Northern District of Texas

WASHINGTON – Reliant Rehabilitation Holdings Inc. (Reliant), a national provider of rehabilitation therapy and related services headquartered in Plano, Texas, has agreed to pay the United States $6.1 million to resolve allegations that it violated the False Claims Act (FCA), 31 U.S.C. §3729, et seq., by paying kickbacks to skilled nursing facilities and physicians in connection with care provided to Medicare beneficiaries as a way of improperly promoting Reliant’s rehabilitation therapy business, the Justice Department announced today. 

The United States alleged that between April 1, 2013, and May 1, 2017, Reliant knowingly offered improper inducements, in the form of Reliant-employed nurse practitioners who worked at client nursing homes without charge or for a nominal, below fair market fee in order to induce or reward nursing homes for contracting with Reliant to provide rehabilitation therapy for their residents.  The settlement between the United States and Reliant resolves this claim, as well as a separate allegation that Reliant violated the FCA by causing the submission of claims to Medicare that were tainted by improper contracts between Reliant and physicians working at skilled nursing facilities that offered the physicians above fair market compensation for supervising and collaborating with Reliant nurse practitioners in exchange for the facilities’ therapy business.

“The Justice Department is committed to investigating and routing out any improper financial relationships between health care providers that have the potential to undermine patient care and trust.” said Acting Assistant Attorney General Chad A. Readler for the Justice Department’s Civil Division. “This settlement demonstrates our commitment to protecting the integrity of the Medicare program.”

“Companies that work to secure patient referrals by providing kickbacks inject improper financial considerations into our healthcare system,” said United States Attorney Erin Nealy Cox for the Northern District of Texas.  “Today’s settlement demonstrates our determination to thwart such improper inducements — whether they take the form of cash payments or free services.”

“Paying illegal remuneration to nursing homes and doctors to increase the bottom line – as contended by the government in this case – is unacceptable as it too often sacrifices the best interests of patients to profit-making schemes,” said CJ Porter, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services.  “Patients and taxpayers deserve better.”

The allegations resolved by the settlement agreement were originally brought by Dr. Thomas Prose under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private citizens with knowledge of fraud against the government to bring an action on behalf of the United States and to share in any recovery.  Dr. Prose will receive approximately $915,000 of the settlement proceeds. 

The case was handled by the Justice Department’s Civil Division and the U.S. Attorney’s Offices for the Northern District of Texas.  Investigative assistance was provided by the U.S. Department of Health and Human Services Office of Inspector General. 

The lawsuit is captioned United States ex rel. Prose v. Reliant Rehabilitation, Civil Action No. 3:16-CV-0707-D (N.D. Tex.).  The claims settled by this agreement are allegations only, and there has been no determination of liability.

DALLAS — A federal jury today convicted a 47-year-old man of a bank robbery he committed just one day after being released from custody for a similar bank robbery, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas. 

During trial, the jury heard evidence that Derrick Adrian Johnson, disguised in a painter’s suit from a nearby construction site, covered his face with a towel and robbed a Wells Fargo bank in Dallas, Texas, on July 9, 2016.

The day before, Johnson had been released from federal custody for a 2008 bank robbery conviction, which also involved Johnson covering his face with a towel and attempting to rob a Wells Fargo bank. 

Johnson faces a maximum penalty of 20 years’ imprisonment for this bank robbery.  He also faces an additional term of imprisonment for committing this offense while on supervised release for the 2008 bank robbery conviction.  

U.S. District Judge David C. Godbey presided over the trial and will set sentencing at a later date.  The FBI and the Dallas Police Department conducted the investigation.  Assistant U.S. Attorney Jamie L. Hoxie is prosecuting the case.

DALLAS, Texas — Darius Whetstone was found guilty of committing three armed bank robberies in June 2016.  The decision came in a written opinion issued one week after a two-day bench trial before Chief U.S. District Judge Barbara M.G. Lynn.  Whetstone had agreed that he robbed the three banks, but asked the court to find him innocent by reason of insanity because he was unable to appreciate the wrongfulness of his actions at the time.  The court found that, though Whetstone had proved that he suffered from a severe mental disease or defect when he committed the robberies, he failed to show that he was unable to appreciate the wrongfulness of his acts.

According to the court’s findings and evidence presented at trial, Whetstone entered a Capital One bank branch in Dallas on June 2, 2016, brandished a knife, and forced employees to turn over cash from one of the tellers.  Whetstone used the money from the first robbery to purchase a variety of goods, including two duffel bags and a car that, on June 7, 2016, he used to rob two more Dallas banks in the same manner as the first.  The second bank Whetstone robbed was a Bank or America branch.  The third was a BB&T branch.

In its written decision, the court indicated that “at the time of each offense, Whetstone established by clear and convincing evidence that he suffered from a severe mental disease or defect.”  But the court also found that Whetstone “did not prove by clear and convincing evidence that he was unable to appreciate that his acts were wrong when he committed each offense,” and specifically that “at the time he committed each robbery, Whetstone knew it was against the law to rob a bank and that bank robbery was wrong.”  Therefore, the court concluded, “Whetstone was not insane under 18 U.S.C. § 17 when he committed the bank robberies.”

Whetstone’s sentence will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case.

The Feberal Bureau of Investigation investigated.  Assistant U.S. Attorneys Nicholas Bunch and Russell Fusco are prosecuting the case.

           DALLAS — Dallas City Council Member and Mayor Pro Tem Dwaine Caraway, of Dallas, Texas, and Robert C. Leonard Jr., of New Orleans, Louisiana, appeared in federal court today before Chief U.S. District Judge Barbara M.G. Lynn and pleaded guilty to federal conspiracy charges, announced Erin Nealy Cox, U.S. Attorney of the Northern District of Texas.  Council Member Caraway pleaded guilty to one count of conspiracy to commit honest services wire fraud and one count of tax evasion.  Robert Leonard pleaded guilty to one count of conspiracy to commit honest services wire fraud. 

            The law enforcement operation was led by the Federal Bureau of Investigation (FBI) and the Internal Revenue Service Criminal Investigation (IRS-CI). 

          “The pleas today represent the meticulous and tireless efforts of the Federal Bureau of Investigation, the Internal Revenue Service, and the dedicated prosecutors of our office,” stated U.S. Attorney Nealy Cox. “These cases demonstrate our continued resolve to uncover corruption at the highest levels--the citizens of Dallas deserve honest government.” 

          “Today's guilty pleas are the results of a sensitive and complex investigation conducted by FBI Dallas' Public Corruption Investigative Team with assistance from the Internal Revenue Service.  The conspirators utilized their position of access and financial means to defraud the citizens of Dallas County,” said Eric K. Jackson, Special Agent-in-Charge of the Dallas Division.  “The FBI will continue to aggressively investigate any public servant who abuses their official position and access to benefit themselves financially at the taxpayer’s expense.  Additionally, those who seek to exploit public servants with financial or material support will be identified and held accountable for their actions.” 

          “IRS Criminal Investigation uses financial investigative expertise to pursue those individuals who engage in corruption and tax fraud,” said Tamera Cantu, IRS Special Agent in Charge of the Dallas Field Office.  “Merging the unique skills of each agency makes a formidable team as we investigate those who violate the public’s trust.  Today’s actions underscore that the law applies to everyone, regardless of position or power.”

          According to the Plea Agreements and Factual Resumes filed in the cases, Leonard paid and Caraway accepted more than $450,000 in bribe and kickback payments in the form of a phony consulting agreement, luxury suits, fully funded trips, gambling money, repayment of personal debt, checks and cash.  Leonard also admitted to paying Rick Sorrells, former Dallas County Schools Superintendent, over $3 million in bribes and kickbacks payments in various forms, including $200,000 toward Sorrells’ credit card and student loan debt through a bank account opened in the name of a nonexistent entity. 

         In return for the bribe and kickback payments, Caraway promised favorable official actions to further Leonard’s business interests in Dallas.  These actions included key votes to promote and continue the school bus stop-arm camera program -- which contracted with Leonard’s company, Force Multiplier Solutions -- and other actions taken to benefit Force Multiplier Solutions. 

        Both Defendants admitted to efforts undertaken to disguise and conceal the nature of the bribe and kickback payments.  Leonard funneled a significant portion of the illicit payments through various pass-through companies created and operated by his business associate, Slater Washburn Swartwood, Sr., of Louisiana.  Specifically, Swartwood, acting at Leonard’s direction, funneled and masked payments to Caraway and Sorrells as “consulting fees” or “loans” through his shell company ELF Investments.  The co-conspirators originally characterized the payments to Sorrells as “consulting,” but later attempted to recast the payments as a loan.  Sorrells provided no legitimate consulting services in exchange for the payments.  There were payments made to Caraway in the form of checks that were cashed at pawnshops and liquor stores. 

        Caraway also admitted that in 2012 through 2014, he evaded and defeated the payment of substantial income tax due and owed to the IRS resulting in a tax loss of $68,906.  Specifically, in 2014, Caraway failed to report for income tax purposes $97,000 of bribe and kickback payments he received from Leonard, under the auspice of “consulting fees.”  Caraway also offset a portion of bribe and kickback payments he did report as income in prior years via phony business expenses. 

        The other co-conspirators, Swartwood and Sorrells, pleaded guilty earlier in the year.  Swartwood pleaded guilty in February 2018 and Sorrells in April 2018 for their joint role in the conspiracy.  Both are currently out on bond.  Swartwood’s sentencing is scheduled for August,  and Sorrells’ sentencing before U.S. District Judge David C. Godbey has not yet been scheduled.

        U.S. Attorney Nealy Cox praised the efforts of the FBI, IRS-CI and the Department of Justice Tax Division.  Assistant U.S. Attorneys Andrew Wirmani, Chad Meacham, Joe Magliolo, and Economic Crime & Public Corruption Section Chief Marcus Busch are prosecuting the case. 

 

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         DALLAS — United States Attorney Erin Nealy Cox announced today the appointment of Renee Hunter and Gregory Martin as Assistant United States Attorneys. Both were sworn in today before Chief Judge Barbara M. G. Lynn.

         Ms. Hunter is assigned to the Economic Crimes & Public Corruption Section of the office’s Criminal Division, where she will focus on health care fraud cases. Most recently, Ms. Hunter worked as a litigation associate at the Dallas office of Thompson & Knight, focusing on white-collar criminal defense work with former U.S. Attorney Richard Roper. Before that, Ms. Hunter worked at Sidley Austin in Dallas. Ms. Hunter received her graduate degree from SMU Dedman School of Law, and received her undergraduate degree from Dallas Baptist University. 

         Mr. Martin is assigned to the Asset Recovery Unit within the office’s Criminal Division, where he will focus on our Financial Crimes Enforcement Network Initiative to build asset forfeiture cases from Bank Secrecy Act data. Most recently, Mr. Martin worked as a civil litigation associate at the San Diego office of Jones Day. Mr. Martin received his graduate degree from Northwestern University School of Law, and received his undergraduate degree from the University of Illinois.

         “We are proud to welcome Renee Hunter and Gregory Martin as Assistant United States Attorneys in the Northern District of Texas.” said U.S. Attorney Nealy Cox. “I am confident that they will both make a significant impact in our community and work tirelessly on behalf of the citizens of the United States.”

# # #

            FORT WORTH, Texas —Demarcus Davis, aka “Zigg,” 26, of Fort Worth, Texas, was sentenced Monday by U.S. District Judge Reed C. O’Connor to life in federal prison, announced Erin Nealy Cox U.S. Attorney of the Northern District of Texas.

            Following a four-day trial in April 2018, Davis, and co-conspirators, Herman Sanders, aka “Pooh,” 29, and Pierre Lagrone, “P” or “Pedro,” 34, were found guilty for their roles in a conspiracy to commit sex trafficking of underage girls. Lagrone and Sanders were previously sentenced by Judge O’Connor to life in federal prison and 420 months, respectively.

             Earlier in the case, co-defendant Bruce Davis, aka, “Wheatie,” pled guilty to obstruction of enforcement. Davis threatened to harm Jane Doe 2, members of her family and her 1-year old child. Davis believed Jane Doe 2 was cooperating with law enforcement in the prosecutions of Demarcus and Kentrell Davis. Davis was sentenced in May 2018 by Judge O’Connor to 64 months in federal prison.

            According to evidence presented at trial, Lagrone and Davis were violent pimps who recruited, controlled, and profited off underage female victims through commercial sex acts. Lagrone and Davis recruited and advertised underage female victims for commercial sex acts. The defendants communicated with potential clients, collected proceeds, and paid for motels rooms and supplies. Lagrone and Davis kept almost all, if not all, of the proceeds of the commercial sex acts, providing only food, shelter, and occasional clothing to the underage female victims. Sanders conspired with and assisted Lagrone in this sex trafficking.

            This case was investigated by the Homeland Security Investigations (HSI), U.S. Immigrations and Customs Enforcement’s (ICE), and the Fort Worth, Tyler and Arlington Police Departments.  Assistant U.S. Attorneys P.J. Meitl and Nicole Dana were in charge of the prosecution.

# # #

         DALLAS — Stephanie Contreraz, 27, Abraham Valdez, 53, both of Frisco, Texas, were sentenced last week before U.S. District Judge David C. Godbey,—to 46 months and 60 months, respectively, in federal prison. Co-defendant Elizabeth Flint, 27, of San Antonio, Texas, was sentenced yesterday before U.S. District Judge David C. Godbey to 40 months in federal prison; based on their respective roles in a conspiracy to commit bank fraud, announced Erin Nealy Cox, U. S. Attorney of the Northern District of Texas.  

         Co-defendants, Eddie Contreraz, of Frisco, Texas, Ima Isham, of The Colony, Texas and Brice Armijo, of The Colony, Texas are scheduled for sentencing later this year. The seventh defendant, Kwanghee Anh, remains a fugitive with an outstanding arrest warrant.

         According to the several factual resumes filed in the case, from January 2014 through March 2016, Eddie Contreraz hired co-defendants S. Contreraz, Valdez, Isham, Armijo, Flint and Anh to work at Preferred Marketing Group, Inc. (PMG), also known as PMG Business Solutions. PMG employees assisted clients with credit repair and obtained funding from lenders in the form of loans, lines of credit, and credit cards. The majority of PMG’s clients were unable to obtain funding on their own due to insufficient income and/or employment; as well as the client’s inability to provide certain documents required by lenders.

