Northern District of Texas

The coconspirator in retired FBI agent William Stone’s scheme to con a local mother out of more than $700,000 by convincing her she was on “secret federal probation" was sentenced Thursday to nearly six years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.

Joseph Eventino DeLeon, 63, was indicted in December 2021. In February 2024, after 12 days of trial, a jury convicted him and Mr. Stone of conspiracy to commit wire fraud. (Mr. Stone was also convicted of five counts of wire fraud, one count of engaging in monetary transactions in property derived from unlawful activity, and one count of false impersonation of a federal officer.) Mr. DeLeon was sentenced to 70 months in federal prison by U.S. District Judge Ada Brown, who ordered him to pay $765,320.37 in restitution to his victim.

According to evidence presented at trial, Mr. Stone convinced his victim, C.T., that she was under “secret probation” for federal drug crimes in “Judge Anderson’s court in Austin, Texas.”

He and Mr. DeLeon told the victim that the fictious federal judge had appointed the two of them to administer the conditions of her six year “secret probation.” They required her to text them written reports of her daily activities, and to compensate them for their supervisory services, as well as any expenses they incurred. Copies of the five and six figure checks she wrote them were admitted into evidence at trial. Over the course of eleven months, C.T. gave Mr. Stone more than $700,000 and Mr. DeLeon more than $50,000.

Mr. Stone and Mr. DeLeon insisted that C.T. was prohibited from disclosing her probation status to anyone, and would risk imprisonment and loss of her children if she did not comply with the terms of her probation.

When C.T. began to question the situation, Mr. Stone assured her everything he’d done was “legit.”  

In order to further convince her the probation was real, the defendants monitored her cell phone communications, conducted physical surveillance of her, stated they had discussed C.T.’s probation with a psychiatrist, enlisted another person to impersonate the U.S. Drug Enforcement Administration “Intelligence Center” in a message inquiring about C.T., and even placed spoof calls between Mr. Stone, C.T., and the fictitious Judge Anderson.

They urged her to distance herself from her family, claiming her family members wanted to take her inheritance away from her, and persuaded her to transfer her inherited assets out of a trust and into an account under her own name. At one point, they claimed Judge Anderson would discharge C.T.’s probation if C.T. agreed to marry Mr. Stone. Mr. DeLeon even carried a weapon in C.T.’s home while purportedly providing “protective services” for her. 

Mr. Stone was previously sentenced to 87 months in federal prison and taken into custody when sentenced, as was Mr. DeLeon. 

The Texas Rangers and the U.S. Department of Justice Office of Inspector General conducted the investigation. Mr. Stone retired from the Federal Bureau of Investigation in October 2015.  The Bureau provided valuable assistance during the trial. Assistant U.S. Attorneys Jenna Rudoff, Donna Strittmatter Max, and Marcus Busch prosecuted the case with the support of Executive Assistant U.S. Attorney Katherine Miller and Appellate Assistant U.S. Attorney Lindsey Pryor. Assistant U.S. Attorney Dimitri Rocha is handling the forfeiture.  

A Waxahachie tax preparer was sentenced Thursday to three years in prison and ordered to pay more than $6.7 million in restitution to the IRS, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.

Bachary Rushid McGruder, the 45-year-old owner of M&M Enterprises and Consulting, TX, was indicted in November 2021 and pleaded guilty in November 2023 to aiding and assisting in the preparation of false tax returns. He was sentenced Thursday by U.S. District Judge Barbara M.G. Lynn.

During tax years 2015 through 2018, Mr. McGruder knowingly prepared more than 1,000 fraudulent tax returns for his clients, including fictitious Schedule A itemized deductions like gifts to charity, unreimbursed employee expenses (UEBE), and home mortgage interest; false Schedule C business losses; and false Residential Energy Credits (REC).

He included the false statements on clients’ tax returns without their knowledge, and had clients sign forms justifying the deductions and credits without explaining the forms’ contents to clients.

Mr. McGruder made his profits from the false tax returns by charging unusually exorbitant fees which were deducted from the individual tax refunds, charging clients as much as $2,800 for preparing their returns.

The fraud resulted in a tax loss of $6.73 million.

IRS – Criminal Investigation conducted the investigation. Assistant U.S. Attorney Josh Detzky prosecuted the case.  

A massage parlor owner whose employees offered illicit commercial sex has been federally charged, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.

Shaoping Wen, 64, and her associate, Xu Wang, 41, were charged via criminal complaint with conspiracy to use interstate travel in aid of racketeering enterprises. They were arrested in New Mexico on March 21 and made their initial appearances in Las Cruces Wednesday. They are now awaiting removal to Lubbock to face justice in a Northern District of Texas federal court.

According to the complaint, Ms. Wen allegedly owned and operated at least seven massage parlors where Asian women engaged in commercial sex. Mr. Wang, who identified himself as Ms. Wen’s son, allegedly operated the parlors on her behalf when Ms. Wen was out of state.

On at least 10 occasions between June 2023 and February 2024, undercover officers purchased $60 massages at Ms. Wen’s parlors in Texas and New Mexico.  The officers were generally greeted by lingerie-clad women who allegedly agreed to have sex with them for an additional fee of between $140 and $200. Several of the women allegedly used translation apps to negotiate sexual services.

When the women were arrested for prostitution, they identified themselves as Chinese citizens and listed their occupation as simply, “laborer.” On multiple occasions, Ms. Wen or Mr. Wang allegedly showed up to pay the arrested women’s cash bond.

Officers also observed Ms. Wen’s vehicle transporting Asian females directly from the airport to her massage parlors. Neighbors said the women never left the building. Searches of the premises revealed beds placed on the floors, suggesting the women lived at the massage parlors.

On at least one occasion, a passerby heard a woman screaming and entered the parlor to check-in. He reported seeing three women between the ages of 30 and 50 dressed in provocative clothing.

Officers found the massage parlors advertised on sites often used to advertise commercial sex. The ads included photos of partially naked women and promoted  “100% sexy” girls who “like to spend time with nice upscale gentlemen.” They advertised the “girlfriend experience,” “porn star experience,” and “fantasy outfits on request.”

A criminal complaint is merely an allegation of wrongdoing, not evidence. All defendants are presumed innocent until proven guilty in a court of law.

If convicted, Ms. Wen and Mr. Wang face up to five years in federal prison.

The Federal Bureau of Investigation’s Dallas Field Office – Lubbock Resident Agency, Homeland Security Investigation’s Dallas Field Office, the Texas Department of Public Safety, and the Lubbock Police Department conducted the investigation with the assistance of the FBI’s Albuquerque Field Office, HSI’s Albuquerque Field Office, the Lubbock County Sheriff’s Office, Immigration & Customs Enforcement (ICE), the Wolfforth Police Department, the Eddy County Sheriff’s Office, the Carlsbad Police Department, the Roswell Police Department, the Clovis Police Department, the Roswell Fire Department, the Carlsbad Fire Department, the Lubbock County District Attorney’s Office, and the U.S. Attorney’s Office for the District of New Mexico. Assistant U.S. Attorney Callie Woolam is prosecuting the case.

A Liberian man was sentenced yesterday to 20 years in federal prison for stealing $2.6 million in SNAP benefits from needy and disabled beneficiaries, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.

James Peabody, 34, pleaded guilty in August to conspiracy to commit wire fraud and was sentenced Tuesday by U.S. District Judge Mark Pittman, who called the crime “one of the most disturbing schemes” he’d seen during his time on the bench.

“The Supplemental Nutrition Assistance Program is often the only way low-income Americans can afford to feed their families. I can only imagine the devastation these victims felt at the cash register when they attempted to pay for their groceries and discovered their accounts had been emptied,” said U.S. Attorney Leigha Simonton. “These defendants callously preyed on the needy, disabled, and elderly. My heart breaks for them.”

“The defendant and their co-conspirators exploited a program designed to aid low-income families. They stole directly from thousands of victims that needed those funds to purchase food and other necessary household items,” said FBI Dallas Special Agent in Charge Chad Yarbrough. “The FBI and our partners worked together to hold these individuals accountable for stealing millions of dollars from the most vulnerable citizens in our community. We will not tolerate anyone that uses a federal program to enrich themselves at the expense of families who truly need and depend on the benefits.”

According to plea papers, the defendant admitted to defrauding the Supplemental Nutrition Assistance Program (SNAP, commonly known as food stamps).  

In furtherance of the scheme, Mr. Peabody and two coconspirators, Saybah Keihn, 48, and Margretta Jabbeh, 43, opened several African food stores. They applied for, and received, SNAP merchant privileges.  

They then used EBT (electronic benefit transfer) cards programmed with stolen SNAP account information – illegally obtained by placing so-called “skimming” devices on point-of-sale terminals in stores throughout the United States – and used them to  “purchase” groceries from their own stores.

With each swipe of the card, the defendants falsely represented to the USDA that actual SNAP beneficiaries were using benefits to purchase approved grocery items.  In reality, the beneficiaries were not present in the stores at the time of the transaction and no groceries were actually purchased.

As a result of the scheme, the U.S. Department of Agriculture (which administrates SNAP) deposited more than $2.6 million in bank accounts associated with their stores. When the beneficiaries whose accounts had been stolen attempted to use their SNAP benefits to purchase food, they learned there was no money in their accounts.  

For Tuesday’s sentencing hearing, several victims submitted statements revealing that that they were forced to rely on food banks, while one stated she resorted to eating “out of dumpsters.”

Another victim thanked the FBI “for investigating my case when no one else seemed to care.”

Mr. Keihn and Ms. Jabbeh both previously pleaded guilty to conspiracy to commit wire fraud and were sentenced to 108 and 129 months in federal prison, respectively.

The Federal Bureau of Investigation’s Dallas Field Office – Fort Worth Resident Agency and the USDA Office of Inspector General conducted the investigation with help from the Bedford Police Department, the Blue Mound Police Department, the Euless Police Department, and the North Richland Hills Police Department. Assistant U.S. Attorney Nancy Larson prosecuted the case.

An Aubrey woman was sentenced Monday to 10 years in prison and ordered to pay more than $2.2 million in restitution for defrauding elderly victims in romance schemes, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.

Ijeoma Okoro, 33, was indicted in September 2021 and proceeded to trial in December 2023. After seven days of trial and 10 hours of deliberation, a jury convicted her of one count of conspiracy to commit wire fraud and one count of conspiracy to commit money laundering. She was sentenced by Chief U.S. District Judge David Godbey to 10 years on each count, to run concurrently.

According to evidence presented at trial, Ms. Okoro and other fraudsters assumed fake names and trolled dating sites like Match.com and Zoosk, searching for targets.

Once the fraudsters ingratiated themselves to their often divorced or widowed victims with promises of long-term commitment, the fraudsters concocted elaborate stories about why they needed financial assistance.  A common story was that the fraudster had to travel overseas for work and was unable to access his bank accounts.  As a part of the story, the fraudster often claimed to experience an unexpected work-related crisis or a sudden family medical emergency.  The fraudster then asked the victims for money to cover the expenses and promised  to repay them in the near future.

Trusting victims sent thousands of dollars to bank accounts opened by the defendant and her coconspirators in the Northern District of Texas.  The defendant then distributed the fraudulent proceeds to coconspirators and retained a portion for herself. 

At Monday’s sentencing hearing, Chief Judge Godbey applied a sentencing enhancement for the defendant’s obstruction of the administration of justice, finding that Ms. Okoro committed perjury when she testified at trial that she never conspired with anyone to commit fraud or money laundering.

To date, four other codefendants have also been convicted for their involvement in the scheme, including: David Animashaun, sentenced to 24 months in federal prison for two counts of conspiracy to commit wire fraud; Oluwalobamise Michael Moses, sentenced to 24 months in federal prison for two counts of conspiracy to commit wire fraud;  Emanuel Stanley Orji, sentenced to 37 months in federal prison for conspiracy to commit wire fraud; and Frederick Orji, sentenced to 37 months in federal prison for conspiracy to commit wire fraud. The remaining indicted codefendant, Chukwuemeka Orji, remains a fugitive.

IRS – Criminal Investigation led the investigation with assistance from the Federal Bureau of Investigation’s Frisco Field Office, the Department of Homeland Security, and the Department of Labor - Office of the Inspector General. Assistant U.S. Attorneys Mary Walters, Jenna Rudoff, and Elyse Lyons prosecuted the case.

A Dallas fentanyl trafficker who admitted to dealing more than 142,000 counterfeit pills was sentenced today to 20 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.

Terrill Antwan Ray, 48, pleaded guilty in April 2023 to conspiracy to possess with intent to distribute a controlled substance and was sentenced Monday by Chief U.S. District Judge David Godbey, who called the amount of drugs in the case “staggering. 

In plea papers, Mr. Ray admitted that during a 2019 raid on his apartment, law enforcement seized more than 28,000 counterfeit fentanyl pills weighing more than 12.5 kilograms.  

