Eastern District of Texas

BEAUMONT, Texas – A federal grand jury returned a 40-count indictment on May 2, 2018, charging 12 individuals with federal violations related to an insurance fraud scheme in the  Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.

               According to the indictment, beginning in 2011, Patrick Wayne Bronnon, and others, began executing a scheme to defraud various insurance companies through fraudulent claims on homes and vehicles.  The indictment alleges Bronnon, or co-defendant Glenn Etienne, would identify a low value property and purchase it through a co-defendant straw purchaser.  On several occasions, Bronnon or Etienne would provide the straw purchaser with the funds for the down payment and initial insurance premium. Within a couple of weeks, Bronnon or an associate would intentionally damage the home, typically by fire or water, in order to collect insurance proceeds.  In total, nine fraudulent fire claims, three fraudulent water damage claims, and two fraudulent theft claims were filed with various insurance companies on nine different addresses, totaling approximately $1.7 million in fraudulent payments. The properties were located in Port Arthur, Port Neches, Beaumont, and Sugarland, Texas.  Those charged in the indictment are:

Patrick Wayne Bronnon, 49, of Groves, Texas; Glenn Dell Etienne, 50, of Groves; Geraldine Weldon Joseph, 67, of Port Arthur; Morris Broussard, 51, of Houston; Keisha Windon Lewis, 44, of Port Arthur; Helene Williams Calcote, 41, of Groves; Cynthia Lynn Banion, 45, of Houston; Earnest Hamilton, 79, of Richmond; Nathaniel Joseph Chevalier, 40, of Nederland; Rodric Ledae Wallace, 49, of Nederland; and
Riley Moss Reed, 63, of Port Arthur

                Under federal statutes, if convicted, the defendants face up to 20 years in federal prison. 

                This case is being investigated by the U.S. Postal Inspection Service, National Insurance Crime Bureau and prosecuted by Assistant U.S. Attorney Christopher T. Tortorice.

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 – Four Port Arthur, Texas men have been indicted by a federal grand jury and charged with federal violations related to a crime spree in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.

                Darrion Tyrell Kimble, 19; Tavori Terrell Jackson, 19; Damien Earl Kimble, 35; and Kamren Terezz Lewis, 18, were named in the 11-count indictment returned by a federal grand jury on May 2, 2018, charging them with Hobbs Act conspiracy and federal firearms violations.  The defendants made initial appearances before U.S. Magistrate Judge Zack Hawthorn today in Beaumont.

                According to the indictment, from July 26, 2017, through Mar. 6, 2018, the defendants are alleged to have conspired together to commit five armed robberies of businesses in Port Arthur and Beaumont, which unlawfully obstructed, delayed and affected commerce, in violation of 18 U.S.C. § 1951. 

                Under federal statutes, if convicted, the defendants face up to 20 years in federal prison. 

This case is being investigated by the Beaumont Police Department, the Port Arthur Police Department, and the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney John B. Ross. 

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

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PLANO, Texas – A 27-year-old Lewisville, Texas man has been sentenced to 62 years in federal prison for violent crimes in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.

­­­­­ Jermaine Webster Harris was found guilty by a jury on May 25, 2017, of multiple federal charges and was sentenced to 744 months in federal prison today by U.S. District Judge Marcia Crone in Plano.  Harris was convicted of 17 federal charges which included multiple violations of carjacking; conspiracy to carry a firearm during and in relation to a crime of violence; possession of a firearm during a violent crime; conspiracy to commit theft of firearms; theft of firearms; conspiracy to possess stolen firearms; and possession of stolen firearms. 

            According to information presented in court, Harris, along with his co-defendants, committed numerous home invasion robberies, burglaries, and two carjackings in and around Plano and Frisco, Texas.  Harris was armed during the carjackings.  He was indicted on Feb. 11, 2016, by a federal grand jury.  Harris’ co-defendants all pleaded guilty and have already been sentenced.  Alton Marshall, 26, of Frisco, Texas, was sentenced to 141 months in federal prison; Derek Polk, 28, of Irving, Texas was sentenced to 240 months in federal prison; and Kenneth Cash, 31, of the Colony, Texas, received a sentence of 300 months.  Harris was the only defendant who proceeded to trial.  Testimony during trial revealed that Harris was the ring-leader of these violent acts and that he recruited others to assist in the commission of the crimes.           

            “These were violent crimes, and this defendant terrorized many people,” said U.S. Attorney Brown.  “These are the kind of violent offenders that the Justice Department will continue to prioritize for prosecution.”           

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Bedford Police Department, the Plano Police Department, the Frisco Police Department, and the Lewisville Police Department.  This case was prosecuted by Assistant U.S. Attorneys Tracey Batson and Ernest Gonzalez.

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PLANO, Texas – A previous media release by the Collin County District Attorney’s Office detailed the arrest of 17-year-old Matin Azizi-Yarand for state offenses related to a plot to carry out a terror attack in Frisco, Texas. This arrest was the result of several months of investigation by the Federal Bureau of Investigation’s North Texas Joint Terrorism Task Force and local law enforcement agencies.

                Attorneys with the U.S. Attorney’s Office for the Eastern District of Texas have worked closely with task force members during this investigation and will continue to be involved in the prosecution of the matter.    

“Azizi-Yarand, at 17-years-old, is a juvenile under federal law, but is an adult under Texas state law,” said U.S. Attorney Joseph D. Brown. “We determined that the recourse we had under federal juvenile procedure was inadequate to deal with the seriousness of this offense. Federal law limits our ability to certify a juvenile as an adult for prosecution, and in light of that, we determined that state prosecution of the subject will best address the case. We have great confidence in the Collin County District Attorney’s Office and we will work closely with them to assist in this investigation. District Attorney Greg Willis has cross-designated one of our attorneys to serve as a specially appointed Assistant District Attorney and we will provide all of our resources in that effort.”

                Under federal law, a person is considered an adult at 18 years of age.

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SHERMAN, Texas – Last week, the U.S. Attorney for the Eastern District of Texas led a delegation of prosecutors and DEA officials to Bogota and Cartagena, Colombia to meet with Colombian government officials concerning the Eastern District’s prosecution of high-level drug traffickers operating out of Colombia. 

                Over the course of the last three years, federal prosecutors in the Eastern District of Texas have indicted over 200 cocaine traffickers from Central and South America.  The investigations led by the Eastern District of Texas have resulted in the extradition and successful prosecution of some of the most significant cocaine traffickers in the world.  These investigations have directly resulted in the seizure of over 59 tons of cocaine, 23 kilograms of heroin, 1 kilogram of fentanyl, 1,756 kilograms of marijuana, and $12.1 million. 

                “Federal prosecutors from my office along with local agents with the Drug Enforcement Administration have worked very hard to cultivate strong relationships with law enforcement and government officials in the Republic of Colombia,” said Brown. “These relationships have allowed us to prosecute some of the largest cocaine traffickers in the world.  We, in the Eastern District of Texas, are taking the fight to the cocaine cultivators, laboratory owners, traffickers, and corrupt government officials who are flooding our streets with cocaine.  I am proud that our investigations have directly resulted in the seizure of over 59 tons of cocaine and am enthusiastic that we will continue to make great strides in stopping the flow of cocaine before it ever reaches our shores.”

                With the exception of the Southern District of Florida, the Eastern District of Texas prosecutes more Colombian drug traffickers than any other federal district in the country.  Recently, Eastern District of Texas cases have resulted in the seizures of multiple tons of cocaine destined for the United States via semi-submersible watercraft including one prominent seizure, which garnered national and international headlines.

https://www.usatoday.com/story/news/nation-now/2017/12/11/u-s-coast-guard-intercepts-semi-submersible-vessel-packed-3-800-pounds-cocaine/939668001/. 

During his trip to Colombia, U.S. Attorney Brown met with high-level delegations from the Colombian Attorney General’s office and the Colombian Navy.  Most significantly, he held a productive meeting with the Commander of the Colombian National Army and Police, General Jorge Nieto.  U.S. Attorney Brown commented, “In my meetings with General Nieto and others, I was proud to hear what the Eastern District prosecutors have done in this important effort.  I expressed our gratitude for the work done by Colombian authorities and expressed our unwavering commitment to continuing this fight against Transnational Organized Crime.”

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WASHINGTON — Anthony Shelton, 20, and Cameron Ajiduah, 19, were sentenced today to 20 and 15 years in prison, respectively, for assaulting a man because of the victim’s sexual orientation, in violation of 18 U.S.C. § 249, announced the Justice Department’s Civil Rights Division, the U.S. Attorney’s Office for the Eastern District of Texas, and the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives’ Dallas Division.

According to the plea agreements, Shelton and Ajiduah both admitted that they and another defendant, Nigel Garrett, used Grindr, a social media dating platform for gay men, to arrange to meet the victim at his home. Upon entering the victim’s home, the defendants restrained the victim with tape, physically assaulted him, and made derogatory statements about the victim’s sexual orientation.  The defendants brandished a firearm during the home invasion, and they stole the victim’s property, including his motor vehicle.

A federal grand jury previously had returned an eighteen-count superseding indictment that included charges for hate crimes, kidnappings, carjackings, and the use of firearms to commit violent crimes. The indictment also charged Shelton, Ajiduah, along with other defendants, Nigel Garrett and Chancler Encalade, with conspiring to cause bodily injury because of their victims’ sexual orientation during home invasions in Plano, Frisco, and Aubrey, Texas, from Jan. 17 to Feb. 7, 2017. All four defendants subsequently pleaded guilty to hate crime charges from this indictment, and admitted that they targeted victims because of their sexual orientation. Earlier this year, Garrett was sentenced to 15 years in prison, and Encalade was recently sentenced to 10 years in prison.   

“The Department of Justice will not tolerate any act of violence targeting individuals based on their sexual orientation, gender identity, race, color, religion, disability, or national origin,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “The Department will continue to investigate and prosecute hate crimes cases.”

“This case highlights the danger of the internet and specifically, online apps,” said U.S. Attorney Joseph D. Brown for the Eastern District of Texas.  “In this case, the defendants misused the internet for sinister purposes in order to target an innocent man based on his sexual orientation, causing him bodily harm and damage to his property.”

The investigation was conducted by the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Plano Police Department, and the Frisco Police Department.  The case was prosecuted by Assistant U.S. Attorney Tracey Batson of the U.S. Attorney’s Office for the Eastern District of Texas and Trial Attorney Saeed Mody of the Civil Rights Division.

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PLANO, Texas –  Gainesville Hospital District d/b/a North Texas Medical Center will pay the United States $1,320,000 to resolve concerns surrounding payment arrangements with a physician, announced United States Attorney Joseph D. Brown.

“The United States Attorney’s Office for the Eastern District of Texas is pleased that North Texas Medical Center voluntarily self-disclosed potential health care compliance concerns,” said U.S. Attorney Brown.  “We continue to encourage health care providers to proactively identify and disclose compliance concerns to our office.  This process is almost always more efficient and less costly than defending enforcement actions.”

On Sep. 26, 2017, North Texas Medical Center made a submission pursuant to OIG-HHS’s Self Disclosure Protocol.  North Texas Medical Center then made a similar submission to the United States Attorney’s Office for the Eastern District of Texas seeking resolution under the federal False Claims Act. 

