Northern District of Texas

DALLAS — Kenneth Santodomingo, aka “Juan Goel Pagan” and “Juan Joel Pagan,” 22, appeared this morning before U.S. District Judge Reed C. O’Connor and pleaded guilty to an indictment charging one count of aiming a laser pointer at an aircraft, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Santodomingo was arrested on January 28, 2013 after a criminal complaint was filed for the offense, and he has been in custody since that time. He faces a maximum statutory penalty of five years in federal prison and a $250,000 fine. The Court set Santodomingo’s sentencing hearing for July 25, 2013.

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

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

The case is being investigated by the DPD, the FBI and the Transportation Security Administration’s Federal Air Marshal Service. Assistant U.S. Attorney Katherine Miller is in charge of the prosecution.

FORT WORTH, Texas — Brett Joseph Barnes, 27, of Burleson, Texas, appeared in federal court on Friday and pleaded guilty to one count of bank robbery, admitting he robbed the Bank of America on South Crowley Road, in Crowley, Texas, in September 2009, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Barnes faces a statutory maximum penalty of 20 years in federal prison and a $250,000 fine. Sentencing is set for June 7, 2013, before Judge McBryde.

According to documents filed in the case, on Wednesday, September 16, 2009, an individual, later identified as Barnes, entered the Bank of America, located at 908 South Crowley Road, and holding what appeared to be a semi-automatic pistol, told everyone to get down and give him all the money. Barnes jumped the teller counter, approaching several tellers, and pointed the pistol at them, demanding and receiving money. After receiving the money, Barnes jumped back over the counter and ran from the bank.

When law enforcement searched the area, they discovered clothing items, including a bandana and sunglasses, near a residence in the direction in which Barnes fled. These items, which were identical to what the robber wore, were analyzed by the Tarrant County Medical Examiner’s Office and the DNA profile was entered into the Combined DNA Index System (CODIS). In January 2012, Barnes was located in the Dallas County Jail; his DNA and the DNA profile from the sunglasses and bandana matched.

The investigation was conducted by the Crowley and Burleson Police Departments and the FBI. Assistant U.S. Attorney John Bradford is in charge of the prosecution.

DALLAS — Two owners of Alliance Healthcare Services, L.P., a Dallas home health care agency, were sentenced today by U.S. District Judge Jane J. Boyle for their roles in a nearly $1.3 million health care fraud conspiracy, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Richardson, Texas, residents, George Opurum, 62, and his wife, Agatha Opurum, 55, were each sentenced to 37 months in federal prison. They were ordered to surrender to the Bureau of Prisons on March 27, 2013.

George Opurum was the chief financial officer and alternate administrator of Alliance. Edith Opurum was the Director of Nursing at Alliance. Co-conspirator Ernest Amadi, 55, was the chief executive officer of Alliance and his wife, Edith Amadi, 52, was a nurse at Alliance. Alliance was located on Estate Lane in Dallas.

The Amadi’s, residents of Wylie, Texas, also pleaded guilty to conspiracy to commit health care fraud. Edith Amadi was sentenced to 37 months in federal prison; a sentencing date has not been set for Ernest Amadi. Another co-conspirator in the case, Ollie Futrell, 57, of Garland, Texas, pleaded guilty to her role in the conspiracy and is currently serving a 33-month federal prison sentence.

The five defendants in the case billed a total of $1,296,357, and are ordered to pay restitution in the amount of $853,702.

According to documents filed in the case, as part of the conspiracy, from November 2008 through mid-February 2011, Alliance submitted claims to Medicare for home health services purportedly provided to Medicare beneficiaries. Alliance employees, including the owners, falsified Medicare documentation and skilled nursing notes indicating that the patients were homebound and eligible for home health care services. In fact, the majority of Alliance patients were not eligible for the services because they were not homebound. Alliance employees and owners falsified time sheets and patient visit logs for services that were not adequately rendered or were never provided at all. Alliance then billed Medicare as if the services were adequately provided.

Further, according to documents filed in the case, Alliance owners conspired with Futrell to recruit Medicare patients for the company so Alliance could increase its Medicare billing and revenue. Futrell, who was paid in cash by Alliance owners, recruited Medicare beneficiaries in a variety of ways and initiated Alliance services for them. She agreed to pay kickbacks — sometimes $100 a month — to patients so that they would continue to use Alliance. Alliance owners knew about, and at times facilitated, these kickbacks.

The case was investigated by the FBI, the Department of Health and Human Services Office of Inspector General (HHS OIG) and the Texas Attorney General’s Medicaid Fraud Control Unit.

Assistant U.S. Attorney Katherine E. Pfeifle of the U.S. Attorney’s Office in Dallas and Trial Attorney Benjamin A. O’Neil of the Fraud Section in the Justice Department’s Criminal Division are 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 1,480 defendants who have collectively billed the Medicare program for more than $4.8 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 Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: http://www.stopmedicarefraud.gov/

Defendant Downloaded Images of Children as Young as Two-Years-Old

DALLAS — Isaac Heredia Luciano, 25, of Garland, Texas, was sentenced this afternoon by U.S. District Judge Jane J. Boyle to 20 years in federal prison and a 10-year term of supervised release, following his guilty plea in November 2012 to an Information charging one count of transporting and shipping child pornography, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Luciano has been in federal custody since he surrendered to authorities in October 2012 on a related federal charge outlined in a criminal complaint.

According to documents filed in the case, a detective with the Garland Police Department who was working in an undercover capacity and using peer-to-peer file sharing program to investigate the distribution of child pornography, identified a computer that was sharing images of child pornography. In fact, on various dates from September 2011 until August 2012, the detective downloaded 27 images and videos of child pornography from that computer, including videos involving children as young as two-years-old, who could be heard on the videos crying and yelling “mommy.”

In late August 2012, a search warrant was executed at Luciano’s home in Garland and computers and related storage equipment were seized. Luciano admitted that he had been downloading child pornography, and in fact, had downloaded child pornography the previous day. He explained that he had a “sickness” with child pornography, admitted that videos he downloaded ranged from “diaper porn” to toddlers to teens, and that he possessed videos that included bondage and other sadistic acts involving minors.

This matter 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 Garland Police Department’s Internet Crimes Against Children (ICAC) Task Force and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Camille Sparks prosecuted.

DALLAS — A federal grand jury in Dallas has indicted Kenneth Santodomingo, aka “Juan Goel Pagan” and “Juan Joel Pagan,” 22, on one count of aiming a laser pointer at an aircraft, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Santodomingo was arrested on January 28, 2013 after a criminal complaint was filed for the offense, and he has been in custody since that time.

According to that complaint, at approximately 4:08 a.m. on January 28, 2013, Dallas Police Department (DPD) officers were operating a DPD helicopter over a residential area in Dallas when the cockpit was illuminated approximately four times by a laser pointer. The intensity of the light obscured the vision of the pilot and impaired the pilot’s ability to control the aircraft.

After the officers in the helicopter pinpointed the location where the laser originated, they directed patrol officers on the ground to a residence in the 7000 block of Lake June Road. Santodomingo answered the officers’ knock at the front door. He admitted having pointed the green laser light at the helicopter to see how far it would go and handed over the laser pointer to the officers at that time.

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

The case is being investigated by the DPD and the FBI. Assistant U.S. Attorney Katherine Miller is in charge of the prosecution.

LUBBOCK, Texas --- Nathan Derek McGinn, 33, of Brownwood, Texas, was sentenced today by U.S. District Judge Sam R. Cummings to 188 months in federal prison and a 10-year term of supervised release, following his guilty plea in November 2012 to one count of receiving child pornography, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. McGinn has been in custody since September 17, 2012.

According to documents filed in the case, McGinn used his computer, which was connected to the Internet, to access music and various forms of pornography through the use of file-sharing software. Specifically, McGinn used the software to collect and share hundreds of images of child pornography.

This matter 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 and the Texas Department of Public Safety. Assistant U.S. Attorney Steven M. Sucsy prosecuted.

DALLAS — Guy Martin Johnson, 56, of Addison, Texas, was sentenced today by U.S. District Judge Sam A. Lindsay to 12 years in federal prison and a lifetime of supervised release, following his guilty plea in November 2012 to one count of transportation of child pornography. Johnson has been in federal custody since he entered his guilty 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, the investigation began in late January 2012 when law enforcement officials in Florida were involved in an undercover investigation targeting individuals who prey on children on the internet using popular social media sites. An officer, acting in an undercover capacity, entered a chat room, posing as a mother who had a son interested in sex with an adult male. That same day a man, later identified as Johnson, contacted the “mother” and over the course of several days, chatted with the “mother” and expressed his desire to have sex with her 14-year-old son

A few days later, Johnson talked to the “mother” and asked her if she would like him to send her some videos and images of child pornography, and she agreed. At that time, Johnson sent the “mother,” over the internet, 21 images depicting the sexual exploitation of minors.

The undercover officer, still posing as the “mother,” continued the chats with Johnson and discussed Johnson traveling to Florida to meet her son to have sex with him. However, Johnson never did travel to Florida.

In May 2012, members of the Dallas Police Department’s Internet Crimes Against Children (ICAC) task force executed a search warrant at Johnson’s home; Johnson admitted that he chatted over the internet in a chat room to someone in Florida, but that it was all fantasy. An analysis of the computer equipment seized during the search revealed 149 images and two videos of child pornography. Johnson admitted that he distributed images to the “mother” that included bondage and other sadistic acts involving minors.

