Western District of Texas
Press releases recorded for this federal judicial district.
Del Rio Man Pleads Guilty to Federal Cyberstalking and Child Pornography ChargesRead the Press Release
In Del Rio, 27-year-old Michael Martinez faces up to ten years in federal prison after pleading guilty to federal charges involving online sextortion, cyberstalking and child exploitation 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 Alia Moses yesterday afternoon, Martinez pleaded guilty to two counts of cyberstalking and one count of receipt of child pornography. By pleading guilty, Martinez admitted that from October 2013 to August 2014, he caused emotional distress to multiple female victims--one of whom was a minor--by using a fictitious Facebook account, email accounts and text messages to harass, threaten and intimidate them. Furthermore, Martinez admittedly threatened to post nude photographs he had of the victims on the Internet and send the photographs to their respective family and friends unless the victims continued to supply him with additional sexually explicit photographs. The minor victim complied with his threat and sent him nude photographs that he received and stored on multiple electronic devices.
On August 21, 2014, FBI agents executed a search warrant at the defendant’s residence. During the execution of the search warrant, investigators seized several computers, an assortment of computer related storage devices and the defendant’s cell phone. A forensics examination of the seized items revealed the presence of approximately a dozen images of the minor victim engaged in sexually explicit conduct.
Martinez has remained in federal custody since his arrest on August 13, 2015. Sentencing is scheduled for 9:00am on September 8, 2016, before Judge Moses in Del Rio.
This case is being brought as part of Project Safe Childhood, 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, Project Safe Childhood 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 Project Safe Childhood, please visit http://www.justice.gov/psc.
The case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Ralph Paradiso is prosecuting this case on behalf of the Government.
Husband and Wife Nabbed at Port of Entry in El Paso Sentenced to Federal PrisonRead the Press Release
In El Paso, a husband and wife were sentenced to 188 months and 24 months in federal prison, respectively, for conspiring to possess with intent to distribute approximately four kilograms of cocaine announced United States Attorney Richard Durbin, Jr.; Drug Enforcement Administration (DEA) Special Agent in Charge Will Glaspy, El Paso Division; Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez, El Paso; and, U.S. Customs and Border Protection El Paso Port Director Beverly Good.
Yesterday afternoon, United States District Judge Philip Martinez sentenced 52-year-old Manuel Bayona-Montes to 188 months in federal prison followed by five years of supervised release. On March 30, 2016, Judge Martinez sentenced Bayona’s wife, 52-year-old Ruth Bayona-Gandara, to 24 months in federal prison followed by two years of supervised release. Both defendants had previously pleaded guilty to one count of conspiracy to possess with intent to distribute cocaine.
According to court records, on August 12, 2015, U.S. Customs and Border Protection authorities apprehended the defendants at the Paso Del Norte Port of Entry after discovering approximately four kilograms of cocaine concealed within their vehicle.
This joint investigation was conducted by DEA, HSI, U.S. Customs and Border Protection, and Internal Revenue Service-Criminal Investigation together with High Intensity Drug Trafficking Area (HIDTA) task force officers from the El Paso Police Department, El Paso County Sheriff’s Office, Anthony (TX) Police Department and the U.S. Border Patrol.
Escapee Sentenced to Federal Prison for Austin Bank RobberiesRead the Press Release
In Austin this morning, 38-year-old Brian Anthony Whitford was sentenced to 160 months in federal prison for robbing two Austin banks last year after escaping from a half-way house announced United States Attorney Richard Durbin, Jr., FBI Special Agent in Charge Christopher Combs, San Antonio Division, and United States Marshal Robert Almonte.
In addition to the prison term, United States District Judge Sam Sparks ordered that Whitford pay $3,703.00 restitution to Compass Bank and be placed on supervised release for a period of three years after completing his prison term.
In December 2015, Whitford pleaded guilty to two counts of bank robbery. By pleading guilty, Whitford admitted that on April 13, 2015, he escaped from a halfway house in Del Valle, TX, where he was completing his federal sentence for robbing two Austin banks in April 2010. On the same day of his escape, Whitford attempted to rob a Wells Fargo Bank branch located on Guadalupe Street and then successfully robbed a Compass Bank branch located on South Congress Avenue.
Authorities arrested Whitford on April 15, 2016, in San Antonio.
This joint investigation was conducted by the FBI and the United States Marshals Service with assistance from the Austin and San Antonio Police Departments. Assistant United States Attorney Ashley Hoff and Gregg Sofer prosecuted this case on behalf of the Government.
U.S. Army Specialist Arrested on Federal Child Porn Distribution ChargeRead the Press Release
In San Antonio, a U.S. Army Specialist assigned to Fort Sam Houston remains in federal custody today in connection with the sexual exploitation of minors announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division.
A federal complaint filed this morning, charges 26–year-old Anthony Quinton Quesinberry with one count of distribution of child pornography. According to the criminal complaint, during a one-week period beginning on February 18, 2016, the defendant transmitted ten posts to random users of the social networking application named YikYak which contained images of child pornography and/or verbiage soliciting minors for sexual contact.
Yesterday, FBI agents executed a search warrant and seized the defendant’s cellphone and desktop computer. A preliminary forensic examination of the phone and computer revealed the presence of child pornography.
Upon conviction, Quesinberry faces up to 20 years in federal prison. A detention hearing for the defendant is expected to occur next week in U.S. Magistrate court in San Antonio.
It is important to note that a criminal complaint is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
This investigation continues. It is being conducted by the FBI together with the U.S. Army Criminal Investigative Command at both Fort Sam Houston and Fort Riley, KS. Assistant United States Attorney Sarah Wannarka is prosecuting this case on behalf of the Government.
Two Hobbs, NM Men Sentenced to Federal Prison for Drug TraffickingRead the Press Release
In Pecos today, 45-year-old Claudio Marques Martinez, Jr., was sentenced to 262 months in federal prison followed by eight years of supervised release for conspiring to transport marijuana from the Big Bend area to Hobbs, NM, for further distribution announced United States Attorney Richard Durbin, Jr., and DEA Special Agent in Charge Will Glaspy, El Paso Division.
In May 2015, Martinez’s co-defendant, 62-year-old Norberto Pando Aranda (aka “Beto”) was sentenced to 240 months in federal prison followed by ten years of supervised release for his role in the marijuana distribution scheme.
According to court records, from December 2012 to May 2013, the defendants recruited drivers to pick up marijuana along the border with Mexico in South Brewster and Presidio, Counties of Texas, and transport it to Hobbs, New Mexico. During the conspiracy, authorities seized over 1,200 kilograms of marijuana attributed to this organization. Five drivers hired by the defendants have been sentenced to federal prison terms ranging from 41 to 60 months.
This joint investigation was conducted by the DEA High Intensity Drug Trafficking Area (HIDTA) Task Force in Alpine, TX, with assistance from the Lea County (NM) Drug Task Force. Assistant United States Attorney James J. Miller, Jr., prosecuted this case on behalf of the Government.
San Antonio Businessman Pleads Guilty to Role in Kickback Scheme Involving Local School District Insurance PlansRead the Press Release
In San Antonio today, 46-year-old independent insurance consultant William O. Haff faces up to five years in federal prison after pleading guilty this afternoon to his role in a kickback/bribery scheme involving local school district insurance plans announced United States Attorney Richard Durbin, Jr., and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
Appearing before United States District Judge Xavier Rodriguez, Haff pleaded guilty to one count of conspiracy to commit wire fraud. According to court records, The Mullen Pension and Benefit Group LLP (the “Mullen Group”) was a limited partnership that did business in San Antonio and elsewhere. Among other things, the Mullen Group provided insurance and related services to state and local government entities, including school districts and municipalities, on behalf of various insurance companies. The Mullen Group received payment from these insurance companies in the form of commissions, ordinarily a certain percentage of revenue received by the insurance company from a particular contract.
By pleading guilty, Haff admitted that from March 2008, to February 2010, he accepted approximately $64,584 from the Mullen Group in exchange for providing confidential information concerning employee insurance plan Request For Proposals (RFP), including one issued by the Edgewood Independent School District in San Antonio, that was not available to competitors of the Mullen Group. Haff also admitted to accepting money from the Mullen Group for influencing Boards of Trustees for the School Districts to award insurance services contracts to clients of the Mullen Group. In July 2008, Haff accepted $2,500 for his recommendation of a Mullen Group client to the San Antonio ISD Board of Trustees.
“Haff schemed to enrich himself by effectively selling inside information to give the recipients an unfair competitive advantage, and thereby undermine the integrity of the public contracting process,” stated United States Attorney Richard L. Durbin, Jr.
Haff remains on bond pending sentencing scheduled for 1:30pm on July 13, 2016.
This investigation was conducted by special agents from the FBI. Assistant United States Attorneys Mark Roomberg and Joe Blackwell are prosecuting this case on behalf of the Government.
Lovington, New Mexico Man Sentenced to Federal Prison for Assault on Law Enforcement OfficialsRead the Press Release
In Pecos today, a federal judge sentenced a Lovington, NM, man to 300 months in federal prison for a crime spree during which five law enforcement officials were assaulted, announced United States Attorney Richard L. Durbin, Jr., and FBI Special Agent in Charge Douglas E. Lindquist, El Paso Division.
In addition to the prison term, Chief United States District Judge Orlando Garcia ordered that 29–year-old Enrique Sanchez Quiroga be placed on supervised release for a period of three years after completing his prison term.
On November 2, 2015, Quiroga pleaded guilty to one count each of conspiracy to impede or injure officers; assaulting, resisting or impeding officers; unlawful transport of firearms; transportation of stolen firearms; receipt of stolen firearms; use of a firearm during a crime of violence; and, transportation of a stolen motor vehicle.
According to court records, during the early morning hours on December 14, 2015, near Sierra Blanca, TX, a U.S. Border Patrol agent attempted to stop a vehicle whose occupants included Quiroga, along with Hobbs, NM residents Maritza Navarrette Mota, age 23, and Sayra Baeza, age 26. The trio failed to yield and began firing shots from their stolen vehicle at the Border Patrol agent and a second Border Patrol agent who had joined in the pursuit. The trio ultimately abandoned the stolen vehicle and ran into the desert. Law enforcement, which by now also included Texas Department of Public Safety troopers and an officer with the Texas Department of Wildlife, continued to pursue the defendants on foot. Mota and Baeza eventually surrendered while Quiroga continued firing his weapon at law enforcement authorities. Ultimately, Quiroga was subdued after being shot several times by law enforcement during the pursuit.
According to court records, the arrests of the defendants served as the end of a crime spree which began approximately five days prior in New Mexico where there were reports of a stolen firearm, a stolen vehicle and a burglary of a department store had occurred.
On February 16, 2016, U.S. District Judge Lee Yeakel sentenced Mota and Baeza to 144 months and 128 months in federal prison, respectively, for their roles in the criminal activity.
This case was investigated by the Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Border Patrol, and Texas Department of Public Safety, with the assistance of the El Paso County Attorney’s Office. Assistant United States Attorney James J. Miller, Jr. prosecuted this case on behalf of the Government.
Interstate Stalker Pleads Guilty in San AntonioRead the Press Release
In San Antonio, 57-year-old Gabriel Robert Caggiano of Los Angeles, CA, faces up to five years in federal prison after pleading guilty to 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.
Appearing before United States District Judge Xavier Rodriguez, Caggiano pleaded guilty to one count of stalking. According to court records, in 2008, Caggiano was employed 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.
On November 12, 2015, Caggiano was arrested in Los Angeles. On November 24, 2015, Judge Rodriguez revoked Caggiano’s bond. He remains in federal custody. Sentencing is scheduled for 1:30pm on July 13, 2016.
This investigation was conducted by the FBI in San Antonio and Los Angeles. Assistant United States Attorney Sarah Wannarka is prosecuting this case on behalf of the Government.
Former Texas D.P.S. Employee Pleads Guilty to Fraudulent Drivers License SchemeRead the Press Release
In San Antonio, 54-year-old Jose A. Ytuarte, a former Texas Department of Public Safety Customer Service Representative in Hondo, TX, pleaded guilty to 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.
Appearing before United States District Judge Xavier Rodriguez, Ytuarte pleaded guilty to one count of use of interstate 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, 44-year-old Azeez Mistry of San Antonio, is charged in the conspiracy count. He is also charged with one count of transfer of false identification documents and four counts of use of an interstate communication facility in aid of unlawful activity. According to the indictment, 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, who faces up to five years in federal prison, remains on bond pending sentencing scheduled for July 13, 2016. Mistry, who is also currently on bond, is scheduled for jury selection and trial on May 2, 2016. Upon conviction, he faces up to 15 years in federal prison.
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.
El Paso Income Tax Return Preparer Indicted by Federal Grand JuryRead the Press Release
In El Paso, Gabriela Chavez Garcia, owner and operator of G & A Tax Service, is charged with 38 counts of aiding and abetting the preparation of a false income tax return, announced United States Attorney Richard L. Durbin, Jr., and Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge William Cotter.
A federal grand jury indictment, unsealed this afternoon, alleges that from March 2011 to April 2013, Garcia prepared and filed fraudulent federal Income Tax Returns. The indictment further alleges that the fraudulent returns, submitted on behalf of 20 individuals, contained fraudulent claims and figures, including Earned Income Credit, Child Tax Credit, Additional Child Tax Credit, certain business expenses, certain unreimbursed job expenses and other miscellaneous deductions to which the taxpayers were not entitled.
