Northern District of Texas

FORT WORTH, Texas — At a sentencing hearing held today before U.S. District Judge John McBryde, Michelle Johnson was sentenced to 36 months in federal prison and ordered to pay more than $1.6 million in restitution, following her guilty plea in August 2013 to one count of aiding and assisting in the preparation of false tax returns.  Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

During the hearing, Johnson stated that she is a resident of Mansfield, Texas.  According to the defense’s motion for downward variance, filed in December 2013, Johnson is 37-years-old and the owner of 3D Tax Services, a tax preparation business.

In January 2010, according to the factual resume filed in the case, Johnson prepared a 2009 federal tax return for an individual that was false and fraudulent in that it grossly inflated expenses associated with this individual’s auto detailing business.  This individual’s business expenses were thousands of dollars less than what Johnson claimed on the Schedule C which she prepared and attached to the return without the taxpayer’s knowledge.

The case was investigated by Internal Revenue Service Criminal Investigation. 

DALLAS — Following a hearing this afternoon in federal court, a Dallas man, who is charged in a federal complaint with attempting to possess anabolic steroids and falsely making, forging, counterfeiting and altering a U.S. Marshals Service seal, was ordered detained by U.S Magistrate Judge Irma C. Ramirez pending further order of the court.  Nicholas Todd Freed, 39, was arrested this week by a task force officer assigned to Homeland Security Investigations (HSI), after it was discovered Freed was claiming packages containing anabolic steroids from a postal center in Dallas.  As Freed was being apprehended, law enforcement also observed that he possessed a counterfeit U.S. Marshals Service (USMS) credential and badge.  U.S. Attorney Sarah R. Saldaña of the Northern District of Texas made the announcement this afternoon.

According to the filed criminal complaint, the investigation began in early January 2014 when U.S. Customs and Border Protection (CBP) in San Francisco identified a U.S.Postal Service Express Mail parcel, arriving from Singapore, as suspicious.  Its contents were identified as Boldenone Undecylenate, an anabolic steroid and Schedule III controlled substance.  CBP seized the parcel, which was addressed to JPEG Press, 3100 Main Street #1, Dallas, Texas 75226, the true address of the Deep Ellum Postal Center.  HSI in Dallas was notified about 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.   The investigation ensued, and 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 silver-colored USMS badge and apparent counterfeit USMS credentials identifying him as a USMS Chief Inspector.  Freed was also carrying a credit card knife, handcuff key and several driver licenses with his photo, but different names on them.  In addition, Freed’s vehicle had several items on it or in it consistent with an equipped police vehicle, including emergency flashing lights mounted on the grill, siren, rear flashing red tail lights, spotlight, front push bumper and handcuffs.

During a consensual search at Freed’s residence, law enforcement located several computers, laminating materials, blank plastic cards the size of a Texas driver license, pages of magnetic strips for the back of the cards, ink consistent with that of the Texas seal on the license and identification cards, a press to laminate the cards, pages with hologram material of official federal and government seals, pages of names and identities used to produce the cards, several computer related files of identification cards Freed had previously made, head-shot photos on the computer, and other materials necessary to manufacture and produce fraudulent government identifications, specifically Texas driver licenses, a picture of a Texas Motor Vehicle Inspection sticker on the computer, Texas identification cards, state school identification cards, military identifications and a USMS identification card.

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.  The government has 30 days to present the matter to a federal grand jury for indictment.  A defendant is entitled to the presumption of innocence until proven guilty.  The maximum statutory penalty for the offense, as charged, of knowingly, intentionally and unlawfully attempting to possess with the intent to distribute anabolic steroids is 10 years in federal prison and a $500,000 fine.  The maximum statutory penalty of the offense, as charged, of falsely making, forging, counterfeiting and altering the seal of a department and agency of the U.S., is five years in federal prison and a $250,000 fine.

The ongoing investigation is being conducted by HSI, CBP, the Balch Springs Police Department and the Dallas Police Department.  Assistant U.S. Attorney Keith Robinson is in charge of the prosecution.

Defendant Was on the Lam for Nearly Two Years
Before He Was Apprehended in Greece and Extradited to U.S.

FORT WORTH, Texas — Christopher Blackwell, 34, who pleaded guilty almost three years ago to running a Ponzi scheme that defrauded dozens of investors of millions of dollars, fled the country while he was awaiting sentencing, and was recently apprehended and extradited to the U.S., was sentenced yesterday by U.S. District Judge Terry R. Means to 210 months in federal prison and ordered to pay approximately $8.6 million in restitution. 

In making today’s announcement, U.S. Attorney Sarah R. Saldaña, of the Northern District of Texas, said, “I commend the tremendous coordination and efforts of an international law enforcement team, including Homeland Security Investigations, the Justice Department’s Office of International Affairs, the U.S. Marshals Service, Interpol and the Greek authorities that located this fugitive and returned him to the U.S. to face justice.”  

“After pleading guilty to his Ponzi scheme that cheated dozens of people out of more than $8 million, Mr. Blackwell hoped that he could hide from punishment by fleeing to Greece,” said David M. Marwell, special agent in charge of Homeland Security Investigations in Dallas.  “However, by working closely with our worldwide HSI attaché offices, and the Hellenic National Police, we used the ‘long arm of the law’ to bring Mr. Blackwell to justice.”

Acting U.S. Marshal Benjamin E. Kates of the Northern District of Texas, said, “Bringing Christopher Blackwell to justice is an excellent example of law enforcement cooperation.”

Following his plea in July 2011, Blackwell, who at the time was a Colleyville, Texas, resident, absconded to Greece.  On April 16, 2013, he was arrested in the island of Corfu in Western Greece by Homeland Security Investigations (HSI) and the Athens and the Hellenic National Police.  On November 11, 2013, Blackwell was extradited from Greece by the U.S. Marshals Service to the Northern District of Texas.

Blackwell operated the Ponzi scheme, which caused approximately $8.6 million in losses to investors, from approximately January 2007 to mid-June 2011, when he was arrested in Phoenix on charges outlined in a criminal complaint filed in the Northern District of Texas.  At yesterday’s sentencing hearing, a special agent with HSI testified about the severe financial impact of the fraud on the lives of the dozens of victims.

According to the factual resume filed in the case, Blackwell told potential investors that their money would be invested in specific business ventures.  However, when he received money from them, he did not invest those funds, but instead used the majority of the money for his own personal benefit.  Blackwell also occasionally used some of the funds received from new investors to make small payments to earlier investors.  These payments were designed to convince investors that their money was generating a profit.  Not all investors received payments from Blackwell, and many lost all of the money they invested.  Blackwell recruited investors from a variety of geographic areas.

Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 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’s 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.  Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants.  For more information on the task force, visit www.stopfraud.gov.

The investigation was led by HSI.

Defendant Convicted on Drug Conspiracy and Federal Firearm Charges

WICHITA FALLS, Texas — Darren Scott Murphy, 26, of Electra and Wichita Falls, Texas, was sentenced yesterday, by U.S. District Judge Reed C. O’Connor, following his guilty plea in July 2013 to one count of conspiracy to possess with intent to distribute and to distribute methamphetamine and one count of being a felon in possession of a firearm.  Judge O’Connor sentenced Murphy to 240 months on the drug count and 120 months on the firearm count, to run concurrently.  Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

All seven defendants charged in the case pleaded guilty and all have been sentenced:

                       Anthony Rueben Johnston, 28, to 480 months in federal prison
                        Rachel Dawn Billen, 21, to 36 months
                        Louis Griego, Jr., 44, to 168 months
                        Janis Hernandez, 31, to 136 months
                        James Allen Holley, 34, to 142 months
                        Christina Gail Thompson, 32, to 42 months

According to documents filed in his case, Murphy admitted that on multiple occasions, from at least August 4, 2012 through February 21, 2013, he received multi-ounce quantities of methamphetamine from supply sources in the Dallas-Fort Worth area and elsewhere, and distributed it to numerous customers in the Electra and Wichita Falls, areas.

Murphy admitted that on the evening of December 2, 2011, when the vehicle he was driving was stopped on by officers with the Fort Worth Police Department, he ran when he exited the vehicle.  While being apprehended a short distance from the vehicle, Murphy yelled to the vehicle’s passenger, “Get the pistol!  Get the pistol!”  One of the officers located a silver revolver lying in the road beneath the driver’s side of the vehicle.

He further admitted that on August 4, 2012, in Clay County, Texas, deputies with the Clay County Sheriff’s Office initiated a traffic stop on a car in which he was the front-seat passenger.  He had approximately 81.6 grams of methamphetamine hidden in a fast food restaurant bag in the front seat.

He also admitted that on November 6, 2012, in Wise County, a trooper with the Texas Department of Public Safety initiated a traffic stop on a car driven by co-defendant Johnston in which Murphy was the front-seat passenger.  Law enforcement seized a small amount of methamphetamine and approximately $10,015 in cash.  Murphy further admitted that he attempted to obstruct the investigation of this crime.

In addition, Murphy admitted that he conspired with Johnston regarding the methamphetamine that law enforcement recovered during the execution of a state search warrant on February 14, 2013, at a residence in Wichita Falls shared by Johnston and co-defendant Billen.  Murphy admitted that he possessed that methamphetamine with the intent to distribute it.  Law enforcement also recovered handwritten notes inside the residence that identified customers who owed Murphy approximately $10,925 for methamphetamine purchases.

The Texas Department of Public Safety, the Wichita Falls Police Department, the Wichita County District Attorney’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. 

Assistant U.S. Attorney Mary F. Walters prosecuted.  

WICHITA FALLS, Texas— Three defendants, who pleaded guilty in 2013 to their respective roles in a major methamphetamine distribution conspiracy operating in Wichita Falls, Texas, were sentenced yesterday by U.S. District Judge Reed C. O’Connor, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

Bobby Ray Harris, Jr., aka “Bobby Landrum,” 34, was sentenced to 210 months in federal prison.  He pleaded guilty in August 2013 to one count of conspiracy to possess and distribute methamphetamine.  According to the factual resume filed in his case, he purchased at least one-half ounce quantities of methamphetamine from co-conspirator Deborah McCulloch five times during the time frame of March to July 2012, with the purpose of redistributing it.  Harris has been in custody since his arrest in April 2013.  McCulloch is currently serving a 50-month federal prison sentence after pleading guilty to the same offense.

Co-conspirators Margarita C. Crowe, 42, Amy Kitchell Hamm, 38, each pleaded guilty in October 2013 to the same offense as Harris, and they were each sentenced to 72 months in federal prison.  Both were remanded into custody at yesterday’s sentencing hearing.  They each admitted that on multiple occasions, between April 2012 and August 2012, they distributed quantities of methamphetamine they had obtained from co-conspirators, to customers in the Wichita Falls area.

To date, all 39 defendants charged in this conspiracy have entered guilty pleas; a total of 35 defendants have been sentenced. 

This Organized Crime and Drug Enforcement Task Force (OCDETF) case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; Texas DPS; and the Wichita Falls Police Department.  Assistant U.S. Attorney Mary F. Walters is in charge of the prosecution.

DALLAS — James Brian Rivers, 23, of Dallas, appeared this morning before U.S. Magistrate Judge Irma C. Ramirez and pleaded guilty to an indictment charging one count of production of child pornography and one count of possession of prepubescent child pornography.  He faces a total statutory penalty of at least 15 years and a maximum of 50 years in federal prison, a $500,000 fine and up to a lifetime of supervised release.  Sentencing is set for May 19, 2014, before U.S. District Judge Sam A. Lindsay.  Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

According to documents filed in the case, on June 30, 2013, Rivers left his cellphone at a neighbor’s home.  The neighbor looked through the cellphone and observed multiple images of child pornography and called 911.  When officers with the Dallas Police Department arrived at the residence, they seized the cell phone obtained a search warrant for the phone.  A forensic review of the phone revealed multiple images and one video depicting child pornography involving a prepubescent child. 

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 investigation was conducted by the FBI and the Dallas Police Department.  Assistant U.S. Attorney Camille Sparks is in charge of the prosecution.

