Western District of Texas
Press releases recorded for this federal judicial district.
Former A.B.I.A. Baggage Handler Sentenced to Federal Prison for Stealing FirearmsRead the Press Release
This morning, U.S. District Judge Sam Sparks sentenced Ja’Quan Johnson, a 26-year-old baggage handler at Austin Bergstrom International Airport (ABIA), to 18 months in federal prison followed by three years of supervised release for stealing items from checked baggage, including a .40 caliber Glock semi-automatic pistol, announced United States Attorney Richard L. Durbin, Jr., Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division, and Austin Police Chief Brian Manley.
On June 7, 2017, Johnson pleaded guilty to one count of theft from an interstate shipment and one count of possession of a stolen firearm. By pleading guilty, Johnson admitted that between November 29, 2016, and February 2, 2017, he stole seven handguns from inside passenger bags at ABIA.
The Federal Bureau of Investigation, Transportation Security Administration and the Austin Police Department’s Aviation Division conducted this investigation. Assistant United States Attorney Gregg N. Sofer prosecuted this case for the Government.
Federal and State Authorities Arrest Total of 38 Individuals Based on San Antonio Federal Drug Trafficking IndictmentsRead the Press Release
This morning, federal, state and local authorities arrested a dozen individuals without incident, including San Antonio Eastside-based ringleader Donavin Sanchez, on federal drug charges stemming from a heroin and methamphetamine trafficking investigation announced United States Attorney Richard L. Durbin, Jr.; Drug Enforcement Administration Acting Special Agent in Charge Steve Whipple, Houston Division; and, Texas Department of Safety Director Steve McCraw. Below is a complete list of defendants resulting from this investigation.
Since June 2017, a federal grand jury in San Antonio has returned three (3) indictments charging 38 individuals in connection with this investigation. The indictments, including the latest one which was unsealed today, charges all 38 defendants with conspiracy to possess with intent to distribute a controlled substance. Several of the defendants face additional charge(s), namely, possession with intent to distribute a controlled substance. Upon conviction, the defendants face sentences of either up to 20 years in federal prison, between 5 and 40 years in federal prison, or up to life in federal prison depending on the amount of heroin or methamphetamine involved.
According to the indictments, the defendants were allegedly involved in a scheme to distribute narcotics, namely methamphetamine, heroin and other opioids, in San Antonio. During this investigation, authorities have seized approximately six (6) kilograms of heroin, 14.5 kilograms of methamphetamine, three firearms, and approximately $182,000 in U.S. Currency attributed to this organization.
“Nothing is more important than the safety and security of our communities. DEA, and our federal, state, and local law enforcement partners in San Antonio and throughout Texas, remain vigilant in our pursuit of drug trafficking organizations who threaten our community safety. These arrests send a strong and unified message that these crimes will not be tolerated in our communities and those who commit these offenses will be brought to justice,” stated DEA Acting Special Agent in Charge Steve Whipple.
“Organized crime and drug trafficking are a serious threat to public safety in Texas, and DPS vigilantly works alongside our law enforcement partners to detect, deter and dismantle drug trafficking organizations operating in our communities,” said DPS Regional Commander Freeman Martin. “This long-term investigation is an ideal example of how law enforcement at all levels works together to put criminals behind bars and protect Texans.”
The Drug Enforcement Administration—San Antonio Office and the Texas Department of Public Safety conducted this investigation together with the Seguin Police Department, Castle Hills Police Department, Internal Revenue Service-Criminal Investigation, Bexar County District Attorney’s Office, Bexar County Sheriff’s Office, and San Antonio Police Department. 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.
US vs. Donavin Sanchez, et al. SA17cr633 * denotes already in custody prior to today
Name Age Residence Arrest Date Counts
Donavin Sanchez 23 San Antonio 8.23.17 1,2,3,4,5,6,7,8,9,10
Edwin Jiminez 62 San Antonio 8.23.17 1
John Sallin 47 San Antonio 8.23.17 1
Edward Alejandro 30 San Antonio 8.23.17 1
Melissa Carrera 39 San Antonio 8.23.17 1,2,6,7,8
Roger Troy Sanchez 25 San Antonio 8.23.17 1
Chenille Lujan 84 San Antonio 8.23.17 1
Michelle Sallin 23 San Antonio 8.23.17 1,3,5
Alexander Nichols 26 San Antonio 8.23.17 1,4,5
Marko Cadena 21 San Antonio 8.23.17 1,9
Kenneth Dickens 60 San Antonio 8.23.17 1
Conception Segura 30 San Antonio 8.23.17 1
*Luis Antonio Rodriguez 32 San Antonio 8.4.17 1,10
US vs. Christian Gallegos, et al. SA17cr507
*Christian Gallegos 28 San Antonio 6.2.17 1,3,4
*Edgar Portales 24 San Antonio 6.29.17 1,2,3,4
*Irene Portales 28 San Antonio 6.29.17 1
*Crystal DeLaGarza 25 San Antonio 6.29.17 1
*Yoan Loya-Morales 35 San Antonio 6.2.17 1,3,4
*Larry Ozuna 26 San Antonio 6.2.17 1,3,4
*Roberto Gonzalez 34 San Antonio 6.29.17 1,2
*Adrian Dominguez 20 San Antonio 6.29.17 1
*Issac Cardenas 27 San Antonio 7.17.17 1
*Paul Chacon 46 San Antonio 6.29.17 1
*Alberto Otenco-Ramos 34 San Antonio 6.2.17 1
U.S. v. Mike Flores, Jr., et al. SA17cr632
*Mike Flores, Jr. 45 San Antonio 8.3.17 1,2,4,5,8,9
*Oscar Llanes 46 San Antonio 8.17.17 1,4,5
*Genaro Requejo 61 San Antonio 7.26.17 1,4,5,6,7
*Richard Pierce 48 San Antonio 8 .17.17 1
*Robert Solis 54 San Antonio 8.17.17 1
*Ricardo Hernandez 69 San Antonio 8 .17.17 1
*Adolfo Cruz 42 San Antonio 8.17.17 1,4,5
*Joe Anthony Valenzuela 37 San Antonio 7.20.17 1,2,3
*Christina Maciel 35 San Antonio 8.17.17 1
*Pedro Martinez-Espinoza 32 San Antonio 8.17.17 1,4,5
*Leonidas Ortiz 27 San Antonio 7.29.17 1,4,5,8
*Joseph John Molina 38 San Antonio 7.29.17 1,8
*Charles Ortiz 49 San Antonio 8.3.17 1,10
*Pedro Requejo 68 San Antonio 8.3.17 1,9
Former Eagle Pass City Manager Sentenced to Federal Prison for Lying to FBI in Connection with Investigation into “Pay-To-Play” Bribery Scheme Involving Maverick County ContractsRead the Press Release
In Del Rio this morning, United States District Judge Alia Moses sentenced 68-year-old former Eagle Pass City Manager Hector Chavez, Sr., to 42 months in federal prison followed by three years of supervised release for lying to FBI agents during their investigation into a “pay-to-play” scheme involving Maverick County contracts, announced United States Attorney Richard Durbin, Jr., and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
On March 30, 2017, Chavez pleaded guilty to one count of making a false statement to a federal agent. By pleading guilty, Chavez admitted that on June 25, 2015, he knowingly gave false statements to agents regarding his response to a federal grand jury subpoena, his work on Maverick County contracts, and a personal consulting services contract with an engineering firm.
According to court records, on May 4, 2015, a federal grand jury subpoena was issued to Chace Management, a company owned by the defendant, for all records regarding any subcontracting work done for Hejl, Lee and Associates. Chavez, admittedly, lied to authorities about creating a fraudulent, hand-written personal services agreement he provided in response to the subpoena. Chavez also claimed to have received approximately $24,000 for services rendered to Hejl, Lee and Associates when in fact, the work listed in the agreement never took place.
This investigation was conducted by the FBI and the Texas Department of Public Safety Criminal Investigations Division together with the Customs and Border Protection Office of Internal Affairs. Assistant United States Attorneys Katherine Griffin, Daniel Lee and Todd Keagle prosecuted this case on behalf of the Government.
Two Aryan Brotherhood Members Sentenced to Federal Prison for 2016 Burleson County CarjackingRead the Press Release
In Austin today, a federal judge sentenced Aryan Brotherhood members Roy Ates, Jr., and Chad Ryan Smith, to 180 months and 160 months in federal prison, respectively, for their roles in a 2016 Burleson County (TX) carjacking that resulted in the serious bodily injury to the owner of the vehicle announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation Special Agent in Charge Perrye K. Turner, Houston Division.
In addition to the prison term, United States District Judge Sam Sparks ordered that Ates, age 40 of College Station, TX, and Smith, age 32 of Somerville, TX, be placed on supervised release for a period of three years after completing their prison terms.
According to court records, the victim in this case, an African American, drove to a residence in Somerville on July 2, 2016. Upon his arrival, the defendants ambushed him and began assaulting him while the victim was still inside his vehicle. During the physical altercation, Ates brandished a large knife and cut the victim’s hand, which required multiple stitches. Claiming they needed it to get to Austin to catch a bus to Missouri, the defendants the took control of the victim’s vehicle and drove to a remote area in Lee County where they forced the victim to exit the vehicle. Instead of going to Austin, the defendants returned to Burleson County in the victim’s vehicle.
“The United States Attorney’s Office is committed to identifying, apprehending and prosecuting violent criminals in an effort to deter crime and protect the citizens of our communities,” stated United States Attorney Richard L. Durbin, Jr. “As the Attorney General has directed, we will continue our aggressive efforts in using the tools available to us to hold violent criminals accountable for their actions and ensure appropriate sanctions under federal law.”
“The FBI remains committed to investigating those who pose a threat to society and violate the most basic civil liberties of the American people. Violent crimes inflicted upon our citizens erode the trust that is inherent in a law abiding society,” stated FBI Special Agent in Charge Perrye K. Turner, Houston Division. “The FBI will continue to combine our resources with our local, state, and federal partners to mitigate this prevalent threat in an efficient and effective manner.”
On April 25, 2107, federal authorities arrested the defendants in Burleson County. They have since remained in federal custody.
The Burleson County Sheriff’s Office, Texas Rangers, Burleson County District Attorney’s Office and the FBI Safe Streets Task Force out of the FBI Resident Agency Office in Bryan, TX, investigated this case. Assistant United States Attorney Grant Sparks prosecuted this case on behalf of the Government.
Former CEO of Arthrocare Corporation Convicted for Orchestrating $750 Million Securities Fraud SchemeRead the Press Release
A federal jury today convicted the former chief executive officer of ArthroCare Corporation, a publicly traded medical device company based in Austin, Texas, for his role in orchestrating a fraud scheme that resulted in shareholder losses of over $750 million.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney Richard L. Durbin, Jr. of the Western District of Texas and Special Agent in Charge Christopher Combs of the FBI’s San Antonio Field office made the announcement.
After a two-week trial, a jury in the Western District of Texas found the former CEO, Michael Baker, 58, of Austin, Texas, guilty of one count of conspiracy to commit wire fraud and securities fraud, seven counts of wire fraud, two counts of securities fraud and two counts of making false statements. Baker was charged in a superseding indictment unsealed on July 17, 2013.
Evidence at trial demonstrated that Baker, along with his co-conspirators, masterminded and executed a scheme to artificially inflate sales and revenue through a series of end-of-quarter transactions involving several of ArthroCare’s distributors beginning in 2005 and continuing until 2009. Co-conspirators David Applegate and John Raffle, both former senior vice presidents of ArthroCare, pleaded guilty to multiple felonies in 2013 in connection with their participation in the scheme. Co-conspirator Michael Gluk, former chief financial officer of ArthroCare, pleaded guilty to conspiracy to commit wire and securities fraud on June 14, in connection with his participation in the scheme.
The trial evidence showed that Baker, along with his co-conspirators, determined the type and amount of product to be shipped to distributors based on ArthroCare’s need to meet Wall Street analyst forecasts, rather than distributors’ actual orders. Baker and others then caused ArthroCare to “park” millions of dollars’ worth of ArthroCare’s medical devices at its distributors at the end of each relevant quarter. ArthroCare then reported these shipments as sales in its quarterly and annual filings at the time of the shipment, enabling the company to meet or exceed internal and external earnings forecasts.
Evidence at trial further showed that ArthroCare’s distributors agreed to accept shipment of millions of dollars of products in exchange for special conditions, including substantial, upfront cash commissions, extended payment terms and the ability to return products, allowing ArthroCare to falsely inflate revenue by tens of millions of dollars. Baker and others used DiscoCare, a privately owned Delaware corporation, as one of the distributors to cover shortfalls in ArthroCare’s revenue. At Baker’s direction, ArthroCare shipped product to DiscoCare that far exceeded DiscoCare’s needs.
Baker and others lied to investors and analysts about ArthroCare’s relationships with its distributors, including DiscoCare; Baker caused ArthroCare to acquire DiscoCare specifically to conceal from the investing public, the nature and financial significance of ArthroCare’s relationship with DiscoCare, the evidence showed.
Evidence at trial also established that Baker lied when he was deposed by the U.S. Securities and Exchange Commission in November 2009 about ArthroCare’s relationship with DiscoCare.
Following today’s verdict, U.S. District Judge Sam Sparks of the Western District of Texas, who presided over the trial, remanded Baker into custody. A sentencing date for Baker has not yet been scheduled.
This case was investigated by the FBI’s San Antonio Field Office. The case is being prosecuted by the Fraud Section’s Securities and Financial Fraud Unit Chief Benjamin D. Singer, Assistant Chief Henry P. Van Dyck and Trial Attorney Caitlin Cottingham.
Former Ector County Sheriff’s Deputy Sentenced to Federal Prison for Extortion Under Color of LawRead the Press Release
In Midland today, a federal judge sentenced 47-year-old former Ector County Sheriff’s Deputy David Oscar Limon to 15 months in federal prison for extortion under color of law announced United States Attorney Richard L. Durbin, Jr., Federal Bureau of Investigation Special Agent in Charge Emmerson Buie, Jr., El Paso Division, and Special Agent in Charge Waldemar Rodriguez, Homeland Security Investigations (HSI), El Paso.
In addition to the prison term, United States District Judge Robert A. Junell ordered that Limon pay a $13,200 fine and perform 100 hours of community service while on three years of supervised release after completing his prison term. Judge Junell also ordered that Limon surrender within the next 60 days to federal authorities in order to begin serving his prison term.
On May 11, 2017, Limon pleaded guilty to one count of Hobbs Act extortion under color of law, or affecting commerce by extortion. By pleading guilty, Limon admitted that while serving as an Ector County Sheriff’s deputy between January 2010 and June 10, 2016, he extorted over $13,000 from several Odessa game room owners in exchange for protection for their game rooms and information about law enforcement actions that affected their operations.
“David Oscar Limon, a Sheriff’s deputy charged to lawfully protect the citizens of Ector County, was motivated by his own self-interest and greed,” stated Emmerson Buie, Jr., FBI El Paso. “The FBI is pleased Mr. Limon is being held accountable for these criminal actions. We will continue to root out public corruption, whether it is officials who violate their oath and the law, or citizens who bribe them to do so.”
“This sentence sends a clear message to law enforcement who choose to break the laws they were sworn to uphold,” said Waldemar Rodriguez, special agent in charge of HSI El Paso. “HSI special agents will continue to build strong relationships with our law enforcement partners to hold individuals in positions of public trust to the highest of standards.”
