Northern District of Texas

FORT WORTH, Texas — Baldemar Solis, aka “Balt,” 45, formerly of Arlington, Texas was sentenced today by U.S. District Judge John McBryde to Life in federal prison, announced U.S. Attorney John Parker of the Northern District of Texas.

Solis was convicted of one count of conspiracy to possess with intent to distribute a controlled substance at trial in February 2017. Solis, who had been a fugitive since 2012, has been in custody since the time of his arrest in September 2016.

“Drug traffickers who think they can just skip town when things get hot, be on notice,” said U.S. Attorney Parker. “We have the resources, determination, and patience to find you and bring you to justice, however long that may take.”

Evidence introduced at trial showed that Solis was a multi-kilogram methamphetamine distributor who routinely supplied members of the Aryan Brotherhood of Texas with methamphetamine. Evidence introduced at trial also showed that in approximately June 2012, as law enforcement officers from various agencies began arresting Solis’s co-conspirators, Solis fled the area and remained in hiding in South Texas until his apprehension in September 2016.

According to documents filed in the case, beginning in January 2011 and continuing until June 2012, Solis, along with others did knowingly and intentionally combine, conspire, confederate, and agree to distribute 50 grams or more of methamphetamine, a Schedule II controlled substance.

The Arlington Police Department, Tarrant County Narcotics Unit, Grand Prairie Police Department, Federal Bureau of Investigation, the Drug Enforcement Administration, and the U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated. Assistant U.S. Attorneys Shawn Smith and Aisha Saleem prosecuted.

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LUBBOCK, Texas — Michael Sebastion Ford, 24 of Lubbock, was sentenced today by Senior U.S. District Judge Sam R. Cummings to 150 months in federal prison on a methamphetamine distribution conviction, announced John Parker, U.S. Attorney for the Northern District of Texas.

Ford pleaded guilty in February 2017 to an indictment charging one count of possession with intent to distribute 50 grams or more of methamphetamine. He has been in custody since December 2016, after the return of that indictment.

Rene Ortiz, 42, also pleaded guilty in February 2017 to the same offense and was sentenced by Judge Cummings to 200 months in federal prison on May 26, 2017.

According to documents filed in the case, on October 25, 2016, officers with the Lubbock County Sheriff’s Office, operating in an undercover capacity, called Ford and reached an agreement for Ford to sell the officers two ounces of methamphetamine for $1,300. The deal was scheduled to take place on October 26, 2016 at a residence located in Lubbock. The undercover officer arrived at the location and spoke with Ford who told the officer that his cousin would be bringing the methamphetamine later on. The undercover officer left the residence and told Ford to notify him when the drugs had arrived. Ford texted the officer a few moments later to tell the officer that the drugs had arrived at the residence. During this time, officers observed a vehicle arrive at the residence and saw Ford approach the front passenger side of the vehicle and talk to the driver. As officers approached the residence, Ford saw them and ducked down next to the vehicle before running into the residence where he was then arrested. Officers approached the vehicle and identified the driver as Ortiz. As Ortiz exited the vehicle, officers observed a bag containing approximately 10 grams of methamphetamine on the driver side floor mat. Officers also found a torn baggie underneath the vehicle that contained approximately 26 grams of methamphetamine and found another 30.4 grams of methamphetamine behind the driver seat. A pistol and ammunition were also found in a shoe box in the back of the vehicle.

The Lubbock County Sheriff’s Office and U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated. Assistant U.S. Attorney Sean Long prosecuted.

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DALLAS — Robert Gausman, 54, of Rockwall, Texas, appeared this morning before U.S. Magistrate Judge Paul D. Stickney and pleaded guilty to one count of misappropriation by fiduciary. U.S. Attorney John Parker of the Northern District of Texas made today’s announcement.

Gausman faces a statutory penalty not to exceed 5 years in federal prison and a $250,000 fine. According to the plea agreement, he could also be ordered to pay restitution. Gausman will remain on bond pending sentencing, which will be set at a later date.

According to documents filed in the case, from September 2014 and continuing to October 2016, Gausman was appointed by the Department of Veterans Affairs (VA), through his company “The WACKO Group LLC,” as the Paid Federal Fiduciary (PFF) for four individuals, each veterans who have been deemed incompetent and are receiving benefits from the VA. As a PFF, the VA appointed Gausman to manage the VA benefits of these beneficiaries because they are unable to manage their own finances. Gausman was only entitled to a 4% commission of the funds and permitted to use the money for preapproved expenditures. Gausman knew his role and what was allowed as a PFF, and yet knowingly and willfully embezzled the funds of these four veterans for his own use. In total, Gausman embezzled $40,668 in funds from these four beneficiaries.

The case was investigated by the Department of Veterans Affairs, Office of Inspector General. Assistant U.S. Attorney Kate Rumsey is in charge of the prosecution.

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DALLAS — Brittany Anders, 32, of Rowlett, Texas, was sentenced today before U.S. District Judge Jane J. Boyle for her role in a heroin distribution conspiracy, announced U.S. Attorney John Parker of the Northern District of Texas.

Anders was sentenced to 51 months in federal prison following her guilty plea in October 2016 to one count of possession with intent to distribute and the distribution of a mixture and substance containing a detectable amount of heroin. Anders has been in custody since his arrest in June 2016.

Anders was charged along with six others with various offenses related to a heroin distribution conspiracy. Of the seven charged, all have pleaded guilty, five have been sentenced.

According to documents filed in the case, on April 27, 2016, Anders met an individual in a McDonalds restaurant bathroom in Garland, Texas and exchanged one-half ounce of heroin for $820.

The Drug Enforcement Administration, Allen Police Department and Rockwall Police Department investigated. Assistant U.S. Attorney Suzanna Etessam prosecuted.

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DALLAS — Evetta Galloway Griffin, 49, of Grand Prairie was sentenced this afternoon by U.S. District Judge Jane J. Boyle to nine months in federal prison. U.S. Attorney John Parker of the Northern District of Texas made today’s announcement.

Griffin pleaded guilty in December 2016 to one count of theft or bribery concerning programs receiving federal funds. Judge Boyle ordered Griffin to pay $129,196.48 in restitution. Griffin was ordered to surrender to the Bureau of Prisons on September 6, 2017.

According to documents filed in the case, Griffin, a/k/a Evette Griffin, was the Director of Facilities and Administration for the Child Care Group (CCG) until late March 2015. The CCG is a non-profit corporation that receives federal grant funding to provide, among other things, Head Start services to promote the school readiness of young children from low-income families in the Dallas area. Together, Head Start and Early Head Start programs support the comprehensive development of children from birth to age five, in centers, child care partner locations and in their own homes.

Griffin had many duties at CCG that were related to the operation of their child care centers, as well as other responsibilities related to the administration of the corporate office and the procurement process related to federal grants.

As part of the scheme, Griffin created and executed an embezzlement, theft and fraud scheme in which she fraudulently billed CCG for fictitious printing services allegedly provided by A-1 Express Co or A-1 Express Inc. In fact, between April 25, 2011 and January 30, 2015, Griffin submitted approximately 100 fraudulent invoices to CCG that they paid. Griffin usually converted the checks that were made payable to A-1 Express Co or A-1 Express Inc. to cash, ultimately receiving approximately $115,000 from her embezzlement scheme.

The case was investigated by the U.S. Department of Health and Human Services (HHS) Office of Inspector General (OIG). First Assistant U.S. Attorney Chad Meacham prosecuted.

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DALLAS — Joshua Deunte Caldwell, 26, of Houston, Texas was sentenced today by U.S. District Judge Ed Kinkeade to serve a total of 108 months in federal prison, following his guilty plea in July 2016 to his role in the conspiracy to rob Tilak Jewelers in Irving, announced U.S. Attorney John Parker of the Northern District of Texas.

Caldwell pleaded guilty to one count of conspiracy to interfere with commerce by robbery and one count of using, carrying, and brandishing a firearm during and in relation to, and possessing and brandishing a firearm in furtherance of, a crime of violence. Caldwell has been in custody since his arrest in September 2015.

Caldwell was charged along with eleven other individuals in an indictment in February 2016. Afraybeom Traverom Jackson, 27, Dominique Pearson, 25, Hilton Murdock Aitch, 56, Irving Tyrone Flanagan, 47, Larry Solomon, 42, Terrence Lynn Thompson, 53, Anthony Ray Turner, Jr, 25, Treveon Dominique Anderson, 26, Michael Cornelious, 27, Xavier Rashad Ross, 25, and Vanlisa Scott, 47, were each charged with one count of one count of conspiracy to interfere with commerce by robbery and one count of using, carrying, and brandishing a firearm during and in relation to, and possessing and brandishing a firearm in furtherance of, a crime of violence. Out of the twelve, ten have pleaded guilty, one is set for trial in January 2018, and one has not made an appearance in the Northern District of Texas.

According to plea documents filed in the case, in the early morning hours on November 17, 2013, Aitch, Jackson, Caldwell, Pearson, Flanagan, Solomon, Aitch, Thompson, Turner, Anderson, Cornelious, and Ross, traveled from Houston, Texas, to the Dallas, Texas, area with the specific intent to rob the Tilak Jewelers store located at 8300 North MacArthur Boulevard, Suite 100, Irving, Texas. They stole a cargo van and a minivan after they arrived in the Dallas, Texas, area in order to avoid detection and apprehension by law enforcement.

Jackson, Caldwell, Pearson, Turner, Anderson, and Ross drove together in the stolen cargo van to the Tilak Jewelers store, with the specific intent to commit the robbery. Aitch, Flanagan, and Thompson participated in planning the robbery and positioned themselves outside the Tilak Jewelers store, but maintained communications with Jackson for the purpose of monitoring the robbery and alerting the participants of the presence of law enforcement.

Prior to entering the Tilak Jewelers store, Jackson, Caldwell, Pearson, Turner, Anderson, and Ross disguised their identities by wearing long­sleeved clothing, long pants, gloves, and items covering their faces. Jackson and the others entered the jewelry store by smashing the locked glass door with a hammer. After gaining entry into the store, they restrained the owners of the jewelry store with zip-ties, smashed jewelry display cases, and took jewelry from the owners and employees of Tilak Jewelers.

After securing the jewelry, Jackson, Caldwell, Pearson, Turner, Anderson, and Ross fled from the robbery using the stolen cargo van. They abandoned the cargo van at a predetermined location, where Solomon was waiting in the stolen minivan. Solomon then drove them to a second predetermined location, where Cornelious was waiting in a switch vehicle. Cornelious then used the switch vehicle to further facilitate their flight from the robbery and avoid detection and apprehension by law enforcement. Scott, who had traveled from Houston, met Pearson and the other co­conspirators at a different location and took possession of the stolen jewelry for the purpose of safely transporting it to Houston, Texas.

