Eastern District of Texas

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

Reynaldo Campos, Jr., 44, pleaded guilty to murder for hire today before U.S. Magistrate Judge K. Nicole Mitchell. 

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 pleaded guilty on August 9, 2022, to possession of a firearm in furtherance of a drug trafficking crime and is awaiting sentencing. 

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

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

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SHERMAN, Texas – The former mayor of Richardson, Texas, and a land developer whom she married after the federal investigation began, have been sentenced for their public corruption convictions in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.

Laura Jordan, also known as Laura Maczka, 57, and Mark Jordan, 55, both of Plano, Texas were convicted by a jury on July 24, 2021, of bribery concerning a program receiving federal funds, conspiracy to commit bribery concerning a program receiving federal funds, tax fraud, and conspiracy to commit tax fraud.  Laura Jordan was sentenced to 72 months in federal prison today by U.S. District Judge Amos Mazzant.  Mark Jordan was also sentenced today by Judge Mazzant and received 72 months in federal prison.

“Citizens should be able to trust that their elected representatives honestly conduct themselves in a manner that solely benefits the community,” said U.S. Attorney Brit Featherston.  “When the greed of personal gain and benefit results from official actions taken on the pretense of altruistic motives, then the integrity of the whole process is corrupted. Jordan and Maczka have now been convicted by a jury of their peers and their punishment should reflect some measure of repair of that trust by the citizens of Richardson, Texas.”

“For the residents of Richardson, today is a step toward rebuilding public trust,” said Dallas FBI Special Agent in Charge Matthew J. DeSarno. “Laura Jordan violated her obligation to serve her constituents, and along with Mark Jordan, carried out a conspiracy to commit bribery and tax fraud all while concealing their illicit conduct from the City of Richardson and its taxpayers. Our elected officials are held to the highest standards, and the FBI will continue to ensure that those who disregard their duty to serve the public are held fully accountable.”

According to information presented in court, from May 2013 through April 2015, Laura Maczka was the mayor of Richardson, Texas, and Jordan was a land developer.  Maczka and Jordan conspired to devise and execute a scheme to commit bribery.  Maczka, contrary to her campaign promises, supported and repeatedly voted for controversial zoning changes sought by Jordan, ultimately allowing for the construction of over 1,000 new apartments in Richardson near other Richardson neighborhoods. In exchange, Jordan paid Maczka over $18,000 in cash, an additional $40,000 by check, and paid for over $24,000 in renovations to Maczka’s home.  Jordan also paid for luxury hotel stays and airfare upgrades for Maczka and provided Maczka lucrative employment at one of Jordan’s companies.  According to court testimony, Maczka and Jordan failed to disclose to the public that they had coordinated to affect the zoning changes Jordan wanted and that Jordan had provided a stream of benefits to Maczka.

Maczka and Jordan were indicted by a federal grand jury on May 10, 2018. 

This case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service-Criminal Investigations, and the City of Richardson.  This case was prosecuted by Assistant U.S. Attorneys Heather Rattan, Sean Taylor, Brent Andrus, Anand Varadarajan, Bradley Visosky, and other attorneys from the Plano branch office. 

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

Aakash Kalpesh Gandhi, 28, pleaded guilty on Nov. 4, 2021, to conspiracy to commit mail fraud and was sentenced to 51 months in federal prison today by U.S. District Judge Marcia Crone.  Judge Crone also ordered Gandhi ordered to pay restitution his victims, many of whom are elderly.  The exact amount has not yet been determined.

“We need help getting the word out to look out for our neighbors,” said U.S. Attorney Brit Featherston.  “Our greatest generation is constantly being attacked by phone and computer scammers.  Tricked, our elderly and some not-so elder generations are falling prey to phone scammers who threaten them with jail time if they don’t withdraw, package and mail money across the country.  No government agency will threaten you with jail over the phone and then demand cash be wrapped in foil and mailed.  Scoundrels like Gandhi take advantage of our senior citizens and he was part of a very large network that houses hundreds of callers who spend their days calling and scamming.  When in doubt about a possible scam call or email, contact someone you trust and ask them if the call is legitimate or contact your local law enforcement.  Gandhi’s scam would have been thwarted if a victim would have simply googled ‘social security phone scams,’ and the very quick search result would show the phone call was a scam.   Preventing someone from being a victim is a lot easier than trying to recover the stolen money after the fact.”

According to information presented in court, Gandhi and his co-conspirators operated a scheme designed to defraud victims throughout the United States.  Co-conspirators from call centers based in India would target unsuspecting victims claiming that those victims would suffer financial ruin or criminal liability if they did not immediately send money to correct fictional problems often involving the victim’s social security benefits.  To enhance the viability of the scheme, co-conspirators fraudulently identified themselves as government agents to their unsuspecting victims. 

Gandhi tracked currency shipments for the conspiracy and recovered packages of United States currency shipped by those who had been victimized by the scheme, including victims within the Eastern District of Texas.  Gandhi would receive a fee from a portion of the contents of those packages and deliver the remaining currency to co-conspirators.  A majority of the funds were ultimately distributed to various locations in India.  Gandhi was indicted by a federal grand jury in Beaumont on July 8, 2021. 

The U.S. Attorney’s Office has made a concerted effort to not only prosecute those involved with these illegal activities, but to educate and inform the public on the many fraudulent schemes targeting our seniors and how to avoid them.  Assistant U.S. Attorneys across the Eastern District of Texas have visited various senior facilities and community groups to provide outreach and educate the public on how to protect themselves and their families.  Groups or organizations that are interested in securing a speaker for their event should contact Assistant U.S. Attorney Camelia Lopez at 972-509-1201. 

If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311).  This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim, and identifying relevant next steps.  Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis.  Reporting is the first step.  Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses.  The hotline is staffed 10am-6pm Eastern Time, Monday-Friday. English, Spanish, and other languages are available.   

This case was investigated by Homeland Security Investigations in Seattle and Houston, the Seattle (WA) Police Department, Department of Human Services-OIG, Treasury Inspector General for Tax Administration (TIGTA), and the Beaumont Police Department.  This case was prosecuted by Assistant U.S. Attorney Jonathan C. Lee.

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BEAUMONT, Texas – A Mexican national has been sentenced for an attempted prison escape in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.

Juan Fidencio Romo-De La Rosa, 39, of Muzquiz, Coahuila, Mexico, pleaded guilty on Dec. 28, 2021, to escape from federal custody and was sentenced to 27 months in federal prison by U.S. District Judge Thad Heartfield on July 27, 2022.  The 27-month sentence was ordered to be served following an eight-year sentence De La Rosa was already serving at the time of the attempted escape.  De La Rosa was previously convicted of transporting illegal aliens for financial gain and being a felon in possession of a firearm in 2019 in the Western District of Texas. 

According to court documents, on Oct. 7, 2020, officers at the Federal Correctional Institute (FCI)-Beaumont-Medium were alerted to an active fence alarm. Federal Bureau of Prisons (BOP) officers found an injured and bloodied inmate, identified as De La Rosa, in the process of climbing the outer perimeter razor wire fence. De La Rosa, bleeding from the razor wire, had already cleared an interior fence during his attempted escape. Upon being caught, De La Rosa surrendered to the guards at gun point without incident.

“Rest assured that those who threaten the safety and security of other inmates, staff, and the surrounding community, by escaping and attempting to escape from federal prison will be caught and will surely not escape justice either,” said U.S. Attorney Brit Featherston.  “Their reward instead, will be additional time in federal prison tacked on to their current sentence.”

This case was investigated by the FBI and Federal Bureau of Prisons and prosecuted by Special Assistant U.S. Attorney Nicole Stratso.

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SHERMAN, Texas – A federal grand jury in Texas has indicted former executives and company leaders at Electronic Transactions Systems Corporation (“ETS”) for their conduct in defrauding approximately 7,000 merchant clients out of millions of dollars, announced Eastern District of Texas U.S. Attorney Brit Featherston today.

Edward Walsh Vaughan, 58, of California; Hadi Akkad, 49, of Virginia; Jill Hall Mandichak, 43, of Virginia; Sean Lynch, 50, of Virginia; Katherine Nguyen, 38, of North Carolina; and Gina Ellingsen, 43, of Minnesota, were all charged with conspiracy to commit wire fraud.  Vaughan and Akkad were also charged with money laundering conspiracy. 

ETS was a card processing company located in Virginia that provided equipment and services to facilitate credit and debit card payment transactions for merchant clients, including government municipalities, private businesses, and charity organizations throughout the country.  According to the indictment, between 2012 and 2019, the defendants, at the direction of ETS president Ed Vaughan, are alleged to have defrauded ETS merchant clients by deliberately disguising a portion of their processing fees for thousands of clients.  The indictment describes how the defendants executed their fraud, including by embedding the hidden markups in “Interchange fees,” misleading merchant clients in emails and contracts, and failing to disclose the true fee structure in billing and account statements. 

The indictment also details how Vaughan and Akkad used the fraudulently obtained funds to personally enrich themselves through multimillion-dollar bonuses, luxury vehicles and private aircraft, and high-end real estate purchases.  In addition, because the fraud was concealed prior to ETS’ acquisition, Vaughan received an additional $107 million, and Akkad received $33 million from the sale of the company. 

If convicted, the defendants each face up to 30 years in federal prison.

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’s Washington Field Office and is being prosecuted by Assistant U.S. Attorneys in the Eastern District of Texas.

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PLANO, Texas – An Allen, Texas man has been indicted for federal crimes arising from a scheme to extract Unemployment Insurance (UI) benefits under the Coronavirus Aid, Relief, and Economic Security (CARES) Act using the stolen identity of others, announced U.S. Attorney Brit Featherston today. 

Hilton Ray Kersh, 64, was charged in an indictment filed in the Eastern District of Texas with seven counts of illegal transactions with an access device and seven counts of aggravated identity theft.  The indictment alleges that Kersh used multiple bank cards issued to individuals other than himself to withdraw funds from ATMs.  The debit cards had been loaded with UI benefit funds based on unemployment relief applications made to the Texas Workforce Commission pursuant to the CARES Act.  The individuals whose names appear on the debit cards -- and whose names were used to apply for the benefits -- did not authorize Kersh to use their identities.  If convicted, Kersh faces up to 15 years in federal prison for the illegal transactions with an access device charges and two additional years for the aggravated identity theft charges. 

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

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

This case is being investigated by the U. S. Department of Labor Office of Inspector General.  Assistant U.S. Attorney Brent L. Andrus is prosecuting the case.

A federal criminal indictment is merely an accusation.  A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

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BEAUMONT, Texas – A Port Arthur man has been arrested and charged in connection with federal firearms violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.

Frankie Malik Cunningham, 23, was named in a three-count indictment in the Eastern District of Texas on July 6, 2022, charging him with receipt of a firearm while under indictment, possession of a machine gun, and possession of a firearm in furtherance of a drug trafficking crime.  Cunningham was arrested on July 11, 2022 and appeared in federal court before U.S. Magistrate Judge Zack Hawthorn on July 20, 2022, and was ordered to be detained until trial.

According to information presented in court, on May 17, 2022, law enforcement officers arrived at a Port Arthur residence where Cunningham was located to serve an outstanding felony warrant.  They received consent to search from the owner of the residence and located Cunningham in a bedroom.  In the bedroom with Cunningham, they also located two Glock pistols, a rifle with a drum magazine, a pound of suspected marijuana, and several Hydrocodone pills.  One of the pistols was outfitted with a “Glock Switch.” A Glock Switch is a device used to convert a standard, legal handgun into a fully automatic machine gun.

At the time, Cunningham was under felony indictment for possession of a controlled substance.  Federal law prohibits the possession of a firearm or ammunition while under felony indictment.

If convicted, Cunningham faces up to 15 years in federal prison.

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 Port Arthur Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the U.S. Marshals Service and the Jefferson County Sheriff’s Office.  This case is being prosecuted by Special Assistant U.S. Attorney Tommy Coleman with assistance from the Jefferson County District’s Attorney’s Office.

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SHERMAN, Texas – An Anna, Texas man has been convicted for child pornography violations in the Eastern District of Texas announced U.S. Attorney Brit Featherston today. 

Chad Michael Rider, 48, was found guilty of three counts of the sexual exploitation of children, also referred to as the production of child pornography.  The jury returned the verdict late today following a five-day trial before 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.

“One of the sacred safe havens for children is the church and all it stands for.   Yet Rider and his conspirators purposefully used it as a lure to bring children in and then, despicably, exploited those children for their own perverted gratification,” said U.S. Attorney Brit Featherston.  “The jury heard all of the evidence and rendered its judgement and the law of the Eastern District of Texas federal court will render its punishment soon, at least as such punishment that may rendered on earth.”

Under federal statutes, Rider faces a mandatory minimum of 15 years and up to 30 years in federal prison on each count. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.

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

This case was investigated by Homeland Security Investigations with assistance from Anna Police Department and prosecuted by Assistant U.S. Attorneys Marisa J. Miller and Jay Combs.

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PLANO, Texas – A Dallas man has been arrested and charged in connection with multiple bank robberies across the Metroplex area, announced Eastern District of Texas U.S. Attorney Brit Featherston today.

Mark Robert Disch, 53, was named in a complaint filed in the Eastern District of Texas on July 19, 2022, charging him with two counts of bank robbery.  Disch was arrested on July 21, 2022 and appeared in federal court before U.S. Magistrate Judge Kimberly C. Priest Johnson today.

According to the complaint, Disch is alleged to have robbed five Texas banks between May 25 and June 27, 2022: two in the Eastern District of Texas and three in the Northern District of Texas. The banks were located in Lewisville, Arlington, DeSoto, Sulphur Springs, and University Park. Using video surveillance and witness accounts, along with other investigative techniques, law enforcement officers and federal agents were able to identify Disch and determine he was in the immediate vicinity of each bank robbery.

If convicted, Disch faces up to 20 years in federal prison.

A complaint, information or 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 Federal Bureau of Investigation, the Dallas Police Department, the Sulphur Springs Police Department, the Lewisville Police Department, and the University Park Police Department.  This case is being prosecuted by Eastern District of Texas Assistant U.S. Attorney Jonathan R. Hornok with assistance from Northern District of Texas Assistant U.S. Attorney Nicole Hammond.

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TYLER, Texas – The Department of Justice announced criminal charges against 36 defendants in 13 federal districts across the United States for more than $1.2 billion in alleged fraudulent telemedicine, cardiovascular and cancer genetic testing, and durable medical equipment (DME) schemes.

In connection with this national effort, the U.S. Attorney’s Office for the Eastern District of Texas has charged 21 individuals, including doctors, laboratory executives, hospital executives, and marketers for their involvement in healthcare kickback and money laundering conspiracies.  Former True Health Diagnostics LLC CEO Christopher Grottenthaler, former Boston Heart Diagnostics Corporation Susan L. Hertzberg, former Rockdale Hospital d/b/a Little River Healthcare CEO Jeffrey Paul Madison, and others are defendants in a False Claims Act lawsuit captioned United States ex rel. STF, LLC v. True Health Diagnostics, LLC, et al., No. 4:16-cv-547 (E.D. Tex.).  Additionally, 33 doctors and healthcare executives have agreed to pay over $32 million in order to resolve False Claims Act allegations for their involvement in the scheme.  The criminal and civil cases allege that the defendants unlawfully enriched themselves by paying and receiving illegal kickbacks in exchange for laboratory referrals. 

