Eastern District of Texas

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      BEAUMONT, Texas – A Center, Texas couple now living in Elgin, Texas, has pleaded guilty to federal violations in a health care fraud scheme in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Cathy Harvill, 57, and William Harvill, also known as Bill Harvill, 60, pleaded guilty to conspiracy to commit health care fraud on Feb. 18, 2014, before U.S. Magistrate Judge Keith Giblin.. 
According to information presented in court, the Harvills owned and operated North East Texas EMS.  From January 2007 through March 2012, the defendants carried out a scheme to defraud Medicare and Medicaid by submitting false and fraudulent claims for nonemergency, scheduled, repetitive ambulance services which did not meet Medicare program coverage criteria.
The defendants each face up to 10 years in federal prison at sentencing.  Sentencing dates have not been set.
This case is being investigated by the U.S. Department of Health and Human Services – Office of Inspector General (HHS-OIG), the Texas Office of the Attorney General – Medicaid Fraud Control Unit (OAG-MFCU), and the U.S. Department of Labor – employee Benefits Security Administration (DOL-EBSA).   This case is being prosecuted by Assistant U.S. Attorneys Nathaniel C. Kummerfeld and Tom Gibson and Special Assistant U.S. Attorney Kenneth C. McGurk.

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      TYLER, Texas – A 52-year-old Farmersville, Texas man has been sentenced to federal prison for firearms violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today. 

Charles Alan Curington pleaded guilty on Oct. 3, 2013, to attempting to sell a machinegun and was sentenced to 27 months in federal prison on Feb. 18, 2014, by U.S. District Judge Michael H. Schneider.  

According to information presented in court, Curington recruited a do-defendant, Craig Marcus Cooper, to sell a machinegun for a share of the sale proceeds.  On Jan. 31, 2012, Cooper and Colten Barrow traveled together to Duke’s Truck Stop on Highway 64 in Van Zandt County, Texas to meet an individual interested in buying the machinegun.  The defendants intended to sell the firearm to the individual for $10,000.  However, the buyer was actually an undercover federal agent.  The defendants were detained and the 9 mm, fully automatic machine gun with an attached silencer was seized.  The machinegun had been reported stolen approximately 10 years earlier.  A federal grand jury returned an indictment on Mar. 27, 2013, charging Curington, Cooper and Barrow with firearms violations. 

            On Jan. 10, 2014, Cooper was sentenced to 18 months in federal prison.  On Jan. 15, 2014, Barrow was sentenced to 24 months in federal prison.   
This case was prosecuted as part of the Project Safe Neighborhoods Initiative. Project Safe Neighborhoods is aimed at reducing gun and gang violence, deterring illegal possession of guns, ammunition and body armor, and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state and local law enforcement agencies.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and prosecuted by Assistant U.S. Attorney Jim Noble.

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       TYLER, Texas – A 43-year-old Henderson, Texas woman has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales. 
                 
Tracy A. Bojorquez, former Postmaster Relief at the Joinerville Post Office, has pleaded guilty to misappropriation of United State postal funds today before U.S. Magistrate Judge John D. Love.

According to information presented in court, from July 2012 to May 2013, Bojorquez was the relief postmaster at the Joinerville Post Office in Rusk County, Texas.  During that time, she embezzled payments she received at the Post Office for postal money orders, post office box rental fees, and the sale of U.S. postage stamps.  The unreimbursed losses to the U.S. Postal Service amounted to $5,132.23.  Bojorquez was indicted by a federal grand jury on Nov. 20, 2013. 

Bojorquez faces up to 10 years in federal prison.  A sentencing date has not been set.

This case is being investigated by the U.S. Postal Service, Office of Inspector General and prosecuted by Assistant U.S. Attorney Allen Hurst.

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       SHERMAN, Texas – A 39-year-old McKinney, Texas woman has pleaded guilty to federal violations stemming from her employment as a translator embedded with several U.S. military units in Afghanistan, announced U.S. Attorney John M. Bales of the Eastern District of Texas and U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. 

                Farida Yusufi, a U.S. citizen of Afghan origin, pleaded guilty to eight counts of a nine-count indictment, unsealed in August 2013, today before U.S. Magistrate Judge Amos Mazzant.  Specifically, Yusufi pleaded guilty to five counts of making false statements to a federal agency; two counts of altering a military, naval or official pass; and one count of theft of government records.  She has been in federal custody since her arrest in August 2013 by special agents with the FBI’s North Texas Joint Terrorism Task Force (JTTF).

According to documents filed in court, Yusufi received a final Secret security clearance in August 2008, but it was suspended on Oct. 1, 2009, and was never reinstated.  Despite those facts, in an interview conducted by FBI and U.S. Army counterintelligence agents in Afghanistan in September 2011, Yusufi falsely told the federal agents that she possessed a Top Secret security clearance “in process,” which she knew was a false and misleading statement.  In that interview, to mislead the agents who were trying to determine whether she was gaining access to classified information at a U.S. base in Afghanistan without authorization, she also falsely told them that she had never been fired from a job.  In fact, she had previously been fired as a translator while working overseas for the U.S. military.
On Mar. 22, 2012, Yusufi made false statements to FBI agents about whether she had provided false information on her security clearance application form and whether she had actually been employed by a particular U.S. government contractor.  She also made those false statements to mislead the FBI agents as to her actual statements to other federal agents and her employment history. 
On Feb. 23, 2012, Yusufi again made a false statement to federal agents by stating that she had not applied for a position as a role player for a U.S. government contractor since her return from Afghanistan in September 2011, when, in fact, she had applied for such a position in June 2011 and inquired again about that application upon her return from Afghanistan earlier in September.
On Jan. 18, 2010, Yusufi falsely made, altered and tampered with an official military or government pass, that is a Letter of Authorization issued by or under the authority of the U.S. government, and on Mar. 13, 2013, Yusufi possessed an altered Letter of Authorization.  A Letter of Authorization is the equivalent of a set of military orders for a government contractor, such as a contract linguist being deployed overseas, and it enables access to military transportation and military bases.  The Letters of Authorization that Yusufi altered and possessed were never issued to her; rather, the original Letter of Authorization was issued to her former spouse.
On Mar. 13, 2013, the FBI executed a search warrant at Yusufi’s home in McKinney.  On her computer, the FBI discovered sensitive U.S. military records that she obtained while embedded with the U.S. military and that she had no authority to possess or retain.  She admits that she knew she had no right to possess or keep those records, and that she had converted them to her own use.
Statutorily, Yusufi faces a maximum penalty of five years in federal prison and a $250,000 fine for each of the false statement and altering a military, naval or official pass counts, and 10 years in federal prison and a $250,000 fine for the one count of theft of government records.  However, according to the plea agreement, if acceptable by the Court, the parties have agreed that a sentencing range of 33 to 41 months in federal prison is an appropriate sentencing range.  Yusufi also agreed to pay a $50,000 fine.  Yusufi acknowledges that she may not withdraw her plea should the Court choose not to follow these sentencing recommendations.  A sentencing date was not set.
This case was investigated by the FBI’s North Texas JTTF.
Assistant U.S. Attorney Andrew Stover, of the Eastern District of Texas, and Assistant U.S. Attorneys Errin Martin and Mark Penley, of the Northern District of Texas, are prosecuting.

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        BEAUMONT, Texas – A 31-year-old Woodville, Texas woman has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales. 

                Kari Mannino pleaded guilty to conspiracy to commit health care fraud today before U.S. Magistrate Judge Keith F. Giblin. 

According to the information presented in court, from January 2008 to December 2011, Mannino was the office manager for Beaumont Medical Clinic on Eastex Freeway in Beaumont.  During that time, Mannino conspired with co-defendant, Dr. John Q.A. Webb, Jr., to claim Webb had treated patients when he had not.  Mannino then submitted, or had someone else submit, false claims to Medicaid and Medicare indicating a licensed physician and provided the health care services.  False claims submitted to Medicare were in excess of $12,000.  The total fraudulent activity resulted in a loss to both Medicare and Medicaid of over $30,000.  Mannino and Webb were indicted by a federal grand jury on Dec. 5, 2013.   

Mannino faces up to 10 years in federal prison.  A sentencing date has not been scheduled.

This case is being investigated by the Texas Attorney General’s Medicaid Fraud Control Unit, Department of Health and Human Services, Federal Bureau of Investigation, and the U.S. Drug Enforcement Administration.  This case is being prosecuted by Special Assistant U.S. Attorney Catherine Levacy Cockrell.

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

Michael Joseph Barrett IV pleaded guilty to possession with intent to distribute methamphetamine on Feb. 11, 2014 before 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, 2014, charging Barrett with drug trafficking violations. 

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

                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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         SHERMAN, Texas – A 55-year-old Houston man has been sentenced to federal prison for his role in a multi-state health care fraud scheme in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

Peter Pedro Egede pleaded guilty on Apr. 4, 2013, to health care fraud and was sentenced to 87 months in federal prison today by U.S. District Judge Marcia A. Crone.  Egede was also ordered to pay restitution in the amount of $1,635,447.60 to the Medicare and Medicaid programs and a fine of $12,500.

According to the indictment, from May 2002 to June 2003, Egede conspired with others to defraud Medicare and Medicaid through the mass marketing of motorized wheelchairs.  As part of the scheme, the defendant and his co-conspirators recruited Medicare and Medicaid beneficiaries by representing that the government was “giving away” motorized wheelchairs.  The recruiters would secure the beneficiaries protected health information, including names, dates of birth, and Medicare numbers from mostly elderly individuals.  Egede and his co-conspirators created false medical necessity certificates for each beneficiary by drafting, without authorization, prescriptions from doctors who had never examined those beneficiaries. Often, Egede billed Medicare for motorized wheelchairs, but instead delivered less expensive scooters to the beneficiaries.  In other instances, Egede did not deliver anything even though Medicare had paid for a motorized wheelchair.  Claims were submitted by the defendant for over 500 beneficiaries located in Texas, Oklahoma, Arkansas, Louisiana, and Mississippi.  A great portion of the beneficiaries resided in counties within the Eastern District of Texas, including Smith, Bowie, Denton and Lamar counties.  Egede submitted false and fraudulent claims to Medicare of more than $4.1 million and obtained more than $1.6 million in claims paid.  Egede was indicted by a federal grand jury on June 15, 2006.

This case was investigated by the U.S. Department of Health and Human Services – Office of the Inspector General (HHS-OIG), the Federal Bureau of Investigations and the Texas Office of the Attorney General – Medicaid Fraud Control Unit (OAG-MFCU).  This case was prosecuted by Special Assistant U.S. Attorney Alma Hernandez.

