Western District of Texas
Press releases recorded for this federal judicial district.
Killeen Husband and Wife Plead Guilty to Federal Child Exploitation ChargesRead the Press Release
United States Attorney John F. Bash, Secret Service Special Agent in Charge Paul Duran, and Texas State Attorney General Ken Paxton announced that 26-year-old Christopher Almaguer and his wife, 27-year-old Sarah Rashelle Almaguer, of Killeen pled guilty today in Waco, Texas, to one count of sexual exploitation of children and one count of production of child pornography. The Almaguers each face a mandatory minimum term of 15 years up to 30 years in federal prison on each count.
Appearing before United States Magistrate Judge Jeffrey C. Manske, the Almaguers admitted that in December 2017 they uploaded sexually explicit videos of themselves sexually assaulting children as young as eight months old. According to court records investigators compiled a list of approximately 25 potential minor child victims, ranging in age from infants to fourteen years of age, from the Central Texas area.
The Almaguers have remained in custody since their arrests by investigators with the Texas Office of Attorney General, Child Exploitation Unit, and special agents with the United States Secret Service in February 2018. Sentencing has been scheduled before United States District Judge Alan D. Albright for January 29, 2019.
This case was investigated by the Texas Office of the Attorney General, Criminal Investigations Division, Child Exploitation Unit, the United States Secret Service and the Killeen Police Department. Assistant United States Attorney Gregory S. Gloff is prosecuting this case on behalf of the Government.Tres Ex-Oficiales de Crystal City, Tejas Condenados a Prisión Federal por Esquema de SobornoRead the Press Release
Anunciaron el Abogado de los Estados Unidos John F. Bash y Christopher Combs, Agente Especial en cargo de la Oficina de Investigaciones Federales (FBI, por sus siglas en inglés) que hoy en Del Rio, la juez Alia Moses condenó a tres ex–oficiales de Crystal City en conexión con una esquema de soborno.
Juez Moses condenó al ex-Alcalde Interino Rogelio Mata, ex–Concejal de la Ciudad Roel Mata, y ex–Concejal de la Ciudad Gilbert Urrabazo a 33 meses, 21 meses, y 24 meses respectivamente. Juez Moses ordenó que los tres demandaos servirán tres años de supervisión después de servir su sentencia penal individualmente. Más, Juez Moses ordenó que los tres pagaran una multa de $2,000 y ordenó juicio de perdida de $11,291.73 en efectivo. El juicio de perdida representa la perdición de varios sobornos, cuales fueron recibidos de parte del co-demandado William James Jonas, III. Previamente, los tres demandados se declararon culpables de un cargo de soborno de una programa federal y admitieron que usaron sus posiciones oficiales para enriquecerse por medio de aceptar sobornos de parte de individuos con el motivo de contratar sus negocios con la cuidad.
Éste año, el Alcalde de Crystal City Ricardo Lopez y el ex–Abogado de la Cuidad, y el Director de la Cuidad Willam James Jonas, III, fueron condenados a 97 meses y 420 meses en prisión federal, respectivamente, por su participación en la esquema. Jonas fue ordenado de pagar $1,047,814.05 en restitución y Lopez fue ordenado de pagar $24,003.95 en restitución. Por su participación en la esquema, empresario Ngoc Tri Nguyen fue condenado a 17 meses de prisión federal y de pagar $6,000.00 en restitución y la perdida de $40,000.00.
La Oficina de Investigaciones Federales (FBI, por sus siglas en inglés) investigaron éste caso con la asistencia del Departamento de Seguridad Pública de Tejas División Investigativa de Crimen (DPS-CID, por sus siglas en inglés), la División de Texas Ranger, y el Departamento de Policía de San Antonio (SAPD, por sus siglas en inglés). Abogado Asistente de los Estados Unidos William R. Harris fue el fiscal de parte del gobierno.
Three Former Crystal City, TX, Officials Sentenced to Federal Prison for Bribery and Kickback SchemeRead the Press Release
In Del Rio today, U.S. District Judge Alia Moses sentenced three former Crystal City officials in connection with a bribery and kickback scheme announced United States Attorney John F. Bash and FBI Special Agent in Charge Christopher Combs.
Judge Moses sentenced former Mayor Pro-Tem Rogelio Mata, former City Councilman Roel Mata, and former City Councilman Gilbert Urrabazo to 33 months, 21 months, and 24 months in federal prison, respectively. Judge Moses ordered that all three defendants be placed on supervised release for a period of three years after completing their respective prison terms. Judge Moses further ordered the three to each pay a $2,000 fine, and ordered them jointly and severally to pay a money judgment in forfeiture of $11,291.73. The forfeiture judgment represents divestiture of the various bribes, which were paid to them and to co-defendant William James Jonas, III. Previously, all three defendants pleaded guilty to one count of federal programs bribery while admitting to using their official positions to enrich themselves by accepting cash bribes from an individual seeking to do business with the city.
Earlier this year, Crystal City Mayor Ricardo Lopez and former City Attorney and City Manager William James Jonas, III, were sentenced to 97 months and 420 months in federal prison, respectively, for their roles in the scheme. In addition, Jonas was ordered to pay $1,047,814.05 in restitution and Lopez was ordered to pay $24,003.95 in restitution. Businessman Ngoc Tri Nguyen was sentenced to 17 months incarceration and ordered to pay $6,000 in restitution and a $40,000 money judgment for his role in the fraudulent scheme.
The FBI conducted this investigation with the assistance of the Texas Department of Public Safety Criminal Investigative Division, the Texas Rangers and the San Antonio Police Department. Assistant United States Attorney William R. Harris prosecuted this case on behalf of the Government.Federal Jury Convicts Two Austin Psychologists, Owners of Psychological A.R.T.S., P.C., in Health Care OffensesRead the Press Release
In Austin today, a federal jury convicted two Austin psychologists who own and operate Psychological A.R.T.S., P.C., announced United States Attorney John F. Bash, FBI Special Agent in Charge Christopher Combs, San Antonio Division, and Texas Attorney General Ken Paxton.
Following a three-week-long trial, jurors found 73-year-old Dr. William Joseph Dubin and his son, 33-year-old Dr. David Fox Dubin, guilty of 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.
Previously, a third defendant in this case, 68-year-old patient recruiter Glen Elwood McKenzie, Jr., of Cedar Park, TX, 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.
Dr. William Dubin faces up to five years in federal prison for each count related to illegal kickbacks. Dr. David Dubin faces up to ten years in federal prison for each count related to health care fraud; and a consecutive mandatory two-year term in federal prison for the count related to aggravated identity theft. They remain on bond pending sentencing scheduled for 10:30 am on February 19, 2019 before United States District Judge Xavier Rodriguez.
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 United States Attorney Rex Beasley and Assistant United States Attorneys Greg Surovic, Justin Chung, and Daniel Castillo are prosecuting this case on behalf of the Government.Former Presidio County Official Pleads Guilty to Federal Bribery Related ChargeRead the Press Release
In Alpine today, 66-year-old Carlos Eduardo Nieto, former Special Projects Coordinator for the City of Presidio and former Presidio Independent School District trustee, entered a guilty plea to federal charges related to a public corruption investigation, announced U.S. Attorney John F. Bash and F.B.I. Special Agent in Charge Emmerson Buie, Jr., El Paso Division.
Appearing before U.S. District Judge David Counts, Nieto pleaded guilty to one count of conspiracy to commit mail fraud, wire fraud and deprivation of honest services. By pleading guilty, Nieto admitted that he and 56–year-old former Presidio County Precinct 3 Commissioner Lorenzo Padilla Hernandez conspired since May 10, 2016, to defraud Presidio County and its citizens of money by corruptly ensuring, through their positions and influence, that a particular company would be awarded a County contract for a document management system. Hernandez and Nieto solicited and received $19,800 and $8,300, respectively, for their efforts. On May 9, 2017, Hernandez voted to award the contract to that particular company.
On August 3, 2018, Hernandez pleaded guilty to the same charge.
Nieto faces up to 20 years in federal prison. Judge Counts scheduled sentencing for Nieto on February 19, 2019, in Pecos. Sentencing for Hernandez, who also faces up to 20 years in federal prison, has yet to be scheduled.
The F.B.I. with assistance from Homeland Security Investigations (HSI) and the Texas Department of Public Safety Criminal Investigations Division investigated this case. Individuals who have first-hand information about corruption, fraud, or bribery related to Presidio County are urged to contact the F.B.I. at (915) 835-5000. Assistant U.S. Attorneys Monty Kimball and William F. Lewis are prosecuting this case on behalf of the Government.
U.S. Army Sergeant at Ft. Bliss Sentenced to 60 Years in Federal PrisonRead the Press Release
In El Paso today, a federal judge sentenced 34–year-old U.S. Army Sergeant Ron Mitchell Dunbar to 60 years in federal prison followed by lifetime of supervised release for aggravated sexual abuse of a child and receipt and possession of child pornography, announced U.S. Attorney John F. Bash and Special Agent in Charge Emmerson Buie, Jr., of the Federal Bureau of Investigation (FBI), El Paso Division.
On April 19, 2018, Dunbar pleaded guilty to one count of aggravated sexual abuse of a child, one count of sexual abuse of a child, one count of aiding and abetting sexual abuse of a child and one count of receipt and possession of child pornography. By pleading guilty, Dunbar admitted that between 2007 and 2009, he sexually assaulted two minor females while on Ft. Bliss. Furthermore, Dunbar admitted that on September 15, 2017, he obtained from 29-year-old Ft. Bliss resident Faith Mitchell Chavez multiple photos he requested of her two minor daughters engaged in sexually explicit conduct.
“A single incident of sexual abuse can permanently alter the course of a child’s life. Today’s 60-year sentence reflects the utter inhumanity of these types of offenses,” stated U.S. Attorney Bash.
“Crimes against children violate the most innocent and helpless members of our community. The FBI will continue to work tirelessly to investigate allegations and crimes such as the ones in this investigation,” stated FBI Special Agent in Charge Buie.
Chavez, who remains in federal custody, is scheduled for sentencing at 8:00am on November 1, 2018, before U.S. District Judge Philip R. Martinez. On July 24, 2018, Chavez pleaded guilty to one count of conspiracy to produce child pornography. She faces between 15 and 30 years in federal prison.
The FBI, together with the U.S. Army Criminal Investigations Command, investigated this case. Assistant U.S. Attorney Ian Hanna prosecuted this case on behalf of the Government.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
Former State Senator Carlos Uresti Enters Guilty Plea to Conspiring to Bribe Public OfficialRead the Press Release
In San Antonio this morning, former District 19 Texas State Senator Carlos I. Uresti pleaded guilty to a federal bribery charge, announced U.S. Attorney John F. Bash and FBI Special Agent in Charge Christopher Combs.
Appearing before U.S. Magistrate Judge Henry Bemporad, Uresti pleaded guilty to one count of conspiracy to commit bribery. By pleading guilty, Uresti admitted that from January 2006 to September 2016, he conspired with others to facilitate the payment of bribes to former Reeves County Judge Jimmy Galindo in exchange for Judge Galindo’s official actions concerning a Reeves County Correctional Center medical services contract. Uresti further admitted to collecting $10,000 a month as a marketing consultant. Approximately half of that sum was then given to Judge Galindo as a facilitation of the bribe and for his support to award the contract to a specific company at a more favorable price to that company.
Uresti, who faces up to five years in federal prison on the bribery conspiracy charge, remains on bond pending sentencing scheduled for January 14, 2019, before Senior U.S. District Judge David A. Ezra.
On June 26, 2018, Uresti was sentenced to 12 years in federal prison and ordered to pay more than $6.3 million in restitution. A jury convicted Uresti on various federal charges regarding his role in an investment Ponzi scheme centered on a company which purportedly bought and sold fracking sand for oil production, FourWinds, Inc. The jury found that Uresti recruited investors under false pretenses by lying about investing his own money in FourWinds as well as failing to disclose his receipt of a commission and a percentage of the profits resulting from investments in FourWinds. Jurors also found that Uresti was not registered as a broker with the Securities and Exchange Commission (SEC) and that he and others engaged in money laundering with the proceeds of their fraud scheme.
The FBI’s Public Corruption Task Force is conducting this investigation. The Task Force includes investigators from the FBI, IRS-CI, Texas Department of Public Safety (DPS) and the Peace Corps-Office of Inspector General. Assistant U.S. Attorneys Joseph E. Blackwell and Sean O’Connell are prosecuting this case on behalf of the Government.
U.S. Attorney John F. Bash Announces Progress in Making Our Communities Safer Through Project Safe NeighborhoodsRead the Press Release
One year ago, the Department of Justice announced the revitalization and enhancement of Project Safe Neighborhoods (PSN), which Attorney General Sessions has made the centerpiece of the Department’s violent crime reduction strategy. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Throughout the past year, we have partnered with all levels of law enforcement, local organizations, and members of the community to reduce violent crime and make our neighborhoods safer for everyone.
“Attorney General Sessions has demonstrated tough and inspiring leadership in prioritizing the fight against violent crime,” said U.S. Attorney John F. Bash. “Our office and our federal, state, and local partners have focused considerable resources on areas in Central and West Texas that have struggled with violent crime in the past. In my view, this not just a law-and-order issue. It is also an issue of economic and social justice. When children in some communities grow up in constant fear of a sudden outbreak of random violence—when the simple act of walking to school is fraught with risk—their chance for success and happiness in life is inevitably diminished. We won’t ensure that every child in this Nation can succeed until we rid every community of gangs and gun violence.”
As we celebrate the one-year anniversary of the revitalized PSN program, here are some of the highlights of our PSN actions over the past year:
Enforcement Actions
- San Antonio (Operation Triple Beam) – From September to December 2017 the U.S. Marshal’s Lone Star Fugitive Task Force partnered with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the San Antonio Police Department (SAPD), the Bexar County Sheriff’s Office (BCSO) and the Texas Department of Public Safety (DPS). The operation targeted gangs and violent fugitives resulting in approximately 200 arrests, the seizure of nearly 70 firearms, and the confiscation of approximately $170,000 worth of drugs.
- San Antonio – In 2017, gang violence came to a head in San Antonio when a four-year-old boy was the victim of a drive-by shooting. The child was shot in the head with a .223 round as he played video games in his home. The ensuing investigation, as well as others by the Federal Bureau of Investigation (FBI), ATF, USMS, SAPD, BCSO, and DPS, resulted in federal firearm and drug trafficking charges filed against dozens of individuals including members and associates of the local factions of the Bloods and Crips.
- San Antonio – ATF has worked with SAPD and DPS on the National Integrated Ballistics Information Network (NIBIN) Task Force. NIBIN’s ballistic technology links shell casings from one crime scene to firearms and casings found at crime scenes throughout the United States. In the area of gun violence, this effort has yielded 317 leads and 33 arrests and has resulted in 75 shootings being solved.
- Temple/Killeen – Federal authorities are working with local authorities to get violent criminals off the street. Since October 2017, authorities have filed federal firearms/drug charges against more than 80 convicted felons in the Temple/Killeen areas. These filings reflect a 319% increase in federal charges filed over the previous fiscal year for offenses in the same areas.
- Odessa – For 2015 and 2016, Texas Monthly declared Odessa the “Most Dangerous City” in Texas based on statistical information for violent crimes. The Odessa PSN Task Force (Odessa Police Department, Ector County Sheriff’s Office, DPS, FBI, USMS, Drug Enforcement Administration (DEA) and ATF) recognized and focused their investigative efforts on the growing number of firearm thefts and the resulting sale of those firearms to known criminal actors, narcotics distributors and gang members. As a result, federal prosecutions in 2017 for firearms violations increased almost 30% in the Midland/Odessa Division. Individuals charged federally had extensive criminal histories (5-20 previous events).
