Eastern District of Texas

SHERMAN, Texas – A 52-year-old man from Karachi, Pakistan 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.

Muhammad Aijaz Sarfraz was convicted by a jury on May 14, 2015 of conspiracy to manufacture and distribute controlled substances and international money laundering conspiracy.  Sarfraz was sentenced to 240 months in federal prison on Feb. 3, 2016 by U.S. District Judge Amos L. Mazzant.

                According to information presented in court, from March 2009 until Sarfraz’s arrest in April 2012, Sarfraz operated numerous illegal websites through which he distributed millions of illicit Schedule II, III, and IV controlled substances to Internet customers throughout the United States.  Those pills included popular prescription medications such as OxyContin, Percocet, Adderall, Ritalin, Hydrocodone, Xanax, Valium, Ambien, and others.  The counterfeit drugs were generally manufactured in China, Singapore, Malaysia, India, Pakistan, and Hong Kong.  The pills, which were made to look like authentic prescription medications approved for use in the United States, often contained incorrect active pharmaceutical ingredients or the wrong quantity and dosage strength of those substances.  No physicians or medical professionals of any kind were involved at any stage of the drug distribution process.  It is estimated that the criminal enterprise may have generated as much as $100 million or more in proceeds between 2009 and 2012.  Sarfraz was indicted by a federal grand jury on Apr. 12, 2012.  

                This case was investigated by the U.S. Drug Enforcement Administration and the Internal Revenue Service – Criminal Investigation, and was prosecuted by Assistant U.S. Attorneys Stevan Buys and Will Tatum.

SHERMAN, Texas – A 27-year-old Morganton, NC man has pleaded guilty in connection with an oil and gas scheme in the Eastern District of Texas, announced U.S. Attorney John M. Bales.              

Justin Spearman pleaded guilty to wire fraud today before U.S. Magistrate Judge Christine A. Nowak.   

According to information presented in court, in June 2015, Spearman devised and executed a scheme to defraud another individual by filing fraudulent Assignments of Overriding Royalty Interest (ORI)s in Greeley Colorado, and attempting to do so in Cheyenne, Wyoming, that actually belonged to other persons, one of which was the owner of a royalties company located in Collin County, Texas.  Spearman was indicted by a federal grand jury on July 15, 2015.

Spearman faces up to 20 years in federal prison at sentencing.  The maximum statutory sentence is prescribed by Congress and is provided here 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 date has not been set.

This case is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Chris Eason.

BEAUMONT, Texas – A 22-year-old Beaumont, Texas man has been sentenced to federal prison for a fatal carjacking in the Eastern District of Texas, announced U.S. Attorney John M. Bales today. 

River Shynette Gobert pleaded guilty on Aug. 26, 2015 to carjacking resulting in death and was sentenced to 30 years in federal prison today by U.S. District Judge Thad Heartfield.  This sentence will run consecutive to a state prison sentence he is already serving.         

          According to information presented in court, early on the morning of June 23, 2013, Gobert and Jonathan Demond Patton entered a self-service laundry on Florida Avenue in Beaumont intending to rob the sole occupant.  When the victim refused to hand over his car keys, Gobert shot him in the leg at Patton’s direction.  Patton and Gobert fled the laundry in their vehicle without the victim’s keys.  They drove by an apartment complex on Woodrow Avenue where they encountered Daryl Dwayne Fontenot asleep in his vehicle.  A struggle ensued when Patton and Gobert attempted to steal the vehicle and Fontenot was shot twice in the chest killing him.  Patton and Gobert fled in their vehicle after they were unable to locate Fontenot’s keys.  A short time later, law enforcement officers stopped Patton and Gobert because their vehicle matched the vehicle reported in the self-service laundry shooting.  Patton and Gobert fled the vehicle but left the weapon used to shoot the two men behind.  Patton and Gobert were arrested and each gave statements indicating the other was responsible for the shootings.  On Sep. 23, 2013, a Jefferson County grand jury indicted Patton and Gobert for the self-service laundry shooting.  Gobert pleaded guilty and was sentenced to seven years in state prison.  Patton pleaded guilty and was sentenced to 10 years in state prison.  On Mar. 5, 2015, a federal grand jury indicted Patton and Gobert charging them for the carjacking murder of Fontenot.  Patton was sentenced to 40 years in federal prison for this charge on Dec. 10, 2015.

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

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

SHERMAN, Texas – A 42-year-old McKinney, Texas woman has pleaded guilty to federal crimes in the Eastern District of Texas, announced U.S. Attorney John M. Bales today. 

            Heather Elizabeth Mercado pleaded guilty to theft today before U.S. Magistrate Judge Christine A. Nowak.

            According to information presented in court, from December 2014 to April 13, 2015, Mercado was employed by the University of Texas Southwestern Medical Center in Dallas as Director Talent Acquisition in the Human Resources Department.  Mercado also controlled and operated a company, Alliance Consulting Partners (ACP), purportedly in the business of hospital staffing.  Mercado devised and executed a scheme in which she represented to UT Southwestern Medical Center that ACP recruited nurses and other personnel to work at UT Southwestern Medical Center thereby causing fraudulent invoices to be generated causing UT Southwestern Medical Center to pay ACP more than $483,000.  UT Southwestern officials identified the fraudulent activities and reported it to authorities.  Mercado was indicted by a federal grand jury on Jan. 13, 2016.    

Mercado faces up to 10 years in federal prison at sentencing.  The maximum statutory sentence is prescribed by Congress and is provided here 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 date has not been set.

This case is being investigated by the Internal Revenue Service – Criminal Investigation and University of Texas Southwestern and prosecuted by Assistant U.S. Attorney Chris Eason.

Centerra Services International Inc., formerly known as Wackenhut Services LLC, has agreed to pay $7.4 million to resolve allegations that Wackenhut violated the False Claims Act by double billing and inflating labor costs in connection with a contract for firefighting and fire protection services in Iraq, the Department of Justice announced today.  Centerra is a security services company headquartered in Palm Beach Gardens, Florida.

“Our military depends on the private sector – both prime contractors and subcontractors – to provide critical services to protect the health and safety of our men and women in uniform,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division.  “Those subcontractors who knowingly inflate the costs of these services, which are passed onto the government and the taxpayer, will face appropriate consequences.  Today’s settlement demonstrates our continuing vigilance to ensure that our servicemen and women obtain the services they need at the price we bargained for.”

Wackenhut provided U.S. military bases with firefighting and fire protection services under a subcontract with Kellogg Brown & Root Inc. (KBR), the prime contractor for the Army’s contract for logistical support in the military theater, known as LOGCAP III.  LOGCAP III is the third generation of contracts under the Army’s Logistical Civil Augmentation Program.  The government alleged that from 2008 to 2010, Wackenhut inflated its labor costs by billing the salaries of certain managers as direct costs under the subcontract, when those salaries had already been charged as indirect costs.  The government further alleged that Wackenhut artificially inflated its labor rate by counting its costs for holidays, vacation, sick leave, rest and recuperation and other variable labor costs twice in calculating the rate.  Wackenhut billed KBR, which then passed on the costs to the government under LOGCAP III.

“Contractors are expected to comply with their statutory obligations and act in good faith when dealing with the U.S. government,” said Special Agent in Charge Janice M. Flores of the Defense Criminal Investigative Service (DCIS) Southwest Field Office.  “The DCIS is committed to working with its partner agencies, such as the U.S. Department of Justice, Defense Contract Audit Agency and the U.S. Army Criminal Investigation Command to ensure the integrity of the Defense Department’s procurement process.  This settlement demonstrates that combatting fraud, waste and abuse within Department of Defense contracting remains a top priority.”

This settlement resolves a lawsuit filed by whistleblower Gary W. Reno under the qui tam or whistleblower provisions of the False Claims Act.  The act permits private individuals to sue on behalf of the government those who falsely claim federal funds, or cause others to do so, and to receive a share of any funds recovered through the lawsuit.  Reno will receive $1.332 million as his share of the recovery.

This settlement was the result of a coordinated effort among the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office of the Eastern District of Texas, the Department of Defense Inspector General’s Office, the Defense Criminal Investigative Service and the Defense Contract Audit Agency. 

The case is captioned Reno v. Kellogg Brown & Root, Inc. and Wackenhut Services, LLC, et al., Case No. 1:10-CV-504 (E.D. Tex.).  The claims resolved by the settlement are allegations only; there has been no determination of liability.  

BEAUMONT, Texas – A 44-year-old Beaumont woman has been sentenced for bringing prohibited drugs into a federal prison in the Eastern District of Texas, announced U.S. Attorney John M. Bales today. 

Lakista Lashau Davis pleaded guilty on Aug. 27, 2015, to conspiracy to possess with intent to distribute heroin and was sentenced to 36 months in federal prison on Jan. 21, 2016 by U.S. District Judge Thad Heartfield.

According to information presented in court, from November 2014 to March 2015, Davis, while employed as a contract nurse at the Beaumont Federal Correctional Complex, conspired with an inmate to smuggle heroin into the Beaumont Prison Complex for distribution.  Davis agreed to a $5,000 payment in return for smuggling the drugs.  Davis was indicted by a federal grand jury on Apr. 2, 2015.  

                This case was investigated by the Federal Bureau of Prisons, Office of Inspector General and the Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney John Craft.

TYLER, Texas – U.S. Attorney John M. Bales announced today the indictment of three individuals charged in a kidnapping conspiracy in the Eastern District of Texas.

