Western District of Texas
Press releases recorded for this federal judicial district.
Statement by United States Attorney Richard L. Durbin, Jr., Relating to November 2016 ElectionsRead the Press Release
United States Attorney Richard L. Durbin, Jr. announced today that Assistant United States Attorney (AUSA) Tom Moore will lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2016, general elections. AUSA Moore has been appointed to serve as the District Election Officer (DEO) for the Western District of Texas, and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
United States Attorney Durbin said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud. The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 8, 2016, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Durbin stated that AUSA/DEO Moore will be on duty in this District while the polls are open. He can be reached by the public at (210) 384-7188.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The San Antonio FBI field office can be reached by the public at (210) 225-6741; the El Paso FBI field office, at (915) 832-5000.
Elections Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
United States Attorney Durbin said, “Ensuring free and fair elections depends on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division.”
Austin Businessman Sentenced to Federal Prison for Mail Fraud, Wire Fraud, Money Laundering, and False Tax ReturnsRead the Press Release
In Austin today, 49-year-old Sean James Hager was sentenced to 42 months in federal prison and ordered to pay more than $1,500,000 in restitution in connection with a scheme to defraud his employer and the Internal Revenue Service, announced United States Attorney Richard L. Durbin, Jr. and Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge William Cotter.
On May 26, 2016, a federal jury found Hager guilty of three counts of assisting the preparation of false tax returns, two counts of mail fraud, two counts of wire fraud, and one count of money laundering. Evidence presented during trial revealed that, during 2008-2011, Hager was employed by Austin-based Velocity Electronics, where he was responsible for purchasing computer parts for resale to Dell. Unbeknownst to Velocity, Hager also operated Echt Electronics, a company through which Hager acquired computer parts and sold them to Velocity at a significant mark up. Evidence presented at trial showed that Hager earned more than $1 million in profits from Echt during 2008-2011. Evidence presented at trial also established that Hager failed to disclose to his tax return preparer the profit he earned through Echt. As a result, Hager’s income tax returns substantially understated his income and the amount of income tax he owed.
Today, United States District Judge Lee Yeakel sentenced Hager to 42 months in prison on each of the mail fraud, wire fraud, and money laundering counts, and 36 months in prison (the statutory maximum) on each of the three tax counts. All of the terms of imprisonment will run concurrently. Judge Yeakel also imposed a one-year term of supervised release on each of the tax counts, and a three-year term of supervised release on each of the other counts, with all of the terms of supervised release to begin upon Hager’s release from prison and run concurrently.
Judge Yeakel also ordered Hager to pay restitution of $1,164,161.92 to Velocity Electronics and restitution of $368,611.33 to the IRS.
“The sum of all parts on Sean Hager’s theft from his employer and cheating on his taxes is simple – guilty on all counts,” said William Cotter, IRS Criminal Investigation Special Agent in Charge. “Taxpayers deserve our vigilance in the investigation and prosecution of those who hide income and evade the payment of their fair share of taxes.”
This case was investigated by IRS-CI. Assistant United States Attorneys Elizabeth Cottingham, Alan Buie, and Daniel Castillo prosecuted this case on behalf of the Government.
Alpine Man Charged with Intentionally Setting U.S. Post Office AblazeRead the Press Release
In Alpine today, federal authorities arrested 59-year-old Karl Henry Peterson for allegedly setting the U.S. Post Office in Alpine ablaze last week announced United States Attorney Richard L. Durbin, Jr. and Inspector in Charge Adrian Gonzalez, U.S. Postal Investigation Service, Houston Division.
A criminal complaint filed today in Alpine charges Peterson with one count of arson involving a federal facility. According to the complaint, Peterson set fire to the U.S. Post Office during the early morning hours on October 20, 2016. As a result, the building suffered extensive damage.
Peterson, who remains in federal custody, will have his initial hearing before U.S. Magistrate Judge David Fannin tomorrow morning at 9:30 at the Federal Courthouse in Alpine. Peterson faces between five and 20 years in federal prison upon conviction.
This case is being investigated by the United States Postal Inspection Service together with the Texas State Fire Marshal’s Office and the Alpine Police Department. Assistant United States Attorney James J. Miller, Jr., is prosecuting this case on behalf of the Government.
A criminal complaint is merely a charge and should not be considered as evidence of guilt. The defendant is considered innocent until proven guilty in a court of law.
Federal Jury in Del Rio Convicts Mexico City Man for Importation of Cocaine and HeroinRead the Press Release
Guillermo Rodriguez-Sanchez, a 42-year-old resident of Mexico City, faces a mandatory minimum sentence of at least ten years and up to life in federal prison after a jury convicted him late yesterday afternoon of importation cocaine and heroin, announced United States Attorney Richard L. Durbin, Jr.; Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden, San Antonio Division; and, Drug Enforcement Administration (DEA) Special Agent in Charge Joseph M. Arabit, Houston Division.
Jurors convicted Rodriguez-Sanchez of one count of importation of cocaine and one count of importation of heroin. According to evidence presented during trial, on March 16, 2016, Rodriguez-Sanchez, a Mexican citizen and resident of Mexico City, attempted to enter the United States of America through the Eagle Pass Port of Entry Number One. CBP officers subsequently discovered four bricks of cocaine and one brick of heroin hidden inside of a secret compartment that was built into the air intake manifold of the 2007 Toyota Tundra the defendant was driving. The total weight of the cocaine was approximately four kilograms; the heroin, approximately 1.4 kilograms. Testimony at trial established that the value of the narcotics was approximately $200,000. At the time of his arrest, Rodriguez-Sanchez denied knowledge of the drugs.
Rodriguez-Sanchez remains in federal custody pending sentencing scheduled for 10:00 am on April 4, 2017, before United States District Judge Alia Moses in Del Rio.
This investigation was conducted by the Homeland Security Investigations (HSI), the United States Customs and Border Protection (CBP) and the Drug Enforcement Administration (DEA). Assistant United States Attorneys Goran Krnaich and Justin Chung are prosecuting this case on behalf of the Government.
Federal Jury Convicts El Paso Man in Connection with Murder-For-Hire PlotRead the Press Release
In El Paso, 41-year-old Samuel Velasco Gurrola faces mandatory life in federal prison after a jury convicted him this afternoon of his role in a murder-for-hire plot announced United States Attorney Richard L. Durbin, Jr., Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez, Drug Enforcement Administration (DEA) Special Agent in Charge Will R. Glaspy, and Federal Bureau of Investigation (FBI) Special Agent in Charge Douglas E. Lindquist.
Jurors convicted Gurrola of three counts of conspiracy to commit murder in a foreign country and four counts of conspiracy to cause foreign travel for murder for hire. According to evidence presented in during trial, in 2008, Velasco Gurrola was married to Ruth Sagredo Escobedo. At the time, Velasco Gurrola was under indictment in El Paso County for aggravated sexual assault of a child and indecency with a child.
Evidence further revealed that from September 2008 until November 2008, the defendant conspired with his brother, 30-year-old Emmanuel Velasco Gurrola and his sister, 44-year-old Dalia Valencia, and others to kill Sagredo while in Mexico in order to prevent her from testifying in the State case.
Testimony revealed that Samuel Velasco Gurrola arranged to have Sagredo’s father and sister killed in an attempt to lure Sagredo to Mexico. On October 3, 2008, Francisco Maria Sagredo Villareal, Gurrola’s father-in-law, was murdered in his house in Ciudad Juarez, Chihuahua, Mexico. On November 20, 2008, Francisco’s daughter, Cinthia Sagredo Escobedo, was murdered in Ciudad Juarez. Two days later, while traveling to her sister Cinthia’s funeral, Ruth Sagredo Escobedo was ambushed and murdered.
Prior to jury selection, Emmanuel Velasco Gurrola pleaded guilty to three counts of conspiracy to kill in a foreign country and one count of conspiracy to violate the Racketeering Influenced Corrupt Organization (RICO) statute; Dalia Valencia pleaded guilty to one count of conspiracy to violate the RICO statute. Emmanuel Velasco Gurrola and Dalia Valencia both face up to life in federal prison. Sentencings are scheduled as follows: Emmanuel Velasco Gurrola – December 6, 2016; Dalia Valencia – December 15, 2016; and, Sammy Velasco Gurrola -- January 25, 2017. All three remain in federal custody pending sentencing.
This investigation was conducted by the Homeland Security Investigations (HSI), Drug Enforcement Administration (DEA), and the Federal Bureau of Investigation with assistance from the United States Marshals Service and the El Paso Police Department. Assistant United States Attorneys Daphne Newaz and John Gibson are prosecuting this case on behalf of the Government.
Former Prison Guard in Del Rio Sentenced to Federal Prison for Sexual Abuse of a WardRead the Press Release
In Del Rio this afternoon, a federal judge sentenced 59–year-old former prison guard Leticia Martinez Garza of Del Rio to 13 months in federal prison followed by three years of supervised release for having sexual intercourse with an inmate announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation (FBI) Special Agent in Charge Christopher Combs, San Antonio Division.
On May 4, 2016, the defendant pleaded guilty to one count of sexual abuse of a ward. By pleading guilty, the defendant admitted that between May 15, 2014, and September 18, 2014, while employed as a Laundry, Property and Supply Supervisor at GEO Corrections Val Verde Correction facility in Del Rio, she had sexual intercourse on multiple occasions with an inmate who was under her custodial, supervisory or disciplinary authority.
The case resulted from a joint investigation by the Federal Bureau of Investigation together with the United States Marshals Service and Homeland Security Investigations (HSI). Assistant United States Attorneys Matthew Watters and Goran Krnaich prosecuted this case on behalf of the Government.
Austin Man Sentenced to Federal Prison for Role in Fentanyl Related DeathsRead the Press Release
In Austin today, 27-year-old Austin resident Sylvester Orlowski was sentenced to 168 months in federal prison for his role in two deaths resulting from a fentanyl overdose in May of this year announced United States Attorney Richard L. Durbin, Jr., and Austin Police Chief Art Acevedo.
In addition to the prison term, United States District Judge Lee Yeakel ordered that Orlowski pay restitutions to the families of both victims to cover funeral expenses; and, be placed on supervised release for a period of five years after completing his prison term.
On August 10, 2016, Orlowski pleaded guilty to one count of possession with intent to distribute fentanyl causing death. By pleading guilty, Orlowski admitted that in May 2016, he sold Fentanyl in powder form to Zane Paduano. Paduano and Clayton Wimberley, subsequently overdosed after ingesting that Fentanyl. Fentanyl, a Schedule II Controlled Substance, is a narcotic analgesic used for pain control and anesthesia. In large or concentrated doses it suppresses the respiratory system and causes death.
On September 1, 2016, Orlowski’s Fentanyl source and co-defendant, 29–year-old Austin resident Albert C. Picazo, III, pleaded guilty to the same charge and is awaiting sentencing scheduled for 9:00am on November 17, 2016, before Judge Yeakel. Picazo, who has remained in custody since both defendants were arrested on May 18, 2016, faces up to life in federal prison.
This case was investigated by the Organized Crime Unit of the Austin Police Department. Assistant United States Attorney Mark Marshall is prosecuting this case on behalf of the Government.
San Antonio Duo Sentenced to Federal Prison for Sex Trafficking of a Minor SchemeRead the Press Release
In San Antonio this morning, 26–year-old Valentin Renko was sentenced to 25 years in federal prison followed by 20 years of supervised release for sex trafficking of a minor announced United States Attorney Richard L. Durbin, Jr., and Special Agent in Charge Christopher Combs of the FBI’s San Antonio Division.
In December 2015, Renko pleaded guilty to the charge. By pleading guilty, Renko admitted that on or about July 1, 2015, he provided and smoked methamphetamine with his co-defendant, 30-year-old Karen Lee, and a 12-year-old female. That minor, who Renko made contact with through a social media website, had been reported missing to the Kirby Police Department in the days leading up to July 1, 2015. Renko and Lee also discussed and planned ways of providing the child victim to adult males for commercial sex. Lee, subsequently, took digital photos of Renko engaged in sexually explicit conduct with the minor female. Lee also insisted the minor female make money in order to continue to reside with Lee and encouraged the victim to make dates with males using a social networking website. During those dates, between July 2 and July 6, 2015, the victim engaged in sexual activity in exchange for U.S. currency and/or narcotics.
On April 25, 2015, Lee was sentenced to 20 years in federal prison after pleading guilty to her role in the sex trafficking of a minor scheme.
This case resulted from a South Texas Officers and Prosecutors Human Trafficking Task Force (STOP HTTF) investigation led by the FBI together with the Texas Department of Public Safety and the Kirby Police Department. Assistant United States Attorney Bettina Richardson prosecuted this case on behalf of the Government.
San Antonio Bandidos Member Pleads Guilty to MurderRead the Press Release
Bandidos Outlaw Motorcycle Organization (OMO) member Frederick Cortez (aka “Fast Fred”), age 48, faces life in federal prison after pleading guilty to murder, announced United States Attorney Richard L. Durbin, Jr., Western District of Texas; Drug Enforcement Administration (DEA) Special Agent in Charge Joseph M. Arabit, Houston Division; 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.
Cortez pleaded guilty before United States Magistrate Judge Pamela A. Mathy in San Antonio this afternoon to Murder in Aid of Racketeering, stemming from the January 2002 retaliation murder of Robert Lara in Atascosa County for killing one of their own. Javier Negrete, a member of the same Bandidos OMO chapter as Cortez, was killed outside a San Antonio bar in October 2001.
