Western District of Texas

In San Antonio this afternoon, a jury convicted 54-year-old Geoffrey Comstock, owner and operator of the Frio Nevado Corporation (Frio Nevado), for overbilling the City of San Antonio by more than $500,000 for janitorial services at the Alamodome announced United States Attorney John F. Bash and Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden.

The jury convicted Comstock of one count of conspiracy to commit wire fraud and six substantive counts of wire fraud.  Testimony during trial revealed that from 2002 to 2016, Frio Nevado had a contract to provide janitorial services to the City of San Antonio at the Alamodome on a daily basis and for special events.  Between June 2014 and January 2016, Comstock implemented a scheme to submit fraudulent invoices to the City of San Antonio that inflated the number of man hours of janitorial work performed at the Alamodome.  A contract review in 2016 by the City of San Antonio Financial Department revealed that in July 2015, Comstock began preparing, or directed other employees to prepare and submit, timesheets that did not accurately reflect the names of employees, number of employees, or number of man hours expended, to justify the previously submitted false invoices.  Based upon those fraudulent invoices, the City of San Antonio overpaid Frio Nevado by more than $500,000.  The jury acquitted Comstocks’s former billing coordinator, 58-year-old Anna Becerra, of all charges.

“Comstock took advantage of the level of good faith and fair dealing in our financial system for his own personal gain,” said Special Agent in Charge Shane Folden, HSI San Antonio. “This case clearly demonstrated the company was defrauding the city by overbilling hundreds of thousands of dollars in fake hours at the expense of tax payers.”

Comstock faces up to 20 years in federal prison on each charge.  Sentencing has yet to be scheduled.

Homeland Security Investigations (HSI) investigated this case with the cooperation of the City of San Antonio.  Assistant United States Attorneys Gregory Surovic and Bud Paulissen are prosecuting this case on behalf of the Government.

John F. Bash is the United States Attorney for the Western District of Texas.  Chief United States District Judge Orlando Garcia administered the oath of office to Mr. Bash yesterday at the federal courthouse in San Antonio.  A public swearing-in ceremony will be scheduled in the future.

President Donald J. Trump nominated Mr. Bash to be the U.S. Attorney for the Western District of Texas on September 11, 2017.  The United States Senate confirmed his nomination on November 9, 2017.

“I am honored to return to the Department of Justice and serve as the United States Attorney for the Western District.   I look forward to working alongside the talented and dedicated men and women of this office and our partners in law enforcement to protect and defend the Constitution, ensure the safety and security of our community, and pursue the impartial administration of justice,” said U.S. Attorney Bash.

Bash graduated from Harvard University in 2003, and received his law degree from Harvard Law School in 2006.   Prior to his appointment as U.S. Attorney, Bash served as a Special Assistant to the President and as an Associate White House Counsel.  Bash was an Assistant to the U.S. Solicitor General from 2012 to 2017, where he represented the United States before the U.S. Supreme Court.  He was previously an associate in the law firm of Gibson, Dunn and Crutcher, and served as a law clerk to the late U.S. Supreme Court Associate Justice Antonin Scalia and to Circuit Judge Brett M. Kavanaugh on the U.S. Court of Appeals for the District of Columbia Circuit.

As U.S. Attorney, Bash is the chief federal law enforcement officer in the Western District of Texas.  He is responsible for prosecuting violations of federal criminal law and representing the U.S. in all civil litigation in which the United States is a party in the district. 

The Western District of Texas includes 68 counties spanning approximately 93,000 square miles.  The U.S. Attorney’s Office employs more than 250 people.  The headquarters office is in San Antonio; staffed offices are in Austin, El Paso, Midland, Del Rio, Waco, and Alpine.

Richard L. Durbin, Jr., who has served as the U.S. Attorney since December 2014, will serve as the First Assistant United States Attorney.                      

In Midland today, 47-year-old bookkeeper Mary Elisa “Lisa” Salazar pleaded guilty to stealing over $1.5 million from her employer, an oil well leasing company in Midland, announced United States Attorney Richard L. Durbin, Jr.; Internal Revenue Service-Criminal Investigation Acting Special Agent in Charge Troy Caldron; and, Federal Bureau of Investigation Special Agent in Charge Emmerson Buie, Jr., El Paso Division.

Appearing before U.S. Magistrate Judge David Counts, Salazar pleaded guilty to a two-count Information charging her with one count of wire fraud and one count of making and filing a false Income Tax return. 

By pleading guilty, Salazar admitted that from 2011 to 2016, she embezzled funds from the business by writing unauthorized company checks to herself.  She further admitted to concealing her actions by either falsifying bank reconciliation statements or omitting the checks in the internal accounting system.  The estimated loss to the company because of her illegal scheme is $1,588,518.

Salazar also admitted to filing false Income Tax returns for calendar years 2011 to 2016 in which she substantially understated her total income, adjusted gross income and taxable income.  According to court records, Salazar owes the Internal Revenue Service an estimated $540,000 in unpaid taxes due to her underreporting.

Salazar remains on bond pending sentencing.  No sentencing date has been scheduled.  Salazar faces up to 20 years in federal prison for the wire fraud charge and up to three years in federal prison for the tax charge.

The Internal Revenue Service-Criminal Investigation and Federal Bureau of Investigation conducted this investigation. 

In Waco today, a federal judge sentenced a Dripping Springs man to 18 months in federal prison for making threats to kill individuals on Fort Hood in back in February announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation (FBI) Special Agent in Charge Christopher Combs, San Antonio Division.

In addition to the prison term, United States District Judge Robert Pitman ordered that 29-year-old Thomas Anthony Chestnut, Jr., be placed on supervised release for a period of three years after completing his prison term.  Chestnut has remained in federal custody since being arrested by FBI agents on February 24, 2017.

On September 19, 2017, jurors found Chestnut guilty of one count of threatening to assault or murder a uniformed service member and one count of interstate communications with threat to injure.  Testimony during the two-day trial revealed that on February 22, 2017, Chestnut made verbal threats when he called and spoke with a sergeant at the US Army 1st Calvary Division at Fort Hood.  Chestnut threatened to go to Fort Hood, kill the sergeant, take hostages, start a mass killing spree and then kill himself if he was not allowed to speak with someone of rank.  Chestnut then spoke with a major and advised that he was a former soldier wrongly accused of a crime and eventually released from prison in 2016.  Chestnut further advised if he was unable to speak with a U.S. Army III Corps Commander or a Sergeant Major regarding back pay, or did not receive the money he believed was owed to him, that he planned to shoot soldiers on Fort Hood.

The FBI together with the U.S. Army Military Police Investigations at Fort Hood and the Hays County Sheriff’s Office conducted this investigation.   Special Assistant U.S. Attorney/Active Duty U.S. Army Major Benjamin Hogan and Assistant U.S. Attorney Chris Blanton prosecuted this case on behalf of the government.

In El Paso today, a federal judge sentenced 40-year-old Jose Juan Quinones Avila of Ciudad Juarez, Chihuahua, Mexico, to 57 months in federal prison for drug trafficking and money laundering announced United States Attorney Richard L. Durbin, Jr.; Federal Bureau of Investigation Special Agent in Charge Emmerson Buie, Jr., El Paso Division; and, Inspector in Charge Adrian Gonzalez, United States Postal Inspection Service, Houston Division.

On September 26, 2017, Quinones pleaded guilty to conspiracy to possess with the intent to distribute a Controlled Substance, over 500 grams of cocaine, and one count of conspiracy to launder monetary instruments.  Quinones was a target in an ongoing Bank Secrecy Act investigation.  By pleading guilty, Quinones admitted that from March 2006 to April 2017, he was responsible for transporting approximately five kilograms of cocaine in El Paso that was destined for Charlotte, NC, and disbursing approximately $142,156 in illicit proceeds to further ongoing drug trafficking activities in the United States.

The investigation involved agents from the Federal Bureau of Investigation, United States Postal Inspection Service, Homeland Security Investigations, United States Border Patrol, Drug Enforcement Administration, Texas Attorney General’s Office, and the Department of Treasury Financial Crimes Enforcement Network (FinCEN), who safeguards the United States financial system from illicit use, combats money laundering, and promotes national security through the collection, analysis, and dissemination of financial intelligence and strategic use of financial authorities.  Assistant United States Attorney John Johnston prosecuted this case on behalf of the Government.

In Austin today, a federal judge sentenced Brian David Haney, 38-year-old partial owner of Vidor Pharmacy and Kevin Michael Gray, 45-year-old operator of Family Pharmacy, Inc., in the Houston area, each to 28 months in federal prison for bribery and tax violations in connection with a health care fraud scheme announced United States Attorney Richard L. Durbin, Jr. 

In addition to the prison term, United States District Judge Sam Sparks ordered that each defendant pay a $100,000 fine; pay $6,500 for the cost of prosecution; and, be placed on supervised release for a period of three years after completing his prison term.  Judge Sparks also ordered that Haney pay $351,947 restitution to the IRS; Gray, $245,692 restitution to the IRS.  Judge Sparks also ordered that both defendants pay, jointly and severally, $813,560.87 restitution to the U.S. Department of Labor. 

