Eastern District of Texas

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TYLER, Texas – Two Mexican nationals living in Tyler, Texas, have been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today. 

                Jose Ruben Vaca-Saucedo, 26, pleaded guilty on Mar. 4, 2013, to conspiracy to possess with intent to distribute methamphetamine and was sentenced to 80 months in federal prison today by U.S. District Judge Leonard E. Davis.  The court also ordered the defendant to submit to forfeiture of $10,000.

Vaca-Saucedo’s brother, Juan Carlos Vaca, 28, pleaded guilty on Mar. 4, 2013, to distribution of methamphetamine and was sentenced to 57 months in federal prison today by Judge Davis.  Vaca was ordered to submit to forfeiture of $2,600.

According to information presented in court, from May 2010 to January 2011, the brothers conspired to possess more than 182 grams of methamphetamine which they intended to deliver to others in the Tyler, Texas area.  A federal grand jury returned an indictment on Feb. 1, 2012, charging the brothers with drug trafficking violations.

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

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

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BEAUMONT, Texas – A Center, Texas, couple now living in Elgin, Texas, has been indicted and charged with health care fraud violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today. 

Bill Harvill, 59, and his wife, Cathy Harvill, 56, were indicted by a federal grand jury on Mar. 27, 2013, and charged with theft of government money.  They were arrested on June 7, 2013, in Elgin, Texas, and appeared before U.S. Magistrate Zachary J. Hawthorn today for an initial appearance.

 According to the indictment, from January 2007 to June 2010, the Harvills submitted false and fraudulent claims to Medicare and Medicaid in order to receive more than $624,000 from the Department of Health and Human Services. 

If convicted, the Harvills each face up to10 years in federal prison.

The Medicare Program (Medicare) is a health care benefit program which provides benefits to persons who are over the age of sixty-five and some persons under the age of sixty-five who are blind or disabled.  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 is being investigated by 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 Nathaniel C. Kummerfeld is prosecuting this case.

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

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PLANO, Texas – A 34-year-old Edinburg, Texas woman has been indicted in a bank fraud scheme in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

Lacie Devine was indicted on June 13, 2013 by a federal grand jury and charged with conspiracy to commit mail fraud in connection with a mortgage fraud scheme.  If convicted, Devine faces up to 20 years in federal prison and possible restitution of $3.7 million.

According to the indictment, Devine, an escrow officer at National Escrow & Title, LLC, is alleged to have been involved in a wide-spread mortgage fraud scheme involving loan officers, recruiters, home sellers, and home buyers.  The indictment alleges that Devine conspired with others to falsify home buyers’ loan applications, to falsify real estate settlement statements, and to distribute lender funds to parties that were not disclosed on the settlement statements and were not disclosed to the lenders.  Devine’s scheme resulted in losses to mortgage lenders and to those that insured these mortgages, including The Federal Housing Administration (FHA), The Federal National Mortgage Association (Fannie Mae), and The Federal Home Loan Mortgage Corporation (Freddie Mac).

                Others who have pleaded guilty in connection with the case include Ronzell Mitchell, 36, of Edmond, OK; Christi Wyatt, 41, of Desoto, Texas; Roslyn Long, 45, of Plano; Michael Ross, 35, of Dallas; and Curtis Callier, 32, of Dallas.

                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.

                This case is being investigated by the Federal Bureau of Investigation, HUD-Office of Inspector General, Federal Housing Finance Agency-Office of Inspector General, and Texas Department of Insurance-Fraud Unit.  The case is being prosecuted by Assistant U.S. Attorneys Chris Eason and Andy Williams.

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

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PLANO, Texas - A 39-year-old Lewisville, 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.

            Scott Travis Whittington pleaded guilty on Nov. 1, 2012, to possessing unregistered firearms, smuggling goods from the United States and embezzlement of government property and was sentenced to 120 months in federal prison on June 13, 2013 by U.S. District Judge Richard Schell.

According to information presented in court, from January 2008 through September 2012, Whittington was in possession of two firearms that were not properly registered to him and stolen military property, specifically 27 M249 squad automatic weapon short barrels; 1,348 5.56 mm 30-round magazines; a fifty-caliber M2 machine gun barrel, two M2 machine gun tripods; five Small Arms Protective Insert plates; medic sets; approximately 61 cases of Meals Ready to Eat; and a destructive device.  Whittington was also found to have illegally exported a night vision weapon sight in January 2008.

Additionally, Whittington was found to be in possession of 405,331 rounds of ammunition, 26 silencers, and 158 firearms.  When questioned about the large amount of ammunition during sentencing, Whittington responded that he was, “saving up for a rainy day,” and that he thought he had, “more like 700,000 rounds of ammunition.”

Whittington was indicted by a federal grand jury on Sep. 12, 2012. 
This case was prosecuted as part of the Project Safe Neighborhoods Initiative. Project Safe Neighborhoods is aimed at reducing gun and gang violence, deterring illegal possession of guns, ammunition and body armor, and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state and local law enforcement agencies.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Postal Inspection Service, Homeland Security Investigations, and the Department of Defense.  This case was prosecuted by Assistant U.S. Attorney Tracey Batson.

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TYLER, Texas – A37-year-old Mineola, Texas woman has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

            Denise Marie Meeks pleaded guilty on Feb. 6, 2013, to possession with intent to distribute methamphetamine and possession of a firearm during a drug trafficking crime and was sentenced to 144 months in federal prison today by U.S. District Judge Michael H. Schneider.  The court also imposed a $2,000 forfeiture judgment against Meeks.

According to information presented in court, up until July 19, 2012, Meeks possessed and distributed more than 20 grams of methamphetamine in East Texas.  Meeks also admitted that she carried a firearm during, and in relation to, her drug trafficking activities.  A federal grand jury returned an indictment on Dec. 6, 2012, charging Meeks with federal violations.

This case was investigated by the Drug Enforcement Administration and the Canton Police Department and prosecuted by Assistant U.S. Attorney Bill Baldwin.

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TYLER, Texas – A32-year-old Tyler, Texas man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

            Sipriano Relles pleaded guilty on Sep. 4, 2012, to possession with intent to distribute methamphetamine and was sentenced to 140 months in federal prison today by U.S. District Judge Michael H. Schneider.  The court also imposed a $2,000 forfeiture judgment against Relles.

According to information presented in court, on Feb. 20, 2012, Relles was found in possession of approximately 66.9 grams of actual methamphetamine, which he intended to deliver to others in and around the Eastern District of Texas.  A federal grand jury returned an indictment on Apr. 11, 2012, charging Relles with federal violations.

This case was investigated by the Drug Enforcement Administration and the Tyler Police Department and prosecuted by Assistant U.S. Attorney Bill Baldwin.

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BEAUMONT, Texas – A39-year-old Silsbee, 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.

            Eric LaPaul Harper pleaded guilty on Jan. 17, 2013, to conspiracy to possess with intent to distribute methamphetamine and was sentenced to 240 months in federal prison today by U.S. District Judge Marcia Crone.

According to information presented in court, in May 2011, Harper was stopped for a traffic violation in Liberty County, Texas after he was intercepted on a wiretap ordering 6 ounces of methamphetamine.  Harper received the methamphetamine in Conroe, Texas and was stopped while returning to Silsbee.  A search during the traffic stop revealed 165.8 grams of methamphetamine.  Additional surveillance revealed Harper’s involvement in the conspiracy to be much larger as he was recorded ordering and distributing other quantities of methamphetamine on numerous telephone conversations.  A federal grand jury returned an indictment on Mar. 7, 2012, charging Harper with federal violations.

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

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

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TYLER, Texas - A 52-year-old Longview, 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.

            Kym David Pearce pleaded guilty on Feb. 8, 2013 to possession of a stolen firearm and was sentenced to 120 months in federal prison today by U.S. District Judge Michael H. Schneider. 

According to information presented in court, on May 20, 2012, a federal warrant was executed for Pearce’s arrest at his residence on Virgie Street in Longview, Texas.  As Pearce was being arrested, Gregg County CODE agents observed several firearms in the residence.  A search of the residence resulted in the discovery of eight firearms and several rounds of ammunition.  Pearce admitted that he knew at least one of the firearms in his residence was stolen.  Pearce was indicted by a federal grand jury on Oct. 3, 2012 
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 Gregg County Organized Drug Enforcement (CODE) Unit, and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorney Jim Noble.

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BEAUMONT, Texas – A 20-year-old Beaumont, Texas man has been sentenced to federal prison for carjacking in the Eastern District of Texas, announced U.S. Attorney John M. Bales. 
                 
