Northern District of Texas

FORT WORTH, Texas — Barry Robert Turner, 43, of Arlington, Texas, was sentenced this morning by U.S. District Judge John McBryde to 480 months (40 years) in federal prison following his guilty plea in July 2013 to one count of distribution of child pornography, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

According to the factual resume filed in the case, in December 2012, Turner used the Internet and Google G-mail to email a one-minute video of child pornography, depicting a toddler, to another individual. 

According to the complaint filed in the case, in October 2012, Turner responded to an advertisement on Craigslist for taboo phone sex and continued to correspond with the individual who had placed the ad.  Turner sent the individual a video of child pornography and in subsequent emails and texts they discussed the child porn images they shared.

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

The case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Aisha Saleem.

AMARILLO, Texas — Luis Gerardo Alvarado, 22, was sentenced this morning, by U.S. District Judge Mary Lou Robinson, to 135 months in federal prison, following his guilty plea in September 2013 to one count of enticement of a minor and aiding and abetting.  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, while living in Brownwood, Texas, Alvarado met a minor female, who lived in Coleman County, Texas, by contacting her through Facebook chat.  From mid-March 2013 until April 8, 2013, Alvarado communicated with the minor female and attempted to persuade and entice her to engage in sexual activity with him.  Alvarado knew the minor female was under 17 years of age.  Alvarado has been in federal custody since July 1, 2013, when he was received from state custody, where he was being held on pending state charges.

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), the Coleman Police Department, the Santa Anna Police Department and the Brownwood Police Department.  Assistant U.S. Attorney Steven M. Sucsy prosecuted.

DALLAS — Samuel George Hurd, III, 28, was sentenced late this afternoon, by U.S. District Judge Jorge A. Solis, to 15 years in federal prison for his role in a cocaine and marijuana distribution conspiracy, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. 

Hurd, who is in custody, pleaded guilty in April 2013 to a superseding indictment that charged conspiracy to possess with intent to distribute a controlled substance.  That superseding indictment, which was returned by a federal grand jury on March 19, 2013, alleged that from July 2011, to on or about June 6, 2012, Hurd conspired to possess with the intent to distribute five kilograms or more of cocaine and 100 kilograms or more of marijuana.  It also included a sentencing notice stating that on or about June 6, 2012, Hurd, while on pretrial release, attempted to possess with intent to distribute five kilograms or more of cocaine and at least 50 kilograms, but less than 100 kilograms, of marijuana.

Two co-defendants, Toby Lujan, 28, and Jesse Tyrone Chavful, 46, have pleaded guilty to their roles in the drug conspiracy.  Chavful was sentenced on October 23, 2013, to serve a total of 127 months in federal prison.  Lujan is scheduled to be sentenced on January 8, 2014. 

The investigation was led by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) with assistance from the Denton Police Department.  Deputy Criminal Chief Assistant U.S. Attorney Gary Tromblay and Assistant U.S. Attorneys John Kull and Errin Martin prosecuted.

FORT WORTH, Texas— Latona E. Long, 27, of Greenville, Texas, and Michael M. Bodie, 41, of North Richland Hills, Texas, were sentenced today, by U.S. District Judge Terry R. Means, to 120 months, and 108 months, respectively, following their guilty pleas in June 2013 to distribution of child pornography.  Bodie was arrested in February 2013, and Long was arrested the following month, on related charges outlined in criminal complaints; they have been in custody since that time.  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 February 2013, FBI agents executed a search warrant at Bodie’s home, regarding his use of a Yahoo email account that was being used to send and receive images of child pornography.  Bodie admitted that he did use that account to send and receive child pornography and that he had corresponded via Yahoo email, with a person, L.L., now known to be Long.

In February 2013, FBI agents and task force officers met with Long at her home regarding her use of a Yahoo email account that was used to send and receive child pornography.  Long also said that she had corresponded via Yahoo Instant Messenger with a person she knew as M.B., now known as Bodie, and that during their communications, she sent Bodie an image 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 the FBI.  Assistant U.S. Attorney Aisha Saleem prosecuted.

FORT WORTH, Texas — Deundrea R. Miller, 27, was sentenced today by U.S. District Judge Terry R. Means to 121 months in federal prison following his guilty plea in June 2013 to one count of count of conspiracy to commit sex trafficking of a minor, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

Miller’s co-defendant, Brittanie S. Brattain, 22, who pleaded guilty to the same offense, was sentenced in October 2013 to 72 months in federal prison. 

According to documents filed in Miller’s case, prior to September 2012, Miller had a relationship with Brattain.  In late September or early October 2012, Miller and Brattain met Jane Doe.  They agreed to take pictures of Jane Doe to post advertisements for “dates” on Back Page that would be used for commercial sex acts.  Miller and Brattain used a cell phone to take the pictures and post the advertisements.

Some of the commercial sex acts involving Jane Doe occurred in motels in East Fort Worth.  After the commercial sex acts, Jane Doe would give the money she received to Miller.  Miller and Brattain harbored and maintained Jane Doe while they stayed in these motels.

In January 2013, Miller and Brattain rented a duplex in Fort Worth where commercial sex acts involving Jane Doe also occurred.  Also in January 2013, Miller and Brattain posted “escort” advertisements involving Jane Doe.  While Jane Doe stayed with Miller and Brattain, Miller and Brattain received financial benefit from her participation in commercial sex acts, all in reckless disregard that Jane Doe was under age 18.

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 other members of the North Texas Anti-Trafficking Team, including the Arlington, Fort Worth and Dallas Police Departments, the Texas Department of Public Safety and the Texas Attorney General’s Office.  Assistant U.S. Attorney Aisha Saleem prosecuted.

LUBBOCK, Texas — Catarina Munos Robledo, 24, of Waelder, Texas, was sentenced on Friday, by U.S. District Judge Sam R. Cummings, to 46 months in federal prison, following her guilty plea in August 2013 to one count of possession with the intent to distribute cocaine base (crack cocaine), announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

According to documents filed in the case, on March 20, 2013, an officer with the Early (Texas) Police Department stopped a Chrysler Town and Country vehicle, which was being driven by Robledo, for a traffic violation.  After noting inconsistencies in the explanation she gave the officer about her travel, the officer asked for consent to search the vehicle, which she granted.  The officer found a plastic bag containing eight “cookies” of suspected cocaine base in in the vehicle’s center console.  Robledo was arrested and testing confirmed the substance was in fact, cocaine base, with a net weight of 72.25 grams.

The case was investigated by the Early Police Department and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).  Deputy Criminal Chief Assistant U.S. Attorney Denise Williams prosecuted. 

Plane, With Approximately 160 Pounds of Marijuana on Board, Crashed at Yoakum County Airport

LUBBOCK, Texas — A pilot and his passenger, who belly landed their Beechcraft plane at the Yoakum County Airport on April 30, 2013, and subsequently admitted possessing with the intent to distribute 50 kilograms or more of marijuana, were sentenced this morning in federal court in Lubbock, Texas.  Pilot Gregory Thomas, 50, of Sacramento, California, and his passenger, Dorothea Cangelosi, 66, of Waller, Texas, were each sentenced by U.S. District Judge Sam R. Cummings to 24 months in federal prison.  Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. 

According to plea documents filed in the case, on April 30, 2013, deputies with the Yoakum County Sheriff’s Department (YCSD) responded to a plane crash at the Yoakum County Airport, in Plains, Texas.  When they arrived, they observed a Beechcraft Bonanza A36 plane that had belly landed in a field approximately 50 yards past the end of the runway. 

On April 29, 2013, the day before the crash, Cangelosi flew a commercial airline from Houston, Texas, to Sacramento, California, where she met up with Thomas, a charter pilot, who was paid approximately $5,000 cash to fly her from Sacramento back to Houston.  They left Sacramento during the early morning hours of April 30, 2013, and in route to Houston, landed in Plains to refuel.  After fueling, the plane encountered engine problems when attempting to take off and crashed.

The YCSD received a 911 call from an individual who reported seeing a female with bags by a road that runs parallel to the airport.  Later, deputies located four large canvas duffel bags that were hidden next to a bush more than 100 yards from the crash site.  A YCSD drug-detector dog alerted on the bags for the presence of drugs and deputies discovered 151 individual packages of marijuana, with a total weight of 72.8 kilograms or 160 pounds.  The drug-detector dog also alerted to the presence of drugs inside the plane. 

Thomas admits that after the plane crashed, he and Cangelosi retrieved the duffel bags from the plane’s passenger compartment and hid them more than 100 yards away, across two barbed-wire fences and a road, from the plane.  Cangelosi admitted that Thomas carried most of the bags and threw some of them over the fence.  They both admitted that they had intended to distribute the marijuana to other individuals in Houston.

The case was investigated by the Drug Enforcement Administration, the Federal Aviation Administration, the YCSD and the Texas Department of Public Safety.  Assistant U.S. Attorney Justin Cunningham prosecuted.

DALLAS — David Joe Cano, was sentenced this morning by Chief U.S. District Judge Sidney A. Fitzwater to 87 months in federal prison and ordered to pay $1,795,125 in restitution for his nearly two-year role in a scheme to launder the proceeds of mortgage fraud.  Judge Fitzwater ordered Cano, who, according to a court order setting conditions for his release, is a resident of Arlington, Texas, to surrender to the Bureau of Prisons on January 7, 2014.  Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

Cano, 41, pleaded guilty in November 2012 to one count of conspiracy to engage in monetary transactions in property derived from specified unlawful activity.  According to documents filed in the case, Cano was a mortgage loan officer at 1st Capital Investment located in Richardson, Texas.  From January 2006 to November 2007, Cano, along with other coconspirators, operated a scheme to obtain fraudulent loans from Bank of America and IndyMac Bank, as well as GreenPoint Mortgage Funding, Inc. and WMC Mortgage Corporation, both located in California, and Everett Financial Inc. dba Supreme Lending and America Homekey, Inc., both in Dallas.  Cano and his conspirators then laundered the money from those loans back to themselves using shell corporations such as Comex International Korea Corporation, Eagle’s Marc Enterprises, Inc. and Sunko Construction. 

To defraud the banks and mortgage lenders, Cano and his conspirators selected newly constructed or distressed properties whose value could be inflated without raising lenders’ suspicions.  Cano and company then recruited individuals with good credit scores to act as loan applicants for the purchase of the properties and paid them to apply for loans using applications that falsely inflated the applicant’s income and assets.  The applicants were deceitfully promised that the properties would be leased until they were sold at a profit and that the applicants would receive regular payments from the rental income that would be sufficient to repay their loans until the properties sold.  In reality, the applicants were left with unpaid loans that ruined their credit scores.