IRS-CI agents arrested Garcia yesterday. Garcia was released on a $20,000 bond at her initial appearance today in front of U.S. Magistrate Judge Robert Castaneda.
Upon conviction, each charge calls for up to three years in federal prison.
This case was investigated by special agents with the Internal Revenue Service-Criminal Investigation. Assistant United States Attorney Nikhil Bhagat is prosecuting this case on behalf of the Government.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendant is considered innocent until proven guilty in a court of law.
Former City of Del Rio Employee Sentenced to Federal Prison for EmbezzlementRead the Press Release
This morning, Ernesto Valdez, Jr., a former clerk in the City of Del Rio’s utility department, was sentenced to 21 months in federal prison for embezzling more than $33,000 from the City announced United States Attorney Richard L. Durbin, Jr., and FBI Special Agent in Charge Christopher Combs.
In addition to the prison term, United States District Judge Alia Moses ordered that Valdez pay a total of $33,714 restitution to the City of Del Rio, perform 300 hours of community service and be placed on supervised release for a period of three years after completing his prison term.
In March 2013, Valdez pleaded guilty to one count of theft concerning programs receiving federal funds. By pleading guilty, Valdez admitted that from September 2007 to June 2010, he pocketed approximately $17,000 in cash payments made by utility customers. At sentencing, Judge Moses also found that during that same time period, Valdez manipulated the billing account of a relative and thus, is liable for an additional $16,954 in free water services provided to that relative.
Valdez remains on bond pending U.S. Bureau of Prisons facility designation.
This case resulted from an investigation conducted by the Federal Bureau of Investigation with assistance from the Del Rio Police Department. Assistant United States Attorney Todd R. Keagle prosecuted this case on behalf of the Government.
El Paso Man Sentenced to 20 Years in Federal Prison for Receipt and Distribution of Child PornographyRead the Press Release
In El Paso today, 27-year-old Ignacio Gallegos was sentenced to 20 years in federal prison for receipt and distribution of child pornography announced United States Attorney Richard L. Durbin, Jr., and Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez, El Paso Division.
In addition to the prison term, United States District Judge Kathleen Cardone ordered that Gallegos be placed on supervised release for 10 years after completing his prison term.
On January 5, 2016, Gallegos pleaded guilty to one count of receipt and distribution of child pornography and one count of possession of material involving the sexual exploitation of children. By pleading guilty, Gallegos admitted that he received, possessed and distributed visual depictions of children engaging in sexual explicit conduct.
Gallegos has remained in federal custody since his arrest by HSI agents on May 28, 2015.
“This sentence sends a sobering message to child predators, who are under the impression they can hide in cyberspace,” said Waldemar Rodriguez, Special Agent in Charge of HSI El Paso. “HSI has the tools and training to identify, arrest and help get these individuals out of our society.”
This case was investigated by the Immigration & Customs Enforcement (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Ian Hanna 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.
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Mexican Businessman Sentenced to Federal Prison for Role in Los Zetas Money Laundering Scheme and BriberyRead the Press Release
In Austin, 55-year-old Veracruz, Mexico businessman Francisco Antonio Colorado-Cessa (aka “Pancho”), was sentenced to 20 years in federal prison for laundering Los Zetas drug proceeds and attempting to bribe a federal judge announced United States Attorney Richard L. Durbin, Jr., FBI Special Agent in Charge Christopher Combs and Internal Revenue Service Criminal Investigation Special Agent in Charge William Cotter.
In addition to the prison term, U.S. District Judge Donald E. Walter ordered that Colorado-Cessa forfeit to the U.S. Government $60 million in U.S. Currency and property—proceeds seized by authorities involved in the money laundering scheme—including two planes and five bank accounts.
In December 2015, a federal jury in Austin convicted Colorado-Cessa, the owner of ADT Petroservicios, an oil services company in Mexico doing business with the Mexican National Oil Company PEMEX, of one count of conspiracy to commit money laundering. The conspiracy charge centered on a scheme to launder millions of dollars in Los Zetas drug distribution proceeds through purchasing, training, breeding and racing American quarter horses in the United States. Testimony during that trial revealed a shell game by Colorado Cessa, a close associate of the Zetas drug cartel’s top leaders including Miguel Angel Trevino Morales (aka “Z-40”), Oscar Omar Trevino Morales (aka “Z-42”), and others involving straw purchasers and transactions worth millions of dollars in New Mexico, Oklahoma, California and Texas to disguise the source of the drug money and make the proceeds from the sale of quarter horses or their race winnings appear legitimate.
Over 400 quarter horses seized by federal authorities in June 2012 as part of the above mentioned money laundering operation have been sold for approximately $12 million. One of the seized horses, Tempting Dash, winner of the Dash for Cash at Lone Star Park race track in Grand Prairie, TX, in October 2009, sold at an auction for a record $1.7 million in November 2013.
In January 2016, a separate federal jury found Colorado-Cessa guilty of one count of conspiracy to bribe a public official and one substantive count of bribery, by offer or promise, of a public official. Evidence during trial revealed that Colorado-Cessa and others conspired in 2013 to pay a $1.2 million bribe to a federal judge in order to secure a reduced sentence for Colorado-Cessa in the above-mentioned money laundering case. According to court records, at no time before or during this investigation was the federal judge involved in the alleged criminal activity.
“Today’s resentencing of Francisco Colorado-Cessa to 20 years in prison is confirmation that the American public is steadfast in their conviction that he was properly found guilty of money laundering and bribery the first time,” said IRS Criminal Investigation Special Agent in Charge William Cotter, San Antonio Field Office. “Even with a second trial, the jury quickly came to the same conclusion – guilty. IRS Criminal Investigation was proud to be part of the law enforcement team that brought this criminal to justice.”
“The sentence handed down today ends years of litigation, and imposes significant punishment upon the defendant. The FBI appreciates the hard work and dedication of all the prosecutors and agents who have handled this important case, which demonstrates our collective commitment to protect the United States from the violence and corruption associated with Mexican drug cartels,” stated FBI Special Agent in Charge Christopher Combs, San Antonio Division.
This investigation was conducted by agents with the Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation and the Drug Enforcement Administration with assistance from the United States Marshals Service, Immigration and Customs Enforcement Homeland Security Investigations (ICE-HSI) and U.S. Border Patrol. Other judicial districts involved in this matter include the Western District of Oklahoma, Central District of California, Southern District of Texas, District of New Mexico and the U.S. Department of Treasury’s Office of Foreign Assets Control (OFAC).
Jury Finds Mexican Businessowner Guilty in Stolen Identity Refund Fraud CaseRead the Press Release
In El Paso today, a federal jury convicted Elizabeth “Betty” Garcia de Nieto of Delicias, Chihuahua, Mexico, of her role in an income tax return scheme that resulted in more than $2.9 million in fraudulent refunds being issued by the IRS announced United States Attorney Richard L. Durbin, Jr., and Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge William Cotter.
Jurors 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.
“Garcia used false and fraudulent tax returns to steal from the IRS, and ultimately, from American taxpayers. Working from Mexico, she thought she was beyond the reach of U.S. justice. This verdict introduces her to the American justice system, and should serve notice on others that U.S. prosecutors and IRS criminal investigators will not stop at the border,” said U.S. Attorney Richard L. Durbin, Jr.
“Today’s guilty verdict for Elizabeth Garcia de Nieto demonstrates the power of the American judicial system when it comes to stealing from the United States Treasury,” said Special Agent in Charge William Cotter, IRS-CI San Antonio Field Office. “Despite the fact that Ms. Garcia lived in Mexico, IRS-CI special agents tracked the fraudulent IRS tax returns she filed and, because of our strong relationships with our international law enforcement partners, brought her to justice.”
Garcia faces up to 20 years in federal prison on each mail fraud charge; up to ten years imprisonment for conspiracy to defraud with respect to claims; up to five years imprisonment for conspiracy to defraud the United States; and, a mandatory two years imprisonment for each aggravated identity theft charge to run consecutive to any other term of imprisonment assessed. Garcia also faces restitution to the United States to be determined at sentencing.
Prior to jury selection, 38-year-old co-defendant Christina Perez Altamirano of Oklahoma City, OK, pleaded guilty to conspiracy to commit mail fraud prior. Garcia and Perez remain in federal custody pending sentencing. No sentencing dates have been scheduled.
Two other co-defendants--42-year-old Rodolfo Ramirez-Estrada of El Paso, and 35-year-old Alberto Altamirano Armendarie of Montgomery, AL— remain in custody awaiting trial on two counts of conspiracy to defraud the U.S. No trial date has been set for Ramirez-Estrada and Altamirano.
This case was investigated by special agents with the Internal Revenue Service-Criminal Investigation, Homeland Security Investigations 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.
Jury Finds Mexican Businessowner Guilty in Stolen Identity Refund Fraud CaseRead the Press Release
In El Paso today, a federal jury convicted Elizabeth “Betty” Garcia de Nieto of Delicias, Chihuahua, Mexico, of her role in an income tax return scheme that resulted in more than $2.9 million in fraudulent refunds being issued by the IRS announced United States Attorney Richard L. Durbin, Jr., and Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge William Cotter.
Jurors 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.
“Garcia used false and fraudulent tax returns to steal from the IRS, and ultimately, from American taxpayers. Working from Mexico, she thought she was beyond the reach of U.S. justice. This verdict introduces her to the American justice system, and should serve notice on others that U.S. prosecutors and IRS criminal investigators will not stop at the border,” said U.S. Attorney Richard L. Durbin, Jr.
“Today’s guilty verdict for Elizabeth Garcia de Nieto demonstrates the power of the American judicial system when it comes to stealing from the United States Treasury,” said Special Agent in Charge William Cotter, IRS-CI San Antonio Field Office. “Despite the fact that Ms. Garcia lived in Mexico, IRS-CI special agents tracked the fraudulent IRS tax returns she filed and, because of our strong relationships with our international law enforcement partners, brought her to justice.”
Garcia faces up to 20 years in federal prison on each mail fraud charge; up to ten years imprisonment for conspiracy to defraud with respect to claims; up to five years imprisonment for conspiracy to defraud the United States; and, a mandatory two years imprisonment for each aggravated identity theft charge to run consecutive to any other term of imprisonment assessed. Garcia also faces restitution to the United States to be determined at sentencing.
Prior to jury selection, 38-year-old co-defendant Christina Perez Altamirano of Oklahoma City, OK, pleaded guilty to conspiracy to commit mail fraud prior. Garcia and Perez remain in federal custody pending sentencing. No sentencing dates have been scheduled.
Two other co-defendants--42-year-old Rodolfo Ramirez-Estrada of El Paso, and 35-year-old Alberto Altamirano Armendarie of Montgomery, AL— remain in custody awaiting trial on two counts of conspiracy to defraud the U.S. No trial date has been set for Ramirez-Estrada and Altamirano.
This case was investigated by special agents with the Internal Revenue Service-Criminal Investigation, Homeland Security Investigations 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.
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San Antonio Businessman Sentenced to 14 Years in Federal Prison for Multi-Million Dollar Investment ScamRead the Press Release
In San Antonio today, 54-year-old Armando Jesus Hernandez Leal of Shavano Park, TX, was sentenced to 170 months in federal prison in connection with a multi-million dollar investment fraud scam announced United States Attorney Richard Durbin, Jr., FBI Special Agent in Charge Christopher Combs, San Antonio Division and Internal Revenue Service-Criminal Investigation Special Agent in Charge William Cotter.
In August 2015, Hernandez pleaded guilty to a federal money laundering charge. By pleading guilty, Hernandez admitted responsibility for managing an estimated $80 million investment portfolio of a Mexican businessman and his family from 2005 to 2014, but had not invested his clients’ money like he had agreed. Hernandez spent their money to purchase homes, planes and other assets for his personal use.
In addition to the prison term, Senior U.S. District Judge David A. Ezra ordered Hernandez to pay restitution to his victims in the amount of $25,434,939.53 and be placed on supervised release for a period of three years after completing his prison term.
“The defendant’s investment scheme represented one of the deepest betrayals of trust and friendship, committed for sheer greed to finance his lavish and extravagant lifestyle. Moreover, the devastating financial losses suffered by the victims were not inherited wealth; rather, they were the result of a family’s hard work and sacrifice, over several generations,“ said FBI Special Agent in Charge Christopher Combs.
“Today’s sentencing of Armando Hernandez Leal should be a reminder to those individuals who are looking for financial advice. You should take as much care in choosing this person or company as you would in choosing a doctor or a lawyer,” said Special Agent in Charge William Cotter of the Internal Revenue Service - Criminal Investigation, San Antonio Field Office. “Mr. Hernandez Leal’s decision to use his investors’ money to line his own pockets is a serious offense and the punishment must be as serious as the crime.”
This investigation was conducted by special agents from the FBI and the Internal Revenue Service-Criminal Investigation. Assistant United States Attorneys Russ Leachman and Greg Surovic prosecuted this case on behalf of the Government.
20 Arrested and Charged Federally in Connection with Drug Trafficking in Central TexasRead the Press Release
Today, federal, state and local authorities arrested 20 individuals in connection with a methamphetamine trafficking operation in central Texas announced United States Attorney Richard L. Durbin, Jr., Drug Enforcement Administration Special Agent in Charge Joseph M. Arabit, Houston Division, and Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division.
A federal grand jury indictment, returned in Waco and unsealed today, charges 17 of those arrested with either conspiracy to distribute a controlled substance or distribution of a controlled substance. Other charges contained in the indictment include use of a communication device (cell phone) in furtherance of a drug trafficking crime; and, possession of a firearm during a drug trafficking crime. The indictment alleges that the defendants have distributed controlled substances, including methamphetamine, cocaine and marijuana, in the Austin/Temple/Killeen areas since January 2013.