                Cory Carnell Mitchell, 27, of Tenaha, Texas; Gary Eugene Cutright, 21, of Zwolle, LA; and Quannell Newton, 35, of Many, LA, were named in the three count indictment charging them with conspiracy to commit kidnapping, kidnapping and possession of a firearm during a violent crime.  The indictment was returned by a federal grand jury late Jan. 20, 2016.

                According to the indictment, in early December 2015, Mitchell, Cutright, and Newton conspired to kidnap an individual and transport the victim from Louisiana to Carthage, Texas.  The victim was shot twice during the kidnapping, but survived.

If convicted, the defendants each face up to life in federal prison for the kidnapping and a minimum of 10 years for the firearms violation.

This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Texas Department of Public Safety – Criminal Investigation Division. The U.S. Marshals Service, Federal Bureau of Investigation, Lufkin Police Department, Nacogdoches Police Department, Center Police Department, Carthage Police Department, DeSoto Parrish Sheriff’s Department, Sabine Parrish Sheriff’s Department and the Panola County Sheriff’s Department assisted in the execution of the arrest warrants.  This case is being prosecuted by Assistant U.S. Attorney Paul A. Hable. 

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

Jose Stephen Gracia pleaded guilty on July 27, 2015 to production of child pornography and was sentenced to Life in federal prison today by U.S. District Judge Marcia Crone.

According to information presented in court, on Apr. 2, 2015, federal agents executed a search warrant at Gracia’s residence in Galveston based on information that child pornography was being distributed from that location.  During the search, investigators located a digital memory card in a locked safe that contained videos of Gracia and his victims.  In these videos, Gracia, a registered sex offender, was engaged in sexual activity with the children.  Further investigation revealed the videos were originally produced in Jefferson County, Texas.  Gracia was indicted by a federal grand jury on May 7, 2015. 

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

                This case is being investigated by the Department of Homeland Security (DHS) Homeland Security Investigations (HSI), Jefferson County District Attorney’s Office, Jefferson County Sheriff’s Office, Galveston Police Department, Pearland Police Department and the Internet Crimes Against Children (ICAC) and prosecuted by Assistant U.S. Attorney Lesley Bartow.

BEAUMONT, Texas – An 18-year-old Beaumont, Texas man has been arrested for federal violations in the Eastern District of Texas announced U.S. Attorney John M. Bales.                  

Trey Joseph Frederick was arrested today pursuant to a criminal complaint issued by the U.S. District Court charging him with violating the Migratory Bird Treaty Act.  Frederick appeared in federal court this afternoon on the charges.

According to information presented in court, on Jan. 11, 2016, a Texas Game Warden received two calls reporting two whooping cranes had been shot on Blair Road in Jefferson County.  Further investigation revealed the defendant had been seen in the area with a hunting rifle and had claimed to be hunting geese.  Federal agents contacted Frederick at his home on LaBelle Road where he admitted to killing the cranes.  Whooping cranes are migratory birds and are protected under the Migratory Bird Treaty Act making it unlawful to capture, kill, or attempt to capture or kill in the United States.

If convicted, Frederick faces up six months in federal prison and a fine of up to $15,000.

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

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

TYLER, Texas – A 39-year-old Lake Charles, Louisiana, man has been sentenced to federal prison for his role in a Nigerian mail fraud scheme in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

Heesham Broussard a/k/a “Sudan,” was found guilty by a jury in July 2015, of conspiracy to commit mail fraud, two counts of mail fraud, and two counts of aggravated identity theft and was sentenced to 120 months in federal prison today by U.S. District Judge Michael H. Schneider.  Broussard was also ordered to pay restitution in the amount of $13,700 to the victims of the offenses.

 According to information presented in court, Broussard participated in a Nigerian-based mail fraud scheme that distributed counterfeit postal money orders and checks.  The scheme targeted victims throughout the United States.  Victims of the scheme were led to believe that they were working as mystery shoppers.  Broussard served as a reshipper or dispatcher of counterfeit postal money orders and checks.  As part of the scheme, he sent packages to more than 600 intended victims and sent counterfeit items bearing a face value of more than $1,000,000.  Broussard was indicted by a federal grand jury on Jan. 22, 2014.

Broussard’s co-conspirators, Olumide Lalemi a/k/a “Paul Smith,” the Nigerian organizer of the scheme, and Victoria Williams, a reshipper, have pleaded guilty to conspiracy to commit mail fraud.  Williams was sentenced to 18 months in federal prison today by Judge Schneider.  Lalemi is scheduled to be sentenced on Feb. 1, 2016 and faces up to 20 years in federal prison.

The case was investigated by Homeland Security Investigations (HSI), the U.S. Postal Inspection Service (USPIS), and U.S. Customs and Border Protection (CBP).  This case was prosecuted by Assistant U.S. Attorneys Nathaniel C. Kummerfeld and D. Ryan Locker.

Any individuals with knowledge of these or other mail fraud violations are encouraged to contact the Homeland Security Investigations Tip Line at 866-DHS-2-ICE (866-347-2423) or the U.S. Postal Inspection Service Tip Line at 877-876-2455.

BEAUMONT, Texas – A 28-year-old Port Arthur, Texas man has been sentenced to 15 years in federal prison for child exploitation violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

               Cesar Estuardo Hernandez-Cruz pleaded guilty on Aug. 5, 2015, to production of child pornography and was sentenced to 180 months in federal prison on Jan. 6, 2016 by U.S. District Judge Marcia A. Crone.

               According to information presented in court, in August 2014, Hernandez-Cruz attended a funeral where he met a 12-year-old minor.  Afterwards, he found the child’s profile on the social media site, Facebook and began communicating online.  Hernandez-Cruz persuaded the child to send him nude photos and asked the minor to meet him for sex.  The victim did send Hernandez-Cruz photos but refused to meet in person.  Federal agents recovered the sexually explicit photos that Hernandez-Cruz persuaded the child to produce.  Hernandez-Cruz was indicted on June 3, 2015 and charged with child pornography violations. 

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

            This case was investigated by Homeland Security Investigations and prosecuted by Assistant U.S. Attorneys Lesley A. Bartow and Randall L. Fluke.

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BEAUMONT, Texas – A former Beaumont Independent School District (BISD) Assistant Superintendent pleaded guilty today to federal charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

            Patricia Adams Lambert, 61, of Beaumont, pleaded guilty to theft concerning programs receiving federal funds and conspiracy to submit false statements concerning standardized test scores today before U.S. District Judge Thad Heartfield.

            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. 

            Pursuant to the plea agreement, Lambert faces up to 40 months in prison.    Lambert’s sentence will be imposed by Judge Heartfield based upon U.S. Sentencing Guidelines, other statutory factors, and evidence to be presented at a sentencing hearing.  A sentencing date has not been set.  Codefendant, Victoria Gauthier Steward, 31, of Lake Charles, LA, pleaded guilty on Dec. 23, 2015 to conspiracy to make false statements, related to the manipulation of BISD test scores and faces up to five years in federal prison. 

            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 is being prosecuted by Assistant U.S. Attorneys Christopher T. Tortorice and Joseph R. Batte.

BEAUMONT, Texas – A former Beaumont Independent School District (BISD) teacher has pleaded guilty to federal charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

    Victoria Gauthier Steward, 31, of Lake Charles, LA, pleaded guilty in federal court today to a charge of conspiracy to make false statements.  Steward was indicted in February, 2015, along with her co-defendant, Patricia Lambert.

    According to information presented in Court, Steward was employed by BISD starting in 2007 as a math teacher, and was assigned to the Central Medical Magnet High School (CMMHS) under Principal Patricia Lambert.  Soon after beginning at CMMHS, Lambert created the position of “numeracy coach,” for Steward, where Steward provided instructional support for the teachers, although she was still designated as a teacher by BISD.  During that time, Steward was assigned various roles related to the administration of standardized tests.  Specifically, Steward was assigned to oversee testing of students in large groups.  Between 2007 and 2012, Steward signed multiple Oaths of Test Security, in which she affirmed that she “complied with all the requirements governing the State Assessment Program and that [she] reported any suspected violations of test security or confidentiality to the campus testing coordinator.  However, as Steward was well aware, teachers routinely manipulated standardized test scores by various methods.  For example, witnesses would testify that teachers would aggregate large numbers of tests and then erase and change incorrect answers to correct answers after students turned in 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.  Steward was aware of the fact that teachers were changing answers on a state mandated TAKS test in April of 2011.  Steward was aware that Patricia Lambert also knew that teachers were improperly changing students’ answers.  Nonetheless, at Lambert’s direction, Steward was provided with an Oath of Test Security in April and May of 2011, which Steward knew to be false.

    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. 

    Steward faces a sentence of not more than five years in prison, a fine not to exceed $250,000, and a term of supervised release of not more than three years.  She could also be ordered to pay restitution in an amount determined by the Court.  A sentencing date has not been determined.

    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 is being prosecuted by Assistant U.S. Attorneys Christopher T. Tortorice and Joseph R. Batte.

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Plano, Texas – A Princeton, Texas man has been sentenced for identity theft and mail fraud violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

Johnny Lee Allie, 44, had pleaded guilty in federal court on June 18, 2015 to one count of aggravated identity theft and one count of mail fraud.  Allie was sentenced last month to a 61- month federal prison term by United States District Judge Marcia Crone.

