Northern District of Texas

Richard Shih, 77, the founder and former chief executive officer of a California-based international logistics and freight forwarding company with offices in Grapevine, Texas, pleaded guilty today to conspiring to violate export laws by shipping goods to Chinese companies on the U.S. Department of Commerce’s Entity List.

According to court documents, as of September 2018, Shih’s U.S. company had an existing business relationship with Chinese freight forwarder Seajet Company Limited (Seajet). In September 2018, Seajet and its Chinese co-owner were both added to the Entity List for engaging in activities that were contrary to the national security and foreign policy interests of the United States, to include unlawfully procuring and diverting U.S.-origin items to North Korea. In addition, in June 2021, Hisiang Logistics Company Limited (Hisiang) was added to the Entity List as an alias for Seajet. Hisiang is the Chinese transliteration of Seajet. As a result of being added to the Entity List, a specific license was required to export goods from the United States to Seajet, its co-owner, and Hisiang. Nonetheless, between September 2018 and May 2022, Shih and others at his company continued to transact with and export items to Seajet and its affiliates.

Specifically, between September 2018 and May 2022, Shih’s company conducted more than 1,000 shipments of items from the United States to Seajet and its alter-ego Hisiang. During that time period, Seajet’s co-owner and his affiliated businesses, including Hisiang, transmitted 34 international wire transfers to accounts held by Shih’s company. The company used the funds to pay various expenses on the transactions, such as air carriers and trucking companies, while retaining a portion of the funds as profit.

Shih and his company knew that Seajet and its co-owner were on the Entity List and that Hisiang was established as an alias for Seajet. For example, Seajet’s co-owner notified Shih by email that Seajet had changed its name to Hisiang for purposes of its international business but that “[t]here is nothing else changed such as company address, structure and policy etc.” Shih then forwarded the email to ten of his employees, copying Seajet’s co-owner and several Seajet employees.

In addition, federal officials repeatedly educated Shih’s company about the Entity List and related laws. In December 2018, after Seajet and its co-owner were added to the Entity List, a BIS official visited Shih’s company to discuss the prohibition against exporting items to Seajet, because it was on the Entity List. Yet, company records from the time revealed that it had used an account code assigned to Seajet for a shipment to Hisiang. In November 2020, another BIS official reached out to Shih’s company and received a list of foreign persons and companies with which Shih’s company would not do business. Yet, the company’s list did not include Seajet, its co-owner, or Hisiang.

Shih pleaded guilty to conspiring to violate the Export Control Reform Act, in violation of 18 U.S.C. § 371, which carries a maximum sentence of up to five years in federal prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, Assistant Secretary for Export Enforcement Matthew S. Axelrod of Department of Commerce Bureau of Industry and Security (BIS), U.S. Attorney Leigha Simonton for the Northern District of Texas, and Executive Assistant Director Robert Wells of the FBI’s National Security Branch announced the case.

The FBI and BIS are investigating the case.

Assistant U.S. Attorney Jay Weimer for the Northern District of Texas and Trial Attorney David J. Ryan of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.

HOUSTON – A 39-year-old legal permanent resident (LPR) from India has been sentenced for conspiracy to commit mail fraud and wire fraud, announced U.S. Attorney Alamdar S. Hamdani.

Sohil Usmangani Vahora, Des Plaines, Illinois, pleaded guilty Oct. 23, 2023.

U.S District Judge Andrew S. Hanen has now ordered him to serve 188 months in federal prison to be immediately followed by three years of supervised release. As an LPR, he could also lose his status in the United States.

Vahora was ordered to pay a combined $3,541,258 in restitution to dozens of individual victims. At the hearing, the court heard that over 80 percent of Vahora’s victims were elderly. Victim impact statements received from 33 victims or their family members described “relentless” phone calls, financial hardship and feelings of shame Vahora and his co-conspirators caused.

“Vahora chose to go all in on India’s predatory call centers, swindling savings from his elderly neighbors while at the same time turning his back on the country that chose to let him in,” said Hamdani. “He saw the money flowing through his organization as nothing more than dollar signs, ignoring the foreign fraudsters who stole money and dashed dreams using a script of fear and lies. Today’s 15-year and eight-month sentence sends the message that people who move a victim’s money are as culpable as the person who initially places the bogus call.”

Between 2017 and 2020, Vahora managed a team of domestic money mules or “runners.” He received work from call centers in India that were perpetrating telemarketing scams in the United States. 

One common script used in the scheme involved coercing victims into believing members of law enforcement were investigating them. The “federal authority” on the phone would convince the victim the only way to clear his or her name from investigation was to buy gift cards and transfer the redemption codes to the call center or mail cash in a package to a name and address the call center provided. Runners in the United States would then deplete the gift card funds and pick up the packages.

At least five runners worked for Vahora over the course of the conspiracy. They picked up hundreds of packages containing cash approximately 280 victims had shipped. Although Vahora lived in the greater Chicago area, he sent his runners all over the country.

Co-conspirator Zaheen Rafikbhai Malvi, 30, Heber Springs, Arkansas, pleaded guilty to conspiracy to commit mail fraud and wire fraud May 15, 2023, and is set for sentencing Dec. 9. At that time, Malvi faces up to 20 years in federal prison and a possible $250,000 maximum fine.

An additional three of Vahora’s runners were previously sentenced to 29, 41 and 60 months in federal prison. 

Vahora will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

The Social Security Administration – Office of Inspector General (SSA-OIG), Treasury Inspector General for Tax Administration, U.S. Postal Inspection Service and Homeland Security Investigations in Houston and Fayetteville, Arkansas, conducted the investigation with the assistance of the FBI and Heber Springs Police Department. Assistant U.S. Attorneys Stephanie Bauman and Kate Suh are prosecuting the case.

The SSA and its OIG consistently warns people of similar scams. Protect yourself! 

A man who recently attempted to enter a church with a tactical rifle has been charged with a federal firearm crime stemming from a 2022 shooting, announced U.S. Attorney for the Northern District of Texas Leigha Simonton. 

Russell Alan Ragsdale, 25, was charged via criminal complaint with possession of a firearm by an unlawful user of a controlled substance. He was arrested on Friday and made his initial appearance before U.S. Magistrate Judge Renée Harris Toliver Monday morning. 

According to court documents, Mr. Ragsdale entered a church at 5:05 p.m. on Nov. 2 alongside about 100 parishioners celebrating mass. After attending services, Ragsdale returned to his vehicle and allegedly retrieved a rifle from his trunk. He then closed the three gates to the parking lot.  At 5:35 p.m., Mr. Ragsdale allegedly attempted to re-enter the church with his rifle, but could not gain access because the parishioners locked the doors. 

During the investigation of the incident at the church, agents learned about a shooting involving Mr. Ragsdale, who was arrested on Feb. 3, 2022 in Seagoville for the felony murder of his roommate.  (The murder case was later dismissed.) At the time, Mr. Ragsdale told Seagoville law enforcement that his roommate attacked him and claimed he “shot him many times” in self-defense.  Officers recovered three firearms, including a 10mm Glock and an AR-15 rifle, and almost two grams of hallucinogenic mushrooms from the residence.  An analysis of Mr. Ragsdale’s phone showed a history of drug use dating back to November 2021, as well as evidence of purchasing and using hallucinogenic mushrooms on Feb. 2, 2022. 

A criminal complaint is merely an allegation of criminal conduct, not evidence.  Like all defendants, Mr. Ragsdale is presumed innocent until proven guilty in a court of law. 

If convicted, he faces up to 15 years in federal prison. 

The Federal Bureau of Investigation’s Dallas Field Office and the Dallas Police Department conducted the investigation with the assistance of the Bureau of Alcohol, Tobacco, Firearms & Explosives’ Dallas Field Division, the Seagoville Police Department, and the Texas Department of Public Safety, which participated in the murder investigation. Assistant U.S. Attorney Jongwoo Chung is prosecuting the case.

An indictment was unsealed yesterday in the Northern District of Texas charging two co-founders of Blueacorn, a lender service provider, in connection with a scheme to fraudulently obtain COVID-19 relief money guaranteed by the U.S. Small Business Administration (SBA) through the Paycheck Protection Program (PPP) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

According to court documents, Nathan Reis, 45, and Stephanie Hockridge, 41, also known as Stephanie Reis, both of Puerto Rico and previously of Arizona, allegedly submitted false and fraudulent PPP loan applications on behalf of themselves and their businesses, including by fabricating documents that they submitted in their loan applications in order to receive loan funds for which they were not eligible.

The indictment also alleges that Reis and Hockridge, who are married, co-founded Blueacorn in April 2020, purportedly to assist small businesses and individuals in obtaining PPP loans. In order to obtain larger loans for certain PPP applicants, Reis and other co-conspirators allegedly fabricated documents, including payroll records, tax documentation, and bank statements. Reis and Hockridge allegedly charged borrowers illegal kickbacks based on a percentage of the funds received.

As part of the alleged scheme, Reis, Hockridge, and others expanded Blueacorn’s operations through lender service provider agreements (LSPAs) with two lenders. Under the LSPAs, Blueacorn collected and reviewed PPP applications from potential borrowers on behalf of the lenders and worked with the lenders to submit applications to the SBA in exchange for a percentage of the fees that the SBA paid to the lenders for approved PPP loans. Blueacorn also had a program called “VIPPP” in which Hockridge and others offered a personalized service to help potential borrowers complete PPP loan applications. Reis and Hockridge allegedly recruited co-conspirators to work as VIPPP referral agents and coach borrowers on how to submit false PPP loan applications. In order to obtain a greater volume of kickbacks from borrowers and percentage of lender fees from the SBA, Reis, Hockridge, and their co-conspirators submitted PPP loan applications that they knew contained materially false information.

Reis and Hockridge are charged with one count of conspiracy to commit wire fraud and four counts of wire fraud. If convicted, they face a maximum penalty of 20 years in prison on each count.

Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Leigha Simonton for the Northern District of Texas; Assistant Director Chad Yarbrough of the FBI’s Criminal Investigative Division; Special Agent in Charge Chris Altemus of the IRS Criminal Investigation (IRS-CI) Dallas Field Office; Special Inspector General for Pandemic Recovery (SIGPR) Brian Miller; Special Agent in Charge John Ellwanger of the Western Division, Office of Inspector General for the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau (FRB-OIG); and Inspector General Hannibal “Mike” Ware of the Small Business Administration Office of Inspector General (SBA-OIG) made the announcement.

FBI, IRS-CI, SIGPR, FRB-OIG, and SBA-OIG investigated the case.

Acting Assistant Chief Philip Trout of the Criminal Division’s Fraud Section, Trial Attorneys Elizabeth Carr and Ryan McLaren of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS), and Assistant U.S. Attorney Matthew Weybrecht for the Northern District of Texas are prosecuting the case.

MLARS’s Bank Integrity Unit investigates and prosecutes banks and other financial institutions, including their officers, managers, and employees, whose actions threaten the integrity of the individual institution or the wider financial system.

The Fraud Section leads the Criminal Division’s prosecution of fraud schemes that exploit the PPP. Since the enactment of the CARES Act, the Fraud Section has prosecuted over 200 defendants in more than 130 criminal cases and has seized over $78 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at www.justice.gov/criminal-fraud/ppp-fraud.

In May 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Justice Department in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The task force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, visit www.justice.gov/coronavirus.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

A methamphetamine trafficker with ties to the CJNG cartel was sentenced Wednesday to 40 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton. 

Adriana Melendez-Calvillo, a 43-year-old citizen and national of Mexico illegally present in the United States, was charged via criminal complaint in February 2023 and pleaded guilty in November 2023 to a criminal information charging conspiracy to possess with intent to distribute methamphetamine and money laundering. She was sentenced Wednesday by U.S. District Judge Brantley Starr. 

According to court documents, in September 2022, agents intercepted a call between Ms. Melendez and a co-conspirator during which they discussed logistics for a drug transaction.  Agents then followed Ms. Melendez’s vehicle to a fast food restaurant, where she met with coconspirators David Garcia and Omar Gilliam, who appeared to transfer something from Ms. Melendez’s back seat to the trunk of their vehicle.  Agents then followed Mr. Gilliam’s vehicle to a gas station, where he removed a grey duffle bag from his trunk and placed it into a third vehicle. Police subsequently pulled over that vehicle for traffic violations; inside the duffel, they found plastic baggies containing 4,886 grams of methamphetamine.  

In plea papers, Ms. Melendez admitted that she arranged for the transfer of that meth. 

At Wednesday’s sentencing hearing, an agent testified that Ms. Melendez had ties to Jalisco New Generation Cartel (CJNG), a notorious transnational drug trafficking organization.  Text messages introduced into evidence at sentencing suggest Ms. Melendez received shipments of meth, cocaine, and other drugs directly from sources of supply in Mexico, and prosecutors noted she electronically transferred $828,094 in proceeds to individuals in Mexico. Ms. Melendez also admitted to attempting to transfer bulk amounts of U.S. currency to Mexico, including $104,750 that was seized by law enforcement. 

Evidence further revealed that Ms. Melendez was involved in the trafficking at least 1,000 pounds of cocaine, 41 kilograms of methamphetamine, and 7.8 kilograms of ice methamphetamine.

Mr. Garcia pleaded guilty in November 2023 to conspiracy to possess with intent to distribute methamphetamine and is slated to be sentenced in January. Mr. Gilliam was charged with conspiracy to possess with intent to distribute methamphetamine and awaits trial. Three other defendants in the case, Juan Pablo Guerra, Gerardo Campos Garcia, and Fatima Garcia, have entered guilty pleas; three more, Hilario Zamago, Ignacio Manzo-Cardenas, and Luis Manuel Abarca Torres, are also awaiting trial. All defendants are presumed innocent until proven guilty in a court of law.

The Drug Enforcement Administration’s Dallas Field Division conducted the investigation with the Richardson Police Department,  the Hickory Creek Police Department, the Dallas Police Department, the Greenville Police Department, the Texas Department of Public Safety, the U. S. Postal Inspection Service, the Dallas County District Attorney’s Office, and the Internal Revenue Service’s  Criminal Investigations Section. Assistant U.S. Attorney George Leal is prosecuting the case. 

This operation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

A Mexican man twice convicted of driving drunk – once with fatal consequences – was sentenced today to 15 years in federal prison for entering the U.S. illegally, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.

Guadalupe Gerardo Reyes-Gonzalez, a citizen of Mexico, was charged with illegal re-entry after removal from the United States shortly after his second DWI. He pleaded guilty in August and was sentenced Wednesday by U.S. District Judge Ada Brown to 15 years in federal prison.

According to state court records, Mr. Reyes-Gonzalez was convicted of intoxicated manslaughter in 1997 after he slammed his vehicle into a pedestrian, causing such severe trauma to his head that he died that same day. Mr. Reyes-Gonzalez’s blood alcohol content was 0.15, nearly twice the legal limit. He was sentenced to eight years imprisonment by the state.   After serving his sentence, the defendant was deported and returned to the U.S. several times.  In 2021, Mr. Reyes-Gonzalez once again drove drunk. He was convicted of DWI and sentenced to three days imprisonment.

At his federal sentencing hearing, Judge Brown noted that the defendant had already killed one U.S. citizen and she was sentencing him to 180 months in federal prison in order to protect the public.

U.S. Immigration & Customs Enforcement conducted the investigation with the cooperation of the Mesquite Police Department, which responded to the DWI. Assistant U.S. Attorney Walt Junker prosecuted the case. 

A Dallas anesthesiologist who injected dangerous drugs into patient IV bags, leading to one death and numerous cardiac emergencies, was sentenced today to 190 years in prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.

Raynaldo Riviera Ortiz Jr., 60, was charged by criminal complaint in September 2022 and indicted the following month on charges related to tampering with IV bags used at a local surgical center. In April, following an eight-day trial, a jury convicted him of four counts of tampering with consumer products resulting in serious bodily injury, one count of tampering with a consumer product and five counts of intentional adulteration of a drug. He was sentenced today by Chief U.S. District Judge David Godbey, who found that Dr. Ortiz caused the death of his colleague and called his other acts “tantamount to attempted murder.”

“The defendant betrayed the trust of patients by tampering with critical medical supplies, and the result was death and serious bodily injury,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Today’s sentence reflects the seriousness of these offenses and should make clear that the Department will work tirelessly to investigate and prosecute anyone who endangers patients by tampering with drugs.”

“This disgraced doctor acted no better than an armed assailant spraying bullets indiscriminately into a crowd. Dr. Ortiz tampered with random IV bags, apparently unconcerned with who he hurt. But he wielded an invisible weapon, a cocktail of heart-stopping drugs, concealed inside an IV bag designed to help patients heal,” said U.S. Attorney Leigha Simonton. “On at least nine separate occasions, he essentially attacked unconscious patients lying on an operating table, and even killed a colleague. I am so proud of our office’s work in bringing Dr. Ortiz to justice and bringing a measure of solace to his victims and their families.”

“Patients expect that their doctors will use only safe and effective medical products during their surgeries. The illicit tampering in this case demonstrated a gross disregard for patient safety,” said Special Agent in Charge Charles L. Grinstead of the Food and Drug Administration’s Office of Criminal Investigations (FDA-OCI). “This investigation uncovered that adulterating the IV bags caused serious adverse health consequences. This sentencing is a clear demonstration that FDA will not stop pursuing and bringing to justice those who risk patients’ health and safety through their criminal actions.”

