Southern District of Texas

CORPUS CHRISTI, Texas – A 33-year-old Humble man has been ordered to federal prison following his conviction of smuggling 20 non-U.S. citizens, announced U.S. Attorney Alamdar S. Hamdani.

Vince Ruiz III pleaded guilty July 6, 2022.

Today, U.S. District Judge Nelva Gonzales Ramos ordered Ruiz to serve 18 months in federal prison to be immediately followed by two years of supervised release. At the hearing, the court heard that in the event of an emergency or accident, the smuggled individuals would not have been able to extricate themselves from the inside of the trailer. In discussing the factors impacting the sentence, the court remarked on Ruiz’s use of his commercial driver’s license as a special skill in committing the offense.

On Oct. 5, 2021, Ruiz drove a white Freightliner tractor pulling two trailers marked “FedEx Ground” into the primary inspection lane at the Border Patrol (BP) checkpoint located near Falfurrias. At that time, Ruiz possessed a valid commercial driver’s license. During inspection, a K-9 alerted authorities to one of the trailers.  

A subsequent search of the trailer revealed 20 undocumented individuals inside behind a locked door, including a 16-year-old unaccompanied minor. Law enforcement also discovered 15 grams of marijuana and five grams of cocaine.

At the time of his plea, Ruiz admitted he drove to Edinburg to pick up the trailer and return to Cypress. During the trip, he pulled over to the side of the road in a secluded area where the undocumented individuals were then loaded into the trailer.

They were later determined to be illegally present in the country.

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

Homeland Security Investigations conducted the investigation. Former Assistant U.S. Attorney (AUSA) J. Parker Gochenour prosecuted the case. AUSA Tyler Foster handled the sentencing.  

HOUSTON – A 41-year-old woman who illegally resided in Houston has admitted to conspiracy to commit wire fraud, announced U.S. Attorney Alamdar S. Hamdani.

Leidy Areli Hernandez Lopez pleaded guilty to conspiring with others residing in the Southern District of Texas and elsewhere to buying and selling thousands of fraudulent Texas-issued temporary buyer tags. None of the paper tags issued were for legitimate vehicle purchases and some were for cars outside of Texas.

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

As part of her plea, Lopez acknowledged she and her co-conspirators communicated through email to send and deliver fraudulent buyer tags to purchasers all over the United States, including New York and Washington, D.C.

She also admitted her co-conspirators submitted falsified information to the Texas Department of Motor Vehicles to obtain a fraudulent used car dealer license in order to print and sell state-issued buyer tags and shared the fraud proceeds via electronic payment services such as Cash App and Zelle.

U.S. District Judge George C. Hanks Jr. accepted the plea and will impose sentencing Oct. 2. At that time, Lopez faces up to five years in federal prison and a possible $250,000 maximum fine.

Lopez was permitted to remain on bond pending that hearing.

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

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

McALLEN, Texas – A 22-year-old man has been arrested for conspiracy to transport illegal aliens, announced U.S. Attorney Alamdar S. Hamdani.

Authorities took Luis Ruiz-Valadez into federal custody today. He is expected to make his initial appearance before U.S. Magistrate Judge Juan F. Alanis at 9 a.m.

The criminal complaint alleges on April 18, authorities observed several subjects breach the border wall near Hidalgo and run to a nearby parking lot. There, Ruiz-Valadez was allegedly waiting in a red Ford F-150 pick-up truck. 

According to the charges, Ruiz-Valadez fled the scene at a high rate of speed and failed to yield when law enforcement attempted to conduct a traffic stop for speeding. Throughout the high-speed pursuit, they observed three subjects laying in the bed of the truck, according to the complaint.  

Ruiz-Valadez allegedly crashed into a cement barricade on Expressway 83 and was taken into custody.

If convicted, Ruiz-Valadez faces up to 10 years in federal prison and a possible $250,000 maximum fine.

Border Patrol conducted the investigation with the assistance of the Texas Department of Public Safety. 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.

CORPUS CHRISTI, Texas – A 48-year-old Edinburg resident has been ordered to federal prison following his conviction for obstruction of justice, announced U.S. Attorney Alamdar S. Hamdani.

Jose Manuel Gutierrez pleaded guilty Jan. 26.  

Today, U.S. District Judge Nelva Gonzales Ramos ordered Gutierrez to serve 14 months in federal prison followed by two years of supervised release. At the hearing, the court heard additional evidence regarding Gutierrez’s criminal history which includes convictions for assault, money laundering and aiding and abetting the entry of illegal aliens. In handing down the sentence, the court noted the concerning nature and circumstances of the crime.

“This human smuggler tried to get witnesses to lie,” said Hamdani. “My office is not going to stand by and let intimidation replace the truth. The seriousness of his threats to justice merit the sentence imposed today.”

At the time of his plea, Gutierrez admitted he attempted to influence an official proceeding knowingly and dishonestly, with intent to undermine the proceeding.

On April 11, 2022, Gutierrez arrived at the Falfurrias Border Patrol (BP) checkpoint. There, authorities ultimately found 10 people, illegally present in the United States, concealed in the sleeper portion of the tractor he was driving. Two of them described how they were transported and identified Gutierrez in a photo-lineup as the driver who instructed them to get into the vehicle and covered them with blankets.  

However, the two witnesses later changed their accounts, reporting they did not know Gutierrez and had no contact with them.

The investigation revealed Gutierrez had provided the names of the two witnesses to a family member after their initial statements to authorities. He instructed the individual to give the names to another person who could then “work” them. The witnesses later claimed they had changed their statements because Gutierrez had told them to do so. While there were no direct threats, both reported they were afraid something might happen to them if they had not done so.  

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

BP conducted the investigation. Assistant U.S. Attorneys Liesel Roscher and John Marck prosecuted the case.

CORPUS CHRISTI – The final members of a Corpus Christi drug trafficking organization have been ordered to federal prison following their convictions of conspiracy to possess with intent to distribute cocaine and money laundering, announced U.S. Attorney Alamdar S. Hamdani.

Gilbert DeLosSantos, 51, and his wife, Corina DeLosSantos, 56, pleaded guilty Nov. 7, 2022, while Lawrence Guevara, 52, and Amber Ramirez, 35, entered their pleas Sept. 29, 2022. All are from Corpus Christi.

Today, U.S. District Judge David Morales found Gilbert DeLosSantos to be a leader in the conspiracies and sentenced him to a total of 180 months in federal prison to be immediately followed by 10 years of supervised release. Corina DeLosSantos received a 54-month-term of imprisonment followed by three years of supervised release for her role in the money laundering conspiracy.

Judge Morales previously sentenced Guevara and Ramirez for their respective involvement in the drug conspiracy to 120 and 51 months, respectively.

As a result of the criminal convictions in this case, approximately $13,000 in U.S. currency and six pieces of real property have been forfeited to the United States.

In September 2019, a seizure of cocaine at the Sarita Border Patrol checkpoint sparked an investigation into a drug trafficking operation that Gilbert DeLosSantos ran in Corpus Christi. This resulted in the identification of drug distribution locations and multiple individuals ranging from street-level dealers to mid-level suppliers.

On May 10, 2022, authorities conducted four federal search warrants at locations in the Corpus Christi area. At one, they arrested Guevara and Ramirez who were workers at the residence and seized 634 grams of cocaine, 331 grams of heroin, 31 grams of crack cocaine, $1,170 U.S. currency and several drug ledgers.

Law enforcement later arrested DeLosSantos at his residence and seized approximately $12,000 in U.S. currency, multiple phones and electronic devices, Nueces County property tax statements and banking records.

The investigation led authorities to believe DeLosSantos and his organization were selling approximately one kilogram each of cocaine and heroin per week.

Previously released on bond, both were permitted to remain on bond and voluntarily surrender at a later date.

Homeland Security Investigations and the Drug Enforcement Administration conducted the Organized Crime Drug Enforcement Task Forces (OCDETF) investigation dubbed Operation New Trap on the Block with the assistance of Customs and Border Protection, Corpus Christi Police Department and Texas Department of Public Safety.

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

Assistant U.S. Attorney Lance Watt prosecuted the case.

HOUSTON – A 32-year-old Mexican citizen who illegally resided in Houston has been ordered to federal prison following his conviction for conspiracy to distribute meth during a transaction that occurred in a Houston residential neighborhood, announced US Attorney Alamdar S. Hamdani.

Ismael Salas Navarro pleaded guilty Nov. 17, 2022.

Today, U.S. District Judge David Hittner sentenced Navarro to a total of 135 months in federal prison. Not a U.S. citizen, he is expected to face removal proceedings following his imprisonment.

“Mexican cartels and their drugs are not welcome in our cities,” said Hamdani. “Cartels, like the Gulf Cartel, endanger the lives of our citizens and loved ones. Today’s sentence sends a strong message to criminals like Navarro that our communities will not tolerate the scourge of drug traffickers.”

Navarro’s arrest and ultimate conviction stems from an investigation into individuals affiliated with the Gulf Cartel operating in Houston. On Jan. 25, 2021, law enforcement recorded Navarro ordering two kilograms of crystal meth from a co-conspirator. Authorities then watched as the narcotics were delivered to Navarro in a quiet Houston neighborhood.

They took him into custody before he could drive off with the narcotics.

Navarro 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 Drug Enforcement Administration, FBI, Houston Police Department, Harris County Precinct 5 Constable’s Office and the Harris County Sheriff’s Office conducted this investigation. Assistant U.S. Attorney Shelley J. Sullivan prosecuted the case.

HOUSTON – A 34-year-old Houston resident has been handed a significant sentence for his role in a meth distribution conspiracy, announced U.S. Attorney Alamdar S. Hamdani.  

Abril Pineda-Ortiz aka Carlos Raudel Pineda-Ortiz pleaded guilty May 13, 2021. 

Today, U.S. District Judge Lee H. Rosenthal ordered Pineda-Ortiz to serve a 130-month-term of imprisonment to be immediately followed by five years of supervised release. In imposing the sentence, the court found that Pineda-Ortiz was the source of supply in transactions involving significant amounts of meth. In handing down the sentence, the court noted the devastating effects that meth has had on people and communities.   

To date, more than 30 people have been convicted in the related drug conspiracies involving meth, cocaine and heroin. With the sentence today, 20 have now been sent to prison. 

