Southern District of Texas

CORPUS CHRISTI, Texas – A 33-year-old Alice resident has been ordered to federal prison for possession with intent to distribute 112 grams of meth, announced Acting U.S. Attorney Jennifer B. Lowery.

Jose Francisco Arredondo aka Cocaine Pepe pleaded guilty Aug. 19.

Today, U.S. District Judge Nelva Gonzales Ramos ordered him to serve a 151-month sentence to be immediately followed by five years of supervised release. At the hearing, the court heard additional evidence that detailed Arredondo’s life of crime and how he terrorized the Alice and Jim Wells County community – 28 arrests and was one of the main sources of meth, cocaine, steroids and more in Alice. In handing down the sentence, Judge Ramos noted Arredondo was consistently arrested multiple times with guns and drugs and that previous jail sentences did not seem to dissuade him from criminality.

On April 9, law enforcement arrived at a local hotel in response to a potential disturbance. They soon observed a vehicle with its lights on and engine running. Arredondo was driving. As they approached, they immediately noticed a firearm in the center console. Knowing he was a convicted felon, authorities conducted a thorough search of the vehicle.

They ultimately uncovered over $11,000 as well as four bags of narcotics, one with 112 grams of meth, two containing a total of 56 grams of cocaine and another with 13 grams of marijuana. Law enforcement also discovered a digital scale, many lottery tickets, and a defaced firearm.

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

The Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; Jim Wells County Sheriff’s Office and the Alice Police Department conducted the investigation. Assistant U.S. Attorney Christopher Marin prosecuted the case.

HOUSTON - A 49-year-old local physician has agreed to pay $523,331 to settle allegations he submitted false claims for the placement of electro-acupuncture devices and for making false statements when applying for a loan from the Paycheck Protection Program (PPP), announced Acting U.S. Attorney Jennifer B. Lowery.  

Dr. Emad Bishai is an anesthesiologist and pain management physician who practices in The Woodlands. Woodlands Pain Institute PLLC is his primary practice entity. 

From July 12, 2017, to May 10, 2019, Bishai billed the Medicare and TRICARE programs for the surgical implantation of neurostimulator electrodes. These are invasive procedures usually requiring use of an operating room for which Medicare pays thousands of dollars. Neither Bishai nor his staff performed this surgical procedure. Instead, patients received devices used for electro-acupuncture. This only involved inserting needles into patients’ ears with the neurostimulator taped behind them with an adhesive. 

In addition to the financial settlement, Bishai and Woodlands Pain Institute PLLC have agreed to a seven-year-period of exclusion from participation in any federal health care programs.

To date, the Southern District of Texas has resolved five similar cases, which included settlements from a Katy anesthesiologist, a Houston pain doctor, a Rockport chiropractor, a Houston chiropractor, and a Laredo pain doctor.

In addition to his false medical claims, Bishai allegedly made false statements when submitting an application to the PPP program in May 2020 on behalf of Woodlands Pain Institute PLLC. Specifically, the application included a question whether the applicant (or any individual owning more than 20% equity) is subject to an indictment, criminal information, arraignment or other means by which formal criminal charges are brought in any jurisdiction.

Bishai is 100% owner of Woodlands Pain Institute PLLC. When filling out the application, he falsely checked the box marked “No” and initialed his name beneath the question. However, at the time of the application, Bishai was facing criminal charges in Montgomery County arising from his practice of prescribing opioid medicines. As a result of his fraudulent application, Bishai received a loan to which he was not entitled. 

The Department of Health and Human Services – Office of Inspector General and Defense Criminal Investigation Service conducted the investigation with the assistance of 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.

McALLEN, Texas – A 38-year-old McAllen resident has pleaded guilty to a criminal information charging him with bribery and bankruptcy fraud, announced Acting U.S. Attorney Jennifer B. Lowery.

Omar X. Romero admitted that in 2018 he utilized a cellular phone to communicate with other public officials individuals regarding a scheme to sell a water tank to Agua Special Utility District (SUD) and compensation to be paid in consideration for board votes.

Romero also admitted he was appointed to serve as the chief restructuring officer of Hidalgo County Emergency Services Foundation on Nov. 4, 2019, in connection with their bankruptcy proceedings. While serving in that role, he obtained at least $50,000 from the debtor’s estate that the bankruptcy court had not authorized or earned as compensation for his services.

U.S. District Judge Ricardo H. Hinojosa will impose sentencing Jan. 20, 2022. At that time, Romero faces up to five years in federal prison on each count of conviction. He was permitted to remain on bond pending that hearing.

The FBI conducted the investigation with the assistance of the Texas Department of Insurance and McAllen Police Department. Assistant U.S. Attorney (AUSA) Roberto Lopez is prosecuting the criminal case. AUSA Richard Kincheloe represents the government in the related bankruptcy proceedings.

HOUSTON – A civil action has been filed against MC Tubular Products and Metal One America for failing to comply with a federal summons, announced Acting U.S. Attorney Jennifer B. Lowery.

MC Tubular Products is a supplier of industrial pipe products used in the oil and gas industry. The company is a subsidiary of Metal One Holdings America, which sources materials, handles logistics and provides import/export management, trade finance, credit and risk management.

MC Tubular Products allegedly made misrepresentations to avoid paying more than $10 million in antidumping duties on metal pipe imported from Japan. As part of the investigation, they were issued a summons compelling the companies to produce documents which are expected to show whether either acted improperly, according to the filing in federal court today.  

However, the allegations indicate they did not comply and failed to produce the required documents by the deadline. 

Homeland Security Investigations and Customs and Border Protection are conducting the investigation.

Assistant U.S. Attorney Rick Kincheloe is handling the matter in coordination with the Civil Division’s National Courts Section.

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

HOUSTON – Three individuals have admitted to their participation in a scheme to fraudulently obtain and launder millions of dollars in forgivable Paycheck Protection Program (PPP) loans. The Small Business Administration (SBA) guarantees PPP loans  under the Coronavirus Aid, Relief, and Economic Security Act.

Richard Reuth, 58, Spring, entered his plea today, while Raheel Malik, 41, Sugar Land, and Siddiq Azeemuddin, 42, Naperville, Illinois, pleaded guilty yesterday. During their respective pleas, they admitted to engaging in a conspiracy to defraud the SBA and certain SBA-approved PPP lenders by submitting false and fraudulent PPP loan applications. Azeemuddin and Malik also conspired to launder over $3 million in PPP loan funds through Azeemuddin’s business, Fascare International Inc. dba Almeda Discount Store.

As part of the scheme, Azeemuddin instructed Malik to fill out blank checks from companies that received PPP loans by putting the names of fake employees in the payee line. At Azeemuddin’s direction, Malik then cashed the checks at a financial institution and transported the cash to other members of the conspiracy. In exchange for laundering the funds, Azeemuddin received 1 to 2% of each check cashed.

For his part, Reuth admitted to conspiring to submit PPP loan applications on behalf of companies that he knew were inactive and did not have any employees. In exchange for each false and fraudulent PPP loan application, Reuth received approximately $50,000.

Azeemuddin pleaded guilty to one count of conspiracy to commit wire fraud and one count of money laundering, while Malik admitted to one count of conspiracy to commit wire fraud and money laundering. Azeemuddin and Malik face up to 40 and five years in federal prison, respectively. Reuth entered his plea to one count of conspiracy to commit wire fraud and could receive a maximum of 20 years in prison. All are set for sentencing March 7, 2022.

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

Assistant U.S. Attorneys Rodolfo Ramirez and Kristine Rollinson are prosecuting the case along with Trial Attorneys Louis Manzo and Della Sentilles of the Criminal Division’s Fraud Section.

On May 17, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit the Combatting Coronavirus Fraud page.  

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

HOUSTON – A fifth individual has surrendered to authorities in relation to a multi-year, multi-million dollar money laundering conspiracy, announced Acting U.S. Attorney Jennifer B. Lowery.  

Michael Dean Richards, 33, Frisco, is expected to appear for his initial appearance before U.S. Magistrate Judge Frances Stacy at 10 a.m. today. Authorities arrested Branden Denver Richards, 29, and Douglas Paul Michael Davis, 27, both residents of the Dallas-Fort Worth Metroplex, last week. They are also set to appear this morning. Vinh Quang Phan, 56, and Diana Le Phan, 44, both of Houston, are scheduled to appear in federal court next week.

A federal grand jury returned an 11-count superseding indictment Oct. 6 charging all five with conspiring to launder monetary instruments and conspiring to engage in monetary transactions in criminally derived property. The Phans are additionally charged with six counts of engaging in monetary transactions in criminally derived property, operation of an unlicensed money transmitting business and conspiracy to do so. Diana Le Phan has an additional charge of laundering monetary instruments.

According to the indictment, the Phans operated an unlicensed money transmitting business that transmitted funds received in the form of U.S. currency aka bulk cash. At least some of this money, including bulk cash received from Michael and Brandon Richards and Davis, allegedly constituted proceeds from the trafficking, distribution and sale of controlled substances. 

During the course of the approximately 21-month conspiracy, the unlicensed money transmitting business received and transmitted more than $32 million, according to the charges.

After receiving the bulk cash, the indictment alleges the Phans either drove those funds across the country or introduced them into the banking system for transmission through bank accounts, virtual currency accounts and the purchase and transfer of virtual currency. To carry out the conspiracy, Vinh and Diana Phan allegedly used bank accounts and virtual currency accounts in their names, in the names of three businesses they registered with the state of Texas or in the names of co-conspirators. They did not register their money transmitting business with the Department of the Treasury, nor did the state of Texas license them to engage in money transmission, according to the charges.

All five face up to 20 years in prison if convicted of conspiracy to launder monetary instruments and a maximum of 10 years for conspiring to engage in monetary transactions in criminally derived property. The Phans also face up to five years in prison if convicted of conspiring to operate or operating an unlicensed money transmitting business.

IRS-Criminal Investigation and Drug Enforcement Administration conducted the investigation with assistance from the Houston Police Department as part of the Organized Crime Drug Enforcement Task Forces (OCDETF) and South Texas High Intensity Drug Trafficking Areas (HIDTA) Financial Crimes Task Force. OCDETF identifies, disrupts and dismantles the highest-level drug traffickers, money launderers, gangs and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage.

Assistant U.S. Attorneys Stephanie Bauman and Richard W. Bennett are prosecuting the cases.

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 28-year-old Corpus Christi resident has been ordered to prison for possession with intent to deliver cocaine, announced Acting U.S. Attorney Jennifer B. Lowery.

Don Neal Devon Cobb pleaded guilty Aug. 2.