Based on these self-disclosures, the United States agreed to resolve potential claims arising from remuneration paid by North Texas Medical Center to Dr. Ramin Roufeh that was allegedly above fair market value, not commercially reasonable, and/or not appropriately memorialized in writing.  The United States contended that at least one purpose of the remuneration provided by North Texas Medical Center to Dr. Roufeh was to induce the referral of federal health care program patients and that the remuneration induced such referrals in violation of the federal Anti-Kickback Statute, 42 U.S.C. § 1320a-7b(b)(2). 

This matter was investigated by the U.S. Department of Health and Human Services – Office of the Inspector General (HHS-OIG) and the United States Attorney’s Office for the Eastern District of Texas.  The civil settlement was negotiated by Assistant U.S. Attorney Joshua M. Russ. 

The claims resolved by the settlement are allegations only; there has been no determination of liability.

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BEAUMONT, Texas – A Houston-area man and woman have been sentenced to federal prison for violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.

Johntre Johnson, 21, of Houston, pleaded guilty on Aug. 22, 2017, to conspiracy to commit Hobbs Act robbery and was sentenced to 96 months in federal prison today by U.S. District Judge Ron Clark.  Nakendra Dominique McKnight, 32, of Humble, Texas, pleaded guilty on Aug. 22, 2017, to conspiracy to commit Hobbs Act robbery and was sentenced to 90 months in federal prison today by Judge Clark.

According to information presented in court, on Feb. 22, 2017, law enforcement officers in Beaumont attempted to stop a white Cadillac Escalade truck in the vicinity of Dowlen Road and Delaware. The vehicle would not stop and instead led officers on a vehicle pursuit until it came to a stop in the 3500 block of Delaware. The three men in the vehicle fled on foot but were captured and detained by law enforcement officers. A fourth man, whose involvement was already known to officers, was located and detained at a nearby service station. Interviews with the suspects revealed an alleged conspiracy to commit an armed robbery in violation of the Hobbs Act in Beaumont, but law enforcements officers successfully intervened and prevented them from succeeding. Johnson and McKnight were charged along with six others in a five-count indictment returned on Mar. 22, 2017.

                This case was investigated by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Beaumont Police Department, and the Houston Police Department. This case is being prosecuted by Assistant U.S. Attorneys Lesley Woods and John B. Ross.

The Justice Department announced today that Rotech Healthcare Inc., a Florida-based respiratory equipment supplier, has agreed to pay $9.68 million for knowingly submitting false claims for portable oxygen contents to Medicare.  As part of the settlement, Rotech admitted that it knowingly billed portable oxygen contents to Medicare for beneficiaries who did not use or require them.  The Company further admitted to billing Medicare regardless of whether such contents were delivered.

“This settlement serves as a warning to suppliers who bill first and ask questions later,” said Acting Assistant Attorney General Chad A. Readler, head of the Justice Department’s Civil Division.  “We will investigate and take action against companies who cut corners and place profits over compliance with Medicare’s billing requirements.”

Medicare covers rentals of portable and stationary oxygen equipment for up to 36 months and allows suppliers to bill monthly for oxygen to be used with that equipment for up to 24 additional months after the rental period.  Between January 2009 and March 2012, Rotech automatically billed Medicare for portable oxygen contents for all Medicare beneficiaries after the 36-month rental period, without verifying that the beneficiaries used or needed portable oxygen, and without obtaining the requisite proof of delivery.  Rotech continued this practice despite knowing that it resulted in the submission of claims for portable oxygen contents that were ineligible for reimbursement.

“Many people believe that healthcare fraud is a victimless crime; I assure you it is not,” said United States Attorney Joseph D. Brown of the Eastern District of Texas.  “Medicare is funded largely by you and me, the American taxpayers, and fraud contributes to runaway health care costs.  I commend the whistleblower who had the courage to come forward and who worked with investigators to get to the bottom of this case.  Because of her, we were able to recoup millions of dollars improperly paid to Rotech.”

The allegations resolved by this settlement arose from a whistleblower lawsuit filed under the False Claims Act by Janet Hale, a former employee in Rotech’s billing department.  Under the False Claims Act, private citizens can sue on behalf of the government and share in any recovery.  Ms. Hale will receive $1,645,600.

The settlement was the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch, the United States Attorney’s Office for the Eastern District of Texas, the Federal Bureau of Investigation, the Department of Health and Human Services Office of Inspector General, and the Texas Office of the Attorney General – Medicaid Fraud Control Unit. 

The case is captioned United States ex rel. Hale v. Rotech Healthcare Inc., 4:14-cv-545 (E.D. Tex.). 

WASHINGTON – The Justice Department announced today that Rotech Healthcare Inc., a Florida-based respiratory equipment supplier, has agreed to pay $9.68 million for knowingly submitting false claims for portable oxygen contents to Medicare.  As part of the settlement, Rotech admitted that it knowingly billed portable oxygen contents to Medicare for beneficiaries who did not use or require them.  The Company further admitted to billing Medicare regardless of whether such contents were delivered.

“This settlement serves as a warning to suppliers who bill first and ask questions later,” said Acting Assistant Attorney General Chad A. Readler, head of the Justice Department’s Civil Division.  “We will investigate and take action against companies who cut corners and place profits over compliance with Medicare’s billing requirements.”

Medicare covers rentals of portable and stationary oxygen equipment for up to 36 months and allows suppliers to bill monthly for oxygen to be used with that equipment for up to 24 additional months after the rental period.  Between January 2009 and March 2012, Rotech automatically billed Medicare for portable oxygen contents for all Medicare beneficiaries after the 36-month rental period, without verifying that the beneficiaries used or needed portable oxygen, and without obtaining the requisite proof of delivery.  Rotech continued this practice despite knowing that it resulted in the submission of claims for portable oxygen contents that were ineligible for reimbursement.

“Many people believe that healthcare fraud is a victimless crime; I assure you it is not,” said United States Attorney Joseph D. Brown of the Eastern District of Texas.  “Medicare is funded largely by you and me, the American taxpayers, and fraud contributes to runaway health care costs.  I commend the whistleblower who had the courage to come forward and who worked with investigators to get to the bottom of this case.  Because of her, we were able to recoup millions of dollars improperly paid to Rotech.”

The allegations resolved by this settlement arose from a whistleblower lawsuit filed under the False Claims Act by Janet Hale, a former employee in Rotech’s billing department.  Under the False Claims Act, private citizens can sue on behalf of the government and share in any recovery.  Ms. Hale will receive $1,645,600.

The settlement was the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch, the United States Attorney’s Office for the Eastern District of Texas, the Federal Bureau of Investigation, the Department of Health and Human Services Office of Inspector General, and the Texas Office of the Attorney General – Medicaid Fraud Control Unit. 

The case is captioned United States ex rel. Hale v. Rotech Healthcare Inc., 4:14-cv-545 (E.D. Tex.). 

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BEAUMONT, Texas – A 40-year-old Houston man has been arrested for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.

            John D. Leontaritis, owner and operator of Vanderhall Exotics of Houston, and former owner operator of Global Motorcars of Houston, Houston car dealerships that specialize in luxury automobiles, has been charged in a two-count indictment returned by a federal grand jury on Apr. 4, 2018.  Leontaritis was arrested on Apr.6, 2018 and will make an initial appearance before U.S. Magistrate Judge Keith Giblin tomorrow in Beaumont.

            Leontaritis is charged with conspiracy to possess with intent to distribute 500 grams or more of methamphetamine and conspiracy to launder and conceal the proceeds of his drug trafficking organization.  The indictment alleges that from 2013 until June, 2017, Leontaritis conspired with others to traffic methamphetamine for distribution in the Houston and Beaumont, Texas areas.  A federal grand jury has already indicted seven other members of this drug trafficking organization, charging them with manufacturing and distributing thousands of pills containing a mixture of methamphetamine as part of the conspiracy.           

            Under federal statutes, if convicted, Leontaritis faces at least 10 years and up to life in federal prison. 

            If anyone has any information on this case or defendant, please call 713-693-3000.  Callers information will be kept confidential.

This case is being investigated by the U.S. Drug Enforcement Administration, the Houston Police Department and the Internal Revenue Service-CI and prosecuted by Assistant U.S. Attorney Michelle S. Englade. 

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

           Marvin James Rhine, 45, pleaded guilty on Sep. 26, 2017, to conspiracy to commit Hobbs Act robbery and was sentenced to 215 months in federal prison today by U.S. District Judge Ron Clark.  Darrell Paul Williams, 38, pleaded guilty on Sep. 27, 2017, to conspiracy to commit Hobbs Act robbery and was sentenced to 92 months in federal prison today by Judge Clark.  Gerrick Leon Wade, 38, pleaded guilty on Oct. 2, 2017, to conspiracy to commit Hobbs Act robbery and was sentenced to 151 months in federal prison yesterday by Judge Clark.

           According to information presented in court, on Feb. 22, 2017, law enforcement officers in Beaumont attempted to stop a white Cadillac Escalade truck in the vicinity of Dowlen Road and Delaware. The vehicle would not stop and instead led officers on a vehicle pursuit until it came to a stop in the 3500 block of Delaware. The three men in the vehicle fled on foot but were captured and detained by law enforcement officers. A fourth man, whose involvement was already known to officers, was located and detained at a nearby service station. Interviews with the suspects revealed an alleged conspiracy to commit an armed robbery in violation of the Hobbs Act in Beaumont, but law enforcements officers successfully intervened and prevented them from succeeding. Rhine, Williams, and Wade were charged along with five others in a five-count indictment returned on Mar. 22, 2017.

            This case was investigated by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Beaumont Police Department, and the Houston Police Department. This case is being prosecuted by Assistant U.S. Attorneys Lesley Woods and John B. Ross.

BEAUMONT, Texas - A 36-year-old Channelview, Texas woman has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.

               Jessica Burgos pleaded guilty on Dec. 13, 2017, to conspiracy to possess with intent to distribute methamphetamine and was sentenced to 168 months in federal prison today by U.S. District Judge Marcia Crone.

                According to information presented in court, from March 2015 to March 2017, Burgos was involved in a methamphetamine distribution organization which trafficked more than 30 kilograms of drugs through the Houston, Beaumont and Lufkin areas.  As members of the conspiracy began being arrested on drug related charges, other members filled leadership positions within the organization.  In early 2017, Burgos took over leadership of the organization when her nephew and co-defendant, Brian Garcia, was arrested and imprisoned.  Burgos was arrested on Mar. 22, 2017 and indicted by a federal grand jury on Aug. 10, 2017. 

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

TYLER, Texas – U.S. Attorney Joseph D. Brown announced today that six Jacksonville, Texas men have pleaded guilty following a drug trafficking investigation in the Eastern District of Texas.

Lenard Donnell Atkins, 31, pleaded guilty to possession with intent to distribute methamphetamine, cocaine, and other controlled substances.

Keyonta Monquan Johnson, 23, pleaded guilty to distribution of methamphetamine near a playground. 

Carlos Brejohn Battle, 33, Carlton Deshan Johnson, 28, Jimendrick Clenon Shedd, 37, and David Lee Williams, 32, each pleaded guilty to possession with intent to distribute methamphetamine before Judge Love. 

The plea hearings were held on Mar. 21 and Mar. 22, 2018 before U.S. Magistrate Judge John D. Love. 

The defendants were named in an indictment returned by a federal grand jury on Oct. 18, 2017, charging 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. 

                Under federal statutes, the defendants face sentences ranging from five to 80 years in federal prison.  The sentences will be determined by the court based on the advisory sentencing guidelines and other statutory factors.  Sentencing hearings will be scheduled after the completion of presentence investigations by the U.S. Probation Office.