Criminal Cases

U.S. v. Hertzberg, et al

Susan L. Hertzberg, 64, of New York,  Matthew John Theiler, 56, of Mars, Pennsylvania, David Weldon Kraus, 64, Loudon, Tennessee, Jeffrey Paul Parnell, 54, of Tyler, Texas, Thomas Gray Hardaway, 49 of San Antonio, Texas, Laura Spain Howard, 48, of Allen, Texas, Jeffrey Paul Madison, 47, Georgetown, Texas, Todd Dean Cook, 57, Wimauma, Florida, William Todd Hickman, 59, of Lumberton, Texas, Christopher Roland Gonzales, 45, of McKinney, Texas, Ruben Daniel Marioni, 37, of Spring, Texas, Jordan Joseph Perkins, 38, of Conroe, Texas, Elizabeth Ruth Seymour, 39, of Corinth, Texas, Linh Ba Nguyen, 58, of Dallas, Texas, Thuy Ngoc Nguyen, 54, of Dallas, Texas,  Joseph Gil Bolin, 50, of Dallas, Texas, Heriberto Salinas, 62, of Cleburne, Texas, and Hong Davis, 54, of Lewisville, Texas were indicted for conspiracy to commit illegal remunerations in violation of the Anti-Kickback Statute.  The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid, and other federal health care programs.  The defendants were charged for their roles in a conspiracy through which physicians were incentivized to make referrals to critical access hospitals and an affiliated lab in exchange for kickbacks which were disguised as investment returns; and in which marketers were incentivized to order, arrange for, or recommend the ordering of services from critical access hospitals and an affiliated lab in violation of the Anti-Kickback Statute.

Two Texas critical access hospitals, Little River Healthcare (LRH) based in Rockdale, Texas, and Stamford Memorial Hospital based in Stamford, Texas, partnered with Boston Heart Diagnostics (BHD), a clinical laboratory based in Framingham, Massachusetts, that specialized in blood testing.  For a fee, BHD allowed the hospitals to bill their blood tests to insurers as purported hospital outpatient services, with the hospitals charging insurers a much higher rate than BHD could receive as a clinical laboratory.  The hospitals utilized a network of marketers who in turn operated management services organizations (MSOs) that offered investment opportunities to physicians throughout the State of Texas.  In reality, the MSOs were simply a means to facilitate payments to physicians in return for the physicians’ laboratory referrals.  Pursuant to the alleged kickback scheme, the hospitals paid a portion of their laboratory revenues to marketers, who in turn kicked back a portion of those funds to the referring physicians who ordered BHD tests from the hospitals or from BHD directly.  BHD executives and sales force personnel leveraged the MSO kickbacks to gain and increase referrals and, in turn, to increase their revenues, bonuses, and commissions.  Between July 1, 2015, and January 9, 2018, at least $11,256,241.68 in illegal kickback payments were exchanged by the defendants in furtherance of the conspiracy.

On May 24, 2022, Laura Howard pleaded guilty to her involvement in the kickback conspiracy. 

On July 20, 2022, Ruben Marioni pleaded guilty to his involvement in the kickback conspiracy.

U.S. v. Peter Bennett

Peter Bennett, 47, of Houston, Texas, was indicted for conspiracy to commit money laundering, in violation of 18 U.S.C. § 1956(h) for his role in laundering the proceeds of the kickback conspiracy.  To that end, he allegedly created sham trusts and shell corporations through which he laundered the kickback proceeds, and in furtherance of the money laundering conspiracy, Bennett laundered at least $2,724,080.41 in kickback proceeds.

U.S. v. Stephen Kash

Stephen Kash, 48, of Winnie, Texas, was indicted for conspiracy to commit money laundering, in violation of 18 U.S.C. § 1956(h) for his involvement in the money laundering conspiracy.  Kash allegedly had kickback proceeds laundered on his behalf and, at times various times, obtained proceeds from the kickback conspiracy. 

U.S. v. Robert O’Neal

Robert O’Neal, 63, of San Antonio, Texas, was charged by information with conspiracy to commit illegal remunerations, in violation of Anti-Kickback Statute, and with conspiracy to commit money laundering, in violation of 18 U.S.C. § 1956(h).  O’Neal was charged for his involvement in the kickback conspiracy and money laundering conspiracy.  His role in the kickback conspiracy was to arrange for physician referrals and recommend the ordering of services to critical access hospitals and an affiliated lab.  O’Neal also had kickback proceeds laundered on his behalf and, at times various times, obtained proceeds from the kickback conspiracy. 

On January 18, 2022, O’Neal pleaded guilty to his involvement in the kickback conspiracy and the money laundering conspiracy.

The criminal cases were investigated by the Defense Criminal Investigative Services (DCIS), U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), Veteran Affairs, Office of Inspector General (VA-OIG), and the Federal Bureau of Investigation Dallas – Frisco Resident Agency.  They are being prosecuted by Assistant U.S. Attorneys Nathaniel C. Kummerfeld and J. Kevin McClendon.

Civil Cases and Settlements

Boston Heart Diagnostics Corporation, 33 doctors, and healthcare executives have agreed to pay over $32 million to resolve False Claims Act allegations for their involvement in a scheme to pay and receive illegal kickbacks in exchange for laboratory referrals.  Former True Health CEO Christopher Grottenthaler, former Boston Heart CEO Susan L. Hertzberg, former Little River CEO Jeffrey Paul Madison, and others are defendants in a False Claims Act lawsuit captioned United States ex rel. STF, LLC v. True Health Diagnostics, LLC, et al., No. 4:16-cv-547 (E.D. Tex.).  The United States filed an amended complaint in May 2022.

The civil settlements resolve allegations that doctors and healthcare executives violated the Anti-Kickback Statute by receiving thousands of dollars in remuneration from nine MSOs in exchange for ordering laboratory tests from Little River, True Health, and/or Boston Heart.  Little River allegedly funded the remuneration to certain doctors in the form of volume-based commissions paid to independent contractor recruiters, who used MSOs to pay numerous doctors for their referrals.  The MSO payments to the doctors were allegedly disguised as investment returns but in fact were based on, and offered in exchange for, the doctors’ referrals.

The civil settlements are the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Texas and the Civil Division’s Commercial Litigation Branch, Fraud Section, with assistance from HHS-OIG, DCIS, and VA-OIG.  The civil cases are being handled by Assistant U.S. Attorneys James Gillingham, Adrian Garcia, and Betty Young, Senior Trial Counsel Christopher Terranova, and Trial Attorney Gavin Thole.

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

Any patients who believe that they have been contacted as part of a fraudulent telemedicine, clinical laboratory, or DME scheme should call to report this conduct to HHS-OIG at 1-800-HHS-TIPS.

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

Alexander Timia Jones, 38, pleaded guilty on August 19, 2021, to conspiracy to possess with intent to distribute methamphetamine, possession of a firearm during a drug trafficking crime and conspiracy to commit money laundering.  Jones was sentenced to a total of 270 months in federal prison today by U.S. District Judge Michael Truncale.

According to information presented in court, between July 2017 and December 2018, Jones led a drug trafficking conspiracy responsible for distributing over one kilogram of methamphetamine in the Lufkin area.  Jones was in possession of several firearms while illegally distributing methamphetamine.

Jones was indicted by a federal grand jury on July 1, 2020 and charged with drug trafficking and firearms 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.

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

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David Yager, 29, pleaded guilty today in federal court in the Eastern District of Texas to violating a detainee’s civil rights by using excessive force against him. Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division; U.S. Attorney Brit Featherston for the Eastern District of Texas; Assistant Director Luis Quesada of the FBI Criminal Investigative Division; and Special Agent in Charge Matthew DeSarno of the FBI Dallas Field Division made the announcement.

During the plea hearing, Yager admitted that on or about Feb. 28, 2021, while he was acting as a sergeant in the jail at the Van Zandt County Sheriff’s Office, he repeatedly punched a restrained detainee in the chest with a taser, which he also deployed on the detainee. Yager admitted that the detainee was confined to a restraint chair at the time. Yager also admitted that his acts caused bodily injury to the detainee, and that he used force on the detainee despite knowing that there was no legitimate, law enforcement need to use force. Yager admitted that he hit the detainee out of anger.

“Detention officers in correctional settings, especially those in leadership positions, must be held accountable when they violently assault detainees who are in their custody,” said Assistant Attorney General Clarke. “At the time of this assault, the detainee was locked into a restraint chair. When officials inside our jails and prisons betray the great trust placed in them by unlawfully assaulting people in their custody, the Department of Justice will vigorously prosecute them and hold them accountable.”

“Law enforcement officers who violate the law erode confidence in the rule that we hold so dear to our democratic way of life,” said U.S. Attorney Featherston. “Specifically, those officials who violate a citizen’s civil rights will be held accountable for their improper violent actions. We must expect and require officers to act professionally. Simply put, the failure to do so will not be tolerated.”

“The FBI is committed to investigating violations of civil rights, to include the use of excessive force in jails and prisons,” said Assistant Director Quesada. “This case serves as a reminder that any officer who violates the civil rights of detainees will be held accountable.”

With his guilty plea and pursuant to the terms of the plea agreement, the defendant faces a 42-month prison sentence.

A sentencing date will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.

This case was investigated by the FBI Dallas Field Office. It is being prosecuted by Assistant U.S. Attorney Tracey Batson for the Eastern District of Texas and Trial Attorneys Kathryn E. Gilbert and Matthew Tannenbaum of the Justice Department’s Civil Rights Division.

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

Davien Phillip Turner, also known as Davien Phillip Mayo, 44, was named in an indictment returned by a federal grand jury on July 6, 2022, charging him with owning or operating a drone that is not registered and serving or attempting to serve as an airman without an airman’s certificate.

Prisons around the country have faced the problem of individuals using drones to fly over prison complexes and drop contraband items to the prison population.  According to court documents, on May 19, 2022, law enforcement officials in Jefferson County, Texas were alerted that a person was operating a drone on the property of the Federal Correctional Complex in Beaumont.  Law enforcement officials responded and eventually found Turner in the area where the drone was being operated.  Near Turner, officers discovered a DJI Matrice 600 Pro Drone.  Law enforcement officers also discovered several bags near the drone that Turner allegedly was going to drop into the prison complex via the drone.  Inside those bags were tobacco, cell phones, cell phone chargers, various tools, vape pens, and other items.  Those items were to be sold by inmates within the prison.  Under federal law, this type of drone was required to be registered with the Federal Aviation Administration, and Turner had failed to do so.  Furthermore, to operate a drone under these circumstances, a certificate was needed, which Turner also had not obtained. 

If convicted, Turner faces up to three years in federal prison and a fine of up to $250,000.  

This case is being investigated by the FBI, the Bureau of Prisons, the Jefferson County Sheriff’s Office, and the Federal Aviation Administration.  This case is being prosecuted by Assistant U.S. Attorney Russell James.

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

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TYLER, Texas – The U.S. Attorney’s Office is promoting World Elder Abuse Awareness in conjunction with the Department of Justice’s Elder Justice Initiative to help seniors in the Eastern District of Texas avoid falling victim to financial exploitation, announced U.S. Attorney Brit Featherston today.

The U.S. Attorney’s Office is participating in events through the summer to provide educational programming to seniors such as a presentation provided to tenants of the Plaza Tower in downtown Tyler.  Assistant U. S. Attorney Nathaniel Kummerfeld was joined by U.S. Secret Service agents this morning to discuss prevalent fraud schemes targeting seniors and how to avoid them.  Attendees were also provided with tips for recognizing and avoiding scams and resources for reporting. 

“Although we prosecute dozens of scammers each year, there are hundreds, if not thousands more we never know about,” said U.S. Attorney Brit Featherston.  “Scammers are particularly skilled at tricking victims, often causing the victim to be embarrassed when they realize they have been duped and not report the crime.  By educating our seniors we hope to spare them from this heartache.  Preventing this crime is a lot easier than trying to investigate and get back the money!”

In the last few months, similar programs were provided at a local Rotary Club and the Hamptons of Tyler.  Groups or organizations that are interested in securing a speaker for their event should contact Division Chief Mary Ann Cozby at 903-590-1400.

If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311).  This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim, and identifying relevant next steps.  Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis.  Reporting is the first step.  Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses.  The hotline is staffed 10am-6pm Eastern Time, Monday-Friday. English, Spanish, and other languages are available.       

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SHERMAN, Texas – Fifteen additional Texas doctors have agreed to pay a total of $2,831,280 to resolve False Claims Act allegations involving illegal kickbacks in violation of the Anti-Kickback Statute and Stark Law, and to cooperate with the Department’s investigations of and litigation against other parties, announced Eastern District of Texas U.S. Attorney Brit Featherston today.

“These settlements should reinforce the message that the Eastern District of Texas will not tolerate health care providers who seek to enrich themselves through kickback schemes,” said U.S. Attorney Brit Featherston. “We will continue to work with our agency partners to identify those who defraud our taxpayers and we will hold those who have engaged in the schemes responsible.”    

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 Stark Law forbids a hospital or laboratory from billing Medicare for certain services referred by physicians that have a financial relationship with the hospital or laboratory. The Anti-Kickback Statute and the Stark Law are 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.

The settlements announced today resolve allegations that fifteen Texas doctors violated the Anti-Kickback Statute and the Stark Law by receiving thousands of dollars in remuneration from nine management service organizations (MSOs) in exchange for ordering laboratory tests from Rockdale Hospital d/b/a Little River Healthcare (Little River), True Health Diagnostics LLC (True Health), and/or Boston Heart Diagnostics Corporation (Boston Heart). Little River allegedly funded the remuneration to certain doctors, in the form of volume-based commissions paid to independent contractor recruiters, who used MSOs to pay numerous doctors for their referrals. The MSO payments to the doctors were allegedly disguised as investment returns but in fact were based on, and offered in exchange for, the doctors’ referrals. 

• Louis Coates, D.O., of Garland, Texas, agreed to pay $87,694 to settle allegations that from September 26, 2016 to March 14, 2018 he received kickbacks from an MSO, Herculis MG LLC, in return for ordering laboratory tests from Boston Heart.

• Jason DeMattia, M.D., and Candice DeMattia, M.D., both of Tomball, Texas, agreed to pay $316,142 and $207,009, respectively, to settle allegations that from August 1, 2014 to December 31, 2016 they received kickbacks from two MSOs, North Houston MSO Group, Inc. and Tomball Medical Management, Inc., in return for ordering laboratory tests from True Health and Little River.

• Emanuel Paul (“E.P.”) Descant, II, M.D., of Spring, Texas, agreed to pay $256,466 to settle allegations that from January 5, 2015 through February 3, 2018 he received kickbacks from two MSOs, North Houston MSO Group, Inc. and Tomball Medical Management, Inc., in return for ordering laboratory tests from Little River.

• Mitchell Finnie, M.D., of San Antonio, Texas, agreed to pay $582,522 to settle allegations that from June 4, 2015 to July 11, 2017 he received kickbacks from two MSOs, Alpha Rise Health, LLC and Tango Rise Health Solutions LLC, in return for ordering laboratory tests from Boston Heart, True Health, and Little River.

