Western District of Texas
Press releases recorded for this federal judicial district.
Former Reserve Airman Pleads Guilty to Theft of Government Property and Burglarizing A Del Rio PharmacyRead the Press Release
In Del Rio today, 20-year-old Simon Robert Barron, a former reserve U.S. Airman temporarily assigned to Laughlin Air Force Base, pleaded guilty federal charges of stealing Government property and burglary of a pharmacy announced United States Attorney Robert Pitman.
According to court records, on May 20, 2013, Barron attempted to purchase cough syrup at the LifeChek Pharmacy located on North Bedell Avenue, but was turned away for not having a prescription. That evening, Barron returned to the pharmacy where he used a rock to smash a window, entered the pharmacy, and then stole an assortment of narcotics with a retail value of more than $63,000. Two days later, while at Laughlin AFB, Barron was ordered to undergo a medical evaluation after he appeared intoxicated. A urinalysis revealed the presence of marijuana, Xanax, cocaine, codeine, and several opiates in his system. During a subsequent search authorization, issued by a military magistrate and executed at the Barron’s barracks room, Air Force OSI investigators discovered over 6,300 pills and liquid narcotics stolen from the LifeChek pharmacy along with stolen Government property including seven GPS units, two digital cameras, a power drill, an LED flashlight and a Motorola Radio Base Station. Authorities also recovered an Air Force air compressor from Barron’s vehicle and a Government chainsaw Barron pawned at a local pawn shop on the day of the pharmacy burglary. The value of the stolen Government property is estimated to be more than $5,500.
Barron faces up to twenty years in federal prison on the pharmacy burglary charge and up to ten years in federal prison on the theft of Government property charge. He remains on bond pending sentencing which has yet to be scheduled.
This investigation was conducted by agents with the Air Force Office of Special Investigations together with the Del Rio Police Department. Assistant United States Attorney Patrick Burke is prosecuting this case on behalf of the Government.Eagle Pass Businessman Pleads Guilty to Role in Maverick County Bribery, Kickback and Bid-Rigging SchemeRead the Press Release
In Del Rio today, 64-year-old Saul Lombrana, owner and operator of Fiesta Contractors based in Eagle Pass, admitted to paying a bribe in order to receive a Maverick County construction contract announced United States Attorney Robert Pitman and Acting FBI Special Agent in Charge Aaron C. Rouse, San Antonio Division.
Appearing before United States District Judge Alia Moses this afternoon, Lombrana pleaded guilty to one count of paying a bribe to an agent of an organization receiving federal funds. By pleading guilty, Lombrana admitted that in March 2011, he submitted a $14,500 bid to construct 155 linear feet of concrete drain swell on Rafael Street in Precinct 1. After being awarded the contract, Lombrana never constructed the concrete drain swell, but requested and received full payment for the project. Of the $14,500 he received, Lombrana admittedly only kept $5,000 while giving the rest to a Maverick County employee as a bribe.
Lombrana faces up to ten years in federal prison, a maximum $250,000 fine and restitution to be determined by the Court. He remains on bond pending sentencing which has yet to be scheduled.
This ongoing 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 Attorneys Michael Galdo and Bryan Reeves are prosecuting this case on behalf of the Government.
Indictment Unsealed Which Charges Former Secretary of Finance for the Mexican State of Coahuila in Money Laundering ConspiracyRead the Press Release
A federal grand jury indictment unsealed this morning in San Antonio charges Hector Javier Villarreal Hernandez, the former Secretary of Finance for the Mexican State of Coahuila, Mexico, for his alleged role in a money laundering conspiracy announced United States Attorney Robert Pitman; Drug Enforcement Administration Acting Special Agent in Charge Steven Whipple, Houston Division; Internal Revenue Service-Criminal Investigation Special Agent in Charge Steve McCollough and Homeland Security Investigations Special Agent in Charge Janice Ayala.
The indictment alleges that since January 2008, Villarreal and others conducted financial transactions involving the proceeds of unlawful activity. According to the indictment, the proceeds in question involve the importation, sale and distribution of controlled substances; bribery of a public official; embezzlement of public funds; and, wire fraud. The indictment further alleges that as part of the scheme, the defendant transferred funds in and out of the United States in order to conceal and disguise the nature, source and ownership of the criminally derived proceeds.
Upon conviction, the defendant faces up to 20 years in federal prison.
Villarreal surrendered to federal authorities in El Paso yesterday. He remains in federal custody following his Initial Appearance this afternoon in San Antonio before United States Magistrate Judge Henry Bemporad. No further court dates are scheduled at this time.
This indictment resulted from an investigation conducted by agents with the Drug Enforcement Administration (DEA) together with Internal Revenue Service-Criminal Investigation (IRS-CI), Homeland Security Investigations (HSI) and the DEA’s High Intensity Drug Trafficking Area (HIDTA) Task Force in San Antonio.
The United States Government is grateful for the ongoing cooperation of the Government of Mexico with regard to this investigation.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
Former Cameron County District Attorney Armando Villalobos Sentenced to Federal Prison in Connection with South Texas Bribery SchemeRead the Press Release
In Brownsville today, former Cameron County District Attorney Armando R. Villalobos was sentenced to 13 years in federal prison for his role in a South Texas bribery and extortion scheme announced United States Attorney Robert Pitman.
In addition to the prison term, U.S. District Judge Andrew Hanen ordered that Villalobos pay $339,000 in restitution, pay a $30,000 fine, and be placed under supervised release for a period of three years after completing his prison term. Judge Hanen also ordered that Villalobos be remanded to the custody of the U.S. Marshals Service following today’s sentencing hearing.
“The most important component of an effective justice system is the public’s ability to trust those who are responsible for enforcing the law. But even when there is a breach of that trust, as in this case, the public should take some comfort in knowing that there is a mechanism for detecting, rooting out and punishing those who would corrupt the process,” stated United States Attorney Robert Pitman.
In May 2013, a federal jury convicted Villalobos of one count of violating the Racketeer Influenced and Corrupt Organizations (RICO) Act, one count of conspiracy to violate the RICO Act and five counts of extortion. Jurors acquitted Villalobos of two counts of extortion. This afternoon, Judge Hanen granted the defendant’s motion for acquittal on an extortion count (count 3) before sentencing Villalobos to 156 months incarceration on each of the six remaining charges all to run concurrent.
Evidence presented at trial revealed that from October 2, 2006, through May 3, 2012, Villalobos and others were involved in a scheme to illegally generate income for themselves and others through a pattern of bribery and extortion, favoritism, improper influence, personal self-enrichment, self-dealing, concealment and conflict of interest. Jurors found that Villalobos solicited and accepted over $100,000 in bribes and kickbacks in the form of cash and campaign contributions in return for favorable acts of prosecutorial discretion, including minimizing charging decisions, pretrial diversion agreements, agreements on probationary matters and case dismissals. Furthermore, Villalobos solicited and arranged for private counsel to handle civil and forfeiture matters associated with criminal matters pending in the Office of the District and County Attorney of Cameron County.
This investigation was conducted by the Federal Bureau of Investigation, Drug Enforcement Administration, Internal Revenue Service-Criminal Investigation and the Brownsville Police Department. Former Southern District of Texas Assistant United States Attorney Michael Wynne and current Western District of Texas Assistant United States Attorney Greg Surovic prosecuted this case on behalf of the Government.
Two New Braunfels Ammo Smugglers Found Guilty of Federal ChargesRead the Press Release
In Del Rio on Friday evening, a federal jury found 23-year-old Jesus Cardenas of New Braunfels, TX, and 34-year-old Luis Cardenas guilty on multiple counts of smuggling ammunition from the United States announced U.S. Attorney Robert Pitman and Homeland Security Investigations Special Agent in Charge Janice Ayala.
The federal jury convicted the brothers 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 an individual 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.
Both remain in custody pending sentencing. Each charge of conviction calls for a maximum of ten years in federal prison and a maximum $250,000 fine. Sentencing for the case is presently set for August 14, 2014, before U.S. District Judge Alia Moses in Del Rio.
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 are prosecuting this case for the Government.
Tax Defier, Former NFL Player Sentenced to Federal Prison for Filing Fraudulent Income Tax ReturnsRead the Press Release
This morning in Austin, Gregory P. Boyd was sentenced to 33 months in federal prison and ordered to pay $185,129.07 restitution to the Internal Revenue Service for filing income tax returns that did not accurately reflect his income announced United States Attorney Robert Pitman and Internal Revenue Service-Criminal Investigation Special Agent In Charge Steve McCullough.
In November 2013, jurors convicted Boyd of three counts of filing fraudulent income tax returns. Evidence and testimony presented during trial revealed that Boyd knowingly filed false income tax returns for 2004, 2005 and 2006. On each tax return, Boyd declared that he received zero income when in fact, he received roughly $180,000 in 2004, about $390,000 in 2005, and approximately $225,000 in 2006. The parties stipulated that Boyd owed income tax in the amount of $26,688 for 2004, at least $102,237 for 2005, and $49,155 for 2006.
Evidence at trial revealed that Boyd had not paid income taxes on any of the years 2004 through 2011. Boyd, who played football at the University of Arizona and then played in the NFL during the 1973 and 1974 seasons, worked in the field of real estate development during 2004, 2005 and 2006.
Boyd testified during the trial that he believed his tax returns were true and complied with the law, based on ideas he learned from the book “Cracking the Code” by Peter Eric Hendrickson. Hendrickson appeared at trial and testified as a witness for the defense. Boyd specifically testified that he believed, based on Hendrickson’s book, that the income tax applies only to the income of federal government employees and federal government contractors, as well as income derived from investments in federal government securities.
“Tax crimes cheat not only the government, but also every honest citizen who follows the rules and meets his or her obligations. We owe it to these citizens to bring justice to those who willfully break the tax laws,” stated U.S. Attorney Robert Pitman.
“Today’s sentence serves as a reminder during this income tax filing season that everyone has a duty to pay their fair share of taxes and those who don’t will be held accountable,” stated Internal Revenue Service-Criminal Investigation Special Agent In Charge Steve McCullough.
This investigation was conducted by the Internal Revenue Service-Criminal Investigation. The case was prosecuted by Assistant United States Attorney Alan Buie.
Former Jarrell Police Chief Pleads Guilty to Federal Bribery ChargeRead the Press Release
Former Jarrell (TX) Police Chief Andres Tomas Gutierrez, age 51, faces up to 20 years in federal prison after pleading guilty this morning to a wire fraud/theft of honest services charge announced United States Attorney Robert Pitman; Homeland Security Investigations (HSI) Special Agent In Charge Janice Ayala in San Antonio; Department of Homeland Security Office of Inspector General–Investigations Special Agent In Charge J. Kirk Beauchamp in Houston; and Federal Bureau of Investigation Acting Special Agent In Charge John Boles, San Antonio Division.
Appearing before United States Magistrate Judge Mark Lane in Austin this morning, Gutierrez admitted that from the Fall of 2011 to November 2013, he devised a scheme to defraud and deprive the citizens of Jarrell of their right to his honest services through bribery and concealment of information.
“Gutierrez solicited and accepted cash bribes—between $10,000 and $40,000—from several undocumented aliens in return for requesting and obtaining for the aliens limited immigration benefits that the U.S. government intended and designed for law enforcement purposes,” stated U.S. Attorney Robert Pitman. “Gutierrez falsely represented to the U.S. government that the undocumented aliens were assisting the Jarrell Police Department with ongoing investigations into narcotics trafficking and human trafficking,” Pitman added.
According to court records, individuals unconnected to the City of Jarrell and its Police Department introduced Gutierrez to undocumented aliens who had money to pay for immigration benefits. Gutierrez or the individuals who made the introductions, or both, then met with the aliens and explained the benefits they could receive if they paid certain amounts of money. They lied to the aliens, telling them that the Jarrell Police Department would receive the money and use it to pay for law enforcement operations. They also told the aliens that they would provide information or assistance to the Jarrell Police Department, for use in criminal investigations, in return for the immigration benefits. That was also a lie. Gutierrez never asked the aliens to provide assistance or information in connection with criminal investigations. What Gutierrez asked for and received from the aliens was money.
