Eastern District of Texas

TEXARKANA, Texas – A Texarkana man has been sentenced to prison for federal violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.

Lamarcus Vontino Moore Jr., 21, pleaded guilty to conspiracy to commit bank theft and was sentenced to 18 months in federal prison and ordered to pay restitution of $257,789 and forfeiture of $33,665 by U.S. District Judge Robert W. Schroeder III on October 12, 2023.

According to information presented in court, Moore conspired with others to burglarize ATMs (automated teller machines) in the Bowie County area.  On Jan. 26, 2021, an ATM located at the Texar Federal Credit Union on Gibson Lane in Texarkana, Texas, was burglarized and approximately $127,654.00 was stolen.  On Feb. 2, 2021, an ATM located at the Texar Federal Credit Union on W. 7th Street in Wake Village, Texas, was also burglarized and approximately $10,513.00 was stolen.  In each burglary, one of the co-conspirators stole a pickup truck and then the defendants attached chains to the ATM and used the stolen truck to break open the ATM.  There was approximately $60,000 in damage done to each ATM.  The other six defendants have already been sentenced. 

This case was investigated by the Federal Bureau of Investigation, the Wake Village Police Department, the Texarkana Police Department, and the Queen City Police Department.  This case was prosecuted by Assistant U.S. Attorney Alan R. Jackson.

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BEAUMONT, Texas – A Little Rock, Arkansas man has been sentenced to federal prison for trafficking drugs in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.

Nicholas Iron Wilson, 27, pleaded guilty to possession with intent to distribute methamphetamine and was sentenced to 210 months in federal prison today by U.S. District Judge Marcia A. Crone. 

According to information presented in court, on September 15, 2021, Wilson was stopped by law enforcement officers near a truck stop in Cleveland, Texas.  During the stop, law enforcement noticed a strong odor of marijuana.  A search of the vehicle revealed two large plastic bags on the back floorboard containing 596 grams of methamphetamine.  Wilson was indicted and charged with federal drug trafficking violations.

This case was investigated by the U.S. Drug Enforcement Administration and the Liberty County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Michael A. Anderson.

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SHERMAN, Texas – A Mexican national has been sentenced to 27 years in federal prison for trafficking drugs through the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.

Fernando Alfredo Rodriguez-Reyes, 29, pleaded guilty to conspiracy to distribute meth, heroin and cocaine, and conspiracy to commit money laundering and was sentenced to 324 months in federal prison today by U.S. District Judge Amos L. Mazzant. 

According to information presented in court, on June 18, 2020, Rodriguez-Reyes was arrested when law enforcement agents executed a search warrant at a residence on Lytham Drive in Dallas.  The residence had been identified as a money and drug stash house distributing multi-kilogram quantities of cocaine, methamphetamine, and heroin in the Dallas, Lewisville, McKinney, Carrollton, Fort Worth, and Plano areas.  During the investigation it was discovered the drugs were sourced by a party in Mexico, with ties to the Sinaloa Cartel, and shipped from Mexico, to California, and eventually to the greater Dallas area. 

This effort is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

The case was investigated by the Drug Enforcement Administration in Dallas and prosecuted by Assistant U.S. Attorney Ernest Gonzalez.

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SHERMAN, Texas – A Denton County man has been sentenced to federal prison for child pornography violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs.

James Buck Briggs, 49, of The Colony, pleaded guilty to two counts of distributing child pornography and was sentenced to 240 months in federal prison today by U.S. District Judge Amos Mazzant.

According to public information, in December 2021, an undercover law enforcement officer encountered Briggs in an online chat room dedicated to the sexual abuse of children.  Briggs and the undercover officer began a chat which resulted in Briggs sending the officer a video depicting child pornography involving a very young female victim.  The undercover officer was able to trace the IP address to Briggs’ residence in The Colony and a search warrant was executed.  A search of Briggs’ cellular phone revealed hundreds of images which contained child pornography.  Briggs was indicted by a federal grand jury on Jan. 20, 2022.

This case is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse.  Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims.  For more information about Project Safe Childhood, please visit www.justice.gov/psc.

This case was investigated by the FBI’s Frisco Field Office and the Plano Police Department and prosecuted by Assistant U.S. Attorneys Maureen Smith, Lesley Brooks and Marisa Miller.

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TEXARKANA, Texas – A Texarkana man who sold thousands of fake oxycontin pills that contained fentanyl has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.

Terrance Lamar Peacock, also known as T, 32, pleaded guilty to conspiracy to possess with intent to distribute fentanyl resulting in death.  Peacock was sentenced to 370 months in federal prison today by U.S. District Judge Robert W. Schroeder III.

According to information presented in court, between November 2018 and March 2022, Peacock conspired with at least three others, including his brother Michael Peacock, to distribute fentanyl, methamphetamine, marijuana, and a synthetic opioid known as U-47700. 

Peacock and his co-conspirators distributed thousands of blue pills stamped to mimic 30mg oxycontin pills, known on the streets as “M-30s,” but the pills were counterfeits that instead contained fentanyl.  Peacock and his co-conspirators also sold thousands of pills marketed as ecstasy but contained methamphetamine and caffeine.  Three victims died and one had to be resuscitated after being administered Narcan after ingesting fake M-30 pills containing fentanyl that they had purchased directly from either Terrance Peacock or his brother, Michael Peacock.  Multiple firearms were seized from the defendants during the execution of search warrants at their homes and stash houses.

“Fentanyl kills indiscriminately, and this defendant chose to sell counterfeit M-30 pills that ultimately claimed the lives of three victims,” said U.S. Attorney Damien M. Diggs.  “The defendant recognized the inevitable consequences of peddling poison and chose greed over the preciousness of life.  Today’s significant sentence should send a powerful message to those who choose to distribute fentanyl resulting in death—the Eastern District of Texas will aggressively prosecute these cases to assist in combatting the opioid epidemic that has claimed the lives of so many victims.” 

Michael Peacock and Justin Owens have pleaded guilty and are awaiting sentencing.  Codefendant Deablo Lewis is scheduled for trial in January 2024.

This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

This case was investigated by the Texarkana Texas Police Department, the Texarkana Arkansas Police Department, the Texas Department of Public Safety Criminal Investigations Division, the U.S. Drug Enforcement Administration, and the U.S. Postal Inspection Service.  This case was prosecuted by Assistant U.S. Attorneys Jonathan Hornok and Ryan Locker.

BEAUMONT, Texas – A Groves man has been sentenced to federal prison for trafficking drugs in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.

Dustin Joseph Collins, 40, pleaded guilty to possession with intent to distribute methamphetamine and was sentenced to 121 months in federal prison today by U.S. District Judge Marcia A. Crone. 

According to information presented in court, on November 9, 2021, Collins was stopped by law enforcement officers on Highway 69 southbound to Port Arthur.  During the stop, a police canine alerted on the vehicle causing Collins to flee the scene.  Collins ran across the freeway through traffic before being apprehended.  A search of Collins’ vehicle revealed a backpack with over 231 grams of methamphetamine.

This case was investigated by the U.S. Drug Enforcement Administration and the Port Arthur Police Department and prosecuted by Assistant U.S. Attorney Michael Anderson.

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BEAUMONT, Texas – A Houston man who led a counterfeit drug trafficking scheme has been sentenced to federal prison for drug trafficking and money laundering violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.

Byron A. Marshall, 45, pleaded guilty to conspiracy, trafficking in counterfeit drugs, and money laundering conspiracy and was sentenced to 300 months in federal prison today by U.S. District Judge Marcia A. Crone.   

According to the indictment, from April 2014 until August 2021, Marshall conspired with ten others including Adam P. Runsdorf, the owner and president of Woodfield Pharmaceutical LLC based in Boca Raton, Florida.

According to information presented in court, Marshall utilized Woodfield Pharmaceutical’s manufacturing facility and employees in Houston to produce more than 500,000 pints of counterfeit cough syrup. Marshall’s drug trafficking organization sold the counterfeit drugs across Texas, Louisiana, Mississippi, Alabama, Georgia, South Carolina, Tennessee, Wisconsin, California, Florida, Arkansas, and Ohio. Prices generally ranged from $100 to more than $1,000 per one-pint bottle. Depending on the market and brand of cough syrup, prices went as high as $3,800 to $4,000 per pint.

During the conspiracy, Marshall communicated directly with Runsdorf regarding production of the counterfeit cough syrup.  At Runsdorf’s request, Marshall paid Woodfield Pharmaceutical in cash only, and Woodfield employees mailed the cash directly to Runsdorf in Boca Raton. 

“Mr. Marshall was the ringleader of a drug trafficking organization responsible for selling counterfeit drugs across most of the southeastern United States and many other states,” said U.S. Attorney Damien M. Diggs.  “Drug trafficking organizations like this are a cancer to our nation and present a substantial threat to our communities.  Today’s significant sentence should send a clear message to such organizations that the Eastern District of Texas along with our federal, state, and local law enforcement partners will remain laser-focused on crippling drug trafficking organizations that choose to distribute drugs and other poisons in our communities.”       

All eleven defendants charged in the indictment pleaded guilty.  Eight have been sentenced including Marshall. Adam Runsdorf and Tunji Campbell pleaded guilty to conspiracy, trafficking in counterfeit drugs, and money laundering conspiracy. Campbell, who partnered with Marshall to hatch the scheme, was sentenced to 135 months imprisonment. Runsdorf was sentenced to 72 months imprisonment and ordered to forfeit $5 million and a McLaren sportscar. Chauntell D. Brown pleaded guilty to conspiracy and trafficking in counterfeit drugs and was sentenced to 72 months imprisonment. Cheryl A. Anderson, Ashley A. Rhea, Maria Anzures-Camarena and Kalpen Patel, each pleaded guilty to conspiracy and were sentenced to 60 months imprisonment. Three others are awaiting sentencing.        

This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

This case was investigated by the Drug Enforcement Administration; U.S. Food and Drug Administration Office of Criminal Investigations; Internal Revenue Service-Criminal Investigation; Federal Bureau of Investigation; U.S. Marshals Service; Houston Police Department; Galveston Police Department; Galveston County Sheriff’s Office; Dickinson Police Department; League City Police Department; Pearland Police Department; Pasadena Police Department; Texas City Police Department; Harris County Precent #2; Brazoria County Sheriff’s Office; Fort Bend County Sheriff’s Office; Liberty County Sheriff’s Office; and the Texas National Guard.  This case was prosecuted by Assistant U.S. Attorneys John B. Ross, Jonathan C. Lee, and Robert A. Wells.

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BEAUMONT, Texas – A Silsbee man has been sentenced to federal prison for child pornography violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.

Michael Joseph Fontenot, 51, pleaded guilty to possessing child pornography and was sentenced to 78 months in federal prison today by U.S. District Judge Marcia A. Crone.

