Northern District of Texas

FORT WORTH, Texas — Jon Anthony Terry, 28, of Rockwall, Texas, was charged in a federal indictment, returned today by a grand jury in Fort Worth, Texas, with four counts of production of child pornography and one count of possession of prepubescent child pornography, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.

Terry is currently in custody on a related criminal complaint. A date has not yet been set for him to make his initial appearance.

The indictment alleges that, on one occasion in 2013 and three separate occasions in 2017, Terry induced three different prepubescent minors to engage in sexually explicit conduct while he recorded the conduct. The indictment also charges Terry with possessing images of child pornography in November 2017.

A federal indictment is an accusation by a grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, the statutory penalty for the production count is not less than 15 years or more than 30 years in prison and for the possession count, not more than 10 years in prison. Both counts also carry a fine of up to $250,000 and a term of supervised release of up to life.    

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 investigation is being conducted by the U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Camille Sparks is in charge of the prosecution.

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DALLAS — A Dallas man, Stephen Christopher Plunkett, 42, was sentenced this week by U.S. District Judge Sam A. Lindsay to 114 months in federal prison and ordered to pay $10,220 in restitution for committing three bank robberies, in the Dallas-Fort Worth metroplex in March 2014, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.

Plunkett pleaded guilty in January 2016 to two counts of bank robbery. He has been in custody since his arrest in June 2015.

According to documents filed in the case and information presented at his sentencing hearing, Plunkett admitted to robbing the following three banks:

        March 24, 2014           Chase Bank, 10729 Preston Road, Dallas

 

        March 25, 2014           Wells Fargo, 14999 Preston Road, Dallas

 

        March 28, 2014           Wells Fargo, 2611 Cedar Springs Road, Dallas

 

Judge Lindsay ordered Plunkett to serve the 114-month sentence in this case consecutively to a 10 year sentence Plunkett received for the April 9, 2014 robbery of a Chase Bank branch located in Forsyth County, Georgia.

The Federal Bureau of Investigation investigated.  Deputy Criminal Chief Assistant U.S. Attorney Lisa Dunn prosecuted.

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DALLAS — Jose Dominguez Berroa, aka “Ana Maria Rodriguez,” “Martha Vargas,” and “Michelle Dominguez,” of Dallas, appeared in federal court this morning and pleaded guilty before U.S. Magistrate Judge David L. Horan to one count of wire fraud, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.

Berroa faces a maximum penalty of twenty years in federal prison, and a $250,000 fine.  The defendant could also be ordered to pay restitution. Berroa will remain on bond pending sentencing, which is set for April 4, 2018.

Co-defendant Rufus Kimangi Kariuki is scheduled to begin trial on April 23, 2018.

According to the plea agreement factual resume, from February 2012 through December 2012, Berroa and others opened several bank accounts in and around Dallas using false alias names and fraudulent passports. During this time Berroa and others filed approximately 18 fraudulent tax returns and obtained fraudulent refunds totaling at least $314,932 from the IRS.

 

After the fraudulent tax refunds were deposited into the bank accounts, according to the factual resume, Berroa used debit cards to purchase money orders at local stores and would give the blank money orders to Kariuki. Kariuki then distributed blank money orders to Berroa and to others who participated in the scheme.

 

The case was investigated by the Internal Revenue Service.  Assistant U.S. Attorney David Jarvis is in charge of the prosecution.

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FORT WORTH, Texas — Preston Anthony King, 23, of Burleson, Texas, was sentenced today by Senior U.S. District Judge Terry R. Means to 12 years in federal prison and 20 years of supervised release. The sentence follows King’s guilty plea in August 2017 to one count of enticement of a minor, announced Erin Nealy Cox, U.S. Attorney for the Northern District of Texas.

King has been in custody since November 2016 on a related complaint.

According to documents filed in the case, on March 14, 2016, a Fort Worth Police Officer acting in an undercover capacity and posing as a 13-year-old girl responded to an advertisement that King posted on Craigslist. The description of the advertisement indicated that King was looking to engage in sexual intercourse. During the conversation, the officer told King that she was 13 years old, and later in the conversation King told the officer that he wanted to engage in sexual intercourse with her. King agreed to meet, who he thought was a 13-year-old girl, on March 15, 2016, at a hotel room in Fort Worth, Texas, to engage in sexual intercourse. When King arrived at the agreed location the Fort Worth Police Department took King into custody.

 

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 Fort Worth Police Department investigated the case. Assistant U.S. Attorney Megan Fahey is in charge of the prosecution.

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DALLAS — Gary Busby, 65, formerly of Flower Mound, Texas, was sentenced this morning by U.S. District Judge Sam A. Lindsay to 78 months in federal prison for his role in a conspiracy to illegally manufacture firearms that were sent to Mexico, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.

Busby was convicted in March 2017, following a two-week jury trial, on one count of conspiracy to manufacture firearms without a license and four counts of structuring financial transactions to evade reporting requirements.  Judge Lindsay ordered Busby to surrender to the Bureau of Prisons on March 6, 2018.

According to evidence presented at trial, over the course of 2010 and 2011, Busby manufactured hundreds of AR-15 and AK firearm receivers into fully functional firearms and made thousands of dollars doing so.  Law enforcement found approximately fifty of these firearms. Some were recovered smuggled into Mexico while the rest were recovered by Mexican authorities.

Evidence also showed that from approximately December 2010 to September 2012, Busby purchased hundreds of postal money orders at dozens of post offices in the Dallas-Fort Worth area, in an effort to hide the proceeds of his illegal firearm activity.  Busby would only purchase two $1,000 money orders at a time at one post office, using cash, and would travel to up to six post offices in one day, purchasing $2,000 in money orders at each.  Doing so, he was knowingly evading the federal reporting requirement for when a customer purchases $3,000 or more in money orders.  In 2011 alone, Busby purchased approximately $236,000 in postal money orders, in order to hide the money made manufacturing firearms.  Evidence presented to the jury showed that he knowingly structured these cash transactions.

The Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Postal Inspection Service investigated.  Assistant U.S. Attorney Kate Rumsey and Criminal Chief Chad Meacham prosecuted.

 

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DALLAS — A federal grand jury in Dallas has indicted Joshua Pugh, 23, of Dallas, Texas, and Johnny Glenn Clifton, 50, of Frisco, Texas, on wire fraud charges stemming from an elaborate scheme to defraud an individual out of approximately $1 million between November 2015 and March 2017, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.

 

Specifically, the indictment charges Pugh, aka “Joshua Wealthy,” “Joshua Money,” “Joshua Looney” and “Jmoney” and Clifton, aka “John Mason” and “John Glenn,” with one count of conspiracy to commit wire fraud and five counts of wire fraud.  The indictment was returned this week and unsealed yesterday. Detention hearings for both defendants are scheduled for December 12, 2017 before U.S. Magistrate Judge Renee Harris Toliver. 

According to the indictment, in March 2016, Clifton contacted an individual, Victim 1, and detailed an opportunity to invest in Sectors Global Management (Sectors), a fictitious elite real estate company. According to Clifton, Sectors was backed by elite individuals. Clifton alleged that he would serve as the chief executive officer of Sectors and an individual that Clifton referred to as “Joshua Wealthy” was a leading member. 

Clifton explained to Victim 1 that both he and “Wealthy” were also members of or connected to the Illuminati, which he described as a clandestine cabal of high net worth individuals who delegated control of the world to a select group of 43 families through the manipulation of banks, politics, and intelligence/law enforcement organizations. Clifton stated that Victim 1 was selected to invest in Sectors because of a secret reason that even Clifton was not allowed to know.

The indictment alleges in an effort to convince Victim 1 of the legitimacy of these claims, Pugh and Clifton used extravagant means to effectuate their scheme to defraud Victim 1, including the use of helicopters, caravans, bodyguards, chauffeurs, falsified documentation, and contrived video chats and teleconferences with purported world leaders. The defendants also created a library of falsified documents intended to corroborate their claims, including, emails and communications describing major business deals; letters to major corporations and sport franchises discussing Pugh’s roles in such entities; alleged communications with businesses detailing endorsements with major companies such as Under Armour and the National Basketball Association (NBA); daily itineraries for “Wealthy,” which referenced frequent travel in private jets; and falsified tax documents and W-2 forms.

 

During certain meetings with Victim 1, Pugh outlined the ramifications to Victim 1 if he did not comply with their demands, which included the seizure of Victim 1’s assets, Victim 1’s incarceration by law enforcement and claimed his life would be in danger. The defendants would also send emails often demanding additional money from Victim 1 and outlined the consequences of non-compliance, according to the indictment.

 

Based on the representations and interactions with the defendants, Victim 1 feared the ramifications of not meeting their demands. Victim 1 invested approximately $1 million between November 2015 and March 2017 with Sectors. The money invested was used by the defendants to purchase two Porsche Panameras, a Maserati Quatraporte, merchandise from Louis Vuitton, a black mink stroller coat, a ticket to Super Bowl LLI, a private jet, $400 per month payment to an individual who would put in and take out Pugh’s contact lenses on a daily basis, and chartered helicopter rides.

  

An indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty.  However, if convicted, the maximum statutory penalty for each count of wire fraud is 20 years in federal prison and a $250,000 fine.  Restitution could also be ordered.  The indictment also includes a forfeiture allegation that would require the defendant, upon conviction, to forfeit the proceeds obtained as a result of the offense, including, a 2010 Porsche Panamera, 2012 Porsche Panamera and 2007 Maserati Quattroporte. . 

The Federal Bureau of Investigation is in charge of the investigation.  Assistant U.S. Attorney PJ Meitl is in charge of the prosecution.

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DALLAS — A Cleburne woman, Linzi Ladawn Shifflett, was sentenced yesterday by U.S. District Judge Jane J. Boyle to 720 months in federal prison and a lifetime of supervised release, following her guilty plea to two counts of production of child pornography, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.

Shifflett, 29, has been in custody since October 2016.    

According to the plea agreement factual resume and information presented at the sentencing hearing, from at least February 25, 2016 through September 28, 2016, Shifflett molested a four-year-old minor child who was in Shifflett’s custody and took sexually explicit photographs and videos of the child. Shifflett then sold the child pornography for nominal amounts of money to a man in Florida. As a part of the sentence, the Court ordered Shifflett to pay $194,815.17 in restitution.

 

Michael Eugene Williams, the man in Florida who paid for the child pornography, is being separately prosecuted by the U.S. Attorney’s Office for the Middle District of Florida.  He has pleaded guilty to one count of sex trafficking of a child.  His sentencing hearing is currently scheduled for January 29, 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 investigation was conducted by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Cleburne Police Department in Texas, and the Jacksonville Police Department in Florida.  Assistant U.S. Attorney Jamie L. Hoxie prosecuted.

 

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DALLAS — Crystal Burrows, of Arlington, Texas, was sentenced today by U.S. District Judge Jane J. Boyle to 28 months in federal prison and ordered to pay $320,375 in restitution.  The sentencing follows Burrows’ guilty plea in January 2017 to one count of wire fraud.  The announcement was made by U.S. Attorney Erin Nealy Cox of the Northern District of Texas.

Judge Boyle ordered Burrows to surrender to the Bureau of Prisons on January 17, 2018.

According to documents filed in her case, beginning in 2014, Borrows knowingly and intentionally participated in a scheme to defraud the Internal Revenue Service (IRS).  More specifically, Burrows electronically filed tax returns for the tax year 2013 with her EFIN, and for tax years 2014 and 2015 with EFINs of coconspirators, under taxpayers’ names and social security numbers without the taxpayers’ knowledge or consent.  In total, Burrows prepared and filed at least 22 fraudulent tax returns using stolen identifying information of tax payers.  Burrows also used two stolen social security numbers to establish numerous credit card accounts, a car loan, store accounts, and care credit accounts typically used for medical procedures.

The case was investigated by IRS Criminal Investigation.  Assistant U.S. Attorney Andrew Wirmani is in charge of the prosecution.

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AMARILLO — Following a three-day trial, a federal jury has convicted Jose Santillan, 25, of Amarillo, Texas, on one count of conspiracy to distribute and possess with intent to distribute 50 grams or more of pure methamphetamine, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.

