Eastern District of Texas

PLANO, Texas – A 50-year-old Plano, Texas man has been sentenced to federal prison for violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.

            James Gerard Temme pleaded guilty on Oct. 11, 2017, to wire fraud and was sentenced to 78 months in federal prison on Oct. 16, 2018 by U.S. District Judge Marcia A. Crone.  Temme was also ordered to pay restitution in the amount of $2,933,667.48.

            According to information presented in court, in 2011, Temme engaged in wire fraud by inducing individuals to invest in a package of mortgages, misrepresenting that he had the ability to sell the package to the investors.  Temme provided a forged signature to induce the investment, eventually receiving over $3 million from the investors, when in fact he never actually sold the package of mortgages to the investors.  Temme was indicted by a federal grand jury on Sep. 21, 2016 and charged with federal violations.

“White collar theft often hurts victims just as much as thefts that happen with a gun,” said U.S. Attorney Joseph D. Brown. “This was a lot of money.  I am proud of the FBI investigators for pursuing it aggressively, and a prison sentence was wholly justified in this case.”

“Mr. Temme, knowingly acted in an unscrupulous and reckless manner to entice many innocent people into making investments that were unsound,” said Eric K. Jackson, FBI Special Agent in Charge of the Dallas Division. “Economic fraud is becoming common place, but we will continue to target the offenders and bring the appropriate charges, while protecting the citizens’ rights to fair and trustworthy services.”

This case was investigated by the Federal Bureau of Investigation and prosecuted by the U.S. Attorney’s Office for the Eastern District of Texas.

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BEAUMONT, Texas – The final defendant in a Jefferson County violent crime spree has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.

Darrion Tyrell Kimble, 19, pleaded guilty to Hobbs Act robbery, attempted Hobbs Act robbery and brandishing a firearm in relation to a crime of violence.  Kimble appeared before U.S. Magistrate Judge Keith Giblin today for his plea hearing. 

Tavori Terrell Jackson, 19, pleaded guilty on Oct. 16, 2018, to two counts of Hobbs Act robbery, attempted Hobbs Act robbery, and discharging a firearm during a crime of violence. 

Damien Earl Kimble, 35, pleaded guilty on Aug. 21, 2018, to Hobbs Act conspiracy.

Kamren Terezz Lewis, 19, pleaded guilty on Oct. 10, 2018, to attempted Hobbs Act robbery and Hobbs Act robbery.

                According to information presented in court,       on July 29, 2017, Jackson, and Darrion Kimble robbed Fertitta's Finer Foods, in Beaumont.  Both Jackson and Kimble brandished firearms, with Jackson jumping over the clerk’s counter and demanding money. Later that day, Jackson and Kimble attempted to rob a game room located in Beaumont, but were deterred and fled when a security guard fired three rounds at them.  Both Kimble and Jackson brandished firearms during the course of those robberies.  In early March 2018, Jackson and Kimble resurfaced, and with the assistance of Lewis and Damien Kimble, attempted to rob a game room in Port Arthur, Texas.  During the robbery, Jackson and Lewis, entered the game room and demanded money.  In an effort to intimidate patrons and employees of the game room, Jackson fired two rounds into the floor of the game room as Lewis stood as a lookout.  Darrion Kimble served as the group’s get-away driver.  Later that same day Jackson, Darrion Kimble, Damien Kimble, and Lewis robbed a Dollar General store in Beaumont, Texas.  During this robbery, Jackson and Lewis entered the store, with Lewis standing near the door as lookout.  Jackson jumped over the counter, brandished a firearm, and demanded money.  After his demands were met, Jackson and Lewis fled in different vehicles driven by Damien Kimble and Darrion Kimble.  During the investigation it was discovered that on July 26, 2017, Jackson robbed the Sunshine Grocery located in Port Arthur.  Jackson brandished a firearm during that robbery.  

                The Hobbs Act prohibits actual or attempted robbery that has a substantial effect on interstate and foreign commerce by reason of their repetition and aggregate effect on the economy. Under federal statutes, the defendants each face up to 20 years for each robbery violation and a minimum of seven additional years for each firearms violation.  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.  Sentencing hearings 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, the Beaumont Police Department, and the Port Arthur Police Department.  This case is being prosecuted by Assistant U.S. Attorneys Russell E. James and John B. Ross.

 

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BEAUMONT, Texas – A 43-year-old Beaumont, Texas woman has been sentenced for her part in a conspiracy targeting federal inmates and their families in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.

                        Tanya L. Richard pleaded guilty on June 14, 2018, to conspiracy to commit wire fraud today and was sentenced to 24 months in federal prison today by U.S. District Judge Marcia Crone. Richard was also ordered to pay restitution in the amount of $166,250.

                        According to information presented in court, while employed as an administrative employee of the Federal Correctional Complex in Beaumont, Richard was involved in a wide-spread fraud scheme targeting the families of federal inmates. Six persons, some of whom were former federal inmates, pleaded guilty to a similar charge last year in the same scheme and are currently serving federal prison sentences for their involvement.  The nationwide, six-year scheme defrauded the relatives of federal inmates by falsely representing that they could obtain reductions in their relatives’ sentences in exchange for the payment of cash and wire transfers of funds. The payments were falsely represented to be for the payment for a network of confidential informants who would make undercover drug transactions under the direction of the courts and prosecutors which would allow the incarcerated inmates to ask the court for reductions of sentences for providing substantial assistance to the government under the Federal Rules of Criminal Procedure. In reality, the money was spent for the personal benefit of the defendants and there was never any network of informants or undercover transactions. Federal inmates do not have to pay for substantial assistance motions for reductions of sentences which normally only require information to be provided by such inmates against co-defendants as well as trial testimony.

                        Richard’s role in the scheme included obtaining confidential information from federal court presentence reports of inmates and drafting false cooperation agreements for inmate families that appeared to be from federal prosecutors and U.S. Attorneys. Richard is a former common-law spouse of Alvin James Warrick who pleaded guilty to a similar charge in the scheme last year. The scheme resulted in losses to inmate families from across the nation of over $4 million dollars. Richard was placed on administrative leave from her position at the federal prison after her indictment in April 2018.

                        “This kind of fraud threatens the public’s trust in the justice system,” said U.S. Attorney Joseph D. Brown.  “The defendant targeted individuals and families who were vulnerable, and violated the trust that had been placed in her as a public servant.   It was important that there be a real consequence for that.”

“Defendant misled federal inmates and their family members about the sentencing reduction process, and defrauded these victims of millions of dollars.  Our office is committed to protecting the integrity of the criminal justice system and will work tirelessly to investigate these types of schemes,” said Monte A. Cason, Special Agent in Charge of the U.S. Department of Justice Office of the Inspector General’s Dallas Field Division.

                        “Ms. Richard used her position at the U.S. Bureau of Prisons for personal monetary gain, and is now being held accountable for her actions. The FBI's mission is to protect the civil rights of all individuals. Included under that protection are individuals who have been incarcerated and their families. After a thorough and deliberate investigation, the FBI Beaumont Resident Agency partnered with the U.S. Attorney's Office of the Eastern District of Texas to ensure a sobering punishment was delivered," said Senior Supervisory Resident Agent Minique Crump of the Beaumont FBI Resident Agency.

                        This case was investigated by the Federal Bureau of Investigation; Department of Justice, Office of the Inspector General; U.S. Marshals Service; Houston Police Department-Major Offenders Division; U.S. Attorney’s Offices in the Eastern District of Texas and Southern District of Florida. This case was prosecuted by Assistant U.S. Attorney Robert L. Rawls.

 

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PLANO, Texas – A 64-year-old former physician and 60-year-old registered nurse have been convicted of drug trafficking charges in the Eastern District of Texas, announced U.S. Attorney Joe Brown today.

Tad W. Taylor and his wife, Chia Jean Lee, also known as Chia Jean Lee-Taylor, of Plano, were found guilty by a jury on Oct. 10, 2018, of conspiracy to distribute and dispense Oxycodone, Amphetamine Salts (Adderall), Hydrocodone, Alprazolam (Xanax) and Promethazine with Codeine.  The jury reached a guilty verdict following a seven-day trial before U.S. District Judge Marcia Crone. 

According information presented at trial, during 2010 through 2012, Taylor and Lee owned and operated Taylor Texas Medicine, a medical clinic in Richardson, Texas. The defendants were convicted of conspiring to distribute large quantities of the above five drugs at their clinic to people that had no legitimate medical need. Taylor and Lee were indicted by a federal grand jury on Jan. 18, 2017 and charged with conspiracy to distribute, dispense, and possess with intent to distribute and dispense controlled substances.

“Doctors have a legal obligation to prescribe medication only for legitimate medical purposes,” said U.S. Attorney Joseph D. Brown.   “Too often, doctors prescribe to serve their own financial interests.  When those prescriptions involve opioid medication, that is dangerous and has contributed to the addiction problems that have plagued our country.  Doctors need to realize that their prescriptions are being watched.”

            As a result of their conviction, Taylor and Lee will forfeit $450,000.00 and all right, title and interest to any medical or nursing license or certifications.  Under federal statutes, Taylor and Lee each face a maximum of 20 years in federal prison for each charge 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 U.S. Drug Enforcement Administration and prosecuted by Assistant U.S. Attorneys Stevan Buys and Jonathan R. Hornok in the Eastern District of Texas.

 

SHERMAN, Texas – A 57-year-old Sherman, Texas doctor has pleaded guilty to federal drug distribution and fraud violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.

Howard Gregg Diamond pleaded guilty to conspiracy to possess with intent to distribute controlled substances and health care fraud and aiding and abetting today before U.S. Magistrate Judge Christine Nowak. 

According to information presented in court, beginning in 2010, Diamond wrote prescriptions for substances such as hydrocodone, oxymorphine, methadone, fentanyl, morphine, oxycodone, alprazolam, and zolpidem, without a legitimate medical purpose.  Specifically, on July 15, 2014, Diamond distributed or dispensed morphine, oxycodone, alprazolam and zolpidem to an individual that resulted in that individual’s death on July 25, 2014.  Additionally, Diamond had a claim for reimbursement for services submitted to Medicare claiming he treated a Medicare patient on Sep. 29, 2015, although he was in another state at that time.  Diamond was indicted by a federal grand jury on July 6, 2017.              

"Physicians like Dr. Diamond have been fueling the opioid crisis in this country," said U.S. Attorney Joseph D. Brown.  "The number of pills that he was putting out on the street was shocking.  And in this case, death was linked to those pills.  Undoubtedly, others' addictions were worsened, and families suffered as a result.  To reduce the impact of opioids, doctors have to take their obligations seriously, and if they don't, there will be more prosecutions like this."

This case is being prosecuted under the Organized Crime Drug Enforcement Task Force (OCDETF) as a joint investigation.  The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking organizations, weapons trafficking offenders, money laundering organizations, and those individuals responsible for the nation’s illegal drug supply. 

               At the plea hearing, Diamond agreed to a sentence of 20 years in federal prison, waived his right to appeal and forfeited his DEA registration number.  A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.

This case is being investigated by the U.S. Drug Enforcement Administration, Department of Health and Human Services, Internal Revenue Service, the Federal Bureau of Investigation, the Sherman Police Department, the Ellis County Sheriff’s Office, and the Texas Office of the Attorney General.  This case is being prosecuted by Assistant U.S. Attorneys Heather Rattan and Maureen Smith.