Rogelio Arellano Torres pleaded guilty on Jan. 14, 2013, to carjacking and was sentenced to 144 months in federal prison today by U.S. District Judge Marcia Crone.

According to court documents, on June 24, 2012, law enforcement officers were dispatched to the Walden Road area of Interstate-10 south where they found a young woman visibly upset, crying and shaking.  The woman told them she had been forcibly kidnapped from the Pappadeaux’s parking lot in her own car and forced to withdraw money from her account through an ATM.   The woman was eventually forced from her vehicle and the assailant fled with her car, purse and cell phone.  She described the man, which police believed to be Torres based on previous contact with him, and she was able pick him out of a photo line-up.  Torres was indicted by a federal grand jury on July 11, 2012, and charged with carjacking.

This case was investigated by FBI and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney Joseph R. Batte.

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BEAUMONT, Texas – Two men have been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

Juan Carlos Chavez-Delgado, 30, of Houston, and Alvaro Humberto Jimenez, 57, of Mission, Texas, pleaded guilty in February 2013, to possession with intent to distribute more than 50 grams of methamphetamine and were sentenced today by U.S. District Judge Marcia Crone.  Chavez received a sentence of 95 months in federal prison and Jimenez was sentenced to 51 months.

                According to information presented in court, on Nov. 13, 2012, Chavez and Jimenez were arrested in the parking lot of Central Mall in Port Arthur, Texas, as they were completing a drug transaction involving a half kilogram of methamphetamine for $11,500.  Further investigation revealed Chavez arranged the drug transaction and paid Jimenez to drive him from Houston to Port Arthur.  The defendants were indicted by a federal grand jury on Dec. 5, 2012. 
This case was prosecuted as part of Project Safe Neighborhoods' Operation Time Machine program. Operation 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 Port Arthur, 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 U.S. Drug Enforcement Administration, the Port Arthur Police Department and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney Baylor Wortham.

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TYLER, Texas – A 57-year-old Shreveport, LA, man has pleaded guilty to federal wildlife violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

Stephen Anderson Sipes, Jr., pleaded guilty to an Information charging him with negligent transportation of wildlife today before U.S. Magistrate Judge John D. Love.

                According to information presented in court, on Jan. 14, 2010, Sipes possessed and transported 14 illegally imported live whitetail deer valued at over $350.00 each.  Sipes, who had an ownership interest in a high-fence ranch in Sanderson, Texas, transported the deer from Carthage, Missouri, against Texas law.  The fair market value of the illegally imported whitetail deer was approximately $5,650.00.   

Sipes faces up to one year in federal prison at sentencing.  Sipes has agreed to pay restitution of $14,016.49 to the Texas Parks and Wildlife Foundation.  A sentencing date has not been set. 

                This case was investigated by the Special Operations Unit of the Texas Parks and Wildlife and U.S. Fish and Wildlife Service and prosecuted by Assistant U.S. Attorney Jim Noble.

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TEXARKANA, Texas – A 35-year-old New Boston, Texas woman has been arrested for a federal violation in the Eastern District of Texas, announced U.S. Attorney John M. Bales and FBI Special Agent in Charge Diego Rodriguez. 
             
Shannon Richardson, also known as Shannon Guess and Shannon Rogers, was arrested today pursuant to a criminal complaint issued by U.S. Magistrate Judge Caroline Craven.  The complaint charges Richardson with mailing a threatening communication to the President of the United States.    

According to the arrest affidavit, on May 20, 2013, Richardson is alleged to have actually mailed three letters containing the toxin ricin.  The letters were sent to President Barack Obama and Mark Glaze in Washington, D.C., and Mayor Michael Bloomberg in New York City.  Richardson was arrested today in Mt. Pleasant, Texas, and appeared before Judge Craven this afternoon in Texarkana, Texas, for an initial appearance.

If convicted, Richardson faces up to10 years in federal prison. 

This case is being investigated by the Federal Bureau of Investigation, the U.S. Postal Inspection Service and the U.S. Secret Service.  Also providing assistance to the investigation are the New Boston, Texas Police Department, the Texas Department of Public Safety and the Shreveport, Louisiana Police Department.  This case is being prosecuted by Assistant U.S. Attorneys D. Ryan Locker, Frank Coan and Brit Featherston.

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

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PLANO, Texas - A 33-year-old Plano, Texas man has pleaded guilty to federal charges related to an incident involving an explosive device in the Eastern District of Texas, announced U.S. Attorney John M. Bales.

Anson Chi pleaded guilty to possession of an unregistered firearm or explosive device and malicious use of explosive material today before U.S. District Judge Richard A. Schell.  A superseding indictment was returned by a federal grand jury on Feb. 14, 2013, charging Chi with these violations.

According to information presented in court, on June 18, 2012, Chi possessed a destructive device or explosive that was not registered in the National Firearms Registration and Transfer Record.  The explosive device was manufactured by Chi through the combination of chemicals to create methyl nitrate.  Methyl nitrate is a highly volatile explosive capable of inflicting significant damage to persons or property.  Chi admitted to obtaining the chemical formula for methyl nitrate and documents related to explosives from the Internet.

Chi also admitted to intentionally damaging an Atmos Energy pipeline by attaching the explosive device to the pipeline and igniting it.  Chi admitted he intended for the explosion to damage the pipeline and disrupt the flow of natural gas through the pipeline. 

As a result of his plea, Chi agreed to a combined sentence of 22 years in federal prison.  A sentencing date has not been set at this time.

“Anson Chi meant to explode a natural gas pipeline that was located only a matter of yards from and ran through a Plano neighborhood,” said U.S. Attorney Bales.  “Thankfully, he failed, but not because he lacked the will and the effort.  The bomb built by Chi was extremely dangerous.  The FBI Joint Terrorism Task Force and the Plano Police Department quickly responded to the explosion and their outstanding work secured the safety of the surrounding area as well as the conviction that we announce today.  The security of our homeland is job number one for the Department of Justice and I am delighted to congratulate the agents and officers who worked very hard to secure Anson Chi’s conviction.  The citizens of Collin County can rest assured that we will remain vigilant.” 

“Today’s plea proves to those individuals who choose to disregard the laws of this country that placing our communities at risk will not be tolerated,” said Diego G. Rodriguez, Special Agent in Charge of the Dallas Division of the FBI.  “The FBI and the Joint Terrorism Task Force continuously work to see that our nation remains safe.”

This case was investigated by the FBI, the FBI-Joint Terrorism Task Force, the Plano Police Department, and the ATF and prosecuted by Assistant U.S. Attorney M. Andrew Stover.

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LUFKIN, Texas – U.S. Attorney John M. Bales announced the hiring of federal prosecutor assigned to the Lufkin office of the United States Attorney for the Eastern District of Texas. 

Assistant U.S. Attorney Lauren Gaston was administered the Oath of Office by U.S. Magistrate Judge Zack Hawthorn, today before a small crowd of friends, family, and government officials at the Ward R. Burke United States Courthouse .

                Gaston was born and raised in Nacogdoches, Texas and is a graduate of the Downtown Magnet Law High School in Wichita, Kansas, Stephen F. Austin State University and the Texas Tech School of Law.  Gaston began her career as a lawyer as an Assistant District Attorney with the Dallas County District Attorney’s Office in 2005.  As an ADA, she was assigned to the family violence courts, but also worked in the general misdemeanor courts, the intake/grand jury division and general trial courts before being moved to the Child Abuse Division.  In 2010, Gaston accepted a position with the Nacogdoches County District Attorney’s Office handling a variety of felony criminal cases, juvenile matters and appellate matters.

                Gaston joins the Lufkin office where she will prosecute a wide range of federal crimes including drug trafficking, white collar crime, immigration matters, violent crimes and child pornography.     

                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 a total of 52 federal prosecutors.

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BEAUMONT, Texas – A 42-year-old Roma, 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.

                David Bazan pleaded guilty on Feb. 12, 2013, to conspiracy to possess with intent to distribute five kilograms or more of cocaine and was sentenced to 360 months in federal prison today by U.S. District Judge Thad Heartfield.  The court also imposed a $25 million money judgment against Bazan.

According to information presented in court, on Jan. 25, 2011, law enforcement officers stopped a vehicle on IH-10 in Beaumont pursuant to undercover information indicating the vehicle would be trafficking drugs.  A search of the vehicle revealed 31.91 kilograms of cocaine.  Further investigation revealed David Bazan, leader of the Bazan drug trafficking organization, was responsible for the shipment. Bazan received thousands of kilograms of cocaine from leaders of the Gulf Cartel for the past decade and then distributed those drugs throughout the United States.  Bazan was indicted by a federal grand jury on Dec. 14, 2011.

