Eastern District of Texas

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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 made an initial appearance in the Eastern District of Texas on drug trafficking charges.

                Juan Francisco Saenz-Tamez, 23, of Camargo, Tamaulipas, Mexico, was arrested by federal agents on Oct. 9, 2014 while shopping in Edinburg, Texas.

                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 thousands of kilograms of cocaine and marijuana were shipped 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.

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 transported from McAllen, Texas to Beaumont where he appeared before U.S. Magistrate Judge Zack Hawthorn for a detention hearing and initial appearance today.

If convicted, Saenz-Tamez faces a minimum of 10 years and up to life in federal prison for the drug charges and up to 20 years in federal prison for the money laundering charge.

"The news that Juan Saenz-Tamez has been arrested is further proof that justice is prevailing in Mexico,” said U.S. Attorney Bales.  “I am encouraged that the efforts of so many law enforcement officers are now paying off. Congratulations to them and I look forward to seeing Saenz-Tamez answer for his crimes in a Beaumont courtroom."

“Juan Francisco Saenz-Tamez became the head of the Gulf Cartel following the 2013 arrest of former leader Mario Ramirez-Trevino,” said DEA Administrator Michele M. Leonhart. “He moved steadily up the cartel ranks, working as a lookout, record keeper, plaza boss, and finally its leader. Thanks to the quick actions of DEA and our local partners, we were able to identify and safely arrest Saenz-Tamez while he was in the United States.  He oversaw much of the violence and bloodshed that has plagued Mexico and DEA is pleased he will face justice in the United States.”

“The arrest of Juan Francisco Saenz-Tamez, will put a stop to his role in the distribution of illegal drugs and the laundering of drug proceeds,” said IRS-CI Special Agent in Charge Lucy Cruz.  “Laundering their profits is as important and essential to drug traffickers as the distribution of their illegal drugs. IRS CI is proud to provide assistance as we work alongside our law enforcement partners to bring these criminals to justice."

                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, Internal Revenue Service – Criminal Investigation, United States 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 is being 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.

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 TYLER, Texas – A 25-year-old Palestine, Texas man has pleaded guilty to child pornography charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
 
Joshua Quick pleaded guilty to receiving child pornography today before U.S. Magistrate Judge K. Nicole Mitchell.

According to information presented in court, on Sep. 14, 2013, Quick received child pornography on a computer after using the computer to solicit the participation of a minor to engage in sexually explicit conduct persuading the minor to produce images depicting child pornography.  Quick was indicted by a federal grand jury on Feb. 26, 2014. 
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.
Quick faces a minimum of five years and up to 20 years in federal prison.  A sentencing date has not been set.
This case is being investigated by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Anderson County Sheriff’s Office and the Urbandale, Iowa Police Department and prosecuted by Assistant U.S. Attorney Nathaniel C. Kummerfeld.

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 BEAUMONT, Texas – A 53-year-old Beaumont man has pleaded guilty to wire fraud charges in the Eastern District of Texas, announced U.S. attorney John M. Bales.

            William Elzy Kelley, Jr., also known as Bo Kelley, pleaded guilty to an Information charging him with wire fraud today before U.S. District Judge Marcia Crone.

According to information presented in court, Kelley was president of the West Brook High School Football Booster Club from 2012 to February 2014.  During which time Kelley had access to the Booster Club’s funds, which were kept in separate checking and savings accounts.  From Sep. 2013 through Feb. 2014, Kelley withdrew funds from these accounts to pay personal expenses, including, but not limited to rent payments at Stoneleigh Apartments, college tuition, and other household bills.  Kelley carried out the scheme by withdrawing cash and depositing it into his personal bank account and by using the debit card and writing checks on the account for his personal use.  Kelley is specifically charged with using the Booster Club debit card to make a payment to Stoneleigh Apartments in the amount of $922.42 on Dec. 3, 2013.

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

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.

“We have all been terribly disappointed with instance after instance of graft, abuse of authority and now, in Mr. Kelly’s instance, just plain theft,” said U.S. Attorney Bales. “This defendant masqueraded as a volunteer who only had West Brook’s best interests at heart – instead, he looted the booster club and so now he will join the growing parade of those who will be held accountable for violating our trust.”

"Today's guilty plea is a prime example that our investigations are not limited to only public entities, but actually encompass a broad range of fraud involving related organizations and associations,” said Jefferson County District Attorney Cory Crenshaw.

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

This case is being investigated by the Federal Bureau of Investigation, the Beaumont Police Department, and the Jefferson County District Attorney’s Office.  This case is being prosecuted by Assistant U.S. Attorneys Joseph R. Batte and Christopher T. Tortorice.

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 SHERMAN, Texas -  A 61-year-old Spring Branch, Texas woman has been sentenced to federal prison for income tax violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.  

Shirley Jean Emert pleaded guilty on Feb. 6, 2014 to making and subscribing to a false tax return for the calendar year 2010 and was sentenced to 24 months in federal prison today by U.S. District Judge Richard Schell.

According to information presented in court, Emert embezzled funds from her employer, Applied Concepts, in the amounts of $53,859 in 2008; $126,202 in 2009; $172,965 in 2010; and $166,254 in 2011.  Emert failed to report the income on the corresponding tax year returns.  Emert’s willful act of falsely reporting income on her tax returns for the years 2008 through 2011 resulted in income tax due and owing in the amount of $159,907.

Emert was also ordered to pay restitution in the amount of $697,187.78 to Applied Concepts and the IRS.

                This case was prosecuted by the Eastern District of Texas on behalf of the Northern District of Texas.  This case was investigated by IRS Criminal Investigations and the U.S. Postal Inspection Service and prosecuted by Assistant U.S. Attorney M. Andrew Stover.

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 TYLER, Texas - A 48-year-old Edgewood, Texas man has pleaded guilty to federal income tax violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.  

Bruce Steven Martin pleaded guilty on Sep. 18, 2014, to willfully failing to file a federal tax return before U.S. Magistrate Judge Don D. Bush.  Martin appeared before Judge Bush today for a detention hearing and was ordered to be detained.

According to information presented in court, Martin admitted to receiving income during calendar year 2010 and willfully failing to file an income tax return with the internal Revenue Service.  Martin was indicted by a federal grand jury on Nov. 13, 2013.  After he missed several court appearances, he was ordered to be detained.  Martin faces up to 12 months in federal prison.  A sentencing date has not been set.

            This case is being investigated by the Internal Revenue Service-Criminal Investigation and prosecuted by Assistant U.S. Attorney J. Andrew Williams.

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   BEAUMONT, Texas – A 61-year-old Port Arthur, Texas woman has been charged for her role in the SYAM Tax Service Scheme in the Eastern district of Texas, announced U.S. Attorney John M. Bales today.

                Diana Broussard McCoy was indicted on Oct. 1, 2014 by a federal grand jury charging her with conspiracy to commit wire fraud.

                McCoy joins Shannon Tecoko Mays, 36, of Dallas, who was previously indicted on Feb. 5, 2014, for conspiracy to commit wire fraud.  Mays is currently scheduled for trial on Dec. 8, 2014, before U.S. District Judge Ron Clark.

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

                The indictment alleges that Mays employed McCoy as a “recruiter” for Southeast Texas, paying her between $50-100 for every client she successfully brought into Syam Tax.  Mays targeted individuals who were generally exempt from having to file income tax returns because they would be less likely to discover a fraudulent tax return had been filed on their behalf.  In order to avoid detection, Mays altered the taxpayer’s address and phone numbers on the returns so that any phone calls or correspondence from the IRS would not reach the taxpayer.  The scheme also used electronic deposits to ensure paper checks would not be mailed to the taxpayer.

                On Aug. 22, 2012, Port Arthur Police and federal investigators executed a search warrant on McCoy’s residence in Port Arthur.  Officers recovered numerous boxes of documents that contained the personal information of Port Arthur residents and had previously been faxed to Syam’s Houston office. 

For the tax year 2011, Syam Tax filed 4,226 tax returns claiming approximately $3,150,406.  If convicted, McCoy faces up to 20 years in federal prison.   

This case is being investigated by Internal Revenue Service – Criminal Investigation, Federal Bureau of Investigation, the Port Arthur Police Department, the Texas Attorney General’s Office – Consumer Protection Division, and the Treasury Inspector General for Tax Administration.  This case is being prosecuted by Assistant U.S. Attorney Baylor Wortham.

It is important to note that a grand jury indictment is not evidence of guilt.

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  TYLER, Texas – A35-year-old Longview, Texas man has pleaded guilty to drug trafficking charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

            Antonio Cortez Gonzales pleaded guilty to conspiracy to distribute and possession with intent to distribute cocaine and marijuana today before U.S. Magistrate Judge John D. Love.

According to information presented in court, on Aug. 19, 2013, law enforcement officers executed a search warrant at Gonzales’ Longview residence.  The search revealed 150 grams of cocaine, 6.5 kilograms of marijuana, empty wrappers for kilogram quantities of cocaine, guns and ammunition.  Further investigation revealed kilograms of cocaine were being transported from Houston to Gonzales in Longview for distribution to others.  A federal grand jury returned a 30-count indictment on Apr. 23, 2014, charging Gonzales and 17 others with drug trafficking violations.

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

            This case is the result of an ongoing Organized Crime Drug Enforcement Task Force (OCDETF) joint investigation.  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 is being investigated by the Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney Mary Ann Cozby.

