Western District of Texas
Press releases recorded for this federal judicial district.
Four Sentenced in Connection with El Paso Area Drug Distribution SchemeRead the Press Release
In El Paso, four individuals have been sentenced for their roles in a cocaine distribution ring that operated in El Paso and southern New Mexico announced United States Attorney Robert Pitman and Drug Enforcement Administration Special Agent in Charge Joseph M. Arabit, El Paso Division and Pecos Valley (NM) Drug Task Force Commander Carroll A. Caudill, II.
This afternoon, U.S. District Judge David C. Guaderrama sentenced 53–year-old Edward Villa of Carlsbad, NM, to six years in federal prison followed by four years of supervised release. Judge Guaderrama also ordered that Villa pay a $1,000 fine. Last month, Judge Guaderrama sentenced Villa’s codefendants--56-year-old Tony S. Garcia of Las Cruces, NM, and 50–year-old David Lopez of Malaga, NM–to 90 months and 37 months in federal prison, respectively. Tony Garcia’s nephew and fourth defendant in this case, 27-year-old of Gabriel M. Garcia of Las Cruces, NM, received five years probation after pleading guilty to one count of misprision of felony in connection with the scheme.
In October, Villa, Lopez and Tony Garcia all pleaded guilty to conspiracy to possess with intent to distribute cocaine. By pleading guilty, the defendants admitted that in May 2012, Tony Garcia together with Gabriel Garcia transported approximately two kilograms of cocaine from El Paso to Villa and Lopez in Carlsbad, NM. According to court documents, during the exchange, Villa paid $24,000 to Tony Garcia for the cocaine. Subsequently, traffic stops were conducted on both Garcia and Villa’s vehicles where authorities seized the cocaine and cash.
In a related matter, 35-year-old Cirilio Cortez of Carlsbad, NM, was sentenced in January to 121 months in federal prison followed by eight years of supervised release and ordered to pay a $5,000 fine for his role in the cocaine distribution scheme. In addition, U.S. District Judge David Briones ordered that Cortez pay a $117,000 monetary judgment to the Government. On April 27, 2012, Cortez pleaded guilty to one count of conspiracy to possess with intent to distribute cocaine. By pleading guilty, Cortez admitted that he distributed over 50 kilograms of cocaine in the southern part of New Mexico.
“The Pecos Valley Drug Task Force is extremely proud of the working relationship that we have with the United States Attorney’s Office and the Drug Enforcement Administration. This partnership has insured another successful prosecution of those individuals who believe that they are above the law and chose to sell drugs in our community. We will continue to work with United States Attorney’s Office and Drug Enforcement Administration to keep our children and our community safe and these predators off the street,” stated Commander Carroll A. Caudill, II, Pecos Valley Drug Task Force.
The case was investigated by DEA agents together with the Pecos Valley Drug Task Force in Carlsbad, New Mexico. Assistant United States Attorney Daniel Crumby prosecuted this case on behalf of the Government.
Former Laredo Police Officer SentencedRead the Press Release
On Wednesday, March 6, 2013, former Laredo Police Officer Eliseo Montes, Jr., age 33, was sentenced to 20 years imprisonment for his involvement in a conspiracy to distribute large amounts of marijuana, announced U.S. Attorney Robert Pitman, Western District of Texas. The case was investigated by the Internal Revenue Service(IRS) Criminal Investigation Division, the Irving Police Department, the Federal Bureau of Investigation, the Department of Homeland Security Immigration and Customs Enforcement—Homeland Security Investigations (HSI), the Waco Police Department, and the Laredo Police Department.
A federal jury in Waco, Texas, found Montes guilty of two counts of conspiracy to possess with intent to distribute marijuana and conspiracy to commit money laundering on December 20, 2012. On Wednesday, United States District Judge Walter S. Smith, Jr., sentenced Montes terms of imprisonment of 240 months on each count to run concurrently, and a $1,000 fine on each count. Judge Smith remanded Montes to the custody of the U.S. Marshals Service following sentencing.
According to court records, members of the conspiracy acquired marijuana from sources in Mexico and distributed it in Waco and Dallas, Texas, as well as other states. Evidence at trial established that Montes invested in quantities of the marijuana. In January 2009, while employed as a Patrol Sergeant with the Laredo Police Department, Montes assisted members of the conspiracy by staging a traffic stop to help two conspirators avoid paying a debt they owed for marijuana. Montes and the coconspirators staged the stop to make it appear to the marijuana supplier that law enforcement had seized monies purportedly intended to pay the marijuana debt. Montes was paid for his assistance. The conspirators conducted various financial transactions with various banking institutions to conceal the profits from the sale of marijuana.
Assistant United States Attorney Mary Kucera prosecuted this case on behalf of the Government.Federal Authorities Arrest Eagle Pass Contractor in Connection with Maverick County Bribery, Kickback and Bid-rigging SchemeRead the Press Release
In Eagle Pass, Texas, Federal Bureau of Investigation agents arrested Jose Telles, Jr, operator of 4x4 Construction, 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 43-year-old Eagle Pass resident with one count of paying a bribe to an agent of an organization receiving federal funds. The indictment alleges that in November 2009, Telles submitted a $30,200 bid to Maverick County to construct inlets and junction boxes in Precinct 1 of Maverick County. Telles was awarded the contract by Maverick County after agreeing to pay half of his profits—$5,000—to a Maverick County Commissioner for being awarded the contract. 4x4 Construction received a $15,100 check in November 2009 and a second $15,100 check in June 2010; in return Telles paid the Maverick County Commissioner.
Upon conviction, Telles 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.Paige, Texas, Man Pleads Guilty to Making A False Claim to FEMA in Connection with Relief Efforts After Labor Day 2011 Wildfires in Central TexasRead the Press Release
On Monday, March 4, Manuel Hernandez, age 53, appeared in federal court and pleaded guilty to violating the federal False Claims Act, Title 18 U.S. Code Section 287, announced United States Attorney Robert Pitman and James K. Beauchamp, Regional Special Agent in Charge, Department of Homeland Security Office of Inspector General (DHS OIG). This is the latest development in one of four pending criminal cases alleging fraudulent applications for benefits to the Federal Emergency Management Agency (FEMA) in connection with relief efforts following the Labor Day 2011 wildfires in Bastrop and other parts of Central Texas.
In court, Hernandez admitted that he made a false claim for housing benefits to FEMA in the wake of the
wildfires in September 2011. When Hernandez applied for the benefits, he told FEMA that his primary
residence had burned in the fires. The Paige, Texas, home that Hernandez identified as his residence had
actually burned, but Hernandez was not living there when the wildfires destroyed it and had not lived there for a number of months. Hernandez was living in Austin at the time. As a result of the false claim, Hernandez received over $30,000 from FEMA.
Conviction under the False Claims Act subjects Hernandez to a possible prison term of up to five years,
repayment of the money he obtained illegally from FEMA, and a fine up to $250,000. Hernandez will be
sentenced by United States District Judge Sam Sparks.
This case was investigated by DHS OIG agents. Assistant United States Attorney Alan Buie is prosecuting this case on behalf of the Government.Federal and State Authorities Arrest Del Rio-based Texas Mexican Mafia Members on Federal ChargesRead the Press Release
United States Attorney Robert Pitman, Federal Bureau of Investigation (FBI) Special Agent in Charge Armando Fernandez, Homeland Security Investigations (HSI) Acting Special Agent in Charge Vincent Iglio, Drug Enforcement Administration (DEA) Special Agent in Charge Javier Pena, and Texas Department of Public Safety Director Steven McCraw announced today that seven Del Rio, Texas-based members and associates of the Texas Mexican Mafia (TMM) have been arrested based on a federal indictment charging Racketeer Influenced and Corrupt Organizations (RICO) Act violations as well as narcotics trafficking and firearms offenses. An eighth TMM associate was arrested for Misprision of a Felony. A ninth TMM associate was indicted for cocaine trafficking in a separate indictment and remains at large.
Those arrested, and charged by indictment include: 43-year-old Jesus Meza, Jr.; 43-year-old Jose Cardona, aka “Tinga”; 46-year-old Roberto Villarreal, aka “Flaco”; 40-year-old Ricardo Zapata, aka “Richie”; 29-year-old Daniel Rosario Lara, aka “Diablo”; 20-year-old Joel Costilla, aka “Sharky”; 26-year-old Joe Lee Jimenez; 21-year-old Ray Salgado; 20-year-old Jessica Meza. 29-year-old Pedro Armando Cardona remains at large.