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

BEAUMONT, Texas – A 39-year-old Beaumont, Texas man has been sentenced to federal prison for bank robbery in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.

Joseph Dee Carter pleaded guilty on Oct. 26, 2017, to bank robbery and was sentenced to 77 months in federal prison today by U.S. District Judge Thad Heartfield.

According to information presented in court, on July 7, 2017, Carter robbed the DuGood Federal Credit Union on Eastex Freeway in Beaumont.  Surveillance video showed that Carter entered the credit union lobby and then had a discussion with an employee about temporary checks.  A few minutes later, the video shows Carter walking across the lobby to the restroom before returning to the teller counter and placing a note written on a paper towel on the counter in front of the teller, demanding money.  After receiving money from the teller, Carter fled the credit union and was seen driving away in a vehicle.  Police found the vehicle, but Carter had fled on foot.  Later that day, after having been identified by witnesses and examination of the video, Carter was arrested while walking on Lucas Street. Carter was indicted by a federal grand jury on Aug. 9, 2017.  

            This case was investigated by the Federal Bureau of Investigation and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney Randall L. Fluke.

BEAUMONT, Texas – A 35-year-old Beaumont, Texas man has been sentenced to federal prison for firearms violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.

Michael Anthony Victoria pleaded guilty on Nov. 9, 2017, to being a felon in possession of a firearm and was sentenced to 210 months in federal prison today by U.S. District Judge Marcia Crone.           

          According to information presented in court, on Dec. 10, 2016, Victoria was arrested and charged with being a felon in possession of a firearm and ammunition.  As a convicted felon, Victoria is prohibited by federal law from owning or possessing firearms or ammunition.  Victoria was indicted by a federal grand jury on July 6, 2017 and charged with federal 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 Bureau of Alcohol, Tobacco, Firearms, and Explosives and prosecuted by Assistant U.S. Attorney Randall L. Fluke.

BEAUMONT, Texas - A Houston man and woman have been sentenced to federal prison for violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.

Eric Ray Johnson, 37, pleaded guilty on Sep. 26, 2017, to conspiracy to commit Hobbs Act robbery and was sentenced to 72 months in federal prison today by U.S. District Judge Thad Heartfield.  Trashawna Day, 22, pleaded guilty on Sep. 27, 2017, to conspiracy to commit Hobbs Act robbery and was sentenced to 63 months in federal prison today by Judge Heartfield. 

According to information presented in court, on Feb. 22, 2017, law enforcement officers in Beaumont attempted to stop a white Cadillac Escalade truck in the vicinity of Dowlen Road and Delaware. The vehicle would not stop and instead led officers on a vehicle pursuit until it came to a stop in the 3500 block of Delaware. The three men in the vehicle fled on foot but were captured and detained by law enforcement officers. A fourth man, whose involvement was already known to officers, was located and detained at a nearby service station. Interviews with the suspects revealed an alleged conspiracy to commit an armed robbery in violation of the Hobbs Act in Beaumont, but law enforcements officers successfully intervened and prevented them from succeeding. Johnson and Davy were charged along with six others in a five-count indictment returned on Mar. 22, 2017.

                This case was investigated by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Beaumont Police Department, and the Houston Police Department. This case is being prosecuted by Assistant U.S. Attorneys Lesley Woods and John B. Ross.

TYLER, Texas – A 19-year-old Athens, Texas, man has pleaded guilty to 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 today before U.S. Magistrate Judge John D. Love. 

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. 

                Under federal statutes, Fulton 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 Federal Bureau of Investigation and the U.S. Postal Inspection Service.  This case is being prosecuted by Assistant U.S. Attorney Frank Coan and Trial Attorney Jerome Teresinski of the Department of Justice National Security Division. 

BEAUMONT, Texas – A 41-year-old Buffalo, New York, man has pleaded guilty to drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.

           Roosevelt Appleton, St., pleaded guilty to conspiracy to possess with intent to distribute cocaine today before U.S. Magistrate Judge Zack Hawthorn.

           According to information presented in court, beginning in 2015, following his release from state prison in New York, Appleton began conspiring with others to traffic drugs through the Eastern District of Texas to the Houston area.  Appleton employed various means to facilitate the scheme including the use of the U.S. Postal Service, Federal Express and specially outfitted vehicles that contained hidden compartments. On June 15, 2016, a vehicle driven by Appleton’s couriers was stopped for a traffic violation in Jefferson County, Texas.  A search of the vehicle revealed six bundles of cocaine hidden in a secret compartment in the vehicle.  Appleton admitted to being responsible for the distribution of between 15 and 50 kilograms of cocaine as part of this conspiracy.  Appleton was indicted by a federal grand jury on Oct. 18, 2017.   

            Under federal statutes, Appleton faces a minimum of ten 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 was investigated by the Drug Enforcement Administration, the Beaumont Police Department and the Houston Police Department.  This case is being prosecuted by Assistant U.S. Attorneys Randall L. Fluke and John Craft. 

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

Robert Lee Johnson, Jr., pleaded guilty on Oct. 31, 2017, to being a felon in possession of a firearm and was sentenced to 44 months in federal prison today by U.S. District Judge Ron Clark.

            According to information presented in court, on Feb. 22, 2016, law enforcement officers executed a search warrant at Johnson’s residence on 5th Avenue in Port Arthur.  During the execution of the warrant, officers discovered drug paraphernalia, a digital scale, Johnson’s prisoner identification card, ammunition, and a loaded semi-automatic handgun.  Further investigation revealed Johnson was a convicted felon, having been previously found guilty of numerous felony offenses, including multiple convictions for possession of cocaine.  As a convicted felon, Johnson is prohibited from owning or possessing firearms or ammunition. Johnson was indicted by a federal grand jury on Aug. 10, 2017 and charged with federal firearms violations.

This case was prosecuted as part of Project Safe Neighborhoods, 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, the Port Arthur Police Department, and the Jefferson County Crime Lab.  This case was prosecuted by Assistant U.S. Attorney Randall L. Fluke.

BEAUMONT, Texas - A 29-year-old Beaumont, Texas woman has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.

Heather Nichole Lugo pleaded guilty on Oct. 11, 2016, to conspiracy to distribute, manufacture, and possess with intent to distribute crack cocaine and was sentenced to 70 months in federal prison today by U.S. District Judge Marcia Crone.

            According to information presented in court, on Nov. 11, 2015, law enforcement officers executed a search warrant at Lugo’s residence in Beaumont.  During the execution of the warrant, officers discovered crack cocaine, firearms, marijuana and Hydrocodone.  Lugo absconded while awaiting sentencing and remained a fugitive until her arrest on Dec. 1, 2017, resulting in an increased sentence.

This case was prosecuted as part of Project Safe Neighborhoods, 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 U.S. Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Beaumont Police Department, and prosecuted by Assistant U.S. Attorney Randall L. Fluke.

BEAUMONT, Texas — A 45-year-old Kountze, Texas man has been sentenced to 10 years in federal prison for child exploitation violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.

John Edward Burns pleaded guilty on Aug. 16, 2017 to enticement of a minor to engage in sexual activity and was sentenced to 120 months in federal prison today by U.S. District Judge Marcia Crone. 

According to information presented in court, on July 17, 2017, Burns began a conversation through social media and a mobile messaging application with a person he believed to be a 15-year-old female, but was actually an undercover investigator.  During the course of the conversation, Burns attempted to persuade the child to send him nude photos of herself.  Burns further made plans to meet the child and take her to a Tyler, Texas motel and engage in sexual intercourse.  Burns was arrested on July 19, 2017 at a Beaumont park when he arrived to meet the person he believed to be a minor female.   

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

This case was investigated by the HSI-ICE, the Beaumont Police Department and the Texas Attorney General and prosecuted by Assistant U.S. Attorney Christopher T. Tortorice.

TYLER, Texas – A 48-year-old Kilgore, Texas man has been sentenced to federal prison for bank robberies in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.

Hector Camargo pleaded guilty on Sep. 27, 2017 to bank robbery and use of a firearm during a violent crime and was sentenced to 240 months in federal prison by U.S. District Judge Ron Clark on Feb. 27, 2018.

According to information presented in court, Camargo robbed three Gregg County banks over a five-month span between November 2016 and April 2017.  On Nov. 14, 2016, Camargo robbed the Citizens National Bank in Longview, Texas, using a threat note that referenced a weapon, and stealing $5,574 from a teller.  On Dec. 16, 2016, Camargo robbed the Citizens National Bank in Kilgore, Texas, brandishing a handgun, and stealing $4,218 from a teller.  On Apr. 21, 2017, Camargo robbed the First National Bank of Hughes Springs in Kilgore, Texas, brandishing a handgun, and stealing $7,802 from a teller.  Camargo was arrested on Apr. 21, 2017, the same day as the third robbery, after a citizen spotted his truck driving through town.  The citizen had heard a description of the truck on a ‘be on the lookout’ that was broadcast over the police band radio. 

            This case was investigated by the Federal Bureau of Investigation, the Texas Department of Public Safety, the Longview Police Department, and the Kilgore Police Department and prosecuted by Assistant U.S. Attorney Ryan Locker.

SHERMAN, Texas – A 52-year-old Dallas man has been sentenced to federal prison for investment fraud in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.

Carlton Chadbourne Sayers, also known as Chad Sayers, pleaded guilty on Sep. 18, 2017, to wire fraud and bank fraud and was sentenced to 132 months in federal prison by U.S. District Judge Amos Mazzant on Feb. 27, 2018.

According to information presented in court, beginning in 2009, Sayers devised a real estate investment scheme in which individuals loaned or invested money with him and Wellington and Franklin Financial, a business that he controlled, representing that this money would be used to purchase and/or renovate various residential real properties, to be secured by an interest in the property.  Sayers promised a significant rate of return (such as ten percent) to the investors, and frequently secured multiple investments based on a single piece of real property.  However, Sayers did not invest the funds as he had represented to investors and did not provide the secured interests in real property as he represented to the investors.  On some occasions, when Wellington and Franklin Financial or Sayers did actually own the residential properties, the property had been purchased with a pre-existing loan from a seasoned investor, and was already acting as security to that investor.   Sayers was ordered to pay restitution to his victims in the amount of $2,102,617.27.               

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

BEAUMONT, Texas - A 29-year-old Beaumont, 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.

Gerardo Federico Rodriguez pleaded guilty on July 10, 2017, to possession with intent to distribute methamphetamine and was sentenced to 120 months in federal prison today by U.S. District Judge Marcia Crone.

                According to information presented in court, on Jan. 27, 2017, law enforcement officers executed a search warrant at Rodriguez’s residence on West Lynwood in Beaumont.  During the execution of the warrant, officers discovered a loaded semi-automatic handgun on a table in plain view along with a ledger reflecting drug transactions of over $30,000.  At another location in the home, officers located a backpack containing another loaded handgun and a bag of methamphetamine.  A television in a bedroom displayed a video surveillance feed of the property.  Additional firearms, as well as methamphetamine and cocaine were located in the garage.  Rodriguez was indicted by a federal grand jury on Mar. 1, 2017 and charged with drug trafficking violations. 

This case was prosecuted as part of Project Safe Neighborhoods, 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 U.S. Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Beaumont Police Department, and prosecuted by Assistant U.S. Attorney Randall L. Fluke.

SHERMAN, Texas –  Joseph D. Brown has taken the oath of office to become the 35th  United States Attorney for the Eastern District of Texas. Brown was nominated by President Donald Trump on Nov. 2, 2017 and confirmed by the U.S. Senate on Feb. 15, 2018.  He took the oath of office today from U.S. District Judge Amos Mazzant. 