         In order to conceal these loan disqualifiers and fraudulently obtain funding, S. Contreraz, Valdez and Flint conspired with all the co-defendants charged in the indictment. According to the documents filed in the case, the seven co-defendants engaged in a wide range of fraudulent conduct when submitting loan applications. The co-defendants coached borrower clients to use false and inflated income and false employment information; personally escorted borrowers to several banks on the same day on so-called “bank tours”; and submitted fraudulent documents (false IRS Form W-2’s and false pay stubs) as part of loan packages presented to the victim banks.

         At various times during the period from at least January 2014 through March 2016, all seven co-defendants victimized many banks through the submission of hundreds of fraudulent loan applications. To date, the victim banks suffered losses of at least $4.6 million. At the sentencing of Valdez and S. Contreraz, Judge Godbey ordered the payment of restitution in the amount of $4,659,693 and $2,210,446 respectively. At the sentencing of co-defendant Flint yesterday, Judge Godbey ordered her to pay $652,505 in restitution.

            The Federal Bureau of Investigation investigated the case and Assistant U.S. Attorney David Jarvis prosecuted.

# # #

         LUBBOCK, Texas — Dustin Ray Leonard, 28, of Lubbock, Texas, appeared yesterday in federal court before U.S. Magistrate Judge D. Gordon Bryant, Jr., and pleaded guilty to enticement of a minor, announced Erin Nealy Cox, U.S. Attorney for the Northern District of Texas.

         Leonard faces not less than 10 years and not more than life in federal prison, a $250,000 fine and not less than five years nor more than a lifetime of supervised release.  Leonard has been in custody since his arrest on May 22, 2018, and will remain in custody pending sentencing.

         According to the factual resume filed in the case, on July 16, 2016, Leonard was hired by the Slaton Independent School District (SISD), as a high school teacher and Coach.  On April 12, 2018, the Slaton High School (SHS) and SISD Chief of Police learned of a possible inappropriate relationship that occurred between Leonard and an 11th grade female student, “Jane Doe.” The SISD Superintendent received an audio recording that another student had made of Leonard. In the recording, Leonard was telling a female student about his marital problems. Leonard, after being confronted by SISD about the recording, provided SISD a written letter of resignation, citing personal and family concerns. On May 8, 2018, the SISD school board met and accepted the resignation effective May 18, 2018.

         On May 21, 2018, Slaton Police Department (SPD) was provided information regarding Leonard’s Snapchat account and an inappropriate relationship he was having with Doe. Leonard was later interviewed and admitted that he and Doe had been in a sexual relationship since January 2018.

         The case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse.  Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood leverages federal, state and local resources to better investigate, apprehend and prosecute individuals who sexually exploit children.  Project Safe Childhood also prioritizes identifying and rescuing victims.  For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.  For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”

         The Slaton Police Department, Slaton Independent School District Police Department, the Texas Rangers, the Federal Bureau of Investigation, and Homeland Security Investigations investigated the case.  Assistant U.S. Attorney Jeffrey R. Haag is in charge of the prosecution.

# # #

          LUBBOCK, Texas — Jimmy Kit Fields, 37, of Olton, Texas, appeared today in federal court before U.S. Magistrate Judge D. Gordon Bryant, Jr., and pleaded guilty to enticement of a minor, announced Erin Nealy Cox, U.S. Attorney for the Northern District of Texas.

          Fields faces not less than 10 years and not more than life in federal prison, a $250,000 fine and not less than five years nor more than a lifetime of supervised release.  Fields has been in custody since his arrest on June 15, 2018, and will remain in custody pending sentencing. 

          According to the plea agreement factual resume filed in the case, in March 2018, Fields gave Jane Doe, a 13-year-old minor, a cell phone. Jane Doe’s father had suspected an inappropriate relationship between his 13-year-old daughter and Fields, and reported the incident to the Roosevelt County Sheriff’s Office (RCSO) in New Mexico. The RCSO conducted a search on the contents of the cell phone given to Doe by Fields, but were unable to find any evidence of a crime.

          On May 30, 2018, the RCSO responded to a call to investigate a report that Doe was missing. Doe’s parents believed their daughter may be trying to meet with Fields, and believed she had been communicating with him on her laptop computer. Doe later returned to the residence and provided the RCSO the password to her Facebook account.

          A review of Doe’s Facebook account by the RCSO revealed Fields had numerous sexually explicit conversations with Doe since May 29, 2018, and leading up to their contact the following morning at 1:00 a.m. During that contact, Fields provided alcohol to Doe during their encounter. In the factual resume, Fields admitted to having sexual contact with Doe on four occasions.

          The case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse.  Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood leverages federal, state and local resources to better investigate, apprehend and prosecute individuals who sexually exploit children.  Project Safe Childhood also prioritizes identifying and rescuing victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”

          The Roosevelt County Sheriff’s Office (RCSO), the Lamb County Sheriff’s Office, the Federal Bureau of Investigation, and the Department of Homeland Security, investigated the case. Assistant U.S. Attorney Jeffrey R. Haag is in charge of the prosecution.

# # #

        LUBBOCK, Texas — Eddie Estuardo Galindo-Mendez, age 44, a Guatemalan citizen, pleaded guilty today before U.S. Magistrate Judge D. Gordon Bryant, Jr., to bank robbery through the threatened use of a pipe bomb, announced Erin Nealy Cox, U.S. Attorney for the Northern District of Texas.

         Galindo-Mendez has been in custody since his arrest in March and will remain in federal custody. Galindo-Mendez faces a maximum statutory penalty of up to 20 years in federal prison and a $250,000 fine. Sentencing will be set by Senior United States District Judge Sam R. Cummings at a later date.

         According to the plea agreement factual resume filed in the case, on November 20, 2017, about 3:00 p.m., Galindo-Mendez entered the Happy State Bank at 4402 19th Street, Lubbock, Texas and handed a note to a teller. The note contained words to the effect of: “There is a bomb. It is activated. Don’t push the button. No bait money. No ink.” Galindo-Mendez then placed an item that appeared to be a pipe bomb next to the teller’s computer. The device was made of capped galvanized pipes, duct tape, and wires connecting the device to a cell phone. Based upon Galindo-Mendez’s demands, the teller surrendered the money.

         Surveillance videos later revealed the suspect fled the scene on a bicycle. Later review of the purported pipe bomb left at the bank determined it was inert.

         Earlier that same day, at 1:46 p.m., the Texas Tech University Police Department (TTU PD) was notified of a suspicious package at Talkington Hall, Z2-D Parking Lot, 1803 Boston Avenue, Lubbock, Texas. TTU PD officers responded to that location and saw a gray Ford F-150 with its gas tank lid open. There were galvanized pipes with caps on both ends and duct tape around them hanging from the gas tank lid by a string. There was also a cell phone on the pipes with wires going from the phone to the pipes. TTU PD evacuated Merket Alumni Center, Talkington Hall, Horn Hall, and Knapp Hall. Upon further examination, the Lubbock County Sheriff’s Office Bomb Squad determined that the device was inert and processed it for evidence.

        The Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Federal Bureau of Investigation, the Lubbock County Sheriff’s Office, the Lubbock Police Department, and Texas Tech University Police Department investigated the case. Assistant U.S. Attorney Jeffrey R. Haag is in charge of the prosecution.

# # #

          FORT WORTH, Texas — Nygul Anderson, 19, and Albert Gonzalez, 19, were sentenced Monday by U.S. District Judge Reed C. O’Connor, to 36 and 30 months, respectively, in federal prison, announced Erin Nealy Cox U.S. Attorney of the Northern District of Texas.

          Following a one-day bench trial in March 2018, Judge O’Connor convicted both Anderson and Gonzalez of conspiracy to use an interstate facility to commit a travel act violation, conspiracy to possess extortion proceeds and money laundering. Co-conspirator Fernando Cabrera pled guilty in December 2017 and was sentenced in April 2018 to fourteen months in federal prison.

          According to the evidence presented at trial and the documents filed in this case, on September 22, 2017, a victim began receiving threatening calls from an unrecognizable Mexican telephone number.  The caller stated he had kidnapped the victim’s two brothers in Rioverde, San Luis Potosi, Mexico and demanded $300,000 or they would be killed.  The ransom demand was lowered to $20,000, and the victim ultimately paid and delivered the ransom, per the kidnapper’s instructions. The kidnapped brothers were then recovered from being tied up in a motel room in Rioverde, San Luis Potosi, Mexico.

          Seven days later, on September 29, 2017, the same victim received another call from the unrecognizable Mexican telephone number demanding an additional $100,000 otherwise; they would again kidnap the brothers and kill them.  The Mexico kidnapper contacted co-conspirator Cabrera to travel to Fort Worth to pick up the money.  Cabrera then recruited his friend, Gonzalez, and they in turn recruited Anderson and a 17-year-old minor to pick up the money.

          Shortly thereafter, Cabrera, Gonzalez, Anderson, Cabrera, and a 17-year-old minor – were arrested as they attempted to collect the ransom money.

          This case was investigated by the Federal Bureau of Investigation and the North Richland Hills Police Department. Assistant U.S. Attorneys P.J. Meitl and Chris Wolfe were in charge of the prosecution.

# # #

         FORT WORTH, Texas — Craig Michael Tezeno, 46, of Fort Worth, Texas, pleaded guilty yesterday before U.S. Magistrate Judge Jeffrey L. Cureton to one count of arson, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.

          Tezeno faces up to twenty years in federal prison and a $250,000 fine, and will remain in custody pending sentencing.

           According to court documents filed in the case, on May 11, 2018, Tezeno entered the Dillard’s Department store in the Hulen Mall in Fort Worth, Texas with a glass bottle filled with gasoline and a rag. This device is commonly known as a Molotov Cocktail. While in the store, Tezeno lit the rag and placed the Molotov Cocktail on the floor. Shortly thereafter, Tezeno entered the Sears Department store and lit a second Molotov Cocktail. Tezeno placed both of these devices in the stores hoping to start a fire and cause damage to the store and its property. 

          On May 18, 2018, Tezeno returned to the Hulen Mall in Fort Worth, Texas and re-entered the Sears store. While in the store, Tezeno lit a third Molotov Cocktail and placed it on the floor.

          “This guilty plea marks the culmination of several weeks of hard work, dedication, and cooperation between federal, state, and local authorities,” said U.S. Attorney Nealy Cox.  “Through their efforts, we were able to identify and bring to justice an arsonist who put the safety of the people of the Northern District of Texas at risk.”

          “This investigation is a great example of federal, state and local agencies working together to stop a clear and present threat to our communities,” said FBI Dallas Special Agent-in-Charge, Eric K. Jackson. “With the help of the United States Attorney’s Office, we are holding this subject accountable for his actions that occurred at the Hulen Mall.”

           The Federal Bureau of Investigation and the Fort Worth Police Department investigated the case with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Fort Worth Fire Department’s Arson Investigations Unit, Tarrant County District Attorney’s Office and FBI Task Force Officers from the Tarrant County Sherriff’s Office, the Arlington Police Department, the Naval Criminal Investigation Service, the Department of Homeland Security, and the Texas Department of Public Safety.

           The case is being prosecuted by Assistant United States Attorney Jay Weimer.

 

# # #

       FORT WORTH, Texas — Pierre Lagrone, aka “P” or “Pedro,” 34, was sentenced yesterday by U.S. District Judge Reed C. O’Connor, to life in federal prison, announced Erin Nealy Cox U.S. Attorney of the Northern District of Texas.

       Following a four-day trial in April 2018, Lagrone and co-conspirators, Herman Sanders, aka “Pooh,” 29, and Demarcus Davis, aka “Zigg,” 26, were found guilty for their roles in a conspiracy to commit sex trafficking of underage girls. Sanders was previously sentenced before Judge O’Connor to 420 months and Davis is scheduled for sentencing July 30, 2018.

       According to evidence presented at trial, Lagrone and Davis were violent pimps who recruited, controlled, and profited off underage female victims through commercial sex acts. Lagrone and Davis recruited and advertised underage female victims for commercial sex acts. The defendants communicated with potential clients, collected proceeds, and paid for motels rooms and supplies. Lagrone and Davis kept almost all, if not all, of the proceeds of the commercial sex acts, providing only food, shelter, and occasional clothing to the underage female victims. Sanders conspired with and assisted Lagrone in this sex trafficking.

       This case was investigated by the U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Federal Bureau of Investigation and the Fort Worth, Tyler and Arlington Police Departments.  Assistant U.S. Attorney P.J. Meitl and Nicole Dana were in charge of the prosecution.

# # #

          DALLAS — Francisco Javier Gonzalez, a/k/a “Javier Gonzalez,”, 46, of Duncanville, Texas, was sentenced yesterday by U.S. District Judge Sam A. Lindsay to 60 months in federal prison and ordered to pay $611,740.55 in restitution for his role in a scheme to defraud numerous homeowners, banks and the Department of Housing and Urban Development, (HUD), announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.

             Gonzalez pleaded guilty in September 2017 to one count of mail fraud, stemming from his work at the Dallas County Community Action Committee, Inc. (DCCAC), a non-profit entity accredited by HUD to provide housing counseling.  Gonzalez has been in custody since his arrest in October 2016.

           According to the plea agreement factual resume filed in the case, Gonzalez served as a Vice President and Director for DCCAC, and leased space in the DCCAC offices for another entity, known as Residential Counseling FJ LLC.

           While working in the DCCAC building, Gonzalez falsely claimed he was certified by HUD to provide foreclosure counseling assistance.  Gonzalez sought out victims looking for mortgage loan and foreclosure prevention assistance and would then meet these victims in the DCCAC offices or in their homes.

          Additionally, as stated in the plea agreement factual resume, Gonzalez prepared and submitted incomplete and false mortgage assistance applications for the victims.  Gonzales instructed the victims to not communicate with the banks, as this would prevent him from effectively obtaining the loan modification.  Additionally, Gonzalez required lump sum payments for his supposed assistance; and instructed the victims to make mortgage payments directly to him indicating he would forward these payments to the bank. 

          Gonzalez did not submit the monies he was paid by the victims to the banks, but instead used the money for his own personal expenses. 

          HUD Office of Inspector General, Federal Housing Finance Agency Office of Inspector General, and the United States Postal Inspection Service investigated the case.  Assistant U.S. Attorney P.J. Meitl was in charge of the prosecution.

