Northern District of Texas

Fraudster Was Found Guilty of Running an Investment Fraud Scheme While Awaiting Sentencing on a Prior Securities Fraud Conviction 

DALLAS — Joshua Wayne Bevill, 33, of Dallas, was sentenced yesterday afternoon by U.S. District Judge Jane J. Boyle to a total of 30 years in federal prison and ordered to pay nearly $4 million in restitution for his conviction in January 2011 on one count of securities fraud and for his conviction in April 2013 for crimes he committed while awaiting sentencing on that conviction, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

For the 2011 conviction, Judge Boyle sentenced Bevill to the statutory maximum sentence of five years’ imprisonment.  In documents filed when he pleaded guilty, Bevill admitted that between 2005 and 2008, he and various associates raised several million dollars from investors by selling interests in supposed oil and gas development projects.  Bevill, however, was simply stealing investors’ money rather than using it to earn profits in the oil and gas business.  He pleaded guilty to one count of securities fraud and admitted that he defrauded numerous investors of more than $750,000.

While awaiting sentencing on that case, Bevill perpetrated a similar scheme from August 2010 until February 2011 under the name of Progressive Investment Partners.  Bevill contacted potential investors and sold them investments in a supposed oil and gas business.  As part of his scheme, Bevill used fictitious references that were set up to provide “glowing” reviews and exemplify the merits of investing with Progressive Investment Partners.  Bevill, however, simply stole investors’ money and spent it to pay for his lavish lifestyle.  The court ordered his arrest and detention in late February 2011, and he has been in custody since that time.

On April 8, 2013, following a bench trial on those crimes, Bevill was adjudged guilty on one count of mail fraud, two counts of securities fraud and one count of wire fraud, and committing each offense while on release.  For these convictions, Judge Boyle sentenced Bevill to 20 years’ imprisonment on each count, plus five additional years under 18 U.S.C. § 3147 for committing the offenses while on bond.  Each of the sentences from the 2013 conviction was ordered to run concurrent to each other, and the five-year term from the 2011 conviction was to run consecutive, for a total term of imprisonment of 30 years.  In addition, the more than $100,000 remaining in Bevill’s business bank account seized by the FBI was ordered forfeited to the United States.

These cases were prosecuted in connection with the President’s Financial Fraud Enforcement Task Force.  The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes.  With more than 20 federal agencies, 94 U.S. Attorney’s 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 nearly 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, please visit www.stopfraud.gov.

The FBI investigated the cases.  Assistant U.S. Attorneys J. Nicholas Bunch and Joseph Revesz prosecuted.

AMARILLO, Texas — Three men, all residents of California, who admitted their involvement in a conspiracy to steal interstate shipments of meat from Tyson Fresh Meat Packaging Plant in Amarillo, Texas, were sentenced this afternoon by U.S. District Judge Mary Lou Robinson. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

Ruben Ashikyan, 56, of Sherman Oaks, Calif., was sentenced to 18 months in federal prison and fined $3000.  Levon Ashikyan, 31, of Glendale, Calif., who is Ruben Ashikyan’s son, was sentenced to 12 months in in federal prison.  Grigor Darmandjian, 56, of North Hollywood, Calif., was also sentenced to 18 months in federal prison.  Each defendant pleaded guilty in May 2013 to one count of conspiracy to steal interstate shipments.  All defendants are in custody.

According to documents filed in the case, the FBI began an investigation in August 2011 after learning that a load of beef was stolen from a meat packing plant in Amarillo.  The theft occurred when someone, who had stolen the identity of a legitimate trucking company, picked up the load from the plant but failed to deliver the load to its intended destination in California.  The investigation revealed that there had been more than 28 similar cargo thefts that occurred between April 2011 and February 2013, and 19 of the 28 were meat thefts.  The cargo’s value varied from $30,000 to $200,000 for each theft.

In February 2013, the FBI was contacted about two loads of fresh meat as Monarch Trading Company had contacted MTS Transportation to have the loads, valued at approximately $175,324, picked up at the Tyson plant in Amarillo and delivered to a cold storage facility in Vernon, Calif.  MTS posted the loads on a commonly-used website and a trucking company, Expo Transportation & Logistics, Inc. from Muskegon, Michigan, replied.  Believing this was a theft attempt, MTS contacted the FBI, and in an effort to apprehend the thieves, a sting operation was arranged.

A few days later a Volvo tractor pulling a white refrigerated trailer arrived at the Tyson security gate.  There was a sign on the tractor that read, “Expo Transportation, Inc., Muskegon, MI, MC-389238 and USDOT-895024.”  The van was driven by Ruben Ashikyan; Levon Ashikyan and Darmandjian were passengers.  After Ruben and Levon Ashikyan emerged from the tractor and completed the Tyson paperwork, they drove the truck to the plant’s warehouse office, where they were arrested.  The investigation revealed that the tractor’s license plate did not belong to the Volvo and the trailer’s California license plate did not belong to the trailer.  Inside the tractor was a fictitious California registration card and there was an “Expo Transportation” sign on the Volvo tractor that covered different MC and USDOT numbers.

The case was investigated by the FBI, the Texas Rangers, the Dumas Police Department and the Potter County Attorney’s Office.  Tyson Foods and MTS Transportation provided valuable assistance in the investigation.

Assistant U.S. Attorneys Christy Drake and Vicki Lamberson prosecuted.

DALLAS — This morning, two businessmen, Stanley Thaw, of Frisco, Texas, and Michael Kincaid, of Plano, Texas, who owned and operated hyperbaric oxygen therapy companies located in Plano, Denton, Hurst, Houston, and San Antonio, Texas, appeared before U.S. District Judge Jorge A. Solis and pleaded guilty to their roles in a conspiracy to commit health care fraud. Kernell Thaw also appeared in court this morning and pleaded guilty to one count of conspiracy to make false statements to a financial institution regarding properties in Dallas that she purchased from a local home builder. 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, from January 2008 through June 2011, Stanley Thaw, 71, and Kincaid, 56, conspired together, and with others, to defraud Medicare by making false and fraudulent representations and promises in connection with payments of hyperbaric oxygen therapy (HBOT) services and items. HBOT is a therapy used to assist in healing diabetic sores or amputations in an outpatient setting. HBOT is administered by placing the patient in a hyperbaric oxygen chamber to receive increased levels of oxygen; each session of HBOT is commonly referred to as a “dive,” and generally lasted between ninety minutes and two hours.

The HBOT companies employed physicians to attend and supervise HBOT sessions to ensure that a patient was medically appropriate for the HBOT on that particular day and also to treat any medical emergency that may occur.  Stanley Thaw and Kincaid admitted that they defrauded Medicare by billing multiple times for the physician supervision and attendance of HBOT-related services, when, in fact, the physician only supervised and attended one session/dive that day.

Stanley Thaw and his co-conspirators were advised on multiple occasions that billing for multiple dive sessions was improper and that they had overbilled Medicare. They continued to direct fraudulent claims to Medicare and other health care programs through at least June 2011.

Kernell Thaw, 50, admitted that from July 2010 through April 2011, she and a co-conspirator, knowingly made false statements to influence a local bank and its mortgage division, in connection with obtaining a residential loan on a property in north Dallas. Had the financial institution known these false statements and representations were false, it would have rejected their loan.

Each of the three defendants faces a statutory maximum penalty of five years in federal prison, a $250,000 fine or twice the pecuniary gain to the defendant or loss to the victim, and restitution. Each of the defendants is scheduled to be sentenced on November 13, 2013, by Judge Solis. The plea agreement also includes a forfeiture allegation, which would require Stanley Thaw and Kernell Thaw to forfeit all proceeds traceable to their offenses.

The case is being investigated by the FBI, the U.S. Department of Health and Human Services - Office of Inspector General, the Office of Personnel Management - Office of Inspector General and the Texas Department of Public Safety. To learn more about health care fraud, please visit: http://www.stopmedicarefraud.gov/

Assistant U.S. Attorneys Sean McKenna, Glenn Harrison and P.J. Meitl are in charge of the prosecution.

DALLAS — Steven Chen Yu, 39, of Allen, Texas, appeared before U.S. Magistrate Judge Paul D. Stickney this morning and pleaded guilty to an information charging wire fraud in connection with his attempt to embezzle approximately $1 million from his employer, Hudson Advisors, LLC and its global subsidiaries (Hudson).  Yu, who remains on bond, faces a statutory maximum penalty of 20 years in federal prison, a $250,000 fine or twice any pecuniary gain to Yu or loss to the victim(s) and restitution.  A sentencing date was not set.  Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

Hudson was a globally integrated asset management company that performed due diligence and analysis, asset management and other support services for Lone Star Funds, a leading private equity firm that invested globally in distressed assets.  Hudson employed approximately 800 professionals in the U.S. and had affiliate offices in Europe, Canada and Japan.  Hudson’s main offices were in Dallas.

Hudson maintained a private client department that employed several private client managers.  It was responsible for providing accounting and bill payment services for Hudson owner J.G.  As part of his duties, Yu was authorized by Hudson to access all of J.G.’s personal financial information.

From September 2009 through March 2012, according to documents filed in the case, Yu engaged in several fraudulent acts which enabled him to embezzle substantial funds belonging to J.G.  For example, in September – October 2009, Yu fraudulently re-submitted duplicate invoices for legitimate repair work that had been done on J.G.’s boat, knowing that the invoices had already been paid.  Yu substituted his own personal bank account information, and in this manner, was able to fraudulently divert and embezzle $150,572 from J.G.’s accounts.

In another scheme, and in a similar manner, on December 1, 2009, Yu defrauded J.G. by also using duplicate invoices for landscaping work that had previously been done on J.G.’s personal residence in Massachusetts.  Yu was able to fraudulently divert and embezzle more than $69,000 in funds from one of J.G.’s trust accounts for duplicate payment on the landscaping work.  However, later in December 2009, Yu fraudulently caused the more than $69,000 to be deposited back into the account from which they had been diverted prior to Hudson becoming aware of any of Yu’s unlawful activities in connection with the fraudulent diversion or embezzlement of funds.

As part of a larger scheme, beginning in 2009 and continuing through March 2012, Yu fraudulently used and diverted J.G.’s funds which Yu used to make advance “estimated tax payments” for Yu’s benefit in connection with his own future state income taxes due in Massachusetts.  When Yu filed his personal income tax returns with Massachusetts, he claimed that he owed no taxes and requested Massachusetts pay him a complete refund of all the estimated tax payments he had made to the state with funds he had stolen from J.G.

