Southern District of Texas

HOUSTON - Two home health agency owners are set to appear in federal court on charges they fraudulently billed more than $10 million to Medicare, announced U.S. Attorney Ryan K. Patrick.

Authorities arrested Tataw Charlz Bisong and Angela Bisong, both 57 and from Stafford, today. They are expected to make their initial appearances before U.S. Magistrate Judge Frances H. Stacy at 2 p.m.  

A federal grand jury in Houston returned the indictment under seal Dec. 9, which was unsealed today. It alleges the Bisongs co-owned SierCam Healthcare Services LLC. From 2012 through 2020, SierCam allegedly billed Medicare for home health services that were not medically necessary and often not provided as billed to Medicare. The charges allege the Bisongs paid SierCam patients to sign up for medically unnecessary home health services and provided free transportation and covered the copayments and other fees at doctor’s office visits to facilitate their health care fraud scheme. Additionally, the Bisongs created phony medical records to make it appear the services met Medicare’s criteria for reimbursement, according to the indictment.

Charlz and Angela Bisong are both charged with one count of conspiracy to commit health care fraud, six counts of health care fraud and one count of conspiracy to pay and receive health care kickbacks.   

Conspiracy to commit health care fraud and each of the six counts of health care fraud carry a maximum sentence of 10 years in federal prison and a maximum $250,000 possible fine, upon conviction. If convicted of conspiracy to pay and receive health care kickbacks, they also face up to five years in federal prison and a possible $25,000 maximum fine.

The FBI, Department of Health and Human Services‐Office of Inspector General and Texas Attorney General’s Medicaid Fraud Control Unit conducted the investigation. The Stafford and Sugar Land Police Departments assisted in the arrests. Special Assistant U.S. Attorney Kathryn Olson 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 federal grand jury has returned an indictment against a 40-year-old Laredo woman for attempting to smuggle goods from the United States, announced U.S. Attorney Ryan K. Patrick.

According to the complaint originally filed in the case, Zaira Coronel attempted to pass through the Lincoln-Juarez Port of Entry in Laredo on Nov. 18. However, authorities conducted a search and allegedly discovered five boxes of ammunition on the floor of her vehicle.

The boxes contained 5,000 rounds of 7.62x39 millimeter ammunition, according to the charges.

If convicted of attempting to smuggle goods from the United States, Coronel faces up to 10 years in federal prison and a maximum fine of up to $250,000.

Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of Customs and Border Protection. Assistant U.S. Attorney April Ayers-Perez 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 federal grand jury has returned an indictment against a 40-year-old Houston man on charges of conspiracy to transport 138 undocumented aliens, announced U.S. Attorney Ryan K. Patrick.

Joseph Earl Stovall is expected to appear for this arraignment before a U.S magistrate judge in Laredo in the near future.

The charges allege Stovall approached the Border Patrol Checkpoint in Freer driving a tractor trailer on Dec. 4. He was referred to secondary inspection, at which time authorities allegedly discovered a total of 138 individuals, including seven juveniles inside the trailer. All were from various countries including Mexico, Guatemala, El Salvador, Dominican Republic, Honduras, Nicaragua and Ecuador.

Law enforcement allegedly had to break the seal on the doors in order to open the trailer.

The complaint alleges Stovall was hired to drive the vehicle from Laredo to San Antonio via U.S. Highway 59.

If convicted, Stovall faces up to 10 years in prison as well as a possible $250,000 maximum fine.

Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with assistance from Border Patrol. Assistance U.S. Attorney Yoona Lim 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.

BROWNSVILLE, Texas – A Brownsville federal grand jury has indicted a Canadian woman for prohibitions with respect to biological weapons and making threats via interstate commerce, announced U.S. Attorney Ryan K. Patrick along with Special Agent in Charge Christopher Combs of the FBI.

Pascale Cecile Veronique Ferrier aka Jane Ferrier, 53, is currently in custody in Washington, D.C., on separate, but similar charges. She is expected to make her initial appearance in Brownsville at a future date.

The grand jury returned the indictment yesterday charging Ferrier with eight counts each of prohibitions with respect to biological weapons and making threats via interstate commerce.

Between Sept. 14-21, Ferrier allegedly sent envelopes containing letters and a powdery substance to multiple local agencies. These included the El Valle Detention Facility, Hidalgo County Adult Detention Center, Brooks County Detention Center, Hidalgo County Sheriff’s Office, Brooks County Sheriff’s Office and Mission Police Department, according to the charges.

The substance sent is alleged to be Ricin.

If convicted, Ferrier faces up to life for the biological weapons charges, while threats via interstate commerce carries a potential five-year sentence. Both convictions also carry a maximum $250,000 possible fine.

The FBI conducted the investigation with the assistance of Immigration and Customs Enforcement’s – Office of Professional Responsibility; U.S. Postal Inspection Service; Bureau of Alcohol, Tobacco, Firearms and Explosives; police departments in Raymondville, Pharr and Mission; El Valle Detention Facility;

Fire departments in Harlingen and Brooks County; Hidalgo County Sheriff’s Office; Brooks County Detention Center; and Texas Department of State Health Services. Assistant U.S. Attorneys David A. Coronado, David A. Lindenmuth and Alamdar Hamdani are prosecuting the case.  

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

HOUSTON – A federal grand jury in Houston has returned a criminal indictment against eight individuals, while a related civil complaint has charged 14 individuals and one company relating to international trade fraud violations stemming from a decade-long scheme involving tires from China.  

Law enforcement arrested Zheng “Miranda” Zhou, 53, of Missouri City, and Kun “Bruce” Liu, 40, of Sugar Land, yesterday. They made their initial appearances in Houston federal court today, at which time the criminal indictment was unsealed. Zhou will appear again tomorrow at 10 a.m. before U.S. Magistrate Judge Frances Stacy for a counsel determination hearing, and both are set for arraignment Friday at 10 a.m.

Also charged in the indictment are Qinghua “Shirley” Song, 44, of Jurupa Valley, California; and Chinese residents Yue “Joanna” Peng, 42, Li “Cathy” Chen, 38, Xin “Devin” Zhang, age unknown, Shaohui “Jasper” Jia, 40, and Deng “David” Yongqiang, 36. They are all considered fugitives and warrants remain outstanding for their arrests.

