Northern District of Texas

A Denver man was sentenced yesterday 16 months in federal prison for defrauding a Wichita Falls oil and gas company, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.

Duquesne Energy Services owner Daren Scot Elliott, 55, pleaded guilty to wire fraud in April 2021. He was sentenced Tuesday by U.S. District Judge Mark Pittman, who also ordered the defendant to pay $32,000 in restitution and $20,000 in fines.

According to plea papers, Mr. Elliott admits that he offered to sell a 30,000 gallon propane tank to Gas Corporation of America (G.C.A.), a buyer and seller of oil field equipment located in Wichita Falls. He intimated that he owned the tank, when in fact it was owned by another company, Sampson Resources.

After Mr. Elliott promised to deliver the tank within a week of purchase, a representative of G.C.A. wired $32,000 to Mr. Elliott’s bank account. He never delivered the tank.

Ben Wilson, the owner of G.C.A., testified at Mr. Elliott’s sentencing that the fraud was significant and negatively impacted his business and business’s reputation.

The Federal Bureau of Investigation’s Dallas Field Office, Wichita Falls Resident Agency conducted the investigation. Assistant U.S. Attorney Mary Walters prosecuted the case.

A Nocona man named a person of interest in the 2015 disappearance of a local 18-year-old pleaded guilty today to preying on the boy when he was a minor, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.

Hours after the court declared a mistrial due to juror injury, Ricky Dale Howard, 59, pleaded guilty to sexual exploitation of a child.

“Although much of what happened to this young boy remains a mystery, we know one thing for sure: Before he went missing, he suffered at the hands of a child sex predator. He was preyed upon by a man his family knew and trusted,” said Acting U.S. Attorney Shah. “Our fervent hope is that one day, he will be found. In the meantime, we are proud to put the man who abused him behind bars.”

FBI Dallas Special Agent in Charge Matthew J. DeSarno said, “We will continue to work with our partners to seek justice for this victim’s family and do all that we can to ensure that vulnerable members of our community are protected from those who seek to do them harm. The defendant will be held accountable for his reprehensible conduct, and we will remain committed to investigating anyone who seeks to exploit children.”

According to evidence presented in court before the mistrial was declared, law enforcement obtained several of Mr. Howard’s computers during an investigation into the disappearance of a high school senior who was reported missing on April 1, 2015, just two weeks after his 18th birthday.  

On the computers, investigators found sexually explicit images that appeared to show Mr. Howard sexually abusing the missing boy. In pleading guilty, Mr. Howard admitted that he enticed the minor into engaging in sexually explicit conduct for the purpose of creating a visual depiction.

At trial, the boy’s mother testified she and her children had been close with the Howard family since the boys were children. Tami Diehl said her son began performing odd jobs for Mr. Howard during middle school.

Law enforcement officers testified that following the boy’s disappearance, Mr. Howard told police the last time he’d seen the victim was the weekend before he went missing, when the pair attempted to repair his broken-down truck.  Several days into the missing person investigation, an officer observed a burn pit with several incinerated computers on Mr. Howard’s property.

Two years after the disappearance, Ms. Diehl discovered a small handheld tape recorder hidden in the back of a bathroom cabinet. The tape recorder contained audio of Mr. Howard asking himself polygraph questions pertaining to his sexual interest in young boys.

Shortly thereafter, investigators re-examined the missing persons case. Recalling the incinerated computers, officers asked Mr. Howard’s ex-wife and later his daughter for the computers, which were examined by analysts at the FBI’s North Texas Regional Computer Forensic Lab. Ms. Diehl, one of Mr. Howard’s sons, and Mr. Howard’s ex-wife all identified the missing victim in redacted versions of photographs extracted from the computers.

Mr. Howard now faces up to 30 years in federal prison.

The Federal Bureau of Investigation’s Dallas Field Office, Wichita Falls Resident Agency, the Montague County Sheriff’s Office, and the Nocona Police Department conducted the investigation with the assistance of the Montague County District Attorney’s Office and the Texas Rangers. Assistant U.S. Attorneys Brandie Wade and Nancy Larson are prosecuting the case. U.S. District Judge Reed O’Connor presided over trial in Fort Worth.

Federal and local law enforcement recovered more than a kilogram of cocaine, half a kilogram of methamphetamine, 14 firearms, and nearly $1.6 million dollars in cash during a drug bust at a two-bedroom home in southeast Dallas last week, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.  

The agents also arrested Hector Manuel Castro-Quirino, 47, and his girlfriend Vanesa Ann Cervantes, 38. Charged via criminal complaint with drug conspiracy and possession with intent to distribute, they made their initial appearances in federal court on Friday.

“Far too often, gun and drugs are a lethal combination. We are thankful to the tenacious agents who took these dangerous items, and their owners, off our streets,” said Acting U.S. Attorney Prerak Shah. “The law enforcement community will not rest until we’ve made a real dent in violent crime in Dallas.” 

 “Mr. Castro and Ms. Cervantes were allegedly involved in more crimes than a Hollywood script. Fortunately for the people of Dallas, their criminal escapades came to a crushing end last week. ATF and our partners remain committed to Chief Garcia’s plan to reduce violent crime in Dallas. These arrests were another win for the good guys” stated ATF Special Agent in Charge Jeffrey C. Boshek II. 

According to the complaint, the investigation began in June, when law enforcement was tipped off about drug dealers operating out of a home on South Acres Drive in Dallas. Later that month, agents with ATF, the Dallas Police Department, and Texas Department of Public Safety completed a series of undercover drug buys from the individuals living in the home.

On July 13, they raided the residence . Mr. Castro allegedly fled to the attic before surrendering; Ms. Cervantes was confronted in the kitchen.

During a search of the home, agents found five gallon-sized plastic bags containing bulk quantities of drugs stashed in the master bedroom alongside distribution-sized plastic baggies of assorted colors.  They also found drug ledgers containing customer and payment information, as well as 14 firearms, some of them loaded. Inside tube socks, shoe boxes, and a large trash bag, agents found large sums of U.S. currency.

After his arrest, Mr. Castro allegedly admitted to trafficking drugs, saying he received roughly one kilogram of cocaine and one kilogram of meth each month. Ms. Cervantes allegedly admitted that she maintained the drug ledgers.

A criminal complaint is merely an allegation of wrongdoing, not evidence. Like all defendants, Mr. Castro-Quirino and Ms. Cervantes are presumed innocent until proven guilty in a court of law.

If convicted, they face up to 20 years in federal prison.

The Bureau of Alcohol, Tobacco, Firearms & Explosives’ Dallas Field Division, the Dallas Police Departments’ Narcotics and SWAT units, and the Texas Department of Public Safety conducted the investigation with assistance from the Drug Enforcement Administration’s Dallas Field Division, the Federal Bureau of Investigation’s Dallas Field Office, and  Homeland Security Investigations. Assistant U.S. Attorneys Phelesa Guy and Rick Calvert are prosecuting the case.

An Amarillo woman was sentenced today to 34 months in federal prison for harassing a sex trafficking victim in an attempt to dissuade her from testifying against her trafficker, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.

Deziree Lujan, 29, pleaded guilty to witness tampering in March. She was sentenced Friday by U.S. District Judge Ada Brown.

According to plea papers, Ms. Lujan admitted that she threatened to beat a sex trafficking victim for cooperating against defendant Tremont Blakemore, who was charged in September 2019 with operating a large-scale human trafficking operation.

Mr. Blakemore, aka “Macknificent,” allegedly forced multiple women into commercial sex and slapped, punched, choked, and kicked victims he believed were not being honest or making enough money for him. He is slated to go to trial on August 23. (Like all defendants, Mr. Blakemore is presumed innocent until proven guilty.)

Ms. Lujan, a member of Mr. Blakemore’s alleged trafficking organization, admits she outed one of Mr. Blakemore’s alleged victims on social media, calling her “a snitch,” and “a rat.”

Ms. Lujan threatened the victim with physical harm, warned the victim that she would post law enforcement reports about the victim online, and reached out to known pimps to reveal the victim’s identity and cooperation.

The defendant admitted she acted intentionally to harass the victim in order to dissuade her from testifying against Mr. Blakemore.

Homeland Security Investigations’ North Texas Trafficking Task Force conducted the investigation into Ms. Lujan. They also led the investigation into Mr. Blakemore, with assistance from the Federal Bureau of Investigation’s Dallas Field Office and the Dallas Police Department. Assistant U.S. Attorney Melanie Smith prosecuted the case.

A Canadian national who overstayed his visa to work as a keeper of exotic cats has been sentenced to 28 months in federal prison for a gun crime, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.

Following two days of trial, in March, a federal jury convicted Paul Michael Malagerio, 65, of unlawful alien in possession of firearms. He was sentenced today by U.S. District Judge James Wesley Hendrix.

At trial, agents testified that they arrested Mr. Malagerio based on an administrative warrant for visa overstay at the Whitley Acres Exotic Ranch in Levelland, Texas in November 2020.  Inside his RV, they found an AR-15, a shotgun, and a 9 mm pistol. Mr. Malagerio also had a mountain lion on the property.

(Mr. Malagerio’s unlawful presence in the country prevented him from possessing firearms.)

In jailhouse phone calls, Mr. Malagerio indicated that he knew he was in the United States illegally: “So I’m guilty of it, but can we plead where I can go and pack my stuff, my animals… and leave with my tail between my legs?” he asked.  [Audio available to credentialed media upon request.]

During a court proceeding in February, Mr. Malagerio testified that he worked for James Garretson, the exotic cat enthusiast turned FBI informant featured in Netflix's “Tiger King.” 

In another jailhouse call, Mr. Malagerio claimed that Mr. Garretson had reported him to immigration authorities, telling a friend, “see, James [Garretson] is the only one that knows where I am and he threatened to do this about a month ago.”

Homeland Security Investigations, Immigration & Customs Enforcement’s Enforcement and Removal Operations, and the Bureau of Alcohol, Tobacco, Firearms & Explosives’ Dallas Field Division conducted the investigation with the assistance of the Texas Game Wardens.  Assistant U.S. Attorneys Ryan Redd and Jeffrey Haag prosecuted the case.

A former Perryton police officer pleaded guilty today to child pornography charges, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.

Aaron Bennett Daugherty, 36, pleaded guilty on Wednesday to one count of transportation of child pornography. He was charged via criminal complaint in February.

According to plea papers, Mr. Daugherty was nabbed in an undercover FBI investigation into individuals using Kik, a social media app popular among teenagers, to share explicit images of children.

On June 9 2020, a Kik user with an obscene screenname – later identified as Mr. Daugherty – shared a video file depicting an adult male engaged in sexual acts with a blindfolded prepubescent child.

“I’m here to look at CP, everybody,” the user posted two weeks later. “Go on with the CP content!”

Law enforcement later contacted Mr. Daugherty at the Perryton Police Department. He admitted that he used Kik to view and share child pornography, adding that child porn did not “bother” him.

The defendant now faces up to 20  years in federal prison. A sentencing hearing has not yet been set.

The Federal Bureau of Investigation’s Dallas Field Office – Amarillo Resident Agency, the Texas Rangers, and the Winnebago County Sheriff’s Office conducted the investigation with the full cooperation of the Perryton Police Department. Assistant U.S. Attorney Joshua Frausto is prosecuting the case.

A federal jury convicted Dallas area owners and operators of two durable medical equipment companies Thursday of one count of conspiracy to defraud the United States and to pay and receive health care kickbacks and one count of conspiracy to commit money laundering.

According to the evidence presented at trial, Leah Hagen, 49, and Michael Hagen, 54, of Arlington, Texas, were owners and operators of two durable medical equipment (DME) companies: Metro DME Supply LLC (Metro) and Ortho Pain Solutions LLC (Ortho Pain), both operated out of the same location in Arlington. The defendants paid a fixed rate per DME item in exchange for prescriptions and paperwork completed by telemedicine doctors that were used to submit false claims to Medicare. The defendants paid illegal bribes and kickbacks and wired money to their co-conspirator’s call center in the Philippines that provided signed doctor’s orders for orthotic braces. The evidence at trial showed emails exchanged between Leah and Michael Hagen and their co-conspirators showing a per-product pricing structure for orthotic braces but disguising their agreement as one for marketing and other services.

Through this scheme, the defendants billed Medicare Parts B and C approximately $59 million and were paid approximately $27 million. The defendants wired millions of proceeds into their personal bank accounts, both in the U.S. and overseas. At sentencing, the Hagens each face a maximum sentence of 25 years in prison.

Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division, Acting U.S. Attorney Prerak Shah of the Northern District of Texas, Special Agent in Charge Miranda Bennett of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Region, and Special Agent in Charge Matthew J. DeSarno of the FBI’s Dallas Field Office made the announcement.

This case was investigated by HHS-OIG and the FBI and was brought as part of Operation Brace Yourself, a federal law enforcement action led by the Health Care Fraud Unit of the Criminal Division’s Fraud Section, in partnership with the U.S. Attorney’s Offices for the Districts of South Carolina, New Jersey, and the Middle District of Florida. 

Assistant Deputy Chief Adrienne Frazior and Trial Attorneys Brynn Schiess and Catherine Wagner of the Criminal Division’s Fraud Section are prosecuting the case.

The Fraud Section leads the Health Care Fraud Strike Force. Since its inception in March 2007, the Health Care Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

A Long Beach, California man was sentenced today to 45 years in federal prison after being convicted at trial of committing a spree of violent cell phone store robberies, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.

A federal jury found Edward Eugene Robinson, 50, guilty of one count of conspiracy to interfere with commerce by robbery, two counts of interfering with commerce by robbery, and two counts of brandishing a firearm during a crime of violence in March.

According to evidence presented at trial — which included eyewitness testimony, store surveillance videos, and evidence obtained from search warrants — Mr. Robinson was the leader of a robbery crew that committed at least 15 armed robberies of cell phone stores across North Texas and Southern California in the spring and summer of 2019.

During the robberies, Mr. Robinson and his accomplices threatened store employees with guns and tazers and demanded that they open the safes where the phones and other equipment were stored. The robbers then restrained the employees using zip-ties or cell phone chargers.

Over the course of the conspiracy, Mr. Robinson stole more than $600,000 of inventory, including cell phones, tablets, and watches. 

The other defendants in the case — Aaron Hardrick and Ncholeion Hollie, both of Fort Worth, Texas — previously pleaded guilty. Mr. Hardrick pleaded guilty in 2019 to multiple federal robbery and firearms charges in North Texas and Southern California. He was sentenced to 45 years in federal prison. Ms. Hollie pleaded guilty in 2020 to one federal robbery charge in North Texas and was sentenced to 9 years in federal prison.

The Federal Bureau of Investigation’s Dallas Field Office, Fort Worth Police Department, Hurst Police Department, and Bedford Police Department conducted the investigation.  Assistant U.S. Attorney Matthew Weybrecht and Nancy Larson of the Northern District of Texas prosecuted the case, with substantial assistance from Assistant U.S. Attorneys Jerry C. Yang and Peter H. Dahlquist of the Central District of California.

A darkweb cocaine and heroin trafficker has been sentenced to 6 ½ years in federal prison for drug conspiracy, announced U.S. Attorney for the Northern District of Texas.

Aaron Brewer – a 39-year-old charged under Operation DisrupTor, a coordinated international effort to disrupt opioid trafficking on the Darknet – pleaded guilty in December to conspiracy to possess with intent to distribute a controlled substance. He was sentenced Thursday to 78 months by Chief U.S. District Judge Barbara M.G. Lynn, who also ordered the defendant to forfeit $50,000 in drug proceeds.

According to plea papers, Mr. Brewer admitted he created darkweb market vendor accounts in order to sell cocaine, heroin, and other controlled substances online.

Mr. Brewer’s customers paid him in cryptocurrency, typically bitcoin, and frequently used aliases for shipping. After receiving payment, Mr. Brewer used the U.S. Mail and other shipping services to transmit controlled substances to customers in North Texas and across the country.

In March 2020, law enforcement discovered a ledger linking controlled substances orders with tracking numbers inside his apartment.

Mr. Brewer later admitted that over an 11-monthe period, he dealt more than 4,000 grams of cocaine and more than 80 grams of black tar heroin, then used the more than $50,000 in proceeds of the illegal activity to pay his mortgage.

The U.S. Postal Inspection Service and the Federal Bureau of Investigation’s Dallas Field Office conducted the investigation. Assistant U.S. Attorney Sid Mody is prosecuting the case.

Operation DisrupTor actions have resulted in the arrest of 179 Darknet drug traffickers and fraudulent criminals who engaged in tens of thousands of sales of illicit goods and services across the United States and Europe. The operation also resulted in the seizure of over $6.5 million; approximately 500 kilograms of drugs worldwide (including approximately 275 kilograms of drugs in the U.S.); and 63 firearms.

