Eastern District of Texas

BEAUMONT, Texas – A Nacogdoches man has been sentenced to federal prison for drug trafficking and firearms violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.

Angel Aguilar, 25, pleaded guilty on July 12, 2022 to conspiracy to possess with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime.  Aguilar was sentenced to 180 months in federal prison by U.S. District Judge Marcia Crone on April 27, 2023.    

According to information presented in court, Aguilar was a member of a drug trafficking organization distributing large quantities of methamphetamine and other narcotics in the Nacogdoches area. During the investigation, law enforcement agents were able to purchase methamphetamine from Aguilar on multiple occasions.  During Aguilar's distribution of methamphetamine, he provided a stolen firearm as collateral towards the future purchase of methamphetamine.

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. The defendant faced up to life at sentencing.

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.

###

McALLEN, Texas – A 35-year-old McAllen resident has been ordered to federal prison following his conviction for robbery of a motor vehicle with intent to cause serious harm or death, announced U.S. Attorney Alamdar S. Hamdani.

Fidel Garza Jr. pleaded guilty Feb. 15.

Today, U.S. District Judge Micaela Alvarez handed Garza a 85-month term of imprisonment to be immediately followed by three years of supervised release. At the hearing, the court heard additional evidence regarding Garza’s criminal history, including prior felony convictions for discharging a firearm in 2016 and being a felon in possession of a firearm in 2021.

On Nov. 25, 2021, Garza was on the 1200 block of 28th street riding in the passenger seat of a truck which pulled in front of an SUV and stopped. A 67-year-old man was driving that vehicle. Garza exited the passenger side of the truck and approached the SUV. He then pointed a handgun at the driver and demanded he and his three minor passengers get out of the vehicle. Fearing for their lives, they complied. Garza then entered the SUV and fled the scene. 

Law enforcement tracked him to a rural location in Edinburg. They arrested him in December 2021, at which time he admitted his role in the robbery.

He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

The McAllen Police Department and Texas Department of Criminal Justice conducted the investigation with the assistance of the FBI and the Edinburg Police Department as part of the Rio Grande Valley Safe Streets Task Force. Assistant U.S. Attorneys Anthony J. Evans and James Sturgis prosecuted the case.

BEAUMONT, Texas – Two Houston men have been sentenced to prison for federal firearms violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.

Robert Lewis Johnson, Jr., 31, pleaded guilty to brandishing a firearm during a crime of violence on May 17, 2022 and was sentenced today to 120 months in federal prison by U.S. District Judge Marcia Crone. Bryant Demetri West, 24, pleaded guilty to the same offense on May 9, 2022, and was sentenced earlier this week to 120 months in federal prison by Judge Crone. 

According to court documents, the morning of December 15, 2018, Johnson and West drove a stolen truck to Tacos La Bamba in Beaumont and entered the restaurant brandishing handguns. The two masked men then forced store employees to the floor and took $13,862.97 in cash belonging to the restaurant before returning to Houston. During the robbery, West discharged his firearm in the vicinity of two restaurant employees.

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 Beaumont Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorney John B. Ross.

###

TYLER, Texas - A Mount Vernon man has been indicted on federal child exploitation charges in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.

Zachary Arzola, also known as Zachary Castenada, 26, was named in an indictment returned by a federal grand jury on April 19, 2023 charging him with coercion and enticement of a minor; traveling with intent to engage in illicit sexual conduct; and transportation of a minor with intent to engage in criminal sexual activity.

According to the indictment, from December 2022 until January 9, 2023, Arzola allegedly used the internet and social media and messaging applications to coerce a minor to engage in illegal sexual conduct.  In December 2022, Arzola is alleged to have traveled from Texas to Ohio for the purpose of engaging in illicit sexual conduct with a minor and in January 2023, transported a minor across state lines to engage in criminal sexual activity.

If convicted, Arzola faces up to life in federal prison.

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.

An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. 

This case is being investigated by the Texas Department of Public Safety – CID, Mount Vernon Police Department and the Clermont County Sheriff’s Office.  This case is being prosecuted by Assistant U.S. Attorney Jonathan R. Hornok.

###

TYLER, Texas - A Bakersfield, CA man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.

Pablo Antonio Sandoval, 24, pleaded guilty on August 8, 2022, to possession with intent to distribute methamphetamine and was sentenced to 170 months in federal prison by U.S. District Judge Jeremy D. Kernodle on April 18, 2023.

According to information presented in court, in October 2021, Sandoval supplied more than 500 grams of methamphetamine to drug dealers in Cherokee County, Texas, which he sourced from suppliers in California.  Sandoval was indicted by a federal grand jury in the Eastern District of Texas in April 2022.

This case was investigated by the Homeland Security Investigations, Cherokee County Sheriff’s Office, Drug Enforcement Administration, and Jacksonville Police Department.  This case was prosecuted by Assistant U.S. Attorney Lucas Machicek.

# # #

SHERMAN, Texas – A Denton man has been sentenced to federal prison for violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.

Anthony Joseph Hammer, 34, pleaded guilty on May 3, 2022, to interstate communication of a threat and was sentenced to 24 months in federal prison today by U.S. District Judge Richard A. Schell.    

According to information presented in court, on July 28, 2021, Hammer sent a threatening electronic message to the Anti-Defamation League (ADL), a Jewish civil rights organization based in New York, via the ADL’s website’s contact page.  In his message, Hammer stated the following: “Come and find me.  Come after me.  Come hunt me down.  This is me.  This is really me.  All of my info.  I will kill all of you Zionist pigs.  4th reich soon.”

“Threatening to harm others by using phones, computers or mail is a federal crime and taken very seriously,” said U.S. Attorney Brit Featherston.  “Hammer believed he could promote his malicious agenda by making threats to kill and to disrupt business activity.  That’s why he is going to jail and being punished.  Others who do the same will have the same fate.”

“The FBI is tasked with upholding the Constitution to include the right to Free Speech as outlined in the First Amendment. In this case, the direct threats made by the defendant, fell outside of that protected right,” said FBI Dallas Special Agent in Charge Chad Yarborough. “The FBI and our law enforcement partners take all threats seriously and will hold accountable anyone who seeks to intimidate and cause fear simply because they disagree with the views of their fellow citizens.”

An investigation by federal agents revealed that Hammer was already under investigation for threatening calls he made to Pennsylvania Governor Tom Wolf’s office.  Hammer made seven calls to Governor Wolf's office requesting to speak to the Governor.  When staff members refused to put him through to the Governor, Hammer repeatedly threatened to kill Wolf and his staff members.  This conduct was taken into consideration in calculating Hammer’s appropriate sentence in the Eastern District of Texas.

This case was investigated by the FBI and the Pennsylvania Capitol Police and prosecuted by Assistant U.S. Attorney Ryan Locker in the Eastern District of Texas in coordination with Assistant U.S. Attorney Carl Marchioli in the Middle District of Pennsylvania.  

###

BEAUMONT, Texas– A Lufkin man has been sentenced to federal prison for a drug trafficking and firearms violation in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.

Tyson Spencer, 48, pleaded guilty on Feb. 14, 2022, to possession with intent to distribute synthetic marijuana and being a felon in possession of a firearm and was sentenced to 90 months in federal prison today by U.S. District Judge Michael J. Truncale.

According to information presented in court, Lufkin police officers came in contact with Spencer while responding to a report of a residential theft.  Spencer matched the description of the suspect and was searched for stolen items.  During the search, officers discovered a firearm in Spencer’s backpack.  Spencer admitted to being a convicted felon, having been previously convicted of murder, which would prohibit him from owning or possessing firearms or ammunition.  Spencer was also in possession of a gallon-sized baggie containing synthetic marijuana.  Spencer was indicted by a federal grand jury on August 19, 2020.   

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 Bureau of Alcohol, Tobacco, Firearms and Explosives and the Lufkin Police Department and prosecuted by Assistant U.S. Attorney Donald S. Carter.

# # #

SHERMAN, Texas– A Melissa woman has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.

Nnenna Mary Jones, 39, pleaded guilty to wire fraud today before U.S. Magistrate Judge Christine A. Nowak.

According to information presented in court, the Texas Muslim Women’s Foundation, a 501(c)(3) public charity in Plano, Texas, serves Muslim women and their families who are survivors of domestic and family violence.  The Foundation offers its clients in-house legal assistance with the immigration process, among other services.  The Foundation advertises that it offers its services—including immigration legal assistance—free of charge.  Jones worked for the Foundation as a paralegal and was a Department of Justice Accredited Representative, which allowed her to represent clients in court in immigration matters with the Department of Homeland Security.  She was also a licensed attorney in Nigeria before moving to the United States.

The Foundation’s legal team routinely requests waivers of certain fees its clients incur during the immigration process, and most of its clients qualify for these waivers.  If the Foundation’s clients do not qualify for a waiver of the immigration fees, then at times the Foundation pays the fee.  However, Jones represented to clients of the Foundation that they were required to pay certain fees to the government in relation to their immigration proceedings.  In reality, the clients’ fees had either been waived by the government or paid by the Foundation.  Clients wrote checks and obtained money orders in the amounts of the fees Jones told them they owed to the government.  However, Jones instructed the clients to leave the “pay to” line on the checks and money orders blank.  Jones photocopied the clients’ checks and money orders, wrote “U.S. Department of Homeland Security” on the “pay to” line of the photocopied checks and money orders, and placed the photocopies in the clients’ files.  Jones then wrote her own name in the “pay to” line of the clients’ original checks and money orders and cashed them or deposit them into her own accounts.

Jones stole approximately $17,000 from at least nine of the Foundation’s clients.

Jones was indicted by a federal grand jury on Oct. 19, 2022.  She 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 Sean J. Taylor. 

# # #

TYLER, Texas - A Canton man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.

