Northern District of Texas

DALLAS — Today, U.S. District Judge Sidney A. Fitzwater sentenced three defendants  for their roles 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.

Elvis Johanny Ortiz Reyes, 34, from Nicaragua, was sentenced to 35 months in federal prison and ordered to pay $408,596.46 in restitution, joint and severally with his codefendants.  He pleaded guilty in June 2017 to one count of conspiracy to commit access device fraud.

Yaser Moreno, aka “Adrian Perez,” 27, from Cuba, was sentenced to 57 months in federal prison and ordered to pay $408,596.46 in restitution, joint and severally with his codefendants.  He pleaded guilty in April 2017 to one count of conspiracy to commit access device fraud.  

Norge Mayea, 45, also from Cuba, was sentenced to 36 months in federal prison and ordered to pay $44,497.70 in restitution, joint and severally with his codefendants.  He pleaded guilty in July 2017 to one count of conspiracy to commit access device fraud.

A federal grand jury returned a 20-count indictment in August 2016 charging Reyes, Moreno and Mayea, along with Jesus Aldana Gutierrez, Roberto Carlos Puebla Saavedra, Ivania Ortiz, aka “Ivania Reyes” and “Lisset Oz,” and Yokasta Garcia, aka “Kathy Garcia,” for their roles in the scheme.

According to documents filed in the case, from at least August 2014 through July 2016, the 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.

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DALLAS — Cynthia Stiger, 52, of Dallas, Texas, who was convicted in April 2016 of one count of conspiracy to commit health care fraud, was sentenced yesterday by U.S. District Judge Sam A. Lindsay to 120 months in federal prison and ordered to pay $23,630,777.26 in restitution, joint and several with all codefendants to Medicare and Medicaid, announced U.S. Attorney John Parker of the Northern District of Texas.

Judge Lindsay ordered Stiger to report to the Bureau of Prisons on November 28, 2017.

“This office will continue to use the most sophisticated techniques available to aggressively prosecute those who, through their fraud, drive up the costs of health care to consumers and tax payers alike,” said U.S. Attorney Parker.  “I applaud the tremendous cooperation among the investigative agencies that brought us to this point.”  

 

The following defendants have also been sentenced for their role in the health care fraud scheme:

 

Jacques Roy, 420 months and $268,147,699.15 in restitution

Wilbert James Veasey, Jr., 120 months and $23 million in restitution

Cyprian Akamnonu, 120 months and $25 million in restitution

Patricia Akamnonu, 120 months and $25 million in restitution

Charity Eleda, 48 months and $397,294.51 in restitution

Teri Sivils, 3 years probation and $885,714.05 in restitution 

 

The government presented evidence at trial that Dr. Roy, Stiger, Veasey and Eleda engaged in a large-scale, sophisticated health care fraud scheme in which they conspired together and with others to defraud Medicare and Medicaid through companies they owned/controlled:  Medistat Group Associates, P.A., Apple of Your Eye Health Care Services, Inc., Ultimate Care Home Health Services and Charry Home Care Services.

 

As part of the conspiracy, Stiger, Veasey and Eleda, along with others, improperly recruited individuals with Medicare coverage to sign up for Medicare home health care services.  Eleda recruited patients from The Bridge homeless shelter in Dallas, sometimes paying recruiters $50 per beneficiary they found and directed to her vehicle parked outside the shelter’s gates.  Eleda and other nurses would falsify medical documents to make it appear as though those beneficiaries qualified for home health care services that were not medically necessary.  Eleda and the nurses prepared Plans of Care (POC), also known as 485’s, which were not medically necessary, and these POCs were delivered to Dr. Roy’s office and not properly reviewed by any physician. 

 

Dr. Roy instructed his staff to certify these POCs, which indicated to Medicare and Medicaid that a doctor, typically Dr. Roy, had reviewed the treatment plan and deemed it medically necessary.  That certifying doctor, typically Dr. Roy, certified that the patient required home health services, which were only permitted to be provided to those individuals who were homebound and required, among other things, skilled nursing.  This process was repeated for thousands of POCs, and, in fact, Medistat’s office included a “485 Department,” essentially a “boiler room” to affix fraudulent signatures and certifications.

 

Once an individual was certified for home health care services, Eleda, nurses who worked for Stiger and Veasey, and other nurses falsified visit notes to make it appear as though skilled nursing services were being provided and continued to be necessary.  Dr. Roy would also visit the patients, perform unnecessary home visits, and then order unnecessary medical services for the recruited beneficiaries.  Then, at Dr. Roy’s instruction, Medistat employees would submit fraudulent claims to Medicare for the certification and recertification of unnecessary home health care services and other unnecessary medical services.

 

The government presented further evidence at trial that the scope of Dr. Roy’s fraud was massive; Medistat processed and approved POCs for 11,000 unique Medicare beneficiaries from more than 500 different home health agencies.  Dr. Roy entered into formal and informal fraudulent arrangements with Apple, Charry, Ultimate and other home health agencies to ensure his fraudulent business model worked and that he maintained a steady stream of Medicare beneficiaries. 

 

The case was investigated by the Federal Bureau of Investigation, the U.S. Department of Health and Human Services (HHS) Office of Inspector General (OIG), and the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU) and was brought as part of the Medicare Fraud Strike Force supervised by the Criminal Division Fraud Section and the U.S. Attorney’s Office for the Northern District of Texas.

 

Assistant U.S. Attorneys P.J. Meitl and Nicole Dana and First Assistant U.S. Attorney Chad Meacham prosecuted the case.

 

                                                          

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WASHINGTON — A Dallas, Texas, grand jury returned two indictments today against five Chinese citizens and four companies alleging fraud and other charges, the Justice Department announced. The charges relate to alleged sales of stimulants intended for inclusion in dietary supplements.

The indictments charge the defendants with participation in a scheme to produce and sell dietary supplements containing hidden synthetic stimulants, such as 2-amino-6-methylheptane (“DMHA”). The charges also involve alleged shipments of 1,3-dimethylamylamine (“DMAA”) and DMHA. DMAA, which is chemically similar to DMHA, has been linked to severe adverse events such as heart attacks and strokes.

The indictments allege that the defendants knew major American dietary supplement retailers would not carry supplements containing these stimulant ingredients. The indictments also allege the defendants agreed with a confidential government informant to either mislabel ingredients or otherwise help to hide the true nature of a proposed dietary supplement from retailers. None of the ingredients allegedly shipped during the undercover investigation were sold to consumers. 

“It is unlawful for companies both outside and inside the United States to conceal questionable, dangerous, or illegal ingredients in dietary supplements sold to American consumers,” said Chad A. Readler, Acting Assistant Attorney General of the Department of Justice’s Civil Division. “These cases demonstrate the Department of Justice’s commitment to ensuring that dietary supplements are safe and accurately labeled.”

“U.S. consumers trust that their dietary supplements are safe and contain appropriate labeling. When unscrupulous producers add undeclared or misidentified ingredients to dietary supplements, there is no assurance that the product is safe for consumption,” said Catherine A. Hermsen, Acting Director, FDA Office of Criminal Investigations. “The FDA will continue to pursue and bring to justice those who participate in fraudulently marketing dietary supplements to the detriment of public health.”

The first indictment charges Genabolix USA Inc., a Nevada corporation; Shanghai Yongyi Bioltechnology Ltd., a Chinese corporation; Hu Chang Chun (a.k.a. James Hu), 44, of Shanghai, China, the principal of Genabolix; Gao Mei Fang (a.k.a. Amy Gao), 41, of Shanghai, China, the supply chain manager for Genabolix; and Zhang Xiao Dong (a.k.a. Mark Zhang), 31, of Shanghai, China, the sales manager for Genabolix, with mail fraud. The indictment also charges Genabolix, Shanghai Yongyi, Hu, and Gao with introducing misbranded food into interstate commerce. In addition, the indictment charges Genabolix, Yongyi, and Gao with obstruction of an agency proceeding and smuggling. 

A second indictment charges Shanghai Waseta International Trade Co. Ltd., a Chinese corporation; Max Pharmatech Inc., a California corporation; Xu Jia Bao (a.k.a. Fred Xu), 48, of Shanghai, China, the principal of Shanghai Waseta; and Li Ting Ting (a.k.a. Sunny Lee), 37, of Shanghai, China, the overseas sales manager for Shanghai Waseta, with wire fraud and with introducing misbranded food into interstate commerce. The indictment also charges Shanghai Waseta with smuggling.

Gao Mei Fang, Zhang Xiao Dong, and Xu Jia Bao were arrested in late September at a dietary supplement trade show in Las Vegas and remain in custody. A date for trial before the federal district court in Dallas has not yet been set. The remaining individual defendants are not believed to be in the United States.

“Few things are more important than ensuring the safety of what we put into our bodies,” said U.S. Attorney John Parker for the Northern District of Texas.  “Those who deliberately mislead us on this critical issue will be prosecuted to the fullest extent of our laws.”

An indictment is an accusation by a federal grand jury and is not evidence of guilt. The defendants should be presumed innocent unless and until proven guilty.

Upon conviction, the maximum statutory penalties for the individual defendants are 20 years’ imprisonment and a $250,000 fine for mail fraud or wire fraud; one year imprisonment and a $100,000 fine for the introduction of misbranded food into interstate commerce; three years’ imprisonment and a $250,000 fine for the introduction of misbranded food into interstate commerce with the intent to defraud or mislead; five years’ imprisonment and a $250,000 fine for obstruction of an agency proceeding; and 20 years’ imprisonment and a $250,000 fine for smuggling.

The FDA Office of Criminal Investigations-Dallas Division investigated the case. The case is being prosecuted by Assistant U.S. Attorneys Kathryn Rumsey and Errin Martin of the Northern District of Texas and Trial Attorneys David Sullivan and Patrick Runkle of the Justice Department’s Consumer Protection Branch.

Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Northern District of Texas, visit its website at https://www.justice.gov/usao-ndtx.

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A Dallas, Texas, grand jury returned two indictments today against five Chinese citizens and four companies alleging fraud and other charges, the Justice Department announced. The charges relate to alleged sales of stimulants intended for inclusion in dietary supplements.

 

The indictments charge the defendants with participation in a scheme to produce and sell dietary supplements containing hidden synthetic stimulants, such as 2-amino-6-methylheptane (“DMHA”). The charges also involve alleged shipments of 1,3-dimethylamylamine (“DMAA”) and DMHA. DMAA, which is chemically similar to DMHA, has been linked to severe adverse events such as heart attacks and strokes.

 

The indictments allege that the defendants knew major American dietary supplement retailers would not carry supplements containing these stimulant ingredients. The indictments also allege the defendants agreed with a confidential government informant to either mislabel ingredients or otherwise help to hide the true nature of a proposed dietary supplement from retailers. None of the ingredients allegedly shipped during the undercover investigation were sold to consumers. 

 

“It is unlawful for companies both outside and inside the United States to conceal questionable, dangerous, or illegal ingredients in dietary supplements sold to American consumers,” said Chad A. Readler, Acting Assistant Attorney General of the Department of Justice’s Civil Division. “These cases demonstrate the Department of Justice’s commitment to ensuring that dietary supplements are safe and accurately labeled.”

 

“U.S. consumers trust that their dietary supplements are safe and contain appropriate labeling. When unscrupulous producers add undeclared or misidentified ingredients to dietary supplements, there is no assurance that the product is safe for consumption,” said Catherine A. Hermsen, Acting Director, FDA Office of Criminal Investigations. “The FDA will continue to pursue and bring to justice those who participate in fraudulently marketing dietary supplements to the detriment of public health.”

 

 

The first indictment charges Genabolix USA Inc., a Nevada corporation; Shanghai Yongyi Bioltechnology Ltd., a Chinese corporation; Hu Chang Chun (a.k.a. James Hu), 44, of Shanghai, China, the principal of Genabolix; Gao Mei Fang (a.k.a. Amy Gao), 41, of Shanghai, China, the supply chain manager for Genabolix; and Zhang Xiao Dong (a.k.a. Mark Zhang), 31, of Shanghai, China, the sales manager for Genabolix, with mail fraud. The indictment also charges Genabolix, Shanghai Yongyi, Hu, and Gao with introducing misbranded food into interstate commerce. In addition, the indictment charges Genabolix, Yongyi, and Gao with obstruction of an agency proceeding and smuggling. 

