Eastern District of Texas

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   PLANO, Texas – A 58-year-old Pasadena, Texas man has been found guilty of investment fraud charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

A federal jury needed just six minutes to convict Gary Lynn McDuff of conspiring to defraud investors of over $11 million in connection with an investment fraud scheme and laundering the proceeds.  The verdict was handed down on Mar. 27, 2013, following a two-day trial before U.S. District Judge Richard A. Schell.  McDuff’s co-conspirators, Gary Lancaster, 61, of Oregon, and Robert Reese, deceased, of Carmel, CA, previously pleaded guilty and were sentenced to federal prison for their roles in the scheme.

According to information presented in court, McDuff and Lancaster agreed to create the Lancorp Investment Fund, to draft a prospectus for the Fund, and to solicit investments from individuals across the United States.  While McDuff controlled the operation, Lancaster agreed to serve as the “front” since McDuff could not possess a securities license or sell securities because of a past felony conviction.  McDuff recruited Reese to also sell the investment, despite the fact that Reese had been barred by the State of California from selling securities based on past fraudulent conduct.  McDuff, Lancaster, and Reese made numerous false representations to their investors in order to induce payments, including representations that the Fund would only invest in A+ or A1 rated bonds, that the principal of each investment would be insured and never at risk, and that Lancaster had experience operating this type of investment.  McDuff, Lancaster, and Reese never disclosed McDuff’s felony conviction or Reese’s securities ban.  McDuff then laundered the criminal proceeds in order to promote the operation of the fraudulent scheme.

McDuff faces up to 20 years in federal prison on each count of conviction.  A sentencing date has not been set. 

           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 was investigated by the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigation and prosecuted by Assistant U.S. Attorneys Shamoil T. Shipchandler and Camelia Lopez. 

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  TYLER, Texas – A 32-year-old Canton, Texas Police Officer has been arrested for federal drug violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

James Melvin Bradshaw was indicted by a federal grand jury on Mar. 27, 2013 and charged with six counts of acquiring a controlled substance by misrepresentation.  Bradshaw was arrested this morning and went before U.S. Magistrate Judge Judith Guthrie this afternoon for an initial appearance.

According to the indictment, on six separate occasions from January to November 2012, Bradshaw is alleged to have used his position as a police officer to obtain hydrocodone by fraud, deception or misrepresentation.  Bradshaw is alleged to have acquired the hydrocodone from individuals who had legitimate prescriptions to possess the substance.

If convicted, Bradshaw faces up to four years in federal prison on each charge.   

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

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

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   BEAUMONT, Texas – Four Port Arthur, Texas men have been indicted and arrested in connection with a mail fraud scheme in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

An indictment was returned by a federal grand jury on Mar. 6, 2013 charging Christopher Thomas, 41, Lawrence Thomas, 42, Haleem Collins, 35, and Quarmi Garlington, 25, with conspiracy to commit mail fraud. 

The indictment, which was unsealed today, alleges that from Nov. 6, 2006, to Mar. 8, 2012, the defendants conspired with each other to defraud numerous auto insurance companies by submitting fraudulent insurance claims for personal injury and economic loss through the U.S. Postal Service.  According to the indictment, the defendants repeatedly staged automobile collisions in Port Arthur after having purchased policies on the vehicles involved.  Once the defendants either actually crashed the vehicles, or staged a collision, they would contact police and assume the roles of drivers and passengers for emergency personnel.  The indictment also alleges that the defendants would use aggressive driving tactics to induce automobile accidents with other unsuspecting drivers.  Following these collisions, the defendants would falsely claim to be injured and submit, by means of the mail, fraudulent accident claims. 

The defendants were taken into custody and made initial appearances this week before U.S. Magistrate Judge Zack Hawthorn.

If convicted of the conspiracy charge, the defendants each face up to 20 years in federal prison. 

This case is being investigated by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Port Arthur Police Department, and the National Insurance Crime Bureau and is being prosecuted by Assistant U.S. Attorney Baylor Wortham.

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

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   BEAUMONT, Texas – A 62-year-old Diboll, Texas woman has pleaded guilty to theft of federal funds in the Eastern District of Texas, announced U.S. Attorney John M. Bales. 
                 
Melva Darlene Blakemore pleaded guilty to an Information charging her with theft of federal funds on Mar. 26, 2013 before U.S. District Judge Marcia Crone. 

According to information presented in court, in May of 2008, while Blakemore was employed as a Senior Investigator with the Texas Health and Human Services Commission advised an individual receiving Supplemental Nutrition Assistance that they had been overpaid $2,520 on their Lone Star Card.  Blakemore told the individual that if they did not repay the money, she would be indicted and prosecuted.  Blakemore also advised the individual that if the money was paid in cash, with no receipt expected, Blakemore would send the money to someone she knew in Austin and that no charges would be filed.  The individual contacted local authorities who were able to observe the individual meeting Blakemore in a Nacogdoches, Texas parking lot.  Blakemore left the parking lot and drove away with the money before stopping to deposit a portion of it into her bank account.  The remainder of the money was found in her vehicle.

Blakemore faces up to 10 years in federal prison and restitution of up to $31,008.00.  A sentencing date has not been set.

This case is being investigated by the Texas Health and Human Services Commission, Texas Rangers, Federal Bureau of Investigation, Texas Department of Public Safety and the Nacogdoches County Sheriff’s Office.  This case is being prosecuted by Assistant U.S. Attorney Randall L. Fluke.

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    TYLER, Texas – A 34-year-old Tyler, Texas man has been sentenced to federal prison for drug trafficking crimes in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

                Marco Aguilera pleaded guilty on Sep. 4, 2012, to conspiracy to possess with intent to distribute methamphetamine and possession of a firearm during a drug trafficking crime.  He was sentenced today to 40 months for the drug conviction and 60 months for the firearms conviction.  U.S. District Judge Michael H. Schneider ordered the sentences to be served consecutively for a total of 100 months in federal prison.

According to information presented in court, in March 2012, Aguilera possessed and distributed methamphetamine in a Tyler, Texas apartment.  He admitted to conspiring with others to distribute more than 150 grams of methamphetamine in the Tyler area.  A federal grand jury returned an indictment on Apr. 11, 2012 charging Aguilera with federal drug trafficking violations.

This case was investigated by the Drug Enforcement Administration and the Smith County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Bill Baldwin.

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

Chelsea Elizabeth McDowell, 27, of Hickory, NC, and Sandra Christilov Sylvester, 41, of Lawndale, NC, pleaded guilty in November 2012 to conspiracy to possess with intent to distribute methamphetamine.  McDowell was sentenced to 54 months in federal prison and Sylvester was sentenced to 66 months in federal prison today by U.S. District Judge Michael H. Schneider.

            According to information presented in court, up until Jan. 29, 2011, McDowell and Sylvester conspired with others to assist in transporting methamphetamine and money obtained from selling drugs to East Texas.  During that time, both women were arrested in the Eastern District of Texas for possessing methamphetamine.  They each admitted to being responsible for distributing methamphetamine through East Texas to Atlanta, Georgia.  A federal indictment was returned on Apr. 11, 2012, charging them with federal drug crimes. 

            This case was investigated by the Texas Department of Public Safety and prosecuted by Assistant U.S. Attorney Bill Baldwin.