The Irving Police Department, Houston Police Department, and the Federal Bureau of Investigation investigated the case. Assistant U.S. Attorney Keith Robinson was in charge of the prosecution.

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DALLAS — Dwight Horton, 51, a former Mission Support Specialist (MSS) with U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Dallas, was sentenced this morning by U.S. District Court Judge Ed Kinkeade, announced U.S. Attorney John Parker of the Northern District of Texas.

Horton, a resident of Grand Prairie, Texas, pleaded guilty in August 2016 to one count of theft of government property. Judge Kinkeade sentenced Horton to a three-year term of probation and ordered him to pay $36,000 in restitution to HSI.

According to documents filed in the case, the investigation began in September 2014 when ICE, Office of Professional Responsibility in Houston received a referral from HSI Dallas indicating that MSS Horton had used a government fleet charge card to purchase automotive supplies without authorization for personal gain.

The investigation revealed that on several occasions, Horton used his government fleet charge card to purchase a set of four tires from at least two tire stores in Dallas, and on each of those occasions, he took the tires with him rather than having them installed on a vehicle. The HSI Dallas facility does not have a maintenance area/shop for mechanics to install tires on fleet vehicles.

The investigation further revealed that Horton used his government fleet charge card to purchase window tint. He also used it to purchase gas at a Tom Thumb in Grand Prairie for his personally-owned vehicles.

Horton resigned from his position at HSI Dallas on October 14, 2014.

The case was investigated by agents with ICE, Office of Professional Responsibility in Houston. Assistant U.S. Attorney Katherine Pfeifle prosecuted.

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DALLAS — Rudolf Suter, 66, formerly of Dallas, appeared in federal court this morning and pleaded guilty, before U.S. Magistrate Judge Paul D. Stickney, to one count of perjury in federal proceeding under oath. The announcement was made today by U.S. Attorney John Parker of the Northern District of Texas.

In March 2016, Suter failed to show up for a contempt hearing. Suter was then found guilty of civil contempt of court and a civil contempt warrant was issued for his arrest by United States District Judge David C. Godbey. Suter, a citizen of Switzerland, was arrested in December 2016 on Judge Godbey’s civil contempt warrant when he attempted to re-enter the United States. Suter has remained continuously in custody since his arrest. He faces a maximum statutory penalty of 5 years in federal prison and a $250,000 fine. Sentencing is set for September 18, 2017 before United States District Judge David Godbey.

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

This case is one of several felony prosecutions of bankruptcy-related crimes generated by the Bankruptcy Fraud Initiative in the Northern District of Texas. Suter is the 26th defendant to have been charged as part of that initiative; 18 have been convicted, 1 resulted in a mistrial, and 7 are pending trial.

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

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AMARILLO, Texas — Oved David Valenzuela-Ortega, who admitted trafficking a large quantity of methamphetamine, was sentenced yesterday by U.S. District Judge Sidney A. Fitzwater to 324 months in federal prison, announced U.S. Attorney John Parker of the Northern District of Texas.

Valenzuela-Ortega, 36, a citizen of Mexico, pleaded guilty in February 2017 to one count of possession with intent to distribute 500 grams or more of methamphetamine. He has been in custody since the time of his arrest in October 2016. Valenzuela-Ortega will be deported after serving his sentence.

“Working with our state and local partners, as was done here, to drive up the cost of trafficking drugs is a top priority of this office,” said U.S. Attorney Parker.

According to documents filed in the case, on October 26, 2016, a Texas Department of Public Safety trooper was working routine patrol on Interstate 40 in Carson County, Texas, when he stopped at the Loves truck stop in Conway, Carson County, Texas. The trooper observed a vehicle at the gas pumps, and that the driver of the vehicle was having difficulty operating the gas pumps.

The trooper made contact with the driver of the vehicle, Valenzuela, and offered to assist Valenzuela with the pumps. After noticing numerous indicators of possible criminal behavior the trooper asked for consent to search the vehicle. While searching the vehicle, the trooper discovered a duffle bag in the vehicle that contained five cellophane-wrapped bundles. The bundles contained 2,226 grams of methamphetamine.

The Texas Department of Public Safety and the Drug Enforcement Administration investigated. Assistant U.S. Attorney Sean Taylor prosecuted.

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AMARILLO, Texas — William James Peddicord, 31, Jammie Lee Moore, 45, John-Kiet Dinh Nguyen, 30, and Drew Kendall Frost, 38, were sentenced this week by U.S. District Judge Sidney A. Fitzwater for their roles in trafficking methamphetamine, announced U.S. Attorney John Parker of the Northern District of Texas.

Peddicord was sentenced to 240 months in federal prison following his guilty plea in March 2017 to one count of distribution and possession with intent to distribute methamphetamine. Moore was sentenced to 235 months in federal prison following his guilty plea to one count of distribution and possession with intent to distribute methamphetamine in February 2017. Nguyen was sentenced to 100 months in federal prison following his guilty plea to one count of possession with intent to distribute 50 grams or more of methamphetamine in March 2017. Frost was sentenced to 48 months in federal prison following his guilty plea to one count of unlawful use of a communications facility in February 2017. The defendants have been in custody since their arrest in December 2016.

According to plea documents filed relating to Moore, on August 18, 2015, law enforcement executed a search warrant on Moore’s residence located in Amarillo, Texas. Agents located 9 individual baggies of methamphetamine in the kitchen freezer, a baggie of methamphetamine on the kitchen table, and a plastic container with methamphetamine in the bedroom. Two pistols were located in the bedroom under the bed. The net weight of the methamphetamine found at Moore’s residence was 313.63 grams.

According to plea documents filed relating to Peddicord and Nguyen, on May 13, 2015, law enforcement executed a search warrant on Peddicord’s residence located in Amarillo, Texas. When agents entered the residence Nguyen and Peddicord ran out of the back door. Agents observed Peddicord throw a plastic baggie containing methamphetamine when he exited the back door of the residence. Both Peddicord and Nguyen were subsequently arrested. Agents also located several baggies of methamphetamine inside the residence and approximately 10 grams of methamphetamine in Nguyen’s front right pants pocket. A drug ledger was located next to baggies of methamphetamine. The net weight of methamphetamine recovered was 171.6 grams.

According to plea documents filed relating to Frost, on May 5, 2015, an Amarillo Police Department officer approached Frost and another individual who were near a vehicle at the Relax Inn. The officer noticed that Frost and the other individual appeared nervous and they were hiding something. The officer asked for consent to search the vehicle. The officer located a pistol inside the vehicle. Inside a hotel room at the Relax Inn, occupied by Frost, officers located a bag with 40.76 grams of methamphetamine on a night stand in plain view. In addition to the methamphetamine, officers located another pistol and a small amount of marijuana in the hotel room.

The case was investigated by the Federal Bureau of Investigation, the Texas Department of Public Safety, the Randall County Sheriff’s Office and the Amarillo Police Department. Assistant U.S. Attorney Joshua Frausto was in charge of the prosecution.

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DALLAS — Christina Renee Caveny, 37, of Dallas, appeared in federal court this morning before U.S. Magistrate Judge Irma Carrillo Ramirez and pleaded guilty to one count of conspiracy to commit mail fraud, announced U.S. Attorney John Parker of the Northern District of Texas.

Caveny faces a maximum statutory penalty of five years in federal prison and a $250,000 fine. Restitution could also be ordered. Caveny will remain on bond pending sentencing, which is set for September 18, 2017.

A federal grand jury in Dallas returned an indictment in December 2016 charging Caveny and three others with felony offenses stemming from a “foreclosure rescue scheme” they ran from approximately February 2012 through January 2013. Mark Demetri Stein, 36, of Carrollton, Texas, and Richard Bruce Stevens, 51, of San Antonio, Texas, are scheduled to begin trial on August 28, 2017. Bruce Kevin Hawkins, 52, of Desoto, Texas, is scheduled to plead guilty on June 20, 2017.

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

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

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

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

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

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

The Dallas FBI investigated the case. Assistant U.S. Attorney David Jarvis is in charge of the prosecution.

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DALLAS — Albert Shih-Der Chang, the former Lead Systems Engineer for a Dallas technology company known as One Technologies, appeared in federal court this morning and pleaded guilty, before U.S. Magistrate Judge Paul D. Stickney, to one count of mail fraud and one count of money laundering. The announcement was made today by U.S. Attorney John Parker of the Northern District of Texas.

Chang, 36, of Fairview, Texas, will remain on bond pending sentencing. The date for the sentencing hearing has not yet been set. Chang faces a maximum statutory penalty of 30 years imprisonment for the mail fraud count and 10 years imprisonment for the money laundering count. Each count provides for the possibility of a fine of up to $250,000. An order of restitution is mandatory under the law, and will be determined at sentencing. The indictment also included a forfeiture allegation that would require the defendant, upon conviction, to forfeit any property that constitutes or was derived from proceeds traceable to the fraud, including his residence in Fairview.

In his Plea Agreement, Chang also agreed to relinquish any ownership interest in property seized from his residence in July 2016, to include several dozen devices such has hard drives, laptops, thumbdrives, servers, and cell phones.

According to the plea documents, from approximately October 4, 2004, through August 15, 2014, Chang worked for One Technologies, initially as its Network/Systems Administrator and later as its Lead Systems Engineer. From approximately July 2008 through August 2014, Chang devised and ran a scheme to defraud One Technologies by causing the company to pay more than $2.4 million as a result of his false and fraudulent pretenses, representations and promises. Chang caused One Technologies to transfer funds, based on material representations, to financial accounts he controlled, and Chang caused One Technologies to purchase products, purportedly for the company’s use, that Chang later converted to his own use.

To carry out his scheme, Chang allegedly created fictitious companies for which he opened bank accounts or PayPal accounts. He rented mailboxes and contracted for virtual offices with mail forwarding services for the fictitious companies. He also created and submitted fictitious purchase requisitions, orders, invoices, and receipts that One Technologies paid.

According to plea documents, Chang acknowledged that the government could prove that he directly caused a loss of at least $2,152,035.60. Also, from approximately April 15, 2013, until May 30, 2013, Chang wired-transferred nearly $300,000 from his joint account at Chase Bank to a title company to purchase a residence on Stone Hinge Drive in Fairview, and that funds transfer involved the proceeds of the fraud.

The FBI was in charge of the investigation and the Fairview Police Department assisted with the arrest. Assistant U.S. Attorney C.S. Heath is in charge of the prosecution.

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DALLAS — Mark Reice Anderson, 62, of Sachse, Texas, was sentenced last week by Chief U.S. District Judge Barbara M.G. Lynn to 96 months in federal prison, following his guilty plea in November 2016 to one count of transportation and shipping child pornography, announced U.S. Attorney John Parker of the Northern District of Texas.