“It is a tremendous honor and privilege to join the United States Attorney’s Office,” said U.S. Attorney Brown.  “I appreciate the President’s confidence and I look forward to making a difference in East Texas. Prosecution and law enforcement are in my blood, and helping to keep our communities safe is important work that I really love.” 

                Brown, 47, of Sherman, Texas, is the top-ranking federal law enforcement official in the Eastern District of Texas, which is comprised of 43 counties stretching from the Oklahoma border to the Gulf of Mexico. The district includes six fully staffed offices in Beaumont, Plano, Tyler, Sherman, Texarkana, and Lufkin with 93 employees, including 46 prosecutors.  Brown has been the District Attorney for Grayson County, Texas, for the last 17 years.  He was previously an attorney with the Dallas law firm of Cowles & Thompson, P.C., and had a private practice in Sherman. 

                Brown received his undergraduate degree from the University of Texas at Austin, his law degree from the Southern Methodist University School of Law, and is a member of the State Bar of Texas.  Brown and his wife, Megan, have been married for over 20 years and are the proud parents of two daughters in high school.

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BEAUMONT, Texas – Attorney General Jeff Sessions and law enforcement partners announced today the largest coordinated sweep of elder fraud cases in history.   The cases involve more than two hundred and fifty defendants from around the globe who victimized more than a million Americans, most of whom were elderly.  The cases include criminal, civil, and forfeiture actions across more than 50 federal districts.  Of the defendants, 200 were charged criminally.  In each case, offenders engaged in financial schemes that targeted or largely affected seniors.  In total, the charged elder fraud schemes caused losses of more than half a billion dollars.  The Department coordinated its announcement with the FTC and state Attorneys General, who independently filed numerous cases targeting elder frauds within the sweep period.

Attorney General Sessions was joined in the announcement by FBI Acting Deputy Director David Bowdich; Chief Postal Inspector Guy Cottrell; FTC Acting Chairman Maureen Ohlhausen; and Kansas Attorney General and President of the National Association of Attorneys General Derek Schmidt.

“The Justice Department and its partners are taking unprecedented, coordinated action to protect elderly Americans from financial threats, both foreign and domestic,” said Attorney General Sessions.  “Today’s actions send a clear message:  we will hold perpetrators of elder fraud schemes accountable wherever they are.  When criminals steal the hard-earned life savings of older Americans, we will respond with all the tools at the Department’s disposal – criminal prosecutions to punish offenders, civil injunctions to shut the schemes down, and asset forfeiture to take back ill-gotten gains.  Today is only the beginning.  I have directed Department prosecutors to coordinate with both domestic law enforcement partners and foreign counterparts to stop these criminals from exploiting our seniors.”

"Fraud directed at the elderly puts at risk the financial fruits of the labors of those who spent a lifetime improving our communities and our nation,” said Eastern District of Texas U.S. Attorney Alan R. Jackson.  “They should be able to enjoy their hard earned savings without worrying about swindlers.  It is important that we use all means at our disposal to bring con artists who target the elderly to justice.”

In the Eastern District of Texas, a 67-year-old Houston man, Lawrence Allen Deshetler, was sentenced on Nov. 6, 2017, to 60 months in federal prison and ordered to pay restitution to his victims.  Deshetler, a certified financial planner and investment advisor, devised an investment scheme to defraud his victims, many of whom were elderly, of nearly $2 million.   

In support of the Department's Elder Fraud Sweep, U.S. Attorney Jackson has assured the appointment of an Elder Justice Coordinator (EJC) for the Eastern District of Texas.  The mission of the EJC is to serve as the district’s legal counsel on matters relating to elder abuse and to facilitate the prosecution of elder abuse cases.  The EJC will work with our federal, state and local law enforcement partners to determine how best to efficiently and aggressively investigate and prosecute elder fraud cases and as well as how best to conduct community outreach.  There is one EJC for each of the four federal judicial districts in Texas.  All four EJCs have made preliminary coordination efforts with a view to combining efforts statewide where possible.

The actions charged a variety of fraud schemes, ranging from mass mailing, telemarketing and investment frauds to individual incidences of identity theft and theft by guardians.  A number of cases involved transnational criminal organizations that defrauded hundreds of thousands of elderly victims, while others involved a single relative or fiduciary who took advantage of an individual victim.  The schemes charged in these cases caused losses to more than a million victims.

“Winners. That’s what so many of the people who received these solicitations in the mail thought they were. But they’re not. They are victims of scams that Postal Inspectors have seen and investigated for decades. In fact, some of the same operators we encountered 20 years ago are back. But so are we. Yesterday, Postal Inspectors around the country executed search warrants on 14 locations that some of these same operators used to run their scams. We’re letting the American public know – and especially our vulnerable older Americans – that Postal Inspectors are working hard to protect them and ensure their confidence in the U.S. Mail,” said Chief Postal Inspector Cottrell.

“Over the last year, the FBI has initiated more than 200 financial crimes cases involving elderly victims who were devastated financially, emotionally, mentally and physically. Picking up the pieces of these fraud schemes can be equally as traumatizing for the caregivers of these elderly victims,” said Acting Deputy Director Bowdich.  “The FBI reminds seniors and their caregivers to be vigilant. If any person believes they are the victim of, or have knowledge of fraud involving an elderly person, regardless of the loss amount, they should report it to the FBI.”

Actions against the Mass-mailing Fraud Industry

As part of the initiative, the Department’s Consumer Protection Branch, working with the U.S. Attorney’s Office for the Eastern District of New York and others, brought numerous cases this past week in a coordinated strike against more than 43 mass-mailing fraud operators, including criminal charges against six individuals.  In addition, law enforcement agents executed 14 premises search warrants from Las Vegas to south Florida, served numerous asset seizure warrants, and coordinated with the Vancouver Police in Canada, who executed over 20 warrants, including search warrants on business premises.

“The defendants targeted elderly and vulnerable consumers both in the United States and abroad, using U.S. addresses and the U.S. mails to try to legitimize their fraudulent schemes,” said U.S. Attorney for the Eastern District of New York Richard P. Donoghue.  “They sold false promises of life-changing prizes that never came true.  We will pursue the perpetrators of these mail schemes wherever they are located, and hold them accountable.”

These recently filed cases particularly targeted transnational criminal actors who collectively defrauded at least a million victims out of hundreds of millions of dollars.  Indeed, just one of the schemes prosecuted criminally by the Consumer Protection Branch operated from 14 foreign countries to cost American victims more than $30 million.  Click here for map showing a transnational, single fraud scheme.

Mass-mailing fraud inflicts hundreds of millions of dollars in losses to elderly U.S. victims each year.  Department prosecutors and U.S. Postal Inspectors have taken a comprehensive approach to combatting this fraud, disrupting and prosecuting individuals who manage the schemes, artists who draft the fraudulent solicitations, list brokers who supply victim lists, and individuals who collect victim payments.

Actions against other elder fraud schemes

Prosecutors across the country from the Criminal Division’s Fraud Section, the Consumer Protection Branch and the U.S. Attorney’s Offices have heeded the call to focus resources on elder fraud cases.  Over 50 U.S. Attorney’s Offices and Department Components filed elder fraud cases in the last year.  Some examples of the elder financial exploitation prosecuted by the Department include:

• “Lottery phone scams,” in which callers convince seniors that a large fee or taxes must be paid before one can receive lottery winnings;
• “Grandparent scams,” which convince seniors that their grandchildren have been arrested and need bail money;
• “Romance scams,” which lull victims to believe that their online paramour needs funds for a U.S. visit or some other purpose;
• “IRS imposter schemes,” which defraud victims by posing as IRS agents and claiming that victims owe back taxes;
• “Guardianship schemes,” which siphon seniors’ financial resources into the bank accounts of deceitful relatives or guardians.

Many of these cases illustrate how an elderly American can lose his or her life savings to a duplicitous relative, guardian, or stranger who gains the victim’s trust.  The devastating effects these cases have on victims and their families, both financially and psychologically, make prosecuting elder fraud a key Department priority.

Public Education

                The Department has partnered with Senior Corps, a national service program administered by the federal agency the Corporation for National and Community Service, to educate seniors and prevent further victimization. The Senior Corps program engages more than 245,000 older adults in intensive service each year, who in turn, serve more than 840,000 additional seniors, including 332,000 veterans.

Using its vast network operating in more than 30,000 locations, Senior Corps volunteers will communicate about elder fraud to potential victims across the country and will use their skills, knowledge and experience to educate their peers and caregivers about the most prolific types of schemes and how to avoid them.

Coordination with state officials

Kansas Attorney General Schmidt highlighted the cases filed by state Attorneys General targeting elder frauds within in the sweep period, and he emphasized efforts at the state level to combat elder abuse and protect seniors from fraud and exploitation.  He encouraged all of the state Attorneys General to devote enforcement and public education resources to preventing financial exploitation of senior citizens.

Coordination with foreign law enforcement

Exceptional assistance from foreign law enforcement partners amplified the effectiveness of the Department’s initiative.  The sweep announced today benefited greatly from the work of the International Mass-Marketing Fraud Working Group (IMMFWG), a network of civil and criminal law enforcement agencies from Australia, Belgium, Canada, Europol, the Netherlands, Nigeria, Norway, Spain, the United Kingdom and the United States.  The IMMFWG is co-chaired by the U.S. Department of Justice and FTC, and law enforcement in the United Kingdom, and serves as a model for international cooperation against specific threats that endanger the financial well-being of each member country’s residents.  Attorney General Sessions expressed gratitude for the outstanding efforts of the working group, including law enforcement action taken as part of the sweep by the Vancouver Police Department in Canada to halt mass mailing schemes that defrauded hundreds of thousands of elderly victims worldwide.

Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP.  The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office of Victims of Crime, which can be reached at www.ovc.gov. 

TYLER, Texas – A 48-year-old Mexican national illegally residing in Carthage, Texas, has been found guilty of drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Alan R. Jackson today.

Conrado Depaz Arellano was found guilty by a jury of conspiracy to possess with intent to distribute cocaine today following a three-day trial before U.S. District Judge Ron Clark.  Additionally, Arellano pleaded guilty on Feb. 12, 2018, to being illegally in the United States after having been deported.

According to information presented in court, on Aug. 2, 2017, a vehicle was stopped for a traffic violation in the Western District of Texas by U.S. Border Patrol Agents. The vehicle contained two kilograms of cocaine, which was intended to be delivered to Arellano in Carthage, Texas.  Federal agents arranged for the cocaine to be delivered to Arellano in Carthage as planned and at that time arrested him for drug trafficking crimes.  At the time of his arrest, Arellano was in possession of two Mexican identification documents.  Further investigation revealed Arellano had been deported to Mexico in 2012 and 2007 and had since reentered the United States illegally.  Arellano was indicted by a federal grand jury on Sep. 20, 2017.   

                Under federal statutes, Arellano faces up to 40 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 Drug Enforcement Administration, U.S. Border Patrol and ICE-Homeland Security Investigations.  This case is being prosecuted by Assistant U.S. Attorneys Allen Hurst and Jim Noble.

PLANO, Texas –  A Plano, Texas couple has been sentenced to federal prison for making false statements to federal agents in the Eastern District of Texas, announced U.S. Attorney Alan R. Jackson.

