Southern District of Texas

HOUSTON – A 30-year-old Orlando, Florida, man has admitted to conspiracy to commit wire fraud in connection with a scheme to defraud the United States of COVID related disaster loan proceeds, announced U.S. Attorney Alamdar S. Hamdani.

Dylan Kinlock entered his plea of guilty today. Co-defendant Felicia Garza, 36, Houston, pleaded guilty to the same charge Jan. 9.

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 $709,665 in fee income from individuals he assisted in securing the fraudulent PPP Loans.

Numerous individuals residing in the Southern District of Texas applied for PPP loans through Kinlock. They all reported that Kinlock attached fraudulent documents to their application without their knowledge, and that 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 solicited each of his victims to execute a contract with him in which they agreed to share a portion of their PPP loans.

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

He used the monies to pay off his home in Florida. As part of his plea, he has 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.

Senior U.S. District Judge David Hittner accepted the pleas and set sentencing for April 11. At that time, each faces up to 20 years in prison and a possible $250,000.

Kinlock was permitted to remain on bond pending sentencing. Garza also remains on bond.  

IRS - Criminal Investigation conducted the investigation. Assistant U.S. Attorney Jay Hileman is prosecuting the case.

LAREDO, Texas - A 34-year-old citizen of the Dominican Republic has pleaded guilty to conspiracy to transport undocumented aliens within the United States resulting in a death, announced U.S. Attorney Alamdar S. Hamdani.

Wilkin Perez-Perez had been in charge and managing the transportation of aliens into the United States as well as the harboring of these aliens in the country.  

On Sept, 21, 2017, Melvin L. Barahona-Godoy and Yoryi Alexis Perez led several people to the Rio Grande River. Two of the undocumented aliens drowned while trying to cross the river and into the United States. Their bodies were discovered along the river banks.  

The investigation led to Perez-Perez who had returned to the Dominican Republic. He was determined to being in charge of and managing the U.S. branch of the organization. He had coordinated the transportation of these aliens into the interior of the United States and harboring them in Laredo. This led to the two deaths.

Authorities ultimately apprehended him on the charges. He was later extradited to the United States.

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

Perez-Perez has been and will remain in custody pending that hearing. 

Melvin L. Barahona-Godoy, 27, Guatemala, and Perez, 33, Dominican Republic, were also charged in relation to the transportation and harboring of the men and others. They have since been convicted and sentenced.

Homeland Security Investigations, Border Patrol and U.S. Marshals Service conducted the investigation.

Assistant U.S. Attorney Brandon Scott Bowling is prosecuting the case.

BROWNSVILLE, Texas – A 22-year-old man illegally residing in San Benito has been ordered to federal prison following multiple convictions, announced U.S. Attorney Alamdar S. Hamdani.

Edgar Garcia-Torres pleaded guilty July 28, 2022, to harboring undocumented individuals within the United States for commercial advantage and private financial gain, being an alien in possession of a firearm and illegal re-entry into the United States.

Today, U.S. District Judge Fernando Rodriguez Jr. ordered Garcia-Torres to serve 48 months in federal prison. Not a U.S. citizen, Garcia-Torres is again expected to face removal proceedings following his imprisonment. In handing down the sentence, the court noted the multiple crimes to which Garcia-Torres pleaded guilty.

On June 13, 2022, law enforcement discovered two harbored aliens at a residence located on Palm Drive in San Benito. Shortly after, they arrested Garcia-Torres for harboring the undocumented individuals. A subsequent search of a second residence located on Bowie Street resulted in the seizure of two firearms, one of which was stolen, and $17,500 in U.S. currency. Authorities were able to link the items to Garcia-Torres.

He ultimately admitted to harboring 50-60 undocumented aliens at the location.

Garcia-Torres had been previously removed from the country and did not have lawful presence in the United States.

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.

Border Patrol, Homeland Security Investigations and Cameron County Precinct 4 Constable’s Office conducted the investigation. Assistant U.S. Attorney David Coronado prosecuted the case.

CORPUS CHRISTI, Texas – A 70-year-old San Antonio woman has pleaded guilty to possessing with the intent to distribute more than 90 kilograms of marijuana, announced U.S. Attorney Alamdar S. Hamdani.

On Sep. 11, 2022, Diana Vela drove a Ford Fusion sedan into the primary inspection area of the Border Patrol (BP) checkpoint located near Falfurrias. A service K-9 alerted to the presence of narcotics in the vehicle. When authorities asked for permission to search the sedan, Vela reported to have drugs in the trunk.

When agents opened the trunk, they discovered 10 large, vacuum-sealed bundles of marijuana weighing over 200 pounds.

Laboratory analysis later confirmed the substance in the bundles was marijuana.

The marijuana had a total weight 91 kilograms with an estimated street value of more than $1 million.

U.S. District Judge Nelva Gonzales Ramos will impose sentencing April 12. At that time, Vela faces up to 40 years in prison as well as a maximum $1 million possible fine.

She was permitted to remain on bond pending that hearing.

The Drug Enforcement Administration conducted the investigation with the assistance of BP. Assistant U.S. Attorneys John Marck and Robert D. Thorpe Jr. are prosecuting the case.

CORPUS CHRISTI, Texas – A tax preparer has been sent to federal prison following her conviction for conspiring to commit tax fraud over a four-year period, announced U.S. Attorney Alamdar S. Hamdani.

Jeannette Villarreal pleaded guilty July 6, 2022, to preparing and filing income tax returns for clients under the business name of J&G Armadillo’s Tax Service aka Reals Tax Service.

Today, U.S. District Judge Nelva Gonzales Ramos imposed an 18-month term of imprisonment as well as a $15,000 fine. She must also serve three years of supervised release following her incarceration. At the hearing, the court heard additional evidence about the scope of the conspiracy which included thousands of fraudulent tax returns prepared over a six-year period resulting in a significant tax loss to the United States. In handing down the prison term, Judge Ramos noted Villarreal was the leader of an extensive criminal activity and she had recruited her two daughters into the enterprise. Judge Ramos concluded that a prison sentence was necessary despite Villareal’s lack of criminal history to provide just punishment and afford adequate deterrence. 

Villarreal’s two daughters, Leannette Villarreal and Zeannette Salazar, were also convicted in the conspiracy.

“These three tax preparers not only betrayed the trust of their clients, who counted on them to prepare accurate returns, they betrayed the trust of all taxpaying Americans,” said Special Agent in Charge Ramsey E. Covington of IRS - Criminal Investigation’s Houston Field Office. “As we enter the 2023 tax filing season, I implore all taxpayers who plan to hire a third-party to prepare and file their tax return to choose their preparer wisely and ask questions before and during the preparation process. Finally, always ensure everything on your tax return is both correct and legitimate before signing the return, or Form 879 - IRS e-File Signature Authorization, and submitting the return to the IRS.”

At the time of their pleas, Villarreal and her daughters each admitted to one count of conspiracy to defraud the United States by willfully aiding and assisting in the preparation of false income tax returns.

On numerous occasions, they knowingly reported inaccurate earnings, fictitious charitable contributions and improper tax credits in order to increase the refund paid to the client. The tax returns purported their clients were permitted to claim deductions, credits or both. However, they were not entitled to claim more money, resulting in a tax loss to the United States.

Jeannette Villarreal 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. Attorneys Robert D. Thorpe Jr. and John Marck prosecuted the case.

LAREDO, Texas – A 29-year-old Laradoan has been ordered to federal prison for possession of a firearm by a convicted felon, announced U.S. Attorney Alamdar S. Hamdani.

Jimmy Lara pleaded guilty Feb. 28, 2022.  

Today, U.S. District Judge Diana Saldaña ordered Jimmy Lara to serve a total of 108 months in prison to be immediately followed by three years of supervised release. At the hearing, the court heard additional information about possible enhancements for committing a felony with the firearm and discarding the loaded firearm near a school.

On Jan. 5, 2022, authorities responded to a 911 report of shots fired on the 1500 block of Pinder Avenue. There, a passenger in a brown pickup truck had apparently fired shots at a white van.

Law enforcement observed a vehicle matching the description and attempted a traffic stop. Lara was the passenger, but had exited the vehicle and began running towards Juarez Avenue. He appeared to have an object in one of his hands.

Authorities briefly chased him on foot and apprehended him after approximately one block. They returned to Juarez avenue where they located a .22 caliber revolver on the sidewalk.

The investigation revealed Lara has prior convictions for robbery and aggravated robbery. As such, he is prohibited from possessing a firearm or ammunition per federal law.

In addition, the firearm was reported stolen out of Mathis.

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

The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation with the assistance of the Laredo Police Department. Assistant U.S. Attorney Paul A. Harrison is prosecuting the case.

VICTORIA, Texas – A 53-year-old resident of Harlingen has been ordered to prison for his role in a cocaine conspiracy, announced U.S. Attorney Alamdar S. Hamdani.  

Tony “Klownman” Torres, a general within the Texas Chicano Brotherhood criminal organization, pleaded guilty Nov. 8 , 2022, to conspiracy to possess with intent to distribute cocaine and being a felon in possession of a firearm.  

Today, Senior U.S. District Judge John D. Rainey ordered Torres to prison for 10 years to be immediately followed by five years of supervised release.

The Texas Chicano Brotherhood is a prison gang operating primarily in the Rio Grande Valley. Many members of the criminal organization have been convicted of crimes that include murders, home invasions, kidnappings and drug trafficking.

“Gangs like the Texas Chicano Brotherhood often rely on trafficking deadly narcotics to fund their operations and other illicit criminal activities,” said Assistant Special Agent in Charge Mario Trevino of Homeland Security Investigations (HSI) Corpus Christi. “By working alongside our federal, state and local law enforcement partners to disrupt their drug trafficking operations, we are able to keep these deadly poisons from destroying countless lives and prevent the gang from raising the criminal proceeds that they need to reign terror on our local communities.”

The investigation began in 2016 and revealed the drug trafficking operation involved the distribution of over five kilograms of cocaine. It led to the identities of at least 70 Texas Chicano Brotherhood members and exposed the organization’s rank and structure.

Torres was one of two generals and oversaw the groups criminal activities in the “free world” after they were released from prison. Torres was found to have distributed cocaine in the Harlingen area as his part of the overall conspiracy.

Ultimately, law enforcement conducted a search warrant at his residence which resulted in the seizure of a .357 Smith & Wesson revolver. As a convicted felon, he is prohibited per federal law of possessing a firearm or ammunition.  

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

Torres is the third high-ranking member of the gang to be sentenced in the case. In 2020, Judge Rainey sentenced Ricardo Garcia, Rio Grande City, to a 20-month-term of imprisonment, while Rafael Diaz, also of Rio Grande City, received a sentence of 145 months. Garcia and Diaz are a major and captain, respectively, in the Texas Chicano Brotherhood organization.

HSI conducted the investigation along with Texas Department of Public Safety; Bureau of Alcohol, Tobacco, Firearms and Explosives; Border Prosecution Unit from the Starr County and Hidalgo County District Attorney’s Office and Texas Office of the Attorney General. Assistant U.S. Attorneys Patti Hubert Booth and David Paxton prosecuted the case.

CORPUS CHRISTI, Texas - A 37-year-old member of the Texas Syndicate prison gang has been ordered to federal prison for possessing firearms as a convicted felon, announced U.S. Attorney Alamdar S. Hamdani.