According to evidence presented at trial, between May and August 2022, numerous patients at Surgicare North Dallas suffered cardiac emergencies during routine medical procedures performed by various doctors. About one month after the unexplained emergencies began, an anesthesiologist who had worked at the facility earlier that day died while treating herself for dehydration using an IV bag. In August 2022, doctors at the surgical care center began to suspect tainted IV bags had caused the repeated crises after an 18-year-old patient had to be rushed to the intensive care unit in critical condition during a routine sinus surgery.

A local lab analyzed fluid from the bag used during the teenager’s surgery and found bupivacaine (a nerve-blocking agent), epinephrine (a stimulant) and lidocaine (an anesthetic) — a drug cocktail that could have caused the boy’s symptoms, which included very high blood pressure, cardiac dysfunction and pulmonary edema. The lab also observed a puncture in the plastic shell that had been around the IV bag.

Evidence presented at trial showed that Ortiz surreptitiously injected IV bags of saline with epinephrine, bupivacaine and other drugs, placed them into a warming bin at the facility, and waited for them to be used in colleagues’ surgeries, knowing their patients would experience dangerous complications. Surveillance video introduced into evidence showed Ortiz repeatedly retrieving IV bags from the warming bin and replacing them shortly thereafter, not long before the bags were carried into operating rooms where patients experienced complications. Video also showed Ortiz mixing vials of medication and watching as victims were wheeled out by emergency responders.

Evidence also showed that Ortiz was facing disciplinary action at the time for an alleged medical mistake made in his one of his own surgeries, and that he potentially faced losing his medical license.

At trial, doctors testified about the confusion they felt when their patients’ blood pressures suddenly skyrocketed. Reviewing medical records, they all noted the emergencies occurred shortly after new IV bags had been hung. Patients recalled waking up unexpectedly intubated in intensive care units they had been transported to via emergency medical transportation services, in pain and in fear for their lives.

At Wednesday’s sentencing hearing, patients and their families testified about the “life-altering” pain they’d endured.  The son of one victim told the Court that his 10-year-old son no longer trusts doctors, because “a doctor tried to kill Pops.”  The father of another recalled with horror seeing Dr. Ortiz’s “dead fish stare” on surveillance video as his victims were wheeled out of the surgery center on gurneys. And a victim who spent five days in the hospital after his cardiac incident said he woke up feeling “all chewed up” and has never been the same since.   

Dr. John Kaspar, the husband of the doctor who died after treating her dehydration with a tainted bag, told the Court the image of his wife’s “lifeless eyes” would never leave him. She was “my life,” “the strongest woman” he’d ever met, he said.

FDA-OCI Special Agents Chad Medaris and Daniel Allgeyer investigated the case with support from the Dallas Police Department. Assistant Director Patrick Runkle of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney John de la Garza for the Northern District of Texas prosecuted the case with the help of Assistant U.S. Attorney Errin Martin. Assistant U.S. Attorney Gail Hayworth for the Northern District of Texas provided appellate support.

A Dallas gang member arrested with a Glock equipped with a gold switch has been detained pending trial, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.

Johnny Bates, 19, was charged via criminal complaint with possession of a machinegun. He was arrested Nov. 7 and ordered detained pending trial after a hearing on Friday.

According to court documents, in December 2023, Mr. Bates was allegedly caught on video firing a pistol that appeared to be fully automatic. Police were unable to apprehend him, but recovered a switch-equipped Glock pistol along the path where he had fled.

In October 2024, Dallas Police Department detectives tracked Mr. Bates, a known “415 East Dallas Posse” gang member, to an apartment in Dallas’s Oak Cliff neighborhood.  Officers attempted to place him under arrest on outstanding warrants from the December 2023 incident, but he resisted. They wrestled him to the ground until backup arrived.

In his backpack, officers found a 9mm Glock pistol equipped with a gold switch and an extended magazine allegedly belonging to Mr. Bates:

A query of the National Integrated Ballistic Information Network (NIBIN) linked the Glock was to an aggravated assault that occurred in Dallas on Sept. 12. (Officers have no reason to believe Mr. Bates was involved in that incident, as a suspect has already been identified.)

At Friday’s detention hearing, officers testified to Mr. Bates’s alleged pattern of possessing machinegun conversion devices, offering images from his Instagram of firearms with switches attached and plainly visible. 

A criminal complaint is merely an allegation of criminal conduct, not evidence. Like all defendants, Mr. Bates is presumed innocent until proven guilty in a court of law. 

If convicted, he faces up to 10 years in federal prison.

The Dallas Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives’ Dallas Field Division conducted the investigation. Assistant U.S. Attorney Robert Withers is prosecuting the case. 

This case is part of “Operation Texas Kill Switch,” a statewide initiative taking aim at machinegun conversion devices, also known as “switches,” which transform commercially available semi-automatic firearms into fully-automatic weapons capable of firing faster than military-grade machine guns. Spearheaded by U.S. Attorneys Leigha Simonton, Alamdar Hamdani, Damien Diggs and Jaime Esparza, Operation Texas Kill Switch relies on partnerships with state and local law enforcement as well as rewards offered by Crime Stoppers.

A criminal who returned to the U.S. within five months of last being deported was sentenced to six years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton. 

Moises Olivos-Hrucha, a 31-year-old citizen of Mexico, was charged in this District with illegal reentry after removal in March 2021, convicted in May 2021, and sentenced in January 2022 to 27 months in federal prison. After serving his sentence, he was deported. Just five months later, in October 2023, he was found back in the state of Texas. He was again charged with illegal reentry after removal and pleaded guilty in May 2024.

He was sentenced on Tuesday, Nov. 19 by U.S. District Judge Ada Brown, who ordered him to serve 68 months for the 2024 conviction and four months on the revocation of supervised release for the 2022 conviction, to run consecutively for a total of 72 months in federal prison. 

At Monday’s sentencing, prosecutors noted Mr. Olivos-Hrucha had engaged in criminal activity in the U.S. multiple times in between deportations. In 2013, he was convicted by the state of robbery and sentenced to five years’ imprisonment after punching the victim’s head, slamming her onto the ground, and dragging her across the ground.

Mr. Olivos-Hrucha will be subject to deportation again after serving his six-year sentence. 

Immigration & Customs Enforcement (ICE) conducted the investigation. Assistant U.S. Attorney Madeleine Case prosecuted the most recent criminal case and revocation; former NDTX Assistant U.S. Attorney Travis Elder (now serving in Utah) prosecuted the original criminal case.

A Dallas real estate developer who bribed two city officials pleaded guilty today, announced U.S. Attorney for the Northern District of Texas Leigha Simonton. 

Sherman Roberts, 70, who previously helmed City Wide Community Development Corporation, was indicted in December 2020 and pleaded guilty Tuesday to conspiracy to commit bribery. 

According to court documents, Mr. Sherman bribed two City Council Members, Mayor Pro Tem Dwaine Caraway and City Council Member Carolyn Davis, to support loans and low income housing tax credits for his apartment projects. 

In return for several thousand dollars in cash – plus the promise of future payments after her city council tenure ended – Council Member Davis lobbied for Mr. Roberts’s real estate projects, including Serenity Place, Runyon Springs, and Patriot’s Crossing. 

She promoted Serenity Place to the City Housing Committee, demanded other developers also seeking real estate funding withdraw their applications in order to increase Mr. Roberts’s chances of success, recommended Serenity Place receive a 9% low income housing tax credit, and voted to approve a $1.9 million City of Dallas loan. 

“Right now you and me are making money,” Mr. Roberts texted Council Member Davis shortly after the vote. 

About a month later, she repeatedly reached out to ask for more money, “just a few dollars.” He agreed.  

Then, she and Mr. Roberts met with Mayor Pro Tem Caraway to address a problem with his Patriot’s Crossing project.

In return for several hundred dollars cash and a $2,000 monthly stipend, Mayor Pro Tem Caraway agreed to stop the city from issuing a request for proposal (RFP) for the Patriots Crossing project and to deliver the project for Mr. Roberts.

“How much is the project worth?” Mayor Pro Tem Caraway asked. “Once you’re successful with this project, don’t forget about me.”

“I won’t forget about you,” Mr. Roberts responded. “That’s where the money is… the money has never been an issue.” 

Mr. Roberts now faces up to five years in federal prison. He is slated to be sentenced on March 12, 2025.

Mayor Pro Tem Caraway pleaded guilty in 2019 to conspiracy to commit honest services fraud and tax evasion and was sentenced to more than four years in federal prison. The same year, City Council Member Carolyn Davis pleaded guilty to conspiracy to commit bribery concerning an agent of a local government receiving federal benefits, but passed away in a car crash before she could be sentenced. 

Mr. Roberts was one of three real estate developers charged in connection with the bribery scandal. Devin Hall, the developer behind the Grand Park Place apartment project, pleaded guilty in August 2020. Ruel Hamilton, the AmeriSouth Realty Group executive who backed the Royal Crest housing project, is awaiting retrial on conspiracy and bribery charges.  

The Federal Bureau of Investigation’s Dallas Field Office conducted the investigation with the assistance of IRS – Criminal Investigation’s Dallas Field Office.  Assistant U.S. Attorney Marcus Busch is prosecuting the case with the help of Assistant U.S. Attorney Donna Max.

An internal medicine doctor was convicted last week of accepting more than $200,000 in kickbacks for sending patient samples to particular labs, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.

Dr. Hector Ubaldo, 60, was indicted in September. After a two-day trial, it took a federal jury just 14 minutes to find him guilty of conspiracy to pay and receive healthcare kickbacks and solicitation and receipt of illegal kickbacks.

According to evidence presented at trial, Dr. Ubaldo accepted cash from so-called “marketers” in return for sending patients’ blood and urine samples to particular labs, including R.K. Clinical, which then billed insurance companies and Medicare for running diagnostic tests.

Dr. Ubaldo also entered into sham medical advisory agreements with the labs and marketers, whereby he was supposed to provided advisory services in exchange for a monthly fee.  The labs and marketers had no need for these advisory services and Dr. Ubaldo provided no such services.  Instead, the medical advisory service agreements served as a fraudulent vehicle to funnel kickback payments to Dr. Ubaldo in exchange for his sending samples to specific labs.

On multiple occasions, one of the marketers met with Dr. Ubaldo at his office and handed over thousands of dollars in cash. Surreptitiously recorded video of the meetings was introduced into evidence in court.

“To tell you the truth, I need the cash,” Dr. Ubaldo told the marketer at one of the meetings. 

Dr. Ubaldo later stated, “The minimum I’m willing to [expletive] take on a monthly basis is about $10 grand.”

Over the course of the scheme, Dr. Ubaldo accepted more than $253,000 in bribes. The lab was able to bill insurers roughly $3.4 million as result of their illegal relationship with Dr. Ubaldo. 

Dr. Ubaldo now faces up to 15 years in federal prison: five years on the conspiracy count and 10 years on the solicitation and receipt count.  Following his conviction, Dr. Ubaldo was taken into custody as he awaits sentencing.

The marketer in question pleaded guilty before trial to one count of conspiracy to pay and receive healthcare kickbacks and now faces up to five years in federal prison.  R.K Clinical owner Kelly Nelson, who also pleaded guilty before trial, was sentenced in May to 30 months in federal prison. 

In total, the Northern District of Texas has prosecuted more than fifteen doctors, marketers, and lab owners connected to this larger scheme over the last several years. 

The Federal Bureau of Investigation’s Dallas Field Office and the Defense Criminal Investigative Service conducted the investigation. Assistant U.S. Attorneys P.J. Meitl and Nancy Larson tried the case. U.S. District Judge Mark Pittman presided Dr. Ubaldo’s trial. 

A convicted drug dealer who violated the terms of his supervised release by brutally beating a domestic partner has been sent back to prison for 10 years, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.

Jose Negron-Cardona, 49, was convicted in 2008 in the District of Puerto Rico of conspiracy to possess with intent to distribute narcotics and brandishing a firearm during a drug trafficking offense.  A U.S. District Judge in Puerto Rico sentenced him to a total of 211 months in prison followed by 10 years of supervised release.

Federal offenders are often subject to a period of post-conviction supervision that can include various conditions, from abstaining from illicit drug use to meeting with a probation officer. Mr. Cardona’s conditions included a prohibition against violating federal, state, or local laws.

After serving time in federal prison, Mr. Cardona was released and began his supervised release on May 27, 2020.  

On June 5, 2024, while living in Grand Prairie, Mr. Cardona viciously assaulted a domestic partner. 

Shortly after the assault, U.S. Probation Office filed a petition to revoke his supervised release. At a hearing on Wednesday, prosecutors argued that Mr. Cardona should be sent back to prison, calling the victim to the stand to testify.  

The victim testified that Mr. Cardona viciously assaulted her, prevented her from calling 911, and repeatedly struck her in the face until she lost consciousness.

U.S. District Judge Ed Kinkeade found by a preponderance of the evidence that Mr. Cardona had committed assault/family violence – a state offense that violated his conditions of supervision – and revoked his supervised release, sentencing Mr. Cardona to an additional 10 years in federal prison (five years per count, to run consecutively).

“If this defendant thought he could savagely beat a woman without repercussion, he was sorely mistaken. While we take all violations of supervised release seriously, we are especially concerned by instances of domestic violence. For the next decade, his victim will be able to sleep soundly at night knowing he is once again behind bars,” said U.S. Attorney Leigha Simonton.

The Grand Prairie Police Department conducted the investigation into the assault. The United States Probation Office provided valuable assistance. Assistant U.S. Attorneys Michelle Winters and Ted Hocter argued for revocation and imprisonment.

A local medical center has paid $14.2 million to settle potential violations of Medicare regulations and the physician self-referral law (commonly known as the Stark Law) related to four outpatient surgery centers located in Dallas County, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.  The United States contends that these potential violations resulted in liability under the False Claims Act.

Horizon Medical Center of Denton, which is owned by Corinth Investor Holdings, L.L.C. and operates a long-term acute care hospital with multiple Dallas County outpatient surgery centers, voluntarily self-disclosed its conduct to the Department of Justice.  Specifically, Horizon self-disclosed that when submitting claims for payment to Medicare, it failed to include a “PN” modifier and location to identify services that were provided at its non-excepted off-campus outpatient facilities in Dallas, Richardson, and Coppell.  As part of its disclosure, Horizon provided an analysis from an independent third-party expert regarding the financial impact of omitting the “PN” modifier.  It also disclosed the existence of Hospital Department Management Agreements at each facility by which Horizon contracted with certain third-party management companies that were affiliated with physicians performing surgery at the outpatient facilities, as well as Operating Lease Agreements by which Horizon contracted for the lease of certain equipment from companies directly or indirectly owned by a physician performing procedures at the surgery centers.  These agreements created financial relationships between Horizon and the physician-owners.

“This office will continue to make sure that companies follow the rules of the road when submitting claims to federal healthcare programs,” said U.S. Attorney Leigha Simonton. “And while we will never condone unlawful conduct, we will continue to credit companies that voluntarily self-disclose misconduct prior to the government initiating an investigation.”

The Horizon settlement is the latest in a string of three civil settlements announced by the U.S. Attorney’s Office for the Northern District of Texas over the last year in which the settling party received credit for making a self-disclosure under the Department of Justice’s Guidelines for Taking Disclosure, Cooperation, and Remediation into Account in False Claims Act Matters. 

In another case, Oliver Street Dermatology Management (d/b/a U.S. Dermatology Partners) paid the United States $8.9 million after self-disclosing that credible evidence suggested that former senior managers had offered to increase the purchase price of 11 dermatology practices acquired by the company in return for an agreement by the practices’ providers to refer services to Oliver Street affiliated entities, in possible violation of the Stark Law and the Anti-Kickback Statute.

And in a third case, Consolidated Nuclear Security, L.L.C., which operates the Pantex Nuclear Weapons Plant in Amarillo, paid $18.4 million after self-disclosing that certain production technicians at the plant fraudulently recorded on their timesheets hours they did not work.

In all three cases noted above, the self-reported conduct was unknown to the United States at the time of the self-disclosure and was specific as to the nature of the potentially problematic transactions, the personnel involved, and the potential financial impact on the government.  All three settlements credited the companies for their self-disclosure and collaboration with government investigators.  The claims resolved by the settlement agreements are allegations only, and there has been no determination of liability.

These civil settlements come as the U.S. Attorney’s Office for the Northern District of Texas announced its implementation of the recent USAO-wide voluntary self-disclosure (VSD) policy, which aims to provide transparency and predictability to companies and the defense bar concerning the benefits and potential outcomes in cases where companies voluntarily self-disclose misconduct, fully cooperate, and timely and appropriately remediate.  The goal of the policy is to standardize how voluntary self-disclosures are defined and credited by U.S. Attorney’s Offices nationwide.  It is also intended to incentivize companies to maintain effective compliance programs capable of identifying misconduct, to expeditiously and voluntarily disclose and remediate misconduct, and to cooperate fully with the government in investigations.

The Horizon resolution is the result of a coordinated effort between the U.S. Attorney’s Office for the Northern District of Texas and the U.S. Department of Health & Human Services’ Office of Inspector General.  This matter was handled by Assistant U.S. Attorneys Ken Coffin and Brian Stoltz.

A Nigerian man was sentenced today to more than 26 years in prison for conning prospective homeowners and others out of down payments using a “man-in-the-middle” email phishing and spoofing attack, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.

Kolade Akinwale Ojelade, a 34-year-old Nigerian national living abroad in Leicester, was indicted in February 2023. He was extradited from the U.K. to the U.S. in April 2024 and three months later pleaded guilty to wire fraud affecting a financial institution and aggravated identity theft.  He was sentenced Friday by U.S. District Judge Reed O’Connor to 292 months on the wire fraud count and 24 months on the identity theft count to run consecutively for a total of 316 months in federal prison. Judge O’Connor also ordered him to pay $3,386,908 in restitution.