The Department of Justice’s Civil Division also filed a civil complaint Dec. 11 alleging trade fraud in the U.S. Court of International Trade. The complaint names the eight criminal defendants and six other individuals - Xiaozhen “Jenny” Zhang, 34, Di “Terry” Wang, 34, Liang “Leon” Yu, 49, Lin “Leo” Zhang, 37, Jinbing “David” Wang, 36, and Minglian “Bill” Li, 28 - as well as Houston area company Winland International Inc., dba Super Tire Inc. David Wang is a resident of New Jersey, while the remaining civil defendants reside in China.

“China and its industries want to rob, replicate and replace American made good and technology,” said U.S. Attorney Ryan K. Patrick. “Illegally importing and dumping these goods is one way to systemically weaken American competitors. Whether direct espionage by the Chinese government or trade fraud like in this case, we will continue to investigate and prosecute every case we can.”

“The Civil Division, through the Department of Justice’s Trade Fraud Task Force (TFTF), will continue to partner with U.S. law enforcement agencies and U.S. Attorneys’ Offices to aggressively investigate and pursue individuals and companies who attempt to evade U.S. customs laws and target the U.S. manufacturing base with unfair trade practices,” said Acting Assistant Attorney General Jeffery Bossert Clark. “We recognize the importance of ensuring that U.S. manufacturers are competing on a level playing field.” 

The indictment and complaint allege the defendants conspired to avoid anti-dumping duties associated with off-the-road (OTR) and light vehicle and truck (LVT) tires from China. Working through and with Winland, individuals allegedly imported OTR and LVT tires from companies that were subject to anti-dumping duties associated with Chinese tire manufacturers who had engaged in unfair trade practices in the United States. 

The complaint further alleges U.S.-based defendants conspired with defendants in China to obtain falsified invoices and entry records of Chinese tire companies that were subject to a lower duty rate than the actual manufacturers of these tires. Defendants submitted these falsified records to U.S. Customs officials when importing tires into the United States, so that Winland could avoid paying the higher duty rates, according to the allegations. The indictment and complaint also allege they used these falsified records to understate the value of these tires, further lowering the amount Winland owed in duties.

The value of these tires allegedly exceeded $20.9 million and resulted in the deprivation to the United States of more than $6.5 million in import duties.

“For more than a decade, Zhou and her co-conspirators are alleged to have sought to gain an unfair competitive advantage at the expense of U.S. companies and consumers through a series of schemes in violation of fair trade practices and U.S. import regulations,” said Special Agent in Charge Mark B. Dawson of Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) - Houston. “Working closely with our U.S. and foreign law enforcement partners, and in coordination with the National Intellectual Property Rights Coordination Center, we were able to uncover these alleged deceptive practices leading to the criminal indictment and imposition of almost $21 million in civil penalties.”

“Customs and Border Protection (CBP) takes its trade mission of protecting the U.S. economy very seriously as we strive to maintain fair trade and preserve American jobs from predatory practices,” said Director of Detroit Field Operations Christopher Perry. “These civil penalties and criminal indictments should serve as a warning to those who attempt to defraud our government and do harm to our economy and American businesses.”

The Houston Trade/Revenue Interdiction and Enforcement Team conducted the collaborative investigation along with CBP’s Automotive and Aerospace Center of Excellence and Expertise with the assistance of U.S. Citizenship and Immigration Services.

Assistant U.S. Attorneys Suzanne Emilady and Craig Feazel of the Southern District of Texas are prosecuting the criminal case, while William Kanellis of TFTF is handling the civil matter. TFTF is an inter-agency law enforcement task force with the primary mission of identifying, interdicting and prosecuting international trade fraud. 

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

BROWNSVILLE, Texas – A 21-year-old resident of Houston has been ordered to prison following his conviction for attempting to import approximately 60.88 kilograms of meth, announced U.S. Attorney Ryan K. Patrick.

Hector Julian Valerio-Andrade pleaded guilty Dec. 3, 2019.

Today, U.S. District Judge Fernando Rodriguez handed Valerio a 140-month sentence to be immediately followed by five years of supervised release. At the hearing, the court noted Valerio had stated he was trafficking drugs in order to receive a $6,500 payment and that he had planned the offense for several weeks before he finally made the attempt.

On Oct. 6, 2019, Valerio entered the United States through the Brownsville and Matamoros (B&M) port of entry as the driver and sole occupant of a 2008 Ford Explorer. Authorities soon discovered approximately 60.88 kilograms of meth inside the vehicle’s tires.

Valerio admitted he knowingly imported the drugs into the United States from Mexico with the intent to deliver them to Dallas. He expected to be paid $6,500.

The drugs had an estimated street value of $1.32 million.

Valerio 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 and Customs and Border Protection conducted the investigation. Assistant U.S. Attorney Brian McDonald prosecuted the case.

A Houston-area pain clinic owner and a clinic employee who posed as a physician were sentenced to 240 months and 96 months in prison, respectively, today for their roles at a “pill mill” where they and their co-conspirator illegally prescribed hundreds of thousands of doses of opioids and other controlled substances.

Acting Assistant Attorney General Brian C. Rabbit of the Justice Department’s Criminal Division, U.S. Attorney Ryan K. Patrick of the Southern District of Texas and Special Agent in Charge Steven S. Whipple of the Drug Enforcement Administration’s (DEA) Houston Division made the announcement.

Baker Niazi, 49, of Sugarland, Texas, and Muhammad Arif, 62, of Katy, Texas, were sentenced by U.S. District Judge Alfred H. Bennett of the Southern District of Texas. Judge Bennett ordered that Niazi pay a fine of $500,000, and also ordered that Niazi forfeit $493,000 and that Arif forfeit $11,423.11.  Niazi pleaded guilty in April 2018 to one count of conspiracy to unlawfully distribute and dispense controlled substances, and Arif was convicted at trial in August 2019 of one count of conspiracy to unlawfully distribute and dispense controlled substances and three counts of unlawfully distributing and dispensing controlled substances.

According to the evidence presented at the trial of Arif, from September 2015 through February 2016, Niazi owned and operated Aster Medical Clinic in Rosenberg, Texas, which he operated as an illegal pill mill.  Arif was an employee at Aster Medical Clinic who conspired with Niazi and a Dallas-based physician to unlawfully prescribe controlled substances to individuals posing as patients.  The evidence showed that Niazi hired Arif, who was not licensed to practice medicine in the United States, to pose as a physician at Aster Medical Clinic, where he saw the clinic’s customers as if he were a physician, and wrote prescriptions for them on prescription pads that had often been pre-signed by the physician, Arif’s co-conspirator. 

