Western District of Texas
Press releases recorded for this federal judicial district.
Final Defendant Sentenced to Federal Prison for Drug and Firearm Offenses in Connection with the Murder of Two Midlanders in July 2015Read the Press Release
In Midland today, a federal judge sentenced 25-year-old Sean Blake Jobe of Midland, to 30 years in federal prison on firearm and drug trafficking charges in connection with the murder of two Midland residents in July 2015, announced U.S. Attorney John F. Bash, Midland Police Chief Seth Herman and Drug Enforcement Administration (DEA) Special Agent in Charge Kyle W. Williamson, El Paso Division.
In addition to the prison term, U.S. District Judge David Counts ordered that Jobe be placed on supervised release for a period of five years after completing his prison term.
On January 25, 2019, Jobe pleaded guilty to one count of conspiracy to possess with intent to distribute marijuana; one count of discharging a firearm in furtherance of a drug trafficking crime; and, one count of murder resulting from the discharge of a firearm during and in relation to a drug trafficking crime.
By pleading guilty, Jobe admitted that on July 17, 2015, he and his co-defendants—Ryan David Green and Trace Ryan Roland—conspired to murder a Midland man because of drug money the man owed to Roland.
According to court records, in the early morning hours of July 17, 2015, Green and Jobe went to a home in Midland and shot and killed the man and his girlfriend, who were living in a shed behind the home. Then they set fire to the shed and burned the victims beyond recognition.
Earlier this year, both Green and Roland pleaded guilty to the same three federal charges. Yesterday, Judge Counts sentenced Green to 35 years in federal prison followed by five years of supervised release. On September 5, 2019, Judge Counts sentenced Roland to 35 years in federal prison followed by five years of supervised release.
“This was a horrific double-murder case, and I’m glad we achieved some measure of justice for the victims. It’s a reminder that although there’s a lot of good in this world, there’s a lot of evil too,” stated U.S. Attorney Bash.
“The positive aspects of this collaborative effort between local and federal agencies can not overshadow the tragic effect that illicit narcotic trafficking and use have on communities. Not only have the lives of young adults and their families been forever altered in the most tragic of ways, but the wellbeing of an entire community unsettled because of greed and ego,” stated Midland Police Chief Herman. “The Midland Police Department wishes to extend our sincere appreciation to the DEA and the United States Attorney’s Office for their partnership and professionalism throughout this extensive endeavor.”
“The sentencing of the defendants in this investigation sends a strong and unified message that these crimes will not be tolerated in our community and those who commit these offenses will be brought to justice,” stated DEA Special Agent in Charge Williamson. “DEA and their federal, state and local law enforcement partners will continue to work together to keep our community safe.”
The Midland Police Department and the Drug Enforcement Administration investigated this case. Assistant U.S. Attorneys Brandi Young and Glenn Harwood prosecuted this case on behalf of the government.
San Antonio Eastside Drug Dealer Enters Guilty Plea to Federal Drug Trafficking and Firearm ChargesRead the Press Release
In San Antonio today, 38-year-old Charles Lee Bethany admitted to distributing crack cocaine on the city’s east side, announced U.S. Attorney John F. Bash; FBI Special Agent in Charge Christopher Combs, San Antonio Division; Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Fred Milanowski, Houston Division; and, San Antonio Police Chief William McManus.
Appearing before U.S. District Judge Fred Biery, Bethany pleaded guilty to one count of possession with intent to distribute 280 grams or more of cocaine base (“crack”) and one count of being a convicted felon in possession of a firearm. By pleading guilty, Bethany admitted that from March 15, 2017, to July 26, 2017, he distributed crack cocaine from his eastside stash house in the 600 block of J Street in San Antonio.
On July 21, 2017, investigators searched the premises with a warrant and seized approximately 56 grams of cocaine powder and 56 grams of crack cocaine. Investigators also recovered video surveillance equipment. Officers of the San Antonio Police Department Repeat Offenders Project arrested Bethany on July 26, 2017. He has since remained in federal custody.
Court records also reveal information obtained by investigators that suggests Bethany may have been the intended target of a drive-by shooting in the 400 block of Spriggsdale that occurred shortly after 4:00 p.m., on July 19, 2017. That shooting was followed by another the same day, shortly before midnight in the 200 block of Hub Street, in which a 4-year-old boy was killed. Surveillance video recovered from Bethany’s stash house indicates that later that night a number of individuals appearing to be in possession of firearms left the location on J Street about 12 minutes before the shooting on Hub Street. According to the surveillance, those individuals returned to the J Street address moments after the shooting. While Bethany was not part of that group, he is see on the video possessing three firearms including an AR-15 pistol. The investigation into those shootings continues.
Bethany’s criminal history includes two felony convictions for possession of a controlled substance (2004, 2008) and one felony conviction for evading detention motor vehicle (2008), all in Bexar County, Texas.
Bethany, who faces between ten years and life in federal prison, is scheduled for sentencing on February 13, 2020, in front of Judge Biery.
The FBI, ATF and San Antonio Police Department conducted this investigation. Assistant U.S. Attorney Sarah Wannarka is prosecuting this case on behalf of the government.
Midland Man Sentenced to Federal Prison for Drug and Firearm Offenses in Connection with the Murder of Two Midlanders in July 2015Read the Press Release
In Midland today, a federal judge sentenced 27-year-old Ryan David Green to 35 years in federal prison on firearm and drug trafficking charges in connection with the murder of two Midland residents in July 2015, announced U.S. Attorney John F. Bash, Midland Police Chief Seth Herman and Drug Enforcement Administration (DEA) Special Agent in Charge Kyle Williamson, El Paso Division.
In addition to the prison term, U.S. District Judge David Counts ordered that Green be placed on supervised release for a period of five years after completing his prison term.
On July 10, 2019, Green pleaded guilty to one count of conspiracy to possess with intent to distribute marijuana; one count of discharging a firearm in furtherance of a drug trafficking crime; and, one count of murder resulting from the discharge of a firearm during and in relation to a drug trafficking crime.
By pleading guilty, Green admitted that on July 17, 2015, he and his co-defendants—Sean Blake Jobe and Trace Ryan Roland—conspired to murder a Midland man because of drug money the man owed to Roland.
According to court records, in the early morning hours of July 17, 2015, Green and Jobe went to a home in Midland and shot and killed the man and his girlfriend, who were living in a shed behind the home. Then they set fire to the shed and burned the victims beyond recognition.
Earlier this year, both Jobe and Roland pleaded guilty to the same three federal charges. Sentencing for Jobe is scheduled for tomorrow at 9:00am before Judge Counts in Midland. On September 5, 2019, Judge Counts sentenced Roland to 35 years in federal prison followed by five years of supervised release.
The Midland Police Department and the DEA investigated this case. Assistant U.S. Attorneys Brandi Young and Glenn Harwood are prosecuting this case on behalf of the government.
Nigerian National Pleads Guilty for Role in Conspiracy to Launder Millions from Business Email Compromise FraudRead the Press Release
In Austin this afternoon, a Nigerian National formerly residing in San Antonio and Austin pleaded guilty to his role in a Business Email Compromise (BEC) fraud conspiracy that laundered millions of dollars, 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.
Appearing before U.S. Magistrate Judge Andrew Austin, 31-year-old Chibuzor Stanley Uba pleaded guilty to one count of conspiracy to launder monetary instruments. By pleading guilty, Uba admitted to conspiring with others to collect funds by defrauding U.S. and foreign victims through BEC schemes.
Uba’s co-defendants include fellow Nigerian Nationals: Bameyi Kelvin Omale, a 32-year-old resident of Houston; Nnamdi Nwosu, a 32-year-old resident of Houston; Chinonso Agbaji, a 30-year-old resident of Houston; and, Igho Calaba, a 25-year-old resident of Austin. Omale, Agbaji and Calaba have all pleaded guilty to the money laundering conspiracy charge and are awaiting sentencing. Uba, Omale, Agbaji and Calaba face up to 20 years in federal prison. Nwosu remains a fugitive in this case.
According to the indictment in this case and court records, Uba and his codefendants were also conspiring with Joseph Odibobhahemen and Nosa Onaghise. Odibobhahemen and Onaghise, who were charged in a separate indictment, have previously pleaded guilty and are awaiting sentencing. Court records also reflect that 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.
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.
Whatever the BEC method used, the scammers need bank accounts controlled by coconspirators to collect the stolen money. The conspirators in this investigation acquired or controlled dozens of bank accounts opened in the U.S., including in Austin, TX, 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.
This indictment resulted from a continuing investigation by HSI and USPIS. The FBI also assisted in the investigation as did the California Highway Patrol. The U.S. Attorney’s Offices for the Southern District of Texas and the Southern District of New York also provided assistance. Assistant U.S. Attorneys Michael Galdo and Keith Henneke are prosecuting this case on behalf of the Government.
Anyone with information as to the whereabouts of Nnamdi Nwosu is asked to contact U.S. Immigration and Customs Enforcement (ICE). ICE encourages the public to report any suspicious activity through its toll-free Tip Line at 1-866-DHS-2-ICE or by completing its online tip form. Both are staffed around the clock by investigators. From outside the U.S. and Canada, callers should dial 802-872-6199. Hearing impaired users can call TTY 802-872-6196.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. Nwosu is presumed innocent until proven guilty in a court of law.
Former Texas Mexican Mafia Free World General Sentenced to Life in Federal Prison for Extortion ConspiracyRead the Press Release
In San Antonio this afternoon, a federal judge sentenced 54-year-old Raul Ramos (aka “Alto,” “Naranjo,” “GQ”) to life in federal prison for his leadership role in a conspiracy to extort money from drug traffickers operating in their territory without permission, announced U.S. Attorney John Bash, FBI Special Agent in Charge Christopher Combs, San Antonio Division.
In addition to the prison term, U.S. District Judge Xavier Rodriguez ordered that Ramos pay a monetary judgement in the amount of $275,500 representing a portion of the profits derived from the criminal scheme.
On May 2, 2018, Ramos pleaded guilty to one count of conspiracy to commit extortion, one count of conspiracy to distribute controlled substances, and one count of prohibited person in possession of a firearm.
According to court records, Ramos assumed the rank of Texas Mexican Mafia (TMM) Free World General based in San Antonio on or before January 1, 2015. 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; 21 of which have resulted in sentences ranging from 63 months to life in federal prison. Sixteen (16) defendants are awaiting sentencing.
“Dismantling violent gangs is a continuing priority for the FBI. We share a long commitment with our law enforcement partners to address the dangerous threat facing our communities. Today's sentence should send a clear message to those who are involved in gang related enterprises - we will not tolerate the violence, fear and intimidation you inflict on our neighborhoods,” stated FBI Special Agent in Charge Combs.
This federal indictment 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, weapons trafficking and money laundering operations, and those primarily responsible for the nation’s illegal drug supply.
Federal Jury Convicts Owner of Bullion Direct, Inc. in Austin for Investment and Wire Fraud SchemeRead the Press Release
In Austin today, a federal jury convicted 49-year-old Charles McAllister, CEO and owner of Bullion Direct, Inc. (BDI), of money laundering and scheming to defraud customers out of millions of dollars, 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 State Securities Board Commissioner Travis J. Iles.
The jury convicted McAllister of two counts of wire fraud and one count of engaging in a monetary transaction with criminally derived property.
According to evidence presented during the five-day trial, from at least January 2009 through July 2015, McAllister perpetrated a scheme that falsely represented that funds obtained from individual customers would be used to purchase precious metals on behalf of the customer and either shipped directly to the customer or stored in BDI’s vault. Instead of buying the precious metals with the customer’s funds and storing customer metals, McAllister spent customer property on BDI corporate expenses, on other investment activities, and for his own personal use and benefit.
McAllister, who is currently on bond, faces up to 20 years in federal prison for each wire fraud count and up to ten years in federal prison for the money laundering charge. The Court is also considering entering a $16,186,212.56 monetary judgment against McAllister that represents the amount of proceeds obtained directly or indirectly from the defendant’s alleged scheme. Sentencing is scheduled for 9:00am on December 19, 2019, before U.S. District Judge Lee Yeakel.
Agents with the FBI, IRS Criminal Investigation and the Texas State Securities Board conducted this investigation. Assistant U.S. Attorneys Dan Guess and Keith Henneke are prosecuting this case on behalf of the government.
Uvalde Man Sentenced to Federal Prison in Farm Loan Fraud CaseRead the Press Release
A federal judge in Del Rio has sentenced Ruben James Valadez, age 45 of Uvalde, TX, to six months in federal prison for his role in a farm loan scheme, announced U.S. Attorney John Bash.
During sentencing yesterday afternoon in Del Rio, U.S. District Judge Alia Moses also ordered Valadez to perform 200 hours of community service in lieu of a fine; pay $15,782 in restitution to the United States Department of Agriculture (USDA) (joint and severally with co-defendant Barbara Serna Salinas); and, be placed on supervised release for a period of five years after completing his prison term.
On April 26, 2018, Valadez pleaded guilty to one count of making a false statement on a loan application. By pleading guilty, Valadez admitted that in order to secure a $15,000 FSA loan in June 2016, he provided false information and paid cash and other incentives to Serna, a former loan officer for the USDA Farm Service Agency (FSA) in Uvalde. Valadez and Eric Torres Neira of San Antonio, received FSA loans totaling more than $150,000 as a result of this scheme.
On April 9, 2019, Judge Moses sentenced Serna to two years in federal prison and ordered her to pay $166,744.20 in restitution to the USDA. On December 4, 2018, Judge Moses sentenced Neira to five months imprisonment and ordered him to pay restitution to the USDA, joint and severally with Serna, in the amount of $142,961.94.