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     BEAUMONT, Texas – A 34-year-old Port Neches, Texas, man has pleaded guilty to child pornography violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
 
Jeremiah Paul Selman pleaded guilty to possession of child pornography today before U.S. District Judge Marcia Crone.

According to information presented in court, on Oct. 26, 2011, federal officials executed a search warrant at Selman’s residence in Port Neches, Texas.  A computer was seized during the search and found to contain more than 600 images of child pornography.  Some of the material included prepubescent children under the age of 12 engaged in sexually explicit conduct.  Selman was indicted by a federal grand jury on Jan. 10, 2013 and charged with child pornography violations.

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

Selman 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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      TEXARKANA, Texas – A 19-year-old Texarkana, Texas man has been sentenced to federal prison for bank robbery in the Eastern District of Texas, announced U.S. Attorney John M. Bales. 
                 
                Temetrius Manning pleaded guilty on Oct. 30, 2012, to bank robbery and was sentenced to 84 months in federal prison today by U.S. District Judge Michael H. Schneider.  Manning was also ordered to pay restitution in the amount of $3,490.99.

According to information presented in court, on Aug. 27, 2012, Manning entered the Wells Fargo Bank in Texarkana, Texas, and presented a threatening note to a bank teller demanding money.  Manning then fled the bank with the money before being apprehended shortly after.  Manning admitted to the charges following his arrest.  He was indicted by a federal grand jury on Sep. 12, 2012 and charged with bank robbery.   

This case was investigated by the FBI and the Texarkana, Texas Police Department and prosecuted by Assistant U.S. Attorney Nathaniel C. Kummerfeld.

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     BEAUMONT, Texas – A 40-year-old Silsbee, Texas lawyer has been sentenced to federal prison for bank fraud in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

Matthew Taylor Morones pleaded guilty on Sep. 6, 2012 to bank fraud and was sentenced to 24 months in federal prison today by U.S. District Judge Ron Clark. 

            According to information presented in court, on Dec. 21, 2005, Morones was appointed as the receiver for the Indian Paintbrush Development (IPD).  At that time, the organization had approximately $365,000 in its bank accounts, held at two different financial institutions.  From May to July 2007, Morones used the money from IPD’s account to purchase six certificates of deposit (CDs) from Guaranty Bank totaling $365,000.  On July 30, 2007, Morones obtained a $90,000 loan from Guaranty Bank, which was used to purchase a home.  Morones used one of the CDs purchased with IPD’s money as collateral to obtain the loan.  Morones was indicted by a federal grand jury on Mar. 21, 2012.

Morones has already paid back over $200,000.00.  He was ordered today to pay the remaining restitution in the amount of $165,000.00.

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

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          TYLER, Texas – A 43-year-old Tyler, Texas, methadone clinic owner has been sentenced to federal prison in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

            Edward Jacobs pleaded guilty on Dec. 18, 2012, to attempted arson and solicitation of murder for hire and was sentenced to 188 months in federal prison today by U.S. District Judge Leonard E. Davis.

            According to information presented in court, on Mar. 19, 2012, Jacobs gave Daniel Kubisty $3,000 to burn down the Add-Life Recovery Center, a methadone clinic located in a building at 3322 E. Fifth Street in Tyler.  Jacobs and Kubisty 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 for Kubisty’s murder.  ATF was monitoring the meeting and arrested Jacobs at the scene. 

            Kubisty pleaded guilty to attempted arson on Jan. 19, 2013 and is awaiting sentencing.

          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 50-year-old Athens, 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.

        Frankie Darrell Durant pleaded guilty on Jan. 8, 2013, to being a felon in possession of a firearm and was sentenced to 57 months in federal prison today by U.S. District Judge Leonard E. Davis.

       According to information presented in court, on July 26, 2011, three firearms were located in a storage room in Smith County, Texas which was being rented by Durant.  Further investigation revealed Durant was a convicted felon having been previously been found guilty of possession of a controlled substance.  As a convicted felon, Durant is prohibited by federal law from owning or possessing firearms or ammunition.  Durant 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 Texas Department of Public Safety and prosecuted by Assistant U.S. Attorney Mary Ann Cozby.

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            TYLER, Texas – A 49-year-old Kilgore, 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.

           Brett Bates pleaded guilty on Mar. 14, 2012, to conspiracy to possess with intent to distribute methamphetamine and was sentenced to 120 months in federal prison today by U.S. District Judge Leonard E. Davis.

            According to information presented in court, up until May 27, 2011, Bates conspired with other individuals to acquire and distribute methamphetamine in the Gregg County area of East Texas.  Bates admitted to being responsible for the distribution of more than 150 grams of methamphetamine during this time.  Bates was named in a federal indictment returned by a grand jury on Nov. 2, 2011. 

            Five of Bates’ co-defendants have also been sentenced.  Terri Rhea Young received a sentence of 24 months in federal prison on July 23, 1012.  David Christopher Wheeler and Raelene Dawn Ferguson were each sentenced to 46 months in federal prison on July 20, 2012.  Matthew Dean Willis was sentenced to 15 months in federal prison on June 12, 2012.  Harold Burgess Dickens received a 210 month sentence on Jan. 10, 2013.    

            This case was investigated by the DEA, Rusk County Sheriff’s Office and Kilgore Police Department and prosecuted by Assistant U.S. Attorney Bill Baldwin.

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       TYLER, Texas – A44-year-old San Bernardino, CA, 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.

        Reginald Lavann Eastern pleaded guilty on Aug. 30, 2012, to possession with intent to distribute cocaine and was sentenced to 43 months in federal prison today by U.S. District Judge Leonard E. Giblin.

       According to information presented in court, on Mar. 4, 2012, Eastern was in possession of approximately 1 kilogram of cocaine which he intended to deliver to others in the Eastern District of Texas.

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

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                TYLER, Texas – Three Anderson 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.

               Brandon Thomas Maciel, 26, of Palestine, Texas, Valerie Lynn Doyle, 24, of Itasca, Texas, and Jeremy Bice, 35, of Anderson County, Texas pleaded guilty to possession of pseudoephedrine with intent to manufacture methamphetamine in 2012 and were sentenced today by U.S. District Judge Leonard E. Davis.  Maciel received a sentence of 87 months in federal prison, Doyle was sentenced to 70 months in federal prison and Bice was sentenced to 37 months in federal prison.

                According to information presented in court, on Mar. 3, 2010, Bice purchased 2.4 grams of cold pills containing pseudoephedrine from a Wal-Mart in Palestine, Texas. Oct. 29, 2010, Maciel purchased 2.4 grams of cold pills containing pseudoephedrine at a Walgreens store in Palestine, Texas.  Doyle purchased 2.88 grams of cold pills containing pseudoephedrine at the same Walgreens store.  Maciel also admitted to making two other purchases of cold pills at a CVS store and a Wal-Mart in Palestine on the same day and on numerous other occasions.  The cold pills were purchased to be used in the manufacture of methamphetamine.  A federal indictment was returned on Apr. 11, 2012, charging Maciel, Doyle and Bice with federal drug crimes. 

               An additional co-defendant, Craig Lee Bice, pleaded guilty to the same charges and is awaiting sentencing. 

                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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                BEAUMONT, Texas – A 26-year-old Cooper, Texas man has been sentenced to federal prison for making threats against the President of the United States of America in the Eastern District of Texas, announced U.S. Attorney John M. Bales.