• Mark Le, M.D., of Tomball, Texas, agreed to pay $57,900 to settle allegations that from May 9, 2016 to September 22, 2017 he received kickbacks from two MSOs, North Houston MSO Group, Inc. and Tomball Medical Management, Inc., in return for ordering laboratory tests from True Health and Little River.

• Richard Le, M.D., of Houston, Texas, agreed to pay $41,000 to settle allegations that from September 29, 2016 to August 24, 2017 he received kickbacks from two MSOs, North Houston MSO Group, Inc. and Tomball Medical Management, Inc., in return for ordering laboratory tests from True Health and Little River.

• Robert Jeremy Laningham, M.D., and Rodney Jason Laningham, M.D., both of Conroe, Texas, agreed to pay $470,560 to settle allegations that from August 8, 2015 through July 6, 2016, they received kickbacks from two MSOs, SYNRG Partners LLC and Transparity Associates LP in return for ordering laboratory tests from Boston Heart, True Health, and Little River.

• Andres Mesa, M.D., of Houston, Texas, agreed to pay $45,484 to settle allegations that from May 1, 2016 to January 9, 2018, he received kickbacks from an MSO, Transparity Associates LP, in return for ordering laboratory tests from Boston Heart and Little River.

• Melissa Miskell, D.O., of New Braunfels, Texas, agreed to pay $100,392 to settle allegations that from July 13, 2015 to December 14, 2017, she received kickbacks from an MSO, Alpha Rise Health, LLC, in return for ordering laboratory tests from Boston Heart and Little River.

• Marco Munoz, M.D., of Fort Worth, Texas, agreed to pay $54,280 to settle allegations that from July 7, 2015 to April 6, 2016, he received kickbacks from an MSO, Alpha Rise Health, LLC, in return for ordering laboratory tests from Boston Heart and Little River.

• Kozhaya Sokhon, M.D., of the Woodlands, Texas, agreed to pay $160,456 to settle allegations that from January 16, 2015 to May 18, 2018, he received kickbacks from two MSOs, SYNRG Partners LLC and Transparity Associates LP, in return for ordering laboratory tests from Boston Heart and Little River.

• Annie Varughese, M.D., of the Woodlands, Texas, agreed to pay $213,888 to settle allegations that from September 1, 2015 to November 17, 2017, she received kickbacks from three MSOs, SYNRG Partners LLC, Transparity Associates, LP, and North Houston MSO Group, Inc., in return for ordering laboratory tests from True Health and Little River.

• Paul Worrell, D.O., of Dallas, Texas, agreed to pay $237,487 to settle allegations that from October 9, 2015 to December 31, 2017, he received kickbacks from three MSOs, Ascend MSO of TX LLC, Eridanus MG LLC, and BDS Healthcare, LLC, d/b/a Vybrem Labs, in return for ordering laboratory tests from Boston Heart, True Health, and Little River.

As part of their settlements, the fifteen physicians have agreed to cooperate with the Department of Justice’s investigations of and litigation against other parties involved in the alleged violations of law.

“The Anti-Kickback and Stark Statutes help protect the integrity of federal healthcare programs,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to pursue both individuals and corporations responsible for schemes that violate these important safeguards.”

“This outcome is the result of cooperation amongst law enforcement partners focused on upholding the integrity of federal healthcare programs,” said Miranda L. Bennett of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). “We will continue to pursue physicians engaging in improper financial relationships to ensure patients are receiving quality medical care.”

“Today’s announcement is another step forward by the Department of Defense, Office of Inspector General’s Defense Criminal Investigative Service (DCIS) and our law enforcement partners to protect the integrity of the military’s health care system, commonly known as TRICARE,” said Acting Special Agent in Charge Gregory P. Shilling of the DCIS Southwest Field Office. “We will continue to aggressively investigate and hold those accountable that take advantage of the U.S. Government and American taxpayers.”

“The VA Office of Inspector General actively investigates those in violation of the Stark Law and the Anti-Kickback Statute,” said Special Agent in Charge Jeffrey Breen of the South Central Field Office of the Department of Veterans Affairs Office of Inspector General (VA-OIG). “Today’s civil settlements demonstrate the VA OIG’s ongoing work to hold individuals accountable and protect the integrity of federal healthcare programs.”

Former True Health CEO Christopher Grottenthaler, former Boston Heart CEO Susan Hertzberg, former Little River CEO Jeffrey Madison, and others are defendants in a separate False Claims Act lawsuit in which the United States filed an amended complaint in May 2022. That pending case is captioned United States ex rel. STF, LLC v. True Health Diagnostics, LLC, et al., No. 4:16-cv-547 (E.D. Tex.). If a defendant is found liable for violating the act, the United States may recover three times the amount of its losses plus applicable penalties.

The civil settlements were the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Texas and the Civil Division’s Commercial Litigation Branch, Fraud Section, with assistance from HHS-OIG, DCIS, and VA-OIG. As a result of its efforts, the United States has recovered over $32 million relating to conduct involving Boston Heart, True Health, and Little River, including False Claims Act settlements with thirty-three physicians, two healthcare executives, and one laboratory. This matter and the related matters were handled by Assistant U.S. Attorneys James Gillingham, Adrian Garcia, and Betty Young, Senior Trial Counsel Christopher Terranova, and Trial Attorney Gavin Thole.

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).

The claims resolved by the settlements are allegations only, and there has been no determination of liability.

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Fifteen additional Texas doctors have agreed to pay a total of $2.83 million to resolve False Claims Act allegations involving illegal kickbacks in violation of the Anti-Kickback Statute and Stark Law, and to cooperate with the Department of Justice’s investigations of and litigation against other parties.

“The Anti-Kickback and Stark Statutes help protect the integrity of federal health care programs,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to pursue both individuals and corporations responsible for schemes that violate these important safeguards.”

“These settlements should reinforce the message that the Eastern District of Texas will not tolerate health care providers who seek to enrich themselves through kickback schemes,” said U.S. Attorney Brit Featherston for the Eastern District of Texas. “We will continue to work with our agency partners to identify those who defraud our taxpayers and we will hold those who have engaged in the schemes responsible.”   

“This outcome is the result of cooperation amongst law enforcement partners focused on upholding the integrity of federal health care programs,” said Special Agent in Charge Miranda L. Bennett of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). “We will continue to pursue physicians engaging in improper financial relationships to ensure patients are receiving quality medical care.”

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 Stark Law forbids a hospital or laboratory from billing Medicare for certain services referred by physicians that have a financial relationship with the hospital or laboratory. The Anti-Kickback Statute and the Stark Law are 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.

The settlements announced today resolve allegations that 15 Texas doctors violated the Anti-Kickback Statute and the Stark Law by receiving thousands of dollars in remuneration from nine management service organizations (MSOs) in exchange for ordering laboratory tests from Rockdale Hospital dba Little River Healthcare (Little River), True Health Diagnostics LLC (True Health), and/or Boston Heart Diagnostics Corporation (Boston Heart). Little River allegedly funded the remuneration to certain doctors, in the form of volume-based commissions paid to independent contractor recruiters, who used MSOs to pay numerous doctors for their referrals. The MSO payments to the doctors were allegedly disguised as investment returns but in fact were based on, and offered in exchange for, the doctors’ referrals. 

• Louis Coates, D.O., of Garland, Texas, agreed to pay $87,694 to settle allegations that from Sept. 26, 2016, to March 14, 2018, he received kickbacks from an MSO, Herculis MG LLC, in return for ordering laboratory tests from Boston Heart.
• Jason DeMattia, M.D., and Candice DeMattia, M.D., both of Tomball, Texas, agreed to pay $316,142 and $207,009, respectively, to settle allegations that from Aug.1, 2014, to Dec. 31, 2016, they received kickbacks from two MSOs, North Houston MSO Group Inc. and Tomball Medical Management Inc., in return for ordering laboratory tests from True Health and Little River.
• Emanuel Paul (E.P.) Descant II, M.D., of Spring, Texas, agreed to pay $256,466 to settle allegations that from Jan. 5, 2015, through Feb. 3, 2018, he received kickbacks from two MSOs, North Houston MSO Group Inc. and Tomball Medical Management Inc., in return for ordering laboratory tests from Little River.
• Mitchell Finnie, M.D., of San Antonio, Texas, agreed to pay $582,522 to settle allegations that from June 4, 2015, to July 11, 2017, he received kickbacks from two MSOs, Alpha Rise Health LLC and Tango Rise Health Solutions LLC, in return for ordering laboratory tests from Boston Heart, True Health and Little River.
• Mark Le, M.D., of Tomball, Texas, agreed to pay $57,900 to settle allegations that from May 9, 2016, to Sept. 22, 2017, he received kickbacks from two MSOs, North Houston MSO Group Inc. and Tomball Medical Management Inc., in return for ordering laboratory tests from True Health and Little River.
• Richard Le, M.D., of Houston, Texas, agreed to pay $41,000 to settle allegations that from Sept. 29, 2016, to Aug. 24, 2017, he received kickbacks from two MSOs, North Houston MSO Group Inc. and Tomball Medical Management Inc., in return for ordering laboratory tests from True Health and Little River.
• Robert Jeremy Laningham, M.D., and Rodney Jason Laningham, M.D., both of Conroe, Texas, agreed to pay $470,560 to settle allegations that from Aug. 8, 2015, through July 6, 2016, they received kickbacks from two MSOs, SYNRG Partners LLC and Transparity Associates LP in return for ordering laboratory tests from Boston Heart, True Health and Little River.
• Andres Mesa, M.D., of Houston, Texas, agreed to pay $45,484 to settle allegations that from May 1, 2016, to Jan. 9, 2018, he received kickbacks from an MSO, Transparity Associates LP, in return for ordering laboratory tests from Boston Heart and Little River.
• Melissa Miskell, D.O., of New Braunfels, Texas, agreed to pay $100,392 to settle allegations that from July 13, 2015, to Dec. 14, 2017, she received kickbacks from an MSO, Alpha Rise Health LLC, in return for ordering laboratory tests from Boston Heart and Little River.
• Marco Munoz, M.D., of Fort Worth, Texas, agreed to pay $54,280 to settle allegations that from July 7, 2015, to April 6, 2016, he received kickbacks from an MSO, Alpha Rise Health LLC, in return for ordering laboratory tests from Boston Heart and Little River.
• Kozhaya Sokhon, M.D., of the Woodlands, Texas, agreed to pay $160,456 to settle allegations that from Jan. 16, 2015, to May 18, 2018, he received kickbacks from two MSOs, SYNRG Partners LLC and Transparity Associates LP, in return for ordering laboratory tests from Boston Heart and Little River.
• Annie Varughese, M.D., of the Woodlands, Texas, agreed to pay $213,888 to settle allegations that from Sept. 1, 2015, to Nov. 17, 2017, she received kickbacks from three MSOs, SYNRG Partners LLC, Transparity Associates LP, and North Houston MSO Group Inc., in return for ordering laboratory tests from True Health and Little River.
• Paul Worrell, D.O., of Dallas, Texas, agreed to pay $237,487 to settle allegations that from Oct. 9, 2015 to Dec. 31, 2017 he received kickbacks from three MSOs, Ascend MSO of TX LLC, Eridanus MG LLC and BDS Healthcare LLC, dba Vybrem Labs, in return for ordering laboratory tests from Boston Heart, True Health and Little River.

As part of their settlements, the 15 physicians have agreed to cooperate with the Department of Justice’s investigations of and litigation against other parties involved in the alleged violations of law.

“Today’s announcement is another step forward by the Department of Defense, Office of Inspector General’s Defense Criminal Investigative Service (DCIS) and our law enforcement partners to protect the integrity of the military’s health care system, commonly known as TRICARE,” said Acting Special Agent in Charge Gregory P. Shilling of the DCIS Southwest Field Office. “We will continue to aggressively investigate and hold those accountable that take advantage of the U.S. government and American taxpayers.”

“The VA Office of Inspector General actively investigates those in violation of the Stark Law and the Anti-Kickback Statute,” said Special Agent in Charge Jeffrey Breen of the South Central Field Office of the Department of Veterans Affairs Office of Inspector General (VA-OIG). “Today’s civil settlements demonstrate the VA-OIG’s ongoing work to hold individuals accountable and protect the integrity of federal healthcare programs.”

Former True Health CEO Christopher Grottenthaler, former Boston Heart CEO Susan Hertzberg, former Little River CEO Jeffrey Madison, and others are defendants in a separate False Claims Act lawsuit in which the United States filed an amended complaint in May 2022. That pending case is captioned United States ex rel. STF, LLC v. True Health Diagnostics, LLC, et al., No. 4:16-cv-547 (E.D. Tex.). If a defendant is found liable for violating the act, the United States may recover three times the amount of its losses plus applicable penalties.

The civil settlements were the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the Eastern District of Texas, with assistance from HHS-OIG, DCIS and VA-OIG. As a result of its efforts, the United States has recovered over $32 million relating to conduct involving Boston Heart, True Health and Little River, including False Claims Act settlements with 33 physicians, two health care executives, and one laboratory. This matter and the related matters were handled by attorneys Christopher Terranova and Gavin Thole in the Civil Division’s Commercial Litigation Branch (Fraud Section) and Assistant U.S. Attorneys James Gillingham, Adrian Garcia and Betty Young for the Eastern District of Texas.

The government’s pursuit of these matters illustrates the government’s emphasis on combating health care 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).

The claims resolved by the settlements are allegations only, and there has been no determination of liability.

TYLER, Texas – A Tyler man has pleaded guilty to federal charges in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today. 

Derek Robert Hamm, 38, pleaded guilty to wire fraud, money laundering, violating the Stolen Valor Act, using a fraudulent military discharge certificate, and being a felon in possession of firearms and ammunition.  The Stolen Valor Act of 2013 makes it illegal to fraudulently wear medals, embellish rank, or make false claims of military service to obtain money, employment, property, or some other tangible benefit.  As part of the plea agreement, Hamm agreed to pay restitution of at least $2.3 million and forfeiture of the proceeds of his criminal conduct, including jewelry, automobiles, and cash proceeds in the amount of $1,675,000.

According to court documents, Hamm invented a persona of being a wealthy and successful war hero.  Hamm held himself out to be a former member of the Army Special Forces who had served multiple tours of duty in Iraq, Afghanistan, and other countries.  He claimed to have been awarded a Purple Heart, Silver Star, Bronze Star, and Distinguished Service Cross for his service.  Hamm also represented that he was related to Harold Hamm, the billionaire oilman in Oklahoma, which he claimed gave him access to financial resources and oil industry expertise.  Through this larger-than-life persona, Hamm created an extensive network of friends who introduced him to potential investors.  Those investors believed Hamm’s claims and invested in what they expected to be worthwhile ventures spearheaded by a trustworthy and capable entrepreneur.

In reality, Derek Hamm was nothing of the sort.  Hamm was not a decorated war hero.  He was no oil industry tycoon.  He was not related to Harold Hamm.  He did not spend investors’ funds on the latest oil industry technology or new oil wells.  Within hours of receiving investors’ funds, Hamm spent their money on himself and his family, including expensive jewelry, vehicles, and vacations to expensive resorts on private charter planes.  All the while, Hamm represented to investors that he had invested their money in successful oil industry projects.  Because of the Hamm war hero persona, the investors trusted Hamm even as their invested funds failed to produce any returns.