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TYLER, Texas – A 33-year-old pilot, formerly of Kemah, Texas, has been sentenced to federal prison for violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.

            Theodore Robert Wright, III, pleaded guilty on Dec. 7, 2017, to conspiracy to commit wire fraud and conspiracy to commit arson and was sentenced to 65 months in federal prison today by U.S. District Judge Ron Clark.  Wright was also ordered to pay restitution in the amount of $988,544.83. 

            According to information presented in court, Wright led a multi-jurisdictional fraud and arson scheme that spanned from Hawaii to the Gulf of Mexico and involved the destruction of various luxury goods, including vehicles, aircraft, and vessels.  Wright and his co-conspirators, Shane Gordon, 46, and Raymond Fosdick, 42, both of Houston, and Edward Delima, 42, of Honolulu, Hawaii, acquired luxury goods and obtained insurance coverage for those goods in amounts exceeding their purchase prices.  Wright and his co-conspirators then devised and carried out schemes to destroy those goods and defraud insurance companies.

The various assets destroyed in the scheme included a 1966 Beechcraft Baron, a 2008 Lamborghini Gallardo, a 1971 Cessna 500, and a 1998 Hunter Passage.  The Beechcraft Baron made an emergency landing in the Gulf of Mexico, sank in deep water, and was not recovered.  The Lamborghini Gallardo crashed into a ditch full of water, causing the vehicle to flood.  The Cessna 500 was completely destroyed when Fosdick set it on fire at Wright’s direction at an airport in Athens, Texas.  The Hunter Passage sank in a marina in Hawaii.  Fraudulent insurance claims were filed in relation to each of these incidents.  Wright and his co-defendants also filed a fraudulent $1 million personal injury lawsuit related to the crash in the Gulf of Mexico.  The suit was settled for $100,000.

On May 17, 2017, Wright, Gordon, Fosdick, and Delima were charged with various offenses related to their conduct in the scheme in the Eastern District of Texas.  Wright’s co-conspirators have all pleaded guilty. Delima pleaded guilty to conspiring to commit wire fraud and was sentenced to a five-year term of probation.  Fosdick pleaded guilty to conspiring to commit wire fraud and conspiring to commit arson and on Jan. 24, 2018, was sentenced to 39 months in federal prison.  Gordon pleaded guilty to making false statements to a federal agent and was sentenced to 24 months in federal prison today and ordered to pay restitution in the amount of $440,000.

“This kind of fraud causes everyone to pay higher insurance rates,” said U.S. Attorney Joseph D. Brown.  “Just having those nice things destroyed is a shame.  And for someone to cheat and make money off of it is particularly troubling.”

“Fraud victimizes businesses and costs Americans billions of dollars every year,” said ATF Special Agent in Charge Jeffrey C. Boshek II. “The deception carried out by Mr. Wright is particularly alarming due to the callous use of arson and staged emergencies which have the potential to place the public and first responders in danger.”

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the FAA Law Enforcement Assistance Program, the Texas Department of Insurance, and the National Insurance Crime Bureau.  It was prosecuted by Assistant U.S. Attorneys Nathaniel C. Kummerfeld and L. Frank Coan, Jr. with the assistance of Assistant U.S. Attorney Robert Wells.

TEXARKANA, Texas – A 79-year-old Hooks, Texas, man has pleaded guilty to federal firearms violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.

Robert D. Whittington, III, a retired Lt. Colonel with the U.S. Army, pleaded guilty to being a felon in possession of a firearm and felon in possession of ammunition today before U.S. Magistrate Judge Caroline Craven.           

          According to information presented in court, on Mar. 7, 2018, federal agents executed a search warrant at Whittington’s residence on Avenue D in Hooks, Texas.  During the search, officers discovered 119 firearms and over 19,000 rounds of ammunition.  Whittington was convicted of terrorizing on Jan. 3, 2011 in Bossier Parish, LA, and as a convicted felon is prohibited from owning or possessing firearms or ammunition.  Whittington was indicted by a federal grand jury in the Eastern District of Texas on May 16, 2018.  

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

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

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Bossier Parish Sheriff’s Office and prosecuted by Assistant U.S. Attorney Jim Noble.

BEAUMONT, Texas – Two Beaumont brothers have been indicted on federal violations in connection with a shooting in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.                 

Brandon Oneal Dodd, 33, was indicted by a federal grand jury on Oct. 3, 2018, and charged with conspiracy to commit a Hobbs Act robbery, attempted Hobbs Act robbery, and aiding and abetting the discharge of a firearm during a crime of violence. 

Darryl James Dodd, 36, was indicted and charged with being a felon in possession with a firearm.

According to information presented in court, on Aug. 25, 2018, Brandon Dodd and two co-conspirators approached the Valero Fuel Mart located at 1481 IH-10 East in Beaumont with intentions of robbing it.  The men found an employee of the convenience store in the parking lot near his car and forced him back into the store at gunpoint.  One of the men jumped on the counter, pointed a gun at the store clerk and demanded money.  The clerk resisted and was shot in the chest as the three men fled the scene.  Although it is not believed Darryl Dodd was present during the shooting, it was revealed during the investigation that Darryl Dodd, a convicted felon, had possessed the firearm that was used in the attempted robbery.

If convicted, Brandon Dodd faces up to 20 years in federal prison.  Darryl Dodd faces up to 10 years in federal prison.

This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Beaumont Police Department, and the Jefferson County District Attorney’s Office and prosecuted by Assistant U.S. Attorney Russell E. James.

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.

BEAUMONT, Texas –A 57-year-old Salvadoran national has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.

Mario Obdulio Orellana, a resident of Shelby County, Texas, pleaded guilty on Sep. 19, 2018, to making a false statement in application for passport before U.S. Magistrate Judge Zack Hawthorn.

According to information presented in court, on Oct. 6, 2017, Orellana made a false statement in an application for a United States passport by claiming to be a United States citizen.    

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

This case is being investigated by the U.S. Department of State, Bureau of Diplomatic Security and prosecuted by Assistant U.S. Attorney Lauren Gaston.

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MARSHALL, Texas - A 20-year-old Mexican national has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.

Benigno Guzman Ortiz pleaded guilty on May 21, 2018, to possession with intent to distribute more than 500 grams of methamphetamine and was sentenced to 58 months in federal prison by U.S. District Judge Rodney Gilstrap.

                According to information presented in court, on Sep. 29, 2017, Ortiz was stopped for a traffic violation in Cass County, Texas.  During the stop, law enforcement officers requested consent to search the van Ortiz was driving.  Ortiz gave consent and the search revealed 15 bundles of methamphetamine concealed within the rear hatch of the van.  Ortiz was arrested and admitted that he had been recruited to drive the van containing methamphetamine from Houston to Texarkana, Arkansas.  Ortiz was indicted by a federal grand jury on Oct. 18, 2017, and charged with drug trafficking violations. 

                This case was investigated by the Texas Department of Public Safety Highway Patrol and Criminal Investigations Division and prosecuted by Assistant U.S. Attorney Jim Noble.

BEAUMONT, Texas – A 33-year-old Beaumont, Texas woman has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.

Ashley Haley pleaded guilty to an Information charging her with conspiracy to commit extortion under color of official right today before U.S. Magistrate Judge Keith F. Giblin.

According to information presented in court, since April 12, 2010, Haley was employed as a parole officer with the Texas Department of Criminal Justice out of the Beaumont office.  Haley’s job duties included supervising parolees who were released from prison.  Mandatory conditions of parole for parolees include not using any illegal narcotics, not violating any laws, and submitting to random urinalyses. Haley had access to confidential lists of parolees who would be subject to random urinalyses and provided a parolee the confidential urinalyses lists.  In conducting samples for the random urinalyses, Haley also allowed persons other than parolees to submit urine samples for testing.  In exchange, Haley received monthly cash payments and other items, such as automobile tires, from parolees

                “We place special trust in parole officers and it weakens the entire criminal justice system when one is corrupt,” said U.S. Attorney Joseph D. Brown. “We will prosecute any public official who abuses that trust placed in them.”

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

This case is being investigated by the Texas Department of Criminal Justice-OIG, Beaumont Police Department, U.S. Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.  This case is being prosecuted by Assistant U.S. Attorney Christopher T. Rapp.

PLANO, Texas – A 58-year-old Fort Worth, Texas man has been found guilty of federal violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.

                Wayne Alan Watson was found guilty of three counts of armed bank robbery today by a jury following a three-day trial before U.S. District Judge Marcia A. Crone. 

                According to information presented in court, Watson robbed three credit unions in the Eastern District of Texas: the City Credit Union located in Gainesville, Texas, on Oct. 16, 2017; the Altra Federal Credit Union located in Tyler, Texas, on Dec. 1, 2017; and the Texoma Educators Federal Credit Union in Denison, Texas, on Dec. 19, 2017.  In each of the robberies, Watson displayed a gun and by force, violence, and intimidation robbed employees of the credit unions of currency.  Additional robberies linked to Watson in Austin, Texas, and Wichita Falls, Texas, which occurred in January of 2018, led to his identification as the serial robber.  A search warrant was executed at Watson’s residence in Fort Worth on Feb. 13, 2018, where the vehicle used in two of the robberies, a 2015 red Volkswagen Jetta, was located, in addition to several articles of clothing Watson wore in each of the robberies.  Watson was indicted by a federal grand jury on Mar. 14, 2018 and charged in the Eastern District of Texas with federal violations.

                Under federal statutes, Watson faces a maximum of 20 years in federal prison for each charge 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, the Texas Department of Public Safety-Texas Rangers Division, Gainesville Police Department, Tyler Police Department, Denison Police Department, Austin Police Department, and the Wichita Falls Police Department.  The case was prosecuted by Assistant U.S. Attorneys Lesley Davis Brooks and Maureen Smith.

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SHERMAN, Texas – A 46-year-old Richardson, Texas, man has been sentenced to federal prison for violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.

     Christopher Anekwe pleaded guilty on Dec. 11, 2017 to the sale of stolen treasury checks, theft of government property, and aggravated identity theft and was sentenced to 60 months in federal prison on Sep. 11, 2018 by U.S. District Judge Amos Mazzant. Anekwe was also ordered to pay restitution in the amount of $141,469.

     According to information presented in court, Anekwe participated in a scheme using stolen personal identifying information to file false and fraudulent IRS tax returns, causing the government to issue refund checks based on the fraudulent information.  On July 30, 2013, an associate of Anekwe sold three checks, which had been obtained from Anekwe.  A federal grand jury returned an indictment on July 13, 2016, charging Anekwe with federal violations.

     "The U.S. Attorney's Office and Internal Revenue Service-Criminal Investigation take seriously the crimes of theft of government funds, tax return fraud, and identity theft,” said U.S. Attorney Joseph D. Brown.  “Each year millions of individuals are affected by this crime, and many millions of dollars are stolen from the federal treasury by criminals using the identifying information of innocent citizens, who are then affected by this crime as well.  This office will continue to coordinate with law enforcement agencies including the IRS, in spearheading the investigation and prosecution of these crimes."

     “The defendant who perpetrated this scheme defrauded the government and the taxpaying public,” said Kevin Caramucci, IRS Assistant Special Agent in Charge of the Dallas Field Office.  “Stealing identities is a serious crime that hurts innocent taxpayers.  Today’s sentence should serve as a strong warning to those individuals who seek to willfully defraud the United States Treasury and blatantly disregard the victims of their schemes.”

