Northern District of Texas

GUILTY PLEA – DANIEL SANCHEZ-MENDOZA

On January 21, Daniel Sanchez-Mendoza, 27, pled guilty to possession with the intent to distribute methamphetamine. Sanchez-Mendoza was pulled over by law enforcement for a traffic violation, and after consenting to a search, was found to be in possession of methamphetamine and heroin. In a later warranted search of Sanchez-Mendoza’s home, law enforcement found heroin, methamphetamine, cocaine, and three firearms within the apartment. Another firearm and part of an assault rifle were found in a storage unit used by Sanchez-Mendoza. He faces up to 20 years in federal custody. This case was investigated by the Drug Enforcement Administration and the Dallas Police Department and is prosecuted by AUSA Linda Requenez.

SENTENCING – KHAKI CAEKAERT

On January 14, Khaki Caekaert, 63, was sentenced to 9 years in federal custody for possession with the intent to distribute methamphetamine. Caekaert was found to be in possession of a kilogram of methamphetamine and 1.5 kilograms of heroin in his store located on Fuller Drive in Dallas. He also possessed 13 firearms and 3 explosive devices at this location. Law enforcement estimated that Caekaert had sold an ounce of methamphetamine each week for the two years prior to his arrest. This case was investigated by the Federal Bureau of Investigation and prosecuted by AUSA PJ Meitl.

GUILTY PLEA – KARA LAMPKIN

On January 21, Kara Lampkin, 36, pled guilty to conspiracy to use a facility of interstate commerce in aid of a racketeering enterprise. Lampkin managed Relax2013, a brothel, at the direction of Jason Vo. She posted online advertisements to recruit sex workers, scheduled appointments, vetted both customers and workers to ensure they were not law enforcement, and managed the profits of this business. She ensured that both the advertisements and the business records were disguised and vague enough to avoid detection by law enforcement. Lampkin faces up to 5 years in federal custody. This case was investigated by the Texas Department of Public Safety and the Federal Bureau of Investigation and is prosecuted by AUSA Ryan Raybould.

SENTENCING – ZACHERY SEMAJ LEATCH        

On January 23, Zachery Semaj Leatch, 25, was sentenced to 2 years and 3 months for being a felon in possession of a firearm and possession of a firearm in a school zone. Leatch was found to be in possession of a pistol while at a youth basketball game. When police arrived on the scene, Leatch’s girlfriend warned him and Leatch set the gun on the floor before walking to the police officers. He admitted to possessing the firearm on a recorded jail call. This case was investigated by the Mesquite Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by AUSA John Boyle.

SENTENCING – ROBERT GUERRA IV

On January 23, Robert Guerra IV, 36, was sentenced to 15 years in federal custody for attempted production of child pornography. An undercover officer entered several chat rooms on Kik Messenger, posing as a 13 year old boy and later a 14 year old girl. Guerra attempted to solicit graphic content from the undercover detective. Guerra set plans to meet with the fake girl in person, however Garland Police officers and FBI agents were waiting to arrest him at the location. This case was investigated by the Grand Prairie Police Department, the Garland Police Department, and the Federal Bureau of Investigation and prosecuted by AUSA Camille Sparks.

SENTENCING – JAMES EARLE CUDE

On January 23, James Earle Cude, 55, was sentenced to 14 years in federal custody for receipt of child pornography. Cude, a former band director at North Mesquite High School, admitted to using the instant messaging app Kik to download videos and images of the sexual exploitation of minors. He used various apps to initiate chats with dozens of minors, requesting inappropriate photos and suggesting sexual meetups. He was arrested while waiting for a meetup with an individual he believed was a 13-year-old boy, who was actually an undercover agent. This case was investigated by the Collin County Sheriff’s Office, Dallas Police Department, and Homeland Security Investigations and prosecuted by AUSA Camille Sparks. Click here to read more about this case.

GUILTY PLEA – EDWARD TORRES-SANCHEZ

On January 21, Edward Torres-Sanchez, 20, pled guilty to possession with the intent to distribute methamphetamine. Torres-Sanchez was observed leaving his apartment with an unidentified white bag. Later, upon pulling Torres-Sanchez over for a traffic violation, Dallas Police Department officers found that he was driving without a license or insurance. Torres-Sanchez was lawfully arrested, and the ensuing search of his car resulted in the discovery of methamphetamine. Torres-Sanchez is also responsible for methamphetamine and drug proceeds found in his vehicle, as well as selling methamphetamine to an undercover officer. He faces up to life in federal custody. This case was investigated by the North Texas Strike Force and prosecuted by AUSA John Kull.

A North Texas construction company will pay the government $3 million for its role in a scheme to illegally employ undocumented immigrants, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox. 

Five individuals have already pleaded guilty in connection with the crime. 

In a non-prosecution agreement with the U.S. Attorney’s Office (available below), Texas-based builder Speed Fab Crete admitted it illegally employed undocumented immigrants not authorized to work in the United States, and agreed to forfeit $3 million to the U.S. Treasury for use in promoting law enforcement activities related to immigration enforcement. 

Per the agreement – which requires Speed Fab Crete to cooperate with the government to ensure it will not violate immigration laws in future – the company pledged to continue to use E-Verify, the federal government’s web-based employment eligibility verification system; to comply with new internal verification procedures; to conduct company-wide training on immigration compliance; and to discipline those who attempt to employ unauthorized workers. 

The company’s three owners, Carl Eugene Hall, Ronald Alan Hamm, and David Leon Bloxom, are jointly and severally liable for the full amount if Speed Fab Crete does not fulfill its financial obligations under the non-prosecution agreement. 

Earlier this month, Mr. Hall pleaded guilty to conspiracy to unlawfully harbor illegal aliens, a felony. Mark Sevier, owner of Take Charge Staffing, a temp agency used by Speed Fab Crete, also pleaded guilty to conspiracy to unlawfully harbor illegal aliens. Mr. Hamm, Mr. Bloxom, and Robert Edwin James, the company’s Chief Financial Officer, pleaded guilty to unlawful employment of illegal aliens, a misdemeanor offense.

“An inspection revealed these defendants knowingly hired dozens of unauthorized workers, in flagrant disregard of U.S. law. Worse yet, rather than working with ICE to resolve their violations, they attempted to deceive the government,” said U.S. Attorney Nealy Cox. “We will not allow employers to flout our laws.”

“All three of Speed Fab Crete’s officials pleaded guilty to federal charges, in connection to them knowingly hiring unauthorized workers, and attempting to deceive the government,” said Ryan L. Spradlin, special agent in charge of HSI Dallas. “And now they are paying the price for their criminal conduct. It’s criminal investigations like these, that not only exemplify HSI’s mission to protect the integrity of the U.S. immigration system, but also serve as a warning to business owners willing to hire an illegitimate workforce. You can not only expect a hefty fine but a prison sentence as well.”   

According to their plea papers and Speed Fab Crete’s factual statement, the defendants admitted that they attempted to disguise the employment of unauthorized workers at Speed Fab Crete by placing them on the payroll of Take Charge Staffing, then lied to the government, stating that the unauthorized workers had been terminated from employment at Speed Fab Crete.

Per plea papers, after an I-9 inspection of Speed Fab Crete’s employment records revealed that 43 of the company’s 106 employees were undocumented immigrants not authorized to work in the United States, Speed Fab Crete entered into a settlement with Immigration & Customs Enforcement, pledging to rectify the situation.

HSI agreed not to conduct any subsequent I-9 inspection for a period of six months, giving Speed Fab Crete the time and opportunity to rectify the situation by employing legal workers.

In furtherance of that effort, in February 2016, the owners of Speed Fab Crete met with Take Charge Staffing to discuss replenishing their workforce.  At the initial meeting, Mr. Hall asked Mr. Sevier to simply transfer the unauthorized workers from Speed Fab Crete’s payroll system onto Take Charge Staffing’s payroll, and have them assigned to Speed Fab.  At the time, Mr. Sevier refused, promising to supply legal workers instead.

Over the ensuing six months, Mr. Sevier and Take Charge struggled to find employees to replace Speed Fab Crete’s unauthorized workers.  In September 2016, Mr. Sevier agreed to Mr. Hall’s plan. 

On Friday, September 23, 2016, Speed Fab Crete simultaneously terminated 39 unauthorized workers and sent 23 of them straight to Take Charge Staffing, where they were hired and assigned to Speed Fab Crete.  All 23 retuned to work at Speed Fab Crete the following Monday.  

From September 2016 until August 2017, Take Charge Staffing sent invoices for the unauthorized workers to Speed Fab Crete—all of which were authorized by Mr. Hall.  

On October 11, 2016, Speed Fab Crete followed up with Immigration & Customs Enforcement, sending a letter that stated all 39 of the unauthorized workers had been released and were “no longer working at Speed Fab Crete Corporation.”  Each of the individuals and the company admitted that this was a false and misleading statement to the government.

Mr. Hall and Mr. Sevier are facing up to five years in federal prison.  Mr. Bloxom, Mr. Hamm, and Mr. James are facing up to six months in federal prison. As part of the plea agreements, each individual will be also required to pay a $69,000 fine, equal to $3,000 per alien, the statutory maximum.

Homeland Security Investigations conducted the investigation.  Special Assistant U.S. Attorney Cathy Richardson and Assistant U.S. Attorney Nick Bunch are prosecuting the case.

As tax filing season opens this week, the IRS Criminal Investigation Dallas Field Office and the U.S. Attorney’s Office for the Northern District of Texas remind citizens that falsely preparing tax returns and evading taxes are crimes.

 

Tax payers can view the most current tax tips, forms and scams at www.irs.gov.

 

“As a new tax filing season begins this week, IRS Criminal Investigation wants to remind people to file accurate tax returns and to choose their tax preparers carefully,” said Tamera Cantu, Special Agent in Charge of the Dallas Field Office. “Those who might consider preparing false and fraudulent tax returns should be aware of the extremely negative consequences that could result in prison time and large tax bills, including substantial fines, interest and penalties.” 

 

“The U.S. Attorney’s Office is committed to prosecuting tax crimes,” said U.S. Attorney Erin Nealy Cox. “We are grateful to our partners at IRS Criminal Investigation for rooting out tax fraud.”

 

To underscore federal law enforcement’s commitment to pursue those who fail to pay their taxes or otherwise defraud the tax system, below are several tax and tax-related fraud prosecutions that were sentenced in 2019 in the Northern District of Texas:

 

• Juana Gabriela Ortiz worked for Ebenezer Olayiwola, who owned and operated Peak Insurance and Tax Service. Between 2010 and 2013, Olayiwola and his preparers filed thousands of tax returns claiming more than $35 million in fraudulent tax refunds.  Olayiwola admitted to training his preparers to prepare fraudulent tax returns by adding fraudulent Schedules C forms and education credits.  Olayiwola’s organization generated approximately millions of dollars in tax preparation fees during that period.  Olayiwola was sentenced to 60 months confinement, 3 years supervised release and restitution totaling $30,670,438.98.  Ortiz prepared a significant number of false tax returns, and was ordered to pay restitution totaling $3,992,080.

 

• Francisco Ventura owned numerous tax preparation businesses located in Texas. Subject assisted in teaching training classes for new tax return preparers, supervised other tax return preparers, and reviewed and submitted returns prepared at the business to the IRS. Ventura instructed employees to prepare false income tax returns utilizing false items such as Schedules C and false education credits. Ventura was sentenced to 63 months confinement, 2 years of supervised release and restitution totaling $8,310,261.

 

• Idrissa Traore and Josseline Cazun-Menendez participated in a stolen identity refund fraud scheme to defraud the IRS. Cazun-Menendez opened at least 66 bank accounts using false identification documents in at least 18 different alias names and Traore opened at least 3 bank accounts in at least 2 alias names also using false identification. Traore maintained organized files of his and Cazun-Menendez’s alias bank account records, debit cards, and fraudulent identification cards. A total of 159 fraudulent tax returns for tax years 2014 through 2017 were associated with fraudulent refunds deposited to the alias accounts. Traore was sentenced to 121 months confinement, 3 years of supervised release and restitution totaling $2,044,547. Cazun-Menendez was sentenced to 60 months confinement, 3 years of supervised release and restitution totaling $1,017,999.

 

• Mario Antonio Melendez worked for a return preparer who owned numerous tax preparation businesses in the Dallas area. The defendant conspired with the owner to teach return preparation classes instructing employees to prepare fraudulent returns in exchange for a percentage of the owner’s profits. The returns included false education credits and false American Opportunity Tax Credits and resulted in inflated refunds to be paid by the IRS. Melendez was sentenced to 51 months confinement, 1 year of supervised release and restitution totaling $3,885,456.

 

• Sandra Cantu owned two tax preparation businesses in Dallas and prepared, filed, and caused to be filed income tax returns containing false Schedules A and C. During the period of 2013-2016, her scheme resulted in 1,705 fraudulent returns, 626 of which refunds were paid out. Cantu was sentenced to 48 months confinement, 1 year of supervised release and restitution totaling $1,761,189.12.

 

The Better Business Bureau is a non-profit that upholds standards for trustworthiness and ethics in business. BBB accepts consumer complaints against businesses and monitors the marketplace for substandard business practices.

 

In 2019, BBB processed approximately 1,582 reportable complaints against tax return preparers. Approximately 65 of those complaints were for preparers headquartered in the DFW area.

 

Consumers alleged to BBB that theft of refunds, theft of personal information and identifiers, loss or misappropriation of sensitive data, and late and inaccurate filings are the possible outcomes of choosing the wrong tax preparer.

 

BBB advises taxpayers to be cautious when choosing a tax preparer. You can check BBB Business Profiles at www.bbb.org. BBB provides the following tips to help you find a tax preparer you can trust:

 

• Get referrals.

 

• Choose a preparer that is properly registered. A tax preparer must obtain a PTIN from the IRS.

 

• Look for credentials. Anyone with a PTIN can prepare your tax forms for you, but some tax preparers have more training and qualifications than others. Learn about tax preparer credentials on the IRS website.

 

• Keep a watchful eye for promises. Be wary of any tax preparation service that promises larger refunds than the competition and avoid tax preparers who base their fee on a percentage of the refund.

 

• Search for free tax programs. There are several free government programs that prepare taxes free of charge if you meet an income requirement. Visit the IRS’s Free File page for more information.

 

Timely and accurate filing, in addition to thorough research on a reputable tax preparer will help north Texans navigate the new tax season with ease and confidence.

A Mesquite educator was sentenced today to 14 years in federal prison for child exploitation, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.

55-year-old James Earle Cude – who previously served as North Mesquite High School’s band director – pleaded guilty in August to receipt of child pornography.

In plea papers, he admitted he’d used the instant messaging app Kik to download images and videos of the sexual exploitation of minors, including a video of a young boy being raped by an adult man.  

At his sentencing hearing, agents testified that Mr. Cude had used various apps to initiate chats with dozens of underage teens, requesting lewd photos and proposing sexual meetups.

Mr. Cude was arrested in February at a coffee shop, after exchanging explicit messages with an individual he believed was a 13-year-old boy. Unbeknownst to the defendant, his messages were actually sent to an undercover agent. He later admitted he’d enticed the boy there for sexual contact.

The Collin County Sheriff’s Office, Dallas Police Department, and Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Camille Sparks prosecuted the case. U.S. District Judge Samuel A. Lindsay handed down the sentence.  

CORRECTION: An earlier version of this release contained an error regarding the defendant's tenure at North Mesquite High School:. While Mr. Cude served as a band director in North Texas for more than a decade, he served at North Mesquite High School for less than a year, from 2018 to 2019.  Reporters were promptly notified of the error. 

GUILTY PLEA – RAMON MENDOZA-VILLEGAS

On January 16, Ramon Mendoza-Villegas, 44, pled guilty to possession with the intent to distribute a controlled substance, aiding and abetting. When Dallas Police Officers conducted a traffic stop on a vehicle in which Mendoza was a passenger, they found methamphetamine and heroin. While executing a search warrant on Mendoza’s home, law enforcement found heroin, methamphetamine, cocaine and three firearms within the apartment. In a similar search of a storage unit used by Mendoza, officers found methamphetamine, heroin, a shotgun, and the upper receiver of an assault rifle. Mendoza faces up to 20 years in federal custody. This case was investigated by the Drug Enforcement Administration and the Dallas Police Department and prosecuted by AUSA Linda Requenez.