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          TYLER, Texas – The former Chief Financial Officer for Dr. Tariq Mahmood’s Texas hospitals has been charged with health care fraud violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

Joe White, 66, of Cameron, Texas, was indicted by a federal grand jury on Jan. 22, 2014, and charged with making false statements to the Centers for Medicare and Medicaid Services (CMS) and aggravated identity theft.  White appeared for an arraignment hearing today before U.S. Magistrate Judge John D. Love.

The American Recovery and Reinvestment Act of 2009 established incentive payments under the Medicare and Medicaid programs for eligible professionals and eligible hospitals that meaningfully use Certified Electronic Health Record Technology.  The incentive programs were created to promote the adoption of health information technology and encourage the electronic exchange of health information in order to improve the quality and lower the cost of health care in the United States.  Upon meeting certain conditions, an eligible hospital could qualify for incentive payments from CMS if the hospital attested that it had meaningfully used Certified Electronic Health Record Technology for the prior fiscal year.

According to the indictment, on Nov. 20, 2012, White falsely attested to CMS that Shelby Regional Medical Center (Shelby Regional) met the meaningful use requirements for the 2012 fiscal year.  However, Shelby Regional relied on paper records throughout the fiscal year and only minimally used electronic health records.  To give the false appearance that the hospital was actually using Certified Electronic Health Record Technology, White directed its software vendor and hospital employees to manually input data from paper records into the electronic health record (EHR) software, often times months after the patient was discharged and after the end of the fiscal year.

The indictment further alleges that White falsely attested to the hospital’s meaningful use by using another person’s name and information without that individual’s consent or authorization.  As a result of the false attestation, CMS paid Shelby Regional $785,655.00.  In total, hospitals operated by Dr. Mahmood, including Shelby Regional, were paid $16,794,462.66 by the Medicaid and Medicare EHR incentive programs for fiscal years 2011 and 2012.

“As more and more federal dollars are made available to providers to adopt Electronic Health Record systems, our office is expecting to see more cases like this one,” said Special Agent in Charge Mike Fields of the U.S. Department of Health and Human Services Office of Inspector General's (OIG) Dallas Regional Office.  “The Office of Inspector General is committed to protecting the millions of taxpayer dollars used to pay providers to adopt Electronic Health Record systems.”

If convicted, White faces up to five years in federal prison for making a false statement and up to two years in federal prison for aggravated identity theft.

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.  Assistant U.S. Attorney Nathaniel C. Kummerfeld and Special Assistant U.S. Attorney Kenneth C. McGurk are prosecuting this 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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         SHERMAN, Texas – A 46-year-old Frisco, Texas man has been sentenced for his role in a mortgage fraud scheme in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

Michael Burnham pleaded guilty in July 2013 to conspiracy to commit bank fraud in connection with a FHA insured home loan and was sentenced to 51 months in federal prison today by U.S. District Judge Marcia Crone.  Burnham was also ordered to pay restitution in the amount of $1.3 million.

According to court documents, between March and August 2010, Burnham conspired with another individual, Michael Battista, to defraud Flagstar Bank, a federally insured bank.  Burnham agreed with Battista that Burnham would recruit buyers to purchase houses that Battista owned.  As an incentive to purchase the house, Burnham would promise the buyer a cash payment following the closing of the sale.  Battista and Burnham fraudulently overstated the true purchase price of the houses in sales contracts and closing documents.  This caused the buyers’ mortgage lenders, such as Flagstar Bank, to unknowingly fund purchase loans that generated more sales proceeds to Battista than what Battista was purportedly demanding for the houses. Battista then used the excess sales proceeds to pay a kickback to Burnham for recruiting the buyer, and Burnham would make the cash incentive payment to the buyer out of his kickback funds.  The scheme caused a loss to mortgage lenders of more than $1.3 million.  Burnham was ordered to make restitution in that amount to the victims of his scheme.  Battista previously pleaded guilty and has been sentenced for his participation in the scheme. 

           This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force.

            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.

The case was investigated by the Federal Housing Finance Agency Office of Inspector General and the Department of Housing and Urban Development Office of Inspector General.  The case was prosecuted by Assistant U.S. Attorney Andy Williams.  

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           BEAUMONT, Texas – A Dallas tax preparer has been indicted for federal violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

                Shannon Tecoko Mays, 36, of Dallas, was indicted today by a federal grand jury charging him with conspiracy to commit wire fraud. 

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

For the tax year 2011, Mays filed 4,226 tax returns claiming approximately $3,150,406.  If convicted, Mays 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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            BEAUMONT, Texas – An Assistant United States Attorney in the Beaumont Office of the U.S. Attorney has been appointed to serve as the next Jefferson County District Attorney, announced U.S. Attorney John M. Bales.

On Jan. 27, 2014, Texas Gov. Rick Perry appointed AUSA Cory Crenshaw as the District Attorney for Jefferson County, Texas.  Crenshaw replaces long-time DA Tom Maness who retired in December 2013. 

Crenshaw, 34, is a native of Beaumont and a 1997 graduate of Kelly High School.  Crenshaw attended Baylor University where he received a degree in history and then earned his law degree at Texas Tech University in 2004. Crenshaw began his career in prosecution in Bryan/College Station in 2005 as a state felony prosecutor where his caseload focused mainly on child sex predators and gang offenders. In 2010, Crenshaw began his federal career in the Southern District of Texas as an Assistant U.S. Attorney in McAllen, Texas.  His heavy border caseload focused on narcotics, immigration, and firearm offenses.  He joined the Eastern District of Texas in December 2012 where he served in the Beaumont office prosecuting complex drug trafficking crimes as part of the Organized Crime Drug Enforcement Task Force (OCDETF).   

“We are excited for Cory and Jefferson County,” said U.S. Attorney Bales.  “Judge Maness’ legacy of achievement will not be tarnished by Cory’s stewardship.  Naturally, we look forward to continuing our close partnership with the Jefferson County District Attorney’s Office.”

            The Eastern District of Texas is comprised of 43 counties stretching from the Gulf of Mexico to the Oklahoma/Texas border.  There are 6 staffed offices located in Beaumont, Lufkin, Tyler, Texarkana, Plano and Sherman with over 50 federal prosecutors.

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            BEAUMONT, Texas – A task force of federal, state, and local law enforcement have begun arresting 32 defendants charged with RICO and immigration violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales and Brian M. Moskowitz, special agent in charge of Homeland Security Investigations in Houston today. 

According to court documents, two employment referral businesses operating out of Houston recruited unauthorized aliens, mostly from Mexico and Central America, for work in the Chinese restaurant industry.  These workers routinely worked  12 hours a day, six days a week, they were not paid overtime, not permitted to receive tips or gratuities, and were paid in cash by the restaurants.  The restaurants profited by avoiding payment of employment taxes and did not provide any benefits such as health insurance, vacation or sick time.  Workers were paid far less than minimum wage, did not receive health examinations, food safety training, or any job training at any time while employed. 

                Additionally, these workers were subject to unfavorable living arrangements provided by the restaurant operators, either at the operator’s residence or at another off-site residential location. Living arrangements were overcrowded and sometimes consisted of air mattresses or floors for sleeping.  For instance, 18 people were found to be housed in a 2000 square foot house.

                Arrests of the indicted individuals began on Jan. 30, 2014.  The following individuals have been charged:

• Lina Sun, 54, of Houston;
• Chenglun Ma, 57, of Houston;
• Chang Jin Song, 56, of Houston;
• Zhiqiang Li, 59, of Houston;
• Chenzong Yu, 44, of Houston;
• Jin Zhu Wang, 50, of Port Arthur, Texas;
• Li Qiu Jiang, 52, of Port Arthur, Texas;
• Hua Zhu Dong, 45, of Port Arthur, Texas;
• Wei Ji Zheng, 38, of San Marcos, Texas;
• Wen Juan Zhang, 34, of San Marcos, Texas;
• Chanjuan Xie, 31, of Sanger, Texas;
•  Xue Fang He, 28, of Sanger, Texas;
• Zhen Yin Weng, 55, of Little Rock, AR;
• Dan Hui Lu, 32, of Dallas;
• Zeng Yu Huang, 50, of Mineola, Texas;
• Jian Tuan Dong, 47, of Rockwall, Texas;
• Jian Jun Ma, 60, of Houston;
• Liang Gao, 42, of Houston;
• Shoufang Jiang, 43, of Houston;
• Jiang Ping Zhang, 65, of Houston;
• Wen Jian Wen, 26, of Houston;
• Xiaofeng Zhu, 43, of Sugar Land, Texas;
• Xianghong Sun, 54, of Missouri City, Texas;
• Yan Mao, 39, of Brownwood, Texas;
• Yip Keung Leung, 40, of Brownwood, Texas;
• Selena Ling Feng, 37, of Nacogdoches, Texas;
• Zongxian Zhu, 41, of Nacogdoches, Texas;
• Jing Heng Jiang, 51, of Bastrop, LA;
• Hua Lin, 30, of Allen, LA;
• Houng Chen, 39, of Abbeville, LA; and
• Jin Zhu Fang, 38, of Abbeville, LA.

                Federal indictments were returned on Nov. 7, 2013, charging 32 individuals with RICO conspiracy and conspiracy to transport, harbor, and encourage and induce aliens to reside in the United States.  If convicted, defendants face up to 20 years for the RICO charge and up to 10 years for the immigration conspiracy charge.       

“The Hong Li Job Agency and the Tai Shan Employment Agency operated a ‘take-out and delivery service’ for restaurants across the region- but they didn’t deliver food.  Instead, they delivered people illegally present in the United States to greedy restaurant owners and managers looking for cheap labor,” said Brian M. Moskowitz, special agent in charge of Homeland Security Investigations in Houston.  “The illicit efforts of the defendants and others like them help push those unlawfully here deeper into the shadows, and the jobs they market serve as a magnet for future illegal immigration.”

This case is being investigated by U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI) offices in: Houston, Dallas, San Antonio and New Orleans; U.S. Customs and Border Protection, Office of Air and Marine; U.S. Marshals; Police Department’s in Houston, Port Author and Beaumont.  This case is being prosecuted by Assistant U.S. Attorneys in Beaumont.

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

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              BEAUMONT, Texas – A 50-year-old Cameron, LA, man has been sentenced to federal prison for bank robbery in the Eastern District of Texas, announced U.S. Attorney John M. Bales. 
                 
              Allen Keith Miller pleaded guilty on Aug. 28, 2013 to bank robbery and was sentenced to 57 months in federal prison on Jan. 24, 2014 by U.S. District Judge Marcia Crone.

