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. 

BEAUMONT, Texas – Acting United States Attorney Brit Featherston announced today that a Disaster Fraud Task Force has been created in the Eastern District of Texas comprised of local, state, and federal agencies to combat hurricane Harvey related disaster fraud activity.

The Justice Department established the National Center for Disaster Fraud (NCDF) following Hurricane Katrina and it is specifically designed to be ready for situations like Harvey, Irma, Jose and Maria.  The Center acts as a clearinghouse of information related to disaster relief fraud and has already received over 400 complaints of suspected fraudulent activity since Hurricanes Harvey and Irma struck the Gulf Coast in August and September. 

Although the Eastern District of Texas has witnessed acts of heroism, compassion and generosity from its citizens and from across the nation, there are individuals and organizations that will use these tragic events to take advantage of those in need.  Examples of illegal activity reported to the NCDF and law enforcement include:

• Impersonation of federal law enforcement officials;
• Identity theft;
• Fraudulent submission of claims to insurance companies and the federal government;
• Fraudulent activity related to solicitations for donations and charitable giving;
• Fraudulent activity related to individuals and organizations promising high investment returns from profits from recovery and cleanup efforts;
• Price gouging;
• Theft, looting, and other violent crime.
   

"Relief funds provide critical support and assistance for those whose lives were profoundly affected by Hurricane Harvey, and our citizens have the right to expect that those funds will be used to the greatest advantage,” said Acting U.S. Attorney Brit Featherston.  “Anyone who illegally diverts those funds, or fraudulently profits from this disaster, should face a storm of their own creation and this task force exists to ensure that happens." 

Members of the public who suspect fraud involving disaster relief efforts, or believe they have been the victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, should contact the National Disaster Fraud Hotline toll free at (866) 720-5721. The telephone line is staffed by a live operator 24 hours a day, 7 days a week. You can also fax information to the Center at (225) 334-4707, or email it to disaster@leo.gov (link sends e-mail). Learn more about the Department of Justice’s National Center for Disaster Fraud at http://www.justice.gov/disaster-fraud.

The Disaster Fraud Task Force for the Eastern District of Texas is comprised of the following agencies:  the U.S. Attorney’s Office for the Eastern District of Texas; Homeland Security Investigations; Environmental Protection Agency-OIG; Federal Bureau of Investigation; U.S. Health & Human Services;-OIG; U.S. Internal Revenue Service-CID; U.S. Postal Inspection Service; U.S. Department of Housing & Urban Development-OIG; U.S. Small Business Administration-OIG; Jefferson County District Attorney’s Office; Orange County District Attorney’s Office; Beaumont Police Department; Jefferson County Sheriff’s Office; Orange County Sheriff’s Office; Orange Police Department; Hardin County Sheriff’s Office; Port Arthur Police Department; and the Social Security Administration-OIG. 

BEAUMONT, Texas – A 21-year-old Houston woman has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.

Emily Eliza Villarreal pleaded guilty on June 27, 2017 to conspiracy to possess with intent to distribute crack cocaine and was sentenced to 27 months in federal prison today by U.S. District Judge Thad Heartfield.

           According to information presented in court, on Oct. 27, 2016, law enforcement officers pulled over a vehicle on Interstate 10 eastbound in Beaumont for a traffic violation.  Villarreal was a passenger in the vehicle driven by Hugo Alejandro Garcia.  The driver was extremely nervous and during questioning he and Villarreal provided officers with inconsistencies as to their travel plans.  Garcia gave consent to search the vehicle which resulted in officers discovering four bundles wrapped in black electrical tape and concealed under the carpet in the trunk.  Garcia admitted to transporting narcotics and stated he was on his way to Louisiana with the drugs.  The bundles contained four kilograms of crack cocaine.  Garcia and Villarreal were indicted by a federal grand jury on Nov. 2, 2016.

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

SHERMAN, Texas – Two men have been indicted in a wire fraud conspiracy in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.

Arlando Jacobs, 52, of The Woodlands, Texas, and Clarence Roland, 56, of Tacoma, WA, were named in a seven-count indictment charging them with wire fraud conspiracy, bank fraud, wire fraud, and aggravated identity theft.  The indictment was returned by a federal grand jury in Sherman, Texas last week.   

According to the indictment, between October 2011 and April 2017, Jacobs and Roland are alleged to have conspired with each other and others to create and submit fraudulent mortgage lien documents to title companies and financial institutions in order to receive transfers of funds they were not entitled to receive. According to an affidavit for a complaint, the fraud scheme resulted in approximately $3.7 million in fraudulent proceeds.

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

This case is being investigated by the Federal Housing Finance Agency-Office of  Inspector General, Federal Bureau of Investigation, and Housing & Urban Development-Office of Inspector General.  This case is being prosecuted by Assistant U.S. Attorneys J. Andrew Williams and Christopher Eason.

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.

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

              Jeffrey Clive Arnold pleaded guilty to conspiracy to possess with intent to distribute methamphetamine today before U.S. Magistrate Judge Keith Giblin.

           According to information presented in court, in August 2015, law enforcement officers investigating suspected drug trafficking of methamphetamine through Southeast Texas.  Surveillance revealed Arnold was supplying large quantities of methamphetamine to others for distribution.  Arnold was stopped leaving a Houston residence and found to be in possession of drugs and cash.  A backpack with over $39,000 in cash was located at the Houston residence and it was determined to belong to Arnold.  Arnold was indicted by a federal grand jury on Feb. 1, 2017. 

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

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

                BEAUMONT, Texas – A 39-year-old Dallas tax preparer has pleaded guilty to federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today. The defendant Shannon Tecoko Mays pleaded guilty to federal tax violations and failure to appear for his trial on that charge in early 2015.  Mays entered his guilty plea to two felony indictments today before U.S. Magistrate Judge Zack Hawthorn.

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

                Mays was indicted in February 2014 and alleged to have targeted individuals who were generally exempt from having to file income tax returns because they would be less likely to discover a fraudulent tax return had been filed on their behalf.  To further facilitate the scheme, Mays employed “recruiters,” paying them from $50-100 for every client they successfully brought into Syam Tax.  In order to avoid detection, Mays altered the taxpayer’s address and phone numbers on the returns so that any phone calls or correspondence from the IRS would not reach the taxpayer.  The scheme also used electronic deposits to ensure paper checks would not be mailed to the taxpayer.  For the tax year 2011, Mays filed 4,226 tax returns claiming approximately $6,000,000 in refunds. A successful injunction suit brought by the Texas Attorney General’s Office – Consumer Protection Division in 2014 recovered approximately $1,282,000 from Syam Tax Service bank accounts which was returned to the U.S. Treasury. One recruiter form the Port Arthur area, Diana Broussard McCoy, pleaded guilty to the conspiracy charge in January 2015, and was sentenced to five years probation by Chief Judge Ron Clark. Another recruiter, Myra Jones, pleaded guilty in March, 2014, to Impersonating an Internal Revenue Service employee, and was also sentenced to probation by Chief Judge Ron Clark.

                When trial was set for January 2015, Mays failed to appear for the final pretrial conference on January 8 and then failed to appear for trial on January 12.  Mays was indicted by a federal grand jury for Obstruction of Justice the following month and he remained a fugitive until his capture by U.S. Marshals in Fort Worth in August 2017.  At sentencing, Mays faces up to 20 years in federal prison on the wire fraud conspiracy and ten years on the Obstruction charge, of which the sentence for obstruction must run consecutive. A sentencing date before Chief Judge Ron Clark will be set after completion of a presentence report.

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

BEAUMONT, Texas — A 34-year-old Lumberton, Texas man has been sentenced to federal prison for child exploitation violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.

George Patrick Ashy pleaded guilty on June 27, 2017 to two counts of production of child pornography and was sentenced to a total of 420 months in federal prison today by U.S. District Judge Marcia Crone. 

According to information presented in court, on Mar.28, 2016, Ashy produced child pornography, including video and photographic images of himself engaged in sexually explicit conduct with a prepubescent child.  Ashy was indicted by a federal grand jury on Mar. 1, 2017 and charged with child pornography violations. 

This conviction will run concurrent to the state prison sentence of 25 years Ashy is already serving out of Hardin County, Texas for continued sexual abuse of a child. 

 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 and the Beaumont Police Department and prosecuted by Assistant U.S. Attorneys Joseph R. Batte and Lesley Woods.

BEAUMONT, Texas – A 30-year-old Beaumont, Texas 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.

Kristopher George Ardoin was found guilty by a jury on Jan. 25, 2017, of conspiracy to possess with intent to distribute 280 grams or more of crack cocaine and firearms conspiracy.  Ardoin was sentenced to serve life in federal prison today by U.S. District Judge Marcia A. Crone.

