Southern District of Texas

The head of a multimillion-dollar COVID-19 relief fraud ring and six of his co-conspirators were 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.

According to court documents, Amir Aqeel, 54, of Houston, was sentenced yesterday to 15 years in prison and ordered to forfeit $5,583,111.48 for leading the conspiracy, and for conspiring with at least 14 other individuals to submit 75 fraudulent PPP loan applications in 2020. In the applications, the defendants falsified the number of employees and the average monthly payroll expenses of the applicant businesses and submitted fraudulent bank records and fake federal tax forms in support of the PPP loan applications. Aqeel paid some of the defendants large kickbacks in exchange for their assistance with the false and fraudulent PPP loan applications.

“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 Director of COVID-19 Fraud Enforcement Michael Galdo of the Justice Department. “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.”

“Amir Aqeel engaged in one of the largest PPP conspiracies in the country,” said U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas. “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.”  

The defendants also laundered a portion of the fraudulent proceeds by writing checks from companies that received PPP loans to fake employees. The defendants cashed these fake paychecks at Fascare International Inc., dba Almeda Discount Store (Almeda), a company that Siddiq Azeemuddin owned. In total, the defendants cashed more than 1,100 fake paychecks for more than $3 million in fraudulent PPP loan proceeds 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 of 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, and Rifat Bajwa, 54, both of Richmond, Texas, were sentenced to two and a half years and three years in prison, respectively. Azeemuddin, 44, of Naperville, Illinois, was sentenced to two years in prison. Pardeep Basra, 54, of Houston, was sentenced to three years and five months in prison. Richard Reuth, 60, of Spring, Texas, was sentenced to two and a half years in prison.

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

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

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

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.

HOUSTON – A 36-year-old man has been ordered to prison for illegally entering an aircraft area in violation of security requirements to commit a felony therein, announced U.S. Attorney Alamdar S. Hamdani.

Allan Leon Goins III pleaded guilty May 24.

U.S. District Judge Lee Rosenthal has now ordered Goins to serve 12 months and a day in federal prison to be immediately followed by three years of supervised release. The court also ordered him to pay $2,276.48 in restitution.

Goins admitted he willfully breached and entered the restricted airport operations area at Houston Bush Intercontinental airport on Nov. 2, 2021. The restricted area services domestic and foreign air carriers. He evaded posted security procedures, fencing and restricted areas.

Additionally, Goins stole an Atlantic Aviation Inc. uniform, utility cart and caused damage to the cart. He evaded security and authorized personnel efforts to apprehend him causing a pursuit to ensue for over an hour in dark and foggy conditions. Authorities had to shut down airport runways, taxiways and the West complex operations for approximately two hours.   

Ultimately, law enforcement located and arrested Goins, at which time he said they, “should have shot him.” On Nov. 5, 2021, authorities conducted a search on articles of clothing found in the area Goins was apprehended which revealed a loaded A Walther PPS 9mm caliber pistol.

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

The FBI conducted the investigation with the assistance of Houston Airport System, Houston Police Department and Houston Fire Department. Assistant U.S. Attorney Joe Porto prosecuted the case.

HOUSTON - Five Texas men have pleaded guilty to their participation in a scheme to fraudulently obtain and launder millions of dollars in forgivable Paycheck Protection Program (PPP) loans that the guaranteed by the Small Business Administration (SBA) guaranteed under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

According to court documents, Muhammad Anis, 55, Nishant Patel, 41, Harjeet Singh, 49, all of Houston, and Arham Uddin, 27, and Ammas Uddin, 30, both of Richmond, engaged in a conspiracy to defraud the SBA and certain SBA-approved PPP lenders by submitting false and fraudulent PPP loan applications. All five also assisted in laundering the fraudulently obtained PPP loan funds by supplying co-conspirators with blank, endorsed checks, which were made payable to people posing as employees of the companies that received the PPP loan, but who were in fact not employees. These fake paychecks were then cashed at check cashing stores that other members of the conspiracy or others controlled.

As part of the scheme, Anis obtained a false and fraudulent PPP loan in the amount of approximately $483,333; Patel obtained a false and fraudulent PPP loan in the amount of approximately $474,993; Singh obtained two false and fraudulent PPP loans for a total of approximately $937,379; Arham Uddin obtained a false and fraudulent PPP loan in the amount of approximately $491,664; and Ammas Uddin obtained a false and fraudulent PPP loan in the amount of approximately $498,415.

Anis, Patel, Singh, Arham Uddin and Ammas Uddin each pleaded guilty to one count of conspiracy to commit wire fraud. They are scheduled to be sentenced Jan. 4, 2024. At that time, each face up to five years in prison.

In addition to these five, one other individual was convicted at trial for his involvement in the scheme and 15 other individuals have pleaded guilty to their involvement in the loan fraud scheme.

The SBA Office of Inspector General (OIG), Federal Housing Finance Agency OIG, Homeland Security Investigations, Federal Deposit Insurance Corporation – OIG and Treasury Inspector General for Tax Administration conducted the investigation.

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.

Five Texas men pleaded guilty today to their participation in a scheme to fraudulently obtain and launder millions of dollars in forgivable Paycheck Protection Program (PPP) loans that the Small Business Administration (SBA) guaranteed under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

According to court documents, Muhammad Anis, 55, Nishant Patel, 41, Harjeet Singh, 49, all of Houston, and Arham Uddin, 27, and Ammas Uddin, 30, both of Richmond, engaged in a conspiracy to defraud the SBA and certain SBA-approved PPP lenders by submitting false and fraudulent PPP loan applications. All five defendants also assisted in laundering the fraudulently obtained PPP loan funds by supplying co-conspirators with blank, endorsed checks, which were made payable to people posing as employees of the companies that received the PPP loan, but who were in fact not employees. These fake paychecks were then cashed at check cashing stores that other members of the conspiracy controlled.

As part of the scheme, Anis obtained a false and fraudulent PPP loan in the amount of approximately $483,333; Patel obtained a false and fraudulent PPP loan in the amount of approximately $474,993; Singh obtained two false and fraudulent PPP loans for a total of approximately $937,379; Arham Uddin obtained a false and fraudulent PPP loan in the amount of approximately $491,664; and Ammas Uddin obtained a false and fraudulent PPP loan in the amount of approximately $498,415.

Anis, Patel, Singh, Arham Uddin, and Ammas Uddin each pleaded guilty to one count of conspiracy to commit wire fraud. They are scheduled to be sentenced on Jan. 4, 2024, and each face a total maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

In addition to these five defendants, one other individual was convicted at trial for his involvement in the scheme, and 15 other individuals have pleaded guilty to their involvement in the loan fraud scheme.

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, Special Agent in Charge Brady Ipock of the SBA Office of Inspector General (SBA-OIG) Central Region, Special Agent in Charge Catherine Huber of the Federal Housing Finance Agency Office of Inspector General (FHFA-OIG), Special Agent in Charge Mark B. Dawson of Homeland Security Investigations (HSI) Houston, Special Agent in Charge Anand Ramlall of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG) Dallas Region, and Special Agent in Charge Gary Smith of the Treasury Inspector General for Tax Administration (TIGTA) made the announcement.

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

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

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.

HOUSTON – The owner of Montalvo Tax Service has been ordered to federal prison, announced U.S. Attorney Alamdar S. Hamdani.

Jean Montalvo pleaded guilty June 30 to one count of making and subscribing a false return. 

U.S. District Judge David Hittner varied upward and ordered Montalvo to serve 36 months in federal prison to be immediately followed by one year of supervised release. At the hearing, the court heard how she suffered from numerous medical conditions and was sorry for her actions. However, Judge Hittner imposed the longer sentence due to her criminal history and the loss amount in the case. The court also ordered the defendant to pay $508,350 in restitution.   

As part of her plea, Montalvo admitted she began filing tax returns under her business in Angleton in 2010. She charged a fixed fee and would either collect her from her clients’ income return or from a direct payment. 

From 2014 through 2016, Montalvo willfully failed to report a portion of the amount she received for customer fees. As a result of her scheme, the IRS suffered a loss of $197,136. 

She also filed approximately 58 federal income tax returns for the calendar years 2014 through 2017 which contained false and fraudulent items. Some of those included charitable contributions, qualified fuel property, business meals, business mileage and entertainment expenses. Based on these false and fraudulent filings, there was an additional tax harm of $311,214. 

Montalvo was taken into custody after the sentencing where she will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

IRS Criminal Investigation conducted the investigation. Assistant U.S. Attorneys Rodolfo Ramirez and James Hu are prosecuting the case.

HOUSTON – A 33-year-old Houston resident and repeat violent felon has been ordered to prison for illegally possessing a firearm, announced U.S. Attorney Alamdar S. Hamdani.

Joseph Terrell Goody pleaded guilty May 25.

U.S. District Judge Alfred H. Bennett has now ordered Goody to serve 57 months in federal prison to be immediately followed by two years of supervised release.

On Sept. 26, 2020, law enforcement stopped Goody for traffic violations. At that time, they found him to be holding an assault rifle loaded with 30 rounds of ammunition.

A struggle ensued, but authorities were able to subdue detain Goody and secure the weapon.

The investigation revealed Goody has served multiple state prison sentences for felony convictions including robbery, burglary of a habitation, continuous assault of a family member and possession of a controlled substance. As such, he is prohibited per federal law of possessing firearms or ammunition.

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

The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Houston Police Department conducted the investigation. Assistant U.S. Attorney Stuart Tallichet prosecuted the case.

CORPUS CHRISTI, Texas – A 49-year-old Alamo resident has been sentenced to prison for selling eight kilograms of cocaine, announced U.S. Attorney Alamdar S. Hamdani.

Daniel Zintura Sr. pleaded guilty May 25 to possession with intent to distribute cocaine.

U.S. District Judge Nelva Gonzales Ramos has how ordered Zintura to serve 151 months in federal prison to be immediately followed by five years of supervised release. At the hearing, the court heard additional evidence regarding Zintura’s criminal history which included a prior federal drug trafficking conviction for which he was on supervised release at the time he committed this offense. In handing down the sentence, the court noted Zintura’s repeated criminal conduct, the large amount of narcotics involved in his case and his prior conviction for the same offense. Judge Ramos also noted how drugs can destroy communities.

In March 2022, Zintura arranged for the transportation of eight kilograms of cocaine across the United States to Maryland for him. On March 17, 2022, he met another individual at a local home improvement store to hand off the cocaine to be transported to Houston. Law enforcement immediately arrested him and took him into custody.  

Zintura 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 Barbara J. De Peña prosecuted the case.

A hospice medical director was sentenced yesterday to four years and two months in prison for his role in a scheme that involved the submission of over $150 million in false and fraudulent claims to Medicare for hospice and other health care services.

According to court documents, from 2009 to 2018, Jesus Virlar-Cadena, 52, served as the medical director of the Merida Group, a large health care company that operated dozens of locations throughout Texas. Evidence at the trial of co-defendants Rodney Mesquias, Henry McInnis, and Francisco Pena, showed that the Merida Group marketed their hospice programs through a group of companies known as the Merida Group. They enrolled patients with long-term incurable diseases, such as Alzheimer’s and dementia, as well as patients with limited mental capacity who lived at group homes, nursing homes, and in housing projects. In some instances, Merida Group marketers falsely told patients they had less than six months to live. They also sent chaplains to the patients based on the false pretense they were near death.

In order to bill Medicare for these services, the Merida Group hired Virlar and other medical directors, but made payment of their medical director fees contingent upon an agreement to certify unqualified patients for hospice. In addition to regular medical director payments, Virlar received luxury trips, bottle service at exclusive nightclubs, and other perks in exchange for his certification of unnecessary hospice patients. In exchange for these illegal kickbacks, Virlar himself certified over $18 million in unnecessary hospice services as part of the over $150 million conspiracy.   

Mesquias was previously sentenced to 20 years in prison and McInnis was previously sentenced to 15 years in prison. Pena passed away before sentencing.

Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Alamdar Hamdani for the Southern District of Texas, Special Agent in Charge Jason E. Meadows of the Department of Health and Human Services Office of Inspector General (HHS-OIG), and Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division made the announcement.