“These traffickers will pay with their freedom,” said Hamdani, “to the tune of a combined sentence of more than 2000 months in federal prison for infecting our communities with hundreds of kilograms of meth, fentanyl, cocaine and heroin.”

“The success of these investigations and the corresponding sentences serve as an example of the impact multiple agencies can have when they join forces,” said Special Agent in Charge Daniel C. Comeaux of the Drug Enforcement Administration (DEA). “This operation dismantled the activities of a dangerous criminal organization that was responsible for smuggling and distributing hundreds of pounds of illicit narcotics throughout the State of Texas. The DEA will continue to focus our resources on drug trafficking organizations that oversee, coordinate and facilitate the distribution of illegal drugs in our communities.”  

At the time of the plea, Pineda-Ortiz admitted she supplied meth in multiple drug transactions involving co-conspirators Juan Carlos Salinas, 41, and Crystal Lynn Harrold, 42, both of Houston.

Authorities also executed a search warrant at the residence of Pineda-Ortiz where they found and seized a firearm, an additional 1,857 grams of meth and drug sale paraphernalia.

The investigation into these three individuals began in 2015. Over the next two years, law enforcement was able to execute operations aimed at curtailing the organization’s sale of meth, cocaine, heroin, and fentanyl. 

As a result of the investigations, law enforcement seized 82.3 kilograms of meth, 16.4 kilograms of fentanyl, 176.7 kilograms of marijuana, 83.9 kilograms of cocaine, 31 kilograms of heroin and one kilogram of GHB as well as $586,706.61 in assets.

The combined sentences in the related cases thus far have exceeded 2000 months in federal prison with several receiving sentences well in excess of 10 years. One was ordered to serve 222 months.

The DEA conducted the initial investigations along with the Bureau of Alcohol, Tobacco, Firearms and Explosives; FBI; police departments in Houston and Huntsville; sheriff’s offices in Fort Bend and Harris counties; and Texas Department of Public Safety. 

The subsequent DEA-led Organized Crime Drug Enforcement Task Forces (OCDETF) investigations were dubbed Operation Goody Two Shoes and Beverly Hills 90210.

Assistant U.S. Attorneys Sharad Khandelwal, Carolyn Ferko and Michael Day are prosecuting the cases.

OCDETF identifies, disrupts and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage.

McALLEN, Texas – A 19-year-old Edinburg resident has pleaded guilty to smuggling goods from the United States, announced U.S. Attorney Alamdar S. Hamdani.

Peter Deshaewn Maldonado-Guillen admitted to attempting to export five AK-47 rifle barrels without a license or written approval.

On Feb. 14, Maldonado-Guillen crossed through the Hidalgo Port of Entry (POE). However, Mexican authorities selected his vehicle for inspection and denied entry into Mexico. He was not in possession of the appropriate documentation for the vehicle and had to return to the United States. 

Once back at the Hidalgo POE, he denied having any firearms, but U.S. authorities referred him and his vehicle for secondary inspection.

During a search of the vehicle, law enforcement discovered five AK-47 barrels in the quarter panel area of the vehicle. Maldonado-Guillen admitted to taking possession of the weapon parts in the United States, loading them into his vehicle and transporting the weapon parts into Mexico.

AK-47 barrels are designated as defense articles on the U.S. Munitions List. Maldonado-Guillen did not obtain consent or a license to export the weapon parts into Mexico.

U.S. Chief District Judge Randy Crane will impose sentencing July 13. At that time, Maldonado-Guillen faces up to 10 years in federal prison and a possible $250,000 maximum fine.

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

Homeland Security Investigations conducted the investigation with the assistance of Customs and Border Protection. Assistant U.S. Attorney Jose A. Garcia is prosecuting the case.

HOUSTON – A total of five people, all illegally residing in Houston, have been sentenced in connection with the April 2021 discovery of nearly 100 undocumented aliens in a suburban Houston residence, announced U.S. Attorney Alamdar S. Hamdani. 

The leader in the conspiracy - Henry Licona-Larios, 34, Copan, Honduras - pleaded guilty May 24, 2022.

Today, U.S. District Judge Keith Ellison ordered him to serve 41 months in federal prison. Not a U.S. citizen, he is expected to face removal proceedings following his imprisonment.

At the hearing, the court heard additional evidence that detailed the inhumane conditions to which these undocumented aliens were subjected and that Licona-Larios was connected to an additional stash house discovered in December 2020. In handing down the sentence, the court noted the seriousness of the offense and Licona-Larios’s verbal and physical mistreatment of the undocumented aliens.

Four others had also pleaded guilty for their respective roles and were previously sentenced. Those included Marina Garcia-Diaz, 24, San Miguel, El Salvador, who received 27 months as well as Marcelo Garcia-Palacios, 23, Oaxaca, Mexico; Kevin Licona-Lopez, 27, Santa Barbara, Honduras; and Marco Baca-Perez, 22, Michoacan, Mexico, all of whom were ordered to serve 30 months. All are also expected to face removal proceedings.

“You cannot trust a human smuggler. Giving them money will put your life in danger,” said Hamdani. “These five people preyed on the desperation of foreign nationals hoping to get into the country. This sentence makes it clear - we will not allow the victimization of people for profit.”

The investigation began April 30, 2021, when authorities learned of a kidnapping. A woman reported that she had paid several thousand dollars for her brother to be smuggled into the country. 

However, the smugglers demanded more money before they would release him. They also threatened to harm him if the money was not paid.

The investigation led to a residence on Chessington Drive in Southwest Houston. There, authorities ultimately found 97 illegal aliens held in two rooms of the residence. The rooms had deadbolts on the doors facing the outside which prevented escape. All of the male individuals were in their undergarments. One was told if the money was not paid, he would be put in “4 pieces of wood.” 

All five have been and will remain in custody.

Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Karen M. Lansden prosecuted the case.    

HOUSTON – A 31-year-old Houston resident has entered a guilty plea to two counts of Hobbs Act robberies as well as discharging a firearm during one of the crimes, announced U.S. Attorney Alamdar S. Hamdani.

Dominique Andrews robbed two Auto Zone locations in Houston.

On Feb. 4, 2022, Andrews entered the Auto Zone on Cullen Boulevard and robbed an employee at gunpoint. He produced a silver semi-automatic firearm and demanded money from the victim. Fearing for her life, the employee complied. Andrews also took two car scanners. During the robbery, he discharged a round from his firearm.

The same day, Andrews went to another Auto Zone on Telephone Road. He again produced a silver semi-automatic firearm and demanded money from the employee victim. Andrews discharged several rounds from the firearm he was carrying while in the commission of the robbery.

U.S. District Judge David Hittner accepted the plea and set sentencing for July 27. At that time, Andrews faces up to 20 years for the robberies as well as a mandatory minimum of 10 years and up to life for the firearms charge which must be served consecutively to any other prison term imposed. Both charges also carry a possible $250,000 maximum fine.  

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

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

This case is an example of coordination between law enforcement who are part of the Houston Law Enforcement Violent Crime Initiative which combines personnel and resources from numerous federal, state and local agencies. The goal is to proactively fight and reduce violent crime across the Greater Houston area by targeting the region’s most violent offenders, augmenting investigative and prosecutorial efforts and enhancing training, public awareness and education. It stems from the Project Safe Neighborhoods (PSN) Program. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them.

Assistant U.S. Attorney Joe Porto is prosecuting the case.

LAREDO, Texas – A 32-year-old U.S. citizen has pleaded guilty to smuggling goods from the United States, announced U.S. Attorney Alamdar S. Hamdani.

Jesus Alberto Olivarez admitted to attempting to export 5,680 rounds of assorted pistol ammunition.  

“All too often, the smuggling of illegal firearms and ammunition to Mexico is used to fuel a scourge of violence that threatens law enforcement and security officials, as well as the communities they serve,” said Deputy Attorney General Lisa O. Monaco. “To protect our law enforcement partners and the people of both our nations, the Justice Department will continue to use all of the tools at our disposal to stop those who would traffic illegal guns and ammunition to Mexico.”

“Olivarez was about to drive into Mexico with almost 6,000 rounds of live ammunition until the expertise and keen ear of a law enforcement officer thwarted his plan,” said Hamdani. “Stopping the illegal flow of firearms and ammunition into Mexico saves lives and will always be a priority of the Southern District of Texas and our local, state and federal law enforcement partners.”

On Feb. 27, Olivarez drove his black PT Cruiser to the Lincoln Juarez International Bridge on his way home to Nuevo Laredo, Tamaulipas, Mexico. Authorities noted one of the vehicle’s doors rattled as if something was hidden in it and seemed unusually heavy.

A subsequent search of all four of the Cruiser’s door panels yielded a total of 5,680 live rounds of pistol ammunition in assorted calibers - 3,600 rounds of .40 caliber S&W, 900 rounds of .380 caliber, 900 rounds of .45 caliber, 100 rounds of 9-millimeter and 180 rounds of .38 SPL +P ammunition.

Olivarez admitted he had agreed to smuggle the ammunition into Mexico and had just received the ammunition a few hours prior. He personally hid the ammunition throughout the vehicle’s door and rear panels.

U.S. District Judge Marina Garcia Marmolejo will impose sentencing Aug. 9. At that time, Olivarez faces up to 10 years in prison and a possible $250,000 maximum fine.

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

Homeland Security Investigations (HSI) assigned to the HSI-Laredo Border Enforcement Task Force, working in coordination with the Laredo Police Department’s Texas Anti-Gang Unit, conducted the investigation with the assistance of Customs and Border Protection. Assistant U.S. Attorney Homero Ramirez is prosecuting 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.

HOUSTON – A 30-year-old Houston man has been ordered to federal prison following his conviction of conspiracy to commit mail fraud in a scheme to defraud victims through a variety of internet scams, announced U.S. Attorney Alamdar S. Hamdani.

Ganiyu Abayomi Jimoh pleaded guilty Aug. 1, 2022.

Today, U.S. District Judge Andrew S. Hanen ordered Jimoh to serve 36 months in federal prison to be immediately followed by three years of supervised release. Jimoh was also ordered to pay $405,427.80 in restitution. At the hearing, the court heard additional evidence including that at least one of the victims was an 84-year-old man who was defrauded of money by an online “girlfriend” and how $13,500 of his losses were deposited into accounts Jimoh opened.