Avanos Medical Inc., a U.S.-based multinational medical device corporation, has agreed to pay more than $22 million to resolve a criminal charge relating to the company’s fraudulent misbranding of its MicroCool surgical gowns.

A criminal information filed yesterday in the U.S. District Court for the Northern District of Texas charges Avanos with one count of introducing misbranded surgical gowns into interstate commerce with the intent to defraud and mislead.  According to court filings, Avanos falsely labeled the gowns as providing the highest level of protection against fluid and virus penetration.

Under the terms of a deferred prosecution agreement filed with the criminal information, Avanos will pay $22,228,000, composed of a victim compensation payment of $8,939,000, a criminal monetary penalty in the amount of $12,600,000, and a disgorgement payment of $689,000. The deferred prosecution agreement resolves a criminal investigation into Avanos’s misbranding of its MicroCool surgical gowns under the Federal Food, Drug, and Cosmetic Act (FDCA) and the company’s obstruction of a 2016 for-cause inspection conducted by the U.S. Food and Drug Administration (FDA) into Avanos’s surgical gown business.

“The last thing health care workers should have to worry about is whether their personal protective equipment lives up to manufacturers’ claims,” said Acting U.S. Attorney Prerak Shah for the Northern District of Texas. “Misbranded PPE can pose serious risks to medical professionals and patients alike. All companies that do business in Texas, health care or otherwise, will be held accountable for the promises they make about their products.”

“Companies that sell medical products put their customers at risk when they misrepresent the quality of those products,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The Department of Justice will work with its law enforcement partners to prosecute companies that put profits over safety, especially when they provide products meant to protect medical professionals in potentially high-risk situations involving infectious diseases.”

“Customers of Avanos trusted the company to deliver on the promises it made about the safety of its surgical gowns,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “Avanos betrayed that trust. This resolution emphasizes that the department will hold companies in the medical device industry accountable.”

“Medical devices, such as surgical gowns, must have truthful and accurate labeling,” said Assistant Commissioner for Criminal Investigations Catherine A. Hermsen of the FDA. “Surgical gowns with false or misleading labeling can put health care practitioners and patients at risk. The FDA’s Office of Criminal Investigations protects the American public by aggressively investigating allegations involving FDA-regulated products.”

According to court documents, surgical gowns sold in the United States are subject to regulation by the FDA, which recognizes a system of classification set forth by the American National Standards Institute (ANSI) and the Association for the Advancement of Medical Instrumentation (AAMI) — known as the ANSI/AAMI PB70 standard. The ANSI/AAMI PB70 standard was first established in 2003 and revised to be more rigorous in 2012. Under the standard, the highest protection level for surgical gowns — AAMI Level 4 — is reserved for gowns intended to be used in surgeries and other high-risk medical procedures on patients suspected of having infectious diseases.

As part of the deferred prosecution agreement, Avanos admitted that between late 2014 and early 2015, it sold hundreds of thousands of MicroCool surgical gowns that were labeled as AAMI Level 4 under the 2012 ANSI/AAMI PB70 standard but did not actually meet that standard. In addition, Avanos made direct misrepresentations to customers about the MicroCool gowns’ compliance with the 2012 ANSI/AAMI PB70 standard. For example, in November 2014, Avanos sent letters to certain hospitals and other potential purchasers that falsely claimed that the MicroCool gowns met the revised and more rigorous 2012 ANSI/AAMI PB70 standard for classification as AAMI Level 4 — a standard that Avanos’s employees knew the gowns had never met. At least one of these letters was sent in response to a request for assurances made by a health care provider seeking to obtain surgical gowns for use in responding to the 2014 Ebola outbreak. In total, Avanos sold approximately $8,939,000 worth of misbranded MicroCool gowns to customers in the United States and abroad.

In addition, according to court documents, an employee and an agent of Avanos obstructed a July 2016 FDA for-cause inspection of the company’s surgical gown business by making numerous false entries in four documents requested by FDA investigators.

As part of the criminal resolution, Avanos has agreed to continue to cooperate with the Justice Department and to report any evidence or allegation of a violation of the FDCA or U.S. obstruction or fraud laws committed by Avanos’s employees or agents upon any domestic government agency (including the FDA), regulator or any of Avanos’s customers. Avanos has further agreed to strengthen its compliance program and abide by specific reporting requirements, which require the company to submit yearly reports to the government regarding the status of Avanos’s enhancements to its compliance program and internal controls, policies and procedures aimed at deterring and detecting violations of the FDCA and U.S. obstruction and fraud laws, and the status of its remediation efforts.

The government reached this resolution with Avanos based on a number of factors, including the nature and seriousness of the offense conduct and Avanos’s failure to timely and voluntarily self‑disclose the offense conduct to the department. In addition, Avanos fully cooperated with the investigation conducted by the government, including conducting a thorough internal investigation, meeting requests from the government promptly, making factual presentations to the government, assisting in making a key foreign-based employee available for interview, and producing extensive documentation to the government, including documents located in a foreign jurisdiction.

The government also considered that Avanos engaged in remedial measures after the offense conduct, including: (i) changing the manufacturing process for the MicroCool surgical gowns to improve the quality of their sleeve seams; (ii) reorganizing its quality and regulatory departments so that they report directly to the CEO; (iii) substantially increasing the budget and headcount of its compliance and quality departments; (iv) creating a stand-alone Compliance Committee of the Board of Directors; (v) enhancing the independence, autonomy and resources of its compliance function by creating a stand-alone compliance department and appointing a full-time Chief Ethics and Compliance Officer who reports directly to the CEO and presents compliance reports to the Compliance Committee at least five times per year; (vi) enhancing compliance training for its employees; and (vii) implementing revised procedures for the review and approval of all medical device marketing material.

The criminal case was investigated by the FDA’s Office of Criminal Investigations.

Senior Litigation Counsel Allan Gordus and Trial Attorneys David Gunn and Max Goldman of the Civil Division’s Consumer Protection Branch, Trial Attorney John “Fritz” Scanlon of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Katherine Miller of the Northern District of Texas prosecuted the case. 

Avanos Medical Inc., a U.S.-based multinational medical device corporation, has agreed to pay more than $22 million to resolve a criminal charge relating to the company’s fraudulent misbranding of its MicroCool surgical gowns.

A criminal information filed yesterday in the U.S. District Court for the Northern District of Texas charges Avanos with one count of introducing misbranded surgical gowns into interstate commerce with the intent to defraud and mislead. According to court filings, Avanos falsely labeled the gowns as providing the highest level of protection against fluid and virus penetration. Under the terms of a deferred prosecution agreement filed with the criminal information, Avanos will pay $22,228,000, composed of a victim compensation payment of $8,939,000, a criminal monetary penalty in the amount of $12,600,000 and a disgorgement payment of $689,000. The deferred prosecution agreement resolves a criminal investigation into Avanos’s misbranding of its MicroCool surgical gowns under the Federal Food, Drug, and Cosmetic Act (FDCA) and the company’s obstruction of a 2016 for-cause inspection conducted by the U.S. Food and Drug Administration (FDA) into Avanos’s surgical gown business.

“Companies that sell medical products put their customers at risk when they misrepresent the quality of those products,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The Department of Justice will work with its law enforcement partners to prosecute companies that put profits over safety, especially when they provide products meant to protect medical professionals in potentially high-risk situations involving infectious diseases.”

“Customers of Avanos trusted the company to deliver on the promises it made about the safety of its surgical gowns,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “Avanos betrayed that trust. This resolution emphasizes that the department will hold companies in the medical device industry accountable and shows the Criminal Division’s dedication to partnering with the Civil Division’s Consumer Protection Branch to root out fraud.”

“The last thing health care workers should have to worry about is whether their personal protective equipment lives up to manufacturers’ claims,” said Acting U.S. Attorney Prerak Shah for the Northern District of Texas. “Misbranded PPE can pose serious risks to medical professionals and patients alike. All companies that do business in Texas, health care or otherwise, will be held accountable for the promises they make about their products.”

“Medical devices, such as surgical gowns, must have truthful and accurate labeling,” said Assistant Commissioner for Criminal Investigations Catherine A. Hermsen of the FDA. “Surgical gowns with false or misleading labeling can put health care practitioners and patients at risk. The FDA’s Office of Criminal Investigations protects the American public by aggressively investigating allegations involving FDA-regulated products and violations of the FDCA. In this case, OCI worked with the Department of Justice to ensure a just resolution, and we applaud the exceptional work done by the team.”

According to court documents, surgical gowns sold in the United States are subject to regulation by the FDA, which recognizes a system of classification set forth by the American National Standards Institute (ANSI) and the Association for the Advancement of Medical Instrumentation (AAMI) — known as the ANSI/AAMI PB70 standard. The ANSI/AAMI PB70 standard was first established in 2003 and revised to be more rigorous in 2012. Under the standard, the highest protection level for surgical gowns — AAMI Level 4 — is reserved for gowns intended to be used in surgeries and other high-risk medical procedures on patients suspected of having infectious diseases. 

As part of the deferred prosecution agreement, Avanos admitted that between late 2014 and early 2015, it sold hundreds of thousands of MicroCool surgical gowns that were labeled as AAMI Level 4 under the 2012 ANSI/AAMI PB70 standard but did not actually meet that standard. In addition, Avanos made direct misrepresentations to customers about the MicroCool gowns’ compliance with the 2012 ANSI/AAMI PB70 standard. For example, in November 2014, Avanos sent letters to certain hospitals and other potential purchasers that falsely claimed that the MicroCool gowns met the revised and more rigorous 2012 ANSI/AAMI PB70 standard for classification as AAMI Level 4 — a standard that Avanos’s employees knew the gowns had never met. At least one of these letters was sent in response to a request for assurances made by a health care provider seeking to obtain surgical gowns for use in responding to the 2014 Ebola outbreak. In total, Avanos sold approximately $8,939,000 worth of misbranded MicroCool gowns to customers in the United States and abroad.

In addition, according to court documents, an employee and an agent of Avanos obstructed a July 2016 FDA for-cause inspection of the company’s surgical gown business by making numerous false entries in four documents requested by FDA investigators.

As part of the criminal resolution, Avanos has agreed to continue to cooperate with the Justice Department and to report any evidence or allegation of a violation of the FDCA or U.S. obstruction or fraud laws committed by Avanos’s employees or agents upon any domestic government agency (including the FDA), regulator or any of Avanos’s customers. Avanos has further agreed to strengthen its compliance program and abide by specific reporting requirements, which require the company to submit yearly reports to the government regarding the status of Avanos’s enhancements to its compliance program and internal controls, policies and procedures aimed at deterring and detecting violations of the FDCA and U.S. obstruction and fraud laws, and the status of its remediation efforts.

The government reached this resolution with Avanos based on a number of factors, including the nature and seriousness of the offense conduct and Avanos’s failure to timely and voluntarily self‑disclose the offense conduct to the department. In addition, Avanos fully cooperated with the investigation conducted by the government, including conducting a thorough internal investigation, meeting requests from the government promptly, making factual presentations to the government, assisting in making a key foreign-based employee available for interview, and producing extensive documentation to the government, including documents located in a foreign jurisdiction. 

The government also considered that Avanos engaged in remedial measures after the offense conduct, including: (i) changing the manufacturing process for the MicroCool surgical gowns to improve the quality of their sleeve seams; (ii) reorganizing its quality and regulatory departments so that they report directly to the CEO; (iii) substantially increasing the budget and headcount of its compliance and quality departments; (iv) creating a stand-alone Compliance Committee of the Board of Directors; (v) enhancing the independence, autonomy and resources of its compliance function by creating a stand-alone compliance department and appointing a full-time Chief Ethics and Compliance Officer who reports directly to the CEO and presents compliance reports to the Compliance Committee at least five times per year; (vi) enhancing compliance training for its employees; and (vii) implementing revised procedures for the review and approval of all medical device marketing material.

The criminal case was investigated by the FDA’s Office of Criminal Investigations.

Senior Litigation Counsel Allan Gordus and Trial Attorneys David Gunn and Max Goldman of the Civil Division’s Consumer Protection Branch, Trial Attorney John “Fritz” Scanlon of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Katherine Miller of the Northern District of Texas prosecuted the case.

An Arlington physician has been convicted of drug crimes, announced Acting U.S. Attorney Prerak Shah.

Following five days of trial, a federal jury convicted physician Clinton Battle, 68, of one count of conspiracy to distribute controlled substances and one count of distribution of a controlled substance.

According to evidence presented at trial,  Dr. Battle routinely issued prescriptions for controlled substances – including hydrocodone, alprazolam, acetaminophen with codeine, tramadol, and phentermine – outside the usual course of professional practice and without a legitimate medical purpose.

At time, he issued prescriptions for controlled substances without conducting any medical examination at all, sometimes telling office staff to issue prescriptions for whichever controlled substance the patient wanted. He also issued prescriptions for friends or family members with whom he had no physician-patient relationship.

“Dr. Battle and his coconspirators knowingly propagated prescription drug abuse by dispensing powerful painkillers to individuals with no need for them,” said Acting U.S. Attorney Prerak Shah. “The U.S. Attorney’s Office is proud to partner with the DEA and other law enforcement agencies to stop unscrupulous pill pushers like Dr. Battle in their tracks.” 

“As we continue to lose lives by the misuse and abuse of prescription drugs, we look to our medical professionals for sound guidance, professionalism, and integrity,” stated DEA Dallas Special Agent in Charge Eduardo A. Chávez. “Dr. Battle and his conspirators broke that oath for one sole purpose:  greed.  Today’s conviction is a testament to the work of our investigators, prosecutors, and law enforcement partners who will continue to protect the lives of our loved ones.”

At trial, one of Dr. Battle’s former employees testified that she, her husband, and Dr. Battle agreed that Dr. Battle would provide the employee’s husband with illegal controlled substance prescriptions in exchange for cocaine. In addition to cocaine, the evidence also showed that Dr. Battle would receive money in the form of fees paid by “patients” of $200 for an initial visit and $80 for return visits in exchange for controlled substance prescriptions.

Dr. Battle also allowed his nurse practitioner, co-conspirator Donna Green, to use his DEA registration number and medical credentials to issue prescriptions for controlled substances, despite knowing that Ms. Green was not legally authorized to issue such prescriptions.

On the morning trial was set to begin, Ms. Green pled guilty to one count of acquiring a controlled substance through fraud.

Throughout the course of the five-year conspiracy, Dr. Battle issued more than 50,000 controlled substance prescriptions, 17,000 of which were for the powerful opioid hydrocodone.

Dr. Battle faces up to 15 years in federal prison. A sentencing hearing has been set for October 28, 2021.

The Drug Enforcement Administration’s Dallas Field Division, the U.S. Department of Labor, the U.S. Postal Service Office of Inspector General, IRS – Criminal Investigations, and the Texas Department of Insurance conducted the investigation. Assistant U.S. Attorneys Matthew Weybrecht and Jay Weimer are prosecuting the case with the help of their appellate liaison, Assistant U.S. Attorney Leigha Simonton. U.S. District Judge Mark Pittman presided over the trial.

A San Marcos man has been sentenced to two years in federal prison for illegally excavating a Native American homestead in Amarillo, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.

Jeffrey Alan Vance, 37, pleaded guilty in February to violating the Archeological Resource Protection Act (ARPA), a federal law that prohibits the unauthorized removal of artifacts from tribal land. He was sentenced Tuesday by U.S. District Judge Matthew J. Kacsmaryk.

According to plea papers, Mr. Vance admits he and a coconspirator, 33-year-old Dax Wheatley, excavated Native American artifacts from a site known as 41PT109 – a former homestead of the Antelope Creek Culture, Native Americans who lived in the Texas panhandle between approximately 1200-1500 A.D.

In March 2019, a tipster alerted the Bureau of Land Management that an individual calling himself "Jerry Montopolis" had posted photographs of an illegal excavation on facebook.  When a commenter warned “Jerry” that he was “digging in federal land and rangers enforce there,” he responded, “I’m not scared of the feds.”

The Bureau of Land Management sent the photographs – posted in December 2017 – to Homeland Security Investigations, which was able to identify the men in the photos as Mr. Vance and Mr. Wheatly. The facebook account, they determined, actually belonged to Mr. Vance, who bragged that he planned to display skeletons he’d excavated in his “secret artifact lair.”

In a text messages reviewed by law enforcement, Mr. Vance called himself an “infamous  illegal excavator of Native American artifacts in Texas” and warned his contacts, “don’t be telling people we are digging on government property!”

