magistrate Judge Richard Farrer ruled that Felipe Jesus Duron of Atascosa, TX, poses a threat to the community and should remain in federal custody while litigation is pending. On October 15, 2019, federal and state authorities arrested Duron based on a federal criminal complaint charging him with enticement of a minor and extortion as well as production, receipt and possession of child pornography.
According to the criminal complaint unsealed today as well as courtroom testimony, since September 2018, Duron has used Internet accessible devices to entice a minor female into sending him nude photographs. Duron then used those photographs to extort the minor, claiming he would release the sexually explicit photographs to her family and friends if she did not provide additional images of sexual activity, including requiring her to enter real time video chat rooms where she was expected to perform sexual acts for adult males.
Upon conviction, the defendant faces up to life in federal prison and a maximum $250,000 fine.
During the hearing, testimony confirmed the presence of additional child victims, male and female. To that note, if you have information about this defendant or his scheme, you are asked to contact the Office of the Attorney General at (512) 475-4565 or the San Antonio FBI at 210-225-6741. Tips can also be submitted online at https://tips.fbi.gov.
The San Antonio FBI’s Crimes Against Children Task Force and the Texas Attorney General’s Office are conducting this investigation. This case marks the first arrest by a state grant-funded investigation position in the Texas Attorney General’s Office that focuses on sexual coercion.
Assistant U.S. Attorney Bettina Richardson is prosecuting this case on behalf of the government.
It is important to note that 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.
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.
Federal Grand Jury in El Paso Indicts Alleged Law Enforcement ImposterRead the Press Release
In El Paso this morning, federal and state authorities arrested 27–year-old Jose Alejandro Vaquera for allegedly impersonating a federal agent, stated U.S. Attorney John F. Bash; FBI Acting Special Agent in Charge David Eisenreich, El Paso Division; U.S. Immigration and Customs Enforcement (ICE) Office of Professional Responsibility (OPR) Special Agent in Charge Charles Anderson and El Paso County Sheriff Richard Wiles.
A federal grand jury indictment unsealed today charges the El Paso resident with one count of impersonator making arrest or search. According to the indictment, on July 8, 2018, Vaquera knowingly pretended to be an ICE agent engaged in detaining and arresting a person.
Vaquera is expected to make his initial appearance at 2:00PM tomorrow afternoon before U.S. Magistrate Judge Miguel Torres in El Paso. Upon conviction, Vaquera faces up to three years in federal prison and a maximum $250,000 fine.
The FBI, ICE-OPR and the El Paso County Sheriff’s Office conducted this investigation. Assistant U.S. Attorney Patricia Aguayo is prosecuting this case on behalf of the government.
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.
Federal Grand Jury in Del Rio Indicts Mother and Daughter in Fraudulent Family Unit CaseRead the Press Release
In Del Rio, a federal grand jury indicted a mother and daughter in a scheme to illegally bring a child, to which neither one was related, into the country, stated U.S. Attorney John F. Bash; Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden, San Antonio Division; U.S. Border Patrol Del Rio Sector Chief Raul L. Ortiz; and, Texas Department of Public Safety Director Steven McCraw.
“Protecting innocent children must be the number one priority of our border security system. This office stands ready to prosecute anyone who commits a federal offense that harms a child,” said U.S. Attorney Bash.
The indictment, returned Wednesday afternoon, charges 42–year-old Aida Martinez of Eagle Pass, TX, and 20-year-old Aida Rodriguez, a U.S. citizen residing in Piedras Negras, Coahuila, Mexico, with one count of conspiracy to bring an alien into the U.S., one substantive count of bringing an alien into the U.S., and one count of making a false statement to a federal agent.
According to court records, on September 23, 2019, the defendants brought an undocumented female, approximately two years old, into the U.S. through the Eagle Pass Port of Entry while fraudulently using Rodriguez’s actual daughter’s birth certificate. Later that day, federal and state authorities arrested the defendants and recovered the unknown child as they were travelling northbound on Highway 57 near Batesville, TX. The defendants initially provided conflicting statements to investigators, but later admitted their intent was to take the child to unknown individuals in San Antonio, collect payment for the child, then return the money to co-conspirators in Piedras Negras.
