Northern District of Texas

DALLAS — A 25-year-old Dallas woman is the latest defendant to appear in federal court and plead guilty to a felony drug offense stemming from her role in the March 2014 heroin overdose death of a Dallas teenage girl, Rian Hannah Lashley, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.

Kathryn Grace Dirks, a/k/a “Kat,” appeared today before U.S. Magistrate Judge Irma C. Ramirez and pleaded guilty to one count of conspiracy to possess with the intent to distribute heroin. Dirks of the third of four defendants charged in the case to plead guilty. Last month, Glen William Brunton, 28, pleaded guilty to the same offense, and in March 2015, Cierra Allyn Rounds, 27, did the same. Each faces a maximum statutory sentence of 20 years in federal prison and a $1 million fine. Dirks is scheduled to be sentenced by U.S. District Judge Sam A. Lindsay on October 19, 2015; Brunton is scheduled to be sentenced on October 5, 2015; and Rounds is scheduled to be sentenced on September 8, 2015.

The remaining defendant in the case, Jimison Erik Coleman, 36, is set for trial before Judge Lindsay on August 3, 2015. He is charged with one count of conspiracy to possess with intent to distribute heroin; one count of possession of heroin with intent to distribute, the use of which resulted in the death and serious bodily injury of Lashley; and one count of distribution of heroin, the use of which resulted in the death and serious bodily injury of Lashley.

According to documents filed in the case, Dirks admitted that in 2013 and part of 2014, she was involved in a romantic relationship with co-defendant Coleman. In addition to being her boyfriend, Coleman also acted as Dirks’ primary source of supply for heroin, methamphetamine, Xanax and other drugs. During the time they were together, Coleman routinely distributed drugs, including heroin, MDMA and prescription drugs to dancers and patrons at a Dallas strip bar where Dirks worked. Dirks admitted that, on occasion, she assisted Coleman by directing customers who were interested in purchasing drugs to him, and in return, Coleman provided Dirks with heroin and other drugs to support her drug addiction.

During the early morning hours of March 25, 2014, Dirks, Coleman and Lashley traveled from an apartment complex to an IHOP restaurant in Plano, Texas. After arriving at the restaurant, Dirks, Coleman and Lashley were joined by co-defendants Brunton and Rounds. While sitting in a booth, the group ate breakfast and discussed traveling to a music festival in Miami, Florida.

Later that morning, according to the factual resume, in a parking lot near the IHOP, Coleman delivered five baggies of “China White” heroin to Brunton, and Brunton subsequently distributed the heroin to Lashley in exchange for approximately $120.00. Prior to March 25, 2014, Lashley had never used heroin.

After acquiring the heroin, Dirks, Rounds and Lashley left the IHOP in Lashley’s vehicle and travelled to a residence in Dallas where Rounds lived. Coleman and Brunton left in a separate vehicle.

Once the group arrived at the residence, the three went inside, and once inside, Dirks and Rounds, at Lashley’s request, took possession of the heroin originally supplied by Coleman and Brunton and used a syringe to inject the heroin into the Lashley. Later that morning, Lashley began showing signs of distress and eventually stopped breathing. Dirks admitted she and Rounds tried to resuscitate Lashley, to try to reverse the effects of the heroin, by placing Lashley in a bathtub filled with water and ice. Lashley was eventually placed on a couch where she appeared to go to sleep.

Dirks admitted she took $3000.00 in cash belonging to Lashley and that she left the residence with Coleman shortly after Lashley was placed on the couch. Lashley died later that afternoon, and an autopsy concluded that she died as a result of the toxic effects of heroin.

A federal indictment is an accusation by a grand jury and a defendant is entitled to the presumption of innocence unless proven guilty.

The Dallas Police Department, the FBI, the U.S. Marshals Service and the Buena Park Police Department are investigating. Deputy Criminal Chief Assistant U.S. Attorney Rick Calvert and Assistant U.S. Attorney Phelesa Guy are prosecuting.

DALLAS — A local man who admitted willfully failing to file income tax returns for tax years 2010 and 2011 has been sentenced, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.

Anthony Rolfe was sentenced last week to serve a total of 22 months in federal prison and ordered to pay $100,490 in restitution to the Internal Revenue Service (IRS). He pleaded guilty in March 2015 to an Information charging two counts of failure to file. He has been in custody since his arrest in November 2014.

According to the factual resume filed in the case, Rolfe was employed by Dr. LeeRoy McCurley at a pain management clinic in Dallas, known as Mid-City Medical Clinic. As part of his job, Rolfe picked up the clinic’s earnings and delivered them to McCurley, in person or through McCurley’s office in Grand Prairie, Texas. Rolfe also delivered office supplies to and distributed fliers for the clinic. For these tasks, according to the factual resume and criminal complaint filed in the case, McCurley paid Rolfe thousands of dollars per week in checks that Rolfe deposited into an account at JPMorgan Chase Bank in the name of Platinum A&C Group, LLC, an entity for which Rolfe was a managing partner. Bank records showed that Rolfe deposited more than $500,000 in payments from McCurley in 2010 and 2011 and used the majority of the money on clothing and jewelry, hotel and resort stays, nightclub tabs, and yacht rentals.

IRS Criminal Investigation investigated the case. Assistant U.S. Attorney John de la Garza prosecuted.

DALLAS — A 40-year-old Dallas man who pleaded guilty last year to three federal felony offenses in an investigation that began when law enforcement learned he was claiming packages containing anabolic steroids from a postal center in Dallas, was sentenced today, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.

Nicholas Todd Freed was sentenced by U.S. District Judge Sam A. Lindsay to 97 months in federal prison. He has been in custody since his arrest in late January 2014 by a Task Force Officer with Homeland Security Investigations (HSI), as he was attempting to claim a package containing anabolic steroids at the Deep Ellum Postal Center in Dallas. Pursuant to the arrest, law enforcement discovered Freed possessed a counterfeit U.S. Marshals Service (USMS) credential and badge. Freed was charged in a federal criminal complaint with attempting to possess anabolic steroids and falsely making, forging, counterfeiting and altering a USMS seal. Later, the investigation revealed that Freed also possessed numerous thumb drives containing images of minors engaging in obscene, sexually explicit conduct.

Freed pleaded guilty in November 2014 to a three-count superseding information charging one count of attempted possession with intent to distribute a controlled substance, one count of possession of a document-making implement with intent that it be used in the production of false documents, and one count of possession of obscene visual representations of the sexual abuse of children.

In early January 2014, U.S. Customs and Border Protection (CBP) in San Francisco identified a U.S. Postal Service Express Mail parcel, arriving from Singapore, as suspicious. The parcel contained approximately 1,087 grams of an oily liquid, later determined to contain an anabolic steroid, and it was addressed to JPEG Press, 3100 Main Street #1, Dallas, Texas 75226, which is the address of the Deep Ellum Postal Center. CBP notified HSI in Dallas of the parcel and its contents.

The ensuing investigation determined that the account for the rental box at the postal center was opened with fictitious information, and the box frequently received similar packages. On January 28, 2014, when the HSI task force officer approached Freed who was at the postal center to pick up the package, he discovered Freed was carrying a USMS badge and apparent counterfeit USMS credentials identifying him as a USMS Chief Inspector.

Later that day during a consensual search at Freed’s residence, law enforcement seized computers and computer equipment as well as other items Freed used to make false government identification documents, including laminating materials, blank plastic cards the size of a driver license, pages of magnetic strips for the backs of identification cards, ink consistent with the Texas seal on state licenses and identifications cards, a laminating press, hologram materials of official government seals, pages of names and identities used in the production of the false identifications, and head shots.

Upon further examination of the seized thumb drives, the task force officer discovered visual depictions of minors, including prepubescent minors, engaging in obscene, sexually explicit conduct.

U.S. Immigration and Customs Enforcement’s HSI , CBP, and the Balch Springs and Dallas Police Departments investigated. Assistant U.S. Attorney Keith Robinson prosecuted.

DALLAS — A federal grand jury has returned a two-count indictment charging an Austin, Texas, corporate executive with offenses related to a public corruption investigation involving Dallas County Commissioner John Wiley Price and others, announced John Parker, Acting U.S. Attorney for the Northern District of Texas and Richard L. Durbin, Jr., Acting U.S. Attorney for the Western District of Texas.

Helena Tantillo, 58, of Austin, is charged in the indictment, returned by a federal grand jury in Austin last week, and unsealed today, with two counts of making a false statement to law enforcement. Tantillo surrendered to federal authorities in Austin today and made her initial appearance before a U.S. Magistrate Judge who released her on bond.

A federal criminal indictment is a written statement of the essential facts of the offense charged. A defendant is entitled to the presumption of innocence until proven guilty. The statutory penalty, upon conviction, for the offense charged is five years in federal prison and a $250,000 fine, per count.

The FBI and Internal Revenue Service Criminal Investigation are conducting the investigation. Assistant U.S. Attorneys Walt M. Junker and J. Nicholas Bunch and Deputy Criminal Chief Assistant U.S. Attorney Katherine Miller are prosecuting.

DALLAS – Attorney General Loretta E. Lynch and Department of Health and Human Services (HHS) Secretary Sylvia Mathews Burwell announced today a nationwide sweep led by the Medicare Fraud Strike Force in 17 districts, resulting in charges against 243 individuals, including 46 doctors, nurses and other licensed medical professionals, for their alleged participation in Medicare fraud schemes involving approximately $712 million in false billings. In addition, the Centers for Medicare & Medicaid Services (CMS) also suspended a number of providers using its suspension authority as provided in the Affordable Care Act. This coordinated takedown is the largest in Strike Force history, both in terms of the number of defendants charged and loss amount.

“This action represents the largest criminal health care fraud takedown in the history of the Department of Justice, and it adds to an already remarkable record of enforcement,” said Attorney General Lynch. “The defendants charged include doctors, patient recruiters, home health care providers, pharmacy owners, and others. They billed for equipment that wasn’t provided, for care that wasn’t needed, and for services that weren’t rendered. In the days ahead, the Department of Justice will continue our focus on preventing wrongdoing and prosecuting those whose criminal activity drives up medical costs and jeopardizes a system that our citizens trust with their lives. We are prepared – and I am personally determined – to continue working with our federal, state, and local partners to bring about the vital progress that all Americans deserve.”

Acting U.S. Attorney John Parker of the Northern District of Texas announced that as part of the nationwide takedown, seven individuals, including two physicians and one registered nurse, were indicted in the district.

“This district will continue to focus all the tools and resources of the Medicare Fraud Strike Force on those who cheat not only Medicare and Medicaid, but all taxpayers and vulnerable patients as well,” said Acting U.S. Attorney Parker. “When these schemes are uncovered, and they will be, this office will not hesitate to bring indictments, such as the two that were unsealed this week in Dallas, against those who defraud these essential health care programs.”

One indictment charges each of the below-listed defendants with one count of conspiracy to commit health care fraud:

Noble U. Ezukanma, 56, of Fort Worth, Texas

Myrna S. Parcon, a/k/a “Merna Parcon,” 62, of Dallas, Texas

Lita S. Dejesus, 70, of Allen, Texas

Oliva A. Padilla, 57, of Garland, Texas

Ben P. Gaines, 55, of Plano, Texas

These five defendants were arrested on Tuesday, June 16, 2015. Each made their initial appearance in federal court and was released on bond. A sixth defendant is expected to surrender to federal authorities tomorrow in Dallas.

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

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

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

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

According to the indictment, from January 1, 2009 to approximately June 9, 2013, the defendants ran a conspiracy to defraud Medicare. As part of the fraudulent business model, Ezukanma and another physician certified 94% of the Medicare beneficiaries receiving home health services from A Good, and 65% of the Medicare beneficiaries receiving home health services from Essence. Had Medicare known of the true ownership and improper relationship between the three companies, Medicare would not have allowed these companies to enroll in the program and bill for services.

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

The other indictment charges Mariamma Viju, 50, of Garland, Texas, with one count of conspiracy to commit health care fraud, five counts of health care fraud, and one count of wrongful disclosure of individually identifiable health information. Viju is a registered nurse and is the co-owner and Director of Nursing for Dallas Home Health, Inc. She was arrested on Tuesday, June 16, 2015, made her initial appearance in federal court, and was released on bond.

The indictment alleges Viju and her coconspirators stole patient information from Dallas-area hospitals with the intent to use that information to solicit patients for Dallas Home Health. Viju allegedly purposefully took that information from Baylor University Medical Center at Dallas, where she worked as a nurse until her employment was terminated.

Dallas Home Health billed Medicare and Texas Medicaid for home health service on behalf of Medicare beneficiaries and Medicaid clients who were not homebound and other otherwise eligible for covered home health services. As Director of Nursing, Viju falsified and exaggerated the nature of patients’ health conditions to increase the amount billed to Medicare and Medicaid, and paid to Dallas Home Health. Viju also allegedly paid kickbacks to Medicare beneficiaries to recruit and retain them as patients of Dallas Home Health.

In a related case, Mariamma Viju’s husband, Viju Mathew, 50, also of Garland, a former registration specialist at Parkland Hospital in Dallas, pleaded guilty in November 2014 to one count of fraud and related activity in connection with identification documents, authentication features and information (identity theft). He used his position at the hospital to obtain confidential patient information, including patients’ names, telephone numbers, dates of birth, participation in the Medicare program, and government-issued health insurance claim numbers so that he could use it to contact prospective patients for his home health care business. He is scheduled to be sentenced in August 2015.

The Medicare Fraud Strike Force operations are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since their inception in March 2007, Strike Force operations in nine locations have charged over 2,300 defendants who collectively have falsely billed the Medicare program for over $7 billion.

Including today’s enforcement actions, nearly 900 individuals have been charged in national takedown operations, which have involved more than $2.5 billion in fraudulent billings. Today’s announcement marks the first time that districts outside of Strike Force locations have participated in a national takedown and accounted for 82 defendants charged in the takedown.

A complaint or indictment is merely a charge, and defendants are presumed innocent until proven guilty. The maximum statutory penalty for each count in each of these two indictments is 10 years in federal prison and a $250,000 fine.