According to public information, an investigation by the Denver Innocent Images Task Force into individuals viewing and downloading child pornography through a social media application led to Fontenot in Hardin County, Texas.  A search warrant was executed by federal law enforcement at Fontenot’s residence and several electronic devices were seized, including a cell phone, tablet, flash drives and a laptop.  A forensic review of the items revealed over 600 images of child pornography.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.

This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Rachel Grove.

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BEAUMONT, Texas – A Bridge City man has been convicted of federal child pornography violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.

Dereck Wayne Winstead, 34, was found guilty by a jury of possession of child pornography following a trial before U.S. District Judge Marcia A. Crone on September 12, 2023.

According to information presented in court, in 2020, federal agents received two cyber tips from the National Center for Missing and Exploited Children (NCMEC) with information that an individual in Orange County, Texas, had been accessing and possessing images of child pornography.  An investigation revealed the accounts accessing the child pornography were connected to Winstead.  On March 30, 2022, law enforcement officers conducted a consensual search at Winstead’s residence and located four electronic devices, including a custom-built gaming computer. A search of the custom-built gaming computer by a computer forensic analyst revealed over 300 images of child pornography including images of children under the age of 12.

Under federal statutes, Winstead faces up to 20 years in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

This case was investigated by Homeland Security Investigations Beaumont Resident Agency and prosecuted by Assistant U.S. Attorneys Rachel Grove and Jonathan Lee.

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TYLER, Texas - A Mexican national has been sentenced to federal prison for trafficking drugs through the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.

Leobardo Hernandez-Hernandez, 34, pleaded guilty to possession with intent to distribute methamphetamine and was sentenced to 160 months in federal prison today by U.S. District Judge Jeremy D. Kernodle. 

According to information presented in court, in March 2022, Hernandez supplied more than 150 grams of methamphetamine, cocaine, and marijuana to drug dealers at a stash house located in Gregg County, Texas.  Hernandez sourced the illegal drugs from wholesalers in California. Additionally, Hernandez possessed a shotgun in connection with his drug trafficking activities. Hernandez's co-conspirator, Joshua Lynn Craver, 35, of Longview, Texas was sentenced to 180 months in prison on November 3, 2022.

This case was investigated by the U.S. Drug Enforcement Administration, Gregg County Sheriff's Office, and Longview Police Department. The case was prosecuted by Assistant U.S. Attorney Lucas Machicek.

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TYLER, Texas – The former mayor of Athens, Texas man has been sentenced to federal prison for child obscenity violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.

James Monte Montgomery, 65, pleaded guilty to sending obscene materials to a minor on August 25, 2022, and was sentenced to 60 months in federal prison today by U.S. District Judge Jeremy D. Kernodle.

According to public information, on June 3, 2021, Montgomery was arrested after arriving at an undisclosed location after soliciting sex online with investigators posing as minors.  In June of 2020, Montgomery, then the mayor of Athens, Texas, began communicating by text messaging with a person he believed to be a 15-year-old female.  Montgomery sent messages to the child describing sexually explicit acts that he wanted to perform on the child and offering to pay the child if she would meet him and have sex with him. 

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.

This case was investigated by the Federal Bureau of Investigation’s Tyler Field Office, with assistance from the Texas Department of Public Safety, Collin County Sheriff’s Office, and the Department of Homeland Security-Homeland Security Investigations.  This case was prosecuted by Assistant U.S. Attorney Robert Austin Wells.

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TYLER, Texas - A Jefferson, Texas man has been convicted of federal sex trafficking violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.

Corey Johnson, 40, pleaded guilty to one count of conspiracy to commit sex trafficking today before U.S. Magistrate Judge K. Nicole Mitchell.

According to information presented in court, Johnson engaged in trafficking at least three victims between March 2020 and September 2020 in Texas, Louisiana, Tennessee, New York, and California.  Johnson transported the victims and arranged transportation for the victims between various hotels and motels to perform commercial sex acts.  Johnson recruited the victims by social media and threatened to harm them if they did not perform commercial sex acts for commercial sex customers.  Johnson obtained customers by purchasing and posting advertisements on various internet websites.

Under federal statutes, Johnson faces up to life in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.

This case was investigated by Texas DPS Criminal Investigations Division.  This case was prosecuted by Assistant U.S. Attorneys Nathaniel C. Kummerfeld and Robert Austin Wells, with assistance from Trial Attorney Julie Pfluger of the Justice Department’s Civil Rights Division, Human Trafficking Prosecution Unit.

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PLANO, Texas – A Saginaw, Texas man has been indicted for federal drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today. 

Kevin Chase McCauley, 35, was named in a two-count indictment returned by a federal grand jury on August 9, 2023, charging him with conspiracy to distribute fentanyl and possession with intent to distribute fentanyl resulting in death.  McCauley made his initial appearance this morning before U.S. Magistrate Judge Kimberly C. Priest Johnson.   

According to the indictment and information presented in court, on March 8, 2023, law enforcement officers with the Denton County Sheriff’s Office responded to the scene of a reported overdose in Argyle, Texas.  Upon arrival, officers discovered an individual who had died as the result of an apparent drug overdose.  An autopsy revealed the person had died from the toxic effects of fentanyl.  Further investigation identified McCauley as the person who supplied and sold the fentanyl resulting in the overdose death. 

If convicted, McCauley faces from 20 years to life in federal prison.

This case is being investigated by the Denton County Sheriff’s Office CID, the U.S. Drug Enforcement Administration, and the Tarrant County Medical Examiner’s Office.  This case is being prosecuted by Assistant U.S. Attorney Matthew T. Johnson.

A grand jury indictment is not evidence of guilt.  All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

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SHERMAN, Texas - A Lubbock man has been sentenced to 25 years in federal prison for drug trafficking, announced Eastern District of Texas U.S. Attorney Damien M. Diggs today.

Javier Guerra, 45, pleaded guilty to conspiracy to possess with intent to distribute cocaine and was sentenced to 300 months in federal prison today by U.S. District Judge Amos L. Mazzant. 

According to information presented in court, between 2017 and 2018, law enforcement officers seized 10 kilograms of cocaine and $1,664,620 in U.S. currency from drug traffickers.  An investigation into the drug trafficking revealed the drugs were being imported from Mexico and transported from the Rio Grande Valley to St. Louis, Missouri; Danville, Virginia; Greenville, South Carolina; Atlanta, Georgia; Fort Meyers, Florida; and other areas.  The investigation also revealed Mark Calzadias, Michael Calzadias, and Thomas Calzadias were the main sources of supply.  It was determined that Guerra often ordered two shipments of cocaine per month for distribution in the Lubbock area.  Those shipments contained from seven to 15 kilograms of cocaine each, with Guerra paying approximately $30,000 for each kilogram.  Guerra maintained a storage unit in Lubbock where he kept the cocaine until distribution.

This effort is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

The case was investigated by the Drug Enforcement Administration in Dallas and Lubbock and the Texas Department of Public Safety.  This case was prosecuted by Assistant U.S. Attorney Ernest Gonzalez.

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SHERMAN, Texas - A Colombian national has been sentenced to over 21 years in federal prison for trafficking drugs through the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.

Luis Fernando Toro Londono, also known as Don Alonso, La Vaca, and Don Hector, 56, of Medellin, Colombia, pleaded guilty to conspiracy to manufacture and distribute cocaine knowing it would be distributed in the United States and was sentenced to 262 months in federal prison today by U.S. District Judge Amos L. Mazzant. 

According to information presented in court, in August 2017, federal drug agents were investigating a drug trafficking organization moving drugs from Colombia to Mexico via Costa Rica and Panama for eventual distribution of multi-ton quantities of cocaine in the United States. The organization used Go-Fast vessels and aircraft to transport most of their cocaine shipments to Central America and Mexico. 

Londono was identified as a Colombian based cocaine investor, smuggler, and money launderer that coordinated the dispatch of large cocaine shipments and coordinated the movement of drug proceeds throughout multiple countries and several cities in the United States.

This effort is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

The case was investigated by the Drug Enforcement Administration in Dallas and Colombia and prosecuted by Assistant U.S. Attorney Ernest Gonzalez.

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SHERMAN, Texas – An Allen man, convicted of multiple federal violations related to a fraud scheme that included the murder of a Carrollton man, has been sentenced to life in federal prison, announced Eastern District of Texas U.S. Attorney Damien M. Diggs.

Keith Todd Ashley, 51, was found guilty by a jury of wire fraud, mail fraud, carrying a firearm in relation to a crime of violence and bank fraud in October 2022.  Ashley was sentenced to life in federal prison today by U.S. District Judge Amos L. Mazzant.

According to information presented at trial, beginning in 2016, Ashley, a registered nurse who also began working as a financial advisor and life insurance agent, started stealing money from his clients.  Ashley promised his clients he would invest their money in financial products but instead used the funds to pay other clients, to keep his struggling brewery in business, to pay his personal bills and to fund a lavish lifestyle.  In May 2016, Ashley began stealing investment funds from a Carrollton man.  This scheme included transferring the client’s money into his personal accounts and changing the beneficiary of the man’s life insurance to a trust controlled by Ashley.  The scheme eventually resulted in the Feb. 19, 2020, murder of the client, which Ashley attempted to stage as a suicide.  Even after the client was killed, Ashley went through elaborate steps to collect on the life insurance policy, transfer funds from the victim’s bank account to himself, and attempt to obtain a copy of the victim’s autopsy report.  Ashley was indicted by a federal grand jury on Nov. 12, 2020, and has been charged with various federal violations, including wire fraud, mail fraud and firearms violations.   

“Today’s sentence brings a sense of relief and justice to the victim’s family and friends, who have endured pain and grief as a result of the defendant’s horrific actions,” said U.S. Attorney Damien M. Diggs.  “Mr. Ashley’s actions of defrauding and ultimately taking the victim’s life is reprehensible and indefensible.  I’m grateful to our local and federal law enforcement partners who worked tirelessly on this case.  Their dedication was essential in bringing this defendant to justice.”

“Keith Ashley funded his lavish lifestyle and attempted to rescue his failing business by robbing his clients of financial security, and when that wasn’t enough, he robbed one of his life,” said Dallas FBI Special Agent in Charge Chad Yarbrough. “Many local and federal resources came together to seek justice for the victims, and our hope is that today’s sentence can bring continued healing to the families and friends who will be forever impacted by the greed and deceit caused by the defendant.”

This case was investigated by the Federal Bureau of Investigation – Frisco Resident Agency, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Dallas County District Attorney’s Office, and the Carrollton Police Department.  This case was prosecuted by Assistant U.S. Attorneys Heather Rattan and Jay Combs and Special Assistant U.S. Attorney Jason Fine.

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SHERMAN, Texas - A Mexican national has been sentenced to 25 years in federal prison for trafficking drugs through the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.

Eduardo Fernando Martinez-Gonzalez, 33, pleaded guilty to conspiracy to distribute methamphetamine and was sentenced to 300 months in federal prison today by U.S. District Judge Amos L. Mazzant.  Martinez-Gonzalez was also sentenced to 240 months in federal prison for conspiracy to launder money.  The sentences will run concurrently.