“Today’s sentence is a strong reminder how serious our courts consider mortgage fraud,” said Madie M. Branch, Acting Special Agent in Charge, Dallas Field office, IRS Criminal Investigation.  “IRS Criminal Investigation is committed to ‘following the money trail’ to ensure that those who engage in mortgage fraud are brought to justice.”

As charged in the Information, the scheme focused on seven properties located at:  St. George Place in DeSoto, Texas; Golden Pond Drive in Cedar Hill, Texas; Summerfield Court in Fairview, Texas; Tangleglen Drive in Dallas; Roma Court in Allen, Texas; Avondale Drive in Murphy, Texas; and Stephenville Drive in Frisco, Texas.

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 2,900 mortgage fraud defendants.  For more information on the task force, visit www.stopfraud.gov.

The case was investigated by IRS Criminal Investigation with assistance from the U.S. Postal Inspection Service and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.  Assistant U.S. Attorney Walt M. Junker was in charge of the prosecution.

DALLAS — Charles Michael Owens, 28, of Fort Worth, Texas, was sentenced by U.S. District Judge Sam A. Lindsay to 192 months (16 years) in federal prison for possessing, with the intent to distribute, methamphetamine, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

According to plea papers filed in the case, Owens admitted that on June 29, 2012, he knowingly and intentionally possessed, with intent to distribute, 50 grams or more of methamphetamine.

That morning, law enforcement observed Owens as he left his residence on McLemore Avenue in Fort Worth, got into a black Cadillac and drove away.  When a deputy with the Tarrant County Sheriff’s Office attempted to initiate a traffic stop because Owens had an outstanding misdemeanor warrant, Owens did not stop.  While he also did not stop for a Fort Worth Police officer after running a stop sign, he did tap his brakes and throw something out of the window.  He continued to drive and ran another stop sign; he eventually stopped in the 1100 block of North Riverside Drive in Fort Worth.

A narcotics-detecting dog alerted positively to the presence of controlled substances in Owens’s vehicle, and officers found $57,573 in cash in a non-functional 12-volt automotive battery that had been hollowed out.  Officers also recovered a plastic bag containing methamphetamine that Owens had thrown from the vehicle, and pursuant to a state search warrant, law enforcement recovered a digital scale and hand-written drug-related notes in his residence.

The case was investigated by HIDTA, the Fort Worth Police Department and the Tarrant County Sheriff’s Office.  Assistant U.S. Attorney Mary Walters prosecuted.  Assistant U.S. Attorney John de la Garza is handling the forfeiture.

AMARILLO, Texas — Seven defendants, who were arrested in an Organized Crime Drug Enforcement Task Force Operation (OCDETF) in September 2013, appeared in federal court today, before U.S. District Judge Mary Lou Robinson, and pleaded guilty to various drug and drug-related offenses.

Miguel Carrasco, 33, pleaded guilty to one count of possession with intent to distribute 50 grams or more of methamphetamine and aiding and abetting.  He faces a maximum statutory penalty of not less than five years or more than 40 years in prison and a $5 million fine.

Conrad Nava, aka “Chauncy,” 36, pleaded guilty to one count of operating an illegal gambling business.  He faces a maximum statutory penalty of five years and a $250,000 fine.

Jessie Herrera, Jr., 34, pleaded guilty to one count of possession with intent to distribute 50 grams or more of methamphetamine and aiding and abetting.  He faces a maximum statutory penalty of not less than five years or more than 40 years in prison and a $5 million fine.

Traci Michelle Ramos, 23, pleaded guilty to one count of distribution and possession with intent to distribute five grams or more of methamphetamine and aiding and abetting.  She faces a maximum statutory penalty of not less than five years or more than 40 years in prison and a $5 million fine.

Curtis Gonzales, 35, pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute controlled substances.  He faces a maximum statutory penalty of not less than 10 years and up to life in prison and a $10 million fine.

Shannon Drell Harris, aka “Shawn,” 43, pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute cocaine.  He faces a maximum statutory penalty of 20 years in prison and a $1 million fine.

Thiraphong Vongphrachanh, 22, pleaded guilty to one count of possession of a firearm in furtherance of a drug trafficking crime and aiding and abetting.  He faces a maximum statutory penalty of not less than five years and up to life in prison and a $250,000 fine.

Last week, three defendants in that OCDETF Operation and a related case pleaded guilty.  Floyd Daniel Teafatiller, 32, pleaded guilty to one count of possession with intent to distribute 50 grams or more of methamphetamine and aiding and abetting.  He faces a maximum statutory penalty of not less than five years or more than 40 years in prison and a $5 million fine.  Arcel Vega Martinez, 40, pleaded guilty to one count of unlawful use of a communications facility.  He faces a maximum statutory penalty of not more than four years in prison and a $250,000 fine.  Richard Anthony Rios, 36, pleaded guilty to one count of possession with intent to distribute 50 grams or more of methamphetamine and aiding and abetting.  He faces a maximum statutory penalty of not less than five years or more than 40 years in prison and a $5 million fine.

The investigation involved undercover purchases and search warrants.  In total, throughout the investigation, approximately $500,000 in cash, three kilograms of cocaine, 20 pounds of methamphetamine and six firearms were seized.

The remaining four defendants are set for trial on January 6, 2014. 

The investigation is being led by the DEA and FBI, along with the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Potter and Randall County Sheriff’s Offices, the Potter and Randall County Attorney’s Offices, the Potter and Randall County District Attorney’s Offices, the Amarillo Police Department, and the Texas Department of Public Safety.  Assistant U.S. Attorneys Jeffrey R. Haag, Christy Drake and Vicki Lamberson are in charge of the prosecution.

DALLAS — Refugio Ramirez-Garcia, aka “Cuco,” “Refugio,” “Miguel,” and “Arturo Ramirez,” 35, of Dallas, was sentenced yesterday by U.S. District Judge Sam A. Lindsay to serve a total of 240 months in federal prison for his role in heroin distribution conspiracies that he operated in the Dallas-Fort Worth metroplex, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

Ramirez-Garcia pleaded guilty in January 2013 to his role in both conspiracies.  In one case, he admitted that he was involved in a conspiracy, in 2006 and 2007, with co-defendants, Martin Laguna, Francisco Laguna, Marco Antonio Romero, Jaun Curz Puerto and Timothy Ryan Daniels, to distribute more than one kilogram of heroin.  His co-defendants received sentences ranging from 15 months to 180 months in federal prison.  In the other case, he admitted that from August 2010 to August 2012 he was involved in a conspiracy to distribute heroin.  In fact, when he was arrested on August 8, 2012, he was in possession of approximately 10 ounces of black tar heroin.

During the course of the earlier conspiracy, Ramirez-Garcia distributed heroin to his co-defendants and other individuals.  By way of example only, in late March 2006, officers with the Dallas Police Department executed a search warrant at Ramirez-Garcia’s apartment in Dallas and seized:  2,353 grams of black tar heroin; 3.6 grams of powder cocaine; $66,760 in cash and three digital scales.  Ramirez-Garcia admitted the cash seized from his apartment was proceeds from heroin sales.

The cases were investigated by the Coppell, Dallas and Farmers Branch Police Departments, the Dallas Independent School District Police Department – Criminal Investigations Division and the Drug Enforcement Administration.  Assistant U.S. Attorneys Keith Robinson and Aisha Saleem prosecuted. 

Defendant Also Ordered to Pay $830,000 in Restitution

DALLAS — Comfort Gates, 48, was sentenced this afternoon, by U.S District Judge David C. Godbey, to 72 months in federal prison and ordered to pay $830,000 in restitution following her conviction at trial in April 2013 on charges stemming from her involvement in the operation of Euless Healthcare Corporation (EHC) and Medic Healthcare Incorporated (Medic).  Gates is one six defendants convicted in the conspiracy.  Judge Godbey ordered that Gates, a current resident of Houston, surrender to the Bureau of Prisons on January 13, 2014.  Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

Gates, an employee of Medic, and coconspirator Godwin Umotong, 58, an employee of EHC and Medic, were each convicted at trial on one count of conspiracy to commit health care fraud.  Gates was also convicted on two counts of health care fraud and Umotong was also convicted on five counts of health care fraud.  Umotong is scheduled to be sentenced on December 2, 2013; he faces a maximum statutory penalty of 10 years in federal prison and a $250,000 fine on each of the counts of conviction.  He could also be ordered to pay restitution.

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, 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

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 1,500 defendants who have collectively billed the Medicare program for more than $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.

Defendant Threatened to Kill Everyone in the Bank’s Lobby

DALLAS — A Dallas man, who robbed a Chase Bank located on Lemmon Avenue in Dallas in 2011, was sentenced this afternoon.  U.S. District Judge Jane J. Boyle sentenced William Clary, 37, to 120 months in federal prison, following his guilty plea in July 2013 to one count of bank robbery.  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 August 1, 2011, Clary entered the Chase Bank, located at 4512 Lemmon Avenue in Dallas, approached a teller and presented a note that read, “I want 3600 dollars now!  Have a gun.  If you scream or signal I will kill you.”  Clary then threatened to kill everyone in the lobby if the teller did not comply with his demands.  In fear for her life, and the life of others, the teller removed cash from her drawer and gave it to Clary.  After Clary received the cash, he departed the bank. 

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

ABILENE, Texas — Aaron Charles Lustfeldt, 27, of Big Spring, Texas, was sentenced this morning, by U.S. District Judge Jorge A. Solis, to 240 months in federal prison, following his guilty plea in June 2013 to one count of receipt of child pornography, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

According to documents filed in the case, on February 1, 2013, the Big Spring Police Department was dispatched to Comanche Trail Park in Big Spring regarding a male exposing himself to children in the play area.  Officers located Lustfeldt, who admitted being in the park, but denied doing anything inappropriate, stating that he was not supposed to be at the park because he was a registered sex offender.  Later, as part of their investigation, officers located images of child pornography on his cell phone, and Lustfeldt eventually admitted that he had received and downloaded images from the Internet onto 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 case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Big Spring Police Department.  Assistant U.S. Attorney Justin Cunningham, of the U.S. Attorney’s Office in Lubbock, Texas, prosecuted.

DALLAS — Thomas S. Kantzos, 45, of Fort Worth, Texas, a former officer with the Arlington Police Department (APD), appeared this morning before U.S. Magistrate Judge Renée Harris Toliver and pleaded guilty to an Indictment charging exceeding access to a protected computer, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

As an officer with the APD, Kantzos was authorized to access law enforcement information obtained through the Texas Crime Information Center (TCIC), the National Crime Information Center (NCIC) and the Texas Law Enforcement Telecommunication System (TLETS), and he received specialized training on the authorized uses of the information, as well as the potential penalties for the misuse of such information.  Personal use of such information, including releasing information to members of the general public, is not authorized and violates APD policy. 