The Northern District of Texas cases are being investigated by the FBI, the U.S. Department of Health and Human Services – Office of Inspector General and the Texas Attorney General’s Medicaid Fraud Control Unit and were brought as part of the Medicare Fraud Strike Force supervised by the Criminal Division Fraud Section and the U.S. Attorney’s Office for the Northern District of Texas.

Assistant U.S. Attorneys Katherine Pfeifle and Douglas Brasher are in charge of the prosecutions.

LUBBOCK, Texas — Jeffrey William McCall, 41, appeared earlier this week before U.S. Magistrate Judge Nancy M. Koenig and pleaded guilty to one count of production of child pornography, announced John R. Parker, Acting U.S. Attorney for the Northern District of Texas.

McCall faces a statutory penalty of not less than 15 years and not more than 30 years in federal prison, up to a $250,000 fine and up to a lifetime of supervised release. A sentencing date was not set; McCall remains in federal custody.

According to documents filed in the case, On April 7, 2015 McCall obtained a video of a minor child by hiding his cellular telephone in the bathroom and turning on the video camera when the child went into the bathroom to take a shower. McCall carefully positioned and aimed the lens of the camera with the intent of obtaining images of the girl.

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

The FBI and the Lubbock Police Department investigated. Assistant U.S. Attorney Steven M. Sucsy is in charge of the prosecution.

LUBBOCK, Texas — A 43-year-old Cisco, Texas, man appeared in federal court this week and pleaded guilty, before U.S. Magistrate Judge Nancy M. Koenig, to one count of possession of child pornography, announced Acting U.S. Attorney John R. Parker of the Northern District of Texas.

Robert Jarold Eckhart, who remains on bond, faces a maximum statutory penalty of 10 years in federal prison, a $250,000 fine and a lifetime of supervised release. According to plea documents filed in his case, if the Court accepts the plea agreement, the parties agree that the appropriate maximum term of imprisonment is 24 months’ imprisonment. A sentencing date was not set.

According to documents filed in the case, Eckhart used his Apple iPod 4 to communicate with other persons over the internet and communicate with several persons about adult pornography and child pornography. Eckhart advised that his interests included younger males, and as a result, he received numerous images of minor males engaged in sexually explicit conduct. Between May 2011 and May 2012 Eckhart knowingly possessed his iPod knowing that it contained numerous images of child pornography.

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

The Federal Bureau of Investigation and investigated. Assistant U.S. Attorney Steven M. Sucsy is prosecuting.

DALLAS — A 52-year-old registered nurse from Cedar Hill, Texas, who owned a home health company, appeared in federal court this afternoon and pleaded guilty to her role in a health care fraud conspiracy, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.

Pat Akamnonu, along with her husband, Cyprian (Cy) Akamnonu, owned Ultimate Care Home Health Services, Inc. (Ultimate). She pleaded guilty this afternoon before U.S. Magistrate Judge Irma C. Ramirez to one count of conspiracy to commit health care fraud, which carries a maximum statutory penalty of 10 years in federal prison and a $250,000 fine. A sentencing date was not set. Cy Akamnonu pleaded guilty to the same offense and is currently serving a 120-month federal prison sentence. Cy Akamnonu was also ordered to pay approximately $25 million in restitution.

According to the filed factual resume, Pat Akamnonu maintained a valid Medicare group provider number for Ultimate in order to submit Medicare claims for home health services that were medically unnecessary or that were not provided to Medicare beneficiaries.

In her capacity as co-owner and head of nursing for Ultimate, Pat Akamnonu attended at least one meeting where she and co-defendants Dr. Jacques Roy, Teri Sivils, and Cy Akamnonu discussed recruiting additional Medicare beneficiaries to Ultimate to receive home health care services for which they did not qualify and did not need. This meeting also included a discussion about illegal patient recruiting being performed by co-defendants James Veasey and Cynthia Stiger.

As part of the conspiracy, Ultimate exchanged paperwork with Medistat Group Associates, P.A. (Medistat) that was controlled by Dr. Roy for these beneficiaries. These documents were then executed under Dr. Roy’s signature, certifying the patient was under his care. Several of the documents used to certify home health care for these individuals are signed under the name of Pat Akamnonu.

Over the course of a five-year period, from January 2006 through November 2011, more than 78% of Ultimate’s beneficiaries were certified by Dr. Roy or another Medistat physician acting at his direction. Ultimate billed more than $43 million to Medicare for skilled nursing services for these beneficiaries.

Of the seven defendants charged in the $375 million health care fraud scheme led by Dr. Roy, three defendants have now pleaded guilty. Teri Sivils, 47, of Midlothian, Texas, who was Medistat’s office manager, pleaded guilty in April 2015 to one count of conspiracy to commit health care fraud. She faces a maximum statutory penalty of 10 years in federal prison and a $250,000 fine. Sentencing is set for September 21, 2015.

A trial date has not been set for the remaining defendants, Dr. Roy, Cynthia Stiger, 51, of Dallas, Wilbert James Veasey, Jr., 63, of Dallas, and Charity Eleda, R.N., 54, of Rowlett, Texas.

The case is being investigated by the FBI, the U.S. Department of Health and Human Services – Office of Inspector General and the Texas Attorney General’s Medicaid Fraud Control Unit and was brought as part of the Medicare fraud Strike Force supervised by the Criminal Division Fraud Section and the U.S. Attorney’s Office for the Northern District of Texas.

Assistant U.S. Attorneys Michael C. Elliott, P. J. Meitl, and John DeLaGarza, and Special Assistant U.S. Attorney Nicole Dana are prosecuting.

 

DALLAS, Texas — Breanna Polk, 32, of Dallas, Texas, charged with one count of wire fraud plead guilty June 16, 2015, before U.S. Magistrate Judge Irma Ramirez, announced Acting U.S. Attorney John R. Parker of the Northern District of Texas.

She faces a maximum statutory penalty of 20 years imprisonment, $250,000 fine and not more than three years of supervised release. A sentencing date of October 1, 2015 has been scheduled.

According to plea documents filed in the case, on August 2, 2007 a parolee with the Texas Department of Criminal Justice (TDCJ) reported to his parole officer, Polk at the Garland, Texas parole office. Polk advised the individual she planned to take a trip to Florida to celebrate her birthday. The parolee left approximately $500 on Polk’s desk. On at least two other occasions between August 2007 and March 2010, the same individual paid over $500 to receive favorable treatment from Polk concerning the conditions of his parole.

In or around March 2010, the parolee absconded to Mexico to avoid DEA law enforcement in connection with his illegal drug distribution. The parolee paid Polk $2,000 to assist him in avoiding law enforcement by indicating he reported to parole, when he had not. Additionally Polk agreed to check for any arrest warrants and notify the parolee if he had an active arrest warrant. On June 8, 2010 Polk conducted a search on a National Crime Information Center database to determine if the parole had an active arrest warrant, Polk transmitted the search by means of a wire communication.

The Federal Bureau of Investigation and Texas Department of Criminal Justice – Office of the Inspector General were involved in the investigation.

Assistant U.S. Attorney Katherine Pfeifle is prosecuting the case.

FORT WORTH, Texas — Kelly Dan Williams, a special needs instructor at Mansfield Independent School District’s (ISD) Mary Orr Intermediate School, has been charged in a federal complaint with production of child pornography, announced Acting U.S. Attorney John Parker of the Northern District of Texas.

Williams, 62, was arrested Friday on the federal offense, and he made his initial appearance today in federal court in Fort Worth where U.S. Magistrate Judge Jeffrey L. Cureton ordered that he remain in federal custody pending a probable cause and detention hearing set for Wednesday morning.

According to the filed complaint, on June 1, 2015, an individual at Mary Orr Intermediate School observed Williams performing a sex act on an 11-year-old male student in a school bathroom stall. This individual reported this to the school’s administration, and Williams was directed to report to the Human Resources office.

During the course of an investigation, Mansfield Police obtained a search warrant for Williams’ residence, where they seized electronic storage devices, to include an SD card. A forensic examination revealed that a video located on the SD card depicted Williams performing a sex act on a minor male, who appears to be younger than age 12, in what appears to be a school bathroom stall. Further forensic analysis indicates that the video was created on or about February 3, 2010.

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 maximum statutory penalty for the offense as charged is not less than 15 years, or more than 30 years, in federal prison, a $250,000 fine and a lifetime of supervised release.

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.”

U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Mansfield ISD Police Department, the Mansfield Police Department and the Tarrant County District Attorney’s Office are investigating.

Assistant U.S. Attorney A. Saleem is in charge of the prosecution.

LUBBOCK, Texas — Larry Richie Fields, 45, of Wingate, Texas, was sentenced today by U.S. District Judge Sam R. Cummings to 20 years in federal prison, following his guilty plea in February 2015 to one count of transportation of child pornography. Acting U.S. Attorney John Parker of the Northern District of Texas made the announcement today.

According to documents filed in the case, on October 25, 2014, Fields, who has been in federal custody since his arrest in January, used the Internet to transport two images of child pornography using an online social networking service. Over a period of years, beginning no later than 2012, Fields used various social networking services and online storage services to post and store images depicting minors engaging in sexually explicit conduct. Fields used multiple usernames to trade, collect, transport, and receive child pornography.

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

The case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); the Dallas Internet Crimes Against Children (ICAC) Task Force; the Texas Department of Public Safety, Criminal Investigations Division; the Taylor County Sheriff’s Office; and the San Angelo Police Department, Special Operations Division.

Assistant U.S. Attorney Steven M. Sucsy of the U.S. Attorney’s Office in Lubbock, Texas, prosecuted.

DALLAS — A Dallas man who pleaded guilty last year to his role in a drug trafficking conspiracy and using firearms in furtherance of that drug trafficking crime, has been sentenced, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.

Jesse Rodriguez, 35, was sentenced on Wednesday by U.S. District Judge Sam A. Lindsay to serve a total of 108 months in federal prison. Rodriguez pleaded guilty in September 2014 to one count of conspiracy to distribute cocaine and heroin and one count of possessing a firearm in furtherance of that drug trafficking crime.

According to documents filed in the case, Rodriguez admitted that from approximately November 1, 2013, to February 21, 2014, he and co-defendant Felix Medina, 32, conspired together and with others to distribute and possess with the intent to distribute, cocaine and heroin. Rodriguez also admitted that during that time, he possessed numerous firearms. Medina has also pleaded guilty and is scheduled to be sentenced on August 17, 2015.

In furtherance of the conspiracy according to the factual resume, Rodriguez and Medina had two residences in Dallas, next door to the other, from which they would sell and store the drugs, store the proceeds from their illegal drug sales, and possess firearms to protect themselves, the controlled substances, and the proceeds. When law enforcement executed a search warrant at the two residences on February 21, 2014, they found, among other things, approximately 223 grams of suspected cocaine, more than $18,000 in cash, baggies, more than 5,000 rounds of ammunition, video surveillance equipment, and approximately 40 firearms, including one Rodriguez had in his waistband.

The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Deputy Criminal Chief Assistant U.S. Attorney Lisa Miller prosecuted.

DALLAS – A Mesquite, Texas man, Bilal Abood, 37, has been charged in a federal indictment with one count of making a false statement to a federal agency, announced Assistant Attorney General for National Security John P. Carlin, Acting U.S. Attorney John Parker of the Northern District of Texas and Special Agent in Charge Thomas M. Class Sr. of the FBI’s Dallas Field Office.

Abood has been in federal custody since his arrest last month by special agents with the FBI on a related criminal complaint.

According to the indictment, on March 29, 2013, Abood attempted to depart the United States from Dallas Fort Worth International Airport, but was not allowed to board the flight. While at the airport, FBI agents asked Abood about his planned travel, and he initially advised agents that he was merely planning to travel to Iraq to visit family. During a subsequent interview, agents asked Abood again about his attempted travel — specifically asking if he intended to go to Syria to fight, and Abood stated that was not his intent. Later in that interview, however, Abood admitted that his intent on March 29, 2013, was to go to Syria to fight against the Assad regime, claiming he wanted to fight with the Free Syrian Army (FSA).

On approximately April 29, 2013, Abood left the United States through Mexico and traveled through various countries into Turkey. Upon Abood’s return to the United States on Sept. 16, 2013, the FBI interviewed him again. In that interview, Abood admitted traveling to Syria through Turkey, and claimed that he went there to fight with the FSA and that he had stayed in an FSA camp. Abood stated that he became frustrated with a lack of action and wanted to return to the United States. He denied ever providing financial support to al-Nusrah Front (ANF), the Islamic State of Iraq and the Levant (ISIL) or any other terrorist organization.

A review of Abood’s computer on July 9, 2014, pursuant to a federal search warrant, revealed Abood pledged an oath to Abu Bakr al-Baghdadi, the leader of ISIL, on June 19, 2014. The search warrant also revealed that Abood had been on the internet viewing ISIL atrocities such as beheadings, and had used his twitter account to tweet and retweet information on al-Baghdadi.

On April 14, 2015, FBI agents went to Abood’s residence to return his computer that was seized in the 2014 search warrant. Abood admitted to the agents that he knew it was a crime to lie to an FBI agent, and Abood denied to the agents that he had ever pledged allegiance to al-Baghdadi.

An indictment is an accusation by a federal grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. However, if convicted, Abood faces a maximum statutory sentence of eight years in federal prison and a $250,000 fine.

The case is being investigated by FBI’s Dallas Division. The prosecution is being handled by the U.S. Attorney’s Office for the Northern District of Texas, with assistance from the National Security Division’s Counterterrorism Section.

ABILENE, Texas — A convicted felon from Abilene, Texas, who pleaded guilty to a federal firearm offense, was sentenced today, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.

Brandon Joseph Cormier, 26, was sentenced to 120 months in federal prison by Chief U.S. District Judge Jorge A. Solis. Cormier pleaded guilty in February 2015 to an indictment charging one count of being a felon in possession of a firearm.

According to documents filed in the case and information presented during court hearings, Cormier admitted that he is a convicted felon and that on September 10, 2014, he knowingly possessed a Bersa, 380 Plus, .380 caliber semi-automatic pistol. That same day, Cormier was allegedly involved in a shooting following a traffic stop by a Texas Department of Public Safety (DPS) officer in Nolan County. During that stop, Cormier allegedly retrieved a firearm from his vehicle and fired shots at the DPS officer.