The USDA Office of Inspector General-Investigations, with the assistance of the FBI, conducted this investigation. Assistant U.S. Attorneys Todd Keagle and Joshua Banister are prosecuting this case on behalf of the Government.
Fentanyl Distributor who Used the Dark Web and Crypto Currency in Furtherance of his Criminal Enterprise Sentenced to 30 Years in Federal PrisonRead the Press Release
In what is believed to be the first fentanyl distribution case using the dark web and crypto currency in the Southwest Organized Crime Drug Enforcement Task Force (OCDETF) Region, a federal judge in San Antonio today sentenced 30-year-old Alaa Mohammed Allawi to 30 years in federal prison for distributing approximately 245 kilograms of fentanyl, cocaine, methamphetamine, oxycodone and Xanax. The distribution of fentanyl-laced oxycodone pills, through the use of the dark web and crypto currency, resulted in the overdose death of a U.S. Marine stationed at Camp Lejeune, North Carolina, and serious bodily injury to two Grand Forks, North Dakota, residents.
That announcement was made today by U.S. Attorney John F. Bash, DEA Special Agent in Charge Will Glaspy, Houston Division; Inspector in Charge Adrian Gonzalez, U.S. Postal Inspection Service, Houston Division; IRS-Criminal Investigation Special Agent in Charge Richard D. Goss, Houston Field Office; Naval Criminal Investigative Service Special Agent in Charge Charles Humenansky, Carolinas Field Office; San Antonio Police Chief William McManus; and, University of Texas at San Antonio Police Chief Gerald Lewis, Jr.
In addition to the prison term, Senior U.S. District Judge David A. Ezra entered a $14.32 million money judgment against Allawi based on his online dark net sales profit. Judge Ezra also ordered that Allawi forfeit to the government his San Antonio residence, valued at approximately $270K; five firearms including an AR style assault rifle; approximately $28K in U.S. currency; more than $21K in crypto currency, an assortment of jewelry valued at over $31K, four (4) vehicles including a 2013 Maserati Gran Turismo, and any and all rights in a “DRNK coffee + tea” franchise (in California).
“The United States welcomed Allawi into our country from war-torn Iraq in 2012. But instead of taking advantage of the many opportunities this country affords, he decided to make money by peddling a deadly narcotic to Americans in the grips of addiction,” said U.S. Attorney Bash. “This case illustrates many of the emerging threats that law enforcement is confronting. Allawi and his co-conspirators manufactured and distributed oxycodone laced with deadly fentanyl – over 350,000 such pills – to people suffering from opioid addiction, targeting a college campus here in San Antonio. At least one victim – a United States Marine – died from a fentanyl overdose, and at least two others suffered non-fatal overdoses. The co-conspirators attempted to conceal their activities by operating through the dark web and using seven different crypto-currencies. I am proud of our office and the law enforcement partners who uncovered and destroyed this conspiracy. Thirty years in federal prison is a just sentence for this despicable conduct.”
On June 21, 2019, Allawi pleaded guilty to one count of conspiracy to possess with intent to distribute fentanyl resulting in death and serious bodily injury, one count of possessing a firearm in furtherance of a drug trafficking crime and one count of conspiracy to commit money laundering.
According to records, Allawi arrived in the U.S. from Iraq in 2012 on a SQ1 visa granted to him based on his service as an interpreter for the Department of Defense while in Iraq.
This investigation began in 2015, when the San Antonio Police Department and the University of Texas at San Antonio (UTSA) Police Department began looking into a surge in various prescription pills found on the campus and in the student housing of UTSA. Allawi was subsequently identified as the manufacturer and supplier of the pills. By pleading guilty, Allawi admitted that beginning in 2015, he purchased fentanyl and industrial size pill presses from the dark net website called AlphaBay. Allawi also used AlphaBay to sell his pills which were laced with fentanyl or methamphetamine. Allawi accepted seven different crypto currencies, such as Bitcoin and Ethereum, as payment for the pills. AlphaBay has been subsequently shut down by law enforcement.
There are a total of eight (8) defendants in this federal indictment. Three, including Allawi, have been sentenced. Five have entered guilty pleas and are awaiting sentencing. A 9th defendant, Kunal Kalra, age 25 of Los Angeles, is charged by an Information pending in the Central District of California with conspiracy to launder monetary instruments. Allawi laundered his digital currency through Kalra. Kalra and Allawi both set up sham businesses as fronts to transfer the digital currency into U.S. currency, and vice versa. In so doing, Allawi used his illegal proceeds to purchase interest in a business, vehicles, residences, and jewelry.
On May 17, 2017, authorities executed a search warrant at Allawi’s stash house in Fort Bend County and seized ½ kilogram of fentanyl powder, ½ kilogram of crystal methamphetamine, ½ kilogram of powder cocaine, 10 kilograms of Hydrocodone pills laced with fentanyl, four kilograms of Adderall pills laced with methamphetamine, five kilograms of Xanax tablets, multiple industrial-size pill presses and four firearms. The total number of pills distributed on the dark web by Allawi during his scheme is estimated to be around 850,000, including:
Oxycodone laced with fentanyl 359,553 pills Weight 35.9 kilograms
Adderall laced with methamphetamine 342,551 pills Weight 173.6 kilograms
Xanax 45,395 pills Weight 32.36 kilograms“Today’s sentencing of Allawi is an indication of the sophistication and callousness with which Allawi conducted his illegal drug activities. From his use of the dark web, to his clandestine manufacturing of counterfeit pills laced with fentanyl, to his drug sales targeting college students, Allawi operated with little concern for the people in our communities,” said DEA Special Agent in Charge Glaspy.
Regarding the overdose death, NCIS Special Agent in Charge Humenansky noted that fentanyl-laced pills sold by Allawi were purchased using the dark web by Marine Sergeant Anthony P. Tognietti, in coordination with Marine Corporal Marcos Jamie Villegas; both of whom were stationed at Camp Lejeune, North Carolina. During a party in 2017, Villegas gave a fentanyl-laced pill to 20-year-old Corporal Mark M. Mambulao, who died shortly after consuming it. Villegas was kicked out of the Marine Corps on Tuesday and was arraigned yesterday in federal court in the Raleigh Division of the Eastern District North Carolina, for distributing a quantity of pills containing oxycodone and fentanyl, and aiding and abetting. Sgt. Tognietti was arraigned on the same charges in April of this year.
“This case underscores the value of law enforcement agencies working together. The U.S. Postal Inspection Service (USPIS), and the Drug Enforcement Administration (DEA) were actively investigating Allawi when NCIS made them aware of the death of Corporal Mambulao. The subsequent joint investigation by DEA, USPIS and NCIS linked the pills purchased by Villegas to Allawi, which ultimately resulted in the charge of conspiracy to possess with intent to distribute 400 grams or more of fentanyl resulting in death or serious bodily injury, and today’s stiff 30-year sentence for Allawi,” stated NCIS Special Agent in Charge Humenansky.
“Opioids such as fentanyl are a public health crisis that have taken countless lives and destroyed many more,” said U.S. Postal Inspector in Charge Gonzalez. “Postal Inspectors have always made it their mission to protect the public and the U.S. Postal Service from drug traffickers who try to use the mail to distribute their poison. The sentence handed down today should serve as a reminder to other perpetrators engaged in this type of criminal activity that we will continue to work closely with all of our law enforcement partners to ensure they are brought to justice.”
“Today’s sentencing of Alaa Allawi for his role in the distribution of illegal drugs laced with deadly fentanyl and money laundering of the illegal proceeds from his operation is a victory for the American public and a defeat to drug traffickers everywhere,” said IRS Criminal Investigation Special Agent in Charge Goss. “The Special Agents of IRS Criminal Investigation continue in their mission to disrupt the flow of ill-gotten gains that is the life-blood for these criminals.”
Agents and officers with the DEA, U.S. Postal Inspection Service, IRS Criminal Investigation, Naval Criminal Investigation Service (NCIS), San Antonio Police Department and the University of Texas at San Antonio Police Department conducted this OCDETF investigation. Assistant U.S. Attorney Sarah Wannarka is prosecuting this case on behalf of the government. Mr. Bash extends his appreciation to the U.S. Attorney’s Offices in the Eastern District of North Carolina, District of North Dakota and the Central District of California for their cooperation with this prosecution.
The principal mission of the 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.
Federal charges are not considered as evidence of guilt. The defendants are innocent until proven guilty in a court of law.
San Antonio Man Sentenced to 15 Years in Federal Prison for Attempting to Solicit a Minor for SexRead the Press Release
In San Antonio today, Senior U.S. District Judge David A. Ezra sentenced Reynaldo Salinas of San Antonio to 15 years in federal prison followed by ten years of supervised release for attempting to coerce a minor into engaging in sexually explicit conduct, announced U.S. Attorney John F. Bash.
“I am proud that our office just took another child predator off the streets. I am also glad that increasing national attention is being focused on the problem of child sexual abuse in the United States. We need significantly greater efforts nationwide to fight this scourge,” stated U.S. Attorney Bash.
On June 27, 2019, a federal jury convicted the 27–year-old U.S. Army mechanic at Camp Bullis of one count of attempted enticement of a minor and one count of attempted transfer of obscene material to a minor. Evidence presented during trial revealed that in September 2017, Salinas engaged in online communications with someone he believed was a 14-year-old girl. During these online conversations, the defendant transmitted multiple nude photos of himself and expressed his desire to engage in sexual intercourse, as well as other sexually explicit behavior, with the minor. In reality, the defendant was communicating with an undercover federal agent.
Agents with the Air Force Office of Special Investigations investigated this case. Assistant U.S. Attorneys Bettina Richardson and Eric Yuen 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.
17 Charged in Federal Indictment Alleging Cocaine/Heroin/Meth Trafficking in AustinRead the Press Release
This week, federal, state and local authorities arrested 13 individuals residing in Austin, including ringleader Juan Aguirre, in connection with a cocaine/heroin/methamphetamine trafficking operation, announced U.S. Attorney John F. Bash, Drug Enforcement Administration (DEA) Special Agent in Charge Will R. Glaspy, Houston Division, Austin Police Chief Brian Manley, Cedar Park Police Chief Sean Mannix, Texas Department of Public Safety Director Steven McCraw, Hays County Sheriff Gary Cutler, and IRS-Criminal Investigation (IRS-CI) Special Agent in Charge Richard D. Goss, Houston Field Office.
A federal grand jury indictment, returned in Austin and unsealed this week, charges those 13 plus four others residing in Austin who were previously arrested, with conspiracy to distribute a controlled substance. The defendants, allegedly, conspired to distribute more than five kilograms of cocaine, more than one kilogram of heroin, methamphetamine and other narcotics in Austin since December 2016. During this investigation, authorities seized approximately 20 kilograms of methamphetamine, seven kilograms of cocaine, five kilograms of heroin and more than $594,000 in U.S. Currency and assets attributed to this organization.
Defendants who are charged in this indictment include: 32-year-old Juan Angel Aguirre (aka “Larry Aguirre”), 35-year-old Thomas Daniel Garcia, 40-year-old Daniel Orozco, 34-year-old Sergio Gonzalez-Martinez (aka “Flaco”), 35-year-old Eloy Jaimes-Jaramillo, 30-year-old Francisco Jaimes-Jaramillo (aka “Pancho”), 30-year-old Magaly Ortiz-Cabrera, 37-year-old Isaias Rodriguez-Ramirez, 26-year-old Gerardo Cruz-Jaramillo, 24-year-old Christian Maya-Garcia (aka “Kike”), 32-year-old Saul Lopez, Jr., 32-year-old Salatiel Martinez-Fierro, 20-year-old Jesus Garcia-Vargas (aka “Junior”), 26-year-old Leonardo Flores-Solis, 28-year-old Ociel Diaz-Torres, 42-year-old Abel Duarte-Castro, and 21-year-old Daniel Maya-Garcia (aka “Pelon,” “Bola”). Gonzalez-Martinez, Flores-Solis, Diaz-Torres, and Duarte-Castro were already in custody prior to this week.
“The arrests made this week conclude an 18-month comprehensive investigation by the DEA and its state and local law enforcement partners here in Austin into the criminal activities of a dangerous poly drug trafficking organization,” said DEA SAC Glaspy. “With these arrests, key command and control elements of this criminal organization’s leadership have been apprehended and removed from the communities they sought to prey upon.”
All of the defendants remain in federal custody. Each defendant faces between ten years and life in federal prison upon conviction. Detention hearings are expected to occur over the next two weeks in U.S. Magistrate Court in Austin.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
This case resulted from an investigation conducted by the DEA, Austin Police Department, Cedar Park Police Department, Texas Department of Public Safety, Hays County Sheriff’s Office, and IRS-CI. U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations (ICE-ERO) assisted with the arrests. Assistant U.S. Attorney Douglas Gardner is prosecuting this case on behalf of the Government.
Federal Government Employee at Camp Mabry in Austin Charged with Theft of over $1 Million in Military EquipmentRead the Press Release
In Austin today, a federal government employee at Camp Mabry surrendered himself to federal authorities on charges that he allegedly stole and unlawfully sold more than $1 million worth of items from the military installation in Austin, announced U.S. Attorney John F. Bash.
A federal criminal complaint filed today charges 35–year-old Joseph Mora with one count of theft of government property and one count of conspiracy to commit fraud against the U.S. The complaint states that Mora has served as a Program Analyst at the U.S. Property and Fiscal Office warehouse since 2013. The complaint alleges that Mora conspired to remove large quantities of sensitive military grade equipment, including rifle scopes, infrared laser aiming devices and thermal night vision goggles, from the facility without authorization. He later sold many of the stolen items on eBay and by other means.
On Tuesday, federal agents executed a search warrant at the defendant’s residence and recovered dozens of items believed to be stolen from Camp Mabry, to include pelican cases containing aiming lights, a pallet of night vision goggles and tripods.
