Southern District of Texas

HOUSTON – Two naturalized U.S. citizens from Lebanon residing in Houston have been sentenced for their roles in large scale organized retail crime schemes, announced U.S. Attorney Alamdar S. Hamdani.

Yasser Saleh Ouwad, 52, and his brother - Bilal Saleh Awad, 50, entered their guilty pleas Oct. 12, 2021 and Oct. 30, 2019, respectively, to conspiracy to transport stolen merchandise.

U.S. District Judge Randy Crane has now ordered Ouwad to serve 41 months in federal prison to be immediately followed by three years of supervised release. In addition to his prison term, he was ordered to forfeit over $260,000 from bank accounts representing the proceeds of the sale of the stolen merchandise. He must also pay a money judgment entered against him in the amount of $4,665,860 and restitution of $109,742 due to CVS Health and Walgreens. 

“The shifting predominance to online retailers drives the market for stolen goods at the expense of consumer safety and legitimate merchants,” said Hamdani. “Stolen over the counter medications and health products are often sold for a fraction of the retail price online but can be expired or subject to tampering. These schemes cause millions of dollars in losses to U.S. retailers by hiking up prices and creating an unsafe e-commerce market for consumers.”

“The transnational criminal organization these two brothers led was responsible for the theft of more than $30 million in retail goods,” said Special Agent in Charge Mark Dawson of Homeland Security Investigations (HSI). “Organized retail crime on this scale results in consumers having to pay higher prices and can force businesses to close that provide essential goods and services to the community. HSI Houston will continue to work tirelessly alongside our law enforcement partners to dismantle these organized theft groups and restore order to our communities.”

“The Food and Drug Administration (FDA) protects consumers and patients by ensuring the medical products they use, whether they are by prescription or over-the-counter, are safe and effective. Selling stolen medical products puts all consumers’ health at risk,” said Special Agent in Charge Charles L. Grinstead, FDA - Office of Criminal Investigations (OCI) Kansas City Field Office. “We will continue to work to protect the health of U.S. consumers and patients.” 

From June 2015 to March 2018, Ouwad and Awad engaged in high-level fencing operations involving multi-million-dollar, multi-state level criminal organizations. The brothers purchased stolen over-the-counter (OTC) medicine, diabetic test strips and health and beauty supplies for re-packaging and shipping.

This criminal enterprise also employed “boosters,” primarily undocumented aliens from Central America, to steal OTC medication from large retailers around the United States. Boosters would then ship the stolen products back to Ouwad and Awad, who resold the stolen merchandise to third parties for a profit.

Ouwad owned and operated GPS Wholesale Inc. which he ran from his warehouse in Houston where he would receive the stolen products. Ouwad and his associates would then remove anti-theft stickers and security labels, re-package them into pallets and ship the merchandise to wholesale companies in the New Jersey area. 

Awad ran a similar operation but would receive stolen merchandise at a CubeSmart Self Storage location in Houston. Awad also removed anti-theft labels and re-packaged the stolen OTC merchandise at his residence before shipping the product to a wholesale company in New York.

Ouwad and Awads’ criminal enterprises resulted in over $13 million in losses to retailers between both charged schemes. 

Awad was previously sentenced on Sept. 5 by U.S. District Judge David Hittner to 41 months in prison followed by three years of supervised release. Additionally, he was ordered to pay restitution in the amount of $322,550 to CVS Health and Walgreens. Awad also had a money judgment of $4,426,942 entered against him representing the illegal proceeds he received during the conspiracy. Awad must also forfeit a bank account with a balance of more than $460,000 and over $6,000 in stolen products law enforcement seized. In handing down the sentence, Judge Hittner noted that Awad managed a sophisticated scheme causing the loss of millions to retailers.

Several co-defendants had also pleaded guilty and have received sentences ranging from 18-40 months.  

Ouwad and Awad were permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.

HSI and FDA – OCI conducted the investigation. Assistant U.S. Attorneys Heather Winter and Richard Hanes prosecuted the case.

McALLEN, Texas – A 22-year-old Mission resident has been ordered to prison for conspiracy to transport undocumented aliens resulting in the death of one, announced U.S. Attorney Alamdar S. Hamdani.

Julio Garza IV pleaded guilty Feb. 15.

U.S. District Judge Micaela Alvarez has now ordered Garza to serve 45 months in federal prison to be immediately followed by three years of supervised release. In handing down the sentence, the court commented on how it was important to remember someone died. The individual may have fled, but Garza was still accountable for a death. Judge Alvarez noted that people in Garza’s position convince themselves that smuggling aliens is okay because the person took the risk. However, she pointed out that it’s a crime and that this type of crime often results in people being injured.

On April 15, 2021, law enforcement conducted a routine immigration traffic stop on US Hwy 281 near Falfurrias on a tan Ford Taurus. When the vehicle stopped along the highway, multiple people fled.

A passing box truck struck and killed one of those individuals. Authorities determined he was a citizen of Honduras illegally residing in the United States.

The investigation revealed Garza had hired the driver to transport the undocumented aliens from Edinburg to a designated location south of the Falfurrias Border Patrol (BP) checkpoint. Garza sent audio and text messages as well as GPS coordinates in order to direct the smuggling operation.

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

Homeland Security Investigations conducted the investigation with the assistance of Border Patrol. Assistant U.S. Attorney M. Alexis Garcia prosecuted the case.

LAREDO, Texas – A 37-year-old Laredo resident has been sentenced for possession of a machine gun, possession of a firearm by a convicted felon and conspiracy to possess intent to distribute cocaine, announced U.S. Attorney Alamdar S. Hamdani.

Jaime Jesus Esquivel pleaded guilty June 6, admitting, in part, to producing and illegally exporting fully automatic firearms to Mexico for the use of drug cartels.

U.S. District Marina Garcia Marmolejo has now handed Esquivel a total 120-month-term of imprisonment to be immediately followed by three years of supervised release. At the hearing, the court heard that Esquivel bragged to an undercover officer that he manufactured and trafficked hundreds of firearms into Mexico. In handing down the sentence, the court noted that in trafficking both narcotics and firearms that Esquivel was trafficking in death.

As part of the undercover investigation, authorities conducted four controlled purchases of cocaine and multiple AR-type fully automatic rifles. The weapons were ghost guns, a common term for privately made firearms that are absent any manufacture marks of identification. Esquivel assembled and manufactured these weapons for distribution.

Esquivel also made the firearms from various components of combat weapons including Colt model M4 parts and a 3D-printed polymer AR-type drop in auto sear or machine gun conversion device (MGCD). An MGCD is any part designed and intended solely and exclusively for use in converting a weapon into a machine gun.

Law enforcement executed two search warrants and seized completed and privately manufactured AR-type lower receivers, various firearm parts, firearm manufacturing tools as well as 950 rounds of assorted ammunition, a 7.62mm rifle, a 12-gauge shotgun and a privately manufactured short-barrel fully automatic rifle without serial numbers or industry markings. They also found meth, cocaine and a 3D printer.

As a convicted felon, he is prohibited from possessing firearms or ammunition per federal law.

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

The Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives and Laredo Police Department conducted the investigation.

HOUSTON – A 48-year-old Katy resident has been sentenced to prison for defrauding Medicaid of more than $600,000, announced U.S. Attorney Alamdar S. Hamdani.

Kay Le Farmer pleaded guilty March 22.

U.S. District Judge George C. Hanks has now ordered Farmer to serve 56 months in federal prison to be immediately followed by two years of supervised release. At the hearing, the court heard how Farmer fraudulently obtained information of over 300 patients, her attempts to lie and cover-up her crimes and that she appeared to be searching for more employment opportunities to steal more information. In handing down the sentence, the court noted Farmer’s “cunning and calculated” actions. She emphasized Farmer’s “greed and selfishness” and said she manipulated everyone around her.

Farmer is the former office manager for her ex-husband - a therapist and Medicaid provider in the Houston area. Following their separation, Farmer admitted to using her ex-husband’s provider number to submit fraudulent claims to Medicaid, unbeknownst to him, for counseling services that were never provided.

In 2017, Farmer admitted to using her employment at a pediatrician’s office to obtain patient information. She then submitted more fraudulent claims to Medicaid under her ex-husband’s provider number.

In total, from 2013 until 2018, Farmer submitted, or caused the submission of, approximately $617,983.86 in claims for psychotherapy services that were not provided. Farmer admitted she was paid approximately $432,924.69 on those claims.

Farmer was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.

The Texas Health and Human Services - Office of Inspector General (OIG), Texas Attorney General’s Medicaid Fraud Control Unit and the U.S. Department of Health and Human Services - OIG conducted the investigation. Special Assistant U.S. Attorney Kathryn Olson prosecuted the case.

McALLEN, Texas – A 50-year-old Mexican national has been ordered to federal prison for possession with intent to distribute 88.5 kilograms of cocaine, announced U.S. Attorney Alamdar S. Hamdani.

Faustino Perez Luna pleaded guilty May 23.

U.S. District Judge Randy Crane has now ordered Luna to serve 70 months in federal prison. In handing down the sentence, the court noted it was a serious offense and involved a lot of narcotics.

On Nov. 13, 2022, Perez Luna was driving a tractor trailer loaded with cocaine. The drugs were the priority load of a known drug trafficking organization.

Luna approached the Falfurrias checkpoint and claimed to be headed to Atlanta to drop a load of produce. However, a K-9 soon alerted to the presence of narcotics within the vehicle. Authorities referred him to secondary inspection where they discovered the cocaine concealed between produce boxes on the tractor trailer.

The drugs weighed approximately 88.5 kilograms with an estimated street value of $1.5 million.

From March 2022 to Nov. 13, 2022, law enforcement arrested several others in connection with this drug trafficking organization. It operated in the lower Rio Grande Valley transporting either narcotics, guns or money.

The investigation led to the discovery of the priority load – the 88.5 kilograms Luna had transported. It was intended for Atlanta, Georgia.

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

Drug Enforcement Administration conducted the investigation with the assistance of Border Patrol. Assistant U.S. Attorney Eric D. Flores prosecuted the case.

BROWNSVILLE, Texas –  A 37-year-old resident of Los Fresnos has been sentenced for enticement of a child, announced U.S. Attorney Alamdar S. Hamdani.

Guadalupe “Pete” Azocar pleaded guilty March 21.

U.S. District Judge Fernando Rodriguez Jr. has now ordered him to serve 216 months in federal prison. Azocar was further ordered to pay a $24,000 fine and must serve 10  years on supervised release following the completion of his prison term. During that time, he will have to comply with numerous requirements designed to restrict his access to children and the internet. He will also be ordered to register as a sex offender.

In February 2020, Azocar struck up an online friendship with an 11-year-old minor girl through HOLA, an online video chat and live streaming application. The conversations migrated to WhatsApp and Facebook Messenger where Azocar was able to send messages and videos and live video chat with the minor victim for several months.

Even though Azocar was aware the minor was then 12 years old, he repeatedly sent pornographic videos, including videos of child pornography to the victim and persuaded her to send sexually explicit images and videos of herself.

The messages between Azocar and the victim showed that Azocar had plans to meet the minor child in person.

Azocar was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future. 

Homeland Security Investigations conducted the investigation.

Assistant U.S. Attorney Ana C. Cano is prosecuting the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources link on that page.

HOUSTON – A 50-year-old Houston resident has pleaded guilty to interstate communications with a threat to kidnap or injure, announced U.S. Attorney Alamdar S. Hamdani.

On Sept. 1, 2022, Tiffani Shea Gish aka Evelyn Salt left three threatening voicemails on the chamber’s telephone of a U.S. district judge from Florida. In the messages, Gish claimed to be a member of several military combat units, trained and familiar with weapons of war.

In the first message, she said the victim was marked for assignation and would get a bullet in the head. Gish then reiterated the same threat in two subsequent messages and used expletives when adding that she had ordered snipers and a bomb to the victim’s house and would throw a bullet to the victim’s head.