Cortez remains in custody pending sentencing scheduled for January 23, 2017, before Senior United States District Judge David A. Ezra.
Bandidos OMO National President Jeffrey Pike, age 61 of Conroe, TX, and National Vice President John Portillo, age 57 of San Antonio, who are also charged in the same indictment, are currently scheduled for trial on August 7, 2017. Portillo remains in federal custody; Pike, on bond, pending trial.
The superseding indictment accuses Pike and Portillo of directing, sanctioning, approving and permitting other members of the organization to carry out racketeering acts including murder, attempted murder, assault, intimidation, extortion and drug trafficking to protect and enhance the organization’s power, territory, reputation and profits.
This ongoing investigation is being conducted by the FBI, DEA and Texas DPS together with the Internal Revenue Service-Criminal Investigation, U.S. Customs and Border Protection, 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.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendants are considered innocent until proven guilty in a court of law.
Bandidos National Sergeant at Arms Pleads Guilty to Federal Racketeering, Drug Trafficking and Extortion ChargesRead the Press Release
In San Antonio, 32-year-old Bandidos Outlaw Motorcycle Organization (OMO) National Sergeant at Arms Justin Cole Forster faces up to life in federal prison after pleading guilty to federal racketeering, drug trafficking and extortion charges announced United States Attorney Richard L. Durbin, Jr., Western District of Texas; Drug Enforcement Administration (DEA) Special Agent in Charge Joseph M. Arabit, Houston Division; 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.
Appearing before United States Magistrate Judge Pamela Mathy today, Forster pleaded guilty to four charges contained in a superseding indictment, namely, count one -- conspiracy to violate the Racketeering Influenced Corrupt Organization (RICO) statute; count three -- conspiracy to commit violent crimes in aid of racketeering (VICAR); count six -- conspiracy to possess with intent to distribute more than 500 grams of methamphetamine and cocaine; and, count ten -- conspiracy to interfere with commerce by extortion. The superseding indictment is attached.
By pleading guilty, Forster, a member of the Bandidos OMO since 2006 and its National Sergeant at Arms since 2011, admitted that he conspired with others to participate in the affairs of the organization through a pattern of racketeering activity consisting of murder, attempted murder, robbery, extortion, interstate travel in aid of racketeering and drug trafficking.
Forster remains in custody pending sentencing scheduled for January 9, 2017, before Senior United States District Judge David A. Ezra in San Antonio.
Bandidos OMO National President Jeffrey Pike, age 61 of Conroe, TX; National Vice President John Portillo, age 57 of San Antonio; and, member Frederick Cortez (aka “Fast Fred”), age 48 of (San Antonio), who are also charged in the same superseding indictment, are currently scheduled for trial on August 7, 2017. While awaiting jury selection, Portillo and Cortez remain in federal custody; Pike is out on bond.
The superseding indictment accuses Pike and Portillo of directing, sanctioning, approving and permitting other members of the organization to carry out racketeering acts including murder, attempted murder, assault, intimidation, extortion and drug trafficking to protect and enhance the organization’s power, territory, reputation and profits. It alleges Portillo and Cortez were involved in the retaliation murder of Robert Lara in Atascosa County for killing one of their own. Javier Negrete, a member of the same Bandidos OMO chapter as Portillo and Cortez, was killed outside a San Antonio bar in October 2001.
This ongoing investigation is being conducted by the FBI, DEA and Texas DPS together with the Internal Revenue Service-Criminal Investigation, U.S. Customs and Border Protection, 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.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendants are considered innocent until proven guilty in a court of law.
Seguin Businessman Sentenced to Federal Prison and Ordered to Pay over $274,000 in Fraudulent S.N.A.P. Benefits SchemeRead the Press Release
In San Antonio this morning, 67-year-old Nasir Ali, manager/owner of J.R. Food Mart in Seguin, TX, was sentenced to one year in federal prison for defrauding the U.S. Department of Agriculture (USDA) Food Stamp Program announced United States Attorney Richard L. Durbin, Jr.
In addition to the prison term, United States District Judge David A. Ezra ordered that Ali pay $274,349.17 restitution and be placed on supervised release for a period of three years after completing his prison term.
On May 23, 2016, Ali pleaded guilty to four wire fraud counts. By pleading guilty, Ali admitted that from November 2009 until March 2013, he fraudulently traded Supplemental Nutrition Assistance Program (SNAP) benefits for prohibited items and cash. At times, Ali would charge the beneficiaries up to double the amount for cash or for ineligible items including tobacco and alcohol.
This case was investigated by agents with the U.S. Department of Agriculture Office of Inspector General together with the Texas Alcoholic Beverage Commission (TABC) and the Seguin Police Department. Assistant United States Attorney Tom Moore prosecuted this case by the Government.
Illinois Furniture Importer and Manager Agree to Pay $1,525,000 to Resolve False Claims Act Allegations Under Civil Settlement with United StatesRead the Press Release
Daniel Scott Goldman and his companies, Ecologic Industries LLC and OMNI SCM LLC will collectively pay $1,525,000 under a civil settlement with the United States Department of Justice, announced United States Attorney Richard L. Durbin, Jr. The settlement resolves a lawsuit brought under the False Claims Act alleging that the companies made or conspired with others to make false statements to avoid paying duties on wooden bedroom furniture imported from the People’s Republic of China.
Ecologic Industries sells furniture for student housing, while OMNI SCM provided procurement and supply chain services and served as importer of record for Ecologic. Goldman controlled both entities through a number of LLCs and trusts. Under the agreement, Goldman will pay a total of $850,000.00, while OMNI and Ecologic together will pay $675,000.00.
“Customs duties are meant to protect domestic companies and American workers from unfair competition from abroad. Those who import goods into the United States must comply with the law,” said U.S. Attorney Richard L. Durbin, Jr.
The government alleged that between February 2012 and December 2014, Ecologic, OMNI and Goldman knowingly misclassified or conspired with others to misclassify wooden bedroom furniture on documents presented to U.S. Customs and Border Protection (CBP) to avoid paying antidumping duties on imports of wooden bedroom furniture manufactured in the People’s Republic of China. Specifically, Goldman and his companies allegedly classified the furniture as office and other types of furniture not subject to duties while selling the furniture in the student housing market for use in dormitory bedrooms. The Department of Commerce assesses, and CBP collects, antidumping duties to protect U.S. businesses by offsetting unfair foreign pricing and foreign government subsidies.
The allegations resolved by the settlement were originally brought by Matthew L. Bissanti, Jr. under the qui tam or whistleblower provisions of the False Claims Act. The act permits private parties to sue on behalf of the United States those who falsely claim federal funds or, as in this case, those who avoid paying funds owed to the government or cause or conspire in such conduct. The act also allows the whistleblower to receive a share of any funds recovered through the lawsuit. Bissanti will receive $228,750.00 as his share of the settlement.
The lawsuit is captioned United States ex rel. Bissanti v. Daniel Scott Goldman, et al., No. A14-CV-00497 (W.D. Tex.). The case was handled by the U.S. Attorney’s Office for the Western District of Texas; Civil Division’s Commercial Litigation Branch; CBP’s Office of Field Operations, Office of Regulatory Audit and Office of Chief Counsel; and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. Assistant United States Attorney Susan Strawn handled the case for the government.
Two Sentenced to Federal Prison for Defrauding El Paso Federal Credit Union Leading to its FailureRead the Press Release
In El Paso, a former El Paso Federal Credit Union (EPFCU) manager and an assistant manager have been sentenced to federal prison for their roles in a scheme to steal millions of dollars from the financial institution which lead to the credit union’s failure announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation Special Agent in Charge Douglas Lindquist, El Paso Division.
This morning, United States District Court Judge Philip Martinez sentenced 53-year-old former EPFCU assistant manager Hilda Simental Mendoza of El Paso to 121 months in federal prison followed by five years of supervised release. In addition to the prison term, Judge Martinez ordered that Mendoza perform 100 hours of community service.
On September 21, 2016, Judge Martinez sentenced 59–year-old former EPFCU manager Maria Guadalupe Hernandez to 188 months in federal prison followed by five years of supervised release. In addition to the prison term, Judge Martinez ordered Hernandez to pay a $10,000 fine.
At sentencing, Judge Martinez ordered both defendants to pay $18,376,542 in restitution to the National Credit Union Administration (NCUA) representing the loss generated by their scheme.
On May 24, 2016, the defendants pleaded guilty to an eleven-count indictment which included charges of bank fraud, wire fraud and conspiracies to commit both bank and wire fraud.
According to court records, beginning in August 2007, the defendants sold more than 100 EPFCU share certificates to other credit unions. The defendants did not record the sale of these share certificates in the credit union records, but kept a log of them is a secret ledger. Monies generated by the unrecorded sales of EPFCU share certificates were placed into accounts created and controlled by the defendants using relatives accounts, dormant customer accounts, and even active accounts belonging to deceased individuals. The defendants used the generated funds from newly sold EPFCU share certificates to pay out dividends to investors and principal payments to prior purchasers of EPFCU share certificates. Hernandez used the monies generated by the EPFCU share certificate sales for personal benefit to included travel, purchase real estate and vacations.
The defendants created fraudulent EPFCU records to conceal their scheme from auditors, but were unsuccessful. In September 2011, an examiner from the NCUA discovered accounting irregularities in the amount of EPFCU’s undivided earnings in that month’s Call Reports. In June 2012, examiners performed a detailed audit of EPFCU records and discovered additional accounting irregularities. During an audit follow-up, examiners discovered a hidden binder inside the credit union which contained an accounting of all of the unrecorded EPFCU share certificates sold by the defendants. On September 28, 2012, the NCUA delivered the liquidation order to EPFCU’s Board of Directors and thereafter, liquidated EPFCU.
This investigation was conducted by the FBI with assistance from the NCUA. Assistant United States Attorney Chris Skillern prosecuted this case on behalf of the Government.
Barrio Azteca Gang Associate Sentenced to 20 Years in Prison for Participating in Racketeering ConspiracyRead the Press Release
A Barrio Azteca (BA) gang associate was sentenced today to 240 months in prison for his participation in a racketeering conspiracy and drug trafficking offenses.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Richard L. Durbin Jr. for the Western District of Texas, Special Agent in Charge Douglas Lindquist of the FBI’s El Paso, Texas, Office and Special Agent in Charge Will Glaspy of the U.S. Drug Enforcement Administration (DEA) El Paso Division made the announcement.
Luis Humberto Hernandez Celis, aka Pac, 32, of El Paso, was sentenced before U.S. District Judge Kathleen Cardone of the Western District of Texas for racketeering conspiracy; conspiracy to distribute and possess with intent to distribute controlled substances; and conspiracy to import heroin, cocaine and marijuana.
According to court documents and information presented in court throughout this case, the BA gang began operating in the late 1980s as a violent prison gang and has expanded into a transnational criminal organization based in West Texas; Juarez, Mexico; and throughout state and federal prisons in the United States and Mexico. The gang relies on a militaristic command structure that includes “captains,” “lieutenants,” “sergeants” and “soldiers” to maintain power and enriches members and associates through drug trafficking, money laundering, extortion, intimidation, violence, threats of violence and murder.
According to court documents, since Jan. 1, 2003, members and associates of the BA have engaged in a host of such criminal activity, including the March 13, 2010, murders in Juarez of U.S. consulate employee Leslie Ann Enriquez Catton, her husband Arthur Redelfs and Jorge Alberto Salcido Ceniceros, the husband of a U.S. consulate employee.
According to admissions made in connection with Hernandez Celis’s plea agreement, BA generates profits by importing heroin, cocaine and marijuana into the United States from Mexico. Hernandez Celis admitted that gang members and associates also allegedly charge a “street tax” or “cuota” on businesses and criminals operating on their turf. These profits are used to support gang members in prison by funneling money into prison commissary accounts of gang leaders and to pay for defense lawyers or fines, and are allegedly reinvested into the organization to purchase drugs, guns and ammunition.
Beginning in or around 2009, Hernandez Celis was an associate of the BA, during which time he used violence or threats of violence to advance BA criminal activities, including stealing cars, managing drug distribution points and collecting cuotas for a BA leader in Juarez, he admitted.
Thirty-five members and associates of the BA gang, including Hernandez Celis, were charged in a third superseding indictment unsealed in March 2011 with various counts of racketeering, murder, drug offenses, money laundering and obstruction of justice. Of the 35 defendants charged, 33 have been apprehended, of whom 25 have pleaded guilty, one has been convicted at trial and one committed suicide while imprisoned during his trial. Hernandez Celis was among three defendants, including Ricardo Valles De La Rosa, aka Chino, and Alberto Nunez Payan, aka Fresa, recently extradited from Mexico. Trial is currently scheduled for Feb. 6, 2017. Three other defendants are pending extradition from Mexico. U.S. and Mexican law enforcement are actively seeking to apprehend the two remaining fugitives in this case: Luis Mendez and Eduardo Ravelo, an FBI Top 10 Most Wanted Fugitive.