The conspiracy conviction carries a statutory penalty of at least ten years and not more than life in federal prison and a $10,000,000 fine.  Santillan is scheduled to be sentenced on March 26, 2018, by U.S. District Judge Sidney A. Fitzwater.

According to evidence presented at trial, on February 2, 2016, a Texas Department of Public Safety agent working in an undercover capacity arranged to purchase eight ounces of methamphetamine from Guadalupe Vargas-Mayorga.  Through surveillance and recorded telephone calls between the undercover agent and Vargas-Mayorga, law enforcement learned that Vargas-Mayorga obtained the eight ounces of methamphetamine from Jose Santillan and then delivered that methamphetamine to the undercover agent.  Laboratory results confirmed that Vargas-Mayorga and Santillan delivered 192 grams of pure methamphetamine to the undercover agent on February 2, 2016.  The evidence presented at trial also showed that Santillan had been supplying Vargas-Mayorga with methamphetamine for further distribution since approximately 2014. 

The Drug Enforcement Administration, Department of Homeland Security, Texas Department of Public Safety, Amarillo Police Department, Potter County Sheriff’s Office, and Randall County Sheriff’s Office investigated.  Assistant U.S. Attorneys Sean Taylor and Joshua Frausto and Deputy Criminal Chief Assistant U.S. Attorney Jeffrey Haag are prosecuting the case.

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DALLAS — On December 6, 2017, a husband and wife were indicted on charges that they submitted false and fraudulent claims for home health services and defrauded Medicare of more than $3.4 million, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.

Edwin Oparaochaekwe, 53, and Chiazom Oparaochaekwe, 47, both of Grand Prairie, Texas, are charged collectively with 10 counts of health care fraud.  Today, both defendants were arrested and made their initial appearance before a U.S. Magistrate Judge.

The indictment alleges that from December 2011 through May 2017, Prime World Home Health (Prime World) was an approved home health agency located originally in Irving, Texas and most recently in Mansfield, Texas.  Edwin Oparaochaekwe was part-owner of Prime World and worked as a recruiter. Chiazom Oparaochaekwe was a registered nurse and also part-owner of Prime World.

As part of the scheme, the defendants marketed Prime World’s services directly to Medicare beneficiaries, instead of obtaining referrals from physicians who had legitimate physician-patient relationships with patients. To obtain the required physician homebound certifications and plans of care (CMS-485s), the defendants sought and obtained signatures on CMS-485s from physicians who had no prior relationship with the patients, and who, in many cases, never saw or treated them. The defendants sought home health certifications for patients regardless of the patient’s eligibility for home health care.

Prime World employees were directed to submit claims for patients that did not have legitimately signed CMS-485s.  For some of the unsigned CMS-485s, Chiazom Oparaochaekwe forged the signatures by photocopying physician signatures and affixing them on the unsigned document.  Chiazom Oparaochaekwe then placed a copy of the forged document in the patient’s medical record.

An indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty.  If convicted, each of the 10 counts of health care fraud carries a maximum statutory penalty of 10 years in federal prison and a $250,000 fine.  Restitution could also be ordered.  In addition, the indictment includes a forfeiture notification that would require the defendants, upon conviction, to forfeit any property derived from proceeds of the offenses alleged.

The case was investigated by the Department of Health and Human Services-Office of Inspector General, the Federal Bureau of Investigation, and the Texas Medicaid Fraud Control Unit.  Assistant U.S. Attorney Kate Rumsey and Special Assistant U.S. Attorney Jason Meyer are handling the prosecution. 

 

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AMARILLO, Texas —Rogelio Xochitl Amparan, 29, was sentenced this week by U.S. District Judge Sidney A. Fitzwater to 189 months in federal prison terms for his role in a methamphetamine distribution conspiracy, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.

Amparan has been in custody since his arrest in June 2017 on a related federal criminal complaint. He pleaded guilty in September 2017 to one count of possession with intent to distribute 500 grams or more of methamphetamine.

Co-defendants Miguel Angel Bravo-Farias, 41, and Hector Terrazas, 25, were also arrested in June 2017. Bravo-Farias and Terrazas pleaded guilty to their roles and are awaiting sentencing.

According to the plea agreement factual resume, on June 8, 2017, an operation was conducted to purchase 20 pounds of methamphetamine from Bravo-Farias, an illegal immigrant, and Terrazas. When law enforcement agents met with Bravo-Farias and Terrazas they were in possession of a box containing a large amount of methamphetamine and were arrested at the scene.

 

During the operation, Amparan was observed leaving Terrazas’ residence. He was stopped by law enforcement and arrested for having a suspended registration.

 

A search of Terrazas’ residence revealed 2 containers with crystal like residue and 34 empty glass bottles with crystal like substance on the spouts in a bedroom. In the refrigerator, there were multiple containers containing a total of approximately 5,498 grams of liquid methamphetamine. In the same room was a closet that was converted into a work station with drying equipment. The closet contained fans and opened igloo style containers. On the floor there were used plastic gloves and utensils that had crystal like substance on them. The residence was used as a conversion lab from liquid to crystal methamphetamine.

 

During an interview, according to the plea agreement factual resume, Amparan admitted that he was involved in the methamphetamine operation. Amparan stated that he received all the money from the sale of methamphetamine and transported the money back to his brother, who lives in Juarez, Mexico.

 

The Amarillo Police Department and the Drug Enforcement Administration investigated the case with assistance from the Randall County Sheriff’s Office, the Potter County Sheriff’s Office, the Texas Department of Public Safety and the Potter County District Attorney’s Office.

 

Assistant U.S. Attorney Anna Bell prosecuted.

       

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DALLAS — A local tax return preparer who managed a tax preparation business in Dallas, who admitted to filing fraudulent tax returns, was sentenced today, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.

 

Arslen Ramin Ayeze was sentenced by U.S. District Judge Ed Kinkeade to serve twelve months and one day in federal prison and ordered to pay $65,000 in restitution to the Internal Revenue Service (IRS). Ayeze pleaded guilty in July 2017 to one count of aiding and assisting in the preparation of a tax return and was remanded to custody following his guilty plea for a violation of his conditions of pretrial release.

 

According to the plea agreement factual resume filed in the case, from 2008 through 2010, Ayeze was a tax preparer doing business under the name of Universal Tax in Dallas, Texas. On January 20, 2010, Ayeze prepared and electronically filed with the IRS, a 2009 U.S. Individual Income Tax Return, Form 1040, on behalf of K.G. which was false and fraudulent. In preparing the tax return, Ayeze deceived the IRS by falsely including a business loss deduction in the amount of $10,575 for a purported sole proprietorship operated by K.G. Ayeze knew K.G. had not incurred the loss and was not entitled to claim the deduction on the tax return. The false deduction of $10,575 resulted in an actual tax loss to the United States in the approximate amount of $2,557.

 

The investigation was conducted by Internal Revenue Service Criminal Investigation.  Assistant U.S. Attorney Christopher Stokes prosecuted.

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DALLAS — A federal grand jury in Dallas has indicted eleven defendants, including Alfredo Navarro Hinojosa, 57, of Dallas, Texas, on felony charges stemming from their involvement in laundering money and the distribution of cocaine at several North Texas nightclubs, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.

 

The indictment supersedes an earlier indictment returned in the case. Eight defendants were charged in that indictment with various felony drug offenses. Four of those defendants have pleaded guilty, three remain fugitives and one is awaiting trial.

The thirty-three count superseding indictment returned yesterday charges Hinojosa, along with, Miguel Casas, 47, of Dallas; Martin Salvador Rodriguez, aka “Chava,” 55, of Dallas; Humberto Baltazar Novoa, 39, of Dallas; Eddie Villarreal, 48, of Carrollton, Texas; Craig Woods, 60, of Dallas; Eloy Alvarado Montantes, aka “Don Loy,” 36, of Grand Prairie, Texas; Jose Omar Santoyo Salas, aka “Omar Salas,” 32, of Arlington, Texas; Erick Johan Lopez Cuellar, aka “Erick Lopez,” 30, of Fort Worth; Raul Nunez, aka “Junior,” 25, of Grand Prairie, Texas; and Cesar Mendez, 27, of Dallas.

 

According to the superseding indictment, between 2014 and 2016 Hinojosa owned over forty nightclubs – including the Far West nightclub (Dallas), the OK Corral nightclub (Fort Worth), the OK Corral nightclub (Dallas), and the Medusa nightclub (Dallas) – and other businesses in Texas and elsewhere that brought in approximately $107 million in revenue. Hinojosa’s businesses dealt in large volumes of cash, which Hinojosa used as a means for hiding the true nature of certain cash deposits by using shell companies, making unusual deposits and transfers, and transporting cash from location to location. Hinojosa and Novoa also engaged in business transactions with bands who traveled back and forth to Mexico. These transactions included attempts to launder money for at least one band or for entities that were using the band.

 

In an effort to promote and guarantee profits at his nightclubs, including the Dallas OK Corral nightclub, Dallas Far West nightclub, and Fort Worth OK Corral nightclub, Hinojosa and his mangers – including Casas and Rodriguez – openly allowed cocaine to be sold to nightclub patrons. Certain selected dealers were permitted to sell approximately 100-200 baggies of cocaine each weekend at the nightclubs, resulting in multiple kilograms of cocaine being sold through the clubs for hundreds of thousands of dollars. The superseding indictment includes nineteen counts against Hinojosa, Casas, and Rodriguez for managing a drug premises at three of the nightclubs noted above.

 

Villarreal and Woods were both officers of the Dallas Police Department between September 1994 and October 2015, and October 5, 1981, and March 4, 2017 respectively. During portion of these time frames, both Villarreal and Woods also worked as security consultants or guards for Hinojosa. According to the superseding indictment, both Villarreal and Woods improperly used their positions as Dallas Police Officers to benefit Hinojosa.

 

Novoa, who worked with Hinojosa and as a band promoter, was charged with conspiracy to structure transactions to evade reporting requirements and making a false statement in an immigration document. The superseding indictment alleges that the remaining defendants – Montantes, Salas, Cuellar, Nunez, and Mendez – were connected to and involved in drug distribution.   

 

The superseding indictment includes references to recordings taken in Hinojosa’s headquarters, in which he discusses laundering funds and cleaning money.  

 

A federal indictment is an accusation by a grand jury. A defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, 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 defendant’s prior criminal record (if any), the defendant’s role in the offense and the characteristics of the violation.   

 

Following the return of the superseding indictment, the parties filed executed plea documents for Hinojosa, Villarreal and Woods. According to the documents, Hinojosa has agreed to plead guilty to a conspiracy to manage a drug premises and conspiracy to structure transactions to evade reporting requirements. Per his plea agreement, Hinojosa has agreed to forfeit $200,000, a Ferrari F355, a Land Rover Range Rover, a Hummer H2, a Mercedes-Benz, and a Gillig Motorhome.

 

Both Villarreal and Woods have each agreed to plead guilty to a single count of making a false statement to the FBI.     

 

The case is being investigated by the Federal Bureau of Investigation, the Dallas Police Department, Internal Revenue Service, Texas Attorney General’s Office, and the Texas Alcoholic Beverage Commission. Assistant U.S. Attorneys P.J. Meitl, Errin Martin, John DelaGarza, and Jamie Hoxie are in charge of the prosecution.

 

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DALLAS — Eric Barrientos, 34, of Dallas, Texas, was sentenced yesterday by U.S. District Judge Ed Kinkeade to 140 months in federal prison, following his guilty plea in April 2017 to one count of possession with intent to distribute a controlled substance and one count of possession of a firearm in furtherance of a drug trafficking offense, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.

Barrientos has been in custody since the time of his arrest in July 2016.

According to the plea agreement factual resume filed in the case, on November 3, 2015, federal agents, after making several controlled purchases of narcotics from Barrientos, executed a federal search warrant at his residence. Law enforcement seized ten firearms and distribution quantities of methamphetamine ice, black tar heroin, and marijuana.

 

The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case.  Assistant U.S. Attorney Andrew Wirmani was in charge of the prosecution.

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DALLAS — Ignacio Arellano-Banuelos, 36, a citizen of Mexico, appeared this morning before U.S. District Judge David C. Godbey and was sentenced to 66 months in federal prison for reentering the United States illegally, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.

