Northern District of Texas

LUBBOCK, Texas — Victor Lopez, 47, of San Angelo, Texas, was sentenced yesterday by U.S. District Judge Sam R. Cummings to 210 months in federal prison, following his guilty plea in March 2013 to one count of receipt of child pornography. In addition, Judge Cummings ordered that Lopez serve an additional 20-year term of supervised release. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

Lopez has been in federal custody since his arrest following the execution of a federal search warrant at his residence by special agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) on January 23, 2013. He was indicted in February 2013 on several counts of receiving and possessing child pornography.

According to plea documents filed in the case, Lopez admitted that he used file-sharing software to collect numerous videos of child pornography, including depictions of sadistic and masochistic 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 ICE HSI and the San Angelo Police Department. Assistant U.S. Attorney Steven M. Sucsy prosecuted.

DALLAS — Howard Tyson, 45, of Dallas, was sentenced today by Chief U.S. District Judge Sidney A. Fitzwater to the statutory maximum of 10 years in federal prison, following his guilty plea in March 2013 to one count of possession of child pornography. He was remanded into custody after he entered that plea. 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, Tyson used a peer-to-peer file-sharing program to download child pornography from the internet onto his computer and his wife’s computer. When agents with the U.S. Secret Service executed a federal search warrant at his residence on July 26, 2011, Tyson admitted that he had been downloading child pornography for approximately one year. He said that he downloaded most of the child pornography onto his wife’s laptop computer. A forensic examination of both computers showed that the hard drives contained more than 8000 images and 20 videos of child pornography. Tyson acknowledged that some of the images were sadistic and that the images and videos were of real prepubescent and pubescent 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 U.S. Secret Service and the Plano Police Department. Assistant U.S. Attorney Camille Sparks prosecuted.

Defendant Also Ordered to Pay $150,000 in Restitution to a Victim Whose Photographs Were Included in His Collection

ABILENE, Texas — Juan Jose Guerra, 51, was sentenced on Wednesday, by U.S. District Judge Jorge A. Solis, to the statutory maximum of 10 years in federal prison for possessing child pornography. In addition, Judge Solis ordered that Guerra pay $150,000 in restitution to a victim whose photographs were included in his child pornography collection. The announcement was made today by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

Guerra has been in federal custody since December 6, 2011. He pleaded guilty in February 2013 to one count of possession of child pornography. According to documents filed in the case, Guerra owned a computer, which he kept at his residence in Big Spring, Texas, which contained numerous images of child pornography.

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 case was investigated by the FBI, the Department of Homeland Security, U.S. Border Patrol, and the Midland and Big Spring Police Departments. Assistant U.S. Attorney Steven M. Sucsy, of the U.S. Attorney’s Office in Lubbock, Texas, was in charge of the prosecution.

ABILENE, Texas — Roy Paul Granger, 42, was sentenced yesterday by U.S. District Judge Jorge A. Solis to 10 years in federal prison, following his guilty plea in January 2013 to one count of receipt of child pornography. Granger has been in custody since January 25, 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, Granger owned a computer, which he kept at his residence in Abilene, Texas, that was connected to the Internet. In April 2012, while searching online, using peer-to-peer software, for sexually explicit images of minors, Granger downloaded an image of child pornography onto his personal computer.

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

U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Abilene Police Department and the Lubbock Police Department’s Internet Crimes Against Children Task Force investigated the case. Assistant U.S. Attorney Steven M. Sucsy was in charge of the prosecution.

Erin Dawn Trevathan Also Ordered to Pay More Than $400,000 in Restitution

AMARILLO, Texas — Erin Dawn Trevathan, 26, of Amarillo, Texas, was sentenced this afternoon by U.S. District Judge Mary Lou Robinson to 36 months in federal prison and ordered to pay $442,297 in restitution following her guilty plea April 2013 to one count of fraud in connection with federal credit union entries. She was remanded to custody. Today’s announcement was made U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

According to documents filed in the case, Trevathan was employed by the Pampa Teachers Federal Credit Union as a loan officer from July 2008 until early December 2010, and during that time, she was the sole loan officer at the credit union. Her job consisted of processing personal loans and auto loans.

During an audit, irregularities were noticed. When confronted, Trevathan admitted that she had been making false entries and stealing cash from the credit union’s main account for her personal use. As a result of her false entries, loan manipulations and unauthorized activity, the Pampa Teachers Federal Credit Union suffered a loss of approximately $422,973.

The case was investigated by the FBI, with assistance from the National Credit Union Administration. Assistant U.S. Attorney Christy Drake was in charge of the prosecution.

AMARILLO, Texas — Donald Joseph West, 49, of Amarillo, Texas, an armed career criminal, was sentenced today by U.S. District Judge Mary Lou Robinson to a total of 35 years in federal prison following his conviction at trial in March 2013 on all counts of a superseding indictment charging felony offenses in connection with the November 5, 2012, armed robbery of FirstBank Southwest in Amarillo. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

U.S. Attorney Saldaña said, “In short, Donald West, a violent career criminal, presented a clear danger to the Amarillo community and, in particular, to the brave and dedicated law enforcement officers who serve it. Because of their extraordinary work on this case, all can rest easier tonight knowing that he will spend the next 35 years in prison.”

Diego G. Rodriguez, Special Agent in Charge of the FBI Dallas Field Division, said, “Combined efforts of the public’s assistance and a joint investigation by the Amarillo Police Department, Potter and Randall County Sheriff’s Offices and the FBI led to Donald West’s successful conviction and subsequent sentencing that reflects law enforcement’s commitment to protecting communities from dangerous career criminals.”

Donald West was convicted on one count of aggravated bank robbery, one count of being a felon in possession of a firearm and one count of using a firearm during and in relation to a crime of violence (the bank robbery). During the same trial, his nephew, David West, 43, who remains on bond, was convicted on one count of the unlawful sale and disposition of a firearm. His sentencing is set for June 26, 2013.

The government presented evidence at trial that on Monday, November 5, 2012, Donald West, wearing a mask, entered the FirstBank Southwest, located at 5701 Southwest 34th Street, in Amarillo, pointed a gun at a teller and demanded cash. The teller placed money in a bag and Donald West left the bank. He was arrested the next evening by officers with the Amarillo Police Department and special agents with the FBI and has been in custody since that time.

The government presented further evidence that during the robbery, Donald West used a semiautomatic pistol. When he was arrested, a firearm, that was given to him by David West shortly before the robbery, was recovered. Donald West is a convicted felon, having been convicted 1) in Randall County, Texas, of committing aggravated robbery with a deadly weapon in 1988; 2) in U.S. District Court for the Northern District of Texas, with conspiracy to commit bank robbery and bank robbery in 1987; and 3) in Randall County for evading detention in 2011. The government presented further evidence that David West knowingly gave the 9mm caliber pistol to his uncle, well knowing that he was a convicted felon.

The investigation was conducted by the FBI, the Amarillo Police Department and the Potter and Randall County Sheriff’s Offices. Assistant U.S. Attorneys Jeff Haag, Justin Cunningham and Christy Drake prosecuted.

ABILENE, Texas — Robert Jade Lopez-Parker, 40, most recently a resident of Abilene, Texas, was sentenced Wednesday by U.S. District Judge Jorge A. Solis to 46 months in federal prison for failing to register as a sex offender, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

A federal jury in Abilene convicted Lopez-Parker in January 2013 on a one-count indictment charging that he failed to register as a sex offender.

The U.S. Marshals Service received information that Lopez-Parker, a sex offender from Washington and Oregon, was living in Abilene. He was arrested on July 6, 2012, on a warrant out of Scurry County, Texas, and has been in custody since that time.

According to evidence presented at trial, Lopez-Parker lived in the Abilene area at least three months prior to his arrest, and he never registered in Texas as a sex offender, as required by the Sex Offender Registration and Notification Act. He was required to register as a sex offender because he had been convicted of a sex offense, Child Molestation in the Third Degree in Clark County Washington, for which he was sentenced on January 8, 2002. He last registered in Oregon on January 30, 2012.

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 U.S. Marshals Service, the Texas Department of Public Safety, the Abilene Police Department, the Taylor County Sheriff’s Office, the Callahan County Sheriff’s Office, and the Oregon State Police. Assistant U.S. Attorney Steven M. Sucsy and Deputy Criminal Chief Assistant U.S. Attorney Denise Williams prosecuted.

Defendant Allegedly Involved in Anabolic Steroids Distribution Investigation

DALLAS — Thomas S. Kantzos, 45, of Fort Worth, Texas, an officer with the Arlington Police Department (APD), was arrested last night on a federal criminal complaint charging him with unlawfully providing law enforcement sensitive information by exceeding authorized access to a protected computer. He will make his initial appearance in federal court this afternoon, at 2:00 p.m., before U.S. Magistrate Paul D. Stickney. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

According to the affidavit filed with the criminal complaint, a particular individual (witness), who was arrested in January 2013 for distributing anabolic steroids, a Scheduled III controlled substance, admitted to routinely using and distributing anabolic steroids and human growth hormones (HGH) during the last 13 years. This witness also admitted that during the last five or six years, he directly and regularly provided anabolic steroids and HGH to Kantzos, whom he knew to be an officer with the APD. In fact, on at least one occasion, this witness delivered approximately 20 HGH kits to Kantzos while Kantzos was on duty, wearing an APD uniform and driving a marked APD patrol car.

The affidavit further notes that on multiple occasions, Kantzos solicited anabolic steroids from this witness for himself and for others, including friends and colleagues in the APD. Kantzos allegedly collected money from the other individuals before he obtained the steroids, but on some occasions, he “fronted” the money for the purchases. According to the affidavit, most of the anabolic steroids and HGH he obtained from this witness were provided to other officers of the APD. Also, Kantzos allegedly put this witness in contact with two other APD officers so that they could obtain anabolic steroids directly.

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

On several occasions, according to the affidavit, this witness, who indicated he was concerned that police might be watching his activities, asked Kantzos to query a name or a license plate using a law enforcement database. On several occasions, Kantzos did this, or had someone else do it for him, and then provided the obtained sensitive information to the witness. In fact, on one occasion in December 2011, Kantzos provided the name of a person who was known to be a law enforcement officer, and based on that information, the witness inspected his/her vehicle and discovered a tracking device attached to it. The investigation revealed that this witness immediately began “laying low” for several weeks. During that time, however, the witness and Kantzos talked about the tracking device and the police surveillance of the witness.

A federal complaint is a written statement of the essential facts of the offense charged, and must be made under oath before a magistrate judge. 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. Kantzos is charged with exceeding authorized access to a protected computer. That offense, as charged, carries a maximum statutory penalty 10 years in federal prison and a $250,000 fine, per count.