“As prosecutors, our mission is to always protect the rule of law, and that necessarily means protecting the judges who interpret and apply the law,” said Hamdani. “Tiffani Gish’s threats to assassinate a federal judge have no place in a republic whose strength comes from the rule of law. As a result, my office and its public servants have no tolerance for those like Gish who threaten judges and in turn seek to undermine our system of government.”

U.S. District Judge David Hittner accepted the plea and set sentencing for Feb. 9, 2024. At that time, Gish faces up to five years imprisonment and a possible $250,000 maximum fine. She has been and will remain in custody pending that hearing.

The FBI and U.S. Marshals Service conducted the investigation. Assistant U.S. Attorney Steven Schammel prosecuted the case.

McALLEN, Texas – A federal jury has convicted a 20-year-old El Salvadorian for assaulting a Border Patrol (BP) agent, announced U.S. Attorney Alamdar S. Hamdani.

The jury convicted Jose Milton Mendoza-Felipe following a two-day trial.

On June 28, law enforcement approached a group of undocumented non-citizens near the Rio Grande River. Mendoza-Felipe was one of those individuals and tried to flee the area. A BP agent caught up to him and attempted to place him in custody. However, Mendoza-Felipe resisted and became combative.

The jury heard testimony that Mendoza-Felipe attempted to strangle the agent by squeezing his windpipe during the struggle. When the agent was able to escape from the chokehold, Mendoza-Felipe again tried to grab him by the throat, but struck the agent’s jaw instead, causing him to bleed. Mendoza-Felipe only complied once another BP agent arrived.

At trial, the jury saw the scratch marks left on the agent’s neck and heard how he had to take pain medication for his injuries.

Mendoza-Felipe testified in the trial, claiming that he did not choke the agent and that he did not realize he was law enforcement. He told the jury he was just defending himself. The jury did not believe defense claims and found him guilty as charged.

U.S. District Judge Drew B. Tipton presided over trial and set sentencing for Jan. 29, 2024. At that time, Mendoza-Felipe faces up to eight years in prison and a possible $250,000 fine.

Mendoza-Felipe has been and will remain in custody pending sentencing

The FBI conducted the investigation with the assistance of Border Patrol. Assistant U.S. Attorneys Lee Fry and Devin V. Walker are prosecuting the case.

McALLEN, Texas – A federal jury has convicted a 25-year-old man on multiple counts for hostage taking, smuggling and weapons charges, announced U.S. Attorney Alamdar S. Hamdani.

The jury deliberated for less than an hour before returning the guilty verdict on all counts against Heriberto Mendez-Lozano following a three-day trial.

During the trial, the jury heard evidence that on Sept. 29, 2022, Mendez-Lozano and others were engaged in smuggling migrants from near the Rio Grande River further into the United States.

On that date, the group was harboring five undocumented aliens. Instead of transporting the aliens further into the United States, Mendez-Lozano and his co-conspirators held the aliens against their will at a location in Donna.

There, Mendez-Lozano and others brandished firearms, held guns to the heads and ribs of hostages, threatened the hostages and forced them to call family members to demand money for their release.

The investigation led law enforcement to the location in Donna where they arrested Mendez-Lozano who had a pending warrant for aggravated robbery, and a co-conspirator Lorenzo Campbell. Authorities also rescued the hostages from the scene.

U.S. District Judge Micaela Alvarez presided over the trial and set sentencing for Jan. 17, 2024. At that time, he faces life in a federal prison. Mendez-Lozano has been and will remain in custody pending that hearing.

Homeland Security Investigations (HSI) conducted the investigation with the assistance of Border Patrol (BP), U.S. Marshals Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives and Hidalgo County Sherriff’s Office.

Assistant U.S. Attorneys Colton Turner and Theodore Parran prosecuted the case as part of the Human Smuggling Prevention Program (HSPP). The primary goal of HSPP is to disrupt and dismantle human smuggling organizations on our Southwest Border through close cooperation with HSI, BP, Customs and Border Protection – Office of Field Operations and local law enforcement partners.

CORPUS CHRISTI, Texas – A 45-year-old woman has pleaded guilty to conspiracy to possess with the intent to distribute liquid meth, announced U.S. Attorney Alamdar S. Hamdani.

The investigation into Elena Barrera began in November 2020 when authorities learned of a parcel containing liquid meth that was being shipped from Mexico to Mathis. Law enforcement intercepted the package and found it contained approximately seven kilograms of liquid meth concealed within shampoo bottles. They conducted a controlled delivery at the post office and Barrera picked up the package.

As part of her plea, Barrera admitted to using the mail to receive multiple other packages of narcotics and to recruiting others to retrieve packages of narcotics for her.  

U.S. District Judge David S. Morales will impose sentencing Jan. 30, 2024. At that time, Barrera faces up to life in federal prison and a possible $10 million maximum fine.

Barrera was permitted to remain on bond pending that hearing.

Texas Department of Public Safety and Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Tyler Foster is prosecuting the case.

HOUSTON — The Justice Department announced today its findings that four Texas counties violated Title II of the Americans with Disabilities Act (ADA) by maintaining election websites that discriminate against individuals with vision or manual disabilities.

In public letters issued to Colorado County, Runnels County, Smith County and Upton County, the department detailed its findings following its investigation and asked the counties to work with the Civil Rights Division and the U.S. Attorneys’ Offices for the Eastern, Northern, Southern and Western Districts of Texas to resolve the identified civil rights violations.

“My 80-year-old mother’s arthritis means she can’t grasp a computer mouse like she used to, increasingly relying on keyboard accessible websites. And, her failing vision makes it hard for her to navigate a website that lacks clear and correct titles,” said U.S. Attorney Alamdar S. Hamdani. “Despite her disabilities, my mother’s fundamental right to vote is the same as any other’s. All voters should have full access to election information, including individuals with disabilities.”

“Voting is fundamental to American democracy,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “It is imperative that all eligible voters with disabilities across the country have the information they need to access the ballot and exercise their right to vote in state and federal elections.”

The election websites for these four Texas counties provide important information about how to vote, such as registration requirements, identification requirements and voting information for people with disabilities. The websites also link to other critical information, including details about early voting and voting on election day.

The department found that the websites are not accessible to individuals who are blind or have low vision, or who cannot grasp a mouse, and use screen readers, keyboards or other assistive technology. For example, on all four of the election websites, menus and links do not function properly for people who use a keyboard to navigate, and posted documents are inaccessible to people who use assistive technologies. Because the election websites are inaccessible, the counties deny people with vision and manual disabilities equal access to election programs and online services provided through these websites and fail to ensure effective communication with people with disabilities. 

These four investigations are part of the department’s ADA Voting Initiative, which focuses on protecting the voting rights of individuals with disabilities. People with information about these findings are encouraged to contact the department via email at TXWebsites@usdoj.gov, through the Civil Rights Division’s Civil Rights Portal, available at civilrights.justice.gov/, or by calling 888-473-2780. To read more about the ADA and how it applies to voting, please visit www.ada.gov/topics/voting/.

HOUSTON – Two Houston men have admitted to holding a victim hostage at gunpoint, beating and threatening him with death, announced U.S. Attorney Alamdar S. Hamdani. 

Noe Hernandez, 39, helped kidnap and hold the victim for nearly 24 hours on May 3, 2019. He also used a taser to inflict electric shocks to the victim while his hands were tied behind his back.

Homero Gallegos, 43, entered his plea in June.

High-level drug traffickers in Mexico connected to the Cartel Jalisco Nueva Generacion (CJNG) ordered the kidnapping. Mexican cartel members called the victim’s family members and demanded $400,000 for his release. Law enforcement executed a staged pick up of the ransom money in Houston and were able to rescue the victim.

“The Cartel Jalisco Nueva Generacion (CJNG) is one of the most violent cartels in Mexico, responsible for trafficking tons of cocaine, meth and fentanyl into the United States,” said Hamdani. “It’s power comes from a willingness, almost an eagerness, to commit unspeakable acts, including murder. Kidnapping and using a taser to torture exemplifies the level of brutality associated with one of the world’s most dangerous transnational criminal organizations, one that ravages communities from Mexico to Houston…and beyond.”

U.S. District Judge Andrew S. Hanen will impose sentencing March 24, 2024, at which time both men face up to life imprisonment, a possible $250,000 maximum fine. They will remain in custody pending that hearing.

The Drug Enforcement Administration, FBI and the Houston Police Department conducted the investigation. Assistant U.S. Attorneys Anibal J. Alaniz and Casey N. MacDonald are prosecuting the case. 

HOUSTON – Two Assistant U.S. Attorneys will lead the efforts of this office in connection with the Department of Justice’s (DOJ) nationwide Election Day Program for the Nov. 7 election, announced U.S. Attorney Alamdar S. Hamdani.

Civil Chief Daniel Hu has been appointed to serve as the election officer for civil matters, while Deputy Criminal Chief Sharad Khandelwal will act as the criminal election officer. In their capacities, both are responsible for overseeing the Southern District of Texas’s handling of election day complaints of voting rights concerns, threats of violence to election officials or staff and election fraud in consultation with DOJ headquarters in Washington.

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

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

The franchise is the cornerstone of American democracy. In order to respond to complaints of voting rights concerns and election fraud during the upcoming election and to ensure that such complaints are directed to the appropriate authorities, Assistant U.S. Attorneys Khandelwal and Hu will be on duty in this district while the polls are open and can be reached at 713-567-9345 and 713-567-9518, respectively.

In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The main number in Houston is 713-693-5000, while South Texas residents can contact the San Antonio office at 210-225-6741.

Complaints about possible violations of the federal voting rights laws can also be made directly to the Civil Rights Division in Washington, D.C. by phone at 800-253-3931.

Ensuring free and fair elections depends in large part on the assistance of the American electorate. Those who have specific information about voting rights concerns or election fraud should make that information available to DOJ.

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

CORPUS CHRISTI, Texas – A former member of the Corpus Christi Independent School District Board has pleaded guilty to filing a false tax return, announced U.S. Attorney Alamdar S. Hamdani.

The investigation into John Longoria began in December 2018 following an approximately two-year extensive and suspicious remodeling project that occurred at his home. Authorities ultimately executed several search warrants at his residence and elsewhere in November 2020.

As a result of the financial investigation, law enforcement determined Longoria had underreported his income to the IRS for tax years 2014 through 2016. As part of his plea, he admitted he had failed to truthfully disclose to the IRS all income he received in the form of goods, property or services during that time.

Longoria has agreed to pay restitution to the Department of the Treasury in the amount of $187,315.

U.S. District Judge David S. Morales will impose sentencing Jan. 24, 2024. At that time, Longoria faces up to three years in federal prison and a possible $100,000 maximum fine.

Longoria was permitted to remain on bond pending that hearing.

The FBI and IRS Criminal Investigation conducted the investigation. Assistant U.S. Attorney Lance Watt is prosecuting the case.

HOUSTON – A federal grand jury has returned an indictment against a 20-year-old Palestinian citizen for possession of a firearm by a prohibited person, announced U.S. Attorney Alamdar S. Hamdani.

The charges allege Sohaib Abuayyash was an alien illegally and unlawfully in the United States. He knowingly possessed a firearm, namely a Canik, model TP9 Elite SC, 9 mm pistol, according to the indictment.

The FBI arrested Abuayyash Oct. 19 who remains detained pending further criminal proceedings. He is set to appear for his arraignment Nov. 13 before U.S. Magistrate Judge Yvonne Ho in Houston at 2 p.m.

According to the criminal complaint filed upon his arrest, Abuayyash entered the United States on a nonimmigrant visa, which expired in 2019, and has allegedly been in direct contact with others who share a radical mindset. The charges further allege he has been conducting physical training and has trained with weapons to possibly commit an attack.

If convicted, he faces up to 15 years in federal prison as well as a possible $250,000 maximum fine.

