Southern District of Texas

BROWNSVILLE, Texas – A 47-year-old Brownsville resident has been handed a lengthy federal prison sentence for possession of child pornography, announced Acting U.S. Attorney Jennifer B. Lowery.

Chance Wallace pleaded guilty Sep. 26, 2019.

Today, U.S. District Judge Fernando Rodriguez Jr. ordered him to serve 180 months in prison. The sentence will be immediately followed by eight years of supervised release during which he will have to comply with numerous requirements designed to restrict his access to children and the internet. He has also been ordered to register as a sex offender. At the hearing, the court considered statements of various victims describing how Wallace’s actions caused them continued harm. In handing down the prison term, Judge Rodriguez noted the seriousness of the offense and the need to protect the public from Wallace’s conduct.

In Oct. 2015, authorities launched an investigation targeting child pornography sharing on the internet. That led them to Wallace. The following month, they conducted a search at the residence and seized his computer and an external hard drive. Forensic analysis on the computer later revealed approximately 525 images and 497 videos of child pornography.

Wallace 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 Task Force conducted the investigation.

Assistant U.S. Attorneys Ana C. Cano, Jason Corley and Joe Esquivel 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.

BROWNSVILLE, Texas – A 68-year-old Mexican man has been sentenced after trying to cross the border with over 60 kilograms of meth, announced Acting U.S. Attorney Jennifer B. Lowery.

Benjamin Garcia-Alcantar, Morelia, Michoacan, Mexico, pleaded guilty Oct. 22, 2020, to possession with intent to distribute meth.

Today, U.S. District Judge Fernando Rodriguez Jr. handed him a 120-month sentence to be immediately followed by four years of supervised release. In handing down the sentence, the court noted Garcia-Alcantar’s age and lack of criminal history.

On May 16, 2020, Garcia-Alcantar had attempted to make entry into the United States via the Veteran’s International Bridge driving a 2007 GMC Sierra. The truck had a business decal displaying an American flag with both a Matamoros, Mexico, and Mission address. Garcia-Alantar claimed he had a business called “Good Been-Second-hand articles” and was bringing in an 8-foot medieval knight armor statue for resale. He added that he had been selling the medieval knights in Mission.  

Authorities recalled a similar knight on a bed of a truck that had crossed on a previous occasion and sent him for further inspection. At secondary, law enforcement found 24 bundles enclosed in metal containers. They had been welded into the interior of the vehicle’s tires.

Authorities had to call a hazardous materials team to extract the narcotics.

The bundles held 62.44 kilograms of meth with an estimated street value of more than $1.8 million in Texas.

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

Immigration Customs Enforcement conducted the investigation with the assistance of Customs Border Protection. Assistant U.S. Attorney Elena Llanos-Salinas prosecuted the case.

LAREDO, Texas – A 48-year-old Laredoan has been ordered to federal prison for attempting to illegally export firearms and ammunition to Mexico, announced Acting U.S. Attorney Jennifer B. Lowery. 

Juan Antonio Cepeda pleaded guilty Jan. 4.

Today, U.S. District Judge Diana Saldana ordered Cepeda to serve a 41-month sentence to be immediately followed by three years of supervised release. In handing down the sentence, Judge Saldana noted Cepeda had a lengthy criminal history and a long struggle with drug addiction.

On Sept. 14, 2020, Cepeda was traveling on Interstate Highway 35, when authorities conducted a traffic stop on his vehicle. Inside, they found 14 firearms and over 20,000 rounds of ammunition.

Cepeda admitted to knowingly attempting to export ammunition to Mexico for the promise of $2,000 payment.

Cepeda 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 and the Bureau of Alcohol, Tobacco, Firearms and Explosives jointly conducted the investigation with the Texas Department of Public Safety and Laredo Police Department. Assistant U.S. Attorney Francisco J. Rodriguez prosecuted the case.

HOUSTON - The former governor of Tamaulipas, Mexico, has admitted he accepted over $3.5 million in illegal bribe money and used it to fraudulently purchase property in the United States, announced Acting U.S. Attorney Jennifer B. Lowery.

Tomas Yarrington Ruvalcaba, 64, was also a former candidate for president of Mexico. Today, he admitted to a charge of conspiracy to commit money laundering in a pay to play type of scheme.

As part of the plea, Yarrington admitted he accepted bribes from individuals and private companies in Mexico to do business with the state of Tamaulipas while he served as governor. Yarrington was in that position from 1999 to 2005. He was also an Institutional Revolutionary Party candidate for president of Mexico in 2005.

Yarrington used the bribery money he received while governor to purchase properties in the United States. He had prestanombres - nominee buyers -  purchase property in the United States to hide Yarrington’s ownership of the properties and the illegal bribery money used to purchase them.

Yarrington admitted one of the illegally purchased properties was a condominium in Port Isabel. He also acknowledged he knew it was against the law in Mexico to take the bribes and to hide the over $3.5 million in illegal bribe money in the United States by buying real estate, cars and other personal items.

U.S. District Judge Hilda G. Tagle accepted the plea and will set sentencing at  a later date. At that time, Yarrington faces up to 20 years in federal prison. He has also agreed to forfeit the Port Isabel condominium.

In April 2017, authorities captured Yarrington in Italy while traveling under an assumed name and false passport and other identification documents. He was taken into custody on a provisional arrest warrant based on the indictment returned in May 2013. Although Yarrington contested extradition, Italian authorities eventually authorized his extradition to the United States. He arrived in April 2018 where he has remained in custody.

Homeland Security Investigations (HSI) led the Organized Crime Drug Enforcement Task Force (OCDETF) operation dubbed Operation Green Tide with the assistance of IRS – Criminal Investigation, Drug Enforcement Administration, FBI and Texas Attorney General’s Office. It included agents and officers in Brownsville, San Antonio, Houston, Corpus Christi and New York. The Justice Department’s Office of International Affairs handled the extradition in this matter. The U.S. government also acknowledges with gratitude the significant assistance received from the government of Mexico in the course of this investigation. Additionally, the United States acknowledges the assistance of the U.S. Marshals Service, HSI-Rome, HSI-Mexico City, the Italian Ministry of the Interior (particularly Interpol Rome and the Central Operations Service of the Italian National Police) and the Italian Ministry of Justice in Yarrington’s extradition.

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

Assistant U.S. Attorneys Jody Young, Jon Muschenheim and Karen Betancourt are prosecuting the case.

CORPUS CHRISTI, Texas – A 24-year-old Corpus Christi man has admitting to sending videos depicting the sexual exploitation of children, announced Acting U.S. Attorney Jennifer B. Lowery.

In August 2020, authorities had linked Krystian Dari Ayala to a Discord account found to be sending child pornography. Discord is an application where users can chat, send pictures and videos to others and allows them to join chat rooms for specific topics.

The investigation resulted in a search of Ayala’s Discord account. It confirmed he had sent videos of child pornography to other Discord users. The investigation led authorities to Corpus Christi residence where they conducted a search and seized numerous electronic devices, some of which contained child pornography.

Ayala admitted he had utilized his cellphone to access the Discord application to distribute child pornography, some of which depicted the sexual abuse of infants and toddlers.

Sentencing has been set for June 16 before U.S. District Judge Nelva Gonzales Ramos. At that time, Ayala faces a mandatory minimum of five and up to 20 years in federal prison as well as a possible $250,000 maximum fine.

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

The Washington State Police, Corpus Christi Police Department Internet Crimes Against Children Task Force and Homeland Security Investigations conducted the investigation.

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

GALVESTON, Texas – Seven members of a local drug distribution ring will now face federal charges for the preparation and sale of cocaine base to residents of La Marque and Texas City, announced Acting U.S. Attorney Jennifer B. Lowery.  

Authorities arrested Smith Henry Jones, 40, and wife Lekisha Marie Jones, 42, both of Houston; and Harold Damon Brown, 43, and Dejon Nicole Thomas, 38; both of La Marque, today. They are expected to make their initial appearances before U.S. Magistrate Judge Sam Sheldon in Houston as early as 2 p.m. today.

Latoya Vonea Worthy, 30, La Marque, is also charged. Shane Alan Flores, 39, League City, was previously in custody and appeared via Zoom today. He is set for a detention hearing before U.S. Magistrate Judge Andrew Edison March 29 at 2 p.m. Ronnie LaShawn Allen, 41, Hitchcock; was also in custody and will be transferred to face the charges in this indictment in the near future.

A federal grand jury returned the seven-count indictment under seal March 16, which was unsealed today. It alleges all seven individuals conspired to possess with intent to distribute cocaine powder and crack between Feb. 16, 2017, and Feb. 26, 2019. Five of the counts allege Allen and Thomas possessed with intent to distribute either cocaine or crack. The Joneses are also charged with conspiracy to commit money laundering.  

All face a minimum of 10 years and up to life in federal prison as well as a possible $10 million maximum fine if convicted in the conspiracy. Those charged with the substantive drug counts could also receive up to 20 years and another $1 million maximum fine. The money laundering conspiracy carries a potential punishment of 20 years and a fine not to exceed $500,000 or twice the value of the property involved in the transaction.

The FBI conducted the investigation as part of the Coastal Safe Streets Task Force with the assistance of the LaMarque Police Department. Assistant U.S. Attorney Kenneth Cusick is prosecuting this case.

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

McALLEN, Texas – A 46-year-old Edinburg resident has been ordered to federal prison for conspiring to harbor illegal aliens and possessing a firearm as a convicted felon, announced Acting U.S. Attorney Jennifer B. Lowery.

Noe Garza pleaded guilty Nov. 2, 2020.

Today, U.S. District Judge Micaela Alvarez ordered Garza to serve a total of 63 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the court heard additional information related to his criminal record to include prior convictions for aggravated assault and aggravated robbery. In handing down the sentence, Judge Alvarez noted Garza had been breaking the law since he was 17. She added that she was particularly troubled Garza committed these crimes while having a pending alien transportation case from 2016 and failed to appear for sentencing.

On Feb. 28, 2020, law enforcement conducted a traffic stop on Garza, but he fled the scene. Authorities soon apprehended him, at which time he admitted to being the caretaker of a stash house in Edinburg and helping coordinate transportation of illegal aliens further north. A search of the residence revealed five illegal aliens and two firearms. Law enforcement also found an additional firearm in the area of the traffic stop. Garza took ownership of all three firearms.

As a previously convicted felon, federal law prohibits him of possessing firearms or ammunition.  

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

Immigration and Customs Enforcement’s Homeland Security Investigations and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation with the assistance of the Edinburg Police Department. Assistant U.S. Attorney M. Alexis Garcia prosecuted the case.

CORPUS CHRISTI, Texas – A 38-year-old Coastal Bend woman has been ordered to federal prison for a conspiracy to distribute 243 grams of meth, announced Acting U.S. Attorney Jennifer B. Lowery.

Jennifer Saldana pleaded guilty June 17, 2020. 

Today, U.S. District Judge Nelva Gonzales Ramos sentenced Saldana to serve an 84-month sentence to be immediately followed by five years of supervised release. 

On May 30, 2019, Saldana and Willie James Sorrell III traveled on a Greyhound bus from McAllen to the Corpus Christi area. At the Border Patrol checkpoint near Falfurrias, authorities discovered a backpack near Sorrell’s feet that contained nearly 250 grams of meth and a firearm. 