Ashton Norris, 30, pleaded guilty on August 22, 2022, to possession with intent to distribute methamphetamine and was sentenced to 97 months in federal prison today by U.S. District Judge J. Campbell Barker.

According to information presented in court, on Oct. 4, 2021, Norris was stopped on IH-20 in Van Zandt County for a defective license plate lamp.  During the stop, it was discovered that Norris had an active warrant for his arrest out of Wood County and Norris was placed under arrest.  An inventory of the vehicle after Norris was arrested revealed a backpack with approximately 103 grams of methamphetamine.  Norris was indicted by a federal grand jury on Dec. 5, 2021 and charged with federal drug trafficking violations. 

This case was investigated by the Canton Police Department, the Wood County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Drug Enforcement Administration.  This case was prosecuted by Assistant U.S. Attorney Jim Noble.

# # #

BEAUMONT, Texas– An Orange, Texas man has been sentenced to federal prison for a firearms violation in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.

Michael Lawrence Geral, Jr., 35, pleaded guilty on Oct. 4, 2022, to being a felon in possession of a firearm and was sentenced to 50 months in federal prison today by U.S. District Judge Marcia A. Crone.  

According to information presented in court, on Dec. 13, 2021, Geral was stopped for a traffic violation by officers with the Orange Police Department.  As officers spoke with Geral, they smelled the odor of burnt marijuana coming from the vehicle.  Officers searched the vehicle and found a firearm which Geral admitted was his.  Geral is a previously convicted felon and prohibited from possessing firearms. 

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 Bureau of Alcohol, Tobacco, Firearms and Explosives and the Orange Police Department and prosecuted by Assistant U.S. Attorney Russell James.

# # #

SHERMAN, Texas – Ophthalmology provider group, Arlington Ophthalmology Association, P.L.L.C. d/b/a Kleiman Evangelista Eye Centers (“K&E”), with offices located in Arlington, Dallas, Plano, Southlake, Mount Pleasant, and Gun Barrel City, Texas, has agreed to pay $2,902,505 to resolve False Claims Act allegations that it offered and paid kickbacks to optometrists to induce referrals of patients who were candidates for cataract surgery in in violation of the False Claims Act and Anti-Kickback Statute, announced Eastern District of Texas U.S. Attorney Brit Featherston.

“The Eastern District of Texas is committed to looking beyond labels and examining providers' actual conduct. Although co-management can be a legitimate practice, merely applying that label does not give providers carte blanche to remunerate referring providers in order to secure business,” said U.S. Attorney Brit Featherston. “We are committed to investigating any financial incentives offered to secure referrals, which cloud providers' medical judgement, and violate the Anti-Kickback Statute.”

“Paying kickbacks to providers incentivizes doctors to treat patients based on illegitimate financial gain, rather than the patient's needs and best interests,” said Korby Harshaw, acting Special Agent in Charge with the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG will not tolerate kickback arrangements, which undermine medical responsibility, put patients at risk, and can waste taxpayer dollars.”

The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid, and other federally funded programs. The Anti-Kickback Statute is intended to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients.

K&E routinely engaged in the practice of co-management of cataract surgery patients with optometrists who referred patients to K&E. Patients who undergo cataract surgery require post-operative monitoring and care. When post-operative care is rendered by another provider other than the surgeon, such as an optometrist outside the surgeon’s practice, this practice is generally referred to as co-management.

The settlement announced today resolves certain allegations that K&E’s remunerative arrangement with referring optometrists who co-managed patient care with K&E violated the Anti-Kickback Statute. The United States contends K&E provided remuneration to referring optometrists  when it paid referring optometrists money untethered to actual non-Medicare and non-Medicaid covered services for referring cataract patients who received premium intraocular lenses (IOLs) or laser-assisted cataract surgery, guaranteed the automatic return of patients referred, provided optometrists free continuing education courses, rewarded top referring optometrists with expensive dinners, and invited referring optometrists, their family, and staff to Texas Rangers stadium games at the company suite. The fees paid to referring optometrists for patients who received premium lenses or laser-assisted cataract surgery were in addition to the reimbursement already received by the optometrists from Medicare and Medicaid for performing post-operative cataract care and were not tied to or commensurate with actual post-operative services specifically attributed to premium IOLs or laser-assisted cataract surgery rendered, and thus constituted unlawful remuneration under the Anti-Kickback Statute.

As part of the settlement, K&E has agreed to cooperate with the Department of Justice’s investigations of and litigation against other parties involved in the alleged violations of law.

This investigation originated from a civil lawsuit filed by a Relator, or whistleblower, under the qui tam provisions of the False Claims Act, which allows private parties to bring suit on behalf of the government for false claims and to share in any recovery. The whistleblower in this matter will receive a percentage of this civil settlement.

The government’s pursuit of these matters illustrates the government’s emphasis on combating healthcare fraud.  One of the most powerful tools in this effort is the False Claims Act.  Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 1-800-HHS-TIPS (800-447-8477).

This civil settlement was the result of a coordinated effort between the U.S. Attorney’s Office, Eastern District of Texas, and the United States Department of Health and Human Services, Office of Inspector General. This matter was handled by Assistant U.S. Attorneys James Gillingham, Adrian Garcia, and Betty Young, Investigator Ann Williams, and Paralegal Christina Cate.

The claims resolved by this settlement is allegations only, and there has been no determination of liability.

####

BEAUMONT, Texas – A Beaumont man has been sentenced to federal prison for violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.

Jamar Byars, also known as Jamar Limbrick, 21, pleaded guilty on April 25, 2022, to Hobbs Act robbery and brandishing a firearm during a crime of violence and was sentenced to 117 months in federal prison today by U.S. District Judge Marcia A. Crone.

According to court documents, on Oct. 14, 2021, law enforcement officers responded to a call regarding an armed robbery at the Food Basket located on North 4th Street in Beaumont.  An assailant, later identified as Byars, selected an item and brought it to the register.  Byars then pulled out a firearm and pointed it at the clerk and demanded money.  The clerk hesitated and Byars responded by striking the clerk in the head with the pistol twice.  Byars then removed the money from the register and fled the scene.  Byars was indicted by a federal grand jury on Jan. 5, 2022. 

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 was investigated by the Beaumont Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorney Russell James.

###

TYLER, Texas – A Virginia woman has been sentenced to federal prison for her role in a cryptocurrency money laundering conspiracy in the Eastern District of Texas, announced U.S. Attorney Brit Featherston.

Lois Boyd, 76, of Amelia Court House, Virginia, pleaded guilty on June 14, 2022, to interstate travel in aid of racketeering enterprises and was sentenced to 37 months in federal prison today by U.S. District Judge Jeremy D. Kernodle.

According to information presented in court, Boyd was involved in a transnational money laundering network involved in the laundering of criminal proceeds derived from various fraud schemes.  Boyd and her co-conspirators exchanged criminal proceeds for cryptocurrency and directed the cryptocurrency to wallets under the control of their foreign co-conspirators.  In August 2020, Boyd and her co-conspirators traveled to Longview, Texas, where they attempted to exchange approximately $450,000 in criminal proceeds for Bitcoin.

On June 16, 2021, Boyd was named in an indictment returned by a federal grand jury, charging her with interstate travel in aid of racketeering enterprises and money laundering.

On April 6, 2022, Boyd’s co-conspirator, Deependra Bhusal, 47, of Irving, Texas, was sentenced to 46 months in federal prison for his role in the cryptocurrency money laundering conspiracy.

This effort is part of Operation Crypto Runner, 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.

The investigations arising from the operation are being conducted by the U.S. Secret Service and the U.S. Postal Inspection Service and are being led and prosecuted by Assistant U.S. Attorneys Nathaniel C. Kummerfeld and L. Frank Coan, Jr., with assistance from the Criminal Division’s Fraud Section and Computer Crime and Intellectual Property Section and the Department’s Office of International Affairs.

###

 

SHERMAN, Texas – A former youth pastor has been sentenced to federal prison for child pornography violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.        

Chad Michael Rider, 49, of Anna, Texas, was found guilty by a jury on July 22, 2022, of three counts of sexual exploitation of children, also referred to as the production of child pornography.  Today, Rider was sentenced to a total combined sentence of 720 months in federal prison by U.S. District Judge Amos L. Mazzant.

According to the court documents and testimony at trial, in August 2022, Homeland Security Investigations agents were investigating David Pettigrew, of Denison, for child pornography offenses.  Agents seized a computer hard drive from Pettigrew’s office at the Denison Church of the Nazarene.  Forensic review of the device revealed videos of Pettigrew and Rider setting up to film children while bathing at the church.  Additional videos were located in which Rider filmed two other children in residential settings.

“Justice has been served on Chad Michael Rider for his role in the production of child pornography,” said U.S. Attorney Brit Featherston.  “He used his trusted roles as a church leader, care giver to at-risk teens, and as a trusted member of his community to plant secret recording devices in bathrooms and other places where children would be disrobed.  This shocking breach of trust was committed by an individual who had falsely sewn a firm belief of good character of himself in so many parents in his community.  This case stands as a stark reminder of our common duty as citizens to watch out for the most vulnerable among us.  I appreciate the members of law enforcement, community members, and especially the victims who had the courage to stand up and stop Rider before he could victimize others.”

“This defendant and his cohort routinely preyed on the innocence of several children that looked to him for guidance as members of his church. He had no concern for the life-altering harm his devious actions would cause those he victimized,” said Lester R. Hayes Jr., Special Agent in Charge HSI Dallas. “Unfortunately, no amount of prison time can restore their innocence but rest assured, this community is safer with this sexual deviant behind bars.”    

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 with assistance from Anna Police Department and prosecuted by Assistant U.S. Attorneys Marisa J. Miller and Jay Combs.

###

BEAUMONT, Texas - A Beaumont woman has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.