The FBI is conducting the investigation.  

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

McALLEN, Texas – A 37-year-old Alton man has been ordered to federal prison for being a felon in possession of a firearm, announced U.S. Attorney Alamdar S. Hamdani.

Juan Manuel Teran Jr., aka El Blunt, pleaded guilty June 22.

Chief U.S. District Judge Randy Crane has now ordered Teran to serve 57 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the court heard additional information about Teran’s history of robbery, repeated assaults on women and felony drug possession. In imposing the sentence, Judge Crane adopted findings that Teran was trafficking in narcotics at the time that he possessed the firearms.

In January, law enforcement responded to a domestic violence call at a residence in McAllen. The incident resulted in an arrest warrant for Terran for assault on a pregnant person.

Upon his arrest, authorities found Terran to be in possession of meth, cocaine, marijuana, Alprazolam, Clonazepam and heroin. He also had two firearms.

As a convicted felon, he is prohibited from possessing firearms or ammunition per federal law.

Teran was prosecuted as part of a joint Bureau of Alcohol, Tobacco, Firearms and Explosives and U.S. Attorney’s Office initiative known as Operation: Knock Down. It started in 2022 and focuses federal resources on armed and violent offenders in the Rio Grande Valley.

Assistant U.S. Attorney Robert L. Guerra Jr. prosecuted the case.

LAREDO, Texas – A 22-year-old Laredo resident has been ordered to federal prison for production of child pornography, announced U.S. Attorney Alamdar S. Hamdani.

Victor Antonio Puente pleaded guilty July 5.

U.S. District Judge Lee H Rosenthal has now sentenced Puente to 180 months in federal prison. The court found he committed the offense while under supervised release for a previous alien smuggling offense which much be served consecutively for a total 192-month-term of imprisonment. In handing down the prison terms, the court noted the “horrific” events and that Puente was “not acting as a human being.” Puente will serve 10 years on supervised release following completion of his prison term. During that time, he will have to comply with numerous requirements designed to restrict his access to children and the internet. Puente will also be ordered to register as a sex offender.

A hearing date will be set in the near future to determine the amount that Puente will be ordered to pay in restitution to the victim.

“Victor Puente gave a 15-year old alcohol, got her drunk and sexually violated her in area motels, but the once-convicted alien smuggler didn’t stop there,” said Hamdani. “Not only did he violate her physically, he posted images and videos of his abhorrent behavior on SnapChat. As the father of a 15-year old daughter myself, I am thankful that this predator won’t come anywhere near my or any other daughter for a very long time to come.”

“This sentencing reflects the FBI's dedication to protecting children from those who choose to prey on the most innocent within our communities,” said Acting Special Agent in Charge Justin Garris for the FBI San Antonio Division. “We want to thank the Laredo Police Department for their unwavering support with this investigation.”

On June 5, 2022, Puente rented a motel room in Laredo. There, he engaged in sexual activity with a 15-year-old female victim. He used his personal cell phone to record and photograph sexually explicit conduct between him and the minor and then uploaded the content via social media.

A forensic analysis of Puente’s cell phone revealed videos of him engaging in intercourse with the victim. Other videos showed him fondling her while both are naked or were of her naked body while she slept.

The minor victim’s family was able to discover Puente’s location from a third-party and contacted law enforcement.

Puente denied that the minor victim was in the room. However, they located her and took her to a local hospital for observation and treatment.

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

The FBI conducted the investigation with the assistance of the Laredo Police Department. Assistant U.S. Attorneys (AUSAs) Homero Ramirez and Michael P. Makens and former AUSA April Ayers-Perez prosecuted the case.

It was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources link on that page.

LAREDO, Texas – Three Laredo residents have been sentenced for their roles in a conspiracy to distribute cocaine and launder money, announced U.S. Attorney Alamdar S. Hamdani.

Cesar Mendiola, 57, Rafael Rodriguez, 63, and Jose Angel Rodriguez III, 34, each pleaded guilty June 7.

U.S. District Judge Lee H Rosenthal has now imposed a 151-month term of imprisonment for Mendiola, while Rodriguez III and Rafael Rodriguez received 12 and 24 months, respectively. Each must also serve at least three years of supervised release following their sentences. At the hearing, the court heard additional evidence including this drug trafficking organization’s ties to the CDN cartel. In handing down the prison terms, Judge Rosenthal also ordered Mendiola to forfeit $25,400 of drug proceeds.

Elizardo Vasquez Jr., 31, was previously sentenced to 32 months in federal prison for his involvement. Another man - Jose Angel Rodriguez Jr., 60 -  also pleaded guilty and will be sentenced at a later date.

Throughout the course of this investigation, authorities seized nearly 10 kilograms of cocaine and over $147,000 in drug proceeds.

The investigation revealed brothers Rodriguez Jr. and Rafael Rodriguez would receive kilograms of cocaine from a source in Mexico and provide that cocaine to Mendiola for further distribution in and around Laredo. Rodriguez III kept records of transactions and drug proceeds for his father, Rodriguez Jr.

Mendiola and Rafael Rodriguez have been and will remain in custody while Rodriguez III, was permitted to remain on bond.  

The Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the Organized Crime Drug Enforcement Task Forces (OCDETF) operation with the assistance of the Webb County District Attorney’s Office, the Webb County Sheriff’s Office and the United Independent School District Police Department. OCDETF identifies, disrupts and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage.

Assistant U.S. Attorneys Anthony J. Evans and Brian Bajew prosecuted the case.

CORPUS CHRISTI, Texas – Two men have pleaded guilty to conspiring to traffic cocaine across the border, announced U.S. Attorney Alamdar S. Hamdani.

Mikeal Jovany Phillips, 35, Huffman, and Juan Andres Rodriguez-Murillo, 31, Mexico, conspired with others to smuggle narcotics into the United States by concealing the drugs inside car batteries.

On Jan. 6, Christopher Sheffield, 38, Crosby, drove a gold SUV to the Border Patrol (BP) checkpoint near Sarita. Upon inspection, authorities discovered approximately 2.8 kilograms of cocaine hidden inside the battery compartment. The battery shell contained a smaller battery to power the vehicle and three bundles of cocaine.

The investigation revealed numerous text and Facebook messages between Sheffield and Phillips discussing the trip. Subsequently, authorities learned Phillips had coordinated the trip and arranged for Sheffield to travel from the Houston area to Brownsville to retrieve the cocaine. While in Brownsville, Sheffield met Rodriguez-Murillo who then provided the cocaine-filled car battery and made the switch in the vehicle.

U.S. District Judge Nelva Gonzales Ramos will impose sentencing for Phillips and Rodriguez-Murillo Jan. 30 and Feb. 6, 2024, respectively. At that time, each man faces up to 40 years in federal prison and a possible $5 million maximum fine.

Phillips and Rodriguez-Murillo have been and will remain in custody pending sentencing.

Sheffield previously pleaded guilty and is also pending sentencing.

The Drug Enforcement Administration and Border Patrol conducted the investigation.

Assistant U.S. Attorney Ashley Martin is prosecuting the case.

HOUSTON – A federal jury in Houston has convicted a 50-year-old Houston man on multiple violent crimes related to a drug trafficking conspiracy, announced U.S. Attorney Alamdar S. Hamdani.

The jury deliberated for six hours before returning the guilty verdicts on all counts against Ronald Brown aka Nuk, Nook or Nookie following a six-day trial. He was found guilty of conspiracy to commit murder for hire, intentional killing related to drug trafficking, two counts of using a firearm in the commission of a murder, kidnapping and using a firearm in relation to the kidnapping as well as conspiracy to distribute and possess with the intent to distribute cocaine.

“Stuffing a zip-tied man into a trunk, raining down gunfire during a car chase and hiring a murderer…all part of Ronald Brown’s illicit cocaine business,” said Hamdani. “People like him destroy communities with the poison they sell and the violence they commit. Brown’s actions cut short someone’s life and put others in peril. And now, thanks to the hard work of federal prosecutors and law enforcement, the only thing in peril is Brown’s freedom.” 

During trial, the jury heard from several witnesses who testified about working directly for Brown. He was responsible for moving as much as 100 to 200 kilograms of cocaine each week from Houston to Atlanta, Georgia, on 18-wheeler trucks and car haulers. Once in Atlanta, his associates would divide the shipments before delivering it to Brown’s customers.

In December 2013, law enforcement seized 21 kilograms of cocaine from one of Brown’s associates who had placed the bag in a vehicle at a Valero gas station. Brown was upset by the loss and sidelined him from the drug operation at that time.

The jury also heard testimony from one of Brown’s drivers who was robbed of approximately 56 kilograms of cocaine April 18, 2014. Brown suspected the same individual who lost the drugs at the Valero and another drug associate conspired to steal the cocaine from him. 

On April 23, 2014, Brown and others kidnapped the associate, zip-tied his arms and legs and put him in the trunk of Brown’s girlfriend’s vehicle. A good Samaritan picked up the victim and attempted to drive him to safety after the victim managed to free himself from the trunk. However, Brown pursued and shot at them repeatedly, ultimately striking the good Samaritan in the upper body and the associate in the head. Both survived.

One of the kidnappers told the jury he met Brown following the kidnapping who directed him to dump the vehicle and gun used during the shooting. Brown also directed his girlfriend to report the vehicle as stolen.

Following the failed attempt to kill this person, Brown began searching for the other man from the Valero incident whom he also thought was part of the alleged theft on April 18 in order reclaim his drugs. He ultimately decided he wanted to kill him. Testimony revealed Brown was able to obtain the date of the man’s next parole visit. Through a middleman, Brown then hired a shooter and provided him with a handgun.

Following that parole visit on July 1, 2014, the victim returned to his vehicle in the parking lot. The shooter then fired multiple shots at close range at the victim as he sat in the driver’s seat. He died at the scene. 

Afterwards, Brown met the shooter and middleman in the parking lot of a grocery store and paid them $20,000. 

The defense attempted to convince the jury that other members of Brown’s drug trafficking organization orchestrated the kidnapping and murder.  They did not believe those claims and found Brown guilty as charged.

Senior U.S. District Judge Sim Lake presided over the trial and set sentencing for Jan. 29, 2024. At that time, he will get life in a federal prison. Brown has been and will remain in custody pending that hearing.

Assistant U.S. Attorneys Sebastian A. Edwards and Britni Cooper are prosecuting the case.

The FBI conducted the investigation with assistance from the Houston Police Department’s Homicide Division, Texas Department of Criminal Justice – Parole Division, U.S. Marshals Service, Federal Bureau of Prisons and Drug Enforcement Administration. 

HOUSTON - A 67-year-old naturalized citizen of the United States has made his appearance in Houston federal court and remains detained pending further criminal proceedings, announced U.S. Attorney Alamdar S. Hamdani.

Ricardo Barrera was the leader of a transnational criminal organization operating from the Republic of Mexico, the Rio Grande Valley and Houston. He was recently extradited to the United States and is now in custody.

He appeared before U.S. Magistrate Judge Christina A. Bryan, at which time the court heard evidence outlining Barrera’s organization. The court determined he was a flight risk and ordered he remain in custody pending further criminal proceedings.

Barrera’s organization allegedly provided domestic transportation services for the Los Zetas Cartel and Cartel del Golfo to conceal the transportation of narcotics and currency through Mexico and into the United States.

The charges allege the organization utilized numerous cloned tractor trailers from various well-known retailers and businesses to conceal the transportation of narcotics.  

The investigation resulted in the seizure of more than 76,795 pounds of marijuana, according to the allegations.  

Barrera fled to Mexico after learning of the charges. Mexican authorities arrested him on a provisional arrest warrant in Miguel Aleman, Mexico, Oct. 23, 2021. He was extradited to the United States Oct. 10.

If convicted, Barrera faces up to life in federal prison as well as a possible $10 million fine.