The investigation revealed Sorrell and Saldana had traveled from Corpus Christi to the Rio Grande Valley to obtain distribution amounts of meth.

Sorrell, 48, Corpus Christi, was previously sentenced to more than 10 years in federal prison.

Saldana 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 along with Customs and Border Protection and Texas Department of Public Safety. Assistant U.S. Attorney Reid Manning prosecuted the case. 

LAREDO, Texas – A 46-year-old Laredo resident has been charged for stealing money from an automobile financing company through a kickback and accounting fraud scheme, announced Acting U.S. Attorney Jennifer B. Lowery.

Authorities arrested Roberto Montiel today. He is expected to make his initial appearance before a U.S. magistrate judge at 1:30 p.m. tomorrow in Laredo.

A federal grand jury returned the 12-count indictment March 18 which was unsealed today. It alleges Montiel misused his position as general manager of the company to sell vehicles that the company had repossessed. He allegedly sold them at prices below their market value in exchange for receiving a kickback from the buyer.

According to the indictment, Montiel also entered false information into the company’s accounting system and manipulated accounting records to inflate the company’s profitability and assets. This allegedly enabled him to hide the losses his scheme caused. He also allegedly received bonuses and commissions he was only entitled to receive if the company was profitable.

If convicted, Montiel faces up to 20 years in prison and a possible $250,000 maximum fine on each count of conviction.

The FBI conducted the investigation. Assistant U.S. Attorney Justin R. Martin is prosecuting the case.

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

HOUSTON – Authorities are seeking potential victims following the arrest of a 32-year-old Spring man on federal civil rights violations, announced Acting U.S. Attorney Jennifer B. Lowery.

Lee Ray Boykin Jr. is a former State Trooper with the Texas Department of Public Safety. The criminal complaint, filed today, alleges he deprived two separate victims of their right to bodily integrity. He is also charged with carrying and using a firearm during a crime of violence as well as destruction, alteration or falsification of records in a federal investigation.

Boykin is expected to make his initial appearance before U.S. Magistrate Judge Sam S. Sheldon at 2 p.m. today.   

The complaint alleges that on Aug. 7, 2020, Boykin conducted a traffic stop near an Express Inn at 9025 North Freeway in Houston. After issuing the driver a written warning, Boykin allegedly ordered the passenger to get into his patrol car. The charges allege he then drove her to a back parking lot at 10700 North Freeway and parked near a dumpster. There, he threatened to take the victim to jail for an out-of-state warrant if she did not perform oral sex on him, according to the complaint. She allegedly feared for her life and safety and obeyed Boykin’s commands. Following the sex act, Boykin placed his hand on his weapon and ordered her to run, according to the charges. 

The investigation revealed there had been a second victim, according to the complaint. On Aug. 3, 2020, Boykin had allegedly pulled up behind a vehicle parked at a Texaco gas station at 9404 North Freeway in Houston. He told the passenger she had outstanding warrants and said he was taking her to a substation, according to the charges. He then allegedly ordered her into his vehicle and drove her to the same back parking lot at 10700 North Freeway. The complaint alleges Boykin told her he knew what she did for a living and wanted some of it - meaning sex. Fearing Boykin, she complied with his demands and performed oral sex on him, according to the charges.    

If convicted, he faces up to life in prison.

Authorities believe there may be other victims. Anyone with information about potential additional victims is asked to contact the FBI at 713-693-5000.

The Houston Police Department, Texas Rangers and FBI are conducting the investigation. Assistant U.S. Attorneys Sebastian Edwards and Eun Kate Suh are prosecuting the case.

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

CORPUS CHRISTI, Texas – A 44-year-old resident of Corpus Christi has been ordered to prison after admitting her role in a federal drug scheme, announced Acting U.S. Attorney Jennifer B. Lowery.

Katrina Kelly pleaded guilty Nov. 19, 2020.

Today, U.S. District Judge David S. Morales ordered her to serve a 96-month sentence to be immediately followed by three years of supervised release. At the hearing, the court heard additional information describing Kelly's drug trafficking after previously earning a master's degree in social work and serving as a rehabilitation program specialist for a methadone clinic with Texas Health and Human Services. In handing down the sentence, Judge Morales noted Kelly's continued criminal conduct even while on bond in two federal cases.

In April 2020, Kelly was involved in a conspiracy with others to possess with intent to distribute kilograms of meth. She negotiated terms of the sale or distributed the meth from a residence in Corpus Christi. Laboratory analysis later positively confirmed the substance linked to her was meth.

Previously released on bond, Kelly was later taken into custody after violating the terms of her bond conditions. She 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 Texas Department of Public Safety and police departments in Kingsville and Corpus Christi. Assistant U.S. Attorney Reid Manning prosecuted the case.

HOUSTON – A federal grand jury sitting in Houston has returned a superseding indictment against five Honduran nationals in a bank fraud conspiracy, announced Acting U.S. Attorney Jennifer B. Lowery.

Angel Javier Contreras Melara, 44, Bayron Rolando Guzman Yanez, 28, Elvin Lioile Rivas, 22, Hoffman Ramon Osorio Gallardo, 29, and Jonathan Arreaga Camey, 35, are charged with conspiracy to commit bank fraud, bank fraud, possession of stolen mail and aggravated identity theft. All but Camey were illegally residing in Houston. Camey is a legal permanent resident of Houston but could lose his status if convicted.

Melara and Rivas are currently in custody. The remaining three were permitted release pending further criminal proceedings. All are expected to appear for their arraignments on the charges in the superseding indictment before a U.S. magistrate judge in the near future.   

The 17-count indictment alleges multiple mail thefts throughout the Greater Houston area beginning in mid-2019 and continuing through the end of 2020. The conspirators would allegedly look for checks within the stolen mail and alter them to deposit into accounts the conspirators controlled.

If convicted, the defendants face up to 30 years in prison for the conspiracy and bank fraud counts and five years if convicted of the mail theft. They also face an additional and mandatory two years for the aggravated identity theft counts which must be served consecutively to any other prison term imposed.  

The U.S. Postal Inspection Service conducted the investigation with the assistance of police departments in Meadows Place, Houston and Sugar Land. Assistant U.S. Attorney Christine Lu is prosecuting the case.

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

HOUSTON – A former officer with the Houston Police Department (HPD) has been ordered to prison after admitting her guilt in a Houston-area cocaine conspiracy, announced Acting U.S. Attorney Jennifer B. Lowery.

Julissa Diaz, 41, Houston, pleaded guilty Jan. 16, 2020, to conspiracy to possess with the intent to distribute cocaine. At that time, she admitted she stopped a vehicle containing cocaine and arrested the occupant to allow others to steal the drugs.

Today, U.S. District Judge Gray Miller ordered her to serve an 87-month sentence to be immediately followed by three years of supervised release.

Diaz is no longer employed with HPD.  

“Julissa Diaz used her position as a sworn police officer to commit these crimes. When she participated in the drug trafficking conspiracy, she violated a sacred oath, as well as the trust our city placed in her,” stated Drug Enforcement Administration (DEA) Special Agent in Charge Daniel C. Comeaux. “Each day, the overwhelming majority of law enforcement officers place their lives on the line to protect our communities, while upholding the trust of a nation, and stand firmly against those few who would tarnish our badge.”

In early November 2018, Carlos Campos identified a potential drug courier and provided that information to Jesse Holt, a tow truck driver. Holt passed the information Ricardo Diaz – the then husband of Julissa Diaz - who gave it to his wife and asked her to conduct the illegal stop.  

On Nov. 8, 2018, Julissa Diaz stopped and arrested the occupant who was actually an undercover officer posing as the drug courier. The vehicle contained eight kilograms of cocaine. Julissa Diaz deliberately left the drugs in the car so the co-conspirators could then steal it. Holt was stationed nearby and towed the car away.   

Ricardo Diaz - her now ex-husband, 46, Campos, 35 and Holt, 46, all of Houston, also pleaded guilty. Campos later received an 87-month sentence, while Ricardo Diaz was sentenced to 108 months. Holt was ordered to serve a 42-month term of imprisonment. All of the sentences will be immediately followed by five years of supervised release.

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

The DEA and HPD conducted the investigation. Assistant U.S. Attorneys Craig Feazel and John Jocher prosecuted the case.    

LAREDO, Texas – A 23-year-old Houston resident has been indicted for conspiracy and importation of 50 grams or more of meth, announced Acting U.S. Attorney Jennifer B. Lowery.

The federal grand jury in Laredo returned the two-count indictment against Mike Mendoza today. He is expected to appear for his arraignment before U.S. Magistrate Judge Diana Song Quiroga in the near future.

The criminal complaint originally filed in the case alleges Mendoza and others conspired to import more than one kilogram of meth in the tires of a Ford F-150.  

On Feb. 25, Mendoza allegedly arrived at the Lincoln Juarez Bridge in Laredo driving the truck. Law enforcement detected anomalies in the tires and soon found 24 bundles of meth, according to the charges.

They allegedly had a total combined weight of 60.04 kilograms with an estimated street value of $360,000.  

If convicted, Mendoza faces up to life in prison and a possible $10 million maximum fine.

Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Adam E. Harper is prosecuting the case.

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

HOUSTON – The former owner and sole shareholder of The Shape of Behavior (TSOB), a Texas-based provider of therapy services for children with autism, has agreed to pay to resolve allegations that the company submitted improper claims to the TRICARE program, announced Acting U.S. Attorney Jennifer B. Lowery. 

Dr. Domonique Randall, 45, Spring, has now paid a total of $2,729,083.23.

TRICARE is an entitlement program for uniformed service members, retirees and their families around the world.

Authorities initiated an investigation after TRICARE’s managed care support contractor - Humana Military Program Integrity – uncovered alleged improper claims. These were for applied behavior analysis therapy to beneficiaries with autism spectrum disorder.

Today’s settlement resolves allegations that nine separate TSOB locations submitted claims to TRICARE that misrepresented the identity of the actual rendering providers, that medical records could not substantiate or when individual providers billed excessive hours on individual dates of service.  

“The welfare of our service members and the extended Department of Defense (DoD) family is of vital importance to the DoD Inspector General,” said Acting Special Agent in Charge Gregory P. Shilling of the Defense Criminal Investigative Service’s (DCIS) Southwest Field Office. “This resolution is a testament to the collaboration between the DCIS and our partners in ensuring TRICARE beneficiaries receive the highest level of care from health care providers while also ensuring those providers are being stewards of valuable taxpayer resources.”

The Defense Health Agency - Office of Program Integrity, DCIS and Humana Military Program Integrity all assisted in the joint investigation resulting in the settlement announced today. Assistant U.S. Attorney Kenneth Shaitelman handled the matter on behalf of the United States.

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

A dual U.S.-Venezuelan citizen and former official at Citgo Petroleum Corporation, a Houston-based subsidiary of Venezuela’s state-owned and state-controlled energy company Petróleos de Venezuela S.A. (PDVSA), pleaded guilty Monday in connection with his role in laundering millions of dollars in bribes and corruptly providing business advantages to multiple individuals who obtained contracts with Citgo and PDVSA.

According to court documents, between approximately 2013 and 2019, Jose Luis De Jongh Atencio (De Jongh), 48, a former procurement officer and manager in Citgo’s Special Projects Group, accepted more than $7 million in bribe payments from businessmen including Jose Manuel Gonzalez Testino (Gonzalez), a dual U.S.-Venezuelan citizen, and Tulio Anibal Farias Perez (Farias), a Venezuelan national and Houston resident, and others in exchange for assisting the businessmen and related companies in procuring contracts with Citgo, and providing them with other business advantages.

