Southern District of Texas

LAREDO, Texas – A grand jury sitting in Laredo had returned an indictment charging an Austin woman for illegally smuggling defense articles and approximately $100K, announced U.S. Attorney Ryan K. Patrick.

On Jan. 18, 2021, authorities apprehended Lizzette Jaimes at the Lincoln Juarez Bridge port of entry in Laredo attempting to travel into Mexico, according to the charges. The indictment alleges she appeared nervous at primary inspection. Law enforcement referred her for a more thorough inspection, at which time they allegedly searched her luggage and other items in the rear seat of the truck.

The charges allege one of the items was a black duffle bag containing women’s clothing. Authorities allegedly felt a square object in the bottom of the bag, moved the clothing and found several stacks of U.S. currency wrapped in duct tape. It totaled $95,000, according to the allegations.

Law enforcement continued to search the truck and also allegedly found 240 rounds of handgun ammunition, an additional $4,747 in cash, three GPS devices wired in difference locations and nine handguns.  

If convicted, Jaimes faces up to 10 years in prison and a possible $250,000 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 32-year-old man has been charged with conspiracy to transport illegal aliens, announced U.S. Attorney Ryan K. Patrick.

Originally charged by criminal complaint, a Laredo grand jury returned an indictment today against Brodrick Keith Rhodes. He will appear before U.S. a magistrate judge in the near future.

The charges allege that on Jan. 12, authorities stopped Rhodes after he approached the Freer Border Patrol checkpoint driving a semi-truck and refrigerated trailer. He had claimed he was hauling lettuce and produced a bill of lading, according to the complaint.

However, law enforcement allegedly noticed discrepancies and that Rhodes appeared nervous. Further, the refrigerated trailer was set to 30 degrees but the internal temperature was at 68, according to the charges.

After a K-9 alerted to possible presence of contraband in the cargo area of the trailer and a subsequent inspection, authorities ultimately discovered 119 illegal aliens, according to the complaint.  

Rhodes allegedly claimed he worked for a business in La Porte, but the bill of lading indicated he was transporting lettuce from a Laredo produce company to a location in Sugar Land. The business indicated Rhodes had never been employed with them nor do they transport outside the Houston area, according to the charges. Further, the complaint alleges the other two companies confirmed they had no record of the shipment.

According to the charges, some of the transported aliens said they had been taken to and told to get in the truck. It left soon after and did not stop until it reached the checkpoint, according to the allegations.  

If convicted, Rhodes faces up to 10 years in prison and a maximum possible $250,000 fine.  

Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of Border Patrol. 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.

GALVESTON, Texas – A 45-year-0ld resident of Watford City, North Dakota, has been ordered to prison for his conviction of assault within the special maritime and territorial jurisdiction of the United States, announced U.S. Attorney Ryan K. Patrick.

Hector Fernando Blanco pleaded guilty Jan. 17, 2020.  

Today, U.S. District Judge Jeffrey Brown ordered Blanco to serve a total of 36 months in federal prison to be immediately followed by two years of supervised release.  

At the time of his plea, Blanco admitted he attempted to strangle and suffocate a woman while aboard a cruise ship off the coast of Galveston. He acknowledged he had been dating and intimate with the victim.

“No excuse can justify Hector Blanco’s violent actions that turned a dream vacation into a dreadful nightmare for his victim,” said Special Agent in Charge Perrye K. Turner of the FBI. “I am extremely proud of FBI special agents in the Texas City Resident Agency and our victim specialists who provided compassionate support to the brave survivor who reported this crime.”

On Nov. 18, 2018, Blanco intentionally assaulted the victim in his cabin aboard a Royal Caribbean cruise ship. He placed his hand and then a bath towel over her mouth, then twisted a towel around her neck and dragged her on the floor of the cabin. Blanco tripped and she was able to run out of the cabin and report the incident to security personnel aboard the ship.

The assault occurred aboard the Liberty of the Seas, which at the time was a foreign vessel registered in the Bahamas. At the time of the assault, the cruise ship was located approximately 45 miles from Galveston in the Gulf of Mexico.

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

The FBI conducted the investigation. Assistant U.S. Attorney Kenneth Cusick is prosecuting the case.

VICTORIA, Texas – A 19-year old Bloomington man has been charged with assault on a federal officer and discharging  a firearm in furtherance of a crime of violence, announced U.S. Attorney Ryan K. Patrick.

Jose Luis Vazquez is expected to make his initial appearance before U.S. Magistrate Judge Jason B. Libby at 10 a.m. today in Corpus Christi.

The criminal complaint, filed Feb. 4, alleges law enforcement had attempted to arrest Vazquez at his residence on the afternoon of Feb. 3. They announced their presence and called out to him, according to the allegations.

The complaint alleges Vazquez then exited the location and immediately started firing a weapon at authorities before retreating inside the home. He appeared again with a pistol in his hand, according to the charges.

Law enforcement allegedly then returned fire, injuring Vazquez.

During the exchange, fragments of Vasquez’s gunfire allegedly hit the body of one of the authorities as well as the vehicle they were using for cover. 

The complaint alleges Vazquez had fired a Smith and Wesson M&P40, .40 caliber semi-automatic pistol during the altercation. 

If convicted, Vazquez faces up to 20 years in Federal Prison.

The FBI; Bureau of Alcohol, Tobacco, Firearms and Explosives; Texas Rangers and U.S. Marshals Service are conducting the investigation with assistance from the Victoria County Sheriff’s Office and Victoria County District Attorney’s Office. Assistant U.S. Attorney Patti Hubert Booth is prosecuting this 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 29-year-old legal permanent resident of McAllen has been sentenced following his conviction in Corpus Christi federal court of conspiring to possess and distributing over 21 kilos of meth, announced U.S. Attorney Ryan K. Patrick.

Adrian Lechuga Rievoles pleaded guilty Dec. 30, 2019.

Today, Senior U.S. District Judge Janis Graham Jack ordered him to serve a total of 168 months in federal prison to be followed by five years of supervised release. At the hearing, the court found he was not truthful about his role in the conspiracy.

On Feb. 9, 2019, authorities discovered disconnected speaker boxes in the trunk of a Ford Focus at the U.S. Border Patrol checkpoint near Falfurrias which appeared to be usually heavy. They ultimately found multiple bundles of meth weighing over 21.53 kilograms with a value of more than $1 million.

The investigation led to Rievoles. Law enforcement confirmed his involvement as an organizer in a vast meth distribution network which covered all major Texas cities and included multiple states along the Gulf Coast.

Authorities apprehended Rievoles July 29, 2019, as he attempted to enter the United States from Mexico. 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 Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorney Neel Kapur is prosecuting the case.

HOUSTON – A 46-year-old Katy man has been ordered to federal prison after he admitted to embezzling over $2 million from a local oil services company, announced U.S. Attorney Ryan. K. Patrick.  

Robert Andrew Bishop pleaded guilty Oct. 14, 2020.

Today, U.S. District Judge Keith Ellison ordered him to serve a 41-month sentence to be immediately followed by two years of supervised release. At the hearing, the court heard additional testimony from the victim that detailed the extent and length of his theft, along with the devastating effects it had on her business. In handing down the sentence, Judge Ellison noted the length of the theft and Bishop’s violation of his employer’s trust.

Bishop was the vice president of resource management at International Professional Management (IPM), an oil services company located in Houston. As part of his duties, he was in charge of securing short term loans to cover IPM’s monthly operating capital.

At the time of his plea, he admitted he would inflate the loan amount needed and then divert the excess money to fake vendor accounts he controlled.

Over the span of approximately six years, Bishop diverted roughly $2.1 million from the company’s operating expenses.

The owners of IPM discovered his fraud scheme in August 2019.

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

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

McALLEN, Texas – A 50-year-old executive is headed to prison for falsely telling patients they had mere months to live and increasing revenue by enrolling them in hospice programs for which they were not qualified nor needed.

A federal jury in Brownsville convicted Henry McInnis, 50, Harlingen, in November 2019 of one count each of conspiracy to commit health care fraud, conspiracy to commit money laundering, obstruction of justice as well as six counts of health care fraud.

Today, U.S. District Judge Rolanda Olvera ordered him to serve a total of 15 years in federal prison.

McInnis’s co-conspirator and owner of the hospice and home health entities, Rodney Mesquias, 50, San Antonio, was also convicted following the November 2019 trial. He was later sentenced to 240 months imprisonment. Two others have pleaded guilty and are awaiting sentencing.

“McInnis, as CEO of the company, directly oversaw a reprehensible criminal scheme that involved the submission of over $150 million in fraudulent bills, the falsification of patients’ medical records, and the payment of unlawful kickbacks,” said Acting Assistant Attorney General Nicholas L. McQuaid, of the Justice Department’s Criminal Division. “The defendant preyed upon some of the most vulnerable members of our society, including many who suffered from diminished mental capacity and who were falsely and cruelly told by co-conspirators that they had only months to live. Today’s significant sentence demonstrates the department’s continued commitment to pursuing individuals, at all levels of corporate management, who engage in criminal schemes that prioritize profits over patient care.”  

“Families seek to give comfort and support to their ailing loved ones when all other medical options are gone,” said Special Agent in Charge Christopher Combs of the FBI’s San Antonio Field Office. “It is unconscionable and evil to prey upon the most vulnerable in our community to commit fraud against government-funded programs. The FBI is committed to protecting our communities from those who may not have the strength to protect themselves.”

From 2009 to 2018, McInnis, Mesquias and others orchestrated a scheme that involved the submission of over $150 million in false and fraudulent claims for hospice and other health care services. McInnis served as the top corporate officer and administrator and oversaw the day-to-day operations of the Merida Group, a large health care company that operated dozens of locations throughout Texas. 

According to evidence presented at trial, McInnis, Mesquias and Merida Group adopted a strategy to market their hospice programs as providing medical benefits “you don’t have to die to use.” They aggressively enrolled patients with long-term incurable diseases, such as Alzheimers and dementia, as well as patients with limited mental capacity who lived at group homes, nursing homes and in housing projects. In some instances, Merida Group marketers falsely told patients they had less than six months to live. They even sent chaplains to the patients based on the false pretense they were near death. The chaplains would discuss last rites and other preparations for imminent death with the patients.

In order to receive reimbursement for hospice services, Medicare requires patients to be suffering from a terminal illness expected to result in death within six months. Not only were some of the patients not expected to die within that timeframe, they were walking, driving, working and, in some instances, even coaching athletic sporting events. However, McInnis and his co-conspirators kept patients on hospice services for multiple years in order to increase revenue from Medicare. Placing patients on such palliative hospice care meant the patients were unable to obtain medical coverage for curative medical services.

In addition to placing unqualified patients on hospice care, McInnis and his co-conspirators also endeavored to keep patients who did qualify for hospice care alive for as long as possible for their own monetary gain. At trial, a co-conspirator testified and explained “the way you make money is by keeping them alive as long as possible.” The jury heard that this included engaging in surgical and other medical interventions designed to extend life through the use of medical technologies, even when such interventions were not consistent with the goals of hospice care. 

McInnis had no medical training and worked previously as an electrician. However, he acted as the de facto director of nursing for the Merida Group. Witnesses at trial testified McInnis directed employees to admit unqualified patients to hospice and home health, keep unqualified patients on services for long periods of time and fired and reprimanded employees who refused to participate in the scheme.

McInnis also oversaw and enforced a company-wide practice of falsifying medical records to conceal the scheme. Multiple witnesses testified McInnis ordered employees to alter medical records to make it appear patients were terminally ill. In reality, some were employed or even participating in sporting events. The jury also heard that McInnis explained the purpose of the falsified records was to allow the Merida Group to pass insurance company audits.

As CEO, McInnis also adopted a policy that paid illegal kickbacks. They directed bribes to physicians under the guise of medical director fees to certify unqualified patients for hospice and home health. In some cases, they improperly offered payoffs to marketers in exchange for recruitment of patients who could be placed on extremely expensive hospice services. 

The evidence further established McInnis and Mesquias obstructed justice by causing the creation of false and fictitious medical records that allegedly showed patients needed the hospice services. McInnis and others tried to provide these to a federal grand jury in a failed attempt to avoid indictment. The records added false diagnostic information, making it appear patients were dying and eligible for hospice services when, in fact, they were not.

The Department of Health and Human Service – Office of Inspector General (DHHS-OIG); FBI and Texas Health and Human Services Commission conducted the investigation. Assistant Chief Jacob Foster and Trial Attorney Kevin Lowell of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Andrew Swartz 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, DHHS Centers for Medicare & Medicaid Services, working in conjunction with the DHHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

The CEO of a Texas-based group of hospice and home health entities was sentenced today to 15 years in prison for falsely telling thousands of patients with long-term incurable diseases they had less than six months to live in order to enroll the patients in hospice programs for which they were otherwise unqualified, thereby increasing revenue to the company.  

