Western District of Texas
Press releases recorded for this federal judicial district.
Alabama Man Pleads Guilty in Connection with 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
David Steiner, a 39–year-old Vinegar Bend, AL, resident faces 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.
Appearing before United States Magistrate Judge Collis White in Del Rio this morning, 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, Texas, during an attempt to avoid potential detention after fleeing from a traffic stop near Comstock, Texas.
As a result of Steiner’s actions, the agents were forced to drive off the paved roadway to avoid being struck by Steiner. Agents gave chase and the pursuit continued toward Sanderson, Texas. The pursuit ended when Steiner hit an oncoming vehicle killing two occupants and gravely injuring the driver.
Steiner, who has remained in custody since his arrest, is scheduled to be sentenced at 9:00am on December 17, 2013, before United States District Judge Alia Moses.
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 is prosecuting this case on behalf of the Government.
Former San Antonio Police Officer Pleads Guilty to Being A Convicted Felon in Possession of A FirearmRead the Press Release
Jack Nealy, a former San Antonio Police officer, now faces up to ten years in federal prison after pleading guilty to being a convicted felon in possession of a firearm, announced United States Attorney Robert Pitman and ATF Special Agent in Charge Melvin D. King, Houston Division.
Appearing before U.S. Magistrate Judge Pamela Mathy yesterday afternoon, Nealy, who was convicted in federal court in the Western District of Texas of bank robbery in 1993 and served a sentence of 121 months imprisonment, admitted that in November 2011, he was in possession of a .40 caliber pistol and was wearing a replica United States Department of State badge, when he was apprehended in the parking lot of a San Antonio nightclub.
Nealy, who remains in federal custody, is scheduled to be sentenced on October 24, 2013, before U.S. District Judge Orlando Garcia in San Antonio.
This investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives together with the San Antonio Police Department and the U.S. Diplomatic Security Service.
Former San Antonio City Employee Indicted by Federal Grand Jury in Connection with A Bribery/Money Laundering SchemeRead the Press Release
A federal grand jury in San Antonio has returned an indictment charging a former City of San Antonio employee in connection with a bribery scheme announced United States Attorney Robert Pitman and FBI Special Agent in Charge Armando Fernandez.
The three-count indictment, returned late yesterday, charges 49-year-old Oscar Gilberto Rodriguez of San Antonio with one count of paying a bribe concerning a program receiving federal funds and 35-year-old Irene Avina Morales of San Antonio with one count of receiving a bribe concerning a program receiving federal funds and one count of money laundering.
According to the indictment, between June 2008 and August 2009, Rodriguez paid Morales, an employee in the city’s Neighborhood Service Department $5,100 in an effort to secure a $26,040 contract with the city to clean up a lot on Maridel Avenue. The indictment further alleges that in September 2008, Morales conducted a financial transaction designed to conceal and disguise the nature of the bribe money.
Upon conviction, the defendants face up to 10 years imprisonment on the bribery related count. Morales is also subject to a maximum 20 years in federal prison upon conviction of the money laundering count.
This indictment resulted from an investigation conducted by the agents with the Federal Bureau of Investigation. Assistant United States Attorney James Blankinship is prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Federal Grand Jury in San Antonio Indicts Three in Fraudulent U.S. Army Contracts SchemesRead the Press Release
A federal grand jury in San Antonio has returned an indictment charging two San Antonio area men and a Manhattan, KS, woman for their roles in a scheme to defraud the United States in connection with contracts worth millions of dollars’ for medical equipment and personnel training announced United States Attorney Robert Pitman.
The 40-count indictment, returned late yesterday, charges 42-year-old Lawrence Peter Fenti of New Braunfels, TX, 50-year-old Heidi Lynn Webster and 43-year-old John Walter Hoffman, owner/operator of Hoffman Surgical Devices, Inc. in San Antonio, with one count of conspiracy to commit wire fraud. Fenti is also charged with seven counts of bribery, seven counts of wire fraud, seven counts of making false statements to U.S. Army authorities, five counts of money laundering, four counts of making false claims against the U.S., four counts of participating in a government matter affecting personal interest and one count of impersonation of a U.S. Army officer. Webster is also charged with seven counts of bribery, seven counts of wire fraud, four counts of making false claims against the U.S., and four counts of participating in a government matter affecting personal interest. Hoffman is also charged with five counts of money laundering, two counts of wire fraud and two counts of making false statements to U.S. Army authorities.
According to the indictment, Fenti was a non-commissioned officer trained as a technician who worked in the radiology departments of various Army medical facilities including Irwin Army Medical Center at Fort Riley, KS, and Brooks Army Medical Center (BAMC) at Fort Sam Houston in San Antonio. In 2008, Fenti was selected as the non-commissioned officer in charge of Base Realignment and Closure issues for BAMC radiology. From 1995 until 2006, Webster was an Army officer physician specializing in radiology at BAMC and Irwin. In 2006, Webster was discharged from the Army but continued to work under a contract with the Army to provide radiology services at Irwin. In 2007 and 2008, Webster formed two KS corporations—MRI Resources, Inc. and Pro Veteran Staffing, Inc. Data Dynamics Inc. was a Grafton, ND, company engaged in the business of transcribing medical records. It was certified by the Small Business Administration as owned by a socially and economically disadvantaged person and was eligible to obtain certain federal contracts with, or with limited, competition.
The indictment alleges that since 2007, the defendants schemed to secure multiple Army contracts and sub-contracts for radiology equipment and services by using their positions of influence, taking advantage of Data Dynamics’ 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.
Once contracts were secured by a prime contractor, typically by Data Dynamics, the defendants allegedly stole money from the Army by causing the prime contractor to overcharge the Army and then submitted substantially overinflated invoices from MRI Resources or Pro Veteran Staffing to prime contractors, allowing the defendants’ companies to collect monies that had not been earned.
Upon conviction, defendants face up to 20 years imprisonment for each bribery, money laundering and wire fraud count; up to five years imprisonment for each conspiracy, false statement and false claim count; and, up to three years imprisonment for the impersonation of a U.S. Army officer. The indictment also seeks a monetary judgment against Webster in the amount of $613,828 and Fenti in the amount of $542,485.35, representing the amount of proceeds obtained directly or indirectly as a result of their fraudulent scheme.
This indictment resulted from an investigation conducted by the U.S. Army Criminal Investigations Division. Assistant United States Attorney James Blankinship 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.
San Antonio Man Indicted for Allegedly Shooting Common-Law Wife on Fort Sam Houston Faces New Charge of Conspiracy to Kill A WitnessRead the Press Release
A San Antonio man who is currently under federal indictment for allegedly shooting his common-law wife multiple times on Fort Sam Houston last month faces a new charge of conspiracy to kill a witness to prevent testimony and in retaliation for providing information to law enforcement announced United States Attorney Robert Pitman and Federal Bureau of Investigation San Antonio Division Special Agent in Charge Armando Fernandez.
A federal criminal complaint filed this morning against 51–year-old Alvin Leon Roundtree alleges that from June 26, 2013 until July 7, 2013, Roundtree conspired with his nephew, 28-year-old Leonard Roundtree, Jr., of Richardson, TX, to hire an individual to kill Alvin Roundtree’s common-law wife. According to the complaint, in recordings of multiple telephone calls placed by Alvin Roundtree from the GEO federal jail facility to Leonard Roundtree, Alvin told Leonard that he was going to pay an individual $10,000 to kill his common-law wife to prevent her from testifying against him in his upcoming trial and for providing information to investigators about the June 10, 2013, shooting incident. According to the complaint, Leonard Roundtree agreed to deliver a pre-payment of $1,000 to the individual solicited to commit the murder plus $9,000 more after the murder was carried out.
Leonard Roundtree was arrested yesterday in Richardson, TX. He had his initial appearance in federal court in Dallas earlier today where he waived his detention hearing and agreed to be transferred to the Western District of Texas for further court proceedings. Upon conviction of the conspiracy to kill charge, each defendant faces up to life in federal prison.
This case is being investigated by the Federal Bureau of Investigation (FBI) and the United States Marshals Service together with the U.S. Army Criminal Investigation Division and the San Antonio Police Department. Assistant United States Attorney Bettina Richardson is prosecuting this case on behalf of the Government.
A criminal complaint is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
Texas Syndicate Members Convicted in Federal Court in Del RioRead the Press Release
In Del Rio, three Texas Syndicate members from Uvalde, TX, face up to life in federal prison after a federal jury convicted them last night of various violations of federal racketeering offenses committed in Uvalde, San Antonio and the surrounding areas announced United States Attorney Robert Pitman.
Jurors convicted 38-year-old Raul “Fatboy” Rodriquez, 37-year-old Mike “Big Mike” Cassiano and 35-year-old Cristobal “Little Cris” Velasquez of conspiracy to violate the Racketeering Influenced Corrupt Organization (RICO) statute. Evidence presented during the trial revealed that Rodriquez, Cassiano and Velasquez, along with eleven other Texas Syndicate members and associates, conspired since 2002 to commit three murders, one attempted murder, extortion, plus distribution of controlled substances.
In addition to the conspiracy charge, jurors convicted:
- Rodriquez of a violent crime in aid of racketeering, namely the murder of Rogelio Mata in Uvalde, Texas on October 13, 2002, for allegedly failing to follow the rules of the Texas Syndicate;
- Velasquez of conspiracy to commit violent crime in aid of racketeering and the substantive charge of violent crime in aid of racketeering for the murder of Jose Guadalupe de la Garza on December 25, 2005, in Uvalde, Texas for allegedly disrespecting the Texas Syndicate as well as conspiracy to commit robbery in violation of the RICO statute; and,
- Cassiano, who previously held a leadership role in the criminal organization in 2005, of two counts of conspiracy to commit violent crime in aid of racketeering for the Jose Guadalupe de la Garza murder and the November 9, 2009, murder of Jesse James Polanco in Uvalde. Mr. Polanco was murdered because it was suspected he was cooperating with law enforcement.
The following 11 co-defendants are awaiting sentencing after pleading guilty prior to trial to violating the RICO statute: Sotero Rodriguez Martinez (a.k.a. “June”) of Uvalde; Chuco Mario Martinez (a.k.a. “Mariachi”) of Uvalde; Jose Andres Torres (a.k.a “Yogi”) of Uvalde; Larry Munoz, Jr. (a.k.a. “Little Larry”) of Uvalde; Brian Esparza (a.k.a. “Tata”) of Uvalde; Charles Esparza (a.k.a. “Horse”) of Uvalde; Ervey Sanchez (a.k.a. “Mad Max”) of Uvalde; Inez Mata (a.k.a. “Bebito”) of Uvalde; Mark Anthony Vela of Hondo, Texas; Mario Alberto Gonzales (a.k.a. “The Enforcer”) of Hondo; and, Charles Olan Quintanilla of Hondo.
In a separate, but related matter, on June 20, 2013, a federal jury in Del Rio returned guilty verdicts against Eli Torres and Alfredo Tapia III, the last two defendants involved in a narcotics distribution ring operating in Hondo, Uvalde, San Antonio and the surrounding areas. This narcotics distribution ring was connected to and associated with the Texas Syndicate prison gang.
Jurors convicted 37-year-old Eli Torres of Uvalde of conspiracy to possess with the intent to distribute 500 grams or more of cocaine from August 1, 2009, until September 28, 2011. Evidence presented at trial revealed that Torres, as a member of the Texas Syndicate, participated in this drug distribution ring by using the organization’s drug distribution connections to aid him in obtaining cocaine to sell on the streets of Uvalde. Torres faces between ten years and life in federal prison for this conviction. Torres was also found guilty of possession with the intent to distribute 500 grams or more of cocaine within 1,000 feet of the Sacred Heart Parish School in Uvalde. As a result, he faces between five and 80 years in prison for this conviction. Torres, who remains in federal custody, awaits sentencing scheduled for December 16, 2013.
Jurors also convicted 42-year-old Alfredo “Naco” Tapia, III, of conspiracy to possess with the intent to distribute 500 grams or more of cocaine from August 1, 2009, until September 28, 2011. He was also found guilty of conspiracy to possess with the intent to distribute 100 kilograms or more of marijuana from August 1, 2009 until September 28, 2011. Tapia faces between five and 40 years in federal prison for each conviction. Evidence presented at trial revealed that Tapia was associated with members of the Texas Syndicate prison gang and facilitated their distribution of cocaine and marijuana.
The other members of the conspiracy listed below are all awaiting sentencing after entering guilty pleas prior to trial. They include: Jose Alberto Ruiz (a.k.a. “Spike”), of Uvalde; Calletano Nira (a.k.a. “Cat) of Hondo; Joshua Leonard Benavides of Hondo; Ted Benavides (a.k.a. “TJ”) of Hondo; Jessica Escareno of Hondo; Ruben Dominguez of Hondo; Sandra Torres of Uvalde; Jaime Corona, Jr., of Hondo; John Khosravi of San Antonio; and, former Bandera County Sheriff’s Deputy Thomas Cuellar of Hondo. On April 2, 2013, Cuellar pleaded guilty to one count of unlawful use of a government computer and one count of possession with intent to distribute cocaine. By pleading guilty, Cuellar admitted that on August 31, 2010, he unlawfully accessed a department computer in order to obtain law enforcement information regarding co-conspirators. As a result, Cuellar faces up to twenty years in federal prison on the drug charge and up to five years in federal prison on the unlawful access charge. Only Cuellar and Sandra Torres are currently on bond pending sentencing; all other defendants remain in federal custody.
These prosecutions resulted from a joint investigation by the Federal Bureau of Investigation with the Texas Department of Public Safety--Criminal Investigations Division, San Antonio Police Department, Medina County Sheriff’s Office and the Bandera County Sheriff’s Office. Also assisting in the investigation was the 38th Judicial District Adult Probation Gang Unit, Texas Department of Criminal Justice and the U.S. Bureau of Prisons. The U.S. Marshals Service, U.S. Immigration and Customs Enforcement-Customs and Border Protection and the Uvalde County Sheriff’s Department assisted in making the arrests. These cases were prosecuted by Assistant United States Attorneys Erica Giese, Ralph Paradiso and Patrick Burke.