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

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BEAUMONT, Texas – A pair of Mexican national brothers have pleaded guilty to firearms charges in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.

Julio Ceasar Martinez-Rivas, 43, pleaded guilty to conspiracy to traffic firearms today before U.S. Magistrate Judge Zack Hawthorn.  His brother, 31-year-old Eric Martinez-Rivas, pleaded guilty to the same charge on Sep. 5, 2018.

                According to information presented in court, between March 2014 and March 2015, the brothers operated a firearms trafficking organization from their apartment in Houston, using money from Mexico to smuggle firearms from the United States to Mexico. To acquire firearms, the Martinez-Rivas brothers recruited co-conspirators from the Houston-area and used electronic money transfers from co-conspirators in Irapuato, Guanajuato, Mexico, to fund the scheme. The brothers arranged for electronic money transfers to be sent directly to the co-conspirators in the Houston area, who in turn used the money to purchase high caliber firearms from licensed and unlicensed firearms dealers in the Eastern District of Texas and elsewhere in the United States.  

                On June 17, 2015, the Martinez-Rivas brothers and five others were indicted by a federal grand jury in the Eastern District of Texas and charged with conspiracy to traffic firearms.  The five co-conspirators have previously pleaded guilty and are serving federal prison sentences.

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

                This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Department of Homeland Security–ICE, and the Houston Police Department.  This case is being prosecuted by Assistant U.S. Attorneys John B. Ross and Randall L. Fluke.

 

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BEAUMONT, Texas – A 21-year-old Mexican national living in Liberty, Texas, has been indicted and charged with federal violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.             

Juan Carlos Saucedo-Meza was indicted by a federal grand jury today and charged with kidnapping.

According to information presented in court, beginning on Aug. 24, to Aug. 25, 2018, Saucedo-Meza is alleged to have kidnapped a woman from Liberty, Texas and transported her to Lake Charles, LA, against her will.  In connection with this incident, Saucedo-Meza is facing charges of aggravated sexual assault and aggravated kidnapping in Jefferson County, Texas; aggravated kidnapping in Liberty County, Texas; and 2nd degree kidnapping in Calcasieu Parish, Louisiana. 

If convicted, Saucedo-Meza faces up to life in federal prison.

This case is being investigated by the Jefferson County Sheriff’s Office, the Liberty County Sheriff’s Office, the Lake Charles Police Department, and the Jefferson County District Attorney’s Office.  This case is being prosecuted by Assistant U.S. Attorney Christopher T. Tortorice.

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.

PLANO, Texas – Seven ambulance industry defendants have agreed to pay the government a total of over $21 million to settle a False Claims Act lawsuit alleging that they knowingly submitted claims to the Medicare and Medicaid programs that violated the Anti‑Kickback Statute, announced Eastern District of Texas U.S. Attorney Joseph D. Brown today.

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

The settlements announced today resolve allegations brought in a whistleblower action filed under the False Claims Act in the U.S. District Court for the Eastern District of Texas by Stephen Dean.  Dr. Dean alleged that East Texas Medical Center Regional Healthcare System, Inc. and East Texas Medical Center Regional Health Services, Inc. (together, “the ETMC Defendants”), and their affiliated ambulance company, Paramedics Plus, LLC (“Paramedics Plus”), offered kickbacks to several municipal entities to secure their lucrative ambulance business, including Emergency Medical Services Authority (“EMSA”), Alameda County, California, and Pinellas County Emergency Medical Services Authority in Florida (“Pinellas EMSA”).  The False Claims Act authorizes private parties to file suit for false claims on behalf of the United States, and permits the United States to intervene in such suits, as it did here in part. 

Prior to intervening in Dr. Dean’s lawsuit, the United States settled with Alameda County and Pinellas EMSA.  Alameda County agreed to pay the government $50,000, and Pinellas EMSA agreed to pay the United States $66,000, plus an additional $5,200 to the State of Florida.  After filing suit against the ETMC Defendants, Paramedics Plus, EMSA, and its former president and CEO, Herbert Stephen Williamson, the United States settled with the ETMC Defendants and Paramedics Plus for $20.649 million and EMSA for $300,000.  Williamson agreed to pay the United States and the State of Oklahoma $80,000.  The latter two settlements were based on the defendants’ ability to pay. 

“The United States’ efforts in this case ended abusive practices in the ambulance industry,” said Acting Assistant Attorney General Chad A. Readler, for the Justice Department’s Civil Division.  “These settlements demonstrate our commitment to ensuring that health care decisions are made based on patient needs, not a health care provider’s financial interests.”

“Paramedics Plus paid millions of dollars in illegal inducements over the course of a number of years,” said U.S. Attorney Joseph D. Brown.  “Williamson allegedly received gifts and also directed Paramedics Plus to make political contributions to local Oklahoma politicians, which EMSA could not do on its own.  Sophisticated health care companies do not simply give away millions of dollars to referral sources without expecting something in exchange.  Quid pro quo arrangements for the referral of health care business are illegal.”

The matters alleged in Dr. Dean’s action were investigated by the U.S. Attorney’s Office for the Eastern District of Texas, the Civil Division of the U.S. Department of Justice, the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), and the states of California, Florida, Indiana, and Oklahoma.  Assistant U.S. Attorneys James Gillingham and Joshua Russ as well as Department of Justice Trial Attorney Claire Norsetter primarily handled the matter for the United States.

The False Claims Act claims resolved by this settlement are allegations only and there has been no determination of liability.  The case is captioned United States ex rel. Dean v. Paramedics Plus, LLC, et al., 4:14-CV-203.  Dr. Dean will receive over $4.9 million as his share of the settlements.

 

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Seven ambulance industry defendants have agreed to pay the government a total of over $21 million to settle a False Claims Act lawsuit alleging that they knowingly submitted claims to the Medicare and Medicaid programs that violated the Anti‑Kickback Statute, the Justice Department announced today.

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

The settlements announced today resolve allegations brought in a whistleblower action filed under the False Claims Act in the U.S. District Court for the Eastern District of Texas by Stephen Dean.  Dr. Dean alleged that East Texas Medical Center Regional Healthcare System, Inc. and East Texas Medical Center Regional Health Services, Inc. (together, “the ETMC Defendants”), and their affiliated ambulance company, Paramedics Plus, LLC (“Paramedics Plus”), offered kickbacks to several municipal entities to secure their lucrative ambulance business, including Emergency Medical Services Authority (“EMSA”), Alameda County, California, and Pinellas County Emergency Medical Services Authority in Florida (“Pinellas EMSA”).  The False Claims Act authorizes private parties to file suit for false claims on behalf of the United States, and permits the United States to intervene in such suits, as it did here in part. 

Prior to intervening in Dr. Dean’s lawsuit, the United States settled with Alameda County and Pinellas EMSA.  Alameda County agreed to pay the government $50,000, and Pinellas EMSA agreed to pay the United States $66,000, plus an additional $5,200 to the State of Florida.  After filing suit against the ETMC Defendants, Paramedics Plus, EMSA, and its former president and CEO, Herbert Stephen Williamson, the United States settled with the ETMC Defendants and Paramedics Plus for $20.649 million and EMSA for $300,000.  Williamson agreed to pay the United States and the State of Oklahoma $80,000.  The latter two settlements were based on the defendants’ ability to pay. 

“The United States’ efforts in this case ended abusive practices in the ambulance industry,” said Acting Assistant Attorney General Chad A. Readler for the Justice Department’s Civil Division.  “These settlements demonstrate our commitment to ensuring that health care decisions are made based on patient needs, not a health care provider’s financial interests.”

“Paramedics Plus paid millions of dollars in illegal inducements over the course of a number of years,” said U.S. Attorney Joseph D. Brown for the Eastern District of Texas.  “Williamson allegedly received gifts and also directed Paramedics Plus to make political contributions to local Oklahoma politicians, which EMSA could not do on its own.  Sophisticated health care companies do not simply give away millions of dollars to referral sources without expecting something in exchange.  Quid pro quo arrangements for the referral of health care business are illegal.”

The matters alleged in Dr. Dean’s action were investigated by the U.S. Attorney’s Office for the Eastern District of Texas, the Civil Division of the U.S. Department of Justice, the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), and the states of California, Florida, Indiana, and Oklahoma. 

The False Claims Act claims resolved by this settlement are allegations only and there has been no determination of liability.  The case is captioned United States ex rel. Dean v. Paramedics Plus, LLC, et al., 4:14-CV-203.  Dr. Dean will receive over $4.9 million as his share of the settlements.

BEAUMONT, Texas – A 45-year-old Beaumont, Texas man has been found guilty of child pornography violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.

               Willie Lampley was found guilty of receipt of child pornography and possession of child pornography today by a jury following a two-day trial before U.S. District Judge Marcia A. Crone. 

               According to information presented in court, beginning in July 2017, Lampley began searching for and downloading child pornography using Peer-to-Peer file sharing networks.  Lampley stored more than 300 videos and 100 images of children being sexually abused on the hard-drive of his computer.  Some of the material depicted children as young as infants and toddlers. 

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

This case was investigated by the Beaumont Police Department and Homeland Security Investigations and prosecuted by Assistant U.S. Attorneys Russell E. James and Christopher T. Tortorice.

SHERMAN, Texas – A 47-year-old Minnesota man has been sentenced to 24 years in federal prison for violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.

               Derek Mylan Alldred pleaded guilty on Dec. 21, 2017, to mail fraud and two counts of aggravated identity fraud.  Alldred was sentenced to the maximum of 288 months in federal prison today by U.S. District Judge Amos Mazzant.  Alldred was also ordered to pay restitution in the amount of $254,892.41. 

               According to information presented in court, in April 2017, in The Colony, Texas, Alldred began a relationship with a victim that he met online through a dating website.  Alldred presented himself as a United States Navy pilot, a Department of Defense analyst, and a professor at Southern Methodist University.  He was using the name Richard Tailor.  During the time he was in the relationship with the victim Alldred used her credit card to order various items and have them delivered to him at her residence.  He also used the card to make various charges in The Colony, Texas.  After the victim became suspicious, she discovered Alldred's real identity of Derek Mylan Alldred.  By this time, Alldred had fraudulently charged over $12,000.00 on her credit card.  The victim filed a police report prompting an investigation of the fraudulent conduct.  The investigation revealed that during the time Alldred was defrauding the victim in The Colony, he was also in a relationship with another victim in Dallas.  Alldred would tell one victim he had to go out of town to work as a pilot, and then have the other victim pick him up at the airport.  Alldred also stole money from the second victim.  Investigators were able to determine Alldred committed this same offense across the United States.  Eventually, at least 25 victims were located in California, Nevada, Minnesota, and Hawaii.

               “This defendant left a trail of tears, emotional devastation, and financial ruin behind him,” said U.S. Attorney Joseph D. Brown.  “It is clear that he will never change, and we expect his sentence to reflect that.  We are glad we were able to get some level of justice for these women.”              

This case was investigated by the Naval Criminal Investigative Service (NCIS), The Colony Police Department, and the Fort Worth Police Department’s Fugitive Unit.  This case was prosecuted by Assistant U.S. Attorney William R. Tatum.

