Northern District of Texas

An Irving man has been sentenced to 10 years in federal prison for helping a capital murder suspect evade capture for more than a decade, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.

Islam Yaser-Abdel Said, the 32-year-old son of FBI “10 Most Wanted” suspect Yaser Said, pleaded guilty in January to one count of conspiracy to conceal a person from arrest, one count of concealing a person from arrest, and one count of conspiracy to obstruct an official proceeding.  Mr. Said pleaded open to the charges against him, with no assurances from the government as to the sentence prosecutors would recommend to the judge. He was sentenced Tuesday afternoon by U.S. District Judge Reed C. O’Connor in Fort Worth.

“Islam Said prioritized the whims of his father, an alleged killer, over justice for his own sisters. Thanks to the dogged work of the FBI and its law enforcement partners, however, Mr. Said’s efforts were ultimately in vain,” U.S. Attorney Prerak Shah said following Mr. Said’s guilty plea. “We are grateful to the many agents and officers who worked to apprehend Mr. Said, along with his father and uncle. Sarah and Amina deserve justice.” 

“Islam Said made it possible for his father, Yaser Said, to evade justice for the brutal murder of his daughters for more than a decade,” said FBI Dallas Special Agent in Charge Matthew DeSarno. “Along with our partners, the FBI is thankful for the dedication and relentless pursuit that led to the capture of Amina and Sarah’s killer and those that provided him harbor.”

In plea papers, Islam Said admitted to sheltering his father from arrest in an attempt to subvert the administration of justice.

The elder Mr. 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. He was captured 12 years later by the FBI’s Violent Crimes Task Force, and is currently in state custody.

In pleading guilty, Islam Said admitted that evidence proved he committed the crimes charged in the superseding indictment filed in November 2020.

Mr. Said harbored his father, Yaser, inside an apartment in Bedford, Texas, where a maintenance worker spotted Yaser on Aug. 14, 2017. After the maintenance worker reported the sighting to the FBI, an agent was dispatched to interview Islam, but Islam refused to cooperate.  

He later harbored his father inside a home in Justin, Texas that belonged to his cousin. On Aug. 25, 2020, FBI agents observed Mr. Said and his uncle 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.

Islam’s uncle, Yassein Abdulfatah Said (Yaser’s 59-year-old brother), was convicted in February of conspiring with Islam to conceal Yaser from arrest, among other crimes. Yassein’s sentencing is set for June 4 at 9 a.m. in Fort Worth. 

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.

SENTENCING – MARIA DEL ROSARIO ANTUNEZ-GARCIA

On April 19, Maria Del Rosario Antunez-Garcia, 35, was sentenced to 15 years in federal prison for conspiracy to possess with intent to distribute a controlled substance.  In June 2018, law enforcement intercepted telephone calls which revealed that Antunez-Garcia and a coconspirator had taken shipment of 2 kilos of heroin. Later that month, an undercover agent purchased a kilogram of methamphetamine from Antunez-Garcia.  During the meeting, Antunez-Garcia informed the undercover agent that she would soon be receiving 70 kilograms of methamphetamine.  The DEA conducted the investigation.  Assistant U.S. Attorney John Kull prosecuted the case.

SENTENCING – STEVEN JALLOUL

On April 20, Steven Jalloul, 43, was sentenced to 6 years in federal custody and ordered to pay $14,100,029.87 in restitution for preparing false tax returns. Jalloul prepared and submitted to the IRS false income tax returns on behalf of his clients through his business, Royalty Tax and Financial Services LLC.  Jalloul added false or inflated education expenses to client tax returns to make them eligible for larger American Opportunity education credits.  He also added false or inflated business income or losses to client tax returns to maximize the Earned Income Credit. The IRS- CI conducted the investigation.  Assistant U.S. Attorney Sid Mody prosecuted the case.

SENTENCING – EDDIE LEE BUSBY

On April 21, Eddie Busby, 30, was sentenced to 78 months in federal prison for conspiracy to possess with intent to distribute a controlled substance.  Busby conspired with multiple individuals to possess and distribute methamphetamine.  On three different occasions in August 2019, Busby and his co-conspirators sold methamphetamine. The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation.  Assistant U.S. Attorney Joe Magliolo prosecuted the case.

SENTENCING – ARGELIA AGUIRRE

On April 21, Argelia Aguirre, 42, was sentenced to 20 years in federal prison for possession with the intent to distribute methamphetamine.  On February 4, 2020, Aguirre possessed approximately 85 grams of methamphetamine with the intent to distribute the drugs for profit.  The Texas Department of Public Safety conducted the investigation.  Assistant U.S. Attorney P.J. Meitl prosecuted the case.

A Lubbock woman who received shipments of methamphetamine via mail has been sentenced to 210 months in federal prison, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.

Vanessa Rena Torres, 35, pleaded guilty in September to possession with the intent to distribute methamphetamine.  She was sentenced on Thursday before U.S. District Judge James Wesley Hendrix.

According to court documents, U.S. Customs and Border Protection assigned to the FedEx hub in Memphis, Tennessee identified a package inaccurately labeled as food products destined for Lubbock, Texas.  CBPO x-rayed and opened the package and located 3.15 kilograms of methamphetamine concealed inside seasoning packets.

HSI agents conducted a controlled delivery of the package to its original destination in Lubbock, Texas.  Ms. Torres accepted delivery of the methamphetamine-filled parcel.

Later that evening, agents executed a search warrant at the Lubbock residence and located the package in the master bedroom closet.  During asearch of the residence, agents were able to obtain receipts from money transfer to Mexico via Western Union.

When questioned by law enforcement, Ms. Torres admitted that she had been distributing methamphetamine in Lubbock for approximately two years.  A male from Mexico known as “El Tio” sent her the parcel for drug trafficking.  Torres also stated that “El Tio” had previously sent her one kilogram of methamphetamine which she had sold for approximately $10,000.

In March, Roger Pinon, 30, was sentenced to 41 months in federal prison for international money laundering in connection to his role in the methamphetamine trafficking conspiracy.

Homeland Security Investigations, U.S. Customs and Border Protection, and the Lubbock Police Department conducted the investigation.  Assistant U.S. Attorney Stephen Rancourt prosecuted the case.

Reagor Dykes Auto Group owner Bart Reagor has been charged with lying about using business loans for personal expenses, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.

On Thursday, a federal grand jury indicted Bart Wade Reagor, 55, on two counts of bank fraud and one count of making false statements to a bank insured by the FDIC. He will make his initial appearance before U.S. Magistrate Judge Lee Ann Reno in Amarillo on Monday at 2 p.m.

“Even as his businesses struggled financially, Mr. Reagor diverted business loan funds into his personal bank accounts, expressly violating his agreement with the bank,” said Acting U.S. Attorney Prerak Shah. “Lying to an FDIC-insured financial institution is a federal crime, one we will not abide. We are determined to hold to account every Reagor Dykes employee who engaged in financial misconduct.”

“Mr. Reagor used his executive influence to allegedly defraud a lending institution and cause the loss of a significant amount of money,” said Dallas FBI Special Agent in Charge Matthew J. DeSarno. “Corporate fraud schemes, like those that involve diverting millions of dollars to personal funds, have the potential to cause immeasurable damage to the public’s confidence in our economy.”

According to the indictment, in the first quarter of 2017, one of Reagor Dykes’ floorplan lenders conducted an audit that placed the auto group in a weak cash position.

In order obtain cash to continue operations, D & R Acquisitions, a limited liability company formed to hold Reagor Dykes’ real estate assets, entered into a loan agreement with International Bank of Commerce (IBC). The agreement included a $10,000,000 working capital loan, which was distributed by IBC to D&R in two tranches: $5,000,000 in July 2017 and another $5,000,000 in February 2018, to be disbursed to the various RDAG entities.  

However, in applying for the loan, Mr. Reagor allegedly misrepresented its purpose, concealing from IBC the fact that he planned to divert some of the proceeds from the working capital loan into his own personal account for personal expenses. (The loan agreement expressly prohibited Mr. Reagor and others from diverting loan proceeds to their personal bank accounts, and IBC would not have approved the loan if Mr. Reagor or anyone else had disclosed to IBC that some of the loan proceeds would be diverted to Mr. Reagor’s personal bank accounts.)

In total, Mr. Reagor diverted more than $1.7 million to his personal account at Prosperity Bank -- $766,277 in July 2017, following IBC’s disbursement of the first tranche of money, and $1 million in February 2018, following IBC’s disbursement of the second tranche of money.

Prior to Mr. Reagor’s indictment, 15 of his employees pleaded guilty to various crimes involving dummy flooring and check kitting at Reagor Dykes, including:

• Shane Andrew Smith, Reagor Dykes’ CEO, who pleaded guilty in June 2019 to conspiracy to commit wire fraud; he is slated to be sentenced on July 27.
   
• Diana Urias, an office manager in Reagor Dykes’ used car mall in Levelland, who pleaded guilty in September 2019 to conspiracy to commit bank fraud; she is slated to be sentenced on May 4.
   
• Sheila Miller, an RDAG group controller, who pleaded guilty in September 2019 to conspiracy to commit bank fraud; she is slated to be sentenced on May 4.
   
• Paige Johnston, an office manager in Reagor Dykes’ Chevrolet store in Floydada, who pleaded guilty in October 2019 to conspiracy to commit wire fraud; she is slated to be sentenced on May 20.
   
• Lindsay Williams, and RDAG group accounting manager, who pleaded guilty in October 2019 to conspiracy to commit bank fraud; she is slated to be sentenced on May 13.
   
• Sherri Wood, an office manager at Reagor Dykes’ Ford store in Plainview, who pleaded guilty in October 2019 to conspiracy to commit wire fraud; she is slated to be sentenced May 6.
   
• Pepper Rickman, an accounting controller at Reagor Dykes’ Toyota store in Plainview, who pleaded guilty in October 2019 to conspiracy to commit wire fraud; he is slated to be sentenced May 4.
   
• Brad Fansler, an RDAG group administrative director, who pleaded guilty in November 2019 to conspiracy to commit wire fraud; he is slated to be sentenced May 4.
   
• Ashley Dunn, executive assistant to the CEO, who pleaded guilty in December 2019 to conspiracy to commit bank fraud; she is slated to be sentenced on May 4.
   
• Whitney Maldonado, an office manager at Reagor Dykes’ Mitsubishi store in Lubbock, who pleaded guilty in December 2019 to conspiracy to commit wire fraud; she is slated to be sentenced on May 6.
   
• Elaina Cabral, an office manager at Reagor Dykes’ Toyota store in Plainview, who pleaded guilty in December 2019 to conspiracy to commit wire fraud; she is slated to be sentenced May 6.
   
• Mistry Canady, an office manager at Reagor Dykes’ Ford store in Lamesa, who pleaded guilty in January 2020 to conspiracy to commit wire fraud; she is slated to be sentenced on May 13.
   
• Andrea Kate Phillips, an office manager at Reagor Dykes’ Ford store in Plainview, who pleaded guilty in February 2020 to misprision of a felony; she is slated to be sentenced on May 6.
   
• Wesley Neel, RDAG Safety & Compliance Manager, who pleaded guilty in March 2020 to conspiracy to commit wire fraud; he is slated to be sentenced May 6.
   
• Steven Reinhart, RDAG Legal Compliance Director, who pleaded guilty in February 2021 to misprision of a felony; he is slated to be sentenced June 22.
   

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

If convicted, Mr. Reagor faces up to 90 years in federal prison, and will be required to forfeit any property traceable to the offense.

The Federal Bureau of Investigation’s Dallas Field Office and Internal Revenue Services - Criminal Investigation Division conducted the investigation.  Assistant U.S. Attorneys Joshua Frausto, Jeffrey Haag, and Amy Burch are prosecuting the case. 

A Johnson County man who was arrested with 110,000 images of child pornography has been sentenced to 10 years in federal prison, announced Acting U.S. Attorney Prerak Shah.

Timothy Lynn Vandeventer, 55, pleaded guilty to receipt of child pornography in November.  He was sentenced yesterday before U.S. District Judge Ed Kinkeade.

According to court documents, HSI agents learned that Vandeventer was downloading child pornography from the internet to an IP address located at his residence in Alvarado, Texas.

Agents executed a search warrant at Vandeventer’s residence and seized a laptop computer, five external hard drives, and printing equipment.

Vandeventer purchased child pornography on the internet and downloaded it to his laptop and external hard drives so that he could easily access the illicit content.  Additionally, Vandeventer used a computer printer to print images of child pornography to view for his sexual gratification.

A forensic analysis of Vandeventer’s computer located 110,000 images and 62 videos of child pornography including multiple images of prepubescent minors and minors less than 12-years-old.

Homeland Security Investigations conducted the investigation with assistance from the Johnson County Sheriff’s Office and the U.S. Secret Service.  Assistant U.S. Attorney Shane Read prosecuted the case.

Thirteen individuals with ties to a Mexican drug cartel have been sentenced to federal prison following an investigation led by the Drug Enforcement Administration, announced Acting U.S. Attorney Prerak Shah.

The thirteenth defendant, 30-year-old Jorge Llanas of Dallas, Texas, was sentenced Thursday by U.S. District Judge Jane J. Boyle to a total of 28 years confinement on charges of conspiracy to possess with intent to distribute cocaine and conspiracy to launder monetary instruments.

Each defendant charged has pleaded guilty and sentenced to their respective roles in a drug distribution conspiracy and money laundering scheme that operated in North Texas, Mexico, and elsewhere from March of 2018 to August of 2018.  These defendants were associates or members of a Dallas based drug trafficking organization with ties to a cartel in Mexico associated with the Zeta Cartel.

During the investigation, agents seized more than 55 kilos of cocaine with a wholesale value of $1,457,500, 92 kilos of methamphetamine with a wholesale value of $570,400, and 822.8 pounds of marijuana.  Cash seizures in this case totaled $145,229.

According to court documents, some defendant’s in this case imported the cocaine and methamphetamine from a Mexican based drug cartel with prior ties to Los Zetas.  Large quantities of methamphetamine and marijuana were then stored at an apartment located in the Dallas Design District.  The defendants would sell drugs locally throughout the Dallas area before transporting the drug proceeds to other areas of the country.  The money from the sale of these controlled substances was then sent back to cocaine and methamphetamine suppliers in Mexico.

“We will not allow drug traffickers, members or their affiliates to bring their nefarious and deadly activities into our neighborhoods,” said Acting U.S. Attorney Shah.  “Working with our state and local partners and using the tools of our Organized Crime Drug Enforcement Task Forces, we are determined to dismantle drug trafficking networks.”

“For years, Los Zetas, and its successor, El Cártel del Noreste, have tried to use the Dallas-Fort Worth metroplex as a hub to distribute drugs throughout the United States,” stated DEA Dallas Special Agent in Charge, Eduardo A. Chávez.  “These convictions and prison terms should send a strong message to others that drug trafficking and its related violent crimes are not welcome here.  DEA Dallas and our partners at the Texoma HIDTA as well as the Organized Crime Drug Enforcement Task Forces, will continue to identify, disrupt, and destroy, these criminal organizations that choose to distribute drugs to our streets.”

The defendants sentenced in connection with this case are as follows:

• Chrystian Hernandez, 23, Dallas, Texas

Sentenced on October 8, 2020 to 10 years in federal prison for conspiring to possess with intent to distribute methamphetamine and conspiring to launder monetary instruments.

• Veronica Angeles, 51, Fort Worth, Texas

Sentenced on September 28, 2020 to 97 months in federal prison for conspiring to possess with intent to distribute cocaine.

• Jose Sanchez, 36, of Little Elm, Texas

Sentenced on June 25, 2020 to 151 months in federal prison for conspiracy to launder monetary instruments and conspiring to possess with intent to distribute cocaine.

• Cesar Ortiz, 40, Chihuahua, Mexico

Sentenced on September 8, 2020 to 46 months in federal prison for conspiring to possess with intent to distribute cocaine and conspiring to launder monetary instruments.

• Jakovan Lewis, 39, Desoto, Texas

Sentenced on September 2, 2020 to 70 months in federal prison for conspiring to possess with intent to distribute cocaine.

• Roberto Rodriguez Salinas, 39, Nuevo Laredo, Tamaulipas, Mexico

Sentenced on June 12, 2020 to 57 months in federal prison for conspiracy to launder monetary instruments and conspiring to possess with intent to distribute.

• Marcus Morones, 58, Dallas, Texas

Sentenced 0n May 6, 2020 to 41 months in federal prison for conspiracy to possess with intent to distribute methamphetamine and conspiracy to launder monetary instruments.