Following a search of his home in November 2019, Mr. Vance admitted that he had human remains and burial beads inside his residence.

Mr. Wheatley also admitted to violating ARPA. He entered his guilty plea in February and is slated to be sentenced in July.

A Richardson man who calls himself “Doctor Bitcoin” has pleaded guilty to illegally operating a cash-to-cryptocurrency conversion business, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.

Mark Alexander Hopkins, 42, pleaded guilty Tuesday to one count of operation of an unlicensed money transmitting business. (He was charged via a criminal information on July 29, 2021.)

“This defendant ignored federal law and allowed fraudsters to use Bitcoin to operate under the radar of law enforcement,” said Acting U.S. Attorney Prerak Shah. “We are determined to rid the Bitcoin marketplace of anyone who knowingly helps criminal actors stash illegal profits inside crypto wallets.”

According to plea papers, Mr. Hopkins admitted he ran a business that converted U.S. dollars to cryptocurrency, primarily Bitcoin, for a fee. He frequently sent BTC to customers’ crypto wallets without taking additional steps in verifying the source of the cash, he admitted.

In September 2019, a customer identified in court documents as “M.H.” approached Mr. Hopkins to convert U.S. dollars to BTC.  The money Mr. Hopkins received from M.H. stemmed from a lottery scam he was running with a coconspirator in Nigeria. 

Mr. Hopkins admitted he promised not to get involved in the details of M.H’s business dealings, but told M.H. how to circumvent financial institution reporting requirements by keeping deposits under $9,500, and directed M.H. to lie to financial institutions about the purpose of the business:

“I’m set up as a marketing company, so tell them you’re paying for a marketing campaign,” he said.

Over the course of about a year, Mr. Hopkins conducted 37 transactions with M.H., converting between $550,000 and $1.5 million, he said.

The defendant admitted he was not licensed to engage in the business of transmitting money within the states where he practiced, nor was he registered as a money transmitting business with the U.S. Department of the Treasury. He failed to follow federal laws that require money transmitting businesses to verify customers’ names, date of birth, and address – a law aimed at identifying those engaged in unlawful activity – and failed to file currency transaction reports for high-value cash-in transactions.

Mr. Hopkins now faces up to five years in federal prison.

The Federal Bureau of Investigation’s Dallas Field Office conducted the investigation. Assistant U.S. Attorney Sid Mody is prosecuting the case.

UPDATE: In an opinion handed down on Aug. 23, 2022, the Fifth Circuit Court of Appeals vacated the below conviction and remanded it for further proceedings.

A Dallas real estate developer has been convicted of bribing two former Dallas City Council members, Carolyn Davis and Dwaine Caraway, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.

Following two weeks of trial, a federal jury convicted Ruel Hamilton, the president of AmeriSouth Realty Group, of one count of conspiracy and two counts of bribery of an agent of a local government receiving federal funds. 

“The people of Dallas deserve true public servants, not those bought and paid for by the city’s elite. By using money to bend elected officials to his will, Mr. Hamilton betrayed the communities he purports to hold dear,” said Acting U.S. Attorney Prerak Shah. “The U.S. Attorney’s Office will not allow a kickback culture to fester at City Hall. To anyone considering this sort of unscrupulous behavior: Think twice. Our prosecutors are tenacious, and we are determined to root out corruption wherever we find it.”

“Public corruption is one of the FBI’s top criminal priorities, it erodes the public’s trust and wastes valuable resources intended for taxpayers," said FBI Dallas Special Agent in Charge Matthew J. DeSarno. "Mr. Hamilton used his influence and money to circumvent the system by bribing two city council members to earn incentives for an affordable housing project and push an agenda to increase his political influence. The FBI and our law enforcement partners will continue to ensure that those who pay bribes, accept bribes and facilitate bribe payments are held fully accountable.”

According to evidence presented at trial, from 2013 to 2015, Mr. Hamilton shelled out tens of thousands of dollars in bribes to Carolyn Davis, who was then serving as chair of the city’s Housing Committee.

In return, Ms. Davis – who pleaded guilty to her role in the scheme prior to her death in 2019 – supported Mr. Hamilton’s Royal Crest housing project, voting to authorize a real estate development loan and resolutions supporting an award of a 9 percent tax credit for Royal Crest.  Ms. Davis supported the Royal Crest housing project, despite the fact that it failed to meet the city’s enumerated multifamily housing priorities. 

In an attempt to disguise the bribe payments, Mr. Hamilton funneled payments to Ms. Davis through a not-for-profit intermediary run by Jeremy “Jay” Scroggins. Mr. Scroggins –  who also previously pleaded guilty – testified at trial that he cashed thousands of dollars’ worth of checks, solicited by Ms. Davis and made out to him personally or to his not-for-profit, “Hip Hop Government.  Mr. Scroggins testified that he used $15,000 for a Freedom Ride Tour in November 2014, and cashed the remainder of the checks, turning most of the money over to Ms. Davis.  The councilwoman told Mr. Scroggins payments would not pose a problem, because people “don’t go to prison for $2,000,” according to a recorded phone call played in court. 

Evidence showed that Mr. Hamilton also paid Ms. Davis directly. Over the course of the conspiracy, Mr. Hamilton forked over cash, and on at least one occasion he invited her to accompany him to the bank to make a cash withdrawal. At Ms. Davis’ urging, Mr. Hamilton also directed campaign contributions to a political protégé.  Further, Mr. Hamilton promised Ms. Davis a job once she was off the counsel.  Evidence showed that Mr. Hamilton paid Ms. Davis in excess of $145,000, once she left the council. 

At one point, Mr. Hamilton became concerned that a former city council member was going through their financial dealings with a “fine tooth comb,” telling Ms. Davis, “she scares me.” Even so, he continued to bribe Ms. Davis.

Three years later, in 2018, Mr. Hamilton paid a $7,000 bribe to councilman Dwaine Caraway, who Mr. Hamilton believed could persuade the mayor to put a paid sick leave referendum on the city council’s agenda.  Mr. Hamilton hoped the referendum would increase turnout in the polls, advantaging his preferred political candidates.

Video admitted into evidence at trial shows the pair meeting at Mr. Caraway’s office on August 3, 2018:

“I want to do that, so… what can I do for you, right now, today?” Mr. Hamilton asks.

“You can answer that bill I just threw out there for about 62 [$6,200] today,” Mr. Caraway responds.  

“Okay,” Mr. Hamilton says. “Can you follow through with the mayor?”

The pair then discuss what Mr. Hamilton should put in the memo line “for posterity” so that “if somebody ever asks, I can come up with a reference.” 

[Video clips available to credentialed press upon request.]

Mr. Hamilton, who was originally charged in February 2019, now faces up to 25 years in federal prison – up to five years for the conspiracy count and up to ten years for each bribery count. (He was acquitted of count of use of an interstate facility to commit bribery in violation of the Travel Act, a count that carried a sentence of up to five years.) His sentencing has been set for Nov. 9, 2021.

The Federal Bureau of Investigation’s Dallas Field Office conducted the investigation with the assistance of Internal Revenue Service - Criminal Investigations. Assistant U.S. Attorneys Tiffany H. Eggers, Chad E. Meacham, Joe A. Magliolo, Andrew Wirmani (fmr.), and Marcus Busch prosecuted the case with support from their appellate liaison, Assistant U.S. Attorney Stephen S. Gilstrap. Chief U.S. District Judge Barbara M. G. Lynn presided over the trial.

A Wichita Falls man who sold a weapon to a murderer has been convicted of a gun crime, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.

Devin DeAndre Mullins, 21, pleaded guilty on Friday to possession of a firearm by a convicted felon.

According to court documents, Mr. Mullins – who had been convicted of felony robbery in 2018 – admitted that he possessed a lime green 9mm Keltec pistol, which he later sold to a man named Gage Gillentine. Shortly thereafter, Mr. Gillentine used that gun to fatally shoot his girlfriend, 19-year-old Klowie Moore, inside a hotel room in Graham, Texas.

The pistol used in the murder, seized at the scene of the crime, matched photographs of a pistol Mr. Mullins posted to his social media accounts.

In a text message to a friend a few weeks before the murder, Mr. Mullins stated “Fin sell a pistol.” The following day, Mr. Gillentine messaged Mr. Mullins, “yo can bring that gun rn.”

In a noncustodial interview after the murder, Mr. Gillentine admitted to law enforcement that he purchased the murder weapon from Mr. Mullins.

Mr. Mullins now faces up to 10 years in federal prison. (Mr. Gillentine has been charged by the state in connection to the killing.)

The Bureau of Alcohol, Tobacco, Firearms & Explosives and the Texas Rangers conducted the investigation with the assistance of the Graham Police Department and the Young County Sheriff’s Office. Assistant U.S. Attorney Rob Boudreau is prosecuting the federal case against Mr. Mullins.

The case was brought under Project Guardian, the Justice Department's signature initiative to reduce gun violence and enforce federal firearms laws.

Three Texas men were sentenced yesterday for violent crimes against users of the gay dating app Grindr, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah and Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division.

Michael Atkinson, 28, Pablo Ceniceros-Deleon, 21, and Daryl Henry, 24, were sentenced to federal prison terms for their involvement in a scheme to target gay men for violent crimes. Atkinson was sentenced to more than 11 years in prison, Ceniceros-Deleon was sentenced to 22 years in prison, and Henry was sentenced to 20 years in prison.

“These defendants brutalized multiple victims, singling them out due to their sexual orientation. We cannot allow this sort of violence to fester unchecked,” said Acting U.S. Attorney Prerak Shah. “The Department of Justice is committed to prosecuting hate crimes. In the meantime, we urge dating app users to remain vigilant. Unfortunately, predators often lurk online.”  

“These three men participated in and committed acts of violence against innocent victims because they believed the victims were gay men,” said Assistant Attorney General Kristen Clarke. “This type of bias-motivated violence runs contrary to our values and violates our federal civil rights laws. The Department of Justice’s Civil Rights Division will aggressively investigate and prosecute those who target members of the LGBTQI community.”

“One of the FBI’s top priorities is to defend the civil rights of the communities we serve. We actively work with our law enforcement partners to investigate hate crimes and achieve justice for the victims impacted by these violent crimes,” said Special Agent in Charge Matthew J. DeSarno of the FBI Dallas Field Office. “The victims in this case were specifically targeted because of their sexual orientation. The FBI wants to reassure the public that we will pursue individuals who commit violent hate acts against any member of our community.”

According to documents filed in connection with this case, these three defendants admitted that they conspired to and then targeted as many as nine men in and around Dallas, Texas for violent crimes including kidnapping, carjacking, and hate crimes. Beginning on or around Dec. 6, 2017, members of this conspiracy used Grindr, a social media dating platform used primarily by gay men, to lure men to an apartment complex in Dallas. When the men arrived, the conspirators held the men at gunpoint and forced them to drive to local ATMs to withdraw cash from their accounts.

Atkinson and Henry admitted to joining this conspiracy to target gay men for violent crimes. On Dec. 11, 2017, the conspirators used Grindr to lure five men to a vacant apartment in Dallas where they held the men at gunpoint, kidnapped, carjacked, and assaulted them. As part of his plea agreement, Henry admitted that he used violence and threats of violence to hold the victims in the backroom and closet of the vacant apartment while other conspirators used the victims’ vehicles to drive to local ATMs to steal cash from the victims’ accounts. Atkinson and Ceniceros-Deleon admitted that they traveled in the carjacked vehicles to take cash from the victims’ accounts. While the victims were held at gunpoint, some were physically assaulted, at least one victim was sexually assaulted, and all of the victims were taunted with gay slurs.

In 2019, Atkinson pleaded guilty to one count of conspiracy to commit hate crimes, kidnapping and carjacking and one count of kidnapping. 

Ceniceros-Deleon pleaded guilty in 2019 to one hate crime count, one count of carjacking, and one count of use of a firearm during and in relation to a crime of violence. 

Henry pleaded guilty in 2019 to one hate crime count and one count of conspiracy to commit hate crimes, kidnapping and carjacking. 

A final member of the conspiracy will be sentenced on Oct. 6, 2021. This final conspirator, Daniel Jenkins, pleaded guilty on June 3 to a hate crime violation; conspiracy to commit hate crimes, kidnapping and carjacking; and use of a firearm during and in relation to a crime of violence. Under the plea agreement, Jenkins faces a maximum sentence of 26 years in prison.

The FBI’s Dallas Field Office conducted the federal investigation; a separate criminal investigation is being conducted by the Dallas Police Department. Special Litigation Counsel Rose E. Gibson and Trial Attorney Kathryn Gilbert of the Justice Department’s Civil Rights Division, along with Assistant United States Attorney Nicole Dana, are prosecuting the case.

Nine alleged members of the “Hogg Life” gang have been charged with federal drug crimes, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.

The defendants were indicted last Wednesday. Several of them made their initial appearances before U.S. Magistrate Judge Lee Ann Reno on Monday.

During a multi-pronged operation on Friday, law enforcement agents arrested several of the defendants and recovered nearly a kilogram of bulk marijuana, multiple grams of psilocybin (hallucinogenic mushrooms), oxycontin, alprazolam, four pistols, and more than $17,000 cash.  This seizure follows the execution of a search warrant served in May, when law enforcement seized more than 125 pounds of bulk marijuana, THC products, and psilocybin products, and over $63,000 in cash from members of the “Hogg Life” gang.   

According to court documents, the investigation began in spring 2018, when multiple anonymous callers reported interstate drug trafficking to the Amarillo Police Department. At least one tipster indicated that the alleged traffickers regularly posted about their illicit dealings on Snapchat.

In spring 2020, a cooperating defendant told the Amarillo Police Department’s Narcotics Unit that a group calling itself “Hogg Life,” a Crips gang, trafficked in marijuana. The cooperating defendant said dealers located in Texas mailed currency to a supplier in California in exchanged for narcotics, which were shipped to them through the U.S. Postal Service and FedEx.

The cooperating defendant confirmed the operation was facilitated through Snapchat and identified several dealers’ accounts. He also identified the account belonging to the California supplier, who he said branded his narcotics with “Dank of America.”  

Shortly thereafter, an undercover agent posing as a buyer initiated Snapchat conversations with local Amarillo dealers. Videos and images captured from their accounts show the cultivation, packaging, and advertisement of large quantities of marijuana, psilocybin mushrooms, and other THC products.  The local “Hogg Life” gang members allegedly sold marijuana and THC products with their own brand name, “No Boof.” 

Both the supplier and the dealer allegedly flaunted their drug proceeds, frequently posting about luxury travel and dining, exotic vehicles, designer clothing and jewelry, and adult entertainment.

Those charged include:

• Demarcus Dave Grabert, aka “Rackz,” 24, charged with one count of conspiracy to distribute controlled substances, two counts of distribution of Psilocin, one count of distribution of marijuana, and one count of possession with intent to distribute marijuana.
• Grant Leonard Glover, 33 charged with one count of conspiracy to distribute controlled substances, one count of distribution of psilocin, and one count of distribution of marijuana.
• Tremaine Devante Watson, aka “T-watt,” 29, charged with one count of conspiracy to distribute controlled substances, one count of distribution of psilocin, one count of distribution of marijuana, and one count of possession with intent to distribute marijuana.
• Ashton Andrew Burns, aka “Trayo,” 31, charged with one count of conspiracy to distribute controlled substances and possession of a firearm by a prohibited person.  
• Doshon Lee Johnson, aka “Nolia Boy Tat,” 24, charged with one count of conspiracy to distribute controlled substances and one count of distribution of psilocin
• Andre Shemar Lewis, aka “30,” 25, charged with one count of conspiracy to distribute controlled substances and one count of possession with intent to distribute marijuana
• Chandler Geveon Smith, aka “Lil Chan,” 23, charged with one count of conspiracy to distribute controlled substances
• Davona Traveil Carter, 28, charged with one count of conspiracy to distribute controlled substances and one count of possession with intent to distribute marijuana
   

One defendant, whose name remains sealed per court order, is a fugitive.

An indictment is merely an allegation of criminal conduct, not evidence. All defendants are presumed innocent until proven guilty in a court of law.

If convicted, the defendants face up to 40 years prison time.

The U.S. Postal Inspection Service and the Amarillo Police Department conducted the investigation with the assistance of the U.S. Marshals Service. Assistant U.S. Attorney Anna Marie Bell is prosecuting the case.