On December 14, 2016, Haney pleaded guilty to a two-count Information charging him with willful offer and payment of illegal remuneration in relation to a federal health care program and one count of making and filing a false Income Tax return.  On April 13, 2016, Gray pleaded guilty to the same charges.

By pleading guilty, the defendants admitted that for over a two-year period ending in January 2014, they paid kickbacks totaling $813,560.87 to Garry Wayne Craighead.  Craighead, a chiropractor, organized and controlled multiple health care related entities, including eight clinics in Texas (Dallas, Fort Worth, Killeen, Austin, San Antonio, Corpus Christi, Weslaco, and Beaumont), that derived substantial revenue from the U.S. Department of Labor’s health care benefit programs.  Haney and Gray paid Craighead cash for patient referrals of federally-insured employees in need of prescription services.

Both defendants also admitted to filing a false Income Tax return in which they substantially understated their total income, adjusted gross income and taxable income. 

On December 4, 2015, Craighead pleaded guilty to one count of solicitation and receipt of illegal remunerations in federal health care programs and one count of engaging in monetary transactions in property derived from specified unlawful activity.  On June 10, 2016, Craighead was sentenced to 14 years in federal prison and ordered to pay over $17 million restitution to the U.S. Department of Labor. 

“Today’s sentencings of Brian Haney and Kevin Gray further shows that IRS Criminal Investigation is working vigorously to stop perpetrators who devise elaborate methods to conceal their fraudulent proceeds from health care fraud,” said Acting Special Agent in Charge Troy Caldron, San Antonio Field Office.  “Money gained through illegal sources, such as healthcare fraud, is part of the untaxed, underground economy.  This untaxed underground economy poses a threat to our voluntary tax compliance system and undermines the overall public confidence in our American system of taxation.”

“To ensure patient referrals of federally-insured employees in need of prescription services, pharmacists Brian Haney and Kevin Gray paid more than $800,000 in illegal kickbacks to Dr. Garry Craighead, who is currently serving a 14-year sentence on related charges. We will continue to work with our law enforcement partners to investigate medical providers who exploit injured American workers and defraud the Office of Workers’ Compensation Programs for their personal gain,” said Special Agent in Charge Steven Grell, U.S. Department of Labor, Office of Inspector General, Dallas Region.

“The sentences issued today should be an example to those healthcare providers engaging in illegal schemes that the government is vigilant and fraud committed against federal benefit programs is a serious offense that will not be tolerated,” said Special Agent in Charge Christopher Cave, U.S. Postal Service Office of Inspector General, Southern Area Field Office. “The USPS-OIG, along with our law enforcement partners, will continue to vigorously investigate these types of cases in order to protect the Office of Workers’ Compensation Programs and United States Postal Service from further fraud and abuse.”  

“We are very pleased with today’s announcement,” said Director Frank Robey, U.S. Army Criminal Investigation Command's Major Procurement Fraud Unit.  “This is a true testament to our continued commitment to work closely and seamlessly with our outstanding fellow law enforcement agencies to help bring those to justice who attempt to defraud the U.S. Government and U.S. Army.”

“The sentences handed down today should send a strong message to healthcare providers, and others who contemplate engaging in illegal kickback schemes, that they will be held accountable for their actions.  The FBI will continue to work with our partners, to aggressively investigate and prosecute criminals who abuse the system for personal enrichment, at the expense of hard working U.S. taxpayers,” stated FBI Special Agent in Charge Christopher Combs, San Antonio Division.

The U.S. Postal Service Office of the Inspector General, U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit, Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation, and the U.S. Department of Labor Office of the Inspector General conducted this investigation.  Assistant U.S. Attorneys James Blankinship and Mark Marshall are prosecuting this case for the government.

In San Antonio today, United States District Judge Xavier Rodriguez sentenced former Texas Mexican Mafia (TMM) Sergeant Jerry Idrogo to 20 years in federal prison followed by five years of supervised release for his role in the murder of Balcones Heights Police Officer Julian Pesina in 2014.

United States Attorney Richard L. Durbin, Jr.; Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division; Texas Department of Public Safety Director Steve McCraw; and, San Antonio Police Chief William McManus made that announcement this afternoon.

On August 11, 2016, Idrogo, age 37, pleaded guilty to a racketeering conspiracy charge that included Pesina’s murder.  Another TMM member, Ruben Reyes, previously pleaded guilty to similar charges that included this murder and four others.  Reyes is currently serving five consecutive life-imprisonment sentences.  Earlier this month, a federal jury convicted two other TMM members, 29-year-old Jesse Santibanez and 36-year-old Alfredo Cardona of one count of murder in aid of racketeering and one count of discharging a firearm during a murder in aid of racketeering. 

Evidence presented during trial revealed that acting upon an order by Reyes, Santibanez and Cardona murdered Pesina on May 4, 2014, in front of his business, the Notorious Ink Tattoo and Piercing Studio, located on Hillcrest Drive. 

Testimony during trial revealed that Pesina had claimed membership in the TMM, was selling narcotics and paying the “dime” (the 10% street tax) to the TMM, when the TMM learned that Pesina was a Balcones Heights Police Officer.  On May 4, 2014, Idrogo contacted Pesina and arranged for pickup of the “dime” outside of Pesina’s tattoo shop.  Just before meeting Pesina, Idrogo dropped off Santibanez and Cardona on the side of the building.  Once Pesina walked up to the car and handed Idrogo the “dime” payment money, Santibanez and Cardona came around the corner and shot and killed Pesina.

All of the defendants remain in federal custody.  Santibanez and Cardona each face a minimum mandatory sentence of life in federal prison.  Sentencing is scheduled for February 8, 2018, before Judge Rodriguez. 

The FBI together with the Texas Department of Public Safety, the San Antonio Police Department and the Bexar County Sheriff’s Office investigated this case. 

In San Antonio today, 67-year-old Opal Jewel Charles, of Cibolo, TX, was sentenced to five years in federal prison for stealing money collected for wounded warriors and their families announced United States Attorney Richard L. Durbin, Jr.; Resident Agent in Charge Ray A. Rayos, U.S. Army Criminal Investigation Command (Army CID), San Antonio Fraud Resident Agency; and, Internal Revenue Service-Criminal Investigation (IRS-CI) Acting Special Agent in Charge Troy Caldron, San Antonio.

In addition to the prison term, United States District Judge Xavier Rodriguez ordered that Charles pay $260,000 restitution and be placed on supervised release for a period of three years after completing her prison term. 

In May, Charles pleaded guilty to one count of wire fraud and one count of structuring.  By pleading guilty, Charles admitted that from 2004 to December 2016, she was assigned to attend to the needs of soldiers and their families at the Warrior Transition Battalion at Brooke Army Medical Center located on Fort Sam Houston in San Antonio. As part of her duties, she solicited funds and other assistance from private organizations and individuals dedicated to assisting wounded warriors.  Charles, admittedly, stole those solicited funds and used them for her own private affairs, including gambling.  Charles further admitted to structuring bank deposits under $10,000 in order to avoid triggering automatic currency transaction reports.

“Today's sentencing illustrates our firm commitment to aggressively investigate public corruption on Joint Base San Antonio and hold those who engage in such acts accountable,” said Resident Special Agent in Charge Ray A. Rayos, U.S. Army CID San Antonio Fraud Resident Agency."

“IRS-Criminal Investigation is diligent in unraveling the fraudulent actions of those, such as Opal Charles, who schemed to defraud those willing to donate to American soldiers in need of assistance,” said IRS-CI Acting Special Agent in Charge Troy Caldron, San Antonio Field Office.  “Today’s sentencing is a reminder that there are detrimental consequences for this type of criminal behavior.”

Agents with the U.S. Army CID Major Procurement Fraud Unit and IRS-CI investigated this case.  Assistant United States Attorney James Blankinship prosecuted this case on behalf of the Government.

In San Antonio, 47–year-old professional photographer Christopher Alexander Reilly, doing business as Chris Reilly Photography, faces between five and 40 years in federal prison after pleading guilty this afternoon to federal child pornography charges announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division.

Appearing before United States Magistrate Judge Elizabeth S. Chestney, Reilly pleaded guilty to one count of transportation of child pornography and one count of receipt of child pornography.  By pleading guilty, Reilly admittedly downloaded child pornography from the Internet onto a computer hard drive in December 2016.  Furthermore, he knowingly transported child pornography on his laptop computer on a trip from Texas to California in January 2017.  According to court records, on January 24, 2017, a data recovery firm reported to the FBI that they discovered videos depicting minors engaged in sexually explicit conduct on a computer hard drive submitted for recovery by the defendant.