De Jongh admitted to directing bribe payments from Gonzalez, Farias, and others into bank accounts in the names of shell companies that he controlled in Panama and Switzerland. In some instances, he also directed the creation of fake invoices to justify the payments. De Jongh laundered the bribe proceeds through U.S. and international bank accounts and used the funds to purchase real property located in the Houston area. In addition to monetary payments, De Jongh also received bribes in the form of gifts and other things of value from Gonzalez, Farias, and others including tickets to a 2014 World Series Game, Super Bowl XLIX in 2015, and a U2 concert. Gonzalez and Farias also entered guilty pleas in connection with the case.

“Jose Luis De Jongh Atencio accepted millions of dollars in bribe payments — placing law-abiding individuals and companies at a competitive disadvantage — and then laundered those bribe payments into the United States to fund his lavish lifestyle,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “This guilty plea demonstrates the commitment of the department and our law enforcement partners to hold accountable individuals who engage in corruption and use our financial system to promote and launder the proceeds of their crimes.”

“Foreign bribery schemes like this pose a significant threat to the public trust and fair-trade practices,” said Special Agent in Charge Mark Dawson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Houston. “This plea is a step in the right direction, but we will continue to level the playing field for companies and consumers by aggressively investigating individuals and corporations who violate the FCPA and misuse our financial system.”

De Jongh pleaded guilty to one count of conspiracy to commit money laundering. He is scheduled to be sentenced by U.S. District Judge Gray H. Miller on Aug. 19, and faces a maximum penalty of 20 years in prison. Judge Miller will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. In addition, as part of his plea, De Jongh also agreed to forfeit over $3 million seized from his bank accounts and 15 properties that he purchased with his corrupt proceeds.

To date, the Justice Department has announced charges against 28 individuals, 22 of whom have pleaded guilty, as part of a larger, ongoing investigation by the U.S. government into bribery at PDVSA.

HSI Houston is conducting the ongoing investigation with assistance from HSI Boston and Miami.

Trial Attorney Sarah E. Edwards and Assistant Chief Sonali D. Patel of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Robert S. Johnson and John P. Pearson of the U.S. Attorney’s Office for the Southern District of Texas are prosecuting the case. Assistant U.S. Attorney Kristine E. Rollinson is handling the forfeiture aspects of the case.

The Justice Department’s Office of International Affairs, the Swiss Federal Office of Justice and the Office of the Attorney General of Panama also provided assistance.

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

HOUSTON – A 25-year-old Houston resident has been handed a lengthy federal prison sentence after robbing a Five Guys restaurant and shooting an off-duty law enforcement officer, announced Acting U.S. Attorney Jennifer B. Lowery.

Keith Thomas pleaded guilty Sept. 24, 2020, to interference with commerce by robbery and discharging a firearm during or in relation to that robbery.

Today, Chief U.S. District Lee H. Rosenthal handed Thomas an 87-month sentence for the robbery. He also received an additional 120 months for the firearms charge which must be served consecutively to the other prison term  imposed. The sentences will be immediately followed by five years of supervised release. At the hearing, the court heard additional evidence that detailed the victim’s injuries, continuing impairment and hospital stay. Judge Rosenthal noted that what Thomas did that day was evil and caused extreme trauma to many.

“The men and women of our local law enforcement continue to put themselves in harm’s way each and every day,” said Special Agent in Charge Fred Milanowski of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). “ATF will continue to fight firearms related violent crime alongside our partner agencies and keep our community safe for our neighbors.”

On Oct. 16, 2019, Thomas entered the Five Guys restaurant located at 2902 Shepherd Drive in Houston with a firearm. There, Thomas pointed the weapon at customers and employees and demanded money. He was able to steal cash from the cash register and from patrons.

Prior to exiting the restaurant, Thomas discharged his firearm, striking a Harris County constable who was approaching the door. The officer was off official duty with Harris County Precinct 5, but working security at the location. Thomas then fled the scene.  

Law enforcement found a cellphone near the restaurant which was eventually traced to Thomas. 

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 Houston Police Department and ATF conducted the investigation. Assistant U.S. Attorney Jill Stotts prosecuted the case. 

HOUSTON - A dual U.S.-Venezuelan citizen and former official at Citgo Petroleum Corporation has pleaded guilty for his role in laundering millions of dollars in bribes and corruptly providing business advantages.

Citgo is a Houston-based subsidiary of Venezuela’s state-owned and state-controlled energy company Petróleos de Venezuela S.A. (PDVSA),.

Jose Luis De Jongh Atencio (De Jongh), 48, was the former procurement officer and manager in Citgo’s Special Projects Group. According to court documents, between approximately 2013 and 2019, he accepted over $7 million in bribe payments in exchange for assisting businessmen and related companies in procuring contracts with Citgo. De Jongh also provided them with other business advantages.

Two included Jose Manuel Gonzalez Testino (Gonzalez), a dual U.S.-Venezuelan citizen, and Tulio Anibal Farias Perez (Farias), a Venezuelan national and Houston resident.

De Jongh admitted to directing bribe payments from Gonzalez, Farias and others into bank accounts in the names of shell companies he controlled in Panama and Switzerland. In some instances, he also directed the creation of fake invoices to justify the payments. De Jongh laundered the bribe proceeds through U.S. and international bank accounts and used the funds to purchase real property located in the Houston area. In addition to monetary payments, De Jongh also received bribes in the form of gifts and other things of value from Gonzalez, Farias and others including tickets to a 2014 World Series Game, Super Bowl XLIX in 2015, and a U2 concert. 

Gonzalez and Farias also entered guilty pleas in connection with the case.

De Jongh pleaded guilty today to one count of conspiracy to commit money laundering. U.S. District Judge Gray H. Miller accepted the plea and has set sentencing for Aug. 19. At that time, De Jongh faces up to 20 years in prison.

As part of his plea, De Jongh also agreed to forfeit over $3 million seized from his bank accounts and 15 properties he purchased with his corrupt proceeds.

To date, the Justice Department has announced charges against 28 individuals, 22 of whom have pleaded guilty, as part of a larger, ongoing investigation into bribery at PDVSA.

HSI Houston is conducting the ongoing investigation with assistance from HSI Boston and Miami.

Assistant U.S. Attorneys (AUSA) Robert S. Johnson and John P. Pearson are prosecuting the case along with Trial Attorney Sarah E. Edwards and Assistant Chief Sonali D. Patel of the Criminal Division’s Fraud Section. AUSA Kristine E. Rollinson is handling the forfeiture aspects of the case.

The Justice Department’s Office of International Affairs, the Swiss Federal Office of Justice and the Office of the Attorney General of Panama also provided assistance.

McALLEN, Texas – A 54-year-old man has entered a guilty plea to conspiracy to defraud the United States and aiding and abetting the failure to file a form 8300, announced Acting U.S. Attorney Jennifer B. Lowery.

Jesus Juraidini admitted to paying over $2.5 million to Delfino Gaona in connection with the purchase and/or construction of at least six residential and commercial properties. Gaona, 48, Mission, was doing business as Keystone Construction and DG & GG Investments LLC. 

Juraidini admitted he and Gaona conspired to avoid currency reporting requirements from approximately January 2010 through at least Nov. 14, 2018. Juraidini admitted he knew that under federal law, a non-financial trade or business such as the businesses Gaona operated must file a notice with the Secretary of the Treasury for the receipt of $10,000 in currency in one transaction, known as an IRS Form 8300. 

Juraidini knew Gaona was not going to file the required document. A review of records confirmed that Gaona nor his business entities filed the proper form documenting the cash proceeds.  

As part of his plea agreement, Juraidini also agreed to a money judgment in the amount of $2,519,000 and forfeiture of 10 properties in Hidalgo County.

U.S. District Judge Randy Crane will impose sentencing June 3. At that time. Juraidini faces up to five years in prison. He is set for a bond hearing before U.S. Magistrate Judge J. Scott Hacker today at 3 p.m.

Gaona previously pleaded guilty and is pending sentencing before U.S. District Judge Micaela Alvarez June 24.

The FBI conducted the investigation with the assistance of the Drug Enforcement Administration, Texas Department of Public Safety, Texas Department of Insurance, Hidalgo County Sheriff’s Office and police departments in McAllen and Pharr. Assistant U.S. Attorneys Roberto Lopez Jr. and Rick Blaylock Jr. are prosecuting the case. 

LAREDO, Texas - A 44-year-old Bryan resident has been charged with one count of wire fraud, announced Acting U.S. Attorney Jennifer B. Lowery.

Keith Anton Johnson is set to make his initial appearance today before U.S. Magistrate Judge Sam Sheldon at 2 p.m.  

The indictment, returned March 10, alleges Johnson fraudulently received $123,500 in Payroll Protection Program (PPP) funds from the Small Business Administration as part of the Coronavirus Aid, Relief and Economic Security (CARES) Act.  

According to the indictment, Johnson owned and operated KJR Entertainment Holdings LLC in conjunction with others from January 2020 through July 2020. The primary concern of KJR Entertainment was the operation of a bar and live music venue in Bryan known as Southerns, according to the charges.

Johnson allegedly submitted required payroll information purporting to be that of current employees to justify the basis for a PPP loan. On these forms, he allegedly attested to an employee’s current status when, in fact, the one-time employee had quit in January 2020, according to the charges.

The indictment alleges Johnson was ineligible for the funds due to a pending indictment in a separate case.

PPP application forms required the applicant to acknowledge program rules and to certify and attest to various qualifiers. One such question referred to an applicant’s criminal charges. Johnson answered no, even though he knew he was currently facing charges in Harris County, according to the indictment.  

The CARES Act is a federal law enacted March 27, 2020, to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief the CARES Act provides is the authorization of up to $349 billion in United States Small Business Administration (SBA)-guaranteed and forgivable loans to small businesses through the PPP.

Businesses must use PPP loan proceeds for certain permissible expenses, such as payroll costs, interest on mortgages, rent and utilities. Interest and principal on PPP loans can be entirely forgiven if the business spent the loan proceeds on these expense items within a designated period of time.

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

The FBI and Harris County Precinct One Constables Office conducted the investigation. Assistant U.S. Attorney Thomas Carter is prosecuting the case.

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

HOUSTON – A doctor of osteopathic medicine from Bellaire has paid to resolve allegations he falsely certified patients for home health services and received improper payments, announced Acting U.S. Attorney Jennifer B. Lowery.

Truc Le, 51, is a primary care physician in southwest Houston.

In 2016, authorities began an investigation into a home health agency known as Unified Medical Group Inc. That investigation appeared to show Le had certified patients for home health services without any knowledge of the patients’ medical condition or homebound status. Instead, Le signed forms that Unified representatives provided to him on a regular basis.    

In addition, Unified sent improper payments to Le in violation of the Anti-Kickback Statute. It prohibits offering or paying remuneration to induce the referral of items or services that Medicare, Medicaid and other federally-funded programs cover. Claims submitted to these programs in violation of the Anti-Kickback Statute give rise to liability under the False Claims Act. 

“Medical professionals put the integrity of our federal health care programs at risk when they just rubber-stamp forms,” said Lowery. “It is made worse when improper payments are the source of their motivation. With the investigative assistance of our federal and state partners, we will continue to do what we can to protect our nation’s systems and the citizens they are designed to serve.