              According to information presented in court, on June 25, 2013, Miller entered the Capital One Bank branch office located on 16th Street in Orange, Texas, wearing a blonde wig, baseball cap, long-sleeve shirt, tan pants and a black knee brace.  Miller approached a bank teller and presented a hand-written note advising that the bank was being robbed.  Miller also advised that he was armed although a weapon was not displayed.  Media outlets broadcast footage of the bank robbery and Miller was identified by citizens.  Miller was stopped by law enforcement officers in Louisiana, at which time items from the robbery, including the wig, baseball cap, clothing, and knee brace, were located in Miller’s vehicle. Miller was indicted by a federal grand jury on July 11, 2013 and charged with bank robbery.   

              Miller has also been ordered to pay restitution in the amount of $963.

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

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                SHERMAN, Texas – Five men have been sentenced to federal prison this week for prescription drug trafficking in the Eastern District of Texas, announced U.S. Attorney John M. Bales today. 

                Khuda Balouch Buksh, 47, a Pakistani national living in Duncanville, Texas, pleaded guilty on Jan. 16, 2013 to conspiracy to possess with intent to distribute a controlled substance and was sentenced to 36 months in federal prison on Jan 24, 2014 by U.S. District Judge Marcia Crone.  Buksh was ordered to be deported following the completion of his prison sentence. 

                Sikander Ali Teepu, 29, a Pakistani national living in Wantagh, NY, pleaded guilty on Aug. 26, 2013 to conspiracy to possess with intent to distribute a controlled substance and was sentenced to 18 months in federal prison on Jan. 24, 2014 by Judge Crone. 

                Haroon Ahmad Tanooli, 31, a Pakistani national living in Sugarland, Texas, pleaded guilty on Aug. 13, 2013, to conspiracy to possess with intent to distribute a controlled substance and was sentenced to 18 months in federal prison on Jan. 24, 2014 by Judge Crone.

                Mustajab Ali Raza, 28, a Pakistani national living in Brighton, MN, pleaded guilty on Aug. 21, 2013 to conspiracy to possess with intent to distribute a controlled substance and was sentenced to 12 months and one day in federal prison on Jan. 22, 2014 by Judge Crone.  Raza was ordered to be deported following the completion of his prison sentence. 

                Saaim Aslam, 31, of Irvine, CA, pleaded guilty on Aug. 26, 2013, to conspiracy to possess with intent to distribute a controlled substance and was sentenced to 12 months and one day in federal prison on Jan. 22, 2014 by Judge Crone. 

                According to information presented in court, beginning in 2009, the defendants conspired to import and distribute controlled substances, specifically Methylphenidate, Amphetamine, Oxycodone, Hydrocodone, alprazolam, and Diazapam, to others by way of a large on-line pharmaceutical operation.  A federal indictment was returned by a grand jury on April 12, 2012 charging federal drug trafficking violations.

                “The sentencing of these defendants demonstrates DEA’s commitment, along with our Federal partners from IRS, Homeland Security Investigations, the United States Postal Inspection Service, and the U. S. Attorney’s Office, to rid our communities here in North Texas of the sweeping epidemic of on-line prescription drug fraud and abuse,” said Daniel R. Salter, Special Agent In Charge of the Dallas Field Division.  “Enforcement entities nationwide are aggressively pursuing prosecutions of any individuals who attempt to import and distribute these adulterated, misbranded, and counterfeit controlled substances.  We are proud to be a part of these efforts.”

                “IRS Criminal Investigation assisted DEA by utilizing our financial expertise to follow the money and unravel a complex web of international money laundering transactions that spanned multiple countries,” said Damon Rowe, IRS CI Special Agent in Charge in Dallas, Texas.  “This analysis resulted in uncovering the sophisticated financial network that supported this drug trafficking organization.”

                This case was the result of an 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 Drug Enforcement Administration and the Internal Revenue Service – Criminal Investigation and prosecuted by Assistant U.S. Attorney Stevan Buys.

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TYLER, Texas – A 22-year-old Shreveport, Louisiana 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. 

Brandon Johnson pleaded guilty on Nov. 6, 2013, to possession with intent to distribute approximately 4.5 kilograms of marijuana and was sentenced to 10 months in federal prison today by U.S. District Judge Michael H. Schneider.

According to information presented in court, on Mar. 19, 2013, Johnson was stopped by a Texas DPS Trooper in the eastbound lane of IH-20 in Van Zandt County, Texas for speeding.  During the course of the stop the officer detected the odor of marijuana coming from inside Johnson’s car and detained Johnson in order to conduct a search.  The trooper found 10 bundles of marijuana that weighed approximately one pound each in two boxes on the back seat floorboard.  The trooper also found a loaded .40 caliber, semi-automatic pistol on the driver’s side floorboard.   As part of his sentence, Johnson must forfeit the seized weapon and ammunition to the United States Attorney’s Office. Johnson must also pay a $10,000.00 judgment to be levied against him personally in order to forfeit money he made selling marijuana.

This case was investigated by the Texas Department of Public Safety, Highway Patrol, and the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives and prosecuted by Assistant U.S. Attorney Jim Noble.

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TYLER, Texas – A 22-year-old Quinlan, Texas man has been sentenced to federal prison for firearms violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today. 

Colten David Barrow pleaded guilty on Sep. 11, 2013, to attempting to sell a machinegun and was sentenced to 24 months in federal prison on Jan. 15, 2014, by U.S. District Judge Michael
H. Schneider.  

According to information presented in court, on Jan. 31, 2012, Barrow and Craig Marcus Cooper traveled together to Duke’s Truck Stop on Highway 64 in Van Zandt County, Texas to meet an individual interested in buying the machinegun.  The defendants intended to sell the firearm to the individual for $10,000.  However, the buyer was actually an undercover federal agent.  The defendants were detained and the 9 mm, fully automatic machine gun with an attached silencer was seized.  A federal grand jury returned an indictment on Mar. 27, 2013, charging the defendants with firearms violations. 

            On Jan. 10, 2014, Cooper was sentenced to 18 months in federal prison. 
This case was prosecuted as part of the Project Safe Neighborhoods Initiative. Project Safe Neighborhoods is aimed at reducing gun and gang violence, deterring illegal possession of guns, ammunition and body armor, and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state and local law enforcement agencies.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and prosecuted by Assistant U.S. Attorney Jim Noble.

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

Clifford Murray pleaded guilty on Nov. 6, 2013, to possession with intent to distribute approximately 11.6 grams of crack cocaine and was sentenced to 60 months in federal prison today by U.S. District Judge Michael H. Schneider.  Murray was also ordered to pay a $20,000 judgment and submit to forfeiture of seized firearms and cash.

According to information presented in court, on Mar. 14, 2013, Murray was found at a residence on South Jackson Street in Palestine, Texas, in possession of crack cocaine, which he intended to distribute to others.  Murray also admitted to possessing three pistols, a pistol-grip shotgun, ammunition and $8,907 in cash, all in connection with his drug trafficking activities.  

This case was investigated by the Palestine Police Department, the Anderson County District Attorney’s Office, the U.S. Drug Enforcement Administration, and the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives and prosecuted by Assistant U.S. Attorney Jim Noble.

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BEAUMONT, Texas – A 19-year-old Beaumont man has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

                Emonte Jackson pleaded guilty to carjacking and brandishing a firearm during a crime of violence today before U.S. District Judge Ron Clark. 

According to information presented in court, on Mar. 18, 2013, law enforcement officers spotted a vehicle which had been reported stolen in an aggravated robbery on Mar. 16, 2013.  The driver, later identified as Emonte Jackson, evaded the officers in his vehicle during a high speed chase through a residential area of Beaumont, Texas.  After striking two unattended vehicles, Jackson fled the scene and was apprehended underneath a house.

The vehicle Jackson was driving was identified as a 1996 Toyota Camry.  This vehicle had been reported stolen on Mar. 16, 2013.  The driver of the vehicle on Mar. 16, 2013 advised officers that she picked up Jackson, whom she had previously met, at a location in Beaumont, and agreed to  pick up Jackson’s “brother”, later identified as Dwight Elam at a different location in Beaumont.  Jackson had the driver drive around for approximately 45 minutes before having the driver drive them back to the location where Elam was picked up. At that location, Jackson attempted to take the car keys from the ignition and began struggling with and choking the driver.  Jackson then pulled out a small, silver, semi-automatic pistol and threatened to shoot the driver if she did not relinquish her keys to him.  Jackson then retrieved the car keys from the driver and threatened to kick her in the face if she would not leave the vehicle.  During this time, Elam was demanding the cell phones from the driver and her friend who was in the vehicle with her.  The friend gave her cell phone to Elam and left the scene.  Jackson sped off in the Toyota Camry. 

A federal grand jury indicted Jackson on Oct. 2, 2013.  Jackson faces up to 15 years in federal prison for the carjacking offense and another seven years for the firearms violation.  A sentencing date has not been set.
This case is being prosecuted as part of the Project Safe Neighborhoods Initiative. Project Safe Neighborhoods is aimed at reducing gun and gang violence, deterring illegal possession of guns, ammunition and body armor, and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state and local law enforcement agencies.
This case is being investigated by the Beaumont Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.  This case is being prosecuted by Assistant U.S. Attorney Michelle Englade.

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BEAUMONT, Texas – A 49-year-old Kennard, Texas, hunting and fishing guide has been sentenced for transporting an alligator that he knew had been shot in violation of state and federal wildlife laws, announced U.S. Attorney John M. Bales today.

Steve Barclay pleaded guilty on Aug. 13, 2013, to the felony offense of transporting wildlife taken in violation of federal law and was sentenced to three years’ probation and ordered to pay a $5,000 fine today by U.S. District Judge Ron Clark.

According to information presented in court, Barclay admitted that on May 8th, 16th, and 20th of 2008 he witnessed John A. McCall, a client for whom he was providing guide services, shoot and kill a total of three alligators even though Barclay knew that Texas law limits hunters to one alligator per hunter per season.  Barclay admitted that he transported the alligator killed on May 20, 2008 in Leon County to Sportsman’s Memory taxidermy shop in Grapeland, Texas.

            The Endangered Species Act prohibits the taking of any threatened species of fish or wildlife in violation of any federal or state regulation pertaining to such species. Alligators are listed as a threatened species pursuant to the Endangered Species Act.  The Lacy Act prohibits the transport, receipt, or acquisition of any wildlife taken, possessed, or transported in violation of any law, treaty, or regulation of the United States.    

“Our State partner was essential to the success of this case, and that cooperation remains critical to disrupting wildlife taken in violation of Federal Law,” said Special Agent in Charge of the U.S. Fish and Wildlife Service Southwest Region Nicholas E. Chavez.  "With our combined efforts, we protect our threatened/endangered listed species, and other wildlife from being exploited in our Nation."

This case was investigated by the U.S. Fish and Wildlife Service, Office of Law Enforcement, Houston, and the Texas Parks and Wildlife Department, Criminal Investigations Division, and prosecuted by Assistant U.S. Attorneys Jim Noble and Joe Batte.