# # #

A federal grand jury has indicted eight MS-13 members, on charges in connection with their MS-13 gang activities, including racketeering conspiracy; attempted murder in aid of racketeering; assault with a dangerous weapon in aid of racketeering; conspiracy to commit murder in aid of racketeering; and use, carry and possession of a firearm during and in relation to a crime of violence.

The indictment was announced by Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Erin Nealy Cox for the Northern District of Texas; Special Agent in Charge Katrina W. Berger of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Dallas Office; Chief Jeff Spivey of the Irving, Texas Police Department; Chief U. Reneé Hall of the Dallas Police Department and District Attorney Faith Johnson of the Dallas County District Attorney’s Office.

• Charged in the 18-count indictment, which was unsealed today, are the following alleged MS-13 members and associates:
• Rolan Ivan Hernandez-Fuentes, 25, aka Ivan Fuentes, Tasmania, Ronal Ivan and Fuentes Hernandez;
• Jerson Gutierrez-Ramos, 20, aka Gerson Gutierrez, aka Sparky;
• Cristian Wilfredo Cabrera-Cruz, 26, aka Cristin Benjamin Vigil and Mama;
• Kevin Cruz, 19, aka Street Danger;
• Jose Armando Saravia-Romero, 19, aka Jose Saravia, Mandy and Pinky;
• Manuel Amaya-Alvarez, 21, aka Manuel Amaya and Chocolate; and
• Jonathan Alexander Baires, 20, aka Splinter. 

The name of the eighth defendant is currently under seal.

“The Department of Justice will not allow MS-13 to terrorize any community, school or street corner,” said Attorney General Sessions.  “The gang has more than 10,000 members following its barbaric motto of ‘kill, rape, and control’ across 40 states, and that threatens law-abiding Americans. Today’s indictment of eight MS-13 members—including five who are charged as illegal aliens in possession of firearms —makes clear that the Trump Administration and this Department will continue to go on offense against MS-13 with every lawful tool at our disposal.  I want to thank our fabulous Department of Justice attorneys for their hard work on this case as well as our partners with HSI, ICE, the Dallas County District Attorney's office, and the Dallas and Irving Police Departments. This case is yet another step toward dismantling MS-13 and taking its members off our streets for good."

“MS-13 is one of the most violent and ruthless gangs on the streets today,” stated U.S. Attorney Nealy Cox.  “Working with our federal, state and local partners, we are determined to dismantle this organization wherever we find it in order to make our communities safer in Texas.”

“Gangs — and especially transnational gangs like MS-13 — are responsible for many of the violent crimes that occur throughout the country,” said Special Agent in Charge Katrina W. Berger, HSI Dallas.  “Some of these violent gang members have illegally entered the United States as unaccompanied alien children.  As demonstrated with this HSI-led investigation, an ongoing coordinated multi-agency law enforcement effort is the best means of curtailing gang numbers, gang finances, and gang effectiveness to operate.

“Evil gangs like MS-13 are perpetrators of senseless violence in our communities,” said Texas Governor Greg Abbott. “The indictment of these individuals shows a continued commitment to going after these dangerous individuals and keeping our communities safe. The State of Texas will continue to offer any assistance and resources necessary to crack down on these criminals, and I thank our federal, state, and local partners in law enforcement for their ongoing efforts to address gang violence across Texas.”

According to the indictment, MS-13 is a national and transnational gang composed primarily of immigrants or descendants from El Salvador.  Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate in cities around the country, including the Irving Loco Salvatruchas (ILS) clique in the Dallas area.  MS-13 members and associates are required to commit acts of violence to join the gang, and to maintain membership and discipline within the gang.  One of the principal rules of MS-13 is that its members and associates must attack and kill rivals, known as “chavalas,” whenever possible. Members and associates of the ILS clique held meetings in multiple locations in the vicinity of Irving, Texas, including several public parks and a tunnel under Irving.

According to the indictment, beginning on or about July 2016, and continuing through on or about the date of the indictment, Hernandez-Fuentes, Gutierrez-Ramos, and Cruz, participated in a racketeering conspiracy that included attempted murder, conspiracy to commit murder, and robbery. 

Across the racketeering conspiracy and other counts, the indictment charges the following defendants for their alleged involvement in six attacks, including multiple machete attacks, upon 10 victims, including members or associates of the rival 18th Street Gang:

Date (on/in or about)

Location

Defendants

Weapons

Victims

July 14, 2017

5600 Block of Spring Valley Road in Dallas

Hernandez-Fuentes, Gutierrez-Ramos, Cabrera-Cruz

Machete and other weapons

Two (one from 18th Street Gang)

July 15, 2017

200 block of West Rochelle Road in Irving

Hernandez-Fuentes, Gutierrez-Ramos

Machete

One (drug dealer)

Aug. 9, 2017

3000 block of Webb Chapel Extension in Dallas

Hernandez-Fuentes, Gutierrez-Ramos, Cruz

Knife, sledgehammer, and other weapons

One (from 18th Street Gang)

Aug. 19, 2017

1900 block of East Grauwyler Road in Irving

Hernandez-Fuentes, Gutierrez-Ramos, Cruz, Saravia-Romero

Metal bat

One (from 18th Street Gang)

Middle of August 2017 through Aug. 20, 2017

Two Dallas parks and an apartment complex in Dallas

Hernandez-Fuentes, Gutierrez-Ramos, Cruz, Saravia-Romero

Shotgun

One (from 18th Street Gang)

Beginning of 2017 through Sept. 25, 2017

Various locations in Dallas and Running Bear Park in Irving

Hernandez-Fuentes, Gutierrez-Ramos, Cruz, Amaya-Alvarez, Baires

Multiple machetes, shotgun, and other weapons

Four (one from 18th Street Gang)

Cabrera-Cruz was arrested on the indictment yesterday and made an Initial Appearance in Dallas.  Hernandez-Fuentes, Gutierrez-Ramos, Cruz, Saravia-Romero, Amaya-Alvarez, and Baires are currently in Texas state custody, on charges relating to the August 19, 2017 and September 25, 2017 events described above.  Their Initial Appearances will be scheduled.  

An indictment is not a finding of guilt.  An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. 

The investigation was conducted by HSI Dallas, the Irving Police Department, the Dallas Police Department, and the Dallas County District Attorney’s Office, with assistance from ICE’s Enforcement and Removal Operations.  Trial Attorney Joseph Wheatley of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Gary Tromblay and Siddharth Mody of the Northern District of Texas, are prosecuting this case.

          DALLAS - A federal grand jury has indicted eight MS-13 members, on charges in connection with their MS-13 gang activities, including racketeering conspiracy; attempted murder in aid of racketeering; assault with a dangerous weapon in aid of racketeering; conspiracy to commit murder in aid of racketeering; and use, carry and possession of a firearm during and in relation to a crime of violence.

          The Indictment was announced by U.S. Attorney Erin Nealy Cox for the Northern District of Texas; Special Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Special Agent in Charge Katrina W. Berger of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Dallas Office; Field Office Director Marc Moore of U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations (ICE-ERO); Chief Jeff Spivey of the Irving Police Department; Chief U. Reneé Hall of the Dallas Police Department and District Attorney Faith Johnson of the Dallas County District Attorney’s Office.

          Charged in the 18-count Indictment, which was unsealed today, are the following alleged MS-13 members and associates:

• Rolan Ivan Hernandez-Fuentes, 25, aka Ivan Fuentes, Tasmania, Ronal Ivan and Fuentes Hernandez;
• Jerson Gutierrez-Ramos, 20, aka Gerson Gutierrez, aka Sparky;
• Cristian Wilfredo Cabrera-Cruz, 26, aka Cristin Benjamin Vigil and Mama;
• Kevin Cruz, 19, aka Street Danger;
• Jose Armando Saravia-Romero, 19, aka Jose Saravia, Mandy and Pinky;
• Manuel Amaya-Alvarez, 21, aka Manuel Amaya and Chocolate; and
• Jonathan Alexander Baires, 20, aka Splinter.

The name of the eighth defendant is currently under seal.

            “MS-13 is one of the most violent and ruthless gangs on the streets today,” stated U.S. Attorney Nealy Cox.  “Working with our federal, state and local partners, we are determined to dismantle this organization wherever we find it in order to make our communities safer in Texas.”

            “The Department of Justice will not allow MS-13 to terrorize any community, school or street corner,” said Attorney General Sessions.  “The gang has more than 10,000 members following its barbaric motto of ‘kill, rape, and control’ across 40 states, and that threatens law-abiding Americans. Today’s Indictment of eight MS-13 members—including five who are charged as illegal aliens in possession of firearms —makes clear that the Trump Administration and this Department will continue to go on offense against MS-13 with every lawful tool at our disposal.  I want to thank our fabulous Department of Justice attorneys for their hard work on this case as well as our partners with HSI, ICE, the Dallas County District Attorney's office, and the Dallas and Irving Police Departments. This case is yet another step toward dismantling MS-13 and taking its members off our streets for good."

            “Gangs — and especially transnational gangs like MS-13 — are responsible for many of the violent crimes that occur throughout the country,” said Special Agent in Charge Katrina W. Berger, HSI Dallas.  “Some of these violent gang members have illegally entered the United States as unaccompanied alien children.  As demonstrated with this HSI-led investigation, an ongoing coordinated multi-agency law enforcement effort is the best means of curtailing gang numbers, gang finances, and gang effectiveness to operate.

           “Evil gangs like MS-13 are perpetrators of senseless violence in our communities,” said Texas Governor Greg Abbott. “The Indictment of these individuals shows a continued commitment to going after these dangerous individuals and keeping our communities safe. The State of Texas will continue to offer any assistance and resources necessary to crack down on these criminals, and I thank our federal, state, and local partners in law enforcement for their ongoing efforts to address gang violence across Texas.”

           According to the Indictment, MS-13 is a national and transnational gang composed primarily of immigrants or descendants from El Salvador.  Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate in cities around the country, including the Irving Loco Salvatruchas (ILS) clique in the Dallas area.  MS-13 members and associates are required to commit acts of violence to join the gang, and to maintain membership and discipline within the gang.  One of the principal rules of MS-13 is that its members and associates must attack and kill rivals, known as “chavalas,” whenever possible. Members and associates of the ILS clique held meetings in multiple locations in the vicinity of Irving, Texas, including several public parks and a tunnel under Irving.

          According to the Indictment, beginning on or about July 2016, and continuing through on or about the date of the Indictment, Hernandez-Fuentes, Gutierrez-Ramos, and Cruz, participated in a racketeering conspiracy that included attempted murder, conspiracy to commit murder, and robbery.

          Across the racketeering conspiracy and other counts, the Indictment charges the following defendants for their alleged involvement in six attacks, including multiple machete attacks, upon 10 victims, including members or associates of the rival 18th Street Gang:

Date (on/in or about)

Location

Defendants

Weapons

Victims

July 14, 2017

5600 Block of Spring Valley Road in Dallas

Hernandez-Fuentes, Gutierrez-Ramos, Cabrera-Cruz

Machete and other weapons

Two (one from 18th Street Gang)

July 15, 2017

200 block of West Rochelle Road in Irving

Hernandez-Fuentes, Gutierrez-Ramos

Machete

One (drug dealer)

Aug. 9, 2017

3000 block of Webb Chapel Extension in Dallas

Hernandez-Fuentes, Gutierrez-Ramos, Cruz

Knife, sledgehammer, and other weapons

One (from 18th Street Gang)

Aug. 19, 2017

1900 block of East Grauwyler Road in Irving

Hernandez-Fuentes, Gutierrez-Ramos, Cruz, Saravia-Romero

Metal bat

One (from 18th Street Gang)

Middle of August 2017 through Aug. 20, 2017

Two Dallas parks and an apartment complex in Dallas

Hernandez-Fuentes, Gutierrez-Ramos, Cruz, Saravia-Romero

Shotgun

One (from 18th Street Gang)

Beginning of 2017 through Sept. 25, 2017

Various locations in Dallas and Running Bear Park in Irving

Hernandez-Fuentes, Gutierrez-Ramos, Cruz, Amaya-Alvarez, Baires

Multiple machetes, shotgun, and other weapons

Four (one from 18th Street Gang)

 

          Cabrera-Cruz was arrested on the Indictment yesterday and made an Initial Appearance in Dallas.  Hernandez-Fuentes, Gutierrez-Ramos, Cruz, Saravia-Romero, Amaya-Alvarez, and Baires are currently in Texas state custody, on charges relating to the August 19, 2017 and September 25, 2017 events described above.  Their Initial Appearances will be scheduled. 

          An Indictment is not a finding of guilt.  An Indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

          The investigation was conducted by HSI Dallas, the Irving Police Department, the Dallas Police Department, and the Dallas County District Attorney’s Office, with assistance from ICE’s Enforcement and Removal Operations.  Trial Attorney Joseph Wheatley of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Gary Tromblay and Siddharth Mody of the Northern District of Texas, are prosecuting this case.

 

# # #

     

 

             DALLAS — Glenn Eugene Halfin, 64, from Grapevine, Texas, appeared today before U.S. Magistrate Judge Jeffrey L. Cureton in the U.S. District Court for the Northern District of Texas and pleaded guilty to a federal charge of interfering with an African-American family’s housing rights, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas and Acting Assistant Attorney General John Gore of the Civil Rights Division.

             According to court documents, Halfin threatened force, intimidated, and interfered with a family because of their race and occupancy of an apartment that was located directly above his own apartment. 

             According to documents filed in connection with the guilty plea, on Dec. 19, 2017, Halfin purchased a baby doll at a Wal-Mart in Grapevine, Texas. He took a rope, fashioned it into a noose, and hung the baby doll from the noose. Halfin then hung the rope noose and baby doll on the railing directly in front of the only staircase the family could use to access their apartment. Halfin did so, knowing that this display would be particularly intimidating for the family who had a young daughter. In addition, the defendant referenced in his factual basis repeated intimidation of and interference with the same African-American family on other occasions.

            “No one should be afraid to go home at night,” said U.S. Attorney Erin Nealy Cox.  “Our community will not tolerate crimes of intimidation or bigotry, and my office will continue to prosecute all those who persecute others based on their race, color, ethnicity, or religious beliefs.”

            “The Justice Department will not tolerate acts of intimidation and fear, or illegal threats against any individual or family because of their race,” said Acting Assistant Attorney John Gore. “We will continue to prosecute hate crime offenders.”

             Halfin faces a statutory maximum penalty of no more one year in federal prison and a $100,000 fine. His sentencing is scheduled for a later date.