LUFKIN, Texas - A 35-year-old Channelview, Texas man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.

Clarence Davis Winslow, II, pleaded guilty on Sep. 20, 2017, to possession with intent to distribute a controlled substance and was sentenced to 120 months in federal prison by U.S. District Judge Ron Clark on Aug. 20, 2018.  Winslow was also ordered to pay restitution in the amount of $46,589.74.

                According to information presented in court, on March 30, 2017, a law enforcement officer in Nacogdoches County, Texas stopped a vehicle, driven by Winslow, for a traffic violation.  During the stop, the officer called for a canine and ran the identifications of the passengers through law enforcement databases.  The information showed a possible burglary warrant outstanding from another state.  During a search of the vehicle, the officer located a laundry bag containing numerous prescription pills still in the bottles.  These pills were determined to have been stolen in a burglary the previous night of a Walgreens pharmacy in Arkansas.  Arkansas police spoke with the Nacogdoches Sheriff’s Office and stated they were currently investigating two Walgreens burglaries in Little Rock.  A check with Walgreens records determined the pills recovered in the traffic stop were from both Walgreens burglaries.  A total of 6,403 oxycodone pills, in various dosage units, were recovered.  Winslow was indicted on Sep. 20, 2017 and charged with drug trafficking violations.  

                This case was investigated by the Nacogdoches County Sheriff’s Office and the U.S. Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney Paul A. Hable.

 

SHERMAN, Texas- Eastern District of Texas U.S. Attorney Joseph D. Brown touted today’s announcement from the Department of Justice and U.S. Drug Enforcement Administration (DEA) proposing a reduction for controlled substances that may be manufactured in the U.S. next year. Consistent with President Trump’s “Safe Prescribing Plan” that seeks to “cut nationwide opioid prescription fills by one-third within three years,” the proposal decreases manufacturing quotas for the most six frequently misused opioids for 2019 by an average ten percent as compared to the 2018 amount. The Notice of Proposed Rulemaking (NPRM) marks the third straight year of proposed reductions, which help reduce the amount of drugs potentially diverted for trafficking and used to facilitate addiction.

            “To address the opioid crisis in America, we have to attack not only those who illegally distribute drugs, but we also have to address the flood of narcotics from manufacturers and pharmacies that make it so easy for addicted people to get access,” said U.S. Attorney Joseph D. Brown.  “I am glad to see some movement on reducing the number of pills that have contributed to so many deaths.”

On July 11, 2018, the Justice Department announced that DEA was issuing a final rule amending its regulations to improve the agency’s ability consider the likelihood of whether a drug can be diverted for abuse when it sets annual opioid production limits. The final rule also promotes greater involvement from state attorneys general, and today’s proposed reduction will be sent to those offices.

In setting the aggregate production quote (APQ), DEA considers data from many sources, including estimates of the legitimate medical need from the Food and Drug Administration; estimates of retail consumption based on prescriptions dispensed; manufacturers’ disposition history and forecasts; data from DEA’s own internal system for tracking controlled substance transactions; and past quota histories.

The DEA has proposed to reduce more commonly prescribed schedule II opioids, including oxycodone, hydrocodone, oxymorphone, hydromorphone, morphine, and fentanyl:

 

 

 

 

 

Ultimately, revised limits will encourage vigilance on the part of opioid manufacturers, help DEA respond to the changing drug threat environment, and protect the American people from potential addictive drugs while ensuring that the country has enough opioids for legitimate medical, scientific, research, and industrial needs.

"The opioid epidemic that we are facing today is the worst drug crisis in American history," Attorney General Jeff Sessions said. "President Trump has set the ambitious goal of reducing opioid prescription rates by one-third in three years. We embrace that goal and are resolutely committed to reaching it. According to the National Prescription Audit, we have already made significant progress in reducing prescription rates over the past year. Cutting opioid production quotas by an average of ten percent next year will help us continue that progress and make it harder to divert these drugs for abuse. The American people can be confident that federal law enforcement and the Trump administration are taking action to protect them from dangerous drugs.  These smarter limits bring us one big step closer to President Trump's goal of finally ending this unprecedented crisis. I congratulate Acting Administrator Uttam Dhillon and his team for taking action.”

“We’ve lost too many lives to the opioid epidemic and families and communities suffer tragic consequences every day,” said DEA Acting Administrator Uttam Dhillon. “This significant drop in prescriptions by doctors and DEA’s production quota adjustment will continue to reduce the amount of drugs available for illicit diversion and abuse while ensuring that patients will continue to have access to proper medicine.”

Once the aggregate quota is set, DEA allocates individual manufacturing and procurement quotas to those manufacturers that apply for them. DEA may revise a company’s quota at any time during the year if change is warranted due to increased or decreased sales or exports, new manufacturers entering the market, new product development, or product recalls.

When Congress passed the Controlled Substances Act, the quota system was intended to reduce or eliminate diversion from “legitimate channels of trade” by controlling the quantities of the basic ingredients needed for the manufacture of controlled substances.

The Proposed Aggregate Production Quotas for schedule I and II controlled substances published in the Federal Register reflects the total amount of controlled substances necessary to meet the country’s medical, scientific, research, industrial, and export needs for the year and for the establishment and maintenance of reserve stocks. DEA establishes an APQ for more than 250 schedule I and II controlled substances annually.

In 2016, the Centers for Disease Control and Prevention issued guidelines to practitioners recommending a reduction in the prescribing of opioid medications for chronic pain. DEA and its federal partners have increased efforts in the last several years to educate practitioners, pharmacists, manufacturers, distributors, and the public about the dangers associated with the misuse of opioid medications and the importance of proper prescribing.

 

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BEAUMONT, Texas – The final six defendants in a Jefferson County drug trafficking conspiracy have pleaded guilty to violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.

Eric Paul Coleman, 32; Clayton Devonne Howard, 41; Jason Wright, 32; Leroy Hills, 33; and Arthur Jenkins, 46; all of Beaumont, each pleaded guilty to conspiracy to possess with intent to distribute crack cocaine.  Coleman also pleaded guilty to conspiracy to commit money laundering, carrying a firearm during a drug trafficking offense, and use of fire to commit a federal felony (aiding and abetting.)  Jenkins also pleaded guilty to conspiracy to carry a firearm during a drug trafficking offense.  Ivy Chatman, 31, of Beaumont, pleaded guilty to conspiracy to use fire to commit a federal felony (aiding and abetting.)

The plea hearings were held on Aug. 14, 2018, before U.S. Magistrate Judge Keith Giblin.

            According to information presented in court, since December 2012, the defendants were involved in a drug trafficking organization that distributed both powder and crack cocaine in the Beaumont, Texas, area.  Eric Coleman received powder cocaine from Christopher Dudley, who brought it to Beaumont from Houston. Clayton Howard assisted Dudley in transporting cocaine from Houston to Beaumont.  Coleman distributed both powder and crack cocaine, and manufactured crack cocaine, from residences he owned in Beaumont’s North End.  He did the same from the home of his mother, Minnie Coleman, who also helped Eric Coleman distribute powder and crack cocaine.  Jordan Marshall, Arthur Jenkins, Patrice Stoker, Jason Wright, Lee Roy Hills and Ivy Chatman participated in distributing Coleman's narcotics.

            Eric Coleman, Minnie Coleman, and Patrice Stoker agreed to take cash proceeds from the narcotic sales and deposit them in a bank.  To protect his narcotics operation, Coleman and associates, such as Jordan Marshall and Lee Roy Hills, carried firearms to protect territory from rival drug dealers.  Coleman also agreed to use physical violence to aid in his narcotics operation.  On multiple occasions Coleman agreed to pay set fees to Arthur Jenkins to physically assault customers who were behind on drug debt payments.  On Nov. 28, 2017, Coleman agreed to pay Arthur Jenkins $2,000 to kill an unknown person.  Coleman told Jenkins he wanted the person dead and instructed Jenkins to shoot through the side of the person's vehicle rather than the front.  The defendants were indicted by a federal grand jury on Jan. 10, 2018 and charged with multiple drug trafficking and firearms related violations.

“These were major players in the drug world in Southeast Texas,” said Eastern District of Texas U.S. Attorney Joseph D. Brown.  “This was a violent group, and it is good to get them off the street.  We appreciate the cooperation from all of the local and state partners that helped make this case.”

“The investigation and conviction of these individuals is a great example of what can occur when local and federal law enforcement agencies work together to combat major drug trafficking and violent crimes,” said Beaumont Police Chief James P. Singletary.  “Some of these individuals were the most dangerous narcotic traffickers we had in Beaumont and in the surrounding areas. The Beaumont Police Department is proud of its relationship with the U.S. Attorney's Office in the Eastern District of Texas and all of the federal agencies we work with on a daily basis.”

            Under federal statutes, the defendants each face at least 10 years and up to life in federal prison at sentencing.  The minimum 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.  Sentencing hearings will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.

This case is being prosecuted under the Organized Crime Drug Enforcement Task Force (OCDETF) as a joint investigation.  The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking organizations, weapons trafficking offenders, money laundering organizations, and those individuals responsible for the nation’s illegal drug supply. 

            This case was investigated by the Drug Enforcement Administration, the Beaumont Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Beaumont Fire Department, the Baytown Police Department, and the Texas Department of Public Safety .  This case is being prosecuted by Assistant U.S. Attorney Christopher T. Rapp.

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BEAUMONT, Texas – A 42-year-old Honduran national illegally in the United States has been sentenced to federal prison for firearms violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.

Santos Alfredo Paz-Ruiz pleaded guilty on May 10, 2018, to being an illegal alien in possession of a firearm and was sentenced to 33 months in federal prison today by U.S. District Judge Marcia Crone.           

          According to information presented in court, on Nov. 4, 2017, Paz-Ruiz was confronted by an off-duty law enforcement officer for driving erratically on a rural road in Hardin County, Texas.  During the confrontation, Paz-Ruiz brandished a hand gun and fired a shot.  Paz-Ruiz was then tackled by the off-duty officer’s son and a struggle ensued.  During the struggle, the firearm discharged striking the off-duty officer’s son in the ankle.  The injury was not life-threatening.  Further investigation revealed Paz-Ruiz was illegally in the United States and prohibited from owning or possessing a firearm.  Paz-Ruiz was indicted by a federal grand jury on Jan 10, 2018 and charged with firearms violations.

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

This case was investigated by the Department of Homeland Security/Homeland Security Investigations and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorney Randall L. Fluke.

 

TYLER, Texas – A 65-year-old Mineola, Texas man has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.

Travis E. Grindle pleaded guilty to theft of government funds today before U.S. Magistrate Judge John D. Love.

According to information presented in court, Grindle retired as a brakeman from Union Pacific Railroad and since 1994, he has been receiving federal disability payments from the Railroad Retirement Board.  Recipients of such government benefits are obligated to report certain events that may affect continued eligibility, including the performance of any work or improvement of condition.  For the years 2011-2015, Grindle failed to report that income from his truck leasing business exceeded annual earning limits for receipt of his disability benefits.

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

This case was investigated by the U.S. Railroad Retirement Board Office of Inspector General and prosecuted by Assistant U.S. Attorney Frank Coan.

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BEAUMONT, Texas - U.S. Attorney Joseph D. Brown announced today that five individuals have been arrested following a lengthy investigation into drug trafficking in the Eastern District of Texas.