HHS-OIG, the FBI, and Texas Health and Human Services Commission investigated the case.

Principal Assistant Chief Jacob Foster and former Trial Attorney Kevin Lowell of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Andrew Swartz for the Southern District of Texas prosecuted the case.

HOUSTON – All people charged in a conspiracy to commit mail fraud have been ordered to federal prison, announced U.S. Attorney Alamdar S. Hamdani.

Indian citizens MD Azad, 26, Sumit Kumar Singh, 30, Himanshu Kumar, 26, MD Hasib, 28, and Anirudha Kalkote, 26, admitted they participated in a fraud ring from 2019-2020 which operated out of various cities including Houston. All illegally resided in Houston. 

U.S. District Judge Kenneth Hoyt has now ordered Hasib to serve 78 months in federal prison. The court previously sentenced Singh, Kumar and Kalkote each also to 78 months, while Azad, the highest ranking member of the conspiracy in the United States, received 188 months. Not U.S. citizens, all are expected to face removal proceedings following the prison terms. 

At the respective hearings, the court heard evidence from victim impact letters that described the suffering that almost 200 victims, many of whom were elderly, had endured because of this fraud. Some victims lost their life savings. Others were threatened when they refused to continue to pay and described continuing fear and ongoing anxiety after being watched through the video cameras on their home computers. In handing down the sentences, the court noted that the victim letters sounded like a “horror show.” 

“Anxiety, fear, humiliation and devastating financial loss are what these victims endured,” said Hamdani. “The criminals were relentless, preying on the elderly, often revictimizing their targets. These scammers from India didn’t care what impact their scheme had; all they cared about was money and a lot of it. Thankfully, the court imposed a just sentence for each of these ruthless fraudsters, bringing the victims peace and closure.”

“The sentences imposed for the defendants in this case should serve as a harbinger for anyone attempting to defraud and manipulate  our nation’s elderly. Prison awaits you,” said Special Agent in Charge Ramsey E. Covington of IRS Criminal Investigation (CI). “This was an effort that combined the investigative skills of multiple law enforcement agencies that  partnered together to uphold our commitment to the Elder Justice Initiative. We will continue to protect our seniors.”

The scheme targeted elderly victims throughout the United States and elsewhere.

The ring tricked and deceived victims using various ruses and instructed them to send money via wire through a money transmitter business such as Western Union or MoneyGram, by buying gift cards and providing to the fraudsters or by mailing cash to alias names via FedEx or UPS.

Part of the scheme involved fraudsters contacting victims by phone or via internet sites for computer technical support and directing victims to a particular phone number. Once victims contacted the fraudsters, they were told various stories such as they were communicating with an expert that needed remote access to their computer in order to provide technical support services. The fraudsters then gained access to victims’ personal data and bank and credit card information.

Victims typically paid a fee to conspirators for the fake technical support but were later told they were due a refund. Through paying for “technical support” or through the “refund” process, the ring gained access to the victim’s bank account(s) and credit cards and manipulated the accounts to make it appear the victim was paid too large a refund due to a typographical error. Victims were then instructed to reimburse the ring by various means.

Victims were sometimes re-victimized multiple times and threatened with bodily harm if they did not pay.

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

The FBI, U.S. Postal Inspection Service and IRS CI conducted the investigation with assistance from Homeland Security Investigations, Fort Bend County Sheriff’s Office and other local law enforcement agencies throughout the United States including the Sheriff’s Office and Commonwealth’s Attorney’s Office of Augusta County, Virginia. Assistant U.S. Attorneys Belinda Beek and Quincy Ollison prosecuted the case. 

The case is brought as a part of the Elder Justice Initiative. Its goal is to support and coordinate the Department’s enforcement and programmatic efforts to combat elder abuse, neglect and financial fraud and scams that target our nation’s older adults.

In March 2020, the U.S. Department of Justice launched National Elder Fraud Hotline to help combat fraud against older Americans and provide services to victims. If you or someone you know is a victim of elder fraud, we encourage you to call the National Elder Fraud Hotline at 833–FRAUD–11 (833–372–8311).

The hotline is open Monday through Friday from 10 a.m. to 6 p.m. eastern time. Services are available for speakers of English, Spanish and other languages.

McALLEN, Texas – An Alamo couple have been arrested for selling protected wildlife in the first case filed under The Big Cat Act, announced U.S. Attorney Alamdar S. Hamdani.

Legal permanent resident Rafael Gutierrez-Galvan, 29, and his wife Deyanira Garza, 28, made their initial appearances in federal court in McAllen Sept. 27.

According to the criminal complaint, Gutierrez-Galvan had sold a margay cub Aug. 24 for $7,500 in a local Academy Sports and Outdoors parking lot.  

On Sept. 26, Gutierrez-Galvan then attempted to sell a jaguar cub to the same individual. He allegedly instructed his wife to bring a case of cash from their residence to the location. However, law enforcement conducted a traffic stop before she could arrive and discovered the money.

Neither Gutierrez-Galvan or Garza possess a license to buy, sell, trade or transport exotic animals such as margays and jaguars.

Authorities recovered both animals.

The Big Cat Act was enacted in December 2022 and prohibits the importation, transportation, sale and possession of prohibited wildlife species. A jaguar is a prohibited species. Additionally, the Endangered Species Act prohibits the importation, exportation, sale and transportation of threatened and endangered species. Jaguars are listed as an endangered species.

If convicted, Gutierrez-Galvan and Garza face up to five years in federal prison and a possible $20,000 maximum fine.

Fish and Wildlife Service and Homeland Security Investigations conducted the investigation with the assistance of Texas Parks and Wildlife and the Houston and San Antonio Zoos. Assistant U.S. Attorney Devin V. Walker is prosecuting the case.

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

 

 

BROWNSVILLE, Texas – Several members of a deadly alien smuggling ring have pleaded guilty to conspiring to smuggle illegal aliens resulting in multiple deaths, announced U.S. Attorney Alamdar S. Hamdani.

Juan Manuel Tena, 40, Pharr, Julia Isairis Torres, 37, Israel Torres Jr., 34, and Jose Refugio Torres, 27, all of Roma, conspired to transport illegal aliens from the Rio Grande Valley to destinations within the United States. As a result of that conspiracy, a total of eight aliens were killed and two others seriously injured.

All four were all involved in the attempted smuggling of illegal aliens in March 2019 by motor vehicle from the Rio Grande Valley to Houston. During this failed attempt, a vehicle rolled over and caused the deaths of four non-U.S. citizens with serious injuries to one other.

Tena and others also attempted to smuggle illegal aliens in February 2022 by watercraft from South Padre Island to the Corpus Christi area. The watercraft capsized, resulting in the deaths of four other non-U.S. citizens and serious injury to another.

The victims included migrants from Honduras, Mexico, Guatemala, El Salvador and Ecuador as well as a 17-year-old boy from Ecuador and a pregnant woman from Honduras.

“From the shores of Corpus Christi to the backroads of the Rio Grande Valley, Tena and his associates left a dark path strewn with dead migrants. Eight people, including a pregnant mother, lost their lives due to their actions,” said Hamdani. “Like so many others, the victims in this case wanted to come to America for a better life, but Tena and his associates took advantage of them for profit. Now they are going to federal prison. Let this case be an example to anyone thinking about smuggling people in the United States, especially using dangerous means. You will be prosecuted. You will be held accountable.”

“Not only did this human smuggler conspire to undermine our nation’s immigration laws for his own personal profit, but eight migrants lost their lives because of his callous and reckless disregard for those whom entrusted him,” said Special Agent in Charge Craig Larrabee of Homeland Security Investigations (HSI). “HSI remains committed to working with our law enforcement partners, and utilizing our unique investigative authorities, to bring those responsible for horrible tragedies like this to justice.”

As part of his plea, Tena admitted to coordinating and recruiting co-conspirators to transport illegal aliens using watercraft and vehicles in both March 2019 and February 2022. Tena also agreed to the forfeiture of several properties in Roma and Pharr that he admitted to purchasing with the proceeds he received from the conspiracy.

As part of their pleas, Julia Torres and Jose Torres both admitted to their involvement in the March 2019 failed alien smuggling attempt.

On July 26, Israel Torres also pleaded guilty to his involvement in the March 2019 incident.

U.S. District Judge Roland Olvera accepted the pleas and set sentencing for Dec. 20. At that time, all four face up to life in federal prison and a possible $250,000 maximum fine.

Tena has been and will remain in custody pending sentencing.

Julia Torres, Israel Torres and Jose Torres were permitted to remain on bond pending their hearings.

HSI conducted the investigation with the assistance of Border Patrol; Coast Guard; Customs and Border Protection’s Air and Marine Operations; police departments in Port Mansfield and South Padre Island; Texas Rangers; Texas Game Wardens; sheriff’s offices in Kenedy, Duval and Willacy Counties; and the Willacy County District Attorney’s Office. Assistant U.S. Attorneys Edgardo J. Rodriguez and David A. Lindenmuth are prosecuting the case.

HOUSTON – A 38-year-old Mont Belvieu resident has been taken into federal custody on charges he diverted victims’ monies for his personal use, announced U.S. Attorney Alamdar S. Hamdani. 

A federal grand jury returned the indictment Sept. 27 against Carl Spence.

Spence allegedly ran an investment business called AEI Financial from his residence. According to the charges, Spence lured victims by promising he would invest their funds and obtain 20-30% returns on investment. He also allegedly falsely represented to investors that he was registered with the SEC. 

Spence would divert victims’ money and use it to pay for his own personal expenses or to pay previous investors, according to the charges. In addition, although the victims’ money had been significantly (or nearly completely) depleted, Spence would allegedly produce fraudulent account statements showing that the victims’ accounts had grown.  

Spence faces one count of wire fraud which carries a penalty of up to 20 years imprisonment and a possible $250,000 maximum fine, upon conviction.

The FBI conducted the investigation. Assistant U.S. Attorneys Thomas Carter and Brad Gray 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 - A 38-year-old resident of Montgomery County has pleaded guilty to sexual exploitation of a child and possession of child pornography, announced U.S. Attorney Alamdar S. Hamdani.

Authorities identified James Aubrey Zachary Wasson after discovering over 500 files of child pornography he had uploaded between March 2019 and March 2021. One folder contained a series of 51 photographs, all taken on a single date in December 2020. Some showed him in a state of sexual arousal next to a minor female child. He also appeared to be fondling her under her clothing.

A subsequent search of Wasson’s cell phone confirmed it was the device he used to produce the series of sexually explicit photographs. The cell phone also contained other files of child pornography saved between May 2020 and May 2021.

The minor victim also identified Wasson and recalled when he took the photographs.

U.S. District Judge George C. Hanks accepted the plea and set sentencing for Jan. 4, 2024. At that time, Wasson faces a minimum of 15 and up to 30 years in prison for sexual exploitation of a child, as well as up to 10 years for possession of child pornography.

He has been and will remain in custody pending sentencing.

Homeland Security Investigations conducted the investigation.

Assistant U.S. Attorney Stephanie Bauman 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 52-year-old San Antonio man has been sentenced for his role in a scheme that involved the submission of over $150 million in false and fraudulent claims to Medicare for hospice and other health care services.

Jesus Virlar-Cadena pleaded guilty June 4, 2019.

U.S. District Judge Rolando Olvera has now ordered Virlar-Cadena to serve 50 months in federal prison to be immediately followed by one year of supervised release. The court also ordered Virlar-Cadena to pay $9 million in restitution and $9 million in forfeiture.

From 2009 to 2018, Virlar-Cadena served as the medical director of the Merida Group, a large health care company that operated dozens of locations throughout Texas. He was a physician but the Texas Medical Board later suspended his medical license.

A federal jury convicted co-conspirators Rodney Mesquias, 53, San Antonio, Henry McInnis, 52, Harlingen, and Francisco Pena in October 2019.  