According to documents filed in the case, on October 16, 2015, law enforcement executed a search warrant at the residence of Anderson on Maple Shade Ave., Sachse, Texas. An unusually large number of computers and other digital media were found and seized. A search of the computers and other digital media revealed multiple files depicting child pornography, including over 19,000 images of child pornography and 1,000 videos of child pornography.

The case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood 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 Federal Bureau of Investigation. Assistant U.S. Attorney Shane Read was in charge of the prosecution.

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North Texas Contractor and Executive Agree to Pay United States $2.475 Million to Resolve False Claims Act and Anti-kickback Act Allegations

Mansfield, Texas-based Integrated Medical Solutions Inc. (IMS), along with the company’s former President Jerry Heftler, have agreed to pay the United States $2.475 million to settle allegations that they violated the False Claims Act and Anti-Kickback Act in connection with federal contracts IMS obtained from the U.S. Bureau of Prisons (BOP), the Justice Department announced today.    

“This settlement demonstrates that the Department of Justice is committed to protecting the integrity of the federal contracting process from unscrupulous contractors,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division.  “When government contractors maintain improper financial arrangements with government officials, it has a corrupting influence on contracts funded by taxpayer dollars.” 

“Our office will continue to aggressively investigate federal contracting abuse and will use all available tools to hold accountable those who try to gain an advantage in contracting through improper means,” said U.S. Attorney John R. Parker for the Northern District of Texas.

“Our office is committed to uncovering corruption in the contracting process, particularly when it involves an abuse of trust by the Department of Justice’s own employees,” said Special Agent in Charge Monte A. Cason of the Department of Justice Office of the Inspector General.  “It is imperative that we protect taxpayer funds by ferreting out such abuse.”
         
The settlement announced today resolves allegations that IMS engaged Cary Hudson, who was then employed by BOP as a business administrator, to serve as a paid consultant to assist IMS in obtaining contracts with BOP to serve as a third-party administrator responsible for developing managed healthcare networks that provide medical care to federal inmates. Specifically, the Government alleged that IMS paid Hudson in order to obtain favorable treatment during the contracting process, which included Hudson’s provision of certain confidential, non-public information that gave IMS an unfair competitive advantage in the bidding process.  After IMS obtained the contracts with BOP, the Government alleged that Hudson thereafter improperly assisted IMS in its performance of the contracts while simultaneously serving as a BOP financial administrator.

In October 2014, Hudson pleaded guilty to a felony violation of submitting a false document to an agency of the United States in which he failed to disclose payments he received from IMS as part of his annual obligation as a federal government employee to report any potential conflicts of interests.

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

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

WASHINGTON – Mansfield, Texas-based Integrated Medical Solutions Inc. (IMS), along with the company’s former President Jerry Heftler, have agreed to pay the United States $2.475 million to settle allegations that they violated the False Claims Act and Anti-Kickback Act in connection with federal contracts IMS obtained from the U.S. Bureau of Prisons (BOP), the Justice Department announced today.

“This settlement demonstrates that the Department of Justice is committed to protecting the integrity of the federal contracting process from unscrupulous contractors,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “When government contractors maintain improper financial arrangements with government officials, it has a corrupting influence on contracts funded by taxpayer dollars.”

“Our office will continue to aggressively investigate federal contracting abuse and will use all available tools to hold accountable those who try to gain an advantage in contracting through improper means,” said U.S. Attorney John R. Parker for the Northern District of Texas.

“Our office is committed to uncovering corruption in the contracting process, particularly when it involves an abuse of trust by the Department of Justice’s own employees,” said Special Agent in Charge Monte A. Cason of the Department of Justice Office of the Inspector General. “It is imperative that we protect taxpayer funds by ferreting out such abuse.”

The settlement announced today resolves allegations that IMS engaged Cary Hudson, who was then employed by BOP as a business administrator, to serve as a paid consultant to assist IMS in obtaining contracts with BOP to serve as a third-party administrator responsible for developing managed healthcare networks that provide medical care to federal inmates. Specifically, the Government alleged that IMS paid Hudson in order to obtain favorable treatment during the contracting process, which included Hudson’s provision of certain confidential, non-public information that gave IMS an unfair competitive advantage in the bidding process. After IMS obtained the contracts with BOP, the Government alleged that Hudson thereafter improperly assisted IMS in its performance of the contracts while simultaneously serving as a BOP financial administrator.

In October 2014, Hudson pleaded guilty to a felony violation of submitting a false document to an agency of the United States in which he failed to disclose payments he received from IMS as part of his annual obligation as a federal government employee to report any potential conflicts of interests.

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

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

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DALLAS — Rolando Benitez, aka “San Luis,” 35, arrested in July 2015 following a law enforcement operation that was led by the FBI, the Dallas Police Department and the Internal Revenue Service Criminal Investigation, has been sentenced, announced U.S. Attorney John Parker of the Northern District of Texas.

Last week, Benitez was sentenced by U.S. District Judge Jane J. Boyle to 245 months in federal prison. Benitez pleaded guilty to one count of conspiracy to possess with intent to distribute and to distribute a schedule I controlled substance in October 2016.

According to documents filed in the case, beginning on October 29, 2014 and continuing through February 2, 2015, Benitez and others possessed with intent to distribute 100 grams or more of a mixture or substance containing a detectable amount of heroin.

The FBI, Dallas Police Department, and Internal Revenue Service Criminal Investigation led the investigation with assistance from the Texas Department of Public Safety; the DFW Department of Public Safety; the U.S. Department of State; the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Transportation Security Administration; the U.S. Secret Service; U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations; and the Fort Worth, McKinney, Mesquite, and Plano Police Departments.

Assistant U.S. Attorney George Leal prosecuted.

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FORT WORTH — Four Fort Worth bank robbers were sentenced Friday by U.S. District Judge John McBryde for their roles in the November 3, 2016 robbery of a Woodhaven National Bank. The announcement was made today by U.S. Attorney John Parker of the Northern District of Texas.

Judge McBryde sentenced Tony Kalumba Tshiansi, 22, to 180 months in federal prison, Justin Corie Murry, 20, to 70 months in federal prison, Tremain Keyon Smith, 22, to 37 months in federal prison, and Nykesciah Danielle Williams, 25, to 37 months in federal prison.

According to documents filed in the case, on November 3, 2016, Williams drove the four defendants to the Woodhaven National Bank located at 6301 North Beach Street, Fort Worth, Texas. Tshiansi advised of the best parking location to avoid detection and entered the bank with Murray. Murray presented a bank robbery note to a bank teller while the others waited. After the bank teller provided money the defendants fled the bank. As they fled the bank, a dye pack contained in the money exploded, rendering most of the money unusable.

The Federal Bureau of Investigation and the Fort Worth Police Department investigated. Special Assistant U.S. Attorney Dan Cole prosecuted.

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DALLAS — Bertha Alicia Garcia, 50, of Channelview, Texas, who pleaded guilty to her role in a pill mill operation that operated during parts of 2013-2015, has been sentenced, announced United States Attorney John R. Parker.

Garcia was sentenced last week to 37 months in federal prison by U.S. District Judge Sidney A. Fitzwater, following her guilty plea in October 2016 to one count of conspiracy to distribute a controlled substance, namely Oxycodone. Judge Fitzwater ordered Garcia to surrender to the Bureau of Prisons on July 18, 2017.

In March 2015, a federal grand jury in Dallas indicted 23 individuals, including Garcia, on offenses related to their participation in a prescription drug distribution conspiracy. In 2016, an additional 7 individuals were charged in superseding indictments. That indictment alleged that from at least May 2013 through July 2014, the defendants participated in a scheme to illicitly obtain prescriptions for pain medications, such as oxycodone and hydrocodone, and then distribute those controlled substances for profit. As part of the conspiracy, individuals, often homeless or of limited means, were recruited and paid to pose as patients at medical clinics, including the McAllen Medical Clinic in Dallas, to obtain prescriptions to fill those prescriptions at designated pharmacies.

According to documents filed in the case, on August 8, 2013, Garcia and another co-conspirator met with a law enforcement officer acting in an undercover capacity at ABS Medical and Chiropractic clinic on Avenue C in Channelview, Texas. The undercover officer indicated that he wanted to obtain 30mg oxycodone pills and paid the clinic $420 in cash but never met with a medical practitioner and did not have a medical examination. Later the same day, Garcia met the officer at a gas station in Jacinto City, Texas, and delivered a prescription for 90 10mg oxycodone pills. Garcia has never been a licensed medical practitioner, has never held a DEA registration number, and has never been authorized to distribute or dispense oxycodone, a Schedule II controlled substance.

The investigation was conducted by the Drug Enforcement Administration, with assistance from the Internal Revenue Service, Texas Department of Public Safety, the Louisiana State Police, the Grand Prairie Police Department, the Dallas Police Department, the Houston Police Department, the Arlington Police Department, the Greenville Police Department, the Parker County Sheriff’s Office, the U.S. Marshal’s Service, the U.S. Postal Inspection Service, and the Diplomatic Security Service. Assistant U.S. Attorney Mary Walters prosecuted.

# # #

AMARILLO, Texas — Three defendants in two separate cases were sentenced today before U.S. District Judge Sidney Fitzwater for various methamphetamine distribution offenses. U.S. Attorney John Parker of the Northern District of Texas made the announcement.

Judge Fitzwater sentenced Colleen Mossberger, 48, of Joliet, Illinois, to 120 months in federal prison following her guilty plea in February 2017 to one count of possession with intent to distribute 500 grams or more of methamphetamine. Mossberger has been in custody since the time of her arrest in September 2016.

According to documents filed in Mossberger’s case, on September 13, 2016, two Potter County deputies were working routine patrol on Interstate 40, in Potter County, Texas. The deputies stopped a vehicle for driving in the left lane not passing. The vehicle was occupied by Mossberger and a passenger. Mossberger and the passenger provided conflicting stories about their travels. A search of the vehicle revealed 1,316.7 grams of methamphetamine.

The Drug Enforcement Administration and the Potter County Sheriff’s Office investigated the case.

Oscar Martin Cota, 25, of San Diego, California, was sentenced to 70 months in federal prison following his guilty plea in February 2017 to one count of possession with intent to distribute 500 grams or more of methamphetamine. Co-defendant Edgar Isaac Castaneda Cota, 25, a citizen of Mexico, was sentenced to 46 months in federal prison following his guilty plea also in February 2017 to the same offense. Both defendants have been in custody since their arrests in December 2016. Castaneda will be deported after serving his sentence.