           The mission of the U.S. Fish and Wildlife Service is working with others to conserve, protect, and enhance fish, wildlife, plants, and their habitats for the continuing benefit of the American people. It is both a leader and trusted partner in fish and wildlife conservation, known for its scientific excellence, stewardship of lands and natural resources, dedicated professionals, and commitment to public service. For more information on its work and the people who make it happen, visit www.fws.gov . Connect with its Facebook page at www.facebook.com/usfws , follow its tweets at www.twitter.com/usfwshq , watch its YouTube Channel at http://www.youtube.com/user/usfws and download photos from its Flickr page at http://www.flickr.com/photos/usfwshq .

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TYLER, Texas – A 38-year-old Tyler man has been sentenced to 45 years in federal prison for child exploitation violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
 
Mark Rushton Lawless pleaded guilty on Sep. 5, 2013 to possession of child pornography, transportation of a child to engage in sexual activity, production of child pornography, and aggravated sexual abuse of a child.  Lawless was sentenced to 45 years in federal prison today by U.S. District Judge Michael Schneider.

According to information presented in court, on Feb. 12, 2013, Lawless was found in possession of child pornography, specifically material involving a child younger than 12 years old engaged in sexually explicit conduct.  Lawless admitted that on Dec. 28, 2012, he transported a minor across state lines for the purpose of engaging in sexual activity and sexually abusing a child younger than 12 years of age.  Lawless also admitted that on Jan. 2, 2013, he enticed or coerced a minor to engage in sexually explicit conduct for the purpose of creating child pornography.  Lawless was indicted on Feb. 27, 2013 and charged with child pornography violations.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

                This case was investigated by the U.S. Postal Inspection Service, U.S. Secret Service, the Texas Department of Public Safety and the Tyler Police Department.  This case was prosecuted by Assistant U.S. Attorneys Gregg Marchessault and Mandy Griffith and Michael Grant of the Department of Justice’s Child Exploitation and Obscenity Section.

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TYLER, Texas – A 42-year-old Farmersville, Texas man has been sentenced to federal prison for firearms violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today. 

Craig Marcus Cooper pleaded guilty on Sep. 11, 2013, to being a felon in possession of a firearm and was sentenced to 18 months in federal prison today by U.S. District Judge Michael H. Schneider.

According to information presented in court, on Jan. 13, 2012, Cooper and a co-defendant, Colten David Barrow, traveled together to the Dukes Truck Stop on Highway 64 in Van Zandt County, Texas to meet an individual interested in purchasing a fully-automatic machinegun and silencer for $10,000.  The prospective buyer was an undercover federal agent and Cooper and Barrow were arrested at the scene.  Further investigation revealed Cooper was a convicted felon having been previously been found guilty of criminal mischief in Collin County, Texas in 2011.  The investigation also revealed the machinegun had been reported stolen about 10 years ago.  Cooper was indicted on Mar. 27, 2013 and charged with federal firearms violations. 
This case is being prosecuted as part of the Project Safe Neighborhoods Initiative. Project Safe Neighborhoods is aimed at reducing gun and gang violence, deterring illegal possession of guns, ammunition and body armor, and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state and local law enforcement agencies.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and prosecuted by Assistant U.S. Attorney Jim Noble.

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TYLER, Texas – A 46-year-old Grapeland, Texas man has pleaded guilty to child exploitation violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
 
Robbie Newby pleaded guilty to sexual exploitation of a child on Jan. 9, 2014, before U.S. Magistrate Judge John D. Love.

According to information presented in court, on March 14, 2012, Newby coerced or persuaded a child under the age of 16 to engage in sexually explicit conduct for the purpose of creating child pornography.  A federal grand jury returned an indictment on April 17, 2013, charging Newby 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.
Newby 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 Homeland Security Investigations and the Texas Department of Public Safety – Criminal Investigations Division and prosecuted by Assistant U.S. Attorney Nathaniel C. Kummerfeld. 

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TYLER, Texas – A 49-year-old Palestine, Texas man has pleaded guilty to child pornography violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
 
Alvin Westley pleaded guilty to possession of child pornography on Jan. 9, 2014, before U.S. Magistrate Judge John D. Love.

According to information presented in court, on Jan. 26, 2011, Westley was found in possession of child pornography.  During the investigation, it was revealed that Westley is a registered sex offender having been previously convicted of three counts of indecency with a child.  A federal grand jury returned an indictment on Oct. 23, 2013, charging Westley was child pornography violations. 
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Westley faces a minimum of 10 years and up to 20 years in federal prison.  A sentencing date has not been set.
This case is being investigated by the Homeland Security Investigations and the Texas Department of Public Safety – Criminal Investigations division and prosecuted by Assistant U.S. Attorney Nathaniel C. Kummerfeld. 

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BEAUMONT, Texas – The Director of Finance and Comptroller of the Beaumont Independent School District (BISD) have been indicted on federal charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

Devin Wayne McCraney, 35, and Sharika Baksh Allison, 43, both of Beaumont, were named in a 19-count indictment returned by a federal grand jury today charging them with conspiracy and 18 counts of fraud.

According to the indictment, beginning in 2010, McCraney, Director of Finance for BISD, and Allison, Comptroller for BISD, are alleged to have devised schemes in which they embezzled $4,041,705.27 from BISD by means of 18 separate wire transfers to bank accounts under their personal control.

“FDR famously said, ‘The school is the last expenditure upon which America should be willing to economize’,” said U.S. Attorney Bales.  “And the truth is that the citizens of Beaumont have heeded that wise advice and have spent lavishly on their public schools for the sake of the city’s children.  But as this indictment illustrates, there are individuals at BISD who have corruptly embezzled from that generous provision by stealing over $4 million dollars that was intended to underwrite excellent schools in Beaumont.  The Grand Jury has alleged that Devin McCraney and Sharika Allison have been caught red-handed and if convicted, they will face justice.  In the same way, federal agents and prosecutors will remain vigilant to detect, investigate and hold accountable other so-called public servants who are abusing the public trust.”

"The FBI recognizes that fighting public corruption is vital to preserving our democracy," said SAC Stephen L. Morris.  "Our public officials have and always will be held to a higher standard to maintain their positions of trust. These indictments today signify a violation of the public trust given to Devin McCraney and Sharika Allison."

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

“Today’s indictment alleges that these two public officials knowingly and willfully abused their positions of trust to steal funds from the very ones they promised to serve – the children of the Beaumont Independent School District.  That is completely unacceptable,” said Neil Sanchez, Special Agent in Charge of the U.S. Department of Education Office of Inspector General’s Southwest Regional Office.  “OIG Special Agents will continue to aggressively pursue those who seek to enrich themselves at the expense of our nation’s students.  America’s students, their families, and taxpayers deserve nothing less.”

The defendants each face up to 10 years in federal prison.

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

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 34-year-old Vidor, Texas man was sentenced today for his role in a March 2011 murder committed in as part of the SWS criminal enterprise in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

Tanner Lynn Bourque, a/k/a “Two Shoes,” a/k/a “Hitman” pleaded guilty on July 15, 2013, to murder in aid of racketeering and was sentenced to life in federal prison today by U.S. District Judge Marcia Crone. 

According to information presented in court, Bourque ordered Kenny Don Stanley, 32, to shoot and kill James Lee Sedtal, a/k/a “Lil Bit,” on Mar. 14, 2011.  Bourque, Kristopher Leigh Guidry, a/k/a “Hollywood”, 29, and Vicki Stark-Fitts, 49, assisted in the murder, which took place in Liberty County, Texas, at Stark-Fitts’s residence.  Bourque, Guidry, Stanley, and Sedtal were members of the SWS.  The defendants murdered Sedtal on behalf of SWS, after Sedtal assaulted an Aryan Brotherhood of Texas (ABT) associate.  ABT was poised to retaliate against SWS, and Bourque, Guidry, and Stanley sought to maintain and increase their position within SWS by murdering Sedtal. 

According to court documents, the SWS is a race-based organization operating inside and outside of jails and prisons in Texas and elsewhere.  SWS was founded during the 1990s by inmates within the Texas Department of Criminal Justice. SWS is also known as “Solid Wood Soldiers” and “Separate White State.” Although the founders established SWS for protection of white inmates and advancement of white supremacy and white separatism, SWS expanded its objectives to include illegal activities for profit, including trafficking methamphetamine and firearms.  SWS protects its power, territory, and profits through intimidation and violence, including assaults, robbery, and murder. 

From September 2010 to January 2011, SWS members manufactured “shake and bake” methamphetamine for distribution in the Orange County area of Texas.  In February 2011, Bourque, Guidry and other SWS members became closely associated with Stark-Fitts, who supplied them with crystal methamphetamine and firearms. Crystal methamphetamine is a purer form of methamphetamine.  According to information presented in court, the defendants murdered Sedtal in connection with the methamphetamine conspiracy.     

  Stanley, Guidry and Stark-Fitts pleaded guilty this summer for their respective roles in the murder, and Judge Crone sentenced Stanley and Guidry to life in prison in October 2013.  Stark-Fitts is awaiting sentencing and faces from 360 months to life in prison.
This case is being prosecuted as part of the Project Safe Neighborhood’s Time Machine Initiative.  Time Machine is aimed at reducing gun and gang violence, deterring illegal possession of guns, ammunition and body armor, and improving the safety of residents in the Eastern District of Texas.  Participants in the initiative include community members and organizations as well as federal, state and local law enforcement agencies.
The case is being investigated by the ATF, FBI, U.S. Marshals Service, U.S. Secret Service, U.S. Bureau of Prisons, DEA, Texas Rangers, Department of Public Safety CID, Texas Department of Criminal Justice OIG, Orange County Sheriff’s Office, Hardin County Sheriff’s Office, Jasper County Sheriff’s Office, Tyler County Sheriff’s Office, Jefferson County Sheriff’s Office, and Beaumont Police Department, and is being prosecuted by Assistant U.S. Attorney John B. Ross. 

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BEAUMONT, Texas – A 28-year-old Columbus, Ohio man has been found guilty of federal violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

Mohamed Laye Dioubate, a naturalized citizen from Guinea, was found guilty by a jury of possessing 15 or more unauthorized access devices today following a three-day trial before U.S. District Judge Marcia Crone. 

 “This holiday season, I encourage everyone to be protective of their credit cards and their personal identifying information,” said U.S. Attorney Bales.  “Grinches, like identity thieves, are unfortunately common this time of the year.” 

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.  On Apr. 17, 2013, Dioubate was indicted by a federal grand jury in the Eastern District of Texas and charged with federal violations. 

Dioubate faces up to 10 years in federal prison.  A sentencing date has not been set. 

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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SHERMAN, Texas - A Tax Preparer has been sentenced to federal prison for tax violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.   