The matter is being investigated by the FBI and the Texas Ranger Division of the Texas Department of Public Safety. Assistant U.S. Attorney Mark Penley and Deputy Criminal Chief Assistant U.S. Attorney Gary Tromblay are in charge of the prosecution.

FORT WORTH, Texas — In U.S. District Court in Fort Worth, Texas, today, U.S. District Judge Terry R. Means sentenced two Tarrant County men to lengthy federal prison sentences following their guilty pleas late last year in separate, unrelated child pornography cases, announced U.S. Attorney Sarah R. Saldaña.

In the first case, Judge Means sentenced David Wayne Hatcher, 42, of Richland Hills, Texas, to 108 months in federal prison following his guilty plea in December 2012 to two counts of possession of child pornography. Judge Means remanded Hatcher, who has been on bond, into custody following the hearing. According to documents filed in the case, when agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) executed a federal search warrant at Hatcher’s home in 2011, they seized computer equipment and related storage media that contained video files of minors engaged in sexually explicit conduct.

In the other case, Judge Means sentenced Kristopher D. King, 25, of Euless, Texas, to 132 months in federal prison, following his guilty plea in November 2012 to one count of transportation of child pornography. King has been in custody since his arrest in September 2012. According to documents filed in the case, when FBI agents executed a federal search warrant at King’s home in 2010, King advised them that he had been using a peer-to-peer file-sharing program to trade files depicting child pornography. A forensic examination of King’s external hard drive revealed videos and images containing visual depictions of minors engaged in sexually explicit conduct.

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

ICE HSI, the Orange County, Texas Sheriff’s Office and the FBI investigated. Assistant U.S. Attorney Aisha Saleem prosecuted.

ABILENE, Texas — Aaron Charles Lustfeldt, 27, of Big Spring, Texas, appeared today in federal court, before U.S. Magistrate Judge E. Scott Frost, and pleaded guilty to one count of receipt of child pornography. He faces a maximum statutory penalty of not less than five years or more than 20 years in federal prison, a $250,000 fine and a lifetime of supervised release. A sentencing date was not set. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

According to documents filed in the case, on February 1, 2013, the Big Spring Police Department was dispatched to Comanche Trail Park in Big Spring regarding a male exposing himself to children in the play area. Officers located Lustfeldt, who admitted being in the park, but denied doing anything inappropriate, stating that he was not supposed to be at the park because he was a registered sex offender. Later, as part of their investigation, officers located images of child pornography on his cell phone, and Lustfeldt eventually admitted that he had received and downloaded images from the Internet onto his cell phone.

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

The case is being investigated by U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Big Spring Police Department. Assistant U.S. Attorney Justin Cunningham, of the U.S. Attorney’s Office in Lubbock, Texas, is in charge of the prosecution.

Califco, LLC Also Pleads Guilty and Agrees to Pay a $500,000 Fine

DALLAS — Jonathan Isaac Shokrian, 28, who served as a Regional Director at Califco, LLC, with oversight of the company’s business operations in Texas, appeared in federal court in Dallas today, before Chief U.S. District Judge Sidney A. Fitzwater, and pleaded guilty to an Information charging one count of failure to notify under the Clean Air Act, related to an asbestos removal project. In addition, on behalf of the corporation, Califco’s President and CEO, Elias Shokrian, who is Jonathan Shokrian’s father, pleaded guilty to the same offense. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

Califco is a property management company headquartered in Beverly Hills, California; it has a regional office located on North Story Road in Irving, Texas. Califco owns and operates several commercial properties in the Dallas area, including Plymouth Park Shopping Center on North Story Road in Irving and Crest Plaza Shopping Center on South Lancaster Road in Dallas.

Jonathan Shokrian faces a maximum statutory penalty of two years in federal prison, a $250,000 fine and restitution. If the Court accepts the term of the government’s plea agreement with the corporation, Califco will pay a $500,000 fine and will be placed on a five-year term of probation. Sentencing is set for September 27, 2013, before U.S. District Judge Sidney A. Fitzwater.

The Clean Air Act authorizes the U.S. Environmental Protection Agency (EPA) to establish standards to prevent or limit the emission of hazardous air pollutants into the atmosphere. The EPA has enacted regulations under the Clean Air Act that control the removal, handling and disposal of asbestos.

According to documents filed in the case, Elias Shokrian hired another individual, “B.M.,” to be Califco’s Director of Development and supervise construction and renovation and provide oversight of asbestos abatement work. In 2008, Califco, Jonathan Shokrian and B.M. contracted with a specialized asbestos abatement contractor to remove asbestos from an old movie theater in the Crest Plaza Shopping Center. That abatement was conducted in compliance with all federal, state and local regulations and was completed in October 2008.

Approximately one month later, Jonathan Shokrian decided to conduct a renovation of the abandoned former Fazio’s department store in the Plymouth Park Shopping Center. Rather than hiring a professional asbestos abatement contractor, as Califco had done on its Crest Plaza Project, Shokrian attempted to save money by employing two day laborers to remove ceiling tile and floor tile and mastic from the Fazio’s building, even though he knew these materials contained asbestos.

While Califco provided the day laborers with masks, respirators and other tools to facilitate the removal of the asbestos-containing material, the masks and respirators were not adequate to protect the workers from the asbestos fiber. Neither Shokrian nor B.M. informed the day laborers on the site, or the Califco-employed maintenance worker, that there was asbestos in the tile and mastic being removed. Neither Shokrian nor B.M. notified any of the other commercial tenants of the Plymouth Park Shopping Center that asbestos-containing materials were being removed from the Fazio’s building.

In mid to late February 2009, day laborers, under Shokrian’s supervision, began using large amounts of gasoline to remove the remaining asbestos-containing floor tile mastic in the Fazio’s building. On February 27, 2009, after responding to a call regarding the overwhelming smell of gasoline in the area around the Plymouth Park Shopping Center, the Irving Fire Department ordered the evacuation of the shopping center and a portion of a nearby residential neighborhood because of the concentration of gasoline fumes in the Fazio’s building.

The investigation was conducted by the EPA and the Texas Department of State Health Services. Assistant U.S. Attorney Errin Martin is in charge of the prosecution.

is Sentenced to 60 Months in Federal Prison and Ordered to Pay Nearly $450,000 in Restitution

DALLAS — Jason Cano was sentenced this afternoon, by U.S. District Judge Barbara M. G. Lynn, to 60 months in federal prison and ordered to pay $447,830 in restitution following his guilty plea in January 2013 to one count of filing false, fictitious and fraudulent claims against the U.S. and one count of aggravated identity theft. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

A criminal complaint was filed in January 2012 charging Cano with making false, fictitious or fraudulent claims, aggravated identity theft and wire fraud. In February 2012, a federal grand jury returned an 11-count indictment charging Cano with five counts of wire fraud, five counts of false, fictitious or fraudulent claims and one count of aggravated identity theft. He was arrested several months later, in September 2012, by special agents with Internal Revenue Service - Criminal Investigation (IRS-CI), in the Trenton, New Jersey area, and has been in federal custody since that time.

According to the factual resume filed in the case, beginning in 2008 and continuing through February 24, 2011, Cano prepared and filed at least 497 fraudulent federal income tax returns, claiming $883,427 in refunds, by using the names and social security numbers of deceased individuals. In fact, many of the identities were those of deceased 16-year-olds that the defendant had obtained from the Social Security death index, that was accessible through a number of public websites for a period of time.

The factual resume also states that Cano fabricated a Form W-2 for each return that contained a fictitious amount of paid wages and tax withholding, and those W-2 forms were purportedly issued by one of three employers, HI-LO Ozark Automotive, Labor Ready or Pappy’s Sand and Gravel. Cano filed most of these returns electronically using Turbo Tax and each return he filed requested that the refund be deposited into a reloadable prepaid debit card that Cano had acquired. After the refunds were loaded, Cano would use the cards for his own use and benefit, or provide them to friends and associates for their use.

In fact, according to the complaint filed in the case, the investigation into Cano’s activities began when IRS CI received information from a fraud compliance officer, at a company that issues stored value cards and prepaid debit cards, that an individual received three federal income tax refunds on one prepaid card. Generally, each tax payer is issued only one tax refund.

According to both the complaint and factual resume, on February 25, 2011, a federal search warrant was executed at Cano’s residence in Kemp, Texas, and IRS-CI agents seized dozens of documents containing the names, social security numbers, wages, employer information and direct deposit account numbers associated with the fraudulent returns he filed. The factual resume also states that a forensic exam of computers seized revealed that the Turbo Tax website had been accessed 1,876 times and the IRS website and bank-related websites had been accessed hundreds of times.

In September 2012, the Justice Department’s Tax Division issued a new directive to further the efforts of the Tax Division and U.S. Attorneys’ Offices to respond quickly and effectively to the challenges in stolen identity refund fraud (SIRF) cases. Additional information about the Tax Division and its enforcement efforts may be found at http://www.justice.gov/tax/.

IRS-CI was in charge of the investigation and Assistant U.S. Attorney Chris Stokes 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:

• Brittany Brown, 23, sentenced to 46 months
• Melanie Brown, 40, sentenced to 24 months
• Michael Eugene Peters, 35, sentenced to 84 months
• Travis Ritchie, 63, sentenced to 72 months

Melanie Brown pleaded guilty to one count of conspiracy to possess with intent to distribute and to distribute and to possess with intent to manufacture and to manufacture methamphetamine. She admitted that she and others agreed to and engaged in the distribution of methamphetamine. She further admitted that on numerous occasions, she distributed quantities of methamphetamine to, and received payments for methamphetamine from customers in the Wichita Falls area. Co-conspirator Steve Ysasaga supplied the methamphetamine that she distributed.

Ritchie pleaded guilty to one count of conspiracy to possess with intent to distribute and to distribute methamphetamine. He admitted that on multiple occasions he distributed methamphetamine, supplied by Ysasaga, and facilitated its distribution in Wichita Falls. He also admitted that he allowed Ysasaga to distribute methamphetamine to other co-conspirators, including Franklin Dewayne Hubbard and David Calandreli, from his residence on 7th Street in Wichita Falls.

Brittany Brown pleaded guilty to one count of possession with intent to distribute and distribution of methamphetamine. In March 2012, Brittany Brown sold approximately 20 grams of methamphetamine to an undercover officer.

Peters, who was previously convicted of felony offenses, pleaded guilty to one count of being a felon in possession of a firearm. He admitted that on March 7, 2011, he possessed a loaded .380 caliber pistol that was discovered by law enforcement during a search of his vehicle subsequent to a traffic stop.

