Western District of Texas
Press releases recorded for this federal judicial district.
Former Campaign Coordinator Pleads Guilty to Embezzling from Texas Lieutenant Governor David DewhurstRead the Press Release
In Austin today, 58-year-old political consultant Kenneth Barfield (aka “Buddy Barfield”) pleaded guilty to stealing approximately $1.8 Million in campaign funds from Texas Lieutenant Governor David Dewhurst announced United States Attorney Robert Pitman, Christopher Combs, Federal Bureau of Investigation (FBI) Special Agent in Charge of the San Antonio Division, and IRS Criminal Investigation Acting Special Agent in Charge William Cotter.
Appearing before United States Magistrate Judge Mark Lane, Barfield pleaded guilty to one count of wire fraud, one count of making a false tax return and one count of embezzlement of federal campaign funds. According to court documents, Barfield, and through his Austin-based companies, was a member of the campaign staff and committee for Lieutenant Governor David Dewhurst’s run for the Republican nomination for United States Senate in 2012. Barfield and his companies were responsible for securing, paying, and/or subcontracting legal and legitimate activities on behalf of Dewhurst’s campaign and had a fiduciary duty to act in the best interests of the campaign, including oversight and maintenance of financial records.
By pleading guilty to the charges, Barfield admitted to knowingly engaging in a scheme to steal an estimated $1.8 Million in campaign funds and use it for his own personal expenses including his home mortgage, school tuition for his children, personal investments and other living expenses. Barfield further admitted that on his 2008 Income Tax return, he knowingly stated that his Taxable Income was zero when, in fact, his Taxable Income should have been reported as approximately $582,000. Barfield also admitted that under his direction, fraudulent documentation was submitted in disclosure reports to the Federal Elections Commission (FEC) regarding expenditures for campaign disbursements.
“This case should serve as a reminder of the unfortunate truth that some people abuse positions of trust to enrich themselves at the expense of others, including, in this case, the taxpayers,” stated United States Attorney Robert Pitman.
Barfield is on bond pending sentencing. He faces up to 20 years in federal prison for wire fraud; up to three years in federal prison for making a false tax return; and, up to five years in federal prison for embezzlement of federal campaign funds. Sentencing before United States District Judge Sam Sparks in Austin has yet to be scheduled.
“Whenever an individual utilizes their position to defraud the public for their own personal gain by stealing campaign contributions, it tarnishes our political process. The FBI is committed to working with our law enforcement partners to ensure those who choose to line their pockets with public funds and abuse their positions of trust are held accountable,” stated FBI Special Agent in Charge Christopher Combs.
“The role of IRS Criminal Investigation becomes even more important in embezzlement cases such as this due to the complex financial transactions that must be unraveled. As in the case of Mr. Barfield, federal tax laws are typically violated in connection with this blatant fraud which can result in additional jail time,” stated IRS Criminal Investigation Acting Special Agent in Charge William Cotter. “Honest and law abiding citizens are fed up with greedy individuals who abuse the trust they are granted and use deceit and fraud to line their pockets with other people's money. Today's guilty plea demonstrates the collective efforts of IRS and our partners to enforce the law and ensure public trust.”
This case was investigated by special agents with the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation together with the Travis County District Attorney’s Special Prosecution Division. Assistant United States Attorneys Dan Guess and Ashley Hoff are prosecuting this case on behalf of the Government.Terlingua Woman Sentenced to Maximum Ten Years in Federal Prison for Collecting Deceased Father's Social Security BenefitsRead the Press Release
In Pecos on Friday, United States District Judge Robert A. Junell sentenced a 49-year-old Terlingua, TX, woman to the statutory maximum of ten years in federal prison for stealing over $245,000 in Social Security benefits paid to her deceased father announced Robert Pitman, United States Attorney.
In addition to the prison term, Judge Junell ordered Judith Maria Broughton to pay restitution to the federal government in the amount of $245,226 and be placed under supervised release for a period of three years after completing her prison term.
On July 3, 2014, Broughton pleaded guilty to a one count Information charging her with willfully and knowingly stealing Social Security Administration Retirement Insurance Benefits. By pleading guilty, Broughton admitted that she forged her father’s signature causing SSA benefits paid in the name of her father, Luther D. Broughton, to be electronically deposited into a joint checking account. From June 1990 to August 2011, she collected the funds deposited into the account even after his death. Broughton further admitted to converting those monies to her own personal use.
According to court records, Luther Broughton died in June 1990 and the defendant leased a storage unit in Lexington, KY, to conceal his death. A search of the storage unit on January 8, 2014, revealed the mummified remains of Luther D. Broughton as well as his personal belongings including an automobile. Also, the defendant’s mother, Mary Elizabeth Broughton’s, Social Security benefits were being electronically deposited into a joint checking account with the defendant. Mary Elizabeth Broughton’s whereabouts have not been determined and her SSA benefits have been suspended.
This case was investigated by special agents with the Social Security Administration-Office of Inspector General with assistance from the Brewster County Sheriff's Office and law enforcment in Lexington, KY. Assistant United States Attorney James J. Miller, Jr. prosecuted this case on behalf of the Government.
Federal Jury in Del Rio Convicts Los Zetas Cartel Drug DealerRead the Press Release
A member of a drug trafficking organization with ties to the Los Zetas Cartel operating in Piedras Negras, Mexico, faces up to life in federal prison after a jury convicted him of smuggling thousands of kilograms of marijuana into the United States from Mexico announced United States Attorney Robert Pitman, Christopher Combs, Federal Bureau of Investigation (FBI) Special Agent in Charge of the San Antonio Division, Janice Ayala, Homeland Security Investigations Special Agent in Charge, San Antonio, and Joseph M. Arabit, Drug Enforcement Administration Special Agent in Charge, Houston Division.
On October 16, 2014, jurors convicted 20–year-old Servando Benitez-Reynoso of one count of conspiracy to possess with the intent to distribute 1,000 kilograms or more of marijuana and one count of possession with the intent to distribute 1,000 kilograms or more of marijuana. The jurors found him not guilty of conspiracy to commit bulk cash smuggling and one count of bulk cash smuggling.
According to courtroom testimony, Benitez-Reynoso was the organizer for the drug trafficking organization in the United States who was responsible for coordinating the movement of marijuana loads from the Quemado, TX, and Normandy, TX, areas to San Antonio and Austin between September 27, 2012, and July 31, 2013. Benitez-Reynoso scouted for the load vehicles and coordinated the route of travel to avoid detection. Bundles of marijuana, smuggled across the river into Quemado were transported to stash houses in Eagle Pass, TX. From there, the marijuana was transported to stash houses in San Antonio and Austin where it would be further broken down and distributed to other locations. Evidence presented during the trial also showed that Benitez-Reynoso attempted to influence the testimony of witnesses.
On July 31, 2013, Benitez-Reynoso was arrested in Eagle Pass while scouting for a load of marijuana. He will remain in federal custody pending sentencing. Sentencing is scheduled for February, 2014, in Del Rio.
This case was investigated by special agents with the Federal Bureau of Investigation, Homeland Security Investigations and Drug Enforcement Administration together with the U.S. Border Patrol, U.S. Marshal Service, Austin Police Department, Houston Police Department, and Brookshire Police Department.24 Arrested in Crystal City Area-Based Cocaine Distribution OperationRead the Press Release
Federal, state and local law enforcement have arrested 23 individuals, including 35-year-old alleged ringleader George Alamillo of San Antonio, charged with conspiracy to distribute cocaine in the Crystal City, La Pryor, Carrizo Springs and San Antonio areas announced United States Attorney Robert Pitman, Drug Enforcement Administration Special Agent in Charge Joseph M. Arabit, Houston Division, and Homeland Security Investigations Special Agent in Charge Janice Ayala, San Antonio Division.
An eight–count indictment, unsealed today, charges those arrested, along with 44–year-old Gabriel Martinez (aka “Gabby”), who was already in custody prior to yesterday, with conspiracy to distribute cocaine. A list of the defendants arrested yesterday is below. Defendants face between five and 40 years, or up to 20 years, in federal prison upon conviction for the drug conspiracy charge.
The indictment alleges that from February 2014 to September 2014, the defendants participated in a cocaine distribution conspiracy. During this investigation, authorities have seized approximately one kilogram of cocaine, 660 pounds of marijuana, 15 firearms (including 10 AK-47s and one MAC-10 semi-automatic pistol), approximately $33,000 in U.S. Currency and three vehicles.
In addition to the drug charges, several defendants including Gerardo Martinez, Gabriel Martinez, Claudio Jimenez and Javier De la Rosa are charged with knowingly transporting undocumented aliens. Each defendant faces up to ten years incarceration upon conviction.
Domingo Aguilar also faces a single charge of unlawful possession of a firearm by a drug user. The indictment alleges that on June 10, 2014, Aguilar was unlawfully in possession of a .22 caliber American Tactical Rifle. Aguilar faces up to ten years incarceration upon conviction.
Martha Perez also faces a misprision of felony charge whereby she allegedly was aware of the drug distribution conspiracy and had possession of a cell phone used by a co-defendant to facilitate the operation, yet denied ever possessing the phone to authorities. Perez faces up to three years incarceration upon conviction.
“The success of this operation exemplifies the outstanding teamwork among federal, state and local law enforcement agencies in the Eagle Pass region. DEA will continue to work closely with our law enforcement partners in order to improve the quality of life in the communities throughout this area,” stated DEA Special Agent in Charge Joseph M. Arabit.
These charges and arrests resulted from an Organized Crime Drug Enforcement Task Force (OCDETF) investigation conducted by the Drug Enforcement Administration and Homeland Security Investigations with assistance from the United States Border Patrol, Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, Eagle Pass Police Department, 293rd Judicial District Attorney’s Office, Dimmit County Sheriff’s Office, Uvalde County Sheriff’s Office, Kinney County Sheriff’s Office, Maverick County Sheriff’s Office and the Zavala County Sheriff’s Office.
“This OCDETF criminal investigation worked by Homeland Security Investigations (HSI) and DEA dealt a major blow to a south Texas criminal organization that is made up several criminal networks,” said Special Agent in Charge Janice Ayala, HSI San Antonio.
“The Zavala County Sheriff’s Office is committed to working with our federal and state law enforcement partners to identify and remove drug trafficking from our communities,” said Zavala County Sheriff Eusevio Salinas. “Investigations of this scale provide a positive impact on our citizens and make our communities safer. I would like to thank the DEA Eagle Pass Office and HSI for their commitment to the citizens of Zavala County and our State.”
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.
ARRESTED YESTERDAY (24)
NAME AGE RESIDENCE
GEORGE ALAMILLO 35 San Antonio
LUCIO LEROY GONZALEZ 34 San Antonio
MARTHA ZULEMA PEREZ 44 LaPryor, TX
JOSE LUIS PEREZ 39 LaPryor
LLOYD DANIEL JACQUEZ a.k.a. “Richie” 34 LaPryor
JAVIER PEREZ a.k.a. “J-Bird” 33 LaPryor
JESUS VICTORINO a.k.a. “Chuy” 35 Uvalde, TX
JOHN DAVID VICTORINO a.k.a. “Pajaro” 35 Uvalde
MARGARITO BALCAZAR a.k.a. “Nunito” 26 LaPryor
VENTURA MORENO a.k.a. “Benny” 34 Crystal City, TX
REYNALDO ROBLEDO a.k.a. “Rey” 34 LaPryor
TIMOTHY PENA 36 LaPryor
JESSE JOE QUEVEDO a.k.a. “Caveman”, “Chuy” 35 Crystal City
GERARDO MARTINEZ a.k.a. “Gerry” 47 Crystal City
JESSICA LARA RODRIGUEZ 30 Carrizo Springs, TX
CHRIS MARTINEZ 40 Carrizo Springs
RAMIRO AGUILAR a.k.a. “Ram” 41 Crystal City
JOHNNY AGUILAR 40 Crystal City
MARK ANTHONY MENA 27 Crystal City
DEEANA NICOLE MARTINEZ 24 Crystal City
CLAUDIO PABLO JIMENEZ a.k.a. “Clyde” 43 Crystal City
JAVIER DELAROSA 42 Crystal City
DOMINGO AGUILAR a.k.a. “Mingo” 61 Crystal City
JESUS PEREZ a.k.a. “Jesse” 34 LaPryorEl Paso Repeat Sex Offender Sentenced to 30 Years in Federal Prison for Distribution of Child PornographyRead the Press Release
In El Paso today, U.S. District Judge Kathleen Cardone sentenced 34-year-old repeat sex offender Berry Jay Miller to 30 years in federal prison followed by a lifetime of supervised release for distribution of child pornography announced United States Attorney Robert Pitman and FBI Special Agent in Charge Douglas E. Lindquist, El Paso Division.
On August 11, 2014, Miller pleaded guilty to a child pornography distribution charge. By pleading guilty, Miller, a registered sex offender, admitted to using public terminals at the El Paso Public Library to exchange images of child pornography via email with other individuals, including an undercover agent. According to court records, Miller has two prior sex offenses in El Paso County—one for indecency with a child and one for solicitation of a minor. Miller has remained in federal custody since FBI agents arrested him on March 10, 2014.
“The sentencing of Berry Miller is a prime example of the dedication and hard work of the El Paso Child Exploitation Task Force, comprised of the FBI, El Paso Police Department, El Paso Sheriff’s Office, Texas Department of Public Safety and Homeland Security Investigations. We are dedicated to protecting the El Paso Community from predators who commit heinous crimes against children and will continue to rigorously investigate and prosecute them,” stated FBI Special Agent in Charge Douglas E. Lindquist, El Paso Division.
Assistant United States Attorney Robert Almonte prosecuted this case on behalf of the Government.
34 in Custody in Connection with Austin-Based Drug Distribution OperationRead the Press Release
Federal and state authorities have arrested 24 individuals, including Austin lawyers Richard Patrick Fagerberg, age 45, and David Ramos, age 39, for their roles in a cocaine and methamphetamine distribution operation announced United States Attorney Robert Pitman and Drug Enforcement Administration Special Agent in Charge Joseph M. Arabit, Houston Division.