“HSI’s message is clear – our priority is to protect the children,” said HSI Special Agent in Charge Folden. “HSI will continue to partner with the Border Patrol to identify and dismantle the criminal organizations using fraud to smuggle children.”
“Of all the people that smugglers exploit, children are the most vulnerable,” said Del Rio Sector Chief Patrol Agent Raul L. Ortiz. “Thanks to the cooperative efforts between HSI and Border Patrol, this child was removed from a dangerous situation and properly cared for.”
Martinez and Rodriguez have remained in federal custody since their arrest on September 23, 2019. The child has been placed in the care of the Department of Health and Human Services.
Upon conviction, the defendants face up to ten years in federal prison on the conspiracy charge, between three and ten years in federal prison on the substantive alien smuggling charge, and up to five years in federal prison for the false statement charge,
HSI agents, with assistance from the Texas Department of Public Safety and the U.S. Border Patrol Del Rio Sector, are conducting this investigation. Assistant U.S. Attorney James Ward is prosecuting this case on behalf of the government.
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.
Federal Grand Jury Adds Two New Charges of Distribution of Controlled Substance Resulting in Death Against Carrizo Springs DoctorRead the Press Release
In Del Rio, a federal grand jury added two new charges of distribution of a controlled substance resulting in death to an existing 20-count indictment returned in May against Dr. Alfonso Luevano, announced U.S. Attorney John F. Bash; Drug Enforcement Administration (DEA) Special Agent in Charge Will Glaspy, Houston Division; and, Texas Attorney General Ken Paxton.
The two new charges filed this week allege that Dr. Luevano, a Carrizo Springs doctor with multiple offices throughout the Southwest Texas border area, distributed Hydrocodone to two patients outside the usual course of medical practice and not for a legitimate medical purpose. One of the patients died as a result on April 28, 2017. The other patient died as a result on January 12, 2018.
Dr. Luevano, age 50, now faces one count of conspiracy to distribute a controlled substance, two substantive counts of distribution of a controlled substance resulting in death, ten substantive counts of distribution of a controlled substance, one count of conspiracy to commit Health Care Fraud, five substantive counts of Health Care Fraud, and three counts of aggravated identity theft. Ofelia Martinez, a 51-year-old employee of Dr. Luevano and resident of Carrizo Springs, is also charged in both conspiracy counts, all five Health Care Fraud counts, and all three aggravated identity theft counts.
The superseding indictment alleges that Dr. Luevano regularly provided prescriptions for scheduled controlled substances – including Hydrocodone, Oxycodone, and fentanyl – to patients outside the bounds of accepted medical practice and for no legitimate medical purpose. Dr. Luevano is alleged to have provided these prescriptions after short or perfunctory office visits, and to have issued them without performing the examination necessary to justify the prescription of an opioid pain medication.
The superseding indictment also alleges that Dr. Luevano allowed and instructed nurse practitioners and physician assistants in his employ to provide Schedule II controlled substance prescriptions by pre-signing triplicate prescription forms and leaving them at his various offices to be filled out by his staff. Ms. Martinez is alleged to have assisted in this practice by transporting the pre-signed prescriptions to the offices and instructing the staff on how to fill them out.
Dr. Luevano is also alleged to have committed Health Care Fraud by billing Texas Medicaid for the illegal office visits performed by his medical staff, and by listing himself as the providing practitioner for appointments where he never saw the patient whatsoever. It is also alleged that he defrauded Medicaid on multiple instances by misstating the length of time spent with a patient, as well as the nature of the patient’s diagnosis. Ms. Martinez is alleged to have personally entered and submitted the fraudulent bills for the entire practice, and instructed medical staff to close medical records files in a certain manner so as to conceal their involvement in an appointment.
Both defendants were arrested in May 2019 and remain on $50,000 unsecured bonds pending trial.