Operation Stolen Dreams Defendant Sentenced to Federal Prison for Role in Mortgage Fraud SchemeRead the Press Release
In San Antonio, 46-year-old Robert Brooks, of Lantana, TX, was sentenced to 135 months in federal prison followed by five years of supervised release and ordered to pay approximately $8.5 million restitution for his role in a mortgage fraud operation involving a series of “property flip” schemes announced United States Attorney Robert Pitman; Armando Fernandez, Special Agent in Charge of the Federal Bureau of Investigation, San Antonio Division; and, Steve McCullough, Special Agent in Charge of the Internal Revenue Service-Criminal Investigation in San Antonio.
On January 29, 2013, a federal jury convicted Brooks of one count of conspiring to commit bank, wire and mail fraud, eight counts of mail fraud and two counts of aiding the filing of false income tax returns.
Evidence presented during trial revealed that 20 individuals, under the direction of Robert Brooks, participated in a mortgage fraud scheme from May 17, 2005, until February 21, 2008, whereby Brooks purchased properties at fair market value then resold at an artificially inflated price to straw purchasers. Brooks recruited his co-defendants–appraisers, loan processors, title company employees, straw purchasers, etc.–and provided them with kickbacks from loan proceeds for their participation in the scheme. Evidence also revealed that Brooks used the proceeds from the purported sales to various nominees to pay for his initial purchase of real estate, to pay closing costs for both his purchase and sale to the nominee, to pay the nominee’s down-payment, to pay the nominee for the nominee’s participation, and to pay the mortgage for the first 12 months, after which each mortgage went into default. Brooks’ mortgage loan scheme involved over 40 properties primarily located in the Dallas area and defrauded financial institutions in Dallas, Austin, San Antonio and Houston of over $20 million. Jurors also found that Brooks caused the submission of false 2007 income tax returns for himself and his wife, and for a partnership, which contained a false business expense.
Brooks is the only defendant in this case to be sentenced; 14 are awaiting sentencing after entering guilty pleas; and, seven are still pending trial. This case resulted from an investigation by agents from the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation. Assistant United States Attorney William R. Harris is prosecuting this case on behalf of the government.
Operation Stolen Dreams was organized by President Obama’s interagency Financial Fraud Enforcement Task Force, which was established to lead an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes. For more information on the task force, visit StopFraud.gov.
Operation Synergy Results in 18 Arrested for Synthetic Cannabinoid Distribution Operations in Austin and San AntonioRead the Press Release
Federal, state and local authorities have arrested 18 individuals, including the operator of three locations of Kash Tobacco & Novelties in Austin as well as the owner of the Best Foods #2 convenience store and Hang Ten Smoke Shop in San Antonio, for their roles in synthetic cannabinoid distribution operations announced United States Attorney Robert Pitman, Drug Enforcement Administration Special Agent in Charge Javier Pena, Houston Division, and Federal Bureau of Investigation Special Agent in Charge Armando Fernandez, San Antonio Division. In addition to the arrests, authorities in the Western District of Texas have seized thousands of packages containing synthetic marijuana, cash, and an assortment of materials used to manufacture synthetic cannabinoids.
U.S. Attorney Pitman noted that these arrests based on federal charges represent a major step by federal, state and local law enforcement agencies to address the emerging problem of designer drugs in our communities before it becomes a significant law enforcement and public health hazard as it has become in other communities. “Let me be clear about this. This is not marijuana. These are chemical substances that are, to the user, completely unknown and that pose potentially serious health risks. There have been reports in our own community of people, especially young people, who have had potentially serious health effects from their use,” stated U.S. Attorney Pitman. He added, “To the owners and operators of convenience stores and smoke shops who sell illegal designer drugs, we are here to tell you that this is just the beginning of our effort to enforce the law with respect to the sale of these potentially dangerous substances. To people in the community who think that designer drugs are a safe and legal option, we hope that this will provoke an understanding not just that they are illegal, but that you are playing a game of Russian roulette when you put these unregulated and unknown chemicals into your body.”
In Austin, a five-count federal grand jury indictment, returned on June 18, 2013, and unsealed today, charges six Austin area residents with one count of conspiracy to possess with intent to distribute synthetic cannabinoids. Those six include Austin residents 45-year-old Zikar R. Ali, operator of three Kash Tobacco & Novelties in Austin; 43-year-old Mehdi Rahim Ali; 41-year-old Karim Rahim Ali ; 36-year-old Syed Ali; and; as well as Round Rock residents 40-year-old Aziz Velani and 20-year-old Azeem Choudhary. In addition, Mehdi Ali, Karim Ali, Syed Ali and Zikar Ali each face two counts of possession with intent to distribute synthetic cannabinoids while Velani and Choudhary each face one count of possession with intent to distribute synthetic cannabinoids.
“Today, the Drug Enforcement Administration and its counterparts caused a significant blow to those who allegedly distribute, operate or manufacture ‘synthetic’ or ‘designer drugs’,” said DEA Special Agent in Charge Javier Peña. “These illegal, dangerous and deadly concoctions are designed, marketed and sold to our youth under catchy names and colorful packaging; all in an effort to outwit the law. Today’s operation should put would-be traffickers on alert that DEA and its counterparts will not tolerate any type of illegal controlled substances to be distributed in our communities,” SAC Peña added.
In San Antonio, a criminal complaint was filed today against 19 individuals--12 of whom were arrested today-- charging them with one count of conspiracy to possess with intent to distribute synthetic cannabinoids. A list of the defendants is attached. According to the complaint, the defendants are responsible for the production and distribution of synthetic marijuana and bath salts in San Antonio, Houston, Austin, Dallas and Laredo as well as Tulsa and Oklahoma City, OK.
“These arrests demonstrate the FBI’s steadfast commitment to protecting the community by working long-term, joint investigations aimed at dismantling criminal organizations. The drug targeted during these investigations, synthetic marijuana, is of particular concern to the FBI and our law enforcement partners since it is specifically designed and marketed to deceive the user of its lethality, and is often targeted at those who are most vulnerable in our society; young adults, teenagers and children,” stated Federal Bureau of Investigation Special Agent in Charge Armando Fernandez, San Antonio Division.
Synthetic cannabinoids, also known as synthetic marijuana, “Spice,” “K2,” or “Kush,” comprise a large family of chemically unrelated structures functionally similar to THC, the primary psychoactive ingredient in organic marijuana. When ingested, synthetic cannabinoids produce psychoactive effects that are similar to the effects of THC, but often with pronounced and dangerous side-effects.
Synthetic cannabinoid products consist of organic plant matter that is sprayed with a mixture of acetone and synthetic cannabinoid chemical compounds. These chemicals are unregulated, often produced in China, and imported to the United States where they are then applied to organic plant matter to render them ingestible by smoking. Generally, the product is packaged in foil baggies which falsely state that the product is “herbal incense” and “not for human consumption” in an attempt to avoid prosecution. The product may be sold in brick and mortar “smoke shops,” convenience stores, adult book stores, as well as, over the Internet. Synthetic cannabinoid products are marketed under many different brand names, including those mentioned above, as well as, “Scooby Snax,” “Paradise,” “Mad Monkey,” “Sexy Monkey,” and “Devil Eye,”These are chemical substances that are, to the user, completely unknown and that pose potentially serious health risks. For example, from January 1, 2010 through February 28, 2013, the Texas Poison Center Network reported receiving 1,627 calls about exposure to synthetic cannabinoids and that some individuals exposed experienced symptoms to include agitation, tachycardia, elevated blood pressure, vomiting, hallucinations and confusion.
Upon conviction, the defendants face up to 20 years in federal prison and a maximum $250,000 fine per count. An indictment or a criminal complaint is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
These investigations resulted from the efforts of the Drug Enforcement Administration and the Federal Bureau of Investigation together with the Internal Revenue Service-Criminal Investigation, Immigration and Customs Enforcement - Homeland Security Investigations, U.S. Border Patrol, Austin, San Antonio and New Braunfels Police Departments, the Texas Department of Public Safety, Texas Attorney General’s Office, Travis County District Attorney’s Office, Travis County Sheriff’s Office, Williamson County Sheriff’s Office, Williamson County Constables Office-Precinct 2, Bastrop County Sheriff’s Office, Live Oak Police Department and the Texas Alcoholic Beverage Commission. ICE Enforcement and Removal Operations also assisted with today’s arrests. Assistant United States Attorney’s Mark Marshall and Chris Peele are prosecuting the Austin case; Mark Roomberg and Jay Hulings, the San Antonio case.
Federal Grand Jury Indicts Two in Marijuana Trafficking InvestigationRead the Press Release
Investigation stems from an abandoned marijuana load discovered on Van Horn school bus last year
In Alpine, two men face federal drug trafficking charges related to the discovery of more than 480 pounds of marijuana on a Van Horn ISD school bus last year announced United States Attorney Robert Pitman and DEA-El Paso Division Special Agent in Charge Joseph M. Arabit.
A two-count federal grand jury indictment, returned Tuesday in Pecos, TX, and unsealed following their arrests yesterday, charges 22–year-old Anthony Paredez-Juarez of Odessa, TX, and 20–year-old George Jacob Cosme-Baird of Presidio, TX, with one count of attempted possession of between 100 kilograms and 1,000 kilograms of marijuana and one count of possession with intent to distribute between 100 kilograms and 1,000 kilograms of marijuana within 1,000 feet of a school, namely Presidio High School.
The indictment stems from an investigation resulting from a marijuana seizure on November 19, 2012, at a convenience store in Marfa, TX. Earlier in the day, the school bus was used to transport students from Van Horn to Presidio, TX, for a basketball game and was now en route back to Van Horn. According to authorities, the bus driver alerted U.S. Border Patrol agents, who were also at the convenience store, when he noticed several duffle bags in the bay area of the bus which not there when they departed Van Horn. The agents took possession of the duffle bags after discovering the marijuana inside.
“This case involved a particularly brazen act of using a school bus and students as cover for a drug load. These arrests and federal charges should send a message that law enforcement agencies will work together to ensure that persons involved in this type of activity are brought to justice, especially when the safety of our children is concerned. This case also shows the importance of the cooperation we receive from vigilant and honest citizens, without whose assistance we could not do our jobs,” stated DEA-El Paso Division Special Agent in Charge Joseph M. Arabit.
Upon conviction, each defendant faces a minimum of five years in federal prison per count. The statutory maximum sentence for conviction of the school zone related drug charge is 80 years incarceration and a $10 million fine. The statutory maximum sentence for conviction of the other drug charge is 40 years incarceration and a $5 million fine. Both defendants remain in federal custody pending the outcome of a detention hearing scheduled for 9:30am on June 19, 2013, before U.S. Magistrate Judge B. Dwight Goains in Alpine, TX.
This indictment resulted from an investigation conducted by the Drug Enforcement Administration (Alpine) together with the U.S. Border Patrol, Homeland Security Investigations (HSI-Alpine) and the Texas Department of Public Safety Narcotics Division (Alpine). Assistant United States Attorney James J. Miller, Jr., is prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Eagle Pass Businessman Indicted in Connection with Maverick County Bribery, Kickback and Bid-Rigging SchemeRead the Press Release
In Eagle Pass last night, Federal Bureau of Investigation agents along with Texas Department Public Safety investigators arrested 52-year-old Salvador Castillon, owner of South Texas Concrete based in Eagle Pass, in connection with an alleged bribery, kickback and bid-rigging scheme announced United States Attorney Robert Pitman and FBI Special Agent in Charge Armando Fernandez.
A federal grand jury indictment, returned yesterday and unsealed this morning, charges Castillon with two counts of paying a bribe to an agent of an organization receiving federal funds. According to the indictment, Castillon was awarded Maverick County construction contracts totaling $416,800 in 2010 and $148,000 in 2011. The indictment alleges that in exchange for each Maverick County construction contract he was awarded, Castillon agreed to pay a Maverick County commissioner between $3,000 and $5,000.
Upon conviction, Castillon faces up to ten years in federal prison and a maximum $250,000 fine per count.
Castillon appeared before U.S. Magistrate Judge Collis White in Del Rio this morning for his initial appearance. Judge White ordered that Castillon remain in custody pending the outcome of a detention hearing scheduled for 9:00am on Monday, June 17, 2013.
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.
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 Maverick County Solid Waste Authority General Manager Hector Chavez and Maverick County Contractor Jose Telles Enter Guilty PleasRead the Press Release
Former Maverick County Solid Waste Authority general manager and chief executive officer of the Maverick County landfill Hector Chavez, Jr., faces up to ten years in federal prison, a fine of up to $250,000 and restitution to the County after pleading guilty to theft concerning programs receiving federal funds announced United States Attorney Robert Pitman and FBI Special Agent in Charge Armando Fernandez.
Appearing before U.S. Magistrate Judge Victor Garcia this morning in Del Rio, Chavez admitted that from March 9, 2012, to December 28, 2012, he pocketed over $62,000 in forged Maverick County checks he drafted himself.
Also this morning before Judge Garcia, general contractor Jose Telles, Jr., of Eagle Pass, TX, pleaded guilty to paying a bribe to an agent of an organization receiving federal funds. As a result of his plea, Telles faces up to ten years in federal prison and a fine of up to $250,000. By pleading guilty, Telles admitted that in 2010, he paid a $5,000 bribe to a Maverick County commissioner after being awarded an approximate $30,000 construction contract with Maverick County.
Telles is scheduled to be sentenced on December 9, 2013, before U.S. District Judge Alia Moses in Del Rio; Chavez, September 17, 2013, before U.S. District Judge David A. Ezra in Del Rio.
To date, 12 individuals have pleaded guilty to federal charges and await sentencing in connection with this investigation. 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 these cases on behalf of the Government.
