Eastern District of Texas

TYLER, Texas – A 54-year-old Mt. Enterprise, Texas man has been sentenced to federal prison for robbing a bank in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.   

Patrick Terry Gilbert pleaded guilty on May 27, 2016 to armed bank robbery and was sentenced to 180 months in federal prison by U.S. District Judge Michael H. Schneider on Sep. 15, 2016.  Gilbert was also ordered to pay restitution in the amount of $16,134.00.

According to information presented in court, on Oct. 23, 2015, Gilbert entered the Capital One Bank in Longview, Texas, dressed in dark clothing, wearing a “Scream” mask and armed with a short-barreled shotgun.  Gilbert approached two bank tellers, pointed the shotgun at them and demanded all of their money.  Gilbert took more than $15,000 from the tellers and left the bank.  Several weeks later, Gilbert was arrested in Nacogdoches County, Texas.  He was indicted by a federal grand jury in November 2015.

            This case was investigated by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Longview Police Department, and the Nacogdoches County Sheriff’s Office.  This case was prosecuted by Assistant U.S. Attorney Frank Coan.

TYLER, Texas – A 65-year-old Dallas County, Texas, physician, has been resentenced to federal prison for health care fraud and identity theft violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales. 

In July 2014, Tariq Mahmood, of Cedar Hill, Texas, was found guilty by a jury of conspiracy to commit health care fraud, seven counts of health care fraud, and seven counts of aggravated identity theft following a four-day trial before U.S. District Judge Michael Schneider.  Mahmood had been indicted by a federal grand jury on April 11, 2013.

According to information presented in court, Mahmood, a general practitioner, owned and operated several hospitals in the state of Texas, including Cozby Germany Hospital in Grand Saline, Renaissance Terrell Hospital in Terrell, Central Texas Hospital in Cameron, Community General Hospital in Dilley, and Lake Whitney Medical Center in Whitney.  From January 2010 to April 2013, Mahmood and others carried out a scheme to defraud Medicare and Medicaid through the submission of false and fraudulent claims.  Mahmood and others added, changed, and incorrectly sequenced diagnostic codes in a way that did not reflect the actual diagnoses and conditions of the patients and often did so without reviewing the medical records.  They submitted false and fraudulent claims to Medicare and Medicaid based on the added, changed, and incorrectly sequenced diagnostic codes.  Mahmood and others also unlawfully used Medicare beneficiaries’ names and Medicare numbers in order to commit health care fraud. 

Following his appeal, Mahmood was resentenced to 135 months in federal prison and ordered to pay restitution in the amount of $145,358.23 to Medicare, Medicaid, and Blue Cross Blue Shield of Texas.

The case was investigated by the Texas Office of the Attorney General – Medicaid Fraud Control Unit (OAG-MFCU), the U.S. Department of Health and Human Services – Office of the Inspector General (HHS-OIG), the Federal Bureau of Investigation (FBI), and the U.S. Postal Inspection Service (USPIS).  This case was prosecuted by Assistant U.S. Attorneys Nathaniel C. Kummerfeld and Frank Coan and Special Assistant U.S. Attorney Ken McGurk.

Any individuals with knowledge of these or other health care fraud violations are encouraged to contact the Department of Health and Human Services’ fraud hotline at 1-800-HHS-TIPS (447-8477)

TYLER, Texas – A 23-year-old Tyler, Texas man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

                Jose Maldonado Barragan was found guilty by a jury on Feb. 10, 2016, of conspiracy to possess with intent to distribute methamphetamine, aiding and abetting, possession with intent to distribute methamphetamine, possession of a firearm while illegally in the United States, and possession of a firearm during a drug trafficking crime.  Barragan was sentenced to 248 months in federal prison by U.S. District Judge Michael H. Schneider on Sep. 13, 2016. 

According to information presented in court, the Defendant supplied methamphetamine for several months in the spring of 2014.  An eight-ounce seizure occurred in Palestine, Texas on Mar. 31, 2014 which was later tied to the Defendant.  Additionally, a four-pound seizure occurred on May 12, 2014 in Tyler, Texas.  The Defendant’s fingerprints were later found on the packaging.  Barragan was indicted by a federal grand jury on Oct. 28, 2015.

Barragan was also ordered to forfeit $50,000 cash and a vehicle.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Texas Department of Public Safety and the Anderson County Sheriff’s Office and was prosecuted by Assistant U.S. Attorneys Mary Ann Cozby and Ryan Locker.

PLANO, Texas — A 53-year-old Sulphur Springs, Texas man has been found guilty of child exploitation charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

Fernando Sosa-Pintor was found guilty by a jury of two counts of distributing and one count of possessing child pornography.  The verdict was reached on Sep. 8, 2016 following a three-day trial before U.S. District Judge Marcia A. Crone.

According to the indictment, detectives from the Garland Police Department and the Longview Police Department conducted undercover investigations into peer-to-peer file sharing networks in August 2014.  Detectives testified at trial that they downloaded videos of child pornography from an IP address that was traced back to Tradicion Mexicana, a restaurant owned by Sosa-Pintor in Sulphur Springs.  Members of the Hopkins County Sheriff’s Office executed a search warrant at Tradicion Mexicana on Sep. 23, 2014, at which time they recovered a desktop computer that contained other child pornography videos.  Officers testified at trial that Sosa-Pintor spoke with them and admitted to using the peer-to-peer file sharing program to obtain child pornography.  During the trial, prosecutors introduced evidence from the undercover operations, Sosa-Pintor’s interview with law enforcement, and the contents of his desktop computer. 

                Under federal statutes, Sosa-Pintor faces up to 20 years in federal prison on each charge.  This is the maximum statutory sentence prescribed by Congress and 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 Hopkins County Sheriff’s Office and prosecuted by Assistant U.S. Attorneys Marisa Miller and Lesley Brooks.

BEAUMONT, Texas – A 47-year-old former Orange County Sheriff’s Detective has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

Chad Wayne Hogan, of Orange, Texas, pleaded guilty to an Information charging him with money laundering today before U.S.  Magistrate Judge Keith Giblin. 

           According to information presented in court, from March 2009 to August 2015, Hogan deposited approximately 4,302 checks written on bank accounts held by Beverly Place Apartments, Cedarwood Apartments, and Villa Main Apartments, all in the Port Arthur/Groves, Texas area.  Hogan deposited the checks in an account he had sole control over after receiving them from Shalana Murphy, the property manager at Beverly Place apartments.  After depositing the checks, Hogan would give Murphy a portion of the checks in cash and keep a portion for himself.  The checks were actually payable to tenants of the three apartment complexes and were written under the Housing and Urban Development’s (HUD) utility assistance program.  The utility assistance program provides qualifying persons a monthly check to help offset their utility costs.  However, many of the tenants at the three apartment complexes were not aware they were receiving these benefits.  On-site managers at the complexes, including Shalana Murphy, engaged in a scheme to sign tenants up for HUD utility assistance benefits, and then take the checks for themselves.  While Hogan was not involved directly with the scheme to defraud HUD, he deposited the fraudulently obtained checks an account he controlled and provided Murphy with cash, keeping a portion of the proceeds for himself.  Hogan was aware the checks he was depositing represented the proceeds of unlawful activity.   The United States is also seeking a monetary judgment of $187,706, from Hogan as this was his portion of the scheme.              

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

               This case was investigated by the U.S. Housing and Urban Development – Office of Inspector General and Homeland Security Investigations. This case is being prosecuted by Assistant U.S. Attorney Christopher T. Tortorice.

BEAUMONT, Texas – A 44-year-old Nuevo Laredo, Mexico man has been sentenced to federal prison for drug trafficking related violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today. 

Hugo Alberto Macias-Garcia pleaded guilty on May 23, 2016, to interstate transportation in aid of racketeering and was sentenced to 24 months in federal prison today by U.S. District Judge Ron Clark.  Garcia was also ordered to submit to forfeiture of approximately $47,000 cash.

According to information presented in court, on July 12, 2015, Garcia was stopped by patrol officers for traffic violations while traveling westbound on IH-10 in Beaumont. A search of the vehicle revealed approximately $52,000 is cash hidden inside a tool box.  The cash was separated into bundles and stored in plastic bags consistent with methods used in drug trafficking organizations.  Garcia was indicted by a federal grand jury in January 2016 and charged with drug trafficking violations. 

Garcia was ordered to be deported upon release from federal prison. 

            This case was investigated by the Beaumont Police Department and Homeland Security Investigations and was prosecuted by Assistant U.S. Attorney Robert L. Rawls.

SHERMAN, Texas — A 39-year-old former Hopkins County, Texas school teacher has been sentenced to federal prison for child exploitation violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

Lucas Hill pleaded guilty on Feb. 20, 2016, to coercion or enticement of a minor and was sentenced to 405 months in federal prison by U.S. District Judge Amos Mazzant on Aug. 19, 2016. 

According to information presented in court, in early 2015, an investigator in Louisiana received a complaint from a family who discovered that someone had used photographs of their family, and particularly photographs of their teenaged son, to create a Facebook account as “Aaron Cage.”  The investigation revealed the account user was accessing the account from Hill’s residence in Sulphur Springs, Texas.  At the time, Hill was a teacher with Cumby Independent School District.  It was determined that Hill created the fictitious Facebook page to pose as a teenage boy and from October 2013 through 2015, used the Facebook page to contact numerous minor females and persuaded them to engage in sexually explicit conduct, including producing images and videos of themselves engaged in sexual activity.  Hill was indicted by a federal grand jury on July 15, 2015.

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 U.S. Secret Service, Hopkins County Sheriff’s Office, Sulphur Springs Police Department and Hopkins County District Attorney’s Office and prosecuted by Assistant U.S. Attorney Marisa Miller.               

SHERMAN, Texas – A 45-year-old Frisco, Texas man has been sentenced to federal prison for disabled veteran related fraud in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

Sean Page was found guilty by a jury on Feb. 12, 2016, of theft of government property and two counts of aggravated identity theft.  Page was sentenced to 69 months in federal prison on Aug. 11, 2016 by U.S. District Judge Marcia A. Crone. 

           According to information presented in court, Page fraudulently obtained 14 federal service contracts by utilizing the stolen name and social security number of a service disabled veteran to create a fraudulent Service Disabled Veteran Owned Small Businesses (SDVOSB) for the purpose of soliciting and obtaining these service contracts.  The Department of Veteran’s Affairs and the Department of the Army funds federal contracting programs for SDVOSB.  The program provides exclusive business opportunities for veterans who were and are disabled as a result of their military service and sacrifices while serving in the United States Armed Forces. 

The contracts were valued at $2,722,870.  Of this amount, Page submitted fraudulent invoices and was paid $1,270,304.  Page was indicted by a federal grand jury on Dec. 9, 2015.

James Warner, Office of Inspector General, Special Agent in Charge, South Central Field Office stated, “We are pleased that the investigation resulted in the conviction of a person who abused federal government contracting set-asides for service-disabled veteran owned businesses.  Fraudulently using another veteran’s status, in this case the Defendant’s disabled father’s veteran status, to obtain disabled veteran set-aside contracts hurts all veterans with legitimate businesses who wish to properly obtain these contracts.”  General Carol Fortine Ochoa stated, “We will continue to work to uncover fraud schemes such as this on behalf of American taxpayers and legitimate veterans who own small businesses.”  

“Protecting Service Disabled Veteran Small Business Programs, which are funded by American taxpayers, and intended to benefit veterans with service disabled injuries incurred as a result of their sacrifices for this country, from those who commit fraudulent acts to steal from the program is and will remain a top priority for our office,” said U.S. Attorney Bales. “Those who steal and attempt to steal monies from these programs will be vigorously prosecuted.”

This case was investigated by the Department of Veterans Affairs, Office of the Inspector General, the Army Criminal Investigation Command, Major Procurement Fraud Unit, the General Services Administration, Office of Inspector General, the Social Security Administration, Office of the Inspector General, the Defense Criminal Investigative Service, and the Small Business Administration, Office of the Inspector General.   The case was prosecuted by the U.S. Attorney’s Office, Eastern District of Texas.