During subsequent raids on the homes of two coconspirators, law enforcement seized an additional 114,000 counterfeit fentanyl pills, including 105,000 belonging to Mr. Ray, that weighed a combined 42 kilograms. They also seized an electromagnetic foil capping machine, hundreds of empty plastic pill bottles, more than $11,000 in U.S. currency, and two firearms. 

In plea papers, Mr. Ray admitted to distributing more than 142,000 counterfeit fentanyl pills marked to resemble hydrocodone and oxycodone.

Court documents detail text messages in which Mr. Ray and a down-line distributor discussed drug debts and referenced “school busses” (code for narcotics), “blues” (slang for oxycodone), and “dros” (slang for hydrocodone).

“Today’s sentencing of Terrill Ray exemplifies the commitment of DEA Dallas and our numerous law enforcement partners to relentlessly pursue those who distribute illicit fentanyl,” said DEA Dallas Special Agent in Charge, Eduardo A. Chávez.  “Mr. Ray is being held accountable for the poison that found its way into our community by his hand and the tens of thousands of pills that could have found their way into our love ones’ hands.  DEA Dallas remains relentless in our efforts to rid illicit fentanyl from the streets of Dallas, while equally supporting and standing firm with those family members and friends affected by the grip of illicit substance abuse.”

The Drug Enforcement Administration's Dallas Division and the Federal Bureau of Investigation’s Dallas Field Office conducted the investigation with the assistance of the Dallas Police Department, DeSoto Police Department and Cedar Hill Police Department. Assistant U.S. Attorney Linda Requénez and Abe McGlothin (fmr) prosecuted the case.

The case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations.

An Albuquerque mother who concealed a deadly dose of fentanyl inside her children’s luggage pleaded guilty yesterday to a federal drug crime, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.

Magdalena Silva Banuelos, 47, was indicted in November 2022. She pleaded guilty Wednesday to distribution of fentanyl before U.S. District Judge Barbara M.G. Lynn.

In plea papers, she admitted she gave her sons’ father the fentanyl that killed him.

On May 31, 2022, Ms. Silva Banuelos put her sons, ages 8 and 10, onto a flight from Albuquerque to Dallas to visit her ex-husband, their father.  

Surveillance video from Dallas / Love Field Airport shows that her ex-husband picked up the boys from the gate around 9:47 p.m., rifled through their luggage at around 10:17 p.m., and entered the airport restroom at around 10:26 p.m.  A few minutes later, he overdosed and died in a restroom stall, just steps away from his sons.  At 10:33 p.m., his sons exited the restroom, visibly distraught.

From inside the stall, investigators recovered a Clinique brand makeup container containing more than a gram of fentanyl.  In plea papers, Ms. Silva Banuelos admitted she packed the fentanyl for her ex-husband’s use.  

Text messages between him and Ms. Silva Banuelos confirmed that she knew he planned on ingesting the fentanyl and was aware of the risk it posed.

“Hey you need to be careful,” she wrote a few hours before he died.

“Yes ma’am. Very slow and easy,” he replied.

“Just one and then wait you’ll see,” she said. “Just one.”
“Ok cool. Thank you. Will do,” he said.

“No passing out on the kitchen floor,” she responded. “Seriously you could od. No dying on the kitchen floor… It’s going to f**k you up!!!

At her January 2023 detention hearing, the prosecutor said Ms. Silva Banuelos “used her minor children to mule drugs.”

“This case is a double tragedy: A pair of young boys lost one parent to drugs, and the other to the criminal justice system,“ said U.S. Attorney Leigha Simonton.  “This defendant allowed her two young sons to fly more than 500 miles cross-country with a highly lethal synthetic opioid stashed inside their suitcase, knowing full well how dangerous it was. These boys stood nearby as their father suffered a fatal overdose after ingesting it. The Justice Department will continue to fight until fentanyl is eradicated from our streets.” 

“Fentanyl not only destroys individuals, it also destroys families.  This tragic reality could not be more evident than when looking at the destruction caused by the actions of Ms. Silva Banuelos that terrible day,” said Special Agent in Charge Eduardo A. Chávez of the DEA Dallas Field Division.  “The DEA will never stop working to remove this terrible drug and its even more terrible effects from our communities so tragic events like this can never happen again.”

Under the terms of her plea agreement, Ms. Silva Banuelos faces 12 years in prison.

The Drug Enforcement Administration’s Dallas Field Division and the Dallas Police Department conducted the investigation with the assistance of the Office of the Medical Examiner, Southwest Institute of Forensic Science at Dallas, and Dallas Fire & Rescue. Assistant U.S. Attorney Courtney Coker is prosecuting the case.

A carjacker who kidnapped two people in an attempt to avoid law enforcement was sentenced Monday to 30 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.

Anthony Scott Gordon, 36, was indicted in November 2020 and pleaded guilty in September 2022 to kidnapping, carjacking, and brandishing a firearm in the commission of a crime of violence. He was sentenced Monday by U.S. District Judge Sam A. Lindsay.

In plea papers, Mr. Gordon admitted that on Aug. 6, 2020, he approached a Ford F150 parked off of Highway 20 in Fort Worth. With a gun in each hand, he ran up to the driver’s side door. As he shot one gun towards the street, he pointed the other at the driver, identified in court documents as M.G., and demanded she turn over the vehicle.  Fearing for her life, M.G. exited the vehicle and he sped away.

Four days later, Mr. Gordon entered through rear door of a retail store in Richardson, pointed a gun at an employee, identified in court documents as A.J., and demanded her vehicle, which was parked outside. Fearing for her life, A.J. handed over her keys. Mr. Gordon told her he would shoot her if she tried to call the police, then got into the vehicle and drove away.

Mr. Gordon further admitted that in late August, he kidnapped a victim, identified in court documents as M.D., in an attempt to prevent her from disclosing his criminal activity to law enforcement.

Mr. Gordon refused to leave M.D.’s location, struck her in the head with a firearm, and crushed her iPhone in his bare hands, rendering it inoperable. The following day, he dragged her down a flight of stairs and forced her into his car at gunpoint. She screamed for help and attempted to fight back, but he pushed her into the backseat, then began driving her around Dallas, saying they needed to “get out of the state.” M.D. convinced him to park at a Motel 6, where she managed to flee.  

Following her escape, the defendant messaged M.D., threatening, “I swear to god ima hurt you bad… I’m tellin u now ima find u I promised I’ll make it long and painful.”

In early September, he kidnapped yet another victim, identified in court documents as K.N., in an attempt to evade arrest.

Shortly after arriving in Fort Worth to conduct a drug transaction, Mr. Gordon spotted police and fled, jumping over multiple residential fences. He came upon K.N.’s house and entered through back door. He grabbed her by the neck, pointed a firearm at her, and led her at gunpoint towards the front of the house, where law enforcement was located. K.N. was able to break free and ran out the front door, where she was met by police.

A subsequent search of Mr. Gordon’s vehicle revealed a Smith & Wesson 40 caliber pistol and a stolen Mossberg 12-guage shotgun.

The Fort Worth Police Department, the Federal Bureau of Investigation’s Dallas Field Office, and the Dallas Police Department conducted the investigation. Assistant U.S. Attorneys Joseph Lo Galbo and Melanie Smith (fmr.) prosecuted the case.

Shortly after a jury was seated in his case, a Kennedale, Texas tax preparer pleaded guilty to a $2.6 million tax fraud, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.

Anthony “Tony” Floyd, 51, was charged in June 2023 with ten counts of aiding in the preparation and presentation of false tax returns. On the morning of his trial, shortly after a jury was seated, Mr. Floyd pleaded guilty to all 10 charges.

According to court documents, Mr. Floyd filed approximately 400 fraudulent tax returns that included false information designed to increase the amount of refund owed to the taxpayer.

He recruited victim “clients” outside big box stores and through other clients. He obtained their personal information, such as income and deduction information, via text or cell phone conversations, rarely meeting clients in person. Mr. Floyd purposely submitted the returns without reviewing with the taxpayer, then diverted all or most of the refund to his own account.

The resultant tax loss to the United States exceeded $2.6 million.

The tax filings included falsified W2s – filed on behalf of individuals purportedly working in catering, lawn care, event planning, interior décor, and other professions -- and included nonexistent charitable deductions, nonexistent college attendance, and even fictitious relatives.

“Mr. Floyd’s guilty plea shows that tax fraud is not a victimless crime,” said Christopher J. Altemus Jr., Special Agent in Charge of the IRS Criminal Investigation’s Dallas Field Office. “Mr. Floyd took advantage of his neighbors by preparing fraudulent tax returns and trying to steal over $2 million from the U.S. government. Mr. Floyd’s case should remind all tax practitioners to adhere to professional standards and follow the law.”

 “Everyone must ensure what is submitted is true and accurate when filing their taxes, even if they are prepared by a professional,” Altemus added.

Mr. Floyd now faces up to three years per count, for a total of 30 years in federal prison.

IRS – Criminal Investigations conducted the investigation. Assistant U.S. Attorneys P.J. Meitl, Nancy Larson, and Mark Nicols (fmr) prosecuted the case.

A methamphetamine trafficker who pleaded guilty on the eve of trial was sentenced to 25 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.

Christian Allen Meers, 45, was charged via criminal complaint in June 2023 and indicted the following month. On Sept. 25, 2023, the morning his trial was set to begin, Mr. Meers pleaded guilty to conspiracy to possess with intent to distribute a controlled substance. He was sentenced Friday by U.S. District Judge Reed C. O’Connor.

According to court documents, Mr. Meers operated his narcotics trafficking business out of a string of hotels, moving from hotel to hotel every few days to avoid detection by law enforcement.  

On June 14, 2023, law enforcement officers in Fort Worth detained Mr. Meers and a female associate following a traffic violation. Inside Mr. Meers’ satchel, they found the key card to a nearby La Quinta Inn. His associate told officers there was methamphetamine stashed inside a bag in the hotel room.

During a search of the room, officers found a Louis Vuitton bag stuffed with plastic baggies filled with more than 4,500 grams of meth, along with two firearms that had previously been reported stolen.  

Homeland Security Investigations and the Fort Worth Police Department conducted the investigation. Assistant U.S. Attorneys Shawn Smith and Frank Gatto prosecuted the case.

Seventeen alleged drug dealers were charged following a large scale drug bust in Abilene on Wednesday, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.

The operation involved more than 80 agents and officers from the Drug Enforcement Administration’s Dallas Field Division, the Federal Bureau of Investigation’s Dallas Field Office, the Taylor County Sheriff’s Office, the Abilene Police Department, Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms, & Explosives' Dallas Field Division, and IRS – Criminal Investigations. Over the course of the operation, agents seized 29 kilos of meth, 721 grams of cocaine, 1370 grams of fentanyl, and 60 firearms.

Those charged in four separate indictments unsealed Thursday include:
 

• Diana Nichole Perez, aka Diana Santana, charged with conspiracy to distribute and possess with intent to distribute controlled substances and with distribution and possession with intent to distribute methamphetamine
• Orson Rolando Ortegon, charged with conspiracy to distribute and possess with intent to distribute controlled substances and with possession with intent to distribute methamphetamine
• Rafael Perez, charged with conspiracy to distribute and possess with intent to distribute controlled substances and with distribution and possession with intent to distribute methamphetamine
• Eddie Ochoa Lomas, charged with conspiracy to distribute and possess with intent to distribute controlled substances and with possession with intent to distribute methamphetamine  
• Angel Alvarez, charged with conspiracy to distribute and possess with intent to distribute controlled substances and with possession with intent to distribute methamphetamine  
• Hannah Rai Gongora, aka Hannah Alvarez, charged with conspiracy to distribute and possess with intent to distribute controlled substances; possession with intent to distribute methamphetamine; and possession of firearms (a Taurus 9 mm semi-automatic pistol and a Sarsilmaz 9mm semiautomatic pistol missing a serial number) in furtherance of a drug trafficking crime
• Jacob Lee DeLeon, charged with conspiracy to distribute and possess with intent to distribute controlled substances and with distribution and possession with intent to distribute cocaine  
• Jason Eugene DeLeon, charged with conspiracy to distribute and possess with intent to distribute controlled substances and with distribution and possession with intent to distribute methamphetamine
• Nathaniel Deal, charged with conspiracy to distribute and possess with intent to distribute controlled substances and with possession with intent to distribute methamphetamine
• Lisa Ann Beckham, charged with conspiracy to distribute and possess with intent to distribute controlled substances and with possession with intent to distribute methamphetamine
• Gloria Santibanez, charged with conspiracy to distribute and possess with intent to distribute controlled substances and with possession with intent to distribute methamphetamine
• Petra Soliz, charged with conspiracy to distribute and possess with intent to distribute controlled substances and with distribution and possession with intent to distribute methamphetamine
• Alexandrea Delgado, charged with conspiracy to distribute and possess with intent to distribute controlled substances and with possession with intent to distribute methamphetamine
• Laura Trevino, charged with conspiracy to distribute and possess with intent to distribute controlled substances and with possession with intent to distribute methamphetamine
• Juan Manuel Oliveros, Jr., charged with possession with intent to distribute methamphetamine
• Joseph Brassell, charged with possession to distribute fentanyl
• Joshua Gosson: charged with possession with intent to distribute methamphetamine and with possession of a firearms (a Rohm, RG10 Model, .22 caliber short barrel revolver) in furtherance of a drug trafficking crime

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 face up to life in federal prison.