Upon conviction, Mora faces up to ten years in federal prison on the theft charge and up to 20 years in federal prison on the fraud charge. He was released on a $10,000 bond following his initial appearance today in U.S. Magistrate Court in Austin.
Agents with the Defense Criminal Investigative Service (DCIS), Homeland Security Investigations (HSI), U.S. Army Criminal Investigative Command (Army CIC), U.S. Postal Inspection Service (USPIS) and the Texas Rangers are investigating this case. Assistant U.S. Attorneys Michael Galdo and Karthik Srinivasan are prosecuting this case on behalf of the Government.
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.
United States Files False Claims Act Complaint against Participants in Hospital Development Project for Improperly Obtaining Government-Insured Loan and Misusing Loan FundsRead the Press Release
The United States has filed a complaint under the False Claims Act and the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 against Lakeway Regional Medical Center, LLC (LRMC); Surgical Development Partners, LLC (SDP); G. Edward Alexander; Frank Sossi; and John Prater for improperly obtaining a loan insured by the Federal Housing Administration (FHA) and for impermissibly distributing project funds relating to the development of Lakeway Regional Medical Center in Lakeway, Texas, the Department of Justice announced.
“Participants in FHA programs undertake important commitments, and they must honor them and be truthful in their representations,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “This lawsuit demonstrates the Department’s commitment to holding accountable those who violate the requirements of this important program.”
“We will do what it takes to ensure that the American people are not left footing the bill when borrowers fail to comply with FHA program requirements intended to protect the public fisc,” said U.S. Attorney John Bash of the Western District of Texas.
The FHA, part of the U.S. Department of Housing and Urban Development (HUD), insures loans used to build hospitals in underserved areas. The United States’ complaint alleges that the defendants participated in a scheme to improperly obtain an FHA-insured loan to build the Lakeway hospital by delaying refunds to investors who had cancelled their investments to make it appear as if the project satisfied mortgage covenants regarding the cash on hand required to close the loan. The complaint also alleges that the defendants impermissibly distributed project funds.
“It is deeply disconcerting when industry professionals, who have fiduciary responsibilities and are expected to act as honest brokers, exploit federal programs created to aid legitimate medical facilities,” said Jeremy L. Kirkland, Counsel to the Inspector General, HUD Office of Inspector General. “This settlement demonstrates our continuing resolve, and should serve as a warning, that we will pursue those engaged in behavior that undermines federal insurance programs.”
“HUD will not tolerate FHA participants obtaining federally insured mortgages under false pretenses,” said HUD General Counsel Paul Compton. “Lakeway Regional Medical Center and its affiliates misrepresented facts that enabled them to obtain an FHA insured loan, and deliberately hid certain information from HUD. Today, HUD joins the Justice Department and the U.S. Attorney for the Western District of Texas to send a very clear message that the United States will seek accountability against those who defraud HUD programs.”
This matter was investigated by the Commercial Litigation Branch of the Department of Justice’s Civil Division, the U.S. Attorney’s Office for the Western District of Texas, HUD, and the HUD Office of Inspector General. The claims asserted against the defendants are allegations only, and there has been no determination of liability.
Separated U.S. Army Solider from Nacogdoches, TX, Sentenced to Federal Prison for Theft and Possession of Stolen Firearms on Fort BlissRead the Press Release
In El Paso today, a federal judge sentenced a 25–year-old separated U.S. Army soldier from Nacogdoches, TX, who still had access to Fort Bliss, to 18 months in federal prison followed by three years of supervised release for theft and possession of stolen firearms on Fort Bliss, announced U.S. Attorney John F. Bash.
In addition to the prison term, U.S. District Judge David Guaderrama ordered that Christopher Darnell Harris be placed on supervised release for a period of three years after completing his prison term.
On April 23, 2019, Harris pleaded guilty to two counts of possession of stolen firearms, once count of theft on Ft. Bliss, unlawful carrying of firearms on Ft. Bliss, and simple possession of marijuana while on Ft. Bliss.
By pleading guilty, Harris admitted that from April 2017 and June 2017, he entered two gymnasiums on post and stole items from inside the lockers of at least ten known service members, namely wallets and keys. Harris also used the stolen keys to break into vehicles and steal two handguns.
Agents with the Department of Defense Criminal Investigation Command investigated this case along with Military Police on Fort Bliss. Special Assistant U.S. Attorney Alana Malia O’Reilly and Assistant U.S. Attorney Greg McDonald prosecuted this case on behalf of the Government.
Former Bank Employee in Austin Sentenced to Federal Prison for Stealing over One Million Dollars from CustomerRead the Press Release
In Austin today, a federal judge sentenced 40–year-old former Austin Capital One bank employee Paola Gallego of Round Rock, TX, to five years in federal prison for stealing over $1 million from a bank customer, announced U.S. Attorney John F. Bash, FBI Special Agent in Charge Christopher Combs, San Antonio Division, and Special Agent in Charge Laurie L. Younger, FDIC Office of Inspector General (FDIC OIG), Dallas Region.
In addition to the prison term, U.S. District Judge Robert Pitman ordered Gallego to pay a monetary judgment forfeiture in the amount of $1.2 Million; pay $1,403,979.13 in restitution to Capital One Bank (which had reimbursed the victims for their losses); and, be placed on supervised release for a period of four years after completing her prison term. Gallego remains on a $1 million bond pending Bureau of Prisons notification as to when and where to report to begin her prison sentence.
On May 9, 2019, Gallego pleaded guilty to one count of bank fraud and agreed to liquidate and remit certain assets and properties to be applied towards restitution.
Court records and testimony show that beginning in April 2014, Gallego began servicing the Capital One accounts of an elderly Austin couple. Gallego told one of her victims that if the spouse should die, another family member could take control of the money in their bank account—approximately $4.4 million. In September 2016, the victim took $400,000 and opened up an account at Wells Fargo Bank with Gallego’s assistance. Over the next two weeks, Gallego spent $94,779.13 on personal and family expenditures including a $50,000 wire transfer to Bancolombia on September 28, 2016, and a $20,586.81 online credit card payment to Chase Bank to an account in the name of her mother. Wells Fargo closed that account on suspicions of elder abuse.
Gallego and her victim subsequently opened another joint checking account, this time at J.P. Morgan Chase (Chase Bank). Gallego told a Chase Bank employee that she was her victim’s caretaker and a stay-at-home mother, which was false. Gallego then opened up a separate individual bank account at Chase Bank. Between October 14, 2016 and April 20, 2017, Gallego’s victim withdrew $1.2 million from the joint Capital One account via cashier’s checks with the understanding that Gallego would deposit those funds into their joint account at Chase Bank for investment purposes. Instead, Gallego deposited those checks into her own Chase Bank account and used the money for personal expenses, including purchasing a Range Rover Sport HSE, shopping, a Hawaiian vacation, making home improvements including a pool, making mortgage payments, paying off family member’s credit card balances, and purchasing a VW Passat for her parents.
“Stealing money by defrauding the elderly is reprehensible. We will continue to smoke out wrongdoers in our community who take advantage of the most vulnerable citizens,” stated U.S. Attorney Bash.
“This is a clear cut case of an individual taking full advantage of vulnerable victims for financial gain,” stated FBI Special Agent in Charge Combs. “We will continue our vigorous pursuit of those who commit such unscrupulous actions with little or no regard for their victims.”
“The FDIC OIG, along with its law enforcement partners, is dedicated to pursuing those who commit schemes to defraud the nation’s federally insured financial institutions and its customers,” stated FDIC OIG Special Agent in Charge Younger.
Agents with the FBI, including an FBI Task Force officer from the Texas Department of Public Safety, and the FDIC OIG investigated this case. Assistant U.S. Attorneys Michael Galdo and Neeraj Gupta prosecuted this case on behalf of the Government.
Two Austin Psychologists, Owners of Psychological A.R.T.S., P.C., Sentenced for Health Care OffensesRead the Press Release
In Austin today, a federal judge sentenced two Austin psychologists who own and operate Psychological A.R.T.S., P.C., and their patient recruiter for Health Care fraud related offenses, announced United States Attorney John F. Bash, FBI Special Agent in Charge Christopher Combs, San Antonio Division, and Texas Attorney General Ken Paxton.
U.S. District Judge Xavier Rodriguez sentenced 34-year-old Dr. David Fox Dubin, to three years in federal prison and ordered him to pay $282,019.92 restitution. Judge Rodriguez also sentenced 74-year-old Dr. William Joseph Dubin and 70-year-old patient recruiter Glen Elwood McKenzie, Jr., of Cedar Park, TX, to five years probation and ordered each of them to pay, joint and severally, $61,230 restitution.
On October 29, 2018, jurors found the Dubins guilty of multiple federal crimes. Dr. William Dubin was found guilty of one count of conspiracy to pay and receive health care kickbacks, and two counts of offering to pay and paying illegal kickbacks. Dr. David Dubin was found guilty of one count of conspiracy to commit health care fraud, one count of health care fraud and aiding and abetting health care fraud, and one count of aggravated identity theft.
On October 11, 2017, McKenzie pleaded guilty to one count of conspiracy to violate the federal anti-kickback law and one count of receiving an illegal kickback. McKenzie was the President of the Board of Directors of an emergency shelter house located approximately eighty miles from Austin that provided temporary shelter for crisis intervention and mental health services to children and youth ages 5 to 17 who had been removed from their homes by the Texas Department of Family and Protective Services.
Evidence provided during trial revealed that Dr. William Dubin paid McKenzie to use his position at the emergency shelter to refer children and youth to Psychological A.R.T.S., for comprehensive mental health services, which were billed to the Medicaid program. Upon receipt of payment for these services, Dr. William Dubin paid McKenzie a 10-percent kickback from the money paid to Psychological A.R.T.S.
Evidence during trial also revealed that Dr. David Dubin engaged in a conspiracy to commit health care fraud and committed health care fraud by causing at least one fraudulent billing to be submitted to the Medicaid program. Evidence further revealed that Dr. David Dubin engaged in aggravated identity theft when he caused a fraudulent claim to be submitted to Medicaid and unlawfully used a patient’s personal identification information to obtain payment of the bill.
Special Agents with the Federal Bureau of Investigation together with investigators from the Texas Attorney General’s Medicaid Fraud Control Unit investigated this case. Special Assistant U.S. Attorney Rex Beasley and Assistant U.S. Attorneys Greg Surovic, Justin Chung, and Daniel Castillo prosecuted this case on behalf of the Government.
Two Investigations in Waco and Bell County Areas Net 16 Arrests Today on Federal Firearms and Narcotics Trafficking ChargesRead the Press Release
This morning, federal and state authorities arrested 16 individuals stemming from two separate investigations into narcotics trafficking in the Waco and Bell County areas, announced United States Attorney John F. Bash; FBI Special Agent in Charge Christopher Combs; Drug Enforcement Administration (DEA) Special Agent in Charge Will Glaspy, Houston Division; Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden; Texas Department of Public Safety Director Steven McCraw; Waco Police Chief Ryan Holt; McLennan County Sheriff Parnell McNamara; and, Lacy Lakeview Police Chief John Truehitt.
The first investigation, conducted by FBI, DEA, TXDPS, Waco Police Department, McLennan County Sheriff’s Office and Lacy Lakeview Police Department, resulted in nine (9) arrests today and three (3) prior arrests based on five (5) federal grand jury indictments unsealed today in Waco. During this investigation, authorities seized approximately two kilograms of methamphetamine, four kilograms of cocaine, approximately $50,000 in U.S. Currency, four firearms (including a Mini Draco AK47 assault style pistol), several pounds of marijuana and several hundred THC vaping pens. Also in regards to this investigation, authorities today seized seven (7) firearms, including two (2) AR-15’s (one with night vision equipment), one (1) AK47 pistol, and one (1) AK47 rifle, and approximately $3,600 in U.S. Currency.
- XAVIER ANGELO HERNANDEZ, et al. INDICTMENT – W19cr258
This indictment charges eight (8) defendants with conspiracy to possess with intent to distribute at least 500 grams of methamphetamine in the Waco area since September 2018. Each defendant faces between ten years and life in federal prison upon conviction. Individuals charged in the Hernandez indictment include:
Name, Age, Residence
Xavier Angelo Hernandez (aka “X”), 23, Waco
**Steven Matthew Ochoa, 29, Waco
Julio Cesar Cruz, 26, Waco
Martin Zuniga, Jr., 19, Waco
Gaspar Sardaneta Martinez (aka “Garza”), 28, Waco
Carline Stone Bolding, 49, Elm Mott, TX
Cheryl Ann Flanagan (aka “Cheryl Guajardo “), 40, Waco
Sabrina Maria Sardaneta, 28, Robinson, TX
- CHRISTOPHER MIKEL CLARK INDICTMENT – W19cr256
This indictment charges Christopher Mikel Clark (aka “Little Chris”), age 20 of Waco, with one count of possession of a firearm in furtherance of a drug trafficking crime. Clark faces a mandatory minimum of five years in federal prison upon conviction. In June 2019, authorities executed a search warrant at the defendant’s residence where they recovered marijuana and a Mini Draco AK47 assault style pistol.
- JOSEPH RYAN EDWARDS INDICTMENT – W19cr257
This indictment charges Joseph Ryan Edwards, age 26 of Waco, with one count of possession of a firearm in furtherance of a drug trafficking crime. Edwards faces a mandatory minimum of five years in federal prison upon conviction. During a traffic stop in June 2019, law enforcement searched the defendant’s vehicle and found a .380 caliber pistol, 41 THC Oil pens, and approximately $2,900.00 in U.S. Currency.