Furthermore, with the help of the individuals who introduced him to the aliens, Gutierrez simply sold the aliens the benefits. After an alien paid his or her money, Gutierrez would submit to the U.S. government an application for the alien to receive what is known as a Significant Public Benefit Parole, which is a type of immigration status that federal immigration laws make available to aliens who actually assist federal, state and local law enforcement agencies. The Paroles authorize an alien to reside and work in the United States for up to a year, and they can be renewed. The applications that Gutierrez submitted said the aliens were providing assistance with ongoing criminal investigations by the Jarrell Police Department, which was false. Also, the Defendant never disclosed to the United States government that he was selling the Paroles.
“Today’s guilty plea serves as a stern and sobering reminder that no one is above the law especially those who hold a position of public trust,” said Special Agent in Charge Janice Ayala, HSI San Antonio. “HSI will continue to work with its law enforcement partners to root out public corruption wherever it exists.”
“Acts of corruption within law enforcement threaten our nation’s system of justice and undermine the honest and hardworking law enforcement personnel who consistently strive to keep that system the best in the world. The Department of Homeland Security will not tolerate corruption, and we will aggressively pursue those who choose to break the law,” stated DHS OIG SAC J. Kirk Beauchamp,
“Gutierrez abused his authority and repeatedly broke the law he was sworn to uphold. He tarnished the badge he wore and violated the trust of the people of Jarrell. This case demonstrates the FBI's commitment to enforce the law and hold individuals accountable, regardless of rank, position, or status,” stated FBI Acting Special Agent In Charge John Boles.
Gutierrez is out on bond pending sentencing. No sentencing date has been scheduled.
This investigation was conducted by agents with Homeland Security Investigations, Department of Homeland Security Office of Inspector General--Investigations and the Federal Bureau of Investigation. Assistant United States Attorneys Alan M. Buie and Gregg N. Sofer are prosecuting this case on behalf of the Government.
The government’s investigation into the bribery scheme is ongoing. Anyone who has pertinent information should call one of the following: the FBI at (512) 506-2136; HSI at (512) 801-1862; or, the DHS Office of Inspector General at (713) 212-4305.
Federal Grand Jury in El Paso Charges Former Army Physician, Former El Paso Physician, Two Other Individuals and Two Businesses in Connection with an Estimated $7.3 Million Health Care Fraud SchemeRead the Press Release
In El Paso, a federal grand jury has returned a 65-count indictment charging four individuals and two companies in connection with an estimated $7.3 million Health Care related fraud scheme announced United States Attorney Robert Pitman; Janice M. Flores, Special Agent in Charge of the Defense Criminal Investigative Service’s Southwest Field Office, Arlington, TX; Special Agent in Charge Scott Wilk of the Southwest Fraud Field Office of the U.S. Army Criminal Investigation Command Major Procurement Fraud Unit, Arlington, TX; and FBI Special Agent in Charge Douglas E. Lindquist, El Paso Division.
Charged in the indictment, which was returned yesterday afternoon, include: 44-year-old former William Beaumont Army Medical Center (WBAMC) physician Richard Craig Rooney of Medina, WA; his 46-year-old wife and former El Paso Otolaryngology (Ear, Nose and Throat) physician and cosmetic surgeon Angie Unchi Song; 44 year-old Julia Lynn Eller, President and Chief Executive Officer of Allure Spine, LLC (Allure) in Charlotte, North Carolina; 71-year-old Charlie Takhyun Song of Grapeview, WA, father of Angie Unchi Song and independent sales representative; Spondylos Consulting, LLC (Spondylos), a company owned by Angie Unchi Song; and, Allure Spine, LLC, a company owned by Julia Eller.
Rooney, Angie Song, Eller, Charlie Song, Spondylos and Allure are all charged with one count of conspiracy to commit illegal remuneration in regard to Federal Health Care programs; two counts of aiding and abetting illegal remuneration in regard to Federal Health Care programs; one count of conspiracy to commit wire fraud and one count of conspiracy to commit money laundering. Rooney, Angie Song, Eller and the two companies are charged in 39 substantive counts of wire fraud. Also, Rooney, Eller and Allure are charged with 17 substantive money laundering counts; and Angie Song, Charlie Song and Spondylos, with one substantive money laundering count. In addition, the indictment also charges Rooney and Eller with two counts each of making material false statements to federal authorities.
The indictment alleges that between September 2002 and August 2010, the defendants participated in an illegal scheme whereby Eller funneled money and other things of value, including firearms, to Rooney, Angie Song and Charlie Song so that Rooney would request the use of Allure Spine surgical implant devices and other medical related equipment in surgeries he performed at WBAMC and at Darnall Army Medical Center at Ft. Hood, TX (DAMC).
The indictment also includes a notice of criminal forfeiture wherein the Government is seeking proceeds derived from the fraudulent scheme as well as funds totaling more than $4.25 million seized from financial institutions and two residential real estate properties located in the State of Washington.
“Today’s indictment demonstrates that the FBI and our partners at the U.S. Attorney’s Office; U.S. Department of Defense, Criminal Investigative Service; U.S. Army Criminal Investigative Command, Major Procurement Fraud Unit; and, the U.S. Postal Inspector Service are committed to thoroughly investigate Health Care Fraud in our community, including Ft. Bliss, whenever health care professionals engage in activity to defraud our health care system for the sole purpose of self-enrichment,” stated FBI Special Agent in Charge Douglas E. Lindquist.
Upon conviction: conspiracy to commit illegal remuneration carries a penalty of up to five years in federal prison; aiding and abetting illegal remuneration in regard to Federal Health Care Programs carries a penalty of up to five years in federal prison; conspiracy to commit money laundering and money laundering carry a penalty of up to 20 years in federal prison; conspiracy to commit wire fraud and wire fraud carry penalties up to 20 years in federal prison; and false statement to federal authorities carries a penalty of up to five years in federal prison.
This indictment resulted from an investigation conducted by agents with the Defense Criminal Investigative Service (DCIS); agents of the Criminal Investigation Command Major Procurement Fraud Unit of the U.S. Army Criminal Investigation Command; and agents of the Federal Bureau of Investigation (FBI). Assistant United States Attorneys Debra Kanof and Anna Arreola 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.
El Paso Man Sentenced to Federal Prison for Possession and Distribution of Child PornographyRead the Press Release
El Paso resident Gustavo Cervantes-Perez, age 26, will serve ten 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 Dennis A. Ulrich, El Paso.
In addition to the prison term handed down today, U.S. District Judge Kathleen Cardone ordered that Cervantes-Perez pay a $1,500 fine and be placed under supervised release for a period of five years after completing his prison term.
On September 11, 2013, a jury convicted Cervantes-Perez of two counts of possession of child pornography and two counts of receipt/distribution of child pornography. Evidence presented during trial revealed that the defendant used a peer-to-peer program to search for and acquire images/videos of child pornography beginning in approximately April 2006. Following the execution of a search warrant on January 6, 2012, at the defendant’s residence, HSI agents forensically discovered 156 videos depicting child pornography on Cervantes-Perez’s computer.Assistant United States Attorney Robert Almonte, II, and former Assistant United States Attorney J. Brandy Gardes prosecuted this case on behalf of the Government.
Former Austin Police Officer Enters Guilty Plea to Providing False Information to Federal InvestigatorsRead the Press Release
Former Austin Police Officer Jermaine Gaspard, age 34, faces up to five years in federal prison after pleading guilty this afternoon to making a false statement to federal authorities announced United States Attorney Robert Pitman, U.S. Secret Service Acting Special Agent In Charge Ben Bass, Federal Bureau of Investigation Special Agent In Charge John Boles, San Antonio Division, and Austin Police Chief Art Acevedo.
Appearing before United States Magistrate Judge Andrew Austin in Austin this afternoon, Gaspard admitted that he made a false statement to federal authorities conducting a credit card fraud investigation. According to the factual basis filed in this case, in April 2013, Gaspard knowingly accessed the mobile data terminal inside his Austin Police Department (APD) patrol car and performed an unauthorized database check on a subject. Subsequently, Gaspard showed the subject the APD report he discovered, which included the fact that there was a pending indictment related to the subject’s fraudulent use of a credit card. When questioned by federal authorities, Gaspard denied providing the information to the subject.
Gaspard is out on bond pending sentencing. No sentencing date has been scheduled.
This investigation was conducted by agents with the U.S. Secret Service and the Federal Bureau of Investigation together with the Austin Police Department. Assistant United States Attorney Gregg N. Sofer is prosecuting this case on behalf of the Government.
Eagle Pass Brothers Sentenced to Federal Prison for Ammunition SmugglingRead the Press Release
In Del Rio this afternoon, United States District Judge Alia Moses sentenced 34-year-old Richard Hesles, Jr., and his brother, 24-year-old Damien Hesles to 120 months and 110 months in federal prison, respectively, in connection with a scheme to smuggle over 6,000 rounds of ammunition and hundreds of firearm magazines into the Republic of Mexico stated United States Attorney Robert Pitman, Homeland Security Investigations (HSI) Special Agent In Charge Janice Ayala and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent In Charge Robert Elder, Houston Division.
In addition to the prison term, Judge Moses ordered that Richard Hesles pay a $7,500 fine and be placed under supervised release for a period of three years after completing his prison term; Damien Hesles, a $5,000 fine and three years of supervised release following his prison term. Judge Moses also ordered that Richard Hesles, Jr., and Damien Hesles pay monetary judgments in the amount of $54,414 and $42,634, respectively. Those sums represent the value of property involved or used to facilitate the defendants’ scheme.
On October 25, 2013, the defendants pleaded guilty to one count of aiding and abetting the smuggling of goods from the United States. According to the factual basis in this case, while under surveillance at the Hesles Gun and Knife Store in Eagle Pass, TX, on February 17, 2012, Damien Hesles unloaded several boxes from his vehicle. Those boxes were subsequently loaded into another vehicle which began traveling towards the U.S.-Mexico border. When the driver of that vehicle noticed he was being followed, he stopped the vehicle and discarded the boxes inside a dumpster, then fled the area. Inside the boxes, surveillance agents discovered U.S. defense articles, namely 100 AR-15 assault rifle rear tactical sights and 100 AR-15 assault rifle front tactical sights.
Investigators were able to determine that Piedras Negras, Mexico residents Oliver Bres-Carranza and Erik Alan Garza had spoken to Richard Hesles, Jr., and placed the order for the AR-15 sights. Damien Hesles received payment from Bres-Carranza and Garza for the sights and then shared the money with his brother.
Authorities estimate that the brothers aided and abetted the exportation or attempted exportation of over 6,000 rounds of ammunition designed for use in various firearms, including AK-47 and AR-15 assault rifles as well as .50 caliber sniper rifles; over 300 assault rifle magazines and more than 60 magazines for other types of firearms; and, firearm sights.
The factual basis, which the defendants admitted was accurate, stated that the brothers procured ammunition, firearm magazines and firearm sights for individuals in Mexico from 2010 until 2012 and that Richard Hesles, Jr., knew that the items were going to Los Zetas Cartel operatives in Mexico.
The brothers, along with the store owner, have entered into an agreement with the Government to surrender their Federal Firearms License and to no longer support or fund, directly or indirectly, any business or venture which deals in any manner with the sale, trade or distribution of firearms, ammunition, magazines and/or components/accessories related to the firearms trade.
“Gun and drug trafficking fuels violence by criminal organizations domestically 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.”
On January 15, 2014, Erik Alan Garza was sentenced to 44 months in federal prison and fined $3,000 for his role in the smuggling scheme. Bres-Carranza, who remains in custody, faces up to ten years in federal prison after pleading guilty in October 2013 to his role in the smuggling scheme. Bres-Carranza is scheduled to be sentenced at 9:00am on February 25, 2014, before Judge Moses. A 5th defendant in this case, Rolando Tamayo, was released on bond following his arrest in June 2012, but is now considered a fugitive.
The case was investigated by agents from Homeland Security Investigations (HSI) together with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Assistant United States Attorneys Michael Galdo prosecuted this case on behalf of the Government.
Austin Area Doctor Indicted on Federal Drug ChargesRead the Press Release
In Austin this morning, 47-year-old Richard Edward Sofinowski surrendered to federal authorities to face federal drug trafficking charges announced United States Attorney Robert Pitman and Drug Enforcement Administration Acting Special Agent In Charge Steven S. Whipple, Houston Division.