Pamela Jo Rosas, 64, pleaded guilty to theft of mail by a postal employee today before U.S. District Judge Marcia A. Crone.

According to information presented in court, in April 2022, postal inspectors became aware that   multiple valuable coins had been stolen after they had been mailed through the U.S. Postal Service.  An investigation revealed that Rosas, a postal employee, had stolen the coins while sorting mail at a central mail processing facility in Beaumont.  Rosas was arrested and admitted to stealing various items throughout her employment, including large amounts of valuable coins.    

Rosas was indicted by a federal grand jury in November 2022 and faces up to five 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 is being investigated by the U.S. Postal Inspection Service and prosecuted by Assistant U.S. Attorney Russell James.

###

BEAUMONT, Texas - A Beaumont man has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.

Decorius Mire, 23, pleaded guilty to animal crushing today before 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 Sep. 28, 2022 and faces up to seven 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 is being investigated by the Beaumont Police Department and the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Joseph R. Batte.

###

PLANO, Texas – A Sulphur Springs company has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.

4TMFG, LLC, pleaded guilty to a felony, aiding and abetting document fraud, before U.S. Magistrate Judge Kimberly C. Priest Johnson on Feb. 15, 2023.

According to information presented in court, 4T MFG is a company with common ownership and leadership related to trailer manufacturer Load Trail.  In 2018, a search warrant executed at Load Trail revealed multiple employees with immigration documentation that was either misleading or fraudulent.  During the search, federal agents verified that 4T MFG employed individuals who lacked legal authorization to work in the United States.  At least 18 individuals had resident alien cards that had been forged, counterfeited, altered, falsely made, procured by means of false claim or statement, and otherwise unlawfully obtained in violation of federal law.

4TMFG, LLC, along with Load Trail, has agreed to pay forfeiture of $5 million.  Two prior CEOs of 4T MFG also are charged with misdemeanors for violating federal law regarding the unlawful employment of aliens.  Those individuals, Cornelio Thiessen, 52, of Honey Grove, and Kevin Hiebert, 39, of Honey Grove, face up to six months in federal prison at sentencing.

This case is being investigated by the Department of Homeland Security and prosecuted by Assistant U.S. Attorney Kevin McClendon.

###

BEAUMONT, Texas - A Beaumont man has been sentenced to federal prison for a firearms violation in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.

Jared Javon Bias, 28, pleaded guilty on March 2, 2022, to possession of a firearm by a prohibited person and was sentenced to 96 months in federal prison by U.S. District Judge Marcia A. Crone on Feb. 14, 2023.

According to information presented in court, on Jan. 21, 2021, Bias was arrested pursuant to a parole violation.  During the arrest he was observed trying to hide an object.  Further investigation revealed a backpack in the back seat which contained a loaded semiautomatic firearm.  Bias was indicted by a federal grand jury on August 4, 2021.

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 Bureau of Alcohol, Tobacco, Firearms and Explosives and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney Rachel Grove.

# # #

ABEAUMONT, Texas - A Beaumont man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.

Patrick Dwayne Gipson, 38, pleaded guilty on March 2, 2022, to conspiracy to possess with intent to distribute 50 grams or more of a mixture or substance containing methamphetamine and was sentenced to 119 months in federal prison by U.S. District Judge Marcia A. Crone on Feb. 14, 2023.

According to information presented in court, on Feb. 6, 2020, local law enforcement officers executed a search warrant at a Beaumont residence controlled by Gipson and others. Through the investigation, law enforcement seized thousands of pills, purported to be ecstasy, that contained methamphetamine.

Gipson is the last defendant of the conspiracy to be sentenced.  Earlier this month, Travion Dewayne Parkerson was sentenced to 97 months in federal prison; Wendall James Kirtman was sentenced to 84 months in federal prison; and Kobe Jashawn Grimes was sentenced to 70 months in federal prison. 

This case was investigated by the Beaumont Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jefferson County Regional Crime Laboratory.  This case was prosecuted by Assistant U.S. Attorney Jonathan C. Lee.

# # #

TYLER, Texas – A Grapeland, Texas man, and his girlfriend, have been sentenced to federal prison for violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today. 

Reynaldo Campos, Jr., 45, pleaded guilty on August 12, 2022, to murder for hire and was sentenced to 120 months in federal prison today by U.S. District Judge Jeremy D. Kernodle. 

According to the indictment, on Feb. 9, 2022, Campos contacted an individual who he believed was a hitman, but who was in fact an undercover federal agent, and solicited the “hitman” to murder a former associate of Campos, claiming the intended victim had either stolen drugs from him or owed him money.  Campos discussed the intended murder with the agent on multiple occasions over the next several weeks.  On April 8, 2022, Campos and his girlfriend, Robin Pittman, traveled together from Houston County to Tyler to discuss the murder, to provide the “hit man” with a handgun to be used for the murder, and to provide the “hit man” with information about the intended victim.  On April 13, 2022, Campos and Pittman again traveled together from Houston County to Tyler to discuss the murder and to provide the “hit man” with approximately one gallon of Phenylacetone/P2P, which is a chemical used in the manufacture of methamphetamine, and a shotgun as partial payment for the murder of the intended victim. 

Campos and Pittman were indicted by a federal grand jury on April 21, 2022.  Pittman, also known as Robin Hill, 42, of Grapeland, pleaded guilty on August 9, 2022, to possession of a firearm in furtherance of a drug trafficking crime and was sentenced to 60 months in federal prison today by Judge Kernodle.

This case was investigated by the U.S. Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney Jim Noble.

###

PLANO, Texas – Two Dallas brothers have been found guilty of federal violations related to a fraud scheme in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.

On Feb. 13, 2023, Thomas Hughes Page, 46 and Jon Phillip Page, Jr., 54, were found guilty by a jury of conspiracy to commit bank fraud and conspiracy to commit money laundering following a six-day trial before U.S. District Judge Sean D. Jordan.

According to information presented at trial, between approximately 2010 and 2017, the defendants used their company, Page Capital Group, to obtain multiple loans from PlainsCapital Bank (PCB), representing that the loans would be secured by a brokerage account worth at least $2 million.  However, neither Thomas Page nor Phillip Page had access to such funds, as the brokerage account was never actually funded.  Thomas Page and Phillip Page directed and paid a third individual, Clayton Wertz, to create and submit to PCB fraudulent brokerage statements for the brokerage account reflecting significant value.  Once Thomas Page and Phillip Page received the money from PCB, they used the funds on various business and personal expenses.  In addition, Thomas Page and Phillip Page took affirmative steps, such as providing occasional payments on the loan, to conceal and disguise their activity. As a result of the fraudulent conduct, the bank loaned Page Capital approximately $3.6 million and eventually lost approximately $3.25 million over the course of the scheme. 

“These two brothers disguised and lied to financial institutions in order steal large amounts of money for their personal use, depriving others of the legitimate business use of the money,” said U.S. Attorney Featherston.  “Keeping all the balls (lies) in the air only lasts until the FBI comes knocking, then the balls come crashing down.  The FBI and prosecutors in this case did an outstanding job investigating and prosecuting the case.”

“The defendants knowingly used deceptive methods to obtain a loan from a financial institution that was used for their personal benefit, in order to keep their illicit scheme afloat,” said FBI Dallas Acting Special Agent in Charge James J. Dwyer. “Financial Institution Fraud not only hurts the lender, but also innocent borrowers who are seeking genuine loans for their businesses. The FBI is committed to pursuing anyone that attempts to defraud financial institutions, investors, or the public.”

The defendants face up to 30 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 investigated by the Federal Bureau of Investigation – Frisco Resident Agency and prosecuted by Assistant U.S. Attorneys in the Plano office.

###

TEXARKANA, Texas – The final defendant has been sentenced in a federal bribery, theft and fraud scheme at the Red River Army Depot (RRAD) in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.

Jimmy Scarbrough, 71, of Hooks, pleaded guilty on August 22, 2022, to conspiring with others to defraud the United States, commit theft of government property, and commit bribery.  He was sentenced to 48 months in federal prison today by U.S. District Judge Robert W. Schroeder, III.   Scarbrough was also ordered to forfeit his 1951 Ford F-1 pickup truck and $229,000 cash.    

In September of 2022, Jeffrey Harrison, a former RRAD vendor, was sentenced to 30 months in federal prison and ordered to forfeit $300,000; Justin Bishop, a former RRAD vendor was sentenced to 12 months and 1 day in federal prison and ordered to forfeit $55,000; Devin McEwin, a former RRAD official was sentenced to a five-year term of federal probation, including eight months of home confinement and ordered to forfeit $21,000; and Louis Singleton, a former RRAD official was sentenced to five years of federal probation, including eight months of home confinement, and was ordered to forfeit $18,000.

“Scarbrough sold his position of public trust for personal gain, all at the expense of the hard-working men and women at the RRAD who support our armed forces around the globe,” said U.S. Attorney Brit Featherston. “We will continue vigorously uprooting corruption and fraud at the RRAD and the vendors that support its mission.”

“Today's sentencing is a fitting end for those who conspire to defraud the United States Army,” said Special Agent in Charge L. Scott Moreland of the Department of the Army Criminal Investigation Division’s Major Procurement Fraud Field Office.  “Army CID is proud to work with our federal law enforcement partners to protect the coffers of the U.S. government from those who break the law and threaten the readiness of our Service.”

“Today’s sentence concludes the tireless work and dedication of multiple agencies to hold a group of people accountable for attempting to defraud and profit off the United States government,” said FBI Dallas Acting Special Agent in Charge, James J. Dwyer. “The public can rest assured that we remain committed to aggressively pursuing anyone that uses government programs for their own personal gain.”