WASHINGTON – Attorney General Eric Holder today announced the appointment of the following eight U.S. Attorneys to serve two-year terms on the Attorney General’s Advisory Committee (AGAC): André Birotte Jr., Central District of California; Thomas E. Delahanty II, District of Maine; Zachary T. Fardon, Northern District of Illinois; Wifredo A. Ferrer,  Southern District of Florida; Kerry B. Harvey, Eastern District of Kentucky; Zane D. Memeger, Eastern District of Pennsylvania; Tim Q. Purdon, District of North Dakota; and Sarah R. Saldaña, Northern District of Texas.

“In the face of daunting staff and resource constraints, our U.S. Attorneys’ Offices are performing tremendous work in their districts across the country, standing on the front lines of federal law enforcement efforts,” said Attorney General Holder.  “Each of the U.S. Attorneys who serves on the Attorney General’s Advisory Committee plays an indispensable role in guiding the Justice Department’s work as we confront a range of challenging issues and opportunities.  I welcome the eight new members of the AGAC I’ve chosen to appoint today, and look forward to working closely with them to take fresh, and smart, approaches to fighting crime and achieving justice across the nation.”

The Attorney General also thanked the following U.S. Attorneys who have completed their two-year terms and are rotating off the committee: Laura E. Duffy, Southern District of California; Timothy J. Heaphy, Western District of Virginia; Brendan V. Johnson, District of South Dakota; Pamela C. Marsh, Northern District of Florida; Carmen M. Ortiz, District of Massachusetts; Robert L. Pitman, Western District of Texas; James Santelle, Eastern District of Wisconsin; Carter M. Stewart, Southern District of Ohio.

U.S. Attorney Sarah R. Saldaña, of the Northern District of Texas, said, “I am honored by the Attorney General’s appointment.  It is an extraordinary privilege and I look forward to serving the United States in this expanded role.”

Chaired by U.S Attorney for the Eastern District of New York Loretta E. Lynch, the AGAC represents the voice of the U.S. Attorneys and provides advice and counsel to the Attorney General on policy, management and operational issues impacting the Offices of the U.S. Attorneys.

A brief bio on each new appointee is below:

André Birotte Jr. was presidentially appointed and sworn in as the U.S. Attorney for the Central District of California on March 4, 2010.  He previously served as the Inspector General for the Los Angeles Police Commission from 2003 to 2010 and as an Assistant Inspector General from 2001 to 2003.  From 1995 to 1999, Birotte served as an Assistant United States Attorney for the Central District of California.  He started his legal career as a Deputy Public Defender in the Los Angeles County Public Defender’s Office from 1991 to 1995.  Birotte serves as Co-Chair of the AGAC’s Terrorism/National Security Subcommittee, and as a member of the Border and Immigration Law Enforcement Subcommittee, Civil Rights Subcommittee, Cyber/Intellectual Property Subcommittee, Violent and Organized Crime Subcommittee and White Collar/Fraud Subcommittee.

Thomas E. Delahanty II was presidentially appointed and sworn in as the U.S. Attorney for the District of Maine on July 1, 2010.  Prior to his appointment, he served as a Justice for the Maine Superior Court for more than 26 years, and as Chief Justice from 1990 until 1995.  From 1981 until 1983, he was a partner in the firm Delahanty & Longley.  He previously served as the U.S. Attorney for the District of Maine from 1980 to 1981.  Prior to this, Delahanty served as a District Attorney for Prosecutorial District 3 for Androscoggin, Franklin and Oxford Counties (1975 to 1980); as a County Attorney and Assistant County Attorney with the Androscoggin County Attorney’s Office (1971 to 1975); and as an associate at Marshall, Raymond & Beliveau (1970 to 1974).  Delahanty serves as Chair of the AGAC’s Controlled Substances and Asset Forfeiture Working Group, as a member of the AGAC’s Medical Marijuana Working Group and the AGAC’s Border and Immigration Law Enforcement Subcommittee, and as a participant in the department’s Arab American and Muslim Outreach Program. 

Zachary T. Fardon was presidentially appointed and sworn in as the U.S. Attorney for the Northern District of Illinois on Oct. 23, 2013.  Prior to his appointment, Fardon was a partner at the law firm of Latham & Watkins where he served as the Chair of the Litigation Department in their Chicago office.  Previously, Fardon served as the First Assistant United States Attorney in the Middle District of Tennessee from 2003 to 2006 and as an Assistant United States Attorney in the Northern District of Illinois from 1997 to 2003.  He began his legal career working as an Assistant Public Defender in the Nashville Metropolitan Public Defender’s Office from 1996 to 1997 and as an associate at the law firm of King & Spalding from 1992 to 1996.

Wifredo A. Ferrer was presidentially appointed and sworn in as the U.S. Attorney for the Southern District of Florida on May 4, 2010.  Ferrer previously served as an Assistant County Attorney and as Chief of the Federal Litigation Section in the Miami-Dade County’s Attorney’s Office from 2006 to 2010.  From 2000 until 2006, he was an Assistant United States Attorney in the United States Attorney’s Office in the Southern District of Florida. While at the U.S. Attorney's Office, he served in the Public Integrity and National Security Section, the Economic Crimes Section, the Major Crimes Section, and the Appellate Division of the Office.  Prior to that, he had been Counsel and Deputy Chief of Staff to the United States Attorney General from 1995 to 2000.  From 1994 to 1995, Ferrer was a White House Fellow and Special Assistant to the United States Secretary of Housing and Urban Development.  From 1991 to 1994, he had been a Litigation Associate with Steel Hector & Davis in Miami, Florida.  From 1990 until 1991, Ferrer was a law clerk to then- District (now 11th Circuit) Judge Stanley Marcus.  Ferrer serves as Vice Chair of the AGAC’s Controlled Substances and Asset Forfeiture Working Group. 

Kerry B. Harvey was presidentially appointed and sworn in as the U.S. Attorney for the Eastern District of Kentucky on May 14, 2010.  Harvey previously served as the General Counsel and Acting Inspector General of the Kentucky Cabinet for Health and Family Services from 2008 to 2010.  He was a partner at Owen, Harvey, and Carter from 1991 to 2008; at Prince, Harvey, Brien & Carter from 1986 to 1991; and at Prince & Harvey from 1984 to 1986. Mr. Harvey worked as the Marshall County, Kentucky, Attorney from 1986 to 1994.  He began his legal career as an associate at Brown, Todd & Heyburn from 1982 to 1984.  Harvey serves as a member of the AGAC’s Health Care Fraud Working Group. 

Zane David Memeger was presidentially appointed and sworn in as the U.S. Attorney for the Eastern District of Pennsylvania on May 10, 2010.  Prior to his appointment, Memeger was a Partner at Morgan, Lewis & Bockius, LLP from 2006 to 2010.  Previously, Memeger had served as an Assistant United States Attorney in the United States Attorney’s Office for the Eastern District of Pennsylvania from 1995 until 2006.  From 1991 until 1995, Memeger was an Associate at Morgan, Lewis & Bockius, LLP.  Memeger serves as a member of the AGAC’s Cyber/Intellectual Property Subcommittee, LECC/Victim/Community Issues Subcommittee, Violent and Organized Crime Subcommittee, White Collar/Fraud Subcommittee and Health Care Fraud Working Group.

Timothy Q. Purdon was presidentially appointed and sworn in as the U.S. Attorney for the District of North Dakota on August 24, 2010.  Prior to his appointment, Purdon was a partner at Vogel Law Firm from 2005 to 2010; prior to his promotion he also served as an associate at the firm.  From 1996 until 2001, Purdon worked as an associate at Dickson & Purdon, and he became a partner in the firm in 2001. From 1995 through 1996, he was an associate at Olson & Cichy.  Purdon has also served as a law clerk for the Honorable Bruce M. Van Sickle of the United States District Court for the District of North Dakota.  Purdon serves as a member of the AGAC’s Border and Immigration Law Enforcement Subcommittee, Native American Issues Subcommittee, Environmental Issues Working Group, and Local Government Coordination Working Group.

Sarah R. Saldaña was presidentially appointed and sworn in as the U.S. Attorney for the Northern District of Texas on Sept. 29, 2011.  She previously served as an Assistant United States Attorney for the Northern District of Texas since 2004, serving as Deputy Criminal Chief for Fraud and Public Corruption since 2009. Ms. Saldaña was an attorney for Baker Botts, L.L.P, from 1987 to 1998, and Haynes Boone from 1985 to 1987. Following law school, she served as a judicial clerk to the Honorable Barefoot Sanders, U.S. District Court Judge for the Northern District of Texas, from 1984 to 1985.  Saldaña serves as a member of the AGAC’s Border and Immigration Law Enforcement Subcommittee, Cyber/Intellectual Property Subcommittee, LECC/Victim/Community Issues Subcommittee and White Collar/Fraud Subcommittee.

The full AGAC membership is listed below:

Loretta E. Lynch, United States Attorney, Eastern District of New York, Chair
Sally Quillian Yates, United States Attorney, Northern District of Georgia, Vice Chair
David Barlow, United States Attorney, District of Utah
Andre Birotte Jr. – Central District of California
Thomas E. Delahanty II – District of Maine
Zachary T. Fardon – Northern District of Illinois
Wifredo A. Ferrer – Southern District of Florida
Richard S. Hartunian, United States Attorney, Northern District of New York
Kerry B. Harvey – Eastern District of Kentucky
Barbara L. McQuade, United States Attorney, Eastern District of Michigan
Zane D. Memeger – Eastern District of Pennsylvania
Wendy J. Olson, United States Attorney, District of Idaho
Timothy Q. Purdon – District of North Dakota   
Sarah R. Saldan͂a – Northern District of Texas
Ronald W. Sharpe, United States Attorney, District of the Virgin Islands
Anne Tompkins, United States Attorney, Western District of North Carolina
Ronald C. Machen, United States Attorney, District of Columbia, ex officio
Daniel Bella, Criminal Chief, Northern District of Indiana, ex officio
Suzanne Bauknight, Civil Chief, Eastern District of Tennessee, ex officio
Robert Zauzmer, Appellate Chief, Eastern District of Pennsylvania, ex officio

Defendant Owns and Operates Pharmacies

DALLAS — Linus Nwosu was sentenced on Thursday, by U.S. District Judge Reed C. O’Connor, to 24 months in federal prison, following his guilty plea in June 2013 to one count of conspiracy to commit structuring.  He was ordered to surrender to the Bureau of Prisons on February 25, 2014.  The announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

Nwosu has also agreed to amend his taxes, and he has forfeited the $476,190 to the government.  According to the order setting conditions of release, Nwosu is a resident of Southlake, Texas.

According to documents filed in the case, Nwosu owns and operates two pharmacies with his wife in the Dallas/Fort Worth area under the name GeneRx Discount Pharmacy, Inc.  According to the factual resume, from on or about October 12, 2011, to May 16, 2012, Nwosu and his wife agreed to structure GeneRx’s cash deposits in order to avoid the currency reporting requirements.  During this time, both he and his wife made approximately 77 cash deposits for a total of $476,190, and each of the deposits was made with the intent to avoid the currency reporting requirements.  They received cash receipts from GeneRx on a daily basis and divided the cash into amounts under $10,000.

The case was investigated by Internal Revenue Service Criminal Investigation.  Assistant U.S. Attorney Brian Poe was in charge of the prosecution.

Saudi Student Was Sentenced to Life in Prison for
Attempted Use of Weapon of Mass Destruction

DALLAS — The U.S. Court of Appeals for the Fifth Circuit in New Orleans, Louisiana, issued a nine-page published opinion yesterday affirming the conviction and sentence of Khalid Ali-M Aldawsari, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

Aldawsari was convicted on June 27, 2012, on an indictment charging one count of attempted use of a weapon of mass destruction in connection with his purchase of chemicals and equipment necessary to make an improvised explosive device (IED) and his research of potential U.S. targets, including persons and infrastructure.  He was lawfully in the U.S. on a student visa and enrolled at South Plains College, near Lubbock, Texas.

In its opinion, the Court rejected each of Aldawsari’s arguments, holding that (1) the district court properly denied his motion to suppress evidence gathered pursuant to the Foreign Intelligence Surveillance Act; (2) the district court correctly instructed the jury on the crime of attempt; and (3) Aldawsari’s sentence is reasonable.  The opinion was released less than two months after the three-judge panel heard oral argument in the case. 