Community Partnerships
- The U.S. Attorney’s Office is currently working with two elementary schools in the San Antonio Target Enforcement Area to establish a volunteer program made up of the office’s employees. The children in this area live in neighborhoods marked by high levels of crime and households that often mistrust law enforcement officials. The school officials believe that law enforcement officers and the U.S. Attorney’s Office could provide these students with positive role models who can help guide them to a path for productive lives and help foster trusting relationships with law enforcement agencies.
Improvements to Community Safety Nationwide
- The FBI’s official crime data for 2017 reflects that, after two consecutive, historic increases in violent crime, in the first year of the Trump Administration the nationwide violent crime rate began to decline. The nationwide violent crime rate decreased by approximately one percent in 2017, while the nationwide homicide rate decreased by nearly one and a half percent.
- The preliminary information we have for 2018 gives us reason for optimism that our efforts are continuing to pay off. Public data from 60 major cities show that violent crime was down by nearly five percent in those cities in the first six months of 2018 compared to the same period a year ago.
“Project Safe Neighborhoods is a proven program with demonstrated results,” Attorney General Jeff Sessions said. “We know that the most effective strategy to reduce violent crime is based on sound policing policies that have proven effective over many years, which includes being targeted and responsive to community needs. I have empowered our U.S. Attorneys to focus enforcement efforts against the most violent criminals in their districts, and directed that they work together with federal, state, local, and tribal law enforcement and community partners to develop tailored solutions to the unique violent crime problems they face. Each U.S. Attorney has prioritized the PSN program, and I am confident that it will continue to reduce crime, save lives, and restore safety to our communities.”
These enforcement actions and partnerships are part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. Learn more about Project Safe Neighborhoods.
Pedro Silva Segura Sentenced to Federal Prison for Conspiracy to Transport Undocumented Aliens Resulting in DeathRead the Press Release
In San Antonio today, Senior U.S. District Judge David A. Ezra sentenced 47–year-old Pedro Silva Segura to 108 months in federal prison followed by five years of supervised release for his role in an undocumented alien smuggling operation that resulted in ten deaths last year, announced U.S. Attorney John F. Bash and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden.
“Today’s lengthy sentence is a reminder that the penalties are very severe for anyone who participates in the dangerous business of illegally transporting human beings in tractor trailers. Time and again, we have seen this practice result in the loss of life of the most vulnerable among us. We will be relentless in prosecuting this very serious crime,” stated U.S. Attorney Bash.
“As this sentence makes clear, those who exploit people in this brutal and disgraceful way will face serious consequences themselves,” said Special Agent in Charge, Shane Folden, HSI San Antonio. “Alien smugglers view their clients as nothing more than a commodity and they have no qualms about collecting their smuggling fees.”
On March 8, 2018, Silva pleaded guilty to one count of conspiracy to transport undocumented aliens resulting in death. By pleading guilty, Silva admitted to operating a stash house in Laredo, TX, used as a holding area for undocumented aliens awaiting transportation to final destinations in the U.S. Silva further admitted that approximately five undocumented aliens left the stash house on the night of July 22, 2017, and were delivered to a truck driven by James Matthew Bradley, Jr., that was bound for San Antonio.
According to court records, which Silva and Bradley admitted in court were factually correct, San Antonio Police Department (SAPD) officers responded to a call at the Wal-Mart store located at 8538 Interstate 35 in San Antonio shortly after midnight on Sunday, July 23, 2017. An officer encountered a tractor-trailer behind the store, finding a number of people standing and lying in the rear of the trailer, and the driver, Bradley, in the cab. At the scene, law enforcement officers discovered 39 undocumented aliens. Of the 39 aliens found at the scene ten (10) died, eight (8) died in the trailer and two (2) died later in area hospitals. There were four juveniles, aged 14-17 years old, within the group of aliens in Bradley’s trailer who were unaccompanied by an adult. Court records further state that the undocumented aliens estimated the trailer contained between 70 and 180 to 200 people during transport. They also described differing fees for being transported.
On October 16, 2017, Bradley pleaded guilty to federal charges in connection with this investigation. On April 20, 2018, Judge Ezra sentenced Bradley to life imprisonment.
The U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated this case together with ICE Enforcement and Removal Operations (ERO), the San Antonio Police Department and the San Antonio Fire Department. The Bexar County Sheriff’s Office and the U.S. Customs and Border Protection’s Border Patrol assisted in this investigation. Assistant United States Attorneys Christina Playton and Matthew Lathrop prosecuted this case on behalf of the Government.
Tractor-Trailer Driver Sentenced to Federal Prison for Transporting Illegal AliensRead the Press Release
In San Antonio this morning, a federal judge sentenced 36–year-old Gerardo Javier Carreon of Laredo, TX, to 70 months in federal prison followed by three years of supervised release for transporting illegal aliens, announced U.S. Attorney John F. Bash and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden.
On July 5, 2018, Carreon pleaded guilty to one count of conspiracy to transport illegal aliens. On June 12, 2018, authorities responding to a scene in the area of Loop 410 and Broadway discovered over 50 illegal aliens in and around a semi-tractor trailer driven by Carreon.
“As we’ve seen too many times, transporting human beings in tractor-trailers is unbelievably dangerous. This has to stop,” stated U.S. Attorney Bash. “We will vigorously prosecute drivers who commit this dangerous crime, and the penalties are stiff.”
“As this sentence makes clear, those who exploit people in for profit will themselves face consequences,” said HSI San Antonio Special Agent in Charge Folden. “Those responsible for illegally moving people into and through our country place personal profit ahead of public safety and border protection. They are driven by greed with little regard for the health and well-being of their human cargo, which can be a deadly combination.”
The U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) is investigating this case. Assistant United States Attorneys Matt Lathrop and Christina Playton prosecuted this case on behalf of the Government.
Houston Man Sentenced to Life in Federal Prison for Racketeering Schemes that Involved the Attempted Capital Murder of State District Judge Julie KocurekRead the Press Release
In Austin today, a federal judge sentenced 31-year-old Chimene Hamilton Onyeri to life in federal prison for his leadership role in carrying out fraud and racketeering schemes that involved the attempted capital murder of State District Court Judge Julie Kocurek in November of 2015.
That announcement was made by U.S. Attorney John F. Bash; Travis County District Attorney Margaret Moore; FBI Special Agent in Charge Christopher Combs; Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge Richard D. Goss, Houston Field Office; Austin Police Chief Brian Manley; and, U.S. Postal Inspection Service (USPIS) Inspector in Charge Adrian Gonzalez, Houston Division.
In addition to the prison term, U.S. District Judge Lee Yeakel ordered Onyeri to pay $178,374.41 restitution.
“Today’s life sentence for Mr. Onyeri was about more than obtaining a measure of justice for Judge Kocurek—although we certainly did that. It was also about safeguarding the integrity of our judicial system. This office, along with our federal, state, and local law-enforcement partners, will be absolutely relentless in pursuing those who attack or threaten judges or court staff. Impartial, fearless judges are key to the rule of law. Today the rule of law was vindicated,” stated U.S. Attorney Bash.
On April 26, 2018, a jury convicted Onyeri of one count of conspiracy to violate the Racketeering Influenced Corrupt Organization (RICO) statute, one count of conspiracy to commit mail fraud, two counts of conspiracy to commit wire fraud, seven counts of aggravated identity theft, and six counts of witness tampering.
Evidence presented during trial revealed that from January 2012 to November 2015, Onyeri, 28-year-old Marcellus Antoine Burgin of Cypress, TX, and 26-year-old Rasul Kareem Scott of Marrero, LA, all conspired to commit various fraudulent schemes for financial gain in Austin, Houston, the state of Louisiana and surrounding areas. Schemes included converting stolen debit card numbers obtained from skimming devices into cash, and Stolen Identity Refund Fraud (SIRF), through the use of the U.S. Mail. Their racketeering enterprise involved mail fraud, bribery of a public official, wire fraud, document fraud, access device fraud, money laundering and attempted murder.
According to testimony, when the existence of the criminal enterprise was threatened, Onyeri responded with violence. On the night of November 6, 2015, Onyeri attempted to murder State District Court Judge Julie Kocurek, whom Onyeri believed was going to sentence him to prison, by shooting Judge Kocurek while she sat in her car outside her home in Austin. As a result of the incident, Kocurek suffered serious bodily injury from multiple gunshots and resulting shrapnel.
Testimony also revealed that in September 2016, Onyeri attempted to contact six witnesses by smuggling a note out of the Travis County Jail and corruptly persuade them not to talk about Onyeri’s criminal activities to investigators in this case.
“I have watched Judge Kocurek and her family handle this ordeal with courage and grace. At long last, they see justice,” stated Travis County District Attorney Moore. “I commend Dayna Blazey from my office and AUSA Gregg Sofer, along with the host of federal, state, and local law enforcement officials, for their tireless efforts to reach this conclusion.”
“Today’s sentencing should send a clear message to those who threaten, injure or kill members of the judiciary – you will not escape the consequences of your actions. Justice will be served and you will be held accountable,” stated FBI Special Agent in Charge Christopher Combs. “It was an honor and privilege to work with Austin Police Department, and our law enforcement partners, to bring justice for a brave jurist and dedicated public servant whose life was changed forever by the defendant’s brazen and violent actions.
“Today’s sentencing proves that the U.S. Postal Inspection Service, along with our local, state, and federal partners, will vigorously pursue individuals that attempt to circumvent justice,” stated USPIS Inspector in Charge Gonzalez.
“Thank you to all of our state, local and federal partners that helped bring justice for Judge Julie Kocurek against Chimene Hamilton Onyeri,” said APD Assistant Chief Joseph Chacon. “We respect the jury verdict in this case and the Court’s sentencing decision today. We hope Onyeri’s sentence continues to bring healing to Judge Kocurek and her family.”
Burgin and Scott both entered guilty pleas prior to jury selection. Burgin and Scott each pleaded guilty to the RICO conspiracy charge. Both remain in federal custody awaiting sentencing scheduled for sentencing at 9:00am on November 13, 2018, in Austin before Judge Yeakel.
The FBI, IRS-CI, USPIS, U.S. Secret Service, Austin Police Department and the Travis County District Attorney’s Office investigated this case. The 14th Judicial District Attorney’s Office in (Calcasieu Parish) Lake Charles, Louisiana; Fort Bend County District Attorney’s Office; U.S. Attorney’s Offices for the Southern District of Texas and the Eastern District of Louisiana; the U.S. Marshals Service; Travis County Sheriff’s Office; and, the Houston Police Department provided valuable assistance during this investigation. Assistant U.S. Attorney Gregg N. Sofer and Special Assistant U.S. Attorney Dayna L. Blazey of the Travis County District Attorney’s Office are prosecuting this case on behalf of the Government.
Two Austin Men Among Eight Individuals Indicted by a Federal Grand Jury for Their Roles in Fraudulent “Sweepstakes” and Tax Refund SchemesRead the Press Release
A federal grand jury indictment unsealed in Austin charges Austin residents Joel Calvin and Clarence Barefield along with seven other individuals for their roles in an estimated $250 million intended-loss fraudulent “sweepstakes” scheme and an estimated $25 million intended-loss income tax refund scheme.
That announcement was made today by U.S. Attorney John F. Bash; Special Agent in Charge Richard D. Goss, Internal Revenue Service-Criminal Investigation (IRS-CI), Houston Field Office; Special Agent in Charge Shane Folden, Homeland Security Investigations (HSI), San Antonio; and, Inspector in Charge Adrian Gonzalez, U.S. Postal Inspection Service (USPIS), Houston Division.
In addition to Calvin, age 31, and Barefield (aka CJ), age 40, the indictment charges Mesquite, TX, resident Donna Lundy, age 54; Nigerian citizens and Canadian residents Harry Cole (aka Akintomide Ayoola Bolu, aka John King, aka Big Bro, aka Egbon), age 48; Emmanuel Olawle Ajayi (aka Wale, aka Walata), age 41; Tony Dada Akinbobola (aka Lawrence D Awoniyi, aka Boss Tony, aka Toyin), age 47; Bolaji Akinwunmi Oyewole (aka BJ, aka Beejay), age 31; and, Nigerian citizen and Indianapolis, IN, resident Akintola Akinmadeyemi, age 54. All eight are charged with one count of conspiracy to commit wire fraud (Sweepstakes) and one count of conspiracy to commit money laundering. Emmanuel Ajayi also faces a second conspiracy-to-commit-wire-fraud charge (Stolen Identity Refund Fraud) and an aggravated identity theft charge. Lundy also faces one substantive count of wire fraud.
According to the indictment, the defendants carried out their sweepstakes scheme from 2012 to 2016. Charging $1 per name, Lundy collected over $700,000 by selling lists of elderly potential victims and their addresses to Cole in Canada. Cole and others conspirators based in the Toronto, Ontario Canada metropolitan area sent packages containing fraudulent sweepstakes information to conspirators residing in the U.S. The packages contained thousands of mailers, which U.S.-based conspirators sent to victims notifying them that they had won a sweepstakes. Each mailer included a fraudulent check issued in the name of the victim, typically in the amount of $8,000, and a pre-addressed envelope. Victims were instructed to deposit the check into his/her bank account, immediately withdraw between $5,000 and $7,000 dollars in cash or money orders and send the money to a “sweepstakes representative” to facilitate the victim collecting her or her prize. By the time the victim was notified by the bank that the deposited check was fraudulent, the cash or money order had been sent by the victim and received by the defendants or conspirators. The intended loss from this scheme was $250 million, with an actual loss of more than $900,000.
The indictment also alleges that from June 2015 through June 2016, Emmanuel Ajayi led a SIRF scheme in which over 1,200 fraudulent Income Tax Returns were filed using stolen Personal Identifying Information (PII) requesting $25 million in tax refunds. Ajayi used bank accounts involved in the sweepstakes scheme to receive refunds and funnel the money to conspirators in the U.S. An IRS analysis determined that this scheme resulted in the actual loss of approximately $3.4 million paid from the U.S. Treasury.
In order to acquire the money generated by the Sweepstakes and SIRF schemes, the conspirators operated a money laundering conspiracy in the U.S. That conspiracy employed knowing and unknowing participants to conduct financial transactions with the goals of moving the proceeds from both fraudulent schemes outside of the U.S. without detection by law enforcement.
Federal authorities arrested Calvin in Austin yesterday. Barefield is currently in state custody on an unrelated matter. Federal authorities arrested Akinmadeyemi in Indianapolis, IN, yesterday. He remains in federal custody awaiting transfer to the Austin Division of the Western District of Texas. Canadian authorities arrested Cole and Akinbobola in Canada yesterday pursuant to a provisional arrest warrant issued by a Canadian court. Both remain in Canada pending an extradition request by the U.S. Lundy has agreed to turn herself in to authorities. The whereabouts of Ajayi and Oyewole are unknown. Ajayi and Oyewole are considered fugitives.
Aggravated identity theft calls for a mandatory two years imprisonment upon conviction. Each of the remaining charges call for up to 20 years in federal prison upon conviction.