Prior to December 2011, Kantzos knew that “Person A” was an individual who trafficked in anabolic steroids.  In fact, Kantzos had received anabolic steroids from Person A for both his own use and for the use of other APD officers.  In November or December 2011, Person A suspected that he was under police surveillance.

On December 29, 2011, Person A saw a motor vehicle parked near his house and asked Kantzos to “run” the license plate because he was concerned that law enforcement was watching him and he didn’t want to get arrested for trafficking the anabolic steroids.  Kantzos, without a legitimate law enforcement purpose, used the computer in his patrol car, while he was on duty, to access the Texas Department of Public Safety’s (DPS) protected computer through TLETS, under the guise of conducting a stolen vehicle investigative inquiry.  His computer inquiry automatically searched for information about that motor vehicle contained in law enforcement computers located in Texas and in other states, such as the NCIC computer.

Kantzos admits he knew the use of this computer for this purpose exceeded authorized use.  After Kantzos obtained the information about the vehicle, he relayed the information to Person A to help Person A avoid arrest, apprehension or disruption while Person A unlawfully trafficked in the anabolic steroids.

Kantzos, who remains on bond, faces a maximum statutory penalty of five years in federal prison and a $250,000 fine.  Sentencing is set for February 12, 2014, before U.S. District Judge Barbara M. G. Lynn.

The case is being investigated by the FBI and the Texas Ranger Division of the Texas DPS.  Deputy Criminal Chief Assistant U.S. Attorney Gary Tromblay and Assistant U.S. Attorney Mark Penley are prosecuting.

Defendant and Co-Conspirators Attempted to Fraudulently Obtain Millions of Dollars in Tax Refunds for Their Own Use and Benefit

DALLAS, Texas — After a nearly week-long trial before U.S. District Judge Barbara M. G. Lynn, a federal jury in Dallas has convicted Ogiesoba City Osula, 37, of Dallas, on all 16 counts of a second superseding indictment charging various offenses stemming from his role in a conspiracy to use stolen identities to fraudulently obtain federal income tax refunds.  Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

Osula’s four defendants charged in the case have entered guilty pleas:

George Ojonugwa, 32, of Garland, Texas; Eseos Igiebor, 43, of Richardson, Texas; and Ebenezer Legbedion, 42, of Lagos, Nigeria; each pleaded guilty to one count of conspiracy to commit wire fraud.  Igiebor also pleaded guilty to one count of aggravated identity theft.  Evelyn Nyaboke Haley, 34, of Dallas, pleaded guilty to one count of conspiracy to defraud the government with respect to claims.

Specifically, late Friday afternoon, the jury convicted Osula on one count of conspiracy to commit wire fraud, mail fraud and bank fraud; seven counts of presenting fraudulent claims upon the United States; two counts of fraud in connection with access devices and aiding and abetting; and six counts of aggravated identity theft and aiding and abetting. 

The maximum statutory penalties, per count, are:  conspiracy to commit wire fraud, mail fraud and bank fraud – 30 years; fraud in connection with access devices – 15 years; and aggravated identity theft – two years.  In addition, each count carries a fine of up to $250,000 and restitution could be ordered.

The government presented evidence at trial that Osula conspired to defraud the government by using stolen identity information and false information to create and electronically file false tax returns to fraudulently claim refunds.  Osula and his coconspirators had the refunds credited to stored value cards or bank accounts opened with stolen taxpayer identity information.  While Osula and his co-conspirators fraudulently obtained millions of dollars in tax refunds, they filed additional fraudulent returns in an attempt to obtain millions more in tax refunds for their own use and benefit.

The government also presented evidence that Osula and his coconspirators were sending information to and trading information with a group running a similar scheme in Cincinnati, Ohio.  On Nov. 8, 2011, Osula and Ojonugwa, who were in a parked car after midnight with the leader of the Cincinnati ring, were questioned by police in a Cincinnati suburb.  A drug detection dog alerted on the vehicle, and when it was searched, police found more than $300,000 in cash and money orders and numerous debit cards.  During that incident, while Osula was in a police car and waiting to be questioned, he ate a debit card.

According to documents filed in this case and statements made in court:

Stolen Identity Refund Fraud (SIRF) is a common type of fraud committed against the United States government that results in more than $2 billion in losses annually to the United States Treasury. SIRF schemes generally share a number of hallmarks: 

• SIRF perpetrators obtain personal identifying information, including Social Security numbers and dates of birth, from unwitting individuals.
• SIRF perpetrators complete Individual Income Tax Return Form using the fraudulently-obtained information and falsifying wages earned, taxes withheld and other data. Perpetrators use data to make it appear that the “taxpayers” listed on the fraudulent 1040 forms are entitled to tax refunds – when in fact, the various tax withholdings indicated on the fraudulent 1040s have not been paid by the listed “taxpayers,” and no refunds are due.
• Perpetrators direct the U.S. Treasury Department to issue the refunds through checks (Tax Refund Treasury Checks) generated by the fraudulent 1040 forms to locations they control or can access, in various ways.
• With Tax Refund Treasury Checks now in hand, SIRF perpetrators generate cash proceeds. Certain SIRF perpetrators sell Tax Refund Treasury Checks at a discount to face value. In turn, the buyers then cash the Tax Refund Treasury Checks, either themselves or using straw account holders, by cashing checks at banks or check cashing businesses, or by depositing checks into bank accounts. When cashing or depositing Tax Refund Treasury Checks, SIRF perpetrators often present false or fraudulent identification documents in the names of the “taxpayers” to whom the checks are payable.

The investigation was conducted by IRS Criminal Investigation and the FBI.  Assistant U.S. Attorneys Mark Penley, Christopher Stokes and P.J. Meitl are prosecuting.  

Defendant Worked for Cushing MLP Asset Management, LP in Dallas

DALLAS — Daniel Lutz Bergin, 41, of Dallas, made his initial appearance this afternoon in federal court in Dallas, following his self-surrender on an indictment charging 15 counts of securities fraud, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.  Bergin entered a not guilty plea to the indictment.  He was ordered released on his own promise to appear, subject to certain conditions, including that he refrain from working in the financial services industry while on pretrial release.  A trial date was not set.

According to the indictment, from 2008 to May 23, 2013, Bergin was an equity trader employed by Cushing MLP Asset Management, LP (Cushing), an investment advisor located on Preston Road in Dallas.  Cushing was a wholly owned subsidiary of Swank Capital, LLC and had approximately $2.5 billion in discretionary assets under management.  Cushing provided advisory and portfolio management services to institutional clients, including high net worth individuals, investment companies, pooled investment vehicles, pension and profit sharing plans, charitable organizations and state/municipal government entities.

Primarily, Cushing invested client assets in energy infrastructure master limited partnerships (MLPs) that are traded on stock exchanges, royalty trusts and other energy-income investments.  Cushing has established policies and procedures, including a Code of Ethics, in compliance with regulatory requirements, that explicitly prohibit insider trading and outline restrictions on personal securities transactions by Cushing employees.

The indictment alleges that beginning in at least January 2010, until his termination on May 23, 2013, Bergin ran a “front-running” scheme in which he misused “inside” or “material, non-public” information when placing trades in a personal brokerage account held in his wife’s name.  This scheme allowed Bergin to take advantage of limited opportunities to buy and sell the same securities in which he was placing trades on behalf of Cushing’s clients’ and proprietary accounts.  Although Bergin disclosed certain personal brokerage accounts held in his name at Fidelity and Scottrade, he failed to disclose brokerage accounts in his wife’s name at Fidelity and eTrade.

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, the maximum penalty for each count of securities fraud, as charged, is 25 years in federal prison, a $250,000 and restitution.

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 2,900 mortgage fraud defendants.  For more information on the task force, visit www.stopfraud.gov.

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

(Download Factual Basis)

LUBBOCK, Texas — Jeffrey Hensley, 42, appeared in federal court this morning, before U.S. District Judge Sam R. Cummings, who upwardly departed from the U.S. Sentencing Guidelines and sentenced him to 142 months in federal prison.  Hensley pleaded guilty in July 2013 to three counts of bank robbery and credit union robbery, and he has been in custody since his arrest on April 22, 2013, following the execution of a federal search warrant at his residence in Lubbock.  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 September 14, 2012, at approximately 1:25 p.m., Hensley, carrying a bank bag and wearing blue jeans, a gray pull-over and a black baseball cap, entered the First United Bank, 9801 Indiana Avenue, in Lubbock, opened the bag and removed a note that he passed to a teller.  The note stated words to the effect of:  “Don’t make me show my weapon.”  Hensley told the teller, “Give me your bundles.  Keep your hand away from your button and quit stalling.”  The teller surrendered cash to Hensley who placed most of it in the bank bag, retrieved the note and exited the bank.

On December 8, 2012, at approximately 4:54 p.m., Hensley, carrying a bank bag, entered the Plains Capital Bank, 6002 Slide Road in Lubbock and handed a teller a note that read:  “Fill the bag with all the money in the drawer - if I have to show my weapon I will use it - you have 15 seconds!!”  Hensley ordered the teller to put the money in the bag and lifted his hooded sweatshirt as if to partially display a firearm.  The teller surrendered cash and Hensley stuffed the money inside the bank bag and exited the bank. 

On February 13, 2013, at approximately 3:45 p.m., Hensley entered the Alliance Federal Credit Union, 6601 Indiana Avenue in Lubbock, walked up to a teller and handed him a note.  Hensley then handed a pink cosmetic bag to the teller and told her:  “Hurry up!  Everything in the drawer goes in the bag.  Put the money in the bag.  Put the money in the bag.”  The teller surrendered the cash to Hensley who put it in the pink bag and exited the bank.

This case was investigated by the FBI, the Texas Department of Public Safety, the Lubbock Police Department and the Lubbock County Sheriff’s Office.  Assistant U.S. Attorney Jeffrey Haag prosecuted. 

LUBBOCK, Texas — Jose Fidencio Perez, 40, of Seagraves, Texas, pleaded guilty today, before U.S. District Judge Sam R. Cummings, to one count of possession of prepubescent child pornography and aiding and abetting.  Judge Cummings ordered a presentence investigation report with a sentencing date to be set after the completion of that report.  Perez, who remains on bond, faces a maximum statutory penalty of 20 years in federal prison, a $250,000 fine and a lifetime of supervised release.  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, Perez used a file sharing program on his computer to download child pornography.  In the course of searching for depictions of sexually explicit conduct, Perez downloaded and viewed numerous videos depicting 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 is being conducted by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Office of the Attorney General of New Mexico Investigations Division.  Assistant U.S. Attorney Steven M. Sucsy is in charge of the prosecution.