Evidence at the trial showed that the Merida Group marketed their hospice programs through a group of companies. They enrolled patients with long-term incurable diseases such as Alzheimers and dementia as well as patients with limited mental capacity who lived at group homes, nursing homes and in housing projects. In some instances, Merida Group marketers falsely told patients they had less than six months to live. They also sent chaplains to the patients based on the false pretense they were near death.

In order to bill Medicare for these services, the Merida Group hired Virlar and other medical directors but made payment of their medical director fees contingent upon an agreement to certify unqualified patients for hospice. In addition to regular medical director payments, Virlar received luxury trips, bottle service at exclusive nightclubs and other perks in exchange for his certification of unnecessary hospice patients. In exchange for these illegal kickbacks, Virlar himself certified over $18 million in unnecessary hospice services as part of the over $150 million conspiracy.  

Mesquias and McInnis were previously sentenced to 20 and 15 years in prison, respectively. Pena is now deceased.

Virlar-Cadena was permitted to remain on bond pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

Department of Health and Human Services – Office of Inspector General (OIG), FBI and Texas Health and Human Services Commission – Office of Inspector General investigated the case.

Assistant U.S. Attorney Andrew Swartz prosecuted the case along with Principal Assistant Chief Jacob Foster and former Trial Attorney Kevin Lowell of the Criminal Division’s Fraud Section.

CORPUS CHRISTI, Texas – A 39-year-old Orange Grove woman has been ordered to federal prison following her convictions of fraud and identity theft, announced U.S. Attorney Alamdar S. Hamdani.

Katrina Theiss Freitag pleaded guilty to Fraudulent use of a Social Security number on April 5, 2022. Prior to sentencing Freitag committed additional fraudulent conduct and plead guilty to aggravated identity theft April 17.

U.S. District Judge Drew B. Tipton has now ordered Freitag to serve 80 months in federal prison to be immediately followed by three years of supervised release for fraudulent use of a Social Security number. She will also receive two years for aggravated identity theft which must be served consecutively for a total 104-month sentence. At the hearing, the court heard that Freitag was involved in an additional fraud scheme while working for another employer and statements from victims of Freitag’s schemes.

From 2012 to 2017, Freitag worked for a commercial insulation company as a bookkeeper who handled day-to-day business activities including finances. She obtained unauthorized cash advances using the companies’ receivables as collateral. Freitag used the owner’s Social Security number and signed the owner’s name to the cash advance documents without authorization. She executed five unauthorized secure merchant agreements over seven months. The company incurred a loss of $580,000 because of Freitag’s scheme.

Freitag pleaded guilty April 5, 2022, to two counts of fraudulent use of Social Security number in a loan scheme. After this plea, she was permitted to remain on bond.

Freitag then began working for a Corpus Christi pawn shop as a bookkeeper. The manager discovered several suspicious credit card transactions on the owner’s credit card account. The investigation revealed Freitag made unauthorized online charges for groceries, payments to a tax preparation company and her personal cell phone bill. There was an also a forged company check electronically deposited into Freitag’s bank account. Freitag was remanded into custody after this scheme and pleaded guilty to aggravated identity theft related to use of the pawn shop owner’s credit card account without authorization.

Freitag 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 Orange Grove Police Department. Assistant U.S. Attorneys Robert D. Thorpe Jr. and John Marck prosecuted the case.

HOUSTON – A 34-year-old former state trooper will now see the other side of a prison cell after coercing two women into providing him with oral sex while on duty, announced U.S. Attorney Alamdar S. Hamdani.

The jury deliberated for three hours before returning a guilty verdict against Lee Ray Boykin Jr. following a four-day trial Jan. 13.

U.S. District Judge George C. Hanks has now ordered Boykin to serve 516 months in federal prison to be immediately followed by five years of supervised release. In imposing the sentence, the court called Boykin a “predator” who had not shown remorse for his crimes. “Your crocodile tears do not impress me,” said Hanks. Boykin attempted to blame the victims, but the court said it was “repugnant,” saying that he had destroyed their lives.

“Lee Ray Boykin turned traffic stops into sexual assaults,” said U.S. Attorney Hamdani. “He used his badge and all the power it afforded to force himself onto two vulnerable women. Boykin targeted victims he believed would not report him and even thought he got away with it. He was wrong. This sentence sends a message that we will pursue anyone that poses a threat to our citizens, no matter what position they hold. And thanks to the hard work of law enforcement, the position Boykin now holds is inmate.” 

At trial, the jury determined Boykin had deprived two separate victims of their right to bodily integrity while acting in his capacity as a state trooper with the Texas Department of Public Safety (DPS) in that he committed aggravated sexual abuse as to one victim and kidnapping as to the other victim. He was also found guilty of two counts of destruction, alteration or falsification of records in a federal investigation.

One of the victims explained how Boykin had taken her to a secluded parking lot after being ordered out of her friend’s car following a traffic stop. Once there, Boykin falsely accused her of being a prostitute, threatened to take her to jail and forced her to perform oral sex on him. Afterwards, he told her to run while placing his hand on his gun.

The jury heard evidence that showed Boykin’s DNA in the parking lot. The victim’s DNA was also found on Boykin’s underwear.

The second victim testified that Boykin ordered her out of her friend’s car and placed her into Boykin’s vehicle. Boykin falsely told her she had outstanding traffic warrants. He then took this victim to the same secluded parking lot, where she performed oral sex on him. Three days later, Boykin attempted to get her into his trooper car again, but she was able to escape.

The jury also heard about statements Boykin had made to authorities. Regarding the sexual assault of the first victim, he said he thought he “got away with it” and knew he should not have done it. He said he “just wanted to try.”

The jury did not believe defense claims and ultimately found him guilty.

Boykin has been and will remain in custody.

The Houston Police Department and Texas Rangers conducted the investigation with the assistance of FBI and DPS. Assistant U.S. Attorneys Sebastian A. Edwards and Kate A. Suh are prosecuting the case.

CORPUS CHRISTI, Texas – A 60-year-old Mission resident has been ordered to federal prison following his conviction for transportation of an undocumented alien, announced U.S. Attorney Alamdar S. Hamdani.

Thomas Taylor Charlton pleaded guilty May 2.

U.S. District Judge David S. Morales has now ordered Charlton to serve 51 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the court heard additional evidence regarding the incident that described 70 people locked in a trailer with only hatchets to exit.

Before imposing the sentence, Judge Morales also heard additional evidence regarding his history which includes a conviction for aggravated battery.

On July 10, 2022, Charlton arrived at the Javier Vega Jr. Border Patrol (BP) checkpoint. He claimed he was hauling chili peppers, but a K-9 alerted to the trailer. Law enforcement had to use bolt cutters to remove the lock and gain access to the trailer. They also found hatchets located in the trailer.

Upon further investigation, authorities discovered 70 people illegally present in the United States concealed behind pallets of produce in the locked refrigerated trailer portion of the tractor trailer Charlton was driving.

They also found a handheld walkie talkie in the trailer and cab of the tractor, both on the same frequency that would allow communication between the tractor and trailer.

The key to the trailer was found in the cab.

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

Homeland Security Investigations and Border Patrol conducted the investigation. Assistant U.S. Attorneys Liesel Roscher and Patrick Overman prosecuted the case.

CORPUS CHRISTI, Texas – A South Texas man has been ordered to federal prison for smuggling aliens in two personal watercrafts, announced U.S. Attorney Alamdar S. Hamdani.

Fernando Cerda Jr., 26, Mission, pleaded guilty July 3.

U.S. District Judge David Morales has now ordered Cerda to serve 48 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the court viewed images of how the undocumented aliens were sealed in the hollowed engine compartments of two jet skis.  In handing down the sentence, the court noted the egregious manner in which the migrants were transported.

On April 24, Cerda approached the Falfurrias checkpoint towing two jet skis. A K-9 soon alerted to them. Law enforcement conducted an inspection and discovered five aliens concealed inside the watercrafts. The aliens reported they feared for their lives while they were trapped in the jet skis.

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

Border Patrol conducted the investigation. Assistant U.S. Attorney John Lamont prosecuted the case. 

HOUSTON - A 13-count indictment was unsealed today charging two pharmacists and a physician for their roles in a multimillion-dollar health care fraud, kickback and money laundering scheme.

A federal grand jury in Houston returned the 13-count indictment Sept. 7, which was unsealed today.

According to court documents, Shalondria Simpson, 45, Houston, is a pharmacist who owned and operated two pharmacies in Houston: Advance Pharmacy and TruCare Pharmacy. Simpson’s twin sister, physician Lashondria Simpson-Camp, 45, Allen, allegedly referred prescriptions to Advance and TruCare in exchange for illegal kickbacks and bribes. Shayla Bryant, 38, Houston, was a pharmacist and Advance and TruCare’s business manager. 

Between 2016 and 2022, Simpson, Simpson-Camp and Bryant allegedly conspired with others to submit false and fraudulent claims to the Department of Labor’s Office of Workers’ Compensation Program (DOL-OWCP) for high reimbursing drugs that were often medically unnecessary and induced by kickbacks and bribes. DOL-OWCP administers workers’ compensation benefits on behalf of the Federal Employee’s Compensation Act (FECA),

Further, Simpson, Simpson-Camp, Bryant and others allegedly conspired to pay and receive these kickbacks. Simpson and Bryan allegedly paid illegal kickbacks and bribes, often through shell entities or in cash, directly to physicians like Simpson-Camp, a clinic owner, a medical assistant and other marketers. In total, Simpson’s pharmacies allegedly submitted approximately $170 million in fraudulent claims to FECA through DOL-OWCP. 

To conceal the scheme and disguise its proceeds, Simpson also allegedly conspired to launder the proceeds of the criminal activity through financial transactions greater than $10,000. According to the indictment, after learning of the investigation, Simpson attempted to cover her tracks by converting criminal proceeds to cash and transferring funds among over 10 bank accounts and a cryptocurrency wallet. She also allegedly solicited others’ help in liquidating assets and concealing her ownership and control of those assets. 

The indictment charges Simpson, Simpson-Camp and Bryant with one count of conspiracy to defraud the United States and pay and receive health care kickbacks and one count of conspiracy to commit health care fraud. Simpson is also charged with five counts of paying health care kickbacks, one of which also charges Bryant. The indictment further charges Simpson with conspiracy to launder monetary instruments and five counts of money laundering. If convicted, Simpson, Simpson-Campq and Bryant each face a maximum penalty of five years in prison for conspiracy to defraud the United States and pay and receive health care kickbacks as well as 10 years in prison for conspiracy to commit healthcare fraud. Simpson and Bryant each face a maximum penalty of 10 years in prison for each count of paying health care kickbacks. Simpson faces a maximum penalty of 20 years in prison for conspiracy to launder money instruments and 10 years for each count of money laundering.

The U.S. Postal Service - Office of Inspector General (USPS-OIG), Department of Labor – OIG, FBI and Veterans Affairs – OIG conducted the investigation.  

Assistant U.S. Attorney Brandon Fyffe and Trial Attorneys Devon Helfmeyer and Andrew Tamayo of the Criminal Division’s Fraud Section are prosecuting the case.

The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, comprised of 15 strike forces operating in 25 federal districts, has charged more than 5,000 defendants who collectively have billed federal health care programs and private insurers more than $24 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.

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

A 13-count indictment was unsealed today charging two pharmacists and a physician for their roles in a multimillion-dollar health care fraud, kickback, and money laundering scheme.

According to court documents, Shalondria Simpson, 45, of Houston, is a pharmacist who owned and operated two pharmacies in Houston: Advance Pharmacy (Advance) and TruCare Pharmacy (TruCare). Simpson’s twin sister, physician Lashondria Simpson-Camp, 45, of Allen, Texas, allegedly referred prescriptions to Advance and TruCare in exchange for illegal kickbacks and bribes. Shayla Bryant, 38, of Houston, was a pharmacist and Advance and TruCare’s business manager. 