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 TYLER, Texas – A 54-year-old McKinney, Texas photographer has pleaded guilty to child exploitation charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
 
Todd Fleming pleaded guilty to sexual exploitation of children today before U.S. Magistrate Judge K. Nicole Mitchell.

According to information presented in court, from 1999 to 2007, Fleming coerced minors to engage in sexually explicit conduct for the purpose of producing child pornography.  Fleming was indicted by a federal grand jury on Apr. 17, 2013 and charged with child exploitation violations.

“This criminal case should serve as a wake-up call to all parents to regularly monitor their children’s friends and Internet behavior, and to educate their children of the potential dangers of online predators,” said David M. Marwell, special agent in charge of HSI Dallas.  “For years, this school photographer assumed the online identities of many young girls to entice other girls to produce child pornography for him.  At the same time, he groomed still other young girls to produce his own child pornography.”

“Thank goodness that Todd Fleming will no longer be able to prey on unsuspecting children,” said U.S. Attorney Bales.  “Kudos to the investigative team who successfully brought Fleming to his well-deserved appointment with justice.  And I agree with SAC Marwell – the most important takeaway from this case is the need for parental vigilance and communication with their children.  For our part, we will continue to have zero tolerance for child pornographers.”
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.
Fleming faces a minimum of 15 years and up to 30 years in federal prison.  A sentencing date has not been set.

                This case is being investigated by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Texas Department of Public Safety – Criminal Investigations Division and prosecuted by Assistant U.S. Attorney Nathaniel C. Kummerfeld.

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    TEXARKANA, Texas - U.S. Attorney John M. Bales and Colonel Brandon Grubbs, Red River Army Depot Installation Commander, announced today that seven individuals have been indicted on federal charges involving conspiracy to commit an offense and to defraud the U.S. government and theft of government property or money in the Eastern District of Texas.

The defendants were named in a 2-count indictment returned by a federal grand jury on Sep. 17, 2014, charging them with conspiracy to commit an offense against and to defraud the U.S. government and theft of government property or money.  These violations are alleged to have caused over $2 million in losses to the Department of the Army and Red River Army Depot.  Those charged are:

Kenneth Ray Shackelford, 54, of Texarkana, Texas
Anthony Paul Vera, 54, of Dekalb, Texas                          
Shaun Dennis Knorr, 35, of Douglasville, Texas
Patrick Ray James, 54, of Hooks, Texas
William Robert Barr, 56, of Atlanta, Texas
Rodney Glen Cornelius, 63, of Queen City, Texas
William Randall Scott, 59, of Dekalb, Texas

The indictment was unsealed today and the defendants are scheduled to make initial appearances before U.S. Magistrate Judge Caroline Craven on Oct. 2, 2014.

Red River Army Depot (RRAD) is a Department of the Army installation in Bowie County, Texas, that employs a large civilian workforce.  RRAD’s primary mission is to repair tactical vehicles for the military.  RRAD maintains a fleet of tractor-trailers to bring tactical vehicles to and from RRAD for them to be repaired.

Benny Woodard, deceased, of Dekalb, Texas, was an Army civilian employee at RRAD who was responsible for the maintenance of the fleet of tractor-trailers.  According to the indictment, it is alleged that beginning in January 2007 until the time of his death in April 2013, Benny Woodard conspired with other RRAD employees and local vendors in the Texarkana area to defraud the Department of the Army by billing RRAD for tires and parts never received and for services never rendered.  Shackelford, Vera, Knorr, James, and Barr are vendors of tires, parts, and repair services in the Texarkana area that are alleged to have conspired with Benny Woodard in the alleged scheme.  Cornelius and Scott were RRAD civilian employees who are alleged to have facilitated the scheme at the direction of Benny Woodard.

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

This case is being investigated by the Federal Bureau of Investigation, the Department of the Army Criminal Investigations Division, and the Red River Army Depot Criminal Investigations Division.  This case is being prosecuted by Assistant U.S. Attorney D. Ryan Locker.

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

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    PLANO, Texas – A 26-year-old Plano gymnastics instructor has been sentenced to federal prison for child exploitation violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
 
Lyndsey Ryan Cox, also known as Coach Wes, pleaded guilty on June 17, 2014 to a charge of coercion or enticement and was sentenced to 120 months in federal prison today by U.S. District Judge Richard Schell.

According to information presented in court, in July 2013, Cox used his cellular phone to entice or coerce a minor to engage in sexual intercourse.  Cox was indicted by a federal grand jury on Aug. 15, 2013 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.
This case was investigated by the FBI, Plano Police Department and Collin County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Tracey M. Batson.

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       BEAUMONT, Texas – A 32-year-old Orange, Texas man has pleaded guilty to child pornography charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
 
Jason Ryan Bickham pleaded guilty to possession of child pornography on Sep. 17, 2014 before U.S. Magistrate Judge Zack Hawthorn.

According to information presented in court, law enforcement authorities were alerted by a citizen that Bickham had images containing child pornography on his cellular phone.  Bickham provided officers consent to search the phone.  A forensic analysis of Bickham’s phone revealed multiple images and videos of child pornography.  Bickham was indicted by a federal grand jury on June 4, 2014. 
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.
Bickham faces up to 20 years in federal prison.  A sentencing date has not been set.
This case is being investigated by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Orange Police Department and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney Randall LO. Fluke.

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     BEAUMONT, Texas – A 26-year-old Port Arthur, 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.

Michael Joseph Barrett IV pleaded guilty on Feb. 11, 2014, to possession with intent to distribute methamphetamine and was sentenced to 51 months in federal prison today by U.S. District Judge Marcia Crone.

            According to information presented in court, on Feb. 19, 2013, law enforcement officers responded to a residence on 32nd Street in Port Arthur after receiving information regarding suspected manufacture of methamphetamine at the location.  Consent to search was obtained and a search of the premises revealed a small amount of cocaine, a semi-automatic pistol, and various items associated with methamphetamine manufacture, including a three liter bottle containing a methamphetamine mixture.  A federal grand jury returned an indictment on Dec. 4, 2013, charging Barrett with drug trafficking violations.

            This case was investigated by the Drug Enforcement Administration, the Port Arthur Police Department and the Jefferson County Sheriff’s Office Crime Lab and prosecuted by Assistant U.S. Attorney Randall L. Fluke.

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     BEAUMONT, Texas – The former Director of Finance and Comptroller of the Beaumont Independent School District (BISD) have been sentenced to federal prison for federal violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

Devin Wayne McCraney, 35, of Beaumont, pleaded guilty on Apr. 14, 2014, to the charge of fraud upon programs receiving federal funds and was sentenced to 68 months in federal prison today by U.S. District Judge Ron Clark.

Sharika Baksh Allison, 43, of Beaumont, pleaded guilty on Apr. 14, 2014, to the charge of conspiracy to commit fraud upon programs receiving federal funds and was sentenced to 46 months in federal prison today by Judge Clark.

McCraney and Allison were also ordered to pay restitution in the amount of $4,041,705.27.

According to information presented in court, McCraney, Director of Finance for BISD, and Allison, Comptroller for BISD, devised schemes in which they embezzled over $4 million from BISD.  They were indicted by a federal grand jury on Jan. 8, 2014.

“These punishments demonstrate that if you violate the public trust, being the true will of the citizens of Beaumont to have and maintain a responsible public school system, you will be punished,” said U.S. Attorney Bales.  “The Beaumont school district enjoys many good, dedicated educators and employees.  This is the beginning of the end for those who chose to breach our trust, and it also begins the removal of the cloud that remains over the heads of those great employees who, on a daily basis, are responsible for the care and education of Beaumont’s children.”

“These defendants knowingly and willfully abused their position of trust to steal education funds that were supposed to be used to provide services for the most innocent of victims – school children.  That is unacceptable,” said Neil Sanchez, Special Agent in Charge of the U.S. Department of Education Office of Inspector General’s South Central Regional Office.  “I’m proud of the work of OIG Special Agents and our law enforcement colleagues for holding these individuals accountable for their criminal actions.”

"Personal greed put the children of BISD at risk, and eroded the public's trust in our system," said FBI Special Agent in Charge Perrye K. Turner.  "Let today's sentences help restore that trust and remind others that our elected and appointed officials must and will be held accountable at all levels of government.  We cannot do this job alone, and we encourage individuals with information about public corruption to come forward."

“Today’s sentencings are just one step in the process of holding certain officials accountable for breaching the public’s trust,” said Jefferson County District Attorney Cory Crenshaw.  “Today’s results are another example of the task force’s cooperative - federal, state and local law enforcement - efforts to investigate corruption within the BISD.   Our mission, of identifying those who have failed to uphold their duty to the children of this community by committing fraud, will continue.  Those who have committed crimes will be punished, and confidence in our school district will be rebuilt.”

McCraney and Allison were both ordered to surrender to the Bureau of Prisons unit where they will be assigned by 2:00 pm on Oct. 21, 2014.  McCraney requested a facility close to West Lake, LA.  Allison requested the facility in Bryan/College Station, Texas, as it is the only federal facility housing women in Texas.

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 case was investigated by the Federal Bureau of Investigation and the U.S. Department of Education Office of Inspector General.  This case was prosecuted by Assistant U.S. Attorneys Christopher T. Tortorice and Joseph R. Batte.

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        TYLER, Texas — A 44-year-old captured fugitive has pleaded guilty in connection with a federal health care fraud scheme in the Eastern District of Texas, announced U.S. Attorney John M. Bales.