Arellano-Banuelos was convicted in April 2017, following a two-day trial, of one count of illegal reentry following deportation. He has been in custody since his arrest in June 2016 and will be deported after serving his sentence. 

According to evidence presented at trial, on May 8, 2015 Arellano-Banuelos was found in the United States after having been deported and removed on September 10, 2009, without receiving consent from the United States Attorney General or the Secretary of the Department of Homeland Security to reapply for admission since the time of the previous deportation and removal.

U.S. Immigrations and Customs Enforcement's (ICE) Enforcement and Removal Operations (ERO) investigated the case.  Assistant U.S. Attorney Shane Read and Special Assistant U.S. Attorney Lynn Javier prosecuted.

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WASHINGTON – Pine Creek Medical Center LLC (“Pine Creek”), a physician-owned hospital serving the Dallas/Fort Worth area, has agreed to pay $7.5 million to resolve claims that it violated the False Claims Act by paying physicians kickbacks in the form of marketing services in exchange for surgical referrals, the Department of Justice announced today.

“Health care providers that attempt to profit from illegal kickbacks will be held accountable,” said Principal Deputy Assistant Attorney General Chad A. Readler, head of the Justice Department’s Civil Division.  “Improper financial incentives can distort medical decision making and drive up healthcare costs for federal health care programs and their beneficiaries.” 

The government alleged that, between 2009 and 2014, Pine Creek engaged in an illegal kickback scheme whereby the hospital would pay for marketing and/or advertising services on physicians’ behalf and, in return, the physicians would refer their patients, including Medicare and TRICARE beneficiaries, to Pine Creek.  Among other things, Pine Creek allegedly paid for advertisements on behalf of the physicians in a number of local and regional publications.  Pine Creek also allegedly paid for radio and television advertising, pay-per-click advertising campaigns, billboards, website upgrades, brochures, and business cards, as well as other forms of marketing to induce physicians to refer patients to Pine Creek for medical services.

“The United States Attorney’s Office, in coordination with our partners at Main Justice and HHS-OIG, have and will continue to aggressively pursue those that violate the Anti-Kickback Statute, regardless of the nature or form that the kickback takes,” said Erin Nealy Cox, the U.S. Attorney for the Northern District of Texas.  “We must hold individuals and entities responsible for improperly furthering their financial interests at the expense of the federal health care programs.”

As part of the settlement, Pine Creek has agreed to enter into a corporate integrity agreement with the Department of Health and Human Services Office of Inspector General (HHS-OIG), which obligates the defendants to undertake substantial internal compliance reforms for the next five years.

“Hospitals that try to boost their profits by paying kickbacks to physicians will instead pay for their improper conduct,” said Special Agent in Charge C.J. Porter, Department of Health and Human Services, Office of Inspector General’s Dallas Region.  “We will continue to investigate such illegal business arrangements that undermine impartial medical judgment.”

The settlement resolves allegations originally brought in a lawsuit filed by whistleblowers under the qui tam provisions of the False Claims Act, which allow private parties to bring suit on behalf of the government and to share in any recovery.  The whistleblowers, Suzanne Scott and Savannah Sogar, former employees of Pine Creek’s marketing department, will receive $1,125,000.

The government’s intervention in this matter illustrates its emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act.  Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).

The case was handled by the U.S. Attorney’s Office for the Northern District of Texas and the Justice Department’s Civil Division, with assistance from the Federal Bureau of Investigation, and in coordination with the U.S. Department of Health and Human Services Office of Inspector General. 

The lawsuit is captioned U.S. ex rel. Suzanne Scott, et al. v. Pine Creek Medical Center, LLC, Case No. 3:14-cv-3065 (N.D. Tex.). The claims settled by this agreement are allegations only; there has been no determination of liability.

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DALLAS — A 37-year-old man from Dallas, Laroy Damont Johnson, was sentenced today before U.S. District Judge Sam A. Lindsay to serve a total of 96 months in federal prison for drug and firearm offenses, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.

In August 2017, Johnson was convicted of one count of possession with intent to distribute a controlled substance, namely, heroin, one count of possession of a firearm in furtherance of a drug trafficking crime, and one count of being a felon in possession of a firearm. Johnson has been in custody since the time of his arrest in June 2016.

According to evidence presented at trial, Johnson was staying at a hotel room in Dallas that he used to sell heroin. Law enforcement searched the room and found Johnson sitting on the couch next to three cell phones and nearly $5,000 cash; distribution quantities of heroin in the fridge; a table covered in what appeared to be heroin residue, along with Xanax pills in a plastic baggie, cocaine, a digital scale, and a razor blade; and a loaded firearm wedged between the mattress and the box spring of the bed. The government presented additional evidence suggesting that Johnson had been staying in the room for several days distributing drugs.    

The Drug Enforcement Administration and the Irving Police Department investigated.  Assistant U.S. Attorneys Andrew Wirmani and Jamie L. Hoxie prosecuted the case.

 

 

# # #

DALLAS, Texas — Jody Sheffield, 44, of Austin, Texas, pleaded guilty today, before U.S. District Judge Sidney A. Fitzwater, to one count of conspiracy to commit health care fraud stemming from a scheme to defraud TRICARE through the submission of unnecessary toxicology and DNA cancer screening tests. The announcement was made today by Criminal Chief Chad Meacham of the Northern District of Texas.

Sheffield faces a maximum penalty of not more than five years in federal prison, a $250,000 fine, and may be ordered to pay restitution. Sheffield will remain on bond pending sentencing, which is scheduled for May 18, 2017.

According to the plea agreement factual resume filed in the case, , Sheffield was the operations manager for ADAR Group, LLC (ADAR Group), an outpatient toxicology testing facility. Erik Bugen owned and operated ADAR Group. Britt Hawrylak and Matthew Hawrylak were marketers for Xpress Laboratories, Inc. (Xpress Laboratories) and Progen Lab Systems, LLC (Progen Labs), and financiers of ADAR Group.

 

Starting in May 2015 and continuing through May 2016, ADAR Group collected urine and saliva samples from TRICARE, a healthcare program of the United States Department of Defense (DoD) Military Health System that provided coverage for DoD beneficiaries world-wide, including active duty service members, National Guard and Reserve members, retirees, their dependents, and survivors. The samples were sent to Xpress Laboratories and Progen Labs and billed to TRICARE and private insurance for unnecessary toxicology and DNA cancer screening tests.

 

Sheffield and Bugen induced TRICARE beneficiaries to provide urine and saliva samples with $50.00 Wal-Mart gift cards. Sheffield and his co­defendants disguised the kickback payments as a food assistance program for low income soldiers. They also paid monthly fees to doctors to sign test forms. Ultimately, Bugen obtained signature stamps from the doctors and Sheffield and other ADAR Group employees stamped the testing order forms. Beneficiaries did not see these doctors prior to obtaining the testing, did not receive test results, and did not know the purpose of their samples.

 

As a result of the scheme, TRICARE was billed approximately $36 million for tests that were not needed, not legitimately prescribed, and which were the product of kickbacks. For these claims, TRICARE paid approximately $4.8 million.

 

The Defense Criminal Investigative Service, Veteran’s Affairs- Office of Inspector General, and Federal Bureau of Investigation, are investigating. Assistant U.S. Attorney Adrienne Frazior is prosecuting. 

# # #

LUBBOCK, Texas — A Littlefield, Texas, resident, Luis Zubia, 36, was sentenced this morning by Senior U.S. District Judge Sam R. Cummings to 135 months in federal prison, following his guilty plea in September 2017 to an indictment charging one count of enticement of a minor, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.

According to the plea agreement factual resume filed in the case, from February 2017 until April 2017, Zubia had text conversations that were sexual in nature with “Jane Doe,” a 16-year-old female. Zubia asked “Doe” to send him sexually explicit photos and videos of herself and eventually talked about meeting up with “Doe.”

Zubia asked for, and was provided, “Doe’s” address, along with the name of her school. On March 7, 2017, Zubia sent a text to “Doe,” stating his desire to meet up and to engage in sexual intercourse with her.

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 Littlefield Police Department investigated the case.  Assistant U.S. Attorney Steven M. Sucsy was in charge of the prosecution.

 

# # #

Pine Creek Medical Center LLC (“Pine Creek”), a physician-owned hospital serving the Dallas/Fort Worth area, has agreed to pay $7.5 million to resolve claims that it violated the False Claims Act by paying physicians kickbacks in the form of marketing services in exchange for surgical referrals, the Department of Justice announced today.

“Health care providers that attempt to profit from illegal kickbacks will be held accountable,” said Principal Deputy Assistant Attorney General Chad A. Readler, head of the Justice Department’s Civil Division.  “Improper financial incentives can distort medical decision making and drive up healthcare costs for federal health care programs and their beneficiaries.” 

The government alleged that, between 2009 and 2014, Pine Creek engaged in an illegal kickback scheme whereby the hospital would pay for marketing and/or advertising services on physicians’ behalf and, in return, the physicians would refer their patients, including Medicare and TRICARE beneficiaries, to Pine Creek.  Among other things, Pine Creek allegedly paid for advertisements on behalf of the physicians in a number of local and regional publications.  Pine Creek also allegedly paid for radio and television advertising, pay-per-click advertising campaigns, billboards, website upgrades, brochures, and business cards, as well as other forms of marketing to induce physicians to refer patients to Pine Creek for medical services.

“The United States Attorney’s Office, in coordination with our partners at Main Justice and HHS-OIG, have and will continue to aggressively pursue those that violate the Anti-Kickback Statute, regardless of the nature or form that the kickback takes,” said Erin Nealy Cox, the U.S. Attorney for the Northern District of Texas.  “We must hold individuals and entities responsible for improperly furthering their financial interests at the expense of the federal health care programs.”

As part of the settlement, Pine Creek has agreed to enter into a corporate integrity agreement with the Department of Health and Human Services Office of Inspector General (HHS-OIG), which obligates the defendants to undertake substantial internal compliance reforms for the next five years.

“Hospitals that try to boost their profits by paying kickbacks to physicians will instead pay for their improper conduct,” said Special Agent in Charge C.J. Porter, Department of Health and Human Services, Office of Inspector General’s Dallas Region.  “We will continue to investigate such illegal business arrangements that undermine impartial medical judgment.”

The settlement resolves allegations originally brought in a lawsuit filed by whistleblowers under the qui tam provisions of the False Claims Act, which allow private parties to bring suit on behalf of the government and to share in any recovery.  The whistleblowers, Suzanne Scott and Savannah Sogar, former employees of Pine Creek’s marketing department, will receive $1,125,000.

The government’s intervention in this matter illustrates its emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act.  Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).

The case was handled by the U.S. Attorney’s Office for the Northern District of Texas and the Justice Department’s Civil Division, with assistance from the Federal Bureau of Investigation, and in coordination with the U.S. Department of Health and Human Services Office of Inspector General. 

The lawsuit is captioned U.S. ex rel. Suzanne Scott, et al. v. Pine Creek Medical Center, LLC, Case No. 3:14-cv-3065 (N.D. Tex.). The claims settled by this agreement are allegations only; there has been no determination of liability.

LUBBOCK — Four Lubbock residents have been charged in a federal indictment, unsealed today, with felony offenses stemming from their role in a furanyl fentanyl distribution conspiracy, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.

The defendants made their initial appearances in federal court in Lubbock before U.S. Magistrate D. Gordon Bryant, Jr. and will remain in custody pending trial.

The four-count indictment charges Steven Lawrence Forcum, 32; Krisandrea Monee Dobbs, 31; Peyton Cleveland Wilson, 27; and Ashlyn Paige Utley, 23, with one count of conspiracy to distribute and possess with intent to distribute furanyl fentanyl. In addition, Utley and Wilson are charged with one count of distribution and possession with intent to distribute furanyl fentanyl.  Wilson is also charged with one count of possession of a firearm in furtherance of a drug trafficking crime.

A federal indictment is an accusation by a grand jury.  A defendant is entitled to the presumption of innocence unless proven guilty.  If convicted, however, 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 defendant’s prior criminal record (if any), the defendant’s role in the offense and the characteristics of the violation.   

The Drug Enforcement Administration and the Lubbock Police Department are in charge of the investigation.

Assistant U.S. Attorney Russell Lorfing is in charge of the prosecution.