Between 2016 and 2022, Simpson, Simpson-Camp, and Bryant allegedly conspired with others to submit false and fraudulent claims to the Department of Labor’s Office of Workers’ Compensation Program (DOL-OWCP), which administered workers’ compensation benefits on behalf of the Federal Employee’s Compensation Act (FECA), for high reimbursing drugs that were often medically unnecessary and induced by kickbacks and bribes. Further, Simpson, Simpson-Camp, Bryant, and others allegedly conspired to pay and receive these kickbacks. Simpson and Bryan allegedly paid illegal kickbacks and bribes, often through shell entities or in cash, directly to physicians like Simpson-Camp, a clinic owner, a medical assistant, and other marketers. In total, Simpson’s pharmacies allegedly submitted approximately $170 million in fraudulent claims to FECA through DOL-OWCP. 

To conceal the scheme and disguise its proceeds, Simpson also allegedly conspired to launder the proceeds of the criminal activity through financial transactions greater than $10,000. According to the indictment, after learning of the investigation, Simpson attempted to cover her tracks by converting criminal proceeds to cash, and transferring funds among over ten bank accounts and a cryptocurrency wallet. She also allegedly solicited others’ help in liquidating assets and concealing her ownership and control of those assets. 

The indictment charges Simpson, Simpson-Camp, and Bryant with one count of conspiracy to defraud the United States and pay and receive health care kickbacks and one count of conspiracy to commit health care fraud. Simpson is also charged with five counts of paying health care kickbacks, one of which also charges Bryant. The indictment further charges Simpson with conspiracy to launder monetary instruments and five counts of money laundering. If convicted, Simpson, Simpson-Camp, and Bryant each face a maximum penalty of five years in prison for conspiracy to defraud the United States and pay and receive health care kickbacks, and 10 years in prison for conspiracy to commit healthcare fraud. Simpson and Bryant each face a maximum penalty of 10 years in prison for each count of paying health care kickbacks. Simpson faces a maximum penalty of 20 years in prison for conspiracy to launder money instruments and 10 years for each count of money laundering.

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, Special Agent in Charge Jonathan Ulrich of the U.S. Postal Service Office of Inspector General (USPS-OIG), Acting Special Agent in Charge Casey Howard of the Department of Labor Office of Inspector General (DOL-OIG), Acting Special Agent in Charge David L. Martinez of the FBI Houston Field Office, and Special Agent in Charge Kris Raper of the Department of Veterans Affairs Office of Inspector General (VA-OIG) South Central Field Office made the announcement.

The USPS-OIG, DOL-OIG, FBI, and VA-OIG are investigating the case.

Trial Attorneys Devon Helfmeyer and Andrew Tamayo of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Brandon Fyffe for the Southern District of Texas are prosecuting the case.

The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, comprised of 15 strike forces operating in 25 federal districts, has charged more than 5,000 defendants who collectively have billed federal health care programs and private insurers more than $24 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.

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

LAREDO, Texas –  A former Border Patrol (BP) agent and another individual have entered a guilty plea to employing illegal aliens by fraudulently obtaining immigration permits, announced U.S. Attorney Alamdar S. Hamdani.

Ricardo Gonzalez, 40, and Alex Lopez, 33, Laredo, entered a guilty plea to conspiracy to defraud the United States.

Gonzalez operated a company known as Gonmor Transportation. Lopez was the office manager. Gonzalez was also an active BP agent.

The multi-year scheme involved the company recruiting and hiring non-immigrants to work as commercial truck drivers, but then paid them less due to their citizenship status. As part of the scheme, Gonzalez’s company would provide these new hires with a letter to take to one of the ports of entry in Laredo. The letter had information claiming the driver was working for a Mexican trucking company and was requesting an I-94 travel permit so he could enter the United States, pick up cargo and return to Mexico.

As part of their respective pleas, each admitted to knowing the drivers were not working for this Mexican company, yet still providing the letter to assist in obtaining the I-94 permit. Once these drivers obtained the permit, Gonmor paid them to transport cargo within the United States, in violation of the permit terms.

A Mexican driver with a valid non-immigrant visa who works for a Mexican transportation company and is paid by them in Mexico may obtain an I-94 at one of the ports of entry. With it, the driver can travel with a load into the United States, go beyond the checkpoints to his or her final destination then return to Mexico. An I-94 does not allow the holder to work in the United States or for a U.S.-based company.

Gonzalez and Lopez admitted to knowing the people they were hiring to drive trucks for the company were not allowed to work in the United States, that the company paid these people less because of their status and that the I-94 permit did not authorize these individuals to work in the United States.

U.S. District Judge Diana Saldaña will impose sentencing at a later date. At that time, each faces up to five years in federal prison and a possible $250,000 maximum fine.

Gonzalez and Lopez were permitted to remain on bond pending sentencing.

Customs and Border Protection - Office of Professional Responsibility conducted the investigation. Assistant U.S. Attorney Brian Bajew is prosecuting the case.

HOUSTON – A dozen members of the Homietos Outlaw Motorcycle Gang are now in custody on racketeering and firearms charges related to a violent assault of another motorcycle club in Houston, announced U.S. Attorney Alamdar S. Hamdani.

Law enforcement took Joseph Gomez aka Tequila, 37, Sugarland, into custody late Friday, Sept. 22. He is expected to make his initial appearance before U.S. Magistrate Judge Yvonne Ho today at 2 p.m.

Authorities took Houston residents Joe Barrera aka LJ, 35; Joe Rios aka Jo Daddy, 47, Edgar Hinojosa aka Charro Bean, 38, William Espinoza, 47, Mario Gomez aka Gator, 50, Morgan Cooper aka Coop, 49, and Moises Soriano aka Oso, 41, into custody Sept. 21, after which they appeared in federal court. Law enforcement also arrested Rudolph Lopez aka Yao, 36, Fort Worth.

They all remain in custody pending further criminal proceedings.

Ricardo Quinones aka Scooter, 36, Houston; Raymond Burnett aka Ray Ray, 36, Alvin; Jesse Mulrein aka Fort Worth G, 36, Dallas, were previously in custody and expected to make their appearances in the near future.

  

“We took action,” said Hamdani. “These alleged gangs are built on a foundation of violence, with members and associates committing acts designed to protect the power and reputation of the organization. Whether on the east side, Sunnyside or within the confines of a motorcycle club, we will pursue anyone who allegedly commits brutal and violent acts to maintain status in a gang.”

“The arrests of 12 alleged Homieto outlaw motorcycle gang members are the result of a multi-year FBI Houston-led interagency investigation and are the first significant indictments against these types of criminal groups in the Houston area,” said Acting Special Agent in Charge David Martinez of the FBI Houston field office. “This criminal organization is accused of crimes that keep victims, community members and rivals in a perpetual state of fear through intimidation and violence. Law enforcement and the public have had enough of the violence, ruthlessness and disregard for law and order that this gang is alleged to have perpetrated.”

A federal grand jury returned the indictment on September 13, 2023, which was unsealed upon the arrests.

The charges allege that on Sept. 19, 2020, members of the Homietos gang and their associates were celebrating their fifth-year anniversary at the Sterling Banquet Hall in Houston. One member had allegedly invited three members of the Tattoo Crue motorcycle club. Shortly after their arrival, several Homietos members violently assaulted the Tattoo Crue club members, according to the indictment.

Two victims allegedly required hospitalization. 

The indictment alleges the Homietos Outlaw motorcycle gang is a violent criminal organization with chapters spread throughout the state of Texas and in other locations in the United States. They allegedly recruit members and associates who are predominantly convicted felons, a great number of whom are current or former Houstone Tango Blast gang members. In order to protect the power, reputation and territory of Homietos, members and associates are required to commit acts of violence, threats of violence and intimidation, according to the charges. These members and associates allegedly maintain and enhance their status in Homietos by participating in such violent acts.

All 12 are charged with assault with a dangerous weapon in aid of racketeering and conspiracy to do so and discharging a firearm during a crime of violence. Barrera, Cooper and Burnett are also charged with felon in possession of a firearm while Hinojosa faces allegations of possession of a firearm with an obliterated serial number.

The assault charge carries up to 20 years in prison as a possible penalty, while the conspiracy charges carry a potential three-year-sentence. If convicted of the discharging a firearm count, they also face a minimum of 10 years and up to life which must be served consecutively to any other prison term imposed.  

All charges also carry possible fines of up to $250,000.

The FBI and the Texas Department of Criminal Justice - Office of Inspector General conducted the investigation with the assistance of the Texas Department of Public Safety, Bureau of Alcohol, Tobacco, Firearms and Explosives, sheriff’s offices in Harris and Montgomery Counties, Houston Police Department and U.S. Marshals Service. Assistant U.S. Attorneys John M. Lewis and Brian J. Hrach 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 – A former high-ranking member of the Los Zetas cartel has entered a guilty plea to a conspiracy to import tons of cocaine into the United States, announced U.S. Attorney Alamdar S. Hamdani.

Jose Maria Guizar-Valencia, 43, of Tulare, California, is considered one of the last numbered Los Zetas and was a regional leader in charge of the Guatemala/Central America region.

“Today the cartels were put on notice,” said Hamdani. “After a long and hard fought battle, we brought another ruthless cartel leader to justice. Jose Maria Guizar-Valencia may have thought he was untouchable, but now he feels the reach, power and persistence of the Department of Justice and the Drug Enforcement Administration (DEA). He once led the drug activity in a large swath of Central America. Those days are over, and the residents of the Southern District of Texas are now safer.”  

“The guilty plea of Guizar-Valencia is another example of our success in the fight against Mexican drug cartels operating in the United States and exemplifies the commitment of the DEA and our law enforcement partners to battle against global drug trafficking organizations,” said DEA Special Agent in Charge Daniel C. Comeaux, Houston Division. “DEA continues our pursuit to hold accountable high ranking members of Mexican drug cartels who profit from the sale of dangerous drugs to our citizens, and threaten the security of the United States.”

In 2012, law enforcement began an investigation into the illegal drug trafficking activities of the Los Zetas. At the time, they were a Mexican-based drug cartel in control of much of the Mexico/U.S. border to include the Texas corridor. 

The investigation revealed Los Zetas had expanded their control of the drug trade to Central and South America. This enabled them to control the importation of drugs from countries including Guatemala, Honduras and Colombia into the Republic of Mexico and then into the United States.

The investigation revealed that from 2007 to 2014, Guizar-Valencia was responsible for controlling a large portion of Guatemala and for coordinating the transportation of multi-ton quantities of cocaine from Colombia to Guatemala, Guatemala to Mexico and then from Mexico into the United States for further distribution. Guizar-Valencia also managed the receipt of millions of dollars in U.S. currency the cartel obtained from the sale of cocaine in the United States.

Guizar Valencia had been under indictment and was on the run for many years. He evaded apprehension until Feb. 9, 2018, when Mexican authorities and its military arrested him in Mexico City, Mexico. He later waived extradition.

U.S. District Judge Diana Saldana will sentence Guizar-Valencia at a later date, at which time he will be facing a possible punishment of up to life in prison and a $10 million maximum fine. He will remain in custody.

The DEA spearheaded the long term 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. Attorneys (AUSA) MaryLou Castillo, Lance Watt and former AUSA James Hepburn of the Southern District of Texas and Kirk Handrich of the Criminal Division’s Narcotic and Dangerous Drug Section prosecuted the case.

CORPUS CHRISTI, Texas – A 32-year-old resident of Yukon, Oklahoma, has been ordered to federal prison after his conviction of kidnapping and brandishing a firearm during the crime, announced U.S. Attorney Alamdar S. Hamdani.

The federal jury sitting in Corpus Christi deliberated for approximately three hours before convicting Joshua Anthony Wallin June 29 on both counts following a four-day trial.

U.S. District Judge David S. Morales has now ordered Wallin to serve 365 months in federal prison for the kidnapping charge to be immediately followed by 84 months for brandishing a firearm which must be served consecutively to the other term imposed. The total 449-month-term will be immediately followed by five years of supervised release. He was also ordered to pay the victim restitution. Before sentencing, Judge Morales took exception to Wallin’s statement that no one had been hurt. In imposing the prison term, the court into account all the pain Wallin caused to the victim and her family.