“Even the most conscientious among us could get taken in by a man-in-the-middle scam as devious as this one. Luckily, there are steps we can take to protect ourselves, including confirming wiring instructions in person or by phone,” said U.S. Attorney Leigha Simonton. “For the next quarter-century, Mr. Ojelade will be behind bars, no longer able to scam innocent homebuyers. We are proud to hold him accountable for his crimes.”

“Mr. Ojelade callously engaged in a scheme that stole millions of dollars from prospective homeowners and real estate companies. Today’s sentence reflects the seriousness of his crimes. Financial crimes can be devastating for individuals and companies because most times those monetary funds are never recovered,” said P.J. O’Brien, Acting Special Agent in Charge of the FBI Dallas Division. “We will continue working with our law enforcement partners domestically and internationally to hold individuals accountable for defrauding unsuspecting victims.”

According to court documents, Mr. Ojelade sent phishing emails to real estate businesses, gained unauthorized access to many of their accounts, and monitored their email traffic to determine when large transactions were about to take place. He then intercepted wire payment instructions, changed the information, and resent the emails via spoofed email addresses that mimicked the original senders’ addresses. 

Unbeknownst to the victims – including prospective homeowners wiring money to real estate companies and real estate companies wiring money to title companies – the modified wiring instructions directed them to accounts controlled by Mr. Ojelade and his co-conspirators. Once the funds hit the accounts, Mr. Ojelade and his coconspirators withdrew the money or transferred it into other bank accounts.

At Mr. Ojelade’s sentencing hearing, prosecutors noted that the intended loss was more than $100 million and the actual loss was approximately $12 million. 

After serving his sentence, Mr. Ojelade will be subject to deportation. 

The Federal Bureau of Investigation’s Dallas Field Office conducted the investigation, with substantial assistance from FBI International Operations at Mission U.K., United Kingdom authorities, and the U.S. Marshals Service. The Justice Department’s Office of International Affairs provided substantial assistance in securing the arrest and extradition of Mr. Ojelade from the United Kingdom. Assistant U.S. Attorney Matthew Weybrecht is prosecuting the case. 

The Consumer Financial Protection Bureau advises prospective homeowners to confirm wiring instructions – including account numbers – in person or by phone, and instructs anyone who believes they may have fallen victim to a scam to call their banks as soon as possible to ask for a wire recall.  

The U.S. Attorney’s Office for the Northern District of Texas announces its implementation of a newly revised national policy detailing the circumstances under which a company will be considered to have made a voluntary self-disclosure (VSD) of misconduct to the USAO, announced U.S. Attorney Leigha Simonton.

The Department-wide USAO VSD policy, which was initially announced in February 2023—but was expanded with the addition of the M&A Safe Harbor provisions in March 2024—aims to provide transparency and predictability to companies and the defense bar concerning the benefits and potential outcomes in cases where companies voluntarily self-disclose misconduct, fully cooperate, and timely and appropriately remediate.

The goal of the policy is to standardize how voluntary self-disclosures are defined and credited by USAOs nationwide. It is also intended to incentivize companies to maintain effective compliance programs capable of identifying misconduct, to expeditiously and voluntarily disclose and remediate misconduct, and to cooperate fully with the government in corporate criminal investigations.

Under the policy, a company is considered to have made a VSD if it discloses misconduct by employees or agents before that misconduct is publicly reported or otherwise known to the government.[1] A company must also disclose all relevant facts known to the company about the misconduct to the USAO in a timely fashion and before any imminent threat of disclosure or government investigation.[2]

A company that voluntarily self-discloses, as defined in the policy, and fully meets the other requirements of the policy by fully cooperating, timely and appropriately remediating the criminal conduct, and paying appropriate penalties will receive significant benefits. These include that the USAO may choose not to seek a guilty plea, not to impose any criminal penalty and/or not to impose a criminal penalty that is greater than 50% below the low end of the U.S. Sentencing Guidelines fine range, and not to seek the imposition of an independent compliance monitor if the company demonstrates that it has implemented and tested an effective compliance program.

The policy identifies three aggravating factors that may warrant a USAO seeking a guilty plea, even if the other requirements of the VSD policy are met. These include if the misconduct poses a grave threat to national security, public health, or the environment; if the misconduct is deeply pervasive throughout the company; or if the misconduct involved current executive management of the company. The presence of an aggravating factor does not necessarily mean that a guilty plea will be required. Instead, the USAO will assess the relevant facts and circumstances to determine the appropriate resolution. If a guilty plea is ultimately required, the company will still receive the other benefits under the VSD policy. The USAO will recommend a criminal penalty of at least a 50% reduction, and up to a 75% reduction, off the low end of the USSG fine range and will not require the appointment of a monitor if the company has implemented and tested an effective compliance program.

As noted in the March 7, 2024 revisions to the USAO VSD policy, the policy applies to misconduct uncovered in the context of M&A pre- and post-acquisition due diligence.  See also JM 9-28.900 (the M&A Policy). An acquiring company that voluntarily discloses misconduct to the USAO pursuant to the M&A Policy and otherwise satisfies the requirements of the USAO VSD policy by fully cooperating, timely and appropriately remediating, and paying any applicable disgorgement/forfeiture and/or victim compensation payments/restitution will receive a presumption of a declination, even if aggravating factors existed as to the acquired company.

In cases where the USAO and another DOJ component are jointly prosecuting a company and/or jointly investigating the misconduct the company voluntarily self-reports pursuant to the VSD, the USAO will coordinate with or, if necessary, obtain approval from the DOJ component responsible—including, as appropriate, taking into consideration the VSD policy specific to that DOJ component—in considering a potential resolution.

Consistent with longstanding DOJ policy, the USAO will evaluate disclosures submitted pursuant to this policy to determine whether or to what extent coordination between the Criminal and Civil Divisions of the USAO is appropriate. See JM 1-12.000. To the extent a disclosure submitted pursuant to the USAO VSD policy involves misconduct that could serve as the basis for False Claims Act (“FCA”) liability, the disclosure will be reviewed in accordance with the Guidelines for Taking Disclosure, Cooperation, and Remediation into Account in False Claims Matters issued by the Fraud Section of the Civil Division of the Department of Justice. See JM 4-4.112.

Since September 2023, the USAO-NDTX has resolved three matters involving potential violations of the False Claims Act based on conduct self-reported to the government. [3] In each of these matters, the government executed a settlement agreement releasing the reporting company from liability under the FCA and crediting the company for self-reporting the conduct consistent with section 4-4.112 of the Justice Manual.   

Companies wishing to make a self-disclosure to the U.S. Attorney's Office for the Northern District of Texas may do so by email to: USATXN.CORPVSD@USDOJ.GOV. 

[1] Regardless of whether a disclosure meets the standards of a VSD, prosecutors will continue to consider a corporation’s pre-indictment conduct, e.g., voluntary disclosure or cooperation, in determining whether to seek an indictment. JM § 9-28.400. Separate from this formal VSD Program, the Department continues to encourage corporations, as part of their compliance programs, to conduct internal investigations and to disclose the relevant facts to the appropriate authorities. See JM § 9-28.900. A corporation’s timely and voluntary disclosure of wrongdoing is among the factors prosecutors should consider in reaching a decision as to the proper treatment of a corporate target in conducting an investigation, determining whether to bring charges, and negotiating plea or other agreements. See JM § 9-28.300. Prosecutors may also consider a corporation’s timely and voluntary disclosure, as an independent factor in evaluating the company’s overall cooperation and the adequacy of the corporation’s compliance program and its management’s commitment to the compliance program. See JM § 9-28.900.

[2] Consistent with the Department of Justice Criminal Division’s Corporate Whistleblower Awards Pilot program, companies that voluntarily self-report within 120 days of receiving an internal whistleblower report may still be eligible for benefits under this VSD policy provided the company self-reports prior to the Department of Justice contacting the company.

[3]See Dermatology Management Company to Pay $8.9 Million to Resolve Self-Reported False Claims Act Liability, https://www.justice.gov/usao-ndtx/pr/dermatology-management-company-pay-89-million-resolve-self-reported-false-claims-act (Sept. 13, 2023); Consolidated Nuclear Security Agrees to Pay $18.4 Million to Settle False Claims Act Allegations of Timecard Fraud, https://www.justice.gov/opa/pr/consolidated-nuclear-security-agrees-pay-184-million-settle-false-claims-act-allegations (Apr. 23, 2024); North Texas Medical Center Pays $14.2 Million to Resolve Potential False Claims Act Liability for Self-Reported Violations of Medicare Regs, Stark Law, https://www.justice.gov/usao-ndtx/pr/north-texas-medical-center-pays-142-million-resolve-potential-false-claims-act (Nov. 4, 2024).

United States Attorney Leigha Simonton announced today that the Justice Department will monitor compliance with federal voting rights laws in Dallas County and Palo Pinto County for the Nov. 5 general election.

The Justice Department enforces federal voting rights laws that protect the rights of all eligible citizens to access the ballot. The department regularly deploys its staff to monitor for compliance with federal civil rights laws in elections in communities all across the country. 

The Justice Department’s Civil Rights Division will coordinate the effort. Monitors will include Justice Department personnel, who will contact state and local election officials as needed throughout Election Day. 

The Civil Rights Division’s Voting Section enforces the civil provisions of federal statutes that protect the right to vote, including the Voting Rights Act, National Voter Registration Act, Help America Vote Act, Uniformed and Overseas Citizens Absentee Voting Act and Civil Rights Acts. The division’s Disability Rights Section enforces the Americans with Disabilities Act (ADA) to ensure that persons with disabilities have a full and equal opportunity to vote. The division’s Criminal Section enforces federal criminal statutes that prohibit voter intimidation and voter suppression based on race, color, national origin or religion. 

On Election Day, Civil Rights Division personnel will be available all day to receive questions and complaints from the public related to possible violations of federal voting rights laws. Reports may be made through the department’s website www.civilrights.justice.gov or by calling toll-free at 800-253-3931. 

Individuals with questions or complaints related to the ADA may call the department’s toll-free ADA information hotline at 800-514-0301 or 833-610-1264 (TTY) or submit a complaint through a link on the department’s ADA website at www.ada.gov.

Complaints related to any disruptions at a polling place should always be reported to local election officials (including officials based in the polling place). Complaints related to violence, threats of violence or intimidation at a polling place should be reported immediately to local police authorities by calling 911. These complaints should also be reported to the department after local authorities have been contacted.

More information about voting and elections, including guidance documents and other resources, is available at www.justice.gov/voting.

Learn more about the Voting Rights Act and other federal voting laws at www.justice.gov/crt/voting-section.

Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by complaint form at https://civilrights.justice.gov/ or by phone at 800-253-3931.

A Fort Worth man on a deferred adjudication for dealing the heroin that killed a 21-year-old in 2013 has been charged with federal gun crimes, announced U.S. Attorney for the Northern District Leigha Simonton.

Brennan Trainor Rodriguez, 33, was charged Wednesday in a two-count indictment alleging illegal possession of a machinegun and illegal receipt of a firearm by a person under indictment.  

According to court records, Mr. Rodriguez was charged on June 7, 2013, with injecting heroin into a 21-year-old man who suffered a fatal overdose. He admitted to causing the man’s death and was placed on 10 years of deferred adjudication beginning on Nov. 26, 2014. Conditions of his community supervision prohibited him from possessing firearms. (Until the deferred adjudication period concludes, Mr. Rodriguez is still considered under indictment.)  

On Aug. 6. 2024, law enforcement responded to a domestic disturbance call from Mr. Rodriguez’s former girlfriend, who told police that the defendant had been stalking and harassing her since their breakup. She also reported that Mr. Rodriguez frequently shot guns, including one that fired fully automatic.  

The following week, Mr. Rodriguez was arrested for stalking. In searching his home, law enforcement found nine firearms, including a Smith & Wesson rifle equipped with a machinegun conversion device, commonly known as a “switch” or “auto sear.”

An indictment is merely an allegation of criminal conduct, not evidence. Mr. Rodriguez is presumed innocent until proven guilty in a court of law.

If convicted of the gun crimes, he faces up to 10 years in federal prison.

Meanwhile, Mr. Rodriguez’s state court cases remain pending.  

The Bureau of Alcohol, Tobacco, Firearms, & Explosives’ Dallas Field Division – Fort Worth Resident Agency and the Fort Worth Police Department conducted the investigation. Assistant U.S. Attorney Eric B. Chen is prosecuting the case.

A high-volume drug trafficker operating out of a Dallas motel room pleaded guilty today to federal drug and gun charges, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.

Kenan Bernard Allen, aka “King,” 38, was charged via criminal complaint in April 2023 and indicted the following month. He pleaded guilty Thursday to one count of conspiracy to possess with intent to distribute controlled substances and one count of possession of a firearm by a convicted felon.

“Mr. Allen and other violent drug traffickers dispersed huge quantities of deadly drugs and assaulted their customers. They preyed on users’ crippling addictions, raking in money hand over fist,” said U.S. Attorney Leigha Simonton. “The U.S. Attorney’s Office and our law enforcement partners will not stop until we rid the streets of those that prey upon the vulnerable in our communities.”

According to court documents, Mr. Allen and several coconspirators operated a trap room at a Dallas motel, where they cut, packaged, and distributed large quantities of fentanyl, heroin, crack cocaine, methamphetamine, and other drugs. At least eight defendants later admitted the motel was a location for habitual criminal activity.

Customers seeking drugs were let into the room by a doorman and instructed to place an order behind the service station. Customers often smoked or ingested the drugs inside the hotel room after making their purchase.  The coconspirators armed themselves with handguns and AK-47 style rifles and installed security cameras inside the motel to monitor for law enforcement and to prevent workers from stealing drugs.  Law enforcement agents conducting surveillance observed children as young as three years old coming in and out of the trap rooms in the motel, and images of young children were seen on video surveillance footage in the trap rooms where powdered fentanyl was being placed into capsules by workers and then sold to customers.

According to court documents, the motel was the site of frequent violence. On one occasion, Mr. Allen and several coconspirators restrained a victim in the breezeway of a hotel and used a broom handle and a trash can to strike the victim in the face and body. On another occasion, Mr. Allen and a coconspirator violently attacked a victim in the parking lot. On a third occasion, a codefendant used a handgun to pistol-whip a victim while Mr. Allen looked on. And on a fourth occasion, a coconspirator used a lighter to burn the foot of a female customer who had passed out after ingesting drugs she purchased in the room. All of the assaults were caught on video.

On April 19, 2023, law enforcement executed a search warrant inside two trap rooms inside the motel: Mr. Allen’s trap room, no 222, and another trap room, no 111, where they saw drugs in plain view. In total, law enforcement agents recovered more than two kilograms of methamphetamine, 108 grams of fentanyl, 198 grams of heroin, 168 grams of cocaine, 1,183 grams of marijuana, 44.8 grams of psilocybin mushrooms, 23 grams of hydrocodone, 6 grams of morphine, 15 grams of alprazolam, 2.6 grams of PCP, seven handguns, and an AK-47 style rifle, along with a ballistic vest and multiple drug scales.

Mr. Allen now faces up to 20 years in federal prison and a $5 million fine. His sentencing is set for March 7, 2025.

To date, six other defendants have pleaded guilty in the case, including Brandon Demonte Jones, aka “Money,” Jaleel Javeirre Jaquan Peterson, Glenn Malcom Blair, aka “Slim,” Corey Lanard Allen, Jr, Derrick Alan Richardson, and Antoine Marquin Thompson-Steven. A seventh defendant,  and Kenneth Ray Peters, aka “Fat Boy,” has filed plea papers signaling his intent to plead guilty. The final defendant, Orlando Keith Spells, aka “Kilo,” is set for trial on January 6, 2025. (Mr. Spells is presumed innocent until proven guilty in a court of law.)

The Texas Department of Public Safety and Dallas Police Department conducted the investigation. Assistant U.S. Attorney Rick Calvert is prosecuting the case. 

United States Attorney Leigha Simonton announced that Assistant United States Attorney (AUSA) Matthew Weybrecht will lead the efforts of the in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 5, 2024, general election.  AUSA Weybrecht  has been appointed to serve as the District Election Officer (DEO) for the Northern District of Texas, and in that capacity is responsible for overseeing the District’s handling of election day complaints of voting rights concerns, threats of violence to election officials or staff, and election fraud, in consultation with Justice Department Headquarters in Washington.

United States Attorney Simonton said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted in a fair and free election.  Similarly, election officials and staff must be able to serve without being subject to unlawful threats of violence.  The Department of Justice will always work tirelessly to protect the integrity of the election process.”

The Department of Justice has an important role in deterring and combatting discrimination and intimidation at the polls, threats of violence directed at election officials and poll workers, and election fraud.  The Department will address these violations wherever they occur.  The Department’s longstanding Election Day Program furthers these goals and also seeks to ensure public confidence in the electoral process by providing local points of contact within the Department for the public to report possible federal election law violations.

Federal law protects against such crimes as threatening violence against election officials or staff, intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input.  It also contains special protections for the rights of voters, and provides that they can vote free from interference, including intimidation, and other acts designed to prevent or discourage people from voting or voting for the candidate of their choice.  The Voting Rights Act protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or inability to read or write in English). 