During the period from about 2009 through March 2012, as part of his scheme to defraud, Yu attempted to steal and embezzle a total of approximately $1,292,000 from Hudson owner J.G.

The investigation was conducted by the FBI.  Assistant U.S. Attorney David L. Jarvis is in charge of the prosecution.

Defendant Also Ordered to Forfeit Vehicle, More Than $200,000 Cash and Jewelry

DALLAS — Omar Guerrero Acosta, aka “Pilas,” 30, of Dallas, was sentenced late last week by U.S. District Judge Jorge A. Solis to 84 months in federal prison, following his guilty plea in February 2013 to one count of conspiracy to distribute five kilograms or more of cocaine.  He was also ordered to forfeit a vehicle, approximately $209,493 in cash and jewelry that had been seized.  Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

Acosta is one of 13 defendants indicted in September 2011 for running a cocaine distribution conspiracy in the Dallas-Fort Worth area that was linked to the Los Zetas cartel.  Acosta is the tenth and last defendant convicted in the case to be sentenced; two defendants remain fugitives and charges against another were dismissed.  Convicted defendants and their sentences are:

                        Cesar Alonzo De La Rosa Jordan, aka “Gordo,” 30, 78 months
                        Rosendo Chappa, Jr., aka “Borado,” 39, 87 months
                        Joel Alejandro Rodriguez, aka “Joe,” 51, 98 months
                        Arturo Picaso, aka “Flaco,” 32, 152 months
                        Ricardo Morales, Sr., 52, 70 months
                        Ricardo Morales, Jr., aka “Rica,” 27, 3 years’ probation
                        Jose Luis Rodriguez, aka “Mas,” 41, 37 months
                        William Savala, aka “Will,” 39, 51 months
                        Reynaldo Facundo, 32, 63 months

Acosta admitted that beginning in January 2011, cocaine supply sources in Mexico began importing multi-kilogram shipments of cocaine into the U.S. through border checkpoints near Laredo.  Acosta admitted that couriers hired by the drug suppliers in Mexico delivered the cocaine to him and once the drugs arrived in Dallas, he and others maintained care, custody and control of the drugs at “stash” locations throughout the Dallas area.  The total amount of cocaine that was reasonable foreseeable to him during the time of the conspiracy was more than 100 kilograms.

In July 2011, for example, Acosta’s supply source delivered approximately 119 kilograms of cocaine to him and, subsequently, multi-kilogram quantities were distributed to multiple customers, including co-defendant Rosendo Chappa, aka “”Borado.”  Acosta admitted that on August 19, 2011, he and Chappa made arrangements for Chappa to deliver cash to Acosta in payment for seven kilograms of cocaine that Acosta had previously delivered to Chappa.  On August 19, 2011, Acosta met Chappa at a department store parking garage in Dallas and collected approximately $159,000 in drug proceeds.  Both Acosta and Chappa were arrested.  After Acosta was arrested, law enforcement searched an apartment on Noel Road that he used, and they seized approximately six kilograms of cocaine and an additional $48,000 in drug proceeds that belonged to Acosta.

The FBI began its investigation into this large-scale drug trafficking organization, the Morales-Picaso Drug Trafficking Operation (MPDTO), as a result of intelligence gathered from the “Operation Greedy Grove” investigation and prosecution which targeted a large-scale cocaine, crack cocaine and marijuana distribution organization known for its violence.  Operation Greedy Grove culminated in September 2010 with the arrest of 28 individuals on federal and state drug charges.  Law enforcement officers seized approximately three kilograms of cocaine, 14 firearms and $210,000 in U.S. Currency and assets.  The 16 defendants charged federally in that case have all pleaded guilty to their respective roles in the conspiracy have been sentenced, including defendant Gary Montgomery, who shot a Bureau of Alcohol, Tobacco, Firearms and Explosives agent during his arrest.  Montgomery was sentenced to 348 months in federal prison.

The investigation revealed that the MPDTO was involved in the illegal importation of approximately 100 kilos per month from Mexico.  Once the cocaine was smuggled across the border, the loads were distributed to members of the MPDTO in exchange for large sums of cash, which were then vacuum-sealed in bags, concealed in vehicles and transported back to Mexico.  During the course of this investigation, law enforcement seized more than 36 kilograms of cocaine, seven firearms, 14 vehicles and nearly $300,000 cash, which was forfeited to the U.S.

This Organized Crime Drug Enforcement Task Force (OCDETF) investigation was conducted by the FBI and the Dallas Police Department. Assistant U.S. Attorney Rick Calvert was in charge of the prosecutions and Assistant U.S. Attorney John de la Garza handled the forfeitures. 

DALLAS — William Luck, II was sentenced today by U.S. District Judge Jane J. Boyle to 37 months in federal prison, following his guilty plea in February 2013 to one count of failure to File IRS Form 8300. Judge Boyle ordered that he surrender to the Bureau of Prisons on August 21, 2013. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

According to the Internal Revenue Service (IRS), one must file Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business, if one’s business receives more than $10,000 in cash from one buyer as a result of a single transaction or two or more related transactions.

According to the factual resume filed in the case, Luck owned a business called Hydro Expo. Law enforcement learned that Hydro Expo was facilitating indoor marijuana cultivating operations by supplying growing equipment and supplies to persons who were illegally growing marijuana. During an undercover operation, law enforcement arranged the purchase of approximately $20,000 worth of growing equipment and supplies from Hydro Expo; Luck was clearly informed that the equipment and supplies were going to be used in an illegal indoor hydroponic marijuana cultivation operation.

In October 2009, according to the factual resume, Luck accepted $17,000 in cash from an undercover who then took delivery of the marijuana growing equipment. During that meeting, Luck stated that he would break up the $17,000 cash into smaller amounts and that he would not identify the purchasers in any paperwork. Luck never filed the required IRS Form 8300, as required by law and regulations.

According to the order setting conditions for his release, Luck is a resident of Fort Worth. According to the plea agreement filed in the case, Luck agreed to pay $17,000 to the IRS in satisfaction of restitution associated with conduct underlying his conviction.

The case was investigated by the Drug Enforcement Administration and Internal Revenue Service - Criminal Investigation.

Deputy Criminal Chief Assistant U.S. Attorney Jay Dewald was in charge of the prosecution.

Defendant Admits Robbing First United Bank, Plains Capital Bank and Alliance Federal Credit Union

LUBBOCK, Texas — Jeffrey Hensley, 42, of Lubbock, Texas, appeared before U.S. District Judge Sam R. Cummings today and pleaded guilty to three counts of bank robbery and credit union robbery, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. He faces a statutory maximum sentence of 60 years in federal prison and a $750,000 fine. Judge Cummings ordered a presentence investigation report with a sentencing date to be set after the completion of that report. Hensley has been in custody since his arrest in April 2013.

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.

On April 22, 2013, a federal search warrant was executed at Hensley’s residence and he was arrested. Hensley admitted committing the robberies but informed detectives with the Lubbock Police Department (LPD) that although a firearm was found at his residence, he never carried that firearm during any of the robberies.

This case is being investigated by the FBI, the Texas Department of Public Safety, the LPD and the Lubbock County Sheriff’s Office. Assistant U.S. Attorney Jeffrey Haag is in charge of the prosecution.

FORT WORTH, Texas — At a sentencing hearing held this morning in federal court in Fort Worth, an Arlington, Texas, man, Shani Shehu, 42, was sentenced by U.S. District Judge John McBryde to a two-year term of probation and fined $10,000, following his guilty plea in April 2013 to an information charging one count of conspiracy to obstruct justice by attempting to influence a federal judge. 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, from early February 2012 to mid-May 2012, Shehu conspired with Halid Amer, 42, formerly of Grand Prairie, Texas, to obstruct justice in an effort to unlawfully obtain a probated sentence for Amer. Amer had pleaded guilty in January 2012 to his role in a mortgage fraud conspiracy and at the time, was awaiting sentencing by U.S. District Judge Jorge A. Solis, in Dallas.

On February 4, 2012, according to the plea documents, Shehu arranged for Amer to meet with a man from Arlington who could put Amer in touch with someone who knew Judge Solis. At the meeting, Amer told the man that he was willing to pay a cash bribe to Judge Solis in return for a guarantee of a probated sentence. This man, however, advised law enforcement of the plans and the FBI arranged for an undercover agent to meet with Shehu and Amer. During an April meeting, Amer expressed concern that if he were caught making a bribe, he could make matters worse for himself. Then, in a meeting one week later, Shehu expressed concern that he believed that they might be working with an undercover law enforcement agent and wanted to receive assurances that they were not. On May 18, 2012, during a meeting with the undercover agent, Amer and Shehu continued negotiating the amount, method and timing of the payment of the cash bribe to Judge Solis.

On June 26, 2012, after the government learned of Amir’s plan to give a cash bribe to the judge in return for a probated sentence, the Court granted the government’s motion to revoke Amir’s bond. Amer is currently serving a 41-month federal prison sentence in Federal Correctional Institute (FCI) Memphis on the mortgage fraud conviction. The conspiracy case against Amir was transferred to the Western District of Tennessee, where he has pleaded guilty and been sentenced on the offense.

The case was investigated by the FBI. Assistant U.S. Attorney Jay Weimer prosecuted.

Defendant Was a Choir Teacher at Cross Timbers Middle School in Grapevine, Texas

DALLAS — Joel Anderson appeared in federal court this morning, before U.S. District Judge Reed C. O’Connor, and pleaded guilty to an information that charges one count of willfully making and subscribing a false income tax return.  Anderson faces a statutory maximum penalty of three years in federal prison, a $250,000 fine and restitution – including all taxes, interest and penalties owed to the U.S.  Sentencing is set for November 21, 2013, before Judge O’Connor.  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, Anderson, a Dallas resident, owned Richardson Gold & Silver Exchange and Frisco Gold & Silver Exchange.

Anderson willfully and substantially underreported his income, which he derived from these businesses, for tax years 2008 through 2010, according to the factual resume.  During those tax years, the factual resume goes on to state, Anderson deposited checks into his personal bank account from the sale of precious metals totaling more than $1 million, but did not report this income on his personal or corporate returns.

According to the plea agreement filed in the case, Anderson’s offense, including relevant conduct, resulted in a $194,273 tax loss to the U.S.

The case is being investigated by Internal Revenue Service – Criminal Investigation.  Assistant U.S. Attorney Joseph M. Revesz is in charge of the prosecution.