A federal grand jury indictment, returned on February 27, 2013, and unsealed today, alleges that since June 1, 2010, the seven defendants charged with conspiring to violate the RICO Act were members or associates of the TMM and engaged in a pattern of extortion, attempted murder, attempted kidnapping, narcotics trafficking, and gun smuggling. The TMM is alleged to have transported bulk shipments of marijuana on behalf of a narcotics distributer based in Mexico affiliated with the Los Zetas Drug Trafficking Organization and supplied firearms to narcotics traffickers based in Mexico. The indictment also alleges that the defendants conspired to extort money from narcotics traffickers operating in Del Rio through the coercive collection of a ten percent drug tax, also known as “the dime.” Collection of “the dime” was enforced by robbery, serious bodily injury or other acts of violence.
The indictment also charges defendants Meza, Lara, and Costilla with conspiracy to possess with intent to distribute more than 100 kilograms of marijuana; defendants Meza, Cardona, Salgado, Costilla, and Jimenez with possession with intent to distribute less than 500 grams of cocaine; defendants Meza, Villarreal, and Costilla with smuggling an AR-15 style assault rifle to Mexico; and defendant Meza is charged with being in possession of six assault rifles after previously being convicted of a felony offense.
Upon conviction, the defendants face up to 20 years in federal prison on the RICO charge; between 5 and 40 years in federal prison for the marijuana charge; up to 20 years in prison on the cocaine charge; and up to 10 years in prison for each firearm charge.
Jessica Meza is facing two counts of Misprision of a Felony—alleging that she knowingly concealed the drug distribution crimes of others—and faces up to three years in prison for each count.
An additional indictment charges Pedro Armando Cardona with conspiracy to possess with intent to distribute cocaine as well as possession with intent to distribute cocaine. He faces up to 20 years in federal prison.
All eight defendants in custody had their initial appearance before Magistrate Judge Victor Garcia today. All eight were detained pending a detention hearing set for 9:00am on Friday March 8, 2013.
According to FBI Special Agent in Charge Fernandez, "Today's arrests confirm our on-going and collective efforts to continue the dismantling of the Texas Mexican Mafia wherever we find them operating."
"Today’s arrests show our collective resolve in Del Rio to attack and dismantle these dangerous street gangs," said Vincent Iglio, Acting Special Agent in Charge of HSI San Antonio. He went on to say that, "HSI remains committed to identifying gang members and removing them from the streets in the name of public safety.”
This investigation was conducted by the Federal Bureau of Investigation together with Homeland Security Investigations, the Texas Department of Public Safety--Criminal Investigations Division, and the Drug Enforcement Administration. The Bureau of Alcohol, Tobacco, Firearms, and Explosives, the U.S. Marshals Service, and U.S. Customs and Border Protection also assisted in the investigation. This case will be prosecuted in the Del Rio Division of the Western District of Texas.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.Federal Jury Convicts Austin Attorney Marc G. Rosenthal in Connection with South Texas Bribery SchemeRead the Press Release
In Corpus Christi, a federal jury convicted 51–year-old Austin attorney Marc Garrett Rosenthal of federal charges related to a bribery scheme in South Texas announced United States Attorney Robert Pitman, Federal Bureau of Investigation Special Agent in Charge Armando Fernandez, San Antonio Division, Drug Enforcement Administration Special Agent in Charge Javier Pena, Houston Field Division, and Brownsville Police Chief Carlos Garcia.
After a four week-long trial, jurors convicted Rosenthal of conspiring to bribe a State District Judge, bribe witnesses in both state and federal court cases, file fraudulent personal injury cases in both state and federal courts and deprive the citizens of Cameron County, Texas, of the right to honest services of an elected official.
Evidence presented at trial revealed that from November 2005 until December 2009, Rosenthal and others, including 404th Judicial District Court Judge Abel Corral Limas and former state legislator and attorney Jose Santiago “Jim” Solis, participated in a scheme in which Rosenthal directly, or facilitated by Solis, paid money and other considerations to Limas which resulted in favorable court rulings for Rosenthal & Watson clients.
The evidence also revealed that Rosenthal directed others to pay certain individuals, including funeral home directors and a public employee, for the referral of plaintiff’s personal injury cases; make arrangements to manipulate the random case assignment system at the Cameron County District Clerk’s Office so that cases were filed in Courts preferred by Rosenthal & Watson; and, pay witnesses to provide false testimony and statements.
Rosenthal was convicted of one count of conspiracy to violate the Racketeering Influenced Corrupt Organization (RICO) statute; five counts of mail fraud; three counts of tampering with witnesses or proceedings; one count of extortion; and, three counts of mail fraud, aiding and abetting and deprivation of honest services.
Rosenthal faces up to 20 years in federal prison per count at sentencing scheduled for June 3, 2013, 8:30 a.m. before U.S. District Judge Andrew Hanen in Brownsville. The United States is also seeking the forfeiture of approximately $5.95 million from Rosenthal in relation to the criminal case.
This investigation was conducted by the Federal Bureau of Investigation, Drug Enforcement Administration and the Brownsville Police Department. Southern District of Texas Assistant United States Attorneys Michael Wynne and Oscar Ponce are prosecuting this case on behalf of the Government.Killeen Man Sentenced to 40 Years in Federal Prison for Sex Trafficking of ChildrenRead the Press Release
In Waco this afternoon, United States District Judge Walter S. Smith, Jr., sentenced 27-year-old Jerome
Maurice Cole of Killeen, TX, to 40 years in federal prison for sex trafficking of children announced United
States Attorney Robert Pitman and Texas Attorney General Greg Abbott.
In addition to the prison term, Judge Smith ordered that Cole pay a $5,000 fine and be placed under supervised release for a period of ten years after completing his prison term.
“Trafficking children in the sex trade is an unspeakable crime. We will pursue and vigorously prosecute those who engage in such outrageous conduct to the fullest extent of the law,” stated United States Attorney Pitman.
On November 29, 2012, Cole pleaded guilty to the charge. By pleading guilty, Cole admitted that he operated a prostitution venture from November 2011 until August 2012 involving minor females utilizing various technologies, including a personal computer, multiple cell phones, the Internet, and the website Backpage.com, to photograph, post prostitution advertisements, recruit new girls, and communicate with purchasers. On May 15, 2012, officers with the Killeen Police Department responded to a call that a 16-year-old runaway was frightened to leave Cole's residence and needed assistance in escaping. Killeen Police Department rescued the minor from Cole's residence and requested an investigation from the Office of the Texas Attorney General's human trafficking unit. During the course of the investigation, authorities identified another 16-year-old minor as being sexually trafficked by Cole, as well as a third minor who was being actively recruited by Cole.
Cole has remained in custody since his arrest on August 15, 2012, when he arrived at an agreed upon location in Killeen to pick-up the third minor.
This case was investigated by the Office of the Texas Attorney General and the Killeen Police Department with assistance from the United States Marshals Service. Assistant United States Attorney Mary Kucera and Special Assistant United States Attorney/Assistant Attorney General Geoff Barr prosecuted this case on behalf of the Government.Former El Paso Businessman Sentenced to Federal Prison for Role in Ammunition Smuggling SchemeRead the Press Release
This morning in El Paso, 49-year-old Hector Ayala, former owner of Uniforms of Texas, was sentenced to two years in federal prison for his role in a scheme to smuggle ammunition and other prohibited items into the Republic of Mexico announced United States Attorney Robert Pitman and Homeland Security Investigations (HSI) Special Agent in Charge Dennis Ulrich in El Paso.
In addition to the prison term, United States District Judge David Briones ordered that Ayala perform 200 hours of community service and be placed under supervised release for a period of three years after completing his prison term. Furthermore, Judge Briones ordered that Ayala pay a $200,000 monetary judgment as well as forfeit to the Government 8,600 rounds of ammunition, $103,000 in U.S. Currency as well as approximately $1 million worth of military and law enforcement equipment seized by authorities during this investigation.