According to information presented in court, for over a decade the Ardoin family and others openly distributed crack cocaine from their home at 1107 Avenue A in Beaumont. In the last ten years, the Beaumont Police Department has received over 2,000 calls for service to the neighborhood block controlled by the Ardoin organization, including approximately 139 calls to the crack house itself.  An estimated 280 grams of crack cocaine is believed to have been distributed from the location during this time.  A federal grand jury returned a four-count indictment on May 4, 2016 charging 13 individuals with federal drug and firearms violations.  The other 12 defendants have already been sentenced for their crimes. 

"This is a great example of federal, state and local law enforcement coming together to make the community a safer place to live,” said Acting U.S Attorney Featherston.  “I appreciate the hard work of the investigators and prosecutors who worked day and night to put this case together.  As we see from this investigation and prosecution, together with community help, we can put a stop to these human crime waves that stalk our neighborhoods.”

This case was investigated by the U.S. Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Beaumont Police Department. This case was prosecuted by Assistant U.S. Attorneys Lesley A. Woods and Robert L. Rawls. 

TYLER, Texas – A 28-year-old Ben Wheeler, Texas man has been sentenced to federal prison for drug trafficking and firearms violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.

Corey Lance Parish pleaded guilty on May 16, 2017, to possession with intent to distribute methamphetamine and possession of a firearm during a drug trafficking crime.  Parish was sentenced to 120 months in federal prison today by U.S. District Judge Thad Heartfield.

According to information presented in court, on Dec. 13, 2016, Parish was pulled over for a traffic stop in Canton, Texas.  During a search of his vehicle, law enforcement officers discovered a pistol, over 77 grams of marijuana and 329 grams of methamphetamine. 

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, the U.S. Drug Enforcement Administration and the Van Zandt County Sheriff’s Office.  This case was prosecuted by Assistant U.S. Attorney Mary Ann Cozby.

TYLER, Texas – A 28-year-old Mount Pleasant, Texas 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.

Johnny Carol Denton, III, pleaded guilty on May 17, 2017, to conspiracy to distribute and possess with intent to distribute heroin and was sentenced to 100 months in federal prison on Sep. 26, 2017, by U.S. District Judge Ron Clark.

According to information presented in court, on Dec. 14, 2016, a federal grand jury returned an indictment charging Denton with multiple drug trafficking and firearms violations. 

            This case was investigated by the U.S. Drug Enforcement Administration, the Gregg County CODE Unit, the Smith County Sheriff’s Office, and the Kilgore Police Department.  This case was prosecuted by Assistant U.S. Attorney Mary Ann Cozby.

TYLER, Texas – A 28-year-old Mount Pleasant, Texas 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.

            Johnny Carol Denton, III, pleaded guilty on May 17, 2017, to conspiracy to distribute and possess with intent to distribute heroin and was sentenced to 100 months in federal prison on Sep. 26, 2017, by U.S. District Judge Ron Clark.

            According to information presented in court, on Dec. 14, 2016, a federal grand jury returned an indictment charging Denton with multiple drug trafficking and firearms violations. 

            This case was investigated by the U.S. Drug Enforcement Administration, the Gregg County CODE Unit, the Smith County Sheriff’s Office, and the Kilgore Police Department.  This case was prosecuted by Assistant U.S. Attorney Mary Ann Cozby.

TYLER, Texas – Two East Texas men were sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.

Quentin Leonta Brown, 40, of Gilmer, Texas, pleaded guilty on May 30, 2017, to conspiracy to distribute and possess with intent to distribute cocaine and crack cocaine and was sentenced to 144 months in federal prison on Sep. 26, 2017, by U.S. District Judge Thad Heartfield.

Saihaine Nijel Freeman, 23, of Longview, Texas, pleaded guilty on May 30, 2017, to possession with intent to distribute crack cocaine and was sentenced to 57 months in federal prison on Sep. 26, 2017, by Judge Heartfield.

According to information presented in court, on Jan. 18, 2017, a federal grand jury returned an indictment charging Brown and Freeman with multiple drug trafficking and firearms violations. 

                This case was investigated by the Federal Bureau of Investigation, Texas Department of Public Safety, the Gregg County CODE Unit and the Longview Police Department.  This case was prosecuted by Assistant U.S. Attorney Mary Ann Cozby

TYLER, Texas – Two East Texas men were sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.

                Quentin Leonta Brown, 40, of Gilmer, Texas, pleaded guilty on May 30, 2017, to conspiracy to distribute and possess with intent to distribute cocaine and crack cocaine and was sentenced to 144 months in federal prison on Sep. 26, 2017, by U.S. District Judge Thad Heartfield.

                Saihaine Nijel Freeman, 23, of Longview, Texas, pleaded guilty on May 30, 2017, to possession with intent to distribute crack cocaine and was sentenced to 57 months in federal prison on Sep. 26, 2017, by Judge Heartfield.

                According to information presented in court, on Jan. 18, 2017, a federal grand jury returned an indictment charging Brown and Freeman with multiple drug trafficking and firearms violations. 

                This case was investigated by the Federal Bureau of Investigation, Texas Department of Public Safety, the Gregg County CODE Unit and the Longview Police Department.  This case was prosecuted by Assistant U.S. Attorney Mary Ann Cozby

PLANO, Texas - A North Texas man and woman have been sentenced for federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.

Amanda Lynn Mollison, 29, of Allen, Texas, pleaded guilty on May 3, 2017 to providing contraband in prison. Justin Chadwick Brown, 39, of Grand Prairie, Texas, pleaded guilty on May 4, 2017, to possession of contraband in prison. Mollison and Brown were each sentenced to 51 months in federal prison last week by U.S. District Judge Marcia A. Crone.

According to information presented in court, on Oct. 11, 2016, Mollison sent Brown a greeting card soaked in methamphetamine through the mail to the Collin County Jail where Brown was incarcerated. Officials with the Collin County Sheriff’s Office tested the greeting card which tested positive for the presence of methamphetamine. Investigators then searched for phone calls between inmate Brown and Mollison that had been recorded. Investigators learned that between Sep. 30, 2016 and Oct. 5, 2016, Brown requested that Mollison send him the greeting card containing methamphetamine. Mollison and Brown were indicted by a federal grand jury on Feb. 9, 2017.

This case was investigated by the U.S. Postal Inspection Service and the Collin County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Tracey M. Batson.

HOUSTON, Texas - A Conroe, Texas couple has been sentenced for bankruptcy fraud conspiracy in the Southern District of Texas, announced Eastern District of Texas Acting U.S. Attorney Brit Featherston.

Richard Kent Harris, 74, and Darlene Ann Riley, 59, pleaded guilty on Mar. 8, 2017, to conspiracy to commit bankruptcy fraud. Harris was sentenced to 10 months in federal prison today by U.S. District Judge Kenneth M. Hoyt. Riley was sentenced to 12 months of home confinement.

According to information presented in court, on June 22, 2012, Richard Harris entered into a contract with a home builder to construct a custom home for Harris and his wife, Darlene Riley. In August 2012, Harris and Riley became embroiled in a dispute with the home builder over the design of their house and a lawsuit ensued. The lawsuit went to arbitration, where Harris and Riley were ordered to pay the home builder $54,686.55 in damages. Approximately two weeks later Harris and Riley consulted with a bankruptcy attorney.

Harris and Riley filed for divorce on Apr. 1, 2013, but continued to reside at the same address. In the months leading up to the divorce filing, Harris and Riley made substantial charges on their credit card, which was used for their mutual benefit. On Feb. 26, 2013, Riley withdrew $67,000 from the joint checking account she shared with Harris and deposited it into her own sole checking account.

Following Riley’s filing for divorce, a property settlement was entered into between Riley and Harris. All material assets of the marriage were awarded to Riley, which included a 2004 Jaguar XK8, a 2007 beachcomber boat, a utility trailer, all of their furnishings, 43 paintings, jewelry, 2012 federal income tax refund, and half of his net federal pension. On June 12, 2013, Harris also transferred his interest in their homestead by special warranty deed to Riley. The divorce was finalized on June 3, 2013.

On Oct. 15, 2013, Harris filed for Chapter 7 bankruptcy in the Southern District of Texas. Harris claimed debts totaling $173,305.19 to various banks, credit cards, the home builder and other unsecured creditors. Harris failed to disclose on his bankruptcy petition the transfer of his homestead interest to Riley, the vehicle transfers, the sale of a truck for $5,500, and the $67,000 withdrawal from his joint account with Riley. A review of Riley’s bank records found that the $67,000 she transfered into her solely owned bank account was spent on mortgage payments and other joint household expenses. Riley’s transfer of the $67,000 from the joint account with Harris was done to hide those assets from being used to repay Harris’s creditors in the Chapter 7 bankruptcy. Further, Harris filed the bankruptcy petition with knowledge that the transfer was not disclosed to his creditors in the bankruptcy petition, as is required by law.