Defendants who are charged in this indictment include:
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Ramon Rodriguez, Jr. (aka “Bacon”), age 30, of Temple, TX, 500 grams or more of methamphetamine, cocaine, marijuana;
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Elias Mendoza (aka “Big E”), age 35, of Temple, 500 grams or more of methamphetamine, cocaine, marijuana;
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Eliodoro Denova Lopez, age 28, of Pflugerville, TX, 500 grams or more of methamphetamine, cocaine, marijuana;
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Joel Jaimes Denova, age 30, of Austin, TX, 500 grams or more of methamphetamine, cocaine, marijuana;
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Gabriel Rangel, age36, of Cameron, TX, 50 grams or more of methamphetamine;
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Jose Salomon, age 29, of Cameron, marijuana;
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Kenneth Montgomery (aka “Wege”) , age 57, of Cameron, cocaine;
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Nora Tijerina, age 35, of Temple, 500 grams or more of methamphetamine;
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Oscar Rodriguez, age 34, of Cameron, marijuana;
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Thomas Lee, age 30, of Temple, marijuana;
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Atilano Felipe Garcia, age 33, of Temple, less than 50 grams of methamphetamine;
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Crystal Beck Diggs, age 36, of Belton, TX, less than 50 grams of methamphetamine;
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Douglas Junior Taylor, age 37, of Temple, cocaine;
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Jonathan Salazar, age 29, of Cameron, 50 grams or more of methamphetamine;
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Kevin Kuehnle, age 50, of Killeen, less than 50 grams of methamphetamine;
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Tawuan Stewart (aka “Gator”), age 37, of Temple, cocaine; and,
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Rodney Jerome, age 46, of Temple, less than 50 grams of methamphetamine;
The indictment also charges Ramon Rodriguez, Elias Mendoza, Eliodoro Denova Lopez, Joel Jaimes Denova and Thomas Lee with one count of using a cell phone in furtherance of a drug trafficking crime; and, Jose Salomon with one count of possession of a 12 gauge shotgun in furtherance of a drug trafficking crime.
Upon conviction of the drug trafficking charge: Ramon Rodriguez, Mendoza, Lopez, Denova, and Tijerina face between ten years and life in federal prison; Rangel, Rollins, Salazar and Arthur face between five and 40 years in federal prison; Diggs, Garcia, Montgomery, Stewart, Kuehnle, Jerome, and Taylor face up to 20 years in federal prison; and, Salomon, Oscar Rodriguez and Lee face up to five years in federal prison based on their involvement, drug type and drug amount involved. Ramon Rodriguez, Mendoza, Lopez, Denova and Lee face up to four years in federal prison upon conviction of the use of a cell phone during a drug trafficking crime. Salomon faces five years in federal prison upon conviction for possession of a firearm during a drug trafficking crime.
In addition to those named above, authorities arrested three other Temple residents today. They are: Jerry Alexander, age 39; Carlos Brown, age 41; and, T.J. Olivarri, age 28.
Alexander is charged in a separate, but related, federal indictment with one count of possession of a firearm by a convicted felon. Allegedly, on August 18, 2015, Alexander was in possession of .380 caliber pistol. Alexander’s criminal history revealed three Bell County convictions—cocaine possession in 2000; cocaine possession in 2006; and, evading arrest in 2014. Upon conviction, he faces up to ten years imprisonment.
Olivarri is charge by a federal criminal complaint with making a false statement during the acquisition of a firearm. According to the affidavit, on January 8, 2016, Olivarri provided a false address on the ATF Form 4473 when purchasing a 9mm pistol from a local firearms dealer. Upon conviction, Olivarri faces up to five years in federal prison.
Brown is charged by a federal criminal complaint with one count of possession of a firearm by a convicted felon. According to the affidavit, on March 10, 2016, Brown was found in possession of a .40 caliber handgun. His criminal history reveals a 2008 felony conviction in Bell County for Tampering or Fabricating Physical Evidence. Upon conviction, he faces up to ten years imprisonment.
During this investigation, authorities seized approximately two pounds of “crystal” methamphetamine, several ounces of heroin, approximately ½ pound of cocaine, several pounds of marijuana; approximately $45,000 in U.S. Currency; and between 10-15 firearms. Previously, authorities have seized approximately one kilogram of “crystal” methamphetamine and smaller amounts of cocaine and marijuana.
All of the defendants remain in federal custody. Detention hearings are expected to occur over the next two weeks before U.S. Magistrate Judge Jeffrey C. Manske in Waco.
It is important to note that a criminal complaint is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
This case resulted from an investigation conducted by the DEA and the FBI together with the Texas Department of Public Safety, Temple Police Department, United States Marshals Service, Texas Department of Criminal Justice Office of Inspector General and the Bell County Task Force. Assistant United States Attorneys Stephanie Smith-Burris and Chris Blanton are prosecuting this case on behalf of the Government.
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El Paso Man Sentenced to 20 Years in Federal Prison for Receipt and Distribution of Child PornographyRead the Press Release
In El Paso today, 35-year-old David Aaron Diaz was sentenced to 20 years in federal prison for receipt and distribution of child pornography announced United States Attorney Richard L. Durbin, Jr., and Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez, El Paso Division.
In addition to the prison term, Senior United States District Judge David Briones ordered that Diaz be placed on supervised release for ten years after completing his prison term.
On September 15, 2015, Diaz pleaded guilty to one count of receipt and distribution of child pornography. By pleading guilty, Diaz admitted that he received and was in possession of pictures containing images of the sexual exploitation of children. Diaz had over 130,000 files containing child pornography in his possession.
Diaz has remained in federal custody since his arrest by HSI agents on April 10, 2015.
"This sentence serves as a reminder of the gravity of this crime," said Waldemar Rodriguez, Special Agent in Charge of HSI - El Paso. "It’s also a testament to the dedicated HSI special agents who aggressively investigate these pedophiles, bring them out of the shadows, and ensure they receive the punishment they deserve.”
This case was investigated by the Immigration & Customs Enforcement (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Ian Hanna prosecuted this case on behalf of the government.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and 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.
Woman Sentenced for Stealing Veterans’ BenefitsRead the Press Release
In San Antonio today, 58-year-old Cornelia V. Hurling was sentenced to 14 months in federal prison for her role in misappropriating veterans’ benefits announced United States Attorney Richard L. Durbin, Jr.
In addition to the prison term, Senior United States District Judge David A. Ezra ordered that Hurling pay $141,734.22 restitution and be placed on supervised release for a period of three years after completing her prison term.
On September 16, 2015, Hurling pleaded guilty before United States Magistrate Judge John W. Primomo to one count of misappropriation by a Veterans Affairs (VA) fiduciary. By pleading guilty, Hurling admitted that from January 2008 to September 2013, having been appointed as a VA fiduciary with responsibilities to receive and manage money for the benefit of veterans who were incompetent or incapable of handling their own affairs, Hurling misappropriated approximately $141,734.22 of the veterans’ benefits and instead used that money for her own benefit.
This investigation was conducted by the Department of Veterans Affairs-Office of Inspector General. Assistant United States Attorney Thomas P. Moore prosecuted this case on behalf of the Government.
Final Barrio Azteca Member in El Paso Sentenced to Federal Prison on RICO, Drug Trafficking and Money Laundering ChargesRead the Press Release
In El Paso today, 40-year-old Barrio Azteca member Roberto Meza was sentenced to 120 months in federal prison for his role in a racketeering enterprise. Meza was the 17th and final defendant to be sentenced to federal prison as a result of this investigation.
That announcement was made today by United States Attorney Richard L. Durbin, Jr., Federal Bureau of Investigation Special Agent in Charge Douglas E. Lindquist, and Homeland Security Investigations Special Agent in Charge Waldemar Rodriguez.
On August 21, 2015, Meza pleaded guilty to one count of conspiracy to violate the Racketeering Influenced Corrupt Organization (RICO) statute, one count of conspiracy to possess with intent to distribute a controlled substance, and one count of money laundering.
According to court records, from August 1, 2010, to September 10, 2014, the members of this organization conducted their affairs through a pattern of racketeering to include murder, attempted murder, extortion, assault, and drug trafficking.
Other defendants sentenced in this investigation include:
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Juan Pablo Espino, age 38 – sentenced to 299 months imprisonment; fined $2,000 after pleading guilty to RICO conspiracy and money laundering charges;
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Fernando Madrid, age 42 – sentenced to 110 months imprisonment; fined $2,000 after pleading guilty to RICO conspiracy charge;
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Raul Lopez, age 35 – sentenced to 120 months imprisonment; fined $2,000 after pleading guilty to RICO conspiracy charge;
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Manuel Minjares, age 55 -- sentenced to 300 months imprisonment; fined $2,000 after pleading guilty to RICO conspiracy charge;
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Eugene Lozano, age 44 – sentenced to 120 months imprisonment; fined $2,000 after pleading guilty to RICO conspiracy charge;
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Rigoberto Alvarado-Mendez, age 42 – sentenced to 90 months imprisonment; fined $2,000 after pleading guilty to the RICO conspiracy charge;
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Gabriel Aldana, age 44 – sentenced to 90 months imprisonment; fined $2,000 after pleading guilty to the RICO conspiracy charge;
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Richard Rene Espino, age 35 – sentenced to 120 months imprisonment; fined $2,000 after pleading guilty to the RICO conspiracy charge;
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Christopher Ytuarte, age 42 – sentenced to 120 months imprisonment; fined $2,000 after pleading guilty to the RICO conspiracy and money laundering charges;
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Rito Miguel Alvarez, age 37– sentenced to 240 months imprisonment; fined $2,000 after pleading guilty to the RICO conspiracy charge;
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Ramon Sanchez, age 49 – sentenced to 120 months imprisonment; fined $2,000 after pleading guilty to the RICO conspiracy charge;
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Hector Bernal, age 46 – sentenced to 110 months imprisonment; fined $2,000 after pleading guilty to the RICO conspiracy charge;
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Jose Angel Barrios, age 45 – sentenced to 240 months imprisonment; fined $2,000 after pleading guilty to the RICO conspiracy and Murder in Aid of Racketeering charges;
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Eddie Mendoza, age 32 – sentenced to 110 months imprisonment; fined $2,000 after pleading guity to the RICO conspiracy charge;
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Barbara Rodriguez, age 36 – sentenced to one year imprisonment followed by three years of supervised release after pleading guilty to the RICO conspiracy and drug distribution conspiracy charges; and,
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Juan Carlos Nunez, age 24 – sentenced to 60 months imprisonment; fined $2,000 after pleading guilty to the RICO conspiracy charge.
“As a result of these sentencings, the Barrio Azteca criminal enterprise was held accountable for three gang related murders and the principal Barrio Azteca leaders were removed from the streets of El Paso. The FBI will continue to investigate criminal enterprise groups in the El Paso Area of Responsibility to maintain safety in the community,” stated FBI Special Agent in Charge Douglas E. Lindquist.
Waldemar Rodriguez, Special Agent in Charge of HSI El Paso, said, “This case exemplifies the effectiveness of law enforcement joining forces to protect our community from violent gangs. This sentence makes clear that HSI will not allow thugs, who think they are above the law, to rule our streets. We will continue to work with our law enforcement partners and the community at large to bring criminals to justice.”
This case resulted from an investigation led by the FBI El Paso - Safe Streets Gang Task Force, and the El Paso Police Department, with significant assistance by the El Paso Sheriff’s Office, Texas Department of Public Safety, Drug Enforcement Administration (DEA), Homeland Security Investigations (HSI), U.S. Customs and Border Protection (CBP), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and several other law enforcement agencies.
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San Antonio Doctor Found Guilty of Failure to Pay Withholding Taxes and Tax EvasionRead the Press Release
Fifty-nine-year old Anthony P. Sertich, Jr., faces up to 55-years in federal prison after a jury in San Antonio convicted him today of ten counts of failure to truthfully account for and pay withholding taxes and one count of tax evasion, announced United States Attorney Richard L. Durbin, Jr., and Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge William Cotter.
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 (hereinafter AAFPST) and South Texas Otorhinolaryngology, PA (hereinafter STO). During the calendar years 2008 through 2010, Sertich failed to pay over $226,000.78 to the Internal Revenue Service 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 and ultimately, all other taxpayers. He withheld money from his employees’ pay, which he applied to his own use, and abused the bankruptcy process to defeat possible collection efforts. Today’s verdict holds him accountable for his criminal conduct,” said U.S. Attorney Durbin.
“The jury’s guilty verdict of Dr. Anthony P. Sertich Jr. represents IRS Criminal Investigation's continued commitment to identifying and prosecuting those individuals who evade the tax laws,” said Special Agent in Charge William Cotter of the Internal Revenue Service - Criminal Investigation, San Antonio. “The tax law is very clear – every employer is responsible for withholding employment taxes from the salaries of their employees. Those employers who do not withhold employment taxes are breaking the law.”
Sertich remains on bond pending sentencing set for May 23, 2016.
This case was investigated by special agents with the Internal Revenue Service-Criminal Investigation. Assistant United States Attorney William R. Harris prosecuted this case on behalf of the Government.