Today, U.S. District Judge David S. Morales ordered him to serve 88 months in federal prison to be immediately followed by three years of supervised release. At the hearing, Cobb admitted he had a drug problem.

Cobb first caught the attention of law enforcement when they pulled him over for a traffic violation. He soon fled the scene and led officers on a high speed pursuit before wrecking his vehicle. At the scene of the crash, authorities located a substantial amount of meth.  

The investigation led to the discovery that he was dealing narcotics. On May 28, 2020, law enforcement executed a search warrant on Cobb’s residence. Inside, they found cocaine, heroin, illegal mushrooms, marijuana, THC wax, a loaded firearm and items associated with drug trafficking. 

Cobb has been in custody since the time of his arrest where he will remain 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 Homeland Security Investigations, Texas Department of Public Safety and Corpus Christi Police Department. Assistant U.S. Attorney Barbara J. De Peña prosecuted the case.

HOUSTON – A local man who had several offices in the Houston area is set to appear in federal court for allegedly filing false taxes for clients, announced Acting U.S. Attorney Jennifer B. Lowery.

The indictment, filed March 18, charges David Wright with 14 counts of aiding and assisting in preparation and filing of false income tax returns. He is set to appear before U.S. Magistrate Judge Frances Stacy at 10 a.m.

Wright operated tax preparation offices in Houston, according to the indictment. As part of his regular business, he allegedly created and placed fraudulent Schedule C items on client Form 1040s. This enabled clients to receive a higher tax refund, according to the charges.

As a result of his actions, Wright allegedly caused hundreds of thousand dollars of tax harm to the government.

If convicted, he faces up to three years in prison, and a possible $250,000 fine.

IRS-Criminal Investigation conducted the investigation. Assistant U.S. Attorney Zahra Jivani Fenelon is prosecuting the case.

CORPUS CHRISTI, Texas – A 41-year-old convicted felon will be returning to federal prison for his role in a 17-kilogram cocaine trafficking conspiracy, announced Acting U.S. Attorney Jennifer B. Lowery.

Marcus Donell Hollowell aka Red pleaded guilty Aug. 5.

Today, U.S. District Judge Nelva Gonzales Ramos sentenced him to serve a 120-month sentence to be immediately followed by five years of supervised release. At the hearing, the court heard additional statements that described Hollowell’s role in the conspiracy and his felony convictions for trafficking cocaine and heroin possession. Judge Ramos noted the sentence was an adequate deterrent.

Between May 2020 and May 2021, Hollowell was involved in a conspiracy with others to possess with intent to distribute over five kilograms of cocaine between Corpus Christi and Ft. Myers, Florida. He helped coordinate cocaine or currency with other co-conspirators or sources of supply. 

Authorities seized over $250,000 on July 16, 2020.

At the time of Hollowell’s arrest in May, authorities discovered a loaded .44 caliber revolver, additional cocaine, meth, ecstasy and U.S. currency in his residence.

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

Co-conspirators Adan Rivera, 37, Corpus Christi, was previously sentenced to 135 months, while Rudy Reyna, 39, Robstown, was ordered to serve 121 months.

Immigration and Customs Enforcement’s Homeland Security Investigations (Corpus Christi and El Paso sectors) conducted the investigation with assistance from Drug Enforcement Administration, U.S. Marshals Service, Texas Department of Public Safety and Corpus Christi Police Department’s Narcotics Vice Investigative Division. Assistant U.S. Attorney Reid Manning prosecuted the case. 

HOUSTON – Two Houstonians are on their way to federal prison after admitting to recruiting a teenager on social media and trafficking her for sex, announced acting U.S. Attorney Jennifer B. Lowery.   

Demetrius Delaan White, 30, and Deonte Danquise Bailey-Roach, 28, pleaded guilty Jan. 27.

Today, U.S. District Judge Kenneth M. Hoyt sentenced White to 240 months, while Bailey-Roach received a 144-month-term of imprisonment. The court considered statements from the minor victim and her mother detailing the lasting impact of the teenager’s victimization. Both will be ordered to pay restitution to the victim and serve an additional five years on supervised release following completion of the prison terms, during which time they will have to comply with numerous requirements designed to restrict access to children and the internet. Both will also be ordered to register as sex offenders.

In 2017, White and Bailey-Roach recruited a troubled teenager on social media. They then brought her from her home in Stephenville to Houston to engage in commercial sex acts.

Over the next four days, they exploited the minor victim for their own sexual gratification and profit.  They posted the minor victim on internet advertisements for commercial sex, during which time more than 300 people expressed interest. They rented motel rooms for the sex acts, drove her to clients’ homes and took her to a truck stop. They also had her walk on Bissonnet Street, an area commonly known for an open and rampant sex trade.

To induce the minor victim into continuing to engage in the activity, both men gave her drugs before the commercial sex acts. They also kept all the cash proceeds.

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

The FBI and the Houston Police Department (HPD), both part of the Human Trafficking Rescue Alliance (HTRA), conducted the investigation.

HTRA law enforcement includes members of the HPD, FBI, Immigration and Customs Enforcement’s Homeland Security Investigations, Texas Attorney General’s Office, IRS-Criminal Investigation, Department of Labor, Department of State, Texas Alcoholic and Beverage Commission, Texas Department of Public Safety, Coast Guard and Sheriff’s Offices in Harris and Montgomery counties in coordination with District Attorney’s offices in Harris, Montgomery and Fort Bend Counties.

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

Assistant U.S. Attorneys Kate Suh and Sebastian Edwards are prosecuting the case.

HOUSTON – A 39-year-old Houston man has been ordered to federal prison after admitting he received and possessed child pornography, announced Acting U.S. Attorney Jennifer B. Lowery. 

Leon Travis Beard pleaded guilty Dec. 21, 2020.

Today, U.S. District Judge Kenneth Hoyt sentenced Beard to a total of 200 months of imprisonment. The court considered victim impact statements and took into account Beard’s future access to child pornography, noting whether Beard’s desire would be stronger than his will. Beard will also serve the rest of his life on supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. He will also be ordered to register as a sex offender and will to pay restitution to the victims.

In February 2019, law enforcement initiated an investigation of child pornography sharing which led them to Beard. He was found to be a member, and a facilitator, of multiple child pornography groups. These people engaged in the distribution of thousands of images and videos. A subsequent forensic analysis resulted in the discovery of approximately 304 videos and 1,008 images of child pornography, including of children under the age of five, bondage and acts of violence.

Beard was distributing, receiving and possessing child pornography less than a year after his release from state prison for possession of child pornography.

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. 

The FBI conducted the investigation.

Assistant U.S. Attorney Zahra Jivani Fenelon 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.

LAREDO, Texas – A 23-year-old man unlawfully residing in Laredo has admitted to conspiracy to transport 12 undocumented citizens, announced Acting U.S. Attorney Jennifer B. Lowery.

On April 22, Jesus Martinez-Villela attempted to flee authorities by driving off-road near Encinal. They ultimately located his abandoned truck with an injured person on the ground near it. Another victim was found  unresponsive in the bed of the truck. He was pronounced dead on scene.

Law enforcement conducted a search of the surrounding area and eventually apprehended 12 additional people. All were determined to be undocumented citizens illegally present in the United States. Some of those were transported to a local hospital to be treated for their injuries.

Sentencing will be set at a later date before U.S. District Judge Marina Garcia Marmolejo. At that time, Martinez-Villela faces up to life imprisonment as well as a possible $250,000 maximum fine.

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

Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with assistance from Border Patrol and Texas Department of Public Safety. Assistant U.S. Attorney Yoona Lim is prosecuting the case.

CORPUS CHRISTI, Texas – A 29-year-old local resident has entered a guilty plea to possession with intent to distribute 6.4 grams of meth after being found with several drugs, money and a stolen firearm, announced Acting U.S. Attorney Jennifer B. Lowery.

On May 8, law enforcement pulled Jacob Garcia over for a traffic violation. They soon observed him and believed he was intoxicated. The car also smelled of marijuana. They inquired as to whether he had been drinking or smoking marijuana, at which time he responded yes and that his wife had smoked marijuana in the vehicle. Authorities asked him to step out of the vehicle and conducted a thorough search.

They ultimately uncovered several bags of narcotics - 37 grams of cocaine, 6.4 grams of meth, 119 grams of marijuana and three THC pens. Authorities also discovered a stolen firearm and $1,260.

U.S. District Judge Nelva Gonzales Ramos accepted the plea and set sentencing for Jan. 12, 2022. At that time, Garcia faces a minimum of five and up to 40 years in federal prison as well as a possible $5 million maximum fine.

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

The Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; Jim Wells County Sheriff’s Office and the Alice Police Department conducted the investigation. Assistant U.S. Attorney Christopher Marin is prosecuting the case.

HOUSTON – A group of violent criminals are now facing possible severe federal penalties for firearms charges, to include use of a weapon resulting in death, carjacking, robbery and other felonies, announced Acting U.S. Attorney Jennifer B. Lowery.

Authorities arrested three Houston men today - Charles Dawson, 42, Damon Randolph, 47, and Kiyon Marshal, 40, today. They are expected to make their initial appearances in federal court before U.S. Magistrate Judge Sam Sheldon at 2 p.m. Also charged is Curtis Sandel, 36, who is already in custody and expected to be transferred to federal authorities to also make his initial appearance. All now face up to life in federal prison, if convicted

These men are now among several others who are charged with committing violent crimes in the Houston area.

U.S. Attorney Lowery joined several other leaders from federal and local law enforcement agencies to discuss the pervasive problem and their ongoing commitment to ensuring violent criminals are held accountable. Whether in state or federal court, leaders stressed that they strive to keep the community safe. The problem stretches across the entire Houston area, not in just one neighborhood or area.

In the aforementioned case, the men are accused of committing a robbery. During the crime, they allegedly shot and killed the victim and stole money and drugs from a local warehouse. They are charged with robbery, conspiracy to distribute narcotics and discharging a firearm resulting in death. They all now face up to life in prison, if convicted.

Also highlighted today was a violent carjacking case recently indicted in federal court. Iveon Gillaspie, 21, allegedly committed a violent carjacking Oct. 16, 2019. He was originally charged in state court and later allegedly committed another violent crime. A federal grand jury returned a two-count indictment charging him with carjacking and brandishing a firearm during and in relation to a crime of violence. He also now faces up to life in federal prison.

Earnest Taylor, 27, is a convicted felon. As such, he is prohibited from possessing a firearm. However, on Aug. 24, he fired shots from such a weapon at IRS agents who were attempting to serve a summons for aggravated identity theft. He is charged with illegally possessing the firearm and assault of a federal officer. He faces up to 20 years in prison.