The Texas Ranger Division of the Texas DPS and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Juanita Fielden prosecuted.

DALLAS — A former youth minister in Garland, Texas, pleaded guilty yesterday to a federal child enticement offense, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.

Derek Hutter, 37, appeared before U.S. Magistrate Judge David L. Horan and pleaded guilty to a superseding information charging one count of enticement of a minor. He faces a statutory penalty of not less than 10 years and up to life in federal prison and a $250,000 fine. Hutter has been in custody since his arrest in December 2014. A sentencing date was not set.

According to plea documents filed in the case, Hutter worked as a youth minister at the South Garland Baptist Church. He used the Internet, his cell phone and email, as well as person-to-person contact at youth group, to communicate with Jane Doe, a minor girl in his youth group. During these conversations, he convinced Jane Doe to have a sexual relationship with him. Hutter sexually assaulted Jane Doe on several occasions between January 1, 2014, through approximately September 15, 2014.

In addition, according to the filed factual resume, Hutter emailed Jane Doe and asked that she send him explicit and lewd photos of herself.

Hutter admitted that he knew Jane Doe was between age 13 and 14.

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 Sachse Police Department, the Garland Police Department and the FBI investigated. Assistant U.S. Attorney Camille Sparks is in charge of the prosecution.

ABILENE, Texas — Four defendants who have been convicted for their respective roles in a marijuana distribution conspiracy have been sentenced this week, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.

Three of those defendants, who were convicted after a five-day jury trial in February 2015, were sentenced yesterday, and one, who pleaded guilty to his role, was sentenced today.

Chief U.S. District Judge Jorge A. Solis sentenced Abilene, Texas, residents Jose Cavazos, 51, to 108 months in federal prison; Travis Kyndall Longoria, 22, to 120 months in federal prison; and David Rodriguez, 25, to 30 months in federal prison. Today, Judge Solis sentenced Brandon Johnson, 35, of Sweetwater, Texas, to 90 months in federal prison.

Daniel Longoria, 49, of Abilene, who was also convicted at trial, will be sentenced later, as will Fabricio Abelardo Perez, 43, of Abilene, who pleaded guilty to his role in the conspiracy.

Daniel Longoria, Cavazos, and Travis Longoria were each convicted at trial on an indictment charging one count of conspiracy to distribute and possess with intent to distribute 100 kilograms or more of marijuana. Rodriguez was found guilty at trial of the lesser charge of conspiracy to distribute and possess with intent to distribute less than 50 kilograms of marijuana. In January 2015, Perez and Johnson each pleaded guilty to the indictment.

According to evidence presented at trial and filed court documents, the investigation into the Daniel Longoria Drug Trafficking Organization (DTO) began when the Abilene Police Department learned that, since 2004, Daniel Longoria had been distributing marijuana from his business, Abilene Automotive and Performance. Daniel Longoria concealed marijuana in speaker boxes, and placed the speakers in vehicles so that the marijuana could be distributed throughout Abilene. Daniel Longoria also used vehicles that had been left at his business to conceal and transport large sums of bulk cash back to the DTO’s supply source in Mexico. All six defendants conspired together and worked together to transport and distribute large quantities of marijuana in Abilene.

The Abilene Police Department, the Texas Department of Public Safety and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated. Assistant U.S. Attorney Juanita Fielden and Deputy Criminal Chief Assistant U.S. Attorney Denise Williams prosecuted.

ABILENE, Texas — A married couple from Abilene, Texas, was sentenced today following their guilty pleas earlier this year to drug distribution and conspiracy charges, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.

Chief U.S. District Judge Jorge A. Solis sentenced Juan Jose Torres a.k.a. “Nano”, 39, to 168 months in federal prison, and he sentenced Anna Lisa Torres, 30, to 24 months in federal prison. Each pleaded guilty earlier this year to one count of conspiracy to distribute and to possess with the intent to distribute 50 grams or more of methamphetamine. Juan Torres has been in custody since his arrest in September 2014. Judge Solis ordered Anna Torres to surrender to the Bureau of Prisons on July 15, 2015.

According to documents filed in their case, Juan and Anna Torres conspired with each other, and with others, to distribute and to possess with the intent to distribute 50 grams or more of methamphetamine. On May 16, 2014, Juan and Anna Torres met an individual at an agreed-upon parking lot where Juan Torres provided the buyer with two clear plastic baggies of methamphetamine. Then, on May 21, 2014, Juan Torres told a buyer who had asked for a full ounce of methamphetamine that he did not have that amount, but he could get him an “8-ball.” Juan Torres advised that his son (age 13) got out of school at 3:30 p.m., and the buyer could get it from him. That afternoon, the buyer went to the Torres’ home, and the son sold the buyer 3.8 grams of methamphetamine in exchange for $160.

The Texas Department of Public Safety, the Abilene Police Department and the FBI investigated. Assistant U.S. Attorney Juanita Fielden prosecuted.

DALLAS — A Mansfield, Texas, woman who pleaded guilty earlier this year to one count of food stamp benefit fraud, was sentenced today, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.

Rachel Hardy, 36, was sentenced by U.S. District Judge Barbara M. G. Lynn to 21 months in federal prison and ordered to pay $76,494 in restitution. Judge Lynn ordered that she surrender to the Bureau of Prisons on August 4, 2015.

The U.S. Department of Agriculture’s (USDA) Food Stamp Program is known as the Supplemental Nutritional Assistance Program (SNAP). The Texas Health and Human Services Commission (THHSC) administers SNAP in Texas.

The investigation began in 2012 when the Southwest Region USDA, Office of the Inspector General, received a referral about an individual who was receiving SNAP benefits who had failed to disclose a change in household composition and income from the ownership of two businesses. That individual was later identified as Hardy.

The investigation revealed that Hardy and her husband, who is the father of her youngest child, were married on February 14, 2010, in Las Vegas, Nevada. On April 8, 2010, Hardy submitted a SNAP benefits application, certifying she was a “single-parent-mother,” with no income, living in a household that consisted only of her children. Hardy’s application was approved, and she began receiving SNAP benefits.

On December 1, 2010, Hardy registered with Tarrant County as the owner operator of a tax refund and estate planning business called “Mighty Dollar Tax,” in Arlington, Texas. From April 8, 2010, through June 5, 2011, Hardy completed and submitted THHSC certifications reporting no income and claiming to live alone with her children.

On February 21, 2011, Hardy purchased a 2006 H2 Hummer for $26,000 and a 2008 Mercedes Benz CL S500 sedan for $41,700; she paid for each with a cashier’s check. At the time she purchased these vehicles, Hardy reported to THHSC that she was an unemployed, single-parent-mother living alone at home with her children.

An April 19, 2011, Hardy registered with Tarrant County as the owner operator of the Johnson Family Mortuary in Fort Worth, Texas. Again, on June 14, 2011, Hardy reported to THHSC that she was an unemployed single-parent-mother living alone at home with her children.

That same day, Hardy went to the Dallas County THHSC office where she completed and submitted a THHSC Application for Assistance Form. In doing so, she certified she was a “single-parent-mother” with no income living in a household that consisted only of her children.

On February 11, 2012, Hardy purchased a 2008 Land Rover Range Rover from Park Place Motors with a $53,000 cashier’s check. A few days later, on February 22, 2012, Hardy again certified to THHSC that she was an unemployed single-parent-mother living at home with her children.

The THHSC re-certifications and interviews revealed Hardy neither claimed a spouse nor any other income provided to her, or to anyone else in the household. Hardy admits that she failed to disclose material facts to THHSC and admits unlawfully receiving SNAP benefits to which she was not entitled.

The Texas Housing and Neighborhood Services; THHSC, OIG; USDA, OIG; U.S. Department of Housing and Urban Development, OIG; and U.S. Department of Education, OIG investigated.

Assistant U.S. Attorney Aaron Wiley prosecuted.

DALLAS — Two individuals, who were arrested during a November 2014 law enforcement operation in which 37 individuals were charged with felony offenses stemming from their respective roles in a drug distribution conspiracy that operated in North Texas and elsewhere from January 2013 to October 2014, have been sentenced to lengthy federal prison sentences. John Parker, the Acting U.S. Attorney for the Northern District of Texas, made the announcement today.

Brandon Crow, 30, of Garland, Texas, was sentenced on Thursday to 240 months in federal prison and Rhonda Long, a/k/a “Queen Saltine,” 51, of Mesquite, Texas, was sentenced to 188 months in federal prison. Each pleaded guilty in January 2015 to one count of possession of a controlled substance (methamphetamine) with the intent to distribute that controlled substance.

The Texas Department of Public Safety Criminal Investigations Division (DPS-CID) led that November 2014 law enforcement operation in which the defendants were alleged to be members of, or associated with, various white supremacist organizations, including the “Aryan Brotherhood of Texas” (ABT), the “Aryan Circle,” the “Irish Mob,” and the “Dirty White Boys.” Despite their differences, they would often collaborate for purposes of drug distribution or other illegal ventures. The indictment alleged that since January 2013, the defendants conspired together, and with others, to possess with intent to distribute 500 grams or more of methamphetamine. According to the indictment, the defendants used stash houses and other locations to store the quantities of methamphetamine. Each co-conspirator was linked to one another either directly or through another co-conspirator. Certain co-conspirators acted as hubs for narcotics trafficking, supplying methamphetamine to numerous other co-conspirators. Throughout the investigation, over 16 pounds of methamphetamine and five firearms were seized.

To date, 34 of the 37 charged defendants have pleaded guilty and 12 of those have been sentenced. Other defendants, all Dallas residents, receiving long prison sentences for their roles include:

William McDowell, a/k/a “Scout,” 33, of Mesquite, Texas; 188 months

Christy McCellon, a/k/a “90,” 38; of Quitman, Texas, 222 months

Eliezer Jarillo Gonzalez, 22, of Dallas, 180 months

Javier Dominguez, 23, of Dallas, 120 months

Another defendant is scheduled to enter a guilty plea next week, one defendant remains set for trial, and one defendant remains a fugitive.

The investigation is being led by the DPS-CID Gang Unit and the Dallas Police Department Criminal Intelligence Unit with assistance from the Garland Police Department Neighborhood Police Officer Unit, the Mesquite and Rockwall Police Departments and U.S. Immigration and Customs Enforcement Homeland Security Investigations..

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

FORT WORTH, Texas — A California man who pleaded guilty earlier this year to one count of wire fraud stemming from a Ponzi scheme he ran that defrauded investors in North Texas and throughout the country, was sentenced today, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.

Piyush Bachubhai Patel, 54, most recently of Clovis, California, was sentenced to 51 months in federal prison and ordered to pay approximately $700,000 in restitution by U.S. District Judge Reed C. O’Connor. Judge O’Connor ordered that he surrender to the Bureau of Prisons on June 30, 2015.

According to documents filed in the case, from approximately January 1, 2008 through 2013, Patel, who represented himself as an investment consultant, d/b/a Elite Financial Services and 777 Consulting Services, devised and ran a scheme in which he solicited and obtained money from victim investors. As part of his scheme, he made false representations including how their money would be invested, how much of their money would be invested, and how much money they had in their accounts.

Patel told one particular investor that he had more than 50 investors in his stock investment plan and that his investments had realized annual returns of 89% over the last three years. Based on Patel’s representations, this investor decided to invest with Patel, and wired nearly $250,000 to Patel.

After Patel received this investor’s money, he did not invest it as he stated he would. Instead, Patel used a significant portion of the money to pay personal expenses, pay down loans, and obtain cash. Patel then proceeded to lose most of the money that he did invest.

Even though Patel used a large portion of this investor’s money for personal expenses and lost more than $100,000 of it by day-trading, Patel emailed account statements to this investor falsely representing that the investor’s account balance had appreciated to nearly $300,000. However, on the date of those statements, there was only approximately $40,000 in the investor’s account.

Based on false account statements, this victim investor decided to invest an additional $90,000 with Patel. Once again, Patel used a large portion of the money to pay personal expenses and debts, and lost most of the money that he did invest. By February 2011, the approximate balance in the investor’s account was only $10,000.

In the following months, Patel falsely told the investor that his account balance had grown to over $470,000. In May 2011, this investor contacted Patel and advised he wanted to make an immediate $20,000 withdrawal and schedule monthly $9,000 disbursements from the account. Patel agreed to send the money as requested but advised that he could not send it until June. When the investor did not receive the money in June, he again contacted Patel. In late July 2011, Patel deposited $20,000 into this investor’s bank account, but he never sent the investor monthly disbursements. Despite repeated attempts, the investor never received any additional funds from Patel.

During the course of his scheme, Patel also solicited and obtained money from other victim investors using tactics similar to those described above. Patel also deceived these victim investors about the amount of their money that was, or would be, invested, as well as the value of their accounts.

The FBI investigated the case.

LUBBOCK, Texas — The owner and operator of a construction company in Lubbock, Texas, was sentenced today following his guilty plea last year to an information charging one count of fraud and false statements, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.

Brian Ritter was sentenced to 16 months in federal prison by U.S. District Judge Sam R. Cummings, and he was ordered to surrender to the Bureau of Prisons on July 10, 2015.

According to a final judgment of forfeiture entered in the related civil forfeiture case, Ritter must forfeit a total of $366,246.57 seized by the government, as well as eight firearms and 274 rounds of ammunition that were also seized.

According to the factual resume filed in the case, Ritter owns and operates Brian Ritter Construction, Inc. in Lubbock. In 2011, Ritter cashed 63 checks, totaling approximately $213,493.16 that his business had received for payment for services. The currency was stored in Ritter’s residence until he decided to deposit the funds in 2012 and 2013.

The factual resume further states that while Ritter timely filed his federal income tax return for 2011, he willfully omitted income of approximately $213,493.16, knowing he made a materially false statement with regard to his income.