Homeland Security Investigations conducted the investigation as part of the Organized Crime Drug Enforcement Task Forces (OCDETF) with assistance from Drug Enforcement Administration, Texas Department of Public Safety, IRS Criminal Investigation, Houston Police Department, Harris County Sheriff’s Office and Pasadena Police Department as well as the U.S. Marshals Service. The Justice Department’s Office of International Affairs worked with the Mexican Attorney General’s Office to secure the arrest and extradition of Barrera. Assistant U.S. Attorney Eric D. Smith is prosecuting the case.

Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage. 

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

BROWNSVILLE, Texas – A 34-year-old resident of Ciudad Victoria, Tamaulipas, Mexico, has been sentenced for possessing child pornography found on his cell phone as he tried to enter the country, announced U.S. Attorney Alamdar S. Hamdani.

Juan Jesus Banda-Olivo pleaded guilty Jan. 25.

U.S. District Judge Rolando Olvera has now ordered Banda-Olivo

to serve 97 months in federal prison. Garza was further ordered to pay $3,000 in restitution to a known victim and will serve eight years on supervised release following completion of his prison term. During that time, he will have to comply with numerous requirements designed to restrict his access to children and the internet. He will also be ordered to register as a sex offender.

On Aug. 15, 2022, Banda-Olivo attempted to make entry into the United States through the Veterans Port of Entry. Authorities believed he was in the country illegally and sent him to secondary inspection.

There, law enforcement conducted a consensual search of Banda-Olivo’s cell phone and discovered multiple photographs and videos of child pornography. The investigation revealed Banda-Olivo possessed 1,223 unique images and videos of child pornography on his cell phone and his cloud storage account. Some of the images included images of  the sexual abuse of toddlers and prepubescent minors. The images found on the seized cell phone were submitted to the National Center for Missing and Exploited Children for victim identification.

Banda-Olivo has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

Homeland Security Investigations conducted the investigation.

Assistant U.S. Attorney Ana C. Cano prosecuted the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources link on that page.

GALVESTON, Texas – A 29-year-old Beeville resident has been sentenced for producing and possessing child pornography, announced U.S. Attorney Alamdar S. Hamdani.

Pasquale Salas was a former deputy with the Matagorda County Sheriff’s Office at the time of his crimes. He pleaded guilty June 6.

U.S. District Judge Jeffrey Brown has now ordered him to serve 360 and 24 months for the production and possession convictions, respectively. They will run consecutively for a total 384-month-term of imprisonment. In handing down the prison terms, the court noted that the fact Salas was a law enforcement officer weighed heavily on him. Salas was further ordered to serve 15 years on supervised release following completion of his prison term. During that time, he will have to comply with numerous requirements designed to restrict his access to children and the internet. He will also be ordered to register as a sex offender.

He was previously sentenced to 220 months in prison in a related case in the District of Massachusetts. The term imposed today will run concurrently to that sentence for a total federal prison term of 384 months.

“Salas used Minecraft, a child’s game, to lure some of his victims inside his vicious web,” said Hamdani. “Not only did he exploit young girls, but he also violated the public trust. He was a law enforcement officer who was sworn to protect and serve. Instead, he chose to manipulate and exploit young girls for his own deviant sexual gratification. The sentence handed down today will make sure he can’t access the places our children play online or have contact with them in person for decades to come.”

“For years, Pasquale Salas controlled, manipulated, sexually assaulted, and remotely monitored his underage victims,” said FBI Houston Acting Special Agent in Charge David Martinez. “Salas disgracefully used his status as a Texas lawman to threaten young girls into sending hundreds of sexually explicit photos and videos. Thanks to the bravery of his victims who came forward, Salas now sits behind bars unable to ever again target, threaten, or molest other children.”

The investigation began after authorities learned Salas had been communicating with a minor in Massachusetts for years, beginning when she was just 12 years old. Salas met her and another minor female online while playing Minecraft. 

Over the years, he developed a controlling, manipulative and sexually exploitive relationship with the victim. He knew her true age, but still had a virtual, but sexually-explicit relationship with the child. During that time, he made her send hundreds of nude photos and videos of herself, required her to follow specific strict rules and to wear only clothing he approved. He also tracked her location. Sales threatened the victim’s well-being and that of her family if she left him.

In July 2019, authorities executed a search warrant in Southern District of Texas as part of the Massachusetts investigation. At that time, they found incriminating evidence on his phone, including child pornography of several minor females, including that of minor female relative. 

Forensic analysis revealed he produced those images of the relative. She identified herself and the hands of Salas in the images/videos. In one video, he appears to be fondling the victim. She is asleep in all of the images and videos he produced.

He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined on the near future.

FBI Texas City conducted the investigation with the assistance of the Matagorda County Sheriff’s Office and Pearland Police Department as well as FBI in the Boston/Worcestor area and Worcestor Police Department in Massachusetts.

Assistant U.S. Attorney Sherri L. Zack is prosecuting the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources link on that page.

McALLEN, Texas – A 28-year old man has pleaded guilty to importing cocaine, announced U.S. Attorney Alamdar S. Hamdani.

On July 18, Victor Torres approached the Hidalgo port of entry checkpoint and told law enforcement he did not have any contraband. Authorities referred him to secondary inspection where a K-9 alerted to the battery area of the vehicle.

Law enforcement conducted an X-ray examination and discovered several anomalies which resulted in the discovery of four bricks of cocaine.

The drugs weighed approximately four kilograms with an estimated street value of approximately $40,000.

During his plea, Torres admitted he knew he was transporting drugs into United States and that individuals in Mexico recruited him.

U.S. District Judge Ricardo Hinojosa will impose sentencing Jan. 25, 2024. At that time, he faces up to 40 years in federal prison and a possible $5 million maximum fine.

Torres has been and will remain in custody pending that hearing.

Customs and Border Protection and Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Theodore Parran III prosecuted the case.

McALLEN, Texas – A 34-year-old Reynosa, Tamaulipas, city council woman has entered a guilty plea to possession with intent to distribute approximately 42 kilograms of cocaine, announced U.S. Attorney Alamdar S. Hamdani.

On June 10, Denisse Ahumada-Martinez drove a vehicle from Reynosa, Mexico, into the United States to the Falfurrias Border Patrol checkpoint. An X-ray search of the vehicle revealed multiple anomalies believed to be narcotics concealed within the vehicle.

At secondary inspection, law enforcement conducted a search of her vehicle and found approximately 42 kilograms of cocaine. The cocaine had an estimated street value of $900,000.

U.S. District Judge Ricardo H. Hinojosa will impose sentencing Jan. 31, 2024. At that time, Ahumada-Martinez faces up to life in prison and a possible $10 million maximum fine.

She has been and will remain in custody pending that hearing.

Drug Enforcement Administration and Customs and Border Protection conducted the investigation. Assistant U.S. Attorneys Laura Garcia and Alexa Parcell prosecuted the case.

HOUSTON –A 28-year-old Houston resident will now spend more than two decades in prison following his conviction for sex trafficking a 7th grader, announced U.S. Attorney Alamdar S. Hamdani.

Juwan James Davis pleaded guilty March 2. 

U.S. District Judge Alfred H. Bennett has now ordered Davis to serve 25 years in federal prison. At the hearing, the court heard additional information including how Davis tried to manipulate and control the minor victim four years later by contacting her from jail and attempting to get her to drop the charges. Davis was further ordered to serve 15 years on supervised release following completion of his prison term. Davis will also be ordered to register as a sex offender.

“Tragically, the young victim in this case died just a few months ago at the tender age of 18. Five years ago, when she was only 13, she should have been participating in what normal middle schoolers do - soccer games, school plays and pep rallies,” said Hamdani. “Instead, Juwan James Davis sold her body for sex; something a 7th grader should never have to endure. This sentence not only sends a message to others who prey on young children, but also gives this young victim’s family a sense of justice. It is just a shame she was not able to be in court to see it for herself.” 

The investigation began in February 2018 after authorities suspected Davis had trafficked a minor for sex. The victim was a 13-year-old girl.

She told authorities she met Davis on Snapchat and that he wanted her to have sex for money. Davis posted ads of her wearing lingerie on Backpage to advertise her for commercial sex.   

The victim told investigators Davis drove her to the hotels and would wait down the street until she finished engaging in commercial sex with the customers. Once finished, the victim would contact Davis who would pick her up and take the money.

The victim also reported Davis supplied her with drugs and had her branded by taking her to get a tattoo with his initials.

Law enforcement obtained a search warrant for Davis’ phone and found communications between him and the victim in which they discuss her engaging in commercial sex and the amounts to charge for these acts. The phone contained several pictures of the victim, some of which were used in the Backpage ads. There were also pictures of the 7th grader with a tattoo of Davis’ initials on her buttocks.

Tragically, the minor victim passed away earlier this year at the age of 18.

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

Homeland Security Investigations (HSI) and Montgomery County Sheriff’s Office conducted the investigation as part of the Human Trafficking Rescue Alliance (HTRA). Assistant U.S. Attorneys Sherri Zack and Kim Leo prosecuted the case.

HTRA law enforcement includes members of the Houston Police Department, FBI, HSI, Texas Attorney General’s Office, IRS-Criminal Investigation, Department of Labor (DOL), DOL – Wage and Hour Division, Department of State, Texas Alcoholic and Beverage Commission, Texas Department of Public Safety,  Department of Homeland Security – Office of Inspector General (OIG), Social Security Administration – OIG and Sheriff’s Offices in Harris and Montgomery counties in coordination with District Attorney’s offices in Harris, Montgomery and Fort Bend Counties.

Established in 2004, the United States Attorney’s office in Houston formed HTRA to combine resources with federal, state and local enforcement agencies and prosecutors, as well as non-governmental service organizations to target human traffickers while providing necessary services to those that the traffickers victimized. Since its inception, HTRA has been recognized as both a national and international model in identifying and assisting victims of human trafficking and prosecuting those engaged in trafficking offenses.

HOUSTON – A 52-year-old man who advertised himself as the “Used Car King of New York” has been ordered to federal prison following his conviction of conspiring to commit wire fraud, announced U.S. Attorney Alamdar S. Hamdani.

Octavian Ocasio pleaded guilty Oct. 18, 2022, to conspiring with others residing in the Southern District of Texas to buy and sell thousands of fraudulent Texas-issued temporary buyer tags for cars outside of Texas without a legitimate vehicle purchase.

U.S. District Judge George C. Hanks Jr. has now ordered Ocasio to serve 53 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the court heard how Ocasio and others engaged in a widespread fraud to use fictitious car dealerships to generate and sell Texas temporary buyer tags without actually selling cars, all while also making false promises and assurances that it was legal. In handing down the sentence, the court noted that Ocasio committed the offense utilizing mass marketing and sophisticated means. The court also ordered Ocasio to pay restitution to the Texas Department of Motor Vehicles in the amount of $324,600. 

“If it seems like there are more cars driving around the streets of Houston with temporary paper plates, you would be correct, in part thanks to the hundreds of thousands fake paper plates Ocasio sold to Texas drivers,” said Hamdani. “Ocasio’s fake plates would come back to a car that was never sold or sold to drivers who never should have been issued plates in the first place. Because of this, Texas recently changed the way paper plates are issued, and because of his decision to produce and sell fake plates, Ocasio will now spend several years inside of a real jail cell.”

“It’s not every day that one of our cases leads to changes in the law, so I’m extremely proud of our FBI Houston agents and our partners who maneuvered through the complexities and scale of this investigation in the name of justice,” said Acting Special Agent in Charge David Martinez of the FBI. “Ocasio was one of several who, for too-long, allowed thousands of drivers across the country to ride around with fraudulent paper license plates- all just to save a few dollars. Now, he’ll have to park himself inside a federal prison to pay for his crimes. Ocasio and his co-conspirators pocketed more than $200 million from their illegal activity which exploited not just the state of Texas but allowed unsafe vehicles on our streets with uninsured and unlicensed drivers at the wheel.”

