Eastern District of Texas

MARSHALL, Texas – A 27-year-old Marshall, Texas man has been sentenced to federal prison for drug trafficking crimes in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today.

Danny Brian Hernandez pleaded guilty on Sep. 14, 2020, to possession with intent to distribute methamphetamine and was sentenced to 204 months in federal prison by U.S. District Judge Rodney Gilstrap on Dec. 7, 2020.             

              According to information presented in court, Hernandez was a member of an organization responsible for importing large quantities of methamphetamine from Mexico and selling it in Marshall, Texas.  The evidence showed that Hernandez sold more than 13 ounces of methamphetamine to a confidential informant on three separate occasions.  Hernandez and eight others were indicted by a federal grand jury on Feb. 19, 2020, and charged with federal drug trafficking violations.

This is an Organized Crime Drug Enforcement Task Force (OCDETF) case and is being investigated by the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Texas Department of Public Safety; the Harrison County Sheriff’s Office; and the Marshall Police Department.  This case is being prosecuted by Assistant U.S. Attorney Lucas Machicek.  OCDETF is the largest anti-crime task force in the country and its mission is to disrupt and dismantle the most significant drug trafficking and transnational criminal organizations that threaten the United States. The prosecutor-led, intelligence-driven, multi-agency task forces leverage the authorities and expertise of federal, state, and local law enforcement.

SHERMAN, Texas – Two individuals have pleaded guilty to conspiracy to obtain information from a protected computer in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today. 

Demetrius Cervantes, 46, of McKinney, Texas, and Amanda Lowry, 40, of Sherman, Texas, pleaded guilty to conspiracy to obtain information from a protected computer on Dec. 3, 2020,  before U.S. Magistrate Judge Christine A. Nowak.  Their co-conspirator, Lydia Henslee, 29, of Denison, Texas, faces additional charges.

Cervantes, Lowry, and Henslee, were named in a federal indictment on Sept. 11, 2019.  The defendants were each charged with conspiracy to obtain information from a protected computer and conspiracy to unlawfully possess and use a means of identification

According to information presented in court, the defendants are alleged to have breached a health care provider’s electronic health record (EHR) system in order to steal protected health information and personally identifiable information belonging to patients.  This stolen information was then “repackaged” in the form of false and fraudulent physician orders and subsequently sold to durable medical equipment (DME) providers and contractors.  Within approximately eight months, the defendants obtained more the $1.4 million in proceeds from the sale of the stolen information.  The proceeds of the offenses were traced, and the following forfeitable assets were identified: a 2019 Land Rover Range Rover Supercharged; a 2019 Dodge Durango SUV; a 2018 Polaris RZR XP4 1000 EPS; a 2019 Can-Am Outlander 450; a 2019 Sea-Doo RXT-X 300 W; a 2019 Sea-Doo RXT-X 300 W; and a 2019 Karavan Sea-Doo Move.

On Nov. 18, 2020, Henslee was charged in a ten-count superseding indictment with one count of conspiracy to unlawfully transfer, possess, and use a means of identification, and nine counts of unlawfully transferring, possessing, and using a means of identification.  If convicted, she faces up to 15 years in federal prison. 

Henslee was also charged in a separate superseding indictment along with Steven Churchill, 34, of Boca Raton, Florida, Samson Solomon, 23, of West Palm Beach, Florida, David Warren, 49, of Boca Raton, Florida, and Daniel Stadtman, 66, of Allen, Texas, with one count of conspiracy to commit illegal remunerations. 

According to the superseding indictment, the defendants are alleged to have conspired to pay and receive kickbacks in exchange for orders from physicians that were subsequently used to obtain payments from federal health care programs.  The conspirators obtained patient information, including protected health information and personally identifiable information, and used the information to create fictitious physician orders.  The conspirators then sold the physicians’ orders to each other and to other DME providers.  Within approximately eight months, the defendants collectively obtained more than $2.9 million in proceeds from the criminal scheme. 

The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by federally funded programs, including Medicare, Medicaid, and TRICARE.  If convicted, the defendants each face up to five years in federal prison.

These cases were investigated by the U.S. Department of Health and Human Services, Office of Inspector General; U.S. Department of the Treasury, Internal Revenue Service, Criminal Investigation; and the U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service.  They are being prosecuted by Assistant U.S. Attorneys Nathaniel C. Kummerfeld and Adrian Garcia and Special Assistant U.S. Attorney Bethany Pickett.             

BEAUMONT, Texas – The U.S. Department of Justice, the FBI, the U.S. Postal Inspection Service, and six other federal law enforcement agencies announced the completion of the third annual Money Mule Initiative, a coordinated operation to disrupt the networks through which transnational fraudsters move the proceeds of their crimes.  Money mules are individuals who assist fraudsters by receiving money from victims of fraud and forwarding it to the fraud organizers, many of whom are located abroad.  Some money mules know they are assisting fraudsters, but others are unaware that their actions enable fraudsters’ efforts to swindle money from consumers, businesses, and government unemployment funds. Europol announced a simultaneous effort, the European Money Mule Action (EMMA) today.

            Over the last two months, U.S. law enforcement agencies took action against over 2,300 money mules, far surpassing last year’s effort, which acted against over 600 money mules. This year, actions occurred in every state in the country.  The initiative announced today targeted money mules involved in a wide range of schemes including lottery fraud, romance scams, government imposter fraud, technical support fraud, business email compromise or CEO fraud, and unemployment insurance fraud.  Many of these schemes target elderly or vulnerable members of society.

            “Money mules fuel fraud against some of America’s most vulnerable populations.

            Without the help of these money mules, many foreign fraud enterprises find it difficult to profit off of U.S. victims,” said Attorney General William P. Barr. “As this initiative demonstrates, the Department of Justice is committed to disrupting money mule networks, taking actions against more money mules this year than ever before, in an effort to cut off the flow of funds from

            American consumers and businesses to transnational criminal organizations.”

            “These money mules are an essential link in these foreign-based criminal schemes,” said Stephen J. Cox, U.S. Attorney for the Eastern District of Texas.  “The assistance of these money mules – both witting and unwitting alike – makes it easy for overseas criminal organizations to move money from victims’ wallets into their own.”

              Eight federal law enforcement agencies participated in this year’s effort.  Led by the Department of Justice’s Consumer Protection Branch, the FBI, and the U.S. Postal Inspection Service, the participating agencies include the Department of Labor Office of Inspector General, Federal Deposit Insurance Corporation Office of Inspector General, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Social Security Administration Office of Inspector General, U.S. Secret Service, and U.S. Treasury Inspector General for Tax Administration.

Some highlights from this year’s efforts are:

• Actions were taken to halt the conduct of approximately 2,300 money mules, spanning 92 federal districts.

 

• Law enforcement served approximately 2,000 money mules with letters warning the money mules that they were facilitating fraud and could face civil or criminal consequences for continuing their actions. Agents conducted over 450 interviews.

 

• On approximately 30 instances, agents seized assets or facilitated the return of victim funds. Among the asset seizures was a 2019 Lamborghini, which was seized as part of an investigation into a business email compromise scheme.

 

• The U.S. Postal Inspection Service filed 14 administrative actions requiring money mules to cease facilitating fraud.

 

• The U.S. Attorney’s Office for the Eastern District of Texas (EDTX), along with the U.S. Secret Service, dismantled a phony Amazon Alexa tech support fraud ring, seizing six websites in the process.  In other cases, EDTX obtained four asset seizures leading to the recovery of nearly $150,000 in ill-gotten proceeds.  Additionally, with the assistance of the FBI and IRS, EDTX identified and disrupted at least 13 money mules through interviews, warning letters, and criminal charges.

 

            The above charges are merely allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

            “The success of the Money Mule Initiative is the culmination of the hard work by and coordination between the FBI and our federal, state, local, and international partners,” said FBI Director Christopher Wray. “This campaign has resulted in hundreds of criminal arrests worldwide and justice for countless victims. Today’s announcement should send a clear message to those engaged in this type of criminal activity: they are not outside the reach of law enforcement, and the FBI and its partners will relentlessly pursue them in order to protect the American people.”

            “The Postal Inspection Service has zero tolerance for fraudsters who use the U.S. Mail to transport funds from scammed victims,” said Chief Postal Inspector Gary Barksdale. “Postal Inspectors use cutting-edge technology to build strong cases and campaigns like those announced today, which make significant progress towards disrupting money mule networks. Postal Inspectors and our law enforcement partners will be relentless in the pursuit of criminal organizations that perpetrate these schemes.”

            The agencies participating in the Money Mule Initiative and community partners are undertaking an outreach campaign to increase awareness of how fraudsters use and recruit money mules. U.S. Attorney’s Offices across the country, through their Elder Justice Coordinators, will be reaching out to their communities to educate the public about money mules. AmeriCorp Seniors (formerly Senior Corps) will be working to increase awareness of how money mules facilitate fraud and how consumers can avoid unwittingly assisting fraud schemes.

            Additionally, the American Bankers Association will be engaging with its members on money mules and the role of financial institutions in addressing the problem. The Department of Justice will also be distributing resources for state and local law enforcement on identifying, disrupting, investigating, and prosecuting money mules.

            To find public education materials, as well as information about how fraudsters use and recruit money mules, please visit www.justice.gov/civil/consumer-protection-branch/money- mule-initiative.

            Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. In January 2020, the department designated “Preventing and Disrupting Transnational Elder Fraud” as an Agency Priority Goal, one of its top four priorities. In March 2020, the department announced the largest elder fraud enforcement action in American history, charging more than 400 defendants in a nationwide elder fraud sweep. The department has also conducted hundreds of trainings and outreach sessions across the country since the passage of the Act.

            The Department’s extensive efforts to combat elder fraud seek to halt the billions of dollars seniors lose each year to fraud schemes, including those perpetrated by transnational criminal organizations. The best method for prevention, however, is sharing information about the various types of elder fraud schemes with relatives, friends, neighbors, and other seniors who can use that information to protect themselves.

            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 seven days a week from 6:00 a.m. to 11:00 p.m. eastern time. English, Spanish and other languages are available.

            The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

BEAUMONT, Texas – A 24-year-old Beaumont, Texas man has been sentenced to federal prison for violent crime violations in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today.

            Tremaurice Arthur Randall pleaded guilty on Aug. 4, 2020, to carjacking and brandishing a firearm in furtherance of a crime of violence and was sentenced to 114 months in federal prison today by U.S. District Judge Marcia Crone. 

            A co-defendant, Thaddiaus Joseph Thomas, 34, of Beaumont, Texas, pleaded guilty to the same charges on Aug. 12, 2020 and is awaiting sentencing.          

            According to information presented in court, on Dec. 21, 2019, Thomas and Randall traveled to the Excellent Carwash located at 5010 Haden Road in Beaumont, Texas, wearing masks, where they approached a man who was sitting in the driver’s seat of his 2003 Dodge Ram pickup truck. Thomas pointed a pistol at the man and Randall ordered him to “give it up” before the two pulled the man out of his truck and threw him to the ground. Thomas then pistol whipped the man in the head and fired one shot toward his feet.  Randall and Thomas then entered the pickup truck and fled.  Thomas and Randall were indicted by a federal grand jury on March 4, 2020 and charged with conspiracy to commit carjacking, carjacking, possession of a firearm during a crime of violence, and possession of a firearm by a prohibited person.

            This case is a part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws.  Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce un violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. 

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

TYLER, Texas -- A 44-year-old Shreveport, Louisiana woman has been indicted for her role in an elder fraud scheme in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox.

Monica Ruiz was named in an indictment returned by a federal grand jury, which charged her with wire fraud.

According to the indictment, Ruiz enlisted a variety of false and fraudulent pretenses, representations, and promises in a scheme to defraud an elderly victim from Bullard, Texas.  Among the various misrepresentations Ruiz made in order to obtain money from the victim were the following:

                - That Ruiz had been in a coma;

                - That Ruiz had brain surgery;

                - That Ruiz was falsely arrested and imprisoned;

                - That Ruiz had bribed a judge and prosecutor;

                - That Ruiz’s son died in a car accident in Pennsylvania;

                - That Ruiz was in a car accident;

                - That Ruiz had a kidney transplant;

                - That Ruiz’s daughter was committed to a mental institution;

                - That Ruiz was incarcerated; and

                - That Ruiz’s grandmother died.

At times, Ruiz impersonated other people in communications with the victim.  At other times, she created and used false personas in communications with the victim.  Over the course of her scheme, Ruiz obtained more than $4.850 million from the victim.

If convicted, Ruiz faces 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.

In October 2017, President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law.  The EAPPA’s purpose is to increase the federal government’s focus on preventing elder abuse and exploitation.  Subsequently, the Department of Justice launched the Elder Justice Initiative (EJI).  Through the EJI, the Department has participated in hundreds of criminal and civil enforcement actions involving misconduct that targeted vulnerable seniors.  This past March, the Department announced the largest elder fraud enforcement action in American history, charging more than 400 defendants in a nationwide sweep.  The Department has likewise conducted hundreds of trainings and outreach sessions across the country.  The EJI website contains useful information, including educational resources about prevalent financial scams so you can guard against them.

In August, the Eastern District of Texas announced plans to develop a new initiative, in partnership with law enforcement, to increase enforcement efforts to combat transnational elder fraud schemes and their extensive networks of associates and money mules who launder the stolen funds.

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 7 days a week from 6:00 a.m. to 11:00 p.m. Eastern Time. English, Spanish, and other languages are available.

This case is being investigated by the U.S. Secret Service with the assistance of the Tyler Police Department and the Louisiana State Police - Gaming Enforcement Division and is being prosecuted by Assistant U.S. Attorney Nathaniel C. Kummerfeld.

              PLANO, Texas –A 48-year-old Allen, Texas man has been indicted on federal wire fraud violations in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox.

              Keith Todd Ashley was named in an indictment returned by a federal grand jury in Sherman, Texas on Nov. 12, 2020, charging him with six counts of wire fraud.  Ashley was arrested on Nov. 13, 2020 and appeared in federal court today for a detention hearing before U.S. Magistrate Judge Kimberly C. Priest Johnson, which he waived.

              According to the indictment, from December 23, 2013 through May 14, 2020, Ashley, as owner and chief executive officer of KBKK, LLC, devised and executed a scheme to defraud investors of approximately $1.1 million.  Specifically, Ashley would solicit money from investors for purported investments that he represented were without risk.  In reality, Ashley was diverting these investment funds for his own use.

              If convicted, Ashley faces up to 20 years in federal prison.  The United States is also seeking forfeiture in the amount of $1.143 million.

              This case is being investigated by the Federal Bureau of Investigation and the Carrollton Police Department.  This case is being prosecuted by Assistant U.S. Attorney Heather Rattan.

              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.

SHERMAN, Texas – A fifth individual has been indicted for conspiring to commit illegal remunerations in violation of the Anti-Kickback Statute in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox.

A federal grand jury, on Nov. 18, 2020, returned a superseding indictment charging Steven Churchill, 34, of Boca Raton, Florida, Samson Solomon, 23, of West Palm Beach, Florida, David Warren, 49, of Boca Raton, Florida, Daniel Stadtman, 66, of Allen, Texas, and Lydia Henslee, 29, of McKinney, Texas, each with one count of conspiracy to commit illegal remunerations. 

According to the superseding indictment, the defendants are alleged to have conspired to pay and receive kickbacks in exchange for physicians’ orders that were used to submit claims for payment to federal health care programs.  The conspirators obtained patient information, including protected health information and personally identifiable information, and used the information to create fictitious physicians’ orders.  The conspirators then sold the physicians’ orders to each other and to other durable medical equipment providers.  Within approximately eight months, the defendants collectively obtained more than $2.9 million in proceeds from the criminal scheme.

The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by federally funded programs, including Medicare, Medicaid, and TRICARE.  If convicted, the defendants each face up to five years in federal prison.

This case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General, U.S. Department of the Treasury, Internal Revenue Service, Criminal Investigation, and the U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service.  It is being prosecuted by Assistant U.S. Attorneys Nathaniel C. Kummerfeld and Adrian Garcia.

It is important to note that a complaint, arrest, or indictment should not be considered as evidence of guilt and that all persons charged with a crime are presumed innocent until proven guilty beyond a reasonable doubt.

 

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BEAUMONT, Texas — A 43-year-old physician practicing in Beaumont has been found guilty of federal health care fraud violations in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today.

              Grigoriy T. Rodonaia, of Port Neches, Texas, was convicted by a jury this afternoon of 12 counts of health care fraud, three counts of aggravated identity theft, one count of making a false statement, and two counts of accepting kickbacks.  The guilty verdict came following a four-day trial before U.S. District Judge Marcia Crone.