The FBI and HSI investigated this case with assistance from the Ector County Sheriff’s Office. Assistant United States Attorney LaTawn Warsaw prosecuted this case on behalf of the Government.
Federal Grand Jury Charges James Matthew Bradley, Jr., with Transporting Undocumented Aliens for Financial Gain Resulting in DeathRead the Press Release
In San Antonio this afternoon, a federal grand jury indicted 60–year-old James Matthew Bradley, Jr., for his role in a smuggling operation which resulted in the deaths of ten undocumented aliens last month announced United States Attorney Richard L. Durbin, Jr., and U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden.
The five-count indictment charges Bradley with one count of conspiracy to transport and harbor undocumented aliens for financial gain resulting in death; one count of transportation of undocumented aliens resulting in death; one count of conspiracy to transport and harbor undocumented aliens for financial gain resulting in serious bodily injury and placing lives in jeopardy; one count of transporting undocumented aliens resulting in serious bodily injury and placing lives in jeopardy; and, one count of possession of a firearm by a convicted felon.
Upon conviction of the conspiracy and transportation-resulting-in-death charges, Bradley faces up to life imprisonment or death. Upon conviction of the conspiracy and transportation-resulting-in-serious-bodily-injury charges, Bradley faces up to 20 years in federal prison. Upon conviction of the felon-in-possession charge, Bradley faces up to ten years in federal prison.
According to court documents, 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. 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. According to court records, the undocumented aliens estimated the trailer contained between 70 and 180 to 200 people during transport. They also described differing fees for being transported. Authorities also recovered a .38 caliber pistol from inside the cab of the tractor-trailer. Bradley, who was arrested at the scene, has remained in federal custody.
Of the 39 undocumented aliens discovered, ten are deceased, two remain hospitalized, 22 are in federal custody charged as material witnesses; and, five individuals (four juveniles and one adult) have since been released from the hospital and turned over to Immigration authorities. The four juveniles are currently under the supervision of the Office of Refugee Resettlement (ORR). The adult is pending administrative processing through the U.S. Immigration Court.
The U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) is leading this investigation together with ICE Enforcement and Removal Operations (ERO), the San Antonio Police Department and the San Antonio Fire Department, with assistance from the Bexar County Sheriff’s Office and the U. S. Customs and Border Protection’s Border Patrol. Assistant United States Attorneys Christina Playton and Matthew Lathrop are prosecuting this case on behalf of the Government.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
Jury Finds Former Midland Bookkeeper Guilty of Embezzlement and Tax Evasion SchemeRead the Press Release
In Midland today, a federal jury convicted a former bookkeeper on federal charges in connection with a scheme to steal over $2 Million from a local businessman announced United States Attorney Richard L. Durbin, Jr., Federal Bureau of Investigation Special Agent in Charge Emmerson Buie, Jr., El Paso Division; and, Internal Revenue Service-Criminal Investigation Special Agent in Charge William Cotter.
Jurors found 52–year-old Kimberley Dale Boyce of Midland guilty of three counts of mail fraud; three counts of wire fraud; three counts of engaging in monetary transactions with criminally derived funds; and, three counts of tax evasion.
Evidence presented at trial revealed that over a two-year period beginning in February 2012, Boyce implemented a scheme involving mailed documentation and wire transfers to syphon money from a Midland County business owner’s bank accounts and place it into bank accounts which she controlled. Boyce also failed to accurately report to the Internal Revenue Service her actual taxable income—totaling more than $2.5 million--for tax years 2012, 2013, and 2014.
Following today’s verdict, United States District Judge Robert A. Junell remanded the defendant into the custody of the U.S. Marshals Service. Boyce faces up to 20 years imprisonment for each wire and mail fraud count; up to ten years imprisonment for each money laundering count; and up to five years imprisonment for each tax evasion count. Sentencing is scheduled for 9:00am on October 11, 2017, before Judge Junell in Midland.
This case was investigated by the FBI and IRS-Criminal Investigation. Assistant United States Attorneys William F. Lewis, Jr., and Daniel Castillo are prosecuting this case on behalf of the Government.
Former Presidio Title C.F.O. Sentenced to Federal Prison for Stealing over $367K from CompanyRead the Press Release
In San Antonio this afternoon, a federal judge sentenced Joseph P. Karpowicz, 48-year-old former Chief Financial Officer for Presidio Title (Presidio), to 30 months in federal prison for stealing over $367,000 from the San Antonio real estate title company announced United States Attorney Richard L. Durbin, Jr.
In addition to the prison term, United States District Judge Xavier Rodriguez ordered that Karpowicz pay $367,309 restitution to his victim and be placed on supervised release for a period of three years after completing his prison term.
On August 24, 2016, Karpowicz pleaded guilty to one count of mail fraud and one count of engaging in financial transactions with criminally derived proceeds.
According to court records which the defendant admitted were factually correct, Karpowicz schemed to steal the money from Presidio between April 2010 until June 2013. Karpowicz issued Presidio checks to pay for his own personal expenses and credit card bills, then created materially false entries in Presidio’s records in order to hide his fraudulent conduct.
The United States Secret Service Identity Theft Task Force together with the Internal Revenue Service-Criminal Investigation conducted this investigation. Assistant United States Attorney Thomas P. Moore prosecuted this case on behalf of the Government.
Judge Sentences U.K. Citizen and City of Austin Employee in Marriage Fraud SchemeRead the Press Release
In Waco last week, a federal judge sentenced Nancy Chan, a 39-year-old citizen of the United Kingdom and City of Austin employee, for perpetrating a marriage fraud scheme announced United States Attorney Richard L. Durbin, Jr., and Special Agent in Charge Javier Enriquez, Customs and Border Protection Office of Professional Responsibility, El Paso Division.
On January 19, 2017, a federal jury convicted Chan of one count of conspiracy to commit marriage fraud and one count of conspiracy to commit mail fraud. On July 27, 2017, United States District Judge Alia Moses sentenced Chan to 12 months imprisonment on each count. Both sentences are to run concurrent. In addition, Chan also was sentenced to a 3-year supervised release term after she completes her prison sentence.
During Chan’s two-day trial, two co-defendants entered guilty pleas for their roles in the scheme. Isabel Metzler, a 46-year-old former Customs and Border Protection officer at the Eagle Pass Port of Entry, pleaded guilty to conspiracy to commit marriage fraud. Metzler’s husband, Luis Morales, a 37-year-old former Customs and Border Protection officer at the Eagle Pass Port of Entry, pleaded guilty to one count of making a false statement to a federal agent.
Testimony during trial revealed that after discussing her immigration status with her friend, Isabel Metzler, Nancy Chan entered into a fraudulent marriage agreement with a person known to Metzler and Morales for the purpose of becoming a lawfully permanent resident. On March 2, 2011, in Maverick County, Chan married the U.S. citizen. In 2014, Chan and her legal spouse submitted false documentation to obtain Lawfully Admitted Permanent Resident (LAPR) status for Chan and to seek naturalization. Chan and her spouse were subsequently interviewed separately by an officer of the United States Citizenship and Immigration Services to determine the validity of their marriage. Their answers to questions posed by the officer contained numerous inconsistencies, which revealed that the marriage was a sham.
By pleading guilty, Metzler admitted to her role in setting up and attempting to conceal the fraudulent marriage scheme. Morales admitted that on February 9, 2016, he lied to Customs and Border Protection Office of Professional Responsibility investigators about his knowledge of the marriage fraud scheme and for convincing the spouse to maintain the marriage charade to authorities.
Metzler faces up to five years in federal prison for conspiracy to commit marriage fraud. Morales faces up to five years in federal prison for making a false statement to authorities. Metzler and Morales remain on bond pending sentencing scheduled for October 17, 2017.
This case was investigated by the Customs and Border Protection Office of Professional Responsibility together with the U.S. Citizenship and Immigration Services, Federal Bureau of Investigation and the Austin Police Department. Assistant United States Attorneys Patrick Burke, Todd Keagle, and Chris Blanton are prosecuting this case on behalf of the government.
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Pennsylvania Man Sentenced to Federal Prison in Multi-Million-Dollar Pyramid SchemeRead the Press Release
In El Paso today, a federal judge sentenced 61-year-old David Brian Binder of Pittsburg, PA, to 30 months in federal prison followed by three years of supervised release for his role in a Ponzi scheme that resulted in an estimated $14 million loss announced United States Attorney Richard L. Durbin, Jr.
In addition to the prison term, United States District Judge David C. Guaderrama ordered that Binder pay a $5,000 fine and $503,027.90 restitution.
On March 3, 2017, Binder pleaded guilty to one count of wire fraud. By pleading guilty, Binder admitted to helping his co-defendant, 40-year-old self-proclaimed licensed investment broker and Mexican businessman Roberto Trinidad Del Carpio Frescas, keep proceeds from the scheme out of the hands of potential creditors as well as lying to them about protecting their investments.
On March 15, 2017, Judge Guaderrama sentenced Del Carpio of Chihuahua, Mexico, to 235 months in federal prison followed by three years of supervised release. On Tuesday, Judge Guaderrama ordered Del Carpio to pay $5,402,661 in restitution to his victims. On February 19, 2016, a federal jury convicted Del Carpio of Chihuahua, MX, of 24 counts of wire fraud and ten counts of money laundering.
Evidence presented during trial revealed that Del Carpio held himself out to have superior knowledge and ability as an investor in stocks, bonds, futures in oil, gas, precious metals and currency. Though he was not licensed in the state of Texas as a dealer, or registered as an investment adviser, Del Carpio formed several companies in Texas including SMI International Institute Corporation (aka Stock Market Investment), Del Carpio Trading Institute LLC, and one in the Cayman Islands, Del Carpio Holdings, to facilitate his scheme.
From August 2010 until January 2012, Del Carpio and others collected money from over 100 known investors in Mexico and the United States. Del Carpio pocketed most all of the funds he collected though he did pay minimal amounts of money to “early” investors as a return on their investment and to encourage his victims to invest more of their money with him.
The U.S. Secret Service and the El Paso Police Department conducted this investigation. Assistant United States Attorneys Ian Hanna and Stanley Serwatka prosecuted this case on behalf of the Government.
Authorities in San Antonio Arrest Alleged Eastside Drug Dealer on Federal ChargeRead the Press Release
In San Antonio last night, authorities arrested 36-year-old Charles Lee Bethany for possessing with intent to distribute 28 grams or more of cocaine base announced United States Attorney Richard L. Durbin, Jr., Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division and San Antonio Police Chief William McManus.
A criminal complaint and supporting affidavit filed in federal court this morning alleges that an investigation by the FBI and the San Antonio Police Department developed information that Bethany was possessing controlled substances at a residence he controlled in the 600 block of J Street in San Antonio. On July 21, 2017, investigators searched the premises with a warrant and seized approximately 56 grams of cocaine powder and 56 grams of crack cocaine. Information indicated that Bethany, who was not present, learned of the search. Officers of the San Antonio Police Department Repeat Offenders Project learned of his whereabouts on Wednesday and arrested him.
The affidavit also indicates that information obtained by investigators suggests that Bethany may have been the intended target of a drive-by shooting in the 400 block of Spriggsdale that occurred shortly after 4:00 p.m., on July 19, 2017. That shooting was followed by another the same day, shortly before midnight in the 200 block of Hub Street, in which a 4-year-old boy was killed. Surveillance video indicates that later that night a number of individuals appearing to be in possession of a pistol and a rifle left the location on J Street about 12 minutes before the shooting on Hub Street. According to the surveillance, those individuals returned to the J Street address moments after the shooting. The investigation into those shootings continues.
“The arrest of Charles Bethany is part of our joint effort—the FBI, the San Antonio Police Department, the Bureau of Alcohol, Tobacco, and Firearms, the U.S. Attorney’s Office and the Bexar County District Attorney’s Office—to end the senseless shootings in San Antonio. This investigation continues along with our on-going work to stop violent crime, using whatever tools are legally available to us under federal and state laws. We ask that anyone having information about this case or other acts of violence contact the SAPD or the FBI,” stated United States Attorney Richard L. Durbin, Jr.
Bethany remains in federal custody. A detention hearing is scheduled for 9:00am on August 1, 2017, before United States Magistrate Judge Henry J. Bemporad in San Antonio. Upon conviction of the drug charge, Bethany faces between 5 and 40 years in federal prison.
Assistant United States Attorney Sarah Wannarka 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.
Federal Alien Smuggling Charge Filed Against Driver of Tractor-TrailerRead the Press Release
In San Antonio, 60–year-old James Matthew Bradley, Jr., is charged with one count of transporting illegal aliens, announced United States Attorney Richard L. Durbin, Jr., and U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden.
A federal complaint filed this morning, alleges that Bradley unlawfully transported aliens in violation of law, resulting in the death of ten of the aliens transported. The tenth alien, an adult male, died overnight at a hospital. Upon conviction, the offense is punishable by life imprisonment or death, a $250,000 fine, and three years of supervised release.
According to the complaint affidavit filed by HSI Special Agent James Lara, San Antonio Police Department (SAPD) Officers responded to a call at the Wal-Mart store located at 8538 Interstate 25 Access Road in San Antonio shortly after midnight on Sunday, July 23. 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. Bradley said he was transporting the trailer from Schaller, Iowa, to Brownsville, Texas. He denied knowing there were people in the trailer, and discovered them only when he exited the vehicle to relieve himself. He said he attempted to administer aid to them. Law enforcement officers from SAPD reported they found eight deceased persons and 30-40 others, all undocumented aliens. The driver, Bradley, was taken into custody.
During questioning, Bradley said he was traveling from Laredo to San Antonio, after having the tractor-trailer washed and detailed at a truck stop near Laredo. He intended to take the trailer to Brownsville to deliver it to someone who had purchased it. He stopped at the Wal-Mart and heard banging and shaking in the trailer. He was surprised when “he was run over by ‘Spanish’ people and knocked to the ground,” according to the affidavit. He realized that at least one person was dead. He said he knew the trailer refrigeration system did not work and that the four vent holes probably were clogged. He said he called his wife, but he did not call 911. He said about 30 to 40 people ran from the trailer.
Several of the undocumented aliens taken from the trailer and interviewed by HSI Special Agents described how they had been smuggled across the Rio Grande River near Laredo at different times and as part of different groups. They were harbored in one or more stash locations, and on Sunday, the groups were assembled in the trailer. One alien said his group of 24 had been in a “stash house” in Laredo for 11 days before being loaded into the trailer. They estimated the trailer contained between 70 and 180 to 200 people during transport. They described differing fees for being transported.
"To maximize their criminal profits, these human smugglers crammed more than 100 people into a tractor trailer in the stifling Texas summer heat resulting in ten dead and 29 others hospitalized," said Acting ICE Director Thomas Homan. "Human smugglers have repeatedly demonstrated that they have absolutely no regard for human life. Our ICE agents and officers, working closely with our law enforcement partners, will pursue these smugglers and bring them to justice."
An initial appearance for Bradley is scheduled before U.S. Magistrate Judge Elizabeth S. Chestney at approximately 11:00 a.m., today.
The U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) is leading this investigation together with ICE Enforcement and Removal Operations, the San Antonio Police Department and the San Antonio Fire Department, with assistance from the Bexar County Sheriff’s Office and the U. S. Customs and Border Protection’s Border Patrol.