The forensic examination of the information contained on the laptop computer as well as the external hard drive revealed numerous video and image files depicting prepubescent children engaged in sexually explicit conduct.  Also contained on the external hard drive were video files of minor children, taken surreptitiously by the defendant, depicting the clothed genital areas of the children, as they stretched, walked and engaged in conversation with Reilly.

Reilly remains in federal custody.  Sentencing is scheduled for 9:00am on February 26, 2018, before Senior United States District Judge David A. Ezra.

Assistant United States Attorney Tracy Thompson is prosecuting this case on behalf of the Government.

United States Attorney Richard L. Durbin, Jr., today announced $3,125,000 in grant funding through the Department of Justice’s Office of Community Oriented Policing Services (COPS Office) COPS Hiring Program (CHP). These funds have been awarded to the San Antonio Police Department and will allow for the hiring of 25 additional full-time law enforcement officers. CHP provides grant funding directly to state, local, and tribal law enforcement agencies to support the hiring of additional law enforcement officers, for three years, to address specific crime problems utilizing community policing strategies.

“Community policing is an effective tool for reducing violent crime in our neighborhoods,” said U.S. Attorney Richard L. Durbin, Jr. “With this grant, an important partner agency of ours will be able to hire and train additional officers to enhance public safety in our community.”

Earlier today, Attorney General Jeff Sessions announced that 179 law enforcement agencies across the nation were awarded $98,495,397 through the COPS Office’s CHP funding program. These awards will allow for the hiring of 802 additional full-time law enforcement officers.

The COPS Office awards grants to hire community policing officers, develop and test innovative policing strategies, and provide training and technical assistance to community members, local government leaders, and all levels of law enforcement. Since 1994, the COPS Office has invested more than $14 billion to help advance community policing.

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This morning, federal, state and local authorities arrested without incident eight members of the Crips East Terrace Gangstas who call themselves the “Skinny Bloc Crew,” including 40–year-old ringleader Alvin Clark (aka “Ray Ray”), on federal drug charges stemming from a “crack” cocaine distribution investigation announced United States Attorney Richard L. Durbin, Jr., Federal Bureau of Investigation Special Agent in Charge Christopher Combs and San Antonio Police Chief William McManus. 

On Wednesday, a federal grand jury in San Antonio returned an indictment charging Clark and the following with one count of conspiracy to possess with intent to distribute “crack” cocaine and one substantive count of possession with intent to distribute “crack” cocaine: 

Earl Whitley, Jr. (aka “Earl Jr”, “E”), age 36;

Dai’Vonte E’Shaun Titus Ross (aka “Tay”), age 21;

Jovon Deante Stewart (aka “Lil JoJo”), age 24;

Paul Low (aka “P-Low”), age 49;

**Joseph Hammond (aka “JoJo”), age 37;

James Bilal Ali (aka “Showtime”), age 34;

Spurgeon Williams (aka “Bubba”), age 47; and,

Joseph Lake (aka “J.L.”), age 29.

** Already in state custody prior to today.

The indictment also charges Ross with one count of use of a firearm in furtherance of a drug trafficking crime. 

The indictment alleges that the defendants conspired to distribute more than 28 grams of “crack” cocaine since January 2016.  The indictment further alleges that on September 19, 2017, Ross was in possession of a black pistol while distributing “crack” cocaine.

Upon conviction, Clark, Whitley, Ali, Hammond, Lake, Stewart, Low, and Williams face an enhanced penalty of between 10 years and Life in federal prison due to their criminal histories.  Ross faces between five and 40 years in federal prison for each drug charge and a mandatory consecutive five years in federal prison on the firearm charge, upon conviction.

This investigation, conducted by local, state and federal authorities, focuses on drug trafficking and violent crime occurring on the city’s East side.  Most all of the narcotics trafficking occurred in the 200 and 300 blocks of Ferris Avenue on the city’s East side. 

The defendants remain in federal custody pending detention hearings next week.  Detention hearings for Clark, Whitley, Low and Ali are scheduled for 10:00am on November 22, 2017, before United States Magistrate Judge Elizabeth S. Chestney.  Detention hearings for Ross, Stewart, Williams and Lake are scheduled for 10:00am on November 30, 2017, before Judge Chestney.  An initial appearance has yet to be scheduled for Hammond.

“Drug trafficking, and the related violence, has a debilitating effect on individuals, families, and communities.   It is a scourge on neighborhoods throughout the nation and causes citizens to live in fear.  The FBI is committed to working with the San Antonio Police Department, along with our federal, state and local partners on the Violent Crime Task Force to ensure children and families can enjoy their community,” stated FBI Special Agent in Charge Christopher Combs.

“Today's arrests are the result of the ongoing collaboration with SAPD and our local, state and federal partners. We will continue to work strategically using intelligence led policing and teamwork to ensure that violent offenders are arrested and prosecuted to the fullest extent of the law,” stated San Antonio Police Chief William McManus.

The FBI and San Antonio Police Department, together with Bexar County Sheriff’s Office, New Braunfels Police Department, Comal County Sheriff’s Office, Texas Department of Public Safety, Homeland Security Investigations, U.S. Marshals Service, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, are investigating this case.  Assistant United States Attorney Sarah Wannarka 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.

In Midland yesterday, a federal judge sentenced a former bookkeeper to 60 months in federal prison for stealing 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.

In addition to the prison term, United States District Judge Robert A. Junell ordered that 52–year-old Kimberley Dale Boyce of Midland to pay $2,039,014.53 restitution and be placed on supervised release for a period of three years after completing her prison term.

On August 10, 2017, a jury found Boyce 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 the verdict, Judge Junell remanded the defendant into the custody of the U.S. Marshals Service.

This case was investigated by the FBI and IRS-Criminal Investigation.  Assistant United States Attorneys William F. Lewis, Jr., and Daniel Castillo prosecuted this case on behalf of the Government.

Three Austinites face federal prison terms and millions in restitution after pleading guilty to defrauding Dell, Inc. and the Internal Revenue Service announced United States Attorney Richard Durbin, Jr., Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio, and IRS-Criminal Investigation Special Agent in Charge William Cotter, San Antonio. 

Appearing before U.S. Magistrate Judge Andrew Austin this morning, 50-year-old Kelly Burton Nunn pleaded guilty to one count of conspiracy to commit wire fraud and one count of subscribing a false Income Tax Return.  Yesterday afternoon, Kelly’s wife, 47-year-old Tobie R. Nunn, pleaded guilty to the tax charge and a third defendant in this case, 55-year-old Bryan Dale Wallace, pleaded guilty to the conspiracy charge.  The conspiracy charge calls for up to five years in federal prison; the tax charge, up to three years in federal prison.  The defendants are also subject to a yet-to-be determined amount of restitution in this case.  Sentencing, before U.S. District Judge Sparks, has yet to be scheduled.

According to court records, Kelly Nunn and Bryan Wallace conspired from January 2007 to August 2012 to defraud Nunn’s employer, Dell, Inc. (Dell), by charging Dell for services Dell did not receive or excessive amounts for services that Dell did receive.  Nunn and Wallace submitted numerous fraudulent invoices under the business name of Bison Services (Bison) for computer-aided-design services related to management of Dell’s business locations.  The defendants admitted that they caused Dell to pay Wallace millions of dollars to which Wallace was not entitled.  Wallace subsequently paid over $1 million to Nunn during the course of their scheme.

By pleading guilty, Kelly and Tobie Nunn admitted that in April 2011, they intentionally filed electronically a fraudulent 2010 Individual Income Tax Return with the IRS that substantially understated their actual income.

FBI agents and IRS-Criminal Investigation agents investigated this case.  Assistant United States Attorney Alan Buie is prosecuting this case on behalf of the Government.

In Del Rio, federal authorities filed a criminal complaint against three individuals for their alleged roles in a farm loan fraud scheme announced United States Attorney Richard L. Durbin, Jr.

The criminal complaint, filed this week, charges Barbara Serna Salinas, a 42-year-old former loan officer for the United States Department of Agriculture (USDA) Farm Service Agency (FSA) in Uvalde, and two loan recipients—Ruben James Valadez, age 43 of Uvalde, and Eric Torres Neira, age 43 of San Antonio--with wire fraud and making false statements on a loan application.

The complaint alleges that from May 2011 through June 2016, Serna in her official capacity issued multiple fraudulent FSA loans.  Furthermore, in exchange for approving the loans, Serna accepted cash or other forms of payment from Neira and Valadez. According to the complaint, a review of USDA loans approved by Serna after 2011 identified several to Neira and Valadez, which totaled more than $150,000. 

Federal authorities arrested Serna and Valadez yesterday in Uvalde, TX.  Neira was taken into custody this morning in San Antonio.  All three have made their initial appearances in federal court and have been released on bond pending resolution of this case.

Upon conviction, the defendants face up to 30 years in federal prison for wire fraud and up to 20 years in federal prison for making a false statement on loan application. 