This case was investigated by the Drug Enforcement Administration, the Internal Revenue Service, the Beaumont Police Department, and the Jefferson County Sheriff’s Office, and prosecuted by Assistant U.S. Attorney John Craft.

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TYLER, Texas – A 31-year-old Flint, Texas woman has been arrested on federal charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today. 

Mindy Ritch was charged in a complaint on May 30, 2013, with student financial aid fraud and tampering with a witness.  Ritch went before U.S. Magistrate Judge Judith K. Guthrie for an initial appearance today.

If convicted, Ritch faces up to five years in federal prison for the fraud charge and up to 20 years for tampering with a witness.

 This case is being investigated by the U.S. Department of Education –  Office of Inspector General, U.S. Secret Service, U.S. Postal Inspection Service, and the Tyler Junior College Police Department.  Assistant U.S. Attorney Nathaniel C. Kummerfeld is prosecuting this case.

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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BEAUMONT, Texas - A 40-year-old Port Arthur, Texas, man has been sentenced to federal prison for federal firearms violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

                Gary Lynn Carrington, Sr., pleaded guilty on Dec. 12, 2012, to being a felon in possession of a firearm and was sentenced to 57 months in federal prison today by U.S. District Judge Marcia Crone.

According to information presented in court, on Aug. 23, 2012, a search warrant was executed at 400 Duane Street in Port Arthur after Carrington sold crack cocaine to another individual at that residence.  During the search, officers discovered a loaded revolver, a loaded shotgun, $8,628 in cash, drug paraphernalia, and a measuring cup containing cocaine.  Carrington and two others were present during the search.  Further investigation revealed Carrington was a convicted felon, having previously been found guilty of delivery of a controlled substance in 2007 in Jefferson County and possession of a controlled substance in 1995 in Jefferson County.  As a convicted felon, Carrington is prohibited by federal law from owning or possessing firearms or ammunition.  Carrington was indicted by a federal grand jury on Sep. 20, 2012. 
This case was prosecuted as part of Project Safe Neighborhoods' Operation Time Machine program. Operation 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 Port Arthur, 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 ATF and the Jefferson County Narcotics Task Force and prosecuted by Assistant U.S. Attorney Baylor Wortham.

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BEAUMONT, Texas – A 60-year-old Spurger, Texas, woman has been sentenced to federal prison for federal violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

Sammy Gail Page pleaded guilty on Jan. 4, 2013 to interstate transportation of money taken by fraud and was sentenced to 57 months in federal prison today by U.S. District Judge Marcia Crone.  Page was also ordered to pay restitution in the amount of $1,207,440 to UBS financial Services.

                According to information presented in court, from 2005 to March 2011, Page, an investment advisor at the Beaumont office of UBS, made unauthorized withdrawals from five different client accounts on over 60 different occasions totaling $1,207,440.00.  Page was employed by UBS since 1987 and had wide discretion in the withdrawal and transfer of funds.   Page arranged the withdrawals by authorizing the issuance of wire transfers, generally payable to American Express, where she maintained a credit card account.  The investigation revealed that Page used the client funds to pay her own personal expenses, such as credit card balances.  Page was indicted by a federal grand jury on Oct. 17, 2012.

                Page was ordered to report to the U.S. Marshals Service on July 12, 2013 to be transported to the Bureau of Prisons. 

            This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Robert L. Rawls

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LUFKIN, Texas -  A Nacogdoches, Texas couple has been sentenced for federal tax violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.   

Reggie Cotton, 53, and Deborah Cotton, 57, pleaded guilty on Nov. 7, 2013 to failing to file tax returns for the calendar year 2004 and were both sentenced to five months in federal prison today by U.S. District Judge Ron Clark.  Their prison sentences will be followed by five months of home detention and restitution of $75,320 to the Internal Revenue Service.

      According to information presented in court, the Cottons were involved in running and operating D&R Services, a janitorial cleaning service.  The Cottons had received gross income for 2004 totaling $207,857 for D&R Services which they failed to file a federal income tax return for.  The Cottons knew they were required to file an income tax return because they had filed an income tax return for a separate janitorial company they had been involved with in the past. 

            Reggie Cotton was ordered to report to the U.S. Marshals Service in July 2013 to begin serving his sentence.  Deborah Cotton was ordered to report in January 2014.

This case was investigated by the IRS and prosecuted by Assistant U.S. Attorney Robert L. Rawls.

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TYLER, Texas – Two Smith County, Texas residents have been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

Clinton Daniel McCaa, 32, of Whitehouse, Texas, pleaded guilty on Jan. 9, 2013, to conspiracy to distribute and possess with intent to distribute methamphetamine and was sentenced to 80 months in federal prison today by U.S. District Judge Leonard E. Davis. 

Tara McDonald, 40, of Tyler, Texas, pleaded guilty on Jan. 9, 2013, to maintaining a place for the distribution and use of methamphetamine and was sentenced to 38 months in federal prison today by Judge Davis.

            According to information presented in court, during 2011, McCaa acquired methamphetamine from Clinton Squires of Terrell, Texas, which McCaa then distributed to multiple persons in Tyler, Texas.  During this time, McCaa lived with McDonald at her residence on Meadow Creek Drive in Tyler, Texas.  McDonald admitted that she knew McCaa was involved in the distribution and use of methamphetamine.  Furthermore, McDonald allowed McCaa to store methamphetamine and other substances at her residence.

             A federal indictment was returned on May 2, 2012, charging McDonald and McCaa with federal drug crimes. 

            This case was investigated by the Texas Department of Public Safety and prosecuted by Assistant U.S. Attorney Mary Ann Cozby.

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TYLER, Texas – A 26-year-old Longview, 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.

Jason Ray Ragan pleaded guilty on Feb. 6, 2013, to possession with intent to distribute methamphetamine and was sentenced to 50 months in federal prison today by U.S. District Judge Leonard E. Davis.

                According to information presented in court, on Aug. 2, 2012, Ragan was found in possession of approximately 8 grams of methamphetamine.  A federal indictment was returned on Sep. 12, 2012 charging Ragan and a co-defendant with federal drug crimes. 

                Co-defendant, Jason Clinton Squires, pleaded guilty on Apr. 16, 2013 to conspiracy to manufacture, distribute and possess with intent to distribute methamphetamine.  Squires is awaiting sentencing. 

                This case is being investigated by the Drug Enforcement Administration and the Texas Department of Public Safety and prosecuted by Assistant U.S. Attorney Mary Ann Cozby.

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 TYLER, Texas – A 55-year-old Longview, Texas lawyer has been sentenced to federal prison for mail fraud in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

Steven Rushing pleaded guilty on Feb. 15, 2013 to mail fraud and was sentenced to 41 months in federal prison today by U.S. District Judge Michael H. Schneider.  Rushing was also ordered to pay restitution in the amount of $929,076.29.

            According to information presented in court, beginning in January 2007, Rushing devised a scheme to defraud insurance companies and health care providers using the United States mail to execute the scheme.  Rushing’s scheme involved providing legal representation to clients injured in accidents.  Rushing negotiated settlements with civil defendants or a potential civil defendant’s insurance provider.  While negotiating final settlement amounts, Rushing would represent to his clients and the insurance providers that he would use a portion of the settlement proceeds to pay for some, or all, of his client’s outstanding medical bills.  Once Rushing received the settlement check, he would deposit it into his account and provide his client with a “Disclosure Statement” detailing the manner in which the total settlement was to be distributed.  Rushing would give a check to the client for the “client net” agreed upon amount and execute checks payable to his client’s medical providers.  However, Rushing would not actually send the medical providers their checks, instead converting that portion of the settlement proceeds for his own personal use.  For instance, Rushing admitted that on June 20, 2011, he sent a letter to Farmers Insurance representing that he would use funds from a proposed settlement to pay off “any and all hospital, health insurance, and/or Medicaid/Medicare liens” in order to secure a specific settlement in the amount of $6,836.00, when in fact, Rushing never intended to pay the liens.

            This case was investigated by the Longview Police Department and the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Jim Noble.

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TYLER, Texas –A federal grand jury returned multiple indictments today charging individuals with separate federal crimes in the Eastern District of Texas, announced U.S. Attorney John M. Bales. 

                James Ray Gilliland, 40, of Kilgore, Texas, was indicted on charges of receiving and possessing child pornography.  If convicted, he faces up to 40 years in federal prison.  According to the indictment, on Dec. 28, 2012, Gilliland knowingly received images containing child pornography.  This case is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Gregg Marchessault.