Upon conviction, both defendants face up to 20 years in federal prison on the counts related to the distribution of controlled substances and aggravated identity theft, as well as up to ten years in federal prison on the Health Care Fraud counts. Dr. Luevano also faces no less than 20 years in federal prison upon conviction of distribution of a controlled substance resulting in death.
This indictment resulted from a continuing joint investigation by the DEA Prescription Drug Diversion Task Force, DEA Del Rio, and the Texas Attorney General Medicaid Fraud Control Unit. Assistant U.S. Attorneys Justin Chung and Joshua Banister are prosecuting this case on behalf of the Government.
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.
Former U.S. Air Force Staff Sergeant Sentenced to 40 Years in Federal Prison for Receipt and Distribution of Child PornographyRead the Press Release
This morning, a federal judge sentenced a former U.S. Air Force Staff Sergeant assigned to Lackland Air Force Base to 40 years in federal prison for receipt and distribution of child pornography, announced U.S. Attorney John F. Bash, U.S. Air Force Office of Special Investigations (AFOSI) Special Agent/Lt. Col. Jeffrey Hall, Commander of the 11th Field Investigations Squadron, Joint Base San Antonio, and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
In addition to the prison term, Chief U.S. District Judge Orlando Garcia ordered that 34-year-old Rowell Flora of San Antonio, TX, be placed on supervised release for a period of 20 years after completing his prison term. Judge Garcia also ordered Flora to pay $20,000 restitution and a $10,000 special assessment under the Justice for Victims of Trafficking Act.
“This case is yet another example of a child predator put behind bars for decades. I’m proud of the work of our office and our law-enforcement partners,” stated U.S. Attorney Bash.
On February 1, 2018, Flora pleaded guilty to one count of receipt of child pornography and one count of distribution of child pornography. According to court records, federal authorities executed a search warrant at the defendant’s residence on August 2, 2017, and seized numerous electronic devices, including the defendant’s cell phone, desktop computer, laptop computer and several external hard drives. A forensics examination of the seized materials revealed the presence of child pornography. By pleading guilty, Flora admitted to using his phone and computer equipment to receive and distribute multiple images and videos depicting child pornography, including files created and sent to him in June 2017 by a female with whom he was involved in a romantic relationship, 21-year-old Jaelene Roxana Fenior. Flora persuaded Fenior to sexually exploit a minor child for Flora’s own self-gratification.
Fenior, who has admitted to generating images and videos of child pornography and transmitting them to Flora, was sentenced on June 20, 2018, to time served (approx. 10 months) and 15 years of supervised release.
Flora has remained in federal custody since his arrest on August 2, 2017.
“This case was a perfect example of the joint capabilities of AFOSI and FBI. We are very proud of the special agents from both agencies that worked tirelessly to ensure a child predator was removed from society,” stated Lt. Col. Hall.
AFOSI and the FBI investigated this case. Assistant U.S. Attorneys Tracy Thompson prosecuted this case on behalf of the government.
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.
Department of Justice Awards more than $85.3 Million in Grants to Address School ViolenceRead the Press Release
The Department of Justice announced this week it has awarded more than $85.3 million to bolster school security—including funding to educate and train students and faculty—and support first responders who arrive on the scene of a school shooting or other violent incident.
“These federal resources will help to prevent school violence and give our students the support they need to learn, grow, and thrive,’ said Attorney General William P. Barr. “By training faculty, students and first responders, and by improving school security measures, we can make schools and their communities safer.”
The grants award more than $5 million in funding to prevent violence in schools in the Western District of Texas. President Trump signed the STOP School Violence Act into law in March 2018, authorizing grants that are designed to improve threat assessments, train students and faculty to provide tips and leads, and prepare law enforcement officers and emergency professionals to respond to school shootings and other violent incidents. The grant programs are managed by OJP’s Bureau of Justice Assistance and the Justice Department’s Office of Community Oriented Policing Services.