The FBI’s El Paso Field Office and Albuquerque Field Office (Las Cruces Resident Agency); DEA Juarez; and DEA El Paso investigated the case. The Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Immigration and Customs Enforcement; U.S. Marshals Service; U.S. Customs and Border Protection; Federal Bureau of Prisons; U.S. Diplomatic Security Service; Texas Department of Public Safety; Texas Department of Criminal Justice; El Paso Police Department; El Paso County Sheriff’s Office; El Paso Independent School District Police Department; Texas Alcohol and Beverage Commission; New Mexico State Police; Dona Ana County, New Mexico, Sheriff’s Office; Las Cruces, New Mexico, Police Department; Southern New Mexico Correctional Facility; and Otero County Prison Facility New Mexico provided special assistance.
Trial Attorney Joseph A. Cooley of the Criminal Division’s Organized Crime and Gang Section, Trial Attorney Jay Bauer of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney John Gibson of the Western District of Texas-El Paso Division are prosecuting the case. The Criminal Division’s Offices of International Affairs and Enforcement Operations provided valuable assistance.
Austin I.S.D. Maintenance Worker and Wife Sentenced to Federal Prison for Undocumented Alien Smuggling SchemeRead the Press Release
In Austin this morning 54-year-old San Juana Valdez Menchaca and her husband, 57-year-old Julian Perez Perez, were sentenced to 70 months and 33 months in federal prison, respectively, for conspiring to smuggle more than 500 undocumented aliens into the United States announced United States Attorney Richard L. Durbin, Jr., Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden in San Antonio, and Austin Police Chief Art Acevedo.
In addition to the prison term, United States District Judge Sam Sparks ordered that the defendants pay a $1.173 million money judgment representing the total amount of criminal proceeds obtained in this case as well as $10,000 in fines ($5,000 for each defendant). Judge Sparks also ordered that the defendants forfeit to the Government their Cedar Creek, TX, residence; approximately $106,390 in cash seized on the day of their arrest; and, approximately $71,000 located in ten bank accounts in an effort to satisfy the money judgment. Judge Sparks also ordered that Valdez Menchaca pay a $2,709 assessment for the cost of her legal representation because she initially told the Court she was indigent. The defendants will also be placed on supervised release for a period of three years after completing their prison terms.
On July 7, 2016, the defendants pleaded guilty to one count of conspiracy to transport undocumented aliens. By pleading guilty, the defendants admitted that for approximately ten years ending in April 2016, they conspired to smuggle and transport undocumented aliens for financial gain. According to court records, the aliens typically crossed into the United States near Laredo, TX, and were transported to the Austin area, before reaching final destinations in Alabama, Kentucky, Virginia, North Carolina, and Florida.
Court records also reflect that the defendants used the U.S. banking system to collect human smuggling fees. Family members of smuggled aliens would go to geographically distant branches of a bank and deposit human smuggling payments directly into “funnel accounts” controlled by the defendants. The defendants retained their portion of the smuggling fees and sent the remainder to co-conspirators in Mexico.
“Homeland Security Investigations special agents often investigate complex financial schemes in order to disrupt and dismantle the operations of transnational criminal organizations,” said Shane Folden, special agent in charge, HSI San Antonio. “These investigations deprive the criminal organizations from enjoying the benefits of the illicit proceeds, and prevent them from furthering the ongoing criminal enterprise. We will continue to aggressively investigate fraudulent financial schemes that put in jeopardy the integrity of our financial system.”
Both defendants were arrested on April 26, 2016. Valdez-Menchaca has remained in federal custody ever since. Perez is currently on bond pending notification of a reporting date by the U.S. Bureau of Prisons.
This investigation was conducted by HSI agents and the Austin Police Department. Assistant United States Attorneys Michael C. Galdo and Daniel M. Castillo prosecuted this case on behalf of the Government.
Interstate Stalker Sentenced to Federal PrisonRead the Press Release
In San Antonio today, 57-year-old Gabriel Robert Caggiano of Los Angeles, CA, was sentenced to 41 months in federal prison for stalking a former employer and his wife who reside in San Antonio announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division.
In addition to the prison term, United States District Judge Xavier Rodriguez also ordered that Caggiano be placed on supervised release for a period of three years after completing his prison term.
On March 31, 2016, Caggiano pleaded guilty to one count of stalking. According to court records, in 2008, Caggiano was employed at a television station in Corpus Christi, TX. Caggiano was ultimately terminated from his employment at the station. By pleading guilty, Caggiano admitted that from March 15, 2015 until August 26, 2015, he repeatedly used voicemails, text messaging, social media and the U.S. Mail to retaliate against his victims. In those communications, Caggiano threatened physical violence against his victims as well as to embarrass, humiliate and cause substantial emotional distress to his victims by destroying the reputation of his former employer and his wife.
Caggiano has remained in custody since November 2015.
This investigation was conducted by the FBI in San Antonio and Los Angeles. Assistant United States Attorney Sarah Wannarka prosecuted this case on behalf of the Government.
Former Commercial Pilot Sentenced to Federal Prison on Stalking ChargeRead the Press Release
In San Antonio today, 62-year-old Mark Joseph Uhlenbrock of Chesterfield, Missouri, was sentenced to 41 months in federal prison followed by three years of supervised release after pleading guilty to internet stalking announced United States Attorney Richard L. Durbin, Jr., and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
Uhlenbrock, who had been on bond pending sentencing, was placed into federal custody during today’s hearing by order of United States District Judge Xavier Rodriguez.
On June 15, 2016, the defendant pleaded guilty to one count of stalking. By pleading guilty, Uhlenbrock admitted that from the end of their romantic relationship in January 2006 to August 2015, he caused substantial emotional distress to his female victim by posting nude photographs of her on the Internet--on MyEx.com and elsewhere--without her consent and despite three Bexar County (TX) civil district court lawsuits.
On August 26, 2015, FBI agents executed a search warrant at the defendant’s residence and seized two laptop computers. An examination of the laptops revealed nude photos of his victim and numerous bookmarks to links where the defendant posted nude photos of his victim.
This case was investigated by the FBI and was prosecuted by Assistant United States Attorney Sarah Wannarka.
Third Defendant Captured in New Orleans Overnight in Connection with Racketeering Schemes that Involved the Attempted Capital Murder of State District Court Judge Julie KocurekRead the Press Release
Shortly before midnight, federal and state authorities arrested 26-year-old Marcellus Antoine Burgin of Cypress, TX, without incident in New Orleans, LA. Burgin, 28-year-old Chimene Hamilton Onyeri of Houston, and 24-year-old Rasul Kareem Scott of Marrera, LA, are all charged in a federal grand jury indictment unsealed in Austin on Friday for their roles in fraud and racketeering schemes that involved the attempted capital murder of State District Court Judge Julie Kocurek in November of last year.
On September 22, 2016, Burgin led federal agents on a car chase in Southwest Houston that resulted in a car accident and a foot chase. Burgin was able to escape apprehension that day and has been a fugitive ever since.
Burgin is expected to have his initial appearance today in New Orleans. Scott remains in federal custody in Louisiana. Both are expected to be transferred to the Austin Division of the Western District of Texas for yet-to-be-scheduled court proceedings. Onyeri remains in federal custody pending his detention hearing set for 9:00am on October 6, 2016, before United States Magistrate Judge Mark Lane in Austin.
The indictment alleges that from January 2012 to November 2015, Onyeri and others carried out various fraudulent schemes for financial gain in Austin, Houston, the state of Louisiana and surrounding areas. The racketeering enterprise is alleged to have engaged in mail fraud, bribery of a public official, wire fraud, document fraud, access device fraud and money laundering as well as offenses involving murder.
According to the indictment, when the existence of the criminal enterprise was threatened, the defendants responded with violence. The indictment alleges that on the night of November 6, 2015, the defendants attempted to murder State District Court Judge Julie Kocurek, whom Onyeri believed was going to sentence him to prison, by shooting Judge Kocurek while she sat in her car outside her home in Austin. As a result of the incident, Kocurek suffered serious bodily injury from multiple gunshots and resulting shrapnel.
This case is being investigated by the FBI, IRS-Criminal Investigation, U.S. Postal Inspection Service, United States Secret Service, Austin Police Department and the Travis County District Attorney’s Office. The 14th Judicial District Attorney’s Office in (Calcasieu Parish) Lake Charles, Louisiana; Fort Bend County District Attorney’s Office; United States Attorney’s Offices for the Southern District of Texas and the Eastern District of Louisiana; the United States Marshals Service; Travis County Sheriff’s Office; and, the Houston Police Department have also provided valuable assistance during this investigation. Assistant U.S. Attorney Gregg N. Sofer and Special Assistant U.S. Attorney Dayna Blazey are prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are considered innocent until proven guilty in a court of law.
Federal Grand Jury in Austin Indicts Three on Racketeering and Fraud Charges in Connection with the Attempted Capital Murder of State District Court Judge Julie KocurekRead the Press Release
A federal grand jury in Austin has indicted three individuals, including 28-year-old Chimene Hamilton Onyeri of Houston, for their roles in fraud and racketeering schemes that involved the attempted capital murder of State District Court Judge Julie Kocurek in November of last year.
That announcement was made today by United States Attorney Richard L. Durbin, Jr.; 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; Austin Police Chief Art Acevedo; Travis County Criminal District Attorney Rosemary Lehmberg; United States Postal Inspection Service (USPIS) Inspector in Charge Adrian Gonzalez, Houston Division; and, U.S. Secret Service Special Agent in Charge Cynthia Marble, Houston Division.
An 11-count indictment, unsealed in Austin today, charges Onyeri, 26-year-old Marcellus Antoine Burgin of Cypress, TX and 24-year-old Rasul Kareem Scott of Marrera, LA, with one count of conspiracy to participate in an enterprise engaged in a pattern of racketeering activity; one count of conspiracy to commit wire fraud; and, one count of aggravated identity theft. Onyeri is also charged with conspiracy to commit mail fraud; an additional count of conspiracy to commit wire fraud; and, six additional counts of aggravated identity theft.
The indictment alleges that from January 2012 to November 2015, Onyeri and others carried out various fraudulent schemes for financial gain in Austin, Houston, the state of Louisiana and surrounding areas. The racketeering enterprise is alleged to have engaged in mail fraud, bribery of a public official, wire fraud, document fraud, access device fraud and money laundering as well as offenses involving murder.
According to the indictment, the defendants carried out a wire fraud scheme whereby they used debit card readers, or “skimmers,” and cameras placed on ATMs to steal personal identification information (PII) from, and identify PIN #’s used by, unsuspecting individuals. The defendants then used the stolen PII and debit card PIN #’s to “cash out,” or deplete, those bank accounts.
The indictment also alleges that from December 2011 to November 2013, Onyeri and others carried out a credit card skimming scheme whereby they captured unsuspecting individuals’ credit card information at various restaurants and retail stores. They would then transfer the stolen information onto gift cards and subsequently use those gift cards to purchase retail items or money orders which could then be sold or converted to cash.
The indictment further alleges that Onyeri and others were involved in a Stolen Identity Refund Fraud (SIRF) scheme. Onyeri and others used stolen PII to create and file fraudulent income tax returns seeking refunds. Once the refund checks were mailed, Onyeri and others would use the checks to open up bank accounts and then access the fraudulently obtained funds through cash or ATM withdrawals. The indictment also alleges that Onyeri bribed bank employees to create false bank accounts to facilitate access to the funds and agreed to pay $1,500 to an individual who he believed was a U.S. Postal Letter Carrier in exchange for intercepting mailed income tax refund checks.
According to the indictment, when the existence of the criminal enterprise was threatened, the defendants responded with violence. The indictment alleges that on the night of November 6, 2015, the defendants attempted to murder State District Court Judge Julie Kocurek, whom Onyeri believed was going to sentence him to prison, by shooting Judge Kocurek while she sat in her car outside her home in Austin. As a result of the incident, Kocurek suffered serious bodily injury from multiple gunshots and resulting shrapnel.
“This multi-agency investigation uncovered a diabolical scheme that went from multi-faceted fraud to an attempt on the life of a State judicial officer,” stated United States Attorney Richard L. Durbin, Jr. “I commend the extraordinary efforts of Assistant U.S. Attorney Gregg N. Sofer, Special Assistant U.S. Attorney Dayna Blazey, and the agents of the Internal Revenue Service-Criminal Investigation, Federal Bureau of Investigation, U.S. Postal Inspection Service, Austin Police Department and the U.S. Secret Service who brought this case to indictment.”
“A violent attack against a judge doesn't just threaten our justice system; it's an assault to the bedrock of our democracy which upholds the laws protecting our freedom. This case should send a strong message to those who threaten or harm members of our judiciary; the FBI will work day and night, with our law enforcement partners, to ensure they are held accountable for their actions,” stated FBI Special Agent in Charge Christopher Combs.
“Once again, this investigation proves that greed knows no bounds,” said William J. Cotter, IRS-CI Special Agent in Charge for the San Antonio Field Office. “What began as a seemingly small financial crime grew into an organization willing to use violent acts to shield their financial fraud schemes from discovery. IRS-CI Special Agents used financial tracing techniques to assist in unraveling the complex web of violence and fraud."
“The Postal Inspection Service has sought for hundreds of years those who use the Postal Service for illegal gain,” said U. S. Postal Inspection Service Inspector in Charge Adrian Gonzalez. “This investigation was an excellent example of a partnership between law enforcement agencies working together to bring down this fraud conspiracy. I fully commend the hard work and countless hours put forth which resulted in bringing these individuals to justice.”
Upon conviction, the defendants face up to life in federal prison for the RICO conspiracy charge; up to 20 years in federal prison for conspiracy to commit mail or wire fraud charge; and, a mandatory two years in federal prison for each aggravated identity theft charge.