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Midland Woman Sentenced to Five Years in Federal Prison for Wire Fraud Scheme and Obstructing JusticeRead the Press Release
In Midland today, 55-year-old former federal fugitive Judy Kay Fryar was sentenced to five years in federal prison for her role in a wire fraud scheme that caused an estimated $140,000 loss to her employer and for obstructing justice announced United States Attorney Richard L. Durbin, Jr., FBI Special Agent in Charge Douglas E. Lindquist, El Paso Division, United States Marshal Robert Almonte and Midland Police Chief Price Robinson.
In addition to the prison term, United States District Judge Robert A. Junell ordered that Fryar pay $138,589 restitution and be placed on supervised release for a period of three years after completing her prison term.
On December 9, 2015, Fryar pleaded guilty to one count of wire fraud and one count of obstruction of justice. By pleading guilty, Fryar admitted that from October 2009 to June 2011, she devised a scheme to embezzle money including monthly lease payments owed to her employer, SKP Holdings in California.
According to court records, Fryar, as the former onsite property manager for the West Park Apartments in Midland, repeatedly accepted cash payments from tenants and used those monies for her own personal benefit. Fryar also altered various tenant lease payments in the company’s online property management records in an attempt to conceal her scheme. Fryar’s scheme was revealed in 2011 when an owner who was conducting an on-site visit encountered a West Park Apartment tenant attempting to make a rental payment with cash.
According to the factual basis filed in this case, Fryar obstructed justice by falsely fabricating a medical condition to obtain favor, sympathy and ten consecutive continuances between January 2013 and July 2015 for jury selection and trial on the above mentioned wire fraud charge. The Court reset jury selection and trial dates based on materially false representations that Fryar had been diagnosed with Stage 4 Lung Cancer and was undergoing extensive radiation, chemotherapy and other experimental treatments. According to Fryar, her alleged cancer progressed to the point that she no longer had sufficient mental and physical abilities to effectively participate in a trial. During this time, Fryar forged two letters and medical records from M.D. Anderson Cancer Center to support her materially false representations. Prior to the filing of her first of ten continuance motions, on August 30, 2012, M.D. Anderson Cancer Center notified Fryar that she was negative for carcinoma, melanoma and sarcoma, thus, Fryar did not require cancer treatment and/or any other related services at M.D. Anderson Cancer Center.
On July 21, 2015, Fryar was arrested by the U.S. Marshals Lone Star Fugitive Task Force at her family’s lake house in Coke County following the issuance of a bench warrant after she failed to appear in court for a pre-trial hearing earlier in the month. She has remained in custody since her arrest.
This investigation was conducted by the Federal Bureau of Investigation, Midland Police Department Fraud Unit and the United States Marshals Service. Assistant United States Attorneys Yvonne Gonzalez and Stanley Serwatka prosecuted this case on behalf of the Government.
15 Arrested on Federal Drug Trafficking and Money Laundering Indictment in the Western District of Texas as Part of Operation Dream CatcherRead the Press Release
Fifteen individuals are in custody today charged federally with participating in a methamphetamine distribution and money laundering scheme announced United States Attorney Richard L. Durbin, Jr., and Drug Enforcement Administration Special Agent in Charge Joseph M. Arabit, Houston Division.
A federal grand jury indictment, returned in Austin and unsealed today, charges the defendants with one count of conspiracy to distribute and possess with intent to distribute methamphetamine. Arrested today include:
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Osiel Bautista, age 29, of Austin, TX, 500 grams or more;
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Luis Loza, age 24, of Austin, 500 grams or more;
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Alberto Munoz, age 29, an undocumented alien arrested in Austin, 500 grams or more;
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Alex Perez, age 25, an undocumented alien arrested in Austin, 500 grams or more;
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Adan Martinez, age 30, of Austin, 50 grams or more;
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Marty Lopez, age 26, of Alice, TX, 50 grams or more;
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Rickey Lincoln, age 30, of Austin, 50 grams or more;
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Jesus Vallejo, age 30, undocumented alien arrested in Austin, 50 grams or more;
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Eric Manning, age 34, of Waco, 50 grams or more;
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Aaron Bravo, age 39, of Granite Shoals, TX, 50 grams or more; and,
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Samuel Chavez, age 25, undocumented alien arrested in Austin, 50 grams or more.
Four defendants charged in the indictment were already in custody prior to today. They are:
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Raul Vallejo, age 34, an undocumented alien residing in Austin, 500 grams or more;
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Pedro Gomez, age 21, of Austin, 50 grams or more;
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Eden Gonzalez, age 25, an undocumented alien residing Austin, 50 grams or more; and,
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Antonio Tavera Vera, age 31, an undocumented alien, 50 grams or more.
The indictment also charges Bautista, Loza, Munoz, Raul Vallejo, and Perez with one count of money laundering. According to the indictment, since September 2014, the defendants have conspired to distribute methamphetamine across the Austin area.
During today’s arrests, authorities seized approximately ten kilograms of methamphetamine; approximately $5,000 U.S. Currency; and, eight firearms including an SKS rifle with four magazines and ammunition. Previously, authorities have seized approximately ten kilograms of methamphetamine and an estimated $155,000 in criminally derived assets attributed to these defendants.
“Methamphetamine is a vicious poison that has caused horrific and long-term damage to the quality of life in too many of our communities,” said DEA Special Agent in Charge Joseph M. Arabit. “These arrests, as part of Operation Dream Catcher, conclude an 18-month investigation and underscore DEA’s continued commitment to working with our Federal and local law enforcement partners to disrupt and dismantle drug trafficking organizations that negatively impact our neighborhoods and families.”
All of the defendants remain in federal custody. Upon conviction, Bautista, Loza, Munoz, Raul Vallejo and Perez face between ten years and life in federal prison on the drug trafficking conspiracy charge. The other defendants face between five and 40 years in federal prison upon conviction of the drug trafficking conspiracy charge. Bautista, Loza, Munoz, Raul Vallejo and Perez face up to 20 years in federal prison upon conviction of the money laundering conspiracy charge.
It is important to note that a criminal complaint is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
This case resulted from an investigation conducted by the Drug Enforcement Administration High Intensity Drug Trafficking Area (HIDTA) Task Force. Agencies participating in the HIDTA Task Force include: Federal Bureau of Investigation (FBI), Homeland Security Investigations (HSI), United States Marshals Service, Austin Police Department, Cedar Park Police Department, Georgetown Police Department, Round Rock Police Department, Granite Shoals Police Department, Bastrop County Sheriff’s Office, Hays County Sheriff’s Office, Travis County Sheriff’s Office, Williamson County Sheriff’s Office, Texas Department of Public Safety, Texas National Guard and the Travis County District Attorney’s Office. Assistant United States Attorneys Dan Guess and Matt Harding are prosecuting this case on behalf of the Government.
Other arrests and federal charges related to Operation Dream Catcher have taken place today in the Southern District of Texas and the Eastern District of Texas.
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San Antonio Mother and Son Charged in Million Dollar Bank Fraud and Aggravated Identity Theft Scheme Involving Relative’s ChurchRead the Press Release
In San Antonio, a mother and son have surrendered to federal authorities based on an alleged million dollar fraud scheme involving a local church owned by a different family member announced United States Attorney Richard L. Durbin, Jr., U.S. Secret Service Special Agent in Charge Lee Dotson, and Internal Revenue Service-Criminal Investigation Special Agent in Charge William Cotter.
A 12-count federal grand jury indictment, returned last week, charges 23–year-old Brennan R. Diaz and 44–year-old Deborah A. Diaz with one count of conspiracy to commit bank fraud and one count of money laundering, The indictment also charges Brennan Diaz with four substantive counts of bank fraud, two counts of aggravated identity theft and two counts of money laundering. Deborah Diaz is charged with two substantive counts of bank fraud and one count of aggravated identity theft.
According to the indictment, between February 2015 and October 2015, the defendants conspired to defraud the La Obra Milagrosa Church (aka “The Miracle Center Church”) of more than $1 million. Both defendants were associated with the TMC Church which was owned by Brennan’s grandfather. Neither defendant had authority to sign TMC Church checks. The indictment alleges that Brennan Diaz wrote, and fraudulently forged his grandfather’s signature on, approximately 50 TMC Church business checks made payable to himself. Defendant Deborah Diaz allegedly forged her father’s signature on three TMC Church business checks made payable to herself. The total amount of those fraudulent checks is estimated to be $1,094,100.00.
Upon conviction, bank fraud calls for up to 30 years in federal prison; money laundering calls for up to ten years in federal prison; conspiracy to commit bank fraud calls for up to 30 years in federal prison; and, aggravated identity theft calls for mandatory two years in federal prison. Brennan Diaz surrendered to federal authorities this morning. He was released this afternoon on a $30,000 bond pending trial. Deborah Diaz surrendered to authorities on Friday. She is currently on a $50,000 unsecured bond pending trial.
This joint investigation is being conducted by the Financial Crimes Section of the U.S. Secret Service South Texas Regional Task Force and the Internal Revenue Service-Criminal Investigation. Other agencies involved in the Task Force include the San Antonio Police Department, Bexar County Sheriff’s Office, Bexar County District Attorney’s Office and Texas Department of Public Safety-Criminal Investigations Division. Assistant United States Attorney Thomas P. Moore is prosecuting this case on behalf of the Government.
Federal Jury in El Paso Convicts Mexican Businessman in Pyramid SchemeRead the Press Release
A federal jury in El Paso convicted self-proclaimed licensed investment broker Roberto Trinidad Del Carpio Frescas of carrying out a Ponzi scheme that resulted in an estimated minimum $15 million loss announced United States Attorney Richard L. Durbin, Jr., U.S. Secret Service Special Agent in Charge Lee Dotson and El Paso Police Chief Greg Allen.
Late Friday afternoon, jurors convicted Del Carpio, age 39, of Chihuahua, MX, of 24 counts of wire fraud and ten counts of money laundering.
Evidence presented during trial revealed that the defendant held himself out to have superior knowledge and ability as an investor in stocks, bonds, futures in oil, gas, precious metals and currency. Though he was not licensed in the state of Texas as a dealer, or registered as an investment adviser, Del Carpio formed several companies in Texas including SMI International Institute Corporation (aka Stock Market Investment), Del Carpio Trading Institute LLC, and one in the Cayman Islands, Del Carpio Holdings, to facilitate his scheme.
From August 2010 until January 2012, Del Carpio conspired with others to collect money from over 100 known investors in Mexico and the United States. Del Carpio pocketed most all of the funds he collected though he did pay minimal amounts of money to “early” investors as a return on their investment and to encourage his victims to invest more of their money with him.
Del Carpio faces up to 20 years in federal prison for wire fraud and up to ten years in federal prison for money laundering.
Del Carpio has remained in federal custody since his arrest in February 2015. Sentencing is expected to occur within the next 60 days before United States District Judge David C. Guaderrama in El Paso.
Del Carpio’s co-defendant, 60-year-old David Brian Binder of Pittsburg, PA, is charged by indictment with one count of accessory after the fact and one count of wire fraud. Binder, who is currently out on bond, is scheduled for jury selection and trial on April 18, 2016, before Judge Guaderrama in El Paso. Upon conviction, Binder faces up to 20 years in federal prison for wire fraud and up to ten years in federal prison for accessory after the fact.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. Binder is presumed innocent until proven guilty in a court of law.
If you feel you may have been victimized as a result of the above mentioned scheme, please contact the U.S. Secret Service at (915) 532-2144 or the El Paso Police Department.
This investigation was conducted by agents with the U.S. Secret Service and the El Paso Police Department. Assistant United States Attorneys Ian Hanna and Stanley Serwatka are prosecuting this case on behalf of the Government.
San Antonio Man Arrested and Charged in Alleged Laser Strike IncidentRead the Press Release
In San Antonio today, FBI agents arrested 24–year-old Christopher B. Evans for allegedly pointing a laser in the flight path of a helicopter announced United States Attorney Richard L. Durbin, Jr., and FBI Special Agent in Charge Christopher B. Combs, San Antonio Division.
Evans was charged in a one count federal indictment on February 17, 2016, of aiming a laser pointer at aircraft in flight. The indictment stems from an incident on the morning of October 27, 2015, when a local television news helicopter reported being struck by a laser north of the airport.
Upon conviction, the defendant faces up to five years in federal prison and a maximum $250,000 fine.
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 indictment resulted from an investigation 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.
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.
San Antonio Man and Woman Charged in Alleged Mail Theft and Financial Institution Fraud SchemeRead the Press Release
In San Antonio this week 31-year-old Michael McKinney had his initial appearance before U. S. Magistrate Judge Henry J. Bemporad on charges of possession of stolen mail, access device fraud, financial institution fraud and aggravated identity theft announced United States Attorney Richard L. Durbin, Jr., and U.S. Postal Inspection Service Team Leader Michael R. Martinez-Partida.
McKinney’s co-defendant, 30-year-old Jennifer Burns, had her initial appearance before Judge Bemporad on February 2, 2016. Burns is charged with possession of stolen mail, financial institution fraud and aggravated identity theft.
As alleged in the indictment, on or about June 28, 2015, McKinney and Burns were caught in possession of stolen mail, including stolen checks, from various San Antonio mailboxes. Prior to that date, the defendants utilized information from stolen mail, changed the payee name on stolen checks, and cashed the checks at various financial institutions using counterfeit drivers’ licenses.
Both defendants remain in custody. Upon conviction, McKinney and Burns each face up to 5 years in prison and a maximum $250,000 fine for the possession of stolen mail charge; each face up to 30 years in prison and a maximum $1,000,000 fine for the financial institution fraud charge; and each face a mandatory consecutive 2 years in prison and a $250,000 fine for the aggravated identity theft charge. In addition, McKinney faces up to 10 years in prison and a maximum $250,000 fine for the access device fraud charge.