The Drug Enforcement Administration’s Dallas Field Division, the Federal Bureau of Investigation’s Dallas Field Office, the Taylor County Sheriff’s Office, and the Abilene Police Department 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.

A DeSoto man who sex trafficked women for more than a decade was sentenced last week to 30 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.

Phillip Jay Curlett, 34, was indicted in October 2023 and pleaded guilty later that month to conspiracy to commit sex trafficking through force, fraud, and coercion. He was sentenced Friday by U.S. District Judge Mark Pittman.

“Human trafficking is one of the most egregious crimes the HSI investigates,” said Homeland Security Investigations Dallas Special Agent in Charge Lester R. Hayes Jr. “HSI’s role is simple; we will find and prosecute those who force victims into this degrading and inhumane lifestyle.”

According to court documents, Mr. Curlett trafficked multiple women, brutally beating several.

According to court documents, one victim told investigators that when she first met Mr. Curlett, he gave her a fake name and asked her to spend the night with him. Believing they were embarking upon a dating relationship, she consented.

He then drove her to a local motel and ordered her to “go to work.” That same night, she saw her first two commercial sex customers.

Mr. Curlett went on to advertise the victim’s commercial sex services online and forced her to tun her proceeds over to him, threatening to hurt her if she did not make enough money for him. He forced her to use methamphetamine so that she could stay awake to maximize profits, and assaulted her on multiple occasions, including after she tried to leave.

Homeland Security Investigations conducted the investigation with the assistance of the North Texas Trafficking Task Force. Assistant U.S. Attorney Brandie Wade prosecuted the case. 

Midland man who committed a burglary of College Avenue Jewelry and Pawn in Snyder, Texas sentenced to the statutory maximum 10 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.

Bradley Lynn Bishop, 46, was charged via criminal complaint in June 2023 and pleaded guilty to one count of theft of firearms from a Federal Firearms Licensee in September 2023. Mr. Bishop was sentenced today before U.S. District Judge James Wesley Hendrix who made the statement at the hearing, “We have to bolt down everything in this courtroom or you would steal it.”

“We are proud to have worked with ATF on this case and will continue to work tirelessly with our law enforcement partners to bring defendants who steal from Federal Firearms Licensees to justice,” said U.S. Attorney Simonton. “Solving burglaries and robberies of our Federal Firearm Licensee partners is at the top of ATF’s national priorities.”

“Mr. Bishop thought that he could act under the cover of darkness, in a company vehicle, and make a quick buck selling stolen guns. He was wrong. He was wrong again when he tried to run from officers. Snyder and the surrounding communities are safer with Mr. Bishop off the streets,” stated ATF Dallas Field Division Special Agent in Charge Jeffrey C. Boshek II.

According to court documents, on June 26, 2023, law enforcement responded to College Avenue Jewelry and Pawn in response to a burglary where 70 firearms were stolen from the business the previous day. During the investigation, law enforcement determined that the building appeared to have been breached by a hole cut in the wall. Once in the building the suspect unlocked and unlatched the rear door. The alarm sensors on the top of the rear exit door were also disabled and wires removed. A nearby business had a camera that faced the rear of the Pawn shop and revealed a white Dodge pickup pulling into the back of the shop. The truck was observed coming and going from the business three separate times, an individual could be seen walking to and from the truck with a bag in their hand.

Law enforcement searched a local license plate reader system for a vehicle matching the Dodge truck and a match was found. The license plate was confirmed to be a company truck for Trend Services. The company was contacted and they advised that the vehicle had GPS tracking and had been located near College Avenue Jewelry and Pawn on the night of the burglary. Trend Services also confirmed that Mr. Bishop was the driver assigned to that vehicle.

The day after the burglary, law enforcement went to the residence of Mr. Bishop. The Doge pickup was parked behind the house, as agents approached the pickup they observed the driver’s side door open and a pair of feet on the ground next to the door. Mr. Bishop fled the scene on foot and was taken into custody after a foot chase. A search of the truck revealed six of the firearms and an electrical meter stolen from the Pawn shop.  

The Bureau of Alcohol, Tobacco, Firearms, & Explosives, with assistance from the Snyder Police Department conducted the investigation. Assistant U.S. Attorney Stephen Rancourt prosecuted the case.

Dallas woman sentenced to 12.5 years in federal prison for drug and firearm charges, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.   Danette Ozuna, 48, was indicted in October 2022 and she pleaded guilty in September 2023 to one count each of possession of a controlled substance with intent to distribute and possession of a firearm by a convicted felon. Ms. Ozuna was sentenced Wednesday by U.S. District Judge Brantley Starr.    According to court documents, in March 2022 a confidential informant made multiple purchases of methamphetamine from Ms. Ozuna at the Star Motel located in Dallas.  Following those purchases, in May 2022 law enforcement executed a search warrant at the hotel and located Ms. Ozuna in the hotel room. While she was being taken into custody, Ms. Ozuna told officers there was a handgun under the pillow of the bed.   During the search, officers located a handgun, drug ledger, bank bag containing $7,006 in cash and a red bag containing methamphetamine. Additional methamphetamine was located in the nightstand drawer.   At the sentencing hearing, prosecutors discussed a sign in the hotel room that listed rules for drug purchases:

Please Read First!

1) I don’t want to do no fronts, and if I do the price goes up!

2) You only get a price break when 4 and up

3) If you Owe me money you will not get more until Debt is cleared.

4) price went up on me So goes up for you too!

4 - 650

1 - 175.00

½ - 125.00

7 - 80.00

8 Ball - 50

Teen - 30

Anything above that 150 piece

5) what you have $ for is what you will get - ne extra, No fronts

I have too much money out and I have my own Bills to pay!

If you ask after Reading this you will Be directed back to read it Over again!

No exceptions! Thank you!

Ms. Ozuna was convicted on April 2, 2014 of a crime in the 86th Judicial District Court of Kaufman County and was sentenced to 10 years imprisonment. That conviction made it a federal crime for her to possess a firearm.

The Drug Enforcement Administration, Kaufman County Sheriff’s Department, and the Dallas Police Department conducted the investigation. Assistant U.S. Attorney George Leal prosecuted the case.

A Plano man has been charged with obstruction and making a false statement, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.

Fredrick Antonio Waters, 47, was indicted last week on one count each of obstruction of official proceeding and false statement. He was arrested Thursday and made his initial appearance Friday before U.S. Magistrate Judge Renee Harris Toliver.

According to the indictment, on February 8, 2022, Mr. Waters disclosed to an individual that she was the target of a criminal investigation. When a Special Agent with Homeland Security Investigations asked Mr. Waters about disclosing the information he responded by saying, “No I was looking up an humanitarian case and typed in the wrong Anumber.”  That statement was false because Mr. Waters knew he deliberately typed an Alien number issued to a specific individual to find out if she appeared as a subject in any Department of Homeland Security investigative system.

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

If convicted, he faces up to 25 years in federal prison.

The Homeland Security Investigations – Office of Professional Responsibility – El Paso office conducted the investigation. Assistant U.S. Attorney Mary Walters is prosecuting the case.

A darknet fentanyl dealer was sentenced Friday to 293 months in federal prison for multiple drug crimes and possession of child pornography, announced U.S. Attorney for the Northern District of Texas Leigha Simonton. 

Sean Shaughnessy, 55, was indicted in April 2019 and was convicted at trial in June 2023 of conspiracy to possess with intent to distribute a controlled substance, conspiracy to possess with intent to distribute a controlled substance analogue, distribution of controlled substances, and possession of child pornography. He was sentenced before U.S. District Judge Sam A. Lindsay.

According to evidence presented at trial, Mr. Shaughnessy sold fentanyl, carfentanil (a frequently abused elephant tranquilizer), pentedrone, and fentanyl and pentedrone analogues over the dark web, an unindexed portion of the internet accessible only via specialized software that allows users to conduct transactions with relative anonymity. His buyers purchased the drugs on dark web marketplaces using cryptocurrencies like bitcoin, and Mr. Shaughnessy shipped the drugs to their addresses in the Dallas area and all over the world.

Multiple former customers testified at Mr. Shaughnessy’s trial, noting the drugs Shaughnessy sold them, including fentanyl and its analogues, arrived to their DFW area homes very quickly and were of high potency.

Just days after purchasing fentanyl analogues from Mr. Shaughnessy, one of his customers, a young man in his 20s, died of an overdose involving that substance.  

A Homeland Security Investigations Special Agent testified about the undercover operation that identified Mr. Shaughnessy, explaining that Mr. Shaughnessy directed tens of thousands of dollars of his illicit drug proceeds to be sent to Mr. Shaughnessy in the Dallas area.

Another agent testified that during an interview with law enforcement, Mr. Shaughnessy claimed that the agents would have to “check his taxes” to determine what Mr. Shaughnessy did for a living. Agents contacted the Internal Revenue Service, which indicated Mr. Shaughnessy had filed no taxes for the relevant time periods.

In a video of his July 2016 arrest played for the jury, Mr. Shaughnessy, with white powder visible around his nose, removed and dropped a baggie of drugs from his pocket while officers were placing handcuffs on him, and he then attempted to kick it out of officers’ view. When officers noticed the baggie, the defendant insisted, “that ain’t mine,” though it was plainly visible on the officers’ body-camera footage.

Homeland Security Investigations’ Dallas and New York Field Offices conducted the investigation in partnership with the U.S. Postal Inspection Service, U.S. Customs & Border Protection, the Irving Police Department, and the Sacramento District Attorney’s Office. Assistant U.S. Attorneys Joe Magliolo and Gary Tromblay prosecuted the case.

A retired FBI agent who convinced a Granbury woman she was on “secret probation” and conned her out of more than $700,000 was sentenced Tuesday to 87 months in prison followed by a term of three years supervised release, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.

In August 2023, after 12 days of trial, a federal jury convicted William Roy Stone, Jr., 65, of one count of conspiracy to commit wire fraud, five counts of wire fraud, one count of engaging in monetary transactions in property derived from unlawful activity, and one count of false impersonation of a federal officer. He was sentenced Tuesday by U.S. District Judge Ada Brown.

Coconspirator Joseph Eventino DeLeon, 64, was also convicted at trial of conspiracy to commit wire fraud. Mr. DeLeon is scheduled to be sentenced March 5, 2024.

According to evidence presented at trial, Mr. Stone convinced his victim, C.T., that she was under “secret probation” for federal drug crimes in “Judge Anderson’s court in Austin, Texas.”

He and Mr. DeLeon told the victim that the fictious federal judge had appointed the two of them to administer the conditions of her six year “secret probation.” They required her to text them written reports of her daily activities, and to compensate them for their supervisory services, as well as any expenses they incurred. Copies of the multiple six figure checks she wrote them were admitted into evidence at trial. Over the course of eleven months, C.T. gave Mr. Stone more than $700,000 and Mr. DeLeon more than $50,000.

Mr. Stone and Mr. DeLeon insisted that C.T. was prohibited from disclosing her probation status to anyone, and would risk imprisonment and loss of her children if she did not comply with the terms of her probation.

When C.T. began to question the situation, Mr. Stone assured her everything he’d done was “legit.”  

In order to further convince her the probation was real, the defendants monitored her cell phone communications, conducted physical surveillance of her, stated they had discussed C.T.’s probation with a psychiatrist, enlisted another person to impersonate the U.S. Drug Enforcement Administration “Intelligence Center” in a message inquiring about C.T., and even placed spoof calls between Mr. Stone, C.T., and the fictitious Judge Anderson.

They urged her to distance herself from her family, claiming her family members wanted to take her inheritance away from her, and persuaded her to transfer her inherited assets out of a trust and into an account under her own name. At one point, they claimed Judge Anderson would discharge C.T.’s probation if C.T. agreed to marry Mr. Stone. Mr. DeLeon even carried a weapon in C.T.’s home while purportedly providing “protective services” for her. 

The Texas Rangers and the U.S. Department of Justice Office of Inspector General conducted the investigation. Mr. Stone retired from the Federal Bureau of Investigation in October 2015.  The Bureau provided valuable assistance during the trial. Assistant U.S. Attorneys Jenna Rudoff, Donna Strittmatter Max, and Marcus Busch prosecuted the case with the support of Executive Assistant U.S. Attorney Katherine Miller and Appellate Assistant U.S. Attorney Lindsey Pryor; Assistant U.S. Attorney Dimitri Rocha is handling the forfeiture.