Defendant Was a Choir Teacher at Cross Timbers Middle School in Grapevine, Texas

DALLAS — Daniel Oberlender, 46, a former choir teacher at Cross Timbers Middle School in Grapevine, Texas, was sentenced today, by U.S. District Judge Reed C. O’Connor, to 84 months in federal prison, after pleading guilty in December 2012 to a criminal Information charging one count of distribution of child pornography.  He has been in custody since December 20, 2012, when he was arrested on a federal criminal complaint that was filed after law enforcement executed a search warrant at his residence in Grapevine on December 18, 2012.  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, Oberlender used his Apple Macbook computer to connect to the Internet and use Skype software to share a video file depicting a minor engaged in sexually explicit conduct.

Specifically, according to the factual resume filed in the case, on August 5, 2012, Oberlender used Skype to communicate with a person known as “DJH.”  During that communication, Oberlender permitted DJH to remotely view the entire contents of his computer screen.  Oberlender then began playing a video file, viewable by DJH, that depicted an adult male and a minor male engaged in sexually explicit conduct. The minor male, whose eyes are shut during the entire video, appears to be approximately five or six-years-old.  DJH, who was located in Dallas, used Evaer software to capture and record the contents of Oberlender’s computer screen, to include the transmission of the video.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse.  Led by U.S. Attorneys’ 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 to 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 was in charge of the prosecution.

DALLAS — Quaylan Anderson, 25, of DeSoto, Texas, was sentenced this afternoon by U.S. District Judge Jane J. Boyle to 293 months in federal prison, following his guilty plea in April 2013 to one count of production of child pornography, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

According to documents filed in the case, in December 2011, Anderson met Jane Doe, who was then 13-years-old.  Anderson admits that on multiple occasions between December 2 and December 5, 2011, he engaged in sexual acts with Jane Doe, and on some of those occasions, he used his cell phone to take photos of himself and Jane Doe engaging in that sexually explicit conduct.

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

The case was investigated by the DeSoto Police Department and the FBI.  Assistant U.S. Attorney Lisa J. Miller was in charge of the prosecution.

DALLAS — Kenneth Santodomingo, aka “Juan Goel Pagan” and “Juan Joel Pagan,” 22, was sentenced today by U.S. District Judge Reed C. O’Connor to 30 months in federal prison, following his guilty plea in February 2013 to an indictment charging one count of aiming a laser pointer at an aircraft.  Santodomingo was arrested on January 28, 2013, after a criminal complaint was filed for the offense, and he has been in custody since that time.  Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

“This young man’s conduct was extraordinarily dangerous and could have had disastrous consequences, which was reflected in the Court’s sentence today,” said U.S. Attorney Saldaña.  “I commend the Dallas Police Department, the FBI and the Transportation Security Administration’s Federal Air Marshal Service for their work in this investigation.”

According to documents filed in the case, at approximately 4:08 a.m. on January 28, 2013, two Dallas Police Department (DPD) officers were operating a DPD helicopter over a residential area in search of a motor vehicle burglary suspect when the cockpit was illuminated by a laser pointer approximately four times over a 10-minute period.  The intensity of the light refracting across the aircraft’s windscreen obscured the pilot’s vision and impaired his ability to view the instruments and the ground, forcing the pilot to turn the aircraft in a different direction to avoid vision damage and maintain aircraft control. 

After pinpointing the origin of the laser, the pilots observed, via the onboard camera’s thermal imaging, an individual in the backyard of a residence in the 7000 block of Lake June Road.  When patrol officers arrived at the house, Santodomingo answered the door, eventually admitted to having pointed the green laser light at the helicopter out of curiosity as to how far it would go, and handed over the laser pointer to the officers.

Assistant U.S. Attorneys Katherine Miller and J. Mark Penley prosecuted.

WICHITA FALLS, Texas — Four additional defendants, who pleaded guilty to their respective roles in a major methamphetamine distribution conspiracy that they operated in Wichita Falls, were sentenced today by U.S. District Judge Reed C. O’Connor. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

The following defendants were sentenced today:

• Kimberly Williams, 26, sentenced to 72 months in federal prison
• Sergio Arias, 27, sentenced to 170 months in federal prison
• Diana Gail Hassell, 45, sentenced to 78 months in federal prison
• Patrick Herrian, 37, sentenced to 110 months in federal prison

Williams and Arias each pleaded guilty to one count of conspiracy to possess with intent to distribute and to distribute methamphetamine. Hassell and Herrian each pleaded guilty to one count of conspiracy to possess with intent to distribute and to distribute and to possess with intent to manufacture methamphetamine.

Williams admitted that on multiple occasions between October 26, 2011, and August 23, 2012, she delivered quantities of methamphetamine, and picked up payments for methamphetamine, from customers in the Wichita Falls area. She also admits that on August 7, 2012, co-conspirator Dock Buckaloo delivered a quantity of methamphetamine to co-defendant’s Steve Ysasaga at Ysasaga’s house in Arlington, Texas. After Buckaloo delivered the methamphetamine, it was concealed in a Power Pack and placed in the rear of Ysasaga’s white Chevrolet pick-up truck. Later in the day, Ysasaga, accompanied by Williams in the front seat and another female in the back seat, drove the truck to Wichita Falls. The vehicle was stopped in Wichita Falls for a traffic violation and Texas Department of Public Safety (DPS) Troopers arrested Ysasaga on an outstanding warrant. A drug detection canine alerted on the truck and a search resulted in DPS seizing approximately 529 grams of methamphetamine that was concealed in the Power Pack.

While Troopers were searching the truck, Williams informed them that she had methamphetamine concealed in her body cavity. A later analysis revealed that she had 4.73 grams of methamphetamine concealed in her body. Troopers also found pages of notes in Williams’ purse that identified 13 individuals and amounts of money they owed Ysasaga for methamphetamine.

On August 13, 2012, in a transaction brokered by Buckaloo, Arias, a supplier, agreed to deliver two pounds of methamphetamine to Ysasaga, at his Arlington residence, for $23,000. That afternoon, Buckaloo picked up Arias who intended to accompany Buckaloo in delivering the methamphetamine to Ysasaga. However, at approximately 3:45 p.m., DPS agents initiated a traffic stop in Arlington of Buckaloo’s car. A drug detection canine alerted and approximately 894 grams of methamphetamine was found in a container that Arias had placed in the trunk of the car.

Hassell admitted that on at least 10 occasions in 2011, she allowed co-conspirators Randall Wayne Ezzell and James Allen Stafford to use her residence in Wichita Falls to manufacture methamphetamine, and in return, she received a quantity of the methamphetamine generated from the cooks. In fact, on December 5, 2011, when a state search warrant was executed at her residence, she, Ezzell and Stafford were present when law enforcement discovered a clandestine methamphetamine laboratory in operation.

Herrian admitted that on multiple occasions between July 2011 and June 19, 2012, he received quantities of methamphetamine from Ysasaga and distributed it to co-conspirators Tommy Vasquez, Corey Peeler and others in the Wichita Falls area. Herrian also admitted that on three occasions, he sold methamphetamine to an undercover law enforcement officer, and on another occasion, he sold not only methamphetamine, but three firearms and ammunition to an undercover officer.

To date, 29 of the 39 defendants charged in this conspiracy have entered guilty pleas; a total of 27 defendants have been sentenced. The case against one defendant 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, the Texas Department of Public Safety and the Wichita Falls Police Department. Assistant U.S. Attorney Mary F. Walters is in charge of the prosecution.

Defendant Worked at Churches in Levelland and Lubbock

LUBBOCK, Texas --- Trevor Jacob Fortner, 25, of Lubbock, Texas, appeared in federal court in Lubbock, Texas, this morning, before U.S. District Judge Sam R. Cummings, and pleaded guilty to a one-count indictment charging attempted transfer of obscene material to a minor, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

The statutory maximum penalty for this offense is 10 years in federal prison, a $250,000 fine and a lifetime of supervised release. However, according to plea documents filed in the case, Fortner and the government will make a non-binding recommendation to the Court that a 48-month sentence is appropriate. Today, Judge Cummings ordered a presentence investigation report with a sentencing date to be set after the completion of that report. Fortner will remain on bond pending sentencing.

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 is being investigated by the FBI, the LPD and the LPD’s Internet Crimes Against Children (ICAC) Task Force. Assistant U.S. Attorney Amanda R. Burch is in charge of the prosecution.

WICHITA FALLS, Texas — A former engineer at Sheppard Air Force Base (SAFB), Larry Thomas Ballard, 60, of Wichita Falls, Texas, was sentenced today by U.S. District Judge Reed C. O’Connor to 24 months in federal prison and ordered to pay $6,095 in restitution, following his guilty plea in October 2012 to one count of conspiracy to defraud the United States and conspiracy to unlawfully disclose sensitive source selection information. Judge O’Connor ordered that Ballard surrender to the Bureau of Prisons on August 22, 2013. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

Ballard is the fourth and final defendant to be sentenced in connection with a public corruption case at SAFB that involved the unlawful disclosure of source selection information and payment of bribes in connection with government contracts at the base.

The Lead Supervisory Engineer at SAFB and the most culpable in the scheme, John Torrance Gilmore, III, 53, also of Wichita Falls, was sentenced in May 2013 to 60 months in federal prison. He pleaded guilty to one count of conspiring to defraud the U.S. and conspiring to unlawfully disclose sensitive source information.

Two government contractors, John Carmon Freeman and Miguel Angel Hughes, were sentenced to 18 months and eight months, respectively. Each pleaded guilty to one count of conspiring to defraud the U.S. and conspiring to unlawfully obtain sensitive source information.

In addition, Judge O’Connor ordered that Gilmore and Hughes pay $6,095 restitution to the Department of Defense.

Gilmore, as the Lead Civil Engineer in the Civil Engineering Squadron’s engineering department, supervised several engineers, including Ballard. The Squadron’s mission was to maintain SAFB facilities and provide civil engineering support to the base.

Hughes, 63, of Fort Worth, Texas, owned Hughes and Guzman Construction Services, LLC, (Hughes Building Services), a roofing contractor and subcontractor with offices in Fort Worth, Dallas and Balch Springs, Texas. Freeman, 50, of Vernon, Texas, owned Freeman Construction, a road-building and paving contractor, with offices in Wichita Falls and Vernon.

The four defendants conspired together to impair and obstruct the government’s ability to have a competitive and unbiased selection of contractors — depriving the government of its right to exclusive use and control over sensitive source selection information, to include contractor bid information, government pricing and cost estimates and contractor proposal information. The defendants conspired together to knowingly disclose and obtain sensitive source selection information related to specifications on several contracts, including those for roof and pothole repairs and the liquid oxygen maintenance facility.