# # #

AMARILLO, Texas — Two defendants, who pleaded guilty to their respective roles in  distributing large quantities of methamphetamine in Amarillo, Texas, were sentenced this afternoon by U.S. District Judge Sidney A. Fitzwater, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.

Benigno Paez, 29, was sentenced to a total of 248 months in federal prison. He pleaded guilty in August 2017 to one count of possession with intent to distribute methamphetamine and one count of possession of a firearm in furtherance of a drug trafficking crime.

Co-conspirator Eliazar Rocha, 35, also pleaded guilty in August 2017 to one count of possession with intent to distribute methamphetamine and was sentenced to 108 months in federal prison.

Judge Fitzwater ordered Paez and Rocha to surrender to the Bureau of Prisons on January 9, 2018.

According to the plea agreement factual resumes filed for both defendants, on April 30, 2017, Rocha, Paez and two other codefendants met with undercover officers to deliver six pounds of methamphetamine in exchange for $5,500 per pound. Rocha exited a vehicle, driven by Paez, to deliver the methamphetamine at which time officers indicated they did not have the money with them. When Rocha returned to the vehicle officers arrested the four defendants. Officers located 2,622 grams of methamphetamine in the vehicle and a stolen firearm.

Agents learned that the methamphetamine came from a residence in Amarillo, Texas. A search warrant was executed at the residence and law enforcement located an additional 1,846 grams of methamphetamine.

The case was investigated by the Drug Enforcement Administration. Assistant U.S. Attorney Joshua Frausto was in charge of the prosecution.

           

# # #

AMARILLO, Texas — Eduardo Gutierrez-Zamora, 31, of Amarillo, Texas, was sentenced yesterday by U.S. District Judge Sidney A. Fitzwater to 210 months in federal prison on a methamphetamine distribution conviction, announced Erin Nealy Cox, U.S. Attorney for the Northern District of Texas.

Gutierrez-Zamora pleaded guilty in June 2017 to one count of conspiracy to distribute or possess with intent to distribute 500 grams or more of methamphetamine.  He has been in custody since January 8, 2017 on a related criminal complaint. Gutierrez-Zamora was in the United States illegally at the time of the offense and will be deported after serving his sentence.

According to the plea agreement factual resume filed in the case, on January 7, 2017, the Texas Department of Public Safety (TXDPS) received information from the Arizona state police that they stopped a vehicle for a traffic violation and the narcotic detection canine alerted to the vehicle. The trooper located eight bundles of suspected methamphetamine in the vehicle. Arizona officers informed TXDPS that the driver was willing to cooperate with law enforcement and deliver the methamphetamine to the intended recipient, Gutierrez-Zamora, in Amarillo, Texas.

The driver called Gutierrez-Zamora and was instructed to deliver the methamphetamine to Gutierrez-Zamora at his residence. Once the delivery was made, agents executed a search warrant at the residence and located the methamphetamine delivered and additional narcotics.

The Drug Enforcement Administration, U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and TXDPS investigated.  Assistant U.S. Attorney Joshua Frausto prosecuted.    

 

# # #

AMARILLO, Texas — A 49-year-old man from Bushland, Texas, Thomas Roy Clark, who pleaded guilty in August 2017 to one count of health care fraud, was sentenced today by U.S. District Judge Sidney A. Fitzwater to 41 months in federal prison and ordered to pay $514,576.29 in restitution, joint and severally with his codefendant. The announcement was made today by U.S. Attorney Erin Nealy Cox of the Northern District of Texas.

As part of the plea agreement Clark agreed to forfeit a total of $84,750.23. Judge Fitzwater ordered Clark to surrender to the Bureau of Prisons on January 9, 2018.

 

According to the plea agreement factual resume, from July 2012 through July 2015, Clark operated Panhandle Chiropractic Clinic (PCC) in Amarillo, Texas, without a license issued by the Texas Board of Chiropractic Examiners. Co-defendant Karen Denise Jones, 56, assisted Clark in billing insurance companies on PCC’s behalf for services properly billable only by a licensed chiropractor. They also billed for services not rendered and for services rendered in lesser quantities billed.

 

Clark and Jones would omit Clark’s name or national provider identifier on PCC’s itemized billing statements, which prevented insurance companies from knowing they were being billed for services provided by a chiropractor without a license. Clark and Jones also listed the specific type of procedure or service PCC provided by misrepresenting to insurance companies that the procedures being billed were performed by a licensed health care provider in good standing with their state board.

 

Health care providers issued approximately $524,547.89 in payments to PCC from 12 insurance companies.

 

The case was investigated by the Federal Bureau of Investigation and the Randall County Sheriff’s Office.

Assistant U.S. Attorney Joshua Frausto was in charge of the prosecution.

# # #

AMARILLO, Texas — Neal Edmond Brown, 46, of Canyon, Texas, appeared this afternoon before U.S. District Judge Sidney A. Fitzwater and pleaded guilty to a superseding information charging one count of possession of prepubescent child pornography, announced Erin Nealy Cox, United States Attorney for the Northern District of Texas.

Brown faces a maximum penalty of not more than 20 years in federal prison, a $250,000 fine and a lifetime of supervised release. Brown has been in custody since his arrest in October 2017 and is scheduled to be sentenced on March 26, 2018. 

According to the plea agreement factual resume filed in the case, the National Center for Missing and Exploited Children (NCMEC) received information that an image depicting child pornography had been uploaded using the Skype program. Law enforcement discovered that the IP address responsible for uploading the image belonged to the Region 16 Education Service Center (ESC) in Amarillo, Texas. With the assistance from Region 16 ESC personnel, agents were able to verify that Brown, the Director of School Finance Operations at Region 16 ESC, was uploading child pornography from his work computer. 

On June 21, 2017, a search warrant was executed at Region 16 ESC and agents seized several electronic devices located in Brown’s office. A forensic examination revealed that the electronic devices contained over 900 images of child pornography and over 200 videos 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 Amarillo Police Department are investigating the case. Assistant U.S. Attorney Joshua Frausto is in charge of the prosecution.

 

# # #

DALLAS — A federal grand jury returned a two-count indictment earlier this month charging Freddie Thomas Gilbert, 33, of Dallas, Texas, with offenses related to the October 29, 2017 shooting of a vehicle in Kaufman County, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.

The indictment charges Gilbert with one count of possession of a firearm by a felon and one count of possession with intent to distribute a controlled substance. Gilbert will remain in custody pending further court hearings.

According to the complaint affidavit filed in the case and unsealed today, on October 29, 2017 law enforcement officials in Kaufman County received a call that the driver of a black Hyundai Elantra had fired a round of ammunition at their vehicle in the area of United States Highway 80 and County Road 212 in Kaufman County. Law enforcement officials were able to locate the vehicle and initiated a traffic stop. A vehicle pursuit ensued, reaching speeds up to one hundred and ten miles per hour when the vehicle refused to stop. The vehicle eventually became involved in a vehicle accident with another vehicle on the roadway. Gilbert was identified as the driver of the black Hyundai Elantra.

 

Subsequent to Gilbert’s arrest, he told law enforcement officials that the body of a girl was in the trunk of the vehicle. Law enforcement officials found a female victim in the trunk of the vehicle who had a visible gunshot wound to the head. Law enforcement officials also found a Taurus .38 caliber revolver in the side-pocket of the driver’s side door and a detectable amount of cocaine. 

 

Prior to October 29, 2017, Gilbert had been convicted in the state of Louisiana and served jail time for felony drug offenses.

 

An indictment is an accusation by a grand jury and a defendant is entitled to the presumption of innocence unless proven guilty.  If convicted, however, Gilbert faces up to 10 years in federal prison for being a convicted felon in possession of a firearm, and a maximum penalty of up to 20 years in federal prison and a $1,000,000 fine for the possession of a controlled substance count.

The Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, Texas Department of Public Safety, Kaufman County Sheriff’s Office and the Forney Police Department conducted the investigation.  Assistant U.S. Attorney P.J. Meitl is in charge of the prosecution.

 

 

# # #

DALLAS — Jason Lee Randall, 33, of Mesquite, Texas, was sentenced yesterday by U.S. District Judge Sam A. Lindsay to 540 months in federal prison, following his guilty plea in January 2017 to multiple child pornography offenses, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.

Randall pleaded guilty to production of child pornography, transportation of child pornography, possession of prepubescent child pornography and penalties for registered sex offenders.  Randall has been in custody since the time of his arrest in September 2016.

 

According to the indictment, factual resume, and information from his sentencing hearing, Randall, a registered sex offender previously convicted of several possession-of-child-pornography charges, used an online alias of “Emily Randall” to communicate with other children on the internet.  Randall, using various online accounts, pretended to be a 12-year-old girl and convinced other girls he met online to engage in sexually explicit conduct and create child pornography of themselves.  Randall would then send this child pornography to other children to convince them to engage in sexually explicit conduct and create more child pornography.  On at least one occasion, Randall video-chatted with a child and engaged in a sex act visible to the child.  Randall victimized at least twenty girls around the world, the majority of which were between the ages of 9 and 13 years old.  Randall also possessed thousands of images and videos of prepubescent child pornography, including videos involving infants being sexually abused.    

 

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 investigation was conducted by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Mesquite Police Department in Texas, and the Burrillville Police Department in Rhode Island.  Assistant U.S. Attorney Jamie L. Hoxie was in charge of the prosecution.

 

# # #

DALLAS — Christopher Arnold Jiongo, 57, of Houston, Texas, appeared this morning before U.S. District Judge Sidney A. Fitzwater and was sentenced to 46 months in federal prison and ordered to pay $3,786,595 in restitution for his role in a diamond investment scheme, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.

Jiongo pleaded guilty in May 2017 to one count of wire fraud. Judge Fitzwater ordered Jiongo to report to the Bureau of Prisons on January 9, 2018.

Co-defendants Craig Allen Otteson, 65, and Jay Bruce Heimburger, 59, were previously sentenced by Judge Fitzwater to 121 months and 97 months, respectively, in federal prison.  Jiongo received a reduction to his sentence due to his early guilty plea and cooperation with the government’s investigation, as well as his testimony at Heimburger’s recent sentencing hearing.

According to the plea agreement factual resume filed in the case, Otteson acted as the Managing Member and Chief Compliance Officer of Stonebridge Advisors, LLC, located in Dallas.  Stonebridge Advisors was involved as the Managing Partner of Worldwide Diamond Ventures, L.P., also located in Dallas, and it acted as the General Partner of Worldwide Diamond.  Heimburger acted as a Principal Partner of Worldwide Diamond, and he was also listed as the registered agent and Director of JBH Securities, Inc. located in Dallas. JBH Securities was primarily involved in the business of providing investment advice. Worldwide Diamond was primarily involved in the business of buying and reselling diamonds on the international market.  On October 1, 2013, Worldwide Diamond filed for bankruptcy in the Northern District of Texas.

The indictment charged that Jiongo drafted $50,000 diamond notes which Jiongo, Otteson and Heimburger later used as investment vehicles to generate investment funds. As part of their original business plan, Jiongo, Otteson and Heimburger represented to American Safe Retirements (ASR) that all investment funds would be used to buy and resell diamonds and that every dollar invested would always be fully secured by the cash and diamond inventory of Worldwide Diamond.  Jiongo, Otteson and Heimburger all understood that ASR would instruct ASR sales agents to represent to investors that every dollar invested through the diamond notes would always be fully secured by the cash and diamond inventory of Worldwide Diamond.

 

The indictment also alleged that sometime in the summer of 2011, Jiongo, Otteson and Heimburger all realized that their original business plan was not working out as planned and that the defendants therefore could not honor the original promises and representations made to investors. Rather than inform ASR and the investors of the changed circumstances caused by their failed business plan, Jiongo, Otteson and Heimburger chose to deceive ASR when they failed to inform ASR that 100% of all investment funds would not be secured by cash and/or the diamond inventory of Worldwide Diamond. By deceiving ASR, Jiongo, Otteson and Heimburger knew that they were also causing the investors to be deceived about the use of investor funds.

 

The indictment alleged that during the period from 2011 through 2013, Otteson, Heimburger, and Jiongo caused over $6.4 million to be fraudulently collected from 77 Worldwide Diamond investors. 