The case was investigated by the Federal Bureau of Investigation and prosecuted by Eastern District of Texas Assistant U.S. Attorneys Christopher T. Tortorice and Paul Hable.

SHERMAN, Texas – A 34-year-old Dallas man has been sentenced to federal prison in connection with a Denton County highway expansion project in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.

Wade Wylie Blackburn, pleaded guilty on Apr. 19, 2017, to conspiracy to commit mail fraud and was sentenced to 12 months and one day in federal prison on Sep. 14, 2017, by U.S. District Judge Marcia A. Crone. Blackburn was also ordered to pay restitution in the amount of $1 million to the Texas Department of Transportation.

According to information presented in court, from 2008 to 2011, Blackburn conspired with Kevin James Bollman to defraud the Texas Department of Transportation (TXDOT.) Blackburn and Bollman raised investment money and purchased Right-of-Way (ROW) along Interstate Highway 35 East in Denton County with the intent of quickly re-selling the ROW land tracts to TXDOT.

TXDOT acquired ROW through one of three methods: (1) Condemnation (normal acquisition); (2) Early Acquisition (EAQ); and (3) Advanced Acquisition (AAQ) through option contracts. The first two methods required environmental clearances before TXDOT was permitted to acquire the ROW and pay the landowner. The timing on these acquisitions, including the timing of the environmental clearance issued by the federal government, is unpredictable and often takes years to accomplish. The third method – the AAQ method through option contracts – permitted TXDOT to execute an option contract before environmental clearances were obtained, then pay the landowners a significant up-front option fee designed to keep the landowner from transferring or developing the property on the ROW that would later result in TXDOT likely having to pay more for the ROW. The landowner agreed not to develop the property in exchange for the up-front option fee, then closed on the sale and received the remainder of the purchase money after the environmental clearances were obtained.

As part of the scheme, Blackburn and Bollman intentionally caused false material information to be submitted to the TXDOT appraiser regarding, among other things, their development plans for the various properties. Blackburn and Bollman made these representations to the TXDOT appraiser even though they knew they had no intent to develop any of the properties. Blackburn also wrote a letter with material false statements to individuals at TXDOT. It claimed they were being forced to forego imminent development plans for the tracts, had been unable to successfully secure building permits, and were experiencing financial hardships as a result. Blackburn and Bollman also made false material oral misrepresentations to officials of TXDOT when they told them that they were experiencing financial hardships as a result of not being able to proceed with immediate development of the tracts, and that TXDOT should use the AAQ method to immediately purchase the tracts. Blackburn and Bollman made the material misrepresentations to TXDOT so they could ultimately benefit from the up-front option fee rather than wait for TXDOT acquisition by their usual course of condemnation. TXDOT used option contracts to purchase the tracts for higher prices than what Blackburn and Bollman paid for the tracts. Blackburn was indicted by a federal grand jury in April 2016.

According the general counsel for TXDOT, this is the first time a developer has been ordered to pay restitution for providing false information. Bollman is scheduled to be sentenced on Oct. 30, 2017.

This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorneys Christopher A. Eason and J. Andrew Williams.

PLANO, Texas — A 41-year-old Plano, Texas man has been sentenced to federal prison for child exploitation violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.

Ryan Curry pleaded guilty on Apr. 27, 2017 to possession of child pornography and was sentenced to 108 months in federal prison on Sep. 14, 2017, by U.S. District Judge Marcia Crone.

According to information presented in court, in November 2016, law enforcement officers executed a federal search warrant at the residence where Curry was residing in Plano. A computer user at the residence had been identified by law enforcement during an undercover operation into individuals trading child pornography on the Internet. Curry admitted to possessing more than 3,000 images and videos of child pornography on a cell phone. Those images included depictions of prepubescent minors and sadistic and masochistic conduct.

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 Federal Bureau of Investigation and the Plano Police Department and prosecuted by Assistant U.S. Attorney Marisa Miller.

TYLER, Texas – A long-time Smith County Precinct One Constable has been sentenced to federal prison for criminal tax violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.

Henry Phillip Jackson, 65, of Tyler, Texas pleaded guilty on May 16, 2017, to four counts of willful failure to file federal income tax returns and was sentenced to six months in federal prison today by U.S. Magistrate Judge K. Nicole Mitchell. Jackson was also ordered to pay restitution in the amount of $157,489.

According to information presented in court, Jackson, who has served as an elected constable since 1999, received income from 2010-2013 that required him to file federal income tax returns for those years. However, Jackson failed to file those returns and now owes more than $160,000 in taxes.

This case was investigated by the Internal Revenue Service – Criminal Investigations and the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorney Frank Coan.

TYLER, Texas – A 29-year-old Kilgore, Texas 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.

Andrew Jonathan Hearnsberger pleaded guilty on May 16, 2017, to conspiracy to distribute and possession with intent to distribute heroin and was sentenced to 60 months in federal prison today by U.S. District Judge Ron Clark.

According to information presented in court, on Jan. 10, 2017, law enforcement agents executed a federal arrest warrant for Hearnsberger in Kilgore as a result of an investigation into illegal drug trafficking in the area. The arrest resulted in the seizure of $14,624 in cash, heroin, marijuana, and multiple firearms. Hearnsberger was indicted by a federal grand jury on Dec. 14, 2016, and charged with federal drug trafficking violations.

This case was investigated by the U.S. Drug Enforcement Administration, Gregg County CODE Unit, Smith County Sheriff’s Office, and the Kilgore Police Department and prosecuted by Assistant U.S. Attorney Mary Ann Cozby.

BEAUMONT, Texas – Three men have pleaded guilty to illegally trafficking alligator snapping turtles in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston along with the Department of Justice’s Environment and Natural Resources Division and the U.S. Fish and Wildlife Service today.

Travis Joseph Leger, 40, and Rickey Paul Simon, 57, both of Sulphur, Louisiana, and Jason Gene Leckelt, 36, of Wilburton, Oklahoma, have all pleaded guilty to conspiracy to violate the Lacey Act by illegally trafficking alligator snapping turtles. Simon and Leckelt appeared before U.S. Magistrate Judge Keith Giblin on Aug. 17, 2017 while Leger entered his guilty plea before Judge Giblin on Aug. 21, 2017.

Alligator snapping turtles are 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 federal crime to engage in the interstate trafficking of wildlife taken in violation of state wildlife protection laws.

“Those who choose to exploit our precious wildlife resources threaten the existence of these rare reptiles,” said Acting U.S. Attorney Brit Featherston. “Protection of the turtles and the prevention of diseases that may spread by these actions make these prosecutions vital to the health of our natural wildlife.”

According to information presented in court, Leger, Leckelt, and Simon conspired to illegally take more than 60 large alligator snapping turtles during their multiple fishing trips to Texas in the spring and summer of 2016. The defendants transported the turtles back to a property in Sulphur, Louisiana, where they intended to sell them. In July 2016, Federal agents seized about 30 large alligator snapping turtles from ponds located at a defendant’s property in Sulphur, Louisiana, pursuant to a federal search warrant.

As part of his guilty plea, 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 and are currently being cared for at a private facility. 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. Leger also agreed to forfeit all of the turtles seized from his property in Sulphur, Louisiana, and will permit the U.S. Fish and Wildlife Service to return to the property, drain the ponds, and seize all remaining alligator snapping turtles. Similarly, Leckelt, who is Leger’s half-brother, admitted that the market value of the turtles that he illegally personally caught in Texas and sold in Louisiana during the course of the conspiracy was between $15,000 and $40,000.

Finally, Simon admitted that his role in the conspiracy included selling a 120-pound alligator snapping turtle, illegally caught in Texas, to an undercover U.S. Fish and Wildlife Agent in May of 2016. In addition, Simon admitted that he obstructed justice by deleting text messages from his cell phone prior to being interviewed by a Special Agent from the U.S. Fish and Wildlife Service during the execution of the search warrant at the Sulphur property in July 2016. Simon deleted the text messages from his cell phone after Leger called and warned him that game wardens were coming to the Sulphur property to take the turtles out of the ponds. Simon also admitted that he subsequently made false statements to the Special Agent during the execution of the search warrant at the Sulphur property by denying that he had ever fished for alligator snapping turtles in Texas.

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

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

WASHINGTON — Nigel Garrett, 21, and Cameron Ajiduah, 18, pleaded guilty today to assaulting men because of the victim’s sexual orientation, the Justice Department’s Civil Rights Division, the U.S. Attorney’s Office of the Eastern District of Texas, and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives’ Dallas Division announced.