            Vivian Yusuf, formerly of Port Harcourt, Nigeria, pleaded guilty to conspiracy to commit health care fraud on Sep. 17, 2014 before U.S. Magistrate Judge John D. Love.

Yusuf, a fugitive, wanted since March 2011, was arrested on June 3, 2014 at George Bush Intercontinental Airport in Houston.  Yusuf had been indicted for conspiracy to commit health care fraud, health care fraud, and aggravated identity theft on Jan. 12, 2012.

According to information presented in court, Yusuf, the former owner of Ivy Health Care Supply, a Houston-area medical supply company, and Aghaegbuna “Ike” Odelugo, James Reese, and others carried out a scheme to defraud Medicare through the marketing of power wheelchairs and accessories, as well as “ortho kits,” which primarily consisted of a bag of orthotic items, including braces, wraps, and supports, and a heat lamp or heat pad.  As part of the scheme, the defendant and her co-conspirators illegally obtained protected health information, including names, dates of birth, and Medicare numbers from elderly individuals.  Yusuf and her co-conspirators supplied beneficiaries with kits and power wheelchairs which were not prescribed or otherwise authorized by a physician and which were not wanted by the beneficiaries.  Claims were submitted by the defendant and her co-conspirators for approximately 790 beneficiaries located primarily in Texas and Louisiana.  In some instances, physicians’ signatures were forged and false claims were submitted to Medicare in the names of Medicare beneficiaries who were deceased.  By means of fraudulent billing practices, the defendant and her co-conspirators unlawfully submitted false and fraudulent claims to Medicare of more than $3.4 million and obtained more than $1.6 million.
Odelugo and Reese were indicted for their involvement in similar health care fraud schemes.  Odelugo pleaded guilty to conspiracy to commit health care fraud, health care fraud, and money laundering and was sentenced to 72 months in federal prison.  The loss to Medicare as a result of Odelugo’s scheme was approximately $9.9 million. Reese pleaded guilty to health care fraud and tax evasion and was sentenced to 180 months in federal prison.  The loss to Medicare as a result of Reese’s scheme was approximately $8.6 million.

Yusuf faces up to 10 years in federal prison when she appears before U.S. District Judge Michael H. Schneider for sentencing.  A sentencing date has not been set.

This case is being investigated by the U.S. Department of Health and Human Services – Office of the Inspector General (HHS-OIG), the Texas Office of the Attorney General – Medicaid Fraud Control Unit (OAG-MFCU), and the Federal Bureau of Investigation (FBI).  Assistant U.S. Attorney Nathaniel C. Kummerfeld and Special Assistant U.S. Attorney Ken McGurk are prosecuting this case.

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     BEAUMONT, Texas – A 23-year-old Forsyth, Missouri man serving time at a Beaumont federal prison has been sentenced for the deadly assault of another inmate in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

                Jacob Smith pleaded guilty on Apr. 16, 2014 to assault with intent to commit murder and was sentenced to 150 months in federal prison today by U.S. District Judge Ron Clark.

According to information presented in court, on Oct. 25, 2012, Smith was incarcerated at the Beaumont Federal Correctional Institution – Medium facility in Beaumont, Texas.  Smith and another prisoner entered the cell of inmate Edward Lee Bowlin, who they incorrectly believed was incarcerated for crimes related to sexual contact with children.  They assaulted Bowlin with their hands and feet and then left the cell.  Shortly thereafter, Smith returned to Bowlin’s cell and continued to beat him causing Bowlin to sustain serious head and brain trauma.  Bowlin fell into a coma, in which he remained until his death on Nov. 25, 2013.  Smith was indicted by a federal grand jury on Aug. 7, 2013.

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

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          SHERMAN, Texas - U.S. Attorney John M. Bales announced today that 16 individuals have been indicted on federal charges involving bank fraud and aggravated identity theft in the Eastern District of Texas.

                Robert Aaron Green, Christopher Henry Cosby, Mallori Lee Moss, Wendi Lee Wren and Katherine Jones Reynolds made initial appearances today before U.S. Magistrate Judge Amos Mazzant on charges of conspiracy to commit bank fraud and aggravated identity theft.  The defendants were named, along with 12 others, in a 76-count indictment returned by a federal grand jury on Aug. 13, 2014, charging them with federal violations that are alleged to have caused over $1.3 million in losses to banks.  Those charged are:

• Robert Aaron Green, 27, of Lauderdale Lakes, FL
• Christopher Henry Cosby, 25, of Fort Lauderdale, FL
• Dianna Leigh Painton, 23, of Fort Lauderdale, FL
• Shelton Jerrod Green, 23, of Casselberry, FL
• Demetris Jerome Cunnigham, 28, of Fort Lauderdale, FL
• Mallori Lee Moss, 25, of Port Orange, FL, and Dallas, Texas
• Benny Lee Doe, Jr., 30, of Fort Lauderdale, FL
• Steven Taurus Green, 23, of Fort Lauderdale, FL
• Christina Lynn Gallo, 34, of Coral Springs, FL
• David Lee Brown, 26, of Fort Lauderdale, FL
• Johnthavias Keon Brown, 26, of Lauderhill, FL
• Kamesha Nycole Brown, 24, of Fort Lauderdale, FL
• Moses George Freelove, 23, of Fort Lauderdale, FL
• Wendi Lee Wrenn, 47, of Port Orange, FL
• Christian Dominique Scott, 28, of Dallas, Texas, and
• Katherine Jones Reynolds, 51, of Mesquite, Texas

According to the indictment, members of the conspiracy are alleged to have broken into vehicles at various locations such as public parks, daycare facilities, gyms and neighborhood pools, stealing purses, wallets, bank checks, bank cards, drivers’ licenses, and other personal identifying information.  The defendants then transferred the stolen items to other members of the conspiracy for use at the banks.  Certain members of the conspiracy disguised themselves as theft victims often through the use of wigs, and drove into the drive-thru teller lanes of the banks using rented vehicles.  Other members of the conspiracy were usually hidden in the back seat of the rented vehicles so as to remain out of sight of bank personnel; they provided the disguised drivers with the stolen checks made payable from one victim to another, and the corresponding stolen drivers’ licenses and bank cards.  When the banks cashed the checks, the payee victims’ banks suffered the loss when the checks were returned from the maker victims’ banks as stolen.  While the banks were processing the checks, other members of the conspiracy provided surveillance for the rental vehicles used to present the stolen checks, typically in other rented vehicles.  The conspirators often used stolen Texas license plates to conceal the true license plates of the rental vehicles used in the scheme.  While the alleged criminal conduct was concentrated in the Dallas Metroplex, the conspiracy also extended to other states such as South Carolina, Alabama, Arkansas, Oklahoma and Florida.

If convicted of the conspiracy to commit bank fraud, the defendants each face up to 30 years in federal prison.  If convicted of the aggravated identity theft charges, each defendant faces up to a mandatory 2 additional years in federal prison for each count charged to run consecutive to the bank fraud punishment.

In a related case, another 11 individuals were indicted by a federal grand jury on Aug. 15, 2013, and charged with using the same scheme in the Dallas area.  Several defendants have already pleaded guilty and been sentenced to federal prison, including:

• Melvin Donnell Ferrell, 29, of Fort Lauderdale, sentenced to 70 months in federal prison on Sep. 8, 2014 and ordered to pay $28,281 in restitution;
• Craig Dwayne Tobias, 34, of Fort Lauderdale, sentenced to 46 months in federal prison on Sep. 3, 2014 and ordered to pay $6,673.37 in restitution;
• Atamian Rajuan Johnson, 32, of Riviera Beach, Florida, sentenced to 37 months in federal prison on Sep. 8, 2014, and ordered to pay $6,673.37 in restitution;
• Makeisha Ann Williams, 37, of Dallas, sentenced to 27 months in federal prison on Sep. 8, 2014, and ordered to pay $4,010 in restitution;
• Misty Dawn Hendrix, 38, of Dallas, sentenced to 37 months in federal prison on Sep. 3, 2014, and ordered to pay $2,313.37 in restitution; and 
• Marc Anthony Booker, 25, of Austin, Texas, sentenced to 54 months in federal prison and ordered to pay $63,951.73 in restitution.

This case is being investigated by the Federal Bureau of Investigation, the Plano Police Department, the Richardson Police Department, the Dallas Police Department, the Cedar Hills Police Department, the McKinney Police Department, the Arlington Police Department, and the Grapevine Police Department.  This case is being prosecuted by Assistant U.S. Attorney Christopher A. Eason.

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

Department of Justice
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         WASHINGTON – Assistant U.S. Attorney (AUSA) Traci L. Kenner of the U.S. Attorney’s Office in the Eastern District of Texas was one of 243 members of the Department of Justice recognized by Attorney General Eric Holder and Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson at the 30th annual Director’s Awards Ceremony on Sep. 10, 2014 in Washington D.C.

The Eastern District of Texas was one of 44 districts represented at the ceremony which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building.

In his prepared remarks to awardees, Attorney General Holder said, “Locally, nationally, and internationally, you represent the very best that this Department has to offer.  Your work embodies our ongoing commitment – not merely to win cases, but to do justice; to protect our fellow citizens from crime, violence, and terrorism; to empower the most vulnerable among us; and to uphold the rule of law.” 

EOUSA Director Monty Wilkinson echoed those sentiments, saying to the recipients, “You have persevered, and remained focused and motivated – achieving remarkable results in work that makes a difference in the lives of citizens across our great country. The vast scope of your collective accomplishments is nothing short of exceptional.”