FORT WORTH, Texas — Dwight L. Looney, 62, appeared this morning before U.S. District Judge John McBryde and pleaded guilty to one count of production of child pornography.  He 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.  He will remain in custody pending sentencing, which is set for February 7, 2014, before Judge McBryde.  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, in May 2010, Looney knowingly used, persuaded and enticed “Jane Doe” to engage in sexually explicit conduct, and Looney used a digital camera to take a still image of that conduct.  Jane Doe was younger than 16 years old at the time.

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 U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Fort Worth Police Department.  Assistant U.S. Attorney Aisha Saleem is in charge of the prosecution.

U.S. Attorney Saldaña Encourages Participation in
National Prescription Drug Take-Back Day on Saturday, October 26, 2013

DALLAS — U.S. Attorney Sarah R. Saldaña of the Northern District of Texas announced that the district has joined the Dallas Area Drug Prevention Partnership to promote its campaign, entitled the “Medicine Abuse Project,” designed to target prescription drug abuse in our communities.  The campaign will bring together families, communities, industry, health care professionals, educators, government officials and law enforcement to curb teen medicine abuse, and ultimately save lives.

“I’m honored to work with local partners, including the Council on Alcohol & Drug Abuse, the Dallas Area Drug Prevention Partnership and various police departments, as well as with our federal partner, the Drug Enforcement Administration, to encourage the public to rid their homes of potentially dangerous, expired, unused and unwanted prescription drugs by turning them in to designated collection sites this Saturday, October 26, National Prescription Take Back Day,” said U.S. Attorney Saldaña.

“Prescription drug abuse has become a serious public health and safety issue and it is the Nation’s fastest-growing drug problem,” said Dan R. Salter, Special Agent in Charge, DEA Dallas Field Division.  “Oftentimes, the most common source for access to prescription drugs is the home medicine cabinet.  With the National Prescription Drug Take-Back campaign, we are aggressively reaching out to individuals to encourage them to rid their households of unused prescription drugs.  In working with the U.S. Attorney’s Office, our state and local law enforcement partners, the medical community, anti-drug coalitions and a concerned public, we can eliminate a major source of abused drugs through the Drug Take-Back campaign and the Medicine Abuse Project.”

Visit http://www.deadiversion.usdoj.gov/drug_disposal/takeback/ for the drop off location closest to you.  The service is free and anonymous; no questions will be asked.

Dr. Daniel K. Leong – Who Owned South Dallas Community Medical Center – is Also Ordered to Pay Nearly $900,000 in Restitution

DALLAS — Dr. Daniel K. Leong, 59, who owned South Dallas Community Medical Center (SDCMC) on Martin Luther King Blvd., in Dallas, was sentenced yesterday by U.S. District Judge Ed Kinkeade to 48 months in federal prison and ordered to pay $865,163 in restitution for his role in a conspiracy to defraud Medicare and Medicaid.  Leong must surrender to the Bureau of Prisons on January 15, 2014.  Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

Specifically, on the day his federal trial was to begin in January 2013, Leong pleaded guilty to one count of conspiracy to commit health care fraud.  Leong’s coconspirator in the case, Cal Graves, who worked as a physician assistant at the SDCMC, pleaded guilty to the same offense and was sentenced in February 2013 to a three-year term of probation and ordered to pay $294,946 in restitution.

According to documents filed in the case, by falsely representing that office visits and diagnostics were medically necessary, patients at SDCMC were prescribed controlled substances in exchange for submitting themselves to diagnostic tests.  This ensured that they would return to the clinic the next month, thus making themselves available for more tests.  Often, patients would exaggerate their pain level to provide a basis for a prescription for narcotics.  Leong benefitted from the exaggeration because it gave him “cover” to order more tests.  The patients were rarely referred to specialists for their persistent pain, and this process was repeated for up to several years without any actual treatment for some patients.

Leong and Graves frequently ordered tests known as electromyograms (EMG) that are used to diagnose neurological and neuromuscular problems.  These tests are also highly-reimbursable by Medicare and Medicaid.  Often, the test results were never read and Graves did not have the proper training to read them.

In February 2010, Leong signed a blank prescription that reflected his authority to prescribe controlled substances.  He instructed Graves and other SDCMC staff to copy this prescription as needed.  When patients came to SDCMC, Graves used the pre-signed prescriptions.

Medicare and Medicaid would not have paid claims for office visits, diagnostic testing or prescriptions if they had known either that the services were medically unnecessary and that Leong did not prescribe the medications.

The case was prosecuted by Assistant U.S. Attorney Mindy Sauter.  The investigation was conducted by the FBI, U.S. Health and Human Services (HHS) Office of Inspector General (OIG) and the Texas Attorney General’s Medicaid Fraud Control Unit.

The Medicare Fraud Strike Force operations are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.  Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,500 defendants who have collectively billed the Medicare program for more than $5 billion.  In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.

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

Defendant Had Crack Cocaine, Firearms and
Nearly $500,000 in Cash When Arrested

DALLAS — Lawrence Edward Knox, 42, of Dallas, was sentenced this afternoon by U.S. District Judge Jane J. Boyle to 228 months (19 years) in federal prison following his guilty plea in December 2012 to one count of possession with intent to distribute 280 grams or more of cocaine base (crack cocaine) and possession of a firearm in furtherance of a drug-trafficking offense.  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, the investigation began when law enforcement received information that an individual had obtained cocaine from Knox's residence on Saddleridge Drive in Dallas.  In early August 2012, Dallas Police SWAT executed a search warrant at his residence and found approximately 2.7 pounds of crack cocaine, four firearms and $469,302 in cash.  They also found pans, a strainer and other utensils in the kitchen that are used to manufacture crack cocaine.  Knox, who was home at the time of the search, admitted the drugs and currency were his and was arrested. 

According to the factual resume filed in the case, prior to his arrest, Knox had been convicted in this district on the federal offense of possession of a controlled substance with the intent to distribute.

As part of his plea agreement with the government, Knox will forfeit not only the cash and firearms, but also a 2004 Land Rover, furniture and televisions.

The case was investigated by the Texas Department of Public Safety and the Bureau of Alcohol, Tobacco, Firearms and Explosives.  Assistant U.S. Attorney Taly Haffar prosecuted.

Defendant Admits Brandishing a BB Gun During the Robbery

DALLAS — Rodney Dewayne Womack, 38, of Dallas, was sentenced this afternoon, by U.S. District Judge Jorge A. Solis, to 110 months in federal prison for robbing a BBVA Compass Bank located in Carrollton, Texas, in February 2013, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

According to documents filed in the case, on the morning of February 15, 2013, a male, later identified as Womack, entered the BBVA Compass Bank located at 3040 East Trinity Mills Road in Carrollton.  After entering the bank, he pointed a handgun, which law enforcement later determined to be a BB gun, at a teller and demanded money.  In fear, the teller put cash into the plastic bag that Womack provided.  Womack took the bag, walked out of the bank and was arrested later that day.

The case was investigated by the FBI and the Carrollton Police Department.  Assistant U.S. Attorney Keith Robinson was in charge of the prosecution.

DALLAS — Jesse Tyrone Chavful, 46, of San Antonio, Texas, was sentenced this afternoon, by U.S. District Judge Jorge A. Solis, to serve a total of 127 months in federal prison, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

Chavful, who admitted he agreed to help his cousin, former professional football player Samuel George Hurd, III, acquire cocaine to sell others, pleaded guilty in October 2012 to one count of conspiracy to possess with the intent to distribute five kilograms or more of cocaine. When he committed the instant offense, Chavful was on supervision for a federal drug-related firearm offense. Because Chavful committed this offense while on supervision, the district court revoked his supervision and ordered that he serve 30 months imprisonment, to be served consecutively to the 97-month sentence that he received for the instant offense.

Another defendant in the case, Toby Lujan, 28, is scheduled to be sentenced on January 8, 2014.  He pleaded guilty to one count of possession with intent to distribute 500 grams or more of cocaine and faces a maximum statutory penalty of not less than five years or more than 40 years in prison and a fine of up to $5 million.

According to plea documents filed in the Chavful case, from July 2011 through early June 2012, Chavful agreed to help Hurd acquire cocaine to sell to others.  While Hurd played professional football for the Dallas Cowboys, he conspired with others to possess with the intent to distribute cocaine and marijuana, and the conspiracy continued after he began playing football for the Chicago Bears.

During fall 2011, Chavful conspired with Hurd to obtain 10 kilograms of cocaine for Hurd to distribute to others.  According to the factual resume, while Hurd was playing football for the Chicago Bears, he contacted Chavful and asked him to find 10 kilograms of cocaine.  Chavful then met with witnesses at his T-shirt shop in San Antonio and negotiated for 10 kilograms of cocaine for Hurd.  On November 10, 2011, Chavful and a witness discussed drug loads going “north,” that is, to Hurd in Chicago.  Chavful advised the witness not to worry about the payment because Hurd had money.  Chavful also cautioned that Hurd could not be present when the drugs were delivered because of media concerns. 

During spring 2012, while on pre-trial release for pending federal drug offenses, Hurd met with Chavful at his San Antonio T-shirt shop and asked him to get him cocaine and marijuana.  In late May, Chavful met with a witness and agreed to buy five kilograms of cocaine and 200 pounds of marijuana, and told the witness that Hurd, whom he described as “the money,” was in on the transaction and ready to move.  On June 6, 2012, federal law enforcement officers arrested Chavful after the witness and an undercover officer delivered the drugs to Chavful.  Chavful admitted that he had phoned Hurd that day, at the telephone number listed under “Big Sam” in his cell phone contacts, to let Hurd know about the drugs.

U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated.  Deputy Criminal Chief Assistant U.S. Attorney Gary Tromblay and Assistant U.S. Attorney John Kull are prosecuting.

Defendant Represented Himself as a CPA to Assist Individuals and Businesses
Obtain Fraudulent Line-of-Credit Loans

DALLAS — Robert Pauley, 56, of Arlington, Texas, was sentenced this morning by U.S. District Judge Ed Kinkeade to 55 months in federal prison, and ordered to pay $2,595,000 in restitution for assisting individuals and businesses with fraudulent line-of-credit loans.  Judge Kinkeade ordered that Pauley surrender to the Bureau of Prisons on January 15, 2014.  Judge Kinkeade further ordered Pauley to surrender his Certified Public Accountant (CPA) license and to not practice in the field of accounting during the term of his supervised release.  Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

In November 2012, Pauley pleaded guilty to an Information charging one count of conspiracy to commit bank fraud, admitting that from at least July 2008 through at least December 2011, he conspired with others to make and submit false and fraudulent statements to banks in connection with personal and business line-of-credit loans.  A line-of-credit loan is a no-collateral loan based on the financial condition of the borrower.

The financial institutions funded the loans based on favorable personal financial statements and false tax returns prepared by Pauley for the loan applications.  Pauley admits that he misrepresented his status as a CPA to the financial institutions by failing to inform them that his CPA license had been revoked.  He received a percentage of the loan funds as a commission.