Two more Houston men - Frederick Crouts, 19, and Donvonte Wallace, 24 - are charged with robbing what should be safe places in June. They allegedly robbed a Subway and a Family Dollar, brandishing a firearm during the crimes. They face 20 years as well as an additional minimum of seven years for the firearms charges.

Other people are also charged with unlawfully possessing firearms, such as Sergio Cabrera, 28, and Jordan Allen, 29. They face up to 10 years in federal prison, upon conviction.

The FBI; Bureau of Alcohol, Tobacco, Firearms and Explosives; Houston Police Department; Harris County District Attorney’s Office; Harris County Sheriff’s Office; Houston Independent School District Police Department; Treasure Inspector General for Tax Administration; and U.S. Postal Inspection Service are all assisting in the various cases.

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

HOUSTON – A 34-year-old Houston man has been ordered to federal prison for numerous drug and firearm convictions, announced Acting U.S. Attorney Jennifer B. Lowery.

The jury deliberated for approximately three hours before convicting Jason Edward Simpson aka Sixxgod Aug. 3 following a four-day trial. He was convicted of two counts of possession with the intent to distribute  controlled substances and conspiracy to do so as well as conspiracy to carry or possess a firearm in relation to and in furtherance of a drug trafficking crime. 

Today, U.S. District Judge Alfred H. Bennett, who presided over the trial and sentencing, ordered Simpson to serve 168 months in federal prison followed by five years of supervised release. At the hearing, the court heard additional information, including evidence of Simpson’s violent prior convictions. The court also heard about Simpson boasting as to his leadership role in the Gangster Disciples on social media and in emails and phones calls he made while in custody. He had also claimed he provided “A1” ecstasy to the “entire third ward.”  In handing down the prison term, Judge Bennett noted Simpson’s criminal history, which included convictions for aggravated robbery, assaulting a law enforcement officer, burglary of a vehicle and various controlled substances offenses.  

Simpson is a documented member of the Gangster Disciples. The jury saw one of his gang membership tattoos featuring a six-pointed star on the back of his right hand with the letter G in the center surrounded by the numbers seven and four. At trial, the jury heard the number 7 refers to the letter G, while 4 refers to D - initials for Gangster Disciples. The six-pointed star is a Star of David in honor of David Barksdale, who was an original founder of the Folk Nation gangs which includes the Gangster Discples.

On two separate occasions in August 2018, Simpson sold drugs to Jose Angel Garza and Fernando Isai Melendez who, in turn, sold it to others. Witnesses at trial specifically recalled Simpson’s tattoos on the back of his hand. The combined transactions involved over 1.5 kilograms of narcotics in the form of approximately 6,300 pills. During the exchanges, the men possessed a loaded firearm. Also present was Michael Manning, who pleaded guilty to being a felon in possession of a firearm.

At trial, the jury heard Simpson had claimed the drugs were ecstasy, but it was actually meth. The multi-colored pills were shaped like Minions, the Burger King logo and a Darth Vader head. At sentencing, the United States argued that one of the reasons pills are pressed into these shapes is to appeal to minors. 

At the time of their arrests, authorities uncovered incriminating details on their phones. The jury saw evidence the phones contained substantial phone and text conversations in preparing and arranging the drug deals. Simpson had also made several calls and composed emails while in custody admitting to his involvement in the crimes.

The defense attempted to convince the jury there was insufficient evidence to prove Simpson was more than just merely present while the drug transactions occurred. They did not believe those claims and found him guilty as charged.

Melendez, 29, and Garza, 29, both of Houston, had previously pleaded guilty to conspiracy with the intent to possess a controlled substance. Melendez was sentenced to 57 months while Garza received 64 months. Manning, 34, Houston, served 18 months. 

Simpson 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 Houston Police Department conducted the investigation. Assistant U.S. Attorneys Adam Laurence Goldman and Christine Jiadai Lu prosecuted the case.

The Justice Department announced today that it has opened a statewide investigation into the conditions in the five secure juvenile correctional facilities run by the Texas Juvenile Justice Department. 

The investigation will examine whether Texas provides children confined in the facilities reasonable protection from physical and sexual abuse by staff and other residents, excessive use of chemical restraints and excessive use of isolation. The investigation will also examine whether Texas provides adequate mental health care.

“Too often children held in juvenile detention facilities are subject to abuse and mistreatment, and deprived of their constitutional rights,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “State officials have a constitutional obligation to ensure reasonable safety for children in these institutions. The Department of Justice stands ready to protect the rights of children who end up in juvenile facilities and our investigation will ensure that the treatment of these children comports with constitutional standards.”

“The U.S. Attorney’s Office of the Western District of Texas is committed to protecting the constitutional rights of all persons, including vulnerable young persons incarcerated in Texas Juvenile Justice Department secure facilities,” said U.S. Attorney Ashley C. Hoff for the Western District of Texas. “We look forward to partnering with the Civil Rights Division and other U.S. Attorney’s Offices in our state to conduct a fair and thorough investigation of these allegations.”

“Young people, even though they are confined in a juvenile facility, should not be abused, mistreated or deprived of essential services,” said Acting U.S. Attorney Jennifer B. Lowery of the Southern District of Texas. “We have a duty to ensure young people incarcerated in our state are held under safe and constitutional conditions.”

“No matter who they are – or what they’ve done – our state’s kids deserve safe environments,” said Acting U.S. Attorney Chad Meacham of the Northern District of Texas. “We cannot expect juvenile offenders to thrive later in life if they emerge from confinement traumatized by sexual abuse, excessive force, or incessant isolation.”

“The U.S. Attorney’s Office for the Eastern District of Texas is committed to protecting the constitutional rights of all Texas children, including those incarcerated in Texas Juvenile Correctional Facilities,” said Acting U.S. Attorney Nicholas J. Ganjei of the Eastern District of Texas. “We are proud to partner with the Civil Rights Division and the other U.S. Attorney’s Offices of Texas to conduct a fair and thorough investigation of these allegations.”

The department has not reached any conclusions regarding the allegations in this matter. The investigation will be conducted under the Civil Rights of Institutionalized Persons Act (CRIPA) and the Violent Crime Control and Law Enforcement Act. Both statutes give the department the authority to investigate systemic violations of the rights of young people in juvenile correctional facilities. The department’s work has led to important reforms to protect the rights of young people housed in those facilities. 

The Civil Rights Division’s Special Litigation Section is conducting this investigation jointly with the U.S. Attorneys’ offices in the Western, Eastern, Southern and Northern Districts of Texas. Individuals with relevant information are encouraged to contact the department via phone at 1-866-432-0438 or by email at TX.Juveniles@usdoj.gov.

Additional information about the Civil Rights Division’s work regarding juvenile correctional facilities and the administration of juvenile justice is available on its website at https://www.justice.gov/crt/rights-juveniles.

CORPUS CHRISTI, Texas – A 36-year-old Corpus Christi gang member with a lengthy criminal history has been ordered to federal prison following his conviction of firearms and drug trafficking offenses, announced Acting U.S. Attorney Jennifer B. Lowery.

A federal jury convicted Robert Loya aka Lil’ Rob May 20 for possession with intent to distribute meth and possession of a pistol and a stolen .50 caliber long-range rifle following a two-day trial and approximately 45 minutes of deliberation. He is a convicted felon and ranking member of the Texas “Mexikan” Mafia.

Today, U.S. District Judge Drew B. Tipton handed Loya a total sentence of 360 months in federal prison to be immediately followed by five years of supervised release. At the hearing, the court heard that Loya had continued his drug trafficking activities, even after his arrest, by directing a female accomplice to smuggle narcotics into the facility where he was incarcerated.  

Authorities obtained information through an unrelated investigation in Laredo that led to the execution of a search warrant at Loya’s residence Feb. 21, 2020. At that time, law enforcement seized two firearms, assorted ammunition and over seven kilograms of meth. The jury also heard that Loya was on federal supervised release for a previous firearms conviction at the time of the search. However, he had not provided his supervision officer with his actual address, falsely claiming to live with his parents next door.

After the search, Loya fled the area and remained a fugitive for almost three months before his arrest May 13, 2020, in Corpus Christi near his girlfriend’s home.

He has been in custody since that time where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

The Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; Immigration and Customs Enforcement’s Homeland Security Investigations and the FBI conducted the investigation with the assistance of the Texas Department of Public Safety and the Corpus Christi Police Department. Assistant U.S. Attorneys Molly K. Smith and Brittany L. Jensen prosecuted the case.

This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

BROWNSVILLE, Texas – A 32-year-old former officer with the Primera Police Department (PPD) has been ordered to federal prison for possessing child pornography, announced Acting U.S. Attorney Jennifer B. Lowery.

Joel Alex Sandate pleaded guilty April 15.

Today, U.S. District Judge Fernando Rodriguez Jr. ordered him to serve a 120-month sentence. At the hearing, the court also heard additional information today including the victim impact statement from the victim and her mother. Sandate was further ordered to pay $4,320 in restitution to the known victim and ordered an additional $10,000 special assessment. Sandate will also serve 20 years on supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. He will also be ordered to register as a sex offender. 

The investigation revealed that from September 2019 to March 2020, Sandate had installed hidden cameras to capture recordings of a minor female. He saved the recorded videos onto various computer media devices such as his cellphone, a sim card and a USB drive.

Another PPD officer had discovered the images and reported it to authorities.

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

Immigration and Customs Enforcement’s Homeland Security Investigations - Rio Grande Valley Child Exploitation Task Force conducted the investigation with the assistance of PPD, Texas Rangers and the Cameron County District Attorney’s Office.

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

CORPUS CHRISTI, Texas - A 41-year-old Corpus Christi has been ordered to prison for role in an attempted armed robbery of local clock shop, announced Acting U.S. Attorney Jennifer B. Lowery.

A federal jury convicted Eric Richard Garza June of attempting to effect commerce by robbery and discharging a firearm during and in relation to a crime of violence. They deliberated for only approximately one hour following a two-day trial.

Today, U.S. District Judge Nelva Gonzales Ramos handed Garza a 78-month-term of imprisonment for the attempted robbery and an additional 120 months for the discharge of a firearm which must be served consecutively. The total 198-month prison term will be immediately followed by five years of supervised release. At the hearing, the court heard from the victim who explained how he suffered severe physical and psychological injuries as a result of being shot twice as well as financial losses from lost wages and hospital bills. In handing down the sentence, the court noted the severity of the offense, the harm caused to the victim and his financial losses as a result of Garza’s crime.