Traci Kenner, of the Tyler office, was recognized for her outstanding performance as an Appellate AUSA and the Eastern District of Texas’s Appellate Chief. During her tenure, AUSA Kenner has made significant improvements to the district appellate program. In particular, AUSA Kenner’s exemplary handling of the appeal of United States v. Ebron, a capital murder trial originating in a Bureau of Prisons facility in the Eastern District of Texas, preserved a conviction and death sentence in a case with unusual appellate issues that could have -- but for AUSA Kenner -- resulted in a reversal and retrial. Instead, the final outcome was an affirmance in the Court of Appeals and denial of certiorari by the United States Supreme Court.

            “For many years, Traci has honed her professional skills to become one of the most skilled appellate lawyers in the entire Department of Justice,” said U.S. Attorney John M. Bales.  “In the Eastern District of Texas, she handles our most complicated appeals, including the death penalty cases for which she has been so deservedly recognized.  We are a much better office because of Traci’s work and I am pleased that she has been afforded this honor – it is certainly deserved.”

EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.

Department of Justice
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         WASHINGTON – The Litigation Support Team for the U.S. Attorney’s Office in the Eastern District of Texas was recognized by Attorney General Eric Holder and Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson at the 30th annual Director’s Awards ceremony on Sep. 10, 2014 in Washington D.C.

The Eastern District of Texas was one of 44 districts represented at the ceremony which recognized 243 members of the Department of Justice at a ceremony held in the Great Hall at the Robert F. Kennedy Department of Justice Building.

In his prepared remarks to awardees, Attorney General Holder said, “Locally, nationally, and internationally, you represent the very best that this Department has to offer.  Your work embodies our ongoing commitment – not merely to win cases, but to do justice; to protect our fellow citizens from crime, violence, and terrorism; to empower the most vulnerable among us; and to uphold the rule of law.” 

EOUSA Director Monty Wilkinson echoed those sentiments, saying to the recipients, “You have persevered, and remained focused and motivated – achieving remarkable results in work that makes a difference in the lives of citizens across our great country. The vast scope of your collective accomplishments is nothing short of exceptional.”

The Litigation Support Team of Janet Holley and Garin Reetz in the Plano office; Keary Conrad in the Sherman office; Glenda Martin in the Beaumont office; and Donna Krise in the Lufkin office, were recognized for their outstanding vision and teamwork in support of the prosecutorial mission. While the unit officially formed under Ms. Holley’s supervision in 2010, the evolution of this team started before 2010, as they independently developed innovative practices to provide litigation support in their offices. Once formed, the members combined their individual knowledge and talents to elevate service across all offices. They inherently understand how to enhance a case by court presentations, bringing the district out of the dark ages of overhead projectors and flipcharts to state-of-the-art multi-media evidence presentations.

            “Today’s jurors are very sophisticated and they expect to be presented with evidence that is not only organized and persuasive but is presented in a fashion that helps them understand increasingly complex cases," said U.S. Attorney John M. Bales.  “The litigation support provided by our award winning team accomplishes that mission in spades.  Each of them has invested many hours in training and each of them spend many more hours in helping our prosecutors prepare what I believe are the best presented cases in east Texas.  These individuals are the consummate team players.  I am pleased that they have been recognized by our Executive Office but I not surprised – they are also great people.”

EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.

Department of Justice
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         WASHINGTON – Assistant U.S. Attorney Matt Quinn of the U.S. Attorney’s Office in the Eastern District of Texas was one of 243 members of the Department of Justice recognized by Attorney General Eric Holder and Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson at the 30th annual Director’s Awards Ceremony on Sep. 10, 2014 in Washington D.C.

The Eastern District of Texas was one of 44 districts represented at the ceremony which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building.

In his prepared remarks to awardees, Attorney General Holder said, “Locally, nationally, and internationally, you represent the very best that this Department has to offer.  Your work embodies our ongoing commitment – not merely to win cases, but to do justice; to protect our fellow citizens from crime, violence, and terrorism; to empower the most vulnerable among us; and to uphold the rule of law.” 

EOUSA Director Monty Wilkinson echoed those sentiments, saying to the recipients, “You have persevered, and remained focused and motivated – achieving remarkable results in work that makes a difference in the lives of citizens across our great country. The vast scope of your collective accomplishments is nothing short of exceptional.”

Matthew C. Quinn was recognized for his outstanding contributions in leading the formation of the office in Texarkana, Arkansas, while he was an AUSA for the Western District of Arkansas. AUSA Quinn volunteered to be the first AUSA in the newly formed office, where he worked to build relationships with federal agents and local officers throughout approximately 20 counties. He was central to a new partnership between United States Attorneys’ offices for the Eastern District of Texas and Western District of Arkansas who share the Texarkana office. In addition, AUSA Quinn’s efforts have led to large drug-trafficking investigations and prosecutions including Operation Stateline Sweep, Operation Crystal Clear, Operation Street Sweeper, and Operation Ice Pick. His caseload and tireless leadership in the southern part of the district have had an enormous impact on the furtherance of justice in this previously underserved area.  AUSA Quinn left the Western District of Arkansas in June 2014 and joined the Eastern District of Texas as the Attorney in Charge of the Beaumont office.

            “Matt Quinn’s accomplishments as an AUSA in Texarkana are the stuff of legend,” said U.S. Attorney John M. Bales.  “He started the work from scratch and four years later, dozens of dangerous criminals were justly incarcerated and federal, state and local law enforcement had effectively coalesced around Matt’s leadership.  I have no doubt that Matt will accomplish similarly great things in the Golden Triangle for the people of the Eastern District of Texas.”

EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.

Department of Justice
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         WASHINGTON – Assistant U.S. Attorney John B. Ross of the U.S. Attorney’s Office in the Eastern District of Texas was one of 243 members of the Department of Justice recognized by Attorney General Eric Holder and Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson at the 30th annual Director’s Awards Ceremony on Sep. 10, 2014 in Washington D.C.

The Eastern District of Texas was one of 44 districts represented at the ceremony which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building.

In his prepared remarks to awardees, Attorney General Holder said, “Locally, nationally, and internationally, you represent the very best that this Department has to offer.  Your work embodies our ongoing commitment – not merely to win cases, but to do justice; to protect our fellow citizens from crime, violence, and terrorism; to empower the most vulnerable among us; and to uphold the rule of law.”

EOUSA Director Monty Wilkinson echoed those sentiments, saying to the recipients, “You have persevered, and remained focused and motivated – achieving remarkable results in work that makes a difference in the lives of citizens across our great country. The vast scope of your collective accomplishments is nothing short of exceptional.”

John B. Ross, of the Beaumont office, was recognized for his distinguished service and outstanding success in related prosecutions of the Solid Wood Soldiers (SWS). The SWS is a  race-based organization that began to grow significantly in the late 2000s. Led by AUSA Ross, a multi-agency team of agents and investigators leveraged the investigation of one murder to severely disrupt and dismantle the operation and growth of the SWS criminal enterprise. In so doing, the team also effectively disrupted the Aryan Brotherhood and Aryan Circle gangs. White supremacist gang leaders who had sworn never to cooperate with the government were induced to do so. AUSA Ross used available federal statutes and investigative tools to send a substantial portion of the SWS leadership to prison to serve life sentences. This successful VICAR (Violent Crime in Aid of Racketeering) prosecution highlights effective federal law enforcement and served to deter the SWS and other racketeering organizations.

            “When John was asked to take on an unsolved and unspeakably grisly murder, he did so with the knowledge that we might not ever know what had happened to James Sedtal,” said U.S. Attorney John M. Bales.  “John assembled a task force of agents and officers who worked tirelessly to find out the answers and in the process, they completely unspooled the Solid Wood Soldiers, essentially crippling that gang’s organizational hierarchy.  John Ross’ resolute work is a great example of how the Eastern District of Texas takes on cases that are much more than just solving a crime – they change the community for the better.”

EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.

Department of Justice
Office of Public Affairs

           BEAUMONT, Texas – A 38-year-old Vinton, Louisiana man has been convicted of drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today. 

Jeremy James Wimberly was found guilty by a jury of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, use of a firearm during a drug trafficking crime and being a felon in possession of a firearm.  The jury deliberated for 30 minutes before returning with a guilty verdict on all four counts.  The verdict was returned late Friday, Sep. 5, 2014 following a three-day trial before U.S. District Judge Ron Clark. 

According to information presented in court, in September 2013 and October 2013, Wimberly made two controlled deliveries of a large amount of methamphetamine to an individual in Orange County, Texas.  After the drug transaction on Oct. 23, 2013, law enforcement officers attempted to make a traffic stop on Wimberly.  However, he led them on a 23-mile high speed chase at speeds reaching approximately 135 mph in Orange County before running out of gas in south Newton County and fleeing on foot.  Wimberly was found to have discarded a gun and a large quantity of methamphetamine during the chase.  Further investigation revealed he was a convicted felon and prohibited from owning or possessing a firearm or ammunition.  Wimberly was indicted by a federal grand jury on Nov. 6, 2013 and charged with federal drug and gun violations.

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

The case was investigated by the Orange County Sheriff’s Office, Orange Police Department,  Bureau of Alcohol, Tobacco, Firearms, and Explosives, U.S. Drug Enforcement Administration, and the Beaumont Police Department.  This case is being prosecuted by Assistant U.S. Attorneys Michelle Englade and Baylor Wortham. 