SENTENCING – HENRY AGUSTIN MORENO

On June 7, Henry Agustin Moreno, 21, was sentenced to 12 years in federal prison for transporting or shipping child pornography. HSI received a tip from Kik that a user in the Dallas area was utilizing the messenger application to distribute child pornography. Agents obtained a search warrant of Moreno’s residence in Irving. Moreno admitted to agents that he downloaded several pornographic files depicting child pornography. He further admitted that he uploaded child pornography in exchange for other videos. This case was investigated by Homeland Security Investigations.  Assistant U.S. Attorney Joseph Magliolo prosecuted the case.

SENTENCING – ESLEVY VARGAS-AVILA

On June 7, Eslevy Vargas-Avila, 31, was sentenced to 22 years in federal prison for two counts of interference with commerce by robbery and two counts of using or brandishing a firearm in furtherance of a crime of violence.  In June 2016, Vargas-Avila and other co-conspirators conducted surveillance of jewelry stores to identify traveling jewelry salesmen.  Vargas-Avila and the co-conspirators violently robbed two traveling salesmen at gunpoint in Tarrant County.  This case was investigated by the FBI, Dallas Police Department, Garland Police Department, Arlington Police Department, and DFW Airport Department of Public Safety.  Assistant U.S. Attorney Keith Robinson prosecuted the case.

SENTENCING – CHRISTOPHER JOEL RAMIREZ

On June 8, Christopher Joel Ramirez, 24, was sentenced to 4 years in federal prison for possession with the intent to distribute a controlled substance.  On September 9, 2019, Ramirez possessed approximately 43 kilograms of heroin to distribute to another individual.  The case was investigated by the DEA.  Assistant U.S. Attorney P.J. Meitl prosecuted the case.

SENTENCING – SALVADOR GOMEZ

On June 4, Salvador Gomez, 24, was sentenced to 15 years in federal prison for conspiracy to possess with intent to distribute a controlled substance.  In October 2020, Gomez negotiated the transaction of methamphetamine with another individual.  Gomez indicated that a co-defendant delivering the methamphetamine would be pretending to perform maintenance on a red truck.  Investigators observed and identified a co-defendant appearing as if he was performing maintenance on the vehicle as Gomez had instructed. Officers searched the vehicle and seized 5.2 kilograms of methamphetamine from the co-conspirator. This case was investigated by the DEA HIDTA.  Assistant U.S. Attorney Laura Montes prosecuted the case.

Ten of the alleged drug dealers arrested in yesterday’s “Operation 50/50 Love” have been federally charged with conspiracy to distribute cocaine and other drug crimes, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.

The operation – which involved more than 400 agents from the FBI, Dallas Police Department, DEA, and ATF – was announced at a press conference Thursday. Over the course of the investigation, law enforcement seized 36 weapons, more than $58,000 cash, six vehicles, and more than 18 kilograms of drugs, including suspected powder cocaine, crack cocaine, heroin, methamphetamine, marijuana, and PCP.

Defendant initial appearances began Friday morning.

According to court documents unsealed today, a number of defendants allegedly used so-called “trap room” on Meyers Street in Park Row, one of the most consistently violent areas in the city of Dallas, to distribute drugs.

The defendants – many of them gang members known for their involvement in various criminal activities, from illegal weapons trafficking to aggravated assault – operated out of an apartment complex made up of parallel two-story buildings. 

Each trap room sold a specific type of controlled substance, and was equipped with a counter where sellers cut, packaged, and distributed drugs. Occasionally, when they ran low, sellers would “re-up” with controlled substances stored in vehicles parked on the property.  For a small fee, dealers permitted customers to use drugs in a “party” unit onsite.

Competing factions dealt cocaine and other narcotics out of the “left side” and “right side” of the apartments, but were known to do so without retribution against the opposite side. Occasionally, when one side unexpectedly ran out of drugs, the opposing side would “loan” them drugs to sell. At one point, the “right side” permitted the “left side” to operate out of the “right side” due to a shooting at a trap house on the “left side.”  

To secure drugs and maintain control, sellers on the “left side” possessed firearms, which they often kept in plain view near the drug counter.

“Like many cities across the country, Dallas is bracing for a surge in violent crime this summer. Violence almost always spikes in the summer months. But the chaos and frustration surrounding the pandemic has only made things more unpredictable and more volatile,” Acting U.S. Attorney Shah said during Thursday afternoon’s press conference (watch here). “The agencies and the people here today analyzed which areas and identified which people and groups were the drivers of violent crime, the types of crime that devastate communities, and then took decisive action against those individuals…  The law enforcement action you saw today actually serves two purposes: first, to take some of our city’s most violent criminals off the streets, but also, to signal to the rest of the city that the feds are watching, we’re working with Dallas Police Department, and we’re ready to take action. Our efforts to stop violent crime in this city are only starting.”

“Fighting violent crime is a responsibility that we all share, and the Dallas FBI is proud to work alongside the Dallas Police Department, DEA, ATF and others as we deploy our collective strength to ensure the safety and security of our neighborhoods,” said FBI Dallas Special Agent in Charge Matthew J. DeSarno. “This FBI Dallas Safe Streets Task Force investigation combined traditional law enforcement techniques with intelligence resources which led to Thursday’s successful operation to remove criminal elements from our streets and protect the residents of Dallas.”

“The message today for the residents of Dallas is simple: the Dallas Police Department is not alone in keeping our community safe. The Dallas Police Department is not alone in weeding the criminal element off of our streets and the Dallas Police Department is not alone in seeding our communities with hope,” said Dallas Police Chief Eddie Garcia.

Some defendants were charged via indictment, others via criminal complaint.

Those charged via indictment include:

• Sataurus Joe Jackson, aka “Slicc,” charged  with conspiracy to possess with intent to distribute a controlled substance
• Ardairus DeQuall Vatin, aka “Decc,” charged with conspiracy to possess with intent to distribute a controlled substance and possession with intent to distribute cocaine base (crack cocaine)
• Antuan Fulce, aka “Fatboy” or “Big Homie,” charged with conspiracy to possess with intent to distribute a controlled substance and possession with intent to distribute cocaine base
• Daymion Savannah-Womack, aka “Boulevard,” charged with conspiracy to possess with intent to distribute a controlled substance and possession with intent to distribute marijuana
• Terry Lee Hicks, charged with conspiracy to possess with intent to distribute a controlled substance and possession with intent to distribute cocaine base
• Exie Denise Alexander, charged with conspiracy to possess with intent to distribute a controlled substance and possession with intent to distribute cocaine base
• Aretha Lashun Minter, aka “Shun,” charged with conspiracy to possess with intent to distribute a controlled substance

Those charged via criminal complaint include:

• David Antwon Ricks, aka "Coogi," charged with possession with intent to distribute cocaine base
• Mark Antony White, charged with possession with intent to distribute cocaine
   

Additional name(s) will become available as they are unsealed by the court.

Indictments and complaints are merely allegations of criminal conduct, not evidence. All defendants are presumed innocent until proven guilty in a court of law.

If convicted, they face up to 20 years per count in federal prison.

The Federal Bureau of Investigation’s Dallas Safe Streets Task Force, along with the Dallas Police Department, headed up the investigation, with assistance from the Drug Enforcement Administration’s Dallas Field Division and the Bureau of Alcohol, Tobacco, Firearms & Explosives’ Dallas Field Division. Assistant U.S. Attorneys Lindsey Beran and Nicole Dana are prosecuting the case.

A west Texas man was sentenced today to 365 months in federal prison for abducting a 9-year-old girl from a birthday party, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.

Damien Dre Gonzales, 27, of Levelland, Texas pleaded guilty in February to one count of kidnapping.  He was sentenced on Thursday by U.S. District Judge James Wesley Hendrix.

According to plea papers, Mr. Gonzales admitted to abducting a 9-year old girl at a birthday party in Levelland, Texas to engage in illicit sexual intercourse.

During the birthday party in August 2020, a woman began choking and most of the attendees went to assist with her sudden health emergency.  While the minor’s father was attending to the woman, Mr. Gonzales lured the 9-year-old away by asking for her help carrying alcohol to his vehicle. Mr. Gonzales encouraged the girl to get inside the vehicle and then he drove away.

The girl’s disappearance set off a frantic search by her family and those at the birthday party.  They notified law enforcement and replayed home surveillance footage that showed the 9-year-old leaving with Mr. Gonzales.

About that same time, the Levelland Police Department received a report of a vehicle parked in the middle of the street several miles from the location of the birthday party.  Mr. Gonzales hit a residential mailbox and stopped in the road.  While in the car, Mr. Gonzales sexually assaulted the girl by removing her clothes and touching her.

When law enforcement arrived on the scene to investigate the parked car, they discovered the girl inside. Officers noticed that Mr. Gonzales’ jeans were unzipped, and his belt was unbuckled.  Inside Mr. Gonzales’ car was an open box of condoms sitting in the passenger seat and one condom was missing from the box.

The victim was immediately reunited with her parents and provided psychological and medical support.

The FBI Lubbock Resident Agency, Levelland Police Department, and Hockley County Sheriff’s Office conducted the investigation.  Assistant U.S. Attorney Callie Woolam prosecuted the case.

The thirteenth Reagor Dykes Auto Group employee was sentenced for her role in the auto group’s floor plan fraud scheme, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.

Andrea Kate Phillips, 40, pleaded guilty in January to misprision of a felony.  On Tuesday, she was sentenced to 4 years’ probation and ordered to pay $40,254,297.72 in restitution by U.S. District Judge Matthew J. Kacsmaryk.

In plea papers, Ms. Phillips, an accounting associate and office manager at Reagor Dykes Plainview LP (a Ford store in Plainview, Texas) admitted the auto group participated in a fraudulent floor plan fraud scheme.

Ms. Phillips admitted that the auto group routinely sold vehicles “out of trust” – meaning that they failed to repay lenders within seven days of selling the vehicle financed by that lender.

Just before the lender conducted audits, Ms. Phillips admitted she routinely would create documents falsifying vehicles sales dates on official paperwork to make it appear as though the vehicle had sold within the prior seven days and was not yet out of trust.

Ms. Phillips is the thirteenth RDAG employee sentenced to more than 30 years combined in federal prison for the dummy flooring and check kiting scheme.  Reagor Dykes employees previously sentenced include:

• Diana Urias, an office manager in Reagor Dykes’ used car mall in Levelland, pleaded guilty to conspiracy to commit bank fraud and was sentenced to 2 years in federal prison and ordered to pay $19,335,901.10 in restitution, joint and severally.
• Sheila Miller, an RDAG group controller, pleaded guilty to conspiracy to commit bank fraud and was sentenced to 27 months in federal prison and ordered to pay $19,335,901.10 in restitution, joint and severally.
• Paige Johnston, an office manager in Reagor Dykes’ Chevrolet store in Floydada, pleaded guilty to conspiracy to commit wire fraud and was to 27 in federal prison and ordered to pay $40,254,297.72 in restitution, joint and severally.
• Lindsay Williams, and RDAG group accounting manager, pleaded guilty to conspiracy to commit bank fraud and was sentenced to 27 months in federal prison and ordered to pay $19,335,901.10 in restitution, joint and severally.
• Sherri Wood, an office manager at Reagor Dykes’ Ford store in Plainview, pleaded guilty to conspiracy to commit wire fraud and was sentenced to 30 months in federal prison and ordered to pay $40,254,297.72 in restitution, joint and severally.
• Pepper Rickman, an accounting controller at Reagor Dykes’ Toyota store in Plainview, pleaded guilty to conspiracy to commit wire fraud and was sentenced to 4 years in federal prison and ordered to pay $40,254,297.72 in restitution, joint and severally.
• Brad Fansler, an RDAG group administrative director, pleaded guilty to conspiracy to commit wire fraud and was sentenced to 42 months in federal prison and ordered to pay $40,254,297.72 in restitution, joint and severally.
• Ashley Dunn, executive assistant to the CEO, pleaded guilty to conspiracy to commit bank fraud and was sentenced to 30 months in federal prison and ordered to pay $19,335,901.10 in restitution, joint and severally.
• Whitney Maldonado, an office manager at Reagor Dykes’ Mitsubishi store in Lubbock, pleaded guilty to conspiracy to commit wire fraud was sentenced on 27 months in federal prison and ordered to pay $40,254,297.72 in restitution, joint and severally.
• Elaina Cabral, an office manager at Reagor Dykes’ Toyota store in Plainview, pleaded guilty to conspiracy to commit wire fraud and was sentenced to 27 months in federal prison and ordered to pay $40,254,297.72 in restitution, joint and severally.
• Mistry Canady, an office manager at Reagor Dykes’ Ford store in Lamesa, pleaded guilty to conspiracy to commit wire fraud and was sentenced to 2 years in federal prison and ordered to pay $40,254,297.72 in restitution, joint and severally.
• Wesley Neel, RDAG Safety & Compliance Manager, pleaded guilty to conspiracy to commit wire fraud and was sentenced to 30 months in federal prison and ordered to pay $40,254,297.72 in restitution, joint and severally.

Steven Reinhart, RDAG Legal Compliance Director, and Shane Smith, RDAG CEO, both have pleaded guilty and are awaiting sentencing. Bart Reagor, owner of RDAG, is scheduled for trial in October.

The Federal Bureau of Investigation and Internal Revenue Services - Criminal Investigation Division conducted the investigation.  Assistant U.S. Attorneys Joshua Frausto, Jeffrey Haag, and Amy Burch prosecuted the case.

A Wichita Falls man who plotted to blow up a data center in Virginia pleaded guilty Wednesday to malicious attempt to destroy a building with an explosive, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.

Seth Aaron Pendley, 28, was arrested in April after attempting to obtain an explosive device from an undercover FBI employee in Fort Worth. He entered his guilty plea today before U.S. Magistrate Judge Hal R. Ray, Jr.

“Due in large part to the meticulous work of the FBI’s undercover agents, the Justice Department was able to expose Mr. Pendley’s twisted plot and apprehend the defendant before he was able to inflict any real harm,” said Acting U.S. Attorney Prerak Shah. “We may never know how many tech workers’ lives were saved through this operation – and we’re grateful we never had to find out. Bringing to justice domestic extremists remains one of the Department’s top priorities.”

FBI Dallas Special Agent in Charge Matthew J. DeSarno said, “The FBI thoroughly investigates all credible threats, and The North Texas Joint Terrorism Task Force acted quickly based on information received from a concerned citizen. The defendant sought to cause destruction with an explosive and investigators devised a strategy to disrupt the threat while keeping the public safe from harm. We ask the public to stay vigilant and to continue reporting suspicious or threatening behavior to law enforcement.”

In plea papers, Mr. Pendley admitted that he disclosed his plan to blow up a prominent tech company’s data center to a confidential human source via Signal, an encrypted messaging app, in January.  

In late February, he sent the source a list of data center addresses and said he hoped a successful attack could “kill off about 70% of the internet.”  When the source offered to help him obtain C4 explosives to use in the attack, Mr. Pendley responded, “F*** yeah.”

Mr. Pendley then showed the source a hand-drawn map of a data center on Smith Switch Road in Virginia, featuring proposed routes of ingress and egress at the facility. He later described how he planned to disguise his car to evade detection by law enforcement.

In late March, the confidential source introduced Mr. Pendley to an individual who he claimed was his explosives supplier. In actuality, the man was an undercover FBI employee.

In recorded conversations, Mr. Pendley allegedly told the undercover employee he planned to attack web servers that he believed provided services to the FBI, CIA, and other federal agencies.

“The main objective is to f*** up the Amazon servers,” he said, adding that he hoped to anger “the oligarchy” enough to provoke a reaction that would convince the American people to take action against what he perceived to be a “dictatorship.”

During that same conversation, Mr. Pendley claimed to have been present at the Jan. 6 attack on the U.S. Capitol. He said that although he did not enter the building, he came prepared with a sawed off AR rifle, which he left in his car.

On April 8,  Mr. Pendley again met with the undercover FBI employee to pick up what he believed to be explosive devices. (In actuality, however, the undercover gave Mr. Pendley inert devices.) After the agent showed Mr. Pendley how to arm and detonate the devices, the defendant loaded them into his car. He was then arrested.

A subsequent search of his residence in Wichita Falls turned up an AR-15 receiver with a sawed off barrel, a pistol painted to look like a toy gun, masks, wigs, and notes and flashcards related to the planned attack.

Mr. Pendley now faces between five and 20 years in federal prison. His sentencing hearing has been set for Oct. 1 before U.S. District Judge Reed C. O’Connor.

The FBI’s Dallas Field Office, Wichita Falls Resident Agency and FBI’s North Texas Joint Terrorism Task Force conducted the investigation. Assistant U.S. Attorney Robert J. Boudreau of the Northern District of Texas is prosecuting the case with the assistance of Trial Attorney Alexandra Hughes of the National Security Division.