United States Attorney Simonton stated that: “The franchise is the cornerstone of American democracy.  We all must ensure that those who are entitled to the franchise can exercise it if they choose, and that those who seek to corrupt it are brought to justice.  In order to respond to complaints of voting rights concerns and election fraud during the upcoming election, and to ensure that such complaints are directed to the appropriate authorities, AUSA/DEO Matt Weybrecht will be on duty in this District while the polls are open.  He can be reached by the public at the following telephone number: 817-252-5221.”

In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day.  The FBI’s Dallas Field Office can be reached by the public at 972-559-5000.

Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by complaint form at https://civilrights.justice.gov/ or by phone at 800-253-3931.

United States Attorney Simonton said, “Ensuring free and fair elections depends in large part on the assistance of the American electorate.  It is important that those who have specific information about voting rights concerns or election fraud make that information available to the Department of Justice.”

Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities.  State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.

###

A would-be lawyer who falsely inflated dozens of client tax returns was sentenced Tuesday to more than 15 years in federal prison for tax fraud, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.

John Anthony Castro, 40, owner of the virtual tax preparation business Castro & Company, was indicted in January. Following a five-day bench trial before Senior U.S. District Judge Terry R Means, he was convicted on all 33 counts of assisting in the preparation of a fraudulent return and was immediately taken into custody. Judge Means sentenced him Thursday to 188 months in prison and ordered him to pay $277,243 in restitution.

“Far from an ‘international tax expert,’ this defendant was an international fraudster, plain and simple,” said U.S. Attorney Leigha Simonton. “Not only did he defraud the U.S. government, he bullied and berated clients who dared question his methods. Today’s sentencing should send a message to tax preparers nationwide: Lie on clients’ returns at your own peril.”

“Mr. Castro prepared and filed completely fraudulent and fabricated tax returns for one reason: greed,” stated Special Agent in Charge Jenifer L. Piovesan, IRS Criminal Investigation, Newark Field Office.  “Today’s sentence highlights IRS-CI’s diligence in rooting out dishonest tax return preparers whose only motive is to cheat the system and make themselves richer in the process.”

According to evidence presented in court, Mr. Castro – who had graduated law school but repeatedly failed the bar exam – held himself out as an “international tax expert” and “federal practitioner.” (He also falsely claimed to be a graduate of West Point.)

He was successful at marketing to clients around the world, claiming to be an expert on certain tax issues related to Australian ex-pats, among other things.  Between 2017 and 2019, he filed more than 1,900 tax returns on behalf of individuals from all over the world.

As part of his pitch, Mr. Castro promised his clients a significantly higher refund than they would receive from other preparers, claiming he knew how to identify and claim deductions that others did not.  He added there was no risk, as he would simply split the additional refund amount with them to account for his fee.  He would not share the tax return with clients before filing, but would instead simply inform them of the amount of the anticipated refund.

On many occasions, he filed tax returns on behalf of clients without their permission or knowledge.  In other instances, he claimed deductions that had no basis in fact.  For example, for one client, who made approximately $103,000 in income, Mr. Castro claimed over $90,000 in deductions related to unreimbursed employee expenses.

Mr. Castro claimed deductions based on extreme and unsupported legal theories, including deductions such as (1) those for any expense related to preventing an illness qualified as an “impairment related work expense,” (2) those for expenses related to commuting to and from work, (3) the full value of one’s mortgage and utilities as long as the taxpayer had some type of Schedule C business to claim, (4) those related to dry-cleaning for work clothes, and (5) the full value of one’s cell phone bill even when their employer provided them with a work phone.  For example, with respect to one client, Mr. Castro deducted over $26,000 in expenses that he claimed related to a nascent cupcake business that had generated only $250 in revenue.

According to trial testimony, in February 2018, an undercover IRS – CI agent contacted Mr. Castro for assistance. The agent asked to meet with Mr. Castro in person, but Mr. Castro’s office told him that in-person meetings required a $5,000 retainer. They spoke via email instead.

On February 13, 2018, the undercover agent submitted a W2 and a Form 1098-T showing wages of $142,217. About two weeks later, one of Mr. Castro’s employees called the agent to discuss deductions, noting that Mr. Castro would make any decisions regarding what items would be included on the tax filing.

The agent denied having any unreimbursed employee expenses, charitable contributions, or other items that could lead to deductions.

On March 12, 2018, Mr. Castro sent the undercover agent his tax analysis. He said that if the agent used another preparer, he would receive a refund of $373, but that if he used Mr. Castro, he would receive a refund of $6,007. Mr. Castro would take half, netting him $3,008. The analysis said the return would include $29,339 in deductions but did not specify which deductions would be used.

Two days later, Mr. Castro filed the agent’s return, which claimed $29,339 in fraudulent deductions, including $2,400 in employee expenses, and 28,600 in other expenses that the undercover agent had never discussed with Mr. Castro or his employees.

According to evidence presented at trial, Mr. Castro engaged in a similar pattern with his other clients. When the victim-taxpayers learned what Mr. Castro had done, many of them demanded copies of their tax returns. Mr. Castro refused to engage in conversation and even delayed providing returns for months at a time.  Mr. Castro often acted in a highly vindictive manner when questioned or challenged by clients or others, often berating individuals in emails, threatening legal actions, or by filing amended tax returns, without clients’ permission or knowledge, that removed all deductions, causing the taxpayer-victim to then owe the IRS tens of thousands of dollars. 

During the trial, Mr. Castro took the stand in his own defense, and upon cross-examination, admitted that his positions were extreme, outlandish, and not supported by the law.  He also admitted to a bevy of prior falsifications and vindictive actions.

Many of the victim-taxpayers have since been audited and/or filed amended returns, causing them significant financial hardship.

IRS Criminal Investigation conducted the investigation.  Assistant U.S. Attorneys P.J. Meitl and Nancy Larson are prosecuting the case. 

The men responsible for eight mail carrier robberies were sentenced today to a combined 21 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton. 

Jerrad Coleman, 18, and Louis Dixon, 18, were charged via criminal complaint in April. Mr. Dixon pleaded guilty in June to robbery of property of the United States and conspiracy to rob and unlawfully possess property of the United States, while Mr. Coleman pleaded guilty to the same charges the following month.

The pair were sentenced Tuesday by U.S. District Judge Mark Pittman, who noted that the U.S. Postal Service is critical to the functioning of our country and called their crime a “heinous offense.” Mr. Coleman was sentenced to 60 months on count one and 91 months on count two to run consecutively, for a combined 151 months (12 ½ years) in federal prison; Mr. Dixon was sentenced to 60 months on count one and 108 months on count two to run concurrently for a total of 108 months (9 years) in federal prison. 

“Violence against letter carriers not only puts federal workers in fear for their lives, but also undermines the functioning of the U.S. postal system,” said U.S. Attorney Leigha Simonton.  “The U.S. Attorney’s Office will continue to aggressively pursue and prosecute individuals that endanger our Postal colleagues and the system as a whole.” 

“Today’s sentencing serves as a notice to those who wish to commit violent acts against U.S. Postal Service employees that the U.S. Postal Inspection Service, along with our law enforcement partners, are committed to finding those responsible and bringing justice to the victims. U.S. Postal Service employees are delivering across America and deserve to work in their communities free from danger,” said Kai Pickens, Inspector in Charge of the U.S. Postal Inspection Service, Fort Worth Division.

 According to court documents, the men trawled the streets of DFW looking for U.S. Postal Service letter carriers to rob in hopes of obtaining an Arrow Key, a master key used by letter carriers to gather mail deposited in blue collection boxes. Unauthorized possession of these keys, prized by mail thieves, allows individuals to illicitly access mailboxes to steal victim mail, checks, credit cards, bank account information, and other sensitive information. 

Over the course of about four months, the men conspired to commit robberies against U.S. Postal Service Letter Carriers, including those on Jan. 17 in Fort Worth, Jan. 18 in Fort Worth, Jan. 25 in Dallas, Jan. 29 in Dallas, March 15 in Fort Worth, March 28 in Arlington, April 4 in Frisco, and April 17 in Fort Worth. 

After robbing the mail carriers, often at gunpoint, the men fled in getaway vehicles. They then unlawfully used, sold, or disposed of the Arrow Keys.

The U.S. Postal Inspection Service conducted the investigation with the help of the Arlington, Dallas, Fort Worth, and Frisco Police Departments. Assistant U.S. Attorney Levi Thomas prosecuted the case.

Twelve alleged cocaine dealers we arrested in Lubbock last week, announced U.S. Attorney for the Northern District of Texas Leigha Simonton. 

Eleven of the defendants made their initial appearances Monday before U.S. Magistrate Judge Amy Burch.

Those charged in a 17-count indictment unsealed today include:

• Esteban Renee Garcia, charged with conspiracy to distribute cocaine, distribution of cocaine, attempted distribution of cocaine, and unlawful use of a communications facility
• Rodrick Deone Hall, aka “Dirty,” charged with conspiracy to distribute cocaine, distribution of cocaine base, attempted distribution of cocaine, and unlawful use of a communications facility
• Leticia Chavez, charged with conspiracy to distribute cocaine and distribution of cocaine
• Shannon Sainz, charged with conspiracy to distribute cocaine and unlawful use of a communications facility
• Janie Reyna, charged with conspiracy to distribute cocaine, attempted distribution of cocaine, and unlawful use of a communications facility
• Anthony “AV” DeLeon, charged with conspiracy to distribute cocaine, attempted distribution of cocaine, and unlawful use of a communications facility
• Isaac “Ike” Rodriguez, charged with conspiracy to distribute cocaine, attempted distribution of cocaine, and unlawful use of a communications facility
• Anthony McIntire, aka “Ace,” charged with conspiracy to distribute cocaine, distribution of cocaine, attempted distribution of cocaine, and unlawful use of a communications facility
• Roland Vasquez Gomez, charged with conspiracy to distribute cocaine, attempted distribution of cocaine, and unlawful use of a communications facility
• Rodrick Lamont Bibbs, charged with conspiracy to distribute cocaine and possession with intent to distribute cocaine base
• Michael Tijerina,  charged with conspiracy to distribute cocaine and distribution of cocaine

As a result of the operation, the twelfth defendant, Miguel Ramirez-Pedroza, was arrested and charged via criminal complaint with possession with intent to distribute cocaine. (His initial appearance in federal court will be scheduled at a later date.)

During last week’s operation, agents searched six locations and seized approximately six kilograms of cocaine, five firearms, and $55,000 in cash.

An indictment or complaint is merely an allegation of criminal conduct, not evidence. All defendants are presumed innocent until proven guilty in a court of law.

If convicted, some defendants face potential life sentences in federal prison.

The Drug Enforcement Administration’s Dallas Field Division – Lubbock Resident Office conducted the investigation with the assistance of the U.S. Marshals Service, Homeland Security Investigations’ Dallas Field Division, the Bureau of Alcohol, Tobacco, Firearms & Explosive’s Dallas Field Division – Lubbock Resident Agency, the Lubbock County Sheriff’s Office, the Lubbock Police Department, the Texas Department of Public Safety, and the Plainview Police Department. Assistant U.S. Attorneys Sean Long and Ryan Redd are prosecuting the case.

The operation was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCEDTF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threat the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. 

A switch dealer who shot a machinegun out the window of a moving vehicle on a public highway pleaded guilty to a federal firearm crime, announced U.S. Attorney for the Northern District of Texas.

Juan Angel Rendon, 18, was charged via criminal complaint in September and indicted the following month. He pleaded guilty on Wednesday to illegal possession of a machinegun.

“As we said when we launched Operation Texas Kill Switch, machinegun conversion devices are putting our communities in danger. This defendant’s conduct – shooting a switch-equipped handgun out of a moving vehicle for no apparent reason – is case in point,” said U.S. Attorney Leigha Simonton. “Weapons of war belong on the battlefield, not the streets North Texas streets. The U.S. Attorney’s Office will relentlessly pursue anyone who manufactures, sells, or possesses machinegun conversion devices.”

“The brazenness of Mr. Rendon shown here does not surprise me. We are seeing similar videos all around the country which is why ATF is doubling down on our unwavering commitment to stopping the spread of machinegun conversion devices. We commend all our law enforcement partners across the region as we work together in this fight. Firing a machinegun wildly in public, while being filmed, may have made Mr. Rendon feel like a gangster that evening. However, he will now have plenty of time in prison to think about how isn’t a modern-day Capone” stated ATF Dallas Field Division Special Agent in Charge Jeffrey C. Boshek II.

According to court documents, Mr. Rendon sold a 9mm Glock pistol equipped with a machinegun conversion device, colloquially known as a “switch,” to an undercover ATF agent on Aug. 27, 2024.

During the purchase, which occurred at his mobile home, Mr. Rendon explained to the undercover agent how to install and operate the machinegun conversion device so the gun would fire full auto.

At a detention hearing last month, agents testified that Mr. Rendon advertised Glock switches for sale on his Instagram. At the hearing, prosecutors played a video from Mr. Rendon’s Instagram account showing him firing a switch-equipped Glock out the window of a moving vehicle on a public highway, with cars visibly passing by in the distance.

When he was arrested in September, agents recovered nine firearms, including two equipped with switches, and seven additional switches or switch parts.

A query of the National Integrated Ballistic Information Network (NIBIN) linked firearms he possessed to two shootings in the Fort Worth area.

Mr. Rendon now faces up to 10 years in federal prison.

The Bureau of Alcohol, Tobacco, Firearms, & Explosives’ Dallas Field Division - Fort Worth Resident Agency conducted the investigation with assistance from the Fort Worth and Haltom City Police Departments and the Department of Public Safety. Assistant U.S. Attorney Justin Beck is prosecuting the case.

This case is part of “Operation Texas Kill Switch,” a statewide initiative taking aim at machinegun conversion devices, also known as “switches,” which transform commercially available semi-automatic firearms into fully-automatic weapons capable of firing faster than military-grade machine guns. Spearheaded by U.S. Attorneys Leigha Simonton, Alamdar Hamdani, Damien Diggs and Jaime Esparza, Operation Texas Kill Switch relies on partnerships with state and local law enforcement as well as rewards offered by Crime Stoppers.

A Dallas pharmacy owner who routinely billed insurance companies for headache sprays, pain creams, and scar creams never dispersed to patients was sentenced Tuesday afternoon to 10 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.

Ivor Jallah, 37, was indicted in November 2020 and pleaded guilty in June 2024 to conspiracy to commit healthcare fraud. He was sentenced Monday by U.S. District Judge Sam A. Lindsay to 120 months in federal prison and ordered to pay $41,494,313.97 in restitution.  Mr. Ivor’s coconspirator, Shannon Turley, 46, pleaded guilty in November 2023 to conspiracy to commit healthcare fraud and is set to be sentenced in November.

“By billing for prescription medication patients never needed nor received, these defendants brazenly lined their pockets at the expense of each and every client who paid into health insurance,” said U.S. Attorney Leigha Simonton. “Healthcare is already a significant expense for many Americans. We cannot and will not allow pharmacy operators to abuse the system in this way.”

“Healthcare fraud schemes are more complex, more resource-consuming, and more costly to the American taxpayer than ever. For this defendant, as one avenue to personal enrichment ran its course, he simply began operating a new pharmacy or engaging in a new method to circumvent existing system safeguards,” explained Dallas FBI Acting Special Agent in Charge P. J. O’Brien. “From fraudulent credentials to fabricated invoices, the conspiracy was designed to thwart detection. The FBI will continue to work with our partners from the Northern District of Texas, Texas Department of Insurance, and others to bring justice to criminals who attempt to undermine our healthcare system.”

According to plea papers, Mr. Jallah and Ms. Turley – who together operated at least nine Texas pharmacies, including Preferred RX, EZ Pharmacy, Avenue H Pharmacy, and Wallis Pharmacy – paid individuals they referred to as “marketers” for insured patients’ personally identifiable information. Some patients were aware of the scheme and required the marketers pay a fee for their information; others were oblivious to the fraud.

Mr. Jallah and Ms. Turley caused employees to input the patient information onto pre-populated prescription pads. In some cases, they paid physicians to fraudulently stamp prescription forms when they had not seen patients, while in other cases, they used physicians’ stamps without their knowledge.

Initially, the pharmacies shipped out a fraction of the medications they billed to insurance. At some point, however, Mr. Jallah decided to stop shipping out any medication they billed to insurance.

When insurance companies conducted audits to determine whether the prescription claims were legitimate, Mr. Jallah and Ms. Turley fabricated drug purchase invoices to support the claims they submitted to insurance.

Mr. Jallah also directed pharmacy employees to create faux prescription delivery logs and directed the so-called “marketers” to ask patients to sign the logs regardless of whether they received prescriptions. In cases where the marketers could not obtain patient signatures, Mr. Jallah directed pharmacy employees to forge them.

Over the course of the scheme, Mr. Jallah and Ms. Turley submitted at least $46 million in bogus claims to insurers, $41 million of which were reimbursed.

Eight defendants have previously pled guilty to charges associated with the pharmacy fraud and been sentenced to a combined 290 months in prison.  Two other defendants await sentencing. 

The Federal Bureau of Investigation’s Dallas Field Office and the Texas Department of Insurance conducted the investigation. Assistant U.S. Attorneys Marty Basu, Joshua Detzky, and Lindsey Pryor prosecuted the case with the assistance of Assistant U.S. Attorneys Katherine Miller and Lisa Dunn. Assistant U.S. Attorney Dimitri Rocha handled the forfeiture. 

A 25-year-old man who hid photos of himself raping preschool-aged children inside what appeared to be a calculator app on his phone has been sentenced to 60 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton. 