               Joseph Scott Sword, also known as Stretch, pleaded guilty on Dec. 19, 2012, to making threats against the President and was sentenced to 46 months in federal prison today by U.S. District Judge Ron Clark.

               According to information presented in court, on May 31, 2011, Sword, who was incarcerated in the Texas Department of Criminal Justice (TDCJ), Stiles Unit, located in Jefferson County, Texas, wrote a letter threatening the President and First Family.  Sword stated that he was a member of a violent street gang called the Black P Stone and that he had men on the street watching the President and his family.  Sword was indicted by a federal grand jury on July 18, 2012.

               Sword must complete the remainder of his state prison sentences of 8 years for burglary and 6 ½ years for robbery before he will be transferred to federal prison to begin serving this 46 month sentence. 

                This case was investigated by the U.S. Secret Service and prosecuted by Assistant U.S. Attorney Randall L. Fluke.

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               BEAUMONT, Texas – A45-year-old Lufkin, Texas man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

              Mark Dwaine Helton pleaded guilty on Oct. 31, 2012, to possession of pseudoephedrine with intent to manufacture methamphetamine and was sentenced to78 months in federal prison today by U.S. District Judge Ron Clark.

                According to information presented in court, on Oct. 12, 2011, Helton purchased cold pills containing pseudoephedrine at a Walmart store in Lufkin with the intent to manufacture methamphetamine.  During the investigation, it was determined that from August 2011 to April 2012, Helton purchased cold pills containing pseudoephedrine on seven separate occasions from a Lufkin Wal-Mart, once from a Nacogdoches, Texas CVS pharmacy and eight separate times from a Lufkin Walgreens pharmacy.  The average person attempting to correct sinus de-congestion problems is believed to purchase only one or two boxes of the product per year.  Helton and seven others were indicted on Aug. 15, 2012 and charged with federal drug trafficking violations.   

              This case was investigated by the FBI, Texas Department of Public Safety Criminal Investigations Division and the Lufkin Police Department and prosecuted by Assistant U.S. Attorney Randall L. Fluke.

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Four defendants face capital murder charges

BEAUMONT, Texas – Twelve Southeast Texas residents have been indicted and arrested in connection with a “white’s only” racketeering enterprise that engaged in methamphetamine distribution and murder in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

The four-count superseding indictment was returned by a federal grand jury on Mar. 7, 2013.  Seven of the charged defendants were already in custody and the remaining five were arrested on Mar. 8, 2013.  The indictment, which was unsealed today in the Eastern District of Texas, names Kenny Don Stanley, 25, of Vidor, Texas; Tanner Lynn Bourque, a/k/a “Two Shoes,” a/k/a “Hitman,” 33, of Port Arthur, Texas; Kristopher Leigh Guidry, a/k/a “Hollywood,” 28, of Vidor;  Vicki Stark-Fitts, 49, of Hull, Texas; Craig Pipps, a/k/a “Lone Wolf,” 40, of Vidor; Erica Nicole Parrott, 27, of Vidor; Ricky Allen Nichols, 54, of Vidor; Michael Taylor Word, 45, of Silsbee, Texas; Juanette Marie Cunningham, a/k/a “Netty,” 46, of Vidor; Mikell Allen Cunningham, a/k/a “Mikey,” 28, of Vidor; Cassi Diane Hetzel, 37, of Silsbee; and Mack Langston Warner, 33, of Silsbee.  The indictment alleges that six of the defendants, Stanley, Bourque, Guidry, Stark-Fitts, Pipps, and Mikell Cunningham, participated in the operation and management of the SWS gang.  The defendants are scheduled to make initial appearances before U.S. Magistrate Judge Zack Hawthorn today.  

According to the indictment, SWS is a race-based organization operating inside and outside of jails and prisons, primarily in Texas.  SWS was founded during the 1990s by inmates within the Texas Department of Criminal Justice.  SWS, which was founded as the “Stupid Woods,” is also known as “Solid Wood Soldiers” and “Separate White State.”  SWS protects its power, territory, and profits through intimidation and violence, including assaults, robbery, and murder.  SWS has a chain of command of president, vice-president, council, major, captain, lieutenant, sergeant, and soldier.  SWS members, prospects, and associates refer to the gang as the "wolf pack," “pack,” or "family." The indictment states that SWS has a written constitution and bylaws that outline the duties, responsibilities, and requirements associated with membership. Prospective members, called “prospects,” must be “white” and sponsored by another SWS member.  Prospects must serve a probationary period during which their conduct is observed by SWS members.  During this period, prospects study and learn the SWS constitution and by-laws and may be required to “work” for the enterprise.  “Work” means illegal activity.  Prospects are considered part of the SWS family and are therefore subject to the rules and orders of the enterprise, including violent beatings known as “disciplines.”  SWS leaders determine if and when a prospect is eligible for initiation into membership.  SWS initiation requires a “blood in, blood out” commitment.  That is, prospects are subject to a violent beating in order to become a “member.”  Members or prospects that leave SWS are likewise subject to a violent beating.

According to the indictment, SWS members, prospects, and associates are required to further SWS goals through criminal activity.  Members and prospects are therefore required to commit that they will follow without question any order of SWS leadership.  In particular, members and prospects are required, when ordered, to perform violent acts without hesitation.  Maintaining power and avoiding loss of stature motivates SWS members, prospects, and associates to commit violent acts against individuals and groups believed to be disrespectful or detrimental to SWS. 

The indictment charges four of the defendants, Stanley, Bourque, Guidry, and Stark-Fitts with murder in aid of racketeering.  According to the indictment, on Mar. 14, 2011, the four used a firearm to murder James Lee Sedtal, a/k/a “Lil Bit,” in Liberty County, Texas.  The indictment alleges that the four murdered Sedtal on behalf of SWS, after Sedtal assaulted Word, an Aryan Brotherhood of Texas (ABT) associate.  The indictment states that ABT was poised to retaliate against SWS, and Bourque, Guidry, Stanley, and Stark-Fitts sought to maintain and increase their position within SWS by murdering Sedtal.  If convicted of murder as charged, the defendants each face either life imprisonment or the death penalty.  The indictment charges all of the defendants with conspiring to distribute methamphetamine between Sep. 2010 and Mar. 2011.  If convicted of the conspiracy charge, the defendants each face from 10 years to life in federal prison. 

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

The case is being investigated by the ATF, U.S. Marshals Service, U.S. Secret Service, DEA, FBI, U.S. Bureau of Prisons, Texas Rangers, Department of Public Safety CID, Texas Department of Criminal Justice OIG, Orange County Sheriff’s Office, Hardin County Sheriff’s Office, Jasper County Sheriff’s Office, Tyler County Sheriff’s Office, Jefferson County Sheriff’s Office, the Beaumont Police Department, and the Silsbee Police Department and is being 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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Search warrant leads to a federal conviction

TYLER, Texas – A 36 year old Wills Point man has pleaded guilty to possessing a short barrel shotgun announced U.S. Attorney John M. Bales today.