 

A second indictment charges Shanghai Waseta International Trade Co. Ltd., a Chinese corporation; Max Pharmatech Inc., a California corporation; Xu Jia Bao (a.k.a. Fred Xu), 48, of Shanghai, China, the principal of Shanghai Waseta; and Li Ting Ting (a.k.a. Sunny Lee), 37, of Shanghai, China, the overseas sales manager for Shanghai Waseta, with wire fraud and with introducing misbranded food into interstate commerce. The indictment also charges Shanghai Waseta with smuggling.

 

Gao Mei Fang, Zhang Xiao Dong, and Xu Jia Bao were arrested in late September at a dietary supplement trade show in Las Vegas and remain in custody. A date for trial before the federal district court in Dallas has not yet been set. The remaining individual defendants are not believed to be in the United States.

 

“Few things are more important than ensuring the safety of what we put into our bodies,” said U.S. Attorney John Parker for the Northern District of Texas.  “Those who deliberately mislead us on this critical issue will be prosecuted to the fullest extent of our laws.”

 

An indictment is an accusation by a federal grand jury and is not evidence of guilt. The defendants should be presumed innocent unless and until proven guilty.

 

Upon conviction, the maximum statutory penalties for the individual defendants are 20 years’ imprisonment and a $250,000 fine for mail fraud or wire fraud; one year imprisonment and a $100,000 fine for the introduction of misbranded food into interstate commerce; three years’ imprisonment and a $250,000 fine for the introduction of misbranded food into interstate commerce with the intent to defraud or mislead; five years’ imprisonment and a $250,000 fine for obstruction of an agency proceeding; and 20 years’ imprisonment and a $250,000 fine for smuggling.

 

The FDA Office of Criminal Investigations-Dallas Division investigated the case. The case is being prosecuted by Assistant U.S. Attorneys Kathryn Rumsey and Errin Martin of the Northern District of Texas and Trial Attorneys David Sullivan and Patrick Runkle of the Justice Department’s Consumer Protection Branch.

 

Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Northern District of Texas, visit its website at https://www.justice.gov/usao-ndtx.

DALLAS – This Saturday, October 28, from 10 a.m. to 2 p.m. the federal Drug Enforcement Administration and its local law enforcement, community and tribal partners will give the public its 14th opportunity in seven years to prevent pill abuse and theft by ridding their homes of potentially dangerous expired, unused, and unwanted prescription drugs.

 

“Making progress on the opioid crisis does not take a herculean effort on any one person’s part,” said U.S. Attorney Parker.  “It takes each of us to do whatever we can, no matter how small it may see.  This includes cleaning out unused prescriptions before they become part of the problem.”

 

Last April Americans turned in 450 tons (900,000 pounds) of prescription drugs at almost 5,500 sites operated by the DEA and more than 4,200 of its state and local law enforcement partners. Overall, in its 13 previous Take Back events, DEA and its partners have taken in over 8.1 million pounds—more than 4,050 tons—of pills. The disposal service is free and anonymous, no questions asked. (The DEA cannot accept liquids, needles, or sharps, only pills or patches.)

 

Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. According to the Centers for Disease Control and Prevention, 91 Americans die each day from an opioid overdose. Some painkiller abusers move on to heroin: Four out of five new heroin users started with painkillers.

 

Flushing medications down the toilet or throwing them in the trash pose potential safety and health hazards. This initiative addresses the public safety and public health issues that surround medications languishing in home cabinets, becoming highly susceptible to diversion, misuse, and abuse.

 

For more information or to locate a collection site near you, go the DEA Prescription Drug Take Back Day web site at https://takebackday.dea.gov/#collection-locator where you can search by zip code, city, or state.

 

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WASHINGTON – Attorney General Jeff Sessions recognized 202 department employees for their distinguished public service today at the 65nd Annual Attorney General’s Awards Ceremony.  Nineteen other individuals outside of the department were also honored for their work.  This annual ceremony recognizes individuals for their outstanding service and dedication to carrying out the missions of the Department of Justice.  The department will also present one posthumous award to Deputy Commander Patrick T. Carothers for exceptional heroism in the line of duty during a fugitive apprehension in Allenhurst, Georgia on Nov. 18, 2016, in which  Deputy Commander Carothers was mortally wounded.

            

“Every single day, the 115,000 men and women of the Department of Justice work to protect our national security against terrorist threats, defend the civil rights of all Americans, reduce violent crime in our communities, stop deadly drug dealers and their organizations, and strengthen the rule of law,” said Attorney General Sessions.  “This work benefits every American, and each Department of Justice employee plays a role that helps us accomplish our objectives. Today, we take a moment to recognize those who have distinguished themselves by exemplary service to the Department. Each one of these men and women—through their dedication and commitment—has made a difference. Meeting with them and their families today, I am more confident than ever that the Department—and the safety of the American people—are in good hands.”

 

“I’m delighted that the Attorney General chose to recognize the work of one of our outstanding prosecutors,” said U.S. Attorney Parker.  “Mr. Meitl’s work in this case was nothing short of extraordinary and exemplifies the work that goes on in this office every day.”

 

This year’s program honors individuals across the department and our federal, state, local, and tribal partners for their self-less efforts, protecting our national security and our civil rights, addressing rising violent crime in our communities, going after gangs and those trafficking in dangerous narcotics and human beings.  The awards also honor the work of civil and environmental litigation, which enforces the rule of law and upholds our Constitution.  They also recognize employees whose ideas and efforts save taxpayer dollars and help our government operate more effectively and efficiently, among other contributions to public safety and good governance.

 

Attorney General Sessions recognized Northern District of Texas Assistant U.S. Attorney P.J. Meitl for the prosecution of one the largest cases ever against the Aryan Brotherhood of Texas (ABT), which is considered a Tier One gang in the State of Texas.  Mr. Meitl’s leadership in the ABT investigation was instrumental in the highly successful prosecution of dozens of members and associates of various white supremacy groups in North Texas. To date, 89 dangerous defendants are incarcerated for their involvement in a far-reaching drug trafficking conspiracy.  Combined, the defendants had previously been convicted of 730 crimes that included murder, sexual assault, robbery, and other violent offenses. 

 

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DALLAS — Victor Leos, 63, of Garland, Texas, was sentenced yesterday before U.S. District Judge David C. Godbey to 24 months in federal prison and ordered to pay $317,482 in restitution for falsifying immigration documents, announced U.S. Attorney John Parker of the Northern District of Texas. 

Leos pleaded guilty in May 2017 to one count of conspiracy to commit false statements in connection with immigration documents.  Leos was ordered to surrender to the Bureau of Prisons on January 28, 2018.

 

“This school district human resources executive perpetrated a fraud on numerous overseas teachers, his school district and the U.S. government,” said Katrina W. Berger, special agent in charge of HSI Dallas.  “He upended all these lives and perpetrated this fraud for the most selfish of reasons — personal profit.  HSI will continue working with our law enforcement partners to identify and disrupt immigration benefit fraud and bring to justice those involved in these illegal schemes.”

 

“Today’s action shows that this former school official not only knowingly and willfully abused his position of trust for personal gain, but did so at the expense of the educational development of children. That is unacceptable,” said Neil Sanchez, Special Agent in Charge of the U.S. Department of Education Office of Inspector General’s Southern Regional Office.  “Deservedly, Mr. Leos will be held accountable for cheating Garland students and taxpayers.”

 

According to plea documents, Leos was employed by Garland Independent School District (GISD), located in Garland, Texas from 1998 to 2013.  Leos was responsible for recruiting teachers from Mexico, Central and South America, and the Philippines to fill open teaching positions at GISD.  From around 2007 to around 2012, Leos engaged in a criminal conspiracy with outside recruiters to recruit and hire foreign teachers that GISD did not necessarily need.  Leos benefitted by receiving kickbacks in the form of inflated fees to teach orientation classes, travel, and other forms of remuneration.  After the foreign teachers were employed at GISD on H-1B temporary visas, Leos knew they were unlikely to qualify for Form 9089s (Applications for Permanent Employment Certification).  To further the conspiracy, Leos knowingly signed and filed falsified Form 9089s with the Department of Labor (DOL) to sponsor the teachers for employment-based permanent resident applications. 

 

Leos admitted that from August 27, 2012 to December 6, 2012, he signed and filed thirty-eight Form 9089s for GISD in which he knowingly made false statements.  In each Form 9089, Leos certified that all U.S. workers who applied for the job opening were rejected for lawful job­related reasons when Leos knew this was not the case.  To support these false statements, Leos created recruitment reports which contained additional false statements regarding the number of U.S. applicants for the open positions and the reasons for the rejection of the U.S. applicants.  Leos had these recruitment reports submitted to DOL to support the falsified Form 9089s that were also submitted.

 

This was a joint investigation involving U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Department of Labor-Office of the Inspector General, the Department of Education-Office of the Inspector General, and the Federal Bureau of Investigation.  Assistant U.S. Attorney Russell Fusco was in charge of the prosecution, which was assisted by Assistant U.S. Attorney John Kull.

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FORT WORTH, Texas — Jeremy Michael Matthews, 27, of Azle, Texas, was sentenced today by U.S. District Judge Terry R. Means to 210 months in federal prison, following his guilty plea in May 2017 to one count of distribution of a visual depiction of a minor engaged in sexually explicit conduct, announced U.S. Attorney John Parker of the Northern District of Texas.

Matthews has been in custody since the date of his arrest in March 2017.

According to documents filed in the case, starting in early 2014, Matthews began receiving and sending images of child pornography through the Kik instant messaging application. On March 24, 2016 law enforcement executed a search warrant at Matthews’ residence and he admitted that he possessed child pornography on his cell phone. A review of Matthews’ cell phone revealed approximately 650 images of child pornography.  Matthews’ computer contained approximately 982 images of child pornography.

 

The cases were 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 Texas Rangers investigated the case.  Assistant U.S. Attorney Megan Fahey was in charge of the prosecution.

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AMARILLO, Texas — Today, Russell Tim Shen, 69, Andre Jorge Hernandez, 39, and Ernesto Esteve, 50, all from Miami, Florida, appeared before U.S. District Judge Sidney A. Fitzwater and were sentenced for their roles in a marihuana distribution conspiracy, announced U.S. Attorney John Parker of the Northern District of Texas.

 

Shen, Hernandez, and Esteve were sentenced to 21 months’ custody, 15 months’ custody, and 3 years’ probation, respectively. 

 

According to plea documents filed in the case, in December 2013, Esteve traveled from Florida to Colorado with Hernandez and purchased thousands of dollars’ worth of supplies and equipment used to grow and cultivate marihuana plants.  In February 2014, Esteve’s credit card was used to purchase additional materials used for the growth and cultivation of marihuana plants.

 

On March 14, 2014, Esteve paid for one-way flights from Miami, Florida, to Denver, Colorado, for Hernandez and Shen, who was an officer with the U.S. Customs and Border Protection stationed in Miami, Florida.  Shen and Hernandez rented a car in Denver, Colorado, which was due in Miami, Florida, on March 17, 2014.

 

On March 15, 2014, a Childress, Texas police officer pulled over a vehicle, driven by Shen, for following too closely.  During the stop, Shen identified himself to the police officer as a federal law enforcement officer.  The passenger in the vehicle was identified as Hernandez.  Based on suspicious behavior, the Childress police officer asked for consent to search the vehicle.  Shen refused to provide consent.  So the police officer deployed his canine, who was already on the scene, to conduct a free-air sniff of the car.  The police officer then informed Shen and Hernandez that he was going to search the car based on the canine’s alert.  During the search, police found approximately 71 gross pounds of suspected marihuana in the trunk of the vehicle.

 

During an interview with law enforcement, Esteve made misleading statements to the agents about Shen’s and Hernandez’s conspiracy to distribute marihuana in an attempt to conceal the crime.

 

The Federal Bureau of Investigation; Department of Homeland Security, Office of Inspector General; Childress Police Department; Amarillo Police Department; Douglas County, Colorado Sheriff’s Office; and Castle Rock, Colorado Police Department conducted the investigation.  Assistant U.S. Attorney Sean Taylor prosecuted.

 

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AMARILLO, Texas — Kelly Neil Black, 24, of Fritch, Texas, appeared today in federal court before U.S. District Judge Sidney A. Fitzwater and was sentenced to 240 months in federal prison and 15 years supervised release on one count of transportation of child pornography, announced John Parker, U.S. Attorney for the Northern District of Texas.

Black has been in custody since the time of indictment in March 2017.

According to documents filed in the case, on September 22, 2016, a search warrant was executed at Black’s residence in Fritch, Texas.  Law enforcement located several items that contained child pornography.  A forensic examination later revealed that the items seized by law enforcement contained approximately 2,300 images that had been previously identified as known images containing child pornography.