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

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

Banjo Player Was in Dallas to Perform With Country Music Band at Local Bar

DALLAS — Abraham Eugene Spear, 30, of Nashville, Tennessee, pleaded guilty this morning in federal court in Dallas, before Chief U.S. District Judge Sidney A. Fitzwater, to one count of attempted enticement of a minor. He faces a statutory penalty of not less than 10 years and not more than life in prison, a $250,000 fine and a lifetime of supervised release. Spear, who has been in federal custody since his arrest in September 2012, in Dallas, is to be sentenced by Judge Fitzwater on June 7, 2013. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

Spear admitted that from August 27, 2012, through September 20, 2012, he used the Internet and a cell phone to knowingly attempt to persuade an individual, whom he believed to be a seven-year-old girl, to engage in sexual activity. Spear, using the monikers of MUSICMAN30 and BANJOPAINE, communicated over several weeks with an undercover law enforcement agent, whom Spear believed to be the mother of two girls, ages seven and nine. During these communications, he persuaded, or attempted to persuade, the “mother” to allow him to meet her two girls to engage in different sexual acts with him. On September 20, Spear traveled from Tennessee to Dallas to perform with the Josh Thompson band at a bar in Dallas. That day, he agreed to meet the mom at a restaurant in Dallas, and after he was identified, he was arrested by special agents with the FBI. Spear admitted that many of the messages he sent were sexual in nature and geared toward the “mother’s” seven and nine-year-old daughters. Spear also admitted sending a sexually explicit photo of himself to the “mother,” asking what the girls would think of the photo.

Spear also admitted that he had engaged in sexually explicit communications with other mothers of minor girls, including one in which he offered to pay $200 to engage in sexual acts with the mother’s minor daughter.

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

The investigation was conducted by the FBI. Assistant U.S. Attorney Camille Sparks is in charge of the prosecution.

Defendant’s Father, Larry Lake, Was Convicted at Trial Last Week for Concealing Assets and Tax Evasion

FORT WORTH, Texas — On the day before his trial was to begin in federal court in Fort Worth, Texas, Travis Keith Lake appeared before U.S. District Judge John McBryde and pleaded guilty 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, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Lake faces a maximum statutory penalty of three years in federal prison and a $100,000 fine on each of the three counts; restitution could also be ordered. He will remain on bond pending sentencing, which is set for May 31, 2013.

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

Travis Lake’s father, Larry Lake, was convicted last week by a federal jury in Fort Worth on one count of concealment of assets (bankruptcy fraud) and three counts of tax evasion. According to the public court record, Larry Lake, also a Colleyville resident, owns and operates several businesses including VIP Finance of Texas, an auto title loan business with branches throughout the Dallas-Fort Worth area; Cash Auto Sales, which handles the auto club memberships for VIP Finance; and is a part owner of Grapevine Drug Mart. Following his conviction, Larry Lake was remanded into custody pending sentencing, which is also set for May 31, 2013, before Judge McBryde. He faces a maximum statutory penalty of five years in federal prison and a $250,000 fine on each count.

According to the factual resume filed in Travis Lake’s case, between 2006 through 2008, he received quarterly and weekly payments of income drawn on Grapevine Drug Mart’s business bank accounts. The quarterly payments were generally received three to five times per year and varied in amounts ranging from $25,000 to $100,000. Each quarterly payment was made payable to Certified Tech Services, a dba that Lake established, and deposited into Certified Tech Services’ business bank account. The weekly payments, in the form of checks, were much smaller and were made payable to Travis Lake or his wife, and deposited into personal accounts Travis Lake controlled.

The factual resume states that Lake timely filed his federal income tax returns for 2006, 2007 and 2008, but willfully omitted income of approximately $77,070 for 2006; $82,540 for 2007; and $54,000 for 2008, all of which he received from Grapevine Drug Mart.

In related cases, two pharmacists at Grapevine Drug Mart, have also pleaded guilty to tax evasion, according to factual resumes filed in those cases. Norvell Moss admitted that he failed to report approximately $194,150 in income he received from Grapevine Drug Mart for tax year 2008, and as a result of not reporting all of his income, Norvell Moss had an additional tax due and owing of $58,233 for that year. Joseph Moss admitted that he failed to report approximately $159,450 in income he received from Grapevine Drug Mart for tax year 2008, and as a result of not reporting all of his income, Joseph Moss had an additional tax due and owing of $58,554 for that year. Norvell Moss is to be sentenced on May 10, 2013, and Joseph Moss is scheduled to be sentenced on June 24, 2013. They are both residents of Fort Worth, according to orders filed setting conditions for their release.

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.

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

DALLAS — Following nearly a week of trial and deliberation, a federal jury has found Jackie Don Burke, 68, of Rowlett, Texas, guilty of engaging in the business of firearms without a license, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Burke faces a maximum statutory penalty of five years in prison and a $250,000 fine. He will remain on bond pending sentencing, which is set for May 24, 2013, before U.S. District Judge Barbara M. G. Lynn.

The government presented evidence at trial that Burke repeatedly bought used firearms for resale, a business that he conducted out of his print screening shop in Garland, Texas. According to Burke’s own records, he sold at least 135 firearms in a 14-month period.

In one instance, Burke sold a pistol to an undercover ATF agent without even asking if he was a prohibited person, i.e., a convicted felon. Burke only asked the agent if he had a Texas driver’s license, which Burke only glanced at. Burke had a sign outside his print screening business that declared that he was in the business of selling guns, but he maintained that he was simply selling firearms from his personal collection, which is lawful. During his testimony, Burke told the jury, multiple times, that he was simply “too old to go to jail.”

The indictment includes a forfeiture allegation that requires Burke, upon conviction, to forfeit 45 firearms.

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorneys Taly Haffar and Katherine Pfeifle are prosecuting.

Former Owner of “In Tha Game Records” Made and Sold DVDs Containing Copyrighted Movies

DALLAS — Victor Karl Shelby, 46, of Dallas, was sentenced by U.S. District Judge Barbara M. G. Lynn on Wednesday to 42 months in federal prison, following his guilty plea in July 2012 to one count of willful infringement of a copyright. Judge Lynn ordered Shelby to surrender to the Bureau of Prisons by March 12, 2013, to begin serving his sentence. 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, Shelby owned and operated “In Tha Game Records,” which was located on East Illinois Avenue in Dallas, from sometime before September 2008 to November 2009. During that time, Shelby reproduced and sold DVDs containing copyrighted movie pictures. Shelby, or someone at his direction and with his authorization, used digital reproduction equipment located in the business to make copies of the copyrighted movies. Shelby sold each copyrighted movie for approximately $3.00.

As part of his plea, Shelby agreed to forfeit to the U.S. all the merchandise and property purchased and/or seized by law enforcement agents from his shop. That equipment included: two 11-slot DVD burner towers; 21 DVD burner drives; and approximately 2400 copyrighted DVDs.

The case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Paul Yanowitch.

FORT WORTH, Texas — A federal jury in Fort Worth, Texas, has convicted Larry Lake on one count of concealment of assets (bankruptcy fraud) and three counts of tax evasion, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. The trial began Monday morning before U.S. District Judge John McBryde.

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

Lake faces a maximum statutory sentence of five years in federal prison and a $250,000 fine for each of the four counts in which the jury found him guilty. A sentencing date was not set.

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

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

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

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

The case was 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 prosecution.

Law Enforcement Seized Cocaine and More Than $78,000 in Drug Trafficking Proceeds During Execution of Search Warrant

LUBBOCK, Texas — Gabriel Aguilar, 35, of Big Spring, Texas, was sentenced today by U.S. District Judge Sam R. Cummings to 87 months in federal prison, following his guilty plea in October 2012 to an Information charging one count of possession with intent to distribute cocaine, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Judge Cummings remanded Aguilar, who had been on bond, to the custody of the U.S. Marshal.

According to documents filed in the case, officers with the Big Spring Police Department executed a search warrant at Aguilar’s residence on December 13, 2011. During the search, Aguilar advised officers that there was approximately 15-19 ounces of cocaine in the house, along with $60,000 in his closet. He stated that he had been selling cocaine for the past year to supplement his salary, but that he was down to his last “bird” or kilogram of cocaine.

In the residence, officers located approximately 2.49 pounds of cocaine in kitchen cabinets and Aguilar’s bedroom closet. A part of that amount was contained in 82 pre-measured, plastic bags that each contained seven grams of cocaine. In addition, officers located drug paraphernalia, such as plastic bags and digital scales, a 9mm semi-automatic pistol and $78,319 in cash that was concealed in clothing in Aguilar’s closet.

The case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Big Spring Police Department. Assistant U.S. Attorney Justin T. Cunningham was in charge of the prosecution.

Defendant Conspired With Former Vice-President of Pavillion Bank in Richardson, Texas

DALLAS — Late yesterday, following a two-day trial before U.S. District Judge Reed C. O’Connor, a federal jury convicted Jason Dvorin, 45, of Southlake, Texas, on a superseding indictment charging one count of conspiracy to commit bank fraud, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Dvorin will remain on bond pending sentencing, which is set for July 11, 2013 before Judge O’Connor. Dvorin faces a maximum penalty of 30 years in federal prison, a $1 million fine and restitution.