A three–count federal grand jury indictment returned on last Tuesday charges Sofinowski, an Austin psychiatrist, and his co-defendant, 42-year-old Arza Demi of Austin, with one count of conspiracy to distribute methamphetamines and other controlled substances outside the scope of professional practice as well as two substantive drug distribution counts. Authorities allege that Sofinowski, with assistance from Arza, was responsible for doling out more than 400 prescriptions involving a variety of potent narcotic pain medications in exchange for methamphetamine and U.S. Currency.
The indictment also includes a request for a monetary judgment in the amount of $1 million representing the proceeds derived from the alleged criminal activity.
“Prescription drug abuse has become increasingly prevalent in the community, and it is especially serious when a licensed medical professional violates his professional duties as well as federal law in illegally dispensing controlled substances. If Dr. Sofinowski is found guilty of writing prescriptions for narcotics in violation of the law as charged by the grand jury, he will face serious consequences for enabling others’ dependence on drugs,” stated United States Attorney Robert Pitman.
Sofinowski was released on a personal recognizance bond during his initial appearance today. Demi remains in federal custody after her detention hearing, originally scheduled for this afternoon before U.S. Magistrate Judge Andrew Austin, was continued.Upon conviction, each defendant faces up to 20 years in federal prison.
This investigation was conducted by the Drug Enforcement Administration’s Diversion group in Austin. Assistant United States Attorney Mark Marshall 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 innocent until proven guilty in a court of law.
El Paso Attorney Marco Delgado Sentenced to Maximum 20 Years in Federal Prison for Multi-Million Dollar Money Laundering SchemeRead the Press Release
In El Paso this morning, 47-year-old El Paso attorney Marco Antonio Delgado, a.k.a. Marco Delgado Licon, was sentenced to the maximum 20 years in federal prison after a jury convicted him of conspiracy to launder up to $600 million in illegal drug proceeds announced United States Attorney Robert Pitman and Homeland Security Investigations (HSI) Special Agent in Charge Dennis Ulrich.
In addition to the prison term, U.S. District Senior District Judge David Briones ordered that Delgado pay a $25,000 fine and be placed under supervised release for a period of three years after completing his prison term.
In October 2013, a jury convicted Delgado of conspiracy to commit money laundering. Based on evidence presented during trial, the jury found that from a period of time between 2007 and 2008, Delgado conspired with other individuals to launder $600 million in illegal drug proceeds for members of the Milenio Drug Trafficking Organization. Two episodes of money laundering demonstrated to the jury included a Department of Homeland Security and Carroll County (GA) Sheriff’s Department seizure in September 2007 of $1,000,000 in U.S. Currency traveling from Atlanta, GA, to Mexico via El Paso; and, an HSI seizure of $50,000 in drug proceeds, in July 2008, in Chicago, IL, which was transported to El Paso and deposited in Delgado’s Attorney Interest on Lawyers’ Trust Account (IOLTA) bank account.
Delgado has remained in federal custody since his arrest in November 2012.
Delgado is currently set to go to trial again on March 31, 2014, based on a separate superseding indictment, returned on Wednesday, which charges him with three wire fraud counts and 16 money laundering counts—seven of which allege intent to conceal proceeds of illegal activity and nine of which allege spending of proceeds derived from illegal activity. According to the superseding indictment, in January 2010, Delgado, as a legal representative of FGG Enterprises, Inc. (FGG) signed a $121 million contract between FGG and the Comision Federal de Electricidad (CFE), a Mexican-state-owned utility company, for the acquisition and maintenance of equipment at the Agua Prieta II power plant located in Agua Prieta, Sonora, Mexico. Pursuant to the agreement, payments from CFE to FGG were to be deposited into a FGG bank account located in El Paso.
The superseding indictment alleges that Delgado, for the purpose of personal enrichment and without the consent of the sole owner of FGG, submitted a fraudulent written request to CFE in Mexico which caused two wire transfers—one on March 8, 2010, in the amount of $20 million and one on July 6, 2010, in the amount of $12 million—to be deposited into a bank account he controlled located in the Turks and Caicos Islands. The superseding indictment further alleges that Delgado subsequently wire transferred approximately $1.9 million from the Turks and Caicos Island bank account to bank accounts in El Paso; Taos, NM; and, Pittsburgh, PA, in order to either conceal the nature, location, source or ownership of the proceeds, or spend the proceeds, derived from his scheme.
Each wire fraud count and money laundering (intent to conceal) count call for up 20 years in federal prison upon conviction. Each of the money laundering (spending) counts call for up to ten years in federal prison upon conviction.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
This prosecution resulted from an investigation by the Homeland Security Investigations (HSI). Assistant United States Attorneys Debra Kanof and Anna Arreola are prosecuting these cases on behalf of the Government.Former Normangee, TX Police Chief Enters Guilty Plea Resulting from Methamphetamine Trafficking InvestigationRead the Press Release
In Waco this afternoon, former Normangee Police Chief Joseph Ray “Jody” Navarro pleaded guilty to unlawfully obtaining information from a law enforcement computer system announced United States Attorney Robert Pitman.
Appearing before United States District Judge Walter S. Smith, the 41–year-old Madisonville, TX, resident pleaded guilty to one count of intentionally exceeding authorized access to a protected computer. By pleading guilty, Navarro admitted that in May 2013, he ran a background check on a license plate and name supplied to him by suspected methamphetamine trafficker and Normangee resident Brenda Antanette Evans, age 45. As a condition of his guilty plea, Navarro must relinquish his Texas peace officer’s license.
Should the Court accept Navarro’s guilty plea, Navarro faces up to one year in federal prison and a maximum $100,000 fine at sentencing scheduled for March 19, 2014.
Previously, Evans and co-defendant 25–year-old Joshua Troy Thomas of Normangee pleaded guilty to conspiracy to possess with intent to distribute methamphetamine. According to court records, on April 26, 2013, during an undercover investigation, Evans purchased close to one ounce of methamphetamine from Thomas on behalf of an undercover agent for approximately $1,200. Earlier this month, Judge Smith sentenced Evans to five years in federal prison. Thomas, who faces up to 20 years in federal prison, is scheduled to be sentenced on February 12, 2014.
This investigation was conducted by the Texas Department of Public Safety Criminal Investigation Division, Leon County Sheriff’s Office and the Federal Bureau of Investigation. Assistant United States Attorney Mary Kucera is prosecuting this case on behalf of the Government.Kiosk Operators in Music City Mall in Odessa Plead Guilty in Counterfeiting CaseRead the Press Release
In Midland, 41-year-old Raja Zafar Iqbal and 50–year-old Javed Iqbal Raja of Odessa, TX, face up to ten years in federal prison after pleading guilty to trafficking in counterfeit goods announced United States Attorney Robert Pitman, Homeland Security Investigations Special Agent in Charge Dennis Ulrich and Federal Bureau of Investigation Special Agent in Charge Douglas E. Lindquist, El Paso Division.
Appearing before United States Magistrate Judge David Counts this morning, Raja Zafar Iqbal admitted to trafficking in counterfeit goods from January 2001 to September 2013. According to court records, Iqbal, with assistance from Raja between November 2008 and September 2013, operated Music City Mall kiosks Gold-N-Silver, ICEE Jewelry, Jewel Time, Pretty-N-Sassy, Famous Stars and Straps, and Right Jewelry. During that time, the defendants knowingly sold counterfeit jewelry, watches, buckles, key chains, lanyards and other items. The counterfeit goods bore trademarks identical to or substantially indistinguishable from trademarks used by Angry Bird, Fox Head, Monster, Nike, Playboy, Polo Ralph Lauren, Chanel and Juicy Couture. The defendants admitted that they were not authorized to sell or distribute any of the goods bearing the counterfeit trademarks.
On September 5, 2013, federal agents arrested the defendants and executed search warrants at the kiosks where they seized over 300 counterfeit items.
Both defendants are currently on bond pending sentencing. No sentencing date has been scheduled. Charges are still pending against a third defendant in this case, 33-year-old Muhammad Asif Raza, formerly of Odessa.
This investigation was conducted by Homeland Security Investigations (HSI) and the Federal Bureau of Investigation (FBI). Assistant United States Attorney Austin Berry is prosecuting these cases on behalf of the Government.
Indictment Unsealed Charging El Paso County Juvenile Probation Officer with Federal Sex Trafficking ChargesRead the Press Release
In El Paso, federal authorities have arrested a juvenile probation officer indicted on federal sex trafficking charges announced United States Attorney Robert Pitman, Homeland Security Investigations Special Agent in Charge Dennis Ulrich and Federal Bureau of Investigation Special Agent in Charge Douglas E. Lindquist, El Paso Division.
On Friday, authorities arrested El Paso County juvenile probation officer 28–year-old Timothy McCullouch, Jr., without incident. McCullouch is charged in a superseding federal grand jury indictment, returned on Wednesday (1.15.14) and unsealed following his arrest, with one count of conspiracy to commit sex trafficking of persons and one substantive count of sex trafficking of a minor. McCullouch remains in federal custody pending a detention hearing on January 24, 2014, before United States Magistrate Judge Anne T. Burton. He faces up to life in federal prison upon conviction.
In addition to McCullouch, the indictment charges five El Paso gang members for their roles in the sex trafficking scheme including: 25-year-old Deion Lockhart, 21-year-old Brandon Shapiro, 20-year-old Tai Von Lynch, 24-year-old Richard Gray, and 23–year-old Emmanual Lockhart. All five remain in custody pending trial scheduled for June 6, 2014, before United States District Judge Philip Martinez. Upon conviction, each defendant faces up to life in federal prison.
Court records allege that the defendants have been involved in the forced prostitution of juveniles and adults by the Folk Nation/Gangster Disciples street gang between May 2012 and March 2013. The defendants used a combination of force, fraud, and coercion to compel their victims to engage in sexual activities for money in El Paso; Killeen, TX; Albuquerque, NM; Las Vegas, NV; and in Colorado.
This investigation, conducted by Homeland Security Investigations (HSI), Federal Bureau of Investigation (FBI), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the El Paso Police Department Gang Unit, also resulted in a separate, but related, indictment. Folk Nation/Gangster Disciples members Kiry Hakeem Nalls, age 24, and Grant Rutledge, age 24, were indicted in July of last year on forced prostitution charges. Nalls and Rutlege also face up to life imprisonment upon conviction. Their trial is currently set for March 3, 2014, before Judge Martinez.
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.
Assistant United States Attorneys Rifian Newaz and Robert Almonte are prosecuting these cases on behalf of the Government.
Midland Man Sentenced to Federal Prison for Possessing Child PornographyRead the Press Release
Midland resident Corey Dean Farmer, age 37, will serve 151 months in federal prison followed by a lifetime of supervised release for possession of child pornography announced United States Attorney Robert Pitman and Homeland Security Investigations (HSI) Special Agent in Charge Dennis A. Ulrich, El Paso.
During yesterday’s sentencing hearing in Midland, U.S. District Judge Robert A. Junell also ordered that Farmer pay $157,143.23 restitution to his victims.
On November 1, 2013, Farmer pleaded guilty to the possession of child pornography charge. By pleading guilty, Farmer admitted using multiple peer-to-programs to search for and acquire images of child pornography beginning in approximately March 2012. Following the execution of a search warrant on May 9, 2013, at the defendant’s residence, HSI agents forensically discovered approximately 1,300 images depicting child pornography on Farmer’s computer. Farmer also acknowledged that because he did not turn off the “sharing” feature of his peer to peer software, other persons around the world were able to acquire CP images from his computer.“This is an appropriate sentence for an individual who criminally engaged in the sexual exploitation of children by freely trading their images with predators worldwide,” said Dennis A. Ulrich, special agent in charge of HSI El Paso. “HSI ranks this type of crime high in its mission priorities, and our agency will continue to dedicate resources to identify and bring to justice other child predators who victimize children in this manner."
Assistant United States Attorney Austin Berry prosecuted this case on behalf of the Government.
Remaining San Antonio Businessman Charged in Connection with $133 Million Real Dollar Loss Fraud and Tax Case Pleads GuiltyRead the Press Release
In San Antonio this morning, 61-year-old San Antonio businessman Larry W. Kimes pleaded guilty to his role in what is believed to be the largest real dollar loss fraud and tax related case ever prosecuted in the Western District of Texas announced United States Attorney Robert Pitman, FBI Special Agent in Charge Armando Fernandez and IRS-Criminal Investigation Special Agent In Charge Steve McCollough.