This indictment resulted from a continuing investigation by IRS-CI, HSI, and USPIS. The U.S. Marshals Service, the Office of International Affairs at the Department of Justice and the Toronto Police Service provided valuable assistance with yesterday’s arrests. Assistant United States Attorney Michael Galdo is prosecuting this case on behalf of the Government.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Former Bandidos National President Sentenced to Life in Federal PrisonRead the Press Release
In San Antonio today, a federal judge sentenced 63–year-old Bandidos Outlaw Motorcycle Organization National President Jeffrey Faye Pike of Conroe, TX, to life, plus ten years, in federal prison for racketeering and drug trafficking charges.
That announcement was made today by United States Attorney John F. Bash, Western District of Texas; Drug Enforcement Administration (DEA) Special Agent in Charge Will Glaspy, Houston Division; Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division; Texas Department of Public Safety Director Steven McCraw; Austin Police Chief Brian Manley; San Antonio Police Chief William McManus; and Atascosa County Sheriff David A. Soward
“As I have said before, this prosecution shows that the Department of Justice has the tools to strip away a veneer of legitimate activity to expose and punish underlying criminal conduct. Others—and not only those involved in violent activity—should take note,” stated United States Attorney John F. Bash.
On Monday, Judge Ezra sentenced Bandidos National Vice President John Xavier Portillo to two consecutive life sentences, plus twenty years, in federal prison.
On May 17, 2018, after a nearly three-month trial, jurors convicted Pike and Portillo of (count 1) conspiracy to violate the Racketeering Influenced Corrupt Organization (RICO) statute; (count 3) murder in aid of racketeering; (count 4) conspiracy to commit murder in aid of racketeering; (count 5) one count of conspiracy to commit assault with a dangerous weapon in aid of racketeering; (counts 6 and 7) aiding and abetting assault with a dangerous weapon in aid of racketeering; (count 9) discharging a firearm during a violent crime; and, (count 12) interference with commerce by threats and violence. Jurors also convicted Portillo of (count 2) murder in aid of racketeering; (count 8) discharging a firearm during a crime of violence; (count 10) conspiracy to possess with intent to distribute more than 500 grams of methamphetamine and cocaine; (count 11) possession with intent to distribute cocaine; and, (count 13) felon in possession of a firearm.
Jurors found Pike and Portillo guilty of conspiring to conduct the affairs of a criminal organization through racketeering acts including directing, sanctioning, approving and permitting members of the Bandidos to commit murder, attempted murder, robbery, assault, intimidation, extortion and drug trafficking. Evidence during trial revealed that in 2006, Pike and Portillo ordered other Bandidos members to murder Anthony Benesh. At the time, Benesh was attempting to start a Texas Chapter of the Hells Angels in Austin. Members of the Bandidos warned Benesh to cease his activities and recruitment, which Benesh ignored. Several Bandidos members then murdered Benesh on March 18, 2006 outside an Austin restaurant to protect the power, reputation and territory of the Bandidos enterprise.
Jurors also found that Portillo and others killed Robert Lara in January 2002 in Atascosa County as payback for killing Bandidos member Javier Negrete. Negrete, a member of the same local Bandidos chapter as Portillo at the time, was killed outside a San Antonio bar in October 2001.
Jurors also found that Pike, Portillo and others conspired to murder and assault members and associates of the Cossacks Outlaw Motorcycle Organization (Cossacks). Testimony revealed that Portillo, with Pike’s approval, declared that the Bandidos were “at war” with the Cossacks. A number of violent acts were committed by the Bandidos around Texas in furtherance of this “war,” including in Fort Worth, Gordon, Odessa, Port Aransas, Crystal City and elsewhere.
Testimony also revealed that Portillo and other members of the Bandidos were engaged in trafficking methamphetamine and cocaine and maintained an agreement with the Texas Mexican Mafia wherein Bandidos members were not required to pay the 10-percent “dime” to the Texas Mexican Mafia in exchange for permission to traffic narcotics.
“The sentencing of Bandidos National President Jeffery Pike highlights the success law enforcement agencies can achieve and the impact we can have when we combine our resources and investigative talents. DEA will continue to work with our law enforcement partners and pursue those criminal organizations who threaten our communities with violence and engage in the distribution of illegal and dangerous drugs,” stated Will Glaspy, Special Agent in Charge of the Drug Enforcement Administration – Houston Division.
“The sentencing rendered today is the result of the outstanding partnership between the FBI and all our law enforcement partners,” said FBI Special Agent in Charge Christopher Combs. “This effort demonstrates our ongoing commitment to prevent gang violence and criminal activity from poisoning our communities. It also sends a clear message that we will relentlessly pursue and prosecute the leaders and members of these violent criminal enterprises.”
“Gang violence is a threat to the safety and security of Texas communities,” said DPS Director Steven McCraw. “These are complex cases, but thanks to the hard work and collaboration between law enforcement authorities and prosecutors, these criminals are no longer free to prey on our communities.”
The FBI, DEA and Texas DPS investigated this case together with the Internal Revenue Service-Criminal Investigation, U.S. Customs and Border Protection, Homeland Security Investigations (HSI), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Austin Police Department, New Braunfels Police Department, Seguin Police Department, San Antonio Police Department, Bexar County Sheriff’s Department, Atascosa County Sheriff’s Department, Palo Pinto County Sheriff’s Department, Ector County Sheriff’s Department, the Bexar County District Attorney’s Office, and U.S. Attorney’s Office for the Southern District of Texas. Assistant United States Attorneys Eric Fuchs and John Gibson are prosecuting this case on behalf of the Government.
Federal Charges Filed Against Engineering Department Operations Supervisor and Two Businessowners for Scheme to Defraud Veterans Administration Medical Center in TempleRead the Press Release
In Waco today, federal authorities filed charges against Temple, TX, couple Christopher Sebek, 55, and Melissa Sebek, 55, and Killeen, TX resident Jeffrey Pearson, 55, for their roles in a scheme to defraud the Department of Veterans Affairs of approximately $250,000, announced U.S. Attorney John F. Bash and U.S. Department of Veterans Affairs Office of Inspector General (VA-OIG) Criminal Investigations Division Special Agent in Charge James Ross, South Central Field Office.
Christopher Sebek, Operations Supervisor in the Engineering Department at the Veterans Administration Medical Center (VAMC) in Temple; and Jeffrey Pearson, owner and operator of Whitetail Industrial, a business which contracted goods and services to VAMC-Temple, are both charged by an Information with one count of conspiracy to defraud the government and one count of theft of government property. A separate, but related, Information charges Melissa Sebek, owner and operator of MS. Bookkeeping Services, with one count of theft of government property.
According to court records, beginning in February 2012, Christopher Sebek and Jeffrey Pearson entered into an agreement to steal money from the VAMC. Over a five-year period, they allegedly submitted fraudulent invoices to VAMC for payment purportedly for goods and services designated for VAMC. Sebek also presented bogus invoices to VAMC from his wife’s company. Those invoices, however, were used by Sebek to pay for personal items and to cover Pearson’s 30% commission on each invoice. Court records also allege that Sebek stole two VAMC credit cards and used them to pay for personal expenses.
Upon conviction, the defendants face up to five years in federal prison on the conspiracy charge and up to ten years in federal prison on the theft charge. All three will receive summonses for their Initial Appearance in federal court in Waco.
The VA-OIG investigated this case. Assistant U.S. Attorney Greg Gloff is prosecuting this case on behalf of the Government.
It is important to note that an Information is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Former Bandidos National Vice President Sentenced to Life in Federal PrisonRead the Press Release
In San Antonio today, a federal judge sentenced 59–year-old Bandidos Outlaw Motorcycle Organization National Vice President John Xavier Portillo to two consecutive life sentences, plus twenty years, in federal prison for racketeering and drug trafficking charges.
That announcement was made today by United States Attorney John F. Bash, Western District of Texas; Drug Enforcement Administration (DEA) Special Agent in Charge Will Glaspy, Houston Division; Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division; Texas Department of Public Safety Director Steven McCraw; Austin Police Chief Brian Manley; San Antonio Police Chief William McManus; and Atascosa County Sheriff David A. Soward
In addition to the prison terms, Senior U.S. District Judge David A. Ezra ordered that Portillo forfeit to the Government his motorcycle, three firearms and $17,827.20 seized from a search of his residence in 2016.
“As I have said before, this prosecution shows that the Department of Justice has the tools to strip away a veneer of legitimate activity to expose and punish underlying criminal conduct. Others—and not only those involved in violent activity—should take note,” stated United States Attorney John F. Bash.
On May 17, 2018, after a nearly three-month trial, jurors convicted Portillo and National Bandidos President Jeffrey Fay Pike, age 63 of Conroe, TX, of (count 1) conspiracy to violate the Racketeering Influenced Corrupt Organization (RICO) statute; (count 3) murder in aid of racketeering; (count 4) conspiracy to commit murder in aid of racketeering; (count 5) one count of conspiracy to commit assault with a dangerous weapon in aid of racketeering; (counts 6 and 7) aiding and abetting assault with a dangerous weapon in aid of racketeering; (count 9) discharging a firearm during a violent crime; and, (count 12) interference with commerce by threats and violence. Jurors also convicted Portillo of (count 2) murder in aid of racketeering; (count 8) discharging a firearm during a crime of violence; (count 10) conspiracy to possess with intent to distribute more than 500 grams of methamphetamine and cocaine; (count 11) possession with intent to distribute cocaine; and, (count 13) felon in possession of a firearm.
Jurors found Pike and Portillo guilty of conspiring to conduct the affairs of a criminal organization through racketeering acts including directing, sanctioning, approving and permitting members of the Bandidos to commit murder, attempted murder, robbery, assault, intimidation, extortion and drug trafficking. Evidence during trial revealed that in 2006, Pike and Portillo ordered other Bandidos members to murder Anthony Benesh. At the time, Benesh was attempting to start a Texas Chapter of the Hells Angels in Austin. Members of the Bandidos warned Benesh to cease his activities and recruitment, which Benesh ignored. Several Bandidos members then murdered Benesh on March 18, 2006 outside an Austin restaurant to protect the power, reputation and territory of the Bandidos enterprise.
Jurors also found that Portillo and others killed Robert Lara in January 2002 in Atascosa County as payback for killing Bandidos member Javier Negrete. Negrete, a member of the same local Bandidos chapter as Portillo at the time, was killed outside a San Antonio bar in October 2001.
Jurors also found that Pike, Portillo and others conspired to murder and assault members and associates of the Cossacks Outlaw Motorcycle Organization (Cossacks). Testimony revealed that Portillo, with Pike’s approval, declared that the Bandidos were “at war” with the Cossacks. A number of violent acts were committed by the Bandidos around Texas in furtherance of this “war,” including in Fort Worth, Gordon, Odessa, Port Aransas, Crystal City and elsewhere.
Testimony also revealed that Portillo and other members of the Bandidos were engaged in trafficking methamphetamine and cocaine and maintained an agreement with the Texas Mexican Mafia wherein Bandidos members were not required to pay the 10-percent “dime” to the Texas Mexican Mafia in exchange for permission to traffic narcotics.
“The sentencing of Bandidos National Vice President Xavier Portillo is one more step in concluding a comprehensive investigation by DEA, FBI and our law enforcement partners into the leadership structure and criminal activities of the Bandidos Outlaw Motorcycle Gang,” said Will Glaspy, Special Agent in Charge of the Drug Enforcement Administration – Houston Division. “This investigation reflects law enforcements commitment to make sure communities across Texas are safe and prevent gang members involved in drug distribution and other criminal activity from establishing a foothold in our communities.”
“The sentencing rendered today is the result of the outstanding partnership between the FBI and all our law enforcement partners,” said FBI Special Agent in Charge Christopher Combs. “This effort demonstrates our ongoing commitment to prevent gang violence and criminal activity from poisoning our communities. It also sends a clear message that we will relentlessly pursue and prosecute the leaders and members of these violent criminal enterprises.”
“Gang violence is a threat to the safety and security of Texas communities,” said DPS Director Steven McCraw. “These are complex cases, but thanks to the hard work and collaboration between law enforcement authorities and prosecutors, these criminals are no longer free to prey on our communities.”
Pike, who faces up to life in federal prison, is scheduled to be sentenced at 9:00am on September 26, 2018.
The FBI, DEA and Texas DPS investigated this case together with the Internal Revenue Service-Criminal Investigation, U.S. Customs and Border Protection, Homeland Security Investigations (HSI), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Austin Police Department, New Braunfels Police Department, Seguin Police Department, San Antonio Police Department, Bexar County Sheriff’s Department, Atascosa County Sheriff’s Department, Palo Pinto County Sheriff’s Department, Ector County Sheriff’s Department, Bexar County District Attorney’s Office, and the U.S. Attorney’s Office for the Southern District of Texas. Assistant United States Attorneys Eric Fuchs and John Gibson are prosecuting this case on behalf of the Government.
El Paso Woman Sentenced to Federal Prison in Kidnapping CaseRead the Press Release
In El Paso today, a federal judge sentenced 36–year-old Norma Juarez Taha to 151 months in federal prison followed by five years of supervised release for her role in connection with the kidnapping of a 20-year-old female in El Paso in February 2017, announced U.S. Attorney John F. Bash and Federal Bureau of Investigation Special Agent in Charge Emmerson Buie, Jr.
On March 16, 2018, a federal jury convicted Taha on one count of kidnapping and one count of possession of a firearm during a crime of violence. Evidence presented during trial revealed that on February 13, 2017, the defendant, known to her victim as Sister Norma, went into the victim’s house at approximately 3:30 A.M. and lured the victim out of the house by telling her that her family was in danger and that immigration authorities were attempting to deport them. The defendant drove the victim to a remote residence on the east side of El Paso that belonged to Taha’s mother. At the residence, the victim saw that Taha was in possession of a firearm. Subsequently, Taha placed the victim in her mother’s truck and injected her with a mixture of drugs. Taha’s mother then drove the victim across the border to a residence in Juarez. Taha and her mother left the victim at that residence and never returned. At approximately 10:30 P.M. on February 13, 2017, two individuals at the residence transported the victim to the Paso Del Norte Port of Entry. The victim was then transported to an El Paso hospital where she received medical attention.
Further investigation by FBI agents revealed that Taha agreed to kidnap the victim on the ground that her lifestyle brought embarrassment to her family. During a search of the defendant’s vehicle and residence, authorities discovered the firearm possessed by Taha, as well as the medication used by Taha to inject the victim during the kidnapping.
Based on a recent legal precedent, U.S. District Judge Frank Montalvo granted the defendant’s request to dismiss the firearm charge prior to sentencing. Judge Montalvo will determine restitution in this case at a later date.
The FBI investigated this case. Assistant U.S. Attorneys Patricia Acosta and Shane Wagman prosecuted this case on behalf of the Government.
Nineteen (19) Arrested in Waco on Federal Drug Trafficking ChargesRead the Press Release
Federal and state authorities have arrested 19 individuals for their alleged roles in a methamphetamine distribution operation in the Waco area, 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, San Antonio Division; Waco Police Chief Ryan Holt; and Texas Department of Public Safety Director Steven McCraw.