Wellington Mandhlazi pleaded guilty on May 16, 2013 to aiding and assisting in the preparation of fraudulent tax returns and was sentenced to 21 months in federal prison on Dec. 16, 2013 by U.S. District Judge Ron Clark.  Mandhlazi was also ordered to pay restitution in the amount of $147,851.00. 

According to the court documents, in 2009, Mandhlazi operated an income tax preparation business.  Mandhlazi admitted that he assisted in the preparation of false federal income tax returns and included false items for educational expenses and education tax credits.  Mandhlazi also admitted that his false statements were made for the purpose of defrauding the Internal Revenue Service. 

The estimated tax loss related to the false federal income tax returns prepared as a result of Mandhlazi’s fraudulent conduct, on behalf of himself and other taxpayers, was $147,851.00.  Mandhlazi must report on or before Feb. 4, 2014, to begin serving his prison sentence. 

This case was investigated by the IRS Criminal Investigation and prosecuted by Assistant U.S. Attorney Andy Williams. 

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 SHERMAN, Texas – Six North Texas men have pleaded guilty in connection with a heroin trafficking conspiracy in the Eastern District of Texas, announced U.S. Attorney John M. Bales today. 
             
Julio Cruz, 23, of Carrollton, Texas, pleaded guilty to conspiracy to distribute and possession with intent to distribute heroin on Dec. 10, 2013, before U.S. District Judge Marcia Crone.

Co-defendants, Tyrese Jerrell Shelton, 27, of Carrollton; Cesar Alexander Avelar-Gomez, 20, of Dallas; Jose Eladio Molina, 27, of Carrollton; and Taylor Evan Anderson, 22, of Carrollton, each pleaded guilty to the same charges in the previous two months.  Clayton Teasdale, 24, of Carrollton, pleaded guilty to using a communication device to facilitate a drug trafficking crime.

According to the Second Superseding Indictment, the distribution of heroin in this case was linked to heroin overdoses, including the death of a Carrollton resident.

A federal grand jury returned an indictment on Dec. 12, 2012, charging the defendants with federal drug trafficking violations.

"Members of the law enforcement community, to include the judicial system, are all too aware of the dangers and impact that illegal drug trafficking and use has on society,” said Chief Rex Redden of the Carrollton Police Department.  “The results are always negative; so when we're able to work with our counterparts to bring individuals such as this to justice we know that we may be saving lives and lessening the harmful effects on our community. I want to congratulate everyone involved and thank those that came forward to assist and for their courage to do the right thing. We certainly feel for those that have lost loved ones and will continue to work hard to protect society from the harmful effects of illegal narcotics." 

The Drug Enforcement Administration, along with our state and local partners, is committed to targeting and dismantling drug trafficking organizations determined to spread their filth throughout our communities said DEA’s Special Agent in Charge Daniel Salter.  “Heroin abuse is unfortunately escalating --- forcing addiction, pain and devastation on its users.  Today is a victory and I applaud the efforts of the special agents and officers who worked relentlessly to shut down this drug trafficking organization and to keep our neighborhoods free of the poison being spread by these criminals.”

The defendants each face a minimum of 10 years and up to Life in federal prison at sentencing.  Sentencing dates have not been set. 

This case is being investigated by the U.S. Drug Enforcement Administration, the Carrollton Police Department, the Coppell Police Department, the San Antonio Police Department, the Dallas County Sheriff’s Office, the Kaufman County Sheriff’s Office, and the Ellis County Sheriff’s Office.  This case is being prosecuted by Assistant U.S. Attorney Heather Rattan.

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 BEAUMONT, Texas – A former Beaumont physician and office manager have been charged with health care fraud violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

John Q. A. Webb, Jr., 74, of Houston, and Kari Mannino, 30, of Woodville, were indicted by a federal grand jury on Dec. 5, 2013, and charged in a 43-count indictment with health care fraud, conspiracy to commit health care fraud, distribution of controlled substances, and conspiracy to distribute controlled substances.

According to the indictment, Webb and Mannino are alleged to have executed various schemes in order to defraud Medicare, Medicaid , Blue Cross Blue Shield and Aetna.  Since 2007, Webb owned operated and managed Beaumont Medical Clinic on Eastex Freeway in Beaumont.  From about January 2008 through December 2011, Webb and his office manager, Mannino, are alleged to have instructed unlicensed individuals to treat patients and then bill health care providers as if Webb had personally provided the services.  Webb and Mannino are also alleged to have conspired with each other to distribute Suboxone, a Schedule III controlled substance, by prescribing the drug not in the usual course of professional practice.  To execute the scheme, Webb would allow unlicensed staff to prescribe controlled substances to patients when he was not on the premises and allowed Mannino to distribute the controlled substances directly to patients.  It is further alleged that Webb and Mannino failed to conduct adequate or any physical examinations of the individuals in order to diagnose and treat patients.  The indictment alleges that Webb and Mannino caused health care benefit programs to be billed in excess of $3,623,749.84, and Webb was paid in excess of $1,106,862.00.   

Webb appeared in federal court in Houston on Dec. 11, 2013 for an initial appearance.  Mannino appeared in Beaumont on Dec. 11, 2013, for an initial appearance.  Both were released on bond.

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

This case is being investigated by the Texas Attorney General’s Medicaid Fraud Control Unit, Department of Health and Human Services, Federal Bureau of Investigation, and the U.S. Drug Enforcement Administration.  This case is being prosecuted by Special Assistant U.S. Attorney Catherine Levacy Cockrell.

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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 TEXARKANA, Texas – U.S. Attorney John M. Bales and Bowie County District Attorney Jerry Rochelle announced today the culmination of “Operation M-Pact,” a two-year joint federal and state investigation into individuals responsible for mid- and high-level trafficking and distribution of methamphetamine through the Eastern District of Texas as well as to Arkansas, Louisiana, and Tennessee.  The investigated individuals were responsible for trafficking and distributing more than 250 kilograms of methamphetamine through the I-30 corridor, to Northeast Texas, Southwest Arkansas, and beyond.  Those being prosecuted include:

Calvin Avery, age 41, Texarkana, TX
Darrin Betts, age 34, Texarkana, TX
Robert Clark, age 29, Diaz, AR
Marcus Floyd, age 25, Texarkana, TX
Rodrick Grimes, age 40, Coppell, TX
Keith Harris, age 44, Texarkana, TX
Danny Hill, age 33, Texarkana, TX
Abdul Hopkins, age 40, Texarkana, TX
Sonya Hopkins, age 37, Texarkana, TX
Jamaine Hunt, age 40, Texarkana, TX
Johnny Hunt, age 40, Dallas, TX
William Irby, age 43, Wynne, AR
Ashton Jackson, age 24, Texarkana, TX
Michael Jackson, age 38, Texarkana, TX
Keith Jones, age 32, Texarkana, TX
Lloyd Jones, age 29, Texarkana, TX
Santigie (Fred) Kabia, age 32, Texarkana, TX
Anthony Bryan Krebs, age 34, Texarkana, TX
Jonathan Lee, age 32, St. Louis, MO
Gary Lindsay, age 32, Texarkana, TX
Jason Martin, age 36, Texarkana, TX
Kenneth McCoy, age 43, Dallas, TX
Aaron Meeks, age 35, Texarkana, TX
Everett Moore, age 35, Texarkana, TX
Patrick O’Guinn, age 40, Ashdown, AR
Kelvin Ragland, age 34, Texarkana, TX
Robert Sanders, age 36, Texarkana, TX
Cornell Thomas, age 42, Texarkana, TX
Roderick Thurman, age 34, Texarkana, TX
Kenneth Walker, age 28, Texarkana, TX
Jeremy Wilson, age 26, Texarkana, TX
Clarence Willis, age 41, Texarkana, TX

                This case is the result of an extensive two year joint investigation by the Federal Bureau of Investigation, Texas Department of Public Safety Criminal Investigation Division, Bi-State Narcotics Task Force, Texarkana, Texas Police Department, and IRS Criminal Investigation, with assistance from the U.S. Marshals Service, U.S. Drug Enforcement Administration, the police departments of Texarkana, Arkansas; Mt. Pleasant, Texas; Nacogdoches, Texas; Ashdown, Arkansas; the Miller and Little River County (Arkansas) and Bowie County (Texas) Sheriff’s Offices; the U.S. Attorney’s Office for the Western District of Arkansas; the District Attorney’s Offices of Bowie County, Texas, Anderson County, Texas, and Little River County, Arkansas.  During the course of this operation, agents have successfully arrested approximately 50 individuals and seized approximately 23 pounds of methamphetamine, over 3 pounds of cocaine, large amounts of marijuana, more than $50,000 in U.S. currency, 31 vehicles (recovering 6 stolen vehicles), 45 firearms (recovering 3 stolen firearms), more than 10,000 rounds of ammunition, and 7 properties with an estimated value of over $400,000. 

                The investigation has led to additional arrests in the Northern District of Texas (Dallas area), including more than 16 additional defendants and the seizure of more than 2 kilograms of methamphetamine.  

“Today’s announcement signals the dismantlement of a destructive criminal enterprise,” said Federal Bureau of Investigation Special Agent in Charge Diego Rodriguez.  “The cooperation and coordination amongst local, state and federal law enforcement agencies resulted in the shared success of removing significant social and criminal threats to the community.”
These cases are being prosecuted by Assistant U.S. Attorneys Ryan Locker and Mary Ann Cozby and Bowie County District Attorney Jerry Rochelle.

The defendant Roderick Thurman is currently a fugitive from justice.  We ask that anyone with information regarding his whereabouts contact the U.S. Marshals Service in Texarkana at (903) 793-8782.

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 PLANO, Texas – A 54-year-old Plano, Texas man has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales. 
             
Kevin G. White pleaded guilty to committing mail fraud in connection with a commodity trading fraud scheme today before U.S. Magistrate Judge Don D. Bush.

According to information presented in court, White operated Revelation Forex Fund (RFF), which was a fund that conducted foreign exchange currency trading.  RFF had its offices in Plano.  In order to lure investors to purchase partnership interests in RFF, White falsely overstated the past rate of return on investment for RFF, that RFF returns had been audited, and the length of time RFF had actually been in existence.  RFF received investments totaling over $7.4 million.  White admitted to using approximately $1.8 million of investor funds for non-investment purposes.  The loss to investors was approximately $4 million. 

White 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 prosecuted by Assistant U.S. Attorney Andy Williams.

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 TEXARKANA, Texas – A 35-year-old New Boston, Texas woman has pleaded guilty to a biological weapons charge in the Eastern District of Texas, announced U.S. Attorney John M. Bales and Acting Assistant Attorney General for National Security. John Carlin. 
                 
Shannon Guess Richardson pleaded guilty to an Information charging her with possession of a toxin for use as a weapon today 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. 