“Theft of U.S. Mail is a serious offense and a violation of federal law. Postal Inspectors work vigorously to identify and bring to justice those responsible for committing this criminal act,” stated Team Leader Michael R. Martinez-Partida of the U.S. Postal Inspection Service in San Antonio.
If you believe you are a victim of mail theft, please contact the U.S. Postal Inspection Service at 1-877-876-2455 or at www.postalinspectors.uspis.gov to file a complaint.
Assistant United States Attorney Thomas P. Moore is prosecuting this case on behalf of the Government.
A criminal 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.
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Midland Man Found Guilty of Attempted Murder of Border Patrol AgentRead the Press Release
In Del Rio today, a federal jury found Carl Wayne Wiley guilty of attempted murder of a federal agent, announced United States Attorney Richard L. Durbin, Jr., Rodolfo Karisch, Del Rio Sector Chief Patrol Agent, U.S. Border Patrol, and Christopher Combs, Federal Bureau of Investigation (FBI) Special Agent in Charge of the San Antonio Division.
Wiley was found guilty of one count of attempting to kill one or more United States Border Patrol Agents who were engaged in the performance of their official duties, one count of assaulting, resisting, opposing, impeding, or interfering with one or more United States Border Patrol Agents using a deadly or dangerous weapon, and two counts of using and discharging a .45 caliber Ruger revolver during and in relation to the commission of the aforementioned crimes of violence.
According to court records, Wiley was wanted for Murder and Attempted Murder in Midland, TX and was fleeing prosecution. He was originally spotted by Border Patrol Agents in Sanderson, TX in the early morning hours of June 29, 2014. Wiley took agents on a high speed pursuit before crashing his vehicle. He fled on foot into the brush and avoided arrest by stealing an ATV, then a Ford F-350 pickup truck and several firearms from nearby ranches.
On June 30, 2014, an off-duty Comstock Border Patrol Agent observed the Ford F-350 truck traveling east on Highway 90 near the Comstock Border Patrol checkpoint. The vehicle suspiciously and abruptly turned around short of the checkpoint and proceeded west back toward Comstock, TX. Approximately four miles north of Comstock, an agent attempted to conduct a vehicle stop in order to investigate the suspicious activity. When the agent activated the emergency equipment, Wiley crashed through a ranch fence and continued driving further into the ranch. The vehicle came to a stop after colliding with a tree and Wiley absconded on foot into the brush. Wiley led responding agents on a foot pursuit, and when one agent was closing in on him, Wiley shot at him. Wiley continued to evade agents, shooting again at a group of agents as those agents honed in on his position. The agents were eventually able to surround Wiley and successfully apprehended him after a struggle.
“Wiley was a one-man crime wave crashing across the expanse of West Texas as he fled murder and attempted murder charges in Midland. It is a miracle he did not seriously injure any agents or citizens during his rampage. The agents who risked life and limb to catch him are to be commended for their courage and professionalism. This conviction should remove him from the street for some time to come,” stated United States Attorney Richard L. Durbin, Jr.
Wiley faces up to 20 years imprisonment each for the attempted murder charge and the assault charge. He faces a mandatory ten years for the use of a firearm during and in relation to the commission of a crime of violence. The defendant remains in custody pending sentencing, which is scheduled for June 6, 2016.
This case was investigated by special agents of the Federal Bureau of Investigation with assistance from the United States Border Patrol, Val Verde County Sheriff’s Office and the Midland Police Department. Assistant United States Attorneys Ralph Paradiso and Katherine Griffin prosecuted this case on behalf of the Government.
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Former UTSA Projects Manager Sentenced to Federal Prison for his Role in Bribery SchemeRead the Press Release
In San Antonio today, 43-year-old former University of Texas at San Antonio (UTSA) project manager James Paul Council was sentenced to 38 months in federal prison followed by three years of supervised release for his role in a bribery scheme announced United States Attorney Richard L. Durbin, Jr., and Special Agent in Charge Christopher Combs of the FBI’s San Antonio Division.
On January 14, 2014, Council, a former project manager in the Facilities Department at UTSA, pleaded guilty to one count of bribery. By pleading guilty, Council admitted to accepting $1,000 in U.S. Currency from individuals seeking to secure UTSA construction contracts worth more than $200,000.
Council’s co-defendants—50-year-old Alfredo Romero Gonzalez, owner of Power Source Electric, an electrical construction and repair business in San Antonio; 63-year-old Power Source Electric chief estimator and project manager Magin Villalon (a.k.a. “Buddy”); and, Villalon’s wife, 59-year-old Sarah Anne Luna—have all pleaded guilty to paying a bribe to Council in order to secure UTSA contracts. In addition to sentencing Council this morning, United States District Judge Orlando Garcia sentenced: Gonzalez to 22 months in federal prison followed by three years of supervised release; Villalon, to 37 months in federal prison followed by three years of supervised release; and, Luna to two years probation. Judge Garcia also ordered that Council, Villalon and Gonzalez jointly and severally pay restitution to UTSA in the amount of $71,000. Luna was ordered to pay $9,838.21 restitution to UTSA.
This case was investigated by special agents with the Federal Bureau of Investigation together with the San Antonio Police Department, UTSA Police Department, and UTSA auditors. Assistant United States Attorney James Blankinship prosecuted this case on behalf of the Government.
El Paso Federal Grand Jury Charges Two in Connection with Ammunition Smuggling SchemeRead the Press Release
This afternoon, a federal grand jury returned an indictment charging two El Paso residents for scheming to smuggle thousands of rounds of ammunition into the Republic of Mexico announced United States Attorney Richard L. Durbin, Jr., Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge William A. Temple, Dallas Field Division.
The three-count federal indictment charges Sofia Acosta de Caballero, age 34, and Edward Navarro, age 29, with one count of conspiracy to smuggle goods from the United States. Acosta is also charged with two substantive counts of smuggling goods from the United States. Navarro is also charged with one substantive count of smuggling goods from the United States.
The indictment alleges that from January 2015 until January 2016, the defendants conspired to purchase approximately 80,000 rounds of assorted caliber ammunition on the Internet with the understanding and purpose that this ammunition was to be exported to Mexico. The conspiracy charge also alleges that the defendants purchased several firearms with the understanding and purpose that these firearms were to be exported to Mexico.
On January 13, 2016, federal authorities at the Bridge of Americas Port of Entry in El Paso seized approximately 4,550 rounds of .38 caliber ammunition discovered inside a car being driven by Acosta. At the time, Acosta was also in possession of a Ruger Model Mini 14 magazine.
Acosta has remained in federal custody since January 13, 2016. Navarro is considered a fugitive.
Waldemar Rodriguez, special agent in charge of HSI El Paso, said HSI will continue to pursue those who present a threat to our national security. “HSI works aggressively to identify and investigate individuals tied to transnational criminal organizations who attempt to export weapons and ammunition,” said Rodriguez. “HSI and our law enforcement partners are committed to uphold the exportation laws of the United States to ensure that U.S. weapons don't end up in the wrong hands.”
William A. Temple, special agent in charge of the ATF Dallas Field Division, said, “The indictments rendered today are yet another successful example of law enforcement agencies collaborating to combat violent crime. ATF actively works alongside our law enforcement partners to provide investigative expertise and guidance in all firearms and ammunition related investigations.”
Upon conviction of the conspiracy charge, the defendants face up to five years in federal prison. Each substantive firearms charge calls for up to ten years in federal prison upon conviction.
This indictment resulted from an investigation conducted by the Homeland Security Investigations and the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the United States Customs and Border Protection. Assistant United States Attorneys Michael C. Williams and Steven Spitzer are prosecuting this case on behalf of the Government.
HSI encourages the public to report any suspicious activity through its toll-free Tip Line at 1-866-DHS-2-ICE or by completing its online tip form. Both are staffed around the clock by investigators. From outside the U.S. and Canada, callers should dial 802-872-6199. Hearing impaired users can call TTY 802-872-6196.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Federal Authorities Arrest Crystal City Officials and a Texas Businessman in Connection with a Bribery and Kickback SchemeRead the Press Release
This morning, authorities arrested five current and former Crystal City, TX, officials and a Texas businessman on federal bribery charges in a scheme involving city contracts announced United States Attorney Richard Durbin, Jr., and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
A federal grand jury indictment, returned yesterday and unsealed today, charges City Manager and City Attorney William James Jonas, III, age 54; Mayor Ricardo Lopez, age 40; Mayor Pro-Tem Rogelio Mata, age 43; City councilman Roel Mata, age 44, and former City Councilman Gilbert Urrabazo, age 45; and, Ngoc Tri Nguyen, age 38, with one count of conspiracy to commit bribery involving an entity receiving over $10,000 in federal funds. Jonas is also charged with three substantive federal programs bribery charges; the remaining defendants, with one substantive federal programs bribery charge each.
The indictment alleges that since February 2015, Jonas, Lopez, Rogelio Mata, Roel Mata and Urrabazo used their official positions to enrich themselves by soliciting and accepting bribes from persons seeking to do business in Crystal City. According to the indictment, Jonas managed the bribery scheme, in which a contractor provided bribes totaling more than $12,000 to Jonas, Rogelio Mata, Roel Mata, and Urrabazo, in exchange for their votes for a City contract. The indictment also alleges that Nguyen provided payment directly to Lopez, including $6,000, in exchange for various official acts from Lopez and Jonas. The indictment further alleges that Jonas proposed a kickback scheme to an attorney, in which that attorney would pay Jonas a portion of the legal fees paid by an entity seeking a contract with the City. In exchange for Jonas securing these bribes, Lopez, Rogelio Mata, Roel Mata, and Urrabazo allegedly voted to award Jonas a lucrative contract to serve as both City Manager and City Attorney.
“This case represents our continuing commitment to investigate and punish those who corrupt the process of fair and open government, and to root out the corrosive effect of government officials who sell their office and the public trust they hold for their personal gain,” stated United States Attorney Richard L. Durbin, Jr.
“While most public officials faithfully promote the interests of the communities they serve, today’s arrests should serve as a powerful reminder that officials who abuse their authority will be held accountable,” said FBI Special Agent in Charge Christopher Combs. “Public corruption is one of the most insidious crimes confronting our communities today. It contributes to the cynicism we are seeing from members of the public who often feel as though all politicians are corrupt and the government does not serve the needs of those citizens who can’t pay for access to their elected officials.”
“Public corruption erodes the trust that citizens place in government officials. We are glad to work together with our federal partners to investigate and arrest those who violate that trust,” stated San Antonio Police Chief William McManus.
Upon conviction, each defendant faces up to ten years in federal prison and up to a $250,000 fine. All of the defendants, with the exception of Jonas, Urrabazo and Nguyen, were arrested this morning in Crystal City without incident and taken to the federal courthouse in Del Rio for their initial appearance. Jonas and Urrabazo were arrested this morning in San Antonio. Nguyen was arrested this morning in Keller, TX.
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.
Five Individuals Arrested and Charged in Connection with a Fraudulent Multi-Million Dollar Income Tax Refund SchemeRead the Press Release
Federal authorities have arrested five individuals, including three sisters, indicted on federal charges in connection with 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.
A federal grand jury indictment returned in Austin and unsealed this week, charges the following defendants with one count of conspiracy to commit mail fraud:
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Natividad Mercado Medina, a 38–year-old Mexican national who formerly lived in Conroe, TX, and now resides in Atlanta, GA;
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Elizabeth Mercado Medina, a 39–year-old Mexican national who now resides in Atlanta, GA;
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Sofia Mercado Medina, a 36-year-old Mexican national, who now resides in Atlanta, GA;
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Bertin Sanchez Garcia, a 28–year-old Mexican national who resides in Georgetown, TX; and,
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Yajaira Limon Lopez, a 36-year-old Mexican national who resides in Houston.
According to the indictment, 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.
The indictment alleges that 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 Flores and Lopez had rented and maintained on behalf of the Medina sisters. The indictment alleges that since January 2014, more than 3,200 tax returns associated with the relevant post office boxes and residences controlled by the Medina sisters were filed with the IRS. The claimed refunds from the fraudulent ITIN returns amounted to more than $9 million.
Upon conviction, the defendants face up to 20 years in federal prison.
All of the defendants were arrested on Tuesday. The three Medina sisters remain in federal custody following their arrest in Atlanta. Garcia remains in federal custody following his arrest in Georgetown. Lopez remains in federal custody following her arrest in Houston. Detention hearings are expected to be held tomorrow for the Medina sisters in Atlanta and Lopez in Houston. Garcia’s detention hearing is scheduled for 9:00am on February 16, 2016, before United States Magistrate Judge Mark Lane in Austin.
This case was investigated by the Internal Revenue Service-Criminal Investigation together with the U.S. Postal Inspection Service. 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 defendants are presumed innocent until proven guilty in a court of law.
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Jury Convicts Defendant in Los Zetas Money Laundering Case of Conspiracy and Bribery ChargesRead the Press Release
A federal jury today convicted 55-year-old Veracruz, Mexico businessman Francisco Antonio Colorado-Cessa (aka “Pancho”), of attempting to bribe a federal judge announced United States Attorney Richard L. Durbin, Jr., Federal Bureau of Investigation Special Agent in Charge Christopher Combs and Internal Revenue Service-Criminal Investigation Special Agent in Charge William Cotter.