Henry McInnis, 50, of Harlingen, Texas was convicted by a federal jury in Brownsville, Texas, in November 2019 of one count each of conspiracy to commit health care fraud, conspiracy to commit money laundering, obstruction of justice, as well as six counts of health care fraud.

McInnis’s co-conspirator, Rodney Mesquias, 50, the owner of the hospice and home health entities, was also convicted following the November 2019 trial. He was sentenced to 240 months in prison in December 2020. Two other co-conspirators have pleaded guilty and are awaiting sentencing.

“McInnis, as CEO of the company, directly oversaw a reprehensible criminal scheme that involved the submission of over $150 million in fraudulent bills, the falsification of patients’ medical records, and the payment of unlawful kickbacks,” said Acting Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “McInnis preyed upon some of the most vulnerable members of our society, including many who suffered from diminished mental capacity and who were falsely and cruelly told by co-conspirators that they had only months to live. Today’s significant sentence demonstrates the department’s continued commitment to pursuing individuals, at all levels of corporate management, who engage in criminal schemes that prioritize profits over patient care.”   

“Families seek to give comfort and support to their ailing loved ones when all other medical options are gone,” said Special Agent in Charge Christopher Combs of the FBI’s San Antonio Field Office. “It is unconscionable and evil to prey upon the most vulnerable in our community to commit fraud against government-funded programs. The FBI is committed to protecting our communities from those who may not have the strength to protect themselves.”

“McInnis and his co-conspirator’s reprehensible and deceitful actions to defraud Medicare weren’t without harm:  vulnerable beneficiaries were unnecessarily enrolled in hospice care, preventing them from accessing needed curative care,” said Special Agent in Charge Miranda L. Bennett, U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Region. “With our law enforcement partners, we will continue to investigate those who put ill-gotten profits above the well-being of patients in our health care system.”

From 2009 to 2018, McInnis, Mesquias and others orchestrated a scheme that involved the submission of over $150 million in false and fraudulent claims for hospice and other health care services. McInnis served as the top corporate officer and administrator and oversaw the day-to-day operations of the Merida Group, a large health care company that operated dozens of locations throughout Texas. 

McInnis had no medical training and worked previously as an electrician. However, he acted as the de facto director of nursing for the Merida Group. Witnesses at trial testified McInnis directed employees to admit unqualified patients to hospice and home health, keep unqualified patients on services for long periods of time and fired and reprimanded employees who refused to participate in the scheme.

McInnis also oversaw and enforced a company-wide practice of falsifying medical records to conceal the scheme. Multiple witnesses testified McInnis ordered employees to alter medical records to make it appear patients were terminally ill. In reality, some were employed or even participating in sporting events. The jury also heard that McInnis explained the purpose of the falsified records was to allow the Merida Group to pass insurance company audits.

As CEO, McInnis also adopted a policy that paid illegal kickbacks. They directed bribes to physicians under the guise of medical director fees to certify unqualified patients for hospice and home health. In some cases, they improperly offered payoffs to marketers in exchange for recruitment of patients who could be placed on extremely expensive hospice services. 

HHS-OIG, FBI and Texas Health and Human Services Commission conducted the investigation. Assistant Chief Jacob Foster and Trial Attorney Kevin Lowell of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Andrew Swartz 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, 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.

LAREDO, Texas – A 42-year-old Brownsville resident has been sentenced following her conviction in Laredo federal court to conspiring with others to import more than 10 kilograms of meth from Mexico, announced U.S. Attorney Ryan K. Patrick. 

Ana Lisa Lopez pleaded guilty Dec. 3, 2020, to importing meth and conspiracy to do so.   

Today, U.S. District Judge Marina Garcia Marmolejo ordered Lopez to serve a 63-month sentence to be immediately followed by three years of supervised release. In handing down the sentence, the court noted the serious nature and amount of narcotics she attempted to smuggle.

On Nov. 8, 2019, Lopez approached the Juarez-Lincoln International Bridge in Laredo driving a Chevrolet Aveo. At that time, authorities conducted an inspection of the vehicle and found 21 bundles of meth concealed within the door frames.

The drugs weighed approximately 10.5 kilograms and have a street value of approximately $73,500.

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

The Drug Enforcement Administration conducted the investigation with assistance from Customs and Border Protection. Assistant U.S. Attorney Yoona Lim is prosecuting the case.

CORPUS CHRISTI, Texas – A 42-year-old San Antonio man has been ordered to federal prison after he admitted to wire fraud that resulted in a loss of $1,878,615.84, announced U.S. Attorney Ryan K. Patrick.

Robert Morales Munguia Jr. pleaded guilty July 28, 2020.

Today, U.S. District Judge David Morales handed Munguia a 24-month sentence to be immediately followed by three years of supervised release. He was further ordered to pay a $1,878,615.84 in restitution. At the hearing, the court heard additional testimony from the victim describing the effect of the fraud on the corporation.

Munguia knowingly submitted false work orders to his company in order to receive gifts and payments from outside vendors. He also admitted he knew the work would never be completed.

From Feb. 27, 2015, until April 12, 2018, Munguia worked as an environmental specialist at a Texas-based corporation. During that time, he conspired with outside contractors to bill for 68 false work orders that were never completed. In return, he received various gifts and cash.

As a result of the scheme, the company paid almost $2 million.

Mungui 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 Secret Service conducted the investigation. Assistant U.S. Attorney (AUSA) Robert Thorpe and former AUSA Jeremy C. Fugate prosecuted the case.

McALLEN, Texas – A 53-year-old Los Ebanos resident has been ordered to federal prison for his role in a conspiracy to transport undocumented aliens, announced U.S. Attorney Ryan K. Patrick along with Acting Special Agent in Charge Craig Larrabee of Immigration and Customs Enforcement’s Homeland Security Investigations (HSI).

Benito Lopez III aka Chamuco, identified as a member of the Bandidos Outlaw Motorcycle Organization, pleaded guilty Feb. 3, 2020.

Today, U.S. District Judge Micaela Alvarez handed him an 82-month term of imprisonment to be immediately followed by three years of supervised release. The court found Lopez responsible for smuggling 25-99 undocumented aliens over the course of a four-month conspiracy. Additionally, he had created a substantial risk of death or serious bodily injury based on the conditions in which he housed the undocumented aliens. Judge Alvarez enhanced the sentence, finding Lopez obstructed justice by providing detailed confidential information to co-conspirators regarding the investigation. He was also in possession of firearms and used minors during and in furtherance of the conspiracy.

At the hearings, which took place over the course of two days – Nov. 3, 2020, and today - the court heard how Lopez seriously jeopardized an ongoing investigation into an organization capable of smuggling hundreds of undocumented aliens through the Los Ebanos area. The court also heard testimony regarding the extensive surveillance system he utilized to conduct counter-surveillance of law enforcement in order to further the conspiracy.

In handing down the sentence, Judge Alvarez noted how Lopez endangered others, both during the conspiracy and while on bond. She stated she needed to impose a sentence to promote respect for the rule of law and deter his future criminal conduct.

“HSI is dedicated to working closely with all of our law enforcement partners to effectively  identify, arrest and prosecute individuals involved in exploiting people,” said Larrabee. “Criminals who illegally smuggle people into and throughout the country place personal profit ahead of public safety. For this reason, HSI will continue to utilize its broad authorities to dismantle human smuggling organizations."

On Oct. 1, 2019, authorities conducted surveillance on what they suspected to be an alien stash house located across the street from the Rio Grande river in Los Ebanos. There, they observed several suspected undocumented aliens fleeing from the location. Law enforcement quickly apprehended a total of seven of the individuals, all determined to be aliens illegally present in the United States.

At that time, they identified Lopez as the caretaker of the stash house where he held them in a 5-by-8 foot dilapidated bathroom with no electricity, anything to eat or drink or running water for approximately 12 hours before they managed to escape.

Law enforcement arrested Lopez at the stash house on Oct. 4 for his role in the conspiracy. He he was paid for each undocumented alien successfully crossed from Mexico and out of the Los Ebanos area.

Lopez has been in custody since he violated his conditions of release where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

HSI and Border Patrol conducted the investigation. Assistant U.S. Attorney Matthew Redavid prosecuted the case.

HOUSTON – A 43-year-old local man has been sentenced to nearly 42 years for the robberies of multiple phone and others stores during Christmas week in 2017, announced U.S. Attorney Ryan K. Patrick.

A Houston federal jury deliberated for two hours before returning guilty verdicts against Robert Charles Wooten following a two-day trial. He was convicted of five counts of interference with commerce by robbery and five related charges of using, carrying or brandishing a firearm during and in relation to a crime of violence.

Today, U.S. District Lynn H. Hughes handed Wooten a combined 80-month sentence for the robberies. He also received an additional 420 months for the firearms charges which must be served consecutively to the other sentence imposed. At the hearing, the court noted that although his prior offenses were not violent in nature, Wooten is a menace to society.

“This investigation shows the impact that law enforcement has against violent criminals who use firearms,” said Special Agent in Charge Fred Milanowski of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).

Wooten was convicted of the armed robbery of the Walgreens on Little York on Christmas Day in 2017. Over the course of the next five days, he also committed the robberies of three Metro PCS stores, Bayou Pawn on Shepherd and Family Dollar on Tidwell, all located near his residence.

At trial, the jury heard Wooten has numerous tattoos on his face, but would enter the commercial businesses wearing make-up, cream or bandages to aid in covering them. He would then show a gun to the employees and demand money.  

Testimony revealed that during the Dec. 25 Walgreens robbery, he waited in line before approaching the victim. He then showed a firearm and demanded the cashier place money and cigarettes into a duffle bag he had brought with him into the store.

He then committed similar robberies of the Metro PCS on North Shepherd and W. Little York, Dec. 27 and 28, respectively, during which time employees were frightened and complied with his demands.  

Then, on Dec. 29, Wooten entered the Bayou Pawn – a shop where he would frequently conduct business. Upon his arrival, he initially acted as though he wanted to sell a bicycle. Once the employee was near him, Wooten pushed a firearm into her side and demanded money. The employee was afraid.

The manager of the store testified that he had been watching from the back. He saw Wooten put his hands on the employee and came out to confront him, not knowing Wooten was actually trying to rob the store. Wooten acted as if nothing was wrong and asked the manager to come outside and look at the bicycle. The victim then called the police.  

The same day, Wooten asked his son to drive him to a separate Metro PCS. He did so and went door to Family Dollar. Soon after, Wooten stuck his head inside the store and told his son they needed to leave immediately. Wooten’s son got in the car, but noticed people taking photos of him, his dad and his vehicle. He asked Wooten about it, but he just ordered his son to drive.   

The son later learned his dad had robbed the Metro PCS and alerted authorities.

Authorities identified Wooten based on the make-up and similar items he used in the robberies. Several victims also testified and identified him as the one who terrorized them during the robberies.

The defense attempted to convince the jury that the witnesses had misidentified Wooten. They did not believe those claims and found him guilty as charged.

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

ATF and Houston Police Department conducted the investigation.

Assistant U.S. Attorneys Jill Stotts and Erin Epley are prosecuting the case.

HOUSTON – A former natural gas trader pleaded guilty today to conspiracy to commit commodities fraud and wire fraud for his role in an insider trading scheme.

John Ed James, 51, Katy, pleaded guilty to one count of conspiracy to commit commodities fraud and wire fraud before U.S. District Judge Vanessa Gilmore. Sentencing has been scheduled for April 26.  

“That executives continue to use inside nonpublic information for their own gain, illustrates that prosecutors must investigate and pursue these cases,” said U.S. Attorney Ryan K. Patrick. “These conspirators cooked the books and shared the loot - plain and simple.”

“When individuals engage in deceptive trade practices and manipulate the commodities market for their personal gain, they undermine the public’s confidence in the U.S. markets and stack the deck against other traders and investors,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “The department and our law enforcement partners will continue to pursue and prosecute those who engage in such activity.”

“Commodities fraud and insider trading undermine the integrity of the markets, in this case the energy market which plays a key role in the Houston area economy,” said Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office. “The FBI will continue to combat criminal violations of the commodities laws to eliminate unscrupulous activity and protect market participants so that the public will continue to have trust in the system.”