According to information presented in Court, Allie owned, operated and controlled AMO-PS Limited, located in Allen, Texas, and prepared income tax returns as part of his business.  In 2012, Allie devised a scheme to defraud the Internal Revenue Service by filing a false income tax return for the year 2010 in the name of his clients without their knowledge.  The tax return, which generated a refund of $26, 523.36, contained fraudulent items such as false business income and expenses, and credits for child care expenses.  Allie created fake information indicating that the clients had gross receipts of $493,100.00 and net profit of $51,362.00.

Allie also forged his clients’ signatures and used his own business address rather than the clients’ home address on the tax return, so the IRS would mail any refund checks to Allie’s office at AMO-PS Limited.  He used his clients’ names, dates of birth, and Social Security numbers to open an account at Bank of Texas, into which he deposited the fraudulent refund check.  Allie then wrote several checks, made payable to himself,  forging the clients’ signatures in order to withdraw the refund money. 

As part of his plea agreement with the Government, Allie agreed to pay restitution in the amounts of $19,081.01 to his victims, and $4125.00 to the IRS.  He began his prison sentence immediately after the sentencing hearing.

This case was investigated by the Internal Revenue Service – Criminal Investigation, and was prosecuted by Assistant U.S. Attorney Christopher A. Eason.

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BEAUMONT, Texas – U.S. Attorney John M. Bales announced today that two residents of Jasper, Texas, along with a resident of Houston, Texas, have been charged with federal violations in the Eastern District of Texas.   

Walter Diggles, 62, Rosie Diggles, 61, and Anita Diggles, 39, were indicted on December 2, 2015, and jointly charged with conspiracy to commit wire fraud.  In addition, Walter Diggles was charged individually with eleven counts of wire fraud, two counts of theft from a program that receives federal funding, and three counts of money laundering (engaging in monetary transactions with money derived from unlawful activity).  Rosie Diggles was also individually charged with ten counts of wire fraud and with one count of money laundering (engaging in monetary transactions with money derived from unlawful activity). Additionally, the indictment includes a notice of forfeiture stating that the Government is seeking to forfeit over $1.3 million from the defendants.   

According to information presented in court, the defendants are alleged to have devised a scheme to obtain and make personal use of federal block grant funds that Congress appropriated following Hurricanes Rita, Katrina, Ike, and Dolly.  The indictment alleges that these funds were made available to the State of Texas, which in turn contracted with several councils of governments within the state to assist in administering and distributing the funds. Walter Diggles is the Executive Director of the Deep East Texas Council of Governments, and the Indictment alleges that he made use of his position to approve inflated requests for reimbursement of federal block grant funds and that Rosie Diggles and Anita Diggles prepared many of the requests.  The indictment also alleges that Walter Diggles individually engaged in activities and approved requests for block grant funds that were fraudulent in nature and that all of the defendants spent the excess funds on personal expenses.

            The defendants had initial appearances before U.S. Magistrate Judge Keith Giblin today.  They each face up to 30 years in federal prison if convicted of the charges. 

            It is important to note:  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.

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

PLANO, Texas – A Denton County, Texas, nurse has been convicted of 9 counts of health care fraud in the Eastern District of Texas, announced U.S. Attorney John M. Bales today. 

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 late Friday evening following a four day trial before U.S. District Judge Marcia A. Crone.

 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.

Kroma faces up to 10 years in federal prison for each health care fraud conviction.  A sentencing date has not been set.

 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)

BEAUMONT, Texas –Two Southeast Texas women have been sentenced to federal prison in connection with an income tax return scheme in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

Stasha Franchell Anderson, 34, of Jasper, Texas, pleaded guilty on July 1, 2015 to aiding in the preparation of a false tax return and was sentenced to 36 months in federal prison today by U.S. District Judge Marcia Crone.  Jessica Bellis, 43, of Baytown, Texas, pleaded guilty on July 9, 2015 to conspiracy to commit wire fraud and was sentenced to 30 months in federal prison today by Judge Crone. 

According to information presented in court, Derek Cornelius Briscoe, 36, held himself out as a tax preparer sometimes doing business as “Thaferrets Tax Service” from his residence in Jasper, Texas.  Briscoe maintained contacts with the female inmates at the Jefferson County Jail in Beaumont, Texas.  Briscoe offered those inmates a fee in exchange for personally identifying information of other inmates that could be used to facilitate the filing of false tax returns.  Anderson and Bellis were inmates who supplied Briscoe with the personally identifiable information of other inmates to file false tax returns.  The two women emailed or telephoned Briscoe to give him the inmates’ personal information, which was then used to electronically file fraudulent tax returns for the years 2009, 2010, and 2011. The false tax returns consisted of fictitious employment information, income, and deductions for educational expenses. The refunds were deposited in bank accounts controlled by Briscoe. Briscoe was previously sentenced for his part in the scheme. During times when Anderson was not incarcerated, she also aided Briscoe in the preparation of the false tax returns. Anderson, Bellis, and Briscoe were involved in the preparation of over 500 false tax returns.

Briscoe was sentenced to 57 months in federal prison on Nov. 19, 2015.  Additionally, Anderson was ordered to pay restitution of $156,519 to the IRS while Bellis was ordered to pay restitution in the amount of $30,000.  Both women are jointly and severally liable for $1,127,193 in total restitution along with defendant Briscoe.    

This case was investigated by Internal Revenue Service-Criminal Investigation and prosecuted by Assistant U.S. Attorney Lesley Anne Bartow. 

BEAUMONT, Texas – A 29-year-old Dayton, Texas man has been convicted of two counts of kidnapping in the Eastern District of Texas, announced U.S. Attorney John M. Bales today. 

Wayne Ross Maitland was found guilty by a jury of two counts of kidnapping today following a three-day trial before U.S. District Judge Marcia A. Crone. 

According to information presented in court, on Oct. 31, 2014, Maitland contacted his recently estranged wife to set up a meeting with her to discuss issues related to their potential divorce, including taking her to a bank to remove her name from their joint account.  His estranged wife and her 11-month-old son, Maitland’s stepson, got in the car with Maitland and went to the bank.  On the way back from the bank, Maitland drove to a county road, pulled over to the roadside, wrapped his estranged wife’s hands in duct tape and would not allow her to exit the vehicle.  Maitland told her that he intended to commit suicide and force her to watch.  She attempted to exit the moving vehicle, but the defendant grabbed her by the hair, choked her and punched her in the head several times.  During the struggle, Maitland pulled a large segment of hair from her scalp and caused bruises to her head and face.  Eventually she was able to jump from the vehicle while it was traveling approximately 40 miles per hour, which caused her to sustain further injuries, including “road rash” on her arms, back, and feet.  Maitland then stopped the vehicle, got out and told his estranged wife, “I’ve got your son now” and then drove off.  Maitland drove around for approximately eight hours before dropping the child off at a hospital in New Iberia, Louisiana.   On Nov. 11, 2014 deputies with the Liberty County Sheriff’s Office received a tip regarding Maitland’s whereabouts.  Acting on that tip, deputies executed an arrest warrant on a home in rural Liberty County, where Maitland was found hiding in an air conditioning duct.  Maitland was charged by a federal grand jury on Dec. 3, 2014.  

Maitland faces a minimum of 20 years and up to life in federal prison at sentencing.  Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.  A sentencing date has not been set.

The case was investigated by the Federal Bureau of Investigation, Texas Rangers, Liberty County Sheriff’s Office and the Dayton Police Department and prosecuted by Assistant U.S. Attorneys Christopher T. Tortorice and Lesley Bartow. 

BEAUMONT, Texas – A 25-year-old Beaumont, Texas man has been sentenced to federal prison for a fatal carjacking in the Eastern District of Texas, announced U.S. Attorney John M. Bales today. 

Jonathan Demond Patton pleaded guilty on Aug. 11, 2015 to carjacking resulting in death and was sentenced to 40 years in federal prison today by U.S. District Judge Thad Heartfield.  This sentence will run consecutive to a state prison sentence he is already serving.         

          According to information presented in court, early on the morning of June 23, 2013, Patton and River Shynette Gobert entered a self-service laundry on Florida Avenue in Beaumont intending to rob the sole occupant.  When the victim refused to hand over his car keys, Gobert shot him in the leg at Patton’s direction.  Patton and Gobert fled the laundry in their vehicle without the victim’s keys.  They drove by an apartment complex on Woodrow Avenue where they encountered Daryl Dwayne Fontenot asleep in his vehicle.  A struggle ensued when Patton and Gobert attempted to steal the vehicle and Fontenot was shot twice in the chest killing him.  Patton and Gobert fled in their vehicle after they were unable to locate Fontenot’s keys.  A short time later, law enforcement officers stopped Patton and Gobert because their vehicle matched the vehicle reported in the self-service laundry shooting.  Patton and Gobert fled the vehicle but left the weapon used to shoot the two men behind.  Patton and Gobert were arrested and each gave statements indicating the other was responsible for the shootings.  On Sep. 23, 2013, a Jefferson County grand jury indicted Patton and Gobert for the self-service laundry shooting.  Gobert pleaded guilty and was sentenced to seven years in state prison.  Patton pleaded guilty and was sentenced to 10 years in state prison.  On Mar. 5, 2015, a federal grand jury indicted Patton and Gobert charging them for the carjacking murder of Fontenot.

Gobert is set for sentencing in federal court on Feb. 2, 2016. 