In 2019, Jimoh began working with co-conspirators pretending to be U.S. military soldiers deployed to Afghanistan. They would solicit victims wishing to assist soldiers stationed overseas and persuaded them to contribute monies toward non-existent real estate deals. 

As part of his plea, Jimoh admitted to using counterfeit passports to open bank accounts to receive funds from the victims for his personal benefit.

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

The U.S. Postal Inspection Service conducted the investigation. Assistant U.S. Attorney Jay Hileman prosecuted the case.

BROWNSVILLE, Texas – A 58-year-old resident of Hemet, California, has pleaded guilty to passing counterfeit U.S. savings bonds over three years, announced U.S. Attorney Alamdar S. Hamdani along with Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division.

Daniel Alan Lewis and others conspired to create counterfeit U.S. Series I savings bonds. They then passed them at financial institutions using other people’s identities and split the proceeds.

As part of his plea, Lewis further admitted that in November and December 2021, he passed numerous counterfeit savings bonds at banks in both the Houston and Brownsville areas.

U.S. District Judge Fernando Rodriguez Jr. accepted the plea and set sentencing for Aug. 10. At that time, Lewis faces up to 20 years in federal prison and a possible $250,000 maximum fine.

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

Homeland Security Investigations conducted the investigation with the assistance of the Secret Service, Department of the Treasury - Office of Inspector General and the Cameron County Sheriff’s Office. Assistant U.S. Attorney Edgardo J. Rodriguez is prosecuting the case along with Trial Attorney David D. Hamstra. 

HOUSTON – A 47-year-old man has been ordered to federal prison following his conviction of wire fraud, announced U.S. Attorney Alamdar S. Hamdani along with Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division.

Scott Jackson Davis pleaded guilty May 26, 2022.

Today, U.S. District Judge David Hittner sentenced Davis to a total of 102 months in federal prison to be immediately followed by three years of supervised release. The court also ordered him to pay restitution in the amount of $3,002,655.13.

At the hearing, the court heard evidence that at the time of the offense, Davis was on supervised release for another wire fraud conviction and had only been out of prison for just over four months when he began submitting the fraudulent Paycheck Protection Program (PPP) applications. As such, Judge Hittner noted Davis presented a danger to the community during the hearing.

In 2020, Davis fraudulently received $3.3 million in PPP funds through three fraudulent loan applications submitted to multiple financial institutions. Davis fabricated ownership of three businesses - Skilled Trade Investments LP, Skilled Trade Staffing LLC and Skilled Trade Investments Group - which he claimed staffed numerous employees and had significant payroll.

However, the businesses actually had few, if any, employees and little to no payroll if it existed at all. Davis used forged IRS documentation to corroborate the vastly inflated business expenses.

Davis also lied on each of the PPP applications, indicating he had never been convicted of a felony. In fact, he is a prior felon who was on supervised release for an unrelated 2017 wire fraud conviction.  

Davis spent a large portion of the fraudulently acquired PPP loan funds on private jet travel, real estate, jewelry, guns and luxury vehicles.

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

The FBI and Small Business Administration - Office of Inspector General  conducted the investigation. Assistant U.S. Attorney John Wakefield and Trial Attorney Edward Emokpae of the Criminal Division’s Fraud Section prosecuted the case.

CORPUS CHRISTI, Texas – A 23-year-old man residing in Corpus Christi has pleaded guilty to possession with intent to distribute 210 grams of meth, announced U.S. Attorney Alamdar S. Hamdani.

On Sept. 4, 2022, Jacob Soliz was a passenger in a sedan driving in Corpus Christi around 11:30 p.m. Authorities conducted a traffic stop after observing the vehicle was traveling without any headlights activated.

Law enforcement then observed the smell of burnt marijuana and ultimately conducted an inspection of the vehicle. At that time, they discovered multiple baggies of meth totaling 210 grams, baggies of marijuana totaling approximately 150 grams and a loaded AR-15 rifle. They also discovered approximately $2,500 located in Soliz’s pocket.

Soliz admitted the meth and rifle belonged to him.

U.S. District Judge Nelva Gonzales Ramos will impose sentencing Aug. 9. At that time, Soliz faces up to life in federal prison and a possible $10 million maximum fine.

Soliz was permitted to remain on bond pending sentencing.

Corpus Christi Police Department and the Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorney Tyler Foster is prosecuting the case.

LAREDO, Texas – A 48-year-old Splendora resident has been order to federal prison for transporting undocumented aliens, announced U.S. Attorney Alamdar S. Hamdani.

Denny Fuentes pleaded guilty Sept. 15, 2022.

Today, U.S. District Judge Diana Saldaña ordered Fuentes to serve 15 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the court heard the aliens, including five unaccompanied minors, were locked in the semi-trailer. In handing down the sentence, the court noted that Fuentes put everyone who was in the trailer in danger of harm.

On June 15, 2022, Fuentes drove a white semi-tractor pulling a white refrigerated utility trailer. He slowly approached the primary commercial lane at the Border Patrol (BP) checkpoint in Webb county, but authorities had to order him to stop.

At initial inspection, he displayed nervous behavior, and his lips were trembling. Fuentes told authorities he was “hauling pig meat.” He provided his passport and a manifest for products requiring transport at no higher than 45 degrees. However, the trailer temperature was set at 56 degrees.

Upon a secondary inspection, authorities discovered 71 undocumented aliens that included five minors.  

The temperature inside the enclosed metal trailer was almost 80 degrees while the outside temperature was approximately 100 degrees.

Fuentes was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility no earlier than September 8, 2023.

Homeland Security Investigations conducted the investigation with the assistance of BP. Assistant U.S. Attorney Homero Ramirez prosecuted the case.

McALLEN, Texas – A 35-year-old McAllen resident has been ordered to federal prison following his conviction for robbery of a motor vehicle with intent to cause serious harm or death, announced U.S. Attorney Alamdar S. Hamdani.

Fidel Garza Jr. pleaded guilty Feb. 15.

Today, U.S. District Judge Micaela Alvarez handed Garza a 85-month term of imprisonment to be immediately followed by three years of supervised release. At the hearing, the court heard additional evidence regarding Garza’s criminal history, including prior felony convictions for discharging a firearm in 2016 and being a felon in possession of a firearm in 2021.

On Nov. 25, 2021, Garza was on the 1200 block of 28th street riding in the passenger seat of a truck which pulled in front of an SUV and stopped. A 67-year-old man was driving that vehicle. Garza exited the passenger side of the truck and approached the SUV. He then pointed a handgun at the driver and demanded he and his three minor passengers get out of the vehicle. Fearing for their lives, they complied. Garza then entered the SUV and fled the scene. 

Law enforcement tracked him to a rural location in Edinburg. They arrested him in December 2021, at which time he admitted his role in the robbery.

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

The McAllen Police Department and Texas Department of Criminal Justice conducted the investigation with the assistance of the FBI and the Edinburg Police Department as part of the Rio Grande Valley Safe Streets Task Force. Assistant U.S. Attorneys Anthony J. Evans and James Sturgis prosecuted the case.

McALLEN, Texas – A 46-year-old man has been ordered to prison following his conviction of conspiracy to smuggle undocumented aliens, announced U.S. Attorney Alamdar S. Hamdani.

Medardo Cano pleaded guilty Feb. 15.

Today, U.S. District Judge Micaela Alvarez ordered Cano to serve 18 months in federal prison to be immediately followed by three years of supervised release.

In delivering the sentence, Judge Alvarez noted the seriousness of the offense and expressed her concerns that Cano had no way to verify the minors would be reunited with family had the smuggling attempt been successful.  

“Do not hire smugglers to transport your children,” said Hamdani. “You may never know where they took them or the degree of danger associated with the trip. Do not place your child’s life in the hands of criminals.”

On Dec. 7, 2022, Cano traveled with two minor children from Mexico to the United States. He encountered law enforcement at the Pharr Port of Entry and presented them with fraudulent Texas birth certificates on behalf of the minors. The investigation revealed the minor children were undocumented aliens.

Cano later admitted he had been hired to transport the children to the United States and knew the birth certificates were fraudulent.

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

Customs and Border Protection conducted the investigation. Assistant U.S. Attorney Matthew Phelps prosecuted the case.

HOUSTON – A 39-year-old man who holds citizenship in the United States and Ghana has pleaded guilty to operating an illegal money transmitting business, announced U.S. Attorney Alamdar S. Hamdani.

Kenneth Anim had resided in the Houston and Richmond areas.

He admitted that from 2014 to 2019, he operated an unlicensed money transmitting business to launder funds from wire fraud schemes including internet fraud and romance scams. Anim ran the unlicensed money transmitting business by using shell companies that existed only on paper.

As part of the plea, he acknowledged opening and maintaining bank accounts to collect proceeds from internet and romance fraud schemes to send the money to himself, co-conspirators and overseas.

A romance scam occurs when criminals adopt fake online identities to gain a victim’s affection and trust. The scammer then uses the illusion of a close relationship to induce the victim, under false pretenses, to send money to the scammer.

U.S. District Judge Ewing Werlein accepted the plea and set sentencing for July 21. At that time, Anim faces up to five years in federal prison and a possible $250,000 maximum fine.

Amin has been and will remain in custody pending sentencing. 

FBI conducted the investigation. Assistant U.S. Attorneys Belinda Beek and Grace Murphy are prosecuting the case.

HOUSTON – A 54-year-old Baytown woman has pleaded guilty to wire fraud, announced U.S. Attorney Alamdar S. Hamdani.

Judy M. Green admitted to embezzling over $3 million from her employer for approximately 10 years.   

Green worked as an account manager for a Houston-based building and maintenance supply company. As part of the scheme, she submitted fraudulent invoices to induce payment from the company and pocketed the funds for personal expenses. Ultimately, the scheme was uncovered when one of the business owners noticed a large payment to an unknown credit card company in the summer of 2022. An audit revealed the fraud had been ongoing since 2012.   

U.S. District Judge Alfred Bennett accepted the plea and set sentencing for Aug. 3. At that time, Green faces up to 20 years in federal prison as well as a possible $250,000 maximum fine.

Green was permitted to remain on bond pending sentencing.

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

CORPUS CHRISTI, Texas – A 39-year-old local man has been ordered to federal prison for attempting to possess with intent to distribute 6.8 kilograms of meth, announced U.S. Attorney Alamdar S. Hamdani.