Two related federal grand jury indictments, unsealed this afternoon, charges those arrested, as well as ten others who were already in custody prior to today, with conspiracy to distribute a controlled substance. A list of the defendants is below.
According to the indictments, the defendants have allegedly participated in a conspiracy to distribute various amounts of cocaine and methamphetamine since May 2013. During this 16-month-long operation, authorities have seized approximately 87 kilograms of cocaine and two kilograms of methamphetamine, four firearms, close to $1.5 million in criminally derived assets in connection with this investigation.
“Nothing is more important than the safety and security of our communities. DEA, and our federal, state, and local law enforcement partners in Austin and throughout Texas, will remain relentless in our pursuit of the vicious criminal individuals and drug trafficking organizations who threaten our safety and stability. These arrests send a strong and unified message that these crimes will not be tolerated in our communities and those who commit these offenses will be brought to justice,” stated DEA Special Agent in Charge Joseph M. Arabit.
Upon conviction, the defendants face statutory penalties of between ten years and life imprisonment or between five and 40 years imprisonment.
“Organized crime and drug trafficking are a serious threat to public safety in Texas, and DPS vigilantly works alongside our law enforcement partners to detect, deter and dismantle drug trafficking organizations operating in our communities,” said DPS Regional Commander Freeman Martin. “This long-term investigation is an ideal example of how law enforcement at all levels works together to put suspected criminals behind bars and protect Texans.”
These charges and arrests resulted from an investigation conducted by the Austin High Intensity Drug Trafficking Area (HIDTA) Task Force. The Austin HIDTA Task Force is made up of investigators from the Drug Enforcement Administration, Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation, Texas Department of Public Safety, Austin Police Department, Travis County Sheriff’s Office, Bastrop County Sheriff’s Office, Williamson County Sheriff’s Office, Hays County Sheriff’s Office, Cedar Park Police Department and the Georgetown Police Department. Other agencies participating in today’s arrests include Homeland Security Investigations (HSI), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), United States Marshals Service, Round Rock Police Department, Travis County District Attorney’s Office and the Williamson County District Attorney’s Office. Assistant United States Attorneys Mark Marshall and Dan Guess 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.
ARRESTED YESTERDAY (24)CASE # NAME AGE RESIDENCE STAT. PENALTY
A14cr292 DAVID DEPAZ 22 Austin, TX 10 years to life
A14cr292 HECTOR MAYORGA 23 Austin 10 years to life
A14cr292 ALVARO SALINAS 46 Austin 5 years to 40 years
A14cr292 ARTHUR VILLALOBOS 34 Taylor, TX 5 years to 40 years
A14cr292 JOEL AVILEZ-JAIMES 38 Austin 5 years to 40 years
A14cr292 VERONICA DeLEON 31 Taylor 5 years to 40 years
A14cr292 RENE PEREZ 35 Austin 10 years to life
A14cr292 ALEJANDRO RODRIGUEZ 41 Austin 5 years to 40 years
A14cr292 FRANCISCO LOPEZ 38 Austin 10 years to life
A14cr292 FERNANDO TEJEDA 30 Austin 10 years to life
A14cr292 JAVIER TEJEDA 24 Austin 5 years to 40 years
A14cr292 ROGELIO VILLANUEVA 35 Austin 5 years to 40 years
A14cr292 JAMES YERKES 46 Austin 10 years to life
A14cr292 TIMOTHY COOPER 49 Debray, FL 5 years to 40 years
A14cr300 RAY VILLEGAS 42 Austin 10 years to life
A14cr300 VALERIA CUENCA 23 Kyle, TX 10 years to life
A14cr300 ANTONIO NIETO 23 Austin 10 years to life
A14cr300 GERVACIO MORALES 31 Kyle 10 years to life
A14cr300 BENJAMIN TYLER GOLDBERG 26 Austin 10 years to life
A14cr300 VICTOR HUGO EXCALANO-ZUVIETA 25 Austin 10 years to life
A14cr300 RICHARD PATRICK FAGERBERG 45 Austin 10 years to life
A14cr300 DAVID RAMOS 39 Austin 10 years to life
A14cr300 EUGENIO LUCIO 60 San Benito, TX 10 years to life
A14cr300 JUAN MAXIMO RUIZ 33 Brownsville, TX 10 years to lifeALREADY IN CUSTODY PRIOR TO YESTERDAY (10)
CASE # NAME AGE RESIDENCE STAT. PENALTY
A14cr292 JOSE NIETO-FIGUEROA 23 Pflugerville, TX 5 years to 40 years
A14cr292 RICARDO CRUZ 53 Pharr, TX 10 years to life
A14cr292 GERARDO DIAZ 23 Austin, TX 10 years to life
A14cr292 JUAN GONZALEZ 28 Austin 10 years to life
A14cr300 OSCAR ARMANDO AVILA-JAIMES 35 Austin 10 years to life
A14cr300 ARMANDO GUTIERREZ 40 Austin 10 years to life
A14cr300 JESUS ANGELOS DOMINGUEZ 29 Austin 10 years to life
A14cr300 OSCAR SUAREZ-LARA 29 Austin 10 years to life
A14cr300 JOSE LUIS REYES-VALLE 38 Austin 10 years to life
A14cr300 ANTONIO de JESUS
HERNANDEZ-GONZALEZ 29 Austin 10 years to lifeThree Sentenced for Roles in Fraudulent Income Tax Return Prep SchemeRead the Press Release
In Waco today, U.S. District Judge Walter S. Smith, Jr., sentenced the owner of A-Kind Bookkeeping and Tax (AKBT) located in Mexia, TX, and her daughter to federal prison for their roles in a fraudulent Income Tax Return preparation scheme announced United States Attorney Robert Pitman and IRS-Criminal Investigation Acting Special Agent in Charge William Cotter.
AKBT owner Patricia “Sissy” Foley was sentenced to two years incarceration followed by three years of supervised release and ordered to pay $842,815 restitution to the IRS after pleading guilty in June to one count of conspiracy to commit tax fraud.
Foley’s daughter, Cassandra Renee Egbert (aka Cassandra Renee Foley), was sentenced to 18 months incarceration followed by three years of supervised release and ordered to jointly pay the same amount of restitution after pleading guilty in June to one count of conspiracy to commit tax fraud.
In addition, Lana Renee Catalena (aka Lana Rene Venable) was sentenced to three years probation and ordered to pay a $4,000 fine after pleading guilty in August to one count of aiding or assisting false or fraudulent tax returns.
A fourth defendant in this case, Joshua Duane Stifle, was scheduled to be sentenced today but instead, he filed a motion to withdraw his guilty plea. In August, Stifle pleaded guilty in August to one count of aiding or assisting false or fraudulent tax returns and one count of making a false statement. Judge Smith has taken his motion under advisement.
According to court records, from January 2007 until April 15, 2010, the defendants were involved in preparing and filing fraudulent Income Tax Returns with the Internal Revenue Service in which they falsely claimed deductions and credits (i.e. head of household, first time home buyer) they knew the filer was not entitled to receive.
“While most return preparers provide excellent service to their clients, a few unscrupulous tax preparers 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 tax return preparers who falsely tell taxpayers they are eligible for tax credits that they are not entitled to receive. These sentences are a reminder that all tax professionals have to respect the law and protect the interests of their clients and the taxpaying public,” stated IRS Criminal Investigation Acting Special Agent in Charge William Cotter.
Assistant United States Attorney Greg Gloff prosecuted this case on behalf of the Government.
El Paso Man Sentenced in Malicious Destruction of A BuildingRead the Press Release
In El Paso yesterday, 22-year-old Kevin Rodriguez was sentenced to 60 months in federal prison followed by three years of supervised release and ordered to pay restitution for his role in maliciously causing destruction to the Coronado Tower Building announced United States Attorney Robert Pitman and Special Agent in Charge Robert R. Champion, Bureau of Alcohol, Tobacco, Firearms and Explosives, Dallas Field Division.
According to court records, in April 2013, Rodriguez caused a fire to be started in the Coronado Tower Building located at 6006 North Mesa in El Paso. An individual working in the building saw Rodriguez in close proximity to the fire and started chasing Rodriguez. Rodriguez fled from the building and was shortly apprehended by a chef at a restaurant located in the Coronado Towers. Rodriguez was then placed in police custody.
In July 2014, Rodriguez pled guilty to one count of maliciously damaging a building and admitted he started the fire using tissue and a lighter. The fire caused some tenants of the building to close their business or to relocate to other offices in the building.
This case was investigated by Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives and Investigators from the El Paso Fire Department Arson Unit.
San Antonio Businessman Pleads Guilty in Maverick County Bribery, Kickback and Bid-Rigging SchemeRead the Press Release
In Del Rio, 54-year-old German Garcia Cano faces up to ten years in federal prison after pleading guilty this afternoon to a bribery charge in connection with a bribery, kickback and bid-rigging scheme in Maverick County announced United States Attorney Robert Pitman and FBI Special Agent in Charge Christopher Combs.
Appearing before United States Magistrate Judge Collis White this afternoon, the owner of GGC Enterprises, Inc., pleaded guilty to one count of paying a bribe to an agent of an organization receiving federal funds. According to the court records, Maverick County paid GGC hundreds of thousands of dollars between 2009 and 2012 for leasing heavy equipment used in construction projects in Maverick County. By pleading guilty, Cano admittedly paid bribes to two Maverick County employees to insure that GGC secured those leasing contracts with Maverick County and to receive his checks from the county.
Cano, who is the 16th defendant convicted in connection with this Maverick County corruption investigation, remains on bond pending sentencing. Eagle Pass businessman Hipolito Amaya is the only defendant who has been sentenced. In March 2014, Amaya was sentenced to 41 months in federal prison followed by three years of supervised release and ordered to pay approximately $35,000 restitution for paying a bribe. The remaining defendants are scheduled for sentencing in February 2015.
This investigation is being conducted by the Federal Bureau of Investigation and the Texas Department of Public Safety. Individuals who have first-hand information about corruption, fraud, or bribery related to Maverick County are urged to contact the FBI at (210) 225-6741. Assistant United States Attorney Bryan Reeves, Katherine Griffin and Michael Galdo are prosecuting this case on behalf of the Government.
Temple Couple Sentenced to Federal Prison for Postal Theft Scheme Involving in Excess of 50,000 Pieces of United States MailRead the Press Release
More than 2,000 individuals victimized as a result of the defendants' scheme
In Waco today, 39-year-old Charles Hattenbach and 29–year-old Kathryn Hubbert were sentenced to 81 months and 48 month in federal prison, respectively, for a postal theft scheme involving more than 50,000 pieces of mail and over $500,000 in other U.S. Government property from U.S. Post Offices in approximately 80 cities and towns across Texas announced U.S. Attorney Robert Pitman and U.S. Postal Inspection Service (USPIS) Inspector in Charge Robert Weymss, Houston Division.
In addition to the prison terms, United States District Judge Walter S. Smith, Jr., ordered the defendants to pay $103,720 restitution. Judge Smith also ordered that Hattenbach and Hubbert pay a $6,000 fine and $5,000 fine, respectively, and be placed on supervised release for a period of five years after completing their prison terms.
In July, Hattenbach pleaded guilty to one count of conspiracy to steal mail, one count of bank fraud, one count of theft of Government property and three counts of aggravated identity theft. In June, Hubbert pleaded guilty to one count of conspiracy to steal mail, one count of bank fraud, one count of theft of Government property and two counts of aggravated identity theft.
According to court records, from December 2013 until March 2014, the defendants conspired to steal U.S. mail and other Government property by breaking into U.S. Post Offices and blue mail receptacle boxes located outside of post offices in an area stretching from Midland to College Station and from Dallas to San Antonio. The defendants stole credit cards, personal checks, business checks, money orders, postage, W-2s, tax returns, items which contained personal identifying information, cash, gift cards and other items belonging to more than 2,000 victims.
The defendants also devised a scheme to defraud several financial institutions, including Extraco Bank in Round Rock, TX, by endorsing and depositing stolen money orders and checks. The defendants subsequently withdrew the deposits causing the financial institutions to lose more than $80,000. The defendants also activated numerous credit cards using victims’ personal identifying information, including names, social security numbers and driver’s license numbers and dates of birth, which they had previously stolen from the mail.
The defendants targeted United States Post Offices, collection boxes, parcel lockers and post office boxes in the following cities and towns: Alvarado, Austin (Balcones, Bluebonnet, Main, McNeil, Mockingbird, Northcross, South Campus, Southeast, and Town North branches), Bangs, Belton, Blanket, Brenham, Bryan, Buchanan Dam, Buckholts, Burton, Cameron, Campbellton, Carmine, Cedar Park, Chapel Hill, Clifton, Coleman, College Station, Colorado City, Copperas Cove, Corpus Christi (Gulfway branch), Dripping Springs, Early, Elgin, Florence, Gause, Georgetown, Gustine, Harker Heights, Hearne, Heidenheimer, Hewitt, Hillsboro, Holland, Hutto, Jerrell, Jonesboro, Kemper, Killeen, Lampasas, Lawn, Leander, Ledbetter, Liberty Hill, Lockhart, Loraine, Lorena, May, McDade, Meridian, Merkel, Midland, Milano, Millican, Mound, Navasota, Nolanville, Novice, Paige, Pendleton, Pflugerville, Red Oak, Rising Star, Roby, Rockport, Rogers, Rosebud, Round Rock, Salado, San Angelo, San Marcos, Santa Anna, Sinton, Sterling City, Sweetwater, Taylor, Temple, Thorndale, Treat, Troy, Tye, Valley Mills, Waco (Highlander and Woodway branches), Walnut Springs, Washington and Weir.
“The Postal Inspection Service has sought those who steal mail for hundreds of years. The ability to use the mail in a safe and secure manner is at the core of the Postal Inspection Service's mission,” stated USPIS Inspector in Charge Robert Weymss.