The United States Department of Agriculture Office of Inspector General-Investigations, with the assistance of the Federal Bureau of Investigation, conducted this investigation.  Assistant United States Attorneys Goran Krnaich and Todd Keagle are prosecuting this case on behalf of the Government.

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

In Midland, a jury yesterday afternoon convicted Andrews County electrician Randall Varian Hanks on federal charges in connection with a false billing scheme and failing to file tax returns that resulted in excess of $1.5 million loss to local businesses announced United States Attorney Richard L. Durbin, Jr., Federal Bureau of Investigation (FBI) Special Agent in Charge Emmerson Buie, Jr., El Paso Division, and Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge William Cotter. 

The jury convicted the 46-year-old, who once owned and operated Sandhills Electric, Inc., of four counts of mail fraud and three counts of failure to file a tax return.

Evidence presented at trial revealed that from June 2013 to May 2016, Hanks, while working for two area oilfield services companies, generated fraudulent service tickets and invoices in excess of $1.5 million for parts and services that he fraudulently claimed to have provided to the two companies’ customers.  Both oilfield service companies paid Hanks and then billed the respective customers for parts and services Hanks claimed to have provided.

Furthermore, testimony revealed that Hanks received more than the applicable threshold in personal income each year, yet failed to file income tax returns with the Internal Revenue Service for the calendar years 2013, 2014, and 2015, resulting in tax losses to the U.S. Government of nearly $500,000.

Hanks remains on bond pending sentencing.  Hanks faces up to 20 years in federal prison and a $250,000 fine on each mail fraud count and up to one year in federal prison and a $25,000 fine for each failure to file a tax return count.  Additionally, he may be required to forfeit property and money he acquired because of his fraudulent scheme.  Sentencing is scheduled for February 13, 2018, in Midland before Senior United States District Judge Robert A. Junell.

The FBI Oilfield Theft Task Force and IRS-CI agents investigated this case.

In San Antonio today, a federal jury convicted Texas Mexican Mafia (TMM) members Jesse Santibanez, age 29, and Alfredo Cardona, age 36, in connection with the death of Balcones Heights Police Officer Julian Pesina in 2014 announced United States Attorney Richard L. Durbin, Jr.; Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division; Texas Department of Public Safety Director Steve McCraw; and, San Antonio Police Chief William McManus. 

The jury convicted both defendants of one count of murder in aid of racketeering and one count of discharging a firearm during a murder in aid of racketeering.  Another TMM member, Ruben Reyes, previously pleaded guilty to similar charges that included this murder.  A fourth TMM member, 37-year-old TMM member Jerry Idrogo pleaded guilty on August 11, 2016, to a racketeering conspiracy charge that included this murder. 

Evidence presented during trial revealed that the defendants murdered Pesina on May 4, 2014, in front of his business, the Notorious Ink Tattoo and Piercing Studio, located on Hillcrest Drive. 

Testimony during trial revealed that Pesina had claimed membership in the TMM, was selling narcotics and paying the “dime” (the 10% street tax) to the TMM, when the TMM learned that Pesina was a Balcones Heights Police Officer.  On May 4, 2014, Idrogo contacted Pesina and arranged for pickup of the “dime” outside of Pesina’s tattoo shop.  Just before meeting Pesina, Idrogo dropped off Santibanez and Cardona on the side of the building.  Once Pesina walked up to the car and handed Idrogo the “dime” payment money, Santibanez and Cardona came around the corner and shot and killed Pesina.

Santibanez, Cardona and Idrogo all remain in federal custody.  Santibanez and Cardona each face a minimum mandatory sentence of life in federal prison.  They are scheduled to be formally sentenced on February 8, 2018, before United States District Judge Xavier Rodriguez.  Sentencing for Idrogo is scheduled for 1:30pm on November 29, 2017, before Judge Rodriguez.  Reyes was previously sentenced to five consecutive life-imprisonment terms. 

The FBI together with the Texas Department of Public Safety, the San Antonio Police Department and the Bexar County Sheriff’s Office investigated this case. 

Julieta Boone-Tellez, age 43, of Richland Hills, TX, is charged by federal grand jury indictment with allegedly influencing a San Antonio federal juror during the trial of her brother that resulted in a mistrial announced United States Attorney Richard L. Durbin, Jr., and United States Marshal David Sligh.

On September 18, 2017, before Chief United States District Judge Orlando L. Garcia in San Antonio, jury selection and trial began for Romeo Boone-Escorcia in criminal docket number SA-17-CR-352.  Boone-Escorcia, a Mexican National, was charged by federal grand jury indictment with one count of illegal re-entry into the United States after having been previously deported.

The indictment (SA-17-CR-816) alleges that on September 19, 2017, Boone-Tellez made contact with a trial juror and showed that juror a photograph depicting her brother.  Subsequently, Judge Garcia declared a mistrial.  Judge Garcia scheduled the retrial for November 6, 2017, however, Boone-Escorcia entered a guilty plea yesterday to the illegal re-entry charge and was sentenced to time served (approx. 6 ½ months).  Boone-Escorcia now faces formal deportation proceedings. 

Boone-Tellez, who was arrested in the Northern District of Texas on October 13, 2017, is currently on bond.  Her arraignment is scheduled for 1:30pm on November 13, 2017, in San Antonio before United States Magistrate Judge Henry J. Bemporad.  Upon conviction of the influencing charge, Boone-Tellez faces up to ten years in federal prison.

The United States Marshals Service investigated this case.  Assistant United States Attorney William R. Harris is prosecuting this case on behalf of the government.

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

In San Antonio, a federal judge sentenced 37-year-old former U.S. Army Sergeant Julian Prezas of San Antonio, to 200 months in federal prison for his role in a straw purchasing scheme that involved firearms going to the Gulf Cartel announced United States Attorney Richard L. Durbin, Jr., Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Fred Milanowski, Houston Division, and Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden, San Antonio Division.

In addition to the prison term, Chief United States District Judge Orlando Garcia ordered that Prezas pay a $600 special assessment and be placed on supervised release for a period of 3 years after completing his prison term.

On December 12, 2016, Prezas pleaded guilty to five counts of making a false statement during the purchase of firearms and one count of attempting to export into Mexico defense articles on the U.S. Munitions List without obtaining a license or written authorization.  By pleading guilty, Prezas admitted to conspiring with others from April 2015 to August 2015 to illegally purchase over 40 assault rifles.  According to court records, Prezas was the actual purchaser of the firearms even though his co-defendants, other former U.S. Army soldiers, falsely indicated on their ATF form 4473 that they were buying the firearms at the time of purchase.  Furthermore, Prezas, at times while in uniform and in a government vehicle, admittedly delivered the firearms to multiple individuals, one of whom was delivering them to members of the Gulf Cartel in Mexico.

Earlier this year, Judge Garcia sentenced Prezas’ co-defendants--33-year-old Thomas John Zamudio, 47-year-old Ricardo Esparza Salazar, and 32-year-old Christopher Brown--to two years probation after they pleaded guilty to making a false statement during the acquisition of a firearm.

“It is deeply troubling that a member of the United States military flagrantly violated federal firearms laws, and engaged three other servicemen in a straw purchasing scheme.  This defendant was keenly aware that the firearms were destined for the Gulf Cartel in Mexico. While this may be rare, the sentencing sends a clear message that no one is exempt from obeying the law,” said ATF Special Agent in Charge Fred Milanowski.

“Stopping the flow of weapons illegally exported into Mexico is a top priority for HSI,” said Special Agent in Charge Shane Folden, HSI San Antonio.  “These weapons often contribute to fueling the violence committed by drug cartels, which drastically affects communities both in Mexico and in the United States.  This sentence sends a strong message to weapons traffickers that law enforcement will work aggressively with our federal law enforcement partners to combat this egregious and dangerous criminal activity.”

ATF agents and HSI agents, together with Army Criminal Investigation Command agents, investigated this case.  Assistant United States Attorney Joseph Blackwell prosecuted this case on behalf of the government.

In Beaumont this morning, 40-year-old Isaac Mireles of Houston was sentenced to 78 months in federal prison for attempting to file fraudulent liens against a former United States Attorney for the Eastern District of Texas announced United States Attorney Richard L. Durbin, Jr., Western District of Texas, and Federal Bureau of Investigation Special Agent in Charge Perrye K. Turner, Houston Division.

In addition to the prison term, United States District Judge Marcia A. Crone ordered that Mireles be placed on supervised release for a period of three years after completing his prison term.  Judge Crone also ordered that the 78-month prison term run consecutive to a 57-month federal prison term Mireles is currently serving.

On June 21, 2017, following a two-day trial, a federal jury convicted Mireles of two counts of retaliation against a federal officer or employee by false claim.  Testimony during trial revealed that Mireles, while in the custody of the Bureau of Prisons in Beaumont, knowingly mailed documents in an attempt to file two false liens—one on January 14, 2016, in Brazoria County; the other, on February 17, 2016, in Harris County.  Both retaliatory liens claimed the former U.S. Attorney, whose official duty was to oversee the prosecution of the defendant in a prior federal drug case, owed Mireles $5 million.