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

This case is being investigated by the Federal Bureau of Investigation, the U.S. Secret Service, the U.S. Postal Inspection Service, the U.S. Marshals 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 is being 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 16 individuals have been arrested following a lengthy investigation into drug trafficking in the Eastern District of Texas.

            On Dec. 10, 2013, a combined task force of federal, state and local law enforcement agencies began arresting individuals named in a federal indictment returned by a grand jury on Nov. 20, 2013.  The indictment charges the following individuals with conspiracy to distribute methamphetamine, cocaine and marijuana in the Eastern District of Texas:

ANTONIO CORTEZ GONZALES, 34, of Tyler, MONICA HENSLEY, 35, of Longview, GUILLERMO ORTIZ-PINEDA, a/k/a "The General," 38, of Houston, JUAN GUTIERREZ MOJICA, 43, of Tyler, a/k/a "Benjamin Blanco", a/k/a "Chava", a/k/a "Chaparro", a/k/a "El4", a/k/a "Carlos Pineda", a/k/a "Oneldo Pineda", a/k/a "Eledoni Panteleon", a/k/a "Serafin GutietTez", a/k/a "Gonzalo Coria", a/k/a "Luis Tapia", a/k/a "Emilio Guerra;”
MIRIAM REYES, 41, of Houston, JUVENCIO DUQUE, 53, of Dallas, MAURICIO ORROSTIETA RODRIGUEZ, 40, of Tyler, ALEJANDRO HERNANDEZ, 46, of Irving, Texas, IVAN SANCHEZ, 21, of Tyler, ESTEBAN AVELLANEDA MUNOZ, 19, of Tyler, JONHYAYALA, 34, of Tyler, JESUS BOTELLO, 34, of Tyler, GUADALUPE CUARENTA, 48, of Tyler, SERGIO MOJICA, 30, of Tyler, LUIS GARCIA-AGUIRRE, 32, of Tyler, and
IRERI PINEDA, xx, of Tyler.

The defendants will appear today in federal court for initial appearances.  If convicted, the defendants face from 10 years to life in federal prison.

            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. 

In August 2012, the Drug Enforcement Administration (DEA) Tyler Task Force, in conjunction with multiple law enforcement agencies, initiated an OCDETF investigation into a crystal methamphetamine trafficking organization based in the East Texas area with direct ties to Mexico.  The organization also distributes cocaine and marijuana.  This 16 month investigation involved extensive surveillance and innovative investigative techniques.  Several sources of supply for crystal methamphetamine, cocaine, and marijuana were identified during the course of the investigation.  To date, law enforcement officials have seized multiple pounds of crystal methamphetamine, cocaine, and marijuana.  Officers have also seized more than $200,000 cash, multiple weapons, vehicles, and real property.

“Today’s enforcement operations are indicative of the DEA’s commitment to rid our communities of drug trafficking organizations determined to profit on the backs of addiction,” said the DEA Dallas Division’s Special Agent in Charge Daniel R. Salter.  “Citizens in East Texas can rest assured that the DEA and our law enforcement partners are determined to ensure that Tyler and its surrounding communities remain safe and a great place to live.  The success of this investigation is an outstanding example of our law enforcement community’s resolve and determination.”

The DEA Task Force in Tyler includes officers from the Gregg County Sheriff’s Office, Henderson County Sheriff’s Office, Henderson Police Department, Kilgore Police Department, Smith County Sheriff’s Office, and Upshur County Sheriff’s Office, as well as DEA Special Agents. 

Other agencies assisting in the joint investigation include the Federal Bureau of Investigation, Homeland Security Investigations, Internal Revenue Service Criminal Investigation, Department of Public Safety (DPS), Kilgore Police Department, Longview Police Department, Gregg County Sheriff’s Office, Smith County Sheriff’s Office, Tyler Police Department, and the Harris County Sheriff’s Office.  This case is being prosecuted by Assistant U.S. Attorney Mary Ann Cozby.

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 58-year-old Tyler, Texas man has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales. 
                 
Bobby Gene Loggins pleaded guilty to an Information charging him with making false statements to a bank today before U.S. Magistrate Judge John D. Love.

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 operation in about August 2010. 

Loggins faces up to 30 years in federal prison and a fine of up to $1 million.  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 Frank Coan.

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 SHERMAN, Texas – A 48-year-old Dallas man has been sentenced to federal prison for the carjacking of a witness in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

            Dietrick Lewis Johnson pleaded guilty to carjacking and tampering with a witness on Oct. 15, 2013 and was sentenced to 240 months for the carjacking violation and 125 months for the witness tampering charge today by U.S. District Judge Marcia Crone.  Johnson was ordered to serve the sentences consecutively for a total of 365 months in federal prison.

According to information presented in court, on Mar. 21, 2011, Johnson kidnapped an ex-girlfriend who had a restraining order against him for stalking her.  Johnson forced the woman into her vehicle at gunpoint and drove away with her in the car.  Once they arrived at Johnson’s apartment, he forced the woman to call the Dallas county District Attorney’s office and request the stalking charges be dropped.  Johnson was indicted by a federal grand jury on Apr. 11, 2013.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the McKinney Police Department and the Dallas Police Department and prosecuted by Assistant U.S. Attorney Tracey Batson.

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 SHERMAN, Texas - A 39-year-old Zimbabwean man living in Dallas, Texas has been sentenced to federal prison for tax violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.   

Moses Mukuka, formerly living in Pocatello, Idaho, was sentenced to 46 months in federal prison for his role in two conspiracies to file false claims for refunds with the IRS.  Mukuka was sentenced on Nov. 12, 2013, by U.S. District Judge Thad Heartfield. 

According to the court documents, Mukuka entered into one conspiracy with another individual to place flyers around the Idaho State University campus, advertising himself as an accounting student, which he was not, and offering to do income tax returns for a $10 fee. Mukuka received paperwork from students to prepare their taxes and then sent the information out-of-state to the other individual to prepare the tax returns. The tax returns were submitted to the IRS with false information, including the number of dependents, claims as head-of-household, and other fictitious entries designed to increase the refund amount. Mukuka then distributed a small portion of the actual refund to the taxpayer, representing it was the entire refund, and failed to provide copies of the returns to the taxpayers. Mukuka admitted that he was aware the tax returns were false.  As part of his sentence for this conspiracy, Mukuka was ordered to pay restitution in the amount of $1,463,116.00.

In the other conspiracy, Mukuka and his co-conspirators acquired the personal identification information of others, including their Electronic Filing Identification Numbers, and they used that information to file false tax refund claims with the Internal Revenue Service.  Mukuka and his co-conspirators received at least $1,056,681.00 in fraudulent tax refunds and intended to cause a loss of $1,700,000 as a result of these false tax refund claims. As part of his sentence for this conspiracy Mukuka must pay restitution in the amount of a $1,056,681.  Mukuka was ordered to be deported after he completes his prison term

This prosecution resulted from an investigation conducted by special agents with the IRS Criminal Investigation. The matter was prosecuted by Assistant U.S. Attorney Jack B. Haycock in Idaho before it was transferred to the Eastern District of Texas and prosecuted by Assistant U.S. Attorney Christopher Eason. 

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 BEAUMONT, Texas – A 27-year-old Tamaulipas, Mexico man has been sentenced to federal prison for credit card fraud related charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales.

Samuel Rivera Compean pleaded guilty on Apr. 16, 2013, to possession of 15 or more unauthorized access devices and was sentenced to 37 months in federal prison today by U.S. District Judge Ron Clark.  Compean was ordered to pay restitution in the amount of $58,754 to Discover Financial Services, a credit card issuer. 

According to information presented in court, on Mar. 16, 2012, Compean was stopped by a State trooper for a traffic violation in Nacogdoches, Texas.  During the traffic stop, 146 fraudulent credit cards were discovered in different names with matching false identification cards bearing Compean’s picture. The cards were secreted in various compartments in the car. Compean also had numerous electronic items purchased with the cards including I-pads, I-pods, Xboxes, and laptop computers. Compean attempted to flee on foot but was apprehended after a short foot chase. He was released later on bond by a local judge.  Compean was indicted by a federal grand jury on Feb. 6, 2013, and charged with federal credit card fraud charges.  Compean will be deported following his prison sentence.

                This case was investigated by the Texas Department of Public Safety and the Houston Police Department and prosecuted by Assistant U.S. Attorney Robert L. Rawls.

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 TYLER, Texas - A 38-year-old Longview, Texas woman has been sentenced to federal prison for tax violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.   

Racyna Antoinette Henry pleaded guilty on May 14, 2013, to aiding and assisting in the preparation of fraudulent tax returns and was sentenced to 24 months in federal prison today by U.S. District Judge Leonard Davis.  Henry was also ordered to pay restitution in the amount of $277,364. 

      According to information presented in court, in 2006, Henry began working out of her home as a tax return preparer with a company known as Preyear’s Tax and Check Cashing Services, LLC, which is based in Alabama.  Around October 2007, Henry also managed and operated a company known as Henry’s Tax Service LLC out of her home.  At some point in 2006, Henry admits that she began assisting in the preparation of false federal income tax returns.  The false items contained false dependents, false child tax credits, false child and dependent care expenses, false losses on farming activities, and false earned income tax credits.

            The estimated tax loss related to the false federal income tax returns prepared with assistance from Henry from 2006 to 2010 was between $200,000 and $400,000.  Henry must report to the U.S. Marshals Service on or before Jan. 6, 2014 to begin serving her prison sentence.

This case was investigated by the IRS Criminal Investigation and prosecuted by Assistant U.S. Attorney Alan R. Jackson.

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 BEAUMONT, Texas – A 70-year-old Beaumont orthodontist has been sentenced to federal prison for health care fraud violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today. 

Terrence Ewing Syler pleaded guilty on June 18, 2013, to health care fraud and was sentenced to 22 months in federal prison today by U.S. District Judge Thad Heartfield.  Syler was also ordered to submit to forfeiture of $829,000 and pay a $6,000 fine.

 According to the information presented in court, Syler owned and operated Syler Orthodontics in Beaumont.  From January 2007 to October 2012, Syler carried out a scheme to defraud Medicaid by submitting claims for palatal expanders which were never provided to his patients.  As a result of the scheme, Syler received $829,333 to which he was not entitled.  As part of his plea agreement, Syler has agreed to forfeiture of several bank accounts totaling just over $829,000.  

The Texas Medical Assistance Program (Medicaid) is a health care benefit program, jointly funded by the State of Texas and the federal government, and helps pay for reasonable and necessary medical procedures and services provided to individuals who are deemed eligible under state low-income programs.