This case resulted from an investigation conducted by USPIS and the Bell County Organized Crime Task Force (BCOTF). The BCOTF is comprised of investigators from the United States Marshals Service, Bell County Sheriff’s Office and police departments from Temple, Belton, Killeen, Copperas Cove and Harker Heights. Assistant United States Attorney Greg Gloff prosecuted this case on behalf of the Government.
Copperas Cove Man Sentenced to 30 Years in Federal Prison for Production and Distribution of Child PornographyRead the Press Release
In Waco today, U.S. District Judge Walter S. Smith, Jr. sentenced 32-year-old Daniel Ethan Clark to 30 years in federal prison followed by ten years of supervised release on child pornography charges announced United States Attorney Robert Pitman and FBI Special Agent in Charge Christopher H. Combs.
On July 3, 2014, Clark pleaded guilty to one count of production of child pornography and one count of distribution of child pornography. According to court records, in April 2014, the defendant, seeking images of child pornography in return, sent an email which contained child pornography images to an undercover officer.
On April 1, 2014, FBI agents executed a search warrant at the defendant’s Copperas Cove residence and seized a cell phone belonging to the defendant. A subsequent forensics examination of the cell phone revealed the presence of approximately 7,000 images and videos depicting child pornography. By pleading guilty, Clark admitted to producing and distributing numerous images and videos of minor females, namely a 7-year-old and 13-year-old, engaged in sexually explicit conduct.
Clark’s wife, Michelle, is charged by federal indictment with one count of sexual exploitation of children for allegedly knowing about, and even participating in, her husband’s actions. Upon conviction, Michelle Clark faces between 15 and 30 years in federal prison. Michelle Clark remains in federal custody pending trial. She is currently set for jury selection on November 3, 2014.
This investigation was conducted by the Federal Bureau of Investigation. Assistant United States Attorney Greg Gloff is prosecuting this case on behalf of the Government.
Dallas Area Man Sentenced to Federal Prison for Murder Plot in Connection with 2013 Fort Sam Houston Shooting IncidentRead the Press Release
In San Antonio today, 29-year-old Leonard Roundtree, III, of Richardson, TX, was sentenced to five years in federal prison followed by three years of supervised release for plotting to kill his uncle’s intimate partner announced United States Attorney Robert Pitman, FBI Special Agent in Charge Christopher H. Combs, San Antonio Division, and United States Marshal Robert Almonte.
In April, a jury convicted Leonard Roundtree of one count of conspiracy to commit murder. Evidence presented in open court revealed that on June 10, 2013, Roundtree’s uncle, 52-year-old Alvin Roundtree, shot and wounded his intimate partner with a .45 caliber handgun inside the Medical Training Facility located on Fort Sam Houston Army Post. The victim, who suffered a total of seven gunshot wounds, was immediately taken into surgery and survived the incident. Authorities subsequently apprehended Alvin Roundtree while still on Fort Sam Houston and recovered the firearm. Recorded phone calls between the defendants revealed that the two conspired to hire someone to kill the victim to prevent her testimony in court. The evidence revealed that Leonard Roundtree agreed to, and in fact did, deliver information between his uncle and the hitman ultimately agreeing to pay $10,000 upon proof the murder.
In March, Alvin Roundtree pleaded guilty to one count of assaulting an officer or employee of the United States with a deadly weapon. On September 9, 2014, Chief United States District Judge Fred Biery sentenced Alvin Roundtree to the maximum 20 years in federal prison.
Assistant United States Attorneys Bettina Richardson and Joey Contreras prosecuted this case on behalf of the Government.
Austin Man Sentenced to Two Years in Federal Prison for Laser Strike IncidentRead the Press Release
In Austin today, 25–year-old Gabriel Soza Ruedas, Jr., was sentenced to two years in federal prison followed by three years of supervised release for pointing a laser at an aircraft flying overhead announced United States Attorney Robert Pitman and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
“Laser strikes can pose serious risks to flight crews, passengers, and even individuals on the ground. They are a serious public safety hazard and will be treated as such by law enforcement officials,” stated United States Attorney Robert Pitman.
On July 7, 2014, Ruedas pleaded guilty to one count of pointing a laser at an aircraft--a federal violation under the FAA Modernization and Reform Act of 2012.
According to court records, on February 15, 2014, Ruedas admittedly aimed the beam of a laser pointer at a helicopter flying overhead. That aircraft happened to be an Austin Police Department helicopter (Air1) on approach to land at Austin Bergstrom International Airport (ABIA). All of this occurred after Air1 had been cleared by air traffic control to land. Air1 delayed its landing to investigate the source of the laser. Austin Air Traffic Control issued a general warning to all pilots in the area where the laser incident occurred, which was the flight path of arriving aircraft on short final approach to ABIA.
The laser Ruedas used was strong enough to reflect inside the cockpit of Air1 causing the pilot to turn his head and avert his eyes from the laser, distracting him from normal flight operations.
The crew of Air1 communicated to ground units from the Austin Police Department (APD) information about the source of the laser strikes, enabling APD units to identify and apprehend Ruedas. Ruedas was found with the laser pointer in his sweatshirt pocket and arrested. He has since remained in federal custody.
“The sentence handed down today reinforces our message to the public: Shining a hand-held laser at an aircraft is a serious, illegal act that exposes both air crew and the public on the ground to severe risk,” said Special Agent in Charge Christopher Combs of the San Antonio Division of the FBI. “Hand-held lasers are well labeled to inform owners of their potential risk to health and safety. Ignorance or curiosity is no excuse for such reckless action, and we are committed to working with our law enforcement partners to locate and identify individuals who have total disregard for life and safety.”
This case resulted from an investigation conducted by agents with the Federal Bureau of Investigation together with the Austin Police Department and the Texas Attorney General’s Office. Assistant United States Attorney Gregg Sofer prosecuted this case on behalf of the Government.
San Antonio Man Sentenced to Federal Prison in Aggravated Identity Theft and Mail Fraud SchemeRead the Press Release
In San Antonio today, 31-year-old Michael Floyd White was sentenced to 39 months in federal prison followed by three years of supervised release and ordered to pay $112,362 restitution for his role in an aggravated identity theft and mail fraud scheme announced United States Attorney Robert Pitman and Special Agent in Charge Steven McCullough, Internal Revenue Service Criminal Investigation, San Antonio Field Office.
By pleading guilty to one count of mail fraud and one count of aggravated identity theft, White admitted that from January 2011 to February 2012, he and 30–year-old co-defendant Sasha Cher-Von Beckett knowingly devised a scheme to defraud the Internal Revenue Service by submitting fraudulent Income Tax returns seeking refunds totaling approximately $160,000. Throughout the scheme, White and Beckett would use names, dates of birth and social security numbers of other individuals to electronically file numerous Income Tax returns, then collect the refunds by using the debit card option and having those debit cards mailed directly to them.
Beckett awaits sentencing after pleading guilty to the one count each of mail fraud, aggravated identity theft and access device fraud. She faces up to 20 years in federal prison for mail fraud and access device fraud. She also faces a mandatory two years in federal prison for aggravated identity theft. Beckett is scheduled to be sentenced at 1:30pm on October 22, 2014, before United States District Judge Xavier Rodriguez.
“IRS Criminal Investigation continues our emphasis on vigorously investigating refund fraud and identity theft. This deliberate fraud can impede honest taxpayers from receiving their lawful refund and causes monetary loss to the U.S. Treasury. Today’s sentencing of Mr. White should serve as a strong warning to those who are considering similar illegal conduct. Those who engage in these fraudulent activities will be held accountable for their criminal actions,” stated IRS Criminal Investigation Special Agent in Charge Steven McCullough.
This case was investigated by special agents with the IRS Criminal Investigation together with the San Antonio Police Department. Assistant United States Attorney Tom Moore is prosecuting this case on behalf of the Government.
Former McLennan County Justice of the Peace Pleads Guilty to Federal Theft ChargeRead the Press Release
In Waco today, former McLennan County Justice of the Peace Erma Jean Laster Boone pleaded guilty to theft of Government property in connection with a scheme to steal Social Security Income benefits announced United States Attorney Robert Pitman.
According to court records, Robert Martin Davis died on May 27, 2010, and the defendant was the reporting party on Davis’ death certificate. From Davis’ death until October 2013, the Social Security Administration continued to deposit Social Security benefits, which totaled approximately $63,000, into Davis’ bank account. The defendant had access to Davis’ bank account. Boone admitted to authorities that she spent over $16,000 from Davis’ account on “fixing stuff up around the house.” In March 2014, Boone paid back to the Social Security Administration the money she had fraudulently embezzled and used.
Boone remains on bond pending sentencing which is scheduled for 1:00pm on November 19, 2014. She faces up to ten years in federal prison and a maximum $250,000 fine.
This investigation was conducted by the United States Social Security Administration, Office of Inspector General. Assistant United States Attorney Greg Gloff is prosecuting this case on behalf of the Government.
Round Rock Business and Management Indicted for Allegedly Employing Undocumented AliensRead the Press Release
In Round Rock, TX, today, federal authorities arrested Richard Anthony Corrales, 55–year-old President of CORTEC Precision Sheet Metal, Inc., and two others for allegedly employing undocumented aliens announced Robert Pitman, United States Attorney for the Western District of Texas, and Janice Ayala, Special Agent in Charge for Homeland Security Investigations (HSI) in San Antonio.
A two-count federal grand jury indictment, unsealed today, charges Corrales, CORTEC, 44-year-old old CORTEC brake operator Leopoldo Yepez, and 42–year-old CORTEC Human Resources Manager Mon Prum Cerda with one count of harboring undocumented aliens and one count of unlawful employment of undocumented aliens.
The indictment alleges that beginning in September 2013, the defendants concealed from law enforcement undocumented aliens employed by CORTEC. According to the indictment, agents with the Department of Homeland Security (DHS) supplied the defendants with names of at least 16 undocumented aliens employed at the company and provided the defendants with 10 days notice to provide valid documentation. The indictment further states that in January 2014, the defendants knowingly employed the undocumented aliens after representing to DHS that they had been fired. In June 2014, the defendants informed DHS that many of the positions previously held by the undocumented aliens were still vacant when in fact, they were still employing undocumented aliens.
The defendants face up to ten years in federal prison if convicted of the harboring charge and up to six months in federal prison if convicted of the unlawful employment charge. CORTEC faces fines of up to $250,000 on the harboring charge and up to $3,000 for each undocumented alien employed.
“Today’s arrest of three employees of the CORTEC Precision Sheet Metal Company comes in the wake of an investigation where these individuals were knowingly hiring an illegal workforce,” said Special Agent in Charge Janice Ayala, HSI San Antonio. “Investigations of these criminal violations play an important role in HSI’s mission. Employers are encouraged to participate in the ICE Mutual Agreement between Government and Employers (IMAGE) Program, an outreach program designed to provide employers with the tools and knowledge that will enable them to hire and maintain a legal workforce.”
These charges and arrests resulted from an investigation conducted by Homeland Security Investigations (HSI). Assistant United States Attorney Douglas Gardner 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.
Federal Jury in El Paso Convicts Businessman for Small Business Administration Contract Fraud SchemeRead the Press Release
In El Paso, a federal jury convicted 55–year-old Thomas Gregory Harris of Friendswood, TX, former Sr. Vice President for Luster National Inc., yesterday afternoon of 16 counts of wire fraud in connection with a scheme to defraud the Small Business Administration (SBA) announced United States Attorney Robert Pitman and Special Agent in Charge Douglas E. Lindquist of the FBI’s El Paso Division.
SBA administers a program pursuant to the Small Business Act called the “Section 8(a) program” that is intended to promote the business development of companies owned and operated by “socially and economically disadvantaged individuals.” In that program, certain government contracts are sometimes set aside for performance by so-called “8(a) concerns,” that is, business entities whose owners/operators the SBA has determined meet the criteria for being "socially and economically disadvantaged."
In July 2010, the SBA approved a joint venture, called Tropical Luster Joint Venture ("TLJV"), between two business entities: Tropical Contracting, LLC ("Tropical"), which is based in San Antonio, and Luster National, Inc. ("Luster"), which has offices in Houston and California. The SBA had approved Tropical as an 8(a) concern in 2009. Luster was not a qualifying 8(a) concern.
Evidence presented during trial revealed that in 2010 and 2011, Harris, unbeknownst to the SBA, used Tropical’s qualifying 8(a) status to obtain three restricted contracts awarded by the SBA.
In 2011, the SBA awarded Harris and TLJV the “Net Zero contract” at Fort Bliss in El Paso to design and implement a written plan to reduce energy consumption at the base. In January 2012, the U.S. Army paid TLJV approximately $492,000 as compensation for work on the Net Zero contract.
In 2010 and 2011, the SBA awarded Harris and TLJV two separate contracts with the U.S. Army Corps of Engineers (USACE) in Galveston, TX for project management duties as assigned by USACE. From 2010 to 2012, USACE paid TLJV approximately $895,000 as compensation for work on USACE projects.
In all three matters, Tropical, the 8(a) concern, did not manage and control TLJV's performance of the contracts as required by law. In fact, personnel associated with Tropical did no work whatsoever on the contracts. Harris managed and controlled TLJV's entire performance of the contracts. Luster personnel, or subcontractors Luster retained, did all of the work. Had the SBA known that Tropical was not managing and controlling TLJV's work on any of the contracts, it would have disqualified TLJV as an approved 8(a) joint venture, which would have rendered it ineligible for the contracts to perform the work at Fort Bliss or USACE in Galveston.
“Today’s conviction of Mr. Harris, should serve as a strong message regarding the FBI’s pursuit and prosecution of vendors in the El Paso community who take advantage of socially and economically disadvantaged small businesses for self-profit. Nothing erodes the public trust more than those who illegally manipulate a contract acquisition process to benefit from taxpayer dollars,” stated FBI Special Agent in Charge Douglas E. Lindquist.