 

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, Texas Rangers, Hutchinson County Sheriff’s Office and the Potter County Attorney’s Office investigated the case.  Assistant U.S. Attorney Joshua Frausto prosecuted.

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DALLAS – An indictment returned by a federal grand jury in Dallas this month, and unsealed last week, charges Tim Jones, 46, of Dallas, Texas, with offenses related to a scheme to illegally solicit payments from probationers, announced John Parker, U.S. Attorney for the Northern District of Texas.

Specifically, Jones is charged with eight counts of use of interstate facility to commit travel act violation. Jones will remain on bond pending trial which is set for December 18, 2017.

 

The indictment alleges that from January 2015 through October 2015 Jones was employed by the Dallas County Community Supervision and Corrections Department as a court probation officer. Jones was responsible for defendants who have been referred from field probation offices to the court level. Court probation officers are expressly prohibited from accepting payment from probationers for probation fees and other sums owed.  

 

The indictment alleges, during Jones’ employment as a court probation officer he concocted and executed a scheme whereby he solicited and received cash and money orders from probationers in exchange for granting permission to travel, granting early release from probation, withholding arrest warrants, dispensing of community service hours, waiving probation requirements, and reducing the balance of probation fees.

 

An indictment is merely an allegation and defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.  If convicted, however, Jones faces not more than 5 years in federal prison and a $250,000 fine.    

 

The case is being investigated by the Federal Bureau of Investigation.

 

Assistant U.S. Attorney Andrew Wirmani is prosecuting the case.

 

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LUBBOCK, Texas — A 22-year-old Brownwood, Texas, man, Sebastian Contreras, who pleaded guilty in July 2017 to two counts of receipt of child pornography, was sentenced last week by Senior U.S. District Judge Sam R. Cummings to 168 months in federal prison, announced U.S. Attorney John Parker of the Northern District of Texas.  Contreras will begin serving his prison sentence on December 1, 2017.

According to documents filed in the case, in December 2016 and February 2017, Contreras used the Internet to download images of child pornography depicting female minors under the age of 18 years engaged in sexually explicit conduct. 

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 U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Federal Bureau of Investigation, the Brown County Sheriff’s Office, and the Brownwood Police Department investigated the case.  Assistant U.S. Attorney Steven M. Sucsy prosecuted.

 

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DALLAS — Marquist Fulcher, aka “Keezie,” 28, of Fort Worth, Texas, pleaded guilty yesterday before U.S. Magistrate Judge Renee Harris Toliver, to one count of conspiracy to commit child sex trafficking, announced U.S. Attorney John Parker of the Northern District of Texas.

Fulcher faces a maximum penalty of up to life in prison and a $250,000 fine.  Fulcher will remain in custody pending sentencing which is set for January 31, 2018.

In May 2017 a federal grand jury in Dallas returned an indictment charging Fulcher along with Chapoleon Fischer, aka “Kidd,” 28, Shatara Armstrong, 31, Marcus Speed, 26, and Tiffany Gideon, 22 with conspiracy to engage in child sex trafficking.

According to plea documents filed in Fulcher’s case, in early 2015, Fulcher began acting as a pimp over Gideon, and eventually several other young girls and women.  Specifically, between 2015 and October l, 2016, he facilitated the commercial sex acts of thirteen-year-­old Jane Doe 1, seventeen-year-old Jane Doe 2 and seventeen-year-old Jane Doe 4, among others.  In late 2015, Armstrong began assisting Fulcher in his prostitution enterprise.  Fulcher and Armstrong rented rooms at various hotels for Jane Doe 1, Jane Doe 2 and Jane Doe 4, and others, to use to engage in commercial sex acts.  Both Fulcher and Armstrong knew these girls were underage because they told them. Fulcher and Armstrong also created and posted advertisements on the commercial sex website Backpage.com for the girls and women, who in turn gave the proceeds from their commercial sex acts to Fulcher.

 

Fulcher also worked with other pimps, including Speed and Fischer, as part of a sex trafficking enterprise. The organization recruited victims in various ways, including finding them on the internet. Members of the group would trade girls amongst themselves as well.  The pimps in this organization, including Fulcher, used violence and threats of violence as a means to control the victims.

 

The Fort Worth Police Department and U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), both members of the North Texas Trafficking Taskforce, investigated the case.  Assistant U.S. Attorneys Cara Foos Pierce, Myria Boehm and P.J. Meitl are prosecuting.

# # #

DALLAS — Nicholas Kyle Driggers, 31, of Forney, Texas, was sentenced today by U.S. District Judge Sam A. Lindsay to a 151 months in federal prison following his guilty plea in June 2017 to one count of possession of a controlled substance with intent to distribute, announced U.S. Attorney John Parker of the Northern District of Texas.

 

Driggers has been in custody since the time of his arrest in March 2017.

 

According to documents filed in the case, on March 2, 2017, Addison Police Department performed a computer check of a vehicle and discovered that the registered owner, Driggers, had an active warrant for a parole violation.  After arresting Driggers officers examined the vehicle and observed a strong and distinct odor of marijuana coming from inside of the vehicle.  In plain view, the officer observed a partially smoked marijuana cigarette and other drug paraphernalia.  A search of the vehicle revealed two bags containing over 450 grams of methamphetamine, two handguns, Xanax pills, marijuana, drug paraphernalia and $2,229.00 in cash.

 

The Texas Department of Public Safety, Addison, Texas Police Department, and the Carrolton Police Department investigated the case.  Assistant U.S. Attorney George Leal prosecuted.

 

# # #

FORT WORTH, Texas — Eight men are in federal custody on sex trafficking of children charges outlined in a federal criminal complaint filed last week, announced U.S. Attorney John Parker of the Northern District of Texas. 

The following individuals were charged and have made their initial appearances before U.S. Magistrate Judge Jeffrey L. Cureton.  They have been remanded to custody pending additional court hearings.

            Pierre Lagrone, aka “P” or “Pedro,” 33                     

            Robert Roseberry, aka “King Rose,” 29               

            Herman Sanders, aka “Pooh,” 29                                                  

            Reginald Smith, aka “Green Light,” 28                                  

            Demarcus Davis, aka “Zigg,” 25                                                   

            Kentrell Davis, aka “Zeal,” 24                                                   

            Cederrick Clarkson, aka “Ced” or “Spazz,” 25                                

            Terroderick Watts, aka “Silk,” 27               

  

According to the affidavit filed with the criminal complaint, 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, Jane Doe 1, that advertised commercial sex acts.  As a result of the operation, Jane Doe 1 was recovered.  Additionally, two other minor females, Jane Doe 2 and Jane Doe 3, were also located in a closet located in Jane Doe 1’s hotel room at the time she was recovered.

 

The three females, and others, were victims of a child sex trafficking organization.  Lagrone, Roseberry, Sanders, Smith, D. Davis, K. Davis, Clarkson and Watts were members of that organization and recruited, advertised and sold several women, both adults and underage for the purpose of commercial sex.  They frequently worked together as an organization by utilizing some of the same underage and adult female victims to engage in commercial sex acts, operating out of the same hotels while engaging in a commercial sex enterprise, transporting female victims for the purpose of commercial sex acts, utilizing and sharing cellphones that were used to post ads for commercial sex on Backpage.com, taking photographs of female victims either nude or in their underwear that were used in Backpage.com ads for commercial sex and obtaining hotel rooms that were used to engage in commercial sex activities.   The defendants were also frequently violent if the females angered them or did not follow their directions.

 

A complaint is a written statement of the essential facts of the offense charged and must be made under oath before a magistrate judge.  A defendant is entitled to the presumption of innocence until proven guilty.  The government has 30 days to present the matter to a grand jury for indictment.  The maximum statutory penalty for the offense as charged is life in federal prison and a $250,000 fine.

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.                     

# # #

DALLAS — Andrew Joseph Baumiller, 38, of Dallas, Texas, pleaded guilty today before U.S. Magistrate Judge David L. Horan to one count of conspiracy to commit health care fraud stemming from a scheme to defraud TRICARE, the health insurance program for members of the military and their families. The announcement was made today by U.S. Attorney John Parker of the Northern District of Texas.

Baumiller faces a maximum statutory penalty of 10 years in federal prison, a $250,000 fine, and will be ordered to pay restitution. Baumiller will remain in custody pending sentencing, which is scheduled before Chief U.S. District Judge Barbara M.G. Lynn in February, 2018.

According to documents filed in the case, Baumiller admitted to conspiring with Richard Robert Cesario, John Paul Cooper, Dr. Walter Neil Simmons, Dr. William F. Elder-Quintana, Joe Larry Straw, Luis Rafael Rios, Michael John Kiselak, and others to defraud TRICARE out of more than $50 million from May 2014 through February 18, 2016, through a scheme involving compounded pain creams, scar creams, and vitamin supplements. Baumiller is the first defendant to plead guilty in this case. Cesario, Cooper, Simmons, Quintana, Straw, Rios, Kiselak, and four other defendants are scheduled for trial next year.

According to the superseding indictment filed October 4, 2016, Cesario and Cooper orchestrated a scheme through their marketing company, CCMGRX, LLC, to generate prescriptions by paying illegal kickbacks to TRICARE beneficiaries and prescribing doctors, and to receive illegal kickbacks in exchange for those prescriptions from four Texas-based compounding pharmacies: Trilogy Pharmacy (Trilogy) in Dallas, 360 Pharmacy Services in Webster, Dandy Drug in Burleson, and Alpha Pharmacy in Irving.

The superseding indictment alleges that the scheme caused TRICARE to suffer an actual loss of more than $100 million. In connection with his guilty plea, Baumiller, who served as the President of Trilogy and oversaw its day-to-day operations, admitted that TRICARE paid Trilogy more than $50 million that was tainted by the payment of illegal kickbacks.

The superseding indictment alleges that Cesario, Cooper, Straw, Rios, Kiselak and others disguised the illegal kickbacks they paid to TRICARE beneficiaries as “grants” for participating in a medical study they referred to as a TRICARE-approved “Patient Safety Initiative” or “PSI Study” designed to evaluate the safety and efficacy of compounded drugs. In reality, the PSI Study was not approved by TRICARE, was not overseen by a qualified physician or medical professional, had no control group, and was not designed to gather any useful scientific data relating to the safety and efficacy of any drug. In connection with his guilty plea, Baumiller admitted that he knew about the sham study but “pretended not to know the truth because CCMGRX was generating so much business and they were all making a lot of money.”

Baumiller further admitted that Trilogy paid Cesario, Cooper, Straw, Rios, Kiselak, and other CCMGRX marketing reps as W-2 employees of Trilogy “in order to give a false appearance of compliance with the statutory and regulatory bona fide employee safe harbor provisions of the Anti-Kickback Statute in order to defraud TRICARE and other federal health care programs.”

At times, according to the factual resume, Trilogy received prescriptions for patients who lived in states where Trilogy was not licensed to do business. Rather than refuse to fill these prescriptions, Baumiller and others shipped the prescriptions to a local courier, marketing rep, or relative, who in turn shipped the prescriptions to the patient. This enabled Trilogy to increase the number of claims it could submit to TRICARE and other federal health care programs.

The Federal Bureau of Investigation and Defense Criminal Investigative Service investigated the case. Assistant U.S. Attorneys Douglas Brasher and Paul Yanowitch are prosecuting.

# # #

FORT WORTH, Texas — Fernando Cabrera, 21, Nygul Anderson, 19, and Albert Gonzalez, 18, all of Monterrey, Mexico, were arrested yesterday on a federal criminal complaint stemming from the kidnapping and extortion of two men, announced U.S. Attorney John Parker of the Northern District of Texas.

 

Cabrera, Anderson and Gonzalez were each charged with one count each of conspiracy to possess extortion proceeds.  They are scheduled to make their initial appearance today before U.S. Magistrate Judge Jeffrey L. Cureton.

 

According to the affidavit filed with the complaint, on September 22, 2017, an individual began receiving threatening calls from an unrecognizable Mexican telephone number.  The caller stated he kidnapped the individual’s two brothers in Rioverde, San Luis Potosi, Mexico and demanded $300,000 or they would be killed.  The next day the ransom demand was lowered to $40,000 and then again to $20,000.  Instructions were given to deliver the money, once the money was delivered the caller disclosed the location of the brothers and they were found tied up in a motel room in Rioverde, San Luis Potosi, Mexico.