“The successful resolution of this case would not have been possible without the tireless efforts of many dedicated public servants,” said U.S. Attorney Saldaña.  “I commend their efforts.”

Assistant U.S. Attorney Matthew J. Kacsmaryk was the lead appellate counsel, and he was assisted by Senior Department of Justice Appellate Counsel John F. De Pue.  The district court case was investigated by the FBI’s Joint Terrorism Task Force, which includes many federal, state and local partners, with assistance from the Lubbock Police Department and the Texas Tech Police Department.  The trial prosecution was handled by Assistant U.S. Attorneys Jeffrey R. Haag, Denise Williams, and Matthew J. Kacsmaryk and Trial Attorney David Cora from the Counterterrorism Section of the Justice Department’s National Security Division. 

DALLAS — David Kevin Lewis, the chairman and director of field operations of Always Consulting, Inc. (ACI), an oil and gas well promotions company with offices in Richardson, Texas, was sentenced this morning, by Chief U.S. District Judge Sidney A. Fitzwater, to 30 years in federal prison and ordered to pay approximately $2.5 million in restitution, following his conviction at trial in September 2013 on one count of conspiracy to commit securities fraud and 23 counts of securities fraud.  Judge Fitzwater remanded Lewis, aka “David Shane Lewis” and “DW,” 52, of Albany, Kentucky, into custody.  Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

Lewis’s co-defendants in the case, Bruce Kyle Griffith, 59, of Dallas, and Thomas Alden Markham, Jr., 63, of Plano, Texas, each pleaded guilty to their roles and were sentenced in December 2013 to 100 months and 21 months, respectively.  Griffith, who was the president and CEO of ACI, pleaded guilty to one count of conspiracy to commit securities fraud and one count of securities fraud.  Markham, ACI’s chief geologist, pleaded guilty to one count of misprision of a felony.  Griffith, who is in custody, was also ordered to pay approximately $2.5 million in restitution and Markham, who must surrender to the Bureau of Prisons next month, was ordered to pay approximately $1.5 million in restitution.

Lewis, Griffith and Markham conspired together to scheme to obtain money and property by making untrue statements and omitting material facts to defraud investors, located throughout the United States, who purchased interests in well program units, representing fractional, undivided interests in oil, gas or other mineral rights and investment contracts.

They sent investment documents and monthly investment newsletters from ACI to induce investors to invest money and purchase interests in the Rattlesnake Springs Drilling Program or other oil and gas drilling programs.  Rattlesnake, was one of several investment programs offered and sold by ACI to investors, was to be located in Osage County, Oklahoma.

They also used ACI sales employee “fronters” to contact prospective investors and referred interested and financially-able investors to ACI employee “closers,” including Lewis and Griffith, who contacted the interested investors to convince them to invest.  The “fronters” were equipped with scripts, pitches and talking points all touting the investment and designed to make prospective investors believe that ACI’s programs were potentially profitable investments.

They also provided the ACI sales employees with a “do not call” list, entitled “Undercover Regulators,” which listed contact information of individuals the defendants suspected of being state or federal regulators posing as potential investors.

The defendants misapplied and converted the Rattlesnake Springs Drilling Program investor funds to their own use and benefit, and the use and benefit of others, including the purchase of real and personal property and to pay for expenses of other ACI programs.

The defendants falsely stated that:  ACI would perform all necessary services to complete the Rattlesnake Springs Drilling Program; ACI would use investor funds to begin site preparation, drilling, testing and completion of the Rattlesnake Springs Drilling Program wells; ACI would pay all costs necessary to get the wells into production for approximately $3.5 million; ACI had influence inside the Osage Nation in Oklahoma and could acquire oil and gas leases on terms unavailable to others; pipelines had been laid; and Griffith begin in the oil and gas business in 1985 as a private pilot flying oil executives and equipment to foreign countries.

The defendants concealed from investors that:  Rattlesnake investor funds were being comingled with funds from other ACI projects and were being used to pay operating expenses of other ACI projects; most of Rattlesnake’s investor funds had been misapplied and diverted an no longer available to drill the promised 20 wells; funds invested in Rattlesnake had been diverted, for the use and benefit of the defendants; ACI relied on investor funds to operate and upon production revenue from oil and gas wells.

ACI’s offering memorandum identified “DW” and “Griffith” as registered operators in Texas and Oklahoma, but omitted that “DW” was Lewis and that Lewis and Griffith weren’t registered to sell securities in Texas.  ACI represented that “DW” (Lewis) had 25 years’ experience in finance, investing, management and the oil and gas industry, but omitted facts including:  Lewis was a convicted felon, having been convicted in 2000 of securities fraud and conspiracy to commit mail fraud, in connection with oil and gas offerings; Lewis was under federal court orders to pay approximately $2.2 million in restitution to previously defrauded oil and gas investors; and Lewis was under an injunction barring him from violating federal securities laws in connection with oil and gas offerings.

ACI’s offering memorandum also noted that Griffith had 20 years’ experience in the oil and gas industry, having started out as a private pilot with a twin engine rating and instrument rating.  Griffith, however, was never a pilot, had little experience in the industry, and in fact, was a convicted felon, having been specifically convicted in federal court of bank robbery in 1994 and conspiracy to possess and utter counterfeit federal reserve notes in 1989.

ACI’s offering stated that Markham had more than 30 years in the oil and gas industry as a geologist, supervisor and manager, but failed to disclose he was a convicted felon, having been convicted of mail fraud in 2000 in connection with an oil and gas offering, and that as part of his sentence, he was under court order to pay nearly $400,000 in restitution to defrauded investors.

Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 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’s 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.  Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants.  For more information on the task force, visit www.stopfraud.gov.

The case was investigated by the Texas State Securities Board (TSSB) and the FBI.  Assistant U.S. Attorney Joseph Revesz and TSSB Enforcement Attorney Suzanne Steinmetz prosecuted.

Defendant to Pay $102,836 in Restitution

DALLAS — Adnan Z. Khan was sentenced this afternoon by U.S. District Judge Jorge A. Solis to 12 months and one day in federal prison and ordered to pay $102,836 in restitution, following his guilty plea in October 2013 to one count of aiding and assisting in the preparation of fraudulent tax returns.  Khan was arrested in June 2013 but was later released on bond.  According to the order setting conditions for his release, Khan resides in Wylie, Texas.  He must surrender to the Bureau of Prisons on February 26, 2014.  Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

According to the factual resume filed in the case, Khan used his parents’ residence in Dallas to prepare federal tax returns and supporting schedules and forms for clients.  However, Khan falsified items on the clients’ returns, without their knowledge, to obtain large tax returns.

For example, according to the factual resume, Khan would falsify Schedule A medical expenses, moving expenses, job expenses, education credits and residential energy credits to increase the tax refunds, and instead of providing clients with a copy of the filed return, he would provide them with another tax return that reflected a smaller refund.  On many of the filed returns, Khan listed one of his personal bank accounts and many of the tax refunds were paid to those accounts, and Khan kept a large portion of the refund, without the client’s knowledge.  On several returns, Khan changed the taxpayer’s address to his address so that any IRS correspondence would be mailed to him and not the client.  The copy of the return Khan provided to the client, however, reflected the client’s correct address.

The case was investigated by Internal Revenue Service Criminal Investigation.  Assistant U.S. Attorney J. Nicholas Bunch was in charge of the prosecution.

Treated Disabled Federal Workers

DALLAS — Psychologist Michael Ellis Wolf, 62, of Dallas, was remanded into federal custody today after pleading guilty, before U.S. District Judge Jorge A. Solis, to an Information charging one count of health care fraud.  Wolf faces a maximum statutory penalty of 10 years in federal prison, a $250,000 fine and restitution, and he agrees to surrender his license to practice psychology.  Sentencing is set for May 7, 2014.  Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

Wolf provided psychotherapy to individuals, including civilian employees of the federal government who sustained on-the-job injuries or employment-related occupational illness.  The Federal Employees Compensation Act (FECA) provides disability compensation benefits and payment for medical and rehabilitation care for federal civilian employees who sustain on-the-job injuries or employment-related occupational illness.  The FECA is a health care benefit program administered by the U.S. Department of Labor (DOL), Office of Workers Compensation Program.

As part of his scheme to defraud a health care benefit program, Wolf filed claims for payment of services that were never rendered and for services that were rendered in far less quantities than billed.

For example, through his billings, Wolf claimed he provided therapy for one particular injured federal employee, from January 2008 through mid-2013, seven days a week, when he in truth and fact he would only provide it once or twice a week, for 60 minutes.  He also falsely claimed through billings that he provided therapy to this individual on holidays and on Sundays, and that on multiple days, he provided eight hours of therapy, per day, for this patient.  Wolf also falsely claimed, through billings, that he provided four-eight hours of explanations to this patient’s family and employers multiple times a week, when in fact, he only offered occasional phone or in-office consultation with the family.

During this time period, the total amount billed by Wolf, on behalf of this patient, was more than $1.9 million.  Of the amount billed, Wolf was paid more than $1 million.

The investigation is being conducted by DOL Office of Inspector General and the U.S. Postal Service Office of Inspector General.  Assistant U.S. Attorney P. J. Meitl is in charge of the prosecution.

Defendants Owned/Operated a Medical Supply Business and Lab in Arlington

DALLAS — Following a one-week trial before U.S. District Judge Jorge A. Solis, a federal jury has convicted Pamela Adenuga, 39, and her husband, Kehinde (Kenny) Adenuga, 46, both of Arlington, Texas, 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, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

Judge Solis remanded the defendants into custody.  Each defendant faces a maximum statutory penalty of 10 years in federal prison and a $250,000 fine on each count; restitution could also be ordered.  A sentencing date was not set.

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 that several Medicaid beneficiaries, who HGMS billed for incontinence supplies, did not need them or they were 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 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.  The government also introduced evidence that HGMS billed these Medicaid beneficiaries 96 times for adult incontinence supplies – each and every billing was 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. Attorneys Mindy Sauter and Michael C. Elliott are in charge of the prosecution.

DALLAS — Jesse Brister, aka “Bozo,” was sentenced this morning, by Chief U.S. District Judge Sidney A. Fitzwater, to 55 months in federal prison, following his guilty plea in September 2013 to one count of mailing threatening communications.  Brister, 28, of Conroe, Texas, is presently in custody in the Texas prison system in an unrelated case.  The announcement was made today by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

According to documents filed in the case, Brister has identified himself as a proud member of the Aryan Brotherhood of Texas (ABT); Texas prison officials also list him as a member of that security threat group.  In March 2013, Brister was incarcerated in the Telford Unit in New Boston, Texas.   

On March 21, 2013, Brister wrote and signed a letter addressed to the U.S. Attorney in the Earle Cabell Federal Building in Dallas.  In this letter, Brister wrote, among other things, that

“[p]roudly, I am writing this letter to this Federal Building and . . . but I am intending it to             the Federal Department point blank.  Our demands are simple; you have apprehended      members of our family; Big Terry, Jive, Baby Huey, and others in our Dallas/Ft. Worth        region. … If your federal government does not drop the current charges on these ABT             members my circle/family will start with DA’s not involved in these cases . . . We have a list of        names Judges included.”

At the time of this letter, there was a racketeering indictment pending in the Southern District of Texas against the ABT and its leaders and soldiers.  All of the ABT members mentioned above in Brister’s letter were under federal indictment in Houston.  In a second letter Brister sent to the U.S. Attorney’s Office, dated March 28, 2013, Brister urged the Feds to make a peace treaty with the ABT because, “trust me its not fun having to search the DA’s, U.S. Attorneys, Judges, and so on and so forth vehicles everyday for bombs. . . .”

Approximately 10 days after Brister wrote his first letter, Kaufman County District Attorney Mike McLelland and his wife were gunned down in their home in what appeared to be a well-orchestrated assassination.

Brister was interviewed by federal and state law enforcement officers regarding this letter, and others he sent.  He admitted to writing these letters, and although he initially claimed otherwise, he ultimately denied any involvement of the ABT in any of the Kaufman County murders. (Assistant District Attorney Mark Hasse had been murdered earlier in 2013.)