Humberto Barreto, Jr., was indicted in January and pleaded guilty in June to two counts of production of child pornography.  He was sentenced last Thursday by U.S. District Judge James Wesley Hendrix to 30 years per count to run consecutively for a total of 60 years and ordered to register as a sex offender. 

“This lengthy sentence is proof that this defendant’s deviant behavior of victimizing and sexually exploiting children will not stand, “said Travis Pickard, Special Agent in Charge HSI Dallas. “Due to the collaboration between HSI and our law enforcement partners of the Howard County Sheriff's Office, Mr. Barreto will spend the next 60 years of his life behind prison walls, where he can no longer prey upon our society’s most vulnerable population.”

According to court documents, the investigation began when Mr. Barreto’s ex-girlfriend alerted police that she saw internet searches for child pornography on his phone. She told officers that when she confronted him, Mr. Barreto admitted to using cryptocurrency to purchase child sexual abuse imagery and said “age did not matter” to him. 

Forensic examiners searched the phone and found hundreds of photos and at least 30 videos of adult men sexually abusing children, including toddlers. They also found a storage application disguised as a calculator, where Mr. Barreto hid videos of him sexually assaulting 4- and 5- year old girls. 

“I mean, I can’t deny it,” he said, when confronted by officers. “I did what I did.” 

“My baby girl, she seems to have been more withdrawn and sensitive… she’s had nightmares,” the mother of a victim said in a statement read into the record at sentencing. “Those acts he did are of a monster, and I believe he is one in the truest form.” 

Homeland Security Investigation’s Dallas Field Office and the Howard County Sheriff’s Office conducted the investigation with the assistance of the Big Spring Police Department. Assistant U.S. Attorney Matt Tusing prosecuted the case.

A Fort Worth couple linked to at least two overdose deaths was sentenced today to a combined 51 years in federal prison for trafficking fentanyl, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.

Edward Taylor, 42, Tierrah “TT” Andrews, 29, were charged in March. Both pleaded guilty in May to conspiracy to distribute fentanyl. On Friday, Mr. Taylor was sentenced by U.S. District Judge Mark Pittman to 27 years in federal prison; Ms. Andrews was sentenced to just over 24 years in federal prison.

“These drug traffickers callously disregarded the risks of the drugs they were selling, and as a result, two people died,” said U.S. Attorney Leigha Simonton. “Traffickers know that fentanyl does not discriminate. It takes the lives of first-time users and long-term addicts alike. These round blue pills are fueling a crisis that is ripping apart families across America. The Justice Department—including this U.S. Attorney’s Office—will not relent until we see each and every fentanyl trafficker held accountable for the lives they destroyed.”

“Although today’s sentencings will provide little solace to the families of those lost to the fentanyl scourge, it is a promising triumph in law enforcement's fight against its vile spread. As we witness in this case, while investigating Federal firearms violations, ATF will occasionally uncover other illicit acts, such as the sale of illegal narcotics. Unbeknownst to the bad guys, law enforcement communicates better than they do. Making these crimes sentenced here today even more monstrous is the fact that Ms. Andrews was carrying a firearm to protect her venture while dealing her filth.  Together with our local partners and the DEA, we are committed to putting the bad actors poisoning our streets with fentanyl and carrying firearms in prison through any means necessary,” stated ATF Dallas Field Division Special Agent in Charge Jeffrey C. Boshek II.   

According to court documents, Mr. Taylor and Ms. Andrews admitted to trafficking cocaine and fentanyl pills out of a motel room and an apartment in Fort Worth’s Las Vegas Trail neighborhood.

On Nov. 2, 2023, a 45-year-old man identified by the initials T.M. took a rideshare to the motel to purchase drugs from Mr. Taylor. Surveillance video showed the man briefly enter and exit Mr. Taylor’s room. Hours later, the victim’s mother found his body in his bedroom next to a crushed M-30 pill containing fentanyl.  Four additional M-30 pills were found in a nicotine box inside the victim’s room.

Less than three months later, on Jan. 26, 2024, a 21-year-old man identified by the initials K.S. texted Ms. Andrews requesting “rocks n blues” (slag for crack cocaine and fentanyl pills). Cell phone data showed he took a rideshare to a gas station near her apartment, walked to her place, and paid her $77 via CashApp. Later that day, his sister found his body, where blue M-30 pills containing fentanyl, white powder, and a glass pipe were later found.

That same month, a source of information reported to police he had purchased crack cocaine and fentanyl pills from a couple trafficking out of Fort Worth. He provided Ms. Andrews’ phone number and Mr. Taylor’s CashApp account. Another source of information confirmed that he too had purchased crack cocaine and “percs” (another slang term for pills) from Mr. Taylor and Ms. Andrews for several months. He reported that the couple generally had a “k-pack” of 1,000 blue M-30 pills in plain view.

On Jan. 27,  law enforcement executed a search warrant at Ms. Andrews’ apartment,  where they found 270 blue M-30 pills, 2.8 grams of cocaine, 6.6 grams of methamphetamine, a drug ledger (also known as a “pay owe” book), and 50 rounds of 9mm ammunition. On Ms. Andrews’ person, agents found a privately manufactured firearm, or “ghost gun,” loaded with 13 rounds of ammunition. She explained to officers that she dealt drugs provided by Mr. Taylor and carried the pistol ”so no one does anything to me.”

On Feb. 29, 2024, an ATF undercover agent and a confidential informant purchased approximately 6.28 grams of blue M-30 pills containing fentanyl from Ms. Andrews at her apartment for $275. They observed Mr. Taylor asking Ms. Andrews about the transaction while she bagged up the blue M-30 pills inside the apartment. The transaction was completed outside, in the undercover agent’s vehicle. The defendants were arrested a week later in possession of additional blue M-30 pills and firearms, despite both being convicted felons prohibited from possessing firearms.

When confronted with photos of the victims, Mr. Taylor admitted to selling to T.M. and Ms. Andrews admitted to selling to K.S. Autopsies later confirmed both men suffered fatal drug overdoses.

The Bureau of Alcohol, Tobacco, Firearms, & Explosives Dallas Field Division – Fort Worth Resident Agency conducted the investigation as part of a Fort Worth Violent Crime Initiative, with the assistance of the Fort Worth Police Department and the Parker County Sheriff’s Office. Assistant U.S. Attorney Levi Thomas is prosecuting the case. 

An Anson ISD employee who allegedly used AI to superimpose the faces of students onto the faces of adult subjects in pornographic videos has been federally charged, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.

Daril Martin Gonzales, 55, was indicted last Wednesday on one count of possession and attempted possession of child pornography and one count of possession and attempted possession of obscene visual representation of a child. He was arraigned on Thursday before Magistrate Judge John R. Parker, who on Tuesday ordered him detained pending trial.

At Tuesday’s detention hearing, prosecutors noted that Mr. Gonzales, who works as a janitor for Anson ISD, moonlighted as a school sports and cheerleading photographer, taking pictures of middle and high school students for free. Without the children’s consent, he allegedly used artificial intelligence (AI) to superimpose the faces of pre-pubescent students onto the faces of adult subjects in sexually explicit videos or to attach AI-generated nude bodies to the faces of the girls.

According a police report admitted into evidence at the detention hearing, Mr. Gonzales allegedly described his crimes as a “power trip” and admitted to viewing child pornography for up to six hours per day for the past 20 to 25 years.

“Knowing he took those [photographs] and what he does with them, it really makes me sick to my stomach,” a victim said in late August, after being informed about the AI images. “I feel gross, I know it’s not me, but it makes me feel gross and violated and disrespected.”

“I felt disgusted, embarrassed, and scared. I was worried that photos of me could be posted or sold somewhere,” said another. “I was embarrassed cause I didn’t want people to think of me in this way when I hadn’t done anything.”

“I know I can’t do anything about what he did,” said a third. “I don’t think I did anything wrong. He’s in the wrong.”

An indictment is merely an allegation of criminal conduct, not evidence. Like all defendants, Mr. Gonzales is presumed innocent until proven guilty in a court of law.

If convicted, he faces up to 20 years in federal prison followed by a possible lifetime of supervised release.

Homeland Security Investigations’ Dallas Field Division – Abilene Resident Agency, Abilene Police Department, the Texas Rangers, and the Anson Police Department conducted the investigation. Assistant U.S. Attorney Whitney Ohlhausen is prosecuting the case.

A theology professor who allegedly stored pornographic images of children on his work computer has been federally charged, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.

Charles Kilby Bellinger, 62, a professor of theology and librarian at the Brite Divinity School at Texas Christian University, was charged via criminal complaint with possession of child pornography and arrested on Oct. 4. 

The federal investigation began after TCU’s IT staff reported they had detected pornographic images with concerning file names, including “infant” and “toddler,” on Dr. Bellinger’s work computer.

On a hard drive and an SD card removed from Dr. Bellinger’s office, investigators found multiple sexually explicit images of pre-pubescent minors.

At a detention hearing on Thursday, an agent testified that law enforcement also seized multiple encrypted devices from a locked safe in his office. Forensic investigation of those devices is ongoing.

A criminal complaint is merely an allegation of criminal conduct, not evidence. Like all defendants, Dr. Bellinger is presumed innocent until proven guilty in a court of law.

If convicted, he faces up to 20 years in federal prison.

The U.S. Secret Service and the Fort Worth Police Department’s Internet Crimes Against Children Unit conducted the investigation with the Texas Christian University Campus Police. Assistant U.S. Attorney Aisha Saleem is prosecuting the case.

Twelve alleged fentanyl traffickers were arrested in a large-scale drug bust in Abilene, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.

The takedown – the second in an operation that previously resulted in the prosecution of 17 drug traffickers arrested during a large-scale bust in late February  – involved agents and officers from the Federal Bureau of Investigation’s Dallas Field Office -  Abilene Resident Office, the Taylor County Sheriff’s Office, the Abilene Police Department, and the Callahan County Sheriff’s Office. 

Those charged in two separate indictments unsealed today include:

• Christopher Thompson, charged with possession with intent to distribute fentanyl
• Marquee Anthony Aboso, aka OC, charged with conspiracy to distribute and possess with intent to distribute fentanyl and possession with intent to distribute fentanyl
• Kurtney Bernard Jones, aka KP, charged with conspiracy to distribute fentanyl and two counts of possession with intent to distribute fentanyl
• Steven Lattimore, aka PNut, charged with conspiracy to distribute and possess with intent to distribute fentanyl and possession with intent to distribute fentanyl
• Mckenzee Marie Lane, charged with conspiracy to distribute and possess with intent to distribute fentanyl and possession with intent to distribute fentanyl
• Maxine Gonzales, charged with conspiracy to distribute and possess with intent to distribute fentanyl
• Tylik Ojur Johnson, charged with conspiracy to distribute and possess with intent to distribute fentanyl and possession with intent to distribute fentanyl
• Jeremiah Greene, aka Lil Mexico, charged with conspiracy to distribute and possess with intent to distribute fentanyl and possession with intent to distribute fentanyl
• Paul Eli Snyder, charged with conspiracy to distribute and possess with intent to distribute fentanyl and possession with intent to distribute fentanyl
• Robert Lee Mason, charged with conspiracy to distribute and possess with intent to distribute fentanyl and possession with intent to distribute fentanyl
• Glen Edward Lee, Jr., charged with conspiracy to distribute and possess with intent to distribute fentanyl and possession with intent to distribute fentanyl
• Christopher Anthony Glaze, charged with conspiracy to distribute and possess with intent to distribute fentanyl and possession with intent to distribute fentanyl

Over the course of the operation into these individuals, agents seized more than 14,856 fentanyl pills, 45.4 grams of heroin, 2.56 grams of meth, and 15.56 grams of crack cocaine, as well as multiple firearms.

An indictment is merely an allegation of criminal conduct, not evidence. All defendants are presumed innocent until proven guilty in a court of law.

If convicted, some defendants named in these indictments face up to 20 years in federal prison.

Sixteen of the 17 defendants arrested in February’s takedown have already been convicted. Fourteen have already been sentenced to a combined 187 years in federal prison; two pleaded guilty and await sentencing, and one is awaiting trial. The lead defendant, Diana Perez, deemed responsible for more than 109,221 kilograms of drugs, was sentenced Thursday to more than 24 years in federal prison.  

The Federal Bureau of Investigation’s Dallas Field Office - Abilene Resident Agency, the Drug Enforcement Administration's Dallas Field Division - Fort Worth Resident Agency, and the Taylor County Sheriff’s Office conducted the investigation with the assistance of Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms, & Explosives' Dallas Field Division, and the IRS – Criminal Investigations. The cases are being prosecuted by the West Texas Branch of the U.S. Attorney’s Office for the Northern District of Texas.

This prosecution stems from an Organized Crime Drug Enforcement Task Forces (OCDETF) instigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transitional criminal organizations that threaten the Untied States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. Additional information about the OCDETF program can be found at https://www.justice.gov/OCDETF. 

A 43-year-old man who narrated the sexual assault of a 14-year-old on video has been sentenced to 20 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.

Vincent Jerome Thompson and his coconspirator, Lukumond Adebola Olatunji, 46, were indicted in January 2022. Mr. Thompson pleaded guilty in June 2024 to production of child pornography and aiding and abetting; Mr. Olatunji pleaded guilty to kidnapping a minor two months later. Mr. Thompson was sentenced Wednesday by U.S. District Judge Ed Kinkeade to 240 months in federal prison, followed by lifetime term of supervised release, and ordered to register as a sex offender. Mr. Olatunji is slated to be sentenced in December.

“No child deserves to suffer the degradation this child endured,” said U.S. Attorney Leigha Simonton. “The callousness of the defendant’s commentary on the video he shot, even as the victim plead with the perpetrators to be let go, shocks the conscience. The U.S. Attorney’s Office is proud to stand up for this little girl – and every child abused in this manner.”

“This defendant and his cohort coerced and sexually abused a child without regard for the lifelong trauma their actions would cause their victim, “said Travis Pickard, Special Agent in Charge of HSI Dallas. “Protecting minors from child predators remains a high priority for HSI. We will never relent in our efforts to apprehend those who seek to abuse our most vulnerable citizens.”

According to plea papers, the men admit that on Oct. 23, 2021, they approached a 14-year-old girl and offered her a ride home. They then drove to an alleyway where Mr. Olatunji sexually assaulted her in the backseat of the car. Mr. Thompson recorded the assault on his cell phone, providing commentary as the assault progressed.

On the video, the child can be heard saying, “I don’t want to do it no more,” and “can we go?”

The pair then took the child to a nearby motel, where both men continued to sexually assault her. After approximately five hours inside the motel room, the child ran out of the room carrying her backpack and shoes. Police responded and searched the motel room, where they found condom wrappers and drug paraphernalia.

In interviews with law enforcement, both men admitted to engaging in sexual intercourse with the child. Mr. Olatunji admitted that the child repeatedly told them that she did not want to have sex anymore.

At Wednesday’s sentencing hearing, the prosecutor noted that the victim was intellectually disabled.

Homeland Security Investigation’s Dallas Field Office and the Dallas Police Department conducted the investigation. Assistant U.S. Attorneys Jenna Rudoff and Joe Magliolo (fmr.) are prosecuting the case

A 27-year-old man who paid two young boys $200 to produce a sexually explicit video pleaded guilty today to federal child pornography charges, announced U.S. Attorney for the Northern District of Texas Leigha Simonton. 

Mark Penfield Eichorn, a former preschool teacher’s assistant, was indicted in June. He pleaded guilty Tuesday to production of child pornography before U.S. Magistrate Judge John R. Parker. 

According to plea papers, Mr. Eichorn admitted that he contacted two young boys, ages 12 and 13, via Snapchat and asked them to produce a sexually explicit video of themselves. 

The children, who lived in Georgia, later confided to law enforcement that they produced a 90-second video as instructed and sent it to Mr. Eichorn, who paid them $200 via Venmo. Financial and phone records corroborated their accounts.  

In an interview with law enforcement, Mr. Eichorn admitted that he knew the children were roughly 13 years old when he asked them to produce the video, and that he paid them $200 for it. 

At a detention hearing shortly after he was indicted, federal law enforcement testified that when asked about the children in Georgia, Mr. Eichorn responded, “just those two?”

Mr. Eichorn now faces 30 years in federal prison followed by a lifetime of supervised release. 

Homeland Security Investigations’ Dallas Field Division and the Abilene Police Department conducted the investigation with the assistance of the Forsyth County Sheriff’s Office in Georgia. Assistant U.S. Attorney Whitney Ohlhausen is prosecuting the case. 

United States Attorney Leigha Simonton issued a public safety alert today advising the public to be vigilant to hurricane relief fraud in the wake of Hurricane Helene.

“North Texans are some of the most generous people I know,” said U.S. Attorney Leigha Simonton, the Northern District of Texas’ chief federal law enforcement officer. “We’ve all been impacted by the devastating images of Helene’s aftermath and are looking for ways to help. The best way to ensure your donations make a difference is to route them through a legitimate charity. Please, be vigilant for scams. Unfortunately, some fraudsters will stop at nothing to make a quick buck – even if it means exploiting a natural disaster and preventing funds from reaching the actual victims who are in need.”  

On Sept. 26, Hurricane Helene made landfall in Florida’s Big Bend Region and quickly caused major devastation there and across states including Georgia, South Carolina, North Carolina, Tennessee, and others. 

As we have seen in the wake of previous national disasters, fraudsters will target victims of the storm along with citizens across the country who want to do what they can to assist individuals affected by the storm. 

Unfortunately, criminals exploit disasters for their own gain by sending fraudulent communications through email or social media and by creating deceiving websites designed to solicit contributions.