 

A home security technician was sentenced today to 52 months in federal prison for repeatedly hacking into customers’ video feeds, announced Acting U.S. Attorney for the Northern District of Prerak Shah.

Telesforo Aviles, a 35-year-old former ADT employee, pleaded guilty to computer fraud in January. He was sentenced today by U.S. District Judge Brantley Starr.

“This deliberate and calculated invasion of privacy is arguably more harmfrul than if I had installed no security system and my house had been burglarized,” a female victim told the court in an impact statement. "This sick and corrupt individual's actions will have a lasting emotional and mental toll on me." 

According to plea papers, Mr. Aviles admits that contrary to company policy, he routinely added his personal email address to customers’ “ADT Pulse” accounts, giving himself real-time access to the video feeds from their homes. In some instances, he claimed he needed to add himself temporarily in order to “test” the system; in other instances, he added himself without their knowledge. 

Mr. Aviles took note of which homes had attractive women, then repeatedly logged into these customers’ accounts in order to view their footage for sexual gratification, he admits. Plea papers indicate he watched numerous videos of naked women and couples engaging in sexual activity inside their homes.

Over a four and a half year period, Mr. Aviles secretly accessed roughly 200 customer accounts more than 9,600 times without their consent, he admits. 

The Federal Bureau of Investigation’s Dallas Field Office conducted the investigation. Assistant U.S. Attorney Sid Mody prosecuted the case.

A 38-year-old man who robbed a cell phone store at gunpoint has been found guilty of robbery, carjacking, and multiple gun crimes, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.

After just an hour of deliberation, a federal jury in Dallas on Friday convicted Michael Tremaine Schexnayder of one count of interference with commerce by robbery, one count of carjacking, one count of brandishing a firearm during a crime of violence, and one count of possession of a firearm by a convicted felon.

According to evidence presented at trial, around 10:45 a.m. on July 16, 2019, Mr. Schexnayder entered a Grand Prairie T-Mobile store, armed with a small black pistol. After milling around for a few moments, he suddenly approached two employees and a customer, pointing his gun in their faces.  He demanded they hand over personal possessions – cell phones, watches, cash, and car keys – and then ordered staff members to open the safe in the back of the store.

Terrified, one of the employees, an assistant store manager, explained that the safe was on a time delay, and would not open for a period of several minutes after she input the code. The employee testified that Mr. Schexnayder, who apparently did not believe her, grew agitated, and forced her instead to empty the till into a garbage bag. He then demanded that the same employee surrender her car keys and describe her vehicle, a boxy white Toyota Scion.

With their property in tow, he fled the store.

Employees and customers then barricaded themselves in the back of the store and the assistant manager dialed 911. Within moments of police’s arrival, the assistant manager noticed her vehicle was missing, as was her iPhone. 

With the assistant store manager’s permission, officers quickly began tracking her phone, located the vehicle, and gave chase. An officer observed the driver run into a wooded area as the Toyota rolled to a stop. Officers later found Mr. Schexnayder lying in the woods, dressed in the same clothing robbery witnesses had described. A short distance away, they found a small black pistol stashed under a pile of wood.

Mr. Schexnayder now faces up to 52 years in federal prison. His sentencing is set for October 15, 2021.

The Bureau of Alcohol, Tobacco, Firearms & Explosives’ Dallas Field Division conducted the investigation. Assistant U.S. Attorneys Gary Tromblay and Lindsey Beran are prosecuting the case. U.S. District Judge Sam A. Lindsay presided over the trial.

The brother of capital murder suspect Yaser Said has been sentenced to 12 years in federal prison for helping the “10 Most Wanted” suspect evade capture for more than 12 years, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.

In February, a federal jury in Fort Worth found Yassein Abdulfatah Said, Yaser Said’s 59-year-old brother, guilty of conspiracy to conceal a person from arrest, concealing a person from arrest, and conspiracy to obstruct an official proceeding. Yassein Said was sentenced today by U.S. District Judge Reed C. O’Connor.

Judge O’Connor varied upwardly from the sentencing guidelines, writing in a court filing, “the guidelines also do not adequately take into account the extravagant lengths that Defendant and his co-defendant, and perhaps others, went to harbor and conceal Yaser Said… Defendant’s efforts resulted in incalculable resources spent by law enforcement, both locally, nationally, and internationally.”

Yassein Said’s co-conspirator, his 32-year-old nephew Islam Said, pleaded guilty to the same charges prior to trial and was sentenced in April to 10 years in federal prison.

According to evidence presented at Yassein Said’s trial, Mr. Said sheltered his brother from arrest in an attempt to subvert the administration of justice.

Yaser Said had been a fugitive from justice since New Year’s Day 2008, when he allegedly murdered his teenage daughters, Amina and Sarah. According to law enforcement, he shot the girls to death inside his taxicab and abandoned their bodies inside the vehicle. He was captured by the FBI’s Violent Crimes Task Force in August 2020, and is currently in state custody.

Conspiring with his nephew, Yaser’s son Islam, Yassein Said helped harbor Yaser inside an apartment in Bedford, Texas, where a maintenance worker spotted Yaser on Aug. 14, 2017.

He later harbored his brother inside a home in Justin, Texas. On Aug. 25, 2020 FBI agents observed Mr. Said and his nephew deliver grocery bags to the residence, then followed the men to a shopping center 20 miles away, were they dumped trash retrieved from the home.

“Yassein Said prioritized the comfort of his brother, an alleged murder, over justice for his nieces, two innocent teenagers on the brink of adulthood,” said Acting U.S. Attorney Prerak Shah. “No sentence can bring Sarah and Amina back, but we are hopeful that seeing justice served brings a measure of comfort to those who loved these two young souls.”

“Yassein Said protected his brother and accused murderer, Yaser Said, by providing aid and comfort to him while he was a fugitive. By taking the law into his own hands, Yassein Said delayed justice for the victims, Amina and Sarah, and their family,” Matthew DeSarno, Special Agent in Charge of FBI’s Dallas Field Office, said after the trial.

The Federal Bureau of Investigation’s Dallas Field Division and the Irving Police Department conducted the investigation with the assistance of U.S. Customs & Border Patrol, the Dallas Police Department, the Garland Police department, the Grand Prairie Police Department, and the Texas Department of Public Safety. Assistant U.S. Attorneys Tiffany H. Eggers and Errin Martin are prosecuting the case with counsel from appellate Assistant U.S. Attorney Jonathan Bradshaw.

GUILTY PLEA – JAIME ULIZE CARCAMO

On June 1, Jaime Ulize Carcamo, 33, plead guilty to conspiracy to launder monetary instruments. During a DEA investigation, law enforcement learned that Carcamo received drug proceeds from the sale of controlled substances and transferred those proceeds to multiple individuals in Mexico.  Carcamo and his co-conspirators conducted 134 wire transactions totaling $121,727 to individuals in Mexico, earning a fee for each transaction.  Carcamo now faces up to 20 years in federal prison for his crimes.  The DEA conducted the investigation.  Assistant U.S. Attorney John Kull prosecuted the case.

GUILTY PLEA – ISRAEL COOPER

On June 1, Israel Cooper, plead guilty to possession of a firearm by a user of a controlled substance.  In October 2019, Cooper was arrested by law enforcement with a .45 pistol.  He admitted to law enforcement that he used marijuana prior to the offense.  Cooper now faces up to 10 years in federal prison for his crimes.  The ATF and the Dallas Police Department conducted the investigation.  Assistant U.S. Attorney P.J. Meitl is prosecuting the case.

SENTENCING – MICHAEL RACHAEL MCCOY

On June 2, Michael Rachael McCoy, 57, was sentenced to 57 months in federal prison for aiding and abetting the possession with the intent to distribute cocaine. In the early morning of January 30, 2020, DEA agents executed a search warrant at a Dallas residence.  As law enforcement entered the home, they encountered McCoy with a 9mm handgun in his coat pocket.  Agents continued to search the residence and located cocaine packaged for resale.  The DEA conducted the investigation.  Assistant U.S. Attorney Suzanna Etessam prosecuted the case.

GUILTY PLEA – ISAAC LEONAR SANCHEZ CERVANTES

On June 3, Isaac Leonar Sanchez Cervantes, 25, plead guilty to possession of a firearm by an illegal alien.  On March 25, 2020, Sanchez Cervantes was stopped by law enforcement for trespassing on a utility site that was under construction.  Sanchez told officers that he had been cooped up with his girlfriend and had gone to “smoke a bowl and chill.”  Law enforcement searched Sanchez Cervantes’ vehicle and located two 9mm pistols, two pairs of handcuffs, and approximately 275 rounds of ammunition.  Sanchez Cervantes now faces up to 10 years in federal prison for his crimes.  The ATF and the Irving Police Department conducted the investigation.  Assistant U.S. Attorney Walt Junker is prosecuting the case.

GUILTY PLEA – JUVENAL DELBOSQUE

On May 25, Juvenal Delbosque, 23, plead guilty to conspiracy to possess with intent to distribute methamphetamine.  On July 1, 2019, Delbosque and a co-conspirator received a shipment of 62 kilograms of methamphetamine which had been transported inside tires.  Once it was received by Delbosque, he placed it in trash bags for further distribution.  He faces up to life in federal prison for his crimes.  The FBI, DEA, IRS, Secret Service, Dallas Police Department, and the IRS.  Assistant U.S. Attorney George Leal is prosecuting the case. 

An oncologist has been sentenced to 20 years in federal prison for running a pill mill, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.

Arrested in DEA Dallas’ “Operation Wasted Daze,” Dr. Caesar Mark Capistrano, 61, was convicted at trial in January three counts of conspiracy to dispense a controlled substance and two counts of possession with intent to distribute a controlled substance. He was sentenced Thursday by U.S. District Judge Reed C. O’Connor. 

“Doctors who run pill mills knowingly profit off of vulnerable people’s addictions,” said Acting U.S. Attorney Prerak Shah. “The Justice Department is determined to prosecute doctors who funnel powerful prescription drugs onto our streets. We will do everything within our power to curb the opioid epidemic.”

“Using one’s trusted status as a medical professional for unlawful acts cannot go unpunished,” stated Eduardo A. Chávez, Special Agent in Charge of the DEA’s Dallas Field Division. “The Dallas DEA will always seek justice against those who take advantage of individuals, especially ones who suffer from addiction.”

According to evidence presented at three different trials conducted in early 2021, Dr. Capistrano and his associate, 36-year-old Dr. Tameka Lachelle Noel, wrote prescriptions for hydrocodone, oxycodone, alprazolam, carisoprodol, zolpidem, phentermine, and promethazine with codeine, knowing the drugs would be diverted to the streets for illicit use.

Dr. Capistrano and Dr. Noel, assisted by 48-year-old clinic manager Shirley Ann Williams, used a network of recruiters to enlist individuals from the community and local homeless shelters to pose as “patients.”  Recruiters paid each “patient” a small fee, usually $50 to $200 cash, to obtain controlled substance prescriptions from Dr. Capistrano and Dr. Noel. 

The recruiters – who paid the clinic based in part on the amount of drugs prescribed – then filled the prescriptions at various complicit pill mill pharmacies and diverted the drugs for resale on the streets. The pharmacists charged the recruiters between $200 and $800 per prescription, filling hundreds and hundreds of prescriptions for a fee, according to evidence presented at trial.

At the clinic, many of the “patients” were seen not by the doctors, but by Ms. Williams, who possessed neither a medical license nor a DEA registration. After a perfunctory conversation with the “patient,” Ms. Williams allegedly coordinated with Dr. Capistrano and Dr. Noel to prescribe dangerous drugs without legitimate medical purpose.  In order to make the prescriptions appear legitimate, the doctors occasionally included prescriptions for non-controlled substances, such as antibiotics and mineral ice.

Over a nine-year span, Dr. Capistrano issued prescriptions for more than 524,000 doses of hydrocodone, 430,000 doses of carisoprodol, 77,000 doses of alprazolam, and 2.07 million doses of promethazine with codeine. Over seven years, Dr. Noel issued prescriptions for more than 200,000 doses of hydrocodone, 55,000 doses of carisoprodol, 14,000 doses of alprazolam, and 450,000 doses of promethazine with codeine.

Often, the doctors prescribed multiple medications simultaneously and at the highest dosages available.

Medical professionals convicted in the scheme include:

• Caesar Mark Capistrano, medical doctor
  Convicted at trial on 1/28/2021 of three counts of conspiracy to dispense a controlled substance and two counts of possession with intent to distribute a controlled substance and was sentenced to 20 years in federal prison
   
• Tameka Lachelle Noel, medical doctor
  Pleaded guilty on 11/16/2020 to conspiracy to dispense a controlled substance and was sentenced to eight years federal prison
   
• Ngozika Tracey Njoku, nurse practitioner
  Pleaded guilty on 11/20/2020 to conspiracy to dispense a controlled substance and was sentenced to six months in federal prison
   

Clinic staff convicted in the scheme include:

• Shirley Ann Williams, clinic office manager
  Pleaded guilty on 11/18/2020 to conspiracy to disperse a controlled substance and was sentenced to six years in federal prison
   
• Latonya Ann Tucker, office staff
  Pleaded guilty on 11/20/2020 to  conspiracy to distribute a controlled substance and was sentenced to five years federal prison

 

Pharmacists convicted in the scheme include:

• Wilkinson Oloyede Thomas, Calvary Pharmacy
  Convicted at trial on 1/28/2021 of three counts of conspiracy to dispense controlled substances and one count of possession with intent to distribute controlled substances 
   
• Christopher Kalejaiye Ajayi, Remcare Pharmacy
  Convicted at trial on 3/2/2021 of three counts of conspiracy to dispense controlled substances, and two counts of possession with intent to distribute controlled substances
   
• Bartholomew Anny Akubukwe, Beco Pharmacy
  Pleaded guilty on 11/18/2020 to conspiracy to dispense a controlled substance and was sentenced to 11 years in federal prison
   
• Nedal Helmi Naser, Brandy Pharmacy
  Pleaded guilty on 3/16/2021 to conspiracy to dispense a controlled substance
   
• Ethel Oyekunle-Bubu, Ethel’s Pharmacy
  Convicted at trial on 1/28/2021 of three counts of conspiracy to dispense a controlled substance and two counts of possession with intent to distribute controlled substances
   

Recruiters convicted in the scheme include:

• Ritchie Dale Milligan, Jr
  Pleaded guilty on 11/18/2020 to conspiracy to distribute a controlled substance and was sentenced to eight years federal prison
   
• Wayne Benard Kincade
  Pleaded guilty on 11/16/2020 to conspiracy to distribute a controlled substance
   
• Katie Lorane Parker
  Pleaded guilty on 11/16/2020 to conspiracy to distribute a controlled substance and was sentenced to four years in federal prison
   
• Cynthia Denise Cooks
  Pleaded guilty on 11/25/2020 to conspiracy to distribute a controlled substance and was sentenced to five years federal prison
   

The DEA Dallas Field Division’s Fort Worth Office conducted the investigation, with the assistance of Homeland Security Investigations, IRS – Criminal Investigation, the U.S. Marshals Service, the U.S. Postal Inspection Service, the Parker County Sheriff’s Office, and the Fort Worth Police Department.  The DEA’s Fort Worth Tactical Diversion Squad is comprised of DEA agents and task force officers from the Arlington Police Department, the Ellis County Sheriff’s Office, the North Richland Hills Police Department, the Benbrook Police Department, the Granbury Police Department, the Tarrant County Sheriff’s Office, and the Parker County Sheriff’s Office. This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. Assistant U.S. Attorneys Laura Montes and Shawn Smith are prosecuting the case.

 

A Dallas man pleaded guilty Wednesday afternoon to federal hate crime charges, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah and Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division.

Daniel Jenkins, 22, pleaded guilty to one hate crime count, one hate crime conspiracy count, kidnapping, carjacking, and one count of using a firearm during a crime of violence. He is the last of four defendants to plead guilty to charges stemming from a scheme that targeted gay men on the dating app Grindr.

“These defendants brutalized multiple victims, singling them out due to their sexual orientation. We cannot allow this sort of violence to fester unchecked,” said Acting U.S. Attorney Prerak Shah. “The Department of Justice is committed to prosecuting hate crimes. In the meantime, we urge dating app users to remain vigilant. Unfortunately, predators often lurk online.”  

"The Department of Justice and the Civil Rights Division are committed to confronting the scourge of hate-based violence gripping communities across our nation,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “We denounce hate-based violence in all of its forms, including violence targeting individuals based on sexual orientation and gender identity. We will continue to diligently investigate and prosecute violent, bias-motivated crimes to the fullest extent. As noted by Attorney General Garland, we stand ready to use every tool in our arsenal to address the rise in hate and we will work to hold perpetrators of hate-motivated violence accountable."