According to the plea agreement signed by Garrett on January 19, 2017, defendants Garrett, Anthony Shelton and Chancler Encalade used Grindr, a social media dating platform for gay men, to arrange to meet the victim at the victim’s home. Upon entering the victim’s home, the defendants restrained the victim with tape, physically assaulted the victim, and made derogatory statements to the victim for being gay. The defendants brandished a firearm during the home invasion, and stole the victim’s property, including his motor vehicle.

Included in a separate plea agreement signed by Ajiduah on February 7, 2017, defendants Ajiduah, Garrett, and Shelton used the same scheme on a different victim, including restraining the victim and covering his eyes with tape, verbally berating him for his sexual orientaion, and physically assaulting him.

A federal grand jury previously returned an eighteen-count indictment against Ajiduah, Shelton, Garrett, and Chancler Encalade including charges of hate crimes, kidnappings, carjackings, and the use of firearms to commit violent crimes. The indictment also charged the defendants with conspiring to cause bodily injury because of the victim’s sexual orientation during four home invasions in Plano, Frisco, and Aubrey, Texas, between January 17 and February 7, 2017.

“The Justice Department will not tolerate hate crimes against any individual based on sexual orientation,” said Acting Assistant Attorney General John Gore. “Hate crimes are violent crimes, but also attack the fundamental principles of the United States. The Justice Department will continue to aggressively investigate and prosecute hate crimes.”

"Garrett and Ajiduah invaded homes, robbed and assaulted their victims, and particularly horrendous, targeted their victims based on the victim’s sexual orientation,” said Acting U.S. Attorney Brit Featherston. “In response to such a hate crime, let it be known that law enforcement will leave no stone unturned to catch and prosecute the likes of these criminals to the fullest extent of the law."

Garrett and Ajiduah face a maximum statutory penalty of life in prison and a $250,000 fine for their guilty plea for the hate crime charge.

The investigation is being conducted by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, the Plano Police Department, and the Frisco Police Department. The case is being 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 — A 29-year-old Denton, Texas man has been sentenced to 50 years in federal prison for child exploitation violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.

Joel Linden pleaded guilty on Apr. 20, 2017 production and distribution of child pornography and was sentenced to 50 years in federal prison on Aug. 18, 2017, by U.S. District Judge Marcia Crone.

According to information presented in court, on Nov. 6, 2016, law enforcement officers executed a search warrant at Linden’s residence after receiving information that someone from the residence was sending child pornography using an internet application. During the execution of the search warrant, agents seized a number of items of digital media, many of which were found to contain child pornography. Some of the images and videos of child pornography were produced by Linden and depicted the sexual abuse of a child under the age of 12 years old. The investigation also revealed Linden had distributed the images and videos to individuals with whom he was communicating online.

“This is another horrendous case of child exploitation,” said Acting U.S. Attorney Brit Featherston. “We will leave no stone unturned to find those who commit these terrible crimes…as a warning to others, we will find and punish you. My heart breaks for the victims and my appreciation goes out to those men and women who relentlessly investigate and prosecute these cases.”

Linden was sentenced to 360 months in federal prison for the production of child pornography and 240 months in federal prison for distributing child pornography. The sentences were ordered to be served consecutively for a total of 600 months in federal prison.

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 Homeland Security Investigations and the Flower Mound Police Department and prosecuted by Assistant U.S. Attorney Marisa Miller.

BEAUMONT, Texas – A 36-year-old Vidor, Texas man has pleaded guilty to federal drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.

Jonathan Derick Hickey pleaded guilty to possession with intent to distribute methamphetamine today before U.S. Magistrate Judge Keith Giblin.

According to information presented in court, on Jan. 17, 2017, law enforcement officers observed Hickey meet with the driver of another vehicle in the parking lot of the Wal-Mart in West Orange, Texas and then move to the Wendy’s parking lot. Deputies observed what they believed to be a drug transaction between the two drivers. The driver of the other vehicle was pulled over and a drug dog was called to the scene. The dog gave a positive alert signifying there were illegal drugs in the vehicle. A search revealed approximately one ounce of methamphetamine in the console. The driver advised that he had just received the methamphetamine from Hickey and that Hickey had another eight ounces of marijuana in his vehicle. Hickey was then stopped and a search of the vehicle revealed cash, a meth pipe, approximately 12 ounces of methamphetamine, marijuana and other pills. A search a Hickey’s residence in Vidor also revealed a firearm and additional drug paraphernalia. Hickey was indicted by a federal grand jury on Apr. 5, 2017.

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

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Orange County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Michelle S. Englade.

BEAUMONT, Texas – A 36-year-old Beaumont man has pleaded guilty to federal drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.

Kevin Lee Husband pleaded guilty to possession with intent to distribute methamphetamine today before U.S. Magistrate Judge Keith Giblin.

According to information presented in court, on Mar. 7, 2017, law enforcement officers pulled over Husband in Beaumont for a traffic violation. During the traffic stop, Husband provided consent to search the vehicle which resulted in officers discovering a fully loaded firearm, methamphetamine, marijuana, and over $5000 in cash. Husband admitted the firearm was his and told officers there was an additional eight ounces of marijuana and another firearm at his residence. Deputies obtained a search warrant for the residence where they found the drugs and gun. Husband was indicted by a federal grand jury on July 6, 2017 and charged with federal gun and drug violations.

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

This case was investigated by the Bureau of Alcohol, Tobacco, and Firearms and the Jefferson County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Michelle S. Englade.

BEAUMONT, Texas – Acting U.S. Attorney Brit Featherston announced today that 32 individuals have been charged in federal firearms related cases this month in the Eastern District of Texas.

A federal grand jury in Beaumont returned 26 federal indictments on Aug. 9, 2017. Law enforcement agencies began arresting defendants today. The following 16 defendants are in custody and will make initial appearances before federal magistrate judges in Beaumont:

• • Robert Lee Johnson, 43, of Port Arthur, Texas

  • Desmond Harper, 31, of Beaumont, Texas

  • Carlos Rodriguez-Torres, 35, of Lumberton, Texas

  • Ernest Gatlin, 38, of Beaumont, Texas

  • Harvey Davis, 38, of Bon Weir, Texas

  • David Wells, 38, of Lumberton, Texas

  • Kionte Hawkins, 29, of Beaumont, Texas

  • Damon Hargrave, 37, of Beaumont, Texas

  • Jakorian Sanderson, 20, of Beaumont, Texas

  • LeeJaray Smith, 40, of Beaumont

  • Joseph Carter, 39, of Beaumont, Texas

  • Dwayne Morgan, 25, of Vidor, Texas

  • Dacqure Holmes, 38, of Port Arthur, Texas

  • Corey Stone, 35, of Beaumont, Texas

  • Arne Koenig, 43, of Buna, Texas; and

  • Eric Martin, 32, of Port Arthur, Texas

The defendants are alleged to have participated in multiple violent crimes in Southeast Texas, including Jefferson, Hardin, Orange, and Jasper counties. Those crimes include bank robbery, firearms violations, drug trafficking violations, money laundering, immigration violations, and conspiracy to commit robberies interfering with interstate commerce. Many defendants are also alleged to have gang affiliations. If convicted, they face penalties of from five years to Life in federal prison.

These cases are being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Beaumont Police Department, the U.S. Drug Enforcement Administration, the Federal Bureau of Investigation, the Port Arthur Police Department, the Orange Police Department, the Jasper County Sheriff’s Office and the Jefferson County Sheriff’s Office.

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

TYLER, Texas – A 31-year-old Longview, Texas 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.

Desmond Denard Brown pleaded guilty on Mar. 23, 2017, to possessing with intent to distribute and distribution of crack cocaine and was sentenced to 65 months in federal prison today by U.S. District Judge Ron Clark.

According to information presented in court, on June 13, 2016, Brown distributed approximately 28 grams of crack cocaine in Gregg County, Texas. Brown was indicted by a federal grand jury on Jan. 18, 2017.

This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Mary Ann Cozby.

TEXARKANA, Texas – A 44-year-old Texarkana man has pleaded guilty to federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.

Dixon Kelley, III, pleaded guilty to armed bank robbery and use of a firearm during a violent crime today before U.S. Magistrate Judge Caroline Craven.

According to information presented in court, on Apr. 5, 2017, Kelley entered the Bank of the Ozarks on Richmond Road in Texarkana, Texas, pointed a semi-automatic handgun at the tellers and demanded cash. Kelley left the bank with the cash before fleeing in his vehicle. Law enforcement authorities were to locate Kelley, but when they attempted to stop him, he fled in the vehicle before eventually getting it stuck in a field. Kelley exited the vehicle and fired upon the officers before attempting to flee on foot. He was arrested and indicted by a federal grand jury.

Under federal statutes, Kelley faces up to 25 years in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.

This case is being investigated by the Federal Bureau of Investigation and the Texarkana, Texas Police Department and is being prosecuted by Assistant U.S. Attorney Jonathan D. Ross.