To date, 29 of the 30 defendants charged in this conspiracy have entered guilty pleas; a total of 19 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.

DALLAS — Tommy Dean Turner was sentenced yesterday to 36 months in federal prison and ordered to pay $365,626 in restitution following his guilty plea in February 2013 to one count of conspiracy to file false claims. His co-conspirator, Shaunthina Daniel Rushing, who pleaded guilty to the same offense, is scheduled to be sentenced on June 19, 2013. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

According to factual resumes filed in the cases, Turner conspired with Rushing, and others, to file approximately 50 fraudulent tax returns that resulted in more than $400,000 in false claims. The returns included Forms 5405, representing that the taxpayers were entitled to claim a First-Time Homebuyer Tax Credit (FTHTC) under the provisions of the Housing and Economic Recovery Act of 2008.

That refundable tax credit could be claimed if a person purchased a main home in the U.S. after April 8, 2008, and before December 1, 2009, and the person (and spouse, if married) did not own any other main home during the previous three years of the date of purchase. Qualifying taxpayers who purchased a home between January 1, 2009, and December 1, 2009, could claim up to $8,000 as the FTHBC.

Turner admitted that the co-conspirators caused bank accounts to be opened to receive the fraudulent tax refund checks, obtained and disbursed the proceeds among themselves and others and maintained detailed records and logs that identified the fraudulent tax returns the money received and the disbursement of proceeds.

Internal Revenue Service Criminal Investigation investigated. Assistant U.S. Attorney J. Nicholas Bunch and DOJ Tax Division Trial Attorney Robert A. Kemins prosecuted.

FORT WORTH, Texas — Deundrea R. Miller, 27, appeared in federal court yesterday, before U.S. Magistrate Judge Jeffrey L. Cureton, and pleaded guilty to a superseding information charging conspiracy to commit sex trafficking of a minor. Co-defendant Brittanie S. Brattain, 22, pleaded guilty on May 1, 2013, to the same offense. Each defendant faces a maximum statutory penalty of life in prison and a $250,000 fine. U.S. District Judge Terry R. Means is scheduled to sentence Miller on November 12, 2013, and Brattain on October 15, 2013; both defendants remain in custody. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

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

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

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

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

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

LUBBOCK, Texas — Robert Gregory Bruce, aka Greg Bruce, 46, appeared in federal court today before U.S. District Judge Sam R. Cummings and pleaded guilty to an Information charging one count of mail fraud and aiding abetting, stemming from a fraud scheme he ran while he served as a Vice President of University Medical Center (UMC) in Lubbock. Bruce, a resident of Lubbock, will remain on bond. He faces a maximum statutory penalty of 20 years in federal prison, a $250,000 fine and restitution. Judge Cummings ordered a presentencing investigative report with a sentencing date to be set upon the completion of that report.

According to documents filed in the case, beginning in June 2007 and continuing to December 12, 2011, Bruce conspired with Rudolph Reyes Mata, aka Rudy Mata, to submit false and fraudulent invoices for two companies, B.R. Media Monitoring (an alter ego of Bruce) and ATAM Technology Solutions, knowing that the submission of such invoices would cause UMC to pay the fake invoices. Over the course of the conspiracy, Bruce and Mata caused UMC to pay approximately $681,908 on invoices for fake companies that did not provide goods or services as described in the invoices. Bruce used these funds, in part, to pay Mata’s personal living expenses, educational expenses, and travel and entertainment expenses.

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

The case is being investigated by the FBI. Assistant U.S. Attorney Amanda R. Burch is in charge of the prosecution.

LUBBOCK, Texas — Jacob Ray Albarado, 20, of Big Spring, Texas, appeared in federal court in Lubbock today, before U.S. District Judge Sam R. Cummings, and pleaded guilty to one count of possession of child pornography. He faces a maximum statutory penalty of 10 years in federal prison, a $250,000 fine and a lifetime of supervised release. Albarado has been in custody since his arrest in March 2013. 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, after befriending a minor female (Jane Doe), Albarado communicated with her through the use of his cell phone for more than one year. In late 2012, Jane Doe began a dating relationship with Albarado and ran away from her home to his apartment in Big Spring. Albarado and Jane Doe agreed to produce a video depicting the two of them engaged in sexually explicit conduct. Albarado then held Jane Doe’s cell phone and produced a video of her while she engaged in sexually explicit conduct with Albarado.

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

The investigation is being conducted by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Big Spring Police Department. Assistant U.S. Attorney Steven M. Sucsy is in charge of the prosecution.

Each Defendant Faces Up to 20 Years in Federal Prison

FORT WORTH, Texas — Latona E. Long, 27, of Greenville, Texas, and Michael M. Bodie, 41, of North Richland Hills, Texas, each appeared today before U.S. Magistrate Judge Jeffrey L. Cureton and pleaded guilty to one count of distribution of child pornography. Bodie was arrested in February 2013 and Long was arrested the following month on related charges outlined in criminal complaints, and they have been in custody since that time. They each face a maximum statutory penalty of not less than five or more than 20 years in federal prison, a $250,000 fine and a lifetime of supervised release. Sentencing is set for November 12, 2013, before U.S. District Judge Terry R. Means. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

According to documents filed in the case, in February 2013, FBI agents executed a search warrant at Bodie’s home, regarding his use of a Yahoo email account that was being used to send and receive images of child pornography. Bodie admitted that he did use that account to send and receive child pornography and that he had corresponded via Yahoo email, with a person, L.L., now known to be Long.

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

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

The investigation is being conducted by the FBI. Assistant U.S. Attorney Aisha Saleem is in charge of the prosecution.

FORT WORTH, Texas — Craig Jerome Gadley, Jr., 23, and Joshua Alexander Smith, 25, both of Mansfield, Texas, were each sentenced on Monday, June 3, 2013, by U.S. District Judge Terry R. Means, to 15-year federal prison sentences, following their guilty pleas last year to sex trafficking charges. Specifically, Gadley pleaded guilty to one count of sex trafficking of a minor and Smith pleaded guilty to one count of sex trafficking by force, fraud and coercion. The announcement was made today by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

According to plea documents filed in the case, law enforcement learned, in June 2011, that a 16-year-old female, Jane Doe #1, had been working as a prostitute for Gadley, aka “Cjay the Don,” in and around the Dallas/Fort Worth (DFW) area. Jane Doe #1 met Gadley while she was working as a stripper at a night club in Fort Worth, Texas, and he promised her that she could earn more money by working for him. Gadley gave Jane Doe #1 money and took her shopping. Although he knew she was 16-years-old, he told her he didn’t care and that she owed him for the money he had provided her.

Gadley took photographs of Jane Doe #1 in lingerie and in the nude and then posted advertisements of her on websites used to promote and advertise commercial prostitution. He drove her to hotel rooms in the DFW area and directed her to have sex with men for money. Gadley took all of the proceeds, provided her with necessities such as food and clothing, and provided condoms and hotel rooms for her to use.

Another female, 19-year-old, Jane Doe #2, who worked as a prostitute for Smith, was arrested on July 30, 2011 for prostitution, after undercover officers who saw ads for her on the Internet arranged to meet her at a hotel in Arlington, Texas.

The plea documents further state that Smith and Jane Doe #2 had dated until he convinced her that she could make a lot of money if she worked for him as a prostitute. She eventually agreed and began working for Smith in May 2011. He placed ads for Jane Doe #2 on websites that advertised prostitution and received all of the money she earned. He provided her necessities such as food, gas and clothing. He also provided her condoms and hotel rooms for her to use in the Fort Worth area.

Jane Doe #2 was fearful of Smith. While working for him, he choked her, held her against a wall, poured drinks on her head, pulled her hair and threatened to harm her. He kept pushing her to work longer hours and acquire more clients.

The case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the North Texas Trafficking Task Force, including the Arlington, Dallas and Fort Worth Police Departments.

Assistant U.S. Attorney Chris Wolfe was in charge of the prosecution.

DALLAS — Marci Johnson, 46, of Kaufman, Texas, appeared in federal court today and pleaded guilty before U.S. District Judge Jorge A. Solis to an Information charging one count of mail fraud, stemming from her embezzlement of more than $772,000, over at least seven years, from her employer, Spaeth Communications. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

If the Court accepts the terms of the plea agreement and full restitution of $772,829.25 has been paid prior to sentencing, the parties agree that the appropriate term of imprisonment should not exceed 24 months. Sentencing is set for September 18, 2013, before Judge Solis.

According to documents filed in the case, from at least August 2003 to March 2011, Johnson embezzled $772,829.25 from her employer, Spaeth Communications of Dallas. During part of that time, Johnson was the company’s Chief Administrative Officer, and in that role, had access to its company checks and company credit cards. Based on her long-standing working relationship with the company’s owner, Johnson occupied a position of trust that provided her substantial discretion over the company’s bank accounts.

Johnson admitted using her corporate American Express card for numerous personal charges, such as dining, department stores and entertainment. In addition, she used company checks to pay for outstanding charges on the company’s American Express bill, including charges she made for personal expenses. She also wrote company checks to cover charges on her personal credit cards. In fact, Johnson admitted that she wrote company checks to Citibank, her personal credit card provider, to cover the cost of an outdoor deck, hot tub, outdoor granite countertops and grill at her personal residence in Kaufman and caused false entries to be made in the company’s accounting software to prevent others from discovering her fraudulent purchases.

The investigation was conducted by the U.S. Postal Inspection Service and the FBI. Assistant U.S. Attorney J. Nicholas Bunch is in charge of the prosecution.

DALLAS — Gary Wayne Thomas, 54, of Ennis, Texas, appeared in federal court this morning, before U.S. Magistrate Judge Irma C. Ramirez, and pleaded guilty to an Information charging theft of mail matter by an officer or employee. He faces a maximum statutory penalty of five years in federal prison, a $250,000 fine and restitution. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

According to documents filed in the case, between August 2011 and September 2012, Thomas worked at the Ennis Post Office, and his duties included assisting customers at the retail window, dispatching raw mail, pulling raw mail from collection boxes and sorting outgoing mail dropped in the post office’s lobby. During that time, Thomas embezzled and stole mail items that were intended to be conveyed by the U.S. mail that had been entrusted to him as a U.S. Postal Service employee.

For example, Thomas stole a birthday card containing a $50.00 Wal-Mart gift card that had been sent from a woman to her six-year-old grandson. That piece of mail had been mailed inside the Ennis Post Office. Thomas used the gift card to purchase personal items at Wal-Mart.

The case was investigated by the U.S. Postal Service Office of Inspector General. Assistant U.S. Attorney P.J. Meitl is in charge of the prosecution.