Yesterday, authorities arrested Scott in New Orleans. Scott remains in federal custody pending transfer to the Western District of Texas. Burgin remains a fugitive and should be considered armed and dangerous. Crime Stoppers of Houston is offering up to $5,000 for information leading to the arrest of Burgin. If you have information about him or his whereabouts, please call the Crime Stoppers tip line at 713-222-TIPS (8477) or the FBI San Antonio Field Office at 210-225-6741. Tips may also be submitted to the FBI online at https://tips.fbi.gov/. Onyeri has remained in custody since his arrest on May 18, 2016, on unrelated state charges.
“In coordination with federal authorities, and as a result of the overlapping issues presented in these prosecutions, Dayna Blazey, a Travis County Assistant District Attorney, has been cross-designated as a Special Assistant United States Attorney in order to assist with the federal prosecution of this important case. This office will continue to work with federal authorities until all prosecutions are concluded,” stated Travis County District Attorney Rosemary Lehmberg.
This case is being investigated by the FBI, IRS-Criminal Investigation, U.S. Postal Inspection Service, United States Secret Service, Austin Police Department and the Travis County Criminal District Attorney’s Office. The 14th Judicial District Attorney’s Office in (Calcasieu Parish) Lake Charles, Louisiana; Fort Bend County District Attorney’s Office; United States Attorney’s Offices for the Southern District of Texas and the Eastern District of Louisiana; the United States Marshals Service; Travis County Sheriff’s Office; and, the Houston Police Department have also provided valuable assistance during this investigation. Assistant United States Attorney Gregg N. Sofer and Special Assistant United States Attorney Dayna Blazey are prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are considered innocent until proven guilty in a court of law.
Jury in Del Rio Convicts Man in Firearms Smuggling OperationRead the Press Release
In Del Rio, a jury convicted 48–year-old ringleader Eduardo Hinojosa (aka “Lalo”), a U.S. Citizen residing in Piedras Negras, Mexico, of attempting to smuggle firearms and an assortment of ammunition from the U.S. into Mexico announced United States Attorney Richard L. Durbin, Jr., and Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden.
Returning their verdict late yesterday afternoon following a three-day trial, jurors convicted Hinojosa of four counts of aiding and abetting the smuggling of goods from the U.S. and one count of providing a firearm to a prohibited person. Evidence presented at trial revealed that Hinojosa and three Mexican citizens residing in Piedras Negras were involved in a firearms smuggling scheme for profit. Prior to jury selection, Hinojosa’s co-defendants 43-year-old Carlos Mendoza-Hernandez (aka “Pepo”) and 26–year-old Gily Ajin-Cordova pleaded guilty to one count of possession of a firearm by a prohibited person; and, 25-year-old Elizabeth Cervantes-Mateos pleaded guilty to one count of aiding and abetting the smuggling of goods from the U.S.
According to testimony and court records, on April 7, 2015, investigators observed Hinojosa loading ammunition and firearms into a vehicle at an Eagle Pass business owned by Mendoza’s family. Authorities subsequently seized a .243 caliber rifle, a 12-gauge shotgun and approximately 1,000 rounds of ammunition in various calibers from inside that vehicle. At the time of the seizure, authorities arrested the vehicle’s occupants--Cervantes and Ajin. Agents later observed defendants Hinojosa and Mendez unloading boxes into a storage facility in Eagle Pass. Subsequently, authorities arrested Hinojosa and Mendez and a consensual search of that storage facility revealed approximately 750 rounds of shotgun shells. Testimony also revealed that the defendants were aware that the firearms and ammunition were ultimately destined for Mexico and that the defendants were aware that it is unlawful to export those items without a license.
All four defendants have remained in federal custody since their arrest on April 7, 2015.
Each charge upon conviction calls for up to ten years in federal prison. Sentencings before U.S. District Judge Alia Moses in Del Rio are scheduled as follows: Cervantes – 2:00pm on December 8, 2016; Mendoza – 11:00am on December 12, 2016; Ajin – 11:00am on February 1, 2017; and, Hinojosa – 2:00pm on March 20, 2017.
The case was investigated by Homeland Security Investigations with assistance from U.S. Customs and Border Protection; Bureau of Alcohol, Tobacco, Firearms and Explosives; and, the Maverick County Sheriff’s Office. Assistant U.S. Attorneys Lewis Thomas and Dan Lee are prosecuting this case on behalf of the Government.
Federal Jury Convicts El Paso Attorney Marco Delgado in Connection with a Multi-Million Dollar Fraud / Money Laundering SchemeRead the Press Release
In El Paso, a federal jury has convicted 50-year-old El Paso attorney Marco Antonio Delgado (aka Marco Delgado Licon) 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.
Yesterday afternoon, 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 Comision 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.
Delgado faces up 20 years in federal prison for each of the wire fraud and money laundering counts. He faces up to ten years in federal prison on each of the remaining counts. Delgado also faces criminal forfeiture by the Government of proceeds traceable to his illegal scheme, including the defendant’s residence and furnishings in El Paso and condominium in Taos, NM. He has remained in federal custody since his arrest in November 2012. No sentencing date has been scheduled.
This investigation was conducted by Homeland Security Investigations (HSI). Assistant United States Attorneys Debra Kanof, Anna Arreola and Jose Luis Gonzalez are prosecuting this case on behalf of the Government.
Methamphetamine Trafficker in San Antonio Sentenced to More Than 21 Years in Federal PrisonRead the Press Release
In San Antonio yesterday, 60-year-old Elias Mejia, a citizen of Mexico, was sentenced to 262 months in federal prison for trafficking in methamphetamine announced United States Attorney Richard L. Durbin, Jr., Drug Enforcement Administration Special Agent in Charge Joseph M. Arabit, Houston Division, and Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden, San Antonio.
On March 9, 2016, Mejia pleaded guilty to one count of conspiracy to possess with intent to distribute methamphetamine. By pleading guilty, Mejia admitted that from October 2, 2014, until November 5, 2015, he was responsible for the trafficking and distribution of approximately 34.5 kilograms of “crystal” methamphetamine in the San Antonio area.
Mejia was arrested on November 5, 2014, in San Antonio and has remained in federal custody since.
“Today’s sentence highlights the success agencies can achieve and the impact they can have when they bring their resources together. DEA will continue to work together with our law enforcement partners and pursue those who threaten our communities through the smuggling and distribution of illegal and dangerous drugs,” stated DEA Special Agent in Charge Joseph M. Arabit.
“The sentencing of Mejia, to a total of 262 months in federal prison, sends a clear message of the serious consequences awaiting those who engage criminal activity,” said Special Agent in Charge, Shane Folden, HSI San Antonio. “HSI will continue to utilize its broad authorities, in concert with its federal, state and local partners, to bring to justice those who blatantly ignore the laws of this nation.”
The case resulted from an investigation by the High Intensity Drug Trafficking Area (HITDA) Task Force led by the DEA and HSI. This case was prosecuted by Assistant United States Attorneys Charlie Strauss and Matthew Lathrop.
San Antonio Man Pleads Guilty to Aiming Laser Pointer at Local News HelicopterRead the Press Release
Christopher B. Evans, age 25, faces up to five years in federal prison after admitting to pointing a laser in the flight path of a helicopter last year announced United States Attorney Richard L. Durbin, Jr., and FBI Special Agent in Charge Christopher B. Combs, San Antonio Division.
Appearing before United States Magistrate Judge John W. Primomo in San Antonio this afternoon, Evans pleaded guilty to one count of aiming a laser pointer at an aircraft in flight. By pleading guilty, Evans admitted that on October 27, 2015, he aimed the beam of a laser pointer at a local television news helicopter as it was flying north of the San Antonio International Airport.
Evans remains on a $20,000 bond pending sentencing scheduled for 9:00am on December 12, 2016, before Senior United States District Judge David A. Ezra.
According to the FBI, in 2015, San Antonio ranked among the top 15 cities in the nation for laser strikes, with almost 100 reported. Laser strikes can blind pilots of airborne aircraft, jeopardizing the lives of persons aboard.
If you have information about a lasing incident, contact the San Antonio FBI at 210-225-6741. If you see someone pointing a laser at an aircraft, call the nearest local law enforcement agency immediately by dialing 911. Tips can also be submitted online at https://tips.fbi.gov.
This investigation was conducted by agents with the Federal Bureau of Investigation together with the San Antonio Police Department. Assistant United States Attorney Michael R. Hardy is prosecuting this case on behalf of the Government.
San Antonio Doctor Sentenced to Federal Prison for Failure to Pay Withholding Taxes and Tax EvasionRead the Press Release
In San Antonio this morning, 60-year old Anthony P. Sertich, Jr., was sentenced to 41 months in federal prison and ordered to pay more than $2.9 million in restitution to the Internal Revenue Service announced United States Attorney Richard L. Durbin, Jr., and IRS-Criminal Investigation Special Agent in Charge William Cotter.
On March 2, 2016, a federal jury convicted Sertich of ten counts of failure to truthfully account for and pay withholding taxes and one count of tax evasion. According to court documents, Sertich was a medical doctor who was the Member, Director and President of Advanced Artistic Facial Plastic Surgery of Texas, PA (AAFPST) and South Texas Otorhinolaryngology, PA (STO). During the calendar years 2008 through 2010, Sertich failed to pay over $226,000.78 to the IRS in payroll taxes withheld from AAFPST’s employees’ paychecks.
In addition, Sertich was found guilty of tax evasion. Between 2002 and 2010, Sertich accrued $2,927,366.45 in unpaid payroll taxes penalties and interest for AAFPST and STO. Sertich evaded paying the taxes by withholding and keeping money, which should have been paid to the IRS, and by repeatedly filing bankruptcy to take unfair advantage of the automatic stay of creditors.
Instead of paying the payroll taxes, Sertich paid himself millions of dollars in salary, which in turn paid for personal expenses such as a large mortgage and interest payments, real estate tax payments and alimony payments. Sertich also filed four personal and one corporate bankruptcy petitions, all but one of which was subsequently dismissed by the court.
“Dr. Anthony P. Sertich, Jr., deliberately evaded paying federal payroll taxes for over eight years, cheating the tax system, his employees, and ultimately, all other taxpayers,” stated United States Attorney Richard L. Durbin, Jr. “He withheld money from his employees’ pay, which he applied to his own use. Then, he abused the bankruptcy process to defeat possible collection efforts.”
“IRS-Criminal Investigation realizes the detrimental consequences of employment tax evasion. It results in the loss of tax revenue to the United States government and the potential loss of future social security or Medicare benefits for the employees,” stated Special Agent in Charge William Cotter of IRS-Criminal Investigation, San Antonio. “Employers, such as Dr. Anthony P. Sertich Jr., who do not remit withheld employment taxes to the IRS are not only enriching themselves, they are creating financial problems for their employees.
This case was investigated by IRS-Criminal Investigation and prosecuted by Assistant United States Attorney William R. Harris.
Gameday Entertainment Chairman of the Board Charged with Defrauding San Antonio Victim of MillionsRead the Press Release
This morning in San Antonio, Federal Bureau of Investigation special agents arrested Charles Augustus Banks, IV, an executive with Gameday Entertainment, LLC (Gameday), on federal wire fraud charges alleging that he defrauded a San Antonio victim of millions of dollars announced United States Attorney Richard Durbin, Jr., and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
A federal grand jury indictment unsealed today in San Antonio charges the 49–year-old investment counselor and venture capitalist with two counts of wire fraud. According to the indictment, Banks encouraged the victim to loan $7.5 million to Gameday in 2012. Subsequently, Banks encouraged the victim to personally guarantee another $6 million loan made to Gameday by Comerica Bank in 2013. During this time frame, Banks was Chairman of the Board of Gameday and personally benefitted, in the form of millions of dollars in loans and commissions, from the proceeds of these loans made to Gameday. Banks manipulated the victim into guaranteeing Gameday’s $6 million debt by misrepresenting the true nature of the transaction. Further, Banks failed to fully disclose the commissions, payments and loans he was receiving from Gameday that were specifically tied to these transactions.
In carrying out his scheme to defraud, the indictment specifically alleges that on June 7, 2013, Banks caused two unsigned signature pages to be faxed from California to the victim in Florida relating to a $6M loan guarantee and subordination agreements, then caused the signed signature pages to be faxed from San Antonio back to Banks’ employees and Comerica bank employees on June 26, 2013.
Banks faces up to 20 years in federal prison upon conviction of each wire fraud charge. Banks was released on bond following his initial appearance before U.S. Magistrate Judge John Primomo in San Antonio today.
This investigation is being conducted by the FBI. Assistant United States Attorney Gregory J. Surovic 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 defendant is presumed innocent until proven guilty in a court of law.
Former Supervisory Customs and Border Protection Officer Sentenced to Federal Prison in Alien Smuggling ConspiracyRead the Press Release
In El Paso today, Lawrence Madrid, a 54–year-old former Supervisory Customs and Border Protection Officer, was sentenced to 90 months in federal prison followed by three years of supervised release for alien smuggling and accepting a bribe announced United States Attorney Richard L. Durbin, Jr., Homeland Security Investigations (HSI) Assistant Special Agent in Charge Stephen C. Adaway, (ASAC) Las Cruces; and, Department of Homeland Security-Office of Inspector General Investigations Special Agent in Charge Javy Pedroza.