On Dec. 14, 2018, Garza drove to Central Watch and Clock Repair in Corpus Christi with Christopher Rangel-Musial. They put on masks and entered the store. Once inside, Rangel-Musial brandished the 9mm semi-automatic pistol Garza had given him and pointed it at the owner as Garza had instructed. Garza then demanded the victim to get on the ground, but he refused. Garza subsequently told Rangel-Musial twice to shoot the victim. Once again, Rangel-Musial did as told and fired three shots, hitting the victim in the stomach and back.

The shop owner managed to get to his revolver and chase Garza and Rangel-Musial out of the store. The victim shot Rangel-Musial as he fled.

At trial, the victim testified about the injuries he sustained when the would-be robbers shot him. The victim required two surgeries, lost eight inches of his colon as well as his spleen and suffered an injured kidney. He was in the ICU for four days. He now has an 11-inch scar as a constant reminder of that day and suffers from persistent insomnia.

At trial, the defense attempted to convince the jury that Rangel-Musial’s girlfriend was the accomplice. However, the victim was steadfast in his testimony that the voice he heard tell Rangel-Musial to “shoot him” belonged to a man. The jury did not believe the defense theory and found Garza guilty as charged.

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

Rangel-Musial, 26, Corpus Christi, previously pleaded guilty, accepted responsibility and testified against Garza at trial. He later received a 108-month prison sentence.

The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation with the assistance of the Corpus Christi Police Department. Assistant U.S. Attorneys Joel Dunn and Christopher Marin prosecuted the case.

LAREDO, Texas – A 45-year-old Laredo resident has been ordered to federal prison for his role as a leader-organizer in a meth distribution conspiracy, announced Acting U.S. Attorney Jennifer B. Lowery.

Federico Castanon pleaded guilty June 21.

Today, U.S. District Judge Marina Garcia Marmolejo to 144 months in prison. At the hearing, the court heard evidence Castanon was a leader/organizer of a drug trafficking organization. He continued to attempt to coordinate criminal activity by speaking to associates in coded language on recorded jail calls while in custody. In imposing the sentence, Judge Marmolejo noted that if he was continuing in his attempts to still coordinate drug trafficking while in custody, he clearly had no remorse for his actions.

Authorities had conducted an undercover operation which resulted in the Aug. 3, 2015, seizure of approximately three kilograms of meth and one kilogram of cocaine. The investigation identified Castanon as a leader/organizer of the smuggling event after he had met with law enforcement and discussed the seizure.

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

The Drug Enforcement Administration conducted the investigation with assistance from Border Patrol. Assistant U.S. Attorneys Francisco J. Rodriguez and Ursula Smith prosecuted the case.

HOUSTON – Crane Company has agreed to pay to the United States to resolve allegations it violated the False Claims Act (FCA) by failing to comply with Military Specification (Mil Spec) Mil-V 24624 for certain high performance butterfly valves and requirements for inclusion on the Qualified Products List (QPL) where the valves appeared. The valves were supplied for use in U.S. Navy ships.

“We are committed to ensuring that the military gets what it pays for,” said Acting U.S. Attorney Jennifer B. Lowery for the Southern District of Texas “We will vigorously enforce the rules and regulations governing military purchasing contracts.”

“Requirements like the Mil Spec and QPL play an important role in protecting the quality of the equipment received by the government, as well as the safety of military personnel,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “Companies that knowingly fail to comply with these requirements will be held accountable.”

“This settlement highlights the commitment of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS) and our law enforcement partners to protect the integrity of the DoD acquisition process,” said Special Agent in Charge Michael Mentavlos of the DCIS Southwest Field Office. “DCIS will continue to thoroughly investigate allegations of fraud and product non-conformance and pursue all available remedies.” 

The settlement announced today resolves allegations that from May 2011 through September 2017, Crane supplied high performance butterfly valves to military ship builders that included Reinforced Teflon (RTFE) seats. From May 2011 to September 2015, Crane also supplied high performance butterfly valves that contained Monel bolting. The government contended that Crane sold the military Mil Spec valves with RFTE seats and Monel bolting that had not been approved for use by the Navy and failed to disclose these modifications to the valves in violation of the QPL Program, which governs the approval of products such as valves for use in military contracts. 

The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the FCA by Corla Jacobson, a former Crane employee. The FCA permits private parties to sue for false claims on behalf of the United States and to share in any recovery. Jacobson will receive $855,728 of the FCA settlement.

The settlement was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch (Fraud Section) and the U.S. Attorney’s Office for the Southern District of Texas with investigative support from DCIS and U.S. Navy Criminal Investigation Division.

Senior Trial Counsel Alicia J. Bentley of the Civil Division and Assistant U.S. Attorney Andrew Bobb of the Southern District of Texas handle the matter.

Related court documents and information from the civil lawsuit can be accessed on PACER.

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

Crane Company (Crane) has agreed to pay to the United States over $4.5 million to resolve allegations that it violated the False Claims Act by failing to comply with Military Specification (Mil Spec) Mil-V 24624 for certain high performance butterfly valves and requirements for inclusion on the Qualified Products List (QPL) where the valves appeared. The valves were supplied for use in U.S. Navy ships.

“Requirements like the Mil Spec and QPL play an important role in protecting the quality of the equipment received by the government, as well as the safety of military personnel,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “Companies that knowingly fail to comply with these requirements will be held accountable.”

“We are committed to ensuring that the military gets what it pays for,” said Acting U.S. Attorney Jennifer B. Lowery for the Southern District of Texas. “We will vigorously enforce the rules and regulations governing military purchasing contracts.”

“This settlement highlights the commitment of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS) and our law enforcement partners to protect the integrity of the DoD acquisition process,” said Special Agent in Charge Michael Mentavlos of the DCIS Southwest Field Office. “DCIS will continue to thoroughly investigate allegations of fraud and product non-conformance and pursue all available remedies.” 

The settlement announced today resolves allegations that from May 2011 through September 2017, Crane supplied high performance butterfly valves to military ship builders that included Reinforced Teflon (RTFE) seats. From May 2011 to September 2015, Crane also supplied high performance butterfly valves that contained Monel bolting. The government contended that Crane sold the military Mil Spec valves with RFTE seats and Monel bolting that had not been approved for use by the Navy and failed to disclose these modifications to the valves in violation of the QPL Program, which governs the approval of products such as valves for use in military contracts. 

The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Corla Jacobson, a former Crane employee. The False Claims Act permits private parties to sue for false claims on behalf of the United States and to share in any recovery. The qui tam case is captioned United States ex rel. Jacobson v. Crane Co., No. 4:17-CV-01431 (S.D. Tex.). Ms. Jacobson will receive $855,728 of the False Claims Act settlement.

The settlement was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch (Fraud Section) and the U.S. Attorney’s Office for the Southern District of Texas with investigative support from the DCIS and the U.S. Navy Criminal Investigation Division.

Senior Trial Counsel Alicia J. Bentley of the Civil Division and Assistant U.S. Attorney Andrew Bobb of the Southern District of Texas handled the matter.

Related court documents and information from the civil lawsuit can be accessed on PACER.

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

HOUSTON – A 33 year-old Houston man with a lengthy criminal history has been ordered to federal prison after packaging thousands of ecstasy pills for sale, announced Acting U.S. Attorney Jennifer B. Lowery.  

Marquese Scott aka Fatboi pleaded guilty Feb. 9, 2019, to possession with intent to distribute MDMA, commonly known as ecstasy. He has been repeatedly documented as a high-ranking member of the 59 PIRU Criminal Street Gang and has many tattoos identifying him as such.

Today, U.S. District Judge Andrew S. Hanen sentenced him to a total of 210 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the court heard about Scott’s lengthy criminal record, including aggravated sexual assault of a child, theft, multiple convictions of robbery, carjacking, drug possession, failing to register as a sex offender, unauthorized use of a vehicle and harassment of a public servant. Further, following the drug trafficking in the instant offense, Scott was convicted of dangerous conduct after he got into a fight with his co-defendant - Nicole Olajide, 33, Houston - and her mother, threatened to kill them and then slashed their tires with a knife. During sentencing, Scott attempted to introduce letters from them claiming it was Olajide’s fault he had done so.

In pronouncing the sentence, Judge Hanen noted Scott’s lengthy criminal history, including his convictions of violent crimes including his past convictions for robbery and and deadly conduct.  

In 2018, Scott announced to potential buyers that he was selling several multi-kilogram quantities of meth and ecstasy. He then sent photographs of himself with several rocks of meth and “K-Packs,” which are gallon-sized baggies, each containing approximately ecstasy 1,000 pills. Scott advertised 6,000 ecstasy pills for $3,500. 

Authorities executed a search warrant and found Scott and Olajide packaging ecstasy into the K-Packs. They recovered a total of approximately four kilograms of ecstasy.

Olajide had also pleaded guilty and later sentenced to 21 months in federal prison for her role in the offense.

Scott 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 Houston Police Department conducted the investigation. Assistant U.S. Attorney Adam Laurence Goldman is prosecuting the case.

HOUSTON – A 27-year-old Indian citizen illegally present in the United States who had resided in Houston has entered a guilty plea to conspiracy to commit mail fraud, announced Acting U.S. Attorney Jennifer B. Lowery.

Sumit Kumar Singh admitted to participating in a fraud ring from 2018 – 2020 which operated out of various cities, including Houston. The scheme targeted elderly victims throughout the United States and elsewhere.

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

One such scheme involved the claim of providing computer technical support services in order to gain remote access to victims’ computers. The fraud ring tricked and deceived victims into believing a technical support company purportedly helped them with their computers. They then told the victims they had erroneously refunded or overpaid them and that the victim needed to return the overpayment in cash via FedEx or UPS.

The scheme generally worked because fraudsters contacted victims by phone or via internet sites directing them to a particular phone number. Once victims contacted them, they were told various stories to include the victim was communicating with a technical support center that needed remote access to their computer in order to provide technical support services. Once a victim provided such access, the fraudsters gained access to their personal data and bank and credit card information.

Victims typically paid a fee to conspirators for the alleged technical support but were later told they were due a refund. Through paying for “technical support” or through the “refund” process, the ring gained access to the victim’s bank account(s) and credit cards and manipulated the accounts to make it appear the victim was paid too large a refund due to a typographical error (e.g., a victim received a refund of $10,000 instead of the intended refund amount of $100). Victims were then instructed to reimburse the ring by various means.