              Rodonaia, a physician practicing in Beaumont with Rodonaia Family Medicine and Aesthetics, was indicted on March 18, 2020.  According to information presented in court, beginning in January 2015, Rodonaia participated in a health care fraud scheme by issuing prescriptions for specially compounded scar creams using the names, dates of birth, and Health Insurance Claim Numbers of TRICARE beneficiaries, and caused the prescriptions to be forwarded directly to Memorial Compounding Pharmacy in Houston, Texas.  These prescriptions were issued without consultation with the patient and without the patient’s knowledge.  The prescriptions were billed to the military health care program, TRICARE, by the pharmacy at approximately $9,000 to $13,000 per prescription, with multiple refills authorized per prescription.  Rodanaia issued over 600 prescriptions in the names of approximately 140 beneficiaries in furtherance of this scheme.  Before the scheme could be detected, TRICARE paid approximately $6.7 million in TRICARE funds to Memorial Compounding Pharmacy.  Further, to conceal his criminal activity, Rodonaia created fictitious patient files and records that falsely indicated that he had examined or consulted with those patients, and submitted those false records to the Defense Health Agency in response to an audit.

              Rodonaia additionally violated the Anti-Kickback Statute by requiring Medicare and Medicaid beneficiaries seeking opioid treatment to pay cash for an office visit in excess of the amount which would have been reimbursed by the Medicare and Medicaid programs.

              Rodonaia was taken into custody following his conviction.  He faces up to 10 years in prison for each count of health care fraud and an additional two year consecutive term of imprisonment for each count of aggravated identity theft.  A sentencing date has not been set.

              This case was investigated by the Defense Criminal Investigative Service, the Drug Enforcement Administration, Health and Human Services – Office of Inspector General, and the Texas Medicaid Fraud Control Unit. Assistant U.S. Attorney Robert L. Rawls prosecuted this case.

The Department of Justice announced the expansion of the Criminal Division, Fraud Section’s existing Gulf Coast Health Care Fraud Strike Force to include the Eastern District of Texas. 

The Strike Force is a joint law enforcement effort that brings together the resources and expertise of the Health Care Fraud (HCF) Unit in the Criminal Division’s Fraud Section, the U.S. Attorney’s Offices for the Eastern District of Texas, the Middle District of Louisiana, the Eastern District of Louisiana, and the Southern District of Mississippi, as well as law enforcement partners at the FBI, U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG), U.S. Drug Enforcement Administration (DEA), and other federal and state partners.

“Each year, healthcare fraud costs the American taxpayers tens of billions of dollars,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division.  “The Criminal Division’s Health Care Fraud Strike Forces are a critical tool in the Department of Justice’s efforts to identify, investigate, and prosecute those who defraud our healthcare system.  We are eager to announce this new partnership with the Eastern District of Texas, which will enhance and expand our efforts to prosecute healthcare fraud and protect American taxpayers.”

“The fight against health care fraud is a top priority for the U.S. Attorney’s Office for the Eastern District of Texas,” said U.S. Attorney Stephen J. Cox of the Eastern District of Texas. “We are honored to join the department’s Gulf Coast Strike Force and look forward to working together with them and with our law enforcement partners to protect the people of the Eastern District from fraud and abuse and to bring wrongdoers to justice.”

“The FBI is the primary agency for exposing and investigating health care fraud and we are pleased that the expansion of the Gulf Coast Health Care Fraud Strike Force into the Tyler area will allow us to vigorously pursue the most egregious offenders through coordinated law enforcement operations with our investigative partners,” said Special Agent in Charge Matthew J. DeSarno of the FBI’s Dallas Field Office.

“Health care fraud is a multi-billion dollar criminal enterprise,” said Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office.  “The FBI Houston Division sees significant success when we partner with multiple agencies to combat health care fraud in our communities.  We look forward to expanding these efforts through the Gulf Coast Health Care Fraud Strike Force and continuing to strengthen our partnerships in the Eastern District of Texas.”

“The diversion of prescription pharmaceuticals is a public health epidemic impacting many communities throughout the country.  The communities in the Eastern District of Texas are no different,” said Special Agent in Charge Steven S. Whipple of the DEA Houston Division. “We welcome the specialized prosecutorial resources that the Gulf Coast Strike Force brings to the Eastern District of Texas.” 

“The OIG’s unwavering commitment in working with our law enforcement partners throughout the country on Strike Force Teams has resulted in more than a thousand arrests and recovered millions of taxpayer dollars,” said Special Agent in Charge Miranda Bennett of HHS-OIG.  “OIG looks forward to continuing these important accomplishments through our already dynamic partnerships in the Eastern District of Texas.”

The HCF Unit operates 15 Strike Forces across the United States, in 24 federal districts, including Miami, Tampa, and Orlando, Florida; Los Angeles, California; Detroit, Michigan; Houston, Texas; Brooklyn, New York; the Gulf Coast; Tampa, Florida; Chicago, Illinois; and Dallas, Texas, along with the National Rapid Response Strike Force located in Washington, D.C.  The Strike Forces represent a partnership between the Criminal Division, U.S. Attorney’s Offices, the FBI and HHS-OIG, and other federal and local agency partners.

The Strike Force will be made up of prosecutors and data analysts with the HCF Unit, prosecutors with the U.S. Attorney’s Offices for the Eastern District of Texas, and special agents with the FBI, HHS-OIG and DEA.  In addition, the Gulf Coast Strike Force will work closely with other various federal law enforcement agencies.  The Strike Force will focus its efforts on aggressively investigating and prosecuting cases involving fraud, waste, and abuse within our federal health care programs, and cases involving illegal prescribing and distribution of opioids and other dangerous narcotics.

In September, Acting Assistant Attorney General Rabbitt noted the success of the Strike Force model while announcing a historic nationwide enforcement action involving 345 charged defendants across 51 federal districts, including more than 100 doctors, nurses and other licensed medical professionals.  Five of the defendants were indicted in the Eastern District of Texas.  Altogether, these defendants have been charged with submitting more than $6 billion in false and fraudulent claims to federal health care programs and private insurers, including more than $4.5 billion connected to telemedicine, more than $845 million connected to substance abuse treatment facilities, or “sober homes,” and more than $806 million connected to other health care fraud and illegal opioid distribution schemes across the country.  More information can be obtained at: https://www.justice.gov/usao-edtx/pr/largest-health-care-fraud-and-opioid-enforcement-action-department-justice-history.

Among those charged in the Eastern District were Steven Churchill, 34, of Boca Raton, Florida, Samson Solomon, 22, of West Palm Beach, Florida, David Warren, 49, of Boca Raton, Florida, and Daniel Stadtman, 66, of Allen, Texas.  The defendants are alleged to have conspired to pay and receive kickbacks in exchange for physicians’ orders from purported telemedicine companies.  The physicians’ orders were used to submit claims for payment to federal health care programs.  The conspirators obtained patient information, including protected health information and personally identifiable information, used the information to create fictitious physicians’ orders, and sold the physicians’ order to each other and to other durable medical equipment providers.  Within approximately eight months, the defendants collectively obtained more the $2.9 million in proceeds from the scheme.

In another Eastern District case, Clifford Russell Harris, a 38-year-old registered nurse, pleaded guilty to recklessly endangering Texarkana, Texas, patients by stealing fentanyl.  Harris broke into the secure drug storage at Healthcare Express in Texarkana, Texas, and tampered with vials of fentanyl stored there.  He extracted the fentanyl from the vials and refilled the vials with another liquid.  Harris then returned the vials to the drug stock where they were available for administration to patients.  Harris admitted that he had acted with reckless disregard of the danger to patients and that his actions manifested an extreme indifference to that risk. 

The Strike Force operations are part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.  Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for approximately $19 billion.

The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

BEAUMONT, Texas - U.S. Attorney Stephen Cox of the Eastern District of Texas today announced the expansion of the Criminal Division, Fraud Section’s existing Gulf Coast Health Care Fraud Strike Force to include the Eastern District of Texas.  The Strike Force is a joint law enforcement effort that brings together the resources and expertise of the Health Care Fraud Unit in the Criminal Division’s Fraud Section (HCF Unit), the U.S. Attorney’s Offices for the Eastern District of Texas, the Middle District of Louisiana, the Eastern District of Louisiana, and the Southern District of Mississippi, as well as law enforcement partners at the FBI, U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG), U.S. Drug Enforcement Administration (DEA), and other federal and state partners.

“The fight against health care fraud is a top priority for the U.S. Attorney’s Office for the Eastern District of Texas,” said U.S. Attorney Stephen J. Cox.  “We are honored to join the Department’s Gulf Coast Strike Force and look forward to working together with them and with our law enforcement partners to protect the people of the Eastern District from fraud and abuse and to bring wrongdoers to justice.”

“Each year, healthcare fraud costs the American taxpayers tens of billions of dollars,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division.  “The Criminal Division’s Health Care Fraud Strike Forces are a critical tool in the Department of Justice’s efforts to identify, investigate, and prosecute those who defraud our healthcare system.  We are eager to announce this new partnership with the Eastern District of Texas, which will enhance and expand our efforts to prosecute healthcare fraud and protect American taxpayers.”

“The FBI is the primary agency for exposing and investigating health care fraud and we are pleased that the expansion of the Gulf Coast Health Care Fraud Strike Force into the Tyler area will allow us to vigorously pursue the most egregious offenders through coordinated law enforcement operations with our investigative partners,” said FBI Dallas Special Agent in Charge Matthew J. DeSarno.

“Health care fraud is a multi-billion dollar criminal enterprise,” said FBI Houston Special Agent in Charge Perrye K. Turner. “The FBI Houston Division sees significant success when we partner with multiple agencies to combat health care fraud in our communities. We look forward to expanding these efforts through the Gulf Coast Health Care Fraud Strike Force and continuing to strengthen our partnerships in the Eastern District of Texas.”

“The diversion of prescription pharmaceuticals is a public health epidemic impacting many communities throughout the country. The communities in the Eastern District of Texas are no different,” stated Steven S. Whipple, Special Agent in Charge of the DEA Houston Division. “We welcome the specialized prosecutorial resources that the Gulf Coast Strike Force brings to the Eastern District of Texas.” 

“The OIG’s unwavering commitment in working with our law enforcement partners throughout the country on Strike Force Teams has resulted in more than a thousand arrests and recovered millions of taxpayer dollars,” said Dallas Special Agent in Charge Miranda Bennett. “OIG looks forward to continuing these important accomplishments through our already dynamic partnerships in the Eastern District of Texas.”

The HCF Unit operates 15 Strike Forces across the United States, in 24 federal districts, including Miami, Tampa, and Orlando, Florida; Los Angeles, California; Detroit, Michigan; Houston, Texas; Brooklyn, New York; the Gulf Coast; Tampa, Florida; Chicago, Illinois; and Dallas, Texas, along with the National Rapid Response Strike Force located in Washington, D.C.  The Strike Forces represent a partnership between the Criminal Division, U.S. Attorney’s Offices, the FBI and HHS-OIG, and other federal and local agency partners.

The Strike Force will be made up of prosecutors and data analysts with the HCF Unit, prosecutors with the U.S. Attorney’s Offices for the Eastern District of Texas, and special agents with the FBI, HHS-OIG and DEA.  In addition, the Gulf Coast Strike Force will work closely with other various federal law enforcement agencies.  The Strike Force will focus its efforts on aggressively investigating and prosecuting cases involving fraud, waste, and abuse within our federal health care programs, and cases involving illegal prescribing and distribution of opioids and other dangerous narcotics.

In September, Acting Assistant Attorney General Brian C. Rabbitt noted the success of the Strike Force model while announcing a historic nationwide enforcement action involving 345 charged defendants across 51 federal districts, including more than 100 doctors, nurses and other licensed medical professionals. Five of the defendants were indicted in the Eastern District of Texas.  Altogether, these defendants have been charged with submitting more than $6 billion in false and fraudulent claims to federal health care programs and private insurers, including more than $4.5 billion connected to telemedicine, more than $845 million connected to substance abuse treatment facilities, or “sober homes,” and more than $806 million connected to other health care fraud and illegal opioid distribution schemes across the country.   More information can be obtained at: https://www.justice.gov/usao-edtx/pr/largest-health-care-fraud-and-opioid-enforcement-action-department-justice-history.

Among those charged in the Eastern District were Steven Churchill, 34, of Boca Raton, Florida, Samson Solomon, 22, of West Palm Beach, Florida, David Warren, 49, of Boca Raton, Florida, and Daniel Stadtman, 66, of Allen, Texas.  The defendants are alleged to have conspired to pay and receive kickbacks in exchange for physicians’ orders from purported telemedicine companies.  The physicians’ orders were used to submit claims for payment to federal health care programs.  The conspirators obtained patient information, including protected health information and personally identifiable information, used the information to create fictitious physicians’ orders, and sold the physicians’ order to each other and to other durable medical equipment providers.  Within approximately eight months, the defendants collectively obtained more the $2.9 million in proceeds from the scheme.

In another Eastern District case, Clifford Russell Harris, a 38-year-old registered nurse, pleaded guilty to recklessly endangering Texarkana, Texas, patients by stealing fentanyl.  Harris broke into the secure drug storage at Healthcare Express in Texarkana, Texas, and tampered with vials of fentanyl stored there.  He extracted the fentanyl from the vials and refilled the vials with another liquid.  Harris then returned the vials to the drug stock where they were available for administration to patients. Harris admitted that he had acted with reckless disregard of the danger to patients and that his actions manifested an extreme indifference to that risk. 

The Strike Force operations are part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.  Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for approximately $19 billion.

TEXARKANA, Texas – A 32-year-old Bowie County, Texas, man has been sentenced to prison for distribution of child pornography in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today.

            Troy Dewayne Daniels pleaded guilty on August 6, 2020, to distribution of child pornography and was sentenced to 210 months in federal prison today by U.S. District Judge Robert W. Schroeder III. Judge Schroeder also ordered Daniels to pay restitution to his victims and to register as a sex offender.

            According to information presented in court, in October 2019, Daniels used social media apps to communicate with an undercover law enforcement officer. During the conversation, Daniels described his progress in grooming a female child for sexual exploitation, including stating that he was “hoping” to go “[a]ll the way” with her. During the conversation, Daniel admitted to the undercover officer that he had been looking at pictures and videos of younger girls “for a while.” Daniels then sent the undercover officer an image of child pornography claiming that the prepubescent female child depicted looked like the child he had been grooming. Daniels did so in exchange for nonpornographic images of the undercover officer’s (fictional) daughter. Several days later, Daniels reached out to the undercover officer and asked if he could “play” with the officer’s (fictional) daughter on Snapchat. In November 2019, law enforcement officers executed a search warrant at Daniels’s home. Inside, officers found electronic devices containing more than 600 images of child pornography. The images found depicted prepubescent minors, sadistic or masochistic abuse or other depictions of violence, and depictions of the sexual exploitation of infants and toddlers.

            This case was prosecuted 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 https://www.justice.gov/psc.

            This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Jonathan R. Hornok.

MARSHALL, Texas – A 50-year-old Cass County, Texas man has been sentenced for a federal drug violation in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today.

Bryan Lee Simmons pleaded guilty on Sep. 14, 2020, to conspiring to distribute methamphetamine and was sentenced to 48 months in federal prison today by U.S. District Judge Rodney Gilstrap.  Simmons also agreed not to engage in the practice of law for at least three years thereafter.

According to information presented in court, beginning in July 2019 and continuing through August 2019, Simmons agreed with others to distribute methamphetamine in the Cass County Jail. Specifically, on August 29, 2019, he entered the Cass County Jail under the guise of meeting with a client. When Simmons entered the jail, he had methamphetamine hidden on his body, which he intended to distribute to an inmate.  Simmons was also armed with a Colt MK IV .45 caliber pistol when he drove to the jail with the methamphetamine.  Simmons later admitted in open court that he had smuggled drugs into the Cass County Jail on at least two prior occasions.

This case was investigated by the Texas Department of Public Safety, Texas Rangers Division, with assistance from the Cass County, Texas, District Attorney’s Office and the Cass County, Texas, Sheriff’s Office. The case was prosecuted by Assistant U.S. Attorney Jonathan R. Hornok.

SHERMAN, Texas – The United States Attorney for the Eastern District of Texas, Stephen J. Cox, announced today the results of two Organized Crime Drug Enforcement Task Force (OCDETF) operations targeting international drug and firearm trafficking between Mexico and Texas.  Operations Trap Mansion and Two Birds and One Stone were a sustained state-wide effort of numerous federal, state, and local law enforcement agencies from throughout Texas spanning from October of 2018 to June of 2020.  

Operations Trap Mansion and Two Birds One Stone targeted several large Sinaloa and Jalisco New Generation Cartel (CJNG) drug trafficking cells located in the Dallas, Texas area.  These cartel cells would also purchase quantities of firearms which they would smuggle back to Mexico along with bulk U.S. currency that the Sinaloa Cartel and CJNG would use to conduct acts of violence, kidnappings and extortions in Mexico.  Trap Mansion and Two Birds One Stone specifically aimed to interdict trailers loaded with quantities of illegal drugs imported from Mexico across the Texas/Mexico border, and the seizure of firearms smuggled to Mexico from Texas.

The agencies’ efforts resulted in the indictment of 96 defendants in federal court for charges related to drug trafficking, continuing criminal enterprise, unlawful possession of firearms, using firearms in furtherance of drug trafficking, money laundering and other federal criminal violations.  Further, during these operations law enforcement seized 49 firearms, of which, several were AR-15 style rifles and multiple short-barreled weapons that were not registered as required by the National Firearms Act, stolen from local Texans, or otherwise illegally possessed.  Law enforcement also seized approximately 511.9 kilograms of methamphetamine, 40 kilograms of cocaine, 19.3 kilograms of heroin, 67 kilograms of marijuana, 19 kilograms of controlled pharmaceuticals, 800 grams of fentanyl, and approximately $6.6 million in assets.