Through this scheme, Aster Medical Clinic dispensed prescriptions for over 200,000 dosage units of hydrocodone, a Schedule II controlled substance, and over 145,000 dosage units of carisoprodol, a Schedule IV controlled substance.  The combination of hydrocodone and carisoprodol is a dangerous drug cocktail with no known medical benefit, the evidence showed.

Trial evidence showed that Aster Medical Clinic issued unlawful prescriptions for controlled substances to over 40 people on its busiest days.  “Runners” brought numerous people to pose as patients at Aster Medical Clinic and paid for their visits in order to obtain prescriptions for controlled substances that the crew leaders then diverted onto the black market.  Aster Medical Clinic charged approximately $250 for each patient visit, and required payment in cash, the evidence showed.

One other co-conspirator has pleaded guilty based on his role in the unlawful prescription scheme at Aster Medical Clinic and is currently awaiting sentencing before U.S. District Judge Alfred H. Bennett of the Southern District of Texas.

The case was investigated by the DEA, and was brought as part of the Health Care Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Texas.  The case is being prosecuted by Assistant Deputy Chief Aleza Remis and Trial Attorney Alexis Gregorian of the Fraud Section.

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

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.

McALLEN, Texas – A 55-year-old man from Palmview has been ordered to federal prison following his conviction of possession with intent to distribute approximately 28 kilograms of cocaine, announced U.S. Attorney Ryan Patrick.

Rodolfo Urive Jr. pleaded guilty June 18.

Today, U.S. District Judge Ricardo H. Hinojosa ordered Urive to serve a 120-month sentence to be immediately followed by five years of supervised of release.

Urive attempted to pass the Falfurrias Border Patrol Checkpoint on Oct. 20, 2019. Law enforcement conducted a primary inspection and, during a free air sniff, a K-9 alerted to the presence of narcotics in the vehicle. In addition, an X-Ray examination also showed anomalies within three of the four doors.

A subsequent search of the vehicle revealed 23 packages concealed within the natural voids of the two passenger and rear driver side doors. They had an approximate weight of 28 kilograms and all tested positive for cocaine.

The drugs had an approximate street value of $750,000.

Urive admitted he was transporting the narcotics in his truck.

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

The Drug Enforcement Administration conducted the investigation with assistance of Customs and Border Protection. Assistant U.S. Attorney M. Alexis Garcia prosecuted the case.

HOUSTON - The former owner of Providence Home Health and Providence Hospice has agreed to pay $1.05 million to settle claims she knowingly and willfully paid improper kickbacks for referrals of Medicare patients to her businesses, announced U.S. Attorney Ryan K. Patrick along with Special Agent in Charge Miranda Bennett of the Department of Health and Human Services - Office of Inspector General (DHHS-OIG).

Teresita Lumanas Alquero owned both entities at the time of the alleged violations but has since sold them.

“We cannot tolerate kickbacks, especially those designed to affect our most vulnerable beneficiaries,” said Bennett. “We will continue to vigilantly investigate such conduct to ensure patients receive care from providers without improper motivations.”

Alquero had employed two individuals who filed a whistleblower lawsuit in June 2017 alleging various instances of fraud. Alquero allegedly paid kickbacks to a medical director for Providence. The medical directorship payments exceeded fair market value and were paid over a two-year period to induce him to refer Medicare patients to Providence for home health care and hospice services.

Medicare rules and guidelines prohibit such payments for referrals.

Alquero also allegedly submitted false claims for payment to Medicare identifying a specific attending physician from April 1, 2016, through Sept. 30, 2016. That physician was actually incarcerated during that time. His medical license was suspended April 12, 2016.

Under the False Claims Act, a private party can file an action known as a qui tam on behalf of the United States and receive a portion of the recovery. In this case, the relators will share $168,000 as a result of the settlement.

As part of the settlement, Alquero also agreed to a five-year period of exclusion from participation from Medicare, Medicaid and all other federal health care programs.

DHHS-OIG conducted the investigation along with the U.S. Attorney’s Office. Assistant U.S. Attorney Jill Venezia handled the matter.

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

McALLEN, Texas - A 33-year-old man from Progreso has been ordered to prison for smuggling contraband items into the East Hidalgo Detention Center, announced U.S. Attorney Ryan K. Patrick. 

Jhaziel Loredo pleaded guilty March 4.  

Today, District Judge Micaela Alvarez sentenced Loredo to 28 months in federal prison to be immediately followed by three years of supervised release. 

From October 2018 to August 2019, Loredo used his official position as a correctional officer at the East Hidalgo Detention Center to bring contraband into the facility. Some of the items included controlled substances. He then distributed them to federal inmates.

In exchange, Loredo accepted bribe payments from family members of the multiple inmates totaling approximately $1,900. 

Loredo 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 U.S. Marshals Service, Department of Justice - Office of Inspector General, and FBI conducted the investigation. Assistant U.S. Attorneys Amy L. Greenbaum and Patricia Cook Profit prosecuted the case. 

McALLEN, Texas – A 35-year-old Mexican national has admitted to possessing with intent to distribute over 40 kilograms of cocaine, announced U.S. Attorney Ryan K. Patrick.

On March 17, authorities conducted surveillance on what they suspected to be a drug stash house in McAllen. There, they observed Hugo Cristobal Garza-Ornelas departing the location in a possible load vehicle.

Later, they witnessed Ornelas conducting “heat runs,” which are unpredictable routes meant to evade law enforcement, and began pursuit. He attempted to flee from his vehicle on foot, but authorities quickly apprehended him.  

A search of the abandoned load vehicle led to the discovery of approximately 14.68 kilograms of cocaine. Law enforcement also searched the stash house Garza-Ornelas operated and seized another 26.74 kilograms of cocaine as well as a rifle and ammunition. 

The drugs had an estimated street value of $1.025 million.

U.S. District Judge Ricardo Hinojosa will impose sentencing Feb. 21, 2021. At that time, Garza-Ornelas faces a minimum of 10 years and up to life in federal prison and a possible $10 million maximum fine. He has been and will remain in custody pending that hearing.