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

Today, Singh admitted to acting as a runner to pick up parcels of victim cash using fraudulent international driver’s licenses in fake names.

U.S. District Judge Kenneth Hoyt accepted the plea and set sentencing for Dec. 20. At that time, Singh faces up to 20 years in federal prison and a possible $250,000 fine. He will remain in custody while awaiting sentencing.

The FBI, U.S. Postal Inspection Service and IRS-Criminal Investigation conducted the investigation with assistance from Immigration and Customs Enforcement, Fort Bend County Sheriff’s Office and other local law enforcement agencies throughout the United States. Assistant U.S. Attorneys Belinda Beek and Quincy Ollison are prosecuting the case. 

CORPUS CHRISTI, Texas - Three Houston men have pleaded guilty to a string of Love’s Travel Stop robberies throughout Texas and Louisiana, announced Acting U.S. Attorney Jennifer B. Lowery.

Christopher Bernard Brown aka Chris and C, 39, pleaded guilty today, while Wesley Jerome Davis, 28, and Kevin Wilson aka KCosa or KC, 33, admitted to their roles July 29.

Between May 29, and Sept. 13, 2019, the men conspired with each other to steal or attempt to steal ATMs and the currency they contained from at least nine Love’s Travel Stops. They admitted they threatened or used physical force towards customers or employees.

Brown typically served as a scout or lookout. Davis and Wilson wore masks and gloves and removed or attempted to remove the ATMs using a vehicle. The men would then lift the dislodged ATMs into a waiting vehicle and drive away.

They failed on three attempts but managed to take a significant amount of money from the stolen ATMs in Hungerford, Seguin, Lufkin, Cleveland, and Three Rivers as well as in Vinton, Louisiana. 

In the Three Rivers incident, Brown or others came into contact with Love’s employees or customers and made statements and gestures that incited fear. Employees did not intervene for fear of sustaining serious bodily injury. 

In Seguin, a good Samaritan attempted to stop the ATM robbery but Davis struck him twice. The victim fell to the floor and suffered bodily injury from a head wound.

Brown is set for sentencing Jan. 5, 2022, before U.S. District Judge David S. Morales, while Wilson and Davis are set for Oct. 27. At their hearings, each faces up to 20 years in federal prison.

They have been and will remain in custody pending their sentencing hearings.

Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of sheriff’s offices in Live Oak, Angelina, Brazoria, Wharton, Medina and Cass Counties; police departments in Angleton, Cleveland, Seguin and Lufkin and Vinton, Louisiana.

Assistant U.S. Attorney Reid Manning is prosecuting the case.

A Bangladeshi national was sentenced today to 46 months in prison for his role in a scheme to smuggle undocumented individuals from Mexico into the United States.

According to court documents, between March 2017 and June 2019, Mohamad Milon Hossain, 41, a Bangladeshi national formerly residing in Tapachula, Mexico, conspired with and assisted human smugglers operating out of Bangladesh, South and Central America, and Mexico to bring numerous undocumented individuals to the U.S. border in exchange for payment. Hossain operated out of Tapachula where he maintained a hotel that housed the individuals on their way to the United States. Hossain provided plane tickets and other assistance for the individuals to travel from Tapachula to Monterrey, Mexico, where co-conspirator Moktar Hossain assisted their illegal crossing into the United States.

“This human smuggling conspiracy operated on a global scale and endangered the lives of Bangladeshi migrants,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “The Justice Department will continue working with our law enforcement partners here and abroad to bring human smugglers like Hossain to justice and to disrupt these criminal networks that unlawfully bring migrants from across the world into the United States.”

“This criminal placed profit before life,” said Acting Assistant U.S. Attorney Jennifer B. Lowery of the Southern District of Texas (SDTX). “Human smugglers like Hossain often put migrants in dangerous situations, many leading to serious injury and even death. The SDTX is no stranger to this issue and will fervently pursue the battle, holding accountable not only the transporters, but any individuals who provided assistance along the way.”

“Today’s sentencing is a great example of how Homeland Security Investigations (HSI) uses its worldwide resources and interagency partnerships to bring international criminals like Mohamad Milon Hossain to justice in the United States,” said Special Agent in Charge Shane Folden of HSI San Antonio. “Hossain was a key facilitator and smuggler of Bangladeshi nationals and his actions put our national security at risk. HSI is committed to working with its domestic and international partners to combat this type of crime throughout the globe.”

This case was investigated by HSI Laredo, with assistance from the HSI Human Smuggling Unit, HSI Mexico City, HSI Houston, HSI Calexico, HSI Monterrey, U.S. Customs and Border Protection (CBP) Office of Field Operations, CBP Border Patrol and the U.S. Marshals Service. This investigation was conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI. The ECT program focuses on human smuggling networks that may present particular national security or public safety risks, or present grave humanitarian concerns. ECT has dedicated investigative, intelligence and prosecutorial resources. ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.

Trial Attorneys Erin Cox and James Hepburn of the Criminal Division’s Human Rights and Special Prosecutions Section prosecuted this case with assistance from the U.S. Attorney’s Office for the Southern District of Texas. 

Attorney General Merrick B. Garland established Joint Task Force Alpha to marshal the investigative and prosecutorial resources of the Department of Justice, in partnership with the Department of Homeland Security (DHS), to enhance U.S. enforcement efforts against the most prolific and dangerous human smuggling and trafficking groups operating in Mexico and the countries of Guatemala, El Salvador, and Honduras. JTFA consists of federal prosecutors and attorneys from U.S. Attorney’s Offices along the Southwest Border (District of Arizona, Southern District of California, Southern District of Texas, and Western District of Texas), from the Criminal Division and the Civil Rights Division, along with law enforcement agents and analysts from U.S. Immigration and Customs Enforcement’s HSI and CBP.  The FBI and the Drug Enforcement Administration are also part of the Task Force. 

BROWNSVILLE, Texas – A 28-year-old Harlingen man has been ordered to federal prison for life for robbing a bank with a dangerous weapon, announced Acting U.S. Attorney Jennifer B. Lowery.

Muhamed Pathe Bah pleaded guilty June 28 on the eve of trial.

Today, U.S. District Judge Rolando Olvera ordered him to serve the maximum – receiving life in prison for the robbery as well as another 25 years for the use of the firearm during a crime of violence to run consecutively. Bah must also pay restitution to his victim. At the hearing, the court heard about the viciousness of his crime and the extreme emotional impact on the victims.

in shooting the bank teller in the head within five seconds of interacting with him,

On June 26, 2020, at approximately 9:45 a.m., Bah entered a Texas Regional Bank on Sunshine Strip in Harlingen and made his way to a bank teller. Within five seconds, Bah pulled a pistol from a bag and shot the teller in the head. Bah then robbed the bank and fled the area with the stolen money.

Law enforcement saw a man matching his description who was riding a bicycle. It was Bah. Authorities then took him into custody.  

During the arrest, he had a pistol with a spent shell casing in its cylinder on him as well as a large amount of money in a bag he was carrying. He was also in possession of a mask that matched the description witnesses had given.

The FBI conducted the investigation along with the Harlingen Police Department. Assistant U.S. Attorneys David A. Lindenmuth and Nicole Piquette prosecuted the case.

A Texas man pleaded guilty today in the Southern District of Texas to fraudulently obtaining more than $1.6 million in Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief and Economic Security (CARES) Act.

According to court documents, Lee Price III, 30, of Houston, submitted two fraudulent PPP loan applications to two different lenders on behalf of entities 713 Construction LLC and Price Enterprises Holdings LLC. The 713 Construction LLC PPP loan application was made in the name of an individual who died shortly before the application was submitted. Through these two PPP loan applications, Price sought and obtained over $1.6 million in PPP loan funds.

Price falsely represented the number of employees and payroll expenses in each of the PPP loan applications. To support the fraudulent PPP applications, Price also submitted fraudulent tax records and other materials. After he received the PPP loan funds, Price spent the money on a Lamborghini Urus, a Ford F-350 truck, and a Rolex watch, and to pay off a loan on a residential property, among other purchases. 

The Department of Justice, along with law enforcement partners, seized over $700,000 of the disbursed PPP funds in this matter.

Price pleaded guilty to two counts of wire fraud and three counts of money laundering. He is scheduled to be sentenced on Nov. 29 and faces a maximum penalty of 20 years in prison for each count of wire fraud and 10 years in prison for each count of money laundering. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Acting U.S. Attorney Jennifer Lowery for the Southern District of Texas; Special Agent in Charge Catherine Huber of the Federal Housing Finance Agency Office of Inspector General (FHFA-OIG)–Central Region; Special Agent in Charge Sharon Johnson of the SBA Office of Inspector General (SBA-OIG)–Central Region; and Acting Inspector in Charge Dana Carter of the U.S. Postal Inspection Service – Houston Division made the announcement.

FHFA-OIG, SBA-OIG, and the U.S. Postal Inspection Service–Houston Division investigated the case.

Trial Attorney Andrew Tyler of the Criminal Division’s Fraud Section and Trial Attorneys James Alexander and Matthew Grisier of the Criminal Division’s Money Laundering and Asset Recovery Section are prosecuting the case with the assistance of Assistant U.S. Attorney James McAlister of the Southern District of Texas. Assistant Deputy Chief Timothy A. Duree and Trial Attorney Kyle Maurer of the Criminal Division’s Fraud Section assisted in the investigation of the case.  

The Fraud Section leads the department’s prosecution of fraud schemes that exploit the PPP. In the months since the PPP began, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases. The Fraud Section has also seized more than $65 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at https://www.justice.gov/criminal-fraud/ppp-fraud.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.

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

McALLEN, Texas - A total of 16 Starr County residents are now in custody following the return of two separate and unrelated indictments alleging the distribution of large quantities of meth, cocaine and marijuana, announced Acting U.S. Attorney Jennifer B. Lowery.

Among those taken into custody were Rio Grande City residents, Roel Valadez, 31, Jose Diaz, 43, Isidoro Garza, 53, Jeronimo Morin, 34, Tomas Martinez-Talamantes, 30, Noel Avila, 46, Samuel Torres, 33, Hugo Canales, 63, Jose Ortiz, 46, Ignacio Garza, 49, Diego Reyes, 40, Marcos Barrientos, 38, Janella Chavarria, 32; and David Gomez, 22, Mission. Abel Reyes, 33, Mission, turned himself in a short time ago. With the exception of Diaz, who will make his initial appearance in Austin, the remaining defendants are expected to appear before U.S. Magistrate Judge Scott Hacker tomorrow at 9 a.m.