Appearing before United States Chief District Judge Fred Biery, Kimes, the manager of AccounTex Financial Services, LLC, pleaded guilty to a Klein tax fraud conspiracy charge and a mail fraud conspiracy charge. Kimes admitted that between 2002 and 2008, he and other co-conspirators stole more than $133 Million from the clients of a series of Professional Employer Organizations (PEOs) that he and co-defendant Charles Pircher operated. The PEOs controlled by Kimes and Pircher, which included Service Professionals, entered into staff leasing agreements with various client companies to manage the companies’ payroll and insurance programs. Kimes and co-conspirators diverted to their own use and benefit clients’ monies that should have been paid for payroll taxes and insurance premiums.
Kimes faces up to 20 years in federal prison on the mail fraud conspiracy charge and up to five years in federal prison on the Klein tax fraud conspiracy charge. Kimes also agreed that full restitution in this case amounts to $133,401,713. Sentencing has yet to be scheduled.
“This guilty plea brings to justice the six perpetrators of a scheme that stole over $133 Million from clients and taxpayers. The defendants, including Kimes, managed to conceal their crimes behind the complexity of the scheme. Through the hard work of FBI and IRS-CI agents and Tom McHugh in this office, the defendants’ crimes have been revealed and they will be held accountable,” stated United States Attorney Robert Pitman.
Kimes’ co-defendants—Pircher; John D. Walker, II; John Bean; Mike Solis; and, Pat Mire—are all scheduled to be sentenced on February 21, 2014, at 8:30am before Judge Biery.
This case was investigated by agents with the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation. Assistant United States Attorney Thomas J. McHugh is prosecuting this case on behalf of the Government.Businessman Sentenced to Federal Prison for Defrauding City of El PasoRead the Press Release
This morning, 52-year-old Albert G. Torres, the owner of G.O.T. Supply, Inc. was sentenced to 18 months in federal prison followed by three years of supervised release for his role in a scheme to defraud the City of El Paso with respect to garbage collection services announced United States Attorney Robert Pitman and FBI Special Agent in Charge Douglas E. Lindquist.
United States District Judge Kathleen Cardone also ordered that Torres pay a $1,500 fine and $223,840 restitution to the City of El Paso. Furthermore, Judge Cardone ordered that Torres surrender to federal authorities within 90 days to begin serving his prison term.
On May 8, 2013, Torres pleaded guilty to one count of conspiracy to commit wire fraud and deprivation of honest services. By pleading guilty, Torres admitted that from January 2006 to October 2008, he paid bribes and kickbacks to former City of El Paso Fleet Maintenance Chief Lorenzo Avalos and others to secure work repairing and servicing El Paso city garbage trucks. During the scheme, Torres also admitted to selling parts to the City at higher-than-agreed-to prices.
“Today’s sentencing of Mr. Torres should serve as a strong message regarding the FBI’s thorough investigation of all those in the El Paso community involved in public corruption. Nothing erodes the public trust more than those who illegally conspire to line their own pockets with taxpayer dollars,” stated FBI SAC Lindquist.
On August 6, 2013, Avalos was sentenced to 37 months in federal prison followed by three years of supervised release for his role in the scheme. Avalos is also jointly and severally responsible for the restitution ordered by the Court.
This investigation was conducted by the Federal Bureau of Investigation. Assistant United States Attorney Chris Skillern prosecuted this case on behalf of the Government.
San Antonio Man Sentenced to Federal Prison for Aggravated Identity TheftRead the Press Release
In San Antonio today, 69-year-old Daniel Henry Lopez was sentenced to 51 months in federal prison for stealing identification information of individuals he met at Veterans Affairs rehabilitation facilities and using that information to obtain credit cards and fraudulent tax refunds from the Internal Revenue Service announced U.S. Attorney Robert Pitman, U.S. Secret Service Acting Special Agent in Charge James Bass, IRS-Criminal Investigation Special Agent in Charge Steve McCollough and Texas Department of Public Safety Director Steve McCraw.
In addition to the prison term, U.S. District Judge Xavier Rodriguez ordered that Lopez pay restitution in the amount of $84,741 and be placed under supervised release for a period of three years after completing his prison term.
On October 10, 2013, Lopez pleaded guilty to one count of wire fraud and one count of aggravated identity theft. By pleading guilty, Lopez admitted that from January 2012 to April 2013, he devised a scheme to steal means of identification including names, dates of birth and social security numbers from unsuspecting victims. Lopez further admitted that he used that information to create fraudulent income tax returns which, in turn, generated approximately $78,000 for Lopez in false tax refunds. Lopez also created fraudulent documents that he used to open various bank accounts. As a result of his scheme, Lopez caused over $6,000 in losses to financial institutions due to overdrawn checks and other charges.
SAC Steve McCollough noted that the IRS Criminal Investigation Special Agents are aggressively pursuing those who steal others’ identities in order to file false returns. “The IRS is taking additional steps this tax season to further prevent, detect and resolve identity theft cases as soon as possible,” he stated.
This case resulted from an investigation by the U.S. Secret Service, Internal Revenue Service-Criminal Investigation and the Texas Department of Public Safety. Assistant U.S. Attorney Jay Hulings prosecuted this case on behalf of the Government.
San Antonio Drug Trafficker Sentenced to 30 Years in Federal PrisonRead the Press Release
In Del Rio today, 27-year-old Lauro Beltran of San Antonio was sentenced to 30 years in federal prison for cocaine trafficking announced U.S. Attorney Robert Pitman and Homeland Security Investigations Special Agent in Charge Janice Ayala.
In addition to the prison term, U.S. District Judge Alia Moses ordered that Beltran pay a $5,000 fine and be placed under supervised release for a period of five years after completing his prison term.
In July 2013, a federal jury convicted Beltran of one count of conspiracy to possess with intent to distribute over five kilograms of cocaine. Evidence presented during trial revealed that from March 2011 to May 2013, Beltran was responsible for recruiting individuals to transport cocaine from the interior of Mexico into the United States, where it was distributed to locations including Chicago, IL, and Miami, FL. In March 2011, state authorities in Missouri arrested Beltran while he was driving a vehicle which contained $578,328.00 in United States Currency. Authorities seized, and subsequently forfeited, the money believed to be proceeds of drug distribution. At sentencing, Beltran was held accountable for distributing over 150 kilograms of cocaine during the course of the conspiracy.
This case resulted from an investigation by Homeland Security Investigations (HSI) together with the Drug Enforcement Administration and the Phelps County (MO) Sheriff’s Office. Assistant U.S. Attorney Lewis Thomas prosecuted this case on behalf of the Government.
New Mexico Man Sentenced to Federal Prison for Leaking Information About Criminal InvestigationRead the Press Release
In Albuquerque, NM, today, 64-year-old Danny Burnett, a retired educator and husband of a former federal prosecutor, was sentenced to one year and one day in federal prison followed by one year of supervised release for leaking information regarding a criminal investigation to a target announced United States Attorney Robert Pitman.
In September 2013, a federal jury convicted Burnett of one count of giving notice of certain electronic surveillance and one count of making a false statement to federal investigators. Evidence presented during trial revealed that on February 17, 2011, Burnett met at an Albuquerque restaurant with long-time friend Columbus Police Chief Angelo Vega and advised him that federal investigators had a wiretap on Vega’s phone. Burnett was also convicted of making a false statement to federal investigators on February 28, 2012, when he denied notifying Vega that he was the subject of a firearms trafficking investigation.
“By disclosing the existence of a wiretap to former Columbus Police Chief Angelo Vega, Mr. Burnett undermined a federal investigation of the trafficking of firearms into Mexico and put law enforcement agents in jeopardy. His friendship with Vega explains but does not excuse or justify compromising the investigation of such serious criminal activity. While Mr. Burnett was not a party to the underlying criminality, he committed a serious violation of law in his own right. This office and the Department of Justice will vigorously investigate and prosecute crimes against the integrity of the criminal justice system,” stated United States Attorney Robert Pitman.
This case was investigated by agents with the Department of Justice Office of the Inspector General (DOJOIG), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Homeland Security Investigations (HSI). Assistant United States Attorneys Steven Spitzer and Greg McDonald from the Western District of Texas prosecuted this case on behalf of the government.
West Texas Man Sentenced to Federal Prison for Illegally Possessing Unregistered Firearm SilencersRead the Press Release
Midland resident and land surveyor Steven Leonard Prewit, age 54, was sentenced to 33 months in federal prison for possessing eight unregistered silencers in violation of National Firearms Registration requirements, announced United States Attorney Robert Pitman, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Dallas Field Office Special Agent in Charge Robert Champion and Federal Bureau of Investigation (FBI) Special Agent in Charge Douglas E. Lindquist, El Paso Division.
United States District Judge Robert A. Junell also ordered that Prewit pay a $10,000 fine, be placed under supervised release for a period of three years after completing his prison sentence and surrender to federal authorities no later than March 19, 2014, to begin serving his prison term.
According to court records, a search by the ATF and FBI of both Prewit’s home and a ranch near Balmorhea on May 2, 2013, uncovered the silencers as well as a number of fully automatic machine guns and improvised explosive devices (IEDs). Specifically, Prewit possessed eight (8) firearms silencers, eighteen (18) fully automatic machine guns, one (1) short barreled rifle and four (4) IEDs; all of which were unregistered. All eight of the unregistered firearms silencers did not have serial numbers or manufacturer’s markings as required.
The investigation into Prewit began in March of last year when ATF and FBI agents received information that Prewit was in possession of the items mentioned above. An FBI undercover employee was on the ranch with Prewit in both March and April of 2013 when he saw Prewit in possession of multiple fully automatic machine guns, silencers and IEDs. Prewit admitted to the FBI undercover employee that none of the weapons, silencers and/or IEDs was registered to him and that he knew they should have been.
“This investigation is an example of the hard work of ATF Special Agents and the excellent cooperation we have with our Law Enforcement partners. Because of this cooperation, we were able to seize these dangerous explosive devices, silencers, and machine guns to ensure they never found their way in our communities and the violator faced justice,” said ATF Special Agent in Charge Robert R. Champion.
Under Title 26, United States Code, Chapter 53, any individual who possesses a machine gun, destructive device, or firearm silencer is required by federal law to register the firearms and/or devices with the Alcohol Tobacco and Firearms (ATF) National Firearms Act Branch (NFA). Before possessing such firearms, the person must complete and have approved an ATF Form 4: Application for Tax Paid Transfer and Registration of the Firearm and pay a tax. After the application is approved, the firearm may be transferred and the person will be entered into the National Firearms Registration and Transfer Record.
On August 20, 2013, Prewit pleaded guilty to possessing the unregistered silencers. In exchange for Prewit’s guilty plea, the Government agreed to dismiss charges which involved the possession of the machine guns and explosive devices. Assistant United States Attorney LaTawn Warsaw prosecuted this case on behalf of the Government.
San Antonio Texas Syndicate Leader Sentenced to Federal Prison on Racketeering ChargeRead the Press Release
In San Antonio this morning, Texas Syndicate (TS) leader Rolando “Black Rabbit” Muniz, age 31, was sentenced to 15 years in federal prison followed by five years of supervised release for conspiring to violate the Racketeering Influenced Corrupt Organization (RICO) statute announced United States Attorney Robert Pitman.
On November 8, 2013, Muniz pleaded guilty to the RICO conspiracy charge. By pleading guilty, Muniz admitted that beginning in January 2008 until the present, he and others conspired to engage in a pattern of organized criminal conduct including four murders, two attempted murders, conspiracy to commit murder, drug trafficking and other crimes in furtherance of the goals and the mission of the Texas Syndicate.
Specifically, Muniz admitted to distributing various amounts of cocaine and heroin throughout San Antonio as well as participating in the planning of the attempted murder of fellow gang member and co-defendant Andrew Vidaurri on July 2, 2011. During that attempt, Andrew Vidaurri’s sister-in-law, Priscilla Ann Vidaurri, was killed in the crossfire by TS gunmen. Andrew Vidaurri is currently serving a four-year prison term after pleading guilty to the RICO conspiracy charge.