Two individuals have been sentenced to a combined 20+ years in federal prison for trafficking fentanyl in the Fort Worth area, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.

First, Rhance Guerin, 27, was charged in August 2023 via criminal complaint and pleaded guilty in October to one count of conspiracy to possess of a controlled substance with intent to distribute. He was sentenced yesterday by U.S. District Judge Reed C. O’Connor to 108 months in prison.  

According to court documents in Mr. Guerin’s case, on August 2, 2023, based on information that Mr. Guerin was selling fentanyl pills, the Johnson County STOP Special Crimes Unit (STOP SCU) conducted an arrest and search warrant operation in Fort Worth, Texas resulting in the arrest of Mr. Guerin and the seizure of 425.05 grams of fentanyl, 3.923 kg of marijuana, 14.65 grams of cocaine, 253.90 grams of psylocibin, and 3 firearms. Mr. Guerin is a documented Crips gang member.

Second, Willie Bryant, 39, was charge in May 2023 via criminal complaint and pleaded guilty in October to one count of conspiracy to possess of a controlled substance with intent to distribute. He was sentenced on February 2, 2024 by U.S. District Judge Mark Pittman to 135 months in prison.

According to court documents in Mr. Bryant’s case, on May 25, 2023, a Crime Stoppers Tip was received that Bryant was distributing black tar heroin, cocaine, crack, fentanyl, China white heroin, Xanax, and ecstasy from a Fort Worth residence. Law Enforcement obtained a search warrant for the residence and located approximately 24 grams of methamphetamine, 15 grams of black tar heroin, 51 fentanyl pills, 5 grams of cocaine and 1.65 ounces of marijuana near the location where Mr. Bryant was located. A search of the bathroom revealed a large cutout in the wall behind a mirror that contained 10 firearms, drivers licenses, identification cards, bank cards and social security cards issued to 10 different individuals. A doctor’s prescription pad, two bricks of fentanyl, a brick of heroin, a clear plastic Tupperware container containing methamphetamine, two plastic containers containing ecstasy pills, two plastic containers containing black tar heroin, and a small plastic container with additional fentanyl powder were also located in the cutout.

Homeland Security Investigations conducted the investigations. Assistant U.S. Attorney Shawn Smith prosecuted the cases.

Following an 8-day trial, a Texas doctor who unlawfully prescribed powerful opioids has been convicted of one count of conspiracy to distribute a controlled substance and six counts of unlawful distribution of a controlled substance, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.

On Monday, a jury convicted Leovares A. Mendez, a 58-year-old doctor who co-owned and operated Cumbre Medical Center, LLC in Dallas, on all counts. He will be sentenced at a later date.

Codefendant Cesar Pena-Rodriguez, 56, pleaded guilty on January 17, 2024, 5 days before trial was scheduled to begin, to one count of conspiracy to distribute a controlled substance. Dr. Pena-Rodriguez is scheduled to be sentenced on April 22, 2024. 

According to evidence presented at trial, Dr. Pena-Rodriguez and Dr. Mendez issued numerous prescriptions without a legitimate medical purpose and outside the usual course of professional practice. Specifically, the defendants repeatedly issued prescriptions for controlled substances, including hydrocodone, alprazolam, and tramadol to undercover agents posing as patients in exchange for $250 cash payments.

The defendants sold medically unjustified prescriptions to undercover agents in 24 undercover visits.  At trial, the evidence showed Dr. Mendez issued prescriptions despite performing only minimal or perfunctory medical evaluations during short visits, some only lasting one minute.  Video and audio recordings of the visits made by the undercover officers showed a pattern of the officers requesting the medications by name with no complaint of pain.  On multiple occasions, Dr. Mendez coached the undercover officers as to what to say if ever contacted by law enforcement in relation to the illegal prescriptions. 

Dr. Mendez now faces up to 140 years in federal prison – 20 years per count.

The Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorneys Donna Strittmatter Max, Marty Basu and Renee Hunter prosecuted the case, with support from Assistant U.S. Attorney Gail Hayworth.

 

A Mansfield, Texas man who used Snapchat to inappropriately communicate with 14-year-old boy was sentenced Friday to 210 months in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.

Juan Aguilera Duran, 33, was charged via criminal complaint in May 2023 and was indicted in August 2023. He pleaded guilty in October 2023 to receipt of child pornography. He was sentenced Friday by U.S. District Judge Reed C. O’Connor, who also ordered the defendant to a lifetime of supervised release.

“Our dedicated federal prosecutors are committed to taking child predators like this defendant off the street,” said U.S. Attorney Simonton.  “We thank the Secret Service and Mansfield Police Department for their tireless efforts in investigating cases like this to keep the kids in our communities safe.”

“The Secret Service is committed to using our forensic and investigative capabilities to help catch criminals who prey on the most vulnerable among us,” said Christina Foley, Acting Special Agent in Charge of the U.S. Secret Service’s Dallas Field Office. “We are proud of the coordinated effort with our partners from the Mansfield Police Department and U.S. Attorney’s Office to ensure that justice was served.”

“The Mansfield Police Department values partnerships,” said Mansfield Chief of Police Tracy Aaron. “This case is a testament to the great work that occurs when agencies collaborate and work together for the common good to fight evil in our community. This particular unit is established to protect our most valuable and vulnerable, our kids. Job well done from the start to the finish.” 

According to court documents, on August 13, 2022, the Mansfield Police Department was dispatched to a residence in Mansfield, Texas to meet with a 14-year-old boy who received sexually explicit messages, images and videos via Snapchat from Mr. Duran. Search and arrest warrants were obtained that later resulted in Duran pleading Guilty to receiving Child Pornography.

Mr. Duran later pled guilty to receiving images of child pornography on his computer.

The Mansfield Police Department, Tarrant Co. District Attorney’s Office Digital Forensics and Technical Services, and Secret Service conducted the investigation. Assistant U.S. Attorney Brandie Wade prosecuted the case.

Four defendants in separate, but related, cases pleaded guilty for their roles in a scheme to pay and receive kickbacks in relation to toxicology tests, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.

Mark Rubin, 58, Renee Field, 44, Kelly Nelson, 52, and Carlos Hornedo, 61, were all charged via felony informations in December 2023. Mr. Rubin, on January 17th, and Mr. Hornedo, on January 10th, both pleaded guilty to one count of conspiracy to solicit and receive illegal kickbacks. On December 13th, Ms. Field and Ms. Nelson both pleaded guilty to one count of conspiracy to pay and receive health care kickbacks. The defendants each face a maximum penalty of not more than five years in federal prison, a $250,000 fine, and may be ordered to pay restitution.

According to the plea documents filed in the case, Ms. Fields was the owner and the Clinical Director at RK Clinical Solutions, LLC (“RK”). Ms. Nelson was the co-owner of RK. RK sought to financially incentivize medical providers to send tests to RK by providing them with illegal financial incentives that were disguised as legitimate business transactions.

Dr. Rubin, a pain management doctor, agreed to submit the majority of his toxicology orders to RK in exchange for kickbacks He also agreed to order a significant number of toxicology tests to justify the kickbacks. RK was paid by Medicare and other federal healthcare programs in excess of $481,000 and in exchange, Dr. Rubin received over $330,000 in kickbacks. The kickbacks consisted of medical advisor agreement, in which Dr. Rubin would be paid for theoretical advisory services. Dr. Rubin did not perform services sufficient to justify his compensation, was not paid on an hourly rate, and the agreements were used as a way to funnel kickbacks to Dr. Rubin.

In a similar fashion, Dr. Hornedo, a medical doctor, agreed to order certain toxicology tests for patients he saw and ordered the test to be performed by Unified Laboratory Services, LLC (“Unified”) and Spectrum Diagnostic Laboratory, LLC (“Spectrum”). Dr. Hornedo agreed to submit a substantial number of his toxicology orders to Unified and Spectrum in exchange for kickbacks. He submitted orders that resulted in billings by Unified and Spectrum in excess of $4,100,000 to federal health care programs. In exchange, Dr. Hornedo received approximately $412,000 in kickbacks, $45,000 in lease payments, $109,000 in medical advisor payments and ownership shares in Reliable Labs, LLC.

The Federal Bureau of Investigation, the Defense Criminal Investigative Service (DCIS), and the Veterans Affairs’ Office of Inspector General is investigating the case, along with the assistance of the U.S. Department of Health and Human Services’ Office of Investigations. Assistant U.S. Attorneys P.J. Meitl and Nancy Larson are prosecuting. 

The founder of Slync, a supply-chain management software startup, has been convicted of defrauding investors out of at least $25 million, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.

Christopher Kirchner, 36, was charged via superseding indictment last month. He was previously charged via indictment with wire fraud and money laundering.  After 4 days of trial, a jury convicted him today of four counts of wire fraud and seven counts of engaging in monetary transactions in property derived from specified unlawful activity.  

According to evidence presented at trial,  Mr. Kirchner – who served as Slync’s CEO from 2017 until 2022, when he was terminated by the Board of Directors due to allegations of misconduct – converted at least $25 million in investor money to his own personal use.

Records indicate that Slync raised roughly $7 million in its Series A investment round and roughly $50 million in its Series B investment round. All investor funds, which were supposed to be used for “product development and other general corporate purposes,” were wired into the company’s account at Silicon Valley Bank.

Mr. Kirchner misappropriated the investor funds in various ways: Between April 2020 and March 2022, Mr. Kirchner initiated nearly 100 wire transfers moving money from Slync’s Silicon Valley Bank account into the company’s account at JPMorgan Chase Bank – an account only he had access to. He then wired much of the money from the Chase account to his personal bank accounts.  In addition, Mr. Kirchner wired $20 million directly from Slync’s Silicon Valley Bank account into his personal checking account.  He used some of those funds to buy a $16 million private jet and to secure a luxury suite at the stadium of a Dallas-area professional sports team.

When Slync, drained of funds, struggled to make payroll in the spring of 2022, Mr. Kirchner attempted to replace some of the money he had misappropriated by convincing at least four investors to wire approximately $850,000 to Slync as part of a purported Series C investment round.  Slync’s Board of Directors never authorized a Series C investment round. 

In the meantime, Mr. Kirchner offered various explanations for Slync’s payroll issues – all of which were untrue.

Mr. Kirchner also fired a Slync employee after the employee reported to the Board of Directors that Mr. Kirchner may have falsely exaggerated Slync’s financial performance to investors.

Immediately following his suspension by the Board of Directors, in late July 2022, Mr. Kirchner removed certain IT administrator privileges from key Slync employees, preventing the employees from accessing Slync’s computer systems.  He then attempted to delete approximately 18 gigabytes of Slync data, including emails.

Mr. Kirchner now faces up 20 years in federal prison per count of wire fraud and up to  10 years in prison per count of engaging in monetary transactions in property derived from specified unlawful activity .

The Federal Bureau of Investigation’s Dallas Field Office conducted the investigation. Assistant U.S. Attorneys Joshua D. Detzky, Nashonme Johnson, and Jay Weimer prosecuted the case. Assistant U.S. Attorney Dimitri Rocha is handling the forfeiture.

Following a five-day trial, a physician’s assistant who injected amniotic fluid into patients’ joints in a dubious attempt at pain management has been convicted of conspiracy to commit health care fraud and 12 counts of healthcare fraud, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.

On Monday, after less than one hour of deliberation, a jury convicted Ray Anthony Shoulders, a 36-year-old physician’s assistant at a Fort Worth pain management clinic, on all counts. He will be sentenced at a later date.

“Not only did this defendant attempt to scam Medicare out of hundreds of thousands of dollars, he did something far worse by potentially endangering his patients’ health in recommending that they be injected with a drug that had not been approved for that purpose,” said U.S. Attorney Simonton.  “In a very real way, he sought to profit off of his patients’ pain for his financial benefit, and I am proud of our federal law enforcement partners and our experienced prosecutors for bringing him to justice.”

“Medicare providers who are motivated by greed and financial gain place our most vulnerable citizens at risk,” said Acting Special Agent in Charge Jeff Richards of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG and our law enforcement partners will tirelessly pursue practitioners whose primary purpose is to amass profit instead of provide Medicare-approved services and procedures.”

According to evidence presented at trial, Mr. Shoulders and his conspirators submitted $788,000 in fraudulent claims and received more than $614,000 in reimbursements from Medicare for injecting amniotic fluid – the liquid that surrounds a growing fetus during gestation – into patients’ connective tissue in an off-label attempt to relieve joint pain.