GUILTY PLEA – ISIDRO AMAYA

On January 15, Isidro Amaya, 22, was sentenced to 7 years and 6 months in federal custody for possession with the intent to distribute methamphetamine and possession of a firearm by a convicted felon. A law enforcement officer stopped the car that Amaya was driving. When the officers conducted a Terry search, they located a firearm and two plastic baggies containing methamphetamine. Amaya admitted that the methamphetamine was for distribution and not personal consumption. He faces up to 8 years and 9 months in federal custody. This case was investigated by the Bureau of Alcohol, Firearms, Tobacco, and Explosives, and the Irving Police Department and was prosecuted by AUSA Danielle Jones.

SENTENCING – MICHAEL WRIGHT AND RICKEY CHERRY

On January 15, Michael Wright, 29, and Rickey Cherry, 29, were sentenced to 36 years and 25 years, respectively, in federal custody.  They were sentenced on multiple counts of interference with commerce by robbery and brandishing a firearm during and in relation to a crime of violence. Wright was involved in an armed robbery of an AT&T retail store in Ennis, where he stole $30,000 of inventory. He was arrested after a dangerous, high-speed pursuit, but posted bond the following day. Only twenty days later, Wright and Cherry robbed a RadioShack at gunpoint, and then another AT&T store in a similar fashion. This case was investigated by the Federal Bureau of Investigation, the Ennis Police Department, the Duncanville Police Department, the Grand Prairie Police Department, and the Dallas Police Department and prosecuted by AUSA Keith Robinson, AUSA Brian McKay, and AUSA Gary Tromblay. Click here to read more about this case.

A federal grand jury has indicted San Angelo’s former Chief of Police for public corruption following an investigation by the FBI Dallas Field Office, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.

Timothy Ray Vasquez, 49, was charged Wednesday with one count of receipt of a bribe by an agent of an organization receiving federal funds and three counts of honest services mail fraud.

“We must insist that law enforcement leaders personify integrity,” said U.S. Attorney Nealy Cox. “Former Chief Vasquez abused his office for personal financial gain. We are determined to root out corruption wherever we find it. Public officials cannot be allowed to violate their sacred trusts.”

“The defendant manipulated a government procurement process to personally profit for years. This abuse of power affected a system that is supposed to be fair and unbiased,” said FBI Special Agent in Charge of the Dallas Field Office Matthew J. DeSarno. “Public corruption is one of the FBI’s top investigative priorities. We will continue to hold elected officials accountable for violating the trust of their constituents.”

Mr. Vasquez – who was elected Chief of Police in 2004, then reelected in 2008 and 2012 – made his initial appearance in federal court Friday afternoon.

According to the indictment, Mr. Vasquez allegedly used his official position to help a radio system vendor land two government contracts worth more than $11 million. In return, the vendor and its affiliates allegedly funneled him and his band, “Funky Munky,” more than $130,000.

Per the indictment, in February 2007, the City of San Angelo solicited bids for a new radio system for first responders, including the police department. Three vendors submitted bids.

Mr. Vasquez allegedly asked one of the vendors for a vacation trip, but was rebuffed.

In April, Mr. Vasquez recommended the city award the $5.6 million contract to a different vendor, identified in the indictment as “Vendor 1,” who was eventually selected for the contract.

Three months later, in July, Juniper Valley, L.P., an affiliate of Vendor 1, cut a $10,000 check to “Funky Munky Band.” Mr. Vasquez deposited the funds into his personal checking account.  

For the next eight years, Mr. Vasquez received yearly payments of approximately $8,000 from Vendor 1 and its affiliates, Juniper Valley and Trixie & Fini, either made out to Mr. Vasquez or his band.

By 2015, Mr. Vasquez and Funky Money had collected more than $84,000, including $38,200 the defendant deposited directly into his personal bank account and $29,800 he withdrew in cash.

However, seven years after the original contract was awarded, the radio technology provided by Vendor 1 was “phased out.”  In an email with city employees, Mr. Vasquez indicated he wanted to “use the same vendor” for the new equipment, and urged the City Manager to support Vendor 1. In another email with a city employee, he discussed an exemption from the competitive bidding process that would allow San Angelo to award the contract to Vendor 1.

Following a presentation made by then-Chief Vasquez and another employee, San Angelo awarded a new $5.7 million contract to Vendor 1 in June 2015.  

Six months later, Vendor 1 wrote a check to “Funky Munky,” noting “Timothy R. Vasquez” in the check’s memo section. A few days later, Mr. Vasquez endorsed the $50,000 check and deposited the entire amount into his personal bank account.

In total, Mr. Vasquez and Funky Munky received at least $134,000 from Vendor 1 and its affiliates, including at least $88,200 he deposited into his personal bank account and $29,800 he withdrew in cash.

Funky Munky’s typical fee to play at an event runs from $1,000 - $3,000.

An indictment is a formal accusation of criminal conduct, not evidence, and the defendant is presumed innocent until proven guilty in a court of law.

If convicted, Mr. Vasquez faces up to 70 years in federal person.

The Federal Bureau of Investigation and the Texas Rangers, with the full cooperation of the San Angelo Police Department and the City of San Angelo, conducted the investigation.  Assistant U.S. Attorneys Jeff Haag and Chad Meacham are prosecuting the case.

Two men convicted of committing violent robberies at cell phone stores across North Texas have been sentenced to a combined 61 years in federal prison following an investigation by the FBI”s Dallas Field Office, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.

Following a six-day trial in April 2018, a jury convicted Michael Wright, 29, of Dallas, of three counts of interference with commerce by robbery, three counts of possessing or brandishing a firearm during and in relation to a crime of violence, and unlawful possession if a firearm by a convicted felon. U.S. District Judge Ed Kinkeade on Wednesday sentenced Mr. Wright to 36 years’ imprisonment.

The jury convicted Rickey Cherry, 29, also of Dallas, of two counts of interference with commerce by robbery and two counts of brandishing a firearm during and in relation to a crime of violence. Judge Kinkeade sentenced Mr. Cherry to 25 years’ imprisonment.

A coconspirator, Kameron Robinson, 27, previously pleaded guilty to one count of interference with commerce by robbery and one count of brandishing a firearm during and in relation to a crime of violence. He was sentenced in August 2018 to 12 years’ imprisonment.

According to facts presented at Wright and Cherry’s trial, on Jan. 2, 2015, Mr. Wright and Mr. Robinson – masked and armed with a .45 caliber pistol – robbed an AT&T retail store at gunpoint in Ennis, Texas.  They stole approximately $30,000 of inventory, including cell phones and tablets. 

They were apprehended by Ennis Police Department after leading police on a dangerous, high-speed pursuit, driving on the wrong side of the highway and over rain-slick rural roads.

Mr. Wright posted bond the following day. Just twenty days later, on Jan. 22, he and Mr. Cherry – masked and armed with a pistol – robbed a RadioShack at gunpoint in Duncanville, Texas. They viciously pistol-whipped the store manager before making off with approximately $28,000 in inventory, including cell phones.

Two weeks later, Mr.  Wright and Mr. Cherry – once again masked and armed – robbed an AT&T retailer at gunpoint in Grand Prairie, Texas. They stole approximately $32,000 in inventory, including cell phones and tablets. 

DNA evidence presented at trial linked them to the robberies.

The Federal Bureau of Investigation, the Ennis Police Department, the Duncanville Police Department, the Grand Prairie Police Department, and the Dallas Police Department conducted the investigation. Assistant U.S. Attorneys Keith Robinson, Brian McKay, and Gary Tromblay prosecuted the case.   

SENTENCING – SU Y AMOS MUN

On December 23, Su Y Amos Mun, was sentenced to 20 years in federal custody for maintaining a drug involved premises. Mun admitted to being the owner and manager of the HanGil Hotel Town between January 2018 and March 2019. He knowingly made rooms available for guests to be used for storing and distributing various illegal substances. He continued this practice, despite being informed of multiple heroin overdose deaths in his establishment. To read more about the HanGil Hotel case, click here. This case was investigated by the Drug Enforcement Administration, the Dallas Police Department, and the Coppell Police Department, and prosecuted by AUSA Rick Calvert.

GUILTY PLEA – SOPHIA LIAO AND BOONCHAI DUMRONGSRI

On December 31, Sophia Liao, 62, and her husband, Boonchai Dumrongsri, 55, pled guilty to conspiracy to distribute methamphetamine. Both defendants face up to 20 years in federal custody. Liao sold a total of 86.2 grams of methamphetamine to an undercover officer on six occasions between June 2013 and February 2016. Dumrongsri also sold methamphetamine to an undercover officer. This case was investigated by the Drug Enforcement Administration and the Garland Police Department and is prosecuted by AUSA Phelesa Guy.

SENTENCING – JOSE GUADALUPE HERNANDEZ-SALDIVAR

On December 19, Jose Guadalupe Hernandez-Saldivar, 26, was sentenced to 17 years and 6 months in federal custody for conspiracy to distribute heroin. An undercover officer negotiated the purchase of multiple kilograms of heroin with the leaders of a drug trafficking organization in Mexico. The officer was put in contact with Hernandez-Saldivar who coordinated a meeting at a Fiesta Mart in Dallas to conduct the drug deal. Later, Hernandez-Saldivar was confronted by law enforcement about the delivery and admitted to directing the exchange and possessing more heroin in his Dallas residence. This case was investigated by the North Texas Strike Force and prosecuted by AUSA John Kull.

SENTENCING – CHARLES EDWARD GRANT

On December 18, Charles Edward Grant, 24, was sentenced to 3 years and 4 months for bank robbery. Grant entered a Bank of America and walked over to one of the tellers, presenting a note demanding money. The note stated, “It’s a robbery. No Police. No Tracking. No Ink… I have a gun.” The teller forfeited the money, fearing for his life. This case was investigated by the Dallas Police Department and the Federal Bureau of Investigation and prosecuted by AUSA Walt Junker.

SENTENCING – RALPH JAY ADAMS

On December 19, Ralph Jay Adams, 40, was sentenced to 30 years in federal prison for possession with intent to distribute methamphetamine. Adams sold 13.37 grams of methamphetamine to another individual, at least 5 grams of which was “actual methamphetamine.” He also admitted that this methamphetamine was imported into the United States from Mexico. This case was investigated by the Texas Department of Public Safety and the Dallas Police Department and prosecuted by AUSA PJ Meitl.

A woman who videotaped as she forced a 9-year-old girl to perform sex acts on her husband has been sentenced to 30 years in federal prison, the statutory maximum sentence, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.

Dawn Greenwood, 39, pleaded guilty in October to production of child pornography.

According to plea papers, Ms. Greenwood used a cell phone to videotape her husband, Shon Greenwood, and the 9-year-old child, who’d been living at the couple’s home.

The case came to light when Facebook notified the National Center for Missing and Exploited Children that Mr. Greenwood had posted sexually explicit images of minors on his account.  

Following searches at both their Boone County, Missouri and Balch Springs, Texas residences, agents seized the Greenwoods’ phones, and found copies of the video on both devices.

The minor victim was immediately removed from the home and is being cared for by a guardian.

Mr. Greenwood pleaded guilty in December and is set to be sentenced in March.

The Boone County Sheriff’s Office, Dallas Police Department, Texas Department of Public Safety, and Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Camille Sparks is prosecuting the case. U.S. District Judge David Godbey handed down the sentence.

A firearms trafficker who stole guns from a Lubbock pawn shop was sentenced to 2.5 years in federal prison following an investigation by the ATF Lubbock Field Office, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.

Zachary Nicholas Gonzales, 21, pleaded guilty in September to theft of firearms from a federal firearms licensee.

In his plea papers, Mr. Gonzales admitted that in the early morning hours of July 4, 2019, he burglarized a Cash America Pawn shop on 50th Street, escaping with at least 14 stolen guns.  

He breached the cage where guns were stored by propping a ladder next to the cage and removing several ceiling tiles in order to jump over the mesh, he said.

Surveillance video from an attempted burglary at anther Cash America location the evening of July 4 showed Mr. Gonzalez there as well.

Following his arrest on July 9, Mr. Gonzales was Mirandized and admitted to ATF agents that he intended to sell the stolen firearms to support his drug habit.

“Firearms traffickers are a menace to our communities, often allowing dangerous individuals to get their hands on deadly weapons,” said U.S. Attorney Nealy Cox. “We’re proud to work with ATF and our state and local partners to prosecute this case under Project Guardian, the Attorney General’s gun violence reduction initiative.”  

“Mr. Gonzales garnered funds to support his drug habit by victimizing a Federal Firearms Licensee and fueling the illicit firearms trade,” stated ATF Special Agent in Charge Jeffrey C. Boshek II. “At least one of the stolen firearms was subsequently used in a violent crime.” 

The Bureau of Alcohol, Tobacco, Firearms & Explosives, the Lubbock Police Department, the Lubbock County Sheriff’s Office, and the Texas Department Public Safety conducted the investigation. Assistant U.S. Attorney Stephen Rancourt prosecuted the case. U.S. District Judge James Wesley Hendrix handed down the sentence.

This case was brought under Project Guardian, a Department of Justice initiative aimed at reducing gun violence by enforcing federal firearm laws through coordination between the federal government and state and local law enforcement.

A Dallas healthcare executive was sentenced Thursday afternoon to 66 months in federal prison for his role in two healthcare fraud schemes, Forest Park Medical Center and Nexthealth, and was ordered to pay $3 million in restitution, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.

Andrew Hillman, 43, pleaded guilty in October 2018 to conspiracy to pay and receive healthcare bribes and kickbacks – violations of the anti-kickback statute and the Travel Act – in the Forest Park scheme.

In plea papers, Mr. Hillman admitted he and his business partner, Seymon Narosov, were paid $190,000 by Forest Park to refer patients to the facility or to surgeons with privileges there. The payments, he admitted, were funneled through a shell entity, Adelaide Business Solutions, and Hillman and Narosov submitted phony invoices to conceal the wrongdoing.

The same day, Mr. Hillman also pleaded guilty to conspiracy to commit money laundering in the NextHealth scheme. 

He admitted that he and others conspired to launder the proceeds of various healthcare fraud offenses related to their pharmacies, resulting in $450 million in fraudulent billings to government and private insurance programs.  Among other fraudulent activities, the pharmacies paid illegal kickbacks to doctors and others to generate prescriptions, self-funded patient copays to dupe auditors, and misbranded drugs.

In April, Mr. Hillman testified about his criminal activity in the Forest Park Medical Center trial, which ended in guilty verdicts for seven of his coconspirators. In total, 18 defendants have been convicted in connection with the Forest Park matter.

Two defendants have been convicted in the Nexthealth scheme.

The cases were investigated by the U.S. Office of Personnel Management Office of Inspector General, the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation, the U.S. Department of Labor Office of Inspector General, the U.S. Department of Defense - Defense Criminal Investigative Service, and the U.S. Postal Service Office of Inspector General, with assistance from the Food and Drug Administration Office of Criminal Investigations. Assistant U.S. Attorneys Andrew Wirmani, Marcus Busch, and Chad Meacham prosecuted. 

SENTENCING – NELSON PABON

On December 6, Nelson Pabon, 48, was sentenced to 16 years and 8 months in federal custody for conspiracy to possess with intent to distribute methamphetamine. Pabon had informed undercover officers that because of his advance knowledge of canine sweeps of luggage, he was well-positioned to sneak drugs onto commercial flights for cash. Pabon is the lead defendant of 10 coconspirators in this case. If you would like to read more about this case, please click here. This case was investigated by the Federal Bureau of Investigation’s Dallas Field Office, the Dallas Police Department, and the Internal Revenue Service Criminal Investigation Division. This case is prosecuted by AUSA George Leal, John de la Garza, and John Kull.