            This case was investigated by the FBI and the Grapevine Police Department. The case was prosecuted by Trial Attorney Rebekah Bailey of the Civil Rights Division’s Criminal Section and Assistant United States Attorney Nicole Dana.

# # #

Federal Indictment Charges 13 Wichita Falls Residents in a Drug Conspiracy

          WICHITA FALLS, Texas — Thirteen defendants were charged earlier this week in a one-count federal Indictment, for their role in a large-scale methamphetamine distribution conspiracy announced Erin Nealy Cox, U.S. Attorney for the Northern District of Texas today at a press conference.

Twelve of the thirteen individuals were arrested and made their initial appearance in federal court in Wichita Falls before U.S. Magistrate Judge Hal R. Ray, Jr.  Eleven still remain in custody.  One defendant is still at-large.

Those arrested include:

Lawrence Martin Boone, 51, Wichita Falls, Texas

Alicia Lane Murfield, 24, Wichita Falls, Texas

Ashleh Dawn Bowen 22, Wichita Falls, Texas

Charles Cheatle 43, Wichita Falls, Texas

Allyssa Marie Curry, also known as “Allyssa Marie Rogers” 29, Wichita Falls, Texas

Alexis Leigh Deleon 24, Wichita Falls, Texas

Brandon Shane Eustice 32, Wichita Falls, Texas

Michael David House 33, Wichita Falls, Texas

Michael Steven Mello 49, Wichita Falls, Texas

Justin Brian Onstead 23, Wichita Falls, Texas

Jason Alan Smith 44, of Abilene, Texas

Timothy Wayne Tatom 55, Wichita Falls, Texas

          According to the Indictment filed in the case, the conspiracy began in March 2017, and operated until approximately January 10, 2018.  The Indictment also contains a forfeiture notice that includes seven handguns and over $20,000 of U.S. Currency. 

          “These arrests are the results of a 14-month joint investigation with state, local and federal authorities,” stated U.S. Attorney Nealy Cox.  “We have invested additional resources to fight the trafficking of dangerous drugs and violent crime in Wichita Falls, and we are now seeing the results of this increased presence.”

            A federal criminal Indictment is a written statement of the essential facts of the offense charged.  A defendant is entitled to the presumption of innocence until proven guilty.  If convicted, the defendant’s sentence will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record, the defendant’s role in the offense and the characteristics of the violation.

           If convicted, each defendant faces a maximum statutory penalty of 20 years in federal prison and a $1,000,000 fine.

           Department of Public Safety, Criminal Investigation Division; Wichita Falls PD; Wichita County District Attorney’s Office, Drug Enforcement Division; Rhome PD; and the Iowa Parks PD are investigating.  Assistant U.S. Attorney L. Rachael Jones is in charge of the prosecution.

###

     

 

          WICHITA FALLS, Texas —In a collaborative effort by the Safe Streets Task Force, to include agents and officers from the FBI and Wichita Falls Police Department, Twenty-two  individuals are in federal custody on a federal Complaint for a drug trafficking conspiracy, announced Erin Nealy Cox, U.S. Attorney for the Northern District of Texas.

Those defendants arrested today or in custody on other charges are:

Floyd Raymond Richardson, 48, Vernon, Texas

Wayland Brent Ballard, 51, Vernon, Texas

Brad Deshaun White, 40, Dallas, Texas

Christopher Davis, 38, Dallas, Texas

Virginia Ann White, 66, Vernon, Texas

Teasie Winnell Scott, 49, Vernon, Texas

Terry Lamar Murray, 35, Vernon, Texas

John Dupree Wesley, 31, Vernon, Texas

Djuanna Kyvon Newman, 32, Vernon, Texas

Chadrick Deshawn McBride, 39, Vernon, Texas

Galvin Lamar Daniels, also known as “G”, age 33, Vernon, Texas

Demarcus Anatanya Madison, also known as “Chastie”, 40, Abilene, Texas

Shelby Breanna Funk, 24, Dallas, Texas

Christian Joseph Chavez, also known as “Shrek”, 34, Wichita Falls, Texas

Adam Domingo Garcia, 49, Vernon, Texas 

Lonta Hobbs, 34, Clarksville, Texas

Chmira Denise Williams, 28, Wichita Falls, Texas

Candace Rebecca Rodgers, 25, Wichita Falls, Texas

Jacinda Renee Burris, 30, Iowa Park, Texas

Addis Scales, 37, Wichita Falls, Texas

Alvin Gerald Travis, 67, Vernon, Texas (Transient)

Amber Dawn Hatcher, 37, Electra, Texas

            “The arrests today mark the culmination of several years’ worth of hard work, dedication, and cooperation between federal, state, and local authorities in an effort to fight the trafficking of methamphetamine that destroys lives and families in our communities throughout the Northern District of Texas,” stated U.S. Attorney Nealy Cox.

            “Today, the FBI, working with its local, state and federal law enforcement partners dealt an unrelenting blow to those individuals and groups that have profited from the distribution of illegal drugs and threatened the safety of the Wichita Falls and Vernon communities,” said FBI Dallas Special Agent-in-Charge, Eric K. Jackson.

            The Complaint was signed by United States Magistrate Judge Hal R. Ray, Jr. on June 25, 2018, and unsealed today, charging 25 individuals in a conspiracy to distribute and possess with intent to distribute methamphetamine. Twenty-two of those defendants were arrested this morning, and two are still under seal.

            Most of the defendants arrested today will make their initial appearances in federal court in Wichita Falls on Friday, July 13, 2018, before United States Magistrate Judge Hal R. Ray, Jr.

            According to the Complaint, the defendants engaged in a conspiracy to distribute methamphetamine throughout Vernon, Wichita Falls, Dallas, and Fort Worth, Texas.  The complaint further alleges that from approximately September 2014 through December 2017, the defendants conspired together, and with others, to possess with intent to distribute 50 grams or more of methamphetamine.

            As alleged in the Complaint, as part of the conspiracy, its members had a fluid hierarchy that evolved over time.  As some members were arrested or otherwise temporarily unavailable, other members took over the receipt and delivery of methamphetamine.  Additionally, some of the money derived from the sale and distribution of methamphetamine would be used to purchase additional quantities of methamphetamine. 

            A federal criminal complaint is a written statement of the essential facts of the offense charged.  A defendant is entitled to the presumption of innocence until proven guilty. If convicted, the defendant’s sentence will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record, the defendant’s role in the offense and the characteristics of the violation.

            The Federal Bureau of Investigation; Wichita Falls Police Department; Texas Department of Public Safety, Wichita County Sherriff’s Office, Vernon Police Department, 46th Judicial District Attorney’s Office, and the US Marshals Service are in charge of the investigation. Assistant U.S. Attorney Shawn Smith is in charge of the prosecution.

 

# # #

 

           DALLAS — Bilal Ahmed Khaleeq, 48, a Dallas attorney, was sentenced today by U.S. District Judge David C. Godbey to 6 months in federal prison, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.

            Co-defendant Amna Cheema, 38, a Pakistani national, previously pleaded guilty to her role in the scheme and was sentenced to time served.

            According to the plea agreement factual resume, in June 2015, Khaleeq and others knowingly and unlawfully conspired and agreed together and with each other to unlawfully facilitate and enter into a marriage between Cheema and a United States citizen, Person A, for the purpose of evading immigration laws. Cheema and Person A were married in Dallas County, Texas and subsequently filed permanent residence applications with USCIS in July 2015. In exchange for agreeing to marry Cheema, Person A was paid $745. Cheema also admitted engaging in discussions with Khaleeq and Person A at Khaleeq’s law office on more than one occasion to discuss preparation for the USCIS interview and required documentary evidence including joint bank accounts, tax returns, and bills concerning their joint residence. According to co-defendant Cheema, Khaleeq also represented the couple at the USCIS interview in April 2016 and advised them on additional evidence to make the marriage appear legitimate.

                      U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated the case. Special Assistant U.S. Attorney Lynn Javier prosecuted.

# # #

          DALLAS — Following a six-day trial before U.S. District Judge Sam A. Lindsay, a federal jury has convicted Alvin Christopher Penn, 28, for escaping from federal custody in Hutchins, Texas and being a convicted felon in possession of a firearm, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas. 

          Penn is scheduled to be sentenced on December 3, 2018.  He faces a maximum penalty of 10 years’ imprisonment for the felon-in-possession charge and five years’ imprisonment for the escape charge. 

        During the course of the trial, the jury heard evidence that Penn was serving a sentence for a federal conviction for being a felon in possession of a firearm.  As a part of his federal sentence, Penn was assigned by the Bureau of Prisons to serve out the end of his sentence at a residential reentry center in Hutchins, Texas. 

        On July 6, 2017, Penn was permitted to leave the residential reentry center to go to work in Fort Worth, Texas.  However, instead of going to work, Penn went to an apartment complex in Grand Prairie.  Penn accepted a loaded firearm from a family member and shot several rounds at two men, which started a shootout throughout the apartment complex.  Penn took the firearm with him as he drove away from the apartment complex. 

        A police officer observed Penn driving a vehicle in Grand Prairie that matched the description of the suspected shooter’s vehicle and began following Penn.  Penn attempted to evade the officer and engaged in a high-speed chase through a residential neighborhood, achieving speeds of 70-80 miles per hour.  Penn lost control of the vehicle, drove through a fence of another apartment complex, and crashed into a building.  After crashing the vehicle, Penn took the gun with him, brandished it at a bystander, and threw the firearm over the fence before fleeing from police.  He did not return to his residential reentry center and was apprehended approximately a month later.      

          The Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Marshals Service, and the Grand Prairie Police Department investigated.  Assistant U.S. Attorneys Jamie L. Hoxie and Marcus Busch are prosecuting the case.

# # #

          LUBBOCK, Texas — Following a one-day trial today before Senior U.S. District Judge Sam R. Cummings, a federal jury has convicted Enrique Rodriguez, 37, of El Paso, Texas, for his role in smuggling heroin and cocaine into the United States, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.

          Rodriguez was convicted on one count of conspiracy to distribute and possess with intent to distribute controlled substances, one count of possession with intent to distribute one kilogram or more of heroin, and one count of possession with intent to distribute 500 grams or more of cocaine.  Judge Cummings ordered a presentence report prepared and will set a sentencing date once the presentence report is filed.  Rodriguez has been in federal custody since his arrest on April 25, 2018.

          According to evidence presented at trial, on April 25, 2018, an Investigator with the 32nd Judicial District Attorney’s Office conducted a traffic stop of a 2007 Ford Escape for an expired vehicle registration sticker.  After noticing numerous indicators of suspicious activity, the Investigator had a narcotics detection canine do an open-air sniff around the Ford Escape.  The canine alerted to the odor of narcotics coming from the vehicle.

          A later search of the 2007 Ford Escape yielded two kilograms of heroin and one kilogram of cocaine.  Law enforcement later recovered two more kilograms of cocaine hidden inside the center console of the vehicle.

          During the trial, the United States presented evidence that Rodriguez was a Lieutenant in the Barrio Azteca criminal street gang.  It also presented evidence that Rodriguez had smuggled the drugs from Mexico into the United States on April 24, 2018, for the Juarez Cartel and its enforcement arm, La Linea.  In total, Rodriguez had smuggled approximately 1,000 pounds of heroin and 1,000 pounds of cocaine into the United States.   

          The defendants’ sentence will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record, the defendant’s role in the offense and the characteristics of the violation. 

          The 32nd Judicial District Attorney’s Office, the Texas Department of Public Safety, and Homeland Security Investigations investigated the case.  Assistant U.S. Attorneys Juanita Fielden, Anderson Hatfield, and Jeffrey Haag are prosecuting the case.

# # #

          DALLAS – An indictment returned by a federal grand jury yesterday in Dallas charges Patrick O. Howard, 36, of Dallas, Texas, with offenses related to his role in a scheme to defraud investors and to obtain money by materially false and fraudulent pretenses, announced Erin Nealy Cox, U.S. Attorney for the Northern District of Texas.

          Specifically, Howard is charged with five counts of securities fraud and nine counts of mail fraud. 

          The indictment alleges that from January 2015 through April 2017, Howard owned Howard Capital and OE Capital located in Dallas, Texas, and exercised authority over the companies and Funds.

          Howard represented himself to be a Registered Investment Advisor, and offered and sold membership units to investors for $50,000 apiece.  Investors were told the Funds would invest proceeds from unit sales into third-party companies and that the Funds stood to profit when the companies paid revenue interests. 

          Howard mislead investors by telling them that their investment would earn a 12% minimum annual return, that OE Capital had average earnings of 20%, that investors’ investments and minimum returns were protected by insurance, and that the Funds purchased real estate to mitigate investors’ risk.

          Howard mailed investors who elected to reinvest phony quarterly earnings account statements showing their accounts had been credited the minimum preferred return, when they had not.  At the same time, investors who chose to receive their quarterly earnings as distributions were actually given Ponzi payments, or monies paid by other investors, rather than actual earnings of the Funds.

          The indictment further alleges that Howard never used a single dollar of investor funds to purchase real estate, and used investors’ money on things the investors did not approve or even know of, including, a nearly $20,000 payment to buyout a former business partner and approximately a $225,000 payment to Howard’s personal bank account that was neither salary nor a bonus. 

           An indictment is merely an allegation and defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.  If Howard is convicted, the mail fraud counts carry a maximum statutory penalty of 20 years in federal prison and a $250,000 fine, as to each count. 

          The indictment also includes a forfeiture allegation that would require the defendants, upon conviction, to forfeit to the U.S. any property traceable to the offense.

          The case is being investigated by the Federal Bureau of Investigation and the United States Postal Service.  Assistant U.S. Attorney Andrew Wirmani is prosecuting the case.

 

# # #

 

          DALLAS – Nehaj Rizvi, 29, from Carrollton, Texas, was arrested today on a federal complaint charging her with health care fraud in connection with a $2.5 million home health care fraud scheme. The announcement was made today by U.S. Attorney Erin Nealy Cox of the Northern District of Texas.

          According to documents filed in the case, Life Spring Housecall Physicians, Inc., (Life Spring), generated hundreds of fraudulent home health orders and certifications for multiple home health agencies in the DFW area. Life Spring is operated by Rizvi and owned by her husband, Mohsin Raza.