              

On September 29, 2017, the same individual received another call from the same Mexican telephone number demanding an additional $100,000 or else they would kidnap the brothers again and kill them.  The deadline for the second ransom drop was Friday, October 13, 2017.  On October 13, 2017, the caller agreed to a location at a Home Depot in Fort Worth for the money drop.  At approximately 4:30 p.m., a controlled money drop was made at the agreed upon meeting location.  A Hispanic male, exited a red Chevrolet Camaro and attempted to retrieve the package after it was dropped.  Three individuals in the red Chevrolet Camaro were then arrested by FBI SWAT Team members.

 

A complaint is a written statement of the essential facts of the offense charged and must be made under oath before a magistrate judge.  A defendant is entitled to the presumption of innocence until proven guilty.  The government has 30 days to present the matter to a grand jury for indictment.  The maximum statutory penalty for the offense as charged is up to 5 years in federal prison and a $250,000 fine.

The Federal Bureau of Investigation is investigating.  Assistant U.S. Attorney P.J. Meitl is in charge of the prosecution.

 

# # #

DALLAS — Jose Apolinar Arreola Avalos, aka “J. Apolinar Arreola Avalos, 43, a citizen of Mexico and in the United States illegally, was sentenced today before U.S. District Judge David C. Godbey for his role in a methamphetamine distribution conspiracy, announced U.S. Attorney John Parker of the Northern District of Texas.

 

Avalos was sentenced to 324 months in federal prison following his guilty plea in June 2017 to one count of conspiracy to possess with intent to distribute and to distribute a schedule II controlled substance.  He was in the United States illegally at the time of the offense and will be deported after serving his sentence.  Avalos has been in custody since his arrest in March 2016.

 

Avalos was charged along with twenty-one others with various offenses related to a methamphetamine distribution conspiracy.  Of the twenty-one charged, eighteen have pleaded guilty, five have been sentenced and three are awaiting trial.

 

According to documents filed in the case, between September 25, 2015 through March 18, 2016, Avalos and his coconspirators conspired to distribute methamphetamine and on several occasions discussed the preparation and conversion of liquid methamphetamine into crystal methamphetamine. 

 

On March 18, 2016, law enforcement executed a search warrant at Avalos’ residence, which was used to store, prepare and distribute methamphetamine.  The methamphetamine seized by law enforcement converted to approximately 63 kilograms of ice methamphetamine.  Law enforcement also seized firearms, and several thousand dollars in United States Currency.  As part of the plea agreement Avalos agreed to forfeit the items seized, including two firearms and approximately $295,000.00.

 

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

 

# # #

LUBBOCK, Texas — Arnoldo Mendoza Lepez, 45, of Littlefield, Texas, was sentenced this morning before Senior U.S. District Judge Sam R. Cummings to 405 months in federal prison following his guilty plea to his role in a methamphetamine distribution conspiracy, announced U.S. Attorney John Parker of the Northern District of Texas.  A co-defendant, Joseph Raymond Jaramillo, Jr., 30, also of Littlefield, Texas, was sentenced last week to 365 months in federal prison following his guilty plea to his role in the same conspiracy.

 

Both Lepez and Jaramillo pleaded guilty in July 2017 to one count of possession with intent to distribute 500 grams or more of methamphetamine.  Both have been in custody since the time of their arrest in May 2017.

 

Co-defendant Zahir Rivera-Pineda, 27, pleaded guilty in June 2017 to his role in the conspiracy and was sentenced to 60 months in prison in September of this year.

 

According to plea documents filed in the case, on May 5, 2017, New Mexico State Police stopped a vehicle being driven by Rivera-Pineda that was found to contain approximately 20 pounds of suspected methamphetamine near Albuquerque, New Mexico.  Agents with Homeland Security Investigations (HSI) were able to determine that the methamphetamine was destined for a specific residence located in Littlefield, Texas.  HSI agents coordinated with agents from the Lubbock County, Texas Sheriff’s Office (LCSO) and Drug Enforcement Administration (DEA) to complete the delivery of the methamphetamine to the residence in an attempt to identify the individuals receiving the narcotics.

 

Shortly after the methamphetamine was delivered to the residence in Littlefield, agents executed a search warrant.  Inside the residence, agents located Jaramillo, Jr. and Lepez.  Inside the room with Jaramillo and Lepez, agents located in plain-view several of the bundles containing the methamphetamine that had just been delivered to the house.  The remainder of the bundles were located inside a hidden compartment located in the closet of the same room.  Agents found two firearms in the room with the defendants as well as several other firearms throughout the residence.

 

The methamphetamine located in the residence weighed a total of 8,833 grams.

 

The U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Drug Enforcement Administration, Lubbock County Sheriff’s Office, and New Mexico State Police conducted the investigation.  Assistant U.S. Attorney Sean Long was in charge of the prosecution.

           

           

# # #

DALLAS — Alan Okpechi, 30, of Garland, was sentenced yesterday afternoon by U.S. District Judge Jane J. Boyle to 60 months in federal prison for identify theft, announced U.S. Attorney John Parker of the Northern District of Texas.

Okpechi pleaded guilty to one count of conspiracy to commit access device fraud and has been in custody since his arrest in July 2016. 

Krisstopher Segura-Jatip and Morgen Nelson also pleaded guilty to their role in the conspiracy and were sentenced to 57 months and 24 months in federal prison, respectively.

 

According to plea documents filed in the case, beginning in April 2015 and continuing through July 13, 2016, Okpechi and his coconspirators purchased the identification of individuals, including names, social security numbers, driver's license numbers, and credit card numbers, through websites. Okpechi used the stolen and unauthorized identification to create false identification documents, including false Texas temporary driver's licenses, bearing the photos of Okpechi and his codefendants. The stolen identification was also used to make fraudulent, unauthorized purchases with credit and/or debit card accounts. Okpechi used an algorithm and an application on Nelson’s phone in order to generate credit card numbers that corresponded with and accessed open accounts to which Okpechi did not have authorization to access. Okpechi and other coconspirators obtained blank plastic cards or altered debit, credit, and gift cards, for the purpose of recoding the cards with unauthorized credit card information.  The credit cards were used on several occasions to reserve hotel rooms, including entire floors of hotels, and to rent vehicles.

 

Over the course of the conspiracy, Okpechi had possessed over 2,000 accounts belonging to other individuals.

 

The case was investigated by the U.S. Postal Inspection Service.  Assistant U.S. Attorney Jamie L. Hoxie prosecuted.

# # #

FORT WORTH, Texas — A Fort Worth, Texas, man, David Williams, 54, was arrested yesterday by special agents with the Federal Bureau of Investigation on a federal complaint charging him with engaging in a scheme to defraud insurance companies by submitting over $25 million in false and fraudulent claims for medical services.  The announcement was made today by U.S. Attorney John Parker of the Northern District of Texas.

Williams made his initial appearance yesterday before U.S. Magistrate Judge Jeffrey L. Cureton and will remain on bond pending further court hearings.

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

 

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

 

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

 

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

A federal criminal complaint is a written statement of the essential facts of the offense charged, and must be made under oath before a magistrate judge.  A defendant is entitled to the presumption of innocence until proven guilty.  The U.S. Attorney’s office has 30 days to present the matter to a grand jury for indictment.  The maximum statutory penalty for the charged offense is 10 years in federal prison and a $250,000 fine.

 

The investigation is being conducted by the FBI.  Assistant U.S. Attorney P.J. Meitl is in charge of the prosecution.

# # #

DALLAS — Jesus Aldana Gutierrez, 33, a Cuban citizen, was sentenced this morning by U.S. District Judge Sidney A. Fitzwater to 60 months in federal prison 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.

 

Gutierrez pleaded guilty in June 2017 to one count of conspiracy to commit access device fraud.  He has been in custody since he was arrested in September 2016.  Judge Fitzwater also ordered Gutierrez to pay $408,596.46 in restitution, joint and severally with his codefendants.

According to documents filed in the case, from at least January 2015 through July 2016, Gutierrez and others obtained lists of credit and debit card numbers belonging to other individuals online.  Gutierrez and his coconspirators 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 — Amna Cheema, 37, a Pakistani national, appeared before U.S. Magistrate Judge Renee Harris Toliver yesterday and pleaded guilty to one count of conspiracy to commit marriage fraud, announced U.S. Attorney John Parker of the Northern District of Texas.

Cheema will remain in custody pending sentencing which is set for January 22, 2018  Co-defendant Bilal Khaleeq, 47, is scheduled to begin trial on December 11, 2017 for his role in the conspiracy.  If convicted, Khaleeq faces a maximum statutory penalty of five years in federal prison and a $250,000 fine.

According to plea documents filed in the case, in May 2015, Cheema engaged in discussions with Khaleeq and another individual at Khaleeq’s law office to discuss planning Cheema’s marriage to Person A in order for Cheema to obtain legal status in the United States.  In exchange for agreeing to marry Cheema, Person A was paid $745 and promised more money after the immigration process was completed.  On June 15, 2015, Cheema married Person A to establish eligibility for legal status in the United States. 

 

Cheema, Person A and Khaleeq discussed the filing of the alien relative petition forms (I-130), the permanent residence applications (I-485), and additional evidence needed to ensure approval of those forms, including filing joint tax returns and placing articles of male clothing at Cheema’s house as further evidence of a valid marriage.

 

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

 

# # #

SAN ANTONIO, Texas — Gavin Friedman, 21, of Austin, Texas, was sentenced yesterday by U.S. District Judge David A. Ezra to 63 months in federal prison for sending threatening communications to President Obama, and the U.S. Attorney for the Western District of Texas, as well as threats to destroy the FBI field office in Houston.  The announcement was made today by U.S Attorney John Parker of the Northern District of Texas.

 

Friedman pleaded guilty to one count of making a threat against the president, one count of mailing – concerning an explosive and two counts of mailing threatening communications.  He has been in custody since the time of his arrest in December 2016.

 

“Threats such as these have no place in a civilized society and will be vigorously prosecuted,” said U.S. Attorney Parker.

 

According to plea documents filed in the case, on January 22, 2016, Friedman wrote and mailed a letter which contained a threat to take the life of the President Barack Obama. The letter stated that President Obama would be killed so Friedman could be martyred in the name of Allah.

 

On September 19, 2016, according to plea documents, Friedman made a threat, by mail, to damage and destroy the Federal Bureau of Investigation Field Office in Houston, Texas and the White House in Washington, D.C., by means of an explosive.  Also on September 19, 2016 and again on September 27, 2016, Friedman wrote and mailed two separate letters addressed to the United States Attorney for the Western District of Texas, which contained threats to injure the United States Attorney and stating that he was going to kill, and had hired people to kill, the United States Attorney, and to kidnap and kill his family.

 

The U.S. Secret Service and the U.S. Marshals Service investigated the case.  Assistant U.S. Attorney Mark Penley of the Northern District of Texas prosecuted the case, as the U.S. Attorney’s Office for the Western District of Texas is recused from the matter.

 

# # #

LUBBOCK, Texas — A 30-year-old Lubbock, Texas, woman, Kandi F. Phillips, was sentenced this morning by Senior U.S. District Judge Sam R. Cummings to serve 97 months in federal prison, following her guilty plea in May 2017 to one count of receipt of a visual depiction of a minor engaging in sexually explicit conduct, announced U.S. Attorney John Parker of the Northern District of Texas.

Judge Cummings order Phillips to surrender to the Bureau of Prisons on November 10, 2017.

“I have no idea what makes a person - a teacher no less - think it’s okay to engage in sexually explicit communication with a minor,” said U.S. Attorney Parker. “It simply boggles the mind.”

According to documents filed in the case, between December 2016 through February 2017, Phillips was employed as a high school teacher at a public high school in Lubbock County, Texas.  During her employment she began interacting online with a student at the school, and the communications turned sexual in nature.  Phillips received, by way of the Internet, photographs depicting this minor engaged in sexually explicit conduct. 

 

 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 case was investigated by the Frenship Independent School District Police Department, the Texas Department of Public Safety, the Lubbock Police Department, and the Federal Bureau of Investigation.  Assistant U.S. Attorney Steven M. Sucsy was in charge of the prosecution.

 

# # #

DALLAS —Bryce Edward Hansen, 44, of Dallas, Texas, who pleaded guilty in February 2017 to one count of being a convicted felon in possession of a firearm and one count of possessing a controlled substance with intent to distribute, was sentenced by U.S. District Judge Sam A. Lindsay to 300 months in federal prison.  U.S. Attorney John Parker of the Northern District of Texas made the announcement today.