                Travis Van Ayers, 51, of Tyler, was indicted on charges of failure to register as a sex offender.  If convicted, he faces up to 10 years in federal prison.  This case is being investigated by the U.S. Marshals Service and prosecuted by Assistant U.S. Attorney Gregg Marchessault.

Carlos Gerardo Barroso Lopez, 35, was indicted for being a criminal alien present in the United States after having been previously deported.  If convicted, he faces up to 10 years in federal prison to be followed by deportation.  This case is being investigated by the HSI-ICE and prosecuted by Assistant U.S. Attorney Allen Hurst.

                Roberto Rodriguez-Astorga, 35, was indicted for being a criminal alien present in the United States after having been previously deported.  If convicted, he faces up to 20 years in federal prison followed by deportation.  This case is being investigated by the HSI-ICE and prosecuted by Assistant U.S. Attorney Allen Hurst.

                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 55-year-old Tyler, Texas, building contractor has been sentenced for federal arson related charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

                Daniel Kubisty pleaded guilty on Jan. 9, 2013, to attempted arson and was sentenced to 16 months in federal prison today by U.S. District Judge Leonard Davis.  Kubisty was also ordered to pay restitution in the amount of $8,824.00.

                According to information presented in court, on Mar. 19, 2012, Kubisty accepted $3,000 from Edward Jacobs to burn down a building located at 3322 E. Fifth Street in Tyler that was being used by the “Add-Life Recovery Center” methadone clinic.  Kubisty and Jacobs conspired to burn down the building in order to gain a competitive advantage for the “Methadone Clinic of East Texas” which was owned by Jacobs and also had an office in Tyler, Texas. On Mar. 19, 2012 Kubisty was arrested in Tyler by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and was found to have a gasoline can, with a wick saturated in gasoline protruding from its neck, in the back of his pickup. 

            After Kubisty’s arrest, Jacobs feared Kubisty would testify against him and on June 1, 2012, he arranged a meeting with a man he believed he could hire to murder Kubisty in order to prevent Kubisty’s testimony.  During the meeting, Jacobs offered to pay the hit-man $12,000.00 for Kubisty’s murder.  ATF was monitoring the meeting and arrested Jacobs at the scene.  On Dec. 18, 2012 Jacobs pleaded guilty to attempted arson and solicitation of murder for hire.  He was sentenced to 188 months in federal prison on Mar. 14, 2013, and ordered to pay over $12,000 in restitution. 

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 39-year-old Center, 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. 

Danny Len Lindsey pleaded guilty on Mar. 1, 2013, to possession with intent to manufacture methamphetamine and was sentenced to 48 months in federal prison today by U.S. District Judge Leonard E. Davis.

            According to information presented in court, from at least Aug. 14, 2011, Lindsey possessed and distributed methamphetamine in East Texas.  A federal grand jury returned an indictment on Nov. 7, 2012, charging Lindsey with drug trafficking violations.  Lindsey also admitted to possessing two firearms during his drug trafficking activities and must forfeit both firearms.    

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

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

Racyna Antoinette Henry pleaded guilty to an information charging her with aiding and assisting in the preparation of fraudulent tax returns on May 14, 2013 before U.S. Magistrate Judge Judith A. Guthrie.

      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 is between $200,000 and $400,000.  Henry faces up to 3 years in federal prison at sentencing and restitution for her crime.  A sentencing date has not been set.

This case is being investigated by the IRS and is being prosecuted by Assistant U.S. Attorney Alan R. Jackson.

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  BEAUMONT, Texas – The former president of Port Arthur Chemical and Environmental Services, LLC (PACES) has pleaded guilty in federal court to 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 Ignacia S. Moreno, Assistant Attorney General of the Justice Department’s Environment and Natural Resources Division
Matthew Lawrence Bowman, 41, of Houston, pleaded guilty to violating the Occupational Safety and Health Act (OSH Act) and making a false statement.   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 guilty plea was entered today before U.S. Magistrate Judge Zack Hawthorn. 

“In this day and age, it seems inconceivable that workers would be exposed to the level of danger that was routine at PACES,” said U.S. Attorney John M. Bales.  “Mr. Bowman’s actions as the leader of the company were more than just cavalier, they were criminal and he is being held to account.  We continue to grieve for the needless loss of life and the pain and suffering of Mr. Sutter’s family and friends.  This investigation and prosecution is the result of an excellent combined effort of the identified agencies and I am grateful for their hard work.”

“Bowman’s actions showed a preference for profit above the safety of his employees, putting them and the public in life threatening situations by not properly identifying the dangerous materials PACES was handling,” said Assistant Attorney General Moreno. “The Justice Department will continue to vigorously enforce laws enacted for the protection of human health and the environment.”

“The plea agreement reached today sends a strong signal to all who would illegally transport hazardous materials,” said Max Smith, regional Special Agent-in-Charge, U.S. Department of Transportation, Office of Inspector General.  “Working with our law enforcement and prosecutorial colleagues, we will continue our efforts to ensure safety in the transport of these materials and vigorously pursue those who violate the law.”    

 “Laws regarding the safe and legal handling of hazardous materials are in place for a reason – to save lives,” said Ivan Vikin, Special Agent in Charge of EPA’s criminal enforcement program in Texas.  “The defendant admitted that his actions directly led to the death of one of his employees.  This plea demonstrates that EPA and its partner agencies, the Texas Commission on Environmental Quality’s Environmental Crimes Unit and the Department of Transportation’s Office of the Inspector General, will prosecute anyone whose actions place the public at risk.”
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. 
Bowman faces up to five years in federal prison and a fine of up to $250,000 at sentencing.  A sentencing date has not been set.  Charges remain pending against PACES.  The corporation faces a fine of up to $500,000 per count.
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 – Four Jacksonville, Texas men have been indicted and arrested in connection with a violent crime spree targeting area businesses in the Eastern District of Texas announced U.S. Attorney John M. Bales today.

                Jonathan Roshard Brown, 21, Maurice Deshun Jones, 30, Willie Duane Rogers, 24, and Michael Dangelio Johnson, 25, were named in an 8-count indictment returned by a federal grand jury on Apr. 24, 2013.  The defendants will be arraigned on Wednesday before U.S. Magistrate Judge Judith Guthrie.

The indictment alleges that beginning on Oct. 2, 2011, Brown, Jones, Rogers and Johnson conspired together to commit robbery, which unlawfully obstructed, delayed and affected commerce in violation of federal law.  The defendants are specifically alleged to have committed four armed robberies in Jacksonville during this crime spree which began on Oct. 2, 2011 when Brown, Jones and Rogers stole $9,465 from the Wal-Mart Supercenter in Jacksonville.  On May 25, 2012, Rogers and Jones were stopped for a traffic violation in Jacksonville.  Rogers was arrested for driving without a valid driver license and Jones was arrested for being a felon in possession of a firearm.  A loaded handgun was found protruding from underneath the front passenger seat of the vehicle.  On Nov. 2, 1012, Brown, Jones and Rogers robbed the Razorback Grocery on Hwy 69 in Jacksonville.  Brown brandished a handgun and demanded money from the owner.  Razorback Grocery suffered a loss of approximately $16,000 in cash and $6,900 in Texas lottery tickets.  On Nov. 16, 2012, Brown, Jones, Rogers and Johnson again robbed the owner of the Razorback Grocery while he was waiting int eh commercial drive-thru line at the Austin Bank on West Commerce Street in Jacksonville.  During the robbery Brown fired a handgun, striking the victim.  The bullet passed through the victim’s hand, throat and shoulder.  The victim survived after being airlifted to a Tyler hospital.  The defendants obtained an undetermined amount of cash from the victim’s vehicle.  The armed robbery resulted in the closure of Razorback Grocery and the temporary closure of Austin Bank.  On Nov. 23, 2012, Brown and jones attempted to rob the owner of the Fast Fuel on Hwy 69 in Jacksonville.  The owner was able to strike Brown and flee.  From Mar. 19 to Mar. 23, 2013, Rogers, through a series of telephone calls recorded by law enforcement, attempted to bribe a witness in the investigation by offering a payment in exchange for the witness recanting a statement to investigators. 

Jones was arrested on May 5, 2013 near Bullard, Texas.  Rogers was arrested on May 5, 2013 in Jacksonville.  Brown and Johnson have been in state custody at the Cherokee County Jail on related charges.  