Lawrence Hyde pleaded guilty Jan. 3.

Today, U.S. District Judge Drew Tipton ordered Hyde to serve 180 months in federal prison to be immediately followed by five years of supervised release. At sentencing, the court heard that this was not the first time Hyde had received narcotics through the mail.

On July 15, 2022, authorities intercepted a package containing 6.8 kilograms of meth addressed to a residence in Corpus Christi. They removed the drugs and subsequently delivered the package.

Law enforcement conducted surveillance of the residence and witnessed Hyde take the package and depart the location, at which time they arrested him.

Hyde ultimately admitted to knowing there were narcotics in the package and intended to deliver it to another individual. The total weight was approximately 6.8 kilograms of meth with an estimated street value of $200,000

Hyde 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 Drug Enforcement Administration conducted the investigation with the assistance of the United States Postal Service. Assistant U.S. Attorneys Patrick Overman and John Marck prosecuted the case.

GALVESTON, Texas – Three individuals have been sent to prison for their roles in bank robberies that occurred in Brazoria and Wharton, announced U.S. Attorney Alamdar S. Hamdani.

Tony Wayne Mitchell, 46, and Kevin McCoy, 33, both of Houston, and Mikell Phillips, 41, Dallas, all pleaded guilty between March 2022 and September 2022. Each admitted to conspiracy to commit bank robbery by force or violence. Mitchell also admitted to brandishing a firearm in relation to a crime of violence.

Today, U.S. District Jeffery V. Brown handed Mitchell a 60-month term of imprisonment, while McCoy and Phillips received 48 and 54 months, respectively, for the robbery conspiracy. Mitchell also received 84 months for the firearms conviction which must be served consecutively to the other sentence imposed. His total 144-months prison term will be immediately followed by five years of supervised release while the other two will be on supervised release for three years.

“While one of them held a gun, four men robbed banks in small, rural towns and terrorized the employees,” said Hamdani. “One of the robbers died while trying to flee, but the other three, with today’s sentence, will face the long arm of justice.”   

Mitchell, McCoy and Phillips were members of a four-man armed robbery crew who targeted bank branches situated in small rural towns surrounding Houston. Between 2018 and 2019, the crew robbed two banks in Brazoria and Wharton. During each crime, two or three men entered the banks brandishing firearms while wearing masks and hoodies. One man would vault the teller counter while they gathered the cash and put employees in offices, supply closets or the bank vault. They then exited the banks on foot.

A Crime Stoppers tip and prescription eyeglasses led authorities to the men.

Phillips was involved with only one robbery. He was the only person who did not enter the bank during the heist but did attempt to dispose of monies from the Wharton bank robbery. 

The fourth member of the crew died in a car crash during his attempt to flee from law enforcement.  

Mitchell, McCoy and Phillips have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

FBI Texas City conducted the investigation with the assistance of police departments in Brazoria and Wharton. Assistant U.S. Attorney Kenneth Cusick prosecuted the case.

BROWNSVILLE, TEXAS – A 28-year-old San Benito resident has been ordered to federal prison after being convicted of possession with intent to distribute cocaine and conspiracy to do so, announced U.S. Attorney Alamdar S. Hamdani.

A federal jury convicted Baltazar Reyes-Herrera Jan. 20, following a two-day-trial and approximately seven hours of deliberation.

Today, U.S. District Judge Fernando Rodriguez Jr. ordered Reyes-Herrera to serve 100 months in federal prison to be immediately followed by four years of supervised release. At the hearing, the court heard additional evidence that Reyes-Herrera was taking 18 bundles of cocaine to Mississippi for payment of $10,000 and bringing the currency back for the sale of the 19.52 kilograms of cocaine. In handing down the sentence, the court noted the amount of cocaine and the harm it brings to individuals in the United States.

On Oct. 19, 2020, Reyes-Herrera arrived at the Sarita checkpoint close to midnight driving a tractor trailer. He told authorities he was driving to Houston to pick up a truck from an auction. Following a K-9 alert, law enforcement crawled underneath the tractor and observed handprints on the bolts that hold the rear differential in place. Reyes-Herrera denied knowledge of the 18 bundles of cocaine concealed in the hollow differential. 

The estimated street value of the drugs is $500,000.

According to evidenced present at trial, Reyes-Herrera purchased truck insurance two hours prior to arriving at the checkpoint. He did not have valid travel logs for the trip and did not possess a valid commercial license.

Reyes-Herrera will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in

McALLEN, Texas – A 21-year-old Pharr resident has pleaded guilty to smuggling goods from the United States, announced U.S. Attorney Alamdar S. Hamdani.

Pedro Cruz Almeida Jr. admitted to attempting to export .50 caliber tracer-equipped linked ammunition without a license to export.

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

U.S. District Judge Micaela Alvarez accepted the plea and set sentencing for July 27. At that time, Almeida faces up to 10 years in federal prison.

Almeida was permitted to remain on bond pending sentencing

Homeland Security Investigations conducted the investigation with the assistance of the Hidalgo County Constable’s Office. Assistant U.S. Attorney Peter I. Brostowin is prosecuting 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.

HOUSTON ‐ A 24-year-old Pasadena man has been sent to federal prison following his conviction of firearm and drug trafficking offenses related to his role in the shooting of a Houston Police Department (HPD) officer, announced U.S. Alamdar S. Hamdani.   

Jimmy Caston Bryan pleaded guilty Oct. 13, 2022, to possessing with intent to distribute meth and to carrying and discharging a firearm during and in relation to a drug trafficking crime.

Today, Chief U.S. District Judge Lee H. Rosenthal handed Bryan a 100-month term of imprisonment for drug trafficking meth. He also received 120 months for the firearms charge which must be served consecutively to the other sentence imposed. The total 220-month prison term will be immediately followed by five years of supervised release. In handing down the sentence, the court noted Bryan’s lengthy criminal history and the violent nature of the offense.

“Almost a year ago, Bryan, a known drug trafficker, shot an HPD officer during a traffic stop,” said Hamdani. “That cruel act carries severe consequences, especially in the federal system, and today’s 220-month prison sentence reflects those consequences.” 

At the time of his plea, Bryan admitted that on May 4, 2022, he fired multiple shots at an HPD officer near 14300 Gulf Freeway.

Bryan previously trafficked narcotics in the Houston area, had possessed meth and was believed to be in the possession of multiple firearms. On May 4, 2022, authorities conducted a traffic stop, at which time two HPD officers approached Bryan’s truck and requested identifying information.

Bryan did not comply which led law enforcement to ask him to step out of the vehicle. As one officer opened Bryan’s door, Bryan quickly reached into his waistband and pulled out a semi-automatic handgun.

At the time of his plea, Bryan also admitted he shot and struck the other HPD officer twice - once in the chest and once in the right hip.

Both officers returned gunfire and struck Bryan.

A search of Bryan’s vehicle revealed over 48 grams of meth, heroin, cocaine, ecstasy, a digital scale and two additional handguns.   

Bryan 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 Drug Enforcement Administration, HPD, Texas Department of Public Safety and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney Michael Day prosecuted the case.

McALLEN, Texas – Two Mission men have pleaded guilty for their roles in a cocaine trafficking conspiracy, announced U.S. Attorney Alamdar S. Hamdani.

In October 2022, Eddie Perez, 29, was supposed to deliver narcotics to another individual on behalf of his friend Juan Alberto Mendez Jr., 28.

Authorities were conducting surveillance at a Best Buy parking lot in McAllen They saw vehicles approach, after which Perez removed bags containing bricks of cocaine from the trunk of his vehicle.

Mendez was parked in another vehicle observing the transaction.

Law enforcement approached and arrested Perez and Mendez immediately.  They seized a total of 20 kilograms of cocaine.

Both admitted to conspiracy to possess with intent to distribute 20 kilograms of cocaine.

U.S. District Judge Marina Garcia Marmolejo accepted the pleas and set sentencing for July 24. At that time, both face a minimum of 1o years and up to life in prison as well as a possible $10 million maximum fine.

Mendez was permitted to remain on bond pending sentencing and Perez has been and will remain in custody pending sentencing.

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

McALLEN, Texas – A 39-year-old Edinburg woman has pleaded guilty to importing 24 kilograms of crystal meth into the United States from Mexico, announced U.S. Attorney Alamdar S. Hamdani.

On April 17, 2022, Nelly Guerra attempted to make entry into the United States through the Donna Port of Entry. During inspection, authorities discovered 15 packages concealed within the side panels of the vehicle.

The investigation revealed the substance was meth with a purity level of 90%.

U.S. District Judge Hinojosa will impose sentencing July 26. At that time, Guerra faces a mandatory minimum of 10 years and up to life in federal prison.

She has been and will remain in custody pending sentencing.   

Homeland Security Investigations conducted the investigation with the assistance of the Drug Enforcement Administration and Customs and Border Protection. Assistant U.S. Attorney Devin V. Walker is prosecuting the case.

LAREDO, Texas – A total of seven local residents have been convicted of conspiring to conduct illegal gambling in Webb and Zapata counties, announced U.S. Attorney Alamdar S. Hamdani.

Hilda Diana Guerra-Villarrea, 74, Raul Rene Villarreal, 51, and Alma Urania Garcia, 33, all of Zapata, pleaded guilty today to conspiring to conduct and conducting illegal gambling at locations in Webb and Zapata counties.

Four others - Rodolfo Ricardo Villarreal Jr., 37, Juan Vasco, 52, and Ruben Samuel Villarreal, 28, all from Zapata and Maria Mendieta, 42, Bruni - entered their pleas to the same charges in 2022.

The investigation revealed a complex conspiracy which began in 2019. As part of the scheme, various members of the Villarreal family conspired to operate a family-run illegal gambling business at multiple establishments in Webb and Zapata Counties near the city of Laredo. This included the Lucky Spins (Red Barn) in Bruni, Desert Diamond in Falcon and Golden Amusement in Zapata.

Members of the family and their close associates owned and operated the establishments and illegally made cash payouts to customers.

As part of her plea today, Guerra-Villarreal agreed to the forfeiture of an estimated $2.6 million in the form of land, buildings and gambling machines.

U.S. District Judge Diana Saldana will impose sentencing for all at a later date. At those hearings, each faces up to five years in prison and a possible $250,000 fine.