San Antonio Man Charged with Domestic Violence Violation for Allegedly Shooting Common-Law Wife on Fort Sam HoustonRead the Press Release
This morning in San Antonio, a federal criminal complaint was filed against 51–year-old Alvin Leon Roundtree of San Antonio alleging domestic violence on Fort Sam Houston announced United States Attorney Robert Pitman, Federal Bureau of Investigation San Antonio Division Special Agent in Charge Armando Fernandez and San Antonio Police Chief William McManus.
According to the criminal complaint, yesterday afternoon Roundtree approached his common-law wife in the A Medical Center and School on Fort Sam Houston to discuss their recent separation. The complaint alleges that after a verbal altercation regarding her decision to leave the defendant, Roundtree pulled out a .45 caliber pistol and shot his common-law wife multiple times.
Authorities subsequently apprehended Roundtree on Fort Sam Houston and recovered the firearm believed to have been used by the defendant to commit the offense. The victim, who according to the criminal complaint identified Roundtree as her assailant, remains in stable condition following surgery at San Antonio Military Medical Center.
Roundtree, who had his Initial Appearance in federal court this morning, remains in federal custody pending a detention hearing at 3:30pm on Thursday before United States Magistrate Judge John Promomo. Upon conviction, Roundtree faces up to 20 years in federal prison and a maximum $250,000 fine.
This case is being investigated by the Federal Bureau of Investigation (FBI) together with the U.S. Army Criminal Investigation Division and the San Antonio Police Department. Assistant United States Attorney Bettina Richardson is prosecuting this case on behalf of the Government.
A criminal complaint is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
Former Maverick County Commissioner Rodolfo Bainet Heredia Enters Guilty Plea in Connection with A Bribery, Kickback and Bid-Rigging SchemeRead the Press Release
In Del Rio this afternoon, former Maverick County Precinct Two Commissioner Rodolfo Bainet Heredia, age 54, of Eagle Pass, Texas, pleaded guilty to federal charges in connection with an alleged bribery, kickback and bid-rigging scheme, announced United States Attorney Robert Pitman and FBI Special Agent in Charge Armando Fernandez.
Appearing before United States District Judge Alia Moses, Heredia pleaded guilty to one count of receiving a bribe by an agent of an organization receiving federal funds. By pleading guilty, Heredia admitted that in 2010 and 2011, he manipulated the bidding process to guarantee that contractors he chose would be awarded Maverick County construction contracts. Furthermore, Heredia admitted that he instructed the private contractors to submit inflated bids to Maverick County in order to ensure the availability of sufficient funds to perform the construction work, make a profit, and also to pay him bribes. According to court records, Heredia collected thousands of dollars in bribes while Maverick County suffered losses estimated between $200,000 and $400,000 as a result of Heredia’s scheme.
Heredia, who has remained in federal custody since his arrest last October, faces up to ten years in federal prison and a maximum $250,000 fine. In addition, Heredia has agreed to pay any and all restitution to be determined by the Court resulting from his illegal conduct as Maverick County Commissioner in 2010 and 2011 as well as any and all federal taxes owed to the United States for calendar years 2010, 2011, and 2012. Sentencing is scheduled for 9:00 am on November 25, 2013.
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.
Federal Jury Convicts Former Cameron County District Attorney Armando Villalobos in Connection with South Texas Bribery SchemeRead the Press Release
Former Cameron County District Attorney Armando Villalobos faces federal prison time after a jury in Brownsville convicted him of federal charges related to a bribery and extortion scheme in South Texas announced United States Attorney Robert Pitman and Federal Bureau of Investigation Special Agent in Charge Armando Fernandez, San Antonio Division.
Late Friday evening, jurors 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.
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 from South Texas attorney and co-defendant Eduardo “Eddie” Lucio and others 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, including Lucio, to handle civil and forfeiture matters associated with criminal matters pending in the Office of the District and County Attorney of Cameron County.
Villalobos, who remains on bond, faces up to 20 years in federal prison per count at sentencing scheduled for 8:30am on August 26, 2013, before U.S. District Judge Andrew Hanen in Brownsville.
Eduardo Lucio remains under indictment charged with one count of violating the Racketeer Influenced and Corrupt Organizations (RICO) Act, one count of conspiracy to violate the RICO Act and three counts of extortion. He is currently on bond awaiting a trial date.
This investigation was conducted by the Federal Bureau of Investigation, Drug Enforcement Administration, Internal Revenue Service-Criminal Investigation and the Brownsville Police Department. Southern District of Texas Assistant United States Attorney Michael Wynne and Western District of Texas Assistant United States Attorney Greg Surovic are prosecuting this case on behalf of the Government.
Ringleader Sentenced to Federal Prison in Connection with Fort Stockton-Based Cocaine Distribution NetworkRead the Press Release
In Pecos yesterday, 34-year-old drug trafficking organization ringleader Noe Torres Ortega was sentenced to 262 months in federal prison followed by five years of supervised release announced United States Attorney Robert Pitman and Drug Enforcement Administration Special Agent in Charge Joseph M. Arabit.
Ortega is the last of 24 indicted defendants who pleaded guilty and was sentenced for his/her role in a Fort
Stockton-based cocaine trafficking conspiracy that was responsible for the distribution of over 50 kilograms of cocaine since 2009. Sentences handed down in this case range from 262 months in federal prison to three years probation.This investigation was conducted by agents with the Drug Enforcement Administration Alpine Resident Office Multi-Agency Task Force (MTF) comprised of agents from DEA, United States Border Patrol, Pecos County Sheriff's Office, Brewster County Sheriff's Office, Alpine Police Department, and the Texas Department of Public Safety - Criminal Investigation Division as well as members of Homeland Security Investigations (HSI) in Presidio and Alpine and the Fort Stockton Police Department. This case was prosecuted by Assistant United States Attorney Monty Kimball.
Eight Killeen Residents Arrested in Connection with Cocaine Distribution OperationRead the Press Release
Federal, state and local authorities have arrested eight individuals in connection with a cocaine distribution operation based in Killeen, Texas, announced United States Attorney Robert Pitman, Federal Bureau of Investigation San Antonio Division Special Agent in Charge Armando Fernandez and Killeen Police Chief Dennis M. Baldwin.
A two-count federal grand jury indictment, returned on Tuesday and unsealed today, charges 31–year-old Cornelius Tywarren Wilson, 29-year-old Christopher Andrew Wilson, 38-year-old Jamel Azar Singleton and 30–year-old Jason Eugene Jackson with one count of conspiracy to possess with intent to distribute cocaine and one count of conspiracy to possess with intent to distribute “crack” cocaine. Bryant Keith Presley, age 28, and Katrie Deshone Simpson, age 30, are also charged in the crack cocaine conspiracy count while 38–year-old Michael Anthony Mango is also charged in the cocaine conspiracy count. The indictment alleges that the defendants have been involved in the cocaine distribution operation since October 2012.
Authorities arrested the indicted defendants yesterday without incident. An eighth individual who was arrested yesterday, 26-year-old Walter Chambers, is charged by criminal complaint with conspiracy to possess with intent to distribute cocaine. According to the affidavit, Chamber’s arrest occurred subsequent to the execution of a search warrant in an apartment in Killeen. During the search, authorities recovered cocaine, crack cocaine and a handgun.
Each charge calls for between five and 40 years in federal prison and a maximum $2 million fine upon conviction. The defendants remain in federal custody pending a detention hearing scheduled for 2:00pm on Tuesday before United States Magistrate Judge Jeffrey C. Manske.
This case resulted from an investigation by the Federal Bureau of Investigation (FBI) together with the Drug Enforcement Administration and the Killeen Police Department. Assistant United States Attorney Sean Condron 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.
Three Sentenced in Connection with Odessa-Based Firearms Straw Purchasing and Trafficking InvestigationRead the Press Release
In Midland today, sentences were handed down to three individuals, including former Odessa, TX, residents Miguel and Michelle Compean and Odessa resident Brian Connell, for their roles in a firearms straw purchasing and trafficking investigation announced United States Attorney Robert Pitman and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Dallas Field Office Special Agent in Charge Robert Champion.
United States District Judge Robert A. Junell sentenced 28-year-old Brian Connell to 60 months in federal prison followed by three years of supervised release. On February 25, 2013, Connell pleaded guilty to one count of conspiracy to smuggle goods from the United States and one count of giving a false statement to a federal official.
Judge Junell also sentenced Greenville, TX, residents 33–year-old Miguel Angel Compean, and his wife, 27-year-old Michelle Compean to 121 months in federal prison and 60 months probation, respectively. On February 11, 2013, Miguel Compean pleaded guilty to one count of conspiracy to smuggle goods from the United States, one count of making a false statement in the acquisition of a firearm and one count of aggravated identity theft. On February 20, 2013, Michelle Compean pleaded guilty to one count of making a false statement in the acquisition of a firearm.
By pleading guilty, the defendants admitted to participating in a scheme which involved surreptitiously purchasing approximately 100 firearms, including AK-47 style rifles and pistols, from various firearms dealers in Odessa, Fort Worth, Dallas, Brenham and Mesquite, TX, in order to smuggle them from the United States into Mexico during a 13-month period beginning in December 2011. Miguel Compean admittedly purchased firearms for himself by using a relative’s name, date of birth and social security number. Compean also admitted to recruiting his wife, Michelle, and Brian Connell to purchase firearms on his behalf and paying Connell $300 for each firearm that Connell straw purchased and gave to Compean. Michelle Compean and Brian Connell both admitted to making false statements on ATF Form 4473 at the time of a firearm purchase claiming to be the actual buyer.
This case was investigated by ATF agents. Assistant United States Attorney Will Tatum prosecuted this case on behalf of the Government.
Former West Texas Mayor Pleads Guilty to Stealing Money from the City of ToyahRead the Press Release
In Midland, 41–year-old Bartolo Sanchez, former mayor of Toyah, Texas, faces three years in federal prison as well as restitution after pleading guilty this morning to stealing approximately $100,000 from the city based on fraudulent mileage reimbursement claims and personal expenditures announced United States Attorney Robert Pitman and Federal Bureau of Investigation Special Agent in Charge Mark Morgan.
Appearing before United States District Judge Robert A. Junell this morning, Sanchez pleaded guilty to one count each of wire fraud and aggravated identity theft. By pleading guilty, Sanchez admitted that on May 14, 2009, and unbeknownst to the Toyah City Council, Sanchez signed a $228,132.54 settlement agreement with Chesapeake Operating, Inc. for repairs of surface damage on Toyah streets caused by Chesapeake vehicles. Sanchez deposited that money into a new Toyah bank account that he created.
Furthermore, having signatory authority on all city bank accounts, Sanchez admittedly wrote checks to himself from various city bank accounts, including the one he created from the Chesapeake settlement, based predominantly upon fraudulent mileage reimbursement claims but also for various expenses, most of which were personal in nature and had little or nothing to do with official City business. So as to not raise the suspicions of City Council members as to his scheme, Sanchez forged a required second signature on all of the checks he issued to himself.
From May 2006 until December 2012, Sanchez served as the elected mayor of Toyah, a city located approximately 22 miles west of Pecos, Texas, comprising approximately 1.6 square miles and having a population of about 100 residents.
Sentencing for Sanchez has yet to be scheduled. He remains on bond pending sentencing.
This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Austin Berry is prosecuting this case on behalf of the Government.
Former Eagle Pass Department of Public Works Employee Sentenced for Role in City Credit Card Fraud SchemeRead the Press Release
This morning, former City of Eagle Pass Department of Public Works employee Edgar Aguilar was sentenced to 42 months in federal prison and ordered to pay $68,373.87 in restitution for his role in a credit card fraud scheme involving the City of Eagle Pass announced United States Attorney Robert Pitman and Federal Bureau of Investigation Special Agent in Charge Armando Fernandez.
On November 29, 2012, Aguilar pleaded guilty to one count of conspiracy to commit credit card fraud. By pleading guilty, Aguilar admitted that during 2011, he obtained five City of Eagle Pass-owned “Fuelman” credit cards designated for fuel purchases for Public Works department vehicles and distributed them to his co-defendants. The defendants then used those cards to purchase fuel for their own vehicles and to purchase fuel for others at the City’s expense. In some instances, defendants charged individuals a reduced rate for fuel purchased using the City’s credit card, and then pocketed the cash.
Co-defendants Rene Castillo, Armando Ojeda Nuncio, and Ricardo Hernandez-Espinoza have all pleaded guilty to use of unauthorized access device. Elizabeth Vivian has pleaded guilty to the conspiracy charge. All four are awaiting sentencing.
This joint investigation was conducted by agents with the Federal Bureau of Investigation together with investigators from the Eagle Pass Police Department. Assistant United States Attorney Tad Duree is prosecuting this case on behalf of the Government.
Federal Prison Term Handed Down to San Antonio Woman for Attempting to Purchase Machine Guns and for Bank FraudRead the Press Release
In San Antonio this morning, 38-year-old Yadira Mauricio Ybarra was sentenced to 87 months in federal prison for her role in a conspiracy to purchase machine guns and attempt to smuggle them into Mexico as well as bank fraud announced United States Attorney Robert Pitman, Bureau of Alcohol, Tobacco, Firearms and Explosives - Houston Division Special Agent in Charge Melvin D. King, Jr., and Homeland Security Investigations Special Agent in Charge Vincent Iglio.
United States District Judge Orlando Garcia also ordered that Ybarra pay $133,846.09 restitution for the bank fraud and be placed under supervised release for a period of three years after completing her prison term.
On July 12, 2011, Ybarra pleaded guilty to one count of possession of a machine gun. According to court records, on April 19, 2011, federal authorities arrested Ybarra and 24–year-old Willy Mendoza after they paid $10,000 to an undercover agent and took possession of ten firearms--four fully-automatic machine guns and six semi-automatic assault rifles. Court records also reflect that both Ybarra and Mendoza knew the firearms were going to be taken to Mexico. On October 6, 2011, Mendoza was sentenced to 70 months in federal prison followed by two years of supervised release after pleading guilty to possession of a machine gun.