The public should exercise diligence before giving contributions to anyone soliciting donations or individuals offering to assist those affected by Hurricane Helene. Solicitations can originate from phone calls, texts, social media, e-mail, door-to-door collections, flyers, mailings, and other similar methods. Before making a donation to benefit victims of Hurricane Helene, individuals should adhere to certain guidelines, including:

• Make contributions directly to known organizations rather than relying on others to make the donation on your behalf.
• Do not be pressured into making contributions as reputable charities do not use such tactics.
• Do not respond to any unsolicited communications (e.g., e-mails and texts), and never click links contained within those messages because they may be targeting your personal information, to include bank and credit card account information, and other identifiers such as dates of birth and social security numbers.
• Rather than clicking on a purported link to a charity, verify its legitimacy by utilizing various Internet-based resources that may assist in confirming whether the organization is a valid charity.
• Beware of organizations with copy-cat names similar to but not exactly the same as those of reputable charities.
• Avoid cash donations if possible. Pay by credit card or write a check directly to the charity. Do not make checks payable to individuals.
• Know that legitimate charities do not normally solicit donations via money transfer services, and their website will normally end in .org rather than .com.
• Be cautious of e-mails that claim to show pictures of the disaster areas in attached files because the files may contain viruses. Only open attachments from known senders.

The U.S. Department of Justice established the National Center for Disaster Fraud (NCDF) in the wake of Hurricane Katrina to deter, investigate, and prosecute fraud in the wake of disasters. More than 50 federal, state, and local agencies participate in the NCDF, which reminds the public to be aware of and report any instances of alleged fraudulent activity related to relief operations and funding for victims. Complaints of fraud may be reported online at www.justice.gov/DisasterComplaintForm. Complaints may also be reported to the NCDF at (866) 720-5721, a hotline that is staffed 24 hours a day, 7 days a week.

Nine drug traffickers allegedly operating out of Brownfield, Texas and surrounding areas have been federally charged, announced U.S. Attorney for the Northern District of Texas Leigha Simonton. 

The defendants were arrested Thursday in a takedown that involved officers and agents from the Brownfield Police Department, Drug Enforcement Administration’s Dallas Field Office – Lubbock Resident Agency, the Lubbock County Sheriff’s Office, the Lubbock Police Department, the Texas Department of Public Safety, and Homeland Security Investigations. They made their initial appearances Friday morning before U.S. Magistrate Judge Amanda ‘Amy’ R. Burch.  

“The success of this investigation highlights DEA’s outstanding partnerships with federal, state, and local agencies in the Caprock area,” said Special Agent in Charge, Eduardo A. Chavez. “DEA Lubbock and its counterparts will continue to bring violent drug traffickers to justice in small rural communities and large metropolitan areas alike.”

“The Brownfield Police Department takes the health and safety of our community seriously. We will continue to do what is necessary to investigate, arrest, and prosecute those who distribute illegal narcotics on our streets and in our neighborhoods,” said Brownfield Police Chief Chris Kotzur.

Those charged in six separate indictments include: 

• Kirkland Ryan Longoria, charged with conspiracy to distribute cocaine and distribution of cocaine
• Sandra Kay Cavazos, charged with conspiracy to distribute cocaine and distribution of cocaine
• Arthur Lee Willingham, charged with conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, and felon in possession of a firearm
• Steven Blake Johnston, charged with conspiracy to distribute methamphetamine, distribution of methamphetamine, and possession with intent to distribute methamphetamine
• Steven Rene Rodriguez, charged with conspiracy to distribute methamphetamine and distribution of methamphetamine
• Lorraine Riojas Davila, charged with conspiracy to distribute methamphetamine and distribution of methamphetamine
• Dewayne Deshae Willis, charged with conspiracy to distribute methamphetamine and possession with intent to distribute cocaine
• Larry Joe Franco, Jr., charged with conspiracy to distribute methamphetamine and distribution of methamphetamine
• Demetrick Ward, charged with distribution of cocaine 

An indictment is merely an allegation of criminal conduct, not evidence. All defendants are presumed innocent until proven guilty in a court of law. 

If convicted, some face potential life sentences in federal prison.

Brownfield Police Department, Drug Enforcement Administration’s Dallas Field Office – Lubbock Resident Agency, the Lubbock County Sheriff’s Office, the Lubbock Police Department, the Texas Department of Public Safety, and Homeland Security Investigations conducted the investigation. Assistant U.S. Attorneys Stephen Rancourt and Sean Long are prosecuting the cases. 

The Justice Department today unsealed an indictment charging Russian national Aleksandr Viktorovich Ryzhenkov (Александр Викторович Рыженков) with using the BitPaymer ransomware variant to attack numerous victims in Texas and throughout the United States and hold their sensitive data for ransom.

According to the indictment obtained in the Northern District of Texas, beginning in at least June 2017, Ryzhenkov allegedly gained unauthorized access to the information stored on victims’ computer networks. Ryzhenkov and his conspirators then allegedly deployed the strain of ransomware known as BitPaymer and used it to encrypt the files of the victim companies, rendering them inaccessible. An electronic note left on the victims’ systems contained a ransom demand and instructions on how to contact the attackers to begin ransom negotiations. Ryzhenkov and his conspirators allegedly demanded that victims pay a ransom to obtain a decryption key and prevent their sensitive information from being made public online.

The indictment further alleges that Ryzhenkov and others used a variety of methods to intrude into computer systems, including phishing campaigns, malware, and taking advantage of vulnerabilities in computer hardware and software. Ryzhenkov and coconspirators used this access to demand millions of dollars in ransom. Ryzhenkov is believed to be in Russia. View the FBI’s wanted poster for him here.

In coordination with the indictment’s unsealing, the Office of Foreign Assets Control of the U.S. Department of the Treasury today announced that Ryzhenkov was added to its list of specially designated nationals. The designation blocks property and interests in any property the designee may have in the United States and prohibits U.S. financial institutions from engaging in certain transactions and activities with the designated individual. To learn more, view the Treasury announcement here.

“The Justice Department is using all the tools at its disposal to attack the ransomware threat from every angle,” said Deputy Attorney General Lisa Monaco. “Today’s charges against Ryzhenkov detail how he and his conspirators stole the sensitive data of innocent Americans and then demanded ransom. With law enforcement partners here and around the world, we will continue to put victims first and show these criminals that, in the end, they will be the ones paying for their crimes.”

“Ransomware attacks – particularly those deployed by bad actors with ties to Russia – can paralyze a company in the time it takes to open a laptop. Whether or not the ransom is paid, recovering from a ransomware attack is generally costly and time-consuming,” said U.S. Attorney Leigha Simonton for the Northern District of Texas. “The U.S. Attorney’s Office for the Northern District of Texas is committed to pursuing cybercriminals who hold data hostage, no matter where in the world they may be hiding.”

“Aleksandr Ryzhenkov extorted victim businesses throughout the United States by encrypting their confidential information and holding it for ransom,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Addressing the threat from ransomware groups is one of the Criminal Division’s highest priorities. The coordinated actions announced today demonstrate, yet again, that the Justice Department is committed to working with its partners to take an all-tools approach to protecting victims and holding cybercriminals accountable.”

“The FBI together with partners continues to leverage all resources to impose cost on criminals engaging in ransomware attacks,” said FBI Deputy Director Paul Abbate. “Today’s indictment delivers a clear message to those who engage in cyber-criminal activity – you will face severe consequences for your illicit activities and will be held accountable under the law.”

The FBI Dallas Field Office is investigating the case.

Trial Attorney Debra L. Ireland of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Vincent J. Mazzurco for the Northern District of Texas are prosecuting the case.

Victims of ransomware attacks are encouraged to contact their local FBI field office. For additional information on ransomware, please visit StopRansomware.gov.

An indictment is merely an allegation. Under United States law, all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. 

The Justice Department today unsealed an indictment charging Russian national Aleksandr Viktorovich Ryzhenkov (Александр Викторович Рыженков) with using the BitPaymer ransomware variant to attack numerous victims in Texas and throughout the United States and hold their sensitive data for ransom.

According to the indictment, beginning in at least June 2017, Ryzhenkov allegedly gained unauthorized access to the information stored on victims’ computer networks. Ryzhenkov and his conspirators then allegedly deployed the strain of ransomware known as BitPaymer and used it to encrypt the files of the victim companies, rendering them inaccessible. An electronic note left on the victims’ systems contained a ransom demand and instructions on how to contact the attackers to begin ransom negotiations. Ryzhenkov and his conspirators allegedly demanded that victims pay a ransom to obtain a decryption key and prevent their sensitive information from being made public online.

The indictment further alleges that Ryzhenkov and others used a variety of methods to intrude into computer systems, including phishing campaigns, malware, and taking advantage of vulnerabilities in computer hardware and software. Ryzhenkov and coconspirators used this access to demand millions of dollars in ransom. Ryzhenkov is believed to be in Russia. View the FBI’s wanted poster for him here.

In coordination with the indictment’s unsealing, the Treasury Department's Office of Foreign Assets Control today announced that Ryzhenkov was added to its list of specially designated nationals. The designation blocks property and interests in any property the designee may have in the United States and prohibits U.S. financial institutions from engaging in certain transactions and activities with the designated individual. To learn more, view the Treasury announcement here.

“The Justice Department is using all the tools at its disposal to attack the ransomware threat from every angle,” said Deputy Attorney General Lisa Monaco. “Today’s charges against Ryzhenkov detail how he and his conspirators stole the sensitive data of innocent Americans and then demanded ransom. With law enforcement partners here and around the world, we will continue to put victims first and show these criminals that, in the end, they will be the ones paying for their crimes.”

“The FBI, together with partners, continues to leverage all resources to impose cost on criminals engaging in ransomware attacks,” said FBI Deputy Director Paul Abbate. “Today’s indictment delivers a clear message to those who engage in cyber-criminal activity – you will face severe consequences for your illicit activities and will be held accountable under the law.”

“Aleksandr Ryzhenkov extorted victim businesses throughout the United States by encrypting their confidential information and holding it for ransom,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Addressing the threat from ransomware groups is one of the Criminal Division’s highest priorities. The coordinated actions announced today demonstrate, yet again, that the Justice Department is committed to working with its partners to take an all-tools approach to protecting victims and holding cybercriminals accountable.”

“Ransomware attacks – particularly those deployed by bad actors with ties to Russia – can paralyze a company in the time it takes to open a laptop. Whether or not the ransom is paid, recovering from a ransomware attack is generally costly and time-consuming,” said U.S. Attorney Leigha Simonton for the Northern District of Texas. “The U.S. Attorney’s Office for the Northern District of Texas is committed to pursuing cybercriminals who hold data hostage, no matter where in the world they may be hiding.”

The FBI Dallas Field Office is investigating the case.

Trial Attorney Debra L. Ireland of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Vincent J. Mazzurco for the Northern District of Texas are prosecuting the case.

Victims of ransomware attacks are encouraged to contact their local FBI field office. For additional information on ransomware, please visit StopRansomware.gov.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Two pain management doctors who pantomimed injections on patients were sentenced today to six and a half years apiece for healthcare fraud, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.

Drs. Desi Barroga, 51, and Deno Barroga, 51, were indicted in November 2023 and pleaded guilty in May 2024 to one count each of conspiracy to commit healthcare fraud. They were sentenced Thursday by U.S. District Judge Brantley Starr, who ordered them jointly and severally liable for $9,016,883.10 in restitution. Under the terms of their plea agreement, both men were also required to forfeit their medical licenses.

“These doctors exploited drug users’ vulnerabilities, requiring them to submit to monthly visits in exchange for controlled substance prescriptions, then billing their insurance providers for services the patients did not need nor receive. In a bizarre attempt to cover up their crimes, the defendants feigned giving injections without actually piercing the patients’ skin,” said U.S. Attorney Leigha Simonton. “Not only did they defraud their patients’ insurers, they facilitated their patients’ addictions. Their actions are antithetical to the practice of medicine, and the U.S. Attorney’s Office is proud to hold them accountable for their crimes.”

“Deno and Desi Barroga conspired to fraudulently bill private insurance companies, which included Employee Retirement Income Security Act of 1974 covered plans, tens of millions of dollars for services not rendered. Among other things, both doctors falsely represented to insurance companies that patients received over eighty injections during the office visits, when, in fact, the patients received few or no injections at all. This sentencing reflects the Office of Inspector General’s commitment to working with the U.S. Department of Labor’s (DOL) Employee Benefits Security Administration and our law enforcement partners to investigate and bring to justice those who engage in fraud against employee benefit programs,” said Casey J. Howard, Special Agent in Charge, Central Region, U.S. Department of Labor - Office of Inspector General.

According to court documents, the twin brothers admitted that they conspired to defraud Blue Cross Blue Shield, Cigna, and United Healthcare by submitting claims for corticosteroid injections that were never administered.

As part of the conspiracy, the Barrogas required patients to submit to monthly office visits. This allowed patients to continue receiving highly addictive Schedule II controlled substances – including hydrocodone, oxycodone, and morphine  – while allowing the defendants to bill patients’ insurance companies for expensive services they never provided.

The Barrogas reported to insurance that they performed as many as 80 corticosteroid injections per patient per visit. In reality, the majority of these injections were never administered. In many instances, the doctor simply placed a needle on the patient’s body without actually piercing the skin to mimic giving an injection.

They defendants created fake medical records, which were often cut and pasted, or cloned, from patient to patient with little to no variation. They also instructed patients to include false statements pertaining to the injections and other treatments in the record.

In plea papers, the brothers admitted that they billed insurers at least $45 million and were paid at least $9 million as part of the scheme.

The U.S. Department of Labor’s Office of Inspector General, the U.S Department of Labor’s Employee Benefits Security Administration, U.S Office of Personnel Management’s Office of the Inspector General, the Drug Enforcement Administration’s Dallas Field Division Diversion Group, and the Texas Department of Insurance – Fraud Unit – Austin and Fort Worth Field Offices conducted the investigation. Assistant U.S. Attorney Renee Hunter is prosecuting the case. Assistant U.S. Attorney Dimitri Rocha assisted with forfeiture.

Two sheriff’s deputies who allegedly tipped off a drug trafficker about an impending DEA raid are being federally prosecuted, announced U.S. Attorney for the Northern District of Texas Leigha Simonton. 

Bernalillo County Sheriff’s Office Deputy Kyle Linker, 33, was charged via criminal information and pleaded guilty Tuesday to one count of obstruction of justice. 

His colleague, Paul Jessen, Jr., 34, was indicted Tuesday on one count of conspiracy to obstruct justice, two counts of obstruction of justice, and two counts of making false statements. He has not yet entered a plea.

“Local, state, and federal law enforcement must work in concert to keep our communities safe. When we find a uniformed officer has undermined another agency’s investigation, we take swift action,” said U.S. Attorney Leigha Simonton. “Law enforcement works best when we work as a team.”

"It's deeply troubling when sworn Law Enforcement officers disclose information about upcoming operations to criminals," said Special Agent in Charge Raul Bujanda of the FBI Albuquerque Field Office. "It endangers the officers in the operation and jeopardizes the evidence they are seeking. The FBI will continue to provide all available resources towards identifying, investigating, and presenting for prosecution any individuals who betray their badges and their oaths of office."

“Every day, the men and women of the DEA work with local, state, and federal law enforcement partners to bring drug dealers to justice,” said Towanda Thorne-James, Special Agent in Charge of the DEA’s El Paso Field Division. “Mr. Linker chose to partner with the drug dealers instead, and now he too will face the consequences.”

According to Mr. Linker’s plea papers, the two deputies met the drug trafficker during the execution of a state search warrant in Los Ranchos, New Mexico, in July 2021. After finding methamphetamine inside his residence, they recruited him as a confidential informant. 

In November 2021, a DEA agent notified Mr. Linker that the agency planned to conduct an operation near the drug trafficker’s home. Fearing the operation might target the trafficker, Mr. Linker reached out to warn him about the impending operation. The drug trafficker canceled his upcoming transaction, and the DEA was unable to gather evidence against him. 

Upon examining the drug trafficker’s phone records, DEA agents began to suspect that he had been tipped off by Mr. Linker and decided to conduct another operation without notifying Mr. Linker first. 

In December 2021, the DEA executed a search warrant at the drug trafficker’s residence and located more than 470 grams of methamphetamine and a firearm. 

During the ensuing interview, the drug trafficker admitted to the agents that he had been previously tipped off by Mr. Linker. The DEA devised a plan to confirm the trafficker’s account. 

Shortly thereafter, an agent contacted Mr. Linker to inform him the DEA was planning to use an informant to purchase methamphetamine from the drug trafficker. Although the agent specifically instructed Mr. Linker not to contact the trafficker, Mr. Linker messaged the trafficker to “call me ASAP.” 

Unbeknownst to Mr. Linker, the drug trafficker was still in the presence of law enforcement. 

The drug trafficker called Mr. Linker, who told him he was “on DEA’s radar” and instructed him to have someone else deliver drugs to the DEA informant.  

Shortly after receiving word from the DEA that the operation would continue as planned, Mr. Linker texted Mr. Jessen to complain about the DEA’s plan. 

“Tell [trafficker] not to sell to anyone. And go to a hotel or stay with someone else for a bit,” Mr. Jessen allegedly responded. 

“What I should do is have you call [trafficker] that way when they ultimately say I tipped [trafficker] off I can show them my call logs and be like I haven’t talked to him since this morning,“ Mr. Linker texted back. 

“I’ll [expletive] do it,” Mr. Jessen allegedly responded. 