Michael Jack Callaway pleaded guilty today in U.S. Magistrate Judith Guthrie’s court to the felony offense of possessing an unregistered short barrel shotgun. A federal grand jury indicted Callaway for the offense on November 7, 2012. Callaway admitted that on August 22, 2012, members of the Van Zandt County Drug Task Force found a short barrel shotgun among  numerous rifles, pistols, and shotguns, as well as hundreds of rounds of ammunition, during the execution of a search warrant at his residence in Wills Point, Texas.  Callaway must forfeit the seized weapons and ammunition to the United States Attorney’s Office.  

Callaway is facing up to ten years in prison and a $250,000.00 fine.  A sentencing hearing date has not been set. 

This case was investigated by the Van Zandt County Drug Task Force and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Tyler Office and prosecuted by Assistant U.S. Attorney Jim Noble.

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        TYLER, Texas – A 39-year-old Fort Worth, Texas man has been sentenced to 51 months in federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today. 

Ray Lee Ransom pleaded guilty on April 20, 2012 to conspiracy to possess with intent to distribute hydrocodone, alprazolam and promethazine with codeine. Ransom was sentenced to a total of 51 months in federal prison today by U.S. District Judge Michael H. Schneider.

            According to information presented in court, from May, 2009 through 2011, Ransom conspired with others to purchase and distribute hydrocodone, alprazolam and promethazine with codeine.  Ransom and his co-conspirators purchased these controlled substances at numerous pharmacies in cities located throughout the Eastern District of Texas and in other locations, utilizing fraudulent prescriptions.  A federal grand jury returned an indictment on November 2, 2011, charging 5 individuals, including Ransom, with conspiracy to possess with the intent to distribute the drugs.  All of the co-defendants have been sentenced.     

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

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Traffic stop leads to federal conviction

TYLER, Texas – A 34 year old Fairfield man has pleaded guilty to being a felon in possession of a firearm announced U.S. Attorney John M. Bales today.

Victor Vasquez pleaded guilty today in U.S. Magistrate Judith Guthrie’s court to charges of being a felon in possession of a firearm. A federal grand jury indicted Vasquez for the offense on October 3, 2012. Vasquez admitted that on April 4, 2012 he was stopped by a police officer in Rusk, Texas for speeding.  During the course of the stop, the officer determined that Vasquez had been drinking alcoholic beverages and Vasquez was arrested for DWI.   Following the arrest, the officer inventoried Vasquez’s vehicle and found a 7.62x39 mm, semi-automatic rifle and ammunition for the rifle.  The next day, a Rusk detective determined that Vasquez had a prior felony conviction in Kansas for Attempted Aggravated Burglary.  A search warrant for Vasquez’s vehicle led to the discovery of a short-barrel, 12 gauge shotgun and a dozen 12 gauge shotgun shells under the back seat.  Vasquez must forfeit the seized weapons and ammunition.  

Vasquez is facing up to ten years in prison and a $250,000.00 fine.  A sentencing date has not been scheduled.

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

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           TYLER, Texas – A 41-year-old Lindale, Texas man has been sentenced to federal prison for drug trafficking crimes in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

            Christopher Florence pleaded guilty on Sep. 11, 2012, to possession with intent to distribute cocaine and was sentenced to 38 months in federal prison today by U.S. District Judge Leonard Davis.

           According to information presented in court, on Jan. 27, 2011, law enforcement officers executed a search warrant at a residence on County road 141 in Overton, Rusk County, Texas during which Florence was observed attempting to discard a semi-automatic pistol, $1,757 in cash and approximately 6.16 grams of cocaine base in the yard of the residence.  Florence admitted to possessing the cocaine with the intent to distribute it to others in the area.  Florence was indicted by a federal grand jury on Sep. 15, 2011. 

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

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             MARSHALL, Texas – A 52-year-old Hawkins, Texas man, formerly of Louisiana, has been sentenced to federal prison for bank robbery in the Eastern District of Texas, announced U.S. Attorney John M. Bales. 
             
Robin Marion Allen pleaded guilty on Sep. 11, 2012, to bank robbery and was sentenced to 160 months in federal prison today by U.S. District Judge Rodney Gilstrap.

According to information presented in court, on June 25, 2012, Allen borrowed a car and drove to the Wells Fargo Bank on East Main Street in Atlanta, Texas.  Allen approached a bank teller and gave the teller a hand-written note with instructions to fill a black bag with cash.  The teller placed $1,944 in cash in the bag and returned it to Allen.  Allen was arrested on June 27, 2012 in Atlanta, Texas.  Allen was indicted by a federal grand jury on July 11, 2012 and charged with bank robbery.   

This case was investigated by FBI and the Atlanta Police Department and prosecuted by Assistant U.S. Attorney Allen Hurst.

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              TYLER, Texas – A Tyler, Texas man and woman have pleaded guilty to federal drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

Juan Dedias Herrera, 29, and Lamanda McCoy, 34, both pleaded guilty to the distribution of more than 50 grams of pure methamphetamine today before U.S. Magistrate Judge Judith K. Guthrie.

                According to information presented in court, on Oct. 31, 2011, Herrera agreed to acquire and distribute methamphetamine with another person.  McCoy admitted to being in possession of methamphetamine on Apr.20, 2011. 

                A federal grand jury returned an indictment on Feb. 1, 2012 charging Herrera and McCoy with federal drug trafficking crimes. 

Herrera faces a minimum of 10 years and up to life in federal prison.  McCoy faces up to 20 years in federal prison at sentencing.  Sentencing dates have not been set. 

                This case is being investigated by the Drug Enforcement Administration and the Smith County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Bill Baldwin.

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                BEAUMONT, Texas – A 26-year-old Nacogdoches, 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. 

               Rodney Stevenson pleaded guilty on Aug. 29, 2012, to conspiracy to distribute and possess with intent to distribute 5 kilograms or more of crack cocaine and was sentenced to 120 months in federal prison today by U.S. District Judge Ron Clark.

                According to information presented in court, from 2008 to June 20, 2012, Donald Dixon, a.k.a. “Black”, Cedrick Fowler, a.k.a. “C” and “C-Murder”, Kerry Wayne Griffin, a.k.a. “Big Boy”, Omar Paunetto, Jose Angel Bustillos, Michael John Pereira, Rodney Stevenson, a.k.a. “Arod”, Darius Thorn, a.k.a. “Bs” and “Beez”, Tremaine Smith and Anthony Fowler conspired to traffic cocaine and crack cocaine throughout East Texas. 

                Stevenson's role in the organization was to assist Cedrick Fowler in acquisition of cocaine and the distribution of cocaine base.  Stevenson traveled with Cedrick Fowler on one or more occasions to purchase cocaine from Donald Dixon.  On May 25, 2012, investigators executed an arrest warrant at Stevenson’s apartment and detained him after he attempted to flee. They found C. Fowler in a second bedroom of the apartment and Stevenson’s girlfriend in his bedroom. Underneath a pillow on Stevenson’s bed, agents recovered a FEG, 9mm, Model P9R, semiautomatic pistol. They also found 4 pounds of marijuana in the bedroom closet and a small amount of cocaine in a kitchen cabinet. Stevenson was responsible for distributing over 5 kilograms of cocaine.

                On June 20, 2012, a federal grand jury returned a 10-count indictment charging 10 defendants, including Stevenson, 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, the Nacogdoches Police Department, and the Nacogdoches County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Baylor Wortham.

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            MARSHALL, Texas – A 45-year-old Jefferson, 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. 