According to information presented in court, Scarbrough was the Equipment Mechanic Supervisor at the RRAD in Texarkana, Texas, a position he held from November 2001 until May 2019. Scarbrough directed more than $7 million in purchases from RRAD to Harrison and Bishop through the government purchase card (GPC) program.  In order to manipulate the GPC program, which is designed to ensure a competitive bidding process, Scarbrough told the vendors what to bid, including the item, the quantity, and the price.  By collecting fake bids from multiple vendors, Scarbrough was able to direct RRAD purchases to his select vendors, in this case Harrison and Bishop, while maintaining the appearance of a competitive bidding process.  Scarbrough also defrauded the United States by falsely certifying that he had received the purchased items, therefore causing the RRAD to pay his select vendors.  However, the reality was that Scarborough instructed the vendors not to deliver certain RRAD-purchased items.

Scarbrough demanded hundreds of thousands of dollars in bribes from his selected vendors. Scarbrough accepted bribes in various forms, including receiving at least $116,000.00 in U.S. Postal Service money orders from Harrison.  Scarbrough also had Harrison and Bishop purchase at least $135,000.00 in car parts or services for his hot rod collection, which included a red and black 1936 Ford Tudor, an electric green 1932 Ford Coupe, a cherry red 1951 Ford F-1 truck, and more. Scarbrough received more than $27,000.00 worth of firearms from Bishop, including rare Colt handguns and Wurfflein dueling pistols.  Finally, Scarbrough directed at least $32,000.00 in donations to the Hooks Volunteer Fire Department while he was the Capitan of Operations.  In total, Scarbrough received more than $300,000.00 in bribe payments from Harrison and Bishop.

Scarbrough is not the only official at RRAD who accepted bribes.  Devin McEwin accepted more than $21,000.00 in bribes from Harrison, including hunting trips, donations directed to the Annona Volunteer Fire Department, and the refurbishment of his 1964 Ford truck.  Additionally, Louis Singleton accepted more than $18,000 in bribes from Harrison and others, including tickets to the Hall of Fame section of AT&T Stadium for the Dallas Cowboys football game against the New England Patriots.  Singleton was the supervisor of the GPC program at the RRAD and was responsible for approving purchases requested by Scarbrough.

This was investigated by the U.S. Army CID, Major Procurement Fraud Field Office; the Federal Bureau of Investigation-Dallas Division, Tyler Resident Agency, and the U.S. Postal Inspection Service.  This case was prosecuted by Assistant U.S. Attorneys Jonathan R. Hornok, Stephan Oestreicher, Andrew Stover, and Robert Wells.

###

BEAUMONT, Texas - A Buna man has been sentenced to 22 years in federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.

Larry Wayne Free, 40, pleaded guilty on June 30, 2022, to possession with intent to distribute methamphetamine and was sentenced to 264 months in federal prison by U.S. District Judge Marcia A. Crone on Feb. 2, 2023.  

According to information presented in court, in January 2021, law enforcement officials received information that Free was distributing methamphetamine from a residence in Nome, Texas.  Free was located on Highway 90 and a traffic stop was initiated on the vehicle.  A narcotics K9 unit alerted on the vehicle and a search revealed 1,948 grams of methamphetamine in the car.  Free was indicted by a federal grand jury on April 6, 2022. 

This case was investigated by the Drug Enforcement Administration, the Jefferson County Sheriff’s Office, the Beaumont Police Department and the Hardin County Sheriff’s Office.  This case was prosecuted by Assistant U.S. Attorney Rachel Grove.

# # #

SHERMAN, Texas – Nearly two dozen individuals have been named in a federal indictment charging them with violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today

The indictment, returned by a federal grand jury on Jan. 17, 2023, charges the defendants with a money laundering conspiracy.  The following 23 defendants appeared before a federal magistrate judge this week:

KENDRICK LAVELL COLLINS, 42, of Aubrey;

LETISHA ANN STOVER, 41, of Richardson;

SPENCER LEONARD LEIGH, 35, of Everman;

DANUIELLE FOWLER EDNEY, 51, of Plano;

DIAMOND PLASHETTE EDWARDS, 24, of Grand Prairie;

TABITHA LASHAWN DEBERRY, 34, of Dallas;

AMOS WILSON, 56, of Dallas;

ANDREW DEMARCUS PENNY, 45, of Dallas;

DEMETRICS DEVON BLACK, 31, of Dallas;

JARRICK OTISHEY BUCKHANAN, 43, of Dallas;

JERICA JAREESE MATTHEWS, 31, of Anna;

JOHN GANTT, 35, of Dallas;

LEMAR MASHAWN COHEN, a/k/a LEMAR MARSHAWN COHEN, 36, of Dallas;

CHIBUIKE SAMUEL IWUH, 30, of The Colony;

CYNTHIA MECHELLE WILSON, 55, of Dallas;

DONTRELL LAMON AMIE, 42, of North Richland Hills;

ERIC JASON VAUGHAN, 49, of Arlington;

JEREMIAH LEE GANTT, 28, of Dallas;

JOSHUA MATTHEW BAHAM, 27, of Anna;

LESLEY ODELL BROWN, 32, of Carrollton;

MICHAEL ANDRE STUDAWAY, 26, of Dallas;

TAMARA DAWN THOMAS, 41, of Dallas; and

TIMOTHY DWAYNE HOSTON, 44, of Carrollton.

According to the indictment, the defendants are alleged to have conspired to launder the proceeds of wire fraud in order to conceal the nature, location, source and ownership of the money gained by fraud.  The indictment further alleges that the conspirators would open bank accounts, use assumed business names, and transfer, withdraw, and move the money and use it for their own purposes.  The source of the laundered funds is alleged to include fraud based on business email compromise, romance scams, unemployment insurance fraud, and Payroll Protection Program (PPP) fraud, and is alleged to be more than $3.5 million.    

If convicted, the defendants each face up to 20 years in federal prison.

This case is being investigated by the Federal Bureau of Investigation’s Frisco Resident Agency and prosecuted by Assistant U.S. Attorneys in the Eastern District of Texas.

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.

 

###

 

BEAUMONT, Texas – A Brooklyn, NY man has been indicted for a federal firearms violation in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.

Ahmed Abdalla Allam, 26, was named in an indictment returned by a federal grand jury on Feb. 1, 2023, charging him with possession of a firearm in a school zone.  Allam appeared in federal court before U.S. Magistrate Judge Zack Hawthorn today and was ordered to be held pending a detention hearing.

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 or ammunition within 1,000 feet of a school zone.   

“The community of St. Anthony’s, including parents, teachers, and administrator, are to be commended for remaining vigilant and reporting their suspicions,” said U.S. Attorney Brit Featherston.  “If you see something suspicious – say something.  You may save a life.”

If convicted, Allam faces up to 5 years in federal prison.

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.

An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

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.

###

SHERMAN, Texas – A Dallas man has been convicted of federal drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.

Eric R. Roberts, 51, was convicted of multiple federal violations, including continuing criminal enterprise; conspiracy to possess with intent to distribute marijuana; conspiracy to commit money laundering; and possession of a firearm in furtherance of a drug trafficking crime.  Roberts was found guilty by a jury following a 10-day trial before U.S. District Judge Amos Mazzant.

                                                                                              

The jury also returned a verdict for criminal forfeiture of a large amount of property seized from Roberts, including 37 firearms, 8 vehicles, and $436,295 in US currency. 

Four additional co-defendants - Ronald Lewis McGuire, Lowell Eugene Sargent, Philip S. Lala, and Christopher Shaun Ragle - were found guilty by the same jury of conspiracy to possess with intent to distribute marijuana and conspiracy to commit money laundering.  The jury found that all five defendants were individually responsible for 1000 kilograms or more of a mixture or substance containing a detectable amount of marijuana. 

According to information presented in court, Roberts was a leader of a large-scale national drug trafficking organization spanning several years, with McGuire, Sargent, Lala, and Ragle acting as drivers. 

Roberts was indicted by a federal grand jury on April 15, 2021.  He 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 prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. 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 investigated by the Drug Enforcement Administration and the Mesquite Police Department and prosecuted by Assistant U.S. Attorneys Brent L. Andrus and Ernest Gonzalez.

###

BEAUMONT, Texas - Two women have been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.

Tina Gilder, 40, of Houston, and Gina Moreno, 29, of San Benito, Texas, were indicted by a federal grand jury on Jan. 8, 2020, and charged with conspiracy to distribute cocaine.  On Jan. 17, 2023, U.S. District Judge Crone sentenced Gilder to 121 months in federal prison and Moreno to 87 months in federal prison.  

According to information presented in court, Gilder and Moreno were both part of a Houston-based conspiracy to traffic kilograms of cocaine through East Texas to the East Coast for distribution.  On August 26, 2019, Gilder was stopped and found in possession of four kilograms of cocaine concealed in a hidden compartment in a Jeep.  Moreno was stopped on Sep. 21, 2019 and found in possession of 22 kilograms of cocaine.  Gilder was convicted at trial on Feb. 24, 2022 and Moreno pleaded guilty on Feb. 7, 2022.

These cases were investigated by the Drug Enforcement Administration and the Port Arthur Police Department and prosecuted by Assistant U.S. Attorney Michael Anderson.

# # #

BEAUMONT, Texas - A Center woman has been sentenced to 10 years in federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.

Ingrid Yaresi Balderas De Leon, 28, pleaded guilty on July 12, 2022, to conspiracy to possess with intent to distribute methamphetamine and was sentenced to 120 months in federal prison today by U.S. District Judge Marcia A. Crone.  

According to information presented in court, De Leon was part of a drug trafficking organization distributing large quantities of methamphetamine in East Texas.  De Leon participated in several sales of large quantities of methamphetamine, often acting as a Spanish-language interpreter during the transactions.  De Leon and her co-conspirators would hide the methamphetamine in the plastic trim of vehicles and deliver them to a residence in Center.  De Leon was indicted by a federal grand jury on March 2, 2022.