The Bureau of Justice Assistance, within the Department’s Office of Justice Programs, and the Office of Community Oriented Policing Services manage the programs and administer the grants, which include funds to:
- Develop school threat assessment teams and pursue technological solutions to improve reporting of suspicious activity in and around schools;
- Implement or improve school safety measures, including coordination with law enforcement, as well as the use of metal detectors, locks, lighting and other deterrent measures;
- Train law enforcement to help deter student violence against others and themselves;
- Improve notification to first responders through implementation of technology that expedites emergency notifications;
- Develop and operate anonymous reporting systems to encourage safe reporting of potential school threats;
- Train school officials to intervene when mentally ill individuals threaten school safety; and
- Provide training and technical assistance to schools and other awardees in helping implement these programs.
For more details about these individual award programs, as well as listings of individual 2019 awardees, visit https://go.usa.gov/xVJuV.
About the Office of Justice Programs:
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal justice system. More information about OJP and its components can be found at www.ojp.gov.
About the Office of Community Oriented Policing Services:
The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1994, the COPS Office has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and tribal law enforcement agencies to fund the hiring and redeployment of approximately 130,000 officers and provide a variety of knowledge resource products including publications, training and technical assistance. For additional information about the COPS Office, please visit www.cops.usdoj.gov.
Pecos Credit Union C.E.O. and Former State Employee Sentenced to Federal Prison for Financial Institutional Fraud Conspiracy and Failure to File a Tax ReturnRead the Press Release
In Pecos today, a federal judge sentenced Reeves County Teachers Credit Union (RCTCU) Chief Executive Officer and former state of Texas employee James T. “Jimmy” Dutchover to eight (8) months in federal prison for defrauding the credit union and willfully failing to file a federal income tax return, announced U.S. Attorney John F. Bash; FBI Special Agent in Charge Christopher Combs, San Antonio Division; and, Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge Richard D. Goss, Houston Field Office.
In addition to the prison term, U.S. District Judge David Counts ordered that Dutchover pay a $4,000 fine as well as all taxes, penalties and interest owed to the IRS. That amount has yet to be determined. Judge Counts also ordered that Dutchover be placed on supervised release for a period of three (3) years after completing his prison term. Dutchover will remain on bond pending formal notification by the U.S. Bureau of Prisons as to the date and facility he is to surrender to begin serving his prison term.
On May 29, 2019, Dutchover pleaded guilty to a Superseding Information charging him with one count of conspiracy to defraud RCTCU and to obtain money and property owned by it or under its care, custody and control by means of materially false and fraudulent pretenses and representations, and one count of willfully failing to file a federal income tax return.
The government noted at sentencing that Dutchover conspired with then State Senator Carlos Uresti to obtain $10,000 from RCTCU by having a loan made in the name of a relative of Dutchover, which was in reality for the benefit of Uresti and was ultimately paid to the victim in the FourWinds case, Denise Cantu. Further, for the year 2015, Dutchover, having received gross income from several sources, including approximately $9,197 from the State of Texas, wage income in the amount of approximately $107,153 from the Reeves County Teachers Credit Union, and approximately $77,350 from his sole proprietorship, Derich Enterprises, willfully failed to make an income tax return to the IRS.
The FBI’s Public Corruption Task Force consisting of investigators from the FBI and IRS–CI investigated this case. Assistant U.S. Attorneys William R. Harris and Joseph E. Blackwell prosecuted this case for the government.
Department of Justice Awards Ysleta Del Sur Pueblo a $331,827 Grant Under the Violence Against Women Tribal Governments ProgramRead the Press Release
The Department of Justice has awarded the Ysleta del Sur Pueblo (YDSP), a federally recognized Indian Tribe located in El Paso County, a $331,827 federal grant to combat violence against women on their reservation, announced U.S. Attorney John F. Bash.
“Domestic violence is one of the most serious and challenging problems plaguing American society, including Native American communities. This grant will help fund solutions that save lives,” stated U.S. Attorney Bash.