The jury, seated in Shreveport, Louisiana, found Colorado-Cessa, the owner of ADT Petroservicios, an oil services company in Mexico doing business with the Mexican National Oil Company PEMEX, guilty of one count of conspiracy to bribe a public official and one substantive count of bribery, by offer or promise, of a public official. Evidence during trial revealed that Colorado-Cessa and others conspired in 2013 to pay a $1.2 million bribe to a federal judge in order to secure a reduced sentence for Colorado-Cessa in a related money laundering case. According to court records, at no time before or during this investigation was the federal judge involved in the alleged criminal activity.
On March 12, 2014, Colorado-Cessa, his son, Francisco Agustin Colorado Cebado (aka “Panchito”), and his business partner, Ramon Segura Flores, all pleaded guilty to one count of conspiracy to bribe a federal judge. On July 22, 2014, visiting United States District Judge Donald E. Walter of the Western District of Louisiana sentenced Colorado Cebado and Segura Flores in Austin to a year and a day in federal prison and ordered them to pay a $10,000 fine for their roles in the scheme. On February 2, 2015, Judge Walter sentenced Colorado-Cessa in Austin to five years in federal prison. However, in October 2015, the U.S. 5th Circuit Court of Appeals reversed Colorado-Cessa’s conviction and sentence and remanded the case back to the District Court. On December 23, 2015, Judge Walter granted a defense motion for change of venue from Austin and ordered that jury selection and trial occur in Shreveport, LA.
In the related case, on December 10, 2015, a federal jury in Austin convicted Colorado-Cessa of one count of conspiracy to commit money laundering in connection with a scheme to launder millions of dollars in Los Zetas drug distribution proceeds through purchasing, training, breeding and racing American quarter horses in the United States. Testimony during that trial revealed a shell game by Colorado Cessa, a close associate of the Zetas drug cartel’s top leaders including Miguel Angel Trevino Morales (aka “Z-40”), Oscar Omar Trevino Morales (aka “Z-42”), and others involving straw purchasers and transactions worth millions of dollars in New Mexico, Oklahoma, California and Texas to disguise the source of the drug money and make the proceeds from the sale of quarter horses or their race winnings appear legitimate.
Over 400 quarter horses seized by federal authorities in June 2012 as part of the above mentioned money laundering operation have been sold for approximately $12 million. One of the seized horses, Tempting Dash, winner of the Dash for Cash at Lone Star Park race track in Grand Prairie, TX, in October 2009, sold at an auction for a record $1.7 million in November 2013.
As a result of both trial verdicts, Colorado-Cessa now faces up to 20 years in federal prison on the charge of conspiracy to commit money laundering; up to 15 years in federal prison for the charge of bribery by offer or promise; and, up to five years in federal prison for the charge of conspiracy to commit bribery. Colorado-Cessa remains in federal custody pending sentencing. No sentencing dates have been scheduled.
This investigation was conducted by agents with the Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation and the Drug Enforcement Administration with assistance from the United States Marshals Service, Immigration and Customs Enforcement Homeland Security Investigations (ICE-HSI) and U.S. Border Patrol. Other judicial districts involved in this matter include the Western District of Oklahoma, Central District of California, Southern District of Texas, District of New Mexico and the U.S. Department of Treasury’s Office of Foreign Assets Control (OFAC).
Houston Police Officer and Wife Plead Guilty to Transporting Undocumented AliensRead the Press Release
In Del Rio today, a Houston police officer and his wife pleaded guilty to transporting undocumented aliens announced United States Attorney Richard L. Durbin, Jr., Homeland Security Investigations Special Agent in Charge Shane Folden and U.S. Border Patrol Del Rio Sector Chief Patrol Agent Rodolfo Karisch.
Appearing before United States Magistrate Judge Collis White, 51-year-old Juan Carrillo and 42-year-old Rosa Lidia Carrillo of Cypress, TX, 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.
Both defendants remain on bond pending sentencing. Each defendant faces up to five years in federal prison and a maximum $250,000 fine. Sentencing is scheduled for 9:00am on June 28, 2016 in Del Rio before Judge Moses.
The case resulted from a joint investigation by the Homeland Security Investigations (HSI) in Eagle Pass and the U.S. Border Patrol. This case is being prosecuted by Assistant United States Attorneys Matthew Watters and Todd Keagle.
Las Vegas Man Sentenced to Four Years in Federal Prison for Aggravated Identity Theft and Theft of VA BenefitsRead the Press Release
In Waco today, 44-year-old Lawrence Annon Lee, III, of Las Vegas, NV, was sentenced to four years in federal prison for stealing approximately $43,000 in Department of Veterans Affairs (VA) benefits announced United States Attorney Richard L. Durbin, Jr.
In addition to the prison term, United States Magistrate Judge Jeffrey C. Manske ordered that Lee pay $42,912.78 restitution and be placed on supervised release for a period of three years after completing his prison term.
On December 3, 2015, Lee pleaded guilty to one count of theft of Government property and one count of aggravated identity theft. By pleading guilty, Lee admitted that between October and December in 2014, he used the name and social security number of an unsuspecting Bellmead, TX, resident to collect approximately $5,500 in monthly VA benefits Lee was not entitled to receive. Lee also admitted that in 2011, he fraudulently used his victim’s personal information to apply for and receive outpatient health care, prescriptions and prosthetics from the VA valued at approximately $28,000.
This case resulted from an investigation conducted by the Department of Veterans Affairs Office of Inspector General and the Bellmead Police Department. Assistant United States Attorney Mark Frazier prosecuted this case on behalf of the Government.
Former D’hanis State Bank President Sentenced to Federal PrisonRead the Press Release
In San Antonio today, a former D’Hanis State Bank (DSB) president Laurie Mayfield (aka “Laurie H. Scott”) was sentenced to two years in federal prison after admitting that she filed fraudulent bank regulating reports which overestimated the bank’s assets announced United States Attorney Richard L. Durbin, Jr., Special Agent in Charge Christopher Combs of the FBI’s San Antonio Division and U.S. Secret Service Special Agent in Charge Lee Dotson.
In addition to the prison term, United States District Judge Xavier Rodriguez ordered that Mayfield pay $817,892.32 restitution and be placed on supervised release for a period of three years after completing her prison term. Judge Rodriguez also ordered Mayfield to surrender to federal authorities on or before April 1, 2016, to begin serving her prison term.
On June 9, 2015, the 55–year-old Fredericksburg, TX, resident pleaded guilty to one count of wire fraud. According to court records, from January 2012 until September 2014, Mayfield prepared and filed false Consolidated Reports of Condition and Income (aka “Call Reports) with federal and state bank regulators on behalf of DSB which overstated the assets of DSB by approximately $830,000. By pleading guilty, Mayfield admitted that on September 16, 2014, she emailed those false reports to a prospective buyer of DSB. The buyer relied on those false DSB Call Reports in their decision to purchase DSB.
The case resulted from a joint investigation by the Federal Bureau of Investigation, U.S. Secret Service, Federal Deposit Insurance Corporation (FDIC) and the Office of Inspector General for the Board of Governors of the Federal Reserve System – Consumer Financial Protection Bureau. This case is being prosecuted by Assistant United States Attorney Greg Surovic.
Sabinal Income Tax Return Preparer Sentenced to Federal PrisonRead the Press Release
In Del Rio today, Mary Davis Reyes, owner and operator of Fast Tax in Sabinal, TX, was sentenced to 30 months in federal prison for preparing a false tax return, announced United States Attorney Richard L. Durbin, Jr., and Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge William Cotter in San Antonio.
In addition to the prison term, United States District Judge Alia Moses ordered that Reyes pay $87,371.08 restitution to the Internal Revenue Service and be placed on supervised release for a period of one year after completing her prison term.
On November 19, 2014, Reyes pleaded guilty to one count of aiding and assisting in the preparation of a false tax return. By pleading guilty, Reyes admitted that in April 2009, she knowingly prepared a false and fraudulent income tax return which claimed a $5,673 refund for a client.
According to court records, during tax years 2007 through 2009, Reyes provided false information under the Earned Income (EIC) Provisions of the tax code in order to maximize her clients’ refunds. The IRS-CI investigation determined that Reyes aided and assisted in the preparation and filing of a number of similar false tax returns with a combined loss of $87,371.08.
“Today’s sentencing of Mary Davis Reyes is a reminder to honest taxpayers to take care when choosing a tax return preparer,” said IRS-Criminal Investigation San Antonio Special Agent in Charge William Cotter. “Reyes’ Fast Tax service was in the business of trying to pull a fast one on the IRS. Putting abusive return preparers out of business is a top priority for IRS-CI. Taxpayers looking for tax preparation information are encouraged to visit IRS.gov.”
Assistant United States Attorney William R. Harris prosecuted this case on behalf of the Government.
El Paso Businessowner Sentenced to Federal Prison for Role in Money Laundering Scheme Associated with Black Market Peso ExchangeRead the Press Release
In El Paso today, 53-year-old Jose Luis Rodriguez, owner of ERENE, Inc. (ERENE) was sentenced to 121 months in federal prison for implementing an estimated $100 million trade-based money laundering scheme announced United States Attorney Richard Durbin, Jr., Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge William Cotter, and Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez.
In addition to the prison term, United States District Judge David C. Guaderrama ordered that Rodriguez pay a $10,000 fine and be placed on supervised release for a period of three years after completing his prison term. Judge Guaderrama also ordered that Rodriguez forfeit to the Government property located at 600 S. Stanton in El Paso and approximately $650,000 in U.S. Currency seized from his bank accounts. In addition, Rodriguez agreed to forfeit to the Government shoe and other products seized during this investigation valued at over $1 million.
ERENE, formerly doing business as “J&E Sports” among other names, is an El Paso-based business which primarily sells shoes and other goods to U.S. and Mexican-based customers.
On August 27, 2015, the fourth day of his federal jury trial, Rodriguez pleaded guilty to one count of conspiracy to commit money laundering. By pleading guilty, Rodriguez admitted that he and others conspired to launder the proceeds of a scheme to illegally smuggle millions of dollars worth of goods into Mexico without paying the tariffs, duties, and fees imposed by the Mexican government. From March 6, 2006 to November 2014, these goods were ultimately smuggled using “pasadores” or black market smugglers and were done so without following the U.S. laws and regulations applicable to the export of goods from the United States. Evidence presented during trial also revealed that between 2012 and 2014, more than an estimated $2.3 million in bribes were paid to Mexican customs officials to facilitate the scheme.
“Today’s sentence is the culmination of a successful multi-agency investigation into a transnational criminal organization. These individuals moved money and U.S. goods across our border in furtherance of their illegal activities,” said Waldemar Rodriguez, special agent in charge of HSI El Paso. “HSI will continue to work with our law enforcement partners in the United States and Mexico to investigate and expose money laundering regardless of the schemes that are utilized.”
Three co-defendants--40–year-old ERENE Assistant Manager Jorge Penuelas, 53-year-old ERENE employee Manuel Rodriguez and 39-year-old Ricardo Cruz-Olguin—entered guilty pleas to the conspiracy charge prior to jury selection. Their sentences ranged from one year incarceration to three years probation. Two other co-defendants are fugitives. They are 38–year-old Cesar Salazar-Carrillo and 53-year-old Amalia Turcio Ortega. Both are charged with participating in the money laundering conspiracy.
This investigation was conducted by the HSI’s Financial Operations & Currency Unified Strikeforce (FOCUS). FOCUS is comprised of investigators from HSI, IRS – Criminal Investigation (IRS-CI), U.S. Postal Inspection Service (USPIS), Customs and Border Protection – Office of Field Operations (CBP-OFO), the El Paso Police Department and the Texas Attorney General’s Office. The Government of Mexico Servicio de Administracion Tributaria (SAT) also assisted in this investigation. The case was prosecuted by Assistant United States Attorneys Joseph Blackwell and John Gibson.
First Defendant Sentenced to Federal Prison in Eagle Ford Shale Oil Theft CaseRead the Press Release
In Del Rio today, 50-year-old Juan Martin Bernal of Eagle Pass, TX, was sentenced to 21 months in federal prison for his role in a scheme to steal an estimated $1.4 Million worth of Eagle Ford Shale oil announced United States Attorney Richard L. Durbin, Jr., Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division, and Internal Revenue Service-Criminal Investigation Special Agent in Charge William Cotter.
In addition to the prison term, United States District Judge Alia Moses ordered that Bernal pay a monetary judgment of $150,000 and to be placed on supervised release for a period of three years after completing his prison term.
Last year, Bernal and his two co-defendants--26–year-old Carlos Samuel Pena of Del Rio and 38-year-old Victor Manuel Guerra, Jr., owner of Las Lomas Vacuum Services and AVG Vacuum Services in Laredo, TX--pleaded guilty to one count of theft from an interstate shipment. By pleading guilty, the defendants admitted that between January 2011 and August 2014, they devised a scheme to steal oil from multiple energy companies operating in the South Texas’ Eagle Ford Shale using Guerra’s wastewater removal trucks. Those companies included a company Bernal worked for, Newfield Exploration Company, and a company that employed Pena, Anadarko Petroleum Corporation.
According to court documents, Guerra’s company had no contract or permission to be on Newfield or Andranko property. However, Bernal and Pena covertly allowed Guerra’s wastewater trucks onto Newfield and Andranko properties where the drivers, in collusion with the defendants, would take oil. The pilfered oil was then transported to Guerra’s property where Guerra would sell the stolen product for financial gain to third-party buyers who would pay for the oil via wire transfer.
Guerra and Pena face up to ten years in federal prison. Guerra’s sentencing is scheduled for April 25, 2016. Pena’s sentencing is scheduled for June 20, 2016. Both hearings are scheduled to take place in Del Rio before Judge Moses.