• Jose Guadalupe Silva, 32, Dallas, Texas

Sentenced on August 23, 2019, to 210 months in federal prison for conspiring to possess with intent to distribute cocaine.

• Moris Franco, 34, Dallas, Texas

Sentenced on March 3, 2021 to 135 months in federal prison for conspiracy to possess with intent to distribute cocaine.

• Daniel Don Juan, 30, Cleburne, Texas

Sentenced on March 16, 2021 to 20 years in federal prison for conspiracy to possess with intent to distribute cocaine and conspiracy to launder monetary instruments.

• Tomas Salinas, 51, Dallas, Texas

Sentenced on March 17, 2021 to 210 months in federal prison for conspiracy to launder monetary instruments and conspiracy to possess with intent to distribute cocaine.

• Pete Torres, 31, Dallas, Texas

Sentenced on March 25, 2021 to 46 months in federal prison for conspiracy to launder monetary instruments.

All of the defendants arrested have pleaded guilty and have been sentenced and one defendant remains a fugitive.

The case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) Investigation and was investigated by a Drug Enforcement Administration High Intensity Drug Trafficking Area (DEA HIDTA) task force.  DEA, the Dallas Police Department, the Dallas County Sheriff’s Office, Irving Police Department, Richardson Police Department, and Carrollton Police Department all assisted in the investigation of this case.

The OCDETF program was established in 1982 in order to attack and reduce the supply of illegal drugs entering the United States and to diminish violence and other criminal activity associated with the drug trade.  The OCDETF program works with federal, state, and local law enforcement agencies to identify, disrupt, and dismantle, drug traffickers and drug trafficking networks.  Additional information about the OCDETF Program can be found here.

Assistant U.S. Attorneys George Leal and Rachael Jones were in charge of these prosecutions.

GUILTY PLEA – SAMANTHA LONGORIA

On April 13, Samantha Longoria, 25, plead guilty to conspiracy to launder monetary instruments.  Longoria sent the proceeds from drug transactions to Mexico via wire remittance transfers.  For each transfer Longoria completed she was paid a fee.  When she arrested in late September, law enforcement found receipts for money transfers in her residence she shared with a coconspirator.  From May 14-18, Longoria completed 79 transactions totaling $70,000.  Longoria now faces up to 20 years in federal prison for her crimes.  The DEA conducted the investigation.  Assistant U.S. Attorney John Kull is prosecuting the case.

SENTENCING – Yotzer Harin Peraza-Navarro

On April 13, Yotzer Harin Peraza-Navarro, 32, was sentenced to 210 months in federal prison for possession with intent to distribute methamphetamine.  Peraza-Navarro was pulled over by law enforcement for a traffic violation and placed under arrest for having an active warrant.  When law enforcement searched Peraza-Navarro’s vehicle, they located $26,419, a pistol, and methamphetamine.  Peraza-Navarro later admitted to transporting 25 pounds of methamphetamine and one kilogram of heroin.  The DEA, HSI, Lubbock Sheriff’s Office, and Lubbock Police Department conducted the investigation.  Assistant U.S. Attorney Sean Long prosecuted the case.

SENTENCING – JORGE BENITEZ

On April 13, Jorge Benitez, 21, was sentenced to 10 years in federal prison for aiding and abetting possession with intent to distribute methamphetamine.  Law enforcement conducted a traffic stop of a vehicle that Benitez occupied.  Officers searched the vehicle and located marijuana, methamphetamine, heroin, $4,715 in drug proceeds, and a firearm.  The DEA conducted the investigation.  Assistant U.S. Attorney Rachael Jones prosecuted the case.

GUILTY PLEA – GERARDO JIMENEZ

On April 15, Gerardo Jimenez, 43, plead guilty to conspiracy to distribute a controlled substance and possession of a firearm during a drug trafficking crime.  Jimenez utilized a storage building on his property to store large quantities of illegal narcotics.  In May 2020, an undercover officer came to his residence and purchased an “eight ball” of cocaine.  When law enforcement executed a search warrant of the residence, they located kilograms of methamphetamine, marijuana plants, and ten firearms.  Jimenez now faces up to life in federal prison for his crimes.  The DEA conducted the investigation.  Assistant U.S. Attorney Phelesa Guy is prosecuting the case.

GUILTY PLEA – PERRY HILSON

On April 13, Perry Hilson, 42, plead guilty to possessing contraband in prison.  On July 27, 2018, Perry Hilson, a prisoner at FCI Seagoville, spoke with Deshea Hilson and instructed her to smuggle narcotics to him during their visit the following day.  When Deshea arrived in the visitation room, she went to the vending machines and purchased a bag of chips.  She later excused herself to the restroom and retrieved several balloons of methamphetamine from her person and placed them in the chip bags.  When she returned to the visitation room, Perry then pretended to eat the chips, but attempted to ingest the methamphetamine.  Perry Hilson now faces up to 20 years in federal prison for his crimes.  Assistant U.S. Attorney Damien Diggs is prosecuting the case.

A Dallas lawyer has been charged with laundering what he believed to be proceeds of narcotics trafficking, announced Acting U.S. Attorney Prerak Shah.

Rayshun Jackson, the 51-year-old attorney at the helm of The Jackson Law Firm, was arrested Wednesday, charged via criminal complaint with money laundering. He made his initial appearance in federal court Friday morning.

“Attorneys swear an oath to conduct themselves with integrity and uphold the rule of law. Mr. Jackson instead chose to ignore his oath by allegedly laundering money for purported narcotics dealers,” said Acting U.S. Attorney Prerak Shah. “He explicitly instructed them on how to further violate the law and profit from the devastation of our nation’s opioid epidemic, lining his own pockets in the process. He will now have to face the consequences of his actions.”

“Global drug trafficking depends on criminal money launderers to take ill-gained profits and weave a fictitious web of businesses and bank accounts to appear legitimate.  These illicit activities cannot exist without each other,” said Eduardo A. Chavez, Special Agent in Charge of the DEA in Dallas.  “As alleged, Mr. Jackson used his law degree not in the furtherance of justice, but to line his own pockets, a true travesty of the law.  The DEA will tirelessly investigate and seek justice for drug money launderers, who enable criminal organizations to profit from those who find themselves addicted to controlled substances.”

According to the complaint, Mr. Jackson surfaced during the DEA’s years-long investigation of a large-scale opioid distribution ring, when a high-level dealer offered to introduce an undercover agent to someone who could launder drug proceeds.

Asked if he knew anyone capable of laundering around half a million dollars of “drug money,” the dealer stated he knew “business people” who “do this for a fee.”

“He’s gonna clean it. He’s gonna wash it,” the dealer told the undercover agent in August 2020. “I don’t know the ins and outs… he’s the lawyer.”

Two weeks later, the dealer accompanied the undercover agent and a confidential source to Mr. Jackson’s office on Pacific Avenue in Dallas, where the dealer vouched for the undercover agent’s trustworthiness.  Still posing as a drug trafficker, the undercover agent told Mr. Jackson that he would need to clean around “half a mil a month.”  

“It’s straight dope money,” the undercover agent admitted.

“I don’t care where the money comes from,” the attorney responded.

The pair allegedly negotiated a 4 percent fee, plus bonus, for the defendant to launder the money. Mr. Jackson suggested setting up a “shell corporation,” as well as a cash business like a coin laundry or car wash that would make it difficult for authorities to track proceeds. He said he could get everything up and running in two to four weeks. The pair agreed on a $100,000 trial run, with more to come, and the undercover agent departed the office with the dealer and confidential source.  

“This dude has been leading us. We are successful because of him,” the dealer told the undercover after they left. “Ray is the bomb… He’s a thug, he’s just got a law degree.”

In late September, the undercover agent again traveled to Mr. Jackson’s office to deliver $100,000 in cash made from purported drug sales.  

Before the undercover turned over the money, Mr. Jackson tried to clarify his long-term commitment to the drug trafficking organization.

“I can get out at any point, right? Long as ya’ll got your money?” the attorney asked.

“I know that we can come across as threatening, but we are not savages,” the undercover agent responded. “So when you are ready to be done, then we’re gonna be done.”

The undercover agent then handed Mr. Jackson a black backpack containing the cash. Mr. Jackson allegedly took the bag and looked inside. He warned the undercover agent and confidential sources to speak in code when they contacted him, and told them he would not put anything substantive in a text.

“You take care of me and I am gonna take care of you,” he told the undercover agent before he left.

The following month, a Jackson Law Firm bank account made three deposits totaling $95,000 into a DEA undercover bank account. Mr. Jackson allegedly kept $5,000, the 4 percent commission plus a 1 percent bonus.

In late November, the undercover agent returned to Mr. Jackson’s office to deliver $300,000 in purported drug sale cash. The undercover agent expressed concern about Mr. Jackson allowing anyone access to his bank accounts, since the amount of money had increased. Mr. Jackson assured the undercover that he had “full control and only control.”

Mr. Jackson allegedly began to transfer the money to the black backpack he’d kept from the prior transaction, then paused to ask if the undercover had taken steps to ensure the money did not smell like narcotics, to which the agent replied in the affirmative. Mr. Jackson continued to stuff cash into the backpack, struggling to zip it closed. When the undercover agent offered to have the confidential source escort Mr. Jackson to his vehicle, the attorney laughed and said,  “nobody knows, I take stuff down all the time.”

Over the following three months, a Jackson Law Firm bank account made eleven more deposits totaling $285,000 into undercover DEA bank accounts. Each deposit was less than $50,000, just as Mr. Jackson had promised. Mr. Jackson once again allegedly kept 5 percent, or $15,000.

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

If convicted, he faces up to 20 year in federal prison per laundered transaction.

The Drug Enforcement Administration’s Dallas Field Office conducted the investigation with the assistance of  IRS – Criminal Investigations and the Dallas Police Department. Assistant U.S. Attorney Courtney Coker, the Northern District of Texas’ Deputy Criminal Chief, is prosecuting the case along with Assistant U.S. Attorneys Juanita Fielden and Nashonme Johnson.

A Lubbock man who twice escaped from law enforcement custody has been sentenced to more than 35 years in federal prison for gun and drug crimes, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.

Mark Anthony Lucio, 40, pleaded guilty to escaping federal custody, possession with intent to distribute methamphetamine, and possession of firearms in furtherance of a drug trafficking crime.  He was sentenced Thursday morning by U.S. District Judge James Wesley Hendrix to 425 months in federal prison.

According to court documents, a Texas DPS trooper who was on patrol in Lubbock initiated a traffic stop of a vehicle on August 25, 2019.  The driver, later identified as Lucio, attempted to evade troopers resulting in a high-speed pursuit throughout Lubbock.  After traveling through an alley, Lucio and the passenger exited the vehicle and fled on foot.

Law enforcement continued pursuing the Lucio, who jumped a fence into a nearby backyard where he was arrested.  Lucio and the passenger were detained in handcuffs and placed into separate vehicles.

Officers then began to search the backyard where Lucio was arrested and located three separate bags of methamphetamine totaling approximately 300 grams.  Officers also recovered two loaded handguns from Lucio’s vehicle and on the ground next the vehicle.

When officers returned to their patrol cars, they realized that Lucio had managed to escape custody.  Lucio remained a fugitive until November 22, 2019, when he was arrested on state warrants by the Lubbock Police Department.

On December 11, 2019, Lucio was charged by federal indictment for firearm and drug crimes which he later pleaded guilty to in June 2020.  While awaiting sentencing, Mr. Lucio was remanded to federal custody at the Bailey County Jail in Muleshoe, Texas.

Juan Anthony Cordero, 25, visited Lucio at the Bailey County Jail on August 28, 2020.  During a conversation between the two men, which was recorded by the jail, Lucio discussed the details of a prison escape that was to occur the next day, including the planned time and what vehicle Cordero would be driving.

The following day, Lucio called Cordero minutes before the planned escape and advised him to be on alert.  Shortly after, Lucio crawled under a sally port door at the Bailey County Jail and ran into a waiting vehicle driven by Cordero.

Later that day, the Hale County Sheriff’s Office located Cordero’s vehicle in Plainview, Texas.  Cordero informed members of the United States Marshals Service that he supplied Lucio with a firearm and dropped him off at an address in Abernathy, Texas.

That same day, law enforcement was able to successfully take Lucio into custody at the Abernathy, Texas residence. The firearm the Cordero provided to Lucio during the escape was also recovered from the scene.

In February 2021, Cordero was sentenced to 14 months in federal prison for assisting Lucio’s escape.

The United States Marshal Service, Texas Department of Public Safety, Bailey County Sheriff’s Office, and Hale County Sheriff’s Office conducted the investigation.  Assistant U.S. Attorney Stephen Rancourt prosecuted the case.

The owner of a for-profit trade school has been convicted of bilking the U.S. Department of Veterans Affairs of $72 million and of misleading student veterans, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah. 

After approximately seven hours of deliberation, a federal jury on Thursday found Jonathan Dean Davis, the 43 year-old owner of Retail Ready Career Center, guilty of seven counts of wire fraud and four counts of money laundering. 

“Mr. Davis lied to multiple government agencies in order to swindle veterans out of their hard-won GI Bill benefits. While graduates of Retail Ready were just scraping by, Mr. Davis was living the high life,” said Acting U.S. Attorney Prerak Shah. “We are grateful to the jury for their time in helping us bring this defendant to justice. To undermine the VA is to insult the incredible sacrifices made by U.S. military veterans.”

“Owners of schools that are entrusted with the education of our nation’s veterans will be held accountable if they defraud the post-911 GI Bill program or veteran students,” stated VA OIG Special Agent in Charge Jeffrey Breen.  “Today’s guilty verdict was reached under the leadership of the U.S. Attorney’s Office, and as a result of the extensive work of special agents of the VA Office of Inspector General, the FBI, and the United States Postal Inspection Service.”

According to evidence presented at trial, Mr. Davis marketed Retail Ready’s six-week HVAC training course to veterans whose tuition and fees would be covered by the Veteran’s Educational Assistance Act of 2008, also known as the post-9/11 GI Bill. The defendant, who was essentially broke at the time of the crime, realized that he could charge $18,000 to $21,000 per student for the six-week course, if only he could get approval from the VA to accept GI Bill payments for tuition – which required prior approvals from the Texas Workforce Commission (TWC) and the Texas Veterans Commission (TVC).

These agencies required applicants to certify that they were not personally facing any criminal or civil actions, and to prove that their schools were established educational institutions in stable financial condition. Knowing he could not meet these requirements, Mr. Davis repeatedly lied and concealed information from these agencies.

“Several decisions lie ahead that will ultimately make the difference if I succeed or if I fail. More gut-wrenching conversations, more humiliating experiences, more lying is in order,” Mr. Davis wrote in an electronic journal he kept on his computer, which was recovered by federal agents during a search of Retail Ready. The journal became a key piece of evidence at trial.

Mr. Davis assured the TWC that he was not subject to any civil actions, when, in fact, he was facing numerous civil judgments over unpaid debts. He also told the TWC that he was not facing any criminal charges, when, in fact, he had a pending felony charge for theft of services. 

Chronicling his arrest in his journal, Mr. Davis wrote, “I was arrested on December 20th, last Friday night (a week ago) for a warrant that had been hanging around since April apparently. I didn’t know that I had one but it was for Theft of services for a bad check I had written in June or July of 2012 to the Doubletree for $25,000.00, which makes the charge a felony … The more complicated and damaging aspect is that having a felony arrest doesn’t do well with trying to apply for a school certificate.” 

Mr. Davis told the TVC that Retail Ready had been operating as a school for two years, when, in fact, the company had only existed for a few months and had never trained any students. He claimed that Retail Ready was fully prepared to train veterans, when, in fact, the company lacked a building and basic supplies.  He even lied to an independent accountant about the school’s financial condition, and then submitted false financial statements to both the TWC and the TVC. 

“I lied to the accountant that I am using for my audit service, I told him that I don’t have anything in the company name other than a lease and I left out having Jay being an employee and that I’ve had a bank account with expenses out of it because it is a disaster and wouldn’t project a very good picture,” Mr. Davis wrote in his journal.

Eventually, based upon Mr. Davis’ lies to the TWC and TVC, the VA accepted Retail Ready’s application, allowing Mr. Davis to charge veterans’ tuition and fees to the VA under the GI Bill.

In 2014, he began recruiting student veterans, promising to prepare them for lucrative careers in the heating and air conditioning industry. Upon entering the workforce, however, many of these veterans discovered that Retail Ready had failed to teach them many of the basic skills necessary for entry-level technician jobs.