All seven have been permitted to remain on bond pending that hearing.

Homeland Security Investigations investigated the case with assistance from the Laredo Police Department, Texas Department of Public Safety and Webb County District Attorney’s Office.

Assistant U.S. Attorney Francisco J. Rodriguez, Mary Ellen Smyth, Gerard Cantu and Matthew Isaac are prosecuting the case.

McALLEN, Texas – A 50-year-old Alton resident has admitted he aided and abetted another man to bring meth into the country, announced U.S. Attorney Alamdar S. Hamdani.

On April 22, 2021, Argelio Chavero drove a Chevrolet Trailblazer into Mexico from the United States with Agustin Romero Jr. in the passenger seat.

They returned two days later. Chavero entered the country through the Hidalgo port of entry pedestrian lane. At the same time, Chavero was driving the Trailblazer which was loaded with narcotics.  

Upon entry, authorities referred him and the vehicle to secondary inspection where they discovered anomalies in the fuel tank area. A physical search resulted in the seizure of 33 packages of meth and marijuana.

The weight of the meth was approximately 12 kilograms and had an estimated street value of approximately $70,000.

Further investigation led to the identification of Chavero.

Romero, 40, a U.S. citizen residing in Reynosa, Tamaulipas, Mexico, previously pleaded guilty for his role. At that time, he admitted he received payment from Chavero to drive the vehicle.

U.S. District Judge Marina G. Marmolejo accepted the plea today. U.S. District Judge Ricardo H. Hinojosa will impose sentencing for Romero and Chavero May 25 and July 26, respectively. At that time, Romero and Chavero both face a mandatory minimum of 10 years and up to life in prison and a possible $250,000 maximum fine.

Both have been and will remain in custody pending that hearing.

Homeland Security Investigations conducted the investigation with the assistance of Customs and Border Protection. Assistant U.S. Attorneys Colton Turner and Eliza Rodriguez are prosecuting the case.

McALLEN, Texas – A 34-year-old local man has been convicted of drug trafficking after trying to escape drug house through an attic vent, announced U.S. Attorney Alamdar S. Hamdani.

Adan Ontiveros Jr. pleaded guilty to conspiring to possess with the intent to distribute nearly 2,500 kilograms of marijuana.

On July 16, 2020, law enforcement was conducting surveillance at a suspected drug house in Roma. There, they saw a man - Ontiveros - attempting to discretely exit the residence. He was trying to escape via an attic vent. However, authorities quickly took him into custody.  

They obtained a search warrant and ultimately discovered several hundred bundles of marijuana. The total weight was 2,477 kilograms with an approximate value of more than $33 million.

He admitted he was aware there was marijuana inside the stash house.

U.S. District Judge Richardo Hinojosa will impose sentencing July 27. At that time, Ontiveros faces up to life in prison as well as a maximum $10 million possible fine.

The Texas Department of Public Safety and the Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorneys Matthew Phelps and Roberto Lopez Jr. are prosecuting the case.

HOUSTON – A 61-year-old doctor and a compounding pharmacy he operates paid the United States $7,963,246 to resolve claims they improperly billed the Department of Labor, Office of Workers’ Compensation Program (DOL-OWCP), announced U.S. Attorney Alamdar S. Hamdani.

Dr. Ajay Kumar Aggarwal and Medley Compounding Pharmacy LLC knowingly and willfully submitted, or caused the submission of, false claims to DOL-OWCP. The claims for payment were for compounding creams, gels and pain patches that were neither medically necessary nor medically beneficial to the patients. The investigation revealed DOL-OWCP beneficiaries were receiving excessive and unnecessary medication through the U.S. mail. 

“It is particularly egregious when providers who participate in federally funded programs like OWCP violate their responsibility to the public to provide legitimate, necessary and safe treatment,” said Hamdani. “We are not going to stand by when such people take advantage of federal employee health insurance programs and dispense unnecessary medications and services to the federal workforce. The significant penalty announced today is an example of that effort.”

Aggarwal owned and operated A.A. Texas Anesthesiology Back Pain Center where he allegedly wrote and issued prescriptions for compound pain medications to injured federal employees with federal worker’s compensation benefits. Medley filled the prescriptions.

Aggarwal’s wife owned Medley on paper. Medley began billing DOL in 2013, a year after it opened.

The investigation began when an individual employed at Medley filed a qui tam aka whistleblower lawsuit under seal Oct. 10, 2017. During his term of employment, the whistleblower allegedly witnessed patients being sent unnecessary, unwanted medications through the United States mail despite the fact they did not need and could not benefit from the medications. In a few instances, patients did not see, or ever meet, Aggarwal. Medley employees were allegedly instructed to auto-fill medications on a monthly basis and to use pre-printed prescription pads to submit the prescriptions to DOL-OWCP without consideration of medical need. 

“This settlement is a testament to the dedication and determination of the investigative and legal teams,” said Special Agent in Charge Jonathan Ulrich, U.S. Postal Service - Office of Inspector General (USPS-OIG). “USPS-OIG, along with our law enforcement partners, will continue to vigorously investigate these types of cases in order to root out fraud, waste and abuse.”

“Protecting the integrity of the programs administered by OWCP is an important part of the mission of DOL-OIG. We will continue to work with OWCP and the Department of Justice to vigorously pursue allegations of fraud involving these programs,” said Special Agent-in-Charge Steven Grell, Central Region, DOL-OIG.

Under the False Claims Act, a private party known as a relator can file an action on behalf of the United States and receive a portion of the recovery. In this case, the relator will receive a total of $1,353,752.

DOL-OIG and USPS-OIG conducted the investigation. Assistant U.S. Attorney Jill O. Venezia handled the matter.

CORPUS CHRISTI, Texas – A 57-year-old man has pleaded guilty to possession with intent to distribute more than 180 grams of meth, announced U.S. Attorney Alamdar S. Hamdani.

On March 17, authorities encountered Sean Graham at a local restaurant. There, he appeared nervous and soon admitted he had meth in his truck. They searched his truck and found several bags containing approximately 80 grams of meth of the drug in the truck.

Law enforcement then obtained a search warrant for his residence where they found an additional 100 grams of meth. Some was located inside an Airwick air freshener.

The total weight was approximately 180.4 grams.

U.S. District Judge Drew Tipton will impose sentencing July 24. At that time, Graham faces up to life in prison and a possible $10 million maximum fine.

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

Homeland Security Investigations conducted the investigation with the assistance of the Drug Enforcement Administration and the Corpus Christi Police Department. Assistant U.S. Attorney Patrick Overman is prosecuting the case.

McALLEN, Texas – A 52-year-old Edinburg man has entered a guilty plea to federal program bribery, announced U.S. Attorney Alamdar S. Hamdani.

Miguel A. Garza admitted his involvement in a scheme to help funnel bribe money from a McAllen-area business owner to certain officials with the City of Edinburg. In exchange, they were to award a city contract to the businessman.

“Funneling bribes damages the foundations of city governments, such as Edinburg,” said Hamdani. “Our office will be relentless in seeking justice against actors who threaten to crumble those foundations through their criminal acts.” 

During the plea today, Garza admitted that during 2019 and 2020, he was acting as a political consultant on behalf of two elected officials in Edinburg. He told a local business owner he could secure votes from the officials relating to contracts the city maintained in exchange for bribe payments to the officials. 

He then collected a series of payments intending to provide them to the city officials in exchange for their votes.

As part of the plea today, Garza admitted to the political payments which totaled $47,235 between approximately June 1, 2019, and March 1, 2020.

U.S. District Judge Ricardo H. Hinojosa will impose sentence July 31. At that time, Garza faces up to 10 years in prison and a possible $250,000 maximum fine.

He was permitted to remain on bond pending that hearing.

The FBI conducted the investigation. Assistant U.S. Attorneys Robert L. Guerra Jr. and Arthur R. Jones are prosecuting the case.

HOUSTON – E. I. du Pont de Nemours and Company Inc. (DuPont) pleaded guilty and has been sentenced for criminal negligence in connection with a 2014 accident that left four company employees dead, announced U.S. Attorney Alamdar S. Hamdani.

On Nov. 15, 2014, DuPont released approximately 24,000 pounds of a highly toxic, flammable gas called methyl mercaptan (MeSH) into the air. In addition to killing the four, the chemical release injured other DuPont employees and travelled downwind into the surrounding areas.

The company pleaded guilty today along with Kenneth Sandel, 52, Friendswood, unit operations leader of the Insecticide Business Unit (IBU) where the accident occurred.

U.S. District Judge Lee H. Rosenthal ordered DuPont to pay a $12 million penalty. The company must also serve two years of probation during which time the company must give the U.S. Probation Office full access to all of its operating locations. Judge Rosenthal also ordered Sandel to serve one year of probation. At the hearing, the court asked DuPont’s corporate representative whether the company had to publicly disclose their conviction, noting the importance of that fact.

They will also make a $4 million community service payment to the National Fish and Wildlife Foundation to address the harm they caused by funding  projects that benefit air quality in and around areas adjacent to the western shores of Galveston Bay.

As a result of this case and other related civil cases tied to the explosion, DuPont will have paid a total of $19.26 million for its unlawful conduct.

“Four employees are dead because of DuPont’s criminal negligence,” said Hamdani. “The sentence imposed today sends a clear message of my office’s dedication to holding managers at industrial facilities, and the corporations that own and operate those facilities, accountable for violations of federal criminal laws; laws meant to protect the safety of workers and nearby communities.”

“The failure to follow required chemical safety procedures at Dupont’s La Porte facility resulted in the deaths of four employees,” said Acting Assistant Administrator Larry Starfield for the Environmental Protection Agency’s (EPA) Office of Enforcement and Compliance Assurance. “This case demonstrates the importance of holding chemical facilities accountable for implementing chemical safety requirements that are designed to protect workers and neighboring communities.”

DuPont is headquartered in Wilmington, Delaware, and owns chemical manufacturing plants around the world including a facility in La Porte. As part of its operations, the facility produces pesticides called Lannate and Vydate among other products.

The release of the MeSH on Nov. 15, 2014, resulted in the introduction of the pesticides into the air which travelled downwind into the city of Deer Park and beyond. In addition to killing the four employees, several others were injured.