According to the complaint for forfeiture in rem filed in the related civil case, beginning on January 25, 2012 and continuing through May 4, 2012, Ritter made 33 structured currency deposits, totally $275,200 into an account, in the name of Brian Ritter Construction, Inc., at First Capital Bank of Texas. All of these structured deposits were in even dollar amounts, such as $6,000; $8,000; $9,000; and $9,500 and 28 of the 33 cash deposits were single deposits, that is, one deposit made each day. Between February 1, 2012, and May 4, 2012, five structured currency deposits, totaling $9,950.00, were made into another account, in the name of The Ritter Family Trust, at First Capital Bank of Texas.

In March 21, 2013, pursuant to a seizure warrant, agents with Internal Revenue Service (IRS) Criminal Investigation (CI) seized $186,146.57 contained in an account, in the name of Brian Ritter Construction, Inc., at First Capital Bank of Texas.

That same day, according to the complaint, IRSCI agents executed a search warrant at the Ritter residence in Lubbock, and seized a bag containing $180,100 in cash, bundled in $10,000 increments, from Brian and Ginger Ritter’s bedroom closet. During the execution of this search warrant, agents also discovered numerous syringes and bottles containing liquids, confirmed later by the Drug Enforcement Administration’s laboratory as anabolic steroids. Next to the steroids were ledgers and logs appearing to outline an individual’s steroid use. Agents also seized eight firearms and 274 rounds of ammunition.

IRS-CI investigated the case. Assistant U.S. Attorney Brian Poe prosecuted.

AMARILLO, Texas — Following a four-day trial before U.S. District Judge Mary Lou Robinson, a federal jury has convicted a Fort Worth, Texas, man on the felony offense of interference with a flight crew, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.

The jury deliberated less than three hours before convicting Zachary Marshall Ziba, 25, on the charge that was outlined in an indictment returned in February 2015 in Amarillo. Ziba, who will remain on bond, faces a maximum statutory penalty of 20 years in federal prison and a $250,000 fine.

The government presented evidence at trial that on January 18, 2015, Ziba was on Southwest Airlines Flight 958 from Denver, Colorado, to Dallas. During that flight, Ziba intimidated a flight attendant and a flight crewmember by being disruptive, disobedient and by screaming profanities. The flight was diverted to Amarillo so that law enforcement could remove Ziba from the flight.

The FBI, the Amarillo Police Department and Rick Husband Amarillo International Airport Police investigated. Assistant U.S. Attorneys Joshua Frausto and Timothy Hammer are prosecuting the case.

DALLAS — Keith Renard Simon, 20, who admitted committing several armed robberies of businesses in the Dallas area in November 2013, was sentenced today by U.S. District Judge Sidney A. Fitzwater to 189 months in federal prison, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.

In October 2014, Simon pleaded guilty to three counts of interference with commerce by robbery. Co-defendant Lorenza Anzley, 21, pleaded guilty at the same time to the same offenses, and co-defendant James Montreal Tyson, 19, pleaded guilty to one count of the offense. Anzley was sentenced last month to 189 months in federal prison and ordered to pay $16,560 in restitution. Tyson was sentenced in October 2014 to 46 months in federal prison and ordered to pay $5,570 in restitution.

According to documents filed in the case, Simon, Anzley and Tyson admitted committing the November 11, 2013, robbery of Walgreens, located at 1060 West Camp Wisdom Road in Dallas. Simon brandished a dangerous weapon during this robbery.

Simon and Anzley admitted committing the November 23, 2013, robbery of Metro PCS, located at 2614 Martin Luther King Jr. Boulevard in Dallas. During that robbery, Simon and Anzley entered the store at approximately 3:15 p.m., with the intent to rob it. Simon produced a dangerous weapon, pointed it at two employees, and he and Ansley jumped over the counter. They demanded money and ordered the employees to get on the floor. When Anzley could not get the register open, he struck one of the employees in the face and back of the head with the weapon.

Simon and Anzley also admitted committing the November 24, 2013, robbery of Metro PCS, located at 2864 South Buckner Boulevard in Dallas. During this robbery, Simon brandished a dangerous weapon and struck one of the store’s employees with it.

While Simon and Anzley were not charged with additional robberies, Simon stipulated to their roles in two additional robberies: the November 20, 2013, robbery of Family Dollar, located at 2683 Cedar Crest Boulevard in Dallas and the November 29, 2013, robbery of Metro PCS, located at 9625 Plano Road in Dallas. During this Family Dollar robbery, Simon and Anzley ordered the store employees and customers to the floor at gunpoint. During this Metro PCS robbery, Simon pointed a dangerous weapon at employees, demanded money, and then ordered them into the back room.

The FBI and the Dallas Police Department investigated the case. Assistant U.S. Attorney Keith Robinson prosecuted.

DALLAS — A Mesquite, Texas, man, who, along with his co-conspirator admitted committing the armed robberies of several jewelry stores in the Dallas - Fort Worth (DFW) area, was sentenced this morning to a lengthy federal prison sentence, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.

Mark D. Whitfield, 36, was sentenced to serve a total of 309 months in federal prison by U.S. District Judge Sidney A. Fitzwater. Whitfield pleaded guilty in September 2014 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 a crime of violence.

Last month, his co-conspirator, Michael Demon Jackson, 37, of Dallas, was sentenced by Judge Fitzwater to serve a total of 594 months in federal prison. Jackson pleaded guilty in November 2014 to the conspiracy count and two counts of using, carrying, and brandishing a firearm during and in relation to a crime of violence.

According to documents filed in the case, from approximately October 18, 2013, to May 22, 2014, Whitfield and Jackson conspired to rob, and did rob, the below-listed jewelry stores located in shopping malls in the DFW area, of more than $400,000 of jewelry:

October 18, 2013 and February 4, 2014 - Marquise Jewelers in Valley View Mall, 13331 Preston Road, Dallas

February 24, 2014 - Classic Jewelers in Vista Ridge Mall, 2401 South Interstate 35-E, Lewisville, Texas

April 29, 2014 - Gianni’s Jewelers in Vista Ridge Mall, 2401 South Interstate 35-E, Lewisville, Texas

May 20, 2014 - Benson’s Jewelers in The Parks at Arlington Mall, 3811 South Cooper Street, Arlington, Texas

During each of the two Marquise Jewelers robberies, Whitfield distracted a store employee by pretending to be interested in buying jewelry and asking the store employee to show him merchandise in the display cases. Once the employee was distracted and the display case opened, Jackson went around the counter and, in one robbery, held a firearm to the employee’s head and threatened to kill her, and in the other robbery, pushed the employee to the floor, held a firearm to her head and, again, threatened to kill her.

During each of the other robberies, the defendants committed and threatened physical violence with a firearm.

The FBI investigated the case. Deputy Criminal Chief Assistant U.S. Attorney Lisa Miller prosecuted.

DALLAS — A Dallas man who admitted robbing five banks in the DFW metroplex in September 2014 was sentenced this afternoon, announced Acting U.S. Attorney John Parker of the Northern District of Texas.

Michael Bennett Smith, 44, was sentenced to 71 months in federal prison by U.S. District Judge Jane J. Boyle. He has been in custody since his arrest shortly after committing his last bank robbery.

Smith pleaded guilty to five counts of bank robbery, admitting committing the following bank robberies:

September 2, 2014 - Commercial Bank of Texas, 721 South Central Expressway, Allen, Texas

September 6, 2014 - BBVA Compass Bank, 484 East Round Grove Road, Lewisville, Texas

September 8, 2014 - Wells Fargo Bank, 4771 Saturn Road, Garland, Texas

September 11, 2014 - Wells Fargo Bank, 4703 State Highway 121, The Colony, Texas

September 18, 2014 - Wells Fargo Bank, 1727 South Loop 288, Denton, Texas

The FBI Dallas Violent Crimes Task Force investigated, with assistance from Allen, The Colony, Denton, Garland and Lewisville Police Departments. Assistant U.S. Attorney Keith Robinson prosecuted.

DALLAS — A former resident of Garland, Texas, who pleaded guilty earlier this year to an indictment charging one count of aiming a laser pointer at an aircraft, was sentenced today, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.

Steven Alexander Chavez, Jr., 23, was sentenced by Chief U.S. District Judge Jorge A. Solis to eight months in federal prison.

According to documents filed in the case, in August 2013, Chavez knowingly aimed the beam of a laser at a Texas Department of Public Safety (DPS) helicopter. Chavez aimed the laser at the helicopter from the backyard of a friend, while the helicopter was flying overhead.

A few days later, special agents with the FBI arrested Chavez in Lubbock, Texas, where he had recently relocated from Garland. Following his initial court appearance, he was released on bond.

The FBI, Texas DPS and Garland Police Department investigated. Special Assistant U.S. Attorney Lara Burns prosecuted.

DALLAS — The wife of a former executive at the Collin Street Bakery (Bakery) in Corsicana, Texas, appeared Friday before U.S. Magistrate Judge Paul D. Stickney and entered a guilty plea to a conspiracy offense stemming from her husband’s admitted $16 million embezzlement from the Bakery, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.

Kay Jenkins, 64, of Corsicana, pleaded guilty to one count of conspiracy to commit money laundering. The maximum statutory penalty for that offense is 10 years in federal prison and a fine not to exceed $250,000 or the pecuniary gain to the defendant or loss to the defendant. However, according to plea documents filed in her case, if the Court accepts the plea agreement, the parties agree that the appropriate maximum term of imprisonment is 36 months’ imprisonment. Kay Jenkins remains on bond pending sentencing set for September 16, 2015, before U.S. District Judge Ed Kinkeade.

Jenkins’ husband, Sandy Jenkins, 66, who remains in federal custody, served as the Corporate Controller for the Bakery from February 1998 to June 21, 2013. He was terminated on June 21, 2013, after the Bakery discovered the fraud. He pleaded guilty in May 2014 to one count of mail fraud, one count of conspiracy to commit money laundering, and one count of making a false statement to a financial institution. He faces the following maximum statutory penalties: 20 years in federal prison and a $250,000 fine on the mail fraud conviction; 10 years in federal prison and a $1 million fine on the conspiracy conviction; and 30 years in federal prison and $1.5 million fine on the false statements conviction. He also agreed to a forfeiture money judgment against him of at least $16,649,786, and he agreed to pay full restitution to the Bakery for the entire scope of his criminal conduct. He is scheduled to be sentenced on June 24, 2015, by Judge Kinkeade.

According to plea documents filed in Kay Jenkins’s case, she agreed that the government could readily prove at trial that beginning at least as early as December 2004, and continuing until his termination from the Bakery in June 2013, Sandy Jenkins engaged in a massive scheme to defraud the Bakery in order to financially benefit he and his wife. Over the course of time, Sandy Jenkins embezzled more than $16 million from the Bakery that was used to fund an extravagant lifestyle for the couple. Kay Jenkins did not participate in the embezzlement of funds from the Bakery.

Kay Jenkins admitted that during this period she conspired with her husband to engage in monetary transactions with property derived from a criminal activity. Kay Jenkins agreed that the government could readily prove at trial that the funds involved in these monetary transactions were derived from her husband’s embezzlement of funds from the Bakery.

Starting in approximately 1998, Sandy Jenkins began working at the Bakery with an annual salary of approximately $25,000. In approximately 2000, Sandy Jenkins was promoted to Controller, a position he held until his termination. At no point during his employment at the Bakery did his salary exceed approximately $50,000 per year. Beginning at the approximate time Sandy Jenkins began embezzling money from the Bakery, Kay Jenkins did not work outside of the home. She knew that their income was insufficient to pay for their extravagant lifestyle.

Sandy and Kay Jenkins primarily spent the embezzled funds by making charges on an American Express Centurion credit card that charges a $2,500 yearly service fee but has no credit limit. Both Sandy and Kay Jenkins had these cards, and between 2005 and 2013, they incurred charges totaling approximately $11,120,449 with American Express. Kay Jenkins admits that Sandy Jenkins paid the American Express bill at the end of each billing period using embezzled funds from the Bakery.

Between 2005 and 2013, Sandy and Kay Jenkins incurred charges totaling approximately $1,941,596 on Citibank credit cards and charges totaling approximately $1,196,773 on a Neiman Marcus credit card. Kay Jenkins further admits that she and Sandy Jenkins purchased significant amounts of watches, jewelry and other precious items.

While Sandy Jenkins never specifically discussed with Kay Jenkins that he was embezzling funds from the Bakery, Kay Jenkins admits she deliberately closed her eyes to what would otherwise have been obvious to her. Kay Jenkins knew that Sandy Jenkins provided different explanations to different people when attempting to explain the source of funds, and she knew that some of those explanations were false.

The FBI conducted the investigation. Assistant U.S. Attorney J. Nicholas Bunch is in charge of the prosecution and Assistant U.S. Attorney Melissa Childs is handling the forfeiture.

DALLAS — Three individuals have been arrested on an indictment, unsealed on Friday, charging one count of conspiracy to commit money laundering stemming from their scheme to steal personal identifying information, use it to fraudulently obtain income tax refunds, and then launder those funds, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.

Latonya Lanette Carson, 41, Ricardo Garth Solomon, 49, and Smith Olsola Akin, 32, have made their initial appearances in federal court and each remains in custody. A detention hearing is set for this afternoon for Carson. Another defendant, Segun Edomwonyi, a/k/a “Benny O. Prince,” 49, has not been apprehended.

The indictment alleges that the defendants’ scheme began in 2010. They allegedly obtained stolen names and other personal identifying information and used that information to create fraudulent tax returns claiming fraudulent refunds. They electronically filed the fraudulent returns with the Internal Revenue Service (IRS) and directed the refunds to be deposited onto reloadable debit cards they had purchased and registered online in the names of the identity victims. The defendants then used these debit cards, funded by the fraudulent income tax refunds, to obtain cash and purchase used cars from wholesale dealers in Dallas County.

Over the course of the conspiracy, according to the indictment, the defendants established several bank accounts in the names of businesses that purportedly operated as used car businesses. Nearly 2000 money orders and checks, purchased in part with the proceeds from the fraudulently filed income tax returns, were deposited into these accounts.