This case was investigated by the FBI, Drug Enforcement Administration, and Bureau of Alcohol, Tobacco, Firearms, and Explosives and prosecuted by Assistant U.S. Attorney Donald S. Carter.

# # #

BEAUMONT, Texas - A Beaumont man has been sentenced to federal prison for a firearms violation in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.

Edward Lee Simien, 43, pleaded guilty on Sep. 9, 2022, to possession of a firearm by a prohibited person and was sentenced to 41 months in federal prison today by U.S. District Judge Marcia A. Crone. 

According to information presented in court, on April 24, 2022, local law enforcement officers were serving an arrest warrant on Simien, when they observed Simien enter a vehicle near the rear of his business.  Officers attempted to conduct a traffic stop on Simien, however he fled from officers at a high rate of speed.  Eventually Simien ran into the fence of a local business, disabling his vehicle.  Simien then exited the vehicle with what officers observed was a firearm with an extended magazine in his hand.  Simien fled on foot and threw the firearm nearby.  Officers eventually took Simien into custody and recovered the firearm he discarded.  Further investigation revealed Simien was a previously convicted felon and prohibited from owning or possessing firearms or ammunition.  Simien was indicted by a federal grand jury on May 11, 2022.

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 Bureau of Alcohol, Tobacco, Firearms and Explosives and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney Russell James.

# # #

PLANO, Texas – A Plano has been charged with drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today. 

Eric William Mather, also known as “Truth”, 36, was named in a fourth superseding indictment returned by a federal grand jury on Nov. 9, 2022 in the Eastern District of Texas.  The indictment charges Mather with multiple federal violations including conspiracy to distribute fentanyl and conspiracy to launder money.  Mather made his initial appearance on Jan. 12, 2023, before U.S. Magistrate Judge Christine Nowak.  

According to the indictment, in September of 2022, the North Texas North Texas OCDETF Strike Force 2 (SF2), with the assistance of the DEA Dallas Tactical Diversion Squad (TDS), identified Mather as a fentanyl source of supply selling raw powdered fentanyl, and counterfeit pharmaceutical pills laced with fentanyl.  During his arrest, a search warrant was executed on his residence, resulting in the seizure of over 2 kilograms of raw powdered fentanyl, over a kilogram of fentanyl laced pills, a pill press, 30 firearms, and luxury vehicles. Mather is ultimately alleged to be responsible for multiple overdoses in the North Texas region.

If convicted, Mather faces up to life in federal prison.  A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. 

This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. 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 is being investigated by the U.S. Postal Inspection Service; Drug Enforcement Administration; U.S. Marshals Service; IRS-Criminal Investigations; Dallas Police Department; and the Collin County Sheriff's Office.  The case is being prosecuted by Assistant U.S. Attorney Heather Rattan.

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

 

###

BEAUMONT, Texas - A Lufkin man has been sentenced to federal prison for a firearms violation in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.

Fabian Fernando Hernandez, 20, pleaded guilty on July 19, 2022, to possession of a firearm in furtherance of a drug trafficking crime and was sentenced to 60 months in federal prison today by U.S. District Judge Marcia A. Crone. 

According to information presented in court, Hernandez was identified by law enforcement as a possible distributor of narcotics in the East Texas area. On Jan. 15, 2022, the Rusk Police Department conducted a traffic stop of a vehicle Hernandez was driving. During the traffic stop Hernandez fled on foot. Officers found nearly sixty grams of cocaine and almost 500 grams of marijuana in the vehicle abandoned by Hernandez, as well as pistol.  Hernandez was indicted by a federal grand jury on April 6, 2022.

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 Bureau of Alcohol, Tobacco, Firearms and Explosives, the Lufkin Police Department, and the Rusk Police Department and prosecuted by Assistant U.S. Attorney Donald S. Carter.

# # #

BEAUMONT, Texas - A Groves man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.

Paul Cole Bartee, 36, pleaded guilty on April 1, 2022, to possession with intent to distribute 50 grams or more of methamphetamine and was sentenced to 210 months in federal prison by U.S. District Judge Marcia A. Crone on Jan. 10, 2023.  

According to information presented in court, between February and September 2021, Bartee had frequent encounters with various law enforcement agencies while in possession of narcotics.  Bartee was found in possession of a total of 4.7 kilograms of methamphetamine, 15 grams of heroin, and 38 grams of fentanyl, as well as a firearm and $5,000 cash.  Bartee was indicted by a federal grand jury on Oct. 6, 2021.

This case was investigated by the Drug Enforcement Administration, Jefferson County Sheriff’s Office, Bridge City Police Department, Orange Police Department, Nederland Police Department, Port Arthur Police Department and Groves Police Department.  This case was prosecuted by Assistant U.S. Attorney Michael Anderson.

# # #

BEAUMONT, Texas – A Houston man has been sentenced for stealing mail in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today. 

Dontae Dewey McGee, 23, pleaded guilty on June 21, 2022, to theft of mail and was sentenced to 37 months in federal prison today by U.S. District Judge Marcia A. Crone.  McGee was also ordered to pay $55,372.30 in restitution to victims.

According to information presented in court, in January 2022, the U.S. Postal Service received complaints of stolen mail from various Post Office locations within Beaumont.  An investigation began which included a surveillance operation resulting in the identification of McGee and co-defendant Tyrin Terelle Robinson.  On Feb. 28, 2022, a vehicle pursuit between law enforcement and the defendants ensued during which mail was being thrown from the vehicle.  Spikes were deployed, the vehicle was stopped, and the defendants were arrested.  Robinson pleaded guilty on Sep. 7, 2022 and is awaiting sentencing.

This case was investigated by the U.S. Postal Inspection Service and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney Jonathan Lee.

###

BEAUMONT, Texas – A Dayton man has pleaded guilty to a federal firearms violation in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.

Clifford Scott Oclair, 57, pleaded guilty to possession of a firearm by a prohibited person before U.S. District Judge Marcia A. Crone on Jan. 9, 2023.

According to court documents, on July 11, 2022, Oclair was arrested by deputy U.S. Marshals and Liberty County law enforcement officers in Liberty County who were tracking him down in an attempt to arrest him for outstanding warrants. A few minutes prior to his arrest, Oclair was observed crossing through a fenced-off, open area into a pasture along Highway 321 near Dayton. Law enforcement officers set up a perimeter in the pasture and took positions in high grass on the ground, while observing the area. Within a few minutes, officers observed Oclair on the run moving toward them. When Oclair got close enough, the officers emerged from their positions with their weapons raised and arrested him, but not before he was observed discarding a firearm he had concealed in his pants. The loaded firearm was discovered in the grass nearby.

Oclair was indicted by a federal grand jury on Oct. 5, 2022.  He faces up to 15 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 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 Dayton Police Department, Liberty County Constable’s Office, Precincts 4 and 6, Port Arthur Police Department, U.S. Marshals Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorney Joseph R. Batte.

###

BEAUMONT, Texas - A Port Arthur man has pleaded guilty to federal firearms violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.

Javier Jesus Morales, 26, pleaded guilty to possession of an unregistered firearm today before U.S. District Judge Marcia A. Crone.

According to information presented in court, on Oct. 27, 2020, Morales sold a Glock .9mm pistol to a federal agent acting in an undercover capacity after the agent responded to a posting on the social media forum “Snapchat” advertising for the sale. The Glock pistol was outfitted with an attached aftermarket “auto-switch.” The auto-switch is a device used to convert a standard, legal handgun into a fully automatic machine gun, which if not registered in the National Firearms Registration and Transfer Record is illegal to possess.  The firearm was not registered to Morales.

Morales was indicted by a federal grand jury on Feb. 2, 2022.  He 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 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 Beaumont Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. This case is being prosecuted by Assistant U.S. Attorney Joseph R. Batte.

###

BEAUMONT, Texas – A Vidor man has pleaded guilty to a federal firearms violation in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.

Job Allen Smith, 49, pleaded guilty to possession of a firearm by a prohibited person today before U.S. District Judge Marcia A. Crone.

According to court documents, on Nov. 18, 2021, law enforcement officers conducted a search warrant at a residence in Vidor where they believed Smith would be in possession of narcotics.  During the search, officers discovered two firearms in the master bedroom closet.  Smith, a convicted felon, is prohibited by federal law from owning or possessing firearms or ammunition. 

Smith was indicted by a federal grand jury on Sep 7, 2022.  He 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 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 Orange County Sheriff’s Office, Orange County SWAT, FBI and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorney Russell James.

###

BEAUMONT, Texas – A Silsbee man has pleaded guilty to federal child pornography violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.

Michael Joseph Fontenot, 50, pleaded guilty to possession of child pornography today before U.S. District Judge Marcia A. Crone.

According to public information, Fontenot was found in possession of over 600 images of child pornography, including some images depicting a prepubescent minor engaging in sexual activity.

Fontenot faces up to 10 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 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 is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Rachel Grove.

###

A Texas woman pleaded guilty today in the Eastern District of Texas for a scheme to embezzle at least $29 million from her employer – a charitable foundation and several other companies run by a Dallas family.

According to court documents, Barbara Chalmers, 74, of Lewisville, admitted that starting in at least 2012, she abused her position as bookkeeper for the family’s companies and her signatory authority over the companies’ bank accounts to fraudulently write herself at least 175 checks, which she deposited into her personal accounts. In order to conceal her fraudulent conduct, she provided false paperwork to tax preparers misstating the year-end cash-on-hand numbers for the various accounts from which she was embezzling. She used more than $25 million of the stolen money to fund a construction business for which she was the president.

Chalmers pleaded guilty to one count of money laundering and faces a maximum penalty of 10 years in prison at sentencing. A sentencing date has not yet been scheduled. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Brit Featherston for the Eastern District of Texas, Assistant Director Luis Quesada of the FBI Criminal Investigative Division, and Acting Special Agent in Charge James J. Dwyer of the FBI Dallas Field Office made the announcement.