- STEVEN MATTHEW OCHOA INDICTMENT – W19cr260
This indictment charges previously named defendant, Steven Ochoa, with one count of possession with intent to distribute at least 500 grams of cocaine. Ochoa faces between five years and 40 years in federal prison upon conviction. In August 2019, Ochoa was arrested with four (4) kilos of cocaine and approximately $16,000 in U.S. Currency.
- AMOR ESPERANZA ZUNIGA, et al. INDICTMENT – W19CR271
This indictment charges **Amor Esperanza Zuniga (aka “Stony Zuniga”), age 19 of Waco, with one count of possession with intent to distribute at least 50 grams of methamphetamine and one count of possession of a firearm in furtherance of a drug trafficking crime. The indictment also charges Zuniga and **Heraclio Santos Carreon, age 41 of Waco, with one count of conspiracy to possess with intent to distribute methamphetamine. Each drug charge calls for between five years and 40 years in federal prison upon conviction. The firearms charge calls for a mandatory minimum of five years in federal prison upon conviction. During a traffic stop on July 21, 2019, authorities searched the defendants’ vehicle and discovered approximately 100 grams of methamphetamine and an RG 14, .22 caliber revolver.
**Defendants Steven Ochoa, Amor Zuniga and Heraclio Carreon were already in custody prior to today.The second investigation, conducted by TXDPS, FBI, DEA and HSI, resulted in seven (7) arrests today stemming from a single federal grand jury indictment unsealed today in Waco.
GERMAN ZARZOZA MORENO, et al. INDICTMENT – W19cr259
Today, authorities arrested seven (7) individuals charged in this indictment. They are:
Name, Age, Residence
German Zarzoza Moreno, 33, Temple, TX
Raul Montes, 47, Galena Park, TX
Jaime Estrada, Jr., 20, Temple
Jesus Alberto Garcia Zuniga, 25, Temple
Erik Enrique Hernandez, 32, Temple
Luis Carlos Jimenez, Jr., 26, Temple
Ezequiel Orozco, 29, Temple
This indictment charges Moreno, Montes and Estrada with one count of conspiracy to possess with intent to distribute more than 500 grams of cocaine and one count of conspiracy to possess with intent to distribute more than 500 grams of methamphetamine. Zuniga and Hernandez are only charged in the cocaine conspiracy count. Jimenez and Orozco are only charged in the methamphetamine conspiracy count. Those charged in the methamphetamine conspiracy face between ten years and life in federal prison upon conviction. Those charged in the cocaine conspiracy face between five and 40 years in federal prison. Under the direction of Moreno and Montes, the defendants allegedly distributed cocaine and methamphetamine in the Temple area since May 2018.
In regards to this investigation, authorities conducted a coordinated search/arrest operation today in the Temple and Houston areas. Today’s operation resulted in the seizure of approximately 2,853 grams of cocaine, 8.4 grams of ecstasy, and 31.9 grams of marijuana. Authorities also seized a .45 caliber Smith and Wesson pistol, a false battery compartment, a kilogram press, and several other items indicative of distribution and transportation of cocaine and methamphetamine.
The U.S. Marshals Service provided valuable assistance with today’s arrests. All of those arrested today remain in federal custody. Detention hearings are expected to occur next week before U.S. Magistrate Judge Jeffrey Manske in Waco.
Assistant U.S. Attorneys Christopher Blanton and Stephanie Smith-Burris are prosecuting these cases 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.
- XAVIER ANGELO HERNANDEZ, et al. INDICTMENT – W19cr258
Multiple Austin Area Drug Trafficking Arrests in March 2018 Result in Lengthy Federal Prison TermsRead the Press Release
In Austin yesterday, a federal judge sentenced the last of 35 defendants convicted of his role in a Austin-based drug trafficking conspiracy, announced U.S. Attorney John F. Bash; Drug Enforcement Administration (DEA) Special Agent in Charge Will Glaspy, Houston Division; Federal Bureau of Investigation (FBI) Special Agent in Charge Christopher Combs, San Antonio Division; IRS-Criminal Investigation Special Agent in Charge Richard D. Goss, Houston Field Office; Texas Department of Safety Director Steven McCraw; Austin Police Chief Brian Manley, Hays County Sheriff Gary Cutler; and, Cedar Park Police Chief Sean Mannix.
U.S. District Judge Robert Pitman sentenced 41–year-old Marquis Collins of Austin to 90 months in federal prison followed by five years of supervised release. Sentences for the other 34 defendants ranged from time served to 280 months (ringleader Luis Villagrana-Martinez) in federal prison.
A federal grand jury indictment unsealed in March 2018 charged the 35 defendants with conspiracy to possess with intent to distribute a controlled substance, namely methamphetamine, cocaine and/or heroin. All of the defendants eventually pleaded guilty to the drug conspiracy charge.
During the course of the conspiracy, Luis Villagrana-Martinez, age 33 of Leander, TX, and Carlos Garcia-Duarte, age 41 of Dale, TX (135 months imprisonment), were leaders of the distribution cells operating in Austin. Members of this organization utilized a local mechanic’s shop to unload, distribute, and ship drugs to sales and distribution points in Texas, Oklahoma, Georgia, Minnesota, Arkansas, Tennessee, and Mississippi.
During this investigation, law enforcement agents in several jurisdictions seized a combined total of approximately 148 pounds of crystal methamphetamine, some 56 gallons of liquid methamphetamine, 62 pounds of cocaine, 13 pounds of heroin, and approximately $400,000 in U.S. currency.
“The sheer number of defendants arrested in this case, across so many states and jurisdictions, proves once again that agencies working together are a tremendous force multiplier; achieving a level of success no one agency, office, or department could hope to attain alone’” stated DEA Special Agent in Charge Glaspy. “DEA will continue to work closely with our counterparts whenever – and wherever – necessary to protect our communities.”
The DEA Austin Resident Office, FBI Austin, IRS-Criminal Investigation, Texas Department of Public Safety, Austin Police Department, Hays County Sheriff’s Office, and Cedar Park Police Department investigated this case.
Agencies providing assistance during this investigation include: Round Rock Police Department; Georgetown Police Department; Lakeway Police Department; Williamson County Sheriff’s Office; Travis County Sheriff’s Office; Rockwall Police Department; Bastrop County Sheriff’s Office; Travis County District Attorney’s Office; Bell County District Attorney’s Office; Williamson County District Attorney’s Office, Bastrop County District Attorney’s Office, DEA (McAllen, Milwaukee Field Office, Brownsville, Eagle Pass, Dallas Division, Houston Division and Houston SRT); FBI (McAllen); Homeland Security Investigations (Austin); U.S. Border Patrol (Del Rio Sector) and U.S. Customs and Border Protection. Assistant U.S. Attorneys Dan Guess and Matt Harding prosecuted this case (A18cr91) on behalf of the Government.
Justice Department Reaches Settlement Agreement with Physicians and El Paso Physicians Group 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 Dr. Robert Moreno, Cheryl Moreno, William “Bill” Collins, Accutrack Medical Claims Service, LLC, and El Paso Integrated Physicians Group, P.A. paid $2,929,162 to settle allegations that they defrauded the U.S. and the State of Texas through their Medicare, Medicaid and other federal healthcare programs.
“Providers who line their pockets by over-billing for medical care increase medical costs for all of us and drain critical funds from Medicare and other government health programs,” said U.S. Attorney Bash. “The Government will continue to hold accountable medical professionals who undermine our healthcare system through fraudulent over-billing for care.”
On October 30, 2013, Sergio Garcia filed a qui tam action in the U.S. District Court for the Western District of Texas, alleging that Dr. Robert Moreno, Cheryl Moreno, William “Bill” Collins, Accutrack Medical Claims Service, LLC, and El Paso Integrated Physicians Group, P.A. double-billed and over-billed government payors for Remicade (Infiximab), an infusion drug sold in single-use vials. Relator alleged that the Group pooled Remicade from partially used vials and used it in other patients, resulting in double-billing for the split vial, and also that it billed for Remicade not used or that was diluted. The complaint further alleged that the Group billed for drugs illegally imported from Canada and other foreign countries.
Multiple federal and state agencies, including the FBI, U.S. Health and Human Services-Office of Inspector General, Department of Defense-Defense Health Agency and the Texas Medicaid Fraud Control Unit, conducted an extensive investigation into the allegations. Based on the results of the investigation, the U.S., along with the State of Texas, pursued efforts to recover some of the federal and state funds that they allege, were illegally obtained by the defendants.
The lawsuit, United States ex rel., Sergio Garcia, v. Robert Moreno, M.D., et al., Civ. A. No. SA:13-CA-0992XR 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 Act permits the U.S. to intervene in such lawsuits, as the U.S. has done in this case.
The claims asserted against the defendants are allegations only; there has been no determination of liability.
Department of Justice Attorney Susan Strawn (formerly an Assistant U.S. Attorney in the Western District of Texas) and Assistant U.S. Attorney Eduardo R. Castillo represented the federal government in the civil lawsuit.
Jury Finds Midland Man Guilty of Attempted Online Enticement of a MinorRead the Press Release
In Midland yesterday, a federal jury convicted 37-year-old Midland resident Cole S. Crocker of attempted online enticement of a minor, announced U.S. Attorney John F. Bash, FBI Special Agent in Charge Emmerson Buie, Jr., El Paso Division, and Texas Department of Public Safety Director Steven McCraw.
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.
“Through the hard work of law enforcement and our Midland office, we have taken another child predator off the streets. Child abuse is a massive problem in our society, and we are fighting it with everything we’ve got,” stated U.S. Attorney Bash.
Crocker, who faces a mandatory minimum of ten years and up to life in federal prison, was placed into the custody of the U.S. Marshals Service following the verdict. Sentencing is scheduled for 9:30am on December 3, 2019, before U.S. District Judge David Counts 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.
17 Texas Syndicate Members and Associates Arrested Based on Federal Indictment Alleging Meth/Heroin Trafficking in and around AustinRead the Press Release
Federal, state and local authorities have arrested 17 members and associates of the Texas Syndicate in connection with a methamphetamine/heroin trafficking operation in central Texas announced U.S. Attorney John F. Bash, FBI Special Agent in Charge Christopher Combs, San Antonio Division, Austin Police Chief Brian Manley, Texas Department of Public Safety Director Steven McCraw, and Gonzales Police Chief Tim Crow.
A federal grand jury indictment, returned in Austin and unsealed yesterday, charges those arrested with conspiracy to distribute a controlled substance. The defendants, allegedly, conspired to distribute methamphetamine/heroin in Austin, San Marcos, Luling, Gonzales, New Braunfels, Hutto, Kenedy, Seguin, Bastrop and Tuscaloosa, AL, since January 2018. During this investigation, authorities seized over 100 kilograms of methamphetamine and multiple firearms attributed to this organization.
Defendants who are charged in this indictment include:
- Juan Carlos Castilleja, age 29 of New Braunfels, 500 grams or more of methamphetamine;
- Roman Gabriel Luna, age 34 of Austin, 500 grams or more of methamphetamine/one kilogram of heroin;
- *Julio Alvarez, a 40-year-old Mexican National residing in Austin, 500 grams or more of methamphetamine;
- *Osbellia Jimenez-Jaimes, age 33 of Austin, 50 grams or more of methamphetamine;
- Brandon Carrasco, age 21 of Kenedy, TX, 50 grams or more of methamphetamine;
- David Cantu, age 46 of Gonzales, 50 grams or more of methamphetamine;
- *Ian Accord, age 26 of Hutto, 50 grams or more of methamphetamine;
- John Vera, age 26 of Gonzales, 50 grams or more of methamphetamine;
- Josh Vera, age 26 of Gonzales, 50 grams or more of methamphetamine;
- Lisa Anzaldua, age 31 of Luling, 50 grams or more of methamphetamine;
- Noemi Medina, age 25 of Seguin, 50 grams or more of methamphetamine;
- Paul Villarreal, age 45 of Luling, 50 grams or more of methamphetamine;
- *Sean May, age 47 of Tuscaloosa, AL, 50 grams or more of methamphetamine/100 grams or more of heroin;
- Michael Armstead, age 47 of San Marcos, less than 50 grams of methamphetamine;
- Steven Klasing, age 37 of Austin, less than 50 grams of methamphetamine/less than 100 grams of heroin;
- Rafael Salas, age 38 of San Antonio, one kilogram or more of heroin; and,
- Pascual Salazar, age 36 of Austin, one kilogram or more of heroin.
*13 defendants were arrested yesterday. Alvarez, Jimenez-Jaimes, Accord, and May were already in custody prior to yesterday.Upon conviction of the drug trafficking charge: Castilleja, Luna, Salazar, Salas and Alvarez face between ten years and life in federal prison; Jimenez-Jaimes, Carrasco, Cantu, Accord, John Vera, Josh Vera, Anzaldua, Medina, Villarreal and May face between five and 40 years in federal prison; Armstead and Klasing face up to 20 years in federal prison based on their involvement, drug type and drug amount involved.
All of the defendants remain in federal custody. Detention hearings are expected to occur over the next two weeks in U.S. Magistrate Court in Austin for all defendants except May.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
This case resulted from an investigation conducted by the FBI Safe Streets Task Force, Austin Police Department, Texas Department of Public Safety and the Gonzales Police Department. Agencies assisting in making arrests include: Karnes County Sheriff’s Office, Guadalupe County Sheriff’s Office, Comal County Metro Narcotics Task Force, San Marcos Police Department, Hays County Narcotics Task Force and the San Antonio Division of the Drug Enforcement Administration. Assistant U.S. Attorneys Matt Harding and Dan Guess are prosecuting this case on behalf of the Government.
Treasurer Sentenced to Federal Prison for Embezzling Funds from the Medina Lake Betterment AssociationRead the Press Release
In San Antonio today, a federal judge sentenced former Treasurer Kenneth Edward Gilmore, 77 of Lakehills, TX, to 27 months in federal prison for stealing at least $177,000 from the Medina Lake Betterment Association (Medina), announced U.S. Attorney John F. Bash.