Assistant United States Attorney Christina Playton 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.
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Statement by United States Attorney Richard L. Durbin, Jr., Regarding Alien Smuggling Incident this MorningRead the Press Release
"San Antonio firefighters and police responded to a horrific scene this morning on the southwest side of town. They discovered an alien smuggling venture gone horribly wrong. Eight immigrants were found dead. At least twenty more were in serious condition. All were victims of ruthless human smugglers indifferent to the well-being of their fragile cargo. The South Texas heat is punishing this time of year. These people were helpless in the hands of their transporters. Imagine their suffering, trapped in a stifling trailer in 100-plus degree heat. The driver is in custody and will be charged. We will work with the Homeland Security Investigations and the local responders to identify those who were responsible for this tragedy."
Richard L. Durbin, Jr. United States Attorney
Western District of Texas
Statement Concerning the Tractor-Trailer of Undocumented Aliens Found in Southwest San Antonio on July 23, 2017Read the Press Release
For clarification the number of persons recovered from the trailer was 39, not the 38 reported earlier. The 39th person had been in the trailer but authorities found him this morning in a wooded area nearby. The number of individuals who have died has risen to nine. All of the deceased are adult males. Thirty others are being treated at area hospitals. At this time, investigators are making efforts to identify the victims and will seek to notify family and next of kin. Officials will not release the identities or alienage of victims until relatives can be notified.
A subject identified as James Mathew Bradley, Jr., age 60, from Clearwater, Florida, is being held in federal custody in connection with this incident. A criminal complaint will be filed in federal court in San Antonio on Monday morning. It is anticipated that Bradley will have an initial appearance shortly after that time.
The Department of Homeland Security/Homeland Security Investigations together with Immigration Customs Enforcement -- Enforcement and Removal Office, the San Antonio Police Department, the San Antonio Fire Department, the Bexar County Sheriff’s Office, the Border Patrol, U. S. Attorney’s Office, and the Bexar County District Attorney’s Office, are continuing the investigation.
Anyone having any information should call the ICE tip line at 866-347-2423. Any persons who were transported in the trailer should immediately seek medical attention.
It is important to note that the filing of a criminal complaint is merely a charge and should not be considered as evidence of guilt. A defendant is presumed innocent until proven guilty in a court of law.
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Barrio Azteca Gang Lieutenant Sentenced to Life in Prison for Racketeering ConspiracyRead the Press Release
A Barrio Azteca (BA) gang lieutenant was sentenced on July 20, to life in prison today for his participation in a racketeering and drug trafficking conspiracy.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; U.S. Attorney Richard L. Durbin Jr. of the Western District of Texas; Special Agent in Charge Douglas Lindquist of the FBI’s El Paso, Texas, Office; and Special Agent in Charge Will Glaspy of the Drug Enforcement Administration’s (DEA) El Paso Division made the announcement.
Ricardo Valles De La Rosa (Valles), aka Chino, 52, of El Paso, pleaded guilty on January 13, before U.S. District Judge Kathleen Cardone of the Western District of Texas to racketeering conspiracy; conspiracy to distribute and possess with intent to distribute controlled substances; conspiracy to import heroin, cocaine and marijuana; and conspiracy to commit money laundering. As part of his plea, Valles agreed that he conspired to commit murder in a foreign country. Valles is one of 35 members and associates of the BA gang charged in a third superseding indictment unsealed in March 2011, with various counts of racketeering, murder, drug offenses, money laundering and obstruction of justice.
As alleged in the indictment, members and associates of the BA have engaged in a host of criminal activity, ranging from drug trafficking, extortion and money laundering to kidnapping and homicides, including the March 13, 2010, murders in Juarez of a U.S. consulate employee and her husband, as well as the husband of another U.S. consulate employee. These individuals were killed by the BA because they were mistakenly believed to be rivals associated with the Joaquin “El Chapo” Guzman Drug Trafficking Organization.
In connection with his plea, the defendant admitted that the BA gang is a paramilitary gang with members in West Texas and Juarez, Mexico, that operates both inside and outside the prison system, and engages in drug trafficking, money laundering, extortion, intimidation, violence, threats of violence and murder. In addition to profiting from drug importation and distribution, the gang also profits through the collection of a “street tax” or “cuota” through extortion from individuals engaged in both legal and illegal activities in the gang’s territory.
According to further admissions made in connection with his plea agreement, beginning in or around 1995, Valles became an associate of the BA while imprisoned at a Bureau of Prisons (BOP) facility, where he rose to the rank of sergeant. Following his release from the BOP facility and deportation to Juarez, in July 2007, Valles was promoted to lieutenant and placed in charge of prostitution and illegal after-hours alcohol sales in downtown Juarez, and also collected “cuota.” Additionally, Valles maintained contact on behalf of the BA with a Mexican law enforcement entity, and would use that contact to obtain information regarding the arrests of BA members, the activities and locations of rival gang members and the results of hits carried out by the BA. Further, Valles maintained rosters of BA members in Juarez and was in charge of conducting daily roll-calls, as well as maintaining communications between the BA in Juarez and BA members who were in and out of prison in the U.S.
In addition, Valles admitted that on March 13, 2010, upon instructions from a high-ranking BA member, Valles obtained the location of a specific vehicle and sent BA members to that location. Valles admitted that he was aware that he was assisting the other BA members to locate and commit crimes against the occupants of the vehicle, including murder. BA members subsequently located the vehicle and killed the driver, who was the husband of a U.S. Consulate employee.
The defendant was sentenced to life in prison on each of counts one through three, and to 240 months in prison on count four, all to run concurrently. The defendant was also sentenced to five years of supervised release on counts one through three, and three years of supervised release on count four.
Of the 35 defendants charged in this case, 33 have been apprehended, 25 of whom have pleaded guilty, one committed suicide while imprisoned during his trial and one was found guilty at trial. Most recently, Valles, Luis Hernandez Celis, aka Pac, and Alberto Nunez Payan, aka Fresa, were extradited from Mexico in October 2015.
The FBI’s El Paso Field Office, Albuquerque Field Office (Las Cruces Resident Agency); DEA Juarez; and DEA El Paso investigated the case. The Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Immigration and Customs Enforcement; U.S. Marshals Service; U.S. Customs and Border Protection; Federal Bureau of Prisons; U.S. Diplomatic Security Service; Texas Department of Public Safety; Texas Department of Criminal Justice; El Paso Police Department; El Paso County Sheriff’s Office; El Paso Independent School District Police Department; Texas Alcohol and Beverage Commission; New Mexico State Police; Dona Ana County, New Mexico, Sheriff’s Office; Las Cruces, New Mexico, Police Department; Southern New Mexico Correctional Facility; and Otero County Prison Facility New Mexico provided substantial assistance in the investigation.
Trial Attorneys Joseph A. Cooley and John C. Hanley of the Criminal Division’s Organized Crime and Gang Section, Trial Attorney Jay A. Bauer of the Criminal Division’s Human Rights and Special Prosecutions Section, and Assistant U.S. Attorney John Gibson of the Western District of Texas-El Paso Division are prosecuting the case. The Criminal Division’s Office of International Affairs and Office of Enforcement Operations provided valuable assistance in this matter.
Former Fort Stockton Teacher Sentenced to Federal Prison for Receipt and Possession of Child PornographyRead the Press Release
In Alpine today, a federal judge sentenced Javier Carlos Arteta Franco, a 59-year-old Venezuelan National and former elementary school teacher in Fort Stockton, to 160 months in federal prison followed by a lifetime of supervised release for receipt and possession of child pornography announced United States Attorney Richard L. Durbin, Jr., and Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez, El Paso Division.
On July 28, 2016, Arteta Franco pleaded guilty to one count of receipt of child pornography and one count of possession of child pornography. By pleading guilty, Arteta Franco admitted that from December 2014 to August 2015, he used a file-sharing program to download to his personal computer videos and images of minors engaging in sexually explicit conduct.
On August 19, 2015, HSI agents executed a search warrant at the defendant’s residence and seized his laptop computer. A forensics analysis of the computer revealed the presence of child pornography that had been downloaded from the Internet. Arteta Franco has remained in federal custody since his arrest by HSI agents on August 19, 2015.
“HSI and our law enforcement partners continue to police cyber space searching for predators who exploit the most vulnerable segment of our society — our children,” said Waldemar Rodriguez, special agent in charge of HSI El Paso. “This case is especially disturbing because of the perpetrator’s position of public trust and access to children.”
This case was investigated by the Immigration & Customs Enforcement (ICE) Homeland Security Investigations (HSI) in Alpine with assistance from the Fort Stockton Police Department and the Texas Department of Public Safety Criminal Investigations Division. Assistant U.S. Attorney Sandy Stewart prosecuted this case on behalf of the government.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about PSC, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/resources.html.
Former El Paso-Based Production Company Employee Sentenced to Federal Prison for Computer IntrusionRead the Press Release
In El Paso today, a federal judge sentenced 42-year-old Joe Vito Venzor to 18 months in federal prison for illegally accessing his former employer’s computer system and shutting it down announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation Special Agent in Charge Emmerson Buie, Jr., El Paso Division.
In addition to the prison term, Senior United States District Judge David Briones ordered that Venzor pay $57,397.76 restitution and be placed on supervised release for a period of three years after completing his prison term.
On March 30, 2017, Venzor pleaded guilty to one count of transmission of a program to cause damage to a computer. By pleading guilty, Venzor admitted that on September 1, 2016, after termination from his position at the company’s help desk, he logged onto the company’s network through an administrator account and shut down the company’s email server and application server while deleting systems files essential to restoring computer operations.
Because of the intrusion, 300 employees in the production and shipping factory were unable to work for nearly three hours before the decision was made to send them home for the rest of the shift. The distribution center was not able to ship any of their products and customers could not place orders online. The IT Managing Director also had to hire a third party IT staff to assist with setting up a new application server for the company. The company continued to suffer direct and indirect losses because of the intrusion into its computer server in the ensuing days and weeks, as they had to reconstruct files, and fulfill production and customer services issues.
“The FBI El Paso Division stands ready to work closely with our public and private sector partners to identify, pursue, and prosecute those who gain unauthorized access to proprietary data and threaten our cyber security,” stated FBI Special Agent in Charge Emmerson Buie, Jr., El Paso Division.
Assistant United States Attorneys Greg McDonald and Rifian Newaz prosecuted this case on behalf of the Government.
Alpine Man Sentenced to Federal Prison for Intentionally Setting U.S. Post Office AblazeRead the Press Release
In Alpine, a federal judge sentenced 59-year-old Karl Henry Peterson to 37 months in federal prison for setting the U.S. Post Office in Alpine ablaze last year announced United States Attorney Richard L. Durbin, Jr. and Inspector in Charge Adrian Gonzalez, U.S. Postal Investigation Service, Houston Division.
During yesterday’s sentencing hearing, United States District Judge David C. Guaderrama also ordered that Peterson pay $ 22,815.22 restitution and be placed on supervised release for a period of three years after completing his prison term.
On May 4, 2017, Peterson pleaded guilty to one count of arson involving a federal facility. By pleading guilty, Peterson admitted to setting fire to the U.S. Post Office during the early morning hours on October 12, 2016. As a result, the building suffered extensive damage.
The United States Postal Inspection Service, together with the Texas State Fire Marshal’s Office and the Alpine Police Department, investigated this case. Assistant United States Attorney James J. Miller, Jr., prosecuted this case on behalf of the Government.
Two Austin Psychologists, Owners of Psychological A.R.T.S., P.C., and a Patient Recruiter Indicted for Federal Health Care CrimesRead the Press Release
As part of the largest coordinated Health Care Fraud enforcement action to date, Federal and state authorities arrested two Austin psychologists who own and operate Psychological A.R.T.S., P.C., announced United States Attorney Richard L. Durbin, Jr., FBI Special Agent in Charge Christopher Combs, San Antonio Division, and Texas Attorney General Ken Paxton.
An indictment returned by a federal grand jury in Austin charges 72-year-old Dr. William Joseph Dubin and his son, 32-year-old Dr. David Fox Dubin, with one count of conspiracy to violate the federal anti-kickback law; five counts of paying illegal kickbacks; one count of conspiracy to commit health care fraud; seven counts of health care fraud and aiding and abetting health care fraud; and, six counts of aggravated identity theft, and aiding and abetting aggravated identity theft. A third defendant in this indictment, 67-year-old patient recruiter Glen Elwood McKenzie, Jr., of Cedar Park, TX, is charged with one count of conspiracy to violate the federal anti-kickback law and five counts of receiving illegal kickbacks.
According to the indictment, Dr. William Dubin, and Dr. David Dubin, are licensed psychologists who operated Psychological A.R.T.S. in Austin. 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. The indictment alleges that, in exchange for kickbacks paid to him, McKenzie used his position at the emergency shelter and his contacts with other similar shelters to refer children and youth to Psychological A.R.T.S., for comprehensive mental health assessments. From January 2011 to June 2015, Dr. William Dubin and Dr. David Dubin allegedly caused fraudulent billings totaling approximately $300,000 to be submitted to the Texas Medicaid program and the Texas Vocational Rehabilitation Services program for various psychological services. Upon receipt of payment for their services, the doctors paid McKenzie a 10-percent kickback from the money paid to Psychological A.R.T.S.
According to the allegations of the indictment, Dr. William Dubin, and Dr. David Dubin directed students and interns, who were unlicensed and unsupervised, to conduct psychiatric diagnostic evaluations of the children and youth referred to them by McKenzie. The students and interns then prepared psychological evaluation reports, which included the student’s diagnoses of the psychological condition of each child and youth, the student’s impressions of the risk of each child and youth for future obstructive and disruptive behaviors, and the student’s recommendations for future treatment. The indictment alleges that Dr. William Dubin, and Dr. David Dubin, then billed or caused others to send bills to Medicaid that falsely claimed that Dr. William Dubin had done the work that was actually done by the unlicensed students and interns. The Medicaid rules expressly prohibited psychologists from billing for services performed by students and interns. The Medicaid rules allow a psychologist to bill, at a reduced fee, for services provided by a supervised licensed psychological associate. The reduced fee is seventy percent of the fee paid for work performed by the licensed psychologist.
The indictment alleges that Dr. William Dubin, and Dr. David Dubin also directed unsupervised licensed psychological associates to prepare psychiatric diagnostic evaluations of the children and youth referred to them by McKenzie. Dr. William Dubin and Dr. David Dubin then billed, or caused others to send bills, Medicaid falsely claiming that Dr. William Dubin had done work that was actually done by the associates. This resulted in a larger payment from Medicaid and a larger percentage of profit for Psychological A.R.T.S., Dr. William Dubin and Dr. David Dubin.
Upon conviction, each count related to illegal kickbacks calls for up to five years in federal prison; each count related to Health Care Fraud calls for up to ten years in federal prison; and, each count related to aggravated identity theft calls for up to two years in federal prison.
This indictment resulted from an investigation conducted by special agents with the Federal Bureau of Investigation together with investigators from the Texas Attorney General’s Medicaid Fraud Control Unit. Special Assistant United States Attorney Rex Beasley is prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Del Rio Man Sentenced to 121 Months in Federal Prison for Possession of Child PornographyRead the Press Release
In Del Rio, a federal judge sentenced 30-year-old Ramiro Martinez to 121 months in federal prison followed by ten years of supervised release for possession of child pornography announced United States Attorney Richard Durbin, Jr. and Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden, San Antonio.