 

This case is one of many felony indictments of bankruptcy-related crimes prosecuted as part of the Bankruptcy Fraud Initiative (BFI), United States Attorney’s Office, Northern District of Texas. These prosecutions were the result of criminal referrals made by the United States Trustee’s Office in Dallas, Texas. Since 2013, as a result of the BFI, 23 defendants have been convicted and 2 defendants are pending trial.

The U.S. Postal Inspection Service investigated the case. Assistant U.S. Attorney David Jarvis prosecuted.

# # #

DALLAS — Gregorio Alexandro Landeros, 30, of Dallas, Texas, was sentenced this morning by U.S. District Judge Sidney A. Fitzwater to 210 months in federal prison, following his guilty plea to one count of receipt of child pornography, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.

According to the plea agreement factual resume filed in the case, in June 2015, the father of a fourteen year old minor female child, Jane Doe 1, reported that he had reviewed his daughter’s cellular telephone and noticed that a person named “Alex” had sent nude videos to the child and requested that the child send photos and videos of herself to him. Texts from “Alex” stated that he was 17 years old and that Jane Doe 1 had told “Alex” she was 15 years old. Text messages were also sent to Jane Doe 1 directing her on how to produce sexually explicit videos. Law enforcement determined that the cellular telephone number used by “Alex” belonged to Landeros.

 

A search warrant was obtained for Landeros’ cell phone and a review of the phone revealed images of child pornography of Jane Doe 1 that Landeros had the child produce and send to him.

 

On March 30, 2016, Landeros was arrested and consented to an interview, according to the plea agreement factual resume. Landeros admitted to using his cellular telephone to misrepresent himself as a teenage male to Jane Doe 1 and multiple other minor females in hopes of obtaining sexual images from them. Landeros solicited female minors because he felt they were the most likely to provide him with nude images. Landeros used the photographs of younger friends and random nude images from the internet to mask his identity while communicating with the children.

 

At the time of his arrest, Landeros possessed a total of 206 images and 22 videos of child pornography on his cellular telephone.

 

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 investigated.  Assistant U.S. Attorney Shane Read prosecuted.

 

# # #

DALLAS — Edgar Solorzano, 24, of Dallas, was sentenced today before U.S. District Judge Sam A. Lindsay to 231 months in federal prison for the November 19, 2015 armed assault of two federal law enforcement officers in southwest Dallas, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.

In April 2017, Solorzano pleaded guilty to one count of possession with intent to distribute a controlled substance, two counts of assault on a federal officer and one count of using, carrying, brandishing and discharging a firearm during in relation to a crime of violence.  He has been in custody since the time of his arrest in August 2016.

Co-defendant Victor Manuel Solorzano, 32, was convicted, following a four-day trial, of one count of possession with intent to distribute methamphetamine, two counts of assault of a federal officer, and two counts of using, carrying, brandishing and discharging a firearm during and in relation to a crime of violence.  Victor Solorzano was sentenced on November 2, 2017 to 567 months in federal prison. 

According to documents filed in the case, on November 19, 2015, Victor and Edgar Solorzano, cousins who lived across the street from each other, fired numerous gunshots at two federal officers with the U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) with high-powered, semi-automatic firearms, and riddled their pickup truck with bullets as the officers fled.

Officers went to install a court-ordered tracking device on Victor Solorzano’s vehicle at his residence on Wilbur Street in Dallas, Texas. Victor was under federal investigation by HSI for trafficking methamphetamine at the time. Immediately after installing the tracking device on Victor’s vehicle, Victor, armed with a pistol, confronted the officer in the street and began firing at the officer. The officer got inside the passenger’s side of a pickup as Victor and Edgar began firing numerous gunshots at the two federal officers, who did not return fire. Victor and Edgar continued firing at the federal officers as they sped away. The officer who installed the court-ordered tracking device sustained four non­fatal bullet wounds and the pickup driven by the other officer sustained numerous bullet strikes, all from the back. 

After the shooting, Edgar hid the pistol in the attic of his residence and the pistol used by Victor in a neighbor’s backyard. The police searched Edgar’s residence and found the pistol hidden in the attic. The police also found in Edgar’s bedroom more than eight grams of methamphetamine, drug-distribution paraphernalia, and a variety of firearms and ammunition. The pistol used by Victor was found in the neighbor’s backyard.

The Federal Bureau of Investigation, the Dallas Police Department and U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated.  Deputy Criminal Chief Assistant U.S. Attorney Gary Tromblay and Assistant U.S. Attorneys John Kull and Rachael Jones prosecuted.

 

 

# # #

DALLAS — Fifteen members and associates of the white supremacist organization, Aryan Circle, have been charged in a federal indictment with offenses stemming from their roles in a methamphetamine distribution conspiracy that operated from January 2017 through November 2017. U.S. Attorney Erin Nealy Cox of the Northern District of Texas made the announcement today.

Eleven defendants were arrested and four others are in state custody. The eleven arrested have made their initial appearances in federal court and will remain in custody pending further court hearings.

 

Defendants, mostly residents of the area surrounding Lake Tawakoni, who are charged in this indictment include:

            Crystal Leann Sharkey, aka “Crystal Leann Jordan,” 36

            Michael Paul Watts, 28

            Jason Wayne McClure, 43

            Kellie Lea Locke, 37

            Michael Brandon Powell, 43

            Jody Heather Bausch, aka “Jody Land,” 41

            Scott Ralph Land, 47

            Jeremiah Jason McGregor, aka “Wicked,” 40

            James Earl Goodin, aka “Bo,” 35

            Nicole Joni Culpepper, 27

            Kyle Quincy Ketchum, 30

            Ember Nicole Berg, 33

            Shannon Marie Morgan, 42

            Aaron Dewayne Marrs, 39

            Leslie Irene Cates, 34

 

This just-unsealed indictment charges all of the above-listed defendants, with one count of conspiracy to possess with intent to distribute a controlled substance and one count of possession of a controlled substance with intent to distribute.  The indictment also includes a forfeiture allegation that would require the defendants, upon conviction, to forfeit any property that constitutes or was derived from proceeds traceable to the offense, including multiple firearms.

A federal indictment is an accusation by a grand jury.  A defendant is entitled to the presumption of innocence unless proven guilty.  If convicted, however, 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 defendant’s prior criminal record (if any), the defendant’s role in the offense and the characteristics of the violation.

 

The investigation is being led by the Bureau of Alcohol Tobacco and Firearms and Texas Department of Public Safety, with assistance from the Henderson County Sheriff, Hunt County Sheriff, Quinlan Police Department, Rockwall County Sheriff, Texas Highway Patrol, and Van Zandt Sheriff.

Assistant U.S. Attorney P. J. Meitl is prosecuting.

# # #

LUBBOCK, Texas — A 45-year-old San Angelo, Texas, man, Michael Doerr, who pleaded guilty in August 2017 to one count of receipt of a visual depiction of a minor engaging in sexually explicit conduct, was sentenced today by U.S. District Judge Sam R. Cummings to 121 months in federal prison, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.

Judge Cummings remanded Doerr into immediate custody to begin serving his sentence.

According to plea documents filed in the case, on August 25, 2016, Doerr used computer hard disk drives to save images and videos depicting minors engaged in sexually explicit conduct. Doerr received the material over the Internet and saved the material on the hard disk drives at his residence. 

The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 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 Department of Homeland Security, Homeland Security Investigations, the Texas Department of Public Safety, and the San Angelo Police Department investigated the case.  Assistant U.S. Attorney Steven M. Sucsy prosecuted.

# # #

LUBBOCK, Texas — Tarvinn Djuan Williams, 29, of Lubbock, Texas, was sentenced today by U.S. District Judge Sam R. Cummings to 188 months in federal prison, following his guilty plea in August 2017 to one count of production of child pornography, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.

Williams has been in custody since his arrest in June 2017.

According to plea documents filed in the case, on March 26, 2017, Williams made contact through Facebook messaging with a 16-year-old minor female, Jane Doe l, for the purpose of convincing her to engage in sexually explicit conduct with him. Williams concealed his true identity by representing himself to be “Samantha Pena,” a female alias that he created for the purpose of recruiting females to engage in sex acts with Williams.

Williams, representing himself to be “Samantha Pena,” convinced Jane Doe l to meet him to engage in sexual intercourse with him and represented that “Samantha Pena” would pay Jane Doe 1 to engage in the sex acts with Williams. Jane Doe 1 met with Williams at least three times and engaged in sexual intercourse with him.

 

In the course of the communications between Williams, using the identity of “Samantha Pena,” and Jane Doe 1, Williams asked Jane Doe l to take sexually explicit pictures and send them to Pena. “Samantha Pena” told Jane Doe 1 that she wouldn’t be required to have sex with Williams if she would send the sexually explicit material. Jane Doe 1 complied with the requests and took and sent pictures and one video. “Samantha Pena” made repeated promises to Jane Doe l that she would be paid, but “Samantha Pena” never paid Jane Doe 1.

 

The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 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 Lubbock Police Department investigated. Assistant U.S. Attorney Steven M. Sucsy prosecuted.

# # #

DALLAS – Erin Nealy Cox has taken the oath of office to become the United States Attorney for the Northern District of Texas. Ms. Nealy Cox was nominated by President Donald Trump on September 22, 2017 and confirmed by the U.S. Senate on November 9, 2017. She took the oath of office from U.S. District Judge Jane J. Boyle.  She succeeds John Parker who has been serving as the United States Attorney since December 2014.

 

“I am honored to return to the United States Attorney’s Office and I am looking forward to working with the great people here, our many law enforcement partners, and all those in the community who have a commitment to the pursuit of justice,” said U.S. Attorney Nealy Cox.

 

As U.S. Attorney, Ms. Nealy Cox is the top-ranking federal law enforcement official in the Northern District of Texas, which includes Dallas, Fort Worth, Lubbock and Amarillo. She oversees a staff of 215 employees, including 100 attorneys and a similar number of non-attorney support personnel. The office is responsible for prosecuting federal crimes in the district, including crimes related to terrorism, public corruption, child exploitation, firearms, and narcotics. The office also defends the United States in civil cases and collects debts owed to the United States.

 

Ms. Nealy Cox, a Mississippi native, most recently worked as a Senior Advisor at McKinsey & Co. in the cybersecurity and risk practice. She also served on the Board of Directors of Sally Beauty Holdings, a large retailer on the NYSE. From 1999 to 2008, Ms. Nealy Cox served as an Assistant United States Attorney in the Northern District of Texas, where she prosecuted cyber crimes, white collar crimes, and general crimes. In 2004 and 2005, she served at Main Justice as chief of staff and senior counsel to the Assistant Attorney General in the Office of Legal Policy. From 2008 to 2016, Ms. Nealy Cox was a member of the executive leadership team at Stroz Friedberg, a cybersecurity and investigations consulting firm. Ms. Nealy Cox ultimately lead the firm’s global incident response business, the unit responsible for assisting and supporting private sector corporations investigate complex computer intrusions. Ms. Nealy Cox clerked for the Honorable Henry A. Politz, when he served as Chief Judge of the United States Court of Appeals for the Fifth Circuit, and the Honorable Barefoot Sanders, United States District Judge in the Northern District of Texas.

 

Ms. Nealy Cox received her J.D., magna cum laude, from Southern Methodist University Dedman School of Law and her B.B.A. in finance from the McCombs School of Business at the University of Texas at Austin. She is a member of the Texas and New York Bar Associations.

 

As she took on her new responsibilities, U.S. Attorney Nealy Cox thanked Mr. Parker for his many years of public service with the U.S. Attorney’s Office and his commitment to justice over the last three years as he served as the United States Attorney. 

 

 

# # #

DALLAS — Fourteen defendants have been charged in a federal indictment, unsealed yesterday, with felony offenses stemming from their role in a Dallas–based criminal street gang known as “YNB Stretch Gang” and a drug distribution group known as “2600 Money Block,” announced U.S. Attorney John Parker of the Northern District of Texas.

“These violent, drug-dealing gangs should be on notice,” said U.S. Attorney Parker.  “We’re going after them wherever they are.”

 

Ten defendants, mostly from Dallas, were arrested earlier last week and one is in custody on state charges. Those arrested made their initial appearances in federal court and were detained.  Three remain fugitives.