On May 26, 2016, a federal jury in El Paso found Madrid guilty of conspiracy to commit alien smuggling for financial gain, aiding and abetting alien smuggling for financial gain, and two substantive counts of accepting a bribe.
According to court records, from August 2010 to September 2011, Madrid conspired with others to encourage/induce undocumented aliens to come to, enter, and reside in the United States without proper authorization. As his part of the conspiracy, Lawrence Madrid accepted money for using his official position to allow undocumented aliens to be smuggled through the ports of entry in El Paso. In addition, the federal jury found that on two separate occasions Madrid accepted money to allow an undocumented alien to enter the United States without proper authorization through the pedestrian lanes of a port of entry.
An arrest warrant is in effect for Madrid’s 39-year-old wife, Odet. She failed to appear for trial and is considered a fugitive. Her $10,000 appearance bond has been forfeited to the Government. Odet Madrid-Corchado is charged with conspiracy to commit alien smuggling for financial gain, one substantive count of alien smuggling for financial gain and one count of bribery of a public official. Upon conviction, Odet Madrid-Corchado faces not more than ten years imprisonment on the conspiracy charge, between three and ten years imprisonment for the substantive alien smuggling charge, and not more than 15 years imprisonment for the bribery charge.
A third defendant in this case, 46-year-old undocumented alien Maria Guadalupe Jaime-Hernandez, is also considered a fugitive after failing to appear for sentencing earlier this month. On May 5, 2016, Jaime-Hernandez pleaded guilty to one count of conspiracy to commit alien smuggling for financial gain. Her $10,000 appearance bond has been forfeited to the Government and a warrant has been issued for her arrest.
This case was investigated by the Homeland Security Investigations (HSI) Las Cruces Office together with the Department of Homeland Security-Office of Inspector General Investigations. Assistant United States Attorneys Greg McDonald and Robert Almonte prosecuted this case on behalf of the Government.
Former Temple Police Officer Arrested for Revealing an Ongoing InvestigationRead the Press Release
This morning, FBI agents arrested 24–year-old former Temple police officer Erick French for allegedly revealing an ongoing investigation announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation Special Agent in Charge Christopher B. Combs, San Antonio Division.
A two-count federal grand jury indictment returned in Austin and unsealed today charges the Copperas Cove, TX, resident with making false statements to federal investigators. According to the indictment, on March 16, 2016, and again on March 21, 2016, French allegedly provided false information to FBI agents in an attempt to hide the fact that he had previously sent a text message alerting an individual to an ongoing investigation being conducted by the Temple Police Department’s Special Investigations Unit.
Upon conviction of each false statement charge, French faces up to five years in federal prison and a maximum $250,000 fine.
French was released on a $25,000 bond following his initial appearance in Waco this morning before United States Magistrate Judge Jeffrey Manske. French is scheduled for arraignment in Austin at 11:00am on September 19, 2016, before United States Magistrate Judge Andrew Austin.
This indictment resulted from an investigation conducted by the FBI, Drug Enforcement Administration (DEA) and the Temple Police Department.
“San Antonio FBI would like to thank DEA and Temple Police Department for their extraordinary contributions in this joint investigation. By identifying and bringing this matter to the FBI's attention, the Temple Police Department has demonstrated high standards for integrity and accountability within its department,” stated FBI Special Agent in Charge Christopher Combs.
Assistant United States Attorney Dan Guess 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 defendant is presumed innocent until proven guilty in a court of law.
Former State Employee Sentenced to Federal Prison in Fraudulent Drivers License SchemeRead the Press Release
In San Antonio today, 54-year-old Jose A. Ytuarte, a former Texas Department of Public Safety Customer Service Representative in Hondo, TX, was sentenced to 18 months in federal prison followed by two years of supervised release for his role in a scheme to provide fraudulent drivers’ licenses to undocumented aliens announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation (FBI) Special Agent in Charge Christopher Combs, San Antonio Division.
On March 31, 2016, Ytuarte pleaded guilty to one count of use of interstate communication facility in aid of unlawful activity--bribery. By pleading guilty, Ytuarte admitted that from May 2013 to July 2015, he accepted cash bribes from a co-conspirator in exchange for inputting materially fraudulent information, namely that the individual was born in the United States, into the DPS computer system in order to process and issue a driver’s license to an undocumented alien.
Ytuarte’s co-defendant, 45-year-old Azeez Mistry of San Antonio, is charged in the conspiracy count. He is also charged with three counts of transfer of false identification documents and one count of use of an interstate communication facility in aid of unlawful activity--bribery. According to the indictment in this case, Mistry would direct undocumented and documented aliens who could not get a driver’s license legally to Ytuarte. Mistry would charge between $1,000 and $5,000 for each license and then pay a portion of that fee to Ytuarte as a cash bribe.
Ytuarte remains on bond pending notification of facility designation by the U.S. Bureau of Prisons. Mistry, who is currently on bond, is scheduled for a re-arraignment hearing on Monday at 2:00pm before United States Magistrate Judge John W. Primomo.
This case was investigated by the FBI, Texas Rangers and U.S. Customs and Border Protection. Assistant United States Attorney Christina Playton is prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. Mistry is presumed innocent until proven guilty in a court of law.
Federal Authorities Announce Closure Without Prosecution of San Antonio Civil Rights Investigation Involving the Arrest of Rogelio CarlosRead the Press Release
U.S. Attorney Richard L. Durbin, Jr., announced today that after a lengthy and comprehensive investigation, the U.S. Attorney’s Office, together with the Civil Rights Division of the Department of Justice, and the Federal Bureau of Investigation have concluded that there is not sufficient evidence to prosecute San Antonio Police Officers based on the arrest of Rogelio Carlos in May 2014. The investigation did not develop sufficient evidence to prove beyond a reasonable doubt that police officers knowingly and willfully used excessive force to deprive Mr. Carlos of his civil rights. The investigation has been closed.
Ecuadorian Couple Sentenced to Federal Prison in Connection with an Alien Smuggling ConspiracyRead the Press Release
In El Paso today, a federal judge sentenced an Ecuadorian couple to federal prison for their roles in an undocumented alien smuggling conspiracy announced United States Attorney Richard L. Durbin, Jr., and Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez, El Paso Division.
United States District Judge Kathleen Cardone sentenced 40–year-old Paul Esteban Estrella Villota of Cuenca, Ecuador, and his 42-year-old wife Magaly Alemania Malagon Sandoya, to six years and five years in federal prison, respectively. Judge Cardone also ordered both defendants to pay a $5,000 special assessment and be placed on supervised release for a period of three years following the completion of their prison terms. Judge Cardone also ordered that Estrella pay a $2,500 fine. Earlier this year, both defendants pleaded guilty to one count of conspiracy to commit alien smuggling for financial gain resulting in bodily injury. Estrella and Malagon have remained in federal custody since being arrested in Orlando, FL, on August 12, 2015.
The investigation into this smuggling organization began on November 4, 2013, after HSI El Paso special agents encountered two male juveniles in a suspected stash house. According to court documents, agents learned that Estrella and Malagon were the ring leaders of an alien smuggling organization that smuggled the juveniles into the United States.
The investigated revealed that on November 22, 2012, 25-year-old co-defendant Diana Marcial smuggled a two-year-old El Salvadoran child through the Bridge of the Americas (BOTA) Port of Entry (POE) as an identity imposter. Marcial used her own child's birth certificate to facilitate the smuggling. When that two-year-old’s mother, Wendy Heredia-Mejia, was herself arrested attempting to enter through the BOTA POE as an identity imposter, Heredia-Mejia identified Marcial as the individual who had crossed with her son. Marcial was contacted by HSI agents and returned the two-year-old child to law enforcement agents.
As a result of the above, Diana Marcial was convicted of making a false statement to authorities about the legal status of the child she brought into the United States. She was sentenced to one year probation and six months home confinement.
On November 6, 2013, 35-year-old Zandra Liduvina Llivichuzhca Murillo, the mother of one of the juveniles discovered by HSI El Paso agents two days prior, was arrested at Paso Del Norte (PDN) POE after she tried to enter the United States as a document imposter. The entry document she presented at the border was valid, but was in the name of another person. Arnulfo Delgado Salas, a 46-year-old co-defendant, was the driver of the vehicle carrying Llivichuzhca into the United States at the PDN POE. Salas, who was later arrested, was scheduled to plead guilty in May 2016 to one count of making a false statement, but absconded prior to his re-arraignment hearing. Salas is considered a fugitive.
Court records show that the man who arranged for Llivichuzhca and her child to be smuggled into the United States was a man she met in Ecuador. The man, whom she knew as “Paul,” charged her $15,000 each to smuggle her and her child. She paid him $6,000 up front. The woman positively identified Estrella as the man to whom she paid the smuggling fee. On March 28, 2014, Llivichuzhca was sentenced to timed served (just over 5 months incarceration) after pleading guilty to one count of false impersonation in an immigration matter.
On November 16, 2014, United States Customs and Border Protection’s (CBP) Office of Border Patrol (OBP) agents encountered another national of Ecuador near Mount Cristo Rey in Sunland Park, NM. During an interview with HSI special agents, that individual identified Estrella and Malagon as the smugglers with whom he entered into a smuggling agreement to bring his daughter into the United States. Court records show he agreed to pay them $14,000.
On March 16, 2014, Border Patrol agents arrested another national of Ecuador near Clint, TX, after she illegally entered into the United States. Court records allege she told HSI special agents that a woman by the name of “Magi” arranged her smuggling travels from Ecuador to the United States, even though an Ecuadorian smuggler named “Paul” originally was to bring her to the United States. Furthermore, the young girl’s father told HSI special agents on February 25, 2015, that he made arrangements to pay $14,500 to a smuggler he knew only as “Magi” to smuggle his daughter from Ecuador through Mexico into the United States. While in Ciudad Juarez, Mexico, the young lady was kept in stash house by Estrella and Malagon’s co-conspirators. At that stash house, these co-conspirators repeatedly raped her before dropping her off in Mexico immediately south of Clint, TX.
Waldemar Rodriguez, special agent in charge of HSI El Paso, credited the team effort of other Department of Homeland Security (DHS) agencies locally and abroad that participated in the investigation. “HSI will not relent against human smugglers who treat people like a mere commodity,” said Rodriguez. “This case should resonate loud and clear: HSI special agents and our law enforcement partners will work tirelessly to identify, arrest and prosecute those responsible for the illegal movement of people into and through our country.”
Assistant United States Attorney Ian Hanna prosecuted this case on behalf of the Government.
Eagle Pass Brothers Sentenced to Federal Prison for Cocaine DistributionRead the Press Release
In Del Rio this afternoon, a federal judge sentenced two brothers, owners and operators of the Real Street Paint and Body Shop in Eagle Pass, to federal prison for distributing approximately six kilograms of cocaine in the Eagle Pass area announced United States Attorney Richard L. Durbin, Jr., Federal Bureau of Investigation (FBI) Special Agent in Charge Christopher Combs, San Antonio Division, Drug Enforcement Administration (DEA) Special Agent in Charge Joseph M. Arabit, Houston Division, and Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden, San Antonio.
United States District Judge Alia Moses handed down a 216-month-federal-prison sentence to 37–year-old Xavier Cardona. Judge Moses handed down the same prison sentence to his 33-year-old brother, Michael Cardona. In addition to the prison terms, Judge Moses ordered that the defendants pay a $372,320 money judgment and be placed on supervised release for a period of five years after completing their prison terms.
On October 23, 2015, jurors found the defendants of conspiracy to possess with intent to distribute over 500 grams of cocaine. They also found Michael Cardona guilty of possession with intent to distribute less than 500 grams of cocaine.
Evidence presented in trial revealed that from January 2009 until April 2014, the Cardonas used Real Street Paint and Body Shop and Michael’s residence to sell cocaine and launder drug proceeds. The Cardona brothers used the proceeds from their cocaine distribution to fuel their lifestyle of custom built modified cars that they showed at various car shows in Texas and to buy and remodel homes. During recorded phone calls played at trial, Michael Cardona stated that he provided cocaine to other dealers already packaged and cut so that it would move more quickly. Testimony and evidence showed that the Cardonas also employed firearms in their drug trafficking business. A search of the residences of both brothers resulted in the seizure of $162,795 in currency, approximately 160 packages of cocaine ready for distribution and five weapons.
Both defendants have remained in federal custody since their arrests on April 23, 2014.
The case resulted from a joint investigation by the Federal Bureau of Investigation, the Drug Enforcement Administration, Homeland Security Investigations and United States Border Patrol. Also assisting in the investigation was the Texas Department of Public Safety - Criminal Investigations Division. Assistant United States Attorneys Ralph Paradiso, Lewis Thomas and Diana Cruz-Zapata prosecuted this case on behalf of the Government.
Mexican Businessowner Sentenced to 16 Years in Federal Prison for Estimated $3 Million Stolen Identity Tax Refund Fraud SchemeRead the Press Release
In El Paso today, 44-year-old Elizabeth “Betty” Garcia de Nieto of Delicias, Chihuahua, Mexico, was sentenced to 16 years in federal prison and ordered to pay $3,009,999.80 restitution to the Government for her role in an income tax return scheme that resulted in fraudulent refunds being issued by the Internal Revenue Service (IRS) announced United States Attorney Richard L. Durbin, Jr., and IRS-Criminal Investigation (IRS-CI) Special Agent in Charge William Cotter.