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

LAREDO, Texas – A 28-year-old resident of Nuevo Laredo, Tamaulipas, Mexico, has been sentenced to a long prison term for conspiracy to possess with the intent to distribute meth, announced U.S. Attorney Ryan K. Patrick.

Gerardo Cervantes-Valenzuela pleaded guilty July 8.

Today, U.S. District Judge Marina Garcia Marmolejo ordered him to serve 120 months in federal prison. Not a U.S. citizen, he is expected to face deportation proceedings following his release. In handing down the sentence, the court noted Cervantes-Valenzuela’s prior federal conviction for drug trafficking.

On June 7, 2018, Cervantes-Valenzuela provided an informant with two drug-laden fire extinguishers. Law enforcement obtained the items and conducted an undercover operation which led to additional arrests and convictions of co-conspirators in Georgia.

The combined weight of the drugs from the two extinguishers was over 4.8 kilos of 99.73% pure meth.

The Drug Enforcement Administration (DEA) conducted the Organized Crime and Drug Task (OCDETF) operation known as Gelo Podre as part of Project Python – a nationwide operation targeting the Cártel de Jalisco Nueva Generación. It has resulted in more than 600 arrests, 350 indictments and significant seizures of money and drugs across the United States.

Laredo DEA led this investigation with the assistance of the Laredo Police Department; Henry County, Georgia, Police Department; Flint, Georgia, Circuit Drug Enforcement Task Force; Georgia Bureau of Investigation and Georgia State Troopers. Assistant U.S. Attorney Anthony J. Evans prosecuted the case.

LAREDO, Texas – A 59-year-old man from Laredo has been ordered to federal prison following his conviction for conspiring with others to import approximately 4.1 kilograms of heroin and 34.3 kilograms of cocaine from Mexico, announced U.S. Attorney Ryan K. Patrick. 

Leonardo Rubio pleaded guilty July 8.

Today, U.S. District Judge Marina Garcia Marmolejo ordered Rubio to serve a 72-month sentence to be immediately followed by four years of supervised release. In handing down the sentence, Judge Marmolejo noted Rubio’s prior drug convictions as well as the serious nature and amount of narcotics he attempted to smuggle in this case.

Rubio attempted to cross the border at the Juarez-Lincoln Bridge in Laredo on Jan. 24. At that time, law enforcement conducted an inspection of the interior of Rubio’s car and found a total of 33 packages concealed within the back wall and back seat of the vehicle.

Thirty of the packages had an approximate weight of 34 kilograms and field tested positive for cocaine, while the remaining three totaled over four kilograms and tested positive for heroin.

The drugs had an approximate street value of $1.19 million.

Rubio admitted he was importing and transporting the narcotics inside his vehicle.

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.

Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with assistance of Customs and Border Protection. Assistant U.S. Attorney Yoona Lim prosecuted the case.

LAREDO, Texas – Three Mexican men and a U.S. citizen have been sentenced for their part in a conspiracy to possess with intent to deliver a large amount of cocaine, announced U.S. Attorney Ryan K. Patrick.

Aaron Hervey Esparza Villarreal, 27, of Monterrey, Nuevo Leon, Mexico, pleaded guilty Aug. 4, admitting he was part of a conspiracy that involved smuggling cocaine hidden in a semi-truck. Mexican citizens Jose Contreras Rodriguez, 58, and Ernesto Yadir Martinez Campos, 39, pleaded guilty July 8, along with Viviano Hernandez, 41, a U.S. citizen who was residing in Mexico. 

Today, U.S. District Judge Marina Garcia Marmolejo handed Hernandez a 36-month term of imprisonment. Villarreal, Campos and Rodriguez were previously sentenced to 87, 60, and 48 months, respectively. Not U.S. citizens, Villarreal, Rodriguez and Campos are expected to face removal proceedings following their sentences.

“Smuggling illegal controlled substances poses a serious risk to public health and safety in our communities,” said Special Agent in Charge Shane Folden of Immigration and Customs Enforcement’s Homeland Security Investigations (HSI). “HSI will continue to work aggressively with our law enforcement partners to target drug smuggling organizations that make money by bringing dangerous drugs into our neighborhoods.”

On Jan. 17, law enforcement observed two men, later identified as Rodriguez and Hernandez, working on the vehicle. They then got into a sedan, left the area and met up with an SUV. At that time, Hernandez handed over trash bags to Villarreal in the SUV.

Authorities attempted to stop the SUV, but Villarreal led them on a high-speed pursuit before crashing into the Evelyn Motel on San Bernardo Avenue. Inside the vehicle was 31 kilograms of cocaine in the trash bags.

Law enforcement also apprehended Hernandez and Rodriguez as they attempted to enter Mexico. Campos was the driver of the semi and brought the drugs into the United States from Mexico. He was also taken into custody.

Villarreal 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. Assistant U.S. Attorney David Fawcett prosecuted the case.

LAREDO, Texas – A Laredoan and a South Carolina man have both admitted guilt after a smuggling attempt leads to a stash house, announced U.S. Attorney Ryan K. Patrick.

Eloy Martinez-Carranza, 35, of Ridgeland, South Carolina, pleaded guilty today while Jose Maria Ramirez, 28, Laredo, entered his plea Nov. 24. Both admitted to conspiring to transport illegal aliens.

Martinez-Carranza approached the US-83 Border Patrol (BP) checkpoint driving a semi-truck and trailer Oct. 1. Soon after his arrival, a BP K-9 alerted to the presence of contraband in the trailer.

Authorities cut the seal on the trailer and found 40 illegal aliens, including three unaccompanied minors. The inside temperature was approximately 109 degrees. Law enforcement also observed coffee grounds scattered around the trailer.

Martinez-Carranza claimed he was traveling to Laredo from South Carolina to work as a trucker. However, he did not have a commercial driver’s license or any training as a truck driver. 

Upon further investigation, authorities identified a location suspected to be the stash house for the illegal aliens. Law enforcement conducted surveillance and stopped a vehicle leaving the house. Ramirez was driver of that vehicle.

Law enforcement searched the home and found a total of 22 illegal aliens, including more unaccompanied minors.

U.S. District Judge Marina Garcia Marmolejo accepted their pleas and set sentencing for March 24. At that time, both men face up to 10 years in prison and a possible $250,000 maximum fine.