In November 2010, for example, Pauley prepared and submitted a loan application and supporting documents that contained false and fraudulent information to Regions Bank for a $200,000 loan in the name of DFW Royal Investments LLC.  Among other things, the tax returns provided to Regions Bank were fictitious in that they falsely identified the guarantor’s personal income as more than $300,000, when in was fact, it was approximately $38,000.  Pauley admitted that he submitted the false tax returns with the specific intent to defraud Regions Bank and that by making the false statements to secure the $200,000 loan, Pauley placed Regions Bank at risk of financial loss or civil liability.

The case was investigated by the FBI.  Assistant U.S. Attorney J. Nicholas Bunch was in charge of the prosecution.

FORT WORTH, Texas — Brittanie S. Brattain, 22, was sentenced on Tuesday, October 15, 2013, by U.S. District Judge Terry R. Means, to 72 months in federal prison, following her guilty plea in June 2013 to one count of conspiracy to commit sex trafficking of a minor, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

Brattain’s co-defendant, Deundrea R. Miller, 27, also pleaded guilty in June to the same offense and is scheduled to be sentenced on November 12, 2013. 

According to documents filed in Brattain’s case, prior to September 2012, Brattain had a relationship with Miller.  In late September or early October 2012, Brattain and Miller met Jane Doe.  They agreed to take pictures of Jane Doe to post advertisements for “dates” on Back Page that would be used for commercial sex acts.  Brattain and Miller used a cell phone to take the pictures and post the advertisements.

Some of the commercial sex acts involving Jane Doe occurred in motels in East Fort Worth.  After the commercial sex acts, Jane Doe would give the money she received to Miller.  Miller and Brattain harbored and maintained Jane Doe while they stayed in these motels.

In January 2013, Miller and Brattain rented a duplex in Fort Worth where commercial sex acts involving Jane Doe also occurred.  Also in January 2013, Miller and Brattain posted “escort” advertisements involving Jane Doe.  While Jane Doe stayed with Miller and Brattain, Miller and Brattain received financial benefit from her participation in commercial sex acts, all in reckless disregard that Jane Doe was under age 18.

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. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and other members of the North Texas Anti-Trafficking Team, including the Arlington, Fort Worth and Dallas Police Departments, the Texas Department of Public Safety and the Texas Attorney General’s Office.  Assistant U.S. Attorney Aisha Saleem prosecuted.

Case Related to the Fraud Conviction of Former UMC Vice President Greg Bruce

LUBBOCK, Texas — Rodolfo Reyes Mata, aka Rudy Mata, 40, of San Antonio, Texas, was sentenced this morning by U.S. District Judge Sam R. Cummings to18 months in federal prison and ordered to pay $54,750 in restitution following his guilty plea in July 2012 to one count of mail fraud and aiding abetting.  Judge Cummings ordered that he surrender to the Bureau of Prisons on November 22, 2013.  Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

From November 2010 through September 2011, Mata submitted 15 false and fraudulent invoices to University Medical Center in Lubbock (UMC) for ATAM Technology Solutions, knowing that the submission of such invoices would cause UMC to pay the invoices by mailing checks to addresses listed.  During the scheme, Mata and his friend, Robert Gregory Bruce, the former Vice President of UMC, caused UMC to pay approximately $54,750 to ATAM Technology Solutions for goods and services that were not provided.  ATAM Technology Solutions, according to the factual resume filed in the case, was in fact, an alter ego of Mata.  Mata used these funds for personal living expenses, educational expenses and travel and entertainment expenses. 

Bruce was sentenced last month to 51 months in federal prison and ordered to pay $737,492 in restitution to UMC.  He pleaded guilty in June 2013 to his part in the same offense.  In documents filed in Bruce’s case, he admitted that from June 2007 to December 12, 2011, he conspired with Mata to submit false and fraudulent invoices for two companies, B.R. Media Monitoring (an alter ego of Bruce) and ATAM Technology Solutions, knowing that the submission of such invoices would cause UMC to pay the fake invoices.  Over the course of the conspiracy, UMC paid approximately $681,908 on invoices for fake companies that did not provide goods or services as described in the invoices.  According to plea papers filed, Bruce used these funds, in part, to pay Mata’s personal living expenses, educational expenses, and travel and entertainment expenses.

The cases were investigated by the FBI.  Assistant U.S. Attorney Amanda R. Burch prosecuted. 

LUBBOCK, Texas — Joshua I. Suter, 24, of San Angelo, Texas, was sentenced this morning by U.S. District Judge Sam R. Cummings to 97 months in federal prison following his guilty plea in July 2013 to one count of possession of child pornography.  He has been in custody since his release was revoked earlier this month.  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, while living in San Angelo, Suter owned a computer which he kept at his residence.  That computer was connected to the Internet.  In the course of using the Internet to search for depictions of minors engaged in sexually explicit conduct, Suter downloaded and viewed numerous child pornography videos. 

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

The case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Air Force Office of Special Investigations, Goodfellow Air Force Base.  Assistant U.S. Attorney Steven M. Sucsy prosecuted.

Defendant Worked at Churches in Levelland and Lubbock

LUBBOCK, Texas—Trevor Jacob Fortner, 25, of Lubbock, Texas, was sentenced this morning by U.S. District Judge Sam R. Cummings to 48 months in federal prison, following his guilty plea in July 2013 to one count of attempted transfer of obscene material to a minor.  Judge Cummings ordered that Fortner surrender to the Bureau of Prisons on November 22, 2013.  Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

Most recently, Fortner was a youth minister at a church in Levelland, Texas; he has also worked in the graphics department of a church in Lubbock.

According to documents filed in the case, on May 7, 2013, Fortner responded to an online personal advertisement that had been posted by an undercover officer with the Lubbock Police Department (LPD).  Posing as a 15-year-old girl, the undercover officer responded to Fortner’s initial contact.  During ensuing emails and text conversations between Fortner and the undercover officer, Fortner repeatedly affirmed that he understood the girl’s age.

During these text conversations, Fortner discussed meeting the minor girl and described the kind of sexual activity he wished to engage in with her.  He asked her to send him “kinky pics” and “dirty pics,” and on May 7, 2013, he sent her a sexually explicit photograph of himself.  The following day, Fortner was interviewed by LPD officers and he admitted communicating with a 15-year-old girl and sending her a photograph of himself, which he acknowledged was obscene.

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

The case was investigated by the FBI, the LPD and the LPD’s Internet Crimes Against  Children (ICAC) Task Force.  Assistant U.S. Attorney Amanda R. Burch prosecuted.

WICHITA FALLS, Texas— Dewey Wells, 45, of Wichita Falls, Texas, was sentenced by U.S. District Judge Reed C. O’Connor on October 7, 2013, to 97 months in federal prison following his guilty plea in April 2013 to his role in a major methamphetamine distribution conspiracy operating in Wichita Falls, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

Specifically, Wells pleaded guilty to one count of conspiracy to possess with intent to distribute and to distribute and to possess with intent to manufacture and to manufacture methamphetamine.

According to documents filed in the case, Wells admitted that on multiple occasions between November 2011 and September 4, 2012, he received multi-ounce quantities of methamphetamine from co-conspirators Steve Ysasaga, David Calandreli and others in Wichita Falls.  Wells further admitted that he distributed the methamphetamine to co-conspirators Tommy Vasquez, Frankie Hubbard and others in the Wichita Falls area.

Wells also admitted that on March 8, 2012, he sold approximately 2.5 grams of methamphetamine to an undercover Texas Department of Public Safety (DPS) agent.  During the transaction, Wells told the undercover agent that his supplier went by the name of “Joker,” which is co-conspirator Ysasaga’s nickname.

In addition, Wells admitted that he sold methamphetamine to an undercover DPS agent on two other occasions that same month. 

To date, 36 of the 39 defendants charged in this conspiracy have entered guilty pleas; a total of 28 defendants have been sentenced.  The case against three defendants has not been resolved.

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.

Dr. Nicolas Padron Pleaded Guilty to Role in Conspiracy

DALLAS — A federal jury has convicted two local men on conspiracy and health care fraud charges related to their operation of a physician house call company in North Texas, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

On October 4, 2013, following a five-day trial before U.S. District Judge David C. Godbey, Lawrence Dale St. John, 66, and his son, Jeffrey Dale St. John, 41, both of Grand Prairie, Texas, were convicted on conspiracy and health care fraud charges related to their operation of A Medical House Calls, a physician house call company.   

Specifically, each defendant was convicted on one count of conspiracy to commit health care fraud and 13 substantive counts of health care fraud.  Each count carries a maximum statutory sentence of 10 years in federal prison and a $250,000 fine.  Restitution could also be ordered.  Judge Godbey remanded Jeffrey St. John into custody; Lawrence St. John was already in custody.  Sentencing is set for January 27, 2014.

Co-defendant Dr. Nicolas Alfonso Padron, 54, of Garland, Texas, pleaded guilty on September 10, 2013, to one count of conspiracy to commit health care fraud.  Dr. Padron, who joined A Medical as its medical director in December 2009, testified, as did a number of nurse practitioners, physician assistants and company staff, that services billed had never been performed. 

In a separate case, Dr. Padron also entered a guilty plea to one count of conspiracy to unlawfully distribute a controlled substance stemming from his operation of Padron Wellness Clinic, a “pill-mill,” that he operated in Dallas.  Dr. Padron has been in custody since his arrest in June 2012 on a related federal criminal complaint.

A Medical provided physician visits to Medicare beneficiaries in their homes rather than at a doctor’s office.  A Medical, which was also known as A+ Medical House Calls and ANM Physician House Calls, was owned by Lawrence St. John; Jeffrey St. John ran its daily operations.  A Medical had locations in Mesquite, Texas; Dallas; and Carrollton, Texas.  Its primary purpose was to certify and re-certify Medicare beneficiaries for home health services, regardless of the true condition of the patient.

Once A Medical established a Medicare beneficiary for physician home visit services, A Medical would submit billing for fraudulent care plan oversight claims.  The company didn’t provide primary care physician services to Medicare beneficiaries.

According to documents filed in the case and evidence presented at trial, from May 2010 to January 2012, the defendants conspired together and with others to defraud the Medicare program.  A Medical, at the direction of Lawrence and Jeffrey St. John, submitted claims to Medicare using Dr. Padron’s unique Medicare number, with Dr. Padron’s permission, regardless of the claim’s merit. 

The defendants conspired together to bill Medicare for care plan oversight by Dr. Padron for numerous beneficiaries when Dr. Padron was out of town, including dates when he was out of the country and on a cruise.