U.S. Attorney Cox stated: “Today’s announcement of the results of Operations Trap Mansion and Two Birds One Stone represents the pinnacle of sustained multi-agency cooperation focused on the dual threat of narcotics and firearms trafficking.  We will continue to collaborate with all of our law enforcement partners to stem the flood of deadly drugs and illegal firearms, and to punish those who seek to profit from trafficking contraband.” 

U.S. Attorney Cox commended the investigative efforts of, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Internal Revenue Service, Flower Mound Police Department, Rockwall County Sheriff’s Office, and the Lewisville Police Department.  Multiple local police departments and sheriff’s offices throughout the state assisted throughout the operation.       

“Criminals cannot hide.  While these individuals may have enjoyed a lavish lifestyle brought on the backs of those struggling with addiction, these operations send a clear message that the story only ends with confiscated drugs, assets and justice served,” said Special Agent in Charge Eduardo Chavez of the DEA Dallas Field Division.  “I am especially proud of our law enforcement partners that leverage subject-matter expertise to arrest and prosecute over 90 individuals whose actions have negatively impacted so many lives.  DEA Dallas will continue to do our part to make our neighborhoods throughout the Eastern District of Texas safer for all our families.”

These operations were part of the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.  Prosecutions arising from these operations are part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws.  Initiated by the Attorney General in the fall of 2019, Project Guardian enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting firearm use and possession crimes; prioritizes prosecuting persons who make false statements when attempting to obtain firearms; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives concerning persons who attempt to obtain firearms illegally; coordinates responses to persons prevented from obtaining firearms for mental health reasons; and ensures the use of modern intelligence tools and technology to focus on the criminals posing the greatest threat to our communities. 

 

 

PLANO, Texas – A 45 year-old Texas woman has pleaded guilty to tax evasion in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today.

Chelsea Jolynn Tucker pleaded guilty to tax evasion before U.S. Magistrate Judge Kimberly C. Priest Johnson on Nov. 3, 2020. 

According to public court records, from approximately 1997 to 2016, Tucker was employed by a staffing and contract services company located in Addison, Texas.  In her role with the company, Tucker had various financial responsibilities, including administering payroll, preparing W-2 Forms, making employment tax deposits, paying business expenses, and monitoring the company’s tax obligations using QuickBooks and TaxGuard.

Between approximately 2012 and 2017, Tucker knowingly and willfully misappropriated and embezzled funds from the company in multiple ways.  For instance, she (1) paid herself as both an employee and a vendor; (2) issued herself unauthorized bonuses; (3) issued herself fraudulent expense reimbursements; (4) used a corporate credit card for personal purchases; (5) used company funds to pay personal credit cards; and (6) issued company checks to a former employee.

Tucker also willfully attempted to evade her income tax obligations by preparing false and fraudulent W-2 Forms, which substantially underreported the income owed to the Internal Revenue Service.  In addition, Tucker failed to pay the company’s employment taxes, which she had a duty to both truthfully account for and pay. As a result of Tucker’s criminal conduct, the amount still owed to the Internal Revenue Service totals approximately $779,664.

Under the federal statute, Tucker faces up to 5 years in federal prison at sentencing and a $100,000 fine.  The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentences will be determined by the court based on the advisory sentencing guidelines and other statutory factors.  Sentencing hearings will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.

This case was investigated by the Internal Revenue Service-Criminal Investigation and prosecuted by Assistant U.S. Attorney Anand Varadarajan.

              

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PLANO, Texas – A Collin County couple have been sentenced for their involvement in a heroin overdose death in the Eastern District of Texas announced U.S. Attorney Stephen J. Cox today.               

Conner Richard Schaeffer, 28, and Megan Deshane Daniel, 26, both of Frisco, pleaded guilty earlier this year to conspiracy to distribute and possess with intent to distribute heroin.  Schaeffer was sentenced to 240 months in federal prison by U.S. District Judge Sean Jordan on Oct. 29, 2020.  Daniel was also sentenced on Oct. 29, 2020 to 180 months in federal prison.

According to information presented in court, beginning in August 2018, Schaeffer and Daniel conspired to distribute heroin in the Collin County area, and their conspiracy resulted in the death of an individual on Oct. 28, 2018, at a McKinney hospital.

The investigation established that “E.C.” and the overdose victim, “P.C.,” had visited Daniel and her boyfriend Schaeffer at a residence in Frisco, Texas. At the time, Daniel and Schaeffer were engaged in a conspiracy to distribute heroin and other narcotics from the residence.  At the home, Daniel injected both P.C. and E.C. with heroin at their request and in the presence of Schaeffer.  According to witnesses, P.C. immediately began showing signs of distress consistent with an overdose. Instead of calling 911, the parties took P.C. to the hospital on their own.  At the hospital, staff performed CPR on P.C., but their efforts to revive P.C. were unsuccessful and P.C. was pronounced dead shortly thereafter.  Further evidence showed that Schaeffer and Daniel had attempted to hide their role in P.C.’s death by deleting text messages and by urging E.C. not to tell the truth about what happened.

This case was investigated by the Frisco Police Department, McKinney Police Department, and the Collin County Medical Examiner’s Office and prosecuted by Assistant U.S. Attorney Matthew T. Johnson.

TYLER, Texas – A 41-year-old Wills Point, Texas man has been sentenced for federal drug trafficking crimes in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today.

Rickey James Howard pleaded guilty on Jan. 9, 2020, to conspiracy to possess with intent to distribute methamphetamine and was sentenced to 142 months in federal prison by U.S. District Judge Jeremy D. Kernodle on Oct. 27, 2020.  Judge Kernodle also ordered an $8,000 money judgment against Howard.           

            According to information presented in court, on August 2, 2018, in Van Zandt County, Texas, a co-conspirator sold approximately 10.4 grams of methamphetamine during a controlled purchase, using methamphetamine that was stored in a residence Howard shared with the co-conspirator and that Howard knew was stored in the residence.  On August 28, 2018, Howard possessed, at his residence in Van Zandt County, Texas, approximately 135 grams of a mixture or substance containing methamphetamine.  He possessed the methamphetamine for the purpose of distribution to others. 

Howard admitted that between January 2018 and September 2019, he was engaged in a conspiracy with others to obtain and distribute methamphetamine.  He also admitted that he was directly responsible for the possession with intent to distribute at least 500 grams of methamphetamine.  Howard also agreed to a money judgment forfeiture of $8,000, representing proceeds received by Howard from his offense.

            This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Van Zandt County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Alan Jackson.

 

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TEXARKANA, Texas – A 38-year-old Bowie County man has been sentenced to federal prison for federal violations in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today.

Clifford Russell Harris pleaded guilty on June 16, 2020, to tampering with a consumer product and was sentenced to 24 months in federal prison by U.S. District Judge Robert W. Schroeder III on Oct. 22, 2020.

According to information presented in court, Harris, who was a registered nurse at the time, broke into the secure drug storage area at Healthcare Express in Texarkana, Texas, and tampered with vials of fentanyl stored there. Specifically, Harris extracted the fentanyl from the vials and refilled the vials with another liquid. Harris then returned the vials to the drug stock where they were available for administration to patients.  Because the vials were labeled as fentanyl but did not contain fentanyl, Harris placed patients in danger of death or bodily injury. Harris admitted that he had acted with reckless disregard of the danger to patients and that his actions manifested an extreme indifference to that risk.  In the five months leading to his fentanyl theft, Harris stole 600 vials of morphine and Demerol from Healthcare Express where he was entrusted with the receipt and storage of those controlled substances.

This case was investigated by the Texarkana, Texas, Police Department’s Special Investigations Unit with assistance from the Drug Enforcement Administration. The case was prosecuted by Assistant U.S. Attorney Jonathan R. Hornok.

 

TYLER, Texas — U.S. Attorney Stephen J. Cox announced that a 40-year-old Ore City, Texas man has been sentenced to 840 months in federal prison for child exploitation violations in the Eastern District of Texas. 

              Jeremy OKieth Kyle, also known as Corey Webster, also known as Rick, also known as Derrick Willis, also known as Eric Sanders, also known as Brad Smith, also known as Jason, also known as J, pleaded guilty on Feb. 19, 2020, to three counts of coercion and enticement and was sentenced to 840 months in federal prison by U.S. District Judge Jeremy D. Kernodle today.

              According to information presented in court, between 2013 and 2018, Kyle, a convicted sex offender, committed numerous offenses against eighteen minor female victims and four adult female victims.  He used a variety of false personas and promises of love and money to convince the victims to meet him and engage in sexual encounters.  He acquired images and videos of the victims engaged in sexually explicit conduct and threatened to distribute those images and videos in order to coerce more sexual encounters.

              “What this man did is a tragedy. These young victims were treated in ways no person should ever be treated,” said U.S. Attorney Stephen J. Cox.  “This case also serves as a warning to parents: exploitation and abuse can be one click away in today’s social media and technological environment.  Parents should take strong precautions to protect children from victimization.”

“Predators are targeting children of all ages online by using threats and manipulative tactics. The FBI will continue working with our partners to hold these online predators accountable for their dangerous behavior,” said FBI Dallas Special Agent in Charge Matthew DeSarno. “We encourage potential victims and their parents to contact the FBI or local law enforcement if they are targeted online.”

              Anyone who had contact, in person or on social media, with an individual who identified himself as Jeremy OKieth Kyle, Corey Webster, Rick, Derrick Willis, Eric Sanders, Brad Smith, Jason, or J, is urged to contact the U.S. Attorney’s Office at 1-800-804-3547.  The U.S. Attorney’s Office will take the necessary steps to protect the individuals’ identities and confidential information.                                                                                                

              This case was prosecuted 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.             

              The investigation leading to the charges was conducted by agents from the Federal Bureau of Investigation’s Tyler Resident Agency, the Texas Department of Public Safety - Criminal Investigations Division, the Tyler Police Department, the Longview Police Department, the Ore City Police Department, the Hughes Springs Police Department, the Daingerfield Police Department, and the Red Oak Police Department. Assistant United States Attorney Nathaniel C. Kummerfeld prosecuted the case.

WASHINGTON – This week, the Department of Justice announced a global resolution of its criminal and civil investigations into the opioid manufacturer Purdue Pharma LP (Purdue), and a civil resolution of its civil investigation into individual shareholders from the Sackler family.  The resolutions with Purdue are subject to the approval of the bankruptcy court. 

“The abuse and diversion of prescription opioids has contributed to a national tragedy of addiction and deaths, in addition to those caused by illicit street opioids,” said Deputy Attorney General Jeffrey A. Rosen.  “With criminal guilty pleas, a federal settlement of more than $8 billion, and the dissolution of a company and repurposing its assets entirely for the public’s benefit, the resolution in this week’s announcement re-affirms that the Department of Justice will not relent in its multi-pronged efforts to combat the opioids crisis.”

“This resolution is the result of years of hard work by the FBI and its partners to combat the opioid crisis in the U.S.,” said Steven M. D’Antuono, Assistant Director in Charge of the FBI Washington Field Office.  “Purdue, through greed and violation of the law, prioritized money over the health and well-being of patients.  The FBI remains committed to holding companies accountable for their illegal and inexcusable activity and to seeking justice, on behalf of the victims, for those who contributed to the opioid crisis.”

“The opioid epidemic remains a significant public health challenge that impacts the lives of men and women across the country,” said Gary L. Cantrell Deputy Inspector General for Investigations at the U.S. Department of Health and Human Services’ Office of Inspector General.  “Unfortunately, Purdue’s reckless actions and violation of the law senselessly risked patients’ health and well-being.  With our law enforcement partners, we will continue to combat the opioid crisis, including holding the pharmaceutical industry and its executives accountable.”

“This resolution closes a particularly sad chapter in the ongoing battle against opioid addiction,” said Drug Enforcement Administration (DEA) Assistant Administrator Tim McDermott.  “Purdue Pharma actively thwarted the United States’ efforts to ensure compliance and prevent diversion.  The devastating ripple effect of Purdue’s actions left lives lost and others addicted.  DEA will continue to work tirelessly with our partners and the pharmaceutical industry to address the damage that has been done, and bring an end to this epidemic that has gripped the nation for far too long.” 

Purdue Pharma has agreed to plead guilty in federal court in New Jersey to a three-count felony information charging it with one count of dual-object conspiracy to defraud the United States and to violate the Food, Drug, and Cosmetic Act, and two counts of conspiracy to violate the Federal Anti-Kickback Statute.  The criminal resolution includes the largest penalties ever levied against a pharmaceutical manufacturer, including a criminal fine of $3.544 billion and an additional $2 billion in criminal forfeiture.  For the $2 billion forfeiture, the company will pay $225 million on the effective date of the bankruptcy, and, as further explained below, the department is willing to credit the value conferred by the company to State and local governments under the department’s anti-piling on and coordination policy.  Purdue has also agreed to a civil settlement in the amount of $2.8 billion to resolve its civil liability under the False Claims Act.  Separately, the Sackler family has agreed to pay $225 million in damages to resolve its civil False Claims Act liability.

The resolutions do not include the criminal release of any individuals, including members of the Sackler family, nor are any of the company’s executives or employees receiving civil releases.

While the global resolution with the company is subject to approval by the bankruptcy court in the Southern District of New York, one important condition in the resolution is that the company would cease to operate in its current form and would instead emerge from bankruptcy as a public benefit company (PBC) owned by a trust or similar entity designed for the benefit of the American public, to function entirely in the public interest.  Indeed, not only will the PBC endeavor to deliver legitimate prescription drugs in a manner as safe as possible, but it will aim to donate, or provide steep discounts for, life-saving overdose rescue drugs and medically assisted treatment medications to communities, and the proceeds of the trust will be directed toward State and local opioid abatement programs.  Based on the value that would be conferred to State and local governments through the PBC, the department is willing to credit up to $1.775 billion against the agreed $2 billion forfeiture amount.  The department looks forward to working with the creditor groups in the bankruptcy in charting the path forward for this PBC so that its public health goals can be best accomplished.

The Criminal Pleas

As part of the plea, Purdue will admit that from May 2007 through at least March 2017, Purdue conspired to defraud the United States by impeding the lawful function of the DEA by representing to the DEA that Purdue maintained an effective anti-diversion program when, in fact, Purdue continued to market its opioid products to more than 100 health care providers whom the company had good reason to believe were diverting opioids and by reporting misleading information to the DEA to boost Purdue’s manufacturing quotas.  The misleading information comprised prescription data that included prescriptions written by doctors that Purdue had good reason to believe were engaged in diversion.  The conspiracy also involved aiding and abetting violations of the Food, Drug, and Cosmetic Act by facilitating the dispensing of its opioid products, including OxyContin, without a legitimate medical purpose, and thus without lawful prescriptions.

In addition, Purdue will admit to conspiring to violate the Federal Anti-Kickback Statute.  Between June 2009 and March 2017, Purdue made payments to two doctors through Purdue’s doctor speaker program to induce those doctors to write more prescriptions of Purdue’s opioid products.  Similarly, from approximately April 2016 through December 2016, Purdue made payments to Practice Fusion Inc., an electronic health records company, in exchange for referring, recommending, and arranging for the ordering of Purdue’s extended release opioid products – OxyContin, Butrans, and Hysingla.

The Civil Settlements

The department’s civil settlements resolve the United States’ claims as to both Purdue and its individual shareholders, members of the Sackler family.

The civil settlement with Purdue provides the United States with an allowed, unsubordinated, general unsecured bankruptcy claim for recovery of $2.8 billion.   This settlement resolves allegations that from 2010 to 2018, Purdue caused false claims to be submitted to federal health care programs, specifically Medicare, Medicaid, TRICARE, the Federal Employees Health Benefits Program, and the Indian Health Service.  The government alleged that Purdue promoted its opioid drugs to health care providers it knew were prescribing opioids for uses that were unsafe, ineffective, and medically unnecessary, and that often led to abuse and diversion.  For example, Purdue learned that one doctor was known by patients as “the Candyman” and was prescribing “crazy dosing of OxyContin,” yet Purdue had sales representatives meet with the doctor more than 300 times.  It also resolves the government’s allegations that Purdue engaged in three different kickback schemes to induce prescriptions of its opioids.  First, Purdue paid certain doctors ostensibly to provide educational talks to other health care professionals and serve as consultants, but in reality to induce them to prescribe more OxyContin.  Second, Purdue paid kickbacks to Practice Fusion, as described above.  Third, Purdue entered into contracts with certain specialty pharmacies to fill prescriptions for Purdue’s opioid drugs that other pharmacies had rejected as potentially lacking medical necessity.