Certain amniotic products have been approved by the U.S. Food and Drug Administration for wound care, but not for pain management. (In fact, the FDA has issued repeated consumer alerts warning that biologics like amniotic fluid “have not been approved for the treatment of any orthopedic condition, such as osteoarthritis, tendonitis, disc disease, tennis elbow, back pain, hip pain, knee pain, neck pain, or shoulder pain,” nor for “chronic pain or fatigue.”) Because amniotic products have not been approved to treat pain, Medicare considers amniotic injections administered to treat pain medically unnecessary and does not reimburse for them. They do reimburse for some – but not all – amniotic injections administered to reduce inflammation of damaged tissue, as in a wound.

Mr. Shoulders primarily used “Cell Genuity,” an amniotic product for which Medicare would not reimburse, neither for wound care nor for pain. Initially, because the product was not covered by insurance, Mr. Shoulders asked patients to pay out of pocket more than $800 per injection. Due to the high cost and questionable efficacy, however, many patients refused.

In August 2020, Mr. Shoulders identified an amniotic product, known as “Fluid Flow,” that he believed he could convince Medicare to reimburse for in certain circumstances. He spoke with a sales rep about Fluid Flow reimbursement rates and billing requirements but did not purchase any Fluid Flow, which was significantly more expensive than Cell Genuity. 

Instead, he continued to inject Cell Genuity into patients but billed the shots to Medicare under Fluid Flow’s unique code, Q4206.  Because they were told insurance would cover the cost of the injections by Shoulders and other conspirators, patients readily consented to the procedure.

The pain clinic profited approximately $1,200 per cc of Cell Genuity they injected. (Had the clinic used Fluid Flow, they would have made only around $400 per cc.) From August to October 2020, the clinic submitted more than 100 bills for Fluid Flow to Medicare and received around $400,000 in reimbursements. Mr. Shoulders then received a cut of those reimbursements totaling over $200,000.   

In November 2020, in an attempt to avoid detection, Mr. Shoulders suddenly halted the scheme after he became concerned that a sudden increase in the volume of billings might attract the attention of investigators. With no repercussions over the ensuing 10 months, Mr. Shoulders re-engaged in the scheme in October 2021 and continued through December 2021.

Mr. Shoulders now faces up to 240 years in federal prison – 20 years per count.

The Department of Health & Human Services’ Office of Inspector General (HHS - OIG) conducted the investigation with the help of the Federal Bureau of Investigation’s Dallas Field Office. Assistant U.S. Attorneys P.J. Meitl and Nancy Larson prosecuted the case.

Three defendants have been sentenced to a combined 21 years in federal prison for their roles in a drug trafficking conspiracy, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.

Brian Daniel Ramirez, 45, Rodney Leon Dunn, 63, and Robby Layne Dunn, 62, were indicted for Conspiracy to Possess with Intent to Distribute a Controlled Substance in August of 2023.  In October of 2023, Mr. Ramirez, Mr. Rodney Dunn, and Mr. Robby Dunn plead guilty to one count each of Conspiracy to possess with intent to distribute methamphetamine.

On January 18, 2024, U.S. District Judge Mark Pittman sentenced Mr. Ramirez to 14 years in federal prison; Mr. Rodney Dunn to 4.5 years in federal prison, and Mr. Robby Dunn to 2.5 years in federal prison.

According to court documents, the investigation began in June of 2023 when Hood County Sheriff’s Office Street Crimes Unit (HSCO SCU) began investigating the methamphetamine trafficking activities of the Brian Ramirez Drug Trafficking Organization (DTO).

HCSO SCU deployed numerous investigative techniques and identified a suspected drug stash location in Granbury, Texas operated by Mr. Ramirez. The investigation resulted in the seizure of approximately 1 kilogram of crystal methamphetamine, approximately 3 ounces of cocaine, and the arrests of Mr. Ramirez, Mr. Robby Dunn, and Mr. Rodney Dunn for their roles in the Ramirez DTO. 

The DEA Fort Worth with the assistance of the Hood County Sheriff’s Office conducted the investigation.  Assistant U.S. Attorney Shawn Smith prosecuted the case. 

 

A Westlake man who owns several businesses, bars and nightclubs in the DFW area who allegedly hasn’t paid taxes since 1992 has been federally charged, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.

Dhanesh Deoraj Ganesh was indicted Wednesday, January 17th on five counts of tax evasion, one count of conspiracy to possess with intent to distribute a controlled substance, and one count of conspiracy to launder monetary instruments. He was arrested on Friday and made his initial appearance before U.S. Magistrate Judge Rebecca Rutherford Monday.   

According to the indictment, Mr. Ganesh, 62, allegedly concealed his ownership in his businesses by using nominee names, including his ex-wife, his brothers, and his sons. Mr. Ganesh did not have bank accounts in his personal name and did not have signatory authority on bank accounts opened in the names of the companies he controlled. Payments from these businesses were collected in check and cash form. The checks were cashed at check-cashing businesses and then used to purchase cashier’s checks in amounts under $3,000.

Mr. Ganesh has not filed a personal or business income tax return since 1992.

The scheme allegedly resulted in approximately $1.6 million in unpaid taxes.

In addition, Mr. Ganesh and others used some of the restaurants and bars to sell cocaine.

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

If convicted, he faces a maximum penalty of 5 years in prison for each of the five counts of tax evasion, 20 years in prison for conspiracy to possess with intent to distribute a controlled substance, and 20 years in prison for conspiracy to launder monetary instruments.

IRS – Criminal Investigations’ Dallas Field Division conducted the investigation.  Assistant U.S. Attorney Mary Walters of the Northern District of Texas is prosecuting the case.

 

An Amarillo drug trafficker was sentenced yesterday to life in prison for trafficking methamphetamine, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.

In September 2023, after five days of trial, a federal jury convicted Mandis Charles Barrow, 45, of one count of conspiracy to distribute or possess with intent to distribute 500 grams or more of methamphetamine, one count of distribution and possession with intent to distribute 500 grams or more of methamphetamine, and one count of possession with intent to distribute 500 grams or more of methamphetamine. He was sentenced Thursday by U.S. District Judge Matthew J. Kacsmaryk.

According to evidence presented at trial, on February 18, 2021 a traffic stop was conducted on a vehicle Mr. Barrow was driving. The officer conducting the traffic stop suspected there may be narcotics inside the vehicle and requested a canine officer. The canine alerted to the odor of narcotics coming from the vehicle. During a search of the vehicle, officers located $15,000 and a baggie of methamphetamine inside the glove box and a shoebox in the trunk that contained approximately 8.8 pounds of methamphetamine. Mr. Barrow was arrested following the search.  While in custody, Mr. Barrows made phone calls to a family member requesting evidence be removed from Barrow's residence.

In October 2022, a search of a residence in Amarillo was conducted and approximately 108 grams of fentanyl, 853 grams of cocaine, and 2,944 grams of methamphetamine were located in the kitchen area.  Mr. Barrow later admitted to dropping off the narcotics at that residence. 

According to evidence presented at trial, during an interview Mr. Barrow admitted to being involved in the distribution of large amounts of controlled substances, including, methamphetamine, cocaine, and pills containing fentanyl.

During sentencing, these facts were discussed at length and Judge Kacsmaryk stated that the life sentence for Mr. Barrow was based on the defendant’s long and violent criminal history starting when the defendant was 18.  The defendant’s first violent conviction, Aggravated Robbery, where the defendant robbed a man at gunpoint and forced the man into the man’s residence where Mandis took by force all of the man’s money (around $46).  The defendant also had a prior conviction for assaulting a man by pulling him from a vehicle and beating him, even when unconscious.  The defendant has two prior drug distribution convictions, one of those federal. Significantly, the Court stated that Mr. Barrow engaged in drug trafficking and violence his “whole adult life.”

The Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorney Anna Marie Bell prosecuted the case.

 

Two men who assaulted an ATF agent and another individual during an undercover operation were sentenced today to a combined 39 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.

Decorian Lynndale Titus, 19, and Damon Gentry, 23, were charged via criminal complaint in May 2023 and indicted in June 2023. Mr. Titus and Mr. Gentry both pleaded guilty in September 2023 to one count each of assaulting certain officers, brandishing a firearm in relation to a crime of violence, and possession of a firearm by a convicted felon. They were sentenced today by U.S. District Judge Reed C. O’Connor to 324 months and 144 months, respectively, in federal prison.

According to court documents, on May 18, 2023, an undercover ATF agent met with Mr. Titus and Mr. Gentry to purchase marijuana and guns. During the meeting, the defendants pulled their guns on the ATF agent and demanded the agent’s firearm and money. Mr. Titus stole the agent’s gun and money and ordered him to lay on the ground and not get up. He also threatened to shoot the other individual.

Mr. Titus and Mr. Gentry ultimately left the agent and the other individual and fled.  As they were fleeing, Mr. Titus pointed his guns (one in each hand) at plain-clothed (but marked) officers outside whereupon agents fired on Mr. Titus.  He was hit, dropped one pistol, and fired a shot.  Mr. Titus was arrested that day; Mr. Gentry got away, but was arrested later.

The Federal Bureau of Investigations, Bureau of Alcohol, Tobacco, Firearms, & Explosives, Texas Rangers, Fort Worth Police Department, and Texas Department of Public Safety conducted the investigation. Assistant U.S. Attorney Shawn Smith prosecuted the case.

 

Three defendants were sentenced today to a combined 35 years in federal prison for their roles in the drug conspiracy that claimed the lives of three teenagers in north Texas, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.

Jason Xavier Villanueva, 23, Robert Alexander Gaitan, 20, and Rafael Soliz, Jr., 23, were indicted in a superseding indictment in March 2023. In June 2023, Mr. Villanueva and Mr. Soliz pleaded guilty to one count each of conspiracy to possess with intent to distribute fentanyl and distribution of fentanyl to a person under 21 years of age. In July 2023, Mr. Gaitan pleaded guilty to conspiracy to possess with the intent to distribute 40 grams or more of fentanyl. Today, U.S. District Judge Ed Kinkeade sentenced Mr. Villanueva to 15 years in federal prison; Mr. Gaitan to 5 years in federal prison; and Mr. Soliz to 15 years in federal prison.

“Precious children in our north Texas community died—and more overdosed and almost died—as a direct result of these defendants’ actions, and I am proud of my dedicated prosecutors for working tirelessly with our law enforcement partners to bring these men to justice,” announced U.S. Attorney Simonton.  “We will not stop until every dealer or trafficker knows that we will prosecute you to the fullest extent of the law if you distribute the deadly drug of fentanyl.”

“I was at today’s sentencing and heard statements from both the defendant’s and the victim’s family and friends.  Nobody won today.  This is what drug trafficking and abuse does.  Lives have been destroyed and tragically some we will never get back,” said DEA Dallas Special Agent in Charge, Eduardo A. Chávez.  “The men and women of the DEA Dallas will continue to relentlessly pursue those who distribute illicit fentanyl, while equally supporting and standing firm with those family members and friends affected by the grip of illicit substance abuse.”

“Justice was served today in these cases,” announced Carrollton Police Department Chief Roberto Arredondo.  “This national crisis is a priority for us; we will not rest until we have rid our great community of this poison, and those responsible for preying upon our citizens are behind bars. The Carrollton Police Department appreciates the hard work of our school resource officers in the Carrollton-Farmers Branch Independent School District and the Lewisville Independent School District. CPD also thanks our partners in law enforcement including the Drug Enforcement Administration’s Dallas Field Office for their tireless work against this national problem.”

In court documents, Mr. Villanueva admitted he distributed more than 200,000 fentanyl pills to north Texas customers over the course of five or six months, at a rate of about 40,000 pills per month. He sold the pills – round blue tablets marked M-30 – to a network of juvenile and adult dealers, including Mr. Gaitan and Mr. Soliz, who went on to sell to friends, classmates, and other customers in Carrollton. He often advertised on Instagram and following the arrest of one of his codefendants in February 2023 posted, “Only thing that’s gonna stop us is feds.” Villanueva was identified during the investigation as being one of the primary sources of counterfeit M30 pills.

At today’s hearing, prosecutors discussed the overdose of several children ages 13 – 17 years of age, including two middle school and one high school student who died after taking the fentanyl pills. The defendants knew the ages of the students they were selling to and knew the pills they were selling contained fentanyl.

Ten individuals have been charged in the drug conspiracy and are tied to at least 12 juvenile overdoses – three of them fatal – in Carrollton and Flower Mound.

The Drug Enforcement Administration’s Dallas Field Office and the Carrollton Police Department conducted the investigation with the assistance of School Resource Officers from the Carrollton – Farmer’s Branch Independent School District and the Lewisville Independent School District. Assistant U.S. Attorneys Rick Calvert and Phelesa Guy are prosecuting the case.

A Mansfield man has been charged with 33-counts of filing fraudulent tax returns, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.

John Anthony Castro, 40, was indicted on thirty-three counts of aiding and assisting in the preparation and presentation of a false and fraudulent return. He made his initial appearance Tuesday before U.S. Magistrate Judge Hal R. Ray, Jr.