Le has agreed to pay $475,000 to resolve the allegations.

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

Assistant U.S. Attorneys Melissa Green, Brad Gray and Andrew Bobb handled the matter on behalf of the United States. 

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

McALLEN, Texas – A 48-year-old man residing in Lyford has pleaded guilty to conspiracy to commit bankruptcy fraud, announced Acting U.S. Attorney Jennifer B. Lowery.

Kenneth B. Ponce is the CEO of Hidalgo County Emergency Services Foundation doing business as Hidalgo County EMS, South Texas Air Med and South Texas EMS (collectively referred to as Hidalgo County EMS). On Oct. 8, 2019, Hidalgo County EMS initiated bankruptcy proceedings in the Southern District of Texas (SDTX) Corpus Christi Division. Today, Ponce admitted that during the bankruptcy proceeding, he committed perjury when filing official forms requiring him to disclose financial affairs, debts and assets of Hidalgo County EMS. Ponce failed to disclose or falsified certain transactions in order to conceal property from the bankruptcy estate. He also fraudulently received material amounts of property from the bankruptcy estate and permitted others to continue to do so.

As part of the plea, Ponce admitted to fraudulent agreements involving an Edinburg property. The purpose was to forfeit equitable interests and restructuring of over $264,000 in order to give another individual preferential treatment over other creditors. In official forms filed with the bankruptcy court, Ponce did not disclose any prior agreements concerning the property or related equitable interests Hidalgo County EMS had possessed

Hidalgo County EMS was also paying WFAS Inc. for leases on the exclusive use of two airplanes. Ponce owned WFAS. In bankruptcy filings, Ponce said the leases were dedicated to emergency transfers. In reality, at least one of the planes was inoperable during portions of the bankruptcy. Ponce also personally used the planes or they were for chartered flights he had arranged. Ponce would retain the profit, while Hidalgo County EMS paid the leases. 

Ponce also knew of certain payments Hidalgo County EMS made towards a residence in McAllen he personally used as well as other payments not actually for the benefit of Hidalgo County EMS. Ponce further admitted he received an interest payment from $50,000 another individual had embezzled from the Hidalgo County EMS bankruptcy estate.

He did not disclose any of this to the bankruptcy court or Hidalgo County EMS creditors.

As part of his plea, Ponce also agreed to a money judgment in the amount of $124,010.15 and restitution to Hidalgo County EMS or its successors.

U.S. District Judge Randy Crane accepted the plea and set sentencing for May 26. At that time, Ponce faces up to five years in prison. He was permitted to remain on bond pending that hearing.

The FBI conducted the investigation with the assistance of the McAllen Police Department. Assistant U.S. Attorney (AUSA) Roberto Lopez Jr. prosecuted the case. AUSA Richard Kincheloe is representing the United States in the underlying bankruptcy proceedings.

LAREDO, Texas – A 27-year-old Laredo resident has pleaded guilty to a conspiracy which resulted in the death of an undocumented alien, announced Acting U.S. Attorney Jennifer B. Lowery. 

On Nov. 5, 2020, law enforcement attempted to pull over David Valadaz, but he fled. He then crashed into the fence of a local business before fleeing on foot.  Three undocumented aliens were in the vehicle, one of whom was in the trunk.

The individual  in the truck of the vehicle was deceased when authorities found him. Another had suffered serious bodily injury requiring surgery to his elbow. 

Sentencing has been scheduled for June 17 before U.S. District Judge Marina Garcia Marmolejo. At that time, Valadaz faces up to life in federal prison and a possible $250,000 maximum fine.

Valadez has been and will remain in custody pending sentencing.

Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of the Texas Department of Public Safety. Assistant U.S. Attorneys Anthony Brown and April Ayers-Perez are prosecuting the case.

McALLEN, Texas - A former local police officer has been convicted of sexually assaulting two men while in his custody, announced Acting U.S. Attorney Jennifer B. Lowery.

The federal jury deliberated for approximately two hours before returning guilty verdicts against Matthew Lee Sepulveda on two violations of civil rights following a two-day trial.

Sepulveda, 25, Edinburg, was a former law enforcement officer with the Progreso Police Department. He served from April 17 to July 2, 2019. The jury heard that while acting under his authority as a uniformed police officer, Sepulveda violated performed oral sex on the victims while they were in his custody.

The jury heard from the two victims.

The first explained that after he was arrested, Sepulveda took him from the jail cell and escorted him to another office at the police department. Sepulveda then began asking him questions of a sexual nature and performed oral sex on him. The victim testified because Sepulveda was a police officer, he was scared and did not think he could leave.

The evidence showed Sepulveda’s DNA was found on the victim’s underwear. The jury also heard that Sepulveda logged the victim’s arrest and case after the fact.

The second victim, who was only 17 at the time, was taken to the police department because he was unable to contact his parents subsequent to a traffic stop in which he was a passenger. He described how Sepulveda took him to an office located within the police department where he began asking the victim questions of a sexual nature and also performed oral sex on the victim.

The defense attempted to portray one of the victims as a liar and questioned some of the evidence. The jury was unconvinced and found Sepulveda guilty of two civil rights violations. They also found that on the second count, his conduct resulted in bodily injury and included attempted aggravated sexual abuse, aggravated sexual abuse and kidnapping.

U.S. District Judge Randy Crane presided over trial and set sentencing for May 20. At that time, Sepulveda faces up to life in federal prison.

Previously released on bond, he was taken into custody following the verdict today where he will remain pending that hearing.

The Hidalgo County Sheriff’s Office conducted the investigation with the assistance of the FBI. Assistant U.S. Attorneys Sarina S. DiPiazza and Angel Castro prosecuted the case.

HOUSTON – A 51-year-old Mexican citizen who legally resided in Houston has been ordered to federal prison for leading a cocaine trafficking organization, announced Acting U.S. Attorney Jennifer B. Lowery.

Aldo Rigoberto Guerra-Guevara pleaded guilty Oct. 23, 2020, to conspiracy to possess with intent to distribute cocaine.

Today, Chief U.S. District Judge Lee H. Rosenthal imposed a 14-year federal prison sentence. Guerra-Guevara could potentially lose his legal status in the country and face removal proceedings following completion of his sentence. Judge Rosenthal also entered a final order of forfeiture for properties and vehicles used for cocaine trafficking valued at over $500,000.

At the hearing, the court found Guerra was the Houston leader and organizer of a drug trafficking organization responsible for moving millions in drugs and drug money throughout the United States.  

Between November 2018 and January 2019, the organization moved over $7.1 million in U.S. currency and at least 486 kilograms of cocaine valued at over $12.5 million. Guerra-Guevara served as the Houston leader and also oversaw locations where drugs and money were stored for distribution. 

The investigation culminated Jan. 18, 2019, when authorities seized 50 kilograms of cocaine from Silvano Adame Jr., 52, Galena Park; and over $687,000 in U.S. currency from Alejandro Valenzuela-Razo, 41, Laredo. They also pleaded guilty as did Hermes Tomasichi-Ledezma, 46, Monterrey, Mexico and Aldo Fernando Soto, 34, Houston. They are all pending sentencing and face up to 40 years in prison.

Two others - Eluid Alejandro Rodriguez Garcia, 41, and Jose Guillermo Ramirez, 41, both of Monterrey, Mexico – are also charged but not as yet in custody. They are considered fugitives and warrants remain outstanding for their arrests.

Guerra-Guevara 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 IRS - Criminal Investigation conducted the two-year Organized Crime Drug Enforcement Task Force (OCDETF) investigation dubbed Dirty Dingo.  

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

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

Assistant U.S. Attorney Edward F. Gallagher prosecuted the case.

HOUSTON – A 46-year-old local chiropractor and her medical group have been named in a civil suit under the False Claims Act alleging fraudulent billing, announced Acting U.S. Attorney Jennifer B. Lowery.

Suhyun An owns and manages Campbell Medical Group PLLC and Johnson Medical Group PLLC dba Campbell Medical Clinic in the Spring Valley area of Houston.

The civil complaint, filed today, alleges An fraudulently obtained over $3.9 million from the Medicare and TRICARE programs by billing for the implantation of neurostimulator electrodes. These are surgical procedures usually requiring use of an operating room, and Medicare pays thousands of dollars for this procedure, according to the complaint.   

The complaint alleges that neither An nor her clinic’s employees performed surgery. Instead, they allegedly applied inexpensive devices used for electro-acupuncture. This procedure involves inserting needles into patients’ ears with a neurostimulator taped behind the ears with an adhesive, according to the complaint.

The lawsuit alleges nurse practitioners working for An learned how to apply the devices by watching YouTube videos and participating in trainings with sales representatives. 

The complaint alleges An knew the devices were not billable or recklessly disregarded that fact. She allegedly read specific guidance from a Medicare contractor stating Medicare did not cover the devices because they only provided acupuncture. The suit further claims she ignored emailed warnings from employees and outside billing companies including warnings that the devices were being labeled as “possible fraud.”

The Department of Health and Human Services – Office of Inspector General and Defense Criminal Investigative Services assisted with the investigation. Assistant U.S. Attorney Brad Gray is handling the matter. 

The claims are allegations only, and there has been no determination of liability.

BROWNSVILLE, Texas – A 52-year-old man has been ordered to federal prison after he admitted to one count of money laundering, announced Acting U.S. Attorney Jennifer B. Lowery.

Edgardo Serrano pleaded guilty Nov. 2, 2020, admitting he drove $1,758,465 in proceeds from the sale of illegal narcotics from Florida to the Rio Grande Valley. He is originally from New Boston, Michigan, but now resides in Miami, Florida.  

Today, U.S. District Judge Fernando Rodriguez Jr. ordered him to serve a 72-month sentence to be immediately followed by three years of supervised release. At the hearing, the court heard additional evidence detailing the importance of the $1,758,465 payment in exchange for more cocaine being sent to Miami. In handing down the sentence, Judge Rodriguez noted the large amount of cocaine the $1.7 million represented.

The investigation revealed trucks would pick up cocaine from South Texas to be driven to Florida for illegal sale. Drivers like Serrano would then return to the Rio Grande Valley with the illegal drug proceeds for delivery into Mexico to drug cartel members.

Authorities discovered Serrano in Hidalgo County April 17, 2020, with drug money secreted in his semi-tractor-trailer.

As part of his plea, he agreed to forfeit the $1,758,465 as illegal money obtained from the sale of cocaine.

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

Immigration and Customs Enforcement’s Homeland Security Investigations Drug Enforcement Administration and Bureau of Alcohol, Tobacco, Firearms and Explosives jointly conducted the Organized Crime Drug Enforcement Task Force (OCDETF) investigation titled La Familia Tradicion. Assistant U.S. Attorney Karen Betancourt prosecuted the case.

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.

HOUSTON – Two Houston area men are now in custody on charges of conspiracy to commit health care fraud relating to a pharmacy fraud scheme, announced Acting U.S. Attorney Jennifer Lowery.

Authorities arrested Mohamed Mokbel, 56, and Fathy Elsafty, 62, both of Houston, today. They are expected to make their initial appearances before U.S. Magistrate Judge Andrew Edison at 2 p.m.

The eight-count indictment alleges Mokbel is the owner of several Houston area pharmacies, while Elsafty is his accountant.