 

GUILTY PLEA – DARYL HENRY

On December 12, Daryl Henry, 24, pled guilty to a hate crime act, conspiracy to commit hate crimes, kidnapping, and carjacking. Henry faces up to life in federal custody for his crimes. Henry admitted Grindr, a social media dating platform primarily used by gay men, was used to lure gay men to a vacant apartment, where they were beaten, taunted, and held against their will. This case was investigated by the Federal Bureau of Investigation, and the Dallas Police Department and is prosecuted by AUSA Nicole Dana. Click here to read more about this case.

 

GUILTY PLEA – RICARDO MONTES-GARCIA

On December 10, Ricardo Montes-Garcia, 53, pled guilty to possession with the intent to distribute methamphetamine. Montes-Garcia was spotted by police officers as he was leaving his residence and entering his vehicle with a black rectangular object and a white plastic bag. When officers observed a traffic violation, Montes-Garcia gave consent for a search. Officers found the rectangular object to contain 1,972 grams of methamphetamine. In a later search of his home, officers found 8,885 grams of methamphetamine, $36,833 in drug proceeds, and a methamphetamine conversion laboratory. He faces up to 20 years in federal custody. This case was investigated by the Drug Enforcement Adminstration and prosecuted by AUSA John Kull.

 

SENTENCING – JONATHAN ALEXANDER BAIRES

On December 12, Jonathan Alexander Baires, 20, was sentenced to 10 years in federal custody for attempted murder in aid of racketeering. Baires, a member of the MS-13 gang and the Irving Loco Salvatruchas clique, attempted to murder a man who Baires and his coconspirators assumed were a member of the rival 18th Street gang. The victim was ambushed by the gang members in a park, along with three other victims. Fortunately, the fatal attack was unsuccessful. This case was investigated by Homeland Security Investigations, Immigration and Customs Enforcement, the Irving Police Department, and the Dallas Police Department and prosecuted by AUSA Gary Tromblay.  

 

SENTENCING – JOSE ARMANDO SARAVIA-ROMERO

On December 12, Jose Armando Saravia-Romero, 20, was sentenced to 4 years and 9 months in federal custody for assault with a dangerous weapon in aid of racketeering. Saravia-Romero, a member of the MS-13 gang and the Irving Loco Salvatruchas, attacked and robbed a victim at a gas station. Saravia-Romero and his associates offered the victim cocaine and beer, and when the victim refused to pay, they attacked him with a metal bat and stole his wallet. This case was investigated by Homeland Security Investigations, Immigration and Customs Enforcement, the Irving Police Department, and the Dallas Police Department and prosecuted by AUSA Gary Tromblay.

A Zambian national who operated a scheme to steal U.S. taxpayer identities and fraudulently claim their refunds was sentenced to 97 months in federal prison, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.

Innocent Wangwamba, 36, of Zambia, was sentenced by District Judge Sam A. Lindsay on December 13 after an extensive investigation led by IRS Criminal Investigations Dallas Field Office. The defendant pleaded guilty in July to theft of public money and aiding and abetting in Mansfield, Texas.

In his plea papers, he admitted that from February 2012 to March 2014, he participated in a stolen identity refund fraud scheme involving falsely claimed tax refunds from the Department of the Treasury.  His participation in the scheme involved obtaining Electronic Filing Identification Numbers from IRS in stolen identities, obtaining and sharing personal identifying information of victims, setting up fraudulent accounts with third party providers such as Drake and Refund Advantage to file tax returns and obtain refunds, directing falsely claimed returns to particular bank accounts. 

Through this scheme, the co-conspirators submitted more than 7,400 fraudulent tax returns in the names of U.S. taxpayers using stolen personal identifying information.  The schemers attempted to obtain US $36,000,000 from the U.S. Treasury, but IRS was able to prevent more than US $29,000,000 of the attempted fraud.  Still, the co-conspirators stole approximately $6,000,000 from the U.S. Treasury.  Most of the defendant’s participation occurred while he was outside of the United States.  At the end of one of his trips to the United States, the defendant was arrested at JFK Airport in New York attempting to board a flight out of the country.

The defendant, a citizen of Zambia with a permanent resident card to live in the United States, will likely face deportation proceedings after his sentence. 

The Internal Revenue Service’s Criminal Investigation Division conducted the investigation.  Assistant U.S. Attorney mary Walters prosecuted the case

Daryl Henry, 24, and Pablo Ceniceros-Deleon, 19, pleaded guilty yesterday to a federal hate crime and other charges in connection with their involvement in a scheme to target gay men for violent crimes.

Daryl Henry pleaded guilty to one count of 18 U.S.C. § 249 (hate crime act) and one count of 18 U.S.C. § 371 (conspiracy to commit hate crimes, kidnapping, and carjacking). Pablo Ceniceros-Deleon pleaded guilty to one count of 18 U.S.C. § 249 (hate crime act), one count of 18 U.S.C. § 2119 (carjacking), and one count of 18 U.S.C. § 924(c) (use of a firearm during and in relation to a crime of violence).

“Kidnappings, carjackings, thefts, sexual assaults, and armed, violent attacks against innocent people are heinous crimes, and when perpetrators commit those crimes against victims because of their sexual orientation, the U.S. Department of Justice will continue zealously to seek justice for the victims and to punish the perpetrators to the full extent of the law,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “Prosecuting those who commit such monstrous acts because of victims’ sexual orientation is a priority of the Department of Justice, and we will continue to bring to justice anyone who commits such hateful, violent crimes.”

“These defendants used Grindr to single out their victim based on sexual orientation – something the Northern District of Texas simply will not tolerate,” said U.S. Attorney Erin Nealy Cox for the Northern District of Texas.  “Unfortunately, this is not the first time a dating app user has fallen victim to a violent crime. I’m urging the public to be vigilant about the dangers lurking online.”

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

According to court documents filed in connection with their guilty pleas, both Henry and Ceniceros-Deleon admitted Grindr was used, a social media dating platform primarily used by gay men, to lure gay men to a vacant apartment and other areas in and around Dallas for robbery, carjacking, kidnapping, and hate crimes. Henry admitted that he and others held the victims against their will in the vacant apartment. Ceniceros-Deleon admitted that he and others traveled to local ATMs to withdraw cash from the victims’ accounts. Both Henry and Ceniceros-Deleon admitted that while the victims were being held captive they were subjected to taunts based upon the co-conspirators’ perception of the men’s sexual orientation. 

In addition, Ceniceros-Deleon admitted to being the gunman in a Dec. 7, 2017, carjacking where he and others used Grindr to lure a man to a location and then forced the man, at gunpoint, to drive the conspirators to local ATMs to withdraw cash from the man’s account.

In March of 2019, Michael Atkinson pleaded guilty to conspiracy and kidnapping charges in connection with this case. Atkinson will be sentenced in February of 2020. Sentencing for Ceniceros-Deleon is set for April 1, 2020. The court has not set a sentencing hearing for Henry.

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

A federal jury found a Texas woman guilty today for her role in a $5.5 million scheme to overbill the U.S. Department of Labor Office of Workers’ Compensation Program for physical therapy and other services.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Erin Nealy Cox of the Northern District of Texas, Special Agent in Charge Robert Bourbon of the U.S. Department of Justice Office of Inspector General’s (DOJ-OIG) Dallas Field Office, Special Agent in Charge Steven Grell of the U.S. Department of Labor Office of Inspector General’s (DOL-OIG) Dallas Regional Office, Special Agent in Charge Chris Cave of the U.S. Postal Service Office of Inspector General’s (USPS-OIG) Southern Area Field Office and Special Agent in Charge James Ross of the U.S. Department of Veterans Affairs Office of Inspector General’s (VA-OIG) Criminal Investigations Division—South Central Field Office and Special Agent in Charge Ray Rayos of the U.S. Army Criminal Investigation Command, Major Procurement Fraud Unit (MPFU), Southwest Fraud Field Office made the announcement.

After a five-day trial, before U.S. District Judge Karen G. Scholer of the Northern District of Texas, Melissa Sumerour, 48, of Lorena, Texas, was found guilty of six counts of health care fraud.  Sentencing has not yet been scheduled.

According to evidence presented at trial, from approximately January 2011 to March 2017, Sumerour engaged in a scheme to defraud the Department of Labor’s Office of Workers’ Compensation Program by overbilling for physical therapy.  The evidence established that the fraud, in which Sumerour billed for more physical therapy than was provided, cost the Office of Workers’ Compensation Program in excess of $5.5 million.

One other defendant has been charged in this matter.  Latosha Morgan, 42, of Grand Prairie, Texas, pleaded guilty and is scheduled for sentencing in March 2020.    

This case was investigated by DOJ-OIG, DOL-OIG, USPS-OIG, VA-OIG, and Army CID-MPFU.  Trial Attorney Brynn Schiess and Counsel Amy Markopoulos of the Criminal Division’s Fraud Section are prosecuting the case.

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

Two former Federal Home Loan Bank executives have been sentenced to a combined 10 years in federal prison for conspiring to lie to the government-sponsored financial institution, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.

In July, several days into their trial, Terence Carlyle Smith, former FHLB - Dallas President, and Nancy B. Parker, former Chief Information Officer, both pleaded guilty to conspiracy to make false statements to a Federal Home Loan Bank.

U.S. District Judge Jane J. Boyle last week sentenced Mr. Smith, 62, to five years in federal prison and ordered him to pay $780,279.11 in restitution plus $4,219,720.89 in attorney’s fees to the bank and its insurance carriers.  The judge sentenced Ms. Parker, 66, to five years in federal prison and ordered her to pay $313,681.25 in restitution plus $227,953 in attorney’s fees.

“These defendants attempted to trick a Federal Home Loan Bank into footing the bill for their exorbitant personal travel,” said U.S. Attorney Nealy Cox. “We’re pleased the Judge held them accountable for undermining the public trust by handing down the maximum sentence.”

“The actions of these defendants placed at risk the public’s trust in the Federal Home Loan Bank of Dallas.  The Federal Housing Finance Agency Office of Inspector General (FHFA-OIG) is committed to investigating allegations of fraud committed against the Government Sponsored Enterprises, including the 11 Federal Home Loan Banks,” said Catherine Huber, Special Agent in Charge of the FHFA-OIG’s Central Region Office.  “The sentences handed down by the Court send a powerful message to those who would seek to victimize a Federal Home Loan Bank.  We are proud to have partnered with the U.S. Attorney’s Office for the Northern District of Texas in this case.”

In plea papers, the pair admitted that from 2009 to 2013, they submitted dozens of bogus expense reports to FHLB, claiming they’d attended professional conferences they never visited -- prompting FHLB to foot the bill for what was actually personal travel to Florida, California, and Nevada.  They also admitted to repeatedly falsely reporting their number of unused vacation hours.

According to the Indictment filed in 2017, the scheme cost FHLB more than $1.2 million -- $780,000 in travel expenses, including airfare, limousine rides, concerts, vineyard tours, luxury hotel rooms, and lavish meals for Mr. Smith, Ms. Parker, and several colleagues, and $450,000 in unused vacation time reimbursements. 

The Federal Housing Finance Agency Office of Inspector General led the investigation. Assistant U.S. Attorneys Errin Martin, Lindsey Beran, Tiffany Eggers, and Douglas Brasher prosecuted the case.

Daryl Henry, 24, and Pablo Ceniceros-Deleon, 19, pleaded guilty today to a federal hate crime and other charges in connection with their involvement in a scheme to target gay men for violent crimes following an investigation by the FBI’s Dallas Field Office, announced Assistant Attorney Eric Dreiband of the Justice Department’s Civil Rights Division and U.S. Attorney for the Northern District of Texas Erin Nealy Cox.

Daryl Henry pleaded guilty to a hate crime act, conspiracy to commit hate crimes,  kidnapping, and carjacking. Pablo Ceniceros-Deleon pleaded guilty to a hate crime act, carjacking, and use of a firearm during and in relation to a crime of violence.

“Kidnappings, carjackings, thefts, sexual assaults, and armed, violent attacks against innocent people are heinous crimes, and when perpetrators commit those crimes against victims because of their sexual orientation, the U.S. Department of Justice will continue zealously to seek justice for the victims and to punish the perpetrators to the full extent of the law,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “Prosecuting those who commit such monstrous acts because of victims’ sexual orientation is a priority of the Department of Justice, and we will continue to bring to justice anyone who commits such hateful, violent crimes.”

“These defendants used Grindr to single out their victim based on sexual orientation – something the Northern District of Texas simply will not tolerate,” said U.S. Attorney Erin Nealy Cox for the Northern District of Texas.  “Unfortunately, this is not the first time a dating app user has fallen victim to a violent crime. I’m urging the public to be vigilant about the dangers lurking online.”

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

According to court documents filed in connection with their guilty pleas, both Henry and Ceniceros-Deleon admitted Grindr, a social media dating platform primarily used by gay men, was used to lure gay men to a vacant apartment and other areas in and around Dallas for robbery, carjacking, kidnapping, and hate crimes. Henry admitted that he and others held the victims against their will in the vacant apartment. Ceniceros-Deleon admitted that he and others traveled to local ATMs to withdraw cash from the victims’ accounts. Both Henry and Ceniceros-Deleon admitted that while the victims were being held captive they were subjected to taunts based upon the co-conspirators’ perception of the men’s sexual orientation. 

In addition, Ceniceros-Deleon admitted to being the gunman in a Dec. 7, 2017, carjacking where he and others used Grindr to lure a man to a location and then forced the man, at gunpoint, to drive the conspirators to local ATMs to withdraw cash from the man’s account.

In March of 2019, Michael Atkinson pleaded guilty to conspiracy and kidnapping charges in connection with this case. Atkinson will be sentenced in February of 2020. Sentencing for both defendants is set for April 1, 2020.

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

Two Reagor Dykes Auto Group employees pleaded guilty this week to participating  in the auto group’s floor plan fraud scheme, following an investigation by the Federal Bureau of Investigation’s Dallas Field Office, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.

Elaina Marie Cabral, a 30-year-old Reagor Dykes office manager who worked at RDAG’s Toyota store in Plainview, and Whitney Erin Maldonado, a 44-year-old Reagor Dykes office manager who worked at RDAG’s Mitsubishi store in Lubbock, pleaded guilty Wednesday to conspiracy to commit wire fraud before Magistrate Judge Lee Ann Reno in Amarillo.

Their colleague, executive assistant to the CEO Ashely Nicole Dunn, 34, pleaded guilty to conspiracy to commit bank fraud in a related Reagor Dykes check kiting scheme last Wednesday.

They are three of eleven employees who have confirmed their roles in the $50 million Reagor Dykes scam. Admitted coconspirators include Reagor Dykes Chief Financial Officer Shane Andrew Smith and employees Sheila Miller, Lindsay Williams, Diana Urias, Paige Johnston, Pepper Rickman, Sherri Wood, and Brad Fansler.

In plea papers, Ms. Cabral and Ms. Maldonado admitted the company engaged in a practice they called “dummy flooring.”

Employees routinely dug through records for vehicle identification numbers (VIN) of cars Reagor Dykes had already sold, then submitted new loan applications to Ford Motor Credit Company using the old VINs – falsely indicating that the company was seeking a loan in order to repurchase the vehicle for resale, the pair admitted. After acquiring the new floor plan funding, instead of re-buying the car, Reagor Dykes used the ensuing loan to cover other expenses.

Ms. Dunn admitted in her plea papers that Reagor Dykes also engaged in systematic check kiting, a ploy that involves concealing fraud by cross-depositing checks across several banks.

Ms. Cabral and Ms. Maldonado each face up to five years in federal prison and may be required to pay approximately $27 million in restitution. Ms. Dunn also faces up to five years in prison and may be required to pay  approximately $23 million in restitution.

The Federal Bureau of Investigation and Internal Revenue Service - Criminal Investigation Division conducted the investigation. Assistant U.S. Attorneys Joshua Frausto, Jeffrey Haag, and Sean Taylor are prosecuting the case.

A 42-year-old Dallas man has been sentenced to 30 years in federal prison following a conviction for multiple terrorism charges, announced Assistant Attorney General for National Security John C. Demers and U.S. Attorney for the Northern District of Texas Erin Nealy Cox.

Following a three-and-a-half day trial, Said Azzam Mohamad Rahim, a 42-year-old United States citizen, was convicted in May of one count of conspiracy to provide material support to a designated foreign terrorist organization (FTO), one count of attempting to provide material support to an FTO, and six counts of making false statements involving international terrorism to federal authorities.