Tracy Renee Hampton pleaded guilty on Mar. 27, 2012, to possession of pseudoephedrine with intent to manufacture methamphetamine and was sentenced to 84 months in federal prison today by U.S. District Judge Rodney Gilstrap.

            According to information presented in court, Hampton was involved in a conspiracy with others to purchase cold pills containing pseudoephedrine at multiple pharmacies across East Texas.  

Hampton 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 and the Harrison County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Allen Hurst.

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                BEAUMONT, Texas – A 39-year-old Nederland, 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. 

              George Alexander Faulk pleaded guilty on Oct. 11, 2012, to possession with intent to distribute over 5 grams of methamphetamine and was sentenced to 100 months in federal prison today by U.S. District Judge Thad Heartfield.

                According to information presented in court, on June 20, 2011, Faulk sold an “8-ball” (3.5 grams) of methamphetamine to another person for $300 at Faulk’s residence.  On Jan. 18, 2012, officers executed an arrest warrant for Faulk at his residence for delivery of methamphetamine. Officers located Faulk and he was arrested without incident. Officers asked if he was in possession of any methamphetamine or if any methamphetamine was inside his residence. Faulk advised methamphetamine was located in a safe in his kitchen, and he provided the combination to officers. Inside the safe, officers located a clear bag containing 20.83 grams of 97% pure d-methamphetamine hydrochloride. Nearby, a black nylon bag contained 14 individually packaged bags containing a total of 13.94 grams of 94% pure d-methamphetamine hydrochloride. Many of the individually packaged bags were labeled with “G” or “1/16”, which indicates 1 gram or 1/16 of an ounce (1.75 grams). Digital scales, hypodermic syringes, a metal spoon, and several empty re-sealable bags were also located.

              Faulk was indicted by a federal grand jury on May 16, 2012 and charged with federal drug trafficking violations 

              This case was investigated by the Drug Enforcement Administration and the Jefferson County Narcotics Task Force and prosecuted by Assistant U.S. Attorney Baylor Wortham.

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

              Michael John Pereira pleaded guilty on Oct. 3, 2012, to possession of a firearm during a drug trafficking crime and was sentenced to 60 months in federal prison today by U.S. District Judge Ron Clark.

                According to information presented in court, from 2008 to June 20, 2012, Donald Dixon (Dixon), a.k.a. “Black”, Cedrick Fowler, a.k.a. “C” and “C-Murder” (C. Fowler), Kerry Wayne Griffin (Griffin), a.k.a. “Big Boy”, Omar Paunetto, Jose Angel Bustillos, Michael John Pereira, Rodney Stevenson (Stevenson), a.k.a. “Arod”, Darius Thorn (Thorn), a.k.a. “Bs” and “Beez”, Tremaine Smith (Smith) and Anthony Fowler (A. Fowler) conspired to traffic cocaine and "crack" cocaine base throughout East Texas. 

                Pereira's role in the organization was to work at the direction of Dixon.  Pereira’s job was to provide protection for Dixon when drug transactions were occurring.  On April 30, 2012, agents conducted surveillance of a controlled purchase of 2 kilograms of cocaine.  During the course of the investigation, officers conducted a stop on Pereira's vehicle and found him in possession of multiple firearms and ammunition, including:

-A Sig Sauer, Sig 516, carbine assault rifle, serial number 20A009905; -A S&W, M&P, assault rifle, serial number 93683; -A Colt, Anaconda, .44 caliber gun, serial number MM31387; -A S&W, SW9VE pistol, serial number DUY4897; -A Two S&W magazines for a 9mm firearm; two Aris magazines with a 30-round capacity; -A 29-round Glock magazine; -A .45 caliber Clock magazine; -A Two 100-round capacity drum magazines for an assault rifle; and
-Assorted ammunition.

              On June 20, 2012, a federal grand jury returned a 10-count indictment charging 10 defendants, including Pereira, with multiple 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, the Nacogdoches Police Department, and the Nacogdoches County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Baylor Wortham.

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         TYLER, Texas – A 39-year-old Longview, Texas man has been sentenced to 40 years in federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today. 

Spencer Garod Elam was convicted by a jury on Oct. 3, 2012, of conspiracy to possess with intent to distribute hydrocodone, two counts of possession of a firearm during a drug trafficking crime, felon in possession of a firearm, and use of a communications facility to facilitate a felony.  Elam was sentenced to a total of 480 months in federal prison today by U.S. District Judge Leonard E. Davis.

            According to information presented in court, Elam was arrested on May 16, 2011 following a lengthy investigation into a drug trafficking enterprise in Gregg County, Texas.  A federal grand jury returned an indictment on May 11, 2011, charging 13 Longview residents, including Elam, with multiple drug and gun violations.    

This case was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, tobacco, Firearms, and Explosives, the Gregg County C.O.D.E. Unit, the Gregg County Sheriff’s Office and the Longview Police Department and prosecuted by Assistant U.S. Attorney Richard L. Moore.

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               TYLER, Texas – A 26-year-old Ainsworth, Nebraska man has been sentenced for misapplying funds owed to the Farm Services Agency in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

               Michael Kord Chapman pleaded guilty on Aug. 22, 2012 to conversion of mortgaged property and was sentenced to five years probation today by U.S. District Judge Leonard Davis.  Chapman was also ordered to pay restitution of $83,622.42 to the U.S. Department of Agriculture Farm Services Agency.

                According to information presented in court, between Feb. 18, 2011 and Apr. 7, 2011, Chapman sold approximately 158 head of cattle valued at over $83,400.00 that had been pledged as collateral on a loan from the Farm Services Agency.  Instead of paying the loan, Chapman kept the proceeds of the sale for himself and converted them to his own use. 

            This case was investigated by the U.S. Department of Agriculture, Office of the Inspector General, Office of Investigations, and prosecuted by Assistant U.S. Attorney Jim Noble.

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          TYLER, Texas – A 37-year-old Brawley, CA, 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. 

Hercel Vernoy Shultz, III, pleaded guilty on Sep. 5, 2012, to possession with intent to distribute methamphetamine and was sentenced to 120 months in federal prison today by U.S. District Judge Leonard Davis.

            According to information presented in court, on Feb. 24, 2012, Shultz was arrested after he was found in possession of over 400 grams of methamphetamine which was in his luggage at the Amtrak train station in Longview, Texas.  Before his arrest, Shultz had been traveling from Yuma, Arizona to Longview.

Shultz was indicted by a federal grand jury on Mar. 8, 2012 and charged with federal drug trafficking violations 

This case was investigated by the Drug Enforcement Administration, DEA Task Force, Upshur County Sheriff’s Office, Smith County Precinct 5 Constable’s Office and the Longview Police Department.  This case was prosecuted by Assistant U.S. Attorney Allen Hurst.

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Chinese national attempted to smuggle ivory falsely labeled as “wood carvings”

SHERMAN, Texas – A 44-year-old Plano, Texas man has pleaded guilty to negligently attempting to smuggle ivory carvings from the United States, announced U.S. Attorney John M. Bales today.

Shichen Wang pleaded guilty to the misdemeanor offense of negligent attempted transportation of wildlife sold in violation of law today before U.S. Magistrate Judge Amos L. Mazzant.