Ocasio and co-conspirators used the internet to buy and sell the fraudulent state-issued buyer tags and exchange proceeds from the illegal tag sales.

At the time of his plea, Ocasio acknowledged he and his co-conspirators communicated through accounts on Gmail, Instagram and Facebook to receive and deliver fraudulent buyer tags to purchasers all over the United States, including New York, Florida and Washington, D.C. 

He also admitted he and his co-conspirators advertised the state-issued buyer tags on social media platforms and received and shared fraud proceeds via electronic payment services such as Cash App and Zelle.

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

Emmanuel Padilla Reyes aka Christian Hernandez Bonilla or Noel Rivera is still a fugitive in this case. The FBI is offering a $5,000 reward to anyone providing information that directly leads to his arrest. Those with information about the fugitive’s location should call 1-800-CALL-FBI or email www.TIPS.FBI.GOV

The FBI conducted the investigation with assistance of Travis County Precinct 3 Constable’s Office, Houston Police Department, Texas Department of Public Safety, Texas Department of Motor Vehicles, Harris County Sheriff’s Office, New York State Police and New York City Police Department. Assistant U.S. Attorneys Belinda Beek and Adam Goldman prosecuted the case.

BROWNSVILLE, Texas – A 22-year-old man from Brownsville has been ordered to federal prison following his conviction for transporting and attempting to transport undocumented aliens and assaulting a federal officer, announced U.S. Attorney Alamdar S. Hamdani.

Cristian Rodriguez pleaded guilty May 23.

U.S. District Judge Fernando Rodriguez Jr. has now ordered Rodriguez to serve 48 months in federal prison to be immediately followed by two years of supervised release.

On Sept. 16, 2022, law enforcement observed three individuals running away from the border wall and getting in a gray vehicle at an intersection in Brownsville. Authorities activated emergency equipment but the driver - Rodriguez - impacted the marked unit in a head-on collision. 

Authorities extracted the occupants and evaluated them for injuries. 

In total, there were five occupants in the gray vehicle, three of whom were in the rear - Mexican nationals without proper documentation to be in or remain in the United States. They had just made an illegal entry into the United States by crossing the Rio Grande River.

The front passenger was Rolando Rodriguez, the brother of Cristian Rodriguez. He had also pleaded guilty and was previously sentenced to 46 months in federal prison followed by two years of supervised release for transporting and attempting to transport undocumented aliens. 

Previously released on bond, Cristian Rodriguez was permitted to remain on bond and voluntarily surrender in the near future.

Border Patrol and FBI conducted the investigation. Assistant U.S. Attorneys David Coronado and Paul Marian prosecuted the case.

HOUSTON – The Greater Houston Partnership and U.S. Commercial Service are hosting a forum Thursday, Oct. 19 from 8 a.m. to 12:30 p.m. to support engagement for the Disruptive Technology Strike Force with business leaders in Houston.

U.S. Attorney Hamdani will participate in a session entitled Global Trade Threats and National & Economic Security featuring leadership from the Department of Justice’s National Security Division (NSD) and Department of Commerce.

Other speakers on varying topics include personnel from FBI and Homeland Security Investigations.

Speakers will discuss best practices to protect U.S. companies from hidden threats that can compromise sensitive information and leave them vulnerable to a host of security attacks. Topics include global trade threats, cyber threats, theft of trade secrets, economic espionage and more.

Under the leadership of the NSD and BIS, the strike force was launched to protect U.S. advanced technologies' critical technological assets that are at risk of being illegally acquired by foreign adversaries. The strike force operates in 14 metropolitan regions across the United States including Houston and Dallas with oversight from the local U.S. Attorneys’ Offices.

According to the DOJ, nation-state adversaries such as the People’s Republic of China, Iran, Russia and North Korea can use advanced technology to enhance its military capabilities, improve calculations in weapons design and testing and develop algorithms to break encryptions that protect sensitive data and classified information.

Registration is $40 to attend and the registration form is available online. Open to the public and media, the discussions will be held at Partnership Tower, 701 Avenida De Las Americas Houston, TX 77010.

Click here for more information on the Disruptive Technology Strike Force.

CORPUS CHRISTI, Texas – A 43-year-old man has been ordered to federal prison for trafficking cocaine, announced U.S. Attorney Alamdar S. Hamdani.

A federal jury convicted Juan Pablo Ramirez July 12 following a one-day trial for possession with the intent to distribute 5000 grams of cocaine.

U.S. District Judge Nelva Gonzales Ramos ordered Ramirez to serve 108 months in federal prison to be immediately followed by four years of supervised release. The court heard details about his criminal history including his conviction for distributing meth. In handing down the sentence, the court noted the amount of drugs involved in the offense as well as his prior federal conviction for drug trafficking.

On Jan. 19, Ramirez drove his truck to the Falfurrias Border Patrol (BP) checkpoint. At initial inspection, Ramirez consented to a z-portal examination of his truck. It revealed anomalies in his truck dashboard which turned out to be five packages of cocaine.

The street value of the cocaine was approximately $100,000.

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

Border Patrol, Drug Enforcement Administration, Jim Wells Police Department and Corpus Christi Police Department conducted the investigation. Assistant U.S. Attorneys Ashley Martin, John Lamont and John Marck prosecuted the case.

HOUSTON – A 55-year-old Houston resident is now in custody for wire fraud in relation to a fraudulent loan scheme, announced U.S. Attorney Alamdar S. Hamdani.

Authorities took Michael Wayne Galvan into custody Oct. 12. He is expected to make his initial appearance before U.S. Magistrate Judge Christina Bryan at 2 p.m.

The three-count indictment, returned Aug. 17, alleges Galvan owned and operated MWG Ventures LLC dba MGB Builders. He allegedly defrauded various individuals by making false representations to obtain loans from them.

Galvan solicited loans to purchase tile and granite from China and overseas for his construction business, according to the charges. However, the indictment alleges he did not use the loan money for that purpose and instead used some of it to repay loans and interest to other lenders. 

If convicted, Galvan faces up to 20 years in prison and a possible $250,000 maximum fine.

The FBI conducted the investigation. Assistant U.S. Attorney John Braddock is prosecuting 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.

BROWNSVILLE, Texas – A 40-year-old assistant city manager and school board president is now in custody on charges of conspiracy to possess with intent to distribute control substances, announced U.S. Attorney Alamdar S. Hamdani. 

Authorities arrested Francisco aka Frank Javier Alanis today. He is expected to make his initial appearance before U.S. Magistrate Judge Ignacio Torteya Oct. 16 at 9 a.m.

A federal grand jury returned the three-count superseding indictment Oct. 3. 

From January 2020 to March 20, 2022, Alanis allegedly conspired with Jose Rosbel Salas and others to possess with intent to distribute controlled substances, mainly cocaine. 

If convicted, Alanis faces a mandatory minimum of 10 years up to life in federal prison as well as a possible $10 million maximum fine. The indictment also includes a notice of forfeiture related to the charges.

Salas, 42, Weslaco, has pleaded guilty for his role and is awaiting sentencing. Also charged are David Gomez Ramos, 34, and Gregorio Salinas, 52, both of Mercedes, and Juan Pablo Serrata, 48, Santa Rosa. They are currently in custody pending further criminal proceedings.

Homeland Security Investigations conducted the investigation with the assistance of the Drug Enforcement Administration, High Intensity Drug Trafficking Area task force, Border Patrol, Texas Department of Public Safety and Texas Rangers. Assistant U.S. Attorney Alejandra Andrade is prosecuting the case.   

The investigation is part of the Organized Crime and Drug Enforcement Task Forces which identifies, disrupts and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage. 

   

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

HOUSTON – A 37-year-old Sugarland resident has pleaded guilty to aggravated identity theft in connection with a scheme to fraudulently obtain and launder more than $500,000, announced U.S. Attorney Alamdar S. Hamdani.

Xiaofei Chen admitted he arranged a fraudulent wire of $520,000 from the victims checking account. Chen opened a Bitstamp cryptocurrency exchange account using the victim’s name and driver’s license without the consent or knowledge of the victim.

Chen used the Bitstamp account and other cryptocurrency accounts to convert the proceeds into Bitcoin and laundered the Bitcoin through numerous transactions.   

U.S. District Judge Alfred H. Bennett accepted the plea and has set sentencing for Jan. 18, 2024. At that time, Chen faces a mandatory of two years in prison.

Chen was permitted to remain on bond pending that hearing.

FBI conducted the investigation. Assistant U.S. Attorneys Christian Latham and Belinda Beek are prosecuting the case.

HOUSTON – All four U.S. Attorneys from Texas converged in the Southern District for a historic event to commemorate Domestic Violence Awareness Month (DVAM), honor Texas victims and survivors as well as salute the dedication of advocates, service providers, justice professionals, first responders and law enforcement.

U.S. Attorney Alamdar S. Hamdani was joined by fellow U.S. Attorneys Damien Diggs, Leigha Simonton and Jaime Esparza of the Eastern, Northern and Western Districts, respectively, along with Gloria Aguilera Terry, CEO of the Texas Council on Family Violence (TCFV), for this historic event. This is the first press conference to include all four Texas U.S. Attorneys.

The audience heard how domestic violence takes a toll on families and affects communities, both socially and economically. The consequences of domestic violence, dating violence and intimate partner violence have a long-lasting impact. One of four women and one of 10 men will experience domestic or sexual violence in their lifetime. 

According to the TCFV Honoring Texas Victims 2022 analysis report, intimate partners killed 216 Texans in 64 Texas counties. This includes 179 women, 37 men and six LGBTQ+ victims. Of those, 96% of family members, friends and bystanders were killed with a firearm; 100% of those injured were shot; and 18 perpetrators had identified firearm prohibitions. The number of women a male partner killed has also nearly doubled in the last decade.

A crucial part of combatting domestic violence and reducing violent crimes includes enforcing federal firearm prohibitions.

The Texas U.S. Attorneys are committed to leveraging every federal resource available to go after abusers. They are collaborating with state and local partners by providing resources and initiative awareness. 

“Through our novel and long-running Domestic Violence Initiative, out violent crime prosecutors and our partner agents at Bureau of Alcohol, Tobacco, Firearms and Explosives focus on investigating and prosecuting criminals who illegally possess guns and have a history of domestic abuse,” said Simonton. “This included those with previous assault conviction against an intimate partner.”

“We are going to the shelters and letting our folks at the shelters and all the local stakeholders know we have this initiative, particularly in the Northern and Eastern Districts,” said Diggs. “We are here to help and we want to help.”   

"As U.S. Attorney for each of the four districts in Texas, it is our responsibility to deploy every available resource and forge strategic partnerships with local law enforcement and fellow prosecutors," said Esparza. "Our shared goal is to ensure victims have a clear path to safety and justice."

“At the end of the day the goal is to bring people out of the shadows, those who are being abused, to come seek help,” said Hamdani. “We want the public to know the chief federal law enforcement officers of this state stand united and firmly with domestic violence victims and survivors.”

If you or someone you know is a victim of domestic violence or need resources, please visit the resources page for the Office of Violence Against Women.

There is immediate help for domestic violence victims - Call Legal Aid for Survivors of Sexual Assault at 1-844-303-7233, Stop Abuse for Everyone at 1-512-267-7233 (or text 1-737-888-7233) or Texas Advocacy Project on their Hope Line at 1-800-374-4673 or their Pro Bono Attorney line at 1-800-374-4674.

HOUSTON – A federal jury in Houston has convicted a 47-year-old man of sex trafficking four women by means of force and of taking three women across state lines to engage in prostitution, announced U.S. Attorney Alamdar S. Hamdani.

The jury deliberated for approximately three hours before convicting Larry “Lavish” Lewis following a six-day trial.

Lewis used physical force and coercion to compel four women to engage in commercial sex in the Bissonnet street area of Houston and various cities in Texas and Louisiana. The jury also found he coerced them to cross state lines to engage in prostitution.