Department of Justice
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            TYLER, Texas — U.S. Attorney John M. Bales announced today that a former employee of an East Texas hospital has pleaded guilty to criminal HIPAA charges in the Eastern District of Texas.

            Joshua Hippler, 30, formerly of Longview, Texas, was indicted on March 26, 2014, on charges of Wrongful Disclosure of Individually Identifiable Health Information.  Hippler pleaded guilty on August 28, 2014 during a hearing before United States Magistrate Judge John D. Love. 

            The indictment alleged that from December 1, 2012, through January 14, 2013, Hippler, who was then an employee of a covered entity under HIPAA, obtained protected health information with the intent to use the information for personal gain.

            Hippler faces up to ten years in federal prison.  A sentencing date has not been set.                                                                                          

            The investigation leading to the charges was conducted by agents from the U.S. Department of Health and Human Services - Office of Inspector General (HHS-OIG) and the U.S. Postal Inspection Service.  Assistant United States Attorney Nathaniel C. Kummerfeld is prosecuting the case.

Department of Justice
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            TYLER, Texas – A 37-year-old McKinney, Texas man has been arrested in connection with a bank robbery in the Eastern District of Texas, announced U.S. Attorney John M. Bales. 
             
            Daniel River Burson was arrested on Aug. 25, 2014 pursuant to a criminal complaint issued by the U.S. District Court charging him with bank robbery.  Burson had an initial appearance before U.S. Magistrate Judge John D. Love today and will have a detention hearing on Aug. 29, 2014.

            According to information presented in court, on Aug. 11, 2014, Burson is alleged to have robbed the Capitol One Bank on New Copeland Road in Tyler.  A joint investigation with the Federal Bureau of Investigation and the Tyler Police Department led to the identity of Burson.

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

            This case is being investigated by the Federal Bureau of Investigation and the Tyler Police Department and prosecuted by Assistant U.S. Attorney Jim Middleton.

            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.

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Department of Justice
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             BEAUMONT, Texas – A 39-year-old Lufkin, Texas man has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.   

             Andy Lee House pleaded guilty to an Information charging him with wire fraud today before U.S. Magistrate Judge Keith Giblin.

             According to information presented in court, in October 2009, House purchased a 2006 Bugatti Veyron for $1 million and had it insured for $2.2 million.  On Nov. 11, 2009, House drove the vehicle into the Gulf Bay near La Marque, Texas, and upon exiting the Bugatti, left the motor running, resulting in the engine taking on large amounts of salt water which destroyed the vehicle.  House reported to first responders he was reaching for his cell phone when he swerved and accidently drove into the bay.  On Nov. 12, 2009, House called the insurance company and filed a $2.2 million claim on the Bugatti.  However, House did not know that another motorist had videoed the accident, including the moment House drove the vehicle into the water, and then posted the video to YouTube.  

              House 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, the Lufkin Police Department, the Texas Rangers, the Department of Public Safety-Criminal Investigation Division, and the Nacogdoches Sheriff’s Office.  This case is being prosecuted by Assistant U.S. Attorney Christopher T. Tortorice.

           
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Department of Justice
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 BEAUMONT, Texas – A 40-year-old Nederland, Texas man has been convicted of drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today. 

              Stephen Shane Hall, also known as Shane Hall, was found guilty by a jury of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, and being a felon in possession of a firearm.  The verdict was returned late Thursday, August 21, 2014 following a three-day trial before U.S. District Judge Marcia Crone. 

              According to information presented in court, from February 2013 to August 2013, law enforcement officers investigated Hall and others regarding the distribution of methamphetamine in the Orange County area.  On Aug. 31, 2013, a search warrant was executed at a residence on Spooner Road in Orange County, Texas.  During the search, 57 grams of methamphetamine were discovered as well as many items relating to the distribution of narcotics.  Officers also located three firearms inside the residence and garage area.  A federal grand jury returned an indictment on Nov. 6, 2013, charging Stephen Shane Hall, Misty Hall, Kevin Trent Portie, and Scott Robicheaux with federal drug trafficking violations.  Misty Hall, Portie, and Robicheaux have already pleaded guilty and are awaiting sentencing. 

              Stephen Shane Hall faces a mandatory sentence of life in federal prison.  A sentencing date has not been set.

              The case was investigated by the Orange County Sheriff’s Office, the Jefferson County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the U.S. Drug Enforcement Administration, and the Beaumont Police Department.  This case is being prosecuted by Assistant U.S. Attorney Michelle Englade and Special Assistant U.S. Attorney Russell James. 

Corrected 8/25/2014

Department of Justice
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         LUFKIN, Texas – A 40-year-old man from Milwaukee, Wisconsin has been arrested for federal drug and money trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales. 
             
Henry Korvett Bams, of Milwaukee, Wisconsin, was arrested Tuesday, pursuant to a criminal complaint issued by the U.S. District Court charginghim with conspiracy to possess with the intent to distribute over five kilograms of cocaine and engaging in interstate and foreign travel or transportation in aid of a Racketeering Enterprise.  On Sunday, July 6, 2014, Bams was 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, Bams was 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.  On Tuesday, July 22, 2014, Bams was 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 a hidden compartment 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 suspected drug proceeds.

If convicted, 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.

This case is being investigated by the Internal Revenue Service-Criminal Investigation, the U.S. Drug Enforcement Administration, the Federal Bureau of Investigation,  the Texas Department of Public Safety, the Arkansas State Police, Milwaukee High Intensity Drug Trafficking Area Task Force and Homeland Security Investigations, and is being prosecuted by Assistant U.S. Attorney Baylor Wortham.

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.

Department of Justice
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         BEAUMONT, Texas – A 32-year-old Port Arthur, Texas woman has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.   

Shawnta Rene Bell Jones pleaded guilty to conspiracy to commit mail fraud today before U.S. Magistrate Judge Keith F. Giblin. 

According to information presented in court, from November 2006 to August 2013, Jones was involved in a conspiracy with others to defraud insurance providers and other businesses by staging automobile collisions and then submitting claims for property damage and personal injury by U.S. mail and other carriers.  On Mar. 4, 2012, Jones and others staged an automobile accident in Port Arthur and then submitted fraudulent insurance claims to Farmers Insurance and Old American Mutual Insurance Company.  As a result of the fraudulent claim, payment was made by U.S. mail to defendants.  Jones’ received less than $5,000 for her part in the conspiracy. 

On June 4, 2014, a federal grand jury returned an indictment charging Jones and Port Arthur residents James Lee Jones, Sr., 46; Charles Christopher Mosley, 34; Martin James Eaglin, 39; Edmund Hurts III, 27; and Kristopher Bernard, 28, with conspiracy to commit mail fraud and 17 counts of mail fraud. 

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

                This case is being investigated by the Federal Bureau of Investigation, Port Arthur Police Department, National Insurance Crime Bureau and Farmers Insurance Investigations.  This case is being prosecuted by Assistant U.S. Attorney Christopher T. Tortorice and Special Assistant U.S. Attorney Catherine Cockrell.

Department of Justice
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           BEAUMONT, Texas – A 42-year-old Nederland, Texas man has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.   

Antonio Govea Figueroa pleaded guilty to an Information charging him with wire fraud today before U.S. Magistrate Judge Keith F. Giblin.

According to information presented in court, from June 2008 to November 2013, Figueroa, the owner and operator of Tony’s Kustom & Collision in Port Arthur, Texas, electronically submitted claims to Farmers Insurance for collision work.  Farmers became suspicious of the invoices submitted by Figueroa.  The inspection of 44 claims revealed Figueroa claimed repairs that were not actually done and claimed to use new parts when salvaged or inferior parts were actually used without the consent or knowledge of the insured. 

Figueroa faces up to 20 years in federal prison and restitution of $118,013.34 at sentencing.  A sentencing date has not been set.

            This case is being investigated by Department of Homeland Security – Homeland Security Investigations, Texas Department of Public Safety, and Farmers Insurance Significant Investigations Unit and prosecuted by Assistant U.S. Attorney Christopher T. Tortorice.

Department of Justice
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           PLANO, Texas – A 51-year-old Dallas man has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.   

Waddell “Wade” Jones pleaded guilty to money laundering and aiding and abetting today before U.S. Magistrate Judge Don D. Bush.

According to information presented in court, Jones admitted to receiving currency from an undercover officer and that he was told the currency was drug money derived from the sale of illegal narcotics.  In exchange, Jones provided stolen U.S. Treasury Checks to the undercover officer.  Jones admitted that he intended to conceal the currency that he believed to be from drug trafficking.  A federal grand jury returned an indictment against Jones and Chijioke Obiora on May 28, 2014.  Obiora is awaiting trial. 

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

                This case is being investigated by IRS Criminal Investigation, Texas Department of Public Safety Criminal Investigation, and U.S. Diplomatic Security and prosecuted by Assistant U.S. Attorney Jay Combs.

Department of Justice
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            BEAUMONT, Texas – A 32-year-old Beaumont, Texas man has been arrested for possessing Lego-shaped blocks of synthetic marijuana in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.   

Conrad Stanley Hammon was indicted by a federal grand jury on Aug. 6, 2014 and charged with possession with intent to distribute Dimethyltrypamine (DMT), or synthetic marijuana. 

 According to information presented in court, a state-issued search warrant was executed on June 13, 2014 at a residence in the 3900 block of Sunbury Drive in Beaumont.  Approximately 85 kilograms of DMT was discovered during the search.  Synthetic marijuana is often targeted for sale to minors or younger adults.  This particular seizure included liquid DMT injected into Lego-shaped blocks.  Hammon was arrested at his residence on the morning of Aug. 8, 2014 and brought before U.S. Magistrate Judge Keith F. Giblin for an Initial Appearance.  Hammon was released pending trial.