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

Derrington, 61 of Dallas, was charged in a separate case with the same offense and pleaded guilty to that charge in May 2012. His sentencing date is presently set for February 28, 2013.

Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit http://www.stopfraud.gov/.

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

DALLAS — Andrew Dale McKee, 36, formerly of Oklahoma City, was sentenced this afternoon by U.S. District Judge Barbara M. G. Lynn to 87 months in federal prison, following his guilty plea in October 2012 to one count of transferring obscene material to a minor, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

McKee admitted that in April 2012, he sent a friend request to Jane Doe, a 14-year-old girl, via Facebook. Jane Doe’s Facebook page was public, listing her name, true birth date, middle school and her cell phone number. After Jane Doe accepted his friend request, McKee text messaged her, engaging in sexually explicit messaging and sending her an obscene photograph.

McKee indicated to Jane Doe that he wanted to engage in sexual activity with her and another friend, “Britany,” who McKee also believed was a 14-year-old girl. Via his cell phone, McKee ultimately persuaded “Britany” to meet him in Garland, Texas, to engage in illegal sexual activity with him. McKee also admits that he sent “Britany” the same obscene image he sent to Jane Doe.

On April 26, 2012, McKee used public transportation to meet “Britany” in Garland, at a prearranged time and place, intending to engage in sexual activity with her. Instead, when he arrived, he was arrested by officers with the Garland Police Department.

This matter 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 Garland Police Department and U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Lisa J. Miller was in charge of the prosecution.

AMARILLO, Texas — John Michael Garibay, 22, of Friona, Texas, was sentenced this morning by U.S. District Judge Mary Lou Robinson to 57 months in federal prison and ordered to pay $6,541 in restitution for committing the August 27, 2012, armed robbery of the Friona Federal Credit Union, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

According to documents filed in the case, at approximately 12:06 p.m. that Monday, a man wearing a gas mask, who was later identified as Garibay, entered the Credit Union, walked to a teller and demanded money. He then pulled a handgun out of his waistband and showed it to the teller. The teller gave Garibay cash, and he left the bank and headed down an alley, spilling some of the cash. He left the scene in a gray Dodge Charger.

Shortly thereafter, law enforcement located Garibay at a residence in a trailer park, where they had observed the gray vehicle. During a search of the residence, officers found items used in the robbery including matching clothing, a black Nike single strap backpack, with a five dollar bill inside the bag, and a bank money strap with “Teller 33" stamped on it. Law enforcement located a .45 caliber plastic case and .45 and .38 caliber handgun rounds in the trash can in the kitchen. Garaby identified an area two spaces down from his trailer where law enforcement located a black .45 caliber semi-automatic Taurus handgun.

As law enforcement transported Garibay to the Randall County Jail, he asked how much time he would get and said, “I made the case for you by telling you where the gun was.”

The case was investigated by the FBI, the Friona Police Department and the Palmer County Sheriff’s Office. Assistant U.S. Attorney Christy Drake of the U.S. Attorney’s Office in Amarillo, Texas, was in charge of the prosecution.

AMARILLO, Texas — Larry Boyd Wren, II, 40, appeared in federal court in Amarillo, Texas, yesterday, and pleaded guilty before U.S. District Judge Mary Lou Robinson to one count of mailing a threatening communication. Wren faces a maximum penalty of 10 years in federal prison and a $250,000 fine. 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, in June 2012, while he was incarcerated in the Brown County jail, having been accused of committing several state offenses, Wren penned a letter to U.S. District Judge Sam R. Cummings, expressing his dissatisfaction with his incarceration. He made a threatening comment in the letter and mailed the letter to Judge Cummings at the Federal Courthouse in Lubbock, Texas.

The investigation is being conducted by the FBI. Assistant U.S. Attorney Christy L. Drake, of the U.S. Attorney’s Office in Amarillo, is in charge of the prosecution.

LUBBOCK, Texas — Donnie Wright, 53, of Lubbock, Texas, appeared yesterday in federal court and pleaded guilty, before U.S. District Judge Sam R. Cummings, to one count of embezzlement of funds by a bank employee. Wright, who remains on bond, faces a maximum statutory penalty of 30 years in federal prison, a $1 million fine and restitution. Judge Cummings ordered a presentence investigation report with the sentencing date to be set after the completion of that report. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

According to documents filed in the case, 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 is in charge of the prosecution.

James Lynn Jones Operated Lot-O-Games in Jones County, Texas

LUBBOCK, Texas — James Lynn Jones, 69 , of Abilene, Texas, pleaded guilty this morning in federal court, before U.S. District Judge Sam R. Cummings, to an Information charging one count of operating an illegal gambling business, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Jones operated the illegal gambling business, Lot-O-Games, on Highway 277 in Jones, County, Texas.

The maximum statutory penalty for the offense is five years in federal prison and a $250,000 fine. However, according to the plea agreement filed in the case, the government will make a non-binding recommendation to the Court that the appropriate sentence is eight months imprisonment, to be satisfied by two months imprisonment and a term of supervised release with a condition that substitutes six months of home detention for the remaining term of imprisonment. Judge Cummings ordered a presentence investigation report with a sentencing date to be set after the completion of that report.

In addition, according to the plea agreement, Jones agrees to forfeit property that was seized by law enforcement officers last summer, pursuant to federal search and seizure warrants. That property includes $414,163 in cash; $12,337 in cashier’s checks; gold coins; two vehicles; jewelry; firearms; ammunition; numerous gaming machines; surveillance equipment and computer equipment.

According to the factual resume filed in the case, after U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) received information that Jones was operating the business, HSI agents, acting in an undercover capacity, entered the business and observed 25-30 customers playing on various gaming terminals. The agents approached a Lot-O-Games employee and told her they wanted to play on terminals 21 and 22, a slot-machine-type game and a video poker game. One agent handed the Lot-O-Games employee $50 in cash and the employee credited terminal 21 with 5000 credits. The other agent applied $65 worth of credits (6500 credits) from a prior undercover operation to terminal 22.

Soon thereafter, the agents observed James Lynn Jones, carrying a brown paper bag, enter the business and walk to a bar area across from the cashier’s counter where he pulled out two stacks of cash. Immediately after Jones arrived, several patrons exchanged certificates for small pieces of paper at the Lot-O-Games cashier’s counter. The patrons then took that piece of paper to Jones who, in turn, exchanged the small piece of paper for cash. About 20-25 minutes after the agents arrived, they observed the Lot-O-Games employee approach a patron who had won a 120,000 point jackpot. The employee told the patron that she would remove the 120,000 point credit from the machine and allow the patron to cash out the $1,200 in cash with Jones. The agents then saw the patron go to Jones to receive the cash.

One agent concluded playing the video poker game with 4900 credits, approached the Lot-O-Games employee and handed her a $1 bill. The employee, in return, gave the agent five, $10 “Playback Certificates.” The employee told the agent that he/she could get cash because the owner was present and that Sundays were the only days that the business paid out in cash. The Lot-O-Games employee took back the Playback Certificates and gave the agent a small piece of paper with the number “5” and her initials on it. The agent handed the piece of paper to Jones, who, in turn, gave the agent $50 in cash. The other agent followed a similar procedure to obtain $50 in cash from Jones.

The investigation revealed that this was standard practice at Lot-O-Games. During the week, customers would receive Playback Certificates for the points that were remaining after playing at various gambling-type video game consoles. On Sunday, Jones would come to Lot-O-Games and customers could exchange these Playback Certificates for cash. This practice began sometime around late 2010. The investigation further revealed that during a 12-hour shift, the business took in approximately $3,500 - $5,000.

The investigation is being conducted by ICE HSI, the Abilene Police Department, the Jones County District Attorney’s Office, the Office of the Texas Attorney General and the Texas Department of Public Safety. Assistant U.S. Attorney Jeffrey Haag, of the U.S. Attorney’s Office in Lubbock, Texas, is in charge of the prosecution, and Assistant U.S. Attorney Diane Kozub, is handling the forfeiture.

Drugs and Firearms Were Seized During the Execution of a Search Warrant in August 2011

ABILENE, Texas — Joshua Cisneros, 29, of Abilene, Texas, was sentenced yesterday afternoon by U.S. District Judge Jorge A. Solis, in federal court in Abilene, to a total of 18 years in federal prison. Cisneros was convicted at trial in September in 2012 on all five counts of an indictment charging conspiracy to distribute and possess with intent to distribute 50 grams or more of methamphetamine; possession with intent to distribute 50 grams or more of methamphetamine; possession with intent to distribute cocaine; possession with intent to distribute less than 50 kilograms of marijuana; and possession of a firearm in furtherance of a drug trafficking crime. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

Cisneros’ co-defendant in the case, Nicholas Albarado, 27, also of Abilene, was sentenced by Judge Solis in November 2012 to 18 years in federal prison. He pleaded guilty to one count of possession with intent to distribute 50 grams or more of methamphetamine and possession of a firearm in furtherance of a drug trafficking crime.