Harris is on bond pending sentencing. Sentencing is scheduled for 8:00am on December 10, 2014, before United States District Judge Philip R. Martinez in El Paso. Each wire fraud charge calls for up to 20 years in federal prison.This case was investigated by the Federal Bureau of Investigation (FBI) together with the United States Army Criminal Investigation Command, Major Procurement Fraud Unit. Assistant United States Attorneys John Klassen and Gregory McDonald are prosecuting this case on behalf of the Government.
14 El Paso Area Barrio Azteca Members and Associates Face Federal Racketerring Influenced Corrupt Organization (RICO) Conspiracy ChargeRead the Press Release
RICO Charge Alleges Murder, Extortion, Robbery, Assault, Drug Distribution, and Money Laundering
In El Paso, Barrio Azteca (BA) members and associates, including 41-year-old heroin supplier Rigoberto Alvarado of El Paso, are in custody charged with conspiracy to violate the Racketeering Influenced Corrupt Organization (RICO) statute announced United States Attorney Robert Pitman and Federal Bureau of Investigation Special Agent in Charge Douglas E. Lundquist, El Paso Division.
Today, state and federal authorities arrested eight (8) El Paso residents for their roles in the RICO conspiracy. They are: 34-year-old Raul Lopez (aka Garfield); 54-year-old Manuel Minjares (aka Manny); 43-year-old Eugene Lozano (aka Gino, Polvos); 43-year-old Gabriel Aldana (aka Mookie); 35-year-old Rito Alvarez (aka Ewok); 55-year-old Jose Minjares (aka Paz); 48-year-old Ramon Sanchez (aka Magic); and, 43-year-old Jose Angel Barrios (aka Chamuco). Alvarado and five others involved in the RICO conspiracy were already in state custody prior to today. They are: 40-year-old Fernando Madrid (aka Muneco); 34-year-old Richard Espino (aka Cricket); 45-year-old Hector Bernal (aka Bouncer); 30-year-old Eddie Mendoza (aka Raskal); and, 35-year-old Barbara Rodriguez (aka Barbie). Defendants face up to life in federal prison upon conviction of the RICO conspiracy charge.
According to the RICO indictment, the Barrio Azteca, which began in the 1980’s as a violent prison gang and has expanded into a transnational criminal organization, is primarily based in West Texas; Juarez, Mexico; and throughout state and federal prisons in the U.S. and Mexico. In furtherance of the enterprise, BA members collect a street tax, also known as “cuota,” “quota,” “renta,” or “taxes.” The proceeds from the “cuota” are used to support members of the BA who are arrested, to pay for lawyers, bail bonds, fines, and any other fees associated with legal proceedings. The proceeds from the “cuota” are also used to purchase money orders, which are mailed through the United States Postal Service (USPS) to inmate accounts. The proceeds are also reinvested back into the BA enterprise activities for the purchase of assets, commodities, and other property that are related to the day-to-day function of the BA, including firearms, ammunition, and controlled substances.
The indictment alleges that since August 2010, the defendants conspired to commit racketeering acts in furtherance of criminal enterprise including murder, attempted murder, extortion, drug distribution, and money laundering. The indictment specifically alleges that on March 25, 2012, defendant Jose Angel Barrios murdered Raymundo Puga by injecting what’s referred to by BA’s as a “hotshot,” or lethal amount of heroin, which caused a heroin overdose. Other overt acts alleged in the indictment included mailing heroin to Georgia so that it could be delivered to incarcerated BA members; purchasing money orders with criminal proceeds and sending them to incarcerated BA members; heroin and cocaine sales; and, threats to individuals for not paying cuotas or theft of cuotas.
In addition to the RICO conspiracy charge, the indictment charges: Barrios with violating the VICAR statute, or Violent Crime in Aid of Racketeering, for the murder of Puga; Alvarado and Aldana with conspiracy to import heroin; Alvarado, Aldana, Sanchez, and Rodriguez with conspiracy to distribute heroin; Rodriguez with conspiracy to distribute cocaine; and, Madrid, Lopez, Lozano, Alvarado, Aldana, Espino, Alvarez, Sanchez, and Mendoza with conspiracy to commit money laundering.
“The FBI and together with our law enforcement partners will continue to investigate gang members engaged in organized criminal activity to ensure the continued safety of our community,” stated FBI Special Agent in Charge Douglas E. Lindquist, El Paso Division.
“Organized crime, drug trafficking and gang activity pose an undeniable threat to the safety of all communities across the state. This extensive investigation is a great example of the successful partnership between DPS and our law enforcement colleagues in El Paso. We proudly work together around the clock to help prevent crime in this area and to take criminals off our streets,” stated Texas Department of Public Safety Commander Carey Matthews.
These charges and arrests resulted from a joint investigation conducted by the Federal Bureau of Investigation (FBI) and Homeland Security Investigations (HSI), together with the Texas Department of Public Safety, El Paso Police Department Gang Unit and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
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.
San Antonio Man Sentenced to Federal Prison for Murder Plot in Connection with 2013 Fort Sam Houston Shooting IncidentRead the Press Release
In San Antonio today, 52-year-old Alvin Roundtree was sentenced to the maximum 20 years in federal prison for plotting to kill his intimate partner announced United States Attorney Robert Pitman, FBI Special Agent in Charge Christopher H. Combs, San Antonio Division, and United States Marshal Robert Almonte.
Chief United States District Judge Fred Biery also ordered that Roundtree be placed under supervised release for a period of three years after completing his prison term and forfeit his military pension. Judge Biery continued the sentencing of Roundtree’s nephew and co-defendant, 29-year-old Leonard Roundtree, III, of Richardson, TX. No new sentencing date has been scheduled.
In April, a jury convicted Leonard Roundtree of one count of conspiracy to commit murder. In March, Alvin Roundtree pleaded guilty to one count of assaulting an officer or employee of the United States with a deadly weapon. Evidence presented in open court revealed that on June 10, 2013, Alvin Roundtree shot and wounded his intimate partner with a .45 caliber handgun inside the Medical Training Facility located on Fort Sam Houston Army Post. The victim, who suffered a total of seven gunshot wounds, was immediately taken into surgery and survived the incident. Authorities subsequently apprehended Roundtree while still on Fort Sam Houston and recovered the firearm. Recorded phone calls between the defendants revealed that the two conspired to hire someone to kill the victim to prevent her testimony in court. The evidence revealed that Leonard Roundtree agreed to, and in fact did, deliver information between his uncle and the hitman ultimately agreeing to pay $10,000 upon proof the murder.
Assistant United States Attorneys Bettina Richardson and Joey Contreras prosecuted this case on behalf of the Government.
Former Lohn I.S.D. Business Manager Sentenced to Federal Prison for Stealing More Than $500,000 from the School DistrictRead the Press Release
In Austin today, 58-year-old Patty E. Smith of Lohn, TX, was sentenced to two years in federal prison and ordered to pay $ 636,475.82 restitution for embezzling from the Lohn Independent School District (LISD) announced United States Attorney Robert Pitman and Special Agent in Charge R. Damon Rowe, Internal Revenue Service Criminal Investigation, Dallas Field Office.
Smith was remanded to the custody of the U.S. Marshals Service following today’s hearing to begin serving her prison term.
“Ms. Smith took advantage of her position at Lohn ISD and abused the trust of the school district and all taxpayers by stealing federal money and using it for her own purposes. IRS Criminal Investigation commends the Texas Rangers for their assistance in the investigation,” said Damon Rowe, Special Agent in Charge of IRS Criminal Investigation, Dallas Field Office. “IRS Criminal Investigation remains steadfast on focusing our efforts to ensure that these types of crimes are investigated and those abusing the public trust are held accountable.”
In June, Smith pleaded guilty to one count of tax evasion and one count of theft from an organization receiving federal funds. By pleading guilty, Smith admitted that between September 2006 and September 2012, she stole LISD funds totaling $507,075.82 and used it for her personal benefit. She also admitted to evading paying taxes on the embezzled funds, which constituted taxable income, by not disclosing it to the IRS on her yearly Income Tax returns.
According to the factual basis filed in this case, Smith did not have signature authority over any LISD financial accounts, however, she had sufficiently gained the trust of the person with signature authority to the point that that person signed blank checks for funds that Smith would subsequently complete and make payable to either “cash” or fictitious payees. Smith concealed her activities by recording false check amounts in the check register. For years 2007 through 2011, Smith’s willful evasion of taxes on the funds she stole from LISD resulted in the underpayment of income tax in the amount of approximately $129,400.
This case was investigated by special agents with the IRS Criminal Investigation with the assistance of the Texas Rangers. Assistant United States Attorney Matthew Devlin prosecuted this case on behalf of the Government.
San Antonio Man Sentenced to 220 Months in Federal Prison for Distribution of Child PornographyRead the Press Release
In San Antonio today, U.S. District Judge Orlando Garcia sentenced 23-year-old Michael Douglas Glasenapp was sentenced to 220 months in federal prison followed by a 30 years of supervised release for distribution of child pornography announced United States Attorney Robert Pitman and FBI Special Agent in Charge Christopher H. Combs.
On March 21, 2013, federal authorities executed a search warrant at the defendant’s residence. A forensics examination of computer related equipment revealed the presence of more than 400 images and 48 videos depicting child pornography some of which the defendant shared with others, including an undercover officer, via the Internet. On April 17, 2014, Glasenapp pleaded guilty to the distribution charge.
This investigation was conducted by the Federal Bureau of Investigation. Assistant United States Attorneys Sarah Wannarka and Tracy Thompson prosecuted this case on behalf of the Government.
Permian Basin Businessman Pleads Guilty to Federal Wire Fraud ChargesRead the Press Release
James Edward “Jasper” Jones, age 44, of Midland, TX, faces up to 20 years in federal prison after pleading guilty to two wire fraud charges in connection with a cattle purchasing scheme announced United States Attorney Robert Pitman and FBI Special Agent in Charge Douglas E. Lindquist.
According to court records, for approximately one year beginning in March 2011, Henry Resources retained Jones, doing business as Stampede Ranch and Lease Management (Stampede), to manage several of its ranching properties in West Texas. One such entity was JJB Lands, LLC (JJB Lands).
In approximately April 2011, Jones agreed with JJB Lands that he would purchase $250,000 worth of cattle for a ranch near Eldorado, TX, and that amount was subsequently wire transferred to a Stampede bank account. Jones’ representations to JJB Lands concerning how he would use these funds were material in JJB Lands’ decision to transfer them. In subsequent months, Stampede would invoice JJB Lands for additional purchases of cattle for this ranch, and JJB Lands paid those invoices.
In pleading guilty last Friday, Jones admitted that he did not actually use all of the money designated by JJB Lands for cattle purchases for that purpose, even though he had promised and represented otherwise. Instead, Jones diverted a large portion of the funds for other purposes, including personal expenses. When a cattle inventory was conducted in early March 2012 at the Eldorado ranch, approximately 120 head of cattle, which Jones represented to JJB Lands that he had purchased, could not be located. The Government estimates the resulting loss to JJB lands exceeded $400,000.
Jones remains on bond pending sentencing which is scheduled for 9:30am on December 5, 2014, before United States District Judge Robert A. Junell in Midland.
This investigation was conducted by the Federal Bureau of Investigation. Assistant United States Attorney John Klassen is prosecuting this case on behalf of the Government.
25 Waco Area Aryan Brotherhood Members and Associates Charged in Connection with Methamphetamine Distribution OperationRead the Press Release
In the Waco area today, federal and state authorities arrested 21 Aryan Brotherhood (AB) members and associates, including ranking AB members 54–year-old Wayne Huisinger of Belton, TX, and 39–year-old Robert Eaton of Kempner, Texas, for their roles in a methamphetamine distribution operation announced United States Attorney Robert Pitman, Federal Bureau of Investigation Special Agent in Charge Christopher H. Combs, San Antonio Division, and Drug Enforcement Administration Special Agent in Charge Joseph M. Arabit, Houston Division.
A federal grand jury indictment, unsealed this afternoon, charges 20 of the 21 arrested, as well as four others who were already in custody prior to today, with one count of conspiracy to distribute methamphetamine. Robert Helms, age 29, of Temple, TX, who was also arrested this morning, was charged today by a federal criminal complaint with possession of methamphetamine with intent to distribute. Helms faces up to 20 years in federal prison upon conviction. A list of the defendants is below.
The indictment alleges that since November 2013, the defendants conspired to distribute various amounts of methamphetamine. During this 10-month-long operation, investigators conducted several controlled methamphetamine purchases. To date, authorities have seized approximately nine pounds of “crystal” methamphetamine, 15 firearms, over $9,000 in U.S. Currency and other assets in connection with this investigation.
“These charges resulted from unprecedented collaboration of federal, state, and local law enforcement targeting a large-scale prison gang involved in violent organized crime over three counties in Central 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 regardless of where they lay their heads.”
“Operation ‘La Flama Blanca’ has inflicted a debilitating blow to the network of shadow and often violent facilitators of the Aryan Brotherhood of Texas,” said Joseph M. Arabit, Special Agent in Charge of the Drug Enforcement Administration--Houston Field Division. “This operation highlights a deliberate and strategic effort to cut off and shut down the supply of methamphetamine trafficked by the Aryan Brotherhood and the corresponding impact that this horrific drug inflicts on our communities.”
Upon conviction, the defendants face a statutory penalty of between ten years and life imprisonment for distributing more than 500 grams; between five and 40 years imprisonment for distributing between 50 grams and 500 grams; or, up to 20 years imprisonment for distributing less than 50 grams.
These charges and arrests resulted from a joint investigation conducted by the Federal Bureau of Investigation and the Drug Enforcement Administration together with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Temple Police Department, Texas Department of Public Safety, Texas Department of Criminal Justice-Office of Inspector General, McLennan County Sheriff’s Office, Coryell County Sheriff’s Office, Bell County Sheriff’s Office, Gatesville Police Department, Lampasas Police Department, Killeen Police Department and the Austin Police Department. Assistant United States Attorneys Mark Frazier and Stephanie Smith-Burris 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.