In December 2012, Ayala pleaded guilty to one count of facilitating the smuggling of goods from the United States. By pleading guilty, Ayala admitted that from September 1, 2009, to December 3, 2011, he concealedand facilitated the transportation of multiple calibers and quantities of ammunition; approximately 300 high capacity ammunition magazines and drums; and, approximately 800 ballistic vests with ceramic plates knowing that the items were intended to be exported from the United States into Mexico.
Dennis A. Ulrich, special agent in charge for HSI El Paso, said this case goes to the core of HSI’s mission,
which is to disrupt and dismantle transnational criminal organizations. “Our special agents are charged with investigating and arresting individuals who threaten national security and public safety by violating U.S. laws,” said Ulrich. “Successful prosecution of criminals who illegally export weapons and ammunition to Mexico also helps secure our border.”
The case was investigated by ICE-HSI agents together with the Bureau of Alcohol, Tobacco, Firearms and
Explosives as well as the El Paso Police Department Stash House Unit. Assistant United States Attorney Greg McDonald prosecuted this case on behalf of the Government.Federal Grand Jury Indicts El Paso Attorney Marco Delgado in Connection with A Multi-million Dollar Fraud/Money Laundering SchemeRead the Press Release
In El Paso today, a federal grand jury returned a 17-count indictment charging 46-year-old El Paso attorney Marco Antonio Delgado a.k.a. Marco Delgado Licon in connection with a multi-million dollar wire fraud and money laundering scheme announced United States Attorney Robert Pitman and Homeland Security Investigations Special Agent in Charge Dennis Ulrich.
The indictment charges Delgado with two wire fraud counts and 15 money laundering counts. According to the indictment, in January 2010, Delgado, as a legal representative of FGG Enterprises, Inc. (FGG) signed a $121 million contract between FGG and the Comision Federal de Electricidad (CFE), a Mexican-state-owned utility company, for the acquisition and installation of equipment at the Agua Prieta II power plant located in Agua Prieta, Sonora, Mexico. Pursuant to the agreement, payments from CFE to FGG were to be deposited into a FGG bank account located in El Paso. The indictment alleges that Delgado, for the purpose of personal enrichment and without the consent of the sole owner of FGG, submitted a fraudulent written request to the Banco Nacional de Comercio Exterior in Mexico which caused two wire transfers—one on March 8, 2010, in the amount of $20 million and one on July 6, 2010, in the amount of $12 million—to be deposited into a bank account he controlled located in the Turks and Caicos Islands.
The indictment further alleges the Delgado subsequently wire transferred approximately $1.15 million
from the Turks and Caicos Island bank account to bank accounts in El Paso, Taos, NM; and Pittsburg, PA, in order to conceal or disguise the nature, location source ownership or the control of the proceeds from his scheme.
The indictment also contains a notice of criminal forfeiture in which the Government is seeking the forfeiture of proceeds traceable to the indicted offenses, namely, $32 million in U.S. Currency, the defendant’s residence and furnishings in El Paso and condominium in Taos, NM; plus two vehicles.
“HSI investigates crimes and traces illegal activity around the globe, and as this case shows, it doesn’t matter in which countries individuals commit crimes,” said Dennis A. Ulrich, special agent in charge for HSI El Paso. “When individuals steal money from foreign governments, and attempt to use the United States infrastructure to launder those funds, HSI is committed to stop that activity.”
Upon conviction, Delgado faces up 20 years in federal prison per count. Delgado has remained in federal
custody since his arrest in November 2012 based on an unrelated federal money laundering conspiracy charge contained in a separate indictment (EP12CR2106). That indictment alleges that Delgado is responsible for attempting to launder approximately $1 million in alleged drug distribution proceeds.
This indictment resulted from an investigation by the Homeland Security Investigations (HSI). Assistant
United States Attorney Juanita Fielden 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.Eagle Pass Police Officer Enters Guilty Plea in Connection with Stolen Firearm CaseRead the Press Release
In Del Rio, 40-year-old Eagle Pass police officer Eriberto Leija faces up to ten years in federal prison and a
maximum $250,000 fine after pleading guilty this afternoon to one count of possession of a stolen firearm announce United States Attorney Robert Pitman and FBI Special Agent In Charge Armando Fernandez.
Appearing before United States Magistrate Judge Collis White, Leija admitted that on July 15, 2012, he
possessed a stolen firearm, namely an M1 .30 caliber rifle with a folding stock. According to the factual basis filed in the case, Leija claimed to have discovered the firearm in a vacant lot in Eagle Pass while investigating a drive-by shooting incident. Furthermore, Leija admitted to taking a picture of it, then sending that picture to a co-worker in an attempt to sell the firearm for $500. The factual basis further states that on the following morning, Leija contacted EPPD dispatch and requested a firearms check through the NCIC database to determine if the rifle was stolen. The query returned a positive hit indicating that the weapon had been stolen. During questioning by EPPD personnel, Leija stated that he was not in possession of the firearm, that it was in Mexico, and that he queried it as a favor to a Mexican Federal Police officer.
The factual basis also states that Leija attempted to cover up the fact that he knowingly was in possession of a stolen firearm by soliciting a Mexico Federal Police officer to create a false document purporting to transfer the custody of the stolen firearm. When confronted by authorities with the solicitation and photo he sent to his coworker, Leija admitted that he lied about the scheme and the fact that the weapon had been in his possession the entire time.
Leija is currently on bond pending sentencing. Sentencing has yet to be scheduled.
This investigation was conducted by the Federal Bureau of Investigation together with the Eagle Pass Police Department. Assistant United States Attorney Jay Hulings is prosecuting this case on behalf of the
Government.19 Arrested in Connection with Austin-based Cocaine Distribution and Bulk Cash Smuggling OperationRead the Press Release
Federal, state and local authorities have arrested 19 individuals in connection with a cocaine distribution and bulk cash smuggling conspiracy based in Austin announced United States Attorney Robert Pitman, Drug Enforcement Administration Special Agent in Charge Javier Pena, Houston Division, and Texas Department of Public Safety Director Steve McCraw. A list of the arrested defendants is below.
A two-count federal grand jury indictment (A13cr067), returned on Tuesday and unsealed today, charges the defendants with one count of conspiracy to possess with intent to distribute cocaine. The indictment also charges (6) defendants with one count of bulk cash smuggling. The indictment alleges that from January 2009 to the present the defendants conspired to possess with intent to distribute more than five kilograms of cocaine. According to the indictment, G. R. Custom Body and Paint in Austin, owned by defendant Hugo Gaspar, served as the primary distribution hub for multiple sources of cocaine smuggled into the United States from Mexico. Authorities allege that in addition to distributing cocaine in the Austin area, cocaine was transported to Houston and Dallas as well as Kentucky, Georgia, North Carolina, Florida and Alabama for further distribution. Proceeds from the sale of the cocaine were transported back to Austin and ultimately to Mexico. During this investigation, authorities have seized over $1millon in U.S. Currency and approximately 120 pounds of cocaine attributed to this cocaine distribution network.
A separate, but related, federal grand jury indictment (A13cr027) returned last month in Austin charges 20–year-old Erick Rodriguez-Aguilar and 19–year-old Julio Ramon Sandoval-Arizmendi for their roles in this operation. Both are charged with one count of possession with intent to distribute five kilograms or more of cocaine. Rodriguez and Sandoval both remain federal custody.
Upon conviction of the drug charge, the defendants face between ten years and life in federal prison; of the bulk cash smuggling charge, they face up to five years in federal prison.
“The investigation uncovered one of the most significant drug organizations in the Austin area in terms of sheer quantities of cocaine being distributed, and the convoluted distribution web which facilitated the large-scale trafficking operation,” stated DEA-Houston Division Special Agent in Charge Javier Pena.
“Today marks a milestone in disrupting a major Mexico-based cocaine trafficking organization that supplies narcotics to the Central Texas area and beyond. Thanks to the efforts of DPS Criminal Investigations Division agents working in conjunction with our federal and local law enforcement partners, our neighborhoods are safer today with these individuals off our streets and behind bars,” stated Lt. Colonel David Baker, DPS Deputy Director - Law Enforcement Operations.
This case resulted from an investigation by the South Texas High Intensity Drug Trafficking Area (HIDTA) made up of investigators from the following agencies: Drug Enforcement Administration (DEA), Federal Bureau of Investigation (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.
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.