The investigation into these threats was conducted by the Kaufman County Sheriff’s Office, the Texas Rangers (Texas Department of Public Safety), the FBI and other local, state and federal law enforcement agencies.  Criminal Chief Assistant U.S. Attorney Chad Meacham prosecuted.

WICHITA FALLS, Texas —Janis Hernandez, 31, of Electra and Killeen, Texas, has been sentenced by U.S. District Judge Reed C. O’Connor, to 136 months in federal prison following her guilty plea in June 2013 to an indictment charging conspiracy to possess with intent to distribute and to distribute methamphetamine, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

All seven defendants charged in the case have pleaded guilty and all but one has been sentenced:

                       Anthony Rueben Johnston, 28, to 480 months (40 years) in federal prison
                       Rachel Dawn Billen, 21, to 36 months
                        Louis Griego, Jr., 44, to 168 months
                        James Allen Holley, 34, to 142 months
                        Christina Gail Thompson, 32, to 42 months

Co-conspirator Darren Scott Murphy, Jr., 26, is scheduled to be sentenced by Judge O’Connor on January 27, 2014.  Each of the defendants pleaded guilty earlier this year to one count of conspiracy to possess with intent to distribute methamphetamine.

According to documents filed in her case, Hernandez admitted that on multiple occasions between August and November 2012, she distributed and facilitated the distribution of methamphetamine in Electra and Wichita Falls, Texas.  Co-conspirator Murphy supplied the methamphetamine.  She further admitted that she acted as an intermediary and broker to distribute methamphetamine in Wichita Falls and introduced to Murphy to others so they could obtain methamphetamine from him.  Hernandez allowed Murphy to distribute methamphetamine from her home in Electra. 

The Texas Department of Public Safety, the Wichita Falls Police Department, the Wichita County District Attorney’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. 

Assistant U.S. Attorney Mary F. Walters is in charge of the prosecution

DALLAS — Misael Perla, a/k/a “Irving” and “Weasal25, of Dallas, pleaded guilty this morning, before U.S. Magistrate Judge Irma C. Ramirez, to two counts of possession of heroin with intent to distribute, the use of which caused the death of victims Alexandra Julia Moreno, 20, of Irving, Texas, and Cassidy Seward, 18, of Grapevine, Texas.  Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

According to the factual resume filed in the case, Perla, a confessed heroin dealer, admitted that on July 16, 2013, he knowingly distributed heroin to Moreno, a woman he had recently met at a club.  Perla provided the heroin to Moreno while she was staying with him at his mother’s home and he watched as she used the heroin in his presence.  Later that evening and into the next morning, Perla attempted to wake Moreno, and he became concerned that she may have overdosed.  He put her into the bed of a truck, drove to Baylor Medical Center at Irving and left her body with medical personnel at the emergency room.  Moreno was pronounced dead shortly after her arrival at the hospital and a subsequent autopsy report concluded that she “died as the result of the toxic effects of heroin.”

Additionally, Perla also admits in the factual resume that he knew Cassidy Seward used heroin and that she would take some heroin from a supply at his residence.  After staying with the defendant one evening, Seward overdosed on drugs taken from his home.  After her family found her unresponsive, paramedics arrived and took her to the hospital, where she was soon pronounced dead.  A subsequent autopsy report concluded that she died from the “mixed drug toxicity” of heroin and methamphetamine.

On each count of conviction, Perla faces a statutory penalty of at least 20 years and up to life in prison and a $5 million fine.  A sentencing date was not set.

The investigation was led by the Irving Police Department and the Grapevine Police Department, with assistance from U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).

Assistant U.S. Attorney Jason Schall is in charge of the prosecution.

LUBBOCK, Texas — Inoe R. Valdez, Jr., 43, a former deputy sheriff with the Yoakum County Sherriff’s Department (YCSD), was sentenced this morning by U.S. District Judge Sam R. Cummings to serve 48 months in federal prison and a year of supervised release on a federal conviction stemming from his involvement in a cocaine distribution conspiracy, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. He must surrender to the Bureau of Prisons by February 14, 2014.

Valdez pleaded guilty to one count of unlawful use of a communications facility. 

Valdez admitted that from July 2009 until approximately August 2010, he used a cellphone to commit, cause and facilitate a conspiracy to distribute and possess with the intent to distribute cocaine and distribution and possession with intent to distribute cocaine. 

According to documents filed in the case, in February 2010, investigators with the Texas Department of Public Safety (DPS) learned that Valdez was associating with a particular individual who was suspected of trafficking controlled substances in Yoakum County, Texas.  Following a traffic stop of this individual, DPS learned that this individual had Valdez’s cell phone number saved in his cell phone and in fact, had made 15 calls to, and received one call from, Valdez, during the period November 1, 2009 to March 18, 2010.

This individual advised DPS that Valdez had instructed him/her to call or text him and say that he/she “had some information” for Valdez, which would be the signal for Valdez to go to that individual’s home so they could discuss narcotics-related matters.  This individual advised that in winter 2009, Valdez asked him/her for three to four ounces of cocaine to give to another individual in Brownsfield, Texas.  This individual sold Valdez three ounces of cocaine for $2,100.  This individual also advised DPS that this was not the only time he/she furnished cocaine to Valdez. 

In June 2010, a person, working at the direction of the DPS, met Valdez and asked Valdez for $50 worth of cocaine.  Valdez advised this person that he would provide it in a day or two.  This person told Valdez that they had a friend who was going to send them cocaine from Mexico.  Valdez advised that he would purchase one-quarter of a kilogram of cocaine per week at $500 per ounce and sell it for $800 per ounce.  Valdez also indicated an interest in receiving marijuana.

When DPS investigators interviewed Valdez in November 2011, he stated that his financial debts had become overwhelming, and he had discussed a joint venture with the first individual to smuggle 200-300 pounds of marijuana to Oklahoma or Kansas.  Valdez advised that this venture never materialized, but that this same individual later approached Valdez about selling cocaine and Valdez agreed.

Valdez admitted that from summer 2009 to summer 2010, while he worked as a deputy in the YCSD, he distributed approximately 1.5 pounds of cocaine.  Valdez stated that he stopped selling cocaine in August 2010 because he learned he was under investigation; shortly thereafter, he resigned from the YCSD.

The investigation was conducted by the Texas DPS, the FBI, the Yoakum County District Attorney’s Office and the Yoakum County Sheriff’s Office.  Assistant U.S. Attorney Jeffrey Haag prosecuted.

DALLAS — U.S. Attorney Sarah R. Saldaña announced today that the Northern District of Texas collected $31,201,427.29 in criminal and civil actions in Fiscal Year 2013.  Of this amount, $12,400,303.78 was collected in criminal actions and $18,801,123.51 was collected in civil actions. 

Additionally, Northern District of Texas worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $1,323,331.29 in cases pursued jointly with these offices.    Of this amount, $19,567.77 was collected in criminal actions and $1,303,763.52 was collected in civil actions.

Attorney General Eric Holder announced on Thursday that the Justice Department collected approximately $8.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2013. The more than $8 billion in collections in FY 2013 represents nearly three times the appropriated $2.76 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.

“The department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the American people,” said Attorney General Holder. “It is critical that Congress provide the resources necessary to match the department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment.”

“The U.S. Attorney’s Office is dedicated to protecting the public and recovering funds for the federal treasury and victims of federal crimes,” said U.S. Attorney Saldaña.  “For example, in one month alone, the district recovered $6.6 million in one civil health care fraud case.  This kind of recovery not only returns funds to the defrauded federal program, but it serves to deter others from engaging in fraud.”

The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims.  The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss.  While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.

The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws.  In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.

Dr. Edgar A. Lockett, Jr. Formerly Resided and Practiced in Mineral Wells and McAllen, Texas

AMARILLO — Edgar A Lockett, Jr., was sentenced this morning by U.S. District Judge Mary Lou Robinson to serve 45 months in federal prison and three years of supervised release following his conviction at trial in September 2013 on six felony tax evasion charges, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

Lockett must pay restitution that amounts to interest and penalty and taxes that are definitively determined or adjudicated to be the losses resulting from the crimes of conviction.

After a four-day trial, before U.S. District Judge Mary Lou Robinson, a federal jury in Amarillo, Texas, convicted Edgar A Lockett, Jr., on all six counts of the indictment charging tax evasion.

The government presented evidence at trial that Lockett is a self-employed anesthesiologist who currently resides in Amarillo; he formerly resided and practiced in other cities in Texas, including Mineral Wells and McAllen. Lockett most recently billed under the name of Medical & Health Alliance Ministries.

According to evidence the government presented, Lockett has not filed income tax returns since 1999, except for a joint return filed with his spouse for tax year 2007. He owes the United States $1,432,740 in unpaid income taxes for tax years 2000 through 2010.

The government presented further evidence that Lockett concealed from the IRS the nature, extent and location of his assets by placing funds and property in the names of nominee companies and secreting his income in bank accounts that he opened using his deceased father’s name and social security number.

The investigation was conducted by IRS Criminal Investigation.

Defendant Also Ordered to Pay $880,000 in Restitution

DALLAS — Godwin Umotong, 58, was sentenced, by U.S District Judge David C. Godbey, to 72 months in federal prison and ordered to pay $880,000 in restitution following his conviction at trial in April 2013 on charges stemming from his involvement in the operation of Euless Healthcare Corporation (EHC) and Medic Healthcare Incorporated (Medic). Umotong is the last of six defendants sentenced in the conspiracy. Judge Godbey ordered that Umotong, a resident of Houston, surrender to the Bureau of Prisons in March. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

Umotong, an employee of EHC and Medic, and coconspirator Comfort Gates, 48, an employee of Medic, were each convicted at trial on one count of conspiracy to commit health care fraud. Umotong was convicted on five counts of health care fraud.

Other defendants in the case who have been convicted and sentenced are listed below. Each was also ordered to pay restitution of amounts ranging from approximately $195,000 to $1.4 million.

Ovsanna Agopian, 58, of Houston, 120 months in federal prison

Boghos Babadjanian, 55, of Sherman Oaks, Calif., probation

Leslie Omagbemi, 56, of Dallas, 30 months in federal prison

Munda Massaquoi, 69, of Houston, 37 months in federal prison

Comfort Gates, 48, of Houston, 72 months in federal prison

ECH was located on West Bedford Euless Road in Hurst Texas, and Medic, which operated from October 2009 to May 2011, was located on Bonhomme Road in Houston. Agopian, 58, was the operator of both EHC and Medic.

According to documents filed in the case and evidence presented at trial, Agopian, Umotong, Omagbemi, Massaquoi and Gates conspired together to submit, or cause to be submitted, fraudulent claims to Medicare for diagnostic tests and office visits. Agopian recruited unlicensed doctors to work for EHC and Medic by telling them that they would treat beneficiaries in the beneficiaries’ homes. Medicare does not pay for services performed by unlicensed persons. Nevertheless, these recruits went to beneficiaries’ homes and purported to conduct medical examinations, including ordering diagnostic tests. In total, more than $2.7 million was fraudulently billed, and of that amount, Medicare paid more than $1.3 million.

The case was investigated by the Dallas Health Care Fraud Prevention and Enforcement Action Team (HEAT) Strike Force, which includes the U.S. Department of Health and Human Services - Office of Inspector General (HHS-OIG), the FBI and the Texas Attorney General’s Medicaid Fraud Control Unit. Assistant U.S. Attorney Michael Elliott prosecuted.

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,700 defendants who have collectively billed the Medicare program for more than $5.5 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

To learn more about the HEAT Strike Force, go to: www.stopmedicarefraud.gov.

LUBBOCK, Texas—Jose Francisco Madrigal, Jr., 43, of Plainview, Texas, was sentenced last Friday, by U.S. District Judge Sam R. Cummings, to 210 months in federal prison following his guilty plea in August 2013 to one count of production of child pornography.  Judge Cummings remanded Madrigal, who had been on bond, into custody.  The announcement was made today by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

In October 2012, according to plea documents filed in the case, Madrigal, using a digital camera and aiming the camera through a hole in a bathroom wall, took sexually explicit videos of a female child, while the child was taking a shower.