ARRESTED TODAY (21)
STATUTORY
NAME AGE RESIDENCE AMOUNT PENALTYROBERT EATON aka “Compound Rob” 39 Kempner, TX > 500 grams 10 years to life
AMANDA PETRIE 34 Temple, TX > 500 grams 10 years to life
SYLVIA O’NEAL 41 Temple > 50 grams 5 to 40 years
DAVID AGUILAR 34 Belton, TX > 50 grams 5 to 40 years
ROBERT MORGAN aka “Hopper” 44 Temple > 500 grams 10 years to life
WAYNE MARTIN HUISINGER 54 Belton > 50 grams 5 to 40 years
LOREN SWANSON 39 Belton > 50 grams 5 to 40 years
ERIC GANOS 39 Temple > 500 grams 10 years to life
DERRICK COOPER aka “Red” 34 Temple > 50 grams 5 to 40 years
KIRT EASTER 48 Belton > 50 grams 5 to 40 years
COLBY WARREN 40 Gatesville, TX > 50 grams 5 to 40 years
NICOLE MARSHALL 34 Gatesville > 50 grams 5 to 40 years
CHRISTOPHER BRECKENRIDGE 39 Gatesville > 50 grams 5 to 40 years
ROBERT BLAKE DOTY 31 Temple < 50 grams up to 20 years
SONYA WHITENBURG 22 Flat, TX > 50 grams 5 to 40 years
FARRON RUSSELL 33 Belton < 50 grams up to 20 years
VICKI KAY LEVY 51 Belton < 50 grams up to 20 years
RONNIE KNEPLER 53 Belton > 50 grams 5 to 40 years
RICKY LEVY 53 Nolanville, TX < 50 grams up to 20 years
MICHELLE JOHNSON 46 Belton < 50 grams up to 20 years
**ROBERT HELMS 29 Temple < 50 grams up to 20 yearsALREADY IN CUSTODY PRIOR TO TODAY (4)
NAME AGE RESIDENCE AMOUNT STAT. PENALTY
HENRY DAVID WALKER aka “Stalker” 52 Temple > 500 grams 10 years to life
JOHN MCLAUGHLIN 33 Temple > 50 grams 5 to 40 years
JAMES MALADY 27 Belton < 50 grams up to 20 years
OSCAR WALKER aka “Country” 29 Temple > 500 grams 10 years to life** Charged by criminal complaint.
San Antonio Area Businesswoman Pleads Guilty to Orchestrating Estimated $1.6 Million Fraud SchemeRead the Press Release
The owner and managing partner of HipDingo stores in San Antonio, Boerne and Fredericksburg and former marketing director for a land development company, Rinco of Texas, Inc. (Rinco), and Rockin’ J Ranch (Rockin’ J) faces up to 20 years in federal prison after pleading guilty to orchestrating an estimated $1.6 million wire fraud scheme announced United States Attorney Robert Pitman and FBI Special Agent in Charge Christopher H. Combs.
Appearing before United States Magistrate Judge John Primomo this afternoon in San Antonio, 47–year-old Boerne, TX, resident Lea Ann Blystone pleaded guilty to one count of wire fraud and agreed to forfeit to the government any and all HipDingo inventory, assets and equipment; five real estate properties in Kendall County (TX); and, three vehicles. By pleading guilty, Blystone admitted that from January 2009 until August 2011, she devised and implemented a scheme to defraud Rinco and Rockin’ J to obtain money and other property by means of false and fraudulent pretenses.
As marketing director for Rinco and Rockin’ J, Blystone coordinated staffing and vendor payments for promotional booths or display space at shows, malls, sporting and other events. Blystone caused Rinco and Rockin’ J to fraudulently pay her ex-husband and Rockin’ J contractor, 49-year-old Michael J. Webb of San Antonio; 48-year-old Rockin’ J contractor Karen Lindsay of Boerne; and 56-year-old Boerne resident and Rockin’ J contractor Cheryl E. Hartsfield for staffing the promotional displays. In some instances, Rinco and Rockin’ J paid for services when no promotion had been done at all at a stated location, or for work performed for the benefit of Blystone at HipDingo.
Webb, Lindsay and Hartsfield have each pleaded guilty to wire fraud and are currently awaiting sentencing. Defendants still facing charges in connection with this investigation include: 47-year-old Boerne resident and Rockin’ J contractor Roy E. Pokrant, Jr.; 47-year-old Boerne resident and Rockin’ J contractor Thomas J. Worsham; and, 48–year-old Rinco employee and HipDingo co-owner Manson Porter of Boerne. Porter is charged by indictment with three counts of wire fraud and two counts of witness tampering. Pokrant and Worsham are each charged with three counts of wire fraud. Jury selection is scheduled for October 27, 2014. Upon conviction, each wire fraud and witness tampering charge call for up to 20 years in federal prison; each forged endorsement charge, up to ten years in federal prison.
The Government is also seeking a monetary judgment in this case in the amount of $1,597,708 representing the amount of proceeds traceable to the above mentioned scheme.
This case was investigated by agents with the Federal Bureau of Investigation. Assistant United States Attorney William R. Harris is prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. Porter, Pokrant and Worsham are presumed innocent until proven guilty in a court of law.
San Antonio Man Sentenced to 20 Years in Federal Prison for Distribution of Child PornographyRead the Press Release
In San Antonio today, 42-year-old Jacob Robert Holguin (aka “Friend of Grimm”) was sentenced to 20 years in federal prison followed by a lifetime of supervised release for distribution of child pornography announced United States Attorney Robert Pitman and FBI Special Agent in Charge Christopher Combs.
On November 30, 2012, federal authorities executed a search warrant at the defendant’s residence. A forensics examination of computer related equipment revealed the presence of more than 2,400 images and approximately 500 videos depicting child pornography some of which the defendant shared with others, including an undercover officer, via the Internet. On June 5, 2013, Holguin pleaded guilty to the distribution charge.
This investigation was conducted by the Federal Bureau of Investigation. Assistant United States Attorneys Sarah Wannarka and Tracy Thompson prosecuted this case on behalf of the Government.
Federal Grand Jury Indicts Two Odessans in Bank Fraud SchemeRead the Press Release
The owner and office manager of Shorts Electric, an Odessa company the provided oilfield and residential electric services, are in federal custody charged in connection with an estimated $400,000 bank fraud scheme announced United States Attorney Robert Pitman, Special Agent in Charge Laurie L. Younger, FDIC Office of Inspector General, Dallas Region, and FBI Special Agent in Charge Douglas E. Lindquist, El Paso Division.
A federal grand jury indictment unsealed yesterday charges 44-year-old Shorts Electric owner Lanny Wayne McDorman and 46–year-old Justine Jane Woods with one count of bank fraud. The indictment alleges that from June 2012 until March 2014, the defendants knowingly defrauded Commercial State Bank (CSB). According to the indictment, Shorts Electric had a Business Manager Reserve Account (BMRA) in which CSB would purchase, at a discount, Shorts Electric accounts receivable and transfer the purchase money into the BMRA, thereby allowing Shorts Electric immediate access to operating funds without having to wait for customers invoices to be paid. Full payment on the purchased Shorts Electric invoices would then be obligated to CSB. The indictment alleges that the defendants created and submitted to CSB numerous fraudulent invoices knowing that those invoices would be uncollectable because they did not represent actual money owed to Shorts Electric.
McDorman and Woods face up to 30 years in federal prison and a maximum $1 million fine upon conviction.
“Working alongside our law enforcement partners, we will continue to focus on finding, stopping, and punishing those who commit fraud schemes that impact our financial institutions,” stated FDIC-OIG Special Agent in Charge Laurie L. Younger.
“Bank fraud has the potential to cause immeasurable damage to our community and the FBI will continue to rigorously investigate these allegations with our law enforcement partners. The arrests of these individuals will send notice that the FBI will continue to protect the community from schemes to defraud financial institutions insured by the FDIC,” stated FBI Special Agent in Charge Douglas E. Lindquist.
The defendants, who were arrested by FDIC-OIG and FBI agents yesterday, remain in federal custody awaiting an arraignment and detention hearing scheduled for 3:00pm on September 9, 2014, before United States Magistrate Judge David Counts in Midland.
Assistant United States Attorney John Klassen 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.
Federal and State Authorities Arrest 22 in Connection with Austin Area Steroid Distribution OperationRead the Press Release
In the Austin area today, federal and state authorities arrested 22 individuals, including ringleaders 54–year-old Timothy John Bruner of Leander, Texas, and 23-year-old Ryan Robert Rowland of Round Rock, Texas, in connection with a steroid distribution operation announced United States Attorney Robert Pitman and Drug Enforcement Administration Special Agent in Charge Joseph M. Arabit, Houston Division.
Six of those arrested were charged by federal criminal complaints unsealed today; the remaining 16 individuals face state charges. In addition to Bruner and Rowland, those charged by federal criminal complaint include: 42-year-old Ronald Marion Butsch of Austin; 47-year-old Dan Lee of Austin; 49-year-old Timothy John Moore of Austin; and, 58-year-old Don Glen Zachary of Austin.
Each is charged with conspiracy to possess with intent to distribute a controlled substance. The criminal complaints allege that since January 2014, the defendants conspired to distribute more than 1,000 dosage units of steroids in tablet form (Anavar and Winstrol) and over 200 10cc vials of steroids in liquid form (Testosterone, Deca Durabolin and Trenbolone).
“The success of Operation Blue Juice exemplifies the outstanding cooperation and coordination among federal, state and local law enforcement agencies. DEA has worked closely with our law enforcement partners in the state of Texas and around the country in order to enhance the impact on this drug trafficking organization while increasing the quality of life in the surrounding communities of Austin,” said Joseph M. Arabit, Special Agent in Charge of the Drug Enforcement Administration-Houston Field Division.
Upon conviction, the defendants face up to 20 in federal prison and a maximum $250,000 fine.
During this eight-month-long operation, investigators conducted several controlled purchases of steroids from Bruner and Rowland. To date, authorities have seized significant amounts of steroids, $300,000 in U.S. Currency and other assets in connection with this investigation.
These charges and arrests resulted from an investigation conducted by the Drug Enforcement Administration, Texas Department of Public Safety, Cedar Park Police Department, Austin Police Department, Williamson County Sheriff’s Office and the Williamson County Constable’s Office—Pct. 2. Assistant United States Attorney Mark Marshall is prosecuting this case on behalf of the Government.
A criminal complaint is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Sinaloa Cartel Bodyguard Sentenced to Federal Prison for MurderRead the Press Release
In El Paso, 29-year-old Rigoberto Ruiz-Alatorre, an admitted drug trafficker and former bodyguard for Sinaloa narcotrafficker Gabino Salas-Valenciano (aka “El Ingeniero”), was sentenced to 28 years in federal prison and fined $5,000 for murdering a member of his drug trafficking organization announced United States Attorney Robert Pitman, Drug Enforcement Administration Special Agent in Charge Will Glaspy, El Paso Division, and Federal Bureau of Investigation Special Agent in Charge Douglas E. Lindquist, El Paso Division.
On May 16, 2014, the third day of his trial on federal drug and firearms charges, Ruiz-Alatorre pleaded guilty to one count of murder resulting from the use or carrying of firearms during and in relation to a drug trafficking crime. By pleading guilty, Ruiz admitted to trafficking over 1,000 kilograms of marijuana in both the Western District of Texas and the District of New Mexico from 2002 to 2006; and, while in Albuquerque, NM, in July 2006, he shot and killed Roswell, NM, resident Fermin Rodriguez-Gonzalez to facilitate his narcotics trafficking operation and to prevent Rodriguez-Gonzalez from providing law enforcement with details of Ruiz’ narcotics trafficking activities.
This joint investigation was conducted by the Drug Enforcement Administration (DEA) and the Federal Bureau of Investigation (FBI) together with the United States Border Patrol (USBP), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Homeland Security Investigations (HSI) and the Bernalillo County (NM) Sheriff’s Office.Former Bank Officer Sentenced to 30 Months in Federal PrisonRead the Press Release
In Waco today, 34-year-old Cory Cole of Itasca, TX, was sentenced to 30 months in federal prison for embezzling money from the Citizens State Bank (CSB) announced United States Attorney Robert Pitman.
In addition to the prison term, United States District Judge Walter S. Smith, Jr. ordered that Cole pay a $50,000 fine and be placed under supervised release for a period of five years after completing his prison term. Yesterday, Cole paid $175,000 restitution to the bank.
On July 3, 2014, Cole pleaded guilty to one count of theft or embezzlement by a bank employee. By pleading guilty, Cole admitted that beginning in January 2013, while serving as a CSB vice president, he stole bank funds by approving more than 20 loans based on fraudulent documentation he created.
Cole remains on bond pending notification of Bureau of Prisons facility designation.
This case was investigated by the U.S. Secret Service and the Texas Department of Public Safety. Assistant United States Attorney Gregg Gloff prosecuted this case on behalf of the Government.
El Paso Man Sentenced to Life in Federal Prison on Human Trafficking ChargesRead the Press Release
In El Paso today, 54-year-old Charles Marquez was sentenced to life in federal prison and fined $10,000 for his role in a prostitution scheme involving a minor announced United States Attorney Robert Pitman, Federal Bureau of Investigation Special Agent in Charge Douglas E. Lindquist and Homeland Security Investigations (HSI) Special Agent in Charge Dennis A. Ulrich.
On November 21, 2013, a federal jury convicted Marquez of one count each of sex trafficking of a minor; sex trafficking by force, fraud or coercion; transporting for prostitution; conspiracy to coerce or entice a minor to engage in sexually explicit activity; coercion or enticement; and, importation of an undocumented alien for immoral purpose.
Testimony during trial revealed that from August 2007 through February 2012, Marquez conspired with 41-year-old Martha Jimenez Sanchez of Juarez, Mexico, to recruit women in Mexico for their prostitution scheme by placing advertisements in a Ciudad Juarez newspaper offering jobs in the United States. Once recruited, the defendants arranged to transport the females to El Paso, harbor them in local motels and force them to commit prostitution for the financial benefit of the defendants.