                On Aug. 7, 2018, a combined task force of federal, state and local law enforcement executed federal arrest and search warrants in Beaumont, Port Neches, and Silsbee, Texas as the result of a joint investigation by the U.S. Drug Enforcement Administration and the Jefferson County Sheriff’s Office Joint Narcotics Task Force.

The operation resulted in the arrest of five defendants named in an indictment returned by a federal grand jury on July 12, 2018.  According to the indictment, from March 2017 through December 2017, the defendants were involved in a drug trafficking organization that conspired to distribute methamphetamine in Jefferson, Hardin and Orange counties.  Those arrested and named in the indictment are:

Brandon Robinson, 33, of Beaumont; Gedrick Morrissey, 27, of Beaumont; Roshawn Butler, 35, of Silsbee; Rudy Polanco, 44, of Groves; and
Jeremy Ross, 35, of Port Neches, Texas.

The defendants are charged with conspiracy to possess with the intent to distribute methamphetamine. They are scheduled to make initial appearances before U.S. Magistrate Judge Keith F. Giblin on those charges today.  If convicted, they face from 10 years to life in federal prison. 

This case is being investigated by the U.S. Drug Enforcement Administration, the Jefferson County Sheriff’s Office Joint Narcotics Task Force, and the Beaumont Police Department and is being prosecuted by Assistant U.S. Attorney Christopher T. Rapp.

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

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TYLER, Texas – A 33-year-old Jacksonville, Texas man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.

Carlos Brejohn Battle pleaded guilty on Mar. 21, 2018, to possession with intent to distribute methamphetamine and was sentenced to 100 months in federal prison by U.S. District  Judge Ron Clark on Aug. 2, 2018.

According to information presented in court, a federal investigation into wide-spread drug trafficking in East Texas resulted in a federal indictment being returned by a grand jury on Oct. 18, 2017, charging eight individuals with multiple drug trafficking and firearms related charges including conspiracy to distribute and possess with intent to distribute methamphetamine, cocaine and other controlled substances; possession with intent to distribute methamphetamine, cocaine, and other controlled substances; use, carrying, possession of firearms in furtherance of a drug trafficking crime; felon in possession of firearms; distribution of methamphetamine near a playground; possession with intent to distribute methamphetamine and aiding and abetting; possession with intent to distribute methamphetamine on premises where children are present; and aiding and abetting. 

Carlton Deshan Johnson, 28, of Jacksonville, pleaded guilty on Mar. 21, 2018, to possession with intent to distribute methamphetamine and was sentenced to 130 months in federal prison by Judge Clark on Aug. 1, 2018.

David Lee Williams, 32, of Jacksonville, pleaded guilty on Mar. 22, 2018, to possession with intent to distribute methamphetamine and was sentenced to 57 months in federal prison on Aug. 1, 2018, by Judge Clark.

This case is being investigated by the Federal Bureau of Investigation, the Cherokee County Sheriff's Office, and the Texas Department of Public Safety and prosecuted by Assistant U.S. Attorney Mary Ann Cozby. 

SHERMAN, Texas – A jury has found two Chinese nationals guilty of maritime drug smuggling, announced Eastern District of Texas U.S. Attorney Joseph D. Brown today. 

FeiShang Liang, 52, and KanHua Wu, 51, both of the People’s Republic of China, were found guilty by a jury of maritime drug smuggling violations following a four-day trial before U.S. District Judge Amos L. Mazzant, III on Aug. 2, 2018.

            According to information presented in court, on Nov. 24, 2016, while on routine patrol in the Eastern Pacific Ocean, a United States Coast Guard Cutter detected a 120 foot long fishing vessel approximately 1,025 nautical miles west of the Galapagos Islands, Ecuador.  The Coast Guard launched its small boat to approach the fishing vessel, at which time the crew aboard the fishing vessel began throwing packages overboard.  Afterwards, law enforcement officers recovered 42 packages containing 983 kilograms of cocaine and the seven crew members aboard the fishing vessel were arrested and charged with maritime drug smuggling violations. Testimony at trial revealed that Liang was the ship’s captain and Wu was the engineer.  A U.S. Coast Guard helicopter monitoring the vessel caught both Liang and Wu on videotape as they threw over one ton of cocaine outfitted with GPS trackers into the ocean as they were being pursued by the Coast Guard.    

“To really have an effect on the drug supply in this country, we have to be willing to go after every person involved in the chain of distribution,” said Eastern District of Texas U.S. Attorney Joseph D. Brown. “Whether it’s the street dealer, or the person on the boat transporting, or the leader of the cartel, we will charge them and convict them.”

            Under federal statutes, the defendants each face a minimum sentence of 10 years and up to life in federal prison on each count of conviction at the time of  sentencing.  The sentencing range 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 and the U.S. Coast Guard and prosecuted by Assistant U.S. Attorneys Jay R. Combs and Christopher Eason.

TYLER, Texas – A 20-year-old Athens, Texas, man has been sentenced to federal prison for the unlawful possession of ricin in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown and Assistant Attorney General for National Security John C. Demers today.

Abel Keith Fulton pleaded guilty on Mar. 20, 2018 and was sentenced to 46 months in federal prison today by U.S. District Judge Robert W. Schroeder, III.  Fulton was also ordered to pay restitution in the amount of $30,060.00 for costs incurred by law enforcement officials in connection with the removal of the hazardous materials and decontamination of his residence.

According to information presented in court, from August to September 2016, Fulton possessed ricin at his home in Athens, Texas.  Ricin is a biological toxin that can be fatal if ingested, inhaled, or injected.  There is no known antidote or cure for ricin poisoning.  Fulton made the ricin using supplies that he purchased online. 

                This case was investigated by the Federal Bureau of Investigation, the U.S. Postal Inspection Service, and the Athens Police Department and prosecuted by Assistant U.S. Attorney Frank Coan and Trial Attorney Jerome Teresinski of the Department of Justice National Security Division. 

 

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Arongkron “Paul” Malasukum, 42, a resident of Woodside, New York, was sentenced today by U.S. District Judge Amos L. Mazzant, III, in Sherman, Texas, to nine months in prison to be followed by one year of supervised release for illegally trafficking parts from endangered African lions and tigers. 

Malasukum previously pleaded guilty before U.S. Magistrate Judge Kimberly C. Priest Johnson to a one count information charging him with wildlife trafficking in violation of the Lacey Act.    

In papers filed in federal court, Malasukum admitted to meeting with undercover agents who were working for the U.S. Fish and Wildlife Service, and purchasing a tiger skull from the agents. Malasukum also admitted to purchasing lion skulls from an auction house in Texas through the undercover agents, who were acting as “straw buyers” for Malasukum. Malasukum provided the undercover agents with cash and directed them on which items to bid and ultimately win. After the purchases, Malasukum shipped the tiger and lion skulls from Texas to his home in Woodside, New York. From New York, Malasukum shipped the skulls to Thailand for sale to a wholesale buyer. 

As part of his plea, Malasukum admitted that between April 9, 2015 and June 29, 2016, he purchased and exported from the United States to Thailand approximately 68 packages containing skulls, claws, and parts from endangered and protected species, with a total fair market value in excess of $150,000.

The sentence was announced by Acting Assistant Attorney General Jeffrey H. Wood for the Department of Justice’s Environment and Natural Resources Division, U.S. Attorney Joseph D. Brown for the Eastern District of Texas, and Acting Assistant Director of the Office of Law Enforcement for the U.S. Fish and Wildlife Service Edward Grace.

“Today’s sentencing is another positive result from the Justice Department’s continued partnership with the U.S. Fish and Wildlife Service in fighting the menace of illegal trade in protected wildlife,” said Acting Assistant Attorney General Wood. “Those who scheme and plot to criminally profit from the exploitation of these creatures will be brought to justice, as the defendant in this case has now learned”

“The defendant in this case profited from the endangered status of African lions and tigers by illegally buying and selling their parts on the black market,” said U.S. Attorney Joseph D. Brown for the Eastern District of Texas. “We will continue to enforce our endangered species laws to protect our beautiful animal resources.” 

“We are committed to bringing to justice those who would profit from the illegal international and interstate trafficking of wildlife,” said Acting Assistant Director of the Office of Law Enforcement for the U.S. Fish and Wildlife Service, Edward Grace. “We thank our state and federal partners for their help in investigating and prosecuting cases on behalf of imperiled species."

There are two sub-species of lions that are listed as threatened and/or endangered under the Endangered Species Act (ESA). Panthera leo melanachaita, found in eastern and southern Africa, is listed as threatened, and Panthera leo leo, found in India and western and central Africa, is listed as endangered. There are only about 1,400 members of the Panthera leo leo species remaining; 900 in 14 African populations and 523 in India. The size and distribution of these populations, population trends, and the severity of the threats to those populations are factors leading to Panthera leo leo being listed as endangered under the ESA. The sub-species Panthera leo melanachaita is believed to number between 17,000 -19,000 and is found across southern and eastern Africa. Although Panthera leo melanachaita populations are increasing overall, research has indicated there are population groups that are in decline due to ongoing threats; as a result, the sub-species Panthera leo melanachaita is listed as threatened under the ESA.

The investigation was handled by the U.S. Fish and Wildlife Service’s Office of Law Enforcement with assistance from the New York State Department of Environmental Conservation, the U. S. Attorney’s Office for the Eastern District of Texas, and the Justice Department’s Environmental Crimes Section.  The government is represented by Assistant U.S. Attorney James Noble and Trial Attorney Gary N. Donner of the Justice Department’s Environmental Crimes Section of the Environment and Natural Resources Division.

https://www.justice.gov/opa/pr/new-york-man-sentenced-prison-trafficking-endangered-lion-and-tiger-parts

WASHINGTON – Arongkron “Paul” Malasukum, 42, a resident of Woodside, New York, was sentenced today by U.S. District Judge Amos L. Mazzant, III, in Sherman, Texas, to nine months in prison to be followed by one year of supervised release for illegally trafficking parts from endangered African lions and tigers. 

Malasukum previously pleaded guilty before U.S. Magistrate Judge Kimberly C. Priest Johnson to a one count information charging him with wildlife trafficking in violation of the Lacey Act.    

In papers filed in federal court, Malasukum admitted to meeting with undercover agents who were working for the U.S. Fish and Wildlife Service, and purchasing a tiger skull from the agents. Malasukum also admitted to purchasing lion skulls from an auction house in Texas through the undercover agents, who were acting as “straw buyers” for Malasukum. Malasukum provided the undercover agents with cash and directed them on which items to bid and ultimately win. After the purchases, Malasukum shipped the tiger and lion skulls from Texas to his home in Woodside, New York. From New York, Malasukum shipped the skulls to Thailand for sale to a wholesale buyer. 

As part of his plea, Malasukum admitted that between April 9, 2015 and June 29, 2016, he purchased and exported from the United States to Thailand approximately 68 packages containing skulls, claws, and parts from endangered and protected species, with a total fair market value in excess of $150,000.

The sentence was announced by Acting Assistant Attorney General Jeffrey H. Wood for the Department of Justice’s Environment and Natural Resources Division, U.S. Attorney Joseph D. Brown for the Eastern District of Texas, and Acting Assistant Director of the Office of Law Enforcement for the U.S. Fish and Wildlife Service Edward Grace.