“Investigating hate crimes is one of the FBI's highest priorities because of the devastating impact they have on families and communities. We are committed to the pursuit of offenders and holding them accountable for perpetrating these harmful crimes,” said FBI Dallas Special Agent in Charge Matthew DeSarno. “No one should have to live in fear of violence because of who they are, where they are from or what they believe. We will continue working with our law enforcement and community partners to detect and prevent violent incidents motivated by hate or bias. We also urge the public to report any suspected hate crimes to the FBI and local law enforcement.”

According to court documents filed in connection with his guilty plea, Mr. Jenkins admitted that he and his co-conspirators used Grindr, a social media dating platform used primarily by gay men, to lure gay men to a vacant apartment and other areas in and around Dallas for robbery, carjacking, kidnapping, and hate crimes over the course of approximately a week in December 2017.

Mr. Jenkins admitted that he and his co-conspirators held victims against their will; pointed a handgun at victims and took their personal property, including their vehicles; and traveled to local ATMs to withdraw cash from the victims’ accounts. He further admitted that he and his co-conspirators physically injured at least one victim and taunted the victims based upon the co-conspirators’ perception of the men’s sexual orientation. 

In March 2019, Mr. Jenkin’s co-conspirator Michael Atkinson pleaded guilty to conspiracy and kidnapping charges in connection with this case. In December 2019, Daryl Henry and Pablo Ceniceros-Deleon pleaded guilty to a federal hate crime and other charges in connection with this case. Sentencing for these three defendants is set for June 23.  

Mr. Jenkins’ sentencing is set for Oct. 6. Pursuant to the terms of the plea agreement, he faces a sentence of up to 26 years in prison.

The FBI’s Dallas Field Office conducted the federal investigation; a separate criminal investigation is being conducted by the Dallas Police Department. Special Litigation Counsel Rose E. Gibson, Trial Attorney Kathryn Gilbert of the Justice Department’s Civil Rights Division, and Assistant U.S. Attorney Nicole Dana of the Northern District of Texas are prosecuting the case.

 

DEL RIO – U.S. District Judge Alia Moses sentenced 40-year-old Ramon Antonio Yanez-Gonzalez, aka “Junior,” of Guadalajara, Mexico to 235 months in federal prison today for distributing about 21 kilograms of methamphetamine and money laundering.

On July 31, 2018, Yanez-Gonzalez pleaded guilty to one count of conspiracy to possess with intent to distribute methamphetamine.  According to court documents, from January 2011 to April 2015, the defendant conspired with others to smuggle methamphetamine into the Eagle Pass area from Mexico and distribute it to San Antonio, Austin and Dallas.  On December 12, 2019, Yanez-Gonzalez pleaded guilty to one count of conspiracy to launder monetary instruments that was transferred from the Northern District of Texas.  By pleading guilty to that charge, Yanez-Gonzalez admitted that he laundered proceeds from drug sales in December 2012.

During this investigation, authorities seized approximately 17 kilograms of methamphetamine attributable to Yanez-Gonzalez and his organization.

U.S Attorney Ashley C. Hoff of the Western District of Texas, Acting U.S. Attorney Prerak Shah of the Northern District of Texas and Special Agent in Charge Daniel C. Comeaux of the Drug Enforcement Administration’s Houston Field Office made today’s announcement.

Yanez-Gonzalez has remained in federal custody since his arrest on August 28, 2017, in Las Vegas, Nevada.

The DEA together with the FBI, Homeland Security Investigations (HSI), U.S. Border Patrol, Val Verde County Sheriff’s Office, Dallas Police Department and Garland Police Department conducted this Organized Crime Drug Enforcement Task Forces (OCDETF) investigation named “Operation Guatemala Freeze.”  OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF. 

Assistant U.S. Attorneys Sydni Connell, Sarah Spears and Amy Hail prosecuted this case with assistance from Northern District of Texas Assistant U.S. Attorney George Leal.

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A retired FBI agent who allegedly convinced a Granbury woman she was on “secret probation” and conned her out of roughly $800,000 has been federally charged, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.

William Roy Stone, Jr., 62, was indicted Tuesday on seven counts of wire fraud, one count of wire fraud conspiracy, one count of false impersonation of a federal officer, one count of engaging in monetary transactions in property derived from unlawful activity, and one count of false statements to law enforcement. He made his initial appearance before U.S. Magistrate Judge Rebecca Rutherford on Friday.

According to the indictment, in November 2015, Mr. Stone allegedly convinced his victim, identified in court documents as C.T., that she was under “secret probation” for drug crimes in “Judge Anderson’s court in Austin, Texas.”

He allegedly told the victim that the fictious federal judge had appointed Mr. Stone and another individual to “mentor” and “supervise” C.T., and claimed that her conditions of probation mandated that she report her activities, as well as a list of her assets, to Mr. Stone. Moreover, he said, C.T. was obligated to pay any expenses Mr. Stone incurred while supervising her, and was forbidden from disclosing her probation status to anyone. If she did not comply with the terms of this probation, Mr. Stone said, she would risk imprisonment and the loss of her children.

In order to convince C.T. the probation was real, Mr. Stone allegedly claimed that he had the ability to monitor her cell phone communications, said he discussed C.T.’s probation with a psychiatrist, enlisted another person to leave messages on his own phone purporting to be from the U.S. Drug Enforcement Administration “Intelligence Center,” and even placed “spoof” calls between himself, C.T., and the fictious Judge Anderson. 

He told C.T. that he’d incurred significant expenses traveling to Austin to discuss C.T.’s probation with Judge Anderson, and intimidated her into reimbursing him for expenses associated with those trips. Further, he collected money he claimed was “restitution” for a wronged company which he secretly deposited into his own bank account.  Eventually, he convinced her to hand over large sums of money to purchase a home and cars. At one point, he allegedly proposed to marry her, claiming he would then seek discharge of her probation.

Over the course of several years, C.T. gave Mr. Stone more than $800,000.

“Stone allegedly conned, threatened and stole from his victim, exploiting her trust in law enforcement for his own financial gain. The OIG is committed to holding accountable those who commit this type of conduct,” said Cloey C. Pierce, Special Agent in Charge of the Department of Justice Office of the Inspector General Dallas Field Office. 

An indictment is merely an allegation of criminal conduct, not evidence. Like all defendants, Mr. Stone is presumed innocent until proven guilty in a court of law.

If convicted, he faces up to 178 years in federal prison.

The Texas Rangers and the U.S. Department of Justice Office of Inspector General conducted the investigation with the assistance of the Fort Worth Police Department. Mr. Stone retired from the FBI in October 2015 from the Dallas Field Office.  Assistant U.S. Attorneys Marcus Busch and Katherine Miller are prosecuting the case.

SENTENCING – DIEGO GUTIERREZ PINALES

On May 24, Diego Gutierrez Pinales, 54, was sentenced to 10 years in federal prison for conspiracy to distribute cocaine.  Pinales, a drug trafficking organizations source of supply, had 437 contacts via phone with a co-conspirator from December 2017 to March 2018.  Based on law enforcement’s investigation, Pinales provided 10 kilograms of cocaine to the co-conspirator for further distribution. On one occasion, Pinales met the co-conspirator at a Dallas residence to sell two kilograms of cocaine for $29,000 each.  The DEA conducted the investigation.  Assistant U.S. Attorney John Kull prosecuted the case.

GUILTY PLEA – ADAM GRANT ROBINSON

On May 25, Adam Grant Robinson, 40, plead guilty to bank robbery.  Between October 2018 and December 2018, Robinson committed 11 bank robberies in Garland, Dallas, Richardson, Plano, Corpus Christi, and Austin.  In each of the bank robberies he took money from the bank employees.  Robinson now faces up to 20 years in federal prison for his crimes.  The FBI conducted the investigation.  Assistant U.S. Attorney Shane Read is prosecuting the case.

GUILTY PLEA – ROBERTO ARCHULETA

On May 25, Roberto Antonio Archuleta plead guilty to possession with the intent to distribute Fentanyl.  In August 2020, a Texas State Trooper stopped a vehicle traveling near Greenville, Texas.  Archuleta was driving with Gilberto Lira as his front-seat passenger.  Archuleta consented to the trooper’s search of the vehicle which revealed two gym bags, one which held multiple packages of Fentanyl.  During an interview with law enforcement, Archuleta admitted that he had been paid $2,500 to deliver the opioids to Charlotte, North Carolina.  Archuleta now faces up to 20 years in federal prison for his crimes.  The Texas Department of Public Safety conducted the investigation.  Assistant U.S. Attorney Suzanna Etessam is prosecuting the case.

GUILTY PLEA – RICHARD MANSFIELD BEACHEM

On May 27, Richard Mansfield Beachem, 31, plead guilty to carjacking.  Beachem stole a Nissan Sentra at gunpoint by threatening to kill the driver of the vehicle if he did not give Beachem the car.  As soon as the victim exited the vehicle, Beachem’s accomplice, a juvenile, got into the driver’s seat along with Beachem and they drove away.  Beachem now faces up to 15 years in federal prison for his crimes. The ATF conducted the investigation.  Assistant U.S. Attorney Fabio Leonardi is prosecuting the case.

A Waxahachie nurse practitioner was sentenced yesterday to 20 years in federal prison and ordered to repay more than $52 million in restitution for his role in a health care fraud conspiracy, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.

Trivikram Reddy, 39, pleaded guilty to conspiracy to commit wire fraud in October 2020.  He was sentenced on Tuesday by U.S. District Judge Ada Brown.

“Mr. Reddy engaged in a scheme that defrauded Medicare and private insurance providers out of millions of dollars,” said Acting U.S. Attorney Shah.  “The Justice Department will continue to aggressively prosecute all types of health care fraud to protect the integrity of our health care system and ensure that criminals are held accountable.”

“Health care fraud affects everyone, it causes billions of dollars in losses each year and erodes trust in our health care system,” said Dallas FBI Special Agent in Charge Matthew DeSarno. “Mr. Reddy’s scheme defrauded multiple companies and put the professional reputation of six doctors in jeopardy all to line his own pockets. Along with our law enforcement partners, the FBI will continue to root out fraud in the health care industry and protect the public from illegal schemes.”

“When nurse practitioner Trivikram Reddy stole the identities of physicians to defraud Medicare and other insurers to enrich himself, he violated the basic trust that the public extends to healthcare professionals,” said Special Agent in Charge Miranda L. Bennett of the HHS-OIG Dallas Regional Office.  “Today’s sentence sends a message to corrupt medical professionals that law enforcement will do everything possible to root out all forms of waste, fraud and abuse in our federal health care programs.”

According to court documents, Mr. Reddy, a licensed nurse practitioner, devised a scheme to defraud Medicare, Blue Cross Blue Shield of Texas, Aetna, UnitedHealthcare, Humana, and Cigna.

Mr. Reddy and co-conspirators created false patient bills using the provider numbers of six doctors as the treating physicians on the claims.  All the claims were false and at no time did the six doctors provide billable services to any of Mr. Reddy’s medical clinics.

On June 3, 2019, federal agents served a civil investigative demand at one of Mr. Reddy’s medical clinics. When law enforcement arrived at the site, agents found Mr. Reddy’s staff manufacturing medical records.  Following the encounter, on June 8, Mr. Reddy closed the clinic and terminated his business entity with the Texas Secretary of State.

On June 13, 2019, Mr. Reddy made the first of multiple wire transfers which, in sum, totaled more than $55 million.  A forensic financial analysis directly tied the money to fraudulent health care claims submitted by Mr. Reddy.

Federal agents requested medical records to justify millions of dollars of paid Medicare claims paid between January 2014 and June 2019.  Mr. Reddy and his staff spent the next four months manufacturing fake medical records to turn over to authorities.

This case was investigated by the FBI Dallas Field office and Health and Human Services-Office of the Inspector General (HHS-OIG).  Assistant U.S. Attorney Donna Strittmatter Max and Special Assistant U.S. Attorney Matt Smid prosecuted the case.

Three medical professionals who helped a local hospice agency scam Medicare have been convicted of healthcare fraud, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.

On Monday, a federal jury found Novus Health Services Medical Directors Dr. Mark E. Gibbs and Dr. Laila Hirjee, along with Novus RN Tammie Little, guilty of conspiracy to commit healthcare fraud. 

Additionally, the jury found Dr. Gibbs guilty of two counts of healthcare fraud and one count of obstruction of justice, Dr. Hirjee guilty of three counts of healthcare fraud and one Title 21 drug offense, and Ms. Little guilty of three counts of healthcare fraud. (Dr. Gibbs was acquitted of one of the three health care fraud counts brought by the government.)

According to evidence presented at trial, the defendants helped Novus CEO Bradley Harris defraud Medicare by submitting materially false claims for hospice services, providing kickbacks for referrals, violating HIPAA to recruit beneficiaries, and destroying documents to conceal the fraud from Medicare.

Mr. Harris, who pleaded guilty prior to trial, testified against his former employees.

He told the jury that instead of relying on the expertise of licensed medical professions, he and Novus nurses, including Ms. Little, determined which patients would be admitted to or discharged from hospice care, as well as which drugs and dosages they would receive.

They relied upon Novus doctors, including Dr. Gibbs and Dr. Hirjee, to certify that they had examined these patients face-to-face, when no such examinations had occurred, Mr. Harris testified.

Witnesses also testified that Dr. Hirjee and Dr. Gibbs engaged in the prescription of Schedule II controlled substances, such as morphine and hydromorphone, by pre-signing blank C2 prescriptions and giving those to Brad Harris and others at Novus to let them prescribe controlled substances without any physician oversight. 

As Director of Operations Melanie Murphey testified on day five of trial, “I was the doctor.”

Mr. Harris and the nurses used pre-signed prescription pads, prepared by Dr. Gibbs, Dr. Hirjee, and other Novus doctors, to dispense medications like morphine to patients.   Mr. Harris paid also Dr. Gibbs and Dr. Hirjee kickbacks – disguised as medical directory salaries – to induce them to refer patients to his facilities.

When Medicare suspended payment to Novus over concerns about billing, Mr. Harris, Dr. Gibbs, and others moved patients and employees to a new hospice company and continued to bill Medicare for hospice services. 

In total, Medicare and Medicaid paid the Novus entities approximately $40 million dollars for hospice services before the companies were shut down.

“With today’s guilty verdicts, we are one step closer to bringing this sordid case to a close,” said Acting U.S. Attorney Shah. “These medical professionals behaved unconscionably, allowing Mr. Harris – an accountant – to dictate end-of-life care for suffering patients. The Northern District of Texas will not stand for this sort of misconduct.” 

Dr. Hirjee now faces up to 60 years in federal prison, Dr. Gibbs faces up to 35 years, and Ms. Little faces up to 40 years.

Twelve of their codefendants – Novus CEO Brad Harris, his wife, Novus Vice President of Patient Services Amy Harris, Novus Director of Operations Melanie Murphy, Novus Medical Director Charles Leach, Novus Medical Director Reziuddin Siddique (deceased), Novus Medical Director Syed Aziz, Novus Vice President of Marketing Samuel Anderson, Novus Director of Marketing Slade Brown, Novus RN Jessica Love, Novus triage RN Patricia Armstrong, Novus LVN Taryn Stewart, and Ali Rizvi, the owner of a separate physician home visit company – pleaded guilty to various offenses prior to trial. Dr. Aziz has been sentenced to probation, and the remaining defendants are facing between two and 14 years in federal prison.

The Federal Bureau of Investigation’s Dallas Field Office, the U.S. Department of Health & Human Services Office of Inspector General (HHS-OIG), and the Texas Attorney General’s Medicaid Fraud Control Unit conducted the investigation. Assistant U.S. Attorneys Donna Strittmatter Max, Marty Basu, and Chad Meacham are prosecuting the case with Assistant U.S. Attorneys Stephen Gilstrap, Gail Hayworth, and Brian McKay. Chief U.S. District Judge Barbara M.G. Lynn presided over the trial.

A McKinney man who ran a Ponzi scheme has been sentenced to five years in federal prison and ordered to pay $13 million in restitution to his victims, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.

Patrick O. Howard – owner of Insured Liquidity Partners CGF I, Insured Liquidity Partners CGF II, and Capital Ventures, LLC – pleaded guilty to securities fraud in November 2020. He was sentenced Thursday by U.S. District Judge Jane J. Boyle and taken into custody immediately after the hearing.

In plea papers, Mr. Howard, 49, admitted to running a Ponzi-type scheme, recruiting more than 100 investors to purchase $13 million in membership units for $50,000 apiece.