Operation Treasure Lost Defendants
Case number: A-13 cr 067
Name Age Citizenship Indicted Counts
Ubaldo RODRIGUEZ-Perez 41 Mexico 1,2
Santos FLORES-Aviles 24 Mexico 1
Jose Francisco GAONA-Segura 32 Mexico 1,2
Hugo Castillo GASPAR 40 Mexico 1,2
Abel GAONA 34 Mexico 1
Ricardo RAMOS-MUNOZ 40 Mexico 1
Jerrimie Jerome HYDER 26 U.S. 1
Francisco Javier CASTILLO 28 Mexico 1,2
Miguel Angel ELIAS 40 Mexico 1
Eduardo LOZA 26 U.S. 1
Galdino LOZA 28 U.S. 1
**Marlon RAMIREZ-Castro 28 Mexico 1,2
Jose Manuel CARBAJAL 29 U.S. 1,2
**Santos Nieto JAIMES 35 Mexico 1
**Ranferi GARCIA-Jaramillo 28 Mexico 1
**Sergio VALLE-Ramirez 21 Mexico 1
**Ruben CORREA-Sandarte 30 Mexico 1Case number: A-13 cr 027
**Erick RODRIGUEZ-Aguilar 20 Mexico
**Julio Ramon SANDOVAL-Arizmendi 19 Mexico** Were already in custody prior to today’s arrests
Four Sentenced in Connection with El Paso Corruption InvestigationRead the Press Release
In El Paso this morning, former El Paso County Commissioner Larry Medina, El Paso attorney David Escobar, and former Ysleta Independent School District (YISD) Trustees Linda Chavez and Mickey Duntley were sentenced for their roles in a corruption scheme involving healthcare service contracts with AccessHealth, Inc. (ACCESS), announced United States Attorney Robert Pitman and Federal Bureau of Investigation Special Agent in Charge Mark Morgan.
United States District Judge Frank Montalvo sentenced: Escobar and Duntley each to 41 months in federal prison followed by three years of supervised release; Medina, 16 months in federal prison followed by three years of supervised release; and, Chavez, five years probation with 30 days in a halfway house. Judge Montalvo also ordered that Escobar pay a $10,000 fine and $42,077.24 restitution; Medina, a $100,000 fine and $56,700.42 restitution; and Chavez, $9,000 restitution.
Last year, Chavez, Duntley and Escobar pleaded guilty to conspiracy to commit mail/wire fraud and deprivation of honest services; Medina, aiding and abetting mail fraud and deprivation of honest services. By pleading guilty, the four defendants admitted to participating in a deliberate and long-term effort to bribe elected officials in order to insure that ACCESS would receive lucrative healthcare service contracts from El Paso County and YISD.
“Today’s sentencing sends a strong message regarding the FBI’s continued aggressive investigations of individuals in the El Paso community involved in public corruption. The FBI, along with our law enforcement partners, will continue our pursuit of individuals and elected officials who actions violate the public’s trust and confidence,” stated FBI Special Agent In Charge Mark Morgan.
These sentencings are a result of a large scale FBI investigation which began in 2004. To date, 32 individuals have been convicted of federal offenses stemming from the investigation. Four are awaiting trial. Assistant United States Attorneys Debra Kanof, Jose Luis Gonzalez, William F. Lewis, Jr., Juanita Fielden, Chris Skillern and Donna Miller are prosecuting these cases on behalf of the Government.
Pair Sentenced to Federal Prison in Connection with Foreign Currency Exchange Releated Ponzi SchemeRead the Press Release
Scheme resulted in an estimated $10.6 million loss to over 150 investors
In Austin this morning, 43-year-old Christopher Brown Cornett of Buda, TX, and 49–year-old Heidi Beryl Beyer of Scottsdale, AZ, were sentenced to 40 years and six years in federal prison, respectively, for carrying out a Ponzi scheme which victimized more than 150 individuals and resulted in a total estimated loss to investors of over $10.6 million announced United States Attorney Robert Pitman, Federal Bureau of Investigation Special Agent in Charge Armando Fernandez and Internal Revenue Service-Criminal Investigation Special Agent in Charge Steve McCollough.
In addition to the prison terms, United States District Judge Sam Sparks ordered that the defendants jointly and severally pay restitution in the amount of $9,525,031.77. Judge Sparks ordered Cornett to pay an additional $795,701.62 restitution. Furthermore, Judge Sparks ordered that both defendants be placed under supervised release for a period of three years after completing their prison terms.
“Mr. Cornett and Ms. Beyer defrauded investors out of millions of dollars, and the sentences handed down today exemplify the consequences criminals face for such crimes. Investment schemes cause serious damage to victims, both financially and emotionally, and therefore demand serious punishments. My office is committed to bringing white collar criminals to justice, and today’s sentences are evidence of that commitment,” stated United States Attorney Robert Pitman.
In October 2012, Cornett pleaded guilty to one count of conspiracy to commit wire fraud and one count of conspiracy to commit money laundering; Beyer pleaded guilty to one count of wire fraud. By pleading guilty, Cornett admitted that from April 2008 to October 2011, he devised a scheme to obtain money from investors under false pretenses. Beyer joined in the scheme in September 2009. According to court records, the defendants represented to investors that their money would be placed into a common pool of funds that would be invested in foreign currency exchange trades, and that investors would receive the profits of the trades, less a fixed share of the profits for the defendants (usually between 25 to 30% of the profits). These representations were made both orally and in writing, in the form of emails and, eventually, in the form of a Subscription Agreement each investor had to sign.
Information which the defendants failed to disclose to investors included the fact that: Cornett had previously been fired from Morgan Stanley for failure to follow company rules; Cornett was terminated from Brookstreet Securities in 2002 because he had violated securities regulations; on January 8, 2003, the National Association of Securities Dealers (“NASD”) barred Cornett from associating with any member of the NASD in any capacity based on Cornett’s theft of approximately $28,000 of an investor’s money; Cornett was not properly registered as required by the Commodities Exchange Act and CFTC regulations; as well as Cornett’s previous federal conviction in 2003 for five counts of federal bank fraud and the fact that he served two years in federal prison as a result of that prior conviction.
According to court records, the defendants solicited from pool participants a total of approximately $14.6 million during their scheme. The defendants lost approximately $7.3 million of the pool’s funds in foreign currency exchange trading. They used the remaining pool funds for personal enrichment or to make payments to other investors so as to lull those investors into the mistaken belief that their investment was profitable and sound. Court records reflect that Cornett used pool funds to cover gambling losses in Las Vegas which exceeded $600,000 and to purchase a new Chevrolet Corvette.
“This type of scheme threatens our economy and undermines the trust in our financial system,” stated Internal Revenue Service-Criminal Investigation Special Agent in Charge Steve McCollough. “IRS-Criminal Investigation wants to make sure that criminals face the consequences of their actions just as these defendants did.”
“The FBI, IRS-CI and the Western District of Texas United States Attorney's Office recognize the importance of protecting Americans from criminals who steal from victims without violence but through broken promises and deceit. Americans now, more than ever in tough economic times, count on law enforcement to protect them from white collar criminals and to send messages to future fraudsters that these law enforcement agencies will actively pursue them to ensure crime does not pay,” stated Federal Bureau of Investigation Special Agent in Charge Armando Fernandez.
This investigation was conducted by the Internal Revenue Service-Criminal Investigation and the Federal Bureau of Investigation. Assistant United States Attorney Chris Peele prosecuted this case on behalf of the Government.
Federal Jury Convicts Two for Roles in Austin-based Heroin Distribution OperationRead the Press Release
Jose Pardo, age 68, of Austin and Jorge Carrillo, age 45, of Lockhart, TX, both face between ten years and life in federal prison after a jury convicted them yesterday afternoon for their roles in a heroin distribution operation announced United States Attorney Robert Pitman.
The jury convicted Pardo and Carrillo of one count of conspiracy to possess with intent to distribute and to distribute heroin. Evidence presented at trial 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.
Jose Pardo and Jorge Carrillo, along with 12 co-defendants who entered guilty pleas prior to trial, are scheduled to be sentenced at 9:00 a.m. on May 3, 2013, before United States District Judge Sam Sparks in Austin. The alleged ringleader, Amado Pardo, passed away prior to trial.
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.