“Mr. Castro’s alleged crimes are stunning in their brazenness,” said U.S. Attorney Simonton.  “The Department of Justice will continue to hold people accountable who steal from the federal government’s—and the American public’s—pockets.”

"This is precisely the type of conduct IRS Criminal Investigation and our law enforcement partners are committed to deterring,” said Tammy Tomlins, Special Agent in Charge of the Newark Field Office. “Today’s indictment sends a clear message, you will be held accountable, if you abuse our tax system for your personal financial gain.”

According to the indictment, Mr. Castro owned and operated Castro & Company LLC. a virtual tax preparation business with locations in Orlando, Florida, Mansfield, Texas, and Washington, D.C. Starting in 2016, Mr. Castro devised a scheme to falsely create and submit false tax returns on behalf of unsuspecting taxpayers. Taxpayers would seek out Castro’s assistance in filing personal tax returns and Mr. Castro would promise a significantly higher refund than taxpayers could receive from other prepares and on many occasions offered to split the additional refund with taxpayers. In order to achieve these larger refunds, Mr. Castro generated false deductions without the taxpayer’s knowledge.

In 2018, an undercover agent, posing as a taxpayer, contacted Castro & Company, LLC for assistance. Castro refused to meet in person unless a $5,000 retainer was paid but offered to assist the undercover agent virtually.  During a recorded telephone conversation, Mr. Castro stated that he could project the amount of the tax refund the undercover agent would likely receive from another firm and then compare that figure with the refund that Mr. Castro would obtain.

According to the indictment, an employee of Mr. Castro’s interviewed the agent over the telephone regarding deductions. The employee stated that Mr. Castro would make any decisions regarding what items would be included on the tax filing. The employee did not identify any deductions that would apply to the agent and in the course of the interview, the undercover agent denied any facts that would support deductions. On March 14, 2018, Mr. Castro filed the agent’s tax return claiming $29,339 in fraudulent deductions. The IRS issued a refund of $6,007, Mr. Castro received $2,999 for his services and the agent received the remaining amount of $3,008.  As Castro told the taxpayer, he would have received only a $300 deduction had he used another tax preparer.

Mr. Castro continued in a similar pattern with dozens of other taxpayers, resulting in hundreds of thousands of improperly paid claims. 

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

If convicted on all counts, he faces up to 99 years in federal prison – 3 years per count.

The Internal Revenue Service, Criminal Investigation conducted the investigation. Assistant U.S. Attorney P.J. Meitl is prosecuting the case.

 

A federal grand jury last week indicted a Mansfield, TX man for submitting false inspection reports in exchange for bribe payments, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.

Timothy Peppel, 68 years old, was a federal produce inspector with the United States Department of Agriculture (USDA) Agricultural Marketing Service (AMS). Peppel was responsible for conducting produce inspections and providing inspection reports to companies buying and selling produce. 

According to prosecutors, a wholesale produce company, American Fresh Produce (AFP), began requesting produce inspections from USDA AMS in 2014 in order to rate their produce. AFP used the inspection reports to negotiate a price for the produce they purchased from produce brokers.  Peppel was one of the inspectors who inspected and graded AFP’s produce and created inspection reports.

Shortly after Peppel started performing inspections of AFP produce, Peppel solicited and received weekly bribery payments of $1,000 to $1,500 from the owner of AFP. In exchange for the bribery payments, Peppel agreed to create produce inspection reports that falsely downgraded AFP’s produce, which AFP was able to use to negotiate lower prices for the produce they had purchased.

Peppel has been charged with one count of conspiracy to commit honest services wire fraud and receiving bribe by a public officer; five counts of honest services wire fraud; and one count of receiving bribe by a public official. If convicted, he faces up to five years in prison on the count of conspiracy; 20 years in prison on each count of honest services wire fraud; and 15 years in prison on the count of receiving bribe by a public; official plus restitution.

The FBI Dallas Office and U.S. Department of Agriculture - Office of Inspector General conducted the investigation, and Assistant U.S. Attorneys Marty Basu and Joshua Detzky are prosecuting the case.  Assistant U.S. Attorney Marcus Busch assisted in the investigation of the case.

An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.

Lubbock woman was sentenced Thursday to 30 months in federal prison for concealing PPP Loan Fraud, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.

Hope Leticia Hastey, 51, was charged via criminal information in August 2023 and pleaded guilty to one count of misprision of a felony. Ms. Hastey was sentenced Thursday by U.S. District Judge James Wesley Hendrix, who ordered her to pay $3,545,894.36 in restitution.

According to plea documents, Ms. Hastey founded Radar Supports, LLC, a company that provided certain contract services, including speech and occupational therapy and Radar Foundations, Inc., a non-profit that organized community fundraisers to benefit individuals with intellectual limitations.  Radar Supports employed approximately 10 individuals and Radar Foundations did not employ anyone.

In May 2020, an assumed name certificate was filed for “Radar Supports Construction,” indicating Ms. Hastey as the owner. Radar Supports Construction never provided goods or services of any kind and never filed a tax return.

Ms. Hastey employed Andrew Travis Johnson, 59, —an accomplice in a separate case—to provide bookkeeping services for her business. During the Covid-10 pandemic, Mr. Johnson engaged in a bank fraud scheme to obtain loans for Radar Supports, Radar Supports Construction, and Radar Foundations through the Paycheck Protection Program (PPP).  He obtained the loans by falsely inflating payroll data related to Radar Supports and Radar Foundations and fabricating payroll data for Radar Supports Construction.

Ms. Hastey signed the loan documents, which included certifications that the loan proceeds would be used for payroll costs and other business-related expenditures. Hastey failed to notify authorities of the fraud. Instead, to make it appear as though the loan proceeds were used for payroll costs, Hastey wrote a check to a colleague who worked for Radar Supports. The check was not intended for the colleague and was never given to the individual. Ms. Hastey deposited the check into another bank account she controlled.

In total, Ms. Hastey and Mr. Johnson applied for five PPP loans and received nearly $3.5 million. Ms. Hastey spent the money on personal expenses, including heavy equipment to help family members start a new business; a cash purchase of a new home; home renovations; multiple vehicles; vacations; clothing; cosmetic and dental procedures; college tuition; and expenses for a wedding. All five loans were forgiven.  

According to court documents in Mr. Johnson’s case, he pleaded guilty to three counts of bank fraud, one count of identity theft and one count of engaging in monetary transactions in property derived from specified unlawful activity in March 2023. He was sentenced in August 2023 to 180 months in federal prison.

The Federal Bureau of Investigation, Internal Revenue Service - Criminal Investigation Division, and Homeland Security Investigations conducted the investigation.  Assistant U.S. Attorney Ann Howey prosecuted the case. Assistant U.S. Attorney Saurabh Sharad handled the forfeiture.

A Fort Worth, Texas man who recorded himself sexually abusing a minor was sentenced yesterday to 60 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.

Michael Downs, 71, a retired Cook Children’s Hospital chaplain, was charged via criminal complaint in March 2023 and pleaded guilty in July 2023 to two counts of sexual exploitation of children. He was sentenced Thursday by U.S. District Judge Mark Pittman, who also ordered a lifetime of supervised release.

“This is an incredibly important case involving shocking and abhorrent conduct,” said U.S. Attorney Simonton.  “One of our most veteran prosecutors worked on this matter along with our partners at Homeland Security Investigations and the Fort Worth Police Department to ensure that this defendant was brought to justice.  Let this be a message to others who seek to prey on children in this way: We will do everything in our power to incapacitate you by locking you away in prison for as long as possible.” 

“While preying on the vulnerability of our youth, those in positions of public trust should expect the most stern accountability for their actions,” said HSI Dallas Special Agent in Charge Lester R. Hayes Jr. “Due to our strong partnership with the Fort Worth Police Department, we were again successful in prosecuting another sexual predator and preventing the victimization of more children.”

According to plea papers, the investigation began on January 22, 2023 after a seventeen-year-old minor told her aunt she had been sexually abused by Mr. Downs. The minor female said Mr. Downs recorded the sexual abuse on an iPad.

Mr. Downs’ wife provided law enforcement with several electronic devices from their residence. Law enforcement located a hard drive that contained numerous videos and photos of Mr. Downs engaging in sexually explicit conduct with the minor.

Homeland Security Investigations and the Fort Worth Police Department conducted the investigation. Assistant U.S. Attorney Aisha Saleem prosecuted the case.

Lubbock man who committed a burglary of a Lubbock Federal Firearms Licensee (FFL) sentenced to 10 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.

David Lara, 57, was charged via indictment in June 2023 and pleaded guilty to theft of firearms from a FFL in August 2023. Mr. Lara was sentenced today to 120 months in federal prison before U.S. District Judge James Wesley Hendrix. 

According to court documents, during the summer of 2020 there were numerous burglaries of FFLs in and around Lubbock. On June, 28, 2020, Lara and another individual entered Gebo’s Distributing Inc. by prying back the sheet metal on the side of the building and gained access to the building through a storage area attached to the building.

Once inside the building, the individuals began breaking out the glass displays with a sledge hammer, removed 37 firearms from the cases and placed them in a bag. The bag containing the firearms was eventually dropped while they were fleeing the scene, along with gloves and ski masks they wore during the burglary. The gloves were recovered by the Lubbock Police Department and submitted for forensic analysis.  DNA results were a match for Lara. 

When interviewed, Lara admitted to committing the burglary.

The Bureau of Alcohol, Tobacco, Firearms, & Explosives, with assistance from the Lubbock Police Department conducted the investigation. Assistant U.S. Attorney Stephen Rancourt prosecuted the case.

 

Two more defendants have been charged for scamming Chinese investors out of more than $26 million, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.

Stephen Wall, 65, and Saskya Bedoya, 42, were charged in a superseding indictment filed this week with one count of conspiracy to commit wire fraud and one count of securities fraud. They are scheduled to make their initial appearances before U.S. Magistrate Judge Rebecca Rutherford on December 22, 2023.

According to the indictment, Mr. Wall and Ms. Bedoya conspired with Timothy Lynch Barton to market real estate investment opportunities in Texas to Chinese investors.

During presentations – which highlighted Mr. Barton’s supposed ties to U.S. politicians – Mr. Barton and Mr. Wall allegedly claimed that the properties in question were located in sought-after neighborhoods in the Dallas Fort Worth Metroplex. Mr. Wall was introduced as a builder who would purchase lots to build on to sell to future home buyers.

Investors were promised annual interest payments for two years, followed by the return of their initial investment at the end of the second year. It was alleged that the investors would contribute 80 percent of the funds necessary for the project, and Mr. Barton and Mr. Wall would contribute the remaining 20 percent.  It was also represented that no commissions would be paid out of investor funds.

In loan agreements signed by the investors, the cost of each property was inflated by as much as 195 percent, and in some instances, never actually purchased the property.  Early investors were allegedly paid interest payments with investor funds from later projects. 

Contrary to loan agreements, the defendants allegedly paid commissions out of investors’ funds, and even funneled investors’ money into unrelated projects. Still other funds were used to pay consultants or even to pay an unrelated company’s AmEx bill.  According to the indictment, investors lost more than $26,000,000 to the scheme.

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

If convicted, each defendant faces up to 20 years in federal prison for conspiracy to commit wire fraud and up to 20 years in federal prison for securities fraud.

Defendant, Mark Adams, 61, previously pled guilty in September 2022 to conspiracy to commit wire fraud in connection with the scheme.  Additionally, codefendant, Haoqiang Fu a/k/a Michael Fu, 49, pled guilty in October 2022 to the sale of unregistered securities.  Both are scheduled to be sentenced on February 21, 2024, and face up to five years in federal prison. 

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

Fort Worth, Texas-based commercial roofing contractor Empire Roofing, Inc. and its nationwide network of roofing and disposal companies agreed to pay $9 million to resolve allegations that they violated the False Claims Act (FCA) by falsely certifying that eight of their affiliates were eligible to receive loans through the Small Business Administration’s (SBA) Paycheck Protection Program (PPP), announced U.S. Attorney for the Northern District of Texas Leigha Simonton. 

Congress created the PPP in March 2020, as part of the Coronavirus Aid, Relief and Economic Security (CARES) Act to provide emergency loans to small businesses suffering economic hardship due to the COVID-19 pandemic.  Whether an applicant qualified for a PPP loan as a small business depended on various factors, including the number of employees of both the applicant and corporate affiliates.  Subject to limited exceptions, only businesses that employed 500 or fewer employees were eligible to receive a PPP loan.  When applying for PPP loans and loan forgiveness, borrowers were required to certify the truthfulness and accuracy of all information provided in their loan applications.

Empire Roofing, Inc., along with affiliated businesses within its nationwide network, applied for and received a total of $6,705,700 in PPP loans.  The loans were all later forgiven in full.  Each applicant certified that they were a small business with fewer than 500 employees.  Under applicable SBA rules, however, applicants were required to include employees of all affiliated companies when determining eligibility.  The government contends that the Empire Roofing network of affiliated companies employed more than 500 employees and therefore that none of Empire Roofing’s affiliates were eligible to receive PPP loans or loan forgiveness under the CARES Act.