Martinez-Carranza and Ramirez have been and will remain in custody pending their sentencing.

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

HOUSTON – A 36-year-old Honduran national who was illegally residing in Houston has been charged with harboring 29 individuals, announced U.S. Attorney Ryan K. Patrick.

Immigration authorities arrested Mauro Dominguez-Maldonado late Thursday, Dec. 3. He is expected to make his initial appearance Monday, Dec. 7, before U.S. Magistrate Judge Frances Stacy.   

The criminal complaint, filed in federal court just moments ago, alleges Dominguez-Maldonado was in charge of watching over the aliens and performing multiple tasks in furtherance of a human smuggling operation. 

According to the allegations, one of the illegal aliens had fled the Southwest Houston residence and contacted authorities. Law enforcement responded and approached the location, at which time they observed a vehicle attempting to leave, but quickly return to the house. One individual exited and allegedly went inside the residence.  

Ultimately, authorities found Dominguez-Maldonado and 29 others - 28 males and one female, according to the complaint. All are allegedly from the countries of Mexico, Honduras, Guatemala, El Salvador and Cuba.

The charges further allege the residence had boarded-up windows and deadbolt locks on the inside doors.

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

Immigration and Customs Enforcement’s Homeland Security Investigations and Houston Police Department conducted the investigation. Assistant U.S. Attorney Richard Bennett 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.

McALLEN, Texas – A 44-year-old man has entered a guilty plea to aiding and abetting the export of defense articles from the United States, announced U.S. Attorney Ryan K. Patrick

Brett McGinnis, of Ormond Beach, Florida, admitted he mailed ammunition, firearms and firearms parts, or caused them to be mailed, to co-conspirators in McAllen who then would export them into Mexico. 

From on or about May 12 through Sept. 13, 2018, law enforcement seized over 6,000 rounds of various caliber ammunition, 1,100 saw links (5.56mm), 35 firearm magazines, three firearms, multiple upper and lower receivers and other firearms accessories that were intended to be illegally exported to Mexico. McGinnis had attempted to provide some to co-conspirators. Each of these items were designated defense articles requiring a license to export into Mexico.

McGinnis also admitted to shipping 60 practice M781 grenade cartridges (40mm) and firearms prior to May 2018 that were intended to be exported into Mexico. M781 practice rounds are considered explosive materials requiring a federal explosives license to transport.

McGinnis did not possess such a license to transport explosives or to export defense articles.

U.S. District Judge Micaela Alvarez accepted the plea and has set sentencing for Feb. 12, 2021.At that time, McGinnis will face up to 10 years in prison and a possible $250,000 maximum fine.

McGinnis was permitted to remain on bond pending sentencing.

Immigration and Customs Enforcement’s Homeland Security Investigations and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney Roberto Lopez Jr. is prosecuting the case.

McALLEN – A 42-year-old man from Edcouch has pleaded guilty to aiming a laser pointer at an aircraft, announced U.S. Attorney Ryan K. Patrick.

Luz Fernando Solis admitted that on May 3, he knowingly aimed the beam of a laser pointer at a Texas Department of Public Safety (DPS) helicopter.

The aircraft was providing assistance to local law enforcement when a laser beam struck the DPS helicopter twice. Authorities observed an individual, later identified as Solis, at the location where the laser beams originated.

They conducted a search of his residence and found the laser pointer.

Lasers have a dangerous effect on pilots when the beams of light strike an aircraft. The light can temporarily blind them. A laser, when aimed at an aircraft, can create a visual distraction or cause discomfort or even damage to a pilot’s eyes.

U.S. District Judge Micaela Alvarez will impose sentencing on Feb. 11, 2021. At that time, Solis faces up to five years in federal prison and a possible $250,000 maximum fine.

Solis was permitted to remain on bond pending sentencing.

The FBI and DPS conducted the investigation. Assistant U.S. Attorney Frances Blake Land is prosecuting the case.

CORPUS CHRISTI, Texas – A 41-year-old resident of Edinburg has been sentenced for his role in a drug conspiracy involving the federal mail system, announced U.S. Attorney Ryan K. Patrick.

Axel Noel Rodriguez Rivera pleaded guilty July 23.

Today, U.S. District Judge David S. Morales ordered Rivera to serve a 120-month sentence to be immediately followed by five years of supervised release. At the hearing, the court heard information detailing how Rivera used multiple mail center mailboxes to receive cocaine through the mail. In handing down the sentence, Judge Morales noted Rivera’s prior felony drug convictions.

“Illegal drugs have no business being a part of the mail stream,” said Inspector in Charge Adrian Gonzalez of the U.S. Postal Inspection Service.“Postal inspectors work tirelessly to rid the mail of illicit and dangerous drugs and provide a safe environment for postal employees and Postal Service customers. Today’s sentencing demonstrates that postal inspectors will never tolerate the use of the U.S. Mail to distribute illegal substances. We thank the members of the Hidalgo County Criminal District Attorney’s High Intensity Drug Trafficking Area (HIDTA) Task Force task force for partnering with us to bring this criminal to justice.” 

In January, law enforcement in McAllen began an investigation into a suspicious parcel which was later found to contain cocaine.

The investigation revealed Rivera had retrieved multiple parcels from mail centers within the Corpus Christi area. The packages were either sent through third-party shippers or the U.S. Postal Service. Each of the parcels contained cocaine.

Rivera was ultimately held accountable for approximately 10 kilograms of cocaine which had an estimated street value of $250,000.  

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 U.S. Postal Inspector Service and the Hidalgo County Criminal District Attorney’s High Intensity Drug Trafficking Area Task Force conducted the investigation. Assistant U.S. Attorney Reid Manning is prosecuting the case.

LAREDO, Texas – A federal grand jury has returned a four-count indictment charging a 27-year-old Laredoan for conspiring to transport an undocumented alien resulting in death, announced U.S. Attorney Ryan K. Patrick.

David Valadaz is expected to appear for his arraignment before a U.S. magistrate judge next week.  

The criminal complaint originally filed in the case alleges that on Nov. 5, law enforcement attempted to stop a Chevrolet Malibu for a traffic violation. Valadaz was allegedly driving.

Instead of complying, he fled at a high rate of speed, according to the charges. Authorities pursued him until he allegedly crashed the vehicle through a fence of a local business. According to the charges, Valadaz attempted to abscond on foot but was quickly apprehended.