On February 7, 2012, Ybarra pleaded guilty to one count of conspiracy bank fraud. By pleading guilty, Ybarra admitted that from April 28, 2009 until July 6, 2009, she conspired with others to steal approximately $130,000 by forging signatures of various account holders at the Wells Fargo Bank, Las Palmas branch, in San Antonio.
These cases were investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and ICE Homeland Security Investigations together with the San Antonio Police Department and the United States Secret Service. Assistant United States Attorney Mark Roomberg prosecuted these cases on behalf of the Government.
Federal Criminal Complaint Filed Against West, Texas Man Charging Him with Possession of A Destructive DeviceRead the Press Release
In Waco this morning, federal authorities filed a criminal complaint (Case #: W13-127M) charging 31-year-old Bryce Ashley Reed with unlawfully possessing an unregistered destructive device announced United States Attorney Robert Pitman and ATF Special Agent in Charge Robert Champion.
According to the complaint, on May 7, 2013, deputies from the McLennan County Sheriff’s Office were dispatched to a residence in Abbott, Texas, where they discovered an assortment of bomb making components. The complaint alleges that Reed had given the components to the resident on April 26, 2013.
ATF agents arrested Reed late yesterday afternoon in West. Reed had his initial appearance in federal court this morning in Waco. He remains in federal custody pending a detention hearing on May 15, 2013, in Waco before United States Magistrate Judge Jeffrey C. Manske.
Upon conviction, Reed faces up to ten years in federal prison and a maximum $250,000 fine.
At this time authorities will not speculate whether the possession of the unregistered destructive device has any connection to the West fertilizer plant explosion on April 17, 2013. This ongoing investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives together with the McLennan County Sheriff’s Office, McLennan County District Attorney’s Office, West Police Department, Texas State Fire Marshal’s Office and Texas Department of Insurance Fraud Unit. Assistant United States Attorneys Mark Frazier and Greg Gloff are prosecuting this case on behalf of the Government.
A criminal complaint is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
Federal Jury in Austin Convicts Fourt in Multi-Million Dollar Money Laundering Conspiracy Involving Los Zetas Drug Trafficking Proceeds, Extortion, and BriberyRead the Press Release
Cash from the sale of drugs was laundered to purchase, train, breed and race American quarter horses in U.S.
In Austin, four men face up to 20 years in federal prison after a jury convicted them of their roles in a complex conspiracy to launder millions of dollars in illicit Los Zetas drug trafficking proceeds to purchase, train, breed, and race American quarter horses in the United States announced United States Attorney Robert Pitman, FBI Special Agent in Charge Armando Fernandez, Richard Weber, Chief, Internal Revenue Service Criminal Investigation and DEA Special Agent in Charge Javier Pena.
Jurors convicted 46–year-old Balch Springs, TX, resident Jose Trevino Morales, the brother of purported Los Zetas leaders, Miguel Trevino Morales (aka “40”) and Oscar Omar Trevino Morales (aka “42”), as well as 52-year-old Mexican businessman Francisco Colorado Cessa, 30-year-old horse trainer and purchasing agent Fernando Solis Garcia, 49-year-old horse trainer Eusevio Maldonado Huitron of one count of conspiracy to commit money laundering. Jurors acquitted horse trainer and home builder Jesus Maldonado Huitron of Austin of the money laundering conspiracy charge. No sentencing date has been scheduled for the four convicted this afternoon.
“This trial documented the violence, brutality and corruption generated by Mexican drug cartels, in this case the particularly ruthless Los Zetas. The government was able to show how the corrupting influence of drug cartels has extended into the United States with cartel bosses using an otherwise legitimate domestic industry to launder proceeds from drug trafficking and other crimes,” stated United States Attorney Robert Pitman.
U.S. Attorney Pitman added, “The Department of Justice, the Treasury Department and all our federal, state and local law enforcement partners are committed to drawing a line in the sand to prevent the Mexican cartels from importing their brand of violent crime, corruption and ruthlessness into the United States. When we find evidence of cartel activity, whether in the form of drug trafficking, firearms smuggling or money laundering, we will work tirelessly to root out the perpetrators, deprive them of their profits, and seek the punishment appropriate to their crimes.”
Evidence presented during the 12-day trial revealed that Los Zetas are a powerful drug cartel based in Mexico and generate multi-million dollar revenues from drug trafficking. Since 2008, Miguel and Oscar Trevino Morales would direct portions of the bulk cash generated from the sale of illegal narcotics to Jose Trevino and his wife, Zulema Trevino, for purchasing, training, breeding and racing American quarter horses in the United States. Testimony also revealed a shell game by the defendants involving straw purchasers and transactions worth millions of dollars in New Mexico, Oklahoma, California and Texas to disguise the source drug money and make the proceeds from the sale of quarter horses or their race winnings appear legitimate. Furthermore, the defendants implemented a scheme to structure cash deposits in amounts under $10,000 in order to circumvent mandatory bank reporting requirements.
“Today’s verdict affirms the hard work and dedication of The FBI and our law enforcement partners in combating drug cartels and their attempts to influence and control legitimate enterprises. The FBI will continue to combat the efforts of organized criminal enterprises, including the Zetas, who would seek to endanger our communities,” stated FBI SAC Armando Fernandez.
Over 400 quarter horses seized by federal authorities in June as part of the above mentioned money laundering operation have been sold for approximately $9 million. Most of the horses were sold at Heritage Place Auction Facility in Oklahoma City, OK, in the past year including A Dash of Sweet Heat, which sold for $1 million. Approximately 100 broodmares were sold prior to auction for $35,000. The federal government still retains possession of nine quarter horses, including Tempting Dash, winner of the Dash for Cash at Lone Star Park race track in Grand Prairie, Texas, on October 24, 2009; Mr. Piloto, $1 million All American Futurity winner at Ruidoso Downs on Labor Day, 2010; Dashin Follies; Separate Fire; and Y516, a yearling seized on Zule Farms in Lexington, OK. Four of the nine quarter horses, none of which are named above, are scheduled for sale at auction at Heritage Place Auction Facility in Oklahoma on May 11, 2013.
U.S. Attorney Pitman noted that the proceeds from the sale of these quarter horses are held in escrow pending the resolution of a forfeiture action. Furthermore, the Government seeks the forfeiture of farm and ranch equipment; horse racing equipment; real property in Lexington, OK, and in Bastrop County, TX; and, funds contained in three bank accounts allegedly used in the defendants’ scheme. The Government also seeks a monetary judgment in the amount of $60 million representing the amount of money derived from the conspiracy.
“This verdict is an important victory for the American public,” said Richard Weber, Chief, IRS Criminal Investigation. “The Los Zetas used U.S. businesses to legitimize their illegal drug proceeds. Today, the Los Zetas cartel was brought to justice for their drug trafficking and money laundering operations. By following the money trail, IRS CI special agents were able to financially disrupt and dismantle this major drug trafficking organization. The fall of the Los Zetas cartel is an example of the great work our agents do on a daily basis.”
Authorities continue to seek the apprehension of seven co-defendants in this case including purported leaders of the Los Zetas, 35-year-old Miguel Trevino Morales (aka “40”) and his brother, 39-year-old Oscar Trevino Morales (aka “42”), as well as 32–year-old Victor Manuel Lopez, Sergio Guerrero Rincon, 41-year-old Luis Gerardo Aguirre, Erick Jovan Lozano Diaz and Gerardo Garza Quintero. Co-defendants Zulema Trevino, the wife of Jose Trevino Morales, Alexandra Garcia Trevino, the daughter of Jose Trevino Morales, 21-year-old Raul Ramirez, 23-year-old Adan Farias, and 29–year-old Felipe Alejandro Quintero, entered pleas of guilty to related charges prior to jury selection and are awaiting sentencing.
This investigation was conducted by agents with the Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation and the Drug Enforcement Administration with assistance from the United States Marshals Service, Immigration and Customs Enforcement Homeland Security Investigations (ICE-HSI) and U.S. Customs and Border Patrol, as well as local law enforcement agents in Irving, Texas, Lorena, Texas, Bruceville Eddy, Texas, Fort Worth, Texas and Laredo, Texas. The investigation received assistance from the Texas Army National Guard, Cleveland County, Oklahoma Sheriff’s Office, and the Oklahoma and New Mexico Racing Commissions. The U.S. Attorney’s Office for the Eastern District of Texas prosecuted several members of the Los Zetas drug cartel on drug trafficking charges related to this conspiracy and provided substantial assistance to this investigation. The U.S. Department of Treasury’s Office of Foreign Assets Control (OFAC) provided assistance with the forfeiture action in this case.
Federal Jury in Midland Convicts Stanton Man of Enticement ChargeRead the Press Release
In Midland this afternoon, Charles Martinez, an aspiring rapper also known as “Ereez,” faces a minimum of ten years and up to life in federal prison after a jury convicted him of bringing a minor female to Texas to engage in sexual activity announced United States Attorney Robert Pitman.
Jurors convicted the 28–year-old Stanton, TX, resident of one count of using the internet to persuade, induce, or entice a juvenile to engage in sexual activity and one count of transporting a juvenile across state lines to engage in sexual activity. Evidence at trial revealed that Defendant was an aspiring musician with a YouTube channel where he posted videos of his music. In April 2012, the then 15-year-old girl, who lived in Green Bay, Wisconsin, messaged Martinez on his Facebook fan page. After a series of communications via Facebook, email and phone, Martinez traveled to Wisconsin to meet the victim in April and May 2012. They had sexual relations there. In June 2012, Martinez transported the victim to Stanton.
Martinez, who remains in custody, is scheduled to be sentenced at 2:45pm on July 25, 2013, before United States District Judge Robert A. Junell.
This investigation was conducted by agents with Homeland Security Investigations (HSI) and the Green Bay Police Department. Assistant United States Attorney Austin Berry is prosecuting this case on behalf of the Government.
Federal Prison Terms Handed Down for Austin-Based Heroin Distribution OperationRead the Press Release
Thirteen defendants have received lengthy federal prison terms for their roles in an Austin-based heroin distribution operation announced United States Attorney Robert Pitman, Federal Bureau of Investigation Special Agent in Charge Armando Fernandez, Austin Police Chief Art Acevedo and Texas Department of Public Safety Director Steven C. McCraw.
On Friday, United States District Judge Sam Sparks handed down the following prison sentences: 69-year-old Jose Pardo of Austin and 67-year-old Michael Martinez of Austin – 360 months; 45-year-old Jorge Carrillo of Lockhart, TX – 188 months; 63-year-old Dionicio Sanchez of Austin – 135 months; 43-year-old David Sosa of Austin – 130 months; 46-year-old Amanda Pardo of Austin and 65-year-old Terry Ayers of Austin – 120 months; 63-year-old Alfredo Alvarez of Austin – 110 months; 32-year-old Chris Mier of Austin – 51 months; 26-year-old Tatiana Huang of Austin – 48 months; 46-year-old Kilpatrick Williams of Austin – 41 months; 25-year-old Leah Day of Austin and 36-year-old Jeffrey Finn of Shenandoah, TX – 12 months. In addition to the prison terms, Judge Sparks ordered that the following defendants pay fines: Amanda Pardo, $15,000; Jorge Carrillo, Tatiana Huang and Chris Meir, $6,000 each; and, Kilpatrick Williams, Leach Day and Jeffrey Finn, $3,600. Judge Sparks also ordered that all of the defendants be placed under supervised release for a period of five years after completing their respective prison terms.
Lucy Estrada, age 33, is scheduled to be sentenced on Friday. The alleged ringleader, Amado Pardo, passed away prior to trial.
Evidence presented in court revealed the defendants conspired from May 2011 until their arrests in June of 2012 to distribute more than 17 kilograms of heroin. Testimony also revealed that at least on one occasion, heroin was processed after business hours at the Pardo family-owned restaurant, Jovita’s, and that numerous drug transactions occurred right behind Jovita’s in co-defendant Amado Pardo’s house.“The sentencing of these traffickers is especially rewarding when you consider the longevity of the leaders participation in drug trafficking in the Austin area. These sentences ensure that the leadership of this trafficking group has been effectively dismantled,” stated FBI SAC Fernandez.
This case was investigated by the Federal Bureau of Investigation, Austin Police Department, Texas Department of Public Safety, Texas Department of Criminal Justice Office of the Inspector General, Drug Enforcement Administration and the Travis County Sheriff’s Office. This matter is being prosecuted by Assistant United States Attorneys Dan Guess and Elizabeth Cottingham.
Texas Syndicate Prison Gang Members Sentenced Today for Their Roles in Conspiring to Engage in Racketeering Offenses Including Murder and Attempted MurderRead the Press Release
Two members of the Texas Syndicate prison gang, Adam Chavez and Alejandro Flores, were sentenced today by the Honorable Chief Judge Fred Biery, announced United States Attorney Robert Pitman.
Both defendants were named in a 2011 federal indictment that charged twenty-three members of the Texas Syndicate prison gang with multiple racketeering offenses that included murder, attempted murder, conspiracy to murder, and drug-trafficking.
Adam Chavez, pleaded guilty to conspiring to engage in racketeering. As part of his guilty plea Chavez admitted his role in July 2, 2011, the murder of PriscillaVidaurri, who was killed when she was struck by gunfire intended for her brother-in-law. Chavez and other members of the Texas Syndicate gang targeted a fellow member of the gang, but in a case of mistaken identity, shot at the brother of their intended target and in the process, killed Ms. Vidaurri and injured her husband. Neither Ms. Vidaurrri nor her husband had any connection to the gang. By his plea, Chavez also admitted to his role in the drug trafficking activities of the gang. Today, Chief Judge Biery sentenced Chavez to a 30 year prison sentence for his role in the conspiracy followed by a five year term of supervised release.
Alejandro Flores also pled guilty to conspiring to engage in racketeering. By his guilty plea, Flores admitted to having participated in a shooting of a San Antonio man on March 25, 2011, in which Flores and other members of the Texas Syndicate shot at a person they suspected was a rival gang member. As part of his guilty plea, Flores admitted his participation in a conspiracy to kill rival gang members. Today, Chief Judge Biery sentenced Flores to 10 years of imprisonment followed by a three year term of supervised release for his role in the conspiracy.