Under a separate civil settlement, individual members of the Sackler family will pay the United States $225 million arising from the alleged conduct of Dr. Richard Sackler, David Sackler, Mortimer D.A. Sackler, Dr. Kathe Sackler, and Jonathan Sackler (the Named Sacklers).  This settlement resolves allegations that, in 2012, the Named Sacklers knew that the legitimate market for Purdue’s opioids had contracted.  Nevertheless, they requested that Purdue executives recapture lost sales and increase Purdue’s share of the opioid market.  The Named Sacklers then approved a new marketing program beginning in 2013 called “Evolve to Excellence,” through which Purdue sales representatives intensified their marketing of OxyContin to extreme, high-volume prescribers who were already writing “25 times as many OxyContin scripts” as their peers, causing health care providers to prescribe opioids for uses that were unsafe, ineffective, and medically unnecessary, and that often led to abuse and diversion.     

The civil settlement also resolves the government’s allegations that from approximately 2008 to 2018, at the Named Sacklers’ request, Purdue transferred assets into Sackler family holding companies and trusts that were made to hinder future creditors, and/or were otherwise voidable as fraudulent transfers.

This week’s resolution does not resolve claims that states may have against Purdue or members of the Sackler family, nor does it impede the debtors’ ability to recover any fraudulent transfers.

This week’s announcement was made at a press conference with Deputy Attorney General Jeffrey A. Rosen; Acting Assistant Attorney General of the Civil Division Jeffrey Clark; U.S. Attorney for the District of Vermont Christina Nolan; First Assistant U.S. Attorney for the District of New Jersey Rachael Honig; and U.S. Attorney for the Eastern District of Texas Stephen Cox.  The criminal investigation was conducted by the U.S. Attorney’s Offices for the Districts of New Jersey and Vermont, the Consumer Protection Branch of the Department of Justice’s Civil Division, and the FBI’s Washington, D.C. and Newark Field Offices, with assistance by the DEA and the U.S. Attorney’s Office for the Northern District of Ohio.  The civil settlements were handled by the Fraud Section of the Commercial Litigation Branch of the Department of Justice’s Civil Division, and the U.S. Attorney’s Offices for the Districts of New Jersey and Vermont, with assistance from the Department of Health and Human Services, Office of General Counsel and Office of Counsel to the Inspector General; the Defense Health Agency; and the Office of Personnel Management.  The Purdue bankruptcy matter is being handled by the U.S. Attorney’s Office for the Southern District of New York and the Civil Division’s Commercial Litigation Branch, Corporate/Finance Section.

 

Except to the extent of Purdue’s admissions as part of its criminal resolution, the claims resolved by the civil settlements are allegations only.  There has been no determination of liability in the civil matters.

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The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

PLANO, Texas – A 40-year-old Garland, Texas man has been sentenced for drug trafficking crimes in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today.

Michael David Miranda pleaded guilty on July 7, 2020, to conspiracy to distribute and possession with intent to distribute methamphetamine and heroin resulting in death and serious bodily injury.  Miranda was sentenced to 300 months in federal prison today by U.S. District Judge Sean D. Jordan.

According to information presented in court, beginning in approximately January 2016 and continuing through July 2020, Miranda, also known as “Buddha”, engaged in a conspiracy to manufacture, distribute and possess with the intent to manufacture and distribute methamphetamine and heroin, and in doing so, he caused serious bodily injury to JS and death to BB, individuals who had overdosed on the heroin sold to them by the defendant. Specifically, on January 16, 2019, officers with the Denton Police Department were dispatched to Medical City Hospital in Denton, Texas, regarding a foreign substance being injected into JS, a patient who was being treated in the Intensive Care Unit.  Denton PD narcotics detectives were able to establish through hospital surveillance videos that Miranda had entered and then exited JS’s room just prior to hospital staff finding JS unresponsive and not breathing. Hospital staff reported finding a syringe in JS’s IV line. Medical personnel were forced to resuscitate JS with a dose of Narcan, a medicine which counteracts the affects of a heroin overdose. Detectives were later able to establish that Miranda had injected the heroin into JS’s IV line at JS’s request. JS admitted to Detectives to purchasing heroin from Miranda on a regular basis since approximately 2016.

On January 23, 2019, Denton PD narcotics detectives utilized a confidential informant to conduct a buy-bust operation on Miranda. The CI contacted Miranda and asked to purchase heroin. Miranda agreed to meet the CI at the agreed upon location. Once Miranda arrived, officers were able to take him into custody. They found heroin and methamphetamine in his possession.

On January 25, 2019, Detectives interviewed Miranda and he admitted to selling heroin and methamphetamine and that he had brought heroin to JS while she was in the hospital on January 16th. Miranda was able to make bond on his charges and was released from the Denton County Jail. 

On October 26, 2019, officers with the Denton Police Department were dispatched to a residence in Denton, Texas, regarding a deceased person. Upon arrival, officers and medics found BB deceased in his bedroom. BB was surrounded by drug paraphernalia, indicating BB had possibly over-dosed on drugs. On January 30, 2020 the Tarrant County Medical Examiner's Office performed an autopsy and determined BB's cause of death was an overdose of an acute mixture of drugs, including heroin, methadone and methamphetamine. Denton PD narcotics detectives were able to establish that Miranda had sold BB the heroin which had caused BB to overdose and die.

On December 10, 2019, Denton PD narcotics detectives utilized a confidential informant to conduct a buy-bust operation on Miranda. The CI contacted Miranda and asked to purchase heroin. Miranda agreed to meet the CI at the agreed upon location. Once Miranda arrived, officers were able to take him into custody. They discovered more heroin in his possession.

Miranda was indicted by a federal grand jury on November 13, 2019, and charged with federal drug trafficking violations.

This case was investigated by the Denton Police Department and the Tarrant County Medical Examiner’s Office and prosecuted by Assistant U.S. Attorney Matthew T. Johnson.

A 46-year-old international terrorist convicted of additional terrorist activity that he committed while an inmate of the U.S. Bureau of Prisons has been sentenced in the Eastern District of Texas, announced the Department of Justice.

Mohamed Ibrahim Ahmed, an Ethiopian national born in Eretria, was found guilty by a jury in December 2019, of attempting to provide material support to a designated foreign terrorist organization (ISIS) and making a false statement to the FBI.  Ahmed was sentenced to an additional 300  months in federal prison today by U.S. District Judge Marcia A. Crone.

“While in prison for a prior terrorism conviction, Ahmed continued to engage in terrorist activity by recruiting fellow inmates to join ISIS and training them in preparation for future attacks,” said Assistant Attorney General for National Security John C. Demers.  “As long as terrorists keep offending, the Department will continue to bring them to justice.  We have done so in this case.”

“This terrorist’s original prison sentence did not diminish his support of ISIS or its ugly ideology,” said U.S. Attorney Stephen J. Cox.  “Fortunately, his efforts to radicalize and train others to commit acts of violence against civilians were thwarted by the quick actions of our law enforcement partners.  Our office is committed to pursuing terrorists wherever they hide, including within our federal prison system.”

“As terrorists have grown more determined to inflict violence on populations and use any tool or method at their disposal to do so, law enforcement has become more agile in disrupting their plots,” said FBI Special Agent in Charge of the Houston Division Perrye K. Turner.  “Despite serving a sentence for terrorism charges, Mohamed Ibrahim Ahmed had unwavering intent to continue on his quest for terror, and used his access to incarcerated individuals to further his recruiting efforts for ISIS. Today's sentence not only demonstrates the persistence terrorists and terrorist organizations have but also, reinforces the persistence of FBI agents in the Beaumont Resident Agency to protect the homeland." 

According to information presented in court, in 2013 Ahmed was convicted in the Southern District of New York of conspiring to provide material support to and receive military-type training from a foreign terrorist organization.  Ahmed had attended an al Qaeda training camp in Afghanistan in 1996 and was a member of the Brandbergen Mosque network, which financially and logistically supported other terrorist groups.  A federal judge in New York sentenced Ahmed to 111 months in federal prison and he was transferred to the Federal Correctional Institute (FCI) in Beaumont, Texas to serve his sentence. 

Ahmed continued his terrorist activities while serving his sentence at FCI-Beaumont.  He recruited at least five inmates to join ISIS and to conduct terrorist acts in the United States after their release from federal custody, telling them that he was aligned with ISIS and supported al Shabaab and al Qaeda.  From prison, he celebrated the Ariana Grande concert bombing and other acts of terror in the news, telling an inmate, “They kill kids, we gonna kill kids.”  Ahmed wanted the inmates he was recruiting to either travel abroad to join ISIS, or create “sleeper cells” within the United States to carry out attacks. 

Ahmed provided would-be recruits with a training manual on how to carry out violent jihad, including topics such as “how to carry out guerilla war,” “selection of human targets,” and “how to carry out assassinations.”  He even held physical training exercises with other inmates in the prison yard to get them in shape to carry out the acts of terror he was plotting.  Ahmed also discussed a plot with fellow inmates to bomb the Federal Detention Center in New York City as a revenge for his prosecution there.

This case was investigated by the Federal Bureau of Investigation’s Beaumont Resident Agency, out of the Houston Division, and prosecuted by Assistant U.S. Attorney Christopher T. Tortorice and Trial Attorneys Alicia Cook and Katie Sweeten of the National Security Division’s Counterterrorism Section.  Assistant U.S. Attorney Christopher T. Rapp participated in the sentencing hearing.

TYLER, Texas - U.S. Attorney Stephen J. Cox announced that the United States has seized 6 websites that were unlawfully used as part of a telemarketing/online advertising scheme to deceive Amazon customers into purchasing unnecessary services to set up their Amazon Echo devices.

              “The Eastern District of Texas is proud to work alongside our federal law enforcement partners to protect consumers from Internet-based fraud schemes, and we are glad to partner with companies such as Amazon which referred this matter to the Department in the first instance,” said U.S. Attorney Stephen J. Cox.  “The collaborative efforts that led to the seizures of these phony websites are just the first steps toward holding the wrongdoers accountable.”  

“Internet-based fraud schemes are challenging for law enforcement as they typically involve an organized group of con artists scattered around the world,” said William Mack, U.S. Secret Service Resident Agent in Charge of the Tyler Resident Office. “The success of this investigation was the direct result of investigative actions taken by the Secret Service and the Department of Justice.  The Secret Service will continue to strengthen our partnerships between the public and private sector, our law enforcement colleagues, and the Department of Justice.  The Secret Service will continue to lead the fight against cyber-enabled fraud and hold accountable all those who seek to exploit U.S. citizens for their own illicit gain.”

              The seized websites contained photographs of Amazon Echo devices and purported to offer services to help Amazon customers activate their devices.  These websites had links to “download” the Alexa app.  Rather than leading customers to actually download the Alexa app, these websites simulated a phony “download” process and ended with an error message concerning the purported “failed download.”  The websites then prompted customers to call specific telephone numbers for technical support with the application.

              Once customers called those phone numbers, so-called “technicians” working for the website operators would take remote control of the customers’ computers and convince them that there were “technical issues” that prevented their Echo devices from working properly.  But in reality, no such issues existed.  The technicians would then sell the customers computer services to fix these fictional issues, charging the customers a fee ($99 for a two-year plan or $149 for a four-year plan) for otherwise-free and otherwise-unnecessary steps like registering the Alexa software or providing network security. 

              The Justice Department recommends that Americans take the following precautionary measures to protect themselves from similar scams:

 

• Before purchasing products or services to support electronic devices, check with the actual manufacturer or provider of those devices to determine whether those services are legitimate or necessary.

 

• Do not click on links or open email attachments from unknown or unverified sources.

 

• Do not download software to allow unknown or unverified sources to access your computers or your devices.

 

• Do not purchase services from telemarketers or online marketers when the solicitation lacks a written description of the services provided and for which no business address is provided.

 

Further recommendations and resources for victims of deceptive marketing scams and more information on how to avoid becoming the victim of fraud schemes can be found at www.ftc.gov.

 

              Following the United States’ seizure of the websites, visitors to the sites will receive the following message:

 

This seizure was investigated by the United States Secret Service and prosecuted by Assistant U.S. Attorneys Jonathan Hornok, Nathaniel C. Kummerfeld, and Robert Wells.  The investigation was referred to the U.S. Attorney’s Office for the Eastern District of Texas by the Civil Division’s Consumer Protection Branch, as part of its coordination of the Transnational Elder Fraud Strike Force.

BEAUMONT, Texas – A 46-year-old international terrorist convicted for continuing to provide support to terrorist organizations while an inmate at the U.S. Bureau of Prisons has been sentenced in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today.

            Mohamed Ibrahim Ahmed, an Ethiopian national born in Eretria, was found guilty by a jury in December 2019, of attempting to provide material support to a designated foreign terrorist organization (ISIS) and making a false statement to the FBI.  Ahmed was sentenced to an additional 300 months in federal prison today by U.S. District Judge Marcia A. Crone.  This 25-year sentence will be followed by a lifetime of supervised release.

            “This terrorist’s original prison sentence did not diminish his support of ISIS or its ugly ideology,” said U.S. Attorney Stephen J. Cox.  “Fortunately, his efforts to radicalize and train others to commit acts of violence against civilians were thwarted by the quick actions of our law enforcement partners.  Our office is committed to pursuing terrorists wherever they hide, including within our federal prison system.”

            “While in prison for a prior terrorism conviction, Ahmed continued to engage in terrorist activity by recruiting fellow inmates to join ISIS and training them in preparation for future attacks,” said Assistant Attorney General for National Security John C. Demers.  “As long as terrorists keep offending, the Department will continue to bring them to justice.  We have done so in this case.”

            “As terrorists have grown more determined to inflict violence on populations and use any tool or method at their disposal to do so, law enforcement has become more agile in disrupting their plots,” said FBI Special Agent in Charge of the Houston Division Perrye K. Turner.  “Despite serving a sentence for terrorism charges, Mohamed Ibrahim Ahmed had unwavering intent to continue on his quest for terror and used his access to incarcerated individuals to further his recruiting efforts for ISIS. Today's sentence not only demonstrates the persistence terrorists and terrorist organizations have, but also, reinforces the persistence of FBI Houston Agents assigned to the Beaumont Resident Agency to protect the homeland.”   

            According to information presented in court, in 2013 Ahmed was convicted in the Southern District of New York of conspiring to provide material support to and receive military-type training from a foreign terrorist organization.  Ahmed had attended an al Qaeda training camp in Afghanistan in 1996 and was a member of the Brandbergen Mosque network, which financially and logistically supported other terrorist groups.  A federal judge in New York sentenced Ahmed to 111 months in federal prison and he was transferred to the Federal Correctional Institute (FCI) in Beaumont, Texas to serve his sentence. 

            Ahmed continued his terrorist activities while serving his sentence at FCI-Beaumont.  He recruited at least five inmates to join ISIS and to conduct terrorist acts in the United States after their release from federal custody, telling them that he was aligned with ISIS and supported al Shabaab and al Qaeda.  From prison, he celebrated the Ariana Grande concert bombing and other acts of terror in the news, telling an inmate, “They kill kids, we gonna kill kids.”  Ahmed wanted the inmates he was recruiting to either travel abroad to join ISIS, or create “sleeper cells” within the United States to carry out attacks. 

            Ahmed provided would-be recruits with a training manual on how to carry out violent jihad, including topics such as “how to carry out guerilla war,” “selection of human targets,” and “how to carry out assassinations.”  He even held physical training exercises with other inmates in the prison yard to get them in shape to carry out the acts of terror he was plotting.  Ahmed also discussed a plot with fellow inmates to bomb the Federal Detention Center in New York City as a revenge for his prosecution there.

            This case was investigated by the Federal Bureau of Investigation’s Beaumont Resident Agency, out of the Houston Division, and prosecuted by Assistant U.S. Attorney Christopher T. Tortorice and Trial Attorneys Alicia Cook and Katie Sweeten of the National Security Division’s Counterterrorism Section.  The sentencing hearing was conducted by AUSA Christopher T. Rapp.

BEAUMONT, Texas – U.S. Attorney Stephen J. Cox announced today that Assistant U.S. Attorneys (AUSAs) have been appointed to lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 3, 2020 general election.  AUSA Michelle Englade has been appointed to serve as the District Election Officer (DEO) for the Eastern District of Texas, and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.  While AUSA Englade will operate out of the U.S. Attorney’s Office headquarters in Beaumont, Texas, the United States Attorney’s Office for the Eastern District of Texas (EDTX) has also appointed regional officers to oversee election integrity issues in other areas of the district, with AUSA Allen Hurst serving in Tyler, Texas, AUSA Andrew Stover serving in Plano, Texas, and AUSA Will Tatum serving in Sherman, Texas.  Working together with the FBI, and state and local partners, these AUSAs will be collectively responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses, in consultation with Justice Department Headquarters in Washington.

            U.S. Attorney Stephen Cox said, “The right of every citizen to vote is a cherished hallmark of what it means to be an American.  Whether it is the fraudulent obtaining of dozens of illegal ballots as has recently been alleged in the northern part of our District, or the intimidation of citizens intending to cast their vote, EDTX will act swiftly, in coordination with our law enforcement partners, to protect the fairness and integrity of the democratic process.”           

            The Department of Justice has an important role in deterring election fraud and discrimination at the polls and combating these violations whenever and wherever they occur.  The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.

            Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input.  It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them.  For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law.  Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or illiteracy).