LUBBOCK, Texas — On June 5, 2013, Gabriel Tenorio, 30, will appear in federal court in Lubbock, Texas, before U.S. Magistrate Judge Nancy M. Koenig, on a federal complaint filed on Friday, May 31, 2013, that charges him with robbing a branch of FirstBank Southwest (FBSW) in Amarillo, Texas, last month. Tenorio is currently in custody on state charges. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

According to the affidavit filed with the complaint, on the morning of May 20, 2013, Tenorio, wearing dark clothing, a hat and a mask covering his face, and brandishing a sawed-off shotgun, robbed the FBSW located at 5701 SW 34th Street, in Amarillo. The robber was observed without his mask by two people and another person saw the vehicle he drove leaving the bank. Two days later, officers with the Lubbock Police Department located FBSW money straps, a bag and a sawed-off shotgun, consistent with items from the robbery, in a field near the Lubbock airport.

The investigation revealed that Tenorio was staying at a motel in Lubbock. Law enforcement observed him exit the motel and leave, driving an older model vehicle. After his arrest, a search of that vehicle and his motel room yielded an amount of cash consistent with that taken in the FBSW robbery.

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 maximum statutory penalty for the charged offense of bank robbery is 20 years in federal prison and a $250,000 fine.

The investigation is being conducted by the FBI and the Amarillo and Lubbock Police Departments. Assistant U.S. Attorney Jeffrey R. Haag is in charge of the prosecution.

DALLAS - Dallas County Hospital District d/b/a Parkland Health and Hospital System (Parkland) settled allegations it violated the civil False Claims Act and Texas Medicaid Fraud Prevention Act, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. The U.S. and Texas contend Parkland caused unallowable and “upcoded” physician consultations and other services to be submitted to Medicare and Texas Medicaid for certain physical medicine and rehabilitation (PMR) related items and services between 2007 and 2011. Parkland fully cooperated with the investigation, and by settling, did not admit any wrong-doing or liability.

When patients are admitted to a hospital, specialists, like PMR physicians, often consult with the attending physician on a variety of issues. At teaching hospitals, faculty physicians may bill for the supervision of residents, if present for the key or critical portions of the services. In both cases such consults, if medically appropriate, are reimbursed by Medicare and Texas Medicaid. The United States and Texas based their investigation on allegations that Parkland submitted or caused the submission of false and fraudulent PMR claims, and false statements in support of such claims, to the Medicare and Texas Medicaid programs between 2007 and 2011 for: (1) consultations that were never requested by a patient’s treating physicians and/or lacked medical necessity; (2) services related to the inappropriate supervision of residents and/or lacked medical necessity; (3) up-coded and inflated evaluation and management services; (4) inpatient rehabilitation stays that did not meet billing requirements; and (5) other unreimbursable costs.

The U.S. and Texas initiated the investigation in response to a March 2010 whistleblower suit brought by Lien Kyri, M.D., a former resident in the PM&R department, UTSW Medical Center at Dallas. Under the False Claims Act and Texas Medicaid Fraud Prevention Act, private individuals may bring actions alleging fraud on behalf of the U.S. and Texas and collect a share of any proceeds recovered by the suit. Dr. Kyri may receive up to 30% of the recovery under the settlement. U.S. Attorney Saldaña praised the efforts of the Office of Inspector General of the U.S. Department of Health and Human Services (OIG) and the Texas Medicaid Fraud Control Unit. U.S. Attorney Saldaña also noted “this settlement demonstrates the Northern District of Texas, and the entire Department, remain committed to investigating allegations of health care fraud, regardless of provider or affiliation.” “Any time false claims are submitted for payment, the nation’s taxpayers and health insurance programs suffer,” said Special Agent in Charge Mike Fields of the OIG’s Dallas Regional Office. “Our agents will continue working to identify providers who manipulate the system to grab precious Medicare and Medicaid dollars to which they are not entitled.”

In addition to paying nearly $1.4 million, Parkland agreed to enter into with the OIG a five-year corporate integrity agreement (CIA) in exchange for release of the agency’s administrative remedies. The CIA requires Parkland to enact and report to the OIG its compliance with billing rules, but also will monitor Parkland to ensure patients receive appropriate care.

The case was handled by Assistant U.S. Attorney Sean McKenna and Assistant Texas Attorney General Paula Juba. The case is captioned United States ex rel. Kyri v. Dallas County Hospital District d/b/a Parkland Health and Hospital System, et al.; Civil Action No. 3:10-cv-0487-D (N.D. Tex.).

Law Enforcement Discovered More Than 33 Kilograms of Meth in Vehicle

AMARILLO, Texas — Today, Delmy Nohemy Hernandez, 36, aka Delmy Nohemy Pena De Hernandez, was sentenced by U.S. District Judge Mary Lou Robinson to 133 months in federal prison following her guilty plea in March 2013 to one count of conspiracy to possess with intent to distribute methamphetamine. Yesterday, codefendant Lilia Rivera, aka Lilia Rivera-Martinez, 44, was sentenced by Judge Robinson to 97 months in federal prison. Rivera pleaded guilty to the same offense. The announcement was made today by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

According to documents filed in the case, Rivera was introduced to Hernandez in October 2012 by a mutual friend. Hernandez offered Rivera an opportunity to transport controlled substances. That same month, they began making plans to transport controlled substances by vehicle for a male acquaintance. The controlled substances would be concealed in the vehicle and the women would be paid for transporting it.

In December 2012, Rivera and Hernandez, both residents of Amarillo, went to the Potter County tax office and registered a vehicle in Rivera’s name. The vehicle, a SUV, had been purchased by the male acquaintance who gave them cash to pay for the SUV’s registration, even though he maintained possession of it.

On December 18, 2012, the male acquaintance advised Hernandez and Rivera that they would be making a trip in the SUV to transport a controlled substance. Rivera was to be paid for transporting the substance and Rivera told Hernandez that she would give her some of the money.

On December 20, 2012, Rivera and Hernandez were stopped by law enforcement on U.S. 287 in Carson County, as they were headed to Houston, knowing that they were transporting a controlled substance. During that traffic stop, law enforcement asked the vehicle’s driver, Rivera, for consent to search the vehicle. Subsequently law enforcement discovered 33.6 kilograms of methamphetamine secreted in the vehicle. Rivera and Hernandez were arrested and have been in custody since that time.

The case was investigated by the Drug Enforcement Administration, the Texas Department of Public Safety, the Armstrong and Carson County Sheriff’s Offices and the Amarillo Police Department. Assistant U.S. Attorney Vicki Lamberson was in charge of the prosecution.

Defendant Also Ordered to Pay Nearly $700,000 in Restitution

DALLAS — Olalekan Sorunke, 40, of Rowlett, Texas, was sentenced today by U.S. District Judge Jorge A. Solis to 30 months in federal prison and ordered to pay $691,175 in restitution, following his guilty plea in February 2013 to one count of health care fraud, stemming from the operation of his business, Lincoln Medical Supply, Inc. (Lincoln), in Dallas. Judge Solis ordered that Sorunke surrender to the Bureau of Prisons on July 10, 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, Lincoln was a durable medical equipment (DME) supply company. As its owner/operator, Sorunke maintained a valid Medicare group provider number to submit Medicare claims for DME. Sorunke submitted Medicare claims that were not medically necessary or were not provided to Medicare beneficiaries. In one instance, for example, in July 2009, Sorunke submitted a claim to Medicare for providing a heavy-duty wheelchair to a beneficiary, when he knew that this beneficiary did not need a wheelchair, much less a heavy-duty wheelchair. He fraudulently billed Medicare $7,689 for that claim.

In total, Sorunke’s scheme resulted in a loss of $691,175. Sorunke used the fraudulently obtained funds for his own personal use.

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

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,500 defendants who have collectively billed the Medicare program for more than $5 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.

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

DALLAS — Christopher Stephens, 34, appeared in federal court today in Wichita Falls, Texas, before U.S. Magistrate Judge Robert K. Roach, on a criminal complaint related to several threats he allegedly made to blow up federal buildings in the Dallas-Fort Worth metroplex, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Stephens, who resided at the North Texas State Hospital (NTSH) in Wichita Falls, was ordered detained, pending a probable cause and detention hearing that will be set at a later date and held before U.S. Magistrate Judge David L. Horan in federal court in Dallas.

According to the affidavit filed with the complaint, the Wichita Falls Police Department’s (WFPD) communications center received telephone calls, one on March 5, 2013, and one the following day, from a caller who identified himself as “Gerald Adams.” In those calls, the caller threatened to blow up the U.S. Courthouse in Dallas. During the second phone call, the communications operator asked the caller if he was located at the NTSH, and the caller said that he was.

Law enforcement contacted an individual with a similar name who resided at the NTSH; however, it was determined that this individual was not the one who made the telephonic bomb threats. This individual stated that he believed the caller was another resident of NTSH, Christopher Stephens. He explained that Stephens became fascinated with his ex-wife, who had visited on several occasions, and that Stephens had alluded to making contact with her upon his release. The individual believed that Stephens used his name to sabotage his release date.

On March 7, 2013, the WFPD’s communication center received a third bomb threat. During that call, Stephens advised that a bomb had been planted at the U.S. Courthouse in Fort Worth. The operator kept Stephens on the line long enough for WFPD officers to go to NTSH and observe Stephens on the phone speaking with the WFPD. Stephens didn’t deny making the bomb threat.

NTSH provided the officers with letters from Stephens. One letter was addressed to a WFPD officer and one was addressed to the FBI. Both letters provided a detailed description of how Stephens would blow up a federal courthouse, what materials he would use to make the bomb and how it would detonate. Stephens also wrote racial comments in the letter and included Nazi SS symbols.

On March 25, 2013, the FBI Dallas Field Division received a letter, via the U.S. Postal Service, signed by Stephens. That letter read, “I will blow up the Federal Courthouse in Fort Worth, Texas.” On April 3, 2013, the WFPD received a mailed bomb threat from Stephens that mirrored the one sent earlier to the FBI, with the exception that the letter depicted three Nazi Swastikas and the words “White Power.”

A federal complaint is a written statement of the essential facts of the offense charged, and must be made under oath before a magistrate judge. 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. Stephens is charged with one count of using to the mail to willfully make a threat to unlawfully damage or destroy a federal courthouse by means of an explosive. That offense as charged carries a maximum statutory penalty 10 years in federal prison and a $250,000 fine, per count.

The matter is being investigated by the FBI and the WFPD. Assistant U.S. Attorney Kate Pfeifle and Deputy Criminal Chief Assistant U.S. Attorney Gary Tromblay are prosecuting.