Muniz is the last of 20 TS members and associates convicted and sentenced for their roles in this criminal enterprise. The other defendants received sentences ranging up to 37 years in federal prison.
“This investigation targeted gang members who were attempting to establish a larger presence in San Antonio. After 20 convictions and federal prison sentences handed down to the Texas Syndicate leadership and it’s most violent members, this prosecution has reached a successful conclusion,” stated U.S. Attorney Robert Pitman.
This case resulted from a joint investigation by the Drug Enforcement Administration and it’s Task Force; Bureau of Alcohol, Tobacco, Firearms and Explosives; Internal Revenue Service-Criminal Investigation; United States Marshals Service; Bexar County Sheriff’s Office, Bexar County District Attorney’s Office, and the San Antonio Police Department. The DEA Task Force is comprised of members of the Comal County Sheriff’s Office, Balcones Heights Police Department, Kendall County Sheriff’s Office, New Braunfels Police Department, Guadalupe County Sheriff’s Office, Terrell Hills Police Department, the Texas Department of Criminal Justice - Inspector General; and the Texas National Guard. Assistant United States Attorneys Joey Contreras and Karen Norris prosecuted this case on behalf of the Government.
Federal and State Authorities Arrest 28 Individuals Yesterday in Connection with Permian Basin Cocaine and Heroin Distribution OperationsRead the Press Release
Authorities arrested 28 individuals yesterday on federal and state drug charges announced United States Attorney Robert Pitman, Midland County District Attorney Teresa J. Clingman, Drug Enforcement Administration Special Agent in Charge Joseph A. Arabit, El Paso Division, and Midland Police Chief Price Robinson.
15 of those arrested yesterday, including 46–year-old Jesus Enrique Gabaldon-Villa, 64-year-old Jesus Manuel Anchondo of Odessa, 50-year-old Samuel Ortiz of Midland, and 30–year-old Jesse “Chuy” Martinez of Midland, are charged in four federal grand jury indictments returned last month and unsealed today in Midland.
Three of the federal indictments (Gabaldon-Villa, et al.; Anchondo, et al.; and, Ortiz, et al.) focus on a heroin trafficking conspiracy operating in the Permian Basin area. The indictments charge ringleader Jesus Gabaldon-Villa, Jesus Anchondo, Samuel Ortiz and 11 others with conspiracy to possess with intent to distribute heroin. Authorities allege that from May to December of last year, the defendants were responsible for transporting multiple ounce quantities of “high quality” heroin from the Sierra Blanca area then selling it in Midland and Odessa. One defendant, 59-year-old Rogelio Villa, Sr., remains a fugitive. Upon conviction, the defendants charged in these three indictments face sentences of up to 20 years in federal prison or between five and 40 years in federal prison depending on the amount of heroin involved.
The other indictment (Martinez, et al.) focuses on cocaine trafficking in the Midland area. In this indictment, ringleader Jesse “Chuy” Martinez, along with 30–year-old Julio Rodriguez, and 34-year-old Alexander “Hondo” Castillo, all of Midland, are charged with one count of conspiracy to distribute cocaine. Authorities allege that from April to December of last year, Martinez, Rodriguez and Castillo were responsible for the distribution of user quantities of cocaine totaling approximately five kilograms throughout the Midland area. Upon conviction, each faces between five and 40 years in federal prison.
Thirteen (13) who were arrested yesterday face state drug charges. Those charges are being pursued by the Midland County District Attorney’s Office.
“Through our partnerships with federal, state, and local law enforcement agencies, we are targeting local trafficking networks responsible for the illegal distribution of heroin, cocaine, methamphetamine and other dangerous drugs. This investigation serves as a compelling example of our joint success and demonstrates the value of multi-agency collaboration. The resulting indictments, arrests and seizures will have a positive impact in the community, where the distribution and abuse of illegal drugs can have devastating health and societal effects. We will continue to work together to pursue drug trafficking organizations at every level in an effort to make our cities and neighborhoods safer,” stated DEA Special Agent in Charge Joseph A. Arabit.
These charges and arrests resulted from investigations conducted by the Drug Enforcement Administration and the Midland Police Department together with the Federal Bureau of Investigation, Homeland Security Investigations, U.S. Marshals Service and the Ector County Sheriff’s Office. The Texas Department of Public Safety, Odessa Police Department, Midland County Sheriff’s Office and the U.S. Probation Office assisted in making yesterday’s arrests.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Convicted Felon Sentenced to Maximum Term of Imprisonment on Firearms ChargesRead the Press Release
In San Antonio this morning, convicted felon Eloy Olivares Garza was sentenced to 15 years in federal prison followed by five years of supervised release for conspiring to smuggle approximately 220 assault-type firearms into Mexico announced U.S. Attorney Robert Pitman, HSI Special Agent in Charge Janice Ayala and ATF Special Agent in Charge Robert Elder.
On September 12, 2013, Garza pleaded guilty to one count of conspiracy to smuggle goods from the U.S. and one count of being a convicted felon in possession of a firearm. According to court records, from August 2006 to February 2007, Garza conspired with others to illegally purchase the firearms from licensed dealers in and around San Antonio and Austin, then smuggle them into Mexico without receiving the appropriate licenses from the United States Department of State. Garza’s criminal history includes a 1990 conviction for conspiracy to possess with intent to deliver marijuana.
This case resulted from an investigation by Homeland Security Investigations together with the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant United States Attorneys Mark Roomberg prosecuted this case on behalf of the Government.
United States Attorney's Office for the Western District of Texas Collects More Than $15.7 Million in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2013Read the Press Release
The United States Attorney’s Office for the Western District of Texas (WDTX) collected $15,712,319.55 in criminal and civil actions in Fiscal Year 2013 announced U.S. Attorney Robert Pitman. Of this amount, $10,642,574.35 was collected in criminal actions and $5,069,745.20 was collected in civil actions.
Additionally, the Western District of Texas worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $203,456,628.90 in civil actions pursued jointly. The WDTX, working with partner agencies and divisions, also collected over $8.6 million in asset forfeiture actions in FY 2013. Forfeited assets are deposited into the Department of Justice Assets Forfeiture Fund and are used to restore funds to crime victims and for a variety of law enforcement purposes.
“In addition to securing punishment for those who break the law, it's an important part of our mission to separate them from the profits of their misdeeds and return the money to its rightful owners, whether crime victims or taxpayers,” stated United States Attorney Robert Pitman.Notable FY 2013 WDTX collections include:
SAN ANTONIO - In April, the WDTX recovered $3,875,459.65 as part of a Health Care Fraud civil settlement with Caremark, Inc. This amount represents the federal share of a settlement between Caremark, the Federal government and the state of Texas. The payment was made to settle allegations that Caremark violated the False Claims Act by intentionally failing to properly process Medicaid claims for reimbursement under the Medicaid Third Party Liability statute;
EL PASO - In August, the WDTX recovered $2,855,791.04 in fines and restitution from Oswaldo Kuchle-Lopez for his role in a conspiracy to commit wire fraud by scheming to defraud the Export-Import Bank of the United States for loans purportedly involving construction vehicles and agricultural equipment destined for Mexico;
AUSTIN - In June, the WDTX collected $342,862.65 from Harris Eugene “Gene” Yarbrough, III, as part of his Court-ordered restitution of $2,150,688.26 based on his 2002 bank fraud conviction;
WACO - In August, the WDTX collected $187,556.69 in fines and restitution from High Performance Ropes of America, Inc., for their role in making false statements to the Department of Labor concerning violations of the Fair Labor Standards Act by failing to pay its workers overtime wages; and,
MIDLAND - In May, the WDTX collected $89,896.69 in restitution from Gary Gardenhire stemming from the sale of his racetrack. The collection was applied towards his Court-ordered restitution of $2,444,165.10 based on his 2010 mail fraud conviction for scheming to steal hydraulic hoses from a Permian basin business and sell them for profit.
Attorney General Eric Holder announced on Thursday that the Justice Department collected approximately $8.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2013. That figure represents nearly three times the appropriated $2.76 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
“The department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the American taxpayer,” said Attorney General Holder. “It is critical that Congress provide the resources necessary to match the department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Two Former Officers Plead Guilty in Connection with Fraudulent U.S. Army Contracts SchemeRead the Press Release
Investigation focused on Government contracts for radiology equipment and personnel worth millions
In San Antonio this morning, New Braunfels, TX, resident Lawrence Peter Fenti and Manhattan, KS, resident Heidi Lynn Webster pleaded guilty to defrauding the United States in connection with U.S. Army contracts worth millions of dollars for medical equipment and personnel announced United States Attorney Robert Pitman. Fenti is a 43-year-old former non-commissioned officer in charge of Base Realignment and Closure issues for Brooks Army Medical Center (BAMC) radiology. Webster is a 50-year-old former U.S. Army officer physician and civilian contractor who specialized in radiology.
Appearing before Chief U.S. District Judge Fred Biery, Fenti and Webster pleaded guilty to one count of conspiracy and one count of bribery. The conspiracy included intent to: defraud the United States; violate the Government conflict of interest law; commit bribery; commit wire fraud; make false claims against the United States; make false statements to federal authorities; and, commit money laundering.
By pleading guilty, the defendants admitted to conspiring together since 2007 to fraudulently secure multiple Army contracts and sub-contracts for radiology equipment and services by using Fenti’s position of influence, taking advantage of a prime contractor’s non-competitive bidding status, making false statements and fraudulent claims, as well as bribing Army personnel and Army contractors. Those contracts included a $2 million BAMC magnetic resonance imaging (MRI) contract in June 2008, a $4.9 million BAMC MRI contract in July 2008, a $633,406.69 BAMC staffing contract in September 2008, and a $336,600 MRI contract in September 2009 for Womack Army Medical Center at Fort Bragg, NC. Webster also admitted to paying Fenti thousands of dollars for his role in the overall scheme.
“The defendants in this case treated the American taxpayers like their own personal ATMs, rigging bids for government contracts and inflating invoices for radiology equipment and services. This prosecution should send a message to would-be thieves that we are keeping a close watch on government contracting and when we detect fraud we will respond with the full force of the criminal law,” stated U.S. Attorney Pitman.
Per their plea agreements, Fenti and Webster face a maximum six years in federal prison. During the investigation, authorities have seized approximately $500,000, much of which has been forfeited to the Government. In addition, the Government is seeking a monetary judgment against Fenti in the amount of $402,485.35, as well as a $613,828 monetary judgment against Webster, representing the amount of proceeds obtained directly or indirectly as a result of their fraudulent scheme. Sentencing will occur after the completion of a pre-sentence report by the U.S. Probation Office.
A third defendant in this case, 43-year-old John Walter Hoffman, owner/operator of Hoffman Surgical Devices, Inc. in San Antonio, is awaiting trial on charges of conspiracy to commit wire fraud, money laundering, wire fraud and making false statements to U.S. Army authorities. Jury selection is scheduled for March 3, 2014.
This investigation was conducted by the U.S. Army Criminal Investigations Division (Army CID), the Internal Revenue Service--Criminal Investigation (IRS-CI), Defense Criminal Investigative Service (DCIS) and the Federal Bureau of Investigation (FBI). Assistant United States Attorney James Blankinship is prosecuting this case on behalf of the Government.
Three Permian Basin Business Owners and Title Company Executive Indicted in Multi-Million Dollar Mortgage Fraud SchemeRead the Press Release
Federal authorities have arrested three Permian Basin business owners and a title company executive charged in connection with a mortgage fraud scheme that involved approximately 800 real estate properties and about $45 million in loans announced United States Attorney Robert Pitman and Federal Bureau of Investigation Special Agent in Charge Douglas E. Lindquist, El Paso Division.
A two-count indictment, returned yesterday and unsealed this afternoon, charges 58–year-old Stephen Mark Hilliard, owner of Comeback Properties, LLC, Hilliard Properties, LLC, SMH Properties, LTD, and Katpast Enterprises, LP; 42-year-old Michael Duraine Cowan, II, owner of TLC Properties, LLC, and MCBW Properties, LTD; 61-year-old Odessa real estate agent Cynthia Gayle Hirsch; and, 55-year-old Berta Laura McFaddin, Division Vice President of Administration for Stewart Title Company in Midland, with one count of conspiracy to commit bank fraud. Hilliard and Cowan are also charged with one count of conspiracy to commit money laundering.The indictment alleges that from March 2003 until August 2011, the defendants were allegedly involved in a fraudulent “same-day property flip” scheme. According to the indictment, defendants Hilliard and/or Cowan would purchase a specific property utilizing one of their respective investment companies, then re-sell the same property on the same day at an “inflated” sales price to another Hilliard and/or Cowan investment company. Hilliard and/or Cowan obtained mortgage loans by submitting to the bank fraudulent and misleading documentation created by the defendants and without disclosing to the bank the initial sale of the property.