John Henry Jimenez aka Joker, Corpus Christi, pleaded guilty Sept. 28, 2022.

Today, U.S. District Judge Nelva Gonzales Ramos ordered Jimenez to serve 40 months in federal prison to be immediately followed by three years of supervised release.

At the hearing, Judge Ramos heard evidence of his extensive criminal history involving narcotics, firearms, burglary and assaults. She also heard evidence that Jimenez is an active member in the Texas Syndicate Prison Gang.

On March 2, 2022, law enforcement conducted a traffic stop on the vehicle Jimenez was driving, at which time they found a handgun with an obliterated serial number under his seat.

A traffic stop two months later led to his arrest again. While officers were taking him into custody, they discovered a handgun in his waistband. 

Jimenez had been on supervised release since 2020 after serving a 77-month-term for being a felon in possession of a firearm. As a convicted felon, he is prohibited from possessing a firearm or ammunition per federal law.

Jimenez 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 Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation with the assistance of the Corpus Christi Police Department’s Gang Unit. Assistant U.S. Attorney Barbara J. De Pena prosecuted the case.

VICTORIA, Texas – A 47-year-old South Texan has been ordered to prison after admitting to trafficking cocaine from Hidalgo County to other states across the country, announced U.S. Attorney Alamdar S. Hamdani.

Idalia Guzman pleaded guilty Feb. 6, 2019.

Today, Senior U.S. District Judge John D. Rainey imposed a 96-month sentence to be immediately followed by five years of supervised release. At the hearing, the court heard additional testimony from the prison ministries representative and learned that Guzman had received a theology degree while awaiting sentencing.

The narcotics investigation began in 2017 which led to the discovery that a group was planning to smuggle an undetermined amount of cocaine from Hidalgo County past the Falfurrias Border Patrol checkpoint.

Authorities stopped a vehicle Guzman was driving in Premont. Her husband Victor Del Toro, Pharr, was the passenger. Law enforcement found approximately a half kilogram of cocaine concealed in the vehicle.

Further investigation revealed the Texas Chicano Brotherhood was responsible for smuggling 10 similar size loads of cocaine to San Diego, Texas, and the states of Michigan and Florida.

At the time of her plea, Guzman admitted her involvement and acknowledged she had transported over 10 times in the same manner.

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

Del Toro was sentenced in 2019 to 120 months incarceration.

Homeland Security Investigations conducted the investigation along with the Texas Department of Public Safety; Bureau of Alcohol, Tobacco, Firearms and Explosives; District Attorney Offices in Starr County and Hidalgo Counties and Texas Office of the Attorney General. Assistant U.S. Attorneys Patti Hubert Booth and David Paxton prosecuted the case.

CORPUS CHRISTI, Texas - A 63-year-old man has pleaded guilty to possession with intent to distribute approximately 16 kilograms of cocaine, announced U.S. Attorney Alamdar S. Hamdani.

On Sept. 7, 2022, Ascencion Garza Jr. drove his truck into the primary inspection lane of a Border patrol (BP) checkpoint located near Falfurrias. There, authorities searched his vehicle and discovered 15 bricks of cocaine in concealed compartments within the rear quarter-panels.

The drugs weighed approximately 16 kilograms and have an estimated street value of more than $1.1 million.

U.S. District Judge Nelva Gonzalez Ramos will impose sentencing April 11. At that time, Garza faces up to life in federal prison and a possible $10 million maximum fine.

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

Homeland Security Investigations and Customs and Border Protection conducted the investigation. Assistant U.S. Attorney Tyler Foster is prosecuting the case.

CORPUS CHRISTI, Texas – A 43-year-old Corpus Christi man is facing life in prison after robbing a bank during a 45-minute crime spree that left one person dead and another seriously injured, announced U.S. Attorney Alamdar S. Hamdani.

Anthony Dwayne Carrington pleaded guilty to one count of bank robbery and one count of brandishing a firearm during the commission of a crime of violence.

On Aug. 8, 2022, Carrington entered the American Bank – Corpus Christi South branch on South Padre Island Drive in Corpus Christi. He approached the teller station while holding a silver pistol in his hand, pointed it directly at a bank employee and demanded he give Carrington all the money from the drawer. Carrington further warned the employee not to press the alarm or make a scene. Fearing for his life, the teller complied with Carrington’s demands.

Further investigation revealed two shootings that occurred a short distance from the bank within 45 minutes of the robbery - an attempted murder in a private residence and a homicide at P.F. Chang’s restaurant.

Carrington was an employee at that restaurant and matched the description of both shooters.

Law enforcement conducted a traffic stop later the same day, identified Carrington and took him into custody. Carrington had discarded the firearm used during the robbery and both shootings. Authorities also recovered it from an empty grass lot.

Carrington ultimately admitted to shooting the individual at the private residence, shooting a co-worker at P.F. Chang’s, robbing American Bank and being in possession of the firearm despite being a previously convicted felon.

U.S. District Judge David S. Morales will impose sentencing March 29. At that time, Carrington faces up to 25 years for the robbery as well as another seven years to life for the firearms charge which must be served consecutively to any other prison term imposed.

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

The FBI conducted the investigation with the assistance of the Corpus Christi Police Department. Assistant U.S. Attorney John Marck is prosecuting the case.

McALLEN, Texas – A 42-year-old Raymondville man has been ordered to federal prison for drug trafficking, announce­d U.S. Attorney Alamdar S. Hamdani.

Ricardo Garcia Jr. pleaded guilty July 29, 2022, admitting he imported three kilograms of meth into the United States from Mexico.

Today, U.S. District Judge Randy Crane ordered him to serve a 120-month sentence to be immediately followed by five years of supervised release. At the hearing, the court heard about Garcia’s various gang affiliations before imposing the sentence. Judge Crane noted Garcia was not in a leadership position of control within a drug trafficking organization, but did transport narcotics into the United States. 

On May 18, 2022, Garcia attempted to make entry into the United States through the Hidalgo Port of Entry. During inspection, Garcia changed his story several times regarding his purpose of entering the country. A narcotics K-9 alerted to the vehicle and to Garcia himself.

Law enforcement referred him to secondary inspection where they soon found 12 packages of meth concealed under his clothing and inside of his boots. Lab results indicated the meth had a purity level of 95%.

Garcia subsequently admitted he was importing the meth from Mexico into the United States and was to be paid $2,000 for delivery of the drugs to McAllen.

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. Assistant U.S. Attorney Devin V. Walker prosecuted the case.

LAREDO, Texas – A 23-year-old man from Monterrey, Mexico, has pleaded guilty to conspiring to possess with intent to distribute 6.15 kilograms of cocaine, announced U.S. Attorney Alamdar S. Hamdani.

On Oct. 2, 2022, Luis Carlos Rodriguez-Elizondo attempted to drive through the Lincoln Juarez Port of Entry in Laredo. At that time, he told authorities he was visiting Six Flags and planned an overnight trip. However, he did not have luggage and did not have a believable travel itinerary.

An X-ray scan also revealed anomalies near the center console of his vehicle. Upon further inspection, law enforcement discovered several bundles containing cocaine.

The drugs had an estimated street value of $150,000.

U.S. District Judge Marina Garcia Marmolejo will impose sentencing April 11. At that time, Rodriguez0-Elizondo faces up to life in prison and a possible $10 million maximum fine.

Homeland Security Investigations conducted the investigation. Assistant U.S. Attorneys Matthew Isaac and Michael Makens are prosecuting the case.

McALLEN, Texas – A 22-year-old Roma man has been ordered to federal prison following his conviction of conspiracy to transport undocumented aliens resulting in serious bodily injury, announced U.S. Attorney Alamdar S. Hamdani.

Orlando Gonzalez pleaded guilty Aug. 1, 2022.

Today, Chief U.S. District Judge Randy Crane sentenced Gonzalez to serve 72 months in federal prison followed by three years supervised release. The court found Gonzalez’s actions to be a danger to the community, noting he led law enforcement agents on a 100 mph high speed chase which resulted in a tragic rollover. Several individuals suffered life altering injuries.

In May 20, 2022, law enforcement learned that several undocumented aliens had entered a blue GMC near Fronton. As authorities arrived on scene, Gonzalez began to drive the vehicle at a high rate of speed veering on and off the main roadway. In that process, he struck one of the responding law enforcement vehicles.

Gonzalez continued to drive at a high rate of speed until he struck a utility pole which caused the vehicle to roll over multiple times, coming to rest in a local church parking lot. Two of the three undocumented aliens who were in the vehicle were ejected approximately 50ft in the air. One suffered a traumatic brain injury and was placed on life support.  

At the time of the incident, Gonzalez was on supervised release from a 2020 human trafficking conviction.

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 the Border Patrol and the Texas Department of Public Safety. Assistant U.S. Attorney Eric D. Flores prosecuted the case.

HOUSTON – A 28-year-old Indian citizen who illegally resided in the United States has received his sentence following his conviction of conspiracy, announced U.S. Attorney Alamdar S. Hamdani.

Moin Idrishbhai Pinjara pleaded guilty Nov. 30, 2021.

Today, U.S. District Judge Andrew S. Hanen imposed a 29-month sentence.  Not a U.S. citizen, Pinjara is expected to face removal proceedings following his imprisonment. The court further ordered him to pay $635,103 in restitution to the victims of the conspiracy.

Between December 2019 and July 2020, Pinjara was a “runner” in an Indian-based call center scam. Callers in India would contact potential victims in the United States to extort money from them. Pinjara would then use aliases and fake identification documents to pick up parcels containing cash which the victims had mailed.

One common script used in the schemes involved coercing victims into believing federal agents were investigating them.  The “agent” on the phone would convince the victim the only way to clear his or her name from investigation was to send cash in a parcel package shipped through FedEx to a name and address they provided. Runners like Pinjara in the United States would then pick up the parcels.

Throughout the course of the investigation, law enforcement identified hundreds of victims of this scheme, with total losses exceeding millions of dollars. 

The Social Security Administration (SSA) consistently warns people of similar scams and encourages citizens to protect themselves.

Prior to Pinjara’s sentencing today, three other runners had been sentenced in Houston for their involvement in the same conspiracy. Viral Gandhi and Burhan Syed, both 33 and Indian citizens illegally residing in the United States, received 27 and 41 months, respectively. Myisha Carter, 33, Houston, was ordered to serve a 71-month sentence to be immediately followed by three years of supervised release. All must also pay restitution.

The SSA - Office of Inspector General (OIG), FBI and the Department of Homeland Security – OIG conducted the investigation with the assistance of the Houston Police Department and the Treasury Inspector General for Tax Administration. Assistant U.S. Attorney (AUSA) Stephanie Bauman and Special AUSA Benjamin Sandel prosecuted the cases.

HOUSTON – A 39-year-old Cypress man has agreed to pay to resolve allegations he submitted false claims for the placement of electro-acupuncture devices, announced U.S. Attorney Alamdar S. Hamdani.

Dr. Amr El-Khashab is a podiatrist who practices in Cypress and whom podiatrist Dr. Judith Rubin previously employed. From March 1, 2018, to Nov. 30, 2019, El-Khashab and Rubin billed Medicare for the surgical implantation of neurostimulator electrodes. These are invasive procedures usually requiring use of an operating room. Medicare pays thousands of dollars per procedure.