          Rizvi used a physician’s signature stamp to sign home health orders and home health certifications for patients that the physician had never seen and who were not qualified for home health care. In reality, far from being homebound, many of the patients were able to drive and carry out normal functions of everyday life. More than 100 home health agencies obtained physician orders and certifications from Life Spring, which enabled the agencies to claim their patients were homebound and gave the appearance that their services were justified. Life Spring’s false documents led to home health agencies billing Medicare approximately $2,500,000 in fraudulent claims.

          “The charges announced today in Dallas are an example of the outstanding investigative work by this district’s Healthcare Fraud Strike Force that has been in operation since 2011,” stated U.S. Attorney Nealy Cox. “Home health care fraud continues to plague the DFW area. This office will continue to aggressively investigate and prosecute anyone trying to defraud Medicare and other public health care programs.”

          “This takedown is a warning to fraudsters that their crimes will be uncovered,” said C.J. Porter, Special Agent in Charge of the Dallas Regional Office of the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “Along with our law enforcement partners, we will work to ensure that criminals who orchestrate these schemes are brought to justice.”

          A federal criminal complaint is a written statement of the essential facts of the offense charged, and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The U.S. Attorney’s office has 30 days to present the matter to a grand jury for indictment. The maximum statutory penalty for the health care fraud offense charged against Rizvi is 10 years in federal prison and a $250,000 fine. The investigation is being conducted by Special Agents with HHS. Assistant U.S. Attorney Douglas Brasher is in charge of the prosecution.

          Rizvi’s arrest is part of the largest ever health care fraud enforcement action by the Medicare Fraud Strike Force, announced today by Attorney General Jeff Sessions and HHS Secretary Alex M. Azar III. Today’s enforcement actions involves 601 charged defendants across 58 federal districts, including 165 doctors, nurses and other licensed medical professionals, for their alleged participation in health care fraud schemes involving approximately $2 billion in false billings to Medicare, Medicaid, TRICARE (a health insurance program for members and veterans of the armed forces and their families), and private insurance companies. Of those charged, over 162 defendants, including doctors, were charged for their roles in prescribing and distributing opioids and other dangerous narcotics. In addition, HHS announced today that from July 2017 to the present, it has excluded 2,700 individuals from participation in Medicare, Medicaid, and all other Federal health care programs, which includes 587 providers excluded for conduct related to opioid diversion and abuse.

          “Health care fraud is a betrayal of vulnerable patients, and often it is theft from the taxpayer,” said Attorney General Sessions. “Today the Department of Justice is announcing the largest health care fraud enforcement action in American history. This is the most fraud, the most defendants, and the most doctors ever charged in a single operation—and we have evidence that our ongoing work has stopped or prevented billions of dollars’ worth of fraud. I want to thank our fabulous partners with the FBI, DEA, our Health Care Fraud task forces, HHS, the Defense Criminal Investigative Service, IRS Criminal Investigation, Medicare, and especially the more than 1,000 federal, state, local, and tribal law enforcement officers from across America who made this possible. By every measure we are more effective at finding and prosecuting medical fraud than ever.”

          “Every dollar recovered in this year’s operation represents not just a taxpayer’s hard-earned money—it’s a dollar that can go toward providing healthcare for Americans in need,” said HHS Secretary Azar. “This year’s Takedown Day is a significant accomplishment for the American people, and every public servant involved should be proud of their work.”

          Additional documents related to this announcement are available at: https://www.justice.gov/opa/documents-and-resources-june-28-2018

 

# # #

         DALLAS —Design Plastering West LLC, a New Mexico domestic limited liability company (LLC), was sentenced today before United States District Judge Ed Kinkeade of an Occupational Safety and Health Act (OSHA) violation causing death to an employee, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.  As a part of Design Plastering West LLC’s sentencing, the company was ordered to pay a $150,000 criminal fine and $100,000 civil penalty, admit to eight willful violations of OSHA regulations, and be monitored for four years by an OSHA compliance expert.
             
          According to court documents filed, on May 24, 2018, Design Plastering West LLC pled guilty to a one-count information. 

          Design Plastering West LLC, a subcontractor, contracted to complete work at the Maple District Loft, a project in Dallas, Texas.  Design Plastering West LLC employed Jorge Carrion Torres to complete stuccowork.  On May 14, 2015, Mr. Torres died when he fell approximately 23 feet from the third floor balcony of that project.  Design Plastering West LLC admitted the third floor balcony where Mr. Torres was working did not have the proper fall protections, such as guardrail systems, safety net systems, or personal fall arrest systems.  Design Plastering West LLC admitted to failing to provide fall protection and that such failure caused the death of Mr. Torres. 
           
            The investigation was conducted by Department of Labor, Occupational Safety and Health Administration.  Assistant U.S. Attorney Kate Rumsey is in charge of the prosecution and was assisted by attorneys from the Department of Labor, Office of the Solicitor.

                                                                                                                                      # # #

A federal jury found one physician and two nurses guilty today of health care fraud, and one physician and one nurse guilty of conspiracy to commit health care fraud, all for their roles in a home health fraud scheme.

Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Erin Nealy Cox of the Northern District of Texas, Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Region, Special Agent in Charge Eric Jackson of the FBI’s Dallas Field Office and Director of Law Enforcement David Maxwell of the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU) made the announcement. 

After a five-day trial, Kelly Robinett, M.D., 70, of Denton County, Texas; and Kingsley Nwanguma, 47, of Dallas County, Texas were each convicted of one count of conspiracy to commit health care fraud.  In addition, Robinett and Nwanguma were each convicted of three counts of health care fraud, and Joy Ogwuegbu, 42, of Collin County, Texas was convicted of four counts of health care fraud.  Sentencing before U.S. District Judge Reed O’Connor of the Northern District of Texas, who presided over the trial, has not yet been scheduled. 

“Medical professionals Kelly Robinett, Kingsley Nwanguma, and Joy Ogwuegbu engaged in a multimillion-dollar scheme to defraud the taxpayer-funded Medicare program by certifying patients for medically unnecessary home health services and falsifying medical records to hide their crimes,” said Acting Assistant Attorney General Cronan.  “The Criminal Division and our law enforcement partners are committed to protecting taxpayer dollars by vigorously pursuing medical professionals and anyone else who seeks to profit off our federal health programs through fraud and deceit.” 

“The significance of this case highlights the responsibility healthcare workers, especially physicians and nurses, have to protect not only their patients, but prevent fraud against any federal health insurance program during the performance of their duties,” said Eric K. Jackson, FBI Dallas Special Agent-In-Charge. “Their decision to undertake this level of fraud against the government is something that the FBI will always make a priority to investigate and bring to justice those who would use their influential positions and their access for personal gains.”

“All patient care decisions must be based on legitimate assessments of medical need,” said CJ Porter, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services.  “In this case, decisions revolved around a fraud scheme to enrich the defendants.  The Office of Inspector General, with our enforcement partners, will continue to pursue prosecutions of this nature to protect federal health care program dollars.”

According to evidence presented at trial, from 2007 through 2015, Robinett, Nwanguma, and others, engaged in a scheme to defraud Medicare by submitting and causing the submission of false and fraudulent claims to Medicare, through Timely Home Health Services Inc. (Timely), a home health agency, and Boomer House Calls, a physician house call company.  The evidence presented at trial showed that Robinett, a doctor of osteopathic medicine, certified Medicare beneficiaries—whom he had never seen and did not care to see—for medically unnecessary home health services that were often not provided.  The evidence further established that Ogwuegbu, a registered nurse, falsified nursing assessments and Nwanguma, a licensed vocational nurse, falsified nursing notes, to make it appear as if Medicare beneficiaries were qualified for and were provided skilled nursing services.   

Evidence at trial demonstrated that Timely billed Medicare for over $11.3 million for home health services purportedly provided to Timely’s patients, some of which was attributable to certifications Robinett signed.  Robinett’s company Boomer House Calls billed Medicare approximately $1 million for medically unnecessary home health certifications and services and physician’s home visits. 

Four other defendants, have been convicted in this matter and in a related case.  Shawn Chamberlain, PA, 48, of Collin County; Angel Claudio, MD, 61, of Hood County; Usani Ewah, RN, 59, of Dallas County; and Patience Okoroji, 60, of Dallas County, previously pleaded guilty and are awaiting sentencing.         

This case was investigated by the HHS-OIG, FBI, and MFCU.  Assistant Deputy Chief Adrienne Frazior and Trial Attorneys Aleza Remis and Christina Liu of the Criminal Division’s Fraud Section are prosecuting the case. 

The Medicare Fraud Strike Force operations are part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.  The Medicare Fraud Strike Force operates in nine locations nationwide.  Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,500 defendants who collectively have falsely billed the Medicare program for over $12.5 billion. 

DALLAS – A federal jury found one physician and two nurses guilty today of health care fraud, and one physician and one nurse guilty of conspiracy to commit health care fraud, all for their roles in a home health fraud scheme.

            U.S. Attorney Erin Nealy Cox of the Northern District of Texas, Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Region, Special Agent in Charge Eric Jackson of the FBI’s Dallas Field Office and Director of Law Enforcement David Maxwell of the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU) made the announcement. 

          After a five-day trial, Kelly Robinett, M.D., 70, of Denton County, Texas; and Kingsley Nwanguma, 47, of Dallas County, Texas were each convicted of one count of conspiracy to commit health care fraud.  In addition, Robinett and Nwanguma were each convicted of three counts of health care fraud, and Joy Ogwuegbu, 42, of Collin County, Texas was convicted of four counts of health care fraud.  Sentencing before U.S. District Judge Reed O’Connor of the Northern District of Texas, who presided over the trial, has not yet been scheduled. 

          “Medical professionals Kelly Robinett, Kingsley Nwanguma, and Joy Ogwuegbu engaged in a multimillion-dollar scheme to defraud the taxpayer-funded Medicare program by certifying patients for medically unnecessary home health services and falsifying medical records to hide their crimes,” said Acting Assistant Attorney General Cronan.  “The Criminal Division and our law enforcement partners are committed to protecting taxpayer dollars by vigorously pursuing medical professionals and anyone else who seeks to profit off our federal health programs through fraud and deceit.” 

          “The significance of this case highlights the responsibility healthcare workers, especially physicians and nurses, have to protect not only their patients, but prevent fraud against any federal health insurance program during the performance of their duties,” said Eric K. Jackson, FBI Dallas Special Agent-In-Charge. “Their decision to undertake this level of fraud against the government is something that the FBI will always make a priority to investigate and bring to justice those who would use their influential positions and their access for personal gains.”

          “All patient care decisions must be based on legitimate assessments of medical need,” said CJ Porter, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services.  “In this case, decisions revolved around a fraud scheme to enrich the defendants.  The Office of Inspector General, with our enforcement partners, will continue to pursue prosecutions of this nature to protect federal health care program dollars.”

          From 2007 through 2015, Robinett, Nwanguma, and others, engaged in a scheme to defraud Medicare by submitting and causing the submission of false and fraudulent claims to Medicare, through Timely Home Health Services Inc. (Timely), a home health agency, and Boomer House Calls, a physician house call company.  The evidence presented at trial showed that Robinett, a doctor of osteopathic medicine, certified Medicare beneficiaries—whom he had never seen and did not care to see—for medically unnecessary home health services that were often not provided.  The evidence further established that Ogwuegbu, a registered nurse, falsified nursing assessments and Nwanguma, a licensed vocational nurse, falsified nursing notes, to make it appear as if Medicare beneficiaries were qualified for and were provided skilled nursing services.   

          Evidence at trial demonstrated that Timely billed Medicare for over $11.3 million for home health services purportedly provided to Timely’s patients, some of which was attributable to certifications Robinett signed.  Robinett’s company Boomer House Calls billed Medicare approximately $1 million for medically unnecessary home health certifications and services and physician’s home visits. 

          Four other defendants, have been convicted in this matter and in a related case.  Shawn Chamberlain, PA, 48, of Collin County; Angel Claudio, MD, 61, of Hood County; Usani Ewah, RN, 59, of Dallas County; and Patience Okoroji, 60, of Dallas County, previously pleaded guilty and are awaiting sentencing. 

          This case was investigated by the HHS-OIG, FBI, and MFCU.  Assistant Deputy Chief Adrienne Frazior and Trial Attorneys Aleza Remis and Christina Liu of the Criminal Division’s Fraud Section are prosecuting the case. 

          The Medicare Fraud Strike Force operations are part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.  The Medicare Fraud Strike Force operates in nine locations nationwide.  Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,500 defendants who collectively have falsely billed the Medicare program for over $12.5 billion. 

 

###

          LUBBOCK, Texas — In a collaborative effort spearheaded by the Caprock HIDTA (Hi-Intensity Drug Trafficking Area) Task Force, and the Texas (Lubbock) Anti-Gang Center (TAG), 20 individuals are in federal custody on a federal criminal indictment for a drug trafficking conspiracy, announced Erin Nealy Cox, U.S. Attorney for the Northern District of Texas.  Those defendants arrested yesterday or in custody on other charges are:

Jose Garcia-Lizanaga, also known as “Chepe”, 43, Lubbock

Jorge Luis Lizarraga-Tirado, also known as “Luis” or “Barba”, 30, Mexican citizen

Antonio Alvarez, Jr., also known as “Tony”, 42, Lubbock

Eduardo Agustin Cruz, also known as “Lalo”, 41, Lubbock

Robert Lee Melendez, also known as “Roberto”, 26, Meadow

Jesus Marcus Franco, also known as “Jesse”, 34, Brownfield

Juana Sanchez, also known as “Juana Salazar” or “Jaime”, 41, Littlefield

Richard David Hupper, also known as “Piraton”, 42, Pennsylvania

Andrew Doyal Pugh, 29, Alabama

Gregory Holleman, also known as “G”, 50, Lubbock

Saul Chavira-Molina, 25, Kansas

Jermaine Edgar Garmon, 40, Lubbock

Shad Everett Evans, 42, Brownfield

Arturo Sanchez, 39, Lubbock

Petra Maria Sauceda-Perez, also known as “Aunt” or “Tia”, 38, Fabens, Texas

Kim Herrera, 27, Lubbock

Jessica Angel Deleon, 34, Lubbock

Broderick Bradley, 35, Lubbock

Ambrosio Garcia, Jr., also known as “Bocho”, 33, Lubbock

Ambrosio Garcia-Rodriguez, Sr., 58, Mexican citizen

            “This is just an example of the amazing results that have come, and will come, by uniting federal, state, and local law enforcement in fighting drug trafficking in West Texas.  By adopting the ‘one mission, one team’ approach to narcotics, violent crime, and gang enforcement, the HIDTA and TAG will produce exceptional results for the people of the South Plains,” stated U.S. Attorney Nealy Cox.