LUFKIN, Texas — A Jasper, Texas couple and their daughter have been found guilty of federal conspiracy violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston.

Walter Diggles, 65, his wife, Rosie Diggles, 63, both of Jasper, and their daughter, Anita Diggles, 41, of Houston, have been found guilty of 28 counts including conspiracy to commit wire fraud, wire fraud, theft from programs receiving federal funds and engaging in monetary transactions from unlawful activity. The jury deliberated for 2 ½ hours before returning the guilty verdict late on Aug, 3, 2017, following a nine-day trial before U.S. District Judge Ron Clark.

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

“Our Constitution provides for trial by jury for those who contest criminal charges,” said Acting U.S. Attorney Brit Featherston. “The jury in this case heard, viewed and studied the evidence that was presented over nine days of trial, from both the defense and the government. At the ringing of the bell, the verdict was guilty for all and on all counts. Justice for all of the DETCOG’s 12 counties and for the taxpayers has been done.”

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

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

Peter Zuccarelli, 62, of Plano, Texas pleaded guilty today to conspiring to smuggle and illegally export from the U.S., radiation hardened integrated circuits (RHICs) for use in the space programs of China and Russia, in violation of the International Emergency Economic Powers Act (IEEPA).

Acting Assistant Attorney General for National Security Dana J. Boente and Acting U.S. Attorney Brit Featherston for the Eastern District of Texas made the announcement.  The plea was entered before U.S. Magistrate Judge Kimberly Priest-Johnson.

Zuccarelli pleaded guilty to engaging in a conspiracy to smuggle and illegally export from the U.S. items subject to IEEPA, without obtaining licenses from the Department of Commerce.  According to the allegations contained in the Information filed against Zuccarelli and statements made in court filings and proceedings, including today’s guilty plea:

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.

At sentencing, Zuccarelli faces a maximum statutory term of five years imprisonment and a maximum fine of $250,000.  The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes.  If convicted of any offense, the defendant’s sentence will be determined by the court after considering the advisory Sentencing Guidelines and other statutory factors.  A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.

This case is being investigated by the 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; and the Department of Defense, Defense Criminal Investigative Service. This case is being prosecuted by the U.S. Attorney’s Office for the Eastern District of Texas together with the Counterintelligence and Export Control Section of the Justice Department’s National Security Division. 

PLANO, Texas – A 62-year-old Plano, Texas man has pleaded guilty to federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston and Acting Assistant Attorney General for National Security Dana J. Boente today.

Peter Zuccarelli pleaded guilty to conspiring to smuggle and illegally export from the U.S., radiation hardened integrated circuits (RHICs) for use in the space programs of China and Russia, in violation of the International Emergency Economic Powers Act (IEEPA). The plea was entered today before U.S. Magistrate Judge Kimberly Priest-Johnson.

Zuccarelli pleaded guilty to engaging in a conspiracy to smuggle and illegally export from the U.S. items subject to IEEPA, without obtaining licenses from the Department of Commerce. According to the allegations contained in the Information filed against Zuccarelli and statements made in court filings and proceedings, including today’s guilty plea:

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.

At sentencing, Zuccarelli faces a maximum statutory term of five years imprisonment and a maximum fine of $250,000. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the defendant’s sentence will be determined by the court after considering the advisory Sentencing Guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.

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

BEAUMONT, Texas – A 51-year-old Vidor, Texas woman has pleaded guilty to federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.

Eva Renee Powell pleaded guilty to bank robbery today before U.S. Magistrate Judge Keith Giblin.

According to information presented in court, on May 20, 2016, Powell entered the Capital One Bank in Orange, Texas wearing sunglasses, a bulky coat and a dark hat. Powell gave a note to the teller demanding money and threatening to blow up the bank if bank personnel did not comply or alerted authorities. Powell fled with an unspecified amount of cash. She was not identified as the Capital One bank robber until nearly a year later, on March 18, 2017, she was caught fleeing a remarkably similar bank robbery in Lake Charles, Louisiana. Investigators with the Orange Police Department were able to connect her to the Orange, Texas bank robbery. In a combined proceeding in Beaumont federal court, Powell also pleaded guilty to the Lake Charles, LA, bank robbery. In that case, as she was fleeing the bank with an undisclosed amount of cash, a concerned citizen followed her get-away car and called authorities. He was then able to block her car's escape from a parking lot long enough for the Lake Charles police to arrive and make the arrest.

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

This case is being investigated by the Federal Bureau of Investigation, the Lake Charles Police Department, the Calcasieu Parish Sheriff’s Office, the Orange County Sheriff’s Office, and Orange Police Department and is being prosecuted by Assistant U.S. Attorney Randall L. Fluke.

PLANO, Texas — A 43-year-old Richardson, Texas man has been found guilty of child enticement charges in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston.

     Jason Craig Montgomery was found guilty by a jury of attempted coercion and enticement of a minor. The verdict was reached late in the evening of July 27, 2017, following a three-day trial before U.S. District Judge Marcia Crone.

     According to information presented in court, in March 2017, Montgomery placed an ad on an online classified advertising website that raised law enforcement concerns as to whether Montgomery was seeking to engage in sexual activity with a child. Accordingly, an undercover FBI agent responded to the ad as an individual with access to a minor child. Between March 30, 2017 and April 18, 2017, Montgomery engaged in an ongoing and repeated exchange of messages with the undercover agent, in an attempt to coerce and entice the minor child to whom the agent purportedly had access. In those messages, Montgomery expressed his interest in enticing the child, indicated his willingness to engage in sexual activity with the child, his concerns about law enforcement detection, and asked to meet with the child. On April 18, 2017, Montgomery arrived at a designated residence in Plano, Texas, at which time he was arrested by members of the Plano Police Department and the Federal Bureau of Investigation. A search of Montgomery’s vehicle revealed a number of items brought for the child, including alcohol and prophylactics. Montgomery was indicted by a federal grand jury on May 10, 2017.

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

     This case is being 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 Federal Bureau of Investigation and the Plano Police Department and prosecuted by Assistant U.S. Attorneys Marisa Miller and Bradley Visosky.

BEAUMONT, Texas – A Houston father and son were each sentenced to federal prison for federal drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.

Rolando Delarosa, Sr., 43, and Rolando Delarosa, Jr., 22, both pleaded guilty on Feb. 27, 2017, to conspiracy to possess with intent to distribute methamphetamine and were sentenced to 120 months in federal prison today by U.S. District Judge Thad Heartfield.

According to information presented in court, between December 2013 and June 2015, the Delarosas were involved in a drug trafficking conspiracy that was responsible for trafficking methamphetamine through Houston and into the surrounding areas. An investigation began after a co-conspirator, Jesus Silva, made four deliveries to an undercover officer in Houston and Cleveland, Texas. After each of these deliveries, Silva was followed back to a home known to be owned and occupied by Rolando Delarosa, Sr.

Wiretaps confirmed that Delarosa, Sr. was Silva's supplier and that he intended to distribute, and distributed more than 2 ½ kilograms of methamphetamine. Silva continued to provide methamphetamine to an undercover officer and introduced Rolando Delarosa, Jr. to confidential sources as a supplier of methamphetamine. Delarosa, Jr. agreed to sell three kilograms of methamphetamine to a confidential source. Agents followed Delarosa, Jr. back to Delarosa, Sr.'s house, where Delarosa, Jr. and his girlfriend also lived. The officers then noticed Delarosa, Jr. and his girlfriend leave the residence in the same vehicle with Delarosa, Jr. driving. A traffic stop was conducted on the vehicle and Delarosa, Jr. and his girlfriend were observed by the officers as switching seats before coming to a complete stop. The officers immediately recognized the smell of raw and burnt marijuana coming from the vehicle when they approached it as well as a small bag of marijuana in plain sight on the center console. A search of the vehicle revealed a bag containing a large amount of methamphetamine inside. Analysts at the DEA Crime Lab determined that this substance was, in fact, almost one pound of methamphetamine. Officers then went to the residence of Delarosa Sr. and were given consent to search the residence. Officers located two rifles and more methamphetamine in the residence.

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.

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

SHERMAN, Texas – A 39-year-old Denison, Texas man has been sentenced to federal prison for federal drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.

Mark Alan Bennett pleaded guilty on Mar. 29, 2017, to conspiracy to possess with intent to distribute methamphetamine and possession of a firearm during a drug trafficking crime and was sentenced to 241 months in federal prison today by U.S. District Judge Amos Mazzant.