The fatal accident occurred after an employee inadvertently left open a piping valve which caused a slushy material to block the flow of liquid MeSH into the Lannate process. To melt it, DuPont day shift employees began applying hot water to the outside of the blocked piping and opened other valves to vent MeSH gas into a waste gas system. However, the MeSH piping was still blocked at the end of the day.

As the IBU leader, Sandel was responsible for ensuring shift supervisors, operators and engineers understood and complied with government safety, health and environmental regulations. Specifically, Sandel was responsible for implementing a safety procedure at the IBU by making sure employees understood and followed the procedure’s requirements and did not release toxic chemicals inappropriately to the environment.

Sandel and other employees failed to provide sufficient instructions to the oncoming shift for how to safely clear remaining blockage. It finally cleared early the next morning, and a large volume of liquid MeSH began flowing into the waste gas system. At that time, an employee mistakenly believed the waste gas system only contained materials present during normal operations and opened valves that resulted in the release of the toxic gas. 

Records indicate employees at DuPont’s LaPorte plant disregarded a federally mandated safety procedure when opening those valves on the waste system. Sandel should have known operators did not have a safe and effective way to drain the vent system and should have prevented it from happening. 

As part of the pleas, DuPont and Sandel admitted to negligently releasing an extremely hazardous substance into the ambient air. The company also acknowledged negligently placing a person in imminent danger of death or serious bodily injury in violation of the federal Clean Air Act.

The IBU has since been demolished.

The charges against DuPont and Sandel are part of an EPA initiative titled Reducing Risks of Accidental Releases at Industrial and Chemical Facilities. EPA’s Criminal Investigation Division in Texas conducted the investigation with assistance from the Texas Environmental Enforcement Task Force and Texas Commission on Environmental Quality. 

Assistant U.S. Attorneys (AUSA) John R. Lewis and Belinda Beek and Special AUSA Kristina Gonzales are prosecuting the case with assistance from the Justice Department’s Environmental Crimes Section of the Environment and Natural Resources Division.

McALLEN, Texas – A 61-year-old Harlingen resident, and former Southwest Key employee, has been charged with multiple counts of sexual contact with a ward, announced U.S. Attorney Alamdar S. Hamdani.

Authorities arrested Rodolfo Alanis today. He is expected to make his initial appearance before U.S. Magistrate Judge J. Scott Hacker tomorrow at 9 a.m.

A federal grand jury returned the three-count indictment April 18, which was unsealed upon his arrest.

“The migrant children in these facilities are the most vulnerable; they are alone and often do not speak the language,” said Hamdani. “We have to entrust them to the care of others while there and as they are transported from point A to point B. As such, my office will seek to hold those accountable who allegedly violate that trust. These allegations are serious and we will follow the case to its end to ensure justice is served overall, but especially on behalf of any potential young victim.”

According to the charges, Alanis was a youth care worker at Southwest Key in both McAllen and Brownsville. Southwest Key operates several facilities that temporarily house immigrant children. They have facilities in McAllen and Brownsville. 

Alanis allegedly engaged in sexual contact with three minor children who, at the time, were detained and under the custody and authority of Alanis. The indictment further alleges the sexual contact occurred on three separate occasions while on board an airplane.

If convicted, Alanis faces up to two years imprisonment on each count.

FBI and Department of Health and Human Services - Office of Inspector General and Immigration and Customs Enforcement conducted the investigation with the assistance of Department of Homeland Security-Office of Inspector General. Assistant U.S. Attorney Laura Garcia and Alexa Parcell 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 Texas company operating in Harris County has been ordered to pay a significant penalty after admitting they failed to comply with regulations regarding proper screening of cargo through Bush International Airport (IAH), announced U.S. Attorney Alamdar S. Hamdani.

Air Cargo Screening & Solutions LLC (ACSS) pleaded guilty June 7, 2022, admitting they made material false statements in relation to the proper screening of air cargo for explosives on commercial flights.

Today. U.S. District Judge Charles D. Eskridge ordered them to pay a $415,508.16 fine which included the profits for the screenings they did not conduct. The company will also be on probation for five years. At the hearing, the court noted these screening procedures were put in place after 9-11 to provide for the safety and security of passengers and air cargo and that ACSS had violated this trust.

“Checking packages for explosives, packages destined for aircraft carrying passengers, is vital to saving lives and protecting the national security,” said Hamdani. “Whether through significant fines or federal prison time, we will pursue those charged with such security who knowingly shirk that duty. Put simply, companies must answer for potentially putting lives and the nation at risk.”

The Aviation and Transpiration Security Act, passed two months after the Sept. 11, 2001, attacks, mandates the screening for explosives on cargo transported on passenger aircraft. To meet these requirements, Transportation Security Administration (TSA) established guidelines to certify facilities in the United States that screen cargo prior to tendering it to passenger aircraft.

Pursuant to this program, ACSS screened air cargo for domestic and foreign air carriers that traveled through IAH. However, a comparison of records from explosive trace detection machines and forms ACSS employees completed showed that ACSS falsified records, claiming they had screened 100 percent of the cargo passing through their facility when, in truth, they had not.

TSA conducted the investigation. Assistant U.S. Attorney Steven Schammel prosecuted the case.

BROWNSVILLE, Texas – A 21-year-old non-U.S. citizen illegally residing in Harlingen has been ordered to prison following his conviction for attempting to traffic fentanyl and meth, announced U.S. Attorney Alamdar S. Hamdani.

Jorge Mario Vazquez-Zuniga pleaded guilty Dec. 1, 2022.

Today, U.S. District Judge Rolando Olvera ordered Vazquez-Zuniga to serve 84 months in federal prison. Not a U.S. citizen, he is expected to face removal proceedings following his imprisonment.

On June 14, 2022, law enforcement stopped Vazquez-Zuniga for following too closely to another vehicle. After a K-9 alerted to the odor of narcotics, authorities searched the vehicle and discovered approximately 10.50 kilograms of meth hidden inside an ice chest.

Vazquez-Zuniga ultimately admitted knowing narcotics were inside his vehicle and agreeing to transport them to another person for financial gain. The investigation led to his residence where law enforcement also located approximately 8.08 kilograms of fentanyl.

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

The Drug Enforcement Administration conducted the investigation with the assistance of Homeland Security Investigations and the Texas Department of Public Safety. Assistant U.S. Attorney Edgardo J. Rodriguez prosecuted the case.

HOUSTON – A Florida man and Texas woman have been ordered to prison following their conviction of wire fraud during the COVID-19 pandemic, announced U.S. Attorney Alamdar S. Hamdani.

Dylan Kinlock, 30, Orlando, Florida, and Felicia Garza, 37, Houston, pleaded guilty in January to conspiracy to commit wire fraud in connection with a scheme to defraud the United States of COVID-related disaster loan proceeds.

Today, U.S. District Judge David Hittner ordered Kinlock to serve 56 months in federal prison, while Garza received 24-month-term of imprisonment. Both must also serve three years of supervised release following completion of prison terms. Additionally, the Court ordered Dylan Kinlock to forfeit to the United States $312,573.05 in funds found in a bank account as well as his home in Orlando. Kinlock was also ordered to pay restitution to the United States in the amount of $939,379, offset by the amount recovered by the forfeiture. 

Kinlock and Garza admitted they devised a scheme to solicit others to fraudulently apply for Paycheck Protection Program (PPP) loans the Coronavirus Aid, Relief and Economic Security (CARES) Act provided. The two utilized victims’ personal information to create falsified documents and applied for a PPP loan on their behalf.

The fraud scheme resulted in at least 241 fraudulent PPP loans which led to the distribution of more than $1 million. Kinlock received at least $939,379 in fee income from individuals he assisted in securing the fraudulent PPP Loans.   Garza was paid by Kinlock to refer PPP clients to him.  She also helped Kinlock file a fraudulent PPP loan application on her own behalf.

Numerous individuals residing in the Southern District of Texas applied for PPP loans through Kinlock. They were referred to Kinlock by Garza and they all reported that Kinlock attached fraudulent documents to their application without their knowledge, and the applications contained false statements about the number of employees their business had. 

The false documents included fictitious Schedule C tax forms reporting profit or loss from a business, 1099-MISC forms and invoices reporting incorrect income to qualify for the loans. Kinlock and Garza solicited each victim to execute a contract in which they agreed to share a portion of their PPP loans.

After clients received their PPP loan funds, Kinlock  directed the client to send fees through various means including direct deposit into a bank account or electronic payment methods such as Zelle, CashApp or Venmo. Fees ranged from $3000 to $4,000 per loan or 20% of the amount the client received.

Both used the monies for their personal benefit. Notably, Kinlock used some of the funds to pay off his home in Florida. As part of his plea, he also agreed to forfeit that residence.

The CARES Act is a federal law enacted March 27, 2020, to provide emergency financial assistance to the millions of Americans who suffered the economic effects caused by the COVID-19 pandemic.

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

Garza 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. Assistant U.S. Attorney Jay Hileman prosecuted the case.

McALLEN, Texas – A 59-year-old legal permanent resident of Mission has been ordered to remain in custody for his role in attempting to smuggle an undocumented alien, announced U.S. Attorney Alamdar S. Hamdani.

Ernesto Gaona-Gonzalez appeared before U.S. Magistrate Judge Nadia S. Medrano who found him to be a danger to the community and a flight risk and ordered him to remain in custody pending further criminal proceedings.

A federal grand jury retuned the indictment April 5, which was unsealed upon his arrest April 12.

Gaona allegedly attempted to transport an alien by motor vehicle through Mission.

Gaona was employed as a security guard for the purpose of checking vehicles entering Anzalduas Park in Mission.

At the hearing today, the court heard that on Sept. 4, 2022, a female undocumented non-citizen was allegedly being held against her will. Gaona allegedly had the victim in his vehicle and contacted a friend for money in exchange for releasing her.

If convicted, Gaona faces up to five years in prison and a maximum $250,000 fine.

Homeland Security Investigations conducted the investigation with the assistance of Border Patrol and the Federal Air Marshal Service. Assistant U.S. Attorney Jongwoo Chung 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.

McALLEN, Texas – Two brothers residing in La Villa have been ordered to federal prison following their convictions of possession with intent to distribute meth, announced U.S. Attorney Alamdar S. Hamdani.

Roberto Serna pleaded guilty Feb. 3, while his brother Artemio entered his plea Nov. 30, 2022.