A federal grand jury indictment unsealed today charges the defendants with one count of conspiracy to possess with intent to distribute methamphetamine. The defendants include:
Name Age Residence Statutory Maximum Penalty
Rene Marquez Lopez 42 Waco 10 years to life imprisonment
Peter Nino 34 Waco 10 years to life imprisonment
Brandon Roy Stout 34 Waco 10 years to life imprisonment
Lloyd Ray Gatlin 44 Waco 10 years to life imprisonment
**Justin Rene Hernandez 31 Dallas 10 years to life imprisonment
Cruz Oviedo 26 Austin 10 years to life imprisonment
Kyle Anthony Baker 33 Waco 5 to 40 years imprisonment
Juli Jenice Aleman (aka Juli Jenice Garcia) 41 Waco 5 to 40 years imprisonment
**Devito Dembinsky 30 Waco 5 to 40 years imprisonment
Benito Rodriguez 37 Waco 5 to 40 years imprisonment
**Decedreon Miller 38 Waco 5 to 40 years imprisonment
Ricky Rivera 43 Waco 5 to 40 years imprisonment
Julian Rivera 39 Waco 5 to 40 years imprisonment
Shauna Gilstrap 39 Waco 5 to 40 years imprisonment
James Leroy McMillion 54 Waco 5 to 40 years imprisonment
Brent May 55 Whitney, TX 5 to 40 years imprisonment
Sandra Oviedo (aka Sandra Cardenas) 25 Austin 5 to 40 years imprisonment
**Jesus Juan Lopez 41 Waco 5 to 40 years imprisonment
Nicholas Charles Caufield 43 Waco 5 to 40 years imprisonment** Already in custody prior to today
Authorities allege that since January 2017, these defendants were responsible for the distribution of large amounts of methamphetamine throughout Waco and surrounding areas.
During this investigation, authorities seized approximately nine pounds of methamphetamine.
All of the defendants remain in federal custody pending detention hearings expected to occur next week before U.S. Magistrate Judge Jeffrey Manske in Waco.
The DEA, FBI, Texas Department of Public Safety, and Waco Police Department are investigating this case. The U.S. Marshals Service and the McLennan County Sheriff’s Office provided valuable assistance with today’s arrests. Assistant U.S. Attorney Stephanie Smith-Burris is 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.
Kickapoo Traditional Tribe of Texas to Receive $390,599 in Federal Grant Money to Improve Public SafetyRead the Press Release
The Kickapoo Traditional Tribe of Texas (Kickapoo) will receive a $390,599 federal grant to address violent crime against Indian women. U.S. Attorney John F. Bash joined the Department of Justice today in announcing the award to the Kickapoo as part of more than $13 million in grants being awarded to improve public safety, serve victims of crime, combat violence against women, and support youth programs in American Indian and Alaska Native communities.
“The specific purpose of this federal grant is to reduce crimes of domestic violence, sexual assault, sex trafficking and stalking on the Kickapoo Reservation,” stated U.S. Attorney Bash.
With this funding, Kickapoo Tribal Government and Tribal Law Enforcement will develop or provide a crisis hotline, supportive services, support groups and victims assistance such as court accompaniment, advocacy, counseling and transitional housing assistance.
Nationwide, grants were awarded to 133 American Indian tribes, Alaska Native villages, and other tribal designees through the Coordinated Tribal Assistance Solicitation (CTAS), a streamlined application for tribal-specific grant programs. Of the $113 million, just over $53 million comes from the Office of Justice Programs, more than $35 million from the Office on Violence Against Women, and more than $24.7 million from the Office of Community Oriented Policing Services.
CTAS awards cover nine purpose areas: public safety and community policing; justice systems planning; alcohol and substance abuse; corrections and correctional alternatives; children’s justice act partnerships; services for victims of crime; violence against women; juvenile justice; and tribal youth programs. CTAS funding helps tribes develop and strengthen their justice systems’ response to crime, while expanding services to meet their communities’ public safety needs.
“There is an unacceptable level of violent crime and domestic abuse in American Indian and Alaska Native communities. This increase in resources, together with our aggressive investigation and prosecution of crimes, shows how seriously Attorney General Sessions and the entire Department of Justice take these issues. We are committed to reducing violent crime and improving public safety,” said Principal Deputy Associate Attorney General Jesse Panuccio.
Today’s announcement is part of the Justice Department’s ongoing initiative to increase engagement, coordination and action on public safety in American Indian and Alaska Native communities.
For a listing of today’s announced CTAS awards go to: www.justice.gov/tribal/page/file/1095161/download.
Former G.E.O. Guard Sentenced to 57 Months in Federal Prison for Agreeing to Smuggle Crystal Methamphetamine into FacilityRead the Press Release
In San Antonio today, a federal judge sentenced a former employee of the Central Texas Detention Facility – GEO (GEO) to 57 months imprisonment for agreeing to provide crystal methamphetamine to an inmate inside the federal detention facility announced U.S. Attorney John F. Bash, Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division and U.S. Marshal Susan Pamerleau.
In addition to the prison term, U.S. District Judge Xavier Rodriguez ordered that 28–year–old Abigail Jolynn Abrego be placed under supervised release for a period of three years after completing her prison term. Judge Rodriguez also sentenced Abrego’s co-defendant and boyfriend, 55–year–old Leonard Belmares, to 46 months in federal prison followed by three years of supervised release. Judge Rodriguez ordered Abrego and Belmares to surrender to federal authorities on or before November 30, 2018, to begin serving their respective prison terms.
Earlier this year, both defendants pleaded guilty to one count of attempting to providing contraband in prison. By pleading guilty, they admitted that in November 2017, they met with an undercover agent and agreed to smuggle methamphetamine into the facility and give it to an inmate in exchange for $1,500. They also admitted to working together on at least three previous occasions to smuggle drugs and/or contraband into the facility in exchange for money.
“I commend the U.S. Attorney’s Office, the FBI and our U.S. Marshals Service personnel on their collaborative success in this investigation,” said U.S. Marshal Susan Pamerleau. “Their hard work and diligent efforts resulted in justice being served today.”
The Federal Bureau Investigation and the U.S. Marshals Service investigated this case. Assistant U.S. Attorney Sarah Wannarka prosecuted this case on behalf of the Government.
Texas Man Convicted of Tax EvasionRead the Press Release
A federal jury in the Western District of Texas convicted a San Antonio man today of three counts of tax evasion, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney John F. Bash for the Western District of Texas.
According to court documents and evidence presented at trial, between October 2000 and December 2013, Robert Steven Powell evaded the payment of more than $900,000 in income taxes for the years 1999 through 2009. Powell evaded payment of his taxes by submitting false Internal Revenue Service (IRS) Forms W-4 to his employer, which falsely claimed that he was exempt from federal tax withholding. Powell also placed a house and recreational vehicle in nominee names and attempted to conceal his physical address from the IRS by obtaining identification documents from multiple states using false personal residence addresses.
Powell evaded the assessment of his 2010 and 2011 tax liabilities by maintaining, rather than correcting, false documents submitted to his long-term disability payer, on which he falsely claimed to be exempt from federal income tax withholding. Moreover, Powell did not file a tax return for those years, despite an obligation to do so. In total, the government’s evidence established a tax loss of more than $900,000.
Sentencing has not yet been scheduled. Powell faces a statutory maximum of five years in prison on each count, as well as a period of supervised release and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney John Bash commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant United States Attorney Bill Harris and Trial Attorney Gregory Bailey of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and and its enforcement efforts may be found on the division’s website.
Odessa Businessman Sentenced to Federal Prison for Money Laundering and Tax EvasionRead the Press Release
In Midland today, a federal judge sentenced 40-year-old Jose Abelardo Dominguez to three years in federal prison for his role in money laundering and tax evasion schemes, announced U.S. Attorney John F. Bash; FBI Special Agent in Charge Emmerson Buie, Jr., El Paso Division; Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge D. Richard Goss, Houston Field Office; Homeland Security Investigations (HSI) Special Agent in Charge Jack P. Staton, El Paso Division; and, Texas Department of Public Safety Director Steven McCraw.
In addition to the prison term, U.S. District Judge David Counts ordered that Dominguez pay $1,971,072.45 in restitution to the IRS, a $10,000 fine and a money judgement in the amount of $5,088,507.98. Judge Counts further ordered Dominguez to forfeit to the Government seven real estate properties in Ector and Midland counties; approximately $375,000 in U.S. currency seized from various bank accounts; approximately $140,000 in U.S. Currency seized from two of his Odessa properties; and, four vehicles. Judge Counts also ordered that Dominguez be placed on supervised release for a period of three years after completing her prison term.
According to court records, an investigation conducted by the FBI, IRS-CI, HSI, and Texas DPS revealed that Dominguez operated an illegal sports wagering enterprise from 2011 to 2016. Dominguez provided gamblers opportunities to place bets using websites www.betvegas365.com and www.1betvegas.com. Gambling debts owed to Dominguez were usually paid through U.S. currency, checks, wire transfers or direct deposits into one of several bank accounts controlled by Dominguez. Dominguez used those funds to purchase real property and vehicles or to fund business ventures. Dominguez created two businesses—Peps Properties in June 2011 and Permian Basin Consulting, LLC in January 2014—and used them and their corresponding business bank accounts to launder proceeds from his sports wagering operation and conceal the source and/or nature of those proceeds. In 2014, Dominguez received in excess of $2.3 million dollars in gambling proceeds.
On June 19, 2018, Dominguez pleaded guilty to one count of money laundering and one count of tax evasion. By pleading guilty, Dominguez admitted that in August 2014, he engaged in a monetary transaction with criminally derived proceeds. Dominguez also admitted that he provided a federal income tax return for 2014 in which he falsely underreported his taxable income as $63,496.
Assistant U.S. Attorney William F. Lewis prosecuted this case on behalf of the Government.
FourWinds C.E.O. Stanley Bates Sentenced to 15 Years in Federal PrisonRead the Press Release
In San Antonio today, a federal judge sentenced former FourWinds Chief Executive Officer Stanley P. Bates to
15 years in federal prison, announced U.S. Attorney John F. Bash, Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division, and Internal Revenue Service-Criminal Investigation Special Agent in Charge D. Richard Goss, Houston Field Office.
In addition to the prison term, Senior U.S. District Judge David A. Ezra ordered that Bates pay $6,345,414 million restitution and be placed on supervised release for a period of three years after completing his prison term.
“Today Mr. Bates received a just punishment for the fraudulent scheme he orchestrated. Like all such schemes, the FourWinds plot, stripped to its core, was simply an effort to steal money belonging to other people,” stated U.S. Attorney Bash.
On January 8, 2018, Bates pleaded guilty to eight separate federal charges including securities fraud and money laundering stemming from a Ponzi scheme that defrauded investors out of millions of dollars. In February, a jury found Bates’s co-defendants, former District 19 Texas State Senator Carlos Uresti and FourWinds Logistics, Inc., (FourWinds) consultant Gary L. Cain, guilty on all charges for their roles in the scheme. In June, Judge Ezra sentenced Uresti and Cain to 12 years in federal prison and 68 months in federal prison, respectively. Judge Ezra also ordered that Uresti and Cain pay, jointly and severally, over $6.3 million in restitution.
Evidence presented during trial revealed that from February 2014 to December 2015, the defendants developed an investment Ponzi scheme to buy and sell hydraulic fracturing (fracking) sand for oil production. Evidence showed that the defendants made false statements and representations while soliciting investors in FourWinds. Collected funds were then used to pay earlier investors and for personal expenses including gifts, travel, luxury automobiles, controlled substances, and to hire prostitutes. Evidence and testimony also revealed that Uresti, Cain and Bates engaged in money laundering with the proceeds of wire fraud.
The FBI’s Public Corruption Task Force is conducting this investigation. The Task Force is comprised of investigators from the FBI, IRS-CI, Texas Department of Public Safety (DPS) and the Peace Corps-Office of Inspector General. Assistant U.S. Joseph E. Blackwell, William R. Harris, Mark Roomberg, Erica Giese and Sean O’Connell are prosecuting this case on behalf of the Government.
Arrests Made on San Antonio’s Eastside Based on Federal Drug Trafficking and Money Laundering ChargesRead the Press Release
Federal and state authorities have arrested nine individuals for their alleged roles in narcotics distribution and money laundering activities on San Antonio’s Eastside, announced United States Attorney John F. Bash; Drug Enforcement Administration Special Agent in Charge Will Glaspy, Houston Division; San Antonio Police Chief William McManus; Bexar County Sheriff Javier Salazar; and Texas Department of Public Safety Director Steven McCraw.
A two-count federal grand jury indictment unsealed today charges the defendants with conspiracy to possess with intent to distribute cocaine and conspiracy to commit money laundering. Defendants, who were arrested yesterday and charged in this indictment, include: 44-year-old Leroy Sarpenter; 38-year-old Roy Perkins; 37-year-old Demetrius Goode (aka “Dale Wilkins”); 44-year-old Andre Johnson; 28-year-old Jacob Cavazos (aka “J-Dawg”); 44-year-old Kenneth Brown (aka “Bean”); 41-year-old Terrance Stevenson; 39-year-old Damaneion Goode (aka “D-Down”); and, 46-year-old Larry Johnson (aka “Skull”).
The indictment alleges that these defendants distributed multi-kilograms of cocaine since January 2015.
All of the defendants remain in federal custody pending detention hearings expected to occur next week in U.S. Magistrate Court in San Antonio. Upon conviction, the defendants face between ten years and life in prison on the drug conspiracy charge and up to 20 years in federal prison on the money laundering conspiracy charge.
The Drug Enforcement Administration, the San Antonio Police Department, the Bexar County Sheriff’s Office, and the Texas Department of Public Safety are investigating this case with assistance from Homeland Security Investigations (HSI), Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation, Castle Hills Police Department, Live Oak Police Department, Leon Valley Police Department, Hollywood Park Police Department, and Comal County Sheriff’s Office. Assistant U.S. Attorney Russell Leachman is prosecuting this case on behalf of the Government.
“SAPD is pleased with the success of the recent collaborative operations with our law enforcement partners. We want to thank all the taskforces involved for their dedication. The recent arrests takes us a step closer to making our community safer. We will continue to work to bring justice to those who threaten the safety of our great city,” stated SAPD Chief McManus.
“The Bexar County Sheriff’s Office is proud of our ongoing relationship with our area Law Enforcement partners. This operation’s success is a direct testament to what happens when we all work together for the greater good of our community,” stated Bexar County Sheriff Salazar.
“This cocaine distribution investigation is a great example of the valuable partnerships between local, state and federal law enforcement in Texas, which is critical to combatting crime in our communities,” said DPS Director Steven McCraw. “Thanks to the collaborative efforts during this investigation, the community is safer today with these suspects behind bars.”
The principal mission of the Organized Crime Drug Enforcement Task Force (OCDETF) program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering operations and those primarily responsible for the nation’s illegal drug supply.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Second Defendant Sentenced to Federal Prison in Case Involving the Shooting of a U.S. Mail CarrierRead the Press Release
In San Antonio today, a federal judge sentenced 27-year-old Sarah Richford of San Antonio, to 20 years imprisonment in connection with the shooting of a U.S. Mail carrier last year in Spring Branch, TX, announced U.S. Attorney John F. Bash; Inspector in Charge Adrian Gonzalez, U.S. Postal Inspection Service, Houston Division; and, San Antonio Police Chief William McManus.
In addition to the prison term, Chief U.S. District Judge Orlando Garcia ordered that Richford pay $175,405.92 restitution and be placed on supervised release for a period of five years after completing her prison term.
On February 23, 2018, Richford pleaded guilty to five charges including aiding and abetting carjacking; aiding and abetting use of a firearm during a crime of violence; aiding and abetting robbery of U.S. Mail; and, two counts of aiding and abetting assault on a federal officer.
According to court records, on February 11, 2017, Richford’s co-defendant, 24-year-old Bradley Ahearn, shot a female U.S. Mail carrier as she was delivering mail to a cluster of mailboxes in Spring Branch, TX. The victim is still recovering from the gunshot that pierced both of her legs. Ahearn fled the scene in the Mail carrier’s vehicle followed by Richford in a separate vehicle.