The FBI is investigating the case.

Trial Attorneys Vasanth Sridharan and Lucy Jennings of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Texas are prosecuting the case.

BEAUMONT, Texas – The FBI, in partnership with Homeland Security Investigations and the National Center for Missing and Exploited Children, is issuing a national public safety alert regarding an explosion in incidents of children and teens being coerced into sending explicit images online and extorted for money—a crime known as financial sextortion.

Over the past year, law enforcement has received over 7,000 reports related to the online financial sextortion of minors, resulting in at least 3,000 victims, primarily boys, and more than a dozen suicides. A large percentage of these sextortion schemes originate outside of the United States, and primarily in West African countries such as Nigeria and Ivory Coast. As many children enter winter break this holiday season, the FBI and our partners implore parents and caregivers to engage with their kids about financial sextortion schemes so we can prevent them in the first place.  

“What is your child doing on-line during the holidays,” asked U.S. Attorney Brit Featherston.  “Unbeknownst to many parents, kids get caught on-line, tricked by adult predators into revealing something private or personal, even exposing themselves.  Then the predator threatens to go public or send the information to the child’s parents unless the child sends money or provides other improper photos to the predator.  This is electronic extortion and it’s a crime that happens frequently, so know what your child is doing on-line this holiday season.”

“The FBI has seen a horrific increase in reports of financial sextortion schemes targeting minor boys—and the fact is that the many victims who are afraid to come forward are not even included in those numbers,” said FBI Director Christopher Wray. “The FBI is here for victims, but we also need parents and caregivers to work with us to prevent this crime before it happens and help children come forward if it does. Victims may feel like there is no way out—it is up to all of us to reassure them that they are not in trouble, there is hope, and they are not alone.”

“The protection of children is a society’s most sacred duty,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “It calls on each of us to do everything we can to keep kids from harm, including ensuring the threats they face are brought into the light and confronted. Armed with the information in this alert message, parents, caregivers, ad children themselves should feel empowered to detect fake identities, take steps to reject any attempt to obtain private material, and if targeted, have a plan to seek help from a trusted adult.”

Financial sextortion schemes occur in online environments where young people feel most comfortable—using common social media sites, gaming sites, or video chat applications that feel familiar and safe.  On these platforms, online predators often use fake female accounts and target minor males, between 14 to 17 years old but the FBI has interviewed victims as young as 10 years old.

“The sexual exploitation of children is a deplorable crime. HSI special agents will continue to exhaust every resource to identify, locate, and apprehend predators to ensure they face justice,” said Steve K. Francis, HSI Acting Executive Associate Director. “Criminals who lurk in platforms on the internet are not as anonymous as they think. HSI will continue to leverage cutting-edge technology to end these heinous acts.”

Through deception, predators convince the young person to produce an explicit video or photo. Once predators acquire the images, they threaten to release the compromising material unless the victim sends money or gift cards. Often the predators demand payment through a variety of peer-to-peer payment applications. In many cases, however, predators release the images even if payments are made. The shame, fear, and confusion that victims feel when they are caught in this cycle often prevents them from asking for help or reporting the abuse.

“This is a growing crisis and we've seen sextortion completely devastate children and families,” said Michelle DeLaune, CEO of the National Center for Missing & Exploited Children. “As the leading nonprofit focused on child protection, we've seen first-hand the rise in these cases worldwide. The best defense against this crime is to talk to your children about what to do if they're targeted online. We want everyone to know help is out there and they're not alone.”

What if you or your child is a victim?

If young people are being exploited, they are victims of a crime and should report it. Contact your local FBI field office, call 1-800-CALL-FBI, or report it online at tips.fbi.gov.

The National Center for Missing and Exploited Children (NCMEC) has outlined steps parents and young people can take if they or their child are a victim of sextortion, including:

• Remember, the predator is to blame, not your child or you.
• Get help before deciding whether to pay money or otherwise comply with the predator. Cooperating or paying rarely stops the blackmail and continued harassment.
• REPORT the predator’s account via the platform’s safety feature.
• BLOCK the predator and DO NOT DELETE the profile or messages because that can be helpful to law enforcement in identifying and stopping them.
• Let NCMEC help get explicit images of you off the internet.
• Visit org/IsYourExplicitContentOutThere to learn how to notify companies yourself or visit cybertipline.org to report to us for help with the process.
• Ask for help. This can be a very complex problem and may require help from adults or law enforcement.
• If you don’t feel that you have adults in your corner, you can reach out to NCMEC for support at gethelp@ncmec.org or call NCMEC at 1-800-THE-LOST.

Take a moment to learn how sextortion works and how to talk to your children about it. Information, resources, and conversation guides are available at fbi.gov/StopSextortion.

SHERMAN, Texas - A Lubbock man has been sentenced to 35 years in federal prison for trafficking drugs through the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.

Mark Anthony Calzadias, 48, pleaded guilty on Dec. 20, 2021, to conspiracy to possess with intent to distribute five kilograms or more of cocaine and conspiracy to commit money laundering and was sentenced to 420 months in federal prison today by U.S. District Judge Amos Mazzant.

According to information presented in court, between 2017 and 2018, seven incidents associated with the Calzadias Drug Trafficking Organization (DTO) resulted in the seizure of 10 kilograms of cocaine and $1,664,620 in U.S. currency. A joint investigation revealed that Mark Anthony Calzadias, Michael Calzadias, and Thomas Calzadias were the main sources of supply for the drugs, including cocaine, which were imported from Mexico, and transported from the Rio Grande Valley through the Eastern District of Texas to St. Louis, Missouri; Danville, Virginia; Greenville, South Carolina; Atlanta, Georgia; Fort Meyers, Florida; and other areas in the United States. Over the course of the conspiracy, the Calzadias DTO was responsible for the transportation of over 1,000 kilograms of cocaine.  The investigation resulted in the seizure of $1.6 million in U.S. Currency.

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.

###

BEAUMONT, Texas– A Silsbee man has been indicted on federal child exploitation charges in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.

Adam Dale Isaacks, 39, was named in an indictment returned by a federal grand jury on Dec. 7, 2022, charging him with six counts of transportation of a minor for sexual activity. 

According to prosecutors, in 2020 and 2021, Isaacks was a youth coach and president of the Evadale Little League Baseball organization and a trusted member of the community.  During this time, Isaacks is alleged to have transported minors from Texas to other states for sporting and camping events with intent to engage in sexual activity with the minor.

If convicted, Isaacks faces from 10 years to life in federal prison.

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.

An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. 

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.

###

BEAUMONT, Texas - A Houston man was sentenced to federal prison for trafficking drugs through the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.

Jaime Garcia-Sanchez, 20, pleaded guilty on July 14, 2022, to possession with intent to distribute cocaine and was sentenced to 52 months in federal prison today by U.S. District Judge Marcia A. Crone.  Co-defendant, Daniel Corona Avalos, a Mexican national, was sentenced to 57 months in federal prison on Dec. 1, 2022.

According to information presented in court, on March 4, 2022, Garcia-Sanchez and Avalos were stopped by law enforcement on Hwy 59 in Nacogdoches.  During a consent search of the vehicle, law enforcement officers located 16 kilograms of cocaine hidden inside the vehicle’s bumper.  Garcia-Sanchez and Avalos were trafficking the drugs through the Eastern District of Texas to Chicago for further distribution.  They were indicted by a federal grand jury on April 6, 2022 and charged with drug trafficking violations.

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 the Nacogdoches Police Department and prosecuted by Assistant U.S. Attorney Michael Anderson.

###

A Shreveport, Louisiana mother and son are among those indicted on federal charges in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.

Angela Speech, 43; her son, Jeremy Marshall, 24; Devonaire Jones, 35; and Camyl Lewis, 24, were indicted by a federal grand jury on Nov. 16, 2022, and charged with multiple counts of student financial aid fraud.  Speech and Marshall made initial appearances before U.S. Magistrate Judge John D. Love on Dec. 7, 2022.

According to the indictment, between August 2019 and February 2020, Speech was the director of financial aid at Texas College in Tyler.  According to its website, Texas College is a historically black private college founded by Christian Methodist Episcopal Church ministers in 1894.  Speech allegedly used her access to students’ financial aid accounts to trigger financial aid payments to Marshall, Jones, Lewis, and others that they were not entitled or eligible to receive.  Altogether, Speech and these students, aided and abetted by each other and others, knowingly and willfully misapplied, stole, and obtained by fraud, false statement, and forgery funds, assets, and property provided and insured under the Pell Grant Program, the William D. Ford Federal Direct Loan Programs, and other federal subsidized and unsubsidized loan programs.

If convicted, the defendants each face 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.

This case is being investigated by the U.S. Department of Education—Office of Inspector General and the U.S. Secret Service and prosecuted by Assistant U.S. Attorneys Robert Austin Wells and Lucas Machicek.

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

###

TYLER, Texas – A Whitehouse, Texas, man has been sentenced for a federal income tax violation in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.

Anthony D. Klein, 48, pleaded guilty on March 30, 2022, to attempting to evade or defeat tax and was sentenced to 18 months in federal prison today by U.S. District Judge Jeremy D. Kernodle.  Klein was ordered to pay restitution in the amount of $404,292 to the IRS.

According to information presented in court, for tax year 2016, Klein filed an IRS Form 1040, U.S. Individual Income Tax Return, with the Internal Revenue Service.  On that form, he claimed that he had no taxable income and that he was entitled to credits in the amount of $5,836.00.  In fact, he had taxable income of approximately $538,188.07 for tax year 2016.  In filing the return, Klein intended to evade and defeat the payment of income tax that was due and owing to the United States. 