This case was prosecuted by Assistant United States Attorneys Joey Contreras and Karen Norris. This case was investigated by the Drug Enforcement Administration, who were assisted by the San Antonio Police Department, Bexar County Sheriff’s Office, Bureau of Alcohol, Tobacco, and Firearms, and the Texas Department of Pardons and Parole.
Midland Man Arrested on Firearms ChargesRead the Press Release
Midland resident and land surveyor, Steven Leonard Prewit, was arrested Thursday, May 2, 2013, on a sealed criminal complaint charging Prewit with possession of unregistered firearms, 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 Mark Morgan.
Today, Prewit appeared before United States Magistrate Judge David Counts, in Midland, Texas, for his initial appearance, at which time, the complaint against Prewit was unsealed. The complaint alleges that Prewit was in possession of fully automatic firearms, improvised explosive devices and silencers which did not have the serial numbers or manufacturing markings required by law. Federal law requires that firearms, silencers and destructive devices be identified by a serial number. Federal law also requires that these items be registered with the ATF National Firearms Branch, which records the identity of the registered owner in the National Firearms Registration and Transfer Record. The complaint alleges that the fully automatic firearms, unmarked silencers and improvised explosive devices were not registered to Prewit in the National Firearms Registration and Transfer Record, as required by law. Prewit faces a sentence of up to ten years imprisonment on this charge.
He is scheduled to appear before the Honorable Judge Counts on Wednesday, May 8, 2013, for a preliminary and detention hearing. Prewit is being held without bond pending that hearing.
Assistant United States Attorneys LaTawn Warsaw and John Klassen are prosecuting this case on behalf of the Government.
A criminal complaint is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
Two Eagle Pass Residents Enter Guilty Pleas in Connection with Maverick County Bribery, Kickback and Bid-Rigging SchemeRead the Press Release
Maverick County Precinct One Commissioner Eliaz Maldonado and Maverick County Probation Officer and general contractor Javier Gonzalez each face up to ten years in federal prison and up to a $250,000 fine after pleading guilty this morning to a bribery charge in connection with an alleged bribery, kickback and bid-rigging scheme that caused a loss to Maverick County of thousands of dollars announced United States Attorney Robert Pitman and FBI Special Agent in Charge Armando Fernandez.
Appearing before United States Magistrate Judge Victor Garcia in Del Rio, Maldonado, age 52, pleaded guilty to one count of receiving a bribe. According to court records, in 2010 and 2011, Maldonado, through his employees, admitted to manipulating the bidding process to guarantee that contractors he chose would be awarded Maverick County construction contracts. Those contractors deposited the checks issued to them by Maverick County and then made cash payments to Maldonado. The private contractors submitted inflated bids to Maverick County in order for there to be sufficient funds to perform the construction work, make a profit, and pay the bribe to Maldonado. The contracts in total involved more than $100,000 of county funds and Maldonado received a payment between $500 and $3,500 at least twelve times during the scheme.
Gonzalez, age 42, pleaded guilty to one count of paying a bribe. By pleading guilty, Gonzalez admitted that in 2010 and 2011, he entered into a scheme with different Maverick County officials whereby he would be guaranteed county construction contracts in return for paying money to the official whose precinct the construction work was supposed to be performed in. According to court documents, after Gonzalez was selected to do the work, he would be paid via checks issued by Maverick County. Gonzalez would deposit or cash the checks, then give the officials thousands of dollars from the money Maverick County had paid him. The contracts Maverick County awarded Gonzalez involved more than $400,000 of county funds in 2010 and 2011 combined. The total loss to Maverick County as a result of Gonzalez’ actions was approximately $156,000.
Both Maldonado and Gonzalez were admonished in court that in addition to any imprisonment or fine, they could each be ordered to pay restitution at the time of sentencing.
Maldonado and Gonzalez each remain on bond pending sentencing scheduled for October 7, 2013 before United States District Judge Alia Moses.
To date, nine individuals are awaiting sentencing after pleading guilty to charges stemming from this investigation being conducted by the Federal Bureau of Investigation and the Texas Department of Public Safety. Charges against five individuals are still pending.
Persons 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.
Federal and State Authorities Arrest El Paso-Based Drug Trafficking Organization on Federal ChargesRead the Press Release
United States Attorney Robert Pitman, Drug Enforcement Administration Special Agent in Charge Joseph M. Arabit and Federal Bureau of Investigation Special Agent in Charge Mark Morgan announced today that 16 El Paso, Texas defendants have been arrested, based on a 41-count federal indictment charging violations of federal drug and gun laws.
Those arrested and charged by indictment include: Gabriel Fierro, age 41; Jesus Aguiniga, age 29; Adrian Uriel, age 36; Jerry Urbina, age 43; Raul Adrian Chavira, age 30; Daniel Fierro, age 39; Roberto Mendez, age 44; Jaime Aguilar, age 30 ; Javier Alarcon, age 46; Cesar Chavarria, age 31; Marco Antonio Morales, age 37; Evelyn Bencomo, age 22; Angela Marie Webb, age 31; Sharday Vince, age 28; Billy Jack Barrow, age 31; Caleb Jordan McCreless, age 23. Two defendants are fugitives.
A federal grand jury indictment, returned on April 17, 2013, and unsealed today, alleges that from January 2010 to April 2013, all 18 defendants conspired to possess with the intent to distribute in excess of five (5) kilograms of cocaine. Gabriel Fierro, Jesus Aguiniga, Adrian Uriel, Jerry Urbina, Raul Adrian Chavira, Daniel Fierro, Cesar Chavarria, Marco Antonio Morales, Caleb Jordon McCreless, Evelyn Bencomo, and Angela Maria Webb are all charged with possession with intent to distribute and/or distribution of cocaine. Gabriel Fierro, Jesus Aguiniga, Daniel Fierro, Angela Marie Webb, Evelyn Bencomo, Roberto Mendez, and Jerry Urbina are charged with Maintaining a Drug Involved Premise. Jesus Aguiniga, is charged with Possession with Intent to Distribute and/or Distribution of Cocaine and Maintaining a Drug Involved Premise within 1000 feet of a school. Gabriel Fierro and Javier Alarcon are also charged with Possession of a Firearm by a Prohibited Person.
Upon conviction, all defendants face a minimum mandatory of 10 years to life imprisonment on the conspiracy charge; up to 20 years imprisonment on the possession with the intent to distribute and/or distribution of cocaine; up to 20 years on maintaining a drug involved premises; up to 40 years imprisonment on possession with the intent to distribute and/or distribution of cocaine and maintaining a drug involved premises within 1000 feet of a school; and up to 10 years imprisonment on the possession of a firearm by a prohibited person.
In addition to the arrests, five (5) residences in El Paso were searched pursuant to federal search warrants.
FBI Special Agent in Charge Mark Morgan stated, “The arrests today are the culmination of an aggressive joint investigation by the DEA and FBI, as well as, numerous local, state, and federal partners, to rid the city of El Paso of firearm offenders and drug dealers".
“Cocaine destroys the lives of its abusers and has far-reaching negative effects in the areas where it takes hold. By targeting local distribution networks, such as the one in this investigation in the El Paso area, DEA and its law enforcement partners are holding drug dealers responsible for the harm they cause. We will continue to work together to pursue those who threaten our communities through the smuggling and distribution of illegal and dangerous drugs,” stated DEA Special Agent in Charge Joseph M. Arabit.
Other agencies assisted in this investigation to include the El Paso Sheriff’s Office, El Paso Police Department, Texas Department of Public Safety, United States Army Criminal Investigation Division, Bureau of Alcohol, Tobacco, Firearms and Explosives, United States Marshals Service, Anthony Police Department , United States Border Patrol, Homeland Security Investigations, Immigrations and Customs Enforcement, and the Texas Alcoholic Beverage Commission. The case is being prosecuted by Assistant United States Attorney Juanita Fielden.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty.
Jury Convicts Three in Multi-Million Dollar Scheme to Defraud the United StatesRead the Press Release
A federal jury this morning in San Antonio convicted three individuals for their roles in a multi-million dollar fraud scheme announced United States Attorney Robert Pitman, General Services Administration (GSA) Inspector General Brian D. Miller, Air Force Office of Special Investigations (AFOSI), and the Defense Contract Audit Agency (DCAA).
Jurors convicted 62-year-old Donald Dean Brewer and his wife, 62-year old Sherri Lynn Brewer, both of Clovis, New Mexico, and 60-year-old James McKinney of San Antonio, with one count of conspiracy to defraud the United States, twelve counts of wire fraud and three counts of major fraud against the United States.
Testimony at trial established that in 2002, Donald Brewer was employed by KARTA Technologies, Inc. (KARTA), as the Medical Systems Infrastructure Modernization (MSIM) program manager at Brooks City-Base, San Antonio and James McKinney served as the Vice President of Government Services for Ark Systems, Inc. (Ark). KARTA contracted with the Air Force to provide engineers and analysts to evaluate and implement MSIM projects for the Air Force; Ark was hired by various Government contractors to provide the installation of cabling and electronics in support of MSIM projects at Air Force medical facilities worldwide. Testimony revealed that the defendants created a sham subcontracting business, Enterprise and Deployment, LLC (E&D) to be included as an additional extra subcontractor between the prime contractors and Ark. E&D added no value to these contracts, but the defendants submitted invoices for payment to E&D invoices, causing prime contractors to overcharge the Air Force by including E&D’s fraudulent charges in the prime contractor invoices. From July 2002 through 2008, the defendants carried out their scheme, obtaining approximately $33.5 million in subcontracts for E&D and thereby enriching themselves by almost $6.5 million.
The conspiracy charge carries a statutory maximum penalty of five years in federal prison; each wire fraud charge up to 20 years in federal prison; and, each major fraud charge up to 10 years in federal prison. A monetary judgment against the defendants for more than $6 million is also pending before the Court. The defendants remain free on bond pending sentencing scheduled for June 28, 2013 before Chief U.S. District Judge Fred Biery.
This case was investigated by the GSA Office of Inspector General, AFOSI and DCAA. Assistant United States Attorney James Blankinship and Special Assistant United States Attorney Gary McCown prosecuted this case on behalf of the United States.
Eagle Pass Businessman Indicted in Connection with Maverick County Bribery, Kickback and Bid-Rigging SchemeRead the Press Release
In Eagle Pass, Texas, Federal Bureau of Investigation agents along with Texas Department Public Safety agents arrested 35-year-old Hipolito Amaya, owner of AM-ROD Construction based in Eagle Pass, in connection with an alleged bribery, kickback and bid-rigging scheme announced United States Attorney Robert Pitman and FBI Special Agent in Charge Armando Fernandez.
A federal grand jury indictment, returned yesterday and unsealed today, charges the Amaya with one count of paying a bribe to an agent of an organization receiving federal funds. The indictment alleges that in May 2011, Amaya submitted a $35,800 bid to Maverick County to construct a concrete sidewalk on Lago Vista in Precinct 4 of Maverick County. Maverick County issued him a $17,900 check to commence work and then a $17,900 check for the completion of the sidewalk. The indictment alleges that Amaya made cash payments to two Maverick County employees so that he could be paid in full for a project he never completed. Additionally, Amaya is alleged to have never constructed the sidewalk he was paid to build.
Upon conviction, Amaya faces up to ten years in federal prison.
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.
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.
Ringleader Sentenced to Federal Prison for Stealing and Reselling U.S. Military GoodsRead the Press Release
In Waco this afternoon, 62-year-old Michael Bartch, Sr., was sentenced to two years in federal prison for a scheme to resell millions of dollars worth of U.S. military property stolen from Fort Hood and other U.S. military installations announced United States Attorney Robert Pitman and Internal Revenue Service – Criminal Investigation Special Agent in Charge Steve McCollough.
In addition to the prison term, United States District Judge Walter S. Smith ordered that Bartch pay a $2,000 fine and be placed under supervised release for a period of two years after completing his prison term.
On March 29, 2012 Bartch pleaded guilty to one count of illegally exporting defense articles, one count of receiving stolen Government property and one count of money laundering. By pleading guilty, Bartch admitted that beginning in 2007, he knowingly violated U.S. export laws by selling stolen U.S. military equipment. Bartch admitted selling night vision equipment, optics for weaponry, body armor, helmets, military clothing and other items. As a result of the scheme, authorities believe that Bartch and others dealt with in excess of $7 million worth of stolen U.S. military property.
Seven other individuals, all convicted on federal charges resulting from this investigation, have previously been sentenced to terms ranging from six months incarceration to 120 months in federal prison. Charges included receipt of stolen government property, money laundering, illegal export of defense articles, conspiracy, theft of government property and felon in possession of a firearm.
IRS Special Agent in Charge Steve McCollough commented that, “Government employees, both active duty military personnel and their civilian counterparts, like Bartch and his criminal associates, have a sworn duty to protect the assets of the government and to ensure that the governments valuable resources are not stolen. The potentially sensitive military property stolen by these individuals could be used against the US by its enemies. IRS Criminal Investigation plays a crucial role with its law enforcement partners in bringing these individuals to justice.”
This continuing investigation is being conducted by the Central Texas Counter Proliferation Task Force made up of the Internal Revenue Service-Criminal Investigation, Defense Criminal Investigative Service, U.S. Naval Criminal Investigative Service, Homeland Security Investigations, U.S. Army Criminal Investigative Division, Department of Commerce, Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Gregg N. Sofer prosecuted this case on behalf of the Government.Longest Federal Prison Term in El Paso Corruption Investigation Handed Down This Morning to Former Aliviane C.E.O. Cirilo "Chilo" Lara MadridRead the Press Release
In El Paso this morning, former Aliviane Chief Executive Officer Cirilo “Chilo” Lara Madrid was sentenced to 15 years in federal prison for conspiring to embezzle federal program funds announced United States Attorney Robert Pitman and Federal Bureau of Investigation Special Agent in Charge Mark Morgan.