The indictment further alleges authorities conducted a search of the vehicle and discovered three people who were all determined to be aliens illegally present in the United States. One allegedly died as a result of injuries sustained during the crash.

He is charged with conspiracy to transport an undocumented alien causing death and three counts of transporting an undocumented alien causing death.

If convicted, he faces up to life in prison as well as a possible $250,000 maximum fine.

Immigration and Custom Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of Texas Department of Public Safety. Assistant U.S. Attorney April Ayers-Perez 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.

BROWNSVILLE, Texas - A 19-year-old resident of Harlingen has been ordered to federal prison after he claimed he was being “edgy” when threatening to destroy the Federal Reserve, announced U.S. Attorney Ryan K. Patrick.

Joel Hayden Schrimsher pleaded guilty Aug. 24 to conveying false or misleading information through the internet concerning the potential destruction of a federal building. 

Today, U.S. District Judge Fernando Rodriguez handed Schrimsher a 24-month sentence to be immediately followed by two years of supervised release.

At the hearing, the court found sufficient evidence in support of Schrimsher’s intent and that he disrupted public, governmental or business functions. Judge Rodriguez also noted Schrimsher had precursor chemicals and bomb making recipes in his bedroom at the time he made the threats. In handing down the sentence, the court noted that he considered this a very serious crime. 

“The FBI and our law enforcement partners take threats of violence very seriously,” stated FBI Special Agent in Charge Christopher Combs. “While law enforcement is committed to investigating these threats, members of the public play a critical role in helping law enforcement protect our community from violence by reporting online threats.”

“Working with our law enforcement partners to prevent violence before innocent citizens are hurt or killed remains at the core of the Bureau of Alcohol, Tobacco , Firearms and Explosives (ATF) mission,” said Special Agent in Charge Fred Milanowski.

On June 6, 2019, authorities learned of an online threat made via Twitter from the username @HaydenJool displayed as @Hayden Ter(rawr)ist. They quickly identified Schrimsher as the source. The investigation also revealed a post on his account relaying a family conversation which ended with “Me: I’m gonna mail a bomb to the Federal Reserve.”

Law enforcement executed a search warrant for Schrimsher’s home in Harlingen on June 6, 2019. At that time, they discovered physical and documentary evidence in his room consistent with the message he sent about the Federal Reserve building. After Schrimsher’s arrest, authorities also found a photo in his cellphone of a fake certificate declaring him as “Most Likely to Damage Federal Property.”

Schrimsher admitted to having the account @HaydenJool and name Hayden Ter(rawr)ist as well as making a tweet about bombing and damaging a Federal Reserve building. He claimed he was being “edgy” when he made the threats.

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

The FBI, Cameron County District Attorney’s Office, police departments in Harlingen and Brownsville the ATF conducted the investigation. Assistant U.S. Attorneys Jody Young and Oscar Ponce prosecuted the case.       

McALLEN, Texas – A 29-year-old resident of Rio Grande City has been ordered to federal prison following her conviction of importing 59 kilograms of meth, announced U.S. Attorney Ryan K. Patrick.

Alma Rosa Salinas pleaded guilty Oct. 24, 2019.

Today, U.S. District Judge Randy Crane ordered Salinas to serve 63 months in prison to be immediately followed by three years of supervised release.

“As a consequence of her drug trafficking activities, Salinas will spend the next five years in federal prison,” said Special Agent in Charge Shane Folden of Immigration and Customs Enforcement’s Homeland Security Investigations (HSI). “HSI will continue to ensure that individuals involved in illegal drug smuggling operations are held accountable.”

On Aug. 7, 2019, Salinas attempted entry into the United States at the Los Ebanos Port of Entry driving a Ford F-150. She was referred to secondary inspection where a K-9 had alerted to the presence of concealed narcotics.

Authorities directed the driver to the secondary inspection area where they ultimately found liquid meth hidden in the vehicle’s gas tank weighing approximately 59 kilograms.

At the time of her plea, she admitted she knew there were narcotics in her vehicle and expected to be paid money for transporting them.

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

HSI conducted the investigation. Assistant U.S. Attorney Frances Blake Land prosecuted the case.

HOUSTON - An Indian national was sentenced to 20 years in prison for his role in operating and funding India-based call centers that defrauded U.S. victims out of millions of dollars between 2013 and 2016.

U.S. District Judge David Hittner sentenced Hitesh Madhubhai Patel aka Hitesh Hinglaj, 44, of Ahmedabad, India, for wire fraud conspiracy and general conspiracy to commit identification fraud, access device fraud, money laundering and impersonation of a federal officer or employee. Patel was also ordered to pay restitution of $8,970,396 to identified victims of his crimes.

“The long arm of federal law enforcement was key to bringing this con artist to justice,” said U.S. Attorney Ryan K. Patrick of the Southern District of Texas.  “Transnational call center scams are complex cases to investigate and prosecute but our agencies are up to the task.  Many of these fraudsters prey on the most vulnerable from the perceived safety of foreign lands so there is no sorry in seeing him head to prison.  His access to a phone is now greatly diminished. Across the globe, U.S. law enforcement is chasing and dismantling these schemes.”

“The defendant defrauded vulnerable U.S. victims out of tens of millions of dollars by spearheading a conspiracy whose members boldly impersonated federal government officials and preyed on victims’ fears of adverse government action,” said Acting Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “Today’s sentence demonstrates the department’s commitment to prosecuting high-level perpetrators of such nefarious schemes. Even fraudsters operating scams from beyond our borders are not beyond the reach of the U.S. judicial system.”

According to admissions in his plea agreement, Patel and his co-conspirators perpetrated a complex scheme in which employees from call centers in Ahmedabad, India, impersonated officials from the IRS and U.S. Citizenship and Immigration Services (USCIS) and engaged in other telephone call scams designed to defraud victims throughout the United States. U.S. victims were threatened with arrest, imprisonment, fines or deportation if they did not pay alleged monies owed to the government. Those who fell victim were instructed how to provide payment, including by purchasing general purpose reloadable (GPR) cards or wiring money. Upon payment, the call centers would immediately turn to a network of “runners” based in the United States to liquidate and launder the fraudulently obtained funds.