According to documents filed in the case and statements made on the record at his sentencing hearing today, on June 3, 2016, law enforcement executed a search warrant at a storage unit located near an elementary school in Dallas, Texas.  A search of the unit resulted in the discovery of approximately 1.5 kilograms of methamphetamine, three firearms, and evidence of a laboratory used in the production of Gamma Hydroxybutyrate (GHB). Numerous drug scales and unused small zip lock baggies were also discovered in the storage unit.  Law enforcement discovered that Hansen, who has been previously convicted of several drug offenses, leased the storage unit. 

Following the search of the storage unit, law enforcement searched Hansen’s residence and found more methamphetamine and GHB along with U.S. currency and another firearm.   

 

The Drug Enforcement Administration, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives, investigated.

Assistant U.S. Attorney Jamie L. Hoxie prosecuted.

# # #

DALLAS — Brian Anthony Adams, 28, of Euless, Texas, appeared in federal court today and pleaded guilty before Chief U.S. District Judge Barbara M.G. Lynn to one count of being a felon in possession of a firearm and one count of possession of a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney John Parker of the Northern District of Texas.

Adams faces up to 10 years imprisonment for being a convicted felon in possession of a firearm, and at least 5 years and up to life imprisonment, which must be served consecutively to any other term of imprisonment, for possessing a firearm in furtherance of a drug trafficking crime. Adams has been in custody since the time of his arrest in July 2016.  Sentencing is set for January 10, 2018.

 

According to documents filed in the case, on April 7, 2016, officers with the Irving Police Department executed a search warrant at an apartment in Euless, Texas.  Adams was at the apartment when the officers executed the search warrant and Adams was arrested.  During the search of the apartment, officers found digital scales, drug distribution paraphernalia and a bag containing approximately 51 grams of cocaine.  Officers also found two loaded firearms strategically placed on top of the cabinets in the kitchen and another firearm in a bedroom.

 

Prior to April 7, 2016, Adams had been convicted on March 31, 2009 of aggravated robbery with a deadly weapon in Tarrant County, Texas, an offense he committed on June 3, 2008.

 

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Irving Police Department.  Deputy Criminal Chief Assistant U.S. Attorney Gary Tromblay and Assistant U.S. Attorney Jamie Hoxie are in charge of the prosecution.

 

# # #

Today, Attorney General Jeff Sessions announced several Department of Justice actions to reduce the rising tide of violent crime in America. Foremost of those actions is the reinvigoration of “Project Safe Neighborhoods,” a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.

 

In announcing this recommitment to Project Safe Neighborhoods, the Attorney General issued a memo directing United States Attorneys to implement an enhanced violent crime reduction program that incorporates the lessons learned since Project Safe Neighborhoods launched in 2001.

 

In a statement on the program, the Attorney General said:

 

“According to the FBI, the violent crime rate has risen by nearly seven percent over the past two years, and the homicide rate has risen by more than 20 percent. We cannot be complacent or hope that this is just an anomaly: we have a duty to take action.

 

“Fortunately, we have a President who understands that and has directed his administration to reduce crime. The Department of Justice today announces the foundation of our plan to reduce crime: prioritizing Project Safe Neighborhoods, a program that has been proven to work.

 

“Let me be clear – Project Safe Neighborhoods is not just one policy idea among many. This is the centerpiece of our crime reduction strategy.

 

“Taking what we have learned since the program began in 2001, we have updated it and enhanced it, emphasizing the role of our U.S. Attorneys, the promise of new technologies, and above all, partnership with local communities. With these changes, I believe that this program will be more effective than ever and help us fulfill our mission to make America safer.”

 

“My office is committed to working with those who live in high crime areas and our law enforcement partners, at all levels, to target the most violent criminals in the most violent areas of our communities,” said U.S. Attorney John Parker of the Northern District of Texas.

           

“The ATF Dallas Field Division remains committed to Project Safe Neighborhoods.” said ATF Special Agent in Charge William A. Temple. “ATF has effected measures aimed at securing successful crime gun traces, expanded the only national network that allows for the capture and comparison of ballistic evidence and implemented Crime Gun Intelligence Groups (CGIG) focused on supporting actionable, intelligence-based investigations. Our unique capabilities work in concert with the expertise of our local, state and federal partners to seek the most-appropriate prosecution and maximum sanctions for the public we serve.”

 

The Attorney General also announced the following Department of Justice initiatives to help reduce violent crime:

 

- Additional Assistant United States Attorney Positions to Focus on Violent Crime – The Department is allocating 40 prosecutors to approximately 20 United States Attorney’s Offices to focus on violent crime reduction.

 

- More Cops on the Streets (COPS Hiring Grants) – As part of our continuing commitment to crime prevention efforts, increased community policing, and the preservation of vital law enforcement jobs, the Department will be awarding approximately $98 million in FY 2017 COPS Hiring Grants to state, local, and tribal law enforcement agencies.

 

- Organized Crime and Drug Enforcement Task Force’s (OCDETF) National Gang Strategic Initiative –The National Gang Strategic Initiative promotes creative enforcement strategies and best practices that will assist in developing investigations of  violent criminal groups and gangs into enterprise-level OCDETF prosecutions.  Under this initiative, OCDETF provides “seed money” to locally-focused gang investigations, giving state, local, and tribal investigators and prosecutors the resources and tools needed to identify connections between lower-level gangs and national-level drug trafficking organizations.

 

- Critical Training and Technical Assistance to State and Local Partners –The Department has a vast array of training and technical assistance resources available to state, local and tribal law enforcement, victims groups, and others.  To ensure that agencies in need of assistance are able to find the training and materials they need, OJP will make available a Violence Reduction Response Center to serve as a “hot line” to connect people to these resources. 

 

- Crime Gun Intelligence Centers (CGIC) – The Department has provided grant funding to support a comprehensive approach to identifying the most violent offenders in a jurisdiction, using new technologies such as gunshot detection systems combined with gun crime             intelligence from NIBIN, eTrace, and investigative efforts.  These FY 2017 grants were awarded to Phoenix, AZ, and Kansas City, MO. 

 

- Expand ATF’s NIBIN Urgent Trace Program – The Department will expand ATF’s NIBIN Urgent Trace Program nationwide by the end of the year.  Through this program, any firearm submitted for tracing that is associated with a NIBIN “hit” (which means it can be linked to a shooting incident) will be designated an “urgent” trace and the requestor will get information back about the firearm’s first retail purchaser within 24 hours, instead of 5 to 6 business days.

 

# # #

            DALLAS —  Alfonso Mercado-Cruz, 32, of Chiapas, Mexico, was sentenced yesterday before U.S. District Judge David C. Godbey to 151 months in federal prison, following his guilty plea in January 2017 to one count of conspiracy to possess with intent to distribute and to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine, announced U.S. Attorney John Parker of the Northern District of Texas. 

            Co-defendants Raul Garibay, 25, Gerardo Galvan, 28, and Fernando Mora-Martinez, 43, also pleaded guilty to their role in the conspiracy and were previously sentenced.

            According to plea documents filed in Mercado-Cruz’s case, from January 1, 2016 through May 19, 2016, Mercado-Cruz, along with Galvan, Garibay and Mora-Martinez conspired to possess with intent to distribute 50 grams or more of methamphetamine.  The defendants used a trailer house, equipped with only a stove, in Grand Prairie, Texas, to cook and prepare methamphetamine for distribution.  

 

            A search of the trailer house revealed approximately 4 kilograms of methamphetamine in liquid, powder, and crystal form in various stages of processing.  

 

           The Drug Enforcement Administration, Lewisville Police Department, Grand Prairie Police Department, and the Dallas Police Department investigated the case.

           Assistant U.S. Attorney George Leal is in charge of the prosecution.

# # #

DALLAS — Tommy Nelson, Jr., 52, was sentenced today by U.S. District Judge David C. Godbey to 105 months in federal prison for the robbery of Shinhan Bank located in Dallas, announced U.S. Attorney John Parker of the Northern District of Texas.

 

Nelson pleaded guilty in April 2017 to one count of Bank Robbery.  He has been in custody since his arrest in January 2017.          

 

According to documents filed in the case, on January 17, 2017, Nelson grabbed a cash box from a team of bank employees while they restocked the drive thru ATM at Shinhan Bank.  An armed security guard who was also present attempted to stop Nelson and the two began struggling.  During the struggle Nelson attempted to take the security guard’s handgun.  While fighting over the handgun the weapon fired one round striking Nelson in the finger.  Once the officer was able to get control of his handgun he held Nelson at gunpoint until officers arrived.

 

The Federal Bureau of Investigation investigated the case.  Assistant U.S. Attorney Mark Penley was in charge of the prosecution.

# # #

           DALLAS — Kristopher Brian Anderson, 32, of Dallas, Texas, appeared this morning before U.S. District Judge Sidney Fitzwater and pleaded guilty to one count of mail fraud.  U.S. Attorney John Parker of the Northern District of Texas made today’s announcement.

           Anderson faces a maximum penalty not to exceed 20 years in federal prison and a $250,000 fine.  According to the plea agreement, he could also be ordered to pay restitution.  Anderson will remain on bond pending sentencing.  Sentencing is set for January 11, 2018.

           According to documents filed in the case, Pivotal Petroleum Partners LP and Pivotal Petroleum Partners II LP were privately held Texas corporations that specialized in acquiring and leasing non-operating working interests of oil and gas properties.  P2 Energy Solutions was a privately held company that provided various administrative services to the oil, gas and energy industry including financial and accounting management software for revenue processing and check distribution.  Empery Resource Consultants, LLC was created by Anderson for the purpose of fraudulently claiming false and fictitious petroleum “landmen” services allegedly provided to Pivotal Petroleum Partners LP and Pivotal Petroleum Partners II LP.  

  

            According to the factual resume, on May 14, 2014, Anderson was hired by Pivotal Petroleum Services as the corporate controller.  As controller, Anderson was responsible for the accounting operations of Pivotal Petroleum Partners LP and Pivotal Petroleum Partners II LP.    

 

            It was part of the scheme to defraud that during the period from August 28, 2014 through March 2, 2017, Anderson created false and fraudulent invoices in the name of Empery Resource Consultants and then submitted these fraudulent invoices to P2 Energy Solutions for payment. During this period, Anderson submitted 142 fraudulent invoices causing the fraudulent payment of $1,389,991.  Anderson spent funds stolen from Pivotal Petroleum Partners LP and Pivotal Petroleum Partners II, LP to support a lavish lifestyle.  Anderson fraudulently obtained an average of over $86,000 per month.  Among other things, these expenses included $451,683 in total cash withdrawals and $958,091 in credit card and debit card charges.

 

           The case was investigated by the United States Postal Inspection Service.  Assistant U.S. Attorney David Jarvis is in charge of the prosecution.

# # #

 

DALLAS — The last of 16 defendants charged and convicted in a methamphetamine distribution conspiracy that operated in the Dallas area has been sentenced, announced U.S. Attorney John Parker of the Northern District of Texas.

Tommy Rodriguez, 36, of Dallas, was sentenced by Chief U.S. District Judge Barbara M.G. Lynn yesterday to serve 180 months in federal prison, following his guilty plea to one count of conspiracy to distribute a controlled substance.

“There is a high cost to choosing drug trafficking as an occupation,” said U.S. Attorney Parker.  “The combined efforts of this office and our law enforcement partners will keep it that way.”

Other defendants charged and convicted in the case have been sentenced as follows:

           Eduardo Zavala-Ruiz, aka “Gold Coins,” “Primo,” “Lalo,” “Lalin,” 240 months   

           Zachary Whiteside, aka “Sharkey,” “Shark,” “Zach,” 214 ½ months

            Jose Mario Chavez-Bravo, aka “Rafael Lua-Maguna,” “Mickey,” 200 months

            Nicole Leedy, aka “Nicky,” 188 months

            Christopher Michael Eller, aka “Chris,” 135 months

            Rafael Hurtado, aka “Rafi,” “Ralphie,” 135 months

            Kyle Travis Kamp, 135 months

            Manuel Eguia, aka “Twenty,” 108 months

            Frank Allen Lonero, aka “Frankie,” 90 months

            Richard Islas, aka “Gordo,” 87 months

            Rene San-Miguel, 63 months

            Monica Maldonado-Pena, 51 months

            Albert Lee Longoria, 48 months

            Francisco Millan-Madrid, 48 months

            Kirstin Perviance, 48 months

            Karla Julissa Jimenez, 21 months

 

            One defendant remains a fugitive.

            According to documents filed in the case, in 2014, the above-listed defendants conspired together and with others to distribute and possess with the intent to distribute methamphetamine and cocaine in the Dallas area. 

            The North Texas High Intensity Drug Trafficking Area (HIDTA) task force investigated the case.  Assistant U.S. Attorney Phelesa Guy prosecuted. 