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 investigation was conducted by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Plainview Police Department.  Assistant U.S. Attorney Steven M. Sucsy prosecuted.

Defendant Shot an Individual at Stripes Convenience Store in Lubbock in April 2013

LUBBOCK, Texas — Jarrod Charles Gauna, 23, of Lubbock, Texas, was sentenced, by U.S. District Judge Sam R. Cummings, to 10 years in federal prison on a federal firearm conviction stemming from his shooting and injuring an individual during a drug transaction at a convenience store in Lubbock this past spring.  The announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

Gauna pleaded guilty to one count of using, carrying, and discharging a firearm during and in relation to a drug trafficking crime and aiding and abetting.  According to documents filed in the case, during a methamphetamine trafficking crime on April 20, 2013, Gauna shot and injured an individual with a Sig Sauer 9mm semi-automatic pistol at the Stripes convenience store on 50th Street in Lubbock.

The investigation revealed that Gauna told an individual that he needed to get out of town because he’d shot someone who had stolen methamphetamine from him.  Gauna told another individual that he was getting ready to sell one-eighth of an ounce of methamphetamine to individual when that individual grabbed the drugs and ran.  Gauna said he fired at the individual and possibly hit him in the foot.

The investigation also revealed that Gauna and others had disposed of the firearm by burying it in cement, but in May 2013, investigators were able to retrieve the firearm from a bucket of cement and identified it as the one used in the shooting.

The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Lubbock Police Department.   Assistant U.S. Attorney Jeffrey Haag prosecuted.

LUBBOCK, Texas— A Minnesota man, Shannon Lee Callahan, 39, appeared before U.S. District Judge Sam R. Cummings and pleaded guilty to an indictment charging failure to register and update registration as a sex offender.  He faces a maximum statutory penalty of 10 years in federal prison and a $250,000 fine.  Judge Cummings ordered a presentence investigation report with the sentencing date to be set after the completion of that report.  Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

According to documents filed in the case, in 1992, Callahan was sentenced to a five-year term of probation after having earlier pleaded guilty to two counts of criminal sexual conduct in Dakota County, Minnesota.  Based on these convictions, Callahan was considered a sex offender under the Sex Offender Registration and Notification Act (SORNA), and was required to register as such under state and federal law.  Under Texas law, persons convicted of this offense have a lifetime obligation to register as a sex offender in Texas.

Callahan moved from Minnesota to Big Lake, Texas, in May 2013, but he never registered as a sex offender in Texas, nor did he inform any authorities in Minnesota that he had left his Minnesota residence and had moved to Texas where he had gained employment.

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 investigation was conducted by the U.S. Marshals Service.  Assistant U.S. Attorney Steven M. Sucsy is in charge of the prosecution.

LUBBOCK, Texas — Joshua Matthew Miranda, 29, was sentenced this morning, by U.S. District Judge Sam R. Cummings, to 240 months (20 years) in federal prison, following his guilty plea in September 2013 to one count of receiving child pornography.  Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

Miranda has been in custody since his arrest in the parking lot of a church in Lubbock, Texas, in early May 2013, after arranging to meet an undercover law enforcement officer who had posed as a 15-year-old girl with whom Miranda had exchanged emails of a sexual nature.  According to the complaint filed in the case, at the time of his arrest, Miranda had a box in his vehicle that contained numerous sex toys, ropes, gags, a blind fold, duct tape and condoms.  A federal grand jury later charged Miranda with attempted enticement of a child, production of child pornography and receipt and possession of child pornography.  He pleaded guilty to the receipt count and received the statutory maximum for that offense.

After his arrest, a state search warrant was executed at his residence in Lubbock, and law enforcement located several images and videos of child pornography on Miranda’s computer.  Miranda admitted that he downloaded from the Internet numerous child pornography images and videos, including videos of prepubescent minors engaged in sexually explicit conduct.

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

The investigation was conducted by the Lubbock Police Department and the FBI.  Assistant U.S. Attorney Amanda R. Burch prosecuted.

LUBBOCK, Texas—Stephen Carpenter, 33, of Slaton, Texas, was sentenced this morning, by U.S. District Judge Sam R. Cummings to 10 years in federal prison, following his guilty plea in August 2013 to one count of possession of child pornography, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

According to plea documents filed in the case, Carpenter used a file-sharing program to search for depictions of minors engaged in sexually explicit conduct.  Carpenter downloaded and viewed many of these depictions in the form of video files, and on February 14, 2013, Carpenter was found to be in possession of a computer containing depictions of minors engaged in sexually explicit conduct.

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

The investigation was conducted by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Slaton Police Department.  Assistant U.S. Attorney Steven M. Sucsy prosecuted.

DALLAS — Lamonica Phillips and Pamela Gail Willis, aka Pamela Gayle Knight, both of Dallas, appeared today before U.S. Magistrate Judge Renee Harris Toliver, and each pleaded guilty to a federal felony offense stemming from their embezzlement of funds from Phillips’ former employer, announced US. Attorney Sarah R. Saldaña of the Northern District of Texas. 

Specifically Phillips and Willis, both 44, each pleaded guilty to one count of conspiracy to commit mail fraud.  Each faces a maximum statutory penalty of five years in prison, a $250,000 fine and restitution.  A sentencing date was not set.

In a related case, Audrey Starr, 51, of Oklahoma City, is charged with one count of conspiracy to commit mail fraud and four substantive counts of mail fraud. If convicted the conspiracy count carries a maximum statutory penalty of five years in federal prison and each of the substantive mail fraud counts carries a maximum statutory penalty of 20 years in prison.  Each count also carries a maximum statutory penalty of $250,000.

According to documents filed in the case, Phillips and Willis devised and carried out a scheme to embezzle money from Phillips’ employer, Industry Consulting Group (ICG).  Starr allegedly became a conspirator in the scheme through knowingly receiving and using stolen funds. 

ICG is a tax consulting business based in Dallas that focuses on tax valuation of properties and the maintenance of tax portfolios.  As part of their business ICG, on behalf of their clients, pays taxes on home mortgages and provides valuations of properties in order to contest tax appraisals.

As part of her duties, Phillips had access to ICG’s financial software, could prepare checks on behalf of ICG and was responsible for cashing and mailing checks to ICG’s customers.  Phillips began the scheme to defraud ICG in March 2012, following a conversation with her good friend, Willis.

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

LUBBOCK, Texas— Glenn Wayne Baker, 60, formerly of Taylor County, Texas, appeared this morning in federal court, before U.S. District Judge Sam R. Cummings, and pleaded guilty to an indictment charging failure to register and update registration as a sex offender.  He faces a maximum statutory penalty of 10 years in federal prison and a $250,000 fine.  Judge Cummings ordered a presentence investigation report with a sentencing date to be set after the completion of that report.  Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

According to documents filed in the case, in August 1981, Baker was convicted by a jury of the felony offense of aggravated rape, in the District Court of Taylor County, Texas.  Based on this conviction, he was a sex offender under the Sex Offender Registration and Notification Act (SORNA), and was required to register as a sex offender for life under state and federal law.  On January 11, 2013, Baker registered as a sex offender, listing his address in Tye, Taylor County, Texas, and acknowledging his duty to register as a sex offender for life. 

Beginning in January 2013, Baker lived with his sister in Tye after being paroled on his Texas aggravated rape conviction, and was registered as a sex offender while living there.  On July 29, 2013, Baker cut off his electronic monitor and left his residence in Tye, and he did not provide any notice, before or after he left, to any authorities.  He then traveled to Enid, Oklahoma, and moved in with his wife, who he had married several years earlier while he was in prison.  He told her that he had been given permission by Texas authorities to move to Oklahoma.  Baker lived in Enid, Oklahoma, from approximately August 1, 2013, until he was arrested in mid-August 2013. 

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 investigation was conducted by the U.S. Marshals Service.  Assistant U.S. Attorney Steven M. Sucsy is in charge of the prosecution.

Defendant Remanded into Federal Custody Following Verdict

FORT WORTH, Texas — Following a two-day trial, before U.S. District Judge John McBryde, a federal jury convicted Caleb Deason, a 34 year old Fort Worth resident, late yesterday on an indictment charging one count each of wire fraud and money laundering.  Following the verdict, Judge McBryde remanded Deason into custody.  Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

The government presented evidence at trial that Deason owned and operated CD Financial, a financial services business in Fort Worth, Texas.  Deason was an agent of Transamerica Life Insurance Company from November 206 through May 2012.  In October 2011, Deason sold an individual a Transamerica policy with a death benefit of approximately $1 million.

In January 2012, the insured died unexpectedly.  Transamerica conducted extensive due diligence before agreeing to pay the policy’s death benefit to the insured’s wife.  However, Deason fraudulently changed the bank account and routing information and forged the beneficiary’s signature on a Transamerica wire request form in order to divert the proceeds from the life insurance policy to his own personal use, which included purchasing a 2010 Range Rover.

Deason faces a maximum statutory penalty of 20 years in federal prison on the wire fraud conviction and 10 years on the money laundering conviction.  Each count of conviction also carries a fine of up to $250,000.  The 2010 Range Rover has already been administratively forfeited by the U.S. Secret Service.  Sentencing has been set for April 4, 2014.

The case was investigated by the U.S. Secret Service and the Texas Department of Insurance.  Assistant U.S. Attorneys Brian Poe and John de la Garza were in charge of the prosecution.

Defendant Also Convicted on Obstruction and Perjury Charges

DALLAS — A Dallas man arrested this summer as part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation was convicted late yesterday, following a three-day trial before U.S. District Judge Reed C. O’Connor, announced U.S. Attorney Sarah R. Saldana. 

The jury found Reynaldo Macedo-Flores, 35, guilty as charged on all five counts of the indictment, including one count of conspiracy to possess with intent to distribute cocaine; one count of conspiracy to possess with intent to distribute methamphetamine, one count of obstruction of justice and two counts of perjury.  The obstruction and perjury convictions stem from Macedo-Flores’s false testimony at the trial of Austreberta Macedo-Flores, his mother, in September 2013, also before U.S. District Judge Reed O’Connor.  (Austreberta Macedo-Flores was also convicted of conspiring to distribute methamphetamine; her sentencing hearing is pending.) 

The government presented evidence at trial that Reynald Macedo-Flores repeatedly sold narcotics to an undercover officer, bragged about taking the risk of distributing narcotics on a wiretap, and plotted to present false testimony – and then did so – at his mother’s trial.  

Macedo-Flores faces a statutory penalty of five to 40 years in federal prison on the cocaine conviction, 10 years to life in prison on the methamphetamine conviction, up to 20 years in prison on the obstruction conviction and up to five years in prison on each of the perjury convictions.  He could also be ordered to pay millions of dollars in fines. Sentencing is set for March 20, 2014, before Judge O’Connor.

All 10 defendants in the case have now been convicted and are awaiting sentencing.  Eight defendants entered guilty pleas.

The case involved undercover purchases, wiretaps and search warrants, and was investigated by the FBI in conjunction with the Dallas Police Department.  In total, over 15 kilograms of cocaine, four and one-half pounds of methamphetamine (ICE), five firearms, four luxury vehicles and $351,010 in cash – much of it, as trial testimony showed, packaged for shipment to Mexico – have been seized in the operation. 

The case is being prosecuted by Assistant U.S. Attorney Jason Schall. 

WICHITA FALLS, Texas —Louis Griego, Jr., aka “Big Lou,” 44, of Wichita Falls, Texas, was sentenced on Monday, by U.S. District Judge Reed C. O’Connor, to 168 months (14 years) in federal prison following his guilty plea in July 2013 to an indictment charging conspiracy to possess with intent to distribute and to distribute methamphetamine, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

A total of seven defendants have pleaded guilty in the case.  In August, Judge O'Connor sentenced Anthony Rueben Johnston, 28, to 480 months (40 years) in federal prison; Rachel Dawn Billen, 20, to 36 months and Christina Gail Thompson, 32, to 42 months in federal prison.  Each of the defendants pleaded guilty earlier this year to one count of conspiracy to possess with intent to distribute methamphetamine.