“Mr. Rahim embraced a warped ideology on social media, promoting violence against innocent people, including Americans,” said U.S. Attorney Erin Nealy Cox. “The Justice Department is committed to combatting terror at home and abroad.”

“Rahim spread the violent message of ISIS online,” said Assistant Attorney General for National Security John Demers. “He also attempted to travel to support ISIS and then lied to FBI when questioned about his activities. This sentence is the consequence of his criminal activities and a clear message to others who would consider following in his footsteps: don’t.” 

According to evidence presented at trial, Mr. Rahim moderated a social media channel dedicated to recruiting fighters for the Islamic State of Iraq and al-Sham, or ISIS, a State Department designated terror group.  

Mr. Rahim used Zello, a push-to-talk direct messaging application, to promote violence in ISIS’s name, prosecutors said.

Records showed he spent years on Zello’s “State of the Islamic Caliphate” channel, where he touted acts of terror under various monikers: 

“Kill and do not consult anyone,” he said in July 2016. “Kill by any means, smash his head on the wall, spit in his face, burn -- I mean anything, anything – poison, anything.” 

“Brothers!  What are you waiting for?” he said a month later. “Mobilize and perform jihad for the cause of Allah…. Some of the brothers mobilized from this channel, they were amongst us.”

He even praised several terrorist attacks after the fact.

“I was happy for this act,” Rahim said after a truck barreled into a crowd of people in Nice, France, killing 86. “Those dogs.”

Mr. Rahim was arrested on March 5, 2017 at the Dallas Fort Worth International Airport, where he was attempting to board a flight to Amman, Jordan.  Asked by agents if he had ever supported ISIS, advocated travel for the purposes of jihad, promoted violence on ISIS’s behalf, or encouraged anyone to kill infidels at the urging of ISIS spokesman Abu Mohammed al-Adnan, Mr. Rahim said “no.”

The Federal Bureau of Investigation’s Dallas Field Office, the U.S. Department of State – Diplomatic Security Services, and the Joint Terrorism Task Force conducted the investigation. Assistant United States Attorney Errin Martin and Trial Attorney Taryn Meeks of the National Security Division’s Counterterrorism Section prosecuted the case.  U.S. District Judge Jane Boyle presided over the trial.

A 42-year-old Dallas, Texas, man has been sentenced to 30 years in federal prison following a conviction for multiple terrorism charges.

Following a three-and-a-half day trial, Said Azzam Mohamad Rahim, a 42-year-old United States citizen, was convicted in May of one count of conspiracy to provide material support to a designated foreign terrorist organization (FTO), one count of attempting to provide material support to an FTO, and six counts of making false statements involving international terrorism to federal authorities.

“Rahim spread the violent message of ISIS online,” said Assistant Attorney General for National Security John C. Demers.  “He also attempted to travel to support ISIS and then lied to FBI when questioned about his activities.  This sentence is the consequence of his criminal activities and a clear message to others who would consider following in his footsteps: don’t.” 

 “Mr. Rahim embraced a warped ideology on social media, promoting violence against innocent people, including Americans,” said U.S. Attorney Erin Nealy Cox for the Northern District of Texas.  “The Justice Department is committed to combatting terror at home and abroad.”

According to evidence presented at trial, Rahim moderated a social media channel dedicated to recruiting fighters for the Islamic State of Iraq and al-Sham, or ISIS, a State Department designated terror group.  

Rahim used Zello, a push-to-talk direct messaging application, to promote violence in ISIS’s name, prosecutors said.

Records showed he spent years on Zello’s “State of the Islamic Caliphate” channel, where he touted acts of terror under various monikers: 

“Kill and do not consult anyone,” he said in July 2016.  “Kill by any means, smash his head on the wall, spit in his face, burn -- I mean anything, anything – poison, anything.” 

“Brothers!  What are you waiting for?” he said a month later.  “Mobilize and perform jihad for the cause of Allah…. Some of the brothers mobilized from this channel, they were amongst us.”

He even praised several terrorist attacks after the fact.

“I was happy for this act,” Rahim said after a truck barreled into a crowd of people in Nice, France, killing 86. “Those dogs.”

Rahim was arrested on March 5, 2017, at the Dallas Fort Worth International Airport, where he was attempting to board a flight to Amman, Jordan.  Asked by agents if he had ever supported ISIS, advocated travel for the purposes of jihad, promoted violence on ISIS’s behalf, or encouraged anyone to kill infidels at the urging of ISIS spokesman Abu Mohammed al-Adnan, Rahim said “no.”

The FBI, the U.S. Department of State – Diplomatic Security Services, and the Joint Terrorism Task Force conducted the investigation.  Assistant U.S. Attorney Errin Martin and Trial Attorney Taryn Meeks of the National Security Division’s Counterterrorism Section prosecuted the case.  U.S. District Judge Jane Boyle presided over the trial.

On December 3, Severo Elizalde-Abelardo, 39, was sentenced to ­­­33 years and 9 months in federal custody for conspiracy to distribute a controlled substance. Elizalde-Abelardo managed and directed multiple drug deals between his codefendants. He instructed his coconspirators to meet with customers and count the money. When his home was searched, officers found 13 kilograms of methamphetamine, a handgun, and 20 pounds of MSM. This case was investigated by the High Intensity Drug Trafficking Areas Program, Drug Enforcement Administration, Internal Revenue Service, Homeland Security Investigations, Fort Worth Police Department, and Dallas Sheriff Office and prosecuted by AUSA Phelesa Guy. 

On December 3, Jerson Gutierrez-Ramos, 20, was sentenced to 39 years and 7 months in federal custody for racketeer influenced and corrupt organizations conspiracy. Gutierrez-Ramos was associated with the Irving Loco Salvatruchas clique. Gutierrez-Ramos and other gang members attacked two victims in their home, beating them with a metal bar and machete with the intent to kill. This is one example of ten different victims listed in court documents that Gutierrez-Ramos attacked in order to increase his position within the gang. This case was investigated by Homeland Security Investigations, Immigration and Customs Enforcement, Irving Police Department, and Dallas Police Department, and prosecuted by AUSA Gary Tromblay.

On December 6, Desmond Howard Greer, 26, was sentenced to 10 years in federal custody for the possession of a firearm by a convicted felon. Greer was found to be in the possession of a multi-caliber rifle in violation of the terms of his prior conviction. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and was prosecuted by AUSA John Boyle.

A convicted domestic violence offender discovered with a firearm was sentenced last week to 10 years in federal prison, the statutory maximum sentence, following an investigation by the ATF Dallas Division, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.

Desmond Greer, 26, pleaded guilty in March to possession of a firearm by a convicted felon.

Dallas County Court records show that in in 2016, Mr. Greer was twice convicted of Assault Family Violence after repeatedly punching and choking the 22-year-old mother of his children – two offenses that disqualified him from having a gun.

In spite of this restriction, Mr. Greer was seen brandishing a M-15 multi-caliber rifle during a dispute with a customer at his auto shop, federal prosecutors said.

“Federal law forbids convicted abusers from carrying guns – in part because research shows domestic violence offenders are five times more likely to kill their partner when there’s a gun in the home,” said U.S. Attorney Nealy Cox.  “Prosecuting offenders who violate these domestic violence firearm restrictions is homicide prevention, plain and simple.”

“Mr. Greer is a convicted felon with a history of domestic violence offenses,” stated ATF Special Agent in Charge of the Dallas Division Jeffrey C. Boshek II. “When prohibited people and abusers unlawfully possess firearms, the probability of intimate partner homicide increases substantially. This sentence ensures Mr. Greer will not be a threat to the public, or to his family, for a very long time.”

The case was brought as part of the U.S. Attorney’s Domestic Violence Initiative, a push to fight domestic violence using federal firearm laws, which prohibits convicted abusers from possessing guns.  

The prosecution is also part of Project Guardian, the Justice Department’s signature initiative to reduce gun violence using federal firearm laws.

The Bureau of Alcohol, Tobacco, Firearms & Explosives conducted the investigation. Assistant U.S. Attorney John J. Boyle prosecuted the case. Chief U.S. District Judge Barbara M. G. Lynn handed down the sentence.  

The lead defendant in a drug-smuggling ring that attempted to traffic methamphetamine through the Dallas Fort Worth International Airport was sentenced this afternoon to 16 years and 8 months in federal prison, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.

Nelson Pabon, 48, pleaded guilty in March to conspiracy to possess with intent to distribute a controlled substance.

In plea papers, Mr. Pabon – a former airline supervisory crew chief from Friendswood, Texas– admitted that he worked with several individuals to circumvent security at DFW Airport in order to load purported drugs onto commercial flights.  

Mr. Pabon told undercover agents that because he received advance notice of narcotic canine baggage sweeps, he was well-positioned to sneak drugs onto cross-country jets in return for cash.

On at least six occasions between August 2016 and May 2018, Mr. Pabon and his coconspirators smuggled purported crystal meth – in actuality a dummy substance provided by undercover agents – onto commercial flights to Newark, New Jersey, he admitted.  

Other members of the conspiracy smuggle purported crystal methamphetamine onto commercial flights to Charlotte, North Carolina, and Phoenix, Arizona.

Mr. Pabon further acknowledged he even contemplated smuggling inert explosives, which he was told would not combust en route, and told others, including Michael Alexis Rivera Vasquez and Jean Loui Vargas Malave, that they would get paid more for smuggling the explosives.  

“These defendants attempted to subvert the security systems that keep Americans safe in the skies,” said U.S. Attorney Nealy Cox. “Airport and airline workers cannot be allowed to leverage their positions of trust and profit off transporting deadly substances. We must all be insist that every precaution is taken to prevent security breaches of this type. ”   

“The defendants exploited their employee access for personal gain and jeopardized the safety of airline travelers. The FBI would like to thank our local and federal partners for working with us to dismantle this criminal enterprise,” said FBI Special Agent in Charge Matthew J. DeSarno of the Dallas Field Office. “Our citizens expect all airports to be safe and secure. We will remain vigilant and investigate anyone who attempts to compromise aviation security.”

Mr. Pabon is one of 12 coconspirators indicted in two cases involving bypassing airport security to smuggle contraband onto commercial airline flights at DFW.  Two co-defendants, Benitez Matienzo, a 46 -year-old baggage handler, and Michael Alexis Riviera Vasquez, a 22-year-old  baggage handler, were sentenced today to 45 months and 48 months, respectively.

Camacho Melendez, 23, was sentenced Thursday to 97 months in federal prison; Cristian David Cruz-Rodriguez, 24, was sentenced in October to 65 months; Joshua Israel Pagan Zapata, 22, was sentenced in October to 63 months; Domingo Villafane Martinez, 32, was sentenced in August to 27 months; Jose Luis Gaston-Rolon, 25, was sentenced in August to 87 months; Luis Javier Collazo Rosado, 23, was sentenced in July to 30 months; and Kiir Akan Carson, 26, was sentenced in June to 12 months, 1 day, all for conspiracy to possess with intent to distribute a controlled substance.

Jean Loui Vargas Malave* is the only remaining captured defendant pending sentencing.  He is set to be sentenced on January 23, 2020.

The law enforcement operation was led by the Federal Bureau of Investigation’s Dallas Field Office, the Dallas Police Department, and the Internal Revenue Service Criminal Investigation Division. Assistant U.S. Attorneys George Leal, John de la Garza, and John Kull are prosecuting the cases.

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*UPDATE, 2/3/2020: Co-defendant Jean Loui Vargas Malave, 23, was sentenced on January 31, 2020 to 10 years in federal prison for conspiracy to possess with intent to distribute methemphetamine. 

A Brownfield doctor who prescribed drugs without legitimate medical purpose was sentenced today to five years in federal prison and ordered to pay $70,000 in restitution following an investigation by the DEA, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox. 

Dr. Dennis D. Tedford, a 59-year-old family medicine doctor, pleaded guilty in May to distributing or dispensing a Schedule IV controlled substance by a practitioner.

In plea papers, Dr. Tedford admitted that he intentionally dispensed alprazolam, a Schedule IV benzodiazepine, and carisoprodol, a Schedule IV muscle relaxer, to an individual identified as “R.M.” for reasons other than for a legitimate medical purpose and in the usual course of his professional practice. 

“Texans expect their doctors to prescribe drugs only when they’re medically necessary,” said U.S. Attorney Nealy Cox. “This defendant took advantage of his medical license to spread drugs throughout his community. We are grateful to the analysts and investigators who were able to identify his criminal behavior and put a stop to it.”

“A physician who is board certified in family practice should never prescribe pain medicine at the levels Dennis Tedford was prescribing, many for non-medical purposes,” said Special Agent in Charge of the DEA Dallas Field Division Clyde E. Shelley, Jr.  “Addiction destroys people and families.

Dr. Tedford’s  factual resume states that in January 2018, a source of information (SOI) at a pharmacy in Lubbock contacted the DEA to express concerns about Dr. Tedford’s prescribing practice. The SOI stated that Dr. Tedford prescribed high quantities of hydrocodone, as well as alprazolam and carisoprodol.  According to the SOI, individuals were driving from Lubbock to Brownfield – located approximately 45 minutes southwest of Lubbock – to see Dr. Tedford and then returning to Lubbock to fill the prescriptions. The SOI said that Dr. Tedford’s patients would frequently ask for early refills.

In March 2018, DEA diversion investigators requested an analysis from the Texas Commissioned Online Prescription System (TXCOPSRX), comparing Dr. Tedford’s prescribing to all physicians located in Terry County (est. population 12,739) and Lubbock County (est. population 299,453) over a two year period. According to TXCOPSRX, Dr. Tedford ranked ninth for total number of prescriptions issued for hydrocodone in Lubbock and Terry Counties combined, having prescribed 524,777 doses of hydrocodone to 341 patients between March 2016 and March 2018.  Dr. Tedford was ranked first in the total number of prescriptions issued for carisoprodol in Lubbock and Terry Counties combined, having prescribed 96,763 doses of carisoprodol during this time period to 102 patients.

The investigators knew that it was highly unusual for a family medicine physician that specializes in obstetrics and who is not registered with the State of Texas as a pain management clinic to be ranked this high for hydrocodone prescriptions.

They requested an second TXCOPSRX analysis of Dr. Tedford’s prescribing and learned that between January 2016 and December 2017, the top three controlled substance prescriptions written by Dr. Tedford were for hydrocodone, carisoprodol, and alprazolam.  Specifically, according to what was reported to the Texas Department of Public Safety, Dr. Tedford wrote prescriptions totaling 539,637 hydrocodone tablets, 96,519 carisoprodol tablets, and 33,955 alprazolam tablets in this two-year time period.  Most notably, of the hydrocodone tablets prescribed by Dr. Tedford, approximately 98 percent of these tablets contained the highest two dosage strengths available (7.5 mg or 10 mg). Approximately 99.9 percent of the carisoprodol tablets contained the highest dosage strength (350 mg) available. 

In July 2018, DEA requested that a doctor who is board certified in family medicine and a clinical professor at the University of California, Irvine School of Medicine review some of Dr. Tedford’s patient files to determine whether Dr. Tedford prescribed certain controlled substances for a legitimate medical purpose and in the usual course of his professional practice. 

This medical expert reviewed patient files for a dozen of Dr. Tedford’s patients and found that, in 10 of those 12 cases, Dr. Tedford prescribed controlled substances for no legitimate medical purpose, that his prescribing was far outside the usual course of legitimate professional medical practice, and that there were multiple departures from the Standard of Care.     

The Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorney Jeffrey R. Haag led the prosecution. United States District Judge James Wesley Hendrix handed down the sentence.  

A Shallowater, Texas man was convicted today of enticement and attempted enticement of a minor following an investigation by the FBI’s Lubbock Resident Agency, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.

John David Martinez, 32, was indicted in August.  Following a day and a half of trial, a federal jury deliberated for just 15 minutes before finding him guilty.

According to evidence presented at trial, Mr. Martinez initiated a text chain with his 11-year-old niece in July 2018.

Over the course of 7,702 text messages, he bullied the young girl into agreeing to have sex with her then 31-year-old uncle.