According to plea documents filed in the case, the defendants conspired together and with others during the period from at least the mid 1990's through 2009, to defraud the 82nd Contracting Squadron and the Department of the Air Force by depriving the U.S. of the lawful right to exclusive use and control over sensitive source selection information, such as contractor bid information, government pricing and cost estimates, and contractor proposal information, on several contracts. They also conspired together and with others to disclose or obtain sensitive source selection information on several contracts.

Gilmore and Ballard provided sensitive source information to their friends, Freeman and Hughes, to give them a competitive advantage or financial benefit in connection with several government contracts. Over several years, Freeman and Hughes gave Gilmore and Ballard personal gifts and benefits in return for their preferential treatment in connection with several government contracts.

In the mid to late 1990's, Freeman paid large sums of cash to Gilmore. Gilmore supervised several government inspectors who inspected Freeman’s work and Freeman felt it would be good to keep Gilmore happy so that he would continue to treat Freeman favorably. On at least one occasion, Freeman gave $10,000 in cash to Gilmore, expecting Gilmore to accept and approve Freeman’s work on future government contracts, even if there were discrepancies and deficiencies in Freeman Construction’s contract work. In addition, to curry favor with Gilmore, Hughes paid Gilmore’s travel expenses and took him to several gun shows.

When Gilmore became aware of this criminal investigation, he told Freeman to lie about his cash payments to him. After initially lying about them to investigators, Freeman later admitted that he had paid cash bribes to Gilmore.

The investigation was conducted by the Defense Criminal Investigative Service and the Air Force Office of Special Investigations.

LUBBOCK, Texas — John Brandon Rice, 25, most recently a resident of Abilene, Texas, was sentenced this morning by U.S. District Judge Sam R. Cummings to 37 months in federal prison, following his guilty plea in April 2013 to one count of failing to register as a sex offender, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

According to documents filed in the case, in January 2009, Rice was sentenced in California for the felony sex offense of unlawful sexual intercourse and was sentenced to a three-year term of probation with a condition that he must serve 180 days in jail. In May 2010, the probated sentence was terminated and a state prison term of 32 months was imposed. As a result of this conviction, Rice was required under California law to register as a sex offender for life.

In June 2012, Rice began residing in Abilene and working as a landscaper and for a roofing business. Rice admits that he knowingly failed to register, and update his registration as a sex offender because he had an outstanding parole warrant form California and he did not want them to know where he was. Under the Sex Offender Registration and Notification Act (SORNA), persons who are required to register as sex offenders are required to register within three days of moving from one state to another.

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

The investigation was conducted by the U.S. Marshals Service. Assistant U.S. Attorney Steven M. Sucsy prosecuted.

DALLAS — Joshua David Watson, 37, of Rowlett, Texas, was sentenced today by U.S. District Judge Jane J. Boyle to 250 months in federal prison, following his guilty plea in November 2012 to an indictment charging two counts of attempted enticement of a minor, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

According to documents filed in the case, from approximately July 25 to August 18, 2012, Watson used the Internet and a cell phone to persuade, induce and entice a purported parent of two minor children to allow him to engage in sexual activity with the children. Not only did Watson engage in a number of sexually explicit conversations with the purported parent of the children about engaging in sexual activity with them, but he also made plans to meet the purported parent and children and engage in sexual activity with the children. In fact, he arrived at a pre-arranged location on August 18, 2012, where he was arrested.

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. Assistant U.S. Attorney Lisa J. Miller prosecuted.

DALLAS — Jeremy Blackburn, 33, was sentenced today by U.S. District Judge Jane J. Boyle to 188 months in federal prison, following his guilty plea to one count of transporting and shipping child pornography, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Blackburn has been in custody since he entered that guilty plea in March 2013.

According to documents filed in the case, an undercover operation to identify persons who participate in the distribution of child pornography and the sexual exploitation of children through the use of peer-to-peer file sharing networks resulted in the identification of Blackburn. A search warrant was executed at his residence in Mesquite, Texas, in July 2012, and computer equipment was seized. There were more than 600 images and videos of child pornography available to share on his file-sharing program.

Blackburn admitted than in February 2012, he used the Internet and file-sharing software to share and transmit image and video files depicting minors engaged in sexually explicit conduct. He admitted that he preferred younger girls but not babies, and he admitted to downloading child pornography just 30 minutes prior to the execution of the search warrant. He also admitted that he sought, received and possessed images and videos that included bondage and other sadistic acts involving minors.

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

The investigation was conducted by the Mesquite Police Department and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Camille Sparks was in charge of the prosecution.

Large Amounts of Cocaine and Methamphetamine Seized, Along With Luxury Vehicles and More Than $350,000 in Cash

DALLAS — Seven Dallas residents were arrested yesterday in an Organized Crime Drug Enforcement Task Force (OCDETF) operation conducted by special agents with the FBI and officers with the Dallas Police Department on several federal drug-trafficking complaints. During this phase of the operation, three pounds of methamphetamine, more than $30,000 in United States currency and several firearms were seized.

The first phase of this OCDETF operation was executed on July 2, 2013, when law enforcement seized approximately 14 kilograms of cocaine, one and one-half pounds of methamphetamine (ICE), four luxury vehicles and more than $315,000 in United States currency. Four defendants from Dallas were arrested that day and charged by federal complaint with conspiring to possess with intent to distribute five kilograms or more of cocaine.

Sarah R. Saldaña, U.S. Attorney for the Northern District of Texas, and Diego Rodriguez, Special Agent in Charge for the FBI Dallas Division, announced the results of the operation today.

The following seven defendants were arrested yesterday and will appear this afternoon before U.S. Magistrate Judge David L. Horan:

• Reynaldo Macedo-Flores, 35
• Calletano Flores-Hernandez, a/k/a Rolando Nunez-Hernandez, 47
• Austreberta Macedo-Flores, 53
• Rigoberto Aguirre, 35
• Jose Eduardo Madrigal-Moreno, 20
• Diego Hernandez-Valencia, 22
• Rupertro Renteria-Ramos, 27

The following four defendants were arrested on July 2, 2013, and have made their initial appearances in federal court. All were ordered detained.

• Victor Guillen, 21
• Ezekiel Maldonado, 34
• Roger Molina, 25
• Juan Perez Bernal, 36

The case involves undercover purchases, wiretaps and search warrants. In total, 14 kilograms of cocaine, four and one-half pounds of methamphetamine (ICE), five firearms, four luxury vehicles and $351,010 in cash have been seized in the operation.

A federal criminal complaint is a written statement of the essential facts of the offense charged, and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The U.S. Attorney’s office has 30 days to present the matter to a grand jury for indictment. The statutory maximum penalties for the charged offenses range from 40 years to life in federal prison and millions of dollars in fines.

The FBI and the Dallas Police Department are leading this OCDETF investigation. Assistant U.S. Attorney Jason Schall is in charge of the prosecution.

DALLAS --- Quincy Lamar Poole, 24, of Lancaster, Texas, has been arrested on a federal criminal complaint charging distribution of child pornography. Poole made his initial appearance this afternoon in federal court in Dallas and was detained pending a hearing set for Tuesday, July 23, 2013. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

According to the complaint filed in the matter, law enforcement executed a federal search warrant at Poole’s residence in Lancaster on July 16, 2013; Poole and others were home at the time. Pursuant to the warrant, law enforcement seized computers and other computer media. Poole advised that he had traded child pornography with others he met on Internet websites. He also advised that during his 10-year obsession with child pornography, he had downloaded thousands of images of child pornography.

A federal complaint is a written statement of the essential facts of the offenses charged and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The maximum statutory penalty for the offense as charged is not less than five or more than 20 years in federal prison, a $250,000 fine and a lifetime of supervised release.

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

The matter is being investigated by the FBI. Assistant U.S. Attorney Camille Sparks is prosecuting.

Larry Lake Was Part-Owner of Grapevine Drug Mart - Son Travis Lake Managed the Business

FORT WORTH, Texas — Larry Lake and his son, Travis Lake, were sentenced today in U.S. District Court in Fort Worth, Texas, by U.S. District Judge John McBryde, to 168 months and 13 months in federal prison, respectively, following their convictions earlier this year on tax and tax-related charges. In addition, Judge McBryde ordered that Larry Lake pay a $550,000 fine as well as any taxes, interest and penalties owed, which will equal approximately $25 million. Judge McBryde ordered that Travis Lake pay a $30,000 fine; he has already paid $26,816 in restitution prior to sentencing. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

Larry Lake was convicted at trial in February 2013 on one count of concealment of assets (bankruptcy fraud) and three counts of tax evasion. He was remanded into custody following the conviction. Travis Lake pleaded guilty in February 2013 to an indictment charging three counts of fraud and false statements in connection with tax returns he filed for tax years 2006, 2007 and 2008. He was remanded into custody after today’s sentencing hearing.

According to the public court record, Larry Lake is a resident of Colleyville, Texas, and owns and operates several businesses including VIP Finance of Texas, an auto title loan business with branches throughout the Dallas-Fort Worth area; Cash Auto Sales, which handles the auto club memberships for VIP Finance; and is a part owner of Grapevine Drug Mart, a family-owned and operated pharmacy in Grapevine, Texas.

According to the factual resume filed in his case, Travis Lake manages Grapevine Drug Mart, and according to an order setting conditions for his release, Travis Lake is also a resident of Colleyville.

According to evidence presented at Larry Lake’s trial, the day before he filed for bankruptcy in November 2004, Larry Lake knowingly and fraudulently transferred and concealed more than $3 million held in an E*TRADE account and a Compass Bank account. The funds were subsequently transferred by Larry Lake through a series of bank deposits, wire transfers and cashier’s checks. In addition, Larry Lake utilized a “shell” company to assist in concealing the assets.

Additionally, according to evidence presented at trial, Larry Lake devised a scheme to evade the assessment of his personal income taxes by under-reporting income on his and his spouse’s joint tax returns for the tax years 2006 through 2008. The unreported income was derived from his businesses, VIP Finance and Grapevine Drug Mart.

Further evidence presented by the government at trial showed that from August 2006 through November 2009, Larry Lake and his spouse agreed to structure more than 1,100 currency deposits, into at least 13 different bank accounts, knowing that structuring was illegal. These accounts were spread among several financial institutions, and the total amount structured during this time period was in excess of $9.3 million. Larry Lake and his spouse created at least two “shell” companies, which were used to open some of the 13 bank accounts used in the structuring scheme.

Larry Lake, according to evidence presented at trial, failed to disclose the structured funds, and the existence of the accounts containing the structured funds, to his income tax return preparer. In addition, Larry Lake failed to report income he received from Grapevine Drug Mart, having told his return preparer that he sold the business during the 2003 calendar year. By willfully withholding this information from his return preparer, the IRS suffered a total tax loss of $4,838,032.