In addition to the prison term, United States District Judge Frank Montalvo ordered that Madrid pay a $100,000 fine and be placed under supervised release for a period of three years after completing his prison term. Judge Montalvo also ordered that Madrid, along with his co-defendants, jointly and severally pay $550,000 restitution to the Substance Abuse and Mental Health Services Administration (SAMHSA).
Last month, Judge Montalvo sentenced Madrid’s co-defendants. Former L.K.G. Enterprises, Inc., (LKG) president Ruben “Sonny” Garcia, Jr., received four years in federal prison followed by three years of supervised release after he pleaded guilty to conspiracy to commit theft or embezzlement of federal program funds. Judge Montalvo also sentenced LKG to five years probation during which time the corporation is prohibited from receiving any government contract.
“Mr. Madrid’s sentence today should send a clear message to the community that we will not tolerate abuse of the American taxpayers or corruption of our institutions of government. The next time someone with such intentions thinks it’s ‘business as usual’ in El Paso, they should remember the fifteen years that Mr. Madrid will spend in federal prison,” stated U.S. Attorney Robert Pitman.
In December, a jury convicted Madrid of one count of conspiracy to steal or embezzle federal program funds, one substantive count of theft of embezzlement of federal program funds and one count of conspiracy to commit mail fraud and the deprivation of honest services. Evidence presented before the jury revealed that Madrid and Garcia conspired to pay a total of $24,000 in bribes to former El Paso County Judge Dolores Briones for her help and assistance to LKG with an El Paso County contract it was awarded to evaluate a health program for severely mentally handicapped and emotionally disturbed children in El Paso County. The program, Border Childrens’ Mental Health Collaborative (BCMHC), was funded by a 5-year federal grant valued at over $9 million. Furthermore, evidence revealed that Madrid and Garcia caused fraudulent reports to be mailed to SAMHSA reflecting that they were satisfying the grant funding requirements.
“Today marks the end of a long and dark chapter in a sad story in which public confidence was shattered by a group, to include Mr. Madrid, who were entrusted to serve the needs of mentally challenged children but instead used their influence to feed their own personal greed. Today’s sentencing of Mr. Madrid also marks the continued commitment of the FBI to aggressively pursue individuals who have violated the public’s trust by holding them personally accountable for their self-serving acts,” stated FBI Special Agent in Charge Mark Morgan, El Paso Division.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorneys Juanita Fielden and William F. Lewis, Jr., are prosecuting this case on behalf of the Government.
Federal Grand Jury Indicts San Antonio Businessman in Connection with Maverick County Bribery, Kickback and Bid-Rigging SchemeRead the Press Release
In San Antonio this morning, federal authorities arrested German Garcia Cano, owner of GGC Enterprises, Inc., on bribery charges in connection with an alleged bribery, kickback and bid-rigging scheme in Maverick County announced United States Attorney Robert Pitman and FBI Special Agent in Charge Armando Fernandez.
A federal grand jury indictment, returned yesterday in Del Rio and unsealed earlier today, charges the 53-year-old San Antonio resident with two counts of paying a bribe to an agent of an organization receiving federal funds and wire fraud. According to the indictment, Maverick County paid GGC hundreds of thousands of dollars between 2009 and 2012 for leasing heavy equipment used in construction projects in Maverick County. The indictment alleges that Cano paid bribes to two Maverick County employees to insure that GGC secured those leasing contracts with Maverick County and to receive his checks from the county.
Upon conviction, Cano faces up to 10 years in federal prison per count.
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.
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.
Federal Grand Jury Indicts Former Maverick County Solid Waste Authority General Manager in Embezzlement SchemeRead the Press Release
In Del Rio this morning, former Maverick County Solid Waste Authority general manager and chief executive officer of the Maverick County landfill Hector Chavez, Jr., surrendered to the Texas Rangers in connection with an alleged embezzlement scheme announced United States Attorney Robert Pitman and FBI Special Agent in Charge Armando Fernandez.
A federal grand jury indictment, returned yesterday and unsealed today, charges the 42-year-old Chavez with one count each of possessing forged securities and theft concerning programs receiving federal funds. According to the indictment, from March 9, 2012 to December 28, 2012, Chavez possessed forged Maverick County checks, which he drafted himself, totaling $62,179.18 made out to Chavez and others. The indictment further alleges that all of the checks were subsequently cashed and Chavez collected all of the proceeds.
Upon conviction, Chavez faces up to 10 years in federal prison per charge.
This ongoing investigation is being conducted by the Federal Bureau of Investigation and the Texas Department of Public Safety Texas Rangers Division. 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.
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.
Arkansas Man Convicted of Transporting Stolen Oilfied EquipmentRead the Press Release
A federal jury this morning in Midland convicted David Julius “Cowboy” McMillian, 56, of interstate transportation of a stolen 1.5 million BTU indirect heater. McMillian, who resides in Mountain Pine, Arkansas, faces up to 10 years in prison and $250,000 fine when he is sentenced on July 11, 2013.
Testimony at trial established that in late December 2010, McMillian, doing business as “Cowboy’s Energy Services,” arranged to lease the indirect heater, which is used in the oilfield, from McKay Equipment Company in Odessa at a rate of $200 per day. McMillian sent a truck to pick up the indirect heater, which was mounted on a gooseneck trailer, on December 29. Thereafter, McMillian made no rental payments whatsoever to McKay Equipment Company, and repeatedly failed to respond to telephone calls, emails, and letters demanding payment and/or return of the property.
Ultimately, the FBI’s Midland-based Oilfield Theft Task Force, with the assistance of the Pennsylvania State Police, located the indirect heater abandoned at a storage facility near Indiana, Pennsylvania in 2012. Testimony at trial established that McMillian failed to make promised payments to the owner of the storage facility as well, and similarly failed to meaningfully respond to that business’s demand for payment.
Assistant United States Attorney John S. Klassen prosecuted the case for the Department of Justice.37 Arrested for Alleged Roles in Austin-Based Drug Distribution OperationsRead the Press Release
Federal, state and local authorities have arrested 37 individuals in connection with two related drug trafficking conspiracies based in Austin announced United States Attorney Robert Pitman, Federal Bureau of Investigation Special Agent in Charge Armando Fernandez, and Drug Enforcement Administration Special Agent in Charge Javier Pena. A list of the arrested defendants is attached.
A three-count federal grand jury indictment (A13CR164), returned on April 2, 2012, and unsealed yesterday, charges 27 individuals with one count of conspiracy to possess with intent to distribute and distribution of methamphetamine. The indictment also charges Gabriel Trevino with one count of possession with intent to distribute and distribution of heroin. Jose Rodriguez, Jose Hernandez, Genaro Arellano and Maria Granados also face one count of conspiracy to commit money laundering. Authorities allege that Jose Rodriguez-Campuzano was the Austin cell head of a large Mexican based trafficking organization associated with the Knights Templar. Using hidden compartments in automobiles, the organization shipped methamphetamine and cocaine to defendant Jesse Trevino’s business, JT Body and Paint in Austin, where it would be prepared for shipment to distributors in Dallas, Oklahoma City, as well as cities in other states. During this investigation, authorities have seized over 75 kilograms of methamphetamine, ten kilograms of cocaine and two kilograms of heroin attributed to this distribution network.
A separate federal grand jury indictment (A13CR166), also returned on April 2, 2012, and unsealed yesterday, charges 14 individuals for their roles in a cocaine and methamphetamine distribution operation. The alleged leader of the organization, Jose Escamilla, as well as Rafael Ayala, Dai Zavala, Trocalle Amos and Brian Griffin are charged with one count of conspiracy to possess with intent to distribute five kilograms or more of cocaine and one count of conspiracy to possess with intent to distribute and distribution of methamphetamine. Edgar Morales and Marco Ayala are charged in the cocaine conspiracy count; Salvador Cabral, Jessica Mitchell and David Cooke, in the methamphetamine conspiracy count. Escamilla, Morales, Ayala, Zavala, Cooke, Josue Pineda and James Dilworth are charged with one count of conspiracy to commit money laundering. Authorities allege that cocaine and methamphetamine were being transported from the Rio Grande Valley to Marco and Rafael Ayala in Austin under the direction of Jose Escamilla. Once in Austin, the drugs would be distributed locally and also outside of Texas. During the investigation, agents were able to seize multiple loads of drugs and proceeds from the sale of drugs. On one occasion, a load of 20 kilograms of cocaine was seized from a hidden compartment in an 18 wheeler. Agents seized multiple kilogram quantities of cocaine and marijuana during the course of the investigation as well as over $1,000,000 in suspected drug proceeds.
“The indictments returned this week represent the latest blow by federal and state law enforcement agencies against drug trafficking organizations in and around Austin. As a result of these charges, we hope to take more than forty alleged drug dealers out of circulation, and expect the evidence to show that their activities involved the distribution of millions of dollars’ worth of methamphetamine, cocaine, and other illegal drugs in this community and beyond,” stated United States Attorney Robert Pitman.
Upon conviction of the cocaine or methamphetamine conspiracy charge, the defendants face between ten years and life in federal prison; heroin conspiracy charge, defendants face between five and 40 years in federal prison; and, money laundering conspiracy charge, defendants face up to 20 years in federal prison.
“The magnitude of this investigation exhibits the patience, determination and skill used by Drug Enforcement Administration (DEA) Special Agents and our law enforcement colleagues,” said DEA Special Agent in Charge Javier Peña. “We are committed to staying the course until drug trafficking organizations like this one are fully dismantled.”
“Today’s dismantlement of this trafficking organization is a further step towards making Austin a safer community,” stated FBI Special Agent in Charge Armando Fernandez. “Our combined law enforcement efforts will continue to be the tool which most effectively removes organized criminals from our society.”
These cases resulted from investigations conducted by the Federal Bureau of Investigation (FBI) and the Drug Enforcement Administration (DEA) along with the Central Texas High Intensity Drug Trafficking Area (HIDTA). The Central Texas HIDTA is made up of investigators from the following agencies: DEA, FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Internal Revenue Service-Criminal Investigation (IRS-CI), Homeland Security Investigations (HSI), United States Marshals Service, Texas Department of Public Safety, Austin Police Department, Round Rock Police Department, Georgetown Police Department, Cedar Park Police Department, Temple Police Department, Travis County District Attorney’s Office, Travis County Sheriff’s Office, Williamson County Sheriff’s Office, Hays County Sheriff’s Office and the Bastrop County Sheriff’s Office. The Texas Department of Criminal Justice-Office of Inspector General and the Kingsville Specialized Crime and Narcotics Task Force also assisted in this investigation.
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.
U.S. v. Jose Rodriguez-Campuzano, et al. -- A13CR164
Name Age Residence Indicted Counts
**JOSE RODRIGUEZ-CAMPUZANO 26 Austin, TX 1,3
**JOSE HERNANDEZ 32 Austin 1,3
JESSE TREVINO 33 Austin 1
**MARIN ARIAS 21 Austin 1
**BRIAN MCCARTY 26 Sanford, NC 1
**SAUL ZUNIGA
JAIME EGUIA 38 Brownsville, TX 1
HECTOR PAREDES 22 Austin 1
RODRIGO RANGEL 32 Del Valle, TX 1
JEFFREY LOEHR 28 Austin 1
ROGELIO CASTANEDA
JOSE ZAVALA 48 Duncanville, TX 1
ENRIQUE ZAVALA 22 Brownsville, TX 1
ELIAZAR GARZA 46 Dallas, TX 1
ELVIRA GAMBOA 35 Austin 1
RAMON GAMBOA 40 1
GABRIEL TREVINO 21 Austin 2
STEPHANIE BLANCO 20 LaJoya, TX 1
BLANCA BRISENO 55 LaJoya, TX 1
**OSCAR REYNA 27 Austin 1
**CHRISTIAN HERNANDEZ 19 Houston, TX 1
GENARO ARELLANO 33 Austin 3
MARIA GRANADOS 45 Austin 3U.S. v. Jose Escamilla, et al. – A:13CR166
JOSE ESCAMILLA 35 Round Rock, TX 1,2,3
EDGAR MORALES 26 Austin, TX 1,3
**RAFAEL AYALA 24 Austin 1,2,3
**MARCO AYALA 32 Austin 1,3
**DAI ZAVALA 39 Del Valle, TX 1,2,3
JOHN GARCIA 25 Austin 1,2
**TROCALLE AMOS 34 Austin 1,2,3
GREG ALLEN JAMES 36 Austin 1
**BRIAN GRIFFIN 31 Austin 1,2
SALVADOR CABRAL 49 Austin 2
JESSICA MITCHELL 37 Buda, TX 2
DAVID COOKE 29 Newark, DE 2,3
JOSUE PINEDA 28 3
JAMES DILWORTH 53 Houston, TX 3** Were already in custody prior to yesterday’s arrests
Uvalde Texas Mexican Mafia Member Sentenced to Life in Federal Prison on Racketeering Offenses as Well as Assaulting A Federal OfficerRead the Press Release
In Del Rio today, 24-year-old Texas Mexican Mafia member Javier “Javi” Guerrero was sentenced to three consecutive life terms plus 210 months in federal prison for committing racketeering offenses and assaulting a guard at the GEO Correctional Facility in Val Verde County announced United States Attorney Robert Pitman, FBI Special Agent in Charge Armando Fernandez, ICE-HSI Special Agent in Charge Vincent Iglio, United States Marshal Robert Almonte, Texas Department of Public Safety Director Steve McCraw and Val Verde County Sheriff Joe Frank Martinez.
In July 2011, a federal jury found Guerrero guilty of several Racketeer Influenced Corrupt Organization (RICO)-based charges including one count of conspiracy to conduct the affairs of an enterprise through a pattern of racketeering and two counts of violent crimes in aid of racketeering. Those charges centered around various federal racketeering offenses committed in Uvalde, Eagle Pass, Del Rio and the surrounding area including the murder of Christopher Mendez on December 6, 2006, near Concan, Texas, and Jose Damian Garza in Hondo, Texas, on July 19, 2008.