Arrests are Part of IRS’s Stolen Identity Refund Fraud (SIRF) Initiative

DALLAS — Four individuals remain in federal custody on charges related to their involvement in a scheme to obtain and use stolen identities to steal federal income tax refunds. The four men, Michael Hutchinson Agu, 38, of Murphy, Texas; Benjamin Kinyua, 34, of Plano, Texas; Thomas Nganga Muya, of Atlanta, Georgia; and Harry Fabrice Cheickh Amont, 29, of Lithonia, Georgia; were arrested in an operation conducted by special agents with Internal Revenue Service Criminal Investigation (IRS-CI). They have all made their initial appearances before a U.S. Magistrate Judge, where identifying information was provided, and have been detained pending further order of the Court. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

Agu and Kinyua are each charged, in separate complaints, with identity theft, theft of government funds and aiding and abetting. A separate complaint charges Muya and Amont with theft of government funds and aiding and abetting.

According to the affidavits filed with the complaints, in recent years, identification theft schemes have become more sophisticated, more prevalent and increasingly more popular with criminals as a way to obtain illegal funds with little risk of detection or prosecution. Identification theft schemes often involve a network of individuals needed to complete different stages or aspects of the scheme. The affidavits further note that often perpetrators of identity theft cases are securing false identities, filing false tax returns, securing false tax refunds and moving on within days or weeks. Many of the ID theft schemes involve foreign nationals operating within and outside of the U.S, according to the affidavits.

According to the affidavits filed with the complaints, in recent years, identification theft schemes have become more sophisticated, more prevalent and increasingly more popular with criminals as a way to obtain illegal funds with little risk of detection or prosecution. Identification theft schemes often involve a network of individuals needed to complete different stages or aspects of the scheme. The affidavits further note that often perpetrators of identity theft cases are securing false identities, filing false tax returns, securing false tax refunds and moving on within days or weeks. Many of the ID theft schemes involve foreign nationals operating within and outside of the U.S, according to the affidavits.

The complaints outline the fencing of stolen IRS refund checks, including a United States Treasury check for an IRS refund in the amount of almost $600,000 that was were obtained using stolen identification information. The defendants worked as brokers or check cashers –cashing these checks for a percent of their face value.

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 penalty, upon conviction, for the charged offense of identity theft is 15 years in federal prison and a $250,000 fine. The penalty, upon conviction, for the charged offense of theft of government funds is 10 years in federal prison and a $250,000 fine.

IRS-CI is investigating. Assistant U.S. Attorney Christopher Stokes is in charge of the prosecution.

DALLAS — Three of the four individuals who pleaded guilty last year to their roles in a conspiracy to unlawfully disclose and obtain sensitive government contract information, were sentenced today in federal court in Dallas by U.S. District Judge Reed C. O’Connor, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

U.S. Attorney Saldana said, “The public deserves to have absolute confidence that government employees are honest and above reproach in their dealings with government funds and private contractors. This prosecution sends a strong message that they will be held accountable for their betrayal of the public trust.”

John Torrance Gilmore, III, 53, of Wichita Falls, who was the Lead Supervisory Engineer at Sheppard Air Force Base (SAFB), and the most culpable in the scheme, was sentenced 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.

Another former employee at SAFB, Larry Thomas Ballard, 60, also of Wichita Falls, pleaded guilty to the same offense and is scheduled to be sentenced on July 19, 2013.

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. All three defendants must surrender to the Bureau of Prisons on June 20, 2013.

As the Lead Civil Engineer in the Civil Engineering Squadron’s engineering department, Gilmore 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 several contracts’ specifications, 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 took him to several gun shows and paid his travel expenses.

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.

Assistant U.S. Attorney David Jarvis is in charge of the prosecution.

DALLAS — Estela Martinez, 53, of Dallas, made her first appearance in federal court this afternoon for the felony offense of bankruptcy fraud, as charged in an indictment returned by a federal grand jury in Dallas earlier this week. She pleaded not guilty and U.S. Magistrate Judge David L. Horan released her on bond. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

The indictment alleges that from January 2011 through November 2012, Martinez filed several fraudulent bankruptcy petitions concerning, or in relation to, bankruptcy proceedings. She also allegedly made several false, fraudulent and material statements regarding her social security number in four Chapter 13 voluntary bankruptcy petitions. The indictment further alleges that Martinez repeatedly sought to defraud her creditors, by her efforts to delay, and frustrated the ability of the mortgage holder to foreclose on her residence.

A federal indictment is an accusation by a grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, the offense of bankruptcy fraud carries a maximum statutory penalty of five years in federal prison and a $250,000 fine.

The investigation is being conducted by the Social Security Administration Office of the Inspector General. Assistant U.S. Attorney David Jarvis is in charge of the prosecution.

FORT WORTH, Texas — Following a two-day trial in federal court in Fort Worth, Texas, before U.S. District Judge John McBryde, a federal jury has convicted Jermaine Duane Irvin, 41, on a superseding indictment charging one count of conspiracy to possess with intent to distribute 50 grams or more of methamphetamine. Irvin, who has been in custody since his arrest at his home in Arlington, Texas, on February 28, 2013, faces a statutory penalty of 10 years to life in federal prison and a $5,000,000 fine. He is scheduled to be sentenced on September 13, 2013 by Judge McBryde. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

Irvin and four others, Christopher Gamez, of Arlington; Osamu John Hack of Grand Prairie, Texas; Maria Guadalupe Contreras; and Alex Plasencio III, also of Arlington; were charged with running the conspiracy to distribute methamphetamine in the Arlington area from August 2012 to late February 25, 2013. Gamez, Contreras, Hack and Plasencio were arrested in late February 2013 and have each pleaded guilty to one count of conspiracy to possess with intent to distribute methamphetamine.

This Organized Crime Drug Enforcement Task Force (OCDETF) case was investigated by the Drug Enforcement Administration and the FBI. Assistant U.S. Attorneys Josh Burgess and Shawn Smith are in charge of the prosecution.

DALLAS — Sussette Sheree Timmons, 30, of Dallas, was indicted by a federal grand jury yesterday on multiple counts of financial aid fraud, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

The indictment alleges that Timmons applied for and received financial aid from six schools that offered distance learning programs via the Internet. Timmons allegedly never intended to use the disbursed financial aid funds for education and instead intended to embezzle, misapply, steal and obtain the funds for her own personal use.

Timmons applied for, and received financial aid from: New Mexico State University, Western New Mexico University, Ashford University, Northern New Mexico College, Coconino Community College and Pima Community College. She enrolled in classes at the schools and the awarded financial aid was applied to her tuition and fees.

As part of the financial aid, Timmons also received disbursement checks which she cashed, even though she had no intention of using those funds for authorized educational expenses and purposes. The indictment further alleges that Timmons not only did not intend to complete, but she did not complete any of the classes for which she enrolled, and she did not intend to pursue an education at the schools. When asked by the institutions to return or refund the financial aid, she refused. In 2011, when one of the schools suspended her financial aid, Timmons appealed. That school rejected her appeal, stating that she had withdrawn from 13 colleges or universities since 2009.

A federal indictment is an accusation by a grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. The indictment charges Timmons with six counts of financial institution fraud. If convicted, each count carries a maximum statutory sentence of five years in federal prison and a $250,000 fine. In addition, restitution could be ordered.

The case is being investigated by the U.S. Department of Education Office of Inspector General. Assistant U.S. Attorney P.J. Meitl is in charge of the prosecution.

Next Sentencings Set for June 7, 2013

WICHITA FALLS, Texas — On Friday, May 17, 2013, four additional defendants, who pleaded guilty to their respective roles in a major methamphetamine distribution conspiracy that operated in Wichita Falls, were sentenced by U.S. District Judge Reed C. O’Connor, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

The following defendants were sentenced on Friday:

• Anthony DiPalma, 32, sentenced to 188 months
• Jason Brent Hoffman, 36, sentenced to 120 months
• Debra McCulloch, 59, sentenced to 50 months
• McKayla Fondren, 21, sentenced to 24 months

DiPalma and Fondren each pleaded guilty to one count of possession with intent to distribute and distribution of methamphetamine. Hoffman admitted being a felon in possession of a firearm and McCulloch pleaded guilty to one count of conspiracy to possess with intent to distribute and to distribute and to possess with intent to manufacture and manufacture methamphetamine.

DiPalma admitted that on March 28, 2012, he possessed with intent to distribute and distributed five grams or more of methamphetamine.

Hoffman, who has both state and federal drug convictions, admitted that in October 2011, he possessed a 9 mm pistol, which he sold to an undercover agent.

McCulloch admitted that on multiple occasions between June and September 2012, she distributed, and facilitated the ability of co-conspirators, to distribute methamphetamine. She also admitted allowing co-defendants Steve Ysasaga and David Calandreli to store quantities of methamphetamine, as well as proceeds from the sale of the methamphetamine, at her residence on 30th Street in Wichita Falls.

Fondren admitted that in June 2012, when officers with the Wichita Falls Police Department executed a state search warrant at her residence on Dee Drive in Wichita Falls, they found more than 15 grams of methamphetamine, as well as a digital scale and a small tub of MSM, a substance used to dilute or cut methamphetamine.

Several more defendants convicted in the conspiracy are scheduled to be sentenced on June 7, 2013. To date, 29 of the 30 defendants charged in this conspiracy have entered guilty pleas; a total of 19 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 Norvell Moss a Licensed Pharmacist at Grapevine DrugMart

FORT WORTH, Texas — Norvell Moss was sentenced on Friday by U.S. District Judge John McBryde to 18 months in federal prison and ordered to pay a $30,000 fine and additional restitution of $8,277, to go along with the more than $94,000 he paid prior to sentencing, following his guilty plea in January 2013 to one count of income tax evasion. Judge McBryde ordered Moss to surrender to the Bureau of Prisons on June 7, 2013. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

According to the felony Information filed in the case, Moss is a resident of Colleyville, Texas. The factual resume states that Moss is a licensed pharmacist and works as the head pharmacist for Grapevine Drug Mart, a family-owned and operated pharmacy in Grapevine, Texas.

The stipulated facts included in the factual resume note that Moss received quarterly and weekly payment of income drawn on Grapevine Drug Mart’s business accounts. The quarterly payments, generally received three to five times per year, varied in amounts ranging from $20,000 to $100,000. These payments were made payable to Mossman Management, dba Moss established in Tarrant County, and deposited into Mossman Management’s business bank account. The weekly payments (checks) were much smaller and were made payable to Moss or Mossman Management. From October 2006 through December 2008, Moss cashed the weekly checks.