“Whenever people invent achievements and claim valor for things done by others, they tarnish the legacy and service of those men and women who have made real sacrifices in service to this country,” said U.S. Attorney Brit Featherston.  “That is especially true when someone uses the valor of such service to ultimately steal from people.  Hamm’s repugnant actions are an insult to true American heroes who received real recognition for their real achievements.”

Hamm also pleaded guilty to being a prohibited person in possession of firearms and ammunition.  Hamm was convicted in Smith County in 2020 for theft of property, a state felony.  As a felon, Hamm is prohibited by federal law from owning or possessing firearms or ammunition. According to court documents, Hamm was in possession of dozens of firearms, including several rifles with high-capacity magazines, and ammunition for those firearms.

A federal grand jury returned an indictment charging Hamm with federal violations on January 20, 2022.  He 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.

If you or someone you know has been a victim of Derek Robert Hamm, please contact the Federal Bureau of Investigation at 903-594-3503.  Derek Robert Hamm is also known as D. Wayne Hamm II, Wayne Hamm, D. Wayne H., DW Hamm, and RD Hamm.

This case was prosecuted as part of the Project Safe Neighborhoods Initiative.  Project Safe Neighborhoods is aimed at reducing gun and gang violence; deterring illegal possession of guns, ammunition, and body armor; and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state, and local law enforcement agencies.

This case is being investigated by the Federal Bureau of Investigation’s Tyler Field Office, with assistance from the Tyler Police Department, the Smith County Sheriff’s Office, the Phoenix Arizona Police Department, Smith County Adult Probation, the Texas Railroad Commission-Enforcement Division, Department of Veteran’s Affairs-Office of Inspector General, Texas Comptroller of Public Accounts-Criminal Investigation Division, and the United States Army Special Operations Command. This case is being prosecuted by Assistant U.S. Attorneys Robert Austin Wells and Ryan Locker.

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BONHAM, Texas – The U.S. Attorney’s Office is promoting World Elder Abuse Awareness in conjunction with the Department of Justice’s Elder Justice Initiative to help seniors in the Eastern District of Texas avoid falling victim to financial exploitation, announced U.S. Attorney Brit Featherston today.

The U.S. Attorney’s Office is participating in events through the summer to provide educational programming to seniors such as a presentation provided to residents of the Pecan Place Senior Apartments in Bonham.  Assistant U. S. Attorney Camelia Lopez met with residents this morning to discuss prevalent fraud schemes targeting seniors and how to avoid them.  Residents were also provided with tips for recognizing and avoiding scams and resources for reporting. 

“Although we prosecute dozens of scammers each year, there are hundreds, if not thousands more we never know about,” said U.S. Attorney Brit Featherston.  “Scammers are particularly skilled at tricking victims, often causing the victim to be embarrassed when they realize they have been duped and not report the crime.  By educating our seniors we hope to spare them from this heartache.  Preventing this crime is a lot easier than trying to investigate and get back the money!”

Earlier this year, a similar program was provided in coalition with the Texoma Council of Governments, Area Agency on Aging, at the Texoma Senior Center in Sherman.  Groups or organizations that are interested in securing a speaker for their event should contact AUSA Lopez at the Plano U.S. Attorney’s Office at 972-509-1201.

If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311).  This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim, and identifying relevant next steps.  Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis.  Reporting is the first step.  Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses.  The hotline is staffed 10am-6pm Eastern Time, Monday-Friday. English, Spanish, and other languages are available.        

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PLANO, Texas – A Colombian lawyer has been convicted of federal obstruction violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.

Maritza Claudia Fernanda Lorza Ramirez, 48, was convicted of obstruction of justice and aiding and abetting following a week-long trial before U.S. District Judge Sean D. Jordan. 

A peace agreement signed in 2016 between the Colombian government and members of the Revolutionary Armed Forces of Colombia (FARC) ended a conflict between the two, and guaranteed members of the FARC that they would not be extradited for crimes committed before December 1, 2016, in furtherance of the insurgency.

According to information presented in court, beginning in 2016, Ramirez, a Colombian attorney, informed at least seven defendants indicted in the Eastern District of Texas and multiple defendants indicted in the Middle and Southern Districts of Florida, that she could help them avoid extradition to the United States and that she could corruptly assist them in adding their names to the list of FARC members to avoid extradition to the United States.  As a result, on-going criminal investigations were affected as these defendants would not cooperate with investigators or prosecutors.  In exchange, Ramirez was paid in excess of $3,000,000 USD by the large-scale Colombian drug traffickers.

Ramirez was indicted by a federal grand jury on May 10, 2018.  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.

“Ramirez offered services to Colombian drug traffickers, who were not members of the FARC, promising them they could be fraudulently placed on the FARC list and avoid extradition to and prosecution in the United States,” said U.S. Attorney Brit Featherston.  “Not only did Claudia’s actions pervert the rule of law and the peace process in Colombia, but they also hindered ongoing investigations, facilitating the flow of illegal drugs into the U.S. by protecting dangerous drug traffickers.  We applaud the effort by agents of the DEA and our Colombian partners to bring Ramirez to justice.”

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 Offices from the Dallas Field Division, Miami Field Division, and the Bogota Country Office with assistance from the Criminal Division’s Narcotic and Dangerous Drug Section (NDDS) Judicial Attachés in Bogotá. The Justice Department’s Office of International Affairs (OIA) provided substantial assistance in securing Lorza Ramirez’s arrest and extradition from Colombia.  This case was prosecuted by the U.S. Attorney’s Office in the Eastern District of Texas with special assistance from the U.S. Attorney’s Offices in the Middle and Southern Districts of Florida.

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

Matthew Wayne Fox, 47, pleaded guilty on March 9, 2020 to wire fraud and was sentenced to 33 months in federal prison today by U.S. District Judge Sean D. Jordan. Fox was also ordered to pay restitution in the amount of $862,150.

According to information presented in court, beginning in 2015, Fox formed Wayne Energy, a company that was to specialize in the oil and gas exploration fields.  Fox previously was the CEO of a business named Frisco Exploration, that went out of business.  From March 2015 through October 2016, Fox raised approximately $949,650 from investors to form a joint venture to convert an oil well to a natural gas well in Upshur County, Texas.  Fox solicited the funds through various literature and emails sent to potential investors.

The emails Fox sent contained several misrepresentations about the joint venture such as ownership of the well, the cost of converting the well, the production of a similar well, and actual work done on site.  Further misrepresentations included that Wayne Energy was a licensed operator with the State of Texas Railroad Commission. Following the initial investment Fox continued to send emails with misrepresentations about work done on the site in order to solicit more money.  An investigation by the SEC showed the majority of money raised by investors was used for the Fox family personal use.

The SEC launched an investigation into Fox following complaints about the investments in the natural gas well.  The SEC obtained a judgment in 2018 against Fox for his conduct in soliciting investors.  The SEC referred the case to the Federal Bureau of Investigations, who launched a criminal investigation resulting in the indictment.

This case was investigated by the Federal Bureau of Investigation and the Securities Exchange Commission and prosecuted by Assistant U.S. Attorney William R. Tatum.

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

Charles Robert Knatt, 20, pleaded guilty on August 11, 2021, to carjacking and use of a firearm during a crime of violence and was sentenced to 240 months in federal prison today by U.S. District Judge Marcia A. Crone.

According to court documents, on March 15, 2021, law enforcement officers responded to a carjacking and shooting in Port Arthur where they found a man shot in the arm at his residence.  The victim told officers that as he walked out of his house to go to work, he was approached by an unknown male - later identified as Charles Knatt - who was armed with a gun.  Knatt forced the victim to his knees and pointed a pistol at the victim’s head demanding money and the keys to his truck.  When the victim gave Knatt his keys and wallet, Knatt got in the victim’s truck and backed out of the driveway.  The victim attempted to run inside his house, however his front door was locked and he could not get in due to Knatt stealing his keys. The victim began to franticly ring his doorbell and beat on the door in order to wake his wife and get inside the house, at which point Knatt exited the truck and fired several shots at the victim, striking him one time in the arm.  Security cameras at the victim’s home captured the carjacking and shooting on video.  Three days later, Knatt turned himself in to police after seeing news reports about the carjacking and shooting.  Knatt admitted to law enforcement that he stole the victim’s truck and shot him.  Knatt was indicted by a federal grand jury on May 6, 2021.  

“Make no mistake about it, there are predators out there like this guy,” said U.S. Attorney Brit Featherston.  “The Port Arthur Police and ATF have joined forces to stop violent offenders and we will pursue each one until they are in jail.”   

“Working with our local, state, and federal partners is the most effective way to combat violent crime,” said ATF Special Agent in Charge Fred Milanowski.  “This case sends a very clear message to those using firearms in crime and creating a threat to the public that law enforcement will work together at every level to keep the public safe.”

“I would like to thank United States Attorney Brit Featherston and his staff, Beaumont ATF, the dedicated women and men of the Port Arthur Police Department and citizens of Port Arthur for collectively bring this case to a successful conclusion,” said Port Arthur Police Chief Tim Duriso.  “Hopefully, the conclusion of this senseless and violent crime gives the victim and his family closure, and assures the public, law enforcement is working diligently to ensure their safety.” 

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 Port Arthur Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorney Matthew Quinn.

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

Anthony Terrell Lloyde, 33, pleaded guilty on July 29, 2021 to conspiracy to commit bank fraud and was sentenced to 121 months in federal prison today by U.S. District Judge Amos L. Mazzant.  Lloyde was also ordered to pay restitution in the amount of $1,339,025.37.

According to information presented in court, beginning in January 2013, Lloyde conspired with others in a scheme to use the stolen identities of unsuspecting victims to illegally purchase material goods and services, most often high-value electronics, such as iPhones and iPads, hotel rooms and vehicle rentals.  Though based in New York, participants traveled throughout the United States to cities associated with the victims’ identities to avoid detection of the fraud.  Lloyde was the organizer and leader of the scheme.  He purchased victims’ identifying information via the internet and directed the use of device-making equipment to manufacture fraudulent state identification documents and credit cards.  He recruited conspirators, to whom he provided the fraudulent documents, and directed them to travel to various cities throughout the United States, including cities located in the Eastern District of Texas such as Frisco and Plano.  Once they arrived at their target location, they used the victims’ stolen identification information and forged identification documents to open fraudulent instant credit accounts at retail stores, such as Apple Store and Best Buy, to purchase merchandise.  These stores utilize the credit services of federally insured banks such as Citibank, Barclays Bank Delaware and Synchrony.  Thus, by materially misrepresenting their identities to the retail stores, Lloyde and his coconspirators were able to defraud the banks.

Lloyde typically organized the trips by determining the target cities and stores and by booking and/or purchasing airline tickets on behalf of his coconspirators.  Lloyde and coconspirators typically traveled under their true identities and would often mail the fraudulent identification documents and credit cards to one another in order to avoid traveling with them in their possession. Conspirators used fraudulently obtained credit cards and forged identification documents to rent vehicles to travel during their commission of the offense, and those fraudulently obtained vehicles were often sold to third parties on the black market. As such, the offense involved an organized plan to steal or receive stolen vehicles.  Once conspirators arrived at the target stores, Lloyde and others would actively participate via phone calls and text messages, directing which victims’ identities were to be used and which products were to be purchased. Victims’ identities were often chosen based upon their proximity to the target city and store, making it less likely the fraud would be detected since it was occurring close to where the victims lived.  Some conspirators used victims’ identification and phone numbers to obtain duplicate cell phone subscriber identity modules (SIM cards). Those conspirators would then use the duplicate SIM cards to divert fraud alerts to their own cell phones, which allowed the conspirators to further their criminal conduct by authorizing the fraudulent transactions.  After purchasing items, conspirators shipped the illegally obtained goods to Lloyde in New York, and Lloyde would resell those products. Lloyde parlayed some of the proceeds generated by the criminal enterprise to purchase airline tickets for himself and other conspirators, to pay for hotel accommodations for himself and other conspirators, and to provide money for incidental expenses assumed by conspirators.  In all, the scheme targeted retail stores that provided instant lines of credit the conspirators could exploit to immediately purchase goods. The credit accounts were funded by banks, and those banks, rather than the retail stores, suffered the financial losses. The primary pecuniary victims of the offense include Citibank, Barclays Bank Delaware, Nordstrom, and Synchrony.  Citibank suffered an actual loss of $1,045,406.71. Barclays Bank Delaware reported an actual loss of $154,731.91. Nordstrom reported an actual loss of $71,016.01.  Synchrony reported an actual loss of $67,870.74. As such, the total actual known loss committed by Lloyde and his coconspirators is $1,339,025.37.

This case was investigated by the Department of Homeland Security HSI Dallas, along with HSI Long Island, HSI Atlanta and HSI Salt Lake City field offices; Dallas-Ft. Worth International Airport Department of Public Safety; Plano, Texas Police Department; Port of Portland Police Department; New York State Police; New York Police Department; Massachusetts State Police; Cincinnati-Northern Kentucky Airport Police Department; Orange County, Texas, Sheriff's Office; Aurora, Colorado Police Department; Broomfield, Colorado, Police Department.  This case was prosecuted by Assistant U.S. Attorney Matthew Johnson.

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PLANO, Texas – A Dallas man has been sentenced to 20 years in federal prison for sex trafficking of children in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.

Laderrick Dedemon Smith, also known as “Freeway,” 22, pleaded guilty on August 24, 2021, to sex trafficking of children and was sentenced to 240 months in federal prison by U.S. District Judge Sean D. Jordan on May 26, 2022.

According to information presented in court, in April 2020, HSI and the Arlington Police Department, with the assistance of the Tarrant County Sheriff's Office, rescued a minor victim who had been sex trafficked by Smith, including during the COVID pandemic lockdown. Through investigation, officers learned that Smith had trafficked the minor victim, and others, out of a hotel room in Plano, within the Eastern District of Texas. Smith placed ads on sites with photographs of the minor victims and offered them for sex. Smith communicated with prospective buyers, set rates, and arranged for the commercial sex acts. Smith also installed a tracking device on the minor victim's cell phone so that the minor could not leave the hotel, obtain food, or seek medical treatment without his knowledge.  In sentencing Smith, the district court found that Smith kept the minor victim in his custody, care, and supervisory control, and that Smith unduly influenced the minor victim to engage in commercial sex through fear of bodily injury. The Court ultimately sentenced Smith to a total term of imprisonment of 20 years, to be followed by a term of supervised release of 15 years, during which time Smith will be required to register as a sex offender.

“Protecting children from predators like Smith is one of our top priorities,” said U.S. Attorney Brit Featherston.  “I’m proud of the work our partners at the North Texas Trafficking Task Force do hunting for those who prey on children. He who harms a child will suffer the wrath of law enforcement and will be arrested and prosecuted to the fullest extent of the law.”

“Child sex trafficking is one of the most deviant crimes we investigate in our agency,” said acting Special Agent in Charge Christopher Miller, HSI Dallas. “The work of our law enforcement partners of the North Trafficking Task Force has proven to be invaluable in removing these dangerous predators from our communities, while at the same time providing much needed assistance to those victimized by their perpetrators.”

This case was investigated by Homeland Security Investigations-led North Texas Trafficking Task Force and the Arlington Police Department and prosecuted by Assistant U.S. Attorney Marisa Miller.