“Mr. Guerrero and those involved in organized criminal activity, including those in the Mexican Mafia and other violent groups, should know that we will leave no stone unturned in prosecuting them and making sure that they are put where they can no longer pose a threat to the public. For Mr. Guerrero, this will be for the rest of his life,” stated United States Attorney Robert Pitman.
Guerrero is the last of twelve defendants convicted in this conspiracy to be sentenced to federal prison for RICO-based violations. Prison terms handed down range from seven years incarceration to life in federal prison. All twelve defendants conspired to conduct the affairs of the Texas Mexican Mafia through a pattern of racketeering activity, which included murder, solicitation of murder, drug trafficking, and extortion. The extortion took the form of coercive collection of a ten percent drug tax, also known as “the dime,” from drug distributors known to the members of the criminal enterprise. Collection was enforced by robbery, serious bodily injury, or other acts of violence, including death.
“Today's sentencing confirms the seriousness of our collective efforts to address the outlaw activities of the TMM and the continued threat they pose to our communities,” stated FBI San Antonio Division Special Agent in Charge Armando Fernandez.
“Today’s significant prison sentence of this dangerous individual is a positive step toward ridding our communities of violent street gangs,” said Vincent Iglio, special agent in charge of ICE HSI in San Antonio. ‘This sentence sends a strong message that HSI and its law enforcement partners will continue to conduct aggressive enforcement actions against members and their associates to bring them to justice”.
On October 25, 2011, while in custody awaiting sentencing on the federal racketeering-based charges, Guerrero assaulted a corrections officer by striking the officer in the face with his fists and his knees. As a result, the guard suffered cuts to the nose as well as facial bruising and lacerations. On April 24, 2012, Guerrero pleaded guilty to one count of assaulting a federal officer.
“We’re pleased with today’s sentence. It sends a strong message to anyone who would assault a federal officer,” stated United States Marshal Robert Almonte.
The RICO investigation was conducted by the Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement Homeland Security Investigations (ICE-HSI), and the Texas Department of Public Safety – Criminal Investigations Division, with assistance from the Drug Enforcement Administration, the Hondo Police Department, Texas Department of Public Safety–Texas Rangers, Uvalde Police Department and the Uvalde County Sheriff’s Office. The assault charge resulted from a joint investigation by the United States Marshals Service and investigators from the Val Verde County Sheriff’s Office and officials from the GEO Correctional Facility.San Antonio-Based Texas Mexican Mafia Members SentencedRead the Press Release
United States Attorney Robert Pitman, FBI Special Agent in Charge Armando Fernandez and Texas Department of Public Safety Director Steve McCraw announced that two San Antonio-based members and associates of the Texas Mexican Mafia (TMM), including an individual whom authorities believe held the organizational rank of “Free World General,” have been sentenced to lengthy federal prison terms for their roles in a drug distribution conspiracy.
Appearing before United States District Judge Xavier Rodriguez this afternoon, 45-year-old former TMM General Robert Carreno (aka “Lil Bit”) was sentenced to 300 months in prison for his role in a conspiracy to distribute approximately 48 kilograms of heroin. Guadalupe Ramos (aka “Lupio”), age 48, was sentenced to 210 months in prison.
From December 1, 2009, to July 20, 2011, the defendants were responsible for distributing at least 48 kilograms of heroin, which the TMM sold for $750,000.00. Also, Carreno oversaw the transportation of the heroin from Laredo to San Antonio, for further distribution by TMM members.
Other sentences handed down to co-defendants include: Gabriel Quiroz (aka “Biker”), age 46, sentenced to 168 months; Julio Villanueva (aka “Shorty Hawk”), age 56, sentenced to 262 months; Teresa Alonzo (aka “Tia”), age 63, sentenced to 58 months ; Manuel Gonzales (aka “Speedy”), age 36, sentenced to 188 months; Joseph Sanchez (aka “Cowboy”), age 41, sentenced to 121 months; and Santos Trevino (aka “Dedos,” and “Beatles”), age 20, was sentenced to 120 months.
Co-defendant Alexander Garza (aka “Animal”), age 35, is pending sentencing in May; and 39-year-old Tony Berlanga (aka “Tony”) is pending trial in May.
This investigation was conducted by the Federal Bureau of Investigation’s Safe Streets Task Force, the Texas Department of Public Safety--Criminal Investigations Division, Homeland Security Investigations (HSI), San Antonio Police Department, Bexar County District Attorney’s Office, New Braunfels Police Department and the 81st Judicial District Attorney’s Office.
U.S. Attorney's Office Files Motion to Dismiss Without Prejudice Charges Against Former Maverick County Purchasing Agent Juan Carlos MoncadaRead the Press Release
In Del Rio today, the United States Attorney’s Office filed a motion to dismiss without prejudice charges against former Maverick County Purchasing Agent Juan Carlos Moncada.
In October, Moncada was indicted for two counts of wire fraud and one count of theft concerning programs receiving federal funds in case number DR12-CR-1613. Since the indictment was returned, the Government has continued its investigation into this case and has determined that all three counts against Moncada should be dismissed. After indictment, IBC Bank advised that the specific checks used to pay for the forklift at issue did not utilize interstate wire facilities when they were deposited and therefore did not affect interstate commerce. Also after indictment, multiple witnesses exculpated Moncada and informed the Government that Moncada had no knowledge of the scheme to steal funds from the county. Although the Government had probable cause to support an indictment, information developed thereafter that leaves the Government without sufficient evidence to prove beyond a reasonable doubt the elements of the offenses charged against Moncada in the indictment.
Three Sentenced to Federal Prison for Straw Purchasing Firearms Destined for MexicoRead the Press Release
In San Antonio, three individuals were sentenced to lengthy federal prison terms in connection with a scheme to traffic and straw purchase AK-47 assault–type firearms destined for Mexico stated United States Attorney Robert Pitman, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Melvin D. King and Homeland Security Investigations (HSI) Special Agent in Charge Vincent Iglio.
This morning, United States District Judge Orlando Garcia sentenced the ringleader, 28–year-old Mexican National Jimmy Torres, to 15 years in federal prison after pleading guilty in November to one count of possession of a firearm by an individual with a domestic violence conviction, one count of possession of a firearm by an illegal alien and 31 counts of aiding and abetting the making of a false statement during the purchase of a firearm. Judge Garcia also sentenced Torres’ co-defendants--30–year-old Ramon Ernesto Armijo of San Antonio and 27-year-old Mathew Arteaga of San Antonio and--to 60 months and 50 months in federal prison, respectively, after pleading guilty to multiple counts of making a false statement during the purchase of a firearm. During today’s hearing, Judge Garcia also sentenced 25-year-old Juanita Arteaga and 39–year-old Virginia Ricarte-Jones each to two years probation after they pleaded guilty last September to making false statements during the purchase of a firearm.
By pleading guilty, the defendants admitted to participating in a scheme from November 2011 to January 2012 whereby approximately 40 AK-47 assault-type firearms were straw-purchased from several San Antonio area gun stores. Court documents reveal that the straw-purchased firearms were destined for Mexico.
Prior to today, 13 other individuals have received sentences ranging from probation to five years in federal prison in connection with this scheme.
This case was investigated by agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) together with Homeland Security Investigations (HSI). Assistant United States Attorney Bettina J. Richardson is prosecuting this case on behalf of the government.Federal Grand Jury in San Antonio Returns Tax Related IndictmentsRead the Press Release
In San Antonio today, a federal grand jury returned three indictments charging San Antonio residents with various tax related offenses announced United States Attorney Robert Pitman and Internal Revenue Service–Criminal Investigation Special Agent in Charge Steve McCollough.
The first indictment charges Sampson Delton Cotten with 23 counts of preparing false and fraudulent income tax returns. According to the indictment, Cotton, doing business as SC Financial Consultant Tax Co., knowingly prepared false income tax returns for approximately ten taxpayers from 2007 to 2010 that included fraudulent amounts of business income or loss as well as exemption amounts. Authorities estimate the total loss due to Cotton’s scheme was over $111,000. Upon conviction, Cotton faces up to three years in federal prison per count.
The second indictment charges Mark Schautteet with one count of tax evasion and three counts of making and subscribing a false income tax return. According to the indictment, from 2001 to 2007, the de facto owner and chief executive officer of Forming Services of Texas, Inc.; Forming Systems of Texas, Inc. and Suspended Forms, Inc., did willfully attempt to evade paying federal taxes withheld from employee wages and Federal Insurance Contributions Act (FICA) taxes. The indictment also alleges that Schautteet failed to file Employer’s Quarterly Federal Tax Returns (Form 941) and provided fraudulent information to a tax return preparer thus causing false income tax returns to be filed for tax years 2004, 2005 and 2006 which understated Schautteet’s actual income. The indictment further alleges that Schautteet attempted to hide assets in a trust which he created and used monies from that trust to pay third party debts. Furthermore, the indictment alleges that Schautteet canceled the sale of a parcel of real estate upon which the Internal Revenue Service had placed a lien in an effort to collect the taxes owed. Upon conviction, Shautteet faces up to five years in federal prison for tax evasion and up to three years in federal prison per count for making and subscribing a false income tax return.
The third indictment charges Lapoe Smith, Jr., with one count of tax evasion and four counts of making and subscribing a false income tax return. The indictment alleges that from August 2005 to May 2011, Smith knowingly evaded paying income tax for the calendar year 2005 on $2 million he failed to claim as income.
Upon conviction, Smith faces up to five years in federal prison for tax evasion and up to three years in federal prison per count for making and subscribing a false income tax return.
Assistant United States Attorney William R. Harris is prosecuting these cases 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.
San Antonio Businessman Pleads Guilty to Wire FraudRead the Press Release
Kenneth William Griffin, age 62, also known as Ted Baker and owner of The Restaurant Repair Company in San Antonio, Texas, pled guilty today before Chief United States District Judge Fred Biery to wire fraud, announced United States Attorney Robert Pitman and Federal Bureau of Investigation Special Agent in Charge Armando Fernandez.
The Indictment alleged that Griffin, as the owner of The Restaurant Repair Company, which performed restaurant equipment service, sales, and installation in San Antonio, perpetrated a scheme to defraud the Texas Comptroller of Public Accounts of sales tax he was required to pay to the State of Texas on a monthly basis. The State of Texas, through the Texas Comptroller of Public Accounts requires businesses that provide sales and services to the public to collect sales taxes and pay all of these collected sales taxes to the State of Texas on a monthly basis. Griffin’s company was required to file a sales tax return each calendar month and report total monthly sales, taxable sales, state tax due, local tax due, and amount being paid to the State. According to the Indictment and Griffin’s plea of guilty, he or an employee at his direction, electronically filed materially false monthly sales tax returns for the Restaurant Repair Company from January 1, 2010, through January 20, 2012. The filings falsely understated the company’s taxable sales by approximately 90%, and Griffin routinely paid the State of Texas only about 10% of the actual sales taxes collected from customers that were due and owing. The scheme to defraud the State of Texas Comptroller of Public Accounts resulted in a loss of approximately $169,052.82 to the State of Texas. In addition to operating the Restaurant Repair Company, Griffin hosted a weekly radio talk show promoting ways to avoid paying sales taxes. Griffin faces up to five years imprisonment, a $250,000 fine, 3 years supervised release, and restitution of the amount of the loss. Sentencing will be at a later date.
The case was investigated by the Federal Bureau of Investigation, Texas Department of Public Safety Criminal Investigation Division, and the Texas Comptroller’s Criminal Investigation Division. Assistant U.S. Attorney Mark Roomberg prosecuted the case.
Horizon City Businesswoman Admits to Participating in Scheme to Misuse Escrowed Mortgage and Tax MoniesRead the Press Release
In El Paso this morning, 59-year-old Lisolette Day “Di Di” Lofton and her stepson, 49-year-old James Douglas Lofton, owners of Southwest Escrow in Horizon City, pleaded guilty to federal charges in connection with the embezzlement of over $1.2 million in escrowed tax monies from more than 400 customers, announced United States Attorney Robert Pitman and FBI Special Agent In Charge Mark Morgan.
On October 4, 2009, Southwest Escrow, a contracted third party collection service for mortgages of owner financed properties, closed without any notice to its customers. In November 2009, the FBI began an investigation after receiving a complaint that the defendants and Southwest Escrow had failed to make tax payments on various properties between 2007 and 2009 and that they had failed to forward principal and interest payments collected the last week they were in business.
Appearing before United States Magistrate Judge Anne T. Berton , Di Di Lofton pleaded guilty to one count of wire fraud; James Lofton, one count of misprision of felony. By pleading guilty, Di Di Lofton admitted that from 2007 to 2009, she provided short term loans, including wiring approximately $225,000, using Southwest Escrow monies to two financially struggling companies to which she also served as a bookkeeper: S-Diego, a Mexican cattle company, and Comprehensive Coding Solutions (CCE), a medical coding company in Arizona. According to court records, the companies were able to pay some of the money back to Southwest Escrow, however in 2007, it became apparent that Di Di Lofton had loaned out more of Southwest Escrow’s money than it had available to pay the property taxes of its customers. James Lofton admitted that in 2007, he became aware of Di Di’s actions and assisted in the concealment.
Di Di Lofton remains in custody and James Lofton is on bond. pending sentencing. Di Di Lofton faces up to 20 years in federal prison; James Lofton, up to three years in federal prison. Sentencing has yet to be scheduled.
This investigation was conducted by the Federal Bureau of Investigation. Assistant United States Attorney Adrian Gallegos is prosecuting this case on behalf of the Government.Pair Enter Guilty Pleas to Smuggling Undocumented ImmigrantsRead the Press Release
Defendants attempt to evade law enforcement in February resulted in three deaths
In San Antonio this afternoon, 31-year-old Javier Silva-Morales, a resident of Monterrey, Mexico, and 25–year-old Jose Abram Lopez-Lozano, a resident of Michoacàn, Mexico, pleaded guilty to smuggling undocumented aliens announced United States Attorney Robert Pitman and Homeland Security Investigations (HSI) Special Agent in Charge Vincent Iglio.