The defendants are each charged with one count of Hobbs Act conspiracy.  Jones is also charged with being a felon in possession of a firearm, two counts of Hobbs Act robbery, and one count of brandishing a firearm during a violent crime.  Brown is also charged with three counts of Hobbs Act robbery and two counts of brandishing a firearm during a violent crime.  Rogers is also charged with two counts of Hobbs Act robbery, two counts of brandishing a firearm during a violent crime, and one count of obstruction of a criminal investigation.  Johnson is also charged with one count of Hobbs Act robbery and one count of brandishing a firearm during a violent crime.  Under federal law, where there are multiple counts of brandishing a firearm in a crime of violence, the first conviction is punishable by a minimum of seven years in federal prison, and additional convictions are punishable by a minimum of 25 years in prison, and each sentence must be served consecutively to any other sentence.  The Hobbs Act violations each carry a maximum of 20 years in federal prison.  The felon in possession charge carries a term of up to 10 years in federal prison.  The obstruction of justice charge is punishable by a term of up to five years in federal prison. 
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 FBI East Texas Gang Initiative and the Jacksonville Police Department with assistance from the Cherokee County District Attorney’s Office.  This case is being prosecuted by Assistant U.S. Attorney Richard Moore.

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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 TYLER, Texas – A 40-year-old Joaquin, Texas man has pleaded guilty to federal drug charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

Dean Allen Tucker pleaded guilty to possession of pseudoephedrine with intent to manufacture methamphetamine today before U.S. Magistrate Judge John D. Love.

                According to information presented in court, on Nov. 13, 2008, Tucker purchased cold pills containing pseudoephedrine from the Ken turner Pharmacy in Carthage, Texas, with intentions of manufacturing methamphetamine.  Tucker also admitted to purchasing cold pills on 25 additional occasions from Nov. 18, 2008 to Apr. 15, 2009, amounting to approximately 58.44 grams of pseudoephedrine.  A grand jury returned a federal indictment on Nov. 7, 2012, charging Tucker and Christine Stephens Carroll with drug trafficking crimes.  Carroll was sentenced to 71 months in federal prison on Aug. 20, 2012. 

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

                This case is being investigated by the Texas Department of Public Safety and the Panola County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Jim Noble.

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 TYLER, Texas — A 45-year-old Grapeland, Texas man has been arrested on child exploitation charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

Robbie Newby was indicted by a federal grand jury on Apr. 17, 2013, and charged with four counts of sexual exploitation of a child and one count of possession of child pornography.  Newby went before U.S. Magistrate Judge John D. Love today for an initial appearance.

According to the indictment, from January to March 2012, Newby coerced or persuaded a minor to engage in sexually explicit conduct for the purpose of producing visual depictions of such conduct.  The conduct is alleged to have occurred in Anderson County, Texas.

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

If convicted, Newby faces a minimum of 15 years in federal prison for each of the exploitation charges and up to 10 years for the possession charge.

This case is being investigated by the Department of Homeland Security - Homeland Security Investigations DHS-HSI and the Anderson County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Nathaniel Kummerfeld.
It is important to note that an arrest, indictment, or complaint should not be considered as evidence of guilt and that all persons charged with a crime are presumed innocent until proven guilty beyond a reasonable doubt.

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 SHERMAN, Texas — A 53-year-old McKinney, Texas photographer has been arrested on child exploitation charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

Todd Fleming was indicted by a federal grand jury on Apr. 17, 2013, and charged with 24 counts of sexual exploitation of a child and one count of possession of child pornography.  Fleming's initial appearance was held in TYLER before Magistrate Judge John D. Love.

According to the indictment, from 1999 to 2007, Fleming coerced or persuaded minors to engage in sexually explicit conduct for the purpose of photographing such conduct.

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

If convicted, Fleming faces a minimum of 15 years in federal prison for each of the exploitation charges and up to 10 years for the possession charge.

This case is being investigated by the Department of Homeland Security - Homeland Security Investigations DHS-HSI and the Texas Department of Public Safety – Criminal Investigations Division and prosecuted by Assistant U.S. Attorney Nathaniel Kummerfeld.
It is important to note that an arrest, indictment, or complaint should not be considered as evidence of guilt and that all persons charged with a crime are presumed innocent until proven guilty beyond a reasonable doubt.

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

Tariq Mahmood, 61, of Cedar Hill, Texas, was indicted by a federal grand jury on April 11, 2013, and charged with conspiracy to commit health care fraud and seven counts of health care fraud.  Mahmood went before U.S. Magistrate Judge John D. Love today for an initial appearance.

 According to the indictment, Mahmood, a general practitioner, owned and operated several hospitals in the state of Texas, including Cozby Germany Hospital in Grand Saline, Renaissance Terrell Hospital in Terrell, Central Texas Hospital in Cameron, Community General Hospital in Dilley, and Shelby Regional Medical Center in Center.  From April 2010 to April 2013, Mahmood and others are alleged to have carried out a scheme to defraud Medicare and Medicaid through the submission of false and fraudulent claims.  Mahmood and others added, changed, deleted, and incorrectly sequenced diagnostic codes in a way that did not reflect the actual diagnoses and conditions of the patients.  They submitted false and fraudulent claims to Medicare and Medicaid based on the added, changed, deleted, and incorrectly sequenced diagnostic codes.  By means of fraudulent billing practices, the defendant and his co-conspirators are alleged to have unlawfully submitted false claims of more than $1.1 million and obtained more than $375,000.

If convicted, Mahmood faces up to 10 years in federal prison for each charge.

 The investigation leading to the charges was conducted by agents from the Texas Office of the Attorney General – Medicaid Fraud Control Unit (OAG-MFCU), the Federal Bureau of Investigation (FBI), the U.S. Department of Health and Human Services – Office of the Inspector General (HHS-OIG), and the U.S. Postal Inspection Service (USPIS).  Assistant U.S. Attorney Nathaniel C. Kummerfeld is prosecuting 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)

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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 BEAUMONT, Texas – A 39-year-old Beaumont, Texas man has been sentenced to federal prison for bank robbery in the Eastern District of Texas, announced U.S. Attorney John M. Bales. 
               
                Jonathan Keith Roberts pleaded guilty on Aug. 23, 2012, to two counts of bank robbery and brandishing a firearm during a crime of violence and was sentenced to 180 months in federal prison today by U.S. District Judge Thad Heartfield. 
 
                According to information presented in court, on Dec. 4, 2009, Beaumont police officers were dispatched to BBVA Compass Bank on Phelan Boulevard in Beaumont, in reference to a robbery. During their investigation, officers learned that a man wearing a black mask entered the front door when tellers were changing their registers, resulting in more cash than usual being on hand at the counter. He produced a handgun and started shouting at employees as he approached the counter. He placed a blue nylon bag on the counter and approximately three times, said, "Give me your money now!" The man pointed the gun at several of the bank stations, showing employees the registers from which he wanted money. He did not point to any of the stations that had no money in them, which was strange to the employees. When employees hesitated, he said he would shoot one of them to show them he was serious. Employees put the money in the bag as directed, and, after the man grabbed the bag, he told the employees to go to the back. He told them not to come out and then he quickly fled on foot. The employees locked themselves in a room to hide until officers arrived.  It was later determined that $29,170.89 had been stolen during the robbery.

                On Jan. 9, 2010, as the manager of the Guaranty Bank on Interstate 10 East in Beaumont walked toward the entry door to lock the door in preparation to close for the day, a man wearing a mask and dressed in black entered the bank with an automatic handgun. The man pointed the firearm toward her and another worker and ordered them to get on their knees. They did not move fast enough so the man chambered a round in the gun to show that the gun was loaded and he was serious. In doing so, a .40 caliber live round dropped to the floor that had already been in the chamber. He then made them crawl to the back of the lobby and lay down on the floor.

                A co-actor with a handgun entered the bank behind the first man. The co-actor went to the counter and approached a customer, pointed a gun at her back, and told her "get your hands up."  The customer raised her hands and dropped $60 that she was holding in her hand. The robber took her money and ordered her to walk to the back of the lobby. He opened the door that led to the break room/restroom areas. At that moment, a hired contractor who had been working on signs at the bank, exited the restroom and was also ordered around at gunpoint. The co-actor then led Larzo and the contractor back to the lobby and onto the floor. An employee put money in a bag as instructed by one of the robbers. The employee also put a "dye pack" and "bait bills" in the bag. The robber wanted more money, and asked for a manager. The robber was told there was no more money and the robbers then left the bank on foot.

                A witness had seen the two actors being dropped off at the bank by the driver of a car that left the area and parked in the area of a nearby hotel. When the actors left the bank, they ran to the get-away car. Witnesses observed the men as a dye pack exploded while one of the robbers was carrying the bag of money. The explosion caused the robber to fall, but he got up and limped to the vehicle which then sped away.