However, neither Rubin nor El-Khashab performed these surgical procedures. Instead, patients received devices used for electro-acupuncture, which only involves inserting needles into patients’ ears and taping the neurostimulator behind them with an adhesive. 

Rubin previously entered into an $865,000 settlement to address these allegations. 

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

The U.S. Attorney’s Office conducted the investigation with the Department of Health and Human Services – Office of Inspector General and Qlarant, the Unified Program Integrity Contractor for Medicare. Assistant U.S. Attorney Brad Gray handled the matter.

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

CORPUS CHRISTI – The final member of a of a Corpus Christi drug trafficking organization has been ordered to federal prison following his conviction of conspiracy to possess with intent to distribute meth, announced U.S. Attorney Alamdar S. Hamdani.

Jesse Soliz, 40, Joshua Cadena, 30, Matthew Cadena, 34, all of Corpus Christi, and Luis Reyes-Camacho, 36, a citizen of Mexico unlawfully in the United States, pleaded guilty July 22, 2021, while Yvette Hernandez, 39, and Julio Rodriguez, 52, also of Corpus Christi, entered their pleas Sept. 24, 2021, and March 23, 2022, respectively.

Today, U.S. District Judge Nelva Gonzales Ramos sentenced Matthew Cadena to a 135-month sentence to be immediately followed by five years of supervised release. At the hearing, the court noted the significant quantity of drugs involved and roles Matthew and Joshua Cadena held as mid-level distributors who worked under Soliz.

Judge Ramos previously sentenced the other four for their respective involvement in the conspiracy. Notably, Luis Reyes-Camacho, who was identified as the supplier of the illegal drugs, and Jesse Soliz, who managed the local distribution network, received 324 months and 235 months, respectively.

In March 2020, law enforcement initiated an investigation into a drug trafficking operation in the Corpus Christi area involving meth and heroin. This resulted in the identification and arrest of multiple individuals ranging from street level dealers to mid-level suppliers.

On April 10, 2020, authorities conducted a traffic stop and identified Matthew Cadena and Hernandez as the driver and passenger, respectively. Because Cadena did not have a valid driver’s license, Cadena was arrested and his vehicle impounded. Inside the car, they discovered approximately 60 grams of meth the center console.

In January 2021, law enforcement learned Jesse Soliz, Joshua Cadena, Matthew Cadena and their associates were going to receive a large shipment of illegal narcotics, believed to be meth and heroin, from an unknown individual that resided outside of the Corpus Christi area. Upon surveilling Soliz’s residence, law enforcement observed Luis Reyes-Camacho arrive in a vehicle. Soliz walked out of the garage as Reyes-Camacho retrieved a large bag from the vehicle. Both then entered the residence. A short time later, several individuals exited the garage and drove away in multiple vehicles.

Law enforcement stopped Rodriguez and Joshua Cadena in a vehicle in which they later found two clear baggies containing approximately 60 grams of meth. During a simultaneous stop, a K-9 alerted to the front engine of a vehicle in which Reyes-Camacho was driving. Soliz was the passenger. A subsequent search resulted in the discovery of two kilograms of meth.

Authorities also discovered an additional three kilograms of meth in the residence of Soliz as well as a kilogram of heroin, approximately $26,000, a Sig Sauer 9mm pistol and ammunition.

Matthew Cadena 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 and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the Organized Crime Drug Enforcement Task Forces (OCDETF) investigation dubbed Operation Smoke’M Out with the assistance of Texas Department of Public Safety and the Corpus Christi Police Department. 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 26-year-old Richwood resident has been ordered to federal prison for forcing teenagers to engage in commercial sex, announced U.S. Attorney Alamdar S. Hamdani.

Charlie James Jones pleaded guilty Nov. 26.

Today, U.S. District Judge George C. Hanks sentenced him to a total 190-month-term of imprisonment. At the hearing, the court heard that in addition to the girl he pleaded guilty to trafficking, he also caused several other minors to engage in commercial sex. In handing down the prison term, the court noted that Jones had a manipulative personality both emotionally and physically and that what he did was horrific. Jones was further ordered to pay $7,200 in restitution to the victim and will serve 10 years on supervised release following completion of his prison term. During that time, he will have to comply with numerous requirements designed to restrict his access to children and the internet. Jones will also be ordered to register as a sex offender.

Jones pleaded guilty to trafficking one girl in and around Angleton in July 2015, but also admitted to doing the same to another minor.  

On one occasion, he had taken the girls, then ages 16 and 17, to a local motel. He photographed the minors in thong underwear and posted the images online in ads promoting them for commercial sex. 

Over the course of several subsequent weekends, Jones forced the younger victim to engage in commercial sex and took all the proceeds. If she resisted, Jones became violent with her by grabbing her throat and pulling her hair. He also forced himself on her sexually. 

The other female was allegedly Jones’ girlfriend. However, he also made her engage in commercial sex and was seen committing acts of violence against her.

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

The FBI and Texas Department of Public Safety conducted the investigation. Assistant U.S. Attorney Sherri L. Zack prosecuted the case.

McALLEN, Texas – A local tax preparer has been ordered to federal prison following her conviction of preparing false and fraudulent tax returns on behalf of taxpayers, announced U.S. Attorney Alamdar S. Hamdani.

Linda Lopez pleaded guilty April 7.

Today, U.S. District Judge Micaela Alvarez ordered Lopez to serve the statutory maximum of 36 months in federal prison to be immediately followed by one year of supervised release. Judge Alvarez noted that she was imposing the maximum sentence allowed under the statute because of the lengthy duration of the tax fraud scheme Lopez perpetrated through her tax preparation business.

“The IRS entrusted Lopez to prepare and electronically file accurate returns for her clients. She violated that trust with the IRS, her clients and the citizens of the United States by instead submitting false tax returns. As we approach the tax filing season, those tax preparers considering preparing false tax returns should know of the extremely negative consequences as evidenced in today’s sentencing,” said Special Agent in Charge Ramsey E. Covington of IRS-Criminal investigation (IRS-CI) - Houston Field Office. “The special agents within IRS-CI, as well as the U.S. Attorney’s office, will continue their aggressive pursuit of those who would attempt to defraud the U.S. tax system."

Lopez was the owner and operator of a tax preparation business known as Premier Tax Solutions which operated from 2012 through 2022 in and around Mission.

At the time of her plea, Lopez admitted that she prepared a federal tax return for a taxpayer that included multiple instances of false and fraudulent information, including false employee business expenses and false residential energy credit qualifying expenses. 

She also agreed to a loss amount that included a tax loss to the IRS related to several fraudulent tax returns she prepared.

Lopez 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-CI conducted the investigation. Assistant U.S. Attorney Andrew Swartz prosecuted the case.

HOUSTON – UOP LLC, dba as Honeywell UOP, a U.S.-based subsidiary of Honeywell International Inc., has agreed to pay more than $160 million to resolve parallel bribery investigations by criminal and civil authorities in the United States and Brazil stemming from bribe payments offered to a high-ranking official at Brazil’s state-owned oil company. 

The U.S. Department of Justice’s resolution is coordinated with prosecutorial authorities in Brazil as well as the U.S. Securities and Exchange Commission (SEC).

According to court documents, Honeywell UOP entered into a three-year deferred prosecution agreement (DPA) with the department in connection with a criminal information filed in the Southern District of Texas charging the company with conspiracy to violate the anti-bribery provisions of the Foreign Corrupt Practices Act (FCPA).

According to the company’s admissions and court documents, between 2010 and 2014, Honeywell UOP conspired to offer an approximately $4 million bribe to a then-high-ranking executive of Petróleo Brasileiro S.A (Petrobras) in Brazil. Specifically, Honeywell UOP offered the bribe to secure improper advantages in order to obtain and retain business from Petrobras in connection with Honeywell UOP’s efforts to win an approximately $425 million contract from Petrobras to design and build an oil refinery called Premium.

“This case exemplifies corporate misconduct on a global level,” said U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas. “Prosecuting and investigating this type of crime is an important role our office takes seriously in order to ensure fair and equal playing fields for U.S. companies and consumers. We will continue our efforts to aggressively investigate and prosecute those who violate the FCPA and combat corrupt practices in order to preserve the integrity of our nation’s business dealings here and abroad.”

According to court documents, in order to effectuate the bribery scheme, Honeywell UOP entered into an agency agreement with a sales agent for the purpose of funding and paying the $4 million bribe to the high-ranking Petrobras executive. In exchange for the bribe, and after obtaining business advantages including inside information and secret assistance from the Petrobras executive, Honeywell UOP won the contract. Honeywell UOP earned approximately $105.5 million in profits from the corruptly obtained business.   

“Honeywell UOP offered to pay millions of dollars in bribes to a high-ranking executive at Brazil’s state-owned oil company to win a lucrative contract,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “Today’s resolution once again demonstrates that in our relentless fight against corruption, the Department of Justice will work together with our partners, both domestic and foreign, to hold companies accountable for their criminal conduct.”

Pursuant to the DPA, Honeywell UOP will pay a criminal penalty of approximately $79 million. The department has agreed to credit up to approximately $39.6 million of that criminal penalty against amounts the company has agreed to pay to authorities in Brazil in connection with related proceedings to resolve an investigation by the Controladoria-Geral da União (CGU), the Ministério Público Federal (MPF) and the Advocacia-Geral de União (Attorney General’s Office). In addition, Honeywell UOP will pay approximately $81 million in disgorgement and prejudgment interest as part of the resolution of a parallel investigation by the SEC. 

“Honeywell UOP conspired to bribe a high-ranking official at Petrobras to win a contract from the company, effectively stifling competition,” said Acting Assistant Director in Charge Michael H. Glasheen of the FBI Washington Field Office. “Bribery schemes like this one transcend borders, and collaboration with our foreign partners is crucial to the fight against international corruption. The resolution announced today demonstrates the FBI's commitment to leveling the playing field across the global marketplace."

“Money is the center of the criminal world and this company became a part of that world when it failed to adhere to national and international laws,” said Special Agent in Charge Ramsey E. Covington of the IRS Criminal Investigation (CI) Houston Field Office. “It did not live up to the trust placed on it by both the public and its shareholders. In situations like this, IRS-CI will pursue criminal enterprises, regardless of where they operate. Our investigation in this case remains open and we are working with our law enforcement and prosecutorial partners to ensure that crime doesn’t pay.”

As part of the DPA, Honeywell UOP has agreed to continue to cooperate with the department in any ongoing or future criminal investigations relating to this conduct. In addition, under the agreement, Honeywell UOP and its parent company, Honeywell International Inc., agreed to continue to enhance its compliance program and provide reports to the department regarding the implementation of compliance measures for the term of the DPA.

The department reached this resolution with Honeywell UOP based on a number of factors, including, among others, the nature and seriousness of the offense. Honeywell UOP received full credit for its cooperation with the department’s investigation, which included, among other things, (i) proactively disclosing certain evidence of which the department was previously unaware; (ii) providing information obtained through its internal investigation, which allowed the department to preserve and obtain evidence as part of its own independent investigation; (iii) making detailed presentations to the department; (iv) voluntarily facilitating interviews of employees; and (v) collecting and producing voluminous relevant documents and translations to the department, including documents located outside the United States. The company promptly engaged in extensive remedial measures including, among other things, terminating and disciplining certain employees involved in the misconduct and strengthening its compliance program. In light of these considerations, the criminal penalty calculated under the U.S. Sentencing Guidelines reflects a 25% reduction off the bottom of the applicable guidelines fine range. 