According to documents filed in the case, on December 10, 2016, a Texas Department of Public Safety (DPS) trooper was working routine patrol on Interstate 40 in Carson County, Texas. The DPS trooper stopped a vehicle for speeding over the limit and the passenger not wearing a seatbelt. The vehicle was occupied by Cota and Castaneda. While speaking with Castaneda and Cota, the trooper noticed several indicators of possible criminal activity. A search of the vehicle revealed 6,698.9 grams of methamphetamine in the passenger side quarter panel. Cota and Castaneda were transporting the methamphetamine from California to Oklahoma in exchange for $1,500 each.

The Texas Department of Public Safety and the Drug Enforcement Administration investigated the case.

Assistant U.S. Attorney Joshua Frausto prosecuted the cases.

# # #

AMARILLO, Texas — James Kenny Crawley, 60, of Amarillo, Texas, was sentenced today before U.S. District Judge Sidney A. Fitzwater to 97 months in federal prison following his guilty plea in February 2017 to one count of possession of prepubescent child pornography, announced John Parker, U.S. Attorney for the Northern District of Texas.

Crawley was ordered to surrender to the Bureau of Prison on July 18, 2017.

According to documents filed in the case, Crawley used a laptop computer at his residence to search the Internet for images and videos of child pornography. In the course of searching for this material, Crawley located, downloaded and viewed approximately 5,000 images and over 100 videos constituting child pornography, and some of those images involved prepubescent minors engaging 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 Ochiltree County Sheriff’s Office, Texas Rangers and Federal Bureau of Investigation investigated the case. Assistant U.S. Attorney Joshua Frausto prosecuted.

# # #

WICHITA FALLS, Texas — Chad Allen Lawson, 34, of Vernon, Texas, was sentenced yesterday by U.S. District Judge Reed C. O’Connor to 144 months in federal prison for possessing with the intent to distribute methamphetamine, announced U.S. Attorney John Parker of the Northern District of Texas.

Lawson pleaded guilty to one count of possession with intent to distribute five grams or more of methamphetamine. Lawson has been in custody since his arrest in December 2016.

According to documents filed in the case, on August 21, 2016, Lawson fled from a Saint Jo Police Department officer who was trying to initiate a traffic stop on the vehicle Lawson was driving. After a lengthy chase, a Texas Department of Public Safety trooper located Lawson’s car in the Bellevue, Texas, area. The trooper then located Lawson hiding behind the Triangle Brick Factory in Henrietta, Texas. When apprehended, Lawson was holding a container that contained a small plastic bag. Upon searching the container, the trooper located 186.87 grams of methamphetamine.

The Texas Department of Public Safety and the Saint Jo Police Department investigated. Assistant U.S. Attorney Mary Walters prosecuted the case.

# # #

WICHITA FALLS, Texas — Jackie Eugene Clayton, 38, Juan Carlos Lopez, 53, and Rudy Roman Ramirez, 45, were sentenced yesterday by U.S. District Judge Reed C. O’Connor following their guilty pleas in February 2017 to one count of conspiracy to distribute five grams or more of methamphetamine, announced U.S. Attorney John Parker of the Northern District of Texas.

Judge O’Connor sentenced Clayton to 235 months in federal prison, Lopez to 100 months in federal prison and Ramirez to 135 months in federal prison.

Co-defendant Juan Leonardo Tello will be sentenced on June 26, 2017.

According to documents filed in the case, from December 2014 through December 3, 2015, Clayton on multiple occasions distributed varied quantities of methamphetamine to Ramirez and Lopez. Clayton, who lived in Dallas, Texas, during the conspiracy, distributed quantities of methamphetamine to numerous customers from Wichita Falls, including Ramirez and Lopez. Clayton’s Wichita Falls customers usually travelled to Dallas to obtain methamphetamine. Those customers then returned to Wichita Falls to distribute the methamphetamine to their own customers. The quantities that Clayton distributed varied from one ounce to several ounces of methamphetamine worth several thousand dollars.

Ramirez also obtained larger quantities of methamphetamine from co-conspirator Tello, who lived in Dallas. Ramirez picked up methamphetamine from Tello directly and sent Lopez to pick up methamphetamine and transport it back to Wichita Falls for distribution. Ramirez paid Tello in cash and via wire transfers. More than $75,000 in drug proceeds have been identified.

The case was investigated by the Texas Department of Public Safety, the Wichita County District Attorney’s Office, and the Bureau of Alcohol, Tobacco and Firearms. Assistant U.S. Attorney Mary Walters was in charge of the prosecution.

# # #

LUBBOCK, Texas — Juan Carlos Marin-Cardona, 47, a citizen and national of Columbia, appeared in federal court today and pleaded guilty, before U.S. Magistrate Judge E. Scott Frost, to escaping from federal custody in 1994, announced U.S Attorney John Parker of the Northern District of Texas.

Marin-Cardona, who has been in custody since his arrest in April 2017, faces a statutory penalty of not more than 5 years in federal prison and a $5,000 fine. His sentencing will be set at a later date.

According to plea documents filed in the case, on January 22, 1993, the United States District Court for the Southern District of Florida sentenced Juan Carlos Marin-Cardona to 70 months imprisonment for the felony offenses of importation of cocaine and possession with intent to distribute cocaine. Marin-Cardona was later transferred to federal custody at the Eden Detention Center in Eden, Texas.

On November 3, 1994, an Eden maintenance officer went to retrieve Marin-Cardona from the front of the institution but Marin-Cardona wasn’t there. The Eden Detention Center initiated a lockdown and emergency headcount. It was confirmed that Marin-Cardona was not in the Eden Detention Center and had left federal custody without permission. Marin-Cardona was placed on escape status.

Through a diligent investigation by the United States Marshals Service (USMS), deputies located Marin-Cardona living in a foreign county under the name Alexander Rey Marin Cardona. In March 2017, USMS deputies were ultimately able to apprehend Marin-Cardona in Houston, Texas, at the airport.

The United States Marshal Service and the U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated the case. Assistant U.S. Attorney Jeffrey Haag is in charge of the prosecution.

# # #

DALLAS — A Houston man, Christopher Arnold Jiongo, appeared this morning before U.S. Magistrate Judge Paul D Stickney and pleaded guilty to one count of wire fraud, announced U.S. Attorney John Parker of the Northern District of Texas.

Jiongo, 55, faces a maximum statutory penalty of twenty years in federal prison and a $250,000 fine. He will remain on bond pending sentencing, which is set for September 11, 2017, before U.S. District Judge David C. Godbey.

Co-defendants Craig Allen Otteson, 64, of McKinney and Jay Bruce Heimburger, 58, of Dallas, are scheduled for trial July 17, 2017.

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

During the summer of 2011 through November 2011, Jiongo drafted $50,000 diamond notes which were later used as investment vehicles to generate investment funds. Jiongo, Otteson and Heimburger represented that all investment funds would be used to buy and resell diamonds and that every dollar invested would always be fully secured by the cash and diamond inventory of Worldwide Diamond. Sometime in the summer of 2011, Jiongo, Otteson and Heimburger realized that the original business plan was not working out as planned and that the defendants therefore could not honor the original promises and representations made to investors. Jiongo, Otteson, and Heimburger then engaged in a scheme to defraud investors by fraudulently concealing from investors that investor funds were being used for unauthorized purposes unrelated to the purchase and resale of diamonds. These unauthorized purposes included making several loans totaling approximately $2.4 million to third parties and to Global Reach Industries Limited for purposes not disclosed to or authorized by the investors. Jiongo, Otteson and Heimburger also fraudulently concealed from Worldwide Diamond investors that defendants planned to make an unauthorized $1 million loan of investor funds to Global Reach Industries Limited, a company established and controlled by defendant Jiongo.

During July 2011, Jiongo, Otteson and Heimburger all agreed to fraudulently wire transfer $400,000 of investor funds into several bank accounts designated by Jiongo. In August 2011, all three defendants agreed that defendant Jiongo would cause another $600,000 of investor funds to be wire transferred directly into a trust account controlled by Jiongo.

As a result of this scheme to defraud during the period from about 2011 through 2012, documents reflect that millions of dollars were fraudulently collected from Worldwide Diamond investors.

This case is one of several felony prosecutions of bankruptcy-related crimes generated by the Bankruptcy Fraud Initiative in the Northern District of Texas. Of the 26 defendants charged as part of that initiative - 17 have been convicted, 1 resulted in a mistrial and 8 are pending trial.

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

# # #

DALLAS — David Delgado, 35, of Dallas, appeared in federal court this morning and pleaded guilty, before U.S. Magistrate Judge Irma Carrillo Ramirez, to one count of use of interstate facility to commit travel act. U.S. Attorney John Parker of the Northern District of Texas made today’s announcement.

Delgado faces a maximum statutory penalty of five years in federal prison and a $250,000 fine. Sentencing is set for September 14, 2017.

According to documents filed in the case, from November 26, 2015 and continuing to May 31, 2016, Delgado was employed as a Dallas County Community Supervision officer (DCCSO). His job involved the monitoring, counseling, and developing and implementing supervision plans for, among others, adult Spanish-speaking individuals who were on court-ordered probation.

During this time period, Delgado supervised an individual who had no legal status in the United States and who was on probation for a Dallas County offense. Delgado called the probationer into his office and told him/her that he/she still had community service to complete and fees to pay as a condition of his/her probation. The probationer knew that Delgado’s request was not correct because he/she had receipts showing his/her status was current on payments and community supervision hours, and that no more monies were owed. Just prior to their last in-person meeting, Delgado told the probationer that he/she had to come up with another $1,600 within eight days or he/she would have to perform additional community service. Delgado explained the $1,600 would be divided between two others who were supposed to help Delgado waive/prevent the imposition of additional community service hours. The probationer believed that paying Delgado would prevent additional charges against him/her and felt obligated to do so since Delgado was in a position of authority as his/her DCCSO. Thereafter, on a Saturday prior to June 2016, Delgado placed a call to the probationer and arranged a meeting at a Dallas restaurant to collect the bribe payment. During the call, the probationer asked Delgado if he/she could pay half of the $1,600 at the meeting and the other half later. Delgado told the probationer that he needed all of the money at once because he just could not pay one person and not the other that were going assist. Delgado further explained that to pay in full was for the probationer’s benefit and would help keep immigration officials away. Delgado warned the probationer that one of his other probationers was picked up by Immigration officials and deported, and that the probationer needed to stay straight. Delgado and the probationer met as planned and Delgado was paid $1,600.

In addition to the $1,600 Delgado received described above, Delgado also received a total of approximately $1,300 from three other probationers he supervised.

The Federal Bureau of Investigation, Texas Rangers, and the Dallas County Sheriff’s Office are in charge of the investigation. Assistant U.S. Attorneys John Kull and Kate Rumsey are in charge of the prosecution.