According to information presented in court, in July 2019, federal agents investigating the trafficking of multi-kilogram quantities of cocaine, methamphetamine, and heroin in the Dallas, Lewisville, McKinney, Carrollton, Fort Worth, and Plano, Texas, areas, determined that the drugs were sourced by an individual in Mexico with ties to the Sinaloa Cartel and that the drugs were shipped from Mexico to California and eventually to the greater Dallas area. During the investigation, Eduardo Fernando Martinez-Gonzalez, a/k/a Eduardo Torres-Hernandez, Eduardo Del Valle, Eduardo Del Valle Torres, and Lalo (Martinez-Gonzalez), was identified as a money launderer and illicit drug distributor for the drug trafficking organization in Dallas.

Martinez-Gonzalez was responsible for receiving, counting, and packaging the drug proceeds along with recruiting others and paying their rent to conduct drug trafficking activities at their residences.  In one instance, in June 2020, federal agents observed a single axle trailer arrive at a stash house on South Waterview Street in Richardson, where Martinez-Gonzalez was seen unloading the trailer.  Past observations indicated trailers would arrive at that location loaded with cocaine and heroin, be off-loaded, and then reloaded with U.S. currency and a “cover load” for delivery to Mexico. The trailers would leave that location and arrive at a location on Townsend Drive in Dallas, where an additional “cover load” was added before leaving for Mexico the following day. Agents followed the driver of the trailer to the Townsend location where it was seized. A search of the trailer revealed two large televisions, a hot water heater, a Louis Vuitton bag, and four boxes of ceramic tile. The bottom of the water heater had been cut out, and seven bundles were taped inside. The bundles contained $774,910 in U.S. currency and approximately 58 grams of an orange, oval, pill.

This effort is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

The case was investigated by the Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney Ernest Gonzalez.

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SHERMAN, Texas – A second man has been sentenced to federal prison in connection with a string of violent home invasion type robberies in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.

Kendrick Donnell Jones, Jr., 24, of Grand Prairie, pleaded guilty to conspiracy to interfere with interstate commerce by robbery; aiding and abetting; conspiracy to kidnap; using, carrying, and brandishing a firearm during and in relation to a crime of violence.  Jones was sentenced to 262 months in federal prison today by U.S. District Judge Amos Mazzant.  Last month, Tony Sullivan was sentenced to 25 years in federal prison for his role in the robberies.   

According to information presented in court, the FBI began an investigation into a series of home invasion type robbery incidents between April 2019 and December 2019 that targeted owners and operators of donut stores in the Dallas-Fort Worth Metroplex area.  The robberies occurred late in the evening or very early in the morning before the shopkeepers departed for work.  The assailants would force their way into the home and assault the home’s occupants.  Victims were often beat with baseball bats and bound with duct tape while being held at gunpoint.  At least nine robberies have been attributed to this crime spree.  Due to the times of the robberies coinciding with the times the victims would have been leaving their residences to open their businesses, agents concluded the suspects had to have conducted physical surveillance to determine where the victims lived and when the victims would have been leaving their residences. On the evening of July 8, 2019, officers in Euless, Texas, received a call from a witness reporting an individual stumbling down his street with his hands bound by tape. The victim had a bleeding head wound and was transported to a hospital.  The victim advised he returned home from his donut shop in Dallas to find two suspects in his residence.  He was bound and beat with a baseball bat and ordered to open a safe.  The assailants left with the victim’s car keys, cellular phone, approximately $9,500 from the safe, and approximately $900 from his wallet. Law enforcement agents utilized footage from surveillance videos, cell phone site data, and data extracted from cellular phones to determine Jones participated in the attack. 

This case was investigated by the Federal Bureau of Investigation’s Dallas Violent Crimes Task Force, which includes the Dallas Police Department, the Garland Police Department, the Grand Prairie Police Department, the Richardson Police Department, and the Texas Department of Public Safety. Other investigating agencies who assisted in the investigation are the Bureau of Alcohol Tobacco and Firearms (ATF), the Carrollton Police Department, the Coppell Police Department, the Dallas Police Department, the Dalworthington Gardens Police Department, the Euless Police Department, and the Flower Mound Police Department.  The case was prosecuted by Assistant U.S. Attorney Ernest Gonzalez.

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BEAUMONT, Texas – Three Texas men have pleaded guilty to federal drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.

Nekia Euron Byrd, 48, of Houston; Rodney Ignacio Castro, 41, of Houston; and Terance Babe Green, 43, of Beaumont each pleaded guilty to conspiracy to possess with intent to distribute a controlled substance today before U.S. Magistrate Judge Christine L. Stetson.

According to information presented in court, Byrd, Castro and Green were responsible for trafficking cocaine throughout the Houston-area, and into various locations throughout eastern Texas, including Texarkana, Lufkin and Port Arthur.  Specifically, Green controlled a cocaine distribution network in Port Arthur, responsible for importing several kilograms of cocaine each month, for distribution and conversion to cocaine-base.  Byrd was responsible for owning two residences in Houston, where narcotics distribution in methamphetamine, cocaine, marijuana and promethazine occurred.  These residences were responsible for providing wholesale distribution of narcotics to mid-level dealers throughout the Houston-area and eastern Texas.  Castro served as a source-of-supply for cocaine for Byrd’s operation, and several other mid-level dealers servicing Houston and eastern Texas.  On Sep. 28, 2021, a search warrant was served at Castro’s residence resulting in the seizure of $1,050,860.00 in U.S. Currency, and assorted jewelry worth roughly $250,000.00.  Estimates based upon seizures and wiretaps indicate Castro was responsible for trafficking over 100 kilograms of cocaine in the course of this conspiracy.  

The defendants each face from 10 years to life in federal prison at sentencing.  The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors.  A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.

This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

This case is being investigated by the Drug Enforcement Administration and the Internal Revenue Service - Criminal Investigation and prosecuted by Assistant U.S. Attorney Michael A. Anderson.

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BEAUMONT, Texas – A Brooklyn, NY man has pleaded guilty to a federal firearms violation in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.

Ahmed Abdalla Allam, 26, pleaded guilty to possession of a firearm in a school zone before U.S. District Judge Marcia A. Crone today.

According to information presented in court, on Jan. 29, 2023, Allam was found in possession of a multi-caliber rifle within 1,000 feet of St. Anthony Cathedral Basilica School in Beaumont.  Allam also possessed a 30-round magazine and 150 rounds of ammunition.  It is a federal violation to possess firearms within 1,000 feet of a school zone.  

“We are grateful to our Beaumont citizens who were vigilant and looked out for their community by reporting this defendant’s suspicious activity,” said U.S. Attorney Damien M. Diggs.  “We are also grateful to the Beaumont Police Department and its officers who ensured that this defendant was unable to act on whatever it was he had planned.”

Allam was indicted by a federal grand jury on Feb. 1, 2023.  He faces up to five years in federal prison.  The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors.  A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

This case is being investigated by the Beaumont Police Department, Jefferson County District Attorney’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives, FBI, Port Arthur Fire Department, and Montgomery County Fire Marshall.  This case is being prosecuted by Assistant U.S. Attorney John B. Ross.

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BEAUMONT, Texas– A Beaumont man has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.

Michael James White, 34, pleaded guilty to wire fraud charges before U.S. Magistrate Judge Zack Hawthorn on August 1, 2023.

According to information presented in court, White was the owner and operator of Gold Pro, LLC, a business in Vidor, Texas that bought and sold precious metals like gold and silver.  The company marketed their products as “financial security for future financial uncertainty.” Gold Pro operated by promising potential buyers from across the United States a certain number of precious metals, then obtaining payment from customers through the wire transfer of funds from the buyer’s bank account to Gold Pro’s bank account.  White communicated by email, telephone, or computer chat with potential buyers about the amount of precious metals the buyer would buy and agreed on a price for the precious metals and their delivery. Starting in 2021, in multiple instances after receiving payment, White did not deliver the precious metals to the buyer, delivered a product of lesser value, or delivered fake precious metals. During an almost three-year period beginning in 2020, White defrauded numerous victims throughout the United States, resulting in a loss of more than $1 million.

White faces up to 20 years in federal prison.  The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors.  A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.

This case is being investigated by the Federal Bureau of Investigation and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney Reynaldo P. Morin.

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SHERMAN, Texas – An Annona, Texas nurse has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.

Crystal McLin Lipe, 41, pleaded guilty on July 27, 2023, to obtaining a controlled substance by fraud before U.S. Magistrate Judge Aileen Goldman Durrett.

According to court documents presented in court, Lipe worked as a registered nurse in the Intensive Care Unit (ICU) of a hospital in the Eastern District of Texas.  At various points during her time with the hospital, Lipe knowingly accessed and obtained fentanyl, a controlled substance under federal law, for personal use without the hospital’s authorization.  In particular, Lipe acquired the fentanyl fraudulently, by removing the fentanyl from its original vials, replacing the fentanyl with a liquid containing sodium chloride, and failing to disclose her conduct to the hospital.

Lipe faces up to 4 years in federal prison at sentencing.  The maximum statutory sentences prescribed by Congress are provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors.  Sentencing hearings will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.

This case is being investigated by the U.S. Food and Drug Administration (FDA) and the U.S. Drug Enforcement Administration (DEA).

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BEAUMONT, Texas – A Florida-based pharmaceutical president has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.

Adam P. Runsdorf, 58, of Boca Raton, Florida, pleaded guilty to conspiracy, trafficking in counterfeit drugs, and money laundering conspiracy and was sentenced to 72 months in federal prison today by U.S. District Judge Marcia A. Crone.  Runsdorf was also ordered to forfeit $5 million and a McLaren sportscar. 

According to the indictment, from April 2014 until August 2021, Runsdorf, the owner and president of Woodfield Pharmaceutical LLC based in Boca Raton, Florida, conspired with drug traffickers in Houston, Texas, to distribute misbranded and counterfeit cough syrup.  Runsdorf’s company pleaded guilty to the same charges and was ordered to forfeit $1 million and fined $50,000.

According to information presented in court, Byron A. Marshall, 43, of Houston, utilized Woodfield Pharmaceutical’s manufacturing facility and employees in Houston to produce more than 500,000 pints of counterfeit cough syrup. Marshall’s drug trafficking organization sold the counterfeit drugs across Texas, Louisiana, Mississippi, Alabama, Georgia, South Carolina, Tennessee, Wisconsin, California, Florida, Arkansas, and Ohio. Prices generally ranged from $100 to more than $1,000 per one-pint bottle. Depending on the market and brand of cough syrup, prices went as high as $3,800 to $4,000 per pint.

During the conspiracy, Marshall communicated directly with Runsdorf regarding production of the counterfeit cough syrup.  At Runsdorf’s request, Marshall paid Woodfield Pharmaceutical in cash only, and Woodfield employees mailed the cash directly to Runsdorf in Boca Raton. 