“Garcia filed false and fraudulent tax returns to steal millions from the IRS, and ultimately, from American taxpayers. If she thought she was beyond the reach of U.S. justice, today’s sentence proves she thought wrong. U.S. prosecutors and IRS investigators will not stop at the border in their efforts to bring tax cheats to justice,” said United States Attorney Richard L. Durbin, Jr.
On March 23, 2016, a jury convicted Garcia (aka “Elizabeth Jurado”) of one count of conspiracy to defraud the United States; five counts of mail fraud; three counts of aiding and abetting aggravated identity theft; and, one count of conspiracy to defraud the United States with respect to claims.
Evidence presented during trial revealed that from January 2010 to February 2015, Garcia used stolen identities to create fraudulent U.S. tax returns. Each return claimed an approximate $5,000 refund from the IRS. Garcia gave some of the IRS refund checks to individuals to bring into the United States to be cashed at money service businesses in El Paso. She mailed others to individuals residing in the U.S. (namely El Paso, Chaparral, NM, and Oklahoma City, OK) to be converted to U.S. currency. All monies derived from the scheme, minus agreed-to-fees retained by co-defendants, were wired back to Garcia.
Trial testimony also revealed that in September 2014, U.S. Customs agents at the Paso del Norte Port of Entry seized ten fraudulent tax returns from an employee of Garcia.
“Elizabeth Garcia de Nieto’s sentencing today reflects the hard work and dedication of the Internal Revenue Service in fulfilling its mission by enforcing the law and helping to restore integrity to the tax system,” said Special Agent in Charge William Cotter, IRS-CI San Antonio Field Office. “Criminal Investigators will continue to disrupt and dismantle organizations, such as Garcia’s, that seek to rob taxpayers through dishonest and fraudulent means. Today’s sentencing speaks loud and clear to everyone that no matter where the fraud is perpetrated, IRS-CI will pursue and bring to justice those that defraud the tax system.”
Prior to jury selection, 39-year-old co-defendants Christina Perez Altamirano of Oklahoma City, OK, and 35-year-old Alberto Altamirano Armendarie of Montgomery, AL, pleaded guilty to conspiracy to commit mail fraud. Last week, U.S. District Judge Philip R. Martinez sentenced Christina to imprisonment for one year; Alberto, to time served (approximately seven months of incarceration).
A fourth defendant in this case--43-year-old Rodolfo Ramirez-Estrada of El Paso--also pleaded guilty to one count of conspiracy to defraud the U.S. He is scheduled to be sentenced tomorrow morning by Judge Martinez. He faces up to five years in federal prison.
This case was investigated by special agents with the IRS-CI, Homeland Security Investigations (HSI) and U.S. Department of State—Diplomatic Security Service. Assistant United States Attorneys Jose Luis Gonzalez, Adrian E. Gallegos and Anna Arreola are prosecuting this case on behalf of the Government.
Two San Antonio Men Charged with Bank RobberyRead the Press Release
In San Antonio, FBI agents have arrested 32-year-old Jason Lynn Hathorn and 30-year-old David Lee Sartin for their alleged role in a bank robbery earlier this month, announced United States Attorney Richard L. Durbin, Jr.; Federal Bureau of Investigation (FBI) Special Agent in Charge Christopher Combs, San Antonio Division; and, San Antonio Police Chief William McManus.
A criminal complaint unsealed today in San Antonio charged Hathorn and Sartin with one count of bank robbery. According to the complaint, on August 8, 2016, a confidential human source identified Sartin as a suspect in four bank robberies in the San Antonio area. During each robbery, the perpetrator used a unique silicone “old man” mask which the source claimed was similar to one owned by Sartin. Later that day, an individual wearing the “old man” mask robbed the Amegy Bank of Texas branch on West Military Drive. The individual left the bank with approximately $8,100 and a surreptitiously placed GPS tracking device.
The complaint further states that upon learning that the suspect wore a silicone “old man” mask, FBI agents established surveillance at Sartin’s apartment. The GPS tracker alerted authorities as Sartin arrived home. As Sartin was taken into custody, authorities recovered an iPhone, a tie and a pair of sunglasses which matched the description of items worn by the Amegy Bank robbery suspect. Authorities subsequently reviewed video surveillance of Sartin’s apartment complex and discovered that Hathorn, Sartin’s roommate, had arrived shortly after Sartin and proceeded to enter the apartment complex recreation room carrying a blue bag. Surveillance video showed that Hathorn hid the bag behind the sofa in the recreation room and was observed peering out the window in the direction of where Sartin was being arrested. Law enforcement officers were able to recover the blue bag which contained the “old man” mask, three ball caps used in prior robberies, $8,100, GPS tracker and the demand note from the Amegy Bank robbery. The complaint alleges that Hathorn had assisted Sartin by meeting him after the Amegy Bank robbery and taking custody of the mask and money derived from the robbery.
Sartin and Hathorn were arrested based on states charges related to aggravated robbery. Sartin remained in state custody while Hathorn was released on bond. FBI agents arrested Hathorn today based on the federal criminal complaint. They remain in custody pending a detention and probable cause hearing before a U.S. Magistrate Judge next week in San Antonio. Hathorn and Sartin face up to 20 years in federal prison upon conviction.
This case is being investigated by the FBI together with the San Antonio Police Department. Assistant United States Attorney Sarah Wannarka is prosecuting this case on behalf of the Government.
A criminal complaint is merely a charge and should not be considered as evidence of guilt. The defendant is considered innocent until proven guilty in a court of law.
San Antonio Man Sentenced to 18 Years in Federal Prison for Receipt of Child PornographyRead the Press Release
In San Antonio today, 29-year-old John Michael Rymers was sentenced to 18 years in federal prison for receipt of child pornography 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 Fred Biery ordered that Rymers pay $20,000 restitution to his victims and be placed under supervised release for the remainder of his life after completing his prison term.
On October 23, 2015, FBI agents executed a search warrant at the defendant’s residence and seized a laptop computer and related media. A forensics examination on the seized items revealed the presence of approximately 150 videos and 1,150 images depicting child pornography.
According to court records, Rymers has engaged in the sexual exploitation of minors over the past six years including attempts to hack into the computer systems of minors as young as 14 in order to obtain nude and sexually explicit images and videos of these individuals; and, using false personas, mainly of young women, in order to persuade, coerce and entice minor females to create and send to him sexually explicit images and videos of themselves.
Rymers has remained in custody since being arrested in October 2015. On May 12, 2016, Rymers pleaded guilty to one count of receipt of child pornography.
This case was investigated by the FBI’s San Antonio Child Exploitation Task Force. Assistant United States Attorney Tracy Thompson prosecuted this case on behalf of the Government.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about PSC, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/resources.html.
Kerrville Man Sentenced to Federal Prison for Receipt of Child PornographyRead the Press Release
In San Antonio today, 28-year-old Samuel Eugene Baker of Kerrville, TX, was sentenced to 150 months in federal prison for receipt of child pornography announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation (FBI) Special Agent in Charge Christopher Combs, San Antonio Division.
On October 22, 2014, FBI agents executed a search warrant at the defendant’s residence and seized multiple home computers and related media. A forensics examination on the seized items revealed the presence of approximately 90 videos and 2,700 images depicting child pornography.
Baker has remained in custody since being arrested following the search warrant. On March 23, 2016, Baker pleaded guilty to one count of receipt of child pornography.
This case was investigated by the FBI’s San Antonio Child Exploitation Task Force. Assistant United States Attorney Tracy Thompson prosecuted this case on behalf of the Government.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about PSC, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/resources.html.
Former Crystal City Councilman Pleads Guilty to Role in Bribery and Kickback SchemeRead the Press Release
In Del Rio this afternoon, former Crystal City Councilman Gilbert Urrabazo pleaded guilty to a federal charge in connection with a bribery and kickback scheme involving city contracts announced United States Attorney Richard Durbin, Jr., and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
Appearing before United States District Judge Alia Moses, Urrabazo, age 45, pleaded guilty to one count of federal programs bribery. By pleading guilty, Urrabazo admittedly used his official position in April 2015 to enrich himself by accepting a cash bribe from a person seeking to do business in Crystal City. As a result of his guilty plea, Urrabazo faces up to ten years in federal prison; a fine of up to $250,000; a $2,000 monetary judgment; and, forfeiture of approximately $1,000 in U.S. currency seized by authorities during this investigation. Urrabazo remains on bond pending sentencing which has yet to be scheduled.
Urrabazo is the fourth defendant to enter a guilty plea in this case. Former Mayo Pro-Tem Rogelio Mata, former City Councilman Roel Mata and businessman Ngoc Tri Nguyen have admitted their roles in the bribery and kickback scheme. All four defendants face up to ten years in federal prison.
Former City Attorney and City Manager William James Jonas, age 54, and former Crystal City Mayor Ricardo Lopez, age 40, remains under a superseding indictment charged with conspiracy to commit bribery. In addition, Jonas is charged with four bribery-related counts and ten wire fraud-related counts; Lopez, two bribery-related and four wire-fraud related charges. Upon conviction, Jonas and Lopez face up to five years in federal prison for the conspiracy to commit bribery charge, up to ten years in federal prison for each bribery related charge, and up to 20 years in federal prison for each wire fraud related charge. Both are out on bond at this time awaiting trial scheduled for November 15, 2016, in Del Rio before United States District Judge Alia Moses.
This ongoing joint investigation is being conducted by the FBI and the San Antonio Police Department with assistance from the Texas Department of Public Safety Criminal Investigative Division and the Texas Rangers. Individuals who have first-hand information about corruption, fraud, or bribery related to Crystal City are urged to contact the FBI at (210) 225-6741.
Assistant United States Attorneys Jay Hulings and William R. Harris are prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. Jonas and Lopez are presumed innocent until proven guilty in a court of law.
Eagle Pass Texas Mexican Mafia Leader Faces up to Life Imprisonment after Pleading Guilty to Federal R.I.C.O. ChargeRead the Press Release
In Del Rio, 36-year-old Eagle Pass Texas Mexican Mafia (TMM) leader Jesus Lopez (aka “Worst Ever”) faces up to life in federal prison after pleading guilty today to conspiring to violate the Racketeering Influenced Corrupt Organization (RICO) statute to include acts of murder, extortion and drug trafficking. That announcement was made today by United States Attorney Richard Durbin, Jr.; Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division; Texas Department of Public Safety Director Steve McCraw; Drug Enforcement Administration Special Agent in Charge Joseph M. Arabit, Houston Division; Homeland Security Investigations Special Agent in Charge Shane Folden; and, Chief Patrol Agent Rodolfo Karisch, U.S. Border Patrol, Del Rio Sector.
According to court records, under the direction of Lopez, fellow TMM member and co-defendant Anselmo Flores, age 28 formerly of Eagle Pass, stabbed and murdered Eagle Pass resident Angel Cantu on January 22, 2011. In an effort to deflect law enforcement attention away from the criminal enterprise, Lopez provided money to Flores following the murder so that Flores could flee the area. Furthermore, at the time of Cantu’s murder, fellow TMM member and co-defendant, 37-year-old Francisco Hernandez of Eagle Pass, assaulted an individual with a dangerous weapon.
Court records also reflect that in December 2010, Lopez ordered Flores, Hernandez and others to retrieve and destroy firearms, which they did, that were used during the attempted murder of an individual who provided information about the TMM to law enforcement. Since 2009, Lopez admitted to distributing narcotics and extorting other cocaine distributors in Eagle Pass in furtherance of the TMM criminal enterprise.
Lopez, Flores and Hernandez are among 16 TMM members or associates to enter a guilty plea resulting from this investigation. No sentencing date has been scheduled for Lopez.
This investigation was conducted by the FBI, Texas Rangers, Texas Department of Public Safety Criminal Investigation Division, Drug Enforcement Administration, Homeland Security Investigations (HSI) and the United States Border Patrol.
Houston Police Officer and Wife Sentenced to Federal Prison for Transporting Undocumented AliensRead the Press Release
In Del Rio, 52-year-old former Houston police officer Juan Carrillo and his 43-year-old wife Rosa Lidia Carrillo of Cypress, TX, were sentenced to 15 months in federal prison followed by three years of supervised release for transporting undocumented aliens announced United States Attorney Richard L. Durbin, Jr., Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden and U.S. Border Patrol Del Rio Sector Chief Patrol Agent Rodolfo Karisch.
During sentencing yesterday afternoon, United States District Judge Alia Moses also ordered that each defendant pay a $1,000 fine. Both defendants remain on bond pending notification of a self-surrender date and location by the U.S. Bureau of Prisons to begin serving their prison terms.
On January 28, 2016, both defendants pleaded guilty to one count of transporting undocumented aliens. By pleading guilty, the Carrillos’ admitted that they were illegally transporting two undocumented aliens from Eagle Pass, TX, to Houston.
According to court documents, on November 8, 2015, U.S. Border Patrol agents from the Carrizo Springs station conducted an immigration inspection on a vehicle traveling on Highway 85 in Big Wells, TX. The defendants were in the front seat and there were four passengers in the back seat. Agents discovered that four of the occupants, including the defendants, were United States citizens. Two occupants were determined to be illegally present in the United States.
Court documents also reflect that Rosa Carrillo had previously wired $1,500 to an unknown individual in order to have a family member smuggled into the United States. The defendants, admittedly, had traveled that day to Eagle Pass to pick up the family member and his companion, another undocumented individual who was being harbored at the same location, and transport them to Houston.