                During a subsequent investigation of a robbery at Harbor Freight Store in Beaumont, officers interviewed Jonathan Roberts who confessed to taking part in both bank robberies as well as the Harbor Freight Store robbery.  Roberts knew details about the robberies that were not released to the public, such as the description of the witnesses and the presence of the dye pack in the January 9, 2010 bank robbery.

This case was investigated by the FBI and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney Baylor Wortham.

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 BEAUMONT, Texas – Five Shelby County, Texans residents have been arrested in connection with a drug trafficking conspiracy in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

A 13-count indictment was returned by a federal grand jury on Apr. 17, 2013 charging the following individuals with federal gun and drug crimes:

Lakeva Shillette Hill, a/k/a Sugar Momma, 35; Lester Earl Pitts, 48; Vincent Jermaine Lathan, a/k/a Reed Cartwright, 36; Cornelius Vansharles Gray, 36; and
Anthony Gene Chumbley, 46.

The indictment alleges that beginning in May 2010, Hill, Pitts, Lathan and Gray were involved in a conspiracy to distribute marijuana and crack cocaine in East Texas.  Hill, Pitts and Gray are also charged with conspiracy to possess a firearm in furtherance of a drug trafficking crime and possession of a firearm during a drug trafficking crime.  Pitts is charged with three counts of providing a firearm to a drug trafficker and three counts of providing a firearm to a convicted felon.  Hill and Chumbley are charged with being a felon in possession of a firearm. 

The defendants were arrested on Apr. 18, 2013 and made initial appearances before U.S. Magistrate Judge Keith Giblin on Apr. 22, 2013.

If convicted of the drug conspiracy charge, the defendants each face up to life in federal prison.  The firearms conspiracy charge carries a maximum penalty of 20 years in federal prison.  The firearms possession charges carry a penalty of a minimum of five years in prison.  For providing a firearm to a drug dealer or a convicted felon, the defendant faces up to 10 years for each charge.  For being a felon in possession of a firearm, the defendants each face a minimum of 15 years in federal prison. 

            This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Texas Department of Public Safety, and the Center Police Department and prosecuted by Assistant U.S. Attorney John B. Ross.

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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 MARSHALL, Texas – A 36-yesr-old Durango, Durango, Mexico, man has been sentenced to federal prison for immigration violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today. 

                Juan Gallardo-Simental pleaded guilty on Nov. 15, 2012, to being unlawfully present in the United States after having been previously deported, and was sentenced to 14 months in federal prison on Apr. 19, 2013, by U.S. District Judge Rodney Gilstrap.

According to information presented in court, on Aug. 28, 2012, Gallardo was found at the Harrison County jail by federal agents.  Further investigation revealed Gallardo was unlawfully in the United States after having been deported following a battery conviction in Benton County, Arkansas, in 2006.  Gallardo was indicted by a federal grand jury on Sep. 12, 2012 and charged with immigration violations.  Gallardo will be deported following the completion of this prison sentence

                This case was investigated by the Harrison County Sheriff’s Office and the Homeland Security Investigations HSI-ICE and prosecuted by Assistant U.S. Attorney Allen Hurst.

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 BEAUMONT, Texas — A 32-year-old Port Neches, Texas man has been arrested on child exploitation charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

Christopher Dale Harrison was arrested on Apr. 19, 2013 pursuant to a federal criminal complaint charging him with possession, distribution, receipt, and production of child pornography.  Harrison appeared before U.S. Magistrate Judge Keith F. Giblin today.

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

If convicted, Harrison faces up to 30 years for the production charges and up to 10 years for the other charges.

This case is being investigated by the Homeland Security Investigations HSI-ICE, the Port Neches Police Department, the Beaumont Police Department, and the Orange County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Michelle Englade.
It is important to note that an arrest, indictment, or complaint should not be considered as evidence of guilt and that all persons charged with a crime are presumed innocent until proven guilty beyond a reasonable doubt.

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 MARSHALL, Texas – A 56-year-old Karnack, 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. 

David Lynn Sirmans pleaded guilty on Dec. 17, 2012, to manufacturing methamphetamine and was sentenced to 60 months in federal prison on Apr. 19, 2013, by U.S. District Judge Rodney Gilstrap.

            According to information presented in court, Sirmans was involved in a conspiracy with others to purchase cold pills containing pseudoephedrine at multiple pharmacies across East Texas.  Sirmans admitted to using the cold pills to manufacture methamphetamine at his residence near Karnack.    

Sirmans, along with 16 co-defendants, was indicted by a federal grand jury on Feb. 1, 2012 and charged with federal drug trafficking violations 

This case was investigated by the Texas Department of Public Safety Criminal Investigations Division and the Harrison County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Allen Hurst.

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 MARSHALL, Texas – A 56-year-old Marshall, 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.

Adrian Denova Sanchez pleaded guilty on Jan. 30, 2013, to conspiracy to possess with intent to distribute and distribution of methamphetamine and was sentenced to 127 months in federal prison on Apr. 19, 2013, by U.S. District Judge Rodney Gilstrap.  Sanchez was also ordered to forfeiture  of $10,000.00 to the U.S. Marshal Service.

                According to information presented in court, between November 2009 and October 2012, Sanchez was involved in a conspiracy to manufacture and distribute methamphetamine and cocaine in East Texas.  Sanchez admitted to distributing over 50 grams of methamphetamine and selling a semi-automatic pistol during the conspiracy.  Sanchez and four others were indicted on Nov. 7, 2012 and charged with federal drug and gun crimes. 

                This case was investigated by the Federal Bureau of Investigation, the Marshall Police Department, the Harrison County District Attorney’s Office, the Harrison County Sheriff’s Office and the Texas Department of Public Safety-Special Crimes and prosecuted by Assistant U.S. Attorney Allen Hurst.

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 BEAUMONT, Texas — U.S. Attorney John M. Bales announced a settlement reached with a European shipping corporation has resulted in significant enhancements to nature conservation groups in the Eastern District of Texas.

                The $1 million settlement was announced at a press conference on the banks of Village Creek in Hardin County, Texas today.  CIMPSHIP Transportes Maritimos, S.A., a Portuguese corporation headquartered in Funchal, Portugal, was initially indicted in 2010 and charged with conspiring to violate environmental laws causing willful pollution of waterways within the Eastern District of Texas.   

According to the indictment, CIMPSHIP owned the Niebla, a 38,000 ton ocean-going ship which was operated as a bulk-freight carrier transporting bulk cargo from various ports in the Gulf Coast including Port Arthur, Texas.  It is alleged that from Mar. 2008 through Aug. 2009, Niebla crew members failed to maintain an Oil Record Book as required by federal law.

A settlement agreement was reached between the government and CIMPSHIP in which CIMPSHIP agreed to pay a $1 million community service payment to be used for local conservation efforts in lieu of prosecution.  Federal statutes authorize such settlements to Congressionally-approved Foundations.

Of the $1 million, $600,000 was provided to The Conservation Fund, a nonprofit organization that works to conserve special places in Texas and across the country, and used to purchase a critical parcel of land in a sensitive portion of the Big Thicket National Preserve.  The 361 acres are located near Village Creek in Hardin County. 

The remaining $400,000 was provided to the National Marine Sanctuary Foundation and used to support research and monitoring activities at the Flower Garden Banks National Marine Sanctuary.  The Flower Garden Banks National Marine Sanctuary is home to the northernmost coral reef on the U.S. continental shelf and boasts a habitat that is relatively pristine, due in part to protective sanctuary regulations.  The sanctuary is located approximately 90 miles southwest of Sabine Pass, Texas in the Gulf of Mexico.

This case was investigated by the U.S. Coast Guard and prosecuted by Assistant U.S. Attorney Joseph R. Batte and former Assistant U.S. Attorney Kevin D. Collins

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 SHERMAN, Texas – Six North Texans have been indicted and arrested in connection with a mortgage fraud conspiracy in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

A five-count indictment was returned by a federal grand jury on Apr. 12, 2013 charging the following individuals with conspiracy to commit mail and wire fraud:

Lawrence Michael Day, 63, of Fort Worth
Donna Shirley Cobb, 52, of Aledo, Texas
Bryan Jerome Scott, 42, of Spring, Texas
Michael Jerome Edwards, 40, of Flower Mound/Lewisville, Texas
Scott Cameron Sherman, 37, of Mansfield, Texas
Donald Lee Mattox, 40, of Mansfield, Texas

The indictment alleges that from Sep. 2005 through July 2008, the defendants conspired with each other to defraud lending institutions by obtaining mortgage loans using fraudulent information.  According to the indictment, the defendants devised a scheme in which Day recruited buyers, such as Mattox, to submit fraudulent loan applications for home mortgages.  To facilitate the scheme, Edwards and Scott, loan officers, falsified materials including employment and rental income on loan applications.  Builders, such as Sherman and Mattox, permitted the actual purchase price of the homes to be overstated on the loan documents.  Cobb, an escrow officer, prepared fraudulent documents reflecting false purchase prices and disbursements.  The conspiracy extended to transactions on 28 Texas residential properties located in Fort Worth, Frisco, Fairview, Dallas, McKinney, Cedar Hill, Prosper, Cresson, Watauga, Euless, Hurst, Heath, Murphy, and Plano.  Day, Edwards and Sherman are also charged with two counts of wire fraud and Day is charged with two counts of aggravated identity theft.   