Federal Criminal Complaint Filed Against Pair for Allegedly Transporting Undocumented ImmigrantsRead the Press Release
Defendants attempt to evade law enforcement resulted in three deaths
In San Antonio this morning, federal authorities filed a criminal complaint charging 31-year-old Javier Silva-Morales, a resident of Monterrey, Mexico, and 25–year-old Jose Abram Lopez-Lozano, a resident of Michoacàn, Mexico, with illegally transporting undocumented aliens announced United States Attorney Robert Pitman and Homeland Security Investigations (HSI) Acting Deputy Special Agent in Charge Monica Mapel.
According to the complaint, the driver, Silva-Morales and his accomplice, Lopez-Lozano, were attempting to transport undocumented aliens yesterday 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 12 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 twelve 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.
Upon conviction, the defendants face up to life in federal prison. Both remain in federal custody at this time.
This criminal complaint resulted from an investigation 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.
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.
El Paso Man Sentenced to Federal Prison in Child Porn CaseRead the Press Release
Defendant was in possession of 5,342 videos and 133,345 images depicting child pornography
In El Paso this morning, 46-year-old Jose Miranda, a former mechanic with the El Paso Independent School District, was sentenced to six years in federal prison followed by a lifetime of supervised release for receipt and possession of material involving the sexual exploitation of children, announced United States Attorney Robert Pitman and Homeland Security Investigations Acting Special Agent in Charge Dennis Ulrich.
In addition to the prison term, Miranda is subject to an undetermined amount of restitution payable to the victims portrayed in the videos. U.S. District Judge Frank Montalvo is expected to rule on the restitution matter in approximately 30 days.
On May 31, 2012, Homeland Security Investigations (HSI) Cyber Crimes Group special agents executed a search warrant at the defendant’s residence and seized several computers and related equipment. According to court records, a forensics evaluation of the seized items revealed the presence of 5,342 videos and 133,345 images of minors engaging in sexually explicit conduct.
On October 22, 2012, Miranda pleaded guilty to one count of receipt of material involving the sexual exploitation of children and one count of possession of such material.
Assistant United States Attorney J. Brandy Gardes prosecuted this case on behalf of the Government.Mike Yassine Enters Guilty Plea in Tax CaseRead the Press Release
In Austin this afternoon, Hussein Ali “Mike” Yassine, age 40, pleaded guilty to engaging in a tax fraud scheme using his Austin nightclubs.
Appearing before United States District Judge Sam Sparks, Yassine pleaded guilty to one count of procuring the preparation of a false Income Tax Return. By pleading guilty, Yassine admitted that in October 2010, he provided a professional tax preparer with false information to be included in Yassine’s 2009 federal Income Tax Return. According to court documents, figures provided by Yassine understated by hundreds of thousands of dollars the actual gross receipts generated by his downtown Austin night clubs--Spill, Qua, Kiss & Fly, Pure and Malaia—in 2009. As a result of his guilty plea, Yassine faces up to three years in federal prison and a maximum $250,000 fine. Sentencing has yet to be scheduled.
Yassine is currently in federal custody. Last month, Yassine was sentenced to 151 months in federal prison after a jury convicted him on money laundering charges. The jury found that in 2008 and 2009, Yassine used several business establishments, including the above mentioned night clubs, to launder over $200,000 in cash, which he believed to be the proceeds of narcotics trafficking.
This investigation was conducted by agents and investigators with the Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation and the Austin Police Department together with the Drug Enforcement Administration, Texas Attorney General’s Office, Texas Alcoholic Beverage Commission and the Texas Comptroller’s Office. Assistant United States Attorneys Gregg Sofer and Alan Buie are prosecuting this case on behalf of the Government.
Federal Grand Jury Indicts Former Police Officer on Drug ChargesRead the Press Release
In Midland today, a federal grand jury returned an indictment charging 38-year-old former Odessa Police officer Jackie Lynn Thompson and five other Odessa, Texas, residents in connection with a methamphetamine distribution conspiracy announced United States Attorney Robert Pitman, Drug Enforcement Administration Special Agent in Charge Joseph D. Arabit, El Paso Division, Federal Bureau of Investigation Special Agent in Charge Mark Morgan, El Paso Division and Midland Police Chief Price Robinson.
The indictment charges Thompson, as well as 36–year-old Jesse Ubaldo Rodriguez, 24-year-old Isai Ramirez, 45-year-old Jaime Yrvegas Castillo, 26-year-old Douglas James Lewis and 48–year-old Ernest Lee McCarty, with one count of conspiracy to possess with intent to distribute methamphetamine. Upon conviction, each defendant faces a mandatory ten years up to life in federal prison.
The indictment alleges that from January 2012 until January 2013, the six defendants conspired to distribute more than 500 grams of methamphetamine. All of the defendants are in federal custody.
This indictment resulted from an investigation by the Drug Enforcement Administration, the Midland Police Department, the Federal Bureau of Investigation, Homeland Security Investigations (HSI), and Texas Department of Public Safety in Midland. Assistant United States Attorney Brandi Young 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.
Defendant Extradited from Mexico to U.S. Based on Federal Defense Article Smuggling ChargesRead the Press Release
Erik Alan Garza, age 25, of Eagle Pass, TX, appeared in federal court this morning in San Antonio following his extradition late Friday from Mexico based on federal smuggling charges filed in the Western District of Texas announced United States Attorney Robert Pitman and Homeland Security Investigations (HSI) Acting Deputy Special Agent in Charge Monica Mapel, San Antonio Division.
Garza is charged by federal grand jury indictment returned in Del Rio in June 2012 with six counts of aiding and abetting the smuggling of goods from the United States. According to the indictment, on various occasions between June 19, 2010, and February 17, 2012, Garza and an accomplice, 32-year-old Eagle Pass resident Rolando Tamayo, illegally attempted to smuggle defense articles into the Republic of Mexico from the United States. Those items included night vision monocular goggles, a thermal goggle, 400 sets of AR-15 front and rear flip-up tactical sights, approximately 5,000 high-capacity assault rifle magazines and approximately 6,000 rounds of ammunition, including 100 rounds of .50 caliber ammunition.
The indictment also charges Tamayo, who remains a fugitive, with two counts of aiding and abetting the smuggling of goods from the United States.
Each charge calls for a maximum sentence of ten years in federal prison upon conviction.
“Gun and drug trafficking fuels violence by criminal organizations and threatens the security of the people along our borders and throughout the country,” said Monica Mapel, acting deputy special agent in charge of HSI in San Antonio. “HSI special agents will continue working jointly with our law enforcement partners to utilize our expertise in import and export enforcement in order to keep our citizens safe and secure.”
This case was investigated by agents with Homeland Security Investigations (HSI) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The Department of Justice Office of International Affairs as well as the United States Marshals Service assisted in Garza’s extradition. 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 defendants are presumed innocent until proven guilty in a court of law.
Former Midland Independent School District Warehouse Operations Buyer Pleads Guilty to Stealing from the DistrictRead the Press Release
Frank Gonzales Carrasco, age 45 and former Warehouse Operations Buyer for Midland Independent School District (MISD), faces up to ten years in federal prison after admitting to stealing construction materials from the school district announced United States Attorney Robert Pitman.
Appearing before U.S. Magistrate Judge David Counts in Midland this morning, Carrasco pleaded guilty to one count of theft concerning programs receiving federal funds. According to the factual basis filed in this case, between July 2009 and January 2012, Carrasco was employed by MISD as the Operations Buyer at the warehouse. His job responsibilities included ordering and managing the inventory necessary to complete work at MISD facilities. By pleading guilty, Carrasco admitted that during his employment, he ordered large amounts of copper pipe and electrical wire on behalf of MISD which exceeded any work orders anticipated by the school district. Carrasco then took the extra copper pipe and electrical wire—more than 18,000 pounds--to Recycle Midland where he recycled it for cash. Carrasco admittedly collected $46,041.71 from Recycle Midland for copper pipe and electrical wire that originally cost MISD more than $140,000. To conceal his scheme, Carrasco hid the theft of the materials by adding pipe or wire to work orders for jobs that did not require it or had already been completed.
In addition to the prison time, Carrasco faces up to a $250,000 fine as well as restitution to MISD. Carrasco is on a $10,000 bond pending sentencing. A sentencing date has yet to be scheduled.
This case was investigated by the Midland Police Department with assistance from Midland Independent School District internal auditors. Assistant United States Attorney V. LaTawn Warsaw is prosecuting this case on behalf of the Government.