The factual resume further stipulates that Moss willfully attempted to evade the amount of income tax he owed for tax year 2008 by failing to report approximately $194,150 that he received from Grapevine Drug Mart for that year. As a result of not reporting all of his income received, Moss had an additional tax due and owing of $58,233 for that year.

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 awaiting sentencing.

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.

Multiple Bullets Struck and Damaged Aircraft

WICHITA FALLS, Texas — Stephen Paul Riley, 41, of Olney, Texas, was sentenced this morning by U.S. District Judge Reed C. O’Connor, in federal court in Wichita Falls, Texas, to 120 months in federal prison and ordered to pay $3600 in restitution, following his guilty plea in January 2013 to an Indictment charging one count of destruction of an aircraft. Riley has been in federal custody since his arrest on May 10, 2013, for violating the conditions of his pretrial release. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

According to documents filed in the case, at approximately 11:40 a.m., on February 22, 2008, as a pilot flew his crop-dusting aircraft over property adjacent to the Flying Lead Ranch (FLR), a commercial hunting and residential property owned and occupied by Riley, Riley shot the aircraft with a firearm, striking it with multiple bullets and damaging the aircraft. One bullet struck the rudder cable and nearly severed it. A bullet or bullet fragment also struck the V-strut bar, approximately one and one-half inches from the connector bolt. Bullets, or bullet fragments, caused a hole in the aircraft’s left rear wing and indentations on the plane’s left side. The bullet holes and other damage indicated that the aircraft had been shot by someone on the ground discharging a firearm upward into the air. The aircraft was leased by Keeter Aerial Spraying, of Olney, for commercial crop-dusting services in Texas and Oklahoma.

Documents filed further state that prior to the above-stated date, Riley threatened Keeter’s owner, both in person and by phone, that he would shoot down any crop-duster that flew over his hunting ranch. In August 2010, officials with Texas Parks and Wildlife, seeking evidence of illegal hunting, executed a search warrant at the FLR and discovered a disc that contained video footage of Riley firing approximately 23 shots at another Keeter aircraft spraying the same field in July 2007. In September 2010, when questioned by a Texas Ranger, Riley admitted to shooting at Keeter aircraft on more than one occasion, as he had threatened to do.

The case was investigated by the Texas Rangers and the Texas Parks and Wildlife Department. Assistant U.S. Attorney Katherine Miller prosecuted.

LUBBOCK, Texas — Donnie Wright, 53, of Lubbock, Texas, was sentenced today by U.S. District Judge Sam R. Cummings to 37 months in federal prison and ordered to pay $385,356 in restitution following his guilty plea in February 2013 to one count of bank embezzlement by a bank employee. Judge Cummings ordered that Wright surrender to the Bureau of Prisons on June 20, 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, Wright was employed by Bank of America in Lubbock, as a Branch Manager at the 5144 82nd Street location. The factual resume states that Wright was a member of the Board of Deacons and Trustee at Community Baptist Church (CBC) in Lubbock. Beginning in May 2006 and continuing to January 24, 2010, Wright used his position as a Bank of America employee to embezzle funds owned by CBC and entrusted to the custody and care of Bank of America. He employed a variety of methods to embezzle the funds, including embezzling from CBC’s Certificates of Deposits held at the bank; making cash withdrawals from CBC’s accounts using debit (withdrawal) tickets; and fraudulently drawing checks on CBC’s checking account.

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

NCPC to Unveil its New Public Education Campaign to Protect Seniors from Crime

DALLAS — U.S. Attorney Sarah R. Saldaña of the Northern District of Texas and Ann M. Harkins, the President and CEO of the National Crime Prevention Council, will speak at an information and health fair for seniors that is being held tomorrow, Thursday, May 16, 2013, from 10:00 a.m. to 1:00 p.m. at Eddie Deen’s Ranch on South Lamar Street in Dallas. This is the 19th year that this free event, sponsored by the Dallas Area Rapid Transit (DART), the Dallas Area Agency on Aging and Eddie Deen’s, is being held.

U.S. Attorney Saldaña said, “Protecting older Americans is a top priority that the Department of Justice advances on multiple fronts. Our goal is to empower older persons, and the communities where they reside, with relevant information and resources to ensure that they can live in safe and healthy environments – something we all deserve. I’m thrilled to participate in this year’s event, and I commend DART, the Dallas Area Agency on Aging, Eddie Deen’s and all our community partners who make this information and health fair such a success.”

Ms. Harkins said, “NCPC is pleased to be a part of this event and to share our new public education campaign about protecting senior citizens from financial fraud and physical or emotional abuse. The last thing on the minds of our seniors should be the worry of losing a lifetime of savings or being abused by those they trust. We each play a pivotal role in preventing crimes against seniors and empowering our older Americans to speak up and speak out against fraud and abuse.”

The theme for this year’s Older American’s Month is “Unleash the Power of Age!’ Since 1963, May has been designated as the month to appreciate and celebrate the vitality and aspirations of older adults and their contributions and achievements. At the event, numerous vendors will provide free information and services and fair participants will enjoy free health screenings, materials, entertainment and refreshments provided by various community partners. WFAA anchor Gloria Campos is the event’s special guest, and Dallas County Sheriff Lupe Valdez will join U.S. Attorney Saldaña and Ms. Harkins as other honored guests.

DALLAS — This afternoon, Johnny Charles Butler, 45, appeared before U.S. District Judge Jorge A. Solis and pleaded guilty to two counts of armed bank robbery, one count of assaulting a federal officer and one count of using and carrying a firearm during and in relation to a crime of violence. His brother, James Robert Cleveland Butler, 44, pleaded guilty in February 2013 to two counts of armed bank robbery and one count of using, carrying and brandishing a firearm during and in relation to, and possession of a firearm in furtherance of a crime of violence. Both have been in custody since their arrest in August 2012 at their residence in Quinlan, Texas. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

If the Court accepts the terms of the plea agreements, the parties agree that the appropriate term of imprisonment is 35 years in federal prison for Johnny Charles Butler and 25 years imprisonment for James Robert Cleveland Butler.

According to documents filed in the case, both Johnny Butler and James Butler admitted committing the armed, takeover-style robberies of Bank of America, 100 West Highway 80, Forney, Texas, on November 25, 2011 and May 18, 2012.

Johnny Butler also admits firing three shots from a .357 caliber pistol at SWAT agents while they were attempting to execute a federal search warrant at his Quinlan residence on August 2, 2012.

The investigation was conducted by the Safe Street Violent Crime Task Force of the FBI. The case is being prosecuted by Assistant U.S. Attorney Keith Robinson.

Defendant Also Worked at First Baptist Church in Lubbock, Texas

LUBBOCK, Texas --- Trevor Jacob Fortner, 25, of Lubbock, Texas, made his first appearance in federal court in Lubbock, Texas, this morning, before U.S. Magistrate Judge Nancy M. Koenig, following his arrest on a federal complaint charging attempted enticement of a minor. He was ordered detained, pending a detention hearing set for May 15, 2013. Today’s announcement was made by U.S. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

Fortner is a youth minister at the Fifth Street Baptist Church in Levelland, Texas, and he also works at the First Baptist Church in Lubbock, in its publications and graphics department.

According to the affidavit filed in the case, a detective with the Lubbock Police Department (LPD), working in an undercover capacity and posing as a 15-year-old female, “Katy,” encountered an individual via the Internet, later identified as Fortner, who purported to be a 26 year-old married male. “Katy” provided Fortner a telephone number and a new email address and Fortner began sending “Katy” text messages from his cellphone. On May 7, 2013, Fortner sent “Kay” an image of his facial profile as well as a sexually-explicit image. Fortner sent sexually explicit text messages to “Katy,” and ask “Katy” to send him a “dirty pic.” Fortner was arrested by the FBI and LPD on May 8, 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 Life 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, the LPD and the LPD’s Internet Crimes Against Children (ICAC) Task Force. Assistant U.S. Attorney Justin Cunningham is prosecuting.

WICHITA FALLS, Texas — Today, another four defendants, who pleaded guilty to their respective roles in a major methamphetamine distribution conspiracy that operated in Wichita Falls, were sentenced by U.S. District Judge Reed C. O’Connor in federal court in Wichita Falls, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

The following defendants were sentenced today:

• Dock Buckaloo, 39, sentenced to 100 months
• Clinton Dois Clark, 34, sentenced to 100 months
• Andrew Spears, 25, sentenced to 60 months
• Marty Danelle Thomas, 27, sentenced to 46 months

Buckaloo, Clark and Spears each pleaded guilty to one count of conspiracy with intent to distribute and to distribute methamphetamine; Thomas pleaded guilty to one count of being a felon in possession of a firearm.

Buckaloo admitted that on multiple occasions between February and August 2012, he acquired pound and multi-pound quantities of methamphetamine from supply sources, including co-defendant Sergio Arias, and delivered pound and multi-pound quantities of methamphetamine to customers, including co-defendant Steve Ysasaga.

Clark admitted that on multiple occasions between May and July 2012, he received quantities of methamphetamine from Ysasaga. Specifically, during this period, Clark purchased half-ounce quantities of methamphetamine for $600 every day, for three weeks, from Ysasaga. Clark, however, fell behind in paying Ysasaga, and by mid July 2012, he owed Ysasaga approximately $1600. In late July, Clark burglarized a house in Throckmorton County and stole three firearms, which he gave to Ysasaga to try to pay off the $1600 drug debt.

Spears admitted that he received methamphetamine from Ysasaga, which he delivered to customers in the Wichita Falls area. When a state search warrant was executed as his residence in November 2011, officers recovered digital scales and methamphetamine.

In August 2012, when the manager for a hotel in Wichita Falls was inspecting unoccupied rooms, he found Thomas in one of the rooms which was supposed to be vacant. The manager called the police, who discovered that Thomas, a twice-convicted felon, had a .45 caliber semi-automatic pistol in her possession.

Last Friday, May 3, 2013, the following five defendants, who pleaded guilty to their respective roles in the conspiracy, were sentenced by Judge O’Connor as follows:

• Franklin D. Hubbard, 49, sentenced to 60 months
• Tommy James Vasquez, 39, sentenced to 70 months
• Brandi Kay Jennings, 38, sentenced to 96 months
• James Allen Stafford, 44, sentenced to 120 months
• Jesse Carl Langford, 36, sentenced to 137 months

To date, 29 of the 30 defendants charged in this conspiracy have entered guilty pleas; a total of 15 defendants have been sentenced. The cases against two of the defendants have 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.