On June 17, 2014, Mireles pleaded guilty to two federal conspiracy charges involving the possession with intent to distribute cocaine and marijuana.  On February 4, 2015, United States District Judge Thad Heartfield sentenced Mireles to 57 months incarceration for those offenses.

“Mireles’ sole purpose was to harass this public servant for doing his job.  Such malicious harassment of public officials is unacceptable and will not be tolerated,” stated United States Attorney Richard L. Durbin, Jr.

Agents with the FBI investigated this case.  Assistant United States Attorney Sarah Wannarka of the Western District of Texas prosecuted this case on behalf of the government.  The United States Attorney’s Office for the Eastern District of Texas was recused in this matter.

In San Antonio, 61-year-old James Matthew Bradley, Jr., pleaded guilty to federal charges in connection with an undocumented alien smuggling operation that resulted in ten deaths 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.

Appearing before United States Magistrate Judge Henry Bemporad this afternoon, Bradley pleaded guilty to one count of conspiracy to transport aliens resulting in death and one count of transporting aliens resulting in death.  By pleading guilty, Bradley admitted that on July 23, 2017, he conspired to transport and did transport undocumented aliens in the United States for financial gain; to further their illegal entry into this country; with reckless disregard that they entered this country illegally; and, which resulted in the death of ten undocumented aliens.

Bradley, who faces up to life in federal prison, remains in custody pending sentencing scheduled for 9:00am on January 22, 2018, before Senior United States District Judge David A. Ezra.  Bradley also agreed to forfeit to the Government his tractor-trailer rig, plus approximately $5,600 in U.S. currency and a .38 caliber pistol recovered from inside the cab.

According to court records, which Bradley admitted were factually correct, San Antonio Police Department (SAPD) officers responded to a call at the Wal-Mart store located at 8538 Interstate 35 in San Antonio shortly after midnight on Sunday, July 23, 2017.  An officer encountered a tractor-trailer behind the store, finding a number of people standing and lying in the rear of the trailer, and the driver, Bradley, in the cab.  At the scene, law enforcement officers discovered 39 undocumented aliens.  Of the 39 aliens found at the scene ten (10) died, eight (8) died in the trailer and two (2) died later in area hospitals.  There were four juveniles, aged 14-17 years old, within the group of aliens in Bradley’s trailer who were unaccompanied by an adult. 

Court records further state that the undocumented aliens estimated the trailer contained between 70 and 180 to 200 people during transport.  They also described differing fees for being transported. 

“Today’s admission of guilt by Mr. Bradley helps to close the door on one of the conspirators responsible for causing the tragic loss of life and wreaking havoc on those who survived this horrific incident,” said Shane M. Folden, special agent in charge, HSI San Antonio.  “This case is a glaring reminder that alien smugglers are driven by greed and have little regard for the health and well-being of their human cargo, which can prove to be a deadly combination.  HSI is committed to aggressively targeting human smugglers and smuggling organizations, who continually victimize people for profit.”

Bradley’s co-defendant, 47–year-old Pedro Silva Segura, an undocumented alien residing in Laredo, TX, faces one count of conspiracy to transport and harbor undocumented aliens for financial gain 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; and, two counts of transporting undocumented aliens resulting in serious bodily injury and placing lives in jeopardy.  Those charges stem from a superseding federal grand jury indictment handed down on September 20, 2017.

Silva, who was arrested in Laredo on an alien smuggling charge, is in custody and awaiting transfer to San Antonio.

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.  Silva is considered innocent until proven guilty in a court of law.

In Austin this afternoon, 68-year-old patient recruiter Glen Elwood McKenzie, Jr., of Cedar Park, TX, pleaded guilty to federal charges in connection with a 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.

Appearing before United States Magistrate Judge Mark Lane, McKenzie pleaded guilty to one count of conspiracy to violate the federal anti-kickback law and one count of soliciting and receiving kickbacks. Each count calls for up to five years in federal prison.  McKenzie remains on bond pending sentencing, which has yet to be scheduled.

According to court records, Dr. William Joseph Dubin and his son, Dr. David Fox Dubin were licensed psychologists who operated Psychological A.R.T.S. in Austin.  Between April 2011 and March 2013, McKenzie was the President of the Board of Directors of an emergency shelter house located approximately eighty miles from Austin.  That facility 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.  By pleading guilty, McKenzie admitted to receiving over $15,000 in kickbacks from the doctors during that time for using 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. 

In July, a grand jury indicted the doctors on federal charges including: conspiracy to violate the federal anti-kickback law; five counts of paying illegal kickbacks; 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.   The indictment alleges that from January 2011 to June 2015, the doctors 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. 

Jury selection for both doctors is scheduled for January 2, 2018, before U.S. District Judge Sam Sparks in Austin.  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.  

The Federal Bureau of Investigation, together with investigators from the Texas Attorney General’s Medicaid Fraud Control Unit, investigated this case. Special Assistant United States Attorney Rex Beasley 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.

In Austin, members and associates of the Dove Springs Gangstas (aka “DSG”) face federal charges in connection with the death of Darian Longoria in December 2015 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.

A ten-count federal grand jury indictment charges 22–year-old Richard Ortega, 21-year-old Orlando Arroyo (aka “Orly”), and 20-year-old Brian Aguayo with one count of murder in aid of racketeering, one count of kidnapping in aid of racketeering and one count of conspiracy to commit kidnapping in aid of racketeering.  The indictment also charges Ortega with two counts, and Arroyo with one count, of discharging a firearm during a drug trafficking crime or a crime of violence.  Ortega and Arroyo are also charged with one count of possession/use/carrying a firearm in relation to a crime of violence resulting in murder.

The indictment further charges Ortega with one count of conspiracy to possess with intent to distribute marijuana from 2013 to May 2017.  The indictment also charges 35-year-old Jorge Avilez-Mondragon (aka “Bunny”, “Conejo”), 36-year-old Norma Luis-Frias, 21-year-old Jacob Guzman, 22-year-old Leslie Mendez-Munoz, and 20–year-old Kathia Gomez with one count of conspiracy to possess with intent to distribute cocaine from April 2016 through October 2016.  Avilez-Mondragon and Mendez-Munoz are also charged with two counts of possession with intent to distribute cocaine within 1,000 feet of a school, namely, Perez Elementary.  Luis-Frias and Guzman are charged with one count of possession with intent to distribute cocaine near a school (Perez).

The indictment alleges that members of DSG engaged in acts of violence, including murder, attempted murder, robbery and narcotics distribution primarily in and around Austin in order to further, preserve and protect the power, territory and profits of their criminal enterprise.  The indictment specifically alleges that Ortega, Arroyo and Aguayo conspired to kidnap, shoot and kill 16-year-old Darian Longoria on or about December 7, 2015.  On January 3, 2016, Longoria’s body was discovered along Onion Creek.

Statutory penalties upon conviction are as follows: Murder in aid of racketeering -- mandatory life in federal prison; Kidnapping in aid of racketeering charge -- up to life in federal prison; Conspiracy to commit kidnapping in aid of racketeering -- up to ten years in federal prison; Possession of a firearm during a drug trafficking or violent crime – between ten years and life in federal prison; Possession/use/carrying a firearm in relation to a crime of violence resulting in murder – up to life in federal prison; Conspiracy to possess with intent to distribute marijuana – up to five years in federal prison; Conspiracy to possess with intent to distribute cocaine – up to 20 years in federal prison; and, Possession with intent to distribute cocaine near a school – between one and 40 years in federal prison.

All of the defendants remain in federal custody with the exception of Kathia Gomez.  At a detention hearing this morning, U.S. Magistrate Judge Mark Lane ordered that Luis-Frias, Avilez-Mondragon, Arroyo and Guzman be held without bond pending trial.  Prior to today, Ortega, Aguayo, and Mendez-Munoz waived their detention hearings agreeing to remain in federal custody pending trial.  U.S. Magistrate Judge Andrew Austin released Gomez on a personal recognizance bond on September 25, 2017.  Jury selection and trial in this case is scheduled for December 4. 2017, before U.S. District Judge Sam Sparks in Austin.

The FBI Safe Streets Task Force and the Austin Police Department investigated this case.  Assistant United States Attorneys Matt Harding and Dan Guess are prosecuting this case on behalf of the Government.  The FBI Safe Streets Task Force is comprised of investigators from the Austin Police Department, Texas Department of Public Safety and Immigration and Customs Enforcement - Enforcement and Removal Operations (ICE ERO).

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.

In El Paso today, a federal judge sentenced 51-year-old El Paso attorney Marco Antonio Delgado (aka Marco Delgado Licon) to ten years in federal prison in connection with a multi-million dollar wire fraud and money laundering scheme announced United States Attorney Richard L. Durbin, Jr. and Homeland Security Investigations Special Agent in Charge Waldemar Rodriguez.