In the early morning hours of June 23, 2021, Wallin confronted his estranged wife at her home in Crescent, Oklahoma, holding her at gunpoint and subjecting her to a two-day ordeal. The jury heard how he took her and their one-year-old son on an arduous journey that culminated at a Corpus Christi restaurant.

The victim provided testimony describing her fear and how she was sexually assaulted before they left Oklahoma and again along the way. She also told the jury that at one point during the trip, Wallin said “at the end of the day someone is going to die.”  

As they traveled though Texas, Wallin was aware of law enforcement, called 911 and began a series of conversations with them. He repeatedly made threatening statements about killing his wife and child, telling authorities they should not get too close. His driving became erratic, and law enforcement was able to use a tire deflation device to flatten a rear tire. He eventually crashed into a local restaurant.

They eventually arrived in Corpus Christi, at which time Wallin grabbed his son from the mother’s arms and carried him into the restaurant while pointing a gun at his son’s head. Upon entry, Wallin fired one shot into the ceiling and ordered the occupants out of the restaurant.

A two-hour stand-off then ensued. Wallin did speak with negotiators, but became increasingly agitated. As authorities gained entry, Wallin shot himself. The child was unharmed. Wallin recovered from his self-inflicted wound.

At trial, testimony revealed Wallin had performed internet searches on his phone the day before the kidnapping in an attempt to locate his estranged wife and to learn how people react when kidnapped.

The defense attempted to convince the jury that Wallin and the victim were on a vacation when things went horribly wrong. The jury did not believe those claims and found Wallin guilty as charged.

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

The Corpus Christi Police Department and FBI conducted the investigation. Assistant U.S. Attorneys Michael Hess and Ashley Martin prosecuted the case.

HOUSTON – A 33-year-old Richmond man who operated a medical supply company in Porter has been ordered to federal prison for a massive fraud that resulted in losses of $17 million, announced U.S. Attorney Alamdar S. Hamdani.

Caleb M. McCreless pleaded guilty May 2.

U.S. District Judge Sim Lake has now ordered him to prison for 110 months to be immediately followed by three years of supervised release and restitution of $36,279,780 to 11 different victims. Before imposing the sentence, the court noted the opportunistic nature of the crime. Given the sheer amount of loss McCreless caused, Judge Lake added that the victims would probably never be paid back in full.   

“Mansions, a Rolls Royce, a lavish lifestyle, and good old fashioned greed motivated Caleb McCreless to take advantage of a nation’s emergency, exploiting the most vulnerable amongst us,” said Hamdani. “McCreless started his scheme by taking almost $1 million from the hands of those trying to treat Native American elders at a time when COVID-19 was decimating that population. His action were deplorable, and now it’s time to pay. No more cars, no more mansions, just a small cell.”

McCreless orchestrated a scheme to defraud retail buyers in the medical services sector by promising to deliver high-grade surgical gloves he did not have. He took initial payments that ran into the millions, but never delivered gloves or only delivered a small portion of them at a vastly inferior quality.

McCreless admitted when he ran out of victims from May 2020 through spring 2021, he induced millions in payments from his victims by offering surgical gloves from a trusted Chinese company.  But, McCreless actually had no such relationship.     

After taking the money, he would try to stall the victims and then eventually stopped communicating with them. Many failed deals ended in civil litigation. McCreless used the money to pay off co-conspirators and fund a lavish lifestyle such as buying exotic vehicles and a mansion.       

Almost a dozen victims from across the United States, including Texas, lost over $17 million in the scheme.  

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

The FBI and Harris County Constable’s Office Precinct 1 conducted the investigation. Assistant U.S. Attorney Thomas Carter prosecuted the case.

HOUSTON – Two Houston residents have been ordered to federal prison following their conviction of carjacking with the intent to cause death or serious bodily harm, announced U.S. Attorney Alamdar S. Hamdani.

Frank Lewis Blanco, 28, and Destinee Guerrero, 24, pleaded guilty June 23.

U.S. District Judge David Hittner has now imposed a 120-month term of imprisonment for Blanco, while Guerrero received 72 months. Both must also serve three years of supervised release following their sentences.

At the hearing, the court heard from the victim who described what happened to him and his subsequent injuries. He noted how Blanco and Guerrero treated his head like a football and the lasting damage to his eye and nose. The court also heard additional testimony including how the victim is an immigrant who is a hard-working man to support his wife and children. In handing down the prison terms, Judge Hittner commented on the “extreme violent nature and circumstances of the offense.”

“Justice is blind” said Hamdani. “Whether a businessman heading to the office or an immigrant climbing into the driver’s seat, everyone deserves to be safe at work. As the son of an immigrant cab driver, I am heartbroken for what the victim endured and suffered for just doing his job. Thankfully, the court, today, provided justice to this working class man.”

“Blanco and Guerrero’s actions tear apart the fabric of our community by targeting those who keep our community running. They disguised themselves as passengers to savagely beat and rob a carshare driver trying to earn an honest living,” said Acting Special Agent in Charge David Martinez of the FBI Houston field office. “These two attackers not only robbed their victim of his livelihood but his sense of security. We hope today’s sentence demonstrates to these types of criminals, and others still out there, that we will not allow them to target and terrorize hard-working members of our community.”

On Nov. 13, 2022, Blanco and Guerrero hailed an Uber at approximately 8:30 a.m. However, once inside the vehicle, they repeatedly changed their destination, directing the driver around Houston for approximately half an hour.

The driver ultimately asked the couple to get out of the car, but they refused. He stopped at a gas station and asked the attendant to call the police. While awaiting the arrival of authorities, the driver again asked Blanco and Guerrero to get out of his car. The couple then began to attack him, knocked him unconscious, repeatedly stomped and kicked his body and then stole his car.

The gas station cameras captured the beating.

Both have been and 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 Houston Police Department. Assistant U.S. Attorney Stuart Tallichet is prosecuting the case.

HOUSTON – A 35-year-old Missouri City man has been ordered to prison in a long-running scheme that cost his employer millions of dollars, announced U.S. Attorney Alamdar S. Hamdani.

Preston Allen Fredrich pleaded guilty to wire fraud Aug. 17, 2022.  

U.S. District Judge Keith P. Ellison has now ordered him to prison for 21 months to be immediately followed by one year of supervised release. In imposing the sentence, Judge Ellison noted the uniquely intimate nature of the crime.    

From at least 2018 through spring 2021, Fredrich stole from a family-owned company located in North Houston that sold and re-fitted large trucks. Fredrich was the lead salesmen.

He orchestrated an embezzlement scheme in which he stole from his employer by submitting fake and fraudulent invoices and then collecting the payments for himself. He began his scheme by asking clients to send invoices directly to him, as opposed to the company. He then sent these invoices to the company with inflated expenses or unwanted upgrades, pocketing the difference for himself.    

Fredrich also admitted that as the scheme progressed, he eventually set up a bank account with another individual who ran an auto-body shop that frequently did business with the victim company. Fredrich then submitted fake invoices from this company and hid them by bundling them with other legitimate invoices.    

Fredrich 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 FBI conducted the investigation. Assistant U.S. Attorney Thomas Carter prosecuted the case.

HOUSTON – A Houston man and woman have been sentenced for damaging property occupied by a foreign government, announced U.S. Attorney Alamdar S. Hamdani. 

Darion Benjamin Woods, 28, and Christin Danielle Brinkley, 26, pleaded guilty May 16, admitting they broke into, damaged  and stole several items from the private residence of the Consul General for Great Britain. 

U.S. District Judge Randy Crane has now ordered Woods to serve 30 months in prison followed by three years of supervised release. Brinkley received 14 months followed by one year of home detention as part of her three years of supervised release after her sentence. Both were also ordered to pay $56,636.15 in restitution. 

In imposing the sentence, the court considered a statement from the victim and noted the seriousness of the conduct and extent of damage to the residence.

At the time of the pleas, both admitted to burglarizing the home on July 23, 2022. Nobody was in the residence at the time of the incident. 

Security cameras captured Brinkley and Woods pulling up to the gated residence with a U-Haul, jumping over the gate and eventually driving  through it and causing significant damage. Once inside, they stole multiple items, including the two cars (one of which was the property of the British Consulate), jewelry, electronics, documents and a safe. 

Authorities later located the stolen vehicles at an address in Houston and observed Brinkley inside both vehicles at different times. They took Brinkley and Woods into custody and recovered the vehicles as well as some property from the residence, most of which was damaged. 

Both were ordered into custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

The Department of State – Diplomatic Security Service and the FBI conducted the investigation with the assistance of the Harris County Sheriff’s Office. Assistant U.S. Attorneys Luis Batarse and Richard W. Bennett prosecuted the case. 

HOUSTON – A 47-year-old healthcare consultant has agreed to pay $30,000 to settle allegations that she assisted in causing the submission of false claims, announced U.S. Attorney Alamdar S. Hamdani. 

Franceene McKinney is a medical information technology and coding consultant based in the Cincinnati area. Through her business, IOS Consultants LLC, she provided services to doctors, chiropractors and other medical professionals across the country, including in the Southern District of Texas.     

From Jan. 1, 2016, to Dec. 31, 2020, McKinney aided those providers in billing Medicare fraudulently, pointing them to a billing code designed for the surgical implantation of neurostimulator electrodes. These are invasive procedures usually requiring the use of an operating room. Medicare pays thousands of dollars per procedure. 

However, the providers McKinney assisted did not perform surgical procedures. Instead, patients received devices used for electro-acupuncture, which only involves inserting needles into patients’ ears and taping the neurostimulator behind them with an adhesive.

In addition to the financial settlement, McKinney and IOS have agreed to a three-year period of exclusion from participation in any federal health care programs. 

To date, this is the tenth case the Southern District of Texas has resolved for similar conduct.  The other matters included settlements with a Katy anesthesiologist, Houston pain doctor, Rockport chiropractor, Houston chiropractor, Laredo pain doctor, The Woodlands pain doctor, Cypress marketing representative, and two separate settlements (linked here and here) with Cypress podiatrists.     

The Department of Health and Human Services – Office of Inspector General conducted the investigation.  Assistant U.S. Attorney Brad Gray handled the matter. 

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

HOUSTON – An exporting and logistics business has agreed to pay $50,000 to resolve allegations it insufficiently screened cargo bound for export to Central America, announced U.S. Attorney Alamdar S. Hamdani. 

Interport Company Inc. is registered in Illinois and Florida. It maintains an office in Houston and ships goods and vehicles from Freeport and the Port of Houston. 

Exporters such as Interport are required to submit electronic filings containing certain information for each international shipment pursuant to Customs and Border Protection (CBP) regulations. As part of that process, they are required to screen shipments for firearms and ammunition. They must also provide vehicle identification numbers (VIN) for any vehicles in their shipments. 

During 2020 and 2021, authorities inspected various shipping containers destined for Central America that Interport had loaded. Those inspections revealed hidden firearms and ammunition contained within customer goods, along with vehicles whose VINs differed from the ones Interport had submitted on electronic forms. As a result, CBP assessed civil penalties for each violation it discovered. 

Interport agreed to pay $50,000 to satisfy those penalties without litigation and to enhance its screening of customer shipments in the future. As part of the settlement, Interport must meet on a quarterly basis with CBP representatives at the Port of Houston to discuss additional compliance measures. 

CBP conducted the investigation. Assistant U.S. Attorney Brad Gray and Auditor Matt Prahl handled the matter. 

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

McALLEN, Texas – A 28-year-old Monte Alto man has been ordered to federal prison following his conviction for conspiracy to possess with intent to distribute more than 500 grams of meth, announced U.S. Attorney Alamdar S. Hamdani.

Jesus Manuel Castillo Jr. pleaded guilty Sept. 28, 2021.

U.S. District Judge Micaela Alvarez has now ordered Castillo to serve 121 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the court heard additional evidence that Jesus Manuel was involved in transporting multiple packages of narcotics over the course of several months.

In June 2020, law enforcement identified two USPS packages that Castillo shipped with a destination for San Antonio. Each contained half a kilogram of meth.