In connection with the takedown, law enforcement seized quantities of cocaine, crack cocaine, PCP, prescription pills, marijuana and multiple firearms, including an assault rifle.

The 26-count indictment charges the following: Nykees Earl Campbell, aka “#1,” “NaNa,” “Ny-Nizzle,” 19; Avery Wayne Davis, aka “AD,”  36; Demond Lynn, aka “Slime,” 36; Kearwon Dmargo Magee, 23; Rodney Eugene Roquemore, aka “Turbo,” 31; Lawrence Williams, aka “One Eye”; Kris Landon Greene, aka “#5,” 20; Bryson Deontae Bright, 24; Ralph Earl Campbell III, 22; Garry Dewayne Newton, aka “#4,” 20; Stacy Moore, aka “Jay,” 23; Marcus Jackson, aka “Marty-Mar,” 23; Mitchell Holmes; Cedric Charles Witcher, 22.

The indictment alleges, beginning in January 2016, the defendants used an area in Dallas referred to as “2600 Money Block” to cut, package and distribute cocaine, crack cocaine, marijuana, methamphetamine and ecstasy/OxyContin pills to numerous customers. The proceeds from the sale of drugs were used to produce music videos glorifying acts of violence and promoting the lifestyle of YNB Stretch Gang members and associates.

 

Prosecutors are seeking to forfeit several things used as part of or as a result of the criminal conspiracy, including multiple firearms.

A federal indictment is an accusation by a grand jury.  A defendant is entitled to the presumption of innocence unless proven guilty.  If convicted, however, 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 defendant’s prior criminal record (if any), the defendant’s role in the offense and the characteristics of the violation.   

This indictment is the result of an investigation by the Bureau of Alcohol Tobacco and Firearms, United States Marshal’s Service, Dallas Police Department and the Federal Bureau of Investigation. The case is being prosecuted by Deputy Criminal Chief Assistant U.S. Attorney Rick Calvert.

# # #

FORT WORTH, Texas — Bruce Trenshel Davis, aka “Wheatie,” 25, of Shreveport, Louisiana and Brandon Ray Austin, aka “Pep,” 31, of Fort Worth, Texas, appeared yesterday in federal court before U.S. Magistrate Judge Jeffrey L. Cureton, on a federal criminal complaint stemming from their attempt to threaten witnesses who were cooperating with law enforcement in the prosecution of a child sex trafficking organization, announced U.S. Attorney John Parker of the Northern District of Texas.

 

The complaint charges both Davis and Austin with one count of attempting to obstruct or interfere with enforcement and one count of tampering with a witness, victim, or informant.  Magistrate Judge Cureton ordered both defendants to remain in custody pending further court hearings.

 

“Protecting victims and witnesses is one of the most important jobs of law enforcement,” said U.S. Attorney Parker.  “We will aggressively prosecute those who attempt to threaten, intimidate, or do physical harm against those who cooperate and work with law enforcement.  That commitment is never more steadfast than in cases such as this, involving violent threats against minor female victims who have been sexually exploited.”

 

In March of 2017, the Fort Worth Police Department’s VICE Unit conducted a recovery operation in response to a lead sent from the National Center for Missing and Exploited Children (NCMEC) in reference to a suspected victim of Child Sex Trafficking. Fort Worth VICE Unit located and utilized a Backpage.com ad containing photographs of a minor female that advertised commercial sex acts.  As a result of the operation, the minor female was recovered. Additionally, two other minor females, Jane Doe 2 and Jane Doe 3, were also located. The operation resulted in eight men being arrested on sex trafficking of children charges.

 

Demarcus Davis, Kentrell Davis, Pierre Lagrone, Herman Sanders and Reginald Smith were among the eight charged.

 

According to the affidavit filed with the complaint, on July 25, 2017, Bruce Davis, a relative of Demarcus Davis and Kentrell Davis, sent threatening text messages to Jane Doe 2, the 17-year-old female victim in the case mentioned above. Bruce Davis threatened physical harm to Jane Doe 2 and her family because he believed she was cooperating with law enforcement in the prosecution of Kentrell Davis and Demarcus Davis.

 

Another witness who cooperated with law enforcement and provided valuable evidence that detailed the size and scope of the same child sex trafficking organization received threats from Austin, according to the affidavit. Austin was friends with Lagrone, Sanders and Smith. On October 18 and 19, 2017 Austin sent text messages to the witness threatening her in relation to her cooperation in the prosecution of Lagrone, Sanders and Smith.

 

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 penalty for the offense is not more than 20 years in federal prison.

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 are investigating.  Assistant U.S. Attorney P.J. Meitl is in charge of the prosecution.

# # #

FORT WORTH, Texas — Timothy Paul Malone, 39, of River Oaks, Texas, appeared this morning before U.S. Magistrate Judge Jeffrey L. Cureton and pleaded guilty to three child pornography counts, announced John Parker, United States Attorney for the Northern District of Texas.

Malone pleaded guilty to two counts of sexual exploitation of children and one count of attempted sexual exploitation of children. Malone faces a maximum term of imprisonment of not less than 15 years and not more than 90 years, a total of $750,000 in fines and up to a lifetime of supervised release. Malone has been in custody since the time of indictment in September 2017.  He is scheduled to be sentenced on March 5, 2018.

According to documents filed in the case, Malone persuaded and enticed two minor children in Watauga and Haslet, Texas to engage in sexually explicit conduct for the purpose of producing a video. Malone also attempted to use another minor child to create a video of the minor engaged in sexually explicit conduct.

In January 2017, law enforcement conducted a search warrant, according to plea documents, at Malone’s residence and seized a number of electronic devices. An examination of the devices revealed a number of child pornography videos and images including those of the minors previously mentioned.

The matter was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 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.”

River Oaks Police Department, Tarrant County District Attorney’s Digital Forensics Unit, and U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated the case. Assistant U.S. Attorney A. Saleem is in charge of the prosecution.

# # #

DALLAS — Craig Allen Otteson, 65, of McKinney, Texas, and Jay Bruce Heimburger, 59, of Dallas, appeared this afternoon before U.S. District Judge Sidney A. Fitzwater and were sentenced for their roles in a diamond investment scheme, announced U.S. Attorney John Parker of the Northern District of Texas.

Otteson and Heimburger both pleaded guilty in July 2017 to one count of mail fraud. Judge Fitzwater sentenced Otteson to 121 months in federal prison and ordered him to pay $4,704,784 in restitution. Heimburger was sentenced to 97 months in federal prison and ordered him to pay $4,707,794 in restitution.

Co-defendant Christopher Arnold Jiongo, 57, of Houston, pleaded guilty to his role in the scheme and is scheduled to be sentenced on November 21, 2017.

According to documents filed in the case, Otteson acted as the Managing Member and Chief Compliance Officer of Stonebridge Advisors, LLC, located on Belt Line road in Dallas.  Stonebridge Advisors was involved as the Managing Partner of Worldwide Diamond Ventures, L.P., located at 6029 Belt Line in Dallas, and it acted as the General Partner of Worldwide Diamond.  Heimburger acted as a Principal Partner of Worldwide Diamond, and he was also listed as the registered agent and Director of JBH Securities, Inc. located on San Rafael in Dallas.  JBH Securities was primarily involved in the business of providing investment advice.  Worldwide Diamond was primarily involved in the business of buying and reselling diamonds on the international market.  On October 1, 2013, Worldwide Diamond filed for bankruptcy in the Northern District of Texas.

The indictment charged that Jiongo drafted $50,000 diamond notes which Jiongo, Otteson and Heimburger later used as investment vehicles to generate investment funds.  As part of their original business plan, Jiongo, Otteson and Heimburger represented to American Safe Retirements (ASR) that all investment funds would be used to buy and resell diamonds and that every dollar invested would always be fully secured by the cash and diamond inventory of Worldwide Diamond.  Jiongo, Otteson and Heimburger all understood that ASR would instruct ASR sales agents to represent to investors that every dollar invested through the diamond notes would always be fully secured by the cash and diamond inventory of Worldwide Diamond.

 

The indictment also alleged that sometime in the summer of 2011, Jiongo, Otteson and Heimburger all realized that their original business plan was not working out as planned and that the defendants therefore could not honor the original promises and representations made to investors.  Rather than inform ASR and the investors of the changed circumstances caused by their failed business plan, Jiongo, Otteson and Heimburger chose to deceive ASR when they failed to inform ASR that 100% of all investment funds would not be secured by cash and/or the diamond inventory of Worldwide Diamond.  By deceiving ASR, Jiongo, Otteson and Heimburger knew that they were also causing the investors to be deceived about the use of investor funds.

 

According to the plea documents signed by Otteson, during the period from February 2012 through March 2013, Otteson and Heimburger engaged in a scheme to defraud investors, and to obtain money and property from these investors by false and fraudulent pretenses, representations, and promises.  In plea papers filed with the court, Otteson admitted that he and Heimburger engaged in a scheme to defraud investors by fraudulently concealing from investors that investor funds were being used for unauthorized purposes unrelated to the purchase and resale of diamonds.  Otteson also admitted that as part of the scheme to defraud investors, Otteson and Heimburger caused their sales agent to fraudulently sell promissory notes valued at $1,280,000 to 23 new clients in California.      

 

The indictment alleged that during the period from 2011 through 2013, Otteson, Heimburger, and Jiongo caused over $6.4 million to be fraudulently collected from 77 Worldwide Diamond investors.  During the sentencing hearing, witnesses testified that in June 2011 Otteson and Heimburger caused letters to be sent to the Texas State Securities Board and to ASR which contained false statements.

 

This case is one of many felony indictments of bankruptcy-related crimes prosecuted as part of the Bankruptcy Fraud Initiative (BFI), United States Attorney’s Office, Northern District of Texas.  These prosecutions were the result of criminal referrals made by the United States Trustee’s Office in Dallas, Texas.  Since 2013, as a result of the BFI, 23 defendants have been convicted and 2 defendants are pending trial.

The U.S. Postal Inspection Service investigated the case.  Assistant U.S. Attorney David Jarvis prosecuted.

# # #

FORT WORTH — Melvin Lewis Andrews, 55, of Oklahoma City, Oklahoma, was sentenced this week by U.S. District Judge Reed C. O’Connor to serve 188 months in federal prison, following his guilty plea in August 2017 to his role in the conspiracy to rob Haltom’s Jewelers in Grapevine, announced U.S. Attorney John Parker of the Northern District of Texas.

 

Andrews pleaded guilty to one count of interference with commerce by robbery. He has been in Federal custody since his arrest in March 2017.

 

According to plea documents filed in the case, on October 3, 2014, Andrews, along with co-defendants Garland Gilmore Lenoir III, Willie Thompson Jr., Tony Eugene Gabriel and Kim Yvette Brown, traveled to Haltom’s Jewelers in a stolen vehicle. Andrews, Lenoir, Thompson and Gabriel, entered the store wearing masks and carrying handguns and hammers. Andrews, Lenoir, and Gabriel smashed the display cases with hammers and stole merchandise, to include jewelry and watches.  After the robbery, Andrews was paid approximately $10,000 for his participation.

 

The FBI and Grapevine Police Department investigated the case.  Special Assistant U.S. Attorney Dan Cole was in charge of the prosecution.

# # #

DALLAS — A federal grand jury returned a eleven-count superseding indictment yesterday charging nine men with various violent offenses stemming from several armed robberies in North Texas, announced U.S. Attorney John Parker of the Northern District of Texas.

Yesterday’s indictment supersedes the August 2017 indictment by adding four defendants and additional robbery offenses. The following defendants, mostly from Cedar Hill, Texas, are charged with at least one count of interference with commerce by robbery:

            Charles Lampkins, aka “K3” and “Kc,” 20

            Justin Gilbert, aka “Slim,” 21

            Jahad Givens, aka “Had,” 21

            Terance Ross Johnson, aka “TJ,” 21

            Jaala Dill, 19, of Dallas

            Darius Devvion Hinton, aka “Stanka,” 20

            Billterious Dominique Lewis, aka “Bill T,” 21

            Xavion Mitchell George, 23

            Joel Louis Davis, 20

 

The defendants are scheduled to be arraigned later next week.