This case was investigated by Federal Bureau of Investigation, the U.S. Department of Health and Human Services – Office of the Inspector General (HHS-OIG) and the Texas Office of the Attorney General – Medicaid Fraud Control Unit (OAG-MFCU).  Assistant U.S. Attorney Christopher T. Tortorice prosecuted this case.

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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 TYLER, Texas – A 34-year-old Tyler, Texas man has been sentenced for stealing government property in the Eastern District of Texas, announced U.S. Attorney John M. Bales.

Raymond Kyle Welsh pleaded guilty on Jan. 3, 2013, to theft of government property and was sentenced to three years of probation today by U.S. District Judge Leonard E. Davis.  Welsh was also ordered to pay restitution in the amount of $222,162.14 and ordered to submit to the forfeiture of $26,588. 

According to information presented in court, from January 2003 to September 2010, Welsh concealed and failed to disclose his financial resources and income in order to receive Social Security and Medicaid benefits.  Welsh stole approximately $26,588.00 from the Social Security Administration in the form of Social Security Supplemental Income (SSI) payments and $195,574.14 from the Department of Health and Human Services in the form of Medicaid benefits.  Welsh admitted that he knew he was not entitled to the benefits and that they belonged to the United States government. 

                This case was investigated by the Social Security Administration and prosecuted by Assistant U.S. Attorney Mary Ann Cozby.

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 TYLER, Texas – A 45-year-old Flint, Texas, man has been sentenced to federal prison for child pornography violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
 
Barry Porter Griffith pleaded guilty today to possession of child pornography and was then sentenced to 42 months in federal prison by U.S. District Judge Leonard Davis.

                According to information presented in court, on Oct. 31, 2012, Texas Department of Criminal Justice network engineers detected significant Internet bandwidth being used by a state-owned computer to view pornography online.  The engineers identified the user as Griffith, a state parole officer.  They remotely viewed the web-sites that Griffith was accessing and determined that he was viewing child pornography from his office.  When approached by investigators from the Office of the Inspector General for the Texas Department of Criminal Justice, Griffith admitted to the conduct.  He later met investigators at his residence, and surrendered two personal computers.  Forensic examination of the computers confirmed that they contained images depicting child pornography.

                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 U.S. Secret Service, the Office of the Inspector General for the Texas Department of Criminal Justice, the Texas Department of Public Safety, and the Longview Police Department.  The case was prosecuted by Assistant U.S. Attorney Frank Coan.

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  PLANO, Texas – Infosys Corporation, an Indian company involved in consulting, technology, and outsourcing, has agreed to a civil settlement of allegations of systemic visa fraud and abuse of immigration processes by paying a record settlement amount and agreeing to enhanced corporate compliance measures, announced U.S. Attorney John M. Bales.  The $34 million payment made by Infosys as a result of these allegations represents the largest payment ever levied in an immigration case.

        Infosys is located in thirty countries including the United States, and in 17 cities in the United States, including a location in Plano, Texas.  The Plano location is responsible for handling the immigration practices and procedures for the United States operations of Infosys.  Infosys brings foreign nationals into the United States in order to perform work and fulfill contracts with its customers under two visa classification programs relevant to this matter, H-1B and B-1.

        According to court documents, the government alleged instances of Infosys circumventing the requirements, limitations, and governmental oversight of the H-1B visa program by knowingly and unlawfully using B-1 visa holders to perform skilled labor in order to fill positions in the United States for employment that would otherwise be performed by United States citizens or require legitimate H-1B visa holders.  The government also alleges that Infosys did so in order to increase profits, minimize costs of securing visas, increase flexibility of employee movement, obtain an unfair advantage over competitors, and avoid tax liabilities.  Specific allegations include the following:

·       Infosys used B-1 visa holders to perform jobs that involved skilled labor that were instead required to be performed by United States citizens or required legitimate H-1B visa holders.

·       Infosys submitted “invitation letters” to U.S. Consular Officials that contained false statements regarding the true purpose of a B-1 visa holder’s travel in order to deceive U.S. Consular Officials and secure entry of the visa holder into the United States.  These letters often stated that the purpose of travel was for “meetings” or “discussions” when the true purpose was to engage in activities not authorized under a B-1 visa.

·       Infosys directed B-1 visa holders to deceive U.S. Consular Officials, including specific instructions to avoid certain terminology, to secure entry of the visa holder into the United States.  Infosys created a “Do’s and Don’ts” memorandum that it provided to foreign nationals entering the United States on a B-1 visa that included the following directions: “Do not mention activities like implementation, design & testing, consulting, etc., which sound like work”; “Also do not use words like, work, activity, etc., in the invitation letter”; and “Please do not mention anything about contract rates.”

·       Infosys told its foreign nationals to inform U.S. Consular Officials that their destination in the United States was the same as that provided in the Labor Condition Application, notwithstanding the fact that Infosys knew that the destinations had changed.

·        Infosys wrote and revised contracts with clients in order to conceal the fact that Infosys was providing B-1 visa holders to perform jobs that involved skilled or unskilled labor that were otherwise required to be performed by United States citizens or required legitimate H-1B visa holders.

·       Infosys concealed the fact that B-1 visa holders were performing jobs that involved skilled or unskilled labor that were otherwise required to be performed by United States citizens or required legitimate H-1B visa holders by billing clients for the use of off-shore resources when, in fact, work was being performed by B-1 visa holders in the United States.

·       Infosys failed to maintain I-9 records for many of its foreign nationals in the United States in 2010 and 2011 as required by law, including a widespread failure to update and re-verify the employment authorization status of a large percentage of its foreign national employees.

        The settlement agreement requires Infosys to make a payment to the United States of $34 million.  The agreement was largely predicated on Infosys’s cooperation with the United States during the investigation and on compliance measures taken by Infosys in the areas of B-1 and H-1B visas and I-9 documentation, both prior to and during the course of the investigation.  The settlement agreement requires additional auditing for I-9 forms; a reporting requirement for B-1 usage; an agreement to continue to use only detailed invitation letters, and the continued use of corporate disciplinary processes for employees that violate the immigration laws of the United States.

        “We will not tolerate actions that mislead the United States and circumvent lawful immigration processes, whether undertaken by a single individual or one of the largest corporations in the world,” said U.S. Attorney Bales.  “The H-1B and B-1 visa programs are designed and intended to protect the American worker; and we will vigorously enforce the requirements of those programs.”

David M. Marwell, Special Agent in Charge of Homeland Security Investigations in Dallas, concurred:  “This settlement against Infosys is the largest immigration fine on record.  The investigation indicated that Infosys manipulated the visa process and circumvented the requirements, limitations, and governmental oversight of the visa programs.  The investigation also showed that more than 80 percent of Infosys’s I-9 forms for 2010 and 2011 contained substantive violations.  Ultimately, these actions by Infosys cost American jobs and simultaneously financially hurt companies that sought to follow the laws of this nation.  Companies that misuse the visa process can expect to be scrutinized and held accountable.”

        The investigation and settlement also earned the praise of George M. Nutwell III, Special Agent-in-Charge of the Houston Field Office, Diplomatic Security Service, U.S. Department of State, who said that “the Infosys investigation illustrates the unique role that DSS plays in investigating complex visa fraud cases that reach far beyond U.S. borders.  DSS collaborates with our law enforcement partners and is committed to investigating and bringing to justice those who violate the law.”

        This case was investigated and the settlement negotiated by Assistant U.S. Attorneys Shamoil T. Shipchandler, Alan R. Jackson, and J. Kevin McClendon, and special agents and attorneys from the Department of State, Diplomatic Security Service, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and U.S. Citizenship and Immigration Services.

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 TYLER, Texas – A 63-year-old Tyler, Texas eco-tourism guide has been sentenced for smuggling live snakes into the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

William Lamar pleaded guilty on June 18, 2013, to importing wildlife taken in violation of foreign law and was sentenced to three years of probation today by U.S. District Judge Michael H. Schneider. 

                According to information presented in court, on Aug. 29, 2012, Lamar imported seven live snakes that he had purchased at a market in Lima, Peru.  Lamar smuggled the snakes in his jacket on flights from Lima to Miami, Florida and then to Dallas/Ft. Worth International Airport.  The next day, after TSA agents refused to let him board a commuter plane to Tyler with the snakes, Lamar traveled aboard a ground transport shuttle from DFW to his home in Tyler.  Game Wardens went to Lamar’s residence and seized the snakes.

                Peruvian law prohibits the exportation of wild live animals coming from the forest or jungle region unless the exporter has a properly issued ministerial order authorizing the export for either scientific investigation or for cultural diffusion.  Lamar admitted that he knew that Peruvian law prohibited the unauthorized exportation of wildlife in a jacket without proper authorization.

                This case was investigated by the U.S. Fish and Wildlife Service, the Texas Parks and Wildlife Service, the Transportation Security Administration, and the Dallas Fort Worth International Airport Department of Public Safety.  This case was prosecuted by Assistant U.S. Attorney Jim Noble.

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  BEAUMONT, Texas – A 32-year-old Vidor, Texas man was sentenced today for his role in a March 2011 murder committed in furtherance of the SWS criminal enterprise in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

Kenny Don Stanley pleaded guilty on June 25, 2013, to murder in aid of racketeering and was  sentenced to life in federal prison today by U.S. District Judge Marcia Crone. 

According to information presented in court, on Mar. 14, 2011, Stanley, along with Tanner Lynn Bourque, a/k/a “Two Shoes,” a/k/a “Hitman” (33), Kristopher Leigh Guidry, a/k/a “Hollywood” (28), and Vicki Stark-Fitts (49), used a firearm to murder James Lee Sedtal, a/k/a “Lil Bit,” in Liberty County, Texas.  The defendants murdered Sedtal on behalf of SWS, after Sedtal assaulted an Aryan Brotherhood of Texas (ABT) associate.  ABT was poised to retaliate against SWS, and Bourque, Guidry, Stanley, and Stark-Fitts sought to maintain and increase their position within SWS by murdering Sedtal. 

According to court documents, the SWS is a race-based organization operating inside and outside of jails and prisons in Texas and elsewhere.  SWS was founded during the 1990s by inmates within the Texas Department of Criminal Justice. SWS is also known as “Solid Wood Soldiers” and “Separate White State.” Although the founders established SWS for protection of white inmates and advancement of white supremacy and white separatism, SWS expanded its objectives to include illegal activities for profit, including trafficking methamphetamine and firearms.  SWS protects its power, territory, and profits through intimidation and violence, including assaults, robbery, and murder. 

From September 2010 to January 2011, SWS members manufactured “shake and bake” methamphetamine for distribution in the Orange County area of Texas.  In February 2011, Bourque, Guidry and other SWS members became closely associated with Stark-Fitts, who supplied them with crystal methamphetamine and firearms. Crystal methamphetamine is a purer form of methamphetamine that is imported from Mexico.  According to information presented in court, on Mar. 14, 2011, Stanley, Bourque, Guidrey and Stark-Fitts murdered James Lee Sedtal, a/k/a Lil Bit, in connection with the methamphetamine conspiracy.