4M Pharmaceuticals Inc. was the parent company for several retail pharmacies that operated in Houston, Fort Worth, South Florida and elsewhere, according to the charges. Mokbel was 4M’s CEO and allegedly had ownership interests in the subsidiary pharmacies. The charges allege Elsafty served as 4M’s accountant and tax preparer as well as nominee owner of the multiple pharmacies.

4M Pharmaceuticals allegedly functioned as an outbound telemarketing call center that solicited Medicare, Medicaid and commercial insurance patients nationwide – many over the over the age of 55. The indictment alleges call center employees offered patients medically unnecessary diabetic supplies and topical creams although many refused the solicitations. However, 4M Pharmaceuticals and pharmacies allegedly billed the patient’s insurance plan anyway. In some cases, 4M pharmacies billed for prescriptions dispensed after a patient’s death, according to the allegations.

The scheme also allegedly targeted doctors. The charges allege 4M Pharmaceuticals sent fax requests for prescriptions that patients often did not authorize. In several cases, the company billed patients for prescription drugs without a valid prescription, according to the allegations. 4M pharmacies also allegedly sent prescription requests to doctors for dead patients.

In several instances, audits required 4M to produce paperwork, according to the indictment. ElSafty allegedly participated in fabricating records.

The indictment alleges that from Dec. 13, 2013, through March 3, 2020, 4M pharmacies collectively received over $134 million in payments from Medicare and other healthcare benefit programs based on fraudulent claims. The funds were allegedly used, in part, to pay for Mokbel’s $1.5 million residence, $15 million in gambling and casino expenses and purchases and payments for a Ferrari and a Bentley automobile. Mokbel also transferred and controlled over $6 million in health care fraud proceeds in certificate of deposit accounts at banks, according to the allegations.  

Mokbel and ElSafty are charged with one count of a conspiracy to commit health care fraud, three counts of health care fraud and four counts of money laundering. All carry a possible prison sentence of 10 years in prison and a $250,000 maximum fine. The use of telemarketing to target people over 55 as a means to commit health care fraud carries an additional penalty of 10 years.

Immigration and Customs Enforcement - Homeland Security Investigations, Department of Health and Human Services - Office of Inspector General, Food and Drug Administration - Office of Criminal Investigations, FBI, Texas Attorney General’s Medicaid Fraud Control Unit, IRS - Criminal Investigation, Ohio Medicaid Fraud Control Unit and  Texas State Board of Pharmacy conducted the joint investigation. 

Special Assistant U.S. Attorney Abdul Farukhi and Assistant U.S. Attorney Zahra Fenelon are prosecuting the case.

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

LAREDO, Texas – A federal grand jury sitting in Laredo has charged a Mexican man for illegally importing approximately 30.26 kilograms of narcotics, announced Acting U.S. Attorney Jennifer B. Lowery.

On Feb. 11, authorities apprehended Jose Lopez-Sanchez at the Lincoln Juarez Bridge port of entry in Laredo attempting to travel into the United States, according to the charges. He had allegedly given an inconsistent statement at primary inspection and sent to secondary.

A K-9 allegedly alerted to the presence of narcotics. An X-ray scan also revealed anomalies behind the vehicles firewall and rear passenger seats, according to the charges.

The charges allege that upon physical examination, law enforcement discovered a total of 30 bundles of meth with an approximate weight of 17.78 kilograms. They also allegedly found one bundle of heroin and eight bundles of fentanyl weighing 1.2 and 11.28 kilograms, respectively.

The drugs have an estimated combined street value of approximately $1,585,855.

If convicted, Lopez-Sanchez faces a mandatory minimum of 10 years and up to life in prison and a possible $10 million maximum fine.

Immigration and Customs Enforcement’s Homeland Security Investigations and Customs and Border Protection conducted the investigation. Assistant U.S. Attorney Michael Makens is prosecuting the case.

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

LAREDO, Texas – A 46-year-old resident of Pharr has been charged with importing kilogram quantities of meth, heroin and cocaine, announced Acting U.S. Attorney Jennifer B. Lowery.

A federal grand jury returned the indictment today against Eduardo Maldonado. Previously charged by complaint, he remains in custody pending his  arraignment in the near future.

Maldonado allegedly conspired with others to import 1.42, 2.04 and 4.16 kilograms of meth, heroin and cocaine, respectively.  

On Feb. 8, Maldonado applied for entry into the United States a passenger on a commercial bus that arrived at the Lincoln-Juarez bridge Port of Entry in Laredo, according to the indictment. Authorities had conducted an X-ray scan of the luggage and allegedly observed anomalies in a cardboard box. A K-9 unit then positively alerted for the presence of contraband, according to the charges. Law enforcement allegedly determined the box belonged to Maldonado.

A physical search of the box revealed a total of nine packages, all which allegedly tested positive for cocaine, meth and heroin. The drugs have a combined estimated street value of $162,000.

If convicted, Maldonado faces up to life in prison and a possible $10 million fine.

Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of Customs and Border Protection. Assistant U.S. Attorney Paul A. Harrison is prosecuting the case.

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

BROWNSVILLE, Texas – A 40-year-old former Cameron County official has entered a guilty plea to interstate travel in aid of racketeering, announced Acting U.S. Attorney Jennifer B. Lowery.  

Arnoldo Romeo Flores Jr., 40, Mission, was the director of Human Resources/Civil Service for Cameron County. As part of his plea, he admitted he used his personal cellular phone and email as well as the internet to further a bribery scheme.

In those communications, Flores discussed using his influence to help someone obtain two separate contracts from Cameron County in exchange for bribes.

Flores provided inside information, such as the amounts of other bids. In one instance, Flores told an individual to make sure the bid was under $8,900 to be successful. In return, Flores received $3,000. He accepted another $1,500 for his assistance in securing a second Cameron County bid. 

According to the plea agreement, the use of his cell phone assisted and led to the bribe payments.

U.S. District Judge Fernando Rodriguez accepted the plea today and set sentencing for June 15. At that time, Flores faces up to five years in prison and a possible $250,000 maximum fine. He has also agreed to pay restitution.

The FBI conducted the investigation with assistance from the Cameron County District Attorney’s Office and Brownsville Police Department. Assistant U.S. Attorneys Jody Young, Robert S. Johnson and Israel Cano are prosecuting the case.

McALLEN, Texas – A 21-year-old woman from Houston has been ordered to federal prison following her conviction for attempting to import approximately 55 kilograms of meth, announced Acting U.S. Attorney Jennifer B. Lowery.

Heidy Jackaline Diaz pleaded Nov. 6, 2020.

Today, U.S. District Judge Micaela Alvarez ordered Diaz to serve a 70-month sentence to be immediately followed by three years of supervised of release. At the hearing, the court noted the large amount of meth involved its potential harm to the community .

On May 23, 3020, Diaz arrived at the Hidalgo Port of Entry driving a Ford truck and applied for admission into the United States from Mexico. During inspection, authorities conducted an X-ray examination which showed anomalies in the gas tank area of the vehicle. A K-9 also altered to the presence of narcotics.

Law enforcement ultimately extracted more than 120 pounds of meth with an approximate street value of over $1 million.

Diaz admitted she knowingly imported the meth into the United States from Mexico with the intent to deliver them to another individual in McAllen. She expected to be paid $3,000.

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

Immigration and Customs Enforcement’ s Homeland Security Investigations and Customs and Border Protection conducted the investigation. Assistant U.S. Attorneys Frances E. Blake and Eliza Carmen prosecuted the case.

LAREDO, Texas – A 54-year-old resident of Fort Meade, Florida, has pleaded guilty in Laredo federal court to conspiracy to transport undocumented aliens, announced Acting U.S. Attorney Jennifer B. Lowery.

Joseph Winslow entered a guilty plea today, admitting he had agreed to drive a tractor-trailer from Laredo to San Antonio in return for $10,000.

On Dec. 30, 2020, Winslow arrived at the Border Patrol 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.

U.S. District Judge Marina Garcia Marmolejo will impose sentencing June 15. At that time, Winslow faces up to 10 years in prison.

He was permitted to remain on bond pending that hearing.

Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of Border Patrol. Assistant U.S. Attorney David Fawcett is prosecuting the case.

McALLEN, Texas – Two men have been ordered to federal prison for decades following their more than a dozen convictions of drug crimes, carjacking, robbery and firearms offenses, announced Acting U.S. Attorney Jennifer B. Lowery along with Special Agent in Charge Christopher Combs of the FBI - San Antonio Division and Special Agent in Charge Daniel C. Comeaux of the Drug Enforcement Administration (DEA).  

A McAllen jury deliberated for five hours before convicting Mexican citizen Marin Macrin Cerda aka Filtro, 34, and Jose Miguel Montemayor aka El Mickey, 30, Mission, Sept. 6, 2019, following a seven-day trial. 

Today, U.S. District Judge Micaela Alvarez handed Montemayor and Cerda a total of 84 and 113 years in prison, respectively.

At the hearing, the court learned the two men victimized over 35 people – through 13 carjackings, three home invasions and the corrupt actions of two former law enforcement officers. The victims included 11 children as young as 5 and with one with disabilities. Additional evidence also detailed how the men were directly involved in the attempted or successful theft of approximately 100 kilograms of cocaine valued at approximately $2 million. They were also involved in the theft of over $100,000 in suspected drug proceeds and 300 kilograms of marijuana worth approximately $200,000.

While imposing the sentences, Judge Alvarez noted that while she does not remember every single case before her, this one was memorable in the way the rip crew indiscriminately targeted drug traffickers and innocent civilians. The court heard details of their violent crimes which included several discharges of firearms on highways and neighborhoods. Judge Alvarez further mentioned that when first sworn as a federal judge, these kind of violent actions were more often seen in Mexico, but have become more common on the border. 

“These defendants were the leaders of Los Mickies, a violent criminal organization that supported drug trafficking activities by engaging in multiple carjackings, home invasions and a neighborhood shootout,” said Combs. “The significant sentences imposed today send a strong message to anyone who thinks they can conduct violent acts in our neighborhoods. We will not tolerate those who violate the peace and safety of our communities and recklessly endanger the public.”

“This investigation highlights the positive impact of multiple agencies joining together to target a violent drug trafficking organization,” said Comeaux. “These criminals routinely resorted to lethal violence in furtherance of their drug trafficking ambitions. DEA will continue to join forces with our federal, state and local law enforcement partners to target and remove those violent organizations who prey on our communities.”  

Cerda and Montemayor were convicted of conspiracy to possess with intent to distribute more than five kilograms of cocaine, conspiracy to possess a firearm in furtherance of a drug trafficking offense and a crime of violence, two counts of carjacking, four counts of Hobbs Act robberies, two counts of brandishing a firearm in furtherance of a crime of violence and/or a drug trafficking offense and three counts of discharging a firearm in furtherance of a crime of violence and/or a drug trafficking offense. Cerda was also convicted of conspiracy to possess with intent to distribute more than 100 kilograms of marijuana, an additional count of carjacking, an additional count of Hobbs Act robbery, two additional counts of brandishing a firearm in furtherance of a crime of violence or drug trafficking offense and one additional count of discharging a firearm in furtherance of a drug trafficking offense or crime of violence in relation to events he participated in without Montemayor.

The investigation began after discovering a local rip crew was responsible for multiple carjackings and home invasions in Hidalgo County in order to steal controlled substances or drug proceeds.