BEAUMONT, Texas – A 26-year-old Wimberly, Texas woman has been sentenced to federal prison for identity theft related violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

Samantha Kelly Bradshaw pleaded guilty on May 2, 2016 to identity theft by unlawful possession of a means of identification and was sentenced to 24 months in federal prison today by U.S. District Judge Marcia A. Crone. 

           According to information presented in court, on Jan. 9, 2016, a deputy with the Hardin County Sheriff’s Office was dispatched to the scene of a one-vehicle accident in Kountze, Texas where the vehicle was discovered to have been reported as stolen from Groves, Texas.  After the arrest of the driver, further investigation led to a residence on Manor Drive in Kountze where two other persons were arrested for drug offenses and one person was arrested for an outstanding warrant.  Bradshaw was located in a bedroom and initially arrested for failing to identify and later falsely identifying herself using an assumed name.  A search of the bedroom resulted in the location of over 50 pieces of identifying information including names, dates of birth, Social Security numbers, driver licenses, passports, visas, and bank account information of people from other parts of the state.  Two Texas identification cards were also located in the names of another person and Samantha Kelly Bradshaw.  The Bradshaw identification card had the photograph cut out and the identification card in the other name was fictitious.  A birth certificate and a Social Security card in the other name were also discovered.  Additionally, numerous debit cards obtained in various names were located, including some of the fictitious identification card and Samantha Bradshaw.  The person whose name was on the fictitious Texas identification card confirmed she was a victim of identity theft. 

            This case was investigated by the U.S. Department of Homeland Security Investigations and the Hardin County Sheriff’s Office and was prosecuted by Assistant U.S. Attorney Robert L. Rawls.

BEAUMONT, Texas – A 43-year-old Hankamer, Texas woman has been sentenced to federal prison for income tax violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

Holly D. Kirkwood pleaded guilty on Feb. 11, 2016 to filing a false income tax return and was sentenced to 30 months in federal prison today by U.S. District Judge Marcia A. Crone. Kirkwood was also ordered to pay restitution in the amount of $474,532 in back taxes. 

           According to information presented in court, beginning around January 2008 and continuing to 2011, Kirkwood was the office manager and bookkeeper for Rustbusters, a painting and sandblasting corporation, based in Humble, Texas.  As part of her job responsibilities Kirkwood submitted forms to Employers One Source Group (EOSG), an employee staff leasing and payroll company, for reimbursement of expenses incurred by employees of Rustbusters. EOSG prepared and issued reimbursement checks to employees for expenses incurred by the employees of Rustbusters. In 2008, Kirkwood began submitting reimbursement forms to EOSG for the purchase of sand and grit purportedly made by her and used by the company in its operations, when in fact no such purchases had been made. This fraudulent reimbursement scheme continued through early 2011during which she received numerous reimbursement checks totaling $567,332.00 in 2008, $713,474.00 in 2009, and $671,014.00 in 2010. Because of the large increase in Rustbuster’s business during peak oil drilling years the excess reimbursements were not discovered until a forensic audit was conducted by a CPA firm. Kirkwood failed to report on her individual income tax returns for 2008 -2010 the additional unauthorized reimbursements monies received during those years instead reporting only her normal W-2 wages.  Her tax returns were prepared in Orange, Texas. The additional tax due and owing is $249,766 in 2009, $219,971 in 2010, and $4,796 in 2011, totaling $474,532. 

                “The defendant stole hundreds of thousands of dollars from her employer and failed to report the proceeds on her tax return and she is now going to pay the price,” said Rick Goss, Special Agent in Charge, IRS-Criminal Investigation-Houston Field Office.  “Even stolen money is taxable and greed of this nature can’t go unpunished.” 

                This case was investigated by the Internal Revenue Service, Criminal Investigations Division and prosecuted by Assistant U.S. Attorney Robert L. Rawls.

TYLER, Texas — A 33-year-old former preacher at the Lake Highlands Baptist Church in Sulphur Springs, Texas has been sentenced for child exploitation offenses in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

Chad Calhoun, of Longview, Texas, was convicted by a federal jury on Dec. 10, 2015 for receiving and possessing child pornography and was sentenced to 135 months in federal prison by U.S. District Judge Michael H. Schneider on Aug. 3, 2016.  Upon his release from custody, Calhoun will serve a term of supervised release of 10 years and will be required to register as a sex offender.

According to the evidence introduced at trial, in June 2014, an investigator with the Hopkins County Sheriff’s Office observed an individual making child pornography available on a peer-to-peer file sharing program.  The computer user tracked back to Calhoun’s house in Sulphur Springs.  During trial, law enforcement introduced evidence showing that child pornography was made available for distribution on the peer-to-peer network from Calhoun’s residence and from the Lake Highlands Baptist Church, where he was the pastor, for more than a year prior to this investigation.  Members of law enforcement also testified about the forensic evidence located on a laptop seized from Calhoun, including hundreds of videos of child pornography that had been stored in various folders. 

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 (HSI) and the Hopkins County Sheriff’s Office and prosecuted by Assistant U.S. Attorneys Marisa Miller and Jim Noble.

TYLER, Texas - U.S. Attorney John M. Bales announced today that five individuals have been arrested following a lengthy investigation into drug trafficking in the Eastern District of Texas.

                On Aug. 4, 2016, a combined task force of federal, state and local law enforcement executed federal arrest and search warrants in Plano, Carrollton, Dallas and Tyler, Texas as a result of a joint investigation by the U.S. Drug Administration, Plano Police Department, Internal Revenue Service, Bureau of Alcohol, Tobacco, Firearms and Explosives and Smith County Sheriff’s Office.

The operation resulted in the arrest of five defendants named in a 13-count indictment returned by a federal grand jury on Aug. 3, 2016.  According to the indictment, from at least April 2013, the defendants, who are all related, conspired to distribute synthetic drugs at two retail establishments in the Eastern District of Texas:  Minute Stop/Valero Gas Station located at 11874 Hwy 64 West in Tyler, Texas and Ashes Smokes and Tattoos located at 1428 Avenue K in Plano, Texas.  Those arrested and named in the indictment are:

Saleem Jaffer Jiwani, 58, of Tyler; Adeel Uz Zaman Khan, 30, of Carrollton; Nadia Farishta, 53, of Dallas; Sharjeel Jeff Ali, 28, of Dallas; and
Nimrose Khan, 32, of Carrollton.

Over $250,000 in cash and in excess of 6,000 packages of synthetic drugs were recovered during today’s law enforcement operations.   

If convicted, the defendants face as much as 20 years in federal prison.

This case is being investigated by DEA, Plano Police Department, IRS, ATF, and the Smith County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Mary Ann Cozby.

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

PLANO, Texas – A 55-year-old Denton County, Texas, nurse, has been sentenced to federal prison for health care fraud violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales. 

Florence Kroma, a/k/a Florence Kamara, a/k/a Florence Koroma, a/k/a Florence Bangura, 55, of Denton, Texas, was found guilty by a jury of nine counts of health care fraud following a four-day trial before U.S. District Judge Marcia A. Crone in December, 2015.  She was sentenced today to 97 months in federal prison and ordered to pay restitution in the amount of $775,099.09 to Medicare.

 According to information presented in court, Kroma, a registered nurse, owned and operated Mt. Zion Home Health Agency in Denton, Texas.  From April 2008 to October 2013, Kroma carried out a scheme to defraud Medicare through the submission of false and fraudulent claims for skilled nursing services which were not provided and which were not authorized by the patients’ physicians.  At times, Kroma submitted claims for services which she allegedly provided when she was out of state.  At other times, Kroma submitted claims for services which she allegedly provided to patients who testified that they did not know her and had never heard of her company.  Kroma was indicted by a federal grand jury on June 11, 2015.

 The case was investigated by the U.S. Department of Health and Human Services – Office of the Inspector General (HHS-OIG), the Federal Bureau of Investigation (FBI) and the U.S. Department of State. 

Any individuals with knowledge of these or other health care fraud violations are encouraged to contact the Department of Health and Human Services’ fraud hotline at 1-800-HHS-TIPS (447-8477)

PLANO, Texas – A Dallas physician has been convicted of conspiracy to sell illegal prescriptions in the Eastern District of Texas, announced U.S. Attorney John M. Bales today. 

Habiboola Niamatali, 75, of Dallas, was found guilty by a jury of conspiracy to distribute Hydrocodone, Alprazolam, and Promethazine with Codeine outside the usual course of professional practice and without a legitimate medical purpose.  The jury reached its verdict following a weeklong trial before U.S. District Judge Marcia Crone.

According to information presented in court, Niamatali used his medical clinics in Garland and Lancaster to sell illegal prescriptions for cash.  The defendant attempted to cover up his scheme by ordering his staff to falsify medical records.  Niamatali was indicted by a federal grand jury on July 10, 2013.

Niamatali was immediately taken into custody following the jury’s verdict.  Under federal statutes, Niamatali faces up to 10 years in federal prison at sentencing.  The maximum statutory sentence prescribed by Congress and 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 was investigated by the U.S. Drug Enforcement Administration – Dallas Tactical Diversion Squad and the DeSoto Police Department.

SHERMAN, Texas — A 47-year-old former HEB principal has been sentenced for child exploitation in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

Oscar Figueroa, of Carrollton, Texas, was convicted by a federal jury on April 1, 2016 for attempting to coerce and enticement of minors and was sentenced to 120 months in federal prison today by U.S. District Judge Amos L Mazzant.  Figueroa was also ordered to pay fines and assessments totaling $17,600.  Upon his release from custody, Figueroa will serve a term of supervised release of 10 years and will be required to register as a sex offender.

According to the evidence introduced at trial, on July 7, 2015, law enforcement officers responded to a Craigslist advertisement posted by Figueroa, entitled “Dad sucking at AMC Stonebriar.”  The ad sought a young male with whom to engage in sexual activity at the AMC movie theatre located within the Stonebriar Centre, in Frisco, Texas. An undercover officer posing as a 16-year-old boy contacted Figueroa and began exchanging text messages.  After learning that the undercover was 16-years-old, Figueroa responded “Nice” and instructed the undercover officer to meet him at a particular place within the theatre.  Upon arrival, Frisco PD Officers encountered Figueroa, who directed an undercover officer to a bathroom for sexual activity.  During the trial, attorneys for the United States introduced Figueroa’s text messages with the undercover agent, his interview with law enforcement, approximately 120 Craigslist ads Figueroa posted seeking sexual activity, and the contents of his cellular phone.  Figueroa was indicted by a federal grand jury on July 15, 2015

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 (HSI) and the Frisco Police Department and prosecuted by Assistant U.S. Attorneys Marisa Miller and Jay Combs.      

BEAUMONT, Texas – A 44-year-old Houston woman has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

Nhung Tuyet Nguyen, also known as Sandy Nguyen, pleaded guilty to theft of government property today before U.S.  Magistrate Judge Zack Hawthorn. 

           According to information presented in court, from October 2007 to December 2015, Nguyen was employed by the Beverly Place Apartments in Groves, Texas as an assistant Manager.  As part of her job responsibilities, Nguyen assisted potential tenants in applying for U.S. housing and Urban Development (HUD) benefits for rental assistance and utility assistance.  The rental and utility assistance programs are designed to help low-income individuals offset housing rental and utility costs with funds provided by HUD.  In June 2007, Nguyen began applying for HUD rental assistance and utility assistance benefits without the tenants’ knowledge or consent.  As a result, HUD provided funds to Beverly Place Apartments to cover tenants’ monthly rental fees.  Nguyen required tenants, who were unaware HUD had already paid their monthly rent, to pay full market price for their apartments in cash or money orders.  Nguyen would then take the cash or money orders and use them for her personal benefit.  Nguyen enrolled at least five tenants in HUD rental and utility assistance programs without their knowledge.  As a result, Nguyen caused a total loss to HUD of $393,583.00.                