The indictment alleges that between May 2012 and May 2014, the defendants and their conspirators paid $1,184,950 from these accounts to purchase used cars from wholesale dealer auctions in Dallas County, and that between January 2012 and January 2015, the defendants and their conspirators exported approximately 204 used cars to Nigeria.

The FBI, IRS Criminal Investigation, U.S Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), U.S. Secret Service and the Texas Department of Public Safety investigated. Assistant U.S. Attorney Christopher Stokes is in charge of the prosecution.

DALLAS — Sixteen defendants have been charged in a federal indictment, partially unsealed yesterday, with felony offenses stemming from their role in a cocaine and crack cocaine distribution conspiracy, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.

The defendants, most from north Texas and Oklahoma, were arrested Wednesday 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. Each made his initial appearance in federal court yesterday. Some were released on bond, and others are scheduled for detention hearings today and early next week.

The indictment charges each of the below-listed defendants with one count of conspiracy to distribute cocaine base (crack cocaine) and one count of conspiracy to distribute cocaine.

Acacedric Rashod Ware, a/k/a “CD,” 37

Al Torrell Beasley, a/k/a “Rody,” 38

Alondo Wheeler, a/k/a “Lil Dude,” 34

Chester Brown, a/k/a “Baldy,” 40

Christopher Johnson, a/k/a “1800,” 43

Frederick Glennard Brown, a/k/a “Phillip Edwards,” “Moe Curly,” and “Chester Brown,” 39

Jalisa Camille Shields, 27

Maurice Demon Bagley, a/k/a “Money Bags,” 31

Michael Seamster, a/k/a “Little Wanky,” 42

Norberta Annette Ramsey, 43

Omar Sharif Cole, a/k/a “Baby Loc,” 38

Quincy Deon Denby, 33

Raul Alvarado, 34

Roger Deundrea Jackson, a/k/a “Boo-Cat” and “Cat,” 40

Sherman Grant, a/k/a “Tank,” 45

Shirley Delois Young, a/k/a “Shirley Bird,” 45

Count One of the indictment alleges that since approximately January 2013, the defendants conspired together and with others to possess with the intent to distribute and to distribute a mixture or substance containing a detectable amount of cocaine base (crack cocaine).

Count Two of the indictment alleges that during the same period, the defendants conspired together and with others to possess with the intent to distribute and to distribute a mixture or substance containing a detectable amount of cocaine, its salt, optical and geometric isomers, and salts of isomers.

A federal indictment is an accusation by a grand jury. A defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, each count carries a maximum statutory penalty of 20 years in federal prison and a $1 million fine.

Assistant U.S. Attorney Phelesa Guy is prosecuting.

LUBBOCK, Texas — A 53-year-old League City, Texas, man, Nilanjan Brahma, was sentenced today by U.S. District Judge Sam R. Cummings to 21 months in federal prison, following his guilty plea in October 2014 to one count of attempted transfer of obscene materials to a minor, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.

Brahma must surrender to the Bureau of Prisons on July 6, 2015.

According to plea documents filed in the case, from approximately April 25, 2011, through February 19, 2012, Brahma engaged in a series of communications, via messaging, texting, and telephone, with a person he believed to be a 13-year-old female, “Jane Doe,” who represented that she lived in Lubbock, Texas. In fact, Jane Doe was an undercover officer with the Lubbock Police Department.

On April 25, 2011, Brahma chatted with Jane Doe and sent her nine photographs. Five of those photographs depict an adult male engaged in sexually explicit conduct and are considered obscene.

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 Lubbock Police Department, the FBI, and the League City Police Department investigated the case. Assistant U.S. Attorney Steven M. Sucsy prosecuted.

DALLAS — Two Arlington, Texas, residents who were convicted at trial in January 2014 on all counts of a superseding indictment charging them with one count of conspiracy to commit health care fraud and seven substantive health care fraud counts, were sentenced today, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.

Pamela Adenuga, 39, was sentenced to 121 months in federal prison, and her husband, Kehinde (Kenny) Adenuga, 46, was sentenced to 60 months in federal prison. In addition, Chief U.S. District Judge Jorge A. Solis ordered the couple to pay $166,653 in restitution.

Since approximately 2007, the Adenugas were the co-owners and operators of His Grace Medical Supply & More (HGMS), located in Arlington. The business also consisted of a lab component that drew and tested blood for Medicare and Medicaid beneficiaries. The defendants’ business was primarily adult incontinence supplies (diapers, wipes, cream, etc.). In fact, 98% of their business was billing Medicaid for these supplies.

Evidence revealed HGMS billed for incontinence supplies for beneficiaries who did not need them or HGMS never delivered the supplies. HGMS falsified files with forged prescriptions from doctors and forged delivery receipts of beneficiaries. The investigation revealed that HGMS billed in excess of $2.6 million solely for adult incontinence supplies.

During trial, the government called doctors and Medicaid beneficiaries to testify that the documents found at HGMS during a search were false and fraudulent.

Dozens of other doctor forgeries were found at HGMS. These forgeries were accompanied by affidavits prepared by the defendants to attest to the accuracy of patient files that were the subject of a Medicaid audit. Medicaid had identified some issues with HGMS billing in 2010, and asked HGMS to substantiate its claims with proper documentation. This documentation was forged and false. More than 100 of those affidavits were prepared on the same day and notarized by a parent of one of the defendants.

The investigation was conducted by U.S. Department of Health and Human Services - Office of Inspector General, the FBI and the Medicaid Fraud Control Unit of the Office of the Attorney General of Texas. Assistant U.S. Michael C. Elliott prosecuted.

AMARILLO, Texas — Three men who were charged with various felony offenses stemming from an alleged heist of money from an armored car on December 22, 2014, in Amarillo, Texas, appeared in federal court yesterday, before U.S. District Judge Mary Lou Robinson, and pleaded guilty to their respective roles, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.

Trent Michael Cook, 24, Britt Michael Gresham, 24, and Cook’s father, Brian Keith Hodge, 43, each pleaded guilty to one count of conspiracy to interfere with commerce by robbery. Each faces a statutory maximum penalty of 20 years in federal prison and a $250,000 fine. Sentencing is set for August 4, 2015.

According to documents filed in the case, Cook purchased firearms that Cook, Gresham, and Hodge planned to use to rob the vault of Rochester Armored in Amarillo on December 20, 2014. The plan involved Cook using his status as an employee of Rochester Armored to gain access to the company vault that contained millions of dollars in U.S. currency so that the three defendants could commit the armed robbery of Rochester Armored. Cook and Gresham also purchased a van to load and transport bags of U.S. currency taken from Rochester Armored.

Hodge further attempted to obtain a location in Colorado for the defendants to hide after the robbery; in fact, Cook and Gresham were arrested in Colorado Springs, Colorado. When questioned by a Colorado Springs Police Department detective, Cook admitted that he and Gresham stole the money from the Rochester armored car on December 22, 2014. Cook also admitted to initially agreeing with Gresham and Hodge to rob the Rochester vault, which they planned to do on December 20, 2014. Cook admitted they were all armed with Smith and Wesson, Model M&P, 9 millimeter caliber pistols when they went to Rochester on December 20, 2014 to attempt the robbery. Cook said they were not able to complete the robbery because there were additional employees at Rochester that he did not expect, and he notified Gresham and Hodge who were parked outside. Cook also said the white Ford Van was to be used to load up the money and other items to take to Colorado.

Court documents further state that after the defendants were not able to rob the vault, Cook and Gresham decided to steal money from a Rochester armored car, which they did.

The Amarillo Police Department, the Colorado Springs Police Department, the Potter County District Attorney’s Office and the FBI investigated the case. Assistant U.S. Attorney Tim Hammer is in charge of the prosecution.

DALLAS — A 28-year-old Dallas man appeared in federal court yesterday before U.S. Magistrate Judge David L. Horan and pleaded guilty to a felony drug offense stemming from his role in the March 2014 heroin overdose death of a Dallas teenage girl, Rian Hannah Lashley, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.

Glen William Brunton, 28, pleaded guilty to one count of conspiracy to possess with the intent to distribute heroin. He faces a maximum statutory sentence of 20 years in federal prison and a $1 million fine. Brunton is the second of four defendants charged in the case to plead guilty. In March, Cierra Allyn Rounds, 27, pleaded guilty to the same offense. Brunton is scheduled to be sentenced by U.S. District Judge Sam A. Lindsay on October 5, 2015; Rounds is set for sentencing on September 8, 2015. Both remain in federal custody.

“The statistics are staggering – in 2013 more than 680,000 Americans used heroin; more than 8,200 Americans died of a heroin overdose; and more than 160,000 Americans tried heroin for the first time, including more than 20,000 children between ages 12 and 17,” said Acting U.S. Attorney Parker. “That’s why, in an effort to develop a coordinated response to this crisis, the Department of Justice created the Attorney General’s Heroin Task Force to bring together experts from law enforcement, medicine, public health, and education to create a strategic plan outlining national, regional and local efforts to reduce both the supply and demand for heroin,” Parker continued.

The two other defendants charged in the case, Kathryn Grace Dirks, a/k/a “Kat,” 25, and Jimison Erik Coleman, a/k/a “Jaymo,” 36, are each charged in a superseding indictment with one count of conspiracy to possess with the intent to distribute heroin; one count of possession of heroin with the intent to distribute, the use of said substance resulting in the death and serious bodily injury of Rian Hannah Lashley; and one count of distribution of heroin, the use of said substance resulting in the death and serious bodily injury of Rian Hannah Lashley. Both Dirks and Coleman were arrested in California and remain in federal custody. Their trial date has not yet been set.

According to documents filed in the case, during the early morning hours of March 25, 2014, Brunton and Rounds traveled from a residence in Dallas to an IHOP restaurant in Plano, Texas. After arriving at the restaurant, Brunton and Rounds joined co-defendants Dirks and Coleman (a local heroin distributor who was involved with Dirks) and Lashley at a booth, and the group ate breakfast together. While sitting in the booth, Rounds and the others became aware that Lashley possessed a large sum of money, approximately $3,000, a cell phone and an iPad.

Brunton and Rounds admitted that later that morning, in the IHOP parking lot, Coleman gave Brunton five baggies of “China White” heroin and directed him to deliver it to Dirks, who was with Lashley and Rounds in Lashley’s vehicle in a nearby parking lot. At Coleman’s direction, Brunton distributed the heroin to Dirks in exchange for $100 cash that he subsequently turned over to Coleman. After acquiring the heroin, Rounds, Dirks and Lashley left the parking lot in Lashley’s vehicle and traveled to a residence in Dallas where Rounds was living. Brunton and Coleman departed the IHOP’s parking lot in a separate vehicle.

According to Brunton’s filed plea documents, the parties stipulate that Brunton’s role in the offense is minor, as defined in the U.S. Sentencing Guidelines.

While traveling to the Dallas residence, Rounds used Lashley's cell phone to send a series of text messages to Coleman, including their proximity to the residence and a text message advising Coleman that “…I figured ud want me on this money.” Rounds admitted that when she sent this message to Coleman she was notifying him that she understood that she was to attempt to steal the money Lashley possessed and turn it over to him. As Rounds and the others arrived at the Dallas residence, Rounds sent another text message to Coleman asking if she should take Lashley and Dirks inside. Coleman responded with a text message that read, “Don’t leave don’t let them leave.” Rounds understood the message to mean to take Lashley into the residence and to keep her there.

Once inside the residence, Rounds and Dirks, aided and abetted by each other, and at Lashley’s request, took possession of the heroin that was originally supplied by Coleman and used a syringe to inject heroin into Lashley three times. Shortly before those heroin injections were administered, Rounds sent a text message to Coleman stating “…ima bout to shoot her up for her first time.” Rounds admitted that she hoped the heroin injection would incapacitate Lashley in such a way to allow Rounds to steal the money that Lashley possessed.

According to an affidavit in Coleman’s case, Dirks turned over a portion or all of Lashley’s money to Coleman later that evening at a hotel in Dallas.

Later that afternoon, Lashley began showing signs of distress, and Rounds and Dirks placed Lashley in a bathtub of ice water in an attempt to reverse the effects of the heroin. After Lashley was removed from the tub, Lashley was placed on a couch and appeared to go to sleep.

Lashley died later that evening as a direct result of the heroin that was administered to her. An autopsy performed at the Southwestern Institute of Forensic Sciences on March 26, 2014, concluded that Lashley died as a result of the toxic effects of heroin.

A federal indictment is an accusation by a grand jury and a defendant is entitled to the presumption of innocence unless proven guilty.

The Dallas Police Department, the FBI, the U.S. Marshals Service and the Buena Park Police Department are investigating. Deputy Criminal Chief Assistant U.S. Attorney Rick Calvert and Assistant U.S. Attorney Phelesa Guy are prosecuting.

DALLAS — Following a six-day trial before U.S. District Judge Ed Kinkeade, a federal jury has found the former CEO of Connect-a-Jet, Martin Cantu, guilty on both counts of an indictment charging felony offenses stemming from his role in a conspiracy to deceive potential investors about the business of Connect-a-Jet, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.

Specifically, the jury found Cantu, 58, of Round Rock, Texas, guilty on one count of conspiracy to commit securities fraud and one count of securities fraud. The maximum statutory penalty for the conspiracy count is five years in federal prison and a $250,000 fine, and 20 years in federal prison and a $250,000 fine for the securities fraud count. Restitution may be ordered. Sentencing is set for September 9, 2015, before Judge Kinkeade.

Cantu’s co-defendant, stock promoter Jason Wynn, 32, of Lantana, Texas, pleaded guilty on April 30, 2015, to the conspiracy offense. He has not yet been sentenced.

Connect-a-Jet (CAJT) was a company that purportedly would provide the first online, real-time booking system for private jet charters. Essentially, it would serve the same function as other well-known online booking systems but would focus on high-end chartered aircraft. Wynn, who worked as a penny-stock promoter, used-car salesman and consultant, founded the company and began its development. By the time Cantu became involved with the business, Wynn and Cantu had abandoned plans to turn the company into a legitimate business and instead focused on pumping and dumping the stock of Connect-a-Jet. Connect-a-Jet was traded on an exchange known as the Pink Sheets and had tens of thousands of public investors. Cantu, who is a licensed attorney with the state of Texas, owned the majority of shares of CAJT.