This case resulted from an investigation conducted by agents with the Federal Bureau of Investigation (FBI), Internal Revenue Service (IRS) Criminal Investigation, Texas Attorney General’s Special Investigations Unit, Bexar County District Attorney’s Office, Texas Department of Public Safety, Texas Rangers, Dimmit County Sheriff’s Office, and the Texas Railroad Commission. Assistant United States Attorneys Bryan Nathan Reeves and Timothy Adam Duree are prosecuting this case on behalf of the Government.
Former Austin Resident Sentenced to Federal Prison in Connection with an Estimated $1.4 Million Ponzi SchemeRead the Press Release
In Austin today, Rose Marie O’Reilly, 63, of La Grange, TX, was sentenced to 48 months in federal prison for her role in an estimated $1.4 Million Ponzi scheme announced United States Attorney Richard L. Durbin, Jr., Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division, Internal Revenue Service-Criminal Investigation Special Agent in Charge William Cotter, and Texas State Securities Board Commissioner John Morgan.
In addition to the prison term, United States District Judge Sam Sparks ordered that O’Reilly pay $1,463,128.50 restitution and to be placed on supervised release for a period of three years after completing her prison term.
“O'Reilly ran a classic con with a dazzling twist--offering the allure of collectible silver antiques and pink diamonds. Like all Ponzi schemes, at its core was a simple scheme to defraud investors and use their money for her own gain,” said United States Attorney Richard L. Durbin, Jr.
On September 23, 2015, O’Reilly pleaded guilty to one count of money laundering. By pleading guilty, O’Reilly admitted that from August 2007 to August 2012, she stole money from investors through an antiques and jewelry acquisition scheme and engaged in monetary transactions with criminally derived property. According to court documents, O’Reilly convinced investors that various antiques and jewelry items purchased with their investment funds could be resold for profit. Some of the antiques and jewelry pieces in her scheme included the Spratling Silver Banquet Set purportedly commissioned by deceased Country and Western singer Marty Robbins. O’Reilly convinced investors that once the “lost” pieces were reunited with the set, they could then sell the complete collection for the anticipated price of $21 million. O’Reilly also convinced investors that she could acquire, and then resell for profit, an assortment of pink diamond jewelry formerly owned by alleged New Orleans mob boss Carlos Macello.
“The FBI will continue to vigorously pursue scam artists, like the defendant, who convince others to entrust them with their hard-earned money, but instead use that money for personal gain,” said FBI Special Agent in Charge Christopher Combs. “This sentence ensures that Mrs. O’Reilly is punished and sends the strong message that investment schemes don’t pay.”
“The role of IRS Criminal Investigation becomes even more important in Ponzi scheme investigations such as this due to the complex financial transactions that must be unraveled. Honest and law abiding citizens are fed up with greedy individuals, such as Ms. O’Reilly, who abuse the trust they are granted and use deceit and fraud to line their pockets with other people’s money,” said IRS Criminal Investigation Special Agent in Charge William Cotter. “Today’s sentencing demonstrates the serious consequences of financial crimes such as this and the collective focus of IRS-CI and our partners to holding the perpetrators of such nefarious investment schemes accountable for their actions.”
This case is the result of a joint investigation conducted by the FBI, IRS-Criminal Investigation, and the Texas State Securities Board. Assistant United States Attorney Sharon Pierce prosecuted this case on behalf of the Government.
Midland Man Sentenced to 23 Years in Federal Prison for Role in Methamphetamine Intoxication DeathRead the Press Release
In Midland today, Senior United States District Judge Robert A. Junell sentenced 23–year-old Zane Paul O’Neal to 23 years in federal prison followed by ten years of supervised release after admitting to his role in the death of Sandy Brooke Franklin last year announced United States Attorney Richard L. Durbin, Jr., and Drug Enforcement Administration (DEA) Special Agent in Charge Will Glaspy, El Paso Division.
On October 22, 2015, O’Neal pleaded guilty to one count of distribution of methamphetamine that resulted in foreseeable death.
According to court records, on July 29, 2015, Sandy Brooke Franklin began exhibiting signs of illness while being held in the Midland County Jail. She informed the jail staff that she had previously concealed a quantity of methamphetamine prior to arriving at the facility and had subsequently swallowed the methamphetamine. Franklin was taken by jail staff to Midland Memorial Hospital where she later died.
On July 27, 2015, Franklin, who had an outstanding warrant for her arrest, was taken into custody following a traffic stop on a vehicle being driven by the defendant, O’Neal. Further investigation revealed that O’Neal was a methamphetamine supplier in the Midland area. By pleading guilty, O’Neal admitted to providing approximately three grams of methamphetamine to Franklin so she could hide it from law enforcement during the traffic stop. O’Neal further admitted that several hours after Franklin’s arrest, she called him and told him that she had “eaten” the methamphetamine. A recorded jail phone call from Franklin to O’Neal confirmed that O’Neal provided the methamphetamine to Franklin and directed her to ingest it. O’Neal, admittedly, did not notify anyone of Franklin’s condition.
This case was investigated by the DEA, the Midland Police Department and the Midland County Sheriff’s office. Assistant U.S. Attorney Brandi Young prosecuted this case on behalf of the Government.
San Antonio Man Sentenced for Bank RobberyRead the Press Release
In San Antonio today, 51-year-old Edward Mesquiti was sentenced to 151 months in federal prison for bank robbery 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 Xavier Rodriguez ordered that Mesquiti be placed on supervised release for a period of three years after completing his prison term.
On February 27, 2014, Mesquiti, along with his co-defendant, Jacob Sanchez, age 40, robbed BBVA Compass Bank located on Goliad Road in San Antonio, TX. According to court records, Sanchez entered the bank with a mask on his face, pulled out a gun, racked it, and pointed the gun at a bank employee while instructing the employee to “get all the money,” and put it in a bag Sanchez provided. Sanchez fled in a white Tahoe driven by Mesquiti.
San Antonio Police Department (SAPD) responded to the robbery and with the assistance of an SAPD helicopter, officers were able to track the Tahoe and pull the vehicle over. Officers arrested Sanchez but Mesquiti drove off, ramming the Tahoe into a police cruiser. Mesquiti eventually abandoned the vehicle and fled on foot. SAPD officers apprehended Mesquiti a short time later. Testimony at trial revealed that two SAPD officers were injured in the course of Mesquiti’s flight. Mesquiti was on parole for a Bexar County robbery conviction at the time of his arrest for the BBVA Compass Bank robbery.
On May 20, 2015, Sanchez pled guilty to one count of bank robbery and was sentenced on September 23, 2015, to 84 months imprisonment and three years of supervised release after the completion of his sentence.
On July 7, 2015, Mesquiti was found guilty by a jury of one count of bank robbery.
This case was investigated by the Federal Bureau of Investigation together with the San Antonio Police Department. Assistant United States Attorney Sarah Wannarka prosecuted this case on behalf of the Government.
El Paso Man Sentenced to 23 Years in Federal Prison for Production of Child PornographyRead the Press Release
In El Paso, 42–year-old Eric Flores was sentenced to 23 years in federal prison for production of child pornography announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation (FBI) Special Agent in Charge Douglas E. Lindquist, El Paso Division.
In addition to the prison term, United States District Judge Philip R. Martinez ordered that Flores be placed on supervised release for life after completing his prison term.
On October 21, 2015, Flores pleaded guilty to one count of production of child pornography. By pleading guilty, Flores admitted that on September 13, 2013, he produced visual depictions of a minor engaged in sexually explicit conduct.
Flores has remained in federal custody since his arrest by FBI agents on May 6, 2015.
“FBI El Paso is committed to serve our community, particularly those who cannot protect themselves, our children,” stated FBI Special Agent in Charge Douglas E. Lindquist.
This case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Rifian Newaz.
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 Bandidos Outlaw Motorcycle Organization LeadershipRead the Press Release
This morning, federal and state authorities in Texas arrested the highest ranking leaders of the Bandidos Outlaw Motorcycle Organization (OMO)--National President Jeffrey Fay Pike, National Vice President John Xavier Portillo and National Sergeant at Arms Justin Cole Forster--based on federal racketeering and drug distribution charges. Pike, age 60 of Conroe, TX; Portillo, age 56 of San Antonio; and, Forster, age 31 of San Antonio, are accused 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.
That announcement was made today by 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, and Texas Department of Public Safety Director Steve McCraw.
A federal grand jury indictment, unsealed today, charges the defendants with one count of conspiracy to violate the Racketeering Influenced Corrupt Organization (RICO) statute and one count of conspiracy to commit violent crimes in aid of racketeering (VICAR). Pike is also charged with one count of interference with Commerce by extortion. Portillo is also charged with two substantive VICAR counts, plus one count each of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, and interference with Commerce by extortion. Forster is also charged with conspiracy to possess with intent to distribute methamphetamine, two counts of possession with intent to distribute methamphetamine, and one count of interference with Commerce by extortion. The indictment is attached.
According to the indictment, beginning in 2013, the Bandidos OMO declared it was “at war” with the Cossacks OMO. The indictment specifically alleges a number of violent acts committed by Bandidos OMO members in furtherance of this “war.” The indictment also alleges that in 2014, Portillo received methamphetamine from Colorado-area Bandidos members and that Forster was selling ounce quantities of methamphetamine.
“This joint investigation by the DEA, the FBI, the Texas Department of Public Safety, and the U.S. Attorney's Office has led to the charging and arrest of the highest ranking leadership of the Bandidos Outlaw Motorcycle Organization. Of course, the defendants will have their day in court, but today's arrests have struck a significant blow to the Bandidos' criminal enterprise,” stated United States Attorney Richard L. Durbin, Jr.
“Operation Texas Rocker has inflicted a debilitating blow to the leadership hierarchy and violent perpetrators of the Bandidos Outlaw Motorcycle Gang,” said Joseph M. Arabit, Special Agent in Charge of the Drug Enforcement Administration-Houston Field Division. “This 23-month operation highlights a deliberate and strategic effort to cut off and shut down the supply of methamphetamine trafficked by the Bandidos as well as other related criminal activity.”
“These indictments and arrests are the result of the ongoing partnership and collaboration between the FBI, DEA and DPS to neutralize one of the most dangerous criminal organizations in Texas,” said FBI Special Agent in Charge Christopher Combs. “This effort not only exemplifies our commitment to prevent gang violence and criminal activity from poisoning our communities, but it also sends a clear message that we will relentlessly pursue and prosecute the leaders and members of these violent criminal enterprises.”
Pike, Portillo and Forster remain in federal custody. Upon conviction, the defendants face up to life in federal prison.
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 and the Bexar County District Attorney’s Office. Assistant United States Attorney Eric J. Fuchs is prosecuting this case on behalf of the Government.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendants are considered innocent until proven guilty in a court of law.
Authorities Arrest Eight Today in Connection with Liquid/Crystal Methamphetamine Distribution Operation in the Odessa AreaRead the Press Release
Today, federal, state and local authorities arrested eight individuals for their role in a methamphetamine distribution scheme operating in the Odessa area. A federal grand jury indictment unsealed today charges those eight, along with 15 other individuals who were previously arrested, with conspiracy to possess with intent to distribute methamphetamine, announced United States Attorney Richard L. Durbin, Jr., Western District of Texas, and Drug Enforcement Administration (DEA) Special Agent in Charge Will Glaspy, El Paso Division.
“These defendants are accused of using family connections to establish a drug distribution ring that converted large quantities of liquid methamphetamine into crystal methamphetamine and sold it on the streets of Odessa,” stated United States Attorney Richard L. Durbin, Jr. “The cooperation between the federal and local law enforcement agencies effectively disrupted this organization,” he added.
Between August 2015 and November 2015, the defendants, under the direction of brothers Moises and Jose Ramirez, allegedly conspired to distribute methamphetamine in the Western and Northern Districts of Texas. On September 21, 2015, Ector County Sheriff’s deputies seized approximately 3.5 pounds of methamphetamine from Henry Andrade, Sr. and Monica Berumen Lopez following a traffic stop in Odessa. In November 2015, federal and local authorities executed four search warrants in Odessa and seized a total of 11 pounds of methamphetamine allegedly belonging to this organization. Ten pounds of the seized methamphetamine was in the process of being converted from liquid into crystal form; the other pound was in crystal form.
“Today we dismantled a dangerous drug trafficking organization that sold and distributed methamphetamine throughout the Midland-Odessa area. I am extremely proud of the work DEA and our partners have done in this investigation to help keep the Permian Basin safe,” said DEA Special Agent in Charge Will Glaspy.
A list of the defendants charged in the federal grand jury indictment is attached. They face between ten years and life in federal prison upon conviction.
This investigation was conducted by DEA agents in Midland, El Paso and Oregon together with the Midland County Sheriff’s Office, Midland Police Department, Ector County Sheriff’s Office, Texas Department of Public Safety and Homeland Security Investigations (HSI). The United States Marshals Service assisted in today’s arrests. Assistant United States Attorney V. LaTawn Warsaw is prosecuting this case on behalf of the Government.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendants are considered innocent until proven guilty in a court of law.
El Paso Businesswoman Sentenced in False Tax Return CaseRead the Press Release
In El Paso today, 44 year-old Blanca Arcelia Ramos Estrada, owner of Blanca and Sons Tax Service in El Paso, appeared before United States District Judge Kathleen Cardone and was sentenced to one year and a day in federal prison followed by 1 year of supervised release, ordered to pay $140,000 in restitution and ordered to perform 100 hours of unpaid community service for preparing a false tax return, announced United States Attorney Richard L. Durbin, Jr., and Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge William Cotter.