“Today’s sentencing is another positive result from the Justice Department’s continued partnership with the U.S. Fish and Wildlife Service in fighting the menace of illegal trade in protected wildlife,” said Acting Assistant Attorney General Wood. “Those who scheme and plot to criminally profit from the exploitation of these creatures will be brought to justice, as the defendant in this case has now learned”

“The defendant in this case profited from the endangered status of African lions and tigers by illegally buying and selling their parts on the black market,” said U.S. Attorney Joseph D. Brown for the Eastern District of Texas. “We will continue to enforce our endangered species laws to protect our beautiful animal resources.” 

“We are committed to bringing to justice those who would profit from the illegal international and interstate trafficking of wildlife,” said Acting Assistant Director of the Office of Law Enforcement for the U.S. Fish and Wildlife Service, Edward Grace. “We thank our state and federal partners for their help in investigating and prosecuting cases on behalf of imperiled species."

There are two sub-species of lions that are listed as threatened and/or endangered under the Endangered Species Act (ESA). Panthera leo melanachaita, found in eastern and southern Africa, is listed as threatened, and Panthera leo leo, found in India and western and central Africa, is listed as endangered. There are only about 1,400 members of the Panthera leo leo species remaining; 900 in 14 African populations and 523 in India. The size and distribution of these populations, population trends, and the severity of the threats to those populations are factors leading to Panthera leo leo being listed as endangered under the ESA. The sub-species Panthera leo melanachaita is believed to number between 17,000 -19,000 and is found across southern and eastern Africa. Although Panthera leo melanachaita populations are increasing overall, research has indicated there are population groups that are in decline due to ongoing threats; as a result, the sub-species Panthera leo melanachaita is listed as threatened under the ESA.

The investigation was handled by the U.S. Fish and Wildlife Service’s Office of Law Enforcement with assistance from the New York State Department of Environmental Conservation, the U. S. Attorney’s Office for the Eastern District of Texas, and the Justice Department’s Environmental Crimes Section.  The government is represented by Assistant U.S. Attorney James Noble and Trial Attorney Gary N. Donner of the Justice Department’s Environmental Crimes Section of the Environment and Natural Resources Division.

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BEAUMONT, Texas – A 43-year-old Baytown, Texas, man has been sentenced to prison for federal violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.

                Andres “Andy” Degollado pleaded guilty on Apr. 17, 2018 to wire fraud and was sentenced to 15 months in federal prison today by U.S. District Judge Marcia A. Crone.  Degollado was also ordered to pay restitution in the amount of $70,000. 

                According to information presented in court, Degollado served as the Operations Manager for Sienna Shipyards, L.L.C., an inland barge repair facility located on the Sabine River in Orange County, Texas.  Degollado was a salaried employee responsible for coordinating the work of employees, contractors, and sub-contractors to perform various aspects of barge repair work.  From January to November, 2014, Degollado, while working as Operations Manager for Sienna, devised and carried out a kick-back scheme to defraud his employer by having a  contractor bill or invoice Sienna for barge cleaning work when no such work was ever performed.  According to company records, Sienna paid fraudulent invoices totaling about $192,250.00 for work that was not performed.  As a result, Degollado received kick-backs from the contractor.  

This case was investigated by Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorneys Randall L. Fluke and Christopher T. Tortorice.

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TYLER, Texas – A 47-year-old Whitehouse, Texas woman has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.

Shelly Hunter pleaded guilty to interstate transport of stolen funds before U.S. Magistrate Judge K. Nicole Mitchell on July 16, 2018.

According to information presented in court, from March 2005 until February 2017 Hunter was employed as the Business Office Manager for Peltier Chevrolet, Inc., an automotive dealership located in Tyler, Texas. Beginning March 2011, Hunter embezzled and stole funds belonging to the dealership.  She did so by way of nearly 250 unauthorized transactions, including ACH payments and checks.  Hunter then used the stolen funds to pay her personal credit cards.  In some instances, she mailed checks to pay her accounts.  She also directly wired funds from the dealership’s bank account to her credit card accounts.  Hunter used various means to conceal the theft of funds from the dealership.  These efforts included forging the signature of Peltier’s manager, initiating authorized payments, creating fraudulent entries in Peltier’s general ledger, and generating false bank reconciliations. 

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

This case was investigated by the U.S. Secret Service and the U.S. Postal Inspection Service and is being prosecuted by Assistant U.S. Attorney Frank Coan.

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BEAUMONT, Texas – A jury has found a 31-year-old federal inmate guilty of assaulting a correctional officer in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today. 

Reginald Edward Green, of Washington, D.C., was found guilty of assault on a federal officer following a two-day trial before U.S. District Judge Thad Heartfield on July 10, 2018.

                According to information presented in court, on Feb. 2, 2018, a federal correctional officer was performing his duties at the U.S. Penitentiary located in the Federal Correctional Complex in Beaumont, Texas. The officer brought Green in for a urinalysis, and, after filling out paperwork and handing a specimen cup to Green, Green became belligerent and then closed his fist and struck the officer in the face.  The officer used his body alarm to alert others to the attack as he struggled to gain control of Green.  During trial, two witnesses testified they aided in restraining Green.  The officer suffered swelling and bruising to his left facial area around his eye which lasted for several days after the attack. 

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

                This case was investigated by the Federal Bureau of Prisons and the Federal Bureau of Investigation and was prosecuted by Special Assistant U.S. Attorney Christine Hummert and Assistant U.S. Attorney John Craft.

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BEAUMONT, Texas – A 56-year-old Beaumont woman has pleaded guilty to federal drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.

Minnie Annette Coleman pleaded guilty to conspiracy to possess with intent to distribute crack cocaine and conspiracy to launder money on June 26, 2018 before U.S. Magistrate Judge Keith Giblin.

According to information presented in court, since December 2012, Coleman was involved in a drug trafficking organization that distributed crack cocaine in the Beaumont, Texas, area.  During this time, Coleman allowed drugs and drug proceeds to be stored at her home in the 3300 block of Paris Street in Beaumont and she was personally responsible for delivering crack cocaine to others in the Beaumont area.  Coleman was indicted by a federal grand jury and charged with drug trafficking violations on Feb. 7, 2018.     

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

This case is being prosecuted under the Organized Crime Drug Enforcement Task Force (OCDETF) as a joint investigation.  The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking organizations, weapons trafficking offenders, money laundering organizations, and those individuals responsible for the nation’s illegal drug supply. 

                This case was investigated by the Drug Enforcement Administration and the Beaumont Police Department and is being prosecuted by Assistant U.S. Attorney Christopher T. Rapp.

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BEAUMONT, Texas – A 36-year-old federal inmate has pleaded guilty to assaulting another prisoner in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.

                Joseph Young, of Ripley, TN, pleaded guilty to assault with a deadly weapon on June 22, 2018 before U.S. Magistrate Judge Keith F. Giblin. 

                According to information presented in court, on June 26, 2016, while an inmate with the Bureau of Prisons, Young assaulted another inmate by stabbing him several times in the abdomen, back, arms and leg, with a metal object of about seven inches in length that had been sharpened to a point into a homemade knife.  The victim survived the attack and Young was indicted by a federal grand jury on Feb. 7, 2018 and charged with assault.

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

                This case is being investigated by the Federal Bureau of Prisons and prosecuted by Assistant U.S. Attorney Joseph R. Batte.

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BEAUMONT, Texas –A 57-year-old Salvadoran national has been indicted on federal immigration violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.

Mario Obdulio Orellana was named in a five-count indictment returned by a federal grand jury on June 6, 2018 charging him with two counts of false representation of U.S. citizenship, false statement in application for a passport, unauthorized use of a Social Security number, and voter fraud.  Orellana made an initial appearance before U.S. Magistrate Judge Keith Giblin on June 21, 2018.

According to the information presented in court, Orellana is alleged to have illegally entered the United States from El Salvador in the early 1980s. In 1987, while illegally residing in Shelby County, Texas, Orellana is alleged to have used falsified documents to obtain a birth certificate showing he was born in the United States; a passport as a U.S. citizen; and a social security number and register to vote as a U.S. citizen. Furthermore, Orellana is alleged to have fraudulently voted in the November 2016 election. 

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

This case is being investigated by the U.S. Department of State, Bureau of Diplomatic Security and prosecuted by Assistant U.S. Attorney Lauren Gaston. 

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

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BEAUMONT, Texas – A 56-year-old Houston man has pleaded guilty to federal drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.

Eugenio Cerda pleaded guilty to conspiracy to possess with intent to distribute cocaine and conspiracy to money launder on June 21, 2018 before U.S. Magistrate Judge Keith Giblin.

           According to information presented in court, on Jan. 19, 2017, a known drug courier was pulled over after leaving Cerda’s home.  Inside the vehicle, officers discovered over a kilogram of fentanyl, which represented DEA’s largest fentanyl seizure in the Houston/Southeast Texas area at that time.  Over the course of the next six months, law enforcement surveillance showed Cerda conspired with others to distribute 2.5 kilograms of fentanyl, one kilogram of heroin and over 21 kilograms of cocaine through Southeast Texas and is believed to have laundered at least $1.5 million in drug proceeds. Cerda was indicted by a federal grand jury on Jan. 10, 2018.

           Under federal statutes, Cerda faces at least 10 years and 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 is being prosecuted under the Organized Crime Drug Enforcement Task Force (OCDETF) as a joint investigation.  The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking organizations, weapons trafficking offenders, money laundering organizations, and those individuals responsible for the nation’s illegal drug supply.            

            This case was investigated by the Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney Christopher T. Rapp.

 

PLANO, Texas – A 37-year-old Mozambique national residing in the Dallas area has been sentenced to prison for federal immigration violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.

                Nelia Angelina Mulembwe pleaded guilty on Feb. 20, 2018 to fraud and misuse of visas, permits and other documents and was sentenced to six months in federal prison by U.S. District Judge Marcia Crone on June 20, 2018.  

                According to information presented in court, in June 2017, law enforcement officers received a tip that a Mozambique national was being held captive in a Collin County apartment.  An investigation revealed that the victim had worked for Mulembwe as a nanny and housekeeper in Mozambique.  In 2015, Mulembwe applied for a visa for the victim to accompany her and her children to the United States.  Mulembwe falsely represented that the victim was a student and would be coming to the United States for a month-long visit.  However, after arriving in the United States in October 2015, the victim stayed in Mulembwe’s apartment where she slept on a mattress on the floor in the children’s room and worked constantly with no time off until she was rescued by federal agents in June 2017.  During this time, the victim’s family in Mozambique was paid the equivalent of approximately $70 a month, but the victim received no compensation for her services.  Mulembwe was also ordered to pay restitution of $108,699.25 to her victim, which represents fair wages the victim should have received. 

“Labor trafficking is modern day slavery,” said U.S. Attorney Brown. “Cases involving trafficking of people for the sex trade seem to get more attention, but these types of cases, where people are forced to work for little or no pay, are becoming more common.   The cases involve the denial of basic human rights, and the type of people who are victims are particularly vulnerable.  Federal law enforcement will continue to investigate and prosecute these cases, and we hope that the public will report situations like this when anyone becomes aware of them.”               

This case was investigated by the Department of Labor-Office of Inspector General, the U.S. Department of State’s Diplomatic Security Service (DSS), and the Federal Bureau of Investigation.  This case was prosecuted by Assistant U.S. Attorney Marisa Miller.