Fortunately, the child’s babysitter spotted the messages on her phone, and law enforcement was able to intervene before Mr. Martinez could actually molest the child.

The defendant now faces a potential sentence of up to life in federal prison. His sentencing date has not yet been set.

The Federal Bureau of Investigation, 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. U.S. District Judge James Wesley Hendrix presided over the trial.

SENTENCING - LEONARDO MARROQUIN

On November 21, Leonardo Marroquin, 30, was sentenced to 2 years and 9 months in federal custody for possession with the intent to distribute methamphetamine. On February 23, 2017, Marroquin committed a traffic violation and was stopped by officers.  During the traffic stop he was found to be in possess of 498 grams of methamphetamine. The case was investigated by the Drug Enforcement Administration and the Dallas Police Department and prosecuted by AUSA George Leal.  

 

SENTENCING – DEBRA DAVIS THOMPSON

On November 21, Debra Davis Thompson, 47, was sentenced to 2 years in federal custody for tax evasion. In 2013, Thompson filed a false Income Tax Return Form and submitted it to the Internal Revenue Service. She underrepresented her income by $218,304, defrauding the American government of $69,064 in taxes. This case was prosecuted by AUSA Nick Bunch and investigated by the Internal Revenue Service – Criminal Investigation and the United States Secret Service.    

 

SENTENCING – RICKY LOVELY

On November 21, Ricky Lovely, 31, was sentenced to 3 years and 5 months in federal custody for possession of stolen firearms and aiding and abetting. In May 2017, an ATF agent, acting on information provided to the agency, called and arranged a meeting with Lovely. The agent purchased three firearms from Lovely at a QuikTrip gas station, and confirmed through records checks that two of the pistols were stolen. Lovely was found to be in possession of another pistol that he intended to sell at the time of his arrest. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by AUSA Myria Boehm and AUSA Cara Pierce.

 

A federal grand jury indicted a Dallas man for gun and drug crimes after he was discovered with multiple unlawful machineguns, as well as heroin and cocaine, following an investigation by the ATF, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.

Ramon Navarro, III – aka Trae Alvarez – was charged with four counts of possession of an unregistered firearm and eight counts of distribution of a controlled substance. He has been ordered detained pending trial.

According to court documents, Mr. Navarro, 21, allegedly possessed at least four standalone machinegun conversion sears, three-piece devices designed to convert semiautomatic weapons into machineguns.

He also allegedly possessed at least six Glock pistols with incorporated sears, which effectively transformed the Glocks into machineguns.

“This defendant attempted to circumvent our nation’s gun laws by converting legal firearms into unlawful machineguns,” said U.S. Attorney Nealy Cox. “Machineguns have no place on the streets of Dallas. Using federal firearm laws to reduce gun violence is among the Justice Department’s highest priorities.”

“When firearms and drugs can be readily obtained in an underground market, the challenge of reducing violence in our communities is much greater,” stated ATF Dallas Field Division Special Agent in Charge Jeffrey C. Boshek II. “Individuals who bypass regulations designed to protect our communities fuel the devastation possible when firearms end up in the hands of prohibited persons as well as impede justice for the victims.”

Unlike semiautomatic firearms, machineguns – weapons that can shoot more than one shot, without manual reloading, by single function of the trigger – are generally unlawful for civilians under the National Firearms Act.

In a criminal complaint filed in October, an undercover ATF agent alleged that Mr. Navarro sold him at least three of the converted Glocks for roughly $1,500 apiece, and even demonstrated one firearm’s functionality as a machinegun.  

All of the machinegun conversion sears in Mr. Navarro’s possession lacked serial numbers and were of unknown origin.  

An indictment is a formal accusation of criminal conduct, not evidence, and the defendant is presumed innocent until proven guilty in a court of law.

The Bureau of Alcohol, Tobacco, Firearms & Explosives conducted the investigation with the assistance of the Dallas Police Department. Assistant U.S. Attorney Linda Requénez is prosecuting the case.  

This case was prosecuted under Project Guardian, a Department of Justice initiative aimed at reducing gun violence by enforcing federal firearm laws through coordination between the federal government and state and local law enforcement.

SENTENCING - Michael Webb

On November 14, Michael Webb, 51, was sentenced to life in federal prison for the kidnapping of an 8 year old girl in Fort Worth. Webb took the child from her mother’s arms in May of 2018 and held her captive for hours in a hotel room. To read more about this case, please click here. This case was investigated by the Federal Bureau of Investigation’s North Texas Child Exploitation Task Force, the Fort Worth Police Department’s Major Case Unit Taskforce, Homeland Security Investigations and the Texas Department of Public Safety. The case was prosecuted by US Attorney Erin Nealy Cox and AUSA Aisha Saleem.

 

SENTENCING - Marco Antonio Duran Gaona

On Novmeber 14, Marco Antonio Duran Gaona, 32, was sentenced to 11 years and 3 months in federal custody for possession with intent to distribute heroin. Duran Gaona was also ordered to forfeit $21,980 that was determined to be proceeds of drug trafficking. Duran Gaona was the passenger in a vehicle that contained approximately 20 kilograms of methamphetamine.  Agents subsequently searched Duran Gaona’s residence, and located an additional 40 kilograms of methamphetamine, 30 kilograms of heroin, packing materials and a scale. This case was investigated by the Federal Bureau of Investigation, the Criminal Investigations Division of the Internal Revenue Service, and the Dallas Police Department and was prosecuted by AUSA George Leal.

 

SENTENCING - Edgard Jose Sanabria-Carballo

On November 14, Edgard Jose Sanabria-Carballo, 30, was sentenced to 3 years and 10 months in federal custody for possession with intent to distribute cocaine. Sanabria-Carballo was observed at the Tornado Bus Station in Dallas, Texas.  Officers received permission to search his luggage inside the terminal.  During the search officers found approximately 8.038 kilograms of a substance that tested positive for cocaine.   Sanabria-Carballo was then arrested. The case was investigated by the Federal Bureau of Investigation and the Dallas Police Department and was prosecuted by AUSA George Leal. 

 

GUILTY PLEA – Kyle Daniel Pearcy

On November 12, Kyle Daniel Pearcy, 26, pled guilty to aiming a laser pointer at an aircraft. Pearcy knowingly aimed a laser pointer at a helicopter operated by the Dallas Police Department after midnight in August 2019. He aimed the laser pointer five times for short bursts totaling 13 seconds, causing crew members to squint their eyes to protect their vision. The case record labeled this case as a “knuckleheaded act of stupidity.” This case was investigated by the Federal Bureau of Investigations and is prosecuted by AUSA John de la Garza.

 

SENTENCING – Jordan Rotenberry

On November 14, Jordan Rotenberry was sentenced to 4 years and 8 months in federal custody for conspiracy to commit access device fraud. Rotenberry obtained devices such as stolen debit and credit cards with which he purchased goods and services at hotels across the Dallas, TX area. Rotenberry and his coconspirators possessed approximately 695 unauthorized and counterfeit access devices during a 5 month period, which they obtained through chat rooms, the dark web, and Facebook messages. This case was investigated by the United States Secret Service and the Colleyville Police Department and was prosecuted by AUSA Ryan Raybould.

An MS-13 gang member was sentenced to 20 years in federal prison for his role in a brutal machete attack at a park just outside Dallas, Texas, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Erin Nealy Cox for the Northern District of Texas.

Manuel Amaya-Alvarez, 22, pleaded guilty in May to four counts of violent crime in aid of racketeering (VICAR).  U.S. District Judge Jayne Boyle for the Northern District of Texas sentenced Amaya-Alvarez Nov. 14.

According to court documents, Amaya-Alvarez – an El Salvadorian national in the United States illegally – admitted he belonged to MS-13, a notorious and violent transnational street gang.

In Sept. 25, 2017, he admitted he and fellow MS-13 gang members attempted to “take out,” or kill, four individuals at Running Bear Park in Irving, Texas.

That night, the gang lured an individual – a man they perceived to be a rival gang member – to the park under the guise that they wanted to buy his tattoo machine.  The man came with two other men and a female acquaintance.  When they arrived, gang members lured them to wooded area in the back of the park, where additional gang members – armed with a shotgun, machetes, and clubs – lay in wait. 

After Amaya-Alvarez and another gang member, both seated on a park bench, greeted the victims, the other gang members appeared and surrounded the victims, forcing them to kneel on the ground before robbing them and attacking them with machetes and clubs, according to court documents.  The three men fled, but the female could not escape and was savagely maimed and left for dead.

Two of the men also suffered serious physical injuries, including blunt trauma from blows and severe cuts from a machete.

U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Irving Police Department conducted the investigation.  Trial Attorney Julie Finocchiaro with the Department of Justice's Organized Crime and Gang Section and Assistant U.S. Attorneys Gary Tromblay and Sid Moody are prosecuting the case.

An MS-13 gang member was sentenced to 20 years in federal prison for his role in a brutal machete attack at a park just outside Dallas, Texas, announced  U.S. Attorney for the Northern District of Texas Erin Nealy Cox Assistant Attorney General Brian A. Benczkowski.

“We cannot allow machete-wielding gang members to menace our neighborhoods,” said U.S. Attorney Nealy Cox. “The feds are determined to put anyone who commits violence in the name of this brutal transnational gang behind bars.”    

“Transnational MS-13 gang members brutally target rival gangs in the U.S. and use our cities as their own personal urban battlefield,” said Ryan L. Spradlin, special agent in charge of HSI Dallas.  “This gang member’s reign of terror in the U.S. is over while he spends the next 20 years in U.S. federal prison.”

Manuel Amaya-Alvarez, 22, pleaded guilty in May to four counts of violent crime in aid of racketeering (VICAR).  U.S. District Judge Jayne Boyle handed down Amaya-Alvarez’s sentence on Nov. 14.

According to court documents, Amaya-Alvarez – an El Salvadorian national in the United States illegally – admitted he belonged to MS-13, a notorious and violent transnational street gang.

In Sept. 25, 2017, he admitted he and fellow MS-13 gang members attempted to “take out,” or kill, four individuals at Running Bear Park in Irving, Texas.

That night, the gang lured an individual – a man they perceived to be a rival gang member – to the park under the guise that they wanted to buy his tattoo machine.  The man came with two other men and a female acquaintance.  When they arrived, gang members lured them to wooded area in the back of the park, where additional gang members – armed with a shotgun, machetes, and clubs – lay in wait. 

After Amaya-Alvarez and another gang member, both seated on a park bench, greeted the victims, the other gang members appeared and surrounded the victims, forcing them to kneel on the ground before robbing them and attacking them with machetes and clubs, according to court documents.  The three men fled, but the female could not escape and was savagely maimed and left for dead.

Two of the men also suffered serious physical injuries, including blunt trauma from blows and severe cuts from a machete.

U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Irving Police Department conducted the investigation.  Assistant U.S. Attorneys Gary Tromblay and Sid Moody and Trial Attorney Julie Finocchiaro with the Department of Justice's Organized Crime and Gang Section are prosecuting the case.

A suspected neo-Nazi was charged with a gun crime following an investigation by the FBI, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.  

Aiden Bruce-Umbaugh, 23, was charged with possession of a firearm by an unlawful user of a controlled substance after he was arrested in Post, Texas, dressed in tactical gear and in possession of multiple assault rifles.

A federal grand jury indicted Mr. Bruce-Umbaugh Wednesday.

According to a criminal complaint filed a week prior, local law enforcement executed a traffic stop for a blue Ford Focus on Nov. 4. The vehicle was driven by Kaleb Cole; Mr. Bruce-Umbaugh was seated in the front passenger seat.

Inside the vehicle, law enforcement allegedly discovered an AR-15 rifle, two AK-47 rifles, a Sig Sauer 9mm pistol, at least 1,500 rounds of ammunition, a small canister of marijuana, and approximately two grams of THC oil.

Mr. Bruce-Umbaugh – who “avoided eye contact and limited conversation” with law enforcement and denied having anything illegal inside the vehicle during the traffic stop– later admitted that the firearms, marijuana, and THC belonged to him, telling investigators he smoked marijuana on a daily basis, according to the complaint.

“Federal prosecutors are committed to enforcing our nation’s gun laws to keep communities safe,” said U.S. Attorney Nealy Cox. “As a drug user, this defendant should never have been allowed to possess firearms.”  

“The large amount of weapons and ammunition seized from the defendant is alarming and we understand there is a cause for concern,” said FBI Special Agent in Charge Matthew J. DeSarno of the Dallas Field Office. “The FBI works with our law enforcement partners daily to protect our communities from harm. We want to reassure the public that swift action was taken to remove weapons from a dangerous individual.”

In a detention hearing Wednesday, prosecutors argued the government had reason to believe Mr. Bruce-Umbaugh is a member of AtomWaffen Division, a neo-Nazi hate group.

In jailhouse phone calls, Mr. Bruce-Umbaugh allegedly referenced his affiliation with “the group” and discussed a photo taken of him and another AtomWaffen Division member at the Auschwitz concentration camp, prosecutors said at the detention hearing.

Propaganda videos admitted into evidence – which spew hateful rhetoric against Jews – depict members of the AtomWaffen Division at self-described “hate camps” practicing hand-to-hand combat and shooting firearms. 

An indictment is a formal accusation of criminal conduct, not evidence. Like all defendants, Mr. Bruce-Umbaugh is innocent unless and until proven guilty in a court of law.

If convicted, he faces a sentence of up to 10 years in federal prison.

The Federal Bureau of Investigation’s Lubbock Resident Agency and the Garza County Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Russell Lorfing is prosecuting the case.

Kidnapper Michael Webb has been sentenced to life in federal prison, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.

Following a two-day trial in September, a federal jury in Fort Worth deliberated for less than 10 minutes before convicting Webb, 51, of kidnapping an 8-year-old girl.

“The defendant stole this victim's innocence,” U.S. Attorney Nealy Cox said in Court. "She knows that there is evil in this world. Evil has a face, and that face is Michael Webb's."  

“A dangerous predator is spending the rest of his life behind bars because law enforcement and citizen volunteers worked tirelessly to safely bring the victim home. The FBI’s North Texas Child Exploitation Task Force is committed to assisting our law enforcement partners in the protection of the most vulnerable in our community,” FBI Special Agent in Charge Matthew J. DeSarno of the Dallas Field Office said in a statement following the verdict. “Today’s sentence sends an important message to all predators. We will not allow any crime against children to go unpunished.”

According to evidence presented at trial, Webb grabbed the little girl as she and her mother were walking down Fort Worth’s 6th Avenue at 6:38 p.m. on Saturday, May 18. Neighborhood surveillance video shows the victim’s mother knocked to the ground as Webb’s car drives away.

The victim’s mother testified, describing her daughter as “brave, strong, and smart” before describing for the jury the horrific details of the “physical fight” for her daughter’s life.

In a three-hour recorded interview with the FBI, Webb confessed to the kidnapping, admitting that after successfully fighting off the child’s mother, he drove to a church parking lot. Later that evening, he admitted that he took the girl to Forest Hill’s WoodSprings Suites hotel, where he carried the child into a room and held her captive.

It was around midnight when a tip led Forest Hill police officers to Webb’s room. Shortly before their arrival, Webb admitted to threatening the girl, and hiding the girl from law enforcement in a small laundry basket. The officers, having visually inspected the room, left without finding the child.

Meanwhile, friends, volunteers, and law enforcement canvassed the city of Fort Worth looking for the missing girl. It was ultimately the efforts of a family friend who spotted Webb’s Ford sedan and called 911. Fort Worth Police Department responded and confirmed that there appeared to be blood on the front passenger seat. Law enforcement then acted quickly to gain entry into the hotel room, rescuing the victim who was found hidden in the laundry basket.

“We got her, we got her!” officers announced on their radios. “He’s in custody; we have her.”

The investigation was conducted by the Federal Bureau of Investigation’s North Texas Child Exploitation Task Force, the Fort Worth Police Department’s Major Case Unit Taskforce, which includes representatives of local law enforcement around the region, Homeland Security Investigations and the Texas Department of Public Safety. U.S. Attorney Erin Nealy Cox and Assistant U.S. Attorney Aisha Saleem, the District’s Project Safe Childhood Coordinator, are prosecuting the case. U.S. District Judge Reed C. O’Connor presided over the trial.