During trial, testimony revealed Cerda and other crew members utilized law enforcement officials to further their drug trafficking activities. Two of those included former Donna Independent School District police officer Juan F. Mata and former Hidalgo County Court at Law No. 6 Bailiff Oscar De La Cruz. Jurors heard Mata conducted fraudulent traffic stops in order to allow members of the organization to steal cocaine and marijuana hidden in load vehicles. De La Cruz produced fictitious federal search warrants forging former U.S. Magistrate Judge Dorina Ramos’ signature and queried sensitive law enforcement and judicial databases the organization would provide to sources of supply in order to retain and steal controlled substances in their possession.

Also during trial, the jury heard about multiple crimes involving Cerda, Montemayor or both between 2016-2017. Three of those crimes were carjackings in McAllen and Pharr involving both men in an attempt to steal cocaine. In the second and third instances, rip crew members discharged firearms at the vehicles in order to obtain the controlled substances. Testimony further revealed Cerda and Montemayor were involved in a robbery which resulted in a shoot-out in a McAllen neighborhood. Another crime involved a home invasion, during which the criminals entered the wrong residence seeking drugs and terrorizing a family, including a female who was eight months pregnant. Cerda and Montemayor also served as scouts for a drug transaction involving more than 20 kilograms of cocaine Feb. 1, 2017, in McAllen.

Jurors heard the rip crew continued their activities when they also attempted to rob multiple kilograms of cocaine from a vehicle traveling through Mission and McAllen on Feb. 27, 2017. Cerda and Montemayor discharged firearms at the targeted load vehicle in an attempt to steal the cocaine. Testimony revealed a bullet struck an occupant of the vehicle who required significant medical attention. Cerda was further involved in the carjacking of a tractor trailer in rural Mission July 7, 2016, and a car chase and shootout Jan. 6, 2017. In the first instance, the rip crew threatened a family, including several juveniles, in order to steal a tractor trailer believed to conceal drug proceeds. During the car chase incident, the crew discharged firearms and rammed their vehicles into a vehicle before it ultimately crashed. 

Jurors also heard testimony relating to a home invasion conducted in Mission April 3, 2017, when rip crew members, including Cerda, entered the residence of a suspected drug trafficker armed with firearms and successfully stole more than $100,000 in drug proceeds. Casings recovered from three of the crimes were fired from firearms found in Cerda’s vehicle.

The defense attempted to convince the jury that although the crimes had been committed, co-conspirators fabricated Cerda’s and Montemayor’s involvement. They did not believe those claims and convicted both men as charged.

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

To date, more than 30 co-conspirators have been convicted in connection with the investigation. Mata and De La Cruz also pleaded guilty and have been sentenced to 130 and 60 months, respectively. Others to date have received sentences up to 240 months with nine receiving sentences in excess of 10 years.  

The FBI and DEA conducted the investigation with assistance from Border Patrol, U.S. Marshals Gulf Coast Regional Fugitive Task Force, Immigration and Custom’s Enforcement’s Homeland Security Investigations, Texas Department of Public Safety’s Highway Patrol and Regional Crime Laboratories, Hidalgo County Sheriff’s Office, Hidalgo County District Attorney’s Office and Police Departments in McAllen, Mission, Pharr and San Juan. 

Assistant U.S. Attorneys Roberto Lopez Jr. and K. Alejandra Andrade are prosecuting the case. 

CORPUS CHRISTI – A 40-year-old Texan has been ordered to federal prison following receipt of more than 5,000 images of child pornography, announced Acting U.S. Attorney Jennifer B. Lowery.

Paul Thomas Rosales pleaded guilty Sept. 8, 2020, to receipt of child pornography.

Today, U.S. District Judge David S. Morales ordered Rosales to serve a 176-month sentence. At the hearing, the court also heard about the 5,84 confirmed images on his digital devices which included child victims approximately 2-3 years old and younger. One involved an infant child. Rosales also had admitted he possessed approximately 50,000 child pornographic images, many involving children between 5-16 years of age.

In handing down the sentence, the court noted the need for punishment. Rosales will also serve 15 years on supervised release during which time the court can impose a number of special conditions designed to protect children and prohibit the use of the internet. He is also required to register as a sex offender. 

“Today we are reminded of how heinous crimes against children are, as some of Rosales' youngest victims were infants,” said Special Agent in Charge Perrye K. Turner of FBI. “The FBI will continue to work tirelessly to protect children from sexual exploitation and bring these reprehensible predators to justice.”

Authorities had linked Rosales to explicit materials found on a peer-to-peer network. The area task force investigation soon led them to his residence in Victoria.  

They conducted a search and seized numerous digital devices. Forensic analysis ultimately revealed over 5,000 images of children engaged in sexually explicit conduct, some of which included children under the age of 5.

At the time of his plea, Rosales admitted to receiving the pornographic images.

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

The FBI – Corpus Christi Resident Agency and Victoria Police Department conducted the investigation along with the Houston Metro Internet Crimes Against Children Task Force.

Assistant U.S. Attorney Reid Manning 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 34-year-old Houston resident has entered a guilty plea in Corpus Christi federal court to transporting nearly 40 kilograms of pure meth with the intent to distribute, announced Acting U.S. Attorney Jennifer B. Lowery.

On Dec. 24, 2020, Christopher Schulgen approached the Javier Vega Jr. checkpoint near Sarita driving a Toyota Camry. Upon arrival, a K-9 alerted to his vehicle. Authorities referred him to secondary inspection where they discovered 44 bundles of a white powdery substance. They were located under the back seat, in factory voids of the door panels and the rear quarter panels of the vehicle.

Law enforcement determined the content of the bundles to be 39.58 kilograms of pure meth with an estimated street value of $800,000.

U.S. District Judge David S. Morales will impose sentencing June 2. At that time, Schulgen faces a mandatory minimum of 10 years and up to life in federal prison and a possible $10 million maximum fine.

He has been and will remain in custody pending sentencing.

Drug Enforcement Administration and Customs and Border Protection conducted the investigation. Assistant U.S. Attorney Sara Popejoy is prosecuting the case.

CORPUS CHRISTI, Texas - A 48-year-old Corpus Christi resident has been ordered to federal prison following his conviction of conspiring to distribute 243 grams of meth, announced Acting U.S. Attorney Jennifer B. Lowery. 

Willie James Sorrell III pleaded guilty Nov. 12, 2020.

Today, U.S. District Judge Nelva Gonzales Ramos ordered Sorrell to serve a 121-month sentence to be immediately followed by five years of supervised release. In handing down the sentence, the court noted Sorrell’s previous criminal conduct, to include aggravated sexual assaults, drug possessions and unlawful possession of firearms.

On May 30, 2019, Sorrell and Jennifer Saldana were traveling on a Greyhound bus from McAllen to the Corpus Christi area. Authorities conducted a search while at the Border Patrol checkpoint near Falfurrias where they discovered a backpack near Sorrell’s feet. It contained nearly 250 grams of meth and a  loaded semi-automatic firearm.

The investigation established Sorrell and Saldana traveled to the Rio Grande Valley to obtain the meth for potential distribution in Corpus Christi.   

Saldana, 38, Rockport, had also pleaded guilty and is set for sentencing March 24.   

Sorrell 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 along with the assistance of Customs and Border Protection and Texas Department of Public Safety. Assistant U.S. Attorney Reid Manning is prosecuting the case.

McALLEN, Texas – A 27-year-old Mexican citizen has been ordered to federal prison following his conviction for attempting to import approximately 23 kilograms of meth, announced Acting U.S. Attorney Jennifer B. Lowery.

Brian Alan Herrera-Valenzuela pleaded guilty Oct. 18, 2019.

Today, U.S. District Judge Micaela Alvarez ordered Herrera to serve a 168-month sentence. At the hearing, Judge Alvarez informed Herrera that his actions troubled the court because, as a non-citizen, he was willing to cause harm by  engaging in criminal activity that brought drugs into our community.

On April 14, 2019, Herrera attempted to gain entry into the United States via the Hidalgo port of entry. Upon his arrival, an X-ray revealed anomalies in the tires. Authorities conducted a search and discovered 40 packages of meth weighing approximately 23 kilograms.

Herrera admitted he knowingly imported the drugs into the United States from Mexico with the intent to deliver them to Dallas. He acknowledged this was his second trip after successfully transporting drugs the previous month. Herrera expected to be paid $7,000.

The drugs had an approximate street value of $115,000.

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

Immigration and Customs Enforcement’ s Homeland Security Investigations and Customs and Border Protection conducted the investigation. Assistant U.S. Attorney M. Alexis Garcia prosecuted the case.

HOUSTON – A 37-year-old Houston resident is set to appear in federal court for her alleged submission of two Paycheck Protection Program (PPP) loan applications pursuant to the Coronavirus Aid, Relief and Economic Security (CARES) Act, announced Acting U.S. Attorney Jennifer B. Lowery. 

The criminal indictment, filed Feb. 24, charges LaDonna Wiggins with bank fraud, making a false statement to a bank and money laundering. She is set to appear before U.S. Magistrate Judge Peter Bray today at 2 p.m..

Wiggins allegedly submitted two PPP loan applications for businesses known as Wiggins & Graham Enterprise LLC and Pink Lady Line, resulting in the receipt of  $3,648,145. The charges allege Wiggins used these funds to make personal purchases such as for two homes, multiple vehicles and luxury goods - rather than for any legitimate business purposes. 

The CARES Act is a federal law enacted March 27, 2020, to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief the CARES Act provides is the authorization of up to $349 billion in United States Small Business Administration (SBA)-guaranteed and forgivable loans to small businesses through the PPP.

Businesses must use PPP loan proceeds for certain permissible expenses, such as payroll costs, interest on mortgages, rent and utilities. Interest and principal on PPP loans can be entirely forgiven if the business spent the loan proceeds on these expense items within a designated period of time.

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

The Secret Service conducted the investigation. Assistant U.S. Attorney Zahra Jivani Fenelon is prosecuting the case.

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

HOUSTON - A 24-year-old Houston resident has been ordered to federal prison for 24 years, announced Acting U.S. Attorney Jennifer B. Lowery.

Jonathan Soto pleaded guilty Dec. 2, 2020, to aiding and abetting carjacking and two counts of discharging a firearm during and in relation to a crime of violence.

Today, U.S. District Judge George C. Hanks Jr. ordered him to serve 48 months for the carjacking. He was further sentenced to 120 months on each of the firearms charges to be served consecutively to each other and the underlying offense. The total 288 months will be automatically followed by five years of supervised release.

On Feb. 7, 2019, Soto and others approached a vehicle on the 7500 block of Corporate Drive in Houston and asked if the passengers were in a gang. He ordered them to get out of the car, but they refused. They were subsequently pulled from the vehicle and forced to lay on the ground, face-down. Soto punched one of them in the face. Another victim was able to run away as shots were fired in his direction.

Less than an hour later, Soto acted as a look-out driver during the armed robbery of the Old Irish Pub on the 2300 block of Kirkwood. The robber said “you think this is a  joke?” and fired his gun into the ceiling. He then ordered a victim to give him money from the register and safe.

Soto admitted to being the look-out driver for this robbery as well as taking part in the carjacking.  

Law enforcement was able to use National Integrated Ballistic Information Network to link shell casings from the carjacking and the robbery,

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

The Bureau of Alcohol, Tobacco, Firearms and Explosives and Houston Police Department conducted the investigation. Assistant U.S. Attorney Jill Stotts is prosecuting the case.