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

                This case is being investigated by the Drug Enforcement Administration and the Jefferson County Narcotics Task Force and prosecuted by Assistant U.S. Attorney Robert L. Rawls.

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.

Department of Justice
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              BEAUMONT, Texas – A 28-year-old Jasper, Texas man has been indicted for federal drug violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

                Shane Dwayne Hadnot was indicted on Aug. 6, 2014 by a federal grand jury charging him with conspiracy to possess with intent to distribute a controlled substance resulting in death and distribution of a controlled substance resulting in death.  Hadnot was arrested on Aug. 7, 2014 and will appear before U.S. Magistrate Judge Keith Giblin today. 

According to the indictment, on Nov. 7, 2013, Alfred Wright, of Jasper, Texas, was reported missing by his family after his truck broke down in rural Sabine County, Texas.  Articles of Wright’s clothing were found on private land, approximately a mile from where Wright was last seen.  After searchers initially failed to locate Wright, his body was found on Nov. 25, 2013 in brush near where his clothing had been found.  An investigation into the cause of Wright’s disappearance and death revealed his involvement with Shane Hadnot.  Phone records, witness statements, and drug evidence located during the search of Shane Hadnot’s car, indicated that Hadnot was selling cocaine to Alfred Wright. 

                During the two-day period before Wright’s death, Hadnot and Wright exchanged 20 text messages.  The indictment alleges that on Nov. 7, 2013, Wright sent a text message to Hadnot at 12:36 pm requesting to purchase cocaine and other illegal narcotics from Hadnot.  Wright went missing approximately five hours later.  An autopsy was performed on Wright’s body and toxicology testing revealed that Wright’s blood contained cocaine, methamphetamine and Xanax.  The final autopsy report, and other experts in the fields of pathology, toxicology, and anthropology concluded that Wright’s cause of death was an accident due to combined drug intoxication. 

                If convicted, Hadnot faces from 20 years to life in federal prison for each charge. 

This case is being investigated by the Texas Rangers, the Federal Bureau of Investigation, and the U.S. Drug Enforcement Administration.  This case is being prosecuted by Assistant U.S. Attorneys Brit Featherston and John B. Ross.

It is important to note that a grand jury indictment is not evidence of guilt.

Department of Justice
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              BEAUMONT, Texas — Three former Beaumont Independent School District employees have been indicted for embezzling money from a program receiving federal funds in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

              Daryl Glenn Johnson, 44,  Erin Gipson Johnson, 38, and Kailyn DeShondra Pete, 25, all of Beaumont, were indicted by a federal grand jury today on charges of conspiracy and fraud upon programs receiving federal funds.

              According to the indictment, from July 2009 through June, 2012, Daryl Johnson, who was employed as the warehouse supervisor for the school district, is alleged to have had first his wife, Erin Johnson, and then a friend, Kailyn Pete, placed on the BISD payroll as temporary employees.  However, neither Erin Johnson nor Kailyn Pete ever actually worked as a BISD warehouse employee.  Daryl Johnson had the autonomy to hire temporary warehouse employees on his own, and the authority to determine how many hours they would be paid, and could do so unilaterally and without the authorization or direct knowledge of anyone else. Daryl Johnson is alleged to have used this authority to fraudulently verify that both Erin Johnson and Kailyn Pete worked the hours indicated on their respective timesheets, which included extensive amounts of overtime when he knew that they in fact had not worked any of the hours.  Pete is alleged to have paid Daryl Johnson $500.00 from each of the BISD payroll checks she received.  From July 2009 through May 2011, Erin Johnson was paid $193,998.37.  During the timeframe of June 2010 through May 2012, Kailyn Pete was paid $90,041.05.

              If convicted, the defendants each face up to 10 years in federal prison.

              This case is being investigated by the joint task force with the Jefferson County District Attorney’s Office, the Beaumont Police Department, and the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorneys Joe Batte and Christopher T. Tortorice.

              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.

Department of Justice
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              BEAUMONT, Texas — Four East Texans have been charged in connection with a violent bank robbery in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

              Keith Collins, Jr., 24, of Jasper, Texas, Michael Dwayne Byerly, 20, of Newton, Texas, Xavier Odarius Clark, 21, of Jasper, Texas, and Khadijah Joy De’Inn Adams, 20, of Bon Weir, Texas, were indicted by a grand jury today and charged with federal violations.

              According to the indictment, on June 25, 2014, law enforcement authorities were alerted to a robbery at the Sabine State Bank & Trust Company on Highway 63 in Burkeville, Texas.  During the robbery, a bank employee was stabbed multiple times sustaining serious injuries.  Video surveillance revealed a man wearing a black hooded top confronting the bank employee with a knife and a handgun.  The bank employee struggled with the assailant and was stabbed approximately five times resulting in a punctured lung.  The assailant fled the scene without taking any money from the bank.  Law enforcement officers reviewed security surveillance from nearby businesses and were able to identify Collins as a person of interest.  Further investigation revealed the alleged involvement of Byerly, Clark and Adams. 

              A federal grand jury returned a four-count indictment charging Collins, Byerly and Clark with bank robbery, conspiracy to commit armed bank robbery, possession of a firearm during a crime of violence, and accessory after the fact.  Adams was also charged with accessory after the fact.

              If convicted, Byerly, Clark and Adams each face up to 20 years in federal prison for the bank robbery charge, up to 5 years for the conspiracy charge, and a minimum of 5 years for the firearms charge.  All four defendants face up to 10 years in federal prison for the accessory charge. 

              This case is being investigated by the Federal Bureau of Investigation, Newton County Sheriff’s Office and the U.S. Marshals Service and prosecuted by Assistant U.S. Attorney Christopher T. Tortorice.

              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.

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               BEAUMONT, Texas – A 29-year-old Columbus, Ohio man has been sentenced for his part in a credit card scheme in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

Mohamed Laye Dioubate, a naturalized citizen from Guinea, was sentenced to 33 months in prison today during a hearing before Judge Marcia Crone.  In December 2013, Dioubate was found guilty by a jury of possessing 15 or more unauthorized access devices in December. 

According to information presented in court, on June 27, 2012, Dioubate was stopped on Interstate-10 in Beaumont for a traffic violation.  A search of the vehicle revealed 158 fraudulent credit cards, a laptop computer and a credit card encoder.  The credit cards contained various names and account numbers and had been used in multiple fraudulent purchases throughout the country.  In November 2012, Dioubate was stopped on two separate occasions, once in Missouri and once in Indiana.  During each of those stops, he was again found in possession of multiple fraudulent credit cards.   Dioubate was indicted by a federal grand jury in the Eastern District of Texas and charged with federal violations in April 2013. 

Citizens can visit the Federal Trade Commission’s website to learn more on how to protect themselves from identity theft schemes:  http://www.consumer.ftc.gov/features/feature-0014-identity-theft.

            This case was investigated by the Beaumont Police Department, U.S. Secret Service, St. Charles County, Missouri, Sheriff’s Office, and the Henry County, Indiana, Sheriff’s Office.  This case was prosecuted by Assistant U.S. Attorneys Christopher T. Tortorice and Brit Featherston. 

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               PLANO, Texas – A 77-year-old McKinney, Texas man was found guilty for failing to register as a sex offender in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
 
A jury found Larry Wayne Thompson guilty on July 30, 2014, for failure to register as a sex offender before U.S. District Judge Richard Schell.  Thompson faces up to two years in federal prison at sentencing.  A sentencing date has not been scheduled.

According to information presented in court, Thompson was convicted of possession of child pornography in U.S. District Court for the Northern District of Oklahoma in 2000.  As a result of this conviction, Thompson is required to register under the Sex Offender Registration and Notification Act.  In 2011, Thompson moved to Corpus Christi, Texas, and then in 2013, he moved from Corpus Christi to McKinney, Texas.  Thompson failed to register and update his registration to reflect his move to McKinney, Texas.  Thompson was previously convicted for failing to register as a sex offender in the U.S. District Court for the Southern District of Texas in Corpus Christi in 2011.
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 United States Marshals Service and prosecuted by Assistant U.S. Attorneys William R. Tatum and Stevan A. Buys.

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                BEAUMONT, Texas – A 23-year-old Houston man has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.   

                Christopher M. Carmon Thomas pleaded guilty to bank robbery on July 29, 2014 before U.S. Magistrate Judge Zack Hawthorn.

                According to information presented in court, on June 3, 2014, Thomas entered the Wells Fargo Bank on Gladys Avenue in Beaumont, Texas and presented the bank teller with a demand note.  During the robbery, Thomas displayed a gun tucked into his pants by lifting his shirt.  Thomas fled the bank with $2,309.00.  Surveillance camera photographs were disseminated by the media and Thomas was identified by citizen tipsters and the victim bank teller. Thomas was taken into custody in Houston on June 25, 2014.

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

                This case is being investigated by the Federal Bureau of Investigation and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney John Craft.

               
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               SHERMAN, Texas – A 44-year-old Grand Prairie, 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.

               Daniel Martinez pleaded guilty on Jan. 28, 2014 to conspiracy to distribute narcotics and was sentenced to 87 months in federal prison on july 28, 2014 by U.S. District Judge Marcia Crone.