Three other defendants charged in the case, Janis Hernandez, James Allan Holley and Darren Scott Murphy, Jr., also pleaded guilty, and their sentencing dates are scheduled during the next few months.

According to documents filed in Griego’s case, Griego admitted that during the month of February 2013, he distributed quantities of methamphetamine to and received payments for methamphetamine from customers in the Wichita Falls area.  Co-conspirator Anthony Rueben Johnston supplied the methamphetamine that Griego distributed.

The Texas Department of Public Safety, the Wichita Falls Police Department, the Wichita County District Attorney’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. 

Assistant U.S. Attorney Mary F. Walters is in charge of the prosecution.  

WICHITA FALLS, Texas— Three defendants, who pleaded guilty in late August 2013 to their respective roles in a major methamphetamine distribution conspiracy operating in Wichita Falls, Texas, were sentenced on Monday by U.S. District Judge Reed C. O’Connor, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

Chance Terrell Dotson, 35, was sentenced to 235 months in federal prison; Heather Michelle Douglas, 33, was sentenced to 180 months; and Paula Aimee Vazquez, 40, was sentenced to 84 months. 

According to documents filed in the cases, Dotson admitted that on numerous occasions from October 2010 to June 2012, he purchased pseudoephedrine tablets to use in manufacturing methamphetamine from numerous Walmart stores in the Houston area.  He further admitted that he purchased pseudoephedrine from as many as 17 different Walmart stores in a single day and arranged to sell the pseudoephedrine to co-defendant Steve Ysasaga and others.  Sometimes Ysasaga drove to Houston to obtain the pseudoephedrine from Dotson; other times Dotson transported the tablets to Wichita Falls.  Dotson admitted purchasing 286 boxes of pseudoephedrine during the course of the conspiracy.

Douglas and Vazquez admitted that on multiple occasions between November 2011 and August 2012, they distributed quantities of methamphetamine to customers in the Wichita Falls area.  Co-conspirators supplied them with the methamphetamine.  Douglas also admitted she facilitated the manufacture of methamphetamine by purchasing pseudoephedrine tablets from various individuals.  In turn, Douglas sold those tablets knowing they would be used to manufacture methamphetamine.  Douglas and Vazquez also helped facilitate the May 13, 2012, beating of an individual in retaliation for that individual’s suspected theft of money and drugs.

To date, 38 of the 39 defendants charged in this conspiracy have entered guilty pleas; a total of 32 defendants have been sentenced.  The case against one defendant has not been resolved.

Paragraph Seven.

This Organized Crime and Drug Enforcement Task Force (OCDETF) case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; Texas DPS; and the Wichita Falls Police Department.  Assistant U.S. Attorney Mary F. Walters is in charge of the prosecution.

DALLAS — Travis Olt, 40, of Irving, Texas, was sentenced this afternoon by U.S. District Judge Sam A. Lindsay to 150 months in federal prison, following his guilty plea in August 2013 to an Information charging one count of transporting and shipping child pornography.  Judge Lindsay remanded Olt, who had been on bond, into custody.  Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

According to documents filed in the case, in May 2013, federal agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) executed a federal search warrant at Olt’s residence and seized several computers and computer-related items.  Olt admitted that he intentionally and knowingly received child pornography using a file-sharing computer software program.

Prior to the execution of the warrant, law enforcement was able to access and download child pornography that Olt received by using the software.  Olt admitted that he believed he possessed approximately 1,000 videos 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 investigation was conducted by ICE HSI and the Plano, Texas Police Department.  Assistant U.S. Attorney Lisa J. Miller prosecuted.

LUBBOCK, Texas — Gabriel Tenorio, 30, the getaway driver in the May 1, 2013, armed robbery of a Lubbock National Bank, was sentenced on Friday by U.S. District Judge Sam R. Cummings to 140 months in in federal prison.  A resident of Lubbock, Tenorio has been in custody since his arrest in early June 2013.  He pleaded guilty in August 2013 to one count of aggravated bank robbery and aiding and abetting as charged in a superseding indictment  Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

Tenorio’s co-defendant, Russell Eugene Heath, 44, also of Lubbock, was arrested in August in Calexico, California.  He pleaded guilty last month to one count of aggravated bank robbery and aiding and abetting and one count of possession of a firearm in furtherance of a crime of violence and aiding and abetting.  He faces a maximum statutory penalty of 25 years in federal prison on the robbery conviction and at least five years and up to life on the firearm offense.  Each count of conviction also each carries a maximum statutory fine of $250,000.  A sentencing date has not yet been set for Heath.

According to Tenorio’s factual resume, he and Heath planned and executed the robbery of the Lubbock National Bank located at 4420 19th Street in Lubbock.  At approximately 12:45 p.m., Heath, wearing a mask and gloves and carrying what appeared to be a Glock firearm, entered the bank, pointed the firearm at the tellers and began yelling at them to give him money.  He jumped over a counter, opened a teller drawer and began stuffing money in his pockets.  He then ran from the bank to a waiting vehicle driven by Tenorio.  Tenorio and Heath split the proceeds of the robbery.

According to the factual resume filed in Heath’s case, he and Tenoria also robbed the FirstBank Southwest Bank, located at 5701 SW 34th Street in Amarillo, Texas, on May 20, 2013.  In that robbery, Heath entered the bank carrying a short-barreled shotgun, vaulted over the teller counter and stole money.  Heath then ran to the vehicle being driven by Tenoria and they fled the area.

The investigation was conducted by the FBI, the Lubbock Police Department, the Amarillo Police Department and the Lubbock County Sheriff’s Office.  Deputy Criminal Chief Assistant U.S. Attorney Denise Williams is in charge of the prosecution.

Defendant Believed He Was Sending Video to a 15-Year-Old Girl

LUBBOCK, Texas — Paul Harvilicz, 62, of Copperas Cove, Texas, was sentenced on Friday, by U.S. District Judge Sam R. Cummings, to six years in federal prison following his guilty plea in August 2013 to a superseding indictment charging one count of attempted transfer of obscene material to a minor.  Harvilicz has been in custody since he was arrested in Waco, Texas, on March 27, 2013, on related charges.  U.S. Attorney Sarah R. Saldaña, of the Northern District of Texas, announced today.

According to the factual resume filed in the case, from May 29, 2011, through mid-October 2011, while living in Big Spring, Texas, Harvilicz engaged in a series of communications using Yahoo! messaging and email with a person he believed to be a 15-year-old girl, who represented that she lived in Kentucky.  In fact, Harvilicz was actually communicating with a law enforcement officer in Kentucky.  On June 28, 2011, Harvilicz emailed this person an obscene video file, depicting an adult male and female engaged in sexually explicit conduct.

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

The investigation was conducted by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Kenton County Police Department, Kenton County, Kentucky.  Assistant U.S. Attorney Steven M. Sucsy prosecuted.

DALLAS — Jennifer Tyson, 37, of Rockwall, Texas, the former Executive Director/Manager of the Rockwall Housing Development Corporation (RHDC), appeared yesterday before U.S. Magistrate Judge Renée Harris Toliver and admitted conspiring to steal federal funds from the U.S. Department of Housing and Urban Development (HUD), announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

Specifically, Tyson pleaded guilty to an Information charging one count of conspiracy to commit theft concerning programs receiving federal funds.  She faces a maximum statutory penalty of five years in federal prison, a $250,000 fine, or twice the pecuniary gain to Tyson or loss to the victim(s), and restitution.  Sentencing is set for March 19, 2014, before U.S. District Judge Ed Kinkeade.

The RDHC is a landlord to several authorized public housing agencies (PHAs) in Rockwall.  These PHAs, and, in turn, the RHDC, receive federal funds from HUD through the “Housing Choice Voucher Program.”  The RHDC owns and operates a 36-unit apartment complex in Rockwall, known as “the Meadows.” 

In her role as the RHDC’s Executive Director/Manager from June 2009 to November 2012, Tyson was an agent of the RHDC.  Her responsibilities included, among other things, reviewing and processing monthly housing assistance payments and had managerial discretion and responsibility for the day-to-day running of the Meadows. 

According to the factual resume filed in the case, beginning in March 2010 and continuing until June 2011, Tyson wrote approximately 128 RHDC checks, made out to Co-conspirator B, totaling approximately $126,063.  While this co-conspirator did perform some work for the Meadows, such as watering plants and picking up trash, Co-conspirator B did not earn, and was not owed, $126,063 over the course of less than 16 months.

Generally, Co-conspirator B cashed the checks that Tyson gave to him.  Then, Tyson, along with this Co-conspirator B and his fiancé, Co-conspirator A, used the cash to purchase illegal narcotics for their own personal use.

From February 2011 until January 2012, Tyson wrote approximately 94 RHDC checks made out to “cash” and used the proceeds for her own personal use.

From October 2009 until October 2012, Tyson wrote approximately 55 RHDC checks made out to “reimbursement” and used the proceeds for her own personal use.

In January 2011, Co-conspirator A was evicted from the Meadows and began living with Co-conspirator B in hotels in Rockwall.  Tyson would occasionally visit them and the three would often use illegal narcotics in these hotel rooms.  Tyson paid for these hotel stays using RHDC funds.

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

LUBBOCK, Texas — Gary Edward Larock, Jr., 35, most recently a resident of Eden, Texas, was sentenced today by U.S. District Judge Sam R. Cummings, to 37 months in federal prison for failing to register as a sex offender, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

Larock has been in custody since his arrest in June 2013 on a related criminal complaint.  He pleaded guilty in August 2013 to an indictment charging one count of failure to register as a sex offender.

In August 2005, Larock was convicted in New York of third-degree rape, a felony.  He was notified that based on that conviction, he was required to register as a sex offender under the Sex Offender Registration and Notification Act.  Larock left New York and traveled to California, where, in December 2012, he was arrested by the San Joaquin County Sheriff’s Office on an outstanding warrant from New York for failing to comply with sex offender registration requirements in that state.  He was released from jail in California in early February 2013 and traveled to Eden, Texas, where he gained employment.  Larock failed to register as a sex offender while living and working in Eden, Texas.

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 investigation was conducted by the U.S. Marshals Service, the Concho County Sheriff’s Office and the Texas Department of Public Safety.  Assistant U.S. Attorney Steven M. Sucsy prosecuted.

LUBBOCK, Texas — Jacob Aniceto Jose Villarreal, 29, of Brownwood, Texas, was sentenced today by U.S. District Judge Sam R. Cummings to 50 years in federal prison and a lifetime of supervised release, following his guilty plea in August 2013 to one count of production of child pornography and one count of receipt of child pornography.  Villarreal has been in custody since his arrest in June 2013 on a related federal criminal complaint.  Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

On June 25, 2013, agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) executed a federal search warrant at Villarreal’s home and five computers, two telephones and three thumb drives were found.

According to documents filed in the case, Villarreal used his cell phone to create a video of a minor male engaged in sexually explicit conduct.  In addition, Villarreal admitted that he collected and traded images and videos of child pornography.  Some of the child pornography was collected using peer-to-peer file-sharing software, but most of the images and videos depicting minors engaged in sexually explicit conduct were received and sent by way of his cell phone.

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 investigation was conducted by ICE HSI, the U.S. Marshals Service and the Brown County Sheriff’s Office.  Assistant U.S. Attorney Steven M. Sucsy prosecuted.

LUBBOCK, Texas — Jacob Alan Powell, 28, of Abilene, Texas, was sentenced this morning, by U.S. District Judge Sam R. Cummings, to 188 months in federal prison for committing the July 8, 2013, aggravated bank robbery of a Citibank location in Abilene.  The announcement was made today by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

According to documents filed in the case, on July 8, 2013, Powell, wearing business attire and a Hardin-Simmons University baseball cap, entered the Citibank, N.A., located at 3409 South 14th Street in Abilene.  He waited several minutes before an available teller asked him to her station.  Once at the teller counter, he told the teller that he was making a withdrawal.  When the teller asked him for his account number, he told her that she didn’t understand and then lifted his suit jacket to show her a gun in his waistband.  Fearing for her life as the gun appeared real, the teller opened her cash drawer and put cash in a bag that Powell provided; Powell then quickly left the bank. 