Mohommad Ali, 57, and his wife, Sumaiya Ali, 49, pleaded guilty on Dec. 13, 2017 to making false statements to the Federal Bureau of Investigation regarding international terrorism.   Mohommad Ali was sentenced to 12 months in federal prison today by U.S. District Judge Marcia Crone, while Sumaiya Ali was sentenced to 30 months in prison.

According to information presented in court, in 2014 and 2015 the Alis were in communication with their sons whom the Alis knew were in Syria fighting for ISIS.  In May 2015, the Alis were questioned by agents with the FBI about their sons' whereabouts.  The Alis denied any knowledge that their sons were in Syria or that their sons were associated with ISIS. 

"There is an object lesson here," said U.S. Attorney Alan R. Jackson.  "We will remain vigilant against those who support terrorism and those who attempt to shield supporters of terrorism from scrutiny." 

This case was investigated by the Federal Bureau of Investigation and was prosecuted by the U.S. Attorney’s Office for the Eastern District of Texas and the Counterterrorism Section of the U.S. Department of Justice in Washington, D.C.

Mark Avrey Rudd was arrested today pursuant to a criminal complaint issued by the U.S. District Court charging him with possession of an unregistered destructive device.  Rudd appeared in federal court this afternoon on the charges.

BEAUMONT, Texas – A 27-year-old federal prison inmate has been indicted for escaping from prison and returning with contraband announced U.S. Attorney Alan R. Jackson today.

                Joshua Randall Hansen was charged in the two-count indictment with escape from a federal facility and possession with intent to distribute a controlled substance.  The indictment was returned by a federal grand jury on Feb. 7, 2018.

                According to the indictment, on Jan. 24, 2018, law enforcement officers arrested Hansen outside the perimeter of the prison camp at the Federal Correctional Complex in Beaumont, Texas.  Hansen is a federal inmate and was not authorized to be outside the facility.  At the time of his arrest, it is alleged that Hansen was on his way back to the prison camp and was in possession of marijuana and alcohol that he intended to distribute within the compound. 

If convicted, Hansen faces up to an additional five years in federal prison.

This case is being investigated by the U.S. Marshals Service, the Jefferson County Sheriff’s Office and the Bureau of Prisons.  This case is being prosecuted by Assistant U.S. Attorney Randall L. Fluke.

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

Peter Zuccarelli, 62, of Plano, Texas was sentenced today to 46 months in prison for conspiring to smuggle and illegally export from the U.S. in violation of the International Emergency Economic Powers Act (IEEPA), radiation hardened integrated circuits (RHICs) for use in the space programs of China and Russia.  Zuccarelli was also sentenced to three years supervised release and a $50,000 fine.

Acting Assistant Attorney General for National Security Dana J. Boente and U.S. Attorney for the Eastern District of Texas Alan R. Jackson made the announcement after Zuccarelli was sentenced by U.S. District Judge Amos Mazzant. 

According to the plea agreement, between approximately June 2015 and March 2016, Zuccarelli and his co-conspirators agreed to illegally export RHICs to China and Russia.  RHICs have military and space applications, and their export is strictly controlled.  In furtherance of the conspiracy, Zuccarelli’s co-conspirator received purchase orders from customers seeking to purchase RHICs for use in China’s and Russia’s space programs.  Zuccarelli received these orders from his co-conspirator, as well as payment of approximately $1.5 million to purchase the RHICs for the Chinese and Russian customers.  Zuccarelli placed orders with U.S. suppliers, and used the money received from his co-conspirator to pay the U.S. suppliers.  In communications with the U.S. suppliers, Zuccarelli certified that his company, American Coating Technologies, was the end user of the RHICs, knowing that this was false.  Zuccarelli received the RHICs he ordered from U.S. suppliers, removed them from their original packaging, repackaged them, falsely declared them as “touch screen parts,” and shipped them out of the U.S. without the required licenses.  He also attempted to export what he believed to be RHICs.  In an attempt to hide the conspiracy from the U.S. government, he created false paperwork and made false statements.

This case was investigated by the Dallas and Denver Offices of the Department of Homeland Security, Homeland Security Investigations; the FBI; the Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement; the Department of Defense, Defense Criminal Investigative Service; and the U.S. Postal Inspection Service.  This case was prosecuted by the U.S. Attorney’s Office for the Eastern District of Texas and the Counterintelligence and Export Control Section of the Justice Department’s National Security Division.

SHERMAN, Texas - Peter Zuccarelli, 62, of Plano, Texas was sentenced today to 46 months in prison for conspiring to smuggle and illegally export from the U.S. in violation of the International Emergency Economic Powers Act (IEEPA), radiation hardened integrated circuits (RHICs) for use in the space programs of China and Russia.  Zuccarelli was also sentenced to three years supervised release and a $50,000 fine.

Acting Assistant Attorney General for National Security Dana J. Boente and U.S. Attorney for the Eastern District of Texas Alan R. Jackson made the announcement after Zuccarelli was sentenced by U.S. District Judge Amos Mazzant. 

“The United States rightfully restricts, as a national security concern, the exportation of technological equipment that can, if not controlled, be put to improper use,” said U.S. Attorney Alan R. Jackson.  “This prosecution confirms the resolve of the Eastern District of Texas, working with its law enforcement partners, to enforce those restrictions for the safety of our citizens.”

According to the plea agreement, between approximately June 2015 and March 2016, Zuccarelli and his co-conspirators agreed to illegally export RHICs to China and Russia.  RHICs have military and space applications, and their export is strictly controlled.  In furtherance of the conspiracy, Zuccarelli’s co-conspirator received purchase orders from customers seeking to purchase RHICs for use in China’s and Russia’s space programs.  Zuccarelli received these orders from his co-conspirator, as well as payment of approximately $1.5 million to purchase the RHICs for the Chinese and Russian customers.  Zuccarelli placed orders with U.S. suppliers, and used the money received from his co-conspirator to pay the U.S. suppliers.  In communications with the U.S. suppliers, Zuccarelli certified that his company, American Coating Technologies, was the end user of the RHICs, knowing that this was false.  Zuccarelli received the RHICs he ordered from U.S. suppliers, removed them from their original packaging, repackaged them, falsely declared them as “touch screen parts,” and shipped them out of the U.S. without the required licenses.  He also attempted to export what he believed to be RHICs.  In an attempt to hide the conspiracy from the U.S. government, he created false paperwork and made false statements.

This case was investigated by the Dallas and Denver Offices of the Department of Homeland Security, Homeland Security Investigations; the FBI; the Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement; the Department of Defense, Defense Criminal Investigative Service; and the U.S. Postal Inspection Service.  This case was prosecuted by the U.S. Attorney’s Office for the Eastern District of Texas and the Counterintelligence and Export Control Section of the Justice Department’s National Security Division.

BEAUMONT, Texas - A 35-year-old Port Arthur, Texas man has been sentenced to 80 years in  federal prison for violations related to the murder of a Port Acres woman in the Eastern District of Texas, announced U.S. Attorney Alan R. Jackson today..

Sabino Orlando Martinez was found guilty by a jury on Apr. 27, 2017 of conspiracy to interfere with interstate commerce by robbery, conspiracy to use and carry firearms during a crime of violence, and conspiracy to possess firearms during a drug trafficking crime. Martinez was sentenced to 960 months in federal prison today by U.S. District Judge Marcia A. Crone. 

According to information presented in court, beginning in 2001, Martinez and others started robbing women in the parking lots of stores and businesses in Port Arthur, Texas.  Evidence showed the defendants committed the robberies for the purpose of supporting their crack cocaine habits.  The robberies increased to almost daily between 2009 and 2011.  During the investigation of these crimes, it was discovered that Martinez and his co-defendants were responsible for the May 14, 2010 death of Allison Neil Clark, of Port Acres, Texas.  Clark was shot while driving on West Port Arthur Road.  Once law enforcement officers became aware of Martinez’s co-defendant’s vehicle in the area, they were quickly able to focus on Martinez’s involvement. Video surveillance from area businesses verified the vehicle’s presence in the area at the time of the shooting.  Testimony at trial revealed that Martinez fired the shot that killed Clark. Martinez was indicted by a federal grand jury on May 4, 2016. 

“Allison Neil Clark did not deserve to be executed in front of her child,” said U.S. Attorney Alan R. Jackson.  “But because a group of dedicated investigators refused to give up on this case, Sabino Martinez will spend the rest of his life in a federal prison. We hope this sentencing will bring some sense of closure to this family, and remind our communities that we need to stand together against those who would desecrate them with drugs and the violence it encourages.” 

This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.   Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority.   In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.

This case was investigated by the Port Arthur Police Department, Drug Enforcement Administration and Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorneys Lesley Woods and Joseph R. Batte.

BEAUMONT, Texas – U.S. Attorney Alan R. Jackson announced today that eight individuals have been charged with federal drug trafficking violations in the Eastern District of Texas.

                A federal grand jury in Beaumont returned indictments on Jan. 10, 2018, naming multiple individuals with various drug trafficking violations.  Law enforcement agencies began arresting defendants today.  The following eight defendants are in custody and will make initial appearances before federal magistrate judges in Beaumont:

• • Eric Paul Coleman, 32, of Beaumont, Texas
  • Minnie Coleman, 56, of Beaumont, Texas
  • Christopher Dudley, 39, of Beaumont, Texas
  • Clayton Howard, 40, of Beaumont, Texas
  • Jordan Marshall, 24, of Beaumont, Texas
  • Arthur Jenkins, 46, of Beaumont, Texas
  • Patrice Stocker, 28, of Beaumont, Texas
  • Ivy Chatman, 30, of Beaumont, Texas

                “The Department of Justice has made addressing neighborhood violent crime a priority, as has the Eastern District of Texas,” said U.S. Attorney Alan R. Jackson.  “Today’s indictment of Eric Coleman and his associates by a federal grand jury represents the culmination of months of hard work by the Beaumont Police Department and the Drug Enforcement Administration. This indictment is a direct strike against significant drug trafficking and violent crime in the city of Beaumont, and we will continue to use all available tools and resources to help keep our community safe.” 

                “This is one of the most important investigations for the Beaumont Police Department in recent years,” said Beaumont Police Chief Jimmy Singletary.  “I cannot remember a more violent group of criminal that we’ve ever encountered in this city.  We appreciate the assistance of the U.S. Attorney’s Office and DEA in the investigation and prosecution of these individuals.  I am very proud of our narcotics officers and special assignment unit officers and the excellent way they work with the DEA agents during this complex and high-risk investigation.  In a press conference four months ago, we told the citizens of Beaumont we would get these individuals and we did.  There are more out there and we’re going after them”          

                According to information included in the indictment, from December 2012 through December 2017, Coleman is alleged to have distributed both powder and crack cocaine from Beaumont's North End.  The indictment alleges 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.

                The indictment further alleges Coleman sold both powder and crack cocaine and manufactured crack cocaine from residences he owned in Beaumont’s North End that are within 1000 feet of the Homer Drive Elementary School.  He did the same from the home of his mother, Minnie Coleman, who also helped Eric Coleman distribute powder cocaine and crack cocaine.  Jordan Marshall, Arthur Jenkins, Patrice Stoker, 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 put them into a bank.  To protect his narcotics operation, Coleman and associates such as Jordan Marshall, carried and agreed to carry firearms to protect territory from rival narcotics' dealers.

                Defendants face from between ten years to life in federal prison if convicted.

These cases are being investigated by the U.S. Drug Enforcement Administration and the Beaumont Police Department and being prosecuted by Assistant U.S. Attorney Christopher T. Rapp. 

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

BEAUMONT, Texas – A 45-year-old Houston man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.