Upon conviction, each defendant faces up to 30 years in federal prison for bank fraud conspiracy. Hilliard and Cowan also face up to 20 years in federal prison upon conviction of money laundering conspiracy. The indictment also seeks a $27 million monetary judgment against the defendants representing the alleged proceeds derived from their fraudulent scheme.
Yesterday’s arrests and indictment resulted from an investigation conducted by the Federal Bureau of Investigation together with the Texas Department of Insurance. “This investigation demonstrates our commitment to the community of Midland that this type of crime will not be tolerated and will be aggressively investigated,” stated FBI SAC Douglas E. Lindquist.
Assistant United States Attorney Austin Berry 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.
Permian Basin Men Sentenced to Federal Prison in Multi-Million Bank Fraud SchemeRead the Press Release
In Midland this afternoon, 36-year-old Raymond Holguin, Jr., of Odessa and 37–year-old Gustavo Pizarro of Midland were sentenced to 41 months and 18 months, respectively, in federal prison for defrauding My Community Federal Credit Union of millions of dollars announced United States Attorney Robert Pitman and Federal Bureau of Investigation Special Agent in Charge Douglas E. Lindquist, El Paso Division.
In addition to the prison term, United States District Judge Robert A. Junell ordered that Holguin pay $3,934,627 restitution and be placed under supervised release for a period of five years after completing his prison term. Judge Junell ordered that Pizarro pay $3,914,680 restitution and be placed under supervised release for a period of five years after completing his prison term. Judge Junell also ordered both defendants to surrender to federal authorities on or before February 18, 2014, to begin serving their prison terms.
Last year, Holguin, Pizarro and 40-year-old Michael Franco of Midland all pleaded guilty to one count of conspiracy to commit bank fraud in connection with this investigation. According to court records, beginning in April 2007, the defendants engaged in an 18-month-long scheme that defrauded the FDIC-insured financial institution through the issuance of fraudulent car loans. Holguin, operator of Motor City, an auto dealership in Odessa, TX; Pizarro, General Sales Manager at Motor City; and, Franco, a loan officer at My Community Federal Credit Union, all devised a plan to approve car loans for customers who did not meet the credit union’s lending standards. Holguin and Pizarro presented auto loan applications to Franco that included false information such as inflated income. Holguin and Pizarro would also add amenities to the cars that did not exist in an effort to increase the value of the car and receive a larger loan amount. Franco never verified any of the information contained in the loan documents before processing the loans and, in return, was paid a kickback by Holguin for every car loan that was approved. The scheme resulted in Franco approving more than 300 fraudulent car loans on behalf of Holguin and Pizarro which led to a loss at My Community Federal Credit Union in excess of $4 million.
On November 25, 2013, Franco was sentenced to 18 months in federal prison followed by five years of supervised release and ordered to pay $4,122,532.19 restitution to the bank. All restitution amounts ordered by the Court in this case are to be paid joint and several by the defendants.
The case was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant United States Attorney V. LaTawn Warsaw.
Former Texas Association of School Boards (TASB) Workers Compensation Claims Administration Director Pleads Guilty to Mail Fraud ChargesRead the Press Release
In Austin today, Herman G. Wilks, former Department Director of Workers’ Compensation Claims Administration for the Texas Association of School Boards, Inc. (TASB), pleaded guilty to stealing over $500,000 from the TASB’s Risk Management Fund announced United States Attorney Robert Pitman and Federal Bureau of Investigation Special Agent in Charge Armando Fernandez, San Antonio Division.
The TASB is a voluntary, non-profit, statewide educational association that serves and represents local Texas school districts, regional education service centers, community colleges, and tax appraisal districts. One of the products and services offered by TASB to its members is the TASB Risk Management Fund. The TASB Risk Management Fund provides specific coverage to members through their requisite financial contributions into the risk management pool. This coverage can then apply with regard to unemployment compensation claims, workers' compensation claims, auto, liability and property programs. Wilks’ TASB duties included the supervision of setting up member school districts' workers' compensation claims, adjudicating medical bills and carrying out the utilization, management and pre-authorization functions required by the workers' compensation statutes. Pursuant to his title and area of responsibility at TASB, Wilks had control over and direct access to the entire claimant pay process by which TASB accepted and paid workers' compensation claims for its contributing members by way of the TASB Risk Management Fund.
Appearing before U.S. District Judge Sam Sparks this morning, Wilks pleaded guilty to ten counts of mail fraud. By pleading guilty, Wilks admitted that from April 2008 until March 2013, he unlawfully obtained approximately $514,400 from TASB via the TASB Risk Management Fund by submitting fraudulent workers’ compensation claims on behalf of Medco Implantable Supply, a company he created for the sole purpose of carrying out his fraudulent scheme, for products and services that were never actually ordered, provided or rendered.
“Like many defendants, Mr. Wilks undoubtedly concocted his scheme of setting up a dummy company to steal hundreds of thousands of dollars from the TASB Risk Management Fund with full confidence that he would get away with it. This prosecution should remind would-be thieves like Mr. Wilks that their schemes will be discovered and they will lose not only their ill-gotten gain, but their livelihoods, reputations and quite likely their freedom as a result,” stated U.S. Attorney Pitman.
Wilks faces up to 20 years in federal prison per count. He is currently out on bond pending sentencing which has yet to be scheduled.
This indictment resulted from an investigation conducted by the Federal Bureau of Investigation. Assistant United States Attorney Ashley Hoff is prosecuting this case on behalf of the Government.
Former Political Consultant Antonio Dill Sentenced to Federal Prison in El Paso Corruption CaseRead the Press Release
This afternoon, former El Paso political consultant Antonio Dill was sentenced to ten months in federal prison followed by two years of supervised release for his role in a “pay-to-play” scheme uncovered during the ongoing public corruption investigation in El Paso announced United States Attorney Robert Pitman and FBI Special Agent in Charge Douglas E. Lindquist.
United States District Judge Frank Montalvo also ordered that the 44–year-old Dill pay a $25,000 fine. Furthermore, Judge Montalvo ordered that Dill surrender to federal authorities on or before February 4, 2014, to begin serving his prison term.
Dill, who pleaded guilty to one count of conspiracy to commit mail fraud and deprivation of honest services, admitted that in 2007, he served as a “middle man” in a bribery scheme involving former El Paso County Judge Anthony Cobos. According to court records, Dill received a $1,500 cash bribe which he forwarded to Cobos for his vote and influence in refinancing approximately $40 million of El Paso County debt and to terminate the then El Paso County financial advisor’s contract to be replaced with another company.
This FBI investigation has resulted in 39 federal convictions -- 36 individuals who entered guilty pleas and three individuals who were convicted by juries.
Assistant United States Attorney Debra Kanof prosecuted this case on behalf of the Government.
San Antonio Mail Thief and Convicted Felon Sentenced to Federal PrisonRead the Press Release
In San Antonio this morning, 28-year-old John Michael Hawkins was sentenced to 77 months in federal prison for possession of stolen mail and being a convicted felon in possession of a firearm announced United States Attorney Robert Pitman and U.S. Postal Inspection Service Inspector in Charge Robert Wemyss, Houston Division.
In addition to the prison term, U.S. Chief District Judge Fred Biery ordered that Hawkins pay $4,228.56 restitution and be placed under supervised release for a period of three years after completing his prison term.
In February 2013, San Antonio Police Officers arrested Hawkins. At that time, Hawkins was in possession of stolen mail as well as a significant amount of credit cards in names other than his, various business checks, multiple personal checks, U.S. passports and Texas driver licenses. Hawkins was also in possession of a .357 caliber revolver.
On August 1, 2013, Hawkins pleaded guilty to the federal charges. Hawkins’ criminal history includes state felony convictions for burglary of a habitation, unauthorized use of a vehicle, vehicle theft and evading arrest/ detention with a vehicle.
“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 Robert Wemyss, Inspector in Charge, Houston Division.
This case was investigated by the U.S. Postal Inspection Service, Bureau of Alcohol, Tobacco, Firearms and Explosives and the San Antonio Police Department. Assistant U.S. Attorney Michael Hardy prosecuted this case on behalf of the Government.
Former El Paso County Judge Anthony Cobos Sentenced to Federal Prison in El Paso Corruption CaseRead the Press Release
This afternoon, former El Paso County Judge Anthony Cobos and Lorenzo Hilario Aguilar were each sentenced to four years in federal prison followed by three years of supervised release for their roles in a “pay-to-play” scheme uncovered during the ongoing public corruption investigation in El Paso announced United States Attorney Robert Pitman and FBI Special Agent in Charge Douglas E. Lindquist.
United States District Judge Frank Montalvo also ordered that the 46–year-old Cobos pay a $10,000 fine; the 63-year-old Aguilar, a $50,000 fine. Furthermore, Judge Montalvo ordered Cobos and Aguilar to surrender to federal authorities on or before February 11, 2014, to begin serving their prison terms.
In September, Cobos and Aguilar each pleaded guilty to one count of conspiracy to commit mail fraud and deprivation of honest services. By pleading guilty, the defendants admitted that in 2007, they participated in a bribery scheme involving former El Paso County Judge Anthony Cobos’ vote and influence on El Paso County contracts. According to court records, Cobos accepted bribes in the form of cash money and other benefits, including campaign contributions to Cobos-supported individuals running for the El Paso City Council, in exchange for his vote and influence in refinancing approximately $40 million of El Paso County debt and to terminate the then El Paso County financial advisor’s contract and replace with another company.
“The sentences handed down today should reassure the public that we will be relentless in pursuing those who would attempt to corrupt public officials as well as those public officials who violate their public trust for personal gain,” stated U.S. Attorney Robert Pitman.
This FBI investigation has resulted in 39 federal convictions -- 36 individuals who entered guilty pleas and three individuals who were convicted by juries.
“Nothing destroys public confidence more than those who illegally conspire to benefit from taxpayer dollars. The FBI is committed to protecting the El Paso community by holding violators personally accountable for their actions,” stated FBI SAC Douglas E. Lindquist.
Assistant United States Attorney William F. Lewis, Jr. prosecuted this case on behalf of the Government.
U.S. Army Soldier Charged with Attempting to Sell Stolen C-4 Explosive MaterialRead the Press Release
A federal criminal complaint was unsealed today that charges 23–year-old U.S. Army soldier Tyler Glen Patrick with possession and transportation of stolen explosive material announced United States Attorney Robert Pitman and FBI Special Agent in Charge Armando Fernandez.
According to the criminal complaint, on December 17, 2013, federal authorities arrested Patrick in Copperas Cove, TX, after he attempted to sell a one-and-a-quarter-pound block of C-4 explosive which he previously stole following a field exercise on Fort Hood, TX.
Patrick, who remains in federal custody, faces up to ten years in federal prison and a maximum $250,000 fine upon conviction.
This case is being investigated by the Federal Bureau of Investigation together with the U.S. Army Criminal Investigation Division. Assistant United States Attorney Greg Gloff is prosecuting this case on behalf of the Government.Former Socorro I.S.D. Trustee Sentenced to Federal Prison in El Paso Corruption CaseRead the Press Release
In El Paso today, former Socorro Independent School District Trustee Guillermo “Willie” Gandara, Sr., was sentenced to 42 months in federal prison followed by three years of supervised release for using his influence with the school board to secure and retain lucrative health services contracts for ACCESS Health Source announced United States Attorney Robert Pitman and FBI Special Agent in Charge Douglas E. Lindquist.
United States District Judge Frank Montalvo also ordered that Gandara pay a $25,000 fine as well as $5,575.67 restitution to Socorro ISD. Furthermore, Judge Montalvo ordered that Gandara self–surrender to a U.S. Bureau of Prisons designated facility on or before February 4, 2014, to begin serving his prison term.