The following day, bank surveillance photos were shown on the local news and Powell was identified by witnesses.

The investigation was conducted by the FBI and the Abilene Police Department.  Deputy Criminal Chief Assistant U.S. Attorney Denise Williams prosecuted.

DALLAS — Evan Richards, 22, of Garland, Texas, was sentenced this morning by U.S. District Judge Barbara M. G. Lynn to 120 months in federal prison, after pleading guilty earlier this year to an Information charging one count of transporting and shipping child pornography.  Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

According to documents filed in the case, a detective with the Garland Police Department, working online in an undercover capacity, identified a computer using a peer-to-peer program and the Internet to share images of child pornography.  The investigation revealed that the computer belonged to Richards.  A search warrant was executed at Richards’ residence on September 18, 2012, and law enforcement seized his computer.  Richards admitted that he downloaded images and videos that he made available for sharing and that he believed there were approximately 2000 child pornography files on his computer.  He admitted downloading child pornography for three to four years using file-sharing software.  

Richards has been in custody since he entered his guilty plea in January 2013.

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 investigation was conducted by the Garland Police Department and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).  Assistant U.S. Attorney Camille Sparks prosecuted.

DALLAS — Today, Louis Michael Olerio, Jr., 36, of Dallas, was sentenced to 24 months in federal prison, following his guilty plea in October 2012 to conspiracy to commit money laundering, stemming from his role in a hydroponic marijuana growing operation.  Five other defendants charged in the case also pleaded guilty to various felony offenses and received sentences of 18 months to 36 months, as noted below.  Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

The other five defendants convicted and their sentences are:

Brian Edward Deloney, 37, 18 months

Jeremy Cash McElroy, 37, 36 months

Eric Irving Love, 35, 30 months

Jeffrey Scott Gannon, 34, 27 months

Stephen Ray Willeford, Jr., 39, 24 months

McElroy also pleaded guilty to conspiracy to commit money laundering.  Love and Gannon pleaded guilty to conspiracy to maintain drug involved premises and Deloney pleaded guilty to maintaining a drug involved premise.

According to documents filed in the case, McElroy, Olerio, Gannon, and Love were fraternity brothers at Southern Methodist University (SMU) in the past.  Between 2004 and June 2010, the defendants conspired to maintain 11 houses, in Dallas and Richardson, Texas, to cultivate and distribute highly potent hydroponic marijuana.  Almost all of the marijuana grown at these houses by the defendants was ultimately delivered to Deloney for distribution.

After having grown marijuana with Olerio at one of the houses for numerous cycles, McElroy decided to distance himself from the day-to-day operations of the conspiracy and agreed to sell two of the marijuana grow houses to Olerio, while retaining a percentage of the proceeds in the sale of marijuana grown in those houses.  To that end, McElroy transferred the deed for one of the houses to Olerio and sold another one of the grow houses to Olerio, leaving the marijuana grow equipment in both houses so that Olerio could continue to growing operation in them.  Olerio agreed to continue the operation in these houses and pay McElroy twenty percent of the profits from the sale of the marijuana.  McElroy and Olerio conducted financial transactions with the intent to conceal any ownership McElroy had in the profits from the marijuana sales.

The case was investigated by the Internal Revenue Service - Criminal Investigations and the Drug Enforcement Administration.  Deputy Criminal Chief Assistant U.S. Attorney Jay Dewald was in charge of the prosecution.

AMARILLO, Texas — The U.S. Department of the Interior, Fish and Wildlife Service (USFWS), the U.S. Attorney for the Northern District of Texas, Phillips 66 Company and WRB Refining LP, entered into an Agreement and Compliance Plan on November 22, 2013, regarding facilities located near Borger, Texas, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

Phillips 66 and WRB Refining (Borger) own and/or operate a refinery and related support facilities, including the Johnson Tank Farm Pond in Hutchison County Texas, a three million barrel brine water pond spanning 22 acres.

In August 2012, the USFWS learned of a large migratory bird kill at the Johnson Tank Farm Pond.  Approximately 260 waterfowl, mostly teal, were recovered.  Borger self-reported the kill and immediately began implementing additional hazing efforts to attempt to keep migratory birds off of the pond.  Additionally, Borger established an emergency treatment center to triage injured birds at the Borger facility.

Borger also installed additional bird deterrents and contracted for bird-hazing personnel to deter migratory birds off the Johnson Tank Farm Pond, during daylight hours, using a boat and air horns, provided the weather conditions and personal safety conditions permit the hazing activities.

According to the Agreement, within 30 days,

Borger agrees to pay a $50,000 violations notice;

Borger agrees to pay $10,000 in restitution to the South Plains Wildlife Rehabilitation Center;

Borger agrees to pay $38,820 to the Texas Parks and Wildlife Department for the value of the deceased migratory birds;

Borger agrees to make a $200,000 charitable contribution to the South Plains Wildlife Rehabilitation Center; and

The USFWS will not seek prosecution under the Migratory Bird Treaty Act, or other similar offenses related to Migratory Bird Activity at the Borger facilities, as long as Borger continues to comply with this Agreement and the Compliance Plan contained in this Agreement.

The Compliance Plan requires, among other things, for Borger to deploy the Merlin Detect and Deter Bird-Control Radar System™ at the Pond at the Johnson Tank Farm, to take actions with respect to the 302 Hazardous Waste Impoundment and to submit semi-annual reports to the USFWS in Lubbock.  Borger also agrees to train personnel and contractors who work near Surface Waters at Borger Facilities to observe and report any Migratory Bird Activity at Surface Waters other than fresh or raw water and to maintain an on-site bird treatment center to triage injured birds.

The case was handled by Assistant U.S. Attorney Christy Drake of the U.S. Attorney’s Office in Amarillo, Texas.

LUBBOCK, Texas — Nicholas Lee Blair, 31, appeared yesterday afternoon before U.S. District Judge Sam R. Cumming and pleaded guilty to an indictment charging one count of production of child pornography.  Blair, who is in custody, faces a statutory penalty of not less than 15 years or more than 30 years in federal prison, up to a $250,000 fine and up to a lifetime of supervised release.  Judge Cummings ordered a presentence investigation report with a sentencing date to be set after the completion of that report.  The announcement was made today by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

According to the factual resume filed in the case, on or about December 25, 2012, when he resided in Lubbock, Texas, Blair persuaded a minor female, “Jane Doe,” to engage in sexually explicit conduct while he used his cellphone camera, aimed at her while she was in the bathroom of his home, to record a video of her.

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 investigation is being conducted by the Lubbock Police Department and the FBI.  Assistant U.S. Attorney Steven M. Sucsy is in charge of the prosecution.

DALLAS — Ulises Sandoval, 26, of Dallas, appeared this morning before U.S. District Judge Ed Kinkeade and pleaded guilty to one count of production of child pornography and one count of possession of prepubescent child pornography.  Sandoval, who is in custody, faces a statutory sentence of not less than 15 or more than 30 years in federal prison on the production count and a statutory maximum of 20 years in federal prison on the possession count.  In addition, each count carries a maximum statutory fine of $250,000 and up to a lifetime of supervised release.  Sentencing is set for March 5, 2014, before Judge Kinkeade.  The announcement was made today by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

According to the factual resume filed in the case, special agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) received information that a person, later identified as Sandoval, was trading images of child pornography over email. They executed a search warrant at his home on September 25, 2013, and arrested him.

Sandoval admitted using his email address to join a website for the purpose of trading images and videos of child pornography, and he also admitted using email to meet individuals with a similar interest in child pornography to trade child pornography with them.  He admitted taking photographs of “Jane Doe,” who was less than seven years old at the time, while he engaged in sexually explicit conduct with her, and then sharing those images with others.

Forensic analysis located images of child pornography on Sandoval’s laptop computer.  Sandoval admitted that he had more than 2500 child pornography images and videos on his hard drive and some of those depicted sadistic and or violent conduct; 21 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.”      

The investigation is being conducted by ICE HSI.  Assistant U.S. Attorney Camille Sparks is in charge of the prosecution.

ABILENE, Texas — Matthew Castaneda, 23, of Big Spring, Texas, was arrested yesterday on a federal indictment, returned by a grand jury last week and unsealed today, charging him with one count of bribery of public officials.  Castaneda made his initial appearance in federal court today before U.S. Magistrate Judge E. Scott Frost, and entered a not guilty plea to the charge.  He was released on his own recognizance.  Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

The indictment alleges that from September 14, 2013, to approximately December 13, 2012, Castaneda, who at the time was employed as a Correctional Officer at the Big Spring Correctional Center, brought contraband to an inmate, in the form of cell phones, in exchange for money from that inmate.

An indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty.  If convicted, however, Castaneda faces a  maximum statutory penalty of 15 years in federal prison and a $250,000 fine.

The investigation was conducted by the Department of Justice Office of the Inspector General.  Assistant U.S. Attorney Paulina Jacobo is in charge of the prosecution.

DALLAS— Erik Willis, 31 of Purdon, Texas, was sentenced this afternoon by U.S. District Judge Jorge A. Solis to serve a total of 258 months in federal prison following his conviction at trial in July 2013 on three felony firearms offenses, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

Specifically,Willis, who represented himself at trial, was convicted on two counts of being a felon in possession of a firearm and one count of possessing an unregistered firearm.  Judge Solis sentenced him to 120 months on each count of conviction, for a total of 360 months, but two of the three sentences will run concurrently.  In addition, when Willis was convicted, he was on federal supervised release, so he received an additional 18-month sentence for this violation.

At trial, the government presented evidence that on April 27, 2011, Willis, who had been previously convicted in 2005 of possession with intent to distribute more than 100 kilograms of marijuana, fled after choking a Garrett Police officer during a traffic stop.  A subsequent search of his truck yielded two guns and marijuana. 

Then, on May 6, 2011, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Texas Rangers and the Navarro County Sherriff’s Office searched Willis’s property in Purdon after receiving information he had stockpiled weapons and drugs.  During the search, officers located three and a half pounds of marijuana, $150,000 in cash and 13 firearms, including a “street sweeper” destructive device.  Willis’s house was heavily fortified, containing a hidden room, steel curtains, money counters, industrial door locks and surveillance equipment. 

The case was investigated by ATF, the Texas Rangers, the Navarro County Sheriff’s Office and the Garrett Police Department.  Assistant U.S. Attorneys Cara Foos Pierce and Taly Haffar prosecuted.

FBI Says Luis de la Garza was the “Mesh Mask Bandit”

DALLAS — Luis de la Garza, 59, of Farmers Branch, Texas, appeared this morning before U.S. Magistrate Judge Irma C. Ramirez and pleaded guilty to a superseding information charging five counts of bank robbery, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

According to plea papers filed, de la Garza not only admits committing the five below-listed bank robberies, he stipulates that he committed an additional 13 bank robberies and an additional two attempted bank robberies in the Dallas – Fort Worth metroplex between April 2010 and May 2013.

March 18, 2013          Chase Bank                             6300 Harry Hines Blvd.
                                                                                                Dallas, Texas
April 5, 2013              Grand Prairie State Bank       2317 South Belt Line Rd.
                                                                                                Grand Prairie, Texas
April 22, 2013            Wells Fargo Bank                   13297 Josey Lane
                                                                                                Farmers Branch, Texas
April 29, 2013            Capital One Bank                   200 North Mesquite Street, Suite 121
                                                                                                Arlington, Texas
May 15, 2013              Chase Bank                             111 South Garland Ave., Suite 150
                                                                                                Garland, Texas

In each of these five bank robberies, de la Garza wore long-sleeved clothing, a mesh mask, cap and gloves to disguise his identity, and in each robbery he brandished and used a BB pistol.  In each of the robberies, the tellers were in fear for their lives.  During the last robbery, on May 15, 2013, a bank customer grabbed de la Garza’s pistol and struck him in the head.  While a struggle then ensued between de la Garza and a bank employee, de la Garza broke free and fled from the bank, leaving behind his pistol, which Garland Police Department determined was a CO2 BB gun.