All eleven defendants charged in the indictment, including Runsdorf and Marshall, pleaded guilty.  Six have been sentenced in addition to Runsdorf. Tunji Campbell pleaded guilty to conspiracy, trafficking in counterfeit drugs, and money laundering conspiracy and was sentenced to 135 months imprisonment. Chauntell D. Brown pleaded guilty to conspiracy and trafficking in counterfeit drugs and was sentenced to 72 months imprisonment. Cheryl A. Anderson, Ashley A. Rhea, and Maria Anzures-Camarena, each pleaded guilty to conspiracy and were sentenced to 60 months imprisonment. Five others, including Marshall, are awaiting sentencing.        

“In his role as owner and president of Woodfield Pharmaceutical LLC, Adam Runsdorf knew his company was producing thousands of gallons of counterfeit cough syrup—labeled to be nearly identical to a discontinued product—to be distributed to drug traffickers in Texas and other states,” said U.S. Attorney Damien M. Diggs.  “Runsdorf knew that drug traffickers were selling the counterfeit cough syrup to street-level users and he profited greatly from the sale of the counterfeit cough syrup.  Runsdorf’s greed earned him a significant prison sentence.  Food and drug products, particularly pharmaceuticals such as cough syrups, undergo rigorous testing and inspection by federal authorities to ensure their safety.  When companies evade inspection and certification requirements, innocent consumers are put at risk.  EDTX is committed to ensuring public safety and upholding public trust through the vigorous prosecution of those that skirt these safety requirements.” 

“This sentence sends a strong message to anyone misusing their trusted role and privilege granted by DEA to handle controlled substance,” said DEA Special Agent in Charge of the Houston Division Daniel C. Comeaux.” “This case shows how collaborative efforts between state, local and federal partners on multiple fronts are capable of holding large pharmaceutical distribution companies like Woodfield Distribution accountable by immediately suspending its dangerous operations and bringing its CEO behind bars.”

“Today’s sentence sends a clear message that the laws of the land apply to everyone, regardless of position or power,” said Special Agent in Charge Christopher J. Altemus, Jr. of IRS Criminal Investigation (CI), Dallas Field Office. “Adam Runsdorf abused his role as CEO of Woodfield Distributors to participate in the laundering of hundreds of thousands of dollars derived from illegally manufactured and distributed controlled substances. Mr. Runsdorf’s sentence is a direct result of the excellent partnership between law enforcement and the U.S. Attorney’s office in combating drug trafficking and money laundering.  I am extremely proud of the CI special agents who used their unique financial expertise to help unravel this complex fraud and money laundering scheme. IRS-CI will continue to work with our law enforcement partners to stop criminals like Mr. Runsdorf from endangering the American public.”

This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

This case was investigated by the Drug Enforcement Administration; U.S. Food and Drug Administration Office of Criminal Investigations; Internal Revenue Service-Criminal Investigation; Federal Bureau of Investigation; U.S. Marshals Service; Houston Police Department; Galveston Police Department; Galveston County Sheriff’s Office; Dickinson Police Department; League City Police Department; Pearland Police Department; Pasadena Police Department; Texas City Police Department; Harris County Precent #2; Brazoria County Sheriff’s Office; Fort Bend County Sheriff’s Office; Liberty County Sheriff’s Office; and the Texas National Guard.  This case was prosecuted by Assistant U.S. Attorneys John B. Ross and Jonathan C. Lee.

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SHERMAN, Texas – A Mesquite man has been sentenced to 25 years in federal prison for violent criminal activity in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.

Tony Sullivan, 28, pleaded guilty to conspiracy to interfere with interstate commerce by robbery; aiding and abetting; conspiracy to kidnap; using, carrying, and brandishing a firearm during and in relation to a crime of violence.  Sullivan was sentenced to 300 months in federal prison on July 26, 2023, by U.S. District Judge Amos Mazzant.   

“Sullivan has been justly punished for subjecting innocent victims to his spree of violence between April 2019 and August 2019,” said U.S. Attorney Damien M. Diggs.  “Today’s sentence sends a powerful message to those who use violence and fear to carry out their crimes.”

“The defendant targeted a close-knit community of successful business owners, inciting fear throughout the metroplex. His victims were stalked and terrorized, some for hours and some to the brink of death, and all have a long road of recovery ahead,” said Dallas FBI Special Agent in Charge Chad Yarbrough. “Law enforcement utilized proactive investigative techniques that thwarted future attacks and led to the dismantlement of a criminal enterprise that had no intention of stopping. We cannot allow violent crimes to erode the value of community in our hometowns; law enforcement will continue to work together to bring violent offenders to justice and protect our residents.”

According to information presented in court, the FBI began an investigation into a series of home invasion type robbery incidents between April 2019 and December 2019 that targeted owners and operators of donut stores in the Dallas-Fort Worth Metroplex area.  The robberies occurred late in the evening or very early in the morning before the shopkeepers departed for work.  The assailants would force their way into the home and assault the home’s occupants.  Victims were often beat with baseball bats and bound with duct tape while being held at gunpoint.  At least nine robberies have been attributed to this crime spree.  Due to the times of the robberies coinciding with the times the victims would have been leaving their residences to open their businesses, agents concluded the suspects had to have conducted physical surveillance to determine where the victims lived and when the victims would have been leaving their residences. On the evening of July 8, 2019, officers in Euless, Texas, received a call from a witness reporting an individual stumbling down his street with his hands bound by tape. The victim had a bleeding head wound and was transported to a hospital.  The victim advised he returned home from his donut shop in Dallas to find two suspects in his residence.  He was bound and beat with a baseball bat and ordered to open a safe.  The assailants left with the victim’s car keys, cellular phone, approximately $9,500 from the safe, and approximately $900 from his wallet. Law enforcement agents utilized footage from surveillance videos, cell phone site data, and data extracted from cellular phones to determine Sullivan participated in the attack.

This case was investigated by the Federal Bureau of Investigation’s Dallas Violent Crimes Task Force, which includes the Dallas Police Department, the Garland Police Department, the Grand Prairie Police Department, the Richardson Police Department and the Texas Department of Public Safety. Other investigating agencies who assisted in the investigation are the Bureau of Alcohol Tobacco and Firearms (ATF), the Carrollton Police Department, the Coppell Police Department, the Dallas Police Department, the Dalworthington Gardens Police Department, the Euless Police Department, and the Flower Mound Police Department.  The case was prosecuted by Assistant U.S. Attorney Ernest Gonzalez.

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SHERMAN, Texas– A Terrell man has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.

Michael Disman, 41, pleaded guilty to wire fraud charges before U.S. Magistrate Judge Aileen Goldman Durrett on July 19, 2023.

According to information presented in court, between January 2018 and March 2022, Disman operated an investment fraud scheme using various companies he controlled, including “Dexter Development” and “Disman Energy.”  Disman solicited funds from victim investors for purported lucrative land development projects, when in reality, those projects were non-existent and the investor funds were spent elsewhere.  To execute his scheme, Disman made various material misrepresentations about investor payouts and the use of investor money, executing sham contracts and sharing real estate paperwork to add legitimacy.   Disman actually used the investor funds for various non-business purposes, including on ATM cash withdrawals and drug purchases.  In total, Disman defrauded at least 20 victim investors and caused at least $3.2 million in losses. 

Disman faces up to 20 years in federal prison.  The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors.  A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.

This case is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Anand Varadarajan.

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A Missouri man was sentenced today to 20 years in prison for racketeer influenced and corrupt organizations (RICO) charges stemming from his membership in the Aryan Circle (AC), a white supremacy prison gang.

According to court documents, Timothy Long, aka Timmy, of Mountain Grove, was a member of the AC, a violent, race-based, and prison-based gang with hundreds of members operating inside and outside of state and federal prisons throughout the country. The AC enforces its rules and promotes discipline among its members, prospects, and associates through threats, intimidation, and acts of violence including murder, kidnapping, and narcotics trafficking. Members are required to follow the orders of higher-ranking members without question.

“This is the final sentencing in a multi-jurisdictional, multi-agency effort to dismantle the Aryan Circle, which terrorized local communities and perpetuated a cycle of gang violence in federal prisons for far too long,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “This case represents the Justice Department’s continued dedication to working with our partners across the country to pursue and eradicate criminal enterprises like the AC.”

In 2018, as part of his membership in the AC, Long stabbed two separate victims while all were housed at U.S. Penitentiary (USP) Lee, a federal prison in Lee County, Virginia. Long stabbed each victim at the direction of AC leadership as retaliation for an attack on a higher-ranking member of the AC by a rival white supremacist gang.  

“Violent gangs like the Aryan Circle present a growing threat to our communities in the Eastern District of Texas and the type of violence associated with these organizations is alarming,” said U.S. Attorney Damien M. Diggs for the Eastern District of Texas. “The Eastern District of Texas will continue to investigate and prosecute those who do harm to others. And we’ll specifically target the leaders of these violent gangs.”

In 2022, two of Long’s co-defendants, AC leaders William Glenn Chunn and Jesse Blankenship, were both sentenced to life in prison for RICO conspiracy and related racketeering charges.

The case was investigated by the following agencies: the Bureau of Alcohol, Tobacco, Firearms and Explosives; Drug Enforcement Administration; Federal Bureau of Prisons; Texas Department of Public Safety; Houston Police Department-Gang Division; Montgomery County (TX) Precinct One Constable’s Office; Homeland Security Investigations; Texas Department of Criminal Justice; New Jersey Department of Corrections-Special Investigations Division; Indiana State Police; Fort Smith (AR) Police Department; Arkansas Department of Corrections; Arnold (MO) Police Department; Jefferson County (MO) Sheriff’s Department; St. Louis Metropolitan Police Department; St. Louis County (MO) Police Department; Indiana Department of Corrections; Carrollton (TX) Police Department; Montgomery County (TX) Sheriff’s Office; Travis County (TX) Sheriff’s Office; Tarrant County (TX) Sheriff’s Office; Evangeline Parish (LA) Sheriff’s Office; Smith County (TX) Sheriff’s Office; McCurtain County (OK) Sheriff’s Office; Montgomery County (TX) District Attorney’s Office; Liberty County (TX) District Attorney’s Office; Harris County (TX) District Attorney’s Office; Mercer County (NJ) Prosecutor’s Office; Evangeline Parish (LA) District Attorney’s Office; and the Sebastian County (AR) District Attorney’s Office. Valuable assistance was provided by the Organized Crime Drug Enforcement Task Forces (OCDETF).

Trial Attorney Rebecca Dunnan of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Christopher Rapp for the Eastern District of Texas prosecuted the case.

This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.

MARSHALL, Texas – An Avinger man has been sentenced to more than 24 years in federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.

Joshua Adam Tolar, 41, pleaded guilty on Jan. 26, 2023, to conspiracy to possess with intent to distribute and distribution of methamphetamine and was sentenced to 292 months in federal prison by Chief U.S. District Judge J. Rodney Gilstrap on July 17, 2023.