                According to information presented in court, on April 19, 2011, Wang attempted to ship two elephant ivory carvings, daffodil flowers and a cylinder brush pot, in two separate packages that were addressed to two different locations in the Republic of China.  Both of the packages were falsely labeled to describe their contents as “wood carvings” which is a violation of federal laws that protect specified species of wildlife.  The packages were intercepted by wildlife inspectors who were inspecting International Express Mail packages that were consigned for export from the United States.  An information was filed on Nov. 29, 2012, charging Wang with federal violations.

Wang faces up to one year in federal prison and a $100,000.00 fine. 

This case was investigated by the U.S. Fish and Wildlife Service, Office of Law Enforcement, Fort Worth, Texas and Rosemont, Illinois Office and U.S. Customs and Border Protection, Rosemont, Illinois Office and prosecuted by Assistant U.S. Attorney Jim Noble.

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

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PLANO, Texas – Three more executives from Provident Royalties, Inc. have pleaded guilty in connection with an investment fraud scheme in the Eastern District of Texas, announced U.S. Attorney John M. Bales. 

Brendan W. Coughlin, 46, of Dallas, Henry D. Harrison, 47, of Dallas, and W. Mark Miller, 59, of Plano, Texas, each acknowledged their roles in the multi-million dollar oil and gas investment fraud scheme.

According to documents filed in court, Coughlin and Harrison founded and controlled Provident, and Miller served as its Chief Financial Officer and later, as President.  Between Jan. 1, 2009, and Feb. 3, 2009, Coughlin and Harrison conspired with others to defraud investors throughout the United States of $2.3 million.  Specifically, Coughlin, Harrison, and other individuals made materially false representations and failed to disclose material facts to their investors in order to induce the investors into providing payments to Provident.  Among these false representations were statements that funds invested would be used only for the project for which those funds were raised; among the material facts omitted from disclosure was that funds from investors in later oil and gas projects were being used to pay individuals who invested in earlier oil and projects.  Miller knew that the crime had occurred but failed to report it to the authorities and instead took affirmative action – authorizing the lulling payments to investors – to conceal the crime from discovery.

Coughlin, Harrison, and Miller join two other Provident principals who have been held accountable for their crimes. Joseph Blimline, 35, pleaded guilty in connection with the scheme and was sentenced to 20 years in federal prison.  Provident CEO/founder Paul R. Melbye, 47, pleaded guilty in connection with the scheme and faces up to five years in federal prison.

Coughlin and Harrison face up to five years in federal prison for their roles in the conspiracy.  Miller faces up to three years in federal prison.

           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 and prosecuted by Assistant U.S. Attorney Shamoil T. Shipchandler. ####

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TYLER, Texas – A 23-year-old Longview, Texas, woman has been sentenced to federal prison for bank fraud violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

Amanda Henderson pleaded guilty on Nov. 6, 2012 to conspiracy to commit bank fraud and was sentenced to 33 months in federal prison today by U.S. District Judge Michael H. Schneider.  Henderson must also pay restitution in the amount of $14,659.25.

                According to information presented in court, beginning in May 2011, Henderson and co-defendant, Mark Alan McCullars, created counterfeit checks which appeared to be payroll checks issued by businesses in East Texas.  They also created fraudulent drivers’ licenses so that they could cash the counterfeit checks at check-cashing businesses.  McCullars and Henderson cashed over 100 fraudulent checks resulting in a loss of $14,659.25 to check cashing businesses in East Texas.  They were indicted by a federal grand jury on May 11, 2012.  McCullars was sentenced to 51 months in federal prison on Feb. 6, 2013.

              This case was investigated by the United States Secret Service and prosecuted by Assistant U.S. Attorney Mary Ann Cozby.

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

                Kym David Pearce pleaded guilty to possession of a stolen firearm today before U.S. Magistrate Judge Judith K. Guthrie.

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 

Pearce faces up to 10 years in federal prison.  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 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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GARLAND, Texas – The dismantling of a major marijuana trafficking organization has resulted in the distribution of significant assets to five Metroplex law enforcement agencies in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

            In October 2010, law enforcement agencies became aware of a drug trafficking organization that was responsible for moving large amounts of marijuana and cash between the Dallas, Texas area and various points in Arizona.  On Dec. 4, 2010, members of the drug trafficking organization were observed removing an air conditioning unit from a horse trailer to reveal a hidden compartment used to hide currency, marijuana and firearms.  Law enforcement officers moved in and arrested members of the drug trafficking organization.  They also recovered two rifles and a firearm on the front seat of a vehicle.  Additional weapons were seized at the location along with $685,825.00 in cash.  Agents then executed search warrants at other residences and a storage unit.  At the storage unit, agents seized an additional $257,520.00, $206,400.00, and $309,880.00 for a total currency seizure of $1,722,446.00. 

The Texas Department of Public Safety led the investigation with assistance from the Wylie Police Department, the Collin County Sheriff’s Office, the Dallas County Sheriff’s Office, and the Dallas County District Attorney’s Office.  The Bureau of Alcohol, Tobacco, Firearms, and Explosives provided follow-up investigation after the arrest and seizure of evidence.  In total, nine individuals were convicted of federal drug trafficking violations.

"This investigation is a great example of the successful partnership between local, state and federal law enforcement agencies in Texas," said DPS Deputy Director David Baker. "Thanks to the efforts by all involved, these criminals are now off our streets, and our communities are safer today."
The following agencies received equitable sharing checks as a result of this case:

Texas Department of Public Safety                $1,119,360.20             (65%)
Wylie Police Department                                $86,104.63                  (5%)
Dallas County Sheriff’s Office                       $86,104.63                  (5%)
Collin County Sheriff’s Office                       $68,883.70                  (4%)
Dallas County District Attorney’s Office      $17,220.93                  (1%)   

The remaining 20% of the forfeiture money will be deposited into the Asset Forfeiture Fund.           
This case was prosecuted by Assistant U. S. Attorney Ernest Gonzalez.

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TYLER, Texas – A 42-year-old Mineola, Texas woman has pleaded guilty to federal drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

Jennifer Northcutt pleaded guilty to possession with intent to distribute methamphetamine on Feb. 5, 2013, before U.S. Magistrate Judge Judith K. Guthrie.

                According to information presented in court, on Aug. 21, 2010, Northcutt was found in possessio9n of methamphetamine which she intended to distribute to others.  She admitted to possessing approximately 17 grams of methamphetamine and to being in possession of a firearm while distributing methamphetamine.

                 A federal indictment was returned on Nov. 7, 2012, charging Northcutt and two co-defendants with federal drug crimes. 

Northcutt faces up to 40 years in federal prison at sentencing.  A sentencing date has not been set. 

                This case is being investigated by the Drug Enforcement Administration and the Mineola Police Department and prosecuted by Assistant U.S. Attorney Bill Baldwin. ####

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TYLER, Texas – A 45-year-old Marshall, Texas, man has been sentenced to federal prison for bank fraud violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

Mark Alan McCullars pleaded guilty on Nov. 6, 2012 to conspiracy to commit bank fraud and was sentenced to 51 months in federal prison today by U.S. District Judge Michael H. Schneider.