During Monday’s sentencing hearing, U.S. District Judge Alia Moses also ordered that Martinez pay a $2,000 fine and forfeit the computer and other property he used in the commission of the offense.
On May 21, 2015, Martinez pleaded guilty to one count of possession of child porn. By pleading guilty, Martinez admitted that from August 2014 through October 2014, he was in possession of child pornography.
On October 30, 2014, HSI agents executed a search warrant at the defendant’s residence and seized the defendant’s computer and other related material. A forensics examination of the seized items revealed the presence of more than 125 images and videos depicting the sexual exploitation of children.
“As this sentence makes clear, those who exploit innocent children will face serious consequences,” said Special Agent in Charge Shane Folden, HSI San Antonio. “Targeting these crimes is a high priority for HSI. We will continue to dedicate law enforcement resources to identify and bring to justice child predators that traumatize and victimize children.”
HSI conducted this investigation. Assistant United States Attorney Matthew H. Watters prosecuted this case on behalf of the Government.
San Antonio Couple Sentenced to Federal Prison for Conspiring to Commit Wire Fraud and Identity TheftRead the Press Release
In San Antonio this afternoon, a federal judge sentenced both 38-year-old Jessica Rivas Alva and her husband, 40-year-old Eric Jon Alva, to six months in federal prison for defrauding undocumented immigrants and their family members out of money by falsely claiming to work on behalf of two San Antonio attorneys, announced United States Attorney Richard L. Durbin, Jr., and Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden.
In addition to the prison terms, United States District Judge Xavier Rodriguez ordered that the defendants pay $3,000 restitution to their victims and be placed on supervised release for a period of three years after completing their 6-month prison terms.
On March 2, 2016, both defendants pleaded guilty to one count of conspiracy to commit wire fraud and aggravated identity theft. The charge to which the defendants pleaded guilty alleged that between March 2015 and May 2015, the couple conspired to collect legal fees from incarcerated undocumented immigrants and/or their families under false pretenses.
According to the charge, in April 2015, the Alvas faxed forged letters fraudulently using the name and state bar number of two San Antonio-based attorneys to enable Jessica Alva to gain access to two immigration detention facilities in Louisiana. While at the South Louisiana Correctional Center in Basile and the LaSalle Detention Facility in Jena, Jessica Alva met with detained immigrants and offered to have the attorneys provide legal services for a fee. The immigrants’ families were then instructed to deposit those fees into bank accounts that the Alvas controlled. Jessica Alva was not an attorney and was not actually working for either attorney at the time she made the fraudulent representations. Furthermore, at the time Jessica Alva entered the detention facilities, she was enjoined by a Texas state court from entering any immigration facility in the United States unless accompanied by an attorney for whom she worked.
The conspiracy charge to which the Alvas pleaded guilty also alleged that during telephonic immigration hearings before an immigration court, Eric Alva impersonated one of the San Antonio attorneys and claimed to represent the detained immigrant whose case was before the court.
Agents with HSI and Enforcement and Removal Operations with Immigration and Customs Enforcement investigated this case. We appreciate the cooperation of the Consumer Protection Division of the Texas Attorney General's Office during this investigation. Assistant United States Attorney Alan Buie prosecuted this case on behalf of the Government.
Two Presidio County Officials Arrested on Federal Bribery Related ChargesRead the Press Release
In Midland today, FBI agents arrested 55–year-old Lorenzo Padilla Hernandez, Presidio County Precinct 3 Commissioner, and 65-year-old Carlos Eduardo Nieto, Special Projects Coordinator for the City of Presidio and Presidio Independent School District trustee, on federal bribery, fraud, and deprivation of honest services charges announced United States Attorney Richard Durbin, Jr., and FBI Special Agent in Charge Emmerson Buie, Jr., El Paso Division.
A six-count federal grand jury indictment, unsealed today, charges Hernandez with two counts of bribery concerning programs receiving federal funds; conspiracy to commit mail and wire fraud; and, two counts of wire fraud and the deprivation of honest services. The indictment charges Nieto with one count of conspiracy to commit mail and wire fraud and one count of mail fraud and the deprivation of honest services.
The indictment alleges that since August 2015, the defendants conspired 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. The indictment further alleges that 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.
All of the charges, with the exception of the bribery charges, call for up to 20 years in federal prison upon conviction. Each bribery charge calls for up to ten years in federal prison upon conviction.
Both defendants remain in federal custody. Initial appearances before United States Magistrate Judge David Counts are scheduled for tomorrow at 10:30am in Midland. No other court dates are scheduled.
“The individuals charged hold positions of public trust and will be held accountable. The FBI is committed to aggressively investigating allegations of public corruption and, where warranted, seeking appropriate federal charges,” stated Emmerson Buie, Jr., Special Agent in Charge of the El Paso Division of the FBI.
The FBI with assistance from Homeland Security Investigations (HSI) and the Texas Department of Public Safety Criminal Investigations Division is investigating 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 James J. Miller, Jr., and William F. Lewis are prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Los Zetas Drug Cartel Sicario and Piedras Negras Plaza Boss Sentenced to Life in Federal PrisonRead the Press Release
In San Antonio today, a federal judge sentenced 34-year-old Marciano Millan Vasquez, a high ranking member and a former sicario for the Los Zetas drug cartel, to seven (7) consecutive life imprisonment sentences for committing and aiding and abetting the commission of numerous murders and other acts of violence, drug trafficking and weapons trafficking in Northern Mexico in furtherance of a drug distribution operation announced United States Attorney Richard L. Durbin, Jr.; Drug Enforcement Administration (DEA) Special Agent in Charge Joseph M. Arabit, Houston Division; Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden; and, Texas Department of Public Safety Director Steve McCraw.
“Without mercy or compunction he brutally murdered anyone and everyone as it suited him and his cartel, at times inflicting the cruelest of pain, forcing relatives to watch their loved ones murdered before he turned his blades on them,” stated United States Attorney Richard L. Durbin, Jr. “Today’s sentence marks an end to his reign of terror over the drug plaza in Piedras Negras.”
On July 19, 2016, following a three-week trial, the jury found Vasquez (aka “Chano”), guilty on all charges including killing while engaged in drug trafficking; conspiracy to distribute and import marijuana; distribution of controlled substances outside the U.S. intending that they be imported into the U.S.; employing minors in a drug crime; conspiracy to distribute cocaine; conspiracy to distribute methamphetamine; conspiracy to possess firearms in furtherance of a drug trafficking crime; and, making a false statement to a federal official.
Testimony during trial revealed that Vasquez was a member of Los Zetas and served as a sicario (or assassin), drug trafficker and weapons distributor until 2013 when he took over control of the Piedras Negras “Plaza” (or drug trafficking corridor) for the Los Zetas led by Miguel Trevino Morales (aka “Z-40”) and his brother, Oscar Omar Trevino Morales (aka “Z-42”). Testimony also revealed that as the “Plaza boss,” Vasquez oversaw the importation and distribution of more than 100,000 kilograms of marijuana, tens of thousands of kilograms of cocaine into the United States and obtained and distributed firearms amongst Los Zetas members. Vasquez also personally distribute multi-kilogram quantities of methamphetamine in the United States. Furthermore, testimony revealed that Vasquez was responsible for the murders of at least 29 individuals in Northern Mexico between January 2009 and July 2015.
In one incident, testimony revealed that in 2013, Vasquez murdered a young girl by dismembering her with an axe and burning her body in front of her parents while laughing and saying, “so you’ll remember me.” Vasquez then ordered that the mother be killed in similar fashion while forcing the father to watch. Vasquez then ordered that the father be killed. According to testimony, Vasquez did so because he and other Los Zetas wanted the father to suffer. In a prior incident, testimony revealed that Vasquez participated in the massacre of numerous people in Piedras Negras and Allende, Coahuila, Mexico, at the hands of Los Zetas members in March of 2011.
Vazquez has remained in federal custody since his arrest in San Antonio on July 15, 2015.
“The life sentence imposed on Vasquez should be a reminder to all criminals that violence and victimization of the public will not be tolerated and will be met with the full weight of the law,” said Special Agent in Charge Shane Folden, HSI San Antonio. “HSI and its law enforcement partners are committed to ensuring the safety and security of our communities in south Texas.”“Marciano Millan Vasquez’s sentence to life in federal prison sends a message of our unending resolve to pursue drug traffickers who wreak havoc in our communities. It is another example of our success in the fight against major Mexican drug cartels operating in the United States,” stated Joseph M. Arabit, Special Agent in Charge of the Drug Enforcement Administration, Houston Field Division.
This case was investigated by the DEA, HSI, and the Texas Rangers together with the U.S. Marshals Service; U.S. Border Patrol; Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); Federal Bureau of Investigation (FBI); U.S. Customs and Border Protection (CBP); HSI Office of the Chief Counsel; Texas Department of Public Safety (DPS); Texas National Guard; Guadalupe County Sheriff’s Office; Maverick County Sheriff’s Office; Maverick County Constable’s Office; and the police departments of Austin, San Antonio, Hollywood Park, Castle Hills, Live Oak, Leon Valley, Eagle Pass, Eagle Pass Independent School District, and Richland (MS).
The Los Zetas is a powerful drug trafficking organization operating out of Mexico, which funnels thousands of kilograms of cocaine, marijuana, methamphetamine, and other narcotics into the United States each year. Los Zetas are one of the largest drug cartels operating in Mexico today, with their influence stretching from Central America through Mexico and into cities throughout the United States. organization is based in the city of Nuevo Laredo, Tamaulipas, Mexico, and has control over several other Mexican cities located on the United States-Mexico border, including Ciudad Acuna and Piedras Negras—both located in Coahuila, Mexico. large-scale drug trafficking of this organization generates multi-million dollar revenues.
The Los Zetas were first established to be the lethal enforcers for another Mexican drug cartel: The Gulf Cartel. The leaders of the Gulf Cartel recruited former members of the Mexican Army Special Forces from the Groupo Aeromovil de Fuerza Especiales (GAFES) in the late 1990s. However, over time the Los Zetas broke away from the Gulf Cartel and began to operate independently. Heriberto Lazcano, aka Z-3, was the leader of the Los Zetas from 2004 until his death on October 7, 2012 in Coahuila, Mexico. After his death, Miguel Angel Trevino Morales, aka Z-40 and his brother Oscar Omar Trevino Morales, aka Z-42 assumed the leadership positions. In April 2009 the President of the United States identified the Los Zetas as a significant foreign narcotics trafficker under the Kingpin Act and the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated Z-40 and Z-42 as specially designated narcotics traffickers pursuant to the Kingpin Act in July 2009 and March 2010, respectively.
The Los Zetas is organized in a hierarchical structure with certain groups or cells operating in tiers of command. Its members purchase bulk quantities of narcotics and sell them abroad as well as to other non-Los Zetas drug traffickers operating in Mexico. In addition to those considered actual members of the Los Zetas, any large scale narcotics trafficker operating in a region controlled by the Los Zetas must support and associate with the Los Zetas or risk execution. The Los Zetas not only supplies the drugs (marijuana, cocaine, methamphetamine, etc.) to the traffickers, they charge the traffickers a fee (called the “quota”) for the privilege of operating in Los Zetas territory. That fee includes cash payments as well as firearms and other munitions (ammunition, magazines, etc.). In addition to allowing these traffickers to operate in their territory, the Los Zetas had control of law enforcement entities and political subdivisions within the State of Coahuila, which allowed them to operate with impunity and to obtain real-time intelligence about the movement and location of the Mexican military and law enforcement within the State.
Gameday Entertainment Chairman of the Board Sentenced to Four Years in Federal Prison for Defrauding San Antonio Victim of Millions of DollarsRead the Press Release
In San Antonio today, 49-year-old investment counselor Charles Augustus Banks, IV, an executive with Gameday Entertainment, LLC (Gameday), was sentenced to four years in federal prison for defrauding a San Antonio victim of millions of dollars announced United States Attorney Richard Durbin, Jr., and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
In addition to the prison term. United States District Judge Fred Biery ordered that Banks pay $7.5 million restitution and be placed on supervised release for a period of three years after completing his prison term. Judge Biery also ordered Banks, who is currently on bond, to report to federal authorities as early as August 28, 2017, to begin serving his sentence.
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.
Former San Antonio Attorney Todd Prins Pleads Guilty to Wire FraudRead the Press Release
Former San Antonio lawyer Todd Prins faces up to 20 years in federal prison and a fine of up to $250,000 after pleading guilty earlier today to one count of wire fraud announced United States Attorney Richard Durbin, Jr., and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
Appearing before United States Magistrate Judge John Primomo, Prins, age 51, admitted that from August 16, 2013, to December 22, 2016, he defrauded multiple victims of their money by means of false and fraudulent pretenses, representations and promises.
According to court records, Prins led clients to believe that a lawsuit Prins filed on their behalf was successful, resulting in a judgment in their favor. To convince his clients, Prins fraudulently created forged court rulings, opinions and orders, purportedly issued by various state and federal courts bearing the signatures of the respective judges. Those courts included Bexar County District Court, the Texas Fourth Court of Appeals, the Texas Supreme Court, United States District Court for the Western District of Texas, and the United States Courts of Appeals for the Fifth and Seventh Circuits.
Furthermore, Prins caused an entity which had purchased real estate in a foreclosure sale conducted by Prins’ law firm to wire transfer approximately $2,400,000 to Prins’ law firm’s trust account. Rather than maintaining those funds in his trust account for proper distribution, Prins caused approximately $2,000,000 of that money to be wire transferred to another bank account he controlled. During October and November 2016, Prins misappropriated and converted to his own use approximately $800,000 of the $2,400,000. Prins, having improperly transferred the $2,000,000 from his trust account to his other account, falsely told a principal of his client-seller that the purchaser’s $2,400,000 was still in his trust account. To support that false claim, Prins fraudulently created and sent by e-mails and text messages what appeared to be screen shots of the trust account showing the balance in the trust account to be in excess of $3,000,000. In fact, the true balance of the trust account was less than $1,000, having been $2,041.17 prior to the receipt of the $2,400,000.
Prins remains on bond pending sentencing. Sentencing is scheduled for September 18, 2017, before Senior United States District Judge David A. Ezra.
The FBI conducted this investigation. Assistant United States Attorneys Jay Hulings and William R. Harris are prosecuting this case on behalf of the Government.
Former Fugitive Mauricio Sanchez-Garza Sentenced to Federal Prison for Money LaunderingRead the Press Release
In San Antonio this afternoon, United States District Judge Xavier Rodriguez sentenced 46-year-old Mexican National Mauricio Sanchez-Garza to 63 months in federal prison followed by three years of supervised release for laundering millions of dollars in Sinaloa Cartel drug proceeds United States Attorney Richard L. Durbin, Jr.; Drug Enforcement Administration (DEA) Special Agent in Charge Joseph M. Arabit, Houston Division; Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden; Internal Revenue Service-Criminal Investigation Special Agent in Charge William Cotter; and, Texas Attorney General Ken Paxton.