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

                This case was investigated by the U.S. Housing and Urban Development – Office of Inspector General and Homeland Security Investigations. This case is being prosecuted by Assistant U.S. Attorney Christopher T. Tortorice.

PLANO, Texas – PLANO, Texas – Ten North Texas companies and individuals agreed to pay the United States a total of $1.125 million to resolve alleged False Claims Act violations for causing false claims to be submitted to the U.S. Department of Health and Human Services (HHS) and its component agency the Centers for Medicare and Medicaid Services (CMS), announced U.S. Attorney John M. Bales.  The companies and individuals paying the United States under the settlement are:

• Irving Holdings, Inc. (together with its predecessor companies Big Tex Taxi Corporation, Terminal Taxi Corporation, Choice Cab, Inc., Yellow Checker Cab of Dallas, Inc., and Yellow Checker Cab of Fort Worth, Inc.)
• JetTaxi, Inc.
• Dallas Taxi, LLC
• US Cab, LLC
• Terminal Taxi Corporation of Irving
• Classic Shuttle Acquisition Corporation, Inc. d/b/a Go Yellow Checker Shuttle
• Dallas Car Leasing, LLC
• Jackie Bewley
• Jeffrey Finkel
• Elizabeth George

The settlement resolves a portion of a lawsuit filed under the qui tam provisions of the False Claims Act by Robert Spence, Mike Jones, and Cheryl Jones.  The Act permits private citizens (called “relators”) with knowledge of fraud against the Government to bring a lawsuit on behalf of the United States and to share in any recovery.  Under the civil settlement announced today, the relators will receive $202,500 out of the United States’ recovery.  The lawsuit remains pending in the Eastern District of Texas and is captioned United States of America ex rel. Robert Spence, Mike Jones, and Cheryl Jones v. Irving Holdings, Inc., et al., Case Number 4:12-CV-487.  The following companies and individuals are also named in the action but are not parties to the settlement announced today:

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• North Texas Opportunity Fund, L.P.
• NTOF Capital Partners, LP
• North Texas Opportunity Fund Capital Partners, LP
• North Texas Investment Advisors, LLC
• Lone Star Investment Advisors, LLC
• William Tauscher
• Arthur Hollingsworth
• Greg Campbell
• Luke Sweetser

The relators were employees of Irving Holdings, Inc. d/b/a Yellow Cab (“Irving Holdings”), one of the largest taxicab companies in the United States.  The relators claim in their lawsuit that Irving Holdings and many related or affiliated entities, stockholders, and employees failed to comply with rules and regulations governing Medicaid transportation services provided by Irving Holdings to Texas Medicaid recipients, resulting in false claims being submitted to Texas Medicaid and CMS.

The United States’ contended that certain Defendants misrepresented Irving Holdings’ compliance with the transportation broker requirements contained in 42 C.F.R. § 440.170.  Specifically, the United States alleged that Irving Holdings and Jeffrey Finkel submitted a false affidavit to the State of Texas knowing the affidavit would then be provided to CMS.  The United States claimed that the false affidavit caused CMS to pay inflated amounts to Texas Medicaid.  The settling Defendants have expressly denied the United States’ contentions.

This settlement demonstrates the United States’ continued commitment to pursuing health care providers who misrepresent their compliance with Medicare and Medicaid regulations.  Moreover, the settlement illustrates that the Department of Justice will pursue companies as well as individuals whose actions cause the submission of false claims—even if someone else receives the money. 

“The public is besieged by fraud, guile, and recklessness every single day,” said U.S. Attorney Bales.  “Our office will not tolerate the mistreatment of taxpayer money, whether by corporations or individuals.”

This case was investigated by the U.S. Attorney’s Office for the Eastern District of Texas, the Texas Attorney General’s Office, and the Office of Inspector General of the Department of Health and Human Services (HHS-OIG).  The settlement was negotiated by Assistant U.S. Attorneys Joshua Russ and James Gillingham.  The claims resolved by the settlement and the claims alleged by the relators are allegations only; there has been no determination of liability.

BEAUMONT, Texas – A 23-year-old Beaumont, Texas man has been arrested for federal violations in the Eastern District of Texas announced U.S. Attorney John M. Bales.              

Lance Giovanni Fontenot was arrested on Wednesday, June 15, 2016 pursuant to a criminal complaint issued by the U.S. District Court charging him with maliciously conveying false information about explosive materials.  Fontenot appeared in federal court this afternoon on the charges.

According to information presented in court, on June 15, 2016, the ExxonMobil refinery located in Beaumont, Texas received a call from an individual claiming explosive devices had been placed at the refinery and were set to explode.  An investigation led authorities to Fontenot.  Fontenot was questioned by federal agents and admitted to placing the telephone call. 

If convicted, Fontenot faces up 10 years in federal prison and a fine of up to $250,000.

This case is being investigated by the Joint Terrorism Task Force including agents with the Federal Bureau of Investigation, the Beaumont Police Department, the Bureau of Alcohol Tobacco and Firearms, the Jefferson County Sheriff’s Office, the U.S. Coast Guard Investigative Services, and the Port Arthur Police Department.  This case is being prosecuted by Assistant U.S. Attorney Lesley Woods.

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

TYLER, Texas – A 53-year-old former bank vice president and trust officer has been sentenced for federal violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

Carol D. Rushton, of Tyler, Texas, pleaded guilty on Dec. 17, 2015, to unlawfully structuring transactions and was sentenced to 36 months of federal probation today by U.S. District Judge Michael H. Schneider.  Rushton was also ordered to pay a $30,000 fine and must perform 108 hours of community service as well as notify all of her current and future clients of her conviction.

 According to information presented in court, from Nov. 3, 2010 to Aug. 15, 2012, Rushton, while employed at Regions Bank in Tyler, Texas, caused nine separate transactions of $10,000 or less, totaling $70,500 for the purpose of evading federal reporting requirements.  Rushton admitted that she was aware that financial institutions are responsible for filing a Currency Transaction Report (CTR) with the Internal Revenue Service when a customer conducts a currency transaction in excess of $10,000. 

The case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Jim Noble.

SHERMAN, Texas – A 37-year-old company systems administrator has been convicted of federal violations within the Computer Fraud and Abuse Act in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

Michael Thomas, of Lewisville, Texas, was found guilty by a jury on June 8, 2016, of knowingly transmitting programs, information, codes, or commands that intentionally caused damage to his employer’s computer system, that he did not have authorization to cause the damage, and that those damages incurred losses to the employer in excess of $5,000.  The verdict came following a three-day trial before U.S. District Judge Amos L. Mazzant, III.

According to the indictment and evidence presented at trial, on Dec. 2-5, 2011, Thomas, while employed as the Information Technology Operations Manager for ClickMotive in Plano, Texas, became upset about a business decision the company made.  In retaliation, Thomas granted himself access to the company executives’ email accounts in order to search through emails and forward them to an external email account he created for that purpose.  Over the weekend, Thomas also tampered with the company paging system by entering false contact information for various company executives, ensuring that any automatically-generated alerts indicating system problems would not be received.  Thomas also removed company employees and executives from email distribution groups created for the benefit of its customers, who were large automotive companies and dealerships.  This ensured that customers’ request for support would similarly go unnoticed.

Thomas deleted virtual machines that were currently in active use and being used to store and perform important backup functions, deleted 615 files of backup history which were not able to be recovered, and also deleted jobs for future backups across various environments in the network.  Those deletions were performed contrary to established practices and procedures routinely followed by the company.  Thomas also deleted several internal “wiki” pages that employees routinely accessed and relied upon to perform their jobs.  Furthermore, Thomas manually changed the setting for an authentication service that eventually led to the inability of employees to work remotely through a Virtual Private Network.  Thomas left his resignation on Sunday, Dec. 5, 2011, before his nefarious activities were discovered.  Company IT personnel and expert witnesses testified that Thomas’ activities, taken as a whole, were not consistent with normal trouble-shooting and maintenance.

Thomas’ friend and former colleague testified that in the days following the events in question, Thomas admitted to have “tinkered” with the system and specifically to deleting backups and related files, tampering with the door monitoring system, absconding with passwords, and also stating that he thought he broke the law.  When later questioned about the incident, Thomas similarly admitted to FBI Agents to deleting wiki pages and spying on company executives’ emails, also saying he didn’t want the job to be easier for the next person.  On Aug. 12, 2013, Thomas abruptly resigned from a well-paying job and purchased a plane ticket to Brazil, departing that same day, after being notified that the government intended to formally charge the defendant on Aug. 14, 2013.  He did not return to the United States until April 20, 2016.

ClickMotive’s co-founder and Chief Technology Officer extensively testified as to the importance of the data that the defendant tampered with and destroyed which not only affected the company’s ability to access certain data but also instilled a sense of fear that persisted within the company for months.  The witness explained that no one had permission to delete or impair data that is valuable to the company.  The cost to investigate and remediate the problems created by Thomas was more than $100,000.  Thomas was indicted by a federal grand jury on Sep. 11, 2013 and charged with violating Title 18 of the United States Code, Section 1030(a)(5)(A) and (c)(4)(B), within the Computer Fraud and Abuse Act.

“The jury’s verdict in this case sends an important message to IT professionals everywhere:  an employee in the defendant’s position holds the proverbial keys to the kingdom and with that power comes great responsibility,” said U.S. Attorney Bales.  “Intentionally causing damage to a computer system without authorization is a criminal act that can and will be prosecuted.”

Damage is defined by the statute as “any impairment to the integrity or availability of data, a program, a system, or information.”

Thomas faces up to 10 years in federal prison at sentencing.  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 was investigated by the Federal Bureau of Investigation and prosecuted by the U.S. Attorney’s Office for the Eastern District of Texas in Plano, Texas.

BEAUMONT, Texas – A former Beaumont Independent School District (BISD) Assistant Superintendent has been sentenced for federal violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

Patricia Adams Lambert, 62, of Beaumont, pleaded guilty on Dec. 28, 2015, to theft concerning programs receiving federal funds and conspiracy to submit false statements concerning standardized test scores and was sentenced to 40 months in federal prison today by U.S. District Judge Thad Heartfield.  Lambert was immediately taken into custody by the U.S. Marshals Service.

Also sentenced today was Victoria Gauthier Steward, 31, of Lake Charles, LA.  Steward pleaded guilty on Dec. 23, 2015 to conspiracy to make false statements, related to the manipulation of BISD test scores and was sentenced to three years of federal probation.

            According to information presented in court, Lambert was hired by BISD on June 13, 2002, as a teacher, and on Aug. 28, 2002, she was promoted to Assistant Principal at Vincent Middle School.   On July 15, 2004, Lambert was promoted to Principal and assigned to French Middle School, and on July 1, 2006, she was assigned to Central Medical Magnet High School (“CMMHS” or “Central”) as Principal.  As Principal of Central, Lambert was responsible for oversight of the campus; managing personnel; ensuring proper reporting of grades, testing, and attendance to BISD administration; and financial oversight for certain aspects of the campus.  On May 17, 2012, Lambert was promoted to Assistant Superintendent. 

            States are mandated by the No Child Left Behind Act (NCLBA) of 2001 to implement academic assessment tests in order to receive federal funding under the NCLBA. The NCLBA requires the Texas Education Agency to develop, implement, and regulate the student assessment tests.   In Texas, public school students are required to take end-of-year assessment tests at particular grade levels.  Students must pass these tests in order to move on to the next grade level or graduate.  The Texas Education Agency (TEA) requires that campus principals and test administrators sign “Oaths of Test Security and Test Confidentiality,” ensuring full compliance concerning test security and confidentiality.  Through words and actions, Lambert created a culture at CMMHS among the faculty and staff where cheating on standardized tests was accepted.  Lambert, either directly or indirectly, encouraged teachers and staff to manipulate students’ standardized test scores or had knowledge that cheating occurred.  Despite the fact that she knew that cheating was occurring on standardized tests, she signed and submitted Oaths of Test Security, including one in January of 2010, as alleged in the indictment, where she falsely affirmed all the requirements governing standardized test security were met.  The government could prove, through first-hand witnesses, that teachers would aggregate large numbers of tests and then erase and change incorrect answers to correct answers after students turned their tests; teachers would give students answers while they were taking the tests; and that test manipulation occurred on a regular basis from 2007-2012.  The Texas Education Agency (TEA) is mandated by the US Department of Education to administer and regulate standardized testing, including maintaining test security.  As part of its test security measures, TEA requires that teachers abide by all test security regulations and sign Oaths of Test Security.  These test scores are then communicated to the US Department of Education, who relies on the scores, among other metrics, in determining the appropriate disbursement of federal education funds.  The falsified oaths were capable of misleading TEA or the US Department of Education.