The investigation revealed Castillo would package, sell and transport the narcotics along with his brother Agustin Castillo. In November 2020, law enforcement caught Jesus Castillo in the act transporting a USPS package destined to Florida containing half a kilogram of cocaine.

Agustin Castillo, 38, Monte Alto, had also pleaded guilty and was previously sentenced to 46 months in federal prison.

Previously released on bond, Jesus Castillo was taken into custody following the hearing today where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

The Drug Enforcement Administration conducted the investigation. Assisatnt U.S. Attorney Laura Garcia prosecuted the case.

HOUSTON – A tax preparer has been sent to federal prison following his conviction for willfully preparing a false joint 2017 individual income tax return, announced U.S. Attorney Alamdar S. Hamdani.

Fabrice Mahinga pleaded guilty Nov. 29, 2022.

U.S. District Judge Keith P. Ellison has now ordered Mahinga to serve 33 months in federal prison to be immediately followed by one year of supervised release. At the hearing, the court heard additional evidence that Mahninga had a notable criminal history. In handing down the sentence, the court remarked on the seriousness of Mahinga’s criminal conduct, particularly given his status as a refugee in the United States.

As part of his plea, Mahinga admitted that from 2016 to 2018, he operated Kennedy Tax Service located in Houston. He admitted he often claimed fake Schedule C items, education and fuel tax credits on the returns he prepared.

In 2019, he assisted with the preparation of a tax return that should have resulted in a tax owed of $42. Mahinga added to the return a false Schedule C and false credits that resulted in a false claim for an income tax refund of $4,257 from the IRS. A copy of the return reflected a false income tax refund of a lesser refund - $3,259 - when the refund claimed on the return filed with the IRS was $4,257.

Mahinga took responsibility of $270,612 of loss to the IRS and agreed to pay $182,212 in restitution.

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

IRS - Criminal Investigation conducted the investigation. Former Assistant U.S. Attorney (AUSA) Charles J. Escher and AUSA Christian T. Latham prosecuted the case.

McALLEN, Texas – A 51-year-old Raymondville resident has been sentenced for trafficking drugs, announced U.S. Attorney Alamdar S. Hamdani.

A federal jury deliberated for two hours before convicting Juan Posas Jr. June 27 of trafficking cocaine and conspiracy to do so.

U.S. District Judge Micaela Alvarez has now ordered Posas to serve 162 months in federal prison to be immediately followed by five years of supervised release. At sentencing the Government pointed out Juan Posas knew the consequences of the actions he was taking.

Posas is a former Customs and Border Protection (CBP) officer. At trial, the jury heard that on June 6, 2022, Posas traveled from Raymondville to a Home Depot in Weslaco where he met with Alexis Soria-Soria, 25, a Mexican national illegally residing in the United States. Soria then transferred a box containing approximately 20 kilograms of cocaine into Posas’ truck.

At trial, the jury heard recordings of phone conversations in which Posas helped plan the drug smuggling attempt.

However, the defense attempted to convince the jury that Soria approached him in the parking lot and simply asked if he wanted free fruits, then placed a box of fruits in his car. He said he never checked the box to see what was inside. The jury did not believe his claims and found him guilty as charged.

Posas 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 the Drug Enforcement Administration and the Hidalgo County Sheriff’s Office. Assistant U.S. Attorneys Jongwoo Chung and Jose A. Garcia prosecuted the case.

HOUSTON – A federal jury in Houston has convicted a Texas pharmacist for her role in a pill-mill pharmacy that unlawfully dispensed over 100,000 opioid pills in exchange for cash.

According to court documents and evidence presented at trial, from January 2014 to January 2018, Deanna Winfield-Gates, 54, Houston, was a relief pharmacist at Health Fit Pharmacy (Health Fit), a cash-only, pill-mill pharmacy. Health Fit dispensed controlled substances to drug traffickers in exchange for hundreds of dollars, often based on prescriptions that were fraudulent and issued in the names of physicians whose identities were stolen. Winfield-Gates filled large volumes of cookie-cutter prescriptions for the opioids hydrocodone 10-325mg and oxycodone 30mg and for carisoprodol, alprazolam and promethazine with codeine, often in combination, knowing these controlled substances were likely to be diverted or abused. 

The jury convicted Winfield-Gates yesterday of one count of conspiracy to unlawfully distribute and dispense controlled substances. She is scheduled to be sentenced Jan. 11, 2024. At that time, she faces a maximum penalty of 20 years in prison.

Winfield-Gates was the last-remaining defendant charged in this case. Three others previously pleaded guilty to the conspiracy. 

The Drug Enforcement Administration conducted the investigation.

Trial Attorneys Drew Pennebaker and Courtney Chester of the Criminal Division’s Fraud Section are prosecuting the case.

The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, comprised of 15 strike forces operating in 25 federal districts, has charged more than 5,000 defendants who collectively have billed the Medicare program for more than $24 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.

A federal jury in Houston convicted a Texas pharmacist yesterday for her role in a pill-mill pharmacy that unlawfully dispensed over 100,000 opioid pills in exchange for cash.

According to court documents and evidence presented at trial, from January 2014 to January 2018, Deanna Winfield-Gates, 54, of Houston, was a relief pharmacist at Health Fit Pharmacy (Health Fit), a cash-only, pill-mill pharmacy. Health Fit dispensed controlled substances to drug traffickers in exchange for hundreds of dollars, often based on prescriptions that were fraudulent and issued in the names of physicians whose identities were stolen. Winfield-Gates filled large volumes of cookie-cutter prescriptions for the opioids hydrocodone 10-325mg and oxycodone 30mg and for carisoprodol, alprazolam, and promethazine with codeine, often in combination, knowing these controlled substances were likely to be diverted or abused.  

The jury convicted Winfield-Gates of one count of conspiracy to unlawfully distribute and dispense controlled substances. She is scheduled to be sentenced on Jan. 11, 2024, 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.

Winfield-Gates was the last-remaining defendant charged in this case. Three co-defendants previously pleaded guilty to the conspiracy. 

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 Daniel C. Comeaux of the Drug Enforcement Administration (DEA) Houston Field Division made the announcement.

The DEA investigated the case.

Trial Attorneys Drew Pennebaker and Courtney Chester of the Criminal Division’s Fraud Section are prosecuting the case.

The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, comprised of 15 strike forces operating in 25 federal districts, has charged more than 5,000 defendants who collectively have billed the Medicare program for more than $24 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.

McALLEN, Texas – A 38-year-old Mexican citizen residing in Weslaco has been sent to federal prison for receiving material that contained child pornography, announced U.S. Attorney Alamdar S. Hamdani.

Jose Arturo Barrera-Torres pleaded guilty June 30.

U.S. District Chief Judge Randy Crane has now sentenced Barrera-Torres to 97 months. The court also heard additional information today including victim impact statements detailing the life-long turmoil and fear victim’s feel as a result of their abuse being continuously circulated online. Furthermore, the court heard that Barrera-Torres received, watched and deleted child pornography from the peer to peer platform from 2021 to the most recent downloads in February 2023. Not a U.S Citizen, he is exoected to face reomoval proceedings following his imprisonment. 

Barrera-Torres was further ordered to pay $5,000 in restitution to the victims. During that time, he will have to comply with numerous requirements designed to restrict his access to children and the internet. Barrera-Torres will also be ordered to register as a sex offender.

Between Sept. 12-Oct. 14, 2021, authorities conducted an investigation on a peer-to-peer sharing platform for offenders sharing child pornography. Law enforcement identified a computer downloading videos of child pornography connecting the IP address to a location in Weslaco.

On Feb. 16, authorities contacted Barrera-Torres at that residence, at which time he admitted to using a peer-to-peer file sharing program on his computer to download and watch videos containing child pornography. He also acknowledged deleting the files.

Barrera-Torres received and downloaded approximately 80 to 100 videos of child pornography from 2021 to 2022, with the most recent downloads in February 2023.

Law enforcement discovered 31 video files and 83 image files of child exploitation materials on his laptop. The ages of the victims ranged from over 3 years of age to under 12 years of age.

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

Homeland Security Investigations – Rio Grande Valley Child Exploitation Investigations Task force conducted the investigation with assistance from the Texas Attorney General’s Office.

Assistant U.S. Attorney Alexa D. Parcell 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.

BROWNSVILLE, Texas – A 32-year-old U.S. citizen residing in Brownsville has been ordered to federal prison following his conviction for possession with intent to distribute approximately a kilogram of meth, announced U.S. Attorney Alamdar S. Hamdani.

Raul Perez pleaded guilty Oct. 1, 2019. 

U.S. District Judge Rolando Olvera has now ordered Perez to serve 125 months in federal prison to be immediately followed by five years of supervised release. At the hearing, the court heard additional evidence that detailed his involvement with others in the distribution of meth and other drugs in the Brownsville area.

Perez was the fourth of the conspirators convicted and sentenced for the delivery. Others included Eduardo Guerrero, 33, Rodolfo Garza, 31, and Jacob Trujillo, 24, all of Brownsville who received 90, 144 and 120 months in prison, respectively. The final man - Jetzrael Saldana aka Jetz, 25, also of Brownsville will be sentenced Oct. 18.

In September 2018, law enforcement learned of certain individuals who were interested in selling meth. The undercover investigation led to Guerrero and Garza who later sold 380 grams of meth and one kilogram of meth on two occasions.

They met the buyers at a local business parking lot in Brownsville. Guerrero had displayed a handgun and said it was loaded but that he could be trusted. A black truck then arrived, and the driver – Trujillo - provided a cereal box containing the drugs to Guerrero.

Authorities later learned Perez had provided the drugs and loaned his black truck knowing it would be used for the delivery of the drugs. Saldana was present to provide counter-surveillance to ensure a successful delivery.

Perez 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. Assistant U.S. Attorney Oscar Ponce prosecuted the case.

HOUSTON – Five individuals have been taken into custody for their roles in a $13 million fraud and money laundering conspiracy, announced U.S. Attorney Alamdar S. Hamdani.

The final man charged - William Warren Stredney, 65 - has now surrendered to federal authorities. He is expected to make his initial appearance before U.S. Magistrate Judge Peter Bray at 2 p.m. today.

Authorities arrested Edward Seung Ok, 56, Soran Lim, 55, Anthony Seung Ok, 55, and Wes Moon Ok, 52, in California Sept. 8. All are currently in custody pending further criminal proceedings.

A federal grand jury returned the eight-count indictment Aug. 31. It alleges Edward Seung Ok and Anthony Seung Ok, both of Rolling Hills Estates, California; Lim, Villa Park, California; and Wes Moon Ok, Los Angeles, California, committed one count of conspiracy to commit wire fraud, four counts of wire fraud and one count of conspiracy to commit money laundering. Stredney, Peoria, Arizona, is charged with one count of conspiracy to commit wire fraud and six counts of wire fraud.

According to the indictment, the conspiracy involved a scheme to defraud clients of Bluebell International LLC and Bluebell National LLC which included a Houston-based energy company. Edward Ok and the others falsely claimed they had the ability to provide billions of dollars in loans because they were connected to high net worth international family offices, according to the allegations.

They allegedly charged their clients large upfront fees to apply for the loans knowing they had no intention of providing them. The indictment alleges they diverted the monies for their own personal use.

Edward Ok, Soran Lim, Anthony Ok and Wes Ok then allegedly engaged in a conspiracy to launder the fraudulent proceeds for the purchase of expensive real estate and luxury items. On the date of the arrests, authorities also seized over $1.2 million from a bank account, high-end items alleged to have been purchased with the fraudulent proceeds to include two multi-million dollar homes and a condominium as well as multiple vehicles such as two McLarens, a Lamborghini, Ferrari, Porsche and BMW.

The indictment also alleges Edward Ok committed the offense while incarcerated in prison with the assistance of the others.

Conspiracy to commit wire fraud carries a possible sentence of up to five years in federal prison, while convictions of wire fraud and conspiracy to commit money laundering have 20-year possible terms of imprisonment.

The FBI conducted the investigation. Assistant U.S. Attorney (AUSA) Justin R. Martin is prosecuting the case. AUSA Brandon Fyffe is handling forfeiture matters.