            The indictment was returned by a federal grand jury in Lubbock, Texas earlier this month, and unsealed yesterday, charging 20 individuals in a conspiracy to distribute and possess with intent to distribute methamphetamine, cocaine, and marijuana; distribution and possession with intent to distribute methamphetamine, cocaine, cocaine base, and marijuana; unlawful use of a communications facility; and bulk cash smuggling.  Fifteen of those defendants were arrested yesterday, five were already in custody at the Lubbock County Detention Center on related state charges.

            As a result of this operation, law enforcement seized approximately one pound of cocaine, five pounds of hydroponic marijuana, five firearms, twelve vehicles, and a recreational vehicle.

            Most of the defendants arrested will make their initial appearances in federal court before United States Magistrate Judge D. Gordon Bryant, Jr.

            According to the indictment, the defendants engaged in a conspiracy to distribute cocaine and other illegal narcotics throughout West Texas and elsewhere.  The indictment further alleges that from approximately January 2018 through June 2018, the defendants conspired together, and with others, to possess with intent to distribute 500 grams or more of methamphetamine; five kilograms or more of cocaine, and marijuana. 

            A federal criminal indictment is a written statement of the essential facts of the offense charged.  A defendant is entitled to the presumption of innocence until proven guilty. If convicted, the defendant’s sentence will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record, the defendant’s role in the offense and the characteristics of the violation.

            The Caprock HIDTA Task Force and TAG are comprised of agents from the Drug Enforcement Administration, Homeland Security Investigations, the Texas Department of Public Safety, the Lubbock County Sheriff’s Office, and the Lubbock Police Department.  The United States Marshals Service, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Homeland Security Investigations-Enforcement and Removal Operations, the Hockley County Sheriff’s Office, the Terry County Sheriff’s Office, the Brownfield Police Department, and the Levelland Police Department rendered invaluable assistance in the operation.  The Drug Enforcement Administration offices in Midland and El Paso, and the El Paso County Sheriff’s Office were instrumental in assisting with those individuals located in other jurisdictions.

            This case is being prosecuted by Assistant U.S. Attorney Sean Long.

 

# # #

          DALLAS — William Laurence Stanley, 54, of Dallas, Texas, a self-proclaimed black hat search engine optimizer and reputation manager was sentenced June 12, 2018, by U.S. District Judge Sidney A. Fitzwater to serve 97 months in federal prison and ordered to pay $5,605,226 in restitution, following a five-day trial in April 2017, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.  

          Stanley was previously sentenced in January 2016 to 37 months in federal prison for extorting money from a Dallas-based business (victim company) and ordered to pay $174,888 in restitution to the numerous victims of his extortive conduct in U.S. v. William Laurence Stanley, 3:14-CR-113-N. 

          According to evidence presented in the April 2017 trial, Stanley began planning his retaliation while serving his prison sentence on the extortion conviction.  From September through sometime in October 2016, Stanley, knowingly and with the intent to retaliate against a person for providing law enforcement information about the commission of a federal offense, posted false or derogatory comments or reviews online about the victim company.

          Between September 8, 2016 and October 10, 2016, Stanley posted derogatory online articles/blogs/complaints intended to portray the victim company in a negative light.  Stanley posted the retaliatory data on Facebook.com, Glassdoor.com, ShaggyTexas.com, 800notes.com, callsreceived.com, Yelp.com, Blogspot.com, and Wordpress.com.  Several of the articles/blogs/complaints had titles and photographs added to place the victim company in a negative light.  Stanley also encouraged others to duplicate the negative content in as many places as possible.

          Evidence during the trial established that a company’s reputation is based on the hard work, integrity, and dedication of more than hundreds of associates nationwide.  The victim company repeatedly earned and received top honors and awards in its industry.  Stanley’s retaliatory conduct caused extensive harm to its reputation.

          The Federal Bureau of Investigation investigated the case. Assistant U.S. Attorney C.S. Heath prosecuted.     

# # #

          DALLAS— Manuel Medina-Valdes, 25, of Mesquite, Texas, was sentenced Friday, June 15, 2018, by Chief U.S. District Judge Barbara M.G. Lynn to 240 months in federal prison for his role in the distribution of methamphetamine, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.

          Medina-Valdes has been in custody since his arrest in December 2016.  He pleaded guilty in June 2017 to one count of possession with intent to distribute methamphetamine.

          According to the plea agreement factual resume filed in the case, on December 13, 2016, Drug Enforcement Administration agents executed a federal search warrant at Medina-Valdes’s residence in Mesquite, Texas.  Agents seized two sets of keys on a nightstand, numerous detailed drug ledgers, and an air respirator mask.  The keys seized from Medina-Valdes’s residence unlocked the home’s front door and a guest room’s closet door.  After unlocking the closet door, agents found approximately seven kilograms of methamphetamine, miscellaneous methamphetamine lab re-crystallization equipment, drug packaging, approximately $15,000, five handguns and ammunition.  Additionally, agents located a Mexican passport for Medina-Valdes and multiple Home Depot and Walmart receipts for acetone, propane, and plastic containers, which are used recrystallizing methamphetamine. 

          The Drug Enforcement Administration led the investigation, with assistance from the Rockwall Police Department, Garland Police Department, and Allen Police Department.  Assistant U.S. Attorney Suzanna Etessam was in charge of the prosecution.

# # #

          DALLAS— Following a two-day trial, a federal jury convicted Eric Gerard McGinnis, 42, of Grand Prairie, Texas, of multiple firearm offenses, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.

          Specifically, on Wednesday, a federal jury convicted McGinnis of possessing an unregistered short barrel rifle and unlawfully possessing ammunition while he was subject to an active protective order.  McGinnis will remain in custody pending sentencing, which is set for October 24, 2018, before U.S. Chief District Judge Barbara M.G. Lynn.

          According to evidence presented at trial, a Dallas County court entered a two-year protective order against McGinnis on August 31, 2015, finding that he had committed family violence against a former girlfriend with whom he had lived.  The protective order also prohibited him from possessing firearms or ammunition.

            On July 28, 2017, officers from the Grand Prairie Police Department responded to the sound of gunshots in a wooded area near North Belt Line Road and East Palace Parkway.  There they found McGinnis carrying a backpack that contained an AR-15 rifle that had a receiver made using a 3D printer and had a barrel that was only ten inches long.  He also possessed 88 rounds of ammunition for the rifle.  McGinnis did not have the short barrel rifle registered to him in the National Firearm Registration and Transfer Record, which is the repository for registrations for weapons that must be registered under the National Firearms Act. 

          The evidence presented at trial also showed that McGinnis had attempted to purchase a receiver from a federal firearms licensee in 2016, but the transaction required a background check that rejected McGinnis based on the active protective order.

        The defendants’ sentence will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record, the defendant’s role in the offense and the characteristics of the violation. 

          The Bureau of Alcohol, Tobacco, Firearms, and Explosives and Grand Prairie Police Department investigated the case.  Assistant U.S. Attorneys Brian McKay and Rick Calvert are prosecuting the case.

# # #

          DALLAS—Christopher A. Faulkner, 41, from Dallas, Texas, was arrested Monday, June 18, 2018, at the Los Angeles International Airport by special agents with the Internal Revenue Service-Criminal Division (IRS-CI), Federal Bureau of Investigation (FBI), with assistance from Customs and Border Patrol.  Faulkner was arrested on a federal complaint, charging him with securities fraud, mail fraud and money laundering, in connection with a scheme to defraud investors of millions of dollars.  The announcement was made today by U.S. Attorney Erin Nealy Cox of the Northern District of Texas.

          Faulkner made an appearance Monday in Los Angeles, California before a U.S. Magistrate Judge and will remain in custody pending further court hearings in Dallas, Texas.

          According to the filed criminal complaint affidavit, between 2011 and 2016, Faulkner established and controlled several oil and gas companies located in Texas.  On April 28, 2016, the IRS-CI and FBI executed search warrants and seized documents and electronic data from Breitling Oil and Gas Inc., Crude Energy, LLC and Patriot Energy, Inc., offices located in Dallas, Texas. 

          According to the criminal complaint affidavit, as part of the scheme to defraud investors, Faulkner made fraudulent misrepresentations to investors and raised over $62.6 million in investor funds through the sale of working interest units in 16 drilling prospects. 

          The affidavit alleges Faulkner’s companies marketed the working interest programs using multiple forms of misrepresentations, to include the hyperinflation of reasonable estimated costs to drill and test the well, which resulted in huge undisclosed profits to Faulkner’s companies.  Well operators for each of Faulkner’s prospects created a written estimate of costs to drill a well in the form of an “Authority for Expenditure” (“AFE”) and provided these to Faulkner.  However, these estimates were never included in the offering materials provided to investors.  Instead, examination of emails and Faulkner’s computer, seized from his office, showed he commonly created AFEs in the name of the operator, but grossly inflated the estimated costs.

          Additionally, the affidavit claims Faulkner made fraudulent misrepresentations to investors by having oversold many of the programs the company offered, and used inflated reports and production estimates supplied by a third party geologist.  An examination of Faulkner’s seized computer and emails, revealed Faulkner was closely affiliated to the third party geologist and increased the already inflated estimates. 

          The affidavit further alleges that substantially all the investor money was transferred from segregated well accounts into general and operating bank accounts.  Faulkner diverted significant amounts of investor funds for his own benefit while investors received minimal returns on their investment. 

          According to the affidavit, between 2011 and 2013, Breitling received investments totaling $41.4 million.  However, the investors received less than $2.4 million of their initial investment.  Faulkner, during this same period of time, received approximately $8 million in cash disbursements from Breitling.  In addition to these direct cash payments, Faulkner also received at least $1.9 million of additional benefits by virtue of Breitling paying for personal expenses on credit cards and more than $2 million of investor funds on personal expenses in direct charges to its bank accounts.

          Additionally, the affidavit states, in 2014 and 2015, Faulkner, by virtue of Crude Energy, LLC and Patriot Energy, Inc., diverted $13.8 million of commingled investor funds by means of $6.1 million in cash disbursements and approximately $7.7 million in personal American Express card charges.  Additionally, the companies also paid more than $4 million in personal expenses through its bank accounts.

          The complaint alleges Faulkner used the investor money to finance a lavish lifestyle that included high end vehicles, expensive jewelry, clothing, art, home improvements, professional concierge services, and chartered flights.

          A federal criminal complaint is a written statement of the essential facts of the offense charged, and must be made under oath before a magistrate judge.  A defendant is entitled to the presumption of innocence until proven guilty.  The U.S. Attorney’s office has 30 days to present the matter to a grand jury for indictment.  The maximum statutory penalty for the charged offenses is 35 years in federal prison and a $750,000 fine.

          The investigation is being conducted by the Internal Revenue Service-Criminal Division, Federal Bureau of Investigation and U.S. Postal Inspection Service.  Assistant U.S. Attorney Christopher Stokes is in charge of the prosecution.

# # #

           DALLAS, Texas — United States Attorney Erin Nealy Cox announced today the appointment of Rebekah Ricketts as a new Assistant United States Attorney.  Ms. Ricketts was sworn in today before Chief Judge Barbara M. G. Lynn.  Ms. Ricketts is assigned to the Violent and Major Crimes Section of the office’s Criminal Division.

          Ms. Ricketts joins the U.S. Attorney’s Office from Gibson, Dunn & Crutcher LLP, where she was a senior litigation associate.  Previously, Ms. Ricketts served clerkships for U.S. District Judge Richard Sullivan in the Southern District of New York, Judge Jose Cabranes on the U.S. Court of Appeals for the Second Circuit, and Justice Clarence Thomas on the U.S. Supreme Court.  Ms. Ricketts received her undergraduate degree from the University of Texas and her law degree from Yale University.

          “It’s my privilege to lead an office filled with incredibly talented and dedicated people who work tirelessly to carry out our mission of justice and fulfill our promise to the people of our community,”  said U.S. Attorney Nealy Cox.  “We are proud to welcome Rebekah Ricketts to our office.  I know she will make an immediate impact in our District and serve the citizens of the United States with honor and distinction.”

# # #

     

            DALLAS — Javier Contreras Vargas, aka “Cuñado,” a citizen of Mexico and in the United States illegally, was sentenced Monday, June 11, 2018, before U.S. District Judge David C. Godbey for his role in a methamphetamine distribution conspiracy, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas. 

                 Vargas was sentenced to 235 months in federal prison following his guilty plea in August 2017, to one count of conspiracy to possess with intent to distribute and to distribute a schedule II controlled substance.  He was in the United States illegally at the time of the offense and will be deported after serving his sentence.  Vargas has been in custody since his arrest in August 2016. 

                Vargas was charged along with twenty-one others with various offenses related to a methamphetamine distribution conspiracy.  Of the twenty-one charged, two are awaiting trial. 

                According to documents filed in the case, between January 1, 2015, and July 7, 2015, Vargas and his coconspirators conspired to distribute methamphetamine and used coded language to purchase multiple kilograms of the illegal substance so that he could distribute the drug to other people. 

               On July 7, 2015, law enforcement conducted a traffic stop and Vargas was found to be in possession of 2 kilograms of methamphetamine.  Officers subsequently searched his residence and found approximately 17 kilograms of methamphetamine.  Law enforcement also seized a firearm, and several thousand dollars in United States currency.  As part of the plea agreement, Vargas agreed to forfeit the items seized, including the firearm and $25,137.00.

               The Federal Bureau of Investigation investigated, with assistance from the Dallas Police Department and the Internal Revenue Service Criminal Investigations Division.  Assistant U.S. Attorney George Leal prosecuted.           

# # #

FBI Agent Sentenced for Falsifying Information When Applying for a Passport

            El PASO, Texas — Rhonda Lynn Chesser Lindstrom, 41, formerly of El Paso, Texas was sentenced Thursday, June 7, 2018, by Senior U.S. District Judge David Briones to four years probation and a $1,000 fine, on each count of the indictment, said terms to run concurrent, and to home confinement for a period of six months, following a four-day trial in March 2018, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.

            Chesser Lindstrom was found guilty on three counts of false statement in application for a passport.  In sentencing, the Court found Chesser Lindstrom had willfully obstructed justice.