A federal grand jury returned a 10-count indictment under seal Sept. 7, charging Garza, Reyes, Barrientos, Chavarria, Valadez, Vela, Gomez, Garza, Diaz, Ortiz, Canales, Morin, Avila and Torres. It alleges they conspired from July 2020 to September 2021 to possess with intent to distribute more than 500 grams or more of meth, five kilograms or more of cocaine and 1000 kilograms of marijuana. Some are also charged with substantive counts on varying dates of possession with intent to distribute one or more of the narcotics and maintaining a stash house. 

A separate two-count sealed indictment was also returned Sept. 7. It charges Martinez-Talamantes beginning in June of 2020 and continuing until August of  2020 conspired to possess 500 grams or more of methamphetamine. They are also charged with the substantive count of possession of 193 kilograms of methamphetamine.

All face a minimum of 10 years and up to life in federal prison as well as a possible $10 million maximum fine upon conviction. Those charged in the substantive possession counts could also face additional terms from five to 40 years and/or a maximum of 20-year-term of imprisonment. .

This investigation was an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation dubbed Operation IceRiver. OCDETF is the largest anti-crime task force in the country. Its mission is to disrupt and dismantle the most significant drug trafficking and transnational criminal organizations that threaten the United States through prosecutor-led, intelligence-driven, multi-agency task forces that leverage the authorities and expertise of federal, state and local law enforcement. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage.

The Drug Enforcement Administration, FBI and Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of IRS-Criminal Investigations; U.S. Marshals Service; Hidalgo County District Attorney’s Office; Bureau of Alcohol Tobacco, Firearms and Explosives, police departments in Pharr, Edinburg and University of Texas; sheriff’s offices in Brooks, Jim Wells County, Live Oak, Cameron and Hidalgo Counties; Border Patrol; Customs and Border Protection, Texas Department of Public Safety, Texas Rangers and National Guard.

Assistant U.S. Attorneys Patricia Cook Profit and Jongwoo Chung are prosecuting the cases.

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

HOUSTON – Another alleged associate of one of the most serious transnational criminal organizations has arrived from Colombia and is set to make his initial appearance in Houston federal court.

Jose Gabriel Alvarez Ortiz, 26, landed in Houston just moments ago. He is set to appear before U.S. Magistrate Judge Peter Bray at 2 p.m. tomorrow.  

Ortiz is charged with distributing cocaine with other alleged members of the National Liberation Army (Ejército de Liberación Nacional aka ELN), two of whom - Yamit Picon-Rodriguez aka Choncha, 36, and Henry Trigos-Celon aka Moncho Picada, 44, were extradited last month. They are facing narco-terrorism and drug trafficking charges.

ELN is a Colombian guerrilla group officially designated as a foreign terrorist organization Oct. 8, 1997. It continues to operate as one of the largest narco-terrorism organizations in the world.

A federal grand jury returned an indictment against Ortiz, Picon-Rodriguez and Trigos-Celon and others on Feb. 12, 2020. Colombian authorities took them into custody at the request of the United States in September 2020.

Ortiz is charged with international cocaine distribution. In early 2019, Ortiz and four others allegedly participated in distributing approximately 30 kilograms of cocaine in Colombia, knowing it would be imported into the United States.

Ortiz’s co-defendants are also charged with distribution of a controlled substance and knowing or intending to provide anything of pecuniary value to a person or organization that engages in terrorism or terrorist activity (narco-terrorism).

According to the indictment, Picon-Rodriguez, Trigos-Celon and others were involved in an ongoing 20-year conspiracy to distribute cocaine from Colombia to the United States knowing or intending to provide pecuniary support to the ELN.

Suspected ELN leader Villegas-Palomino aka Carlos El Puerco, 38, is also charged but not yet in custody. He is considered a fugitive as are Jaime Miguel Picon-Rodriguez aka Chencho and Jairo, 38, and Diomedes Barbosa-Montaño aka El Burro, 38. A warrant remains outstanding for their arrests. Anyone with information about their whereabouts is asked to contact the FBI at 1-800-CALL-FBI or submit tips online at tips.fbi.gov. The U.S. Department of State, through its narcotics rewards program, is offering up to a $5 million reward for information leading to the arrest and/or conviction of Villegas-Palomino.

The Houston Divisions of the FBI and Drug Enforcement Administration (DEA) conducted the investigation as part of the Organized Crime Drug Enforcement Task Forces (OCDETF). FBI and DEA agents in Bogota provided substantial support as did the Department of Justice’s (DOJ) multi-agency Special Operations Division, including assigned attorneys from the Narcotic and Dangerous Drug Section and National Security Division, as well as DOJ Judicial Attaches in Colombia with the cooperation of Colombian authorities. DOJ – Office of International Affairs, Houston Police Department, U.S. Southern Command and international partners including the Colombian Army, National Police, National Prosecutor's Office and Technical Body of Investigation also provided critical assistance.

The operation, dubbed Operation Catatumbo Lightning, is part of an OCDETF Strike Forces initiative which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs and transnational criminal organizations.  The specific mission of the Houston Strike Force is to disrupt, dismantle and prosecute the drug trafficking organizations that are designated Consolidated Priority Organization or Regional Priority Organization Target heads with their affiliates that impact Houston and south Texas.

Assistant U.S. Attorneys Casey N. MacDonald and Anibal Alaniz of the Southern District of Texas are prosecuting the case.

An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

HOUSTON - Formosa Plastics Corporation has agreed to pay $2.85 million in civil penalties and improve its risk management program to resolve alleged violations of the Chemical Accident Prevention Provisions of the Clean Air Act (CAA) at their petrochemical manufacturing plant in Point Comfort.

In the complaint, filed today with the proposed consent decree, the United States alleges 20 violations of the CAA. Formosa’s Point Comfort plant is subject to Section 112(r) of the CAA regulations, known as the Risk Management Program, which are designed to prevent the accidental release of hazardous substances.

The Environmental Protections Agency’s (EPA) investigation of Formosa was spurred by a series of fires, explosions and accidental releases at the Point Comfort plant spanning from May 2013 through October 2016. These accidents caused injuries to workers, including second- and third- degree burns and chlorine inhalation requiring hospitalization as well as property damage and the release of extremely hazardous substances to the environment.

“Formosa repeatedly failed to comply with the chemical accident prevention provisions of the CAA at the Point Comfort plant, repeatedly placing their workers, neighbors and the environment in serious danger,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “This settlement will ensure Formosa’s compliance with essential regulations intended to protect workers and the community as well as help prevent dangerous chemical releases from occurring in the future.”

“This case demonstrates the importance of adopting and executing adequate chemical safety procedures to protect the safety of workers, the community and the environment,” said Acting U.S. Attorney Jennifer Lowery for the Southern District of Texas.

“Formosa’s failure to implement safe work practices and failure to design and maintain a safe facility put public health and the environment at risk,” said Acting Assistant Administrator Larry Starfield for EPA’s Office of Enforcement and Compliance Assurance. “Today’s settlement requires Formosa to achieve compliance with its environmental obligations now and in the future, protecting air quality and the community of Point Comfort.”

Formosa will be required to update its response and personal protection plans to prevent employee injury, conduct a third-party audit of its risk management practices, perform corrective actions based on audit results and develop key performance indicators to evaluate future compliance. In addition, the company agreed to conduct a service compatibility evaluation to identify any incompatible equipment and implement a mechanical integrity reporting program.

The cost of the injunctive relief is estimated to be at least $1.4 million and will greatly improve the safe management of hazardous substances at the facility.

Congress added section 112(r) to the CAA in response to a 1984 catastrophic release of methyl isocyanate in Bhopal, India, that killed more than 3,400 people and caused over 200,000 others to suffer injuries. Under the CAA, facilities like Formosa’s are required to identify hazards, design and maintain a safe facility, minimize the consequences of accidental releases that do occur and comply with regulatory prevention measures. Failing to comply with these requirements increases the risk of accidents and threatens surrounding communities.

Reducing the risk to human health and the environment by decreasing the likelihood of chemical accidents at chemical facilities is a top priority for EPA’s enforcement and compliance assurance program.

The proposed consent decree is subject to a 30-day public comment period and court review and approval. A copy of the consent decree is available on the Department of Justice website at www.justice.gov/enrd/Consent_Decrees.html.

HOUSTON – A 37-year-old Indian citizen who was illegally residing in Houston has entered a guilty plea to conspiracy to commit mail fraud, announced Acting U.S. Attorney Jennifer B. Lowery.

Between April and October 2019, Waseem Maknojiya was involved in a telemarketing scheme via Indian call centers to extort money from victims in the United States. Maknojiya acted as a runner in these schemes, using aliases and fake identification documents to pick up more than 70 parcels containing cash the scheme’s victims had mailed.  

One common script used in the scheme 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 shipped through FedEx to a name and address they provided. Runners in the United States like Maknojiya would then pick up the parcels.

As part of his plea agreement, Maknojiya will pay restitution to the scheme’s identified victims.

U.S. District Judge Lynn N. Hughes accepted the plea and set sentencing for Dec. 13. At that time, Maknojiya faces up to 20 years in prison and a possible $250,000 maximum fine. He will remain in custody pending that hearing. 

The FBI, Social Security Administration - Office of Inspector General (SSA-OIG) and 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. Attorneys Stephanie Bauman and Eun Kate Suh are prosecuting the case.

The SSA consistently warns people of similar scams.

LAREDO, Texas – A 54-year-old resident of Fort Meade, Florida, has been ordered to federal prison after he agreed to drive a tractor-trailer full of undocumented aliens from Laredo to San Antonio, announced Acting U.S. Attorney Jennifer B. Lowery. 

Joseph Winslow pleaded guilty March 5.

Today, U.S. District Judge Marina Garcia Marmolejo ordered Winslow to serve a 72-month sentence to be immediately followed by three years of supervised release.

On Dec. 30, 2020, Winslow arrived at the Border Patrol (BP) checkpoint on Interstate Highway 35 approximately 29 miles north of Laredo. Authorities conducted an X-ray of the trailer he was driving and discovered it was full of people. They ultimately identified a total of 149 undocumented aliens inside.

Winslow agreed to transport the individuals in return for $10,000.

Winslow is currently in custody where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of BP. Assistant U.S. Attorney David Fawcett prosecuted the case.

BROWNSVILLE, Texas – A 35-year-old Brownsville resident has been ordered to federal prison for harboring illegal citizens within the United States, announced Acting U.S. Attorney Jennifer B. Lowery.

Santos De Leon-Cardenas pleaded guilty April 29.