In his plea, Patel admitted to operating and funding several India-based call centers from which the fraud schemes were perpetrated, including the call center HGLOBAL. Patel corresponded by email and WhatsApp messaging frequently with his co-defendants to exchange credit card numbers, telephone scam scripts and call center operations instructions. The scripts included IRS impersonation, USCIS impersonation, Canada Revenue Agency impersonation, Australian Tax Office impersonation, payday loan fraud, U.S. Government grant fraud and debt collection fraud.

A co-defendant described Patel as “the top person in India and the boss for whom most of the other defendants worked,” and the owner of multiple call centers. Another stated Patel was arrested in India in 2016, but then paid a bribe and was released. Additionally, Patel admitted that a reasonably foreseeable loss of more than $25 million but less than $65 million was attributable to him, based on the government’s evidence against him. 

Patel was prosecuted in the United States after being extradited from Singapore in April 2019 to face charges in this large-scale telefraud and money laundering scheme. Singapore authorities apprehended Patel at the request of the United States pursuant to a provisional arrest warrant in September 2018 after Patel flew there from India.

“For years, this individual preyed on the fears of his victims to perpetuate a global scheme to manipulate U.S. institutions and taxpayers,” said Special Agent in Charge Mark B. Dawson of Immigration and Customs Enforcement’s Homeland Security Investigations (HSI). “Working with our law enforcement partners around the globe we have successfully executed the first ever large-scale, multi-jurisdictional investigation and prosecution targeting the India call center scam industry to hold him accountable for his illegal acts and deter similar scams in the future.”

“Since 2013, American taxpayers have been subjected to unprecedented attempts to fraudulently obtain money by individuals utilizing Indian call centers to impersonate IRS employees and scam American taxpayers,” said J. Russell George, the Treasury Inspector General for Tax Administration (TIGTA). “We appreciate the support of our law enforcement partners.”

“The sentence imposed today provides a clear deterrent to those who would seek to enrich themselves by extorting the most vulnerable in our society through these types of scams,” said Special Agent in Charge David Green of the Department of Homeland Security Office of Inspector General (DHS-OIG).  “These foreign call center operators and their U.S. based affiliates should know that their actions carry real life consequences, both for their victims and for themselves, and that there are dedicated agents and prosecutors who will work tirelessly to identify them, find them and hold them accountable for their crimes.”

The indictment in this case, which was unsealed in October 2016, charged Patel and 60 other individuals and entities with general conspiracy, wire fraud conspiracy and money laundering conspiracy. A total of 24 domestic defendants associated with this transnational criminal scheme were previously convicted and sentenced to terms of imprisonment of up to 20 years in the Southern District of Texas, District of Arizona and Northern District of Georgia. The defendants were also ordered to pay millions of dollars in victim restitution and money judgments and to forfeit seized assets. Some defendants were ordered to be removed based on their illegal immigration status, with another defendant having his U.S. citizenship revoked due to a separate conviction for immigration fraud. Charges remain pending for other India-based defendants. They are presumed innocent unless and until convicted through due process of law. 

HSI, DHS-OIG and TIGTA led the investigation of this case. The Justice Department’s Office of International Affairs and HSI Singapore provided significant support in securing and coordinating Patel’s arrest and extradition, working in concert with their counterparts at the Singapore Attorney General’s-Chambers and the Singapore Police Force.

Also providing significant support during the course of the investigation and prosecutions related to this scheme were the Ft. Bend County Sheriff’s Office; police departments in Hoffman Estates and Naperville, Illinois, and Leonia, New Jersey; San Diego County District Attorney’s Office Family Protection/Elder Abuse Unit; Secret Service; Small Business Administration - Office of Inspector General; IOC-2; INTERPOL Washington; USCIS; State Department’s Diplomatic Security Service; and the U.S. Attorney’s Offices of the Northern District of Alabama, District of Arizona, Central and Northern Districts of California, District of Colorado, Northern and Middle Districts of Florida, Northern District of Georgia, Northern District of Illinois, Northern District of Indiana, Eastern District of Louisiana, District of Nevada and the District of New Jersey.  The Federal Communications Commission’s Enforcement Bureau provided assistance in TIGTA’s investigation. Additionally, the Executive Office for U.S. Attorneys, Legal and Victim Programs provided significant support to the prosecution.

Assistant U.S. Attorneys Mark McIntyre and Craig Feazel of the Southern District of Texas prosecuted the case along with Trial Attorney Mona Sahaf of the Criminal Division’s Human Rights and Special Prosecutions Section (HRSP), former Trial Attorney Amanda S. Wick of the Criminal Division’s Money Laundering and Asset Recovery Section. Kaitlin Gonzalez of HRSP was the paralegal for this case.     

Anyone who believes they may be a victim of fraud or identity theft in relation to this investigation or other telefraud scam phone calls may contact the FTC via this website.

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

An Indian national was sentenced today to 20 years in prison followed by three years of supervised release in the Southern District of Texas for his role in operating and funding India-based call centers that defrauded U.S. victims out of millions of dollars between 2013 and 2016.

Hitesh Madhubhai Patel, aka Hitesh Hinglaj, 44, of Ahmedabad, India, was sentenced by U.S. District Judge David Hittner for the charges of wire fraud conspiracy and general conspiracy to commit identification fraud, access device fraud, money laundering, and impersonation of a federal officer or employee.  Patel was also ordered to pay restitution of $8, 970,396 to identified victims of his crimes.

“The defendant defrauded vulnerable U.S. victims out of tens of millions of dollars by spearheading a conspiracy whose members boldly impersonated federal government officials and preyed on victims’ fears of adverse government action,” said Acting Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division.  “Today’s sentence demonstrates the department’s commitment to prosecuting high-level perpetrators of such nefarious schemes.  Even fraudsters operating scams from beyond our borders are not beyond the reach of the U.S. judicial system.”

“The long arm of federal law enforcement was key to bringing this con artist to justice,” said U.S. Attorney Ryan K. Patrick of the Southern District of Texas.  “Transnational call center scams are complex cases to investigate and prosecute but our agencies are up to the task.  Many of these fraudsters prey on the most vulnerable from the perceived safety of foreign lands so there is no sorry in seeing him head to prison.  His access to a phone is now greatly diminished. Across the globe, U.S. law enforcement is chasing and dismantling these schemes.”