Christopher Wade Ferrell pleaded guilty on May 18, 2017, to conspiracy to possess with intent to distribute methamphetamine and was sentenced to 327 months in federal prison on Dec. 15, 2017 by U.S. District Judge Marcia Crone.

                According to information presented in court, on Mar. 11, 2016, deputies with the Jefferson County Sheriff’s Department received information that a large shipment of methamphetamine was to arrive in the Beaumont, Texas area for further distribution.  Law enforcement officers followed the suspects when the driver began driving erratically.  A traffic stop was attempted at which time the driver of the vehicle, Ferrell, pulled into a parking lot then fled the scene in his vehicle when the officers approached the vehicle.  Ferrell continued to evade officers and committed numerous traffic violations while doing so until he crashed into a privacy fence.  Ferrell then fled on foot and was apprehended several homes away. The passengers remained in the vehicle and as officers approached the vehicle, they detected the odor of raw marijuana emanating from the vehicle.  Officers searched the vehicle and located approximately one ounce of marihuana and assorted pills in a passenger’s purse, approximately 10 grams of suspected methamphetamine in a woman’s jacket pocket and approximately 11 other ounces of suspected methamphetamine inside a white plastic grocery bag in the rear seat area.  Officers further located $10,500 in cash and assorted drug paraphernalia inside a backpack in the vehicle.  Ferrell admitted to transporting one kilogram of methamphetamine to Beaumont earlier that same day and admitted that the money found in the backpack was from the sale of the methamphetamine. 

               This case is the result of an extensive joint investigation by the Organized Crime Drug Enforcement Task Force (OCDETF).  The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.  Ferrell was indicted by a federal grand jury on Nov. 2, 2016, and charged with drug trafficking violations.

This case was investigated by the Drug Enforcement Administration, Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, and prosecuted by Assistant U.S. Attorney Michelle S. Englade.

BEAUMONT, Texas – A 33-year-old Houston man has been sentenced to 30 years in federal prison for drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.

Jaime Cruz Romero pleaded guilty on May 17, 2017, to conspiracy to possess with intent to distribute methamphetamine and was sentenced to 360 months in federal prison on Dec. 15, 2017 by U.S. District Judge Marcia Crone.

            According to information presented in court, beginning in March 2014, federal agents began in investigation of a drug trafficking organization that was distributing large amounts of methamphetamine from Houston to Beaumont, Texas and then throughout the United States. Jaime Cruz Romero was identified as a main supplier of methamphetamine, dealing directly with the Mexican sources which was confirmed to be with the Knights of Templar Cartel.  Cruz Romero was identified as a manager or supervisor and was found to be personally responsible for conspiring with others to distribute at least 62 kilograms of methamphetamine, 18 kilograms of cocaine, and 20 pounds of marijuana.  The drugs were brought from Mexico and distributed to sources in the Houston and Beaumont areas for further distribution.

           This case is the result of an extensive joint investigation by the Organized Crime Drug Enforcement Task Force (OCDETF).  The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.  Cruz Romero was indicted by a federal grand jury on Feb. 3, 2016 and charged with drug trafficking violations.   

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

WASHINGTON – Travis Leger of Sulphur, Louisiana, and his half-brother Jason Leckelt of Wilburton, Oklahoma, were sentenced today in federal court in Beaumont, Texas, to 21 months and 16 months in prison, respectively, followed by three years of supervised release for conspiring to violate the Lacey Act by illegally trafficking alligator snapping turtles.

Acting Assistant Attorney General Jeffrey H. Wood of the Justice Department’s Environment and Natural Resources Division and Acting U.S. Attorney Brit Featherston of the Eastern District of Texas made the announcement.

The third defendant in the case, Rickey Simon of Sulphur, Louisiana, was sentenced to three years of probation.  U.S. District Court Judge Marcia A. Crone ordered the sentences. 

Alligator snapping turtles are among the largest freshwater turtles in the world and can grow to weigh more than 200 pounds with a lifespan of more than 100 years.  The turtles are designated as threatened with statewide extinction under Texas State Law, which strictly prohibits anyone from taking, capturing, transporting, or selling these turtles, or attempting to do so.  The turtles are also protected under Louisiana State Law, which makes it illegal to sell or barter for the turtles.  The Lacey Act makes it a crime to engage in the interstate trafficking of wildlife taken in violation of state wildlife protection laws.

“The illegal trafficking of wildlife undermines the vital conservation work being done to protect imperiled species like the alligator snapping turtle,” said Edward Grace, Acting Chief of Law Enforcement for the U.S. Fish and Wildlife Service. ‘Today's sentencing will hopefully serve as a deterrent to others seeking to exploit and profit from the illegal wildlife trade. I applaud the hard work of everyone here at the Service, as well as our partners at Texas Parks and Wildlife and Louisiana Wildlife and Fisheries, for their dedication to the pursuit of justice in cases such as this.”

On August 22, 2017, Leger, Leckelt, and Simon all pleaded guilty to the conspiracy charge.  As part of his guilty plea, Travis Leger admitted to selling a live, illegally taken 171-pound turtle, for $1,000 and another live, illegally taken 168-pound turtle, for $500 in May and June of 2016.  The turtles were later seized by U.S. Fish and Wildlife Agents from the buyer.  Simon admitted that he sold an illegally-trafficked, 120-pound turtle to an undercover Special Agent of the U.S. Fish and Wildlife Service on May 19, 2016.

“This investigation illustrates the outstanding working relationship Texas Game Wardens have with our counterparts at the U.S. Fish and Wildlife Service and the Louisiana Department of Wildlife and Fisheries,” said Col. Grahame Jones, Director of Law Enforcement with the Texas Parks and Wildlife Department. “We commend the U.S. Attorney’s Office and the Justice Department for their efforts to bring these miscreants to justice.”

In April of 2017, Leger, Leckelt, and Simon were all charged in a six-count Indictment.  The conspiracy charged all the defendants with illegally taking more than 60 large turtles during multiple fishing trips they took to Texas in the spring and summer of 2016, and then transporting the turtles back to a property in Sulphur, Louisiana, for sale.  Leger admitted that the market value of all the turtles that he caught illegally in Texas and then sold in Louisiana during the course of the conspiracy was between $40,000 and $95,000.  The market value of the turtles that were illegally trafficked by Leckelt was between $15,000 and $40,000. 

In July of 2016, Federal agents seized about 30 large turtles from ponds located at Leger’s property in Sulphur, Louisiana, pursuant to a federal search warrant.  As part of his guilty plea, Leger agreed to forfeit all of the seized turtles and will permit the U.S. Fish and Wildlife Service to return to his property, drain the ponds, and seize any turtles remaining in the ponds.  All of the turtles seized by the government in this case will be cared for at the U.S. Fish and Wildlife Service Natchitoches Fish Hatchery in Louisiana and used as part of a breeding program to restock the species in its native waterways in the southwestern United States.

In a related case, Montaro Alabimo Williams of Elton, Louisiana, pleaded guilty on December 6, 2017, in federal court in Beaumont, Texas, to a misdemeanor violation of the Lacey Act for knowingly attempting to transport two alligator snapping turtles, which he illegally caught in Texas, to Louisiana on August 12, 2013.  The maximum statutory sentence for this crime is a fine of not more than $100,000 and prison for not more than one year. 

Senior Trial Attorney David P. Kehoe of the Department of Justice, Environmental Crimes Section and Assistant U.S. Attorney Joseph R. Batte of the Eastern District of Texas prosecuted the case.  The case is being investigated by the U.S. Fish and Wildlife Service, the Louisiana Department of Wildlife and Fisheries, and the Texas Parks and Wildlife Department.

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Travis Leger of Sulphur, Louisiana, and his half-brother Jason Leckelt of Wilburton, Oklahoma, were sentenced today in federal court in Beaumont, Texas, to 21 months and 16 months in prison, respectively, followed by three years of supervised release for conspiring to violate the Lacey Act by illegally trafficking alligator snapping turtles.

Acting Assistant Attorney General Jeffrey H. Wood of the Justice Department’s Environment and Natural Resources Division and Acting U.S. Attorney Brit Featherston of the Eastern District of Texas made the announcement.

The third defendant in the case, Rickey Simon of Sulphur, Louisiana, was sentenced to three years of probation.  U.S. District Court Judge Marcia A. Crone ordered the sentences.  

Alligator snapping turtles are among the largest freshwater turtles in the world and can grow to weigh more than 200 pounds with a lifespan of more than 100 years.  The turtles are designated as threatened with statewide extinction under Texas State Law, which strictly prohibits anyone from taking, capturing, transporting, or selling these turtles, or attempting to do so.  The turtles are also protected under Louisiana State Law, which makes it illegal to sell or barter for the turtles.  The Lacey Act makes it a crime to engage in the interstate trafficking of wildlife taken in violation of state wildlife protection laws.

“The illegal trafficking of wildlife undermines the vital conservation work being done to protect imperiled species like the alligator snapping turtle,” said Edward Grace, Acting Chief of Law Enforcement for the U.S. Fish and Wildlife Service. ‘Today's sentencing will hopefully serve as a deterrent to others seeking to exploit and profit from the illegal wildlife trade. I applaud the hard work of everyone here at the Service, as well as our partners at Texas Parks and Wildlife and Louisiana Wildlife and Fisheries, for their dedication to the pursuit of justice in cases such as this.”

On August 22, 2017, Leger, Leckelt, and Simon all pleaded guilty to the conspiracy charge.  As part of his guilty plea, Travis Leger admitted to selling a live, illegally taken 171-pound turtle, for $1,000 and another live, illegally taken 168-pound turtle, for $500 in May and June of 2016.  The turtles were later seized by U.S. Fish and Wildlife Agents from the buyer.  Simon admitted that he sold an illegally-trafficked, 120-pound turtle to an undercover Special Agent of the U.S. Fish and Wildlife Service on May 19, 2016.

“This investigation illustrates the outstanding working relationship Texas Game Wardens have with our counterparts at the U.S. Fish and Wildlife Service and the Louisiana Department of Wildlife and Fisheries,” said Col. Grahame Jones, Director of Law Enforcement with the Texas Parks and Wildlife Department. “We commend the U.S. Attorney’s Office and the Justice Department for their efforts to bring these miscreants to justice.”

In April of 2017, Leger, Leckelt, and Simon were all charged in a six-count Indictment.  The conspiracy charged all the defendants with illegally taking more than 60 large turtles during multiple fishing trips they took to Texas in the spring and summer of 2016, and then transporting the turtles back to a property in Sulphur, Louisiana, for sale.  Leger admitted that the market value of all the turtles that he caught illegally in Texas and then sold in Louisiana during the course of the conspiracy was between $40,000 and $95,000.  The market value of the turtles that were illegally trafficked by Leckelt was between $15,000 and $40,000.  

In July of 2016, Federal agents seized about 30 large turtles from ponds located at Leger’s property in Sulphur, Louisiana, pursuant to a federal search warrant.  As part of his guilty plea, Leger agreed to forfeit all of the seized turtles and will permit the U.S. Fish and Wildlife Service to return to his property, drain the ponds, and seize any turtles remaining in the ponds.  All of the turtles seized by the government in this case will be cared for at the U.S. Fish and Wildlife Service Natchitoches Fish Hatchery in Louisiana and used as part of a breeding program to restock the species in its native waterways in the southwestern United States.