“PPP loans were intended to help small businesses during the Covid-19 pandemic,” said United States Attorney Leigha Simonton.  “Our office invests significant time and resources to hold accountable those who obtained PPP funds for which they were not eligible and will continue to do so going forward.”

“The settlement in this matter demonstrates the excellent results achieved through the combined efforts of SBA and the Department of Justice to uncover and forcefully respond to PPP misconduct,” said SBA General Counsel Therese Meers.  “The federal government is strongly committed to identifying and aggressively pursuing any instances of fraud or misconduct within the Paycheck Protection Program.”

The settlement resolved a lawsuit filed under the qui tam or whistleblower provision of the FCA, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery.  The qui tam lawsuit is captioned United States ex rel. Sidesolve v. Empire Roofing, Inc., et al., No. No. 3:22-CV-2060-B (N.D. Tex.).  The relator, Sidesolve, Inc., will receive a $1 million share as part of the settlement.  

This matter was handled by Assistant United States Attorneys William Admussen and Andrew Robbins, with assistance from Sandra Mazzoni of the SBA.  The civil claims settled by this FCA agreement are allegations only; there has been no determination of civil liability. 

 

Leader of drug trafficking organization was sentenced to 30 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.

Alonzo Smith, 29, was charged in May 2023 via criminal complaint. He pleaded guilty in July to conspiracy to possess of a controlled substance with intent to distribute and was sentenced Thursday by U.S. District Judge Mark Pittman. 

“Violent gangs that flood our neighborhoods with illicit drugs are a true threat to public safety,“ said Homeland Security Investigations (HSI) Dallas Special Agent in Charge Lester R. Hayes, Jr. “ The lengthy sentence imposed on this defendant highlights our commitment to disrupting and dismantling these transnational criminal organizations seeking to exploit our communities for financial gain.”      

According to court documents, Mr. Smith and others – most heavily armed 5x2 Hoova Crip gang members - were responsible for operating multiple drug houses in the Fort Worth area. The residences were used solely to store and distribute large amounts of methamphetamine, cocaine and heroin. During a search warrant at one of the residences, law enforcement located 800 grams of methamphetamine, 188 grams of cocaine, 496 grams of black tar heroin and 300 grams of fentanyl.

Homeland Security Investigations and the Fort Worth Police Department conducted the investigation. Assistant U.S. Attorney Shawn Smith prosecuted the case.

An Aubrey woman was convicted at trial Thursday of defrauding elderly victims in romance schemes, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.

After 7 days of trial and 10 hours of deliberation, a jury convicted Ijeoma Okoro, 33, of one count of conspiracy to commit wire fraud and one count of conspiracy to commit money laundering.

“I am so proud of the federal agents and our office’s prosecutors in this case, who worked diligently to hold the defendants accountable for conspiring to defraud these innocent victims of money and then conspiring to launder that money,” said U.S. Attorney Simonton.  “Such schemes are especially despicable because the perpetrators prey on the emotions of the people they are victimizing.  Our U.S. Attorney’s Office will continue to aggressively seek to bring such criminals to justice.”

“Ms. Okoro and her coconspirators stole money from retirement accounts, pensions and other sources as part of several romance scams,” said Christopher J. Altemus Jr., special agent in charge of the IRS Criminal Investigation’s Dallas Field Office. “These individuals preyed on unsuspecting women and men, gaining their trust and confidence, in order to ultimately empty their bank accounts. This verdict should send a clear message to those who would consider conducting or participating in these types of fraudulent financial schemes.”

According to evidence presented at trial, the fraudsters assumed fake names and trolled dating sites like Match.com and Zoosk, searching for targets.

Once the fraudsters had ingratiated themselves to their often divorced or widowed victims with promises of long-term commitment, the fraudsters concocted elaborate stories about why they needed financial assistance.  A common story was that the fraudster had to travel overseas for work and was unable to access a bank account.  To solve a work-related crisis or pay for urgent medical treatment for a family member, the fraudster asked the victims to send money to cover the expenses, promising to repay them in the near future. The trusting victims sent thousands of dollars to bank accounts opened by the defendant and her coconspirators in the Northern District of Texas.  The defendant then distributed the fraudulent proceeds to coconspirators and claimed a cut for herself. 

The defendant now faces up to 20 years in federal prison on the wire fraud conspiracy count, up to 10 years in federal prison on the money laundering conspiracy count, and an order to repay the victims the losses that she and her coconspirators caused the victims.

IRS – Criminal Investigation led the investigation with assistance from the Federal Bureau of Investigation’s Frisco Field Office, Homeland Security Investigations, and Department of Labor Office of Inspector General. Assistant U.S. Attorneys Mary Walters, Jenna Rudoff and Elyse Lyons prosecuted the case.

Fort Worth man who trafficked firearms from Texas to California to convicted felons was sentenced today to 9 years in prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.

Justin Douangmala, 41, was charged via criminal complaint in July and pleaded guilty in August to conspiracy to traffick in firearms, in violation of 18 U.S.C. § 933(a)(3). He was sentenced today to 9 years in federal prison.

Mr. Douangmala is among the first defendants in the Northern District of Texas to plead guilty to an offense outlined in the Bipartisan Safer Communities Act, signed into law by President Biden in June 2022.

According to court documents, during a search warrant at Mr. Douangmala’s residence several firearms and drugs were located in his Fort Worth residence.  Cell phone conversations further revealed Mr. Douangmala and others discussing silencers and firearms. In one of those messages, an individual asked Mr. Douangmala to send him pictures of firearms he had access to (as seen in the image below).  Mr. Douangmala admitted to sending multiple firearms from Texas to California to a convicted felon. At the sentencing hearing, it was shown that Mr. Douangmala was also receiving large quantities of drugs from this individual in California that he was trafficking the firearms to in exchange.   

The Bureau of Alcohol, Tobacco, Firearms, & Explosives’ Dallas Field Division and Fort Worth Police Department conducted the investigation. Assistant U.S. Attorney Levi Thomas prosecuted the case.

A Kaufman man who distributed methamphetamine near a drug free zone, Kaufman High School, was sentenced Monday to 97 months in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.

Kenneth Russell Barr, Jr., 55, pleaded guilty in May to possession with intent to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine.  The offense occurred within 1000 feet of the real property comprising Kaufman High School, a public secondary school. He was sentenced Monday by U.S. District Judge Sam A. Lindsay.

According to plea papers, law enforcement seized methamphetamine the defendant delivered during the weeks of May 2, and May 16, 2022.   As a result of these seizures officers executed a search warrant at Barr’s residence. During the search officers located approximately 353 grams of methamphetamine.  Multiple firearms were found at the residence as a result of the search (as seen in the Government’s Detention Hearing Exhibit below). As part of his guilty plea, Barr also admitted he was a convicted felon and that he knew he was not supposed to possess any firearms.  Barr further admitted the place he distributed methamphetamine from is within 1000 feet of Kaufman High School.

The Texas Department of Public Safety investigated the case with assistance from the Kaufman County Sheriff’s Department and the Kaufman Police Department. Assistant United States Attorney George Leal prosecuted the case. 

ADCO Industries (a/k/a Dallco Marketing, Inc.), a Dallas-based importer of industrial products, along with two Chinese companies and two individuals, has agreed to pay $2.5 million to resolve allegations that it violated the False Claims Act by failing to pay customs duties on imports from China, announced U.S. Attorney for the Northern District of Texas Leigha Simonton. 

Customs laws require importers to pay duties on the price paid for imported goods.  This settlement resolves allegations that ADCO, its owner Raymond E. Davis, customs broker Calvin Chang, and Chinese companies Xiamen Atlantis MFC Co., Ltd. and Xiamen Taft Medical Co., Ltd. conspired to underreport the value of imported goods delivered to ADCO in the United States.

Specifically, the government alleged that for customs valuation purposes, falsified invoices were created and submitted to U.S. Customs and Border Protection (CBP) containing false, lower values for the goods ADCO was receiving from China.  It contended that a second set of correct invoices—invoices that were not submitted to CBP—were then used to ensure that ADCO paid its Chinese suppliers for the actual value of the goods.  The government further alleged that this false invoicing practice resulted in the undervaluation of goods upon entry into the United States, which resulted in the loss of revenue in the form of customs duties and other fees.

“Customs laws are an important component of national security and, among other things, protect the public and American businesses from unfair competition,” said U.S. Attorney Leigha Simonton.  “This office will continue to aggressively investigate and hold accountable anyone it believes has tried to cheat the government and the public at large through the manipulation of customs duties.”

“CBP’s Consumer Products and Mass Merchandising Center of Excellence and Expertise worked in collaboration with the U.S. Attorney’s Office to identify and review over 1,000 import entry lines entered by ADCO, as relevant to the underreporting allegations,” said Director Gregory Alvarez of the CBP Atlanta Field Office.  “CBP is proud of the investigative work done by its experienced Import Specialists on the case and will continue to work collaboratively with inter-agency stakeholders to safeguard our nation’s economic security.”

The settlement resolved a lawsuit filed under the qui tam or whistleblower provision of the FCA, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery.  The qui tam lawsuit is captioned United States ex rel. Reznicek et al. v. Dallco Marketing, Inc. et al., No. 3:22-CV-332-L (N.D. Tex.).  The relators (whistleblowers), Donald Reznicek and Collen McFarland, will receive a $500,000 share as part of the settlement.

The matter was handled by Assistant United States Attorneys William Admussen and Brian Stoltz.  The civil claims settled by the settlement agreement are allegations only; there has been no determination of civil liability.

 

A Plano man pleaded guilty Thursday to orchestrating a fraudulent scheme to obtain approximately $1.7 million from Medicare, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.

Damon Heath Roberts, 55, was charged via criminal information in September 2023 and pleaded guilty to one count of conspiracy to solicit or receive kickbacks for referrals to a federal health care program. He will be sentenced March 28, 2024 and faces a maximum penalty of 5 years in federal prison.

According to court documents, Roberts, owner of JDS Labs, admitted that he and others, including medical providers and others with access to patient information, began sharing Medicare beneficiary information so that JDS Labs could bill Medicare for over-the-counter COVID-19 tests. Roberts, in exchange for the patient information, would pay a kickback based on the reimbursement from Medicare to the medical providers or other individuals.

Roberts tried to conceal the kickback payments through the use of passthrough arrangements and cash payments.

Roberts submitted nearly $4 million in claims for the over-the-counter COVID-19 tests and received approximately $1.7 million in reimbursement for the claims.  In addition, Roberts paid approximately $149,066 in bribes and kickbacks.

The Federal Bureau of Investigation's Dallas Field Office, U.S. Department of Health & Human Services’ Office of Inspector General, and the Texas Office of the Attorney General – Medicaid Fraud Control Unit – DFW are investigating the case.  Assistant U.S. Attorney Renee Hunter is prosecuting the case. 

 

A violent Amarillo fentanyl distributor has been sentenced to 20 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton. 

Johnny Evrick Johnson, Jr., 30, was indicted in December 2022 and pleaded guilty in June 2023 to distribution and possession with intent to distribute fentanyl. Johnson was sentenced Thursday by U.S. District Judge Matthew J. Kacsmaryk to 240 months in federal prison, an upward variance. At sentencing, the court discussed Johnson’s use of multiple “trap houses” and the fact that Johnson provided several of his coconspirators with firearms to engage in drug trafficking and other violent acts, including robberies. The court also discussed evidence that linked Johnson to two armed robberies that occurred in July 2019.

According to court documents, on June 8, 2022, Johnson agreed to sell an undercover officer 100 fentanyl pills. On June 10, 2022, Johnson meet with the undercover officer in a parking lot and distributed the fentanyl pills. This quantity of fentanyl is only consistent with distribution.

The Federal Bureau of Investigation conducted the investigation with assistance from the Drug Enforcement Administration, Amarillo Police Department, and several state and local partners. Assistant U.S. Attorney Sean Long prosecuted the case.

 

A Tulsa, Oklahoma man who submitted fraudulent insurance claims for COVID-19 testing, resulting in a more than $7 million loss to insurers was sentenced Wednesday to 54 months in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.

William Paul Gray, 50,  was charged via criminal information in March and pleaded guilty to Conspiracy to Commit Health Care Fraud.  He was sentenced by U.S. District Judge Brantley Starr.  Mr. Gray was also ordered to pay over $7 million dollars in restitution. 

According to plea papers, Mr. Gray admitted that he and his coconspirators accessed private patient information – including names, dates of birth, and insurance subscriber numbers – by accessing confidential electronic medical records to obtain large amounts of patient information at once.