On February 14, 2017, employees of a local motel notified investigators of the presence of a large amount of U.S. Mail and a handgun case in one of the motel rooms. Much of the discovered mail, originating from locations across the country, was destined for addresses in the Spring Branch, TX area. Motel surveillance footage showed a third co-defendant, 41-year-old Piper Lee, picking up Ahearn and Richford and leaving the motel in Lee’s yellow Volkswagen. Investigators requested San Antonio police to initiate a stop of the vehicle. While failing to yield to SAPD officers, Ahearn began shooting at the police officers and another high-speed pursuit ensued. Ultimately, the defendants abandoned their vehicle inside a parking garage of a local mall and managed to elude capture by law enforcement.
On February 15, 2017, San Antonio police officers, acting on information provided to investigators, arrested Ahearn, Richford and Lee without incident in a parking lot of a different local motel.
On July 12, 2018, Ahearn was sentenced to 20 years in federal prison after pleading guilty to seven charges including aiding and abetting carjacking; aiding and abetting use of a firearm during a crime of violence; aiding and abetting robbery of U.S. Mail; and, four counts of aiding and abetting assault on a federal officer.
Lee, who remains in federal custody, faces up to 20 years in federal prison. Sentencing is scheduled for November 1, 2018, before Chief Judge Garcia.
The U.S. Postal Inspection Service together with the San Antonio Police Department, Texas Department of Public Safety, Texas Rangers, Comal County Sheriff’s Office, Bulverde Police Department, Federal Bureau of Investigation, U.S. Marshals Service and Homeland Security Investigations (HSI) investigated this case. Assistant U.S. Attorneys Bettina Richardson and Christina Playton are prosecuting this case on behalf of the Government.
Honduran National Charged with Assaulting Border Patrol AgentsRead the Press Release
In Del Rio, federal authorities filed a criminal complaint against 48–year-old Honduran National Leivin Pineda for allegedly assaulting a Border Patrol agent over the weekend near Eagle Pass, announced United States Attorney John F. Bash and Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division.
The criminal complaint alleges that on September 2, 2018, Border Patrol agents observed the defendant, who they believed to be an illegal alien, walking along FM 1907 in Maverick County. According to the complaint, the agents attempted to approach Pineda, but he fled on foot into the brush. At several points during the foot chase, Pineda threw softball-sized rocks at a high velocity towards the agents’ heads. During the pursuit, the agents repeatedly gave verbal commands to stop, but Pineda refused. The complaint further states that due to Pineda’s actions and that the rocks thrown at the agents could cause serious physical injury or death, a pursuing agent drew his firearm and shot Pineda in the upper chest/left upper arm area in order to neutralize the threat.
Pineda is currently in federal custody following medical treatment and release from a hospital. A detention hearing is scheduled for 1:00pm on September 11, 2018, before United States Magistrate Judge Victor Roberto Garcia in Del Rio. Upon conviction, Pineda faces up to 20 years in federal prison on the assault charge.
The FBI, Department of Homeland Security Office of Inspector General (DHS OIG) and U.S. Customs and Border Protection Office of Professional Responsibility (CBP OPR) are investigating this case. Assistant United States Attorney Matthew Watters is prosecuting this case on behalf of the Government.
It is important to note that a criminal complaint is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
28 Arrested in Killeen and Waco on Federal Drug Trafficking ChargesRead the Press Release
This morning, federal and state authorities arrested 22 individuals for their alleged roles in a narcotics distribution activities in the Waco and Killeen areas, 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.
Those arrested today, along with six others who were already in custody, are charged in two separate federal grand jury indictments unsealed today in Waco.
GABRIEL LUNA, et al. INDICTMENT – W18cr259
This indictment charges nine defendants with conspiracy to possess with intent to distribute controlled substances including cocaine, “crack” cocaine or methamphetamine. Individuals charged in this indictment include:
Name Age Residence Statutory Maximum Penalty
Gabriel Luna 30 Katy, TX 10 years to life imprisonment
Samuel Earl Smith 44 Killeen 10 years to life imprisonment
Jomar Kenyatta Bush 44 Killeen 10 years to life imprisonment
Jeffrey Ellis 33 Killeen 5-40 years imprisonment
Donovan Lafurd Ray Jacobs 25 Killeen 5-40 years imprisonment
Joshua Deanthony Bailey 29 Killeen up to 20 years imprisonment
Derrick L. Jacques (aka “Flexx”) 41 Killeen 5-40 years imprisonment
Terrell Jefferson 32 Killeen 5-40 years imprisonment
**Leonta Odell Gladden 30 Killeen 5-40 years imprisonmentThe defendants are all Gangster Disciples members, led by Derrick Jacques, or their associates. The indictment alleges that these defendants distributed narcotics in Killeen and the surrounding areas since October 2015. Defendants Luna, Smith, Bush, Ellis and Jacobs allegedly conspired to distribute methamphetamine. Defendants Luna, Smith, Jacobs and Bailey allegedly conspired to distribute cocaine. Defendants Smith, Jacques, Jefferson, and Gladden allegedly conspired to distribute “crack” cocaine.
DANIEL LOUIS LOPEZ, et al. INDICTMENT – W18cr257
This indictment charges 19 defendants with conspiracy to possess with intent to distribute methamphetamine. Individuals charged in this indictment include:
Name Age Residence Statutory Maximum Penalty
**Daniel Louis Lopez 38 Waco 10 years to life imprisonment
Ruben Ceja-Sanchez 31 Dallas 10 years to life imprisonment
Gary Keith Mahan, Jr. 37 McGregor, TX 10 years to life imprisonment
Michael Trinidad Carbajal 38 Waco 10 years to life imprisonment
**Amy Michelle Tedder 32 Waco 10 years to life imprisonment
Joe Victor Monzon 35 Waco 10 years to life imprisonment
**Ruben Arnold Mondragon 32 Waco 10 years to life imprisonment
Patricia Ann Navarro-Eaton 46 Waco 5 to 40 years imprisonment
Michael Martinez 47 Waco 5 to 40 years imprisonment
**Cory Allen Kussmaul 28 Waco 5 to 40 years imprisonment
Darnell O’Shea McCoy 35 Waco 5 to 40 years imprisonment
Charlotte Nicole O’Neal 33 Waco 5 to 40 years imprisonment
Augustin Ariel Camacho 36 Waco 5 to 40 years imprisonment
Daniel Alan Tummins 35 Waco 5 to 40 years imprisonment
Francisco Farias, III 55 Waco 5 to 40 years imprisonment
Magan Danielle Shuemake 29 Waco 5 to 40 years imprisonment
Polly Estes 42 Waco up to 20 years imprisonment
Stephanie Nicole Davis 31 Midlothian, TX up to 20 years imprisonment
**Trey Allen Cartwright 36 Waco up to 20 years imprisonment** Already in custody prior to today
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.
In addition to the arrests, these investigations have resulted in the seizure of approximately $16,000 in U.S. Currency, over five pounds of methamphetamine and 22 firearms.
All of the defendants remain in federal custody pending detention hearings expected to occur next week before U.S. Magistrate Judge Jeffrey Manske in Waco.
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, Christopher Blanton and Stephanie Smith-Burris are prosecuting these cases 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.
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.
Texas Mexican Mafia Members Sentenced to Life in Federal Prison for Role in 2014 Death of Balcones Heights Police Officer Julian PesinaRead the Press Release
In San Antonio today, United States District Judge Xavier Rodriguez sentenced Texas Mexican Mafia (TMM) members Jesse Santibanez and Alfredo Cardona to life in federal prison for their roles in the murder of Balcones Heights Police Officer Julian Pesina in 2014, announced United States Attorney John F. Bash; FBI Special Agent in Charge Christopher Combs, San Antonio Division; Texas Department of Public Safety Director Steve McCraw; and, San Antonio Police Chief William McManus.
In November 6, 2017, a federal jury convicted Santibanez, age 30, and Cardona, age 37, of one count of murder in aid of racketeering and one count of discharging a firearm during a murder in aid of racketeering. On November 9, 2017, Judge Rodriguez sentenced 38-year-old former TMM Sergeant Jerry Idrogo to 20 years in federal prison after he pleaded guilty to a racketeering conspiracy charge that included Pesina’s murder. Another TMM member, Ruben Reyes (aka “Menace”), pleaded guilty in July 2016 to similar charges that included this murder and four others. Reyes is currently serving five consecutive life-imprisonment sentences.
Evidence presented during trial revealed that acting upon an order by Reyes, Santibanez and Cardona murdered Pesina on May 4, 2014, in front of his business, the Notorious Ink Tattoo and Piercing Studio, located on Hillcrest Drive.
Testimony during trial revealed that Pesina had claimed membership in the TMM, was selling narcotics and paying the “dime” (the 10% street tax) to the TMM, when the TMM learned that Pesina was a Balcones Heights Police Officer. On May 4, 2014, Idrogo contacted Pesina and arranged for pickup of the “dime” outside of Pesina’s tattoo shop. Just before meeting Pesina, Idrogo dropped off Santibanez and Cardona on the side of the building. Once Pesina walked up to the car and handed Idrogo the “dime” payment money, Santibanez and Cardona came around the corner and shot and killed Pesina.
The FBI together with the Texas Department of Public Safety, the San Antonio Police Department and the Bexar County Sheriff’s Office investigated this case.
FBI Agents Arrest Tucson Lawyer and his Assistant on Federal Obstruction of Justice Related ChargesRead the Press Release
This morning in Tucson, AZ, FBI agents arrested a local attorney and his assistant for allegedly obstructing justice, tampering with a witness and assisting an offender in avoiding apprehension in a criminal case, announced United States Attorney John F. Bash of the Western District of Texas and FBI Special Agent in Charge Michael DeLeon, Phoenix Field Office.
A federal grand jury indictment unsealed today charges 59-year-old Rafael F. Gallego and his 39-year-old assistant, Ricardo Gallego, with one count of conspiracy to obstruct justice; one count of conspiracy to commit false statements; one substantive count of obstruction of justice; one count of accessory after the fact; and, one count of conspiracy to tamper with a witness.
The indictment alleges that from January 2017 to October 2017, the defendants conspired to corruptly effect the administration of justice in a criminal matter pending in the United States District Court for the District of Arizona. The indictment alleges that the defendants provided false information to Homeland Security Investigations (HSI) agents, U.S. Customs and Border Protection (CBP) agents and an Assistant U.S. Attorney in the District of Arizona. The indictment further alleges that the defendants, having knowledge of the commission of a drug trafficking offense, provided assistance to the offender in order to hinder and prevent the offender’s apprehension, trial and punishment. The indictment also alleges that the defendants conspired to corruptly persuade an individual to provide false information to law enforcement investigators.
Upon conviction, the defendants face up to 20 years in federal prison for witness tampering; up to ten years in federal prison for obstruction of justice; and, up to five years in federal prison for the remaining conspiracy charges.
The FBI Phoenix Field Office’s Tucson Resident Agency is investigating this case with the assistance of HSI and CBP. The Pima County Sheriff’s Department assisted with today’s operation. Assistant U.S. Attorney Daphne Newaz of the Western District of Texas is prosecuting this case on behalf of the Government.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendants are considered innocent until proven guilty in a court of law.
Former Presidio County Commissioner Enters Guilty to Federal Bribery Related ChargeRead the Press Release
In Midland today, former Presidio County Precinct 3 Commissioner Lorenzo Padilla Hernandez admitted to defrauding the citizens of Presidio County by taking bribes while in office in return for his support and vote on a County contract, announced United States Attorney John F. Bash and FBI Special Agent in Charge Emmerson Buie, Jr., El Paso Division.
Appearing before United States District Judge David Counts, Hernandez pleaded guilty to one count of conspiracy to commit mail fraud, wire fraud and deprivation of honest services. By pleading guilty, Hernandez admitted that from August 2015 to June 2017, he conspired to collect approximately $19,800 in bribes from a federal agent acting in an undercover capacity. In exchange for the money, Hernandez agreed to support and vote on May, 9, 2017, for a Presidio County document management services contract to be awarded to a specific company.
Hernandez faces up to 20 years in federal prison. He remains on bond pending sentencing scheduled for November 19, 2018, in Pecos, TX.
Hernandez’s co-defendant, 66-year-old Carlos Eduardo Nieto, former Special Projects Coordinator for the City of Presidio and former Presidio Independent School District trustee, is charged by indictment with one count of conspiracy to commit mail and wire fraud and one count of mail fraud and the deprivation of honest services. Jury selection and trial is scheduled for October 16, 2018, in Pecos before Judge Counts.
The indictment in this case alleges that Nieto also solicited and received $8,300 in bribes for using his position and influence to secure that same contract for that specific company.
Upon conviction, Nieto faces up to 20 years in federal prison. An indictment is merely a charge and should not be considered as evidence of guilt. Nieto is presumed innocent until proven guilty in a court of law.
The FBI, with assistance from Homeland Security Investigations (HSI) and the Texas Department of Public Safety Criminal Investigations Division, investigated this case. Individuals who have first-hand information about corruption, fraud, or bribery related to Presidio County are urged to contact the FBI at (915) 835-5000.
Assistant United States Attorneys William F. Lewis and Monty Kimball are prosecuting this case on behalf of the Government.
El Paso Drug Trafficking Brothers Sentenced to Federal PrisonRead the Press Release
In El Paso, a federal judge sentenced two brothers to decades in federal prison for their roles in an El Paso-based drug trafficking organization announced United States Attorney John F. Bash; FBI Special Agent in Charge Emmerson Buie, Jr., El Paso Division; and, Special Agent in Charge Kyle W. Williamson, U.S. Drug Enforcement Administration (DEA), El Paso Division.
During a hearing held yesterday, United States District Judge David C. Guaderrama sentenced 39–year-old Oscar Fierro-Sanchez and 38–year-old Ricardo Fierro-Sanchez to 40 years and 20 years, respectively, in federal prison followed by ten years of supervised release. Judge Guaderrama also ordered that the defendants forfeit to the Government approximately $7,000 in U.S. Currency, a 2014 Chevrolet Corvette Stingray and their El Paso residences (combined value is approximately $500,000). Judge Guaderrama also ordered that Oscar Fierro-Sanchez pay a monetary judgment in the amount of $205,000.
In April 2018, the brothers entered guilty pleas. Oscar Fierro-Sanchez pleaded guilty to one count of conspiracy to possess with intent to distribute a controlled substance. Ricardo Fierro-Sanchez pleaded guilty to one count of possession with intent to distribute a controlled substance and one count of maintaining drug involved premises.
By pleading guilty, the brothers admitted that from January 2015 to April 2017, they ran a large-scale drug distribution operation out of their residences that involved hundreds of kilograms of heroin, cocaine and marijuana.
“Combating transnational drug trafficking organizations is one of the top criminal priorities of the El Paso FBI. This investigation is an outstanding example of joint cooperation between the FBI and the DEA working together to have a positive impact on keeping our communities safer,” said FBI El Paso Special Agent in Charge Buie.
“The sentencing of Oscar and Ricardo Fierro-Sanchez sends a message to all who engage in the distribution of illegal drugs. This case highlights the impact that multiple agencies can have when they join forces to combat this illicit trade by holding those responsible accountable to the community,” said DEA El Paso Division Special Agent in Charge Williamson.
These sentences resulted from an investigation by the FBI/DEA Strike Force. The Strike Force is a multi-agency task force established to disrupt and dismantle major drug trafficking organizations. The El Paso Police Department and the El Paso County Sheriff’s Office assisted with this investigation.