Several veterans testified at trial that they had relied on the Retail Ready’s fraudulently obtained VA endorsement and were sorely disappointed about their post- Retail Ready career prospects and pay. They were also shocked to learn of the rate at which Retail Ready’s six-week course had drained their GI Bill benefits, testifying that they felt “used,” “taken advantage of,” “deceived,” and “bamboozled.” 

Even as his veteran graduates struggled to make ends meet, Retail Ready collected more than $72 million in GI Bill benefits from the VA.  Using the proceeds of his fraud, Mr. Davis purchased a $2.2 million home in Dallas, a $428,000 Lamborghini, a $280,000 Ferrari, and a $260,000 Bentley, among other things.

He now faces up to 180 years in federal prison. His sentencing hearing has been set for Sept. 15. 

The VA’s Office of Inspector General conducted the investigation with the assistance of the Federal Bureau of Investigation’s Dallas Field Office and the United States Postal Inspection Service’s Fort Worth Field Office.  Assistant U.S. Attorneys Douglas Brasher and Fabio Leonardi are prosecuting the case, and Assistant U.S. Attorney Dimitri Rocha is handling forfeiture. U.S. District Judge Brantley Starr presided over the trial. 

A Wichita Falls man who allegedly plotted to blow up a data center in Virginia has been charged with a 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 on Thursday after allegedly attempting to obtain an explosive device from an undercover FBI employee in Fort Worth. He was charged via criminal complaint and made his initial appearance in federal court before U.S. Magistrate Judge Jeffrey Cureton Friday morning.

“We are indebted to the concerned citizen who came forward to report the defendant’s alarming online rhetoric. In flagging his posts to the FBI, this individual may have saved the lives of a number of tech workers,” said Acting U.S. Attorney Prerak Shah. “We are also incredibly proud of our FBI partners, who ensured that the defendant was apprehended with an inert explosive device before he could inflict real harm. The Justice Department is determined to apprehend domestic extremists who intend to commit violence, no matter what political sentiment drives them to do so.”

“The FBI’s highest priority is ensuring public safety and we thoroughly investigate all credible threats,” said Dallas Special Agent in Charge Matthew J. DeSarno. “We continually ask the public to report suspicious or threatening behavior to law enforcement, and in this instance, that vigilance may have prevented injuries and the destruction of property.”

According to the complaint, the investigation began after a concerned citizen contacted the FBI on Jan. 8 about alarming statements posted on MyMilitia.com, a forum dedicated to organizing militia groups.

A user who went by the screenname “Dionysus” stated he was planning to “conduct a little experiment,” that he said would “draw a lot of heat” and could be “dangerous.” When another user asked what outcome Dionysus desired, he responded, “death.”

A confidential source provided the FBI with the user’s email address, which was registered to Mr. Pendley.

A subsequent search of the defendant’s Facebook account showed that he had boasted about being at the U.S. Capitol on Jan. 6. 

In private messages, he allegedly told friends that although he did not actually enter the Capitol building, he did reach the “platform,” where he swiped a piece of glass from a broken window and interacted with police. He said he brought a sawed-off AR rifle to D.C., but left the weapon in his car during his movement to the Capitol.

In late January, Mr. Pendley began using Signal, an encrypted messaging app, to communicate with another confidential source. The source told the FBI that Mr. Pendley allegedly stated he planned to use C-4 plastic explosives to attack prominent tech company's data centers in an attempt to “kill of about 70% of the internet.”

On March 31, 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 he planned to attack web servers that he believed provided services to the FBI, CIA, and other federal agencies. He said he hoped to bring down “the oligarchy” currently in power in the United States.

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. Mr. Pendley was then arrested by FBI agents who monitored the delivery of the inert devices.

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

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

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.

UPDATE (4/14/21): Mr. Pendley has been ordered detained pending trial. 

 

SENTENCING – MATTHEW ALLEN

On April 6, Matthew Allen, 37, was sentenced to 5 years in federal prison for attempted arson.  Allen and another man drove from Houston to Dallas to commit arson of a local night club.  Allen and the man wore Tyvek suits and used a crowbar to break into the nightclub.  Once inside, Allen poured gasoline throughout the interior of the building.  An unknown ignition source lit the gasoline causing Allen to flee the location.  Once the fire flamed out, Allen returned to the night club and observed the man whom he arrived with dead from severe burns.  Allen retrieved car keys from the man’s motionless body and returned to Houston.  The ATF, FBI, Dallas Fire Department, and Dallas Police Department conducted the investigation.  Assistant U.S. Attorney Walt Junker prosecuted the case.

GUILTY PLEA – ELLIS CHARLES WHITE

On April 6, Ellis Charles White, 45, plead guilty to conspiracy to possess with intent to distribute a controlled substance.  White sold synthetic cannabinoids to an undercover officer at a Dallas area store that had been under investigation due to sustained complaints about drug trafficking and illegal gambling on the premises. Dallas Police executed a search warrant at the store and seized synthetic cannabinoids, methamphetamine, a firearm, and ammunition.  White faces up to 20 years in federal prison for his crimes.  The DEA and the Dallas Police Department conducted the investigation.  Assistant U.S. Attorney Myria Boehm prosecuted the case.

SENTENCING – ANTHONY RENEE ESPINOSA

On March 30, Anthony Renee Espinosa, 29, was sentenced to 108 months in federal prison for transporting and shipping child pornography.  Espinosa admitted that he has been involved in child pornography offenses for approximately six years and uses websites and mobile to receive, distribute and view child pornography.  He also admitted that he joined specific social media groups in which users would share child pornography and would trade material with other Kik users in exchanged for other child pornography.  Law enforcement seized Espinosa’s cellular devices and located over 300 images of child pornography. Homeland Security Investigations conducted the investigation.  Assistant U.S. Attorney Abe McGlothlin prosecuted the case.

A man who embezzled more than $120,000 in social security disability benefits has been sentenced to 15 months in federal prison, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.

Robert Salinas, 53, pleaded guilty in June 2020 to theft of government funds. He was sentenced on Thursday by Chief U.S. District Judge Barbara M.G. Lynn.

According to plea papers, in 2010, Mr. Salinas began receiving Social Security Administration (SSA) disability benefits for back problems, which he continued to collect through 2018. He also collected auxiliary benefits for his minor daughter.

The defendant admitted that in 2011, he took a trucking job with AMX, which included loading, unloading, and driving.

Knowing that the SSA would not continue to pay him benefits if they knew he was employed, Mr. Salinas failed to disclose his change in employment status to the SSA and concealed his job from the government by applying for and working under an alias, using a false social security number, alien registration number, and counterfeit permanent residence card.  

From July 2011 through October 2018, Mr. Salinas collected $121,743.30 in Title II disability insurance benefits and child auxiliary benefits to which he was not entitled, he admitted.

The case against Mr. Salinas was initiated pursuant to receiving a referral from the SSA fraud hotline, 1-800-269-0271.

“We will continue to aggressively defend the integrity of Social Security’s disability programs to ensure those benefits remain available to those who truly qualify,” said Adam Schneider, Special Agent-in-Charge of the of the SSA OIG Dallas Field Division. “I want to thank the U.S. Attorney’s Office for their support, and their efforts to bring this individual to justice and recover funds for Social Security.”

The Social Security Administration Office of Inspector General conducted the investigation. Assistant U.S. Attorney Katherine Miller and SSA Special Assistant U.S. Attorney Jenna Rudoff prosecuted the case.

A federal jury has convicted a Muleshoe, Texas man of child pornography crimes, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.

After approximately forty minutes of deliberation, a federal jury on Tuesday found 25-year-old Felipe Mata-Benavidez guilty of production of child pornography.

According to evidence presented at trial, Mr. Mata-Benavidez attempted to sexually assault an 11-year-old relative at her home in Muleshoe.  During the assault, the victim’s mother walked in on Mr. Mata-Benavidez attempting to have sexual intercourse with minor. 

The young girl’s mother stopped the assault and fled the residence with her young daughter.  A short time later, a concerned neighbor notified law enforcement after hearing about the incident. 

The Muleshoe Police Department interviewed Mr. Mata-Benavidez after receiving a report that he had attempted to sexually assaulted the 11-year-old girl.  During an interview Mr. Mata-Benavidez, he showed detectives his cell phone, which contained his messages with the girl.

In those messages, Mr. Mata-Benavidez told the 11-year-old to send him explicit photographs of herself.  When she refused, Mr. Mata-Benavidez bullied the girl until she conceded, texting Mr. Mata-Benavidez a lewd and lascivious image.  He then commented saying the girl was beautiful and telling the her not to “share with anybody else… because it’s mine.”  Mr. Mata-Benavidez then continued to ask for the 11-year-old to send more explicit images.

Mr.  Mata-Benavidez now faces up to 30 years in federal prison.  A sentencing hearing has been set for July 8, 2021.

The Federal Bureau of Investigation Lubbock Resident Agency, the Muleshoe Police Department, and Homeland Security Investigations conducted the investigation.  Assistant U.S. Attorneys Callie Woolam and Matthew McLeod prosecuted the case.  U.S. District Judge James Wesley Hendrix presided over the trial.

An Arlington man whose fraudulent tax filings netted him more than $935,000 in improper refunds has been sentenced to five years in federal prison and ordered to pay $495,368 in restitution to the IRS, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.

Glenn Edwards Boggus, 34, pleaded guilty in January 2020 to filing a false claim for refund from the IRS. He was sentenced Friday by U.S. District Judge Karen Gren Scholer.

In plea papers, Mr. Boggus admitted that in January 2017, he filed a fraudulent individual income tax return, Form 1040, that claimed a $1.14 million tax refund for tax year 2016. Along with his fraudulent 1040, he submitted a false wage and tax statement, Form W-2, reporting $5,647,888 in wages and $3,333,116 in withholdings, which he knew to be false. (At his sentencing hearing, prosecutors introduced evidence that the company from which he’d purportedly collected his wages was fake.)

The IRS sent Mr. Boggus a check in the amount of $935,432.56 for his alleged tax refund. In March 2017, Mr. Boggus attempted to deposit the check into an account he opened at Regions Bank.

As part of his plea, Mr. Boggus also admitted that for tax years 2013 through 2015, he executed a similar scheme to defraud the government, submitting false tax returns claiming he had paid certain withholdings and was entitled to tax refunds. He said he knowingly filed his tax returns in which he claimed fraudulent tax refunds from the IRS in the amount of $33,489 for tax year 2013, $323,765 for tax year 2014, and $258,407 for tax year 2015.

IRS - Criminal Investigation investigated the case. Assistant U.S. Attorney L. Rachael Jones prosecuted the case.

SENTENCING – ELIZABETH ANN EDWARDS

On March 26, Elizabeth Ann Edwards, 35, was sentenced to 121 months in federal prison for distribution of a mixture or substance containing methamphetamine.  Edwards drove an individual to a location to purchase methamphetamine from a woman. When they arrived, Edward parked the care and called the woman over.  The passenger in the Edwards’ vehicle paid the woman for the methamphetamine which was delivered in a green baggie.  The DEA and the Texas Department of Public Safety conducted the investigation.  Assistant U.S. Attorney Nancy Larson prosecuted the case.

SENTENCING – CHRISTY LYNN HERPECHE

On March 26, Christy Lynn Herpeche, 36, was sentenced to 37 months in federal prison for distribution of a mixture or substance containing methamphetamine.  On January 20, 2020, Herpeche entered into negotiations with another individual to sell them methamphetamine.  She made four transactions of methamphetamine.  The DEA and the Texas Department of Public Safety conducted the investigation.  Assistant U.S. Attorney Nancy Larson prosecuted the case.

SENTENCING – ALEXIS GONZALEZ-BANALES

On March 26, Alexis Gonzalez-Banales, 23, was sentenced to 5 years in federal prison for illegal transportation of an alien.  The Wichita Falls Sheriff’s Office conducted a traffic stop of a sport utility vehicle driven by Gonzalez-Banales.  The vehicle was found to contain multiple illegal aliens who were all citizens of Mexico. Gonzalez-Banales was transporting the group to various locations in across the United States including Arizona, Texas, Alabama, Georgia, and Florida. HSI and Wichita Falls Sheriff’s Office conducted the investigation.  Assistant U.S. Attorney Levi Thomas prosecuted the case.

GUILTY PLEA – JORGE LUIS GONZALEZ

On March 30, Jorge Luis Gonzalez, 27, plead guilty to possession with intent to distribute a controlled substance.  Lancaster police officers were dispatched concerning a shooting complaint.  When officers arrived at a location, the victim advised officers that they had been shot at by two men from a residential location.  Law enforcement responded to the location of the shooting where they recovered several shell casings in the driveway.  Additionally, law enforcement made contact with Gonzalez. He was arrested after officers located methamphetamine in his pants pockets.  Inside the residence, law enforcement seized methamphetamine, heroin, promethazine, and methamphetamine in the conversion process from liquid to crystal form.  Gonzalez faces up to 20 years in federal prison for his crimes.  The DEA and Lancaster Police Department conducted the investigation. Assistant U.S. Attorney Myria Boehm is prosecuting the case.

SENTENCING – BEI-JING TASHAWNA WALKER

On March 31, Bei-Jing Tashawna Walker, 27, was sentenced to 4 years probation for accessory after the fact. In February 2018, Walker was driving her vehicle and the front passenger, Donnie Orlondo Ferrrell, fired a handgun from the passenger window in the direction of another motorist.  Walker witnessed the other motorist crash his vehicle into a concrete retaining wall after the shots were fired by Ferrell.  She continued to drive to her residence and allowed Ferrell to stay while he attempted to avoid law enforcement detection.  It was not until police arrested Ferrell at Walker’s residence that she learned the motorist had been killed by a bullet fired from Walker’s handgun.  The United States Postal Inspection Service conducted the investigation.  Assistant U.S. Attorneys P.J. Meitl and John Kull prosecuted the case.

A Shallowater, Texas man was sentenced today to life in federal prison for enticement of an 11-year-old relative, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.

On December 4, 2020, just after 15 minutes of deliberation, a federal jury convicted John David Martinez, 34, of enticement of a minor.  Mr. Martinez was sentenced today by U.S. District Judge James Wesley Hendrix.

“This defendant took full advantage of a vulnerable minor relative through a series disturbing actions,” said Acting U.S. Attorney Prerak Shah.  “His admissions provide alarming insight into the methods he used to entice a young child for his own criminal gratification.  Today’s sentence is the only way to guarantee that he will never again harm children.”

“We applaud the quick action of the child’s caregiver to notify law enforcement of Mr. Martinez’s reprehensible conduct,” said FBI Dallas Special Agent in Charge Matthew DeSarno. “Today’s sentence reflects the heinous nature of the crimes committed by Mr. Martinez and removes this dangerous predator from our community. We will continue working with our partners to protect children and hold offenders accountable for their crimes.”

According to evidence presented at trial, Mr. Martinez initiated a text conversation with an 11-year-old relative in July 2018.

The two exchanged 7,702 text messages over a one-month period during which 31-year-old Martinez bullied the child into agreeing to have sex with him. 

In one text message, Mr. Martinez asked the child, “you wanna have sex with me?”  He followed it up with another message stating, “this stays between us.”

Fortunately, the child’s babysitter spotted the messages on her phone and notified the child’s parents and law enforcement immediately.  The investigation revealed that Martinez had a history of sexually abusing minors.

The FBI Lubbock Resident Agency, Shallowater Police Department, and Lubbock County Sheriff’s Department conducted the investigation.  Assistant U.S. Attorneys Callie Woolam and Sean Long are prosecuting the case.

A 46-year-old Dallas man was sentenced to 25 years in federal prison of a gun crime, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.

Keldric Walker Thomas pleaded guilty in February 2020 to possession of a firearm in furtherance of a drug trafficking crime.  Mr. Thomas was sentenced on Monday by U.S. District Judge David C. Godbey.  Mr. Thomas was convicted in 2003 of possession of a firearm in furtherance of a drug trafficking crime.

According to plea papers, in July 2018, Dallas police officers observed Mr. Thomas committing multiple traffic offenses while operating a Chevrolet Malibu.  Law enforcement made contact with Mr. Thomas and he was placed under arrest.

During a subsequent search of Mr. Thomas’s person, law enforcement recovered a .45 caliber magazine containing rounds of ammunition, a green tipped rifle round, cocaine, and methamphetamine.  Mr. Thomas also possessed $2,364 in U.S. currency.

Officers also obtained a search warrant for Mr. Thomas’ Chevrolet Malibu.  Inside the vehicle, law enforcement located a semi-automatic pistol and large quantities of methamphetamine and heroin.

The Bureau of Alcohol, Tobacco, Firearms and Explosives led the investigation with the assistance of the Dallas Police Department.  Assistant U.S. Attorney Renee Hunter prosecuted the case.