Today, Chief U.S. District Judge Randy Crane ordered Roberto to serve 120 months in federal prison to be immediately followed by five years of supervised release.

Artemio was previously ordered to serve the same sentence.

On Sept. 26, 2022, the Sernas sold a kilogram of meth undercover authorities.  

At the time of their plea, the brothers admitted to selling the drugs on two separate occasions.

The FBI conducted the investigation. Assistant U.S. Attorney Robert L. Guerra Jr. prosecuted the case.

HOUSTON – Executives and leaders of the Texas Medical Center (TMC) have learned about the dangers of cyberattacks by malicious actors like China, Russia and transnational criminals and how to tackle those attacks, announced U.S. Attorney Alamdar S. Hamdani.

The U.S. Attorney’s Office (USAO) along with FBI, Homeland Security Investigations, Cybersecurity and Infrastructure Security Agency and the Food and Drug Administration provided the training which included essential tools and protocols for TMC attendees to follow if their facilities are subject to cyber intrusions.   

Methodist Hospital hosted the training event with attendees from Memorial Herman Hospital, Texas Children’s Hospital, MD Anderson, Baylor College of Medicine and the University of Texas Health System. 

Criminal organizations and nation state actors like China, Russia and Iran as well as other bad actors have become more sophisticated in their ability to launch cyber-attacks against critical infrastructure such as the health care facilities in the TMC. 

“It is essential to national security and crucial to the safety of patients for federal law enforcement to work closely with the health care sector to develop resilient and adaptive defenses against malicious cyberspace activity and network intrusions,” said Hamdani. “The USAO will continue to seek opportunities to enhance collaboration with our law enforcement partners and the health care industry to prevent potential network intrusions and ensure greater unity of effort in response to cyber incidents.”

On a weekly basis, hundreds of cyberattacks occur on businesses all across the Southern District of Texas. There must be a quick response team in place to immediately address the intrusion in order to circumvent major damage and losses. The USAO routinely works with other prosecutors and law enforcement in the district to stay ahead of potential cyber threats. 

As the global economy enters another year of Russia’s invasion of Ukraine, and China continues to seek to disrupt critical industries like the health care sector, the private industry must be reminded to be diligent about their networks and to know their response plans, have a paper copy available and review their cyber-related insurance policies.

The USAO has established contact lines for assistance 24 hours a day. If you have fallen victim to an intrusion, inadvertently diverted funds to an unknown third-party or suffered a ransomware attack, please email directly or call the hotline at 713-542-5213.  

Nine defendants – including three compounding pharmacy owners, a physician, two pharmacists, and three patient recruiters – were sentenced yesterday for their respective roles in a years-long, multi-state scheme to defraud the Department of Labor’s Office of Workers’ Compensation Programs (OWCP) and TRICARE, the health care program for U.S. service members and their families.

The sentences include:

• John Cruise, 52, of Houston, a former co-owner of Assurance Consolidated Pharmacy (ACP), a pharmacy located in Spring, Texas, as well as an owner of the Injured Federal Workers Advocate Association (IFWAA), an organization that purported to assist injured federal workers, was sentenced to 20 years in prison.
• LaShonia Johnson, 50, of Houston, a former co-owner of ACP with her husband and co-defendant Cruise, and director at IFWAA, was sentenced to 15 years in prison.
• Kenny Ozoude, 48, of Houston, former owner of Compounding Solutions LLC, a Houston-based pharmacy, was sentenced to 10 years in prison.
• James Don Jackson, 63, of Tyler, Texas, a medical doctor licensed in Texas, was sentenced to five years in prison.
• Nirvana Hightower, 56, of Houston, a pharmacist licensed in Texas and pharmacist-in-charge at Compounding Solutions LLC, was sentenced to five years in prison.
• Keith Hudson, 55, of Humble, Texas, a pharmacist licensed in Texas and pharmacist-in-charge at ACP, was sentenced to 3 years in prison.
• Audra Jones, 46, of Houston, was sentenced to two years and six months in prison.
• Terrance Aice, 50, of Carrollton, Texas, a patient recruiter, was sentenced to one year and six months in prison.
• Sherod Johnson, 44, of Las Vegas, a patient recruiter, was sentenced to one year and six months in prison.

The defendants submitted false and fraudulent claims to the OWCP and TRICARE for prescriptions for compounded and other drugs prescribed to injured federal workers and members of the armed forces. The defendants also paid kickbacks to patient recruiters and physicians to prescribe these drugs. The defendants chose the particular compounds and other drugs based not on the patients’ medical needs but in light of the amount of reimbursement for the drugs. The drugs were then mailed to patients, even though the patients often never requested, wanted, or needed them. 

Four additional defendants (Dr. Jay Bender, Dr. Deepak Chavda, Donathan Kemp, and Naresh Jivanji) are scheduled to be sentenced on May 25.

Assistant Attorney General Kenneth A. Polite, Jr. 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), Special Agent in Charge Steve Grell of the Department of Labor Office of Inspector General (DOL-OIG), Special Agent in Charge Michael Mentavlos of the Department of Defense Office of Inspector General (DOD-OIG), and Special Agent in Charge Kris Raper of the Department of Veteran’s Affairs Office of Inspector General (DVAO-OIG) South Central Field Office made the announcement.

The USPS-OIG, DOD-OIG, and DOL-OIG investigated the case with assistance from the DVAO-OIG.

Trial Attorneys Catherine Wagner and Patrick J. Queenan of the Criminal Division’s Fraud Section prosecuted the case. Assistant Chief Scott Armstrong, Assistant Chief John “Fritz” Scanlon, Trial Attorney Michael McCarthy, and former Trial Attorneys Jay McCormack and Sarah Edwards of the Fraud Section previously prosecuted the case.

McALLEN, Texas ‐ An owner of a Rio Grande Valley area home health company has been ordered to prison for his conviction of conspiracy to commit health care fraud, announced U.S. Attorney Alamdar S. Hamdani. 

Miguel Angel Contreras, 44, McAllen, pleaded guilty April 14, 2016.

Today, U.S. District Judge Micaela Alvarez ordered Contreras to serve a 45-month sentence to be immediately followed by one year of supervised release. Contreras was also ordered to pay $1,037,353.78 in restitution. In handing down the sentence, Judge Alvarez noted the lengthy duration of the fraud and the multiple ways in which the fraud was committed.

Contreras was an owner and administrator for Sambritt Home Health LLC. As part of his plea, he admitted he submitted false and fraudulent claims to Medicare for reimbursement of home health services that were not provided, that a physician had not authorized and/or were not medically necessary.

The false and fraudulent claims Contreras submitted to Medicare totaled $724,056.02. As a result of the false and fraudulent claims, Medicare paid approximately $1,037,353.78.

Contreras further admitted he paid illegal kickbacks in exchange for patient information, including patient Medicare numbers. He and/or his co-conspirators would then use the fraudulently obtained Medicare numbers to submit claims to Medicare in order to receive reimbursements.     

As part of his plea, Contreras admitted he forged and/or caused others to forge the signatures of physicians on the referral forms or 485 forms, knowing the physicians did not authorize the need for home health services and/or that the beneficiaries did not need or qualify for home health services. Contreras directed employees to create “ghost notes” for patient files which were intended and calculated to make the fraudulent claims submitted to Medicare appear legitimate. Contreras also admitted he directed employees and/or co-conspirators to bill Medicare for home health services with 485 forms which were missing physician signatures.    

Contreras 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 Department of Health and Human Services‐Office of Inspector General, the FBI, and the Texas Health and Human Services Commission-Office of Inspector General conducted the investigation. Assistant U.S. Attorney Michael Day is prosecuting the case.

McALLEN, Texas – A 35-year-old U.S. citizen residing in Monterrey, Mexico, has been ordered to federal prison following his conviction of smuggling two kilograms of cocaine and six kilograms of meth, announced U.S. Attorney Alamdar S. Hamdani.

A federal jury deliberated for approximately 45 minutes before convicting, Nestor Alan Garcia before returning a guilty verdict Sept. 22, 2022, on all six counts as charged following a four-day trial.

Today, U.S. District Judge Randy Crane ordered Garcia to serve 144 months in federal prison to be immediately followed by five years of supervised release. At the hearing, the court heard arguments on whether Garcia had a larger role in the conspiracy beyond his participation as a transporter. The court heard that Garcia should receive an appropriate sentence based on the amount and purity of the drugs he and others smuggled into the country.

According to the testimony, Garcia attempted to enter the Hidalgo Port of Entry in a taxi on May 13, 2022. He claimed he was going to a party in McAllen and had a box of “pulparindo” candy, puppies and various meat products. Authorities referred Garcia to secondary inspection. There, a search of the box of candy revealed approximately 6.2 kilograms of meth and 2.08 kilograms of cocaine. 

Law enforcement testified Garcia had attempted to hide the narcotics in a box of candy and later lied when he claimed he did not know how the drugs had been placed in the box or came into his custody. He coordinated the smuggling of the narcotics with his mother for days ahead of the smuggling event at the Hidalgo Port of Entry.

The defense attempted to convince the jury Garcia had no knowledge of the drugs and was simply doing a favor for his mother. The jury did not believe those claims and found him guilty as charged. 

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

Homeland Security Investigations conducted the investigation with the assistance of Customs and Border Protection. Assistant U.S. Attorney Eliza Carmen Rodriguez and Lee Fry prosecuted the case.

McALLEN, Texas – A 39-year-old Mexican woman illegally residing in Edinburg has been sentenced for her role in harboring aliens, announced U.S. Attorney Alamdar S. Hamdani.

Sanjuana Yurit Garcia-Salazar pleaded guilty Nov. 2, 2022.

Today, Chief U.S. District Judge Randy Crane sentenced her to a total of 24 months in federal prison. Not a U.S. citizen, Garcia-Salazar is expected to face removal proceedings following her imprisonment. At the hearing, the court heard additional evidence that Garcia was an indispensable link in the chain of events that led to the death of a migrant. In handing down the sentence, the court noted alien smuggling is an inherently dangerous crime, and the harborers, transporters and money launderers in the conspiracy all understand the risks migrants face as they must walk through the South Texas brush in sweltering heat.

“Leaving a migrant’s dead body on the side of the road is a growing and common tragedy along the southern border and shows the callousness of human smugglers,” said Hamdani. “Today’s sentence is a message that our office will aggressively prosecute those who smuggle migrants and harbor migrants, treating them as chattel and endangering their lives solely for profit.”