In addition to the prison term, U.S. District Judge Xavier Rodriguez ordered that Gilmore pay $177,000 in restitution and be placed on supervised release for a period of three years after completing his prison term.
On April 2, 2019, Gilmore pleaded guilty to one count of wire fraud. By pleading guilty, Gilmore admitted that beginning in 2008 until 2016, he devised a scheme to steal organization funds and use them for his own personal benefit.
“Gilmore lied to Medina board of directors, officers and supporters by providing false treasury reports, omitting material facts and concealing the charitable organization’s actual financial status,” stated U.S. Attorney Bash. “His criminal actions left the non-profit organization nearly bankrupt.”
The FBI and the Texas Department of Public Safety investigated this case. Assistant U.S. Attorneys William R. Harris and James K. Blankinship prosecuted this case on behalf of the Government.
Jury Finds San Antonio Man Guilty of Possession of Child PornographyRead the Press Release
In San Antonio today, a federal jury convicted 44-year-old Jeffrey Clinton Michalik of possession of child pornography, announced U.S. Attorney John F. Bash and Homeland Security Investigation (HSI) Special Agent in Charge Shane Folden, San Antonio Division.
Evidence presented at trial revealed that five images of child pornography were downloaded from a website in Switzerland using the defendant’s secure IP address assigned to his house. HSI agents executed a federal search warrant for child pornography at the defendant’s house. The defendant admitted viewing child pornography on a laptop computer and provided agents with consent to search that computer. The laptop computer contained over 2500 images and 112 videos depicting children engaged in sexually explicit conduct. The majority of the child pornography files depicted children under the age of 12, including children as young as three.
Michalik, who faces up to 20 years in federal prison, was placed into the custody of the U.S. Marshals Service following the verdict. Sentencing is scheduled for 9:00am on December 9, 2019, before Senior U.S. District Judge David A. Ezra.
HSI agents investigated this case. 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.
Austin Man Sentenced to Federal Prison for Sexual Exploitation of a MinorRead the Press Release
In Austin today, U.S. District Judge Robert Pitman sentenced 25–year–old Olin Dee Cubit, Jr., to 15 years in federal prison followed by ten years of supervised release for sexually exploiting a minor, announced U.S. Attorney John F. Bash and Austin Police Chief Brian Manley.
On April 2, 2019, Cubit pleaded guilty to one count of sex trafficking of a minor and one count of sexual exploitation of a minor for producing videos of a minor engaged in sexually explicit conduct. By pleading guilty, Cubit admitted that between January 15, 2018, and February 15, 2018, he and his co-defendant , 23-year-old Kaylan Nichole Hill of Austin, caused a minor to engage in repeated sexually explicit activity for Cubit’s own financial gain.
On July 26, 2019, Judge Pitman sentenced Hill to five years in federal prison followed by five years of supervised release for sex trafficking a minor and possession of child pornography.
“There is far too much child sexual abuse in our country. I am proud of the many successful prosecutions that our office has handled, such as this one. But I fear that as a society we are not taking this problem seriously enough,” stated U.S. Attorney Bash.
The Austin Police Department’s Human Trafficking Unit investigated this case. Assistant U.S. Attorney Grant Sparks prosecuted this case on behalf of the Government.
“I am proud of all the work done by the Austin Police Department’s Human Trafficking Unit,” said Chief Manley. The unit is grateful to the U.S. Attorney’s office for their efforts in this matter. A dangerous criminal has been removed from the community of Austin, and justice has been sought for the survivor of this heinous crime.”
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.
Austin Main Sentenced to Federal Prison for Felon in Possession and Fraud ConspiracyRead the Press Release
In Austin today, U.S. District Judge Lee Yeakel sentenced 28–year–old Austin resident Douglas Ryan Dahl to 51 months of imprisonment followed by three years of supervised release for being a felon in possession of a firearm and conspiring to commit mail and wire fraud using information obtained from stolen mail, announced U.S. Attorney John F. Bash and Inspector in Charge Adrian Gonzalez, U.S. Postal Inspection Service, Houston Division. Dahl also was ordered to pay $3,559.78 in restitution.
According to court documents, between about January 1, and December 25, 2018, Dahl conspired with others to obtain money and goods through fraudulent use of stolen and fraudulently obtained PII. Dahl obtained mail stolen by other individuals who pried open mail receptacles in the Austin, Texas area. Dahl was found with thousands of pieces of mail from hundreds of different victims. With a laptop and laser printer, Dahl used the personally identifying information taken from the victims of the stolen mail to create fake, temporary driver’s licenses bearing Dahl’s photograph. Dahl was found driving a 2014 Ford Taurus in December 2018 that he purchased after obtaining $25,000 in financing using stolen personal identification information. A temporary Texas Driver’s License was found in the car in the victim’s name but bearing Dahl’s photo. At the time, Dahl, a convicted felon, possessed a Glock Model 19 9mm handgun and a Remington 12 gauge shotgun.
The U. S. Secret Service, U. S. Postal Inspection Service, and Task Force Officers with the Austin Police Department conducted this investigation. Assistant U.S. Attorney Michael C. Galdo prosecuted this case on behalf of the Government.
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Five Fraudsters Indicted for Million Dollar Scheme Targeting Thousands of U.S. Servicemembers and VeteransRead the Press Release
WASHINGTON – A 14-count indictment has been unsealed today in San Antonio, Texas, charging five individuals with coordinating an identify-theft and fraud scheme targeting servicemembers and veterans. The charged defendants, who were based both in the Philippines and the United States, are alleged to have used the stolen personal identifying information (PII) of thousands of military members to access Department of Defense and Veterans Affairs benefits sites and steal millions of dollars.
The defendants, Robert Wayne Boling Jr., Fredrick Brown, Trorice Crawford, Allan Albert Kerr, and Jongmin Seok, were charged with multiple counts of conspiracy, wire fraud, and aggravated identify theft based on their alleged leading roles in the theft and exploitation of victim PII to conduct their fraud scheme. Boling (a U.S. citizen), Kerr (an Australian citizen), and Seok (a South Korean citizen) were arrested in the Philippines. Brown and Crawford, both U.S. citizens, were arrested in Las Vegas and San Diego respectively. Brown has been detained pending trial. Crawford is awaiting a detention hearing.
“The crimes charged today are reprehensible and will not be tolerated by the Department of Justice. These defendants are alleged to have illegally defrauded some of America’s most honorable citizens, our elderly and disabled veterans and servicemembers,” said Attorney General William P. Barr. “Through today’s action, the Department is honoring our pledge to target elder fraud schemes, especially those committed by foreign actors using sophisticated means, and to protect the veterans of our great country. I am proud of the quick and effective work done on this case by our Consumer Protection Branch and the U.S. Attorney’s Office for the Western District of Texas, with strong investigative support from the Departments of Defense and Veterans Affairs. We all will continue to work together to ensure that our veterans and servicemembers are protected from fraud.”
“Our message is pretty simple,” said U.S. Attorney Bash. “It doesn’t matter where on this planet you reside. If you target our veterans, we’re coming for you. Our veterans were willing to risk everything to protect this Nation from foreign threats. Now it’s our turn to seek justice for them.”
“The compromise of personally identifiable information can significantly harm our service members, veterans and their families and we will aggressively investigate such matters,” said Glenn A. Fine, Principal Deputy Inspector General, performing the duties of the Inspector General of the Department of Defense Office of Inspector General. “This indictment and the coordinated actions of our criminal investigative component, the Defense Criminal Investigative Service, demonstrate our commitment to swift action against those who attempt to enrich themselves through identify theft, money laundering, and conspiracy. The DoD OIG, working in partnership with the Department of Justice, will continue to identify, disrupt, and bring to justice those who threaten military members, retirees, and veterans through fraud and corruption.”
“VA is working with DoD to identify any instances of compromised VA benefits accounts,” said James Hutton, VA assistant secretary for public and intergovernmental affairs. “Just as importantly, VA has taken steps to protect Veterans’ data and are instituting additional protective measures.”
According to the indictment, the defendants’ identity-theft and fraud scheme began in 2014 when Brown, then a civilian employee at a U.S. Army installation, stole thousands of military members’ PII, including names, dates of birth, social security numbers, and Department of Defense identification numbers. Brown is alleged to have then provided the stolen information to Boling, who exploited the information in various ways together with his Philippines-based co-defendants Kerr and Seok.
As asserted in the indictment, Boling, Kerr, and Seok 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 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 unsealed indictment was announced today in San Antonio by U.S. Attorney John Bash of the Western District of Texas, Deputy Assistant Attorney General David Morrell, and Director Gustav Eyler of the Department of Justice’s Consumer Protection Branch.
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.
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 United States 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.
San Antonio Man Sentenced to 25 Years in Federal Prison for Production of Child PornographyRead the Press Release
In San Antonio today, 38-year-old Armando Robledo Gonzales was sentenced to 25 years in federal prison for production of child pornography, announced U.S. Attorney John F. Bash, FBI Special Agent in Charge Christopher Combs, San Antonio Division, and Bexar County Sheriff Javier Salazar.
In addition to the prison term, Senior U.S. District Judge David A. Ezra ordered that Gonzales be placed under supervised release for a period of ten years after completing his prison term.
On December 11, 2018, Gonzales pleaded guilty to the production charge. By pleading guilty, Gonzales admitted that in May 2017, he used the Internet to persuade a 13 year old to produce and send him visual images and videos of the minor engaging in sexually explicit conduct.
“We have a crisis of child sex abuse in this country and we must use every tool available to both federal and state law enforcement to address it. The efforts of the San Antonio Child Exploitation Task Force and my office demonstrate how we can effectively combine resources to apprehend and prosecute predators like Armando Gonzales,” stated U.S. Attorney Bash.
“Everyday, across the world, and in our community children are suffering in silence as we go about our daily activities,” said FBI SAC Combs. “The San Antonio Child Exploitation Task Force will relentlessly pursue every lead to rescue children who are being victimized, and bring their perpetrators to justice. We would encourage members of the public to help us protect children, who are among the most vulnerable in our community.”
The FBI San Antonio’s Child Exploitation Human Trafficking Task Force investigated this case. 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.
Former G.E.O. Guard in San Antonio Sentenced to Federal Prison for Attempting to Provide Contraband to PrisonersRead the Press Release
In San Antonio today, a federal judge sentenced 38-year-old former Central Texas Detention Facility – G.E.O. employee Jewel Roberto Jefferson to 40 months in federal prison for attempting to provide contraband to inmates inside the federal detention facility, announced U.S. Attorney John F. Bash, Drug Enforcement Administration (DEA) Special Agent in Charge Will Glaspy, Houston Division, and U.S. Marshal Susan Pamerleau.
In addition to the prison term, U.S. District Judge Xavier Rodriguez ordered that Jefferson be placed on supervised release for a period of three years after completing his prison term.
On September 11, 2018, Jefferson pleaded guilty to one count of attempting to provide contraband in prison. By pleading guilty, Jefferson admitted that he agreed to smuggle crystal methamphetamine and heroin into the facility and give it to a detainee in exchange for $1,000. On November 21, 2017, DEA agents arrested Jefferson immediately after he accepted payment but before he could smuggle in the contraband.
“Unfortunately, Mr. Jefferson now gets to spend time behind the same bars he once guarded. Crime and corruption have no place in our federal detention facilities, and DEA will continue to work with our partners to aggressively investigate and prosecute these cases,” said DEA SAC Glaspy.
The detainee, 40-year-old Brian Keith Gonzalez was sentenced to 63 months imprisonment on December 12, 2018, for his role in this scheme. He pleaded guilty to the same charge as Jefferson on May 10, 2018.
The DEA and the U.S. Marshals Service investigated this case. Assistant U.S. Attorney Sarah Wannarka prosecuting this case on behalf of the Government.
Odessa Man Pleads Guilty to Federal Child Pornography Production ChargeRead the Press Release
In Midland today, 62-year-old David King pleaded guilty to a federal child pornography production charge, announced U.S. Attorney John F. Bash, F.B.I. Special Agent in Charge Emmerson Buie, Jr., El Paso Division, and Ector County Sheriff Mike Griffis.
Appearing before U.S. Magistrate Judge Ronald Griffin, King admitted that from June 1, 2017, to May 1, 2018, he posed minors engaged in sexually explicit conduct and produced sexually explicit images of those minors using his cell phone. In June 2019, state authorities executed a search warrant in this case at King’s residence. King was arrested after authorities discovered child pornography on several electronic devices inside the residence.
King faces a mandatory minimum term of 15 years and up to 30 years in federal prison. He remains in federal custody. Sentencing, before U.S. District Judge David Counts in Midland, has yet to be scheduled.
This case was investigated by the F.B.I. together with the Ector County Sheriff’s Office and the Texas Department of Public Safety. Assistant U.S. Attorney Glenn Harwood 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.
New Braunfels Man Sentenced to 80 Months in Federal Prison for Possessing Obscene Visual Representations of the Sexual Abuse of ChildrenRead the Press Release
In San Antonio today, 20-year-old Benjamin Joost Bogard was sentenced to 80 months in federal prison for possession of obscene visual representations of the sexual abuse of children, announced U.S. Attorney John F. Bash and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
In addition to the prison term, Senior U.S. District Judge David A. Ezra ordered that Bogard be placed under supervised release for a period of three years after completing his prison term.
On February 2, 2019, federal authorities arrested Bogard. The investigation showed that Bogard possessed visual depictions of the sexual abuse of children. On May 1, 2019, Bogard pleaded guilty to one count of possession of obscene visual representations of the sexual abuse of children.