They then used the patient information to submit claims to insurance providers – including Blue Cross Blue Shield, Cigna, United Healthcare, Aetna, Humana, and Molina Health Care – for COVID-19 testing that was never performed. (The patients had not requested COVID-19 testing, nor were they aware their information was being used to submit claims.)

Mr. Gray admitted that the “labs” at which the coconspirators claimed the testing occurred, including TC Diagnostics, ME Diagnostics, and PHR Diagnostics, were, in fact, shell entities that never operated as labs.  Collectively, these three entities submitted approximately $30 million in claims and were paid more than $7 million in reimbursements for fake testing.

Also charged in the scheme are Connie Jo Clampitt, 52,  Terrance Barnard, 40, and Don Hogg, 37. Clampitt, Hogg and Bernard have each pled guilty and are pending sentencing.

The Dallas Regional Office of the United States Department of Labor – Employee Benefits Security Administration,  the Dallas Office of the Department of Labor – Office of Inspector General, the Texas Department of Insurance Fraud Unit's Fort Worth Field Office, and the Federal Bureau of Investigation's Dallas Field Office conducted the investigation. Assistant U.S. Attorney Renee Hunter is prosecuted the case.  Assistant U.S. Attorney Dimitri Rocha handled the forfeiture.

For more information about the Justice Department’s response to wrongdoing connected to the COVID-19 pandemic, visit  https://www.justice.gov/coronavirus.

 

A Mansfield woman pleaded guilty today to a $3.7 million wire fraud scheme, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.

Tanisha Adderley, 51, was charged via criminal information in September. She pleaded guilty to wire fraud before U.S. Magistrate Judge Irma Carrillo Ramirez.

“We are very proud of the work our Secret Service partners did in this investigation,” said U.S. Attorney Simonton.  “No company should face the scenario that this one did, in which a trusted employee steals millions of dollars from its accounts.  The Justice Department will not tolerate such breaches of trust.”

“The Secret Service has a long tradition of investigating those who aim to exploit our financial systems,” said Christina Foley, Acting Special Agent in Charge of the U.S. Secret Service’s Dallas Field Office. “Working together with our partners in the U.S. Attorney’s office, we were able to put an end to this fraud scheme and ensure that those involved will be brought to justice.”

According to court documents, Ms. Adderley worked for a health and human services technology solutions company that recovered fees paid by their clients and remitted refunds to them via wires from their funds recovery bank account. Ms. Adderley had access to the funds recovery bank account and was responsible for obtaining approvals and processing fee refunds.

Over the course of five years, from 2019 to 2023, Ms. Adderley prepared false approvals and processed wire payments to non-vendor business bank accounts that were controlled by Ms. Adderley.

Ms. Adderley fraudulently obtained $3.7 million in company funds.

She now faces up to 20 years in federal prison. Her sentencing date is slated for May 6, 2024.

The United States Secret Service Dallas Field Office conducted the investigation. Assistant U.S. Attorney Nashonme Johnson is prosecuting the case.

Two individuals were charged with submitting fraudulent claims for corticosteroid injections and other services that were not performed and unlawfully distributing hydrocodone, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.

Drs. Desi Barroga, 51, and Deno Barroga, 51, were indicted on November 14th on one count each of conspiracy to commit healthcare fraud, five counts each of healthcare fraud, and one count each of unlawful distribution of a controlled substance.  The defendants were arrested November 16th, and made their initial appearances Friday morning. 

According to court documents, the defendants operated a pain management clinic in Dallas where patients received prescriptions for high doses of hydrocodone, oxycodone, and morphine.  Patients submitted to a short office visit each month and would receive their prescriptions.  As part of those monthly visits, the defendants would submit fraudulent claims to the patients’ insurance companies representing that the patients received dozens of corticosteroid injections, when in fact, the patients received few injections or none. The doctors would place a needle on the patient’s body without actually piercing the skin to mimic an injection. If patients actually received any injections they would generally receive only a small amount. In many instances the defendants falsely represented that they provided over eighty injections to the patient on a single date of service. Fake medical records were also created to falsely reflect that injections were performed.

The doctors billed health care benefit programs over $50 million and were paid approximately $12 million for these fraudulent services.

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

If convicted, they face up to up to ten years in federal prison for each count of health care fraud and conspiracy to commit health care fraud. They face up to twenty years for the unlawful distribution of a controlled substance counts. They will also be required to forfeit any proceeds or property traceable to the commission of the offenses of which they’re convicted.

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

 

A Dallas man who carjacked a woman at gunpoint was sentenced last week to 15 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.

Randy Hordge, 22, pleaded guilty in January 2023 to carjacking. He was sentenced Friday by U.S. District Judge Sam A. Lindsay. 

“This is another example of the ATF’s and our U.S. Attorney’s Office’s commitment to aggressively pursuing those who commit violent crimes in Dallas,” said U.S. Attorney Simonton.  “Reducing violent crime is not enough—we will not rest as long as any citizen is victimized in this way.  I am proud that this case serves as an example of that commitment.”

“ATF remains vigilant and steadfast in our fight against violent crime in North Texas. ATF is grateful to the United States Attorney’s Office and our law enforcement partners who work tirelessly to pursue the worst of the worst lawbreakers who commit these heinous crimes. Mr. Hordge now has 15 years to think about and regret his actions,” said ATF Special Agent in Charge Jeffrey C. Boshek II.

According to plea papers, on October 7, 2020 Mr. Hordge – two hours after committing another armed carjacking where he pulled a victim out of her vehicle by her hair – pointed a firearm at a female in a residential driveway and forced her into her car. Mr. Hordge drove off with the individual in the car begging for her life. Mr. Hordge eventually pulled the car over and told the individual that she had five seconds to run or that she would be shot.

The carjacking was reported to police and Mr. Hordge was later arrested and identified.

The Bureau of Alcohol, Tobacco, Firearms & Explosives’ Dallas Field Division conducted the investigation. Assistant U.S. Attorney Gary Tromblay prosecuted the case.

A meth trafficker was sentenced Thursday to 200 months in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.

Levi Chamberlin Hardcastle, a 35-year-old Rockwall, Texas man, pleaded guilty in February to conspiracy to possess with intent to distribute and to distribute 50 grams or more of methamphetamine. He was sentenced Thursday by U.S. District Judge Jane Boyle.

Mr. Hardcastle and eight other individuals, all tied to methamphetamine trafficking, were charged in an indictment with an array of federal crimes, primarily distribution of methamphetamine, unlawful possession of firearms, and conspiracy, in April 2022.

In plea papers, Mr. Hardcastle admitted that he delivered a total of 1,494.6 grams methamphetamine to an undercover officer on three separate occasions, the methamphetamine had a wholesale value of $10,500.00.

In a court hearing, Mr. Hardcastle admitted to being a member of the Peckerwoods, a white supremacist gang. 

Additional defendants include:

 •       Stephen Scribner plead guilty to conspiracy to possess with intent to distribute a schedule II controlled substance and was sentenced to 180 months

•        Alexis Nicole Pacheco plead guilty to conspiracy to possess with intent to distribute a schedule II controlled substance and was sentenced to 200 months

•        Ruby Pauline Anderton plead guilty to illegal receipt of a firearm and was sentenced to 48 months

•        Sandra Marie Hernandez-Pacheco plead guilty to possession of a controlled substance with intent to distribute and was sentenced to 168 months

•        Robert James McKnight plead guilty to possession of a controlled substance with intent to distribute and was sentenced to 14 months

•        David Michael Ford plead guilty to possession of a controlled substance with intent to distribute and was sentenced to 57 months

•        Mayo Mena plead guilty to possession of a controlled substance with intent to distribute and was sentenced to 7 months

 One defendant, Martin Talaver-Sanchez is pending sentencing. 

The Texas Department of Public Safety conducted the investigation. Assistant U.S. Attorney George Leal prosecuted the Northern District of Texas case.

 

Two women who purchased firearms for a member of a Mexican drug cartel have been sentenced to a combined 18 months in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.

Cassandra Gonzalez, 51, and Imajah Tierra Cervantes, her 29-year-old daughter, were indicted in March. Ms. Gonzales pleaded guilty in June to false statements during the purchase of a firearm and was sentenced in October to 6 months in federal prison. Ms. Cervantes pleaded guilty in July to straw purchasing of a firearm and was sentenced today to 12 months and one day in prison.

Ms. Cervantes is among the first defendants in the Northern District of Texas to plead guilty to an offense outlined in the Bipartisan Safer Communities Act, signed into law by President Biden in June 2022.

According to plea papers, Ms. Gonzalez attempted to purchase a rifle from a federally firearm license (FFL) dealer in Lubbock, Texas on Dec. 30, 2022. On ATF Form 4473, Ms. Gonzalez certified that she was purchasing the firearm for herself and stated that she resided in Garland, Texas – an address that did not match her actual current address in Lubbock.

ATF agents contacted the FFL and notified them of the address issue. They learned that Ms. Gonzalez planned to return to the store on Jan. 4, 2023, to complete the transaction.

On that date, agents observed Ms. Gonzalez and Ms. Cervantes enter the FFL. Ms. Gonzalez paid for the firearm and Ms. Cervantes carried it out of the store. Agents intercepted the women, took custody of the rifle, and separated them for questioning.

Ms. Gonzalez admitted that the address she used on Form 4473 was not correct, but initially maintained that she purchased the rifle for herself.

Ms. Cervantes, however, told agents that a Mexican man living in Dallas provided her with the money to purchase the rifle, and said that she and her mother were going to receive $2,000 for purchasing the firearm and delivering it to the man, who she knew was affiliated with a Mexican drug cartel. She admitted that she’d delivered a gun to him before and that she knew the man intended to use the firearm in furtherance of a drug trafficking crime.

Confronted with Ms. Cervantes’ statements, Ms. Gonzalez admitted that she lied on the form, knowing full well that she intended to purchase the firearm not for herself, but on behalf of another person.

The Bureau of Alcohol, Tobacco, Firearms, & Explosives’ Dallas Field Division – Lubbock Resident Agency conducted the investigation. Assistant U.S. Attorney Matthew McLeod prosecuted the case.

A Fabens, Texas woman who was responsible for a car crash that killed a Mexican citizen she was transporting within the U.S. illegally was sentenced today to 16 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.

In July, Raquel Delgado Chavez, 39, pleaded guilty to transportation of an illegal alien resulting in death. She was sentenced today before U.S. District Judge James Wesley Hendrix.

According to court documents, on November 25, 2022 a Texas Department of Public Safety trooper responded to a single-vehicle rollover crash in Lynn County. A Mexican citizen was found deceased at the scene.  A medical examiner determined the individual died after being ejected from the vehicle during the rollover accident. He had blunt force injuries of the head, neck, torso, and extremities, as well as multiple rib fractures.

On November 26, 2022, the Lynn County Sheriff's Office received a 911 call regarding two individuals walking on US 380. A deputy responded and found a Hispanic male and Ms. Chavez with injuries, they were suspected of being involved in the rollover crash and were transported to the Lynn County Hospital.

Ms. Chavez was interviewed and admitted that she called a Mexican phone number and was given directions to the location of a truck in El Paso. Ms. Chavez said when she arrived at the location of the truck, the passengers were already inside. She did not know the passengers, but knew she was supposed to drive them to Dallas. She also admitted she knew the passengers were illegal aliens.

Ms. Chavez was driving the truck and moved over on the highway to let a vehicle pass her, then the vehicle flipped. She said she and the other passengers fled the vehicle. Ms. Chavez said she ran because she was scared and that she saw a man pinned under the vehicle.

This investigation was conducted by Homeland Security Investigations, Texas Department of Public Safety (Highway Patrol and Texas Rangers), and Lynn County Sheriff’s Office. Assistant U.S. Attorney Ryan Redd prosecuted this case.

Two individuals have been charged with making threats against federal judges in the Northern District of Texas, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.

First, Alice Marie Pence, 67, of Port Charlotte, Florida, was charged with transmitting a threatening communication in interstate commerce and with intending to influence a federal official by threat.  According to her indictment, Ms. Pence made a phone call in which she threatened to kill a U.S. District Judge with intent to impede, intimidate, and interfere with the performance of his official duties.

Second, Daniel Ray Garcia, 44, currently in Texas state prison in Midway, Texas, was charged with two counts of mailing a threatening communication.  According to his indictment, Mr. Garcia mailed a letter threatening to kill or injure a different U.S. District Judge.

Ms. Pence is scheduled to make her initial appearance before U.S. Magistrate Judge Renee Harris Toliver on Wednesday, November 22, 2023, and Mr. Garcia made his initial appearance before U.S. Magistrate Judge Lee Ann Reno on Thursday, November 9, 2023.

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

If convicted, Ms. Pence faces up to 15 years in federal prison, and Mr. Garcia faces up to 20 years in federal prison.

The U.S. Marshals Service conducted the investigation.  Assistant U.S. Attorney Matthew Weybrecht is prosecuting both cases.