Law enforcement had discovered the body of a deceased Guatemalan citizen in Edna near FM 234.

The investigation revealed the victim had been harbored at a residence in Edinburg before transportation further into the United States.

Authorities went to a residence believed related to the crime residence Sept. 13, 2022, where they encountered Garcia-Salazar. A subsequent search led to the discovery of 21 individuals illegally present in the United States. Garcia-Salazar admitted she harbored 50 to 60 individuals per week for two years for financial gain.

She further acknowledged knowing about the Guatemalan male whom she had harbored at her residence. She noted he had a really bad cough before being transported away from her residence.

Garcia-Salazar has been in custody since her arrest where she will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

Border Patrol conducted the investigation with the assistance of the Jackson County Sheriff’s Office.

Assistant U.S. Attorney Jongwoo Chung prosecuted the case, which was brought as part of the Missing Migrant Program (MMP). Established in 2021, MMP’s objective is to review migrant smuggling fatalities and determine if there is the possibility of further investigation and prosecution.

A federal jury convicted a Texas physician and clinic office manager yesterday for operating a pill-mill clinic that unlawfully prescribed over 600,000 opioid pills in exchange for cash.

According to court documents and evidence presented at trial, Dr. Oscar Lightner, 73, and Andres Martinez Jr., 29, both of Laredo, operated Jomori Health and Wellness (Jomori), a purported Houston pain management clinic, as a pill mill. Lightner, who was the owner of and physician at Jomori, unlawfully prescribed dangerous combinations of controlled substances including hydrocodone, carisoprodol, and alprazolam to his patients without a legitimate medical purpose, in exchange for cash payments ranging from $250 to $500 per patient. Martinez, who was Jomori’s office manager and Lightner’s stepson, coordinated with “crew leaders” to bring multiple people – including individuals living in homeless shelters – into Jomori to pose as patients. Jomori received over $1.2 million in cash over fourteen months through its scheme that resulted in the unlawful distribution and dispensing of over 600,000 Schedule II opioids – including hydrocodone – and other controlled substances.

Lightner was convicted of one count of conspiracy to distribute and dispense controlled substances and two counts of unlawfully distributing and dispensing controlled substances. Martinez was convicted of one count of conspiracy to distribute and dispense controlled substances and one count of unlawfully distributing and dispensing controlled substances. Lightner and Martinez face a maximum penalty of 20 years in prison on each count and are both are scheduled to be sentenced on Aug. 8. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Assistant Attorney General Kenneth A. Polite, Jr. 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 DEA made the announcement.

The DEA investigated the case.

Trial Attorneys Monica Cooper 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 https://www.justice.gov/criminal-fraud/health-care-fraud-unit.

HOUSTON – A federal jury has returned a guilty verdict against a 44-year-old health care marketer in a conspiracy to pay and receive health care kickbacks, announced U.S. Attorney Alamdar S. Hamdani.

The jury deliberated for 15 minutes following a two-day trial before finding Patrick Osemwengie, Richmond, guilty of a one-count conspiracy to pay and receive kickbacks.

“Health care peddlers like Osemwengie prey on the elderly and are part of the larger health care fraud problem,” said Hamdani. “Illegal kickbacks and related crimes damages Medicare’s ability to help those that truly need it. We will continue to prosecute these individuals and work to preserve the system designed to protect and insure our nations’ most vulnerable citizens.”

At trial, the jury heard from witnesses from Ebra Home Health who testified Osemwengie would sell them Medicare patients. He charged $500 a kickback for an initial home health certification and a $250 kickback for a recertification.

A Medicare representative testified that Medicare prohibits payment of kickbacks for home health services.

The jury also heard from an elderly Medicare beneficiary who explained how Osemwengie paid him money to sign up for home health care companies including Ebra Home Health. He testified he was not able to get home health when he actually needed it because of the past fraudulent billings Osemwengie helped facilitate.

Evidence revealed Osemwengie received $13,000 in kickback payments from Ebra Health Care Services.

The defense attempted to convince the jury Osemwengie was being paid $50 an hour for passing out flyers and not that the money was a result of kickbacks. However, the owner of Ebra Home Health refuted that assertion at trial and testified Osemwengie was paid per patient, in violation of the anti-kickback statute. The jury did not believe the defense and found Osemwengie guilty as charged.

U.S. District Judge Sim Lake presided over the trial and has set sentencing for July 7. At that time, Osemwengie faces up to five years in federal prison as well as a possible $250,000 maximum fine. 

Osemwengie was permitted to remain on bond pending that hearing.

The Texas Attorney General’s Medicaid Fraud Control Unit, Department of Health and Human Services - Office of Inspector General and FBI conducted the investigation. Special Assistant U.S. Attorney Abdul Farukhi and Assistant U.S. Attorney Christian Latham prosecuted the case.

HOUSTON – A 23-year-old non-U.S. citizen illegally residing in Houston has pleaded guilty to illegally re-entering the country and to unlawfully possessing a firearm, announced U.S. Attorney Alamdar S. Hamdani.

Jairon Odair Pineda-Gomez is a citizen of Honduras and is an alleged member of the 18th Street gang.

In January 2021, Pineda-Gomez was arrested for illegally re-entering the country. Released on bond, he later cut off his ankle monitor and absconded while charges were pending.

Authorities arrested him for the bond violation in September 2022, at which time he had a Smith & Wesson .40 caliber pistol in his backpack. Records indicate Pineda-Gomez had pointed the pistol at multiple people, including a 9-year-old child, in July 2022. He was also seen on surveillance video shooting a gun in the air. 

Chief U.S. District Judge Randy Crane accepted the plea and set sentencing for June 21. At that time, Pineda-Gomez faces up to 15 years for the firearms conviction as well as another two for the illegal re-entry as well as a possible $250,000 maximum fine. 

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

U.S. Marshals Service and Immigrations and Customs Enforcement Enforcement and Removal Operations conducted the investigation. Assistant U.S. Attorney Stephanie Bauman is prosecuting the case.

McALLEN, Texas – A 49-year-old Rio Grande City man has been arrested for Travel Act violations, federal programs theft and Hobbs Act extortion under color of official right, announced U.S. Attorney Alamdar S. Hamdani.

Victor Canales was the former county attorney for Starr County. He is expected to make his initial appearance before U.S. Magistrate Judge Nadia S. Medrano at 9 a.m. Monday, April 10.  

A federal grand jury returned the nine count indictment April 5, which was unsealed today upon his arrest.

According to the indictment, from on or about Jan. 1, 2005, until on or about April 20, 2022, Canales was the elected county attorney. In that role, he had the authority to collect fines and fees and to choose whether or not to prosecute certain offenses, according to the charges. 

The indictment also alleges that Starr County had received more than $10,000 in federal benefits each year between 2018-2021. During that time, Canales allegedly embezzled property worth at least $5,000 in each of those years.

Further, Canales knowingly obstructed and affected commerce by extortion by obtaining property not due to him on four separate occasions in 2021, according to the indictment. Canales also allegedly knowingly and willfully used a facility in interstate and foreign commerce to carry on unlawful activity between 2017 and 2021.  

Canales is charged with one count of the Travel Act violations which carries a possible sentence of up to five years in federal prison, upon conviction. He also faces a maximum of 10 years on each of four counts of federal programs theft and up to another 20 years on each conviction of Hobbs Act extortion under color of official right. All charges also carry a possible $ 250,000 maximum fine.

The FBI worked in partnership with the Texas Office of the Attorney General to conduct the Border Corruption Task Force (BCTF) investigation with the assistance of OCDETF Operation Ice River agencies including the Drug Enforcement Administration, Texas Department of Public Safety – Texas Rangers and Homeland Security Investigations.

The BCTF is comprised of multiple state and federal agencies that serve to disrupt and dismantle corrupt domestic public officials that operate along the southwest border.  

Assistant U.S. Attorney Patricia Cook Profit 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 local woman has been convicted of seven counts of aiding and assisting in preparing false tax returns, announced U.S. Attorney Alamdar S. Hamdani.

A federal jury sitting in Houston returned a guilty verdict April 3 against Cheryl Christin Kissentaner following a four-day trial.

At trial, the jury heard from federal agents as well as five of Kissentaner’s clients.

Testimony and evidence revealed individuals paid Kissentaner to prepare tax returns from 2016 through 2019 through her company First Financial Tax Services. However, she was not legally allowed to do so. The jury heard that a paid tax preparer is required to have paid all of his or her own tax returns, but  Kissentaner had failed to pay her 2012-2017 tax returns until late 2019. This was after the tax returns she prepared and filed for a fee.

From 2016 through 2019, Kissentaner prepared at least nine tax returns in which she created fake businesses that allegedly operated at losses. They also claimed false fuel tax credits, state income tax deductions for Texas residents (who did not pay a state income tax), false medical expenses, false medical expenses, unemployed reimbursement expenses, false contributions to charity, other false expenses for businesses and failed to report IRA distributions.

Kissentaner also claimed that, pursuant to an engagement letter she prepared for her clients, she owed no duty to examine their returns for fake claims. However, Kissentaner filed numerous certificates under oath with the IRS in which she promised the government she would exercise due diligence in examining the tax returns she prepared and filed. She also charged tax preparer fees well in excess of other firms that provided the same services and asked potential clients to identify a reference and offered them a fee if they referred individuals themselves. 

At trial, evidence showed that 98 percent of her clients obtained a refund even though several owed as much as $25,000 and did not pay any income taxes throughout the year. One such client had been obtaining a refund in excess of $8,000 each year. However, after Kissentaner became aware she was under investigation, that client was informed she owed over $10,000. When she inquired as to the change, Kissentaner untruthfully claimed that it was due to a change in the tax law and due to the client’s son now attending college on a full-time basis. 

Further, a large percentage of Kissentaner’s clients claimed fuel tax credits despite the fact that only 0.2 percent of all tax payers would be eligible for that benefit.      

U.S. District Judge David Hittner presided over the trial and set sentencing for June 29. At that time, Kissentaner faces up to three years imprisonment for each count of conviction.

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

IRS-Criminal Investigation conducted the investigation. Assistant U.S. Attorneys Adam Laurence Goldman and Tyler White prosecuted the case.