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The Justice Department amended its complaint in a laboratory testing fraud case to add six physicians in Texas. The case alleges False Claims Act violations based on patient referrals in violation of the Anti-Kickback Statute and the Stark Law. The amended complaint further alleges that the six physicians caused claims to be improperly billed to federal health care programs for medically unnecessary laboratory testing. 

According to the United States’ complaint, the six physician defendants received thousands of dollars in kickbacks in return for their referrals of laboratory testing. The complaint alleges that laboratories True Health Diagnostics LLC (THD) and Boston Heart Diagnostics Corporation (BHD) conspired with small Texas hospitals, including Rockdale Hospital dba Little River Healthcare (LRH), to pay physicians to induce referrals to the hospitals for laboratory testing, which was then performed by THD or BHD. As alleged in the complaint, the hospitals paid a portion of their laboratory profits to recruiters, who in turn kicked back those funds to the referring physicians. The recruiters allegedly set up companies known as management service organizations (MSOs) to make payments to referring physicians that were disguised as investment returns but were actually based on, and offered in exchange for, the physicians’ referrals. The complaint alleges that laboratory tests resulting from this referral scheme were billed to various federal health care programs, and that the claims not only were tainted by improper inducements but, in many cases, also involved tests that were not reasonable and necessary.

“The Department of Justice is committed to holding accountable health care providers, including physicians, who commit fraud,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Improper financial arrangements involving physicians and laboratories can distort physicians’ medical judgments, waste taxpayer dollars and subject patients to unnecessary testing or other services.”

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 Stark Law forbids a hospital or laboratory from billing Medicare for certain services referred by physicians that have a financial relationship with the hospital or laboratory. The Anti-Kickback Statute and the Stark Law seek to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients.

The United States’ amended complaint alleges that, in addition to the previously named defendants, the following six physicians received kickbacks from MSOs in return for their laboratory testing referrals:

• Doyce Cartrett, Jr., M.D., of Silsbee, Texas, allegedly received over $320,000 from LRH and two MSOs, Ascend MSO of TX LLC (Ascend) and Eridanus MG LLC (Eridanus), in return for his referrals.
• Elizabeth Seymour, M.D., of Corinth, Texas, allegedly received over $280,000 from two MSOs, Ascend and Eridanus, in return for her referrals.
• Emanuel Paul “E.P.” Descant, II, M.D., of Spring, Texas, allegedly received over $125,000 from two MSOs, North Houston MSO and Tomball Medical Management Inc., in return for his referrals.
• Frederick Brown, M.D., of Missouri City, Texas, allegedly received over $190,000 from two MSOs, Ascend and Indus MG LLC (Indus), in return for his referrals.
• Heriberto Salinas, M.D., of Cleburne, Texas, allegedly received over $75,000 from two MSOs, Ascend and Herculis MG LLC (Herculis), in return for his referrals.
• Hong Davis, M.D., of Lewisville, Texas, allegedly received over $70,000 from two MSOs, Ascend and Herculis, in return for her referrals.

“Schemes that funnel health care referrals do not work without the participation of physicians,” said U.S. Attorney Brit Featherston for the Eastern District of Texas. “They are not merely passive players in these elaborate schemes, but an integral part, without which the scheme could not exist. Our office is committed to rooting out health care fraud by pursuing all players involved the scheme, from the laboratories and their leaders to the marketers and the physicians who make it all possible. Naming these physicians in the complaint is evidence of that commitment.”

“Patients deserve reasonable and necessary care from providers without improper motivations,” said Special Agent in Charge Miranda L. Bennett of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “Collaborating with our law enforcement partners, we will continue to investigate and hold accountable physicians accepting payments for referrals.”

“The Department of Defense Office of Inspector General’s Defense Criminal Investigative Service (DCIS) is committed to rooting out fraud schemes that waste taxpayer resources and impact mission readiness,” said Acting Special Agent in Charge Gregory P. Shilling of the DCIS Southwest Field Office. “DCIS will continue to work with our partners to hold those accountable who undermine the integrity of the health care system that supports our nation’s service members, retirees and their families.”

The United States’ amended complaint was filed in connection with a lawsuit originally filed under the qui tam or whistleblower provisions of the False Claims Act by STF LLC, whose members are Felice Gersh, M.D. and Chris Riedel. The United States intervened in the qui tam action in December 2021 and filed a complaint under the False Claims Act in January 2022 against former THD CEO Christopher Grottenthaler, former BHD CEO Susan Hertzberg, former LRH CEO Jeffrey Madison, and others. Under the False Claims Act, a private party can file an action on behalf of the United States and receive a portion of the recovery. The Act permits the United States to intervene in such lawsuits and add claims and defendants, as it has done here. The qui tam case is captioned United States, et al. ex rel. STF, LLC v. True Health Diagnostics, LLC, et al., No. 4:16-cv-547 (E.D. Tex.). If a defendant is found liable for violating the act, the United States may recover three times the amount of its losses plus applicable penalties.

This case is being handled by attorneys Christopher Terranova and Gavin Thole in the Civil Division’s Commercial Litigation Branch (Fraud Section) and Assistant U.S. Attorneys James Gillingham, Adrian Garcia and Betty Young in the U.S. Attorney’s Office for the Eastern District of Texas. Investigative support is being provided by HHS-OIG and DCIS. As a result of its efforts, the United States has already recovered more than $31 million relating to conduct involving BHD, THD and LRH, including False Claims Act settlements with 29 physicians, two health care executives and a laboratory company.

The United States’ pursuit of this lawsuit illustrates the government’s emphasis on combating health care 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 800‑HHS‑TIPS (800-447-8477).   

The claims in the complaint are allegations only, and there has been no determination of liability.

A federal grand jury in the Eastern District of Texas returned an indictment charging a military contractor for rigging bids on public military contracts in Texas and Michigan and defrauding the United States.

According to the indictment, from at least as early as May 2013 through at least April 2018, Aaron Stephens, 52, formed agreements with multiple co-conspirators to rig bids on certain government contracts in order to give the false impression of competition and secure government payments, and to defraud the United States.  As a part of two different schemes, Stephens and his co-conspirators allegedly rigged eight military contracts and received more than $15 million from the government for those contracts. The contracts included work performed for the Red River Army Depot in Texarkana, Texas; the U.S. Army Contracting Command in Warren, Michigan; and the Sierra Army Depot in Herlong, California.

“U.S. taxpayers deserve to know that the government contracting process is not subverted through collusion,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “Bid rigging undermines the competitive process, wastes taxpayer dollars and deprives businesses that follow the rules of fair competition. Investigating and prosecuting this case and others involving government contracting is a top priority for the Department of Justice and all members of the Procurement Collusion Strike Force.”

“Protecting U.S. tax dollars and the government contracting process is very important,” said U.S. Attorney Brit Featherston for the Eastern District of Texas. “The government provides significant economic opportunities for businesses, and the bidding process must be fair for qualified applicants. Any action taken to thwart this fair process will be investigated and prosecuted.”

“This indictment reflects the unrelenting approach and tenacity we employ daily in pursuing individuals who dare to attempt to defraud the federal government and the U.S. Army,” said Special Agent in Charge L. Scott Moreland of the U.S. Army Criminal Investigation Division's Major Procurement Fraud Field Office. “When it comes to government contracting and purchasing, the superbly skilled and highly-trained special agents in our fraud unit use their finely honed investigation skills to combat and uncover fraud, deception, bribery and other criminal acts.”

“Bid rigging subverts the government contracting process and defrauds the American taxpayer,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “The FBI and our law enforcement partners are committed to investigating those who conspire to undermine the principles of fair and free competition.”  

Stephens was charged in the U.S. District Court for the Eastern District of Texas with one count of bid rigging in violation of the Sherman Act and two counts of conspiracy to defraud the United States.

The maximum penalty for conspiracy to restrain trade under the Sherman Act is 10 years in prison and a criminal fine of $ 1 million. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime if either amount is greater than the statutory maximum fine. The maximum penalty for conspiracy to defraud the United States is five years in prison and a fine of twice the amount of the gain or loss associated with the offense. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other relevant factors.

The Antitrust Division’s Washington Criminal II Section is prosecuting the case, which was investigated with the assistance of the U.S. Attorney’s Office for the Eastern District of Texas, the U.S. Army Criminal Investigation Division’s Dallas Fraud Resident Agency, and the FBI’s Dallas Field Office. 

Anyone with information in connection with this investigation should contact the Antitrust Division’s Complaint Center at 888-647-3258, or visit http://www.justice.gov/atr/report-violations.

In November 2019, the Department of Justice created the Procurement Collusion Strike Force (PCSF), a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant and program funding at all levels of government – federal, state and local. To learn more about the PCSF, or to report information on market allocation, price fixing, bid rigging and other anticompetitive conduct related to defense-related spending, go to https://www.justice.gov/procurement-collusion-strike-force.

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

TEXARKANA, Texas – Four Texarkana, Texas men have been arrested on drug trafficking and firearms violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today. 

Deablo Deshon Lewis, a/k/a Pablo Lew, 31; Michael Darnell Peacock, a/k/a Fruit, 37; Terrance Lamar Peacock, a/k/a T, 31; and Justin Marshall Owens, 40, were named in an indictment returned by a federal grand jury on March 10, 2022, charging them with federal drug trafficking and firearms violations. Michael Peacock appeared before U.S. Magistrate Judge Caroline Craven Craven on March 17, 2022; Lewis appeared before U.S. Magistrate Judge Barry Bryant on March 23, 2022; Owens appeared before Judge Craven on March 31, 2022; and Terrance Peacock appeared before Judge Craven on May 17, 2022.

According to the indictment, beginning in November 2018 and continuing through March 2022, Lewis, Michael Peacock, Terrance Peacock, and Owens allegedly conspired with each other and others to distribute fentanyl, methamphetamine, U-47700, and marijuana in the Texarkana area. During that time, they allegedly carried, used, and possessed firearms in connection with their drug trafficking activities. As a result of the drugs these defendants distributed, three individuals died and another sustained serious bodily injury. In total, the defendants are allegedly responsible for distributing $5 million worth of drugs.

“The counterfeit oxycodone pills--sometimes known as ‘blues’ or ‘M30s’--that were distributed in the Texarkana area contain deadly fentanyl,” said U.S. Attorney Brit Featherston. “If you, or someone you know, has experienced an opioid overdose as a result of taking one of these round blue pills--stamped with ‘M’ on one side and ‘30’ on the other--please contact the Texarkana Texas Police Department at 903-798-3116.  Increasingly, we are seeing more street drugs with deadly fentanyl added to them…and it is killing the users.  More people need to be aware of this increasing trend that can kill the recreational drug user.  Simply put, one pill can kill!”

If convicted, the defendants face from 25 years to life in federal prison.

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 Texarkana, Texas, Police Department; Texas Department of Public Safety; the U.S. Drug Enforcement Administration; the U.S. Postal Inspection Service; and the Texarkana, Arkansas, Police Department. This case is being prosecuted by Assistant U.S. Attorneys Jonathan R. Hornok and D. Ryan Locker.

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

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BEAUMONT, Texas – A Mexican national has been extradited to the United States to face drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today. 

Mario Cardenas-Guillen, 57, of Matamoros, Mexico, was indicted by a federal grand jury on June 20, 2012, and charged with conspiracy with intent to distribute five kilograms or more of cocaine.  Cardenas-Guillen was surrendered to the United States on May 17, 2022.  He will make an initial appearance on May 23, 2022, before U.S. Magistrate Judge Zack Hawthorn.   

According to the indictment, beginning in 2000 and continuing through 2012, Cardenas-Guillen is alleged to have conspired with others to possess more than five kilograms of cocaine, which he intended to distribute to others. 

“International sources of illegal drugs continue to poison our communities,” said U.S. Attorney Brit Featherston.  “We will make every effort to combat this scourge, and that includes going to the origin of the drugs in foreign countries and arresting and prosecuting those who seek to make a profit off this blight that adversely affects so many in our society.”

“For decades, the Gulf Cartel has used intimidation and extreme violence to maintain control of its territories in northeast Mexico and smuggle deadly drugs into communities across the United States,” said DEA Administrator Anne Milgram. “The extradition of Mario Cardenas Guillen, the former leader of the Gulf Cartel, should send a clear message to the leaders of drug trafficking organizations around the world that no one is beyond the reach of the DEA and our law enforcement partners.”

If convicted, Cardenas-Guillen faces from 10 years to life in federal prison.

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. Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney Christopher Rapp.

The Justice Department’s Office of International Affairs worked with law enforcement partners in Mexico to secure the arrest and extradition of Cardenas-Guillen to the United States. Special thanks to the Government of Mexico for their help in the capture and extradition of Cardenas-Guillen.

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

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BEAUMONT, Texas – A Port Arthur man has been sentenced to 10 years in federal prison for a firearms violation in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.

Jesus Antonio Ceja, 30, pleaded guilty on August 2, 2021, to being a felon in possession of a firearm and was sentenced to 120 months in federal prison by U.S. District Judge Marcia A. Crone on May 17, 2022.

According to court documents, on Feb. 9, 2020, law enforcement officers observed a vehicle stopped at an intersection in 5200 block of 15th Street in Port Arthur. As the officer approached the vehicle, he saw the driver, later identified as Ceja, with his head down. The officer drove towards the vehicle to see if the driver was in need of assistance, at which time Ceja looked at the officer and accelerated away at a high rate of speed.  As the officer turned around to follow the vehicle, he saw that Ceja had crashed his vehicle into a pole at the nearby intersection of Lewis and Lakeview streets.  Ceja repeatedly reached under the seat and ignored commands to show his hands and exit the vehicle.  After the officer opened the passenger door, Ceja exited the vehicle and crawled on top of it, refusing to come down.  Once other officers arrived, Ceja came down off the car and told officers there was methamphetamine and a firearm in the car.  Further investigation revealed Ceja was a convicted felon having previously been found guilty of felony escape in Jefferson County in 2008.  As a convicted felon, Ceja is prohibited from owning or possessing firearms or ammunition.  Ceja was indicted by a federal grand jury on April 27, 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 Port Arthur Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorney Matthew Quinn.

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PLANO, Texas – Nineteen 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 May 12, 2022, charges the defendants with conspiracy to commit wire fraud.  The following 18 defendants have either been arrested or summoned for appearance before a federal magistrate judge:

Michael Lewayne Hill, a/k/a Tank, 47, of Mineral Wells;

Andrew Charles Moran, 43, of Lewisville;

Peter Keovongphet, a/k/a Lil’ Pete, 34, of Ft. Lauderdale, FL;

Ty Alan Burkhart, 34, of Frisco;

Jason Lawrence Geiger, a/k/a Austin St. John a/k/a the Red Power Ranger, 47, of McKinney;

Eric Reed Marascio, a/k/a Phoenix Marcon, 50, of Allen;

Christopher Lee McElfresh, 43, of Frisco;

Cord Dean Newman, 44, of Homosassa, FL;

Elmer Omar Ayala, 45, of Midlothian;

Gregory Fitzgerald Hatley, Jr., 38, of Allen;

Alexander Eric Cortesano, 52, of Dallas;

Arthur Atik Pongtaratik, 33, of Carrollton;

Miles Justin Urias, 34, of Richardson;

Fabian C. Hernandez, 44, of Lake Alfred, FL;

Daniel Lee Warren, 33, address unknown;

Rajaa Bensellam, 49, of Allen;

Hadi Mohammed Taffal, 50, of Allen; and

Jonathon James Spencer, a/k/a Spence, 33, of Rowlett.  