As part of his guilty plea, James admitted he conspired with others to misappropriate material, nonpublic information and to use that information to engage in fraudulent, pre-arranged trades in natural gas futures contracts. These pre-arranged trades generated approximately $966,403 in illicit proceeds. He further admitted the net profits from these fraudulent trades were split between himself and others involved in the fraudulent trading scheme. James also admitted he and others agreed to falsely document certain proceeds as income on IRS forms in part to conceal the true nature of the funds and to make the illicit profits appear to be legitimate income paid. 

In a related case, Marcus Schultz, 41, previously pleaded guilty before Judge Gilmore July 20, 2020, to a one-count information charging him with conspiracy to commit wire fraud and to violate various provisions of the Commodity Exchange Act including 17 C.F.R. § 180.1. Sentencing is scheduled for June 14.

This matter marks the Department of Justice’s first effort to prosecute insider trading in the commodity markets under Section 180.1.     

The FBI’s Houston Field Office and IRS-Criminal Investigation’s Houston Field Office conducted the investigation. Assistant U.S. Attorney Suzanne Elmilady is prosecuting the case along with Trial Attorneys Jennifer Farer, Drew Bradylyons and Della Sentilles of the Criminal Division’s Fraud Section.

The Criminal Division’s Fraud Section plays a pivotal role in the Department of Justice’s fight against white collar crime around the country and is the national leader in prosecuting fraud and manipulation in the U.S. commodity markets.– A former natural gas trader pleaded guilty today to conspiracy to commit commodities fraud and wire fraud for his role in an insider trading scheme.

A former natural gas trader pleaded guilty today to conspiracy to commit commodities fraud and wire fraud for his role in an insider trading scheme.

John Ed James, 51, of Katy, Texas, pleaded guilty to one count of conspiracy to commit commodities fraud and wire fraud before U.S. District Judge Vanessa Gilmore of the Southern District of Texas. Sentencing has been scheduled for April 26, 2021, before Judge Gilmore. 

“When individuals engage in deceptive trade practices and manipulate the commodities market for their personal gain, they undermine the public’s confidence in the U.S. markets and stack the deck against other traders and investors,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “The department and our law enforcement partners will continue to pursue and prosecute those who engage in such activity.”

“That executives continue to use inside nonpublic information for their own gain illustrates that prosecutors must investigate and pursue these cases,” said U.S. Attorney Ryan K. Patrick of the Southern District of Texas. “These conspirators cooked the books and shared the loot – plain and simple.”

“Commodities fraud and insider trading undermine the integrity of the markets, in this case the energy market which plays a key role in the Houston area economy,” said Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office. “The FBI will continue to combat criminal violations of the commodities laws to eliminate unscrupulous activity and protect market participants so that the public will continue to have trust in the system.”

As part of his guilty plea, James admitted that he conspired with others to misappropriate material, nonpublic information and to use that information to engage in fraudulent, pre-arranged trades in natural gas futures contracts. These pre-arranged trades generated approximately $966,403 in illicit proceeds. He further admitted that the net profits from these fraudulent trades were split between himself and others involved in the fraudulent trading scheme. James also admitted that he and others agreed to falsely document certain proceeds as income on IRS forms in part to conceal the true nature of the funds and to make the illicit profits appear to be legitimate income paid. 

In a related case, Marcus Schultz, 41, previously pleaded guilty before Judge Gilmore on July 20, 2020, to a one-count information charging him with conspiracy to commit wire fraud and to violate various provisions of the Commodity Exchange Act, including 17 C.F.R. § 180.1. Sentencing is scheduled for June 14, 2021. This matter marks the Department of Justice’s first effort to prosecute insider trading in the commodity markets under Section 180.1.

This case is the result of an ongoing investigation by the FBI’s Houston Field Office and the IRS-CI’s Houston Field Office. Trial Attorneys Jennifer Farer, Drew Bradylyons, and Della Sentilles of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Suzanne Elmilady of the Southern District of Houston are prosecuting the case.

The Criminal Division’s Fraud Section plays a pivotal role in the Department of Justice’s fight against white collar crime around the country and is the national leader in prosecuting fraud and manipulation in the U.S. commodity markets.

LAREDO, Texas – A 43-year-old Mexican national who illegally resided in Laredo has been charged with harboring undocumented aliens at her residence and conspiracy to do so, announced U.S. Attorney Ryan K. Patrick.

Maria San Juana de Hoyos is set to make her initial appearance before U.S. Magistrate Judge Diana Song Quiroga at 1:30 p.m. today. Law enforcement took her into custody Jan. 27.

The criminal complaint alleges that authorities had believed de Hoyos was operating a stash house for undocumented aliens at her residence on the 3800 block of Alexandra Court in Laredo.

Law enforcement later conducted a search and found 10 individuals hiding inside the residence, according to the charges. The investigation revealed all were Mexican nationals illegally present in the United States.

If convicted, de Hoyos faces up to 20 years in federal prison.

Immigration and Customs Enforcement Homeland Security Investigations, Border Patrol and Webb County Constable’s Office conducted 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.

CORPUS CHRISTI, Texas – A 34-year-old Orange Grove man has been ordered to federal prison after he admitted to receiving child pornography, announced U.S. Attorney Ryan K. Patrick.

Cameron Michael Pittman pleaded guilty Sept. 9.

Today, U.S. District Judge Drew B. Tipton upwardly departed from the sentencing guidelines and ordered Pittman to serve a 204-month sentence. At the hearing, the court heard additional information including Pittman’s criminal history which detailed his prior conviction for indecency with a child. The court noted the guidelines did not adequately reflect Pittman’s character and history nor the seriousness of the offense. In imposing the sentence, the court noted the way Pittman’s actions have demonstrated his tendency to target children – the most vulnerable.

Pittman was further ordered to serve 10 years on supervised release during which time the court can impose a number of special conditions designed to protect children. He was also again ordered to register as a sex offender

The investigation began when the National Center for Missing and Exploited Children alerted authorities that images of child pornography were being uploaded through an IP address originating in Orange Grove. The investigation led to Pittman as the one using the e-mail and IP address.

Law enforcement conducted a search, at which time they seized multiple electronic devices from Pittman’s residence. A forensic examination later revealed images and videos of child pornography.

Pittman admitted to receiving the images. The large majority of the images and videos located on Pittman’s devices depicted the sexual exploitation of children under the age of 10.

At the time of his arrest, he was a registered sex offender and on probation for the 2nd degree felony offense of indecency with a child.

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 Corpus Christi Police Department Internet Crimes Against Children Task Force; Jim Wells County Sheriff’s Office and Probation Department; Bureau of Alcohol, Tobacco, Firearms and Explosives and Immigration and Custom’s Enforcement’s Homeland Security Investigations conducted the investigation.

Assistant U.S. Attorney Sara Popejoy prosecuted 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.

CORPUS CHRISTI, Texas – A 76-year-old Mexican national has been charged with making false statements in an application for a U.S. passport and theft of Social Security benefits, announced U.S. Attorney Ryan K. Patrick.

Alberto Betancourth Valdes allegedly used the identity of an American citizen for more than two decades. A federal grand jury returned the indictment today. He is expected to make his initial appearance before a U.S. magistrate judge in the near future. 

The criminal complaint originally filed in the case indicates Valdes submitted a renewal application for a U.S. passport by representing himself as a U.S. citizen from Texas. The passport application and documents were sent to the National Passport Center in Irving and subsequently referred to the fraud prevention unit, according to the charges. The documents were valid, according to the allegations, but the actual person had passed away in 1952.

According to the indictment, Valdes had previously been deported in 1975. He allegedly used the citizen’s identity to obtain Social Security benefits he would not have been entitled to receive under his true identity. Authorities took him into custody when he attempted to re-enter the United States using the fraudulently-obtained U.S. passport issued in the victim’s name, according to the charges.  

If convicted, Valdez faces up to 10 years in federal prison for making a false statement in an application for a passport as well as five years for Social Security benefits fraud. Each count also carries a possible $250,000 fine, upon conviction.

Social Security Administration - Office of the Inspector General, Customs and Border Protection and Department of State’s Diplomatic Security Service conducted the investigation. Assistant U.S. Attorneys Christopher Marin and Robert Thorpe are prosecuting the case.

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

HOUSTON – Four men are in custody and two are at large in relation to the theft of various opioids and stimulants such as OxyContin and Adderall, respectively, announced U.S. Attorney Ryan K. Patrick.

A federal grand jury returned the sealed indictment Oct. 20, 2020, which was unsealed today, charging Houston residents Drexel Andre Ferguson, 32, Tyshawndre Dameion Mathis, 23, Frederick Bernard Eli, 28, Kenneth Ray Griffin, 33, Latrell Rayshod Phillips, 25, and Devon Lee Hailey, 42. With the exception of Hailey and Griffin, the others have already made appearances and remain in custody pending further criminal proceedings.

Griffin and Hailey are considered fugitives and warrants remain outstanding for their arrests. Anyone with information about their whereabouts is asked to contact the FBI at 713-693-5000.

The seven-count indictment alleges three pharmacy burglaries, possession with intent to distribute Schedule II opioids and stimulants and conspiracy to do so.

Ferguson, Mathis, Eli and Phillips allegedly burglarized two Randalls pharmacies Nov. 4, and 11, 2017, respectively. The indictment also charges Ferguson, Griffin and Hailey with the burglary of a CVS pharmacy April 10, 2018.

The charges allege the theft of various Schedule II opioids such as Hydrocodone, Hydromorphone, Oxycodone and OxyContin in addition to stimulants including Amphetamine, Adderall, Dextroamphetamine, Mydayis, Lisdexamfetamine and Vyvanse.

Each man is charged with possession with intent to distribute the opioids and stimulants stolen from the pharmacies, respectively, as well as conspiracy to possess and distribute the substances collectively stolen from all three pharmacies.

For his charges, Hailey could be sentenced up to 30 years in prison, while the others face a potential 20-year-sentence.

The FBI’s multi-agency gang task force conducted the investigation which included police departments in Houston and Baytown and Harris County Sheriff’s Office. Assistant U.S. Attorneys Michael Kusin and Christine Lu are prosecuting the case.

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

LAREDO, Texas – A 45-year-old Rio Bravo resident has been ordered to federal prison following his conviction for conspiring to transport aliens within the country for a profit, announced U.S. Attorney Ryan K. Patrick.

Jose Reyes Ipina Jr. pleaded guilty Feb. 3, 2020.

Today, U.S. District Judge Marina Garcia Marmolejo handed Ipina a 57-month term of imprisonment to be immediately followed by three years of supervised release. At the hearing, the court heard additional information including evidence detailing his involvement in prior alien smuggling trips and his role as a recruiter/organizer in the alien smuggling organization.

The investigation revealed that on Nov. 8, 2019, a smuggling operation was taking place at a truck yard of Texas Highway 359 near Ranch Road in Laredo. Authorities spotted Ipina in his truck at a nearby store around the same time of the potential smuggling event. They also noticed a white tractor-trailer combination departing the truck yard and heading north on Interstate Highway 35 until stopping at a Border Patrol (BP) checkpoint for inspection.

There, a K-9 alerted to the presence of contraband. The driver – later identified as Alfredo Gutierrez Jr. – and the tractor-trailer were referred to secondary inspection where law enforcement found 29 illegal aliens hidden in the rear of his trailer. 

A search of Gutierrez’s phone revealed he had been in contact with Ipina.

The ensuing investigation later tied Ipina a prior smuggling event in June 2019 at the Interstate Highway 35 BP checkpoint. At the time of that offense, authorities discovered a total of 52 aliens hidden inside the tractor-trailer.

On June 30, Gutierrez, 43, Laredo, was sentenced to 57 months in federal prison for his role in the conspiracy.

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

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

HOUSTON – A 42-year-old former Conroe resident is set to appear in federal court on charges of sexual exploitation of children as well as distributing, receiving and possessing child pornography, announced U.S. Attorney Ryan K. Patrick.

Timothy Lee Tyler is scheduled to appear today at 10 a.m. before U.S. Magistrate Judge Frances H. Stacy.

The indictment, returned Jan. 13, alleges that in 2016 Tyler did or attempted to employ, use, persuade, induce, entice and coerce a minor victim to engage in sexually explicit conduct for the purpose of producing a visual depiction of it. On various dates in September 2020, Tyler also allegedly distributed, received and possessed material containing child pornography.

The FBI conducted the investigation with the assistance of Montgomery County Internet Crimes Against Children Task Force which is comprised of several local and federal agencies.

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

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 Southern District of Texas (SDTX) has lost a valued Assistant U.S. Attorney (AUSA) with 40 years of service spanning eight presidential administrations, announced U.S. Attorney Ryan K. Patrick.