On October 20, 2016, Sanchez-Garza pleaded guilty to one count of conspiracy to commit money laundering. According to court records (SA11CR616), from 2005 until July 2011, Mauricio Sanchez-Garza, Jorge Sanchez and Mauricio’s brother, 47-year-old Mexican National Alejandro Sanchez-Garza, conspired to transport into the United States and conduct financial transactions with proceeds derived from illegal drug trafficking in order to conceal the nature of the funds. Specifically, the defendants entered into joint ventures with drug traffickers by funneling proceeds generated from drug trafficking through their businesses and corporate entities to make the proceeds appear to be legitimate and lawful; insulate the drug traffickers from evidence of criminal involvement in the proceeds; and, to attempt to make a profit for both the defendants and the drug traffickers.
Mauricio Sanchez-Garza had remained a fugitive since fleeing the United States to avoid prosecution in 2010. He was extradited to the United States from Mexico in July 2016 and has remained in federal custody since.
On August 19, 2014, Alejandro Sanchez-Garza was sentenced to 30 months in federal prison followed by three years of supervised release after pleading guilty to one count of conspiracy to commit money laundering.
On June 12, 2013, Jorge Sanchez was sentenced to 48 months in federal prison followed by three years of supervised release after pleading guilty to one count of extortion.
The Drug Enforcement Administration (DEA), Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, and the Texas Attorney General’s Office investigated this case. The Justice Department's Office of International Affairs provided assistance with the extradition.
Eight Associated with La Familia Cartel Sentenced to Federal Prison for Roles in Austin-Based Meth Trafficking OperationRead the Press Release
In Austin today, a judge sentenced to federal prison eight members of a drug trafficking cell associated with the LaFamilia cartel operating primarily in Austin and San Antonio announced United States Attorney Richard L. Durbin, Jr., and Drug Enforcement Administration Special Agent in Charge Joseph M. Arabit, Houston Division.
United States District Judge Lee Yeakel sentenced: Oscar Maldonado, age 32 of Austin, to 78 months imprisonment; Julio Rogel, age 20 of Austin, to 88 months imprisonment; Jose Duenas, age 35 of Austin, to 60 months imprisonment; Jorge Arellano, age 36 of Austin, to 88 months imprisonment; Javier Jaimes, age 28 of Austin, to 72 months imprisonment; Javier Alvarez, age 26 of San Antonio, to 57 months imprisonment; Jaime Carbajal, age 26 of Austin, to 42 months imprisonment; and, Hugo Rodriguez, age 31 of Austin, to 70 months imprisonment. Three additional members of the conspiracy are scheduled to be sentenced at a later date before Judge Yeakel.
According to court records, from December 2015 until September 2016, the defendants were responsible for receiving and distributing in both Austin and San Antonio large amounts of methamphetamine that had been smuggled into the United States from Mexico.
During the investigation, agents recovered 75 kilograms of methamphetamine, nine kilograms of cocaine, and approximately $175,000 in U.S. Currency attributed to this organization.
The investigation was conducted by the High Intensity Drug Trafficking Area (HIDTA) unit in Austin comprised of the Drug Enforcement Administration (DEA), Federal Bureau of Investigation (FBI), Texas Department of Public Safety, Cedar Park Police Department, Austin Police Department and the Hays County Sheriff’s Office. Assistant United States Attorney Dan Guess is prosecuting this case on behalf of the Government.
Austin Pilot Pleads Guilty to Transporting Marijuana in His PlaneRead the Press Release
In Austin, 64–year-old pilot Wayne Douglas Brunet faces up to 20 years in federal prison after pleading guilty this afternoon to possession with intent to distribute between 50 and 100 kilograms of marijuana announced United States Attorney Richard L. Durbin, Jr., and Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden, San Antonio Division.
On March 20, 2017, state authorities arrested Brunet at the Llano (TX) Municipal Airport after discovering approximately 206 pounds of hydroponic marijuana on board his aircraft. According to court records, HSI agents were prepared to interdict Brunet as he attempted to land at an unmanned airport in Bulverde (TX). The Department of Homeland Security Customs and Border Protection (CBP) Air and Marine Operation Center (AMOC) began tracking his single-engine plane after observing that it had a suspicious flight pattern from Medford, OR, to Texas and had landed only once in Holbrook, AZ, to refuel.
Brunet landed at the unmanned airport in Bulverde, but departed again after spotting authorities on the ground. Brunet then proceeded to the Lago Vista (TX) airport, but again, aborted his landing as he did in Bulverde when encountered by law enforcement. Brunet then proceeded to the Llano Municipal Airport where he landed at approximately midnight. After bringing the aircraft to a stop, Brunet attempted to flee on foot, but was apprehended on the tarmac by the Texas Department of Public Safety Air Unit. Authorities recovered 15 duffle bags filled with vacuum-sealed packages of marijuana along with approximately $5,400 in U.S. Currency.
Brunet remains in federal custody awaiting sentencing. No date has been set yet.
HSI agents conducted this investigation together with assistance from CBP AMOC, Texas Department of Public Safety Air Unit and the Llano County Sheriff’s Office. Assistant United States Attorney Matthew Devlin is prosecuting this case on behalf of the Government.
Two Members of the “Gangster Disciple” Gang Sentenced to a Total of More than 500 Months in Federal PrisonRead the Press Release
Memphis, TN – Two members of the violent "Gangster Disciples" street gang were sentenced to federal prison. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the sentences today.
The Gangster Disciples are a violent criminal gang which began in the Chicago, Illinois area. In the 1970’s, the leaders of two different Chicago-based gangs, the Black Disciples and the Supreme Gangsters, aligned their respective groups and created the Gangster Disciples.
Once united, the Gangster Disciples began recruiting heavily in Chicago, within Illinois jails and prisons, and throughout the United States. By the mid-1980’s, the group had spread throughout the Midwestern and Eastern United States. The Gangster Disciples are active in approximately 35 states including Tennessee.
According to information presented at sentencing, on June 21, 2014, Florence Anthony, a member of the Gangster Disciples, got into an altercation with a group of individuals at the Hillview Apartments located in Memphis, Tennessee. Anthony reported the confrontation to her Gangster Disciples chain-of-command. Based on Anthony’s report, the Gangster Disciples chain-of-command issued orders to retaliate against those responsible for the attack on Anthony and her children.
At approximately 10:30 p.m., Erik Reese and four other members of the Gangster Disciples returned to the Hillview Apartments to retaliate against what were identified as rival gang members. Each individual was armed with firearms and proceeded on foot through the apartments shooting four juveniles and one adult male. All five victims survived, but some sustained serious bodily injuries.
On March 8, 2017, seven members of the Gangster Disciples pled guilty to committing violent crimes in aid of racketeering activity.
On June 22, 2017, Senior District Judge Samuel H. Mays sentenced Florence Anthony to 135 months in federal prison, along with 3 years’ supervised release. Erik Reese was sentenced to 382 months imprisonment and 3 years’ supervised release.
The case was investigated by the Federal Bureau of Investigation, the Multi-Agency Gang Unit, Police Departments for Memphis, Bartlett and Germantown; Sheriff’s Offices for Tipton, Desoto and Shelby; and the Tennessee Bureau of Investigation Crime Lab.
Assistant U.S. Attorneys Jerry Kitchen and,Michelle Kimbril-Parks, and Special Assistant U.S. Attorney Sam Stringfellow, prosecuted this case on the government’s behalf.
Federal Jury Convicts Two Former Crystal City Officials on Bribery and Wire Fraud ChargesRead the Press Release
In Del Rio this morning, a federal jury convicted two former Crystal City, TX, officials for their roles in a bribery and kickback scheme which decimated city coffers announced United States Attorney Richard Durbin, Jr. and FBI Special Agent in Charge Christopher Combs, San Antonio.
The jury convicted 54-year-old former City Manager William James Jonas, III, 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.
The jury also convicted 40-year-old former Mayor Ricardo 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.
“By this verdict, a jury of their peers has held these defendants accountable for their inexcusable abuse of the public trust. Corruption of the kind uncovered in this case corrodes confidence in government and undermines our belief that public officials work for our benefit, not their personal enrichment. We are grateful for the jury's hard work and good judgment, which may restore respect for the work of honest public servants,” stated United States Attorney Richard L. Durbin, Jr.
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.
Testimony further revealed that Jonas was involved in a wire fraud scheme in connection with a multi-million-dollar debt offering in December 2014, which was intended to pay for various improvements to the City’s infrastructure, including replacing the City’s water meters, certain heating and air conditioning equipment, and lighting. Under various documents relating to the debt offering, Crystal City agreed to place the $2.25 million generated by the sale of the certificates of obligation into separate accounts and to use those funds only for specified purposes. Instead, Jonas caused those monies to be deposited into the City’s General Fund in December 2014, where the funds were used to pay for Jonas’ salary and other unauthorized expenditures.
According to the indictment, the balance in the City’s General Fund after the deposit of the raised funds was $2,207,050.62. The balance in the City’s General Fund on or about October 31, 2015, was $2,199.95. On November 6, 2015 Crystal City still owed approximately $735,048.79 in payments to the company that performed the infrastructure improvements.
Jonas and Lopez face up to five years in federal prison for the conspiracy to commit bribery charge, up to ten years in federal prison for each bribery related charge, and up to 20 years in federal prison for each wire fraud related charge. Both were remanded into the custody of the U. S. Marshals pending sentencing, which will be scheduled by order at a later date.
“We would like to thank the San Antonio Police Department who were full partners in this investigation. We also would like to thank the Texas Department of Public Safety and the Texas Rangers for their assistance. This case reflects our commitment to the citizens of Crystal City to aggressively and relentlessly root out criminal corruption in our community,” said Christopher Combs, Special Agent in Charge of the FBI’s San Antonio Office. “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 exposed. In this effort one of our most important partners is the public, and we encourage honest citizens to report suspicious activity to the FBI at 210-225-6741.”
Four other defendants in this case—former Mayor Pro-Tem Rogelio Mata, former City councilman Roel Mata, former City Councilman Gilbert Urrabazo, and businessman Ngoc Tri Nguyen—each already entered guilty pleas to a federal programs bribery charge and are awaiting sentencing. All face up to ten years in federal prison and up to a $250,000 fine at sentencing.
The FBI, led by a San Antonio Police Department Task Force Officer, conducted this investigation with the assistance of the Texas Department of Public Safety Criminal Investigative Division and the Texas Rangers.
Assistant United States Attorneys Jay Hulings and William R. Harris are prosecuting this case on behalf of the Government.
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San Antonio Man Sentenced to Federal Prison for Distribution of Child PornographyRead the Press Release
In San Antonio this morning, 37-year-old Mark Grimes was sentenced to 185 months in federal prison for distribution of child pornography announced United States Attorney Richard Durbin, Jr. and FBI Special Agent in Charge Christopher Combs, San Antonio.
In addition to the prison term, Senior United States District Judge David A. Ezra ordered that Grimes pay $26,500 restitution to the victims and be placed on supervised release for a period of ten years after completing his prison term. Following the sentencing hearing, Judge Ezra remanded Grimes into federal custody.
On June 2, 2016, Grimes pleaded guilty to one count of distribution of child pornography. By pleading guilty, Grimes admitted that in December 2013, he used his computer to distribute child pornography to others using a peer-to-peer file-sharing program. Agents from the FBI’s San Antonio Division executed a search warrant for the defendant’s residence on August 5, 2014, where they seized the defendant’s computer. A subsequent forensics evaluation of the computer revealed the presence of approximately 3,800 images of child pornography.
The Federal Bureau of Investigation conducted this investigation. Assistant United States Attorney Tracy Thompson prosecuted this case on behalf of the Government.
Federal and State Authorities in El Paso Arrest 14 Defendants on Federal Drug Trafficking/Money Laundering ChargesRead the Press Release
This week, federal and state authorities arrested 14 members of the Orrantia Drug Trafficking Organization, including ringleader Mario Armando Orrantia, on federal drug trafficking charges announced United States Attorney Richard L. Durbin, Jr. and Special Agent in Charge Will Glaspy, U.S. Drug Enforcement Administration.
Those arrested include:
Name Age Residence Mario Armando Orrantia (aka “Quezada”) 51 El Paso Carmen Alfredo Marquez-Castillo (aka “Viejo”, “Viejito”) 63 El Paso Angela Leon (aka “Menona”) 34 El Paso Humberto Aleman-Limas (aka “Paquetes”) 34 El Paso Eduardo Rubalcaba 42 El Paso Hugo Arturo Faudoa 51 El Paso Jerry Minsu Flowers 45 El Paso Pedro Jimenez 43 El Paso Erik Mendoza 34 El Paso Rosalina Gallegos 40 El Paso Bryan Ramirez-Guerrero 22 El Paso Joshua Angel Talamantes (aka “Pirata”) 27 El Paso Jerry Lewis 64 El Paso Jose Reyes Valdez (aka “Paco”, “Gordo”, “Gordito”) 39 Cincinnati, OHA federal grand jury indictment charges all of the defendants with the exception of Ramirez-Guerrero, and Gallegos with conspiracy to possess with intent to distribute cocaine. The indictment also charges Orrantia, Carmen Marquez-Castillo, Jimenez, Lewis and Talamantes with conspiracy to possess with intent to distribute marijuana. The indictment also charges Orrantia, Carmen Marquez-Castillo, Rubalcaba, Faudoa, Flowers, Valdez, and Mendoza with one substantive drug possession with intent to distribute charge. The indictment also charges Orrantia, Carmen Marquez-Castillo, and Leon with two counts; Valdez, Aleman-Limas, Rubalcaba, Faudoa, Flowers, Jimenez and Talamantes with one count of conspiracy to commit money laundering. The indictment also charges Ramirez-Guerrero with one count of bulk cash smuggling.
A separate, but related, indictment charges Talamantes and Gallegos with one count of conspiracy to possess with intent to distribute marijuana and one count of possession with intent to distribute marijuana.
Authorities allege that this organization, under the leadership of Orrantia, Carmen Marquez-Castillo and Valdez, was responsible for the smuggling into the El Paso area hundreds of kilograms of cocaine and marijuana. The narcotics would subsequently be transported to areas across the United States, including Ohio, South Carolina, and Colorado, for further distribution. Defendants would also collect, transport and launder cash proceeds derived from the sale of narcotics.
During this investigation, authorities seized approximately five kilograms of cocaine, 600 kilograms of marijuana, seven vehicles, and over $138,000 in U.S. currency attributed to the Orrantia DTO.
All of the defendants remain in federal custody pending detention hearings expected to occur in U.S. Magistrate Court in El Paso next week. Upon conviction, all but Gallegos and Ramirez-Guerrero face between ten years and life in federal prison. Gallegos faces up to five years imprisonment upon conviction of the conspiracy charge and up to 20 years imprisonment upon conviction of the marijuana possession charge. Ramirez-Guerrero faces up to five years imprisonment on the bulk cash smuggling charge.
“This week, DEA and our federal, state and local law enforcement partners severely disrupted the Orrantia Drug Trafficking Organization operating here in El Paso,” stated Will R. Glaspy, Special Agent in Charge, El Paso Division. “This organization was disguising criminal activity in the form of legitimate business and threatening the safety of the communities in which we work and live. DEA, along with our law enforcement partners, remains committed to bringing to justice those who import and then distribute illegal drugs in our communities.”
These federal charges resulted from an Organized Crime Drug Enforcement Task Force (OCDETF) investigation conducted by the Drug Enforcement Administration with assistance from the United States Marshals Service and Homeland Security Investigations (HSI). The U.S Border Patrol, U.S. Customs and Border Protection Office of Field Operations (CBP-OFO), Federal Bureau of Investigation (FBI), El Paso Police Department, El Paso County Sheriff’s Office, Texas Department of Public Safety (DPS) , Texas Alcoholic Beverage Commission (TABC), and the Anthony Police Department assisted with local arrests.