According to the indictment, the defendants, led by Michael Hill and Andrew Moran, are alleged to have executed a scheme to defraud lenders and the Small Business Administration’s (SBA's) Paycheck Protection Program (PPP).  Hill is alleged to have recruited co-conspirators to use an existing business or create a business to submit applications to obtain PPP funding.  Once enlisted, Moran is alleged to have assisted his co-conspirators with the application paperwork, including fabricating supporting documentation and submitting the application through the online portals.  On the applications, the defendants are alleged to have misrepresented material information such as the true nature of their business, the number of employees, and the amount of payroll.  Based on these material misrepresentations, the SBA and other financial institutions approved and issued loans to the defendants.  Once in receipt of the fraudulently obtained funds, the defendants did not use the money as intended, such as to pay employee salaries, cover fixed debt or utility payments, or continue health care benefits for employees.  Instead, the defendants typically paid Hill and Moran, transferred money to their personal accounts, and spent the funds on various personal purchases.  In other instances, the defendants sent the fraudulently obtained funds to Jonathon Spencer for purported investment in foreign exchange markets.  In total, the defendants are alleged to have fraudulently obtained at least 16 loans and at least $3.5 million.

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

The CARES Act is a federal law enacted on March 29, 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 of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP.  In April 2020, Congress authorized over $300 billion in additional PPP funding.

The PPP allows qualifying small-businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent.  PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities.  The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within eight weeks of receipt and use at least 75 percent of the forgiven amount for payroll. 

This case is being investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigations.  This case is being 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.

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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.

Derrick Rashard Gloude, 24, pleaded guilty on Sep. 23, 2021, to Hobbs Act robbery and brandishing a firearm during a crime of violence and was sentenced to a total of 240 months in federal prison today by U.S. District Judge Marcia A. Crone.

According to court documents, from November 9, 2020 through November 16, 2020, Gloude robbed six businesses and attempted to rob another in Beaumont.  The stores were all engaged in interstate commerce and employed clerks who were engaged in the commercial activities of the stores at the time of the robberies.  The Hobbs Act prohibits actual or attempted robbery affecting interstate commerce.  In each of the robberies, Gloude brandished a purple pistol and pointed it at the clerks when demanding money.

After receiving a CrimeStoppers tip, investigators were able to develop Gloude as a suspect. A review of Gloude’s public Facebook page showed photos of Gloude wearing clothes matching the clothing reported by the clerks in each store.  Additionally, Gloude’s Facebook showed pictures of him brandishing a purple handgun and flashing fans of cash.  The pistol was recovered after Gloude’s arrest and determined to have been reported stolen in Beaumont.

“If you carry or use a gun and commit a felony crime, we will seek the highest punishment we can on you,” said U.S. Attorney Brit Featherston.  “Violent crime, especially those crimes where a firearm is used, is at the top of our priority list.  We, and our state, local and federal law enforcement partners will work tirelessly together to protect our community by arresting and prosecuting violent offenders.”

“This is just another great example of how we can be more effective in law enforcement when we work together,” said Beaumont Police Chief Jimmy Singletary.  “Our relationships with our federal partners are so valuable in larger investigations like this to put our criminals away for an extended length of time. We certainly cherish these relationships.”

“Removing the criminal element that illegally uses firearms to commit violent crime is a top priority of the ATF,” Special Agent in Charge Fred Milanowski said.  “The ATF will continue to work with our law enforcement partners and the communities we serve to remove the criminal elements that negatively impact our communities.”

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 is being investigated by the Beaumont Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorney Matt Quinn.

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SHERMAN, Texas – A federal grand jury has returned an indictment charging a Rossmoor, California, man with federal violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today. 

Jeremy David Hanson, 44, was named in the indictment returned by a federal grand jury on May 11, 2022 in Sherman charging him with interstate transmission of threatening communications.

According to the indictment, on March 3, 2022, Hanson is alleged to have sent a threatening email to the President of the University of North Texas (UNT) in response to an event that happened the day before.  The indictment states that student protests occurred on the UNT campus following the speaking engagement of a political candidate who supported outlawing sexual reassignment surgeries for children. 

“Jeremy Hanson is accused of sending numerous death threats and hate-filled messages related to the LGBTQ community, which the FBI acted swiftly to disrupt,” said FBI Dallas Special Agent in Charge Matthew J. DeSarno.  “These abhorrent threats were intended to incite fear and intimidation and have no place in our society.  The FBI will continue to protect the American people from threats of violence and find justice for victims.”

If convicted, Hanson faces up to five years in federal prison.

This case is being investigated by the Federal Bureau of Investigation’s Dallas Field Office and is being prosecuted by Assistant U.S. Attorney Tracey Batson.

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

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BEAUMONT, Texas — In honor of National Police Week, United States Attorney Brit Featherston will recognize the service and sacrifice of federal, state, local, law enforcement. This year, the week is observed Wednesday, May 11 through Tuesday, May 17, 2022.

“This week, we gather to pay tribute to the law enforcement officers who sacrificed their lives in service to our country,” said Attorney General Garland. “We remember the courage with which they worked and lived. And we recommit ourselves to the mission to which they dedicated their lives. On behalf of a grateful Justice Department and a grateful nation, I extend my sincerest thanks and gratitude to the entire law enforcement community.”

“Without the rule of law, the pillars of Constitution will not stand.  At its most basic human level, the officer on the street is and must be the protector of the people, the one we turn to when danger or wrongs occur,” said U.S. Attorney Brit Featherston.  “Encounters on the street with a police officer is often where the justice system is initiated and where our citizens (victim or accused) begin their journey to protect their life or property from harm.  Today, honoring those in blue who have made the ultimate sacrifice, we are also honoring what they stood for.  They stood for, at its most basic level, that to live in a free country under our Constitution, that society only remains free when the rule of law is enforced.  Those brave men and women, at its core, selflessly died while giving aid to their fellow citizens and their communities.  Their lives and memory give us confidence that our free way of life will continue, and their sacrifice will forever not be in vain.”

In 1962, President Kennedy issued the first proclamation for Peace Officers Memorial Day and National Police Week to remember and honor law enforcement officers for their service and sacrifices.  Peace Officers Memorial Day, which every year falls on May 15, specifically honors law enforcement officers killed or disabled in the line of duty. Based on data submitted to and analyzed by the National Law Enforcement Officer Memorial Fund (NLEOMF), 472 law enforcement officers died nationwide in the line of duty in 2021.  Of that number, 319 succumbed to COVID-19.  Four officers have died in the line of duty in the Eastern District of Texas.

Additionally, according to 2021 statistics reported by the Federal Bureau of Investigation (FBI) through the Law Enforcement Officer Killed and Assaulted (LEOKA) Program, 73 law enforcement officers who died in the line of duty in 2021 were killed as a result of felonious acts, whereas 56 died in accidents.  Deaths resulting from felonious acts increased in 2021, rising more than 58 percent from the previous year.  In 2021, unprovoked attacks[1] were the cause of 24 deaths significantly outpacing all other line of duty deaths resulting from felony acts and reaching the highest annual total in over 30 years of reporting.  Additional LEOKA statistics can be found on FBI’s Crime Data Explorer website for the LEOKA program. 

The names of the 619 fallen officers added this year to the wall at the National Law Enforcement Officer Memorial will be read on Friday, May 13, 2022, during a Candlelight Vigil in Washington, D.C., starting at 8:00 PM EDT. Those who wish to view the vigil live online, can watch on the NLEOMF YouTube channel found at https://www.youtube.com/TheNLEOMF. The schedule of National Police Week events is available on NLEOMF’s website.

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Reference to any specific organization or service(s) offered by an organization is for the information and convenience of the public, and does not constitute endorsement, recommendation, or favoring by the United States Department of Justice.

[1] An unprovoked attack is defined as an attack on an officer not prompted by official contact at the time of the incident between the officer and the offender.  Source:  Federal Bureau of Investigation (FBI) through the Law Enforcement Officer Killed and Assaulted (LEOKA) Program.

TYLER – The U.S. Marshals and the FBI are alerting the public of several nationwide imposter scams involving individuals claiming to be U.S. marshals, court officers, or other law enforcement officials. They are urging people to report the calls their Local FBI office and file a consumer complaint with the Federal Trade Commission, which has the ability to detect patterns of fraud from the information collected and share that data with law enforcement. During the latest series of calls, scammers identifying themselves as “Deputy John Garrison” (the name of the actual U.S. Marshal in the Eastern District of Texas) attempt to collect a fine in lieu of arrest due to a claim of identity theft, failing to report for jury duty, or other offenses. They then tell victims they can avoid arrest by withdrawing cash and transferring it to the government, purchasing a prepaid debit card such as a Green Dot card or gift card and read the card number over the phone to satisfy the fine, or by depositing cash into bitcoin ATMs. Scammers use many tactics to sound and appear credible. In many instances, scammers provide information like badge numbers, names of actual law enforcement officials and federal judges, along with courthouse addresses. They may also spoof their phone numbers to appear on caller IDs as if they are calling from a government agency or the court when they actually are not. If you believe you were a victim of such a scam, you are encouraged to report the incident to your local FBI office and to the FTC. Additionally, The Department of Justice launched the National Elder Fraud Hotline, which provides services to seniors who may be victims of financial fraud. Case managers assist callers with reporting the suspected fraud to relevant agencies and by providing resources and referrals to other appropriate services as needed. The hotline’s toll-free number is 833-FRAUD-11 (833-372-8311). Things to remember:

 

• U.S. MARSHALS WILL NEVER ask for credit/debit card/gift card numbers, wire transfers, or bank routing numbers, or to make bitcoin deposits for any purpose.

• NEVER divulge personal or financial information to unknown callers.

• Report scam phone calls to your local FBI office and to the FTC.

• You can remain anonymous when you report.

• Authenticate the call by calling the clerk of the court’s office of the U.S. District Court in your area and verify the court order given by the caller.

 

 

Additional information about the U.S. Marshals Service can be found at http://www.usmarshals.gov

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America’s First Federal Law Enforcement Agency

 

TEXARKANA, Texas– A Cleveland, Texas man and woman have pleaded guilty to wire fraud violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.

Clifton Pape, 47, and Sally Jung, 59, have each pleaded guilty to wire fraud violations before U.S. Magistrate Judge Caroline Craven.  As part of their plea agreements, Pape and Jung have agreed to forfeit $680,710.31 and pay up to $3,223,870 in restitution.

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.”

“Predators that perpetuated schemes to steal vital funds aimed at mitigating the economic damage to the nation’s small businesses will be brought to justice,” said SBA Inspector General Hannibal Ware. “OIG continues to root out fraud and protect the integrity of SBA’s programs. I want to thank the U.S. Department of Justice and our law enforcement partners for their dedication and pursuit of justice.”

“Clifton Pape and Sally Jung used My Buddy Loans to exploit the Small Business Administration’s Economic Injury Disaster Loan program (EIDL) while also defrauding hundreds of individuals whom they misled,” said Special Agent in Charge William Smarr of the U.S. Secret Service Dallas Field Office. “The Secret Service stands ready with our law enforcement partners, like the SBA Office of Inspector General, to combat pandemic fraud. The Secret Service will continue to aggressively investigate and prosecute those who violate the public trust and exploit federal relief programs for their own personal gain.”

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.

A federal grand jury returned an indictment charging Pape and Jung with federal violations on Feb. 10, 2021.   They each face up to 30 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 U.S. Secret Service and the Small Business Administration-Office of Inspector General and prosecuted by Assistant U.S. Attorney Jonathan R. Hornok.

# # #

TYLER, Texas – Three brothers and another man, all from Carthage, have been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.

Lavara Geray Hinton, 39, pleaded guilty on July 22, 2021; Perry Cornelius Hinton, 42, pleaded guilty on May 6, 2021; Alex Christopher Hinton, 41, pleaded guilty on May 19, 2021; and David Wayne Anderson, 41, pleaded guilty on July 22, 2021--all to conspiring to distribute methamphetamine.  Lavara Hinton was sentenced to 120 months in federal prison, Perry Hinton was sentenced to 64 months in federal prison, Alex Hinton was sentenced to 120 months in federal prison, and David Anderson was sentenced to 120 months in federal prison today by U.S. District Judge J. Campbell Barker.

According to information presented in court, the Hinton brothers, Anderson, and other co-conspirators purchased bulk methamphetamine from various suppliers and distributed it to mid-level dealers and retail customers in the Panola County area.  Lavara Hinton would accept firearms in trade for methamphetamine and would later sell the firearms.  Lavara Hinton sold more than 600 grams of pure methamphetamine and 33 firearms to confidential informants working with law enforcement.  Perry and Alex Hinton assisted Lavara Hinton by coordinating bulk methamphetamine purchases from their suppliers and also sold methamphetamine to their own customer bases.  Anderson purchased methamphetamine from Lavara Hinton for personal use and for further distribution to his own customers.

The Hinton brothers, Anderson, and two others whose cases remain pending were indicted by a federal grand jury on Sep. 17, 2020, and charged with federal drug trafficking and firearms 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.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Drug Enforcement Administration, the Panola County Sheriff's Office, the Gregg County Sheriff's Office, and prosecuted by Assistant U.S. Attorney D. Ryan Locker. 

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SHERMAN, Texas – A Panamanian national has pleaded guilty to drug trafficking violations during his federal trial in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.

Jorge Albeiro Silva-Salazar, 53, pleaded guilty to conspiracy to manufacture and distribute five kilograms or more of cocaine for distribution into the United States and manufacturing and distributing five kilograms or more of cocaine for distribution into the United States.  Silva-Salazar changed his plea to guilty on April 26, 2022, in the middle of the second day of his federal trial, before U.S. District Judge Amos L. Mazzant, III.

According to information presented in court, Silva-Salazar, aka Don Guillermo, is a Panamanian-based cocaine broker who utilized couriers to transport cocaine shipments from Colombia into Panama for further distribution to the United States.  Airplanes, go-fast boats, semi-tractor trailer trucks, and passenger vehicles were used to transport most of the cocaine shipments. 

“The coordination between the Eastern District of Texas and Republic of Panama is a premier example of law enforcement not only crossing borders, but continents, to keep our communities safer,” said U.S. Attorney Brit Featherston.  “We are grateful to the Panamanian prosecutors, law enforcement officers and forensic chemists who work alongside our own federal agents and prosecutors to ensure justice prevails.”

“While thousands of miles away, the cocaine trafficking activity Mr. Silva-Salazar affected the lives of many people living in our East Texas neighborhoods,” said Eduardo A. Chávez, Special Agent in Charge of the DEA Dallas Field Division.  “DEA offices both here in Dallas and in Panama are committed to ensuring justice is served and are continually working with our foreign counterparts to achieve our mutual goals of safety and security for our neighborhoods, whether in Sherman, Texas, or Panama City, Panama.”

A federal grand jury returned an indictment charging Silva-Salazar with federal drug trafficking violations on August 9, 2017.  He faces up to life in federal prison.  The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors.  A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.