“Perfect,” Mr. Linker said. “Plausible deniability for me.” 

The pair then allegedly called the drug trafficker from Mr. Jessen’s phone. 

Mr. Linker told the drug trafficker the DEA would move forward with the operation and advised him to “shut everything down.” He then gave the trafficker excuses he could use to explain why he’d called off the transaction. 

The drug trafficker was charged in a separate federal case. In June 2024, he pleaded guilty to possession with intent to distribute methamphetamine and is currently awaiting sentencing. 

Mr. Linker now faces up to 20 years in federal prison. His sentencing date has not yet been set.

Mr. Jessen – who is presumed innocent until proven guilty in a court of law – faces up to 70 years in federal prison if convicted of all counts. 

The Federal Bureau of Investigation’s Albuquerque Field Office, the Drug Enforcement Administration’s Albuquerque District Office, and the Department of Justice – Office of Inspector General conducted the investigation. Northern District of Texas Assistant U.S. Attorney Sean Long is prosecuting the case in the District of New Mexico.

In an effort to combat contraband in federal prisons, the U.S. Attorney’s Office has charged seven men with possessing of various prohibited items while behind bars.

“The Northern District of Texas will not tolerate contraband inside federal prisons, period,” said U.S. Attorney Leigha Simonton. “Inmates who handle drugs, phones, or child sexual abuse material risk having significant time tacked onto their sentences. The safety of prison guards, other inmates, and even those outside prison walls depends on our enforcement of these rules.”

"I am very pleased to work with our law enforcement partners and provide evidence that contributed to these indictments," said Dr. Scarlet Grant, Warden of the Seagoville Federal Correctional Institution. “When cell phones and narcotics are introduced into a prison, it causes significant safety and security concerns to the employees and adults in custody. Deterring contraband remains a top priority of the Federal Bureau of Prisons and these indictments send a clear message that smuggling contraband into a prison is a federal offense and it will not be tolerated."

“Contraband largely serves to facilitate criminal acts in prison and poses real and potential danger to Federal Correctional Institute Seagoville personnel, other prisoners and to the community at large,” said FBI Dallas Acting Special Agent in Charge James Godley. “We will continue to work with our federal partners to investigate contraband encounters.”

Those charged in five separate indictments include:

• Isaac Martinez, charged with possessing contraband in prison (methamphetamine)
• Nicholas Evans, charged with possessing contraband in prison (buprenorphine) and possession with intent to distribute a controlled substance
• Hugo Castaneda, charged with two counts of possession of a prohibited object (methamphetamine) and one count of possession with intent to contribute a controlled substance
• Abdullah El Hage, charged with possession of a prohibited object (methamphetamine)
• Matthew Rodriguez, charged with possession of a prohibited object (methamphetamine) and possessing contraband in prison (phone)
• Deaunte Lakeith Johunkin, charged with possession of contraband (K2) in prison and attempted possession with intent to distribute a controlled substance
• Richard King, charged with possession of child pornography (printed, black and white, sexually explicit photos of prepubescent girls)

All seven recently charged defendants are inmates at Federal Correctional Institute Seagoville, a low-security Bureau of Prisons (BOP) facility southeast of Dallas with a population of just under 1,800 male offenders.

According to BOP’s policy, prison contraband includes items that could reasonably be expected to cause physical injury or adversely affect the security, safety, or good order of the institution.

An indictment is merely an allegation of criminal conduct, not evidence. All defendants are presumed innocent until proven guilty in a court of law.

If convicted, the inmates may have additional prison time tacked onto their sentences.

Earlier this year, two men were charged with attempting to smuggle cell phones and marijuana into the yard of a federal prison in Fort Worth via a mesh bag affixed to a drone. Prison staff found the mesh bag hanging from a parachute cord on the side of a building after being notified of a drone in their airspace.

Joseph Mora and Reza Ayari both pleaded guilty to attempt to provide contraband to a prisoner and were sentenced to 58 and 50 months, respectively, in federal prison.  In Mora’s case, the Court ordered his 58-month sentence to be served consecutive to any sentence imposed in his other federal case. 

The Federal Bureau of Investigation’s Dallas Field Office conducted the investigations with the cooperation of the Federal Bureau of Prisons. Assistant U.S. Attorney Luis Suarez is prosecuting the Seagoville inmates’ contraband cases and Assistant U.S. Attorney Levi Thomas prosecuted the Fort Worth drone case.

A former Frisco man was sentenced yesterday to 52 months in prison and ordered to pay more than $38.9 million in restitution to the IRS, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.

Ronald James Paolucci, the 55-year-old co-founder and employee of American Management Staffing (AMS), was charged by felony information in January 2023 and pleaded guilty in February 2023 to conspiracy to defraud the United States and making and subscribing a false tax return. He was sentenced Monday by U.S. District Judge Sam A, Lindsay.

“We were proud to partner with IRS-CI on this important case,” said U.S. Attorney Leigha Simonton.  “We stand ready to prosecute any employer who pockets employees’ payroll taxes and those who otherwise refuse to meet their tax obligations.” 

“Nearly 70% of total U.S. revenues collected by the IRS are collected through employment taxes.  When the employer withholds the payroll taxes but fails to pay the taxes over to the IRS, they may be criminally investigated and prosecuted for failing to withhold, collect, and pay over the tax. This was the case with Mr. Paolucci, his failure to remit withheld taxes is not only a breach of trust but a serious crime with severe consequences,”  said Christopher J. Altemus Jr., Special Agent in Charge IRS Criminal Investigation, Dallas Field Office.  “In addition to failing to meet payroll tax obligations, Mr. Paolucci failed to report his personal compensation and was ordered to pay approximately $10 million in restitution for his personal tax obligations.  Let this sentence serve as a stark reminder: tax compliance is not optional; it is the law.”

According to court documents, AMS provided temporary staffing services to business clients. Mr. Paolucci was employed by AMS from approximately 2011 through 2020 and had control over AMS’ business affairs, including, approving payments and controlling AMS’s bank accounts.

AMS was obligated to pay the temporary employees and withhold and pay all applicable taxes for the employees. Mr. Paolucci withheld payroll taxes from the employees’ paychecks, including federal income taxes, Medicare and social security taxes. AMS was required to make deposits of the payroll taxes to the Internal Revenue Service (IRS) on a periodic basis and to file Employer’s Quarterly Federal Income Tax Return forms setting forth the total amount of wages, total amount of income tax withheld, total amount of social security and Medicare taxes due and the total tax deposits.

Mr. Paolucci agreed to continue to withhold payroll taxes from the temporary employees but understood that taxes would not be paid over to the IRS.  Mr. Paolucci continued to issue IRS Forms W-2 to the temporary employees representing to the employees and the IRS that AMS was withholding and paying to the IRS payroll taxes.

From 2014 through 2020, AMS paid temporary employees and withheld approximately $13 million in payroll taxes from its employees. During the same time, AMS issued IRS W-2 forms to the employees showing that AMS withheld approximately $13 million in payroll taxes from those employees, however, AMS did not make any payments to the IRS.

IRS – Criminal Investigation conducted the investigation. Assistant U.S. Attorney Marty Basu prosecuted the case.

A San Angelo man has been charged with sextorting minors, ranging from 11 to 17 years old, and adults across the United States, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.

Juelz Sincere Armstead, 21, was charged in a superseding indictment with seven counts of production and attempted production of child pornography, two counts of attempted production of child pornography, and ten counts of cyber stalking. He was arraigned on Wednesday before U. S. Magistrate John R. Parker and is currently in custody.

According to the superseding indictment, beginning in August 2021, Mr. Armstead persuaded at least seven minors to engage in sexually explicit conduct and produced visuals of such conduct. On February 26, 2024, Mr. Armstead attempted to do the same with two additional minors. Mr. Armstead used the images he produced to harass and intimidate the individuals and caused them substantial emotional distress. 

An indictment is merely an allegation, not evidence. Mr. Armstead is presumed innocent until proven guilty in a court of law.

Homeland Security Investigations, Tom Green County Sheriff’s Office, San Angelo Police Department, and several federal, state, and local law enforcement agencies in Texas, Indiana, Oregon, California, New Jersey, Colorado, Maryland, Pennsylvania, Kansas, North Carolina, Georgia, and Mississippi conducted the investigation. Assistant U.S. Attorney Callie Woolam is prosecuting the federal case.

The final defendant in the Medoc kickback conspiracy was sentenced yesterday to 10 months in federal prison for his role in a prescription kickback scheme that cost federal insurance programs more than $4.4 million, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.

The first indictment was filed in January 2020.  Those sentenced include:

• Kevin Douglas Kuykendall, cofounder of Medoc Health Services, sentenced to 36 months in prison and ordered to pay $4.4 million in restitution for conspiracy to solicit and receive illegal kickbacks
• Sabrina Burmester Kuykendall, Kevin’s wife, sentenced to 36 months’ probation and ordered to pay $4.4 million in restitution for conspiracy to solicit and receive illegal kickbacks
• Mark David Schneider, cofounder of Medoc Health Services, sentenced to 15 months in prison and ordered to pay $4.4 million in restitution for conspiracy to solicit and receive illegal kickbacks
• Michael Ray Schneider, sentenced to 14 months in prison and ordered to pay $4.4 million in restitution for conspiracy to solicit and receive illegal kickbacks
• Trenton Lynn Moody, sentenced to 12 months and 1 day in prison and ordered to pay  $257,500 in restitution for conspiracy to solicit and receive illegal kickbacks
• Cuong “Michael” Nguyen, founder of Total RX pharmacy, sentenced to 10 months in prison for misprision (concealment) of a felony and paid in restitution in the amount of $591,142
• Moky Chung, sentenced to 10 months in prison and ordered to pay $150,000 in restitution for conspiracy to solicit and receive illegal kickbacks

According to court documents, Medoc conspirators knowingly solicited illegal kickbacks from Total RX, a Rowlett pharmacy that was struggling to stay afloat.  

In December 2014, Medoc executives Kevin Kuykendall and Mark Schneider approached Total RX owner Cuong Nguyen with a proposal: Nguyen could convert Total RX from an infusion pharmacy into a compounding pharmacy and begin filling prescriptions for Medoc. In return for referring lucrative prescriptions to Total RX, Medoc would receive a 50 percent commission.

The initial agreement only covered prescriptions covered by private insurers and specifically excluded any prescriptions paid by federal insurance programs, such as Medicare, Medicaid, Tricare, and Worker’s Compensation. At the time, Kuykendall and Schneider acknowledged that Medoc could not get paid on prescriptions paid by federal insurance programs. (They later admitted they knew of the federal Anti-Kickback Statute (AKS), which makes it illegal to receive remuneration in return for the referral of prescriptions funded by federal insurers.)

However, in early 2015, Kevin Kuykendall directed Nguyen to enter into a sham employment agreement with Mark Schneider’s brother, co-defendant Michael Ray Schneider, which would grant him a 45 percent commission on all prescriptions covered by federal health insurance that were referred by Medoc to Total RX.

Though nominally an “employee” of the pharmacy, Michael Schneider would be neither trained nor supervised Total RX. He would not work out of the Total RX offices, would not perform duties at Total RX’s behest, and would rarely communicate with Total RX. In court documents, multiple defendants admitted that the employment agreement between Michael Schneider and Total RX served as a way to “paper up” the payment of illegal kickbacks on prescriptions paid out by federal insurers.  

Initially, Nguyen declined to execute the employment agreement, concerned that it specifically tied commission payments to government insurance programs. During a conference call, Kevin Kuykendall, Mark Schneider, and Moky Cheung agreed to designate prescriptions covered by federal health insurance programs as “<PRESCRIBER NAME> T”  in order to internally track federal prescriptions for purposes of calculating kickbacks owed to all the conspirators but yet conceal the criminal nature of the scheme.

Defendants Kevin Kuykendall, Mark Schneider, Moky Cheung, and Trenton Moody then created various entities, including “Barolo Partners,” to receive and distribute Mr. Schneider’s purported salary payments. A portion of the money deposited into the Barolo account was eventually dispersed to K&S Biotherapeutics, an entity controlled by the Kuykendalls, and to Radiux Resources, an entity controlled by Moky Chung.

Beginning in August 2015, Medoc entered into a similar scheme with Doctors Specialty Pharmacy (DSP).  In return for Medoc referring prescriptions to DSP, the pharmacy paid a hefty commission to the conspirators via Vantage Investment Partners, an entity they created for that purpose. The money was disguised as payment for “marketing services,” but no marketing occurred.  

In total for the various schemes, the conspirators submitted claims for $10,448,856.90. and received payment of $5,837,219.70.

In 2019, the U.S. Attorney’s Office for the Northern District of Texas intervened and filed its own complaint in a civil qui tam lawsuit that relator Mark Adams brought in 2017 pursuant to the False Claims Act, captioned United States ex rel. Mark Adams v. Medoc Health Services, L.L.C. et al., Civ. No. 3:17-CV-2977-M (N.D. Tex., Dallas Division).  Under the False Claims Act, a private party can file an action on behalf of the United States and receive a portion of the recovery.  As part of the resolution of these civil claims, Kevin and Sabrina Kuykendall paid $4 million, and Trenton Moody paid $600,000 to the United States.  In addition, Mark and Michael Schneider stipulated to entry of a $3 million civil judgment; Cuong “Michael” Nguyen to a $2.25 million civil judgment; and Moky Cheung to a $300,000 civil judgment.

FBI,  HHS-OIG, Department of Labor, and the Texas Attorney General’s Office Medicaid Fraud Control Unit,  conducted the investigation. Assistant U.S. Attorneys Donna Max, Doug Brasher, Nick Bunch (fmr), and Matthew Smid (fmr) prosecuted the criminal case. Assistant U.S. Attorneys Kenneth Coffin, Richard Guiltinan, Beverly Chapman,  Katie Carr Jacobs, and Clayton Ray Mahaffey (fmr) handled the civil suit.

A Granbury man was sentenced Thursday to 50 years in federal prison for filming himself molesting a 9-year-old girl, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.

Stephen Wayne, Ashley, Jr., 35, was charged in March and pleaded guilty in May to sexual exploitation of a child and possession of child pornography. He was sentenced Thursday by U.S. District Judge Mark Pittman to 600 months in prison – 360 months as to the sexual exploitation count and 240 months as to the child pornography count, to run consecutively. Judge Pittman also ordered the defendant to pay $13,500 in restitution to several victims and to register as a sex offender.

“This defendant chose to repeatedly sexually exploit a child and then made a conscious decision to film himself conducting these egregious offenses,” said HSI Dallas Assistant Special Agent in Charge Jesse Woods. “HSI is grateful for the collaboration of all our law enforcement partners for their role in this investigation, ensuring that this individual will never harm an innocent child again.”

According to court documents, the investigation began when the New South Wales Police in Australia began looking into an individual who shared links containing child pornography on Twitter (now known as X).  One of the links, which contained over 1,600 files of mostly child pornography, was traced to Mr. Ashley.

On March 11, agents executed a search warrant at Mr. Ashley’s residence, where they found Mr. Ashley’s phone. On the phone, they found a hidden folder containing videos of Mr. Ashley sexually molesting a 9-year-old girl.

After being Mirandized, Mr. Ashley admitted to officers that he began filming the child when she was 7 and continued to do so for a period of years.

Homeland Security Investigations’ Dallas Field Office conducted the investigation with the assistance of the New South Wales Police and the Hood County District Attorney’s Office. Assistant U.S. Attorney Aisha Saleem prosecuted the case.

Eight targets were arrested during a Project Safe Neighborhoods takedown in Lubbock on Wednesday, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.

Those arrested include:

• Corey Rashad Gilmore, indicted on one count of conspiracy to distribute and possess with intent to distribute fentanyl, one count of possession with intent to distribute cocaine, and one count of convicted felon in possession of a firearm
• Justin Tyrece Crawford, indicted on one count of convicted felon in possession of a firearm  
• Joe Lewis Ybarra, Jr., indicted on one count of felon in possession of a firearm
• Wesley Glenn York, Jr., indicted on one count of possession with intent to distribute marijuana, one count of possession of firearms in furtherance of a drug trafficking crime, and one count of convicted felon in possession of a firearm  
• Landon Henderson Jackson, indicted on one count of conspiracy to distribute and possess with intent to distribute methamphetamine and one count of possession with intent to distribute methamphetamine
• Matthew Nelson, indicted on one count of conspiracy to distribute and possess with intent to distribute methamphetamine and one count of possession with intent to distribute methamphetamine
• Kelli Lenay Hargrave, indicted on one count of conspiracy to possess with intent to distribute methamphetamine, two counts of distribution and possession with intent to distribute methamphetamine, and one count of possession with intent to distribute methamphetamine
• Philip Murphy, indicted on one count of conspiracy to possess with intent to distribute methamphetamine, one count of distribution and possession with intent to distribute methamphetamine, and one count of possession with intent to distribute methamphetamine

One additional target, Matthew De La Cruz, charged with one count of conspiracy to distribute and possess with intent to distribute methamphetamine and one count of possession with intent to distribute methamphetamine, remains a fugitive. Members of the public with information regarding his whereabouts are urged to contact the DEA’s Dallas Field Division at 214-366-6900.

“This Project Safe Neighborhoods takedown relied on the cooperation of more than three dozen agents and officers from local, state, and federal law enforcement, along with federal prosecutors from my office,” U.S. Attorney Leigha Simonton said at a press conference announcing the bust on Thursday. “PSN relies on the collective wisdom of law enforcement agencies – big and small – to identify, investigate, and prosecute our communities’ most significant drivers of violence. Instead of agencies working in silos, overlapping and competing, PSN brings federal and state law enforcement together to take action that will have outsized impact…. Following the tenets of the PSN program, we targeted repeat offenders known to be inciting crime here in Lubbock. These defendants all have rap sheets, including assault, robbery, controlled substances, and deadly conduct.”