United States District Judge David C. Guaderrama also ordered that half of the ten-year-term of imprisonment imposed today run consecutive to a 16-year prison term Delgado is currently serving in a separate federal case. Judge Guaderrama scheduled a hearing to determine restitution in this case for November 28, 2017.

On September 21, 2016, jurors found Delgado guilty of three counts of wire fraud, seven counts of money laundering and nine counts of engaging in monetary transactions of criminally derived property.  According to court documents and trial testimony, in January 2010, Delgado, as a legal representative of FGG Enterprises, Inc. (FGG), signed a $121 million contract between FGG and the Comisión Federal de Electricidad (CFE), a Mexican-state-owned utility company, for the acquisition and installation of power turbines for the Agua Prieta II power plant located in Agua Prieta, Sonora, Mexico.  Pursuant to the agreement, payments from CFE to FGG were to be deposited into a FGG bank account located in El Paso.

Evidence during trial also revealed that Delgado, for the purpose of personal enrichment and without the consent of the sole owner of FGG, submitted a fraudulent written request to CFE, causing the payments that were supposed to be made to FGG to instead be deposited in an account in the Turks and Caicos Island, where Delgado controlled the funds.  As a result, the first two payments from CFE—one on March 8, 2010, in the amount of $20 million and one on July 6, 2010, in the amount of $12 million—were deposited into the bank account in the Turks and Caicos Islands, instead of FGG’s account.  Delgado subsequently diverted millions from the account in the Turks and Caicos Islands.  He used the monies for, among other things, the purchase of a residence in El Paso and a condominium in Taos, NM.

The Court also ordered the forfeiture of Delgado’s properties traceable to his illegal scheme, including the defendant’s residence and furnishings in El Paso, a condominium in Taos, NM and more than $2M located in the Turks and Caicos bank account. Delgado has remained in federal custody since his arrest in November 2012.  Delgado was previously sentenced to 16 years in federal prison, after a jury trial before Senior U.S. District Judge David Briones in October of 2013, for conspiracy to launder up to $600 million in illegal drug proceeds.

Homeland Security Investigations (HSI) conducted this investigation.  Assistant United States Attorneys Debra Kanof, Anna Arreola and Jose Luis Gonzalez prosecuted this case on behalf of the Government.

In El Paso this afternoon, U.S. Magistrate Judge Anne T. Berton ordered 36 year-old Martin Arody Sanchez Aguirre held without bond pending trial on federal drug trafficking charges.  Sanchez Aguirre is one of five individuals indicted earlier this month for trafficking in cocaine and heroin throughout the El Paso area from April 2014 through July 2015 announced United States Attorney Richard L. Durbin, Jr. and Acting Special Agent in Charge Steve Borak, U.S. Drug Enforcement Administration, El Paso Division.

This multi-year investigation targeted a drug trafficking organization based in Juarez, Mexico.  The organization smuggled large quantities of heroin and cocaine from Juarez into El Paso, Texas, and distributed the drugs in various parts of the United States, including Chicago, Illinois.  This investigation resulted in the seizure of over forty kilograms of cocaine and over ten kilograms of heroin.  

On September 13, 2017, a federal grand jury returned a five-count indictment against Sanchez Aguirre, 47 year-old Ruben Abbud-Villarreal, 45 year-old Miguel Alonso Olaguez, 26 year-old Jose Guzman, and 33 year-old Jaime Gonzalez-Nava.  Count one of the indictment charges all five defendants with one count of conspiracy to possess with intent to distribute more than 5 kilograms of cocaine.  Count two of the indictment charges Gonzalez-Nava and Sanchez Aguirre with conspiracy to import more than 5 kilograms of cocaine.  Count three of the indictment charges Abbud-Villarreal and Olaguez with possession with intent to distribute more than five kilograms of cocaine in October 2014.  Count four charges Guzman and Gonzalez-Nava with conspiracy to possess with intent to distribute more than one kilogram of heroin.  Count five charges Gonzalez-Nava with conspiracy to import heroin.  Other members of this drug trafficking conspiracy have previously been federally prosecuted and are currently serving prison terms in the Bureau of Prisons. 
 
All charges call for up to life in federal prison upon conviction.  On Tuesday, Judge Anne T. Berton set bond at $35,000 each for Guzman and Olaguez.  Abbud-Villarreal remains in custody pending trial.  Gonzalez-Nava is in custody in Illinois awaiting transfer to the Western District of Texas.  A trial date has yet to be scheduled.  

These federal and state charges resulted from an Organized Crime Drug Enforcement Task Force (OCDETF) investigation conducted by the Drug Enforcement Administration with assistance from the Federal Bureau of 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.

Today, federal authorities arrested three individuals indicted in connection with a multi-million dollar Austin-based Stolen Identity Refund Fraud (SIRF) scheme announced United States Attorney Richard L. Durbin, Jr.; Special Agent in Charge William Cotter, Internal Revenue Service-Criminal Investigation (IRS-CI); Inspector in Charge Adrian Gonzalez, United States Postal Inspection Service (USPIS), Houston Division; and, Special Agent in Charge Shane Folden, Homeland Security Investigations (HSI), San Antonio Division.

Authorities arrested 54–year-old Nigerian National George Najomo in Austin; and, 36-year-old Sudan National Ibrahim Alu and 40-year-old Sudan National George Ismail in Grand Prairie, TX.  Authorities are still looking to arrest 44-year-old Nigerian National Dele Akanbi (aka “SK”).  A warrant has been issued for Akanbi’s arrest.

A ten-count federal grand jury indictment, unsealed this afternoon, charges all four defendants with one count of conspiracy to commit fraud and one count of aggravated identity theft.  All but Akanbi are also charged with one count of theft of public money.   Alu and Ismael are also charged with one count of wire fraud. 

The indictment alleges that from January 2013 through April 2016, the defendants conspired to use stolen Personal Identification Information (PII) to commit fraud.  According to the indictment, the defendants, while operating a cleaning business in Austin, stole hundreds of patient forms and other paperwork from multiple medical facilities in the Austin area.  The defendants then used that stolen information, as well as stolen PII from other unknown sources, to obtain credit cards and file numerous fraudulent income tax returns seeking over $3,000,000 in refunds from the IRS.  The indictment alleges that the defendants collected over $630,000 in fraudulent Income Tax Return refunds and close to $17,000 from fraudulent credit card transactions.

Upon conviction, the defendants face up to 20 years in federal prison for the conspiracy charge; up to 20 years in federal prison for wire fraud; up to ten years for theft of public money; and, a mandatory two years in federal prison for aggravated identity theft.   

Agents from the IRS-CI, USPIS and HSI conducted this investigation.  Assistant United States Attorneys Michael C. Galdo and Gregg N. Sofer 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.

In San Antonio today, United States District Judge Xavier Rodriguez sentenced 41-year-old Corey Lee Dorsey to 151 months in federal prison followed by 25 years of supervised release for distribution of child pornography announced United States Attorney Richard Durbin, Jr. and Texas Attorney General Ken Paxton.

On May 11, 2017, Dorsey pleaded guilty to the charge.  By pleading guilty, Dorsey admitted that on September 21, 2013, he uploaded a video depicting child pornography to the Internet. 

On December 16, 2015, investigative agents from the Texas Attorney’s General’s Office along with Live Oak Police officers executed a search warrant for the defendant’s residence, where they seized the defendant’s computer and related electronic media.  A subsequent forensics evaluation of the seized items revealed the presence of 35,945 images and 1,896 videos containing child pornography.

The Cyber Crimes Unit of the Texas Attorney General’s Office conducted this investigation.  Assistant United States Attorney Sarah Wannarka prosecuted this case on behalf of the Government. 

In San Antonio today, 35-year-old Bandido Outlaw Motorcycle Organization (OMO) San Antonio Centro Chapter member Norberto Serna, Jr. (aka “Hammer”) of San Antonio pleaded guilty to a federal charge in connection with the murder of Hells Angel Anthony Benesh in 2006 announced United States Attorney Richard L. Durbin, Jr., Drug Enforcement Administration (DEA) Special Agent in Charge Will Glaspy, Houston Division; Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division; Texas Department of Public Safety Director Steve McCraw; Austin Police Chief Brian Manley; and, San Antonio Police Chief William McManus.

Appearing before United States Magistrate Judge Elizabeth S. Chestney, Serna pleaded guilty to one count of Aiding and Abetting Using and Discharging a Firearm During and In Relation to a Crime of Violence, specifically Murder in Aid of Racketeering. 

Court records allege that Benesh was attempting to start a Texas Chapter of the Hell’s Angels OMO in Austin, Texas in 2006.  Members of the Bandidos OMO warned Benesh to cease his activities and recruitment, which Benesh ignored.  Serna and others then murdered Benesh on March 18, 2006, outside an Austin restaurant to protect the power, reputation and territory of the Bandidos enterprise.  Bandidos National Sergeant at Arms Johnny Romo, Bandidos San Antonio Centro Chapter Sergeant at Arms Jesse James Benavidez and Bandidos Centro Chapter Member Robert Romo have all pleaded guilty to related federal charges for their roles in the incident.