The FBI Washington Field Office and the IRS-CI Houston Field Office are investigating the case. Brazil’s MPF, CGU and AGU as well as the Justice Department’s Office of International Affairs provided substantial assistance in this matter.

Assistant U.S. Attorney Suzanne Elmilady for the Southern District of Texas and Assistant Chief Gerald M. Moody Jr. and Trial Attorney Gwendolyn Stamper of the Criminal Division’s Fraud Section are prosecuting the case.

The Fraud Section is responsible for investigating and prosecuting FCPA matters.

Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.

UOP LLC, doing business as Honeywell UOP, a U.S.-based subsidiary of Honeywell International Inc., has agreed to pay more than $160 million to resolve parallel bribery investigations by criminal and civil authorities in the United States and Brazil stemming from bribe payments offered to a high-ranking official at Brazil’s state-owned oil company. 

The U.S. Department of Justice’s resolution is coordinated with prosecutorial authorities in Brazil, as well as the U.S. Securities and Exchange Commission (SEC).

According to court documents, Honeywell UOP entered into a three-year deferred prosecution agreement (DPA) with the department in connection with a criminal information filed in the Southern District of Texas charging the company with conspiracy to violate the anti-bribery provisions of the Foreign Corrupt Practices Act (FCPA).

According to the company’s admissions and court documents, between 2010 and 2014, Honeywell UOP conspired to offer an approximately $4 million bribe to a then-high-ranking executive of Petróleo Brasileiro S.A (Petrobras) in Brazil. Specifically, Honeywell UOP offered the bribe to secure improper advantages in order to obtain and retain business from Petrobras in connection with Honeywell UOP’s efforts to win an approximately $425 million contract from Petrobras to design and build an oil refinery called Premium.

“Honeywell UOP offered to pay millions of dollars in bribes to a high-ranking executive at Brazil’s state-owned oil company to win a lucrative contract,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “Today’s resolution once again demonstrates that in our relentless fight against corruption, the Department of Justice will work together with our partners, both domestic and foreign, to hold companies accountable for their criminal conduct.”

According to court documents, in order to effectuate the bribery scheme, Honeywell UOP entered into an agency agreement with a sales agent for the purpose of funding and paying the $4 million bribe to the high-ranking Petrobras executive. In exchange for the bribe, and after obtaining business advantages, including inside information and secret assistance, from the Petrobras executive, Honeywell UOP won the contract. Honeywell UOP earned approximately $105.5 million in profits from the corruptly obtained business.   

“This case exemplifies corporate misconduct on a global level,” said U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas. “Prosecuting and investigating this type of crime is an important role our office takes seriously in order to ensure fair and equal playing fields for U.S. companies and consumers. We will continue our efforts to aggressively investigate and prosecute those who violate the FCPA and combat corrupt practices in order to preserve the integrity of our nation’s business dealings here and abroad.”

Pursuant to the DPA, Honeywell UOP will pay a criminal penalty of approximately $79 million. The department has agreed to credit up to approximately $39.6 million of that criminal penalty against amounts the company has agreed to pay to authorities in Brazil in connection with related proceedings to resolve an investigation by the Controladoria-Geral da União (CGU), the Ministério Público Federal (MPF), and the Advocacia-Geral de União (Attorney General’s Office). In addition, Honeywell UOP will pay approximately $81 million in disgorgement and prejudgment interest as part of the resolution of a parallel investigation by the SEC. 

“Honeywell UOP conspired to bribe a high-ranking official at Petrobras to win a contract from the company, effectively stifling competition,” said Acting Assistant Director in Charge Michael H. Glasheen of the FBI Washington Field Office. “Bribery schemes like this one transcend borders, and collaboration with our foreign partners is crucial to the fight against international corruption. The resolution announced today demonstrates the FBI's commitment to leveling the playing field across the global marketplace.”

“Money is the center of the criminal world, and this company became a part of that world when it failed to adhere to national and international laws,” said Special Agent in Charge Ramsey E. Covington of the IRS Criminal Investigation (CI) Houston Field Office. “It did not live up to the trust placed on it by both the public and its shareholders. In situations like this, IRS-CI will pursue criminal enterprises, regardless of where they operate. Our investigation in this case remains open and we are working with our law enforcement and prosecutorial partners to ensure that crime doesn’t pay.”

As part of the DPA, Honeywell UOP has agreed to continue to cooperate with the department in any ongoing or future criminal investigations relating to this conduct. In addition, under the agreement, Honeywell UOP and its parent company, Honeywell International Inc., agreed to continue to enhance its compliance program and provide reports to the department regarding the implementation of compliance measures for the term of the DPA.

The department reached this resolution with Honeywell UOP based on a number of factors, including, among others, the nature and seriousness of the offense. Honeywell UOP received full credit for its cooperation with the department’s investigation, which included, among other things, (i) proactively disclosing certain evidence of which the department was previously unaware; (ii) providing information obtained through its internal investigation, which allowed the department to preserve and obtain evidence as part of its own independent investigation; (iii) making detailed presentations to the department; (iv) voluntarily facilitating interviews of employees; and (v) collecting and producing voluminous relevant documents and translations to the department, including documents located outside the United States. The company promptly engaged in extensive remedial measures including, among other things, terminating and disciplining certain employees involved in the misconduct and strengthening its compliance program. In light of these considerations, the criminal penalty calculated under the U.S. Sentencing Guidelines reflects a 25% reduction off the bottom of the applicable guidelines fine range. 

The FBI Washington Field Office and the IRS-CI Houston Field Office are investigating the case. Brazil’s MPF, CGU, and AGU, as well as the Justice Department’s Office of International Affairs, provided substantial assistance in this matter.

Assistant Chief Gerald M. Moody Jr. and Trial Attorney Gwendolyn Stamper of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Suzanne Elmilady for the Southern District of Texas are prosecuting the case.

The Fraud Section is responsible for investigating and prosecuting FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.

HOUSTON – A total of 14 people are now in custody for various violations to include drug trafficking, possessing a “Glock switch” and being a felon in possession of a firearm, announced U.S. Attorney Alamdar S. Hamdani.

Those taken into custody yesterday include Houston residents Anthony Ketchum, 35, Anthony Yezeno-Hopkins, 38, Brandon Milson, 32, Hassani Mills, 34, Jaylyn Pinson, 29, Josue Rodriguez, 32, Keith Moore, 34, Michael Henry, 32, Myles Smith, 23, Robert Thomas, 29, Sterling Brumant, 26, Titus Baisey, 35 and Toree White, 27.

Henry, Baisey and Smith  are expected to make their initial appearances at 2 p.m. today before U.S. Magistrate Judge Christina Bryan. Brumant was arrested in California and ordered detained pending further criminal proceedings.

Also charged is Julian Herrera, 26, was previously in custody on related charges. He made his appearance yesterday in Houston along with the other nine men.

Detention hearings are set to begin Dec. 19 at 9 a.m.

A federal grand jury returned the 11-count indictment Dec. 7.  

With the exception of Thomas and Rodriguez, the remaining men are charged with possession with intent to deliver meth. They face up to life in prison and could be ordered to pay fines up to $10 million. Moore faces an additional charge of possession with intent to deliver heroin which carries a maximum of 40 years in prison.

The indictment also alleges Thomas unlawfully possessed a firearm - a device made and intended to convert a semi-automatic pistol to being fully automatic aka Glock auto switch. If convicted, he faces a 10-year possible sentence.

Rodriguez is alleged to have been in possession of a firearm - Ruger 5.7 mm. As a convicted felon, he is prohibited from federal law of such and could also be sentenced to a maximum of 10 years if found guilty.   

The arrests come on the heels of another case involving violent crime as well as a joint announcement on the surge of resources to fight violent crime in Houston.

The FBI and Houston Police Department conducted the investigation.

Assistant U.S. Attorney Lisa Collins 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 20-year-old Houston man has been ordered to federal prison following his conviction of one count of carjacking and one count of discharging a firearm during a crime of violence, announced U.S. Attorney Alamdar S. Hamdani.

Keiffer Frederick Edwards pleaded guilty Sept. 23.

Today, U.S. District Judge Keith Ellison ordered Edwards to serve 71 months for the carjacking. He also received 120 months for the discharging of a firearm offense which must be served consecutively to the underlying carjacking offense. The total 191-month sentence will be immediately followed by five years of supervised release.

On April 28, the victim drove his vehicle to a gas station located at 407 Farm to Market Road 1960 in Houston. While in the parking lot, Edwards approached and attempted to enter the driver’s door of the victim’s vehicle. After a brief struggle, Edwards shot the victim several times, fled the scene in the victim’s vehicle. Law enforcement apprehended him a short time later.

The victim was reported to have 18 gunshot wounds, but medical personnel treated him, and he survived his injuries.

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

The FBI, Harris County Sheriff’s Office, Mont Belvieu and Houston Police Departments and Texas Department of Public Safety conducted the investigation. Assistant U.S. Attorney John Michael Lewis is prosecuting the case.

HOUSTON –A 49-year-old former special agent with Naval Criminal Investigative Service (NCIS) has been sent to prison following her conviction of obstructing justice, making false statements and accepting money and gifts for official acts, announced U.S. Attorney Alamdar S. Hamdani.    

A federal jury sitting in Houston convicted Leatrice Malika DeBruhl-Daniels June 13, following a six-day trial.

Today, U.S. District Judge Gray Miller ordered DeBruhl-Daniels to serve 108 months in federal prison to be immediately followed by one year of supervised release. In handing down the sentence, the court cited DeBruhl’s breach of trust and deterrence.

“Leatrice DeBruhl-Daniels betrayed her badge and our country by revealing sensitive and classified information to the target of an FBI counterterrorism investigation in exchange for money, gifts and affection,” said NCIS Director Omar Lopez. “Holding her accountable will make it clear that NCIS will not tolerate corruption within our ranks.”

DeBruhl-Daniels was a veteran NCIS special agent working in Dubai, United Arab Emirates. There, she met Nadal Diya, a Syrian businessman living in Dubai looking for help in securing a visa to the United States. At that time, Diya was the target of several federal investigations.

At trial, the jury heard from 16 government witnesses, which included numerous agents and Diya himself. Testimony revealed that in 2017, DeBruhl-Daniels used her position to get certain benefits from Diya in exchange for providing information to him about his visa status. The gifts included an expensive birthday party at Diya’s home, approximately $1,400 in cash and the promise of a job for her son in Diya’s company. 

The relationship with Diya eventually became sexual. During that relationship, she revealed he was a target of an FBI counterterrorism investigation, information that was classified at the time. She also told him that if he came to the United States, he would likely be arrested. 

In late December 2017, federal agents had questioned Debruhl-Daniels about Diya. However, she failed to disclose her intimate relationship with him, the gifts he had given her, the job he offered her son and the classified information she provided.

Following the interview, she also visited with Diya and coached him on what to say in a subsequent interview.  