A Dallas man pleaded guilty today to attempting to obstruct the due administration of the internal revenue laws of the United States, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.

According to court records, between 2009 and 2017, David Marcus Easler, 58, earned approximately $836,699 in wages. As of January 2019, Mr. Easler had an outstanding tax balance of approximately $326,257. This substantial tax due was a result of his longstanding failure to pay his income taxes dating back to 1996. 

Since at least 2004, the IRS sent several Notices of Levy on Wages to Mr. Easler to collect past due income taxes. When the IRS became aware of his employment with a particular company, the IRS attempted to collect past due income taxes by either withholding taxes from his salary, or by using tax levies and/or garnishment of wages from Mr. Easler's employer.

In direct response to IRS efforts to collect his past due taxes, Mr. Easler filed four different voluntary petitions for bankruptcy. With some of these bankruptcy filings, Mr. Easler submitted false and fraudulent tax returns and other tax return related documents. For example, as part of his 2009 bankruptcy filing, he submitted several income tax returns that falsely reported that he made “0” dollars of taxable income.

In 2011 and 2013, Mr. Easler signed and filed with the IRS three false U.S. Nonresident Alien Income Tax Returns, Form 1040NR, in which he fraudulently represented that he was a non-resident of the United States living in the foreign country of Texas. In these forms, Mr. Easler also falsely claimed that he was due tax refunds.

From 2012 through 2015, Mr. Easler provided several of his employers with false Employee's Withholding Certificates, Form W-4, in which he fraudulently inflated the number of exemptions to reduce the amount of income taxes withheld from his paychecks. On some Forms W-4, Mr. Easler falsely claimed he was "exempt" from the withholding of any taxes from his paychecks.

On November 17, 2014, Mr. Easler testified at bankruptcy hearing before a United States Bankruptcy Judge. During the hearing, the Bankruptcy Judge told Mr. Easler that his theory to justify his non-payment of income taxes was "all a big ruse to keep people from paying taxes.” The United States Bankruptcy Judge also told Mr. Easler that his theory amounted to a ''tax evasion system" and said if Mr. Easler continued to refuse to pay his income taxes, "it's not going to do anything for you in the courts of this country. You're just wasting your time."

Even after these warnings, Mr. Easler did not change course and continued his efforts to impede the IRS by filing two additional bankruptcy petitions in 2015 and 2016 to obstruct IRS tax collection efforts.

“Every citizen of this country has a lawful duty to report their taxable income and pay their fair share of taxes: there is no gray area on the subject,” said Mark Pearson, IRS Criminal Investigation Special Agent in Charge. “Not only did Mr. Easler choose to ignore his duty to pay taxes for over 20 years, he repeatedly attempted to obstruct IRS collection efforts.  Mr. Easler is now a convicted felon. The IRS and Department of Justice remain determined and vigilant in investigating and prosecuting those who willfully refuse to pay taxes on their income and thus undermine the integrity of the U.S. tax system."

Mr. Easler now faces up to three years in federal prison. His sentencing has been set for August 13, 2021.

IRS Criminal Investigation is conducting the investigation. Assistant U.S. Attorney David Jarvis is prosecuting the case.

Sixteen individuals operating a heroin trafficking ring have been convicted and sentenced to federal prison following an investigation led by the Drug Enforcement Administration and Texas Department of Public Safety, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.

This marks the third round of sentencings in a larger heroin trafficking investigation dubbed “Operation Last Trip.”  In total, forty defendants have been prosecuted for trafficking heroin, and various other drugs, including meth, between 2017 and 2019, according to court documents.

The sixteenth and final defendant in this round, 27-year-old Erica Anne Maloney, was sentenced Friday by U.S. District Judge Reed C. O’Connor to more than 3 years imprisonment for her role in the heroin distribution conspiracy.

According to court documents, investigators identified multiple individuals who traveled from Wichita Falls to the Dallas area repeatedly for the purpose of purchasing heroin and other illicit drugs.  The heroin buyers would then transport the opioids back to Wichita Falls to sell to customers.

“A highly-addictive and deadly opioid, heroin has plagued communities across Texas,” said Acting U.S. Attorney Shah.  “The U.S. Attorney’s Office, the DEA and state and local law enforcement partners are committed to dismantling distribution networks and prosecuting drug traffickers.”

“These sentences reflect a win for all citizens of North Texas who value safe and drug-free communities,” said Eduardo A. Chávez, Special Agent in Charge of DEA Dallas.  “These individuals who spent their days distributing heroin will now spend nights in jail while the men and women of the DEA Dallas Field Division will continue their efforts to keep heroin off our streets.”

Other defendants connected in this case received the following prison sentences:

•            Eric Casey O’Neill, aka “Irish”:  120 months

•            Erica Renee Robertson:  37 months

•            Leslie Amanda Pavlick:  71 months

•            Oland Randle Robison, aka “Doodle:  235 months

•            Marquise Day-Leon Isham, aka “Black”:  70 months

•            Sabrina Marie Berreles:  6 months

•            Curtis Lee Buss:  36 months

•            Jessica Maria Lance:  46 months

•            Michael Thomas Leon, aka “Mikey”:  37 months

•            David Wayne Vinson:  84 months

•            Jeremey James Fields:  48 months

•            Amy Faye Moore:  24 months

•            Farrah Sage Harwell:  8 months

•            Kayla Leann Gray:  46 months

•            Charles William Wallace IV:  37 months

The Drug Enforcement Administration, the Texas Department of Public Safety Criminal Investigations Division led the investigation with the assistance of the Wichita Falls Police Department Organized Crime Unit, the Wichita County District Attorney’s Office Drug Enforcement Division, the Wichita County Sheriff’s Office and the Duncanville Police Department.

Assistant U.S. Attorney Robert Boudreau was in charge of these prosecutions.

SENTENCING – BRIAN KEITH MCKENZIE

On March 19, Brian Keith McKenzie, 53, was sentenced to 5 years in federal prison for mailing threatening communications.  In February 2018, McKenzie mailed letters to the President and a federal judge containing homicidal and threatening comments.  Additionally, McKenzie ground up medication into a white powdery substance to make it appear like Anthrax and placed it in the envelopes.  When questioned by federal law enforcement, McKenzie stated that he had access to firearms and that he and his friends make explosives with home cleaning products and ammonium nitrates.  The United States Secret Service and FBI conducted the investigation.  Assistant U.S. Attorney Sid Mody prosecuted the case.

SENTENCING – CALVIN JAMES THOMAS

On March 24, Calvin James Thomas, 35, was sentenced to 57 months in federal prison for conspiracy to possess with the intent to distribute and the distribution of cocaine. Thomas purchased cocaine from a drug dealer who controlled two drug distribution houses in Dallas. He purchased the cocaine in preset quantities and then resold the drugs to others for a profit. The DEA conducted the investigation.  Assistant U.S. Attorney Suzanna Etessam prosecuted the case.

GUILTY PLEA – GEORGE RODRIGUEZ

On March 24, George Rodriguez, 34, plead guilty to possession with intent to distribute cocaine. In October 2018, undercover officers purchased two pounds of marijuana from Rodriguez.  During the transaction, Rodriguez agreed to provide the undercover officers with cocaine in the future. Over the next several months, Rodriguez provided or facilitated five cocaine transactions.  Rodriguez faces up to 20 years in federal prison for his crimes.  The DEA, Greenville County Sheriff’s Office, and Greenville Police Department conducted the investigation. Assistant U.S. Attorney Suzanna Etessam prosecuted the case.

SENTENCING – JONATHAN MARKEY CHOPANE aka “GOTTI”

On March 25, Jonathan Markey Chopane, 36, was sentenced to 7 years in federal prison for two counts of use of a facility of interstate commerce in aid of a racketeering enterprise.  Chopane began communicating with a minor female via Instagram.  He purchased a bus ticket for her to travel from Dallas to Houston to perform commercial sex acts that took place in hotels.  Chopane arranged the commercial sex acts with the victim on his cell phone and then shared in the proceeds that the victim made.  HSI conducted the investigation.  Assistant U.S. Attorney Nicole Dana prosecuted the case.

An Arizona man who held up an Army National Guard convoy at gunpoint on Monday has been federally charged, announced Acting U.S. Attorney for the Northern District of Texas  Prerak Shah.

Larry Lee Harris, 66, was charged via criminal complaint with assaulting a federal officer with a deadly weapon. He will be set for an initial appearance in federal court at a later date.

According to the complaint, Mr. Harris allegedly pointed a firearm at a three-van Army National Guard convoy engaged in official duties related to the COVID-19 national emergency.

National Guard personnel reported to police that Mr. Harris, driving a white Chevrolet pickup, began following the officers down the I-27 in Lubbock, then pulled alongside them and brandished a weapon. All three vehicles pulled over.

Mr. Harris, identifying himself as a detective, allegedly approached the National Guard vehicles with his firearm drawn. Ranting about a missing 41-year-old-woman and a 12-year-old girl, he demanded to search the vans. National Guard personnel complied. Mr. Harris searched the vans and then began to drive away.

As the National Guard convoy started to depart, Mr. Harris allegedly made an erratic U-turn and once again forced the vans to stop. He then demanded to search an engine compartment.

The National Guard called 911. The Idalou Police Department arrived on scene and took Mr. Harris into custody without incident. Inside his waistband, they found a Colt .45 semiautomatic pistol, loaded with a full magazine.

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

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

He is also facing state charges of aggravated assault, unlawful restraint, impersonating a public servant, unlawfully carrying a weapon, and interfering with military forces.  

Homeland Security Investigations’ Dallas Field Office, the Idalou Police Department, the Texas Department of Public Safety, and the Lubbock County Sheriff’s Office conducted the investigation with the complete cooperation of the Texas National Guard. Assistant U.S. Attorneys Jeffrey Haag and Callie Woolam are prosecuting the case.

Forty-six defendants, including two doctors, a nurse practitioner, and five pharmacists, have been convicted of operating an $18 million pill mill scheme, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.

They were arrested in 2020 by the DEA’s Fort Worth Tactical Diversion Squad in “Operation Wasted Daze.”

The lead defendant, 61-year-old oncologist Caesar Mark Capistrano, was charged with multiple counts of conspiracy to dispense hydrocodone and possession with intent to distribute hydrocodone or carisoprodol.  He and five coconspirators – pharmacists Ethel Oyekunle-Bubu, Wilkinson Oloyede Thomas, and Christopher Kalejaiye Ajayi as well as recruiter Brian Kincade and recruit  Alphonse Fisher – were convicted at trial. The remaining 41 defendants pleaded guilty prior to trial.

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.

“Pill mills funnel potentially deadly opiates onto our streets, wreaking havoc in communities beset by addiction,” said U.S. Attorney Prerak Shah. “The doctors, pharmacists, and clinic staff convicted in this case violated not only medical ethics, but federal law as well. We are proud to bring them to justice, and we remain committed to fighting the opioid epidemic where it matters most – at the point of entry.”

“Mr. Capistrano and his criminal associates have violated the public’s trust and stained the image of such a vital and noble profession in our society, especially during a time where we need our front line healthcare workers the most, said DEA Dallas Field Division Special Agent in Charge, Eduardo A. Chávez. “Profiting off the lives of those addicted to controlled prescription drugs stops now. DEA Fort Worth and all of our North Texas law enforcement partners will never waver and always ensure justice is the best medicine.” 

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
   
• 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
   

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 
   
• 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.
   

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
   
• Cynthia Denise Cooks
  Pleaded guilty on 11/25/2020 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.
   

Dr. Capistrano now faces up to 100 years in federal prison, 20 years per count. His coconspirators also face up to 20 years per count of conviction. 

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 prosecuted the case. 

A Mansfield man will be spending time behind bars for criminal contempt, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.

Larry Reynolds, 61, pleaded guilty to criminal contempt in February 2021. He was sentenced yesterday to six months in federal prison by U.S. District Judge Jane J. Boyle.

According to court documents, Mr. Reynolds, the former owner and general manager of Mansfield Boat and RV Storage, filed for Chapter 11 bankruptcy in December 2018.  The U.S. Bankruptcy Court limited Mr. Reynolds use of cash and collateral and prohibited his business from making payments or reimbursements to himself.

In April 2019, Mr. Reynolds testified that he had withdrawn money from the Mansfield Boat and RV Storage bank account totaling $96,306 to pay for personal items including payments towards his home mortgage.  At a subsequent hearing, Mr. Reynolds admitted to transferring and additional $45,000 from the Mansfield Boat and RV Storage bank account against the direction of the Court.

During the course of the bankruptcy proceedings, Mr. Reynolds was found in civil contempt seven times for failing the repay approximately $140,000 in funds that he misappropriated from his business’ bankruptcy estate without court authorization, failing to appear at a scheduled hearing, and failing to comply with accounting and information request by the Court.

In July 2020, the U.S. Bankruptcy Court for the Northern District of Texas referred the case to the United States Attorney’s Office for criminal contempt prosecution against Mr. Reynolds.

The FBI Dallas Field Office conducted the investigation.  Assistant U.S. Attorney Shane Read prosecuted the case.

A Longview man was sentenced today to more than 30 years in federal prison for attempted enticement of a child, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.

Keith Lee Merchant – a 41-year-old man who was previously convicted in 2004 on state charges of sexually exploiting children – pleaded guilty to one count of attempted enticement of a child in October.  He was sentenced today to 365 months in federal prison by U.S. District Judge Jane J. Boyle.

According to court documents, a federal agent acting in an undercover capacity responded to an online advertisement on a social media website entitled, “Taboo Family Fun – M4F 37 (Near You).”  Within minutes, Mr. Merchant, the creator of the ad, replied to the undercover agent and initiated a three-week long, sexually explicit dialog via social media and Kik, a messaging app popular among teenagers.

During the communications, Mr. Merchant informed the undercover agent that he previously had sexual relations with young girls and that he was willing to have sexual relations with the undercover officer’s 10-year old daughter.  Mr. Merchant expressed his desire to travel from his home in Longview to meet the 10-year-old girl and spend the night with her.  He also promised to bring the young girl lingerie stating “got little miss a gift… I hope she likes purple.”

On March 23, 2018, Mr. Merchant traveled from his home in Longview to an apartment complex in Garland where he believed he was meeting the mother her daughter.  When Mr. Merchant arrived at the apartment, FBI agents and Garland police officers were at the location and he was taken into custody. Inside his pickup truck, law enforcement located an overnight bag, a pink stuffed animal, a box of candy, and purple lingerie.

When questioned by law enforcement, Mr. Merchant admitted to posting the advertisement, “Taboo Family Fun” and agreed that the term “taboo” meant “underage.” Law enforcement forensically searched Mr. Merchant’s cell phone revealing his web history, internet searches, and bookmarks, all showing his interest in sexually exploiting children.

The FBI Dallas Field Office and the Garland Police Department conducted the investigation.  Assistant U.S. Attorney Camille Sparks prosecuted the case.

This case was brought as part of Project Safe Childhood, a Justice Department initiative designed to combat the growing epidemic of child sexual exploitation  and abuse nationwide.  The initiative pools federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims.

 

A Texas man pleaded guilty today to orchestrating a fraudulent scheme to obtain approximately $24.8 million in forgivable Paycheck Protection Program (PPP) loans and laundering the proceeds.

According to court documents, Dinesh Sah, 55, of Coppell, admitted that he submitted 15 fraudulent applications, filed under the names of various purported businesses that he owned or controlled, to eight different lenders seeking approximately $24.8 million in PPP loans. Sah claimed that these businesses had numerous employees and hundreds of thousands of dollars in payroll expenses when, in fact, no business had employees or paid wages consistent with the amounts claimed in the PPP applications. Sah further admitted that he submitted fraudulent documentation in support of his applications, including fabricated federal tax filings and bank statements for the purported businesses, and falsely listed other persons as the authorized representatives of certain of these businesses without the authority to use their identifying information on the applications.

“As the nation was crippled by a global pandemic, Sah fraudulently obtained over $17 million in PPP funds intended to help legitimate small businesses and spent that money on luxury cars and multiple homes,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “As our nation continues to fight this unprecedented virus, the Department of Justice and its law enforcement partners remain committed to aggressively pursuing individuals who exploit COVID-relief programs and to ensuring that these ill-gotten gains are returned.”

“The Paycheck Protection Program was designed to aid struggling business owners, not to line the pockets of crafty profiteers,” said Acting U.S. Attorney Prerak Shah of the Northern District of Texas. “Even as fellow businesspeople tried desperately to procure the funds they needed to keep their business afloat, Sah dipped into federal coffers to fund his lavish lifestyle. The Justice Department is committed to protecting the PPP from fraud and deceit.”