Hays Jenkins, 71, Missouri City, passed way over the weekend. He was the most senior attorney in the SDTX and one of only approximately three dozen with similar years of service among U.S. Attorney’s Offices throughout the nation.

Jenkins began his federal career in 1967 with NASA. He later worked as a Harris County Assistant District Attorney before joining the U.S. Attorney’s Office (USAO) in 1980. In Summer 2020, the office celebrated his 40 years of service to the Department of Justice during a celebration via Zoom.

During his tenure, Jenkins had many different assignments throughout the office and was involved in a variety of cases. He also served as the chief of the Civil Division and as senior litigation counsel. Most recently, he was assigned to the Human Rights and Organized Crime Section primarily prosecuting immigration-related offenses. Over the years, Jenkins consistently worked tirelessly and produced outstanding results. 

“Hays will be missed,” said Patrick. “I did not meet a kinder man in the office since I have been here, and he always had a positive thing to say to me.”

Jenkins was a dedicated professional. He could have retired many years prior to his passing, but loved what he did and continued his work to ensure the fulfillment of, and his contribution to, the overall USAO mission.

Jenkins, a long-time Houston-area resident, was a graduate of Grand Prairie High School and University of Houston. He later earned his juris doctor degree from Thurgood Marshall School of Law at Texas Southern University.

SDTX personnel, to include numerous AUSAs and support staff past and present, who have been blessed to know and work with Jenkins over his long career mourn his loss to the community. Patrick and his leadership also send heartfelt condolences to his family and friends.  

CORPUS CHRISTI, Texas – A 28-year-old Corpus Christi man has been ordered to federal prison after he admitted to sending photos depicting the sexual exploitation of children, announced U.S. Attorney Ryan K. Patrick.

Daniel Ellsworth Janssen pleaded guilty Oct. 22, 2020.

Today, U.S. District Judge David S. Morales ordered him to serve a 204-month sentence. At the hearing, the court heard that Janssen had been on probation for attempted indecency with a child when he was arrested for this federal crime.  Following his 17-year federal prison term, Janssen will 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. Again, he has been ordered to register as a sex offender. He must also pay  $3,000 in restitution for each of the three identified victims.

Authorities had linked Janssen to an e-mail and IP address that was accessing child pornography. Law enforcement conducted a search, at which time they seized multiple electronic devices from Janssen’s Corpus Christi residence. A forensic examination later revealed over 1,500 images and videos of child pornography on those devices. Some he had distributed using his cell phone. The majority of the images and videos located on Janssen’s devices depicted the sexual exploitation of children under the age of 10.

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 Corpus Christi Police Department Internet Crimes Against Children Task Force and Immigration and Custom’s Enforcement’s Homeland Security Investigations conducted the investigation.

Assistant U.S. Attorney Sara Popejoy prosecuted the case which was brought as part of Project Safe Childhood (PSC), 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, PSC 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.

CORPUS CHRISTI, Texas – A 28-year-old Odom man has been ordered to federal prison after he admitted to transferring obscene materials to a minor, announced U.S. Attorney Ryan K. Patrick.

Lazaro Benito Rocha pleaded guilty Oct. 22, 2020.

Today, U.S. District Judge David S. Morales found Rocha to be in a position of trust and varied above the guideline range which resulted in a 36-month federal prison sentence. At the hearing, the court heard additional information, including details regarding the sexually explicit communications Rocha had with someone he believed to be a 14-year-old girl living in Corpus Christi. In handing down the sentence, Judge Morales noted Rocha was a teacher when he sent the text messages and photographs and that he took photographs of himself while he was inside his classroom.

At the conclusion of the hearing, the court asked Rocha whether he believed he had a problem with his sexual interests in children. Rocha responded with “I believe so.”

Rocha was further ordered to serve three years on supervised release following his incarceration during which time the court can impose a number of special conditions designed to protect children and prohibit the use of the internet. He will also be ordered to register as a sex offender.

“Today’s sentencing is the result of outstanding collaboration between Homeland Security Investigations (HSI), the Corpus Christi Police Department’s (CCPD) Internet Crimes Against Children Task Force (ICAC) and the Texas Department of Public Safety (DPS),” said Brad Scott, assistant special agent in charge, HSI Corpus Christi. “Working together we were able to identify this child predator and remove him from his position of trust where he had access to minors.”

At part of his plea, Rocha admitted that he had responded to an ad on Craigslist advertising a “good time” with a teenage girl. He continued communicating with whom he thought was a 14-year-old female which soon escalated into conversations of an explicit sexual nature via text messaging.  

Using his cell phone, he eventually sent a photograph of his genitals.

The investigation revealed he was a part-time elementary music teacher at the Incarnate Word Academy in Corpus Christi.

Previously released on bond, Rocha 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.

HIS, CCPD-ICAC and DPS conducted the investigation.

Assistant U.S. Attorney Sara Popejoy 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.  

GALVESTON, Texas - A 51-year-old resident of Angleton has been ordered to federal prison following his convictions of receipt, possession and distribution of child pornography, announced U.S. Attorney Ryan K. Patrick.

Joe Dean Spradlin pleaded guilty March 11, 2020.

Today, U.S. District Judge Jeffrey V. Brown ordered him to serve a total of 155 months in federal prison. Following his prison term, Spradlin will serve 10 years on supervised release, during which time he will have to comply with numerous conditions that restrict his access to children and the internet. He will also be required to register as a sex offender.

In 2017, law enforcement learned of a Dropbox account that contained what was suspected to be child exploitation material. The investigation revealed some of the material in that account depicted nude, minor children exposing their genitals and engaged in sexual activity.

Authorities traced the account to an IP address registered to a residential address in Angleton. Spradlin was living there.

Law enforcement executed a search warrant and seized Spradlin’s HP laptop, which was found to contain thousands of images and thousands of videos of child pornography. Spradlin admitted to acquiring child exploitative material over Tumblr and Kik as well as storing that material on Dropbox. He even paid extra to increase the storage capacity of his account. 

Spradlin’s collection included videos of unusual length. One video was over two hours long.

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

Immigration and Customs Enforcement’s Homeland Security Investigations -Galveston conducted the investigation with the assistance of the Houston Metro Internet Crimes Against Children Task Force and Pearland Police Department.

Assistant U.S. Attorneys Sherri Zack and Stephanie Bauman 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.

McALLEN, Texas – The founders of an Edinburg hospice and related home health agency have paid to resolve allegations they submitted claims to Medicare that resulted from unlawful referrals, announced U.S. Attorney Ryan K. Patrick.

Onder Ari, 49, Edinburg, and Sedat Necipoglu, 48, McAllen, founded Allstate Hospice LLC and Verge Home Care LLC. They and their companies have now paid $1,847,279.36 following an investigation into improper payments to physicians for referrals.

The investigation began in 2016 and revealed Ari and Necipoglu offered compensation to physicians who were responsible for a significant majority of their patient referrals. Specifically, they provided physicians with monthly payments pursuant to medical directorship agreements with Allstate and Verge.  Those payments were in excess of fair market value for the services the physicians actually provided. 

Ari and Necipoglu also sold interests in Allstate to five different physicians which ultimately netted them substantial quarterly dividends. They also provided physicians other gifts and benefits, such as travel and tickets to sporting events. 

The Physician Self‑Referral Law, commonly known as the Stark Law, prohibits specified entities from billing Medicare for certain services referred by physicians with whom the entity has a financial relationship, unless that relationship satisfies one of the law’s statutory or regulatory exceptions. The Anti‑Kickback Statute prohibits offering or paying remuneration to induce the referral of items or services Medicare, Medicaid and other federally-funded programs cover.   Both the Stark Law and the Anti-Kickback Statute are intended to ensure the best interests of the patient and that improper financial incentives do not compromise medical decision-making.

“The FBI is committed, along with its partners, to taking action to eliminate improper relationships and inducements that can corrupt the integrity of physician decision-making and increase health care costs,” said Special Agent in Charge Christopher Combs, FBI San Antonio Division. “Along with criminal prosecution, the FBI will also pursue administrative and civil remedies with the U.S. Attorney’s Office (USAO) and our partner investigative agencies, to prevent, deter and recover government losses sustained by fraud, waste and abuse.”

“Paying physicians to steer patients to one provider over another unacceptably subverts patient choice,” said Special Agent in Charge Miranda Bennett of the Department of Health and Human Services – Office of Inspector General (DHHS-OIG). “We will continue to work with our law enforcement partners to investigate improper payments to physicians to protect patients and the integrity of the programs from unscrupulous acts.”

The FBI and DHHS-OIG conducted the investigation along with the USAO. Assistant U.S. Attorney Brad Gray handled the matter.

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

HOUSTON – A Houston federal grand jury has indicted E. I. du Pont de Nemours and Company Inc. (DuPont) and a former employee for knowingly violating requirements of federal safety regulations and negligently releasing an extremely hazardous substance, U.S. Attorney Ryan Patrick announced today. 

Kenneth Sandel, 49, Friendswood, along with representatives of DuPont are set to appear today before U.S. Magistrate Judge Frances Stacy at 10 a.m.

The indictment stems from the Nov. 15, 2014, incident at the LaPorte plant when 24,000 pounds of methyl mercaptan - a highly toxic, flammable gas - were released. The incident resulted in the deaths of four plant employees and injured others, according to the charges.  

According to the charges, returned Jan. 7, DuPont is headquartered in Wilmington, Delaware, and owns chemical manufacturing plants around the world, including the La Porte facility. Sandel ran the Insecticide Business Unit (IBU) at that location and was responsible for ensuring IBU employees followed applicable federal safety regulations. 

The IBU has since been demolished, but at the time, allegedly produced pesticides called Lannate and Vydate, among other products.  The indictment alleges Lannate and Vydate generated annual net income for DuPont of approximately $123 million during 2014.

The safety regulations are part of the Environmental Protection Agency’s (EPA) Risk Management Plan, created following 1990 amendments to the Clean Air Act. Congress had directed the EPA to create reasonable regulations to prevent the release of certain hazardous chemicals after such events had resulted in the death or injury to many people in the United States and abroad.

The indictment alleges DuPont and Sandel knowingly failed to implement certain DuPont procedures federal regulations required. Specifically, Sandel and DuPont engineers allegedly devised a plan to divert a large volume of methyl mercaptan gas into a waste gas pipe system during the day before and night of the fatal incident. However, Sandel failed to implement necessary procedures to evaluate safety aspects of that plan and to prohibit workers from opening the pipe to the atmosphere, according to the charges.

If convicted of the federal safety regulations violations, Sandel faces up to five years in federal prison while the negligence charge could result in an additional one-year term. Both convictions also carry a potential fine of $250,000. 

The company itself faces potential fines of the greater of $500,000 or twice the gross gain derived from the offense.

The EPA’s Criminal Investigation Division conducted the investigation with assistance from the Texas Environmental Enforcement Task Force. The indictment is part of an EPA initiative titled Reducing Risks of Accidental Releases at Industrial and Chemical Facilities. Assistant U.S. Attorneys John R. Lewis and Belinda Beek and Special Assistant U.S. Attorney Kristina Gonzales 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 41-year-old resident of San Antonio has entered a guilty plea to conspiracy to transport illegal aliens, announced U.S. Attorney Ryan K. Patrick.

On Oct. 20, 2020, Rodrigo Sanchez approached the I-35 Border Patrol checkpoint driving a refrigerated box truck with “JJ Produce” on the side. Soon after, a K-9 alerted to the presence of contraband in the cargo area. Authorities  opened the back of the truck and discovered 37 aliens, including an unaccompanied minor, concealed behind a false wall blocked by stacks of produce.

Sanchez claimed he traveled to Laredo from San Antonio to work as a delivery driver for “AA Produce.” He stated he was to be paid $100 to drive the truck to San Antonio.

U.S. District Judge Marina Garcia Marmolejo will impose sentencing May 5, at which time Sanchez faces up to 10 years in federal prison. He has been and will remain in custody pending that hearing.

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

HOUSTON - The U.S. Attorneys representing the four districts in Texas have announced  intent to prosecute any crimes committed at the state capitol or otherwise in violation of federal law ahead of upcoming presidential inauguration.

“As I’ve said from the beginning, the rioters at the U.S. Capitol should be arrested, charged and incarcerated,” said U.S. Attorney Ryan K. Patrick. “I will continue to work with my D.C. area colleagues proving any assistance for leads that come back to my district. And the four Texas US Attorneys will work together to investigate and prosecute any federal crimes that may occur at the state capitol. We cherish the free expression and ability to assemble, but it must be done peacefully as stated in the Constitution.”