“The sentence handed down today should reassure the public that we will be relentless in pursuing those public officials who violate their public trust for personal gain,” stated U.S. Attorney Robert Pitman.
ACCESS, among other things, was a third party administrator of healthcare benefits for self-insured entities. Between 1998 and 2007, ACCESS contracted with self-insured local (El Paso) government entities, including Socorro ISD, to provide administrative services for health insurance programs provided by their employer.
On July 22, 2013, Gandara pleaded guilty to one count of conspiracy to commit mail fraud. By pleading guilty, Gandara admitted that from 1998 until July 2007, he schemed to defraud the school district and deny the citizens of El Paso the right to honest services by their elected officials. Furthermore, that Gandara knowingly aided and abetted former ACCESS CEO and President Frank Apodaca and others by performing acts in his official capacity which benefited ACCESS.
“Today’s sentencing of former SISD Trustee Guillermo Gandara, Sr., marks the final sentencing of eleven individuals who were entrusted to serve the citizens of Socorro and El Paso but instead used their positions and influence to promote their own personal interests. This sentencing is yet another reminder of the FBI’s continued commitment to pursue individuals who have violated the public’s confidence and hold them accountable, irrespective of status,” stated FBI Special Agent In Charge Douglas E. Lindquist.
This FBI investigation has resulted in 39 federal convictions -- 36 individuals who entered guilty pleas and three individuals who were convicted by juries.
Assistant United States Attorneys Debra Kanof and Jose Luis Gonzalez are prosecuting this case on behalf of the Government.Russell Allen Erxleben Pleads Guilty to Role in Ponzi Scheme That Generated an Estimated $2 MillionRead the Press Release
In Austin this afternoon, 56–year-old Russell Allen Erxleben of Dripping Springs, TX, pleaded guilty to federal wire fraud and money laundering charges in connection with a Ponzi scheme that authorities believe generated more than $2 million. As a result, Erxleben faces an agreed sentence of 90 months in federal prison plus full restitution to be determined by the Court.
According to court records, from 2005 until October 2009, Erxleben devised and implemented a scheme to defraud and to obtain money from investors by the use of fraudulent pretenses, representations and promises. Erxleben used several companies, including WALTEC Consultants, LRE Holdings, and The MDM Group, to promote investments in fraudulent ventures including investments in post-WWI German government gold bearer bonds and in a work of art purportedly by Paul Gauguin, a famous late 19th-early 20th century artist. By pleading guilty, Erxleben admittedly used investment proceeds for the benefit of himself and his family, to pay dividends to previous investors, and to fund other undisclosed endeavors, contrary to promises and representations made by the defendant. In furtherance of the fraudulent scheme, Erxleben made various wire transfers using numerous financial accounts which were opened and maintained by others, including one or more family members, in an effort to avoid detection by authorities.
Internal Revenue Service-Criminal Investigation Special Agent In Charge Steven McCollough noted that all investors need to be wary when investing their hard earned money. “Investors should not allow themselves to be blinded by the quasi-celebrity status of individuals like Russell Allen Erxleben, a former University of Texas and NFL football player, when making investment decisions,” McCollough said.
Erxleben remains in federal custody pending formal sentencing scheduled for February 24, 2014, before U.S. District Judge Lee Yeakel.
This indictment resulted from an investigation by the Internal Revenue Service-Criminal Investigation and the Texas State Securities Board along with assistance from Homeland Security Investigations (HSI). Assistant United States Attorneys Matthew Devlin and Alan Buie are prosecuting this case on behalf of the Government.
Federal Grand Jury Indicts Two Women in Immigration Document Fraud SchemeRead the Press Release
In San Antonio today, a federal grand jury returned an indictment charging two women with allegedly engaging in an immigration document fraud scheme for financial gain announced United States Attorney Robert Pitman and Federal Bureau of Investigation Special Agent In Charge Armando Fernandez, San Antonio Division.
A six-count indictment charges 48–year-old Yolanda Hernandez de Arteaga, owner/operator of the Los Compadres Restaurant in LaVernia, TX, and 55–year-old Maria de Lourdes Montano-Vicencio, an undocumented alien living in Houston, TX, with one count of conspiracy to commit wire fraud and five substantive counts of wire fraud.
According to the indictment, from October 2010 through December 2012, the defendants initiated a series of wire fraud schemes whereby they would induce vulnerable immigrants in the LaVernia area into giving them money in exchange for securing legal immigration status documents. In the schemes, the defendants claimed to have personal contacts with immigration authorities who could provide each victim with items such as a social security card, a resident alien car and a work permit in about six months-time. During the time of the conspiracy, the defendants allegedly collected over $100,000 from more than 20 immigrants desperate for legal immigration status documents. The indictment states that on at least 22 different dates, Arteaga wired proceeds from the scheme from LaVernia to Montano-Vicencio in Houston via Western Union or MoneyGram.
The indictment further alleges that when the victim-immigrants became angry regarding the lack of documents or refund of funds, the defendants threatened to notify immigration authorities and facilitate the deportation of the immigrants if the victims made trouble.
The defendants face up to 20 years for each charge upon conviction. The federal government is also seeking a $150,000 monetary judgment against the defendants representing the proceeds derived from their alleged scheme.
This indictment resulted from an investigation conducted by the agents with the Federal Bureau of Investigation with assistance from Homeland Security Investigations (HSI) and the LaVernia Police Department. Assistant United States Attorney Bettina Richardson 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.
Alabama Man Sentenced to Maximum 20 Years in Federal Prison for Assault of U.S. Border Patrol Agents Near Langtry, TexasRead the Press Release
Incident resulted in the deaths of two area residents and serious injury to a third
In Del Rio this afternoon, 39-year-old David Steiner of Vinegar Bend, AL, was sentenced to 20 years in federal prison after pleading guilty to felony assault of a U.S. Border Patrol agent announced United States Attorney Robert Pitman and Rodolfo Karisch, Del Rio Sector Chief Patrol Agent, U.S. Border Patrol.
In addition to the prison term, United States District Judge Alia Moses ordered that Steiner pay $4,390 restitution to the owner of the vehicle he stole and wrecked. Judge Moses also ordered that Steiner be placed on supervised release for a period of three years after completing his prison term.
In July, Steiner pleaded guilty to one count of assaulting, resisting, or impeding an officer by using a deadly or dangerous weapon. By pleading guilty, Steiner admitted that on May 25, 2012, he used his vehicle to charge at three Border Patrol agents near Langtry, TX, during an attempt to avoid potential detention after fleeing from a traffic stop near Comstock, TX.
As a result of Steiner’s actions, the agents were forced to drive off the paved roadway to avoid being struck by Steiner. While looking for Steiner, agents came upon a vehicle accident near Sanderson, TX, wherein Steiner hit an oncoming vehicle killing two occupants and gravely injuring the driver while trying to evade law enforcement.
This case was investigated by agents with the Department of Homeland Security – U.S. Customs and Border Protection Office of Internal Affairs with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives, Kinney County Sheriff’s Office, Terrell County Sheriff’s Office and the Texas Department of Public Safety. Assistant United States Attorney Ralph Paradiso prosecuted this case on behalf of the Government.
Four Sentenced in San Antonio Hermanos Pistoleros Latinos Methamphetamine Trafficking CaseRead the Press Release
In San Antonio today, Senior U.S. District Judge David Ezra sentenced four individuals for their roles in a San Antonio methamphetamine trafficking conspiracy announced United States Attorney Robert Pitman and San Antonio Police Chief William McManus.
Judge Ezra sentenced 37-year-old Serafin Villanueva, an active member of the Hermanos Pistoleros Latinos (HPL), to 130 months in federal prison; 27-year-old James Lopez to 70 months in federal prison; 46-year-old Gilbert Guzman to 50 months in federal prison; and 26-year-old Felisha Salinas to five years of probation.
Previously, all four defendants pleaded guilty to conspiracy to distribute a controlled substance from September 2012, until January 2013. Court documents reveal that in September 2012, investigators with the San Antonio Police Department Gang and Intelligence Units began investigating the defendants and others connected to a methamphetamine distribution network operating out of the custom paint and auto body shop, A-1 Kustom.
On January 28, 2013, investigators arrested Guzman, Salinas, Lopez and Villanueva following a drug transaction and seized approximately 80 grams of methamphetamine.
In a separate, but related indictment, 41-year-old Andres Sanchez, a high ranking HPL member, was sentenced last week to 63 months in federal prison for being a convicted felon in possession of a firearm.
Assistant United States Attorney David Shearer prosecuted this case on behalf of the Government.
Former El Paso ISD Trustee Salvador "Sal" Mena Sentenced to Federal Prison in El Paso Corruption CaseRead the Press Release
In El Paso this morning, former El Paso Independent School District Trustee Salvador “Sal” Mena was sentenced to three years in federal prison for accepting more than $176,000 in cash bribes in exchange for his vote and official influence announced United States Attorney Robert Pitman and FBI Special Agent in Charge Douglas E. Lindquist, El Paso Division.
In addition to the prison term, United States District Judge Frank Montalvo ordered that Mena forfeit to the federal government $176,455 and be placed under supervised release for a period of three years after completing his prison term. Mena was remanded into federal custody following today’s hearing.
Previously, Mena pleaded guilty to conspiracy to commit mail and wire fraud, and deprivation of honest services. By pleading guilty, Mena admitted that he set up a sham consulting contract with an EPISD vendor whereby he received income, but provided no consulting services. Additionally, in exchange for his vote, support and influence for vendors, he instructed vendors seeking to do business with EPISD to make contributions to his election and re-election campaigns.
This morning, Judge Montalvo also sentenced former El Paso resident Christopher Chol-Su Pak, to three years of probation and ordered him to pay a $20,000 fine for helping former El Paso businessman Roberto “Bobby” Ruiz in carrying out his bribery scheme which focused on a $40 million El Paso County debt refinancing contract. Earlier this month, Ruiz received a two-year federal prison term and a $175,000 fine for his role in the scheme.
In sentencing Pak to a term of probation, Judge Montalvo took into consideration the Government’s recommendation regarding Pak’s sentencing based on Pak’s expeditious cooperation with the Government and minimal benefit as a result of the corrupt conduct.
“Today’s sentencing of Mr. Mena and Mr. Pak demonstrates the FBI’s unwavering commitment to target those individuals involved in public corruption in the El Paso community. Entrusted to serve the citizens of El Paso, Mena and Pak instead used their influence to promote their own personal interest,” stated FBI Special Agent in Charge Douglas E. Lindquist.
This FBI investigation has resulted in 39 federal convictions -- 36 individuals who entered guilty pleas and three individuals who were convicted by juries.
Assistant United States Attorneys Debra Kanof and Jose Luis Gonzalez prosecuted this case on behalf of the Government.
Eagle Pass Man Sentenced to Federal Prison in Bulk Cash Smuggling SchemeRead the Press Release
In Del Rio, 63-year-old Jose Luis Aguilar of Eagle Pass, TX, was sentenced to 14 months in federal prison for aiding and abetting bulk cash smuggling announced United States Attorney Robert Pitman and FBI Special Agent in Charge Armando Fernandez.
In addition to the prison term, United States District Judge Alia Moses ordered that Aguilar pay a $1,000 fine and be placed under supervised release for a period of three years after completing his prison term. On March 27, 2013, Aguilar pleaded guilty to the charge admitting that on January 4, 2011, he and co-defendant, David Gelacio, brought a total of $13,000 in U.S. Currency from Mexico through the Eagle Pass Port of Entry without declaring it to federal authorities. Aguilar also admitted that the money represented proceeds from the sale of a truck owned by a former Maverick County commissioner.
On July 8, 2013, Gelacio was sentenced to one year in federal prison with credit for time served followed by three years of supervised release after pleading guilty to the same charge.
This ongoing investigation is being conducted by the Federal Bureau of Investigation and the Texas Department of Public Safety. Assistant United States Attorney Michael Galdo is prosecuting this case on behalf of the Government.
San Antonio Man Sentenced to 95 Years in Federal Prison for Sexual Exploitation of A ChildRead the Press Release
In San Antonio this morning, United States District Judge Xavier Rodriguez sentenced 31-year-old Luis Moreno to 95 years in federal prison followed by a lifetime of supervised release for the sexual exploitation of a child announced United States Attorney Robert Pitman and Federal Bureau of Investigation Special Agent In Charge Armando Fernandez.