“We will continue to vigorously investigate cases involving attempts to defraud the Paycheck Protection Program and other crimes against the financial institutions the FDIC insures and regulates,” said Special Agent in Charge Anand M. Ramlall of the Federal Deposit Insurance Corporation – Office of Inspector General (FDIC-OIG). “Sah’s egregious fraud committed to fund his luxurious lifestyle is unacceptable under any circumstances, but especially so when done against a program designed to help Americans recover from the ongoing pandemic. We appreciate the cooperation and coordination of our law-enforcement partners on these types of investigations.”

Sah admitted that, based on his false statements and fabricated documents, he received over $17 million in PPP loan funds and diverted the proceeds for his personal benefit, using them to purchase multiple homes in Texas, pay off the mortgages on other homes in California, and buy a fleet of luxury cars, including a Bentley convertible, Corvette Stingray, and Porsche Macan. Sah also sent millions of dollars in PPP proceeds in international money transfers. As part of his guilty plea, Sah agreed to forfeit, among other property, eight homes, numerous luxury vehicles, and more than $7.2 million in fraudulent proceeds that the government has seized to date. 

Sah pleaded guilty to one count of wire fraud and one count of money laundering in the Northern District of Texas. He will be sentenced at a later date and faces a maximum penalty of 30 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The Dallas Field Offices of the FDIC-OIG, IRS-Criminal Investigation, and U.S. Treasury Inspector General for Tax Administration are investigating the case.

Assistant Deputy Chief Anna G. Kaminska of the Criminal Division’s Fraud Section and Section Chief Katherine Miller of the U.S. Attorney’s Office for the Northern District of Texas are prosecuting the case. Assistant U.S. Attorneys Erica Hilliard and Dimitri Rocha are handling the asset-forfeiture component of the case. 

The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.

The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1%. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal on the PPP loan to be forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses at least a certain percentage of the PPP loan proceeds on payroll expenses.

The Fraud Section leads the Department of Justice’s prosecution of fraud schemes that exploit the CARES Act. In the months since the CARES Act was passed, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases. The Fraud Section has also seized more than $65 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real-estate properties and luxury items purchased with such proceeds. More information can be found at: https://www.justice.gov/criminal-fraud/cares-act-fraud.

Anyone with general information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

A federal jury has convicted a five-time felon and suspected shooter of a gun crime, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.

Following a two-day trial and just 30 minutes of deliberation, a jury in Fort Worth found Abedel Sattar Alkheqani, 27, guilty of being a felon in possession of a firearm and ammunition.

According to evidence presented at trial, Mr. Alkheqani was arrested in March 2020, after officers with the Arlington Police Department identified him as a suspect in a shooting that occurred in a residential neighborhood in Arlington, Texas.

Witnesses told law enforcement that the suspect exited a pickup truck, pistol in hand, and fired three times as the victim tried to flee. The victim was struck multiple times and hospitalized, but ultimately recovered.

Based on witnesses’ descriptions of the suspect’s truck as well as surveillance video, officers were able to locate the truck used in the shooting approximately a half-mile from the scene.  They determined the truck was registered to Mr. Alkheqani and noted that he matched witnesses’ descriptions of the shooter.

When officers pulled Mr. Alkheqani over a few hours later, they discovered marijuana in his jacket pocket and arrested him for possession. He then gave written consent for officers to search his home and vehicle.

During the search of Mr. Alkheqani's truck, law enforcement recovered a single round of 9mm caliber ammunition, which matched the manufacturer and caliber of the shell casings recovered at the shooting scene. At his residence, they recovered a .22 caliber rifle beside his bed and a magazine containing ammunition for the rifle within arm’s reach.

Mr. Alkheqani told officers that the rifle was his wife’s, but in recorded jailhouse calls, Mr. Alkheqani asked his wife, “is my rifle still there?” before correcting himself and stating, “I mean your rifle.” (Audio file available here.)

Forensic analysis later revealed that gunshot residue was recovered from Mr. Alkheqani’s body on the day of the shooting.

A query of Mr. Alkheqani's criminal history revealed five prior felony convictions, including four for burglary of a habitation – all offenses that made it a federal crime for him to possess a firearm or ammunition.

Based on the defendant’s multiple prior felony convictions, he is subject to a potential statutory sentencing enhancement under the Armed Career Criminal Act, which raises the maximum penalty for offenders with three previous convictions for a violent felony or serious drug offense. Mr. Alkheqani now faces a sentence of between 15 years and life in federal prison. His sentencing is set for Aug. 10, 2021.

The Arlington Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives’ Dallas Field Division conducted the investigation. Assistant U.S. Attorneys Levi Thomas and Frank Gatto tried the case. Senior U.S. District Judge Terry R. Means presided over the trial.

A Coppell businessman pleaded guilty today to orchestrating a fraudulent scheme to obtain approximately $24.8 million in forgivable Paycheck Protection Program (PPP) loans and laundering the proceeds.

According to court documents, Dinesh Sah, 55, of Coppell, admitted that he submitted 15 fraudulent applications, filed under the names of various purported businesses that he owned or controlled, to eight different lenders seeking approximately $24.8 million in PPP loans.

Sah claimed that these businesses had numerous employees and hundreds of thousands of dollars in payroll expenses when, in fact, no business had employees or paid wages consistent with the amounts claimed in the PPP applications.

Sah further admitted that he submitted fraudulent documentation in support of his applications, including fabricated federal tax filings and bank statements for the purported businesses, and falsely listed other persons as the authorized representatives of certain of these businesses without the authority to use their identifying information on the applications.

“The Paycheck Protection Program was designed to aid struggling business owners, not to line the pockets of crafty profiteers,” said Acting U.S. Attorney Prerak Shah of the Northern District of Texas. “Even as fellow businesspeople tried desperately to procure the funds they needed to keep their business afloat, Sah dipped into federal coffers to fund his lavish lifestyle. The Justice Department is committed to protecting the PPP from fraud and deceit.”

“As the nation was crippled by a global pandemic, Sah fraudulently obtained over $17 million in PPP funds intended to help legitimate small businesses and spent that money on luxury cars and multiple homes,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “As our nation continues to fight this unprecedented virus, the Department of Justice and its law-enforcement partners remain committed to aggressively pursuing individuals who exploit COVID-relief programs and to ensuring that these ill-gotten gains are returned.”

Sah admitted that, based on his false statements and fabricated documents, he received over $17 million in PPP loan funds and diverted the proceeds for his personal benefit, using them to purchase multiple homes in Texas, pay off the mortgages on other homes in California, and buy a fleet of luxury cars, including a Bentley convertible, Corvette Stingray, and Porsche Macan. Sah also sent millions of dollars in PPP proceeds in international money transfers. As part of his guilty plea, Sah will forfeit, among other property, eight homes, numerous luxury vehicles, and more than $7.2 million in fraudulent proceeds that the government seized to date. 

Sah pleaded guilty to one count of wire fraud and one count of money laundering in the Northern District of Texas. He will be sentenced at a later date and faces a maximum penalty of 30 years in federal prison.

The Dallas Field Offices of the FDIC-OIG, IRS-Criminal Investigation, and U.S. Treasury Inspector General for Tax Administration are investigating the case.

Assistant Deputy Chief Anna G. Kaminska of the Criminal Division’s Fraud Section and Section Chief Katherine Miller of the U.S. Attorney’s Office for the Northern District of Texas are prosecuting the case. Assistant U.S. Attorneys Erica Hilliard and Dimitri Rocha are handling the asset-forfeiture component of the case. 

The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.

The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1%. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal on the PPP loan to be forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses at least a certain percentage of the PPP loan proceeds on payroll expenses.

The Fraud Section leads the Department of Justice’s prosecution of fraud schemes that exploit the CARES Act. In the months since the CARES Act was passed, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases. The Fraud Section has also seized more than $65 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real-estate properties and luxury items purchased with such proceeds. More information can be found at: https://www.justice.gov/criminal-fraud/cares-act-fraud.

Anyone with general information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

The United States Attorney’s Office for the Northern District of Texas has filed a False Claims Act lawsuit against a Texas dermatopathologist and his clinic, Cockerell Dermatopathology (CDP), for submitting nearly $4.2 million in fraudulent claims to TRICARE, announced Acting U.S. Attorney Prerak Shah.

According to allegations in a civil complaint filed Monday, Dr. Clay Cockerell, 64, knowingly permitted a laboratory management company to use his clinic’s lab license to submit false claims to federal health insurance programs, including TRICARE, for medically unnecessary tests. 

The complaint alleges that in March 2015, Dr. Cockerell signed an agreement that authorized the management company, Progen, to use CDP’s CLIA lab license to submit claims for payment for toxicology and pharmacogenomic tests.  In return, Progen agreed to pay CDP twenty percent of the net revenue from those tests. 

In an attempt to avoid the reach of the federal Anti-Kickback Statue (AKS), Dr. Cockerell specified that CDP would not provide any testing services to beneficiaries of federal health insurance programs, such as TRICARE, Medicare, or Medicaid, or collect any federal revenue. 

According to the complaint, Dr. Cockerell quickly became aware that Progen was violating their agreement and submitting claims to federal healthcare programs. He also learned that Progen was engaged in gross mismanagement and abusive practices, and even received warnings that CDP was violating the False Claims Act. 

Meanwhile, Progen marketers were offering $50 Wal-Mart gift cards to induce TRICARE beneficiaries to provide urine and saliva for expensive, medically unnecessary testing. 

Despite these and other red flags, the complaint alleges that Dr. Cockerell continued to permit Progen, using CDP’s license, to submit fraudulent claims to TRICARE. 

The complaint also alleges that, after multiple patient complaints, CDP sent TRICARE a retraction letter in January 2016, admitting to receiving over $900,000 for improper claims.  Despite this, Dr. Cockerell continued to let Progen submit lab claims to TRICARE using his CLIA license. 

In June 2016, a CBS News story aired about the Wal-Mart gift card scheme.  Shortly thereafter, CDP sent another retraction letter to TRICARE and admitted receiving an additional $3.2 million for false claims.  While CDP stated that it would refund TRICARE for all of these erroneous claims, it never did.

In November 2016, as CDP was under federal investigation, Dr. Cockerell terminated his relationship with Progen.  CDP later filed an arbitration claim against Progen and its principals, seeking indemnification for the millions of dollars it allegedly intended to repay to TRICARE.  As described in the government’s complaint, Progen settled this litigation in March 2019 for $3.485 million.  In a memorandum explaining the purpose of the settlement payment, Dr. Cockerell and CDP represented that they would use the settlement proceeds to repay TRICARE.  But they never did.   

The government is now seeking to recover the millions in TRICARE payments that CDP previously admitted were improper, or, at a minimum, the $3.485 million that CDP and Dr. Cockerell agreed that they would pay to TRICARE.  The False Claims Act allows for treble damages and statutory civil penalties. 

The claims against Dr. Cockerell and CDP are merely allegations until they are proven in court. 

The Defense Criminal Investigative Service conducted the investigation.  Assistant U.S. Attorney Richard Guiltinan is handling the civil case, which is assigned to U.S. District Judge Jane J. Boyle.

The CEO of a local hospice agency has pleaded guilty to defrauding Medicare and Medicaid, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.

Bradley J. Harris, the 39-year-old former head of Novus and Optimum Health Services, pleaded guilty on Friday to conspiracy to commit healthcare fraud and healthcare fraud.

“Mr. Harris scammed federal healthcare programs out of millions of dollars, and worse yet, denied vulnerable patients the medical oversight they deserved, writing pain prescriptions without physician input and allowing terminally ill patients to go unexamined,” said Acting U.S. Attorney Prerak Shah. “The Justice Department cannot allow unscrupulous business people to interfere with the practice of medicine. We are determined to root out healthcare fraud.”

“In addition to causing fraudulent billing for tens of millions of dollars, Mr. Harris preyed upon patients and families that did not have a true understanding of Novus and hospice services. The core of the company was rooted in deception, and the lack of physician oversight allowed Mr. Harris to make medical decisions for his own financial benefit,” said FBI Dallas Special Agent in Charge Matthew DeSarno. “We will continue to work tirelessly with our state and federal partners to hold those who commit health care fraud accountable and seek justice for patients that are harmed in furtherance of fraud schemes.”

According to his plea papers, Mr. Harris admitted that from 2012 to 2016, he billed Medicare and Medicaid for hospice services that were not provided, that were not directed by a medical professional, or that were provided to patients who were not actually eligible for hospice care.  He further admitted that he used blank, pre-signed controlled substance prescriptions to doll out potent drugs without physician input.

Mr. Harris admitted that two of his coconspirators, Dr. Mark Gibbs and Dr. Laila Hirjee, frequently certified that that his hospice patients faced terminal illnesses without actually examining with the patients in person, as required by Medicare. (A “terminal” patient is one with a life expectancy of six months or less, according to the Department of Health & Human Services.) The doctors were paid around $150 for each false order they signed.

Mr. Harris also admitted that Dr. Gibbs, Dr. Hirjee, and another physician, Dr. Charles Leach, left him blank controlled substance prescriptions, sometimes a whole pad at a time. This allowed Mr. Harris, an accountant by trade, to “prescribe” schedule II controlled substances to hospice beneficiaries without the guidance of a medical professional.

In plea papers, Mr. Harris admitted that in summer 2014, he realized he could avoid exceeding Medicare’s aggregate hospice cap by enrolling an influx of first-time hospice patients. So, he negotiated an agreement with a company called Express Medical that allowed him to access potential patient’s confidential medical information in return for using Express Medical for laboratory services and home health visits. His wife and other Novus staff then called on individuals that had at some point been patients of Express Medical to recruit them for Novus hospice services, regardless of whether they were eligible to receive benefits.

When the Center for Medicare & Medicaid Services suspended Novus based upon credible allegations of fraud, Mr. Harris and simply transferred patients from Novus to a new company, “Company A.”  Dr. Gibbs became a medical director for the “new” hospice company, which used Novus staff and transferred hospice reimbursements back to Novus, Mr. Harris admitted.  

The defendant now faces up to 14 years in federal prison. His sentencing hearing has been set for Aug. 3 before Chief U.S. District Judge Barbara M.G. Lynn.

Ten of Mr. Harris’ codefendants, including Dr. Leach, have already pleaded guilty. Four more, including Dr. Gibbs and Dr. Hirjee, are slated for trial on April 5.

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.

SENTENCING – RENE RANGEL-MANJARREZ

On March 12, Rene Rangel-Manjarrez, 34, was sentenced to 13 months in federal prison for making a false statement during the purchase of a firearm. Rangel-Manjarrez was recruited and paid money by Jose Celby Hernadez to purchase firearms on behalf of Hernandez.  Rangel-Manjarrez traveled from Brownsville, TX to Pleasanton, TX to purchase firearms from a licensed dealer.  He stated on ATF Form 4473s that he was the actual buyer of the firearms, when in fact he was not.  He purchased the firearms on behalf of and for Hernandez.  The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation.  Assistant U.S. Attorney Phelesa Guy prosecuted the case.

GUILTY PLEA – ERIC GRZYWINSKI

On March 16, Eric Grzywinski, 49, plead guilty to attempted production of child pornography.  Law enforcement received a cybertip from the National Center for Missing and Exploited Children (NCMEC) concerning a suspicious social media user on Twitter that was posting images of child pornography to his social media page.  Grand Prairie Police obtained a search warrant for the individual’s account which was traced back to a local motel.  A hotel employee identified Grywinski to law enforcement as a hotel customer.  In August 2019, law enforcement arrested Grzywinski on child pornography charges. During a post arrest interview, he admitted to chatting with a minor from Alabama on a dating app.  Grzywinski admitted to exchanging lewd and lascivious images with her and posting images on Twitter that could be considered alarming.  Grywinski faces up to 50 years in federal prison for his crimes.  The FBI and the Garland Police Department conducted the investigation.  Assistant U.S. Attorney Camille Sparks is prosecuting this case.

GUILTY PLEA – MA EUGENIA CERVANTES PASTRANA

On March 18, Ma Eugenia Cervantes Pastrana, 38, plead guilty to conspiracy to possess with intent to distribute a controlled substance.  In March 2019, Pastrana agreed to transport a loaded vehicle for a drug trafficking organization.  Pastrana believed she was transporting bulk proceeds of drug trafficking that were concealed in the vehicle she was driving.  Law enforcement stopped Pastrana in Hunt County, Texas and located approximately 24 kilos of heroin in the vehicle.   She now faces up to 20 years in federal prison for her crimes.  The Texas Department of Public Safety conducted the investigation.  Assistant U.S. Attorney P.J. Meitl is prosecuting the case.