Thirteen Former West Texas Prison Employees Indicted for Accepting Bribes in Exchange for Smuggling Contraband into Federal Detention FacilityRead the Press Release
Federal authorities arrested 12 former Ector County Correctional Center (ECCC) guards and one former ECCC employee this morning for allegedly accepting bribes in exchange for smuggling contraband to inmates inside the federal detention facility announced United States Attorney Robert Pitman and Federal Bureau of Investigation Special Agent in Charge Mark Morgan, El Paso Division.
The defendants are individually named in 13 federal grand jury indictments returned on January 23, 2013, and unsealed today. The indictments allege that during 2011 and 2012, the correctional officers, as well as Barbara Garrett, a food service worker, smuggled in contraband to inmates, including cell phones and chargers as well as tobacco and marijuana, in exchange for cash in knowing violation of their official duties. Those indicted and arrested include:
Jovanna Marie Olivarez, age 21, of Odessa;
Matthew Ryan Williams, age 20, of Odessa;
Dennis Earl Newsome, age 63, of Austin, TX;
Charlette Smith, age 46, of Odessa;
Nancy Torres Morales, age 36, of Odessa;
Valerie Ann Arenivas, age 22, of Odessa;
Gabriel Angel Navarette, age 23, of Odessa;
Jennifer Armida Lopez, age 25, of Odessa;
Jessica Lucia Smith, age 33, of Monahans, TX;
Jazmine Desiree Cruz, age 19, of Odessa;
Jonathon Wayne Meza, age 29, of Odessa;
Barbara Jean Garrett, age 52, of Andrews, TX; and,
Ashley Dawn Clark, age 29, of Crane, TX.Each defendant is charged with one count of accepting a bribe. Upon conviction, each defendant faces up to 15 years in federal prison and a maximum $250,000 fine.
This case was investigated by agents with Federal Bureau of Investigation together with investigators from the Odessa Police Department and the Ector County Sheriff’s Office along with cooperation from the United States Marshals Service and ECCC. Assistant United States Attorney John Klassen is prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Andrews Man Pleads Guilty to Receipt of Child PornographyRead the Press Release
United States Attorney Robert Pitman announced that 27-year-old Francisco Jose Cantu, of Andrews, TX, faces five to twenty years in federal prison after pleading guilty to receipt of materials relating to the sexual exploitation of children.
Appearing before United States Magistrate Judge David Counts yesterday, Cantu admitted that in October 2012, he received images of child pornography via the Internet. According to the factual basis filed in this case, Cantu also admitted to distributing images of child pornography via the Internet. On November 29, 2012, Homeland Security Investigations (HSI) agents executed a search warrant at Cantu’s residence and seized several computer devices. A forensics examination of the seized items revealed the presence of more than 600 images of minors engaged in sexually explicit conduct.
Sentencing before United States District Judge Robert A. Junell in Midland has not yet been scheduled.
This case was investigated by Homeland Security Investigations agents. Assistant United States Attorney Austin Berry is prosecuting this case on behalf of the Government.
Yassine Brothers Sentenced to Federal Prison in Money Landering SchemeRead the Press Release
In Austin this morning, brothers Hussein Ali “Mike” Yassine, age 40, and Hadi Ali Yassine, age 36, were sentenced to 151 months and 60 months in federal prison, respectively, for their roles in a money laundering scheme.
In addition to the prison terms, U.S. District Judge Sam Sparks ordered that Mike Yassine pay a $60,000 fine; Hadi Yassine, a $30,000 fine. Judge Sparks also ordered that both defendants be placed under supervised release for a period of three years after completing their prison terms.
On October 12, 2012, following a seven-day trial, a jury convicted Mike and Hadi Yassine of one count of conspiracy to commit money laundering. The jury also convicted Mike and Hadi Yassine of three counts and two counts of money laundering, respectively. The jury found that in 2008 and 2009, Mike and Hadi Yassine used several business establishments, including nightclubs, located in downtown Austin to launder over $200,000 in cash, which they believed to be the proceeds of narcotics trafficking.
This investigation was conducted by agents and investigators with the Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation and the Austin Police Department together with the Drug Enforcement Administration, Texas Attorney General’s Office, Texas Alcoholic Beverage Commission and the Texas Comptroller’s Office. Assistant United States Attorney Gregg N. Sofer is prosecuting this case on behalf of the Government.El Paso Man Sentenced to Federal Prison on Sexual Exploitation ChargesRead the Press Release
United States Attorney Robert Pitman and FBI Special Agent in Charge Mark Morgan announced that in El Paso this morning, 47-year-old Joe Tapia, III, of El Paso, was sentenced to the statutory maximum of 30 years in federal prison followed by a lifetime of supervised release after pleading guilty in October to solicitation of material relating to the sexual exploitation of children.
By pleading guilty, the former Excel Learning Center (ELC) admissions service representative and local church youth minister admitted that he had sexually explicit instant messenger chats with multiple minors on both his work and home computers. Furthermore, Tapia admitted that he recorded video and still images of two children while they were changing clothes prior to a church performance and used those recordings to solicit other sexually explicit images of children.
Tapia has remained in custody since his arrest by special agents with the Federal Bureau of Investigation in May 2012.
This case was investigated by the Federal Bureau of Investigation together with the El Paso Police Department. Assistant United States Attorney J. Brandy Gardes prosecuted this case on behalf of the Government.
Federal Grand Jury Indicts Russell Allen Erxleben in Connection with an Alleged $2.5 Million Ponzi SchemeRead the Press Release
In Austin, federal authorities announced the indictment and arrest this morning of 56–year-old Russell Allen Erxleben for allegedly running a Ponzi scheme that generated more than $2 million.
An eight–count federal grand jury indictment, returned on Tuesday and unsealed today, charges the Dripping Springs, Texas, resident with five counts of wire fraud, one count of securities fraud, and two counts of money laundering. According to the indictment, from 2005 until October 2009, Erxleben devised and implemented a scheme to defraud and to obtain money from investors by the use of fraudulent pretenses, representations and promises. The indictment alleges that Erxleben used several companies, including WALTEC Consultants, LRE Holdings, and The MDM Group, to promote investments in fraudulent ventures, namely, in post-WWI German government gold bearer bonds and in a work of art purportedly by Paul Gauguin, a famous late 19th-early 20th century artist. The indictment further alleges that Erxleben used investment proceeds for the benefit of himself and his family, and to pay dividends to previous investors. In furtherance of the fraudulent scheme, the indictment also alleges that Erxleben made various wire transfers using numerous financial accounts which were opened and maintained by others, including one or more family members, in an effort to avoid detection by authorities. According to the indictment, Erxleben also failed to disclose to investors his 1999 federal felony criminal convictions for securities fraud and conspiracy to commit securities fraud, as well as the fact that he owed approximately $28 million in restitution stemming from those convictions.
Upon conviction, Erxleben faces up to 20 years in federal prison for each of the wire fraud and securities fraud counts, and up to 10 years in federal prison per money laundering count. Erxleben remains in federal custody pending the outcome of a detention hearing next week.
This indictment resulted from an investigation by the Internal Revenue Service-Criminal Investigation together with the Texas State Securities Board along with assistance from Homeland Security Investigations (HSI). Assistant United States Attorneys Matthew Devlin and Alan Buie are prosecuting this case on behalf of the Government.
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 Maverick County Commissioner Rodolfo Bainet Heredia in Connection with Bribery, Kickback and Bid-rigging SchemeRead the Press Release
In Del Rio this morning, a federal grand jury indicted Maverick County Precinct Two Commissioner Rodolfo Bainet Heredia, age 54, of Eagle Pass, Texas, 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.
The federal grand jury indictment charges Heredia with six counts of receiving a bribe and one count of paying a bribe to an agent of an organization receiving federal funds. The indictment alleges that in 2010 and 2011, Heredia manipulated 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 Heredia. According to the indictment, the private contractors submitted 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 the bribe to Heredia. The indictment further alleges that Heredia gave benefits to a county employee to guarantee that checks were issued to the contractors involved in this scheme.
Upon conviction, Heredia faces up to ten years in federal prison on each count. Heredia remains in custody following his arrest in October of last year on federal money laundering and bulk cash smuggling charges. A trial on those charges is scheduled for April 16, 2013. No court dates have been scheduled in connection with today’s indictment.