According to documents filed in the case and evidence presented at trial, the Abilene Police Department received information that a residence on Locust Street in Abilene was being used as a marijuana stash house for a drug trafficking organization. On August 30, 2011, agents with the Abilene Police Department went to the residence to conduct a knock-and-talk in reference to a drug trafficking investigation. When Albarado answered the door, there was an overwhelming smell of fresh marijuana. When agents entered the residence based upon exigent circumstances, Albarado escorted them to a bedroom where they met the owner of the residence, as well as Cisneros.

Shortly thereafter, law enforcement obtained and executed a search warrant at the residence. During the execution of that warrant, agents located and seized methamphetamine, cocaine and marijuana, located throughout the house, as well as one stolen rifle and two handguns.

The investigation was spearheaded by the Abilene Police Department, with assistance from U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Taylor County Sheriff’s Office.

Assistant U.S. Attorneys Justin Cunningham and Jeffrey Haag, of the U.S. Attorney’s Office in Lubbock, Texas, were in charge of the prosecution.

Dr. Daniel K. Leong Owned South Dallas Community Medical Center

DALLAS — On the day his trial was to begin in U.S. federal court, Dr. Daniel K. Leong, 59, who owned South Dallas Community Medical Center (SDCMC) on Martin Luther King Blvd., in Dallas, pleaded guilty to one count of conspiracy to commit health care fraud. Leong, who is in federal custody, faces a maximum penalty of five years in federal prison, a $250,000 fine and restitution. Sentencing is set for May 1, 2013, before U.S. District Judge Ed Kinkeade.

Leong’s co-conspirator, Cal Graves, who worked as a physician assistant at the SDCMC, pleaded guilty in July 2012 to the same offense. He is scheduled to be sentenced by Judge Kinkeade on February 13, 2013.

According to plea documents filed in the case, from February 2010 to February 2011, Leong and Graves engaged in a conspiracy to defraud Medicare and Medicaid by falsely representing that office visits and diagnostic tests were medically necessary.

PIn exchange for submitting themselves to diagnostic tests, patients at the clinic were prescribed controlled substances. This ensured that the patients would return to the clinic the next month, thus making themselves available for more tests. Often, patients would exaggerate their pain level to provide a basis for a prescription for narcotics. Leong benefitted from the exaggeration because this gave him “cover” to order more tests. The patients were rarely referred to specialists for their persistent pain and this process was repeated for up to several years without any actual treatment for some patients.

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

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

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

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

Since their inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,480 defendants who have collectively billed the Medicare program for more than $4.8 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

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

Multiple Bullets Struck and Damaged Aircraft

WICHITA FALLS, Texas — Stephen Paul Riley, 41, of Olney, Texas, appeared in federal court in Wichita Falls, Texas, this morning and pleaded guilty, before U.S. District Judge Reed C. O’Connor, to an Indictment charging one count of destruction of an aircraft. Riley, who will remain on bond, faces a maximum penalty of 20 years in federal prison and a $250,000 fine. Sentencing is set for May 21, 2013, before Judge O’Connor. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

According to 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 is being investigated by the Texas Rangers and the Texas Parks and Wildlife Department. Assistant U.S. Attorney Katherine Miller is in charge of the prosecution.

DALLAS — Three Dallas residents, Jorge Armando Flores, 45, his wife Roxana Flores, 43, and her son, Julio C. Funes-Alas, 27, were arrested by U.S. Postal Inspectors this morning in Amityville, New York, on conspiracy and mail fraud charges outlined in a 19-count indictment returned by a federal grand jury in Dallas last week, and unsealed today, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. All three defendants appeared before a U.S. Magistrate Judge, who ordered that they be detained and transported to the Northern District of Texas for further court proceedings.

According to the indictment, Jorge and Roxana Flores were employed as sales agents in the Latin Department by U.S.A. Gateway, Inc., an international wholesale travel agent, located on Spring Valley Road in Dallas. Gateway was registered with the Airline Reporting Corporation which enabled it to purchase airline tickets directly from the airlines. Gateway then sold these tickets to subagents, or retail travel agencies, that in turn would sell the tickets to their customers. Among the subagents that purchased airline tickets from Gateway were Ramon Travel & Services, Inc., located in Providence, Rhode Island; Your Travel Agent Con Sabor Latino, located in Carrollton, Texas; and Jeanette Travel, located in Lowell, Massachusetts.

The indictment alleges that beginning at least as early as March 2007, and continuing until August 2011, the three defendants conspired with each other, and others, to commit mail fraud by converting to their benefit, checks that were mailed to Gateway from subagents. As part of the conspiracy Jorge Flores circumvented accounting procedures and caused checks mailed by subagents to Gateway to be diverted and deposited into bank accounts that the defendants set up and controlled. When a check was received, Jorge Flores would forge the signatory’s notation on a photocopy to indicated the subagent’s check had been received and then deliver the falsified photocopy to the accounts receivable department for recording. The original check would be diverted into bank accounts that the defendants had set up to receive the stolen funds. The defendants would then write checks, withdraw funds, make electronic withdrawals or transfers, make ATM withdrawals, and make debit purchases on these accounts for their personal benefit and use.

In addition to the conspiracy count, Jorge Flores is charged with 18 counts of mail fraud; Roxana Flores is charged with 12 counts of mail fraud; and Julio C. Funes-Alas is charged with six counts of mail fraud. Each of these counts represents a check of between $9,000 and $33,000 from the subagent to Gateway, which was diverted by the defendants.

A federal indictment is an accusation by a grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. Upon conviction, however, each count of the indictment carries a maximum penalty of 20 years in federal prison and a $250,000 fine.

The case is being investigated by the U.S. Postal Inspection Service. Assistant U.S. Attorney Christopher Stokes is in charge of the prosecution.

DALLAS — Kenneth Santodomingo, aka “Juan Joel Pagan,” 22, has been charged in a federal criminal complaint with aiming a laser pointer at an aircraft. It is anticipated that he will make his first appearance in federal court in Dallas this afternoon at 2:00 p.m., before U.S. Magistrate Judge Paul D. Stickney. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

According to the complaint filed late yesterday in federal court in Dallas, at approximately 4:08 a.m. yesterday morning, January 28, 2013, uniformed Dallas Police Department (DPD) officers were operating a DPD helicopter, flying over the area of 8000 Umphress in Dallas, when the cockpit was illuminated, approximately four times, by a laser pointer. The intensity of the light obscured the vision of the pilot and impaired the pilot’s ability to control the aircraft.

The DPD officers in the helicopter pinpointed the location in Dallas where the laser originated and directed officers on the ground to a residence at 7719 Lake June Road, where the laser light originated from the back yard. Santodomingo answered the officers’ knock at the front door of the residence. Officers explained that an individual was observed illuminating the DPD helicopter with a laser pointer from the back yard and was then seen running into the house through the back door. After officers informed Santodomingo that the incident had been recorded, he admitted pointing the green laser light at the helicopter to see how far it would go. The officers obtained the laser pointer from Santodomingo.

The complaint further notes that the video taken by the DPD helicopter showed that the individual using the laser in the backyard fit the description of Santodomingo and appeared to wear the same short style underwear at the time of the offense that Sandodomingo was wearing when talking with officers.

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 penalty for the offense charged, however, is five years in prison and a $250,000 fine.

The case is being investigated by the DPD and the FBI. Assistant U.S. Attorney Katherine Miller is in charge of the prosecution.

DALLAS — A federal grand jury in Dallas has returned an indictment charging Tonderai Sakupwanya and Reminico Zhangazha each with one count of conspiring to commit mail fraud and wire fraud stemming from a federal income tax refund identity theft scheme they ran from May 2009 through May 2012. Sakupwanya is scheduled to make his initial appearance in federal court this afternoon before U.S. Magistrate Judge David L. Horan. U.S. Attorney Sarah R. Saldaña of the Northern District of Texas made today’s announcement.

Sakupwanya, aka “Pound, Webster Rice, Floyd Roberts and Floyd Robbins,” is presently in federal custody, having pleaded guilty in October 2012 to an Information, filed in the Northern District of Texas, charging false use of a passport. He faces up to 10 years in prison and a $250,000 fine for that conviction; sentencing is set for March 18, 2013.

Zhangazha, aka “Boss Remy,” “Martin V. Masters and Roy Daniel Black,” is presently in federal custody in the Eastern District of Texas, where he has pleaded guilty to one count of making a false statement in the use of a passport. According to the factual resume filed in that case, Zhangazha is a citizen of Zimbabwe, with permission to temporarily reside in the U.S.

The indictment, returned last week in Dallas, alleges that Sakupwanya and Zhangazha conspired together, and with others, to commit mail fraud and wire fraud to obtain approximately $2.6 million in federal income tax refunds by electronically filing multiple fraudulent income tax returns containing stolen personal identification information.

As part of the stolen identity refund fraud conspiracy, according to the indictment, the defendants obtained personal identifying information from other persons without their knowledge or authorization. They also obtained electronic filing identification numbers “EFIN” that were assigned by the Internal Revenue Service (IRS) to professional tax preparers. To further the conspiracy, according to the indictment, using fraudulent identification, the defendants rented private mail boxes to establish mailing addresses and established bank accounts at various financial institutions to receive the fraudulently obtained tax refunds.

The indictment alleges the defendants prepared fraudulent income tax returns by using the stolen identities and used false income and withholding information to produce a purported tax refund. They then electronically filed the fraudulent returns which resulted in approximately $2.6 million in fraudulently obtained funds to be deposited into bank accounts they controlled. According to the indictment, they withdrew the cash and used it for their personal use and enjoyment.