The government presented evidence at trial that from approximately May to October 2007, Cantu and Wynn conspired with each other, and others, to commit securities fraud by deceiving potential investors regarding CAJT. As part of their scheme, Wynn and Cantu caused public statements and advertisements, including ads in USA Today and commercials on CNBC, to be issued that included numerous false and misleading statements about the progress and status of the company’s real-time booking system; CAJT’s relationships with reputable companies; and CAJT’s customer base. The false and misleading statements led investors to believe CAJT’s online booking system was complete, when, in fact, it never was developed past the initial concept and design stage. The false and misleading statements also led investors to believe that the company had achieved operational success it had not achieved. These false and misleading statements increased demand for CAJT shares, which allowed Wynn, Cantu and others to sell their CAJT shares at artificially-inflated prices. As part of the conspiracy, Cantu engaged in a cover-up of his crimes including providing false testimony to the Securities and Exchange Commission.

The indictment also named co-conspirator Ryan Reynolds, a former stockbroker, who pleaded guilty in the Southern District of Florida to conspiracy to commit securities fraud, based on his involvement in the CAJT conspiracy.

Over the course of fifteen days in the fall of 2007, Cantu realized $552,341 in profits from the sale of 250,000 CAJT shares he controlled, which represented 83% of his total number of shares. Cantu sold these shares through an account in the name of his father. From August 2007 through January 2008, entities controlled by Wynn sold 4.2 million CAJT shares in the public market, resulting in profits of $2.585 million.

The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.

The FBI investigated the case. Assistant U.S. Attorneys P. J. Meitl and J. Nicholas Bunch prosecuted.

DALLAS — Brian J. Polito of Allen, Texas, appeared yesterday before Chief U.S. District Judge Jorge A. Solis and pleaded guilty to an information charging one count of mail fraud stemming from his operation of an oil and gas investment fraud scheme, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.

Polito faces a maximum statutory penalty of 20 years in federal prison and $250,000 fine, or twice any pecuniary gain to the defendant or loss to the victims. However, according to the plea agreement filed, if the Court accepts the plea, the maximum term of imprisonment is 96 months. Polito also agrees to the entry of a restitution order, forfeiture order, or both, as determined and imposed by the Court, of an amount equal to the victims’ losses (restitution) or the unlawful proceeds (forfeiture) from the scheme.

According to the factual resume filed in the case, Polito was the sole owner/operator of GC Resources, LLC, an oil and gas investment firm that was located on Preston Road in Dallas. Beginning in December 2011, Polito defrauded investors by selling interests in oil and gas projects in which GC Resources had no ownership or interest.

As part of the scheme, Polito researched “Company A” on the Texas Railroad Commission’s website and determined that Company A’s wells were producing. Polito then identified Company A’s drilling permits for wells that were going to be drilled in the future. Through GC Resources, Polito began soliciting investments into Company A’s projects even though GC Resources had no control or interest in the wells.

To convince investors to invest with GC Resources, Polito told investors that GC Resources owned the oil and gas drilling leases, when, in fact, it did not have any ownership or interest in the lease. Polito also misrepresented that GC Resources had an interest in Company A’s wells, when in reality, GC Resources had zero interest in Company A’s wells. Polito informed actual and potential investors that GC Resources had a contract with Company A, which was false. Polito even supplied investors with a document purporting to be a contract between Company A and GC Resources, but that document was fraudulent, as Polito had created it using Photoshop to forge signatures of Company A employees.

Polito paid investors of Company A projects with other fraudulently obtained funds in the manner of a Ponzi scheme.

Polito solicited investments by making cold calls to potential investors and sending prospective investors a packet of materials that included the forged Company Agreement and other documents. Polito deposited investors’ money in a GC Resources bank account to which he had sole control. Over the course of the scheme, Polito raised multiple millions from victim investors, all of which was used to fund a lavish lifestyle.

When investors asked to see the well site, Polito, or a salesperson working for him, would take investors to the actual well site, which was under the control of Company A, in an effort to further deceive investors and prolong his scheme. Polito even obtained production records from the Railroad Commission’s website for Company A wells and provided that information to investors, even though neither Polito or GC Resources had any interest whatsoever in Company A’s wells.

The government has engaged in significant efforts to secure assets for potential restitution to victims. Among other things, the government has recovered $664,000 from the liquidation of the net equity in the following vehicles: a 2014 Roll Royce Wraith, a 2015 McLaren 650S Coupe, a 2014 Lamborghini, a Aventador Anniversary Coupe, a 2015 BMW M4 Coupe, a 2014 Mercedes E63 Wagon, a 2014 Ferrari 458 Speciale, a 2014 Jeep Cherokee SRT8, and one bank account subject to the entry of restitution and/or forfeiture orders.

Last month, the Securities and Exchange Commission (SEC) also filed suit against Polito and GC Resources, LLC for defrauding investors through the sale of interests in oil and gas wells the company never owned.

The FBI investigated the case. Assistant U.S. Attorneys J. Nicholas Bunch and Melissa A. Childs are prosecuting.

DALLAS — A 20-year-old Mesquite, Texas, man, Jeremiah Chayse Gardiner, was sentenced today by Chief U.S. District Judge Jorge A. Solis to 25 years in federal prison following his guilty plea in October 2014 to one count of production of child pornography, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.

According to plea documents filed in the case, an investigation into cybertips received on April 8, 2014, led a detective with the Mesquite Police Department to determine that Gardiner uploaded images of child pornography to a social networking application called Tumblr. On April 17, 2014, detectives with the Mesquite Police Department went to West Mesquite High School to speak with Gardiner and execute a search warrant on his cellphone.

Gardiner admitted uploading images of child pornography to Tumblr, and he further admitted inappropriately touching “Jane Doe #2,” when she was three-years- old. Based on those admissions, the detectives obtained and executed an arrest warrant and search warrant for Gardiner’s residence, and Gardiner was taken into custody.

An examination of Gardiner’s cell phone revealed several images of child pornography, taken with Gardiner’s phone, depicting “Jane Doe,” a two-year-old girl.

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 Mesquite Police Department and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated. Assistant U.S. Attorney Camille Sparks prosecuted.

DALLAS — Dr. Richard Ferdinand Toussaint, Jr., a licensed anesthesiologist who allegedly ran a scheme to defraud health care benefit plans by submitting false and fraudulent claims, has been indicted by a federal grand jury in Dallas on 17 counts of health care fraud, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.

According to the indictment, Toussaint, 57, provided anesthesia services personally and through a company he founded, Ascendant Anesthesia. From approximately 2009-2010, Toussaint practiced medicine at two Dallas hospitals - Forest Park Medical Center located on North Central Expressway and Doctors Hospital at White Rock Lake, located on North Buckner Boulevard.

The indictment alleges that during this time, Toussaint ran a scheme to defraud Blue Cross Blue Shield of Texas (BCBS), United Healthcare (UHC), and the Federal Employees Health Benefits Program (FEHBP) by submitting, or causing to be submitted, false and fraudulent claims for personally performing medical direction of anesthesia services for certified registered nurse anesthetists (CRNAs). Toussaint falsely represented he was “present for” these services when: 1) he was under anesthesia undergoing surgery himself; 2) he was flying on his private jet; 3) he was in another state; and 4) he was at another hospital several miles away. For example, Toussaint submitted or caused to be submitted several claims representing he was present for and medically directing six patients at two different hospitals and was medically directing two patients while under anesthesia himself.

The indictment further alleges that Toussaint also inflated the amount of time the procedures took and pre-signed patients’ medical records representing the services were provided before the procedures even took place. In addition to personally creating false medical records and inflating anesthesia procedure time, Toussaint directed others to do the same, representing he was present for procedures when he knew he was not.

As part of his approximate 18-month-long fraud scheme, Toussaint billed BCBS, UHC, and the FEHBP more than $8 million, of which at least $5 million was fraudulent.

An indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty. Upon conviction, however, the maximum statutory penalty for each count of health care fraud is 10 years in federal prison and a $250,000 fine. Restitution could also be ordered.

The indictment also includes a forfeiture allegation that would require Toussaint, upon conviction, to forfeit proceeds obtained from his fraud scheme, including a 2010 and a 2012 Rolls Royce Ghost; a 2011 Mercedes ML350; a 2011 Bentley Mulsanne, a 2012 Bentley Continental GT and a 2016 Bentley Mulsanne; a 2012 McLaren MP4-12C and a 2015 McLaren 650S Spider; and any and all real property and any and all interests in aircraft.

The FBI; U.S. Department of Labor OIG; U.S. Department of Labor Employee Benefits Security Administration; U.S. Postal Service OIG; U.S. Department of Defense, OIG, Defense Criminal Investigative Service; U.S. Office of Personnel Management OIG; U.S. Department of Health and Human Services, Food and Drug Administration, Office of Criminal Investigation; and Internal Revenue Service Criminal Investigation are investigating. Assistant U.S. Attorneys Brandon McCarthy and Andrew Wirmani are prosecuting.

DALLAS — A federal grand jury in Dallas has indicted 32 defendants, including Gas Pipe, Inc., its owner, his daughter, and numerous managers, on felony charges stemming from their involvement in a massive synthetic drug distribution conspiracy, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.

“I commend the Drug Enforcement Administration, the Duncanville, Desoto, and Dallas Police Departments, the Denton County Sheriff’s Office, Internal Revenue Service Criminal Investigation, and the U.S. Marshals Service for their work in conducting this long and thorough investigation,” said Acting U.S. Attorney Parker. “This indictment is just another step in our continued effort to protect the citizens of this community from being harmed by the dangerous synthetic drugs that continue to be marketed as ‘legal’ alternatives to illicit drugs.”

“Due to the significant public dangers associated with synthetic drugs, and in this case synthetic cannabinoids, DEA, in coordination with our state and local partners, have made this a law enforcement priority,” said Acting Special Agent in Charge Calvin C. Bond of the DEA in Dallas. “We will continue to coordinate investigative activities with our law enforcement partners in an effort to dismantle organizations responsible for manufacturing and trafficking these dangerous synthetic drugs.”

The indictment supersedes an earlier indictment returned in the case. Six defendants, including Lawrence Shahwan, 39, of Lewisville, Texas, were charged in that indictment and other charging documents with various felony offenses related to the distribution of synthetic cannabis and/or marijuana. All of those defendants have pleaded guilty. One defendant, Justin Laney, was sentenced to 41 months in federal prison. Defendants William Venable, Jason Bond, Craig Starnes and Brody Jones are set for sentencing at various dates in the upcoming months. Shahwan is scheduled to be sentenced in August 2015. According to plea documents filed in his case, if the court agrees, he faces a 156-month federal prison sentence and the forfeiture of over $3 million in property.

The indictment that was unsealed this afternoon charges each of the below-listed defendants with one count of conspiracy to defraud the United States:

Gas Pipe, Inc.

Amy Lynn, Inc.

Gerald Shults, a/k/a “Jerry,” 68

Amy Herrig, 39

Rolando Rojas, a/k/a “Ro,” 40

Ryan Yarbro, 40

John Ben Lincoln, 55

Christopher Ramirez, 32

Daniel Caillier, 48

Kendall Silva, 33

Elizabeth Walker, 36

Bridgett Payrot, 27

Jason Lyon, 42

Joshua Campbell, 32

Mick Clark, 49

Brandon Schubert, 29

Jackie Randall-King, 48

Holly Patterson, 38

Brad Bader, 29

Travis Lovin, 31

Jennifer Dunn, 38

Patrick Shanahan, 31

Carolyn Settlemire, 46

Tom Scott, 68

Rapids Camp Lodge, Inc.

Ridglea Complex Management, Inc.

The majority of these defendants either self-surrendered this week or were arrested today, and most have made their initial appearance in federal court.

In addition to conspiracy, the indictment charges Gas Pipe, Inc. (Gas Pipe), Amy Lynn, Inc. (Amy Lynn), Gerald Shults, Amy Herrig, and Ryan Yarbro each with one count of conspiracy to distribute a controlled substance, one count of distribution of a controlled substance near a public playground and one count of conspiracy to distribute a controlled substance analogue.

Gas Pipe, Amy Lynn, Gerald Shults and Amy Herrig are also each charged with eight counts of maintaining a drug involved premise and aiding and abetting; one count of maintaining drug-involved premises in or near a public playground; and three counts of importing a controlled substance analogue and aiding and abetting.

Gas Pipe, Amy Lynn, Gerald Shults, Amy Herrig, Carolyn Settlemire, Rapid Camp Lodge, Inc., and Ridglea Complex Management, Inc. are also each charged with one count of conspiracy to commit money laundering.

According to the indictment, Shults owned Gas Pipe and Amy Lynn, which maintained locations in Austin, Arlington, Dallas, Fort Worth, Garland and Plano, Texas, and in Albuquerque, New Mexico. Gas Pipe and Amy Lynn sold millions of dollars in products commonly referred to as “spice” in the “designer” or synthetic drug market. “Spice” is a common street term referring to a smokeable organic plant substance that has been combined with a synthetic cannabinoid. The synthetic cannabinoids contained in the “spice” they distributed was typically considered either Schedule I controlled substances or controlled substance analogues. To perpetuate an illusion of legality surrounding their “spice” distribution, Gas Pipe and Amy Lynn marketed and sold these products to the general public throughout Texas and New Mexico as “herbal incense,” “potpourri,” or “aroma therapy products, claiming these products were “not for human consumption.”

According to the Drug Enforcement Administration (DEA), synthetic cannabinoids are a family of compounds that are functionally (biologically) similar to the delta9-tetrahydrocannabinol (THC), the main psychoactive component in marijuana. Synthetic cannabinoids are being abused for their psychoactive actions and serious public health and safety issues are associated with this abuse. Synthetic cannabinoids, however, are not organic but are chemicals created in a laboratory. There is an incorrect assumption that these products are safe. Physiological effects include increased heart rate and increase of blood pressure, seizures, agitation, vomiting, hallucinations, violence toward police/paramedics, inability to breathe and psychotic episodes.