               According to information presented in court, in May 2010, Martinez became involved in a conspiracy to distribute marijuana and cocaine in the Eastern District of Texas.  Martinez used cellular telephones to conduct coded conversations about drug trafficking activity with various co-conspirators.  Martinez admitted responsibility for distributing approximately 900 kilograms of marijuana.

               On May 12, 2011, a federal grand jury returned a seven-count second superseding indictment against Martinez and 15 co-defendants, charging them with numerous federal drug trafficking conspiracy and firearm violations. 

               Twelve co-defendants have pleaded guilty and been sentenced as follows:

• Armando Basaldua – sentenced to 57 months
• Paola Alonso – sentenced to 21 months
• Armando Iniguez – sentenced to 6 months
• Guadalupe Patricia Rangel-Salazar – sentenced to 71 months
• Jorge Enrique Perez-Solis – sentenced to 71 months
• Diego Hernandez – sentenced to 57 months
• Daniel Hernandez-Gutierrez – sentenced to 69 months
• Jose Frederico Flores – sentenced to 262 months
• Orthon Carranza Rodriguez – sentenced to 30 months
• Jonathan Belen Lugo – sentenced to 24 months
• Juan Antonio Roslaes – sentenced to 60 months
• Oscar Omar Guerra-Moreno – sentenced to 6 months
• Guadalupe Chavez-Figueroa – sentenced to 60 months

               Two additional defendants, Eliezer Aleman and Luis Enrique Arguero, are currently fugitives from justice.

               This case is the result of an extensive joint investigation by the Organized Crime Drug Enforcement Task Force (OCDETF) joint investigation.  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, the Internal Revenue Service Criminal Investigation and Homeland Security Investigations. 

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               SHERMAN, Texas – A 51-year-old Dallas real estate recruiter has been sentenced to federal prison for bank fraud violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today. 

               Marcus Dewane Carr pleaded guilty on Feb. 13, 2014 to conspiracy to commit bank fraud and was sentenced to 30 months in federal prison today by U.S. District Judge Marcia Crone. 

                According to information presented in court, from July 2008 to August 2010, Carr conspired with others to defraud Wells Fargo Bank and Flagstar Bank by inflating the purchase price of residential properties in Dallas and requiring buyers to secure mortgage loans for the fraudulent amount.  Excess loan funds were then used to pay kickbacks to Carr, who recruited buyers, and others for arranging the sale of the properties. 

            President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes.  The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.

             This case was investigated by the HUD-OIG and Federal Home Finance Agency-OIG and prosecuted by Assistant U.S. Attorney J. Andrew Williams.

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       BEAUMONT, Texas – A 44-year-old Galveston, Texas man has been sentenced to federal prison for bank robbery in the Eastern District of Texas, announced U.S. Attorney John M. Bales. 
                 
       Brett Maurice Disiere pleaded guilty on Dec. 11, 2013 to bank robbery and was sentenced to 240 months in federal prison today by U.S. District Judge Thad Heartfield.

       According to information presented in court, on May 13, 2013, Disiere entered the Wells Fargo Bank located in the 4400 block of Dowlen Road in Beaumont, Texas, and presented the teller with a note demanding money while brandishing a knife.  Disiere fled the bank with $5,500.  He was identified from video surveillance camera photographs by tipsters after the robbery.  Disiere admitted to robbing the bank after he was arrested in Conroe, Texas on May 21, 2015 just after the robbery of another bank there.   Disiere was indicted by a federal grand jury on May 23, 2013.   

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

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                SHERMAN, Texas – A 48-year-old Collin County businessman has been sentenced to federal prison for bank fraud in the Eastern District of Texas, announced U.S. Attorney John M. Bales today. 

                William Guy Mortensen, formerly of Plano, Texas, pleaded guilty on Aug. 1, 2012 to bank fraud and was sentenced to 110 months in federal prison today by U.S. District Judge Ron Clark.  Judge Clark also ordered Mortensen to pay restitution in the amount of $1,984,496.32.

                According to information presented in court, Mortensen was the president and chief financial officer of Advanced Materials, Inc., a publicly traded company.  In July 2007, Mortensen requested that Chase Bank extend and enlarge an existing $1.5 million line of credit for Advanced Materials.  The loan was secured by Advanced Materials’ accounts receivable.  In order to induce the bank to extend the loan, and enlarge the line of credit to $2 million, Mortensen inflated the accounts receivable numbers to make the company’s financial condition appear better than it actually was

            President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes.  The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.

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

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            SHERMAN, Texas – A 35-year-old Allen, Texas man has pleaded guilty to mail fraud in in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.   

            Marcus Brian Curry pleaded guilty to mail fraud today before U.S. Magistrate Judge Don D. Bush.

            According to information presented in court, from June 2006 to February 2014, Curry, the owner and operator of South Coast Group, L.P., a real estate company located in Allen, Texas, devised a scheme to defraud certain homeowners and buyers.  To facilitate the scheme, Curry solicited distressed homeowners through mail advertisements and convinced them they could protect their credit by transferring the title to their homes to him with the promise he would assume responsibility for making the mortgage payments.  Curry would then sell the property to a new buyer representing that he was the true owner of the property, omitting that there was still an original lien holder, and in most cases, not paying the mortgage payments to the original lien holder as promised.  In order to conceal the existing lien from the buyer, Curry financed the mortgage himself and had the new buyer send payments to a private mail box under his control.  As a result of his fraudulent actions, Curry caused a loss to homeowners, buyers and lending institutions of approximately $2,362,350. 

            Curry faces up to 20 years in federal prison at sentencing.  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 Christopher A. Eason.

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 TYLER, Texas – A Dallas County, Texas, physician has been convicted of 15 counts of health care fraud violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today. 

Tariq Mahmood, 63, of Cedar Hill, Texas, was found guilty by a jury of conspiracy to commit health care fraud, seven counts of health care fraud, and seven counts of aggravated identity theft following a four day trial before U.S. District Judge Michael Schneider.

 According to information presented in court, Mahmood, a general practitioner, owned and operated several hospitals in the state of Texas, including Cozby Germany Hospital in Grand Saline, Renaissance Terrell Hospital in Terrell, Central Texas Hospital in Cameron, Community General Hospital in Dilley, and Lake Whitney Medical Center in Whitney.  From January 2010 to April 2013, Mahmood and others carried out a scheme to defraud Medicare and Medicaid through the submission of false and fraudulent claims.  Mahmood and others added, changed, deleted, and incorrectly sequenced diagnostic codes in a way that did not reflect the actual diagnoses and conditions of the patients.  They submitted false and fraudulent claims to Medicare and Medicaid based on the added, changed, deleted, and incorrectly sequenced diagnostic codes.  Mahmood and others also unlawfully used Medicare beneficiaries’ names and Medicare numbers in order to commit health care fraud.  Mahmood was indicted by a federal grand jury on April 11, 2013.

Mahmood faces up to 10 years in federal prison for the conspiracy conviction, 10 years for each health care fraud conviction and two years for each aggravated identity theft conviction.  A sentencing date has not been set.

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

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

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  SHREVEPORT, LA – A 52-year-old Shreveport, Louisiana attorney has been sentenced to federal prison in the Western District of Texas, announced U.S. Attorney John M. Bales of the Eastern District of Texas.

James Ward Davis pleaded guilty on Apr. 22, 2014 to a false statement in a bankruptcy proceeding and was sentenced to 60 months in federal prison today by U.S. District Judge Donald E. Walker.  Davis was also ordered to pay restitution in the amount of $1 million and then immediately remanded into custody of the U.S. Marshals Service.

According to information presented in court, Davis, a lawyer and former member of the Shreveport law firm Jones, Odom, Davis & Politz, operated and controlled Tower Hill Energy Company, LLC, which purported to be in the business of acquiring oil, gas, and mineral leases, interests, and royalties in north Louisiana.  In February 2009, Tower Hill entered into an agreement with a Texas company known as Furie Petroleum.  By way of the agreement, Tower Hill was obligated to acquire mineral rights on Furie’s behalf.  Furie agreed to deposit $1 million to be used by Tower Hill “solely for the acquisition of Mineral Leases or purchase contracts/options to acquire Mineral Leases.”  A client trust account for Davis’s law firm was used for escrow.  After Furie made the deposit, Davis transferred the $1 million out of the firm’s trust account into a Tower Hill escrow account and then used the funds to address personal and business expenditures.  In June 2010,Davis and his wife filed for Chapter 7 bankruptcy in the Western District of Louisiana.  They subsequently sought to convert the bankruptcy case from Chapter 7 to Chapter 11.  A hearing was held on that motion in August 2010.  During the proceeding, Davis falsely stated under oath that Furie was aware of the disposition of the $1million deposit after he removed the funds from the client trust account.  In truth, at no time prior to litigation, did Davis advise Furie or its representatives that he had transferred the money out of the Tower Hill escrow account and used the funds for personal and unrelated business purposes.

This case was investigated by the Federal Bureau of Investigation and prosecuted by Eastern District of Texas Assistant U.S. Attorney Frank Coan.       

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    TYLER, Texas – A 60-year-old Tyler, Texas man was sentenced to federal prison for making false statements on a loan application in the Eastern District of Texas, announced U.S. Attorney John M. Bales today. 
                 
Bobby Gene Loggins pleaded guilty on Dec. 5, 2013 to making false statements to a bank and was sentenced to 51 months in federal prison on July 22, 2014 by U.S. District Judge Leonard E. Davis.  Loggins was also ordered to pay restitution in the amount of $2,773,371.52.