                According to information presented in court, beginning in May 2011, McCullars and co-defendant, Amanda Henderson, created counterfeit checks which appeared to be payroll checks from businesses in East Texas.  They also created fraudulent drivers’ licenses so that they could cash the counterfeit checks at check-cashing businesses.  McCullars and Henderson cashed over 100 fraudulent checks resulting in over $55,000 in loss to check cashing businesses in East Texas.  They were indicted by a federal grand jury on May 11, 2012.  Henderson is awaiting sentencing.

              This case was investigated by the United States Secret Service and prosecuted by Assistant U.S. Attorney Mary Ann Cozby.

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TYLER, Texas – A 26-year-old Longview, Texas man has pleaded guilty to federal drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

Jason Ray Ragan pleaded guilty to possession with intent to distribute methamphetamine today before U.S. Magistrate Judge John D. Love.

            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. 

Ragan faces up to 40 years 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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TYLER, Texas - U.S. Attorney John M. Bales announced today that 11 individuals are in custody following a lengthy investigation into drug trafficking in the Eastern District of Texas.

                On Feb. 5, 2013, a combined task force of federal, state and local law enforcement agencies began arresting individuals named in a federal indictment returned by a grand jury on Jan. 23, 2013.  The indictment charges the following individuals with conspiracy to possess with intent to distribute and distribution of more than 50 grams of methamphetamine:

Javier Colmenero Loyola, 46
James Franklin Carpenter, 59
Bobby Joe Whiteley, 42
Brandon Wesley Kimble, 28
Christopher Trent O'Neal, 27
Toby Hill Coslett, aka "Crazy," 41
Jeffrey Rainey, aka "Pee Wee," 49
Stile Parker Denton, 48
Morris Edward Stone, 43
James Adrien Craig, aka "Ace," 37
Christine Marie Hamer, 35

The defendants will appear today before U.S. Magistrate Judge John D. Love.  If convicted, the defendants each face a minimum of 10 years and up to life in federal prison.

This indictment is the result of a joint investigation by the Tyler office of the Federal Bureau of Investigation, the Cherokee County Sheriff’s Office, the Jacksonville Police Department and members of the Safe Streets Task Force.  Numerous additional agencies participated in today’s arrests including DEA, ATF, HSI, the US Marshals Service, the Texas Department of Public Safety (DPS), the Texas Rangers Special Operations Group, and the Anderson County Sheriff’s Department.  This case is being prosecuted by Assistant U.S. Attorney Richard Moore.

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

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SHERMAN, Texas — A 46-year-old Maypearl, Texas podiatrist has been sentenced to federal prison for health care and income tax fraud in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

                Shannon Gallentine pleaded guilty on May 10, 2012, to one count of health care fraud and one count of failing to file an income tax return and was sentenced to 24 months in federal prison on Jan. 31, 2013, by U.S. District Judge Thad Heartfield.  Gallentine was also ordered to pay health care fraud restitution of $391,628.08 and $407,942.47 to the Internal Revenue Service.  Of the restitution, $254,377.41 will be paid to Medicare, $110,622.59 to Medicaid, and $26,628.08 to Blue Cross Blue Shield.

            According to information presented in court, from January 2004 through May 2007, Gallentine, a podiatrist, owned and operated Ambulatory Foot Care in Lancaster, Texas.  During this time, Gallentine submitted false and fraudulent claims to Medicare seeking reimbursement for procedures which he did not perform.  As a result of these false claims, Gallentine received in excess of $365,000.00 to which he was not entitled.   Additionally, Gallentine willfully failed to file federal income tax returns for calendar years 2004 and 2005.  Gallentine was indicted by a federal grand jury on Mar. 9, 2011, and charged with federal violations.

            Gallentine will report to the U.S. Marshals Service on Mar. 18, 2013 to be transported to federal prison.

            This case was investigated by the FBI, U.S. Department of Health and Human Services - Office of the Inspector General (HHS-OIG), IRS, DEA, Texas Office of the Attorney General - Medicaid Fraud Control Unit (OAG-MFCU), and Blue Cross/Blue Shield of Texas and was prosecuted by Assistant U.S. Attorney James Peacock.

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TYLER, Texas – A 41-year-old Tyler, Texas man was sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

Bonifacio Nunez-Romero was found guilty by a jury on Aug. 15, 2012, of conspiracy to possess with intent to distribute and distribution of methamphetamine and was sentenced to 240 months in federal prison today by U.S. District Judge Michael H. Schneider. 

            According to information presented in court, up until September 2011, Nunez-Romero conspired with another person to acquire and distribute methamphetamine in the Tyler, Texas area.  Evidence presented at trial showed Nunez-Romero was distributing methamphetamine manufactured in Mexico and also selling heroin.  He was also found in possession of firearms, a military flak jacket and body armor.  Nunez-Romero was indicted by a federal grand jury on Aug. 1, 2012 and charged 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 the Smith County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Bill Baldwin.

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BEAUMONT, Texas – A 30-year-old Nacogdoches, 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. 

Cedrick Fowler pleaded guilty on Aug. 28, 2012, to conspiracy to possess with intent to distribute 5 kilograms or more of crack cocaine and was sentenced to 245 months in federal prison on Jan. 29, 2013 by U.S. District Judge Ron Clark.

 Tremaine Smith, 27, of Nacogdoches, Texas, pleaded guilty on Sep. 5, 2012, to

                According to information presented in court, from 2008 to June 20, 2012, Donald Dixon, a.k.a. “Black”, Cedrick Fowler, a.k.a. “C” and “C-Murder”, Kerry Wayne Griffin, a.k.a. “Big Boy”, Omar Paunetto, Jose Angel Bustillos, Michael John Pereira, Rodney Stevenson, a.k.a. “Arod”, Darius Thorn, a.k.a. “Bs” and “Beez”, Tremaine Smith and Anthony Fowler conspired to traffic cocaine and crack cocaine throughout East Texas. 

                On June 20, 2012, a federal grand jury returned a 10-count indictment charging 10 defendants, including Fowler, 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, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Nacogdoches Police Department, and the Nacogdoches County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Baylor Wortham.

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TYLER, Texas – A 38-year-old El Salvadorian man illegally living in Tyler, Texas, was sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

Francisco Antonio Soriano pleaded guilty on Sep. 21, 2012, to conspiracy to possess with intent to distribute methamphetamine and was sentenced to 120 months in federal prison today by U.S. District Judge Michael H. Schneider.  Soriano will be deported following the completion of his prison term.

                According to information presented in court, beginning on Dec. 14, 2011, Soriano conspired with others to acquire and distribute methamphetamine in the Eastern District of Texas.  Soriano admitted he was responsible for the distribution of more than 500 grams of pure methamphetamine. 

                Soriano, Jose Lopez, and Jorge Perez Sanchez were indicted by a federal grand jury on Jan. 11, 2012 and charged with drug trafficking violations.  Lopez was sentenced to 168 months in federal prison on Oct. 1, 2012.  Sanchez was sentenced to 30 months in federal prison on Oct. 1, 2012.

                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, the Tyler Police Department, and the Smith County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Bill Baldwin. ####

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TYLER, Texas – A48-year-old Shreveport, LA man has been sentenced for federal drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

Jay S. Gaines pleaded guilty on Sep. 4, 2012, to possession of pseudoephedrine with intent to manufacture methamphetamine and was sentenced to 57 months in federal prison today by U.S. District Judge Michael H. Schneider.