El Paso Drug Stash House Operator Sentenced to Federal PrisonRead the Press Release
In El Paso yesterday, United States District Judge David C. Guaderrama sentenced 33–year-old Javier Chanet Navarro to ten years in federal prison on drug trafficking and firearms charges announced United States Attorney John F. Bash; FBI Special Agent in Charge Emmerson Buie, Jr., El Paso Division; and, Special Agent in Charge Kyle W. Williamson, U.S. Drug Enforcement Administration (DEA), El Paso Division.
On March 6, 2018, Navarro pleaded guilty to a four-count Information charging him with two counts of conspiracy to distribute and controlled substance, one count of use of a firearm during a drug trafficking crime, and one count of being a convicted felon in possession of a firearm.
According to court records, from June 2015 to September 2017, Navarro and others conspired to distribute more than 1,000 kilograms of marijuana. They also conspired in September 2017 to distribute more than five kilograms of cocaine. Authorities arrested Navarro on September 22, 2017. Subsequently, authorities discovered a .45 caliber pistol and 26 kilograms of cocaine on Navarro’s property. Navarro’s criminal history includes a 2006 felony conviction in El Paso County for possession of marijuana.
“Crime doesn't stop at international borders, as such, the FBI works closely with our law enforcement partners to have a positive impact at our local level. This sends a strong and unified message that drug trafficking, at all levels, will not be tolerated,” stated FBI El Paso Division Special Agent in Charge Buie.
“The sentencing of Chanet Navarro exemplifies the commitment of law enforcement's battle against drug trafficking organizations throughout the world,” said DEA El Paso Division Special Agent in Charge Williamson.
This sentence is the result of an investigation by the FBI/DEA Strike Force. The Strike Force is a multi-agency task force established to disrupt and dismantle major drug trafficking organizations. Homeland Security Investigations (HSI), U.S. Border Patrol, U.S. Customs and Border Protection and the El Paso Police Department assisted with this investigation.
Odessa Tax Return Preparer Sentenced to Two Years in Federal PrisonRead the Press Release
In Midland today, a federal judge sentenced Markinson Auguste, owner of YeYe Tax and Multi Services in Odessa, to two years in federal prison for a scheme to defraud the Internal Revenue Service (IRS), announced United States Attorney John F. Bash and IRS-Criminal Investigation Special Agent in Charge Richard D. Goss, Houston Field Office.
In addition to the prison term, United States District Judge David Counts ordered Auguste to pay a $10,000 fine and restitution in the amount of $251,942 to the IRS.
On April 23, 2018, Auguste pleaded guilty to one count of aiding or assisting in the preparation of a fraudulent federal income tax return. By pleading guilty, Auguste admitted to preparing hundreds of fraudulent tax returns from 2012 and 2016. According to court records, Auguste’s scheme involved adding just enough false income to the lower income tax returns he prepared for his clients, so that those clients would qualify for higher amounts of earned income tax credit. Auguste benefited through both the tax preparation fees as well as receiving a portion of the fraudulent refunds as a kickback. Auguste also claimed unauthorized dependents on other fraudulent tax returns in order to increase tax refunds, and then directed those tax refunds into bank accounts that he controlled.
IRS-Criminal Investigation agents investigated this case. Assistant United States Attorney Glenn Harwood prosecuted this case on behalf of the Government.
Jordanian National Arrested in New York to Face Charges for a Conspiracy to Bring Aliens into the United StatesRead the Press Release
WASHINGTON – A Jordanian national residing in Monterrey, Mexico was arrested Saturday on arrival at JFK International Airport to face a criminal complaint issued in the Western District of Texas for his role in a scheme to smuggle special interest aliens from Mexico into the United States.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney John F. Bash of the Western District of Texas and Special Agent in Charge Shane M. Folden of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) San Antonio made the announcement.
On May 29, an arrest warrant was issued pursuant to a criminal complaint, which alleges that in the later half of 2017, Moayad Heider Mohammad Aldairi, 31, conspired with others to smuggle six Yemeni nationals across the Texas border and into the United States in exchange for a fee.
Aldairi was presented today before U.S. Magistrate Judge Marilyn D. Go in the Eastern District of New York for his initial appearance. At the hearing, Judge Go ordered that Aldairi be held pending transfer to the Western District of Texas for further criminal proceedings.
“Aldairi allegedly smuggled six Yemeni citizens across the Mexican border and into the United States,” said Assistant Attorney General Benczkowski. “Alien smuggling puts our national security at risk, and the Criminal Division is dedicated to enforcing our immigration laws and disrupting the flow of illegal aliens into the United States.”
“The arrest of Aldairi showcases HSI’s unique ability to coordinate investigative efforts across international boundaries with multiple countries and different agencies throughout the U.S. Government,” said HSI Special Agent in Charge Folden. “Attacking the leader/organizers of illicit international pathways for aliens from certain countries of interest will always be a priority of HSI.”
This case is being investigated by HSI Eagle Pass, with assistance from HSI New York, HSI Jordan and the U.S. Embassy of Jordan. The investigation is being conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI. The ECT program focuses on human smuggling networks that may present particular national security or public safety risks, or present grave humanitarian concerns. ECT has dedicated investigative, intelligence and prosecutorial resources. ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.
This case is being prosecuted by Trial Attorney James Hepburn of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Matthew Watters of the Western District of Texas.
The charges contained in the complaint are merely allegations and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Nigerian National Sentenced to 14 Years in Federal Prison for Fraud and Money Laundering SchemesRead the Press Release
In Austin today, a federal judge sentenced 42-year-old Nigerian National and Canadian resident Ochuko Sylvester Eruotor to 168 months in federal prison for his leadership role in multi-million dollar fraud and money laundering schemes, announced United States Attorney John F. Bash and Special Agent in Charge Shane M. Folden, Homeland Security Investigations (HSI), San Antonio Division; Special Agent in Charge Richard D. Goss, Internal Revenue Service-Criminal Investigation (IRS-CI), Houston Field Office; and, Inspector in Charge Adrian Gonzalez, United States Postal Inspection Service (USPIS), Houston Division.
In addition to the prison term, United States District Judge Sam Sparks ordered Eruotor to pay restitution in the amount of $1,672,805.51 and be placed under supervised release for a period of three years after completing his prison term.
“If you are a foreign national contemplating defrauding vulnerable Americans from abroad, know this: We will identify you, find you, bring you here, prosecute you, and punish you. Your location abroad will not save you,” said U.S. Attorney John F. Bash.
In December 2017, Eruotor was extradited from Germany to the United States after being arrested with assistance from Interpol. On February 1, 2018, Eruotor pleaded guilty to one count of conspiracy to commit money laundering in furtherance of the fraudulent schemes.
Court documents showed that this investigation targeted a money laundering network that laundered the proceeds of various fraud schemes perpetrated against U.S. victims by scammers based in Canada, Nigeria, and the United States. The schemes included: “grandson-in-jail” frauds over the phone targeting elderly victims; fake investment scams; business email compromise scams; Stolen Identity Refund Fraud (SIRF) tax filing scams; and, romance victim scams.
The money launderers opened bank accounts, sometimes using fraudulent passports in false names, or hired others to open bank accounts in order to facilitate their scheme. Those U.S.-based bank accounts would receive the fraudulently obtained funds from the victims. The U.S.-based conspirators quickly withdrew the money from the bank accounts with a portion of the fraud proceeds kept as a fee. Then the remainder of the funds were sent to Canada or Nigeria. To date, law enforcement has identified in excess of $3.5 million dollars of fraud proceeds from hundreds of victims laundered by the conspiracy.
“Financial crimes and identity theft have a devastating effect on the victims and our financial institutions. HSI and its enforcement partners will continue to do everything possible to stop this kind of fraud,” said Shane Folden, Special Agent in Charge for HSI San Antonio. “The defendant exploited people for his own personal gain.”
“The Postal Inspection Service takes it very seriously when the U.S. Mail is used to defraud innocent American citizens, especially our elderly. The sentence handed down today is the result of our ongoing mission to prosecute those who commit these types of fraud schemes. We would like to thank all of the other agencies that worked so diligently to bring justice to the victims of this criminal enterprise,” said USPIS Inspector in Charge Adrian Gonzalez.
Eruotor is the eighth defendant to be convicted and sentenced to federal prison as a result of this investigation. Other prison terms handed down range from ten months to 108 months.
Agents with HSI, IRS-CI, and UPSIS investigated this case. The U.S. Marshals Service and D.O.J.’s Office of International Affairs provided valuable assistance with respect to the extradition. Assistant U.S. Attorney Michael C. Galdo prosecuted this case on behalf of the Government.
Federal Authorities Arrest Two Former Bexar County Jail Guards for Conspiring to Smuggle Contraband to InmatesRead the Press Release
In San Antonio today, two former detention officers at the Bexar County Adult Detention Center (BCADC) face federal charges for their alleged scheme to smuggle methamphetamine to inmates, announced United States Attorney John F. Bash; FBI Special Agent in Charge Christopher Combs, San Antonio Division, and Bexar County Sheriff Javier Salazar.
A four count federal grand jury indictment unsealed today charges 29–year-old Gabriel Robert Ortiz and 26–year-old Ruben Hernandez with one count of conspiracy to possess with intent to distribute methamphetamine. Ortiz is also charged with three substantive counts of attempted possession with intent to distribute methamphetamine. Hernandez is also charged with one substantive count of attempted possession with intent to distribute methamphetamine
The indictment alleges that the defendants carried out their alleged scheme from May 4, 2018, until June 22, 2018.
Upon conviction, the defendants face up to 20 years in federal prison.
The FBI and the Bexar County Sheriff’s Office is investigating this case. Assistant United States Attorney Greg Surovic is prosecuting this case on behalf of the Government.
It is important to note that a federal grand jury 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
Third Defendant Enters Guilty Plea in Case Involving the Shooting of a U.S. Mail CarrierRead the Press Release
In San Antonio today, 41-year-old Piper Lee of San Antonio, pleaded guilty to federal charges in connection with the shooting of a U.S. Mail carrier last year in Spring Branch, TX, announced United States Attorney John F. Bash; Inspector in Charge Adrian Gonzalez, U.S. Postal Inspection Service, Houston Division; and, San Antonio Police Chief William McManus.
Appearing before United States Magistrate Judge Richard B. Farrer, Lee pleaded guilty to two counts of aiding and abetting the assault of a federal officer and one count of possession of stolen mail. Lee, who remains in federal custody, faces up to 20 years in federal prison. Sentencing is scheduled for November 1, 2018, before Chief United States District Judge Orlando Garcia.
According to court records, on February 11, 2017, Lee’s co-defendant, 24-year-old Bradley Ahearn, shot a shot a female U.S. Mail carrier as she was delivering mail to a cluster of mailboxes in Spring Branch, TX. The victim is still recovering from the gunshot that pierced both of her legs. Ahearn and another co-defendant, 27-year-old Sarah Richford, fled the scene. Lee was not charged with participating in that shooting.
On February 14, 2017, employees of a local motel notified investigators of the presence of a large amount of U.S. Mail and a handgun case in one of the motel rooms. Much of the discovered mail, originating from locations across the country, was destined for addresses in the Spring Branch, TX area. Motel surveillance footage showed Lee picking up Ahearn and Richford and leaving the motel in Lee’s yellow Volkswagen. Investigators requested San Antonio police to initiate a stop of the vehicle. While failing to yield to SAPD officers, Ahearn began shooting at the police officers and another high-speed pursuit ensued. Ultimately, the defendants abandoned their vehicle inside a parking garage of a local mall and managed to elude capture by law enforcement.
On February 15, 2017, San Antonio police officers, acting on information provided to investigators, arrested Ahearn, Richford and Lee without incident in a parking lot of a different local motel.
Richford, who remains in federal custody, is scheduled to be sentenced on September 6, 2018. She faces 20 years in federal prison after pleading guilty on February 23, 2018, to five charges--aiding and abetting carjacking; aiding and abetting use of a firearm during a crime of violence; aiding and abetting robbery of U.S. Mail; and, two counts of aiding and abetting assault on a federal officer.
On July 12, 2018, Ahearn was sentenced to 20 years in federal prison after pleading guilty to seven charges including aiding and abetting carjacking; aiding and abetting use of a firearm during a crime of violence; aiding and abetting robbery of U.S. Mail; and, four counts of aiding and abetting assault on a federal officer.
The U.S. Postal Inspection Service together with the San Antonio Police Department, Texas Department of Public Safety, Texas Rangers, Comal County Sheriff’s Office, Bulverde Police Department, Federal Bureau of Investigation, U.S. Marshals Service and Homeland Security Investigations (HSI) investigated this case. Assistant United States Attorneys Bettina Richardson and Christina Playton are prosecuting this case on behalf of the Government.
Federal Jury in Waco Finds Leader of Cartel del Noreste and Nephew of Los Zetas Leaders Z-40 and Z-42 Guilty on All ChargesRead the Press Release
In Waco today, a federal jury convicted 38-year-old Juan Francisco “Kiko” Trevino Chavez, nephew of Los Zetas leaders Miguel Angel Trevino Morales (Z-40) and Oscar Omar Trevino Morales (Z-42), of drug trafficking, firearms and money laundering charges, announced United States Attorney John F. Bash; Special Agent in Charge Shane Folden, Homeland Security Investigations, San Antonio Division; Acting Special Agent in Charge Richard Goss, Internal Revenue Service—Criminal Investigations, San Antonio Division; Special Agent in Charge Will Glaspy, Drug Enforcement Administration, Houston Division; Special Agent in Charge Fred Milanowski, Bureau of Alcohol, Tobacco, Firearms & Explosives—Houston Division; and, Special Agent in Charge Christopher Combs, Federal Bureau of Investigation, San Antonio Division.
Jurors convicted the defendant on one count each of conspiracy to possess marijuana with intent to distribute,conspiracy to import marijuana, unlawful distribution of controlled substances (extra-territorial), conspiracy to possess cocaine with intent to distribute, conspiracy to import cocaine, conspiracy to possess firearms in furtherance of drug trafficking, and conspiracy to commit money laundering.
Evidence presented at trial revealed that from 2004 until September 2016, the defendant was a member of the Los Zetas, a transnational drug trafficking organization operating primarily in the Mexican corridors of Nuevo Laredo, Tamaulipas, Ciudad Acuna and Piedras Negras, Coahuila. Evidence further revealed that Kiko Trevino met with and conspired with the highest level operatives in the criminal organization, including his uncles, Z-40 and Z-42. Evidence also revealed that Kiko Trevino organized the source and distribution of large quantities of narcotics, laundered drug proceeds, and controlled cells of traffickers and a group of armed sicarios in the Nueva Laredo area. The trial evidence showed the Defendant participated in the trafficking of more than 250,000 kilos of cocaine, hundreds of thousands of kilos of marijuana, and 800 firearms. The evidence further described the laundering of hundreds of millions of dollars in drug proceeds. Finally, trial testimony revealed that after his uncles’ arrests, Los Zetas splintered into two groups and Kiko Trevino took over leadership of one of those two groups, the Cartel Del Noreste (CDN), and in this role controlled all of the drug and firearm trafficking, enforcement, and money laundering operations of CDN. Trevino continued in this leadership role until his arrest in 2016.
Kiko Trevino has remained in federal custody since his arrest in Baytown, TX, on September 28, 2016. He faces up to life in federal prison. The date for sentencing has not yet been set. U.S. District Judge Alia Moses in Waco will announce a date for sentencing at a later date.