According to information presented in court, between August and November 2016, Bennett was found to be in possession of methamphetamine on four occasions, two traffic stops and during the execution of two search warrants at his Denison residence. All together, 177.32 grams of methamphetamine was recovered from Bennett. During the execution of a search warrant on Sep. 23, 2016, law enforcement agents also recovered a short-barreled shotgun. Bennett was indicted by a federal grand jury on Dec. 21, 2016 and charged with drug trafficking violations.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Denison Police Department and the Wise County Sheriff’s Office. This case was prosecuted by Assistant U.S. Attorney William R. Tatum.

BEAUMONT, Texas – A 28-year-old federal prison inmate has been sentenced for federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.

Reginald Winfield Pablo pleaded guilty on Mar. 20, 2017 to possession of a prohibited object and was sentenced to 12 months and one day in federal prison today by U.S. District Judge Ron Clark. This sentence will be served at the conclusion of the sentence Pablo is currently serving.

According to information presented in court, on Sep. 22, 2016, Pablo, an inmate at the Federal Correctional Complex in Beaumont, was observed fighting with another inmate. After breaking up the fight, prison staff conducted a pat-down of the inmates and found two homemade weapons inside Pablo’s left pocket. The weapons had been constructed out of metal and sharpened to a point on one end. The weapons measured approximately 7 inches in length each. Such objects are prohibited in the Beaumont Federal Correctional Complex.

This case was investigated by the Bureau of Prisons and prosecuted by Assistant U.S. Attorney Randall L. Fluke.

BEAUMONT, Texas – A 27-year-old federal prison inmate has been sentenced for possessing a shank in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.

Rafael Castillo, Jr., pleaded guilty on Feb. 28, 2017 to possession of a prohibited object and was sentenced to 20 months in federal prison today by U.S. District Judge Ron Clark. This sentence will be served at the conclusion of the sentence Castillo is currently serving.

According to information presented in court, on June 20, 2016, Castillo, an inmate at the Federal Correctional Complex in Beaumont, was found during a pat-down search, to be in possession of two homemade weapons measuring approximately 5.5 inches and 7 inches in length each. Castillo had the weapons concealed in his pants pocket. Each weapon, commonly referred to as a ‘shank,’ had been constructed out of metal material and had been sharpened to a point and designed to be used as a weapon. Such objects are prohibited in the Beaumont Federal Correctional Complex.

This case was investigated by the Bureau of Prisons and prosecuted by Assistant U.S. Attorney Randall L. Fluke.

TYLER, Texas – A 30-year-old Longview, Texas man has been indicted 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 today and charged with conspiracy to commit wire fraud and mail fraud, multiple counts of mail fraud, and multiple counts of student financial aid fraud.

According to the indictment, from June 2013 to September 2015, Brisco and others are alleged to have 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. If convicted, Brisco faces up to 20 years in federal prison.

An indictment merely establishes probable cause, and the defendant is presumed innocent unless proven guilty.

Brisco's mother, Gracie Brisco, 54, of Longview, was indicted on Mar. 22, 2017, on multiple counts of student financial aid fraud.

Brisco's sister, Shanitra Frost, 34, of Longview, pleaded guilty today before U.S. Magistrate Judge K. Nicole Mitchell to student financial aid fraud. Frost faces up to 5 years in federal prison at sentencing. A sentencing date has not been set.

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. Attorney Nathaniel C. Kummerfeld is prosecuting this case.

TEXARKANA, Texas – A 37-year-old Maud, Texas man has been sentenced to federal prison for violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston.

Jason Allen Autrey pleaded guilty on Feb. 9, 2017, to theft of government property and was sentenced to 30 months in federal prison on July 14, 2017 by U.S. District Judge Robert W. Schroeder, III. Autrey was also ordered to pay restitution in the amount of $762,000.

According to information presented in court, between July 2015 and May 2016, Autrey stole and converted to his own use, numerous vehicle parts consisting of Hawker batteries and Bradley Bolt-On Armor Kit parts from the Red River Army Depot located in Hooks, Texas. Autrey had access to the parts as he was employed as a heavy equipment mechanic inspector in the Dynamometer Section of the Maintenance Directorate at the Red River Army Depot. Once Autrey removed the items from the Depot, he took them to Tri-State Iron and Metal in Texarkana, Arkansas to sell them for their scrap value. The total value of the items stolen was at least $762,000. The total sum of cash he received from Tri-State Iron and Metal was $22,959.84. Autrey agreed to a money judgment in the amount of $22,959.84 against him, as well as an order of restitution for the total amount of losses caused by his criminal conduct. Autrey was indicted by a federal grand on June 15, 2016.

This case was investigated by the United States Army and Red River Army Depot, Criminal Investigators and prosecuted by Assistant U.S. Attorneys Jonathan D. Ross and Ryan Locker.

BEAUMONT, Texas – A 20 year old Beaumont, Texas man was sentenced to federal prison for violating the terms of his probation in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.

­­­­­ Trey Joseph Frederick was sentenced to five years of federal probation in October, 2016 after he pleaded guilty to a violation of the Endangered Species Act. In January, 2016, a Texas Game Warden received two calls reporting that two Whooping Cranes had been shot on Blair Road in Jefferson County. Further investigation revealed that Frederick had been seen in the area with a hunting rifle and claimed to be hunting geese. Federal agents contacted Frederick at his home where he admitted to killing the cranes.

Whooping Cranes are a species of migratory birds in danger of extinction throughout all or a significant portion of its range, and therefore an endangered species as defined by the Endangered Species Act, making it unlawful to capture, kill, trap, or collect Whooping Cranes, or attempt to engage in such conduct in the United States.

Today, Frederick was back in federal court facing charges that he violated the terms of his probation for, among other things, using an AR-15 assault rifle to hunt from a roadway in Jefferson County, Texas. The terms of Frederick’s probation specifically prohibited him from owning or possessing firearms, ammunition or any other dangerous weapon. Frederick is also prohibited from hunting or fishing anywhere in the United States. During his court appearance today, U. S. Magistrate Judge Zack Hawthorn sentenced Frederick to 11 months incarceration to be followed by a one year term of supervised release.

Acting U.S. Attorney Featherston made the following statement, “Trey Frederick was given the opportunity of probation when he was first convicted of killing two federally protected whooping cranes. Apparently, Mr. Frederick did not appreciate the leniency he was given, and today, he learned the consequences. Mr. Frederick will now have 11 months to contemplate his actions.”

This case was investigated by special agents with the U.S. Fish and Wildlife Services, Office of Law Enforcement and Game Wardens with the Texas Parks and Wildlife Department and prosecuted by Assistant U.S. Attorney Joseph R. Batte.

BEAUMONT, Texas – A 42-year-old Beaumont, Texas man has been arrested on federal charges in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.

Westley Judy Pollard, Jr., was indicted by a federal grand jury on July 6, 2017 and charged with 11 counts of mail fraud. Pollard was arrested in Beaumont this morning and went before U.S. Magistrate Judge Zack Hawthorn for an initial appearance.

According to the indictment, from 2011 to 2016, Pollard worked as a salesperson in the rare and precious coin field. During this time, Pollard was employed by various coin companies in Beaumont, Texas and the surrounding area, where he sold coins to individual investors. Beginning in early 2014, Pollard began contacting prior customers and telling them that he could find a purchaser for their coin collections at significantly higher prices than they originally paid, or that he could get their coins re-graded to a higher level of condition, which would increase their value. At Pollard’s direction, the customers would allow him to take possession of their coins so that he could sell or re-grade them, and then return the proceeds or re-graded coins to them. Pollard directed the customers to mail the coins to him via FedEx, or, in some instances, he would take possession directly from the customer. After receiving the coins, Pollard would then sell them to pawnshops or other coin retailers, at significantly lower prices than the investors originally paid and without their consent, using the proceeds from the sales for his personal benefit. In connection with this scheme, Pollard convinced four customers to send him their coins, with an approximate combined value of $5,480,000.

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

This case is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Christopher T. Tortorice.

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

BEAUMONT, Texas – A 49-year-old Port Arthur, Texas man has been sentenced for his part in a conspiracy targeting federal inmates and their families in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.

Larry Lee Stephenson pleaded guilty on Jan. 24, 2017 to conspiracy to commit wire fraud and was sentenced to 41 months in federal prison today by U.S. District Judge Marcia Crone. Stephenson was also ordered to pay restitution, along with the other defendants, in the amount of $3,456,780.