Appearing before United States District Judge Xavier Rodriguez, the driver of the vehicle, Silva-Morales, pleaded guilty to one count of smuggling undocumented aliens resulting in death. His accomplice, Lopez-Lozano, pleaded guilty to one count of smuggling undocumented aliens for financial gain. By pleading guilty, both admitted to transporting smuggled undocumented aliens on February 6, 2013, from Falfurrias, TX, to Houston when a Wilson County Sheriff’s deputy attempted to conduct a traffic stop near Poth, TX. A vehicle chase ensued. After losing sight of the vehicle, deputies subsequently discovered several individuals at the end of an open field standing on top of what appeared to be the same vehicle which was now submerged under water. A total of 13 individuals, including both defendants, were apprehended by sheriff’s deputies with assistance from Texas Department of Public Safety troopers. HSI agents later determined that the 13 were in the United States without proper documentation and placed them under arrest. A Texas Department of Public Safety dive team dispatched to the scene recovered three bodies from the bottom of the water near the vehicle.
Silva-Morales faces a prison sentence of 12 and a half years; Lopez-Lozano, up to ten years in federal prison. Both remain in federal custody pending sentencing which is scheduled for 1:30pm on June 26, 2013, before Judge Rodriguez.
This case was investigated by HSI, the Texas Department of Public Safety and the Wilson County Sheriff’s Office. Special Assistant United States Attorney Christina Playton is prosecuting this case on behalf of the Government.
Eagle Pass Man Enters Guilty Plea to Aiding and Abetting Former Maverick County Precinct 2 Commissioner in Bulk Cash Smuggling SchemeRead the Press Release
In Del Rio, 62-year-old Jose Luis Aguilar of Eagle Pass, TX, faces up to five years in federal prison after pleading guilty this morning to aiding and abetting bulk cash smuggling announced United States Attorney Robert Pitman and FBI Special Agent in Charge Armando Fernandez.
Appearing before United States District Judge Alia Moses, Aguilar admitted that on January 4, 2011, he and co-defendant, 28-year-old 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. According to the factual basis filed in the case, Aguilar was carrying $7,000; Gelacio, $6,000. Aguilar also admitted that the money was the proceeds from selling a Ford truck owned by former Maverick County Precinct 2 Commissioner and co-defendant Rodolfo Heredia to individuals associated with the Los Zetas Cartel in Piedras Negras, Mexico. At the behest of Heredia, Aguilar had sold the truck in Mexico. The factual basis further states that after selling the truck, Heredia did not want Aguilar to declare the money to law enforcement when he entered the United States. So, he sent Gelacio to assist Aguilar in transporting the money from Mexico into the United States. Aguilar admitted that he knew he was assisting Heredia in his efforts to smuggle the funds back into the United States without having to declare the funds to the appropriate authorities.
Aguilar and Gelacio have remained in custody since their arrest in October 2012. Sentencing for Aguilar has yet to be scheduled. On January 24, 2013, Gelacio pleaded guilty to the same charge. Gelacio, who faces up to five years in federal prison, is scheduled to be sentenced on July 8, 2013. Heredia is currently scheduled for jury selection on May 21, 2013.
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.
Austin Computer Parts/Accessories Store Owner Pleads Guilty in Tax CaseRead the Press Release
In Austin, Richard Culleton, President of First E-Commerce, Inc. d/b/a Discount Electronics, faces up to five years in federal prison as well as restitution after pleading guilty this afternoon to evading the payment of an estimated $110,000 in corporate income taxes announced United States Attorney Robert Pitman and IRS-Criminal Investigation Special Agent In Charge Steve McCullough.
A two-count Information filed last week alleges that Culleton knowingly caused the filing of the Discount Electronics’ 2006 and 2007 tax returns which underreported the taxable income. Culleton is currently on bond pending sentencing. Sentencing is scheduled for 9:00am on June 6, 2013, before U.S. District Judge Lee Yeakel.
This investigation was conducted by the Internal Revenue Service-Criminal Investigation. Assistant United States Attorney Dan Guess is prosecuting this case on behalf of the Government.
Sentences Handed Down to L.K.G. Enterprises, Inc. and Former President Sonny Garcia in El Paso Corruption InvestigationRead the Press Release
In El Paso this morning, former L.K.G. Enterprises, Inc., (LKG) president Ruben “Sonny” Garcia, Jr., was sentenced to four years in federal prison followed by three years of supervised release for conspiring to embezzle federal program funds announced United States Attorney Robert Pitman and Federal Bureau of Investigation Special Agent in Charge Mark Morgan.
United States District Judge Frank Montalvo also sentenced LKG to five years probation during which time the corporation is prohibited from receiving any government contract. Judge Montalvo also ordered Garcia and LKG to jointly and severally pay $1.1 million restitution--$550,000 each to El Paso County and the Substance Abuse and Mental Health Services Administration (SAMHSA). Finally, Judge Montalvo ordered that Garcia surrender by May 7, 2013, to federal authorities to begin serving his prison term.
In July 2012, Garcia and LKG pleaded guilty to conspiracy to commit theft or embezzlement of federal program funds. By pleading guilty, Garcia admitted that he conspired with his co-defendant in this case, former Aliviane Chief Executive Officer Cirilo “Chilo” Lara Madrid, to pay a total of $24,000 in bribes to former El Paso County Judge Dolores Briones for her help and assistance to LKG with an El Paso County contract it was awarded to evaluate a health program for severely mentally handicapped and emotionally disturbed children in El Paso County. The program, Border Childrens’ Mental Health Collaborative (BCMHC), was funded by a 5-year federal grant valued at over $9 million. Garcia also admitted that from January 2006 until November 2006, LKG failed to provide (BCMHC) $50,000 in monthly donated services towards the efforts of the BCMHC as promised and required under the grant.
“It’s always an outrage when individuals seek to corrupt public officials for personal gain, but this case is particularly galling in that the intended beneficiaries of the program that was the subject of the crime were mentally and emotionally challenged children,” stated U.S. Attorney Robert Pitman. “An important element of criminal punishment is that of shaming, and it is my hope that this sentence sends a clear message that the perpetrators of this sort of crime are in fact victimizing real people, not just some abstract public trust.”
In December, a jury convicted Madrid of one count of conspiracy to steal or embezzle federal program funds, one substantive count of theft of embezzlement of federal program funds and one count of conspiracy to commit mail fraud and the deprivation of honest services. Madrid faces up to five years in federal prison on the embezzlement conspiracy charge; up to ten years in federal prison on the substantive embezzlement charge; and, up to 20 years in federal prison on the mail fraud conspiracy charge. His sentencing date is April 15, 2013.
“Any act of corruption cuts to the core of our justice system but nothing shatter’s the public’s confidence more than the actions of Garcia – a man who put his personal greed in front of those who needed the most – our children,” stated FBI Special Agent in Charge Mark Morgan, El Paso Division.
This investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorneys Juanita Fielden and William F. Lewis, Jr., are prosecuting this case on behalf of the Government.
Two Sentenced to Federal Prison for Roles in 2010 Wedding Murders in Juarez, MexicoRead the Press Release
In El Paso, 23-year old Gonzalo Delgado-Chavez of Namiquipa, Chihuahua, Mexico, was sentenced to
262 months in federal prison for his role in the kidnapping and murder of three individuals during a
wedding ceremony in Juarez, Mexico in May of 2010 announced United States Attorney Robert Pitman,
Drug Enforcement Administration Special Agent in Charge Joseph M. Arabit, El Paso Division and
Federal Bureau of Investigation Special Agent In Charge Carol Lee, Albuquerque Division.In addition to the prison term, U.S. District Judge David Briones ordered that Delgado be placed
under supervised release for a period of five years after completing his prison term. He was also
ordered to pay a $2,000 fine.On October 18, 2012, Delgado pleaded guilty to one count of conspiracy to commit murder on foreign
soil. By pleading guilty, Delgado admitted that he and co-defendant, 25-year-old Irvin Enriquez,
were responsible for the kidnapping and subsequent murder of the groom, Rafael Morales-Valencia, a
U.S. citizen, his brother and best man, Jaime Morales-Valencia, a legal Permanent Resident Alien,
and their uncle, Guadalupe Morales- Arreola, a B1/B2 visa holder and citizen of Mexico during the
ceremony on May 7, 2010, at El Senor de la Misericordia Catholica church in Juarez.According to statements provided at sentencing, on April 10, 2010, assassins working for the
Vicente Carrillo Fuentes drug trafficking organization, “La Linea,” murdered Enriquez’s father
based on his association with the Sinaloa Cartel. Based on the false belief that the victims were
part of La Linea and that Guadalupe Morales- Arreloa worked for the person responsible for his
father’s death, Enriquez solicited the assistance of Jose Antonio Torres-Marrufo and his purported
team of assassins to exact revenge. Delgado admitted that he traveled from El Paso to Juarez at
the request of Enriquez and identified the victims for Torres-Marrufo’s assassins.On February 28, 2013, Judge Briones sentenced Enriquez to 30 years in federal prison followed by
five years of supervised release and ordered that Enriquez pay a $2,000 fine. Enriquez pleaded
guilty to the charge of conspiracy to kill in a foreign country on November 9, 2012. By pleading
guilty, Enriquez admitted to conspiring with Delgado and others to assist co-conspirators in the
kidnapping and murder plot.“The prosecution and punishment of Mr. Delgado-Chavez highlights our commitment to use every means
to track down and hold accountable those who perpetuate the horrifying cycle of violence associated
with drug trafficking, both in this country and in Mexico,” stated U.S. Attorney Robert Pitman.“Violent acts carried out on behalf of drug trafficking organizations affect citizens on both sides
of the border. Because the safety of our communities is our top priority, DEA and its law enforcement partners remain steadfast in our pursuit of those responsible for the trafficking of illegal drugs throughout the region as well as related violence in neighboring Ciudad Juarez,” stated Drug Enforcement Administration Special Agent in Charge Joseph M. Arabit, El Paso Division.“This multi-agency investigation dealt a significant blow to the violent Sinaloa drug trafficking organization and has made our communities safer. This investigation and prosecution were very important to the families of the victims from the State of New Mexico. They deserved justice for the loss of their loved ones. I would like to thank the many agencies that assisted the FBI's Las Cruces Southwest Border Hybrid Squad in this investigation, especially the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Las Cruces-Dona Aña Metro Narcotics Task Force,” stated Federal Bureau of Investigation Special Agent in Charge Carol Lee, Albuquerque Division.
U.S. Attorney Pitman also expressed his appreciation to U.S. Attorney Kenneth Gonzalez and the District of New Mexico for their assistance in this prosecution as well as to the Drug Enforcement Administration and the Federal Bureau of Investigation for their investigation.
Family Medicine Clinic in Harker Heights Settles False Claims Matter for $430,000Read the Press Release
United States Attorney Robert Pitman announced that in Waco, Dr. Bola Elemuren, a family practitioner d/b/a the Family Medicine Clinic (FMC) in Harker Heights, TX, along with her husband and office manager, John Ogunmuyiwa, have agreed to pay $430,000 to settle allegations of federal False Claims Act/Health Care Fraud violations involving the submission of false claims for payment to the TRICARE, Medicare and Medicaid programs.
The settlement agreement resolves allegations that, from 2003 to 2008, these defendants knowingly overcharged TRICARE for automated laboratory tests that diagnose the cause of vaginitis/bacterial vaginosis. The automated laboratory test at issue is a single procedure that must be billed under an inclusive billing code at a pre-determined rate. The agreement settles the claim that defendants “unbundled” and inflated their charges by separately billing the test under multiple CPT codes, at a higher total cost to the TRICARE program. The United States asserted that the unbundled claims defendants submitted made it appear, falsely, as if they had performed more than one test and, as a result, were entitled to more than one payment from the government.
The settlement agreement also resolves allegations that, from 2008 to 2012, the defendants knowingly billed TRICARE, Medicare, and Medicaid for diagnostic x-rays performed by unqualified and improperly trained personnel.
Following the United States’ investigation, the defendants agreed to settle the case for $430,000 without litigation. The settlement agreement is not an admission of liability by Dr. Elemuren, Ogunmuyiwa or FMC.
This matter was investigated by agents with the Department of Defense Criminal Investigative Service. Assistant United States Attorney John LoCurto handled the matter for the Government.
TRICARE is a federally funded statutory medical benefits program for military personnel, their spouses, and their dependents. Medicare is a federally funded program that covers the cost of medical care for individuals who are eligible based on their age, disability, or affliction with end-stage renal disease. Medicaid covers the cost of medical care for eligible low income individuals. The federal and state governments jointly fund the Medicaid program.Eagle Pass Contractor Enters Guilty Plea in Connection with Maverick County Bribery, Kickback and Bid-rigging SchemeRead the Press Release
In Del Rio, Texas, Eduardo De La Garza, owner of Rio Bravo Construction in Eagle Pass, faces up to ten years in federal prison after pleading guilty this morning to paying a bribe to an agent of an organization receiving federal funds in connection with an alleged bribery, kickback and bid-rigging scheme in Maverick County announced United States Attorney Robert Pitman and FBI Special Agent in Charge Armando Fernandez.
Appearing before United States Magistrate Judge Victor Garcia, De La Garza admitted that in May 2011, he submitted a $19,800 bid to Maverick County to construct a concrete pad at the intersection of Winsor Avenue and Bianca Road in Precinct 4. DeLaGarza further admitted that he has never constructed the pad even though he received two checks from Maverick County--a $9,900 check to commence work and then $9,900 check for the completion of the concrete pad. Furthermore, DeLaGarza admitted that he made a cash payment to an employee working in the Maverick County Auditor’s Office for each check he received. According to court records, both checks were issued to De La Garza without undergoing the appropriate internal review process by Maverick County.
DeLaGarza 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 Attorney Michael Galdo is prosecuting this case on behalf of the Government.
In 2010 and 2011, Maverick County received hundreds of thousands of federal dollars as part of Operation Stonegarden, a federal grant program that provides funding to state, local, and tribal law enforcement agencies to enhance their capabilities to jointly secure U.S. borders and territories.