HOUSTON - A medical director, operator and two unlicensed practitioners at a Texas medical clinic are now in custody on charges related to their alleged participation in a $32 million health care fraud scheme.

Farrah Forough Farizani, D.O., 57, Hamid Reza Razavi, 60, Elie Hanna Hajjar, 48, and Juan Acuña, 64, all of Houston, made their appearances today before U.S. Magistrate Judge Christina Bryan.

Farizani and Razavi are the medical director and operator, respectively, of Hillcroft Physicians, while Hajjar and Acuña were former unlicensed practitioners there.

The indictment, unsealed today, charges all four with one count of conspiracy to commit health care fraud. Farizani, Razavi and Hajjar are also charged with five counts of making false statements relating to health care matters.

The indictment alleges the defendants participated in a health care fraud scheme. They allegedly submitted false and fraudulent claims to Medicaid and Medicare for services that were not provided as billed or were not provided by a licensed, qualified and enrolled provider. Farizani, Razavi, Hajjar,and Acuña allegedly misled patients and staff to believe that Hajjar and Acuña were licensed to practice medicine in Texas.

According to the indictment, Farizani and Razavi directed Hajjar and Acuña to pose as licensed medical professionals. Hajjar and Acuña then allegedly examined, diagnosed, treated, referred and prescribed drugs for patients, many of whom were non-English speaking Medicaid clients unfamiliar with the American medical system. Farizani and Razavi allegedly directed Hillcroft Physicians’ billing staff to submit false claims to Medicaid and Medicare as though Farizani had seen and treated the patients, even when Farizani was out of the country.

The indictment alleges that the defendants submitted or caused the submission of approximately $31 million in claims to Medicaid for which Medicaid paid approximately $12.2 million. They also submitted approximately $600,000 in claims to Medicare for which Medicare paid approximately $250,000.

The FBI, Department of Health and Human Services (DHHS) - Office of Inspector General and Texas Attorney General’s Medicaid Fraud Control Unit conducted the investigation. Immigration and Customs Enforcement’s Homeland Security Investigations assisted with the arrests.

Trial Attorney Devon Helfmeyer of the Criminal Division’s Fraud Section and Special Assistant U.S. Attorney Kathryn Olson of the Southern District of Texas are prosecuting the case.

The Fraud Section leads the Health Care Fraud Strike Force. Since its inception in March 2007, the Health Care Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the DHHS Centers for Medicare & Medicaid Services, working in conjunction with DHHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

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

A medical director, operator and two unlicensed practitioners at a Texas medical clinic are now in custody on charges related to their alleged participation in a $32 million health care fraud scheme.

Farrah Forough Farizani, D.O., 57, Hamid Reza Razavi, 60, Elie Hanna Hajjar, 48, and Juan Acuña, 64, all of Houston, made their appearances today before U.S. Magistrate Judge Christina Bryan.

Farizani and Razavi are the medical director and operator, respectively, of Hillcroft Physicians, while Hajjar and Acuña were former unlicensed practitioners there.

The indictment, unsealed today, charges all four with one count of conspiracy to commit health care fraud. Farizani, Razavi and Hajjar are also charged with five counts of making false statements relating to health care matters.

The indictment alleges the defendants participated in a health care fraud scheme. They allegedly submitted false and fraudulent claims to Medicaid and Medicare for services that were not provided as billed or were not provided by a licensed, qualified and enrolled provider. Farizani, Razavi, Hajjar, and Acuña allegedly misled patients and staff to believe that Hajjar and Acuña were licensed to practice medicine in Texas.

According to the indictment, Farizani and Razavi directed Hajjar and Acuña to pose as licensed medical professionals. Hajjar and Acuña then allegedly examined, diagnosed, treated, referred and prescribed drugs for patients, many of whom were non-English speaking Medicaid clients unfamiliar with the American medical system. Farizani and Razavi allegedly directed Hillcroft Physicians’ billing staff to submit false claims to Medicaid and Medicare as though Farizani had seen and treated the patients, even when Farizani was out of the country.

The indictment alleges that the defendants submitted or caused the submission of approximately $31 million in claims to Medicaid for which Medicaid paid approximately $12.2 million. They also submitted approximately $600,000 in claims to Medicare for which Medicare paid approximately $250,000.

Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Acting U.S. Attorney Jennifer B. Lowery of the Southern District of Texas; Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office; Special Agent in Charge Miranda Bennett of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Region; and Stormy Kelly of the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU) made the announcement.

The FBI, HHS-OIG and Texas Attorney General’s MFCU conducted the investigation. U.S. Immigration and Customs Enforcement’s Homeland Security Investigations assisted with the arrests.

Trial Attorney Devon Helfmeyer of the Criminal Division’s Fraud Section and Special Assistant U.S. Attorney Kathryn Olson of the Southern District of Texas are prosecuting the case.

The Fraud Section leads the Health Care Fraud Strike Force. Since its inception in March 2007, the Health Care Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

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

HOUSTON — A local Houston restaurant has settled allegations under Title III of the Americans with Disabilities Act (ADA) and agreed to remove barriers and greatly improve physical accessibility, announced Acting U.S. Attorney Jennifer B. Lowery.

Individuals with disabilities had complained that they were unable to gain access to the restaurant. A follow-up investigation revealed several physical barriers existed on restaurant access points preventing individuals with disabilities from gaining entry to the restaurant. Authorities also found additional violations inside the restaurant. 

The settlement agreement requires The Breakfast Klub to remove and remedy all ADA violations the United States has identified.

Under the ADA, persons with disabilities shall be afforded the opportunity to participate in or benefit from the goods, services, facilities, privileges, advantages or accommodations equal to that afforded to other individuals. Title III mandates that no individual shall be discriminated against on the basis of a disability by any person who owns, leases or operates a place of public accommodation. 

Under Title III, The Breakfast Klub is a place of public accommodation. As such, the property owner and tenant are subject to its requirements.

Assistant U.S. Attorneys Elizabeth Karpati and Keith Edward Wyatt handled this investigation with the assistance of Paralegal Specialist Raymond Babauta.

CORPUS CHRISTI, Texas – A 44-year-old felon has been ordered to federal prison for robbing the Kleberg Bank in Corpus Christi and brandishing a firearm during the robbery, announced U.S. Attorney Ryan K. Patrick.

Jesse Lemmons pleaded guilty Dec. 1, 2020.

Today, U.S. District Judge Drew B. Tipton handed Lemmons a 31-month sentence for the bank robbery. He also received a consecutive seven years for the firearms charge which must be served consecutively to the other sentence imposed. The total 117-month term of imprisonment will be immediately followed by five years of supervised release.

On Jan. 10, 2020, Lemmons entered the Kleberg Bank at 3945 Crosstown SH #286 in Corpus Christi. He proceeded directly to the teller stations where he demanded cash while holding bank employees at gunpoint. He yelled repeatedly at bank employees to hurry and threatened to shoot several of them during the robbery.

Authorities apprehended him shortly after attempting to flee the scene with the money.

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

The Corpus Christi Police Department and FBI conducted the investigation. Assistant U.S. Attorney Joel Dunn prosecuted the case.

The former chief of Antigua’s Financial Services Regulatory Commission (FSRC) was sentenced today to 10 years in prison for his role in connection with a $7 billion Ponzi scheme involving the Stanford International Bank (SIB).

Leroy King, 74, of Dickerson Bay, Antigua, pleaded guilty on Jan. 30, 2020, to one count of conspiracy to obstruct justice and one count of obstruction of justice for his role in obstructing the Securities and Exchange Commission (SEC) investigation into SIB. He was extradited to the United States in November 2019. King is a dual citizen of the United States and Antigua. Beginning in approximately 2002, he served as the administrator and CEO of the FSRC, an agency of the Antiguan government. As part of his duties, he was responsible for Antigua’s regulatory oversight of Stanford International Bank Limited’s (SIBL) investment portfolio, including the review of SIBL financial reports and responses to requests by foreign regulators, including the SEC, for information and documents about SIBL’s operations.

In or about 2005, the SEC began investigating R. Allen Stanford and Stanford Financial Group (SFG) and made official inquiries with the FSRC regarding the value and content of SIBL’s purported investments. 

King admitted that Stanford’s cash payments to King totaled approximately $520,963.87 over the course of the conspiracy. Stanford also provided King tickets to both Super Bowl XXXVIII in Houston (2004) and Super Bowl XL in Detroit (2006). In addition, Stanford provided King with repeated flights on private jets Stanford or SFG entities owned. King later denied the SEC’s request for help, and he wrote that the FSRC “had no authority to act in the manner requested and would itself be in breach of law if it were to accede to your request.” In reality, the FSRC did have this authority and failed to exercise it because of the payments and other benefits Stanford gave to King.

A federal jury found Stanford guilty in June 2012 for his role in orchestrating a 20-year investment fraud scheme in which he misappropriated $7 billion from SIB to finance his personal businesses. He is serving a 110-year prison sentence. Five others were also convicted for their roles in the scheme and received sentences ranging from 3 to 20 years in federal prison.

Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division and U.S. Attorney Ryan K. Patrick of the Southern District of Texas made the announcement.

The Houston Field Offices of the FBI, IRS-CI, and U.S. Postal Inspection Service investigated the case.

Trial Attorney Brittain Shaw of the Criminal Division’s Fraud Section and Assistant U.S. Attorney John Pearson of the Southern District of Texas prosecuted the case.

The Justice Department extends its gratitude to the government of Antigua for its cooperation and assistance.

LAREDO, Texas – A 40-year-old Customs and Border Protection (CBP) officer is set to appear in federal court on charges of conspiring to transport an illegal alien and making false statements, announced U.S. Attorney Ryan K. Patrick.

Laredo resident Rhonda Lee Walker is set to appear for a detention hearing before U.S. Magistrate Judge Christopher Dos Santos today at 1:30 p.m.

The criminal complaint alleges that on Jan. 2, 2021, Walker used her official position to assist a foreign national into the country. According to the charges, Walker improperly used another officer’s computer login information to help the Mexican woman to enter the United States through the Laredo Port of Entry.  The woman allegedly had no legal status to reside or work in the United States. However, Walker intended for the woman to illegally enter the country and work for her as a housekeeper and nanny, according to the complaint. The charges also allege she had sent money to the woman in Mexico to facilitate her arrival.

Walker also allegedly lied to authorities. The complaint alleges she falsely claimed the woman was her aunt and denied ever sending her money.

Walker faces up to 20 years in prison if convicted of the conspiracy or knowingly transporting undocumented aliens. The penalty for knowingly making a materially false statement is a maximum five-year-term of imprisonment.

CBP - Office of Professional Responsibility is conducting the investigation. Assistant U.S. Attorney Francisco J. Rodriguez is prosecuting the case.

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

HOUSTON –  U.S. Attorney Ryan K. Patrick has announced he will resign as chief law enforcement officer for the Southern District of Texas (SDTX) effective midnight Feb. 28.  

“It has been the honor of a lifetime to serve our nation and our state as United States Attorney,” said Patrick. “The Southern District is staffed with amazing career men and women who wake up every day ready to represent the United States, and I consider it a high honor that I was able to do the same alongside them for the past three years.”