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BEAUMONT, Texas – A 40-year-old Dallas tax preparer has been sentenced to prison for federal tax violations and failure to appear for his trial on that charge in early 2015 in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.

                Shannon Tecoko Mays was sentenced by U.S. District Judge Thad Heartfield to 180 months in federal prison, of which 162 months was for the tax scheme and an additional or consecutive 18 months for the failure to appear felony. Mays was also ordered to pay restitution of $1,121,202 to the Internal Revenue Service. 

                Mays was originally indicted in February 2014 by a federal grand jury charging him with conspiracy to commit wire fraud.  He was released on bond pending trial and failed to appear for trial in January 2015. Mays was indicted by a federal grand jury in February 2015 for obstruction of justice for his failure to appear for trial. Mays pleaded guilty to the two felony indictments on Oct. 2, 2017.

                According to prosecutors, an investigation began in August 2012 in response to numerous complaints to state and federal authorities from citizens in Port Arthur, Anahuac, Nacogdoches and Lufkin, Texas regarding income tax returns that were being fraudulently prepared on their behalf.  During the investigation, it was discovered that Mays was operating numerous offices across the United States under the name “Syam Tax Services, L.L.C.” and “Baby Momma Tax.”  Although the principal office was located in Dallas, Mays also operated or sought to operate satellite offices in numerous other locations, including Fort Worth, Houston, New Orleans, Memphis, Atlanta, Chicago and Los Angeles. 

                According to information presented in court, Mays targeted individuals who were on disability or only received Social Security income as they are generally exempt from having to file income tax returns and thus would be less likely to discover a fraudulent tax return had been filed on their behalf.  To further facilitate the scheme, Mays employed “recruiters,” paying them from $50-100 for every client they successfully brought into Syam Tax. Many of the complaining taxpayers were told by the recruiters that they were receiving an economic “stimulus” payment from the government. In order to avoid detection, Mays altered the taxpayers’ addresses and phone numbers on the returns so that any phone calls or correspondence from the IRS would not reach the taxpayers.  The scheme also used electronic deposits to ensure paper checks would not be mailed to the taxpayer.  For the tax year 2011, Mays filed 4,226 tax returns claiming approximately $6 million in refunds. Of the returns filed, 3,887 of the returns fraudulently claimed an education credit under the American Education Opportunity Act, designed for persons to pay for their college education. Some of the returns also claimed false Earned Income credits. A successful injunction suit brought by the Texas Attorney General’s Office – Consumer Protection Division in 2014 recovered approximately $1,282,000 from Syam Tax Service bank accounts, which was returned to the U.S. Treasury. One recruiter from the Port Arthur area, Diana Broussard McCoy, pleaded guilty to the conspiracy charge in January 2015, and was sentenced to five years federal probation by Chief Judge Ron Clark. Another recruiter, Myra Jones, pleaded guilty in March 2014, to impersonating an Internal Revenue Service employee, and was also sentenced to federal probation by Judge Clark.

“The defendant who perpetrated this scheme systematically defrauded the government and the taxpaying public,” said Tamera Cantu, IRS Special Agent in Charge of the Dallas Field Office. “At the IRS, protecting taxpayer money is a matter we take very seriously.  IRS Criminal Investigation will continue to vigorously pursue those who unjustly enrich themselves by preparing false claims for refunds.”               

This case was investigated by Internal Revenue Service – Criminal Investigation Division, Federal Bureau of Investigation, the Port Arthur Police Department, the Texas Attorney General’s Office – Consumer Protection Division, and the Treasury Inspector General for Tax Administration.  This case was prosecuted by Assistant U.S. Attorneys Robert L. Rawls and Chris Tortorice.

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BEAUMONT, Texas – A 36-year-old Mt. Vernon, Texas man has been sentenced to prison for federal tax violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.

                Charles Maull, II, pleaded guilty on Feb. 21, 2018 to six counts of willfully aiding in the preparation and filing of a false income tax return and was sentenced to 30 months in federal prison today by U.S. District Judge Thad Heartfield.  Maull was also ordered to pay restitution of $674,730.68 to the Internal Revenue Service. 

                According to information presented in court, from 2010 to 2017, while operating a tax return preparation business in Beaumont, Maull knowingly falsified business income, overstates withholding taxes, fraudulently claimed education credits and fraudulently claimed dependents that taxpayers were not entitled to claim. 

                “The hearing today sends a clear message to unscrupulous return preparers who break the law and abuse the tax system,” said Special Agent in Charge Tamera Cantu of the IRS-Criminal Investigation’s Dallas Field Office.  “Intentionally falsifying documents filed with the IRS is a crime and IRS-Criminal Investigation is committed to pursuing those return preparers who enrich themselves while cheating their clients and the U.S. Treasury.” 

                Maull was ordered to report to the Federal Correctional Institution in Texarkana on July 24, 2018 to begin serving his sentence.

This case was investigated by Internal Revenue Service – Criminal Investigation Division and prosecuted by Assistant U.S. Attorney Randall L. Fluke.

 

BEAUMONT, Texas – A 43-year-old Beaumont, Texas woman has pleaded guilty for her part in a conspiracy targeting federal inmates and their families in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.

                        Tanya L. Richard pleaded guilty to conspiracy to commit wire fraud today before U.S. Magistrate Judge Keith F. Giblin. 

                        According to information presented in court, while employed as an administrative employee of the Federal Correctional Complex in Beaumont, Richard was involved in a wide-spread fraud scheme targeting the families of federal inmates. Six persons, some of whom were former federal inmates, pleaded guilty to a similar charge last year in the same scheme and are currently serving federal prison sentences for their involvement.  The nationwide, six-year scheme defrauded the relatives of federal inmates by falsely representing that they could obtain reductions in their relatives’ sentences in exchange for the payment of cash and wire transfers of funds. The payments were falsely represented to be for the payment for a network of confidential informants who would make undercover drug transactions under the direction of the courts and prosecutors which would allow the incarcerated inmates to ask the court for reductions of sentences for providing substantial assistance to the government under the Federal Rules of Criminal Procedure. In reality, the money was spent for the personal benefit of the defendants and there was never any network of informants or undercover transactions. Federal inmates do not have to pay for substantial assistance motions for reductions of sentences which normally only require information to be provided by such inmates against co-defendants as well as trial testimony.

                        Richard’s role in the scheme included obtaining confidential information from federal court presentence reports of inmates and drafting false cooperation agreements for inmate families that appeared to be from federal prosecutors and U.S. Attorneys. Richard is a former common-law spouse of Alvin James Warrick who pleaded guilty to a similar charge in the scheme last year. The scheme resulted in losses to inmate families from across the nation of over $4 million dollars. Richard was placed on administrative leave from her position at the federal prison after her indictment in April 2018.

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

                        This case was investigated by the Federal Bureau of Investigation; Department of Justice, Office of Inspector General; U.S. Marshals Service; Houston Police Department-Major Offenders Division; U.S. Attorney’s Offices in the Eastern District of Texas and Southern District of Florida. This case is being prosecuted by Assistant U.S. Attorney Robert L. Rawls.

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Two federal inmates convicted of killing another inmate at a Beaumont Prison in the Eastern District of Texas were sentenced to death today.

Attorney General Jeff Sessions, Acting Assistant Attorney General John P. Cronan of the U.S. Department of Justice’s Criminal Division and U.S. Attorney Joseph D. Brown for the Eastern District of Texas made the announcement.

Ricky Fackrell, 34, of Vernal, Utah, and Christopher Cramer, 36, of Ogden, Utah, were indicted by a federal grand jury on March 3, 2016 and charged with murder and conspiracy to commit murder.  They were both convicted by a federal jury of murder in the first degree on May 9, following a six-day trial before U.S. District Judge Marcia Crone.  Today, after about eight hours of deliberation, the jury in Beaumont sentenced both Fackrell and Cramer to death.  Judge Crone immediately sentenced the defendants accordingly.

“White supremacists subscribe to a repugnant, hateful ideology and use it to justify criminal activity,” Attorney General Sessions said.  “The murder committed in this case was an act of senseless, barbaric violence. Now that the jury has spoken, justice will be done.  I want to thank our fabulous prosecutors John Craft, Joseph Batte, and Sonia Jimenez for their hard work. With their help, this Department will continue to prosecute violent criminals with the aggressiveness and relentlessness necessary in cases like these.”

“These defendants had a violent history, and when the murder happens in a prison, it is clear that the defendants are always going to be a danger,” said U.S. Attorney Brown.  “This was an appropriate case for the death penalty and we will continue to seek that punishment in the worst cases.”

According to information presented in court, beginning in March 2014, Cramer and Fackrell, inmates of the U.S. Penitentiary in Beaumont, Texas, conspired to murder fellow inmate, Leo Johns.  On June 9, 2014, Cramer and Fackrell stabbed Leo Johns to death at the federal prison. All three inmates were members of the white supremacy group, Soldiers of the Aryan Culture.

This case was investigated by the FBI and the U.S. Bureau of Prisons Special Investigative Services.  This case was prosecuted by Assistant U.S. Attorneys John Craft and Joseph R. Batte of the Eastern District of Texas and Trial Attorney Sonia V. Jimenez of the Justice Department’s Capital Case Section.

WASHINGTON – Two federal inmates convicted of killing another inmate at a Beaumont Prison in the Eastern District of Texas were sentenced to death today.

Attorney General Jeff Sessions, Acting Assistant Attorney General John P. Cronan of the U.S. Department of Justice’s Criminal Division and U.S. Attorney Joseph D. Brown for the Eastern District of Texas made the announcement.

Ricky Fackrell, 34, of Vernal, Utah, and Christopher Cramer, 36, of Ogden, Utah, were indicted by a federal grand jury on March 3, 2016 and charged with murder and conspiracy to commit murder.  They were both convicted by a federal jury of murder in the first degree on May 9, following a six-day trial before U.S. District Judge Marcia Crone.  Today, after about eight hours of deliberation, the jury in Beaumont sentenced both Fackrell and Cramer to death.  Judge Crone immediately sentenced the defendants accordingly.

“White supremacists subscribe to a repugnant, hateful ideology and use it to justify criminal activity,” Attorney General Sessions said.  “The murder committed in this case was an act of senseless, barbaric violence. Now that the jury has spoken, justice will be done.  I want to thank our fabulous prosecutors John Craft, Joseph Batte, and Sonia Jimenez for their hard work. With their help, this Department will continue to prosecute violent criminals with the aggressiveness and relentlessness necessary in cases like these.”

“These defendants had a violent history, and when the murder happens in a prison, it is clear that the defendants are always going to be a danger,” said U.S. Attorney Brown.  “This was an appropriate case for the death penalty and we will continue to seek that punishment in the worst cases.”

According to information presented in court, beginning in March 2014, Cramer and Fackrell, inmates of the U.S. Penitentiary in Beaumont, Texas, conspired to murder fellow inmate, Leo Johns.  On June 9, 2014, Cramer and Fackrell stabbed Leo Johns to death at the federal prison. All three inmates were members of the white supremacy group, Soldiers of the Aryan Culture.

This case was investigated by the FBI and the U.S. Bureau of Prisons Special Investigative Services.  This case was prosecuted by Assistant U.S. Attorneys John Craft and Joseph R. Batte of the Eastern District of Texas and Trial Attorney Sonia V. Jimenez of the Justice Department’s Capital Case Section.