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.
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.
Austin Couple and Relative Indicted in Connection with Fraud SchemeRead the Press Release
Federal and state authorities today arrested 37-year-old Selica Lacole Dawson (aka “Selica Granderson”), her husband, 44-year-old Roosevelt Granderson, II, and her mother, 52-year-old Brenda Dawson of Waxahachie, TX, on federal charges in connection with a scheme to collect over $258,000 federal benefits they were not entitled to announced United States Attorney Richard L. Durbin, Jr.; and Social Security Administration Office of Inspector General (SSA-OIG) Special Agent in Charge Robert Feldt, Dallas Division.
A nine-count federal grand jury indictment, returned yesterday, charges Selica Granderson with three counts of theft of government funds; two counts of supplemental security income benefits fraud; and, one count of bankruptcy fraud. The indictment charges Roosevelt Granderson with one count of making a false statement to federal investigators and one count of misprision of felony. The indictment charges Brenda Dawson with one count of supplemental security income benefits fraud.
The indictment alleges that Selica Granderson defrauded the Social Security Administration’s Supplemental Security Income (SSA-SSI) program of more than $183,000 from April 2005 to May 2017; the Supplemental Nutrition Assistance Program (SNAP) of more than $26,000 from December 2010 through October 2016; and, the Medicaid Insurance Program of an estimated $49,000 from December 2010 to August 2016.
According to court documents, the fraud loss to these three programs stems back to 2008, when Selica and Roosevelt Granderson who were married, failed to report their marriage, living arrangements, and income/resources. Reporting the same would have disqualified Selica Granderson from receiving any benefits as a representative payee for their two children. Selica Granderson perpetuated the fraud through the years by failing to report these disqualifying events to the SSA when making Redetermination Statements related to her children’s continued eligibility for SSI benefits. The indictment alleges that in November 2015, Selica Granderson fraudulently filed a Chapter 7 Bankruptcy petition in the Western District of Texas. In her petition, she failed to disclose the true nature of their assets by requesting relief as “Selica Dawson” and “Roosevelt Dawson,” not Selica and Roosevelt Granderson.
The indictment also alleges that Roosevelt Granderson, who was interviewed by SSA-OIG regarding his wife’s SSI fraud as it related to her continued eligibility, denied living with his wife and children making other materially false statements, knowing the same to be false. Roosevelt Granderson’ s charges stem from materially false statements that were key to SSA’s determination of Selica Granderson’s eligibility for SSI, to which she was not entitled.
The indictment also alleges that on December 8, 2016, Brenda Dawson filed a fraudulent application for SSA-SSI benefit payments on behalf of Selica’s children.
Theft of Government funds calls for up to ten years in federal prison upon conviction. Bankruptcy fraud and supplemental security income benefits fraud both call for up to five years in federal prison upon conviction. Misprision of felony calls for up to three years in federal prison upon conviction.
Authorities arrested Selica and Roosevelt Granderson this morning without incident at the Austin Bergstrom International Airport. Dawson was arrested this afternoon in Waxahachie.
U.S. Magistrate Judge Mark Lane released Selica and Roosevelt Granderson on $10,000 unsecured bonds following their initial appearances this afternoon in Austin. Dawson is expected to make her initial appearance tomorrow in federal court in Dallas. No further hearings have been scheduled at this time.
Agents with the SSA-OIG together with the Texas Health and Human Services – Office of Inspector General investigated this case. The U.S. Marshals Service and the Austin Police Department assisted with today’s arrests. Special Assistant United States Attorney Yvonne Gonzalez is prosecuting this case on behalf of the Government.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Federal Jury in Austin Convicts Houston Man for Multiple Armed Robberies and Firearms ViolationsRead the Press Release
In Austin today, a jury convicted 40–year-old Austin and Houston resident Marvin Lewis (aka “Beau Louis”), who represented himself at trial, of federal charges in connection with a series of robberies and attempted robberies in Texas in 2014 and 2015 as well as one robbery in Ohio in 2015. United States Attorney Richard L. Durbin, Jr.; Austin Police Chief Brian Manley; Federal Bureau of Investigation (FBI) Special Agent in Charge Christopher Combs, San Antonio Division; Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge William Cotter; and, Houston Police Chief Art Acevedo made today’s announcement.
Jurors found Lewis guilty of one count of conspiracy to interfere with Commerce by threats or violence; seven (7) substantive counts of interference with Commerce by threats or violence; twelve (12) counts of money laundering; four (4) counts of possession of a firearm in furtherance of a crime of violence; and, one count of being a felon in possession of a firearm. Jurors acquitted Lewis of two money laundering charges.
Evidence presented during trial revealed that over a two-year period beginning in November 18, 2014, Lewis was responsible for 13 robberies/attempted robberies and one theft including:
* 11.18.14 (theft) – Costco in Katy, TX – diamond ring valued at approximately $24,600;
* 11.28.14 – Jared the Galleria of Jewelry in Austin – 19 diamonds valued at approximately $176,600;
* 11.28.14 – C. Kirk Root Designs in Austin – 40 rings valued at approximately $9,700;
* 12.1.14 – Marc Robinson Jewelers in Austin – 6 Rolex watches valued at approximately $83,000;
* 1.7.15 – Exotic Diamonds in Houston – 25 pieces of jewelry valued at approximately $346,890;
* 1.7.15 – Deutsch and Deutsch Jewelers in Houston – attempted robbery;
* 1.22.15 – Wright Pawn & Jewelry Co. in Houston – 18 watches & 13 rings valued at approx. $219,280;
* 6.25.15 – Jared the Galleria of Jewelry in Strongsville, OH – 48 diamonds valued at approx. $548,000;
* 11.5.15 – Tiffany and Co. in Austin – attempted robbery;
* 11.5.15 – Ben Bridge Jewelers in Austin – attempted robbery;
* 11.5.15 – Jared the Galleria of Jewelry in Austin – 26 diamonds & 14 rings valued at approx. $196,950;
* 11.5.15 – Costco in Katy, TX – 10 diamond jewelry items valued at approximately $20,800;
* 11.5.15 – Jared the Galleria of Jewelry in Houston – attempted robbery; and,
* 11.6.15 – Ben Bridge Jewelers in Austin – attempted robbery.
Jurors also found, based upon the evidence presented, that Lewis structured cash deposits under $10,000 in his bank accounts in order to avoid currency transaction reporting requirements; and, on two occasions, Lewis engaged in financial transactions to conceal the nature of the illegal proceeds by purchasing a 2010 Porsche Panamera and by gambling at a casino in Louisiana.
Testimony also revealed that authorities in Austin arrested the man Lewis hired to commit the Texas robberies, 38-year-old Brandon Grubbs of Houston, following the attempted robbery of Ben Bridge Jewelers on November 6, 2015. At the time of his arrest, Grubbs was in possession of a pistol that testimony revealed was given to him by Lewis.
On February 8, 2017, Grubbs pleaded guilty to one count of conspiracy to interfere with Commerce by threats or violence and one count of possession of a firearm in furtherance of a crime of violence. Grubbs, who remains in custody, faces up to life in federal prison. He is scheduled to be sentenced at 9:00am on September 12, 2017, before United States District Judge Lee Yeakel in Austin.
Lewis, who remains in federal custody, faces up to life in federal prison. Sentencing is scheduled for 9:00am on September 13, 2017, before Judge Yeakel.
The Austin Police Department, FBI, IRS-CI, and the Houston Police Department investigated this case with assistance from the Travis County Sheriff’s Office, Travis County District Attorney’s Office, Strongsville (Ohio) Police Department and the United States Marshals Service. Assistant United States Attorneys Michael Galdo, Matt Harding and Daniel Castillo are prosecuting this case on behalf of the Government.
Undocumented Alien Sentenced to 18 Months in Federal Prison for Assaulting a Federal Deportation OfficerRead the Press Release
In Austin today, a federal judge sentenced 23-year-old Mexican National Hugo Baltazar-Ramirez to 18 months in federal prison for assault on a federal deportation officer in Austin in February announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division.
On March 29, 2017, Baltazar-Ramirez pleaded guilty to the charge. By pleading guilty, Baltazar-Ramirez admitted that on February 10, 2017, he forcibly assaulted a federal officer and employee of the United States who was engaged in the performance of his official duties. As a result of the intentional assault by the defendant, the federal deportation officer suffered bodily injury.
Baltazar-Ramirez has remained in federal custody since his arrest on February 10, 2017.
The Federal Bureau of Investigation conducted this investigation.
Office Manager/Medical Biller in Devine, TX, Sentenced to 17 Years Imprisonment for $3.5 Million Health Care Fraud SchemeRead the Press Release
In Del Rio late yesterday afternoon, a federal judge sentenced 46-year-old DTS Medical Supply Company (DTS) Office Manager/Medical Biller Kathleen Kelly-Tuorila to 17 years in federal prison for her role in an estimated $3.5 million Health Care Fraud scheme announced United States Attorney Richard L. Durbin, Jr., FBI Special Agent in Charge Christopher Combs, San Antonio Division, and Texas Attorney General Ken Paxton.
In addition to the prison term handed down, United States District Judge Alia Moses ordered Kelly-Tuorila to pay $3,269,300.11 in restitution and be placed on supervised release for a period of three years after completing his prison term.
“The prison terms handed down in this case against three defendants total more than 51 years. These sentences reflect the seriousness of the defendants’ actions and our commitment to hold accountable anyone who would rob, steal, or illegally take without just cause Medicaid and Medicare funds,” stated United States Attorney Richard L. Durbin, Jr.
On June 28, 2016, a federal jury convicted Kelly-Tuorila and DTS Medical Supply owner, 55-year-old Daniel Thomason Smith, of one count of conspiracy to commit Health Care Fraud, one count of aiding and abetting Health Care Fraud, eleven counts of aiding and abetting aggravated identity theft and eight counts of aiding and abetting false statements related to a Health Care matter.
Both Medicare and Medicaid provide qualified beneficiaries with financial remuneration for the purchase of prescribed and necessary medical equipment. Such medical equipment would include powered wheelchairs, powered scooters and accessories related to those two devices. Medicare and Medicaid set a rate of compensation for each of these devices and the rate of compensation differed between devices and was to be based on the type of device that was prescribed for the beneficiary and delivered to the beneficiary.
Evidence presented during trial revealed that between May 2006 and January 2010, the defendants conspired to submit numerous false and fraudulent benefit claims to Medicaid and Medicare seeking compensation for powered wheelchairs. Smith employed Robin Renee Haigler, a third defendant in this case, on a commission basis to recruit customers primarily in the Waco area. Kelly-Tuorila used the collected customer information from Haigler to generate and submit fraudulent claims for reimbursement to Medicaid and Medicare for powered wheelchairs. According to court testimony regarding the aggravated identity counts, names of physicians were used to support claims for reimbursement when the named physician never prescribed a powered wheelchair for the customer and, in some instances, did not even know the customer and had never had them as a patient. Evidence also revealed that even though DTS billed for powered wheelchairs, they delivered less-expensive powered scooters to customers, which resulted in a larger payment from Medicaid/Medicare and a larger percentage of profit for DTS and Smith.
“Those who commit Health Care Fraud often harm the most vulnerable in our society by misappropriating limited healthcare dollars intended for the care of the elderly, children and disabled,” said Special Agent in Charge Christopher Combs. “This case demonstrates the FBI's commitment to work with our partners and the public to stop fraud and ensure that limited healthcare funding is used to help those who need it, and not line the pockets of criminals.”
Defendants Smith and Kelly-Tuorila have remained in federal custody since the jury verdict in June 2016. On February 23, 2017, Smith was sentenced to 324 months in federal prison. Haigler, age 60 of Waco, TX, pleaded guilty to the conspiracy charge on August 17, 2015. She was sentenced on November 7, 2016, to 87 months of federal imprisonment. Judge Moses ordered all three to pay—joint and severally—a total of $3,269,300.11 restitution in this case.
“Prosecution of these crimes helps deter fraud and holds health care providers accountable when they steal from the American taxpayers,” Attorney General Paxton said. “I commend the hard work of all involved on this case. My office will continue to go after criminals who attempt to steal from programs that help vulnerable Texans.”
Agents with the Federal Bureau of Investigation together with investigators from the Texas Attorney General’s Medicaid Fraud Control Unit conducted this investigation. Assistant United States Attorney Greg Surovic and Special Assistant United States Attorney Rex Beasley prosecuted this case on behalf of the Government.
Midland Man Sentenced to Federal Prison for Assaulting Prison Guard, Escape and Being a Convicted Felon in Possession of a FirearmRead the Press Release
In Midland today, 38-year-old Iry James Williams of Midland was sentenced to a total of 260 months in federal prison for assaulting an Ector County Correctional Center guard, escape from a half-way house, and being a convicted felon in possession of a firearm announced United States Attorney Richard L. Durbin, Jr., U.S. Marshal David Sligh and Midland Police Chief Price Robinson.
United States District Judge Robert Junell sentenced Williams to consecutive terms of 100 months incarceration for assaulting a public servant; 100 months incarceration for escape; and, 60 months incarceration for felon in possession of a firearm. Judge Junell also ordered that Williams be placed on supervised release for a period of three years after completing his 260-month federal prison term.
According to court records, on February 28, 2016, Williams signed himself out on a social pass from a residential re-entry center in Midland where he was serving the remainder of a 90-month federal prison term for felon in possession of a firearm. Williams did not return to the center as required. According to the Midland Police Department, Williams was the prime suspect in Midland convenience store robbery that evening. Authorities recovered Williams’ wallet and a .380 pistol inside his vehicle outside the convenience store.
On March 6, 2016. MPD officers and deputy U.S. Marshals arrested Williams. He has remained in custody since.
On July 11, 2016, a federal jury convicted him of felon in possession of the .380 pistol. That same day, Williams pleaded guilty to the escape charge. On July 27, 2016, while incarcerated awaiting sentencing on the escape and firearm charges, Williams assaulted an Ector County Corrections Center guard causing bodily injury. Williams pleaded guilty to the assault charge on March 15, 2017.
The U.S. Marshals Service and the Midland Police Department conducted this investigation. Assistant United States Attorney Brandi Young prosecuted this case on behalf of the Government.
Former Chief Financial Officer of Arthrocare Corp. Pleads Guilty to Multimillion Dollar Securities Fraud SchemeRead the Press Release
A Texas man and former chief financial officer (CFO), pleaded guilty today to a multimillion dollar securitries fraud scheme.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney Richard L. Durbin, Jr. of the Western District of Texas, and Special Agent in Charge Christopher Combs of the FBI’s San Antonio Division made the announcement.
Michael Gluk, 59, of Austin, Texas, pleaded guilty to one count of conspiracy to commit securities and wire fraud before U.S. Magistrate Judge Mark Lane of the Western District of Texas. A sentencing date has yet to be scheduled.
As part of his guilty plea, Gluk admitted that he conspired with others to falsely inflate ArthroCare’s sales and revenue through a series of end-of-quarter transactions involving ArthroCare’s distributors. He further admitted that he and other co-conspirators caused ArthroCare to file a Form 10-K for 2007 and Form 10-Q for the first quarter of 2008 with the U.S. Securities and Exchange Commission (SEC) that materially misrepresented ArthroCare’s quarterly and annual sales, revenues, expenses and earnings. As part of the plea, Gluk further admitted that he provided false testimony in proceedings before the SEC and in federal district court.