Patrick was the 23rd presidentially-appointed U.S. Attorney for the Southern District of Texas (SDTX). He was responsible for prosecuting and defending the interests of the United States in one of the largest districts in the country - covering 44,000 square miles and representing nearly nine million people. He oversaw over 450 employees, including approximately 210 Assistant U.S. Attorneys who cover the seven offices across the district.

In just over three years as U.S. Attorney, prosecutors in his office charged nearly 25,000 defendants in almost 22,000 cases consistently ranking as the top or second highest district nationally in overall criminal prosecutions. In fact, felony prosecutions increased 39% in fiscal year 2019 from the previous 12% increase, setting a new case record. Overall, criminal matters referred to the office increased 121% in his first year. The office maintained a 95-96% conviction rate while Patrick served as U.S. Attorney.

Patrick began serving as U.S. Attorney Jan. 8, 2018. In his first year alone, his office found itself at the forefront of a nationwide immigration debate, in the middle of investigating one of the deadliest school shootings and dealing with the complexities associated with an almost unprecedented budget sequestration.

Soon after his arrival to the office in 2018, Patrick emerged as a prominent leader of the ever-increasing immigration debate. He frequently discussed and addressed challenging border issues and protecting people from the harms associated with illegal immigration and human smuggling.

In May 2018, the district also saw the tragedy of the deadly school shooting in Santa Fe. Patrick witnessed the aftermath firsthand. He communicated with parents and others and worked with federal, state and local law enforcement, pledging office resources wherever needed.

Also in 2018, Patrick significantly starting increasing staffing in what is now the busiest criminal docket in the country. The office hired more than 80 attorneys and 80 support staff during his tenure to meet increasing caseloads in South Texas and Houston – due in part to the rising number of illegal entrants and reentrants in Laredo, McAllen and Brownsville, spiking violent street crime in Houston and Corpus Christi and the need for a cadre of civil prosecutors for border fence construction projects along the Rio Grande.

During his administration, the district saw the arrest, conviction and sentencing of a unique case against a local couple who committed international kidnapping of their grandson. Similarly, Patrick fought for the rights of victims, as evidenced by the unprecedented check presented to a woman subjected to labor trafficking. “This woman now has a better chance at a fresh start,” he said.

Particular emphasis in Houston was placed on prosecuting violent crime, with significant prosecutions for bank and armored robberies as well as firearms offenses. In 2019, the SDTX increased violent crime prosecutions by 57%. That year, a judge granted to government’s request for an upward variance and sent a Houston man to prison for 540 months for the killing of a postal worker and another imposed life sentences for an armored car murder crew. The office also pursued similar crimes in other divisions, such as a Laredoan who was ordered to serve 300 months for carjacking and other violent crimes.

The district also saw the first increase in drug prosecutions in five years thanks to a renewed emphasis on local impact drug cases including deadly synthetic drugs and the growing opioid epidemic. In Brownsville, for example, a local man is now serving life in prison for his conviction of meth distribution. Corpus Christi also saw the conviction and sentencing of eight people involved in the deadly distribution of synthetic cannabinoids.

Fraud has also been a consistent problem SDTX prosecutors have battled. One notable case diligently pursued under his administration involved a woman who swindled professional athletes out of millions. She later received the maximum sentence under federal law.  

Patrick also placed a significant emphasis on matters of public corruption, believing that those in positions of public trust must be held to the highest levels of integrity. Under Patrick’s leadership, former Houston police officers now face federal civil rights charges. A former Texas judge himself, Patrick was also particularly incensed with a state judge ultimately sent to prison for bribery and obstructing justice, noting “He didn’t just tip the scales of justice, he knocked it over with a wad of cash and didn’t look back.”

Patrick also noted “The protection of life is the most sacred job law enforcement has.” Two notable matters of national security that began under his administration remain pending – one against a Sugar Land man who is pending trial and the other who was convicted of attempting to provide material support to a foreign terrorist organization. 

Not to be forgotten is the large caseload of civil litigation in some of the most difficult and important cases the government faces, including resolution of the border fence issues, defending serious medical malpractice claims and recovering millions in criminal debt and civil fraud. Of note, a Laredo doctor Laredo eye doctor paid over $3M to resolve fraud claims. The division’s civil rights group  also helped resolve numerous claims such as an employment discrimination matter on behalf of U.S. Army National Guard reservist.

Additionally, the SDTX continued to consistently rank as one of highest in terms of federal health care fraud prosecutions throughout the nation. Continuing its partnership with the Health Care Fraud Strike Force, the district successfully convicted durable medical equipment owners, doctors, billers and many more to include a Texas rheumatologist for a $325 million health care fraud scheme. Patrick noted “Patients were put through unneeded anxiety and pain so the doctor could make millions. He won’t need it where he’s headed.”

Under his leadership, prosecutors also continued the fight in bringing criminals to justice and protecting the most vulnerable members of our society through the efforts of Project Safe Childhood. In addition to speaking at annual Children’s Assessment Center’s kickoff events, he was also proud to open the new Human Trafficking Rescue Alliance offices. The SDTX convicted, on average, one defendant each week charged with these types of crimes during his tenure. Notable matters included men who are now serving life in federal prison for stealing the childhood of their young victims - one who exploited a barely teenage girl he met via social media and another who trafficked a 10-year-old girl for three years.

During his tenure, Patrick also lead other efforts, such as hosting roundtables on sexual harassment in housing and in the workplace and helped SDTX become part of the Transnational Elder Fraud Task Force.

Patrick is also a strong advocate of our law enforcement partners, placing an emphasis on outreach to them and making sure every chief, sheriff and constable had his phone number. He strongly conveyed that federal law enforcement was willing to assist any agency with any problem, to include cases he cited as “white collar storm looting” in relation to Hurricane Harvey.

Patrick began his career as an Assistant District Attorney in Harris County. During that time, he prosecuted all types of criminal cases, including spending three years as an on-call prosecutor and investigator with the Vehicle Crimes Section focusing on drunk driving fatalities. He finished his time at the office as a member of the Major Offenders Division.

In 2012, then Texas Governor Rick Perry appointed Patrick Presiding Judge of the 177th state district court. He was elected to a full four-year-term later in 2012.

Immediately prior to serving as U.S. Attorney, Patrick was in private practice.

Patrick graduated from Baylor University in 2001 and South Texas College of Law in 2006. He is married with four children.

McALLEN, Texas – A 65-year-old Mexican national has received a federal prison sentence following his conviction in a conspiracy to possess with intent to distribute approximately two kilograms of cocaine, announced U.S. Attorney Ryan K. Patrick.

Jorge Luis Perez-Cortez pleaded guilty Dec. 3, 2020.  

Today, U.S. District Judge Micaela Alvarez upwardly departed from the U.S. Sentencing Guidelines and ordered Perez-Cortez to serve 80 months in prison. Not a U.S. citizen, he is expected to face removal proceedings following his sentence. At the hearing, Judge Alvarez rebuked Perez-Cortez for returning to the United States soon after his prior removal and involving himself and his son in cocaine trafficking. He further noted Perez-Cortez's criminal history.

His son - Jorge de Jesus Perez, 31, of Mission – was also convicted in the scheme and previously sentenced to 24 months to be immediately followed by three years of supervised release.

On May 22, 2020, Perez-Cortez and his son picked up two kilograms of cocaine and traveled to a McDonald’s near Edinburg. Law enforcement approached, after which Perez-Cortez admitted he was the one responsible for coordinating the drug transaction, while his son was just his means of transportation. They  had intended for it to be delivered to Houston. 

The investigation revealed several incriminating messages on Perez-Cortez’s cell phone linking him to a drug trafficking ring. 

Perez-Cortez 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. Assistant U.S. Attorney Matthew Redavid prosecuted the case.

McALLEN, Texas — A 34-year-old Mercedes resident has been ordered to federal prison after admitting he intended to engage in sexual activity with a young female, announced U.S. Attorney Ryan K. Patrick.

Jason Hernandez pleaded guilty Dec. 2, 2020.

Today, U.S. District Judge Micaela Alvarez sentenced him to 140 months in federal prison. In handing down the sentence, the court noted that unlike many other crimes, Hernandez was not motivated by the desire to make money, instead by his own immoral purposes and desires. The court further noted Hernandez clearly intended to engage in sexual activity with a minor as he had arrived at the meeting location with condoms in his possession.

Hernandez was further ordered to serve 10 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. He will also be ordered to register as a sex offender.

“With ever increasing access to communication platforms, we must continue to stay a step ahead of those who exploit technology to facilitate some of the worst crimes in modern society. The defendant in this case will serve the next several years in prison for his unfathomable acts,” said Acting Special Agent in Charge Craig Larrabee of Immigration and Customs Enforcement’s Homeland Security Investigations (HSI). “ HSI will continue to dedicate law enforcement resources to identify and bring to justice child predators who traumatize and victimize children.”

Between the months of August and September 2020, Hernandez enticed an individual he believed to be a 13-year-old female on a social media application. In their communications, Hernandez had graphically described sexual acts he desired to perform with the minor and expressed his desire to impregnate her.

Hernandez then requested to meet the alleged minor in person at an agreed upon location at a park in Harlingen, at which time he expected to engage in sexual activity with her. However, law enforcement took him into custody upon his arrival.

HSI’s Rio Grande Valley Child Exploitation Task Force conducted the investigation.

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

HOUSTON – A local scientist and his southwest Houston invention and technology company have agreed to pay nearly $150,000 to resolve allegations they defrauded the National Science Foundation (NSF) and the Navy, announced U.S. Attorney Ryan K. Patrick.

Dr. Rouzbeh Shahsavari, 40, is the owner and chief scientist at C-Crete Technologies Ltd. in Stafford. Today, he has paid $147,589 to settle allegations they violated the False Claims Act.

“Fraud targeting grants and loans for small business development has an outsized impact on recipients and those left out,” said Patrick. “Some deserving and legitimate small business missed out because this man lied. The taxpayer is now being made right.”

Shahsavari and C-Crete allegedly made material misrepresentations to NSF and the Navy in applications for Small Business Technology Transfer (STTR) and Small Business Innovation Research (SBIR) awards in 2015 and 2016. STTR and SBIR programs are highly competitive federal programs. They are designed to encourage small, independent and domestically owned businesses through the investment of federal funds to conduct research and development in areas that further United States interests, including those concerning national health, welfare and defense. Only qualified small businesses that meet strict program requirements are eligible for awards.

STTR and SBIR award applicants are required to designate an employee as the principal investigator for the proposed research. His/her qualifications and credentials are a key component of award decisions. STTR award applicants must also have a subaward agreement with a collaborating research partner.

C-Crete and Shahsavari represented they had the mandatory agreement with Rice University. However, the investigation revealed they did not. They also failed to notify Navy personnel that their designated principal investigator had stopped working for C-Crete almost three months before the award was granted.

In both circumstances C-Crete was ineligible, but still accepted grant funds.

“It is imperative that federal award recipients provide true and accurate representations and certifications during all phases of the grant process,” said NSF Inspector General Allison Lerner. “The SBIR/STTR program is a valuable tool in advancing NSF’s mission to promote the progress of science by increasing opportunities for innovative research by small businesses. It is essential to protect the integrity of this program.”

NSF-Office of Inspector General and Naval Criminal Investigative Service conducted the coordinated investigation with the assistance of the U.S. Attorney’s Office. Assistant U.S. Attorney Julie Redlinger handled the matter.

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