# # #

DALLAS — Nancy Pineda, 28, of Farmers Branch, Texas, appeared in federal court, this week, before U.S. Magistrate Judge Irma Carrillo Ramirez and pleaded guilty to her role in selling the heroin that caused a young woman’s overdose death at a McDonald’s restaurant in Farmers Branch in June 2016, announced U.S. Attorney John Parker of the Northern District of Texas.

 

Pineda pleaded guilty to one count of conspiracy to possess with the intent to distribute a controlled substance.  Pineda has been in custody since the time of her arrest in October 2016.  Sentencing is scheduled for January 11, 2018.

 

Three other men, charged in the same case, also appeared this week before U.S. Magistrate Judge Ramirez and U.S. Magistrate Judge Stickney and pleaded guilty to their roles in the trafficking of illegal narcotics.  Rogelio Bernal, 20, and Steven Gomez, 19, both of Dallas, Texas, and Zakariah Michael Wolf, 29, of Greenville, Texas, each pleaded guilty to one count of conspiracy to possess with the intent to distribute a controlled substance.  They will remain in custody pending sentencing, which is also set for January 11, 2018.

 

The defendants face a maximum penalty of not more than 20 years in prison and a fine up to $1,000,000.

 

According to the factual resume filed in Pineda’s case, in June 2016 Pineda sold user quantities of heroin out of a vehicle in the Dallas area.  Specifically, on June 8, 2016, Pineda travelled by car to a restaurant in Dallas to sell $20 worth of heroin to co-defendant Anthony Jaramillo.  Jaramillo then delivered the heroin to an individual identified as M.H.  On that same day, M.H. died at a McDonalds restaurant in Farmers Branch, Texas, after injecting the heroin she purchased from Jaramillo.

 

According to factual resumes filed in the case, beginning in 2016 until March 9, 2017, Bernal, and Gomez conspired to distribute illegal narcotics to customers in the Dallas area, as well as others who would travel from other cities to obtain drugs from them, including Wolf.  Wolf would purchase heroin from Bernal or Gomez, then distribute that heroin and other illegal narcotics in the Greenville, TX, area.

 

A search warrant executed on March 9, 2017 at the residence of Bernal and Gomez revealed a number of weapons, 490 grams crack cocaine, and 2,036 grams of methamphetamine.

 

The Farmers Branch Police Department, Greenville Police Department, and the Drug Enforcement Administration investigated the case with assistance from the Grand Prairie Police Department and Dallas Police Department.  Deputy Criminal Chief Assistant U.S. Attorney Rick Calvert and Assistant U.S. Attorney Myria Boehm are prosecuting.

 

# # #

DALLAS — Following a three-day trial before U.S. District Judge Jane J. Boyle, a federal jury convicted Jeffrey Sila, 32, a citizen of Nairobi, Kenya, yesterday on two counts of theft of public funds and one count of aggravated identity theft, announced U.S. Attorney John R. Parker of the Northern District of Texas.

Sila is to be sentenced by U.S. District Judge Jane J. Boyle on January 11, 2018.  The maximum statutory penalty for the identity theft count is a mandatory term of two years in prison and a $250,000 fine.  The maximum statutory penalty for the theft of public funds counts are a maximum statutory penalty of ten years in prison and a $250,000 fine.  Sila has been in custody since the time of his arrest in September 2016.

The government presented evidence at trial that Sila illegally obtained a $76,592.86 United States Treasury check payable to an individual identified as C.S. that had been issued on a federal income tax return filed electronically from Kenya.  On August 9, 2016, Sila delivered the treasury check to an Internal Revenue Service (IRS) Criminal Investigation (CI) undercover agent in exchange for $48,000.  Sila was arrested on September 11, 2016, at Los Angeles airport as he attempted to board a flight to Nairobi, Kenya.  Sila was also convicted of the theft of another treasury refund check that had been issued on an electronically filed return filed in 2012.

 

The case was investigated by IRS-CI.  Assistant U.S. Attorneys Christopher Stokes and Sid Mody are prosecuting.

# # #

DALLAS — Ronee Damien Williams, 25, of Dallas, Texas was convicted by a federal jury yesterday of multiple firearm and drug offenses following a three-day trial before U.S. District Judge David C. Godbey, announced U.S. Attorney John Parker of the Northern District of Texas.

Williams was convicted on one count of felon in possession of a firearm, 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 crime.  He faces a penalty of not more than ten years in prison and a $250,000 fine for the felon in possession charge and not less than five years and not more than forty years in prison and a $5,000,000 fine for the drug and firearm possession charges.  He has been in custody since the time of his arrest in March 2016.  Sentencing is scheduled for January 8, 2018.

Co-defendant Jordan Jamichael Mims pleaded guilty in April 2017 to the same charges and was sentenced by Judge Godbey to a total of 120 months in prison. 

The government presented evidence that Williams had previously been convicted of a crime punishable by imprisonment for a term exceeding one year.  On September 18, 2015, Dallas Police executed a search warrant on a house where Williams and others were selling cocaine, PCP, and marijuana. At the time the search warrant was executed, Williams was inside the house that had multiple firearms, more than 28 grams of cocaine and a large amount of PCP.

 

The ATF and Dallas Police investigated.  The case is being prosecuted by Assistant U.S. Attorneys John Boyle and Shane Read.

# # #

DALLAS — Mike Cano of Wylie, Texas, appeared in federal court this morning before U.S. Magistrate Judge Paul D. Stickney and pleaded guilty to one count of aiding and assisting in the preparation of false individual income tax returns, announced U.S. Attorney John Parker of the Northern District of Texas.

Sentencing is set for January 10, 2018, before Chief U.S. District Judge Barbara M.G. Lynn.  Cano faces a statutory maximum penalty of three years in federal prison and a $100,000 fine.  He may also be ordered to pay restitution. 

On September 21, 2016, Cano and co-defendants Jimmy Luis Briseno, Rene N. Barrera, Sr. and Christopher Lee DeLeon were charged with conspiracy to defraud the IRS and other charges related to the filing of false tax returns.  According to the factual resume filed in the case, from January 2011 through March 2012, Cano worked as a tax return preparer for Briseno at Tax Genius offices in Garland, Texas.  In his plea papers, Cano admitted that DeLeon, Briseno, Barrera and Cano all routinely prepared and caused to be electronically filed with the IRS individual income tax returns that contained one or more of the following falsely inflated or fictitious items: false Forms Schedule C; false and fabricated Education Credits, and false items used to inflate and maximize the Earned Income Tax Credit (EITC) on the tax return.  Cano also stated that Briseno trained Cano and others how to file false tax returns in 2011 and 2012.  During this period, Cano and his co-defendants caused false and fraudulent information and documents to be submitted to the IRS with the intent to fraudulently cause the IRS to pay refunds based on this false tax information.

 

Cano caused the filing of seven false tax returns resulting in a tax loss of $31,367 due to false refunds claimed.

 

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

# # #

DALLAS —  This morning, U.S. District Judge David C. Godbey sentenced Raul Garibay, 25, of Grand Prairie, Texas, to 240 months in federal prison, following his guilty plea in March 2017 to one count of conspiracy to possess with intent to distribute and to distribute a schedule II controlled substance, announced U.S. Attorney John Parker of the Northern District of Texas. 

Co-defendants Alfonso Mercado-Cruz, 32, Gerardo Galvan, 28, and Fernando Mora-Martinez, 43, also pleaded guilty to their role in the conspiracy.  Judge Godbey sentenced Mora-Martinez to 66 months in prison and Galvan to 70 months in prison.  Mercado-Cruz is scheduled to be sentenced on October 2, 2017.

According to plea documents filed in Garibay’s case, from January l, 2016 through May 19, 2016, Garibay, along with Galvan, Mercado-Cruz and Mora-Martinez conspired to possess with intent to distribute 50 grams or more of methamphetamine.  The defendants used a trailer house, equipped with only a stove, in Grand Prairie, Texas, to cook and prepare methamphetamine for distribution.  

 

A search of the trailer house revealed approximately 4 kilograms of methamphetamine in liquid, powder, and crystal form in various stages of processing. 

 

The Drug Enforcement Administration, Lewisville Police Department, Grand Prairie Police Department, and the Dallas Police Department investigated the case.

Assistant U.S. Attorney George Leal is in charge of the prosecution.

# # #

DALLAS — Bruce Kevin Hawkins, 52, of Desoto, Texas, was sentenced this morning before U.S. District Judge David C. Godbey to serve 41 months in prison and pay $219,109 in restitution for his role in a foreclosure rescue scheme that exploited vulnerable homeowners facing foreclosure, announced U.S. Attorney John Parker of the Northern District of Texas.

Hawkins pleaded guilty in June 2017 to one count of mail fraud.  He has been in custody since the time of his arrest in January 2017. 

 A federal grand jury in Dallas returned an indictment in December 2016 charging Hawkins and three others with felony offenses stemming from a “foreclosure rescue scheme” they ran from approximately February 2012 through January 2013.  Richard Bruce Stevens, 51, of San Antonio, Texas, and Christina Renee Caveny, 37, of Dallas, also pleaded guilty and will be sentenced later this year.  Mark Demetri Stein, 36, of Carrollton, Texas, is awaiting trial.

According to documents filed in the 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.  Hawkins 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, Hawkins 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 prosecuted since May 2013 as a result of the Bankruptcy Fraud Initiative in the Northern District of Texas.  As part of that initiative, 23 defendants have been convicted and 2 defendants are pending trial.

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

# # #

LUBBOCK, Texas — Steven Michael Turnbow, 33, of Leuders, Texas, was sentenced today by U.S. District Judge Reed C. O’Connor to serve a total of 87 months in federal prison and an eight-year term of supervised release, following his guilty plea to receipt of child pornography, announced U.S. Attorney John Parker of the Northern District of Texas.  

Turnbow has been in custody since his arrest in March 2017.  He pleaded guilty in May 2017 to one count of receipt of visual depictions of minors engaging in sexually explicit conduct.

According to the factual resume filed in the case, between 2015 through July 30, 2016, Turnbow received, by way of the Internet, several images and videos which depict minors engaged in sexually explicit conduct.  Turnbow used the Wi-Fi signal from his neighbor’s house to access the Internet.  When he saw that his neighbors’ residence was being searched by law enforcement, he removed the computer hard drive from his desktop computer, which he had been using to search for, and download, images and videos of minors engaged in sexually explicit conduct, and threw it in a river near his residence.

These cases were 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 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.”

 

U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Shackelford County Sheriff’s Office conducted the investigation.  Assistant U.S. Attorney Steven M. Sucsy prosecuted the case.

 

# # #

DALLAS — Christopher Lee DeLeon of Allen, Texas, who was one of several tax preparers at Tax Genius in Garland, Texas, appeared in federal court this morning before U.S. Magistrate Judge Paul D. Stickney and pleaded guilty to one count of aiding and assisting in the preparation of a fraudulent tax return, announced U.S. Attorney John Parker of the Northern District of Texas.

Sentencing is set for January 10, 2018, before Chief U.S. District Judge Barbara M.G. Lynn.  DeLeon faces a statutory maximum penalty of three years in federal prison and a $100,000 fine.  He may also be ordered to pay restitution. 

On September 21, 2016, DeLeon and co-defendants Jimmy Luis Briseno, Rene N. Barrera, Sr. and Mike Cano were charged with conspiracy to defraud the IRS and other charges related to the filing of false tax returns.  According to the factual resume filed in the case, from January 2011 through February 2012, DeLeon worked as a tax return preparer with Briseno, Barrera, and Cano at Tax Genius offices in Richardson and Garland, Texas.  In his plea papers, DeLeon admitted that DeLeon, Briseno, Barrera and Cano all routinely prepared and caused to be electronically filed with the IRS individual income tax returns that contained one or more of the following falsely inflated or fictitious items: false Forms Schedule C; false and fabricated Education Credits, and false items used to inflate and maximize the Earned Income Tax Credit (EITC) on the tax return.  DeLeon also stated that co-defendants Briseno and Barrera trained DeLeon in how to file false tax returns in 2011 and 2012.  During this period, DeLeon and his co-defendants caused false and fraudulent information and documents to be submitted to the IRS with the intent to fraudulently cause the IRS to pay refunds based on this false tax information.

 

DeLeon caused the filing of eight false tax returns resulting in a tax loss of $60,618 due to false refunds claimed.