The defendants are scheduled to make initial appearances this afternoon before U.S. Magistrate Judge Amos Mazzant.

If convicted of the conspiracy charge, the defendants each face up to 30 years in federal prison.  The wire fraud charges also carry a maximum penalty of 30 years in federal prison.  The identity theft charges carry a penalty of two additional years in federal prison.    

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

                This case is being investigated by the FBI and the FHFA-OIG and prosecuted by Assistant U.S. Attorney Chris Eason. 

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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 TYLER, Texas – A 44-year-old Terrell, Texas man has pleaded guilty to federal drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

James Clinton Squires pleaded guilty to conspiracy to distribute and possession with intent to distribute methamphetamine today before U.S. Magistrate Judge Judith K. Guthrie.

                According to information presented in court, on Aug. 2, 2012, Squires distributed approximately 8 grams of methamphetamine to Jason Ray Ragan in Terrell, Texas.  Squires knew Ragan intended to return to Gregg County, Texas with the methamphetamine for redistribution in the Eastern District of Texas.  Squires also admitted to possessing more than 50 grams of methamphetamine at his residence on Aug. 3, 2012.  In addition to supplying drugs to Ragan, Squires also traveled to Tyler, Texas; Lindale, Texas, and Pritchett, Texas to distribute methamphetamine.  A federal indictment was returned on Sep. 12, 2012 charging Squires and Ragan with federal drug crimes. 

Ragan pleaded guilty on Feb. 6, 2013 and is awaiting sentencing.  Squires faces a minimum of 10 years and up to life in federal prison at sentencing.  A sentencing date has not been set. 

                This case is being investigated by the Drug Enforcement Administration and the Texas Department of Public Safety prosecuted by Assistant U.S. Attorney Mary Ann Cozby.

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 BEAUMONT, Texas - A 31-year-old Nacogdoches, 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.

                Lincoln Jerome Watts pleaded guilty on Nov. 19, 2012, to being a felon in possession of a firearm and was sentenced to 90 months in federal prison today by U.S. District Judge Ron Clark.

According to information presented in court, on Nov. 13, 2011, law enforcement authorities responding to a report of a disturbance involving a weapon encountered Watts in the 100 block of Zula Street in Nacogdoches, Texas.  Watts consented to a search and was arrested after an officer discovered a loaded pistol in Watts’ front pants pocket. Further investigation revealed Watts was a convicted felon having been found guilty of aggravated robbery in  Nacogdoches County; possession of a firearm while under indictment in the Eastern District of Texas; possession of a stolen firearm in the Eastern District of Texas; and burglary of a federal firearms licensee in the Eastern District of Texas, all in 2001.  Federal law prohibits a convicted felon from owning or possessing firearms or ammunition.  Watts was indicted by a federal grand jury on Oct. 3, 2012. 
This case was prosecuted as part of the Project Safe Neighborhoods Initiative. Project Safe Neighborhoods is aimed at reducing gun and gang violence, deterring illegal possession of guns, ammunition and body armor, and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state and local law enforcement agencies.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Nacogdoches Police Department and prosecuted by Assistant U.S. Attorney Joseph R. Batte.

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 TYLER, Texas - A 49-year-old Grand Saline, Texas man has been sentenced to serve more than three years in a federal prison for possessing a firearm after having been previously convicted of three felony offenses, announced U.S. Attorney John M. Bales today.

            Andrew Mark Harris pleaded guilty on January 10, 2013, to possessing a .22 caliber pistol loaded with seven bullets after having been convicted of 3 felony crimes and was sentenced to 40 months incarceration by U.S. District Judge Leonard Davis during a hearing today.

According to information presented in court, on April 26, 2012 a Grand Saline police officer stopped Harris for driving a car displaying an expired inspection sticker.  The officer arrested Harris for the offense and then conducted a property inventory of the car’s contents.  The inventory led to the discovery of the loaded pistol.  In 2004 Harris was convicted in federal court for distributing methamphetamine.  He also has Debit Card Abuse and Credit Card abuse convictions in Kaufman and Van Zandt Counties, respectively.     

            This case was investigated by the Grand Saline Police Department and the Bureau of Alcohol, Tobacco, and Firearms, Tyler Office and was prosecuted by Assistant U.S. Attorney Jim Noble.

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 BEAUMONT, Texas – Eleven individuals have been indicted for being involved in a major cocaine distribution ring responsible for money laundering and trafficking drugs through the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

An indictment was returned by a federal grand jury on Apr. 4, 2012, charging three individuals with conspiracy with intent to distribute cocaine.  A separate two-count indictment was returned on Feb. 6, 2013 charging eight individuals with conspiracy with intent to distribute cocaine and conspiracy to launder money.  Federal agents with the Drug Enforcement Administration and Internal Revenue Service – Criminal Investigation executed arrest warrants today for the 11 defendants.  Those named in the indictments, which were unsealed today, are:

Jerry Trevino, 46, of Spring, Texas; Alvin Nelson, 60, of Houston; Thomas Drew Widak, 44, of Houston; Cesar I. Alvarez-Barrera, 43, of Tomball, Texas; Eduardo Silva, 39, of Roma, Texas; Juan Javier Correa, 53, of McAllen, Texas; Douglas Francis Waindel, 29, of Atlanta, GA; Jaime Luis Vivero-Flores, 46, of Houston; Jesus Amaya-Saenz, 29, of Hockley, Texas; Alfredo Soto-Valdez, 39, of Austin; and
Sandra Calderon Martinez, 31, of Houston.

The April 2012 indictment alleges that from 1995 to June 2011, Trevino, Nelson and Widak conspired with others to distribute at least five kilograms of cocaine in the Eastern District of Texas and elsewhere. 

The February 2013 indictment alleges that from 2003 to February 2013, Alvarez-Barrera, Silva, Correa, Waindel, Vivero-Flores, Amaya-Saenz, Soto-Valdez, and Martinez conspired to distribute at least five kilograms of cocaine in the Eastern District of Texas and elsewhere.  They are also charged with conspiring to launder the proceeds of their illegal drug trafficking enterprise. 

            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.  During this operation, two individuals (Barrera and Trevino) believed to be leaders of major drug trafficking were arrested.  Correa, who is also believed to be the leader of a major drug trafficking organization, remains at large.  Law enforcement authorities are also still searching for Amaya-Saenz and Martinez.

The defendants all face a minimum of 10 years and up to life in prison for the drug conspiracy charge.  The money laundering conspiracy charge carries a penalty of up to 20 years in federal prison.

This case is being investigated by the U.S. Drug Enforcement Administration, the Internal Revenue Service-Criminal Investigation, Homeland Security Investigations, the Jefferson County Sheriff’s Office, the Port Arthur Police Department, the Houston Police Department, the Harris County Sheriff’s Office, the Nacogdoches County Sheriff’s Office, the U.S. Marshals Service and the Texas Department of Public Safety.  This case is being prosecuted by Assistant U.S. Attorney John Craft.

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

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 TYLER, Texas – A 51-year-old Yantis, Texas woman has pleaded guilty to federal firearms violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today. 

Andrea Jaine Burns London pleaded guilty to conspiracy to not keep required records today before U.S. Magistrate Judge Judith Guthrie.

London and Lucretia Beth Brown, 45, also of Yantis, were indicted on July 11, 2012, and charged with gun trafficking violations.  Federal agents executed search warrants at their home and business in November 2011.   A warrant was issued for their arrest, but it was soon discovered that the pair had left the United States for the Philippines in February 2012.  Assistance was requested from the International Investigations Branch and a lead was sent to the Diplomatic Security Service in Manila.  On Oct. 9, 2012, Philippine Immigration Agents arrested London and Brown in Cebu without incident.  Both subjects were transported to Manila to begin the deportation process.  On Nov. 8, 2012, London and Brown were escorted by Philippine Immigration Agents from Manila to Los Angeles where they were taken into custody by the Pacific Southwest Regional Fugitive Task Force.   