“The apprehension of the suspects related to this case is a testament to the strong working relationships we experience between agencies here in West Texas,” said Lubbock Police Chief Seth Herman.

From the eight arrested defendants, law enforcement seized 12 firearms along with 946 grams of methamphetamine, 2 ounces of cocaine, and more than 10 pounds of marijuana.

If convicted, the defendants face a combined total of up to 330 months in federal prison.   

More than three dozen officers and agents participated in the takedown, including men and women from the Bureau of Alcohol, Tobacco, Firearms & Explosives Dallas Field Division – Lubbock Resident Agency; the Drug Enforcement Administration’s Dallas Field Division – Lubbock Resident Agency; the Lubbock Police Department;  the Lubbock County Sheriff’s Office; the Texas Anti-Gang Center; the Texas Department of Public Safety; the Texas Tech Police Department; the Plainview Police Department; Homeland Security Investigations’ Dallas Field Office; and the Federal Bureau of Investigation’s Dallas Field Office – Lubbock Resident Agency. The Lubbock County District Attorney’s Office also provided substantial assistance.

Assistant U.S. Attorneys Ryan Redd, Sean Long, Matthew McLeod, and Stephen Rancourt are prosecuting the cases with the assistance of Assistant U.S. Attorney Jeff Haag.

These cases are part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.

A self-professed stock “trader” who also served as the treasurer of a church’s charitable foundation was sentenced Friday to more than seven years in federal prison for fraud, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.

Thomas Calhoun Bain, 75, of Dallas, pleaded guilty to a felony information charging two counts of wire fraud in March. He was sentenced Thursday by U.S. District Judge Jane Boyle, who ordered him to pay $1,725,551 in restitution to various victims.

Mr. Bain, who served as the treasurer of a Dallas church’s charitable foundation from 2016 to 2022, was responsible for transmitting monetary donations to organizations that supported gospel-based initiatives.

According to plea papers, Mr. Bain recommended the foundation issue 15 large donations to an entity Mr. Bain claimed furthered the church’s mission. In turn, he told the entity that the foundation simply wanted to funnel the funds through the entity and on to other charities, in order to keep its donations anonymous.  He directed the entity to transmit all funds to him, purportedly so that he could distribute the money to the charities. 

Instead, Bain pocketed the funds, totaling approximately $1.4 million, and used it to support his lifestyle, including rent on a home in Highland Park, a membership to a country club, domestic and international travel, and a vacation rental in Aspen.

During the same time period, Mr. Bain also defrauded investors through his company, BainTrade. Though he had no professional licenses, certification, training, or specific educational background, he represented to investors that he was a “Trader” and falsely guaranteed an annual return of at least 8 percent on their investments with BainTrade, with a 50-50 split between himself and investors for any yearly return above 8 percent.

In fact, Mr. Bain engaged in a Ponzi-type scheme, using new investor funds to make distribution payments to prior investors. He put remaining investor funds toward his high-end rental home, country club membership, and travel, bolstering his appearance as a wealthy and successful “trader.”

To further legitimize the scheme, Mr. Bain generated fake contracts that he required investors to sign, and fraudulent account statements showing fake annual earnings and profits generated. He also falsely told investors that he was investing his own money.

Between 2010 and 2022, Mr. Bain fraudulently obtained more than $871,000 from BainTrade investors.

Federal Bureau of Investigation’s Dallas Field Office conducted the investigation. Assistant U.S. Attorney Jenna Rudoff prosecuted the case.

Spanish Schoolhouse, a company that offers Spanish language programs for preschool, kindergarten, and elementary-age children on nineteen campuses in the greater Dallas, Fort Worth, and Houston areas, will implement an anti-discrimination policy, accept students with epilepsy, and train its employees to administer anti-seizure medication as required by the Americans with Disabilities Act, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.

In March of 2021, a couple attempted to enroll their two-year-old child in Spanish Schoolhouse’s daycare program. They informed the program that the student had epilepsy. Spanish Schoolhouse accepted and enrolled the child and requested a “seizure action plan” drafted by the child’s physician. The plan submitted by the couple outlined treatment protocols should a seizure occur, including removing the student from the classroom upon onset of a seizure and administering a rectal medication for seizures lasting more than three minutes.

Citing the seizure action plan, the school reversed its acceptance decision. A director told the parents that the staff were uncomfortable with monitoring the student for potential administration of the medication and lacked the manpower to be able to remove the child from the classroom in the event of a seizure. The parents said it would be acceptable to treat the child inside the schoolroom, rather than removing the child. The school still refused to accept the child.

The Justice Department later concluded that the school’s decision violated Title III of the Americans with Disabilities Act (ADA), which requires businesses that serve the public to make “reasonable modifications” to policies, practices, and procedures to accommodate those with disabilities.

Spanish Schoolhouse entered into a settlement agreement with the United States Attorney’s Office on Aug. 29. The agreement requires the company to allow the child to enroll at any of its facilities and to pay the parents $5,000 to compensate them for the harm caused. It also requires the company to implement an Emergency Anti-Seizure Medication Administration Policy, to train necessary staff annually on seizure disorders and the administration of anti-seizure medication as well as CPR, and to advise all parents of students with seizure disorders of the policy.

Under the terms of the agreement, Spanish Schoolhouse must forward any complaints related to reasonable modifications to the Department of Justice within 30 days of receipt.

A Dallas man pleaded guilty Tuesday to defrauding investors out of more than $27 million in various oil and gas and water rights scams, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.

Dennis James Rogers, II, 35, originally of Las Cruces, NM, was charged via felony information. On Tuesday, he pleaded guilty to two counts of securities fraud.

“This defendant lined his own pockets at the expense of would-be investors, lying and cheating his way to a life of luxury,” said U.S. Attorney Leigha Simonton. “Today’s plea is a step towards justice for his victims.”

“Investment and securities scams result in high volumes of complaints and high loss amounts to victims, and also undermine the integrity of our financial markets at-large,” said Dallas FBI Special Agent in Charge Chad Yarbrough. “The FBI is committed to investigating criminal activity that is designed to defraud unsuspecting individuals and will continue to dedicate substantial resources to investigating ever-evolving fraud schemes like those perpetrated by the defendant.”

According to plea papers, in August 2019, Mr. Rogers successfully solicited $10 million from an investor, purportedly so that his company, Oregon Mountain Trading Company, could purchase fuel. The investor, identified in court documents by the initials J.I., handed over the funds after the pair agreed he would receive a fifty percent return on investment. Instead of purchasing fuel as promised, Mr. Rogers diverted the funds to a private jet service, a custom home builder, a law firm, an investment account, business entities, credit card companies, and other personal expenditures.

Ten months later,  Mr. Rogers solicited $4.1 million and $2.1 million from investors S.W. and D.W., respectively. He told the investors that a large international fuel company was exiting its stock position in Brownsville, Texas and planned to dispose of its fuel via an exclusive, invitation-only auction. (In reality, the company never held an auction and had no relationship with Mr. Rogers.) Instead of purchasing fuel at auction, Mr. Rogers diverted the money to fund an unrelated investment account, purchase real estate, and pay personal expenses.

Mr. Rogers also successfully collected $11 million in investments for a purported water rights deal associated with a dairy farm in New Mexico. In furtherance of the scheme, he held a call with an investor and an alleged member of the dairy farmer family. He also told investors he had an account worth $5 million that could be used as collateral. In reality, Rogers never had a relationship with the dairy farmer, the account had no collateral value, and there was never a contract for water rights.

Mr. Rogers now faces up to ten years in federal prison. His sentencing hearing is set for Dec. 18, 2024 before U.S. District Judge Ed Kinkeade.

The Federal Bureau of Investigation’s Dallas Field Office conducted the investigation. Assistant U.S. Attorney Marcus Busch is prosecuting the case.

Knox County, Texas will take steps to ensure qualified sign language interpreters, real-time transcription services, and other accommodations are available to deaf and hard-of-hearing citizens as required by the Americans with Disabilities Act, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.

In February of 2020, a citizen contacted the county, via email, about arranging a marriage ceremony at the county courthouse. He explained that both he and his fiancée (now spouse) are deaf and would need an interpreting service. The county’s Justice of the Peace responded, also via email, that “the arrangement for an interpreter will need to be made by you and funded by you.”

The Justice Department later determined that the response constituted a violation of Title II of the Americans with Disabilities Act (ADA), which requires public entities to “furnish appropriate auxiliary aids and services where necessary to afford individuals with disabilities … an equal opportunity to participate in, and enjoy the benefits of, a service, program, or activity of a public entity.”

The county entered into a settlement agreement with the United States Attorney’s Office on Aug. 27. The agreement requires the county to post a notice outlining its responsibilities under the ADA on its website, in conspicuous locations in each of its public buildings, and in a newspaper of general circulation serving the county. It also requires the county to identify and develop procedures for using vendors able to provide sign language interpreters, real-time transcription services, braille, and other accommodations, and to develop and implement a training program to educate its employees on the requirements of the Americans with Disabilities Act.   

Complaints that a county service, program, or activity is not accessible to persons with disabilities may be directed to the Knox County Judge at (940) 459-2191 or cojudge@knoxcountytexas.org. Under the terms of the agreement, any complaints made to the county alleging discrimination based on disability must be forwarded to the Department of Justice within 21 days. 

A law firm controller who embezzled over $1.48 million from her firm by inflating her payroll was sentenced today to more than four years in federal prison,  announced U.S. Attorney for the Northern District of Texas Leigha Simonton.

Christiane Kathleen Irwin, 44, was indicted in March 2022. She pleaded guilty in August 2023 to wire fraud and was sentenced Wednesday to 50 months in prison by U.S. District Judge Brantley Starr, who also ordered her to pay $1,483,008.56 in restitution.

According to court documents, Ms. Irwin, who worked for a law firm and was responsible for submitting payroll each week, falsely inflated her salary, which was set at approximately $140,000 annually, not including bonuses, some as high as $50,000.

In accordance with her fraudulent payroll submission, the firm’s payroll vendor transferred her purported pay from the firm’s bank account into her bank account every two weeks.

Over the course of three years, from 2019 to 2021, Ms. Irwin took home over $1.48 million in fraudulently obtained funds. Irwin used these funds to enhance her personal lifestyle, including the purchase of a luxury vehicle, and multiple vacations.

The Federal Bureau of Investigation’s Dallas Field Office conducted the investigation. Assistant U.S. Attorneys Nashonme Johnson and Jenna Rudoff prosecuted the case with the help of Financial Auditor Sheila Powell.

A Dallas drug trafficker who stashed fentanyl pills inside his child’s stuffed bear was sentenced today to more than eight years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.

Jorge Miguel Arteaga Medina, 23, was charged via criminal complaint in April 2023 and indicted later that month. He pleaded guilty in February to possession of a controlled substance with intent to distribute and was sentenced Tuesday by U.S. District Judge Ada Brown to 97 months confinement.

According to court documents, Mr. Arteaga Medina acquired fentanyl pills from a source of supply in Mexico known to agents as “22” and sold them to customers in the Dallas area.

In February 2023, a confidential source bought 171 grams of fentanyl pills from Mr. Arteaga Medina. During the meeting, which was recorded, the defendant advised the source to contact him if he/she needed more fentanyl pills in the future.

In April 2023, the confidential source again reached out to Mr. Arteaga Medina and asked to purchase more pills. The defendant said he had roughly 3,000 pills in his possession but would need to contact his superior in Mexico – believed to be “22” – if the source needed more than that.

Agents then approached Mr. Arteaga Medina and advised him of their investigation. He readily admitted to having a large quantity of pills in his apartment as well as a Smith & Wesson handgun inside the satchel strapped to his chest.

He brought the agents to his apartment, where his wife and small child lived, and showed them the pills. Some were in this bedroom closet, and the remainder were concealed in his child’s stuffed bear.

At Tuesday’s sentencing hearing, prosecutors introduced into evidence photographs of the pills inside the stuffed animal as well as posters Mr. Arteaga Medina kept in his home glorifying “Santa Muerte” (“Our Lady of Holy Death”), the skeletal so-called patron saint of drug dealers.

The Drug Enforcement Administration’s Dallas Field Division conducted the investigation. Assistant U.S. Attorney George Leal prosecuted the case.

The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. For more information about Organized Crime Drug Enforcement Task Forces, please visit Justice.gov/OCDETF.

Additional photographs introduced into evidence at sentencing available upon request. 

A Rowlett woman who helped her fiancé orchestrate the brutal murder of his ex-girlfriend was sentenced today to two consecutive life sentences, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.

Holly Ann Elkins was indicted in June 2023. A jury convicted her in April 2024 of conspiracy to stalk, stalking using a dangerous weapon resulting in death, and brandishing a firearm in relation to a crime of violence. She was sentenced Thursday by U.S. District Judge Jane Boyle.

Ms. Elkins’ former fiancé, Andrew Beard, previously pleaded guilty to stalking using a dangerous weapon resulting in death and discharging a firearm during a crime of violence and was sentenced to 43 years in federal prison.

“Month after month, Holly Elkins and Andrew Beard relentlessly harassed Alyssa Ann Burkett. They called her despicable names. They filed false police reports. They placed illegal contraband in her vehicle. And when all that failed, they plotted a particularly painful and bloody death,” said U.S. Attorney Leigha Simonton. “We can never bring back what Ms. Burkett’s family has lost. We can never heal the pain her young daughter has had to endure. But we can give them this measure of justice. Holly Elkins and Andrew Beard will never terrorize their family again.”

According to evidence presented at trial, Ms. Elkins helped plot the Oct. 2, 2020 murder of 24-year-old Alyssa Ann Burkett, Mr. Beard’s ex-girlfriend, with whom he shared a young daughter.

The government argued that Ms. Elkins – who apparently dreamt of a life with Mr. Beard and a mother/ child relationship with his daughter – repeatedly attempted to call into question Ms. Burkett’s fitness as a parent. When that failed, Ms. Elkins goaded Mr. Beard into taking Ms. Burkett’s life, labeling the victim a “c**t” and a “dumb b**ch” and a “garbage s**t mom.” 

The perpetrators’ relationship began in early April 2020. Later that month, Ms. Elkins spent her first weekend with Mr. Beard and his daughter. By May, the couple were shopping for engagement rings. In June, however, Ms. Elkins grew frustrated at Mr. Beard’s continuing association with Ms. Burkett, writing, “your BM [baby mamma] owns you,” “you continue to put BM first,” “you choose to be idk for lack of a better term submissive to her,” and “I don’t have want or need any bullshit from anyone.”

Ms. Elkins began a campaign to harass Ms. Burkett in summer 2020, shortly after Ms. Elkins moved into Mr. Beard’s home.

In June, Ms. Elkins and Mr. Beard conspired to place a GPS tracker on Ms. Burkett’s vehicle.  A  month later, Ms. Elkins placed a call to 911 under the name fake “Amber,” falsely claiming that Ms. Burkett’s car was driving erratically on the interstate.  In August 2020, Ms. Elkins falsely reported to police that Ms. Burkett’s mother had attacked her, creating scratches on her own chest to support the lie. Five days later, Ms. Elkins and Mr. Beard paid a private investigator to dig up dirt on Ms. Burkett and her new boyfriend. (The investigator, who testified at trial, found nothing incriminating.) In September, Ms. Elkins helped Mr. Beard plant drugs and a gun in Ms. Burkett’s vehicle; Mr. Beard then placed a call to police under a fake name claiming Ms. Burkett was selling drugs to black men out of her car.

Then, on Sept. 10, just three weeks before the murder, Ms. Elkins accompanied Mr. Beard to a sporting goods store, where he purchased a black rainsuit in cash.  On Sept. 14, two and a half weeks before the murder, Ms. Elkins purchased dark makeup from a drug store.  On Sept. 19, she accompanied Mr. Beard to a big box store, where they purchased .410 shotgun shells and a Camillus knife.

One week prior to the murder, Ms. Elkins texted Mr. Beard and said “I hope you handle it.” She requested that he be “ride or die” for her and said if he was not, she is not sure the relationship can continue. Shortly after that text exchange, Google records reflect that Andrew Beard began conducting searches for how to remove gunpowder from his hands.

On Oct. 2, 2020, Mr. Beard, dressed in a black rainsuit and disguised as a Black man, shot Ms. Burkett in the head with a shotgun while she sat behind the wheel of her car in her work parking lot. As she staggered out of the car, Mr. Beard grabbed her and stabbed and slashed her 44 times.  Her coworkers testified at trial that they found Ms. Burkett covered in blood and gasping for air in front of her office front door. She died as her coworkers tried to render aid to her.

During the murder, Ms. Elkins stayed at Beard’s home in Rockwall with Ms. Burkett’s daughter. In an attempt to create an alibi, she later claimed Mr. Beard had been home with her during the crime.

At the trial, Ms. Burkett’s new boyfriend testified that he believed Ms. Elkins was the “puppet master” behind the murder.
The Federal Bureau of Investigation’s Dallas Field Office, the Carrollton Police Department, and the Bureau of Alcohol, Tobacco, Firearms & Explosives’ Dallas Field Office conducted the investigation. Assistant U.S. Attorneys Gary Tromblay, Rick Calvert, and Ryan Niedermair are prosecuting the case. U.S. District Judge Jane Boyle presided over trial.