Because Chesser Lindstrom worked as a Special Agent in the El Paso FBI office, and presented cases to the Western District of Texas U.S. Attorney’s office, the Western District of Texas Assistant U.S. Attorneys were recused, and Northern District of Texas Assistant U.S. Attorney Paulina Jacobo was appointed as a Special Attorney to the Attorney General.

            According to evidence presented at trial, on June 10, 2014, Chesser Lindstrom personally appeared at the United States Department of State, El Paso Passport Agency (EPPA), and submitted an Application for a U.S. Passport.  As required by the application, Chesser Lindstrom provided as proof of citizenship a State of Louisiana Birth Certificate issued on August 22, 2011.  The date of birth on the birth certificate was August 26, 1977.  As proof of identity, Chesser Lindstrom provided a State of Maryland Driver’s License with a date of birth of August 26, 1977.

            A Passport Specialist conducted a thorough and detailed review of Chesser Lindstrom’s Passport Application, and noticed that the birth certificate appeared to have been altered.  Specifically, the birth certificate showed clear signs of handwritten alterations in three places, the birth number, birth date, and the file date.  The birth certificate had erasures and numbers rewritten in the three places.  Since it was obvious that the birth certificate was altered, the case was referred to the Fraud Prevention Manager (FPM).

            On June 12, 2014, the Passport Application was further reviewed by the Fraud Prevention Office to verify all information submitted by Chesser Lindstrom.  The results of the review indicated that Lindstrom’s correct date of birth was August 26, 1976; no record was found of a Rhonda Chesser born on August 26, 1977, as indicated on the birth certificate she provided to the EPPA. 

            The EPPA asked for additional information and Chesser Lindstrom provided additional false documents after enticing her older sister to participate in creating those documents.

      The Department of Justice Office of Inspector General investigated the case, assisted by the U.S. Department of State, Diplomatic Security Service, Criminal Fraud Investigations, and the United States Department of State, El Paso Passport Agency Program Fraud Office investigated.  Assistant U.S. Attorneys Paulina Jacobo and Chris Wolfe prosecuted. 

# # #

          DALLAS — Noel Guest, 62, of Mabank, Texas, was sentenced last week by U.S. District Judge Jane J. Boyle to 240 months in federal prison, following his guilty plea in November 2016 to transportation and shipment of child pornography, announced Erin Nealy Cox, United States Attorney for the Northern District of Texas.

          Guest has been in custody since his arrest in May 2016.

          According to the factual resume filed in the case, the Federal Bureau of Investigation (FBI) was investigating a specialized peer-to-peer file-sharing program (P2P) in an undercover capacity.  This specialized P2P program functions as a closed network similar to Facebook, where users choose who to invite into their network and what to share with their invited contacts. 

          On May 13, 2016, a search warrant was executed at Guest’s residence in Mabank, Texas and agents seized several electronic devices.  A forensic examination revealed that the electronic devices contained over 602 images of child pornography and 2 videos of child pornography.  The examination also revealed that Guest chatted with other like-minded individuals on the P2P network to obtain their passwords for their shared materials and that he also traded child pornography with them by providing them with the password to his child pornography collections and that Guest made available approximately 4344 shared files of child pornography. 

          The case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood leverages federal, state and local resources to better investigate, apprehend and prosecute individuals who sexually exploit children. Project Safe Childhood also prioritizes identifying and rescuing victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”

            The Federal Bureau of Investigation and the Plano Police Department investigated the case.  Assistant U.S. Shane Read prosecuted.

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          FORT WORTH, Texas — Thomas Cody, of Stephenville, Texas, Chalee Campbell, of Fort Worth, Texas, Jacob Hendricks, aka, “Jake Hendricks, “of Clifton, Texas, Terry McConathy, of Benbrook, Texas, Rebecca Mullins, of Stephenville, Texas, and Christal Walker, of De Leon, Texas, are in federal custody following their arrests May 29, 2018, on federal drug conspiracy charges, announced Erin Nealy Cox, U.S. Attorney for the Northern District of Texas. 

            The defendants were all charged with one count of conspiracy to possess with the intent to distribute a controlled substance, and made their initial appearance Tuesday, May 30, 2018, before U.S. Magistrate Judge Jeffrey Cureton.   

            According to the Complaint filed on May 10, 2018, from approximately July 2017 through January 2018, the defendants conspired together, and with others, to possess with the intent to distribute 50 grams or more of methamphetamine throughout the Northern District of Texas and elsewhere.  Members of the conspiracy had a fluid hierarchy that evolved over time.  Some of the money derived from the sale and distribution of the methamphetamine was used to purchase additional quantities of methamphetamine. 

            A complaint is a written statement of the essential facts of the offense charged and must be made under oath before a magistrate judge.  A defendant is entitled to the presumption of innocence until proven guilty. The government has 30 days to present the matter to a grand jury for indictment.  The maximum statutory penalty for the offense charged is 40 years in federal prison and a $5,000,000 fine.         

            The Drug Enforcement Administration and Stephenville Police Department are in charge of the investigation and Assistant United States Attorney Shawn Smith is in charge of the prosecution.

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          ABILENE — Edalia Martinez Oliver, 44, of Woodson was sentenced Friday, May 25, 2018, by Senior U.S. District Judge Sam R. Cummings to serve a total of 12 months in federal prison, and ordered to pay restitution in the amount of $41,992.20, following her guilty plea in February 2018 to Bank Theft from the First State Bank Graham (Texas), in Woodson Texas, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.

          Oliver pleaded guilty to one count of Bank Theft; that is, to take and carry away, with intent to steal and purloin, money in an amount exceeding $1,000.00 belonging to, and in the care, custody, control, management, and possession of First State Bank Graham (Texas), Woodson, Texas, a bank whose deposits were insured by the Federal Deposit Insurance Corporation. 

             According to documents filed in the case, on June 29, 2017, FSB management conducted a surprise teller and vault cash audit at its Woodson branch.  Oliver told FSB management that there would be money missing out of the vault.  Upon completion of the cash audit, FSB learned that $38,592.20 was missing.  On June 29 and 30, 2017, Oliver admitted to FSB management and the Sheriff of Throckmorton County, Texas that she had stole the money to gamble and had a gambling problem. 

        The FBI and Throckmorton County Texas Sheriff’s Office investigated the case.  Assistant U.S. Attorneys Jeffrey Haag and Beverly Chapman were in charge of the prosecution.

 

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FORT WORTH, Texas — Yesterday, following a two-day trial, a federal jury convicted David Williams, 54, of Fort Worth, Texas on four counts of Healthcare Fraud, announced Erin Nealy Cox, U.S. Attorney for the Northern District of Texas.

Each healthcare fraud count carries a statutory penalty of 10 years in federal prison and a $250,000 fine.  Williams is scheduled to be sentenced by U.S. District Judge Reed O’Connor on August 27, 2018.

According to evidence presented at trial, between November 2012 through August 2017, Williams advertised on his website, getfitwithdave.com that he offered in-home fitness training and therapy through his company, “Kinesiology Specialists.”  Williams identified himself as “Dr. Dave” and stated that he served clients in most of Texas, Las Vegas, Denver, Tucson, Seattle, and Orlando.  Through his website, Williams told potential clients that he was accepting most health care insurance coverage plans.

In order to bill insurance companies for his services, Williams registered as a health care provider with the Centers for Medicare and Medicaid Services.  In completing the application, Williams falsely certified that he was a health care provider.  Williams enrolled as a health care provider at least twenty times under different names or variations of his name and his company names and falsely certified that he was a health care provider in each application.  Williams would then bill the insurance companies as if he were a medical physician and as if he had provided care requiring medical decision making of high complexity when Williams actually provided fitness and exercise training to his clients.

Williams recruited potential clients through the use of flyers, the internet, and word-of-mouth, according to evidence presented at trial.  Once recruited, Williams would typically meet with or speak with the new client over the phone and review their health history and goals for their planned fitness training.  Williams would then typically assign a personal trainer to that individual.  The personal trainer typically met with the client between one and three times a week for approximately one hour and provided fitness training.  Williams would then bill insurance companies for each training session using inaccurate codes and on certain occasions, billed for services that neither he nor his staff, ever provided.

Between November 2012 through August 2017, Williams was paid in excess of $3.9 million in relation to his fraudulent billing of United HealthCare Services, Inc., Aetna, Inc., and Cigna.  

The Federal Bureau of Investigation investigated the case jointly with the Texas Department of Insurance, Fraud Unit.  Assistant U.S. Attorneys P.J. Meitl and Nicole Dana prosecuted.

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DALLAS — Gary Ronald Morris, 69, of McKinney, Texas, appeared in federal court yesterday before U.S. Magistrate Judge Rene Toliver and pleaded guilty to one count of wire fraud, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.

The filed Information alleged that during the period from at least 2008 through 2016, Morris owned and operated Greystone Digital Technologies, Inc. and Kiboga Systems Inc., based in Addison, Texas and registered in the state of Texas.  Morris represented that Greystone developed and manufactured large bore cargo scanners capable of scanning cargo containers, and that Kiboga developed and maintained software that operated the large bore cargo scanners.  It was also alleged that Morris falsely represented to investors that he completed his design and had actually built a fully functional “cargo scanner ”, and that this new “cargo scanner” had been built, tested and demonstrated a capacity to successfully scan vehicles, trucks, cargo containers, and other items for the detection of drugs, explosives and other contraband.  In furtherance of the scheme, Morris made false representations to investors that he needed and used investor funds to finance the continued development of the software program for the cargo scanner.

The wire fraud count also alleged that the vast majority of the investor funds were used for Morris’ personal expenses and to support his lavish lifestyle.  Among other things, Morris used investor funds for travel, to purchase luxury automobiles and two residences with a total value of nearly $1 million and as the source of funds for hundreds of thousands of dollars in cash withdrawals.

In his filed plea papers, Morris admitted that he engaged in a scheme to defraud investors for an extended period, from at least 2008 through 2016.  Morris also admitted that as part of this scheme he made a series of false representations to investors in order to conceal from investors the true state of the business of Greystone Digital Technologies.  Morris deceived investors in order to avoid demands for refunds of invested funds or possible lawsuits from investors.  Specifically, Morris used a fraudulent email to falsely represent to investors that Greystone employees were physically on site and working on the cargo scanner project at the Federal Express facility in Memphis, Tennessee.  In this fraudulent email, Morris also falsely represented that Greystone employees were engaged in ongoing activity with Federal Express employees focused on the development of a cargo scanner.

Morris faces a maximum penalty of imprisonment not to exceed twenty years and a $250,000 fine. Restitution could also be ordered.  Sentencing has not been set.

The investigation was conducted by the Wichita Falls office of the Federal Bureau of Investigation and Assistant U.S. Attorney David Jarvis is in charge of the prosecution.

 

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DALLAS — An Irving man, David Rice, age 32, who admitted that he and his co-conspirator, Kevin Iles, committed the armed robberies of four grocery stores in June 2015, was sentenced Thursday by U.S. U.S. District Judge Jane J. Boyle to 155 months (13 years) in federal prison for conspiracy to commit Hobbs Act robbery and for a firearm offense related to the conspiracy, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.

Rice pleaded guilty in July 2017, to one count of conspiracy to interfere with commerce by robbery and to one count of using, carrying and brandishing a firearm during and in relation to a crime of violence.  He has been in custody since his arrest in October 2015.          

According to the Factual Resume filed in the case, the two committed four armed robberies in Irving and Carrollton on June 4, 2015, at the following locations:

    ALDI, Inc.                  2926 North Beltline Road, Irving TX

    TNL Superfoods         3113 North Beltline Road, Irving TX

    Rainbow USA            2311 West Interstate Highway 20, Irving TX

    Monaliza LLC            2625 Old Denton Road, Carrollton, Texas

All of these four robberies were committed in essentially the same manner, including Rice’s use and brandishing of a firearm to threaten and force store employees to comply with his demands.  On June 4, 2015, Rice paid Iles cash from the robbery proceeds for Iles’ assistance in the above referenced robberies. 

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Irving Police Department.  Assistant U.S. Attorneys Keith Robinson and Gary Tromblay prosecuted.

 

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DALLAS —Juan Mauricio Araujo, Jr., aka “Pelon”, 35, was sentenced on Monday, May 14, 2018, before U.S. District Judge David C. Godbey for his role in a methamphetamine distribution conspiracy, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.

Araujo was sentenced to 235 months in federal prison following his guilty plea in April 2017 to one count of conspiracy to possess with intent to distribute and to distribute a controlled substance, said substance being 500 grams or more of methamphetamine.  Araujo has been in custody since his arrest in September 2016.

Araujo was charged along with twenty-one others with various offenses related to a methamphetamine distribution conspiracy.  Of the twenty-one charged, two are awaiting trial. 

According to documents filed in the case, between January 1, 2015 through March 18, 2016, Araujo and his coconspirators conspired to distribute methamphetamine and on several occasions, discussed pick up and drop off plans. 

Specifically, Araujo used coded language to purchase multiple kilograms of methamphetamine so that he could distribute the methamphetamine to other people. Araujo, not being happy about the quality of a kilogram of methamphetamine, provided instruction to have the bad kilogram of methamphetamine swapped out for a better quality. 

The Federal Bureau of Investigation investigated, with assistance from the Dallas Police Department and the Internal Revenue Service Criminal Investigations Division.  Assistant U.S. Attorney George Leal prosecuted.    

 

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DALLAS — A federal grand jury has returned an Indictment charging ten individuals for their role in conspiring to traffic contraband through Dallas Fort Worth International (DFW) Airport, announced Erin Nealy Cox, U.S. Attorney for the Northern District of Texas, at a press conference today.  The law enforcement operation was led by the Federal Bureau of Investigation, the Dallas Police Department, the Internal Revenue Service Criminal Investigation, and the Dallas Fort Worth International Airport Police Department.

The Indictment, returned last week and unsealed this morning, charges Nelson Pabon, 47, Jean Loui Vargas-Malave, 28, Juan Camacho Melendez, aka “Kendo Kaponi” and “Anthony,” 22, Ruben Benitez-Matienzo, 45, Jose Luis Gaston-Rolon, 24, Joshua Israel Pagan Zapata, 21, Domingo Villafane Martinez, III, 30, Luis Javier Collazo Rosado, aka “Luisito,” 21, Michael LNU, and Cristian David Cruz-Rodriguez, 23, with one count of conspiracy to possess with intent to distribute a schedule II controlled substance.  The defendants were arrested yesterday and will make their initial appearances before a United States Magistrate Judge later this week.     