U.S. Attorney Patrick joins his counterparts – U.S. Attorneys Gregg N. Sofer and Stephen J. Cox and Acting U.S. Attorney Prerak Shah of the Western, Eastern and Northern Districts of Texas, respectively – to warn those planning to cross state lines to commit crimes in Texas or at the state capitol.  

As the chief law enforcement officers in each of the federal districts, the U.S. Attorneys will be working with federal, state and local law enforcement throughout the state to aggressively identify crimes that violate federal law. The plan is to ensure that anyone who is arrested for committing looting, violence or any other crime related to protests or similar events on or about inauguration day will be processed and held in federal custody pending further criminal proceedings.

The U.S. Attorney’s Office (USAO) in the District of Columbia (DC) is prosecuting those that have been or will be identified as allegedly committing crimes during the riots at the U.S. Capitol last week. The Texas U.S. Attorneys will also be working with Department of Justice (DOJ) officials and necessary law enforcement in those prosecutions. Any questions regarding those matters should be directed to DOJ Office of Public Affairs or to the USAO in D.C.

A Texas woman has been indicted for transporting a minor from the United States to a foreign country for the purpose of female genital mutilation (FGM).

Zahra Badri, 39, of Houston, who is originally from the United Kingdom, is charged in an indictment with knowingly transporting a minor from the United States in foreign commerce for the purpose of FGM from about July 10, 2016 through Oct. 14, 2016.

“The brutal practice of female genital mutilation not only subjects victims to the immediate trauma of the violent act, but also often condemns them to suffer a lifetime of physical and psychological harms,” said David P. Burns, Acting Assistant Attorney General of the Justice Department’s Criminal Division. “This indictment represents the first time the Department has brought charges against a defendant for transporting a child outside U.S. borders to facilitate this abhorrent form of gender-based violence and demonstrates that we will not rest in pursuing and holding to account those who engage in this cruelty.”

Title 18, United States Code, Section 116(d), defines FGM as circumcision, excision, or infibulation of “the whole or any part of the labia majora or labia minora or clitoris of another person who has not attained the age of 18 years.” Since 1996, the United States has prohibited the practice of female genital mutilation. In 2013, Congress amended the statute to add section 116(d), which prohibits the transportation of a person from the United States to another country for purposes of having female genital mutilation performed upon them. This is the first such indictment under section 116(d).

“Female genital mutilation is child abuse,” said Ryan K. Patrick, U.S. Attorney for the Southern District of Texas. “The long-term damage, both physically and physiologically, is well documented. Unnecessary medical procedures on children will not be tolerated.”

“It is rare this type of crime is brought to the attention of law enforcement,” said Perrye K. Turner, Special Agent in Charge of the FBI’s Houston Field Office. “We want the American people to know it is the FBI's responsibility to investigate allegations of Human Rights violations, like female genital mutilation. This is an example of our commitment to protect Human Rights.”

“Female genital mutilation is a human rights violation,” said Andre Watson, Assistant Director of U.S Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), National Security Investigations Division, which oversees the Human Rights Violators and War Crimes Center. “This indictment reflects the gravity of FGM and the on-going commitment of the Human Rights Violators and War Crimes Center to investigate this heinous crime.”

This case is being investigated by FBI’s Houston Field Office, with the support of the Human Rights Violators and War Crimes Center (HRVWCC). Established in 2009, the HRVWCC furthers the government’s efforts to identify, locate and prosecute human rights abusers in the United States, including those who are known or suspected to have participated in persecution, war crimes, genocide, torture, extrajudicial killings, female genital mutilation and the use or recruitment of child soldiers. The HRVWCC leverages the expertise of a select group of agents, lawyers, intelligence and research specialists, historians and analysts who direct the government’s broader enforcement efforts against these offenders. The HRVWCC is comprised of ICE HSI Human Rights Violators and War Crimes Unit, ICE’s Human Rights Law Division, FBI’s International Human Rights Unit and the Criminal Division’s Human Rights and Special Prosecutions Section (HRSP).

The case is being prosecuted by HRSP Trial Attorneys Rami S. Badawy, Susan Masling, and Christian Levesque and Assistant U.S. Attorneys Kimberly Leo and Sherri Zack of the Southern District of Texas.

The charges contained in the indictment are merely allegations and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

HOUSTON – A federal grand jury has returned the first-ever indictment regarding the specific allegation of circumcision, excision or infibulation of a minor’s labia majora, labia minora or clitoris.

Zahra Badri, 39, a resident of Houston originally from the United Kingdom, is set to appear before a U.S. magistrate judge in the near future. 

“Female genital mutilation is child abuse,” said U.S. Attorney Ryan K. Patrick. “The long term damage, both physically and physiologically, is well documented. Unnecessary medical procedures on children will not be tolerated.”

“The brutal practice of female genital mutilation not only subjects victims to the immediate trauma of the violent act, but also often condemns them to suffer a lifetime of physical and psychological harms,” said Acting Assistant Attorney General David P. Burns of the Justice Department’s Criminal Division. “This indictment represents the first time the Department has brought charges against a defendant for transporting a child outside U.S. borders to facilitate this abhorrent form of gender-based violence and demonstrates that we will not rest in pursuing and holding to account those who engage in this cruelty.”

“It is rare this type of crime is brought to the attention of law enforcement,” said FBI Houston Special Agent in Charge Perrye K. Turner. “We want the American people to know it is the FBI's responsibility to investigate allegations of Human Rights violations, like female genital mutilation. This is an example of our commitment to protect Human Rights.”

The indictment alleges from on or about July 10 through Oct. 14, 2016, Badri knowingly transported a minor from the United States in foreign commerce for the purpose of female genital mutilation.

The FBI’s Houston Field Office conducted the investigation with the support of the Human Rights Violators and War Crimes Center (HRVWCC).

Established in 2009, the HRVWCC furthers the government’s efforts to identify, locate and prosecute human rights abusers in the United States, including those who are known or suspected to have participated in persecution, war crimes, genocide, torture, extrajudicial killings, female genital mutilation and the use or recruitment of child soldiers. The HRVWCC leverages the expertise of a select group of agents, lawyers, intelligence and research specialists, historians and analysts who direct the government’s broader enforcement efforts against these offenders. The HRVWCC is comprised of Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations Human Rights Violators and War Crimes Unit, ICE’s Human Rights Law Section, FBI’s International Human Rights Unit and the Criminal Division’s Human Rights and Special Prosecutions Section (HRSP).

Assistant U.S. Attorneys Kimberly Leo and Sherri Zack of the Southern District of Texas and HRSP Trial Attorneys Rami S. Badawy, Susan Masling and Christian Levesque are jointly prosecuting the case.

The charges contained in the indictment are merely allegations and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

HOUSTON – A 45-year-old Houston man has been sent to prison and ordered to pay nearly $1 million following his convictions on five separate counts of sex trafficking involving adults and minors, announced U.S. Attorney Ryan K. Patrick.

A Houston federal jury deliberated for less than three hours before convicting David Mearis Oct. 18, 2019, following three days of trial.

Today, U.S. District Judge Kenneth Hoyt sentenced Mearis to life in federal prison on each count to run concurrently. He was further ordered to pay $921,680 in restitution to the victims.  

At the hearing, the court heard additional information including excerpts from victim impact statements two of the victims had prepared. “Many days I thought might be my last, being beat as if not human,” said one woman. “I ask that you ensure that no other human has to be subject to the threat of Mr. Mearis. He has created distress and trauma to one too many women and I how we are the last victims of his destructive mind.” Another victim called Mearis the “Devil. I was fearing for my life not knowing how to escape the humiliation that was going on. I have been mentally and physically abused,” she said.  

“David Mearis was a career pimp who abused, controlled, and exploited his victims. He stooped to a new kind of low by taking advantage of one of the girls who had a learning disability and the mental capacity of a child,” said FBI Special Agent in Charge Perrye K. Turner. “Mearis wasn't the caretaker he wanted the court or his prey to believe. He was a dangerous predator who saw his victims not as girls or women, but a money-making commodity."

At trial, the jury heard evidence that spanned from approximately 2007 – 2016. Four victims testified about how they each met Mearis while still teenagers and how he won them over with gifts and kindness before using threats, sexual abuse and physical force to compel them into prostitution.

The jury heard Mearis knew what he was doing and that he lived off the backs of these young women and girls. The government described how Mearis exerted constant control over the female victims. At today’s hearing, the court heard Mearis trafficked one victim for eight years, during which she “endured his reign of terror.”  

One girl began a relationship with Mearis, then 32, when she was 17 after

she had run away from her Oakland, California, home. Another victim was only 15 when she met Mearis, then 34. Both of these girls considered Mearis their boyfriend in the earlier stages of their relationships but were eventually forced to engage in commercial sex in north Houston. One testified that they had to engage in these acts daily and at all times of the day.

Another victim, 14, encountered Mearis, then 41, and eventually ran away to live with him after they met on MocoSpace. She testified he had sexually assaulted her twice while she was with him in 2016.

Testimony revealed Mearis had put at least two of the girls on a peanut butter diet in order to fatten them up for the purpose of working as his prostitute. Evidence also showed text messages between Mearis and several victims demonstrating his constant control over their activities, including during the sex dates themselves. He controlled where they went, what they wore, what they ate and with whom they engaged in commercial sex. The jury saw commercial sex advertisements Mearis created for two of the victims and heard evidence about numerous times Mearis had accessed Backpage, a site formerly used for the purpose of advertising people for sexual activity. He also had bonded one of the victims out of jail at least twice after she was arrested for engaging commercial sex.

Some victims testified Mearis perpetrated acts of violence upon them, from slapping them across the face to being bound and gagged. They reported multiple instances in which they feared physical retaliation if they did not comply with demands, did not do as instructed or perform sexual acts as required. One victim described violence she experienced at the hands of Mearis following her release from jail.

At one point, when the girls were not making enough money, Mearis made one of them participate in a bank robbery. When it did not go exactly as he had planned, he berated her, calling her stupid, among other things.

That victim also described how she had virtually no relationships with anyone outside Mearis’ circle. He had taken her ID, would not let her drive or even use the phone. She was brought to tears multiple times on the stand. In one instance, she described that when her grandfather passed away, Mearis would not let her go unless he went with her. In trying to find the right word to describe the experience, she testified she felt “kidnapped” at the time and called him in court a “threat to young women.” “I felt like I had met the devil,” she said.

When she had eventually made it back to family in California after seeking help from Houston authorities, Mearis contacted her and threatened to call the police about her actions and the bank robbery if she did not return.

Another victim described how Mearis had hog-tied her and that he made her find other women for him. The jury heard Mearis had put a sock in her mouth, a gun to her head and threatened to kill her.       

Evidence and testimony further established Mearis caused Supplemental Security Income benefits, intended for one of the victims, be directed to him. That victim had been diagnosed with mental retardation at an early age. Mearis himself described her as having the “mental capacity of a child” and could not do the simplest of tasks without constant supervision and instruction.                                                                    

The defense implied the victims only implicated Mearis to avoid prosecution for their actions. The defense attempted to portray Mearis as simply a loving boyfriend who provided protection while the girls voluntarily engaged in commercial sex. However, testimony revealed the victims had to turn over the monies they earned for sexual acts directly to Mearis.

The jury did not believe the defense claims and found him guilty as charged.

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

The Houston Police Department, Texas Attorney General’s Office and FBI conducted the investigation with the assistance of the Harris County District Attorney’s Office as part of the Human Trafficking Rescue Alliance (HTRA).

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

Assistant U.S. Attorneys Sherri Zack and Sebastian Edwards prosecuted the case.

HOUSTON – Another alleged associate of one of the most serious transnational organized criminal organizations will make his initial appearance in U.S. federal court today on charges of distributing kilogram quantities of cocaine from Colombia, announced U.S. Attorney Ryan K. Patrick.  

Jose Alfredo Valencia, 43, is set to appear at 2 p.m. in Houston before U.S. Magistrate Judge Dena Henovice Palermo.

A federal grand jury returned an indictment against Alfredo-Valencia and others Aug. 16, 2018. Colombian authorities took him into custody at the request of the United States in November 2018. He was extradited and landed in Houston yesterday.

Valencia is an alleged close associate of Joaquin Guillermo David-Usuga aka Guillermo, 43, who is believed to be a ranking member of the Clan Del Golfo. David-Usuga was extradited to Houston Dec. 5, 2019, and is pending trial. Another Clan Del Golfo associate charged is Jhony Fidel Cuello-Petro aka Mocho, 45, who was extradited to Houston in October 2020. He pleaded guilty to international cocaine distribution in December 2020 and is pending sentencing.