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

LAREDO – A 35-year-old Laredo resident has been charged for making false statements related to health care matters and aggravated identity theft, announced U.S. Attorney Alamdar S. Hamdani.

Law enforcement took Nora Nely Avila into custody today. She is expected to make her initial appearance before U.S. Magistrate Judge Diana Song Quiroga tomorrow morning.

The three-count indictment, returned Sept. 6, alleges Avila impersonated a nurse from January 2017 through December 2019 and performed work she was not qualified to do at multiple home health companies in the Laredo area.

The patients and health care providers were part of the federally-funded Medicaid and Medicare programs, according to the charges. Avila is also alleged to have obtained employment as nurse trainer in the federally-funded Job Corps program and was assigned to train future nurses.

If convicted, Avila faces up to five years in federal prison as well as a possible $250,000 maximum fine for each of the false statements charges. She faces an additional two years in prison for aggravated identity theft which must be served consecutively to any other prison term imposed.

The FBI, Department of Health and Human Services – Office of the Inspector General (OIG), Department of Labor – OIG, Homeland Security Investigations and the Texas Attorney General’s Medicaid Fraud Control conducted the investigation. Special Assistant U.S. Attorney Kathryn Olson 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.

HOUSTON – A 34-year-old resident of Miami, Florida, has been convicted of conspiracy to commit access device fraud and aggravated identity theft, announced U.S. Attorney Alamdar S. Hamdani.

Claude Casimir admitted that in April-May 2019, he and others conspired together in the scheme that targeted the Houston area.  

The investigation began in early 2019 after a local bank discovered numerous fraudulent transactions. They found that individuals had used the PINs of actual bank customers and withdrew money via counterfeit cards.

As part of his plea, Casmir admitted he rented a vehicle to access several ATMs in the Houston area and withdrew cash using counterfeit debit cards. He also drove another individual around the Houston area using the rented vehicle to do the same.

Additionally, he admitted that on May 8, 2019, he used a debit card of another individual without that person’s knowledge or consent. In this single transaction, Casmir attempted to take $2,000. 

U.S. District Judge Eskridge will impose sentencing Dec. 28. At that time, Casimir faces up to five years in federal prison and a possible $250,000 fine for the conspiracy. He will also receive a mandatory two years for the aggravated identity theft which must be served consecutively.

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

The Secret Service conducted the investigation. Assistant U.S. Attorney Rodolfo Ramirez prosecuted the case.

HOUSTON – The charges against 39 individuals are the newest brought in the Department of Justice Criminal Division’s Houston Violent Crime Initiative, conducted in partnership with the U.S. Attorney’s Office for the Southern District of Texas and local, state and federal law enforcement.

The arrests were made after a federal grand jury returned seven separate indictments, with additional arrests made under four court-issued complaints. The defendants are each alleged to be part of larger organizations involved in large-scale drug trafficking or violent robberies. Many of the charged crimes involved the illegal possession or use of firearms.

The joint effort, first announced a year ago in September 2022, addresses violent crime by employing, where appropriate, federal laws to prosecute gang members and associates in the southwest and southeast areas of Houston. As part of the initiative, the Criminal Division has dedicated attorneys and other resources to prosecuting violent offenders and assisting intervention, prevention and reentry efforts to address the root causes of violent crime.

Among the charges are possession with intent to distribute cocaine, fentanyl, meth and other drugs; possessing firearms in furtherance of drug trafficking crimes; conspiracy to commit Hobbs Act robbery; felon in possession of a firearm and carjacking.

During the investigations and arrests, law enforcement seized 79 firearms, including three machineguns made by attaching a machine conversion device (MCD) to a semi-automatic firearm and three stand-alone machinegun conversion devices not attached to firearms. Also seized were a silencer, three ghost guns, an inert hand grenade, and body armor. Drugs and related items seized included approximately 248 kilograms of meth, including meth pills some of which laced with fentanyl; over 1.7 kilograms of fentanyl, heroin, cocaine, and PCP, as well as four pill presses and over $110,000 in cash.

The FBI, Houston Police Department, Drug Enforcement Administration, Homeland Security Investigations and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigations with the assistance of the Harris County Sheriff’s Office, Texas Department of Public Safety, U.S. Postal Inspection Service, Harris County Constable’s Office (Precincts 3, 4, and 5), Montgomery County Constable’s Office (Precinct 4), U.S. Marshals Service, Waller County Sheriff’s Office, Cy-Fair Independent School District Police Department and the Texas Anti-Gang Center .

Assistant U.S. Attorneys Kelly Zenon, John Ganz and Carrie Wirsing are prosecuting the cases along with Trial Attorneys Sheila Lafferty, Ralph Paradiso, Anthony Kaplan and Jennifer Weinhold of the Criminal Division’s Organized Crime and Gang Section.

Charges in indictments and complaints are merely allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

The charges brought against 39 individuals are the newest brought in the Justice Department Criminal Division’s Houston Violent Crime Initiative, conducted in partnership with the U.S. Attorney’s Office for the Southern District of Texas and local, state, and federal law enforcement.

The arrests were made after a federal grand jury returned seven separate indictments, with additional arrests made under four court-issued complaints. The defendants are each alleged to be part of larger organizations involved in large-scale drug trafficking or violent robberies. Many of the charged crimes involved the illegal possession or use of firearms.

The joint effort, first announced a year ago in September 2022, addresses violent crime by employing, where appropriate, federal laws to prosecute gang members and associates in the southwest and southeast areas of Houston. As part of the initiative, the Criminal Division has dedicated attorneys and other resources to prosecuting violent offenders and assisting intervention, prevention, and reentry efforts to address the root causes of violent crime.

Among the charges are possession with intent to distribute cocaine, fentanyl, meth, and other drugs; possessing firearms in furtherance of drug trafficking crimes; conspiracy to commit Hobbs Act robbery; and felon in possession of a firearm and carjacking.

During the investigations and arrests, law enforcement seized 79 firearms, including three machineguns made by attaching a machinegun conversion device (MCD) to a semi-automatic firearm and three stand-alone machinegun conversion devices not attached to firearms. Also seized were a silencer, three ghost guns, an inert hand grenade, and body armor. Drugs and related items seized included approximately 248 kilograms of meth, including meth pills some of which laced with fentanyl; over 1.7 kilograms of fentanyl, heroin, cocaine, and PCP, as well as four pill presses and over $110,000 in cash.

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, Acting Special Agent in Charge David Martinez of the FBI Houston Field Office, Houston Police Chief Troy Finner, Principal Deputy Administrator George Papadopoulos of the Drug Enforcement Administration (DEA), Special Agent in Charge Mark Dawson of Homeland Security Investigations (HSI) Houston, and Special Agent in Charge Fred Milanowski of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Houston Division made the announcement.

The FBI, Houston Police Department, DEA, HSI, and ATF investigated the cases with the assistance of the Harris County Sheriff’s Office, Texas Department of Public Safety, U.S. Postal Inspection Service, Harris County Constable’s Office (Precincts 3, 4, and 5), Montgomery County Constable’s Office (Precinct 4), U.S. Marshals Service, Waller County Sheriff’s Office, the Cy-Fair Independent School District Police Department, and the Texas Anti-Gang Center (TAG).

Trial Attorneys Sheila Lafferty, Ralph Paradiso, Anthony Kaplan, and Jennifer Weinhold of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Kelly Zenon, John Ganz, and Carrie Wirsing for the Southern District of Texas are prosecuting the cases.

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

HOUSTON – A 25-year-old Huntsville resident has been ordered to federal prison for receiving child pornography as well as multiple counts of cyberstalking, announced U.S. Attorney Alamdar S. Hamdani.

Kody Nicholas Bohac pleaded guilty Dec. 12, 2022.

Today, U.S. District Judge Andrew S. Hanen sentenced Bohac to a total 121-month term of imprisonment. Bohac was further ordered to pay $5,170 in restitution to a known victim and 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. Bohac will also be ordered to register as a sex offender.

At the hearing, the court also considered additional information including multiple victim impact statements detailing how Bohac’s conduct affected them. Portions of the statements included how Bohac even went so far as to threaten to rape and murder them if they didn’t comply with his demands. As a result of Bohac’s conduct, many victims suffer from anxiety, depression, suicidal thoughts, humiliation, ruined relationships, fear and have sought counseling. 

The court also heard how sextortion cases are an increasingly deadly type of crime that target young people. The perpetrators use several online mediums of communication, including social networking apps, messaging apps, video voice calls, email, dating and gaming apps. Victims often feel helpless, ashamed, guilty and embarrassed and are reluctant to report such conduct to law enforcement. 

“Bohac used social media accounts, smart phones and laptops as weapons to terrorize and humiliate young women, all for his sick amusement.  Sextortion is ruining young people’s lives at an alarming rate, pushing some to suicide; deaths that are wholly preventable and completely tragic,” said Hamdani. “As the U.S. Attorney for the Southern District of Texas, I, and the prosecutors in this office, are committed to bringing people like Bohac out of the shadows of internet platforms into justice’s bright light. And as a father, I’m thankful one more monster is off our streets.”    

“This is your typical sextortion case,” said Acting Special Agent in Charge David Martinez of the FBI Houston field office. “The individual behind this cyberstalking case took advantage of his young victims by tricking them into sending him compromising content of themselves. He then took pleasure in terrorizing them and shaming them personally. Unfortunately, we’re seeing more and more of these types of cases and too many victims of sextortion who succumb to the shame and take their own lives.”

Bohac stalked an out-of-state woman over social media and threatened to post nude photographs of her on the internet if she did not contact him. She did not respond. Subsequently, Bohac posted the images on the internet.

At the plea hearing, Bohac admitted to the stalking through social media and sending her nude images of herself and threatening to make them public if she did not contact him. He also said he offered to pay multiple females online for nude photos. When they complied, he refused to pay, demanded additional nude photos and threatened to post them online if they did not contact him. 

He ultimately admitted to stalking approximately 20 females on social media, demanding they send additional nude photos, wanting to meet them in person and to call him “daddy.” When they refused, he posted the already obtained nude photos online, threatened to ruin their lives, sent photos to their school, families and friends and created fake online accounts using their names with sexually explicit references.    

The investigation revealed multiple social media messages on his phone in which Bohac stalked numerous victims. They also found images and videos of child pornography on his cell phone which depicted minor females engaged in sexual acts on adult males. 

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

The FBI-Bryan Resident Agency and the FBI-Philadelphia Field Office conducted the investigation with assistance from the Sam Houston State University Police Department.  

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

HOUSTON – A 51-year-old Houston man has admitted his role in an ongoing cocaine distribution scheme that spanned more than nine years, announced U.S. Attorney Alamdar S. Hamdani.

Leonel Mata Luna admitted he was a member of a drug trafficking organization while residing in Monterrey, Nuevo Leon, Mexico. His role was to oversee the receipt and packaging of cocaine in Mexico and coordinate its transportation to the U.S. border. There, it was smuggled into the United States in vehicles on a monthly basis during the course of the conspiracy.

Luna received cocaine from members of the Gulf Cartel. The drugs eventually ended up in Houston where it was further distributed to others across the United States.

In December 2015, law enforcement agents seized 176 kilograms of cocaine, two kilograms of meth and $3.5 million in drug proceeds after executing search warrants at three stash houses in Houston the organization controlled.

Luna was a fugitive for seven years until his arrest in Monterrey, Mexico, in September 2022 as part of a joint Mexican-American law enforcement operation. He was subsequently removed from Mexico and transported to Houston for prosecution. To date, 15 have been convicted in relation to the conspiracy.

Sentencing has been set for Dec. 11 before U.S. District Andrew S. Hanen. At that time, Luna faces a mandatory minimum of 10 years and up to life in prison as well as a $10 million maximum fine.

He will remain in custody pending that hearing.

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

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

The specific mission of the Houston Strike Force is to disrupt and dismantle the drug trafficking organizations that designated Consolidated Priority Organization or Regional Priority Organization Targets head with their affiliates and that impact Houston and south Texas.