 

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

# # #

DALLAS — Jeffrey Wittman, 52, and his company JBJ Services, LLC (“JBJ”), appeared in federal court yesterday morning before U.S. Magistrate Judge Irma Carrillo Ramirez and pleaded guilty to charges related to the ownership and operation of at least two businesses that were fronts for illegal brothels in Dallas, announced U.S. Attorney John Parker of the Northern District of Texas.

 

Specifically, Wittman and JBJ pleaded guilty to one count of conspiracy to violate the Travel Act.  Wittman faces a maximum penalty of not more than 5 years in federal prison and a $250,000 fine.  Wittman has agreed to forfeit the building that was used to run one of the brothels and has agreed to pay a money judgment of not less than $200,000.  JBJ faces a maximum penalty of a fine not to exceed $500,000 and has agreed to pay a money judgment of not less than $200,000.  Wittman has been in custody since the time of his arrest in March 2017.  A sentencing hearing has been set for January 10, 2018.  

 

Chongok Ellsworth, 62, is scheduled to plead guilty to the conspiracy.  Wittman’s wife, Chin Young Song, 50, and Puna Kim, 54, are awaiting trial.

 

According to documents filed in the case, during the time period from at least January 2014 through February 2017, Wittman, along with others, owned and/or operated brothels in the North Texas area.  Specifically, Wittman and his coconspirators managed, promoted, and facilitated brothels called “Sakura” and “The Palace.”  Wittman, who until his arrest in this case was working as a finance manager at Trophy Nissan, created JBJ with Song, to facilitate the operation of these businesses.  Wittman and JBJ entered into several contracts that facilitated the prostitution business enterprise and maintained a bank account from which the illegal businesses operated.  Wittman and his codefendants used the Internet, ATM machines, and phones to facilitate the brothels’ operations.  Several online advertisements for Sakura and The Palace were posted during the course of the conspiracy, many of which contained photos of scantily clad women and advertised phone numbers of each of the businesses.  In addition, both The Palace and Sakura leased space for ATMs to operate inside both businesses to further facilitate the brothels. 

 

The Federal Bureau of Investigation, with the assistance of the Dallas Police Department, investigated the case.  Assistant U.S. Attorneys Jamie L. Hoxie and Joseph A. Magliolo are in charge of the prosecution.

# # #

DALLAS, Texas — Latecia P. Hill, 51, of Garland, Texas, pleaded guilty today, before U.S. Magistrate Judge Paul D. Stickney, to one count of conspiracy to commit health care fraud stemming from a scheme to defraud Medicare through the submission of false claims for hearing related services. The announcement was made today by U.S. Attorney John Parker of the Northern District of Texas.

Hill faces a maximum penalty not to exceed 5 years in federal prison, a $250,000 fine, and may be ordered to pay restitution. Hill will remain on bond pending sentencing.

Latecia Hill’s mother, Pearle L. Madere, 72, pleaded guilty to her role in the conspiracy last month and is awaiting sentencing. Harlan R. Hill, 53, Latecia Hill’s husband, is awaiting trial.

According to documents filed in the case, Harlan Hill owned and operated Total Senior Ear Care (TSEC); Latecia Hill served as its administrator; and Pearle Madere ran day-to-day operations. TSEC, whose offices were located in Dallas, provided hearing-related services to Medicare beneficiaries living in nursing homes. TSEC physicians and medical assistants would go to a facility and would routinely see as many as 100 patients in a day, often spending less than 5 minutes with each patient. These contracted physicians and medical assistants would do a complete “sweep” of the facility and see every patient available, regardless of the need for hearing-related services. Many of the patients were unresponsive and had no way to communicate whether they wanted the service or not. These hearing services were then fraudulently billed to Medicare for reimbursement. This fraudulent business, created by Harlan and Latecia Hill and Pearle Madere caused Medicare to pay TSEC more than $5.1 million for services never rendered or necessary.

The FBI, the U.S. Department of Health and Human Services – Office of Inspector General, and the Texas Attorney General’s Medicaid Fraud Control Unit investigated this case as part of the Medicare Fraud Strike. Assistant U.S. Attorney Katherine Pfeifle is prosecuting.

# # #

DALLAS, Texas — Javier Giovanni Araujo, 34, of Austin, Texas, appeared this morning before U.S. Magistrate Judge Paul D. Stickney and pleaded guilty to one count of conspiracy to produce child pornography and one count of transportation of child pornography, announced John Parker, United States Attorney for the Northern District of Texas.

Araujo faces a statutory penalty of not less than 15 years and not more than 30 years in federal prison, a $250,000 fine and a lifetime of supervised release for the conspiracy count and a statutory penalty of not less than 5 years and not more than 20 years in federal prison, a $250,000 fine, and a lifetime of supervised release for the transportation count. Araujo has been in custody since his arrest in December 2016. A sentencing hearing has been set for January 10, 2018.

Co-defendant Garrett Alexander Mack, 29, of Dallas, Texas, also pleaded guilty to his role in the conspiracy and is scheduled to be sentenced on November 29, 2017.

According to documents filed in the case, from September 26, 2016 through October 7, 2016, Araujo and Mack discussed sexually abusing children and exchanged photos and videos of child pornography. Araujo agreed with Mack to produce child pornography involving a three-year-old child to which Araujo had access. Araujo coerced the child into engaging in sexually explicit conduct and produced photos and videos of the conduct.

Araujo also coerced another minor child to engage in sexually explicit conduct with him, which he recorded and transmitted the video to Mack.

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.”

The Federal Bureau of Investigation, the Dallas Police Department, and the Austin Police Department investigated. Assistant U.S. Attorney Jamie L. Hoxie is in charge of the prosecution.

# # #

DALLAS — A total of twenty individuals are now in custody following a law enforcement operation this week led by special agents of the Drug Enforcement Administration (DEA). Seventeen of the twenty charged were in the United States illegally at the time the offenses occurred. John Parker, U.S. Attorney for the Northern District of Texas announced today.

 

Seventeen of the twenty individuals are charged with conspiracy drug trafficking charges outlined in a criminal indictment returned in August 2017, and partially unsealed today. The other three individuals are charged in criminal complaints returned last week and this week in Dallas. One complaint remains partially sealed. One defendant charged in the indictment is in state custody on an unrelated state charges and has yet to make his appearance on the indictment. Four other defendants have not been arrested.

 

The defendants have made their initial appearances before U.S. Magistrate Judge Paul D. Stickney. Three defendants have detention hearings pending, but Magistrate Judge Stickney ordered that the remaining defendants be detained without bond pending resolution of the criminal case. Those arrested include:

 

   Juliana Millan, aka “Julie,” “Julie Lopez,” 33

   Horacio Romero Alpizar, aka “Old Man,” 57

   Erick Arellano, aka “Gordo,” “Gorras,” 23

   Joel Sanchez Bravo, aka “Um9449,” 42

   Marko Cardenas, aka “Um3821,” 29

   Rigoberto Flores-Gomez, aka “Zapatito,” 33

   Francisco Garcia, aka “Cacheton,” 49

   Claudia Garcia-Camacho, 22

   Juan Manuel Iturve, 36

   Mayra Lira, 27

   Noe Lopez-Martinez, 22

   Brandon Lutrick, 41

   Armando Martinez-Martinez, 26

   Gabriela Morales, 30

   Gerardo Ortiz, 27

   Martin Santana, 34

   Jose Guadalupe Valentin, aka “Chemo,” “Um6475,” 38

   Ricardo Valle, aka “Um 6025,” 33

   Rufino Santamaria-Varona, 23

   Franuel Teran-Rojo, 21

 

“Disrupting drug trafficking organizations like this one is a critical part of our mission,” said U.S. Attorney Parker. “But we can’t do it alone and that’s why our law enforcement partnerships are essential.”

 

“Today is one of many examples how law enforcement agencies and the prosecutors unite to make our communities a safer place,” said Special Agent in Charge Clyde E. Shelley, Jr. of the Drug Enforcement Administration. “We will continue to eliminate these threats to our citizens.”

 

This poly-drug organization distributed substantial quantities of methamphetamine and cocaine in Dallas, Texas, and other areas of the United States. During yesterday’s operation, law enforcement officers and agents seized approximately 26 kilograms of methamphetamine, three kilograms of heroin, four kilograms of cocaine, 22 handguns, three rifles, one silencer, 22 vehicles, one non-operational methamphetamine conversion laboratory, and approximately $300,000.

 

A federal criminal indictment is a written statement of the essential facts of the offense charged. A defendant is entitled to the presumption of innocence until proven guilty. The drug trafficking charges carry a mandatory minimum of 10 years’ imprisonment and a maximum of life, and a fine of 10,000,000.

A criminal complaint is a written statement of the essential facts of the offense charged and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The government has 30 days to present the matter to a grand jury for indictment.

Besides the DEA, other participating agencies include the United States Marshals Service, Homeland Security Investigations, Immigration and Customs Enforcement, United States Secret Service, Bureau of Alcohol Tobacco and Firearms, Dallas Police Department, Farmer’s Branch Police Department, Garland Police Department, Rockwall Police Department, Waxahachie Police Department, Plano Police Department, Collin County Sheriff’s Office, DeSoto Police Department, McKinney Police Department, Mesquite Police Department, Denton County Sheriff’s Office, Tulsa Police Department, Fort Worth Police Department, Rowlett Police Department, and the Texas Child Protection Services.

Assistant U.S. Attorney Suzanna Etessam is prosecuting.

 

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DALLAS — Ivania Ortiz, also known as “Ivania Reyes” and “Lisset Oz,” 32, originally from Nicaragua, was sentenced this morning by U.S. District Judge Sidney A. Fitzwater to 33 months in federal prison for her 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.

Ortiz pleaded guilty in March 2017 to one count of conspiracy to commit access device fraud. She has been in custody since the time of her arrest in July 2016. Judge Fitzwater also ordered Ortiz to pay $408,596.46 in restitution, joint and severally with her codefendants.

A federal grand jury returned a 20-count indictment in August 2016 charging Ortiz along with Elvis Johanny Ortiz Reyes, Jesus Aldana Gutierrez, Roberto Carlos Puebla Saavedra, Yaser Moreno, also known as “Adrian Perez,” Yokasta Garcia, also known as “Kathy Garcia,” and Norge Mayea, for their roles in the scheme.

According to documents filed in the case, from at least August 2014 through July 2016, Ortiz and others obtained lists of credit and debit card numbers belonging to other individuals online. Ortiz and her coconspirators 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. As a part of the judgment, Ortiz was ordered to pay over $360,000 to JPMorgan Chase.

 

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.

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LUBBOCK, Texas — Brian Landon Brown, 32, was sentenced today by Senior U.S. District Judge Sam R. Cummings to 240 months in federal prison for his role in a fentanyl distribution conspiracy, announced U.S. Attorney John Parker of the Northern District of Texas.

 

Brown pleaded guilty in June 2017 to one count of conspiracy to distribute and possess with intent to distribute furanyl fentanyl. He has been in custody since his arrest in May 2017.

 

“Fentanyl and its analogues are extremely potent synthetic opioids that can be 30 to 40 times stronger than heroin and up to 100 times more powerful than morphine,” said U.S. Attorney Parker. “As sadly proved to be the case here, it is also extremely deadly and failure to stop those who sell it is simply not an option.”

 

According to plea documents filed in the case, in the Summer of 2016, the Drug Enforcement Administration (DEA) and the Lubbock Police Department began receiving information about a large-scale drug ring distributing Fentanyl and Fentanyl analogues in the Lubbock area. Law enforcement learned that Brown was one of the largest distributors for the group, selling up to 10 grams of Furanyl Fentanyl per day.

 

On October 6, 2016, at 2:30 p.m. Brown met a 26-year-old male and sold Furanyl Fentanyl to that individual. Around 4:15 - 4:30 a.m. on October 7, 2016, that same individual was discovered unconscious at his residence. At approximately 5:05 a.m. that same day, the individual was pronounced dead. The Lubbock County Medical Examiner (LCME) did an autopsy and determined that the cause of death was drug toxicity from Furanyl Fentanyl. An investigation into the cause of death led law enforcement to Brown, who when confronted by law enforcement, admitted to selling Furanyl Fentanyl to the 26-year-old male the night of his death.

 

On October 17, 2016, Brown was arrested in Lubbock, Texas, on an unrelated arrest warrant. At the time of his arrest, Brown possessed a vial of .291 net grams of Furanyl Fentanyl. Brown admitted that he typically sold several grams of Furanyl Fentanyl per day.

 

Besides analgesia, Fentanyl produces a variety of pharmacological effects, including alteration in mood, euphoria, drowsiness, respiratory depression, suppression of cough reflex, constriction of pupils, and impaired gastrointestinal mobility. Fentanyl is a Schedule II controlled substance.