“The sentencing of the Carrillos sends a clear message that individuals who engage in human smuggling will be held accountable for their actions,” said Special Agent in Charge Shane Folden, HSI San Antonio. “HSI will continue to work closely with its law enforcement partners to bring human smugglers to justice.”
The case resulted from a joint investigation by the Homeland Security Investigations (HSI) in Eagle Pass and the U.S. Border Patrol. This case was prosecuted by Assistant United States Attorneys Matthew Watters and Todd Keagle.
Former Presidio Title C.F.O. Admits Stealing from CompanyRead the Press Release
In San Antonio, Joseph P. Karpowicz, 47-year-old former Chief Financial Officer for Presidio Title (Presidio), admitted to stealing over $367,000 from the San Antonio real estate title company announced United States Attorney Richard L. Durbin, Jr.
Appearing this morning before United States Magistrate Judge Henry Bemporad, 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 approximately $367,300 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.
Karpowicz remains on bond pending sentencing scheduled for 1:30pm on November 16, 2016, before United States District Judge Xavier Rodriguez. Karpowicz faces up to 20 years on the mail fraud charge and up to ten years in federal prison on the money laundering charge.
This investigation was conducted by the United States Secret Service Identity Theft Task Force together with the Internal Revenue Service-Criminal Investigation. Assistant United States Attorney Thomas P. Moore is prosecuting this case on behalf of the Government.
Two Former Community Council of South Central Texas Officials Admit to Stealing over $188,000 in Government FundsRead the Press Release
In San Antonio this morning, 65-year-old former Executive Director Robert James Lucio and 55–year-old former Chief Financial Officer Monica Lynn Russ (aka “Monica Lynn Gourley”) admitted to stealing over $188,000 from the Community Council of South Central Texas (CCSCT) 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 District Judge Fred Biery, Lucio and Russ pleaded guilty to one count of theft from a program receiving federal funds. As a result, Lucio and Russ face up to ten years in federal prison.
According to court records, in 2012, CCSCT received over $4 Million in federal funding administered by the U.S. Department of Health and Human Services through the Comprehensive Energy Assistance Program and the Community Services Block Grant program. In 2012, Lucio and Russ schemed to provide themselves with unauthorized salary increases, bonuses and incentive payments despite policies and procedures put in place by CCSCT Board of Directors to prevent such actions. An internal audit completed in 2013 revealed that the total amount of unauthorized overpayments to Lucio totaled $92,881; Russ, $95,590.
Lucio and Russ remain on bond pending sentencing scheduled for January 6, 2017.
This investigation was conducted by the Federal Bureau of Investigation. Assistant United States Attorney Greg Surovic is prosecuting this case on behalf of the Government.
Federal and State Authorities Arrest Seven in Madisonville for Distributing MethamphetamineRead the Press Release
Today, federal, state and local authorities arrested seven Madisonville, TX, residents charged in connection with a methamphetamine trafficking operation announced United States Attorney Richard L. Durbin, Jr., Drug Enforcement Administration (DEA) Special Agent in Charge Joseph M. Arabit, Houston Division, and Texas Department of Public Safety Director Steve McCraw.
Those arrested today include: 26-year-old Ezequiel Guevara (aka “Ziek”); 23-year-old Pedro Martinez-Castandeda (aka “Dro,” “Pedro”); 27-year-old Manuel Martinez (aka “Meme”); 19-year-old Victor Doubrovski; 28-year-old Steven Jerrell Manning (aka “Rell”); 23-year-old Dedrick Dondre Whaley (aka “Lowkey”); and 23–year-old Jeremy Shaffer (aka “Jergo”).
A federal grand jury indictment returned in Waco and unsealed this afternoon charges the defendants with one count of conspiracy to distribute methamphetamine. According to the indictment, the defendants conspired to distribute methamphetamine since April 2015. During this year-long investigation, authorities took possession of approximately 1.5 kilograms of “crystal” methamphetamine through undercover purchases from the defendants.
Upon conviction, the defendants face up to 20 years in federal prison.
All of the defendants remain in federal custody at this time. Detention hearings are expected to occur next week before U.S. Magistrate Judge Jeffrey Manske in Waco.
This investigation was conducted by the Drug Enforcement Administration (DEA) and the Texas Department of Public Safety -- Criminal Investigation Division together with Homeland Security Investigations (HSI), Houston Division, and Madison County District Attorney Brian Risinger. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), United States Marshals Service, and the Brazos County Sheriff’s office assisted with today’s arrests. Assistant United States Attorney Mary Kucera 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.
Bellmead Man Sentenced to Federal Prison for Distribution of Child PornographyRead the Press Release
In Waco, 28-year-old William Ervin Taylor of Bellmead, TX, was sentenced to 210 months in federal prison for distributing child pornography announced United States Attorney Richard L. Durbin, Jr., Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden, San Antonio Division, and McLennan County Sheriff Parnell McNamara.
During yesterday’s sentencing hearing, United States District Judge Walter S. Smith, Jr., also ordered that Taylor pay $10,000 restitution and be placed on supervised release for a period of five years after completing his prison term.
On April 14, 2016, Taylor pleaded guilty to the charge. By pleading guilty, Taylor admitted that beginning in March 2015, he distributed images and videos depicting child pornography to individuals he later discovered were undercover HSI agents.
In August 2015, federal and state authorities arrested Taylor following the execution of a search warrant at his residence. A subsequent forensics examination of seized materials, including the defendant’s computer tablet and cellphone, revealed the presence of child pornography. Taylor has remained in custody since his arrest.
“By conducting these types of investigations, Homeland Security Investigations is taking child predators off the Internet, off the streets, and putting them behind bars,” said Special Agent in Charge Shane Folden, HSI San Antonio. “This sentence sends a clear message that there are serious consequences for those who exploit children in any way. Targeting crimes of this nature is a high priority for HSI. We will continue to dedicate resources and work with our law enforcement partners to identify and bring to justice these individuals.”
This investigation was conducted by the Homeland Security Investigations together with the McLennan County Sheriff’s Office. Assistant United States Attorney Mary Kucera prosecuted this case on behalf of the Government.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Authorities Arrest 24 in Maverick and Zavala Counties on Federal ChargesRead the Press Release
Federal, state and local authorities have arrested 24 individuals in Maverick and Zavala counties based on federal drug trafficking and money laundering charges announced United States Attorney Richard L. Durbin, Jr., and Drug Enforcement Administration (DEA) Special Agent in Charge Joseph M. Arabit today.
Those arrested today include:
Name Age Residence
SONIA BALBOA 52 Eagle Pass, TX
SUCEL BALBOA a.k.a. “Susan” 27 Eagle Pass
BALDEMAR BALBOA 24 Eagle Pass
WILIBALDO MORA, SR. a.k.a. “Willie” 50 Crystal City, TX
WILIBALDO MORA, JR. 23 Crystal City
JORGE RIVERA 37 Crystal City
PURA GARZA ESQUIVEL 49 Eagle Pass
TERESA SANTA LOPEZ 48 Eagle Pass
ANGEL LEE RAMIREZ 28 Del Rio, TX
DAVID DAVALOS, SR. 47 Crystal City
DAVID DAVALOS, JR. 26 Crystal City
JACINTO DAVALOS 41 Crystal City
MARICELA ALVARADO DAVALOS 32 Crystal City
BRUCE DAVALOS 34 Crystal City
GERARDO FIGUEROA a.k.a. “Bebo” 50 Crystal City
ROBERT TELLES 49 Crystal City
RAMIRO RAMIREZ a.k.a. “Ram” 55 Crystal City
RONALD DAVALOS a.k.a. “Gato” 46 Crystal City
ROGELIO DAVILA JR. a.k.a. “Roy” 23 Crystal City
ROGELIO DAVILA SR. 61 Crystal City
ARTURO HERNANDEZ a.k.a. “Cheffy” 38 Crystal City
ARNOLDO ALMEDIA a.k.a. “Ernie” 57 Crystal City
ABELARDO RODRIGUEZ a.k.a. “AB” 24 Crystal City
SIMON CONTRERAS 59 Crystal City
Genaro Balboa-Falcon, age 47 of Mexico, and Joseph Garza (a.k.a. “Cain”), age 30 of Crystal City, are considered fugitives.
A nine-count federal grand jury indictment, returned on Tuesday and unsealed this morning in Del Rio, charges the above-named defendants--with the exception of David Davalos, Jr. and Maricela Alvarado Davalos--with conspiring to possess with intent to distribute cocaine. The indictment charges David Davalos, Jr. and Maricela Alvarado Davalos with using a cellular telephone to facilitate drug trafficking. David Davalos, Sr., Jacinto Davalos, and Bruce Davalos are also charged with one count of maintaining a residence for the distribution of cocaine. Genaro Balboa-Falcon, Sonia Balboa, Sucel Balboa, Baldemar Balboa, Wilibaldo Mora, Sr., Jorge Rivera, Pura Esquivel and Teresa Lopez are also charged with one count of conspiracy to commit money laundering.
The indictment alleges that since October 1, 2012, the defendants were part of a cocaine distribution conspiracy operating primarily in the Eagle Pass and Crystal City areas.
The indictment also seeks the criminal forfeiture of nine real estate properties—two in Eagle Pass and seven in Crystal City—alleged as proceeds derived from the illegal drug trafficking activities. The indictment also seeks a $5.98 Million money judgement which represents the alleged proceeds derived from, and the value of property involved in, the criminal enterprise.
During this investigation, authorities have seized more than 2.5 kilograms of cocaine, approximately 660 pounds of marijuana, 36 firearms, 35 vehicles, a bullet-proof vest, and approximately $110,000 in U.S. Currency attributed to the criminal enterprise.
Upon conviction of the drug conspiracy count and in accordance with individually charged cocaine amounts, Genaro Balboa-Falcon, Sonia Balboa, Wilibaldo Mora Sr, Jorge Rivera, David Davalos Jacinto Davalos and Bruce Davalos face between ten years and life in federal prison; Sucel Balboa, Baldemar Balboa, Wilibaldo Mora, Jr., Pura Esquivel, Teresa Lopez, Angel Ramirez, Gerardo Figueroa, Robert Telles, Ramiro Ramirez, Ronald Davalos, Rogelio Davila, Jr., Rogelio Davila, Sr., Arturo Hernandez, Joseph Garza, Arnoldo Almedia, Simon Contreras, and Abelardo Rodriguez face up to 20 years in federal prison.
Upon conviction of maintaining a residence for the purpose of drug trafficking, the defendants face up to 20 years imprisonment. Upon conviction of conspiracy to commit money laundering, the defendants face up to 20 years imprisonment. David Davalos, Jr. and Maricela Alvarado Davalos each face up to four years in federal prison upon conviction of the use of a cellular telephone to facilitate drug trafficking charge.
All of the arrested defendants remain in federal custody at this time. Detention hearings are scheduled for August 29, 2016, before United States Magistrate Judge Victor Roberto Garcia in Del Rio.
This investigation was conducted by the Drug Enforcement Administration (DEA), Zavala County Sheriff’s Office, Maverick County Sheriff’s Office, Dimmit County Sheriff’s Office, Eagle Pass Police Department and the U.S. Border Patrol. The U.S. Marshals Service, Federal Bureau of Investigation (FBI), Homeland Security Investigations (HSI), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Texas Department of Public Safety assisted in making the arrests.
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.
Odessa Lawyer Admits Making False Statement to Federal AuthoritiesRead the Press Release
Rahul Malhotra, 46-year-old principal owner of Malhotra Law Firm, P.C. in Odessa and citizen of Canada, faces up to five years in federal prison after pleading guilty today to making a false statement to federal authorities announced United States Attorney Richard L. Durbin, Jr., and Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez, El Paso Division.
Appearing before United States Magistrate Judge Henry J. Bemporad in San Antonio, Malhotra admittedly lied to federal authorities about his ownership of the law firm--a violation of his Visa conditions. According to court records, in March 1997, Malhotra entered the United States as a Non-immigrant “TN” Visa holder to begin working at a law firm in Odessa. In 2000, Malhotra purchased the practice and the office space from its owner. When questioned in October 2014, Malhotra told investigators that another lawyer was the majority shareholder of the Malhotra Law Firm when in fact, he was self-employed as the proprietor of the law firm.
Malhotra remains on bond pending sentencing scheduled for 9:00am on November 17, 2016, before United States District Judge Orlando Garcia.
This investigation was conducted by HSI agents together with U.S. Citizenship and Immigration authorities. Assistant United States Attorney William F. Lewis, Jr., is prosecuting this case on behalf of the Government.
Two Michigan Residents Sentenced to Federal Prison for Sex Trafficking of MinorsRead the Press Release
In Austin today, 30-year-old Deqwon Saquod Lewis and 24-year old Starisha Shontel Moore, both of Flint, Michigan, were sentenced to 300 months and 235 months in federal prison, respectively, for sex trafficking of minors announced United States Attorney Richard L. Durbin, Jr., and Steven McCraw, Director of the Texas Department of Public Safety.
In addition to the prison terms, United States District Judge Sam Sparks ordered that both defendants be placed on supervised release for a period of five years after completing their prison terms and register as a sex offender.
On May 27, 2016, a federal jury found Lewis and Moore each guilty of two felony counts of sex trafficking of two minor females under the age of 18 years. The jury also determined that both Lewis and Moore were also each guilty of a third count of knowingly transporting one of the minor girls from the State of Texas to the State of Michigan, with the intent to engage the minor in prostitution.