In total, the defendants billed taxpayers for $1.4 million of services that were either not medically necessary or not rendered at all.  Through the fraudulent certifications, Medicare was billed an additional $9.7 million by home health agencies.

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 Kate Pfeifle and J. Nicholas Bunch are in charge of the prosecution.

AMARILLO, Texas — A Fort Worth, Texas, resident, Bounthieng Sommay, 39, was sentenced on Tuesday, October 15, 2013, by U.S. District Judge Mary Lou Robinson, to 78 months in federal prison following his guilty plea in August 2013 to one count of being a convicted felon in possession of a firearm, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

Sommay, a Laotian immigrant in the U.S. illegally, has been in federal custody since May 15, 2013, when he was arrested in the Dallas/Fort Worth area on various charges outlined in a federal indictment. 

According to the factual resume filed in the case, on March 5, 2013, FBI special agents executed a search warrant at Sommay’s residence, as well as at his relatives’ residence, both located on Cane River Road in Fort Worth.  At Sommay’s residence, agents found a .45 caliber semi-automatic handgun and ammunition.  At his relatives’ residence, agents found two firearms, one having an obliterated serial number.  Sommay admitted he owned all of the firearms.

Sommay is a convicted felon, having been convicted in South Dakota in 2008 for possession with the intent to distribute controlled substances.

At the sentencing hearing, Judge Robinson also ordered that Sommay forfeit the firearms to the government.

The case was investigated by the FBI, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Potter County Attorney’s Office.  Assistant U.S. Attorney Vicki Lamberson is in charge of the prosecution and Assistant U.S. Attorney John de la Garza is handling the forfeiture.

LUBBOCK, Texas — Randy Lynn White was sentenced today by U.S. District Judge Sam R. Cummings to 33 months in federal prison, a term of three years supervised release, and ordered to pay $211,165 in restitution, following his guilty plea in June 2013 to an Information charging one count of tax evasion.  Judge Cummings ordered that White surrender to the Bureau of Prisons on November 7, 2013.  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, White admits that he intentionally and willfully did not file required tax returns for 2007, 2008 and 2009 in order to evade the payment of taxes due and owing to the United States.  White agrees that as a result of this criminal conduct, the tax loss to the U.S. for those years is $211,165.

White was the sole trustee of the Frank F. McMordie Jr Family Trust, f/b/o Frank F. McMordie III (the “Trust”).  According to the factual resume, White admits that he derived substantial benefits and income from the Trust, both in administration fees from the Trust paid to him, and in monies he took from the Trust for his personal use.  White had absolute control over the Trust’s assets, which consisted primarily of a large ranch in the Texas Panhandle that produced mineral interests.  White paid himself excessive administrative fees and spent most of the Trust’s remaining money on extravagant personal expenditures, such as making his personal house payments, and buying motorcycles, diamond and gold jewelry and cars.

The factual resume goes on to state that White attempted to conceal his extravagant expenditures by paying a relatively small amount of the Trust’s income to the Trust’s beneficiary, Frank F. McMordie III, who resided in Mexico.  White also admits that as part of his scheme to evade taxes, he disguised many of the funds that he diverted from the Trust’s bank account to his personal use by placing false business notations on the checks, falsely claiming that the expenditures were for business purposes.  These checks falsely indicated that he was using the funds to operate what he designated as the “south” ranch.  He falsely indicated that he was using the money for ranch operating expenses, such as cattle vaccines, loading chutes, cattle guards, trailers for the south ranch, fencing, and south ranch payroll, when, in fact, the Trust did not operate any ranch whatsoever.

The case was investigated by Internal Revenue Service Criminal Investigation.  Assistant U.S. Attorney Paulina Jacobo prosecuted.

LUBBOCK, Texas — Ernesto Garcia, 59, of Lubbock, Texas, was sentenced today by U.S. District Judge Sam R. Cummings to24 months in federal prison, and a term of three years supervised release, following his guilty plea in June 2013 to one count of perjury, stemming from his sworn testimony in a detention hearing held in May 2012 in federal court in Lubbock.  Garcia has been in federal custody since his arrest in late May 2012.  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, on April 16, 2013, the U.S. filed a Motion to Detain defendant Pena, in the case of U.S. v. San Juanita “Janie” Pena, Case No. 5:12-CR-024-C(2).  In that case, defendant Pena was charged with conspiracy to commit tax fraud and false statements, and numerous substantive counts of the same.  One of the government’s main allegations was that Pena had no home, residence, or place to live or go if she were released.  Pena contested the motion and a detention hearing was held on May 2, 2012.

During that hearing, according to the factual resume, Pena called Garcia as a witness to testify on her behalf.  After being sworn in, Garcia testified that he had known Pena for 10 to 12 years and that he could be responsible for her if she were released into his custody.  On cross-examination, in response to questions posed to him, Garcia testified that he did not have a criminal record.  In fact, Garcia well knew that he did have a criminal record, having been convicted in 1993 in Iowa for possession of a controlled substance.

The case was investigated by Internal Revenue Service Criminal Investigation.  Assistant U.S. Attorney Paulina Jacobo prosecuted.

Defendant Admits His Involvement in Cocaine Distribution Conspiracy

LUBBOCK, Texas — Inoe R. Valdez, Jr., 43, a former deputy sheriff with the Yoakum County Sherriff’s Department (YCSD), appeared in federal court today and pleaded guilty to a felony offense stemming from his involvement in a cocaine distribution conspiracy, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

Specifically, Valdez pleaded guilty to an Information charging one count of unlawful use of a communications facility.  Valdez, who will remain on bond, faces a maximum statutory penalty of 48 months 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. 

Valdez admits 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 case is being investigated 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 is in charge of the prosecution.

Defendant Also Ordered to Pay $9,985,403 in Restitution

DALLAS – Eldon A. Gresham, Jr., 67, formerly of Olney, Texas, was sentenced this afternoon, by U.S. District Judge Jorge A. Solis, to 168 months in federal prison, three years of supervised release, and ordered to pay $9,985,403 in restitution following his guilty plea in January 2013 to one count of mail fraud stemming from a foreign currency exchange (ForEx) scam he ran from January 2004 through June 2009.  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, Gresham recruited at least 90 individuals to invest in his ForEx trading business, The Gresham Company, which he operated out of Peachtree City, Georgia, where he resided.  Gresham falsely represented to potential investors that he consistently generated large investment returns by trading investor funds in off-exchange foreign currency contracts in the ForEx market.  Over the life of the scheme, Gresham fraudulently obtained approximately $15.8 million in investor funds.

As also noted in the superseding indictment, Gresham specifically targeted members of the Christian faith as potential investors, knowing that many of these Christian investors were elderly and particularly vulnerable to his scheme.  He induced Christians to give him funds for investment by telling them that his success in currency trading was a blessing and gift from God, which Gresham considered to be “his ministry.”  He also persuaded Christian investors to give him funds by telling them that the investors could later use investment profits to further God’s works.

According to the factual resume filed in the case, Gresham falsely represented inflated profits to investors and represented to several investors that he had never suffered any losses in his currency trading.  He also falsely represented to investors the financial condition of their investor accounts by sending monthly emails that included falsely inflated investment profits.  Gresham also falsely represented to investors that funds he distributed to existing investors were actual returns on investment for that investor, when he knew some of those funds were actually funds he received from new investors.

The U.S. Postal Inspection Service was in charge of the investigation.  Assistant U.S. Attorneys David Jarvis, J. Nicholas Bunch and Kate Pfeifle prosecuted.

Defendant Admits Exchanging Sexually Explicit Photos with a Minor Female

DALLAS — Aaron Garcia, 21, of Grand Prairie, Texas, appeared in federal court this morning and pleaded guilty, before U.S. Magistrate Judge Paul D. Stickney, to an Information charging one count of receipt of child pornography.  He faces a maximum statutory sentence of not less than five or more than 20 years in federal prison, a $250,000 fine and a lifetime of supervised release.  Judge Stickney remanded Garcia into custody.  Sentencing is set for January 13, 2014, before U.S. District Judge David C. Godbey.  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, the investigation began as a result of a cyber-tip to law enforcement indicating that in September 2012, a minor girl, “Jane Doe,” began using an app on her cell phone to have sexual conversations with an adult male.  The conversations included solicitations from both the adult male and Jane Doe to meet for sex.  Jane Doe identified herself as a 14-year-old, although she was actually 13.  The male also solicited nude photos of Jane Doe, which she sent.  He sent her two sexually explicit images of himself.

An analysis of Garcia’s iPhone by the North Texas Regional Computer Forensics Lab revealed that it contained more than 40 images of child pornography, not including the images sent by Jane Doe.

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 Grand Prairie Police Department and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).  Assistant U.S. Attorney Camille Sparks is in charge of the prosecution.

LUBBOCK, Texas — James Arthur Abney, 53, of San Angelo, Texas, was sentenced this morning, by U.S. District Judge Sam R. Cummings, to 46 months in federal prison and 10 years of supervised release, following his guilty plea in June 2013 to one count of possession of 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, while Abney resided in Ballinger, Texas, he used cell phones to search the Internet for images of child pornography.  He saved images of child pornography on his cellphones and downloaded some of the images onto his computer’s hard drive.

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), the Ballinger Police Department and the Runnels County Sheriff’s Office.  Assistant U.S. Attorney Steven M. Sucsy prosecuted.

DALLAS — Joseph Roy Brown, 39, of Collierville, Tennessee, and John Michael Kelly, 43, of Plano, Texas, were sentenced yesterday afternoon, by U.S. District Judge Jorge A. Solis, to twelve months and one day in prison, and a 12-month term of probation, respectively, following their guilty pleas earlier this year to their roles in a corporate hacking conspiracy.  Brown was ordered to surrender to the Bureau of Prisons on December 4, 2013.  Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

The lead defendant in the case, Michael Musacchio, 62, of Plano, Texas, was sentenced earlier this month by Judge Solis to serve a total of 63 months in federal prison, following his conviction at trial in March 2013 for conspiring to hack into his former employer’s computer network.  The issue of restitution is still under consideration by the court.  Musacchio was convicted on one felony count of conspiracy to make unauthorized access to a protected computer (hacking) and two substantive felony counts of hacking. 

According to the evidence submitted at trial and plea papers filed in the case, from 2000 to September 2004, Musacchio was the president of Exel Transportation Services, a third party logistics or intermodal transportation company that facilitated links between shippers and common carriers in the manufacturing, retail and consumer industries.

In 2004, Musacchio left Exel to form a competing company, Total Transportation Services, where he was the original president and CEO.  Two other former Exel employees from the Exel Information Technology (IT) Department, Brown and Kelly, also went to work at Musacchio’s new company.  Between 2004 and 2006, Musacchio and Brown, assisted by Kelly, engaged in a scheme to hack into Exel’s computer system to conduct corporate espionage.  Through their repeated unauthorized accesses into Exel’s email accounts, co-conspirators Musacchio and Brown were able to obtain Exel’s confidential and proprietary business information and use it to benefit their new employer and themselves as investors.