According to documents filed in the case, between October 2016 and May 2017, the defendants, led by Lampkin, committed a series of at least seven and up to forty robberies at various motels, hotels, and other commercial establishments throughout the Dallas-Fort Worth metroplex.  The robbery crew performed surveillance of victims and targeted locations and utilized firearms to intimidate their victims, often pointing guns at the heads of tellers and cashiers during the robberies. 

 

The robbers often disguised themselves during the robberies by wearing dark clothes, hoodies, and other items meant to conceal their true identity, including a distinguishable fake blue beard connected to a stocking cap.

 

A federal indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty.  If convicted, however, each interference with commerce by robbery count in the indictment carries a maximum statutory penalty of 20 years in federal prison and a $250,000 fine.  Lampkins is also charged with one count of using, carrying, brandishing, and discharging a firearm in furtherance of a crime of violence. The firearm count carries a maximum statutory penalty of life in federal prison and a $250,000 fine.

 

The case is being investigated by the Federal Bureau of Investigations, Plano Police Department, Carrollton Police Department, Addison Police Department, Farmers Branch Police Department, Grand Prairie Police Department, Arlington Police Department, Lewisville Police Department, Sulphur Springs Police Department, Dallas Police Department, and Cedar Hill Police Department.  Assistant U.S. Attorney P.J. Meitl in charge of the prosecution.

 

# # #

DALLAS — Roberto Carlos Puebla Saavedra, 32, originally from Cuba, was sentenced today by U.S. District Judge Sidney A. Fitzwater to 60 months in federal prison and ordered to pay $408,596.46 in restitution for his role in a conspiracy involving fraudulent purchases in North Texas using counterfeit bank cards, announced U.S. Attorney John Parker of the Northern District of Texas.

Saavedra pleaded guilty in June 2017 to one count of conspiracy to produce, use, or traffic a counterfeit access device.  He has been in custody since the time of his arrest in July 2016.

According to documents filed in the case, from at least August 2014 through July 2016, Saavedra, along with his co-defendants, obtained lists of credit and debit card numbers belonging to other individuals online.  They used the card information to create counterfeit bank cards using devices to encode the cards with the fraudulently obtained account information.  The defendants went to various retail stores and purchased prepaid gift cards and shopping cards with the counterfeit cards.  The defendants then took those purchased prepaid gift cards and shopping cards to other stores and purchased items, including other gift cards, to further launder the illegally obtained money.

 

The scheme was discovered after an investigator from JPMorgan Chase observed a large volume of fraudulent transactions being made with unauthorized JPMorgan Chase debit card numbers at Walmart stores in the Dallas-Fort Worth metroplex area.  JPMorgan Chase’s investigator worked with Walmart investigators to collect surveillance footage and conduct surveillance of the defendants engaging in the fraudulent transactions. 

 

The case was investigated by the U.S. Secret Service and the Plano Police Department.  Assistant U.S. Attorneys Jamie L. Hoxie and Shane Read prosecuted.

# # #

DALLAS — Daryl Glenn Pawlak, 39, of Burleson, Texas, was sentenced this morning by U.S. District Judge Sidney A. Fitzwater to 210 months in federal prison, followed by a 15-year term of supervised release, for child pornography offenses.  The announcement was made today by U.S. Attorney John Parker of the Northern District of Texas.

A federal jury convicted Pawlak of one count of receipt of child pornography and one count of access with intent to view material containing child pornography involving a prepubescent minor.  Following the verdict, Judge Fitzwater remanded Pawlak into custody. 

“Contrary to their innocent-sounding names, websites like Playpen facilitate the sexual victimization of children with ruthless efficiency,” said U.S. Attorney Parker. “Posts on these websites are frequently categorized within forums and sub-forums according to the child’s age, gender, and type of sexual abuse inflicted upon them.  Targeting these websites and those who run and use them is a critical part of protecting and rescuing these children.”

 

This case arose from an FBI undercover operation involving an illegal member-only hidden-services website called Playpen.  Playpen was dedicated to the advertisement and distribution of child pornography.   

 

Pawlak was one of the individuals caught as a result of the FBI’s operation when he logged onto the website in March 2015 and clicked on a post, which caused a network investigative technique to be launched from the site onto his computer.  Pawlak registered with the Playpen site in September 2014 and had spent approximately 14.6 hours logged into the website prior to the FBI’s two-week operation.  

 

The FBI spoke with Pawlak as a part of its investigation.  Pawlak confessed that he had been using his work computers to look at child pornography.  He told the FBI that he began looking at child pornography sometime in 2012, he used the Tor network to find child pornography, and estimated that he had spent, on average, approximately half an hour a week seeking out child pornography.  Pawlak told the FBI that he preferred child pornography that depicted girls between the ages of 7-11 years old. 

 

As a result of the FBI’s operation, at least 350 U.S.-based individuals have been prosecuted nationwide.  At least 55 American children who were subjected to sexual abuse have been successfully identified or rescued, including at least four in the North Texas area.  In addition, internationally, at least 296 sexually abused children internationally have been successfully identified or rescued as a result of the operation.  This case was prosecuted as a part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation.  For more information about Project Safe Childhood, please visit www.justice.gov/psc.

 

The FBI investigated this case.  Assistant U.S. Attorneys Jamie L. Hoxie and Paul Yanowitch prosecuted.

# # #

DALLAS — Rudolf Suter, 67, formerly of Dallas, appeared in federal court yesterday before U.S. District Judge David C. Godbey and was sentenced to time served (nearly 11 months in federal custody) for committing perjury in a federal proceeding under oath.  The announcement was made today by U.S. Attorney John Parker of the Northern District of Texas.

Based on witness testimony at the sentencing hearing, Judge Godbey ordered Suter to appear on March 9, 2016 for a show cause hearing to determine if Suter should be held in contempt for violation of several court orders in Civil Case No. 3:11-CV-02559-N.  Instead of appearing at the show cause hearing, Suter fled to Switzerland.  On March 10, 2016, Judge Godbey held Suter in civil contempt of court and also ordered the issuance of a civil contempt arrest warrant. 

In August and early September 2016, the United States Marshal Service (USMS) in Dallas had several contacts with Suter while he was in Switzerland.  Despite repeated efforts by the USMS encouraging Suter to return to Dallas, fugitive Suter refused to voluntarily surrender.

Based on witness testimony at the sentencing hearing, fugitive Suter traveled to Canada on September 13, 2016 and testified at a civil deposition.  In his sworn deposition testimony, Suter testified falsely under oath that he had “made arrangements” with the judge and caused the arrest warrant to be dismissed.

On December 11, 2016, Suter was arrested in New York City based on Judge Godbey’s civil contempt warrant when he attempted to re-enter the United States.  On January 6, 2017, a criminal complaint was filed in Dallas.  On January 17, 2017, Suter was ordered detained as a flight risk following a contested detention hearing.  Suter has remained continuously in custody for nearly 11 months since his arrest. 

According to the plea documents, on January 17, 2014, Suter filed a voluntary bankruptcy petition in U.S. Bankruptcy Court for the Northern District of Texas.  Suter concealed his true financial condition when he filed several bankruptcy related documents.  In his plea documents, Suter admitted to making a false statement under penalty of perjury in his filed Statement of Financial Affairs, in which Suter concealed several banks accounts which he recently closed.  Some of the concealed bank accounts were closed in December 2013, the month before he filed for bankruptcy.  After remaining a fugitive outside the United States for approximately nine months, on December 11, 2016, Suter was arrested as he attempted to re-enter the U.S. at JFK International Airport in New York City.  

This case is one of several felony prosecutions of bankruptcy-related crimes generated by the Bankruptcy Fraud Initiative in the Northern District of Texas.  Each felony indictment is the result of a bankruptcy criminal referral submitted to the United States Attorney’s Office by the United States Trustee’s Office in Dallas, Texas.  As part of that initiative, 23 defendants have been convicted and 2 defendants are pending trial.

The Internal Revenue Service Criminal Investigation was in charge of the investigation.  Assistant U.S. Attorney David Jarvis prosecuted.

# # #

FORT WORTH, Texas — Matthew McGaugh, 49, of Hensley, Arkansas, was sentenced yesterday by U.S. District Judge Reed C. O’Connor to 12 months in federal prison following his guilty plea in July 2017 to an indictment charging one count of sexual abuse of a ward, announced U.S. Attorney John Parker of the Northern District of Texas.

McGaugh, who is on bond, was ordered to surrender to the Bureau of Prisons on December 19, 2017.

According to documents filed in the case, on November 1, 2016, McGaugh, who was a Bureau of Prisons (BOP) Case Manager, engaged in multiple sexual acts with an inmate assigned to the BOP, Carswell Federal Medical Center in Fort Worth, Texas.  At the time these sexual acts occurred, the inmate was under the supervisory authority of McGaugh.

 

The Department of Justice Office of the Inspector General investigated the case.  Deputy Criminal Chief Assistant United States Attorney Alex Lewis prosecuted.

# # #

DALLAS — Christina Renee Caveny, 37, of Dallas, was sentenced today before U.S. District Judge David C. Godbey to 15 months in federal prison and ordered to pay $270,134.84 in restitution, following her guilty plea in June 2017 to one count of conspiracy to commit mail fraud, announced U.S. Attorney John Parker of the Northern District of Texas.

A federal grand jury in Dallas returned an indictment in December 2016 charging Caveny and three others with felony offenses stemming from a “foreclosure rescue scheme” they ran from approximately February 2012 through January 2013.  Mark Demetri Stein, 36, of Carrollton, Texas, is awaiting trial.  Richard Bruce Stevens, 51, of San Antonio, Texas, pleaded guilty and is scheduled to be sentenced on December 4, 2017.  Bruce Kevin Hawkins, 52, of Desoto, Texas, also pleaded guilty and was sentenced to 41 months in federal prison and ordered to pay $219,109 in restitution.

According to plea documents in Caveny’s case, Stein operated Real Estate Solutions, Stevens used Texas Real Estate Services, and Hawkins formed ERealty Mortgage Group, LLC, as foreclosure rescue companies.  The conspirators used third parties to contact homeowners and offer them an opportunity to get out of their present home loans and receive a new home loan with a reduced interest payment and reduced monthly payment.  Caveny and other conspirators falsely represented to homeowners that they had “investors” standing by who were ready to quickly purchase the homeowner’s present loan from the lender holding the current mortgage.  They also falsely represented that they would use investors to purchase the homeowner’s loan from the original lender at a greatly reduced price through a “short sale” process. 

Furthermore, Caveny and other conspirators falsely represented to the homeowners that the homeowners had the legal authority to transfer their homeowner’s deed to the defendants.

As part of the scheme, the conspirators fraudulently required homeowners to start making all future loan payments to them based on fraudulent so-called “loans,” and they also told homeowners to ignore late payment notices sent by lenders.  As part of the scheme, the conspirators conducted a fraudulent “closing” for each homeowner where they caused the homeowner to pay them a large down payment on the new “loan,” and they also had the homeowner sign fraudulent documents, such as a promissory note, deed of trust, special warranty deed, and/or a so-called “land trust.”

Further, according to plea documents, the conspirators falsely represented to homeowners that the conspirators could “sell” their property back to the homeowner with a new loan, when the conspirators well knew they did not legally own the property.  The conspirators also told homeowners to ignore notices of nonpayment from their present lender as they continued to unlawfully collect monthly so called “mortgage payments” from homeowners.  In fact, conspirators instructed several homeowners to file for bankruptcy but to not follow up with the bankruptcy process as an additional means to delay foreclosure and conceal the conspirators’ criminal conduct.  Conspirators concealed that all down payment and monthly mortgage payments fraudulently collected from homeowners was spent for their own personal benefit.

The defendants recruited at least 70 distressed and vulnerable homeowners who were facing the imminent threat of foreclosure on their homes and fraudulently collected a total of at least $242,000 from them. 

This case is one of several felony prosecutions of bankruptcy-related crimes generated by the Bankruptcy Fraud Initiative in the Northern District of Texas.  With the charges in this indictment, 26 defendants have been charged as part of that initiative.  Nineteen have been convicted, one resulted in a mistrial, and six are pending trial.

The Dallas FBI investigated the case.  Assistant U.S. Attorney David Jarvis prosecuted.