 

Furanyl Fentanyl is a controlled substance analogue that has a chemical structure substantially similar to Fentanyl, a Schedule II controlled substance under the Controlled Substances Act, and has a stimulant, depressant, or hallucinogenic effect on the central nervous system that is substantially similar to or greater than the stimulant, depressant, or hallucinogenic effect on the central nervous system of Fentanyl, a Schedule II controlled substance. A lethal dose of furanyl fentanyl is the equivalent of a single grain of salt.

 

The case was investigated by the Drug Enforcement Administration and the Lubbock Police Department. Assistant U.S. Attorneys Jeffrey Haag and Russell Lorfing prosecuted.

 

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DALLAS — Arnoldo Rueda-Medina, aka “La Minsa,” 47, appeared before U.S. Magistrate Judge Irma C. Ramirez today and pleaded guilty to federal offenses in connection with his leadership roles in the “La Familia Michoacán” Mexican drug cartel, announced U.S. Attorney John Parker of the Northern District of Texas.

Specifically, Rueda-Medina pleaded guilty to one count of conspiracy to possess with the intent to distribute a Schedule II controlled substance and one count of conspiracy to launder monetary instruments. He faces a statutory sentence of not less than 10 years and up to life in federal prison and up to a $4 million fine on the drug conspiracy count. The money laundering conspiracy count has a maximum statutory sentence of 20 years in federal prison and a fine of not more than $500,000 or twice the value of the property involved in the transaction, whichever is greater. Rueda-Medina will remain in custody pending sentencing.

“The cartel leadership in Mexico is not immune from our reach,” said U.S. Attorney Parker. “It may take time, but we’ll take whatever time is necessary to bring justice to those who export their drug-related misery and death to our north Texas communities.”

 

“High ranking Cartel figures operating in the North Texas area will not be tolerated,” said the DEA Dallas Field Division’s Special Agent in Charge Clyde E. Shelley, Jr. “The DEA and The US Attorney’s Office are working around the clock to combat the loss of life due to Medina and the continuing threat posed to our communities by the remnants of the La Familia Michoacán.”

On February 25, 2010, the U.S. Department of the Treasury sanctioned Rueda-Medina under the Foreign Narcotics Kingpin Designation Act (Kingpin Act) for his involvement in drug trafficking. The Kingpin Act blocks all property and interests in property, subject to U.S. jurisdiction, owned or controlled by significant foreign narcotics traffickers, as identified by the President. The act also prohibits U.S. citizens and companies from doing any kind of business activity with Rueda-Medina, and it virtually froze all of his assets in the United States. Rueda-Medina was arrested in Michoacán, Mexico on July 11, 2009, and was extradited to the United States on January 27, 2017.

According to plea documents, from September 2007 through October 21, 2009, Rueda-Medina held a leadership position within the La Familia Michoacán (LFM), a Mexican drug cartel and organized crime syndicate based in the Mexican state of Michoacán. LFM was responsible for trafficking thousands of kilograms of methamphetamine into the United States through border checkpoints near Laredo, Texas and Tijuana, Mexico and delivered to stash locations in the Northern District of Texas and elsewhere.

 

LFM used a sophisticated network of individuals in Mexico and the United States, according to plea documents, to distribute the methamphetamine in the Dallas-Fort Worth area and to collect proceeds from the methamphetamine sales. The drug proceeds that were collected were delivered to cartel members or associates in Mexico either by way of bulk cash smuggling in vehicles utilized by LFM couriers or through money remitters such as Western Union.

 

The case was investigated by the Drug Enforcement Administration, the Dallas Police Department and the Garland Police Department; the U.S. Marshals Service, U.S. Customs and Border Protection and U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) provided special assistance. Department of Justice’s Office of International Affairs also provided assistance in bringing the defendant to the United States to face charges. The Government of Mexico also provided assistance in the investigation and in securing the extradition of Rueda-Medina to the United States.

This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of OCDETF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.

Deputy Criminal Chief Assistant U.S. Attorney Rick Calvert and Assistant U.S. Attorney George Leal are in charge of the prosecution.

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DALLAS — Nineteen defendants who were convicted on federal felony offenses stemming from their roles in a drug distribution conspiracy have been sentenced, announced John Parker, U.S. Attorney for the Northern District of Texas.

 

Rebecca Grimes, 32, of Dallas, was sentenced yesterday by Chief U.S. District Judge Barbara M.G. Lynn to 108 months in federal prison. Others were previously sentenced as follows:

   Josue Tijerina, aka “J,” 31, of Dallas – 240 months

   Joshua Diaz, 28, of Dallas -240 months

   Guadalupe Segovia, aka “Sleepy,” 44, of Mesquite – 240 months

   Tina Connolly, aka “Tina Connolly,” 56, of Dallas – 240 months
   Christina Bruffy, aka “Christine Bruffy,” 48, of Mesquite – 188 months

   Edgar Fallad-Martinez, aka “Edgar Fallas-Martinez,” 29, of Dallas – 168 months
   Stephanie Laza, 45, of Mesquite – 135 months
   Stephanie Hernandez, aka “Stephanie Kinney,” 28, of Dallas – 120 months

   Tiffany Gundermann, 27, of Waco – 87 months

   Leo Najera-Padilla, 30, of Dallas – 87 months

   Oralia Acosta, aka “Oralia Morris,” 52, of Dallas – 84 months

   Shelby Wiggins, 25 of Greenville – 72 months

   Michael Ramos, 21, of Mesquite – 72 months
   Luan Vo, 41, of Irving – 54 months

   Deborah Uribe, aka “Deberah Uribe,” 46, of Kaufman – 48 months

   Carson Baker, 24, of Mesquite – 48 months
   Katy Anderson, aka “Kay Scott,” 36, of Garland – 33 months
   Earvin Gibson, 46, of Dallas – 24 months

 

“Drug dealers like these bring nothing but misery to the communities they plague,” said U.S. Attorney Parker. “With the help of our law enforcement partners, we will bring them down.”

The investigation into this drug trafficking organization, which operated out of the Pleasant Grove, Seagoville and Balch Springs areas of the DFW metroplex, began in early January 2016. During the investigation, law enforcement has seized more than 6700 grams of methamphetamine, approximately 13.2 kilograms of methamphetamine oil, 62 grams of marijuana, 2.5 grams of heroin, and 20 ml of gamma hydroxybutyrate (GHB), as well as 12 firearms and $12,379 in cash.

 

The Department of Public Safety and the Dallas Police Department investigated. Assistant U.S. Attorney Andrew Wirmani prosecuted.

 

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DALLAS — Eight members or associates of the Jalisco New Generation Cartel have been charged in a federal indictment, unsealed today, with felony offenses stemming from their role in a large scale methamphetamine drug trafficking organization that operated in the Dallas and Desoto areas, announced U.S. Attorney John Parker of the Northern District of Texas.

 

Six of the defendants had been charged in a federal complaint filed earlier this month. All eight defendants, listed below, are charged with one count of conspiracy to possess with intent to distribute a controlled substance and at least one count of possession with intent to distribute a controlled substance. The defendants will remain in custody pending further court proceedings.

   Marco Antonio Gonzalez, 31,

   Ricardo Mendez-Negrete, aka “Jose Negrete,” 42

   Jose Trinidad Medina Tapia, aka “Alex Aviles,” 31,

   Miguel Carrillo-Ayala, aka “Tomas Rodriguez,” 38

   Alma Zoraida Borrayo-Villasenor, 32,

   Javier Guizar-Hernandez, aka “Jorge Hernandez,” 28,

   Hector Garcia-Gomez, 36

   Ivan Gonzalez, 22

 

Borrayo-Villasenor, Carrillo-Ayala, Tapia, Guizar-Hernandez are all citizens of Mexico and were in the United States illegally when the offenses charged occurred.

 

“Drug trafficking networks like this one are responsible for fueling north Texas’ largest drug threats, including methamphetamine and heroin,” said U.S. Attorney Parker. “Working with our local and federal law enforcement partners to dismantle them and bring them to justice, as we did here, is a top priority for this office.”

 

According to the indictment, in August 2016 through August 31, 2017, the defendants were involved in the trafficking of thousands of kilograms of methamphetamine. The defendants utilized multiple locations in residential neighborhoods in Dallas and Desoto to serve as laboratories for the recrystallization of methamphetamine. An automotive business was also utilized to store large quantities of narcotics and proceeds of drug sales were used to purchase vehicles in an effort to disguise the source of those funds.

 

Law enforcement executed search warrants on August 31, 2017 and seized approximately 750 kilograms of methamphetamine in both finished and liquid form, which was valued at $5 - $7 million, approximately 2 kilograms of cocaine and 6 kilograms of heroin.

 

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, statutory penalties range up to life in federal prison.

The Drug Enforcement Administration investigated the case with assistance from the Ellis County Sheriff's Office, Garland Police Department, Waxahachie Police Department, Dallas Police Department, Internal Revenue Service, and Texas Comptroller’s Office.

 

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

 

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DALLAS – Noble U. Ezukanma, 57, of Fort Worth, Texas, was sentenced today by U.S. District Judge Jane Boyle to 200 months in federal prison and ordered to pay $34,003,151.24 in restitution for his role in an over $50 million Medicare fraud scheme, announced U.S. Attorney John Parker of the Northern District of Texas.

 

Ezukanma was convicted, following a five-day trial, in March 2017 of one count of conspiracy to commit health care fraud and six counts of health care fraud. He was taken into custody following the verdict.

 

“This is the kind of flagrant fraud that drives up health care costs to consumers everywhere,” said U.S. Attorney Parker. “In return, this office will do everything we can to drive up the costs to those who choose to engage in health care fraud as a profession.”

 

Co-defendants Oliva A. Padilla, 57, and Ben P. Gaines, 55, have pleaded guilty to their role in the scheme and are awaiting sentencing. The following co-defendants have also pleaded guilty and were previously sentenced:

 

Myrna S. Parcon, a/k/a “Merna Parcon,” 62, 120 months and $51,497,930.87 in restitution Ransome N. Etindi, 57, 30 months and $18,309,171.21 in restitution

Lita S. Dejesus, 70, 24 months and $4,193,655.78 in restitution

 

According to evidence presented at trial, Ezukanma, Parcon, and Dejesus owned/operated US Physician Home Visits (USPHV), a/k/a “Healthcare Liaison Professionals, Inc.” located on Viceroy Drive in Dallas. Parcon was the owner/manager and Ezukanma was a licensed medical doctor who had an ownership interest in USPHV. Both Ezukanma and Etindi provided their Medicare number to the company to use to submit Medicare claims. Dejesus served in various roles at USPHV, including office manager.

 

Gaines formed A Good Homehealth (A Good), a/k/a “Be Good Healthcare, Inc.,” which was located in the same office as USPHV. Parcon, who owned and operated A Good, purchased the company through a “straw” buyer; both Gaines and Parcon concealed Parcon’s ownership.

 

Parcon and Padilla formed Essence Home Health (Essence), a/k/a “Primary Angel, Inc.,” located on Midway Road in Addison, Texas.

 

While the three companies appeared to be set up as three separate entities, the companies worked as one; the same employees often worked for all three companies and were often paid by all three companies.

 

According to evidence presented at trial, from January 1, 2009 to approximately June 9, 2013, Ezukanma and Etindi certified 94% of the Medicare beneficiaries receiving home health services from A Good, and 65% of the Medicare beneficiaries receiving home health services from Essence. Had Medicare known of the true ownership and improper relationship between the three companies, Medicare would not have allowed these companies to enroll in the program and bill for services.

 

USPHV submitted billing primarily under Dr. Ezukanma’s Medicare provider number, regardless of who actually performed the service. They billed at an alarming rate, generally billing for only the most comprehensive physician exam, and always adding a prolonged service code. USPHV submitted claims to Medicare for physician visits of 90 minutes or more, when most visits took only 15 to 20 minutes. Most all of USPHV patients came from home health companies soliciting certifications and recertifications for home health. More than 97% of USPHV Medicare patients received home health care, whether they needed it or not. The false certifications caused Medicare to pay more than $40 million for fraudulent home health services.

 

The case was investigated by the U.S. Department of Health and Human Services – Office of Inspector General, the FBI, the and the Texas Attorney General’s Medicaid Fraud Control Unit and were brought as part of the Medicare Fraud Strike.

 

Assistant U.S. Attorneys Katherine Pfeifle and Douglas Brasher prosecuted.

 

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