Fourteen defendants convicted in the Forest Park Medical Center bribery scam have been sentenced to a combined 74+ years in federal prison and ordered to pay a total of $82.9 million in restitution, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.

Seven defendants – Wilton McPherson “Mac” Burt, Jackson Jacob, Douglas Sung Won, Michael Bassem Rimlawi, Shawn Mark Henry, Mrugeshkumar Shah, and Iris Kathleen Forrest – were convicted at trial in April 2019, and were sentenced this week by U.S. District Judge Zack Zouhary.  Ten other defendants pleaded guilty prior to trial, and one, who was granted a mistrial, pleaded guilty after trial.

“Patient needs, not physician finances, should dictate where, when, and how patients are treated. Money should never be allowed to influence medical decisions,” said Acting U.S. Attorney Prerak Shah. “We believe the stiff sentences handed down this week send a strong deterrent message: Violate anti-kickback laws, and you will face consequences.” 

The $200 million scheme was designed to induce doctors to steer lucrative patients – particularly those with high-reimbursing, out-of-network private insurance – to the now defunct hospital.

Most of the kickbacks, which totaled more than $40 million, were disguised as consulting fees or “marketing money” doled as a percentage of surgeries each doctor referred to Forest Park. 

Instead of billing patients for out-of-network co-payments, instituted by insurers to de-incentivize the high costs associated with out-of-network treatment, Forest Park allegedly assured patients they would pay in-network prices. Because they knew insurers wouldn’t tolerate such practices, they concealed the patient discounts and wrote off the difference as uncollected “bad debt.”

Hospital manager Alan Andrew Beauchamp – who pleaded guilty in August 2018 to one count of conspiracy to pay healthcare bribes and one count of commercial bribery under the Travel Act, then testified for the government during his coconspirators’ trial – admitted that Forest Park “bought surgeries,” and then “papered it up to make it look good.” Mr. Beauchamp was sentenced Friday afternoon to 63 months in federal prison.

Other defendants were sentenced as follows:
 

• Wilton “Mac” Burt, Forest Park’s managing partner, was found guilty on 10 of 12 counts, including one count of conspiracy, two counts of paying kickbacks, six counts of commercial bribery in violation of the Travel Act, and one count of money laundering. He was sentenced Wednesday to 150 months in federal prison.
   
• Jackson Jacob, owner of the shell companies through which some of the bribes were routed, was found guilty on four of 14 counts, including conspiracy and three counts of paying kickbacks. He was sentenced Wednesday to 96 months in federal prison. 
   
• Dr. Douglas Won, a spinal surgeon, was found guilty on one of two counts, conspiracy. He was sentenced Thursday to 60 months in federal prison.
   
• Dr. Michael Rimlawi, a spinal surgeon who partnered with Won, was found guilty on three of four counts, including conspiracy and two counts of receiving kickbacks. He was sentenced Thursday to 90 months in federal prison.
   
• Dr. Shawn Henry, a spinal surgeon who invested in FMPC, was found guilty on three of three counts, including conspiracy, commercial bribery, and money laundering. He was sentenced Wednesday to 90 months in federal prison.
   
• Dr. Mrugeshkumar Shah, a pain management doctor, was found guilty on four of four counts, including conspiracy, two counts of paying kickbacks, and one count of commercial bribery. He was sentenced Thursday to 42 months in federal prison.
   
• Iris Forrest, a nurse who recruited and preauthorized worker’s comp requests, was convicted on two of two counts, including conspiracy and paying kickbacks. She was sentenced Wednesday to 36 months in federal prison.
   
• Israel Ortiz, the founder of Kortmed, a company that fills out preauthorization for worker’s comp patients, pleaded guilty in February 2017 to conspiracy to pay and receive healthcare kickbacks. He was sentenced Thursday to 12 months in federal prison.
   
• Dr. Wade Neal Barker, a bariatric surgeon who co-founded Forest Park in 2008, pleaded guilty in October 2018 to one count of conspiracy to pay health care bribes and one count of paying illegal remuneration in violation of the Travel Act. He was sentenced Thursday to 60 months in federal prison. 
   
• Andrew Jonathan Hillman, a co-owner of Hospital Business Concepts, a surgeon brokerage,  pleaded guilty in October 2018 to conspiracy to pay and receive healthcare bribes. He was sentenced in December 2019 to 60 months in federal prison.
   
• Dr. Frank Gonzalez, a chiropractor who referred patients to Forest Park in return for bribes, pleaded guilty in August 2018 to conspiracy to pay and receive healthcare kickbacks. He was sentenced Friday to 21 months in federal prison.
   
• Semyon Narosov, a co-owner of Hospital Business Concepts, pleaded guilty in October 2018 to conspiracy to pay and receive healthcare bribes. He was sentenced in July 2020 to 51 months in federal prison.
   
• Dr. Richard Toussaint Jr., an anesthesiologist who co-founded Forest Park in 2008, pleaded guilty in March 2017 to one count of conspiracy to pay health care bribes and one count of paying illegal remuneration in violation of the Travel Act. He was sentenced in August 2020 to 60 months in federal prison.
   
• Carli Adel Hempel, who pleaded guilty in July 2019 to conspiracy to misapply property of a health care benefit program, was sentenced in October 2020 to three years’ probation. 
   
• Kelly Wade Loter and Andrea Kay Smith, who both  pleaded guilty to misprision of a felony (failure to report a felony), were sentenced in January 2020 to three and five years’ probation, respectively.
   

The Forest Park prosecution is one of the first cases in the nation to use the federal Travel Act to prosecute healthcare fraud. 

In addition to the $82.9 million restitution, the government plans to collect more than $25.5 million in money judgments against those convicted in the Forest Park scheme.

The case was investigated by the Federal Bureau of Investigation, the U.S. Department of Labor Office of Inspector General, the U.S. Department of Labor Employee Benefits Security Administration, the U.S. Department of Defense - Defense Criminal Investigative Service, the U.S. Office of Personnel Management Office of Inspector General, and Internal Revenue Service Criminal Investigation, with assistance from the Food and Drug Administration and the U.S. Postal Inspection Service. Assistant U.S. Attorneys Andrew Wirmani, Kate Pfeifle (fmr), Marcus Busch, Mark Tindall (fmr), and Gail Hayworth prosecuted the case.

SENTENCING – LEONEL GENARO YANEZ

On March 5, Leonel Yanez, 47, was sentenced to 135 months in federal prison for possession with intent to distribute a methamphetamine. Yanez, an illegal immigrant from Morelia, Mexico, met an individual in Mesquite, Texas where he purchased car audio speakers which he knew contained 20 kilograms of methamphetamine. Yanez planned to distribute the narcotics to an individual who was taking the speakers to Florida. This DEA conducted the investigation.  Assistant U.S. Attorney Rachael Jones prosecuted the case.

SENTENCING – JOSE ALBERTO HINOJOSA

On March 10, Jose Alberto Hinojosa, 28, was sentenced to 40 months in federal prison for conspiracy to possess with intent to distribute methamphetamine.  In February 2019, Hinojosa was stopped by a Perry County, Mississippi sheriff’s deputy.  During a roadside investigation, Hinojosa admitted to law enforcement that he had been smoking methamphetamine.  A further search of his vehicle revealed approximately $29,000 in currency.  Hinojosa gave a statement to law enforcement that he had picked up five kilograms of methamphetamine from a friend in Dallas to transport to Tampa, Florida.  While in Tampa, he received further instructions regarding the delivery of the methamphetamine.  The DEA conducted the investigation.  Assistant U.S. Attorney Myria Boehm prosecuted the case.

GUILTY PLEA – TANIA DELAROSA

On March 11, Tania Delarosa, 42, plead guilty to bank robbery.  On March 27, 2020, Delarosa entered a Bank of America in Dallas.  She presented a note to the bank teller and stated she had a gun.  The note contained a threat that Delarosa would go to the teller’s house and kill her family.  Immediately, the teller notified other bank employees, who in turn contacted law enforcement. Delarosa subsequently fled the bank without any cash. Delarosa was identified based on the surveillance footage and arrested after she boarded a nearby bus.  She now faces up to 20 years in federal prison for her crimes.  The FBI and the Dallas Police Department conducted the investigation.  Assistant U.S. Attorney Rebekah Ricketts is prosecuting the case.

SENTENCING – CORNELIUS WALKER

On March 11, Cornelius Walker, 34, was sentenced to 25 years in federal prison for four counts of interference with commerce by robbery, and two counts of brandishing and discharging a firearm in furtherance of a crime of violence.  On January 9, 2018, Walker entered a Dallas convenience armed with a firearm.  He discharged a firearm in the direction of the convenience store employee causing the clerk to flee.  Walker jumped over the counter and took the register tray.  On January 10, Walker entered another Dallas convenience store wearing a white mask and black hoodie. Armed with a firearm, he jumped over the counter demanding cash from the convenience store employee.  Fearing for his life, the employee opened the register giving Walker cash. On January 11, Walker robbed a convenience store in Richardson. While demanding cash from the store clerk, Walker shot the employee twice in the chest before fleeing.  A few days later, Walker entered a Carrollton restaurant wearing a grey hoodie, grey socks on his hands, and a grey mask.  He pointed a firearm at the restaurant’s general manager.  Walker put the gun to another employees back while demanding cash from the restaurant.  In sum from the four robberies, Walker stole $387.24.  The FBI conducted the investigation. Assistant U.S. Attorney Shane Read prosecuted the case.

 

A U.S. citizen who formerly resided in the Dominican Republic has been sentenced to 20 years in federal prison for his role in a scheme to steal debit cards from bank customers, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.

Gregory Jean-Louis, a 46-year-old U.S. citizen living in the Dominican Republic at the time of his crime, was charged with fraud conspiracies in the Northern District of Texas and in the Southern District of Florida in 2019 and 2020, respectively.  The Florida case was transferred to the Northern District of Texas, and Mr. Jean-Louis pleaded guilty in both cases to charges of conspiracy to commit bank fraud and access to device fraud. He was sentenced today by U.S. District Judge Reed O’Connor to 240 months in federal prison and was ordered to pay more than $3.3 million in restitution to Bank of America and Citizens Bank. 

During the sentencing hearing, internal investigators from Bank of America and Citizen’s Bank testified about their years-long investigation into the fraud, which revealed that the defendant and his coconspirators had victimized hundreds of customers.

According to plea papers, Mr. Jean-Louis admitted that he and his coconspirators used stolen PII (personal identification information) to obtain debit cards in the names of customers of Bank of America and Citizens Bank.

Posing as actual customers of the financial institutions, Mr. Jean-Louis – also known to his coconspirators as “G.” –  reached out to the banks, requesting that they mail duplicate debit cards and PIN numbers to customers’ actual addresses.

He then directed coconspirator “runners” to steal the debit cards and PIN numbers from the customers’ mailboxes, and to send him photos of the cards and PINs so he could activate them. 

Using the fraudulently obtained cards, the group withdrew thousands of dollars from customers’ accounts from ATMs across the country, including in Texas, New York, Massachusetts, Rhode Island, Connecticut, California, and Pennsylvania.  Much of the money was wired to Mr. Jean-Louis.

The United States Postal Inspection Service conducted the investigation; the U.S. Marshals Service assisted in Mr. Jean-Louis’ apprehension. Assistant U.S. Attorney Rob Boudreau prosecuted the case.

A federal jury has convicted a Long Beach, California man of committing a spree of violent cell phone store robberies, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.

After around two hours of deliberations, a jury on Wednesday found 49-year-old Edward Eugene Robinson guilty 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.

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.

The evidence showed that during the robberies, Mr. Robinson and his accomplices would threaten store employees with guns and tasers and demand that they open the store safes where the phones and other equipment were stored. The robbers would then restrain the employees using zip-ties or cell phone chargers.

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

Mr. Robinson faces a minimum of 14 years and up to life in federal prison for his crimes. A sentencing date has been set for July 8.  He also faces additional charges in the Central District of California.

“Mr. Robinson and his coconspirators embarked on a multi-state spree of violent robberies, putting the lives of innocent civilians at risk,” said Acting U.S. Attorney Shah. “We are grateful to the prosecutors and law enforcement partners across Texas and California who worked tirelessly to bring this criminal actor to justice.”

“The FBI focuses its investigative resources on suspects who pose the greatest safety threats to the public, including violent serial offenders who cross jurisdictional boundaries,” said Dallas FBI Special Agent in Charge Matthew J. DeSarno. “In addition to stealing over $600,000 of merchandise, Mr. Robinson and his accomplices threatened dozens of employees who were in fear for their lives long after the robberies ended. The FBI’s Safe Streets Task Force and our partners will continue to seek justice for victims of violent crime.”

The other defendants in the case—Aaron Hardrick, 33, and Ncholeion Hollie, 30, 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 Safe Streets Task Force, Fort Worth Police Department, Hurst Police Department, and Bedford Police Department conducted the investigation.  Assistant U.S. Attorneys Matthew Weybrecht and Nancy Larson of the Northern District of Texas prosecuted the case. They received substantial assistance from Assistant U.S. Attorneys Jerry C. Yang and Peter H. Dahlquist of the Central District of California, who also prosecuted other California members of the robbery crew.

A man who brandished an assault rifle at a Black Lives Matter protest in Lubbock has been sentenced to 46 months in federal prison, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.

Emmanuel Quinones, a 25-year-old local, was charged via criminal complaint in early June and indicted a week later. He pleaded guilty to interstate threatening communications in September and was sentenced on Tuesday by U.S. District Judge James Wesley Hendrix.

“The Department of Justice stands firmly against anyone and everyone who seeks to instill terror and encourage violence,” said Acting U.S. Attorney Prerak Shah. “This sentence sends a clear message that our office will continue to work with our law enforcement partners to apprehend and charge all violent instigators, while protecting those who want to lawfully exercise their constitutional rights.”

“Together, our local, state, and federal partners work to protect those participating in legitimate, peaceful protests,” said FBI Dallas Special Agent in Charge Matthew J. DeSarno. “The intimidating and violent behavior exhibited by Mr. Quinones while individuals exercised their First Amendment rights has been swiftly answered with today’s sentence.”

According to plea papers, Mr. Quinones admitted he brought a loaded Smith & Wesson .223 caliber semi-automatic rifle to a protest decrying the death of George Floyd. He also admitted that, prior to the protest, he posted threatening messages online. For example, in a May 28 Facebook post, he intimated that he planned to obtain gun parts “to off racists and MAGA people.”

In view of the protesters, Mr. Quinones held the rifle at “low ready,” in firing position with the muzzle pointed toward the ground, as panic rippled through the assembled crowd. (Although Texas is an open-carry state, the Texas Penal Code makes it illegal to display a firearm in a public place “in a manner calculated to alarm.”) He refused a Lubbock Police officer’s verbal commands to drop the rifle, and only did so when the officer drew his gun and a protestor moved to tackle him. As he was taken into custody, Mr. Quinones allegedly shouted “this is a revolution” and “President Trump must die.”

The Federal Bureau of Investigation Dallas Field Office, Lubbock Resident Agency, the United States Secret Service, the United States Bureau of Alcohol, Tobacco, Firearms, & Explosives Dallas Field Division, and the Lubbock Police Department conducted the investigation. Assistant U.S. Attorney Jeff Haag is prosecuting the case.

 A Lubbock area bank robber was sentenced to 20 years in federal prison, the statutory maximum, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.

Eric Dion Warren, 50, plead guilty to bank robbery in August 2020 and was sentenced Tuesday by U.S. District Judge James Wesley Hendrix.

According to court documents, on June 7, 2019, at approximately 12:45 p.m., Mr. Warren entered AIM Bank in Wolfforth, Texas.  He approached one of the tellers and placed a paper fast food bag and a demand note on the counter which read: “This is a f------ robbery. Play with me and die. I want $10,000 in 50 and 100 dollar bills now you got 1 minute or I will kill you.”  Mr. Warren then pulled out what appeared to be a handgun and said, “I ain’t playing around, I only want 100s and 50s.”

The teller gave Mr. Warren money from her drawer including strapped twenty-dollar bills with recorded serial numbers.  After the teller placed the money in Mr. Warren’s bag, he said, “Don’t push any buttons” and then fled the scene with several thousand dollars currency.

Mr. Warren admitted to driving away in a vehicle that had been loaned to him by a car dealership, while the sale of a black BMW was being finalized.  Approximately 15 minutes after the robbery took place, Mr. Warren arrived in the loaned vehicle at the car dealership in Lubbock.  Mr. Warren began waving the cash that he had illegally obtained from the bank robbery at employees in the car dealership.  He entered the dealership’s finance office and attempted to finalize the purchase of the BMW by giving the dealership $3,000 cash as a down payment.