Several months later in May 2018, she left Dubai for Hawaii for a highly sensitive and coveted job. However, she soon learned she would not get the new position. It was only then she confessed to superiors and investigators about her illicit relationship, the monies, party and gifts she had received and the classified information she had previously revealed.

Debruhl-Daniels testified in her own defense at trial. She claimed, among other things, that the classified information she revealed to Diya was public information. She further attempted to convince the jury she did not have a duty to reveal any of the details of her personal relationship with Diya nor her disclosures to him. 

The jury did not believe her claims and found her guilty.

Diya, 50, of Dubai, was previously sentenced and has been removed from the United States.

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

NCIS led the investigation with the assistance of the FBI, Homeland Security Investigations, Department of Commerce, Department of State and the Defense Criminal Investigative Service. U.S. Attorney Alamdar S. Hamdani and Assistant United States Attorney Arthur R. Jones prosecuted the case.

LAREDO, Texas – A 51-year-old Laredo resident has been sentenced for illegal firearms possession, announced U.S. Attorney Alamdar S. Hamdani.

Hector Agustin Esparza pleaded guilty Sept. 12.

Today, U.S. District Judge Diana Saldana ordered him to serve the statutory maximum of 10 years in federal prison to be immediately followed by three years of supervised release. In imposing the sentence, she noted that what Esparza did was very dangerous and that he could have killed members of law enforcement.  

On June 15, law enforcement responded to a “be-on-the-lookout” for a car in relation to a burglary call, located it and attempted to conduct a traffic stop. Esparza was driving and refused to stop. A chase soon ensued through several Laredo streets and parking lots. 

At one point, he pulled into a Sam’s Club parking lot and stopped. However, Esparza then fired at authorities and then fled again. He disregarded a traffic light and ultimately collided with another vehicle. 

Law enforcement took him into custody, at which time they recovered a .40 caliber pistol from the car. 

Esparza admitted to being the shooter during the police chase and claimed to be an ex-Mexican Mafia gang member. Esparza admitted he had recently been released from prison after serving four years for an aggravated robbery. A criminal records check confirmed that Esparza had seven prior felony convictions and was also under indictment at the time.

As a convicted felon, he is prohibited from possessing a firearm per federal law.  

The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted investigation as part of the Texas Anti-Gang Center (TAG) Program with the assistance of the Laredo Police Department. The Laredo TAG became operational in mid-2022, and Esparza was the first person referred for federal prosecution. Nine other cases charging 14 others with drug and firearm charges are pending trial or sentencing in federal court.

These such cooperative matters provide for the establishment of permanent multi-agency teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to combat the shared threat of criminal organization operating in Laredo and surrounding area. Additional information about the TAG Program can be found on the www.stoplaredogangs.org website.

LAREDO, Texas – A 19 year-old Laredo resident has entered a guilty plea to transporting approximately 1.42 kilograms of fentanyl, announced U.S. Attorney Alamdar S. Hamdani.

Ivan Eleodoro Garcia admitted that on Sept. 29, he was driving a 2014 Ford Taurus sedan and stopped for an immigration inspection at the I-35 Border Patrol checkpoint north of Laredo. There, a K-9 positively indicated to concealed humans or narcotics in the rear of the vehicle.

Further investigation led to the discovery of a custom installed hidden compartment between the trunk and passenger area of the sedan where authorities found 13 bags containing 1.42 kg. of blue pills. They initially believed the pills were oxycodone hydrocholoride due to an embossed “M” on each pill. However, a field test later revealed the pills were counterfeit and contained fentanyl.

Garcia has been and will remain in custody pending his sentencing at a later date before U.S. District Judge Diana Saldana. At that time, Garcia faces a minimum of 10 years and up life in prison as well as a possible $10 million maximum fine.

The Drug Enforcement Administration conducted the investigation with the assistance of Border Patrol. Assistant U.S. Attorney Paul A. Harrison is prosecuting the case.

# # #

CORPUS CHRISTI, Texas – A 48-year-old Aransas Pass resident has been ordered to federal prison for possessing a firearm, announced U.S. Attorney Alamdar S. Hamdani.

Kenny Don Jones pleaded guilty Sept. 21.

Today, U.S. District Judge Drew B. Tipton handed Jones a sentence of 90 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the court heard additional evidence that Jones changed his story with investigators about the shooting over the course of two interviews. In handing down the sentence, the court noted his significant criminal history, including a previous murder conviction and convictions for shooting two other individuals.  

On July 20, 2021, authorities learned of a suspicious death. They traveled to the scene and met with the property owner where they found a deceased male subject on the property with a single casing from a discharged round near him in a milk crate.

Jones was also present and eventually reported that the firearm was his and that the deceased male had taken the firearm from his bag and pointed it at him. Jones claimed he he wrestled the firearm away from him and took a step back with the gun in hand. According to Jones, the victim lunged at him and Jones fired a round that struck the victim in between the eyes.

Following the shooting, Jones drove to Rockport where he threw the .9mm Smith & Wesson pistol out of his vehicle. He said he knew he was not supposed to have guns.

Law enforcement later obtained the gun Jones described.  

Jones 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 Bureau of Alcohol Tobacco Firearms & Explosives conducted the investigation with the assistance of the Aransas Pass Police Department. Assistant U.S. Attorney Joel Dunn prosecuted the case.

# # #

CORPUS CHRISTI, Texas – A 40-year-old Three Rivers resident has been ordered to federal prison for distributing more than 500 grams of methamphetamine announced U.S. Attorney Alamdar S. Hamdani.

Roger Lee Martinez pleaded guilty June 1.  

Today, U.S. District Judge Drew B. Tipton ordered him to serve 120 months in federal prison to be immediately followed by five years of supervised release. In handing down the sentence, the court noted Martinez had waived his right to appeal.

The investigation revealed that Martinez had distributed sold varying amounts of meth between Jan. 1, 2018, and July 29, 2020. On some of those occasions, he conducted his criminal activity from a hotel room in Three Rivers.

On Aug. 11, 2020, law enforcement conducted a search at that location which resulted in the discovery of 141.5 grams of meth in a neighboring room inside an air conditioner frame. 

Following his arrest, Martinez admitted he had sold up to 45 ounces of meth per month beginning in 2018.

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

Homeland Security Investigations conducted the investigation with the assistance of the Drug Enforcement Administration, Texas Department of Public Safety and the Live Oak County Sheriff’s Office. Assistant U.S. Attorney Amanda L. Gould prosecuted the case.

# # #

CORPUS CHRISTI, Texas – A 27-year-old Brownsville man has been ordered to prison for attempting to transport cocaine through a Border Patrol checkpoint, announced U.S. Attorney Alamdar S. Hamdani.

Jonathan Martinez pleaded guilty Oct. 6, 2021.

Today, U.S. District Judge Drew B. Tipton ordered him to serve 24 months in federal prison to be immediately followed by three years of supervised release. In handing down the sentence, the court noted that Martinez “really jumped into the deep end” when he committed this offense, as he had no criminal history.

On Oct. 19, 2020, Martinez arrived at the Border Patrol checkpoint located near Sarita. A K-9 alerted to his vehicle, at which time authorities referred him to secondary inspection.

A further search of his vehicle revealed three bundles of cocaine hidden in an aftermarket metal box and the computer module. They had a combined weight of 2.98 kilograms and have an estimated street value of $75,000.

Martinez 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 Drug Enforcement Administration conducted the investigation with the assistance of Customs and Border Protection. Assistant U.S. Attorney Amanda L. Gould prosecuted the case.

# # #

HOUSTON - A federal grand jury in the Southern District of Texas returned an indictment that was unsealed yesterday charging eight men with conspiracy to commit securities fraud for a long-running, social media-based “pump and dump” scheme.

Those indicted include Edward Constantinescu aka Constantin 38, of Montgomery; Perry “PJ” Matlock, 38, of The Woodlands; John Rybarczyk, 32, of Spring; Dan Knight, 23, of Houston; along with Gary Deel, 28, and Tom Cooperman, 34, both of Beverly Hills, California; Stefan Hrvatin, 35, of Miami, Florida; and Mitchell Hennessey, 23, of Hoboken, New Jersey. According to court documents, they allegedly engaged in a wide-ranging securities fraud conspiracy in which the they used their extensive social media presence on Twitter and Discord to hype interest in particular securities by posting false and misleading information in order to “pump” the prices of those securities, while concealing their intent to later “dump” their shares by selling them at the artificially inflated prices. From in or around January 2020 to in or around April 2022, the defendants allegedly profited at least approximately $114 million from their scheme.

“Securities fraud victimizes innocent investors and undermines the integrity of our public markets,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “As these charges demonstrate, the department will continue to prosecute those who defraud investors by spreading false and misleading information, including over social media, to line their own pockets.”

According to the indictment, the defendants collectively had over 1.5 million followers on Twitter to whom they allegedly disseminated false and misleading information about the securities that they pumped and dumped as part of the charged scheme. In addition to their Twitter presence, the defendants also allegedly ran an online community for individual stock traders called Atlas Trading, which defendants promoted as one of the largest, free online communities in the world for individual stock traders and which had a chatroom called Atlas Trading Discord. The defendants also allegedly used Atlas Trading Discord to disseminate false and misleading information about securities that they pumped and dumped as part of the charged scheme.

“We are committed to protecting the investing public from market manipulation schemes, regardless of how they are carried out,” said U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas (SDTX). “As some use advances in technology and social media to prey upon the public, our office will be on the cutting edge of prosecuting this area of fraud.”

According to the indictment, the defendants allegedly used the following aliases on Twitter and Discord to perpetuate the scheme:

Defendant

Twitter Handle

Discord Handle

Edward Constantinescu

@MrZackMorris

Zack Morris#0001

Perry “PJ” Matlock

@PJ_Matlock

PJ Matlock#0001

John Rybarczyk

@Ultra_Calls

Ultra#0374

Gary Deel

@notoriousalerts

Mystic Mac [Clover emoji] #7345

Stefan Hrvatin

@LadeBackk

Lade Backk#6083

Tom Cooperman

@ohheytommy

TOMMY COOPS #5323

Mitchell Hennessey

@Hugh_Henne

HOODHUGHBEAR [Bear emoji] #4034

Daniel Knight

@DipDeity

Dan, Deity of Dips#8114

As further alleged in the indictment, the defendants used their social media credibility to maximize their own profits at the expense of their followers, holding themselves out as skilled stock traders by posting pictures showcasing their profits and extravagant lifestyles and encouraging people to follow them on social media in order to share in their financial gains.

“Corporate fraud remains a priority for the FBI as it victimizes investors and erodes public confidence in the securities markets,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “The FBI and our law enforcement partners remain committed to identifying, investigating and pursuing those who seek to undermine the U.S. financial market and investors.”

All defendants are charged with one count of conspiracy to commit securities fraud. Additionally, Constantin is charged with three counts of securities fraud and one count of engaging in monetary transactions in property derived from specified unlawful activity; Matlock and Deel are both charged with five counts of securities fraud; Rybarczyk is charged with four counts of securities fraud; and Hrvatin, Cooperman and Hennessey are each charged with two counts of securities fraud.

The defendants made their initial court appearances yesterday. If convicted, each defendant faces a maximum penalty of 25 years in prison for conspiracy to commit securities fraud and each charged count of securities fraud. Constantin also faces a maximum penalty of 10 years in prison if convicted of engaging in unlawful monetary transactions.