This was the first investigation of hacking for the purpose of corporate espionage that was conducted by the Justice Department’s Computer Crime and Intellectual Property (CCIP) Section, the U.S. Attorney’s Office for the Northern District of Texas and the FBI.

The FBI Dallas Field Office was in charge of the investigation.  Deputy Criminal Chief Assistant U.S. Attorney Linda Groves and Assistant U.S. Attorney Candina Heath, of the U.S. Attorney’s Office for the Northern District of Texas, and Trial Attorney Rick Green of the Criminal Division’s CCIP Section, prosecuted. 

FORT WORTH, Texas — After a one-day trial and less than 30 minutes of deliberation, a federal jury has convicted Bentley Mark Jenkins, 46, of Fort Worth, Texas, on one count of bank robbery.  Jenkins faces a maximum statutory sentence of 20 years in federal prison and a $250,000 fine.  He will remain in custody pending sentencing, which is set for January 10, 2014.  Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. 

According to evidence presented at trial and documents filed in the case, on February 9, 2013, Jenkins, wearing a towel over his head, presented a note to a teller at the Educational Employees Credit Union, located at 750 NE Alsbury Boulevard in Burleson, Texas.  That note stated, “give me all hundreds and fifty and no body gets hurt.”  A teller gave Jenkins all the hundreds and fifties he had in the cash drawer, but Jenkins became agitated and shouted, “more, more, more.”  Feeling threatened, the teller gave Jenkins the twenties that he had in his cash drawer.  Jenkins then grabbed all of the cash from the teller drawer and fled the credit union. 

Burleson Police arrested Jenkins, following a car and foot chase.  Jenkins was searched and a large amount of cash was found on his person and in a vehicle he was operating.

Paragraph Seven.

The case was investigated by the FBI and the Burleson Police Department.  Assistant U.S. Attorney John Bradford prosecuted.

Defendant Laundered Tens of Thousands of Dollars of Supposed Drug Trafficking Proceeds

DALLAS — Patrick Robert Simon, 34, of Dallas, Texas, was sentenced this morning by U.S. District Judge Jorge Solis to 24 months in federal prison, following his guilty plea in January 2013 to a criminal Information charging one count of money laundering, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.  Judge Solis ordered that Simon, a criminal defense lawyer, surrender to the Bureau of Prisons on January 8, 2014.

According to documents filed in the case, during Fall 2009, Simon met with an individual to discuss this individual’s desire to put aside proceeds from his drug trafficking activities for his family’s use during his upcoming imprisonment for that drug trafficking.  Simon discussed a few ways that he could create an apparently legitimate income stream for the individual’s family, and the fees that he would charge for doing it.

After numerous meetings and continued negotiations, on March 16, 2010, the individual met with Simon at Simon’s law office to transfer the cash.  Simon explained the scheme.  Simon stated that the individual was going to hire Simon’s firm to handle the appeal of his drug trafficking conviction.  Simon stated that he would use his attorney trust fund to write a check every month to the individual’s designee.  Simon explained that because it was a legal transaction, he would not have to report it.  The three of them agreed that the checks would be written for $7500, unless a different amount was specified later. The individual gave $110,000 cash to Simon.  Simon had a money counter on hand for the purpose of counting the cash.  Simon accepted the cash and attempted to use the money counter, but the machine malfunctioned and Simon counted the cash by hand.

During the time that Simon was counting the cash, the three repeatedly discussed the individual’s participation in the drug trade and that the money being counted was from his drug trafficking activities.  Simon also instructed the individual on a code to use in all future communications to discuss the scheme.  For example, Simon instructed them that if they needed Simon to increase the amount of the monthly check, they were to call Simon and tell him that a specified college football team was playing well, and Simon would increase the monthly check by $1,000 (to $8,500).  Similarly, if they wanted to decrease the amount of the monthly check, they were to call Simon and tell him that a specified professional football team was playing poorly, and Simon would decrease the monthly check by $1,000 (to $6,500). Since the cash delivery, and in execution of the money laundering scheme, Simon paid the individual’s designee on a monthly basis.

The case was investigated by Internal Revenue Service Criminal Investigation.  Deputy Criminal Chief Assistant U.S. Attorney Jay Dewald prosecuted.

Co-Defendant, Who Murdered a Brinks Security Guard, Serving Two Consecutive Life Sentences

DALLAS — Jesus Sandoval, 51, was sentenced this morning by U.S. District Judge Barbara M. G. Lynn to 40 years in federal prison after pleading guilty in January 2013 to his role in three violent, takeover-style, armed bank robberies that he and co-conspirator Enrique Lopez, 29, committed in 2009, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

Specifically, Sandoval pleaded guilty to one count of conspiracy to commit bank robbery and two counts of using, carrying, and brandishing a firearm during and in relation to, and possessing firearm in furtherance of a crime of violence.

Lopez was sentenced in October 2012 to two consecutive life sentences, plus 85 years in federal prison, following his guilty plea in June 2012 to murdering a Brinks Security Guard and committing five violent takeover-style, armed bank robberies.

Factual resumes filed in the case detail the robberies.  On February 13, 2009, Lopez and Sandoval, armed with firearms, robbed a Loomis security guard as he replenished cash in an automatic teller machine (ATM) located at the Bank of America on Camp Wisdom Road in Dallas.  Lopez grabbed the guard from behind, put a pistol to his neck, threatened to kill him and demanded money.  The two took the guard’s service weapon and money bags, and Lopez fired at the Loomis driver.

On August 1, 2009, Lopez and Sandoval, each armed with a firearm, robbed the Wachovia Bank located at 39703 Lyndon B. Johnson Freeway, in Dallas, threatening bank employees with death during the course of the robbery.  After taking the cash, they fled in a vehicle fitted with stolen license plates.

On the morning of October 3, 2009, Sandoval and his accomplice, Lopez, each armed with a loaded pistol, entered the Chase Bank located at 12329 Lake June Road in Balch Springs.  The bank was celebrating its grand opening and more than 40 people were in the bank.  Lopez and Sandoval, with their pistols, threatened the lives of the people inside the bank and claimed they had a bomb in the backpack that would detonate if anyone notified the police.  Following a high-speed chase, Lopez and Sandoval were arrested.  Police recovered the loaded pistols, the bank’s money and the backpack from the car, which, while it did not contain a bomb, contained two boxes of ammunition.   

The case was investigated by the FBI, the Dallas Police Department and the Balch Springs Police Department.  Assistant U.S. Attorneys Brandon McCarthy and Jerri Sims prosecuted.

AMARILLO, Texas —– Sarah R. Saldaña, U.S. Attorney for the Northern District of Texas, Dan R. Salter, Acting Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Dallas Field Division, and Diego Rodriguez, Special Agent in Charge for the FBI Dallas Division will host a Press Conference TODAY, TUESDAY, SEPTEMBER 24, 2013, AT 2:00 P.M. to announce a major law enforcement action in Amarillo.

DIGNATARIES ATTENDING INCLUDE:

     Sarah R. Saldaña, U.S. Attorney, Northern District of Texas
                                    John Parker, First Assistant U.S. Attorney, Northern District of Texas
                                    Dan R. Salter, Acting Special Agent in Charge, DEA Dallas Field Division
                                    Diego Rodriguez, Special Agent in Charge, FBI Dallas Division
                                    Brian Thomas, Sheriff, Potter County
                                    Scott Brumley, County Attorney, Potter County
                                    Randall Sims, District Attorney, Potter County
                                    Joel Richardson, Sheriff, Randall County
                                    James Farren, District Attorney, Randall County
                                    Robert Taylor, Amarillo Police Chief                                                                                                      Randy Prince, Regional Commander, Texas Department of Public Safety

WHAT:          Press conference to announce major law enforcement action in Amarillo

WHEN:          TUESDAY, SEPTEMBER 24, 2013
                        2:00 p.m.

WHERE:        J. Marvin Jones Federal Building and U.S. Courthouse*
                               205 East Fifth Street (Front Steps)
                               Amarillo, Texas

*In case of inclement weather, Press Conference will be held at Randall County Sheriff’s Office located at 9100 S. Georgia St., in Amarillo.

Press inquiries regarding logistics should be directed to Kathy Colvin at 214-659-8600 or kathy.colvin@usdoj.gov.

Approximately $500,000 in Cash, Cocaine, Methamphetamine and Firearms Were Seized During Investigation

AMARILLO, Texas — A total of 14 individuals, residents of the Amarillo, Texas, and Panhandle area, are in custody following an Organized Crime Drug Enforcement Task Force (OCDETF) operation this morning led by special agents with the Drug Enforcement Administration (DEA) and the FBI, on conspiracy and drug trafficking charges outlined in two indictments returned by a federal grand jury earlier this month.

First Assistant U.S. Attorney John Parker, of the Northern District of Texas, Dan Salter, Special Agent in Charge of the DEA in Dallas, and Diego Rodriguez, Special Agent in Charge for the FBI Dallas Division, announced the results of the operation at a press conference held this afternoon in Amarillo, Texas.  Mr. Parker represented U.S. Attorney Sarah R. Saldaña who was not able to attend.

“Targeting drug cartels that have infiltrated the Panhandle area and jeopardized the safety and security of our communities will continue to be a priority in this district,” said First Assistant U.S. Attorney Parker.  “Today I commend the dedicated efforts of the DEA and FBI, who led this OCDETF investigation, along with the ATF, the Potter and Randall County Sheriff’s Offices, the Potter and Randall County Attorney’s Offices, the Potter and Randall County District Attorney’s Offices, the Amarillo Police Department and the Texas Department of Public Safety.”

“Today, the DEA, along with our federal, state, and local partners, dealt a serious blow to the Gulf Cartel, a Mexican Drug Trafficking Organization, operating in the Texas Panhandle,” said Acting Special Agent in Charge Salter.  “By combining efforts, this two-year investigation resulted in the federal indictment of 15 defendants determined to transport, distribute, and sell methamphetamine and cocaine throughout Amarillo and the surrounding communities.  The DEA is committed to partner with federal, state, and local law enforcement to keep our citizens safe not only here in the Texas Panhandle but throughout the country.  The DEA will continue to focus efforts to dismantle drug cartels determined to profit on the backs of addictions.”    

“The cooperation and coordination amongst local, state and federal law enforcement resulted in the shared success of identifying the many participants of this criminal organization,” said Special Agent in Charge Rodriguez.  “Today’s arrests reaffirm our commitment to the missions that we have each been charged to uphold.”