Klein admitted that the tax loss for tax year 2016 is $194,780; for tax year 2017 is $98,431.00; for tax year 2018 is $74,191.00; and for tax year 2019 is $36,890.00, for a total tax loss of $404,292.00.

The case was investigated by the Internal Revenue Service-Criminal Investigation and prosecuted by Assistant U.S. Attorney Alan R. Jackson.

###

TYLER, Texas - A Lindale man has been sentenced to federal prison for child pornography violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.

Michael James Quam, 29, pleaded guilty on July 20, 2022, to possessing or accessing child pornography and was sentenced to 87 months in federal prison today by U.S. District Judge Jeremy D. Kernodle.

According to information presented in court, on March 5, 2020, a law enforcement official, working undercover, connected to a social media sharing group.  A user in the group, later identified as Quam, posted to the group a link to a “cloud storage” provider that led to a folder providing access to files that included videos containing child pornography.  Quam admitted that he knew the folder included videos of child pornography when he posted the link to the group.  Quam was indicted by a federal grand jury on March 17, 2022 and charged with federal violations.

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 Federal Bureau of Investigation and Homeland Security Investigations and prosecuted by Assistant U.S. Attorney Alan R. Jackson.

###

TYLER, Texas – According to court documents unsealed today, 21 individuals have been charged for their roles in transnational money laundering networks, including those that laundered millions of dollars stolen from United States fraud victims through romance scams, business email compromises, technical support schemes, and other fraud schemes.

U.S. Attorney Brit Featherston of the Eastern District of Texas, William Smarr, Special Agent in Charge of the U.S. Secret Service’s (USSS) Dallas Field Office, and Inspector in Charge Thomas Noyes of the U.S. Postal Inspection Service announced Operation Crypto Runner, an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation into transnational cryptocurrency money laundering networks that facilitate the movement of fraud proceeds from victims in the United States to foreign criminal organizations.

“These defendants orchestrated highly organized and sophisticated schemes to launder fraud proceeds through cryptocurrency,” said U.S. Attorney Brit Featherston.  “Today’s announcement sends a clear message that money laundering networks that service fraud schemes targeting American victims, especially the elderly, will not be tolerated, and those operating such networks will be held accountable.  By acting as domestic money launderers for foreign co-conspirators, these defendants played indispensable roles that allowed foreign actors to reach from overseas to target victims in communities across the United States.” 

“Today’s announcement demonstrates the investigative capabilities of the Secret Service and highlights the success of our collaborative efforts through Operation Crypto Runner to dismantle and disrupt transnational money laundering networks,” said William Smarr, Special Agent in Charge of the U.S. Secret Service’s Dallas Field Office.  “These arrests are just the beginning.  We are committed to bringing each of the remaining perpetrators to justice.”

“These cases stem from a multi-year operation initiated in the Eastern District of Texas by Postal Inspectors and the Secret Service,” said Thomas Noyes, Inspector in Charge of the Postal Inspection Service’s Fort Worth Division.  “Cybercrime has become an all-too-common way for foreign criminal actors to prey on Americans. Interagency cooperation is essential to be effective in disrupting organized crime. I commend the exceptional work of our law enforcement partners and emphasize our agency’s ongoing commitment to combatting fraud and money laundering schemes.”

To date, the Operation has disrupted more than $300 million in annual money laundering transactions, seized and forfeited millions in cash and cryptocurrency, and identified thousands of victims.

Some of the schemes alleged in the indictments include the following:

• U.S. v. Zenobia Walker, 6:20-CR-91-JCB/KNM (11/19/2020)

Zenobia Walker, 65, of Temple Hills, Maryland, pleaded guilty on January 6, 2022, to conspiracy to operate an unlicensed money transmitting business and was sentenced to 18 months in federal prison on November 2, 2022.  Walker was involved in a scheme in which she received cash by mail, money orders, wire transfers, and cashier’s checks obtained from victims of romance scams and from victims of other fraud schemes.  The funds were deposited into Walker’s personal bank accounts and withdrawn and deposited into other bank accounts in order to exchange the funds for cryptocurrency.  Between December 2019 and September 2020, Walker exchanged $308,800.00 for cryptocurrency on behalf of her foreign co-conspirators.

• U.S. v. Tulasidas Konda, 6:20-CR-31-JDK/JDL (4/23/2021)

Tulasidas Konda, 57, of Amelia Court House, Virginia, pleaded guilty on May 5, 2021, to conspiracy to commit money laundering.  Konda led and organized a multi-year money laundering conspiracy involving the laundering of criminal proceeds derived from various scams.  Konda’s organization opened bank accounts and mailboxes that were used to receive and transact victim funds, received the victim funds, engaged in subsequent financial transactions, routinely structured in amounts under $10,000 in an effort to evade reporting requirements and to conceal the nature and source of the criminal proceeds, and moved the criminal proceeds to foreign co-conspirators.  Konda’s organization routinely exchanged the criminal proceeds for cryptocurrency and directed the cryptocurrency to wallets under the control of their foreign co-conspirators.  In the course of the operation, Konda was personally responsible for laundering $4,172,061.58 in criminal proceeds.

• U.S. v. Deependra Bhusal, 6:21-CR-32-JDK/JDL (4/23/2021)

Deependra Bhusal, 46, of Irving, Texas, pleaded guilty on April 30, 2021, to conspiracy to commit money laundering and was sentenced to 46 months in federal prison on April 6, 2022.  Bhusal was a key member of the Konda  Organization. In the course of the operation, Bhusal was personally responsible for laundering $1,437,358.99 in criminal proceeds.

• U.S. v. Lois Boyd, et al., 6:21-CR-43-JDK/KNM (6/16/2021)

Lois Boyd, 76, of Amelia Court House, Virginia, pleaded guilty on June 14, 2022, to a violation of the Travel Act.  Boyd, also a member of the Konda Organization, is alleged to have conspired with others to receive victim money derived from a variety of fraud schemes and launder the proceeds through cryptocurrency.  Boyd routinely structured deposits in order to avoid transaction reporting requirements and to conceal the nature and source of the criminal proceeds.  Boyd and others in the Konda Organization exchanged the criminal proceeds for cryptocurrency and directed the cryptocurrency to wallets under the control of their foreign co-conspirators.  In August 2020, Boyd and others traveled to Longview, Texas, where they attempted to exchange more than $450,000 for Bitcoin. 

• U.S. v. John Khuu, 6:22-CR-62-JCB/JDL (5/18/2022)

John Khuu, 27, of San Francisco, California was named in an indictment returned by a federal grand jury charging him in a money laundering conspiracy.  According to the indictment, Khuu is alleged to have conspired with others to launder the proceeds of his drug trafficking organization through cryptocurrency.  The defendant allegedly distributed counterfeit pharmaceutical pills and other controlled substances on dark web markets to customers across the United States.  Customers paid for their purchases by transferring cryptocurrency, usually Bitcoin, from their dark web market customer accounts to one of Khuu’s vendor accounts.  Khuu and his co-conspirators traded the Bitcoin for U.S. currency and laundered the proceeds through hundreds of transactions and dozens of financial accounts.  During the course of the conspiracy, Khuu and his co-conspirators allegedly laundered more than $5,350,000.00.  On August 17, 2022, Khuu was also charged by a federal grand jury in the Northern District of California in a two-count indictment charging him with unlawful importation of a controlled substance.

• U.S. v. Randall V. Rule, et al., 6:22-CR-64-JDK/KNM (5/18/2022)

Randall V. Rule, 71, of Reno, Nevada, and Gregory C. Nysewander, 64, formerly of Irmo, South Carolina, were named in an indictment returned by a federal grand jury charging them with money laundering conspiracy, money laundering, and a conspiracy to violate the Bank Secrecy Act.  According to the indictment, Rule and Nysewander are alleged to have conspired with others to launder the proceeds of wire fraud and mail fraud schemes through cryptocurrency.  The defendants converted funds from romance scams, business email compromises, and real estate scams, and other fraudulent schemes into cryptocurrency and sent the cryptocurrency to accounts controlled by foreign and domestic co-conspirators.  The defendants and their co-conspirators made false representations and concealed material facts, in order to avoid discovery of the fraudulent nature of deposits, wires, and transfers, such as providing instructions to co-conspirators and victims to label wire transfers as “loan repayments” and “advertising.”  The defendants also made false representations and concealed material facts when completing account opening documents and when communicating with financial institutions and cryptocurrency exchanges.  During the course of the conspiracy, Rule, Nysewander, and their co-conspirators allegedly laundered more than $2.4 million.  Rule and Nysewander are also charged with willfully violating the money services business requirements of the Bank Secrecy Act.

• U.S. v. Sharena Seay, 6:22-CR-110-JDK/JDL (8/17/2022)

Sharena Seay, 37, of Jacksonville, Florida, was named in an indictment returned by a federal grand jury charging her with money laundering.  According to the indictment, Seay is alleged to have laundered the proceeds of her drug trafficking operations through cryptocurrency.  The defendant allegedly supplied alpha-Pyrrolidinopentiophenone (alpha-PVP), which is often called “flakka,” and similar synthetic cathinones, such as Eutylone or alpha-PiHP.  Seay distributed alpha-PVP and other controlled substances to various customers across the United States.  Customers who purchased controlled substances from Seay paid for their purchases with cash.  Seay laundered the cash proceeds through cryptocurrency in order to purchase more controlled substances on the dark web and to conceal her criminal activity.  During the course of the conspiracy, Seay allegedly laundered more than $1.2 million.