His companies promised investors 12% annual returns, paid quarterly, and “insured liquidity.”

However, instead of properly investing the money, the companies issued phony account statements and paid any investors who elected to receive their earnings quarterly out of the investments of later investors, rather than out of the earnings of the fund.

Mr. Howard falsely represented himself as a registered investment advisor and claimed his companies saw 20% annual earnings. Promising that investors could not possibly lose money due to insurance that offset poor performance, the defendant induced at least one investor to turn over his entire retirement savings to the fund.

Two victims testified at his sentencing hearing, including one who told the judge she lost her daughter’s college savings after investing with Mr. Howard.

The Federal Bureau of Investigation’s Dallas Field Office and the U.S. Postal Inspection Service conducted the investigation, with a parallel investigation conducted by the U.S. Securities & Exchange Commission. Assistant U.S. Attorney Andrew Wirmani prosecuted the criminal case.

An Austin man who crashed a truck full of undocumented immigrants following a high-speed police chase has been federally charged, announced Acting U.S. Attorney Prerak Shah.

Adrian Vargas-Ladinos, 20, was arrested on May 15, charged via criminal complaint with transportation of illegal aliens. He will make his appearance before U.S. Magistrate Judge John R. Parker on May 18.

According to the complaint, a police officer stopped Mr. Vargas-Ladinos for speeding in Sutton County, Texas on May 15. During the stop, the officer called for backup, at which point Mr. Vargas-Ladinos allegedly sped away, leading police on a chase that lasted almost eight minutes.

He crossed several medians before crashing the truck, causing it to roll over with passengers still in both the cab and bed.

Ten of the passengers – including one woman who was rushed to the ICU with head injuries and two men who were hospitalized with serious injures – were identified as citizens of Honduras, Guatemala, and El Salvador in the United States unlawfully. The hospitalized passengers were treated and have been stabilized. 

Mr. Vargas-Ladinos initially claimed he was merely helping a few immigrants he had encountered in Eagle Pass, Texas during a visit to a friend. He told investigators he could not recall the friend’s name.

He later admitted, however, that a smuggler offered to pay him $25,000 to transport undocumented immigrants to Austin, Texas. A search of his cell phone allegedly confirmed that he was involved in human smuggling.

Mr. Vargas-Ladinos allegedly told law enforcement that based on directions provided by the smuggler, he drove to an abandoned home in Eagle Pass, honked the horn, and allowed the undocumented immigrants into his truck. He then allegedly drove them around a Border Patrol checkpoint in Eagle Pass.

One of his undocumented passengers told law enforcement that when Mr. Vargas-Ladinos realized he was being pulled over, he told the immigrants that he was going to bail out of the vehicle. Two passengers told law enforcement that they were scared during the police chase.

Mr. Vargas-Ladinos allegedly admitted to law enforcement he felt sorry for the undocumented immigrants who were hurt during the crash, but stated that he told them to run away so that they could get to Austin and he could get paid.

A criminal complaint is merely an allegation of wrongdoing, not evidence. Like all defendants, Mr. Vargas-Ladinos is presumed innocent until proven guilty in a court of law.

If convicted, he faces up to 20 years in federal prison on the transportation charge. He has also been charged by Sutton County with evading arrest, which carries a penalty of 10 years in state prison.

Homeland Security Investigations and U.S. Customs & Border Protection conducted the investigation with the assistance of the Sonora Police Department and Texas Department of Public Safety. Assistant U.S. Attorney Ryan Redd is prosecuting the case.

On Friday, Acting U.S. Attorney Prerak Shah presented the 2021 United States Attorney’s Awards of Excellence, honoring law enforcement officers and agents who exceed the call of duty to keep their communities safe. 

“It’s hard to believe that COVID-19 has been raging here in north Texas for more than 14 months.  But while much of the rest of the country sheltered at home, you all continued to risk your health and safety in the pursuit of justice,” Acting. U.S. Attorney Shah said at a socially distanced ceremony at the Belo in Dallas. “You all are invaluable assets to our offices, and true heroes to our communities. You represent the best of the best in law enforcement.”

Awardees worked the following cases:

United States v. Sean DeAndrea Lewis
Federal Bureau of Investigation and United States Marshals Service
This investigation led to the prosecution of aa federal inmate who fabricated a murder-for-hire plot in order to receive potential credit towards his sentence.

United States v. John Cooper
Defense Criminal Investigative Service
This investigation revealed a network of illegal kickbacks and a conspiracy to defraud TTRICARE of over $65 million. The leader of the pharmaceutical marketing company was convicted at trial and two of the marketers plead guilty to recruiting more than 2,300 patients, many of whom were on active duty at Fort Hood. More here.

United States v. Bo Jack Kelly
Texas Department of Public Safety
This investigation led to the prosecuting of a Shallowater, Texas man for using a variety of social media accounts to coerce a 14-year-old minor into sending him sexually explicit videos of herself.

United States v. Cynthia Carrasco
Drug Enforcement Administration with Amarillo Police Department
This investigation led to the prosecution of a drug dealer who sold a fatal dose of heroin killing an Amarillo woman. More here.

Operation Double Eagle
Drug Enforcement Administration
This investigation led to the prosecution of cocaine dealers connected to Car Del Noreste and the seizure of more than 55 kilograms of cocaine, 92 kilograms of methamphetamine, and 374 kilograms of marijuana.

Forest Park Medical Center
IRS-Criminal Investigation Division, Federal Bureau of Investigation, U.S. Department of Labor Office of Inspector General, Defense Criminal Investigative Service, and U.S. Office of Personnel Management Office of Inspector General
This multi-year investigation resulted in the prosecution of 21 defendants in a $40 million dollar healthcare kickback scheme which caused half-a-billion dollars in tainted claims to be submitted to government and private insurances causing $80 million in losses. More here.

United States v. Marcus Anthony Braziel
Bureau of Alcohol, Tobacco, Firearms, & Explosives, Federal Bureau of Investigation, and IRS-Criminal Investigation Division
This investigation led to charges against a Lubbock Man who unlawfully sold the AR-15 style rifle used by the Midland-Odessa mass shooter in August 2019. More here.

United States v. Broussard, et al.
Federal Bureau of Investigation
This multi-year investigation resulted in the prosecution of 13 members of a violent criminal enterprise who routinely robbed customers leaving banks. More here.

United States v. Jose Linares
Federal Bureau of Investigation
This investigation led to the prosecution of a Honduran man who operated a $2.3 million Ponzi-link scheme. More here.

United States v. Jose Daniel Flores
Drug Enforcement Administration
This investigation led to the prosecution members of the Texas Syndicate gang.  As a result, 11 defendants plead guilty resulting in a combined 1,114 months in federal prison.  More here.

United States v. Yaser Said
United States v. Yassein and Islam Said
Federal Bureau of Investigation
This investigation led to the prosecution of the brother and nephew of Yaser Said, FBI’s “10 Most Wanted suspect,” for helping him evade capture for more than 12 years.  More here and here.

The staff of the United States Attorney’s Office is grateful for law enforcement officers’ sacrifices, dedication, and skill.

The U.S. Attorney and Chief U.S. District Judge Barbara M.G. Lynna also presented the “Administration of Justice” award, recognizing a staff member who consistently provides outstanding support, to Information Technology Specialist Eric Umbarger and the “Barefoot Sanders Prosecutor of the Year” award to Assistant U.S. Attorney Tiffany Eggers, Deputy Chief of NDTX’s National Security & Cyber Division.

 

GUILTY PLEA – CARLOS ENREIQUE MEJIA CACERES A.K.A “MACHETE”

On May 11, Carlos Enreique Mejia Caceres, 37, plead guilty to aiding and abetting interference with commerce by robbery and aiding and abetting the using and carrying a firearm during a crime of violence.  Mejia Caceres assisted in planning the robbery of a Dallas western wear store which he observed from another location.  Following the robbery, Mejia Caceres met with his other co-conspirators and a portion of the proceeds from the robbery.  He now faces up to 25 years in federal prison for his crimes.  The FBI conducted the investigation.  Assistant U.S. Attorney P.J. Meitl is prosecuting the case.

GUILTY PLEA – JOSE ANGEL REYES

On May 11, Jose Angel Reyes, 36, pleaded guilty to conspiracy to distribute a substance containing a detectable amount of cocaine base.  Reyes purchased 552.825 grams of cocaine base and 921.375 grants of cocaine over the course of one year for further distribution to his customers.  In October 2018, agents arrested Reyes at his residence where they located a loaded 9mm handgun and two cell phones.  He now faces up to XX years in federal prison for the crimes.  The DEA conducted the investigation.  Assistant U.S. Attorney John Kull is prosecuting the case.

GUILTY PLEA – JUSTIN LAJUAN BRITTAIN

On May 11, Justin Lajuan Brittain, 46, pleaded guilty to possession of a firearm by a convicted felon and possession with intent to distribute a controlled substance. Brittain was stopped by Dallas police officers for speeding.  When they approached the car, they noticed a marijuana cigarette in the ashtray and a mason jar with additional marijuana.  During a search of Brittain’s vehicle, a .380 caliber pistol was recovered between the center console and the driver’s seat.  Brittain admitted that he was a felon and knew he was not supposed to possess firearms.  He now faces up to 30 years in federal prison for the crimes.  The ATF and the Dallas Police Department conducted the investigation.  Assistant U.S. Attorney John Boyle prosecuted the case.

GUILTY PLEA – CHRISTOPHER BOWLING

On May 12, Christopher Bowling, 50, pleaded guilty to conspiracy to commit bank fraud.  Bowling and his co-conspirators data mined PII from victims from publicly available websites and from the darkweb.  He then took out lines of credit using the victims PII.  In January 2019, Bowling and other co-conspirators went to a Dallas area retail store to apply for a line of credit using a victim’s PII.  In March 2019, Bowling fraudulently applied for a line of credit using a victim’s PII to purchase a Rolex watch and ring.  He now faces up to 30 years in federal prison for the crimes.  The U.S. Secret Service conducted the investigation.  Assistant U.S. Attorney Damien Diggs is prosecuting the case.

Two North Texas dentists, their dental management companies, and certain affiliated pediatric dental practices have paid the United States $3.1 million to resolve allegations that they defrauded the Texas Medicaid program and violated the False Claims Act by knowingly billing for pediatric dental services that were not rendered or that falsely identified the person who provided the service, announced Acting U.S. Attorney Prerak Shah of the Northern District of Texas.

“These defendants knowingly defrauded Medicaid, a program that provides medical coverage for more than 4 million low-income Texans,” said Acting U.S. Attorney Shah. “If they thought they could get away with this scam by targeting underprivileged populations, they were sorely mistaken.”

Drs. Gunjan Dhir, 43, and Gaurav Puri, also 43, have owned and operated dental clinics and dental management companies throughout Texas since 2009.  The clinics serve primarily low-income children enrolled in the Texas Medicaid program; the dental management companies provide management and administrative services to the clinics.  After opening their first dental clinic in 2009, Drs. Dhir and Puri rapidly expanded their operation to include 35 dental clinics operating statewide by 2015. 

This settlement resolves allegations that between May 30, 2011 and May 30, 2017, Drs. Dhir, Puri, and their affiliated management companies and pediatric dental clinics submitted or caused the submission of false claims for payment to the Texas Medicaid Program for fillings in children that were not actually performed.  The settlement also resolves allegations that they submitted or caused the submission of claims using erroneous Medicaid provider numbers misrepresenting the dentists who performed pediatric procedures.

Funded jointly by the states and the federal government, Medicaid is intended to serve low-income families and children.  The State of Texas paid for part of the Medicaid claims at issue and will receive approximately half of the government’s share of the settlement amount.

Part of the allegations resolved by this settlement were originally filed under the qui tam, or whistleblower, provisions of the False Claims Act by relators Sandy Puga, Nelda Torres-Brown, and Sonia Cardoso, all former employees of the implicated dental management companies and/or pediatric dental practices, who will receive a fraction of the settlement. (The Act permits private persons with evidence of fraud to sue on behalf of the government for false claims for government funds and to receive a share of any recovery.)

The case was handled for the government by Assistant U.S. Attorneys Kenneth Coffin and Braden Civins on behalf of the Department of Health & Human Services Office of Inspector General and the State of Texas, with assistance from the Texas Attorney General’s Office, Civil Medicaid Fraud Division. 

The claims resolved by the settlement are allegations only and there has been no determination of liability.

In honor of National Police Week, Acting U.S. Attorney Prerak Shah recognizes the service and sacrifice of federal, state, local, and Tribal law enforcement. This year, the week is observed Sunday, May 9 through Saturday, May 15, 2021.

“This week is a time to honor our law enforcement officers who have made the ultimate sacrifice in service to our nation,” said Attorney General Merrick Garland. “I am constantly inspired by the extraordinary courage and dedication with which members of law enforcement act each day, putting their lives on the line to make our communities safer. To members of law enforcement and your families: we know that not a single day, nor a single week, is enough to recognize your service and sacrifice. On behalf of the entire Department of Justice, you have our unwavering support and eternal gratitude.”

“The Northern District of Texas partners with more than 300 federal, state, and local law enforcement agencies whose officers and agents routinely risk life and limb to keep our communities safe. This year has presented even more challenges than most,” said Acting U.S. Attorney Prerak Shah. “We can never repay our officers’ myriad sacrifices, but we will always stand behind them. We are proud to back the blue.” 

In 1962, President Kennedy issued the first proclamation for Peace Officers Memorial Day and National Police Week to remember and honor law enforcement officers for their service and sacrifices.  Peace Officers Memorial Day, which every year falls on May 15, specifically honors law enforcement officers killed or disabled in the line of duty.  

Each year, during National Police Week, our nation celebrates the contributions of law enforcement from around the country, recognizing their hard work, dedication, loyalty, and commitment to keeping our communities safe. This year the COVID-19 pandemic has highlighted law enforcement officers’ courage and unwavering devotion to the communities that they have sworn to serve.

During the Roll Call of Heroes, a ceremony coordinated by the Fraternal Order of Police (FOP), more than 300 officers will be honored.  Based on data submitted to and analyzed by the National Law Enforcement Officer Memorial Fund (NLEOMF), of the law enforcement officers who died nationwide in the line of duty in 2020, nearly 60 percent succumbed to COVID-19.

Additionally, according to statistics reported by the Federal Bureau of Investigation (FBI) through the Law Enforcement Officer Killed and Assaulted (LEOKA) Program, 46 law enforcement officers died as a result of felonious acts and 47 died in accidents in 2020.  LEOKA statistics can be found on FBI’s Crime Data Explorer website. 

The names of the 394 fallen officers who have been added in 2020 to the wall at the National Law Enforcement Officer Memorial will be read on Thursday, May 13, 2021, during a Virtual Candlelight Vigil, which will be livestreamed to the public at 8:00 pm EDT. The Police Week in-person public events, originally scheduled for May, have been rescheduled due to ongoing COVID-19 concerns to October 13-17, 2021. An in-person Candlelight Vigil event is scheduled for October 14, 2021.

Those who wish to view the Virtual Candlelight Vigil on May 13, 2021, can watch on the NLEOMF YouTube channel found at https://www.youtube.com/user/TheNLEOMF. The FOP’s Roll Call of Heroes can be viewed at www.fop.net. To view the schedule of virtual Police Week events in May, please view NLEOMF’s Police Week Flyer.   

To learn more about National Police Week in-person events scheduled for October, please visit www.policeweek.org.

Four San Angelo tax preparers have been charged with submitting fraudulent tax returns to the IRS, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.

On Wednesday, April 14 2021, a federal grand jury indicted Hugo Cesar Granados, the 60-year-old manager of Columbia Tax Service, his adult daughter, Blanca L. Granados, his adult son, Hugo Alberto Granados, and his employee, Saul Garcia-Soto, on one count each of conspiracy to defraud the United States and several counts each of aiding in the preparation of false documents. Hugo Cesar Granados, Blanca Granados, and Hugo Alberto Granados surrendered themselves to IRS – Criminal Investigations and U.S. Marshals on Thursday afternoon. Saul Garcia-Soto remains a fugitive.

According to the indictment, the elder Mr. Granados and his co-conspirators falsified their clients’ individual income tax returns, Forms 1040, in order to inflate the clients’ tax refunds. As a member of the IRS’ Refund Transfer Program, Columbia Tax Service did not charge the taxpayers anything upfront, but took their preparation fee from the refund before the remainder was issued to the taxpayer. Mr. Granados created a training manual that instructed his employees how to file fraudulent tax returns.