The franchise is the cornerstone of American democracy.  We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice.  In order to respond to complaints of election fraud or voting rights abuses on November 3, 2020, and to ensure that such complaints are directed to the appropriate authorities, citizens can reach out directly with reports of fraud or intimidation.  AUSA Englade can be reached by the public in Beaumont at (409) 839-2538, AUSA Hurst can be reached in Tyler, Texas, at (903) 590-1400, AUSA Stover can be reached in Plano, Texas, at (972) 509-1201, and AUSA Tatum can be reached in Sherman at (903) 868-9454.

In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The FBI can be reached by the public in the Eastern District of Texas at the following telephone numbers:

Beaumont – (409) 832-8571

Frisco – (214) 705-7000

Lufkin – (936) 637-3834

Sherman – (903) 892-8754

Texarkana – (870) 773-3382

Tyler – (903) 592-4301

Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by phone at 800-253-3931 or by complaint form at https://civilrights.justice.gov/.

            U.S. Attorney Cox said, “Public cooperation is essential to guaranteeing an open and fair election.  If citizens have specific information regarding election fraud, discrimination, or voter intimidation, we urge them to make that information available immediately to my Office, the FBI, or the Civil Rights Division.”

The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

BEAUMONT, Texas – This week, the Department of Justice announced it has charged more than 14,200 defendants with firearms-related crimes during Fiscal Year (FY) 2020, despite the challenges of COVID 19 and its impact on the criminal justice process. These cases have been a Department priority since November 2019 when Attorney General William P. Barr announced his commitment to investigating, prosecuting, and combating gun crimes as a critical part of the Department’s anti-violent crime strategy. These firearms-related charges are the result of the critical law enforcement partnership between United States Attorneys’ Offices and the Bureau of Alcohol, Tobacco, Firearms and Explosives, led by Acting Director Regina Lombardo, who has made firearms-related investigations a priority.

           “The number one priority of government is to keep its citizens safe,” said Attorney General Barr. “By preventing firearms from falling into the hands of individuals who are prohibited from having them, we can stop violent crime before it happens. Violating federal firearms laws is a serious crime and offenders face serious consequences.  The Department of Justice is committed to investigating and prosecuting individuals who illegally buy, sell, use, or possess firearms. Reducing gun violence requires a coordinated effort, and we could not have charged more than 14,000 individuals with firearms-related crimes without the hard work of the dedicated law enforcement professionals at the ATF, our U.S. Attorneys’ Offices across the country, and especially all of our state and local law enforcement partners.”

           “Protecting the public from violent crime involving firearms is at the core of ATF’s mission,” commented ATF Acting Director Regina Lombardo.  “Every day the men and women of ATF pursue and investigate those who use firearms to commit violent crimes in our communities, many of whom are prohibited from possessing firearms from previous convictions.  ATF, in collaboration with the U.S. Attorneys’ Offices across the nation, is committed to bringing these offenders to justice for their egregious and violent criminal acts.”

           “Keeping our communities in East Texas safe will always be the most fundamental priority of this District, and that starts with reducing gun violence and taking firearms out of the hands of prohibited persons,” said U.S. Attorney Stephen J. Cox.  “The Eastern District of Texas U.S. Attorney’s Office, along with all of our federal, state, and local law enforcement partners, will continue to aggressively pursue those who choose to illegally use and possess firearms.”

           Of the more than 14,200 cases charged, 239 cases have been brought by the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox.

           Some of those individuals indicted in the last two weeks in the Eastern District of Texas and their corresponding charges are as follows:

 

• Derionte Chrishaun Thomas, 24, of Beaumont, Texas, possession of a firearm by a prohibited person;
• Amber Dawn LeBlanc, 37, of Beaumont, Texas, felon in possession of a firearm and possession of a stolen firearm;
• Antonio Daquan Epperson, 29, of Brookston, Texas, possession of a firearm during a drug trafficking crime and felon in possession;
• Glenn Curtis Frazier, 51, of Honey Grove, Texas, felon in possession of a firearm;
• Austin Dee McManus, 20, of Pilot Point, Texas, possession of a firearm during a drug trafficking crime and possession of a firearm by a prohibited person;
• Andres Ocampo Acosta, 30, of Dallas, Texas, possession of a firearm in furtherance of a drug trafficking crime;
• Hector Javier Castenada Rueda, 42, of Dallas, Texas, possession of a firearm in furtherance of a drug trafficking crime;
• Robert Leon Franklin, III, 38, of Gainesville, Texas, possession of a firearm during a drug trafficking crime and possession of a firearm by a prohibited person;
• Moniqua Dyan Kershman, 24, of Ardmore, OK, possession of a firearm by a prohibited person;
• Phillip Eugene Seese, 51, of Gainesville, Texas, felon in possession of a firearm;
• Courtney Anderson, 40, of Dallas, Texas, felon in possession of a firearm; and
• Halil Sivri, 31, of Plano, Texas, illegal alien in possession of a firearm.

 

           Under federal law, it is illegal to possess a firearm if you fall into one of nine prohibited categories including being a felon, illegal alien, or unlawful user of a controlled substance. Further, it is unlawful to possess a firearm in furtherance of a drug trafficking offense or violent crime.  It is also illegal to purchase – or even to attempt to illegally purchase - firearms if the buyer is a prohibited person or illegally purchasing a firearm on behalf of others. Lying on ATF Form 4473, which is used to lawfully purchase a firearm, is also a federal offense.  The Department is committed to prosecuting these firearms offenses as well as using all modern technologies available to law enforcement such as the National Integrated Ballistic Information Network, known as NIBIN, to promote gun crime intelligence. Keeping illegal firearms out of the hands of violent criminals will continue to be a priority of the Department of Justice and we will use all appropriate, available means to keep the law abiding people of this country safe from gun crime. 

           For more information on the lawful purchasing of firearms, please see: https://www.atf.gov/qa-category/atf-form-4473.   

BEAUMONT, Texas - Five indictments in three different states were unsealed today indicting a total of twenty-four defendants, including alleged Aryan Circle (AC) gang members and associates, on charges of racketeering conspiracy, violent crimes in aid of racketeering, drug conspiracy, and unlawful firearms trafficking. 

The indictments were announced by Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Stephen J. Cox of the Eastern District of Texas, U.S. Attorney Robert M. Duncan, Jr. of the Eastern District of Kentucky, and U.S. Attorney Mike Hurst of the Southern District of Mississippi.  These indictments are part of a larger investigation into the AC, Operation Noble Virtue, that has targeted AC leadership and has resulted in seventeen federal convictions in six jurisdictions to date.

One of the indictments in the Eastern District of Texas charges six alleged AC members and associates with a racketeering conspiracy that includes acts involving murder, five alleged AC members with assault resulting in serious bodily injury in aid of racketeering, and two alleged AC members with kidnapping and conspiracy to commit kidnapping in aid of racketeering.  Among those charged are alleged current and former high-ranking gang leaders including William Glenn Chunn, aka “Big Head,” 38, of Texas; Michael Martin, aka “Aryan Prodigy,” aka “AP,” 37, of Texas; Kevin Kent, aka “Big Kev,” 35, of Indiana; and Malachi David Wren, 51, of Texas.  Other alleged AC members charged include Jesse Paul Blankenship, aka “JP,” 39, of Missouri; Timothy Long, aka “Timmy,” 41, of Arkansas; Jeremy Chad Dennis, aka “JD,” 43, of Texas; Becky Westbrook, 49, of Mississippi; Rodney Holt, aka “Turbo,” 48, of Texas; Bobby Dayle Boney, aka “Bear,” 50, of Texas; and Glynnwood Derrick, 46, of Texas. One additional defendant remains at large.

Another indictment in the Eastern District of Texas charges Rodney Holt, aka “Turbo”; as well as his associate who is not known to be an AC member, Eric Hoccheim, 39, of Texas, with five counts including firearms trafficking and conspiracy.  Operation Noble Virtue also resulted in a third indictment in the Eastern District of Texas, which charges Jeremy Klintman, aka “Shamrock,” 37, of Texas; Eulalio Torres-Cadenas, aka “Yayo,” 43, of Mexico; Shane Louque, 45, of Louisiana; and Breanna Beckley, 39, of Texas, with conspiracy to distribute controlled substances.  These defendants are not known to be affiliated with the AC.

The indictment in the Southern District of Mississippi charges William Glenn Chunn, aka “Big Head”; Aaron Matthew Rentfrow, aka “Mongo,” 40, of Indiana; Jeremy Chad Dennis, aka “JD”; and Johnathon Aaron Reynolds, 38, of Tennessee with violent crimes in aid of racketeering relating to the stabbing of an inmate at USP Yazoo.  That indictment also charges Daniel Wade Holler, aka “Knucklehead,” 34, of Texas, with accessory after the fact relating to the same attack. 

The indictment in the Eastern District of Kentucky charges Mitchell Leon Farkas, aka “Lifter,” 51, of Louisiana; Jonathan Tucker Gober, aka “Tucker,” 36, of Texas; James Matthew Poole, aka “Redwood,” 35, of Texas; and Andrew Dwayne Tinlin, aka “Tin,” 39, of Iowa, with violent crimes in aid of racketeering relating to the stabbing of an inmate at USP Big Sandy.

According to court documents, the AC is a violent, race‑based organization that operates inside federal prisons across the country and outside prisons in states including Texas, Arkansas, Louisiana, and Missouri.  The AC was established in the mid‑1980s within the Texas state prison system (TDCJ) after a period of turmoil within the Aryan Brotherhood of Texas (ABT) resulted in rejected and ex-ABT members creating the AC.  The AC was relatively small in comparison to other prison‑based gangs, but grew in stature and influence within TDCJ in the 1990s, largely through violent conflict with other gangs, white and non-white alike.  In recent years, the AC’s structure and influence expanded outside of prisons to rural and suburban areas in numerous states. 

Court records further indicate that the AC enforces its rules and promotes discipline among its members, prospects and associates through murder, attempted murder, assault, and threats against those who violate the rules or pose a threat to the organization.  Members, and oftentimes associates, are required to follow the orders of higher-ranking members without question.  The criminal acts charged in the indictments described above include shootings, stabbings, beatings, and “patch-burnings,” which are violent attacks that result in removal of a victim’s gang tattoo.

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

 

This case is being investigated by an Organized Crime Drug Enforcement Task Force (OCDETF) consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; Drug Enforcement Administration; Federal Bureau of Prisons; Texas Department of Public Safety; Houston Police Department-Gang Division; Montgomery County (TX) Precinct One Constable’s Office; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; Texas Department of Criminal Justice; New Jersey Department of Corrections-Special Investigations Division; Indiana State Police; Fort Smith (AR) Police Department; Arkansas Department of Corrections; Arnold (MO) Police Department; Jefferson County (MO) Sheriff’s Department; St. Louis Metropolitan Police Department; St. Louis County (MO) Police Department; Indiana Department of Corrections; Carrollton (TX) Police Department; Waller (TX) Police Department; Montgomery County (TX) Sheriff’s Office; Travis County (TX) Sheriff’s Office; Tarrant County (TX) Sheriff’s Office; Evangeline Parish (LA) Sheriff’s Office; Smith County (TX) Sheriff’s Office; McCurtain County (OK) Sheriff’s Office; Montgomery County (TX) District Attorney’s Office; Liberty County (TX) District Attorney’s Office; Harris County (TX) District Attorney’s Office; Mercer County (NJ) District Attorney’s Office; Evangeline Parish (LA) District Attorney’s Office; and the Sebastian County (AR) District Attorney’s Office.

 

The cases are being prosecuted by Trial Attorneys Bethany Lipman, Rebecca Dunnan, Lakeita Rox-Love, and Alexander Gottfried of the Criminal Division’s Organized Crime and Gang Section, Assistant U.S. Attorney Christopher Rapp of the Eastern District of Texas, Assistant U.S. Attorney Jeremiah Johnson of the Eastern District of Kentucky, and Special Assistant U.S. Attorney Michael Figgs Ganter of the Southern District of Mississippi, with the assistance of the U.S. Attorney’s Office for the District of New Jersey, the U.S. Attorney’s Office for the Western District of Louisiana, and the U.S. Attorney’s Office for the Eastern District of Missouri.

            SHERMAN, Texas –A 30-year-old Plano, Texas man has been convicted of federal violations related to a bank fraud and money laundering conspiracy in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today.

            Babatope Joseph Aderinoye was convicted by a jury of conspiracy to commit bank fraud, wire fraud, and money laundering; wire fraud, aggravated identity theft, and mail fraud. The guilty verdict came following a four-day trial before U.S. District Judge Amos Mazzant. 

            “We are committed to protecting East Texas victims—and especially our senior citizens—from financial threats, both foreign and domestic,” said U.S. Attorney Stephen J. Cox.  “We will hold perpetrators of these fraudulent schemes accountable wherever they are and will use all tools at our disposal to punish offenders and recover their ill-gotten gains.”

            According to information presented in court, Aderinoye would obtain fake passports in the names of others.  He would then use those fraudulent passports and the identifying information of others to establish false business entities and fraudulent bank accounts.  To this date, 13 individual aliases and 12 business aliases have been tied to Aderinoye, and there is evidence to suggest more aliases exist.  Once Aderinoye would open the fraudulent bank accounts, co-conspirators would engage in various business email compromise scams and telephone compromise scams to defraud individuals and businesses out of money.  In these scams, co-conspirators would pose as a known individual and direct the targeted victims to wire or send funds to Aderinoye or the fraudulent accounts Aderinoye had set up.  Once the money hit Aderinoye’s fraudulent accounts, he would immediately withdraw the funds, transfer them to other fraudulent accounts, or wire them internationally to a bank account he had set up in Nigeria.  The illicit proceeds were used to pay off co-conspirators and further fund their fraudulent schemes.  From June 2018 through September 2019, over $6.7 million was deposited into alias accounts of Aderinoye, with almost all of those funds being withdrawn or wired internationally.  The victims of the BEC scams included school districts such as Community ISD, Project 4031, a non-profit organization that helps families of the terminally ill, an individual whose identity was used to drain his retirement account, and an elderly man who had over $352,000 stolen from his investment account.  The investigation is ongoing, as co-conspirators and victims continue to be identified.

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

            This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorneys Wes Wynne and Will Tatum. 

 

TEXARKANA, Texas – A 60-year-old Bowie County man has pleaded guilty to possessing child pornography in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today.

 

            William Johnson Springer pleaded guilty to possessing child pornography before U.S. Magistrate Judge Caroline M. Craven on Oct. 5, 2020. In his plea agreement, Springer agreed to pay restitution to his victims, to register as a sex offender, and to be sentenced to a life term of supervised release following his imprisonment.

 

            According to information presented in court, Springer possessed a cell phone, which he used to download and collect images and videos containing child pornography. His collection of more than 600 images included depictions of prepubescent minors, sadistic or masochistic abuse or violence, and sexual abuse and exploitation of infants and toddlers.

 

            Springer was previously convicted of possession of child pornography in the United States District Court for the Northern District of Oklahoma. On February 9, 2009, he was sentenced to 67 months of imprisonment and five years of supervised release as a result of that conviction. Springer also has pending charges for failure to comply with registration requirements in the 202nd District Court in Bowie County.

 

            Under federal statutes, Springer faces a minimum of 10 years and up to 20 years in federal prison at sentencing. The 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 brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

 

            This case is being investigated by the Texarkana Resident Agency of the Dallas Field Office of the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Jonathan R. Hornok.

BEAUMONT, Texas - U.S. Attorney Stephen J. Cox announced today that 17 individuals have been arrested in the Eastern District of Texas pursuant to a federal indictment which alleges drug trafficking and firearms violations.

            A federal grand jury returned the indictment on Sep. 17, 2020, charging the following individuals with drug and gun crimes:

 

            Jonathan Limbrick, 43, of Jasper, Texas;

            Rhonda Monschelle Felder, 36, of Houston, Texas;

            Deandre Romerus Limbrick, 44, of Jasper, Texas;

            Terrence Neil Bronson, 51, of Jasper, Texas;

            Don Raynard Larkin, 46, of Beaumont, Texas;

            Cedrick Demond Hunt, 42, of Beaumont, Texas;

            Dominic Devonte Limbrick, 26, of Jasper, Texas;

            Crystal Michelle Carruth, 39, of Jasper, Texas

            Alisha Nicole Cleveland, 31, of Vidor, Texas;

            Corey Devond McQueen, 34, of Jasper, Texas;

            James Parker, 48, of Jasper, Texas;

            Ernest Houston, 60, of Jasper, Texas;

            Curtis Brumley, 44, of Jasper, Texas;

            Russell Limbrick, 36, of Jasper, Texas;

            Calvin Jewan Bell, 36, of Jasper, Texas;

            Shana Brooks, 39, of Brookeland, Texas; and

            Thomas Hadnot, 41, of Kirbyville, Texas.                

 

            The defendants were arrested by a joint law enforcement task force today and will make initial appearances in federal court next week. 

            According to court documents, the defendants are charged with possession and conspiracy to possess a controlled substance, possession of a firearm in furtherance of a drug trafficking crime, and possession of a firearm by an unlawful user of a controlled substance.  This joint DEA and ATF operation began in 2018 when agents learned of a Jasper, Texas-based methamphetamine trafficking organization allegedly distributing large amounts of methamphetamine throughout Southeast Texas.