Serna, who remains in federal custody, faces up to life in federal prison.  Sentencing is scheduled for June 4, 2018, before Senior U.S. District Judge David A. Ezra in San Antonio. 

The FBI, DEA and Texas DPS together with the Internal Revenue Service-Criminal Investigation, U.S. Customs and Border Protection, Austin Police Department, New Braunfels Police Department, Seguin Police Department, San Antonio Police Department, Bexar County Sheriff’s Department, Atascosa County Sheriff’s Department, and the Bexar County District Attorney’s Office are conducting this ongoing investigation. 

In Del Rio today, United States District Judge Alia Moses sentenced 33–year-old Adrian Pineda-Orozco, an undocumented alien residing in Houston, to 50 years in federal prison for his role in scheme to smuggle over 43 kilograms of liquid methamphetamine into the United States announced United States Attorney Richard L. Durbin, Jr., and Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden, San Antonio Division.

On January 20, 2017, jurors convicted Pineda-Orozco of one count of conspiracy to possess with intent to distribute methamphetamine and one count of conspiracy to import methamphetamine.  Prior to trial, Pineda-Orozco’s co-defendants, 21-year-old Marcelo Guzman and 22–year-old Cyndy Palma, both of Houston, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine.

Testimony during trial revealed that the defendant orchestrated a statewide methamphetamine importation and distribution scheme, with prior deliveries to Houston and Dallas.  On December 18, 2015, Customs and Border Protection officers at the Eagle Pass Port of Entry discovered 15 plastic bottles containing liquid methamphetamine inside a vehicle being driven by Guzman and Palma.  Guzman told officers that he was supposed to deliver the methamphetamine to an individual in Houston.  HSI agents executed a controlled delivery of the methamphetamine.  Upon arriving at the meeting location, authorities discovered Pineda-Orozco waiting for them.  After the agents identified themselves, Pineda-Orozco got back into his vehicle and fled the scene narrowly missing an HSI agent in the process.  Pineda-Orozco led authorities on a high-speed chase through residential neighborhoods.  The pursuit continued until spike strips disabled his vehicle.  No one was injured as a result of the pursuit.  Pineda-Orozco was arrested.

Pineda-Orozco has remained in custody since his arrest.  Guzman and Palma also remain in federal custody.  On July 10, 2017, Judge Moses sentenced Guzman to 144 months in federal prison following by five years of supervised release.  On June 5, 2017, Judge Moses sentenced Palma to 168 months in federal prison followed by five years of supervised release and ordered that Palma pay a $1,500 fine.

“The heavy sentenced imposed on Orozco sends a clear message that there are serious consequences for trafficking in narcotics,” said Special Agent in Charge Shane Folden, HSI San Antonio. “HSI will continue to work closely with its law enforcement partners to bring narcotic traffickers to justice.”

The investigation was conducted by HSI together with U.S. Customs and Border Protection, Drug Enforcement Administration, and the Houston Police Department.  Assistant United States Attorneys Paul Harle and Amy Hail prosecuted this case on behalf of the government.

In San Antonio today, 40-year-old Bandidos Outlaw Motorcycle Organization (OMO) San Antonio Centro Chapter Sergeant at Arms Jesse James Benavidez pleaded guilty to a federal charge in connection with the murder of Hells Angel Anthony Benesh in 2006 announced United States Attorney Richard L. Durbin, Jr., Drug Enforcement Administration (DEA) Special Agent in Charge Will Glaspy, Houston Division; Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division; Texas Department of Public Safety Director Steve McCraw; Austin Police Chief Brian Manley; and, San Antonio Police Chief William McManus.

Appearing before United States Magistrate Judge Elizabeth S. Chestney, Benavidez pleaded guilty to one count of Aiding and Abetting Using and Discharging a Firearm During and In Relation to a Crime of Violence, specifically Murder in Aid of Racketeering. 

Court records allege that Benesh was attempting to start a Texas Chapter of the Hell’s Angels OMO in Austin, Texas in 2006.  Members of the Bandidos OMO warned Benesh to cease his activities and recruitment, which Benesh ignored.  Benavidez and others then murdered Benesh on March 18, 2006, outside an Austin restaurant to protect the power, reputation and territory of the Bandidos enterprise.  On Friday, September 22, 2017, Bandidos National Sergeant at Arms Johnny Romo and Bandidos Centro Chapter Member Robert Romo pleaded guilty to related federal charges for their roles in the incident.

Benavidez, who remains in federal custody, faces up to life in federal prison.  Sentencing is scheduled for May 28, 2018, before Senior U.S. District Judge David A. Ezra in San Antonio.  Johnny Romo and Robert Romo also remain in federal custody.  Their sentencings are scheduled for May 14, 2018, and May 21, 2018, respectively, before Judge Ezra.

The FBI, DEA and Texas DPS together with the Internal Revenue Service-Criminal Investigation, U.S. Customs and Border Protection, Austin Police Department, New Braunfels Police Department, Seguin Police Department, San Antonio Police Department, Bexar County Sheriff’s Department, Atascosa County Sheriff’s Department, and the Bexar County District Attorney’s Office are conducting this ongoing investigation. 

In San Antonio today, two high-ranking leaders of the Bandidos Outlaw Motorcycle Organization (OMO) pleaded guilty to federal charges in connection with the murder of Hells Angel Anthony Benesh in 2006 announced United States Attorney Richard L. Durbin, Jr., Drug Enforcement Administration (DEA) Special Agent in Charge Will Glaspy, Houston Division; Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division; Texas Department of Public Safety Director Steve McCraw; Austin Police Chief Brian Manley; and, San Antonio Police Chief William McManus.

Appearing before United States District Judge Henry J. Bemporad, 47–year-old Bandidos National Sergeant at Arms Johnny Romo (aka “Downtown Johnny”) of San Antonio and 45-year-old Bandidos San Antonio Centro Chapter member Robert Romo of San Antonio pleaded guilty to one count of Murder in Aid of Racketeering and one count of Aiding and Abetting Using and Discharging a Firearm During and In Relation to a Crime of Violence, specifically Murder. 

Court records allege that Benesh was attempting to start a Texas Chapter of the Hell’s Angels OMO in Austin, Texas in 2006.  Members of the Bandidos OMO warned Benesh to cease his activities and recruitment, which Benesh ignored.  Johnny Romo, Robert Romo and others then murdered Benesh on March 18, 2006, outside an Austin restaurant to protect the power, reputation and territory of the Bandidos enterprise.

Because of their guilty pleas, the defendants face life in federal prison.  Johnny Romo and Robert Romo remain in federal custody.  Sentencings are scheduled for May 14, 2018, and May 21, 2018, respectively, before Senior U.S. District Judge David A. Ezra in San Antonio.

The FBI, DEA and Texas DPS together with the Internal Revenue Service-Criminal Investigation, U.S. Customs and Border Protection, Austin Police Department, New Braunfels Police Department, Seguin Police Department, San Antonio Police Department, Bexar County Sheriff’s Department, Atascosa County Sheriff’s Department, and the Bexar County District Attorney’s Office are conducting this ongoing investigation. 

In Austin today, a federal judge sentenced 65–year-old pilot Wayne Douglas Brunet to 37 months in federal prison for 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.

In addition to the prison term, U.S. District Judge Sam Sparks ordered that Brunet pay a $5,000 fine and be placed on supervised release for a period of three years after completing his prison term. Judge Sparks also ordered that Brunet forfeit his 1969 Piper PA-30 Comanche aircraft, $5,400 in U.S. Currency, and approximately $3,000 worth of prepaid cards seized by law enforcement.

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 has remained in federal custody since his arrest.  On June 28, 2017, Brunet pleaded guilty to the drug trafficking charge.

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 prosecuted this case on behalf of the Government.

In San Antonio this morning, a federal judge sentenced 54-year-old Mack Cole, Jr., to 27 months in federal prison for scheming to defraud the Department of Veterans Affairs Disability Compensation Program announced United States Attorney Richard L. Durbin, Jr.

In addition to the prison term, Chief United States District Judge Orlando Garcia ordered that Cole pay $375,055.85 restitution to the Veteran’s Benefit Administration and $59,538.60 restitution to the Veterans Health Administration.  Judge Garcia also ordered that Cole be placed on supervised release for a period of three years after completing his prison term. 

On June 14, 2017, 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.

Special Agents with the VA OIG investigated this case.  Assistant United States Attorney Bud Paulissen prosecuted this case on behalf of the Government.

In San Antonio this morning, 58-year-old Theodore Edward DeAubrey was sentenced to 151 months in federal prison for distribution of child pornography announced United States Attorney Richard L. Durbin, Jr., and FBI Special Agent in Charge Christopher Combs, San Antonio Division.