Gluk further admitted that he and others determined the type and amount of product to be shipped to distributors – notably ArthroCare’s largest distributor, DiscoCare Inc. – based on ArthroCare’s need to meet sales forecasts, rather than the distributors’ actual orders. Gluk and others then caused ArthroCare to “park” tens of millions of dollars worth of ArthroCare’s medical devices at its distributors at the end of each relevant quarter, he admitted. ArthroCare would then report these shipments as sales in its quarterly and annual filings at the time of the shipment, enabling the company to meet or exceed internal and external earnings forecasts, Gluk admitted.
In addition, Gluk admitted that DiscoCare agreed to accept shipment of approximately $37 million of product in exchange for substantial, upfront cash commissions, extended payment terms and the ability to return product, as well as other special conditions, allowing ArthroCare to falsely inflate its revenue by tens of millions of dollars. To conceal the fact that DiscoCare owed ArthroCare a substantial amount of money on the unused inventory, Gluk and others caused ArthroCare to acquire DiscoCare on Dec. 31, 2007, Gluk admitted.
In connection with the plea, Gluk acknowleged that between December 2005 and December 2008, ArthroCare’s shareholders held more than 25 million shares of ArthroCare stock. On July 21, 2008, after ArthroCare announced publicly that it would be restating its previously reported financial results from the third quarter of 2006 through the first quarter of 2008 to reflect the results of an internal investigation, the price of ArthroCare shares dropped from $40.03 to $23.21 per share. On Dec. 19, 2008, after ArthroCare announced publicly that it had identified accounting errors and possible irregularities in its revenue recognition practices going back to 2005, the price of ArthroCare shares dropped further, from $16.23 to $5.92 per share.
Gluk was charged along with co-defendant Michael Baker, ArthroCare’s former CEO, in an indictment unsealed on July 17, 2013. Baker is scheduled for trial on August 7, before U.S. District Judge Sam Sparks in the Western District of Texas.
An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the FBI’s San Antonio Field Office. The case is being prosecuted by Securities and Financial Fraud Unit Chief Benjamin D. Singer, Assistant Chief Henry P. Van Dyck, and Trial Attorney Caitlin Cottingham of the Criminal Division’s Fraud Section. The Department recognizes the substantial assistance of the SEC.
Federal Jury Convicts San Antonio Man for Scheme to Defraud the Veterans Affairs Disability Compensation ProgramRead the Press Release
Mack Cole, Jr., age 54, of San Antonio, faces federal prison time after a jury this afternoon found him guilty of scheming to defraud the Department of Veterans Affairs Disability Compensation Program announced United States Attorney Richard L. Durbin, Jr.
In San Antonio this afternoon, a federal jury convicted Cole on four counts of health care fraud and two counts of making false statements in a matter involving a health care benefit program.
Evidence presented during trial revealed that Cole, who was deployed with the Kansas Army National Guard to Kosovo in 2004, injured his lower back in a state-side training accident prior to the deployment.
In 2006, Cole was granted military retirement and was later deemed eligible for monthly benefits as a retired disabled veteran. The jury found that Cole misrepresented the severity of his service-connected injuries in order to collect a higher level of benefits, adaptations to his residence, and extensive durable medical equipment. Special Agents of the Department of Veterans Affairs Office of Inspector General (VA OIG) conducted video surveillance of Cole, who represented to his VA physicians that he was not able to walk. Over the course of several months, Special Agents of the VA OIG recorded video of Cole mowing his front lawn, walking around his driveway and lawn without assistance, and otherwise demonstrating that he had the ability to walk.
Cole remains on bond pending sentencing scheduled for September 21, 2017, before Chief United States District Judge Orlando L. Garcia. Cole faces up to ten years imprisonment on each of the health care fraud convictions, and up to five years on each of the false statement convictions.
Special Agents with the VA OIG investigated this case. Assistant United States Attorney Bud Paulissen is prosecuting this case on behalf of the Government.
Former Central Texas Dentention Facility - GEO Prison Guard Sentenced to Prison for Sexual Abuse of a WardRead the Press Release
In San Antonio, 35-year-old former Central Texas Detention Facility—G.E.O. prison guard Barbara Jean Goodwin was sentenced to federal prison after admitting to having sexual relations with an inmate, announced United States Attorney Richard L. Durbin, Jr.; United States Marshal David Sligh; and, Christopher Combs, FBI Special Agent in Charge, San Antonio Division.
Appearing before Senior United States District Judge David A. Ezra this morning, Goodwin was sentenced to 5 months imprisonment to be followed by 5 months home confinement. Goodwin also was ordered to serve a 2 year supervised release term and register as a sex offender.
On March 14, 2017, Goodwin pleaded guilty to one count of sexual abuse of a ward. By pleading guilty, Goodwin admitted that from February 2016 to August 2016, she engaged in sexual acts with a federal prisoner who at the time was under her custodial, supervisory or disciplinary authority.
Goodwin was ordered to self-surrender in July to start her prison term.
This investigation was conducted by the U.S. Marshals Service together with the Federal Bureau of Investigation. Assistant United States Attorneys Sarah Wannarka and Christina Playton are prosecuting this case on behalf of the Government.
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Former Reeves County Judge Jimmy Galindo Pleads GuiltyRead the Press Release
Former Reeves County Judge Jimmy Galindo pleaded guilty to federal bribery and income tax related charges announced United States Attorney Richard L. Durbin, Jr.; Federal Bureau of Investigation (FBI) Special Agent in Charge Christopher Combs, San Antonio Division; and, Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge William Cotter, San Antonio Division.
Galindo, age 53, of Selma, TX, appeared today in front of United States Magistrate Judge John W. Primomo to enter his plea of guilty to a criminal information charging one count of conspiracy to commit bribery and one count of failure to file income tax returns.
Galindo served as County Judge for Reeves County from January 1995 through December 2006. Galindo, on behalf of Reeves County, negotiated a contract with a company owned by Vernon C. Farthing, III, of Lubbock, TX, to provide medical services for inmates located in the Reeves County Correctional Center. Galindo signed the contract on September 13, 2006. The Information alleges that Galindo conspired with Farthing and District 19 Texas State Senator Carlos Uresti to ensure that Farthing’s company was awarded that contract.
To secure the contract, the Information states that Farthing agreed to hire Uresti as a “consultant” and pay him approximately $10,000 a month. Uresti, in turn, agreed to pay Galindo one-half of the money he received from Farthing’s company. From January 2007 until September 30, 2016, Uresti paid Galindo approximately half of the monies Uresti received each month from Farthing. The Information also alleges that Galindo failed to file individual income tax returns for the years 2004 to the present.
Upon conviction, Galindo faces up to five years in federal prison on the bribery charge and up to one year in federal prison on the tax charge. Galindo’s sentencing date is set for August 17, 2017
The FBI’s Pubic 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 United States Attorneys Joseph E. Blackwell, William R. Harris and Mark Roomberg are prosecuting this case on behalf of the Government.
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Federal and State Authorities in Las Cruces Arrest Members and Associates of the “Cruces Boys” on Drug Trafficking ChargesRead the Press Release
Federal and state authorities arrested six members and associates of the “Cruces Boys” gang this morning on federal drug trafficking charges and seized 25 firearms announced United States Attorney Richard L. Durbin, Jr.; Special Agent in Charge Terry Wade, Federal Bureau of Investigation, Albuquerque Division; Special Agent in Charge Will Glaspy, U.S. Drug Enforcement Administration, El Paso Division; and, Las Cruces Police Chief Jaime Montoya.
Arrested today include: 29-year-old Joshua Randall Garcia (aka ”Flu,” “Flu Diggs”); 35-year-old Rahiem Harris; 23-year-old Estevan Carreon; 29-year-old Olajuwan Calhoun; 29-year-old Nate Nordorf; and, 21-year-old Jalen Bishop. Authorities arrested Carreon in Farmington, NM, and the others in Las Cruces, NM. All of the defendants remain in custody pending initial appearances expected to occur in federal court tomorrow.
Federal criminal complaints—unsealed today—charge the defendants with conspiracy to possess with intent to distribute cocaine. According to court records, the defendants, led by Joshua Garcia, allegedly distributed cocaine and “crack” cocaine throughout the Las Cruces area from July 2016 until last month.
Garcia, whose charge involves more than 500 grams of cocaine, faces between five and 40 years in federal prison upon conviction. The other defendants, each charged for less than 500 grams of cocaine, face up to 20 years in federal prison upon conviction.
“An operation this large and complex required the coordination of many agencies. I am proud of how well this team of federal, state and local law enforcement professionals worked together to make our community safer,” stated Terry Wade, Special Agent in Charge of the Albuquerque Division of the FBI.
“Our communities deserve to exist without fear and intimidation inflicted by drug gangs,” said Will R. Glaspy, Special Agent in Charge of DEA’s El Paso Division. “Today’s enforcement operation represents our continued commitment to the citizens of Las Cruces for law enforcement at the federal, state and local levels to work together to keep our neighborhoods safe.”
These federal and state charges resulted from an Organized Crime Drug Enforcement Task Force (OCDETF) investigation conducted by the Federal Bureau of Investigation (FBI), Drug Enforcement Administration (DEA), Las Cruces Police Department’s Gang Unit, New Mexico State Police, U.S. Border Patrol, U.S. Marshals Service (USMS), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The Metro Narcotics Unit, Doña Ana County Sheriff’s Office, Homeland Security Investigations (HSI), U.S. Customs and Border Protection (CBP) Air and Marine Unit, and the New Mexico Army National Guard assisted in this investigation.
The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering operations, and those primarily responsible for the nation’s illegal drug supply.
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.
Union Treatment Center to Pay $3 Million and Be Permanently Excluded from Federal Health Care Programs under False Claims Act SettlementRead the Press Release
Union Treatment Center (“UTC”), a medical and physical therapy provider with clinics in Austin, Killeen, San Antonio, and Corpus Christi, will pay $3 million to settle civil health care fraud allegations, announced U.S. Attorney Richard L. Durbin, Jr. Under the settlement, UTC will also waive claims for payment exceeding $1.6 million and be permanently excluded from participating in federal health care programs. The settlement partially resolves a lawsuit under the False Claims Act alleging that UTC perpetrated a scheme to defraud the federal workers’ compensation program (“FECA program”).
“Today’s settlement reflects our commitment to combatting fraud in the federal health care system,” said U.S. Attorney Richard L. Durbin, Jr. “We will use all of the tools at our disposal, including civil litigation under the False Claims Act, to ensure the integrity of federally funded programs.”
The U.S. Department of Labor, Office of Workers’ Compensation Programs (“OWCP”) administers the FECA program, which covers roughly 3 million federal civilian and postal employees for job-related injuries. Benefits include payment of an injured worker’s medical and rehabilitation expenses. OWCP uses federal funds to reimburse health care providers that treat covered workers.
“UTC and its executives submitted false claims to the Office of Workers’ Compensation Programs under the guise that they were treating injured American workers pursuant to the Federal Employees’ Compensation Act. The U.S. Department of Labor’s Office of Inspector General will continue to work with our law enforcement partners to vigorously investigate medical providers who attempt to fraudulently obtain money from Department of Labor Programs intended to treat injured workers,” said Steven Grell, Special Agent in Charge, Dallas Regional, U.S. Department of Labor, Office of Inspector General.
“The Office of Workers’ Compensation Programs considers program integrity and fraud detection and prevention a top priority. We thank the law enforcement community for their investigative efforts – we also thank DOJ for their hard work in resolving this case. This settlement sends a strong signal to providers who submit false health care claims to the government that they will be held accountable for their actions.” Gary A. Steinberg – Deputy Director of OWCP, United States Department of Labor.
UTC claimed to specialize in treating workplace injuries. The company marketed itself to patients covered by the FECA program, targeting in particular unionized postal workers in Austin and San Antonio and civilian Army employees in the Corpus Christi area. In its civil complaint, the United States alleged that UTC, Garry Craighead, UTC’s former Chief Executive Officer, and Christine Craighead, its former Chief Operating Officer, orchestrated a scheme to overcharge OWCP for services and supplies allegedly rendered to patients covered by the FECA program. The United States asserted that, between January 1, 2009, and December 31, 2012, UTC fraudulently billed the FECA program for services it did not render; routinely overcharged for medical examinations; falsely inflated the time patients spent in therapy; and, billed for unnecessary services and supplies. The United States also accused UTC of offering, paying, soliciting, and receiving kickbacks in exchange for patient referrals. The government’s allegations may be found in a qui tam lawsuit captioned United States ex rel. Wheeler v. Union Treatment Centers, LLC, et al., no. SA:13-cv-4-XR (W.D. Tex.) The settlement agreement is not an admission of liability by UTC.
“The workers’ compensation program benefits thousands of postal employees who have received legitimate on-the-job injuries. This investigation should send a clear message to all healthcare providers that workers’ compensation fraud is a federal crime that carries serious consequences and will not be tolerated,” said Special Agent in Charge Maximo Eamiguel, U.S. Postal Service Office of Inspector General Southern Area Field Office. “The USPS-OIG, along with our law enforcement partners, will continue to aggressively investigate those who engage in fraudulent activities intended to defraud federal benefit programs and the United States Postal Service.”
“This settlement further demonstrates the resolve of USACIDC”s Major Procurement Fraud Unit and our law enforcement partners to protect and defend the assets of the United States Army,” stated Frank Robey, director, USACIDC Major Procurement Fraud Unit.
The settlement with UTC is part of a larger enforcement initiative. Garry Craighead is currently serving a 14-year term of imprisonment as a result of his guilty plea to kickback and money laundering charges. The Court ordered Craighead to pay OWCP nearly $18 million in restitution for the damage he caused to the FECA program. His criminal case may be found at United States v. Garry Wayne Craighead, no. A:15-cr-348 (W.D. Tex.) Christine Craighead is awaiting trial on conspiracy, wire fraud, kickback, and aggravated identity theft charges. Her trial is set for October 30, 2017. The criminal case is captioned United States v. Christine Ann Craighead, 1:17-cr-88 (W.D. Tex.)
“Along with criminal prosecution, the FBI is committed to pursuing administrative and civil remedies with the United States Attorney's Office, and our partner investigative agencies, to prevent, deter, and recover government losses sustained by fraud waste and abuse,” stated FBI Special Agent in Charge Christopher Combs, San Antonio Division.
The United States Postal Service Office of the Inspector General, United States Army Criminal Investigation Command’s Major Procurement Fraud Unit, Federal Bureau of Investigation, and United States Department of Labor Office of the Inspector General conducted the investigation for the United States. Assistant United States Attorney John J. LoCurto and Auditor Jamie Cole, CPA handled the investigation for the United States Attorney’s Office.
Former A.B.I.A. Baggage Handler Pleads Guilty to Stealing FirearmsRead the Press Release
A 26-year-old baggage handler at Austin Bergstrom International Airport (ABIA) faces up to twenty years in federal prison after pleading guilty to stealing items from checked baggage, including a .40 caliber Glock semi-automatic pistol, announced United States Attorney Richard L. Durbin, Jr., Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division, and Austin Police Chief Brian Manley.