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, each of the defendants faces a maximum statutory penalty of 20 years in federal prison and a $250,000 fine. In addition, the indictment includes a forfeiture allegation which would require the defendants, upon conviction, to forfeit to the U.S. any proceeds traceable to the offense, including approximately $105,000 seized in May 2012 from Zhangazha’s vehicle, his apartment and a residence on Spring Mountain Drive in Plano, Texas.

In September 2012, the Department of Justice announced a new directive to further the efforts of the Department’s Tax Division and U.S. Attorneys’ Offices to respond quickly and effectively to fight stolen identity refund fraud.

The case is being investigated by IRS Criminal Investigation. Assistant U.S. Attorney Christopher Stokes is in charge of the prosecution.

LUBBOCK, Texas — James Galen Brown, 40, of Lubbock, Texas, was sentenced this morning by U.S. District Judge Sam R. Cummings to nine years in federal prison and a 10-year term of supervised release, following his guilty plea in October 2012 to one count of transportation of child pornography. Brown admitted that he used his cell phone, and its texting functions, to intentionally send and receive images and videos of child pornography. Judge Cummings ordered that Brown surrender to the Bureau of Prisons on March 1, 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, on June 1, 2012, Special Agents with U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) interviewed Brown after receiving information that a telephone number assigned to Brown had received text messages with attachments of child pornography. Brown admitted that he used the cell phone to communicate with other individuals who shared an interest in sexually explicit images and videos of minors, and he used his cell phone to trade the material with those persons. He located these persons on Internet chat rooms and exchanged phone numbers with them, and then traded the child pornography images and videos by attaching them to text messages.

This matter 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 www.justice.gov/psc/ For more information about internet safety education, please visit www.justice.gov/psc/ and click on the tab "resources."

Assistant U.S. Attorney Steven M. Sucsy was in charge of the prosecution.

LUBBOCK, Texas — Richard Mendoza, 22, of Lubbock, Texas, was sentenced this morning by U.S. District Judge Sam R. Cummings to 135 months in federal prison and a 15-year term of supervised release, following his guilty plea in October 2012 to one count of receipt of child pornography. He has been in custody since his arrest in August 2012. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

According to documents filed in the case, in January 2012, while searching on the Internet for videos depicting minors engaging in sexually explicit conduct, Mendoza intentionally and knowingly downloaded a digital video file depicting a female child, under the age of 18, engaged in sexually explicit conduct.

This matter 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 www.justice.gov/psc/ For more information about internet safety education, please visit www.justice.gov/psc/ and click on the tab "resources."

The case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Steven M. Sucsy.

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

DALLAS — Daniel Oberlender, 45, a former choir teacher at Cross Timbers Middle School in Grapevine, Texas, pleaded guilty in federal court yesterday to a criminal Information charging one count of distribution of child pornography. He faces a maximum statutory penalty of not less than five years, or more than 20 years, in federal prison, a lifetime of supervised release and a $250,000 fine. Sentencing is set for June 20, 2013, before 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.

Oberlender has been in federal custody since December 20, 2012, when he was arrested on a federal criminal complaint that was filed after law enforcement executed a search warrant at his residence in Grapevine on December 18, 2012. According to documents filed in the case, Oberlender used his Apple Macbook computer to connect to the Internet and use Skype software to share a video file depicting a minor engaged in sexually explicit conduct.

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

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

Defendant, Who Owned a Convenience Store in Arlington, Texas, Also Ordered to Pay More Than $1.4 Million in Restitution

FORT WORTH, Texas — Ali Ugas Mohamud of Arlington, Texas, was sentenced this morning by U.S. District Judge John McBryde to 13 concurrent sentences of 57 months each, following his guilty plea in October 2012 to an indictment charging him with seven counts of food stamp fraud, five counts of wire fraud and one count of conducting an unlicensed money transmitting business. In addition, Judge McBryde ordered that Mohamud pay $1,418,027 in restitution, $98,000 of which is payable immediately. 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, Mohamud owned Tawakal Grocery Store, located on South Collins Street in Arlington, and was authorized to participate in the United States Supplemental Nutrition Assistance Program (SNAP), formerly known as the “Food Stamp Program.” SNAP recipients are issued an electronic benefit card (EBT), commonly referred to in Texas as a “Lone Star Card,” in order to access SNAP benefits.

From time to time, beginning in 2009, Mohamud knowingly exchanged food stamp benefits for cash or wired money to other individuals in Somalia using food stamp benefits. As part of his scheme to defraud and to obtain money, from September 2008 through February 2010, Mohamud also wired thousands of dollars from Affiliated Computer Services, Inc., which operates EBT management for retailers, to his bank in Arlington.

The case was investigated by the U.S. Department of Agriculture - Office of Inspector General, Internal Revenue Service Criminal Investigation, the Texas Health and Human Services Commission - Office of Inspector General and the U.S. Department of Housing and Urban Development - Office of Inspector General.

Assistant U.S. Attorney J. Michael Worley was in charge of the prosecution.

FORT WORTH, Texas — Following an afternoon of testimony before U.S. District Judge John McBryde, and five hours of deliberation, a federal jury convicted Josue Martinez-Garcia, aka “Cholo,” of conspiring to possess with the intent to distribute more than 500 grams of methamphetamine. Martinez-Garcia, 29, of Fort Worth, Texas, faces a statutory sentence of not less than 10 years and up to life in federal prison and a $10 million fine. Sentencing is set for May 10, 2013. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

The government presented evidence at trial that beginning at least in 2010, Martinez-Garcia conspired to distribute more than 500 grams of methamphetamine The government’s case consisted of numerous witnesses, including two cooperators who had distributed for Martinez-Garcia and an undercover agent who had negotiated with Martinez-Garcia to purchase two kilograms of methamphetamine.

Co-defendant in the case, Jacob Fenton, aka “Solo,” 29, also of Fort Worth, who testified at trial, pleaded guilty in October 2012 to one count of conspiracy to distribute and possess with the intent to distribute methamphetamine, and faces a statutory sentence of up to 20 years in federal prison and a $1 million fine. Sentencing is set for February 1, 2013.

The case was investigated by the Drug Enforcement Administration and prosecuted by Assistant U.S. Attorneys Matt Gulde and Aisha Saleem.

Ryan Walker Grant Operated Sexually-Oriented Business in Arlington, Texas

FORT WORTH, Texas — Ryan Walker Grant, 34, Kennedale, Texas, was sentenced yesterday by U.S. District Judge Terry Means to 120 months in federal prison following his guilty plea in September 2012 to one count of murder-for-hire, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Grant has been in custody since his arrest on April 9, 2012, on a related charge outlined in a criminal complaint filed the previous day.

Grant is a co-owner of Flashdancer, a sexually-oriented business in Arlington, Texas, that had been the subject of a nuisance lawsuit filed by the Texas Attorney General’s Office and the City of Arlington, which resulted in the club’s closing. According to the criminal complaint filed in the case and testimony at Grant’s preliminary and detention hearing, Grant tried to hire individuals from Mexico, through an intermediary, to kill Arlington Mayor Robert Cluck and Tom Brandt, a Dallas attorney who represents the City of Arlington in cases involving sexually-oriented businesses. Grant was angry at the men because he felt that they were costing him money by trying to prevent him from re-opening Flashdancer.

On April 3, 2012, according to the factual resume filed in the case, Grant sent a text message from his cell phone to a confidential informant (CI) requesting a return call. When the CI called Grant, Grant requested a personal meeting with him and discussed, using coded language, Grant’s desire that a murder be committed. The CI traveled to Grant’s home in Kennedale where Grant provided the CI with pictures of two individuals, Robert Cluck and Tom Brandt, whom he wanted killed. Grant asked if the CI was able to direct individuals from Mexico to travel to the U.S. and murder them. Grant offered to pay $10,000 per victim.

Shortly thereafter, when law enforcement executed a search warrant at Grant’s residence, they seized 22 firearms and nearly $150,000 in cash.

The investigation was conducted by the FBI and the Drug Enforcement Administration. Assistant U.S. Attorney Chris Wolfe prosecuted.

DALLAS — Richard Warner, 45, was sentenced this afternoon by U.S. District Judge Jorge A. Solis to 210 months in federal prison and a 10-year term of supervised release, following his guilty plea to one count of transporting and shipping child pornography, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Warner has been in federal custody since he entered that guilty plea on August 31, 2011.

According to documents filed in the case, Warner admits that in 2008 he was involved in trading images of child pornography over the internet. He further admits that on January 11, 2011, when FBI Special Agents knocked on the door of his Grand Prairie, Texas, residence, he agreed to speak to them about his activities involving child pornography on his computer. He acknowledged that he first became interested in child pornography in 2004-2005, he preferred thin, preteen boys engaged in sexually explicit conduct, and some of his child pornography images and videos also contained bondage and bestiality.

Warner allowed his computer and hard drive to be searched and indicated that in addition to numerous images and videos of child pornography, the FBI would also find stories he had written describing sadistic sexual escapades between an adult male and a minor boy. A forensic analysis conducted by the North Texas Regional Computer Forensic Laboratory on Warner’s computer and external hard drive revealed several thousand images and videos of child pornography in addition to sexual and sadistic stories about an adult male and a 10-year-old boy.