# # #

DALLAS — U.S. District Judge Sidney A. Fitzwater sentenced three defendants, including a doctor, a pharmacist, and the owner of McAllen Medical Clinic, today for their involvement in a “pill mill” operation, announced U.S. Attorney John Parker of the Northern District of Texas.

Muhammad Faridi, 41, of Murphy, was sentenced to 108 months in federal prison following his guilty plea in August 2016 to one count of conspiracy to launder monetary instruments.

Dr. Richard Andrews, 64, of Dallas, was sentenced to 96 months in federal prison following his guilty pleas in January 2017 to one count of conspiracy to distribute a controlled substance, namely, Oxycodone, and one count of conspiracy to launder monetary instruments.

Ndufola Kigham, 45, of Arlington, was sentenced to 27 months in federal prison following her guilty pleas in February 2017 to two counts of misprision of felony.

“These diverted prescription pain pills kill more people in this country than heroin, while simultaneously fueling demand for heroin itself,” said U.S. Attorney Parker. “Eighty percent of heroin users started down that dark, steep path by abusing prescription pain pills first. Those who divert legitimate drugs from their lawful, therapeutic purposes to illicit, deadly purposes all in the name of money are no better than any other drug trafficker and will be treated accordingly.”

According to documents filed in the case, from approximately January 2013 through July 2014, Andrews, a doctor of osteopathy, and his co-conspirators, including Faridi, who is not a physician but who owned the McAllen Medical Clinic, distributed and caused to be distributed at least 150,000 30mg oxycodone pills in Dallas. The prescriptions were issued in Andrews’ name and under his DEA registration number. Andrews wrote or signed prescriptions for 30mg oxycodone pills without conducting medical exams of patients, without determining there was a legitimate medical purpose for the prescription, and outside the usual course of professional practice. Sometimes Faridi filled out the prescriptions Andrews had previously signed. Andrews and his coconspirators issued the illegitimate prescriptions to make money.

The proceeds of the drug-trafficking conspiracy consisted of cash payments collected by Faridi and other coconspirators at McAllen Medical Clinic for fake patient visits. Those payments varied per patient, per visit, and were payable only in cash. Andrews received a share of those cash payments

Co-defendant Kigham, a registered pharmacist who owned, operated, and served as the pharmacist in charge of GenPharm Pharmacy on Wheatland Road in Desoto, Texas, knew of the conspiracy and failed to notify any authority of it. Instead, she committed affirmative acts to conceal the conspiracy, such as filling prescriptions for 30mg oxycodone written for multiple different individuals and dispensing the filled prescriptions to a single individual, and not to the individuals named on the prescription. By filling these prescriptions while the conspiracy was ongoing, Kigham dispensed more than 70,000 30mg oxycodone pills based on illegitimate prescriptions.

In March 2015, a federal grand jury in Dallas indicted 23 individuals on offenses related to a prescription drug distribution conspiracy. Andrews, Kigham and Faridi were charged in December 2015 by a superseding indictment. The indictment alleged that from at least May 2013 through July 2014, the defendants participated in a scheme to illicitly obtain prescriptions for pain medications, such as oxycodone and hydrocodone, and then distribute those controlled substances for profit. As part of the conspiracy, individuals, often homeless or of limited means, were recruited and paid to pose as patients at medical clinics, including the McAllen Medical Clinic in Dallas, to obtain prescriptions and to fill those prescriptions at designated pharmacies.

The prescription medications were then distributed like street drugs in Texas and Louisiana.

This Organized Crime Drug Enforcement Task Force (OCDETF) was investigated by the Drug Enforcement Administration and the Internal Revenue Service Criminal Investigation, with assistance from the Texas Department of Public Safety, the Louisiana State Police, the Grand Prairie Police Department, the Dallas Police Department, the Houston Police Department, the Arlington Police Department, the Greenville Police Department, the Parker County Sheriff’s Office, the U.S. Marshal’s Service, the U.S. Postal Inspection Service, and the Diplomatic Security Service. Assistant U.S. Attorney Mary Walters prosecuted.

# # #

LUBBOCK, Texas — Victor Manuel Castillo, aka “Victor Manuel Garza,” 44, was sentenced today by Senior U.S. District Judge Sam R. Cummings to 188 months in federal prison for his role in a methamphetamine, cocaine and marijuana distribution conspiracy, announced U.S. Attorney John Parker of the Northern District of Texas.

Castillo pleaded guilty in January 2017 to one count of distribution and possession with intent to distribute 50 grams or more of Methamphetamine. Castillo has been in custody since his arrest in June 2016.

Castillo and twelve other West Texas residents, including three other members of the Texas Syndicate, were arrested in early June 2016 by special agents with the Drug Enforcement Administration (DEA) and the Texas Department of Public Safety, with assistance from the Big Spring, Sundown and Levelland Police Departments, the Howard County and Lubbock County Sheriff’s Offices, the U.S. Marshals Service, and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).

All defendants have been sentenced for their roles in the conspiracy to the following:

Cruz Perez, aka “Travieso,” 41, 327 months

Christopher Lee Gonzalez, aka “Gonzo,” 44, 327 months

Evan Cruz Parson, aka “Evan,” 22, 168 months

Jose Gutierrez, III, aka “Baby Joey,” 22, 151 months
Christopher David Gonzales, aka “Chris,” 42, 121 months
Jasmine Pillar Hernandez, aka “Crazy,” 33, 120 months
Alexander Alfonzo Mendoza, aka “Alex,” 21, 48 months
Robert Diaz, Jr., aka “Bobby,” 34, 48 months

Adrian Rodriguez, 38, 48 months

Johnny Trevino, Jr., aka “Baby John,” 27, 48 months

Crystal Dimas, aka “Babe,” 29, 33 months

The Texas Department of Public Safety and the DEA investigated. Assistant U.S. Attorneys Juanita Fielden and Sean Long prosecuted.

# # #

LUBBOCK, Texas — Rene Ortiz, of Lubbock, was sentenced today by Senior U.S. District Judge Sam R. Cummings to 200 months in federal prison on a methamphetamine distribution conviction, announced John Parker, U.S. Attorney for the Northern District of Texas.

Ortiz, 42, pleaded guilty in February 2017 to an indictment charging one count of possession with intent to distribute 50 grams or more of methamphetamine. He has been in custody since December 2016, after the return of that indictment.

Co-defendant Michael Sebastion Ford, 24, also of Lubbock, pleaded guilty in February 2017 to the same offense and is scheduled to be sentenced June 9, 2017.

According to documents filed in the case, on October 25, 2016, officers with the Lubbock County Sheriff’s Office, operating in an undercover capacity, called Ford and reached an agreement for Ford to sell the officers two ounces of methamphetamine for $1,300. The deal was scheduled to take place on October 26, 2016 at a residence located in Lubbock. The undercover officer arrived at the location and spoke with Ford who told the officer that his cousin would be bringing the methamphetamine later on. The undercover officer left the residence and told Ford to notify him when the drugs had arrived. Ford texted the officer a few moments later to tell the officer that the drugs had arrived at the residence. During this time, officers observed a vehicle arrive at the residence and saw Ford approach the front passenger side of the vehicle and talk to the driver. As officers approached the residence, Ford saw them and ducked down next to the vehicle before running into the residence where he was then arrested. Officers approached the vehicle and identified the driver as Ortiz. As Ortiz exited the vehicle, officers observed a bag containing approximately 10 grams of methamphetamine on the driver side floor mat. Officers also found a torn baggie underneath the vehicle that contained approximately 26 grams of methamphetamine and found another 30.4 grams of methamphetamine behind the driver seat. A pistol and ammunition were also found in a shoe box in the back of the vehicle.

An additional 880 grams of methamphetamine was located in the hotel room where Ortiz had been staying.

The Lubbock County Sheriff’s Office and U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated. Assistant U.S. Attorney Sean Long prosecuted.

# # #

LUBBOCK — An investigation into a large scale drug trafficking organization in Hockley and Cochran County, Texas has resulted in federal drug distribution conspiracy charges against seven defendants who are charged in two federal indictments that were returned last week by a grand jury in Lubbock, announced U.S. Attorney John Parker of the Northern District of Texas.

Six of the seven charged defendants were arrested early Tuesday morning in an operation led by the Texas Department of Public Safety, the Drug Enforcement Administration, the Levelland, Texas Police Department, the Cochran County Sheriff’s Office, U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), U.S. Customs and Border Protection, as well as the New Mexico State Police Tactical Team, Roosevelt County, New Mexico Sheriff’s Office, and the Region V Metro Drug Task Force, based in New Mexico. Most of the defendants were arrested in the Northern District of Texas and have made their initial appearances before U.S. Magistrate Judge D. Gordon Bryant, Jr. Each was detained pending hearings set in the following weeks. Leopoldo Herrera-Gandara was arrested in the District of New Mexico where he has made his initial appearance and awaits transfer to the Northern District of Texas. Johnathan Navarrette Garza remains in custody in Cochran County on unrelated State charges.

The defendants charged in the two indictments unsealed today include:

     Leopoldo Herrera-Gandara, aka “Polo,” 33, of Arch, New Mexico

     Raul Jose Hernandez, aka “RJ,” 35, of Morton, Texas

     Johnathan Navarrette Garza, aka “Johnny,” 27, of Morton, Texas

     Elias Avitia, aka “Mole,” 20, of Morton, Texas

     Arcadio Ornelas, Jr., aka “Junior,” 36, of Morton, Texas

Each of these defendants is charged with one count of conspiracy to distribute and possess with intent to distribute methamphetamine. Hernandez, Avitia, and Ornelas are also charged with one count each of possession with intent to distribute five grams or more of methamphetamine. Garza is charged in two additional counts, one count of distribution and possession with intent to distribute methamphetamine and one count of possession with intent to distribute 50 grams or more of methamphetamine. Gandara is also charged with three counts of possession with intent to distribute 50 grams or more of methamphetamine.

     Jorge Andres Nunez-Saenz, aka “Tucan,” 51, of Levelland, Texas

     Nancy Cecilia Martinez, 37, of Levelland, Texas

Nunez-Saenz and Martinez are each charged in a four-count indictment with one count of conspiracy to possess with the intent to distribute methamphetamine and two counts each of distribution and possession with intent to distribute 50 grams or more of methamphetamine.

A federal indictment is an accusation by a grand jury. A defendant is entitled to the presumption of innocence unless proven guilty. The conspiracy charges contained in both indictments carry different penalties based on the amount of controlled substance attributable to each defendant, with the greater amounts carrying a maximum statutory penalty of life in federal prison and a $10 million fine, upon conviction.

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

# # #

DALLAS — Edgar Fallad-Martinez, 29, of Dallas, was sentenced today before Chief U.S. District Judge Barbara M.G. Lynn for his role in a methamphetamine distribution conspiracy, announced U.S. Attorney John Parker of the Northern District of Texas.