GUILTY PLEA – Demeron Jamal Brown

On November 7, Demeron Jamal Brown, 36, pled guilty to conspiracy to possess with the intent to distribute heroin and possession of a firearm by a felon. Brown and his coconspirators utilized a room within the Han Gil Hotel to distribute heroin, methamphetamine, cocaine, and other drugs to customers. He was arrested when officers responded to a 911 call regarding a man armed with an assault rifle. Officers seized 187 grams of cocaine, 900 grams of methamphetamine, and various other drugs. Brown faces up to 20 years in federal custody. To read more about the Han Gil case, click here or here. This investigation was led by the Drug Enforcement Administration and the case was prosecuted by AUSA Rick Calvert and AUSA Phelesa Guy.

GUILTY PLEA – Pedro Perez-Velazquez

On November 7, Pedro Perez-Velazquez, 49, pled guilty to conspiracy to possess with the intent to distribute methamphetamine. Perez-Velazquez drove a vehicle with methamphetamine concealed in the tires from Mexico to Dallas on multiple occasions. He routinely dropped off the vehicle at a location where the tires would be dismantled, and would wait in a hotel until the drugs had been retrieved. He faces a maximum sentence of life in prison. This case was investigated by the Drug Enforcement Administration and prosecuted by AUSA Rachael Jones.

GUILTY PLEA – Constance Marie Kelly

On November 5, Constance Marie Kelly pled guilty to conspiracy to commit wire fraud. Between 2002 and 2007, Kelly had access to funds deposited in an escrow account at Compass Bank and used this access to move funds to the bank account controlled by her codefendant. Kelly moved a total of $1.4 million in furtherance of this crime. She faces up to 5 years in federal custody and a $250,000 fine. This case was investigated by the Federal Bureau of Investigation – Dallas Field Office and is prosecuted by AUSA David Jarvis.

GUILTY PLEA – Roger Rojas Aventura

On November 5, Roger Rojas Aventura, 35, pled guilty to receipt of child pornography. The Ozark, Arkansas Police Department conducted an investigation into the eDonkey peer-to-peer file sharing network. Law enforcement officials found that Rojas Aventura’s IP address was linked to the website and had downloaded child pornography. He possessed over 130 images and 201 videos of child pornography. He faces up to 20 years in federal custody. This case was investigated by the US Department of Homeland Security, the Ozark Police Department, and the Dallas Police Department and is prosecuted by SAUSA Danielle Jones.

SENTENCING - James Jeaphier Tobar Ramon

On November 4, James Jeaphier Tobar Ramon, 29, was sentenced to 4 years in federal custody and over $1 million in restitution for his racketeer influenced and corrupt organization conspiracy. Tobar and his coconspirators used rental vehicles, obtained by fraudulent identification documents, to stop a traveling jewelry salesman’s car. They broke the window of the defendant’s car and stole over $1 million in diamonds and personal property. This was one of many robberies that were committed by this group, who disguised their identities using long sleeved clothing, gloves, and masks. This case was investigated by the Federal Bureau of Investigation Dallas Violent Crime Squad and prosecuted by AUSA Keith Robinson.

A Laredo man has been charged via federal criminal complaint with carjacking resulting in serious bodily injury after brutally assaulting a woman in a downtown Dallas parking garage, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.  

David Cadena – who had twice bonded out of Dallas County Jail after being charged by the state with aggravated assault with a deadly weapon and aggravated robbery – made his initial appearance in federal court Tuesday afternoon.

“Violent criminals should not be released when they pose a danger to the community. In this instance, a violent defendant was released not once, but twice, after posting minor bonds,” said U.S. Attorney Nealy Cox. “The citizens of Dallas deserve a better system – one that fairly detains individuals who pose significant danger to their victims and to the public. The U.S. Attorney’s Office is determined to hold Mr. Cadena accountable for his brutal crime – and to keep him detained pending trial.”

“FBI Dallas’s Violent Crime Task Force is focused on apprehending individuals who routinely commit acts of violence and are a threat to the community,” said FBI Special Agent in Charge of the Dallas Field Office Matthew J. DeSarno. “The defendant brutally attacked the victim in this case. The FBI is committed to working with our law enforcement partners to eradicate violent offenders and protect the communities we serve.”

According to the complaint, Mr. Candea, 25, allegedly savagely assaulted the victim with a fire extinguisher in the parking garage of the Statler Hotel around 2:30 a.m. on Saturday, Sept. 21.

He then allegedly carjacked her 2015 Toyota Corolla, drove it around the garage, and slammed it into a wall. A Statler security guard observed Mr. Candea behind the wheel of the wrecked vehicle and removed him from the car for his own safety.

Authorities discovered 27-year-old victim, identified in court documents as J.K., unconscious, with severe bruising and swelling to her face and head. She was transported to Baylor Hospital, where she lay in a coma for two days, and medical professionals documented nerve damage to her arms and legs as a result of the beating.

A criminal complaint is a formal accusation of criminal conduct, not evidence. Like all defendants, Mr. Candea is innocent unless and until proven guilty in a court of law.

If convicted, he faces a sentence of up to 25 years in federal prison. Magistrate Judge Irma C. Ramirez ordered the defendant detained pending trial.

The Federal Bureau of Investigation Dallas Field Office and Dallas Police Department conducted the investigation. Assistant U.S. Attorney Gary Tromblay is prosecuting the case.

 

Four additional individuals were charged in an indictment unsealed today in the Northern District of Texas for their role in a multi-million investment fraud scheme that targeted the elderly.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Erin Nealy Cox of the Northern District of Texas, and Inspector in Charge Delany DeLeon-Colón of the U.S. Postal Inspection Service’s Criminal Investigations Group in Washington, D.C., made the announcement.

Suzanne Aileen Gagnier, 65, of Huntington Beach, California; Joe Edward Duchinsky, 64, of Alhambra, California; Joseph Lucien Duplain, 78, of Murrieta, California; and Russell Filippo, 69, of Oklahoma City, Oklahoma, were each charged with one the count of conspiracy to commit mail and wire fraud and 10 counts of mail fraud.  Gagnier, Duchinsky, and Duplain were also charged with 10 counts of wire fraud, and Filippo was charged with eight counts of wire fraud.  Gagnier was arrested and appeared on Nov. 7, 2019, before U.S. Magistrate Judge Frederick F. Mumm of the Central District of California.  Duchinsky was also arrested and appeared on Nov. 7, 2019, before U.S. Magistrate Judge Autumn D. Spaeth of the Central District of California.  Filippo was also arrested and appeared on Nov. 7, 2019, before U.S. Magistrate Judge Gary M. Purcell of the Western District of Oklahoma.

The superseding indictment also includes previously indicted co-defendants Cengiz Jan “CJ” Comu, John Mervyn Price, Harley E. “Buddy” Barnes III, Richard Lawrence Green and Daniel Thomas Broyles Sr.  Comu, Price, Barnes, Green and Broyles are  charged with one count of conspiracy to commit mail and wire fraud.  In addition, Comu, Price, Barnes and Green are each charged with 10 counts of mail fraud and 10 counts of wire fraud.  This superseding indictment also adds charges against Comu, Price and Barnes for money laundering.  A trial date is currently set for March 30, 2020.

In addition, on Oct. 31, 2019, Donald Andrew Rothman, 72, of Coral Springs, Florida, who was not charged in the original indictment, pleaded guilty to one count of conspiracy to commit mail and wire fraud as charged in an information for his role in the scheme.  Rothman appeared before U.S. Magistrate Judge Rebecca Rutherford of the Northern District of Texas.  Sentencing has been scheduled for Feb. 26, 2020.

The superseding indictment alleges that, beginning in or around 2013 and continuing through in or around May 2019, the defendants participated in a scheme to defraud victims in the United States, the United Kingdom and Canada by fraudulently selling them stock in a company named EarthWater.  To induce victims to purchase EarthWater stock, the defendants falsely promised victims the opportunity to earn a high-rate of return in a short period of time by offering them stock at a low price on what they falsely claimed was the eve of EarthWater’s initial public offering (IPO).  In truth, EarthWater had no ability or actual plans to go public.  The defendants also repeatedly lied to victims about how their money would be used, telling victims that nearly all of their money would be reinvested in EarthWater’s business (including to launch the IPO).  In truth, the defendants stole most of the victims’ money and treated EarthWater’s accounts like their own personal piggybank.

The superseding indictment further alleges that the defendants targeted elderly victims and also selected victims whom they had swindled in the past and therefore believed to be more susceptible.  For example, when the defendants successfully defrauded a victim by selling them EarthWater stock, the defendants would repeatedly call that victim to sell them more shares. 

According to the superseding indictment, the defendants’ scheme lasted for more than five years and defrauded at least 300 victims of over $9.5 million.

An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. 

This case was investigated by the U.S. Postal Inspection Service.  Trial Attorneys Christopher Fenton, William Bowne, and Amanda R. Vaughn of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Mary F. Walters of the Northern District of Texas are prosecuting the case. 

The Criminal Division’s Fraud Section plays a pivotal role in the Department of Justice’s fight against white collar crime around the country.

Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website for more information.

A federal jury found a local drug dealer guilty of killing a Dallas teenager following an investigation by the FBI Dallas Field Office, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.

Following a four-day trial before U.S. District Judge Jane Boyle, a federal jury found Freddie Gilbert, 35, guilty of being a felon in possession of a firearm, possession with intent to distribute a controlled substance, discharging a firearm during a drug trafficking crime, and murder resulting from the use of a firearm in during a drug trafficking crime Thursday afternoon.

“Far too often, drug trafficking spurs horrific acts of violence,” said U.S. Attorney Nealy Cox. “In this case, a known cocaine dealer legally barred from possessing a weapon gunned down an innocent 19-year-old, then shoved her in the trunk like a piece of trash. We will not allow his crimes to go unpunished.”  

“The defendant in this case is a dangerous criminal that not only committed murder, but routinely committed acts of violence and sold large quantities of drugs,” said FBI Special Agent in Charge Matthew J. DeSarno of the Dallas Field Office. “The FBI will continue working with our law enforcement partners to eradicate drug-related violence and protect the well-being of the communities we serve.” 

According to evidence presented at trial, Mr. Gilbert, an avowed cocaine dealer, shot and killed 19-year-old Jacquisha Isaac on Oct. 29, 2017.

Forensic evidence showed that Mr. Gilbert shot Ms. Isaac through the head while she was sitting in the passenger seat of his car.  He likely fired the fatal shot through the window, while standing outside the vehicle, then stashed her body in the trunk and took off, prosecutors said.

Hours later, Mr. Gilbert was apprehended driving more than 110 mph down I-20.  

Investigators identified Ms. Isaac’s blood inside the car, as well as on the clothing Mr. Gilbert was wearing when he was apprehended and on the revolver he used to kill the young girl.

They also discovered a bullet he had purchased the day before covered in Ms. Isaac’s blood on the floorboard, gun residue on Mr. Gilbert’s hands, and his palm print on the trunk of the car where he’d stashed her body.

Mr. Gilbert faces up to life in federal prison.

The Federal Bureau of Investigation, Texas Department of Public Safety, Bureau of Alcohol, Tobacco, Firearms & Explosives, Drug Enforcement Administration, and Kaufman County Sheriff’s Office investigated the case. Assistant U.S. Attorneys P.J. Meitl and Tiffany Eggers prosecuted the case.

 

SENTENCING - Erick Dewayne Freeman and Kendrick Lamel Washington

On October 25, Erick Dewayne Freeman, 44, and Kendrick Lamel Washington, 40, were each sentenced to 30 years in federal custody for the crimes of possession with the intent to distribute heroin and possession of a firearm in furtherance of a drug trafficking crime. The defendants were involved in the Han Gil Hotel case. Freeman and Washington worked together to instill fear in customers to the “trap” rooms they managed in the hotel. Click here if you would like to learn more about their sentencing and the Han Gil case. This investigation was led by the Drug Enforcement Administration and the case was prosecuted by AUSA Rick Calvert and AUSA Phelesa Guy.   

SENTENCING – Montrey Jerod Green

On October 28, Montrey Jerod Green, 27, was sentenced to 8 years in federal custody for the crime of possession of methamphetamine with the intent to distribute. In October of 2017, Green was paid $1,900 to deliver a 110 gram bag of methamphetamine and .45 caliber firearm to another individual.  This case was investigated by the Texas Department of Public Safety and the City of Carrollton Police Department and prosecuted by AUSA George Leal.

GUILTY PLEA – Sherman Lakeith Ross

On October 31, Sherman Lakeith Ross, 45, pled guilty to possession with the intent to distribute heroin and aiding and abetting. Ross and his coconspirators used cell phones to communicate about their drug enterprise, and these communications were intercepted by the police. Law enforcement seized the drugs distributed from multiple customers, and after confirming that it was heroin, arrested Ross while he was in his probation officer’s office. Ross faces up to 20 years in federal prison. This case was investigated by the Drug Enforcement Administration and prosecuted by AUSA John Kull. 

SENTENCING – Shawnetta Laruth Jones

Shawnetta Laruth Jones was sentenced to 5 years in federal prison for the crime of aiding and abetting a felon in possession of a firearm. Jones acted a straw-purchaser at a pawnshop in Mesquite after the owner refused to sell to her coconspirator for being a convicted felon. Jones knew the coconspirator because she had previously served as his parole officer. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the DeSoto Police Deparment and prosecuted by AUSA Walt Junker.

The Justice Department announced today the formation of the new Procurement Collusion Strike Force (PCSF) focusing on deterring, detecting, investigating and prosecuting antitrust crimes, such as bid-rigging conspiracies and related fraudulent schemes, which undermine competition in government procurement, grant and program funding.

At a press conference today at the Department of Justice in Washington, D.C., Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division explained that the PCSF will be an interagency partnership consisting of prosecutors from the Antitrust Division, prosecutors from 13 U.S. Attorneys’ Offices, including the U.S. Attorney’s Office for the Northern District of Texas, and investigators from the FBI, the Department of Defense Office of Inspector General, the U.S. Postal Service Office of Inspector General and other partner federal Offices of Inspector General.

Deputy Attorney General Jeffrey A. Rosen expressed the Department’s support for the initiative. “To protect taxpayer dollars, the Justice Department is doing its part to eliminate anticompetitive collusion, waste and abuse from government procurement,” said Deputy Attorney General Rosen.  “To ensure taxpayers the full benefits of competitive bidding, experienced investigators and prosecutors with the necessary expertise will partner in this Strike Force to deter, detect and prosecute antitrust crimes and related schemes in government procurements.”

“The investigation and prosecution of individuals and organizations that cheat, collude and seek to undermine the integrity of government procurement are priorities for this administration,” said Assistant Attorney General Makan Delrahim.  “The PCSF will train and educate procurement officials nationwide to recognize and report suspicious conduct in procurement, grant and program funding processes.  We will aggressively investigate and prosecute those who violate our antitrust laws to cheat the American taxpayer.”

“Protecting the American taxpayer is a vital function of the Justice Department,” said U.S. Attorney for the Northern District of Texas Erin Nealy Cox. “The Strike Force is committed to ensuring that the procurement process is competitive and fair.”  

The PCSF will lead a national effort to protect taxpayer-funded projects at the federal, state and local level from antitrust violations and related crimes, starting with a focus on 13 districts throughout the country.  Prosecutors from the Antitrust Division and the participating U.S. Attorneys’ Offices, along with agents from the FBI and partner Offices of Inspector General, will work together to conduct outreach and training for procurement officials and government contractors on antitrust risks in the procurement process.  In addition, the partnered prosecutors and investigators will jointly investigate and prosecute cases that result from their targeted outreach efforts.

“Inspectors General throughout the federal government have a long history of rooting out waste, fraud and abuse in government contracting,” said Michael E. Horowitz, Inspector General of the Department of Justice and Chair of the Council of Inspectors General on Integrity and Efficiency.  “We welcome the opportunity to contribute our expertise to the important work of the Procurement Collusion Strike Force.  We look forward to partnering with the other participating members of the law enforcement community to hold accountable actors who seek to defraud the government and cheat taxpayers.”