In addition to the prison term, Chief United States District Judge Orlando Garcia ordered that DeAubrey pay a total of $30,000 restitution to six known victims depicted in the images he distributed.  Judge Garcia also ordered that DeAubrey be placed on supervised release for a period of three years after completing his prison term. 

DeAubrey was the subject of an undercover child pornography investigation conducted by the FBI.  On January 15, 2016, agents executed a search warrant and seized the defendant’s home computer.  Upon examination, agents discovered the computer contained approximately 200 files, mostly video files, depicting child pornography. 

On November 15, 2016, DeAubrey pleaded guilty to the distribution charge.  By pleading guilty, DeAubrey admitted to distributing approximately 1,500 files on April 10, 2015, most of which depicted prepubescent children, including toddlers, engaged in sexually explicit conduct.

Assistant United States Attorneys Tracy Thompson and Diana Cruz-Zapata prosecuted this case on behalf of the Government.

In San Antonio this afternoon, a federal grand jury returned a superseding indictment adding another defendant and additional charges in the case against 60–year-old James Matthew Bradley, Jr., for an alleged smuggling operation that resulted in the deaths of ten undocumented aliens in July 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.

United States Attorney Durbin also announced a filing this afternoon serving notice to the Court that the Government will not seek the death penalty against Bradley.

The seven-count superseding indictment charges Bradley and 47–year-old Pedro Silva Segura, an undocumented alien residing in Laredo, TX, with one count of conspiracy to transport and harbor undocumented aliens for financial gain 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; and, two counts of transporting undocumented aliens resulting in serious bodily injury and placing lives in jeopardy.  The superseding indictment also charges Bradley alone with the following (3) counts:  transportation of undocumented aliens resulting in death; transporting undocumented aliens resulting in serious bodily injury and placing lives in jeopardy; and, possession of a firearm by a convicted felon.

As for Bradley, he faces up to life imprisonment upon conviction for the conspiracy and transportation-resulting-in-death charges.  As for Silva, the maximum penalty upon conviction of the conspiracy and transportation-resulting-in-death charges is life imprisonment, or the death penalty.  Upon conviction of the conspiracy and transportation-resulting-in-serious-bodily-injury charges, the defendants face 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. 

The superseding indictment alleges that Silva participated in the conspiracy by transporting undocumented aliens and attempting to conceal, harbor and shield them from detection.

Bradley remains in federal custody.  Silva, who was arrested in Laredo on an unrelated charge, is in custody and awaiting transfer to San Antonio for his yet-to-be scheduled initial appearance in federal 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, along with Special Assistant United States Attorney Michael Hoyle from the Bexar County District Attorney’s Office, 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.

In Waco today, a federal jury convicted a Dripping Springs man for allegedly making threats to kill individuals on Fort Hood in back in February announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation (FBI) Special Agent in Charge Christopher Combs, San Antonio Division.

Jurors found 29-year-old Thomas Anthony Chestnut, Jr., guilty of one count of threatening to assault or murder a uniformed service member and one count of interstate communications with threat to injure. Chestnut, who has remained in federal custody since being arrested by FBI agents on February 24, 2017, faces up to ten years in federal prison on the threaten-to-assault charge and up to five years in federal prison on the threatening- communications charge. Sentencing is scheduled for December 1, 2017, before U.S. District Judge Robert Pitman in Waco.

Testimony during the two-day trial revealed that on February 22, 2017, Chestnut made verbal threats when he called and spoke with a sergeant at the US Army 1st Calvary Division at Fort Hood. Chestnut threatened to go to Fort Hood, kill the sergeant, take hostages, start a mass killing spree and then kill himself if he was not allowed to speak with someone of rank. Chestnut then spoke with a major and advised that he was a former soldier wrongly accused of a crime and eventually released from prison in 2016. Chestnut further advised if he was unable to speak with a U.S. Army III Corps Commander or a Sergeant Major regarding back pay, or did not receive the money he believed was owed to him, that he planned to shoot soldiers on Fort Hood.

“Threats of this nature are taken seriously,” stated United States Attorney Richard L. Durbin, Jr.

The FBI together with the U.S. Army Military Police Investigations at Fort Hood and the Hays County Sheriff’s Office conducted this investigation. Special Assistant U.S. Attorney/Active Duty U.S. Army Major Benjamin Hogan and Assistant U.S. Attorney Chris Blanton are prosecuting this case on behalf of the government.

In Austin today, a federal judge sentenced 40–year-old Austin and Houston resident Marvin Lewis (aka “Beau Louis”), to 77 years in federal prison followed by three years of supervised release for 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.

In addition to the prison term, United States District Judge Lee Yeakel ordered that Lewis pay $1,596,873 restitution and a $2,400 special assessment.  Judge Yeakel also ordered that Lewis forfeit to the government a 2010 Porsche Panamera, approximately $25,000 in U.S. Currency, as well as various pieces of gold and diamond jewelry recovered by authorities.

On June 16, 2017, jurors found Lewis guilty of one count of conspiracy to interfere with Commerce by threats or violence; seven substantive counts of interference with Commerce by threats or violence; twelve counts of money laundering; four 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,  who represented himself at trial, 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 the 2010 Porsche Panamera and by gambling at a casino in Louisiana.

“With more than 30 prior felony convictions, federal prison is an ideal location for Marvin Lewis to call a permanent home.  No longer will Lewis be able to live a lavish lifestyle and a have nothing but complete disregard for others’ personal property,” stated United States Attorney Richard L. Durbin, Jr.

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.  Yesterday, Judge Yeakel sentenced Grubbs to 184 months in federal prison followed by three years of supervised release.  Judge Yeakel also ordered that Grubbs pay, jointly and severally with Lewis, $1,047,924 restitution in this case.

“Today's sentencing of Marvin Lewis sends a clear message to those who attempt to hide their ill-gotten gains,” said William J. Cotter, Special Agent in Charge San Antonio Field Office.  “All financial transactions leave a trail and IRS CI Special Agents followed the money that proved Lewis lived a lifestyle he could not legitimately afford.” 

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 prosecuted this case on behalf of the Government.

In San Antonio this morning, 29-year-old Vicente Rodriguez Hinojos, III, was sentenced to 585 months in federal prison for production 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 Hinojos pay two of his victims $25,000 each in restitution and be placed on supervised release for a period of ten years after completing his prison term.  Hinojos has remained in federal custody since his arrest on May 27, 2016.

On April 19, 2017, Hinojos pleaded guilty to two counts of production of child pornography.  By pleading guilty, Hinojos admitted that between 2012 and May 12, 2016, he produced visual depictions of sexually explicit conduct involving a minor.  According to court records, two of Hinojos’ victims were as young as two years old. 

Agents from the FBI’s San Antonio Division executed a search warrant for the defendant’s residence on May 26, 2016, where they seized the defendant’s computer, USB thumbdrives, Apple iPhone and an HTC cellular phone.  A subsequent forensics evaluation of one of Hinojos’ phones revealed the presence 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.  

In San Antonio this morning, Special Agents with the Federal Bureau of Investigation arrested 44-year-old Walter Steven Crosley of Lakehills, TX, for using the Internet to post threats to kill individuals working for the U.S. Department of Veteran Affairs (VA) and to damage or destroy buildings by use of explosives announced United States Attorney Richard L. Durbin, Jr.; FBI Special Agent in Charge Christopher Combs, San Antonio Division; and, Special Agent in Charge James Werner, VA Office of Inspector General (VAOIG), South Central Field Office.

According to court records, Crosley served in the Army for 13 years including time in Iraq in support of Operation Iraqi Freedom.  In 2005, Crosley, a Motor Transport Operator, suffered multiple injuries resulting from an Improvised Explosive Device (IED) detonation.  In 2013, Crosley was permanently retired and received a 100% service-related disability.  He has received periodic treatment for his injuries at the Kerrville VA Medical Center.

A criminal complaint and supporting affidavit filed in federal court today alleges that while visiting the facility on June 7, 2017, Crosley made a statement to a nurse that, “I may be the next guy that takes y’all out.”  The complaint also states that Crosley, who claims to suffer health issues stemming from his service in Iraq and lack of proper treatment by the VA, periodically uploads videos to YouTube under the name of “Retired Warrior.”  In one of the videos, Crosley states that he threatened to blow up the Kerrville VA facility if they did not put him in a war related illness and injury study center.  In his video, he also claimed that he would follow in the footsteps of other individuals suffering from Post-Traumatic Stress Disorder (PTSD), who either committed suicide, killed other individuals or destroyed property. 

Crosley made his initial appearance this afternoon in federal court in San Antonio.  He remains in federal custody pending a detention hearing scheduled for September 21 at 9:30 a.m.  Upon conviction, Crosley faces up to ten years in federal prison.

The FBI and the VAOIG investigated this case.  Assistant United States Attorney Bud Paulissen is prosecuting this case on behalf of the Government.

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

This 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.

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

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.

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.

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.

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.

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.

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.

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.

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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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.

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.