According to the factual resume filed in Travis Lake’s case, from 2006 through 2008, he received quarterly and weekly payments of income drawn on Grapevine Drug Mart’s business bank accounts. The quarterly payments were generally received three to five times per year and varied in amounts ranging from $25,000 to $100,000. Each quarterly payment was made payable to Certified Tech Services, a dba that Travis Lake established, and deposited into Certified Tech Services’ business bank account. The weekly payments, in the form of checks, were much smaller and were made payable to Travis Lake or his wife, and deposited into personal accounts Travis Lake controlled. The factual resume further states that Travis Lake timely filed his federal income tax returns for 2006, 2007 and 2008, but willfully omitted income of approximately $77,070 for 2006; $82,540 for 2007; and $54,000 for 2008, all of which he received from Grapevine Drug Mart.

In related cases, two pharmacists at Grapevine Drug Mart, have also pleaded guilty to tax evasion, according to factual resumes filed in those cases. Norvell Moss admitted that he failed to report approximately $194,150 in income he received from Grapevine Drug Mart for tax year 2008, and as a result of not reporting all of his income, Norvell Moss had an additional tax due and owing of $58,233 for that year. He was sentenced in May 2013 to 18 months in federal prison and ordered to pay $8,277 in restitution as well as a $30,000 fine.

Another pharmacist, Joseph Moss, admitted that he failed to report approximately $159,450 in income he received from Grapevine Drug Mart for tax year 2008, and as a result of not reporting all of his income, he had an additional tax due and owing of $58,554 for that year. He was sentenced last month to 12 months and one day in federal prison and ordered to pay $51,150 in restitution and a $3,000 fine.

The cases were investigated by Internal Revenue Service Criminal Investigation. Assistant U.S. Attorney Brian Poe and Tax Division Trial Attorney Robert A. Kemins were in charge of the prosecutions.

Defendant Used Elderly as Straw Buyers

DALLAS — Following a three-day trial before U.S. District Judge Reed C. O’Connor, a federal jury in Dallas deliberated just one hour before convicting Vincent Bazemore, 39, formerly of Aubrey, Texas, on all counts of an indictment charging four counts of mail fraud related to a scheme he ran to defraud various life insurance companies. Today’s announcement was made by U.S. Attorney Sarah R. Saldana of the Northern District of Texas.

Bazemore is currently in federal custody, serving a five-year sentence on a federal securities fraud conviction in the district in 2009. He faces a maximum statutory penalty of 20 years in federal prison, a $250,000 fine and restitution on each of the four counts of conviction. In addition, there is a penalty enhancement as Bazemore was found to have committed these offenses while he was pre-trial release on the securities fraud case, and under this enhancement, Bazemore is subject to an additional 10 years imprisonment to run consecutive to any sentence that he may receive on any of the mail fraud counts. Sentencing is set for December 12, 2013, before Judge O’Connor.

The government presented evidence at trial that between October 2007 and April 2009, Bazemore, an insurance agent, engaged in a scheme to obtain substantial commissions by inducing life insurance companies to issue policies on applications of individuals who appeared to be wealthy and seeking insurance for estate planning purposes, when in fact, the applicants were of modest financial means, and the policies were intended to be transferred to investors.

Further evidence presented in court showed that Bazemore solicited elderly individuals to apply for policies by representing that the life insurance was an investment with no financial cost or exposure and would result in a sizable monetary benefit to the individual’s heirs. Bazemore prepared the applications and related documents, on behalf of the applicants that contained forged signatures and falsified financial information to induce the life insurance companies into issuing the policies. Bazemore also submitted the false and fraudulent applications and related documents to financial institutions to obtain premium financing on the policies. In fact, the applicants were of modest financial means and that the policies were obtained for the purpose of being transferred to investors. Bazemore had agreements with insurance companies and managing agents which provided that he would receive, for each policy issued on an application he submitted, a commission of 95 to 105 percent of the first year’s premium paid on the policy.

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 http://www.stopfraud.gov/.

The case is being investigated by the FBI and prosecuted by Assistant U.S. Attorneys Christopher Stokes and P.J. Meitl.

LUBBOCK, Texas — Rodolfo Reyes Mata, aka Rudy Mata, 40, of San Antonio, Texas, appeared this morning in federal court before U.S. District Judge Sam R. Cummings and pleaded guilty to an Information charging one count of mail fraud and aiding abetting. Mata, who will remain on bond, faces a maximum statutory penalty of 20 years in federal prison, a $250,000 fine and restitution. Judge Cummings ordered a presentence investigative report with a sentencing date to be set upon the completion of that report. 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 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, according to plea papers filed in Mata’s case, Mata and his friend, Robert Gregory Bruce, the former Vice President of University Medical Center, 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 pleaded guilty last month to a similar 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 are being investigated by the FBI. Assistant U.S. Attorney Amanda R. Burch is in charge of the prosecutions.

LUBBOCK, Texas — Njeazeh Roderigue Ambeabet, 24, of Lubbock, Texas, was sentenced today by U.S. District Judge Sam R. Cummings to 210 months in federal prison, to be followed by 20 years of supervised release, following his guilty plea in April 2013 to one count of production of child pornography. Ambeabet has been in custody since his arrest in February 2013. 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, last year, Ambeabet met an 11-year-old girl online and engaged in a texting relationship with her, frequently asking her to engage in sexual relations with him. He admitted that he was well aware of her age, and that he received sexually explicit images of her that were taken with her cell phone at his request.

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.”

LUBBOCK, Texas — Christopher Aubrey Harlan, 27, formerly of Big Spring, Texas, was sentenced today by U.S. District Judge Sam R. Cummings to 15 years in federal prison, to be followed by eight years of supervised release, following his guilty plea in March 2013 to one count of receiving child pornography. Judge Cummings ordered that Harlan surrender to the Bureau of Prisons on August 16, 2013. 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, Harlan used his computer, as well as for a brief time, his roommate’s computer, to access child pornography on various websites. He used those computers, as well as his cellphone, to send and receive numerous images of child pornography.

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

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

FORT WORTH, Texas — Two men, who pleaded guilty earlier this year to wire fraud charges stemming from their use of Craigslist to obtain victims’ credit card information, have been sentenced by U.S. District Judge John McBryde. James Lee Williams, II, 40, of Dallas, was sentenced on April 26, 2013, to 120 months in federal prison and ordered to pay more than $77,000 in restitution. His brother-in law and co-defendant Anthony Troy Johnson, 44, of Karnack, Texas, was sentenced on July 5, 2013, to 48 months in federal prison and ordered to pay more than $66,000 in restitution. Williams has been in custody since his arrest; Johnson was ordered to surrender to the Bureau of Prisons by July 26, 2013. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

Williams and Johnson admitted running a scheme in which they advertised on Craigslist tickets for sale to events such as football games or Texas Rangers baseball games. When a customer called to buy tickets, they obtained the credit card information and informed the customer that their tickets would be mailed or could be picked up at the event. Instead of purchasing tickets to the designated event, however, Williams and Johnson used the victims’ credit card information to purchase airline tickets, tickets to other sporting events, concerts and attractions such as Six Flags Over Texas amusement park, and then they sold the fraudulently obtained tickets to other consumers.

Williams was arrested by officers with the Arlington Police Department in August 2012 after a state search warrant was executed in his motel room in Arlington. Among some of the items seized were documents containing names and numbers consistent with personal identifying information and credit card numbers, written ledgers for various sporting/entertainment events, cell phones and tickets. Some of the paperwork had been stuffed into the toilet, clogging it and causing it to overflow, and a laptop computer had been thrown out of the window.

The investigation was conducted by the Arlington Police Department and the U.S. Postal Inspection Service. Assistant U.S. Attorney Chris Wolfe prosecuted.

Defendant Conspired With Former Vice-President of Pavillion Bank

DALLAS — Jason Dvorin, 45, of Southlake, Texas, was sentenced this morning by U.S. District Judge Reed C. O’Connor to 24 months in federal prison and ordered to pay $111,639 in restitution, following his conviction at trial in February 2013 on one count of conspiracy to commit bank fraud. Judge O’Connor ordered that Dvorin surrender to the Bureau of Prisons on September 12, 2013. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

Dvorin entered into an agreement with Chris Derrington, the vice president of Pavillion Bank, located on West Campbell Road in Richardson, Texas, to deposit worthless checks in return for immediate access to the bank’s funds. Dvorin would bring in worthless credit card checks, or checks drawn on a closed account, and present them to Derrington for deposit. Knowing the checks were worthless, Derrington gave Dvorin immediate access to the bank’s funds. As soon as one worthless check was returned, Dvorin would deposit another worthless check. This pattern continued over the course of five years and resulted in 224 fraudulent deposits by Dvorin and the Derrington. By the time the scheme was uncovered, Pavillion bank sustained a loss in excess of $300,000.

Derrington, 61, of Dallas, was charged in a separate case with the same offense and pleaded guilty to that charge in May 2012. He was sentenced in March 2013 to a five-year term of probation and ordered to pay more than $778,000 in restitution.

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 http://www.stopfraud.gov/.

The cases were investigated by the FBI and the FDIC Office of Inspector General. Assistant U.S. Attorneys Mindy Sauter and Michael Elliott prosecuted.

DALLAS — Rodney Allen Thompson, 44, of McKinney, Texas, was sentenced today by U.S. District Judge Jane J. Boyle to 10 years in federal prison, following his guilty plea in April 2013 to one count of transferring obscene material to a minor. He has been in custody since his arrest in December 2012. 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, Thompson admits that in December 2012, he communicated with “Jane Doe,” an individual he believed to be a 14-year-old girl, whom he friended via Yahoo! Messenger. Jane Doe was in reality an officer with the Garland Police Department, acting in an undercover capacity. Thompson admitted that he communicated with Jane Doe in a sexually explicit manner, indicating that the wanted to engage in sexual activity with her. Using his computer and cell phone, Thompson ultimately persuaded, or attempted to persuade, Jane Doe to meet him at a mall in Garland to engage in illegal sexual activity with him. He also admitted that he sent Jane Doe, via webcam, an obscene video of himself engaging in sexually explicit conduct. On December 13, 2012, Thompson drove to meet Jane Doe at the mall, as they had arranged, and was arrested.

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

The investigation was conducted by the Garland Police Department. Assistant U.S. Attorney Camille Sparks prosecuted.