According to information presented in court, in September, 2016, separate indictments were handed down by federal grand juries in the Eastern District of Texas, Beaumont Division, and the Southern District of Florida, Miami Division, alleging six individuals in the Port Arthur and Houston area were involved in a nationwide six-year scheme which defrauded the relatives of federal inmates by falsely representing that they could obtain reductions in their relatives’ sentences in exchange for the payment of cash and wire transfers of funds. The payments were falsely represented to be for the payment for a network of confidential informants who would make undercover drug transactions under the direction of the courts and prosecutors which would allow the incarcerated inmates to ask the court for reductions of sentences for providing substantial assistance to the government under the Federal Rules of Criminal Procedure. In reality, the money was spent for the personal benefit of the defendants and there was never any network of informants or undercover transactions. Federal inmates do not have to pay for substantial assistance motions for reductions of sentences which normally only require information to be provided by such inmates against co-defendants as well as trial testimony. The Texas indictment alleged a wire fraud and conspiracy to commit wire fraud involving six individuals: Alvin James Warrick, 41, Colitha Patrice Bush, 36, Ronald B. Shepherd, 33, and Alvin Turner, 54, all of Houston, Texas; and Larry Lee Stephenson, 49, and Wilbert Brown, 42, of Port Arthur, Texas. Additionally Warrick, Bush, and Shepherd were also the subject of the indictment from the Southern District of Florida also alleging a wire fraud and conspiracy to commit wire fraud. The indictments allege different victims in and around each district. The scheme resulted in losses to inmate families of over $4 million.

Warrick and Bush, the organizers and ringleaders of the scheme, were sentenced on June 29 in Miami, Florida, by U.S. District Judge Joan Lenard of the Southern District of Florida, to 235 months and 96 months in prison, respectively, with an order for a forfeiture money judgment in the amount of over $4.4 million. Shepherd was also sentenced by Judge Lenard to 28 months in federal prison on the Florida indictment. Warrick, and Bush previously pleaded guilty to wire and mail fraud conspiracy charges in both indictments in Miami. Shepherd had also pleaded guilty to the Florida indictment. Stephenson pleaded guilty to the Texas indictment in Beaumont in January. Turner has pleaded guilty to the conspiracy charge in Beaumont and is awaiting sentencing. Wilbert Brown is detained awaiting trial in Beaumont in August.

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

BEAUMONT, Texas – A 51-year-old federal inmate has pleaded guilty to assaulting a prison guard in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.

Terence Millsaps, of New Orleans, LA, pleaded guilty to assaulting a federal officer before U.S. Magistrate Judge Zack Hawthorn on July 10, 2017.

According to information presented in court, on Feb. 9, 2017, while an inmate with the Bureau of Prisons, Millsaps assaulted a correctional officer by striking the officer in the face with a closed fist.

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

This case is being investigated by the Federal Bureau of Prisons and prosecuted by Assistant U.S. Attorney Randall L. Fluke.

TEXARKANA, Texas – A 46-year-old Bogata, Texas man has been sentenced for federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.

John Purviance pleaded guilty on Feb. 6, 2017 to unlawful use of a pesticide and unlawful taking of migratory birds and was sentenced to two years of federal probation today by U.S. Magistrate Judge Caroline M. Craven.

According to information presented in court, on April 9, 2016, Purviance mixed a restricted-use pesticide with corn syrup and then spread the mixture along a tree line of a ranch in Bowie County with the intent to poison and kill feral hogs. Although feral hogs were among the animals that died from consuming the poison, other animals also died, including blackbirds, cardinals, and at least one vulture, which are all migratory birds and protected by federal statute. Purviance was also fined $2,375 and ordered to pay restitution in the amount of $4,198.

This case was investigated by the U.S. Fish and Wildlife Service, Criminal Investigation Division, the Environmental Protection Agency, and the Texas Department of Agriculture and prosecuted by Assistant U.S. Attorney Jim Noble.

TYLER, Texas – Two Tyler, Texas men have pleaded guilty to federal drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.

Stacey Godsey, 44, and Joseph Shay Burton, 39, pleaded guilty to conspiracy to import anabolic steroids today before U.S. Magistrate Judge K. Nicole Mitchell.

According to information presented in court, beginning in the summer of 2014 and continuing until the spring of 2016, Godsey and Burton 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.

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

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

LUFKIN, Texas – A 24-year-old Nacogdoches, Texas man has been sentenced to 20 years in federal prison for federal drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.

Jon McNeely pleaded guilty on Mar. 23, 2017, to possession with intent to distribute methamphetamine and was sentenced to 240 months in federal prison today by U.S. District Judge Ron Clark.

According to information presented in court, McNeely was a major methamphetamine trafficker in Nacogdoches and Angelina counties. His drug trafficking organization was responsible for distributing over 15 kilograms of methamphetamine in the area. McNeely was indicted by a federal grand jury on Dec. 7, 2016, and charged with drug trafficking violations.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Texas Department of Public Safety – Criminal Investigation Division, Nacogdoches Police Department, Lufkin Police Department, Angelina County Sheriff’s Office and the Nacogdoches County Sheriff’s Office. This case was prosecuted by Assistant U.S. Attorney Paul Hable.

TEXARKANA, Texas – A 50 year old Avery, Texas man was sentenced to federal prison for crimes he committed in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.

Bobby Wayne Lance was sentenced to a total of 1054 months today during a sentencing hearing before U.S. District Judge Robert Schroeder, III.

According to information presented in court, Lance robbed a Bowie County convenience store, a Lamar County movie theater and a Franklin County bank in a crime spree that spread over several days in November 2015. After Lance was identified as a suspect, deputies from multiple jurisdictions, along with the FBI, searched Lance’s home, where they recovered two bags of cash containing “bait bills” that had been photocopied by the bank to be used in the event of a robbery. In addition to the money, the search also led to the discovery of a loaded revolver, recovered from a shed behind Lance’s home. In his truck, officers found receipts for over $73,000 for past due bills that had been paid in the days between the thefts.

Lance was convicted of violating the Hobbs Act for the robbery of the Movies 8 in Paris, Texas on November 8, 2015 and the robbery of the Carter RV Convenience Store in Dekalb, Texas on November 14, 2015. He was also convicted of bank robbery for the hold-up of the First National Bank in Mount Vernon, Texas on November 17, 2015 and a carjacking that occurred that same date in relation to the bank robbery. He was also convicted of four counts of use or carrying of a firearm in furtherance of a crime of violence, in relation to all the robberies.

“This is a great day for the citizens of this community,” said Brit Featherston, Acting U.S. Attorney, “Lance thought he was a real life Clyde Barrow, minus the “Bonnie.” This very appropriate and just sentence, of over eighty-seven years, will insure that Lance will never harm another person in our community.”

This case was investigated by the Federal Bureau of Investigation, Paris Police Department, Texarkana, Texas Police Department, Franklin County Sheriff’s Office, Red River County Sheriff’s Office, Bowie County Sheriff and the Texas Rangers. This case was prosecuted by Assistant U.S. Attorneys Ryan Locker, Robert Wells, and Jonathan Ross.

WASHINGTON – Two shipping companies based in Egypt and Singapore pleaded guilty today in federal court in Beaumont, Texas, to violating the Act to Prevent Pollution from Ships (APPS) and obstruction of justice for covering up the illegal dumping of oil-contaminated bilge water and garbage from one of their ships into the sea.

Acting Assistant Attorney General Jeffrey H. Wood for the Department of Justice Environmental and Natural Resources Division and Acting U.S. Attorney Brit Featherston for the Eastern District of Texas, announced the plea agreement. The agreement includes a $1.9 million dollar penalty and requires marine and coastal restoration efforts at three National Wildlife Refuges located on the Gulf of Mexico in East Texas, where the offending vessel transited and made port stops.

“This case involved egregious violations of U.S. and international laws that are key to protecting the oceans from pollution, and deliberate efforts to mislead U.S. Coast Guard officials about these criminal acts,” said Acting Assistant Attorney General Wood. “The Department of Justice will continue to aggressively prosecute criminal acts that pollute the oceans.”

“Intentional acts of pollution in the Gulf of Mexico and Texas wetlands will not be tolerated, and violators such as defendants, Egyptian Tanker Company and Thome Ship Management, will be held responsible for their conduct,” said Acting U.S. Attorney Brit Featherston for the Eastern District of Texas. “Our citizens depend on clean water for their recreation and their livelihood. This kind of irresponsible conduct threatens both.”

Defendants Egyptian Tanker Company and Thome Ship Management are the owner and operator of the 57,920 gross ton, 809-foot long, ocean-going, oil tank ship called the M/T ETC MENA. Large ships like the M/T ETC MENA generate oil-contaminated bilge waste when water mixes in the bottom or bilges of the ship with oil that has leaked from the ship’s engines and other areas. This waste must be processed to separate the water from the oil and other wastes by using pollution prevention equipment, including an Oily Water Separator (OWS), before being discharged into the sea. These large ships also generate garbage, including ash from the incinerators, steel, and other non-organic wastes, which are collected in plastic bags and stored onboard until they can be disposed of properly at shore-side facilities. APPS requires that the disposal of the ship’s bilge waste and garbage be fully recorded in the ship’s Oil Record Book and Garbage Record Book.