These federal and state charges resulted from an Organized Crime Drug Enforcement Task Force (OCDETF) investigation conducted by Homeland Security Investigations, Internal Revenue Service—Criminal Investigations, the Drug Enforcement Administration—HIDTA Group, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms & Explosives, the United States Marshals Service, the Texas Rangers, the Texas Department of Public Safety, the Irving Police Department, the Waco Police Department, the Laredo Police Department, and the Leon Valley Police Department. The United States Border Patrol, Customs and Border Protection—Office of Enforcement Operations, and the Natalia Police Department also provided support in this case.
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 Grand Jury Indicts Driver and Four Others Involved in Dimmit County Crash that Resulted in Deaths of Five Illegal AliensRead the Press Release
In Del Rio today, a federal grand jury indicted five (5) individuals, including 20–year-old Jorge Luis Monsivais, Jr., of Eagle Pass, TX, for their roles in a smuggling scheme that resulted in the deaths of five (5) illegal aliens, announced United States Attorney John F. Bash, U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden, U.S. Border Patrol Del Rio Sector Chief Patrol Agent Felix Chavez and Dimmit County Sheriff Marion Boyd.
The six-count indictment charges Monsivais, 55-year-old Mexican citizen Marcial Gomez Santana; and occupants, 45-year-old Mexican citizen Mariela Reyna; Marcial’s son, 21-year-old Rudy Gomez of Hockley, TX; and, Marcial’s daughter, 19-year-old Johana Gomez of Houston, TX, with one count of conspiracy to transport illegal aliens resulting in death, one count of conspiracy to transport and harbor illegal aliens resulting in serious bodily injury, and one count of conspiracy to harbor illegal aliens. The indictment also charges Monsivais with one substantive count of transportation of illegal aliens resulting in death and one substantive count of transportation of illegal aliens resulting in serious bodily injury. The indictment also charges Santana, Reyna, Rudy and Johana Gomez with one count of harboring illegal aliens for private financial gain.
All five charged in the indictment remain in custody. Upon conviction, the defendants face up to life imprisonment or death, a $250,000 fine, and five years of supervised release.
On June 17, 2018, U.S. Border Patrol agents initiated immigration inspections on three vehicles traveling in a convoy on FM 2644 between El Indio, TX and Carrizo Springs, TX. Monsivais led Border Patrol agents and Dimmit County Sheriff’s deputies on a high speed chase. While traveling east bound on Highway 85, Monsivais crashed as he entered the town of Big Wells, TX. Of 13 illegal aliens traveling with Monsivais at the time of the crash, four of them died at the scene and nine were transported to a hospital for medical care. One died on the way to the hospital. U.S. Border Patrol agents detained a total of 23 illegal aliens involved in this scheme--21 Mexican nationals and two (2) Honduran nationals.
The U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) is leading this investigation together with the U.S. Customs and Border Protection’s Border Patrol—Del Rio Sector and the Dimmit County Sheriff’s Office. Assistant United States Attorney Paul Harle is prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are considered innocent until proven guilty in a court of law.
Fifth Circuit Court of Appeals Upholds 4-Year Prison Term for Gameday Entertainment Chairman of the Board who Defrauded San Antonio Victim of Millions of DollarsRead the Press Release
The Fifth Circuit Court of Appeals has affirmed a four-year federal prison sentence handed down in June 2017 to 50-year-old investment counselor Charles Augustus Banks, IV, an executive with Gameday Entertainment, LLC (Gameday), for defrauding a San Antonio victim of millions of dollars announced U.S. Attorney John F. Bash.
In an unpublished opinion (No. 17-50654) filed yesterday, the Court affirmed the district court’s actual-loss calculation of $13.5 million and upheld the district court’s application of a sentencing enhancement because Banks’ scheme derived more than $1 million in gross receipts from one or more financial institutions.
On June 28, 2017, United States District Judge Fred Biery sentenced Banks to four years in federal prison. He also ordered Banks to pay $7.5 million in restitution. After sentencing, Banks filed an appeal of the sentence. Since then, the government has recovered full restitution on behalf of the victim in this case.
“I am very pleased that our prosecutors and appellate team were able to obtain justice and restitution for the victim in this case,” said U.S. Attorney Bash.
According to court records, Banks encouraged the victim to loan $7.5 million to Gameday in 2012. Subsequently, Banks encouraged the victim to personally guarantee another $6 million loan made to Gameday by Comerica Bank in 2013. During this time frame, Banks was Chairman of the Board of Gameday and personally benefitted, in the form of millions of dollars in loans and commissions, from the proceeds of these loans made to Gameday.
On April 3, 2017, Banks pleaded guilty to one count of wire fraud. By pleading guilty, Banks admittedly manipulated the victim into guaranteeing Gameday’s $6 million debt by misrepresenting the true nature of the transaction. Furthermore, Banks failed to fully disclose the commissions, payments and loans he was receiving from Gameday that were specifically tied to these transactions. On June 26, 2013, Banks also caused two pages relating to the $6M loan guarantee and subordination agreements, which contained his victim’s signature, to be faxed from San Antonio to Bank’s employees in California and Comerica bank employees in California.
The FBI conducted this investigation. Assistant United States Attorney Gregory J. Surovic and Tom Moore prosecuted this case on behalf of the Government. Assistant United States Attorneys Elizabeth Berenguer and Joseph Gay handled the appeal.
Austin-Based Nigerian Money Launderer Sentenced to Federal Prison for Romance ScamsRead the Press Release
In Austin today, a federal judge sentenced 34–year-old Nigerian National Kingsley Otuya to 135 months in federal prison for a million dollar plus fraud and money laundering scheme involving romance scams announced United States Attorney John F. Bash and Special Agent in Charge Shane M. Folden, Homeland Security Investigations (HSI), San Antonio Division.
In addition to the prison term, United States District Judge Robert Pitman ordered Otuya to pay restitution in the amount of $966,617.31 and be placed under supervised release for a period of three years after completing his prison term.
“This case brutally illustrates how fraud schemes hurt victims not only financially but also emotionally,” said U.S. Attorney John F. Bash. “We will remain steadfast in our efforts to protect Americans from transnational criminal conspiracies.”
In April 2018, Otuya pleaded guilty to one count of conspiracy to commit money laundering. According to court records, authorities began investigating Otuya as part of a series of investigations based in Austin into the activities of West African Fraud Schemes. In Otuya’s case, the funds were primarily derived from romance and investment fraud schemes. The conspiracy scammed American citizens out of over $1 million. Otuya acted as a “catcher,” one of the individuals responsible for quickly withdrawing fraudulently obtained funds from bank accounts where the victims deposited their funds. Otuya used fake passports to open nine different bank accounts in false names in Austin and often structured his withdrawals to amounts under $10,000 so as to avoid bank reporting requirements. Otuya would then send the money to coconspirators before the victim attempted to recover their funds. Otuya was paid a fee for the fraud proceeds that flowed through his accounts. Court records indicated that multiple victims faced serious financial hardship as a result of these schemes and that one of the victims who sent money to Otuya took her own life after losing hundreds of thousands of dollars and being emotionally devastated by a romance scam. Court records indicate that Otuya faces likely deportation back to Nigeria as a result of this conviction.
“Today’s sentence shows how aggressively HSI investigates financial crimes, and its commitment to bring to justice those who perpetrate them,” said Special Agent in Charge Folden. “The people behind these transnational fraud schemes robbed people of more than $1 million, and our special agents are committed to protect the public and the integrity of our financial system.”
HSI agents conducted this investigation along with assistance from Immigration and Customs Enforcement (ICE)--Enforcement and Removal Operations (ERO), United States Postal Inspection Service (USPIS) and U.S. State Department Diplomatic Security Service (DSS). Assistant United States Attorney Michael C. Galdo prosecuted this case on behalf of the Government.
San Antonio Man Sentenced to Federal Prison for Shooting a U.S. Mail CarrierRead the Press Release
In San Antonio today, a federal judge sentenced 24-year-old Bradley Ahearn to 20 years in federal prison for shooting a U.S. Mail carrier last year in Spring Branch, TX, announced United States Attorney John F. Bash; Inspector in Charge Adrian Gonzalez, U.S. Postal Inspection Service, Houston Division; and, San Antonio Police Chief William McManus.
In addition to the prison term, Chief United States District Judge Orlando Garcia ordered that Ahearn pay $13,540.88 in restitution and be placed on supervised release for a period of five years after completing his prison term.
On February 22, 2018, Ahearn pleaded guilty to seven a total of seven federal charges including aiding and abetting carjacking; aiding and abetting use of a firearm during a crime of violence; aiding and abetting robbery of U.S. Mail; and, four counts of aiding and abetting assault on a federal officer.
By pleading guilty, Ahearn admitted that on February 11, 2017, he shot a female U.S. Mail carrier as she was delivering mail to a cluster of mailboxes in Spring Branch, TX, because the victim would not give him her cell phone. The victim is still recovering from the gunshot that pierced both of her legs. Ahearn left the scene in the victim’s pickup truck while it still contained the victim’s purse and personal effects as well as a considerable amount of U.S. Mail. According to court records, Ahearn’s co-defendant, 27-year-old Sarah Richford, followed Ahearn in a maroon/brown colored Toyota Venza as he left the scene.
Two days after the shooting, a U.S. Postal Inspector spotted the Toyota Venza at a restaurant near the location of the shooting. The Postal Inspector attempted to initiate an investigative stop, but was unsuccessful as Ahearn fired a handgun in the direction of the federal officer. Ahearn admitted to firing his weapon at the U.S. Postal Inspector and another federal agent during a subsequent 19-mile-long, high-speed pursuit. Ahearn and Richford managed to avoid capture.
According to court records, on February 14, 2017, employees of a local motel notified investigators of the presence of a large amount of U.S. Mail and a handgun case in one of the motel rooms. Much of the discovered mail, originating from locations across the country, was destined for addresses in the Spring Branch, TX area. That same day, not far from the motel, investigators recovered the abandoned Toyota Venza. From motel surveillance footage, investigators discovered Ahearn, Richford and 41-year-old Piper Lee leave the motel in Lee’s yellow Volkswagen and requested San Antonio police to initiate a stop of the vehicle. While failing to yield to SAPD officers, Ahearn began shooting at the police officers and another high-speed pursuit ensued. Ultimately, the defendants abandoned their vehicle inside a parking garage of a local mall and managed to elude capture by law enforcement.
On February 15, 2017, San Antonio police officers, acting on information provided to investigators, arrested Ahearn, Richford and Lee without incident in a parking lot of a different local motel.
Richford, who remains in federal custody, is scheduled to be sentenced on September 6, 2018. She faces 20 years in federal prison after pleading guilty on February 23, 2018, to five charges--aiding and abetting carjacking; aiding and abetting use of a firearm during a crime of violence; aiding and abetting robbery of U.S. Mail; and, two counts of aiding and abetting assault on a federal officer.
Lee, who also remains in federal custody, is charged with two counts of aiding and abetting the assault of a federal officer; one count of aiding and abetting use of a firearm during a crime of violence; and, one count of possession of stolen mail. He is currently set for jury selection on August 20, 2018, before Chief U.S. District Judge Orlando L. Garcia.
It is important to note that an indictment is merely a charge and should not be evidence of guilt. A defendant is considered innocent until proven guilty in a court of law.
The U.S. Postal Inspection Service together with the San Antonio Police Department, Texas Department of Public Safety, Texas Rangers, Comal County Sheriff’s Office, Bulverde Police Department, Federal Bureau of Investigation, U.S. Marshals Service and Homeland Security Investigations (HSI) investigated this case. Assistant United States Attorneys Bettina Richardson and Christina Playton are prosecuting this case on behalf of the Government.
New Hampshire Man Charged with Laundering Money Stolen from Texas RetireesRead the Press Release
Federal and state authorities arrested 34-year-old Lukman Shina Aminu in Manchester, NH, today for his alleged scheme to launder thousands of dollars from multiple fraudulent schemes, including thousands stolen from former Texas state employees retirement plans, announced United States Attorney John F. Bash, Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division, and Texas Department of Public Safety Director Steven McCraw.
A federal complaint unsealed in Austin today charges Aminu with one count of conspiracy to commit money laundering. The complaint alleges that beginning in June 2017, personally identifiable information (PII) from state employees was used to make changes to their accounts in the Employees Retirement System of Texas internet portal. Bank deposit information on file in the system was changed which re-routed retirement payments to a debit card Aminu controlled. Aminu then used the debit card for cash withdrawals and to purchase money orders which were used for personal expenses and to purchase used vehicles to be shipped overseas to Nigeria and Benin for resale. The complaint also alleges that Aminu received multiple transfers from victims of other schemes on other debit cards that had been opened using their PII. The complaint states that this scheme involving used car purchases and shipments is a common way for perpetrators of fraud in the United States to send money back to Nigeria (in the value of the shipped car), while simultaneously laundering the funds or “cleaning the money” to make the money appear as legitimate income.
Aminu remains in federal custody following his arrest. He is awaiting a detention hearing in the District of New Hampshire and a subsequent transfer to the Austin Division of the Western District of Texas. Upon conviction, Aminu faces up to 20 years in federal prison.
This criminal complaint resulted from a continuing investigation by the FBI and the Texas Department of Public Safety – Public Integrity Unit. Assistant United States Attorney Michael Galdo is prosecuting this case on behalf of the Government.
It is important to note that a criminal complaint is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
Former El Paso Gun Dealer Indicted on Federal Firearms ChargesRead the Press Release
In El Paso today, a federal grand jury indicted 31-year-old Jacob Salgado, owner of Canutillo Gun Shop, for scheme to sell firearms and ammunition to prohibited persons, announced United States Attorney John F. Bash and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Jeffrey C. Boshek, II, Dallas Division.
The eight-count indictment charges Salgado with two counts of sale of firearms or ammunition to a prohibited person, two counts of aiding and abetting the possession of firearms or ammunition by a felon, two counts of aiding and abetting providing false information on Federal Firearms Licensee (FFL) records, and two counts of failure to keep proper records as a FFL.
The indictment alleges that on two occasions--May 29, 2018, and June 11, 2018--Salgado knowingly aided a firearms purchaser in making a false declaration on ATF Form 4473 that he was buying a gun for himself, when Salgado knew the buyer was making the purchase on behalf of someone else and too, that Salgado failed to note the actual buyer’s name in his required FFL records. The indictment further alleges that in June 2018, Salgado sold two handguns and transferred approximately 500 rounds of ammunition to a customer he had reasonable cause to suspect was a convicted felon, and aided another individual’s sale of a firearm to a convicted felon, thus enabling the felon to possess firearms and ammunition.
Salgado is currently on bond following his arrest last month. The Canutillo Gun Shop is no longer an FFL meaning individuals are prohibited from purchasing firearms from the business or having firearms shipped to the business for pick up.
Upon conviction, Salgado faces up to ten years in federal prison for sale of firearms to a prohibited person; up to ten years imprisonment for aiding and abetting the possession of firearms or ammunition by a felon; up to five years imprisonment for aiding and abetting providing false information on Federal Firearms Licensee (FFL) records; and, up to ten years imprisonment for failure to keep proper records as a FFL.
The ATF is investigating this case. Assistant United States Attorney Mallory Rasmussen is prosecuting this case on behalf of the Government.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
Federal Grand Jury Indicts Three for Defacing Federal PropertyRead the Press Release
In San Antonio, a federal grand jury returned an indictment charging three individuals for allegedly defacing the San Antonio Mission National Historical Park Visitor’s Center last month, announced United States Attorney John F. Bash, San Antonio Missions National Historical Park Superintendent Mardi Arce and San Antonio Police Chief William McManus.