Theresa Portillo Was Chief Executive Officer at the Now Defunct WSFCU

DALLAS – Theresa Portillo, 44, of Dallas, was sentenced today by U.S. District Judge Barbara M. G. Lynn to 78 months (six and one-half years) in federal prison and ordered to pay $3,431,000 in restitution, following her guilty plea in January 2013 to a felony Information charging one count of embezzlement of funds from a credit union. Portillo voluntarily agreed to forfeit nine parcels of real estate in the Dallas-Fort Worth area, a time share in Cabo San Lucas, Mexico, and personal property including diamond jewelry and four luxury watches. Judge Lynn ordered that Portillo surrender to the Bureau of Prisons on July 16, 2013. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

At this morning’s sentencing hearing, the former Chairman of the Women’s Southwest Federal Credit Union (WSFCU) testified that Portillo’s embezzlement scheme caused the credit union to become insolvent and bankrupt. She further explained that the unique mission of the WSFCU was to provide financial assistance to low income women, and that as a result of the scheme, the credit union failed and is no longer available to help poor women in need of financial aid.

According to documents filed in the case, from 2001 to October 2012, while employed at the WSFCU, including the time she served as its Chief Executive Officer, Portillo used deception to fraudulently obtain at least $3,421,000 from 18 different financial institutions in connection with her sale of several certificates of deposits (CDs). She used online services to contact several financial institutions interested in purchasing CD accounts at the credit union.

When a financial institution was willing to purchase a CD, Portillo gave the financial institution wiring instructions to send the purchase funds to a JP Morgan Chase account in the name of the credit union. Portillo used this Chase account to conceal the embezzlement because she knew that credit union officials thought the account was inactive; the account wasn’t recorded on the credit union’s general ledger; and she had sole control of the account. Portillo also concealed her theft of stolen credit union funds by opening a separate credit union account using a false and fictitious name. Portillo avoided detection of the scheme by writing checks using this fictitious name to disburse stolen credit union funds.

After the financial institutions wired funds into the Chase account, Portillo fraudulently disbursed and used these embezzled and stolen credit union funds to purchase motor vehicles, real property and jewelry for her personal use, as well as for family and friends. She also used embezzled funds to pay credit card bills; fund many vacations throughout the U.S., Mexico and Europe; pay family medical expenses; and remodel houses.

The case was investigated by the FBI. Assistant U.S. Attorney David Jarvis prosecuted.

Defendant Jeffrey J. Sykes Also Ordered to Pay Nearly $17 Million in Restitution

FORT WORTH, Texas — Jeffrey J. Sykes, 54, of San Bernadino County, California, was sentenced this morning by U.S. District Judge John McBryde to 120 months in federal prison and ordered to pay $16,867,037 in restitution, following his guilty plea in January to two counts of securities fraud stemming from a Ponzi scheme he ran. Sykes, who was the owner of Gemstar Capital Group, Inc. (Gemstar), a California-based private equity company, was ordered to surrender to the Bureau of Prisons by May 24, 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, Sykes owned and operated Gemstar out of Redlands, California. In 2006, Sykes and “M.K.,” of Westlake, Texas, met at a golf tournament. Sykes told M.K. that Gemstar was a venture capital company interested in investing in emerging growth companies and that Gemstar was looking to supplement its planned venture capital operations by engaging a brokerage firm to assist it in buying and selling U.S. Treasury Bills (T-Bills).

M.K. asked Sykes whether he could participate, and in April 2007, Sykes and M.K. entered into an agreement in which M.K. solicited investors to participate in the T-Bill trading program described by Sykes. The next month, M.K. formed a limited liability company, known as KCG, and began to solicit investors. Using information Sykes provided, M.K. secured approximately 37 investors who invested more than $20 million. M.K. sent the money, minus fees he withheld for himself, to Gemstar to be invested by Sykes. However, unbeknownst to the investors, neither KCG nor Gemstar was engaged in any T-Bill trading program at the time of M.K.’s solicitations.

In addition to the funds that M.K. raised, Sykes personally raised more than $20 million from investors by making representations about a T-Bill trading program that were materially false or omitted material facts. In fact, none of the money was invested in a T-Bill trading program. Instead, Sykes and M.K. used some of the money for personal expenses. Some of the money was invested in ventures that the investors were unaware of and had not given their consent to participate in. Some of the money was returned to investors, although in some cases, Sykes falsely claimed that the funds represented the return of capital and/or profits from the T-Bill trading program.

Although Sykes used some of the investments he received for personal expenses, to pay partners, and for other purposes, he held a large portion of the invested funds in low-risk money market accounts. Because a substantial portion of investor funds were held in these accounts, investors were able to recover some of their investments.

Accounting for payments made to investors during the course of the scheme and money returned to investors after the termination of the scheme, investors collectively lost approximately $16,867,037. This amount includes losses incurred by the investors solicited by M.K., whose funds he subsequently sent to Sykes after taking a fee for himself.

The two counts of securities fraud to which Sykes is pleading specifically stem from false Gemstar account statements that Sykes used to deceive investors about the value of their investments.

This prosecution is 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 http://www.stopfraud.gov/.

The case was investigated by the U.S. Postal Inspection Service and the FBI.

DALLAS — Ruben Jimenez Martinez, 36, of Garland, Texas, appeared in federal court this afternoon, before U.S. Magistrate Judge Irma C. Ramirez, on a federal criminal complaint stemming from his unauthorized entrance into a restricted area of Dallas Love Field Airport on Sunday evening, April 28, 2013. He was ordered detained. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

Specifically, the felony complaint charges Jimenez with entering aircraft or an airport area in violation of security requirements. The offense as charged, upon conviction, carries a maximum statutory penalty of up to 10 years in federal prison and a $250,000 fine.

According to the complaint filed, Jimenez, driving a 2007 Chevrolet Tahoe, pulled onto the Dallas Love Field Airport property where private aircrafts are housed. Jimenez approached the gate of a general aviation aircraft business and began pressing buttons on the gate’s access pad. While an employee opened the gate to engage Jimenez through the vehicle’s window, another employee parked his company SUV on the air operations side of the gate to prevent unauthorized vehicles from entering the restricted area. As that employee began to open the door of his vehicle, Jimenez evaded the vehicle and maneuvered around it at a high rate of speed.

Jimenez proceeded onto and down Taxiway Alpha at speeds estimated to be in excess of 100 miles per hour. The business’s employees were unable to catch up with Jimenez and requested assistance. Jimenez’s Tahoe was ultimately located at Associated Air Hanger 3. Jimenez walked through the hanger and, when officers with the Dallas Police Department arrived and cuffed him, he attempted to break free and additional officers arrived to assist in restraining him. Jimenez was arrested and agreed to speak to law enforcement. He advised that he believed God had directed him to Dallas Love Field and, that while he was in the hanger, he yelled “in the name of Jesus” three times.

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. The U.S. Attorney’s office has 30 days to present the matter to a grand jury for indictment. A defendant is entitled to the presumption of innocence until proven guilty.

The matter is being investigated by the FBI, the Transportation Security Administration, the Federal Air Marshal Service and the Dallas Police Department.

Assistant U.S. Attorney Errin Martin is in charge of the prosecution.

Fraud Resulted in More Than $10 Million in Fraudulently Obtained Loan Proceeds

DALLAS — On the day before their trial was to begin in federal court, Dallas residents, Eric Damon Johnson and Tracie Elaine Stenson, pleaded guilty to their roles in a mortgage fraud conspiracy that they ran in Dallas, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

Johnson, 51, pleaded guilty to a superseding information charging one count of conspiracy to commit wire fraud affecting a financial institution. According to the terms of his plea agreement, the government agreed to recommend a sentence of not more than 48 months; that recommendation, however, is not binding upon the Court. Johnson was a licensed loan officer and mortgage broker and the president of Bridgemark Investment Group (BIG), which had offices on Hampton Road in Desoto, Texas. BIG’s motto was “Bridging the Gap between the Poor and the Wealthy.”

Stenson, 50, pleaded guilty to one count of conspiracy to commit wire fraud, as charged in the indictment returned by a federal grand jury in Dallas in October 2011. According to the terms of her plea agreement, and if the Court accepts the terms of that plea agreement, the parties agree that a sentence of no more than 84 months in custody is the appropriate disposition of the case. As the Chief of Operations at BIG, Stenson worked as a loan officer and processor.

According to documents filed in the case, Johnson and Stenson conspired to fraudulently obtain mortgage loans in excess of the true sales price of residential real estate properties by making false statements on loan applications and submitting fake invoices for construction upgrades or repairs that were never performed. The conspiracy resulted in more than $10 million in fraudulently-obtained loan proceeds.

BIG recruited individuals to purchase residential real estate as “investors” and Johnson and Stenson promised investors that BIG would find tenants to rent the property and make the mortgage payments. Johnson and Stenson agreed to make payments to the “investors” when the loan closed that were not disclosed to the mortgage lender on the HUD-1 Settlement Statement. Stenson prepared false loan applications for the investors that included, among other things, material misrepresentations regarding the borrower’s monthly income, intention to occupy the property, assets and liabilities. The loan applications were submitted to residential mortgage lenders, who on the basis of the false statements in the loan applications, agreed to fund primary and secondary mortgages for residential real estate properties.

This case is being 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 investigation was conducted by the FBI and Internal Revenue Service Criminal Investigation. Assistant U.S. Attorneys J. Nicholas Bunch and P.J. Meitl are in charge of the prosecution.

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

AMARILLO, Texas — Edgar A Lockett, Jr., was arrested yesterday on felony charges outlined in a federal indictment returned by a federal grand jury earlier this month, and just unsealed, charging tax evasion. Lockett made his initial appearance this morning before U.S. Magistrate Judge Clinton E. Averitte, who remanded him into custody pending further proceedings set for this Thursday, May 2, 2013, at 9:30 a.m. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

According to the indictment, Lockett is a self-employed anesthesiologist who currently resides in Amarillo; he formerly resided and practiced in other cities in Texas, including Mineral Wells and McAllen. Currently, according to the indictment, Lockett bills under the name of Medical & Health Alliance Ministries.

The indictment alleges that Lockett has not filed income tax returns since 1999, except for a joint returned filed with his spouse for tax year 2007. The indictment alleges that for tax years 2000 through 2010, Lockett owes the United States $1,432,740 in unpaid income taxes.

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

A federal indictment is an accusation by a federal grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. Lockett is charged with six counts of tax evasion, and if convicted, each count carries a maximum statutory penalty of five years in federal prison and a $250,000 fine. In addition, restitution could be ordered.

The investigation is being conducted by Internal Revenue Service Criminal Investigation. Assistant U.S. Attorney Christy Drake is in charge of the prosecution.