According to information presented in court, from January 2011 to July 2011, London and Brown transported guns from the inventory of Lake Fork Gunslinger & Outdoors in Emory, Texas, to gun shows in Oklahoma, Missouri, and Arkansas, and then sold the guns without properly recording the name, age, and place of residence of the buyers.  Brown pleaded guilty on Feb. 14, 2013, to conspiracy to fail to perform backgrounds checks and is awaiting sentencing.

                London faces up to 10 years in federal prison at sentencing.  A sentencing date has not been set.
This case is being prosecuted as part of the Project Safe Neighborhoods Initiative. Project Safe Neighborhoods is aimed at reducing gun and gang violence, deterring illegal possession of guns, ammunition and body armor, and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state and local law enforcement agencies.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the U.S. Marshals Service and prosecuted by Assistant U.S. Attorney Jim Noble.

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 BEAUMONT, Texas – A 24-year-old Beaumont man has pleaded guilty to child pornography violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
 
Michael Brandan Griffith pleaded guilty to possession of child pornography today before U.S. District Judge Keith F. Giblin.

According to information presented in court, on Jan. 20, 2012, federal and local agents executed a search warrant at Griffith’s residence in Beaumont, Texas.  Several computers and digital storage devices were seized during the search and found to contain more approximately 111 images and 59 videos of child pornography.  Some of the material included prepubescent children under the age of 12 engaged in sexually explicit conduct. 
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Griffith faces up to 10 years in federal prison.  A sentencing date has not been set.
This case is being investigated by the Homeland Security Investigations and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney Christopher T. Tortorice. 

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 BEAUMONT, Texas – A 28-year-old Beaumont, Texas man has been sentenced to federal prison for burglarizing a bank in the Eastern District of Texas, announced U.S. Attorney John M. Bales. 
             
Michael Anthony Jones pleaded guilty on Jan. 14, 2013, to bank burglary and was sentenced to 30 months in federal prison today by U.S. District Judge Marcia Crone.  Jones was also ordered to pay restitution in the amount of $2,908.50.

According to information presented in court, on June 8, 2012, Jones burglarized the Chase Bank branch on Washington Blvd. in Beaumont by breaking a window while the bank was closed.  Jones admitted to stealing $2,908.50 in cash from the bank.  Jones was arrested in Louisiana on Aug. 2, 2012, and questioned about an unrelated charge.  During questioning, he admitted to burglarizing the bank in Beaumont.  Jones was indicted by a federal grand jury on Nov. 7, 2012 and charged with bank burglary.   

This case was investigated by the FBI and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney Randall L. Fluke.

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  BEAUMONT – U.S. Attorney John M. Bales welcomed Reverend William A. Lawson as the guest speaker at a special program commemorating the observance of African American (Black) History in Beaumont today. 

This year marks two important anniversaries in the history of African Americans and the United States.  On January 1, 1863, the Emancipation Proclamation set the United States on the path of ending slavery.  A wartime measure issued by President Abraham Lincoln, the proclamation freed relatively few slaves, but it fueled the fire of the enslaved to strike for their freedom. 

In 1963, a century later, America once again stood at the crossroads.  Nine years earlier, the U.S. Supreme Court had outlawed racial segregation in public schools, but the nation had not yet committed itself to equality of citizenship.  Segregation and innumerable other forms of discrimination made second-class citizenship the extra-constitutional status of non-whites.  Another American president caught in the gale of racial change, John F. Kennedy, temporized over the legal and moral issue of his time.  Like Lincoln before him, national concerns, and the growing momentum of black mass mobilization efforts, overrode his personal ambivalence toward demands for black civil rights.  On August 28, 1963, hundreds of thousands of Americans, blacks and whites, Jews and gentiles, Protestants and Catholics, marched to the memorial of Abraham Lincoln, the author of the Emancipation Proclamation, in the continuing pursuit of equality of citizenship and self-determination.  It was on this occasion that Martin Luther King, Jr. delivered his celebrated “I Have a Dream” speech.  Just as the Emancipation Proclamation had recognized the coming of the end of slavery, the March on Washington for Jobs and Freedom announced that the days of legal segregation in the United States were numbered. 

Rev. Lawson, a native of St. Louis, Missouri, earned Bachelor of Divinity and Master of Theology degrees from Central Baptist Theological Seminary.  After graduation, he moved to Houston to serve as Professor of Bible and Director of the Baptist Student Union at Texas Southern University.  Rev. Lawson is the founding pastor of Wheeler Avenue Baptist Church.  With the help of his wife, Audrey, the church was first established in their home in June 1962.  Since the time of the church’s birth during the early years of the Civil Rights Movement, Rev. Lawson has been deeply involved in advocacy activities for African Americans, Hispanics, women, and the poor.  During his 42-year tenure as pastor, Wheeler Avenue Baptist Church grew to over 8,000 members with many outreach programs.  Rev. Lawson has received honorary doctorates from Howard Payne University, The University of Houston, and Texas Southern University.  He is now retired from his pastorate, but Rev. Lawson remains active in various community causes, civic clubs and local government efforts. 

As a young pastor, Rev. Lawson became acquainted with Martin Luther King, Jr.  Dr. King once visited Wheeler Avenue Baptist Church, when it was only a one-story, frame house with 50-60 members.  Dr. King invited Rev. Lawson to join him, Dr. Ralph Abernathy, and others to be a part of the Southern Christian Leadership Conference in Atlanta.  Fearing that his departure would seriously weaken his small church, Rev. Lawson declined.  He continued to work closely with Dr. King to establish the Houston chapter of the SCLC and thus was instrumental in pioneering the cause of civil rights there. 

In 1996, the William A. Lawson Institute for Peace and Prosperity (WALIPP) nonprofit organization was established by a group of community leaders to honor Rev. Lawson on the occasion of his 50 years in the ministry.  WALIPP is the parent agency of WALIPP-Texas Southern University Preparatory Academy, WALIPP Senior Residence independent living facility and WALIPP Public Defender Program, all located in Houston.    

Rev. Lawson graciously agreed to share his personal experiences with Dr. King, with U.S. Attorney Bales and employees of the Eastern District of Texas.  The event was held in Beaumont and transmitted to employees in the Lufkin, Tyler, Plano, Sherman, and Texarkana Divisions.

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  BEAUMONT, Texas – A 61-year-old Deweyville, 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 James Frederick pleaded guilty on Oct. 30, 2012, to possession of child pornography and was sentenced to 120 months in federal prison today by U.S. District Judge Ron Clark.

According to information presented in court, on Jan. 14, 2011, police received a report claiming a minor had been sexually assaulted by Frederick.  The minor provided a statement to police that Frederick sexually assaulted her on several occasions, and, on at least one occasion, took Polaroid photographs of her engaged in actual or simulated sexual acts.  Federal officials executed a search warrant at Frederick’s residence in Deweyville, Texas, and seized a laptop computer and numerous compact discs.  Although photographs of the minor were not found, a forensic examination of the seized items revealed more than 600 images of child pornography.  Some of the material included prepubescent children under the age of 12 engaged in sexually explicit conduct.  Frederick was indicted by a federal grand jury on Sep. 5, 2012, 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 Federal Bureau of Investigation and the Newton County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Christopher T. Tortorice.

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  BEAUMONT, Texas – A 39-year-old Edinburg, Texas, man has been sentenced to federal prison for enticing a minor in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
 
Hector Capetillo Rodriguez pleaded guilty on Oct. 31, 2012, to coercion or enticement of a child and was sentenced to 120 months in federal prison today by U.S. District Judge Ron Clark.

According to information presented in court, on May 30, 2012, Rodriguez approached a child inside a Port Arthur, Texas Wal-Mart and requested assistance in locating a particular toy.  During the conversation, Rodriguez asked for the child’s cellular phone number, which the child gave him.  Later that evening, Rodriguez began sending the child text messages thanking the child for assisting him.  An adult family member saw the text messages and contacted police, who then assumed the child’s identity and continued the text conversation with Rodriguez.  The defendant’s text messages became sexual and a meeting was arranged between Rodriguez and the police posing as the child.  Rodriguez arrived at Port Neches Park for what he believed to be a sexual encounter with the child and was arrested by police.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

This case is being investigated by HSI/ICE, the Port Arthur Police Department and the Port Neches Police Department and prosecuted by Assistant U.S. Attorney Christopher T. Tortorice.