The Department of Justice designated Clan Del Golfo as one of the most serious transnational organized criminal organizations that threatens the United States.

The indictment alleges Valencia, Cuello-Petro, David-Usuga and others were involved in the importation of kilogram quantities of cocaine into the United States. Both are charged with conspiracy to distribute cocaine internationally and one count of international cocaine distribution.

Valencia, Cuello-Petro and David-Usuga were allegedly involved in an ongoing five-year conspiracy to distribute cocaine from Colombia to the United States. In May 2019, they and others participated in distributing approximately 20 kilograms of cocaine in Colombia knowing it was to be imported into the United States, according to the allegations. 

The FBI and Drug Enforcement Administration led the Organized Crime Drug Enforcement Task Force (OCDETF) investigation dubbed “Operation Macondo.”

The 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 that impact Houston and south Texas.

The Justice Department’s Office of International Affairs was responsible for securing the extradition. The Justice Department also extends its gratitude to the government of Colombia and the Colombian police and military for its cooperation and assistance.

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

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

CORPUS CHRISTI, Texas – A 22-year-old Houston man has entered a guilty plea to theft from an interstate cargo shipment, announced U.S. Attorney Ryan K. Patrick.

Maksims Klopovs admitted he was to be paid for picking up a large load of electronics originally set for delivery to a college in Corpus Christi

The investigation revealed that on June 17, 2019, authorities suspected a shipment of approximately $100,000 worth of computers and other electronics might be stolen. They were bound for Del Mar College in Corpus Christi. 

After the shipment left the warehouse in Illinois, someone had changed the delivery instructions using an online system. Rather than deliver it directly to Del Mar College, the shipping company was asked to hold the load at their Corpus Christi warehouse for pickup.

Del Mar College did not request the change.

Klopovs arrived at the warehouse driving a rented U-Haul truck. He presented a fraudulent Texas driver’s license bearing his photo, but with the name Martin Smith. He also showed what was determined to be a fraudulent Del Mar College ID card with the title of Operations Manager also bearing his photograph and with the Smith name. He also had a Del Mar College business card in the name of Martin Smith.

Klopovs claimed the shipment and began to load the electronics into the rental truck. Authorities then took him into custody.

U.S. District Judge Nelva Gonzales Ramos will impose sentence April 6. At that time, Klopovs faces up to 10 years in federal prison and a possible $250,000 maximum fine.

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

Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Robert D. Thorpe Jr. is prosecuting the case.   

A Bangladeshi national formerly residing in Monterrey, Mexico, was sentenced to 46 months in prison followed by three years of supervised release for his role in a scheme to smuggle aliens from Mexico into the United States.

According to the plea agreement, Moktar Hossain admitted that from March 2017 to August 2018, he conspired to bring, and did bring, Bangladeshi nationals to the United States at the Texas border in exchange for payment. Hossain operated out of Monterrey, Mexico, where he maintained a hotel that housed aliens on their way to the United States. Hossain paid drivers to transport the aliens to the U.S. border, and gave the aliens instructions on how to cross the Rio Grande river. 

“The defendant was a key player in an organized smuggling network that operated for profit and preyed on Bangladeshi nationals who wanted to enter the United States illegally,” said Acting Assistant Attorney General David P. Burns of the Justice Department’s Criminal Division. “This sentence serves as a clear deterrent to participants of such transnational criminal organizations who seek to undermine the security of our borders by illegally facilitating the travel of foreigners into the United States for a financial gain.”

“Border security and national security are one in the same,” said U.S. Attorney Ryan K. Patrick for the Southern District of Texas. “We must know who is coming into the country, and we cannot allow unfiltered access. My office continues to work with all our partners executing this mission.” 

“The investigation, prosecution, and sentencing of Hossain is a result of HSI’s expertise in transnational investigations and unique ability to coordinate investigative efforts across international boundaries with foreign counterparts,” said Special Agent in Charge Shane Folden of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) San Antonio. “HSI will continue to work with our law enforcement partners both domestic and international to aggressively dismantle criminal travel networks that pose a threat to U.S. national security.”

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

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

LAREDO, Texas – Two South Texas men have admitted they organized the smuggling of approximately 170 kilograms of marijuana from El Cenizo to Laredo, announced U.S. Attorney Ryan K. Patrick.

Roberto Chavarria, 38, pleaded guilty today, while his brother  - Daniel Chavarria, 35, entered his plea Dec. 1, 2020. The El Cenizo men admitted to conspiring to possess with intent to distribute marijuana.

On May 25, 2017, both helped load large bundles of marijuana into the back of a black pickup truck at Roberto Chavarria’s residence in El Cenizo. The drugs had been previously gathered from the banks of the Rio Grande River. Daniel Chavarria then attempted to escort the drug-laden truck to a stash house in Laredo.

After conducting surveillance, law enforcement attempted to stop the pickup truck for a traffic violation while in route. However, the driver led authorities on a chase and quickly fled the scene. 

Authorities found the abandoned vehicle shortly thereafter in the middle of the road with the lights on and still running. They conducted a search and removed five large bundles of marijuana weighing 169.5 kilograms with an estimated street value of $299,200.

Law enforcement were eventually able to identify and locate the brothers and took them into custody.

U.S. District Judge Diana Saldana will impose sentencing at a date still to be determined. At that time, both men face a minimum of five years in federal prison and a possible $5 million maximum fine.

The Drug Enforcement Administration conducted the investigation with assistance of the Webb County Sheriff’s Office. Assistant U.S. Attorney Michael Makens is prosecuting the case.

McALLEN, Texas – Four Starr County residents have been handed significant sentences following their respective convictions involving the harboring of 104 illegal aliens in harsh conditions, announced U.S. Attorney Ryan K. Patrick.

Juan Carlos Barrera, 28, Odilon Oyervides Jr., 22, Isaac Villarreal, 25, and Gustavo Alberto Alaniz Jr., 25, all of Roma, pleaded guilty in late 2019. 

Today, U.S. District Judge Randy Crane ordered Oyervides to serve 108 months in prison. On Aug. 7, 2019, U.S. District Judge Marina Marmalejo sentenced Oyervides to 18 months in prison for his conviction of being a felon in possession of a firearm. Today’s sentence will run consecutively for a total 126 months in prison.

In December 2020, Barrera and Alaniz received 120-month sentences, while Villarreal was sentenced to 63 months.  All the terms will each be immediately followed by three years of supervised release.

“If it were not for the efforts of the federal, state and local law enforcement agencies who worked on this case these dangerous criminals would have continued harming unsuspecting illegal aliens,” said Rio Grande Valley Sector Chief Patrol Agent Brian Hastings. “Criminal organizations exploit migrants throughout their journey and the abuse does not stop when they arrive in the U.S.”

“These men, who supported alien smuggling and alien harboring, placed their personal profit ahead of public safety and U.S. border security,” said Maria Michel-Manzo, Assistant Special Agent in Charge of Immigration and Customs Enforcement’s Homeland Security Investigations (HSI). “The resulting lengthy prison sentences should act as a warning to others who are involved in this dangerous trade of the severe consequences of their actions.”

During the sentencing hearings, U.S. District Judge Randy Crane noted their  “egregious” conduct and ruled the men had threatening the aliens with stun guns and a firearm, physically mistreated them and failed to provide sufficient food and water. He also held them accountable for maintaining 104 aliens in an open-sided shed without a shower or toilet facilities in the middle of summer and placed the group at risk for serious bodily injury or death. They also had harbored multiple unaccompanied minors.

On Aug. 8, 2019, a man alerted authorities in rural Starr County. He identified himself as an illegal alien who escaped from a nearby ranch because property caretakers were mistreating him. He said others were being held against their will and requested assistance. Law enforcement responded to the location and were eventually able to locate all 104 illegal aliens.

All four men have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

The Rio Grande City Border Patrol’s Field Intelligence Group conducted the investigation with assistance from the Texas Department of Public Safety and the Starr County Sheriff’s Office. Assistant U.S. Attorney Robert L. Guerra Jr. is prosecuting the case.

The Justice Department and the U.S. Attorney’s Office for the Southern District of Texas announced today that they resolved a claim that luxury jeweler Harry Winston Inc. violated the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) by refusing to offer full-time employment to U.S. Army National Guard Reservist John A. Walker because of his military service obligations.

“Discrimination against members of the National Guard or Reserve because of their service to our country is intolerable, violates the Uniformed Services Employment and Reemployment Rights Act, and the Department of Justice will not stand for it,” said Assistant Attorney General Eric S. Dreiband of the Civil Rights Division. “We honor all servicemembers for their service to our nation, and this settlement signals the Justice Department’s ongoing commitment in protecting the rights of our men and women in uniform.”

“Our soldiers, sailors, airmen and marines fight for us. Fighting for their legal rights is the least we can do,” said U.S. Attorney Ryan K. Patrick for the Southern District of Texas. “All service members, including members of the National Guard and Reserve, need to know that employers cannot discriminate against them based on their military service obligations. This settlement sends a strong message to employers that the U.S. Attorney’s Office will protect the rights of our service members.”

In December 2017, reservist Walker applied for a job with Harry Winston, Inc., which denied his application. Walker alleged that Harry Winston, Inc. refused to hire him because of his military service obligations. Under the terms of the settlement, Harry Winston, Inc. has agreed to fully compensate Walker for his back-pay and non-wage damages.

Congress enacted USERRA to encourage non-career service in the uniformed services by reducing employment disadvantages; to minimize the disruption to the lives of persons performing military service, their employers and others by providing for the prompt reemployment of such persons upon their completion of such service; and to prohibit discrimination against persons because of their service in the uniformed services or if they pursue a claim under USERRA.

The U.S. Department of Labor (DOL) referred this matter following an investigation by their Veterans’ Employment and Training Service. The U.S. Attorney’s Office for the Southern District of Texas and the Employment Litigation Section of the Department of Justice’s Civil Rights Division handled the case and work collaboratively with the DOL to protect the jobs and benefits of military members.

This investigation was led by Assistant U.S. Attorneys Keith Edward Wyatt and Annalisa Cravens and Paralegal Specialist Raymond Babauta of the Southern District of Texas, along with Assistant Director Andrew Braniff of the Department of Justice’s Servicemembers and Veterans Initiative and Senior Trial Attorney Alicia Johnson of the Civil Rights Division’s Employment Litigation Section.  

HOUSTON – Luxury Jeweler Harry Winston has paid a U.S. Army reservist to resolve a claim they violated the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) by refusing to offer him full-time employment.

“Discrimination against members of the National Guard or Reserve because of their service to our country is intolerable, violates the Uniformed Services Employment and Reemployment Rights Act, and the Department of Justice will not stand for it,” said Assistant Attorney General Eric S. Dreiband of the Civil Rights Division. “We honor all service members for their service to our nation, and this settlement signals the Justice Department’s ongoing commitment in protecting the rights of our men and women in uniform.”

“Our soldiers, sailors, airmen and marines fight for us. Fighting for their legal rights is the least we can do,” said U.S. Attorney Ryan K. Patrick for the Southern District of Texas (SDTX). “All service members, including members of the National Guard and Reserve, need to know that employers cannot discriminate against them based on their military service obligations. This settlement sends a strong message to employers that the U.S. Attorney’s Office will protect the rights of our service members.”

In December 2017, John Walker applied for a job with Harry Winston Inc. who ultimately denied his application. Walker alleged Harry Winston Inc. refused to hire him because of his military service obligations.

Congress enacted USERRA to encourage non-career service in the uniformed services by reducing employment disadvantages. It also intended to minimize the disruption to the lives of persons performing military service, their employers and others by providing for the prompt reemployment of such persons upon their completion of such service. USERRA also prohibits discrimination against persons because of their service in the uniformed services or if they pursue a claim.

Under the terms of the settlement, Harry Winston Inc. has agreed to fully compensate Walker for his back-pay and non-wage damages.

The Department of Labor - Veterans’ Employment and Training Service conducted the investigation.  

Assistant U.S. Attorneys Keith Edward Wyatt and Annalisa Cravens handled the matter with Assistant Director Andrew Braniff of the Department of Justice’s Service members and Veterans Initiative and Senior Trial Attorney Alicia Johnson of the Civil Rights Division’s Employment Litigation Section. SDTX paralegal specialists Raymond Babauta and Nicole Robbins also provided assistance.

HOUSTON – The former criminal chief of the U.S. Attorney’s Office has been named First Assistant U.S. Attorney (FAUSA), announced U.S. Attorney Ryan K. Patrick.