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

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

TYLER, Texas – A 43 year old Carthage, Texas man has been sentenced to federal prison for conspiring to distribute over 50 kilograms of marijuana that was stolen from the Tenaha City Marshal’s Office in 2010 announced U.S. Attorney John M. Bales todayU.S. Attorney John M. Bales today. 

Roderrete Dewrayne McClure (McClure) pleaded guilty on March 6, 2015, to Conspiracy to Distribute Marijuana and was sentenced to 56 months in federal prison today by U.S. District Judge Michael H. Schneider.  According to information presented in court, sometime before August 22, 2010, McClure and a confederate removed over fifty (50) kilograms of marijuana from the Tenaha City Marshal’s Office evidence room.   Fire starter logs were substituted to cover the taking of the marijuana.  On August 17 and 19, 2010, McClure took digital images of the stolen marijuana and transmitted them to   person identified only as (T.F.) in order to facilitate the sale of the drugs in the Dallas area. In July 2010, McClure provided some of the stolen marijuana to another person, identified as K.M., to sell in the area of Shreveport, Louisiana. McClure admitted that he received payments in exchange for the marijuana.          

            This case was investigated by the F.B.I. Tyler Office and the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives, Tyler Office and prosecuted by Assistant U.S. Attorney Jim Noble.

TYLER, Texas – A 64-year-old former insurance agent has pleaded guilty to wire fraud and money laundering in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

Robert B. Hahn, of Tyler, pleaded guilty to an information charging him with wire fraud and money laundering on Nov. 19, 2015 before U.S. Magistrate Judge John D. Love.

           According to information presented in court, from January 2007 to February 2015, Hahn devised and executed a scheme in which he claimed to represent 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 led approximately 100 potential investors to believe this group of doctors would pay an annual interest rate of 20% on their loans or investments.  Hahn then collected funds from these individuals and deposited them into his insurance business or personal checking accounts.  Hahn would periodically make “interest” payments, in cash, to said individuals, representing a 20% return on said fictitious loans or investments, utilizing funds he had derived from earlier investors.  Upon request, Hahn would return principle loan or investment funds to said individuals 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 in truth and in fact, there never was a group of doctors raising capital for debt retirement, construction of, or improvements to, health care facilities, and medical equipment purchases.  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 individual investors.  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”. 

                Hahn faces up to 20 years in federal prison at sentencing.  A sentencing date has not been set. 

            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.

PLANO, Texas — A 31-year-old Plano schoolteacher has been arrested on child exploitation charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

           Keith Oser, a 5th grade teacher at Legacy Charter School in Plano, was arrested on Friday, Nov. 13, 2015, and appeared today before U.S. Magistrate Judge Don D. Bush for an initial appearance. 

           Oser has been charged in a federal complaint with distribution of child pornography.  Oser will return to court on Nov. 24, 2015 for detention and preliminary hearings.  

           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.

           If you have any information on this case, please contact Victim-Witness Coordinator Judy Daigle at the U.S. Attorney’s Office at 1-800-804-3547.  The U.S. Attorney’s Office will take the necessary steps to protect all minors’ identities and confidential information. 

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

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

SHERMAN, Texas – A 47-year-old former resident of Bonham, Texas, was sentenced to federal prison for operating a currency trading scheme in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

Frank Edwin Pate was found guilty by a jury on May 26, 2015, of two counts of wire fraud and one count of mail fraud following a five-day trial before U.S. District Judge Amos Mazzant.  Pate was sentenced to 210 months in federal prison today by Judge Mazzant.  Pate was also ordered to pay restitution in the amount of $2,829,589.84.

According to information presented in court, Pate perpetrated a fraud scheme on seven individuals who invested money with Pate for the purpose of trading foreign currency on their behalf. Pate’s scheme caused investors to invest over $3.4 million over a several year period for the purpose of currency trading.  Instead of using the money for foreign currency trading, Pate spent a large portion of the money for his own personal expenses.  Pate was indicted by a federal grand jury on Aug. 13, 2014.

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

PLANO, Texas – A 37-year-old Denton, Texas 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.

Joe Edward Cummings pleaded guilty on Sep. 16, 2015, to transporting child pornography in interstate commerce and was sentenced to 151 months in federal prison today by U.S. District Judge Marcia A. Crone.

According to information presented in court, in September 2014, the Texas Rangers and the Justin Police Department initiated an investigation when the social media platform Twitter reported to the National Center for Missing and Exploited Children that an individual using a computer in Cummings’ residence had posted child pornography on Twitter.  Law enforcement obtained and executed a search warrant at Cummings’ house on Oct. 1, 2014.  At that time, officers seized a number of digital devices, including a computer tablet belonging to Cummings.   Forensic agents located child pornography on Cummings’ tablet during a forensic review of the seized digital media.  As the investigation continued, officers discovered that Cummings, who was then a sworn peace officer with the Denton County Sheriff’s Office, had transported child pornography onto an online file hosting service for cloud storage, as well as through other social media platforms and online communication services.

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

            This case was investigated by the Federal Bureau of Investigation, Texas Department of Public Safety – Texas Rangers, and the Justin, Texas Police Department, and prosecuted by Assistant U.S. Attorney Marisa J. Miller. 

TEXARKANA, Texas – U.S. Attorney John M. Bales announced today the arrest of multiple individuals indicted for drug trafficking violations in the Eastern District of Texas.

Arrests were made on Oct. 27, 2015 as part of Operation Flashback, a two-year joint federal and state investigation into individuals responsible for mid- and high-level trafficking and distribution of methamphetamine through the Eastern District of Texas as well as to Arkansas, Louisiana, and Tennessee.  The defendants are alleged to have been responsible for trafficking and distributing more than 1,000 kilograms of methamphetamine through the I-30 corridor, to Northeast Texas, Southwest Arkansas, and beyond.  A federal grand jury returned a sealed 43-count indictment on Sep. 16, 2015 charging the following individuals with drug trafficking violations:

Jeffrey George, Jr., 29, of Texarkana, Texas; Joshua Thompson, 35, of Hot Springs, Arkansas; Kyle Davis, 29, of Texarkana, Arkansas; Demetrice Dornell Mullens, 25, of Texarkana, Texas; James Neal Byrd, 25, of Texarkana, Arkansas; Shawna Marie Seifert, 34, of Texarkana, Texas; Stacy Childs, 25, of Hot Springs, Arkansas; Stephanie Martinez, 33, of Hot Springs, Arkansas; Pablo Martinez, 39, of Royal, Arkansas; Dondrail Parks, 31, of Texarkana, Arkansas; Billy Krimmel, 36, of Gould, Arkansas; Lloyd Guedel Jones, Jr., 30, of Texarkana, Texas; Jay Dee Doolin, 53, of Hooks, Texas; Whitney Ann Smith, 52, of Texarkana, Texas; Mica Crumpton-Smith, 35, of Texarkana, Arkansas; Eliasar Mata, 31, of Dallas, Texas; Gary Don Sandlin, 58, of Texarkana, Texas; Roddis Faust, 28, of Texarkana, Texas; Michael Shane Spencer, 42, of Texarkana, Texas; Veronica Zuniga Rodriguez, 32, of Texarkana, Texas; April Michaelle Wright, 24, of Texarkana, Texas; Charles Randall Porter, 59, of Wake Village, Texas; Kenneth Wayne Milner, 42, of Texarkana, Arkansas; Jamilu Whiteside, 38, of Nash, Texas; Matthew Ray Thompson, 28, of Texarkana, Arkansas; Shauna Michelle Erwin, 37, of Wake Village, Texas; Sam Rich, 47, of Tyler, Texas; Kimberly Denise Unholz, 46, of Texarkana, Texas; Jeanna Renea Watson-Patterson, 30, of Nash, Texas; Daniel Garrett , 27, of Texarkana, Arkansas; and
Sheena Geneene McClendon, 30, of Texarkana, Texas.

            This case is the result of an extensive two-year joint investigation by the Federal Bureau of Investigation, Texas Department of Public Safety Criminal Investigation Division, and Texarkana, Texas, Police Department; with the assistance of the U.S. Drug Enforcement Administration; U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; U.S. Marshals Service; Texarkana, Arkansas, Police Department; the Bowie County (Texas) and Miller County (Arkansas) Sheriff’s Offices; the U.S. Attorney’s Office for the Western District of Arkansas; and the District Attorney’s Offices of Bowie County (Texas) and Miller County (Arkansas).  During the course of this operation, agents have successfully arrested approximately 75 individuals and seized approximately six pounds of methamphetamine, large amounts of marijuana, more than $35,000 in U.S. currency, one vehicle, approximately 45 firearms, and more than 10,000 rounds of ammunition.

            The investigation has led to additional arrests in the Northern District of Texas (Dallas area), including more than 16 additional defendants and the seizure of more than two kilograms of methamphetamine.  

These cases are being prosecuted by Assistant U.S. Attorneys Ryan Locker and Paul Hable.

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.

BEAUMONT, Texas – A military contractor has been levied with a monetary judgment for accepting gifts and gratuities from sub-contractors, announced Eastern District of Texas U.S. Attorney John M. Bales today.

On Oct. 15, 2015, Kellogg Brown & Root, Inc. (KBR) was ordered to pay a final judgment of $108,342.10 to the United States by U.S. District Judge Marcia Crone.

According to court documents, KBR, a Delaware corporation with its principal place of business in Houston, violated provisions of the Anti-Kickback Act, 41 U.S.C. § 8706, when KBR employees improperly accepted gifts and gratuities, including expensive dinners, golf outings and event tickets from various sub-contractors while KBR was providing logistic services to the United States Army Operations Support Command contract known as LOGCAP III.  LOGCAP III was awarded to KBR for the provision of logistical support to the Army in Iraq and Afghanistan.  Final judgment was ordered following a four-day bench trial in June 2015.