“The sentencing of Marquez is an affirmation of the dedication, commitment, and hard work of the FBI, HSI, and our state and local partners to work diligently in keeping the El Paso Community safe. Collectively, we will continue to seek out, investigate and prosecute those individuals and criminal enterprises that target the underprivileged and children for Human Trafficking,” stated FBI SAC Douglas E. Lindquist, El Paso Division.“HSI is relentless in its investigations of transnational criminal organizations that exploit immigrants and children for their own financial gain,” said HSI SAC Dennis A. Ulrich, El Paso Division. “HSI will continue to work effectively with our other federal partners as well as our international counterparts to identify and dismantle human trafficking rings.”
Sanchez faces up to ten years in federal prison after pleading guilty on November 26, 2012, to one count of transportation for prostitution. Sanchez, who was released on bond after pleading guilty, is a fugitive.
This case was investigated by the FBI together with HSI as part of the nationwide Operation Cross Country which focuses on child prostitution. Assistant United States Attorney Rifian Newaz and Steve Spitzer are prosecuting this case on behalf of the government.
Cincinnati, Ohio Man Sentenced to 15 Years in Federal Prison on Drug and Firearms ChargesRead the Press Release
In Waco today, 31-year-old Rodney Davis of Cincinnati, OH, was sentenced to 15 years in federal prison followed by five years of supervised release and fined $3,000 for his role in a drug distribution operation announced United States Attorney Robert Pitman and Texas Department of Public Safety Director Steve McCraw.
On June 26, 2014, U.S. District Judge Walter S. Smith convicted Davis of possession with intent to distribute cocaine, possession of a firearm during the commission of a drug trafficking crime and possession of a firearm by a convicted felon. Testimony during the bench trial revealed that on August 6, 2013, Davis was stopped by a Texas Department of Public Safety trooper just outside of Centerville in Leon County. A search was conducted after a canine unit alerted on Davis’ vehicle. During the search, the trooper discovered approximately six kilograms of cocaine and a .40 caliber Smith and Wesson semi-automatic firearm. Davis’ criminal history includes a 2001 robbery conviction in Hamilton County, Ohio.
This case was investigated by the Texas Department of Public Safety Criminal Investigations Division. Assistant United States Attorney Mary Kucera prosecuted this case on behalf of the Government.
Final Defendant Sentenced to Federal Prison in San Antonio's Duffle Bag Mafia Drug Distribution/Firearms Smuggling OperationRead the Press Release
In San Antonio, 37-year-old Jesus Carmona of San Antonio received 101 months in federal prison for his role in a drug distribution and firearms smuggling operation announced United States Attorney Robert Pitman, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Robert Elder, Houston Division, Homeland Security Investigations (HSI) Special Agent in Charge Janice Ayala, San Antonio Division and San Antonio Police Chief William McManus.
During yesterday’s sentencing hearing, United States District Judge Xavier Rodriguez sentenced Carmona to 41 months incarceration for possession with intent to distribute a controlled substance and 60 months incarceration for possession of a firearm during a drug trafficking crime.
Charges against Carmona and nine other individuals stem from parallel investigations by ATF, HSI and SAPD which focused on firearms straw purchasing, violent gang activity and drug trafficking by members and associates of the Duffle Bag Mafia in San Antonio.
On September 26, 2013, Carmona pleaded guilty to the charges, admitting that he supplied co-defendants marijuana and cocaine in exchange for firearms. According to court records, one of those firearms, an AK-47 assault rifle, was previously used by 25-year-old Arnoldo Lopez (a.k.a. “Looney”), a member of the Duffle Bag Mafia, in a drive-by shooting on April 1, 2012, that resulted in the death of Joshua Arturo Pagan and Anthony Guevarro. That firearm was subsequently smuggled to the Los Zetas cartel in Mexico.
Last month, Lopez was sentenced to 40 years in federal prison for various drug and firearms offenses. On September 5, 2013, Lopez pleaded guilty to possession with intent to distribute “crack” cocaine, possession of a firearm during a drug trafficking crime and six counts of making a false statement during the purchase of a firearm. According to court records, on October 4, 2012, Lopez and others were apprehended by the San Antonio Police Department Gang Unit while in possession of distributable quantities of “crack” cocaine as well as four firearms including one assault rifle, two shotguns and a semi-automatic pistol. Prior to his arrest, HSI agents were investigating a firearms straw purchasing operation wherein Lopez directed other individuals to purchase dozens of firearms under false pretenses. The weapons purchased included AK-47 and AR-15 type assault rifles which were destined for the Los Zetas cartel.
On August 7, 2014, 33-year-old Yolanda Hernandez was sentenced to 75 months incarceration after pleading guilty to possession with intent to distribute “crack” cocaine and possession of a firearm during a drug trafficking crime.
On February 26, 2014, 31-year-old Michael Gutierrez was sentenced to 248 months in federal prison for his role in the drug distribution scheme. Six co-defendants in the firearms straw purchasing scheme have been sentenced to terms ranging from three years probation to 57 months in federal prison.
“This investigation is an outstanding example of where cooperative efforts of ATF, HSI, and the San Antonio Police Department can lead. Anytime we get criminals of this magnitude off the streets is a good day for our citizens,” stated ATF SAC Robert Elder.
“Those who engage in and/or facilitate the straw purchasing and smuggling of weaponry, and related items, will face serious consequences. HSI, ATF, and our law enforcement partners are dedicated to making communities safer by bringing violent criminals to justice and preventing or seizing firearms before they fall into the hands of transnational criminal organizations who pose a threat to public safety both here and abroad,” stated HSI SAC Janice Ayala.
“The best police work in the world is all for naught without a successful prosecution. We thank all of our law enforcement partners for the teamwork, and we thank the U.S. Attorney’s Office for their guidance and hard work. This criminal organization repeatedly demonstrated their total disregard for the law and we are proud to be part of the effort to dismantle them and bring them to justice,” stated San Antonio Police Chief William McManus.
Assistant United States Attorneys Russell Leachman and Bettina Richardson prosecuted these cases on behalf of the Government.
San Antonio Tax Protester Sentenced to Federal Prison for Tax EvasionRead the Press Release
In San Antonio today, U.S. District Judge Orlando Garcia sentenced Daniel Isiah Thody to 90 months in federal prison followed by three years of supervised release and ordered him to pay $162,857.00 restitution to the Internal Revenue Service announced United States Attorney Robert Pitman, Internal Revenue Service--Criminal Investigation Special Agent in Charge Steven McCollough and Federal Bureau of Investigation Special Agent in Charge Christopher Combs.
On November 8, 2013, a jury convicted Thody on five counts of tax evasion. The jury found that Thody willfully evaded and failed to file income tax returns for calendar years 2006 through 2010. According to evidence presented at trial, Thody intentionally tried to conceal from the IRS his true income by using another individual’s bank account as well as the name of a nominee company--WET Publishing—a company created by his father to produce anti-government publications. During trial, Thody claimed that the IRS had no authority to tax him.
“Hard working taxpayers should not have to shoulder the burden for those such as Mr. Thody who willfully and deliberately neglect to meet their tax obligations as citizens of this great nation. Today’s sentencing should give pause to those that may be attracted to the illusive claim that there is no legal requirement to pay federal income tax,” stated IRS-CI Special Agent in Charge Steven McCollough. “The law is crystal clear on this matter, there is no gray area and the courts have consistently upheld the tax law. IRS Criminal Investigation continues its commitment to aggressively identify and pursue those taxpayers who willfully fail to file their tax returns.”
This case was investigated by the Internal Revenue Service—Criminal Investigation and the Federal Bureau of Investigation. Assistant United States Attorneys Mark Roomberg and William R. Harris prosecuted this case for the government.
Former San Antonio Business Comptroller Sentenced to Federal PrisonRead the Press Release
In San Antonio today, former Watermark Group comptroller Monica R. Richardson, age 39, was sentenced to 37 months in federal prison followed by three years of supervised release in connection with an embezzlement scheme underlying her failure to remit company withholding taxes announced United States Attorney Robert Pitman and Internal Revenue Service--Criminal Investigation Special Agent in Charge Steven McCollough.
In addition to the prison term, United States District Judge Orlando Garcia ordered that Richardson pay $65,551.34 restitution to the Internal Revenue Service—the amount of personal tax due based on her embezzled income. Judge Garcia also ordered Richardson to report to federal authorities on or before October 15, 2014, to begin serving her prison term.
In July 2013, Richardson pleaded guilty to one count of failure to account for and pay payroll taxes. By pleading guilty, Richardson admitted that she stole over $287,000 from Watermark and caused Watermark to fail to account for and pay the Internal Revenue Service payroll taxes due.
This case was investigated by the Internal Revenue Service-Criminal Investigation and prosecuted by Assistant United States Attorney William R. Harris.
Federal Jury Convicts San Antonio Man for Sex Trafficking of MinorsRead the Press Release
In San Antonio today, a federal jury convicted 38–year-old Marcus Deshawn Wright for his role in prostituting two minor females last year announced United States Attorney Robert Pitman, Special Agent in Charge Christopher Combs of the FBI’s San Antonio Division and Texas Attorney General Greg Abbott.
The jury convicted Wright of two counts of sex trafficking of minors and one count of production of child pornography. Evidence presented during the trial revealed that Wright and his codefendants, 22-year-old Malcolm Deandre Copeland and 20-year-old Amber Doak, both of San Antonio, were involved in a scheme beginning in August 2013 to entice and encourage minors into engaging in sexual acts for money. Wright recruited two minor females to engage in commercial sex in San Antonio and Corpus Christi for his financial gain. Wright also produced multiple videos which depicted sexual activity involving a minor.
Wright, who remains in federal custody, faces between ten years and life in federal prison for sex trafficking of minors and between 15 and 30 years in federal prison for production of child pornography. He is scheduled to be sentenced on January 16, 2015.On July 23, 2014, a federal jury convicted Copeland of two counts of sex trafficking of minors. Doak pleaded guilty in March 2014 to one count of sex trafficking of minors. Each faces between ten years and life in federal prison. Sentencing for Copeland and Doak is scheduled for December 4, 2014, and September 12, 2014, respectively.
The remaining co-defendant—41–year-old New Hampshire resident Raymond Valas—awaits jury selection and trial scheduled for November 17, 2014, before U.S. Chief District Judge Fred Biery. Valas is charged with one count of sex trafficking of a minor.
This case was investigated by the Federal Bureau of Investigation (FBI) together with the San Antonio Police Department. Assistant United States Attorney Bettina Richardson and Special Assistant United States Attorney Geoff Barr from the Texas Attorney General’s Office are prosecuting this case on behalf of the Government.
Del Rio Man Sentenced to 25 Years in Federal Prison in Child Porn CaseRead the Press Release
Law Enforcement testimony revealed the defendant possessed 1,000 videos and 100 images depicting child pornography
In Del Rio today, a former teacher at Calderon Elementary in the San Felipe Independent School District was sentenced to 25 years in federal prison for possession and distribution of child pornography announced United States Attorney Robert Pitman and Homeland Security Investigations (HSI) Special Agent in Charge Janice Ayala.
In addition to the prison term, United States District Judge Alia Moses ordered that 40-year-old Ruben A. Vazquez pay a $ 5,000 fine and be placed under supervised release for ten years after completing his prison term.
On August 22, 2013, a jury convicted Vazquez of one count of receipt of child pornography, one count of distribution of child pornography and one count of access with the intent to view child pornography. Evidence presented during trial revealed that Vazquez was using peer to peer file sharing programs to access, receive and distribute videos of child pornography. During trial, law enforcement officers testified that Vazquez admitted to them that he had over 1,000 images and over 100 videos of child pornography.
On June 21, 2012, HSI special agents executed a search warrant at the defendant’s residence and seized several computers and related equipment. According to court records, a forensics evaluation of the seized items revealed the presence of child pornography videos that depict minors engaging in sexually explicit conduct along with evidence of child pornography files that had previously resided on the computer.
“The prevention and investigation of the exploitation of minors is a priority for HSI,” said Special Agent in Charge Janice Ayala, HSI San Antonio. “These investigations are pursued by dedicated special agents who not only work with the United States Attorney's Office to bring predators to justice, but work tirelessly to prevent these crimes through extensive outreach and education.”
This case was investigated by HSI agents together with the investigators from the Beaumont Police Department. Assistant United States Attorneys Meghan McCalla, Ralph Paradiso and Matthew Watters prosecuted this case on behalf of the Government.
New Braunfels Ammo Smuggler Sentenced to Federal PrisonRead the Press Release
In Del Rio today, 23-year-old Jesus Cardenas of New Braunfels, TX, was sentenced to six years in federal prison followed by three years of supervised release and ordered to pay a $4,000 fine for smuggling ammunition from the United States announced U.S. Attorney Robert Pitman and Homeland Security Investigations Special Agent in Charge Janice Ayala.
In February, a federal jury convicted the defendant and his 34-year-old brother, Luis Cardenas, of two counts of smuggling ammunition from the United States. The jury also convicted Jesus Cardenas of two counts of smuggling ammunition and magazines from the United States.
Evidence presented during the three-day-trial showed that on two separate occasions between November 2011 and January 2012, Jesus Cardenas purchased, on behalf of an individual in Piedras Negras, Mexico, a total of more than 15,000 rounds of ammunition and 400 assault rifle magazines intended for export to Mexico. Furthermore, Luis Cardenas was paid to transfer the ammunition to 31-year-old San Antonio Jason Vega who then transported it to Del Rio.
On December 1, 2011, United States Border Patrol agents seized part of the ammunition along with 23 assault rifles within yards of the Rio Grande River outside Del Rio. Special Agents with Homeland Security Investigations seized additional ammunition and magazines in January 2012.
Luis Cardenas is scheduled to be sentenced on February 9, 2015, before U.S. District Judge Alia Moses in Del Rio. On May 27, 2014, Judge Moses sentenced Vega to 54 months in federal prison and ordered him to pay a $1,500 fine. Prior to trial, Vega pleaded guilty to being a convicted felon in possession of approximately 4,300 rounds ammunition on November 17, 2011.