Appearing before United States Magistrate Judge Mark Lane this afternoon, Ja’Quan Johnson pleaded guilty to one count of theft from an interstate shipment and one count of possession of a stolen firearm. By pleading guilty, Johnson admitted that between November 29, 2016, and February 2, 2017, he stole seven handguns from inside passenger bags at ABIA.
Johnson remains on bond pending sentencing. Sentencing has yet to be scheduled.
The Federal Bureau of Investigation, Transportation Security Administration and the Austin Police Department’s Aviation Division conducted this investigation. Assistant United States Attorney Gregg N. Sofer is prosecuting this case for the Government.
El Paso Drug Trafficker Sentenced to 293 Months in Federal PrisonRead the Press Release
In El Paso, an El Paso man was sentenced to 293 months in federal prison for conspiring to distribute thousands of kilograms of marijuana announced United States Attorney Richard L. Durbin, Jr. and Drug Enforcement Administration Special Agent in Charge Will R. Glaspy, El Paso Division.
In addition to the prison term, United States District Judge Philip R. Martinez ordered 56-year-old David Lopez to pay a $50,000 fine. Judge Martinez also ordered that Lopez forfeit to the Government proceeds and property derived from his drug transportation business including $2.4 million in U.S. Currency, various tractor trailers, personal vehicles, and his residence.
On January 26, 2017, a jury convicted Lopez of one count of conspiracy to possess over 1,000 kilograms of marijuana and one count of possession of over 100 kilograms of marijuana. Evidence presented at trial revealed that David Lopez had been transporting marijuana from El Paso, Texas to cities in the United States from August 2001 until August 2015. Lopez utilized commercial tractor trailers driven by himself and other hired drivers. In total, the DEA was able to connect significant marijuana seizures in Sierra Blanca (TX), Abilene (TX), Alamogordo (NM), and Pratt County (KS), totaling over 3,300 kilograms of marijuana, to Lopez. Additional evidence was presented that Lopez attempted to hire a confidential source and an undercover officer to transport marijuana for him.
Furthermore, in 2010, Lopez was stopped in Clark County, KS. After a K-9 alerted to his vehicle, officers found $130,000 in his suitcase. Lopez denied any knowledge of the cash, though the cash was packaged similar to the $53,000 cash found in his safe after a search of his residence in 2015.
Lopez has remained in federal custody since his arrest on June 3, 2016.
“With this conviction, DEA and our law enforcement partners are working together to have a positive impact at the local level. We are sending a strong and unified message that drug dealing, at all levels, will not be tolerated, and, in turn, we are making our communities safer,” said Will R. Glaspy, DEA Special Agent in Charge.
This case resulted from an investigation conducted by DEA El Paso, DEA Kansas City, El Paso County Sheriff’s Office, El Paso Police Department, Anthony Police Department, United States Border Patrol, Kansas Highway Patrol, Clark County Kansas Sheriff’s Office, Kansas Bureau of Investigation, and Homeland Security Investigations with the assistance of The Document and Media Exploitation (DOMEX) El Paso Branch.
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37 San Antonio-Based Texas Mexican Mafia Members and Associates Indicted on Federal Drug Trafficking, Extortion and Firearms ChargesRead the Press Release
Today, federal, state and local authorities arrested 26 individuals, including “TMM General” Raul Ramos, and are looking for four others in connection with a heroin/cocaine trafficking operation in the San Antonio area announced United States Attorney Richard L. Durbin, Jr.; Federal Bureau of Investigation (FBI) Special Agent in Charge Christopher Combs, San Antonio Division; Drug Enforcement Administration (DEA) Special Agent in Charge Joseph M. Arabit, Houston Division; and, District Attorney Daniel Kindred, 38th Judicial District Attorney’s Office.
A federal grand jury this week returned an indictment against a total of 37 defendants (listed below): 26 arrested today, eight who were already in custody, and, three who remain fugitives. Charges contained in a federal grand jury indictment unsealed this afternoon in San Antonio are: conspiracy to interfere with Commerce by threats or violence (Count 1); conspiracy to distribute controlled substances (Count 2); possession with intent to distribute a controlled substance (Count 3); use, carrying, or discharging a firearm in relation to a drug trafficking crime (Count 4).
The indictment alleges that the defendants are responsible for distributing heroin and methamphetamine since January 2015 as well as collecting the “dime,” a ten percent tax imposed by the TMM on non-members who distribute narcotics. The indictment states that failure to pay the tax could result in serious bodily injury, robbery or death.
The defendants face up to 20 years in federal prison upon conviction of the extortion conspiracy charge. The defendants face between five and 40 years in federal prison upon conviction of the drug conspiracy charge or drug possession charge. The defendants face a mandatory ten years in federal prison consecutive to any other prison time assessed upon conviction of the firearms charge. Those defendants arrested today remain in federal custody awaiting detention hearings in federal court next week.
This indictment resulted from an Organized Crime Drug Enforcement Task Force (OCDETF) investigation conducted by the FBI and the DEA together with Homeland Security Investigations (HSI), the San Antonio Police Department, Texas Department of Public Safety, Bexar County Sheriff’s Office, New Braunfels Police Department, Medina County Sheriff’s Office, Hondo Police Department, and the District Attorney’s Office for the 38th Judicial District. Since October 2016, the 38th Judicial District DA's Office in Hondo, TX, has obtained over 50 state indictments of TMM members and their associates in the Hondo area related to this investigation.
The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering operations, and those primarily responsible for the nation’s illegal drug supply.
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.
U.S. v. Ramos, et al. defendants
SA17cr391
** Already in custody prior to today
Name, Age, Residence, Charges
Raul Ramos (aka Alto, aka Naranjo, aka GQ), age 51 of San Antonio, Counts 1,2
Victor Garcia (aka Café, aka Pelon, aka BF), age 48 of San Antonio, Counts 1,2
Angel Cantu Garcia (aka Mad, aka Che), age 53 of San Antonio, Counts 1,2Robert M. Cantu (aka Rock, aka Aguila), age 52 of San Antonio, Counts 1,2
Mariano Valdez III (aka Huesos, aka Rage), age 48 of San Antonio, Counts 1,2
**Fernando Gonzales (aka Nando, aka Sunny), age 37 of San Antonio, Counts 1,2
**Richard Gamez (aka Richio, aka Mack), age 40 of San Antonio, Counts 1,2
Arthur Gallegos (aka Teflon, aka Llano), age 41, of San Antonio, Count 1
Daniel Garza (aka Yogi), age 46 of San Antonio, Counts 1,2
Ricky Escobedo (aka Striker, aka Richio, aka Guero), age 41 of San Antonio, Counts 1,2
Jimmy Lee Zuniga (aka Goon),age 30 of San Antonio, Count 1
**Miguel Hernandez (aka Mikio), age 35 of San Antonio, Count 2
Ramiro R. Carrizales (aka Rudy C), age 45 of San Antonio, Counts 1,2
Abel Joseph Guerrero (aka Sandman, aka Plex), age 29 of San Antonio, Counts 1,2
Joe Perez III (aka JJ), age 31 of San Antonio, Counts 1,2
Julian Rosas Garza (aka Juju), age 26 of San Antonio, Counts 1,2
Juan Jose Gonzales (aka Wedo), age 38 of San Antonio, Counts 1,2,3,4
Roman Gabriel Gonzales (aka Roman), age 44 of San Antonio, Counts 1,2
**Joe Angel Arredondo (aka Porkchop), age 36 of San Antonio. Counts 2,3,4
**Johnny Ray Morales (aka Chone), age 29 of San Antonio, Counts 1,2,3,4
**Mario Vega (aka Chore), age 39 of San Antonio, Count 1
Alfred Garansuay (aka Alfred), age 45 of San Antonio, Counts 1,2
Fran Marie Gonzales (aka China), age 38 of San Antonio, Counts 1,2
Roberto Hernandez (aka Bobby), age 72 of San Antonio, Counts 1,2
Albert Guerra Mata (aka Pajaro), age 45 of San Antonio, Counts 1,2
Jimmy Perez (aka Turtle, aka Reaper), age 40 of San Antonio, Counts 1,2
Robert Rodriguez (aka Chino), age 43 of San Antonio, Count 1
Johnny Ramon Fonseca (aka Mad Cow, aka MC), age 44 of San Antonio, Count 1
Pedro Torrez (aka Infamous), age 34 of Floresville, TX, Counts 1,2
Jesus Rodriguez (aka Texas), age 29 of San Antonio, Counts 1,2
Frederick Rocha (aka Lil Mac), age 38 of San Antonio, Count 1
Oscar Martinez (aka Pelon), age 70 of Laredo, TX, Count 2
**Jose Luis Cortez (aka Listo, aka T-Bone), age 40 of San Antonio, Count 1
**Marc Thomas Reyes (aka Panda), age 29 of San Antonio, Counts 1,2
Federal Bribery and Tax Charges Filed Against Former Reeves County Judge Jimmy GalindoRead the Press Release
Former Reeves County Judge Jimmy Galindo faces federal bribery and income tax related charges announced United States Attorney Richard L. Durbin, Jr.; Federal Bureau of Investigation (FBI) Special Agent in Charge Christopher Combs, San Antonio Division; and, Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge William Cotter, San Antonio Division.
Today, the United States Attorney’s Office for the Western District of Texas filed an Information charging Galindo, age 53, of Selma, TX, with one count of conspiracy to commit bribery and one count of failure to file income tax returns.
Galindo served as County Judge for Reeves County from January 1995 through December 2006. The Information states that as an elected official, Galindo had a fiduciary duty to the people of Reeves County. Galindo, on behalf of Reeves County, negotiated a contract with a company owned by Vernon C. Farthing, III, of Lubbock, TX, to provide medical services for inmates located in the Reeves County Correctional Center. Galindo signed the contract on September 13, 2006. The Information alleges that Galindo conspired with Farthing and District 19 Texas State Senator Carlos Uresti to ensure that Farthing’s company was awarded that contract.
According to the Information, Galindo provided Farthing’s company with information not known to the general public about pricing which under the contract was more favorable to Farthing’s company than to Reeves County. To secure the contract, the Information states that Farthing agreed to hire Uresti as a consultant and pay him $120,000 year. Uresti, in turn, agreed to pay Galindo one-half the money he received from Farthing’s company. From September 2006 until December 2011, Farthing’s company paid Uresti approximately $600,000. Of that amount, Galindo received approximately $285,000. From January 2012 until December 2015, Farthing’s company, and its successor companies, paid Uresti approximately $252,500. Of that, Uresti paid Galindo approximately $116,740. The Information also alleges that Galindo failed to file individual income tax returns for the years 2004 to the present.
Upon conviction, Galindo faces up to five years in federal prison on the bribery charge and up to one year in federal prison on the tax charge. Galindo’s initial appearance date has yet to be scheduled.
A federal grand jury indictment, returned Tuesday in San Antonio, charges District 19 Texas State Senator Carlos I. Uresti and 44–year-old Vernon C. Farthing, III, of Lubbock, TX, with one count of conspiracy to commit bribery and one count of conspiracy to commit money laundering.
U.S. Magistrate Judge Henry Bemporad released Farthing on bond following his initial appearance this morning in San Antonio. Judge Bemporad released Uresti on bond following his initial appearance yesterday.
The FBI’s Pubic 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 United States Attorneys Joseph E. Blackwell, William R. Harris and Mark Roomberg are prosecuting this case on behalf of the Government.
It is important to note that an information and indictment are merely charges and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
San Antonio Man Sentenced to 30 Years in Federal Prison for Production of Child PornRead the Press Release
In San Antonio this morning, 33-year-old Kevin Clay Montgomery was sentenced to the statutory maximum of 30 years in federal prison followed by ten years of supervised release for production of child pornography announced United States Attorney Richard Durbin, Jr. and FBI Special Agent in Charge Christopher Combs, San Antonio.
On October 15, 2016, Montgomery pleaded guilty to the charge. By pleading guilty, Montgomery admitted that in September 2014, he used his cell phone to produce child pornography that depicted the abuse and exploitation of an approximate 2-year-old female toddler. After receiving information concerning the transmission and storage of potential child pornography, agents from the FBI’s San Antonio Division obtained a search warrant for the defendant’s residence. On January 27, 2015, agents executed the warrant and seized two cellular telephones belonging to the defendant. A subsequent forensics evaluation of the seized phones revealed the presence of approximately 369 images of child pornography produced using those phones from October 2014 to December 2014.
Montgomery has remained in federal custody since his arrest on January 27, 2015.
The Federal Bureau of Investigation conducted this investigation. Assistant United States Attorney Tracy Thompson prosecuted this case on behalf of the Government.
Federal Grand Jury Indicts Texas State Senator Carlos UrestiRead the Press Release
In San Antonio today, a federal grand jury returned two separate indictments against District 19 Texas State Senator Carlos I. Uresti announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation (FBI) Special Agent in Charge Christopher Combs, San Antonio Division. Three other individuals were also charged by the grand jury.
FOUR WINDS INDICTMENT
This indictment charges Uresti, age 53, of San Antonio, Four Winds Chief Executive Officer Stanley P. Bates, age 45, of San Antonio, and Four Winds consultant Gary L. Cain, age 60, of San Antonio, with one count of conspiracy to commit wire fraud and one count of conspiracy to commit money laundering. The indictment also charges Uresti with 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. The indictment also charges Bates with one count of wire fraud; two counts of securities fraud; and, three counts of engaging in monetary transactions with property derived from specified unlawful activity. The indictment also charges Cain with seven counts of engaging in monetary transactions with property derived from specified unlawful activity.
The indictment alleges that the defendants developed an investment Ponzi scheme to market hydraulic fracturing (fracking) sand for oil production. It further alleges that the defendants made false statements and representations to solicit investors in Four Winds. The defendants allegedly used funds from more recent investors to pay earlier investors and for personal expenses.
For each fraud related charge, the defendants face up to 20 years in federal prison upon conviction. For each money laundering charge, the defendants face up to ten years in federal prison upon conviction. Uresti faces up to 20 years in federal prison upon conviction of being an unregistered securities broker.
REEVES COUNTY INDICTMENT
This indictment charges Uresti and 44–year-old Vernon C. Farthing, III, of Lubbock, TX, with one count of conspiracy to commit bribery and one count of conspiracy to commit money laundering.
The indictment alleges that from January 2006 to September 2016, the defendants conspired with others to pay and accept bribes in order to secure a Reeves County Correctional Center medical services contract for Farthing’s company. The indictment specifically alleges that Farthing paid Uresti $10,000 a month as a marketing consultant and that half of that sum was then given to a Reeves County official for his support and vote to award the contract to Farthing’s company.
Upon conviction of the charges contained in this indictment, the defendants face up to five years in federal prison for conspiracy to commit bribery and up to 20 years in federal prison for conspiracy to commit money laundering.
It is anticipated that initial appearances for Uresti, Bates and Cain will be tomorrow at 11:00am before United States Magistrate Judge Henry Bemporad in San Antonio. Farthing’s initial appearance is expected to occur at 11:00am on Thursday in front of Judge Bemporad.
The FBI’s Pubic Corruption Task Force is conducting this investigation. The Task Force is comprised of investigators from the FBI, Internal Revenue Service-Criminal Investigation (IRS-CI), Texas Department of Public Safety (DPS) and the Peace Corps-Office of Inspector General. Assistant United States Attorneys Joseph E. Blackwell, William R. Harris and Mark Roomberg are prosecuting this case on behalf of the Government.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.