On June 22, 2015, Estrada pleaded guilty to one count of aiding and assisting in the preparation of a false tax return. By pleading guilty, Ramos admitted she fraudulently inflated income amounts for her clients in order to maximize their refunds under the Earned Income (EIC) Provisions of the tax code. The IRS investigation determined that Ramos aided and assisted in the preparation and filing of a number of similar false tax returns with combined losses of approximately $140,000.
IRS Criminal Investigation Special Agent in Charge William Cotter said, “Taxpayers should choose carefully when hiring a tax preparer to avoid unscrupulous preparers, such as Ms. Ramos, who file false and fraudulent returns to defraud the government and their own clients. Our 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. Today’s sentence is a firm reminder that all tax professionals have to respect the law and protect the interests of their clients and the taxpaying public.”
This case was investigated by the IRS-CI. Assistant United States Attorneys Steven R. Spitzer and William R. Harris prosecuted this case on behalf of the Government.
Four Uvalde Texas Syndicate Members Sentenced to Life in Federal PrisonRead the Press Release
In Del Rio, a federal judge sentenced 29 Uvalde/Hondo-area Texas Syndicate (TS) members over the past two weeks to federal prison, including four defendants to life imprisonment, for various racketeering and drug trafficking offenses committed in Uvalde, San Antonio and the surrounding areas announced United States Attorney Richard L. Durbin, Jr., and Special Agent in Charge Christopher Combs of the FBI’s San Antonio Division.
United States District Judge Alia Moses sentenced TS members and Uvalde residents George “Curious” Sanchez, age 40; Raul “Fatboy” Rodriquez, age 42; Mike “Big Mike” Cassiano, age 39; and, Cristobal “Little Cris” Velasquez, age 37, to life in federal prison for conspiracy to violate the Racketeering Influenced Corrupt Organization (RICO) statute.
On April 2, 2015, jurors in Del Rio convicted Sanchez of conspiracy to violate the RICO statute. Evidence presented during his trial revealed that Sanchez, along with fourteen other TS members and associates, conspired since 2002 to commit three murders and distribute more than five kilograms of cocaine, 100 kilograms of marijuana and three ounces of methamphetamine. Jurors also found Sanchez guilty of conspiracy to commit murder in aid of racketeering and murder in aid of racketeering for the murder of Rogelio Mata on October 13, 2002, in Uvalde. Mr. Mata was murdered for his failure to follow TS rules.
On July 1, 2013, in a separate jury trial in Del Rio, Sanchez’s co-defendants Raul Rodriquez, Mike Cassiano and Cristobal Velasquez were convicted of conspiracy to violate the RICO statute. Rodriquez also was convicted of the substantive charge of violent crime in aid of racketeering for his role in the murder of Rogelio Mata. Velasquez was found guilty of conspiracy to commit violent crime in aid of racketeering and the substantive charge of violent crime in aid of racketeering for the murder of Jose Guadalupe de la Garza on December 25, 2005 in Uvalde. Cassiano also was found guilty of two counts of conspiracy to commit violent crime in aid of racketeering for his role in the murder of Jose Guadalupe de la Garza and the November 9, 2009, murder of Jesse James Polanco in Uvalde. Judge Moses sentenced the remaining ten defendants, all of whom pleaded guilty prior to jury selection to conspiracy to violate the RICO statute, to prison terms ranging from five years to life. A 15th defendant, Inez Mata, pleaded guilty to the RICO conspiracy charge prior to jury selection. He died of natural causes in Uvalde in March 2015 while awaiting sentencing in this case.
In addition to the RICO defendants, 15 other TS members and associates were sentenced to federal prison for their roles in a drug trafficking enterprise. Eli Torres, age 39, of Uvalde, and Alfredo Tapia, III (aka “Naco”), age 44, of Hondo, were sentenced to 300 months and 240 months imprisonment, respectively, after a jury convicted them of conspiracy to possess with intent to distribute cocaine.
Jurors found that Torres participated in this drug distribution ring as a member of the TS prison gang using the gang’s drug distribution connections to aid him in obtaining cocaine to sell on the streets of Uvalde from August 1, 2009, until September 28, 2011. Torres was also found guilty of possession with the intent to distribute 500 grams or more of cocaine within 1,000 feet of the Sacred Heart Parish School in Uvalde.
Jurors also found Tapia guilty of conspiracy to possess with the intent to distribute 100 kilograms or more of marijuana during that same time period. Drug transactions were conducted at Tapia’s home and on one occasion a person was held at gun point in Tapia’s backyard until that person paid his drug debt. Tapia was associated with members of the Texas Syndicate prison gang and facilitated their distribution of cocaine and marijuana.
The remaining 13 defendants, including former Bandera County Sheriff’s Deputy Thomas Cuellar, pleaded guilty prior to trial to conspiring to distribute controlled substances in the Uvalde and Hondo areas. In addition to the narcotics charges, Cuellar also pleaded guilty to unlawfully accessing a police department computer in order to obtain law enforcement information regarding the co-conspirators. Judge Moses sentenced Cuellar to 40 months incarceration while sentencing the others to federal prison terms ranging from 48 months to 151 months.
According to testimony at trial, the Texas Syndicate is a violent prison gang that has spread its influence into Texas cities and towns. Members of the Texas Syndicate are bound by a set of rules that ensure loyalty and participation in the enterprise’s criminal activities and are subject to strict and harsh discipline, including death, for violating the rules. The rules require that a member continue his participation in the organization even after his release from prison. Membership is for life and the gang comes first above all else, to include family.
The case resulted from a joint investigation by the Federal Bureau of Investigation with the Texas Department of Public Safety--Criminal Investigations Division, San Antonio Police Department, Medina County Sheriff’s Office and the Bandera County Sheriff’s Office. Also assisting in the investigation was the 38th Judicial District Adult Probation Gang Unit, Texas Department of Criminal Justice and the U.S. Bureau of Prisons. The U.S. Marshals Service, U.S. Immigration and Customs Enforcement-Customs and Border Protection and the Uvalde County Sheriff’s Department assisted in making the arrests. Assistant United States Attorneys Patrick Burke, Ralph Paradiso, Erica Giese and Matthew Watters handled this matter on behalf of the Government.
Qatar Military Official and Wife Plead Guilty to Federal ChargesRead the Press Release
In San Antonio today, a military official from Qatar pleaded guilty to visa fraud and his wife pleaded guilty to misprision of a felony involving two domestic employees who were also citizens of foreign countries announced United States Attorney Richard L. Durbin, Jr., and Special Agent in Charge Shane Folden, Homeland Security Investigations (HSI) in San Antonio.
According to court records, 46-year-old Hassan Al-Homoud and his 39–year-old wife, Zainab Al-Hosani, a citizen of the United Arab Emirates, along with their children, currently reside in San Antonio while Al-Homoud is attending military training at Camp Bullis. In mid-2014, the defendants allegedly brought with them to the U.S. two females--a housemaid and a servant who worked for the family. The housemaid is a citizen of Indonesia; the servant is a citizen of Bangladesh. Both were in the U.S. on visas sponsored by Al-Homoud. By pleading guilty, the defendants admitted that they falsified the documents required to secure the visas for the two women.
The workers’ circumstances were discovered by an officer of the San Antonio Police Department in early April, when he encountered one of the workers in apparent distress along Camp Bullis Rd. This led law enforcement officers to a nearby apartment occupied by the workers, furnished with only a pallet on the floor for sleeping.
Statutorily, the defendants face up to ten years in federal prison. However, pursuant to the plea agreement, provided the terms and conditions are satisfied including restitution to each of the victims, Al-Houmoud will be placed on probation for five years, and his wife for three years. Both remain on bond pending sentencing scheduled for February 9, 2016, before United States District Judge Orlando Garcia in San Antonio. Further, in accordance with the plea agreement, both of them will be immediately removed from the U.S. following sentencing.
This case was investigated by Homeland Security Investigations (HSI) in San Antonio. Assistant United States Attorney Bettina Richardson is prosecuting this case on behalf of the Government.
New Federal Veterans Treatment Court Program Begins Next Month on Fort HoodRead the Press Release
Beginning next month, qualified veterans charged with committing misdemeanors while on Fort Hood will be eligible to participate in a pilot program designed to provide an alternative to a federal conviction announced United States Attorney Richard L. Durbin, Jr.
The Fort Hood Federal Veterans Treatment Court, "Veterans Endeavor for Treatment and Support" or "VETS," will work to divert veterans with service-connected mental health or substance abuse disorders out of the court system and into enduring treatment solutions with the Department of Veterans Affairs.
This initiative will be supervised by the United States District Court for the Western District of Texas and run by United States Magistrate Judge Jeffrey C. Manske with the support of United States Attorney Durbin.
This new program at Fort Hood is believed to be the first of its kind on a U.S. Army installation. It will provide a defendant-veteran whose deployments led to a diagnosis of post-traumatic stress manifesting in substance abuse which results in a DWI/DUI the opportunity to avoid a federal conviction for that offense if he or she completes a 12-18 month treatment and supervision program with the Veterans Affairs and the Court.
VETS requires enrollees to engage in intensive multi-stage professional counseling and treatment for issues involving substance abuse, mental health, disability, finances, and other difficulties, including those related to their military service. They must also abide by strict rules of conduct, follow rigorous treatment plans, and attend mandatory scheduled hearings before Judge Manske.
The treatment court model also builds upon the Department of Justice 'Smart on Crime' initiative to bolster prevention and reentry efforts to deter crime and reduce recidivism
“This initiative, directed at veterans, will serve justice by directing them to available resources. We especially hope to provide alternatives for criminal conviction for veterans whose military service may have contributed to their current conditions and conduct,” stated United States Attorney Richard L. Durbin, Jr. “We hope this program will lead the way for similar initiatives to develop in other federal jurisdictions near major military bases where veterans congregate.”
VETS is a joint partnership carried out by the United States District Court, United States Attorney's Office, and Pretrial Services Office for the Western District of Texas, the Department of Veterans Affairs, U.S. Army III Corps and Fort Hood, and the Military Veteran Peer Network operating with "Bring Everyone in the Zone."
The initiative was inspired by examples of similar programs in state jurisdictions and the Department of Justice. More than 160 of these courts exist in state and federal jurisdictions nationwide.
Federal Jury in Austin Convicts Mexican Businessman in Money Laundering Conspiracy Involving Los Zetas Drug Distribution ProceedsRead the Press Release
In Austin this afternoon, 54-year-old Mexican businessman Francisco Colorado Cessa faces up to 20 years in federal prison after a jury convicted him of scheming to launder millions of dollars in Los Zetas drug distribution proceeds through purchasing, training, breeding and racing American quarter horses in the United States, announced United States Attorney Richard L. Durbin, Jr., FBI Special Agent in Charge Christopher H. Combs, Internal Revenue Service-Criminal Investigation Special Agent in Charge William Cotter and Drug Enforcement Administration Special Agent in Charge Joseph M. Arabit.
Jurors convicted Colorado Cessa of one count of conspiracy to commit money laundering. Trial testimony revealed a shell game by Colorado Cessa, a close associate of the Zetas drug cartel’s top leaders including Miguel Angel Trevino Morales (aka “Z-40”), Oscar Omar Trevino Morales (aka “Z-42”), and others involving straw purchasers and transactions worth millions of dollars in New Mexico, Oklahoma, California and Texas to disguise the source of the drug money and make the proceeds from the sale of quarter horses or their race winnings appear legitimate.
Colorado-Cessa was the owner of ADT Petroservicios, an oil services company in Mexico doing business with the Mexican National Oil Company PEMEX. Testimony and evidence revealed that Miguel Angel Trevino Morales, the leader of Los Zetas drug cartel, provided drug proceeds to Colorado-Cessa. Colorado-Cessa then laundered those proceeds through his company to eventually purchase quarter horses for both himself and the leaders of the Los Zetas at quarter horse auctions and private sales in the United States.
Over 400 quarter horses seized by federal authorities in June 2012 as part of the above mentioned money laundering operation have been sold for approximately $12 million. One of the seized horses, Tempting Dash, winner of the Dash for Cash at Lone Star Park race track in Grand Prairie, TX, in October 2009, sold at an auction for a record $1.7 million in November 2013.
On September 5, 2013, a federal judge sentenced Colorado Cessa to 20 years in federal prison after a jury convicted him of the same charge. That conviction and sentence was reversed by the 5th Circuit Court of Appeals in June 2015, and the case was remanded back to the District Court for this recent trial.
“Today’s conviction affirms that two separate juries, hearing the same evidence, found Mr. Colorado guilty of laundering money for the Zetas drug cartel,” said IRS-Criminal Investigation Special Agent in Charge William Cotter. “When choosing to make the ‘tempting dash’ for the prize, Mr. Colorado should have known that IRS Special Agents would eventually beat him to the finish line, uncovering the complex layering of transactions Colorado used in laundering the Zetas narcotics profits.”
This investigation was conducted by agents with the Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation and the Drug Enforcement Administration with assistance from the United States Marshals Service, Immigration and Customs Enforcement Homeland Security Investigations (ICE-HSI) and U.S. Border Patrol. Other judicial districts involved in this matter include the Western District of Oklahoma, Central District of California, Southern District of Texas, District of New Mexico and the U.S. Department of Treasury’s Office of Foreign Assets Control (OFAC).