“HSI is committed to preventing weapons and ammunition from reaching the hands of transnational criminal enterprises that pose a threat to public safety in the United States and abroad,” said Special Agent in Charge Janice Ayala, HSI San Antonio. “HSI special agents will continue working jointly with our law enforcement partners and utilize our expertise in export enforcement to keep our citizens safe and secure.”
This case resulted from an investigation by Homeland Security Investigations (HSI) together with United States Customs and Border Protection, United States Border Patrol and the Federal Bureau of Investigation. Assistant United States Attorneys Lewis Thomas and Patrick Burke prosecuted this case for the Government.Federal Jury Convicts El Paso Man in Laser Strike IncidentRead the Press Release
El Paso resident Don Ray Dorsett, age 28, faces up to five years in federal prison after a jury convicted him of pointing a laser at an aircraft flying overhead announced United States Attorney Robert Pitman and FBI Special Agent in Charge Douglas E. Lindquist, El Paso Division.
In February 2012, President Barrack Obama signed the “FAA Modernization and Reform Act of 2012” and added a new provision that makes it a federal crime to aim a laser pointer at an aircraft. Yesterday afternoon, jurors convicted Dorsett of violating that provision (Title 18 United States Code Section 39A—Aiming a Laser Pointer at an Aircraft). Evidence presented during trial revealed that on January 4, 2014, Dorsett knowingly aimed the beam of a laser pointer at a helicopter flying overhead. The aircraft belonged to the Texas Department of Public Safety.
Sentencing is scheduled for October 2, 2014, before United States District Judge David C. Guaderrama in El Paso.
This indictment resulted from an investigation conducted by agents with the Federal Bureau of Investigation together with the Texas Department of Public Safety and the El Paso Police Department. Assistant United States Attorney Stanley Serwatka is prosecuting this case on behalf of the Government
Reported incidents of laser strikes are on the rise. Since the FBI and the Federal Aviation Administration (FAA) began tracking laser strikes in 2005, statistics reflect a more than 1,100% increase in the deliberate targeting of aircraft by people with handheld lasers. In 2013, there were a total of 3,960 laser strikes reported – an average of almost 11 incidents per day.
Earlier this year, the FBI announced the inception of the Laser Threat Awareness Campaign, a nationwide effort led by the FBI in collaboration with the Air Line Pilots Association, Int’l (ALPA) and the FAA to raise awareness of aircraft laser illumination threats. If you have information about a lasing incident, contact the El Paso FBI at 915-832-5000. 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.
South Texas Tax Preparer Sentenced to Federal PrisonRead the Press Release
In Del Rio, 34-year-old John Andrew Cardenas of Uvalde, TX, was sentenced to three years in federal prison followed by one year of supervised release and ordered to pay $97,445.95 restitution to the IRS after pleading guilty to preparing fraudulent Income Tax Returns announced U.S. Attorney Robert Pitman and Internal Revenue Service-Criminal Investigation Special Agent in Charge Steven McCollough.
Cardenas is the owner and operator of Cardenas Income Tax Service with offices in Uvalde, Crystal City, Kingsville and Corpus Christi. On August 29, 2013, Cardenas pleaded guilty to one count of aiding and abetting the preparation of a false and fraudulent tax return. By pleading guilty, Cardenas admitted that he knowingly and intentionally prepared tax returns for calendar years 2007, 2008 and 2009 which fraudulently claimed that the taxpayers operated fictitious businesses in order to generate larger tax refunds for the taxpayers.
In addition to the prison term and restitution, Cardenas has expressly consented to a permanent injunction barring him from preparing, filing, or assisting in the preparation of, income tax returns in the future.
“IRS-Criminal Investigation will continue to vigorously pursue unscrupulous return preparers, such as Mr. Cardenas, who abuse their position of trust and prepare fraudulent tax returns. These criminal actions are effectively stealing from hard-working, honest taxpayers who pay their fair share. Taxpayers expect that individuals who present themselves as qualified return preparers will prepare their tax returns accurately and with integrity,” stated IRS-CI Special Agent in Charge McCollough.
Assistant United States Attorneys Bryan N. Reeves and Jay Hulings prosecuted this case on behalf of the Government.
Federal Jury Convicts San Antonio Man for Sex Trafficking of MinorsRead the Press Release
In San Antonio today, a federal jury convicted 22–year-old Malcolm Deandre Copeland for his role in prostituting two minor females last year announced United States Attorney Robert Pitman, Special Agent in Charge Christopher Combs of the FBI’s San Antonio Division and Texas Attorney General Greg Abbott.
The jury convicted Copeland of two counts of sex trafficking of minors. Evidence presented during the trial revealed that Copeland and others were involved in a scheme to entice and encourage minors into engaging in sexual acts for money. Specifically, jurors found that Copeland, in August and September of 2013, knowingly placed photos of two minors on an Internet website which advertised prostitution services under the pretext of “escorts.” Jurors also found that Copeland transported the minors to multiple locations in San Antonio as well as Corpus Christi to engage in commercial sex.
Copeland, who remains in federal custody, faces between ten years and life in federal prison when he is sentenced on December 4, 2014.
One of Copeland’s co-defendants, 20-year-old Amber Doak of San Antonio, pleaded guilty in March 2014 to one count of sex trafficking of minors and is currently awaiting sentencing scheduled for September 12, 2014. She faces between ten years and life in federal prison.
Two remaining co-defendants—38-year-old San Antonio resident Marcus Deshawn Wright and 41–year-old New Hampshire resident Raymond Valas—await jury selection and trial scheduled for August 18, 2014, and November 17, 2014, respectively, before U.S. Chief District Judge Fred Biery. Wright is charged with two counts of sex trafficking of minors and one count of production of child pornography. Valas is charged with one count of sex trafficking of a minor.
This case was investigated by the Federal Bureau of Investigation (FBI) together with the San Antonio Police Department. Assistant United States Attorney Bettina Richardson and Special Assistant United States Attorney Geoff Barr from the Texas Attorney General’s Office are prosecuting this case on behalf of the Government.Son and Business Associate of Defendant in Los Zetas Money Laundering Case Sentenced to Federal Prison for Conspiring to Bribe A Federal JudgeRead the Press Release
In Austin, 26–year-old Francisco Agustin Colorado Cebado (aka “Panchito”) and 52–year-old Ramon Segura Flores were each sentenced to a year and a day in federal prison and ordered to pay a $10,000 fine for attempting to bribe a federal judge announced United States Attorney Robert Pitman, Federal Bureau of Investigation Special Agent in Charge Christopher Combs and Internal Revenue Service-Criminal Investigation Special Agent in Charge Steve McCollough.
On March 12, 2004, the defendants, along with Francisco’s father, 53-year-old Veracruz, Mexico businessman Francisco Antonio Colorado Cessa (aka “Pancho”), pleaded guilty to one count of conspiracy to bribe a federal judge. All three admitted to conspiring last year to pay a $1.2 million bribe to a federal judge in order to secure a reduced sentence for Colorado-Cessa in a related court case. According to court records, at no time before or during this investigation was the judge involved in the alleged criminal activity.
Colorado Cebado and Segura Flores have remained in federal custody since their arrest on September 5, 2013. Both face deportation proceedings upon completion of their respective sentences.
Sentencing for Colorado Cessa, who faces up to five years in federal prison on the attempted bribery charge, is scheduled for October 20, 2014. Colorado Cessa is currently serving a 20-year federal prison term for his role in a complex scheme to launder millions of dollars in illicit Los Zetas drug trafficking proceeds to purchase, train, breed, and race American quarter horses in the United States.
This case was investigated by the FBI and IRS-Criminal Investigation.
Temple Couple Enters Guilty Pleas in Connection with A Postal Theft Scheme Involving in Excess of 50,000 Pieces of United States MailRead the Press Release
More than 2,000 individuals victimized as a result of the defendants' scheme
In Waco, two individuals await sentencing after pleading guilty to federal charges in connection with a postal theft scheme involving more than 50,000 pieces of mail and over $500,000 in other U.S. Government property from U.S. Post Offices in approximately 80 cities and towns across Texas announced U.S. Attorney Robert Pitman and U.S. Postal Inspection Service (USPIS) Inspector in Charge Robert Weymss, Houston Division.
Appearing this afternoon before United States District Judge Walter S. Smith, Jr., 39-year-old Charles Hattenbach of Temple, TX, pleaded guilty to one count of conspiracy to steal mail, one count of bank fraud, one count of theft of Government property and three counts of aggravated identity theft. Last month, Hattenbach’s co-defendant, 28-year-old Kathryn Hubbert of Temple, TX, pleaded guilty to one count of conspiracy to steal mail, one count of bank fraud, one count of theft of Government property and two counts of aggravated identity theft.
According to court records, from December 2013 until March 2014, the defendants conspired to steal U.S. mail and other Government property by breaking into U.S. Post Offices and blue mail receptacle boxes located outside of post offices in an area stretching from Midland to College Station and from Dallas to San Antonio. The defendants stole credit cards, personal checks, business checks, money orders, postage, W-2s, tax returns, items which contained personal identifying information, cash, gift cards and other items belonging to more than 2,000 victims.
The defendants also devised a scheme to defraud several financial institutions, including Extraco Bank in Round Rock, TX, by endorsing and depositing stolen money orders and checks. The defendants subsequently withdrew the deposits causing the financial institutions to lose more than $80,000. The defendants also activated numerous credit cards using victims’ personal identifying information, including names, social security numbers and driver’s license numbers and dates of birth, which they had previously stolen from the mail.
“We take very seriously the integrity of the U.S. mail and will continue to work with the Postal Inspection Service and our law enforcement partners to apprehend and prosecute people who, like the defendants in this case, target the mail to facilitate their criminal enterprises,” stated United States Attorney Robert Pitman.
The defendants targeted United States Post Offices, collection boxes, parcel lockers and post office boxes in the following cities and towns: Alvarado, Austin (Balcones, Bluebonnet, Main, McNeil, Mockingbird, Northcross, South Campus, Southeast, and Town North branches), Bangs, Belton, Blanket, Brenham, Bryan, Buchanan Dam, Buckholts, Burton, Cameron, Campbellton, Carmine, Cedar Park, Chapel Hill, Clifton, Coleman, College Station, Colorado City, Copperas Cove, Corpus Christi (Gulfway branch), Dripping Springs, Early, Elgin, Florence, Gause, Georgetown, Gustine, Harker Heights, Hearne, Heidenheimer, Hewitt, Hillsboro, Holland, Hutto, Jerrell, Jonesboro, Kemper, Killeen, Lampasas, Lawn, Leander, Ledbetter, Liberty Hill, Lockhart, Loraine, Lorena, May, McDade, Meridian, Merkel, Midland, Milano, Millican, Mound, Navasota, Nolanville, Novice, Paige, Pendleton, Pflugerville, Red Oak, Rising Star, Roby, Rockport, Rogers, Rosebud, Round Rock, Salado, San Angelo, San Marcos, Santa Anna, Sinton, Sterling City, Sweetwater, Taylor, Temple, Thorndale, Treat, Troy, Tye, Valley Mills, Waco (Highlander and Woodway branches), Walnut Springs, Washington and Weir.
Hattenbach, who remains in federal custody, is scheduled to be sentenced at 1:00pm on September 10, 2014, before Judge Smith. Sentencing for Hubbert, who is currently on bond, is scheduled for 1:00pm on August 20, 2014, before Judge Smith. Hattenbach and Hubbert face up to five years in federal prison for conspiracy to steal U.S. Mail; up to 30 years in federal prison for bank fraud; up to ten years in federal prison for theft of Government property; and, consecutive two-year federal prison terms for each aggravated identity theft charge. A restitution amount, consisting of stolen funds, proceeds derived from the scheme, losses incurred by victims and property damage among other things, will be determined at sentencing.
“The Postal Inspection Service has sought those who steal mail for hundreds of years. The ability to use the mail in a safe and secure manner is at the core of the Postal Inspection Service's mission,” stated USPIS Inspector in Charge Robert Weymss.
This case resulted from an investigation conducted by USPIS and the Bell County Organized Crime Task Force (BCOTF). The BCOTF is comprised of investigators from the United States Marshals Service, Bell County Sheriff’s Office and police departments from Temple, Belton, Killeen, Copperas Cove and Harker Heights. Assistant United States Attorney Greg Gloff is prosecuting this case on behalf of the Government.
El Paso Man Sentenced to Federal Prison for Production of Child PornographyRead the Press Release
In El Paso today, 48-year-old Tomas Steven Quinones was sentenced to 225 months in federal prison followed by ten years of supervised release for production of child pornography announced United States Attorney Robert Pitman and Homeland Security Investigations (HSI) Special Agent in Charge Dennis Ulrich.
On August 29, 2013, HSI agents executed a search warrant at the defendant’s residence and seized over 90 assorted computers, accessories and other miscellaneous items including laptop computers, desktop computers, computer hard drives, thumb drives, memory sticks, flash drives, CDs, DVDs and VHS tapes. A subsequent forensics examination of the seized items revealed the presence of approximately 25,000 images of child pornography.
On May 7, 2014, Quinones pleaded guilty to production of child pornography. By pleading guilty, Quinones admitted to producing a video in December 2010 in which he knowingly persuaded and enticed two minors to take part in sexually explicit conduct for the purpose of producing a video depiction of such conduct. Quinones is seen and heard throughout the video instructing the children on how to have sex.
“This 18-year sentence sends a clear message that those who exploit children in any way will face serious consequences,” said Special Agent in Charge, Dennis Ulrich, HSI El Paso. “Preventing and investigating crimes against children is a high priority for HSI. We will continue to dedicate law enforcement resources to identify and bring to justice child predators who traumatize and victimize children.”
Assistant United States Attorney Rifian Newaz prosecuted this case on behalf of the Government.