            In October 2007, Lambert took over control of the CMMHS “All Sports” Booster Club from the parent/volunteers who previously ran the Booster Club.  From that point forward, Lambert had access to Booster Club funds by way of the Booster Club checking account.  From 2007 until 2013 Lambert made purchases of personal items, not related to school activities, by using Booster Club checks and the Booster Club debit card.  During this same time period, Lambert wrote and signed Booster Club checks fraudulently made out to herself, her relatives, and “cash,” and deposited those checks into her own personal bank account, knowing she lacked the proper authority to do so.

                       In addition, during the relevant time period in the indictment, Lambert also had access to the CMMHS Student Activity funds account.  From 2007 through 2013 Lambert purchased items, some of which were for her personal use or the use of her family members, and other items not related to school activities, by writing checks on the CMMHS Student Activity funds checking account.  During this same time period, Lambert wrote and signed Student Activity fund checks fraudulently made out to herself, and others and deposited those checks into her own personal bank account, or those of her relatives, knowing full well that she had no authority to do so.

            Additionally, from 2007 through 2013, Lambert employed her son, Brian Collins, as the primary “printer” for various items including, but not limited, to pamphlets, flyers, banners,  football programs, graduation programs, and instructional materials, and helped secure his payment for these items from Booster Club, Student Activity fund, and the BISD general fund, knowing full well that Collins, rather than doing any actual printing work, was securing the services of an actual printing business, and marking up the price for that work anywhere from 25%-215%. 

            During the years Lambert was principal at CMMHS, the school generated significant amounts of cash through various means.  For example, when students were found with cell phones on campus or lost their student ID cards, they were required to pay a monetary penalty, usually approximately $10.  Lambert also established an on-campus snack sales area, located near the cafeteria, where students could purchase candy and chips for approximately one dollar each.  This money was aggregated in a file cabinet drawer in the bookkeeper’s office, and Lambert maintained access to this area.  Between 2007 and 2012, Lambert made regular and substantial cash deposits into her personal bank accounts, totaling approximately $171,525.

             From Jan. 1, 2010 through Dec. 31, 2010, Lambert, while an employee of BISD stole, embezzled, obtained by fraud, or otherwise without authority knowingly converted to the use of another property in aggregate amounts adding up to $5,000 or more, from BISD in the manner stated in the paragraphs above.  During 2010, BISD received in excess of $10,000 in federal funds through various federal grants and programs. 

           This case was prosecuted as part of the Joint Task Force established in March 2014 between the U.S. Attorney’s Office for the Eastern District of Texas and the Jefferson County District Attorney’s Office to investigate and prosecute major crimes – more specifically, violent crime and crimes related to the abuse of public trust in Jefferson County, Texas.

If you have any information related to this matter, please call the Federal Bureau of Investigation at 409-832-8571.

This investigation was conducted by the Federal Bureau of Investigation, the Department of Education Office of Inspector General, the Texas Education Agency, the Jefferson County District Attorney’s Office and the Beaumont Police Department.  This case was prosecuted by Assistant U.S. Attorneys Joseph R. Batte, Christopher T. Tortorice, Bob Wells and Bradley Visosky.

MARSHALL, Texas – A 60-year-old Kennard, Texas man has been sentenced to prison for federal environmental violations, announced U.S. Attorney John M. Bales today.

                Rodney K. Beshears pleaded guilty on Feb. 9, 2016, to violating the work practice standards of the Clean Air Act and was sentenced to 12 months and one day in federal prison today by U.S. District Judge Rodney Gilstrap.

            According to information presented in court, Beshears admitted that in October of 2011, he and his employees began excavating and removing a pipeline in northeast Texas.  On Dec. 16, 2011, an inspector with the Texas Department of State Health Services conducted a site inspection where Beshears was removing the pipeline near Diana, Texas, and informed Beshears that the pipeline had a coating of asbestos.  On Dec. 21, 2011, Beshears received training on asbestos removal practices which included instructions on the proper handling of asbestos material required under the work practice standards of the National Emission Standards for Hazardous Air Pollutants or “NESHAP” rules for asbestos when excavating and removing pipe with a coating of asbestos.  On Jan. 13, 2012, the Texas Department of State Health Services inspected another site where Beshears was excavating and removing the pipeline just outside of Ore City, Texas and again informed Beshears that the pipe had a coating of asbestos material. 

Beshears’ removal of the pipeline continued through March, 2012, during which time, Beshears removed, and caused others to remove, several thousand feet of pipeline which contained regulated asbestos containing material, between Diana and Ore City, Texas.  The excavation, cutting and removal of the pipeline, as directed by Beshears, included no wetting of the asbestos material that coated the pipeline as Beshears had been instructed during the training.  The asbestos material was crumbled and pulverized by hitting the pipe coating with a hammer to knock it off the pipe to expose the pipe so it could be cut into pieces; asbestos was crumbled and pulverized by dragging the pipe segments across the ground; and asbestos was not disposed of at approved disposal facilities.  Beshears was indicted by a federal grand jury on Sep. 3, 2014.  

"The health dangers associated with asbestos are well known and its safe removal must be handled according to the law,” said Bill Stevens, Acting Assistant Agent-in-Charge of EPA’s Criminal Investigation Division Dallas Area Office.  “The defendant knew the law, yet knowingly and repeatedly violated it by directing his employees to illegally remove pipeline coated with asbestos.  As an employer, the defendant was obligated to uphold environmental laws that safeguard the health of his workers and the community at large.  This plea demonstrates that companies and their owners who callously place the American people at risk will be held accountable for their actions.”

                This case was investigated by the EPA’s Criminal Investigation Division in Dallas, Texas, the TCEQ’s Criminal Investigation Division, and the Texas Department of Parks and Wildlife, and prosecuted by Assistant U.S. Attorney Jim Noble. 

PLANO, Texas – A 39-year-old Waxahachie, Texas man has been sentenced to federal prison for crimes committed in the Eastern District of Texas, announced U.S. Attorney John M. Bales today. 

Joshua Mark Ford was charged in an 8 count indictment by a federal grand jury for narcotics and firearms violations.  Ford was convicted at trial of all 8 counts in January 2016.  Ford was sentenced to 115 months for the narcotics offenses and 30 years on the firearms offenses that will run consecutively.  The Honorable U.S. District Judge Marcia A. Crone pronounced the sentence earlier today.         

          According to information presented at trial, on November 23, 2012, Ford was stopped by Plano Police for a traffic offense.  During the course of the stop, officers found a multitude of narcotics including methamphetamine and 2,150 grams of GHB (also known as the date rape drug).  Ford was also in possession of 2 firearms at the time and had been previously convicted of a felony offense, which also involved GHB and firearms.

            On June 26, 2013, Ford was arrested while attempting to sell 2 gallons of GHB.  During the take down, Ford pulled a firearm from his waistband and attempted to shoot a police officer.  Ford was shot during the incident.

            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 Plano Police Department, the Denton Police Department, and prosecuted by Assistant U.S. Attorneys Tracey Batson and Ernest Gonzales.

BEAUMONT, Texas – A 22-year-old Newton, Texas man has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.   

Michael Dwayne Byerly pleaded guilty to bank robbery on May 11, 2016 before U.S. District Judge Thad Heartfield.

According to information presented in court, on June 25, 2014, Byerly, along with co-defendants Michael Xavier Odarius Clark and Keith Collins, Jr. attempted to rob the Sabine State Bank in Burkeville, Texas.  On at least two occasions prior to the robbery, the defendant and co-defendants, Clark and Collins, drove to the bank to become more familiar with it and the habits of the employees.  They became aware that the manager of the bank, left at approximately the same time every day, and locked up the building using her set of keys before departing.  On June 25, 2014, Collins drove Byerly and Clark to the bank and dropped them off for the purpose of committing the robbery.  Byerly went inside the bank while Clark stayed outside.  Upon entry into the bank, Byerly pointed a gun at the manager and demanded that she open the bank's safe.  The manager knew that it would require two keys to access the cash, and claimed that she was part of the janitorial staff and that she was unable to comply.  Byerly, knowing this to be untrue, attempted to grab her keys from her and during the ensuing scuffle over the keys, Byerly produced a knife and stabbed the bank manager several times.  She was taken to the hospital and survived the attack.  A federal grand jury returned an indictment on Aug. 6, 2014.

Although Byerly has agreed to a term of 25 years in federal prison, 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.  Clark and Collins have both previously pleaded guilty to bank robbery and are also awaiting sentencing. 

                This case is being investigated by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Newton County Sheriff’s Office, the Newton Police Department and the Jasper County Sheriff’s Office and is being prosecuted by Assistant U.S. Attorneys Christopher Tortorice and Chris Rapp.

BEAUMONT, Texas - U.S. Attorney John M. Bales announced today that 11 Jefferson County men are in custody following a lengthy investigation into drug trafficking in the Eastern District of Texas.

                On May 6, 2016, a combined task force of federal, state and local law enforcement agencies began executing federal arrest warrants for defendants indicted following a ten month investigation into the distribution of crack cocaine in Beaumont, Texas.

               A federal grand jury returned a four-count indictment on May 4, 2016 charging 13 individuals with federal drug and firearms violations.  Of those, five defendants were arrested on May 6th and will be making initial appearances in court this week.  Those arrested are:

               Ashton Devon Randolph, 20;                Christopher Dewayne Ooten, 38;                Clifton Ray Freeman, 26;                George Lewis, 58; and
               Kody Dwayne Ardoin, 21, all of Beaumont, Texas.

               Of the 13 individuals indicted on May 4th, six were already in custody and are as follows:

               Kerry Arsenio Ardoin, 25;                Kristopher George Ardoin, 29;                Michael Eugene Ardoin, 29;                Patrick Alan Jackson, 27;                Seth Deandre Turner, 27; and
               Terrance Ardoin, 31, all of Beaumont, Texas.

               The remaining two defendants are being sought by law enforcement at this time. 

               According to the indictment, for over a decade the Ardoin family and others are alleged to have openly distributed crack cocaine from their home at 1107 Avenue A in Beaumont.

                “The ‘crack house’ operated by and for these defendants is just what you might expect – a vortex of misery and lost dreams,” said U.S. Attorney Bales.  “The investigators working on this case have done an excellent job in building the necessary proof to hold the named defendants accountable for the damage that they have done to the community and to the sad and desperate customers who purchased the crack.  We look forward to presenting the evidence in a court of law.”

                If convicted of the drug conspiracy charges, the defendants face a minimum of 10 years and up to life in federal prison.  If convicted of the firearms charges, the defendants face up to 20 years in federal prison.  If convicted of the drug house charge, those defendants face up to 20 years in federal prison. 

               This case is being investigated by the U.S. Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Beaumont Police Department.  The U.S. Marshals Service also assisted in today’s law enforcement activities.  This case is being prosecuted by Assistant U.S. Attorney Lesley A. Woods. 

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

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SHERMAN, Texas –  A 29-year-old Granbury, Texas man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales  today.

            John Christopher Esparza pleaded guilty on Jan. 5, 2016, to conspiracy to distribute and possession with intent to distribute oxycodone and was sentenced to 72 months in federal prison on May 6, 2016 by U.S. District Judge Marcia Crone.