In addition to being Shults’ daughter, Amy Herrig was known as “the lady who [ran] the Gas Pipe.” Rojas was Gas Pipe’s General Manager and was in charge when Herrig and Shults were not available. Yarbro served as the buyer for Amy Lynn and Gas Pipe, and he was in charge of Amy Lynn’s manufacturing of “spice.” Lincoln, Ramirez and Caillier served as area managers of various Gas Pipe retail locations and Silva, Walker, Payrot, Lyon, Campbell, Clark, Schubert, Randall-King, Patterson, Bader, Lovin, Dunn and Shanahan served as store managers. Settlemire was the office manager, and Scott served as the general contractor for Gas Pipe’s and Amy Lynn’s building projects. Scott also provided supplies to manufacture and produce the “spice” Gas Pipe and Amy Lynn distributed.

The indictment alleges that the defendants conspired together to introduce or deliver an adulterated or misbranded drug into interstate commerce with the intent to defraud or mislead. As part of the conspiracy, the defendants purchased, possessed, packaged, labeled, marketed, distributed and sold substances containing synthetic cannabinoids such as, AM-2201, JWH-250, UR-144, XLR-11, PB-22, 5F-PB-22, FUB-PB-22, THJ-2201 and AB-FUBINACA. The defendants purchased prepackaged “spice” from manufacturers and those “spice” products were delivered to the Gas Pipe and Amy Lynn warehouse located at 5800 Maple in Dallas, prior to being distributed to each of the Gas Pipe retail locations. These “spice” products would ultimately be marketed, distributed and sold, labeled as “herbal incense,” “potpourri,” or “aroma therapy products” under brand names such as, “Headhunter,” “Black Label,” “Scentsi Star,” “Assassin Revolution,” “Afghan Ice,” “No More Mr. Nice Guy,” “Sour D,” “iBlown,” “Venom,” “WTF,” “Apollo 13,” “Trinity,” “Alien,” and “Plur.” Each of these products was labeled “not for human consumption” and many stated “100% synthetic cannabinoid free” even though each of these products contained a synthetic cannabinoid that the defendants intended for human consumption as a drug. In fact, the indictment details 34 undercover purchases of “spice,” from November 2013 through May 6, 2014, from the various Gas Pipe retail locations.

The indictment alleges that Gas Pipe, Amy Lynn, Shults, Herrig and Yarbro conspired together and with others to manufacture and distribute AB-FUBINACA, AM-2201, JWH-250, UR-144, XLR-11, PB-22, 5F-PB-22, FUB-PB-22, and THJ-2201, and, on March 11, 2014, they distributed the AB-FUBINACA within 1,000 feet of a public playground.

Gas Pipe, Amy Lynn, Shults, Herrig, Yarbro and Settlemire allegedly purchased, from a company in Denmark, Schedule I controlled substance analogue, THJ-2201, that was imported into the United States from Denmark or China.

The conspiracy to commit money laundering count alleges that Gas Pipe, Amy Lynn, Shults, Herrig, Settlemire, Rapids Camp Lodge, Inc., and Ridglea Complex Management Inc. conspired to commit money laundering by transferring earned proceeds from multiple Wells Fargo bank accounts to various financial accounts at UBS Financial Services. They also used the proceeds to purchase various materials, equipment and real property to facilitate the continuation of the manufacturing and distribution of “spice.” They concealed the source and nature of their proceeds by purchasing assets through a seemingly unrelated and different business entity, and they comingled proceeds from the conspiracy with legitimately earned assets in an effort to conceal the true source and nature of the criminal derived funds.

A federal indictment is an accusation by a grand jury. A defendant is entitled to the presumption of innocence unless proven guilty. The offenses charged in the indictment carrying maximum sentences ranging from five to 40 years for each count and fines up to $2 million.

The indictment also includes forfeiture notices that will require some of the defendants, upon conviction, to forfeit proceeds of their criminal activity to the government, as well as real estate located in Arlington, Clifton, Dallas, Austin, Garland, Fort Worth, and Highland Park, Texas; several parcels of real estate in Alaska; five aircraft; a fishing boat; and approximately $16,258,500 in funds the government has already seized.

The DEA, the Duncanville, Desoto, and Dallas Police Departments, the Denton County Sheriff’s Office, Internal Revenue Service Criminal Investigation, and the U.S. Marshals Service investigated. Assistant U.S. Attorneys Brian Poe, Errin Martin, and John J. de la Garza are handling the prosecution.

LUBBOCK, Texas — A Dallas man, man who, along with his three co-defendants, pleaded guilty to their roles in a hydrocodone and alprazolam distribution conspiracy, was sentenced today, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.

Lee Santrell Boston, 35, was sentenced today by U.S. District Judge Sam R. Cummings to six months in federal prison. Boston, who has been in custody since his arrest, along with co-defendants John Conte Smith, a/k/a “Leo,” 35, of Balch Springs, Texas, and Dallas residents, Crystal Nicole Burks, 30, and Keith Deon Noel, 36, each pleaded guilty in November 2014 to one count of conspiracy to distribute and possess with intent to distribute hydrocodone and alprazolam. Smith was sentenced to 46 months, Burks was sentenced to 24 months, and Noel was sentenced to 10 months in federal prison.

According to plea documents filed in the case, from approximately February 2014 to July 2014, in the Abilene, Lubbock, and Dallas Divisions of the Northern District of Texas, Smith, Burks, Noel, and Boston conspired together, and with others, to distribute and possess with intent to distribute hydrocodone, a Schedule III, and alprazolam, a Schedule IV, controlled substance.

Smith provided others in the conspiracy prescriptions on genuine prescription forms from medical facilities with the names of actual physicians at those facilities, but with fictitious patient names. Other co-conspirators then took the prescriptions to pharmacies to have them filled, eventually taking the controlled substances back to Smith who kept some for himself and sold the remainder.

On February 2, 2014, Burks’ boyfriend was arrested for passing forged prescriptions for her. After his arrest, Burks began passing the forged prescriptions, or using others to pass them, for Smith in the Dallas-Fort Worth area. In May 2014, Smith directed Burks to pass forged prescriptions in the Lubbock and Abilene areas, and Burks had her brother-in-law, Noel, drive her on the trip. Before they left Dallas, Burks and Noel went to a location near downtown Dallas and recruited a homeless person, Boston, to go with them. The three left Dallas and drove to Lubbock on May 20, 2014.

The next day, Burks and Noel drove Boston to several pharmacies in Lubbock where he passed forged prescriptions that Burks had given him and paid for the prescriptions with money she had given him. Boston turned over the filled prescriptions and the change to Burks.

Burks, Noel and Boston drove to Abilene the next day, May 22, 2014, where, after passing forged prescriptions, they were arrested by officers with the Abilene Police Department. Inside Burks’ purse were pill bottles containing hydrocodone and Alprazolam, as well as prepared prescription forms that had not yet been passed. Prepared, but unpassed, prescription forms were found in other places in the car. John Conte Smith’s fingerprint was found on one of the unpassed prescription forms.

A search warrant was executed at Smith’s home on July 2, 2014, and law enforcement located filled prescriptions for hydrocodone and alprazolam for persons other than Smith, as well as prepared prescription forms in other people’s names that had not yet been passed. Officers also found a 9mm semiautomatic pistol and ammunition in the nightstand by Smith’s bed.

The FBI and the Abilene Police Department investigated. Deputy Criminal Chief Assistant U.S. Attorney Denise Williams prosecuted.

DALLAS — A Dallas man, who, along with his co-conspirator admitted committing the armed robberies of several jewelry stores in the Dallas-Fort Worth (DFW) area, was sentenced this morning to a lengthy federal prison sentence, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.

Michael Demon Jackson, 37, of Dallas, was sentenced to serve a total of 594 months in federal prison by U.S. District Judge Sidney A. Fitzwater. He pleaded guilty in November 2014 to one count of conspiracy to interfere with commerce by robbery and two counts of using, carrying, and brandishing a firearm during and in relation to a crime of violence.

A co-conspirator, Mark D. Whitfield, 36, of Mesquite, Texas, is scheduled to be sentenced on June 5, 2015. He pleaded guilty in September 2014 to the conspiracy count and one count of using, carrying, and brandishing a firearm during and in relation to a crime of violence.

According to documents filed in the case, from approximately October 18, 2013, to May 22, 2014, Jackson and Whitfield conspired to rob, and did rob, the below-listed jewelry stores located in shopping malls in the DFW area, of more than $400,000 of jewelry:

October 18, 2013 and February 4, 2014 - Marquise Jewelers in Valley View Mall, 13331 Preston Road, Dallas

February 24, 2014 - Classic Jewelers in Vista Ridge Mall, 2401 South Interstate 35-E, Lewisville, Texas

April 29, 2014 - Gianni’s Jewelers in Vista Ridge Mall, 2401 South Interstate 35-E, Lewisville, Texas

May 20, 2014 - Benson’s Jewelers in The Parks at Arlington Mall, 3811 South Cooper Street, Arlington, Texas

During each of the two Marquise Jewelers robberies, Whitfield distracted a store employee by pretending to be interested in buying jewelry and asking the store employee to show him merchandise in the display cases. Once the employee was distracted and the display case opened, Jackson went around the counter and, in one robbery, held a firearm to the employee’s head and threatened to kill her, and in the other robbery, pushed the employee to the floor, held a firearm to her head and, again, threatened to kill her.

During each of the other three robberies, the defendants committed and threatened physical violence with a firearm.

The FBI investigated the case. Assistant U.S. Attorney Lisa Miller prosecuted.

DALLAS — An Arlington, Texas, woman, who admitted stealing retirement insurance benefits and veterans’ benefits from her deceased parents, was sentenced today, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.

Latasha Smith, a/k/a Latasha Matthews, 34, was sentenced by U.S. District Judge John McBryde to 33 months in federal prison and ordered to pay a total of $143,403 in restitution to the Social Security Administration (SSA) and the Department of Veterans Affairs (VA). Judge McBryde ordered that she surrender to the Bureau of Prisons on June 5, 2015.

According to documents filed in the case, Smith’s father, Paul Smith, died in December 1989, and at the time of his death, he was receiving SSA Title II Retirement Insurance benefits under the name of Barney Smith, an alias identity with a different Social Security number. Although the SSA was notified that Paul Smith died, it did not recognize Barney Smith as an alias identity, and it continued to pay benefits to Barney Smith.

From December 1989 through December 2008, Mary Smith, Paul/Barney Smith’s wife, received and used these Social Security benefits for her personal use. As Paul Smith’s surviving spouse, she also applied for and was approved to receive VA Dependency and Indemnity Compensation benefits. While Mary Smith’s use of the SSA benefits constituted theft, she was a legitimate recipient of the VA benefits.

When Mary Smith died in December 2008, she was no longer entitled to any additional VA benefits. The SSA benefits she had been receiving were directly deposited into a joint bank account held by Barney and Mary Smith. The VA benefits were directly deposited into a joint bank account held by Paul and Mary Smith.

Latasha Smith had access to both accounts after her mother’s death. She admitted that she transferred the SSA funds into the account holding the VA funds and then subsequently cashed checks written to her, or her husband, drawn on that account and also used an ATM card to electronically withdraw funds from the account.

The SSA’s Office of the Inspector General, with assistance from the VA’s Office of Inspector General investigated. Special Assistant U.S. Attorney Nicole Dana prosecuted.

 

DALLAS – A Mesquite, Texas, man was arrested earlier today by the FBI on a criminal complaint charging him with making a false statement to the FBI, announced Assistant Attorney General for National Security John P. Carlin, Acting U.S. Attorney John Parker of the Northern District of Texas and Special Agent in Charge Thomas M. Class Sr. of the FBI’s Dallas Field Office.

Bilal Abood, 37, an Iraqi-born naturalized U.S. citizen who migrated to the United States in 2009, made his initial appearance in federal court in Dallas this afternoon. Abood will remain in custody pending a probable cause and detention hearing set for May 15, 2015.

According to the complaint, on March 29, 2013, Abood attempted to depart the United States from Dallas Fort Worth International Airport, but was not allowed to board the flight. While at the airport, FBI agents asked Abood about his planned travel, and he initially advised agents that he was merely planning to travel to Iraq to visit family. During a subsequent interview, agents asked Abood again about his attempted travel — specifically asking if he intended to go to Syria to fight, and Abood stated that was not his intent. Later in that interview, however, Abood admitted that his intent on March 29, 2013, was to go to Syria to fight against the Assad regime, claiming he wanted to fight with the Free Syrian Army (FSA).

On approximately April 29, 2013, Abood left the United States through Mexico and traveled through various countries in order to get to Turkey. Upon Abood’s return to the United States on Sept. 16, 2013, the FBI interviewed him again. In that interview, Abood admitted traveling to Syria through Turkey, and claimed that he went there to fight with the FSA and that he had stayed in an FSA camp. Abood stated that he became frustrated with a lack of action and wanted to return to the United States. He denied ever providing financial support to al-Nusrah Front (ANF), the Islamic State of Iraq and the Levant (ISIL) or any other terrorist organization.

A review of Abood’s computer on July 9, 2014, pursuant to a federal search warrant, revealed Abood pledged an oath to Abu Bakr al-Baghdadi, the leader of ISIL, on June 19, 2014. The search warrant also revealed that Abood had been on the internet viewing ISIL atrocities such as beheadings, and had used his twitter account to tweet and retweet information on al-Baghdadi.

On April 14, 2015, FBI agents went to Abood’s residence to return his computer that was seized in the 2014 search warrant. Abood admitted that he knew it was a crime to lie to an FBI agent, and Abood denied to the agents that he had ever pledged allegiance to al-Baghdadi.

The maximum statutory penalty for the offense charged in the complaint is eight years in federal prison and a $250,000 fine.

A complaint is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.

The matter is being investigated by FBI’s Dallas Division. The prosecution is being handled by the U.S. Attorney’s Office for the Northern District of Texas, with assistance from the National Security Division’s Counterterrorism Section.

FORT WORTH, Texas — Two Fort Worth, Texas, tax preparers who were convicted at trial in November 2014 on 34 counts of a superseding indictment charging conspiracy and other tax offenses, were sentenced yesterday, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.