At trial, the victims detailed how Lewis recruited them on false promises of good money and a good life. Lewis confiscated the identification cards of two women and tightly controlled access to their hotel rooms. The women were completely dependent on him for food, lodging and basic necessities.  

Lewis’ rules dictated where and how long they worked. The women were required to give Lewis all money they earned after commercial sex dates. 

The victims detailed the consequences of breaking Lewis’ rules. He kicked one victim in the head into a window because he believed she disrespected him. During another incident, Lewis whipped the same victim with an electrical cord following an attempt to escape using his vehicle. Another victim described how Lewis broke her ribs and left bruises all over her body after receiving many beatings.

The jury ultimately did not believe defense claims that the women sought out Lewis because of his marketing expertise in the commercial sex industry. 

U.S. District Chief Judge Randy Crane presided over the trial and set sentencing for Jan. 10, 2024.  At that time, Lewis faces up to life in federal prison.

Lewis has been and will remain in custody pending sentencing.

Assistant U.S. Attorneys Sebastian A. Edwards and Christine Lu are prosecuting the case.

Texas Department of Public Safety and the Harris County District Attorney’s Office conducted the investigation with the assistance of the FBI as part of the Human Trafficking Rescue Alliance (HTRA).

HTRA law enforcement includes members of the Houston Police Department, FBI, Homeland Security Investigations, Texas Attorney General’s Office, IRS-Criminal Investigation, Department of Labor (DOL), DOL – Wage and Hour Division, Department of State, Texas Alcoholic and Beverage Commission, Texas Department of Public Safety,  Department of Homeland Security – Office of Inspector General (OIG), Social Security Administration – OIG and Sheriff’s Offices in Harris and Montgomery counties in coordination with District Attorney’s offices in Harris, Montgomery and Fort Bend Counties.

Established in 2004, the United States Attorney’s office in Houston formed HTRA to combine resources with federal, state and local enforcement agencies and prosecutors, as well as non-governmental service organizations to target human traffickers while providing necessary services to those that the traffickers victimized. Since its inception, HTRA has been recognized as both a national and international model in identifying and assisting victims of human trafficking and prosecuting those engaged in trafficking offenses.

Cardiac Imaging Inc. (CII), headquartered in Illinois, and its founder, owner, and CEO Sam Kancherlapalli, a resident of Florida, have agreed to pay a total of $85,480,000 to resolve False Claims Act allegations that they paid referring cardiologists excessive fees to supervise PET scans in violation of the Anti-Kickback Statute (AKS) and the Physician Self-Referral Law (Stark Law). CII agreed to pay $75 million, plus additional amounts based on future revenues, and Kancherlapalli agreed to pay $10,480,000. These settlements are based on their ability to pay.

“Healthcare providers that pursue patient referrals through illegal kickbacks and other unlawful financial arrangements will be held accountable,” said Principal Deputy Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to safeguard federal healthcare funds by rooting out financial relationships between healthcare providers and referring physicians that can corrupt medical decisionmaking and increase the cost of care.”

The United States alleged that between March 1, 2014, and May 31, 2023, CII and Kancherlapalli knowingly caused false or fraudulent claims to federal health care programs arising from violations of the AKS and the Stark Law. Specifically, with Kancherlapalli’s oversight and approval, CII allegedly paid kickbacks to referring cardiologists in the form of above-fair market value fees of $500 or more per hour, ostensibly for the cardiologists to supervise the PET scans for the patients they referred to CII. The United States alleged these fees substantially exceeded fair market value for the cardiologists’ services because CII paid the referring cardiologists for each hour CII spent scanning the cardiologists’ patients, including time the cardiologists were away from CII’s mobile scanning units providing care for other patients or were not even on site. CII’s fees also purportedly compensated the cardiologists for additional services beyond supervision that were not actually provided. CII purported to rely on a consultant’s fair market value analysis that the United States alleged CII knew was premised on fundamental inaccuracies about the services referring physicians provided and that the consultant ultimately withdrew.

“Paying illegal kickbacks to cardiologists so they refer patients undermines the integrity of federal healthcare programs and needlessly increases costs,” said U.S. Attorney Alamdar Hamdani for the Southern District of Texas. “Patients deserve care based on their medical need and not on a doctor or company’s financial interest or gain. This outcome emphasizes my office’s commitment to pursing justice, ensuring the public’s trust in the federal healthcare system and holding the corrupt accountable.”

“Illegal kickback payments not only corrupt the medical decision-making process but also cause harm and financial loss to Medicare and other federally funded healthcare programs,” said Special Agent in Charge Jason E. Meadows for the Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG works closely with our law enforcement partners to root out and hold accountable those who put profit and personal gain ahead of legitimate medical services.”

In connection with the settlement, CII and Kancherlapalli entered into a five-year Corporate Integrity Agreement (CIA) with the HHS-OIG. The CIA requires, among other compliance provisions, that CII implement measures designed to ensure that arrangements with referring physicians are compliant with the AKS and the Stark Law. The CIA also requires that CII implement a centralized annual risk assessment and internal review process to identify and address the AKS and the Stark Law risks associated with arrangements and retain an Independent Review Organization to perform a systems and transactions review of arrangements.

The civil settlement resolves claims brought under the qui tam or whistleblower provisions of the False Claims Act by Lynda Pinto, a former billing manager at CII. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam action also raises claims against CII’s former President and part-owner Richard Nassenstein, which are not resolved in this settlement. The qui tam case is captioned U.S. ex rel. Pinto v. Cardiac Imaging, Inc., et al., No. 18-cv-2674 (S.D. Tex.). The relator’s share of the settlement has not yet been determined.

The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the Southern District of Texas, with assistance from the HHS-OIG, the Defense Health Agency Office of Inspector General, the Railroad Retirement Board Office of Inspector General, and Veteran’s Affairs Office of Inspector General

The investigation and resolution of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the HHS at 800-HHS-TIPS (800-447-8477).

The matter was handled by Trial Attorneys Samuel R. Lehman and Jake M. Shields of the Justice Department's Civil Division, and Assistant U.S. Attorney Melissa M. Green for the Southern District of Texas.

The claims resolved by the settlement are allegations only and there has been no determination of liability.

Kancherlapalli Settlement CII Settlement

HOUSTON – Cardiac Imaging Inc. (CII), headquartered in Illinois, and its founder, owner and CEO Sam Kancherlapalli, a resident of Florida, have agreed to pay a total of $85,480,000, to resolve False Claims Act allegations that they paid referring cardiologists excessive fees to supervise PET scans in violation of the Anti-Kickback Statute (AKS) and the Physician Self-Referral Law (Stark Law).

This is the largest single district civil settlement in the history of the Southern District of Texas (SDTX).

CII agreed to pay $75 million plus additional amounts based on future revenues, while Kancherlapalli agreed to pay $10,480,000. These settlements are based on their ability to pay.

“Paying illegal kickbacks to cardiologists so they refer patients undermines the integrity of federal healthcare programs and needlessly increases costs,” said Alamdar Hamdani, U.S. Attorney for the SDTX. “Patients deserve care based on their medical need and not on a doctor or company’s financial interest or gain. This outcome emphasizes my office’s commitment to pursing justice, ensuring the public’s trust in the federal healthcare system and holding the corrupt accountable.”

“Healthcare providers that pursue patient referrals through illegal kickbacks and other unlawful financial arrangements will be held accountable,” said Principal Deputy Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to safeguard federal healthcare funds by rooting out financial relationships between healthcare providers and referring physicians that can corrupt medical decision making and increase the cost of care.”

The United States alleged that between March 1, 2014, and May 31, 2023, CII and Kancherlapalli knowingly caused false or fraudulent claims to federal health care programs arising from violations of the AKS and the Stark Law. Specifically, with Kancherlapalli’s oversight and approval, CII allegedly paid kickbacks to referring cardiologists in the form of above-fair market value fees of $500 or more per hour, ostensibly for the cardiologists to supervise the PET scans for the patients they referred to CII. The United States alleged these fees substantially exceeded fair market value for the cardiologists’ services because CII paid the referring cardiologists for each hour CII spent scanning the cardiologists’ patients, including time the cardiologists were away from CII’s mobile scanning units providing care for other patients or were not even on site. CII’s fees also purportedly compensated the cardiologists for additional services beyond supervision that were not actually provided. CII purported to rely on a consultant’s fair market value analysis that the U.S. government contends CII knew was premised on fundamental inaccuracies about the services referring physicians provided and that the consultant ultimately withdrew. 

“Illegal kickback payments not only corrupt the medical decision-making process but also cause harm and financial loss to Medicare and other federally funded healthcare programs,” said Special Agent in Charge Jason E. Meadows for the Department of Health and Human Services Office of Inspector General (DHHS-OIG). “DHHS-OIG works closely with our law enforcement partners to root out and hold accountable those who put profit and personal gain ahead of legitimate medical services.”

In connection with the settlement, CII and Kancherlapalli entered into a five-year Corporate Integrity Agreement (CIA) with DHHS-OIG. The CIA requires, among other compliance provisions, that CII implement measures designed to ensure that arrangements with referring physicians are compliant with the AKS and the Stark Law. The CIA also requires that CII implement a centralized annual risk assessment and internal review process to identify and address the AKS and the Stark Law risks associated with arrangements and retain an Independent Review Organization to perform a systems and transactions review of arrangements.

The civil settlement resolves claims brought under the qui tam or whistleblower provisions of the False Claims Act by Lynda Pinto, a former billing manager at CII. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam action also raises claims against CII’s former president and part-owner Richard Nassenstein, which are not resolved in this settlement. The qui tam case is captioned U.S. ex rel. Pinto v. Cardiac Imaging Inc., et al., No. 18-cv-2674 (S.D. Tex.). The relator’s share of the settlement has not yet been determined. 

The resolution obtained in this matter was the result of a coordinated effort between the SDTX and the Justice Department’s Civil Division - Commercial Litigation Branch, Fraud Section, and with assistance from DHHS-OIG, Defense Health Agency OIG, Railroad Retirement Board OIG and Veteran’s Affairs OIG.

The investigation and resolution of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).

Assistant U.S. Attorney Melissa M. Green handled the matter along with Commercial Litigation Branch Trial Attorneys Samuel R. Lehman and Jake M. Shields.

The claims resolved by the settlement are allegations only and there has been no determination of liability.

LAREDO, Texas – A 45-year-old woman has entered a guilty plea to bank fraud, announced U.S. Attorney Alamdar S. Hamdani.

Mirza Lydia Rodriguez admitted to defrauding Falcon International Bank in a scheme that lasted five years.

In April 2020, law enforcement began investigating Rodriguez after receiving several reports of identity theft from Zapata residents. Authorities discovered Rodriguez claimed to be a tax preparer or could assist others with unemployment benefits. Multiple victims sought assistance from Rodriguez based those representations. Rodriguez collected and stored the victims’ personal identifying information (PII) at her residence.

In October 2021, authorities conducted a search and seized tax returns, W2s, bank records, birth certificates, Social Security cards and credit cards, all in other individuals’ names. Authorities also seized multiple spiral notebooks that contained approximately 1000 pages of PII.

Law enforcement obtained copies of Rodriguez’s bank records and discovered she received direct deposits from tax refunds, COVID-19 stimulus checks and Texas Workforce Commission (TWC) unemployment benefits. All deposits were meant for other individuals to include the victims who reported the theft.

During her plea, Rodriguez admitted to submitting a fraudulent application to Laredo Housing Authority (LHA) for public assistance in May 2015. She used her banking information and a relative’s PII on the application without permission. The application was approved, and Falcon International Bank, which maintains LHA’s accounts, began disbursing housing assistance payments to Rodriguez.

The bank disbursed 57 housing and 43 utility assistance payments totaling $32,715.