This is an Organized Crime Drug Enforcement Task Force (OCDETF) case and is being investigated by the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Jasper Police Department, the Beaumont Police Department; the Texas Department of Public Safety; the U.S. Marshals Service; the Harris County Sheriff’s Office; the Jasper County District Attorney’s Office; the Vidor Police Department; the Jefferson County Sheriff’s Office; the Orange County Sheriff’s Office; and the Texas Parks and Wildlife Service.  This case is being prosecuted by Assistant U.S. Attorney Russell James.  OCDETF is the largest anti-crime task force in the country and its mission is to disrupt and dismantle the most significant drug trafficking and transnational criminal organizations that threaten the United States. The prosecutor-led, intelligence-driven, multi-agency task forces leverage the authorities and expertise of federal, state, and local law enforcement.

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

BEAUMONT, Texas – The Department of Justice Criminal Division today announced a historic nationwide enforcement action involving 345 charged defendants across 51 federal districts, including the Eastern District of Texas.  In conjunction with the takedown, CMS Center for Program Integrity announced that it has taken a record-breaking number of administrative actions related to telemedicine fraud, revoking the Medicare billing privileges of 256 additional medical professionals for their involvement in telemedicine schemes. 

           These defendants—more than 100 doctors, nurses and other licensed medical professionals—have been charged with submitting more than $6 billion in false and fraudulent claims to federal health care programs and private insurers, including more than $4.5 billion connected to telemedicine, more than $845 million connected to substance abuse treatment facilities, or “sober homes,” and more than $806 million connected to other health care fraud and illegal opioid distribution schemes across the country.

           Today’s enforcement actions were led and coordinated by the Criminal Division, Fraud Section’s Health Care Fraud Unit, in conjunction with its Health Care Fraud and Appalachian Regional Prescription Opioid (ARPO) Strike Force program, and its core partners, the U.S. Attorneys’ Offices, HHS-OIG, FBI, and DEA, as part of the department’s ongoing efforts to combat the devastating effects of health care fraud and the opioid epidemic.  The cases announced today are being prosecuted by Health Care Fraud and ARPO Strike Force teams from the Criminal Division’s Fraud Section, along with 43 U.S. Attorneys’ Offices nationwide, and agents from HHS-OIG, FBI, DEA, and other various federal and state law enforcement agencies.

           “The nationwide actions announced today demonstrate the Department of Justice’s commitment to combating health care fraud,” said U.S. Attorney Stephen J. Cox.  “The Eastern District of Texas applauds the efforts of our law enforcement partners and commits to continued collaboration in order to hold accountable those who steal from federal health care programs and to protect the beneficiaries who rely on them.”

 

Telemedicine Fraud Cases

           The largest amount of alleged fraud loss charged in connection with the cases announced today – $4.5 billion in allegedly false and fraudulent claims submitted by more than 86 criminal defendants in 19 judicial districts – relates to schemes involving telemedicine:  the use of telecommunications technology to provide health care services remotely.  According to court documents, certain defendant telemedicine executives allegedly paid doctors and nurse practitioners to order unnecessary durable medical equipment, genetic and other diagnostic testing, and pain medications, either without any patient interaction or with only a brief telephonic conversation with patients they had never met or seen.  Durable medical equipment companies, genetic testing laboratories, and pharmacies then purchased those orders in exchange for illegal kickbacks and bribes and submitted false and fraudulent claims to Medicare and other government insurers. 

           The continued focus on prosecuting health care fraud schemes involving telemedicine builds on the efforts and impact of the 2019 “Operation Brace Yourself” Telemedicine and Durable Medical Equipment Takedown, which resulted in an estimated cost avoidance of more than $1.5 billion in the amount paid by Medicare for orthotic braces in the 17 months following that takedown.

           Four of the individual defendants have been indicted in the Eastern District of Texas for conspiring to commit illegal remunerations in violation of the Anti-Kickback Statute.

           Steven Churchill, 34, of Boca Raton, Florida, Samson Solomon, 22, of West Palm Beach, Florida, David Warren, 49, of Boca Raton, Florida, and Daniel Stadtman, 66, of Allen, Texas, were indicted by a federal grand jury on September 9, 2020. 

           According to the indictment, the defendants are alleged to have conspired to pay and receive kickbacks in exchange for physicians’ orders from purported telemedicine companies.  The physicians’ orders were used to submit claims for payment to federal health care programs.  The conspirators obtained patient information, including protected health information and personally identifiable information, used the information to create fictitious physicians’ orders, and sold the physicians’ order to each other and to other durable medical equipment providers.  Within approximately eight months, the defendants collectively obtained more the $2.9 million in proceeds from the scheme.

           The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by federally-funded programs, including Medicare, Medicaid, and TRICARE. 

           If convicted, they each face up to 5 years in federal prison.  It is important to note that an indictment is not evidence of guilt.  All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

 

           This case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General, U.S. Department of the Treasury, Internal Revenue Service, Criminal Investigation, and the U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service.  It was prosecuted by Assistant U.S. Attorneys Nathaniel C. Kummerfeld and Adrian Garcia.

           Cases Involving the Illegal Prescription and/or Distribution of Opioids and Cases Involving Traditional Health Care Fraud Schemes

           The cases announced today involving the illegal prescription and/or distribution of opioids or that fall into more traditional categories of health care fraud include charges and guilty pleas involving more than 240 defendants who allegedly participated in schemes to submit more than $800 million in false and fraudulent claims to Medicare, Medicaid, TRICARE, and private insurance companies for treatments that were medically unnecessary and often never provided. 

           According to court documents, in many cases, patient recruiters, beneficiaries and other co-conspirators were allegedly paid cash kickbacks in return for supplying beneficiary information to providers, so that the providers could then submit fraudulent bills to Medicare.  Also included are charges against medical professionals and others involved in the distribution of more than 30 million doses of opioids and other prescription narcotics.

           In another case that is part of today’s takedown, on June 16, 2020, a registered nurse pleaded guilty to recklessly endangering Texarkana, Texas, patients by stealing fentanyl.  Clifford Russell Harris, a 38-year-old Bowie County man, pleaded guilty to tampering with a consumer product.

           According to information presented in court, Harris, who was a registered nurse at the time, broke into the secure drug storage at Healthcare Express in Texarkana, Texas, and tempered with the vials of fentanyl being stored there. Specifically, Harris extracted the fentanyl from the vials and refilled the vials with another liquid. Harris then returned the vials to the drug stock where they were available for administration to patients. Because the vials were labeled as fentanyl but did not contain fentanyl, Harris placed patients in danger of death or bodily injury. Harris admitted that he had acted with reckless disregard of the danger to patients and that his actions manifested an extreme indifference to that risk.  Harris was prosecuted by Assistant U.S. Attorney Jonathan R. Hornok and is awaiting sentencing.

           The following documents related to today’s announcement are available on the Criminal Division, Fraud Section’s Health Care Fraud Unit website through the following links:

• Graphics, Images and Resources: https://www.justice.gov/criminal-fraud/hcf-2020-takedown/graphics-images-resources
• Case Descriptions:  https://www.justice.gov/criminal-fraud/hcf-2020-takedown/case-descriptions

Court Documents:  https://www.justice.gov/criminal-fraud/hcf-2020-takedown/court-documents

PLANO, Texas – A Lake Kiowa, Texas man has been arrested and charged with international child exploitation crimes in the Eastern District of Texas announced U.S. Attorney Stephen J. Cox today.                 

          David Woods, 68, of Lake Kiowa, Cooke County, Texas has been charged in an indictment returned by a grand jury with coercing and enticing a minor to engage in illegal sexual activity and engaging in illicit sexual conduct in foreign places.  Woods has entered “not guilty” pleas to the charges.

          Woods came to the attention of authorities in July 2019 when he was encountered by members of Customs and Border Protection at the Dallas-Fort Worth International Airport as he returned to the United States from a months-long trip to the Philippines.  Agents with Homeland Security Investigations initiated an investigation, which revealed that Woods has used a cell phone, laptop, and a social media application to persuade, induce, entice, and coerce a minor female victim in the Philippines to engage in sex acts, film those acts, and send the images and videos to him.  Agents also discovered that Woods engaged in sex acts with the same child victim after traveling to the Philippines in 2019.  Woods was arrested on September 25, 2020 at the George Bush International Airport in Houston, Texas as he arrived on a flight from the Philippines.

          If convicted, Woods faces a minimum of 10 years and up to life in federal prison.

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

          This case is being investigated by Homeland Security Investigations-Dallas, with assistance from Customs and Border Protection in Houston, Dallas, and Honolulu, HSI-Philippines, and the National Center for Missing and Exploited Children.  The case is being prosecuted by Assistant U.S. Attorney Marisa J. Miller.

          It is important to note that an indictment or arrest should not be considered as evidence of guilt and that all persons charged with a crime are presumed innocent until proven guilty beyond a reasonable doubt.

MARSHALL, Texas – A 53-year-old Hallsville, Texas, man has pleaded guilty to a federal drug trafficking violation in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today.

Tony Goss pleaded guilty to an Information charging him with possession with intent to distribute anabolic steroids today before U.S. Magistrate Judge Roy S. Payne. 

According to information presented in court, on August 22, 2019, state and federal law enforcement agents executed a search warrant at 107 Community Blvd, Suite #5, Longview, Texas, which was a commercial property leased by Goss.  Agents ultimately recovered approximately 5,493 pills or tablets containing anabolic steroids, approximately 4,192 grams of anabolic steroid powder and, approximately 2,960 milliliters of liquid anabolic steroids.  Anabolic steroids are a Schedule III controlled substance.  Goss admitted that he possessed all the anabolic steroids with the intent to distribute them for commercial profit.  Goss further admitted that he was personally responsible for the distribution of, and possessed with intent to distribute, at least 176,585 dosage units of anabolic steroids, which he distributed through mass-marketing via the internet.

Goss acknowledged that he received $459,285.25 in proceeds from his sale of steroids, and that he used some of those funds to purchase seven firearms and a 2016 Ford F-350.  Goss agreed to forfeit to the government all the money he received from selling steroids, as well as all property he purchased with steroid proceeds.

Under the applicable federal statutes, Goss 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 investigated by the Hallsville Police Department and the U.S. Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney Jim Noble.

PLANO, Texas – A 38-year-old La Porte, Texas, woman has been convicted of federal drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today.

Jennifer Lynn Culpepper was found guilty of conspiracy to possess with intent to manufacture and distribute methamphetamine, following a three-day jury trial before U.S. District Judge Sean Jordan.

According to information presented in court, in September 2019, DEA, Dallas Enforcement Group One, began investigating a drug trafficking organization operating out of Houston and Dallas, Texas. This organization was responsible for distributing multi-kilogram quantities of methamphetamine. Anthony Rae Ruiz agreed with others to transport approximately nine kilograms of methamphetamine from Houston to Dallas and meet at a gas station in McKinney.  Members of DEA Enforcement Group One, the North Texas Criminal Interdiction Unit, and McKinney Police Department established surveillance at the location. Shortly after midnight on Sep. 19, 2019, Ruiz arrived at the gas station.  Ruiz exited his vehicle, removed a duffel bag containing methamphetamine from the trunk, and placed it in his backseat.

While in route to a second location to complete the deal, a traffic stop was conducted on Ruiz’s vehicle. Officers encountered Ruiz and Jennifer Lynn Culpepper. A canine officer alerted to the presence of narcotics in the vehicle and police seized approximately 10 kilograms of methamphetamine from the car.

On Sep. 19, 2019, the U.S. Drug Enforcement Administration filed a criminal complaint against Ruiz  and J Culpepper.  The complaint charged them with conspiracy to possess with intent to distribute methamphetamine.  On August 21, 2020, following a guilty plea, Ruiz was sentenced to 292 months in federal prison for his role in the conspiracy.

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

This case was investigated by the DEA Enforcement Group One, the North Texas Criminal Interdiction Unit, and the McKinney Police Department. The case was prosecuted by Assistant U.S. Attorneys from the Plano office.  This case was prosecuted by Assistant U.S. Attorneys Ernest Gonzalez and Colleen Bloss.

 

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TEXARKANA, Texas – Two Bowie County, Texas, men have been sentenced for drug trafficking crimes in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today.

Justin Rashad Young, a 31-year-old rapper and club promotor known as “Band Aid,” was found guilty on June 25, 2020, of conspiring with Joshea Cardwell to traffic methamphetamine and marijuana in Texarkana following a four-day jury trial before U.S. District Judge Robert W. Schroeder, III. Judge Schroeder sentenced Young to 140 months in federal prison.

Cardwell, a 30-year-old known as “Too Tall,” pleaded guilty on June 4, 2020, to conspiring with Young and to possessing a firearm in furtherance of their drug conspiracy. Judge Schroeder sentenced Cardwell to 130 months in federal prison.

According to information presented in court, on June 28, 2017, police found Young and Cardwell in the Magnuson Hotel near North State Line Avenue in Texarkana, Texas, with more than 400 grams of methamphetamine, 1.6 kilograms of marijuana, drug distribution materials, and a Taurus 9 mm pistol. Young had previously been shot at a drug house of his on Waterman Street in Texarkana, and on another occasion, was found in possession of marijuana after he left another drug house. Evidence recovered from Young’s cell phones and Facebook account revealed that Young regularly possessed firearms in connection with his drug business. At trial, a cooperating witness described how Cardwell and Young had been working together for months to sell methamphetamine and marijuana, which Cardwell was buying from California.

Young and Cardwell were indicted by a federal grand jury on Nov. 14, 2018, and again on July 24, 2019.

This case is a part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws.  Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce un violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.  The United States Attorney’s Office is prosecuting this case with support from the following Project Guardian partners: Special Operations Division of the Texarkana Texas Police Department, the Texarkana office of the Texas Department of Public Safety, Criminal Investigation Division, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by Assistant U.S. Attorneys Jonathan R. Hornok and Lucas R. Machicek.

More information about Project Guardian can be found at  https://www.justice.gov/projectguardian.

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TYLER, Texas –A 54-year-old Tyler, Texas man has been sentenced to federal prison for violations in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today.

Jose Luis Marquez Rodriguez pleaded guilty on Oct. 1, 2019 to conspiracy to produce, transfer, and forge false identification documents and was sentenced to 30 months in federal prison today by U.S. District Judge Jeremy D. Kernodle.  Marquez Rodriguez also forfeited  five firearms and ammunition; a computer and three printers; approximately $30,000 in cash; and two pieces of real property in Flint, Texas.  Marquez Rodriguez also agreed to a money judgment in the amount of $308,961.09, which represents the proceeds from his criminal conduct.

According to information presented in court, beginning in April 2009, Marquez Rodriguez was involved in a conspiracy to produce and sell fictitious U.S. identification documents to others.  The false documents included U.S. Social Security cards and Permanent Residence cards. Marquez Rodriguez admitted to being personally responsible for the transfer of over 100 false identification documents as part of this conspiracy. Marquez Rodriguez was indicted by a federal grand jury on April 23, 2019.

This case was investigated by the Federal Bureau of Investigation, Smith County Sheriff’s Office, U.S. Drug Enforcement Administration, U.S. Immigration and Customs Enforcement, and Texas Department of Public Safety.  This case was prosecuted by Assistant U.S. Attorney Alan R. Jackson.

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MARSHALL, Texas – A 34-year-old Avinger, Texas, woman has been sentenced for federal drug trafficking crimes in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today.

Ashley Christine McDaniel pleaded guilty on June 16, 2020, to possession with intent to distribute methamphetamine and was sentenced to 120 months in federal prison today by U.S. District Judge Rodney Gilstrap.

According to information presented in court, on March 28, 2018, McDaniel delivered approximately 26 grams of methamphetamine during a controlled purchase in Morris County, Texas, for $500 cash.  In all, McDaniel delivered a total of approximately 59 grams of methamphetamine for which she received $1,170.  McDaniel was indicted by a federal grand jury on Oct. 16, 2019 and charged with federal drug trafficking crimes.

This case was investigated by the Texas Department of Public Safety and the Morris County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Jim Noble.

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TYLER, Texas – U.S. Attorney Stephen J. Cox announced that a Longview sex offender who was identified in the course of a joint international investigation has been found guilty of possession of child pornography in the Eastern District of Texas.

             Charles Orange, 55, of Longview, Texas, was indicted by a federal grand jury on Feb. 20, 2019, and charged with possession of child pornography.  Orange was tried and found guilty by a jury.  At sentencing, Orange faces between 10 years and 20 years in federal prison. 

             “Congratulations to the team who brought Charles Orange to a well-deserved appointment with justice,” said U.S. Attorney Stephen J. Cox.  “The jury’s guilty verdict sends a clear message that child exploitation of any kind will not be tolerated.  On behalf of the Eastern District of Texas, I wish to express our gratitude to INTERPOL, Thailand’s DSI, Australia’s AFP, and our other law enforcement partners from around the world for their tireless efforts and shared commitment to save the lives of children and bring sexual predators to justice,” added U.S. Attorney Cox.  “This investigation exemplifies the important work that can be accomplished through close coordination and cooperation with our international partners.”