           According to information presented in court, from November 2012 to September 2015, Esparza was the pharmacist in charge of Trinity Pharmacy on Rosemeade Parkway in Carrollton, Texas.  During this time, he illegally sold large quantities of oxycodone to another individual.  It was also revealed during the investigation that a review of the pharmacy’s inventory records suggested a large amount of oxycodone with a street value of approximately $2.9 million was unaccounted for.   Esparza was indicted by a federal grand jury on Sep. 10, 2015

           This case was investigated by the Drug Enforcement Administration – Dallas Field Division Tactical Diversion Squad, the Texas Department of Public Safety, the Texas Board of Pharmacy, and the McKinney Police Department.  This case was prosecuted by Assistant U.S. Attorneys in the Eastern District of Texas.     

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SHERMAN, Texas – U.S. Attorney John M. Bales announced today that three businessmen have been indicted and charged with federal violations in the Eastern District of Texas.

               Daniel C. Bomar, 36, James B. Wright, 55, both of Ocean Springs, MS, and Brett T. Immel, 35, of Chicago, were indicted by a federal grand jury on Apr. 14, 2016, and charged with conspiracy to commit bank fraud and conspiracy to commit money laundering. 

               According to the indictment, from 2010 to 2012, the defendants are alleged to have conspired to defraud and obtain money from Prime Lending, a mortgage lending company in Dallas, and from Federal Savings Bank, a mortgage lending company in Overland Park, Kansas.  Both companies are insured by the Federal Deposit Insurance Corporation (FDIC).  

               Wright was a title attorney who handled real estate closing transactions, and Bomar worked for his as an escrow officer.  Immel was a partner in a business called Hanover Companies, which located investors to purchase homes from builders.  Immel, on behalf of Hanover Companies, formed agreements and executed contracts with home builders to locate buyers for properties in exchange for a fee, known as a receivable fee.  Immel solicited buyers to purchase homes from the builders and then directed those buyers to obtain mortgage loans from Prime Lending or Federal Savings Bank.

               Immel specifically directed the buyers to Wright and Bomar to close the loans, and Immel provided Wright and Bomar with sales contracts executed by the sellers and buyers and the receivable fee contracts executed by the seller and Hanover.  The receivables fee contracts directed the sellers to pay Hanover for providing buyers for the properties.  However, Wright, Bomar, and Immel prevented Prime Lending or Federal Savings Bank from receiving any documentation that disclosed Hanover’s receivable fees from the sellers.

               For each loan closing, Bomar and Wright created a HUD-1 Settlement Statement for the seller which detailed the receivable fee the seller was making to Hanover.   However, Immel directed Bomar and Wright to create a separate HUD-1 Settlement Statement which omitted the receivable fee from the seller’s proceeds to Hanover, and instead showed the seller making more profit on the property than the seller actually received.  Bomar and Wright provided this false HUD-1 Settlement Statement to Prime Lending and Federal Savings Bank in order to receive inflated loan proceeds based on the falsely increased purchase price, and the amount of loans funds the buyer needed to pay for the purchase of the home.  After each loan was funded, Bomar and Wright paid a kickback to Immel through Hanover Companies.

               All mortgage loans named in the indictment were purchased and secured by the Federal National Mortgage Association (Fannie Mae).

               This case is currently set for trial on June 3, 2016 before U.S. District Judge Amos L. Mazzant, III.  If convicted of the charges, each defendant faces up to 30 years in federal prison for the bank fraud count and up to 10 years for the money laundering count.

               This case is being investigated by the Federal Housing Finance Agency – Office of Inspector General and the Internal Revenue Service and prosecuted by Assistant U.S. Attorney Camelia Lopez.

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.

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BEAUMONT, Texas – Three individuals, including two federal inmates, have been indicted in connection with an escape from a Federal Correctional Complex in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

Todd Allen Hammer, 40, and Jason Wesley Tate, 44, both federal inmates housed in Beaumont, Texas, and Lorna Leslie, 55, of Sherman, Texas, were indicted by a federal grand jury on May 4, 2016, and charged with escaping from federal custody and conspiracy to escape from federal custody.

According to the indictment and information presented to the grand jury, on Apr. 17, 2012, Hammer was convicted of drug trafficking and firearms violations in the Sherman Division of the Eastern District of Texas and was serving his sentence at the Federal Prison Camp located at the Federal Correctional Complex in Beaumont, Texas.  On July 7, 2015, Tate was convicted of drug trafficking violations in the Western District of Texas and was also serving his sentence at the Camp.  On Apr. 9, 2016, Hammer and Tate are alleged to have escaped from the facility with the assistance of Leslie, Hammer’s girlfriend.  On Apr. 15, 2016, all three were captured by the U.S. Marshals Service in Dallas, Texas. 

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

This case is being investigated by the Federal Bureau of Prisons and the U.S. Marshals Service and prosecuted by Assistant U.S. Attorney John A. Craft.

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

The Justice Department today announced that the city of Beaumont, Texas, has agreed to pay $475,000 and change its zoning and land use practices to resolve a lawsuit alleging that it discriminated against persons with intellectual or developmental disabilities who sought to live in small group homes in the city’s residential neighborhoods.  The consent decree must still be approved by the U.S. District Court for the Eastern District of Texas.

The lawsuit, filed on May 26, 2015, alleged that the city violated the Fair Housing Act and the Americans with Disabilities Act when it imposed a one-half mile spacing rule that prohibited many small group homes from operating in Beaumont.  The suit further sought to prohibit the city from imposing fire code requirements that exceeded those imposed by the state of Texas as part of its certification and funding of such homes.  These restrictions prohibited numerous persons with intellectual or developmental disabilities from living in Beaumont and resulted in the institutionalization in a nursing home of a woman who was forced to move out of her home.  Although the city alleged that its restrictions were justified by a Texas statute, the state of Texas later clarified in a statement it submitted to the court during the litigation that neither the spacing requirement nor the heightened fire code requirements were required by Texas law.   

Under the terms of the consent decree, the city will allow small group homes to operate in any residential district and will not subject such homes to fire code requirements that exceed the state’s requirements for certification of such homes.  The city will also pay $435,000 in monetary damages to 11 individuals with disabilities, their family members and companion care providers who were subject to the city’s discriminatory code enforcement practices.  The city will also pay $15,000 to the United States as a civil penalty and $25,000 to Disability Rights Texas, the organization that represents the individuals who filed the U.S. Department of Housing and Urban Development (HUD) complaints and intervened in the United States’ lawsuit.  Beaumont will take other remedial measures, including implementing a comprehensive reasonable accommodation policy, requiring its officials to attend fair housing training and appointing a fair housing compliance officer. 

“Persons with disabilities have the same right to live in and enjoy their communities as all other families do throughout our nation,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division.  “The Justice Department will continue to eliminate discriminatory barriers that impede these individuals from doing so.”

“I applaud the parties for reaching this common-sense, fair agreement,” said U.S. Attorney John M. Bales of the Eastern District of Texas.  “Beaumont is a great city in which to live and the prior restrictions now being set aside were inconsistent with that greatness.  Now everyone can reside where they wish in an environment that is best for their lives.”

“Group homes provide a critical source of housing for persons with disabilities and their availability shouldn’t be limited by discriminatory practices,” said Gustavo Velasquez, HUD Assistant Secretary for Fair Housing and Equal Opportunity.  “Today’s settlement reaffirms HUD and the Justice Department’s commitment to ensuring that jurisdictions meet their obligation to adhere to the nation’s fair housing laws.”

The lawsuit arose as a result of complaints filed with HUD by persons with intellectual or developmental disabilities whose homes were closed and were threatened with closure under the city’s challenged housing restrictions.  After conducting an investigation, HUD referred the matter to the Justice Department.  The individuals who had filed complaints with HUD later intervened in the United States’ lawsuit.  Today’s settlement resolves their lawsuit as well.

The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status.  More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.  Persons who believe that they have experienced unlawful housing discrimination may contact the Justice Department at 1-800-896-7743 or by e-mail at fairhousing@usdoj.gov.   

Beaumont Consent Decree

BEAUMONT, Texas – A 38-year-old federal inmate has been indicted for escaping from a Federal Correctional Complex in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

James Ortega, of McKinney, Texas, was indicted by a federal grand jury on Apr. 6, 2016, and charged with escaping from federal custody.  Ortega made an initial appearance and was arraigned before U.S. Magistrate Judge Zachary J. Hawthorn on May 3, 2016.

According to the indictment and information presented to the grand jury, Ortega was convicted of drug trafficking violations and was serving his sentence at the Federal Prison Camp located at the Federal Correctional Complex in Beaumont, Texas.  On Feb. 27, 2016, Ortega is alleged to have escaped from the facility.  On Feb. 29, 2016, Ortega voluntarily surrendered to authorities at the Federal Correctional Institution in Seagoville, Texas. 

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

This case is being investigated by the Federal Bureau of Prisons and the U.S. Marshals Service and prosecuted by Special Assistant U.S. Attorney Christina V. Hauck.

An 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 64 year old former insurance agent was sentenced to serve 36 months in federal prison for wire fraud and money laundering announced U.S. Attorney John M. Bales today.

           Robert Hahn, a former Tyler, Texas insurance agent entered a guilty plea on November 19, 2015 to charges of wire fraud and money laundering.  At that hearing Hahn admitted that he started a fraudulent scheme, commonly known as a “Ponzi scheme” before January 2007 and he continued it until he was confronted by F.B.I. and I.R.S. agents on February 4, 2015.  Hahn admitted he falsely represented to approximately 100 different individuals that he was spearheading fund raising for a group of doctors, in Tyler, Texas, who were raising capital for debt retirement, construction of, or improvements to, health care facilities, and medical equipment purchases.  Hahn told potential “investors” that the group of doctors he represented would pay an annual interest rate of 20% on their loans or investments.  Hahn then collected funds from the “investors” and deposited them into his insurance business or personal checking accounts.  Hahn would periodically make “interest” payments, in cash, to investors, representing a 20% return on the fictitious loans or investments, utilizing funds he had derived from earlier investors.  Upon request, Hahn would return principle loan or investment funds to the investors in the form of a check drawn on his insurance or personal checking accounts, using funds he had received from other investors.  Hahn admitted that there never was a group of doctors raising capital.  Hahn admitted he simply made up this story to obtain and maintain funds for his personal use.
      As a result of the scheme, Hahn collected approximately $5,479,600.00 from ninety-four (94) individuals.  In furtherance of the scheme, during the relevant time period, Hahn returned or distributed approximately $4,072,470.00, in proceeds from the fraud scheme to some of the individuals in the form of returned “principle” and “interest” or “earnings”.  Thirty-one (31) of these individuals enjoyed a combined total, net gain of $1,407,130.00; while sixty-six (66) of them suffered a combined total net loss of $1,757,280.00.

     Hahn cooperated fully with investigators from the onset of the investigation and voluntarily surrendered all of his accounting records pertaining to the scheme.  As part of his plea agreement with the government, Hahn agreed to surrender the net proceeds from the sale of his home and the sale of his insurance business to the court for restitution to his victims.    In addition, since the investigation began in February, Hahn has deposited 20% of his monthly gross income into an account designated for victim restitution.  At the time of sentencing the balance in that account had reached approximately $16,000.00.  Hahn also agreed to assign the proceeds from the sale of 80,500 shares of stock in a privately owned corporation to the court for distribution to the victims; however, at this point in time there is no commercial market for those shares.

      The government initiated collection proceedings against the fraud scheme proceeds paid to investors who profited from their “investments” with Hahn.  At the time of sentencing, those proceedings had generated approximately $146,000.00 which will be deposited into an account designated for victim restitution. 

            This case was investigated by the Federal Bureau of Investigation, Tyler Office, the Internal Revenue Service, Criminal Investigations Division, the Texas State Securities Board, and prosecuted by Assistant U.S. Attorney Jim Noble.

SHERMAN, Texas - U.S. Attorney John M. Bales announced today that two Dallas men have been charged with conspiracy to commit mail fraud in connection with a Denton County highway expansion project in the Eastern District of Texas.

            James Kevin Bollman, 48, and Wade Wylie Blackburn, 33, were named in the one-count indictment returned by a federal grand jury today in Sherman, Texas.     