In a related case, Montaro Alabimo Williams of Elton, Louisiana, pleaded guilty on December 6, 2017, in federal court in Beaumont, Texas, to a misdemeanor violation of the Lacey Act for knowingly attempting to transport two alligator snapping turtles, which he illegally caught in Texas, to Louisiana on August 12, 2013.  The maximum statutory sentence for this crime is a fine of not more than $100,000 and prison for not more than one year.  

Senior Trial Attorney David P. Kehoe of the Department of Justice, Environmental Crimes Section and Assistant U.S. Attorney Joseph R. Batte of the Eastern District of Texas prosecuted the case.  The case is being investigated by the U.S. Fish and Wildlife Service, the Louisiana Department of Wildlife and Fisheries, and the Texas Parks and Wildlife Department.

TYLER, Texas –  Two Houston men were sentenced today in separate cases for their involvement with gas pump skimmers, announced Acting U.S. Attorney Brit Featherston.  A skimmer is a device capable of reading and recording account information, including customer names, account numbers, and personal identification numbers, from credit and debit cards.

     “These devices victimize individual cardholders as well as the issuing financial institutions,” said Acting U.S. Attorney Brit Featherston. “The United States Attorney’s Office for the Eastern District of Texas will continue to partner with federal, state, and local law enforcement to combat this threat.”

     On June 22, 2017, Dennys Miguel Arias Gonzalez, 46, of Houston, was indicted along with Tomas Falcon Casanova for violations related to their possession of skimmers and stolen account information.  On September 5, 2017, Gonzalez pleaded guilty to possession of counterfeit and unauthorized access devices.  Today, he was sentenced by U.S. District Judge Ron Clark to 11 months in custody.  Casanova has also pleaded guilty and awaits sentencing.  He faces a term of imprisonment for up to 10 years.

     According to information presented in court, Gonzalez and Casanova were traveling together in Smith County, Texas, when they were found to be in possession of multiple skimmers, counterfeit credit cards, and a laptop computer, containing stolen credit and debit card account information. 

     On June 22, 2017, Beniurkis Hernandez Rodriguez, 31, of Houston, was indicted along with Tamara Valle for violations related to their use and possession of skimmers and stolen credit and debit card information.  On Sep. 5, 2017, Rodriguez pleaded guilty to possession of counterfeit and unauthorized access devices.  Today, he was sentenced by U.S. District Judge Ron Clark to 10 months’ imprisonment.  Valle has also pleaded guilty and was sentenced last week to approximately 10 months’ imprisonment.  Upon release from confinement, Rodriguez and Valle are required to surrender to immigration officials for deportation proceedings.

     According to information presented in court, Rodriguez and Valle had traveled together to a gas station in Longview, Texas, to retrieve two skimmers from pump terminals that had been installed for the purpose of stealing customer account information.  Stolen account data was then downloaded onto a laptop computer that was recovered from their vehicle.

     These matters were investigated by the U.S. Secret Service, the Smith County Sheriff’s Office, the Longview Police Department, the Overton Police Department, and the Tyler Police Department.  The cases were prosecuted by Assistant U.S. Attorneys Frank Coan and Nathaniel Kummerfeld.

PLANO, Texas –  Multiple mobile imaging companies, along with their owners Dennis Whitsell and Jonathan Graham Lane, will pay the United States $300,000 after improperly billing Medicare for transportation charges related to portable x-ray services, announced Acting United States Attorney Brit Featherston.  One of the companies also entered into a deferred prosecution agreement with the United States to resolve swapping allegations, which implicated the Anti-Kickback Statute.

     “The United States Attorney’s Office for the Eastern District of Texas keeps a watchful eye on the use of public funds,” said Acting U.S. Attorney Featherston.  “When a provider fails to comply with Medicare or Medicaid program rules, taxpayers expect to be repaid.” 

     In March 2011, Relators Kevin P. McDonough and Boyd K. Billington filed a lawsuit under the qui tam provisions of the False Claims Act.  Relators filed their suit in the Eastern District of Texas in an action captioned United States ex rel. McDonough, et al.  v. PDQ Imaging Services, LLC, et al., Case Number 4:11-cv-00138.   In their action, Relators alleged, among other things, that the defendants improperly billed for portable x-ray services and unlawfully paid kickbacks to skilled nursing facilities (SNFs) in exchange for patient referrals, an arrangement Relators referred to as “swapping.”

     The United States intervened in the action for purposes of settlement.  Defendants PDQ Imaging Services, LLC, PDQ Ultrasound Services, LLC, PDQ Mobile X-Ray Services, PDQ Mobile X-Ray, LLC, Dennis Whitsell, and Jonathan Graham Lane (together, “Defendants”) agreed to pay the United States $300,000 to resolve allegations that they submitted improper claims to the Medicare program for transportation charges and entered into an agreed judgment in favor of the United States.

     The False Claims Act permits a private citizen (called a “relator”) with knowledge of fraud against the Government to bring a lawsuit on behalf of the United States and to share in the recovery.  Under the settlement announced today, Relators will receive a 19% share of the United States’ recovery. 

     The United States also undertook a criminal investigation regarding the allegations of improper remuneration paid by PDQ Imaging Services, LLC (PDQ) in exchange for referrals from a number of SNFs.  The criminal investigation revealed that from in or around January 2008, and continuing through in or around March 2012, PDQ offered and paid illegal remunerations, in the form of free and significantly discounted portable x-ray services, to administrators of SNFs in exchange for the referral of the SNF’s Medicare beneficiaries to PDQ for the purpose of furnishing portable x-ray services.  The free and significantly discounted portable x-ray services were services covered by the SNF’s Part A per diem payment and were provided to the SNFs in exchange for the SNF referring to PDQ other Federal health care program business, namely Part B business excluded from consolidated billing, that PDQ could bill directly to Medicare. 

     To resolve the matter, PDQ entered into a deferred prosecution agreement with the United States in an action captioned United States  v. PDQ Imaging Services, LLC, Case Number 4:17-CR-199, wherein PDQ acknowledged that the arrangements entered into between PDQ and the SNFs violated the Anti-Kickback Statute and amounted to unlawful “swapping” arrangements.  As part of the agreement, PDQ agreed to cooperate with the government in the investigation and prosecution of the SNFs and individuals involved in the illegal swapping arrangements and to maintain internal controls, including compliance with the Anti-Kickback Statute, and all other applicable federal health care laws. 

     This matter was investigated by the U.S. Department of Health and Human Services – Office of the Inspector General (HHS-OIG), the Texas Office of the Attorney General – Medicaid Fraud Control Unit (OAG-MFCU), and the United States Attorney’s Office for the Eastern District of Texas.  The civil settlement was negotiated by Assistant U.S. Attorney Joshua Russ.  Assistant U.S. Attorneys Nathaniel Kummerfeld and L. Frank Coan, Jr. prosecuted the criminal case for the United States. 

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TYLER, Texas – Acting U.S. Attorney Brit Featherston announced that a Texas pilot has pleaded guilty today to federal wire fraud and arson charges.

     Theodore Robert Wright, III, 32, formerly of Kemah, Texas, pleaded guilty before U.S. Magistrate Judge K. Nicole Mitchell to conspiring to commit wire fraud and conspiring to commit arson.  At sentencing, Wright faces up to 20 years in federal prison on the wire fraud conspiracy count and 5 to 20 years in federal prison on the arson conspiracy count.

     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 assets, including vehicles, aircraft, and vessels.  Wright and his co-conspirators, Shane Gordon, 45, of Houston, Texas, Raymond Fosdick, 41, of Houston, Texas, and Edward Delima, 41, of Honolulu, Hawaii, acquired assets and obtained insurance coverage in amounts exceeding their purchase prices.  Wright and his co-conspirators then devised and carried out schemes to destroy the assets and defraud insurance companies.

     The 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. On September 26, 2017, Delima pleaded guilty to conspiring to commit wire fraud.  On October 12, 2017, Fosdick pleaded guilty to conspiring to commit wire fraud and conspiring to commit arson.  On October 25, 2017, Gordon pleaded guilty to making false statements to a federal agent.

     At sentencing, Delima faces up to 20 years in federal prison.  Fosdick faces up to 20 years in federal prison on the wire fraud conspiracy count and 5 to 20 years in federal prison on the arson conspiracy count.  Gordon faces up to 5 years in federal prison.  Sentencing dates have not been determined.

     This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives.  It was prosecuted by Assistant U.S. Attorneys Nathaniel C. Kummerfeld and L. Frank Coan, Jr.

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BEAUMONT, Texas – A 69-year-old Liberty, Texas woman has pleaded guilty to a federal tax violation in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.

            Maria Lilia Riggs pleaded guilty to an Information charging her with conspiracy to defraud the United States by impeding and obstructing the Internal Revenue Service (IRS) of the Treasury Department in the collection of income taxes.  Riggs entered a plea of guilty on Nov. 28, 2017, before U.S. Magistrate Judge Zack Hawthorn as part of a plea agreement waiving her indictment by a federal grand jury.

            According to a factual basis signed by the defendant, joint individual federal tax returns Form 1040 of defendant Maria Lilia Riggs and her spouse for tax years 2007 through 2014 show federal income taxes owed of approximately $359,009.00 with little or no withholding or taxes paid or tendered. Further, for tax years of 1999 through 2006 the joint individual tax returns Form 1040 of the defendant and her spouse show federal income taxes owed of approximately $164,514.00 with little or no withholding or taxes paid or tendered. 

            According to information presented by prosecutors, beginning in 2006 when Riggs learned that federal tax levies were being served on her financial institution she began to open other accounts at that institution and another financial institution in the names of relatives and corporations in which the personal earned income of Riggs and her spouse were deposited in and withdrawn from in order to evade the lawful collection of taxes owed over the years.  In 2013 when IRS Revenue Officers attempted to collect past due taxes owed from the Riggs, Maria Lilia Riggs completed and signed Form 433-A, Collection Information Statement for Wage Earners and Self-Employed Individuals and failed to disclose her ownership of the various nominee accounts she was utilizing to evade payment of taxes owed.

Under federal statutes, Riggs faces up to five years in federal prison at sentencing as well as restitution to the IRS of approximately $521,166.  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 Internal Revenue Service – Criminal Investigation Division and prosecuted by Assistant U.S. Attorneys Robert L. Rawls.

BEAUMONT, Texas – A 35-year-old Beaumont, Texas man has pleaded guilty to federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.

            Michael Anthony Victoria pleaded guilty to being a felon in possession of a firearm today before U.S. Magistrate Judge Zack Hawthorn.

          According to information presented in court, on Dec. 10, 2016, Victoria was arrested and charged with being a felon in possession of a firearm and ammunition.  As a convicted felon, Victoria is prohibited by federal law from owning or possessing firearms or ammunition.  Victoria was indicted by a federal grand jury on July 6, 2017 and charged with federal firearms violations.

            Under federal statutes, Victoria 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 prosecuted by Assistant U.S. Attorney Randall L. Fluke.

TYLER, Texas – A 45-year-old Tyler man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.

Stacey Godsey pleaded guilty on July 5, 2017 to conspiracy to import anabolic steroids and was sentenced to 24 months in federal prison today by U.S. District Judge Thad Heartfield. 

According to information presented in court, from 2014 to 2016, Godsey and Joseph Shay Burton, 39, also of Tyler, purchased anabolic steroids through the internet from suppliers located in China.  The steroids were shipped to the United States where Godsey and Burton converted them from powder to liquid dosage units in the kitchen and garage of Godsey's residence.  Once converted into liquid dosage units, the steroids were sold and distributed to steroid users in Tyler, Texas and elsewhere.  In the spring of 2016, law enforcement officers searched residences belonging to Godsey and Burton.  More than 60,000 dosage units of anabolic steroids were found at Godsey's residence.  More than 6,000 dosage units were found at Burton's residence.