In August, Moreno pleaded guilty to an indictment charging him with twelve counts of production of child pornography, two counts of receipt of child pornography and two counts of possession of child pornography.
According to court records, on various occasions between April 2010 and his arrest in September 2011, Moreno used minors to engage in sexually explicit conduct for the purpose of producing visual depictions of such conduct. Testimony during today’s sentencing hearing revealed that Moreno initially used his cell phone, then when the memory was full, a children’s electronic game device to capture, store, receive and distribute hundreds of images of child pornography.
Following today’s hearing, Judge Rodriguez issued a “no contact” order prohibiting Moreno from having any contact with the victims of these offenses.
This investigation was conducted by the Federal Bureau of Investigation and investigators from the Bexar County Sheriff’s Department— both members of the San Antonio Child Exploitation Task Force. Assistant United States Attorneys Bettina Richardson and Tracy Thompson prosecuted this case on behalf of the Government.Three Strikes Drug Dealer Sentenced to Mandatory Life ImprisonmentRead the Press Release
In El Paso this morning, United States District Judge Kathleen Cardone sentenced 46-year-old habitual drug trafficker Benito Martinez, Jr., (a.k.a. “Benny”) to three concurrent life imprisonment terms on federal drug trafficking charges announced United States Attorney Robert Pitman and Drug Enforcement Administration Special Agent In Charge Joseph Arabit.
In October, a federal jury convicted Martinez of conspiracy to possess with intent to distribute five kilograms or more of cocaine and two counts of aiding and abetting the possession with the intent to distribute five kilograms or more of cocaine. Evidence presented at trial revealed that Martinez had well-established relationships with individuals in the Republic of Mexico with direct ties to a Mexico-based drug cartel operating in and around Guadalajara, Jalisco, Mexico, and was responsible for large amounts of cocaine transported from Juarez through El Paso and on to Connecticut, New York and Chicago.
At sentencing, Judge Cardone considered Martinez’s criminal history which included a five-year federal prison term beginning in 1992 for marijuana importation and a nearly 11-year federal prison term for conspiracy to possess a controlled substance with intent to distribute in 2002. According to court records, Martinez continued his drug trafficking efforts even prior to the expiration of his terms of supervised release following each prison term. Judge Cardone also ordered that Martinez pay a monetary judgment in the amount of $112,000, representing the value of a property in El Paso that Martinez used in furtherance of his drug trafficking crimes.
This Organized Crime Drug Enforcement Task Force (OCDETF) investigation was conducted by agents with the Drug Enforcement Administration along with assistance from other federal, state and local law enforcement agencies in El Paso, New York, Chicago and Connecticut.
Owner of DTS Medical Supply Company in Devine, TX, and Two Employees Charged in Connection with $3.5 Million Health Care Fraud SchemeRead the Press Release
A federal grand jury has indicted 52–year-old DTS Medical Supply Company owner Daniel Thomason Smith and two employees, in connection with an estimated $3.5 million Health Care Fraud scheme announced United States Attorney Robert Pitman, FBI Special Agent in Charge Armando Fernandez and Texas Attorney General Greg Abbott.
A 21-count indictment returned yesterday in San Antonio charges Smith; 42-year-old DTS office manager Kathleen Marina Kelly-Tuorila of Devine, TX, and 57–year-old Robin Renee Haigler of Waco, TX, with one count of conspiracy to commit Health Care Fraud, one count of aiding and abetting Health Care Fraud, eleven counts of aiding and abetting aggravated identity theft and eight counts of aiding and abetting false statements related to a Health Care matter.
According to the indictment, both Medicare and Medicaid provide qualified beneficiaries with financial remuneration for the purchase of prescribed and necessary medical equipment. Such medical equipment would include powered wheelchairs, powered scooters and accessories related to those two devices. Medicare and Medicaid set a rate of compensation for each of these devices and the rate of compensation differed between devices and was to be based on the type of device that was prescribed for the beneficiary and delivered to the beneficiary.
The indictment alleges that between May 2006 and January 2010, the defendants conspired to submit numerous false and fraudulent benefit claims to Medicaid and Medicare seeking compensation for powered wheelchairs. Smith employed Haigler on a commission basis to recruit customers primarily in the Waco area. At Smith’s direction, Haigler filled out benefit claims for customers that contained false information, including fraudulent prescriptions which she oftentimes generated, and then forwarded those claims to Kelly-Tuorila for submission to Medicaid and Medicare for reimbursement. Haigler would then arrange to deliver a “power scooter,” an item which has a lower Medicaid/Medicare reimbursable rate, to customers instead of the powered wheelchair that Medicaid and Medicare were billed for. This resulted in a larger payment from Medicaid/Medicare and a larger percentage of profit for DTS and Smith.
Upon conviction, the defendants face up to ten years imprisonment on the conspiracy count; up to ten years imprisonment on the aiding and abetting Health Care Fraud count; up to two years in federal prison for each aggravated identity theft count; and, up to five years in federal prison for each false statement count.
This indictment resulted from an investigation conducted by the agents with the Federal Bureau of Investigation together with investigators from the Texas Medicaid Fraud Control Unit. Assistant United States Attorney Greg Surovic is prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Oklahoma Man Pleads Guilty to Role in Lee Michaels Jewelry Store HeistRead the Press Release
In San Antonio, 45-year-old Johnny Kirk of Oklahoma City, OK, admitted to his role in the March 2010 robbery of the Lee Michaels Jewelry Store announced United States Attorney Robert Pitman and FBI Special Agent In Charge Armando Fernandez, San Antonio Division and San Antonio Police Chief William McManus.
Appearing before United States Magistrate Judge Pamela Mathy this morning, Kirk pleaded guilty to one count of aiding and abetting the transportation of stolen goods and one count of aiding and abetting the interference with commerce by threats and violence. Kirk remains in federal custody pending sentencing which is scheduled for 9:30am on March 3, 2014, before Senior United States District Judge David Ezra.
By pleading guilty, Kirk admitted that on March 24, 2010, he robbed the Lee Michaels Jewelry Store located in North Star Mall in San Antonio in which an estimated $2.3 million worth of merchandise was stolen.
On October 7, 2013, 47-year-old co-defendant Marvin Steel of Oklahoma City was sentenced to 20 years in federal prison and ordered to pay $1,174,134 restitution after pleading guilty to one count each of aiding and abetting the transportation of stolen goods, aiding and abetting the interference with commerce by threats and violence, and aiding and abetting the use and carrying of a firearm during a crime of violence.
Several months following the robbery, the investigation turned to Oklahoma when a Rolex watch stolen during the heist was sold. Authorities subsequently executed several search warrants in Oklahoma, including a search warrant at Marvin Steele’s residence and a search warrant at the residence of Marvin Steele’s brother. Agents recovered Rolex watches and various pieces of jewelry, valued at approximately $800,000, stolen from Lee Michaels Jewelry Store in San Antonio as well as a blue laundry bag identical to those used during the robbery.
This investigation was conducted by the FBI/SAPD Safe Streets Task Force along with the Oklahoma FBI and the SAPD Robbery Unit. Assistant United States Attorneys Tom Moore and Michael Hardy are prosecuting this case on behalf of the Government.
Houston Man Admits to $350,000 Auto Loan SchemeRead the Press Release
In San Antonio, 48-year-old Pierre Koutani of Houston, TX, faces up to five years in federal prison after pleading guilty this afternoon to making a false statement to a financial institution in relation to a $350,000 auto loan scheme announced United States Attorney Robert Pitman and FBI Special Agent In Charge Armando Fernandez, San Antonio Division.
By pleading guilty, Koutani admitted that in July 2010, he obtained nine car loans totaling $350,368 utilizing false and fraudulent employment information. According to court records, Koutani falsely claimed he had been a long-time account manager for a Houston-based mortgage company earning between $11,000 and $12,000 a month. Koutani sold many of the vehicles he obtained loans for to unsuspecting purchasers without disclosing the bank liens. Koutani defaulted on all but one of the loans.
Koutani remains on bond pending sentencing which is scheduled for March 5, 2014, before United States District Judge Xavier Rodriguez.
This investigation was conducted by agents with the Federal Bureau of Investigation. Assistant United States Attorney Tom Moore prosecuted this case on behalf of the Government.
Four Gang Members Arrested in Gonzales on Federal ChargesRead the Press Release
Today, federal and local authorities arrested four gang members in Gonzales, TX, based on grand jury indictments returned on Wednesday alleging federal drug and firearms violations announced United States Attorney Robert Pitman, ATF Special Agent in Charge Robert Elder, Houston Division, and Gonzales Police Chief Tim Crow.
Those arrested based on federal grand jury indictments unsealed today include:
- 28-year-old Randon Romero, believed to be affiliated with the Texas Mexican Mafia, charged with one count each of felon in possession of a firearm or ammunition, carrying firearms during and in relation to a drug trafficking crime, and possession with intent to distribute methamphetamine;
- 33-year-old Tyrone Stovall, believed to be a member of the Bloods gang, charged with one count each of felon in possession of a firearm or ammunition, carrying firearms during and in relation to a drug trafficking crime, and possession with intent to distribute crack cocaine;
- 33-year-old Mario Banda, believed to be a member of the Texas Syndicate, charged with one count of possession with intent to distribute methamphetamine; and,
- 28-year-old Roman Gabriel Luna, believed to be a member of the Texas Syndicate, charged with one count each of felon in possession of a firearm or ammunition and possession with intent to distribute methamphetamine.
“One of the best ways that federal authorities can effectively partner with local law enforcement is to use our resources to help remove violent and repeat offenders from the community for longer periods of time,” stated United States Attorney Robert Pitman.
Upon conviction, felon in possession of a firearm or ammunition calls for a maximum ten years imprisonment; carrying a firearm during a drug trafficking crime, a mandatory consecutive minimum of five years imprisonment; and, possession with intent to distribute a controlled substance, up to 20 years imprisonment.
All four defendants are scheduled to make their Initial Appearances at 3:00pm today before United States Magistrate Judge Henry J. Bemporad in San Antonio.
These charges resulted from an investigation conducted by the agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) together with investigators from the Gonzales Police Department. Assistant United States Attorney Sarah Wannarka is prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
El Paso Man Sentenced to Federal Prison for Downloading Child PornRead the Press Release
In El Paso, 33-year-old Thomas Daly, a former machine operator for a local food producer, was sentenced to 188 months in federal prison followed by ten years of supervised release for downloading child pornography announced United States Attorney Robert Pitman and Homeland Security Investigations Special Agent in Charge Dennis Ulrich, El Paso Division.
In September 2012, a routine information technology inspection revealed that Daly was downloading and viewing child pornography over the internet using peer-to-peer file sharing networks. A subsequent search warrant executed by HSI agents at the defendant’s residence resulted in the seizure of two computers and various DVDs, CDs, and VHS cassettes. A forensics examination of those items revealed the presence of almost 500 videos and more than 33,000 images depicting child pornography. On September 10, 2013, Daly pleaded guilty to one count of receipt of child pornography.This investigation was conducted by Homeland Security Investigations in El Paso. Assistant United States Attorney Ian Martinez Hanna prosecuted this case on behalf of the government.
Eagle Pass Businessman Pleads Guilty to Role in Maverick County Bribery, Kickback and Bid-Rigging SchemeRead the Press Release
In Del Rio, 52-year-old Salvador Castillon, owner of South Texas Concrete based in Eagle Pass, pleaded guilty to paying bribes to a Maverick County commissioner in order to secure county construction contracts announced United States Attorney Robert Pitman and FBI Special Agent in Charge Armando Fernandez.
Appearing before U.S. District Judge Alia Moses, Castillon pleaded guilty to one count of paying a bribe to an agent of an organization receiving federal funds. According to court records, Castillon was awarded Maverick County construction contracts totaling $416,800 in 2010 and $148,000 in 2011. Castillon admitted that during that time period, he paid the Maverick County Precinct 2 commissioner approximately $57,000 in return for being awarded the construction contracts.
Castillon, who remains on bond pending sentencing, faces up to ten years in federal prison and a maximum $250,000 fine. Sentencing is scheduled for 9:00am on May 12, 2014, before Judge Moses in Del Rio.This ongoing 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 Michael Galdo is prosecuting this case on behalf of the Government.