While Mr. Warren was in the dealership’s finance office, an employee received a phone call informing him of the recent bank robbery.  The employee realized that the vehicle used in the bank robbery matched the vehicle the dealership had loaned to Mr. Warren and he alerted law enforcement.

Mr. Warren was arrested with $5,086 in cash.  The serial numbers of the money found on Mr. Warren’s person were cross-referenced and matched the numbers of the bills stolen from AIM bank.  Law enforcement also recovered a painted pellet gun, resembling a real handgun, approximately 10 feet way from Mr. Warren at the time of his arrest.  The demand note given to the teller at the bank was analyzed and confirmed the existence of Mr. Warren’s fingerprints and DNA.

The FBI’s Lubbock Resident Agency conducted the investigation.  Assistant U.S. Attorney Stephen Rancourt prosecuted the case.

The United States Attorney’s Office for the Northern District of Texas announced today that 31 DFW-area children have been located, recovered, or rescued as a result of “Operation Missing in the Metroplex,” a month-long operation led by the U.S. Marshals Service and Homeland Security Investigations.

The federal agencies partnered with four local police departments – the Arlington Police Department, the Dallas Police Department, the Fort Worth Police Department, and the Grand Prairie Police Department – to locate the missing minors.

Analysts with the Texas Department of Public Safety’s Missing & Unidentified Persons Unit and the Texas Department of Family & Protective Services provided critical intelligence. Local nonprofit 4theONE provided 24-hour support and relayed numerous tips that culminated in recoveries.

“To observe law enforcement partnerships and community concerns culminate into such a successful recovery outcome is rewarding,” said Acting United States Marshal Quintella Downs-Bradshaw. “Victims should know they are not forgotten, there is hope and a way to return home.”

“While this joint operation lasted approximately 30 days, HSI Dallas will continue working relentlessly to identify and recover missing children who become vulnerable to human traffickers across the North Texas region,” said HSI Dallas Special Agent in Charge Ryan L. Spradlin. “Our continued collaboration with our local, state and federal law-enforcement partners and non-governmental organizations is vital to combatting this global epidemic.”

At least seven recoveries were of critically missing children with ties to sex trafficking. Noteworthy cases include: 

• A 15-year-old Jane Doe recovered by Dallas Police at a residence in Dallas following a tip by a confidential source.
• A 17-year-old Jane Doe recovered by Dallas Police inside a vehicle in Dallas.
• A 16-year-old Jane Doe recovered by Arlington Police inside a residence in Kerens, TX following an analysis of social media.
• A 13-year-old Jane Doe recovered by Fort Worth Police inside an apartment in Fort Worth. 
• A 15-year-old Jane Doe from Fort Worth recovered in an Uber in Houston during a prostitution sting. 
• A 16-year-old Jane Doe recovered by Fort Worth Police at a “john’s” house in Fort Worth. 
• A 16-year-old Jane Doe recovered by Dallas Police walking on Lancaster Blvd.

The remaining 24 children were recovered from friends or relatives, reunited with their legal guardians, and removed from the missing children database. 

“We are grateful to be a part of a coalition of extraordinary law enforcement agencies who were dedicated in reuniting these children with their loved ones. It is our hope that each of them will be able to put this traumatic experience behind them and move forward to have a happy and productive life,” said Dallas Police Department Chief of Police Eddie Garcia.

“We will continue to work with local, state, and federal partners to identify and rescue missing children,” said Arlington Chief of Police Al Jones. “These kids and teens represent some of our most vulnerable populations where adults try to prey on their innocence. We will not rest until every child is located safe and someone is held accountable.”

“It is imperative that we continue to work with our partners to protect the most vulnerable members of our community, our children.  We value our state and federal partnerships and were honored to be included as part of ‘Operation Missing in the Metroplex.’ We will continue to work closely with our law enforcement partnerships in locating missing children and reuniting them with their families. Human trafficking is a serious issue and we will not rest until our most vulnerable population are safe,” said Fort Worth Police Department Chief Neil Noakes.

The Justice Department records more than 420,000 reports of missing children each year. For decades, the U.S. Marshals Service, Homeland Security Investigations, and state and local authorities have worked relentlessly to recover children who have been abducted, enticed, lost, or run away.

If your child is missing, call local law enforcement immediately, and provide them with your child’s name, height, weight, any other descriptive identifiers (glasses, braces, etc), and the circumstances under which they went missing. Then, consider calling the National Center for Missing & Exploited Children at 1-800-THE-LOST (1-800-843-5678) for additional support.

 

A former Sweetwater business owner plead guilty today to engaging in a $12.3 million wire fraud scheme, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.

Stewart Kile Williams, 31, plead guilty to two counts of wire fraud and two counts of engaging in monetary transactions in property derived from unlawful activity.

According to court documents, Mr. Williams committed his crimes in the Northern District of Texas after engaging in another fraud scheme in the Southern District of Texas where he pleaded guilty to four counts of wire fraud.  Mr. Williams was sentenced to serve 70 months in federal prison and ordered him to pay $2,071,925 in restitution for his crimes in the Southern District of Texas.

While on pretrial release in the Southern District of Texas, Mr. Williams formed AZS Trenching, an unregistered sole proprietorship.  The company provided freight and trenching services in the West Texas Permian Basin.

In January 2019, Mr. Williams and Navarone Capital, LLC, a privately held business in Midland, Texas, entered into an agreement under which AZS Trenching sold its accounts receivable to Navarone in a process called “factoring.”  This allowed Mr. Williams to receive cash up front from Navarone for a portion of the value of services listed on his invoices.  Under the agreement, Navarone confirmed the invoices with the respective companies for which AZS Trenching was performing work and then paid Mr. Williams for the invoices.

In March 2019, Mr. Williams sought an additional factoring agreement for work AZS Trenching was purportedly performing for HIS Pipeline Company.  Navarone performed due diligence and required assurances from HIS Pipeline.  Mr. Williams completely fabricated a relationship with HIS and created bogus invoices for work AZS Trenching did not perform, and never planned to perform, for HIS. 

Mr. Williams admitted to fabricating invoices and assuming the identity of an HIS employee.  To further his scheme, Mr. Williams acquired a cell telephone with a Louisiana area code where HIS is based.  He also acquired an email address under the assumed name.  Mr. Williams then communicated with Navarone via telephone and email under the guise of the HIS employee.  During each communication, he assured Navarone that AZS Trenching was performing the work on the fabricated invoices.  Mr. Williams used the fraudulent pretenses to encourage Navarone to front money for the bogus invoices.

In sum, Mr. Williams created 38 fictitious invoices totaling more than $12.3 million.  Using the criminally derived funds, Mr. Williams purchased a number of items, including farm equipment and a new home.

Mr. Williams faces up to 60 years in federal prison for crimes committed in the Northern District of Texas.

Internal Revenue Service-Criminal Investigations, United States Postal Inspection Services, and the Federal Bureau of Investigation conducted the investigation.  Assistant U.S. Attorney Ann Howey is prosecuting the case.

Two members of an international organized network that provided cash-out and money laundering services to cyber actors were extradited from the Czech Republic to Dallas.

Viktor Vorontsov, 39, and Zlata Hanska Muzhuk, 40, were charged in a one-count indictment with conspiracy to launder funds filed in February 2020 in the Northern District of Texas. 

According to the indictment, Muzhuk and Vorontsov were allegedly members of an international organized network providing cash-out and money laundering services to cyber actors who used stolen bank login credentials to initiate fraudulent electronic funds transfers from victims’ bank accounts to bank accounts (drop accounts) created and controlled by the cash-out actors. For a fee, Muzhuk and Vorontsov provided a network of drop accounts and money mules to receive, transfer, and conceal money derived from the fraudulent online transfers of funds. The indictment alleges the conspiracy existed for the entirety of 2017 and focused on seven electronic funds transfers in October and November 2017, totaling almost $500,000.

During the FBI’s investigation of Muzhuk and Vorontsov, the Czech National Organized Crime Agency (NCOZ) collaborated to gather information and evidence. In late January 2020, NCOZ informed the FBI that Muzhuk was visiting Vorontsov at his residence in the Czech Republic. A criminal complaint and an arrest warrant were issued by a U.S. Magistrate Judge in Dallas and an FBI special agent from Dallas traveled to the Czech Republic to coordinate with the NCOZ.

In an unprecedentedly prompt response on Feb. 6, 2020, the NCOZ effected the arrests of Muzhuk and Vorontsov at the request of the U.S. and seized valuable evidence from both defendants and from Vorontsov’s residence. Muzhuk and Vorontsov were detained pending the extradition proceedings. On Dec. 4, 2020, and Jan. 21, 2021, respectively, the Ministry of Justice of the Czech Republic granted the extradition of Muzhuk and Vorontsov. The defendants were transferred to FBI custody on March 3, 2021 and were flown from Prague to Dallas.

Vorontsov and Muzhuk appeared before U.S. Magistrate Judge Toliver in the Northern District of Texas and entered not-guilty pleas to the charges. Vorontsov and Muzhuk remain in the custody of the U.S. Marshals Service.

The FBI’s Dallas Field Office conducted the investigation. The Justice Department’s Office of International Affairs provided substantial assistance in securing the defendants’ extradition from the Czech Republic.

Senior Trial Attorney C.S. Heath of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Robert Nichols of the Northern District of Texas are prosecuting the case. 

An indictment is merely an accusation. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

SENTENCING – GERSON GAMALIEL ROJO GUZMAN

On February 26, Gerson Gamaliel Rojo Guzman, 31, was sentenced to 7 years for possession with the intent to distribute a controlled substance. Law enforcement executed a search warrant at Rojo Guzman’s residence. Officers recovered cocaine, two firearms, ammunition, and $11,550 in cash.  This case was investigated by the Texas Department of Public Safety. Assistant U.S. Attorney P.J. Meitl is prosecuting the case.

SENTENCING – JOSE CELBEY HERNANDEZ

On March 1, Jose Celbey Hernandez, 30, was sentenced to 41 months in federal prison for conspiracy to smuggle goods from the United States.  Hernandez and a coconspirator worked together to purchase firearms from individuals and licensed dealers for the purpose of exporting them to individuals in Mexico.  They traveled to several locations in Texas to purchase firearms.  Hernandez provided money to the coconspirator to illegally purchase firearms before turning them over to him.  This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.  Assistant U.S. Attorney Phelesa Guy prosecuted the case.

GUILTY PLEA – DEZIREE LUJAN

On March 2, Deziree Lujan, 29, plead guilty to tampering with a witness or victim.  In August 2020, Lujan used social media in an attempt to hinder and prevent a victim’s testimony against a sex trafficking defendant. In one such attempt, Lujan revealed the identity of the victim on social media and threatened the victim with physical violence.  During this same timeframe, Lujan was reaching out privately to known pimps on social media and revealing the victim’s identity and further threatening physical harm due to her involvement in a federal prosecution.  This case was investigated by Homeland Security Investigations.  Assistant U.S. Attorney Melanie Smith is prosecuting the case.

A North Dallas tax return preparer was sentenced to 3½ years in prison and ordered to pay $11.9 million in restitution for filing fraudulent income tax returns, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.

Alma Jean Gilbert, 54, pleaded guilty to aiding and assisting in the preparation of a materially false tax return in October 2019. She was sentenced Friday by U.S. District Judge Barbara M.G. Lynn.

According to plea papers, since 2011, Ms. Gilbert has owned and operated In Touch Tax Solutions in Dallas. In 2016, she opened an additional office in Mesquite and hired employees to prepare and file tax returns on behalf of clients there.

Between 2012 and 2017, Mrs. Gilbert knowingly prepared and caused to be filed hundreds of fraudulent tax returns for clients.

The fraudulent returns contained materially false credits and deductions – including false education credits, fuel tax credits, and business losses – for the purpose of increasing the refunds to the clients.

IRS Criminal Investigation conducted the investigation. Assistant U.S. Attorney David Jarvis prosecuted the case.

SENTENCING – ILDERALDO DEANDRE LIMA-MOSLEY

On February 22, Ilderaldo Deandre Lima-Mosley, 32, was sentenced to 2 years in federal prison for felon in possession of a firearm. In May 2020, Lima-Mosley, a previously convicted felon, met an individual at a Dallas area tobacco shop to sell a .380 pistol and several magazines containing ammunition for $740. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Phelesa Guy prosecuted this case.

GUILTY PLEA – SALVADOR GALLEGO

On February 25, Salvador Gallego, 29, plead guilty to possession with the intent to distribute a controlled substance.  In June, Gallegos sold one kilogram of methamphetamine to another person for $7,000.  Five days later, law enforcement executed a search warrant at a location used by Gallegos to process methamphetamine.  Agents seized multiple kilograms of methamphetamine, $279,491 in drug proceeds, a firearm, and a drug ledger.  Gallego faces up to 40 years in federal prison for his crimes.  This case was investigated by the Drug Enforcement Administration. Assistant U.S. Attorney John Kull is prosecuting the case.

SENTENCING – ALMA JEAN GILBERT

On February 26, Alma Jean Gilbert, 52, was sentenced to 42 months in federal prison and ordered to pay $11,991,265 restitution for aiding and assisting in the preparation of a fraudulent tax return.  Gilbert owned a tax preparation business, where she hired employees to prepare taxes and obtained Electronic Filer Identification Numbers from the Internal Revenue Service. Between 2012 and 2017, Gilbert knowingly prepared and caused to be filed hundreds of fraudulent tax returns for clients. The fraudulent tax returns contained materially false credits and deductions for the purpose of increasing the refunds to the clients. Some of the false items include education credits, fuel tax credits, and business losses.  This case was investigated by the Internal Revenue Service – Criminal Investigations.  Assistant U.S. Attorney David Jarvis prosecuted the case.

Two men pleaded guilty this week to illegally excavating approximately 1,500 artifacts from federal land, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.

Jeffrey Alan Vance, 37, of San Marcos, and Dax Wheatley, 32, of Amarillo, pleaded guilty this week to violating the Archeological Resource Protection Act (ARPA).

“Looting from federal lands will always trigger swift enforcement action,” said Acting U.S. Attorney Prerak Shah.  “The Justice Department will not stand for the theft of precious cultural artifacts.  We are working aggressively to safeguard our nation’s Native American heritage and root out those who violate the law.”

“The federal law enforcement officers of the Bureau of Land Management and our state archaeologists work tirelessly to protect our nation’s natural and cultural resources,” said Eric A. Kriley Director of the BLM’s Office of Law Enforcement and Security.  “I hope the sentences in this case will deter others from illegally collecting and trading in Native American cultural artifacts and other items protected by the Archeological Resources Protection Act of 1979 and the Native American Graves Protection and Repatriation Act. I want to thank the United States Attorney’s Office for their outstanding cooperation and commitment in the prosecution of this case.”

In March 2019, the Bureau of Land Management (BLM) received a tip that an illegal excavation had occurred on a Native American cultural site at the Cross Bar Management Area, just north of Amarillo, Texas.  BLM determined that the illegal excavation took place at 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.

A BLM agent received information that a person, later identified as Mr. Vance, had posted photographs of the illegal excavation on social media.  While commenting on the photo, a Facebook user informed Mr. Vance that the area he was “digging in is federal land and Rangers enforce” there. Mr. Vance replied, “I’m not scared of the feds.”

Mr. Wheatley also posted photographs of illegal excavations that he and Mr. Vance conducted at a U.S. Army Corps of Engineers site in Austin, Texas.  Mr. Vance posted more information on social media about other dig sites in the Austin, Texas area and the San Marcos, Texas area.

According to plea papers, a search warrant was executed at the homes of both Mr. Vance and Mr. Wheatley in November 2019.  Mr. Vance admitted that there were human remains inside his residence and Mr. Wheatly had a photograph of the excavation site 41PT109 taped to his refrigerator.

Law enforcement sized Mr. Vance’s cell phone and conducted a forensic analysis. He had several discussions with people about selling the illegally obtained Native American artifacts and remains. In one text message, Mr. Vance stated, “Don’t be telling people we are digging on government property!” Vance also bragged that he is an “infamous illegal excavator of Native American artifacts in Texas” and that he is “a criminal.”

In total, approximately 1,500 artifacts were recovered by federal authorities including burial beads and petrified wood.  BLM will consult with the appropriate tribes to determine cultural affiliation and to facilitate repatriation of the remains and artifacts.

Each defendant faces up to 2 years in federal prison and restitution for their crimes.

The Bureau of Land Management, FBI Evidence Recovery Team, National Parks Service, Texas Parks and Wildlife, U.S. Army Corps of Engineers, and Homeland Security Investigations conducted the investigation.  Assistant U.S. Attorney Anna Marie Bell is prosecuting the case.