Jennifer Lowery has been serving the office as criminal chief for the past three years under Patrick’s administration.

“Jennifer has served in influential positions throughout our office and the Department,” said Patrick. “Her experience has prepared her for this new role and I know she will be successful. She knows 2021 will be a very busy and challenging year for the office as operations eventually get back to normal.”

Lowery joined the Southern District of Texas (SDTX) in 2008, but has been with the Department of Justice since 2000. She first served as a Special Assistant U.S. Attorney and then an Assistant U.S. Attorney (AUSA) in the Eastern District of Texas. During this time, she was detailed to Washington D.C. and New York, New York, as a hearing officer for the 9/11 Victims’ Compensation Fund. She later worked in Washington D.C. in the Office of the Deputy Attorney General and Executive Office for US Attorneys in both their Counsel to Director’s Office and General Counsel’s Office.

While with the Southern District of Texas (SDTX), Lowery has served as an AUSA in the Major Offenders, Fraud and Organized Crime Drug Enforcement Task Force (OCDETF) Sections. She has also held the titles of Executive AUSA, deputy criminal chief of the Program Fraud Section, acting deputy criminal chief of the Major Fraud Section, senior litigation counsel and ethics advisor.

Lowery’s advancement comes as former FAUSA Tim Braley exists the office for a position in private practice. Braley served the SDTX for 17 years.

“Tim has been by my side since I was sworn in,” said Patrick. “There is nothing that has been accomplished or done for the benefit of the office without his input and advice. I know Tim will successful in his next chapter and he leaves the office with the gratitude of hundreds of colleagues. While I may be losing a trusted counselor, I am not losing a friend.”

Braley began his career with the SDTX in 2003, spending the majority of his tenure as an AUSA in OCDETF. In 2012, he became the deputy criminal chief of the Narcotics Enforcement/OCDETF Section and named chief of the Criminal Division in 2017. He served as Patrick’s FAUSA since January 2018.

The SDTX has the busiest criminal docket in the country. Prosecuting more cases against more defendants than most other USAOs nationwide, the SDTX represents 43 counties and nearly nine million people and covers 44,000 square miles. More than 200 attorneys and 500 total staff cover seven offices across the district.

McALLEN, Texas – Two local women have been ordered to federal prison following their convictions of conspiring with each other to import approximately 50 kilograms of 99% pure meth from Mexico, announced U.S. Attorney Ryan K. Patrick.

Helen Garza and Herminia Cantu-Garcia, both 43 and of Rio Grande City and  Roma, respectively, pleaded guilty in late February. 

Today, U.S. District Judge Randy Crane imposed a 78-month sentence for both women to be immediately followed by three years of supervised release.

The women planned to import the narcotics Dec. 4, 2019. On that date, Garza drove a car from Mexico and attempted to enter the United States through the Roma Port of Entry. Authorities inspected the vehicle and found hidden compartments within its tires. Upon further examination, they ultimately found multiple bundles containing 50 kilograms of meth with a value of approximately $170,000.

Garza admitted she knew there were drugs in the car.

Further investigation revealed Cantu-Garcia had coordinated the drug trafficking with Garza and other individuals.

“The sentencing  of Garza and Cantu-Garcia sends a clear message regarding the serious consequences for those who engage in criminal activity,” said Special Agent in Charge Shane Folden of Immigration and Customs Enforcement’s Homeland Security Investigations (HSI). “The vast scope of this criminal scheme would have had a devastating effect on the citizens of south Texas. HSI along with our law enforcement partners will continue to seek out and bring justice to those involved in the illicit drug trade.”

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

HSI conducted the investigation with assistance from Border Patrol and Customs and Border Protection. Assistant U.S. Attorney Kristina Pekkala prosecuted the case.

McALLEN, Texas – A 36-year old resident of Edinburg has pleaded guilty to bulk cash smuggling, announced U.S. Attorney Ryan K. Patrick.

Sergio Guadalupe Sauceda-Saenz is a legal permanent resident (LPR) who was residing in Edinburg. On April 4, he attempted to leave the United States through the Hidalgo Port of entry in his vehicle. Authorities conducted an outbound inspection which led to the discovery of $571,497 in bulk U.S. currency in the spare tire.

Today, he admitted to evading currency reporting requirement by knowingly concealing more than $10,000 dollars. Sauceda-Saenz acknowledged knowing he was concealing the money and that it was illegal to transport the currency from the U.S. to Mexico unreported. As part of the plea agreement, he has agreed to forfeit his interest in the seized cash.

U.S. District Judge Ricardo H. Hinojosa accepted the plea and set sentencing for Feb. 10, 2021. At that time Sauceda-Saenz faces up to five years in federal prison along with a possible $250,000 maximum fine. He could also lose his status as an LPR.

Sauceda-Saenz will remain in custody pending sentencing.

It is not a crime to carry more than $10,000, but it is a federal offense not to declare currency or monetary instruments totaling $10,000 or more to law enforcement upon entry or exit from the U.S. or to conceal it with intent to evade reporting requirements.

Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation along with Customs and Border Protection. Assistant U.S. Attorney Frances Blake Land is prosecuting the case.

LAREDO, Texas – A 30-year-old woman from Bradenton, Florida, has been ordered to federal prison following her conviction of importing 15.62 kilograms of crystal meth, announced U.S. Attorney Ryan K. Patrick.

A Laredo jury deliberated for five hours following a two-day trial before convicting Mayra Aguirre on May 1, 2018.

Today, U.S. District Judge Diana Saldana handed Aguirre a 24-month sentence to be immediately followed by five years of supervised release. In handing down the sentence, the court noted Aguirre had accepted responsibility and demonstrated sincere remorse for her actions.

On Oct. 9, 2017, Aguirre attempted to enter the United States via the Lincoln-Juarez Bridge driving her recently-purchased silver 2012 Dodge Durango. Her sister and young toddler were with her. Officers became suspicious after she gave inconsistent replies to standard questions and could not provide proof of vehicle registration.

She was referred to secondary inspection, at which time officers detected a powerful chemical odor emanating from the interior of the vehicle. The odor did not dissipate and initially made some officers nauseous. An inspection revealed obvious signs of mechanical tampering with the discovery of non-factory bolts, glue and unusual welding under the carpeting. A subsequent search revealed 15.62 kilograms of meth stored within 29 plastic bags hidden inside a false “trap door” panel manually attached to the inside of vehicle.

At trial, the jury also heard that the drugs have an estimated value of up to $500,000 in Florida.

The defense attempted to convince the jury the meth was placed in Aguirre’s  vehicle by unknown persons when it was stolen in Mexico a month prior to her arrest. They did not believe her claims and found her guilty as charged.

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

Immigration and Customs Enforcement’s Homeland Security Investigations and Customs and Border Protection conducted the investigation. Assistant U.S. Attorney (AUSA) Francisco J. Rodriguez and former AUSAs Christopher Dos Santos and Michael Eaton prosecuted the case.

McALLEN, Texas – A 50-year-old woman from San Antonio has been ordered to federal prison following her conviction for attempting to import approximately 18 kilograms of meth, announced U.S. Attorney Ryan Patrick.

Kandy Elizabeth Martinez pleaded guilty Dec. 6, 2019.

Today, U.S. District Judge Randy Crane ordered Martinez to serve a 42-month sentence to be immediately followed by three years of supervised of release.

On Sept. 30, 2019, Martinez attempted to gain entry into the United States via the Donna port of entry. During inspection, authorities conducted an X-ray examination which showed anomalies in the rear passenger quarter panel and spare tire located in the cargo area. Law enforcement ultimately found 18 bundles of meth weighing approximately 18 kilograms.

Martinez admitted she knowingly imported the drugs into the United States from Mexico with the intent to deliver them to San Antonio. She expected to be paid $3,000.

The drugs had an approximate street value of $72,000.

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. Attorney M. Alexis Garcia prosecuted the case.

HOUSTON – Apnix Sleep Diagnostics LP has paid the United States $154,824 to resolve claims that it improperly billed the Medicare program for sleep studies, announced U.S. Attorney Ryan K. Patrick. 

A proactive review of claims data demonstrated that Apnix was the one of the area’s highest paid sleep labs. In addition, the investigation revealed there had been several complaints regarding Apnix’s failure to adhere to Medicare regulations.

Medicare rules and regulations require that properly-trained and certified sleep technicians administer sleep studies. However, from Jan. 1, 2015, through July 15, 2019, Apnix improperly billed and received payment for sleep studies when they did not have the properly-trained and certified personnel present.

Apnix allegedly violated the False Claims Act by knowingly submitting, or causing to be submitted, false claims to Medicare for payment for sleep studies performed by these non-certified technicians.

The U.S. Attorney’s Office and Department of Health and Human Services - Office of Inspector General conducted the investigation. Assistant U.S. Attorney Melissa Green handled the matter.

The settlement resolved the government’s allegations without a determination of liability.

CORPUS CHRISTI, Texas – Two local man have admitted they falsified testing records of aircraft parts intended to be installed on Black Hawk helicopters, announced U.S. Attorney Ryan K. Patrick.

Samuel Escareno, 56, Robstown, entered his plea today, while Albert Flores, 59, Corpus Christi, pleaded guilty Oct. 29.

Flores and Escareno are both former supervisors at the Corpus Christi Army Depot (CCAD). At their respective pleas, they admitted they aided, abetted, counseled, commanded and induced others to make false entries and certifications related to UH-60 Black Hawk helicopter main rotor blade dynamic balance data sheets. As a result, nonconforming rotor blades appeared to meet specifications. 

CCAD employees altered test sheets to make nonconforming blades appear to operate within specifications rather than return the blades to the shop for alteration or remanufacture. Because of the scheme, a total of 262 main rotor blades that failed to operate within specifications were shipped to Department of Defense installations worldwide between Jan. 7, 2012, and Oct. 7, 2014. These were to be installed on UH-60 Black Hawk helicopters. 

Flores served as the CCAD Blade Division’s supervisor. Escareno was the team leader during this period. Following the discovery of the scheme, both were terminated.

CCAD employees that worked under Flores said he told them to  manipulate dynamic balance data sheets. The operators understood that if testing revealed a blade did not meet specifications for "slope” or “load," they were expected to manipulate the testing data sheet rather than send the blade back to the shop for alterations. Some operators reported that Flores occasionally altered testing data sheets himself and then gave them back for their signature and certification.

While serving as team leader, Escareno personally altered at least 30 testing data sheets and falsely certified the blades as operating within specifications. When the shop was busy, operators would give Escareno the data sheets for failing blades who would then alter them indicating passing. Escareno then gave the altered sheet back to the operators to certify. 

"Today's plea agreement is further evidence of the unwavering commitment between the US Army Criminal Investigations Division and the U.S. Attorney's Office to seek accountability and justice for anyone whose actions may result in harm to our Nation's most precious resource, the United States Warfighter," said Special Agent in Charge Ray A. Rayos of US Army CID - Major Procurement Fraud Unit (MPFU).

U.S. District Judge Nelva Gonzales will sentence Flores on Jan. 27, 2021, while Escareno is set for March 17, 2021. Both men face a sentence of up to 10 years in federal prison and a possible $250,000 maximum fine.

U.S. Army CID-MPFU conducted the investigation. Assistant U.S. Attorney Robert D. Thorpe Jr. is prosecuting the case.

McALLEN, Texas — Two men have been ordered to federal prison following their conviction of transporting aliens that resulted in death, announced U.S. Attorney Ryan K. Patrick.

David Lee Davila, 29, Penitas, and Nathan Lee Tamez, 30, Donna, pleaded guilty Oct. 31, 2019, to one count of conspiracy to transport aliens resulting in the death of a person. Tamez also admitted to being a felon in possession of a firearm.

Today, U.S. District Judge Randy Crane sentenced Davila to 188 months in federal prison, while Tamez received a 151-month term of imprisonment.

In May 2019, Davila was involved in an unrelated incident in which a shooting occurred in connection with transporting aliens. Davila knew the danger the job entailed, still hired Tamez and a woman in June 2019 to transport aliens to another smuggler on his behalf.

When they arrived at the meeting location along with Davila, there was an altercation with the other party which led to gunfire. Everyone fled the scene which led to two vehicles chasing and striking each other. Ultimately, the woman Davila hired lost control of the vehicle and crashed into a residence in Alamo. Both she and Tamez were shot multiple times. The woman later succumbed to her injuries and subsequently died.

Davila and Tamez have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility designated in the near future.

Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of Alamo Police Department. Assistant U.S. Attorney Sarina S. DiPiazza prosecuted the case.