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

This case was investigated by the U.S. Drug Enforcement Administration and the Panama National Police and prosecuted by Assistant U.S. Attorney Colleen Bloss.

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TYLER, Texas – A Baton Rouge man has been convicted of federal firearms violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.

Marland Henry Gibson, 52, was convicted of being a felon in possession of a firearm following a two-day trial before U.S. District Judge J. Campbell Barker. 

According to information presented in court, on March 20, 2021, Gibson was stopped for speeding on Interstate-20 in Gregg County.  During the traffic stop, it was determined Gibson had an outstanding warrant for failing to appear in Marion County, Indiana on a charge of unlawful possession of a firearm by a serious violent felon.  Gibson was arrested on the warrant and a subsequent search of the vehicle revealed not only a handgun hidden in a compartment behind the vehicle’s dashboard, but a suitcase in the rear of the vehicle containing the following items:

• a 144 Tactical LLC, model PS 15, 300 Blackout, multi caliber, handgun with magazine;
• six (6) .45 caliber cartridges;
• thirty (30) assorted .223/300 caliber cartridges;
• two (2) extended P-mag magazines containing ammunition;
• twenty-seven (27) .300 caliber cartridges;
• forty (40) .223/300 caliber cartridges;
• a Springfield XD magazine containing ammunition;
• six (6) .45 caliber cartridges;
• a box containing forty-seven (47) .45 caliber, Federal brand, cartridges; and
• a box containing forty-six (46) .45 caliber, Winchester brand, cartridges.

Further investigation revealed Gibson is a convicted felon and prohibited by federal law from owning or possessing firearms or ammunition.

Gibson was indicted by a federal grand jury on June 17, 2021.  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 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 Texas Department of Public Safety and the Gregg County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Jim Noble.

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TEXARKANA, Texas – An Arlington man has been sentenced to federal prison for his role in a health care fraud scheme in the Eastern District of Texas, announced U.S. Attorney Brit Featherston. 

Jason Neil Hughes, 48, pleaded guilty on Sep. 10, 2021, to health care fraud and was sentenced to 14 months in federal prison today by U.S. District Judge Robert W. Schroeder, III.  Hughes was also ordered to pay restitution in the amount of $416,124.68 to private health insurers.

According to information presented in court, Hughes was the owner and operator of ChangePoint Counseling Service, a mental health clinic in Forney, Texas.  Hughes founded ChangePoint in 2013 and sold it in 2019.  Between 2015 and 2019, Hughes carried out a scheme to defraud private health care insurers through the submission of false and fraudulent claims.  Hughes and others incorrectly billed private insurance claims using a Texarkana doctor’s National Provider Identifier (“NPI”) for counseling services that the doctor did not provide.  Although ChangePoint’s counselors had their own NPI numbers that could be used for billing counseling services, ChangePoint—at Hughes’s direction—used the doctor’s NPI to submit claims because the use of the doctor’s NPI resulted in higher payments from insurers.  This billing practice resulted in ChangePoint receiving an average of 100% to 120% additional money paid per service from health insurers.

This case was investigated by the Federal Bureau of Investigation’s Tyler Field Office and prosecuted by Assistant U.S. Attorney Robert Austin Wells.

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TYLER, Texas – A Wartrace, TN, man has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.

John Arthur Fuss, 71, pleaded guilty to conspiracy to commit money laundering today before U.S. Magistrate Judge John D. Love.

According to information presented in court, Fuss was involved in a scheme developed and managed by a co-defendant. The scheme involved call center solicitations of various kinds, including home mortgage modifications, personal loans, payback of Social Security benefits, and IRS demands for payment. Victims were instructed to make payments through various money services businesses, or by mailing payments to specified addresses. Fuss was recruited to pick up payments from money services businesses or receive them in the mail, and then deposit them into accounts as instructed by one of the co-defendants. He also created at least one business so that the co-defendant could set up a bank account to use in the scheme. The overall scheme involved approximately $3.2 million in victims' payments and almost 2000 victims. Fuss admitted to being responsible for the deposit of approximately $1,173,233 in victim proceeds.

Fuss 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.

If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311).  This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim, and identifying relevant next steps.  Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis.  Reporting is the first step.  Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses.  The hotline is staffed 10am-6pm Eastern Time, Monday-Friday. English, Spanish, and other languages are available.   

This case is being investigated by the Internal Revenue Service-Criminal Investigation, HUD-OIG, and Treasury IG – Tax Administration and prosecuted by Assistant U.S. Attorneys Alan R. Jackson and Frank Coan.

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

Fernando Perez-Gomez, 36, was convicted at trial on July 20, 2021, of conspiracy to possess with intent to distribute a kilogram or more of heroin, 50 grams or more of methamphetamine, and five kilograms or more of cocaine.  Perez-Gomez was sentenced to 235 months in federal prison by U.S. District Judge Marcia A. Crone on April 20, 2022.

According to information presented at trial, from at least May 2014 through May 2016, Perez-Gomez was involved in a conspiracy to traffic drugs from the Houston-area through the Eastern District of Texas and to various destinations for distribution through the United States.   The investigation revealed that at least 16 persons were involved in this polydrug conspiracy, which resulted in the seizure of approximately 80 kilograms of cocaine, over four kilograms of methamphetamine, and a kilogram of heroin.  Additionally, $2.5 million in cash was seized as part of the investigation.

“Illegal drugs continue to threaten the country and at home in our communities.,” said U.S. Attorney Brit Featherston.  “Often it is the basis for other violent crime, property crime and, unfortunately, overdose deaths.  We will continue to track, arrest, and prosecute those individuals like Perez-Gomez, who traffic their poison.  We are thankful for the collaboration of law enforcement that worked diligently on this case.”

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, the Houston Police Department, the Pasadena Police Department, and the Texas Department of Public Safety.  This case was prosecuted by Assistant U.S. Jonathan C. Lee.

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TYLER, Texas – A federal grand jury has returned an indictment charging a Grapeland man and woman with federal solicitation of murder violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today. 

Reynaldo Campos, Jr., 44, and Robin Pittman, also known as Robin Hill, 42, were named in an indictment returned by a federal grand jury in Tyler charging them with murder for hire and conspiracy to commit murder for hire; solicitation to commit murder for hire and conspiracy to solicit murder for hire; possession of a firearm in furtherance of a crime of violence; and felon in possession of a firearm. 

According to the indictment, on Feb. 9, 2022, Campos is alleged to have solicited a person he believed to be an associate of a co-conspirator, who was in fact an undercover federal agent, to murder a former associate of Campos.  Campos discussed the intended murder with the agent on multiple occasions over the next several weeks.  On April 8, 2022, Campos and 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 target.  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 and a shotgun as partial payment for the murder of the intended target.

If convicted, the defendants face up to 10 years in federal prison.

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

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

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SHERMAN, Texas – A Leander man has been found guilty of federal fraud and money laundering violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.

James Clark Nix, 73, was found guilty by a jury of conspiracy to commit wire fraud, wire fraud, money laundering, and aiding and abetting.  The verdict was reached today following a four-day trial before U.S. District Judge Amos L. Mazzant.

According to information presented at trial, James Nix and his son, Bradley Nix, used their businesses, AMIG and NECO, to defraud victim investors of at least $6 million, under the false promise of small business investments and high interest returns of up to 10 percent. Once in possession of the fraudulent funds, James Nix used the money for various expenses such as luxury homes, hotels, and vehicles. During the investigation, investigators lawfully seized a Maserati and Land Rover that were tied to James Nix’s fraudulent conduct. The jury convicted James Nix on all counts - conspiracy, wire fraud, and money laundering. 

“This case represents our district’s continued efforts to root out and prosecute those persons who scam and victimize well-meaning investors.  said U.S. Attorney Brit Featherston.  “Although the case was complex and difficult to investigate and prosecute, our investigative partners and prosecution team rose to the occasion.  The excellent investigation and prosecution provided ease to the jury to deliberate only an hour before finding the defendant guilty.”

“Under the guise of an established, professional tax business Mr. Nix solicited investments from individuals and secured their trust. In return, the investors found their 401(k) and bank accounts empty, and little hope in recovering their funds. The defendant’s Ponzi scheme stole a lifetime of financial resources from multiple victims, and turned them into lavish homes, cash and cars for his personal benefit,” said Dallas FBI Special Agent in Charge Matthew J. DeSarno. “The FBI will continue to work with our partners to investigate financially devastating schemes and seek justice for victims of fraud.”

Nix was indicted by a federal grand jury on Nov. 19, 2020.  He 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 was investigated by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation and prosecuted by Assistant U.S. Attorneys from the Eastern District of Texas.

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BEAUMONT, Texas – A federal grand jury in the Eastern District of Texas returned an indictment this week in Beaumont charging seven inmates at U.S. Penitentiary Beaumont, who are members of the violent transnational criminal organization La Mara Salvatrucha, also known as the MS-13, for their involvement in a deadly prison attack on rival gang members on Jan. 31, 2022.  All seven defendants are in federal custody. The case has been assigned to U.S. District Judge Marcia Crone.

U.S. Attorney for the Eastern District of Texas Brit Featherston, along with FBI Houston SAC James Smith, Homeland Security Investigations Houston SAC Mark Dawson, and Joint Task Force Vulcan Director (JTFV) John J. Durham, announced today the charges in the 15-count indictment against the MS-13 members identified below.  The charges in the Indictment relate to the planning and execution of a violent attack orchestrated by members of MS-13 against Mexican Mafia and Sureños associates that resulted in two deaths, two attempted murders, and a nationwide lockdown of all inmates in the Federal Bureau of Prisons (BOP) for almost a week.

“Deterring prison violence remains a priority for the Department,” said Eastern District of Texas U.S. Attorney Brit Featherston.  “Any prisoner who causes physical injury to another, inmate or corrections officer, will be prosecuted to the fullest extent of the law.” 

“Disrupting dangerous plots that can arise from gangs like MS-13 in the federal prison system, as alleged in today’s indictment, is a matter of utmost importance for the FBI and to me personally as a former supervisory special agent for the MS-13 National Gang Task Force Unit in the Criminal Investigative Division at Headquarters,” said FBI Houston SAC James Smith.  “The FBI served as a force multiplier and the lead investigative agency for this case immediately following the murders. In support of this massive investigation, we completed over 100 interviews, conducted over 60 searches, reviewed hours of surveillance footage, and seized countless weapons and contraband. The FBI remains resolute in our commitment to continue working side by side with our law enforcement partners to defeat and deter gang violence anywhere it occurs.”

“Transnational violent gangs are a significant threat to our national security whether they are entrenched within our communities or incarcerated in our correctional facilities,” said Homeland Security Investigations (HSI) Houston Special Agent in Charge Mark Dawson. “This indictment demonstrates our commitment to disrupting and dismantling this threat.”

“Even while incarcerated, MS-13 members remain committed to the organization’s violent ideology and, as alleged in this indictment, continue to engage in extreme acts of murder and attempted murder,” stated Director Durham.  “The Department of Justice and our law enforcement partners will not yield, and we will hold MS-13 members accountable for their crimes, whether in prisons or on the street.”  Director Durham extended his sincere appreciation to all members of JTFV, especially the FBI, HSI and BOP’s National Gang Unit, who spearheaded this investigation.

As alleged in the indictment unsealed today:

MS-13 is a transnational criminal organization composed primarily of immigrants or descendants of immigrants from El Salvador, but also includes members from other countries such as Honduras, Guatemala, and Mexico. Although the gang originated in Los Angeles, California, it quickly spread and is now a national and international criminal organization with an estimated 10,000+ members regularly conducting gang activities in nearly all of the United States, including Texas, California, New York, and in El Salvador, Honduras, Guatemala, and Mexico.

The Mexican Mafia controls large portions of the Hispanic prison population in California and Texas and the federal prison system. MS-13 has had a symbiotic relationship with both the Mexican Mafia and the Sureños, which is a close association of Hispanic gangs that pay tribute to the Mexican Mafia while incarcerated in federal and state prisons in the United States. As alleged in the Indictment, however, that symbiotic relationship recently began to fall apart as MS-13’s leadership in El Salvador, the Ranfla Nacional, sought to exert more control and independence of its own members while incarcerated in prisons within the United States, including using MS-13 command and control structure to enforce their orders, including orders to commit murders, even while in prison.

On Jan. 31, 2022, at USP Beaumont, seven MS-13 members, converged in A-A Housing Unit and attacked multiple Sureños members and one Mexican Mafia associate.  Defendant Rivas-Moreiera began the prison attack when he came up behind Guillermo Riojas and stabbed Riojas twice in the chest.  Riojas fell immediately, and other MS-13 defendants stabbed and kicked Riojas while he lay motionless on the prison floor.  The MS-13 defendants then chased, cornered, beat, and repeatedly stabbed Andrew Pineda, and other Sureños members.  The prison attack lasted approximately three minutes. 

Defendants Rivas-Moreiera, Alfaro-Granado, and Landaverde-Giron are all serving sentences of life imprisonment for their participation in MS-13 and committing murder in aid of racketeering in furtherance of MS-13.  Defendant Ramires is also serving a sentence of 27 years’ imprisonment following his conviction for participating in MS-13 and committing a murder on behalf of the gang.

The Victims:

Riojas died as a result of the prison attack.  He was inflicted with multiple stab wounds to his heart and lung.  Likewise, Pineda died as a result of the prison attack.  He suffered more than 45 distinct stab wounds to his body.  Sureños member 1 was stabbed multiple times and taken to a hospital by emergency services as a result of the prison attack.  Sureños member 2 was also stabbed numerous times.  Both victims ultimately survived the attack by the MS-13 defendants. 

This indictment is the product of coordination between the U.S. Attorney’s Office for the Eastern District of Texas (EDTX) and Joint Task Force Vulcan (JTFV), which was created in August 2019 as a whole-of-government approach to dismantle transnational criminal organizations, such as MS-13. Since its creation, JTFV has successfully increased coordination and collaboration with foreign law enforcement partners, including El Salvador, Mexico, Honduras and Guatemala; designating priority MS-13 programs, cliques and leaders, who have the most impact on the United States, for targeted prosecutions; and coordinating significant MS-13 indictments in U.S. Attorney’s Offices across the country, including the first use of national security charges against MS-13 leaders, such as the Ranfla Nacional, in El Salvador. JTFV has been comprised of members from U.S. Attorney’s Offices across the country, including EDTX; the Eastern District of New York; the Southern District of New York; the District of New Jersey; the Northern District of Ohio; the District of Utah; the Eastern District of Virginia; the District of Massachusetts; the District of Alaska; the Southern District of Florida; the Southern District of California; the District of Nevada; and the District of Columbia, as well as the Department of Justice’s National Security Division and the Criminal Division. In addition, all Department of Justice law enforcement agencies are involved in the effort, including the Federal Bureau of Investigation; the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Marshals Service; and the Bureau of Prisons. In addition, Homeland Security Investigations also plays a critical role in JTFV.

The charges announced today are allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. If convicted, the defendants face a maximum sentence of life in prison, and the defendants are eligible for the death penalty.