             “Child predators often believe they can conceal their identities by hiding behind their computer screens in furtherance of their efforts to exploit those most vulnerable," said Ryan L. Spradlin, special agent in charge of HSI Dallas. "This is a deplorable crime, and those who commit it have no place in our society. HSI will continue to work tirelessly with our international and domestic partners to pursue those who seek to sexually exploit children no matter where they are.”

             According to information presented at trial, the investigation of Charles Orange originated as a lead from Operation Blackwrist. Named after a bracelet worn by one of the victims, Operation Blackwrist  was launched by the International Criminal Police Organization (INTERPOL) in 2017 following the discovery of material depicting the abuse of 11 boys, all under 13 years old.  The material—first identified on the dark web—originated from a subscription-based website with nearly 63,000 users worldwide.  For years, the site had published new material weekly, with the abuser taking great care to avoid detection, often masking the children and leaving very few visual or audio clues.  Officers relied on the physical traits of the children to track their ongoing abuse and reached out to the global police community for help.

             In June 2017, Thailand’s Department of Special Investigations (DSI) took on the case, working in close collaboration with INTERPOL’s Liaison Bureau in Bangkok.  Investigators around the world also joined the effort to identify the 11 boys and find site administrators.  HSI identified the website IP address and worked on establishing potential links to the United States.

             Bulgaria’s Cybercrime Department at the General Directorate Combating Organized Crime, supported by Europol, took down the website’s servers. The Department of Internal Affairs in New Zealand deconflicted intelligence and compiled information packages on website users for INTERPOL member countries.  The US National Center for Missing and Exploited Children cross-checked e-mail addresses and provided additional intelligence.  The Australian Federal Police (AFP) and South Australian Police came on board when an IP address pointed to a location in Adelaide.

             In November 2017, the first victims were identified, leading to simultaneous arrests in Thailand and Australia two months later.   The website’s main administrator, based in Thailand, was identified as Montri Salangam.  He was the man seen abusing the 11 boys, one of whom was his nephew.  The children had been lured to Salangam’s home with meals, internet access and football games.  A second administrator, Ruecha Tokputza, was based in Australia.  Police found thousands of images taken in both Thailand and Australia on his seized devices, some of which featured Tokputza as the main abuser.  The youngest identified during the South Australian court proceedings was just 15 months old.

             In June 2018, Thai courts sentenced Salangam to 146 years in prison on charges of child rape, human trafficking, and possession and distribution of child sexual abuse material.  A second man, an elementary school teacher close to Tokputza, received 36 years in prison on the same charges.  On May 17, 2019, an Australian judge sentenced Tokputza to 40 years and three months in prison, the longest sentence ever imposed in Australia for child sex offenses.   The judge referred to Tokputza as “every child’s worst nightmare” and “every parent’s horror.”

             INTERPOL Secretary General Jürgen Stock welcomed the successful prosecutions and applauded the massive international effort required. 

             “Operation Blackwrist sends a clear message to those abusing children, producing child sexual exploitation material and sharing the images online: We see you, and you will be brought to justice.  Every child abuse image is evidence of a crime and INTERPOL will always provide its full support to officers on the ground to help identify and rescue victims around the world.”

             “These efforts have already resulted in numerous arrests in the United States to include individuals occupying positions of public trust.  We are proud to be a part of these international efforts,” said HSI Bangkok Regional Attaché Eric McLoughlin.

             The website and its administrators sparked a series of investigations around the world, leading to further arrests in Thailand, Australia, and the United States.  Police in nearly 60 countries examined referrals compiled by New Zealand.

             HSI Bangkok and HSI Indianapolis partnered with INTERPOL and DSI, as well as other law enforcement agencies, to pursue any investigative leads with a potential nexus to the United States.  On January 16, 2018, HSI Bangkok assisted Thai authorities with the execution of search and arrest warrants in furtherance of this operation.  One arrest was executed, and five victims were rescued at the time of the operation. 

             Following this operation, HSI Bangkok worked with the HSI Cyber Crimes Center (C3) to ensure actionable leads were provided to HSI domestic offices for further investigation.  HSI Indianapolis, HSI Buffalo, HSI Ft. Lauderdale, HSI Norfolk, HSI Tyler, and C3 provided significant support for the operation.

             To date, the operation has led to the rescue of 50 children, as well as the arrest and prosecution of child sex offenders in Thailand, Australia, and the United States.

             Agents with HSI Tyler, acting upon information provided in the Operation Blackwrist lead, executed a search warrant on Dec. 20, 2018 at Charles Orange’s residence in Longview, Texas.  A device containing child pornography was found next to Orange’s bed.  According to the testimony of a forensic analyst, child pornography contained on the device had been accessed and downloaded as recently as the night before the execution of the search warrant.  Additionally, analysts testified that Orange’s email address, Internet history, and Internet Protocol (IP) address connected him to the child exploitation website identified in Operation Blackwrist.  Orange, a sex offender, was previously convicted in 2008 of Indecency with a Child.

              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.

The investigation leading to the charges was conducted by agents from the U.S. Immigration and Customs Enforcement, Homeland Security Investigations, and the Longview Police Department with support from HSI C3.  Assistant U.S. Attorneys Nathaniel C. Kummerfeld and Marisa Miller prosecuted this case.

BEAUMONT, Texas – A 23-year-old Joaquin, Texas man has been sentenced for child exploitation violations in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today.

              Alexander Nathan Barter pleaded guilty on Dec. 20, 2019, to attempted coercion and enticement of a minor and distribution of child pornography and was sentenced to 480 months in federal prison today by U.S. District Judge Michael Truncale.  Following the completion of his prison sentence, Barter was also ordered to submit to a lifetime of supervised release. 

              As part of his plea agreement with the government, Barter agreed to be sentenced to a term of imprisonment of 20 years on each count, with each party reserving the right to request that the terms be sentenced concurrently or consecutively.  Barter’s counsel requested that the Court impose a total term of imprisonment of 20 years; the government requested a sentence of 40 years’ imprisonment.

              According to information introduced as part of Barter’s plea and at sentencing, in October 2018, Barter posted an ad on a dark web site stating, “I’d like to try necrophilia and cannibalism, and see how it feels to take a life.  If you’d be willing to let me kill you, are in the US (preferably in the south) and can travel by car, contact me.”  An undercover officer saw the ad and responded, utilizing the persona of a father with a 13-year old daughter.  Between October 9, 2018 and October 19, 2018, Barter and the undercover officer exchanged a series of messages that included Barter’s repeated interest in raping, killing, and eating the 13-year old child.  Barter provided the undercover with instructions on traveling from Florida to Shelby County, Texas, what to tell the child to get her acquiescence to travel, and how to conceal evidence of their crime.  On October 19, 2018, Barter arrived at the designated meet site in Joaquin, Texas with a knife, trash bag, cellular phone, and a tablet.

“As this chilling case demonstrates, online talk is not always just talk.  The constant vigilance of our law enforcement partners has prevented an evildoer from finding a likeminded accomplice and bringing his grisly plan to fruition,” said U.S. Attorney Stephen J. Cox.  “This case is a sobering reminder of how the brave men and women of law enforcement face down the worst of the worst in the scariest of scenarios.” 

              “In my 23-year-career in law enforcement, this is among the most morally depraved and appalling criminal conspiracies that I have come across,” said Mark Dawson, special agent in charge of HSI Houston. “Without the quick and decisive actions of special agents from HSI Cocoa Beach and HSI Beaumont this disturbed predator would still be out there looking for potential victims to carry out his sick and demented fantasies.”               

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

This case is being investigated by Homeland Security Investigations in Lufkin, Beaumont, and Houston, Texas; Homeland Security Investigations Cocoa Beach, Florida, Child Exploitation Task Force; Brevard County Sheriff’s Office (Florida); Nacogdoches Police Department; Texas Department of Public Safety; Customs and Border Protection Air Units; and Shelby County Sheriff’s Office, and prosecuted by Assistant U.S. Attorney Marisa Miller and U.S. Department of Justice Senior Trial Attorney Jennifer Toritto Leonardo.

SHERMAN, Texas – An Oklahoma mother and son have been sentenced for federal violations in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today.

Lori Majors, 45, of Durant, Oklahoma, pleaded guilty on Dec. 13, 2019, to kidnapping and aiding and abetting and money laundering conspiracy and was sentenced to 480 months in federal prison by U.S. District Judge Amos L. Mazzant, III, on September 10, 2020.

Max Majors, 21, of Durant, Oklahoma, pleaded guilty on Dec. 12, 2019, to kidnapping and aiding and abetting and was sentenced to 240 months in federal prison by Judge Mazzant on September 10, 2020.

“The 20 and 40-year sentences in this case demonstrate how seriously federal law treats elder abuse,” said U.S. Attorney Stephen J. Cox. “Let this case serve as a warning, and hopefully a deterrent, to others who might seek to exploit or victimize our nation’s seniors.”

According to information presented in court, on April 15, 2018, Lori Majors did unlawfully and willfully combine, conspire and agreed to extort, kidnap or rob an 83-year-old victim, and demand ransom, and in committing or in furtherance of the commission of the offense traveled in interstate commerce from Texas to Colorado, and used a motor vehicle as a means, facility, and instrumentality of interstate commerce.

On or about March 29, 2018, Justin Majors, rented a vehicle from Sherman Enterprise Leasing Company and drove to Colorado Springs, Colorado along with Cheryl Ann Jordan with the intent to commit the robbery with other family members.

When Justin Majors and Cheryl Ann Jordan arrived in Colorado they met with other family members who were already in Colorado to finalize plans to rob the victim at her residence. They specifically discussed the plan to rob the victim with Lori Majors, Bryan Majors, Max Majors and Ashleigh Stonebarger. Each agreed to go forward with the plan and split the proceeds of the robbery.

On April 5, 2018, Justin Majors, Cheryl Ann Jordan and Max Majors went to the victim’s residence. Justin Majors and Max Majors entered the victim’s residence through an unlocked dog door. Cheryl Ann Jordan remained in the vehicle waiting for them to complete the robbery.

Justin Majors and Max Majors went into the victim’s bedroom and found her asleep in bed. Justin Majors and Max Majors woke the victim and told her that they had her son tied-up and would hurt him if she did not tell them where the money was located.

The victim told Justin Majors and Max Majors that her money was located in a safe downstairs. Max Majors confined and extorted the victim as Justin Majors went downstairs to look for the safe and the money. Justin Majors located the safe downstairs and pried it open with a pry bar which he had brought to commit the robbery. Justin Majors removed over $350,000 from the safe. Max Majors moved the victim from her bed and confined her in the bathroom until they left the residence with the money. Justin Majors and Max Majors left the residence and split the proceeds from the robbery with Lori Majors and Bryan Majors. The robbery and extortion resulted in a loss of $500,500 to the elderly victim.

Lori and Max Majors were indicted by a federal grand jury on Feb. 6, 2019 and charged with federal kidnapping-related violations.

In October 2017, President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law. The EAPPA’s purpose is to increase the federal government’s focus on preventing elder abuse and exploitation. Subsequently, the Department of Justice launched the Elder Justice Initiative (EJI). Through the EJI, the Department has participated in hundreds of criminal and civil enforcement actions involving misconduct that targeted vulnerable seniors. This past March, the Department announced the largest elder fraud enforcement action in American history, charging more than 400 defendants in a nationwide sweep. The Department has likewise conducted hundreds of trainings and outreach sessions across the country. The EJI website contains useful information, including educational resources about prevalent financial scams so you can guard against them.

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 7 days a week from 6:00 a.m. to 11:00 p.m. eastern time. English, Spanish and other languages are available.

This case was investigated by the Federal Bureau of Investigation; El Paso County, Colorado Sheriff’s Office; Durant, Oklahoma Police Department; and the Sherman Police Department and prosecuted by the U.S. Attorney’s Office for the Eastern District of Texas, Plano office.

BEAUMONT, Texas - U.S. Attorney Stephen J. Cox announced today that a federal judge has entered a preliminary injunction barring Jake’s Fireworks and Right Price Chemicals from resuming business operations out of their Twin City Highway location in Nederland. 

              “If businesses are used as a front for drug trafficking, they can pose a serious threat to the community,” explained U.S. Attorney Stephen Cox. “The Eastern District of Texas is committed to using all available criminal and civil law enforcement tools to combat such threats.  Here, a civil injunction was particularly critical to stopping the defendants from continuing to engage in their alleged misconduct and presenting a risk of harm.”

              The Eastern District sought and obtained a temporary restraining order (“TRO”) under the Controlled Substances Act on July 13, 2020, on the grounds that Jake’s Fireworks was a drug-involved premises.  The government alleged that Jake’s Fireworks was a front for Right Price Chemicals, a company alleged to have distributed 1,4 butanediol, commonly referred to as “BDO” across the country in violation of federal law.  BDO is a chemical manufactured only for industrial or laboratory use as a floor stripper or vehicle wheel cleaner and is not intended for human consumption.  Congress has identified BDO as a “date rape drug” and has criminalized illegal internet sale of BDO to unauthorized purchasers. 

              The July 13th TRO immediately shut down operations of the business and any further distribution of BDO and other chemicals by Jake Daughtry, Joe Daughtry, Sandra Daughtry, and Kip Daughtry.  Based on evidence compiled through its investigation, the government moved to convert the TRO into a preliminary injunction to prevent Jake’s Fireworks and Right Price Chemicals from reopening altogether.

              Following an evidentiary hearing on September 2, 2020, Judge Michael Truncale granted the government’s request and enjoined Jake’s Fireworks and Right Price Chemicals from resuming business operations.  After hearing testimony from an agent with the DEA’s West Palm Beach Task Force and a contract chemist employee of Right Price Chemicals, Judge Truncale found the government proved a substantial likelihood of success on the merits of its civil injunction suit.  In his order granting the preliminary injunction, Judge Truncale explained the evidence showed:

• Right Price Chemicals ordered and shipped BDO out of the Jake’s Fireworks premises;
• BDO was stored in and around the Jake’s Fireworks premises;
• Right Price Chemicals’ business offices and operations were situated within the Jake’s Fireworks building;
• Employees of Right Price Chemicals, including Jake Daughtry, knew that BDO was a “controlled substance analogue” and that customers were using BDO for human consumption; and
• Right Price Chemicals continued to sell BDO for human consumption despite knowing it was being used illegally.

 

              The preliminary injunction continues to prevent Jake’s Fireworks or Right Price Chemicals from reopening and resuming shipping BDO across the country in violation of federal law.  The injunction also prohibits Jake’s Fireworks from reopening for seasonal fireworks sales. 

              This is an Organized Crime Drug Enforcement Task Force (OCDETF) case and is being investigated by the Drug Enforcement Administration West Palm Beach, Florida, and Beaumont; United States Postal Service; Internal Revenue Service-Criminal Investigation;  Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Jefferson County Sheriff's Office.  Essential support and coordination was provided by numerous components of DEA headquarters and the Department of Justice’s multi-agency Special Operations Division (SOD), including assigned attorneys from the Narcotic and Dangerous Drug Section (NDDS).  This case is being prosecuted by Assistant U.S. Attorneys Robert Wells and Michelle Englade.

              The claims made in the complaint are allegations that, if the case were to proceed to trial, the government must prove to receive a permanent injunction against the defendants.

TEXARKANA, Texas – A 49-year-old Cass County, Texas, man has pleaded guilty to a federal drug violation in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today.

Bryan Lee Simmons pleaded guilty today to conspiring to distribute methamphetamine before U.S. Magistrate Judge Roy S. Payne, agreeing to be sentenced to four years in federal prison and not to engage in the practice of law for at least three years thereafter.

According to information presented in court, beginning in July 2019 and continuing through August 2019, Simmons agreed with others to distribute methamphetamine in the Cass County Jail. Specifically, on August 29, 2019, he entered the Cass County Jail under the guise of meeting with a client. When he entered the jail, he had methamphetamine hidden on his body, which he intended to distribute to an inmate. Simmons had smuggled drugs into the jail on at least two prior occasions. When Simmons drove to the jail that day, he was carrying a Colt MK IV 0.45 caliber pistol.

A federal grand jury returned an indictment charging Simmons with federal drug trafficking crimes on March 18, 2020. Under federal statutes, Simmons 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 Texas Department of Public Safety, Texas Rangers Division, with assistance from the Cass County, Texas, District Attorney’s Office and the Cass County, Texas, Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Jonathan R. Hornok.

BEAUMONT, Texas – Two Vidor, Texas women have pleaded guilty to federal drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today.

Catherine Ardis, 62, and Michelle Lea Harrington, 51, pleaded guilty today to conspiracy to possess with intent to distribute a controlled substance, namely hydromorphone, before U.S. District Judge Marcia A. Crone.

               According to information presented in court, Harrington lived at a home located on FM 105 North in Vidor, Texas, in which several other persons, including Ardis, also resided.  Federal agents began their investigation of Harrington and Ardis in June of 2019 after three persons died as a result of opiates purchased from Ardis at this home.  Medical examination of the deceased persons determined that the victims died from poly-drug toxicity resulting from the use of hydromorphone pills, also referred to as Dilaudid.  As part of the factual basis for the plea, Ardis admitted to selling the hydromorphone pills that resulted in the death of the three victims.