The wife of a Dallas man allegedly gunned down by her paramour has been charged with obstruction of justice, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.

Jennifer Lynne Faith, 48, was arrested at her residence in Oak Cliff on Wednesday, charged via criminal complaint with one count of destruction of an object with the intent to obstruct a federal investigation. The complaint was unsealed on Thursday. Ms. Faith will make her initial appearance before U.S. Magistrate Judge Renee Toliver on Friday.

“Even as she publicly claimed she was ‘desperate for answers’ regarding her husband’s murder, Jennifer Faith was communicating with the alleged killer, actively urging him to destroy evidence and attempting to delete incriminating communications from her phone,” said U.S. Attorney Prerak Shah. “Thanks to the dedication of our agents and officers, Ms. Faith could not keep law enforcement from identifying her husband’s killer. Even so, we cannot allow her obstruction of justice to stand. We are determined to hold her accountable for her crime.”

“Sometimes things just aren’t what they seem. Special Agents and Detectives knew Mrs. Faith was hiding something and were able to expose her darkest secrets. She was indeed entangled with the man we believe to have murdered her husband,” stated ATF Special Agent in Charge of the Dallas Field Division Jeffrey C. Boshek II. “Her cowardly attempts to utilize the media to conceal her involvement did not hamper relentless investigators. She will now face the consequences for her misdeeds.”

“I am pleased to see that there were no stones left unturned during the course of this investigation, and that our collaborative efforts have brought those involved to justice,” said Dallas Police Department Chief Eddie Garcia. “I am also excited to continue this partnership with the USDOJ in our ongoing determination to remove the criminal elements off the streets.”

According to the complaint, a search of Ms. Faith’s phone revealed she was having what she described as “a full-blown emotional affair” with Darrin Ruben Lopez, the 48-year-old Tennessee man who allegedly murdered Ms. Faith’s husband, James Faith, on Oct. 9, 2020.

Investigators determined that Mr. Lopez drove from his home in Tennessee on Oct. 9 to the Faiths’ home in Dallas, where he allegedly laid in wait until the couple left to walk their dog, then shot Mr. Faith seven times before fleeing the scene.

Ballistic tests proved that a .45 caliber handgun found inside Mr. Lopez’s home on Jan. 11, 2021 was the weapon used to kill Mr. Faith.  Law enforcement agents also learned that Mr. Lopez owned a Nissan Titan pickup that matched witnesses’ description of the shooter’s vehicle. In November, law enforcement agents in Tennessee observed a distinctive “T” decal on the truck’s back window, which matched witness’ descriptions of a “T” sticker on the rear window of the shooter’s truck.

In an interview with law enforcement in January, Ms. Faith allegedly admitted that she communicated daily with Mr. Lopez via cell phone, but denied an intimate relationship.

An analysis of Mr. Lopez’s cell phone, seized after his arrest on Jan. 11, revealed that Ms. Faith and Mr. Lopez were intimately involved. Ms. Faith used her cell phone to update Mr. Lopez on her efforts to collect on Mr. Faith’s life insurance policy and to coach Mr. Lopez on how to respond to potential police questioning.

Text messages revealed that even as she publicly projected the grieving widow persona on TV, privately, Ms. Faith instructed Mr. Lopez to remove the distinctive “T” decal off of his truck – the same decal that witnesses had reported to law enforcement on the day of the murder.

“So I woke up in a little bit of a panic… something is eating away at me telling me you need to take the sticker out of the back window of the truck,” she texted Mr. Lopez on Dec. 3.  

“I don’t want to just take it off all at once the girls would notice that,” he responded thirty minutes later. “But I have been working on it.”

“I have a bad feeling and I really think you need to get that sticker off ASAP….like today,” Ms. Faith texted the following day. 

“Sticker done,” Mr. Lopez responded on Dec. 6, confirming he had removed the “T” sticker from his truck as Ms. Faith had instructed. 

“Oh YAY!!! Thank you!!” Ms. Faith replied. “I feel SOOOOOO much better.”

Law enforcement agents conducting surveillance in Tennessee noted that the “T” sticker had been removed from Lopez’s vehicle when they observed the truck on Dec. 8.

Then, on Jan. 10,  a day before Ms. Faith was scheduled to be interviewed by police, Ms. Faith texted Mr. Lopez and told him she planned to wipe down the contents on her cell phone prior to meeting with investigators.

“Don’t text me Monday. I am going to factory reset my phone on Sunday night after deleting texts,” Ms. Faith texted.

“If asked about you, you are an old friend going through a divorce. We talk every night because I am helping/giving support with the girls since you have sole custody. If it ever comes to it, I’ll answer the same way. Just so you and I have the same explanations. Just thinking in case they [law enforcement] pulled phone records and asked,” she added.  

After meeting with Ms. Faith on Jan. 11, investigators searched her cell phone and determined she had deleted most of the text messages from her phone, including her texts with Mr. Lopez.

Despite the factory reset of Ms. Faith’s cell phone, investigators were able to recover the deleted text messages off of Mr. Lopez’s cell phone.

Mr. Lopez has been charged by the state with murder and by the feds with transporting a firearm in interstate commerce.

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

If convicted, Ms. Faith faces up to 20 years in federal prison on the obstruction count. Mr. Lopez faces up to 10 years in federal prison on the federal firearm count and up to life in a state penitentiary on the murder charge brought by Dallas County.

The Bureau of Alcohol, Tobacco, Firearms & Explosives’ Dallas Field Division and the Dallas Police Department’s Homicide Unit conducted the investigation with the assistance of the ATF’s Nashville Field Office, the Federal Bureau of Investigation’s Dallas Field Office, Homeland Security Investigations, the Tennessee Bureau of Investigation’s Aviation Unit, and the U.S. Attorney’s Office for the Middle District of Tennessee. NDTX Assistant U.S. Attorney Rick Calvert is prosecuting the case.

A Fort Worth osteopath who attempted to incinerate clinic records has been sentenced to 10 years in federal prison for his role in a $10 million healthcare fraud, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.

Mark Kuper, the 43-year-old owner of the Texas Center for Orthopedic and Spinal Disorders (TCOSD), was indicted in June 2020. Three months later, he pleaded guilty to one count of conspiracy to commit healthcare fraud. He was sentenced Thursday by U.S. District Judge Reed C. O’Connor.

According to plea papers, Mr. Kuper admitted he conspired with his wife, Melissa Kuper, and a TCOSD physical therapist, Travis Couey, to defraud Medicare, Medicaid, and TRICARE.

The defendant admitted he fraudulently billed insurers for services the clinic never actually rendered, including physical therapy and psychotherapy, and required patients to attend these bogus appointments in order to receive Schedule II controlled substance prescriptions.

He also admitted that he gave his wife access to the secure device and passcode he used to sign controlled substance prescriptions, allowing her to improperly dispense pain medications on her own initiative, without his input.

In plea papers, Mr. Kuper acknowledged that he submitted claims stating that TCOSD had developed individualized physical therapy plans of care for each patient, knowing full well that the clinic had simply issued a boilerplate template, and for one-on-one physical therapy, even though the patients were actually meeting in groups with an athletic trainer who was not qualified to perform physical therapy.

Mr. Kuper further admitted that although he billed insurers for professional 60-minute psychotherapy sessions, most patients actually spoke with unqualified professionals for just 15 to 20 minutes – often when Mr. Kuper was out of the office.  

On multiple occasions, Mr. Kuper billed as though he’d provided more than 100 hours’ work in a single 24-hour day. From 2014 to 2017, he submitted more than $10 million in claims to Medicaid, Medicare, and TRICARE.

As the scheme unraveled, Ms. Kuper attempted to destroy TCOSD documents in an outdoor fireplace at their home. The blaze destroyed their residence, but firefighters were able to recover some of the charred records from the outdoor fireplace.

Mr. Kuper also tried to cover up evidence of the fraud by accessing hundreds of electronic patient records and altering the purported treatment notes to make them appear more comprehensive.

Both Ms. Kuper and Mr. Couey pleaded guilty in September 2020 to conspiracy to commit healthcare fraud. They were sentenced to 18 months and 36 months, respectively.

A civil investigation into TCOSD began after whistleblower Richard Brown filed a qui tam suit alleging that Dr. Kuper was committing fraud through his clinic. 

On May 29, 2020, the Civil Division of the U.S. Attorney’s office filed a complaint in partial intervention against Dr. Kuper, Mr. Couey, and Dr. Kuper’s clinic.  The Government’s False Claims Act complaint alleged that Dr. Kuper submitted fraudulent claims for physical therapy, psychotherapy, and pain injection services to federal healthcare programs. 

In addition to his guilty plea, Dr. Kuper and his clinic agreed to settle the False Claims Act lawsuit by entry of an agreed judgment against Dr. Kuper and his clinic in the amount of $11,190,222.  As part of the settlement, Dr. Kuper also agreed to liquidate his real estate portfolio and other assets to satisfy the civil judgment.  The whistleblower, Richard Brown, will receive 17% of the government’s recovery.  

The Health and Human Services Office of Inspector General, the Defense Criminal Investigative Service, and the Texas Medicaid Fraud Control Unit, a division of the Texas Attorney General’s Office, conducted the investigation, with assistance from the Drug Enforcement Administration’s Dallas Field Division.  Assistant U.S. Attorneys Lindsey Beran and Steve Fahey, NDTX Criminal Chief, prosecuted the criminal case. Assistant U.S. Attorneys Richard Guiltinan and Kimberly McCoy handled the False Claims Act case for the United States.

A health care executive was sentenced to 37 months in federal prison and ordered to pay more than $3.4 million in restitution for defrauding the IRS, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.

Donald O’Connor Ramsey, 72, pleaded guilty to failure to pay over withholding and FICA taxes in February 2020.  Mr. Ramsey was sentenced yesterday afternoon before U.S. District Judge Sam A. Lindsay.

“Individuals and businesses that willfully fail to pay their tax obligations harm all Americans,” said Acting U.S. Attorney Shah. “The Department of Justice is committed to aggressively prosecuting those individuals who seek to circumvent U.S. tax laws.”

“I’m proud of our agent’s hard work in this investigation.  This defendant ‘knowingly and willingly’ took money from his employees and failed to remit these payroll taxes to the government” said Acting Special Agent in Charge Mark Pearson, Dallas Field Office. “Mr. Ramsey’s punishment reflects the consequence of not paying taxes in a truthful and timely manner and the importance of the continued partnership between the U.S. Attorney’s Office for the Northern District of Texas and the IRS Criminal Investigation in the pursuit of these criminals.”

According to court documents, Mr. Ramsey, owner and chief financial officer of Community Care Medical (CCM) and Medical Case Management & Social Services (MCM), failed to pay employment taxes to the IRS from 2013 to 2018.

Mr. Ramsey directed CCM and MCM to withhold taxes from its employee’s paychecks, including income, Medicare, and Social Security taxes.

Both companies were required to make deposits of the payroll taxes to the IRS on a periodic basis.  In addition, CCM and MCM were required to file an Employer’s Quarterly Federal Income Tax Return (From 941) which includes the total amount of wages and other compensation subject to withholding, the total amount of income tax withheld, the total amount of Social Security and Medicare taxes due, and the total tax deposits.

From 2013 to 2018, Mr. Ramsey failed to regularly file quarterly returns with the IRS, while continuing to withhold his employees’ salaries.

Mr. Ramsey conduct resulted in a tax loss of approximately $1.9 million to the IRS.

IRS Criminal Investigation conducted the investigation.  Assistant U.S. Attorney Nicholas Bunch prosecuted the case.

A Honduran man who conned investors out of roughly $2 million has been sentenced to five years in federal prison, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.

Jose Anibal Linares, 42, pleaded guilty to one count of mail fraud in October 2020. He was sentenced today to 60 months in federal prison by U.S. District Judge David C. Godbey, who also ordered him to pay more than $2.3 million in restitution. A Honduran citizen in the U.S. formerly on Temporary Protected Status, Mr. Linares may be subject to removal from the U.S. after serving his sentence.

According to plea papers, Mr. Linares admitted to running a Ponzi-type scheme, luring investors into handing over “principal” that he later deposited in bank accounts at Wells Fargo, Bank of America, and Legacy Texas, then paying them “interest” from other investors’ principal payments.

Mr. Linares, who operated JC Loans Finance and Inversiones JC Dallas, admitted he falsely told investors their funds were “insured by the FDIC” and promised monthly returns based on investments in commercial and residential real estate, including a water resort and shopping centers in Honduras. He then mailed investors letters thanking them for joining the JC “family.”

Instead of investing their money, however, Mr. Linares admits he spent substantial amounts of investor funds on personal expenditures, and even wired some of the money to family members in Honduras.

In the meantime, he made lulling payments to investors by withdrawing large sums from his Bank of America and Wells Fargo accounts, generally using funds that had been deposited immediately beforehand from other investors. On some occasions, he even took investors’ cash payments from one set of investors in his office, then turned the cash over to other investors waiting in his lobby for their monthly disbursements.

By summer 2017, Mr. Linares admits, he had ceased all monthly payments and did not return investors’ principal investments.

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

The U.S. Attorney’s Office for the Northern District of Texas is on alert for fraudsters seeking to profit off of the extreme weather in Texas, warned Acting U.S. Attorney Prerak Shah.

Burst pipes, flooding, and other property damage stemming from this week’s storm may prompt unscrupulous actors to reach out to consumers with bogus insurance or home warranty information or nonexistent government grants, the U.S. Attorney’s Office said.

“Time and time again, we’ve seen scammers exploit natural disasters for personal gain,” said Acting U.S. Attorney Shah. “The last thing beleaguered Texans need right now is to fall prey to fraud. If something sounds too good to be true, it probably is. We urge consumers to exercise caution, especially when it comes to unsolicited calls, texts, or emails.”

Millions of people fall victims to scams every year. If you think you may have been preyed upon, please contact local law enforcement or submit a report to the Justice Department’s National Center for Disaster Fraud at 866-720-5721 or www.justice.gov/disastercomplaintform.

For more information on common phone and phishing scam tactics, visit the Federal Trade Commission’s website.

SENTENCING – ALEXANDER CAMPBELL

On February 18, Alexander Campbell, 30, was sentenced to 188 months in federal prison for conspiracy to possess with intent to distribute a controlled substance.  In September, a co-conspirator contacted Campbell to setup a purchase of methamphetamine for a buyer.  Campbell arrived a hotel in Fort Worth and provided an undercover officer with a large, clear zip-lock bag containing methamphetamine in exchange for $2,550.  This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.  Assistant U.S. Attorney Levi Thomas prosecuted the case.

GUILTY PLEA – JERRY WAYNE GILLENTINE

On February 18, Jerry Wayne Gillentine, Jr., 35, pleaded guilty to possession of child pornography.   An undercover detective downloaded images of child pornography from a peer-to-peer program that identified Gillentine’s IP address.  Based on the download, a search warrant was executed for Gillentine’s residence in Granbury, Texas.  Gillentine stated that he was the main user of a laptop that was seized by law enforcement.  A forensic examination of Gillentine’s laptop located an image depicting child pornography.  Gillentine faces up to 10 years in federal prison for his crimes.  This case was investigated by the FBI.  Assistant U.S. Attorney Brandie Wade is prosecuting the case.

SENTENCING – JUAN JOSE ROMAN-JUAREZ

On February 12, Juan Jose Roman-Juarez, 27, was sentenced to 4 years in federal prison for illegal entry after removal from the United States. On February 16, 2019, Roman-Juarez was in the Northern District of Texas after previously removed in 2018.  Roman-Juarez admits that he is not a United States citizen and was not given consent to be in the United States.  This case was investigated by the Department of Homeland Security Immigration Customs Enforcement.  Assistant U.S. Attorney Dimitri Rocha prosecuted the case.

SENTENCING – FERNANDO ANTONIO GONZALEZ RODRIGUEZ

On February 10, Fernando Antonio Gonzalez Rodriguez, 36, was sentenced to 1 year in federal prison for transporting illegal aliens.  In August 2019, a Hunt County sheriff’s deputy stopped a vehicle with a California license plate for suspended registration.  Rodriguez was the driver and there were seven passengers.  During the traffic stop, Rodriguez admitted that he had picked the passengers up at a hotel in Houston and was transporting them to Chicago, as part of a larger alien smuggling organization that operates in Texas and California. Rodriguez states that this was his third trip transporting illegal aliens and that he was paid $400 for the trip.  This case was investigated by HSI.  Assistant U.S. Attorney Melanie Smith is prosecuting the case.