            According to the indictment, from June 2008 through July 2015, Bollman and Blackburn are alleged to have conspired to defraud the Texas Department of Transportation (TXDOT) by purchasing property and then selling it to TXDOT at an inflated price.  The fraudulent activity included the purchase of six parcels of land in Denton County, Texas all adjacent to IH-35.  Bollman and Blackburn purchased the property for the purpose or selling it to TXDOT at an inflated price.  To facilitate the scheme, the defendants made false representations to TXDOT which facilitated a quicker sale to TXDOT with an upfront option fee and increased the value.  The scheme is alleged to have resulted in fraudulent net proceeds of $12,948,321.

            Under federal statutes, Bollman and Blackburn each face up to 20 years in federal prison if convicted.  The maximum statutory sentence prescribed by Congress and 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 prosecuted by Assistant U.S. Attorneys Christopher A. Eason and J. Andrew Williams.

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

TYLER, Texas – A 27 year old Dallas, Texas woman has pleaded guilty in federal court to Car-Jacking and Bank Robbery charges, announced U.S. Attorney John M. Bales today. 

According to information presented in court, on March 13, 2015, Chanel Collins, 27, a Dallas resident, drove Laquaylan Patterson (Patterson) from Jarvis Christian College, just east of Hawkins, Texas, to an apartment complex in Tyler, Texas, with the intent to aid Patterson in committing an armed carjacking.

Upon arriving at the apartment complex, Patterson got out of Collins’ car, armed with a semiautomatic pistol, and told Collins to wait for his signal to her cell phone.  Patterson then approached a woman who was visiting her mother at the complex, brandished his pistol, and demanded the woman’s car keys.  The woman surrendered her keys and Patterson took her vehicle and drove away.  Patterson then signaled Collins and she also departed the complex in her car.  Collins and Patterson then drove their respective vehicles back to Jarvis Christian College.

Later that same day, Collins drove her vehicle to a car wash in Big Sandy, Texas,  to aid Patterson in committing an armed robbery of the 1st National Bank of Gilmer,  located in Big Sandy.  As Collins was waiting for Patterson at the car wash, Patterson drove the vehicle he had carjacked to the bank.  Patterson entered the bank and brandished a pistol, climbed behind the teller counter, and demanded money from the tellers.  The tellers stood aside as Patterson removed all the bills from two cash drawers and put the money in a bag.  Patterson then fled the bank, driving in the carjacked vehicle to the car wash where Collins was waiting.  Once Patterson arrived at the car wash, he and Collins fled in her vehicle.

            Collins and Patterson were indicted by a Federal Grand Jury in Tyler, Texas on June 17, 2015.  Collins is facing a maximum sentence of 25 years’ incarceration plus a fine of $250,000.00.  A sentencing hearing for Collins will be held at a later date.  Patterson’s case is still pending trial.

            This case was investigated by the Federal Bureau of Investigation, Tyler Office, the Texas Rangers’ Office, the Big Sandy Police Department, and the Tyler Police Department, and is being prosecuted by Assistant U.S. Attorney Jim Noble.

PLANO, Texas - U.S. Attorney John M. Bales announced today that a former United States Postal Service executive has been sentenced to probation for an offense committed in the Eastern District of Texas.

            Russell Sykes, 64, of Boynton Beach, Florida, a retired executive level employee of the United States Postal Service, was sentenced to three years’ probation and was fined $5000 during a hearing before Judge Amos L. Mazzant on March 29, 2016. 

            According to information presented in court, Sykes had been employed by the Postal Service in an Executive Service position as Manager of the Surface Transportation Category Management Center in Largo, MD.  Sykes retired from this position on May 31, 2011.  Immediately before his retirement, Sykes was heavily involved, in accordance with his position as a manager for the Postal Service, in negotiating contracts with Alan Richey, Inc. (ARI), a company that leased trailers to the Postal Service to transport mail.  After his retirement, Sykes represented ARI in matters related to contracts between ARI and the Postal Service in violation of the statute.  As a result, Sykes was paid fees totaling $30,000 by ARI, and additional contracts were awarded to ARI.  Federal law prohibits, for two years, former government employees who served in an executive level position from contacting or communicating with their former department or agency about any matter that was pending before that department or agency and over which the employee had official responsibility.           

Area Special Agent in Charge Curtis Lembke, U.S. Postal Service OIG, Special Inquiries Division, stated, “Sykes used his former position with the Postal Service for his own personal gain. This criminal behavior is not tolerated, and the results of this investigation serve as a deterrent to others.”   

This case was investigated by the United States Postal Service, Office of the Inspector General (OIG), and prosecuted by the United States Attorney’s Office of the Eastern District of Texas.

TYLER, Texas - U.S. Attorney John M. Bales announced today that 16 individuals have been charged in a federal firearms and drug trafficking conspiracy in the Eastern District of Texas.

            According to the three indictments, which were returned by a federal grand jury on Mar. 16, 2016, the 16 defendants are alleged to be involved in a conspiracy by either members or associates of the Aryan Brotherhood and criminal street gangs to violate federal firearms and narcotics laws in the Gregg County, Texas area.  Those named in the indictments from Longview include:

Haley Still, 29; Courtney Crim-Gross, 39; James Todd Harrington, Jr., 34; David Wayne Williams, 30; Chad David Dunaway, 23; Brandon Scott Cheatum, 34; Brandon Michael Allen, 31; Jason Ray Ragan, 26; Erick Lamar Addison, 37; James Lamar Fountain, 34; Charles Tarez Rollins, 41; Alvin Lee Thompson, 42; Kenneth Ray Addison, 41; and
Gena Elizabeth Rowley, 36.

            Also indicted was Timothy Paul Morales, 23, of Galveston, Texas.

            The defendants are charged with conspiring to distribute methamphetamine and cocaine from at least January 2014.  Many of the defendants are also charged with firearms violations such as being felons in possession of a firearm and possession of a firearm during a drug trafficking crime.  If convicted, they face penalties of from five years to Life in federal prison.

This operation used confidential informants, search warrants, traffic stops, and other investigative tools to seize over 15 firearms and 650 grams of methamphetamine.

            This 10-month, multi-agency investigation was led by the Tyler Texas Bureau of Alcohol, Tobacco, Firearms and Explosives Field Office and Tyler Texas Federal Bureau of Investigation Field Office with assistance provided by the Gregg County CODE Unit, Longview Police Department, Gregg County Sherriff’s Office, and the Tyler Texas Drug Enforcement Administration Field Office.  This case is being prosecuted by Assistant U.S. Attorney Jim Middleton.

SHERMAN, Texas — A 47-year-old Carrollton, Texas man has been found guilty of child exploitation charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

Oscar Figueroa was indicted by a federal grand jury on July 15, 2015 and charged with coercion and enticement of minors.  Figueroa was found guilty today following a four day trial before U.S. District Judge Amos L. Mazzant.

According to the indictment, on July 7, 2015, law enforcement officers became aware of a Craigslist advertisement posted by a person identified as Figueroa seeking a young male for sexual activity.  An undercover officer posing as a 16-year-old boy contacted Figueroa and began exchanging text messages.  Figueroa instructed the undercover officer to meet him at a particular place within the AMC Theatres at Stonebriar Centre.  Frisco PD Officers arrived at the theatre and discovered Figueroa, who directed an undercover officer to a bathroom for sexual activity.  During the trial, attorneys for the United States introduced Figueroa’s text messages with the undercover agent, his interview with law enforcement, Craigslist ads he posted, and the contents of his cellular phone. 

Figueroa was arrested on July 10, 2015 and remains in custody.  Figueroa faces a minimum of 10 years, and up to life, in federal prison at sentencing.  A sentencing date has not been set.

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 Homeland Security Investigations (HSI) and the Frisco Police Department and prosecuted by Assistant U.S. Attorneys Marisa Miller and Jay Combs.

BEAUMONT, Texas – U.S. Attorney John M. Bales announced today the indictment of two federal inmates charged with killing another inmate in the Eastern District of Texas.

            Christopher Cramer, 33, of Ogden, Utah, and Ricky Fackrell, 32, of Vernal, Utah, were named in the two-count indictment charging them with murder and conspiracy to commit murder returned by a federal grand jury today.

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

If convicted, the defendants could receive the death penalty or up to life in federal prison.

This case is being investigated by the Federal Bureau of Investigation and the Bureau of Prisons-SIS.  This case is being prosecuted by Assistant U.S. Attorneys John Craft and Joseph R. Batte.

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 36-year-old Baltimore, MD man has been sentenced to federal prison for child exploitation violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

Ian Christian Anderson pleaded guilty on Sep. 10, 2015 to enticement of a minor and was sentenced to 135 months in federal prison today by U.S. District Judge Marcia Crone.

According to information presented in court, in January 2015, Anderson began an on-line relationship with a 14-year-old girl in the Eastern District of Texas.  After several weeks of communicating with the victim, Anderson traveled from his home near Baltimore, Md., to the victim's hometown in Texas, on two separate occasions in February and March 2015.  On both trips Anderson engaged in sexual relations with the 14-year-old that constituted felony sexual assault under the laws of the State of Texas.  Anderson also used his cellular telephone to send sexually explicit text messages to the victim in which he attempted to persuade her to engage in future similar sexual relations.  Anderson was indicted by a federal grand jury on May 7, 2015.

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, the Lumberton Police Department and the Hardin County Sheriff’s Office.  This case was prosecuted by Assistant U.S. Attorney Joseph R. Batte.    

TEXARKANA, Texas - U.S. Attorney John M. Bales announced today that eleven individuals have been indicted on federal charges involving conspiracy to commit an offense and to defraud the U.S. government and theft of government property or money in the Eastern District of Texas.

The defendants were named in a three-count indictment returned by a federal grand jury on Feb. 17, 2016, charging them with conspiracy to commit an offense against and to defraud the U.S. government and theft of government property or money.  These violations are alleged to have caused over $1.2 million in losses to a distributor of federal grant funds to the needy and elderly.  Those charged are:

Cynthia Hillard Campbell, 54, of Mount Pleasant, Texas
Beverly Thomas Logan, 64, of Mount Vernon, Texas                   
Lana Bowie Dethrow, 58, of Honey Grove, Texas
Marco Antonio Alcaraz-Guerrero, 40, of Greenville, Texas
Paula Wallis Trantham, 50, of Winnsboro, Texas
Christy Lynn Shelby, 41, of Mount Vernon, Texas
Brenda McGill Fountain, 60, of Mount Vernon, Texas
Darlene Hargrave Hatcher, 61, of Mount Vernon, Texas
Karinda Anne Breaux, 52, of Mount Vernon, Texas
Pamela Powe Gossett, 61, of Pittsburg, Texas
Maria Delaluz Telles, 35, of Mount Vernon, Texas

The indictment was unsealed today after the defendants made initial appearances before U.S. Magistrate Judge Caroline Craven in the federal court in Texarkana.

Northeast Texas Opportunities, Inc. (NETO), headquartered in Mount Vernon, Texas, was a distributor of federal grant funds to the elderly and needy in an eight-county region.  Those counties included:  Delta, Franklin, Hopkins, Lamar, Morris, Rains, Red River, and Titus counties.  NETO administered multiple programs, including Head Start Programs, Low-Income Energy Assistance Programs, Community Services Block Grant Programs, Title III Part-C Nutrition Services Programs, Nutrition Services Incentive Programs, and others.  NETO received more than $3 million per year in federal funds from multiple agencies, including the U.S. Department of Transportation, U.S. Department of Health and Human Services, U.S. Office of Management and Budget (through the Agency of Children and Families), and the U.S. Department of Agriculture. 