The following 11 defendants, who are charged in one indictment with conspiracy to distribute and possess with intent to distribute 500 grams or more of methamphetamine, were arrested this morning, and have made their initial appearance before U.S. Magistrate Judge Clinton E. Averitte.

• Omar Mendoza, a/k/a “Big O” and “O,” 36

• Sammy Augustin Galan, a/k/a “Hondu,” 36

• Miguel Carrasco, 33

• Conrad Nava, a/k/a “Chauncy,” 36

• Bobby Holman, a/k/a “Holmes,” 37

• Floyd Daniel Teafatiller, 32

• Jessie Herrera, Jr., 34

• Joey Nicholas Vallejo, 35

• Traci Michelle Ramos, 23

• Curtis Gonzales, 35

• Shannon Drell Harris, a/k/a “Shawn,” 43

Five of these defendants are also charged with substantive felony drug offenses and one defendant, Vongphrachanh, is also charged with a firearms offense.

The two below-listed defendants, also charged in that indictment, are presently in state custody:

• Arcel Vega Martinez, a/k/a “Chilango,” 40

• Thiraphong Vongphrachanh, 22

In the second indictment, two individuals, Juan Gabriel Mejia, a/k/a “J,” 37, and Richard Anthony Rios, a/k/a “Tex,” 36, are charged with conspiracy to distribute and possess with intent to distribute 500 grams or more of methamphetamine.  Rios, who was arrested earlier this month on a related criminal complaint, and remains in federal custody, is also charged in the indictment with three substantive methamphetamine offenses.  His trial is set for October 22, 2013.  Mejia remains a fugitive, believed to be in Mexico.

“Our local, state and federal law enforcement partners work every day to combat drug trafficking within Texas and beyond, and this proactive and successful operation will further enhance the safety of our communities,” said Randy Prince, Regional Commander of the Texas Department of Public Safety.  “This multi-agency law enforcement effort has resulted in the arrest of multiple suspects, and it was a top priority for each agency involved to dismantle and render this drug trafficking organization ineffective in its constant pursuit to distribute narcotics throughout our communities. Working together as a team enables us to maximize our efforts and resources, and thanks to the dedication and coordination of the DPS Criminal Investigations Division agents and all participating law enforcement partners, this unified operation has removed these suspects from our communities.”

The investigation involved undercover purchases and search warrants.  In total, throughout the investigation, approximately $500,000 in cash, 2.25 kilograms of cocaine, 1.75 pounds of methamphetamine and six firearms were seized.

A federal indictment is an accusation by a grand jury and a defendant is entitled to the presumption of innocence unless proven guilty.  If convicted however, the statutory penalties for the conspiracy and substantive drug counts range from 40 years to life in federal prison and millions of dollars in fines.  The maximum statutory sentence for the firearms offense charged is life in federal prison.

The case is being prosecuted by Assistant U.S. Attorney Jeffrey R. Haag.

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DALLAS — Kennedy Githaiga Wanyoike was sentenced yesterday, by U.S. District Judge Sam A. Lindsay, to 37 months in federal prison and ordered to pay $73,638 in restitution following his guilty plea in October 2012 to one count of conspiracy to file false claims.  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, Wanyoike conspired with others to file fraudulent tax returns with false wages and tax withholding that resulted in false claims. Wanyoike admitted that his role in the conspiracy was to open bank accounts to receive the electronically deposited refunds.  Wanyoike opened these five bank accounts at various banks in Dallas using an address of a private mail box in Dallas and listing his employer as “Nova Consultant Services.”  He had rented the private mail box and applied for the assumed name of “Nova Consultant Services” by using another person’s Texas driver’s license.  The total of deposits made into all five accounts he opened was $91,602.

This case was investigated by IRS Criminal Investigation and prosecuted by Assistant U.S. Attorney Christopher Stokes.

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

Specifically, 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.  Judge Cummings ordered a presentence investigation report with a sentencing date to be set after the completion of that report.  Gauna faces a maximum statutory penalty of not less than 10 years and up to life in federal prison and a $250,000 fine. 

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 is in charge of the prosecution.

Defendants’ Plane Met by CBP Air Interdiction as it Landed in Lubbock

LUBBOCK, Texas— Two men, who flew into Lubbock and arrived at Lubbock Aero on Wednesday evening, April 17, 2013, Michael Gallanter, 48, and Ethan Oliver Wynne-Wade, 31, were each sentenced today, by U.S. District Judge Sam R. Cummings, to 37 months in federal prison.  They each pleaded guilty in June 2013 to one count of possession with intent to distribute more than 50 kilograms, but less than 100 kilograms, of marijuana.   Judge Cummings ordered that they voluntarily surrender to the Bureau of Prisons next month.  Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

Gallanter and Wynne-Wade were arrested after their arrival in Lubbock and charged in a federal criminal complaint.  Subsequently, on May 15, 2013, a federal grand jury in Lubbock indicted them for possession with intent to distribute marijuana, hashish and psilocin/psilocybin.

According to documents filed in the case, U.S. Customs and Border Protection (CBP) Air Interdiction agents had received information that that a Piper PA28-181 aircraft, tail number N342TA, was operating under suspicious circumstances, in that the occupants of the aircraft paid for their fuel with cash, fueled their own plane, had a large amount of luggage in the aircraft’s passenger compartment and departed in poor weather conditions.   Agents also had information that the aircraft had been rented from the Travis Air Force Base Aero Club in Rio Vista, California, where some individuals renting aircraft were breaking flight rules and procedures.

CBP launched a Citation Interceptor Jet in an attempt to locate the aircraft.  On April 17, 2013, at approximately 10:15 p.m., CBP Air Interdiction agents contacted the aircraft to conduct a ramp check as it was about to refuel at Lubbock Aero, a refueling location located at the Lubbock International Airport.   Agents identified Gallanter as the pilot and Wynne-Wade as the passenger. 

CBP Air Interdiction agents met Gallanter as he deplaned and per their request, Gallanter provided them with the appropriate flight paperwork.  After a drug detector dog alerted to the presence of drugs, the plane was then searched by federal agents.  Agents located six large military-style duffle bags and four smaller bags inside the passenger compartment.  Agents opened the bags and located 98 plastic bags of marijuana, four plastic bags of hashish and two plastic bags of psilocin mushrooms.  In total, agents located approximately 69 kilograms of marijuana, four kilograms of hashish, and 1.37 kilograms of psilocin mushrooms.

The investigation was conducted by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), CBP Air Interdiction, the Drug Enforcement Administration and the Lubbock Police Department.  Assistant U.S. Attorney Justin Cunningham prosecuted.

LUBBOCK, Texas — Robert Gregory Bruce, aka Greg Bruce, 46, of Lubbock, Texas, was sentenced today by U.S. District Judge Sam R. Cummings to serve 51 months in federal prison following his guilty plea in June 2013 to one count of mail fraud and aiding and abetting.  In addition, Judge Cummings ordered that Bruce pay $737,492 in restitution to University Medical Center (UMC) and its insurer, advising Bruce, “with bad choices come bad consequences.”  Bruce voluntarily allowed the government to seize his retirement account at UMC prior to sentencing; those  funds will be used to make restitution.  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, beginning in June 2007 and continuing to December 12, 2011, Bruce conspired with Rodolpho Reyes Mata, aka Rudy Mata, to submit false and fraudulent invoices for two companies, B.R. Media Monitoring (an alter ego of Bruce) and ATAM Technology Solutions, knowing that the submission of such invoices would cause UMC to pay the fake invoices.  Over the course of the conspiracy, Bruce and Mata caused UMC to pay approximately $681,908 on invoices for fake companies that did not provide goods or services as described in the invoices.  Bruce used these funds, in part, to pay Mata’s personal living expenses, educational expenses, and travel and entertainment expenses.  Mata, 40, of San Antonio, Texas, pleaded guilty in July 2013 to the same offense and is scheduled to be sentenced by Judge Cummings on October 18, 2013.

Bruce also admitted that he used a UMC credit card to make unauthorized payments and purchases of approximately $55,584.

The case was investigated by the FBI.  Assistant U.S. Attorney Amanda R. Burch prosecuted.

Defendants Allegedly Deceived Potential Investors About ConnectAJet.com

DALLAS — Former stock promoter Jason Wynn and Attorney Martin Cantu were arrested this week by special agents with the FBI on charges outlined in a federal indictment, returned on September 11, 2013, and unsealed today, which charges each of them with offenses related a stock fraud scheme they ran involving a company known as ConnectAJet.com.  Cantu was arrested on Wednesday, made his initial appearance yesterday in federal court, and was released on bond.  Wynn was arrested this morning and is scheduled to appear this afternoon, at 2:00 p.m., for his initial appearance before U.S. Magistrate Judge David L. Horan.  Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

ConnectAJet.com, Inc. (CAJT) was a company that purportedly would provide the first online, real-time booking system for private jet charters.  Essentially, it would serve the same function as other well-known online booking systems but would focus on high-end chartered aircraft.  Wynn, who worked as a penny-stock promoter, used-car salesman and consultant, partnered with Cantu to build and market the idea into a profitable business.  Cantu owned the majority of shares of CAJT.

The indictment alleges that from approximately May to October 2007, Wynn, 31, and Cantu, 56, conspired with each other, and others, to commit securities fraud by deceiving potential investors regarding CAJT.  As part of their scheme, Wynn and Cantu caused public statements and advertisements to be issued that included numerous false and misleading statements about the progress and status of the company’s real-time booking system; CAJT’s relationships with reputable companies; and CAJT’s customer base.  The false and misleading statements led investors to believe CAJT’s online booking system was complete, when, in fact, it never was developed past the initial concept.  The false and misleading statements also led investors to believe that the company had achieved operational success it had not achieved.  These false and misleading statements increased demand for CAJT shares, which allowed Wynn, Cantu and others to sell their CAJT shares at artificially-inflated prices.

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

From August 2007 through January 2008, entities controlled by Wynn sold 4.2 million CAJT shares in the public market, resulting in profits of $2.585 million.  During the approximate two-month time frame of August to October 2007, Cantu realized $548,881 in profits from the sale of 250,000 CAJT shares he controlled.

The indictment charges each defendant with one count of conspiracy to commit securities fraud and one substantive count of securities fraud.  A federal indictment is an accusation by a grand jury and a defendant is entitled to the presumption of innocence unless proven guilty.  If convicted, however, the maximum statutory penalties are five years in prison and a $250,000 fine for the conspiracy count and 20 years in prison and a $5 million fine for the securities fraud count.   In addition, restitution could also be ordered.

Today’s announcement is related to 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 2,900 mortgage fraud defendants.  For more information on the task force, visit www.stopfraud.gov.

The case is being investigated by the FBI.  Assistant U.S. Attorneys P. J. Meitl and J. Nicholas Bunch are in charge of the prosecution.

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