The kickbacks first came to light during an investigation of fraudulent billings in another case.  At that time it was revealed that from 2003 to 2005, several managers in the KBR traffic department had accepted illegal benefits from two subcontractors, Eagle Global Logistics EGL and Panalpina, Inc.  Both subcontractors previously settled claims for kickback violations without admitting liability.

“The business of paying and accepting kickbacks to gain or keep government business is an age-old practice, but it is an obnoxious one and a violation of the trust that companies and individuals should be held to when doing business on behalf of the nation,” said U.S. Attorney Bales.  “The Court’s verdict underscores that principal and we commend and celebrate its judgment.  The United States Attorney’s office will remain vigilant to detect and to prosecute future violations – there will be zero tolerance for any kickbacks.”

The case was investigated by the Federal Bureau of Investigation and Defense Criminal Investigative Services.  The case was prosecuted by Samuel Buffone, Kelley Hauser and Glenn Harris from the Department of Justice, Civil Division, and Michael Lockhart, Assistant U.S. Attorney for the Eastern District of Texas.

BEAUMONT, Texas – A 59-year-old Orange, Texas man has been indicted on federal drug trafficking charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

                Grover Lee Roberts was indicted on Oct. 7, 2015 and charged with conspiracy to possess with intent to distribute crack cocaine.  Roberts was arrested in Orange today on those charges.

                According to the indictment, since 2008, Roberts conspired with others to distribute more than 28 grams of crack cocaine from his residence on South Hart Avenue in Orange, Texas. 

If convicted, Roberts faces up to 40 years in federal prison.

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

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.

LUFKIN, Texas – A 47-year-old Lufkin, 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.

Phil Bernard Lewis pleaded guilty on Dec. 17, 2014, to conspiracy to distribute and to possess with intent to distribute cocaine and was sentenced to 300 months in federal prison on Oct. 9, 2015 by U.S. District Judge Michael H. Schneider. 

                According to information presented in court, from 2011 to October 2014, Lewis conspired with others to distribute more than five kilograms of cocaine from Mexico to customers in the United States, including Lufkin, Texas.  Much of the cocaine was converted to crack cocaine.  Lewis personally received shipments of cocaine from a supplier on a weekly basis and transported it to Lufkin.  Once in Lufkin, Lewis stored the cocaine and crack cocaine at several locations in Lufkin including houses on Dale Street, Booker Street, and East Texas Road, until the drugs were distributed to dealers for trafficking in the area.  Lewis was indicted by a federal grand jury on Oct. 1, 2014 and charged with drug trafficking violations.

                This case is the result of an Organized Crime Drug Enforcement Task Force (OCDETF) joint investigation, Operation Fowl Play.  The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. 

                This case was investigated by the U.S. Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, Angelina County Sheriff’s Office, Angelina County Constable Tom Selman, Precinct 1, Nacogdoches County Sheriff’s Office, the Nacogdoches Police Department, and the Lufkin Police Department. This case was prosecuted by Assistant U.S. Attorney Baylor Wortham.

TYLER, Texas - U.S. Attorney John M. Bales announced today that two Athens, Texas residents have been sentenced for their role in the smuggling of imitation, unapproved and misbranded prescription drugs from China.

Tom Giddens, 57, and Wanda Hollis, 63, were each sentenced to serve 15 months in prison by U.S. District Court Judge Michael H. Schneider.  In April 2015, they each pleaded guilty to one count of conspiracy to smuggle the drugs into the United States.  A third defendant, Catherine Nix, 42, also of Athens, will be sentenced at a later date.

In 2009, the defendants smuggled at least 43 known shipments, totaling approximately 106,000 pills, from China to Texas.  The shipments contained unapproved, bogus versions of several U.S. Food and Drug Administration (FDA)-approved drugs that, because of the health and safety risks associated with their use, require valid prescriptions to dispense.  The prescription drugs seized included: Xanax®; Valium®; sibutramine; Cialis®; Viagra®; and, Stilnox®, marketed in the United States as Ambien®.  None of the pills that were seized and tested were legitimate.  Some were sub-potent, but most contained entirely different active ingredients from the legitimate, approved versions.  The defendants also attempted to conceal their smuggling by using shipping labels that misrepresented the contents of their shipments, including customs declarations falsely describing the contents as “gifts” or “toys” with low declared monetary values, and by using multiple addresses in an effort to reduce the likelihood of seizures by U.S. Customs and Border Protection authorities.

“Consumers of prescription drugs need to know that what they are buying is legitimate, safe, and approved,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division.  “This illegal operation introduced over 100,000 bogus pills into the stream of commerce, potentially posing a huge public health and safety risk.  Consumers should know that the drugs they are buying are exactly what they appear to be, and not false versions of name-brand products that could ultimately do them more harm than good.”

“This office remains committed to stemming the increasing flood of illegitimate prescription drugs that come into East Texas,” said U.S. Attorney John M. Bales of the Eastern District of Texas.  “This case puts the very real, inherent dangers of counterfeit prescription drugs on full display.  These pills looked almost exactly like their legitimate counterparts, but lacked any of the safety or efficacy of the legitimate versions.”

“FDA’s laws are in place to ensure that consumers have access to safe and effective prescription drugs,” said Director George M. Karavetsos of the FDA’s Office of Criminal Investigations.  “Those who evade those laws risk harming the public’s health.  We will continue to work with our law enforcement partners to keep the U.S. marketplace free of illegitimate medical products.”

This case was investigated by the FDA-OCI and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.  The case was prosecuted by Assistant U.S. Attorney Allen Hurst of the Eastern District of Texas and by Trial Attorney John W.M. Claud of the Department of Justice, Civil Division’s Consumer Protection Branch.

MARSHALL, Texas – Two Longview, Texas men have pleaded guilty to their involvement in a Daingerfield Bank Robbery announced U.S. Attorney John M. Bales today.           

          Latarious Martez Hughes, 21, and Kenneth Duane Hooks, 23, both pleaded guilty today in U.S. Magistrate Roy Payne’s court to their involvement in the armed bank robbery of the 1st National Bank of Hughes Springs, Daingerfield Branch on February 27, 2015.  A federal grand jury indicted the two men for robbery on March 18, 2015.          

          Hughes admitted that he entered the bank with a bandana over his face, brandished a pistol, and pointed the pistol at one of the tellers.  Hughes then handed a mesh bag to the teller and instructed her to put money in the bag. The teller complied and put $53,654.00 in the bag and returned the bag to Hughes.  Hughes then fled the bank, with the cash, on foot.

Hooks admitted that, following the bank robbery, he drove Hughes, in Hooks’ vehicle, from Daingerfield to Hooks’ residence in Longview, Texas, where the pair were residing together.   At approximately 1:30 p.m. that afternoon, F.B.I. agents arrived at Hooks’ residence.  The agents advised Hooks of the bank robbery and questioned him about it.  Hooks denied that he had been in Daingerfield on the day of the robbery, which was false.  Hooks claimed that he had traveled to Mount Pleasant, Texas on the morning of the robbery, which was also false.  Hooks further claimed that he had not seen Hughes on the morning of the bank robbery, which was also false. Hooks admitted that he made the false statements to the F.B.I. to assist Hughes in order to hinder or prevent Hughes’ apprehension.

           All but $7,566.00 of the stolen cash was recovered from Hughes and Hooks’ residence. Both men will be required to repay the missing $7,566.00 to the bank.                        

            Hughes is facing up to twenty-five years in prison and a $250,000.00 fine.  Hooks is facing up to twelve and one half years in prison and a $125,000.00 fine.  A sentencing date for the pair has not been set.

            This case was investigated by the Daingerfield Police Department, the Longview Police Department, and the F.B.I., Texarkana Office, and prosecuted by Assistant U.S. Attorney Jim Noble.

LUFKIN, Texas – A 41-year-old man from Milwaukee, Wisconsin has been convicted on federal drug and money trafficking charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales.             

Henry Korvett Bams, of Milwaukee, Wisconsin, was found guilty by a jury today after a three day trial before the Honorable Michael H. Schneider.  Bams was found guilty of conspiracy to possess with the intent to distribute cocaine in an amount of five kilograms or more and use of an interstate facility in aid of racketeering. 

Bams and his co-defendant, Frederick Mitchell, were indicted on September 3, 2014.  On Sunday, July 6, 2014, Bams and Mitchell were stopped for a traffic violation by the Texas Department of Public Safety while traveling southbound on US Highway 259 in Nacogdoches County, Texas.  The officer eventually conducted a search of the vehicle and seized approximately $253,341 in cash and a small quantity of marijuana.  Following an arrest on state charges, both men were released when the charges were dismissed.  In addition, the Nacogdoches County District Attorney’s office returned all but $100,000 of the seized currency to Bams and Mitchell.  On July 22, 2014, Bams and Mitchell were stopped for a traffic violation by Arkansas State Police in Hot Springs County, Arkansas, on Interstate Highway 30.  The officer received consent to search the vehicle and discovered approximately ten kilograms of suspected cocaine located inside hidden compartments within the vehicle.  Two bank deposit slips were also discovered within the vehicle.  On Aug. 1, 2014, agents with the Internal Revenue Service and the Drug Enforcement Administration executed a seizure warrant on the bank account referenced in the deposit slips and seized approximately $135,015.14 in drug proceeds.