According to information presented in court, Tolar was part of a drug trafficking organization responsible for distributing large quantities of methamphetamine in the Marshall area.  On Jan. 12, 2021, law enforcement officers intercepted a package of almost 3 kilograms of methamphetamine that was shipped through the postal service and intended for Tolar.  On May 8, 2021, Tolar was stopped by law enforcement officers and found in possession of 505 grams of methamphetamine and 110 grams of marijuana.  As the importer and distributor of methamphetamine, Tolar was held responsible for conspiring to possess with intent to distribute and distributing multiple kilos of methamphetamine.  Tolar was indicted by a federal grand jury on June 15, 2022, and charged with drug trafficking violations.

This case was investigated by U.S. Department of Homeland Security (Homeland Security Investigations), Texas Department of Public Safety-Criminal Investigations Division, Harrison County Sheriff’s Office, and the U.S. Customs and Border Patrol. The case was prosecuted by Assistant U.S. Attorney Ryan Locker.

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TYLER, Texas – A Houston lawyer has been found guilty of federal violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.

Peter J. Bennett, 48, was found guilty by a jury of money laundering conspiracy, money transmitting conspiracy, and perjury.  The verdict was reached on July 14, 2023, following a week-long trial before U.S. District Judge Jeremy D. Kernodle.

“Lawyers swear an oath to support and uphold the Constitution and the laws of the United States,” said U.S. Attorney Damien M. Diggs.  “This defendant abandoned his oath and used his bar license to launder and transmit the proceeds of a healthcare kickback conspiracy. Let this case serve as a cautionary tale to those who think they can hide criminal conduct behind professional licenses.”

“By facilitating kickbacks, this defendant knowingly enabled theft from Medicare and Medicaid, putting personal profit before legitimate patient needs and ultimately costing taxpayers millions of dollars,” said Jason E. Meadows, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). “Thanks to the strong partnership between federal and state law enforcement agencies, those who attempt to defraud federal health care programs will be held accountable.”

“The Department of Defense Inspector General, Defense Criminal Investigative Service (DCIS) is committed to protecting the integrity of TRICARE, the healthcare system for military members and their families,” said Special Agent-in-Charge Michael C. Mentavlos, DCIS.  “Today’s guilty verdict demonstrates our commitment to partner with the United States Attorney's Office and investigate fraudulent schemes that impact TRICARE and put its beneficiaries at risk.”

According to information presented in court, Bennett created sham trusts and shell corporations through which he laundered at least $2,724,080.41 in healthcare kickback proceeds.  Bennett used his law firm’s Interest on Lawyers Trust Account (IOLTA), operating account, and a personal bank account to launder and transmit the kickback proceeds. The perjury charges arose out of false statements Bennett made in response to interrogatories propounded in Civil Investigative Demands issued by the Department of Justice as part of a False Claims Act (FCA) investigation.  Bennett was indicted by a federal grand jury in February 2022.

This case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General, and the Defense Criminal Investigative Services (DCIS) with assistance from the U.S. Secret Service.  It was prosecuted by Assistant U.S. Attorneys Adrian Garcia, Nathaniel C. Kummerfeld, and Betty Young, with assistance from Assistant U.S. Attorneys James Gillingham and Kevin McClendon.

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BEAUMONT, Texas - A Beaumont man has been sentenced to federal prison for animal cruelty violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.

Decorius Mire, 24, pleaded guilty to animal crushing and aiding and abetting and was sentenced to 18 months in federal prison today by U.S. District Judge Marcia A. Crone.

Animal crushing is defined under federal criminal law as, “actual conduct in which one or more living non-human mammals, birds, reptiles, or amphibians, is purposely crushed, burned, drowned, suffocated, impaled, or otherwise subjected to serious bodily injury.”

According to information presented in court, on October 15, 2021, Mire and a co-defendant encountered a live domestic cat in the parking lot of a Beaumont apartment complex. The co-defendant, encouraged by Mire, kicked the cat as if kicking a football field goal, propelling the cat approximately 15 to 20 feet through the air.  Mire filmed the event with his cellular telephone and posted the video on his social media accounts where it was commented on and shared with others.

Mire was indicted by a federal grand jury on September 28, 2022, and prosecuted under the Preventing Animal Cruelty and Torture (PACT) Act.  Signed into law in November 2019, the PACT Act bans the intentional crushing, burning, drowning, suffocating, impalement or other serious harm to “living non-human mammals, birds, reptiles, or amphibians.”  The law also bans “animal crush videos,” meaning any photograph, motion picture film, video or digital recording or electronic image that depicts animal cruelty.

This case was investigated by the Beaumont Police Department and the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Joseph R. Batte.

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PLANO, Texas – A Frisco man has been sentenced to federal prison for wire fraud violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.

Oscar Simon Ndereva, 45, pleaded guilty to wire fraud and was sentenced to 54 months in federal prison by U.S. District Judge Sean D. Jordan.

According to information presented in court, Ndereva was involved in an intricate scheme to defraud private pay health insurance payors.  Specifically, he used a fraudulent healthcare pharmacy called “Healogix” to submit fraudulent claims.  Ndereva caused the fraudulently obtained funds to be paid directly to bank accounts he opened in the name of another individual.    Over the course of the scheme, Ndereva moved money through various accounts in order to conceal the nature and source of those funds, and also structured check cashing transactions to avoid financial reporting requirements and to evade law enforcement detection.  In all, Ndereva's company Healogix submitted over 780 fraudulent claims totaling over $5 million. 

This case was investigated by the FBI and Health and Human Service – Office of Inspector General.

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TYLER, Texas – The final defendant has been sentenced in an East Texas drug trafficking operation in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.

Darrell Lynell Horace, Jr., 29, pleaded guilty to possession with intent to distribute methamphetamine and was sentenced to 63 months in federal prison today by U.S. District Judge Jeremy D. Kernodle.

According to information presented in Court, Horace and four others admitted to selling methamphetamine in Cherokee County, Texas.  Horace also admitted to possessing a firearm as well as methamphetamine. One of Horace's co-defendants, Pablo Antonio Sandoval, 24, of Bakersfield, California, admitted to transporting large quantities of methamphetamine from California-based suppliers to Jacksonville. Upon delivery, the methamphetamine was repackaged and sold by Hunter Chase Davlin, 27, of Jacksonville, Sissy Gail Parks, 39, of Bullard, and Joshua Ryan Starkey, 30, of Jacksonville. 

Davlin was sentenced to 108 months in prison on February 22, 2023; Parks was sentenced to 70 months in prison on December 14, 2022; Starkey was sentenced to 130 months in prison on November 4, 2022; and Sandoval was sentenced to 170 months in prison on April 18, 2023.

This case was investigated by Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, Cherokee County Sheriff's Department, and the Jacksonville Police Department and prosecuted by Assistant U.S. Attorney Lucas Machicek.

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SHERMAN, Texas – A Denton man has been sentenced to six years in federal prison for child exploitation violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today. 

Michael Ray Guillory, 67, pleaded guilty to child exploitation violations and was sentenced to 72 months in federal prison by U.S. District Judge Amos L. Mazzant.

According to information presented in court, Guillory came to the attention of law enforcement when it was discovered that he was chatting with a 13-year-old child on an online social media platform.  The messages from Guillory were sexually charged and included descriptions of the sex acts Guillory wanted to perform on the child when they met in person.  In support of his interest, Guillory sent the child a number of pornographic images and videos, depicting the sex acts he described.  Through investigation, law enforcement determined that Guillory had been engaging in similar chats with other suspected minors.  Officers also discovered that Guillory is a registered sex offender in Denton County due to prior convictions for solicitation of a minor to commit sexual assault and possession of child pornography.

Guillory pleaded guilty to two counts of transferring obscene material to minors and was sentenced to 6 years of imprisonment on each count, to be served concurrently. 

“Through social media platforms, predators like this defendant have access to our children’s bedrooms from anywhere in the country,” said U.S. Attorney Damien M. Diggs.  “Repeat offenders like Mr. Guillory demonstrate an unwillingness or inability to stop committing these crimes, further contributing to the trauma already inflicted on child victims. Today’s sentence demonstrates the commitment of both state and federal law enforcement to make our children safer by ensuring that dangerous repeat offenders like Mr. Guillory are in prison where they belong.”

“This defendant preyed on innocent children without regard for the long-lasting harm his actions would cause,” said Lester R. Hayes Jr., Special Agent in Charge HSI Dallas. “HSI will never relent in our commitment to identifying and prosecuting those who exploit and victimize children.”  

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

This case was investigated by Homeland Security Investigations, Denton Police Department, and West Jordan, Utah Police Department and prosecuted by Assistant U.S. Attorneys Marisa J. Miller.

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SHERMAN, Texas – A Waco woman has been sentenced to 10 years in federal prison for identity theft and credit card fraud in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.

Ashley Renee Cagle, 43, pleaded guilty to aggravated identity theft and access device fraud and was sentenced to 120 months in federal prison by U.S. District Judge Amos Mazzant.

According to information presented in court, Cagle was arrested by McKinney Police Department officers in May of 2021 when she was found to be in possession of stolen United States mail along with multiple credit and debit cards.  Further investigation showed that Cagle engaged in wire fraud when she passed a check using another person’s driver license number at a Wal Mart in the Eastern District of Texas.  According to information presented during the sentencing hearing, six businesses suffered financial losses as a result of Cagle’s fraudulent check passing scheme.  During the sentencing hearing, Judge Mazzant noted Cagle’s extensive criminal history and the need for protection of the public when he sentenced Cagle to a term of ten years in federal prison. 

“This case is an example of the hard work of the U.S. Postal Inspection Service and the U.S. Secret Service investigating identity theft, wire fraud, and mail theft and bringing these cases to prosecution by the U.S. Attorney's Office,” said U.S. Attorney Damien M. Diggs.  “Identity theft causes harm not only to businesses who are defrauded, but to those individuals whose private information is used to carry out the crime.  The U.S. Attorney's Office will continue to partner with federal and local law enforcement to investigate and vigorously prosecute these offenses.”

This case was investigated by the U.S. Postal Inspection Service, the U.S. Secret Service and the McKinney Police Department.

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BEAUMONT, Texas - A Lumberton man has pleaded guilty to federal child exploitation charges in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.

Adam Dale Isaacks, 40, pleaded guilty to four counts of transporting a minor for purposes of sexual activity today before U.S. District Judge Marcia A. Crone. 

According to information presented in court, on Dec. 13, 2021, the Jasper County Sheriff’s Office responded to an Evadale home in reference to a report of several sexual assaults.  As the investigation progressed, Isaacks was identified as the assailant.  Isaacks, a youth baseball coach and president of the Evadale Little League Baseball organization and a trusted member of the community, was reported to have sexually assaulted eight minor members of his baseball team.  The boys were between 9 and 11 years old the time of the offenses.  The investigation revealed instances where several minor victims were transported by Isaacks from the Eastern District of Texas outside the state.  While outside the State of Texas, Isaacks engaged in illicit sexual conduct with the minor victims.  The trips were verified with records from airlines, credit card information, photos, and witnesses.