“Trafficking of drugs ordinarily only available by prescription places the public at great risk,” said U.S. Attorney Stephen J. Cox.  “The United States is committed to punishing those that seek to profit by distributing such drugs outside the watchful care of a doctor.”

“The drug trafficker who provides the drug that causes or contributes to the overdose death of a person will be held accountable,” said Special Agent in Charge Steven S. Whipple of the DEA Houston Division.  “The DEA and our law enforcement partners will continue to commit significant resources to the identification and investigation of those who cause the death of another human, whether by violence or overdose.”

A federal grand jury returned an indictment charging the defendants with federal drug trafficking crimes on March 4, 2020.  Under federal statutes, Ardis and Harrington face 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 U.S. Drug Enforcement Administration, Vidor Police Department, Jefferson County Sheriff’s Office, Beaumont Police Department, Port Arthur Police Department, and prosecuted by Assistant U.S. Attorney Michael A. Anderson.

BEAUMONT, Texas – Individuals claiming to represent the Department of Justice are calling members of the public to get their personal information, U.S. Attorney Stephen J. Cox warned today. 

According to the Office of Justice Programs’ Office for Victims of Crime, the scammers falsely represent themselves as Department of Justice investigators or employees and attempt to obtain personal information from the call recipient, or they leave a voicemail with a return phone number.  The return phone number directs users to a recorded menu that matches the recorded menu for the department’s main phone number.  Eventually, the user reaches an “operator” who steers the user to someone claiming to be an investigator.  That “investigator” then attempts to gain the user’s personal information.  This scam appears to be targeting the elderly.

“The Department of Justice works tirelessly to hold criminals accountable and protect victims.  Behavior that exploits the trust the public has in our government, preying on society’s most vulnerable, is simply abhorrent, and our office will investigate and prosecute these scams to the fullest extent of the law,” said U.S. Attorney Stephen J. Cox, adding, “never share personal or financial information in response to unsolicited phone calls.”

Those who receive these calls are encouraged to report these scams to the FTC via their website or by calling 877–FTC–HELP (877-382-4357). Fraud can also be reported to the FBI for law enforcement action at https://www.justice.gov/criminal-fraud/report-fraud.

The Office of Justice Programs’ Office for Victims of Crime created the National Elder Fraud Hotline for people to report fraud against anyone age 60 or older. Reporting certain financial losses due to fraud as soon as possible, and within the first 2–3 days, can increase the likelihood of recovering losses. The hotline is open seven days a week. For more information about the hotline, please visit https://stopelderfraud.ovc.ojp.gov/.

TYLER, Texas – A 52-year-old Edgewood, Texas, man has been sentenced for federal drug trafficking crimes in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today.

               Timothy Dwayne Henson pleaded guilty on Jan. 7, 2020, to conspiracy to possess with intent to distribute methamphetamine and was sentenced to 65 months in federal prison today by U.S. District Judge Jeremy D. Kernodle.              

               According to information presented in court, on two separate occasions in July 2018, Henson sold methamphetamine during controlled purchases in Van Zandt County.  On Sep. 9, 2018, law enforcement executed a search warrant at his residence in Van Zandt County and recovered methamphetamine.  Henson admitted to being involved in a conspiracy to obtain and distribute methamphetamine, and that he was directly responsible for the distribution of at least 500 grams of methamphetamine.  Henson was indicted by a federal grand jury on Aug. 8, 2018 and charged with federal drug trafficking crimes.

               This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Van Zandt County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Alan Jackson.

BEAUMONT, Texas – The Department of Justice Criminal Division announced today that it has charged more than 50 people who allegedly committed fraud to obtain funds from the Paycheck Protection Plan (PPP). 

          The PPP program is authorized by the CARES Act, which 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.  The CARES Act initially authorized up to $349 billion in forgivable PPP loans to small businesses for job retention and certain other expenses, and in April 2020, Congress authorized over $300 billion in additional PPP funding,

          In partnership with the Criminal Division, the Eastern District of Texas has played a lead role in pursuing CARES Act fraud and has declared COVID-related fraud a top priority.

           “When thieves and fraudsters steal CARES Act funding, they steal from all of us – the corner store, the dry cleaner, and the local grocer.  These are not simple or easy cases to investigate and charge.  They involve piecing together often-complex financial, payroll, and tax records for individuals and companies.  This makes it all the more remarkable that the men and women of the Department of Justice have been able to bring so many cases so quickly — against over 50 defendants in a matter of months — and is a testament to the hard work and dedication of federal prosecutors and agents and our partners across the U.S. government.”

          The Eastern District of Texas has charged three individuals with violations related to the improper use of PPP funds.  In each case, the individuals fraudulently claimed their businesses had suffered catastrophic losses due to the COVID-19 pandemic and requested assistance in the form of forgivable small business loans through the PPP.  In May, Shashank Rai and Samuel Yates were each charged in separate cases with violations of wire fraud, mail fraud, and making false statements to a bank and to the SBA in order to unlawfully obtain millions of dollars in PPP loans.  In June, Fahad Shah was indicted and charged with three counts of wire fraud, one count of making a false statement to a bank, and four counts of money laundering.  It is alleged that Shah illegally obtained millions of dollars, which he used to purchase multiple Tesla automobiles, to play the stock market, and for personal expenses.  When conduct like the kind alleged in these cases occurs, it depletes the pool of available funds for businesses with legitimate needs, such as payroll for workers.  According to some reports, as many as 80 percent of loan applicants were turned away due to funds not being available.

          In addition to PPP cases, the Eastern District of Texas has also indicted James Mwanza, as well as Dalton Brewer and Emilee Fenton, for identity theft in connection with CARES Act Economic Impact Payments (EIPs).  These defendants allegedly used the names, birth dates, and Social Security Numbers of unknowing persons in order to illegally obtain EIP funds.  An estimated $300 billion of the CARES Act total was allocated for EIPs.  Under the CARES Act, qualifying individuals may receive up to $1,200 in EIPs per adult, up to $2,400 for married couples filing jointly, and $500 per child under 17 years old.  Individuals with income exceeding $99,000 or joint filers whose income exceeds $198,000 do not qualify for any payment.

          These cases are tremendously important for many reasons, and the speed with which these cases have been investigated and prosecuted is unparalleled.  The Department’s efforts began early in the implementation of the CARES Act, as prosecutors and agencies moved quickly to establish law enforcement partnerships, obtain critical data and evidence, and take concrete and affirmative steps to identify CARES Act fraud.  This cooperation, in turn, produced immediate results.  The Eastern District of Texas partnered with the Criminal Division to bring the very first PPP-related fraud cases within two months of the loan program’s launch

          Public awareness and cooperation amongst agencies is critical to fight against COVID-related fraud.  In July, U.S. Attorney Stephen J. Cox wrote an opinion editorial, which was published in the Texas Lawyer, pledging to remain vigilant in pursuing those individuals seeking to steal CARES Act assistance from those who truly need it and who it is intended to benefit.  As part of that pledge, in August, the Eastern District of Texas entered into a Memorandum of Understanding (MOU) with the Office of the Special Inspector General for Pandemic Recovery (SIGPR) providing for the designation of Assistant U.S. Attorneys in the Eastern District of Texas to assist with SIGPR-related investigations and prosecutions.  EDTX plans to work with SIGPR, as well as DOJ’s Criminal Division and our other law enforcement partners to focus on coordinated criminal rings that have engaged in the systematic, organized looting of PPP funds.

          Another key component of the Department’s ability to bring these cases so quickly has been the use of public-private partnerships to maximize its awareness and visibility of suspicious conduct and the collection of critical evidence.  Many financial institutions have been strong partners in assisting the Department in detecting and investigating potentially fraudulent activity and safeguarding taxpayer dollars by freezing funds and accounts.  In the coming weeks, EDTX plans to build partnerships with Texas banks to further our ability to uncover and combat suspected fraud.

          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 Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.   

BEAUMONT, Texas –A Beaumont, Texas business owner and his wife have been sentenced for federal tax violations in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today.

          In February 2020, Dick Brocato, Jr., 68, and his wife, Judith L. Brocato, 65, both of Beaumont, Texas, were convicted by a jury of conspiracy to defraud the United States for purposes of impeding the government functions of the Internal Revenue Service (IRS) in the collection of income tax and six counts of making and submitting false tax returns on both their personal and business for 2012-2014.  Today, the Brocatos were each sentenced to 33 months in federal prison by U.S. District Judge Marcia Crone.  They were also ordered to pay restitution in the amount of $617,762 to the IRS and fines of $15,000 each.

          According to information presented in court, the Brocatos owned a lawn service company, Superior Lawn Service, which was operated as an S Corporation for tax purposes.  The Brocatos were the sole shareholders of the company, and Judith Brocato served as corporate president, maintaining the books and records of the corporation, and signing the corporate tax returns in that capacity.  The Brocatos conspired to defraud the United States for the purpose of impeding, impairing, and obstructing, the lawful government functions of the Internal Revenue Service (IRS) in the ascertainment, computation, assessment, and collection of federal income and other taxes for years 2012, 2013, and 2014. As part of that conspiracy, they filed false corporate and personal income tax returns for years 2012, 2013, and 2014.  To facilitate the scheme, the Brocatos cashed numerous checks from customers instead of depositing them into the company accounts.  They then underreported the income by failing to report the cash income amount on the various tax returns. According to the indictment, the underreported income amounted to $503,281 in 2012, $687,534 in 2013, and $513,498 in 2014. A federal grand jury returned an indictment on Sep. 4, 2019 charging Dick and Judith Brocato with tax violations.

          This case was investigated by the Internal Revenue Service Criminal Investigation Division and prosecuted by Assistant U.S. Attorneys Robert L. Rawls and John B. Ross. 

BEAUMONT, Texas – A 45-year-old Dayton, Texas man has pleaded guilty to a federal firearms violation in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today.

Michael Leonard Cupp pleaded guilty to possession of a firearm by a prohibited person today before U.S. District Judge Marcia A. Crone.              

               According to information presented in court, on Nov. 12, 2019, law enforcement officers executed an arrest warrant issued in Calcasieu Parish, LA, for Cupp at a residence in Dayton, Texas, in the Eastern District of Texas.  The warrant was related to ATM thefts from the Lake Charles, LA, area.  Immediately following the arrest, federal agents discovered a firearm in the living room of the residence in plain view.  The firearm was later determined to have been stolen.  Cupp had previously been convicted of engaging in organized criminal activity in Polk County, Texas, in 2004, and as a convicted felon is prohibited from owning or possessing firearms or ammunition.

               A federal grand jury returned an indictment charging Cupp with a firearms violation on Dec. 4, 2019. Under federal statutes, Cupp 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 a part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws.  Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce un violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.  The United States Attorney’s Office is prosecuting this case with support from the following Project Guardian partners: FBI, ATF, Liberty County Sheriff’s Office, Dayton Police Department, Calcasieu Parish Sheriff’s Office, and the FBI Lab in Quantico, VA. 

               More information about Project Guardian can be found at  https://www.justice.gov/projectguardian.

               This case is being prosecuted by Assistant U.S. Attorney Randall L. Fluke

BEAUMONT, Texas – A 42-year-old Beaumont, Texas man has been sentenced to federal prison for a bombing incident in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today.                 

          In October 2019, Jonathan Matthew Torres was found guilty at trial of using an explosive device to cause property damage and possession of an unregistered destructive device.  Torres was sentenced to 60 months in federal prison by U.S. District Judge Thad Heartfield on Sep. 8, 2020.

          “In the wake of the Austin bombings, Torres preyed upon Beaumont with his own explosives and a series of threats,” said U.S. Attorney Stephen J. Cox.  “Our federal, state, and local law enforcement partners took heroic action, reassuring the Beaumont community and using cutting-edge investigative techniques to ensure public safety.”

          “For several weeks, Jonathan Matthew Torres created fear, panic and insecurity for Beaumont residents,” said FBI Special Agent in Charge Perrye K. Turner.  “Having just experienced the destruction and loss of life carried out by the Austin package bomber the month prior, we were determined to not let the Beaumont community suffer a similar tragedy. Through the nonstop work of FBI agents, intelligence analysts, and our partners at the Beaumont Police Department, ATF, US Postal Inspection Service, and DPS, this individual was finally identified, arrested and will now serve his time in prison.”

          “Combining resources with our federal and state counterparts to solve cases involving the criminal misuse of explosives to keep our communities safe, remains one of ATF’s top priorities,” said ATF Special Agent in Charge Fred Milanowski.

          According to information presented in court, on April 26, 2018, federal agents discovered what appeared to be a homemade destructive device inside a U.S. Postal Service priority mail service box at a Starbucks on Dowlen Road in Beaumont.  Shortly after discovering the device, the Beaumont Police department began receiving cryptic postcards referencing the bombing.  One of those postcards read “DO YOU WANT BMT TO BECOME ANOTHER AUSTIN . . . .” This postcard appeared to reference serial bombings that occurred approximately a month prior, in Austin, Texas.  During the course of those Austin bombings, five package bombs exploded killing two people and injuring another five.  In the light of Torres’ reference to Austin, and the potential danger to the Beaumont community, federal law enforcement agencies dispatched dozens of agents and other personnel from around the country to assist the Beaumont Police Department and local law enforcement agencies in the investigation.  During the course of the investigation, the law enforcement partners deployed advanced investigative tools and tactics, including state-of-the-art forensic analysis to develop possible suspects in the case.

          In the midst of the investigation, on May 10, 2018, an explosion occurred at St. Stephen’s Episcopal Church on Delaware Street in Beaumont.  The explosion caused damage to St. Stephen’s administration building; fortunately, there were no injuries. After the St. Stephen’s bombing, law enforcement partners conducted a forensic analysis of the two devices and other evidence collected during the course of the investigation, resulting in the identification of Torres as a potential suspect.  On May 24, 2018, agents executed a search warrant at Torres’ residence in the 4400 block of El Paso Street in Beaumont, Texas.  Inside the residence, investigators recovered multiple containers of the same type of explosive material used in both previously discussed devices; postal boxes similar to the boxes used in the aforementioned devices; a receipt for the purchase of the type of string used in the device found at Starbucks; zip-ties similar to the type used in the device found at Starbucks; packing tape similar to the type used in the device found at Starbucks; and other components consistent with the destructive devices.  Agents arrested Torres without incident, and he was indicted by a federal grand jury on June 6, 2018.

          This case was investigated by the Beaumont Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, Federal Bureau of Investigation, U.S. Postal Inspection Service, and the Texas Department of Public Safety.  This case was prosecuted by Assistant U.S. Attorneys Russell James and Christopher T. Tortorice.

A former Senior Correctional Officer at the Federal Correctional Complex (FCC) in Beaumont, Texas, was sentenced yesterday in federal court for assaulting an inmate housed at the facility.

“The Justice Department is committed to prosecuting correctional officers who use their position of authority to harm others, as opposed to upholding the duties of their job and protecting the individuals in their care,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division.

“Correctional officers work hard every day to enforce the rules and ensure order within our prisons,” said U.S. Attorney Stephen J. Cox for the Eastern District of Texas.  “When one officer decides to violate those rules and disrupt that order, it undermines the important work of all correctional officers.”

Tavoris Bottley, 35, was sentenced by U.S. District Judge Thad Heartfield to 18 months in federal prison, followed by one year of supervised release. Bottley previously pleaded guilty on December 5, 2019, to one count of violating the civil rights of an inmate in his custody.

According to plea documents and information presented in court, on June 8, 2017, while on duty as a federal correctional officer at FCC Beaumont, Bottley punched A.A, an inmate, in the face and head multiple times without justification. Bottley admitted that he and his supervisor, Khristal Ford, intentionally unlocked and entered the secured cell where A.A. was being held with the intention of assaulting the inmate for being disrespectful and throwing a food tray. Bottley admitted that he then punched A.A., even though A.A. did not pose any threat at the time.

BOP Lieutenant Khristal Ford previously pleaded guilty on May 29, 2019, to aiding and abetting in the assault of A.A., and admitted to submitting written reports that omitted any reference to the assault in an effort to cover up the incident and make it appear justified. Ford was sentenced on January 8, 2020, to 24 months in prison.

This case was investigated by the Department of Justice, Office of the Inspector General, and was prosecuted by Trial Attorney Katherine G. DeVar of the Department of Justice’s Civil Rights Division and Assistant U.S. Attorney Michael A. Anderson of the Eastern District of Texas.

BEAUMONT, Texas – A 41-year-old Ft. Lauderdale, Florida woman has been sentenced to federal prison for drug trafficking charges in the Eastern District of Texas announced U.S. Attorney Stephen J. Cox today.                

               Shenita Denise Peterson pleaded guilty on Jan. 28, 2020, to possession with intent to distribute cocaine and was sentenced to 46 months in federal prison today by U.S. District Judge Michael Truncale.

               According to information provided in court, on Aug. 23, 2019, Peterson was stopped by Beaumont Police for a traffic violation on Interstate Highway 10 in Beaumont, Texas.  A search of the vehicle revealed approximately 45 individual kilograms of cocaine, which were concealed in the door panels of the vehicle.  Peterson was indicted by a federal grand jury on Sep. 4, 2019 and charged with drug trafficking violations.

               This case was investigated by the Beaumont Police Department and the U.S. Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney Robert L. Rawls.