Mitchell pleaded guilty to the charges on January 7, 2015 and was sentenced to a term of imprisonment of 84 months on April 9, 2015.

Bams faces a minimum of 10 years to life in federal prison for the drug distribution violation and up to five years for the interstate transportation in aid of racketeering violation.  A sentencing date has not been set.

This case is being investigated by the Internal Revenue Service-Criminal Investigation, the U.S. Drug Enforcement Administration, Milwaukee, Wisconsin District Office, the Federal Bureau of Investigation, and the Texas Department of Public Safety, and is being prosecuted by Assistant U.S. Attorneys Baylor Wortham and Lauren Gaston.

PLANO, Texas –  A 29-year-old Granbury, Texas man has been charged with federal drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales  today.

                John Christopher Esparza was indicted by a federal grand jury on Sep. 10, 2015 and charged with conspiracy to distribute and possession with intent to distribute oxycodone.  Esparza appeared before U.S. Magistrate Judge Don D. Bush on Sep. 24, 205, and was ordered to be detained until trial.

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 is alleged to have illegally sold large quantities of oxycodone to an informant.  During the investigation it was revealed that a review of the pharmacy’s inventory records suggests that a large amount of oxycodone with a street value of approximately $2.9 million was unaccounted for. 

If convicted, Esparza faces up to 20 years in federal prison.  A trial date has not been set.

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 is being prosecuted by Assistant U.S. Attorneys in the Eastern District of Texas.

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

TYLER, Texas — Law enforcement officers in East Texas have arrested multiple individuals charged in a Medicare fraud scheme in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

On Sep. 16, 2015, a federal grand jury returned an 18-count indictment charging 12 individuals associated with Three Angels Home Health Inc., in a scheme to defraud Medicare by recruiting East Texas Medicare recipients who were not eligible, or did not necessitate the need, for home health care services.  Law enforcement officers began arresting the defendants today.

According to the indictment, an investigation revealed that between August 2013 and November 2014, the defendants were involved in a scheme to defraud Medicare of approximately $2.5 million for home health services allegedly provided to about 250 East Texas Medicare patients.  These patients were from Tyler, Jacksonville, Marshall, Nacogdoches, Lufkin, and other areas.  The indictment alleges the defendants worked as recruiters for Grace Munthali and her company, Three Angels.  The defendants were paid approximately $500 for each Medicare beneficiary they signed up to receive home health care services from Three Angels.  To encourage the patient’s participation, the defendants offered and paid them from $100 to $200 each.  Those charged in the indictment include:

Lizzy Sirls, 33, of Cuney, Texas;

Katrina Watts, 38, of Lufkin, Texas;

Pandra Wade, 55, of Lufkin, Texas;

Victoria Sterns, 40, of Lufkin, Texas;

Tammy Washington, 51, of Nacogdoches, Texas;

Nichelle Fofana, 51, of Nacogdoches, Texas;

Yulanda Nash, 44, of Nacogdoches, Texas;

Ronald Russell, 51, of San Augustine, Texas;

Sheneki McCollister, 39, of Center, Texas;

Meoshe Goodwin, 42, of Tenaha, Texas;

Latosha Gray, 26, of Jacksonville, Texas; and

Marcus Chukwu, Jr., 52, of Sugarland, Texas.

If convicted, the defendants face up to five years in federal prison for the conspiracy to commit health care fraud charge and up to five years for each of the payment of illegal remuneration charges.

Earlier this year, Munthali pleaded guilty to health care fraud charges and was sentenced to 5 years in federal prison on Sep. 22, 2015.

This case is being investigated by the U.S. Health and Human Services Office of Inspector General and the Texas Attorney General’s Medicare Fraud Control Unit with assistance from the Federal Bureau of Investigation.  This case is being investigated by Special Assistant U.S. Attorney Kenneth McGurk and Assistant U.S. Attorney Nathaniel C. Kummerfeld.  

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

TYLER, Texas – A 33-year-old Tyler, Texas registered sex offender has been sentenced to federal prison for child exploitation violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

Anthony Nelson pleaded guilty on Nov. 10, 2014, to transportation of minors and was sentenced to 276 months in federal prison today by U.S. District Judge Michael H. Schneider.

According to information presented in court, in November and December of 2013, Nelson was assisted by others in transporting individuals, including two minors, in interstate commerce with the intent that the individuals engage in prostitution.  During the investigation it was also revealed that Nelson was a registered sex offender having served eight years in the Texas Department of Corrections for the 2001 aggravated sexual assault of a minor in Smith County, Texas.  Nelson was indicted by a federal grand jury on Mar. 26, 2014, and charged with child exploitation violations.

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

“Anthony Nelson is on his way to prison where he will serve a very long sentence of imprisonment,” said U.S. Attorney Bales.  “He deserves every day of that lengthy term and I hope that every day he is consumed with guilt and self-recrimination.  There is no more important work for the U.S. Attorney’s office than to protect and come to the aid of those who cannot protect themselves.  Nelson and his ilk will always be squarely in our sights and for that reason, I commend the work of the prosecution team for putting a stop to Nelson and his outrageous conduct.”

“Our children are our most valuable resource,” said Katrina W. Berger, special agent in charge of HSI Dallas.  “As such, our special agents from Homeland Security Investigations operate an active program called Operation Predator to rescue victims, and identify and pursue prosecution against child predators.  We routinely work with our law enforcement partners to achieve these goals.”

            This case was investigated by Homeland Security Investigations (HSI), Louisiana State Police, Bossier Parish Sheriff’s Office, Shreveport Police Department, Longview Police Department, Smith County Sheriff’s Office, Tyler Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration, and the Smith County District Attorney’s Office.  This case was prosecuted by Assistant U.S. Attorney Nathaniel C. Kummerfeld.

TYLER, Texas – A 32-year-old Longview, 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.  

Christian Drew Ponce pleaded guilty on Apr. 9, 2015 to bank robbery and was sentenced to 105 months in federal prison today by U.S. District Judge Michael H. Schneider.  Ponce was also ordered to pay restitution in the amount of $11,620.00.

According to information presented in court, on Aug. 11, 2014, Ponce and three co-defendants devised and executed a scheme to rob the Austin Bank, Bar K Bank, in Longview, Texas.  Ponce was indicted by a federal grand jury on Aug. 27, 2014, and charged with bank robbery.  Ponce was immediately taken into custody following sentencing by the U.S. Marshals.

            This case was investigated by the Federal Bureau of Investigation, the Gregg County Sheriff’s Office and the Longview Police Department and prosecuted by Assistant U.S. Attorney Jim Middleton.

BEAUMONT, Texas — A 36-year-old Baltimore, MD man has pleaded guilty to child exploitation charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

Ian Christian Anderson pleaded guilty to enticement of a minor today before U.S. Magistrate Judge Zack Hawthorne.

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.

Anderson 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 is being investigated by the Federal Bureau of Investigation, the Lumberton Police Department and the Hardin County Sheriff’s Office.  This case is being prosecuted by Assistant U.S. Attorney Joseph R. Batte.

BEAUMONT, Texas – A 20-year-old Beaumont, Texas man has pleaded guilty to federal child exploitation charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

Keith Dwayne Marks, Jr. pleaded guilty to production of child pornography today before U.S. Magistrate Judge Zack Hawthorn.

According to information presented in court, on May 21, 2014, law enforcement officers in Grand Prairie, Texas, were notified by a school nurse that a 10-year-old student had come to the nurse’s office feeling ill after receiving a photo on an instant messaging app of a male’s genitals.  The student disclosed she had been communicating with the male through several instant messaging and internet video chats and that she knew him as Keith Marks from Beaumont, Texas.  It was determined that Marks was a registered sex offender due to a June 3, 2013 conviction for possession of child pornography in Jefferson County, Texas.  On Sep. 3, 2014, a search warrant was executed at Marks’s residence in Beaumont.  During the search, law enforcement officers discovered images and a video containing child pornography.  Further investigation enabled law enforcement officers to locate and identity of the 13-year-old child in those photos in the Houston area.  The child confirmed Marks had coerced them into engaging in sexually explicit conduct while filming such conduct with a cellular phone.  Marks was indicted by a federal grand jury on June 4, 2015.

Marks faces a minimum of 15 years and up to 30 years in federal prison.  A sentencing date has not been set.

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

This case is being investigated by Homeland Security Investigations (HSI), Beaumont Police Department, the Grand Prairie Police Department and the Pearland Police Department and prosecuted by Assistant U.S. Attorneys Randall L. Fluke and Marisa Miller.

SHERMAN, Texas – A 35-year-old Plano, Texas man has been sentenced to federal prison for defrauding investors in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

Thomas W. Lucas, Jr., was convicted on Feb. 13, 2015, of seven counts of wire fraud and one count of making a false statement to the FBI and was sentenced to 210 months in federal prison today by U.S. District Judge Amos Mazzant.  

According to information presented in court, from 2006 to 2010, Lucas devised and executed an elaborate scheme to defraud approximately 280 investors out of approximately $20 million by telling them he had insider information regarding a Walt Disney resort and theme parks planned for the North Texas area.  Lucas’s scheme to defraud solicited two types of investors – those that invested in options to purchase land supposedly near the Walt Disney property and those that actually purchased land supposedly near the Walt Disney property.  While information presented in Court showed tens of millions of dollars more were raised based on Lucas’s fraudulent Disney information, the value of the land purchased was subtracted to determine the overall loss amount of approximately $20 million.  The 65 investors that invested in options to purchase land lost all of their money invested, which was slightly over $8 million, and received no interest in land.    