Under federal statutes, Isaacks faces a minimum of 10 years and up to life in federal prison as sentencing.  The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.

case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

This case is being investigated by the FBI, the Sabine County Sheriff’s Office, the Jasper County Sheriff’s Office, and the San Augustine County Sheriff’s Office.  This case is being prosecuted by Assistant U.S. Attorney Rachel Grove.

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TYLER, Texas - A Jacksonville, Texas man has been convicted of federal sex trafficking violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.

Desnique Deshawn Herndon, 27, was convicted of six counts of sex trafficking of children and one count of conspiracy to commit sex trafficking of children. Herndon was found guilty of all counts by a jury following a five-day trial before U.S. District Judge J. Campbell Barker.

According to information presented in court, beginning in 2019, Herndon engaged in trafficking multiple teenage girls for commercial sex acts. Herndon recruited the girls by social media, deceived them by promising riches, and placed them in hotels in the Tyler area.  He then posted advertisements on sex trafficking websites showing explicit photos of the girls and offering commercial sex acts.  Some of Herndon’s victims were as young as 13 years old. During trial, jurors heard testimony that Herndon used co-conspirators to continue to run his operation while he was in jail so that the victims could earn money to pay his bond.

Three of Herndon's co-conspirators previously pleaded guilty for their roles in the offenses. Malcolm Kadeem Roberts, 27, of Tyler, pleaded guilty on October 4, 2022, to conspiracy to commit sex trafficking of children.  Roberts also faces pending aggravated sexual assault of a child charges in Smith County for his conduct in relation to one of the minor victims in this case.  Patrick Lamont Cross, Jr, 27, of Palestine, Texas pleaded guilty on August 22, 2022, to conspiracy to commit sex trafficking of children.  Tavarus D. Watkins, 27, of Jacksonville, Texas, pleaded guilty on August 9, 2022, to interstate transport of a minor for illegal sexual activity.

Under federal statutes, Herndon faces up to life in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

This case was investigated by Homeland Security Investigations’ Tyler Resident Agency, the FBI Tyler Resident Agency, Texas DPS Criminal Investigations Division, the Texas Attorney General’s Human Trafficking Unit, Tyler Police Department, Henderson County Sherriff’s Office, Cherokee County Sherriff’s Office, the Jacksonville Police Department, and the Texas Department of Public Safety Crime Lab.  This case was prosecuted by Assistant U.S. Attorneys Ryan Locker and Alan Jackson, and Special Assistant U.S. Attorney Bryan Jiral.

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FORT WORTH, Texas– A 58-year-old federal inmate has been sentenced for threatening a federal prosecutor and United States district judge, announced Eastern District of Texas U.S. Attorney Damien M. Diggs today.

Kevin Dean Riedle was sentenced to an additional 120 months in federal prison for retaliating against a United States judge and a federal law enforcement officer. 

According to information presented in court, Riedle was previously convicted and sentenced in the Northern District of Texas for transporting and shipping child pornography.  In 2022, while serving time in federal prison in Loretto, PA, Riedle mailed multiple letters to the Assistant United States Attorney who prosecuted him and to the United States district judge who sentenced him.  In these letters, Riedle threatened, in gruesome detail, to violently murder the prosecutor, the judge, and their families in retaliation for his previous conviction and sentence.

This case was investigated by the Federal Bureau of Investigation and the U.S. Marshals Service and prosecuted by Eastern District of Texas Assistant U.S. Attorney Sean J. Taylor.      

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SHERMAN, Texas– A Lubbock, Texas man has been sentenced to federal prison for drug trafficking violations, announced Eastern District of Texas U.S. Attorney Damien M. Diggs today.

Michael Calzadias, 42, pleaded guilty to conspiracy to possess with intent to distribute more than five kilograms of cocaine and money laundering and was sentenced to 320 months in federal prison by U.S. District Judge Amos L. Mazzant on June 20, 2023.     

According to information presented in court, between 2017 and 2018, Calzadias, along with Mark Anthony and Thomas Calzadias, were the main sources of supply for over 450 kilograms of cocaine, which was imported from Mexico, and transported from the Rio Grande Valley, Texas, to St. Louis, Missouri; Danville, Virginia; Greenville, South Carolina; Atlanta, Georgia; Fort Meyers, Florida; and other areas. Mark Anthony Calzadias, Michael Calzadias, and Thomas Calzadias were also responsible for bulk currency smuggling throughout the United States. 

Mark Calzadias and Thomas Calzadias were previously sentenced to 420 and 235 months in federal prison respectively. 

This effort is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. This is part of the Tres Toros OCDETF investigation.  A joint investigation by DEA Dallas and DEA Lubbock.  Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

These cases were prosecuted by Assistant U.S. Attorney Ernest Gonzalez.                                                                                                                

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TYLER, Texas – A Tyler man has been sentenced to 10 years in federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.

Devonte Ladarius Davis, 29, pleaded guilty to possession with intent to distribute and distribution of fentanyl near a school or college and was sentenced to 120 months in federal prison today by U.S. District Judge J. Campbell Barker.

According to information presented in court, on August 18, 2021, Davis sold approximately 102 pills to a person working with law enforcement.  The pills were found to contain approximately 55 grams of fentanyl.  This distribution occurred at a Tyler location within 1,000 feet of a public junior college. 

In all, Davis was responsible for the possession and intent to distribute 109 grams of pills containing fentanyl and 98 grams of methamphetamine.  Davis was indicted by a federal grand jury on March 24, 2022 and charged with drug trafficking violations. 

This case was investigated by the FBI, the Tyler Police Department and the Smith County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Alan Jackson. 

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TYLER, Texas – A Longview man has been sentenced to nine years in federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.

Dimitri Aaron Reynoso, 48, pleaded guilty on Nov. 28, 2022, to possession with intent to distribute and distribution of methamphetamine and was sentenced to 108 months in federal prison today by U.S. District Judge J. Campbell Barker.

According to information presented in court, Reynoso was trafficking various types of controlled substances, including methamphetamine, cocaine, marijuana, and pills laced with fentanyl in and around Longview and Tyler.  During the course of a joint state and federal investigation, law enforcement officers purchased methamphetamine from Reynoso on multiple occasions.  On January 25, 2022, Reynoso sold 82.63 grams of methamphetamine for $1,000.  On February 9, 2022, Reynoso sold 7.7 grams of methamphetamine for $140.  Reynoso aborted the sale of one pound of methamphetamine on March 1, 2022.  On May 19, 2022, Reynoso agreed to sell 8 ounces of methamphetamine to law enforcement.  Upon observing Reynoso before the meeting in Longview, Reynoso was arrested and found to be in possession of 211.3 grams of methamphetamine and approximately one ounce of marijuana.  Reynoso was held responsible for distributing and possessing with intent to distribute 301 grams of methamphetamine.  On July 20, 2022, Reynoso was indicted by a federal grand jury and charged with drug trafficking violations.

This case was investigated by U.S. Department of Homeland Security-Homeland Security Investigations, Texas Department of Public Safety-Texas Highway Patrol, Smith County Sheriff’s Office, Longview Police Department, Gregg County Sheriff’s Office, Gregg County Organized Drug Enforcement Unit, and the East Texas Anti-Gang Center. The case was prosecuted by Assistant U.S. Attorney Allen Hurst. 

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PLANO, Texas– A Trophy Club man has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.

Doug McKelvey, 58, pleaded guilty to money laundering charges before U.S. Magistrate Judge Kimberly C. Priest Johnson on June 6, 2023.

According to information presented in court, from 2009 to 2022, McKelvey, a vice-president and financial advisor at Morgan Stanley, misappropriated at least $1.5 million of investor funds held in brokerage accounts.  The funds were supposed to be invested on behalf of his clients.  Instead, McKelvey used the funds to pay for personal trips, cruises, restaurants, salons, and other personal expenses.

McKelvey faces up to 10 years in federal prison.  The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors.  A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.

This case is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Anand Varadarajan.

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PLANO, Texas – A Plano dentist has been sentenced to federal prison for COVID-19 relief related violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.

Brian Bui, 43, pleaded guilty to wire fraud and was sentenced to 18 months in federal prison today by U.S. District Judge Sean D. Jordan.

According to court documents, Bui used his dentistry business to obtain at least two Paycheck Protection Program (PPP) loans by submitting materially false application paperwork, including fabricating supporting documentation and lying about the number of employees and monthly payroll expenses.  As a result of his conduct, he obtained approximately $1.89 million in forgivable loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.  Bui used the funds in a manner not authorized by the program, including for non-business, personal investments.  Bui was also ordered to pay restitution in the amount of $1,491,305.97.

This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Anand Varadarajan.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

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BEAUMONT, Texas – A Diboll man has been sentenced to over 13 years in federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.

Gonzalo Alonso Torres, 46, pleaded guilty on July 14, 2022, to possession with intent to distribute methamphetamine and was sentenced to 162 months in federal prison today by U.S. District Judge Marcia A. Crone.

According to information presented in court, in 2019, local, state, and federal law enforcement began investigating Torres’ drug trafficking activities.  On Sep. 18, 2019, law enforcement was able to set up a methamphetamine purchase between Torres and another person.  Torres placed the methamphetamine in a mailbox for the customer to retrieve.  Officers then confiscated the drugs.  In October 2019 on two separate occasions law enforcement again arranged for the purchase of methamphetamine using another person.  Torres was indicted by a federal grand jury on April 6, 2022 and charged with federal drug trafficking violations.

This case was investigated by the U.S. Drug Enforcement Administration, the Texas Department of Public Safety, the Diboll Police Department, and the Angelina County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Donald S. Carter. 

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BEAUMONT, Texas – A Nacogdoches man has been sentenced to 12 years in federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.

Brandon Spears, 38, pleaded guilty on April 20, 2022, to conspiracy to distribute methamphetamine and was sentenced to 144 months in federal prison today by U.S. District Judge Marcia A. Crone.

According to information presented in court, Spears was part of a trafficking organization responsible for trafficking at least 44 grams of methamphetamine in the Nacogdoches area.  During the 2 ½ year investigation, law enforcement officers purchased methamphetamine from Spears on multiple occasions.  During one attempted sale of methamphetamine, Spears and co-defendant, Angel Aguilar, were out of stock so they provided the buyer with a firearm and pills containing a mixture of cocaine and methamphetamine as collateral towards the future purchase of methamphetamine.  The firearm given as collateral was later confirmed to be stolen.  At sentencing, Spears forfeited three firearms seized by law enforcement during the investigation.  Aguilar was previously sentenced to 180 months in federal prison.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Nacogdoches Police Department and prosecuted by Assistant U.S. Attorney Donald S. Carter. 

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BEAUMONT, Texas – A New Orleans, Louisiana man has been named in a federal indictment charging him with carjacking and firearms violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today. 