This matter 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 www.justice.gov/psc For more information about internet safety education, please visit www.justice.gov/psc and click on the tab "resources."

The case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Camille Sparks.

FORT WORTH, Texas —Booker Bernard Preston, 38, of Fort Worth, Texas, was sentenced this morning by U.S. District Judge John McBryde to a total of 10 years in federal prison, following his conviction at trial in September 2012 on one count of selling a firearm to a convicted felon and one count of possessing an unregistered sawed-off shotgun. As part of the sentencing hearing, Judge McBryde found that Preston committed perjury during his trial. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

During trial, the government presented evidence that in August 2010, special agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) received information from a confidential informant that an individual, later identified as Preston, was selling a large amount of handguns and rifles, and that he was known to take and fill orders for firearms and not require any paperwork to purchase the firearms.

In an undercover operation on November 15, 2010, Preston sold a Bryco, Model 48, .380 caliber semiautomatic pistol to a convicted felon. On November 19, 2010, a federal search warrant was executed at Preston’s residence, during which 24 firearms were seized, including a sawed-off shotgun, which Preston stated he had made the previous week.

The case was investigated by ATF and prosecuted by Assistant U.S. Attorney John P. Bradford.

Two Defendants Also Charged in Money Laundering Conspiracy

DALLAS — A federal indictment, returned by a grand jury in Dallas last month, charging 20 Dallas-Fort Worth area residents with conspiracy to possess with the intent to distribute 100 kilograms or more of marijuana, has been unsealed. More than half of the defendants are in custody, following an operation this week conducted by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Internal Revenue Service Criminal Investigation (IRS-CI); the Dallas High Intensity Drug Trafficking Areas (HIDTA); the Desoto, Dallas, Balch Springs, Arlington and Midlothian Police Departments; Dallas County Sheriff’s Office, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); and the Dallas County District Attorney’s Office. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

During the course of the Organized Crime Drug Enforcement Task Force (OCDETF) operation, law enforcement executed federal and state search warrants that resulted in the seizure of approximately 25 pounds of hydroponic marijuana, more than 600 marijuana plants, 10 vehicles and five firearms.

The indictment charges the below-named defendants in the drug conspiracy:

• Sylvespa Eugene Adams, aka “Sylvesta Adams,” “Pa,” and “Paw,” 31
• Alma Diane Smith, aka “Diane Williams,” 30
• Michael Wayne-Cortez Ayers, aka “Big Mike,” 33
• Isaac Demon Mathis, aka “Ike” “Issac Damone Mathis,” 30
• David Laploise Jones, aka “Nino,” 31
• Kory Lamonte Crayton, aka “Mokmu Tave” and “Coon,” 39
• Taurus Kion Silmom, aka “T.K.,” 30
• Nathan Dewayne Brown, 21
• Connell Heads, 50
• Marvin Jamel Fantroy, aka “Seven,” 32
• Lamondrius Denard Kidd, 28
• Modrick Jamal Spencer, 28
• Waymon Madison, 39
• Edward Lee Witherspoon, 50
• Robin James Criss, aka “June Bug,” 30
• Andre Demacus Reid, aka “Black,” 27
• Rachael O’Neal, 20
• Natasha Brown, 34
• Jovanna Renee Bonner, 19
• Precious Starr Lecreas Gowans, 30

Defendants Sylvespa Eugene Adams and Alma Diane Smith are also charged with one count of conspiracy to commit money laundering. The indictment alleges that since January 2010, Adams and Smith conspired together, and with others, to conduct financial transactions involving the proceeds of their crime that were designed to conceal and disguise the nature, location, source or ownership of the proceeds. The indictment alleges that they stored and concealed drug proceeds, caused cash to be transported as payment for drugs, disposed of proceeds derived from the distribution and sale of narcotics by purchasing assets to conceal and disguise the nature and source of the proceeds, structured deposits of U.S. currency and used a business front to create the appearance of a legitimate of source of funds to hide the true nature and source of the funds.

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 conspiracy to possess with the intent to distribute marijuana count carries a statutory sentence of at least five years and up to 40 years in federal prison and a $5,000,000 fine. The conspiracy to commit money laundering count, upon conviction, carries a maximum penalty of 20 years in federal prison and a $500,000 fine.

In addition, the indictment includes a forfeiture allegation, which would require convicted defendants to forfeit the proceeds of their criminal activity. It would also require some of the defendants, upon conviction, to forfeit numerous vehicles, including a Mercedes, Porsche and Bentley, as well as numerous pieces of real estate.

Assistant U.S. Attorney Phelesa Guy is in charge of the prosecution.

LUBBOCK, Texas — Derrick M. Mendez, 22, who pleaded guilty in October 2012 to one count of receiving child pornography, was sentenced today by U.S. District Judge Sam R. Cummings to 121 months in federal prison, to be followed by a 10-year term of supervised release. Mendez, a former member of the U.S. Navy, was arrested earlier this summer in Hawaii, where he was stationed. In October 2011, at the time of the offense, he was stationed at Goodfellow Air Force Base in San Angelo, Texas. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

According to documents filed in the case, while living in San Angelo, Mendez installed peer-to-peer file-sharing software on his home computer, and then used the program to download and view numerous images and videos of child pornography. In the course of his searches, Mendez used search terms intended to locate material depicting minors engaging in sexually explicit conduct.

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

The investigation was conducted by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Air Force Office of Special Investigations.

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

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

DALLAS --- Patrick Robert Simon, 34, of Dallas, pleaded guilty on Wednesday before U.S. District Judge Jorge Solis to a criminal Information charging one count of money laundering, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Simon, a criminal defense lawyer, faces a maximum penalty of 20 years in federal prison and a $500,000 fine. His sentencing hearing has been set for May 1, 2013.

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

After numerous meetings and continued negotiations, on March 16, 2012, the CI met with Simon at Simon’s law office to transfer the cash. Simon explained the scheme. Simon stated that the CI was going to hire Simon’s firm to handle the appeal of his drug trafficking conviction. Simon stated that he would use his attorney trust fund to write a check every month to the CI’s designee. Simon explained that because it was a legal transaction, he would not have to report it. The three of them agreed that the checks would be written for $7,500, unless a different amount was specified later. The CI gave $110,000 cash to Simon. Simon had a money counter on hand for the purpose of counting the cash. Simon accepted the cash and attempted to use the money counter, but the machine malfunctioned and Simon counted the cash by hand.

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

The case is being investigated by Internal Revenue Service Criminal Investigation. Deputy Criminal Chief Assistant U.S. Attorney Jay Dewald is in charge of the prosecution.

Joel Valencia Salazar Owns Primo Produce in Dallas

DALLAS — Two men, who were arrested Friday on federal drug charges, made their initial appearance in federal court in Dallas before U.S. Magistrate Judge Renée Harris Toliver, who released each of them on a personal recognizance bond. Gabriel Delgado, Jr., 35, of Dallas and Joel Valencia Salazar, 38, of McKinney, Texas, are charged in a federal criminal complaint with possession with intent to distribute 100 kilograms or more of marijuana. Salazar, according to the criminal complaint, is the owner of Primo Produce, located on Ladybird Lane in Dallas. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

According to the complaint, on January 11, 2013, after inspecting suspicious freight pursuant to a state search warrant at the Averitt Express freight company warehouse in Grand Prairie, Texas, law enforcement located approximately 122 kilograms of marijuana in a shipment that had just arrived at the facility from Brownsville, Texas. The marijuana was hidden in large plastic storage bins that were placed inside cardboard boxes. The shipment’s bill of lading stated that the freight contained 10 containers of scales and metal plates.

According to the affidavit filed with the complaint, Averitt Express had contacted an individual about picking up the freight at the dock, and the individual was informed that there was an outstanding balance of more than $600 that would have to be paid before the freight could be released. Shortly thereafter, an individual, driving a box truck, arrived at Averitt Express and parked. Afterwards, a Chevrolet Tahoe pull up behind the box truck and that driver exited the vehicle, approached the driver of the box truck and handed the driver some papers. The box truck then entered Averitt Express, where the driver paid for the freight. While he was awaiting loading instructions, he was approached and detained by officers. Law enforcement officers who were located outside the business approached and detained the two men inside the Tahoe, which had remained parked across the street from Averitt Express. The Tahoe’s driver was identified as Delgado and the passenger was identified as Salazar.

Delgado said he was being paid $500 to coordinate picking up the freight and delivering it to a warehouse on Ladybird Lane in Dallas. Salazar said that he agreed to allow Delgado to use his warehouse in exchange for $500.

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 offense charged, however, is not less than five years and up to 40 years in prison and a $5,000,000 fine.

The case is being investigated by the Drug Enforcement Administration and the Fort Worth Police Department. Assistant U.S. Attorney Taly Haffar is in charge of the prosecution.

Defendant Had More than 3000 Images and Eight Videos of Child Porn

DALLAS — Christopher Vernon George, 41, of Mesquite, Texas, was sentenced this morning by U.S. District Judge David C. Godbey to 40 months in federal prison and a 10-year term of supervised release, following his guilty plea in October 2012 to an Information charging one count of possession of child pornography. George was ordered to surrender to the Bureau of Prisons on March 4, 2013.