De la Garza faces a maximum statutory penalty of 25 years in federal prison and a $250,000 fine for each of the five counts of conviction.  In addition, according to the terms of his plea, he will pay a total of $145,947 in restitution.  Sentencing is set for February 27, 2014, before U.S. District Judge Jane J. Boyle.

The investigation was conducted by the FBI, Dallas Police Department, Grand Prairie Police Department, Farmers Branch Police Department, Arlington Police Department, Garland Police Department, Carrollton Police Department, Addison Police Department, Lewisville Police Department and Plano Police Department.  Assistant U.S. Attorney Keith Robinson is in charge of the prosecution.

DALLAS — On the day his trial was to begin in federal court in Dallas, Brian Marshall, 49, of Tampa, Fla., pleaded guilty to one count of securities and commodities fraud, stemming from his scheme to defraud investors in connection with the sale of Home Solutions of America, Inc. stock, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. 

 Marshall was a vice-president and a member of the board of Home Solutions of America, Inc., a NASDAQ-traded company that was based in Dallas before it relocated to New Orleans, La. in July 2008.  Home Solutions was in the business of construction and restoration, including new construction and restoration following natural disasters such as hurricanes.  Home Solutions conducted some of its business through its largest subsidiary, Fireline Restoration, Inc., which was based in Tampa.  Marshall was the president of Fireline.  Frank J. Fradella of Covington, Louisiana, who was the CEO of Home Solutions, pleaded guilty to securities fraud in the Eastern District of Louisiana, and is awaiting sentencing.

In plea documents filed last week, Marshall admitted that between December 2006 and August 15, 2007, he ran a scheme to defraud public investors by fabricating false and fictitious revenue, operating income and costs in connection with a series of construction contracts in Tampa.  Marshall caused Fireline to enter into construction contracts with private companies that he wholly or partially owned, including a $4 million contract for the construction of his ersonal residence. 

Marshall admitted that he also caused Fireline to record revenue and income from the construction contracts that were false, because little, if any, work had actually been performed.  Even though Marshall knew that the revenue, costs and income on the construction projects were false, he caused Home Solutions to report it to public investors in Home Solutions’ 2Q 2007 10-Q. 

According to the plea agreement filed, if the Court accepts the plea, the parties agree that a sentence of no more than 60 months is the appropriate custody disposition of Marshall’s case.  A sentencing date was not set.

Today’s conviction is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorney’s 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. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,900 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.

The investigation was conducted by the FBI and the FDIC Office of Inspector General, with substantial assistance from the Enforcement Division staff of the Securities and Exchange Commission.  Assistant U.S. Attorneys J. Nicholas Bunch and Andrew Wirmani are in charge of the prosecution.

Drug Trafficking Organization Based in Stephenville, Texas, is
Allegedly Responsible for Distributing Hundreds of Pounds of Methamphetamine
Primarily in Rural Texas Counties

FORT WORTH, Texas — A total of 31individuals are now in custody following an Organized Crime Drug Enforcement Task Force (OCDETF) operation yesterday, led by special agents of the Drug Enforcement Administration (DEA) and officers from the Stephenville Police Department, on conspiracy and drug trafficking charges outlined in a criminal complaint filed last week and unsealed today.  Defendants arrested yesterday made their initial appearance this morning before a U.S. Magistrate Judge.  Today’s announcement was made by Sarah R. Saldaña, U.S. Attorney for the Northern District of Texas, and Daniel R. Salter, Special Agent in Charge of the DEA in Dallas.

The complaint charges 32 defendants with conspiracy to possess a controlled substance (methamphetamine) with intent to distribute.  Twenty of those defendants were arrested in yesterday’s operation, 11 are in custody at various locations on unrelated state charges, and one has not yet been arrested.

“These arrests illustrate the success of our District’s federal, state and local law enforcement partners’ collaboration in taking down these drug trafficking organizations — whether they operate in large communities, or in several rural counties as this one allegedly did,” said U.S. Attorney Saldaña.  “I commend the dedicated efforts of the DEA and the Stephenville Police Department, who led this OCDETF investigation, along with the Erath, Parker, Palo Pinto and Stephens County Sheriff’s Offices, the Erath County District Attorney’s Office, the Fort Worth and Weatherford Police Departments, the U.S. Marshals Service and the Texas Department of Public Safety.”

 “Drug trafficking organizations are determined to spread their poison in an attempt to make a profit on the backs of addiction,” said Special Agent in Charge Salter.  “Today, the DEA and our state and local partners have made a significant impact on these organizations operating in our rural counties.  I am grateful for the efforts of our special agents, prosecutors, and law enforcement partners in dismantling this organization.  Our law enforcement community is strong and together we are committed to ensuring that our communities are safe and drug free.”

The investigation began in December 2012 when the DEA and the Stephenville Police Department began investigating the methamphetamine trafficking of the Brittany Barron Drug Trafficking Organization (DTO) and identified more than 100 individuals distributing for, or obtaining methamphetamine from, that DTO. 

The investigation involved undercover purchases and search warrants, and throughout the investigation, substantial amounts of methamphetamine and cash were seized from the DTO.  Law enforcement learned that this DTO, based in Stephenville, Texas, was allegedly responsible for distributing hundreds of pounds of methamphetamine, primarily in rural Texas counties, including:  Erath County, Parker County, Palo Pinto County, Comanche County, Eastland County, Stephens County, Hood County, Hamilton County, Somervell County and Taylor County. 

In addition, law enforcement has dismantled several of the DTO’s suppliers, and it continues to investigate others that remain in operation.

A federal criminal complaint is a written statement of the essential facts of the offense charged and must be made under oath before a magistrate judge.  A defendant is entitled to the presumption of innocence until proven guilty.  The statutory penalty, upon conviction, for the offense charged is not less than five years or more than 40 years in prison and a $5 million fine. The U.S. Attorney’s Office has 30 days to present the matter to a grand jury for indictment. 

The case is being prosecuted by Assistant U.S. Attorney Shawn Smith.

DALLAS — A detective who worked in the Dallas Police Department’s (DPD) Vice Unit, Jose Luis Bedoy, 39, of Dallas, was arrested this morning, by special agents with the FBI, on federal felony charges of obstruction of official proceedings and obstruction of the due administration of justice, as outlined in an indictment that was returned earlier this week by a federal grand jury in Dallas and was just unsealed.  Bedoy made his initial appearance before U.S. Magistrate Judge David L. Horan this afternoon and was released on conditions.  Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

Specifically, the indictment charges Bedoy with three counts of obstruction of an official proceeding and one count of obstruction of due administration of justice.

According to the indictment, from November 28, 2007 through July 2013, Bedoy was assigned to the DPD’s Vice Unit.  In early 2009, after a DPD Vice raid on an adult entertainment establishment, Bedoy met a female prostitute who worked at the establishment.  Later, when she tried to reclaim property DPD seized during the raid, Bedoy assisted her.

Bedoy later contacted her and expressed an interest in seeing her and wanting a massage from her.  They began communicating on a weekly basis, and Bedoy began giving her advice on the adult entertainment establishments at which she could work.  Bedoy later met her for a massage, and during the massage, he explained how to screen her clients to avoid being arrested.  Bedoy and the female began an intimate relationship.

From 2008 until 2013, while they were engaged in a sexual relationship, Bedoy provided law enforcement-sensitive information to her about DPD Vice Unit prostitution raids and other enforcement actions.  In January 2013, Bedoy met her at her residence and showed her a DPD investigative case file targeting “Wet,” an adult entertainment establishment, which he had brought with him.  Two days later, Wet was raided, and after the raid, Bedoy arranged to meet her at her residence.

In early 2013, according to the indictment, the Coppell Police Department began an investigation of “Studio Serene,” an adult entertainment establishment, and enlisted the help of the DPD Vice Unit in its investigation.  In March 2013, Bedoy advised the female that Studio Serene was being targeted and advised her against working there.  Bedoy told her that the information was only for her benefit, but she relayed the information to Studio Serene’s owner.  Based on that information, Studio Serene closed for a number of days.

After it reopened, on April 25, 2013, the Coppell Police Department and the DPD Vice Unit raided Studio Serene.  While law enforcement conducted interviews of individuals working at Studio Serene, members of the Coppell Police Department were informed that a DPD Vice Unit detective, named “Jose,” had “tipped off” the business weeks earlier about the pending raid.  The phone number provided for “Jose” matched Bedoy’s contact information on his DPD personnel file.  Based on the information received by the Coppell Police Department, an FBI and federal grand jury investigation of Bedoy were initiated.

According to the indictment, on multiple occasions in June 2013, Bedoy instructed the female on how to avoid being arrested while using Backpage.com for prostitution.  He advised her to not only change her phone number every two weeks, but also advised her of the best days and times to work and the best days and times to avoid.  On June 25, 2013, Bedoy contacted her to ensure that she wasn’t working Backpage.com during that week because DPD Vice was “working Backpage” that week.  In fact, that same day, DPD Vice Unit and the FBI conducted a joint operation that was designed to deter prostitution by directing enforcement efforts at Internet-based prostitution.  Bedoy was listed on the DPD Vice Unit roster of operation participants.  On July 11, 2013, the FBI advised Bedoy and other DPD Vice Unit detectives that a federal grand jury investigation had been initiated and that the FBI was attempting to locate this female, as well as another woman, based on information that they were receiving law enforcement-sensitive information from a police officer.

The indictment alleges that on:

July 8, 2013, Bedoy told the female, a witness in the investigation, to leave Dallas and move somewhere else and to never give her real name if pulled over in a traffic stop by law enforcement.

July 11, 2013, Bedoy instructed the female to not let anyone into her apartment to talk to her, including FBI agents.

July 14, 2013, Bedoy told the female to get rid of her cell phone so that there would not be a connection between them.

July 23, 2013, Bedoy falsely told FBI agents that he never gave sensitive law enforcement information to this female.

An indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty.  If convicted, however, each count of obstruction of an official proceeding carries a maximum statutory penalty of 20 years in federal prison and the obstruction of due administration of justice count carries a maximum statutory penalty of 10 years in federal prison.  Each count of conviction also carries a maximum statutory fine of $250,000.

The investigation is being conducted by the FBI and the DPD’s Public Integrity Unit.  Assistant U.S. Attorneys Errin Martin and Mindy Sauter are prosecuting.

(Download Factual Basis)

One Defendant Was a Police Officer with the Dallas Independent School District

DALLAS — Favian LaTorre, 57, of Dallas, was sentenced this morning, by Chief U.S. District Judge Sidney A. Fitzwater, to one year and one day in federal prison, and ordered to pay $10,493 in restitution, following his guilty plea in February 2013 to one count of conspiracy to harbor an alien.  His co-conspirator, Gloria Palacios, 40, also of Dallas, pleaded guilty to the same offense and was sentenced earlier this month to 24 months in federal prison.  LaTorre must surrender to the Bureau of Prisons on January 7, 2014; Palacios has been in custody since her arrest in December 2012.  Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

LaTorre was a police officer with the Dallas Independent School District (DISD).

According to his filed factual resume, in July 2008, LaTorre began recruiting “F.P.,” who was 15-years-old, to come to the U.S. illegally to provide care for a young child he and co-conspirator Palacios had together.  LaTorre had taken his young child to El Salvador for a brief period during 2008, and during that time, F.P. had cared for the child in El Salvador.

LaTorre and Palacios promised F.P.’s parents that they would arrange for F.P. to travel to the U.S. with the help of a “coyote.”  LaTorre and Palacios also promised F.P.’s parents that they would pay to smuggle F.P. into the U.S. and that she would be safe.

F.P. traveled from El Salvador to the U.S. with the “coyote” hired by LaTorre and Palacios.  When F.P. entered the U.S. with the “coyote,” LaTorre picked F.P. up in Houston and transported F.P. to Palacios’s residence in Dallas.

F.P. lived and worked in Palacios’s residence, caring for LaTorre and Palacios’s young child, from September 2008 until approximately February 2009.  During this time, LaTorre concealed, harbored and shielded F.P., an alien from El Salvador, from detection in Palacios’s residence, and elsewhere.

The case was investigated by the FBI and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).  Assistant U.S. Attorney Errin Martin prosecuted.