Additionally, Rodriguez received 16 deposits addressed to three individuals totaling $30,505. The victims admitted they used Rodriguez’s services for assistance with unemployment benefits and never received any money. The TWC issued letters to the victims indicating they owed thousands of dollars.

Part of Rodriguez’s guilty plea includes restitution payments to LHA and TWC.

U.S. District Judge Diana Saldaña accepted the plea and will sentence Rodriguez at a later date. At that time, she faces up to 30 years in federal prison.

Rodriguez has been and will remain in custody pending sentencing.

The FBI, Texas Department of Public Safety-Texas Rangers, Zapata County Sheriff’s Office and Housing and Urban Development-Office of Inspector General conducted the investigation with assistance from the Drug Enforcement Administration, Federal Deposit Insurance Corporation, TWC and the LHA.

Assistant U.S. Attorney Brian Bajew is prosecuting the case.

HOUSTON – A tax service operator has admitted to willfully preparing a false 2018 joint income tax return, announced U.S. Attorney Alamdar S. Hamdani. 

As part of her plea, Lynettia Profit admitted that from 2016 to 2019, she operated JNL Tax Services in Houston. She admitted she often placed false education credits and Schedule C items on the returns she prepared, generating larger refunds to which her clients were not entitled. 

According to the plea, she would make money by charging preparation fees that were deducted from refunds paid to clients.   

Profit pleaded guilty to an information charging her with one count of aiding or assisting in the preparation of a false return. Specifically, she admitted to placing two false American Opportunity Tax Credits in the amount of $2,500 each on the joint return as well as $70,743 in false expenses that were listed on the Schedule C. This resulted in a tax loss of approximately $22,101. 

Profit took responsibility of $336,847 in loss to the IRS and has agreed to pay that amount in restitution. 

U.S. District Judge Lee H. Rosenthal will impose sentencing Jan. 24, 2024. At that time, she faces up to three years in prison and a possible $250,000 maximum fine. 

She was permitted to remain on bond pending that hearing.

IRS Criminal Investigation conducted the investigation. Assistant U.S. Attorneys Brad Gray and Andrew Swartz are prosecuting the case.

HOUSTON – U.S. Attorney’s Offices in two districts have resolved a civil investigation into RPS Group Inc, a global professional services firm, that will result in a recovery of over $465,000, announced U.S. Attorney Alamdar S. Hamdani and Zachary A. Cunha, U.S. Attorneys for the Southern District of Texas and Rhode Island, respectively. 

RPS Group Inc. held several contracts with the federal government. Between June 2011 and July 2020, in order to maximize revenue and avoid hitting budgetary ceilings, the company unlawfully engaged in a practice of moving recorded labor hours between government projects with different funding sources, according to the allegations in the investigation. RPS also allegedly submitted invoices for work that was not performed on government contracts and falsely inflated employee billing rates. These practices occurred across numerous government contracts and resulted in the submission of false invoices to multiple government agencies, according to the allegations.

The conduct was brought to the government’s attention both through an RPS  corporate disclosure and through complaints four former employees had raised. As part of a civil settlement, RPS Group Inc. will pay $465,293.

At the time of the conduct alleged in this matter, RPS Group’s headquarters in the United States were located in Houston with a subsidiary in North Kingstown, Rhode Island. Another company has since acquired it.

Assistant U.S. Attorneys Jill Venezia and Bethany Wong of the Southern District of Texas and Rhode Island, respectively, litigated this matter.

Department of Commerce - Office of Inspector General (OIG), Army Criminal Investigation Division, Coast Guard Investigative Service, General Services Administration – OIG, National Aeronautics and Space Administration – OIG, Department of Defense Criminal Investigative Service, Environmental Protection Agency – OIG, Department of Interior - OIG, and Naval Criminal Investigative Service.

HOUSTON – Attorney General Merrick B. Garland has appointed U.S. Attorney Alamdar S. Hamdani to serve on the Attorney General’s Advisory Committee of U.S. Attorneys (AGAC).

The AGAC was created in 1973 and advises the Attorney General on matters of policy, procedure and management impacting the offices of the U.S. Attorneys and elevates the voices of U.S. Attorneys on essential matters facing the Department of Justice.

“U.S. Attorneys work every day throughout the country to advance our mission of upholding the rule of law, keeping our country safe, and protecting civil rights,” said Garland. “I am grateful for the perspective the newest members of the committee will provide on behalf of federal prosecutors across the country and the communities they serve.”

“It is an honor to be chosen to serve on the AGAC,” said Hamdani. “I look forward to learning from and serving with my fellow AGAC members as we advise the Attorney General and the Department of Justice’s leadership.”

U.S. Attorney Hamdani will serve alongside chair Damian Williams of the Southern District of New York, vice chair Gary Restaino for the District of Arizona and newest members Alexander M.M. Uballez for the District of New Mexico, Breon Peace for the Eastern District of New York, Kenneth Parker for the Southern District of Ohio, Natalie K. Wight for the District of Oregon, Eric G. Olshan for the Western District of Pennsylvania and Christopher R. Kavanaugh for the Western District of Virginia as well as Ryan Buchanan of the Northern District of Georgia, Gregory K. Harris of the Central District of Illinois, Andrew M. Luger of the District of Minnesota and Darcie N. McElwee of the District of Maine.  

President Biden nominated Hamdani to serve as U.S. Attorney for this district Nov. 14, 2002, upon the recommendation of U.S. Senators John Cornyn and Ted Cruz. The full Senate unanimously confirmed his appointment Dec. 6, 2022. He was sworn in Dec. 12, 2022.  

As U.S. Attorney, Hamdani is the chief federal law enforcement officer in the Southern District of Texas (SDTX), responsible for prosecuting and defending the interests of the United States in the seventh largest district in the nation.

Hamdani has been with the Department of Justice since 2008. Most recently, he has been an Assistant U.S. Attorney (AUSA) with the SDTX, primarily responsible for the investigation and prosecution of national security and official corruption crimes. From 2010 to 2014, Hamdani served in the Counterterrorism Section of the Department of Justice’s National Security Division, holding the position of deputy chief from 2012 to 2014. Prior to that, he was an AUSA in the Eastern District of Kentucky.

The SDTX typically prosecutes more cases against more defendants than most other U.S. Attorney’s Offices nationwide, representing 43 counties and nine million people and covering 44,000 square miles. This district currently comprises seven U.S. District Court divisions with federal district courts in Houston, Galveston, Victoria, Corpus Christi, Brownsville, McAllen and Laredo. The U.S. Attorney's office, headquartered in Houston, has branch offices in all seven divisions.

A California woman pleaded guilty yesterday to her role in a counterfeit savings bond scheme.

According to court documents, Summer Marie Creech, 45, of Fontana, conspired with others to create, pass, and transfer counterfeit Department of the Treasury Series I savings bonds at financial institutions in the Southern District of Texas and elsewhere. Creech forged counterfeit Series I savings bonds using genuine bond numbers and then sent them to her co-conspirators, who negotiated them at financial institutions and shared the profits with Creech. To pass the counterfeit bonds, the co-conspirators used means of identification belonging to others without their knowledge or consent. During the conspiracy, Creech and others passed over $1.6 million in counterfeit Series I savings bonds.

Creech pleaded guilty to conspiracy to make, pass, and transfer counterfeit U.S. securities and passing counterfeit U.S. securities. She is scheduled to be sentenced on Dec. 20 and faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

One of Creech’s co-conspirators, Daniel Alan Lewis, previously pleaded guilty to conspiracy to make, pass, and transfer counterfeit U.S. securities and passing counterfeit U.S. securities. He is scheduled to be sentenced on Oct. 12.

Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas, and Special Agent in Charge Craig S. Larrabee of Homeland Security Investigations (HSI) made the announcement.

HSI Rio Grande Valley Office is investigating the case, with assistance from the U.S. Secret Service, Department of the Treasury’s Office of Inspector General, and U.S. Attorney’s Office for the Central District of California.

Trial Attorney David D. Hamstra of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Edgardo J. Rodriguez for the Southern District of Texas are prosecuting the case.

HOUSTON – A local rehabilitation center has agreed to a settlement under the Americans with Disabilities Act (ADA) to ensure it provides appropriate auxiliary aids and services to individuals who are deaf or hearing impaired when providing medical services, announced U.S. Attorney Alamdar S. Hamdani.

In November 2021, authorities received a complaint alleging Park Manor of CyFair failed to provide effective communication to an individual who is deaf and uses American Sign Language (ASL) as his primary means of communication. Park Manor did not provide a qualified ASL interpreter, as the ADA defines, to communicate information related to his medical care, symptoms and treatment plan.

Under the settlement agreement, Park Manor will revamp its training for new and existing employees regarding interpreter services, have specific and uniform criteria for determining when an interpreter is needed and what interpreter services are adequate. They will also keep detailed records of these decisions and accommodations.

“My office is committed to protecting the rights of people who have not traditionally had a voice,” said Hamdani. “Having equal access to health care services - which includes the ability to effectively communicate with your health care provider - is a fundamental right. It must be accessible to all. If not, my office will investigate and bring enforcement actions against you to ensure compliance with the ADA.”

Assistant U.S. Attorney Myra Siddiqui handled the matter.

This case is a part of the Department of Justice’s Barrier-Free Health Care Initiative, which seeks to enforce the ADA’s prohibition of discrimination against individuals with disabilities by health care providers. Through the Barrier-Free Health Care Initiative, U.S. Attorneys’ offices across the nation and the Department of Justice - Civil Rights Division target their enforcement efforts on a critical area for individuals with disabilities - access to medical services and facilities. The Barrier-Free Health Care Initiative is a multi-phase initiative that includes effective communication for people who are deaf or have hearing loss, physical access to medical care for people with mobility disabilities and equal access to treatment for people who have HIV/AIDS.

The Department of Justice has a number of publications available to assist entities to comply with the ADA, including a Business Brief on Communicating with People Who Are Deaf or Hard of Hearing in Hospital Settings. Visit the ADA for more information and to access these publications. ADA Complaints may be filed Department of Justice or within the Southern District of Texas.

LAREDO, Texas - A 54-year-old Austin resident has been indicted for health care fraud and money laundering, announced U.S. Attorney Alamdar S. Hamdani.

Dr. Michael Hochman made his initial appearance today and is set for arraignment Oct. 12 before U.S. Magistrate Judge Christopher dos Santos.

A federal grand jury returned the five-count indictment Sept. 27.

According to court documents, Hochman is an ophthalmologist who owned and operated Michael A. Hochman P.A. and Laredo Laser & Surgery Ltd. in Laredo.

The charges allege Hochman falsely diagnosed vulnerable patients with ophthalmological diseases and various degenerative eye conditions. Hochman allegedly directed optometry staff to conduct fraudulent, repetitive and excessive medical procedures on patients to maximize profits.

According to the indictment, Hochman caused Medicare and other health care benefit programs to remit payment for millions of dollars in proceeds into various corporate and personal bank accounts.

The false and fraudulent claims Hochman allegedly submitted to Medicare, Medicaid and Tricare totaled $402,536,174. As a result of the false and fraudulent claims, Medicare, Medicaid and Tricare paid approximately $13,317,914, according to the charges.

The indictment also alleges Hochman used the proceeds of the fraud scheme to purchase a private airplane, luxury vehicles, high-end antiques, collectible coins and other luxury items.  

If convicted, Hochman faces up to 10 years in prison for one count of health care fraud. He also faces four counts of money laundering, which carries a penalty of up to 20 years imprisonment. All charges also carry a possible $250,000 maximum fine.

The FBI, Texas Attorney General’s Office - Medicaid Fraud Control Unit, Defense Criminal Investigative Services, Department of Health and Human Services – Office of Inspector General (OIG) and the Veteran Affairs – OIG conducted the investigation. Assistant U.S. Attorneys Tina Ansari, Cynthia Villanueva, Tyler White and Grace Murphy are prosecuting 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.