The indictment charges 20-year-old Gabriella Petra Fritz, 21-year-old Sydney Elizabeth Faris and 19-year-old Andres Castaneda with one count of depredation of Government property. The indictment alleges that from June 21-22, 2018, the defendants willfully used spray paint to deface the Visitor’s Center at Mission San Jose and signage resulting in damages exceeding $1,000.
The defendants face up to ten years in federal prison upon conviction. No court dates have been scheduled.
The National Park Service and the San Antonio Police Department conducted this investigation. Assistant United States Attorney Sarah Wannarka is prosecuting this case on behalf of the Government in coordination with the Bexar County District Attorney’s Office concerning damage to both federal and non-federal property (Mission San Juan).
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.
Crips East Terrance Gangstas Ringleader and Two Others Face Additional Federal ChargesRead the Press Release
In San Antonio, 40-year-old Crips East Terrance Gangstas ringleader Alvin Clark (aka “Ray Ray”) and two other gang members face additional federal charges stemming from their arrests last November on a federal “crack” cocaine distribution conspiracy charge, announced United States Attorney John F. Bash, Federal Bureau of Investigation Special Agent in Charge Christopher Combs and San Antonio Police Chief William McManus.
Today, the federal grand jury returned separate indictments against Clark, 35-year-old James Bilal Ali and 21-year-old Dai’Vonte E’Shaun Titus Ross. Clark and Ali are charged with one count of being a convicted felon in possession of a firearm. Ross is charged with one count of possession with intent to distribute “crack” cocaine and one count of possession of a firearm in furtherance of a drug trafficking crime.
On November 17, 2017, federal and state authorities arrested the trio based on a separate federal indictment alleging their involvement in a “crack” cocaine distribution conspiracy. According to the indictments returned today, Clark was in possession of a 12 gauge shotgun and a 9mm pistol while Ali was in possession of a 9mm pistol at the time of their arrests. At the same time, authorities discovered that Ross was in possession of 28 grams of “crack” cocaine as well as a 9mm pistol, a .45 pistol, a .22 rifle and a 12 gauge shotgun.
Clark and Ali face up to ten years in federal prison upon conviction of the firearm charge. Ross faces between five and 40 years in federal prison on the drug charge and no less than five years in federal prison on the firearms charge.
Each defendant remains in custody and is awaiting trial on the federal drug conspiracy charge (SA17cr874) scheduled for July 30, 2018. Upon conviction of that charge, the defendants face between ten years and life in federal prison.
This investigation, conducted by the Federal Bureau of Investigation and the San Antonio Police Department, focuses on drug trafficking and violent crime occurring on the city’s Eastside.
Assistant United States Attorney Sarah Wannarka is prosecuting this case on behalf of the Government.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Alleged Sinaloa Cartel Member Extradited to the U.S. from Mexico for Funneling Massive Amounts of Marijuana and Cocaine into the U.S.Read the Press Release
Alleged Sinaloa Cartel member Arturo Lozano-Mendez aka “Garza” is in federal custody following his extradition from Mexico to the United States yesterday afternoon. Lozano made his initial appearance in federal court in El Paso this afternoon.
The announcement was made by U.S. Attorney John F. Bash for the Western District of Texas; Special Agent in Charge Kyle W. Williamson of the Drug Enforcement Administration (DEA), El Paso Division; Special Agent in Charge Emmerson Buie, Jr., of the FBI, El Paso Division; and Special Agent in Charge Jeffrey C. Boshek, II, of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Dallas Division.
Lozano, age 47, is one of two dozen alleged high-ranking Sinaloa Cartel leaders, including Joaquin Guzman Loera aka “El Chapo” and Ismael Zambada Garcia aka “Mayo”, indicted in April 2012 on federal racketeering charges in the Western District of Texas. According to the indictment, Lozano was in charge of Sinaloa Cartel warehouses in Juarez.
“The extradition of Arturo Lozano-Mendez shows that Mexico’s continued cooperation in targeting significant drug traffickers is critical to our mutual efforts to protect the public from the negative impact of the drug trade,” stated DEA Special Agent in Charge Williamson. “DEA will continue to vigorously pursue drug traffickers and corrupt public officials who threaten the safety of our local communities and U.S. national security and continue to bring alleged cartel leaders to justice - on both sides of the border.”
“The FBI will continue to aggressively pursue transnational criminal organizations that have posed a threat to the U.S. national security, to include the corrupt public servants who are either members or in positions of leadership in the Sinaloa Cartel, who use their position to further the illicit activity of that organization,” said FBI Special Agent in Charge Buie. “The FBI is committed to upholding the rule of law and investigating those involved in criminal activity affecting our local communities.”
“The federal charges, arrests and extraditions associated with this investigation demonstrate our committed and ongoing partnership against transnational criminal organizations,” stated ATF Special Agent in Charge Jeffrey C. Boshek, II.
Lozano is charged with one count of conspiracy to conduct enterprise affairs through a pattern of racketeering activity (RICO conspiracy), one count of conspiracy to possess with the intent to distribute five kilograms or more of cocaine and 1,000 kilograms or more of marijuana, one count of conspiracy to import into the United States five kilograms or more of cocaine and 1,000 kilograms or more of marijuana, one count of conspiracy to commit money laundering offenses and one count of conspiracy to possess firearms in furtherance of drug trafficking crimes.
Twenty (20) defendants, including Lozano, remain under indictment in this case. Trial is scheduled for November 2018. Upon conviction, Lozano faces up to life in federal prison.
This investigation resulted in the seizure of hundreds of kilograms of cocaine, thousands of pounds of marijuana in cities throughout the United States. 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 Juarez and the local drug trafficking corridors.
The charges in the indictment are merely allegations, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The U.S. Department of Justice thanks the Government of Mexico for its assistance in this case.
The DEA, FBI, and ATF, together with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), U.S. Border Patrol, U.S. Customs and Border Protection (CBP), U.S. Marshals Service, El Paso Police Department, El Paso Sheriff’s Office, and the Texas Department of Public Safety investigated this case. The Justice Department’s Office of International Affairs provided significant assistance in the extradition. The case is being prosecuted by Assistant U.S. Attorneys of the Western District of Texas.
Tractor-Trailer Driver Admits to Transporting Illegal AliensRead the Press Release
In San Antonio this morning, 36–year-old Gerardo Javier Carreon of Laredo, TX, pleaded guilty to transporting illegal aliens, announced United States Attorney John F. Bash and U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden.
Appearing before United States District Judge Fred Biery, Carreon pleaded guilty to one count of conspiracy to transport illegal aliens. On June 12, 2018, authorities responding to a scene in the area of Loop 410 and Broadway discovered over 50 illegal aliens in and around a semi-tractor trailer driven by Carreon.
Carreon, who remains in federal custody, faces up to ten years in federal prison. Sentencing is scheduled for October 5, 2018.
The U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) is investigating this case. This investigation continues. Assistant United States Attorney Matt Lathrop is prosecuting this case on behalf of the Government.
Former Mayor of Crystal City, TX, Sentenced to Federal Prison for Bribery and Kickback SchemeRead the Press Release
In Del Rio today, U.S. District Judge Alia Moses sentenced Ricardo Lopez, the former Mayor of Crystal City, TX, to 97 months in federal prison followed by three years of supervised release and to pay $24,003.95___ restitution, announced United States Attorney John F. Bash and FBI Special Agent in Charge Christopher Combs.
“Today Mr. Lopez received a fair sentence for his betrayal of the public trust. This case is just one example of our office’s unyielding fight against public corruption in Central and West Texas,” stated U.S. Attorney Bash.
“Citizens deserve honest and faithful service from their public officials. Greed and self-interest have no place in public service. Officials who betray the public and violate their oath of office will be thoroughly investigated and held accountable,” said FBI SAC Combs.
On June 26, 2017, a federal jury convicted Lopez of one count of conspiracy to commit bribery involving federal programs, one substantive count of bribery involving federal programs, one count of conspiracy to commit wire fraud and theft of honest services and four substantive counts of wire fraud and theft of honest services. Jurors also convicted William James Jonas, III, the former City Manager and City Attorney for Crystal City, of one count of conspiracy to commit bribery involving federal programs, three substantive counts of bribery involving federal programs, one count of conspiracy to commit wire fraud and theft of honest services, five substantive counts of wire fraud and theft of honest services, and four counts of wire fraud.
Testimony provided during trial revealed that between May 2012 and February 2016, Jonas, Lopez, and other city officials used their official positions to enrich themselves by soliciting and accepting bribes from persons seeking to do business in Crystal City. Jonas and Lopez also used emails, texts and phone calls to carry out their scheme to defraud Crystal City and its citizens through bribery and the concealment of information.
On May 16, 2018, Judge Moses sentenced Jonas to 420 months in federal prison followed by three years of supervised release. Judge Moses also ordered that Jonas pay $1,047,814.05 restitution to Crystal City. Three other individuals—former Mayor Pro-Tem Rogelio Mata, former City Councilman Roel Mata and former City Councilman Gilbert Urrabazo—have pleaded guilty to a federal programs bribery charge and face up to ten years in federal prison and up to a $250,000 fine. Sentencing for all three former city officials is scheduled for September 6, 2018, in Del Rio before Judge Moses.
The FBI conducted this investigation with the assistance of the Texas Department of Public Safety Criminal Investigative Division, the Texas Rangers and the San Antonio Police Department. Assistant United States Attorney William R. Harris is prosecuting this case on behalf of the Government.
Houston Pharmacist Sentenced to Federal Prison for Role in Multi-Million Dollar Health Care Fraud SchemeRead the Press Release
In Austin today, Nermin Awad El-Hadik, 42-year-old owner of Hope Pharmacy, Inc., in Houston, was sentenced to five years in federal prison for paying kickbacks in a health care fraud scheme.
That announcement was made by United States Attorney John F. Bash; Special Agent in Charge Christopher Cave, U.S. Postal Service Office of Inspector General (USPS OIG), Southern Area Field Office; Special Agent in Charge Steven Grell, Department of Labor Office of Inspector General (DOL OIG), Dallas Region; and, Special Agent in Charge Christopher Combs, Federal Bureau of Investigation (FBI), San Antonio Division.
In addition to the prison term, United States District Judge Sam Sparks ordered that the defendant pay $5,334,303.04 restitution to the DOL and be placed on supervised release for a period of three years after completing her prison term.
“The sentence imposed today should send a clear message that these crimes will not be tolerated,” said USPS OIG Special Agent in Charge Cave. “The USPS Office of Inspector General, along with our law enforcement partners, will continue to aggressively pursue these investigations in order to ensure the protection of the Postal Service and federal benefits programs.”
“Nermin Awad El-Hadik fraudulently paid more than $5.3 million to a medical provider in a kickback scheme in exchange for referrals of injured employees covered by the DOL Federal Employees’ Compensation Act. We will continue to work with our law enforcement partners and DOL’s Office of Workers’ Compensation Programs to protect the integrity of DOL benefits programs,” said DOL OIG Special Agent in Charge Grell.
“Rooting out health care fraud is central to the well-being of both our citizens and the overall economy. Health care fraud costs the country billions of dollars a year, and the FBI seeks to identify and pursue investigations against the most egregious offenders involved in health care fraud through investigative partnerships with other federal agencies,” said FBI Special Agent in Charge Combs.
On November 9, 2016, the Houston resident pleaded guilty to a one count Information charging her with willful offer and payment of illegal remuneration in relation to a federal health care program. By pleading guilty, El-Hadik admitted that from March 2015 to December 2015, she paid kickbacks to Garry Wayne Craighead. Craighead, a chiropractor, organized and controlled multiple health care related entities, including eight clinics in Texas (Dallas, Fort Worth, Killeen, Austin, San Antonio, Corpus Christi, Weslaco, and Beaumont), that derived substantial revenue from DOL health care benefit programs. El-Hadik paid Craighead cash for patient referrals of federally-insured employees in need of prescription services; and, for his influence in encouraging physicians to prescribe compounded medications for patients, which would then be furnished at Hope Pharmacy.
On December 4, 2015, Craighead pleaded guilty to one count of solicitation and receipt of illegal remunerations in federal health care programs and one count of engaging in monetary transactions in property derived from specified unlawful activity. On June 10, 2016, Craighead was sentenced to 14 years in federal prison and ordered to pay over $17 million restitution to the U.S. Department of Labor.
The U.S. Postal Service Office of the Inspector General, U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit, Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation, and the U.S. Department of Labor Office of the Inspector General conducted this investigation. Assistant U.S. Attorneys James Blankinship and Mark Marshall are prosecuting this case for the government.
FourWinds Consultant Gary Cain Sentenced to 68 Months in Federal PrisonRead the Press Release
In San Antonio today, a federal judge sentenced FourWinds Logistics, Inc. (FourWinds) consultant Gary Cain to 68 months in federal prison, announced U.S. Attorney John F. Bash, Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division, and Internal Revenue Service-Criminal Investigation Special Agent in Charge D. Richard Goss, San Antonio Field Office.
In addition to the prison term, Senior U.S. District Judge David A. Ezra ordered that Cain pay, jointly and severally, $6,345,441 restitution and be placed on supervised release for a period of three years after completing his prison term. Judge Ezra also ordered Cain to surrender by September 25, 2018, or upon notification by U.S. Bureau of Prisons officials, to begin serving his federal prison term.
Yesterday, Judge Ezra sentenced Cain’s co-defendant, San Antonio attorney and former District 19 Texas State Senator Carlos I. Uresti to 12 years in federal prison and the same amount of restitution.
In February, a jury found Cain and Uresti guilty on all charges for their roles in a Ponzi scheme that defrauded investors out of millions of dollars. Charges against Cain included one count of conspiracy to commit wire fraud, one count of conspiracy to commit money laundering and seven counts of engaging in monetary transactions with property derived from specified unlawful activity. Charges against Uresti included one count of conspiracy to commit wire fraud, one count of conspiracy to commit money laundering, five substantive counts of wire fraud, two counts of securities fraud, one count of engaging in monetary transactions with property derived from specified unlawful activity, and one count of being an unregistered securities broker. Prior to jury selection, former FourWinds Chief Executive Officer Stanley P. Bates pleaded guilty to eight separate federal charges including securities fraud and money laundering.
Evidence presented during trial revealed that from February 2014 to December 2015, the defendants developed an investment Ponzi scheme to buy and sell hydraulic fracturing (fracking) sand for oil production. Evidence showed that the defendants made false statements and representations while soliciting investors in FourWinds. Collected funds were then used to pay earlier investors and for personal expenses including gifts, travel, luxury automobiles, controlled substances, and to hire prostitutes. Evidence and testimony also revealed that Uresti, Cain and Bates engaged in money laundering with the proceeds of wire fraud.
Bates is scheduled to be sentenced at 1:30pm on August 6, 2018, in front of Judge Ezra. For each fraud related charge, Bates faces up to 20 years in federal prison upon conviction. For each money laundering charge, Bates faces up to ten years in federal prison upon conviction.
The FBI’s Public Corruption Task Force is conducting this investigation. The Task Force is comprised of investigators from the FBI, IRS-CI, Texas Department of Public Safety (DPS) and the Peace Corps-Office of Inspector General. Assistant U.S. Joseph E. Blackwell, William R. Harris, Mark Roomberg, Erica Giese and Sean O’Connell are prosecuting this case on behalf of the Government.