“We have zero tolerance for employees who seek to undermine and evade the security protocols at airports,” said U.S. Attorney Erin Nealy Cox.  “Smugglers are constantly seeking new ways to move illegal contraband across the country and we will do whatever necessary to thwart these criminals at every turn.  Working together with federal and local law enforcement partners, we continue to prioritize efforts to help mitigate the insider threat to aviation security.”

According to the Indictment and beginning in August 2016, the defendants acquired a substance that they believed to be methamphetamine.  They arranged for the transportation and delivery of the counterfeit drugs through the DFW Airport and onto commercial airline flights.  The defendants utilized their position of employment with companies at DFW Airport to bypass security measures and in return, they accepted payment for the transportation and delivery of the counterfeit drugs.  The defendants would also act as “look-outs” or engage in counter-surveillance to undermine police presence. 

Also during the investigation, one of the defendants stated he could transport guns via commercial airlines.  There were also discussions about transporting C-4 but the fees for transporting this type of contraband would be higher than what was charged for the smuggling of  illegal narcotics.  All told, the defendants facilitated the transportation of 66 kilograms of counterfeit drugs.  The counterfeit drugs were transported to various locations throughout the United States, including Newark Liberty International Airport in Newark, New Jersey, Charlotte Douglas International Airport in Charlotte, North Carolina, and Sky Harbor Airport in Phoenix, Arizona.

“The FBI would like to thank its local and federal partners that assisted in this investigation. This joint operation allowed us to successfully arrest ten individuals who used their positions of employment and access to compromise an aspect of airport security,” said Eric K. Jackson, FBI Dallas Special Agent-In-Charge.  “We at the FBI will continue to work diligently with our partners to ensure we aggressively investigate anyone who poses a threat to or attempts to compromise any aspect of U.S. aviation security.”

"DFW and the FBI have a strong partnership that is focused on keeping our customers and employees safe and secure, and these arrests demonstrate how well we work together,” said DFW Airport Police Chief Charles Cinquemani.  “There will always be people who attempt to access the airport for illegal activities, but we will remain vigilant by investing in security and collaboratively sharing information and resources with the FBI, TSA, Customs and Border Protection and other federal, state and local agencies.”

A federal criminal Indictment is a written statement of the essential facts of the offense charged.  A defendant is entitled to the presumption of innocence until proven guilty.  If convicted, the defendants’ sentence will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record, the defendant’s role in the offense and the characteristics of the violation. 

Assistant U.S. Attorneys George Leal, John De La Garza and John Kull are prosecuting the case.

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DALLAS, Texas — Sidney White, 21, of Dallas, Texas was sentenced Wednesday, May 2, 2018, by U.S. District Judge Ed Kinkeade to serve a total of 102 months in federal prison and ordered to pay restitution, following his guilty plea in December 2017 to two robberies of a Metro PCS store in Dallas, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.

White pleaded guilty to one count of interference with commerce by robbery and one count of using, carrying, and brandishing a firearm during and in relation to, and possessing and brandishing a firearm in furtherance of, a crime of violence.  White has been in custody since his arrest in June 2017 for a string of robberies including the ones below and others that are being handled by the Dallas County District Attorney’s Office.

According to plea documents filed in the case, on August 10, 2016, White went to a Metro PCS store located at 3106 East Illinois Avenue, Dallas, Texas and purchased a cell phone. In connection with the purchase of the cell phone, White filled out an information sheet and listed his name and address.  Two hours later, White returned to the store wearing the same clothing and told an employee that something was wrong with his phone.  White then pulled out a pistol, racked the slide, and demanded money.  Two employees emptied the cash registers and gave White approximately $1,600.00. 

On August 19, 2016, White returned to the same Metro PCS store that he had robbed on August 10th and again, pointed a gun at the employees and demanded that they give him money.  One employee gave White $112.00 from her cash register and another employee gave White $64.00 from his cash register.

The Federal Bureau of Investigation investigated the case and Assistant U.S. Attorney Shane Read is in charge of the prosecution.

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DALLAS — Rene Barrera, Sr, of Del Rio, Texas, who was one of several tax preparers at Tax Genius in Richardson, Texas, appeared in federal court Tuesday, May 8, 2018, before U.S. Magistrate Judge Irma Carrillo Ramirez and pleaded guilty to one count of aiding and assisting in the preparation of a fraudulent tax return, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.

Sentencing is set for December 14, 2018, before Chief U.S. District Judge Barbara M.G. Lynn.  Barrera faces a statutory maximum penalty of three years in federal prison and a $100,000 fine.  He may also be ordered to pay restitution. 

On September 21, 2016, Barrera and co-defendants Jimmy Luis Briseno, Mike Cano and Christopher Lee DeLeon were charged with conspiracy to defraud the IRS and other charges related to the filing of false tax returns.  According to the factual resume filed in the case, from January 2011 through April 2011, Barrera prepared and electronically filed taxes at Tax Genius in Richardson, Texas.  In his plea papers, Barrera admitted that he and other employees prepared and caused to be electronically filed with the IRS individual income tax returns that contained one or more of the following falsely inflated or fictitious items: false Forms Schedule C; false and fabricated Education Credits, and false items used to inflate and maximize the Earned Income Tax Credit (EITC) on the tax return.  During this period, Barrera and other Tax Genius employees engaged in a fraudulent scheme in which false and fraudulent information and documents were submitted to the IRS with the intent to defraud the IRS by causing the IRS to pay fraudulent refunds based on this false tax information.

Barrera caused the filing of eight false tax returns resulting in a tax loss of $67,100 due to false refunds claimed.

IRS Criminal Investigation is investigating the case.  Assistant U.S. Attorney David Jarvis is in charge of the prosecution.

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ABILENE, Texas — Following a two-day trial before Senior U.S. District Judge Sam R. Cummings, a federal jury has convicted Michael Deon Thompson, 37, of Abilene, Texas, for his role in a heroin drug conspiracy resulting in serious bodily injury, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.

Specifically, on Tuesday a federal jury convicted Thompson on one count of distribution and possession with intent to distribute heroin resulting in serious bodily injury, and one count of conspiracy to distribute and possess with intent to distribute heroin.  Judge Cummings ordered a presentence report prepared and will set a sentencing date once the presentence report is filed.  The United States filed a Notice of Enhancement based on Thompson’s three prior felony drug convictions.  If the Court finds those convictions final and valid, then, the Court must impose a sentence of life imprisonment as to the count charging distribution and possession with intent to distribute heroin resulting in serious bodily injury.  Thompson has been in federal custody since his arrest in February 2018.

“Fighting the opioid epidemic that is ravaging the Big Country and the rest of the Northern District of Texas is going to require a shared effort by law enforcement and our communities,” said U.S. Attorney Nealy Cox.  “The conviction of Michael Thompson is an example of just how successful those shared efforts can be.  Through the efforts of citizens, state and local law enforcement, and federal authorities, Michael Thompson will never push heroin in the Abilene community again.”

According to evidence presented at trial, on October 6, 2017, Bobby Mason telephoned Thompson to coordinate for the delivery of heroin to Mason and A.M. in Abilene, Texas.  Thompson distributed about two grams of heroin to Mason.  Mason and A.M. then prepared to intravenously use some of the heroin that Thompson had given them.  As soon as A.M. injected the heroin, she collapsed.  Mason called 911 and then left the scene.  Officers with the Abilene Police Department, and medical personnel from MetroCare and the Abilene Fire Department responded.  When they arrived, they found A.M. cyanotic and with agonal respiration.  According to the testimony of a medical expert, the heroin provided by Thompson caused A.M. a substantial risk of death and, but for the intervention of medical personnel, would have been fatal.  Medical personnel administered Narcan to A.M. and she recovered.

The United States also presented evidence that on October 11, 2017, officers with the Abilene Police Department went to Thompson’s residence in Abilene to arrest Thompson and execute a search of his residence.  When officers approached Thompson, he fled into his residence and stayed in the residence for about 25 minutes before finally surrendering to police.  Upon searching Thompson’s residence, they discovered evidence of Thompson’s involvement in trafficking heroin and other illegal controlled substances such as cocaine, Xanax, and marijuana.

The defendants’ sentence will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record, the defendant’s role in the offense and the characteristics of the violation. 

The Abilene Police Department and Texas Department of Public Safety Crime Laboratory investigated.  Assistant U.S. Attorneys Juanita Fielden and Jeffrey Haag are prosecuting the case.

 

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DALLAS —Bryan Anthony Adams, 29, of Euless, Texas, who pleaded guilty in September  2017 to one count of being a convicted felon in possession of a firearm and one count of possession of a firearm in furtherance of a drug trafficking crime, was sentenced by Chief U.S. District Judge Barbara M.G. Lynn to 108 months in federal prison.  U.S. Attorney Erin Nealy Cox of the Northern District of Texas made the announcement today.

According to documents filed in the case and statements made on the record at his sentencing hearing yesterday, on April 7, 2016, law enforcement executed a narcotics search warrant at an apartment on East Ash Lane in the City of Euless, Texas.  A search of the apartment resulted in the discovery of approximately 51 grams of a mixture or substance containing cocaine, three firearms, digital scales and baggies-drug distribution paraphernalia.  Law enforcement discovered that Adams, had been previously convicted of aggravated robbery with a deadly weapon. 

The Irving Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives , investigated.

Assistant U.S. Attorney Gary Tromblay prosecuted.

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Cary Hudson, a former financial administrator for the U.S. Bureau of Prisons (BOP) in Carswell, Texas, has agreed to pay the United States $50,000 to resolve allegations that he violated the Anti-Kickback Act by accepting improper payments from Mansfield, Texas-based Integrated Medical Solutions Inc. (IMS) in exchange for his assistance in obtaining BOP contracts.  In May 2017, IMS and its former president, Jerry Heftler, agreed to pay more than $2.4 million to resolve their civil liability arising from the alleged scheme.  

“This settlement demonstrates that the Department of Justice is committed to protecting the integrity of the federal contracting process from unscrupulous contractors,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division.  “Improper financial arrangements between government officials and private contractors corrupt taxpayer-funded contracts.”

The settlement announced yesterday resolves allegations that Hudson, while serving as a BOP financial administrator, accepted payments from IMS in exchange for providing favorable treatment in connection with BOP contracts to manage healthcare networks that provided medical care to federal inmates.  Hudson’s assistance to IMS allegedly included the provision of certain confidential, non-public information that gave IMS an unfair competitive advantage in the bidding process.  The government also alleged that, after IMS obtained the contracts with BOP, Hudson improperly assisted IMS in its performance of the contracts while simultaneously serving as a BOP financial administrator.

“This case, in which our office both criminally prosecuted the responsible employee and civilly recovered almost $2.5 million for the federal fisc, should serve as an example and warning to others who might be similarly tempted to abuse positions of trust in federal programs funded with taxpayer dollars,” said U.S. Attorney Erin Nealy Cox of the Northern District of Texas.  

In October 2014, Hudson pleaded guilty to a felony violation of 18 U.S.C. § 1001 for failing to disclose the payments he received from IMS as part of his annual obligation as a federal government employee to report any potential conflicts of interests.   

This matter was handled by the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the Northern District of Texas, with assistance from the Department of Justice Office of Inspector General.     

Except to the extent of the admissions in Hudson’s guilty plea, the claims resolved by the civil settlement are allegations only, and there has been no determination of liability.

DALLAS, Texas — Following a four-day trial, a federal jury has convicted Michael Wright, 28, and Rickey Cherry, 28, both of Dallas, of multiple robbery and firearm offenses, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.

Specifically, on Monday a federal jury convicted Wright on three counts of interference with commerce by robbery, three counts of using, carrying, or brandishing a firearm during and in relation to a crime of violence, and one count of possession of a firearm by a convicted felon.  The jury also found Cherry guilty of two counts of interference with commerce by robbery and two counts of using, carrying, or brandishing a firearm during and in relation to a crime of violence.  The two men are scheduled to be sentenced on August 22, 2018, by U.S. District Judge Ed Kinkeade.  A third defendant, Kameron Robinson, was charged in the same indictment and pleaded guilty to one count of interference with commerce by robbery and one count of using, carrying, or brandishing a firearm during and in relation to a crime of violence.  He is scheduled for sentencing before Judge Kinkeade on June 21, 2018.

Evidence presented at trial showed that Wright and Robinson committed one robbery and that Wright committed two additional robberies with Cherry.  On January 2, 2015, Wright and Robinson used a handgun to rob an AT&T authorized retailer in Ennis, Texas, of cell phones and tablets.  Ennis Police Department discovered the men during their flight from the robbery, prompting a high-speed chase into Ellis County, where police were able to apprehend the men after they wrecked their vehicle and fled on foot.  Wright and Cherry used handguns to rob a Radio Shack store in Duncaville, Texas of cell phones and tablets on January 22, 2015, and an AT&T authorized retailer in Grand Prairie, Texas of cell phones and tablets on March 7, 2015.

The defendants’ sentences will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendants’ prior criminal record, the defendant’s role in the offense and the characteristics of the violation. 

The Federal Bureau of Investigation investigated the case with the assistance of Ennis Police Department, Duncanville Police Department, and Grand Prairie Police Department.  Section Chief Keith Robinson and Assistant United States Attorneys Gary Tromblay and Brian McKay are prosecuting the case.

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DALLAS — Yesterday, U.S. District Judge David C. Godbey sentenced Hugh Michael Glenn, 47, of Dallas, Texas, on child pornography offenses, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.

Glenn was convicted, following a three-day trial, of one count of transporting and shipping child pornography and one count of accessing with intent to view child pornography. Glenn has been in custody since the time of his arrest in September 2016. 

The government presented evidence at trial that on August 1, 2016, Glenn transported child pornography by uploading an image of child pornography using Chatstep.  Law enforcement obtained Glenn’s laptop computer, which contained the transported image and over 2,000 other images of child pornography.  Glenn confessed to law enforcement that he had gone to chatrooms and viewed child pornography on the Internet.   

In 2003, Glenn was convicted in the United States District Court for the Eastern District of Texas for transporting child pornography.  In that case, he was sentenced to ninety-seven months of imprisonment.

This case was prosecuted as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse.  Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims.  For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.  For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”

The Federal Bureau of Investigation and the Dallas Police Department investigated this case.  Assistant U.S. Attorneys Camille Sparks and Jamie L. Hoxie prosecuted.

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