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LUFKIN, Texas - A 32-year-old Houston man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.

James Edward Turner pleaded guilty on Mar. 23, 2018, to possession with intent to distribute a controlled substance and was sentenced to 100 months in federal prison today by U.S. District Judge Ron Clark today.  Turner was also ordered to pay restitution in the amount of $46,589.74.

                According to information presented in court, on March 30, 2017, a law enforcement officer in Nacogdoches County, Texas stopped a vehicle for a traffic violation.  During the stop, the officer called for a canine and ran the identifications of the passengers through law enforcement databases.  Turner’s information showed a possible burglary warrant outstanding from another state.  During a search of the vehicle, the officer located a laundry bag containing numerous prescription pills still in the bottles.  These pills were determined to have been stolen in a burglary the previous night of a Walgreens pharmacy in Arkansas.  Arkansas police spoke with the Nacogdoches Sheriff’s Office and stated they were currently investigating two Walgreens burglaries in Little Rock.  A check with Walgreens records determined the pills recovered in the traffic stop were from both Walgreens burglaries.  A total of 6,403 oxycodone pills, in various dosage units, were recovered.  Turner was indicted on Sep. 20, 2017 and charged with drug trafficking violations.  

                This case was investigated by the Nacogdoches County Sheriff’s Office and the U.S. Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney Paul A. Hable.

 

BEAUMONT, Texas – A 42-year-old Baytown man has pleaded guilty to federal drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.

Jose Quiroga pleaded guilty to conspiracy to possess with intent to distribute cocaine and conspiracy to money launder today before U.S. Magistrate Judge Keith Giblin.

           According to information presented in court, Quiroga served as a narcotics and bulk currency courier for a drug trafficking organization led by Eugenio Cerda.  This organization was responsible for trafficking cocaine and fentanyl from the Houston area to Beaumont and further east into Louisiana and Mississippi.  On June 17, 2017, Quiroga was stopped by law enforcement officers in Beaumont driving a truck registered to Cerda.  Agents discovered $51,040 cash, which was the proceeds of a two-kilogram cocaine delivery, concealed in a hidden compartment of the truck’s tailgate. Further investigation revealed Quiroga distributed approximately nine kilograms of cocaine for Cerda.  Quiroga was indicted by a federal grand jury on Jan. 10, 2018.

           Under federal statutes, Quiroga 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 is being prosecuted under the Organized Crime Drug Enforcement Task Force (OCDETF) as a joint investigation.  The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking organizations, weapons trafficking offenders, money laundering organizations, and those individuals responsible for the nation’s illegal drug supply.            

            This case was investigated by the Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney Christopher T. Rapp.

 

 

 

TYLER, Texas – A 49-year-old, Hawkins, Texas, woman has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.

               Lina Su, also known as Lina Perkins, pleaded guilty to two counts of wire fraud and one count of money laundering today before U.S. Magistrate Judge K. Nicole Mitchell.   

               According to information presented in court, in March of 2017, Su made several unauthorized wire transfers from VIG Furniture bank accounts into an account she controlled at City National Bank in Sulphur Springs, Texas.  In 2015 and 2016, she also made unauthorized transfers from Airport Van Rental and ACE Medical Transport bank accounts into her personal checking account. In addition, Su used funds from those companies’ accounts to make personal credit card payments, purchase land for herself, and pay contractors constructing her home in Wood County, Texas.  Altogether, Su embezzled and transferred over $1.8 million dollars from the California companies she was working for during the time period.  Su was indicted by a federal grand jury on Dec. 13, 2017.

                Under federal statutes, Su 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 Internal Revenue Service, Criminal Investigation, Tyler Office, the Vernon California Police Department, and prosecuted by Assistant U.S. Attorneys Jim Noble and Robert Wells with the assistance of the Financial Litigation Unit.

 

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BEAUMONT, Texas – A 40-year-old Beaumont, Texas man has been indicted and charged with federal violations in the Eastern District of Texas announced U.S. Attorney Joseph D. Brown today.

     Jonathan Matthew Torres was indicted by a federal grand jury today and charged with use of an explosive to damage property, possession of an unregistered destructive device, and mailing a threatening communication.

     According to information presented in court, on Apr. 26, 2018, what appeared to be a homemade destructive device was located inside a U.S. Postal Service priority mail service box at a Starbucks on Dowlen Road in Beaumont.  The device did not explode and there were no injuries.  On May 10, 2018, an explosion occurred at St. Stephen’s Episcopal Church on Delaware Street in Beaumont.  The explosive device caused damage to St. Stephen’s administration building but there were no injuries. An extensive investigation led law enforcement authorities to Torres and on May 24, 2018, a search warrant was executed at Torres’s 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 previously discussed 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 devices.  Torres was arrested without incident and remains in custody pending trial.

     If convicted, Torres faces a minimum of five years and up to 20 years in federal prison.

     If you have any information related to these events, please call Beaumont Crime Stoppers at 409-833-TIPS (8477) or 1-800-CALL-FBI.

     This case is being 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, and is being prosecuted by Assistant U.S. Attorneys Christopher T. Tortorice and Russell James.

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.

LUFKIN, Texas — A Jasper, Texas couple and their daughter have been sentenced to federal prison for conspiracy violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.

Walter Diggles, 66, his wife, Rosie Diggles, 64, both of Jasper, and their daughter, Anita Diggles, 42, of Houston, were convicted on Aug. 3, 2017, of conspiracy to commit wire fraud, wire fraud.  Additionally, Walter Diggles was convicted of 11 counts of wire fraud, three counts of theft concerning programs receiving federal funds, and three counts of money laundering (engaging in monetary transactions in property derived from specified unlawful activity, here, wire fraud). Rosie Diggles was also convicted of ten counts of wire fraud and one count of money laundering (engaging in monetary transactions in property derived from specified unlawful activity, here, wire fraud).

Today, Walter Diggles was sentenced to 108 months in federal prison by U.S. District Judge Ron Clark, along with restitution to be paid to the government in the amount of $1,326,049.91.  Rosie Diggles and Anita Diggles were each sentenced to 54 months in federal prison and were ordered to pay restitution jointly to the government in the amount of $971,143.57.

According to information presented in court, the defendants devised a scheme to obtain and make personal use of federal block grant funds that Congress appropriated following Hurricanes Rita, Katrina, Ike, and Dolly.  These funds were made available to the State of Texas, which in turn contracted with several councils of governments within the state to assist in administering and distributing the funds. Walter Diggles was the Executive Director of the Deep East Texas Council of Governments during this time and used his position to approve inflated billing rates and requests for reimbursement of federal block grant funds while Rosie Diggles and Anita Diggles prepared many of the requests. Additionally, Walter Diggles engaged in activities and approved requests for block grant funds that were fraudulent in nature and all the defendants spent significant amounts of the excess funds on personal expenses.  The Diggles were indicted by a federal grand jury on Dec. 2, 2015.

“The defendants stole from the taxpayers, and these kinds of frauds take money away from real people – disaster victims,” said Joseph Brown, U.S. Attorney for the Eastern District of Texas.   “This was an appropriate sentence, and hopefully it will help deter some of this type of behavior the next time.”  

“Offenders who abuse the public trust inherently are more culpable.  The defendants made a conscious decision to deceive and benefit personally at the expense of the citizens of the State of Texas,” said Tamera Cantu, IRS Special Agent In Charge of the Dallas Field Office.  “Today’s sentences underscore our commitment to work in a collaborative effort to promote honest and ethical government at all levels and to prosecute those who violate the public’s trust.”

"Today's sentencing is the result of an outstanding collaborative effort between the U.S. Attorney's Office, Eastern District of Texas (Lufkin Division), the Federal Bureau of Investigation, the Internal Revenue Services-Criminal Investigation Division, Homeland Security Investigations, the U.S. Department of Housing and Urban Development, and the Texas State Auditor's Office," said HSI Houston Special Agent in Charge Mark B. Dawson. "By working together as a team, we were able to bring justice to the hurricane victims to whom the funds were intended to aid."

This case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service-Criminal Investigation, the U.S. Department of Homeland Security / Homeland Security Investigations, the U.S. Department of Housing and Urban Development, and the Texas State Auditor’s Office.  This case was prosecuted by Assistant U.S. Attorneys Tom Gibson and James Noble.

 

PLANO, Texas –The former mayor of Richardson, Texas and a land developer who she eventually married, have been indicted on federal conspiracy violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.

Laura Jordan, also known as Laura Maczka, 53, and Mark Jordan, 51, both of Plano, Texas were named in a seven-count indictment charging them with conspiracy to commit honest services wire fraud, honest services wire fraud, conspiracy to commit bribery, and bribery concerning programs receiving federal funds.  A federal grand jury returned the indictment on May 10, 2018.  Maczka and Jordan made initial appearances before U.S. Magistrate Judge Kimberly Priest Johnson today. 

According to the indictment, from May 2013 through April 2015, Maczka was the mayor of Richardson, Texas, and Jordan was a land developer.  The indictment alleges that Maczka and Jordan conspired to devise and execute a scheme to defraud and deprive City of Richardson residents of the honest services of the Mayor through bribery. Maczka, contrary to her campaign promises, supported and repeatedly voted for controversial zoning changes sought by Jordan ultimately allowing for the construction of over 1,000 new apartments in Richardson near Richardson neighborhoods. The indictment alleges that, in exchange, Jordan paid Maczka over $18,000 in cash and $40,000 by check, paid for over $24,000 in renovations to Maczka’s home, paid for Maczka’s luxury hotel stays and airfare upgrades, and provided Maczka lucrative employment at one of Jordan’s companies. According to the indictment, Maczka and Jordan failed to disclose to the public that they had coordinated to effect the zoning changes Jordan wanted and that Jordan had provided a stream of benefits to Maczka.

“These are the kinds of things that make the public distrust government officials,” said U.S. Attorney Joseph D. Brown.  “Public servants should not be for sale, and this indictment clearly indicates that that Ms. Maczka’s vote was for sale, and Mr. Jordan certainly was willing to buy it.”

"With the indictment and arrest of Maczka and Jordan, the FBI will continue its efforts to identify and bring to justice those public servants who use their positions of trust to benefit themselves personally and conspire with others to violate federal corruption laws," said Erick K. Jackson, FBI Dallas Special Agent-In-Charge.

            If convicted, both Maczka and Jordan face up to 20 years in federal prison.

This case is being investigated by the Federal Bureau of Investigation. 

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.

 

PLANO, Texas – A 52-year-old, The Woodlands, Texas, man has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.                 

Arlando Jacobs pleaded guilty to conspiracy to commit wire fraud on May 14, 2018, before U.S. Magistrate Judge Kimberly Priest Johnson.   

According to information presented in court, from October 2011 through April 2017, Jacobs conspired with others to create and submit fraudulent mortgage lien documents to title companies and financial institutions in order to receive transfers of funds they were not entitled to receive. Jacobs was indicted by a federal grand jury in October 2017.  Co-defendant, Clarence Roland, is scheduled for trial in September 2018.

                Under federal statutes, Jacobs 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 is being investigated by the Federal Housing Finance Agency-Office of  Inspector General, Federal Bureau of Investigation, and Housing & Urban Development-Office of Inspector General.  This case is being prosecuted by Assistant U.S. Attorney Christopher Eason.

 

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