“We are grateful that the court recognized the serious threat the defendant poses to the safety of the public. Testimony and evidence presented in this case demonstrated the defendant’s fixation with committing barbaric and inhumane acts of violence against children and others. The FBI will continue to work with our law enforcement partners and use every investigative tool to protect the public from acts of violence. We remind the public of the important role they play in keeping our communities safe, by immediately reporting potential public safety threats to law enforcement,” stated FBI Special Agent in Charge Christopher Combs.
The FBI San Antonio’s Child Exploitation Human Trafficking Task Force investigated this case. 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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“Camry Cruzin’ Bandit” Sentenced to 15 Years in Federal Prison for Stealing Approximately $479k from Multiple BanksRead the Press Release
In San Antonio today, a federal judge sentenced 42-year-old Dennis Edward Stephen of San Antonio, to 15 years in federal prison for robbing multiple San Antonio banks and stealing approximately $479,000, announced U.S. Attorney John F. Bash, F.B.I. Special Agent in Charge Christopher Combs, San Antonio Division, and San Antonio Police Chief William McManus.
In addition to the prison term, U.S. District Judge Xavier Rodriguez ordered that Stephen pay $442,284 restitution and be placed on supervised release for a period of three years after completing his prison term.
“The financial industry is critical to American capitalism. Today’s 15-year sentence makes clear that it ultimately doesn’t pay to target banks,” stated U.S. Attorney Bash.
On November 8, 2018, Stephen pleaded guilty to one count of bank robbery. By pleading guilty, Stephen admitted responsibility for eight different bank robberies in San Antonio and the surrounding area between November 14, 2013, and July 23, 2018. The robberies include:
- November 14, 2013; April 17, 2014; and September 19, 2014 – Frost Bank on Vance Jackson Rd. – approximately $37,604; $36,280; and $133,000 stolen, respectively;
- November 24, 2015 – Broadway Bank in Helotes, TX – approximately $11,323 stolen;
- June 16, 2016 – Frost Bank on Wurzbach Rd. – approximately $56,077 stolen;
- November 4, 2016; July 5, 2017; and July 23, 2018 – Frost Bank on N. Loop 1604 – approximately $67,000; $101,000; and $36,561 stolen, respectively.
According to court records, authorities dubbed Stephen the “Camry Cruzin’ Bandit” because he drove a Toyota Camry during his scheme and often wore the same attire while committing the robberies: blue jeans, a denim long sleeve button down shirt, a white t-shirt and a UTSA Roadrunners baseball cap covering his head, sunglasses and a surgical mask covering his face, and rubber surgical gloves covering his hands.
Authorities arrested Stephen on July 23, 2018, following the Frost Bank robbery. They were also able to recover the $36,561 he stole during that robbery. He has since remained in federal custody.
The F.B.I. together with the San Antonio Police Department investigated this case. Assistant U.S. Attorney Sarah Wannarka prosecuted this case on behalf of the Government.
Three Charged in Del Rio with Trafficking a Boy Recovered in San AntonioRead the Press Release
In Del Rio this morning, federal authorities filed two criminal complaints charging three individuals for their roles in a human trafficking scheme involving a male child, announced U.S. Attorney John F. Bash and Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden.
Elida Kassandra Moreno, a 26-year-old American citizen residing in Piedras Negras, Mexico, is charge by complaint with bringing an illegal alien into the U.S. for profit and false statement to a federal agent. Moreno, Victor Manuel Monsivais, age 65 of San Antonio, and Nery Uriostegui Dominguez, a 26-year-old resident of Mexico, are charged in a separate complaint with conspiracy to transport an illegal alien.
According to the complaints, Zavala County Sheriff’s deputies, acting on law enforcement information they received and a request for assistance, executed a traffic stop yesterday in Batesville, TX, on a vehicle occupied by Moreno. Moreno was taken to the HSI office in Eagle Pass for questioning. While being questioned, Moreno told investigators she was approached by a friend’s neighbor in Piedras Negras to transport a boy to his family in San Antonio while using her own son’s birth certificate in exchange for $1,700. Moreno and the child crossed into the U.S. through Eagle Pass, rented a hotel room in Eagle Pass, then took a shuttle van the next day to San Antonio.
While in San Antonio, Moreno claims the friend’s neighbor told her to meet Uriostegui at Santa Rosa Park, collect $2,500 from him and deliver the child. Subsequently, Moreno said her friend’s neighbor told her not to hand over the child and a struggle between Moreno and Uriostegui ensued. SAPD officers arrived at the scene and took Uriostegui into custody. Moreno subsequently, at her friend’s neighbor’s bidding, met her father, Monsivais, at a truck stop on I-35 South in San Antonio and delivered the child to him.
Last night, HSI agents received information that Monsivais and the child would soon be at a location near Military Dr. and Goliad in San Antonio. When Monsivais arrived, HSI agents arrested him and took custody of the child.
Upon conviction, the defendants face up to ten years in federal prison and a maximum $250,000 fine on the conspiracy charge. Moreno also faces up to ten years in federal prison for bringing an illegal alien into the U.S. for profit and up to five years in federal prison for making a false statement to a federal official upon conviction.
This continuing investigation is being conducted by HSI together with the San Antonio Police Department. Assistant U.S. Attorney Joshua Banister is prosecuting this case on behalf of the Government.
It is important to note that a complaint 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.
Serial Law Enforcement Impersonator Sentenced to Ten Years for Fraud and Firearms OffensesRead the Press Release
In Austin today, a federal judge sentenced Modesto Gonzalez, III, to ten years in federal prison for defrauding numerous individuals out of more than of $300,000 by impersonating a Drug Enforcement Administration (DEA) Special Agent, announced U.S. Attorney John F. Bash and DEA Special Agent in Charge Will Glaspy, Houston Division.
In addition to the prison term, U.S. District Judge Lee Yeakel ordered that Gonzalez pay total restitution to his victims in the amount of approximately $307,000; and, be placed on supervised release for a period of three years after completing his prison term.
Court documents showed that 47-year-old Gonzalez of Caldwell County, TX, falsely told illegal aliens that he was a DEA agent and that he could assist them in obtaining immigration status in the U.S. Court filings indicate that Gonzalez victimized numerous individuals in the Austin area, as well as a group of approximately 20 individuals from the Chicago, IL, area. The illegal aliens paid Gonzalez thousands of dollars each.
Gonzalez also falsely told U.S. citizens and others lawfully present in the U.S. that he would sell them property seized by the DEA, including earth-moving equipment. Gonzalez received tens of thousands of dollars based on those fraudulent statements.
In fact, Gonzalez was not a DEA agent, had no ability to provide immigration assistance, and had no ability to sell DEA-seized equipment. Court records also showed that Gonzalez has previously been convicted twice in federal court for impersonating law enforcement, and once in state court for impersonation-based theft.
Numerous victims of Gonzalez’s fraud stated to the Court at sentencing that Gonzalez told them that they and their children would be deported if they did not pay Gonzalez thousands of dollars each. These victims also told the Court that Gonzalez later charged them for “taxes” that Gonzalez said they had to pay him.
“This prosecution is an example of how we seek justice for all victims of crime, including migrants who are in the country illegally. No one deserves to be defrauded,” stated U.S. Attorney Bash.
On March 21, 2019, Gonzalez pleaded guilty to one count of wire fraud and one count of felon in possession of a firearm. Judge Yeakel sentenced Gonzalez to ten years imprisonment on the wire fraud charge and five years imprisonment on the gun charge to run concurrently. Judge Yeakel also ordered Gonzalez to forfeit three firearms that were recovered from his home during the execution of a search warrant in January 2018. Gonzalez has remained in custody since being arrested during the search warrant execution.
DEA agents investigated this case with assistance from Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) agents. The Caldwell County Sheriff’s Office also provided assistance during execution of the search warrant. Assistant U.S. Attorneys Alan Buie, Gabriel Cohen, and Michael Galdo prosecuted this case on behalf of the Government.
Jury Convicts San Antonio East Side Gang Member on Federal Drug and Firearms ChargesRead the Press Release
Marcus Phillips, a 32-year-old member of the East Terrace Gangsters, faces federal prison time after a jury yesterday afternoon found him guilty of drug and firearms charges, announced U.S. Attorney John Bash.
A federal jury in San Antonio convicted Phillips of one count of possession with intent to distribute more than 28 grams of “crack” cocaine, one count of felon in possession of a firearm, and one count of possession of a firearm in furtherance of a drug trafficking crime. The jury acquitted Phillips of possession with intent to distribute “powder” cocaine.
Evidence at trial revealed that in October 2017, Phillips was operating a stash-type house on the east side of San Antonio. The San Antonio Police Department obtained a search warrant and, upon execution, found nearly one-half kilogram of cocaine--100 grams of which had already been converted into “crack” cocaine; all the tools necessary to convert the powder cocaine into “crack” cocaine were located on the kitchen counter. SAPD also found two assault-style pistols each loaded with 30-round magazines and a bolt-action rifle inside the house along with $1,064 in U.S. Currency.
This warrant occurred during a time of escalating gang violence on the east side of San Antonio.
Phillips, who remains in federal custody, faces a minimum mandatory ten years and up to life in federal prison. Sentencing is scheduled for 10:00am on October 24, 2019, before Chief U.S. District Judge Orlando Garcia in San Antonio.
The San Antonio Police Department investigated this case with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the U.S. Drug Enforcement Administration (DEA).
Two Men Sentenced to Lengthy Federal Prison Terms for Child Exploitation OffensesRead the Press Release
In unrelated cases, a federal judge in Midland sentenced Christopher David Mayhall, 42 of Dublin, TX, and James Vernon Foster, 57 of Abilene, TX, to 20 years and 15 years in federal prison, respectively, for child exploitation offenses, announced U.S. Attorney John F. Bash and FBI Special Agent in Charge Emmerson Buie, Jr., El Paso Division.
On July 18, 2019, U.S. District Judge David Counts sentenced Foster to 15 years in federal prison followed by ten years of supervised release. Judge Counts also ordered that Foster pay a $5,000 assessment under the Justice for Victims of Trafficking Act.
In February of 2019, an FBI agent acting in an undercover capacity began chatting online with Foster. The undercover agent indicated that he had access to two minor children, and Foster expressed a sexual interest in the children. Throughout the next few weeks, the conversations between the Agent and Foster became increasingly sexual in nature, and eventually a meet-up was scheduled. On March 21, 2019, Foster arrived in Midland for the purported meeting, expecting to have sexual relations with the children and was arrested by federal agents. Foster pleaded guilty to the charge of attempted enticement of a minor on May 14, 2019.
On July 11, 2019, Judge Counts sentenced Mayhall to 20 years in federal prison followed by ten years of supervised release.
In November of 2018, an FBI agent acting in the same undercover capacity began chatting online with Mayhall. Mayhall also expressed a sexual interest in the children. Throughout the next few weeks, the conversations between the agent and Mayhall became increasingly sexual in nature, and eventually Mayhall asked the agent to take nude photographs of the children and send them to him. Additionally, Mayhall sent the agent a video of a young child being sexually abused. In January 2019, Mayhall was charged with one count of attempted production of child pornography and one count of distribution of child pornography. He pleaded guilty to the attempted production charge on May 15, 2019.
FBI agents in Midland conducted this investigation. Assistant U.S. Attorney Shane A. Chriesman prosecuted these cases 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.
Midland Man Pleads Guilty to Federal Drug and Firearm Charges in Connection with the Murder of Two Midlanders in July 2015Read the Press Release
Ryan David Green, age 27 of Midland, faces up to life in federal prison time after pleading guilty this week to firearm and drug trafficking charges in connection with the murder of two Midland residents in July 2015, announced U.S. Attorney John F. Bash, Midland Police Chief Seth Herman and DEA Special Agent in Charge Kyle Williamson, El Paso Division.
Appearing before U.S. District Judge David Counts on Wednesday, Green pleaded guilty to one count of conspiracy to possess with intent to distribute methamphetamine; one count of discharging a firearm in furtherance of a drug trafficking crime; and, one count of murder resulting from the discharge of a firearm during and in relation to a drug trafficking crime.
By pleading guilty, Green admitted that on July 17, 2015, he and his co-defendants—Sean Blake Jobe and Trace Ryan Roland—conspired to murder a Midland man because of drug money the man owed to Roland.
According to court records, in the early morning hours of July 17, 2015, Green and Jobe went to a home in Midland and shot and killed the man and his girlfriend, who were living in a shed behind the home. Then they set fire to the shed and burned the victims beyond recognition.
Earlier this year, both Jobe and Roland pleaded guilty to the same three federal charges. All of the defendants remain in federal custody. Sentencing for all three defendants is scheduled for October 10, 2019, before Judge Counts in Midland.
The Midland Police Department and the Drug Enforcement Administration investigated this case. Assistant U.S. Attorneys Brandi Young and Glenn Harwood are prosecuting this case on behalf of the Government.
Federal Indictment Charges Lakeway Man with Production, Distribution and Possession of Child PornographyRead the Press Release
A 25–year-old Lakeway, TX, man faces federal production, distribution and possession of child pornography charges, announced U.S. Attorney John F. Bash, FBI Special Agent in Charge Christopher Combs, San Antonio Division.
A 52-count federal indictment returned earlier this month and unsealed yesterday, charges Luann Fabric Campos Leao Hida (aka “Luann Hida,” “Luann Leao,” and “LOTR”) with 24 counts of production of child pornography, 27 counts of distribution of child pornography and one count of possession of child pornography.
According to the indictment, from October 2014 to July 2018, Hida allegedly produced images and videos depicting 15 children engaged in sexually explicit activities.