According to Lucas, the Disney Resort and Theme Park was originally set to be called, “The King Ranch Project,” but that changed in 2007 to “Frontier Disney DFW,” both of which were completely fabricated.  Disney witnesses, including Disney’s then Chairman of Parks and Resorts and executive assistants, testified at the trial that the information presented to investors by Lucas was not authentic and that Disney never had any intentions of opening a Disney resort and theme park in north Texas at any time.  Lucas pocketed approximately $450,000 from fees and commissions gleaned from the various land deals closed on his fraudulent Disney information.  When confronted by the FBI about the scheme, Lucas falsely blamed the Disney information on a man he had previously met at a methadone rehabilitation clinic, who is now deceased.  Lucas was indicted by a federal grand jury on Sep. 11, 2013.

Lucas was also ordered to pay restitution in the amount of $8,456,360.00 to the investors who invested in options to purchase land, and was immediately remanded to the custody of the U.S. Marshals Service.

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

BEAUMONT, Texas – A 25-year-old Beaumont, Texas man has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

Jonathan Demond Patton pleaded guilty today before U.S. Magistrate Judge Keith F. Giblin to carjacking resulting in death.          

          According to information presented in court, early on the morning of June 23, 2013, Patton and River Shynette Gobert entered a self-service laundry on Florida Avenue in Beaumont intending to rob the sole occupant.  When the victim refused to hand over his car keys, Gobert shot him in the leg at Patton’s direction.  Patton and Gobert fled the laundry in their vehicle without the victim’s keys.  They drove by an apartment complex on Woodrow Avenue where they encountered Daryl Dwayne Fontenot asleep in his vehicle.  A struggle ensued when Patton and Gobert attempted to steal the vehicle and Fontenot was shot twice in the chest killing him.  Patton and Gobert fled in their vehicle after they were unable to locate Fontenot’s keys.  A short time later, law enforcement officers stopped Patton and Gobert because their vehicle matched the vehicle reported in the self-service laundry shooting.  Patton and Gobert fled the vehicle but left the weapon used to shoot the two men behind.  Patton and Gobert were arrested and each gave statements indicating the other was responsible for the shootings.  On Sep. 23, 2013, a Jefferson County grand jury indicted Patton and Gobert for the self-service laundry shooting.  Gobert pleaded guilty and was sentenced to seven years in state prison.  Patton pleaded guilty and was sentenced to 10 years in state prison.  On Mar. 5, 2015, a federal grand jury indicted Patton and Gobert charging them for the carjacking murder of Fontenot.

            Patton faces up to life in federal prison at sentencing.  A sentencing date has not been set.

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

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

BEAUMONT, Texas - A 53-year-old Warren, Texas man has been sentenced to prison for lying to federal agents in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.  

Anthony Welborn Jones pleaded guilty on Feb. 25, 2014, to making a false statement and was sentenced to 12 months in federal prison today by U.S. District Judge Ron Clark.  Jones was also ordered to pay restitution in the amount of $114,433.37.

According to information presented in court, Jones was hired by the non-profit organization, the Hardin County Disaster Recovery Alliance (HCDRA), as the primary residential-repair building contractor to assist victims suffering from damage caused by Hurricane Rita’s impact on the Texas Gulf Coast on Sep. 24, 2005.  An investigation revealed that Jones was paid for repairs to homes which he had not worked on or had never completed.  When questioned by federal agents, Jones denied having been paid for the work he had not done.  Jones was indicted by a federal grand jury on Nov. 28, 2012.  On Feb. 25, 2014, he admitted to making the false statements and pleaded guilty.

                This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorney Joseph R. Batte.

BEAUMONT, Texas – A 28-year-old Guatemalan man living in Beaumont, Texas has pleaded guilty to federal child exploitation charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

Cesar Estuardo Hernandez-Cruz pleaded guilty to production of child pornography on Aug. 4, 2015 before U.S. District Judge Marcia Crone.

According to information presented in court, on Dec. 4, 2014, law enforcement officers were notified by a parent that they had discovered sexually explicit photographs of their child.  The photographs had been taken by the child on a cellular phone and had been sent by text message to Hernandez-Cruz at his request.  Hernandez-Cruz admitted to knowing the child was only 12-years-old.  Hernandez-Cruz was indicted by a federal grand jury on June 3, 2015.

Hernandez-Cruz faces a minimum of 15 years and up to 30 years in federal prison.  A sentencing date has not been set.

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

            This case is being investigated by Homeland Security Investigations (HSI) and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney Randall L. Fluke.

BEAUMONT, Texas – A 31-year-old Houston woman has been sentenced for bringing prohibited drugs into a federal prison in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

Janet Tapia pleaded guilty on Apr. 28, 2015, to attempting to provide heroin to a federal inmate and was sentenced to 49 months in federal prison on July 29, 2015 by U.S. District Judge Ron Clark.

According to information presented in court, in August 2012, while monitoring inmate telephone calls and emails at the U.S. Penitentiary in the Federal Correctional Complex in Beaumont, officials discovered that a federal prisoner, Sultan Adnan Al-Bizri, arranged for Tapia to be supplied with heroin which she would then deliver to Al-Bizri during a regular prison visitation.  On Aug. 6, 2012, federal agents intercepted Tapia arriving at the prison visitation area with two balloons that contained heroin.  Tapia, Al-Bizri, and three others were indicted by a federal grand jury on Oct. 1, 2014.

Al-Bizri was sentenced to 55 months in federal prison on June 23, 2015.  Federal inmate Pedro Alejandro Ramirez was sentenced to 40 months in federal prison on May 14, 2015.  Federal inmate Donald James Bratton, Jr., was sentenced to 37 months in federal prison on June 11, 2015, while his father, Donald James Bratton, Sr., received three years federal probation.

                This case was investigated by the Drug Enforcement Administration and Bureau of Prisons, Special Investigations and prosecuted by Assistant U.S. Attorney Randall L. Fluke and Special Assistant U.S. Attorney Russell James.

TYLER, Texas – A 38-year-old Lake Charles, Louisiana, man has been convicted in a Nigerian mail fraud scheme in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

Heesham Broussard, also known as Sudan, was found guilty by a jury for conspiracy to commit mail fraud, two counts of mail fraud, and two counts of aggravated identity theft following a four day trial before U.S. District Judge Michael H. Schneider.

 According to information presented in court, Broussard participated in a Nigerian-based mail fraud scheme that distributed counterfeit postal money orders and checks.  The scheme targeted victims throughout the United States.  Victims of the scheme were led to believe that they were working as mystery shoppers.  Broussard served as a re-shipper or dispatcher of counterfeit postal money orders and checks.  As part of the scheme, he sent packages to more than 600 intended victims and sent counterfeit items bearing a face value of more than $1 million.  Broussard was indicted by a federal grand jury on Jan. 22, 2014.

Broussard’s co-conspirators, Olumide Lalemi, also known as Paul Smith, the Nigerian organizer of the scheme, and Victoria Williams, a re-shipper, have pleaded guilty to conspiracy to commit mail fraud.  Lalemi and Williams will appear before Judge Schneider for sentencing.  At sentencing, both defendants face up to 20 years in federal prison.

Broussard faces up to 20 years in federal prison for the conspiracy conviction, 20 years for each mail fraud conviction, and two years for each aggravated identity theft conviction.  A sentencing date has not been sent.

The case was investigated by Homeland Security Investigations (HSI), the U.S. Postal Inspection Service (USPIS), and U.S. Customs and Border Protection (CBP).  This case was prosecuted by Assistant U.S. Attorneys Nathaniel C. Kummerfeld and D. Ryan Locker.

Any individuals with knowledge of these or other mail fraud violations are encouraged to contact the Homeland Security Investigations Tip Line at 866-DHS-2-ICE (866-347-2423) or the U.S. Postal Inspection Service Tip Line at 877-876-2455.

BEAUMONT, Texas – A 45-year-old Galveston, Texas man has pleaded guilty to federal child exploitation charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

Jose Stephen Gracia pleaded guilty to production of child pornography today before U.S. District Judge Marcia Crone.

According to information presented in court, on Apr. 2, 2015, federal agents executed a search warrant at Gracia’s residence in Galveston based on information that child pornography was being distributed from that location.  During the search, investigators located a digital memory card in a locked safe that contained videos of Gracia and his victims.  In these videos, Gracia, a registered sex offender, was engaged in sexual activity with the children.  Further investigation revealed the videos were originally produced in Jefferson County, Texas.  Gracia was indicted by a federal grand jury on May 7, 2015.

Gracia faces a mandatory term of life in federal prison.  A sentencing date has not been set.

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

                This case is being investigated by Homeland Security Investigations (HSI), Jefferson County District Attorney’s Office, Jefferson County Sheriff’s Office and Galveston Police Department and prosecuted by Assistant U.S. Attorney Lesley Bartow.

TYLER, Texas – A 38-year-old former Hopkins County school teacher has been indicted for child exploitation charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

Lucas R. Hill, formerly of Sulphur Springs, Texas, has been named in a three-count indictment returned by a federal grand jury on July 15, 2015 charging him with producing child pornography, enticing and coercing a minor, and transferring obscene matter to a child younger than 16 years of age.