The federal grant awarded to the YDSP is part of a $33.1 million funding package offered by the Office on Violence Against Women Tribal Governments Program. According to YDSP officials, the money will be used to recruit one Violence Against Women (VAWA) police officer assigned to cases concerning domestic violence and/or violence against women in YDSP's jurisdiction. By assigning a VAWA police officer to domestic violence and sexual assault cases, the YDSP will be better equipped to follow through with women victim needs to ensure that they receive a continuum of care beginning with response to calls of domestic violence and sexual assault, to linkage with health & human services, and finally through adjudication of cases working closely with Tribal Court, YDSP's Social Services and other essential community organizations. The VAWA officer will also prioritize community outreach as a mechanism to educate the tribal community of such dedicated resources, while providing necessary referrals and assistance to aid victims. The VAWA officer will also collaborate with intra tribal agency partners to design workshops and presentations intended to mitigate the proliferation of domestic violence on the reservation.
Nationwide, 236 grants were awarded to 149 American Indian tribes, Alaska Native villages and other tribal designees through the Coordinated Tribal Assistance Solicitation (CTAS), a streamlined application for tribal-specific grant programs. Of the $118 million awarded via CTAS, just over $62.6 million comes from the Office of Justice Programs, about $33.1 million from the Office on Violence Against Women and more than $23.2 million from the Office of Community Oriented Policing Services. A portion of the funding will support tribal youth mentoring and intervention services, help native communities implement requirements of the Sex Offender Registration and Notification Act, and provide training and technical assistance to tribal communities. Another $5.5 million was funded by OJP’s Bureau of Justice Assistance to provide training and technical assistance to CTAS awardees.
The Department also announced awards and other programming totaling $167.2 million in a set-aside program to serve victims of crime. The awards are intended to help tribes develop, expand and improve services to victims by supporting programming and technical assistance. About $25.6 million of these awards were awarded under CTAS and are included in the $118 million detailed above.
CTAS funding helps tribes develop and strengthen their justice systems’ response to crime, while expanding services to meet their communities’ public safety needs. The awards cover 10 purpose areas: public safety and community policing; justice systems planning; alcohol and substance abuse; corrections and correctional alternatives; children’s justice act partnerships; services for victims of crime; violence against women; juvenile justice; violent crime reduction; and tribal youth programs.
The Department also provided $6.1 million to help tribes to comply with federal law on sex offender registration and notification, $1.7 million in separate funding to assist tribal youth and nearly $500,000 to support tribal research on missing and murdered indigenous women and children and other public safety-related topics.
Today’s announcement is part of the Justice Department’s ongoing initiative to increase engagement, coordination and action on public safety in American Indian and Alaska Native communities.
A listing of today’s announced CTAS awards is available at: https://www.justice.gov/tribal/awards. A listing of all other announced tribal awards are available at: https://go.usa.gov/xVJuE.
Former Del Rio Sector U.S. Border Patrol Agent Pleads Guilty to Production and Possession of Child PornographyRead the Press Release
In San Antonio this afternoon, a former Del Rio Sector U.S. Border Patrol agent assigned to the Uvalde Station admitted to producing and possessing child pornography, announced U.S. Attorney John F. Bash and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
Appearing before U.S. Magistrate Judge Henry Bemporad, 37-year-old Vernon Lee Millican of Leakey, TX, pleaded guilty to one count of production of child pornography and one count of possession of child pornography. By pleading guilty, Millican admitted that between April 2015 and June 2018, he used multiple devices to produce and possess images and videos of himself sexually assaulting a prepubescent minor; and, depicting the minor engaging in sexually explicit conduct.
Millican was arrested on January 31, 2019, after a federal search warrant was executed at his home. He has since remained in federal custody. Millican faces between 15 and 30 years in federal prison. Sentencing is scheduled for 10:00 a.m. on January 23, 2020, before Chief U.S. District Judge Orlando Garcia in San Antonio.
FBI agents, together with the Department of Homeland Security Office of the Inspector General and the Clackamas County Sheriff’s Office in Oregon, investigated this case with assistance from the Real County Sheriff’s Office. Assistant U.S. Attorney Tracy Thompson is prosecuting this case on behalf of the government.
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.