According to the indictment, it is alleged that beginning in January 2011 and continuing until June 2015, NETO employees and contractors conspired to defraud NETO of money by writing checks drawn on NETO accounts that they would often split among themselves, and convert those funds to personal use.  It is alleged that NETO employees would also create fraudulent invoices from vendors to support and conceal those unauthorized checks.  It is also alleged that NETO employees would overpay vendors and then require kickbacks from the vendors.  The indictment alleges that NETO employees also used NETO funds to pay personal debts or other personal benefits.  Campbell, Logan, Dethrow, Alcaraz, Trantham, Shelby, Fountain, Hatcher, Breaux, and Telles were NETO employees, and Gossett was a contract nurse to NETO.  NETO ceased operations and shut its doors on Aug. 31, 2015 due to financial insolvency, employee malfeasance, and stoppage of funding sources due to discoveries during an audit and the ongoing criminal investigation.

If convicted of conspiracy to commit an offense against or defraud the U.S. government, the defendants each face up to five years in federal prison.  If convicted of theft of government property or money, the defendants each face up to 10 years in federal prison. 

This case is being investigated by the Federal Bureau of Investigation with assistance from the Texas Rangers and the Franklin County Sheriff’s Office.  This case is being prosecuted by Assistant U.S. Attorney D. Ryan Locker.

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 - U.S. Attorney John M. Bales announced today that seven individuals have been arrested following a lengthy investigation into drug trafficking in the Eastern and Southern Districts of Texas.

                On Feb. 24, 2016, a combined task force of federal, state and local law enforcement executed federal arrest warrants in Harris County as a result of a joint investigation by the Bureau of U.S. Drug Enforcement Administration, Galveston Police Department, Federal Bureau of Investigation, U.S. Marshals Service, Office of Homeland Security, Texas Department of Public Safety – Texas City, Customs and Border Protection – ERO and MIA, Galveston County Sheriff’s Office, Harris County Sheriff’s Office, Dickinson Police Department, League City Police Department, Webster Police Department, Brazoria County Sheriff’s Office, Pearland Police Department, Houston Police Department, and Texas National Guard.

The operation resulted in the arrest of seven out of 12 defendants in two separate indictments returned by a federal grand jury on Feb. 3, 2016.  According to one of the indictments, from December 2010 until June 30, 2015, the defendants conspired to distribute methamphetamine in East Texas and elsewhere.  Those arrested and named in the indictment are:

JESUS NAJAR SILVA, 40, 

ROLANDO DELAROSA, JR., 21, and                                                                           

ADRIANA DANIELLE GARAMILLO, 21.

According to the other indictment, from March 2014 until present, the defendants conspired to distribute methamphetamine in East Texas and elsewhere.  The indictment also charges two of those defendants with conspiring to distribute heroin.  Those arrested and named in the indictment are:

JAIME CRUZ ROMERO, 32, a/k/a Panfilo Sacais, a/k/a Jaime Carrillo, and a/k/a Jaime;       

PEDRO DUARTE, JR., 23, a/k/a Peches;

JUAN DUQUE-TINOCO, 44; and                

ALEJANDRO AVILEZ GOMEZ-PENALOZA, 45, a/k/a Gordito.         

All of the defendants are residents of the Harris County, Texas area. During the arrests, authorities seized approximately 20 grams of methamphetamine, approximately $8,500 in cash, and three vehicles.  If convicted, the defendants face as much as life in federal prison.

                These cases are the result of ongoing Organized Crime Drug Enforcement Task Force (OCDETF) joint investigations, Operation Dream Catcher, Operation The Walking Dead and Operation Tickle, and part of a concerted investigation with simultaneous arrests and charges of other defendants in the Southern District of Texas and Western District of Texas.  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. 

These cases are being investigated by DEA, HSI-OHS, Galveston Police Department, Galveston County Sheriff’s Office, Houston Police Department and Harris County Sheriff’s Office, Longview Police Department, and Gregg County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Michelle Englade.

Other arrests and federal charges related to Operation Dream Catcher have taken place today in the Southern District of Texas and the Western District of Texas.

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

PLANO, Texas – A 73-year-old former SEC accountant from Denton, Texas, has entered into a settlement concerning conflict of interest allegations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

                Edmund W. Bailey, Jr., now residing in Mesquite, Nevada, signed a civil settlement agreement today resolving federal conflict of interest allegations arising from an expert report he prepared after his retirement from the Securities and Exchange Commission (SEC) in 2012.

                According to court documents, in March 2012, Bailey, a Senior Associate Chief Accountant, retired from the SEC.  On June 3, 2013, Bailey prepared and submitted an expert report to KPMG, LLP, conveying his expert opinion as to whether certain KPMG policies and procedures were inconsistent with SEC auditor independence rules.  KPMG then submitted the report to the SEC as part of a “Wells Submission,” which is information provided to the SEC by a potential defendant advocating why the agency should not institute an enforcement action in a particular matter.  The United States alleged that Bailey’s expert report constituted a prohibited communication to the SEC in violation of United States post-employment conflict of interest restrictions under 18 U.S.C. § 207.  Bailey has agreed to pay a civil fine of $40,000 (out of an applicable maximum of $50,000) to resolve the allegations.  Bailey has denied any allegations of wrongdoing.

Today’s settlement marks the second time in four years that the U.S. Attorney’s Office for the Eastern District of Texas has pursued and resolved conflict of interest allegations against senior SEC personnel under 18 U.S.C. § 207.  The prior 2012 press release can be located at http://www.justice.gov/archive/usao/txe/News/2012/edtx-barasch-011312.html.

“The public expects that its federal employees will honor and abide by the stringent conflict of interest prohibitions and ethical standards required by law,” said U.S. Attorney Bales.  “Our office intends to ensure that those expectations are met.”

This case was investigated by the Securities and Exchange Commission Office of Inspector General and the U.S. Attorney’s Office for the Eastern District of Texas.  The settlement was negotiated by Assistant U.S. Attorneys Randi Russell and Joshua Russ.  The claims resolved by the settlement are allegations only, and there has been no determination of liability.

BEAUMONT, Texas – An Oklahoma man has pleaded guilty to federal charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

     Parker Ryan Little, 19, of Wagoner, OK, pleaded guilty in federal court today to charges of making a false bomb threat in an appearance before U.S. Magistrate Judge Keith Giblin. 

     According to information presented in Court, on April 11, 2015, an emergency call was placed stating that a person who identified himself as “M.S.” had just shot his mother, strapped a bomb to his 21 year old daughter’s chest and was armed with an AR-15.  The caller provided an address in Port Neches, Texas.  The call was placed from a telephone number that was later determined to be associated with Google Voice, a telephone service that makes calls via the internet.  Due to the nature of the call, the Jefferson County SWAT team was dispatched to the address.  After approximately two and one half hours, SWAT team members made contact with the occupant of the residence, who had no knowledge or involvement in the alleged incident.

     That same night, the Corinth Police Department received a similar call.  Corinth Police Officers were dispatched to a home in Shady Shores, Texas, which is located in Denton County.  Denton County dispatch received a call from a male stating he had shot his mother, strapped a bomb to his sister and was in possession of a knife and a rifle.  The call was placed from the same Google Voice number used to make the emergency call earlier in the day in Port Neches.  The Denton bomb squad, the Denton County Sheriff’s Department SWAT and the Texas Rangers responded to the address in Shady Shores.  Eventually, two male occupants and one female occupant exited the residence.   No evidence of the reported incident was found inside the home.  The occupants were determined to have no involvement in the incident. 

     During the course of the investigation, it was determined that a computer hacker nicknamed “Demon” had been contacting a former resident of the Port Neches address and a resident of the Shady Shores home and making various threats.  Investigators, utilizing subpoenas and search warrants, were able to determine that the email address used to initiate the Google Voice account and a register Twitter account @DeMoNTheLord were owned by the defendant, Parker Little.  Little used these accounts to harass well known on-line gamers, some of whom had millions of Twitter followers, and attempt to coerce them into following @DeMoNTheLord on Twitter or mention @DeMoNTheLord, a positive light, presumably to help him gain more followers and increase his own stature.  If they would not comply with his demands, he would seek revenge on them in various ways, including “swatting” or “doxxing.”  “Swatting” has become prevalent among gamers, targeting those who livestream or broadcast themselves and their game play live over the internet.  “Swatting” involves the placing of a hoax call to 9-1-1, usually reporting a serious crime such as a hostage situation or active shooter in order to draw a response from law enforcement.  “Doxxing” or “doxing” is the Internet-based practice of researching and broadcasting personally identifiable information about an individual, posting it in public forums.  Investigators were able to identify at least 7 other victims of Parker’s on-line harassment, some of whom were “swatted” in a manner similar to the victims in Port Neches and Shady Shores.

     Little faces a term of imprisonment of not more than 10 years, a fine not to exceed $250,000 or twice the pecuniary loss to the victim or gain to the defendant.  He also faces a term of supervised release of not more than three years following his release from custody.  A sentencing date has not been determined at this time.

     This investigation was conducted by the Federal Bureau of Investigation, the Texas Rangers, the Port Neches Police Department, Jefferson County Sheriff’s Department, the Corinth Police Department and the Denton County Sheriff’s Department.  This case is being prosecuted by Assistant U.S. Attorney Christopher T. Tortorice.

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African Leopard mount shipped in interstate commerce

     SHERMAN, Texas – After just over 3 hours of deliberations, a federal jury in Sherman found a Calvin, Oklahoma man guilty of committing Lacey Act and Endangered Species Act violations in connection with the shipment of an African Leopard trophy mount from Oklahoma to the Eastern District of Texas yesterday, announced U.S. Attorney John M. Bales today. 
 
     Steven Michael Seibert, 56, is owner-operator of Triple S Wildlife Ranch near Calvin, Oklahoma.  Seibert offers guided hunts of domestic and exotic wildlife on this 3,000 acre, high fenced, ranch.  Seibert also commercially trades in taxidermy via his website “Wildlife Creations”.
 
     In August of 2012 Agents with U.S. Fish and Wildlife learned that Seibert was offering a full body mount, African Leopard trophy for sale on his website for $3,995.00.  African Leopards are listed as an endangered Species under the Endangered Species Act and therefore it is unlawful to offer them for sale in interstate commerce.  Fish and Wildlife agents had been in contact with Seibert on previous occasions regarding his international shipments of taxidermy wildlife and so the agents knew that Seibert was aware of the restrictions on trading in endangered species.
     
     Agents contacted Seibert in an undercover capacity posing as Denton, Texas resident interested in purchasing the leopard mount.  Seibert told the “buyer” that although the leopard trophy was in his inventory in Oklahoma, he could sell the leopard to a Texan so long as they could “keep it straight” that the leopard was actually being sold by another Texas resident in Bonham.   On August 13, 2012, Seibert’s delivery driver delivered the leopard to the undercover agent at a self-storage unit in Denton, Texas.  The driver also presented an invoice that indicated that the seller was a Bonham, Texas resident.  When questioned by agents, the driver advised that Seibert had instructed him to tell “anyone who asked” that the leopard had come from Bonham, Texas.  Agents called Seibert and claimed that they had just learned about the leopard transaction and asked him explain it. Seibert claimed that the leopard had come from Bonham, Texas and had “never left Texas.” Agents knew this to be false because they had conducted surveillance on the delivery truck from the ranch in Oklahoma all the way to Denton, Texas. 
      
     Seibert testified at trial that the leopard he sold to the undercover agent was actually owned by the Bonham resident who had purchased it at an auction in Ft. Worth, Texas in 2011.  Seibert told the jury that he was only “helping” the Bonham man sell the leopard.  However, the Bonham resident told the jury that it was Seibert who had purchased the leopard at the Ft. Worth auction and that he had no financial interest in it whatsoever.  The government offered evidence that the leopard purchased at the Ft. Worth auction was actually a different leopard and that the leopard Seibert had sold to the undercover agent had been at Seibert’s hunting lodge since at least January of 2010. 

     The jury also found that the false invoice Seibert had prepared was a Lacey Act violation.  The Lacey Act prohibits the use of a false label in connection with the sale of wildlife in interstate commerce. 

     Seibert is facing up to five years in prison and a $250,000.00 fine.  A sentencing date has not been set.
This case was investigated by the U.S. Fish and Wildlife Service, Office of Law Enforcement in Ft. Worth, Texas, and was prosecuted by Assistant U.S. Attorney Jim Noble.