Fallad-Martinez was sentenced to 168 months in federal prison. Fallad-Martinez pleaded guilty in August 2016 to one count of possession with intent to distribute a controlled substance.

Fallad-Martinez and eighteen co-defendants were charged in a 12-count indictment charging each defendant with one count of conspiracy to possess with intent to distribute 500 grams or more of methamphetamine. All but three of the defendants are also charged with one substantive count of either distribution of methamphetamine or possession with intent to distribute methamphetamine. Two defendants are charged with a firearms offense.

Thirteen of the eighteen defendants have been sentenced. The remaining five defendants will be sentenced in early June.

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 6,700 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.

# # #

FORT WORTH — Following a three-day jury trial before U.S. District Judge Reed C. O’Connor, a federal jury has convicted Marquis Konrad Streaty, 32, of Arlington, Texas, of the attempted enticement of an individual Streaty believed to be a 13-year-old female, announced U.S. Attorney John Parker of the Northern District of Texas.

Streaty was convicted yesterday on one count of enticement of a child. The offense carries a penalty of not less than 10 years and up to life in federal prison. Sentencing is set for September 5, 2017.

The government presented evidence at trial that on March 2, 2017, through March 9, 2017, Streaty attempted to persuade, induce, and entice a person who had not attained the age of eighteen years, to engage in sexual activity.

On March 2, 2017, Streaty posted an advertisement to an Internet message board website in a section that is commonly used to solicit sexual activity. Part of the advertisement stated, “Just a VERY, VERY discreet early 30’s attractive black male here just looking for a family with a kinky side.” A law enforcement special agent working in an undercover capacity replied to the message asking if Streaty “had any hangups with age.” The agent also stated “Ive got a stepdaughter who likes to play and might be up for a new friend.” Streaty replied “No I don't have any hung ups on age” and “I am interested.” The agent proceeds to tell Streaty “And she is 13, so I get it if that’s too young for you.” Streaty replied, “I am interested in meeting her and you.”

The undercover agent and Streaty continued to email and eventually begin to communicate via text messages. In these communications they discussed meeting during the purported minor’s spring break from school, what kind of sexually explicit acts would take place and the purported minor’s sexual preferences. In a later communication Streaty and the purported stepfather agreed to meet at a Inn and Suites located along Interstate 30 in Fort Worth, Texas. Streaty also agreed to split the cost of the hotel room with the stepfather.

On March 9, 2017 Streaty traveled from his residence in Arlington, Texas, to the Inn and Suites hotel in Fort Worth, Texas. Upon Streaty’s arrival at the hotel, Streaty was intercepted by law enforcement and placed under arrest.

The U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), with assistance from the Tarrant County Criminal District’s Office, Digital Forensic and Technical Services Division, investigated the case. Assistant U.S. Attorneys Nancy Larson and Megan Fahey prosecuted.

# # #

DALLAS — Mark Isaac Yetter, 34, of Garland, Texas, was sentenced today by Chief U.S. District Judge Barbara M.G. Lynn to serve a total of 13 years in federal prison, following his guilty plea in June 2016 to one count of transporting and shipping of child pornography, announced U.S. Attorney John Parker of the Northern District of Texas.

Yetter has been in custody since his arrest in January 2016.

According to the factual resume filed in the case, Yetter admitted to looking at child pornography for approximately one-and-a-half years. He preferred pornography involving girls between the ages of 12 and 16. Yetter would search the internet using search terms such as “teens” and “young girls,” and would save the images of child pornography to his cellular telephone. Yetter possessed approximately 1,277 images of child pornography and 115 videos of child pornography between his cellular telephone and Dropbox account. Some of the files he collected depict infants and toddlers.

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.”

The Federal Bureau of Investigation conducted the investigation. Assistant U.S. Attorney Andrew Wirmani prosecuted the case.

# # #

DALLAS — Victor Leos, 63, of Garland, Texas, appeared in federal court this morning before U.S. Magistrate Judge David L. Horan and pleaded guilty to one count of conspiracy to commit false statements in connection with immigration documents, announced U.S. Attorney John Parker of the Northern District of Texas.

Leos faces a maximum penalty of five years in federal prison and a $250,000 fine. Sentencing is set for August 28, 2017.

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 benefited 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.

Specifically, from August 27, 2012 to December 6, 2012, Leos signed and filed for GISD thirty-eight Form 9089s 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 job­-related 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 is in charge of the prosecution, which was assisted by Assistant U.S. Attorney John Kull.

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Although I am disappointed in the outcome of this case, my responsibility is larger than the consideration of my subjective views. I must objectively consider the totality of circumstances that the prosecution now faces. Having painstakingly done so, it is my considered judgment that pursuing another trial against Mr. Price will not serve the interests of justice. I have concluded the same is true regarding the pending trial against Ms. Nealy.

My decision today is fundamentally different than the initial decision to seek this indictment and in no way reflects on the soundness of that earlier decision. I have information available to me now that was not available at the time of the indictment and could only be obtained through the trial process. This additional information compels the conclusion that the reasonable, good-faith beliefs we had at the time of indictment regarding our chances for success at trial have been substantially diminished.

The evidence and facts as known at the time of indictment demanded that this office pursue this case. However, while it is our responsibility to seek justice when presented with such evidence, it is never our responsibility to secure a conviction at all costs.

I am extremely proud of the dedicated prosecutors and agents who worked tirelessly on these matters for many years. These public servants discharged their duties with the utmost integrity and never shrunk from the challenges inherent in what everyone knew was going to be a difficult and polarizing trial.

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DALLAS — Dominique Pearson, 25, of Houston, Texas was sentenced yesterday by U.S. District Judge Ed Kinkeade to serve a total of 120 months in federal prison, following his guilty plea in October 2016 to his role in the conspiracy to rob Tilak Jewelers in Irving, announced U.S. Attorney John Parker of the Northern District of Texas.

Pearson pleaded guilty to one count of conspiracy to interfere with commerce by robbery and one count of using, carrying, and brandishing a firearm during and in relation to, and possessing and brandishing a firearm in furtherance of, a crime of violence. Pearson has been in custody since his arrest in December 2015.

Pearson was charged along with eleven other individuals in an indictment in February 2016. Afraybeom Traverom Jackson, 27, Joshua Deunte Caldwell, 26, Hilton Murdock Aitch, 56, Irving Tyrone Flanagan, 47, Larry Solomon, 42, Terrence Lynn Thompson, 53, Anthony Ray Turner, Jr, 25, Treveon Dominique Anderson, 26, Michael Cornelious, 27, Xavier Rashad Ross, 25, and Vanlisa Scott, 47, were each charged with one count of one count of conspiracy to interfere with commerce by robbery and one count of using, carrying, and brandishing a firearm during and in relation to, and possessing and brandishing a firearm in furtherance of, a crime of violence. Out of the twelve, nine have pleaded guilty, two are set for trial in January 2018, and one has not made an appearance in the Northern District of Texas.

According to plea documents filed in the case, in the early morning hours on November 17, 2013, Aitch, Jackson, Caldwell, Pearson, Flanagan, Solomon, Aitch, Thompson, Turner, Anderson, Cornelious, and Ross, traveled from Houston, Texas, to the Dallas, Texas, area with the specific intent to rob the Tilak Jewelers store located at 8300 North MacArthur Boulevard, Suite 100, Irving, Texas. They stole a cargo van and a minivan after they arrived in the Dallas, Texas, area in order to avoid detection and apprehension by law enforcement.

Jackson, Caldwell, Pearson, Turner, Anderson, and Ross drove together in the stolen cargo van to the Tilak Jewelers store, with the specific intent to commit the robbery. Aitch, Flanagan, and Thompson participated in planning the robbery and positioned themselves outside the Tilak Jewelers store, but maintained communications with Jackson for the purpose of monitoring the robbery and alerting the participants of the presence of law enforcement.

Prior to entering the Tilak Jewelers store, Jackson, Caldwell, Pearson, Turner, Anderson, and Ross disguised their identities by wearing long­sleeved clothing, long pants, gloves, and items covering their faces. Jackson and the others entered the jewelry store by smashing the locked glass door with a hammer. After gaining entry into the store, they restrained the owners of the jewelry store with zip-ties, smashed jewelry display cases, and took jewelry from the owners and employees of Tilak Jewelers.

After securing the jewelry, Jackson, Caldwell, Pearson, Turner, Anderson, and Ross fled from the robbery using the stolen cargo van. They abandoned the cargo van at a predetermined location, where Solomon was waiting in the stolen minivan. Solomon then drove them to a second predetermined location, where Cornelious was waiting in a switch vehicle. Cornelious then used the switch vehicle to further facilitate their flight from the robbery and avoid detection and apprehension by law enforcement. Scott, who had traveled from Houston, met Pearson and the other co­conspirators at a different location and took possession of the stolen jewelry for the purpose of safely transporting it to Houston, Texas.

The Irving Police Department, Houston Police Department, and the Federal Bureau of Investigation investigated the case. Assistant U.S. Attorney Keith Robinson was in charge of the prosecution.

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DALLAS — Mitchell Weston Miller, 23, of Kaufman, Texas, was sentenced today by U.S. District Judge David C. Godbey to serve a total of 84 months in federal prison, following his guilty plea to one count of transporting and shipping child pornography, announced U.S. Attorney John Parker of the Northern District of Texas.

Miller has been in custody since his arrest in August 2016.

According to the factual resume filed in the case, on November 23, 2015, Miller used his email account and the Internet to send and transmit files of minors engaged in sexually explicit conduct.

On December 22, 2015, Miller’s Google mail (Gmail) account uploaded eight images of child pornography. A search warrant for this same Gmail account showed the email account was used to trade child pornography and approximately fifty-five emails contained attachments of child pornography. Miller’s cell phone also contained child pornography.

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.”

The Federal Bureau of Investigation conducted the investigation. Assistant U.S. Attorney Shane Read prosecuted the case.

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DALLAS — Adan Israel Salazar, 33, of Dallas, has been charged in a federal complaint with possession of a firearm by a user of a controlled substance, announced U.S. Attorney John Parker of the Northern District of Texas.

Salazar was arrested last week on the federal offense, and he made his initial appearance yesterday in federal court where U.S. Magistrate Judge David L. Horan ordered that he remain in federal custody pending trial.