The indictment was unsealed today and Hill is scheduled to make his initial appearance before U.S. Magistrate Judge Don D. Bush on July 22, 2015.

According to the indictment and information presented in court, earlier this year, law enforcement officials were notified by a family who had discovered that an unknown individual had created an account on the social media site, Facebook, using images of their minor son.  An investigation revealed that an individual accessed the account from Hill’s residence in Sulphur Springs, Texas.  At the time, Hill was a teacher with the Cumby Independent School District.  Hill is alleged to have created the Facebook account under the fictitious name, “Aaron Cage,” and posed as a teenage boy by utilizing photographs of another minor male, without that minor’s knowledge or consent.  From at least October 2013, Hill is alleged to have contacted a number of minor females, including children who may have attended Cumby schools, through the fictitious “Aaron Cage” Facebook page.  Hill chatted with the females and persuaded them to engage in sexually explicit conduct, including producing images and videos of themselves engaged in sexual activity.

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

Any minors who may have had contact with “Aaron Cage” are urged to contact Victim-Witness Coordinator Judy Daigle at the U.S. Attorney’s Office at 1-800-804-3547.  The U.S. Attorney’s Office will take the necessary steps to protect all minors’ identities and confidential information.

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 is being investigated by the U.S. Secret Service, the Hopkins County Sheriff’s Office, and the Sulphur Springs Police Department.  This case is being prosecuted by Assistant U.S. Attorney Marisa J. Miller.

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

PLANO, Texas – A 27-year-old Morganton, NC man has been indicted in connection with an oil and gas scheme in the Eastern District of Texas, announced U.S. Attorney John M. Bales.                

Justin Spearman was indicted by a federal grand jury on July 15, 2015 and charged with wire fraud and three counts of aggravated identity theft.  Spearman appeared before U.S. Magistrate Judge Don D. Bush today and will remain in federal custody pending trial.  Spearman was arrested on July 6, 2015, in McKinney after he arrived in Texas to pick up a check from a victim. 

According to the indictment, in June 2015, Spearman is alleged to have devised and executed a scheme to defraud another individual by filing fraudulent Assignments of Overriding Royalty Interest (ORI)s in Greeley Colorado, and attempting to do so in Cheyenne, Wyoming, that actually belonged to other persons, one of which was the owner of a royalties company located in Collin County, Texas. 

If convicted, Spearman faces up to 20 years in federal prison for the wire fraud charge and two years to be served consecutively on the aggravated identity theft counts.

This case is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Chris Eason.

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

PLANO, Texas — A 47-year-old Carrollton, Texas man has been indicted on 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.

According to the indictment and evidence introduced at a detention hearing today, on July 7, 2015, law enforcement officers became aware of a Craigslist advertisement posted by a person identified as Figueroa seeking young males for sexual activity.  An undercover officer posing as a 16-year-old male responded to the ad and began communicating with Figueroa.  Figueroa directed the undercover officer to the AMC theatre at the Stonebriar Centre in Frisco.  The undercover officer met Figueroa at the theatre and engaged in additional conversation before Figueroa directed the undercover officer to a bathroom, where Figueroa was detained.   

Figueroa was arrested on July 10, 2015 and remains in custody.  If convicted, Figueroa faces a minimum of 10 years, and up to life, in federal prison.

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 is being investigated by Homeland Security Investigations (HSI) and the Frisco Police Department and prosecuted by Assistant U.S. Attorney Marisa Miller.  

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

LUFKIN, Texas - U.S. Attorney John M. Bales announced today that five individuals are in custody following a lengthy investigation into drug trafficking in the Eastern District of Texas.

                On July 14, 2015, a combined task force of federal, state and local law enforcement agencies began executing federal arrest warrants for defendants indicted following a two year investigation into the distribution of methamphetamine in the Eastern District of Texas and elsewhere. The agencies also executed three search warrants in Diboll and one in Lufkin.

Two separate indictments were returned by a federal grand jury on July 1, 2015 charging 10 individuals with federal drug and firearms violations.  Of those, five defendants were arrested on July 14th and the indictment was unsealed by a federal magistrate late that night.  Those defendants in custody are:

Ruben Enriquez, 42 of Diboll, Texas;

Agustin Enriquez, 48 of Diboll, Texas;

Alonso Enriquez, 33 of Diboll, Texas;

Jorge Enriquez, 33, of Lufkin, Texas; and

Douglas Wayne Williams, 40 of Lufkin, Texas

                Law enforcement officers seized eight firearms, approximately 26 pounds of methamphetamine, $20,000 cash and eight vehicles during the arrests.  The remaining five defendants are being sought by law enforcement at this time.

According to the first indictment, beginning in 2013, Ruben Enriquez, Agustin Enriquez, Alonso Enriquez, and Jorge Enriquez are alleged to have conspired with each other and others to possess with the intent to distribute over 50 grams of methamphetamine.  Nine of the defendants are charged with conspiracy to possess with the intent to distribute a controlled substance. One defendant is charged with possession of a firearm in furtherance of a drug trafficking crime.

                According to the second indictment,       on Jan. 15, 2015, Douglas Wayne Williams is alleged to have possessed with the intent to distribute methamphetamine and possessed a firearm in furtherance of a drug trafficking crime.

                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 drug possession charges, Douglas Wayne Williams faces a minimum of five years and up to 40 years in federal prison.  If convicted of the weapons violations, those defendants face at least 5 years in federal prison.  The indictments also seek forfeiture of any property used to commit or facilitate the crimes or derived from proceeds of the conspiracy.

The cases are being investigated by the Drug Enforcement Administration and the Texas Department of Public Safety – Criminal Investigation Division. The U.S. Marshals Service, DEA Aviation, Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, Department of Homeland Security – Homeland Security Investigations, Texas Department of Public Safety-Highway Patrol Division, Texas Department of Public Safety-Aircraft Division, Angelina County Constable Precinct 1 and Precinct 4, Angelina County Sheriff’s Office, Lufkin Police Department, Diboll Police Department, Houston Police Department, Conroe Police Department and the Nacogdoches County Sheriff’s Office assisted in the execution of the arrest warrants and search warrants in the Eastern District of Texas.  The cases are being prosecuted by Assistant U.S. Attorney Lauren Gaston.

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

BEAUMONT, Texas – A 28-year-old Orange, Texas man pleaded guilty to federal charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

           Jonathan Michael Swearingen pleaded guilty to possession of child pornography today before U.S. Magistrate Judge Zachary J. Hawthorn.

           According to information presented in court, on Sep. 4, 2013, federal agents executed a search warrant at Swearingen’s residence in Orange, Texas, after authorities identified a computer Internet Protocol (IP) address belonging to Swearingen, possessing and offering images of child pornography via file sharing programs.  A personal computer and digital storage devices were seized during the search.  A review of the items revealed approximately 308 images and 25 videos of child pornography.  Swearingen was indicted by a federal grand jury on Oct. 1, 2014 and charged with child exploitation violations.

           Swearingen faces up to 20 years in federal prison at sentencing.  A sentencing date has not been set.

            This case is being investigated by Homeland Security Investigations (HSI), the Beaumont Police Department, the West Orange Police Department, and the Orange County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Randall L. Fluke.

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BEAUMONT, Texas - U.S. Attorney John M. Bales announced today that the current head of the Mexican drug trafficking organization, the Gulf Cartel, or Cartel del Golfo, has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas.

                Juan Francisco Saenz-Tamez, 23, of Camargo, Tamaulipas, Mexico, pleaded guilty on Jan. 13, 2015 to distribution and possession with intent to distribute cocaine, conspiracy to distribute and possession with intent to distribute marijuana, and conspiracy to commit money laundering.  Saenz-Tamez was sentenced to 30 years in federal prison today by U.S. District Judge Marcia A. Crone and ordered to pay a money judgment of $100 million.

                According to information presented in court, a federal investigation into the large-scale trafficking of illegal drugs from Mexico into the Eastern District of Texas led to the identity of Saenz-Tamez.  The investigation revealed Saenz-Tamez was responsible for the shipment of one-half ton of cocaine and 90 tons of marijuana into the Eastern District of Texas and then to locations across the nation, including Florida, Ohio, Michigan, Mississippi, Louisiana, Washington D.C., Pennsylvania, Tennessee, Maryland and Georgia.  As a result of this scheme, $100 million was laundered by Saenz-Tamez and his drug trafficking organization. 

               Saenz-Tamez was indicted by a federal grand jury on Sep. 5, 2013 and charged with conspiracy with intent to distribute cocaine, conspiracy with intent to distribute marijuana, and conspiracy to money launder.  Saenz-Tamez was arrested by federal agents on Oct. 9, 2014 while shopping in Edinburg, Texas.

                This case is the result of ongoing Organized Crime Drug Enforcement Task Force (OCDETF) joint investigations, Operation South Park, Operation La Mano Negra, Operation Frontera Chica and Operation Iceberg.  The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.

               This joint law enforcement investigation was led by the U.S. Drug Enforcement Administration and Homeland Security Investigations, Houston HIDTA Group 33, Internal Revenue Service – Criminal Investigation, U.S. Marshals Service, Texas Department of Public Safety, Texas Attorney General’s Office, National Guard of Texas – Joint Counterdrug, Beaumont Police Department, Houston Police Department, Nacogdoches Police Department,  Jefferson County Sheriff’s Office, and the Harris County Sheriff’s Office.  This case was prosecuted by Assistant U.S. Attorney John Craft.

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