Aubrey Young, 36, was charged with carjacking, possession of a firearm by a felon, and using a firearm during a crime of violence.  A federal grand jury returned the indictment on May 3, 2023.  Young appeared before U.S. District Judge Marcia A. Crone today on those charges.  Young is scheduled to appear for a detention hearing on May 25, 2023.

According to the indictment, on Oct. 26, 2022, law enforcement officers responded to a call regarding a stolen car, taken at gunpoint.  The suspect allegedly approached two individuals in Vidor, pulled a gun from his backpack and demanded the keys to their vehicle.  The vehicle was spotted near Anahuac and a high-speed chase ensued involving officers from the Chambers County Sheriff’s Office and the Texas Department of Public Safety.  Young, the sole occupant of the vehicle, was arrested and a firearm was located in the vehicle.  Further investigation revealed Young is a convicted felon and prohibited by a federal law from owning or possessing firearms or ammunition. 

If convicted, Young faces up to 22 years in federal prison.

This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime.  Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them.  As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.  This case is being investigated by the Vidor Police Department, Chambers County Sheriff’s Office, Texas Department of Public Safety and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorney Rachel Grove.

A grand jury indictment is not evidence of guilt.  All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

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PLANO, Texas – A Dallas man has been sentenced to 14 years in federal prison for drug trafficking violations related to a 2021 overdose death, announced Eastern District of Texas U.S. Attorney Damien M. Diggs today.

Robel Habtemariam, 20, pleaded guilty to possession with intent to manufacture and deliver fentanyl and was sentenced to 168 months in federal prison on May 19, 2023, by U.S. District Judge Sean D. Jordan.

According to information presented in court, on March 16, 2021, law enforcement authorities responded to a parking lot regarding an unconscious person. Upon arrival, they found the victim lying on the ground just outside of a vehicle with two teenagers attempting to move him into the vehicle.  The victim was administered Narcan and was transported to a hospital where he died.    An investigation revealed that Habtemariam provided the victim with a pill and had left the scene before law enforcement arrived.  Habtemariam returned to the scene at the request of officers and granted consent to search his vehicle. Officers located 25 pills that appeared to be Oxycodone but were later determined to be “pressed” pills containing Fentanyl.  The investigation determined that Habtemariam provided one of the pills to the victim which caused his overdose.  Instead of calling 911, Habtemariam called the victim’s girlfriend and left the scene. Habtemariam ultimately identified his original source of supply as Antonio Havis. Havis was previously convicted and sentenced to 20 years in federal prison by Judge Jordan on December 9, 2022.   

“Fentanyl overdose deaths are tragic and heartbreaking,” said U.S. Attorney Damien M. Diggs.  “As long as fentanyl plagues our community and causes tragic, unnecessary deaths, we will continue to aggressively investigate and prosecute overdose cases.  Friday’s sentencing of Robel Habtemariam sends a clear message that this Office and our state and federal law enforcement partners will continue to prosecute and hold accountable dealers who distribute this poison, exploit addictions, and cause senseless deaths in the Eastern District of Texas.”

“Today’s sentence is just another consequence of deadly illicit fentanyl in our neighborhoods,” said Eduardo A. Chávez, Special Agent in Charge of DEA Dallas.  “Mr. Habtemariam will spend the next 14 years in federal prison because of one deadly pill.  Because of that same pill, a life was lost and families have been forever changed.  DEA Dallas and our law enforcement partners throughout the region will continue to investigate overdose and poisoning deaths and bring those responsible to justice; however, every one of us must do our part to prevent and educate others that truly One Pill Can Kill.”

This case was investigated by the U.S. Drug Enforcement Administration, Rowlett Police Department and the Rowlett Fire and Emergency Services and prosecuted by Assistant U.S. Attorney Matthew T. Johnson. 

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SHERMAN, Texas – A Denton physician has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.

Stanley Charles Evans, 63, pleaded guilty on Sep. 12, 2022, to conspiracy to distribute and dispense controlled substances and health care fraud and was sentenced to 40 months in federal prison today by U.S. District Judge Sean Jordan.

“Over prescribing opioids has wreaked havoc on our country over the years, and we’ve seen devastating losses in Texas relating to opioid overdoses,” said U.S. Attorney Damien M. Diggs.  “This doctor took an oath to do no harm, yet he chose to become an illegal drug dealer by over prescribing powerful drugs.  It is my hope that this case sends a powerful message to doctors who are thinking about engaging in such conduct.”   

“Using one’s trusted status as a medical professional for unlawful acts cannot go unpunished,” said Eduardo A. Chávez, Special Agent in Charge of the DEA Dallas “Today’s sentence demonstrates how Mr. Evans is being held accountable for his actions. DEA Dallas will continue to aggressively pursue medical professionals who disregard their oath to do no harm.”

According to information presented in court, beginning in 2017, Evans, a licensed physician operating a family medicine practice in Denton, unlawfully prescribed approximately 370,000 dosage units of hydrocodone outside the usual course of professional practice and without a legitimate medical purpose.  An investigation began after it was reported that Evans was pre-signing opioid prescriptions for patients that were exhibiting drug seeking behavior.  Evans would pre-sign the scripts and the patients would be seen by his four nurse practitioners.  An investigation revealed patients were repeatedly able to obtain the strongest prescription for Hydrocodone from Evans and one of the nurses without ever being fully examined or providing any documentation regarding their “pain.”  It was also determined that Evans was only present at the office approximately half the time he claimed and that prescriptions for Schedule II opioids were being written for patients even while Evans was out of the country on vacation.  The investigation also revealed that nurses were seeing 20 to 30 patients a day and their salaries were production based, receiving a percentage of what they billed instead of a set salary.  Additionally, nurses were billing Medicare and TriCare under Evans’ medical identification number, which results in an increased charge to the government for physician services. 

This case was investigated by the U.S. Drug Enforcement Administration Diversion Task Force Group, Department of Defense Criminal Investigative Services, and Health and Human Services – Office of Inspector General.  This case was prosecuted by Assistant U.S. Attorney Matthew T. Johnson.

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SHERMAN, Texas – A Sherman man has been convicted of federal violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.

Brian Deboris Black, 32, was convicted of conspiracy to interfere with interstate commerce by robbery; robbery; conspiracy to kidnap; and two counts of carrying and brandishing a firearm during a crime of violence.  Black was found guilty of all counts by a jury following a three-day trial before U.S. District Judge Jeremy D. Kernodle.

According to information presented in court, on Oct. 3, 2020, Black, along with two others, robbed a Dollar General store in Tom Bean, Texas.  During the robbery, Black brandished a firearm and threatened to kill the three employees in the store if they did not comply with his demands.  On Oct. 13, 2020, Black and several others, committed a home invasion robbery in Mansfield, Texas.  They entered the home at gunpoint, kidnapped three family members and restrained them with zip ties, and demanded money while threatening to kill them if they did not comply.  Black shot the homeowners’ son when he was able to free himself from the zip ties.  The victim survived the shooting, but with permanent injuries.  Co-defendant testimony, DNA, and cell phone analysis were instrumental in establishing that Black brandished the firearm while committing both offenses.

“The Department of Justice will continue to use every resource at its disposal to address violent crimes occurring in our communities,” said U.S. Attorney Damien M. Diggs.  “This outcome should serve as a message that individuals who use firearms to harm or injure others will be prosecuted and held accountable in federal court.” 

“The FBI remains laser focused on working with our law enforcement partners to counter violent crime wherever it occurs. In this case, our agents and task force officers combined the use of cutting-edge technologies and traditional investigative methods to achieve a significant verdict against a violent offender. I’m grateful that our community has been made safer by their work,” said FBI Dallas Special Agent in Charge Chad Yarbrough.

Black faces up to life in federal prison at sentencing.  The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors.  A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.

This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime.  Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them.  As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

This case was investigated by the FBI’s Sherman Resident Agency, Tom Bean Police Department, Whitewright Police Department, Sherman Police Department, Tarrant County Sheriff’s Office, Tarrant County Medical Examiner’s Office, and the Texas Department of Public Safety Crime Lab.  This case was prosecuted by Assistant U.S. Attorneys Ernest Gonzalez and Tracey Batson.

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SHERMAN, Texas – Damien M. Diggs has taken the oath of office to become the United States Attorney for the Eastern District of Texas.  Diggs was nominated by President Joe Biden on Feb. 2, 2023 and confirmed by the U.S. Senate on May 4, 2023.  He took the oath of office on May 7, 2023 from Chief U.S. District Judge Rodney Gilstrap.                                   

Diggs, 47, of Frisco, is the chief federal law enforcement official in the Eastern District of Texas, which includes 43 counties stretching from the Oklahoma border to the Gulf of Mexico. The district includes six fully staffed offices in Beaumont, Plano, Tyler, Sherman, Texarkana, and Lufkin with 103 employees, including 53 prosecutors.  Diggs is responsible for the prosecution of federal criminal offenses in the district and will represent the United States in all civil litigation in the district.

“I am honored to have been nominated by President Biden and confirmed by the Senate,” said U.S. Attorney Diggs.  “I’m excited to continue serving the public in this role and ensuring that justice is served for the citizens in the 43 counties that make up the Eastern District of Texas. 

Diggs has served as an Assistant U.S. Attorney in the Northern District of Texas since 2018 where he was assigned to the criminal division’s violent crime section prosecuting firearms violations and fraud matters.  Prior to that, he worked as an assistant U.S. attorney in Washington, D.C. from 2012 to 2018.  From 2007 to 2012, he was an attorney with the Department of Education.  Diggs was also an associate at Hogan & Hartson for two years before beginning his service with the federal government.

Diggs earned his Bachelor of Science in political science and government from Towson University’s College of Liberal Arts in 1998 and his law degree from American University’s Washington College of Law in 2003. 

Today, Diggs was honored to have his family and friends by his side as he took his ceremonial oath of office from U.S. District Judge Amos Mazzant. 

For more information about the U.S. Attorney’s Office for the Eastern District of Texas, please visit https://www.justice.gov/usao-edtx. 

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TEXARKANA, Texas – A Temecula, California, man has been found guilty of federal violations related to a health care kickback scheme in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.

Steven Donofrio, 49, was found guilty by a jury on May 5, 2023, following a two-week trial before U.S. District Judge Robert W. Schroeder, III.

“This is the last of many defendants in this case who abused our healthcare system for the sake of stealing taxpayer dollars and in the process caused unnecessary medical procedures,” said U.S. Attorney Damien M. Diggs.  “Protecting citizens from physical and financial harm is always a top priority for law enforcement and parasites like Donofrio, who prey on vulnerable citizens, will be brought to justice.”

“The reach of HHS/OIG is far and wide. Our agents and law enforcement partners will not be deterred by the scope of a healthcare fraud investigation or the location of its defendants,” said Jason E. Meadows, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General, Dallas Region. “Donofrio and others stole millions from American taxpayers for medically unnecessary services and all to line the pockets of greedy individuals across the country.  HHS/OIG and our partners remain laser-focused in our pursuit of those who use the Medicare trust fund as their own personal piggy bank.”