            According to information presented in court, on Apr. 4, 2011, Gaines purchased cold pills containing pseudoephedrine at a Walmart store in Longview, Texas with the intent to manufacture methamphetamine.  Within an hour, Gaines also made two other purchases of cold pills at another Walmart store and a Walgreens store in Longview. 

            Gaines’ co-defendants have all been sentenced.  Jimmie Langston, Jr., was sentenced on Oct. 4, 2012 to 120 months in federal prison.  Donnie Regis was sentenced to 75 months on June 21, 2012.  Christopher Conley received a sentence of 100 months on Jan. 17, 2012.  Connie Parker was sentenced to 70 months on Feb. 8, 2012.  Stacy Campbell was sentenced to 75 months on June 1, 2012.  Keith Kates received a 70 month sentence on June 21, 2012.  Penny Mooney was sentenced to 57 months in federal prison on Feb. 8, 2012. 

            This case was investigated by the Texas Department of Public Safety Criminal Investigations Division and the Panola County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Mary Ann Cozby. ####

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TYLER, Texas – A35-year-old Zwolle, LA man has been sentenced to federal prison for drug trafficking charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

                Kinte Varness Garner pleaded guilty on Aug. 21, 2012, to conspiracy to possess with intent to distribute and distribution of methamphetamine and was sentenced to 262 months in federal prison today by U.S. District Judge Michael H. Schneider.  Garner was also ordered to submit to forfeiture of $5,000.00.

According to information presented in court, up until September 2011, Garner conspired with another person to acquire and distribute more than 500 grams of methamphetamine throughout the Tyler, Texas area.  A federal grand jury returned an indictment on Oct. 5, 2011, charging Garner with federal violations.

Garner’s co-defendant, Camera Neal Holden, Jr., was sentenced to 60 months in federal prison on Sep. 11, 2012.

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

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

Benjamin Rojas pleaded guilty on Oct. 9, 2012, to conspiracy to commit identity theft and was sentenced to 21 months in federal prison today by U.S. District Judge Michael H. Schneider.  Rojas was also ordered to pay restitution in the amount of $20,293.93.

            According to information presented in court, from January to May 2012, Rojas conspired with others to possess and use false identification documents and means of identification of others unlawfully.  The scheme involved stealing mail from mailboxes in East Texas and using the information from the stolen mail to produce false Texas driver licenses, which appeared to be actual Texas temporary driver licenses.  The fictitious driver licenses were used for identification when passing stolen checks, as well as counterfeit and forged checks, at various businesses in East Texas. 

            Co-defendant, Robin Watkins is scheduled to be sentenced on Mar. 7, 2013.

            This case was investigated by the U.S. Secret Service, the Federal Bureau of Investigation, the U.S. Postal Inspection Service, the Smith County Sheriff’s Office, the Tyler Police Department, the Tyler Police Department, and the Longview Police Department and prosecuted by Assistant U.S. Attorney Nathaniel C. Kummerfeld.

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

Shiraz Sherali Odhwani pleaded guilty on Sep. 9, 2011, to conspiracy to traffic in counterfeit goods and was sentenced to 36 months in federal prison by United States District Judge Michael H. Schneider.  Odhwani was also ordered to pay restitution in the amount of $950,000.

                According to information presented in court, Odhwani owns and operates a company known as Turtle Wireless, a wholesale outlet and retail point of sale for cellular telephones and wireless device accessories located in Dallas, Texas.  In or about 2008, Turtle Wireless began selling counterfeit cellular telephone accessories purchased from suppliers in China.  Through Turtle Wireless, Odhwani then sold the counterfeit products to retailers within the Eastern District of Texas and elsewhere.  In connection with this case, law enforcement officials seized more than 130,000 counterfeit items from Odhwani’sstore and leased storage space.  The infringement amount of that counterfeit merchandise was estimated at between $2.5 million and $7 million.  Odhwani and three others were indicted by a federal grand jury in May 2011.

This case is an example of the type of efforts being undertaken by the Department of Justice Task Force on Intellectual Property (IP Task Force).  Attorney General Eric Holder created the IP Task Force to combat the growing number of domestic and international intellectual property crimes, protect the health and safety of American consumers, and safeguard the nation’s economic security against those who seek to profit illegally from American creativity, innovation and hard work.  The IP Task Force seeks to strengthen intellectual property rights protection through heightened criminal and civil enforcement, greater coordination among federal, state and local law enforcement partners, and increased focus on international enforcement efforts, including reinforcing relationships with key foreign partners and U.S. industry leaders. To learn more about the IP Task Force, go to www.justice.gov/dag/iptaskforce.

                The case was investigated by the Federal Bureau of Investigation, the Dallas County Sheriff’s Department, the Longview Police Department, the Baytown Police Department, and the Austin Police Department.  The matter was prosecuted by Assistant U.S. Attorney Frank Coan.

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BEAUMONT, Texas – A 32-year-old Nederland, Texas man has been sentenced to federal prison for robbing a bank in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

Christopher Levi Woodcock pleaded guilty on Sep. 27, 2012 to bank robbery and was sentenced to 43 months in federal prison on Jan. 24, 2013 by U.S. District Judge Ron Clark.  Woodcock was also ordered to pay restitution in the amount of $1,971.00.

            According to information presented in court, on Jan. 13, 2012, Woodcock entered Community Bank at 2008 Hwy 365 in Nederland and presented a note demanding money from a teller.  Fingerprint analysis of the demand note and community tipsters led to the arrest of Woodcock. 

            This case was investigated by the FBI and the Nederland Police Department and prosecuted by Assistant U.S. Attorney John Craft. ####

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

                Cloyd Ray Knight, III, 57, of Arlington, Texas, was charged with making and passing counterfeit $100 bills.  If convicted, he faces up to 20 years in federal prison.  According to the indictment, in December 2012, Knight is alleged to have forged $100 bills which he used at various retail stores across East Texas.  This case is being investigated by the U.S. Secret Service and prosecuted by Assistant U.S. Attorney Gregg Marchessault.

                Pastor Sanchez-Ortuno, 38, was indicted for being present in the United States after having been previously deported.  If convicted, he faces up to 10 years in federal prison followed by deportation.  This case is being investigated by HSI-ICE and prosecuted by Assistant U.S. Attorney Gregg Marchessault.

                Pedro Gallegos-Perez, 31, a Mexican national, was indicted for being present in the United States after having been previously deported.  If convicted, he faces up to 10 years in federal prison followed by deportation.  This case is being investigated by 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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BEAUMONT, Texas – A 57-year-old Trinity, Texas man has been sentenced to federal prison for failing to register as a sex offender in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
 
Clarence Robert Ward pleaded guilty on June 12, 2012, to failure to register as a sex offender and was sentenced to 24 months in federal prison today by U.S. District Judge Thad Heartfield.

According to information presented in court, Ward was convicted on indecency with a minor in Polk County, Iowa in 1998.  As a result of this conviction, Ward is required to register under the Sex Offender Registration and Notification Act.  In March 2010, Ward moved to Huntsville, Texas and then in 2011, he moved from Huntsville to Trinity, Texas.  Ward failed to update his sex offender registration with the State of Iowa or to initiate registration with the State of Texas.
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 ICE/HSI and prosecuted by Assistant U.S. Attorney Christopher T. Tortorice