During an investigation involving the website, “liberalmorality.com,” which offered sexually explicit images of videos of minor children for download, investigators were able to identify an IP address associated with George. A state search warrant was executed at George’s residence, which at the time was in Garland, Texas, by agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and officers of the Garland Police Department. Investigators seized George’s computer and external storage media.

George admitted that he had been downloading and viewing child pornography for 15 years. A forensic analysis of the items seized identified more than 3000 images and eight videos of child pornography that George had downloaded from the Internet.

This matter 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 www.justice.gov/psc For more information about internet safety education, please visit www.justice.gov/psc and click on the tab "resources."

ICE HSI and the Garland Police Department investigated. Assistant U.S. Attorney Camille Sparks was in charge of the prosecution.

DALLAS — Kevin Dwayne Williams, 43, of Garland, Texas, was sentenced Friday afternoon by Chief U.S. District Judge Sidney A. Fitzwater to 61 months in federal prison following his guilty plea in September 2012 to one count of bank fraud and one count of aggravated identity theft, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. In addition, Judge Fitzwater ordered that Williams pay approximately $2,500 in restitution.

In a superseding indictment returned in May 2012, a federal grand jury in Dallas charged Williams with three counts of possession of stolen mail, two counts of bank fraud and two counts of aggravated identity theft. At sentencing, the remaining five counts of the indictment, to which Williams did not plead guilty, were dismissed.

Williams pleaded guilty to Counts Four and Five of the Indictment which alleged that in January 2012, Williams either burglarized victim “E.P.’s” residence, or obtained items that had been stolen from E.P.’s residence, including his birth certificate and other documents containing personal information, such as Social Security number and date of birth. In fact, Count Four of the indictment alleged that Williams stole mail from several residential mailboxes in and around Dallas, including Garland, Mesquite and Rowlett, Texas, often stealing blank check books as well as credit card offers, which included blank credit card convenience checks.

According to the factual resume filed in the case, on January 5, 2012, Williams, falsely representing himself as E.P., opened a checking account at First National Bank/First Convenience Bank by using a temporary driver’s license and a Social Security card in the name of E.P. To fund the account, he gave bank officials an $800 Discover Card check made payable to E.P. The following day, again representing himself as E.P., Williams presented the teller a $225 check, drawn on another bank and made payable to E.P. Williams presented the teller a temporary driver’s license and Social Security card in the name of E.P. Relying on Williams’ false representations that he was E.P., and the fraudulent documents he presented, the teller cashed the check per Williams’ instructions.

The case was investigated by the U.S. Postal Inspection Service and the Garland Police Department. Assistant U.S. Attorney Aaron Wiley was in charge of the prosecution.

FORT WORTH, Texas — Jeffrey J. Sykes, 54, of San Bernardino County, California, pleaded guilty this morning before U.S. District Judge John McBryde to two counts of securities fraud stemming from a Ponzi scheme he ran in connection with his ownership of Gemstar Capital Group, Inc. (Gemstar), a California-based private equity company. For each count of securities fraud, Sykes faces a maximum statutory penalty of five years in prison, a $250,000 fine and restitution. Sentencing is set for April 26, 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.,” an individual who lived in 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. would solicit 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 approximately $24,617,441. 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 or 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 approximately $22,488,539 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 the funds received from investors were held in these accounts, investors were able to recover some of their investments.

All told, 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 $12,981,597. 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.

Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit http://www.stopfraud.gov/.

(The case is being investigated by the U.S. Postal Inspection Service and the FBI. Assistant U.S. Attorney Jay S. Weimer is in charge of the prosecution.

LUBBOCK, Texas — Harley Graves, 29, of Lubbock, Texas, was sentenced this morning by U.S. District Judge Sam R. Cummings to 41 months in federal prison, following his guilty plea in August 2012 to one count of conspiracy to manufacture, possess and pass counterfeit U.S. currency. In addition, Graves was ordered to pay $4,600 restitution, jointly and severally with his two convicted co-defendants. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

The two other defendants who were charged in the case have been convicted and were sentenced last month. Thomas Vasquez, 36, of Lubbock, pleaded guilty to a misprision of a felony and was sentenced to six months in federal prison and Augustine Moreno, 50, pleaded guilty to one count of conspiracy to possess and pass counterfeit U.S. currency and was sentenced to 27 months in federal prison. Graves and Moreno have been in custody; Vasquez was ordered to surrender to the Bureau of Prisons on January 25, 2013.

According to documents filed in the case, Graves admitted that he came to Lubbock to do a large counterfeit deal that was arranged by Vasquez. He also admitted that he manufactured counterfeit U.S. currency in his hotel room in Lubbock. He also admitted that he passed some of that currency at small restaurants in Lubbock. Moreno admitted that he obtained counterfeit currency from Vasquez and that he assisted others in passing the currency by driving them to various locations in his car. Moreno also admitted that he passed several counterfeit bills at small restaurants and a Kohls in Lubbock. Vasquez admitted allowing individuals that he knew possessed the counterfeit currency to use his car to deliver the counterfeit currency to other individuals who would pass it or to individuals who passed the currency themselves, and did not make it known to authorities. He also allowed individuals to stay at his house while making the counterfeit currency.

The case was investigated by the U.S. Secret Service. Assistant U.S. Attorney Ann Roberts was in charge of the prosecution.

DALLAS — Jesus Ventura, 37, of Irving, Texas, was sentenced this morning by U.S. District Judge Ed Kinkeade to 46 months in federal prison following his guilty plea in September 2012 to one count of bank robbery, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

According to the factual resume filed in the case, on April 10, 2012, Ventura robbed the Chase Bank, located at 1881 Sylvan Avenue in Dallas.

The affidavit filed with the criminal complaint states that when Ventura entered the bank, he asked an employee if he could use the restroom. The employee provided Ventura with the door code and informed him that the restroom was located in the office building’s lobby. Ventura left the bank lobby, but soon returned and was greeted by a teller offering her assistance. Ventura replied in a low-toned voice, “I am sorry to do this to you, I really am. Give me all the money.”

The affidavit further states that the teller, who had only been employed at the bank for two weeks, stared at the robber, and he repeated several more times for her to give him the money. She stood at the counter, and Ventura’s voice became more aggressive when he said, “Give me all the money” and raised his black backpack as he continued demanding money. The teller feared that he had a weapon in the backpack. She gave Ventura the money and he took a $20 bill from the money and slid it underneath the glass to the teller and stated, “Here is a tip for you.”

Officers with the Dallas Police Department (DPD) arrested Ventura a short time after the robbery. Officers recovered no weapon, but recovered the black backpack and the money stolen from Chase Bank.

The FBI and the DPD investigated; Assistant U.S. Attorney Keith Robinson was in charge of the prosecution.

DALLAS — A federal grand jury in Dallas returned an indictment late yesterday charging Azeez Ahmed Al-Ghaziani with one count of possession of a firearm by an unlawful user of a controlled substance and one count of fraudulent production of an identification document. Al-Ghaziani, 30, of Fort Worth, Texas, has been in custody since his arrest in October 2012 by officers with the Hurst Police Department. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

The indictment alleges that on October 2, 2012, Al-Ghaziani, an unlawful user of, and addicted to, a controlled substance, knowingly possessed a .40 caliber Smith & Wesson pistol and a Hawk Industries 12-gauge shotgun. It further alleges that on the same date, Al-Ghaziani produced fraudulent U.S. military and U.S. government identification badges that appear to have been issued by, or under the authority of, the United States.

According to the criminal complaint filed in the case, officers with the Hurst Police Department were contacted on October 2, 2012, about a suspicious truck that was parked behind a strip center on Grapevine Highway in Hurst. When officers arrived and looked through the truck’s windows, they noticed two gun carrying cases. Officers determined that Al-Ghaziani was the vehicle’s owner, but after all efforts failed to locate him, and because law enforcement believed the vehicle may have been used for military law enforcement purposes, officers decided to enter the unlocked truck to locate contact information for the owner and safeguard any firearms that might be in the truck.

Inside, officers located a duffle bag that contained fraudulent identification badges, an unloaded .40 caliber Smith & Wesson pistol, chrome tape that appeared to have been used to mimic the appearance of a microchip on the identification badges, three Department of Defense (DoD) vehicle registration decals and zip-lock type bags commonly used in the distribution of illegal narcotics. An unloaded 12-gauge shotgun, ammunition for the shotgun and a magazine containing approximately 12, .40 caliber rounds were also found in the truck.

Al-Ghaziani was questioned after officers noticed him exiting a dry-cleaning business that he said he owned in the strip center. Officers obtained a state search warrant for the business and seized additional fraudulent U.S. military and U.S. government identification badges and other items including plastic badge holders containing fraudulent Central Intelligence Agency (CIA) credentials; DoD military credentials, methamphetamine, drug paraphernalia, a laptop computer and thumb drive.

An indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty. However, if convicted, the firearm count carries a maximum penalty of 10 years in prison and a $250,000 fine and the production of identification documents count carries a maximum penalty of 15 years in prison and a $250,000 fine.

The investigation is being conducted by the Hurst Police Department, the Naval Criminal Investigative Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Errin Martin is in charge of the prosecution.