“The FBI has a long history of working with our interagency and law enforcement partners to investigate public procurement crimes and ensure justice,” said FBI Criminal Intelligence Division Assistant Director Terry Wade.  “We are committed to working closely with our DOJ colleagues and our federal, state and local partners as we continue to successfully combat these crimes.”

“Individuals and companies that participate in procurement collusion cause significant harm and losses to the Department of Defense and to American taxpayers,” said Glenn A. Fine, Principal Deputy Inspector General of the Department of Defense Office of Inspector General.  “The DoD Office of Inspector General, and our criminal investigative component, the Defense Criminal Investigative Service, are committed to aggressively investigating those individuals and companies who would attempt to compromise government procurement processes.”

The Antitrust Division and its law enforcement partners have a history of prosecuting criminal antitrust conspiracies that take advantage of government contracts.  In late 2018 and early 2019, for instance, five South Korean oil companies agreed to plead guilty for their involvement in a decade-long bid-rigging conspiracy that targeted contracts to supply fuel to U.S. military bases in South Korea.  The Antitrust Division also indicted seven individuals for conspiring to rig bids and to defraud the government, and one executive was also charged with obstruction of justice.  In total, the companies have agreed to pay $156 million in criminal fines and over $205 million in separate civil settlements.  This year, the Justice Department, in partnership with the GSA Office of Inspector General, also indicted individuals for involvement in rigging bids submitted to the GSA.

The PCSF’s 13 U.S. Attorney partners include:

- Nicola T. Hanna, Central District of California
- McGregor Scott, Eastern District of California
- Jason R. Dunn, District of Colorado
- Jessie K. Liu, District of Columbia
- Ariana Fajardo Orshan, Southern District of Florida
- Byung J. “BJay” Pak, Northern District of Georgia
- John R. Lausch, Jr., Northern District of Illinois
- Matthew Schneider, Eastern District of Michigan
- Geoffrey S. Berman, Southern District of New York
- David M. DeVillers, Southern District of Ohio
- William M. McSwain, Eastern District of Pennsylvania
- Erin Nealy Cox, Northern District of Texas
- G. Zachary Terwilliger, Eastern District of Virginia

The PCSF’s investigative partners include:

- Department of Defense Office of Inspector General
- Federal Bureau of Investigation
- General Services Administration Office of Inspector General
- Department of Justice Office of the Inspector General
- U.S. Postal Service Office of Inspector General

The PCSF has launched a publicly available website at https://www.justice.gov/procurement-collusion-strike-force, where government procurement officials and members of the public can review information about the federal antitrust laws and training programs, and report suspected criminal activity affecting public procurement.

Individuals and companies are encouraged to contact the PCSF if they have information concerning anticompetitive conduct involving federal taxpayer dollars by emailing pcsf@usdoj.gov.

An eighth defendant in the Reagor Dykes Auto Group fraud case has pleaded guilty, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.

Brad William Fansler, 41, an RDAG Group Administrative Director, pleaded guilty to conspiracy to commit wire fraud before Magistrate Jude Lee Ann Reno in Amarillo Monday morning.

In plea papers, Mr. Fansler admitted that the auto group routinely sold vehicles “out of trust” – meaning that they failed to repay lenders within seven days of selling the vehicle financed by that lender.

Just before the lender conducted audits, Mr. Fansler admitted, the auto group would create what they called “dummy shucks,” falsifying vehicles sales dates on official paperwork to make it appear as though the vehicle had sold within the prior seven days and was not yet out of trust.

In order to make payments following these audits, the auto group would then engage in a process they called “dummy flooring,” digging through records for vehicle identification numbers (VIN) of cars Reagor Dykes had already sold, then submitting new loan applications to lenders using the old VINs – falsely indicating that the company was seeking a floor plan loan in order to repurchase the vehicle for resale. After acquiring new funding, instead of purchasing the cars, the company would use the money to pay off the old loans.  

Eventually, Mr. Fansler acknowledged, dealers ran out of VINs to re-floor, and began using cars pledged as collateral to other lenders, a process they dubbed “double flooring.”

Mr. Fansler is the eighth defendant to admit involvement in the $50 million scheme. Admitted coconspirators include Reagor Dykes Chief Financial Officer Shane Andrew Smith and employees Sheila Miller, Lindsay Williams, Diana Urias, Paige Johnston, Pepper Rickman, and Sherri Lynn Wood.

Mr. Fansler faces up to five years in prison and may be required to pay at least $27 million in restitution.  

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

In the first federal criminal trial in Wichita Falls in more than eight years, a drug dealer has been convicted of a marijuana conspiracy, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.

Chad Anthony Ray, 31, of Wichita Falls, was indicted in July 2019 for conspiring to distribute marijuana along with six codefendants.

A jury convicted Mr. Ray late last week following a day-long trial before U.S. District Judge Reed C. O’Connor, who traveled from Fort Worth to Wichita Falls to preside over the proceedings.

According to evidence presented at trial, Mr. Ray’s coconspirators shipped marijuana through the U.S. mail from Oregon to Wichita Falls. Over an 18-month period (March 2015 to September 2016), they shipped approximately 1,100 pounds of marijuana in 443 Priority Mail parcels to Wichita Falls and surrounding cities, including Henrietta and Iowa Park.

Other conspirators received the parcels of marijuana – shipped in Priority Mail boxes so that the defendants could track the packages – then repackaged it, sold it, and returned the proceeds to the suppliers in Oregon.

“The U.S. Attorney’s Office is adamant about prosecuting  illicit substances shipped through the U.S. Mail to the Northern District of Texas,” said U.S. Attorney Erin Nealy Cox. “We will not allow criminals to harm the community by exploiting the Postal Service.”

At trial, prosecutors showed that Mr. Ray personally received 29 packages of marijuana directly to his residence on Collins Avenue in Wichita Falls, collected money for marijuana sales, and tracked packages shipped to other addresses using the USPS tracking number.

He now faces up to 20 years in federal prison.

Five of his codefendants – Randall Dizon, Jonathan Michael Fernandez, Jarrett Devon Grant, Ronald Vance Latimer, and Justin Kent Reed – pleaded guilty before trial.  The sixth, Dustin Weaver, remains a fugitive.

The case was investigated by the U.S. Postal Inspection Service, the Wichita Falls Police Department, and the Texas Department of Public Safety. Assistant U.S. Attorney Mary Walters and Joseph Magliolo prosecuted the case.

 

By Presidential Proclamation, October is Domestic Violence Awareness Month. 

Ending domestic violence – a heinous crime that terrorizes families, shatters homes, and destroys lives – is a top priority for the U.S. Department of Justice. Over the past 30 days, the U.S. Attorney’s Office for the Northern District has reaffirmed its steadfast commitment to empowering survivors and fighting this horrible form of abuse. 

We understand that domestic violence is a pervasive problem in Texas – and far too often, abuse escalates from bruises to bloodshed and tragically, loss of life. At least 175 women and 36 men were murdered by an intimate partner in Texas last year, according to the Texas Council on Family Violence. Roughly 60% of the abusers who killed their partners wielded a gun.  

In an effort to prevent these tragic homicides, we’ve reached out to state and local law enforcement alerting them that federal firearm laws can be used to prosecute abusers – often without the testimony of victims, who, for obvious reasons, may be reluctant to testify in a court proceeding against their abuser. 

The pertinent federal domestic violence crimes fall into two broad categories: 

• Crimes under the Gun Control Act, which prevents prohibited persons – including convicted felons, individuals previously convicted of misdemeanor domestic violence offenses, and individuals subject to certain protective orders—from possessing firearms, or from lying to firearms dealers about their status
• Crimes under the Violence Against Women Act, which prohibits interstate stalking, cyber stalking, and using interstate commerce to commit domestic violence or violate protective orders 

The U.S. Attorney’s Office has created a comprehensive brochure summarizing the federal statutes that may be charged in the domestic violence context, available at https://www.justice.gov/USAO-NDTX/DV. 

The Northern District of Texas’ Domestic Violence  Initiative Team – Assistant U.S. Attorneys Keith Robinson (Chief of NDTX’s Violent Crimes Section), Damien Diggs, and John Boyle, along with agents from ATF’s Dallas Field Division – have held information sessions for local District Attorney’s Offices; federal, state, local, and county law enforcement; and state judges to maximize referral of these cases to federal prosecutors. 

As with all issues of public safety, while we will make as many arrests as we can consistent with the interests of justice, we recognize that enforcement alone will not solve the problem. So, we’re also working closely with our partners in the prevention, education and survivor support communities, like Genesis Women’s Shelter, The Family Place, and others. Earlier this month, we were proud to host the Justice Department’s Office of Violence Against Women, which awarded $16.5 million to support local law enforcement, victim service providers, and shelters fighting domestic and sexual violence in north Texas. 

Moreover, U.S. Attorney for the Northern District of Texas Erin Nealy Cox was recently appointed by Attorney General William Barr to lead the Domestic Violence Working Group of the U.S. Attorney General’s Advisory Committee. This group serves to advise the Attorney General and federal law enforcement partners nationwide as to how the USAO community can effectively marshal federal resources to combat domestic violence.  She is honored to stand with dedicated U.S. Attorney’s across the country in the fight against domestic violence, and recently spoke at a Domestic Violence Conference hosted by U.S. Attorney for the Northern District of Ohio Justin Herdman.

“As Texans and Americans, we must remain vigilant in our quest to end domestic abuse and promote peace and safety in the home,” says the U.S. Attorney. “While we must recognize and face head-on the existence and tragedy of domestic violence, we should also take heart in knowing that combatting and preventing this crime are top priorities of law enforcement at all levels, and that stakeholders are working closely across disciplines to bring a stop to it.”  

GUILTY PLEA – Rasheeda Chester

On October 22, Rasheeda Chester, 20, pled guilty to possession with the intent to distribute marijuana. Chester and her coconspirators transported 128 pounds of marijuana sealed in vacuum bags from San Francisco International Airport to Dallas Love Field Airport. Chester was also found to be in the possession of $5,280 that constituted the proceeds of illegal drug trafficking. She faces up to 5 years in federal custody. This case was investigated by the Dallas Police Department and the Federal Bureau of Investigation and is prosecuted by AUSA Rebekah Ricketts.

GUILTY PLEA – Alma Jean Gilbert

On October 22, Alma Jean Gilbert, 52, pled guilty to 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. For five years, Gilbert and her employees falsified credits and deductions on customers’ tax returns, on some occasions up to an $11,000 value. Gilbert faces up to 6 years in federal custody. This case was investigated by the Internal Revenue Service – Criminal Investigations and is prosecuted by AUSA Christopher Stokes.   

GUILTY PLEA – Ira Marsh

On October 22, Ira Marsh, 42, pled guilty to possession with the intent to distribute marijuana and possession of a firearm by a convicted felon. Dallas Police Department officers stopped Marsh’s car for temporary tags that belonged to another vehicle. Officers smelled marijuana and saw a green leafy substance in plain view. After searching the car, officers found more marijuana and a pistol, despite Marsh’s previous imprisonment for a sentence of over 1 year. Marsh faces up to 12 years in federal custody. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Dallas Police Department and is prosecuted by AUSA Damien Diggs.

SENTENCING – Armando Avitia

On October 21, Armando Avitia, was sentenced to 9 years and 2 months in federal custody for possession of heroin with the intent to distribute. Grand Prairie Police Department Narcotics detectives pulled over a vehicle after smelling marijuana, which the passengers confirmed purchasing from Avitia’s residence. While executing a search warrant at the residence, officers seized heroin, methamphetamine, cocaine, marijuana and several firearms. This case was investigated by the Grand Prairie Police Department and the Drug Enforcement Administration and was prosecuted by AUSA Myria Boehm.

SENTENCING – Craig Demond Campbell

On October 21, Craig Demond Campbell was sentenced to 3 years and 1 month in federal custody for stealing firearms from a federal firearm licensee. Campbell and his coconspirators drove to Alvarado to rob Crazy Gun Dealer store. They cut a hole in the side of the store, stole 17 firearms, and transported them back to an apartment in Dallas. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and was prosecuted by AUSA Kenneth Coffin.

SENTENCING – Rodney Antwon Lewis

On October 23, Rodney Antwon Lewis, 34, was sentenced to 17 years in federal custody for the crimes of interference with commerce by robbery and brandishing a firearm in furtherance of a crime of violence.  Lewis committed a series of robberies over the years at Family Dollar Stores, a Jack in the Box, a Schlotzky’s, and a KFC. In most instances, Lewis would purchase a small item with cash. When the clerk opened the register, Lewis would threatened them with a revolver hidden in his pants. This case was investigated by the Federal Bureau of Investigation and was prosecuted by AUSA Shane Read.

The former Acting Police Chief of Olney, Texas has pleaded guilty to threatening an individual at gunpoint following an investigation by the FBI Dallas Field Office, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.

Former Acting Chief Robert Michael Cross, 35, pleaded guilty on Tuesday to deprivation of rights under color of law before U.S. District Judge Reed C. O’Connor. 

“This was a despicable abuse of power,” said U.S. Attorney Erin Nealy Cox. “The public should be assured that we will not hesitate to hold the defendant accountable.”    

In plea papers, Mr. Cross admitted that shortly after arresting two individuals for aggravated robbery offenses, he coerced them into engaging in conduct for his own personal benefit, promising to have the criminal cases against them dismissed if they complied with his demands.

About a month after the arrest, on Dec. 20, 2017, he took them out in his vehicle to eat dinner and catch a movie. That evening, he brandish a pistol, threatening one of the individuals with bodily injury and willfully depriving him of the Constitutional right to be free from unreasonable force by a law enforcement officer.

Mr. Cross now faces up to 10 years in federal prison. Sentencing is set for March 9, 2020.

The Federal Bureau of Investigation’s Dallas Field Office and the Texas Rangers conducted the investigation. Assistant U.S. Attorney Robert Boudreau is prosecuting the case.

The former Acting Police Chief of Olney, Texas has pleaded guilty to threatening an individual at gunpoint following an investigation by the FBI Dallas Field Office, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.

Former Acting Chief Robert Michael Cross, 35, pleaded guilty on Tuesday to deprivation of rights under color of law before U.S. District Judge Reed C. O’Connor. 

“This was a despicable abuse of power,” said U.S. Attorney Erin Nealy Cox. “The public should be assured that we will not hesitate to hold the defendant accountable.”    

In plea papers, Mr. Cross admitted that shortly after arresting two individuals for aggravated robbery offenses, he coerced them into engaging in conduct for his own personal benefit, promising to have the criminal cases against them dismissed if they complied with his demands.

About a month after the arrest, on Dec. 20, 2017, he took them out in his vehicle to eat dinner and catch a movie. That evening, he brandish a pistol, threatening one of the individuals with bodily injury and willfully depriving him of the Constitutional right to be free from unreasonable force by a law enforcement officer.

Mr. Cross now faces up to 10 years in federal prison. Sentencing is set for March 9, 2020.

The Federal Bureau of Investigation’s Dallas Field Office and the Texas Rangers conducted the investigation. Assistant U.S. Attorney Robert Boudreau is prosecuting the case.

Two Reagor Dykes Auto Group employees pleaded guilty today for their role in the auto group’s floor plan fraud scheme, following an investigation by the Federal Bureau of Investigation’s Dallas Field Office, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.

Pepper Laray Rickman, 47, and Sherri Lynn Wood, 53, plead guilty to conspiracy to commit wire fraud before Magistrate Jude Lee Ann Reno in Amarillo Friday morning.

Rickman and Wood are two of seven employees who have confirmed their role in the $50 million Reagor Dykes fraud. Admitted coconspirators include Reagor Dykes Chief Financial Officer Shane Andrew Smith and employees Sheila Miller, Lindsay Williams, Diana Urias, and Paige Johnston.

In plea papers, Rickman, accounting controller at Reagor Dykes Plainview LP (a Toyota store in Plainview, Texas), and Wood, office manager at the Reagor Dykes Auto Company LP (a Ford store in Plainview), admitted the auto group participated in a fraudulent floor plan fraud scheme. 