  Guidry, Bourque, and Stark-Fitts pleaded guilty this summer for their respective roles in the murder.  Judge Crone sentenced Guidry to life in prison on October 4, 2013.  Bourque and Stark-Fitts are awaiting sentencing.  Bourque faces life in prison, and Stark-Fitts faces from 360 months to life in prison.
This case is being prosecuted as part of the Project Safe Neighborhoods Time Machine Initiative. Time Machine is aimed at reducing gun and gang violence, deterring illegal possession of guns, ammunition and body armor, and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state and local law enforcement agencies.
The case is being investigated by the ATF, FBI, U.S. Marshals Service, U.S. Secret Service, U.S. Bureau of Prisons, DEA, Texas Rangers, Department of Public Safety CID, Texas Department of Criminal Justice OIG, Orange County Sheriff’s Office, Hardin County Sheriff’s Office, Jasper County Sheriff’s Office, Tyler County Sheriff’s Office, Jefferson County Sheriff’s Office, and Beaumont Police Department, and is being prosecuted by Assistant U.S. Attorney John B. Ross. 

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 BEAUMONT, Texas – A 40-year-old Jasper, Texas, man has been sentenced to federal prison for child pornography violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
 
Tracy Jay Chappell pleaded guilty on July 11, 2013 to possession of child pornography and was sentenced to 60 months in federal prison today by U.S. District Judge Marcia Crone.

According to information presented in court, on Apr. 4, 2011, Chappell was identified through his IP (Internet Protocol) address during an undercover operation targeting child pornography distribution.  The IP address had files available for any computer user connected to the internet to access using publicly available file sharing software.  A federal search warrant was later executed at Chappell’s residence on County Road 136 in Jasper.  During the search, a personal computer was seized that contained approximately 1,200 files depicting child pornography.  Chappell was indicted by a federal grand jury on Feb. 6, 2013
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 Investigation’s Immigration and Customs Enforcement and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney Randall L. Fluke. 

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  BEAUMONT, Texas – The former president of Port Arthur Chemical and Environmental Services, LLC (PACES) has been sentenced for occupational safety crimes which resulted in the death of an employee, announced John M. Bales, U.S. Attorney for the Eastern District of Texas, and Robert G. Dreher, Acting Assistant Attorney General of the Justice Department’s Environment and Natural Resources Division
Matthew Lawrence Bowman, 41, of Houston, pleaded guilty on May 9, 2013, to violating the Occupational Safety and Health Act (OSH Act) and making a false statement and was sentenced to 12 months in federal prison today by U.S. District Judge Marcia Crone.  Bowman was also ordered to pay fines in the amount of $5,000.  

Bowman admitted to not properly protecting PACES employees from exposure to hydrogen sulfide, a poisonous gas resulting in the death of truck driver Joey Sutter on Dec. 18, 2008.  In addition, Bowman admitted to directing employees to falsify transportation documents to conceal that the wastewater was coming from PACES after a disposal facility put a moratorium on all shipments from PACES after it received loads containing hydrogen sulfide. 

“The government’s prosecution of Matthew Bowman is now complete.  While Mr. Bowman is being held accountable for his criminal conduct, and that is appropriate, there is no amount of time in prison; no amount of criminal fine that can be levied that will compensate for the loss of life at PACES.  We extend our deepest condolences and well wishes to the friends and family of Mr. Sutter, who died pitilessly and needlessly because of the criminally negligent actions of Matthew Bowman,” said U.S. Attorney John M. Bales.  “The agents and prosecutors conducted an outstanding investigation and prosecution.”

“Today’s sentence is a just punishment for Bowman’s actions, which placed workers at unacceptable risk and had fatal consequences,” said Robert G. Dreher, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division.  “The Justice Department and the U.S. Attorney’s Offices will continue to work with our law enforcement partners to vigorously investigate and prosecute those who violate the laws enacted to ensure the safety of workers handling hazardous materials and to prevent the kind of tragedies that occurred in this case.”

“The sentencing today is a clear signal of the U.S. Department of Transportation’s (USDOT), and its Office of Inspector General’s (OIG) commitment to protecting the public from illegally transported hazardous materials,” said Max Smith, regional Special Agent-in-Charge, USDOT OIG.  “Working with our law enforcement and prosecutorial colleagues we will continue our vigorous efforts to prosecute to the fullest extent of the law those who would seek to disregard the Nation’s transportation laws and endanger the public.”

 “Environmental violations are serious crimes, and in a worst-case scenario, they can kill people,” said Ivan Vikin, special Agent in Charge of EPA’s criminal enforcement program in Texas.  “In this case, a senior manger’s actions led directly to the death of one of his employees.  This is why we have laws regarding the safe and legal handling of hazardous materials.  Enforcement of these laws must be consistent and uncompromising.”

"When a worker loses his or her life on the job, it has a ripple effect on their families, friends, community and the workplace. Matt Bowman and PACES knowingly violated workplace safety standards that led to Joey Sutter's death," said OSHA's Deputy Regional Administrator Eric Harbin in Dallas. "OSHA standards are in place to protect workers and employers will be held accountable when they fail to follow these standards."
According to information presented in court, Bowman was president and owner of PACES, located in Port Arthur, Texas, and CES Environmental Services (CES) located in Houston.  PACES was in operation from November 2008 to November 2010, and was in the business of producing and selling caustic materials to paper mills.  The production of caustic materials involved hydrogen sulfide, a poisonous gas.  According to the National Institute for Occupational Safety and Health, hydrogen sulfide is an acute toxic substance that is the leading cause of sudden death in the workplace.  Employers are required by OSHA to implement engineering and safety controls to prevent employees from exposure above harmful limits of hydrogen sulfide.  
Bowman was responsible for approving and directing PACES production operations, the disposal of hydrogen sulfide wastewater, and ensuring implementation of employee safety precautions. In some cases, Bowman personally handled the investigation of work-related employee injuries, directed the transportation of PACES wastewater, and determined what safety equipment could be purchased or maintained.  In the cases at issue, hazardous materials were transported illegally with false documents and without the required placards.  Most importantly, the workers were not properly protected from exposure to hazardous gases.  The exposure resulted in the deaths of two employees, Joey Sutter and Charles Sittig, who were truck drivers, at the PACES facility on Dec. 18, 2008 and Apr. 14, 2009.  Placarding is critical to ensure the safety of first responders in the event of an accident or other highway incident.  Bowman and PACES were indicted by a federal grand jury on July 18, 2012. 
This case was investigated by EPA Criminal Investigation Division; the U.S. Department of Transportation Office of Inspector General; the Texas Commission on Environmental Quality - Environmental Crimes Unit, part of the Texas Environmental Enforcement Task Force; the Texas Parks & Wildlife Department - Environmental Crimes Unit; the Houston Police Department - Major Offenders, Environmental Investigations Unit; the Travis County, Texas - District Attorney’s Office; the Harris County, Texas, District Attorney’s Office - Environmental Crimes Division; the Houston Fire Department; OSHA; the U.S. Coast Guard; the Port Arthur Police Department; and the Port Arthur Fire Department.

  The case was prosecuted by the U.S. Attorney’s Office for the Eastern District of Texas and the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division.

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 TYLER, Texas – A 37-year-old Texarkana, 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.

Sonya Lamarcus Hopkins pleaded guilty on June 6, 2013 to possession with intent to distribute and distribution of methamphetamine and was sentenced to 87 months in federal prison today by U.S. District Judge Michael H. Schneider.

            According to information presented in court, on Feb. 28, 2012, Hopkins arranged by telephone to distribute 7 grams of methamphetamine to another individual.  The transaction was carried out by another person on behalf of Hopkins in Texarkana, Texas.  Hopkins was indicted by a federal grand jury on Sep. 12, 2012 and charged with drug trafficking violations. 

            This case was investigated by the Bi-State Narcotics Task Force, Texarkana Police Department, Bowie County Sheriff’s Office, and the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Mary Ann Cozby.

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 PLANO, Texas – A 27-year-old McKinney, Texas man has been sentenced to federal prison for a firearms violation in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

            Quincy Reshawn Gilstrap pleaded guilty on Aug. 21, 2012, to charges of being a Felon in Possession of a Firearm and was sentenced to 262 months in federal prison on Oct. 24, 2013, by U.S. District Judge Richard A. Schell. 

            According to information presented in court, in December 2011, Gilstrap was arrested by Plano Police for a drug offense and evading arrest and found in possession of a firearm.   Further investigation revealed Gilstrap had been previously convicted in Collin County, Texas for evading arrest in 2004, manufacture/delivery of a controlled substance in 2008 and robbery in 2008.  Convicted felons are prohibited by federal law from owning or possessing firearms or ammunition.  A federal grand jury returned an indictment in March 2012 charging Gilstrap with being a felon in possession of a firearm. 

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Plano Police Department and prosecuted by Assistant U.S. Attorney Tracey M. Batson.

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 TYLER, Texas – A 39-year-old Tyler, Texas, man has been sentenced to federal prison for child pornography violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
 
Mark Anthony Hicks pleaded guilty on June 4, 2013 to possession of child pornography and was sentenced to 24 months in federal prison today by U.S. District Judge Leonard E. Davis.

According to information presented in court, on Feb. 28, 2013, federal and local law enforcement agents executed a search warrant at Hicks’ residence in Tyler, Texas.  A computer hard drive was seized during the search and found to contain more than 100 images and nearly 30 videos of child pornography.  Hicks was indicted by a federal grand jury on Mar. 27, 2013 and charged with child pornography violations.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by United States Secret Service and the Longview Police Department and prosecuted by Assistant U.S. Attorney L. Frank Coan, Jr. 

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 TYLER, Texas – A 43-year-old Henderson, Texas, man has been sentenced to federal prison for child pornography violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
 
James Brent Malone, a former Henderson high school English teacher, pleaded guilty on June 11, 2013 to possession of child pornography and was sentenced to 121 months in federal prison today by U.S. District Judge Leonard E. Davis.

According to information presented in court, on Jan. 10, 2013, federal and local law enforcement agents executed a search warrant at Malone’s residence in Henderson, Texas.  A laptop computer and two DVDs were seized during the search and found to contain more than 1,200 images and 40 videos of child pornography.  Some of the material included prepubescent children under the age of 12 engaged in sexually explicit conduct.  Malone was indicted by a federal grand jury on Mar. 27, 2013 and charged with child pornography violations.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

                This case was investigated by United States Secret Service and the Longview Police Department and prosecuted by Assistant U.S. Attorney Gregg A. Marchessault.