            Burton also pleaded guilty in July 2017 and is awaiting sentencing.

This casewas investigated by the Drug Enforcement Administration, the Tyler Police Department, and the Smith County Sheriff's Office and prosecuted by Assistant U.S. Attorney Nathaniel C. Kummerfeld.

BEAUMONT, Texas – A 27-year-old Houston man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.

Cody Edward Drawhorn pleaded guilty on Mar. 20, 2017, to conspiracy to possess with intent to distribute methamphetamine and was sentenced to 135 months in federal prison today by U.S. District Judge Marcia Crone.

According to information presented in court, on Dec. 28, 2015, Drawhorn was pulled over for a traffic violation in Beaumont, Texas with three passengers in his vehicle. Drawhorn provided officers consent to search the vehicle and during the search they discovered approximately 6.5 ounces of methamphetamine packaged in 20 individually packaged baggies. Drawhorn was indicted by a federal grand jury on Sep. 7, 2016 and charged with drug trafficking violations.

            This case was investigated by U.S. Drug Enforcement Administration, Federal Bureau of Investigation, and Bureau of Alcohol, Tobacco, Firearms, and Explosives and prosecuted by Assistant U.S. Attorney Michelle S. Englade.

BEAUMONT, Texas – A 67-year-old Houston man has been sentenced to federal prison  for violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.

Lawrence Allen DeShetler pleaded guilty on June 8, 2017, to mail fraud and was sentenced to 60 months in federal prison today by U.S. District Judge Marcia A. Crone.  DeShetler was also ordered to pay restitution in the amount of $926,809.18.

According to information presented in court, DeShetler has been a certified financial planner (CFP) and investment advisor since 1994, and has been president of DeShetler & Company, Inc. since 1988.  In his capacity as a CFP and investment advisor, DeShetler would advise clients on investment strategies and act as a broker for financial products, such as annuities and insurance policies.  However, beginning in 2014, DeShetler began soliciting funds from clients by convincing them they could see higher returns on their money if they allowed him to invest it.  Based on DeShetler’s advice, the clients then withdrew money from their existing investment accounts and gave him the proceeds.  DeShetler then deposited the funds in bank accounts in his name and under his exclusive control, and then used the money for his personal benefit.  In total, DeShetler fraudulently obtained $1,907,003.71 from five clients, including two from the Jefferson/Orange county area of the Eastern District of Texas.

“Consumers must have confidence that financial advisors are looking out for the interest of their clients,” said Acting U.S. Attorney Brit Featherston.  “When this breach of trust occurs, not only do the victims lose, but the public also suffers through concern and worry that their money is not being reasonably safeguarded by these professionals.  This community has fine trustworthy professionals to call upon for financial assistance.  But DeShetler is not one of them, and he will be justly punished for his greed.”

“The resolution of this case speaks volumes about the commitment of the U.S Attorney’s Office to the prosecution of criminals who attempt to quickly abscond with money investors have earned over a lifetime of hard work,” said Texas Securities Commissioner Travis J. Iles.

            This case was investigated by the Federal Bureau of Investigation; Orange County Sheriff’s Office, Texas Department of Public Safety, Texas State Securities Board, Jefferson County District Attorney’s Office, and Montgomery County District Attorney’s Office.  The case was prosecuted by Assistant U.S. Attorney Christopher T. Tortorice.

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TYLER, Texas – A mother and son have been sentenced to federal prison for their roles in a synthetic drug conspiracy in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.

Sharjeel Jeff Ali, 29, and his mother, Nadia Farishta, 54, both of Dallas, pleaded guilty in June 2017 to conspiracy to distribute and possession with intent to distribute Schedule I controlled substances, conspiracy to distribute and possession with intent to distribute controlled substance analogues, and engaging in monetary transactions.  Ali was sentenced to 30 months in federal prison today by U.S. District Judge Thad Heartfield.  Farishta was sentenced to 47 months in federal prison today.

Earlier this year, Farishta's ex-husband, Saleem Jiwani, of Tyler, was sentenced to 60 months in federal prison; her daughter, Nimrose Khan, of Carrollton, was sentenced to 24 months in federal prison; and her son-in-law, Adeel Khan, of Carrollton, was sentenced to 30 months in federal prison; for similar charges.

The defendants will forfeit over $250,000 in seized United States currency and bank accounts, approximately 55 pounds of synthetic drugs, and drug paraphernalia. The United States will also take money judgments in the amount of $500,000 against Jiwani and Farishta.

The family members were indicted by a federal grand jury on Aug. 3, 2016. According to the indictment, synthetic drugs were distributed by the co-conspirators from the Ashes Smoke Shop located in downtown Plano, Texas, and by Jiwani at the Minute Stop convenience store located in Tyler, Texas. Charges included conspiracy to distribute and possess with intent to distribute Schedule I controlled substances; conspiracy to distribute and possess with intent to distribute controlled substance analogues; conspiracy to commit offenses against the United States; conspiracy to sell and offer for sale drug paraphernalia; engaging in monetary transactions in property derived from specified unlawful activity and aiding and abetting; and maintaining a place for the distribution of a controlled substance or controlled substance analogue and aiding and abetting. 

“The scourge of illegal drug use in our community is as great now as ever before” said Acting U.S. Attorney Featherston.  “In this case, the selling of chemically laced leaves and other substances to be sold as fake marijuana to young people is reckless. No one has any idea what exactly was sprayed onto the “K-2” substance, yet these synthetic drugs were sold for lots of money.  It’s crazy to me that people will ingest these so called “synthetic” drugs with nothing more than a guess as to what high or harm it will do to them. The investigators and prosecutors did a great job in putting this case together.”

On Aug. 4, 2016, a combined task force of federal, state and local law enforcement executed federal arrest and search warrants in Plano, Carrollton, Dallas, and Tyler, Texas as a result of a joint investigation by the U.S. Drug Enforcement Administration; Plano Police Department; Internal Revenue Service-Criminal Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives Asset Forfeiture and Seized Property Division; and Smith County Sheriff’s Office. This case was prosecuted by Assistant U.S. Attorney Mary Ann Cozby.

WASHINGTON – Attorney General Jeff Sessions recognized 202 department employees for their distinguished public service this week at the 65nd Annual Attorney General’s Awards Ceremony.  Nineteen other individuals outside of the department were also honored for their work.  This annual ceremony recognizes individuals for their outstanding service and dedication to carrying out the missions of the Department of Justice.  The department will also present one posthumous award to Deputy Commander Patrick T. Carothers for exceptional heroism in the line of duty during a fugitive apprehension in Allenhurst, Georgia on Nov. 18, 2016, in which  Deputy Commander Carothers was mortally wounded.

 “Every single day, the 115,000 men and women of the Department of Justice work to protect our national security against terrorist threats, defend the civil rights of all Americans, reduce violent crime in our communities, stop deadly drug dealers and their organizations, and strengthen the rule of law,” said Attorney General Sessions.  “This work benefits every American, and each Department of Justice employee plays a role that helps us accomplish our objectives. Today, we take a moment to recognize those who have distinguished themselves by exemplary service to the Department. Each one of these men and women—through their dedication and commitment—has made a difference. Meeting with them and their families today, I am more confident than ever that the Department—and the safety of the American people—are in good hands.”

This year’s program honors individuals across the department and our federal, state, local, and tribal partners for their self-less efforts, protecting our national security and our civil rights, addressing rising violent crime in our communities, going after gangs and those trafficking in dangerous narcotics and human beings.  The awards also honor the work of civil and environmental litigation, which enforces the rule of law and upholds our Constitution.  They also recognize employees whose ideas and efforts save taxpayer dollars and help our government operate more effectively and efficiently, among other contributions to public safety and good governance.

From the Eastern District of Texas, Assistant U.S. Attorneys Joseph R. Batte and Christopher T. Tortorice were honored with the John Marshall Litigation Award. Bate was a prosecutor for the Jefferson County District Attorney’s Office before joining the U.S. Attorney’s Office in 1995.  Tortorice is also a former state prosecutor having worked for the Navarro County District Attorney’s Office and the Texas Attorney General’s Office.  He joined the U.S. Attorney’s Office in 2009.

“The U.S. Attorney’s Office is proud to acknowledge this award for outstanding work in the field of white collar prosecutions,” said Acting U.S. Attorney Brit Featherston.  “Assistant U.S. Attorneys Batte and Tortorice continue to excel and lead the complex crimes area of the Beaumont Division of the U.S. Attorney’s Office.  Their work reflects outstanding investigative leadership in complex white collar cases, and East Texas is better off by having them as prosecutors in the Eastern District of Texas.”

TYLER, Texas – A 30-year-old Longview, Texas man has been convicted of federal violations for his role in a student financial aid fraud scheme in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.

Robert Brisco was indicted by a federal grand jury on July 19, 2017, and charged with conspiracy to commit wire fraud and mail fraud, four counts of mail fraud, and 16 counts of student financial aid fraud and aiding and abetting.  Brisco was found guilty today by a jury on all counts.  At sentencing, Brisco faces up to 20 years in federal prison for the conspiracy and for each mail fraud charge and 5 years in federal prison for each student financial aid fraud charge.

According to information presented in court, from June 2013 to September 2015, Brisco and others conspired to use wire communications and the mail to fraudulently obtain student financial aid funds through the Pell Grant Program and William D. Ford Federal Direct Loan Program.  

Under federal statutes, Brisco 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.

Brisco's mother, Gracie Brisco, 54, and his sister, Shanitra Frost Brisco, 34, both of Longview, pleaded guilty in July 2017, to student financial aid fraud and each face up to five years in federal prison at sentencing.  Six other individuals have been charged in connection with the student aid fraud scheme.  All have pleaded guilty and await sentencing. 

“Student financial aid fraud deprives deserving students of funds essential to their education,” said Acting U.S. Attorney Brit Featherston.  “We are committed to prosecuting these crimes and appreciate our federal agents who work so tirelessly to ensure our economy is not crippled by these fraudulent activities.”

“OIG Special Agents aggressively pursue those who seek to enrich themselves at the expense of taxpayers,” said Neil Sanchez, Special Agent in Charge of the U.S. Department of Education Office of Inspector General’s Southern Region. "I'm proud of the work of OIG Special Agents and our law enforcement partners for holding Brisco accountable and for protecting the integrity of Federal education dollars."

“This case represents the successful collaboration between the Secret Service, the Office of Inspector General for the Department of Education, the U.S. Postal Inspection Service, and the U.S. Attorney’s Office for the Eastern District of Texas,” said Special Agent in Charge William Noonan, U.S. Secret Service. “The Secret Service is committed to working with its federal partners in investigating these complex financial crimes.”

“The successful conviction in this case should serve as a lesson to all who would want to defraud the government of vital education funds,” said Thomas L. Noyes, Inspector in Charge, Fort Worth Division, U.S. Postal Inspection Service.  “I appreciate the U.S. Attorneys, Secret Service Agents, Agents from the Department of Education Office of Inspector General, and the Postal Inspectors whose hard work and diligence resulted in the guilty verdict.”

This case is being investigated by the U.S. Department of Education - Office of Inspector General, U.S. Secret Service, U.S. Postal Inspection Service, the Longview Police Department, and the Kilgore College Police Department.  Assistant U.S. Attorneys Nathaniel C. Kummerfeld and L. Frank Coan are prosecuting this case.