According to the filed complaint, on April 26, 2017, Salazar attempted to drive through a security checkpoint at the Dallas Police Southwest Substation located at 4230 West Illinois Ave, Dallas, Texas. Police Officers at the scene smelled the odor of freshly burned marijuana coming from the vehicle. Salazar exited the vehicle wearing a “Guy Fawkes” mask on the side of his face and a camera around his neck. Salazar was behaving in an unusual fashion by crying and kneeling on his knees. Salazar stated to officers that he “had smoked only marijuana and all of the marijuana was gone. Salazar also stated that he had “come to the station to shoot up the station…to show the world that it can be done...” and... “I want to get rid of things that bother me…”

During a search of Salazar’s vehicle, two 9mm handguns were found in the console. Both pistols had fully loaded magazines and one pistol had one round in the chamber. There were also three additional magazines for a total of 5 magazines and 110 rounds of 9mm live ammunition. In addition, seven grams of marijuana was also found in Salazar’s vehicle contained in a glass mason jar in the backseat under a large “legalize marijuana” protest sign.

A federal complaint is a written statement of the essential facts of the offenses 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 offense as charged is 10 years in federal prison, a $250,000 fine.

The Dallas Police Department is investigating the case.

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

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DALLAS — Henry Lamon Spruiell, 46, of Arlington, Texas, was sentenced today by U.S. District Judge Sam A. Lindsay to serve 24 months in federal prison following his guilty plea in January 2017 to one count of using an unauthorized access device, announced U.S. Attorney John Parker of the Northern District of Texas.

Judge Lindsay ordered that he surrender to the Bureau of Prisons on July 11, 2017. Spruiell was also order to pay restitution in the amount of $1,139,076.00.

According to documents filed in the case, from June 2013 through January 2016, Spruiell, devised a scheme to defraud The Home Depot, Inc. of money and property.

Beginning in June 2013, Spruiell, or his associates, used a fraudulently obtained Home Depot Tax Exempt ID in Spruiell’s name at various Home Depot retail stores in the Northern District of Texas and elsewhere to obtain sales tax refunds in the form of store credits or cash from Home Depot. They did so by presenting copies of sales receipts acquired by Spruiell from both his own purchases as well as the purchases made by others who used identification information that sent these sales receipts to Spruiell’s email address.

After receiving the refunds, Spruiell, or his associates using Spruiell’s Home Depot Tax Exempt IDs, reused the same copies of the sales receipts by repeatedly presenting them to Home Depot retail stores to obtain repeat refunds on the same receipts.  Spruiell obtained refunds at 18 different Home Depot retail stores. The Home Depot has estimated the total refunds in the scheme to be approximately $1,122,357.71 as of January 2016.

The United States Secret Service and Home Depot investigators investigated the case. Assistant U.S. Attorney Joseph Revesz prosecuted.

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DALLAS — A 53-year-old Alvarado, Texas, man, Jerry Wayne Smith, who pleaded guilty in January 2017 to one count of transporting and shipping child pornography, was sentenced this morning by U.S. District Judge David C. Godbey to 150 months in federal prison, announced U.S. Attorney John Parker of the Northern District of Texas.

“Far from a victimless crime, said U.S. Attorney Parker, trading in these sickening images fuels demand for more such images which, in turn, results in more innocent children being horribly victimized.”

According to documents filed in the case, the Dallas Internet Crimes Against Children (ICAC) Unit of the Dallas Police Department (DPD) received information that Smith, a City of Dallas employee, was reported by his co-workers as possessing and viewing child pornography while at his place of employment. DPD interviewed the co-workers, who confirmed they had seen Smith view child pornography on his Apple iPhone while in the employee break room at a City of Dallas facility on September 30, 2016 and again on October 3, 2016.

On October 4, 2016, DPD interviewed Smith at his place of employment. During the interview, Smith retrieved his phone and showed DPD that he browsed images of young children on the internet. A forensic review of the Apple iPhone showed multiple files depicting child pornography and a few video files depicting child pornography. In addition, the Kik application located on the Apple iPhone showed over 800 messages were observed in the application and several messaging strings were observed to have multiple attachments. The forensic review showed approximately 150 messaging exchanges and observed Smith trading files of child pornography in both individual and group messages.

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

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DALLAS — Guadalupe Segovia, aka “Sleepy,” 44, of Mesquite, Texas was sentenced last week by Chief U.S. District Judge Barbara M.G. Lynn to 240 months in federal prison, following his guilty plea in October 2016 to one count of conspiracy to distribute a controlled substance, announced U.S. Attorney John Parker of the Northern District of Texas.

Segovia and eighteen additional defendants, mostly from north Texas, were indicted in June 2016 with various felony offenses stemming from their roles in a methamphetamine distribution conspiracy that operated out of Pleasant Grove, Seagoville and Balch Springs.

Of the nineteen defendants who were indicted, all have pleaded guilty and twelve of those have been sentenced.

The investigation into this drug trafficking organization began in early January 2016. During the investigation, law enforcement seized more than 6,700 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.

According to documents filed in Segovia’s case, on February 3, 2016, law enforcement conducted a search of Segovia’s vehicle. Officers located approximately 20 grams of methamphetamine and two firearms. Segovia was responsible for at least 262.48 grams of methamphetamine during the time of the conspiracy.

The Texas Department of Public Safety and Dallas Police Department investigated the case.

Assistant U.S. Attorney Andrew Wirmani prosecuted.

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LUBBOCK, Texas — Cruz Perez, a/k/a “Travieso,” 41, was sentenced today by Senior U.S. District Judge Sam R. Cummings to 327 months in federal prison for his role in a methamphetamine, cocaine and marijuana distribution conspiracy, announced U.S. Attorney John Parker of the Northern District of Texas.

Perez, a member of the Texas Syndicate, pleaded guilty in February 2017 to one count of distribution and possession with intent to distribute 50 grams or more of a mixture and substance containing a detectable amount of Methamphetamine. Perez has been in custody since his arrest in June 2016.

“Those who choose drug dealing as an occupation take notice,” said USA Parker. “The cost to you of making that choice will be high. Do something else.”

Perez and twelve other west Texas residents, including three other members of the Texas Syndicate, were arrested in early June 2016 by special agents with the Drug Enforcement Administration (DEA) and the Texas Department of Public Safety, with assistance from the Big Spring, Sundown and Levelland Police Departments, the Howard County and Lubbock County Sheriff’s Offices, the U.S. Marshals Service, and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).

Of the twelve defendants, eleven have been sentenced for their roles in the conspiracy to the following:

Christopher Lee Gonzalez, aka “Gonzo,” 44, 327 months
Christopher David Gonzales, aka “Chris,” 42, 121 months
Evan Cruz Parson, aka “Evan,” 22, 168 months
Alexander Alfonzo Mendoza, aka “Alex,” 21, 48 months
Jose Gutierrez, III, aka “Baby Joey,” 22, 151 months
Jasmine Pillar Hernandez, aka “Crazy,” 33, 120 months
Crystal Dimas, aka “Babe,” 29, 33 months

Robert Diaz, Jr., aka “Bobby,” 34, 48 months

Adrian Rodriguez, 38, 48 months

Johnny Trevino, Jr., aka “Baby John,” 27, 48 months

Victor Manuel Castillo, aka “Victor Manuel Garza,” 44, will be sentenced later this month.

According to plea documents filed in Perez’s case, on October 3, 2015, Perez distributed and possessed with the intent to distribute 50 grams or more of methamphetamine. The investigation revealed that late that morning, Perez called Christopher Lee Gonzales and discussed Gonzales obtaining a quantity of methamphetamine from Perez. Perez advised that he’d have his nephew, Jose Gutierrez, III, bring it to Gonzales. At approximately 12:05 p.m., Perez called Gutierrez and told him that he needed to come back to Lamesa, Texas. Perez then texted/called Alexander Mendoza, who stored the methamphetamine for Perez, and instructed Mendoza to bring “The two that were left and the one that you got yesterday” and “also another 9.” At approximately 5:55 p.m., Perez and Gonzales discussed that Gonzales owned Perez approximately $21,000 for past drugs and that Gonzales was having trouble selling Perez’s methamphetamine because other dealers were selling a better quality methamphetamine for a cheaper price. Perez and Gonzales then discussed where to do the drug transaction.

Special agents with the DEA who were conducting surveillance in Lamesa observed a 2003 Chevrolet Tahoe, known to be driven by Gutierrez, traveling toward Lubbock. Agents maintained surveillance until approximately 8:35 p.m. when a Texas Highway Patrol trooper stopped Gutierrez in Lubbock and found he was transporting approximately 500 grams of methamphetamine.

That evening, Gutierrez’s wife called Perez and told him that “Joey” texted her at 8:40 p.m., saying that he got “pulled over in Lubbock.” She called Perez and told him, “He went to jail.” When she called Perez at 9:19 p.m. and told him, “he got caught,” Perez asked, “With it? With the stuff?” She responded affirmatively. At approximately 9:11 p.m., Perez called Parson and told him, “Baby Joey went to jail,” referring to Gutierrez being arrested with the methamphetamine. Then, at approximately 9:23 p.m., Perez called Gonzales and told him, “He didn’t make it.”; referring to Gutierrez being arrested with the methamphetamine.

The Texas Department of Public Safety and the DEA investigated. Assistant U.S. Attorneys Juanita Fielden and Sean Long prosecuted.

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DALLAS — Rene Rodriguez, 31, was sentenced yesterday before U.S. District Judge Jane J. Boyle for his role in a heroin distribution conspiracy, announced U.S. Attorney John Parker of the Northern District of Texas.

Rodriguez was sentenced to 108 months in federal prison following his guilty plea in September 2016 to one count of possession with intent to distribute and the distribution of a mixture and substance containing a detectable amount of heroin. Rodriguez has been in custody since his arrest in June 2016.

“I’ve repeatedly said that law enforcement will push back hard on those who peddle this poison in our communities and destroy lives,” said U.S. Attorney Parker. “We intend to continue making the costs of choosing drug trafficking as a career as high as possible.”

Rodriguez was charged along with six others with various offenses related to a heroin distribution conspiracy. Of the seven charged, all have pleaded guilty, four have been sentenced.

According to documents filed in the case, on April 15, 2016, Rodriguez sold one ounce of heroin in exchange for $1,250 from the ANR Smoke Shop, in Dallas, Texas.

On June 2, 2016, law enforcement agents executed a federal search warrant at Rodriguez’s home in Dallas. The agents found approximately four ounces of heroin, digital scales with heroin residue, two firearms, miscellaneous ammunition, and approximately $10,913.00.

The Drug Enforcement Administration, Allen Police Department and Rockwall Police Department investigated. Assistant U.S. Attorney Suzanna Etessam prosecuted.

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FORT WORTH, Texas — Jake Lindsey Hardin, a/k/a “Cash,” 33, was sentenced last week by U.S. District Judge John McBryde to 240 months in federal prison for his role in a methamphetamine distribution conspiracy, announced U.S. Attorney John Parker of the Northern District of Texas.

Hardin pleaded guilty to one count of conspiracy to possess with intent to distribute a controlled substance. Hardin was a fugitive for six months before his arrest in November 2016.