San Antonio Gang Member Sentenced to 40 Years in Federal Prison for Drug and Firearms ViolationsRead the Press Release
In San Antonio today, 25-year-old Arnoldo Lopez (a.k.a. “Looney”), a member of the Duffle Bag Mafia in San Antonio, was sentenced to 40 years in federal prison for various drug and firearms offenses announced United States Attorney Robert Pitman, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Robert Elder, Houston Division and Homeland Security Investigations (HSI) Special Agent in Charge Janice Ayala, San Antonio Division.
United States District Judge Xavier Rodriguez sentenced Lopez to 35 years in prison for conspiracy to possess with intent to distribute “crack” cocaine plus five additional years imprisonment for possession of a firearm during a drug trafficking crime. In a separate, but related case, Judge Rodriguez sentenced Lopez to five years in prison on six separate charges of making a false statement during the purchase of a firearm. Judge Rodriguez ordered the prison terms assessed for each of the false statement charges to run concurrent with the drug and firearm prison terms.
On September 5, 2013, Lopez pleaded guilty to the above-mentioned charges. According to court records, on October 4, 2012, Lopez and others were apprehended by the San Antonio Police Department Gang Unit while in possession of distributable quantities of “crack” cocaine as well as four firearms including one assault rifle, two shotguns and a semi-automatic pistol. Prior to his arrest, HSI agents were investigating a firearms straw purchasing operation wherein Lopez directed other individuals to purchase dozens of firearms under false pretenses. The weapons purchased included AK-47 and AR-15 type assault rifles which were destined for the Los Zetas Cartel.
SAC Elder stated: “This investigation is an outstanding example of where cooperative efforts of ATF, HSI, and the San Antonio Police Department can lead. Anytime we get a criminal of this magnitude off the streets is a good day for our citizens.”
SAC Ayala stated: “Today's sentencing of Arnoldo Lopez sends a clear message that those who engage in
and/or facilitate the straw purchasing and smuggling of weaponry, and related items, will face serious
consequences. HSI, ATF, and our law enforcement partners are dedicated to making communities safer by bringing violent criminals to justice and preventing or seizing firearms before they fall into the hands of
transnational criminal organizations who pose a threat to public safety both here and abroad.”
On February 26, 2014, Lopez’ co-defendant, 31-year-old Michael Gutierrez, was sentenced to 248 months in federal prison for his role in the drug distribution scheme. Two other co-defendants in the drug distribution scheme are awaiting sentencing. Six co-defendants in the firearms straw purchasing scheme have been sentenced to terms ranging from three years probation to 57 months in federal prison.
These charges resulted from investigations conducted by the Bureau of Alcohol, Tobacco, Firearms and
Explosives, Homeland Security Investigations and the San Antonio Police Department. Assistant United States Attorneys Russell Leachman and Bettina Richardson prosecuted these cases on behalf of the Government.Austin Man Pleads Guilty in Laser Strike IncidentRead the Press Release
In Austin today, 25–year-old Gabriel Soza Ruedas, Jr., pled guilty to pointing a laser at an aircraft flying overhead announced United States Attorney Robert Pitman and FBI Special Agent in Charge Christopher Combs, San Antonio Division. Ruedas faces up to five years in federal prison and a maximum $250,000 fine for the offense.
Appearing before United States Magistrate Judge Andrew W. Austin, Ruedas admitted that on February 15, 2014, he knowingly aimed the beam of a laser pointer at an Austin Police Department helicopter (Air1) that was on approach to land at Austin Bergstrom International Airport (ABIA). All of this occurred after Air1 had been cleared by air traffic control to land. Air1 delayed its landing to investigate the source of the laser. Austin Air Traffic Control issued a general warning to all pilots in the area where the laser incident occurred, which was the flight path of arriving aircraft on short final approach to ABIA.
The laser Ruedas used was strong enough to reflect inside the cockpit of Air1 causing the pilot to turn his head and avert his eyes from the laser, distracting him from normal flight operations.
The crew of Air1 communicated to ground units from the Austin Police Department (APD) information about the source of the laser strikes, enabling APD units to identify and apprehend Ruedas. Ruedas was found with the laser pointer in his sweatshirt pocket.
Ruedas remains in custody pending sentencing before United States District Judge Lee Yeakel.
This case resulted from an investigation conducted by agents with the Federal Bureau of Investigation together with the Austin Police Department and the Texas Attorney General’s Office. Assistant United States Attorney Gregg Sofer 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.
Terlingua Woman Pleads Guilty to Stealing Social Security Benefits Issued to Her Dead FatherRead the Press Release
In Pecos this morning, 49-year-old JUDITH MARIA BROUGHTON, a Terlingua Ranch resident, pleaded guilty to stealing Social Security benefits payable to her dead father, Luther D. Broughton, announced Robert Pitman, United States Attorney for the Western District of Texas, and Robert Feldt, Special Agent in Charge, Social Security Administration - Office of Inspector General (SSA-OIG) in Dallas. She faces up to 10 years in federal prison for the offense.
Appearing before United States Magistrate Judge B. Dwight Goains, Broughton admitted that between June 1990 and August 2011, she stole Social Security Retirement Insurance benefits made payable to her father in the amount of $245,226.00.
During the plea hearing Broughton acknowledged that on or about June 5, 1990, her father died and after his death, she leased a storage unit in his name at Econo Self Storage in Lexington, Kentucky. Broughton continued to make monthly payments on the storage unit in her father’s name from June 1990 through March 2014. When officers searched the storage unit on January 8, 2014, the mummified remains of Luther D. Broughton were discovered.
Broughton also acknowledged she obtained a joint checking account in her father’s name and had his Social Security benefits electronically deposited into the account. When SSA-OIG sought written verification that Broughton’s father was still living, she responded with false statements that he was still alive. Broughton admitted that by taking the monthly Social Security payments intended for her father from July 1990 until August 2011, she stole money totaling $245,226.00 from the United States and converted those funds to her own use.
Prior to Defendant Broughton’s arrest, she had been residing with her mother, Mary Elizabeth Broughton, in Brewster County, Texas. Mary Elizabeth Broughton also was a beneficiary of Social Security payments and those benefits were deposited in a joint account with the Defendant through the Fort Davis State Bank. After Defendant’s arrest, a safety check for Mary Elizabeth Broughton was conducted and her whereabouts could not be determined at that time. Mary Elizabeth Broughton remains missing.
Defendant remains in custody pending sentencing before United States District Judge Robert Junell in Pecos. No sentencing date has been scheduled.
This case resulted from an investigation by the Social Security Administration – Office of the Inspector General in El Paso and Lexington, Kentucky, with the assistance of the U. S. Marshal Service, the Brewster County Sheriff’s Office, and the Lexington, Kentucky Police Department.
Assistant United States Attorney James J. Miller, Jr., 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.
Round Rock Man Pleads Guilty to Attempting to Provide Material Support to TerroristsRead the Press Release
In Austin this morning, 23-year-old Rahatul Ashikim Khan (a.k.a. “Rahat Khan,” “Authentic Tauheed 19,” and “AT19”) pleaded guilty to attempting to provide material support and resources to terrorists, announced Robert Pitman, United States Attorney for the Western District of Texas, Christopher Combs, Federal Bureau of Investigation Special Agent in Charge of the San Antonio Division, and John Carlin, Assistant Attorney General for National Security. He faces up to 15 years in federal prison for the offense.
Appearing before United States Magistrate Judge Mark Lane, Khan admitted that from March 2011 to January 2012, he conspired to provide material support to terrorists.
During the plea hearing Khan acknowledged that he intended to provide to a co-conspirator a confidential
human source (CHS), whom Khan believed to be a person interested in participating in violent jihad overseas. The co-conspirator told Khan about a contact who could facilitate travel to Somalia, where persons would then engage in violent jihad. The co-conspirator asked Khan to identify individuals who would be good candidates to travel to Somalia to participate in violent jihad. Khan identified the CHS as a worthy candidate for violent jihad in Somalia and communicated this information and the CHS’s identity to the co-conspirator. The coconspirator subsequently contacted the CHS and further assessed the CHS’s suitability to fight overseas. The co-conspirator informed the CHS that he trusted the CHS because of Khan’s recommendation. After determining that the CHS was a good candidate for fighting in Somalia, the co-conspirator passed the CHS to a contact in Africa who then communicated with the CHS about the logistics of traveling to Africa in support of violent jihad.
“Rahatul Khan’s admissions during this morning’s guilty plea should serve as a sobering reminder that we need to remain vigilant in our efforts to detect and root out terrorism, even in our own back yard,” stated United States Attorney Robert Pitman. “Great credit is due to the dedicated law enforcement professionals whose tireless efforts contributed to the apprehension of Khan and Michael Wolfe, who pled last week in a separate case to similar charges. National security is, and will remain, the first priority of this office and our law enforcement partners.”
Khan remains in federal custody pending sentencing before United States District Judge Sam Sparks in Austin. No sentencing date has been scheduled.
This case resulted from a Central Texas Joint Terrorism Task Force investigation conducted by the Federal Bureau of Investigation together with the Internal Revenue Service-Criminal Investigations, United States Citizenship and Immigration Services, United States Army Intelligence, Austin Police Department, Round Rock Police Department, Killeen Police Department, University of Texas Police Department, Travis County Sheriff’s Office, Texas Department of Public Safety, Office of the Texas Attorney General and the Texas Alcoholic Beverage Commission.
Assistant United States Attorneys Gregg N. Sofer and Michael Galdo, together with Department of Justice
National Security Division trial attorneys Josh Parecki and Michael Dittoe, 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.
Federal Grand Jury in Del Rio Indicts Midland Man on Attempted Murder Charges of Border Patrol AgentsRead the Press Release
In Del Rio today, a federal grand jury indicted CARL WAYNE WILEY for attempted murder of a federal
agent, announced United States Attorney Robert Pitman, 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.
The four-count indictment alleges that on June 30, 2014, 48-year-old Carl Wayne Wiley of Midland, TX,
attempted to kill one or more United States Border Patrol Agents who were engaged in the performance of their official duties. The indictment further charges that the defendant, using a .45 caliber Ruger revolver, forcibly assaulted and interfered with one or more United States Border Patrol Agents. Defendant also was charged with two counts of carrying and discharging a firearm during the commission of a crime of violence.
Upon conviction, the defendant faces up to 20 years imprisonment each for the attempted murder charge and the assault charge. He faces up to 10 years for the use of a firearm during the commission of a crime of violence. The defendant remains in state custody pending an initial appearance before a United States Magistrate Judge in Del Rio.
Assistant United States Attorneys Chris Blanton and Ralph Paradiso 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.
Austinite Pleads Guilty to Attempting to Provide Material Support to TerroristsRead the Press Release
In Austin this morning, 23-year-old Michael Wolfe (a.k.a. “Faruq”) pleaded guilty to attempting to provide material support and resources to a foreign terrorist organization, announced Robert Pitman, United States Attorney for the Western District of Texas, Christopher Combs, Federal Bureau of Investigation Special Agent in Charge of the San Antonio Division, and John Carlin, Assistant Attorney General for National Security. He faces up to 15 years in federal prison for the offense.
Appearing before United States Magistrate Judge Mark Lane, Wolfe admitted that from August 2013 to June 17, 2014, he planned to travel to the Middle East to provide his services to a foreign terrorist organization, namely, the Islamic State of Iraq and al-Sham/Syria (ISIS) and to engage in violent jihad in Syria.
During the plea hearing Wolfe acknowledged that he applied for and acquired a United States passport, participated in physical fitness training, practiced military maneuvers and made efforts to conceal his communications about his plans to travel overseas to engage in violent jihad. Wolfe also purchased airline tickets so that he could travel to Europe to meet an FBI undercover employee, whom the defendant then believed would facilitate travel to Syria through Turkey. In furtherance of his attempt to provide material support to ISIS, Wolfe travelled to Houston and was apprehended on June 17, 2014, on the jet-way, as he attempted to board flight #8112 to Toronto, Canada. His ticketed itinerary had him traveling through Iceland and arriving in Copenhagen, Denmark on June 18, 2014. He then planned to make his way to Syria to join with ISIS and engage in the armed conflict.
Wolfe remains in federal custody pending sentencing before United States District Judge Sam Sparks in Austin. No sentencing date has been scheduled.
This case resulted from a Central Texas Joint Terrorism Task Force investigation conducted by the Federal Bureau of Investigation together with the Internal Revenue Service-Criminal Investigation, United States Citizenship and Immigration Services, United States Army Intelligence, Austin Police Department, Round Rock Police Department, Killeen Police Department, University of Texas Police Department, Travis County Sheriff's Office, Texas Department of Public Safety, Office of the Texas Attorney General and the Texas Alcoholic Beverage Commission.
Assistant United States Attorneys Gregg N. Sofer and Michael Galdo, together with Department of Justice National Security Division trial attorneys Josh Parecki and Michael Dittoe, are prosecuting this case on behalf of the Government.Asherton Man Sentenced to 20 Years in Federal Prison for Receiving Child PornRead the Press Release
In Del Rio this afternoon, 60-year-old Abel De Leon of Asherton, TX, was sentenced to 20 years in federal prison followed by five years of supervised release for receiving child pornography announced United States Attorney Robert Pitman and Homeland Security Investigations (HSI) Special Agent in Charge Janice Ayala.
Court records reflect that HSI agents who were conducting an investigation into on-line exploitation of minors executed a search warrant at the defendant’s residence in November 2012 and seized several DVDs, a computer and related equipment. A subsequent forensics examination of the seized items revealed the presence of over 100 videos and images depicting sexual exploitation of pre-pubescent children.
On June 5, 2013, De Leon pleaded guilty to one count of receipt of child pornography. By pleading guilty, De Leon admitted to receiving child pornography since approximately 2012, including 48 videos via the Internet.
“This 20-year sentence sends a clear message that those who exploit children in any way will face serious consequences,” said Special Agent in Charge Janice Ayala, HSI San Antonio. “Preventing and investigating crimes against children is a high priority for HSI. We will continue to dedicate law enforcement resources to identify and bring to justice child predators who traumatize and victimize children.”
This case was investigated by special agents with HSI and prosecuted by Assistant United States Attorneys Matthew H. Watters, Katherine Nielsen, and Meghan McCalla.