LUBBOCK, Texas — A federal grand jury has returned a seven-count indictment charging Jacob Aniceto Jose Villarreal, 29, of Brownwood, Texas, with various felony child pornography offenses. Specifically, the indictment charges Villarreal with one count of production of child pornography, four counts of receipt of child pornography and two counts of possession of child pornography. Villarreal has been in federal custody since his arrest on June 25, 2013, on related charges outlined in a criminal complaint. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

The indictment alleges that in March 2013, Villarreal induced a minor male to engage in sexually explicit conduct while he recorded the conduct. The indictment further alleges that on four occasions, from October 2012 through May 2013, Villarreal received visual depictions of minors engaging in sexually explicit conduct. The indictment also charges Villarreal with possessing images of child pornography on two occasions from April 2010 to June 25, 2013.

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

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, the production count carries a maximum statutory penalty of not less than 15 years or more than 30 years in federal prison; each of the receipt counts carries a maximum statutory penalty of not less than five or more than 20 years in federal prison and each of the possession counts carries a maximum statutory penalty of 20 years in federal prison. In addition, upon conviction, each count carries a maximum statutory fine of $250,000 and up to a lifetime of supervised release.

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

The investigation was conducted by ICE HSI, the U.S. Marshals Service and the Brown County Sheriff’s Office. Assistant U.S. Attorney Steven M. Sucsy is in charge of the prosecution.

DALLAS — Duncan MacDonald III, 50, of Dallas, appeared yesterday in federal court and pleaded guilty to a felony Information charging conspiracy to commit wire fraud. In a related case, last week, Gloria Ann Solomon, 71, also of Dallas, pleaded guilty to an Information charging the same offense. Each defendant faces a maximum statutory penalty of five years in federal prison, a fine not to exceed $250,000, or twice any pecuniary gain to the defendant or loss to the victim(s), and restitution. Both MacDonald and Solomon will remain on bond pending sentencing, which is set for October 3, 2013, before U.S. District Judge Jane J. Boyle. 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, from at least 2006 and continuing into at least September 2012, MacDonald was President and Director of Global Corporate Alliance, Inc. (GCA). MacDonald operated GCA out of offices in Addison and Euless, Texas. He hired co-conspirator Solomon in January 2007 as GCA’s Chief Administrative Officer.

GCA managed the North American Consumer Alliance (NACA), a not-for-profit member association that created and packaged insured benefit association healthcare programs and policies administered to corporations, organizations and other entities. GCA sold the healthcare policies throughout the U.S. and maintained a conservative management fee. It collected fees called “overages” that were in excess of the conservative management fee.

In 2008, MacDonald created GCA’s “Overage Program” to sell interests in the overages through “Overage Purchase Agreements.” An investor’s potential return was directly related to the number of people who enrolled in a healthcare plan by purchasing a healthcare policy from CGA. GCA would pay the investor for each new healthcare plan enrollee. MacDonald installed Solomon as the program’s manager and she worked with MacDonald in conducting GCA’s activities regarding the Overage Program.

MacDonald initially planned to have only a single person invest in the Overage Program, but when one couldn’t be found, GCA fractionalized the program to make it available for multiple investors to provide smaller amounts of funds. GCA contracted with a sales agent to solicit individuals to invest, and the sales agent used information regarding the Overage Program that was provided by MacDonald and Solomon. That information included the number of current and projected healthcare plan enrollees that would drive investors’ potential returns.

MacDonald admits that he significantly inflated the current and projected enrollment figures by the thousands in an attempt to sell the Overage Program to investors. He and Solomon knew that the figures were false and that the sales agent would relay the figures to investors he was soliciting.

MacDonald also personally acquired investors for the Overage Program. In fact, MacDonald and Solomon provided false information to persuade one particular investor to invest $2 million in the Overage Program. They then used this money to make payments to existing program investors.

When GCA had difficulty making timely payments to Overage Program investors, MacDonald authorized Solomon to respond to investor complaints and inquiries with excuses for the delayed payments. Solomon sent these emails from accounts that were created for fictitious GCA employees.

The Overage Program did not generate any income or revenue. Less than 50 people actually bought any healthcare policies during the lifetime of the program. MacDonald and Solomon admit that any payments made to existing investors came from money that GCA received from new investors in the program.

In a parallel action, both defendants are also charged by the U.S. Securities and Exchange Commission (SEC) with securities fraud and conducting an unregistered securities offering while acting as unregistered broker-dealers. That complaint alleges that GCA had raised nearly $10 million from investors and returned about $2 million to investors in the form of Ponzi payments.

This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, which was established in 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 is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 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, please visit http://www.stopfraud.gov/.

The case is being investigated by the FBI. The U.S. Attorney’s Office also appreciates the assistance of the SEC’s Fort Worth Regional Office. Special Assistant U.S. Attorney Ruben Martinez, Jr. is in charge of the prosecution.

LUBBOCK, Texas — Joshua I. Suter, 24, of San Angelo, Texas, appeared in federal court in Lubbock on Friday, before U.S. District Judge Sam R. Cummings, and pleaded guilty to one count of possession of child pornography. Suter, who remains on bond, faces a maximum statutory penalty of 10 years in federal prison, a $250,000 fine and a lifetime of supervised release. Judge Cummings ordered a presentence investigation report with a sentencing date to be set after the completion of that report. Today’s announcement is made 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 is being investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Steven M. Sucsy is in charge of the prosecution.

Agrees to Pay More Than $200,000 in Restitution

LUBBOCK, Texas — Randy Lynn White appeared in federal court in Lubbock, Texas, today, before U.S. District Judge Sam R. Cummings, and pleaded guilty to an Information charging one count of tax evasion, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. He faces a maximum statutory penalty of five years in federal prison and a $250,000 fine. According to the terms of the plea agreement filed in the case, White agrees to pay the amount of the tax loss, $211,165, in restitution. He will remain on personal recognizance bond; a sentencing date was not set.

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 U.S. White agrees that as a result of this criminal conduct, the tax loss to the U.S. for those years is $211,165.

White, according to the factual resume, 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 is being investigated by Internal Revenue Service Criminal Investigation. Assistant U.S. Attorney Paulina Jacobo is in charge of the prosecution.

LUBBOCK, Texas — Ernesto Garcia, 59, of Lubbock, Texas, appeared this morning before U.S. District Judge Sam R. Cummings and pleaded guilty to one count of perjury, stemming from his sworn testimony in a detention hearing held in May 2012 in federal court in Lubbock, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Garcia faces a maximum statutory penalty of five years in federal prison and a $250,000 fine. Judge Cummings ordered a presentencing investigation report with a sentencing date to be set after the completion of that report. Garcia has been in federal custody since his arrest in late May 2012.

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 is being investigated by Internal Revenue Service Criminal Investigation. Assistant U.S. Attorney Paulina Jacobo is in charge of the prosecution.

Defendant Sold Used Firearms for Resale from His Print Screen Shop in Garland, Texas

DALLAS — Jackie Don Burke, 68, of Rowlett, Texas, was sentenced this morning by U.S. District Judge Barbara M. G. Lynn to one year and one day in federal prison, following his conviction at trial in February 2013 for engaging in the business of firearms without a license. Burke was ordered to surrender to the Bureau of Prisons on July 30, 2013. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

The government presented evidence at trial that Burke repeatedly bought used firearms for resale, a business that he conducted out of his print screening shop in Garland, Texas. According to Burke’s own records, not particularly well kept, he sold at least 135 firearms in a 14-month period.

In one instance, Burke sold a pistol to an undercover agent with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) without even asking if he was a prohibited person, i.e., a convicted felon. Burke only asked the agent if he had a Texas driver’s license, which Burke only glanced at. Burke had a sign outside his print screening business that declared that he was in the business of selling guns and maintained that he was simply selling firearms from his personal collection, which is lawful. Burke testified at trial and told the jury that he was too old to go to jail.

The case was investigated by ATF; Assistant U.S. Attorneys Taly Haffar and Katherine Pfeifle prosecuted.

DALLAS — Mohamdad Jabal was sentenced yesterday afternoon by U.S. District Judge Ed Kinkeade to six months in federal prison and six months home confinement, following his guilty plea in March 2013 to one count of structuring. According to the plea agreement filed in the case, Jabal has made full restitution, in the amount of $403,736, to the victims in the case prior to entering into the plea agreement with the government. 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, Jabal owns two car washes in the Dallas-Fort Worth area under the name of Avalanche Wash, Inc., and currently has a third one under construction. He maintains two bank accounts related to his car wash business. Between March 15 and April 30, 2012, Jabal made 19 cash deposits for a total of $182,050 into his Avalanche Wash Inc. Interim Construction Account at First National Bank of Burleson. Each of these deposits ranged from $9,000 to $9,800 and many of the deposits were on consecutive days. Jabal admitted that he was aware of the $10,000 reporting requirement and purposefully kept his cash deposits below the requirement so he wouldn’t “raise a red flag.”

The investigation was conducted by Internal Revenue Service Criminal Investigation and prosecuted by Assistant U.S. Attorney Brian Poe.

FORT WORTH, Texas — Three North Texans, who were convicted for their role in a drug trafficking operation that mailed large quantities of marijuana from the Dallas/Fort Worth (DFW) area to St. Croix, U.S. Virgin Islands, have been sentenced, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

This week, April Michelle Greene, 37, of Fort Worth, was sentenced to 78 months in federal prison following her guilty plea in November 2012 to one count of conspiracy to possess with intent to distribute a controlled substance.

Earlier this month, Neil Nick Rene, 37, of Duncanville, was sentenced to 151 months in federal prison following his guilty plea in October 2012 to one count of conspiracy to possess with intent to distribute a controlled substance and one count of conspiracy to launder monetary instruments. Defendant Carl Gayheart Schou, 48, pleaded guilty in November to the same offenses and is scheduled to be sentenced in October 2013.

Kareem Ambrose, 33, was sentenced on May 1, 2013, to 12 months in federal prison and a $1,000 fine following his guilty plea the previous month to one count of possession of a controlled substance.

According to documents filed in the case, over the course of the conspiracy from December 2009 until March 2012, Greene, Rene and Schou were involved in the sale and shipment of marijuana from the DFW area to buyers located in St Croix, in the U.S. Virgin Islands. In fact, Ambrose was stopped by law enforcement in St. Croix, in a vehicle that contained a package with 2.2 pounds of marijuana that had been mailed to him from North Texas.