Theresa Portillo Was Chief Executive Officer at the Now Defunct WSFCU

DALLAS – Theresa Portillo, 44, of Dallas, pleaded guilty late yesterday before U.S. Magistrate Judge Renée Harris Toliver to a felony Information charging one count of embezzlement of funds from a credit union, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Portillo faces a maximum statutory sentence of 30 years in federal prison, a $1 million fine and restitution. In addition, according to the terms of the plea agreement, Portillo voluntarily agrees to forfeit several parcels of real estate in the Dallas-Fort Worth area, as well as personal property and a timeshare in Cabo San Lucas, Mexico. Portillo will remain on bond pending sentencing, which is set for May 10, 2013, before U.S. District Judge Barbara M. G. Lynn.

According to documents filed in the case, from 2001 to October 2012, while employed at the credit union, 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 enable 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 vacations, pay family medical expenses and remodel houses.

The case was investigated by the FBI. Assistant U.S. Attorney David Jarvis is in charge of the prosecution.

DALLAS — Jason Cano appeared today in federal court in Dallas, before U.S. Magistrate Judge Renée Harris Toliver, and pleaded guilty to one count of filing false, fictitious and fraudulent claims against the U.S. and one count of aggravated identity theft, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

Cano faces a maximum penalty of five years in federal prison on the fraudulent claims count. The aggravated identity theft count carries a mandatory penalty of two years in federal prison, which must be served consecutively to any sentence he receives on the false claims count. In addition, each count carries a possible fine of up to $250,000 and restitution could be ordered. Sentencing is set for May 10, 2013.

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 is in charge of the investigation; Assistant U.S. Attorney Chris Stokes is in charge of the prosecution.

Defendant Faces Up to Life in Prison

ABILENE, Texas — Frank Esparza, Sr., 40, of El Paso, Texas, appeared today before U.S. Magistrate Judge E. Scott Frost and admitted committing the September 27, 2012, armed robbery of First Bank Texas (FBT), SSB, in Abilene, Texas, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

Specifically, Esparza pleaded guilty to one count of armed bank robbery and one count of using and carrying a firearm during and in relation to a crime of violence. The armed bank robbery count carries a maximum statutory penalty of 25 years in federal prison and a $250,000 fine, and the firearm count requires imprisonment for a period of not less than seven years and up to life, and a $250,000 fine. Esparza remains in federal custody; a sentencing date was not set.

According to plea papers filed in the case, at approximately 4:30 p.m. on September 27, 2012, a Hispanic male wearing a dark hooded jacket, sunglasses and a ski mask, who was later identified as Esparza, entered FBT and approached the teller counter. Esparza pointed a .25 caliber pistol at the tellers and said: “you know what this is.” Esparza then walked behind the teller counter, held up a plastic grocery bag, and demanded money from the tellers. The tellers gave Esparza the money and he said: “thank you ladies, I did not want anyone to get hurt.” As he began to exit the bank, an FDIC auditor was also leaving the bank and Esparza pointed the pistol at the auditor and told him not to say anything. Esparza then fled the scene.

The plea papers also state that Esparza was driving an 18-wheeled tractor-trailer to Lubbock when it broke down in Abilene and that his son and a friend picked him up. Esparza said he decided to rob a bank because he needed a quick way to obtain money. His son and the friend took him to a bank, but it was closed when Esparza tried to go inside and rob it. They then took him to FBT, where, after his son went inside the bank to get an idea of what was inside, Esparza entered the bank and robbed it, using a .25 caliber pistol he had acquired earlier in the day.

The investigation is being conducted by the FBI and the Abilene Police Department. Assistant U.S. Attorney Jeffrey R. Haag, of the U.S. Attorney’s Office in Lubbock, Texas, is in charge of the prosecution.

DALLAS – Eldon A. Gresham, Jr., 67, pleaded guilty late Thursday afternoon, before U.S. District Judge Jorge A. Solis, to one count of mail fraud stemming from a foreign currency exchange (ForEx) scam that he ran from January 2004 through June 2009, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Gresham, formerly of Olney, Texas, who is representing himself in the case, was set to go on trial next Monday, January 14, 2013, on a superseding indictment charging four counts of mail fraud.

Gresham faces a maximum statutory sentence of 20 years in prison, a $250,000 fine and restitution. However, in accordance with the terms of the plea agreement, if the Court accepts the plea, the parties agree that the maximum prison term shall be at the bottom end of the U.S. Sentencing Guideline range that is ultimately determined by the Court. In addition, Gresham shall forfeit a money judgment to the U.S. in the amount of $15.8 million, constituting the proceeds obtained from his offense. A sentencing date has not been set.

Gresham is presently in federal custody, having been arrested in Georgia on December 13, 2012, for violating the conditions of pre-trial release. It is expected that a bond hearing will be held in the near future.

According to the superseding indictment, Gresham recruited at least 90 individuals to invest in his ForEx trading business, The Gresham Company, which he operated out of Peachtree City, Georgia, where he resided. Gresham falsely represented to potential investors that he consistently generated large investment returns by trading investor funds in off-exchange foreign currency contracts in the ForEx market. Over the life of the scheme, Gresham fraudulently obtained approximately $15.8 million in investor funds.

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

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

The U.S. Postal Inspection Service is in charge of the investigation. Assistant U.S. Attorneys David Jarvis and J. Nicholas Bunch are prosecuting.

Plano Father and Son Currently Serving Federal Prison Sentences for Roles in the Fraud

DALLAS — Adley Husni Abdulwahab, 37, was sentenced today by U.S. District Judge Barbara M. G. Lynn to the statutory maximum sentence of 10 years in federal prison for his role in an investment fraud scheme that he and two other defendants ran from 2006 - 2007 in Dallas, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Abdulwahab was also ordered to pay nearly $13 million in restitution, jointly and severally with two other defendants who were charged in a related separate case, to the more than 175 victims they had defrauded, and he was ordered to forfeit any proceeds from the crime.

In pronouncing the sentence, Judge Lynn noted that this was a “horrible crime” and “a lot of elderly people lost their life savings.” Judge Lynn ordered that this sentence be served consecutively to the 60-year federal prison sentence that Abdulwahab is currently serving for his role in another securities fraud scheme out of the Eastern District of Virginia.

In the Northern District of Texas case, Abdulwahab, aka Adley H. Wahab, pleaded guilty in March 2012 to one count of engaging in a monetary transaction in property derived from unlawful activity (securities fraud). In related cases, Michael Wallens, Sr., formerly of Nantucket, Massachusetts, and his son, Michael Wallens, Jr., formerly of Plano, Texas, each pleaded guilty in 2010 to one count of securities fraud. Wallens, Sr. was sentenced to 54 months in prison and Wallens, Jr. was sentenced to 60 months in prison.

According to documents filed in the case, Abdulwahab and the Wallens’ offered and sold to investors Collateral Secured Debt Obligations (CDSOs), issued by W Financial Group. CDSOs are promissory notes and a type of security also known as an investment contract. Investors contributed money to a common enterprise, and in exchange, they expected to earn investment returns from the entrepreneurial efforts of persons associated with W Financial. Abdulwahab and the others defrauded investors by deceiving them about the safety of the CSDOs and the ways in which money invested in CSDOs was used.

Acting personally, and through sales agents, Abdulwahab, Wallens, Sr. and Wallens, Jr. offered and sold CSDOs with a total face value of more than $17 million to approximately 180 investors. Investors received several million dollars in payments from W Financial Group in return for their investments, but ended up losing more than $12 million.

Through the printed offering materials and other communications, Abdulwahab, Wallens, Sr. and Wallens, Jr. misrepresented a number of material facts to investors. For instance, they claimed that the insurers Lloyd’s of London and Republic Group “reinsured” the CSDOs, when in fact, as they well knew, the CDSOs were not insured. They also claimed that W Financial Group would enter into a “relationship of trust” with each investor, in which W Financial Group would comply with all the obligations of a fiduciary. In reality, however, as they well knew, they intended to betray and had betrayed the investors’ trust by using investor money for their own personal benefit, such as purchasing Wallen Sr.’s used car dealership from him; purchasing residential lots; and investing in a home building company and a power company.

Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit http://www.stopfraud.gov/

The cases were investigated by the FBI and the FDIC Office of Inspector General, with substantial assistance from the Enforcement Division staff of the Securities and Exchange Commission. Assistant U.S. Attorney Alan M. Buie was in charge of the prosecutions.

Co-Conspirator Also Murdered a Brinks Security Guard

DALLAS — Jesus Sandoval, 50, appeared in federal court this morning and pleaded guilty, before U.S. District Judge Barbara M. G. Lynn, to his role in three violent, takeover-style, armed bank robberies that he and co-conspirator Enrique Lopez, 28, committed in 2009, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

Specifically, Sandoval pleaded guilty to one count of conspiracy to commit bank robbery and two counts of using, carrying, and brandishing a firearm during and in relation to, and possessing a firearm in furtherance of a crime of violence. The conspiracy count carries a maximum penalty of five years in federal prison and each of the firearm counts carry a maximum penalty of life in prison. Each count also carries a maximum potential fine of $250,000. Sentencing is set for May 10, 2013, at 1:30 p.m., before Judge Lynn.

Sandoval and Lopez, were arrested, by officers with the Balch Springs Police Department, as they fled the scene after committing the armed robbery of the Chase Bank on Lake June Road in Balch Springs, Texas, on October 3, 2009.

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

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

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

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

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