HOUSTON – Two Missouri City home health agency owners have been ordered to federal prison after admitting to defrauding millions from Medicare, announced U.S. Attorney Alamdar S. Hamdani.

Vincent Nwabeke, 72, pleaded guilty April 20 to false statements in a health care matter, while Victoria Nwabeke, 70, admitted to conspiracy to commit health care fraud Sept. 16, 2019.

U.S. District Judge Alfred H. Bennett has now ordered Victoria Nwabeke to serve 48 months in federal prison followed by three years of supervised release. She must also pay $8,523,917.11 in restitution to Medicare. Vincent Nwabeke was previously sentenced to 12 months and one day of imprisonment and ordered to pay $1,084,996 in restitution to Medicare.

The Nwabekes co-owned Vital Ambulatory Healthcare Inc. from 2012 to 2018, Victoria Nwabeke obtained patient referrals by paying kickbacks to marketers and patients and bribing physicians to authorize medically unnecessary home health services for Vital patients. She also admitted to billing Medicare over $8 million in fraudulent claims for home health services.

Vincent Nwabeke was Vital’s Chief Financial Officer. He admitted that in 2018 he filed a fraudulent cost report to Medicare attempting to disguise the kickback payments his wife made as legitimate business expenses.

The Nwabekes were permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.

The FBI, Department of Health and Human Services‐Office of Inspector General and Texas Attorney General’s Medicaid Fraud Control Unit conducted the investigation. Special Assistant U.S. Attorney Kathryn Olson and DOJ Trial Attorney Drew Pennebaker are prosecuting the case.

GALVESTON, Texas - A 28-year-old resident of Webster has been sentenced in a meth conspiracy,  announced U.S. Attorney Alamdar S. Hamdani.

Omar Lopez III pleaded guilty Feb. 15 to conspiracy to possess with intent to distribute five or more grams of meth or 50 or more grams of a mixture or substance containing a detectable amount of meth.

U.S. District Judge Jeffrey Brown has now ordered him to serve a total of 174 months in federal prison.

The investigation focused upon a group of meth distributors and their source of drugs who operated in Galveston County.

Lopez worked within the drug trafficking organization by supplying meth others had distributed.

He will report to a U.S. Bureau of Prisons facility to be determined in the near future.

The Drug Enforcement Administration conducted the investigation with the assistance of the Galveston County Sheriff’s Office and Galveston Police Department. Assistant U.S. Attorney Kenneth Cusick is prosecuting the case.

BROWNSVILLE, Texas - A 45-year-old California woman has pleaded guilty to conspiring to make, pass and transfer counterfeit U.S. savings bonds and passing counterfeit savings bonds.

Summer Marie Creech and others conspired to create counterfeit Department of the Treasury Series I savings bonds. They then passed the counterfeit bonds at financial institutions using other people’s identities and split the proceeds. 

As part of her plea, Creech admitted that beginning in or around 2019 she learned how to acquire genuine Series I savings bonds numbers. She then used computer software and printers to forge counterfeit bonds. She then sent the bonds to co-conspirators who would pass them at financial institutions and share the proceeds with her.

During the course of the conspiracy, Creech admitted she and others passed over $1.6 million in counterfeit Series I savings bonds.

U.S. District Judge Roland Olvera accepted the plea and set sentencing for Dec. 20. At that time, Creech faces up to 20 years in federal prison and a possible $250,000 maximum fine.

Creech was permitted to remain on bond pending sentencing.

One of Creech’s co-conspirators, Daniel Alan Lewis, 58, California, previously pleaded guilty to conspiracy to make, pass and transfer counterfeit U.S. securities and passing counterfeit U.S. securities. He is scheduled to be sentenced Oct. 12.

Homeland Security Investigations conducted the investigation with the assistance of the Secret Service, Department of the Treasury - Office of Inspector General and the U.S. Attorney’s Office for the Central District of California. Assistant U.S. Attorney Edgardo J. Rodriguez is prosecuting the case along with Trial Attorney David D. Hamstra of the Justice Department’s Criminal Division.

CORPUS CHRISTI, Texas – A 38-year-old local man has been ordered to federal prison for drug trafficking and weapons charges, announced U.S. Attorney Alamdar S. Hamdani.

Raul Cedillo Jr. pleaded guilty Jan. 3, 2022, to possession of meth with intent to distribute and possession of firearms in furtherance of drug trafficking.

U.S. District Judge David S. Morales has now ordered Cedillo to serve 154 months in prison to be immediately followed by five years of supervised release.

The investigation began after law enforcement saw several posts on his personal Facebook page appeared to be advertising various controlled substances for sale, complete with photographs of Cedillo’s “inventory.” The posts included prices for meth by quantity, such as “"$55 balls, $80 qrtrs, $ 150 half, $275 ounce." 

The Facebook posts led to the September 2021 search of Cedillo’s apartment where law enforcement seized approximately three kilograms of meth, 1.3 kilograms of pills, six firearms and a large amount of U.S. currency.

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

Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives and the Corpus Christi Police Department conducted this Organized Crime Drug Enforcement Task Forces (OCDETF) investigation.

OCDETF identifies, disrupts and dismantles the highest-level drug traffickers, money launderers, gangs and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage.

Assistant U.S. Attorney Brittany Jensen prosecuted the case.

BROWNSVILLE, Texas – A 38-year-old Harlingen resident and former claims specialist with the Social Security Administration (SSA) has pleaded guilty to theft of government property, announced U.S. Attorney Alamdar S. Hamdani. 

Lee Marvin Nichols admitted to creating fictitious profiles for two children that did not exist. He linked the profiles to a recently deceased man and disabled woman living in Mexico in an attempt to create a survivor benefits application. 

Nichols ensured that the debit cards for the children’s benefits were sent to the address of someone with whom he was associated. He would then use the debit cards to make regular withdrawals at ATMs. When making those withdrawals, he attempted to disguise himself by using hats pulled down over his face, sunglasses, balaclavas and other clothing to conceal his appearance. 

In addition, the IRS issued economic stimulus payments of $1,400 to each fictitious child. 

As part of his plea, Nichols took responsibility for over $75,000 in loss to the federal government. He also agreed to pay $82,516 in restitution to the SSA and $2,800 in restitution to the IRS. 

U.S. District Judge Rolando Olvera will impose sentencing Dec. 27. At that time, Nichols faces up to 10 years in federal prison and a $250,000 maximum fine. 

The SSA-Office of Inspection General, Treasury Inspector General for Tax Administration and IRS Criminal Investigation conducted the investigation. Assistant U.S. Attorneys Brad Gray, Ben Sandel, Andrew Swartz and Jose Esquivel are prosecuting the case.

HOUSTON –The head of a multimillion-dollar COVID-19 relief fraud ring and six of his co-conspirators have been sentenced for fraudulently obtaining more than $20 million in forgivable Paycheck Protection Program (PPP) loans that the Small Business Administration (SBA) guaranteed under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

Amir Aqeel, 54, Houston, was sentenced Oct. 2 to 15 years in prison for leading the conspiracy and at least 14 other individuals to submit more than 75 fraudulent PPP loan applications in 2020. In the applications, they falsified the number of employees and the average monthly payroll expenses of the applicant businesses and submitted fraudulent bank records and/or fake federal tax forms in support of the PPP loan applications. Some were paid large kickbacks in exchange for their assistance with the false and fraudulent PPP loan applications.

“Amir Aqeel engaged in one of the largest PPP conspiracies in the country,” said U.S. Attorney Alamdar S. Hamdani. “He and his cohorts stole millions from the public fund, using that money to buy houses, a Porsche, even a Lamborghini, all while taking advantage of programs intended to help those struggling during the pandemic. These sentences send a strong message to scammers looking for a quick and easy buck in the Southern District of Texas; you need to look elsewhere.”

“During a time of unprecedented national peril, these defendants took advantage of a pandemic and stole millions of dollars in federal funds intended to help businesses keep their employees paid and their doors open,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “The sentences demonstrate that the Department and law enforcement have and will continue to hold individuals accountable for committing fraud on the government.”

“I salute the prosecutors and agents who exposed this fraud ring, brought these defendants to justice, and worked to return stolen funds to the American people,” said Justice Department Director of COVID-19 Fraud Enforcement Michael Galdo. “The Department will continue to work with our law enforcement partners to bring those who committed pandemic benefit fraud to justice and use all appropriate tools to recover stolen pandemic relief funds.”

The conspirators also laundered a portion of the fraudulent proceeds by writing checks from companies that received PPP loans to fake employees. These fake paychecks were cashed at Fascare International Inc. dba Almeda Discount Store (Almeda), a company Azeemuddin owned. In total, more than 1,100 fake paychecks for more than $3 million in fraudulent PPP loan proceeds were cashed at Almeda.

“SBA-OIG will aggressively root out bad actors in SBA’s pandemic response programs and bring them to justice,” said Special Agent in Charge Brady Ipock of the SBA Office of Inspector General (SBA-OIG) Central Region. “These sentences demonstrate there are significant consequences for conspiring to fraudulently access SBA programs and steal from taxpayers. I want to thank the U.S. Attorney’s office and our law enforcement partners for their support and dedication to pursuing justice in this case.”

“One unfortunate aspect of the pandemic relief programs has been how many people and institutions, including the Federal Home Loan Banks, were negatively affected by unscrupulous criminals who targeted a program meant to help all Americans at a critical time,” said Special Agent in Charge Catherine Huber of the Federal Housing Finance Agency Office of Inspector General’s (FHFA-OIG) Central Region. “We are proud to work with our partner agencies to investigate and stamp out these schemes.”

“While the rest of our country was reeling from the effects of an unprecedented global health crisis, these individuals conspired to fraudulently obtain and launder millions of taxpayer dollars from an emergency fund that was intended to help keep struggling businesses and employees afloat,” said Special Agent in Charge Mark Dawson, Homeland Security Investigations (HSI) Houston. “Working in conjunction with our federal law enforcement partners, we were able to uncover their scheme and hold them accountable for exploiting these government programs for their own profit.”

Federal agents also executed 45 seizure warrants in conjunction with the case and have seized, among other items, a residence, a Porsche and a Lamborghini purchased with illegally obtained funds.

“Today, Aqeel and six of his co-conspirators in this case were brought to justice for their roles in a fraudulent scheme that swindled millions of dollars from the Paycheck Protection Program, which was created to assist struggling businesses during the COVID-19 pandemic,” said Special Agent in Charge Anand Ramlall of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG) Dallas Region. “The FDIC-OIG, working with our law enforcement partners, will continue to pursue and hold accountable those who took advantage of these programs and threatened to undermine the integrity of our nation’s banking system.”

“The Treasury Inspector General for Tax Administration continues to aggressively pursue those who endeavor to defraud programs afforded to the American people under the CARES Act,” said Special Agent in Charge Gary Smith of the Treasury Inspector General for Tax Administration (TIGTA) Gulf States Field Division. “We appreciate the efforts of the Justice Department and our law enforcement partners in this effort.”

Five others had previously pleaded guilty and were sentenced today for their roles in the loan fraud scheme. Khalid Abbas, 57, Richmond, and Richard Reuth, 60, Spring, both received two and a half years in prison, while Rifat Bajwa, 54, Richmond, Siddiq Azeemuddin, 44, Naperville, Illinois, and Pardeep Basra, 54, Houston, were sentenced to three years, two years and three years and five months in prison, respectively.

A federal jury convicted Abdul Fatani, 57, Richmond, of one count of conspiracy to commit wire fraud, one count of wire fraud and one count of money laundering in February. He was sentenced to three years in prison.

The SBA-OIG, FHFA-OIG, HSI, FDIC-OIG and TIGTA are investigating the cases. 

Assistant U.S. Attorneys Rodolfo Ramirez and Kristine Rollinson are prosecuting the cases along with Trial Attorneys Louis Manzo, Della Sentilles, Kate McCarthy and Spencer Ryan of the Criminal Division’s Fraud Section.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.