Today, U.S. District Judge Ferando Rodriguez Jr. ordered him to serve a 30-month sentence to be immediately followed by three years of supervised release. In handing down the sentence, Judge Rodriguez noted De Leon-Cardenas harbored 57 non-citizens in crowded and unsanitary conditions.

On March 22, authorities arrived at a hotel room in Brownsville believed to be used to harbor undocumented individuals. They conducted surveillance and were eventually able to apprehend De Leon-Cardenas as well as 57 others, two of whom were unaccompanied minors. De Leon-Cardenas hid them in a single one-bedroom hotel room with little ventilation.

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

Border Patrol and Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of the Cameron County Precinct 2 Constables Office. Assistant U.S. Attorney Edgardo J. Rodriguez prosecuted the case.

LAREDO, Texas – A 53-year-old man has entered a guilty plea to conspiring to transport people unlawfully in the country, announced Acting U.S. Attorney Jennifer B. Lowery

Carl Bernstein, Plainview, New York, admitted to his role in the transportation of 42 undocumented individuals in a commercial trailer out of Laredo to a northern U.S. location.  

On June 6, 2021, local authorities stopped Bernstein for a traffic violation as he was driving a tractor-trailer on State Highway 16 near Tilden. They took him into custody upon learning of active arrest warrants.

He exited the tractor, at which time authorities opened the doors and noticed multiple people inside the trailer. All were identified as non-U.S. citizens unlawfully in the country.

Bernstein admitted he expected to be paid for driving the vehicle.

“This case was just good work by law enforcement boots on the ground from beginning to end - with great cooperation and coordination at the local and federal levels,” said sheriff Emmet Shelton of the McMullen County Sheriff’s Office (MCSO). “This is how it is supposed to work. We would like to thank and recognize our federal partners for their support, work and dedication to helping keep Texas safe.”

U.S. District Judge Marina Garcia Marmolejo set sentencing for Dec. 7. At that time, Bernstein faces up to 10 years in federal prison and a possible $250,000 maximum fine.  

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

MCSO conducted the investigation along with Immigration and Customs Enforcement’s Homeland Security Investigations and Border Patrol. Assistant U.S. Attorney Brian Bajew is prosecuting the case.

LAREDO, Texas – A 46-year-old Dallas resident has been ordered to federal prison for conspiracy to transport 126 undocumented aliens, announced Acting U.S. Attorney Jennifer B. Lowery. 

Jose Luis Ramos Jr. pleaded guilty March 15.

Today, U.S. District Judge Marina Garcia Marmolejo ordered Ramos to serve a 80-month sentence to be immediately followed by three years of supervised release. At the hearing, the court heard additional information including his prior involvement with the smuggling organization, details of the dangerous and reckless nature of the transportation and the number of aliens he attempted to transport. In handing down the sentence, Judge Marmolejo also noted his extensive criminal history and that he was not a minor participant in the conspiracy.

On Jan. 6, Ramos drove a tractor-trailer from Laredo and stopped at a Border Patrol (BP) checkpoint when a service K-9 alerted to the vehicle. Ramos ignored instruction and exited the inspection area, but authorities soon caught and escorted him back to the checkpoint.

A physical inspection revealed a total of 126 individuals inside the trailer, including one unaccompanied minor, from various countries including Mexico, Guatemala, Honduras, Ecuador and El Salvador. Ramos admitted he was hired to drive the tractor trailer from Laredo to San Antonio. During the inspection of the trailer, authorities discovered that the aliens were kept in the sealed trailer with the temperature of 50.7 degrees.

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

Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with assistance from BP. Assistant U.S. Attorney Yoona Lim is prosecuting the case.

HOUSTON – A woman has entered a guilty plea to falsely preparing tax returns following a prior order not to engage in that business, announced Acting U.S. Attorney Jennifer B. Lowery.

Marcia Angella Johnson admitted that since 2016, she had been preparing income tax returns for clients even though she had been prohibited from doing so. During this time, she prepared numerous false returns which claimed various false items on her clients’ behalf. These included false wages, salaries, tips and tax credits such as earned income credit, child tax credits and American opportunity credits.

As a result of her criminal acts, the United States suffered a loss of at least $54,545 in tax revenue. Johnson herself admitted to pocketing between $13,000 and $15,000 after preparing tax returns each year from 2016 through 2019.

Johnson previously admitted to preparing or assisting to prepare approximately 200 false tax returns. In 2011, the court banned her from conducting a tax preparation business.

U.S. District Judge George C. Hanks Jr. accepted the plea and set sentencing for Nov. 16. At that time, Johnson faces up to three years in prison and a possible $100,000 maximum fine. She has also agreed to pay restitution to the IRS.

She was permitted to remain on bond pending that hearing. 

IRS – Criminal Investigation conducted the investigation. Assistant U.S. Attorney Adam Laurence Goldman is prosecuting the case.

HOUSTON – A 47-year-old man will forfeit three real properties and pay a $5 million money judgement for running a multi-million dollar synthetic narcotics distribution network, announced Acting U.S. Attorney Jennifer B. Lowery.

Daniel Bowles, Phoenix, Arizona, pleaded guilty to conspiracy to possess with intent to distribute controlled substances and analogues. He admitted to overseeing call-takers and the operation’s business finances as well as using multiple business entities to conceal the significant amount of its illegal proceeds.

In 2015, authorities began investigating a smoke shop in Laredo. During that time, they discovered a nationwide mail order business that supplied the shop with illegal synthetic cannabinoid products. Call-takers in several states took orders for the products with names such as “Brain Freeze” and “Death Grip” which was delivered to shop owners from California. Payment was set to Arizona, often into accounts Bowles controlled.

During the investigation, authorities tracked payments from multiple retail smoke shops throughout the United States and identified several bank accounts involved in the scheme. Financial records show that from February 2012 through 2019, the network received over $15.4 million in illicit proceeds.

As part of his plea agreement, Bowles also agreed to a money judgment in the amount of $5 million and the forfeiture of three real properties.

U.S. District Judge George Hanks Jr. accepted the plea and set sentencing for Nov. 16. At that time, Bowles faces up to 20 years in prison and a possible $250,000 maximum fine. He was permitted to remain on bond pending that hearing. 

Six others have also pleaded guilty to their involvement in the organization. Ratchanee McAuley, 50, also of Phoenix; Thirawat Athikulrat, 42, and Chuanphit Srithongrung, 44, both of Downey, California; Frank Gonzalez, 60, and Ernesto Salazar, 34, both of Mesa, Arizona; and Don Jessop, 52, Salt lake City, Utah.

McAuley, Athikulrat and Srithongrung each admitted to maintaining warehouses to manufacture the synthetic cannabinoid products. As part of their pleas, Gonzalez and Jessop acknowledged being call-takers, while Salazar admitted to assisting with manufacturing the products and travelling across the county to pick up the proceeds.  

Synthetic cannabinoids are chemical compounds that mimic the psychoactive ingredient in marijuana. These chemical compounds can be applied to carrier mediums such as plant material and ingested using rolling papers, pipes, vaporizers or otherwise taken orally. Synthetic cannabinoids are usually sold in small, foil or plastic bags containing dried leaves (resembling potpourri) and are marketed as incense that can be smoked. It is commonly sold and known on the street as synthetic marijuana, fake weed, legal and by its popular brand names such as Spice, K2, Kush, Klimaxx and many others.

The Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives and FBI conducted the Organized Crime Drug Enforcement Task Forces (OCDETF) investigation dubbed Operation Brain Freeze with the assistance of Texas Department of Public Safety and sheriff’s offices in Zapata County and Maricopa County, Arizona. OCDETF identifies, disrupts and dismantles the highest-level drug traffickers, money launderers, gangs and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage.

Assistant U.S. Attorneys Graciela Lindberg and Lance Watt are prosecuting the case.

HOUSTON – A Texas tax preparer has been ordered to federal prison for aiding and assisting in the preparation of a false U.S. Individual Income Tax Return, announced Acting U.S. Attorney Jennifer B. Lowery.

Tiffany Phenix pleaded guilty April 22.

Judge Morales sentenced her to 15 months in prison to be followed by one year of supervised release. She was further ordered to pay $284,826 in restitution.

“Today’s sentencing is a reminder that honest taxpayers need to be careful when choosing a tax return preparer,” said Special Agent in Charge Richard Goss of IRS - Criminal Investigation (CI). “Phenix Tax Service was in the business of exploiting their clients’ tax returns to defraud the IRS and by extension the tax paying public. Putting abusive return preparers out of business is a top priority for IRS-CI.”

Phenix prepared income tax returns for others at Phenix Tax Service in Alice. As part of her plea, she stipulated she prepared a total of 37 false income tax returns for clients and four false income tax returns for herself, resulting in an intended tax harm to the IRS of over $284,000.

Specifically, Phenix admitted preparing a false 2015 income tax return for a taxpayer which included creating a false form W-2. She also claimed on the return false wage amounts, a false Earned income Tax Credit and a false income tax refund.

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

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

McALLEN, Texas – A San Juan man and woman man have entered a guilty plea to conspiring to harbor nearly 100 individuals illegally in the country, announced Acting U.S. Attorney Jennifer B. Lowery.

The investigation revealed Isaac Livan Martinez, 23, and Gina Alexandria Guzman, 26, had rented rooms at the Krystal Hotel in Pharr. 

On May 13, authorities came to the location for an unrelated investigation. However, hotel staff informed them that they suspected several non-citizens were being housed in various hotel rooms. 

Upon investigation, law enforcement discovered 50 illegal aliens, some of whom were unaccompanied minors. Authorities later reviewed hotel surveillance footage and observed Martinez and Guzman picking up and dropping off the non-citizens at the hotel in a stolen U-Haul truck.

On June 28, authorities apprehended Martinez after a traffic stop. At that time, they observed bulk food and water commonly used during smuggling activity. Martinez provided consent to search his residence in San Juan where authorities discovered 45 undocumented aliens in the residence, also including several unaccompanied minors. 

Some of the harbored individuals identified both Martinez and Guzman as caretakers at the Pharr hotel and the house in San Juan.

U.S. District Judge Micaela Alvarez accepted the plea and set sentencing for Nov. 30. At that time, Martinez and Guzman face up to 10 years in prison and a possible $250,000 maximum fine. Both have been and will remain in custody pending that hearing. 

Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of police departments in Pharr and San Juan. Assistant U.S. Attorney Matthew Redavid is prosecuting the case.

CORPUS CHRISTI, Texas – A 39-year-old Corpus Christi resident has been ordered to federal prison for being a felon in possession of a firearm, announced Acting U.S. Attorney Jennifer B. Lowery.