DALLAS — Leroy Nelson, 61, of Duncanville, Texas, was arrested this morning by federal agents on felony charges, outlined in an indictment returned by a federal grand jury in Dallas last week and unsealed today, stemming from his alleged role in a multi-million dollar staged accident fraud scheme. Nelson made his initial appearance this afternoon before U.S. Magistrate Judge Irma C. Ramirez, who ordered him detained pending a detention hearing set for Wednesday at 2:00 p.m. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

Specifically, the indictment charges Nelson with six counts of mail fraud and six counts of engaging in illegal monetary transactions.

The indictment alleges that from at least 2005, Nelson, aided and abetted by others, devised a scheme to defraud multiple insurance companies by submitting false claims for fictitious automobile accidents. As part of the scheme, Nelson promised cash payments to individuals he recruited for them to falsely report to their automobile insurance company that, while driving, they damaged a piece of equipment that was on the road or that was being hauled by a trailer. Nelson provided scripts to these individuals that instructed them on how to report the damage to their insurance company.

Nelson fabricated the written claims and submitted them to insurance companies. The damaged equipment was described as very technical in nature, such as: a “Remote Aircraft Landing Marker,” a “chemical Pipeline Examiner” or a “Seismographic Probe.” The claims would include a fictitious repair estimate and a photograph of the equipment. The claimed repair expenses would usually be from $16,000 to $19,000.

When insurance companies paid the claims, checks would be mailed to an address that Nelson provided. He directed the insurance companies’ checks to either warehouses he owned in Duncanville or to private mail boxes he had opened in Minnesota, Missouri, Mississippi, Washington, Arizona, Connecticut and Louisiana. After establishing the mail boxes, Nelson directed that the mail be forwarded to his address on Explorer Street in Duncanville.

A federal indictment is an accusation by a grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, each of the mail fraud counts carries a maximum statutory penalty of 20 years in federal prison and a $250,000 fine; each of the engaging in an illegal monetary transaction counts carries a maximum statutory penalty of 10 years in federal prison and a $250,000 fine. In addition, restitution could be ordered. The indictment also includes a forfeiture allegation, which would require Nelson, upon conviction, to forfeit to the government proceeds traceable to the property as well as seven vehicles, including two Mercedes, a motor home, a boat and his residence on Explorer Road in Duncanville.

The investigation is being conducted by the FBI, Internal Revenue Service Criminal Investigation and the U.S. Postal Inspection Service. Assistant U.S. Attorney Christopher Stokes is in charge of the prosecution.

LUBBOCK, Texas — Jeffrey Hensley, 42, of Lubbock, Texas, was arrested and charged in a federal criminal complaint with robbing the Alliance Federal Credit Union in Lubbock. Hensley is set for an initial appearance tomorrow morning in Amarillo, Texas, before United States Magistrate Judge Clinton Averitte. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

According to the complaint filed, on September 14, 2012, Hensley entered the First United Bank in Lubbock and presented a note to the teller that stated, “DON’T MAKE ME SHOW MY WEAPON.” The teller gave the money to Hensley, who put the money in a black bank bag, and he exited the bank.

On December 8, 2012, Hensley entered the Plains Capital Bank in Lubbock and walked up to the teller carrying a dark-colored bank bag. He handed the teller a note that stated, “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!!” The teller handed Hensley a stack of bills and he took the cash and exited the bank.

On February 13, 2013, Hensley entered the Alliance Federal Credit Union in Lubbock, walked up to the teller and handed the teller a note and a pink-colored small cosmetic bag. The teller handed the bills to Hensley and he exited the bank. He was observed by a witness driving out of the bank parking lot in a small to mid-size white sport-utility vehicle.

On February 14, 2013, law enforcement authorities received a tip that an individual matching the description of the bank robber was named Jeff, and that he lived in an apartment at 1907 66th Street in Lubbock and drove a white sport-utility vehicle. Another tip was received on March 6, 2013, from an individual that stated the bank robbery suspect was named Jeffrey and that he drove a white four-door older model Toyota 4 Runner and lived in a house at 8608 Avenue X. A subsequent investigation revealed that Hensley resided in an apartment at 1907 66th street before moving to 8608 Avenue X. On April 22, 2013, a federal search warrant was executed at Hensley’s residence and he was arrested. Afterwards, according to the complaint, Hensley admitted to robbing the three banks in Lubbock.

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. If convicted of this offense, however, Hensley faces a maximum statutory penalty of not more than 20 years in federal prison, and a $250,000 fine. The U.S. Attorney’s office has 30 days to present the matter to a grand jury for indictment.

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

Defendant Faces 30 Years in Federal Prison

DALLAS — Billy Wayne Johnson, 55, of Scurry, Texas, appeared Friday in federal court in Dallas, before Chief U.S. District Judge Sidney A. Fitzwater, and pleaded guilty to a superseding information charging one count of transportation of child pornography and one count of possession of child pornography. According to the terms of the plea agreement, if the Court accepts the plea, the parties agree that the appropriate term of imprisonment is 30 years in federal prison. Johnson, who has been in custody since his arrest in February 2013 on a related federal criminal complaint, also faces up to a $500,000 fine and a lifetime of supervised release. Sentencing is set for August 2, 2013, before Judge Fitzwater. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

According to documents filed in the case, the investigation began in December 2012 when a special agent with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) was conducting an undercover investigation to identify persons who were distributing child pornography using peer-to-peer file-sharing and the Internet. The investigation revealed an IP address that was connected to Johnson.

Johnson admitted that he obtained images of child pornography from other peer-to-peer users/members in his private network of contacts, and that he downloaded, viewed and shared images of child pornography. A forensic evaluation of Johnson’s laptop and thumb drive that were seized revealed more than 1600 images and 194 videos of child pornography. Also located on his laptop were lewd and lascivious photographs, as well as a video, that he admitted taking of boys under age six. He further admitted that some of the images and videos he possessed depicted sadistic images of prepubescent minors. He also admitted that he engaged in several chats with other members of his peer-to-peer network in which he and the others discussed their interest in molesting and sexually assaulting children under the age of six.

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 is in charge of the investigation; Assistant U.S. Attorney Camille Sparks is in charge of the prosecution.

DALLAS — Jerry Goh, 50, a resident of Allen, Texas, appeared in federal court this morning before U.S. Magistrate Judge Irma C. Ramirez and pleaded guilty to a superseding information charging him with one count of misprision of a felony, stemming from his involvement in a loan fraud scheme in 2007. Goh, a lawyer with offices in the Dallas-Fort Worth metroplex, faces a maximum statutory penalty of three years in federal prison, a $250,000 fine and restitution. Sentencing is set for August 12, 2013. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

Two defendants also charged in the case, Plano, Texas, residents Vathany Theng and Lina Ma, have pleaded guilty to their roles in the fraud and are awaiting sentencing. According to documents filed in the case, Goh, acting in his capacity as the escrow officer on the loan, and thus with control of the loan proceeds, concealed from the lender, Prosper Bank, the fraudulent release of $498,720 of loan proceeds to provide funds for a $431,000 down payment. Goh wired $498,720 of lender Prosper Bank’s funds from an escrow account, knowing that these seller proceeds funds would later be used as the source of borrower Lina Ma’s down payment on her loan from Prosper Bank.

This case was 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 http://www.stopfraud.gov/.

The case was investigated by the U.S. Small Business Administration – Office of the Inspector General and the FBI. Assistant U.S. Attorney David L. Jarvis is in charge of the prosecution.

Defendant Operated “Instant Tax Services” in Dallas

DALLAS — George Chukwuka Chima was sentenced this morning by Chief U.S. District Judge Sidney A. Fitzwater to 30 months in federal prison and ordered to pay $776,341 in restitution, following his guilty plea in December 2012 to one count of aiding and assisting in the preparation of fraudulent federal income tax returns. Judge Fitzwater ordered that Chima, who has been on bond, surrender to the Bureau of Prisons on June 4, 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, Chima, a resident of Irving, Texas, operated a tax service business under the name “Instant Tax Services,” in Dallas. When Instant Tax Services prepared federal tax returns, Chima placed, or caused others to place, false and fraudulent claims for the First Time Home Buyer Credit (FTHBC) and Fuel Tax Credit (FTC) on numerous returns in order to fraudulently obtain refunds from the Internal Revenue Service (IRS). Chima admitted that he caused tax returns to include these false FTHBC and FTC credits that were completely fictitious and fraudulent, resulting in refund and credit overpayments by the IRS and unearned and fraudulent tax preparation fees paid to Chima.

Chima admitted, according to the factual resume, that from January 1, 2009, through April 15, 2010, he electronically filed, and caused others to electronically file, a total of approximately 795 individual income tax returns with the IRS. Of that number, approximately 505 contained fraudulent and false information, which caused a total loss to the IRS of approximately $776,341.

The case was investigated by IRS Criminal Investigation. Assistant U.S. Attorney David Jarvis was in charge of the prosecution.

CBP Air Interdiction Met Plane When it Landed in Lubbock

LUBBOCK, Texas — Two men, who flew into Lubbock and arrived at Lubbock Aero on Wednesday evening, April 17, 2013, Michael Gallanter, 48, and Ethan Oliver Wynne-Wade, 31, have been arrested and charged in a federal criminal complaint with possession with intent to distribute marijuana. Both men, residents of San Francisco, California, made their initial appearance in federal court this afternoon, before U.S. Magistrate Judge E. Scott Frost, who ordered them detained pending hearings set for next Wednesday, April 24, 2013. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

According to the complaint filed, law enforcement received intelligence that Gallanter filed a flight plan from Northern California to Atlanta, Georgia. Gallanter traveled as the pilot along with passenger Wynne-Wade on a Piper PA28-181 aircraft; the aircraft appeared to have been rented by Gallanter. The aircraft departed California on April 17, flew to the Page, Arizona, area to refuel and arrived at the Lubbock Aero airport at approximately 10:00 p.m. to again refuel.

U.S. Customs and Border Protection (CBP) Air Interdiction agents met Gallanter as he deplaned and per their request, Gallanter provided them with the appropriate flight paperwork. The plane was then searched by special agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and CBP Air Interdiction, as well as officers with the Lubbock Police Department (LPD) and the LPD’s canine unit. Several duffel bags that contained approximately 98 bundles of marijuana, four bundles of hash and two bundles of mushrooms, containing Psilocin or Psilocybin, were located in a compartment near the rear of the aircraft.

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 penalty for the charged offense is up to 20 years in federal prison, a fine not to exceed $1,000,000 and a term of supervised release of at least three years up to life.

The investigation is being conducted by ICE HSI, CBP Air Interdiction, the Drug Enforcement Administration and the Lubbock Police Department. Assistant U.S. Attorney Jeffrey R. Haag is in charge of the prosecution.