The FBI Houston Field Office is investigating the case.

SDTX Assistant U.S. Attorney Thomas “Heyward” Carter III and Assistant Chief Scott Armstrong and Trial Attorney John J. Liolos of the Criminal Division’s Fraud are prosecuting the case.

If you believe you are a victim in this case, please contact the Fraud Section’s Victim Witness Unit toll-free at (888) 549-3945 or by email at victimassistance.fraud@usdoj.gov. You are also encouraged to visit our webpage for this case at https://www.justice.gov/criminal-vns/case/united-states-v-constantinescu-et-al.

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

A federal grand jury in the Southern District of Texas returned an indictment that was unsealed yesterday charging eight men with conspiracy to commit securities fraud for a long-running, social media-based “pump and dump” scheme.

According to court documents, Edward Constantinescu, aka Constantin, 38, of Montgomery, Texas; Perry “PJ” Matlock, 38, of The Woodlands, Texas; John Rybarczyk, 32, of Spring, Texas; Gary Deel, 28, of Beverly Hills, California; Stefan Hrvatin, 35, of Miami, Florida; Tom Cooperman, 34, of Beverly Hills, California; Mitchell Hennessey, 23, of Hoboken, New Jersey; and, Dan Knight, 23, of Houston, Texas, allegedly engaged in a wide-ranging securities fraud conspiracy in which the defendants used their extensive social media presence on Twitter and Discord to hype interest in particular securities by posting false and misleading information in order to “pump” the prices of those securities, while concealing their intent to later “dump” their shares by selling them at the artificially inflated prices. From in or around January 2020 to in or around April 2022, the defendants profited at least approximately $114 million from their scheme.

“Securities fraud victimizes innocent investors and undermines the integrity of our public markets,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “As these charges demonstrate, the department will continue to prosecute those who defraud investors by spreading false and misleading information, including over social media, to line their own pockets.”

According to the indictment, the defendants collectively had over 1.5 million followers on Twitter to whom they allegedly disseminated false and misleading information about the securities that they pumped and dumped as part of the charged scheme. In addition to their Twitter presence, the defendants also allegedly ran an online community for individual stock traders called Atlas Trading, which defendants promoted as one of the largest, free online communities in the world for individual stock traders and which had a chatroom called Atlas Trading Discord. The defendants also allegedly used Atlas Trading Discord to disseminate false and misleading information about securities that they pumped and dumped as part of the charged scheme.

“We are committed to protecting the investing public from market manipulation schemes, regardless of how they are carried out,” said U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas. “As some use advances in technology and social media to prey upon the public, our office will be on the cutting edge of prosecuting this area of fraud.”  

According to the indictment, the defendants allegedly used the following aliases on Twitter and Discord to perpetuate the scheme:

Defendant

Twitter Handle

Discord Handle

Edward Constantinescu

@MrZackMorris

Zack Morris#0001

Perry “PJ” Matlock

@PJ_Matlock

PJ Matlock#0001

John Rybarczyk

@Ultra_Calls

Ultra#0374

Gary Deel

@notoriousalerts

Mystic Mac [emoji of four-leaf clover]#7345

Stefan Hrvatin

@LadeBackk

Lade Backk#6083

Tom Cooperman

@ohheytommy

TOMMY COOPS #5323

Mitchell Hennessey

@Hugh_Henne

HOODHUGHBEAR[emoji of an ox]#4034

Daniel Knight

@DipDeity

Dan, Deity of Dips#8114

As further alleged in the indictment, the defendants used their social media credibility to maximize their own profits at the expense of their followers, holding themselves out as skilled stock traders by posting pictures showcasing their profits and extravagant lifestyles, and encouraging people to follow them on social media in order to share in their financial gains.

“Corporate fraud remains a priority for the FBI as it victimizes investors and erodes public confidence in the securities markets,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “The FBI and our law enforcement partners remain committed to identifying, investigating, and pursuing those who seek to undermine the U.S. financial market and investors.”

"Financial crimes like securities fraud may not be violent, but they certainly are not victimless," said Special Agent in Charge James Smith. "The eight individuals arrested today are accused of costing investors, specifically their social media followers who trusted them, millions of dollars by a ‘pump and dump’ market manipulation scheme they allegedly carried out on popular social media platforms. As the lead agency investigating corporate fraud, the FBI was able to uncover their alleged manipulative activity and expose their coordinated pattern of securities fraud."

All defendants are charged with one count of conspiracy to commit securities fraud. Additionally, Constantin is charged with three counts of securities fraud and one count of engaging in monetary transactions in property derived from specified unlawful activity; Matlock and Deel are both charged with five counts of securities fraud; Rybarczyk is charged with four counts of securities fraud; and Hrvatin, Cooperman, and Hennessey are each charged with two counts of securities fraud.

The defendants made their initial court appearances yesterday. If convicted, each defendant faces a maximum penalty of 25 years in prison for conspiracy to commit securities fraud and each charged count of securities fraud. Constantin also faces a maximum penalty of 10 years in prison if convicted of engaging in unlawful monetary transactions. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The FBI Houston Field Office is investigating the case.

Assistant Chief Scott Armstrong and Trial Attorney John J. Liolos of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Thomas “Heyward” Carter III for the Southern District of Texas are prosecuting the case.

If you believe you are a victim in this case, please contact the Fraud Section’s Victim Witness Unit toll-free at (888) 549-3945 or by email at victimassistance.fraud@usdoj.gov. You are also encouraged to visit our webpage for this case at https://www.justice.gov/criminal-vns/case/united-states-v-constantinescu-et-al.

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

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

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

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

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

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

“The individual behind this cyberstalking case was well-versed in social media. He not only stalked and terrorized his young victims through social media platforms, but he also victimized them even further by threatening to send compromising content of them to their family and friends,” said Special Agent in Charge James Smith of the FBI. “These sinister actions cannot be undone and will forever affect the victims. The FBI’s priority in protecting our teens and young adults from predators couldn't be clearer through this investigation. We want to thank our local law enforcement partners for their assistance in this case.”

U.S. District Judge Andrew Hanen accepted the plea and set sentencing for May 8, 2023. At that time, Bohac faces a minimum of five and up to 20 years for the receipt of child pornography as well up to five years for cyberstalking.

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

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

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

As a temporary measure due to COVID-19 concerns, service on the United States Attorney in civil cases shall be via email and US mail as follows: A copy of any summons, complaint or emergency motion shall be emailed to USATXS.CivilNotice@usdoj.gov.

A paper copy shall be mailed to the Civil Process Clerk, United States Attorney’s Office, 1000 Louisiana St., Suite 2300, Houston, Texas 77002. Hand delivery may not be accepted.

Please do not use this e-mail box for general pleadings or correspondence. Service will not be deemed effected until you receive an e-mail acknowledgement from our office.

This emergency accommodation will expire on June 30, 2023. In addition to serving the United States Attorney, the Social Security Administration should be served in 405(g) disability cases at ogc.dallas.sdtx@ssa.gov.

Alamdar S. Hamdani
United States Attorney

GALVESTON, Texas – A 65-year-old has been taken into custody on violation of captain of the port order, making a false statement, obstruction of a proper compliance inspection and forgery of ships papers, announced U.S. Attorney Alamdar S. Hamdani.

Gordon Johnson is expected to appear for his initial appearance before U.S. Magistrate Judge Andrew Edison at 11 a.m. tomorrow.   

The indictment was returned Dec. 1, which was unsealed upon his arrest this morning.  

Johnson allegedly operated the MV SPANISH PRINCESS without complying with an order of the highest ranking U.S. Coast Guard (USCG) officer in the Houston-Galveston area. The indictment further alleges he made false statements to USCG personnel in which he claimed not to have paying passengers on his ship and instructed passengers to falsely tell personnel they were not paying passengers. He further forged the signature of the seller of the vessel on a USCG bill of sale, according to the charges. 

If convicted, Johnson faces up to 10 years in prison as well as a possible $250,000 maximum fine. He could also be ordered to forfeiture the MV SPANISH PRINCESS. 

“The Coast Guard Investigative Service (CGIS) is firmly committed to partnering with law enforcement agencies to identify and stop those who pose a hazard to the boating public,” said Special Agent in Charge Brian Jeanfreau, CGIS Gulf Region. “Ensuring mariners are fully qualified to safely operate passenger vessels is of upmost importance to the U.S. Coast Guard.”

The CGIS conducted the investigation. Assistant U.S. Attorney Adam L. Goldman prosecuted the case with assistance from law clerk Kathleen Whitmore.

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 – Chief U.S. District Judge Randy Crane has sworn in Alamdar S. Hamdani as the 24th presidentially-appointed U.S. Attorney (USA) for the Southern District of Texas (SDTX). He began his duties immediately. As the USA for the SDTX, Hamdani is the chief law enforcement officer responsible for prosecuting and defending the interests of the United States in the seventh largest district in the nation.

He is the first Asian American to hold such office in the SDTX.

Hamdani took the oath of office at 10 a.m. today before an audience including Judge Crane’s staff, federal court personnel, federal public defender and Assistant U.S. Attorneys and staff. Calling it an honor to administer the oath to Hamdani, Judge Crane mentioned the sacrifices of public service and that serving as USA commands respect. He further explained the shared responsibility of moving cases through the process and working together to ensure people are fairly and efficiently treated in our justice system.

Jennifer B. Lowery, who had served as the acting, then court-appointed USA since the departure of former USA Ryan K. Patrick, commented on Hamdani’s background and how the office is happy to have him. She noted that Hamdani said he was “excited to get started.”

Hamdani thanked the previous leadership and described wanting to carry on the traditions he had learned. He spoke of former USA Don DeGabrielle, who spoke at his AUSA orientation almost 15 years ago, and how he taught him about the high standards expected of a federal prosecutor. 

Hamdani also spoke of the last eight years as an AUSA with the SDTX as a “dream come true.” He explained that just to represent the United States is one of the greatest things of his career. He told the audience of how he came to this country as an immigrant from England almost 40 years ago and cited the beauty of being a part of this great country.

In swearing in Hamdani today, Judge Crane noted the job would not be an easy one, stating that the SDTX is a large district which carried a tremendous responsibility. He thanked Hamdani for traveling to the McAllen office for the oath and that he was looking forward to working with him.

Information about a possible media availability will be provided at a later date.

President Biden nominated Hamdani to serve as USA for this district Nov. 14, upon the recommendation of U.S. Senators John Cornyn and Ted Cruz. The full Senate unanimously confirmed his appointment Dec. 6.   

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

Prior to his government service, Hamdani was a partner at the law firm of Hamdani & Simon LLP in Texas from 2005 to 2008 where he litigated corporate disputes and civil rights matters. In 2003, he helped form the South Asian Bar Association of North America, holding various leadership positions in the organization, including president from 2007 to 2008. From 2001 to 2005, Hamdani was an associate attorney in the Houston office of the law firm Winstead P.C. 

During his tenure as an AUSA with the SDTX, Hamdani was also an adjunct professor at the University of Houston Law Center.

Hamdani received his J.D. from the University of Houston Law Center in 1999 and his B.B.A. from the University of Texas at Austin in 1993. 