Ramona C. Johnson was sentenced to 170 months in federal prison by U.S. District Judge John McBryde and Nekia N. Everson was sentenced to 95 months in federal prison. Both must surrender to the Bureau of Prisons by June 5, 2015.

According to evidence presented at trial, Ramona C. Johnson managed/operated a tax preparation business in Fort Worth that was known, among other names, as Tax Office One. Johnson’s daughter-in-law, Nekia N. Everson, was a return preparer for the business, according to evidence presented at trial.

Johnson and Everson were each convicted on one count of conspiracy to aid and assist in the preparation and presentation of a false tax return. Johnson was also convicted on 26 counts of aiding and assisting in the preparation of a false tax return and two counts of filing false tax returns. Everson was also convicted on five counts of aiding and assisting in the preparation and presentation of a false tax return.

The government presented evidence at trial that Johnson and Everson, and those working with them, prepared and filed false and fraudulent tax returns that included various false and fraudulent schedules, deductions, exemptions, and credits with the goal of reducing the amount of taxes owed by the taxpayers and obtaining larger refunds for the taxpayers than they were entitled to receive. As a result of the larger refunds, Johnson and Everson were able to charge higher fees for preparing returns, build client loyalty, and increase business through client referrals.

In some instances, Johnson and Everson, and those working with them, created false and fraudulent Schedule C (reporting business losses/profits) and Schedule A (reporting itemized deductions) forms to accompany the taxpayer’s Form 1040. The taxpayers would often be asked about their personal expenses, such as those incurred commuting to and from work, cell phone, automobile, clothes, etc., and then the information would be fraudulently listed on the Schedule C as business expenses or unreimbursed employee expenses on Schedule A. On some returns, Johnson and Everson would completely fabricate a Schedule C business, including income and expense items. For some taxpayers, Johnson would create a false and fraudulent Schedule C reflecting the taxpayers had a profit from a nonexistent business. This false profit, together with claimed dependents (both fraudulent and actual), would be used to claim the taxpayer was entitled to an earned income tax credit.

In other instances, according to evidence presented at trial, Johnson and Everson would include false dependent exemptions on tax returns for some clients. Johnson, or someone working with her, would acquire various personal identities, the names and social security numbers of individuals with no connection to the taxpayer to use as false dependents on tax returns prepared for clients. When included on the tax return, the false dependents would increase the number of exemptions, increase the deduction for exemptions, and often, entitle the taxpayer to an earned income tax credit.

In addition, the government presented evidence that for calendar years 2009 and 2010, Johnson filed tax returns in which she reported total income of $2,850 and $16,906, respectively, when she well knew that the income amount was understated in that it did not include income she received for her work preparing tax returns.

Between January 2008 and October 2011, according to evidence presented at trial, Johnson’s tax preparation business collected more than $1.9 million in tax preparation fees from clients.

IRS Criminal Investigation investigated. Assistant U.S. Attorneys Mark Nichols and Chris Wolfe prosecuted.

DALLAS — A federal grand jury in Dallas returned two unrelated indictments last week charging three Dallas residents with felony offenses stemming from filed bankruptcy petitions, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.

In one indictment, Diana Yamille Hernandez, 41, is charged with one count of misrepresentation of a Social Security number and one count of making false statements under penalty of perjury. Her co-defendant, Erica Soria, a/k/a “Erica Soria Fisher, 39, is charged with one count of making false statements.

According to that indictment, in August 2011, Hernandez retained a law firm, identified in the bankruptcy petition as the Allmand Law Firm of Dallas, to help her file for bankruptcy. Soria, an employee of that firm, assisted Hernandez in preparing and processing the bankruptcy documents. Hernandez told Soria that she was using a false Social Security number and possessed a fraudulent Social Security card. Both Hernandez and Soria concealed the existence of this false Social Security number in documents filed with by the law firm with the bankruptcy court.

Hernandez made her initial appearance in federal court this afternoon; Soria made her initial appearance on Friday. U.S. Magistrate Judge Renee Harris Toliver released both on bond.

In a separate, unrelated indictment, Al Hakeem Muhammad, II, 26, is charged with one count of misrepresentation of a Social Security number. The indictment alleges that he used a Social Security number that he knew was not his when he completed a credit application to obtain a lease on an apartment located in Victory Park in Dallas.

That indictment stems from a federal criminal complaint filed last month against Muhammad. According to that complaint, Muhammad also stated on that credit application that he had never filed for bankruptcy protection, when, in fact, Muhammad personally filed for bankruptcy in May 2013 in the Eastern District of Texas and in July 2012, October 2012, and January 2013 in the Northern District of Texas. In addition, according to that complaint, in March 2015, Muhammad also made a false statement, under penalty of perjury, in relation to a bankruptcy filing he made when he misstated on that filing that the current value of real estate he owned in Detroit, Michigan, was $77,000, when it fact, in 2014, it was valued for tax purposes at $10,200. He also falsely testified to that in an April 2015 bankruptcy hearing.

Muhammad made his initial appearance in federal court on the complaint on April 28. His arraignment is set for May 26, 2014.

An indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty. A federal complaint is a written statement of the essential facts of the offense charged and must be made under oath before a magistrate judge. The maximum statutory penalty for each of the offenses charged in these two indictments is five years in federal prison and a $250,000 fine.

These cases represent felony prosecutions of bankruptcy-related crimes generated by the recent Bankruptcy Fraud Initiative within the Northern District of Texas. Since February 2013, 12 defendants have been charged with various felony offenses. Six defendants have entered guilty pleas and five have been sentenced. One defendant is set for trial, and one defendant remains in fugitive status with outstanding arrest warrants.

The FBI investigated the Muhammad case, and the Social Security Administration Office of the Inspector General investigated the Hernandez/Soria case. Assistant U.S. Attorney David Jarvis is in charge of the prosecution.

LUBBOCK, Texas — A 27-year-old Shallowater, Texas, man, Michael Wayne Brown, was sentenced today by U.S. District Judge Sam R. Cummings to 108 months in federal prison and a 20-year term of supervised release, following his guilty plea in December 2014 to one count of possession of prepubescent child pornography. Acting U.S. Attorney John Parker of the Northern District of Texas made the announcement today.

According to documents filed in the case, Brown owned various telephones and electronic devices, and he stored pornographic images on some of them, including an 8GB Sandisk memory card. On that memory card, Brown stored numerous images of child pornography, some of which involved prepubescent minors.

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 Lubbock Police Department’s Internet Crimes Against Children (ICAC) Task Force and the FBI investigated. Assistant U.S. Attorney Steven M. Sucsy prosecuted.

WASHINGTON – A physician who ran a medical house call service business in Dallas, and an employee of that business were arrested this morning on charges related to their alleged participation in a $5.2 million health care fraud scheme.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney John R. Parker of the Northern District of Texas, Special Agent in Charge Mike Fields of the Department of Health and Human Services’ Office of Inspector General’s (HHS-OIG) Dallas Regional Office, the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU), Special Agent in Charge Thomas M. Class, Sr. of the FBI’s Dallas Division and Special Agent in Charge Max Eamiguel of the U.S. Postal Service’s Office of the Inspector General’s (USPS-OIG) Southern Area Field Office made the announcement.

Hector Molina, M.D., 51, of Irving, Texas, and Blanca Mata, 46, of Forney, Texas, were charged with one count of conspiracy to commit health care fraud. In addition, Molina was charged with eight counts of health care fraud, and Mata was charged with four counts of health care fraud. Both defendants made their initial appearances before U.S. Magistrate Judge Renée Harris Toliver of the Northern District of Texas earlier today and were released on bond.

According to allegations in the indictment, Molina owned and operated Molina Medical Housecall Services in Dallas, and Mata was an employee of that business. The indictment alleges that from approximately June 2012 through January 2015, Molina and Mata conspired to defraud Medicare by billing for home visits performed by Mata, who was not a physician, as if Molina had performed the home visits. Additionally, the indictment alleges that Molina billed for home visits performed in the Dallas area while he was out of the country.

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

This case is being investigated by HHS-OIG, the Texas Attorney General’s MFCU, the FBI and USPS-OIG, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Northern District of Texas. The case is being prosecuted by Trial Attorney Jason Knutson of the Criminal Division’s Fraud Section.

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,100 defendants who have collectively billed the Medicare program for more than $6.5 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.stopmedicarefraud.gov.

DALLAS — A residential homebuilder, who operated under the name of Park Cities Development, Inc., was sentenced yesterday by U.S. District Judge Barbara M. G. Lynn, announced Acting U.S. Attorney John Parker of the Northern District of Texas.

Edward Adrian Abraham, 56, most recently of Dallas, was sentenced to 24 months in federal prison and ordered to pay $252,078 in restitution. He pleaded guilty in April 2014 to one count of wire fraud, and he has been in custody since his arrest on related charges outlined in a federal indictment returned by a grand jury in Dallas in January 2014.

According to documents filed in the case, from February 2009 through at least July 2009, Abraham devised and executed a scheme to defraud insurance companies in connection with fraudulent insurance claims based on false claims of building materials allegedly stolen from two residential job sites in Dallas - one on Amherst Avenue and one on Drane Drive.

As part of his scheme, Abraham filed false police reports to support the fraudulent insurance claims, and he caused false and fraudulent invoices to be fabricated and faxed to insurance companies to support the claims. Abraham admitted that no building materials were stolen from either location. Because of the false and fraudulent invoices, he received $247,078 in proceeds from the insurance companies.

The FBI investigated the case. Assistant U.S. Attorney J. Nicholas Bunch prosecuted.

DALLAS — A former employee with the Dallas Independent School District (DISD) and her co-conspirator, who each pleaded guilty to one count of conspiracy to commit mail fraud, have been sentenced, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.

Maricella Reed, 41, who was employed by the DISD as a data specialist in the worker’s compensation section of the district’s Risk Management Department, was sentenced in March by U.S. District Judge Sidney A. Fitzwater to 24 months in federal prison.

Today, Judge Fitzwater sentenced Reed’s co-conspirator, Adrian Bevelle, 32, to 39 months in federal prison. They were ordered to pay, jointly and severally, more than $161,000 in restitution. Reed is currently serving her sentence; Bevelle must surrender to the Bureau of Prisons on June 16, 2015.

According to documents filed in the case, from May 2009 to May 2011, Reed used her position to cause unauthorized payments be issued to Bevelle. Bevelle was not a DISD employee nor was he a worker’s compensation claimant; he was not entitled to any benefits from the DISD worker’s compensation program.

Reed altered information sent to Accounts Payable, substituting Bevelle’s name in place of legitimate claimants and adding Bevelle’s name and payment amounts to the list of legitimate claimants. Reed also created and submitted payment voucher forms for Bevelle in various amounts. Based on the information Reed provided, Accounts Payable issued checks to Bevelle and mailed the checks to him at various addresses in Dallas and Irving. Bevelle received, endorsed and cashed the checks at various locations.

The U.S. Postal Inspection Service investigated. Special Assistant U.S. Attorneys Dan Gividen and Michelle Allen-McCoy prosecuted.

LUBBOCK, Texas — A 55 year-old Roscoe, Texas, man appeared in federal court today before U.S. Magistrate Judge Nancy M. Koenig and pleaded guilty to a felony offense stemming from a fraudulent invoicing scheme he ran while working at Chevron Pipe Line Company, announced, John Parker, Acting U.S. Attorney for the Northern District of Texas.

Gerald Allen Williams pleaded guilty to a criminal information charging one count of wire fraud. He faces a maximum statutory penalty of 20 years in federal prison and a $250,000 fine. Judge Koenig ordered that he remain on bond pending sentencing, a date for which was not set.

According to documents filed in the case, Williams worked as a Project Coordinator at Chevron Pipe Line Company’s Roscoe, Texas, facility. He was responsible for ensuring the completion of several construction and maintenance projects.

E.D. Walton Construction Company (EDW) out of Snyder, Texas, was a Chevron contractor that performed various construction and maintenance projects for Chevron.

Sometime around 2006-2007, according to plea documents filed, Williams approached EDW about a fraudulent invoicing scheme. EDW would create fictitious invoices and submit them to Chevron through the Arriba System, Chevron’s system for receiving and paying invoices. Williams would approve the fictitious invoices for payment, and the fictitious invoices would be processed for payment to EDW. Once EDW received payment for the fictitious invoices, it would pay Williams, in cash, the exact amount of the fictitious invoice. EDW did not receive any of the proceeds from the fictitious invoicing; Williams received all the proceeds. The scheme continued until approximately December 2011.

Williams admitted that he knowingly devised or intended to devise the scheme to defraud Chevron of money by means of false and fraudulent invoices. He further admitted he acted with the specific intent to deceive or cheat Chevron into thinking that EDW had completed various construction and maintenance projects for Chevron, when in fact, Williams knew EDW had not completed those projects.

The FBI investigated the case. Assistant U.S. Attorney Jeffrey R. Haag is in charge of the prosecution.

DALLAS — Mark Stamps, of Garland, Texas, was sentenced this morning by U.S. District Judge Ed Kinkeade to 168 months in federal prison on a child pornography conviction, announced Acting U.S. Attorney John Parker of the Northern District of Texas.

Stamps, 54, pleaded guilty in May 2014 to a felony information charging one count of transporting and shipping child pornography. He has been in custody since his arrest in April 2014.

The investigation began when a detective with the Sherman, Texas, Police Department, identified a computer that appeared to be sharing child pornography. In fact, the detective was able to obtain a list from the shared folder that contained at least 90 files of known or suspected child pornography.

Further investigation revealed that the computer belonged to Stamps, and based on this information, special agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) executed a search warrant at Stamps’ residence on April 10, 2014. Special agents located child pornography videos on an external hard drive.

Stamps admitted that at the time of the search, he knowingly had more than 2500 child pornography images and videos on his computer and other media. Some of those images and videos depicted sadistic and/or violent content, and some of the files depicted infants and toddlers.

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.”

ICE HSI and the Sherman Police Department investigated. Assistant U.S. Attorney Camille Sparks prosecuted.