The investigation began on April 26, 2016, when the U.S. Coast Guard’s Marine Safety Unit in Port Arthur, Texas, received information from a crew member on the M/T ETC MENA that the ship had illegally dumped bilge waste overboard into the ocean. The crewmember provided a written statement, photographs, and video of the alleged conduct. During the inspection of the ship that same day, the Coast Guard found a pump covered in oil submerged in the ship’s bilge primary tank that looked similar to the pump that the crew member said was used to pump the bilge waste overboard.

“Environmental crimes put the marine environment and our natural resources at risk,” said Rear Admiral Dave Callahan, Commander, Eighth Coast Guard District. “This case serves as another example that the United States will not tolerate these actions and violators will be held accountable. Coast Guard Marine Safety Unit Port Arthur, the Coast Guard Investigative Service, and the Department of Justice should be commended for their tireless efforts and cooperation in investigating and prosecuting this case.”

In pleading guilty, the companies admitted that its crew members bypassed the ships OWS and discharged bilge water into the ocean in March 2016 without it first passing through this pollution prevention equipment. The government’s investigation also revealed that crew members were instructed to throw plastic garbage bags filled with metal and incinerator ash into the sea in March 2016. The discharge of bilge water without using the OWS and of plastic garbage into the ocean was not entered into the ship’s Oil Record Book and Garbage Record Book in violation of APPS. The companies also pleaded guilty to obstruction of justice for presenting these false documents to the Coast Guard during the inspection in Port Arthur, Texas.

The companies will be placed on a four-year term of probation that includes a comprehensive environmental compliance plan to ensure, among other things, that all of ships operated by Thome Ship Management that come to the United States fully comply with all applicable marine environmental protection requirements established by national and international laws. The compliance plan will be implemented by an independent auditing company and supervised by a court-appointed monitor.

Assistant U.S. Attorney Joseph R. Batte of the Eastern District of Texas, Senior Trial Attorney David P. Kehoe, and Trial Attorney John D. Cashman at the Environmental Crimes Section of the Department of Justice prosecuted the case. The case was investigated by the Coast Guard’s Investigative Service.

TYLER, Texas – Two Tyler, Texas men have been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.

Hubert Wright, 60, pleaded guilty on Jan. 9, 2017, to possessing with intent to distribute over 500 grams of cocaine and possessing firearms in furtherance of drug trafficking. Wright was sentenced to 120 months in federal prison today by U.S. District Judge Ron Clark.

Kevin Williams, 38, pleaded guilty on Jan. 10, 2017, to possessing with intent to distribute crack and powder cocaine and was sentenced to 30 months in federal prison today by Judge Clark.

According to information presented in court, on May 5, 2016, Williams drove Nyrearae Lewis to the residence of Wright so that Lewis could sell drugs to Wright. Lewis was in possession of approximately 130 grams of powder cocaine when he got into Williams’ vehicle, to go to Wright’s house. Once at Wright’s house, Williams watched while Wright and Lewis converted some of the cocaine to approximately 44 grams of crack cocaine. Wright ultimately declined to purchase any cocaine from Lewis, so Lewis departed the residence with the cocaine he brought to the residence, including the 44 grams of newly converted crack cocaine. Soon after, Williams was pulled over by local law enforcement and the drugs were seized. Williams was indicted by a federal grand jury on Oct. 5, 2016.

On May 19, 2016, federal agents executed a search warrant at Wright’s residence in the 500 block of West 4th Street in Tyler. During the search, agents discovered and seized three handguns, a rifle, a shotgun, multiple rounds of ammunition, $335,095.00 in currency, two computers, and approximately 2.5 kilograms of cocaine. All of the seized property was found in a recording studio within the residence. Agents also discovered plates, utensils, plastic bags, digital scales, and a currency counter inside the recording studio. Wright was indicted by a federal grand jury on Aug. 24, 2016.

These cases were investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Tyler Police Department, Texas Department of Public Safety – Law Enforcement Division, and prosecuted by Assistant U.S. Attorney Jim Noble.

TYLER, Texas – A 56-year-old North Texas man has pleaded guilty to committing perjury in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.

Albert Davis, formerly of Richardson, Texas, pleaded guilty to making false declarations before the court today before U.S. Magistrate Judge John D. Love.

According to information presented in court, in 2011, Davis, through his company, LBDS Holding Company, LLC, filed a federal suit against South Korean-company ISOL Technology, Inc. (LBDS Holding Company, LLC v. ISOL Technology, Inc., et al., Case No. 6:11-CV-428) in the Eastern District of Texas, alleging breach of contract, trade secret misappropriation, and unfair competition. During the 2014 trial of the case, Davis and his co-defendant and former business partner, David Hernon, 56, of Fishers, Indiana, testified falsely about business dealings with Cerner Corporation and offered false exhibits to support LBDS’s claim for damages. At the conclusion of the trial, the jury awarded LBDS a verdict of $25 million. When the perjury was discovered, attorneys for ISOL filed an emergency motion for sanctions against LBDS. The district court vacated the verdict, dismissed LBDS’s case with prejudice, and awarded ISOL $738,706.47 in attorney’s fees.

In 2015, Davis and Hernon were charged in the Eastern District of Texas with making false declarations before court. Hernon pleaded guilty on December 29, 2015, and on July 13, 2017, he was sentenced to 15 months in federal prison by U.S. District Judge Thad Heartfield.

Davis, David Tayce, 67, of Lucas, Texas, Hernon, and Richard Bryant, 41, and his wife, Christina Bryant, 41, both of Sachse, Texas, were charged in a related case in the Western District of Missouri for conspiring to commit wire fraud. From August 25, 2008 to February 19, 2015, Davis and his co-conspirators engaged in a scheme to use Cerner Corporation’s reputation and standing in the medical field to manipulate business transactions and court proceedings in their favor.

On April 24, 2017, Davis, was sentenced by U.S. Chief District Judge Greg Kays in the Western District of Missouri to 12 years in federal prison. The court also ordered Davis to pay $19,151,555 in restitution to the victims of the fraud scheme.

On April 25, 2017, Tayce, Hernon, Richard Bryant, and Christina Bryant were sentenced in separate appearances before Judge Kays. Tayce was sentenced to six years and six months in federal prison and ordered to pay $19,151,555 in restitution. Hernon was sentenced to four years and four months in federal prison and ordered to pay $6,487,224 in restitution. Richard and Christina Bryant were each sentenced to five years of probation and ordered to pay $8,079,197 in restitution.

In a related matter, in the summer of 2013, Davis and Tayce, approached Community Trust Bank regarding financing for iHeart Care cardiovascular surgical centers that Davis and Tayce planned to develop across North Texas. The plan, as outlined by Davis and Tayce, was to open multiple iHeart cardiovascular surgical centers and team up with physicians at each location who would invest in the surgical centers and refer patients to the cardiovascular practices. Over the course of the next year, Davis, Tayce, and Rachelle Dashner, 44, of Dallas, Texas, prepared loan documents related to various iHeart Care locations in Denton, Ennis, Mesquite, and Mansfield. Davis, Tayce, and Dashner identified numerous physicians as guarantors in the loan documents without the physicians’ knowledge and authorization. The loan documents were submitted to Community Trust Bank, and based upon various false and fraudulent representations, Community Trust Bank funded numerous loans to iHeart. In many instances, the iHeart facilities for which financing was obtained were never built or made operational. In total, Davis, Tayce, and Dashner submitted fraudulent loan documents to Community Trust Bank and secured five fraudulent loans totaling over $7,500,000.

Dashner was charged in the Eastern District of Texas with conspiracy to commit bank fraud. She pleaded guilty on May 18, 2017. At sentencing, Dashner faces up to five years in federal prison.

This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney Nathaniel C. Kummerfeld, in cooperation with Assistant U.S. Attorney Matthew P. Wolesky of the Western District of Missouri and Assistant U.S. Attorney Kimberly Davis of the Western District of Arkansas.

BEAUMONT, Texas – A 44-year-old Beaumont man has been sentenced to five years in federal prison for firearms violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.

David Warren Childress pleaded guilty on Mar. 6, 2017, to being a felon in possession of a firearm and was sentenced to 60 months in federal prison on June 15, 2017 by U.S. District Judge Ron Clark.

According to information presented in court, on Dec. 10, 2015, law enforcement officers received information that Childress had just been seen throwing a firearm in the trash at the Shell gas station located at the corner of College Street and Major Drive in Beaumont. Officers were dispatched to the location where a 20-gauge shotgun with a modified barrel was found in the trash. Officers then went to Childress’ residence where they received consent to search. During the search, officers located another rifle in the living room of the home. Childress is a convicted felon, having been found guilty of burglary of a habitation in Walker County in 1994 and possession of cocaine in Harris County in 2010. As a convicted felon, Childress is prohibited by federal law from owning or possessing firearms.

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.

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