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.
Odessa Physician Enters Guilty Plea in Connection with A Methamphetamine Distribution and Fraudulent Prescription SchemeRead the Press Release
In Midland, 59–year-old Odessa physician Barrett Doyle Whitefield, faces a mandatory minimum ten-year federal prison term after pleading guilty this morning to conspiring to possess with intent to distribute and distribute controlled substances, announced United States Attorney Robert Pitman and Drug Enforcement Administration Special Agent in Charge Joseph M. Arabit.
By pleading guilty, Whitefield admitted that from late 2011, to July 19, 2012, when Drug Enforcement Administration agents and Midland Police Department Narcotics Detectives executed a search warrant at his medical office in Odessa, he wrote prescriptions for hydrocodone to numerous individuals upon request, without examining them, and on some occasions for individuals whom he never saw as patients. Whitefield further admitted that he was aware his co-defendants were selling the hydrocodone pills to other individuals in the Midland/Odessa area. Additionally, Whitefield admitted that he delivered a package of methamphetamine to an individual in Lamesa, TX, at the direction of his co-defendants.
Also this morning, Whitefield’s codefendants, Christina Rene Barfield, Megan Lynn Maner, and Cynthia Marie Constanzo, pleaded guilty to the conspiracy charge. By pleading guilty, Barfield admitted to directing co-defendants to sell hydrocodone and methamphetamine; Maner and Constanzo, to distributing hydrocodone and methamphetamine. Yesterday, co-defendant Cody Wayne Hearn entered a guilty plea to the conspiracy charge and admitted that he filled fraudulent hydrocodone and Xanax prescriptions written by Whitefield and distributed methamphetamine at the direction of Barfield. After pleading guilty, Barfield, Maner, Constanzo and Hearn each face a mandatory minimum of ten years in federal prison. No sentencing dates have been scheduled.
Jury selection for the three remaining co-defendants, Robert Michael Handlon, Matthew Christian Woodside, and Amanda Leigh Glenn, is scheduled for 8:30am on February 11, 2013. All face the same conspiracy to possess with intent to distribute and distribute controlled substances charge.
The case was investigated by the Drug Enforcement Administration and the Midland Police Department. Assistant United States Attorney Brandi Young is prosecuting the case on behalf of the Government.Federal Grand Jury Indicts Maverick County Commissioner Cesar FloresRead the Press Release
In Eagle Pass, Texas this morning, Maverick County Precinct Four Commissioner Cesar Flores, age 46 of Eagle Pass, Texas, was arrested by the Federal Bureau of Investigation (FBI) after a federal grand jury in Del Rio indicted him this week 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.
The federal grand jury indictment, returned yesterday and unsealed this morning, charges Flores with five counts of receiving bribes. The indictment alleges that in 2010 and 2011, Flores manipulated 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 Flores. According to the indictment, 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 Flores.
Upon conviction, Flores faces up to ten years in federal prison for each bribery charge. Flores appeared before Magistrate Judge Victor Roberto Garcia this morning in Del Rio for his Initial Appearance. Bond for Flores was set at $40,000.
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.
San Antonio Man Sentenced to Federal Prison for Ammunition SmugglingRead the Press Release
In San Antonio this morning, United States District Judge sentenced 31-year-old Edward Sandoval to 41 months in federal prison followed by three years of supervised release for purchasing approximately 40,000 rounds of ammunition to be smuggled into the Republic of Mexico, announced United States Attorney Robert Pitman and Homeland Security Investigations Acting Deputy Special Agent in Charge Monica Mapel.
On September 6, 2012, the San Antonio resident pleaded guilty to one count of aiding and abetting the smuggling of goods from the United States. According to the factual basis filed in this case, in January and February 2011, Sandoval admittedly purchased a total of approximately 40,000 rounds of multiple caliber ammunition, including 7.62 caliber and .223 caliber, from a San Antonio gun shop for a friend who informed Sandoval that the ammunition was destined for Mexico via Eagle Pass, Texas. Sandoval further admitted that he was paid $1,500 each time he purchased ammunition for others. In February 2011, authorities in Eagle Pass seized approximately 15,000 rounds of ammunition purchased by Sandoval prior to it being smuggled into Mexico.
This case was investigated by agents with Homeland Security Investigations and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Mark Roomberg prosecuted this case on behalf of the Government.
Odessa Woman Pleads Guity to $5.8 Million Fraudulent SchemeRead the Press Release
Today in Midland, 41-year-old Darlene Aurelia Bishop pleaded guilty to her role in a scheme in which she defrauded various individuals out of $5,854,701 over a six-month period, announced United States Attorney Robert Pitman.
Appearing this morning before United States Magistrate Judge David Counts, Bishop pleaded guilty to one count of conspiracy to commit wire fraud. According to the factual basis filed in this case, Bishop was the owner of several businesses in Odessa, including Ameritex Brokers, Paradize Funding, DarLin Enterprises, and JonDar Enterprises. Through these businesses, Bishop offered various “credit enhancement opportunities” through the use of Proof of Funds (POFs) letters. Beginning in July 2008 and continuing through March 2009, Bishop worked with several individuals affiliated with an entity known as Apogee Financial to obtain and utilize documents that appeared to be from a bank. Specifically, Bishop advertised the service of providing “leased funds” bank accounts, in which a client could “rent/lease” a bank account that was allegedly established in a client’s name, and then funded by an investor in any amount the client requested and paid for as part of the lease of funds. Bishop’s entire POF business model centered on the ability of clients to be able to use the POFs she sold them to gain entrance into a “private placement trading platform” that was exclusive to only those individuals who could demonstrate a high net worth. The POF was the tool designed to demonstrate, falsely, that high net worth.
By pleading guilty, Bishop admitted that she knew the POFs contained false information and that her clients had zero authority to withdraw any money from any such account or to borrow against the funds in the account. Furthermore, Bishop admitted that the POFs were being used to defraud other people and that she facilitated that further fraud. Bishop also admitted to using the money she received in this scheme to make several large purchases, including several vehicles and a $672,000 residence in Odessa. As part of the plea agreement, Bishop agreed to forfeit all of the cars and the money obtained from the sale of the residence.
Sentencing is scheduled for 8:30am on March 27, 2013, before United States District Judge Robert A. Junell. Bishop faces up to 20 years in federal prison for the wire fraud violation.
This investigation was conducted by the United States Secret Service. Assistant United States Attorney Austin M. Berry is prosecuting this case on behalf of the United States.
Jury Convicts Odessa Man of Methamphetamine OffensesRead the Press Release
This morning in Midland, a federal jury convicted 47-year-old Paul David Copeland, Jr., of Odessa, of various methamphetamine trafficking offenses, announced United States Attorney Robert Pitman.
After a two-day trial, Copeland was found guilty of multiple counts of possessing pseudoephedrine with intent to manufacture methamphetamine, conspiracy to manufacture methamphetamine, and attempting to manufacture methamphetamine. Testimony and evidence introduced at trial established that on 145 occasions between the Fall of 2006 and August 2011, Copeland purchased over-the-counter cold medicine containing pseudoephedrine, a key ingredient in manufacturing methamphetamine, from Odessa pharmacies such as Walgreen’s, Walmart, Target, Albertson’s, and HEB. Testimony further established that Copeland recruited at least three other individuals to purchase the same type of cold medicine on his behalf. The jury also received evidence that in May 2007, the Ector County Sheriff’s Office found an active meth lab in Copeland’s travel trailer and pick-up in Odessa.
As to each count of conviction, Copeland faces up to twenty years in federal prison, a $1 million fine, and a minimum three year term of supervised release following his release from custody. His sentencing date is March 14, 2013. Copeland has been in federal custody since his arrest in April 2012.
The case was investigated by the Texas Department of Public Safety and the Ector County Sheriff’s Office, with assistance from the Drug Enforcement Administration. Assistant United States Attorney John Klassen prosecuted the case on behalf of the Government.
British Businessman Christopher Tappin Sentenced to Federal Prison for Aiding and Abetting the Illegal Export of Defense ArticlesRead the Press Release
In federal court in El Paso this morning, 66-year-old British businessman Christopher Tappin of Orpington, Kent, was sentenced to 33 months in federal prison for attempting to export to Iran a special component of the Hawk Air Defense Missile announced United States Attorney Robert Pitman and Acting Homeland Security Investigations (HSI) Special Agent in Charge Dennis Ulrich, El Paso.