The SDTX, 7th largest in terms of personnel, typically prosecutes more cases against more defendants than most other USAOs nationwide, representing 43 counties and nine million people and covering 44,000 square miles. This district currently comprises seven U.S. District Court divisions with federal district courts in Houston, Galveston, Victoria, Corpus Christi, Brownsville, McAllen and Laredo. The U.S. Attorney's office, headquartered in Houston, has branch offices in all seven divisions.

McALLEN, Texas – A 19-year-old United States citizen residing in Reynosa, Mexico, has been ordered to federal prison for drug trafficking, announced U.S. Attorney Jennifer B. Lowery.

Cesar Morales Jr. pleaded guilty Sept. 14.

Today, U.S. District Judge Micaela Alvarez ordered him to serve a 120-month sentence. At the hearing, the court heard argument that although Morales lacked any prior convictions, his role of a transporter of 21 kilograms of cocaine merited the 10-year sentence.

Morales attempted to make entry into the United States through the Hidalgo Port of Entry in Hidalgo on July 15. Morales was the driver and sole occupant of a vehicle.

During secondary inspection, law enforcement discovered irregularities in the fuel tank. Authorities subsequently found 20 packages of cocaine inside that tank.

Morales subsequently admitted he was importing the cocaine into the United States in exchange for payment.

Homeland Security Investigations and Customs and Border Protection conducted the investigation. Assistant U.S. Attorney Devin V. Walker prosecuted the case.

HOUSTON – A 28-year-old Houston man remains in custody pending trial on federal hate crime charges allegedly motivated by gender identity and sexual orientation, announced U.S. Attorney Jennifer B. Lowery.

The charges allege Salih Alhemoud used Grindr, a social media application for members of the LGBTQ community, to set up a date with a transgender victim whom he subsequently assaulted.

According to court records, authorities are also investigating a series of other similar incidents they believe Alhemoud committed this past summer.

A photo of Alhemoud is attached. If you believe you are a victim, or have any information regarding any such potential victims, please contact the FBI Houston Field Office at 713-693-5000.

Alhemoud is charged with committing a hate crime, kidnapping, and possessing a firearm during a crime of violence. Court records allege Alhemoud used Grindr to set up a date on Aug. 29 with his transgender victim at her apartment. Upon arrival, he allegedly pulled out a gun and demanded her money and property. She was unable to produce any cash, so Alhemoud hit her with his pistol and stomped her on the face and chest, according to the charges. He also allegedly told her she was going to die and made statements such as “my religion considers you a demon,” and that she “was a demon like the others, all you trans people,” among other homosexual and transgender slurs.  

A federal grand jury returned the three-count indictment Oct. 26. At a detention hearing following his arrest, he was found to be a danger to the community and ordered into custody pending further criminal proceedings. If convicted, he faces up to life in prison.

The FBI and Houston Police Department are jointly conducting this investigation. Assistant U.S. Attorneys Sharad Khandelwal and Christine Lu 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.

CORPUS CHRISTI, Texas – A 35-year-old San Benito man has been ordered to federal prison for conspiring to transport illegal aliens within the United States, announced U.S. Attorney Jennifer B. Lowery.

Elias Lopez III pleaded guilty July 26 for his role in a conspiracy to transport illegal aliens from South Texas through the Border Patrol checkpoint near Sarita.

Today U.S. District Judge Nelva Gonzales Ramos sentenced Lopez to 33 months to be immediately followed by two years of supervised release. 

On Dec. 10, 2021, authorities discovered 24 undocumented aliens hidden among a load of watermelon in a commercial trailer at the checkpoint near Sarita.

The investigation revealed some had crossed into the United States a few weeks prior and had been kept in a “stash house” until the arrangement of transportation through the checkpoint.

Two women identified Lopez and his wife as the owners and caretakers of the stash house. They also gave information about the house and where it was located. The women stayed in the house with Lopez and his wife for approximately three weeks while waiting to be transported.

Earlier in the evening on Dec. 10, Lopez drove them from the house to a dark, brushy lot where the tractor trailer was waiting. The trailer doors were open and the lights were on. The women were loaded into the trailer and told to hide among the pallets of watermelon. The trailer did not stop again until it reached the checkpoint.

Lopez’s wife was also charged and pled guilty to the offense. She is set to be sentenced in March 2023. The driver of the tractor trailer was also charged with the offense, and he is currently a fugitive. 

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

Border Patrol and Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Ashley Martin prosecuted the case.

HOUSTON – A 43 year-old Houston resident has been sent to prison for robbery of a Family Dollar store, announced U.S. Attorney Jennifer B. Lowery.

Robert Trussell pleaded guilty Aug. 10.

Today, U.S. District Judge Keith Ellison ordered Trussell to serve 121 months in federal prison to be immediately followed by three years of supervised release. In handing down the sentence, the court found Trussell to be a career offender due to his convictions for three previous robberies.

At the time of his plea, Trussell admitted to committing the robbery of a Family Dollar store on Aug. 30, 2019. He acted like a customer before he passed the victim a threatening note demanding money. The victim recalled Trussell showing her a firearm in his waistband.

Authorities identified his vehicle and conducted a traffic stop and took him into custody. At the time of his arrest, law enforcement found a firearm on the passenger in the vehicle Trussell was driving. 

Trussell 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 Bureau of Alcohol Tobacco, Firearms and Explosives and Houston Police Department conducted the investigation. Assistant U.S. Attorney Heather Winter prosecuted the case.

This case was prosecuted as part of the joint federal, state and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. 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. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

HOUSTON – Three locals associated with Jesus Survives Ministries have admitted to conspiracy to commit bank and wire fraud, announced U.S. Attorney Jennifer B. Lowery. 

William Dexter Lucas aka Bill Lucas, 60, and Deborah Jean Lucas, 64, both of Bryan, pleaded guilty today while Brian Corpian, 45, Houston, entered his plea Dec. 2.  

All three have admitted to making false statements and using false documents regarding the church to fraudulently obtain loan proceeds. Jesus Survives Ministries is a defunct church in which all three claimed to be pastors. Bill Lucas claimed to be lead pastor. 

For almost the last decade there were no church services or pastoral services through Jesus Survives Ministries. Since 2014, the three made false statements regarding their payroll at the church in submitting car loan applications for purchases of cars on which they had no intent of making payments. Both Bill and Deborah Lucas were able to obtain cars through these false applications. 

Within days following the enactment of Coronavirus Aid, Relief and Economic Security (CARES) Act, Bill Lucas applied for multiple Economic Injury Disaster Loan (EIDL) Program and Paycheck Protection Program (PPP) loans from numerous banks. In them, he made false statements and provided false documents regarding Jesus Survives Ministries. Bill Lucas falsely claimed that Jesus Survives Ministries had gross revenues of almost a million dollars in 2019. Deborah Lucas and Brian Corpian signed some of the false documents and called bank employees and the Small Business Administration regarding the status of applications.   

When Bill Lucas became frustrated with bank employees’ failure to review and fund the loans quickly, he would send accusatory and intimidating text messages and emails; including, “This is war!!!!!” “I curse you, your bank and you[r] whole family,” and “You extremists think I am playing with you. You started a war and I guarantee you that you[‘re] not walking away unscathed.” Bill Lucas also posted a diatribe on the Jesus Survives Ministries website calling one of the banks, “Minions of Satan” and sent a bank employee a photograph of the bank employee’s family, indicating Bill knew the names of the bank employee’s wife and son. 

The intended loss amount totals hundreds of thousands of dollars. One of the banks approved a PPP loan of $50,000 for Jesus Survives Ministries. Once they received the fraudulent proceeds, Deborah Lucas and Bill Lucas moved the money into another bank account and went on vacation to South Carolina using fraud proceeds.         

The CARES Act is a federal law enacted March 27, 2020, to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. The CARES Act included the PPP and EIDL programs for either forgivable loans or low-interest financing for small businesses. 

U.S. District Judge Charles Eskridge will impose sentencing May 11, 2023. At that time, all three face up and face up to 30 years in prison and a possible $1 million fine. 

They were permitted to remain on bond pending that hearing.

Homeland Security Investigations, Treasury Inspector General for Tax Administration, Small Business Administration and Federal Deposit Insurance Corporation - Inspector General conducted the investigation. Assistant U.S. Attorneys Zahra Jivani Fenelon, Kate Suh and Kristine Rollinson are prosecuting the case. 

CORPUS CHRISTI, Texas – A 52-year-old Corpus Christi resident has been ordered to federal prison following his conviction of possession with intent to distribute more than 50 grams of a mixture or substance containing meth, announced U.S. Attorney Jennifer B. Lowery.

Brian Edwards pleaded guilty July 26.

Today, U.S. District Judge Nelva Gonzales Ramos ordered Edwards to serve 87 months in federal prison followed by four years of supervised release. At the hearing, the court heard additional evidence regarding Edwards’s criminal history which includes a prior federal conviction for felon in possession of a firearm as well as an aggravated assault on a peace officer. She also heard that he is a prior gang member. In handing down the sentence, the court noted his criminal history as well as the gun found in the stolen vehicle he was driving.

On Dec. 24, 2021, law enforcement observed Edwards exit a vehicle that was reported stolen and enter a store. Further investigation revealed he was in possession of approximately 57 grams of a substance containing meth.

A search of the vehicle also revealed a firearm in the driver side door.

Edwards 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 Corpus Christi Police Department. Assistant U.S. Attorney Liesel Roscher prosecuted the case.

HOUSTON – The Department of Justice has announced the unsealing of an 11-count indictment charging 12 individuals in a long-running, multi-faceted conspiracy to monopolize the transmigrante forwarding industry in the Los Indios border region near Harlingen and Brownsville.

Transmigrantes are individuals who transport used vehicles and other goods from the United States through Mexico for resale in Central America. Transmigrante forwarding agencies are businesses that provide services to transmigrante clients, including helping those clients complete the customs paperwork required to export vehicles into Mexico.

According to the indictment, Carlos Favian Martinez, 36, Mission; Marco Antonio Medina, 32, Rigoberto Brown, 38, and Miguel Hipolito Caballero Aupart, 70, all of Brownsville; Pedro Antonio Calvillo Hernandez, 47, Tamaulipas, Mexico; Roberto Garcia Villareal, 56, San Benito; Sandra Guerra Medina, 68, Rancho Viejo; and Mireya Miranda, 56, La Feria, conspired to fix prices and allocate the market for transmigrante services in violation of Section 1 of the Sherman Act. They also allegedly conspired to monopolize the same market in violation of Section 2 of the Sherman Act. The indictment alleges they implemented price-fixing agreements and created a centralized entity known as “The Pool” to collect and divide revenues among the conspirators.

Transmigrante agency owners and industry participants who refused to charge the fixed prices, pay into the pool or pay an extortion tax were subjected to threats, intimidation and acts of violence against themselves and their families, employees, associates and businesses, according to the charges.

Martinez, Medina, Calvillo and Garcia, along with Diego Ceballos-Soto, 48, Matamoros, Mexico, and Carlos Yzaguirre, 63, Mission, were also charged with one count of conspiracy to interfere with commerce by extortion. The indictment alleges several violent acts perpetrated against transmigrante industry participants and individuals closely associated with them who disrupted the scheme or refused to pay the extortion fees. Martinez, Ceballos-Soto and Yzaguirre were also charged with one count of interference in commerce by extortion. They allegedly forced one transmigrante agency owner to pay more than $80,000 for operating outside of the Pool and failing to pay the extortion tax.