• U.S. v. Fnu Ankush, et al., 6:22-CR-111-JCB/KNM (8/17/2022)

Fnu Ankush, 35, of Fishers, Indiana, Jenisha Katuwal, 40, of Fishers, Indiana, Sukhwinder Sandhu, 44, of Philadelphia, Pennsylvania, Inder Singh, 37, of Philadelphia, Pennsylvania, Mukul Khanna, 37, of Philadelphia, Pennsylvania, Satinder Singh, 36, of Philadelphia, Pennsylvania, Ramneek Singh, 28, of Levittown, New York, Muninder Singh, 52, of Fairfax, Virginia, Sandeep Heir, 43, of Fresno, California, and Rachel Mullins, 36, of Jacksonville, Florida, were named in an indictment returned by a federal grand jury charging them in a wire and mail fraud conspiracy.   According to the indictment, the defendants facilitated technical support schemes by creating a financial infrastructure in the United States that involved establishing shell companies with names intended to resemble names of legitimate companies.  The defendants opened and controlled business bank accounts in the names of the shell companies in order to facilitate the computer tech scheme.  The defendants also established websites for many of the shell companies in order to make the shell companies appear legitimate.  Then, through false and fraudulent pretenses, representations, and promises, and concealment of material facts, the defendants and their co-conspirators persuaded victims to deposit, wire, or transfer funds into designated bank accounts or to mail funds to designated addresses.

These efforts are part of Operation Crypto Runner, 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.

In October 2017, the Elder Abuse Prevention and Prosecution Act (EAPPA) was signed into law.  The EAPPA’s purpose is to increase the federal government’s focus on preventing elder abuse and exploitation.  Subsequently, the Department of Justice launched the Elder Justice Initiative (EJI).  Through the EJI, the Department has participated in hundreds of criminal and civil enforcement actions involving misconduct that targeted vulnerable seniors.  The Department has conducted hundreds of trainings and outreach sessions across the country.  The EJI website contains useful information, including educational resources about prevalent financial scams so you can guard against them.

In August 2020, the Eastern District of Texas announced its own initiative, in partnership with law enforcement and private financial institutions, to identify and prosecute transnational elder fraud.  This EDTX initiative is designed to combat these criminal organizations, both foreign and domestic, as well their networks of associates and money mules who launder the stolen funds. 

The investigations arising from the operation are being conducted by the U.S. Secret Service and the U.S. Postal Inspection Service and are being led and prosecuted by Assistant U.S. Attorneys Nathaniel C. Kummerfeld and L. Frank Coan, Jr., with assistance from the Criminal Division’s Fraud Section and Computer Crime and Intellectual Property Section and the Department’s Office of International Affairs.

###

 

TEXARKANA, Texas – Three Houston men have been sentenced to prison for federal violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.

Marvin Charles Collins, 33; Aqunis Marquis Green, 23; and Antonio Thomas Foster, 21; each pleaded guilty on July 19, 2022, to conspiracy to commit bank theft.  Today, Collins was sentenced to 29 months in federal prison and ordered to pay restitution of $257,789; Green was sentenced to 46 months in federal prison and ordered to pay restitution in the amount of $70,324; and Foster was sentenced to 21 months in federal prison and ordered to pay restitution of $70,324.  The sentencing hearings were held in front of U.S. District Judge Robert W. Schroeder, III.

According to information presented in court, Collins, Green, and Foster, along with four other co-conspirators, conspired 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.    

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.

###

TEXARKANA, Texas– A Cleveland, Texas man and woman have been sentenced to federal prison for wire fraud violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.

Clifton Pape, 47, and Sally Jung, 59, each pleaded guilty on May 6, 2022 to wire fraud violations and were sentenced to federal prison today by U.S. District Judge Robert W. Schroeder III.  Pape was sentenced to 121 months in federal prison and Jung received a sentence of 66 months in federal prison.  They were also ordered to forfeit $680,710.31 and pay more than $3.7 million in monetary penalties.

According to court documents, Pape and Jung operated a sophisticated telemarketing scheme under the name My Buddy Loans from a house in Cleveland, Texas. In exchange for a fee, My Buddy Loans took personal identifying information from victims and promised to file an application for an agricultural grant, which they said was available to those who owned as little as one acre of land. Instead, Pape and Jung actually filed fraudulent EIDL applications with the SBA that contained the victims’ personal identification information. Based on these fraudulent applications, the SBA issued more than $1.56 million in EIDL Advances to people who were not eligible. Pape and Jung also submitted applications for an additional $1.44 million in EIDL Advances that were not funded because--among other reasons--the congressionally appropriated funds for the EILD Advance program were exhausted.

Pape and Jung used Square’s credit and debit card processing service to charge third parties the fee. Pape and Jung completed at least 700 successful charges, obtaining at least $700,000 in fees. Pape and Jung then transferred the proceeds of the fraud scheme into a bank account they controlled.  On one occasion, Pape used the fraud proceeds to pay a traffic ticket.  On another occasion, Pape and Jung used more than $3600 from the fraud scheme to pay for a stay at La Cantera Resort in San Antonio.  A picture from that stay shows Pape and Jung celebrating over sparkling wine and other beverages.

“This investigation closed down one of the largest COVID fraud schemes in the country in terms of the number of fraudulent EIDL applications,” said U.S. Attorney Brit Featherston. “Well intended and needed economic assistance (taxpayer dollars) was brazenly stolen from legitimate deserving applicants. We are asking those with information about the My Buddy Loan fraud scheme, including those who believe they may be victims, to call the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or file a complaint using the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.”

“The Small Business Administration’s Economic Injury Disaster Loan program (EIDL) was designed to help businesses adversely affected by the pandemic,” said Resident Special Agent in Charge William Mack of the U.S. Secret Service Tyler Resident Office.  “Clifton Pape and Sally Jung, however, viewed the government’s direct response to the unprecedented size and scope of pandemic relief fraud as an opportunity to illicitly line their own pockets.  As this sentencing illustrates, the Secret Service, along with its law enforcement partners, is committed to holding these criminals accountable for their fraudulent activities.”  

“Conspiring to defraud SBA’s programs is a flagrant attempt to rob the nation’s small businesses of vital funds that are used to assist in building the economy,” said SBA OIG’s Central Region Special Agent in Charge Sharon Johnson. “OIG is focused on rooting out bad actors in these vital SBA programs.  I want to thank the Department of Justice and our law enforcement partners for their dedication to justice.”   

The CARES Act is a federal law enacted in March 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic.  One source of relief provided by the CARES Act was the authorization or EIDL advances and low-interest loans to small businesses to meet financial obligations and operating expenses that could have been met had the disaster not occurred. Under the EIDL program applicants were eligible for a forgivable advance of up to $10,000 if the applicant had ten or more employees.

This case was investigated by the U.S. Secret Service and the Small Business Administration-Office of Inspector General and prosecuted by Assistant U.S. Attorney Jonathan R. Hornok.

# # #

PLANO, Texas – A Dallas man has been indicted for federal drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today. 

Brian Demarcus Davis, also known as “Tink”, 37, was named in a four-count indictment returned by a federal grand jury on Nov. 9, 2022 in the Eastern District of Texas.  The indictment charges Davis with multiple federal violations including conspiracy to distribute fentanyl, heroin, and methamphetamine, and possession of a firearm in furtherance of narcotics trafficking.  Davis made his initial appearance on Nov. 21, 2022, before U.S. Magistrate Judge Kimberly C. Priest Johnson.   

According to the indictment, in September 2022, the North Texas OCDETF Strike Force 2 (SF2), with the assistance of the Dallas Police Department and the Collin County Sheriff's Office, began investigating Dallas-based drug traffickers selling fentanyl and fentanyl-laced heroin. Deconfliction efforts found that Dallas PD had previously executed a search warrant on a “trap” house run by the targets of the SF2 investigation, resulting in the recovery of kilograms of methamphetamine, a half kilogram of raw powdered fentanyl, firearms, and body armor.  Davis was identified as a possible fentanyl & heroin source of supply and ultimately alleged to be responsible for an overdose death in Collin County.

If convicted, Davis faces up to life in federal prison.

This case is being investigated by the U.S. Postal Inspection Service; U.S. Marshals Service; IRS-Criminal Investigations; Dallas Police Department; Collin County Sheriff's Office; and Drug Enforcement Administration.  The case is being prosecuted by Assistant U.S. Attorney Heather Rattan.

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.

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.

###

TYLER, Texas – A Nevada man and a South Carolina man have been indicted in a cryptocurrency money laundering conspiracy in the Eastern District of Texas, announced U.S. Attorney Brit Featherston.

Randall V. Rule, 71, of Reno, NV, and Gregory C. Nysewander, 64, formerly of Irmo, SC, were named in an indictment returned by a federal grand jury this week, charging them with money laundering conspiracy, money laundering, and a conspiracy to violate the Bank Secrecy Act. 

According to the indictment, Rule and Nysewander are alleged to have conspired with others to launder the proceeds of wire fraud and mail fraud schemes through cryptocurrency.  The defendants converted funds from romance scams, business email compromises, and real estate scams, and other fraudulent schemes into cryptocurrency and sent the cryptocurrency to accounts controlled by foreign and domestic co-conspirators.  The defendants and their co-conspirators made false representations and concealed material facts, in order to avoid discovery of the fraudulent nature of deposits, wires, and transfers, such as providing instructions to co-conspirators and victims to label wire transfers as “loan repayments” and “advertising.”  The defendants also made false representations and concealed material facts when completing account opening documents and when communicating with financial institutions and cryptocurrency exchanges.  During the course of the conspiracy, Rule, Nysewander, and their co-conspirators allegedly laundered more than $2.4 million.  Rule and Nysewander are also charged with willfully violating the money services business requirements of the Bank Secrecy Act.

If convicted, Rule and Nysewander face up to 20 years in federal prison on each money laundering charge and up to 5 years in federal prison on the conspiracy to violate the Bank Secrecy Act charge.  A grand jury indictment is not evidence of guilt.  A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

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 U.S. Secret Service and the U.S. Postal Inspection Service and is being prosecuted by Assistant U.S. Attorney Nathaniel C. Kummerfeld.

###