BROWNSVILLE, Texas - A corporate executive has been ordered to prison after his conviction related to falsely telling thousands of patients with long-term incurable diseases, such as Alzheimers and dementia, they had less than six months to live and subsequently enrolling them in hospice programs.  

A federal jury in McAllen convicted Rodney Mesquias, 48, San Antonio. The one-month trial in November 2019 was one of the first criminal hospice fraud prosecutions the Department of Justice has presented to a federal jury.   

Today, U.S. District Court Judge Rolando Olvera ordered Mesquias to serve a total of 240 months in federal prison and to pay $120 million in restitution.

“Financial healthcare fraud is abhorrent enough, but to fraudulently diagnose patients with dementia or Alzheimer’s is the pinnacle of medical cruelness to both the patient and their family,” said U.S. Attorney Ryan K. Patrick of the Southern District of Texas. “They falsely gave patients life ending diagnosis and they will pay the price with years behinds bars.”

“Mesquias funded his lavish lifestyle by exploiting patients with long-term, incurable diseases by enrolling them in expensive but unnecessary hospice services,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “This significant sentence represents the department’s continued commitment to pursue those who orchestrate and commit healthcare fraud schemes.”

Mesquias and his co-conspirator Henry McInnis, 48, were both convicted of one count each of conspiracy to commit health care fraud, conspiracy to commit money laundering and conspiracy to obstruct justice as well as six counts of health care fraud. Mesquias was separately convicted on one count of conspiracy to pay and receive kickbacks. 

From 2009 to 2018, Mesquias and McInnis engaged in a scheme that involved $150 million in false and fraudulent claims for hospice and other health care services. Mesquias owned and controlled the Merida Group, a large health care company that operated dozens of locations throughout Texas. McInnis was Merida Group’s CEO. 

“Families seek to give comfort and support to their ailing loved ones when all other medical options are gone,” said Special Agent in Charge Christopher Combs, FBI San Antonio Division. “It is unconscionable and evil to prey upon the most vulnerable in our community to commit fraud against government-funded programs. The FBI is committed to protecting our communities from those who may not have the strength to protect themselves.”

“Mesquias’ scheme included paying kickbacks to physicians and fraudulently enrolling vulnerable beneficiaries in hospice care that prevented them from accessing curative care -- all done to steal millions of dollars from Medicare to fund lavish personal spending,” said Special Agent in Charge Miranda L. Bennett, Department of Health and Human Services Office of Inspector General’s (DHHS-OIG) Dallas Region. “This victimization is intolerable, and our investigators and law enforcement partners will continue to work hard to bring such criminals to justice and to protect those relying on federal health care programs.”

According to evidence presented at trial, the Merida Group, Mesquias and McInnis adopted a strategy to market their hospice programs as providing medical benefits “you don’t have to die to use.” They also aggressively enrolled patients with long-term incurable diseases, such as Alzheimers and dementia, and limited mental capacity who lived at group homes, nursing homes and in housing projects.

In some instances, Merida Group marketers falsely told patients they had less than six months to live and sent chaplains to lie to the patients. They also discussed last rites and preparation for their imminent death.

Hospice services require patients to be suffering from a terminal illness expected to result in death within six months. Not only were patients not in such circumstances, they were walking, driving, working and even coaching athletic sporting events in some instances. However, Mesquias, McInnis and others kept patients on services for multiple years in order to increase revenue.

Placing patients on such palliative hospice care meant they were unable to obtain medical coverage for curative medical services. 

Mesquias also fired employees who refused to go along with the fraud. He often  directed them not to “[expletive] with his patients or [expletive] with his money” by discharging patients from services. One co-conspirator said with respect to hospice patients “the way you make money is by keeping them alive as long as possible.” This included engaging in surgical and other medical interventions that were designed to extend life through the use of medical technologies, according to trial testimony.

The evidence further established Mesquias and McInnis obstructed justice by causing the creation of false and fictitious medical records. Further, they produced them to a federal grand jury in order to attempt to avoid indictment.  The records added false diagnostic information, making it appear that patients were dying when, in fact, they were not.

Mesquias and McInnis also were convicted in connection with laundering the proceeds of the fraud. The jury found they used monies to purchase expensive vehicles such as a Porsche, expensive jewelry, luxury clothing from high-end retailers such as Louis Vuitton, exclusive real estate, season tickets for premium sporting events and a security detail and bottle service at high-end Las Vegas nightclubs. Mesquias and McInnis also treated physicians to lavish parties at these elite nightclubs, providing them with tens of thousands of dollars in alcohol and other perks in exchange for medically unnecessary patient referrals.

McInnis will be sentenced at a later date. Two other co-conspirators have pleaded guilty and are awaiting sentencing.

DHHS-OIG, FBI and Texas Health and Human Services Commission conducted the investigation. Assistant U.S. Attorney Andrew Swartz of the Southern District of Texas and  Assistant Chief Jacob Foster and Trial Attorney Kevin Lowell of the Criminal Division’s Fraud Section re 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, DHHS Centers for Medicare & Medicaid Services, working in conjunction with the DHHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

A corporate executive has been ordered to serve 20 years in prison after his conviction related to falsely telling thousands of patients with long-term incurable diseases, such as Alzheimers and dementia, they had less than six months to live and subsequently enrolling them in hospice programs.   

A federal jury in McAllen, Texas, convicted Rodney Mesquias, 48, of San Antonio, Texas. The one-month trial in November 2019 was one of the first criminal hospice fraud prosecutions the Department of Justice has presented to a federal jury.    

Today, U.S. District Court Judge Rolanda Olvera ordered Mesquias to serve a total of 240 months in federal prison and to pay $120 million in restitution.

“Mesquias funded his lavish lifestyle by exploiting patients with long-term, incurable diseases by enrolling them in expensive but unnecessary hospice services,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division.  “This significant sentence represents the department’s continued commitment to pursue those who orchestrate and commit healthcare fraud schemes.”

“Financial healthcare fraud is abhorrent enough, but to fraudulently diagnose patients with dementia or Alzheimer’s is the pinnacle of medical cruelness to both the patient and their family,” said U.S. Attorney Ryan K. Patrick of the Southern District of Texas. “They falsely gave patients life ending diagnosis and they will pay the price with years behinds bars.”

“Families seek to give comfort and support to their ailing loved ones when all other medical options are gone,” said Special Agent in Charge Christopher Combs of the FBI’s San Antonio Division. “It is unconscionable and evil to prey upon the most vulnerable in our community to commit fraud against government-funded programs. The FBI is committed to protecting our communities from those who may not have the strength to protect themselves.”

“Mesquias’ scheme included paying kickbacks to physicians and fraudulently enrolling vulnerable beneficiaries in hospice care that prevented them from accessing curative care – all done to steal millions of dollars from Medicare to fund lavish personal spending,” said Special Agent in Charge Miranda L. Bennett of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Region. “This victimization is intolerable, and our investigators and law enforcement partners will continue to work hard to bring such criminals to justice and to protect those relying on federal health care programs.”

Mesquias and his co-conspirator Henry McInnis, 48, were both convicted of one count each of conspiracy to commit health care fraud, conspiracy to commit money laundering and conspiracy to obstruct justice as well as six counts of health care fraud. Mesquias was separately convicted on one count of conspiracy to pay and receive kickbacks. 

From 2009 to 2018, Mesquias orchestrated a scheme that involved $150 million in false and fraudulent claims for hospice and other health care services. Mesquias owned and controlled the Merida Group, a large health care company that operated dozens of locations throughout Texas.

According to evidence presented at trial, Mesquias and the Merida Group adopted a strategy to market their hospice programs as providing medical benefits “you don’t have to die to use.” They also aggressively enrolled patients with long-term incurable diseases, such as Alzheimers and dementia, and limited mental capacity who lived at group homes, nursing homes and in housing projects.

In some instances, Merida Group marketers falsely told patients they had less than six months to live and sent chaplains to lie to the patients. They also discussed last rites and preparation for their imminent death.

Hospice services require patients to be suffering from a terminal illness expected to result in death within six months. Not only were patients not in such circumstances, they were walking, driving, working and even coaching athletic sporting events in some instances. However, Mesquias and others kept patients on services for multiple years in order to increase revenue.

Placing patients on such palliative hospice care meant they were unable to obtain medical coverage for curative medical services. 

Mesquias also fired employees who refused to go along with the fraud. He often  directed them not to “[expletive] with his patients or [expletive] with his money” by discharging patients from services. One co-conspirator said with respect to hospice patients “the way you make money is by keeping them alive as long as possible.” This included engaging in surgical and other medical interventions that were designed to extend life through the use of medical technologies, according to trial testimony.

The evidence further established Mesquias obstructed justice by causing the creation of false and fictitious medical records. Further, Mesquias produced them to a federal grand jury in order to attempt to avoid indictment. The records added false diagnostic information, making it appear that patients were dying when, in fact, they were not.

Mesquias also was convicted in connection with laundering the proceeds of the fraud. The jury found they used monies to purchase expensive vehicles such as a Porsche, expensive jewelry, luxury clothing from high-end retailers such as Louis Vuitton, exclusive real estate, season tickets for premium sporting events and a security detail and bottle service at high-end Las Vegas nightclubs. Mesquias also treated physicians to lavish parties at these elite nightclubs, providing them with tens of thousands of dollars in alcohol and other perks in exchange for medically unnecessary patient referrals.

McInnis will be sentenced at a later date. Two other co-conspirators have pleaded guilty and are awaiting sentencing.

The Department of Health and Human Service – Office of Inspector General (DHHS-OIG); FBI and Texas Health and Human Services Commission conducted the investigation. Assistant Chief Jacob Foster and Trial Attorney Kevin Lowell of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Andrew Swartz 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, DHHS Centers for Medicare & Medicaid Services, working in conjunction with the DHHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

CORPUS CHRISTI, Texas – The third and final family member convicted in a large-scale alien smuggling operation has been ordered to federal prison, announced U.S. Attorney Ryan K. Patrick.

Mexican citizen Ricardo Salazar-Mendoza, 39, pleaded guilty Nov. 12, 2019.

Today U.S. District Judge David S. Morales sentenced to him to 84 months in federal prison. Not a U.S. citizen, he is expected to face removal proceedings following the sentence. At the hearing, the court noted the number of aliens involved in this conspiracy and that Salazar-Mendoza brandished a firearm and involuntarily detained an alien.

Between March 2019 and August 2019, Salazar-Mendoza and his two brothers - Juan Carlos Salazar Mendoza, 38, and Alejandro Salazar-Mendoza, 43 - operated an alien smuggling organization.

Juan Carlos received aliens who had crossed the border illegally, housed them and hired drivers to get them past the checkpoint. The aliens were hidden in dangerous places such as in motorhomes or secret compartments under vehicles.

Ricardo operated at least one stash house for the organization in which aliens were housed while the brothers awaited smuggling fees and made smuggling arrangements to get the aliens through the checkpoint. During the conspiracy, Ricardo brandished a firearm and involuntarily detained at least one alien.

In total, law enforcement discovered at least 64 aliens from various countries at the Sarita Border Patrol Checkpoint. At least one was an unaccompanied minor.

Alejandro and Juan Carlos were previously sentenced to 80 and 108 months, respectively.  

They all have been and remain in custody.

Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation in conjunction with Customs and Border Protection. Assistant U.S. Attorney Joel Dunn prosecuted the case.

HOUSTON – Authorities have arrested a 22-year-old Huntsville man for possessing and receiving child pornography as well as cyberstalking, announced U.S. Attorney Ryan K. Patrick. 

Kody Nicholas Bohac is set to make his initial appearance before U.S. Magistrate Judge Frances Stacy Dec. 16 at 10 a.m.  

The criminal complaint, filed yesterday under seal, alleges Bohac was involved in stalking a woman in another state over social media and threatening to post nude photographs of her on the internet if she did not contact him. The charges allege the images were posted on the internet after the woman did not respond to his threats.

According to the criminal complaint, law enforcement had executed a search warrant in connection with a related matter. At that time, they allegedly found images and videos of child pornography on his cell phone.

If convicted, Bohac faces up to 20 and five years in federal prison on the possession and receipt of child pornography charges, respectively. Federal cyberstalking carries a potential five-year prison sentence.

The FBI Houston Division - Bryan Resident Agency and FBI Philadelphia Division - State College Resident Agency conducted the investigation with the assistance of the Sam Houston State University Police Department.

Assistant U.S. Attorney Richard W. Bennett is prosecuting this case, which was brought as part of Project Safe Childhood (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.

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