In addition to the prison term, U.S. District Judge David Briones ordered that Tappin pay an $11,357.14 fine and be placed under supervised release for a period of three years after completing his prison term.
“In this case, Mr. Tappin admitted his role in trying to facilitate the shipment of specialized batteries to Iran. These batteries are used to make Hark missiles operational, and Mr. Tappin admitted that he submitted false shipping documentation to circumvent U.S. export control regulations. Those who violate federal law for monetary gain, and in the process put the national security of the United States and its allies at risk, will face prosecution and punishment for their callous disregard for the public’s safety,” said United States Attorney Robert Pitman.
On November 1, 2012, Tappin appeared in federal court, reversed his original not-guilty plea and admitted culpability in the scheme. Tappin pleaded guilty to one count of aiding and abetting the illegal export of defense articles and by doing so, waived his right to appeal his conviction or challenge the sentence handed down in this case.
By pleading guilty, Tappin admitted that from December 2005 to January 2007, he knowingly aided and abetted others, including his Cyprus-based business associate Robert Frederick Gibson and Portland, OR, resident Robert Caldwell in an illegal attempt to export Zinc/Silver Oxide Reserve Batteries to Iran. These particular batteries, a special component of the Hawk Air Defense Missile, are designated as a defense article on the U.S. Munitions List and require a license or written authorization from the U.S. State Department for export from the United States.
According to the factual basis filed in this case, which Tappin admitted was truthful and accurate, Tappin
knowingly violated U.S. law by obtaining the specialized batteries under false pretenses. Tappin engaged in phone and email communications with an undercover federal agent to discuss payment and delivery
arrangements. In October 2006, Tappin wired approximately $25,000 from a London financial institution to a bank account in the United States as payment for five of the specialized batteries. Using false shipping documentation, Tappin arranged for the transfer of the batteries to the United Kingdom without an export license through his specifically designated freight forwarders in violation of export control regulations.During the investigation, Tappin even agreed to reimburse the undercover agent for $5,000 in fines purportedly being assessed against him by U.S. Customs authorities after they had seized the shipment of batteries.
Tappin, admittedly, also caused Caldwell to travel to San Antonio in January 2007 to take delivery of the
batteries, ensure that they were shipped to him (Tappin) and to pay the undercover agent $5,000 for the current fines. Tappin, in court, acknowledged that his anticipated profit from the transaction was $11,357.14.“Protecting our national security is one of HSI’s highest priorities,” said Dennis A. Ulrich, acting special agent in charge of HSI El Paso. “And this sentence is the result of more than six years of tenacious investigative work by HSI special agents, who were relentless in their efforts to prevent U.S. military products from being illegally exported and falling in the hands of our adversaries.”
In 2007, Gibson and Caldwell were sentenced to 24 months and 20 months, respectively, in federal prison for their roles in the scheme.
U.S. Attorney Pitman also commended HSI for investigating this matter as well as the United States Marshals Service and British authorities for their assistance during the extradition process.
Assistant United States Attorney Greg McDonald prosecuted this case on behalf of the Government.
Three Indicted in Connection with Odessa-based Firearms Straw Purchasing and Trafficking InvestigationRead the Press Release
Federal authorities last night arrested the remaining defendant, Odessa, TX, resident Brian Connell, age 28, charged in connection with 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.
Connell, who was arrested in Roswell, NM, as well as former Odessa residents Miguel Angel Compean, age 32, and his wife, Michelle Compean, age 27, are charged in a ten-count federal grand jury indictment returned last month with conspiracy to smuggle firearms from the United States. In addition to the conspiracy charge, Miguel Compean is charged with four counts of providing fraudulent or fictitious information while purchasing a firearm, one count of making a false statement in the acquisition of a firearm (straw purchasing) and, two counts of aggravated identity theft; Connell, two counts of making false statements in the acquisition of a firearm (straw purchasing); and Michelle Compean, one count of providing fraudulent or fictitious information while purchasing a firearm.
According to the indictment, the defendants conspired to surreptitiously purchase 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. The indictment alleges that Miguel Compean recruited his wife, Michelle, and Brian Connell to purchase firearms on his behalf. The indictment also alleges that Miguel Compean illegally purchased firearms for himself by using a relative’s name, date of birth and social security number; and, that Michelle Compean and Brian Connell both made false statements on ATF Form 4473 at the time of a firearm purchase claiming to be the actual buyer. Furthermore, Miguel Compean allegedly paid Connell $300 for each firearm that Connell straw purchased and gave to Compean.
Connell remains in federal custody awaiting transfer to the Midland Division of the Western District of Texas. Beginning at 9:00am tomorrow before U.S. Magistrate Judge David Counts in Midland, Miguel Compean, who has been in state custody on unrelated charges, is scheduled to have his arraignment/detention hearing; Michelle Compean, who was arrested last month in Greenville, is scheduled to have her initial appearance/arraignment. No trial date has been scheduled.
Upon conviction, defendants face up to five years in federal prison on the conspiracy charge; up to five years in federal prison for each charge of providing false information while purchasing a firearm; up to ten years in federal prison for each charge of making false statement during a firearms purchase (straw purchasing); and, a consecutive two years in federal prison for each charge of aggravated identity theft.
This case was investigated by ATF agents. Assistant United States Attorney Will Tatum 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 Police Officer Arrested in Bribery InvestigationRead the Press Release
This morning, a federal criminal complaint was filed against 36-year-old San Antonio Police Officer Curtis W. Lundy charging him with theft of honest services by wire fraud announced United States Attorney Robert Pitman, Federal Bureau of Investigation Special Agent in Charge Armando Fernandez and San Antonio Police Chief William McManus.
According to the complaint, on December 15, 2012, Officer Lundy responded to a call concerning an assault in progress at a Northside apartment complex. At the scene, Officer Lundy detained an individual in connection with the assault after that individual admitted to Officer Lundy that he was in possession of a user amount of marijuana. While the subject was detained, Officer Lundy indicated that he would hold off on filing the possession of marijuana charge in exchange for a $400 payment. During subsequent phone conversations, Officer Lundy raised the payment to $500.
The complaint also states that earlier this week, the subject contacted the Federal Bureau of Investigation about the matter. At the FBI’s direction, the subject was able to make multiple audio recordings of cellular telephone conversations with Officer Lundy. During one of those conversations, Officer Lundy instructed the subject to meet yesterday afternoon in order to collect the $500. Surveillance observed Officer Lundy, the sole occupant, arrive in a marked SAPD patrol vehicle and collect an envelope from the subject which contained $500. Authorities arrested Officer Lundy last night after his shift was completed.
Upon conviction, Officer Lundy faces up to 20 years in federal prison and a maximum $250,000 fine. Officer Lundy appeared before United States Magistrate Judge John Primomo this morning for his initial appearance and was released on a personal recognizance bond.
This case was investigated by agents with the Federal Bureau of Investigation together with San Antonio Police Department Internal Affairs. Assistant United States Attorney Greg Surovic is prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Former Odessa Adult Bookstore Owner Sentenced to Federal PrisonRead the Press Release
Today in Midland, 68-year-old Jimmy Wayne Wright, former owner of B & L Bookstore in Odessa, was sentenced to 20 months in federal prison after pleading guilty to possession with intent to distribute Methylenedioxypyrovalerone, or more commonly referred to as “bath salts,” announced United States Attorney Robert Pitman and Drug Enforcement Administration Special Agent in Charge Joseph M. Arabit.
In addition to the prison term, United States District Judge Robert A. Junell ordered that Wright be placed under supervised release for a period of three years after completing his prison term. Wright also agreed to forfeit $763,865.20 in cash and his business property to the Government.
In September 2012, Wright admitted that he had marketed “bath salts” under such false descriptive terms as “pipe cleaner,” “stain remover,” “plant food” and others for several months prior to March 2012. On March 6, 2012, DEA agents seized several containers of various types of “bath salts” that Wright had displayed for sale at his business, B & L Bookstore on North Mercury Avenue.
This investigation was conducted by agents with the Drug Enforcement Administration with assistance from the Federal Bureau of Investigation. This matter was prosecuted by Assistant United States Attorneys William Tatum and Brandi Young.