Each production charge calls for a minimum of 15 years in federal prison upon conviction. Each distribution charge calls for a minimum of five years in federal prison upon conviction. Possession of child pornography calls for up to ten years in federal prison upon conviction. Hida remains in federal custody following his initial appearance yesterday in federal court in Austin.
The FBI is seeking the public’s assistance in identifying other potential victims of Luann Hida, who is also known by his screen name “The LOTR” or "TXLOTR". If you believe your child or other children may have been in contact with Luann Hida, please contact the Austin FBI via email at [email protected]. You can also complete a secure, confidential, online questionnaire, and obtain additional information on the FBI's webpage www.fbi.gov/sanantonio. The FBI is legally mandated to identify victims of federal crimes it investigates and provide these victims with information, assistance services and resources.
The FBI together with the Lakeway Police Department, Hays County Sheriff’s Office, Bee Cave Police Department, Austin Police Department and the Travis County Sheriff’s Office are investigating this case. We also thank the Center for Child Protection, Travis County, for its assistance. Assistant U.S. Attorneys G. Karthik Srinivasan and Keith M. Henneke are prosecuting the 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.
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.
Statement by U.S. Attorney John F. Bash Re: Current E.P.I.S.D. LitigationRead the Press Release
In the interest of justice, and to bring finality to the lengthy and complex litigation involving the prosecution of certain El Paso Independent School District administrators and employees, the remaining two defendants awaiting trial under cause number EP16cr693—James Anderson and John Tanner—have entered into pre-trial diversion agreements with the government. Once Mr. Anderson and Mr. Tanner successfully complete the terms and conditions of their pre-trial diversion programs, the charges against them will be dismissed. As part of their agreements, Mr. Anderson and Mr. Tanner have accepted responsibility for their behavior.
To ensure a fair and equitable outcome for all defendants in the EP16cr693 indictment, our office has also filed joint motions with counsel for co-defendants Damon Murphy, Maria Flores, and Vanessa Foreman, requesting the District Court to approve the withdrawal of their previously entered guilty pleas so that they will each receive a similar disposition. Now that the District Court has granted the motions, Mr. Murphy, Ms. Flores, and Ms. Foreman will enter into deferred prosecution agreements with the government in which the charges against them will ultimately be dismissed upon the successful completion of required terms and conditions. As a part of their deferred prosecution agreements, Mr. Murphy, Ms. Flores, and Ms. Foreman have all admitted to engaging in the conduct set forth in the factual summaries attached to their agreements.
The pre-trial diversion and deferred prosecution agreements entered into in this case were accepted by all parties—the defendants and our office—as a just and appropriate resolution to the matter.
Jury Convicts San Antonio Man on Federal Child Pornography and Obscenity ChargesRead the Press Release
Reynaldo Salinas, age 27 of San Antonio, faces federal prison time after a jury this afternoon found him guilty of attempted enticement of a minor and attempted transfer of obscene material to a minor, announced U.S. Attorney John F. Bash.
A federal jury in San Antonio convicted Salinas on both charges. Evidence presented during the four–day trial revealed that on September 27, 2017, Salinas used a mobile messaging application in an attempt to entice a female he believed was a 14-year-old dependent living on Ft. Sam Houston into engaging in sexual activity. Salinas also transferred a sexually explicit photograph of himself to the individual he believed was a minor. In reality, the individual Salinas believed to be a child was an undercover agent for the Air Force Office of Special Investigations. On October 20, 2017, Salinas, a non-active member of the Texas Army National Guard who had privileged access to military installations, showed up at a pre-arranged location on Lackland Air Force Base to meet the 14-year-old for sex. Agents were there waiting for him and arrested him.
Salinas faces mandatory ten years and up to life in federal prison for the enticement charge and up to ten years in federal prison for the obscene material charge. Salinas remains in federal custody pending sentencing, which is scheduled for September 30, 2019, before Senior U.S. District Judge David A. Ezra.
U.S. Air Force Office of Special Investigations agents investigated this case. Assistant U.S. Attorneys Bettina Richardson, Eric Yuen and Antonio Franco, Jr., are 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.
San Antonio Man Sentenced to 76 Months in Federal Prison for Wire Fraud and Tax EvasionRead the Press Release
In San Antonio today, a federal judge sentenced 55-year-old Ryan Glenn Martinez to 76 months in federal prison for embezzling over $800,000 from his employer and his failure to pay the IRS over $300,000, announced U.S. Attorney John F. Bash and IRS-Criminal Investigation Special Agent in Charge Richard D. Goss, Houston Field Office.
In addition to the prison term, Senior U.S. District Judge Fred Biery ordered that Martinez pay $813,822.91 in restitution to his fraud victims as well as $305,247 in restitution to the IRS for the tax offense.
On October 3, 2018, Martinez pleaded guilty to one count of wire fraud and one count of making and filing a false income tax return. According to court documents, from January 2012 until May 2014, the defendant was the Controller of San Antonio company called Southern Folger Detention Equipment Company, LLC (a subsidiary of Phelps Tointon, Inc.) that manufactured and marketed detention equipment and electronics for correctional facilities. By pleading guilty, Martinez admitted that he embezzled funds from Southern Folger by stealing checks issued in payment of Southern Folger accounts; stealing checks and money orders from customer payments of Southern Folger products; stealing checks issued by health care insurers to Southern Folger; and, submitting fraudulent vendor invoices to Southern Folger for payment on scrap material purchases, then pocketing the Southern-Folger-paid-money. Martinez further admitted to making false and fraudulent entries in the books of Southern Folger and Phelps Tointon to cover up his scheme. Following his guilty plea, Martinez was remanded to the custody of the U.S. Marshals Service. He has since remained in federal custody.
Martinez also admitted that he underreported to the IRS his income and income tax due for calendar years 2010, 2011, 2012, 2013, and 2014.
IRS-Criminal Investigation special agents investigated this case. Assistant U.S. Attorney William F. Lewis, Jr., prosecuted this case on behalf of the Government.
Federal Jury Convicts San Antonio Businessman on Health Care Fraud ChargesRead the Press Release
In San Antonio this afternoon, a federal jury returned a guilty verdict against Rafael Enrique Rodriguez for engaging in health care fraud, announced Special Agent in Charge Christopher Cave of the United States Postal Service Office and United States Attorney John F. Bash.
Rodriguez, age 40, of San Antonio, was convicted 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, Utah.
Evidence at trial demonstrated that between October 22, 2012 and December 14, 2016, Rodriguez devised a scheme to defraud the Federal Employees Compensation Act program, a federal health care benefit program that provides 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 them. 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 fraudulently billed the program $8,413,103.14 for these services for which he was paid over $6,300,000.
“The guilty verdict issued today is a testament to the thorough investigation conducted by our agents which uncovered an elaborate scheme to exploit Federal benefits programs for personal gain,” said Special Agent in Charge Christopher Cave of the U.S. Postal Service Office of Inspector General Southern Area Field Office. “The USPS-OIG, along with our law enforcement partners, will continue to vigorously investigate these types of cases in order to deter and stop medical providers and beneficiaries from engaging in these fraud schemes.”
Rodriguez faces up to 10 years in federal prison for the health care fraud convictions, up to 20 years in federal prison on the wire fraud convictions, and up to two years in federal prison for the aggravated identity theft conviction. He remains on bond pending sentencing, which is scheduled for September 23, 2019 before United States District Judge David A. Ezra.
Special Agents with the Postal Inspector OIG, Veterans Administration OIG, and Department of Labor OIG investigated this case. Assistant United States Attorney Gregory J. Surovic prosecuted this case on behalf of the Government.
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Richard L. Durbin, Jr. Recognized by Deputy Attorney General with Lifetime Achievement AwardRead the Press Release
WASHINGTON – Richard L. Durbin, Jr., Senior Litigation Counsel of the U.S. Attorney’s Office in the Western District of Texas, was recognized by Deputy Attorney General Jeffrey Rosen and Executive Office for U.S. Attorneys (EOUSA) Director James Crowell, IV at the 35th Director’s Awards Ceremony today in Washington D.C.
The Western District of Texas was one of 31 districts represented at the ceremony, which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building.
Deputy Attorney General Rosen told the awardees, “Today’s honorees have earned the esteem of their colleagues. But most importantly, you have earned the gratitude of your fellow citizens — whose communities you have made safer, whose lives you have improved, and whose trust you have rewarded.”
EOUSA Director Crowell said, “The Department of Justice is in truth a deployed force. Your work isn’t easy, but it is vital to the functioning and enduring nature of our democracy. As federal prosecutors, we are held to a higher standard, a standard that requires us to ensure that we uphold the rule of law and the fundamental rules of fairness in every trial, every settlement, every plea, and every legal argument in which we are involved.”
Mr. Durbin is recognized for his lifetime of incredible service to the United States Attorney’s Office for the Western District of Texas. Since Mr. Durbin first joined as an Assistant United States Attorney 35 years ago, he has served as the Chief of the Appellate Section, the Chief of the Criminal Division, First Assistant United States Attorney, and United States Attorney. In his three decades as a supervisor, Mr. Durbin has overseen tremendous expansion of the office and has provided invaluable guidance and mentorship to generations of prosecutors. Mr. Durbin is considered a critical resource for the Department in areas such as immigration enforcement, the OCDETF program, discovery obligations, and personnel management. Indeed, Mr. Durbin is renowned throughout both the entire Department and Texas for his keen intelligence, broad experience, managerial expertise, wisdom, and kindness.
“Richard has dedicated his career to making all Texans safer. This award recognizes the magnitude of his contributions to Texas and to the United States,” stated United States Attorney John F. Bash.
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Participants in Hospital Development Project Resolve Alleged Liability for Improperly Obtaining Government-Insured LoanRead the Press Release
Pacific Medical Buildings LLC (PMB), PMB Lakeway LLC, RD Development Partners LLC, Lakeway Management LLC, J&L Rush Family Partnership LP, Jeff Rush, and Brad Daniel have agreed to pay the United States $1.1 million to resolve allegations that they violated the False Claims Act by improperly helping to obtain a loan insured by the Federal Housing Administration (FHA) and receiving impermissible distributions of project funds for the development of Lakeway Regional Medical Center in Lakeway, Texas, the Department of Justice today announced.
“Individuals and entities that benefit from FHA insurance must follow the requirements intended to safeguard this important program,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “We will continue to hold responsible those who knowingly violate these requirements and waste critical program funds.”
“This settlement reflects our commitment to safeguard the integrity of the FHA loan program,” stated U.S. Attorney John F. Bash, Western District of Texas.
The FHA, part of the U.S. Department of Housing and Urban Development (HUD), insures loans used to build hospitals in underserved areas. The settling parties, along with several other individuals and entities, were involved in efforts to develop a hospital using an FHA-insured loan. The settlement today resolves allegations that the settling parties participated in a scheme to improperly obtain the FHA-insured loan by delaying refunds to investors who had cancelled their investments to make it appear as if the project satisfied mortgage covenants regarding the cash on hand required to close the loan. The settlement also resolves allegations that the settling parties received impermissible distributions of project funds.
“It is deeply disconcerting when industry professionals, who have fiduciary responsibilities and are expected to act as honest brokers, exploit federal programs created to aid legitimate medical facilities,” said Robert Kwalwasser, Acting Assistant Inspector General for Investigation, HUD Office of Inspector General. “This settlement demonstrates our continuing resolve, and should serve as a warning, that we will pursue those engaged in behavior that undermines federal insurance programs.”
The settlement was the result of a joint investigation conducted by HUD, the HUD Office of Inspector General, the Civil Division, and the U.S. Attorney’s Office for the Western District of Texas. The claims asserted against the settling parties are allegations only, and there has been no determination of liability.
Carrizo Springs Doctor and Office Manager Arrested on Federal Drug, Health Care Fraud and Aggravated Identity Theft ChargesRead the Press Release
A Carrizo Springs doctor with multiple offices throughout the Southwest Texas border area and his office manager face federal charges in connection with alleged illegal drug distribution, Health Care Fraud, and aggravated identity theft scheme, 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.
A 20-count federal grand jury indictment--returned on Wednesday in Del Rio and unsealed today by U.S. District Judge Alia Moses--charges Dr. Alfonso Luevano, age 50, with one count of conspiracy to distribute a controlled substance, 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 50-year-old employee of Dr. Luevano and resident of Carrizo Springs, is charged in both conspiracy counts, the five Health Care Fraud counts, and the three aggravated identity theft counts.
As alleged in the indictment, 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 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. Moreno 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. Moreno 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.
Federal authorities arrested both defendants Thursday without incident. Both defendants had their initial appearances in federal court in Del Rio on Friday. U.S. Magistrate Judge Victor Garcia released the defendants on $50,000 unsecured bonds pending trial.
“A doctor who prescribes opioids without just cause is no different than a street corner drug dealer distributing narcotics,” stated DEA Special Agent in Charge Glaspy. “DEA will always pursue these ‘drug dealers in white coats’ who are fueling, our ongoing opioid crisis.”
Upon conviction, the 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.
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 Paul Harle 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.
Pecos Credit Union C.E.O. and Former State Employee Pleads Guilty to Financial Institution Fraud Conspiracy and Failure to File a Tax ReturnRead the Press Release
Today in San Antonio, Reeves County Teachers Credit Union Chief Executive Officer and former state of Texas employee James T. “Jimmy” Dutchover admitted to 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.
Appearing before U.S. Magistrate Judge Richard B. Farrer, Dutchover pleaded guilty to a Superseding Information charging him with one count of conspiracy to defraud Reeves County Teachers Credit Union 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.
According to papers filed in the case, Dutchover was the CEO of Reeves County Teachers Credit Union. He was also an employee of the State of Texas working for an elected official. Together Dutchover and the elected official conspired to use Dutchover’s position as CEO to obtain $10,000 from the credit union through a loan made in the name of a relative of Dutchover, which was actually for the benefit of the elected official. 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, willfully failed to make an income tax return to the IRS.