Mr. Granados and his co-conspirators allegedly fabricated clients’ Schedule A, itemized deductions, and Schedule C, sole proprietorship profit and loss statements. They routinely claimed the taxpayer owned a business when no such business existed, claimed unreimbursed employee expenses such as travel and per diem, and claimed business expenses related to maintenance, utilities, supplies, insurance, and professional services that were never incurred. 

From 2013 to 2017, the conspirators submitted numerous fraudulent tax returns, resulting in an estimated $18 million in tax losses to the government.

“These defendants brazenly fabricated clients’ financial statements and submitted them to the IRS, resulting in artificially inflated refunds,” said Acting U.S. Attorney Prerak Shah. “Conduct like this is a slap in the face to the many hardworking Americans who pay their taxes dutifully every year. We will not stand for tax fraud, especially by authorized tax preparers.”

“These defendants made a profit by falsifying their client’s tax returns without concern of the repercussions and now face the true costs of their actions in court,” said IRS - CI Acting Special Agent in Charge Jerry Gomez of the Dallas Field Office.

An indictment is merely an allegation of criminal conduct, not evidence. All defendants are presumed innocent until proven guilty in a court of law.

If convicted, Hugo Cesar Granados faces up to 14 years in federal prison; Blanca Granados faces up to 14 years; Hugo Alberto Granados faces up to 17 years; and Saul Garcia-Soto faces up to 20 years.

IRS – Criminal Investigations conducted the investigation. The San Angelo Division of the Northern District of Texas is prosecuting the case.

A Federal Railroad Administration inspector has been charged with lying on official documents, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.

Tremelle Sykes, 54, was indicted Tuesday on eight counts of false statements. He will make his initial appearance before U.S. Magistrate Judge David Horan Friday morning.

According to the indictment, Mr. Sykes was employed by the FRA as a Hazardous Materials Safety Inspector assigned to inspect northeast Texas railroads and shippers for compliance with regulations pertaining to the transport of hazardous materials such as ethanol, crude oil, and other toxic or poisonous substances.

On at least eight occasions, Mr. Sykes allegedly falsified inspection reports, claiming to have conducted inspections that never actually occurred.  The reports, filed over the course of six months in early 2019, covered railyard companies in Dallas, Fort Worth, Garland, Cleburne, Gunter, and Saginaw.

An indictment is merely an allegation of criminal conduct, not evidence. Like all defendants, Mr. Sykes is presumed innocent until proven guilty in a court of law.

If convicted, he faces up to 40 years in federal prison, five years per count.

The Department of Transportation’s Office of Inspector General conducted the investigation. Assistant U.S. Attorney Nicholas Bunch is prosecuting the case.

SENTENCING – CHRISTOPHER TRAJUAN COUSINS

On May 5, Christopher Trajuan Cousins, 28, was sentenced to 165 months in federal prison for conspiracy to interfere with commerce by robbery.  In February 2018, Cousins and two co-conspirators robbed a Sprint store in Garland at gunpoint.  The co-conspirators stole smartphones valued at approximately $13,000.  The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation.  Assistant U.S. Attorney Erica Hilliard prosecuted the case.

GUILTY PLEA – OSWALDO AGUILERA-ADAME

On May 4, Oswaldo Aguilera-Adame, 29, pleaded guilty to possession with the intent to distribute a controlled substance.  In June 2020, Aguilera-Adame controlled an apartment which received multiple kilograms of shipments of methamphetamine.  Agents executed a search warrant of the apartment and arrested Aguilera-Adame outside of the residence.  Inside the apartment, law enforcement located 18 kilograms of methamphetamine, 52 quarts of liquid methamphetamine, 24-gallon sized bags of methamphetamine, and $152,840 in drug proceeds. The Drug Enforcement Administration conducted the investigation.  Assistant U.S. Attorney John Kull is prosecuting the case. 

SENTENCING – ARMANDO CONTRERAS-MARTINEZ

On May 5, Armando Contreras-Martinez, 27, was sentenced to 180 months in federal prison for conspiracy to possess with intent to distribute methamphetamine. In July 2018, federal agents executed a search warrant at Contreras-Martinez’s residence.  Law enforcement recovered two firearms, 5.5 kilograms of methamphetamine, and equipment used in the methamphetamine conversion process.  Additionally, law enforcement located cut-up gas tanks and wheel rims that had been used to transport methamphetamine into the United States.  The Drug Enforcement Administration conducted the investigation.  Assistant U.S. Attorney Suzanna Etessam prosecuted the case.

An Arlington mother-son duo who shipped methamphetamine through the U.S. Mail has been sentenced to a combined 18 years in federal prison, announced Acting U.S. Attorney Prerak Shah.

Mary Jane McIntyre, 61, pleaded guilty in December to possession of a controlled substance with intent to distribute; she was sentenced Thursday by U.S. District Judge Mark T Pittman to 72 months in federal prison. Her son, Sean Alexander Harris, 29, pleaded guilty in December to a similar charge; he was sentenced last month by U.S. District Judge Reed O’Connor to 144 months in federal prison.

According to court documents, in March 2020, the North Texas Parcel Task Force intercepted a package thought to originate from a dark web narcotics vendor. The package – stamped with the label of a fictious company, Forever Stylist, Inc., purportedly based in Lewisville, Texas – contained several grams of a substance that field-tested positive for methamphetamine.

Investigators traced the package back to Mr. Harris, who they later observed depositing parcels of narcotics at various postal centers across the metroplex.  They also identified Mr. Harris’ mother, Ms. McIntyre, on post office surveillance camera mailing parcels for her son.

The ensuing investigation identified more than 8,400 packages containing an estimated total of more than 75 pounds of methamphetamine posted between October 2019 and October 2020. 

In plea papers, Mr. Harris admitted he sold narcotics over the dark web to buyers across the country.

“Suspects mistakenly believe they can remain hidden in the shadows of the dark web,” said Thomas Noyes, Inspector in Charge of the Fort Worth Division. “Postal Inspectors’ objectives are to rid the mail of illicit drug trafficking, preserve the integrity of the mail and, most importantly, provide a safe environment for postal employees and the American public. The sentencing handed down today should serve as a reminder to other perpetrators engaged in this type of criminal activity that we will ensure they are brought to justice. We thank the USPS-OIG and DEA for their partnership, in addition to the U.S. Attorney’s Office who remain a steadfast protector of the public.”

The U.S. Postal Inspection Service, U.S. Postal Service Office of Inspector General, and the Drug Enforcement Administration’s Dallas Field Division conducted the investigation. Assistant U.S. Attorney Robert Boudreau is prosecuting the case.

A San Angelo man pleaded guilty yesterday to his role in a $550,000 embezzlement scheme, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.

Arturo Salazar III, 41, a former site manager for a Vestas-American Wind Technologies wind farm, pleaded guilty Wednesday to four counts of unauthorized transactions with access devices.

According to court documents, Mr. Salazar admitted that he teamed up with Keith Krier, a conspirator, to create a sham business, BT Machine, with the sole purpose of creating fraudulent invoices.  From 2016 to 2019, while Salazar worked as site manager for Vestas Wind, the conspirators presented hundreds of bogus invoices for services that BT Machine purportedly provided to Vestas.

Following payment of the invoices, Mr. Salazar the other individual would then split the money.

Mr. Salazar also used Vestas company credit cards to make unauthorized purchases totaling approximately $80,000.  These personal purchases included a dump trailer, a skid steer loader, a universal terrain vehicle, and products from Amazon.

From 2016 to 2019, Mr. Salazar admitted to defrauding Vestas’ of more than $550,000.

Mr. Salazar now faces up to 60 years in federal prison. His sentencing will be set in late summer.

The Federal Bureau of Investigation conducted the investigation.  Assistant U.S. Attorney Ann Howey is prosecuting the case.

A Dallas man has been arrested and charged with bank robbery, announced Acting U.S. Attorney Prerak Shah.

Michael Wilmer Wilson, 34, was arrested by the FBI at his residence in Dallas on Thursday morning, charged via criminal complaint with bank robbery. He is slated to make his initial appearance in federal court on Friday.

According to the criminal complaint, Mr. Wilson is allegedly connected to multiple recent bank robberies across north Texas. The incidents were repeatedly caught on surveillance camera. 

During a robbery at a bank in Dallas on Feb. 9, Mr. Wilson allegedly flashed a demand note that read, “This is a robbery. I have a gun.” After grabbing several thousand dollars from the frightened teller, he fled with the money and demand note -- but left a deposit slip on the counter.

Investigators lifted a latent fingerprint off of the slip. They ran the print through a police department database, but failed to turn up a match.

During another robbery at a bank in Ennis on April 29, the suspect allegedly displayed a handwritten demand note that read, “THIS IS A ROBBERY. 30K. DON’T BE A HERO.” He instructed the victim teller to place cash into a folder, then fled, on foot, towards a nearby grocery store.

Investigators collected surveillance video from the grocery store, which showed a silver Dodge Challenger pulling out of the parking lot approximately three minutes after the robbery. The footage later showed the vehicle crossing paths with a police department vehicle, which happened to record the car’s license plate on its dash cam. 

A search of the license plate number in the Texas Department of Motor Vehicles’ database revealed that the silver Dodge was registered to Mr. Wilson, whose driver’s license photo matched witnesses’ descriptions of the bank robbery suspect.

A forensic fingerprint examiner compared the latent print collected during the Feb. 9 robbery to prints collected by the Texas Department of Public Safety in March 2020 when Mr. Wilson applied for his license, and determined the prints were a match. 

A criminal complaint is merely an allegation of wrongdoing, not evidence. Like all defendants, Mr. Wilson is presumed innocent until proven guilty in a court of law.

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

The Federal Bureau of Investigation’s Dallas Violent Crimes Taskforce conducted the investigation with the assistance of the Dallas Police Department, the Ennis Police Department, the Texas Department of Motor Vehicles (DMV), and the Texas Department of Public Safety (DPS). Assistant U.S. Attorney Andrew Briggs is prosecuting the case.

CORPUS CHRISTI, Texas – A 34-year-old undocumented immigrant residing in Austin has entered a guilty plea to conspiring to transport other non-citizens, announced Acting U.S. Attorney Jennifer B. Lowery.

Lucio Magana Aguilar admitted he picked up a group of nine people Feb. 15 - the day the unusual harsh winter freeze struck Texas - with plans to transport them north. 

The group had been traveling through the brush in an attempt to avoid the Javier Vega Jr. checkpoint near Sarita. During their journey, they had separated from their guide and faced extreme weather conditions. They made it back to the roadway where Aguilar arrived in his truck to transport them farther north. 

However, by that time, one of the individuals was in extreme distress and another had already succumbed to the conditions. Five of the aliens, including the deceased one, were loaded into the backseat, while the other four were loaded into the rear cargo area of the truck.

Authorities later conducted a traffic stop on the vehicle, at which time they discovered the deceased alien dead at the scene. 

Aguilar expected to be paid $1,000 in return for smuggling the group.

U.S. District Judge Drew B. Tipton will impose sentencing July 29. At that time, Aguilar faces up to 10 years in prison and a possible $250,000 maximum fine. He has been and will remain in custody pending that hearing. 

Homeland Security Investigations conducted the investigation with the assistance of Border Patrol. Assistant U.S. Attorney Barbara J. De Pena prosecuted the case.

SENTENCING – KIRA LANE

On April 28, Kira Lane, 54, was sentenced to 5 years probation and ordered to pay $233,681.25 in restitution for access device fraud.  Lane operated a catering business where he processed credit card transactions.  During 2015, he used stolen credit card numbers for approximately 64 credit card transactions totaling $233,681.25.  The U.S. Secret Service conducted the investigation.  Assistant U.S. Attorney Jenna Rudoff prosecuted the case.

SENTENCING – LUIS PENA-ALEMAN

On April 26, Luis Pena-Aleman, 25, was sentenced to 135 months in federal prison for possession with the intent to distribute methamphetamine.  In February 2019, a confidential source met a co-conspirator at an agreed location in Dallas.  The co-conspirator arrived at the agreed location in a truck registered to Pena-Aleman to deliver the methamphetamine. Agents conducted a search of a storage facility located in Mesquite, Texas where they found a large quantity of methamphetamine and Pena-Aleman’s truck.  The Drug Enforcement Administration conducted the investigation.  Assistant U.S. Attorney Suzanna Etessam prosecuted the case.

GUILTY PLEA – OSCAR MARIO FLORES DAZA

On April 28, Oscar Mario Florez Daza, 32, pleaded guilty to conspiracy to launder money.  In April 2020, Florez Daza picked up $14,800 in drug proceeds from a codefendant to launder.  In May, Florez Daza picked up $40,000 in drug proceeds from a location in Oklahoma to transport them to Texas. Flores Daza faces up to 20 years in federal prison for his crimes.  The Drug Enforcement Administration conducted the investigation.  Assistant U.S. Attorney P.J. Meitl is prosecuting the case. 

A Texas man pleaded guilty today to selling counterfeit vape pens imported from China, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.

Christopher Andrew Reyes, 23, of The Colony, pleaded guilty Thursday to conspiracy to import drug paraphernalia.

“This defendant imported thousands of potentially dangerous black-market vaping devices,” said Acting U.S. Attorney Prerak Shah. “Given the alarming incidence of lung injuries stemming from unregulated THC vapes, we knew could not allow any more of these devices onto our streets.”

“The distribution of these black-market vaping devices is not only illegal, but could prove lethal to those who consume vape materials purchased from unregulated sources, said Ryan L. Spradlin, Special Agent in Charge Homeland Security Investigations (HSI) Dallas. “These illicit items are a significant health threat in our communities and should not be available in the open market.”

According to court documents, Mr. Reyes admitted that he allowed employees of a vaping shop on Harry Hines Boulevard to order counterfeit THC vaping products online using his bank card.  (Tetrahydrocannabinol, or THC, is the psychoactive compound found in marijuana.)

In September 2019, U.S. Customs & Border Protection agents intercepted a shipment of 2,400 counterfeit THC vaping devices addressed to Mr. Reyes and bound for his home. The vaping devices, which were sent from China and routed through DFW International Airport, bore the counterfeit trademark of a popular THC vape brand, “Cookies.”  Agents estimated that at least five additional shipments of vaping products had been sent to Mr. Reyes.

In plea papers, the defendant admitted that after receiving the packages, he sold the contents back to the vaping shop for profit.  His bank statements, which show large purchases from Chinese e-commerce company Alibaba (an online retailer similar to Amazon), backed up his admissions.

Mr. Reyes now faces up to three years in federal prison. His sentencing is set for Thursday, Aug. 26.

Following a rash of lung injuries related to counterfeit vaping devices, the CDC urged the public to avoid THC-containing vapes, especially those purchased from unreliable online retailers. For more information, consult the CDC’s E-Cig FAQ.  

Homeland Security Investigations and the Food & Drug Administration’s Office of Criminal Investigations conducted the investigation with the assistance of Customs & Border Protection. Assistant U.S. Attorney Phelesa Guy prosecuted the case alongside Trial Attorneys Patrick Runkle and Speare Hodges of the Justice Department’s Consumer Protection Branch.

A prison inmate has been sentenced to more than 15 additional years in federal prison for attacking a Bureau of Prisons employee, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.

Following a two-day trial in January, a jury found 44-year-old William Lee Terrell guilty of assault of a federal officer resulting in bodily injury. He was sentenced today to 188 months’ imprisonment by U.S. District Judge James Wesley Hendrix.

According to evidence presented at the trial, Mr. Terrell was convicted in 2010 of bank robbery and ordered to serve his 235-month sentence at FCI Big Spring.  On March 23, 2019, Mr. Terrell, who was on suicide watch, was placed under the observation of Human Resource Specialist Krista Coccozza.

As HR Specialist Coccozza attempted to retrieve trash from a meal he had just eaten, Mr. Terrell reached through the food slot in the door, grabbing Specialist Coccozza. He struggled with her, attempting to free the keys to the cell attached to her belt.

Additional guards responded to Coccozza’s calls for help and they were able to free the keys from Terrell and secure his cell.

Specialist Coccozza suffered a bruised lung, bruised ribs, sprained wrist, sprained elbow, sprained fingers, skin abrasions, pain, and redness on her body, and was unable to return to work for a period of time due to her injuries.

Per the Court, Mr. Terrell will serve the 188-month sentence handed down today consecutive to the 235 month sentence he received in the bank robbery case for a total of 423 months, or a little over 35 years.

The Federal Bureau of Investigation conducted the investigation. Assistant U.S. Attorneys Callie Woolam and Stephen Rancourt are prosecuting the case.  U.S. District Judge James Wesley Hendrix presided over the trial.