Greene, Rene and Schou would mail parcels of marijuana, each weighing approximately two – five kilograms, from multiple post offices in DFW to buyers in St. Croix. Fictitious return addresses were used on the drug parcels to avoid detection. In return for the drug parcels, the buyers would mail the defendants parcels containing proceeds of the sales of the trafficked marijuana, most commonly in the form of U.S. Postal money orders. At times, in order to disguise the source of the proceeds of the marijuana trafficking, Rene and Schou would use false information in the return addresses and would mail the proceeds to third parties. Schou or Greene would then deposit the money orders into their personal bank accounts, or cash them at their member bank, a check cashing facility or a U.S. Postal facility.

This case was investigated by the U.S. Postal Inspection Service, Drug Enforcement Administration, U.S. Customs and Border Protection, Internal Revenue Service - Criminal Investigation and the U.S. Virgin Islands Police Department. Assistant U.S. Attorneys Joshua T. Burgess and John de la Garza are prosecuting.

Kingsway Medical Systems, Inc. was Located in Desoto and Richardson, Texas

DALLAS — Philip Odoemena, 60, the former owner/operator of Kingsway Medical Systems, Inc., (Kingsway) was sentenced today by U.S. District Judge Barbara M. G. Lynn to 35 months in federal prison and ordered to pay $483,995 in restitution, following his guilty plea in September 2012 to one count of health care fraud. Odoemena has been in custody since his arrest in early May 2012. 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, from February 2005 to May 2012, Odoemena owned and operated Kingsway, a durable medical equipment (DME) company that was first located in Desoto, Texas, and then in Richardson, Texas. He was approved by both Medicare and Texas Medicaid to provide durable medical equipment, including wheelchairs and accessories, adult incontinence supplies and enteral nutrition supplies (tube feeding) to Medicare beneficiaries and Medicaid clients.

Odoemena admitted that from May 2007 through March 2012, he ran a scheme to defraud Medicare and Medicaid by submitting fraudulent claims that falsely represented that legitimate and qualifying supplies were provided and that falsely represented the medical necessity of the supplies. In one instance, for example, he billed Medicaid $870 for tube feeding supplies for a Medicaid client, when, in fact, he merely provided that client an oral nutritional supplement. Medicaid paid Kingsway $826 for that claim — funds that Odoemena used for his own personal benefit.

The case was investigated by the FBI, the U.S. Department of Health and Human Services - Office of Inspector General and the Texas Attorney General’s Medicaid Fraud Control Unit. To learn more health care fraud, please visit: http://stopmedicarefraud.gov.

The case was prosecuted by Special Assistant U.S. Attorney Brian W. Portugal and Assistant U.S. Attorney Katherine E. Pfeifle.

DALLAS — Charles Anthony Jones, 48, of Dallas, was sentenced today by U.S. District Judge Barbara M. G. Lynn to 37 months in federal prison and ordered to pay $633,019 in restitution to Pfizer, Bayer and Eli Lilly for trafficking in counterfeit pharmaceutical drugs. Specifically, Jones pleaded guilty in November 2012 to one count of aiding and abetting the trafficking of counterfeit goods. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

According to plea papers filed in the case, on March 2, 2012, an undercover police officer texted Jones and asked Jones if he could meet him the following week in the neighborhood of a hotel in Irving, Texas. (Jones had previously sold the undercover officer pharmaceutical drugs to treat erectile dysfunction.) On March 6, 2012, the officer texted Jones and arranged a meeting to purchase a 30-count bottle of “Cialis” the following day for $150. The next day, Jones delivered a bottle marked “Cialis” that contained 30 20mg tablets to the undercover officer in exchange for $150. The bottle was marked with what appeared to be the genuine Cialis trademark and the bottle was clearly marked “PRESCRIPTION ONLY MEDICINE.”

Jones has been in custody since his arrest on August 22, 2012, on an indictment alleging that he and other unnamed individuals imported pharmaceutical drug products and packaging that bore the trademarks of certain prescription pharmaceuticals used to treat erectile dysfunction without the drug manufacturer’s authorization, and then resold the drugs to the public using the Internet to facilitate the sales. Jones was never licensed by the FDA or the Texas Health and Human Services Commission to distribute pharmaceutical drugs.

The investigation was conducted by the Food and Drug Administration (FDA) Office of Criminal Investigations (FDA-OCI) and the Irving Police Department. Assistant U.S. Attorney Jason Schall was in charge of the prosecution.

FORT WORTH, Texas — Robert A. Steffens, 60, of Dallas, was sentenced today by U.S. District Judge Terry R. Means to 60 months in federal prison, following his guilty plea in November 2012 to one count of possession of child pornography. Judge Means ordered that Steffens surrender to the Bureau of Prisons on July 22, 2013. 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, last summer, a laptop computer containing child pornography was turned in to the Fort Worth Police Department. It was determined that the laptop belonged to Steffens. Pursuant to a search warrant, the contents of the laptop were searched and child pornography was found.

In late August 2012, after being contacted by law enforcement, Steffens met with an officer at the Fort Worth Police Department and brought another laptop computer and external drive with him to the meeting. After obtaining a state search warrant for both, a forensic examination revealed both items contained child pornography. Steffens admitted that he had sought out child pornography on the Internet using search terms. He also admitted that he had deleted the images on the laptop and the external drive before bringing them in to the officer.

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 Fort Worth Police Department, with assistance from U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).

Assistant U.S. Attorney Aisha Saleem prosecuted.

FORT WORTH, Texas — Joseph Moss has been sentenced to one year and one day in federal prison and ordered to pay a $3000 fine and $51,150 in restitution following his guilty plea in January 2013 to one count of income tax evasion, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

Moss, according to the factual resume filed in the case, is a licensed pharmacist who worked as a pharmacist for Grapevine Drug Mart, a family-owned and operated pharmacy in Grapevine, Texas. He received quarterly and weekly payments of income drawn on Grapevine Drug Mart’s business bank accounts. The quarterly payments were generally received three to five times per year and varied in amounts ranging from $20,000 to $100,000. Each of the quarterly payments were made payable to Moss enterprises, a dba Moss established, and deposited into Moss Enterprises’ business bank account. The weekly payments were much smaller in amount and were made payable to Moss via check. From October 2006 through December 2008, Moss cashed these weekly checks made payable to himself and thus not reported on his income tax return.

The factual resume further states that in October 2009, Moss timely filed his federal income tax return but attempted to evade the amount of federal income tax he owed by failing to report approximately $159,450 that he had received from Grapevine Drug Mart for the 2008 tax year. As a result, Moss had an additional tax due and owing of $58,554 for the 2008 tax year.

Joseph Moss’s father, Norvell Moss, was sentenced last month to 18 months in federal prison for the same offense. He was ordered to pay a $30,000 fine and an additional $8,277 in restitution to go along with the more than $94,000 he had paid prior to sentencing.

According to the public court record, two other defendants affiliated with Grapevine Drug Mart were recently convicted in the Northern District for tax-related felony offenses. Larry Lake, also a Colleyville resident and a part-owner of Grapevine Drug Mart, was convicted by a federal jury in Fort Worth in February 2013 on concealment of assets (bankruptcy fraud) and three counts of tax evasion. His son, Travis Lake, who managed Grapevine Drug Mart, pleaded guilty that same month to an indictment charging three counts of fraud and false statements in connection with tax returns he filed for tax years 2006, 2007 and 2008. Both Larry Lake and Travis Lake are scheduled to be sentenced in mid-July 2013.

The cases were investigated by Internal Revenue Service Criminal Investigation. Assistant U.S. Attorney Brian Poe and Tax Division Trial Attorney Robert A. Kemins are in charge of the prosecutions.

TIP Report Heroes Visiting From Cameroon, Croatia, Guyana, Iraq, Japan, Nicaragua and the Philippines

ARLINGTON, Texas — U.S. Attorney Sarah R. Saldaña of the Northern District of Texas welcomed the 2013 Trafficking in Persons (TIP) Report Heroes at an executive session this morning of the North Texas Anti-Trafficking Team (NTATT) in Arlington, Texas. Each year, the Department of State honors individuals from around the world who have devoted their lives to fight human trafficking. The 2013 TIP Report Heroes were announced last week by Secretary of State John Kerry when he released the 2013 TIP Report, and Dallas is one of only three cities in the country honored with their visit.

U.S. Attorney Saldaña said, “I am honored and humbled to welcome this impressive group of heroes today – heroes who have made an extraordinary difference in the global fight against modern-day slavery. The fight against human trafficking and modern-day slavery, including the rights and interests of victims of these heinous crimes, is a Department of Justice priority.”

The TIP Report is the U.S. Government’s principal diplomatic tool to engage foreign governments on human trafficking. According to the Department of State, it is also the world’s most comprehensive resource of governmental anti-human trafficking efforts and reflects the U.S. Government’s commitment to global leadership on this key human rights and law enforcement issue. The U.S. Government uses the TIP Report to engage foreign governments in dialogues to advance anti-trafficking reforms and to combat trafficking and to target resources on prevention, protection and prosecution programs.

At today’s meeting, U.S. Attorney Saldaña introduced these Heroes and noted their tireless efforts – in spite of resistance, opposition and threats to their lives – to protect victims, punish offenders and raise awareness of ongoing criminal practices in their countries and abroad. The Heroes are from Cameroon, Croatia, Guyana, Iraq, Japan, Nicaragua and the Philippines, and each shared his personal story at the meeting.

The U.S. Attorney’s Office for the Northern District of Texas launched the NTATT in 2006 to combat human trafficking in the Dallas – Fort Worth area and surrounding counties. NTATT’s goal is to work with law enforcement and private agencies to discover and assist victims of human trafficking while identifying and prosecuting offenders. In addition to the U.S. Attorney’s Office, agencies represented in today’s roundtable discussion included: Arlington Independent School District Police Department, Arlington Police Department, Catholic Charities of Dallas, Catholic Charities of Fort Worth, Child Protective Services, Cooks Children’s Hospital, Dallas County Juvenile Department, Dallas Police Department, Dallas Independent School District Police Department, FBI, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Fort Worth Police Department, Genesis Women’s Shelter, Mosaic Family Services, Safe City Commission, Tarrant County Criminal District Attorney’s Office, Texas Alcoholic Beverage Commission, the U.S. Equal Employment Opportunity Commission and the Texas Department of Public Safety.

DALLAS — U.S. Attorney Sarah R. Saldaña of the Northern District of Texas welcomed several members of the Republic of Mexico’s Congressional Delegation this morning as they began a two-day visit to North Texas. This morning, before the opening session, U.S. Attorney Saldaña, Senator Arely Gómez Gonzàlez, Congresswoman Karina Labastida Sotelo and Congressman Jorge Sotomayer Chàvez spoke to several representatives from the media.