Dutchover faces up to five years in federal prison for the conspiracy charge and up to one year in federal prison for the tax charge. He remains on bond pending sentencing. A sentencing date has yet to be scheduled.
This case was investigated by the FBI’s Public Corruption Task Force consisting of investigators from the FBI and IRS–CI. Assistant U.S. Attorneys William R. Harris, Joseph E. Blackwell and Sean O’Connell are prosecuting this case for the Government.Waco Man Sentenced to Life in Federal Prison for Methamphetamine DistributionRead the Press Release
In Waco today, a federal judge sentenced 38-year-old methamphetamine distribution ringleader Daniel Louis Lopez to life in federal prison, announced United States Attorney John F. Bash; Drug Enforcement Administration Special Agent in Charge Will Glaspy, Houston Division; FBI Special Agent in Charge Christopher Combs; Waco Police Chief Ryan Holt; Killeen Police Chief Charles Kimble; McLennan County Sheriff Parnell McNamara; and, Texas Department of Public Safety Director Steven McCraw.
In addition to the prison term, U.S. District Judge Alan Albright ordered that Lopez pay a $1,000 fine.
Lopez was among 20 defendants charged by federal grand jury indictment in August 2018 with conspiracy to possess with intent to distribute methamphetamine. Authorities allege that since May 2017, these defendants were responsible for the distribution of large amounts of methamphetamine throughout the Waco and Central Texas areas. On January 19, 2019, Lopez pleaded guilty to the charge. To date, 19 have pleaded guilty to the conspiracy charge; seven defendants are still awaiting sentencing; the rest have been sentenced to federal prison terms ranging from seven years to life imprisonment.
The DEA, FBI, U.S. Marshals Service, Texas Department of Public Safety, Waco Police Department, Killeen Police Department and the McLennan County Sheriff’s Office investigated these cases. Assistant U.S. Attorneys Mark Frazier and Christopher Blanton are prosecuting this case on behalf of the Government.
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.
San Antonio Man Sentenced to 70 Months in Federal Prison on Child Pornography ChargesRead the Press Release
In San Antonio today, 40-year-old former Homeland Security Investigations agent Richard Nikolai Gratkowski was sentenced to 70 months in federal prison on child pornography charges, announced U.S. Attorney John F. Bash and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
In addition to the prison term, Senior U.S. District Judge David A. Ezra ordered that Gratkowski pay $35,000 restitution to seven victims, pay a $10,000 assessment under the Justice for Victims of Trafficking Act and be placed under supervised release for a period of ten years after completing his prison term.
On January 4, 2018, federal authorities arrested Gratkowski. The investigation showed that Gratkowski, after purchasing access to multiple child pornography websites using cryptocurrency, had received hundreds of videos of pre-pubescent children engaged in a variety of sexual acts. On December 19, 2018, Gratkowski pleaded guilty to the charges of receiving child pornography and accessing with intent to view child pornography.
The FBI San Antonio’s Child Exploitation Human Trafficking Task Force investigated this case along with special agents with the Department of Homeland Security—Office of Inspector General. 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.
High Ranking Sinaloa Cartel Member Extradited to the United StatesRead the Press Release
Jose Antonio Torres Marrufo (aka “Jaguar”) has been extradited from Mexico to face federal racketeering charges in the Western District of Texas, stated U.S. Attorney John F. Bash; Drug Enforcement Administration (DEA) Special Agent in Charge Kyle W. Williamson, El Paso Division; FBI Special Agent in Charge Emmerson Buie, Jr., El Paso Division; and, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Jeffrey C. Boshek, II, Dallas Division.
Torres Marrufo remains in federal custody awaiting his initial appearance in federal court tomorrow morning in El Paso.
“Through close and sustained cooperation with our partners in Mexico, we are bringing cartel leaders to justice,” said DEA Special Agent in Charge Williamson. “This extradition sends a message to those leaders that we will relentlessly pursue them, no matter where they are or how long it takes.”
“The FBI El Paso Division is pleased with Mexico's efforts to bring to justice a leader from one of the most violent criminal enterprises that has terrorized the El Paso and Juarez area,” said FBI Special Agent in Charge Buie. “The cooperation between our two countries' law enforcement agencies is a powerful force in disrupting the Sinaloa Cartel Organization's criminal activities that instill fear and threaten the safety of our citizens.”
“No one person, community or country should endure the brutality described in these charges,” stated ATF Special Agent in Charge Boshek. “The cooperation between U.S. and Mexican officials sends a clear message of our collaborative commitment to investigate and prosecute members of these criminal organizations.”
In April 2012, Torres Marrufo was charged in the same federal grand jury indictment as Joaquin Guzman Loera, aka “El Chapo,” Ismael Zambada Garcia aka “Mayo,” and 21 other individuals responsible for the operations and management of the Sinaloa Cartel (Cartel) charging them with violating the Racketeer Influenced and Corrupt Organizations (RICO) Act.
The fourteen-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 and Mario Iglesias-Villegas, under the leadership of Joaquin Guzman and Ismael Zambada, 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 Border Patrol at the Sierra Blanca checkpoint on August 5, 2009. After the kidnapping, the victim was taken to Juarez where Torres Marrufo interrogated him and ordered that he be killed. On September 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 Mario Iglesias-Villegas, under the leadership of Joaquin Guzman and Ismael Zambada, 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, NM. 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.
This investigation was conducted by the DEA, FBI and ATF together with U.S. Immigration and Customs Enforcement-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. The Department of Justice’s Office of International Affairs provided significant support in securing and coordinating Torres Marrufo’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.
Upon conviction, Marrufo faces up to life in federal prison.
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.
Three El Paso Men Sentenced to Federal Prison for Sex Trafficking SchemeRead the Press Release
In El Paso, a federal judge has sentenced three men for their roles in a sex trafficking scheme, announced U.S. Attorney John F. Bash and Homeland Security Investigations (HSI) Special Agent in Charge Jack P. Staton.
Yesterday afternoon, U.S. District Judge Kathleen Cardone sentenced 22–year-old Khalil S. Maxwell (aka “Korrupt,” “Khalil Zero Tolerance”) to 25 years in federal prison followed by ten years of supervised release. On May 16, 2019, Judge Cardone sentenced 28–year-old Daniel Chavez to ten years in federal prison followed by ten years of supervised release. On May 15, 2019, Judge Cardone sentenced 21–year-old Raymundo Nettles to nine years in federal prison followed by ten years of supervised release. Judge Cardone also ordered each defendant to pay a $5,000 special assessment under the Justice for Victims of Trafficking Act.
Khalil S. Maxwell led a sex trafficking ring in El Paso, Texas from March 11, 2015 through October 31, 2016. Maxwell used physical violence to intimidate and cause underage girls, ranging in age from 13 to 17, to engage in commercial sex acts for money. Maxwell enlisted co-defendants Daniel M. Chavez and Raymundo Nettles to rent hotel rooms and to drive the underage girls to hotels and other locations where the sex acts occurred.
On February 1, 2019, Maxwell pleaded guilty to one count of conspiracy to commit sex trafficking of children by force, fraud, or coercion and one substantive count of sex trafficking of children. In January 2019, Chavez and Nettles pleaded guilty to the conspiracy charge.
“Today the miscreants who inflicted violence on children to coerce them into selling sex were given long prison terms. While I am proud of our prosecutors and law-enforcement agents for delivering justice in this case, we need to do more as a society to prevent this kind of abuse in the first place,” stated U.S. Attorney Bash.
“These sentences assure that this heinous sexual predator and his accomplices will not prey on any more girls for a long, long time,” said HSI El Paso Special Agent in Charge Staton. “It also serves as a sobering warning to those engaged in the sex trafficking of minors: HSI will continue to work relentlessly with its law enforcement partners to identify these dangerous offenders and bring them to justice.”
HSI agents in El Paso conducted this investigation. Assistant U.S. Attorneys Patricia Acosta and Mallory Rasmussen 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.
Round Rock Man Sentenced to Life in Federal Prison for Kidnapping Two Sisters in December 2017 and Federal Sex Offenses Involving a MinorRead the Press Release
In Austin today, U.S. District Judge Lee Yeakel sentenced 45-year-old Terry Allen Miles to life in federal prison for kidnapping two minors and taking them to Colorado, announced United States Attorney John F. Bash, FBI Special Agent in Charge Christopher Combs, San Antonio Division, and Round Rock Police Chief Allen Banks.
“Today justice was delivered to Terry Miles for his despicable crimes against children. Unfortunately this is only one particularly high-profile example of the sort of abuse happening in every community across our country. It won’t stop until policymakers at all levels prioritize child safety,” said U.S. Attorney Bash.
On February 12, 2019, jurors found Miles guilty on two counts of kidnapping, one count of transporting a minor with intent to engage in sex with her, and one count of interstate travel with intent to engage in sex with a minor. Evidence presented during trial revealed on December 30, 2017, Round Rock (TX) Police (RRPD) officers conducted a welfare check at the residence of Tonya Ellen Bates because she had not shown up for work that day as expected. The officers subsequently discovered Bates’s body inside the residence. Bates was the only individual at the residence at the time of the welfare check and Bates’s 2017 Hyundai Accent was missing. Further investigation revealed that Miles, who had lived with Bates and her two young daughters, may have kidnapped the daughters, whose whereabouts were unknown.
Bates’ death was ruled a homicide by blunt force trauma. Testimony at trial indicated that Miles likely killed Bates by bludgeoning her on the head with a heavy flashlight. DNA evidence indicated that Bates’ blood was found on one of Miles’ sneakers.
RRPD officers obtained cell phone information on the children’s two phones. One of the phones was located in a heavily wooded area adjacent to a Wal-Mart store located in Round Rock. Surveillance video from the Wal-Mart showed what appeared to be Miles purchasing numerous camping-related items and then leaving the store in a vehicle appearing to match Bates’s vehicle. The vehicle and a cell phone belonging to one of the minors were subsequently traced heading to Colorado. Evidence from security cameras and phone records showed the route Miles took from Round Rock to southern Colorado.
On January 3, 2018, deputies with the Las Animas County Sheriff’s Office arrested Miles during a traffic stop near La Veta, Colorado. The two minors, ages 7 and 14, were found with Miles in the vehicle he took from Round Rock.
Testimony elicited during trial also revealed that Miles repeatedly engaged in sexual relations with the 14-year-old girl over a five-month period prior to being arrested. DNA evidence indicated that Miles was the source of semen found in the 14 year old’s underwear that she was wearing at the time she was found. Miles was also shown to be the source of semen found on a towel at the remote campsite where they hid out after arriving in Colorado.
“Today, a violent criminal has been sentenced and is off the streets, thanks to the extraordinary efforts of the agents, task force officers and analysts on the FBI Austin Child Exploitation Task Force, working with our law enforcement partners here in Texas and in other states as well,” said FBI Special Agent in Charge Christopher Combs. “Thankfully, in this case, the two child victims were recovered and are safe now. We are committed to preventing violent crimes against children and to bring those who harm them to justice.”
“Round Rock is a safer place with Terry Miles scheduled to serve a well-deserved, lengthy prison sentence. While it won’t reverse the harm done to these girls, it will allow them to continue the healing process without fear. This would not have been possible without the collaboration of the U.S Attorney’s Office, the FBI, the Round Rock Police Department, and other Local, State and Federal law enforcement agencies,” stated Round Rock Police Chief Banks.
The FBI and the Round Rock Police Department conducted this investigation. The U.S. Marshals Service – Lone Star Fugitive Task Force, Texas Rangers; Central Texas Violent Crimes Task Force; Williamson County (TX) District Attorney’s Office; United States Attorney’s Office – District of Colorado; New Mexico State Police Department; Las Animas County (CO) Sheriff’s Office; Southern Colorado Safe Streets Task Force; Colorado State Patrol; Trinidad (CO) Police Department; Colorado Bureau of Investigations; Huerfano County (CO) Sheriff’s Office; Archuletta County (CO) Sheriff’s Office; Pagosa Springs (CO) Police Department; Rio Grande County (CO) Sheriff’s Office; Federal Bureau of Investigation in Colorado; Durango (CO) Police Department; La Plata County (CO) Sheriff’s Office; Child Protective Services in Texas and Colorado; and, the National Center for Missing and Exploited Children assisted in this investigation. Assistant U.S. Attorneys Matthew Devlin and Michelle Fernald prosecuted this case on behalf of the Government.
Schertz Man Arrested, Charged with Pointing Laser at Aircraft Flying OverheadRead the Press Release
In San Antonio today, a federal indictment was unsealed charging 37–year-old Justin John Shorey of Schertz, TX, with aiming a laser pointer at an aircraft, announced U.S. Attorney John F. Bash, FBI Special Agent in Charge Christopher Combs and San Antonio Police Chief William McManus.
The indictment alleges that on February 17, 2019, Shorey knowingly aimed the beam of a laser pointer at a San Antonio Police Department helicopter and the flight path thereof. Federal authorities arrested Shorey without incident late Friday.
“Aiming a laser pointer at an aircraft is incredibly dangerous. We won’t hesitate to hold anyone who engages in that reprehensible behavior fully accountable,” stated U.S. Attorney Bash.
“The actions of this defendant was not just a safety concern for the officers in the aircraft, but it also put the public in significant danger. We are pleased that the defendant will be held accountable for his dangerous actions,” stated Chief McManus
Upon conviction, the defendant faces up to five years in federal prison and a maximum $250,000 fine.
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.
This indictment resulted from an investigation conducted by FBI agents together with the San Antonio Police Department. Assistant U.S. Attorneys Mark Roomberg and William R. Harris are prosecuting this case on behalf of the Government.
It is important to note that a 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.