Francisco Campos pleaded guilty July 21.

Today, U.S. District Judge David S. Morales ordered him to serve a 65-month sentence to be immediately followed by three years of supervised release. At the hearing, the court heard additional evidence that Campos was found in possession of meth, scales and $900 cash at the time of his arrest. 

Campos apologized for “wasting everyone’s time,” explaining that he has spent most of his adult life behind bars. He added that he did not want to be locked up any longer and did not understand why it is illegal for a felon to possess firearms to protect themselves against non-felons who have firearms. 

In handing down the sentence, Judge Morales noted his eight felony convictions, 13 misdemeanors and 10 additional arrests. The court further commented that Campos will eventually get out of prison and it would be up to him to better himself and get the help he needs while incarcerated.

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

However, on Aug. 3, 2020, Campos accidentally shot himself with a firearm while cleaning it at his dining room table. Law enforcement responded to the scene and noted blood splatter on the carpet, walls and curtains of the room. They also saw a gunshot hole that went through a curtain, blinds and a window. 

Campos was found with a 2nd firearm as the result of a traffic stop that occurred Aug. 22, 2020. This incident also involved the seizure of meth, morphine sulfate pills, meth pipes containing residue, two electronic scales and a butane torch.

He was found again Sept. 24, 2020, in a stolen vehicle. Authorities discovered a firearm under Campos in the passenger seat. It had one round loaded in the chamber.

Campos 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 Texas Department of Public Safety and the Corpus Christi Police Department. Assistant U.S. Attorney Amanda L. Gould prosecuted the case.

The case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In late 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.

BROWNSVILLE, Texas - A 29-year-old Mexican national has been ordered to federal prison for possessing hundreds of images and videos of child pornography, announced Acting U.S. Attorney Jennifer B. Lowery.

Luis Felipe Salazar-Sanchez pleaded guilty May 5.

Today, U.S. District Judge Rolando Olvera ordered him to serve a 70-month-term of imprisonment to be immediately followed by 10 years of supervised release. Not a U.S. citizen, he is expected to face removal proceedings following the sentence. The court considered statements from seven victims describing the trauma they have endured. In handing down the prison term, Judge Olvera additionally ordered Salazar-Sanchez to pay  $9,000 in restitution which will be divided equally amongst victims who requested restitution.

The investigation revealed Salazar-Sanchez had been purchasing child pornography. On Oct. 20, 2019, authorities suspected he was going to attempt to enter the United States from Mexico.

As he approached the Gateway Port of Entry in Brownsville, law enforcement identified him and referred him to secondary inspection. There, they conducted a search of his cellphone. Forensic analysis resulted in the discovery of nearly 600 images and videos of child pornography including numerous images depicting prepubescent minors and sadistic and masochistic conduct.

Salazar-Sanchez 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 - Rio Grande Valley Child Exploitation Investigation Task Force conducted the investigation with the assistance of Customs and Border Protection.

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

LAREDO, Texas – A 24-year-old Laredo woman has entered a guilty plea to conspiracy to possess with intent to distribute cocaine, announced Acting U.S. Attorney Jennifer B. Lowery.

Between March 1 and April 1, 2019, in Laredo, Karla Yvonne Lozano conspired with others to deliver cocaine totaling approximately 21 kilograms.

On March 1, 2019, Lozano delivered 10 bundles of cocaine weighing approximately 10.55 kilograms at a parking lot near Kohl’s in Laredo. The following month, she again delivered more bundles of cocaine then at a local Wal-Mart. The second set weighed approximately 11.25 kilograms.

U.S. District Judge Marina Garcia Marmolejo accepted the plea and set sentencing for Dec. 7. At that time, Lozano faces up to life in prison and a possible $10 million maximum fine. She was permitted to remain on bond pending that hearing. 

Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney José Angel Moreno is prosecuting the case.

CORPUS CHRISTI, Texas – A 21-year-old Penitas man has been ordered to federal prison for possessing with the intent to distribute 150 pounds of pure meth, announced Acting U.S. Attorney Jennifer B. Lowery.

Kevin Rangel-Sanchez pleaded guilty April 1.

Today, U.S. District Judge Drew B. Tipton ordered him to serve a 90-month sentence to be immediately followed by five years of supervised release. In handing down the sentence, Judge Tipton noted Rangel-Sanchez’s youth and lack of criminal history, while noting the need for a significant prison sentence to reflect the seriousness of the offense.   

On Nov. 30, 2020, Rangel-Sanchez drove a truck into the Border Patrol (BP) checkpoint located near Falfurrias. Authorities noticed that he appeared to be nervous and referred the vehicle to the secondary inspection area for an X-ray examination.

There, they observed anomalies in the vehicle’s tires and cut into them. That resulted in the discovery of steel boxes that had been welded around the rims inside the tires. Those  boxes were found to contain 24 foil-wrapped packages of meth weighing a total of 71 kilograms.

The drugs had an estimated street value of more than $5.2 million.

Rangel-Sanchez 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 Border Patrol. Assistant U.S. Attorney Robert D. Thorpe Jr. prosecuted the case.

LAREDO, Texas – Two men who resided in Laredo, one illegally, have entered guilty pleas to possession of a firearm and ammunition by a prohibited person, announced Acting U.S. Attorney Jennifer B. Lowery.

Hector Fernando Rodriguez-Neri, 20, is a Mexican citizen unlawfully in the United States. Gaona, 26, is a convicted felon. As such, they are both prohibited from possessing a firearm or ammunition per federal law.  

However, on March 31, Rodriguez-Neri and Gaona were in possession of a semi-automatic rifle and ammunition which they sold to undercover authorities for $1,300. Rodriguez-Neri also admitted to selling two machine guns, one of which had an obliterated serial number on April 27 and May 7 for a total of $5,600.

Both pleaded guilty to possession of a firearm and ammunition by a prohibited person. Rodriguez-Neri also admitted to five additional counts of possession of a firearm by a prohibited person, two counts of transferring a machine gun and possession of a firearm with an obliterated serial number. 

U.S. District Judge Marina Garcia Marmolejo has set sentencing for Dec. 7. At that time, Both men face up to 10 years in prison and a possible $250,000 maximum fine. Rodriguez-Neri’s other convictions carry the same penalties, but he also faces up to five years for the possession count involving an obliterated serial number.  

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

The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorney José Angel Moreno is prosecuting the case.

LAREDO, Texas – A 51-year-old resident of Hendersonville, North Carolina, has been ordered to federal prison for importing meth through Laredo, announced Acting U.S. Attorney Jennifer B. Lowery.  

Deanne Burkhart Bautista pleaded guilty Aug. 4.

Today, U.S. District Judge Marina Garcia Marmolejo ordered her to serve a 120-month sentence to be immediately followed by five years of supervised release.

On June 3, 2020, Bautista attempted to enter the United States at the Juarez-Lincoln Bridge in Laredo. Upon her arrival, a law enforcement query resulted in the discovery that she might be transporting narcotics. A follow-up X-ray examination yielded anomalies in her luggage.

Authorities ultimately found a total of 5.5 kilograms of meth with an estimated street value of $27,000

Bautista admitted she was aware there were drugs in her luggage. She expected to be paid in cash, drugs or both upon final delivery to Atlanta, Georgia.

Bautista 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 and Drug Enforcement Administration. Assistant U.S. Attorney Brian Bajew prosecuted the case.

McALLEN, Texas – A 20-year-old McAllen resident has been ordered to federal prison for his role in a meth conspiracy, announced Acting U.S. Attorney Jennifer B. Lowery.

Jose Edmundo Corona pleaded guilty June 3.

Today, U.S. District Judge Randy Crane ordered him to serve a 168-month sentence to be immediately followed by five years of supervised release. In handing down the sentence, Judge Crane noted Corona’s role in the conspiracy.

Between September and October 2020, authorities intercepted multiple FedEx packages destined for Houston, Dallas and Atlanta at their shipping center in Pharr. All of the parcels packages were shipped in identical boxes with similar packaging styles. A search ultimately revealed a total of 45 kilograms of crystal meth.

Surveillance footage determined Corona was the individual who placed the packages for delivery at various mailing centers throughout the Rio Grande Valley as well as paid for the shipping costs. Fingerprint analysis helped to determine Corona not only mailed the packages but also prepared the narcotics within the packages.

The drugs had an estimated street value of $300,000.

Corona 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. Assistant U.S. Attorney Laura M. Garcia prosecuted the case.

BROWNSVILLE, Texas – An 18-year-old Brownsville man has been ordered to federal prison for possessing nearly 10,000 of images and videos of child pornography, announced Acting U.S. Attorney Jennifer B. Lowery.

Irbenis Mederos Jr. pleaded guilty April 27.

Today, U.S. District Judge Fernando Rodriguez ordered him to serve a 168-month sentence to be immediately followed by 10 years of supervised release. The court considered statements from many victims describing the trauma they’ve endured. In handing down the sentence, Judge Rodriguez additionally ordered that $36,000 in restitution be paid and divided equally amongst the 12 victims who requested restitution.

On Sep. 28, 2020, authorities discovered the sexual exploitation of a minor child via social media. It was determined she was an eight-year-old U.S. citizen residing in Panama.

The investigation led to an IP address in Brownsville belonging to Mederos. Law enforcement conducted a search at his residence and seized a cellphone. Forensic analysis resulted in the discovery of 1,229 images and 110 videos of child pornography, approximately 55 of which were of the minor female in Panama. Several others also depicted child pornography involving infants and toddlers.

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

Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Panama conducted the investigation along with HSI-Rio Grande Valley Child Exploitation Investigation Task Force.

Assistant U.S. Attorney Nikki Piquette 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 tab on that page. 

HOUSTON – A 26-year old Houston man has been arrested in connection with a string of mail thefts occurring recently in the Memorial Drive area of the city, announced Acting U.S. Attorney Jennifer B. Lowery.

A criminal complaint charges Tony Morris Jr. with theft of mail and bank fraud. Authorities took him into custody today. He is scheduled to make his initial appearance before U.S. Magistrate Judge Peter Bray.

Checks worth $497,335.53 had allegedly been stolen from a U.S. Postal Service collection box located on the 12500 block of Memorial Drive in Houston. The charges allege vehicles linked to Morris were observed at the location on approximately nine occasions and believed to be associated with the thefts.

Morris allegedly cashed checks stolen from the collection box on three occasions. 

If convicted, he faces up to 30 years in federal prison and a $1 million maximum.

The U.S. Postal Inspection Service conducted the investigation with the assistance of police departments in Memorial Village Hedwig Village.

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