This case is being prosecuted by Assistant U.S. Attorney Joe Batte from the U.S. Attorney’s Office for EDTX, Assistant U.S. Attorney Christopher A. Eason for the U.S. Attorney’s Office for EDTX and from JTFV, Assistant U.S. Attorney Jacob Warren for the U.S. Attorney’s Office for the Southern District of New York and from JTFV, and Assistant U.S. Attorney Stewart M. Young for the U.S. Attorney’s Office for the District of Utah and from JTFV. The charges in the indictment were investigated by the FBI and the BOP.

The Defendants:

1. Juan Carlos Rivas-Moreiera, aka “Juan Carlos Moriera,” aka “Stocky”

Age: 41

Place of Birth: El Salvador

United States District Court of Prosecution:  District of Maryland

1. Dimas Alfaro-Granado, aka “Toro”

Age: 39

Place of Birth: El Salvador

United States District Court of Prosecution:  Northern District of Georgia

1. Raul Landaverde-Giron, aka “Decente,” aka “Humilde”

Age: 32

Place of Birth:  El Salvador

United States District Court of Prosecution:  District of Maryland

1. Larry Navarete, aka “El Socio”

Age: 41

Place of Birth:  Nicaragua

United States District Court of Prosecution:  Western District of Arkansas

1. Jorge Parada, aka “Rama”

Age: 42

Place of Birth:  El Salvador

United States District Court of Prosecution:  Eastern District of Virginia

1. Hector Ramires, aka “Cuervo”

Age: 28

Place of Birth:  Honduras

United States District Court of Prosecution:  District of Massachusetts

1. Sergio Sibrian, aka “Anytime”

Age: 29

Place of Birth:  El Salvador

United States District Court of Prosecution:  Central District of California

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TYLER, Texas – An Irving man has been sentenced to federal prison for his role in a cryptocurrency money laundering conspiracy in the Eastern District of Texas, announced U.S. Attorney Brit Featherston.

Deependra Bhusal, 46, pleaded guilty on April 30, 2021, to conspiracy to commit money laundering and was sentenced to 46 months in federal prison today by U.S. District Judge Jeremy D. Kernodle.

According to information presented in court, Bhusal was involved in a multi-year money laundering conspiracy involving the laundering of criminal proceeds derived from various scams.  Bhusal’s role in the money laundering conspiracy was to open bank accounts and mailboxes that were used to receive and transact victim funds, to receive the victim funds, to engage 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 to move the criminal proceeds to foreign co-conspirators.  Bhusal and his co-conspirators routinely exchanged the criminal proceeds for cryptocurrency and directed the cryptocurrency to wallets under the control of their foreign co-conspirators.  In August 2020, Bhusal and his co-conspirators traveled to Longview, Texas, where they attempted to exchange approximately $450,000 in criminal proceeds for Bitcoin.

In the course of the operation, Bhusal was personally responsible for laundering $1,437,358.99 in criminal proceeds.

On March 10, 2022, co-conspirators Lois Boyd, 75, of Amelia Court House, Virginia, and Manik Mehtani, 33, of McLean, Virginia, were named in an indictment returned by a federal grand jury, charging them with a violation of the Travel Act, money laundering, and money laundering conspiracy.

If convicted, Boyd and Mehtani face up to 20 years in federal prison.  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. Attorneys Nathaniel C. Kummerfeld and L. Frank Coan, Jr.

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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.

Luis Roberto Alonzo, 24, pleaded guilty on Oct. 27, 2021, to being a felon in possession of a firearm and was sentenced to 30 months in federal prison today by U.S. District Judge Thad Heartfield. 

According to information presented in court, on April 26, 2021, law enforcement responded to a motel in Groves where it was reported Alonzo refused to leave the property.  After making contact with Alonzo, it was determined that Alonzo had an outstanding warrant.  Officers also discovered a shotgun in the backseat of the vehicle he was seen exiting.  Alonzo is a previously convicted felon and prohibited by federal law from owning or possessing firearms or ammunition.  Alonzo 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, the Groves Police Department and the Port Neches Police Department and prosecuted by Assistant U.S. Attorney Russell James.

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

Leanthony Ray Moses, 45, pleaded guilty on July 28, 2021, to conspiracy to distribute and possess with intent to distribute methamphetamine and was sentenced to 135 months in federal prison today by U.S. District Judge Michael Truncale.

According to information presented in court, on Sep. 17, 2019, Moses was stopped by local law enforcement in Nacogdoches for a traffic violation.  The officer’s canine partner alerted to the presence of drugs in the vehicle during the traffic stop.  A search of the vehicle revealed 2,926 grams of methamphetamine.  Moses was indicted by a federal grand jury on Nov. 20, 2019, and charged with federal drug trafficking violations.

This case was investigated by Homeland Security Investigations and the Nacogdoches Police Department and prosecuted by Assistant U.S. Attorney Donald S. Carter.

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The Justice Department has filed a complaint against two laboratory CEOs, one hospital CEO and other individuals and entities, alleging False Claims Act violations based on patient referrals in violation of the Anti-Kickback Statute and the Stark Law, as well as claims otherwise improperly billed to federal healthcare programs for laboratory testing. 

According to the United States’ complaint, laboratory executives and employees at True Health Diagnostics LLC (THD) and Boston Heart Diagnostics Corporation (BHD) allegedly conspired with small Texas hospitals, including Rockdale Hospital dba Little River Healthcare (LRH), to pay doctors to induce referrals to the hospitals for laboratory testing, which was then performed by BHD or THD. The complaint alleges that the hospitals paid a portion of their laboratory profits to recruiters, who in turn kicked back those funds to the referring doctors. The recruiters allegedly set up companies known as management service organizations (MSOs) to make payments to referring doctors that were disguised as investment returns but were actually based on, and offered in exchange for, the doctors’ referrals. As alleged in the complaint, BHD and THD executives and sales force employees leveraged the MSO kickbacks to doctors to increase referrals and, in turn, their bonuses and commissions. The complaint alleges that laboratory tests resulting from this referral scheme were billed to various federal health care programs, and that the claims not only were tainted by improper inducements but, in many cases, also involved tests that were not reasonable and necessary. In addition, the complaint alleges that, to increase reimbursement, LRH falsely billed the laboratory tests as hospital outpatient services.

“The Department of Justice is committed to holding accountable individuals and entities who commit and profit from healthcare fraud,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to pursue those who enter into unlawful financial arrangements that waste taxpayer dollars, improperly influence healthcare providers’ medical judgments and subject patients to unnecessary testing or other services.”

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 Stark Law forbids a hospital or laboratory from billing Medicare for certain services referred by physicians that have a financial relationship with the hospital or laboratory. The Anti-Kickback Statute and the Stark Law seek to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients.

The United States’ complaint also alleges that various THD employees, including THD’s CEO, participated in schemes to pay other forms of kickbacks, including: (a) processing and handling fees to draw site companies; (b) monthly fees to a top-referring doctor, disguising the payments as consulting fees for participating in THD’s advisory board, even though no such board actually existed at THD; and (c) waiving patient copayments and deductibles meant to ensure that patients share in, and have an interest in controlling, the amounts billed to federal healthcare programs. These kickbacks allegedly were paid to induce referrals to Medicare, Medicaid and TRICARE for laboratory testing, including laboratory tests that were not reasonable and necessary. 

The United States’ complaint names the following defendants:

• Christopher Grottenthaler, of Frisco, Texas, THD’s founder and former CEO
• Susan Hertzberg, of New York, BHD’s former CEO
• Jeffrey “Boomer” Cornwell, of McKinney, Texas, THD’s former Vice President of Sales for the Southwestern Region
• Stephen Kash, of Beaumont, Texas, THD’s former Director of Strategic Accounts and MSO recruiter
• Courtney Love, of Dallas, Texas, former THD Account executive
• Matthew Theiler, of Mars, Pennsylvania, BHD’s former Vice President of Sales
• William Todd Hickman, of Lumberton, Texas, owner and operator of defendants Ascend Professional Management Inc., Ascend Professional Consulting Inc., and BenefitPro Consulting LLC
• Laura Howard, of McKinney, Texas, former BHD Area Sales Manager and MSO recruiter
• Christopher Gonzales, of McKinney, Texas, MSO recruiter
• Jeffrey Madison, of Georgetown, Texas, LRH’s former CEO
• Peggy Borgfeld, of Lexington, Texas, LRH’s former Chief Financial Officer and Chief Operations Officer
• Stanley Jones, of San Antonio, Texas, MSO recruiter and co-owner and operator of defendant LGRB Management Services LLC (LGRB)
• Jeffrey Parnell, of Dallas, Texas, MSO recruiter and co-owner and operator of LGRB
• Thomas Gray Hardaway, of San Antonio, Texas, MSO recruiter and co-owner and operator of LGRB
• Ruben Marioni, of Spring, Texas, MSO recruiter and co-owner and operator of defendant Next Level Healthcare Consultants LLC (Next Level)
• Jordan Perkins, of Conroe, Texas, MSO recruiter and co-owner and operator of Next Level
• Ginny Jacobs, of Magnolia, Texas, MSO recruiter and co-owner and operator of defendants S&G Staffing LLC (S&G) and Jacobs Marketing Inc. (Jacobs Marketing)
• Scott Jacobs, of Magnolia, Texas, MSO recruiter and co-owner and operator of S&G and Jacobs Marketing

“Paying kickbacks to physicians distorts the medical decision-making process, corrupts our healthcare system and increases the cost of healthcare funded by the taxpayer,” said U.S. Attorney Brit Featherston for the Eastern District of Texas. “Laboratories, marketers and physicians cannot immunize their conduct by attempting to disguise the kickbacks as some sort of investment arrangement. Our office is committed to looking through the disguise and putting an end to any arrangement where the purpose is to improperly influence medical decision making through the payment of kickbacks.”  

“When health care providers boost their profits through kickback schemes, they risk compromising the integrity of federal health care programs while increasing health care costs for everyone,” said Special Agent in Charge Miranda L. Bennett of the U.S. Department of Health and Human Services Office of Inspector General. “Working with our law enforcement partners, our agency is committed to thoroughly investigating such allegations of fraud.”

“Today’s outcome is a testament to the dedication and determination of the Department of Defense Office of Inspector General (DoD IG), Defense Criminal Investigative Service (DCIS) and our law enforcement partners to safeguard our military’s healthcare system, known as TRICARE,” said Special Agent in Charge Michael C. Mentavlos of the DCIS Southwest Field Office. “DCIS will continue to coordinate closely with the Department of Justice to hold accountable those that attempt to take advantage of the TRICARE program, defrauding the taxpayer and undermining mission readiness.”

The United States filed its complaint in a lawsuit originally filed under the qui tam or whistleblower provisions of the False Claims Act by STF LLC, whose members are Dr. Felice Gersh M.D. and Chris Riedel.  Under the act, a private party can file an action on behalf of the United States and receive a portion of the recovery. The act permits the United States to intervene in such lawsuits and add claims and defendants, as it has done here. The qui tam case is captioned United States ex rel. STF, LLC v. Christopher Grottenthaler, et al. If a defendant is found liable for violating the act, the United States may recover three times the amount of its losses plus applicable penalties.

The United States’ pursuit of this lawsuit 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 800‑HHS‑TIPS (800-447-8477).   

This case is being handled by the Civil Division’s Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the Eastern District of Texas. Investigative support is being provided by the Department of Health and Human Services’ Office of Inspector General and the Defense Criminal Investigative Service. As a result of its efforts, the United States has already recovered more than $30 million relating to conduct involving BHD, THD and LRH, including False Claims Act settlements with 25 physicians, two healthcare executives and a laboratory company.

This case is being handled by Civil Division Senior Trial Counsel Christopher Terranova, Trial Attorney Gavin Thole and Assistant U.S. Attorneys James Gillingham, Adrian Garcia and Betty Young for the Eastern District of Texas.

The claims in the complaint are allegations only, and there has been no determination of liability.

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

Anthony D. Klein, 47, pleaded guilty to attempting to evade or defeat tax today before U.S. Magistrate Judge John D. Love.

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.

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

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

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

Sobanke Idris Sunday Adereti, 24, pleaded guilty on Oct. 25, 2021, to passport fraud and attempted bank fraud, and was sentenced to 33 months in federal prison today by U.S. District Judge Jeremy D. Kernodle.

According to court documents, in March 2021, Adereti presented a false passport and a falsely procured certified check when trying to open a bank account in Flower Mound, Texas. The check was purchased by a fraud victim who was induced into sending money to Adereti, falsely known as “Robinson Elijah.”  He was likely acting as a money mule to cash the victim’s checks.  When Adereti was arrested, he had additional passports and bank statements in other names in his possession. Investigators determined that Adereti was also connected to scams related to business email compromise fraud and other government program fraud.  Additionally, evidence showed that Adereti was the son of a Nigerian traditional ruler and entered the United States on a visitor’s visa in 2018, which has since expired. 

“Scams to steal money are around every corner,” said U.S. Attorney Brit Featherston.  “Thanks to the keen eye of bank officials, Adereti was apprehended.  Unfortunately, many of these crimes target our vulnerable elder population.  It is up to all of us to share this awareness and look out for our greatest generation.”

A federal grand jury returned an indictment charging Adereti with federal violations on April 7, 2021.

This case is part of the Department of Justice’s Elder Justice Initiative. If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311).  This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim, and identifying relevant next steps.  Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis.  Reporting is the first step.  Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses.  The hotline is staffed 10am-6pm Eastern Time, Monday-Friday. English, Spanish, and other languages are available. 

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

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

This case was investigated by the Diplomatic Security Service for the U.S. Department of State, the Flower Mound Police Department, the U.S. Small Business Administration – Office of Inspector General, the United States Secret Service, with assistance from the Federal Bureau of Investigation and was prosecuted by the United States Attorney’s Office for the Eastern District of Texas.

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

Daniel Dylan Skipworth, 20, pleaded guilty to transporting a minor to engage in sexual activity today before U.S. Magistrate Judge K. Nicole Mitchell.

According to information presented in court, Skipworth admitted that in April 2021, he transported a 13-year-old he met online from the state of Alabama to his residence in Tyler to commit the offense of sexual abuse of a minor.  Skipworth’s conviction is the result of a cooperative effort involving the FBI, Tyler Police Department, and the Smith County District Attorney’s Office, who undertook the investigation after analyzing GPS data associated with the phone of a child who had been reported missing by her foster parents in Alabama.

“Children in our community are safer today than yesterday,” said U.S. Attorney Brit Featherston.  “Parents must be aware that dangerous predators lurk behind computer screens in our homes.  Like protecting our children who play at the park, we too must take precaution to protect our most vulnerable population in the cyber-world.  Law enforcement places protecting children at our highest priority.  To those who harm children, we will find you, arrest you, prosecute you and, seek the harshest punishment for you.”

“No child should ever have to go through this, and we will do all that we can to ensure that vulnerable members of our community are protected from those who seek to do them harm,” said FBI Dallas Special Agent in Charge Matthew J. DeSarno. “The defendant will be held accountable for his egregious actions, and we will remain committed to investigating anyone who exploits children.”

“The Smith County District Attorney’s Office is grateful for the cooperation of federal and local law enforcement to protect society and this child victim, while ensuring that the defendant is held accountable as a convicted sex offender,” said Smith County District Attorney Jacob Putman.

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

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 Tyler Resident Agency, Tyler Police Department and Smith County District Attorney’s Office and prosecuted by Assistant U.S. Attorney Lucas Machicek.

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