In a practice accounting staff dubbed “dummy flooring,” “fake flooring,” or “re-flooring,” employees dug through records for vehicle identification numbers (VIN) of cars Reagor Dykes had already sold, then submitted new loan applications to Ford Motor Credit Company using the old VINs – falsely indicating that the company was seeking a loan in order to repurchase the vehicle for resale, Rickman and Wood said in plea papers. After acquiring the new floor plan funding, instead of re-buying the car, Reagor Dykes used the ensuing loan to cover other expenses.

The company’s accounting staff submitted the false information via interstate wire communication, the defendants admitted.

Rickman and Wood each face up to five years in federal prison and may be required to pay at least $27 million in restitution.  

The Federal Bureau of Investigation and Internal Revenue Services - Criminal Investigation Division conducted the investigation.  Assistant U.S. Attorneys Joshua Frausto, Jeffrey Haag, and Sean Taylor are prosecuting the case.

The lead defendant in the Han Gil Hotel criminal case has been sentenced to 30 years in federal prison on drug and gun charges, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox. 

Eric Dewayne Freeman, aka “Stuff,” pleaded guilty in June to conspiracy to possess with the intent to distribute heroin, possession of a firearm in furtherance of a drug trafficking crime, and possession of a firearm by a felon. Freeman was sentenced Friday afternoon before U.S. District Judge Karen Gren Scholer alongside coconspirator Kendrick Lamel Washington, aka “Kiki,” who pleaded guilty in May to conspiracy to possess with the intent to distribute heroin and possession of a firearm in furtherance of a drug trafficking crime. Washington was also sentenced to 30 years in federal prison. 

Freeman, 44, and Washington, 40, are two of fifteen defendants who have pleaded guilty in the Han Gil Hotel Town case, which has so far resulted in charges against 22 individuals and one corporation associated with the notoriously dangerous hotel. 

“In the seven months since the feds shuttered the Han Gil, defendants have confirmed what we already knew from our investigation – that the hotel was a haven for drug dealers, human traffickers, and violent criminals,” said U.S. Attorney Nealy Cox. “Two of the Han Gil’s most notorious dealers will spend decades behind bars, where they can no longer peddle the substances that have already shattered so many lives.” 

“The DEA will pursue investigations, much like the Han Gil Hotel case, until these places are extinct,” said DEA Special Agent in Charge of the Dallas Division Clyde E. Shelley, Jr.

In plea papers, Freeman and Washington both admitted that they and other dealers routinely used so-called “trap rooms” within the Han Gil Hotel to peddle and distribute heroin, methamphetamine and crack cocaine to numerous customers.  Users often smoked or injected the drugs on hotel premises, which lay within 1000 feet of Dallas’ Herbert Marcus Elementary School. 

Washington admitted that he acted as Freeman’s enforcer, using tactics “designed to instill fear” in individuals Freeman believed had stolen from him or owed him money. In December 2018, Washington used a cell phone to record Freeman torturing a young woman with a butane torch, then showed the video to numerous people inside the hotel.  

Freeman, meanwhile, admitted that multiple drug overdoses occurred in Han Gil Hotel rooms during the time the conspiracy was ongoing. The bodies of some of those victims were removed from the hotel and dumped elsewhere.  DEA agents discovered the corpse of a twenty year-old female victim who died in December 2018 decomposing in Boren-Hilseweck Park in Oak Cliff almost a month after Freeman and two others carried her body out of the hotel.  Law enforcement agents in Coppell, Texas also tied the heroin overdose deaths of two Coppell residents that died in June and July 2018 back to the Han Gil Hotel.  

Freeman also admitted the owner of the Han Gil Hotel, codefendant Su Y. Amos Mun, was aware that multiple armed drug dealers were using the hotel to distribute drugs to hundreds of customers. He said Mun charged dealers an inflated room rate, dubbed a “drug tax,” in exchange for allowing them to openly deal out of trap rooms. Mun collected thousands of dollars from Freeman alone, and often tipped off dealers before law enforcement or city officials arrived for inspections, Freeman said in his plea papers. 

Mun, 64, pleaded guilty in August to maintaining a drug involved premises, admitting that for more than a year, he profited off dealers openly selling quantities of heroin, methamphetamine, cocaine and other drugs from inside his hotel rooms. 

As part of his plea agreement, Mun agreed to forfeit the Han Gil Hotel, which is also the subject of a civil action filed by the U.S. Attorney’s Office alleging the site functioned as a “safe haven for drug distributors” and a “breeding ground for escalating criminal activity.”  

The hotel has been shuttered since March 8, when a federal judge granted prosecutors’ motion for a restraining order prohibiting the hotel’s further operation and a task force of more than 50 agents and officers, accompanied by several attorneys, converged on the Han Gil to effect arrests, execute search warrants, and post notices requiring the immediate clearing of the premises.  

The Drug Enforcement Administration conducted the investigation with assistance from the Federal Bureau of Investigation, Coppell Police Department, Dallas Police Department, the Bureau of Alcohol, Tobacco, Firearms & Explosives, the U.S. Marshal’s Service, Grand Prairie Police Department, Arlington Police Department, Grapevine Police Department, Lancaster Police Department, the State Department, IRS, U.S. Postal Inspection Service, Plano Police Department, Farmers Branch Police Department, Homeland Security Investigations, Garland Police Department, Rowlett Police Department, Denton Police Department, Lewisville Police Department and McKinney Police Department.  Assistant U.S. Attorneys Scott Hogan, NDTX Civil Chief, Lindsey Beran, NDTX Deputy Civil Chief, and Braden Civins filed the civil motion. Assistant U.S. Attorneys Rick Calvert, Chief of NDTX’s Narcotics Section, and Phelesa Guy, Deputy Chief of the Narcotics Section, are prosecuting the criminal case. 

GUILTY PLEA – Neftali Abonza

On October 15, Neftali Abonza, 30, pled guilty to conspiracy to commit money laundering. Abonza and his codefendants were involved in a conspiracy to distribute methamphetamine in both Texas and Florida. The coconspirators would smuggle cash in bulk and use bank funnel accounts to profit from the proceeds. Abonza was arrested when attempting to deliver two kilograms of methamphetamine. He faces up to 20 years in federal custody. This case was investigated by the Drug Enforcement Administration and is prosecuted by AUSA Myra Boehm.

 

SENTENCING – Aldo Villanueva

On October 16, Aldo Villanueva, 31, was sentenced to 2 years and 6 months in federal custody for using a communication facility to facilitate a drug felony. Villanueva pled guilty to using a cell phone to coordinate the sale of cocaine in Dallas. He used coded communications with his coconspirators to negotiate drug prices and quantities. This case was investigated by the Drug Enforcement Administration – Strike Force One and was prosecuted by AUSA John Kull.

 

GUILTY PLEA – Celso Alfonso Morales-Reyes

On October 15, Celso Alfonso Morales-Reyes, 25, pled guilty to possession with the intent to distribute methamphetamine. Morales-Reyes was pulled over for a traffic violation and arrested for failure to have a driver’s license. Dallas Police Department officers searched his car, and found a kilogram of heroin. The Drug Enforcement Agency Strike Force later searched his home with the consent of his paramour, who was sharing the apartment, and found additional kilograms of methamphetamine and heroin. Morales-Reyes faces up to 20 years in federal custody. This case was investigated by the Drug Enforcement Administration and is prosecuted by AUSA Myria Boehm.

 

GUILTY PLEA – Garibaldi Gutierrez Solorio

On October 17, Garibaldi Gutierrez Solorio, 25, pled guilty to possession with the intent to distribute heroin. In June 2019, federal agents executed a search warrant of a residence, where they found 3 kilograms of heroin, 3 pounds of marijuana, and detained Gutierrez. The defendant told agents that he was instructed to store and deliver the heroin at the instruction of a subject in Mexico. Gutierrez faces up to 20 years in federal custody. This case was investigated by ­­­­­­­­­­­the Drug Enforcement Administration and is prosecuted by AUSA Suzanna Etessam.

 

SENTENCING – Levar Charles Walker

On October 17, Levar Charles Walker, 40, was sentenced to 3 years in federal custody for the crime of using a communications facility to facilitate a drug felony. Walker used a cell phone to communicate with his codefendant and a Drug Enforcement Administration cooperating defendant to discuss the distribution of a half-kilogram of cocaine. This case was investigated by the Drug Enforcement Administration and was prosecuted by AUSA Suzanna Etessam.

A 39-year-old Mexican national with an extensive criminal history has been ordered to serve 10 years in federal prison for illegal reentry after deportation following an investigation by the Department of Homeland Security, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.

Antonio Serrano-Perez, of Tamaulipas, Mexico, was sentenced Friday morning before Senior U.S. District Judge John H. McBryde, who handed down the statutory maximum sentence based in part on the defendant’s lengthy criminal history.

Mr. Serrano-Perez pleaded guilty in May 2019 to illegal reentry after being deported at least five times, the judge noted, adding that after every removal, he came back into the United States illegally, only to commit crimes including cocaine trafficking and family violence.  

“This felon and narcotics trafficker has been deported to Mexico five times, and has repeatedly demonstrated that he has no respect for U.S. laws,” said Marc J. Moore, field office director of the ICE Dallas office.  “Throughout his extensive criminal career, he has operated as though the United States is simply a profitable location for him to traffic in illegal drugs.  After he fully completes his latest federal prison sentence for illegally re-entering the United States, our ICE officers will deport him a sixth time.”

Mr. Serrano-Perez was first removed to Mexico in October 1998, then reentered the United States at least five times over a 20-year period.  During that time, the judge observed, Mr. Serrano-Perez racked up numerous state drug and violent crime convictions as well as three federal immigration convictions.

Following an illegal reentry in 2006, at age 25, he was convicted of a federal immigration offense in the Southern District of Texas, sentenced to 27 months in prison, and then removed to Mexico in 2014.  At some point after that removal, he returned to Fort Worth, where he was apprehended on March 11, 2019 outside his residence by immigration authorities.

After serving his 10-year sentence, Mr. Serrano-Perez will once again face deportation proceedings.

U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations, Violent Criminal Alien Section and ICE Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Levi Thomas is prosecuting the case.  

 

A former Dallas Police Officer pleaded guilty today to falsifying traffic citations in order to collect overtime pay, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.

Following an investigation by the Dallas Police Department, Mathew Alan Rushing, 35, pleaded guilty to one count of false statements before Magistrate Judge David Horan Tuesday morning.

According to his plea papers, Mr. Rushing submitted at least 38 fraudulent “Officer’s Daily Grant Activity Reports,” which included citations for fictitious persons and events, over a nine month period from 2018 to 2019.

After Mr. Rushing concluded a traffic stop, he admitted, he sometimes altered the violator’s true identity by changing their name or date of birth, causing arrest warrants to be issued for drivers who didn’t exist. Other times, he admitted, he citied drivers for nonexistent violations after they departed the scene of the incident.

Mr. Rushing admitted he submitted these report with the intention of collecting overtime pay funded by federal grants from the National Highway Traffic Safety Administration (NHTSA) through a program administered by the Texas Department of Transportation and the Dallas Police Department.

Mr. Rushing now faces up to five years in federal prison. Sentencing is set for March 2020.

The Dallas Police Department, Federal Bureau of Investigation Dallas Field Office, and Department of Transportation Office of Inspector General conducted the investigation. Assistant U.S. Attorneys David Jarvis and Andrew Wirmani are prosecuting the case.

GUILTY PLEA – Jose Sanchez

On October 8, Jose Sanchez pled guilty to conspiracy to possess with the intent to distribute cocaine and conspiracy to launder monetary instruments. Sanchez was apprehended by the police and found with 14 kilograms of cocaine, after receiving it from a coconspirator in the parking lot of a Denny’s. Additionally, Sanchez and his coconspirators sent the proceeds from this and other sales of methamphetamine back to Mexico. This case was investigated by the Drug Enforcement Administration and is prosecuted by AUSA George Leal.

 

GUILTY PLEA – Terry Holley

On October 8, Terry Holley pled guilty to receipt of illegal remuneration. From August 2014 to September 2017, Holley solicited payments in return for providing the personal information of health care patients to a company. The information included doctor’s notes, prescription information, and billing information. Additionally, Holley would forge prescriptions to be sent to the Department of Labor for reimbursement. In return, Holley received payment in cash and a percentage of the corporation’s earnings. This case was investigated by the Office of the Inspector General and is prosecuted by AUSA Jennifer Bray.

 

GUILTY PLEA – Otis DeWayne McMillan

On October 10, Otis DeWayne McMillan pled guilty to conspiracy to distribute and possess with the intent to distribute marijuana. McMillan flew to Dallas Love Field Airport with his coconspirators and 128.5 pounds of marijuana in a total of ten suitcases. This case is prosecuted by AUSA Rebekah Ricketts.

 

SENTENCING – Juan Johnson

On October 7, Juan Johnson, 43, was sentenced to 1 year and 9 months in federal custody for conspiracy to pass and utter counterfeit currency. Johnson and his coconspirators obtained counterfeit Federal Reserve Notes, and then traveled to stores in the Northern District of Texas to purchase merchandise and gift cards using these counterfeit Federal Reserve Notes. This case was investigated by ­­­­­­­­­­­­the U.S. Secret Service and was prosecuted by AUSA Jay Weimer.

 

SENTENCING – Manuel Pena

On October 7, Manuel Pena, 27, was sentenced to 12 years in federal custody for the possession of a controlled substance with the intent to distribute. Pena was found in possession of a kilogram of methamphetamine in March of 2019. This case was investigated by the Drug Enforcement Administration High Intensity Drug Trafficking Areas and the Fort Worth Police Department Narcotics. This case was prosecuted by AUSA Shawn Smith.

 

SENTENCING – Don Wright

On October 7, Don Wright, 40, was sentenced to 3 months in federal custody and ordered to pay $81,405 in restitution for conspiracy to defraud the United States. Wright was a member of the Texas Army National Guard, and used his position to steal fleet cards that are intended to purchase fuel and maintenance for government vehicles. Wright, and his coconspirator used these cards for the upkeep of their own vehicles and replicated these cards to be sold and shared with others. This case was investigated by the General Services Administration Office of Inspector General and the Department of Defense Office of Inspector General. This case was prosecuted by AUSA Robert Boudreau.

The President of EarthWater Limited, a Dallas-based company, was charged in an indictment with obstructing justice in connection with an ongoing federal investigation. 

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Erin Nealy Cox of the Northern District of Texas and Inspector in Charge Delany DeLeon-Colón of the U.S. Postal Inspection Service’s (USPIS) Criminal Investigations Group in Washington, D.C., made the announcement.

Beth Ellen DeGroot, 59, of Plano, Texas, was arrested and appeared today before U.S. Magistrate Judge Renee H. Toliver of the Northern District of Texas.  DeGroot was charged with two counts of obstruction of justice.    

Harley E. Barnes III, aka Buddy Barnes, and five other individuals had been previously indicted by a Dallas grand jury for their alleged roles in a high-yield investment fraud scheme involving EarthWater.  EarthWater manufactured and sold bottled water that it claimed was infused with special minerals mined from an 80-million-year-old deposit hidden in a secret location.  Barnes was EarthWater’s Chief Financial Officer.   

According to the indictment, DeGroot was EarthWater’s Vice President.  Following Barnes’ arrest, DeGroot was promoted to President and partnered with Barnes to continue to use EarthWater to raise money, including by selling stock.  The indictment alleges that, as part of an ongoing investigation, DeGroot was served with a subpoena for documents.  The indictment further alleges that, in response to the subpoena, DeGroot corruptly concealed the existence of certain emails and other communications relating to Barnes and DeGroot’s plan to sell EarthWater securities by, among other things, altering a document to deliver to the federal grand jury.  Allegedly, DeGroot corruptly attempted to obstruct, influence and impede the ongoing investigation by misleading the grand jury and federal law enforcement about her receipt of funds from Barnes.  DeGroot falsely claimed she had not received any money from Barnes when, according to the indictment, she had.

An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. 

USPIS investigated the case.  Trial Attorneys Christopher Fenton and William Bowne of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Mary F. Walters of the Northern District of Texas are prosecuting the case.