U.S. Attorney Saldaña said, “We are greatly privileged to welcome the Mexican Congressional Delegation to North Texas. We’re honored that as they transition to an accusatorial system of justice, similar to ours, they are interested in learning more about our system. We certainly look forward to a productive dialogue and exchange of ideas with our important neighbors and friends.”

In June 2008, Mexico amended its constitution to require that by June 2016, federal and state governments implement oral trials with full rights of confrontation. The judiciary committees from both the Mexican Senate and House of Representatives requested assistance from the U.S. in discussing procedures, outlined in proposed bills, which will be applicable to the states as well as the Mexican federal government.

Following introductions this morning, the Congressional Delegation participated in a round-table panel discussion on the American Accusatory System. Panelists from the Northern District of Texas included U.S. District Judges, U.S. Magistrate Judges, the Chief of U.S. Probation and Parole and the U.S. Federal Public Defender. Later, the delegation met with various executives from federal, state and local law enforcement where topics such as agency cooperation, task forces and evidentiary chain of custody were discussed. Representatives from Senator John Cornyn’s office and Senator Ted Cruz’s office also participated.

Following this morning’s sessions, the Congressional Delegation attended presentations on the responsibilities of the U.S. Attorney’s Office, including prosecuting organized crime and money laundering cases. The delegation visited a U.S. Magistrate Court for various hearings and then travelled to Dallas Police Department Headquarters where they met with senior staff and toured the facility.

On the second day of their visit to North Texas, the Delegation will observe state court proceedings and meet with the Dallas County District Attorney and state prosecutors. When they return to the federal courthouse, they will meet with the U.S. Federal Public Defender and staff, the Chief of U.S. Probation and Pretrial Services and U.S. District and Magistrate Judges. Their visit will conclude late tomorrow with another meeting with U.S. Attorney Saldaña.

Clayton Earthman Arrested This Week with a Firearm, Large Amount of Chemicals, Supplies and Literature Suspected to be for Bomb Making Purposes

DALLAS — Clayton Todd Earthman, 24, of Waxahachie, Texas, appeared this afternoon in federal court, before U.S. Magistrate Judge Irma C. Ramirez, who ordered that he remain in federal custody during the pendency of the matter. Earthman was arrested on June 18, 2013, when officers with the Dallas Police Department (DPD) discovered a firearm, bomb-making chemicals and related literature in his vehicle. He is charged in a federal criminal complaint with being an unlawful user and addict of controlled substances in possession of a firearm. The announcement was made today by U.S. Attorney Sarah R. Saldaña.

According to the complaint, on the afternoon of June 18, 2013, DPD officers conducted a traffic stop on a vehicle driven by Earthman. Officers recovered a .357 Glock pistol, large amounts of chemicals, supplies and literature suspected to be for bomb-making purposes, hand-written notes describing how to build explosive devices and booby traps from his vehicle.

Earthman later advised that he is a drug user, had used methamphetamine three days prior and was addicted to marijuana. He advised that he is taking methadone to quit using heroin, which he used for one year. Earthman further advised law enforcement that he is a “Doom’s day prepper,” and that he had more firearms and large amounts of chemicals in his residence.

During today’s hearing, evidence was presented that officers discovered additional unlawful controlled substances, a firearm, chemicals and a live alligator when they executed a federal search warrant at Earthman’s residence on June 20, 2013.

A federal complaint is a written statement of the essential facts of the offenses charged and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The maximum statutory penalty for the offense as charged is 10 years in federal prison.

The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Dallas Police Department. Assistant U.S. Attorney Taly Haffar is in charge of the prosecution.

FORT WORTH, Texas — Richard D. Anderson, 59, of Fort Worth, Texas, was sentenced this morning by U.S. District Judge John McBryde to 97 months in federal prison, after pleading guilty to an indictment charging one count of possession of child pornography. Anderson has been in custody since he entered that guilty plea in March 2013. 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 September 2012, officers with the Fort Worth Police Department’s Internet Crimes Against Children (ICAC) Unit executed a search warrant at Anderson’s home and seized computers and removable storage media. A forensic exam revealed images and videos of child pornography. Anderson admitted that he had downloaded images of child pornography from the Internet using newsgroups and that he had moved images from his computer to his flash 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 the Fort Worth Police Department’s ICAC and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Aisha Saleem was in charge of the prosecution.

FBI Says Luis Delagarza is the “Mesh Mask Bandit”

DALLAS — Luis Delagarza, 59, of Farmers Branch, Texas, has been arrested and charged in a federal criminal complaint with committing the armed bank robbery of a Wells Fargo Bank in Dallas in April 2013. This afternoon, Delagarza made his initial appearance in federal court before U.S. Magistrate Judge Irma C. Ramirez, who ordered that he remain in federal custody. A preliminary hearing and motion to detain the defendant will be conducted on Tuesday, June 25, 2013. The announcement was made today by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas and Diego Rodriguez, Special Agent in Charge for the FBI Dallas Division.

“The identification of the ‘Mesh Mask Bandit’ by the FBI’s Bank Robbery Task Force was the result of collaborative local and federal investigation across nine cities,” said Diego G. Rodriguez, Special Agent in Charge of the FBI Dallas Field Division. “The arrest of this dangerous individual illustrates the effectiveness of task forces, the support provided by the U.S. Attorney’s Office and cooperation within the law enforcement community.”

According to the complaint and affidavit filed in the case, on April 22, 2013, the FBI was notified that the Wells Fargo Bank, located at 13297 Josey Lane, in Farmers Branch, had been robbed by a Hispanic male wearing a disguise and armed with a handgun. When law enforcement arrived at the bank, a special agent with the FBI interviewed a witness who worked in the bank. The witness advised that he/she was at his/her desk when he/she observed a Hispanic male walk past a window, adjacent to his/her desk, and head toward the Bank’s main entrance. The witness advised that as the man was entering the bank he/she saw him pull down a mask to cover his face. The witness further noted that as the man entered the bank and approached the bank tellers, he pointed a handgun at them and demanded money. As the bank tellers were scared for their well-being, they complied with the robber’s demands. The witness stated that as the robber was leaving the bank, he removed his mask, and again, this witness saw the robber’s face. This witness later positively identified Delagarza in a photo line-up.

The investigation is being conducted by the FBI and the Farmers Branch Police Department. Assistant U.S. Attorney Taly Haffar is in charge of the prosecution.

LUBBOCK, Texas --- Billy Ray Doyle, 59, of San Angelo, Texas, was sentenced today by U.S. District Judge Sam R. Cummings to 48 months in federal prison and 10 years of supervised release, following his guilty plea in March 2013 to one count of attempted transfer of obscene material to a minor, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

In late November 2012, special agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) noticed an advertisement posted on an Internet message board entitled “Looking for company 18-25ish –m4m,” and determined that it was posted by Doyle. During ensuing email conversations between Doyle and an undercover agent who posed as a 15-year-old male, Doyle discussed with the undercover agent such things as showering together, lying naked on a bed together and possibly engaging in other sexual activity. The undercover agent’s age was discussed several times and Doyle repeatedly promised that a potential sexual relationship would remain secret. On December 15, 2012, Doyle emailed the undercover agent a sexually explicit photograph of himself. Doyle was arrested a few days later at a convenience store where he and the undercover agent had agreed to meet. He has been in custody since that 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.”

ICE HSI was in charge of the investigation. Assistant U.S. Attorney Steven M. Sucsy prosecuted.

LUBBOCK, Texas — James Arthur Abney, 53, of San Angelo, Texas, appeared today in federal court in Lubbock, Texas, and pleaded guilty, before U.S. District Judge Sam R. Cummings, to one count of possession of child pornography. Abney, who remains in custody, faces a maximum statutory sentence of 10 years in federal prison, a $250,000 fine and a lifetime of supervised release. Judge Cummings ordered a presentence investigation report with a sentencing date to be set after the completion of that report. 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 is being 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 is in charge of the prosecution.

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, each appeared this morning before U.S. District Judge Sam R. Cummings and pleaded guilty to one count of possession with intent to distribute more than 50 kilograms, but less than 100 kilograms, of marijuana. They each face a maximum statutory penalty of 20 years in federal prison and a $1 million fine. Judge Cummings ordered presentence investigation reports with sentencing dates to be set after the completion of those reports. Both defendants remain on bond. 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 is being 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 is in charge of the prosecution.

Defendant Will Forfeit More Than $476,000 in Seized Funds to Government

DALLAS — Linus Nwosu appeared this morning before U.S. District Judge Reed C. O’Connor and pleaded guilty to an Information charging one count of conspiracy to commit structuring. He faces a maximum statutory penalty of five years in federal prison, a fine not to exceed $250,000, or twice any pecuniary gain to the defendant or loss to the victim (s) and restitution. In addition, according to the terms of the plea agreement, Nwosu will forfeit $476,390, that has been seized, to the government. He will remain on bond pending sentencing, which is set for October 10, 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, Nwosu owns and operates two pharmacies, with his wife, in the Dallas – Fort Worth area under the name of GeneRx Discount Pharmacy, Inc. From October 2011 to May 2012, Nwosu and his wife agreed to structure GeneRx’s cash deposits to avoid the currency reporting requirements. During this time, Nwosu and his wife made approximately 77 cash deposits totaling $476,190; each of the deposits was made with the intent to avoid the currency reporting requirements as required by law.

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

Defendant Also Charged with Illegal Reentry After Deportation

DALLAS — A federal grand jury in Dallas returned a three-count indictment today that charges Ignacio Garcia, 32, with one count each of conspiracy to transport illegal aliens, transporting illegal aliens and illegal reentry after deportation, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Garcia has been in custody since his arrest on June 11, 2013. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

The indictment alleges that on June 11, 2013, Garcia conspired to transport, by means of a motor vehicle for the purpose of commercial advantage and private financial gain, aliens who entered and remained in the U.S. The indictment further alleges that on June 11, 2013, Garcia, an alien, was in the U.S., having been deported and removed from the U.S. in March 2011. Public documents, filed in U.S. District Court for the Southern District of Texas, note that Garcia was convicted of transporting undocumented aliens and sentenced in November 2010 to 13 months imprisonment, to be followed by deportation.

A federal indictment is an accusation by a grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. Upon conviction, however, the conspiracy count and the substantive transportation of illegal aliens count each carry a maximum statutory penalty of 10 years in federal prison and a $250,000 fine. The illegal reentry count, as charged, carries a maximum statutory penalty of 20 years in federal prison and a $250,000 fine.

The case is being investigated by U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney P.J. Meitl is in charge of the prosecution.