According to information presented in court, Loggins has been affiliated with Loggins Meat Company (LMC) in Tyler for more than 30 years.  During most of that time, Loggins served as President and Chief Executive Officer of LMC.  The company was founded in 1940 by Loggins’ father and operates as a wholesaler, retailer, and processor of meat and meat products.  In March 2009, Loggins applied to Bank of Tyler for a revolving line of credit.  In connection with the loan application, Loggins provided fraudulent financial information for LMC.  Following approval of the loan, Loggins continued to provide false financial data when seeking advances on the credit line.  Ultimately, LMC ceased operations in about August 2010. 

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

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      BEAUMONT, Texas – The organizer and leader of a large scale drug trafficking ring responsible for moving multi-kilogram quantities of illegal drugs from Mexico to the United States has been sentenced to federal prison in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

Alejandro “Alex” Gonzales, 36, of Alvin, Texas, pleaded guilty on Jan. 30, 2014 to conspiring to possess with the intent to distribute over 5 kilograms of cocaine, over 1,000 kilograms of marijuana, and over 500 grams of methamphetamine and was sentenced to 270 months in federal prison today by U.S. District Judge Thad Heartfield.

According to information presented in court, Gonzales began acquiring multi-kilogram quantities of cocaine, marijuana, and methamphetamine from drug cartel suppliers in Mexico sometime in the late 2000’s.  Those narcotics were subsequently smuggled into the United States and transported to Alvin, Texas for distribution.  Gonzales and other members of the drug ring coordinated the sale of those narcotics to customers located in Texas, Oklahoma, Louisiana, Alabama, Mississippi, Florida, North Carolina, New York, and New Jersey.

On Aug. 8, 2013, a federal grand jury returned a six-count second superseding indictment against Gonzales and 27 other codefendants, charging them with numerous federal drug trafficking conspiracy and firearm violations. 

                During the course of the investigation, state and federal agents successfully arrested 40 individuals and seized large quantities of cocaine, marijuana, methamphetamine, $766,577 in U.S. currency, 30 vehicles, a boat, three residences, and 25 firearms. This case was the result of an extensive two and a half year joint investigation by the Organized Crime Drug Enforcement Task Force (OCDETF).  The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. 

This investigation was conducted by the U.S. Drug Enforcement Administration Galveston Resident Office, the Miami and Houston Division Offices, the McAllen District Office, and the Dickinson Police Department, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives, Federal Bureau of Investigation, Internal Revenue Service, U.S. Customs and Border Patrol, U.S. Immigration and Customs Enforcement/Homeland Security Investigations, U.S. Marshals Service, Marine Interdiction Agency, Texas Department of Public Safety, Brazoria, Galveston, Harris, and Jefferson County (Texas) Sheriff’s Offices, and the police departments of Alvin, Beaumont, Galveston, Houston, League City, Pasadena, and Pearland, Texas.  This case is being prosecuted by Assistant U.S. Attorneys Baylor Wortham and Michelle Englade.

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       TEXARKANA, Texas – A 35-year-old New Boston, Texas woman has been sentenced to 18 years in federal prison on a biological weapons charge in the Eastern District of Texas, announced U.S. Attorney John M. Bales and Assistant Attorney General for National Security John Carlin today. 
             
On December 10, 2013, Shannon Guess Richardson pleaded guilty to an Information charging her with possession of a toxin for use as a weapon before U.S. Magistrate Judge Caroline M. Craven.  Richardson was named in an indictment returned by a federal grand jury on June 27, 2013, charging her with threatening the President of the United States, mailing a threatening letter to New York City Mayor Michael Bloomberg, and mailing a threatening letter to Mark Glaze in Washington, D.C. 

Richardson was sentenced to 216 months in federal prison today by U.S. District Judge Michael H. Schneider and ordered to pay restitution in the amount of $367,222.29.

“Today's sentencing brings an appropriate and just end to what is surely one of our most unusual, even bizarre cases,” said U.S. Attorney Bales.  “The investigation was also very challenging and I hope that East Texans are encouraged to know that their East Texas law enforcement proved to be amazingly resourceful, determined and focused in all facets of this prosecution. It was truly a great job.”

According to the information presented in court, during April-May 2013, Richardson made several online purchases of items for the purpose of producing ricin.  These supplies included castor bean seeds and sodium hydroxide (lye).  Ricin is a biological toxin that can be fatal if ingested, inhaled, or injected.  There is no known antidote or cure for ricin poisoning. 

Richardson subsequently placed ricin onto threat letters addressed to President Barack Obama, Mayor Michael Bloomberg and Mark Glaze.  On May 20, 2013, Richardson mailed the three threatening letters from the New Boston, Texas, Post Office.  On May 30, 2013, Richardson traveled to the Shreveport, LA, Police Department and reported that her husband was responsible for the ricin-laced letters.

Richardson was arrested on June 7, 2013, in Mt. Pleasant, Texas, and has been detained since that time.

This case was investigated by the Federal Bureau of Investigation, the U.S. Secret Service, the U.S. Postal Inspection Service, the Texas Department of Public Safety, the New Boston, Texas Police Department, the Shreveport, Louisiana, Police Department and the New York City Police Department.   This case was prosecuted by Assistant U.S. Attorneys Frank Coan, Ryan Locker, and Brit Featherston as well as Trial Attorney Jolie Zimmerman of the Justice Department’s National Security Division.

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

                On July 15 2014, a combined task force of federal, state and local law enforcement executed six federal arrest warrants and four federal search warrants in the Tyler, Texas and Gladewater, Texas area as a result of a joint investigation by the Federal Bureau of Investigation, Smith County Sheriff's Office, U.S. Drug Enforcement Administration, and the Texas Racing Commission. 

The operation resulted in the arrest of all six defendants and the seizure of over $30,000 cash, methamphetamine, and several firearms.  The following defendants were arrested and appeared before U.S. Magistrate Judge K. Nicole Mitchell on charges of conspiracy to distribute methamphetamine, prohibition of illegal gambling businesses, and conspiracy to money launder: OMAR BONIFACIO BONILLA, a/k/a “Pelon,” 32, of Tyler; RENAULT LANSING KAY, a/k/a “Nault Pete,” a/k/a “Chocolate,” 47, of Tyler;               JESSICA MARIA BONILLA, 31, of Tyler;                                    JOEL ORLANDO BONILLA-LOYA, 36, of Tyler;                                            GUILLERMO RIVERA-BONILLA, 58, of Tyler; and                          
SHEENA SHAVETTE PERRY, 31, of Tyler.                             

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

Homeland Security-Deportation and Removal Operations, Tyler Police Department, and the Texas Department of Public Safety also assisted in the arrests and searches.  This case is being prosecuted by Assistant U.S. Attorneys Frank Coan and Richard Moore.

A complaint or arrest is not evidence of guilt.  All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

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         BEAUMONT, Texas – A 33-year-old Port Neches, Texas man has been sentenced to 25 years in federal prison for child pornography violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

         Christopher Dale Harrison pleaded guilty on Nov. 19, 2013 to production of child pornography and was sentenced to 300 months in federal prison today by U.S. District Judge Thad Heartfield.

         According to information presented in court, on Apr. 18, 2013, a federal search warrant was executed at Harrison’s Port Neches home. During the search, agents located and seized an external hard drive and a cell phone from the home and a camera owned by Harrison that had been recently pawned at a local pawn shop. Forensic examinations of the items revealed they contained images of child pornography. Agents were able to determine that the images containing child pornography on the camera were taken at Harrison’s residence in Port Neches and involved a child younger than 18 years of age engaged in sexually explicit conduct and that Harrison had persuaded and ordered this minor to engage in this conduct.

         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, HSI-ICE, the Port Neches Police Department, the Beaumont Police Department, and the Orange County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Michelle Englade.

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 TYLER, Texas — A former employee of an East Texas hospital has been indicted for criminal violations of the Health Insurance Portability and Accountability Act, more commonly known as  HIPAA, in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

Joshua Hippler, 30, formerly of Longview, Texas, was indicted on charges of Wrongful Disclosure of Individually Identifiable Health Information.  According to the indictment, from December 1, 2012, through January 14, 2013, Hippler, who was then an employee of a covered entity under HIPAA, obtained protected health information with the intent to use the information for personal gain.  HIPAA contains provisions protecting the privacy of individually identifiable health information.

If convicted, Hippler faces up to ten years in prison.                                                                                                  

The investigation leading to the charges was conducted by agents from the U.S. Department of Health and Human Services - Office of Inspector General (HHS-OIG) and the U.S. Postal Inspection Service.  Assistant United States Attorney Nathaniel C. Kummerfeld is prosecuting the case.

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.

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 BEAUMONT, Texas – A 23-year-old Houston man has been arrested for a bank robbery in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.   

Christopher M. Carmon Thomas was taken into custody in Houston on June 25, 2014 and went before U.S. Magistrate Judge Keith F. Giblin on June 26, 2014 for an Initial Appearance.

 According to information presented in court, on June 3, 2014, Thomas entered the Wells Fargo Bank on Gladys Avenue in Beaumont, Texas and presented the bank teller with a demand note.  During the robbery, Thomas displayed a gun tucked into his pants by lifting his shirt.  Thomas fled the bank with $2,309.00.  Surveillance camera photographs were disseminated by the media and Thomas was identified by citizen tipsters and the victim bank teller.

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

            This case is being investigated by the Federal Bureau of Investigation and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney John Craft.

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.