Assistant U.S. Attorneys Casey N. MacDonald and Anibal J. Alaniz are prosecuting the case.

McALLEN, Texas – A 50-year-old man from Rio Grande City has pleaded guilty to extortion under color of law, announced U.S. Attorney Alamdar S. Hamdani.

Victor Canales was a Starr County attorney from 2005 to 2022. In that role, he was responsible for prosecuting misdemeanor crimes.

In September 2021, a woman reached out to Canales for assistance because her son had been charged with three misdemeanor offenses in Starr County. He said he could help her and that for $1500, he could take care of the Starr County tickets. 

The mother gave Canales three money orders totaling $1500. He deposited the proceeds into his own checking account and used it for his own personal needs rather than depositing the monies into the Starr County account. 

Canales then sent a series of letters to Cameron County indicating the three charges against the woman’s son would be dropped.

U.S. District Judge Ricardo Hinojosa accepted the plea and set sentencing for Dec. 15. At that time, Canales faces up to 20 years in prison and a possible $250,000 maximum fine.

Canales was permitted to remain on bond pending sentencing.

The FBI worked in partnership with the Texas Office of the Attorney General to conduct the Border Corruption Task Force investigation with the assistance of Organized Crime and Drug Enforcement Task Forces agencies including the Drug Enforcement Administration, Homeland Security Investigations, Texas Department of Public Safety - Criminal Investigations and Texas Rangers.

Assistant U.S. Attorney Pat Profit is prosecuting the case.

HOUSTON – A federal grand jury has returned indictments charging six Cuban nationals who resided in Houston with illegal trafficking of migratory songbirds, announced U.S. Attorney Alamdar S. Hamdani.

Over the past week, authorities took into custody Antonio Cabrero Ruano, 56, Roberto Guimary Machado, 59, Luis Valdez Machado, 22, Iran Almarales Garcia, 53, Ediel Barroso Quintero, 27, and Alexander DeJesus Lechuga, 45. 

The six seperate indictments, returned Aug. 24, allege violations of the Migratory Bird Treaty Act and/or the Lacey Act.  

The scheme allegedly involved the illegal trapping and selling of protected songbirds, including indigo buntings, painted buntings, rose-breasted grosbeaks, blue grosbeaks and house finches, among others. 

The Fish and Wildlife Service (FWS) reports that the birds are often used in singing competitions in which the participating owners gamble thousands of dollars on the winning bird, a common practice in Cuba and elsewhere. The birds migrate from Canada, through Texas, to South America. They are trapped as they pass through the Houston area, commonly using a live “bait bird” whose singing attracts other birds to the trap.  

The investigation led to the seizure of over 300 illegally trapped songbirds. They were turned over to the Houston Zoo and Moody Gardens where they were evaluated and photographed. Healthy birds were released to the wild, while those that were too sick or injured to survive unaided will remain under the care of the zoos.

According to FWS, the illegal trapping has a significant impact on the wild songbird populations. The birds are poorly suited to captivity and typically die soon after being confined to a cage.

“We are pleased to see a positive outcome in this case as the plight of native birds is just now becoming clear. It is our core role as an Association of Zoos and Aquariums accredited organization to preserve natural resources and protect threatened and endangered wildlife,” said General Curator Greg Whittaker of Moody Gardens. 

     

“The illegal wildlife trade doesn’t just happen behind closed doors – many of our native species are being traded out in the open in flea markets and online marketplaces like Facebook,” said FWS Special Agent in Charge Victoria Owens. “In addition to seeking justice for our native wildlife and the American public, we want the prosecution of these cases to help educate the public about wildlife laws and deter people from committing these crimes in the future. We will pursue and hold accountable anyone who violates fish and wildlife laws for commercial gain.”

The Migratory Bird Treaty Act was enacted in 1918 for the protection of migratory birds. The Lacey Act prohibits trafficking in wildlife that was taken in violation of federal, state, tribal or foreign law. 

If convicted, they each face a maximum penalty of five years in prison for violating the Lacey Act, two years for violating the Migratory Bird Treaty Act and possible fines of up to $250,000.

Two others - Reydel Cabrales Rosa, 36, a Cuban national, and Luis Alonzo Martinez, 56, an El Salvadorian national, who resided in Houston - were previously charged and have pleaded guilty.

FWS conducted the investigation with the assistance of Texas Game Wardens. Assistant U.S. Attorney Robert S. Johnson is prosecuting the case.

HOUSTON - A 48-year-old Iola resident has pleaded guilty to interstate transportation of waging paraphernalia, announced U.S. Attorney Alamdar S. Hamdani.

Marcos Trevino admitted to operating a raffle that offered a chance to win a limited edition Dodge Challenger SRT Demon automobile from 2018 to 2022. He promoted it throughout the United States on various websites, social media and at auto shows. The raffle’s website made it appear as though the participant was not purchasing a ticket. They were supposedly getting a koozie which, in turn, would grant them one entry for the drawing. The total cost of each of the beverage holders was $105.

The rules claimed no purchase was necessary and that a purchase would not improve chance of winning. However, there was no alternate means of entry other than the purchase of the koozie.  

Despite the raffle being in existence for almost four years, there was no drawing or receipt of prizes by any participants. No one has ever received a koozie. Trevino still had the Dodge Demon on his property at the time of his arrest. According to the website, total ticket sales reached 765 (resulting in funds totaling $80,325). 

Such a raffle is illegal for to conduct for various reasons. A charitable organization does not run it, there was no date was set for the drawing, there was no end date, proceeds were not spent on a lawful purpose, and it included statewide and interstate advertising. 

In addition, although the website claimed that a money back guarantee, there was no method described for a participant to get his/her money back.   

U.S. District Judge Alfred Bennett accepted the plea and set sentencing for Dec. 7. At that time, Lopez faces up to five years in federal prison as well as a possible $250,000 maximum fine. He could also be ordered to forfeit the earnings from the raffle and provide restitution to the participants. 

Previously released on bond, Trevino was permitted to remain on bond pending that hearing. 

The FBI conducted the investigation. Assistant U.S. Attorney Adam L. Goldman is prosecuting the case.

McALLEN, Texas – A 22-year-old Pharr resident has been ordered to federal prison for his conviction of smuggling goods from the United States, announced U.S. Attorney Alamdar S. Hamdani.

Pedro Cruz Almeida Jr. pleaded guilty April 25, admitting he attempted to export .50 caliber tracer-equipped linked ammunition without a license to export.

U.S. District Judge Micaela Alvarez has now ordered him to serve 50 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the court heard additional evidence regarding Almeida’s degree of involvement in the smuggling scheme and how he executed his role in the scheme while simultaneously attending the police academy. In handing down the sentence, the court noted how Almeida – being from the area – knew the dangerousness of this quantity and this type of ammunition in the hands of the cartel.

“Almeida lived a double life,” said Hamdani. “While training to be a police officer, he attempted to smuggle hundreds of rounds of lethal ammunition into Mexico. That all changed with his arrest and conviction, trading a blue police uniform for a convict’s orange jumpsuit. Criminals like him could have eroded the public trust and we are breathing a sigh of relief that he was stopped before causing more harm.”

On Feb. 3, Almeida was driving a red Hyundai Elantra, at which time authorities conducted a traffic stop.

A subsequent search led to the discovery of 600 rounds of .50 caliber ammunition in the vehicle. Almeida admitted he intended to transfer the ammunition to an individual waiting at the Port of Entry driving a vehicle with a Tamaulipas, Mexico, license plate. In Mexico, he received cash to order the ammunition. Almeida admitted he ordered ammunition approximately 30 occasions over the past year.

On Feb. 9, agents subsequently seized an additional 300 rounds of .50 caliber ammunition postmarked to Almeida.

At the time of the plea, Almeida informed the court he was attending a local police academy at the time of his arrest.

Previously released on bond, he was taken into custody following the sentencing today where he will remain 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 the Hidalgo County Constable’s Office. Assistant U.S. Attorneys Peter I. Brostowin and Lee Fry prosecuted the case.

This case is being prosecuted as part of the joint federal, state and local Project Safe Neighborhoods (PSN) Program. In May 2021, Attorney General Merrick B. Garland announced a new effort to reduce violent crime, including the gun violence that is often at its core. Integral to that effort was the reinvigoration of PSN, a two-decade old, evidence-based and community-oriented program focused on reducing violent crime. The updated PSN approach, outlined in the department’s Comprehensive Strategy for Reducing Violent Crime is guided by four key principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence, setting focused and strategic enforcement priorities and measuring the results of our efforts. The fundamental goal is to reduce violent crime, not simply to increase the number of arrests or prosecutions.

LAREDO, Texas – A 50-year-old resident of Guanajuato, Mexico, has been ordered to prison for his role in a conspiracy to possess with the intent to distribute meth, announced U.S. Attorney Alamdar S. Hamdani.

Jose Domingo Ibarra Martinez pleaded guilty April 26, 2021.

U.S. District Judge Diana Saldana has now ordered him to serve 120 months in federal prison to be immediately followed by five years of supervised release. At the hearing, the court heard about Martinez duties within the organization including his role in coordinating the transport of drugs with other truck drivers.

From August 2015 until March 2018, Martinez and others were engaged in the importation of large quantities of meth into the United States via the ports of entries in Laredo. The drug loads were further distributed throughout the United States. 

Martinez admitted to smuggling various drug-laden items into the country,  including over 150 vehicle batteries during the course of the conspiracy.  The investigation revealed the batteries originated from Michoacán, Mexico with an average load of 7.5 kilos of meth. 

Martinez admitted the organization had imported more than 1,000 drug-laden items. 

Two others were previously sentenced - David Almanza, 43, and Eduardo Coronel-Cardoza, 35, both of Nuevo Laredo, Mexico, received 198 months and 78 months, respectively.

The Drug Enforcement Administration (DEA) led the Organized Crime and Drug Task Forces (OCDETF) operation with the assistance of Laredo Police Department and sheriff’s offices in Victoria and Williamson Counties. Assistant U.S. Attorney Anthony J. Evans is prosecuting the case.

It is part of Project Python, a nationwide DEA-led operation the Department of Justice announced in March 2020. The Project Python operation targeted the Cártel de Jalisco Nueva Generación and has resulted in more than 600 arrests, 350 indictments as well as significant seizures of money and drugs across the United States.

BROWNSVILLE, Texas – The operators of a durable medical equipment company have been charged with defrauding Medicare, announced U. S. Attorney Alamdar S. Hamdani.

Authorities took Maria Luisa Yzaguirre, 43, Harlingen, into custody this morning. She is expected to make her initial appearance before U.S. Magistrate Judge Ignacio Torteya III at 9:30 a.m. Aug. 31.

Jeremiah Yzaguirre, 44, also of Harlingen, was arrested Aug. 22.  

The 16-count indictment charges the operators with conspiracy to commit health care fraud, aggravated identity theft and money laundering.

The charges allege that between 2019 and 2023, the Yzaguires submitted over $14 million in claims to Medicare for power wheelchairs, power scooters, parts and repairs for 37 individuals. In multiple instances, they allegedly billed Medicare more than $600,000 for parts and repairs for one Medicare beneficiary and falsely claimed to have replaced expensive parts on numerous occasions.

According to the indictment, in one instance they billed Medicare approximately $736,072 in parts and repairs for one patient - submitting repair claims 132 times for the expandable controller, 107 times for the motor-gearbox and 84 times for the battery. The patient was bed bound and did not have access to the power wheelchair when the repairs were allegedly conducted.

Additionally, the indictment alleges they used proceeds of the fraud scheme to purchase millions of dollars in real estate, cryptocurrency, stock, a luxury sports car and expensive movie memorabilia. 

If convicted, they each face up to 10 years in prison for health care fraud and money laundering and a mandatory two years for each count of aggravated identity theft which muse be served consecutively to any other prison term imposed.

The FBI, Department of Health and Human Services-Office of Inspector General, Texas Health and Human Services, Texas Attorney General - Medicaid Fraud Control Unit and Texas Department of Insurance conducted the investigation.

Assistant U.S. Attorneys Andrew Swartz and Ana Cano 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.