 

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TYLER, Texas – U.S. Attorney John M. Bales announced that an East Texas pain management physician has pleaded guilty to illegally dispensing controlled substances.

     Sameer Andoni Fino, 49, of Murphy, Texas, pleaded guilty before United States Magistrate Judge John D. Love for dispensing controlled substances outside the usual course of professional practice and not for a legitimate medical purpose.

     According to information presented in court, Fino, as the owner of the Fino Pain Clinic, provided pain management services to patients in the Dallas/Fort Worth metropolitan area and East Texas.  On September 24, 2014, in Longview, Texas, Fino evaluated an undercover law enforcement agent who was posing as a new patient.  During that visit, Fino did not perform any physical examination of the agent.  After meeting with the agent for approximately six minutes, Fino wrote the undercover agent a prescription for 60 units of Norco ® 10 mg, which is an opioid pain medication containing hydrocodone.  Fino knowingly and intentionally dispensed this controlled substance outside the usual course of professional practice and not for a legitimate medical purpose.

     In connection with his guilty plea, Fino has agreed to voluntarily surrender his DEA Certificate of Registration, thereby surrendering his privileges to prescribe controlled substances in the future. 

     In a related civil action, Fino has agreed to forfeit $3,936,704.41.  The funds were originally seized during the execution of federal seizure warrants.  At sentencing, Sameer Andoni Fino faces up to ten years in federal prison.  No sentencing date has been set.

     The investigation leading to the charges was conducted by agents from the United States Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the United States Department of Health and Human Services – Office of the Inspector General (HHS-OIG), and the Texas Office of the Attorney General – Medicaid Fraud Control Unit (OAG-MFCU).  Special Assistant United States Attorney Kenneth C. McGurk is prosecuting this case.

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BEAUMONT, Texas – A 59 year old Orange, Texas man has been sentenced to federal prison for conspiring to possess “crack” cocaine and possession of a firearm by a convicted felon announced U.S. Attorney John M. Bales today. 

    Grover Lee Roberts pleaded guilty on November 24, 2015, to Conspiracy to Possess with the Intent to Distribute Cocaine Base and Possession of a Firearm by a Convicted Felon and was sentenced to 60 months in federal prison today by U.S. District Judge Ron Clark.  In addition to his term of imprisonment, Roberts’ was ordered to forfeit his residence and the gun recovered from his house to the Government.  In addition, he received a money judgment in the amount of $10,000.00.

    According to information presented in court, beginning sometime in 2008, Roberts began to sell ounce quantities of cocaine base from or near his residence in Orange, Texas.  In early 2009, Roberts was arrested and pleaded guilty to felony possession of a controlled substance in the 128th District Court of Orange, Texas.  Despite receiving a seven year probated sentence for these state charges, Roberts persisted in his crack cocaine distribution until his arrest on federal charges in October, 2015.  While executing search and arrest warrants at Roberts’ residence in Orange, Roberts told officers that he had a gun in his residence.  A subsequent search of his Roberts’ home produced a Hardballer, AMT Long Slide .45 caliber pistol and .45 caliber ammunition.

    This case was investigated by the Drug Enforcement Administration and the Orange Police Department and prosecuted by Assistant U.S. Attorney John Craft.

SHERMAN, Texas – A former government contractor employee was sentenced to 46 months in prison today for his role in a bribery scheme involving a federal program in Afghanistan and conspiracy to structure financial transactions to avoid currency transaction reporting requirements.

    Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, United States Attorney John M. Bales, Eastern District of Texas, the Special Inspector General for Afghanistan Reconstruction (SIGAR) John F. Sopko, Special Agent in Charge Thomas M. Class Sr. of the FBI’s Dallas Division and Inspector General Ann Calvaresi Barr of the U.S. Agency for International Development (USAID) made the announcement. 

    George E. Green, 58, of Carrollton, Texas, who worked at International Relief and Development Inc. (IRD) in Afghanistan, was sentenced by U.S. District Judge Marcia A. Crone of the Eastern District of Texas.

    According to his plea agreement, Green served as IRD’s director of contracts, procurement and grants in connection with a cooperative agreement between USAID and IRD to strengthen economic stabilization and promote long-term agricultural development in specific areas of Afghanistan.  Green admitted that in March and April 2012, he solicited and received a $51,000 bribe from a representative of an Afghan company that provided agriculture-related products and that sought subcontracts from IRD.  Between May and August 2012, after he returned to Texas, he attempted to conceal the bribe proceeds by conspiring with others to make cash deposits of less than $10,000 each into his bank and credit card accounts to circumvent the financial institutions’ mandatory cash reporting requirements, he admitted. 

    SIGAR, the FBI and USAID’s Office of Inspector General investigated the case.  Former Special Trial Attorney Mark H. Dubester and Trial Attorney Michael T. O’Neill of the Criminal Division’s Fraud Section prosecuted the case.  Assistant U.S. Attorney Kevin McClendon of the Eastern District of Texas assisted with the prosecution.

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A former government contractor employee was sentenced to 46 months in prison today for his role in a bribery scheme involving a federal program in Afghanistan and conspiracy to structure financial transactions to avoid currency transaction reporting requirements.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney John M. Bales of the Eastern District of Texas, the Special Inspector General for Afghanistan Reconstruction (SIGAR) John F. Sopko, Special Agent in Charge Thomas M. Class Sr. of the FBI’s Dallas Division and Inspector General Ann Calvaresi Barr of the U.S. Agency for International Development (USAID) made the announcement. 

George E. Green, 58, of Carrollton, Texas, who worked at International Relief and Development Inc. (IRD) in Afghanistan, was sentenced by U.S. District Judge Marcia A. Crone of the Eastern District of Texas, who also ordered the defendant to forfeit $51,000.

According to his plea agreement, Green served as IRD’s director of contracts, procurement and grants in connection with a cooperative agreement between USAID and IRD to strengthen economic stabilization and promote long-term agricultural development in specific areas of Afghanistan.  Green admitted that in March and April 2012, he solicited and received a $51,000 bribe from a representative of an Afghan company that provided agriculture-related products and that sought subcontracts from IRD.  Between May and August 2012, after he returned to Texas, he attempted to conceal the bribe proceeds by conspiring with others to make cash deposits of less than $10,000 each into his bank and credit card accounts to circumvent the financial institutions’ mandatory cash reporting requirements, he admitted. 

SIGAR, the FBI and USAID’s Office of Inspector General investigated the case.  Former Special Trial Attorney Mark H. Dubester and Trial Attorney Michael T. O’Neill of the Criminal Division’s Fraud Section prosecuted the case.  Assistant U.S. Attorney Kevin McClendon of the Eastern District of Texas assisted with the prosecution.

TYLER, Texas – A 23-year-old Tyler, Texas man has been convicted of drug trafficking charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

            Jose Maldonado Barragan was found guilty by a jury on Feb. 10, 2016, of conspiracy to possess with intent to distribute methamphetamine, aiding and abetting, possession with intent to distribute methamphetamine, possession of a firearm while illegally in the United States, and possession of a firearm during a drug trafficking crime.  The jury deliberated less than two hours before reaching a verdict following a three-day trial before U.S. District Judge Michael H. Schneider. 

According to information presented in court, the Defendant supplied methamphetamine for several months in the spring of 2014.  An eight ounce seizure occurred in Palestine, Texas on Mar. 31, 2014 which was later tied to the Defendant.  Additionally, a four pound seizure occurred on May 12, 2014 in Tyler, Texas.  The Defendant’s fingerprints were later found on the packaging.  Barragan was indicted by a federal grand jury on Oct. 28, 2015.

Barragan faces a minimum of 10 years and up to life in federal prison.  The maximum statutory sentence prescribed by Congress and 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, Texas Department of Public Safety and the Anderson County Sheriff’s Office and was prosecuted by Assistant U.S. Attorneys Mary Ann Cozby and Ryan Locker.

BEAUMONT, Texas – A 43-year-old Hankamer, Texas woman has pleaded guilty to federal income tax violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

Holly D. Kirkwood pleaded guilty to filing a false income tax return today before U.S.  Magistrate Judge Keith Giblin.

           According to information presented in court, beginning around January 2008 and continuing to 2011, Kirkwood was the office manager and bookkeeper for Rustbusters, a painting and sandblasting corporation, based in Humble, Texas.  As part of her job responsibilities Kirkwood submitted forms to Employers One Source Group (EOSG), an employee staff leasing and payroll company, for reimbursement of expenses incurred by employees of Rustbusters. EOSG prepared and issued reimbursement checks to employees for expenses incurred by the employees of Rustbusters. In 2008, Kirkwood began submitting reimbursement forms to EOSG for the purchase of sand and grit purportedly made by her and used by the company in its operations, when in fact no such purchases had been made. This fraudulent reimbursement scheme continued through early 2011during which she received numerous reimbursement checks totaling $567,332.00 in 2008, $713,474.00 in 2009, and $671,014.00 in 2010. Because of the large increase in Rustbuster’s business during peak oil drilling years the excess reimbursements were not discovered until a forensic audit was conducted by a CPA firm. Kirkwood failed to report on her individual income tax returns for 2008 -2010 the additional unauthorized reimbursements monies received during those years instead reporting only her normal W-2 wages.  Her tax returns were prepared in Orange, Texas. The additional tax due and owing for the 2008-2010 years is $209,831 in 2008, $249,766 in 2009, $219,971 in 2010, and $4,796 in 2011, totaling $684,364. 

                Kirkwood agreed to pay criminal restitution to the Internal Revenue Service and remains civilly liable for all penalties and interest.  Under federal statutes, Kirkwood faces up to three years in federal prison.  The maximum statutory sentence prescribed by Congress and is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors.  A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.

                This case was investigated by the Internal Revenue Service, Criminal Investigations Division and prosecuted by Assistant U.S. Attorney Robert L. Rawls.

MARSHALL, Texas – A 60-year-old Kennard, Texas man has pleaded guilty to federal environmental violations, announced U.S. Attorney John M. Bales today.

                Rodney K. Beshears pleaded guilty to violating the work practice standards of the Clean Air Act today before U.S. Magistrate Judge Roy Payne. 

            According to information presented in court, Beshears admitted that in October of 2011, he and his employees began excavating and removing a pipeline in northeast Texas.  On Dec. 16, 2011, an inspector with the Texas Department of State Health Services conducted a site inspection where Beshears was removing the pipeline near Diana, Texas, and informed Beshears that the pipeline had a coating of asbestos.  On Dec. 21, 2011, Beshears received training on asbestos removal practices which included instructions on the proper handling of asbestos material required under the work practice standards of the National Emission Standards for Hazardous Air Pollutants or “NESHAP” rules for asbestos when excavating and removing pipe with a coating of asbestos.  On Jan. 13, 2012, the Texas Department of State Health Services inspected another site where Beshears was excavating and removing the pipeline just outside of Ore City, Texas and again informed Beshears that the pipe had a coating of asbestos material. 

Beshears’ removal of the pipeline continued through March, 2012, during which time, Beshears removed, and caused others to remove, several thousand feet of pipeline which contained regulated asbestos containing material, between Diana and Ore City, Texas.  The excavation, cutting and removal of the pipeline, as directed by Beshears, included no wetting of the asbestos material that coated the pipeline as Beshears had been instructed during the training.  The asbestos material was crumbled and pulverized by hitting the pipe coating with a hammer to knock it off the pipe to expose the pipe so it could be cut into pieces; asbestos was crumbled and pulverized by dragging the pipe segments across the ground; and asbestos was not disposed of at approved disposal facilities.  Beshears was indicted by a federal grand jury on Sep. 3, 2014.  

            Under federal statutes, Beshears faces up to five years in federal prison at sentencing.  The maximum statutory sentence is prescribed by congress and is provided for informational purposes, as the sentencing of the defendant 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 EPA’s Criminal Investigation Division in Dallas, Texas, the TCEQ’s Criminal Investigation Division, and the Texas Department of Parks and Wildlife, and prosecuted by Assistant U.S. Attorney Jim Noble.