“Illegal kickback schemes corrupt the healthcare system by causing billions of dollars in losses each year. They also directly affect patients who expect to receive quality care and to be billed for legitimate services from their health care providers,” said FBI Dallas Special Agent in Charge Chad Yarbrough. “We will continue to work tirelessly with our law enforcement partners to hold those who commit healthcare fraud accountable and seek justice for the patients that are harmed as a result of these schemes.”

According to information presented in court, Donofrio conspired with others to pay and receive kickbacks in exchange for the referral of, and arranging for, health care business, specifically pharmacogenetic (PGx) tests.  Pharmacogenetic testing, also known as pharmacogenomic testing, is a type of genetic testing that identifies genetic variations that affect how an individual patient metabolizes certain drugs.  The illegal arrangement concerned the referral of PGx tests to clinical laboratories in Fountain Valley, California; Irvine, California; and San Diego, California.  More than $28 million in illegal kickback payments were exchanged by those involved in the conspiracy.

In December 2019, twelve individuals from three states were charged for their roles in the kickback conspiracy.  A federal grand jury in the Eastern District of Texas returned an indictment against Philip Lamb, 48, of Eagle, Colorado; Nicolas Arroyo, 41, of Tempe, Arizona; Vincent Marchetti, Jr., 58, of Coronado, California; William Flowers, 58, of Houston, Texas; Steven Donofrio; James J. Walker, Jr. a/k/a Jimmy Walker, 49, of Frisco, Texas; Timothy Armstrong, deceased, formerly of Frisco, Texas; Virginia Blake Herrin, 57, of Frisco, Texas; Patrick Ridgeway, 53, of Jackson, Mississippi; Chismere Mallard, 42, of McAllen, Texas; Dr. Ray W. Ng, 65, of Dallas, Texas; and Ashley Kretzschmar, 37, of Aledo, Texas; for conspiring to commit illegal remunerations in violation of the Anti-Kickback Statute.

Philip Lamb, Nicolas Arroyo, Jimmy Walker, Timothy Armstrong, Virginia Blake Herrin, Patrick Ridgeway, Chismere Mallard, and Ashley Kretzschmar pleaded guilty prior to trial.  Kimberly Willette, 61, of Friendswood, Texas, and Edwin Chad Isbell, 50, of Atascocita, Texas also pleaded guilty to related charges.

Vincent Marchetti, Jr., was found guilty by a jury on December 16, 2021, following a month-long trial.  He was sentenced to 48 months in federal prison on August 30, 2022.

On April 25, 2022, Nicolas Arroyo was sentenced to 21 months in federal prison.  On August 23, 2022, Kimberly Willette was sentenced to one year and one day in federal prison, and Patrick Ridgeway was sentenced to a three-year term of probation and ordered to pay a $100,000 fine.

The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remunerations in exchange for the referral of or arranging for or recommending the ordering of items or services payable under federal health care programs.  Under federal statutes, violations of the Anti-Kickback statute are punishable by up to five years in federal prison.

This case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General, and the FBI Dallas – Frisco Resident Agency.  It was prosecuted by Assistant U.S. Attorneys Nathaniel C. Kummerfeld, Lucas Machicek, and Adrian Garcia, with assistance from Assistant U.S. Attorneys Stephan E. Oestreicher, Jr., Brent Andrus, and L. Frank Coan, Jr., and Special Assistant U.S. Attorney Laurel E.P. Simmons.

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SHERMAN, Texas – An Oklahoma City, OK woman has been convicted of various federal crimes related to an international drug trafficking conspiracy in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.

Debra Lynn Mercer-Erwin, 60, was found guilty by a jury following a two-week trial before U.S. District Judge Amos Mazzant.  Mercer-Erwin was convicted of money laundering; wire fraud; conspiracy to manufacture and distribute cocaine; and conspiracy to manufacture and distribute cocaine knowing it would be imported into the United States.

“In the aircraft world, planes registered in the United States and displaying a ‘N’ tail-number, are coveted as being properly vetted and trusted to legally operate around the world.  Mercer-Erwin found ways to exploit the registration process in order to profit from illegally obtained money being paid for her services,” said U. S. Attorney Featherston.  “Mercer-Erwin became a drug dealer when she became aware of planes she had registered were being used to transport large quantities of cocaine.   Mercer-Erwin knew that many of her clients were in the illegal drug business and she hid their identities and the sources of their money in order to reap a large profit.  She became a money launderer when she created fake sales of planes that were not actually for sale in order to hide and move drug money.  Transnational criminal organizations require assistance to operate in the U.S. and Mercer-Erwin facilitated the drug dealing by exploiting the plane registration process.”

“This investigation required cooperation between our international partners, investigating agents and our prosecutors,” added U.S. Attorney Featherston.  “They did an amazing job putting the case together, and they are to be commended for their work.”

“This guilty verdict stems from the collaborative efforts of our trusted international, federal, state and local law enforcement partners,” said Lester R. Hayes Jr., Special Agent in Charge HSI Dallas. “Disrupting the illegal activities of transnational criminal organizations is one of HSI ‘s highest priorities and is enhanced by our partnerships at all levels. After listening to testimony of high-ranking leaders of the Columbian and Nicaraguan governments, I am convinced this investigation has significantly decreased the flow of narcotics smuggled into the U.S.”

“This investigation and successful prosecution serves as an example of how federal, state, and international law enforcement agencies work together to take down those involved in large scale money laundering in support of international drug trafficking organizations,” said Special Agent in Charge Trey McClish of the Dallas Field Office of the Department of Commerce’s Office of Export Enforcement (OEE).   “OEE and our law enforcement partners will continue to identify, investigate, and dismantle transnational criminal organizations who pose a threat to our national security.” 

According to information presented in court, between 2010 and 2020, Mercer-Erwin conspired with others to enable the distribution of cocaine in the United States by purchasing and illegally registering aircraft under foreign corporations and other individuals for export to other countries.  Non-US citizens are allowed to register an aircraft with the FAA if the aircraft is placed in a trust that is managed by a U.S. trustee. Mercer-Erwin was the owner of Wright Brothers Aircraft Title (WBAT) and Aircraft Guaranty Corporation (AGC). WBAT often served as an escrow agent for transactions involving AGC and was the designated party responsible for FAA filings related to AGC aircraft. AGC, a corporation at that time operating out of Onalaska, Texas, an east Texas town in the Eastern District of Texas, without an airport.  AGC acted as trustee to over 1,000 aircrafts with foreign owners. This allowed the foreign nationals to receive an “N” tail number for their aircrafts. The “N” tail number is valuable because foreign countries are less likely to inspect a U.S.-registered aircraft for airworthiness or force down an American aircraft.   

According to prosecutors, several of the illegally registered and exported aircraft were used by transnational criminal organizations in Colombia, Venezuela, Ecuador, Belize, Honduras, Guatemala, and Mexico to smuggle large quantities of cocaine destined for the United States.  The illicit proceeds from the subsequent drug sales were then transported as bulk cash from the United States to Mexico and used to buy more aircraft and cocaine. Aircraft purchases were typically completed by foreign nationals working for transnational criminal organizations who came to the United States with drug proceeds and purchased aircraft valued in the hundreds of thousands of dollars. 

Mercer-Erwin exploited her position as trustee to circumvent U.S. laws by disguising the true identity of the foreign owners, failing to conduct due diligence as to the identity of the foreign owners, providing false aircraft locations, and falsifying and forging documents. Trial testimony revealed the investigation was initiated after aircraft filing irregularities were discovered in tandem with numerous AGC aircraft found carrying substantial amounts of cocaine. The testimony further revealed additional aircraft in AGC’s trust were not seized but found by foreign officials destroyed or abandoned near clandestine landing strips in several South American countries. Some of these wrecked or abandoned aircraft still contained muti-ton kilos of cocaine onboard, and few, if any, of the seized or destroyed aircraft were in the location they were reported to be located. When authorities confronted Mercer-Erwin as the representative of AGC, she refused to comply and each time law enforcement would seize an AGC registered aircraft laden with drugs, Mercer-Erwin attempted to distance herself from the narcotic’s trafficking by transferring ownership of the aircraft using fictitious information to conceal the nature, location, source, ownership, and control of the aircraft. 

Additionally, Mercer-Erwin and co-defendants participated in a series of bogus aircraft sales transactions in order to conceal the movement of illegally obtained funds. The co-defendants would provide buyers and investors with fabricated documents and supply false representations regarding the bogus sale of an unsellable aircraft. The aircraft was unsellable because, unbeknownst to the buyers, the true owners of the aircraft had no knowledge or intention of selling the aircraft. Other bogus sales presented to buyers consisted of aircraft that was owned by a commercial airline and previously decommissioned and inoperable. None of the aircraft presented to the buyers were for sale.

The defendants would convince the buyer to place a deposit into an escrow account with WBAT, the title company owned by Mercer-Erwin, pending the completion of the sale. Once the money was placed in WBAT’s escrow account, the buyers were responsible for the interest accrued, and an escrow fee would be charged. In a typical sale, the deposit would remain in the escrow account. However, Mercer-Erwin would transfer the money from the escrow account to bank accounts controlled by the co-conspirators.

Since the aircraft was not truly for sale, the purchase of the aircraft would inevitably fall through, and the deposit would have to be returned. The co-conspirators would repeat the process by luring another buyer for the purchase of another unsellable aircraft. Each transaction would pay for the previous one, and Mercer-Erwin would receive an escrow fee ranging from $25,000 to $150,000 for her participation in the scheme.

Mercer-Erwin was the only defendant to proceed to trial. Co-defendants Kayleigh Moffett and Carlos Rocha Villaurrutia pleaded guilty on April 10, 2023. Moffett pleaded guilty to wire fraud and conspiracy to commit export violations, and Villaurrutia pleaded guilty to conspiracy to manufacture and distribute cocaine knowing it would be unlawfully imported into the United States; conspiracy to commit money laundering; and conspiracy to commit export violations. Four other defendants have active arrest warrants but are not in custody and are presumed innocent until proven guilty.

Mercer-Erwin was indicted by a federal grand jury in February 2021.  She faces up to life in federal prison.  The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors.  A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.

This is an Organized Crime Drug Enforcement Task Force (OCDETF) case and is being investigated by Homeland Security Investigations (Dallas, Brownsville, Laredo, Guatemala, Colombia, Honduras, Mexico, and Transnational Criminal Investigative Units); Department of Commerce, Bureau of Industry and Security (Dallas and Houston offices); Department of Transportation Office of Inspector General (DOT-OIG); Office of Export Enforcement; Polk County Constable Precinct 1; Southeast Texas Export Investigations Group; Internal Revenue Service; Federal Aviation Administration (FAA); Estado Mayor De La Defensa Nacional Guatemala; Fuerza Aerea Guatemalteca; and Fuerza Aerea Colombiana.  OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

This case was prosecuted by Assistant U.S. Attorneys Ernest Gonzalez, Heather Rattan, and Lesley Brooks. 

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