Trial testimony revealed that during the months of June through August of 2015, in Austin and elsewhere, the defendants created and posted online “escort” advertisements that resulted in the sexual exploitation of the minors via commercial sex acts. In August of 2015, the defendants transported one of the minors, who had recently turned 15 years old, from Texas to Flint and Detroit, Michigan for the purpose of sexually exploiting her.
“Crimes against children – especially sex trafficking of minors – are some of the most difficult cases we work; that said, we are pleased to have been part of this important investigation because we helped rescue children and took two dangerous criminals off the street,” said DPS Director Steven McCraw. “The teamwork among federal, state and local law enforcement agencies in these types of investigations is crucial to combatting crime, pursuing suspects and protecting victims – and we are grateful those important partnerships.”
This case was investigated by the Human Trafficking Unit of the Texas Department of Public Safety. Assistant
United States Attorneys Grant Sparks and Ashley Hoff prosecuted this case on behalf of the Government.
Five Sentenced to Federal Prison in Connection with a Fraudulent Multi-Million Dollar Income Tax Refund SchemeRead the Press Release
In Austin today, five individuals, including three sisters, were sentenced to federal prison for their roles in a scheme that involved over 3,200 fraudulent income tax returns that claimed refunds totaling more than $9 million announced United States Attorney Richard L. Durbin, Jr., and Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge William Cotter.
United States District Judge Sam Sparks sentenced:
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Natividad Mercado Medina, a 38–year-old Mexican national who formerly lived in Conroe, TX, and is residing in Atlanta, GA, to 121 months in federal prison;
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Elizabeth Mercado Medina, a 39–year-old Mexican national residing in Atlanta, GA, to 108 months in federal prison;
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Sofia Mercado Medina, a 37-year-old Mexican national residing in Atlanta, to 108 months in federal prison;
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Bertin Sanchez Garcia, a 28–year-old Mexican national residing in Georgetown, TX, to 33 months in federal prison; and,
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Yajaira Limon Lopez, a 36-year-old Mexican national residing in Houston to 51 months in federal prison.
In addition to the prison terms, Judge Sparks ordered that the defendants pay, joint and severally, $3,888,519.67 restitution to the Internal Revenue Service; and, be placed on supervised release for a period of three years after completing their prison terms. Judge Sparks also granted the Government’s request to forfeit Sophia’s and Elizabeth’s residences in Georgia and $93,000 in U.S. Currency.
According to court records, in 1996, the Internal Revenue Service began issuing Individual Taxpayer Identification Numbers, or “ITINs”. By obtaining an ITIN, an individual who is already disregarding federal law by living in the United States illegally is given the opportunity to comply with federal law by filing taxes. If the applicant can furnish sufficient proof (i.e. foreign birth certificate, national identification card, passport, etc.) that he or she is living in the United States illegally, the IRS will issue that person an ITIN.
Beginning in 2014 and under the direction of Natividad Medina, the defendants conspired to steal money from the U.S. Treasury and U.S. taxpayers by exploiting the ITIN system. The Medina sisters began by collecting Mexican identification documents from unknown people in Mexico and used those to fraudulently obtain ITINs. The Medina sisters then used those ITINs to submit false and fraudulent income tax returns to the Internal Revenue Service Center in Austin. They requested that the IRS mail refund checks to residences or to one of more than 200 post office boxes in and around the Houston area which Lopez had rented and maintained on behalf of the Medina sisters.
All five defendants, who have remained in federal custody since their arrests in February 2016, entered guilty pleas to one count of conspiracy to commit mail fraud earlier this year.
“These unscrupulous defendants thought they had figured out a clever scheme to thwart the IRS and steal from American taxpayers,” said William J. Cotter, IRS Criminal Investigation, Special Agent in Charge, San Antonio Field Office. “The IRS has made investigating these types of crimes a top priority and we will vigorously pursue those who undermine the integrity of the U.S. tax system.”
This case was investigated by the Internal Revenue Service-Criminal Investigation together with the U.S. Postal Inspection Service. Assistant United States Attorneys Dan Guess, Matt Harding and Daniel Castillo prosecuted this case on behalf of the Government.
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San Antonio Texas Mexican Mafia Member Admits Role in Death of Balcones Heights Police Officer Julian PesinaRead the Press Release
In San Antonio this morning, 35-year-old Texas Mexican Mafia (TMM) member Jerry Idrogo (aka “Spooks”) pleaded guilty to a federal charge claiming responsibility for two murders including the murder of Balcones Heights Police Officer Julian Pesina in May 2014 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 District Judge Xavier Rodriguez, Idrogo pleaded guilty to one count of conspiracy to participate in a Racketeering Influenced and Corrupt Organization (RICO). As a result, Idrogo faces up to life in federal prison.
According to court records, Idrogo, a TMM Northside Sergeant, admitted to killing TMM member Billy Padilla in San Antonio on August 26, 2013, for failing to turn over drug proceeds to the organization. Also, Idrogo admitted to participating in the murder of Officer Pesina outside his “Notorious Ink Tattoo and Piercing Studio” on May 4, 2014. The factual basis filed in this case states that although he was a police officer, Pesina was simultaneously claiming membership in the TMM, had tattoos consistent with such membership, and was selling drugs to TMM members. Idrogo, acting upon the orders of a superior, TMM member Ruben “Menace” Reyes, drove his co-defendants, 38-year-old TMM prospect Alfredo Cardona and 27–year-old TMM-member-in-bad-standing Jesse Santibanez, to Pesina’s business where Cardona and Santibanez shot and killed Pesina.
By pleading guilty, Idrogo also admitted to conspiring with others to interfere with Commerce by extortion and to distribute methamphetamine, cocaine and heroin in furtherance of the Texas Mexican Mafia’s criminal enterprise. Idrogo admittedly collected the “dime.” The “dime” is a 10 percent tax imposed by the TMM on individuals who sell narcotics in their territory for assistance in collecting drug debts as well as a degree of protection from robbery and competing drug dealers.
Idrogo remains in federal custody awaiting sentencing scheduled for November 16, 2015. Cardona and Santibanez, who remain in federal custody, await jury selection and trial scheduled for October 17, 2016. Reyes, who faces life imprisonment, is awaiting sentencing in September after pleading guilty last month to five counts of aiding and abetting the using and discharging of a firearm during and in relation to a crime of violence; and, five counts of violent crime (murder) in aid of racketeering (VICAR).
This investigation was conducted by the FBI together with the San Antonio Police Department, Texas Department of Public Safety Criminal Investigations Division, Bexar County Sheriff’s Department, Frio County Sheriff’s Department, and the Texas Department of Criminal Justice.
Odessa Tax Return Preparer Indicted by Federal Grand JuryRead the Press Release
In Midland, a federal grand jury indicted Juan Alfonso Gonzalez Camacho for his role in a scheme that resulted in the issuance of fraudulent Income Tax return refunds announced United States Attorney Richard L. Durbin, Jr., and Internal Revenue Service-Criminal Investigation Special Agent in Charge William Cotter.
The indictment, returned on June 22, 2016, and unsealed today in El Paso, charges Camacho with 14 counts of aiding and abetting the preparation of a false Tax Return. According to the indictment, from January 2011 until April 15, 2013, Camacho prepared and filed income tax returns which claimed deductions to which the defendant knew the taxpayers were not entitled. Based on the 14 counts charged in the indictment, authorities estimate that Camacho’s actions resulted in fraudulent refunds totaling an estimated $162,000.
IRS Criminal Investigation Special Agent in Charge William Cotter said, “IRS-Criminal Investigation Special Agents use their investigative and financial expertise to detect and hold accountable abusive preparers who falsely tell taxpayers they are eligible for tax credits that they are not entitled to receive. Taxpayers should always insist on reviewing their return before signing it, and question any items they do not fully understand.”
Camacho was arrested in El Paso yesterday and had his initial appearance in federal court there this afternoon. During his initial appearance, Camacho was placed on a $10,000 bond. His arraignment is scheduled for 3:45pm on August 18, 2016, before United States Magistrate Judge David Counts in Midland.
This continuing investigation is being conducted by the Internal Revenue Service-Criminal Investigation. Assistant United States Attorney William F. Lewis, Jr. is prosecuting this case on behalf of the Government.
More Federal Charges Filed Against Two Former Crystal City OfficialsRead the Press Release
In Del Rio today, the Federal Grand Jury returned a superseding indictment adding new charges against two former Crystal City, TX, officials announced United States Attorney Richard Durbin, Jr., and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
In February 2016, the federal grand jury indicted 54-year-old former City Manager and City Attorney William James Jonas, III, with one count of conspiracy to commit bribery and three substantive federal programs bribery charges. The original indictment also charged 40-year-old former Crystal City Mayor Ricardo Lopez with one count of conspiracy to commit bribery and one substantive federal programs bribery charge
Today’s superseding indictment incorporates those original charges and adds 10 new charges against Jonas and five charges against Lopez. The new charges against Jonas include one count of conspiracy to commit wire fraud and theft of honest services; five substantive counts of wire fraud and theft of honest services; and, four counts of wire fraud. The new charges against Lopez include one count of conspiracy to commit wire fraud and theft of honest services; and, four substantive counts of wire fraud and theft of honest services.
The superseding indictment alleges that between May 2012 and February 2016, Jonas and Lopez allegedly used their official positions to enrich themselves by soliciting and accepting bribes from persons seeking to do business in Crystal City. The superseding indictment also alleges that Jonas and Lopez used emails, texts and phone calls to carry out their scheme to defraud Crystal City and its citizens through bribery and the concealment of information.
The superseding indictment also alleges that Jonas was involved in a wire fraud scheme in connection with a multi-million-dollar contract in May 2014 for various improvements to the City’s infrastructure including replacing the City’s water meters, certain heating and air conditioning equipment, and lighting. Under the contract, Crystal City agreed to place approximately $2,124,389 in a specific escrow account and only use those funds to pay the provider as phases of the work were completed. Crystal City subsequently issued Certificates of Obligation and raised $2.25 million specifically for the improvements and for costs related to the issuance of the certificates. Those monies were deposited into the City General Fund in December 2014.
The superseding indictment further alleges that Jonas, despite contract requirements, directed City employees to leave the monies in the City’s General Fund which was then used to pay Jonas’ salary as City Manager and City Attorney, reimburse Jonas for certain expenses, and pay certain favored contractors, among other uses. According to the indictment, the balance in the City’s General Fund after the deposit of the raised funds was $2,207.050.62. The balance in the City’s General Fund on or about October 31, 2015, was $2,199.95. On November 6 2015, Crystal City still owed approximately $735,048.79 in payments under the contract.
Upon conviction, Jonas and Lopez face up to five years in federal prison for the conspiracy to commit bribery charge, up to ten years in federal prison for each bribery related charge, and up to 20 years in federal prison for each wire fraud related charge. Both are out on bond at this time.
Three other defendants in this case—former Mayor Pro-Tem Rogelio Mata, former City councilman Roel Mata, and businessman Ngoc Tri Nguyen have each already entered guilty pleas to a federal programs bribery charge and are awaiting sentencing. All three remain on bond and face up to ten years in federal prison and up to a $250,000 fine at sentencing.
A fourth defendant, former City Councilman Gilbert Urrabazo is scheduled to have a re-arraignment hearing at 1:30pm on August 25, 2016, in front of U.S. District Judge Alia Moses in Del Rio. Urrabazo, who remains on bond, is charged by the initial indictment with one count of conspiracy to commit bribery and one substantive federal programs bribery charge.
This ongoing joint investigation is being conducted by the FBI and the San Antonio Police Department with assistance from the Texas Department of Public Safety Criminal Investigative Division and the Texas Rangers. Individuals who have first-hand information about corruption, fraud, or bribery related to Crystal City are urged to contact the FBI at (210) 225-6741.
Assistant United States Attorneys Jay Hulings and William R. Harris are prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Texas Man Sentenced to 300 Months in Prison for Sexual Abuse of Orphans While Working in MalawiRead the Press Release
A former general manager at an orphanage in Malawi was sentenced today to 25 years in prison for one count of engaging in illicit sexual conduct in a foreign place, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Richard L. Durbin Jr. of the Western District of Texas.
Gerald Campbell, 66, of Odessa, Texas, pleaded guilty on May 18, 2016. Senior U.S. District Judge Robert A. Junell of the Western District of Texas presided over the sentencing and also ordered Campbell to serve a lifetime term of supervised release and to pay $40,000 in restitution.
According to admissions made in connection with his plea agreement, Campbell engaged in sexual acts with eight minors, all of whom were orphans living at the Victory Christian Children’s Home in Malawi between 1997 and 2009. Campbell admitted that he used his position as orphanage manager, with access to better accommodations and amenities, such as hot water, to lure the minor victims, one of whom was suffering from the effects of HIV, into his house and sexually abuse them. In addition, Campbell admitted that he knew that what he was doing was wrong and that he thought nobody would believe the minors if they reported the abuse. Furthermore, Campbell admitted that he sent money to some of the minors in an attempt to keep them from reporting the abuse to authorities.
U.S. Immigration and Customs Enforcement’s Homeland Security Investigations investigated the case with assistance from the Texas Department of Public Safety’s Criminal Investigations Division. Trial Attorneys Leslie Fisher and Austin M. Berry of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Brandi Young of the Western District of Texas prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.