In between April and August 2016, 80 defendants were charged in drug conspiracy cases related to this one, including some members and associates of the Aryan Brotherhood of Texas prison gang.

According to plea documents, in 2014 and 2015 Hardin received ounce quantities of methamphetamine from other co-conspirators often on consignment. In turn, Hardin distributed methamphetamine to various customers in the Fort Worth, Texas area.

The Drug Enforcement Administration (DEA), U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Fort Worth Police Department, the Texas Department of Public Safety (DPS), and the Bureau of Alcohol, Tobacco, and Firearms (ATF) investigated. Assistant U.S. Attorneys Shawn Smith and Frank Gatto prosecuted the case.

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DALLAS — Lee Robertson, 33, and Tasmin Stewart, a/k/a “Taz,” 30, both of Baton Rouge, Louisiana were sentenced today by U.S. District Judge Sidney A. Fitzwater stemming from their involvement in a “pill mill” operation, announced U.S. Attorney John Parker of the Northern District of Texas.

Judge Fitzwater sentenced Robertson to 84 months in federal prison following his guilty plea to one count of conspiracy to distribute a controlled substance, namely, Oxycodone in October 2016. Stewart was sentenced to 27 months in federal prison following his guilty plea to one count of unlawful use of a communication device in April 2016. Both defendants have been in custody since their arrests.

In March 2015, a federal grand jury in Dallas indicted 23 individuals, including Stewart, on offenses related to his participation in a prescription drug distribution conspiracy. Robertson was charged in January 2016 by a superseding indictment. The indictment alleged that from at least May 2013 through July 2014, the defendants participated in a scheme to illicitly obtain prescriptions for pain medications, such as oxycodone and hydrocodone, and then distribute those controlled substances for profit. As part of the conspiracy, individuals, often homeless or of limited means, were recruited and paid to pose as patients at medical clinics, including the McAllen Medical Clinic in Dallas, to obtain prescriptions and to fill those prescriptions at designated pharmacies.

The prescription medications were then distributed like street drugs in Texas and Louisiana.

According to plea documents filed for Stewart, on October 21, 2013, Stewart made a telephone call to confirm that he wanted 30mg oxycodone pills and would be ready to meet a courier arriving from Dallas with the pills. Stewart intended to distribute these pills to his own customers.

According to documents filed for Robertson, on February 27, 2014, Robertson contacted co-conspirator and supplier Cornelius Robinson seeking 30mg oxycodone pills. Robertson offered to buy all the pills Robinson had for $16.00 per pill. Robinson responded by telling Robertson that he was waiting on an individual to arrive from Dallas with approximately 700 pills. On March 3, 2014, Robertson agreed to buy 500 30mg oxycodone pills from Robinson.

This Organized Crime Drug Enforcement Task Force (OCDETF) was investigated by the Drug Enforcement Administration and the Internal Revenue Service Criminal Investigation, with assistance from the Texas Department of Public Safety, the Louisiana State Police, the Grand Prairie Police Department, the Dallas Police Department, the Houston Police Department, the Arlington Police Department, the Greenville Police Department, the Parker County Sheriff’s Office, the U.S. Marshal’s Service, the U.S. Postal Inspection Service, and the Diplomatic Security Service. Assistant U.S. Attorney Mary Walters prosecuted.

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LUBBOCK, Texas —Rodrigo Ramiro Menchaca, 27, of San Angelo, Texas, was sentenced today by Senior U.S. District Judge Sam R. Cummings to 148 months in federal prison, following his guilty plea in January 2017 to one count of stalking and one count of possession of prepubescent child pornography, announced U.S. Attorney John Parker of the Northern District of Texas.

“Victimizing someone, particularly a child, from one’s computer may seem easy and low-risk,” said U.S. Attorney Parker. “But my office will do everything in our power to raise the cost to those who engage in such despicable behavior.”

According to documents filed in the case, between October 30, 2015 and November 7, 2015, Menchaca engaged in a series of communications with a minor female who resided in Virginia. Menchaca used a mobile application called Kik to communicate with the girl. During these Kik communications, Menchaca sent the girl various photographs that she had posted on other social networking accounts. The photographs were not sexual in nature, but were sent by Menchaca to the girl with the false representation that they had been shared with Menchaca by the girl’s father. Menchaca’s messages to the girl were sexually explicit.

In addition, between August 4, 2012 and October 28, 2016, Menchaca placed material on a thumb drive which he knew constituted images and videos of minors engaged in sexually explicit conduct, and he kept that thumb drive in his possession.

The case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood 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 investigation was conducted by the U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the San Angelo Police Department and the Fluvanna County Sheriff’s Office in Fluvanna, Virginia. Assistant U.S. Attorney Steven M. Sucsy was in charge of the prosecution.

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LUBBOCK — Jose Augustine Hernandez, 32, of Lubbock, was sentenced this morning by Senior U.S. District Judge Sam R. Cummings to 71 months in federal prison, following his guilty plea in January 2017, announced U.S. Attorney John Parker of the Northern District of Texas.

Hernandez pleaded guilty to one count of convicted felon in possession of a firearm and ammunition. Hernandez has been in custody since the time of his arrest in April 2016.

According to documents filed in the case, on April 5, 2016, an officer with the Lubbock County, Texas, Sheriff’s Office responded to a vehicle obstructing a roadway just outside the City of Lubbock. The driver and sole occupant was identified as Hernandez. Hernandez told officers he had run out of gas. While speaking with Hernandez, the officer noticed the butt of a shotgun between the console and front passenger seat of the vehicle. The officer asked Hernandez, who had previously been convicted of a crime punishable by a term of imprisonment exceeding one year, to step out of the vehicle and the officer noticed the smell of marihuana coming from inside the car. Hernandez admitted to smoking marihuana inside the vehicle. Hernandez was found to have outstanding warrants and was placed under arrest. The officer then searched Hernandez and located several baggies containing methamphetamine in Hernandez’s pocket. Hernandez was also in possession of a cell phone that contained several text messages related to the purchase and sale of narcotics. The officer also located approximately twenty-two 20-gauge shotgun shells inside the vehicle.

The Bureau of Alcohol, Tobacco, Firearms, and Explosives, Lubbock County Sheriff’s Office, and Lubbock Police Department investigated the case. Assistant U.S. Attorney Sean Long prosecuted.

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DALLAS — Alicia Gardner, 43, of Dallas, was sentenced this morning by U.S. District Judge Sidney A. Fitzwater to 24 months in federal prison for aggravated identify theft, announced U.S. Attorney John Parker of the Northern District of Texas.

Gardner pleaded guilty to one count of aggravated identity theft. Judge Fitzwater ordered Gardner to surrender to the Bureau of Prisons on June 20, 2017. Gardner was also ordered to pay $384,391.99 in restitution to the Internal Revenue Service.

According to documents filed in her case, from approximately January 11, 2013 to March 1, 2013, Gardner knowingly and intentionally participated in a scheme to defraud the Internal Revenue Service (IRS). More specifically, Gardner electronically filed tax returns for the tax year 2012 with her EFIN under taxpayers’ names and social security numbers without the taxpayers’ knowledge or consent. At her consent, the IRS issued refund checks to her as opposed to the unsuspecting taxpayers. Some of those checks were in the taxpayer’s names. Gardner and/or her unindicted coconspirator then proceeded to forge the signatures of the taxpayers on the refund checks and cash them. For instance, on November 11, 2013, Gardner electronically submitted a tax return with a refund request of $1,112 for K.V., without K.V.’s knowledge or consent. Gardner then endorsed and cashed the refund check.

The case was investigated by IRS Criminal Investigation. Assistant U.S. Attorney Andrew Wirmani prosecuted.

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DALLAS, Texas — Christopher Dale Gann, 30, of Dallas, Texas, was sentenced today by U.S. District Judge Sidney A. Fitzwater to 240 months in federal prison, following his guilty plea in December 2016 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.

Gann has been in custody since the date of his arrest in October 2016.

According to plea documents, on August 22, 2016 law enforcement encountered Gann in Dallas, Texas. Gann was in possession of a cellular phone as well as three memory cards. A forensic examination of Gann’s phone revealed the presence of a still image of a minor engaged in sexually explicit conduct. Gann communicated that same day with an individual on the Kik Instant Messaging application and sent the image from his phone.

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.”

U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the U.S. Marshals Service investigated the case. Assistant U.S. Attorney A. Saleem was in charge of the prosecution.

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DALLAS — Al Torrell Beasley, a/k/a “Rody,” 39, of Dallas, was sentenced today by U.S. District Judge Sidney A. Fitzwater to 110 months in federal prison, following his guilty plea in November 2015 to one count of conspiracy to distribute a controlled substance, announced U.S. Attorney John Parker of the Northern District of Texas.

Beasley and twenty additional defendants, mostly from north Texas and Oklahoma, were arrested in May 2015 in a joint operation led by the Dallas Police Department, Dallas County Sheriff’s Office and the Dallas FBI – Violent Gang Safe Streets Task Force.

Of the twenty-one defendants who were indicted, 19 have pleaded guilty and 16 of those have been sentenced. Charges against one defendant were dismissed, and one remains a fugitive.

According to documents filed in the case, on several occasions between January 2013 and May 2015, Beasley possessed with the intent to distribute and distributed cocaine base in the Dallas area for co-defendant Roger Jackson from an apartment complex on Peabody Road in Dallas. Beasley often used a cellular telephone to discuss, negotiate, and facilitate drug transactions with his co-conspirators, which were his source of supply and/or customers.

During the period that the conspiracy was ongoing, Beasley possessed with the intent to distribute and/or distributed 189.75 grams of a mixture or substance containing a detectable amount of cocaine base and 148.75 grams of cocaine.

The Federal Bureau of Investigation investigated the case.

Assistant U.S. Attorney Phelesa Guy prosecuted.

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DALLAS, Texas — Johnathon Deontre Smith, 25, of Dallas, is in federal custody on a sex trafficking of children charge outlined in an indictment filed earlier this week, announced U.S. Attorney John Parker of the Northern District of Texas.

Smith made his initial appearances today before U.S. Magistrate Judge Paul D. Stickney. A detention hearing is scheduled for May 11, 2017.

The indictment alleges that from January 23, 2017 through February 6, 2017, Smith recruited, enticed, harbored, transported, provided, obtained, advertised, maintained, patronized, and solicited Jane Doe, a female under the age of 18 years old, to engage in commercial sex acts.

A defendant is entitled to the presumption of innocence until proven guilty. However, if convicted, the maximum statutory penalty for each of the offenses charged is life in federal prison and a $250,000 fine.

The Federal Bureau of Investigation is investigating. Assistant U.S. Attorney Nicole Dana is in charge of the prosecution.

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