# # #

FORT WORTH — Carlos Cortinas, 39, of Arlington, Texas, was sentenced today by U.S. District Judge Reed C. O’Connor to 168 months in federal prison for his role in a methamphetamine distribution conspiracy, announced U.S. Attorney John Parker of the Northern District of Texas.

Cortinas and David Piper, Jr., 52, were convicted following a two-day jury trial in March 2017.  Both defendants were convicted on one count of conspiracy to possess with intent to distribute methamphetamine.  Piper was previously sentenced to 235 months in federal prison. 

Co-conspirator Chadwick Hernandez, 32, pleaded guilty in February 2017 to the same offense and was sentenced to 60 months in federal prison. 

The government presented evidence at trial that beginning in March 2015 until January 20, 2016 Piper and Cortinas possessed with the intent to distribute 500 grams or more of methamphetamine. Evidence elicited at trial showed that methamphetamine distributors from Arlington, including Cortinas, transported multiple pounds of methamphetamine to Piper for re-distribution of methamphetamine in Bolivar, Missouri.  

DEA Fort Worth investigated with the assistance of DEA’s Springfield and Tulsa offices, Arlington Police Department, Fort Worth Police Department, North Richland Hills Police Department, Oklahoma DPS, and Polk County, Missouri Sheriff’s Office.  Assistant U.S. Attorneys Aisha Saleem and Shawn Smith prosecuted.  

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LUBBOCK, Texas —  This morning, Senior U.S. District Judge Sam R. Cummings sentenced Leopoldo Herrera-Gandara, aka “Polo,” 33 of Arch, New Mexico to 121 months in federal prison, following his guilty plea in August 2017 to one count of distribution and possession with intent to distribute 50 grams or more of methamphetamine, announced U.S. Attorney John Parker of the Northern District of Texas. 

Herrera-Gandara and six defendants of a drug trafficking organization (DTO), mostly from the Lubbock, Texas, area, were arrested in May 2017 in a joint operation led by the Texas Department of Public Safety, the Drug Enforcement Administration, the Levelland, Texas Police Department, the Cochran County Sheriff’s Office, Homeland Security Investigations, Immigration and Customs Enforcement, U.S. Customs and Border Protection, as well as the New Mexico State Police Tactical Team, Roosevelt County, New Mexico Sheriff’s Office, and the Region V Metro Drug Task Force, based in New Mexico.

Of the seven defendants who were indicted, five have been convicted and sentenced.  The charges were dismissed against one of the defendants following a plea of guilty to related state charges and the remaining defendant. Arcadio Ornelas, Jr., aka “Junior,” 36, of Morton, Texas, is scheduled to begin trial on December 4, 2017.

 

Johnathan Navarrette Garza, aka “Johnny,” 27, of Morton, Texas, was sentenced to 135 months in federal prison. He pleaded guilty to one count of distribution and possession with intent to distribute methamphetamine.

Jorge Andres Nunez-Saenz, aka “Tucan,” 51, of Levelland, Texas, was sentenced to 97 months in federal prison. He pleaded guilty to one count of distribution and possession with intent to distribute 50 grams or more of methamphetamine.

 

Raul Jose Hernandez, aka “RJ,” 35, of Morton, Texas, was sentenced to 96 months in federal prison. He pleaded guilty to one count of distribution and possession with intent to distribute five grams or more of methamphetamine.

 

Nancy Cecilia Martinez, 37, of Levelland, Texas, was sentenced to 87 months in federal prison. She pleaded guilty to one count of distribution and possession with intent to distribute methamphetamine.

Assistant U.S. Attorney Sean Long is in charge of the prosecution.

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DALLAS — James Edward McIntire, 54, of Dallas, was sentenced today before Chief U.S. District Judge Barbara M.G. Lynn to 27 months in federal prison and ordered to pay $1,997,215 in restitution for bank fraud, announced U.S. Attorney John Parker of the Northern District of Texas.

McIntire pleaded guilty in March 2016 to one count of a bank fraud scheme to defraud Opportunity Bank.  Judge Lynn ordered him to surrender to the Bureau of Prisons on January 2, 2018.

According to documents filed in the case, McIntire founded the business, McIntire and Associates (MA).  To support ongoing operations, MA often needed to obtain loans and/or lines of credit from banks or from some other funding source.  MA would often provide security for the line or line of credit by using MA’s accounts receivable as collateral for the loan.

From approximately March 2008 through September 2009, McIntire ran a scheme to deceive and fraud Opportunity Bank of Richardson, Texas, in order to fraudulently obtain approval of a $2 million line of credit from the bank, using MA’s accounts receivables as security.  When MA initially applied for the line of credit, McIntire falsely represented and fraudulently inflated the total amount of MA accounts receivable submitted to Opportunity Bank in order to mislead and deceive the bank about the collateral’s true value. 

In court filed documents, McIntire admitted that as part of the scheme to defraud, he fraudulently inflated the value of MA’s accounts receivables in order to have access to a higher line of credit than what Opportunity Bank would have approved had he disclosed the true value of MA’s accounts receivables.  In addition to submitting a large number of false and fraudulent weekly and monthly accounts receivable schedules to Opportunity Bank, McIntire also created fictitious packing slips and invoices for MA products that were not actually shipped to the customer, which caused the dollar value of the MA accounts receivable to be falsely inflated. As part of the scheme to defraud, McIntire repeatedly submitted falsely inflated accounts receivable figures to Opportunity Bank over an 18 month period in order to continue to make draws on the line of credit.

McIntire failed to repay the line of credit to Opportunity Bank, causing the bank to suffer a loss of $1,997,215.

The Dallas FBI investigated the case.  Assistant U.S. Attorney David Jarvis prosecuted.

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DALLAS — Victor Manuel Solorzano, 32, of Dallas, was sentenced today before U.S. District Judge Sam A. Lindsay to 567 months in federal prison for the November 19, 2015 armed assault of two federal law enforcement officers in southwest Dallas, announced U.S. Attorney John Parker of the Northern District of Texas.

In April 2017, Solorzano was convicted, following a four-day trial, of one count of possession with intent to distribute methamphetamine, two counts of assault of a federal officer, and two counts of using, carrying, brandishing and discharging a firearm during and in relation to a crime of violence.  Solorzano has been in custody since the time of his arrest in August 2016.

“This shocking example of cold-blooded violence in our neighborhoods and against our law enforcement officers is exactly why we will never stop fighting the fight, said USA Parker.  Those who traffic in drugs bring nothing but misery and death to our communities and they must be stopped.”

 

Co-defendant Edgar Solorzano, 24, pleaded guilty in April 2017 to one count of possession with intent to distribute a controlled substance, two counts of assault on a federal officer and one count of using, carrying, brandishing and discharging a firearm during in relation to a crime of violence. Sentencing is set for November 20, 2017.

According to evidence presented at trial, on November 19, 2015, Victor and Edgar Solorzano, cousins who lived across the street from each other, fired numerous gunshots at two federal officers with the U.S. Department of Homeland Security, Homeland Security Investigations (HSI) with high-powered, semi-automatic firearms, and riddled their pickup truck with bullets as the officers fled for their lives. 

Officers went to install a court-ordered tracking device on Victor Solorzano’s vehicle at his residence on Wilbur Street in Dallas, Texas. Victor was under federal investigation by HSI for trafficking methamphetamine at the time.  Immediately after installing the tracking device on Victor’s vehicle, Victor, armed with a high-powered AR 15 pistol, confronted the officer in the street and began firing at the officer, striking him in the hand and foot.  Edgar, meanwhile, was armed with a high-powered AK 47 pistol.  The officer ran for his life as Victor and Edgar fired at him.  The officer then got inside the passenger’s side of a pickup as Victor and Edgar began firing numerous gunshots at the two federal officers, who did not return fire. Victor and Edgar continued firing at the federal officers as they sped away.  The officer who installed the court-ordered tracking device sustained four non­fatal bullet wounds and the pickup driven by the other officer sustained numerous bullet strikes, all from the back.  Miraculously, the officers were not severely injured or killed.  In total, the Solorzano cousins fired at least 42 gunshots at the federal officers on a residential street, and their turbulent gunfire even struck other vehicles and a home situated on the street. 

After the shooting, Edgar hid the AK 47 pistol he used in the attic of his residence and the AR 15 pistol used by Victor in a neighbor’s backyard.  The police searched Edgar’s residence and found the pistol hidden in the attic.  The police also found in Edgar’s bedroom more than eight grams of methamphetamine, drug-distribution paraphernalia, and a variety of firearms and ammunition. The police later found the pistol used by Victor in the neighbor’s backyard.  The police also searched Victor’s residence and found a gallon-sized ziplock bag containing methamphetamine residue in his closet.  A narcotics detective estimated that the bag had contained approximately one to two pounds of the drug.  The police also found in Victor’s residence drug-cash and a variety of firearms and ammunition.   

The Federal Bureau of Investigation, the Dallas Police Department and U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated.  Deputy Criminal Chief Assistant U.S. Attorney Gary Tromblay and Assistant U.S. Attorneys John Kull and Rachael Jones prosecuted.

 

 

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DALLAS — Stanley James, Jr., 57, of Dallas and Houston, was sentenced today by U.S. District Judge Jane J. Boyle to 60 months in federal prison, following his guilty plea in May 2016 to a drug distribution conspiracy stemming from his operation of several “pill mills” in north Texas, announced U.S. Attorney John Parker of the Northern District of Texas.

James pleaded guilty to one count of conspiracy to distribute a controlled substance (hydrocodone).  He has been in custody since the time of his arrest in October 2015.  

Co-defendant John Christopher Ware, a/k/a “Little Chris,” 45, formerly of Dallas but now residing in Houston, also pleaded guilty to his role in the conspiracy and is scheduled to be sentenced on March 8, 2018.

“These pill mills are a significant driver in the opioid crisis in this country and in north Texas,” said U.S. Attorney Parker.  “They must be shut down and those running them must be held responsible.”

 

According to plea documents in the case, James and co-conspirators distributed more than 2,000,000 hydrocodone pills through medical clinics in Dallas, Texas and elsewhere.  James owned and managed these clinics, and operated them illegitimately, knowing that the prescriptions for these pills had not been issued for a legitimate medical purpose by a medical practitioner acting in the usual course of professional practice.  The hydrocodone quantities encompass the prescriptions issued by the doctors, physician's assistants, nurse practitioners, and nurses who worked at the clinics that James owned, managed, and directed. 

 

A pill mill is a facility that appears to be a medical clinic but in reality distributes large quantities of controlled substances, such as hydrocodone, to the public without regard for medical necessity or therapeutic benefit to the patient.  Despite employment of licensed medical practitioners, a pill mill does not operate as a legitimate medical clinic because the controlled-substance prescriptions that are issued are done so with the knowledge that they are not for a legitimate medical purpose in the usual course of professional practice.

 

According to plea documents in the case, James and Ware owned and operated Great Southwest Medical Clinic on Great Southwest Parkway in Dallas; Arlington Oaks Adult Medical Clinic on Billings Street in Arlington, Texas; and Redbird Family Medical Clinic on Camp Wisdom Road in Dallas.   James and Ware owned and operated these three medical clinics under an umbrella company, J.C. Rapha Medical Management Group, LLC.

 

James operated in the following manner at each of the above-identified clinics: The driver, sometimes also known as a “script ring leader,” or another co-conspirator such as someone associated with the clinic, coached the recruit on what to say inside the clinic to obtain a prescription for hydrocodone.  The driver or script ring leader paid for the recruit’s visit to the clinic, either by giving the recruit money to pay the clinic or by paying the clinic directly. The clinics only accepted cash from patients seeking pain medications, including hydrocodone, and charged approximately $150 per visit for established patients. 

 

James took steps to minimize the possibility of detection by law enforcement at the pill mills, including limiting patients to recruits accompanied by known and trusted drivers. James attempted to maximize profit by providing the prescriptions sought by the script ring leaders, including 10mg hydrocodone. To accomplish this, medical practitioners were hired who were willing to write the sought-after prescriptions even though the prescriptions were not being issued for a legitimate medical purpose in the usual course of professional practice.

 

The Drug Enforcement Administration investigated this case.  Assistant U.S. Attorneys Myria Boehm, Mary Walters and Deputy Criminal Chief Assistant U.S. Attorney Nicholas Bunch prosecuted.

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