Finally, Martinez, Medina, Calvillo, Ceballos-Soto and Yzaguirre, along with Juan Hector Ramirez Avila, 32, and Jose de Jesus Tapia Fernandez, 44, both of Brownsville, were charged with money laundering conspiracy and substantive counts of money laundering related to the underlying scheme.

“The indictment charges that defendants monopolized an industry through horrific violence and threats of violence,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “The department will use all the tools at its disposal – including Section 2 of the Sherman Act – to target anticompetitive conduct that undermines our country’s economic vitality and freedom.”

“As alleged, this criminal organization committed heinous acts of violence against those who would not participate in its illegal activities,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “Together with our partners, we are committed to dismantling violent enterprises that victimize individuals simply trying to earn an honest living.”

“The charges announced today demonstrate our office’s commitment to protecting Texans from violent crime and exploitive business practices,” said U.S. Attorney Jennifer Lowery. “Working with our partners across the government, we will continue to investigate and prosecute violent criminals who prey on our communities.”

“This case is further proof that organized crime is active and negatively impacting our communities,” said Acting Special Agent in Charge Craig Larrabee of Homeland Security Investigations (HSI) San Antonio. “These violent criminal organizations monopolized the transmigrante industry by using acts of violence, threats and even extortion. HSI employs a full range of law enforcement techniques and cross-border authorities to combat this egregious criminal activity. HSI and its law enforcement partners are committed to dismantling organized crime by eliminating their corrupt influence in our communities and protecting our nation’s borders.”

“Today’s actions are the result of the FBI’s continued collaborative efforts with our law enforcement partners in this important investigation,” said Special Agent in Charge Oliver E. Rich Jr. of the FBI San Antonio Division. “The FBI remains dedicated to protecting American communities from threats of violence and economic crime.”

HSI and the FBI are investigating 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 36-year-old Sugar Land resident has been taken into custody on charges he fraudulently obtained and laundered more than $500,000, announced U.S. Attorney Jennifer B. Lowery.

Xiaofei Chen is set to make his initial appearance before U.S. Magistrate Judge Yvonne Y. Ho at 2 p.m.

The 10-count indictment, returned Nov. 30 and unsealed upon his arrest today, alleges Chen used a fraudulent power of attorney to gain access to the victim’s checking account. Chen then allegedly arranged for $520,000 to be fraudulently wired out of the account.

According to the charges, Chen converted the fraud proceeds into Bitcoin before moving it across multiple cryptocurrency exchanges to conceal his scheme. In addition, Chen allegedly used the victim’s identity to access and open accounts. The indictment further alleges Chen then used the stolen money to fund his lifestyle and luxury purchases, including two brand new vehicles.  

Chen is charged with multiple counts of wire fraud, money laundering, engaging in monetary transactions in property derived from specified unlawful activity and aggravated identify theft.

If convicted, Chen faces up to 30, 20 and 10 years, respectively, for each of the counts of wire fraud, money laundering and engaging in monetary transactions using the proceeds of his crimes. Each count of aggravated identity theft carries a mandatory two years which must be served consecutively to any other sentence imposed.

The FBI conducted the investigation. Assistant U.S. Attorneys Christian Latham and Belinda Beek 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.

McALLEN, Texas – A 34-year-old man has admitted to receipt of child pornography, announced U.S. Attorney Jennifer B. Lowery.

As part of his plea, Esteban Luna-Caudillo admitted to receiving files containing child pornography from May 10, 2019, through May 18, 2022, by utilizing an online-based cloud storage account. Luna-Caudillo also admitted that a portion of the files he received depicted prepubescent children engaged in sexually-explicit conduct.

At the time of his arrest, Luna-Caudillo provided his phone to law enforcement. Within the phone, federal agents found over 100 videos of minor children who ranged in age from approximately three to 12 years old engaged in illicit sexual activity with adults.

U.S. District Judge Micaela Alvarez has set sentencing for Feb. 16, 2023. At that time, Luna-Caudillo faces a mandatory minimum of five and up to 20 years in federal prison.

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

Homeland Security Investigations conducted the investigation.

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

McALLEN, Texas – A 26-year-old Corpus Christi man has been ordered to federal prison following his conviction of conspiracy to possess with intent to distribute meth, announced U.S. Attorney Jennifer B. Lowery.

Gabriel Anthony Pena pleaded guilty Dec. 1, 2021.

Today, U.S. District Judge Micaela Alvarez sentenced Pena to serve 260 months in federal prison followed by five years of supervised release. In determining the sentence, the court found that Pena’s role was that of an organizer or leader, as he had recruited another to transport narcotics from the Rio Grande Valley to Corpus Christi. The court noted the extent and lengthy duration of the scheme which involved at least 28 kilograms of meth seized over the course of multiple incidents, two of which involving the presence of a firearm. Judge Alvarez also emphasized the need to protect the community.

At the time of his plea, Pena admitted that between March and June 2021, he coordinated multiple smuggling attempts by recruiting co-conspirators to transport narcotics from the southern border to the Corpus Christi area.

In March 2021, a co-conspirator attempted to pass through the Falfurrias checkpoint with 24 kilograms of meth hidden between the frame and taillights of a Volkswagen Tiguan. At that time, authorities seized the narcotics and later determined that she had been recruited by Pena to transport through the checkpoint.

In April and June of 2021, Pena was stopped in Corpus Christi and found to be in possession of over 400 grams of the narcotic along with a firearm in his vehicle. Later, law enforcement executed a search warrant at his residence and discovered an additional 1.7 kilograms of meth.

Investigation revealed that the drugs being transported by the co-conspirator were intended to be distributed throughout the Corpus Christi area.

Pena 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. Attorneys Lee Fry and Matthew Redavid prosecuted the case.

HOUSTON – A 47-year-old Colorado man has been sent to federal prison following his conviction of stalking and threatening a woman with releasing sexually-explicit images unless she moved with him across the country, announced U.S. Attorney Jennifer B. Lowery.

Moses Cano pleaded guilty Sept. 20.

Today, U.S. District Judge Jeffrey V. Brown ordered Cano to serve 46 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the court heard how the victim was still emotionally distraught about Cano, has changed how she interacts with others and has moved. Judge Brown heard that the victim chose not to be present at the hearing so not to give Cano the satisfaction of seeing her again. In handing down the sentence, the court noted Cano, while on supervised release, would not be able to contact the victim directly or indirectly or contact any of her friends or family that he knows based on their relationship.

Cano and the victim dated for a brief amount of time. At the end of that relationship, Cano made threats to her if she did not agree to come to Colorado with him. The victim refused. In retaliation, he then sent sexually-explicit images of the victim to her place of employment and several of her friends.

At the time of his plea, he admitted he took over her Facebook account and used it to send the images and other messages to her contacts.

In distress, the victim contacted authorities.

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

The FBI conducted the investigation with the assistance of Matagorda County Sheriff’s Office. Assistant U.S. Attorney Sherri L. Zack prosecuted the case.

A Texas married couple was sentenced today for a $1 million Medicare fraud scheme, including violations of the federal Anti-Kickback Statute.

Lindell King, 53, of Missouri City, was sentenced to 60 months in prison. Ynedra Diggs, 45, also of Missouri City, was sentenced to 70 months in prison. King and Diggs were also ordered to pay $537,992.55 in restitution.

On April 4, King and Diggs were convicted after trial in the Southern District of Texas of conspiracy to defraud the United States and to pay and receive health care kickbacks, and multiple substantive violations of the Anti-Kickback Statute.

According to court documents and evidence presented at trial, both Diggs and King were patient recruiters who owned and operated group homes in which Medicare beneficiaries lived. In exchange for sending their group home residents to the Behavioral Medicine of Houston (BMH), a community mental health center that purported to provide partial hospitalization services, BMH paid Diggs, King, and other patient recruiters illegal kickbacks in cash and by check, often concealed as payment for “transportation” or other sham services. During the course of the conspiracy, BMH fraudulently billed approximately $1 million to Medicare in claims related to patients it received in exchange for the kickbacks paid to Diggs and King.

Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Jennifer B. Lowery for the Southern District of Texas; Acting Special Agent in Charge Jason Meadows of the Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Region; Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division; Special Agent in Charge James H. Smith III of the FBI Houston Field Office; and Chief William Marlowe of the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU) made the announcement.

The HHS-OIG, FBI, and MFCU investigated the case.

Trial Attorney Monica Cooper and Acting Assistant Chief Brynn Schiess 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 24 federal districts, has charged more than 4,200 defendants who collectively have billed the Medicare program for more than $19 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.

BROWNSVILLE, Texas – A 36-year-old man has been ordered to federal prison following his conviction of illegal re-entry into the United States, announced U.S. Attorney Jennifer B. Lowery.

Raul Catalino Vasquez-Estrada, Ciudad Altamirano, Guerrero, Mexico, pleaded guilty May 4.

Today, U.S. District Judge Fernando Rodriguez Jr. ordered Vasquez-Estrada to serve 50 months in federal prison. The court also ordered him to serve an additional seven months for violating his conditions of supervised release. Not a U.S. citizen, Vasquez-Estrada is again expected to face removal proceedings following his imprisonment. At the hearing, the court heard additional evidence of Vazquez-Estrada’s previous criminal history.

On March 1, authorities arrested Raul Catalino Estrada-Vasquez approximately 2.9 miles west of the Gateway Port of Entry in Brownsville. Estrada-Vasquez did not possess any documents that allowed him to be or remain in the United States legally. 

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

Border Patrol conducted the investigation. Assistant U.S. Attorney David Coronado prosecuted the case.

McALLEN, Texas – A 26-year-old man residing in Hidalgo is set to appear in federal court on charges of coercion of a minor and production of child pornography, announced U.S. Attorney Jennifer B. Lowery.

Rogelio Pruneda III is set to appear before U.S. Magistrate Judge Juan F. Alanis at 2 p.m.

Originally charged by criminal complaint, a federal grand jury returned the two-count indictment Nov. 15.  

According to the charges, Pruneda began communicating via social media with a minor female, offering money and THC vape cartridges in exchange for sexual acts. Pruneda allegedly convinced the minor female to meet locally, at which time Pruneda created two videos of the minor female performing oral sex on him.

The charges allege Pruneda exchanged messages recognizing the minor female’s age and discussed sexual activity with the minor female. Pruneda allegedly met up with the female on two more occasions at a family-owned auto shop and a residence where he engaged in sexual intercourse with the minor. In one instance Pruneda brought THC cartridges in exchange for sex, according to the charges.

Shortly thereafter, law enforcement took Pruneda into custody.

At the time of his detention hearing, the court found him to be a danger to community and ordered held in custody pending future criminal proceedings.

The FBI conducted the investigation.

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

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 tax preparer has admitted to willfully preparing a false joint 2017 individual income tax return, announced U.S. Attorney Jennifer B. Lowery.

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

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

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

U.S. District Judge Keith P. Ellison will impose sentencing Feb. 17. At that time, Mahinga faces up to three years in federal prison and a possible $250,000 maximum fine.

IRS - Criminal Investigation conducted the investigation. Assistant U.S. Attorney Charles J. Escher is prosecuting the case.