“For years, this individual preyed on the fears of his victims to perpetuate a global scheme to manipulate U.S. institutions and taxpayers,” said Special Agent in Charge Mark B. Dawson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Houston. “Working with our law enforcement partners around the globe we have successfully executed the first ever large-scale, multi-jurisdictional investigation and prosecution targeting the India call center scam industry to hold him accountable for his illegal acts and deter similar scams in the future.”

“Since 2013, American taxpayers have been subjected to unprecedented attempts to fraudulently obtain money by individuals utilizing Indian call centers to impersonate IRS employees and scam American taxpayers,” said J. Russell George, the Treasury Inspector General for Tax Administration (TIGTA).  “We appreciate the support of our law enforcement partners.”

“The sentence imposed today provides a clear deterrent to those who would seek to enrich themselves by extorting the most vulnerable in our society through these types of scams,” said Special Agent in Charge David Green of the Department of Homeland Security Office of Inspector General (DHS-OIG).  “These foreign call center operators and their U.S. based affiliates should know that their actions carry real life consequences, both for their victims and for themselves, and that there are dedicated agents and prosecutors who will work tirelessly to identify them, find them and hold them accountable for their crimes.”

According to admissions in his plea agreement, Patel and his co-conspirators perpetrated a complex scheme in which employees from call centers in Ahmedabad, India, impersonated officials from the IRS and U.S. Citizenship and Immigration Services (USCIS), and engaged in other telephone call scams designed to defraud victims throughout the United States.  U.S. victims were threatened with arrest, imprisonment, fines or deportation if they did not pay alleged monies owed to the government.  Those who fell victim were instructed how to provide payment, including by purchasing general purpose reloadable (GPR) cards or wiring money.  Upon payment, the call centers would immediately turn to a network of “runners” based in the United States to liquidate and launder the fraudulently obtained funds.

In his plea, Patel admitted to operating and funding several India-based call centers from which the fraud schemes were perpetrated, including the call center HGLOBAL.  Patel corresponded by email and WhatsApp messaging frequently with his co-defendants to exchange credit card numbers, telephone scam scripts, and call center operations instructions.  The scripts included IRS impersonation, USCIS impersonation, Canada Revenue Agency impersonation, Australian Tax Office impersonation, payday loan fraud, U.S. Government grant fraud, and debt collection fraud.

A co-defendant described Patel as “the top person in India and the boss for whom most of the other defendants worked,” and the owner of multiple call centers.  Another co-defendant stated that Patel was arrested in India in 2016, but then paid a bribe and was released.  Additionally, Patel admitted that a reasonably foreseeable loss of more than $25 million but less than $65 million was attributable to him, based on the government’s evidence against him.  

Patel was prosecuted in the United States after being extradited from Singapore in April 2019 to face charges in this large-scale telefraud and money laundering scheme.  Singapore authorities apprehended Patel at the request of the United States pursuant to a provisional arrest warrant in September 2018, after Patel flew there from India.

The indictment in this case, which was unsealed in October 2016, charged Patel and 60 other individuals and entities with general conspiracy, wire fraud conspiracy and money laundering conspiracy.  A total of 24 domestic defendants associated with this transnational criminal scheme were previously convicted and sentenced to terms of imprisonment of up to 20 years in the Southern District of Texas, District of Arizona and Northern District of Georgia.  The defendants were also ordered to pay millions of dollars in victim restitution and money judgments and to forfeit seized assets. Some defendants were ordered to be deported based on their illegal immigration status, with another defendant having his U.S. citizenship revoked due to a separate conviction for immigration fraud.  Charges remain pending for other India-based defendants.  They are presumed innocent unless and until convicted through due process of law.  

HSI, DHS-OIG and TIGTA led the investigation of this case.  The Justice Department’s Office of International Affairs and HSI Singapore provided significant support in securing and coordinating Patel’s arrest and extradition, working in concert with their counterparts at the Singapore Attorney General’s-Chambers and the Singapore Police Force.

Also providing significant support during the course of the investigation and prosecutions related to this scheme were: the Ft. Bend, Texas, County Sheriff’s Department; the Hoffman Estates, Illinois, Police Department; the Leonia, New Jersey, Police Department; the Naperville, Illinois, Police Department; the San Diego County District Attorney’s Office Family Protection/Elder Abuse Unit; the U.S. Secret Service; U.S. Small Business Administration Office of Inspector General; IOC-2; INTERPOL Washington; USCIS; U.S. State Department’s Diplomatic Security Service; and the U.S. Attorney’s Offices of the Northern District of Alabama, District of Arizona, Central District of California, Northern District of California, District of Colorado, Northern District of Florida, Middle District of Florida, Northern District of Georgia, Northern District of Illinois, Northern District of Indiana, Eastern District of Louisiana, District of Nevada, and the District of New Jersey.  The Federal Communications Commission’s Enforcement Bureau provided assistance in TIGTA’s investigation.  Additionally, the Executive Office for U.S. Attorneys, Legal and Victim Programs, provided significant support to the prosecution. 

Trial Attorney Mona Sahaf of the Criminal Division’s Human Rights and Special Prosecutions Section (HRSP), former Trial Attorney Amanda S. Wick of the Criminal Division’s Money Laundering and Asset Recovery Section, and Assistant U.S. Attorneys Mark McIntyre and Craig Feazel of the Southern District of Texas prosecuted the case.  Kaitlin Gonzalez of HRSP was the paralegal for this case.

A Department of Justice website has been established to provide information about the case to already identified and potential victims, and the public.  Anyone who believes they may be a victim of fraud or identity theft in relation to this investigation or other telefraud scam phone calls may contact the FTC via this website.

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.

HOUSTON – A 47-year-old Houstonian is now behind bars for his conviction of wire fraud, announced U.S. Attorney Ryan K. Patrick.

John Wesley Sarpy pleaded guilty Dec. 17, 2018.

Today, U.S. District Judge Vanessa D. Gilmore ordered him to serve a 135-month sentence to be immediately followed by three years of supervised release. He was also ordered to pay a $5,000 fine. At the hearing, the court noted that not only did he attempt to commit fraud while out on bond, he also obstructed justice when he cut off his GPS ankle monitor prior to sentencing. In handing down the sentence, Judge Gilmore noted his criminal history of committing fraud and the sophisticated nature of this offense.

“Sarpy, a recidivist fraudster, repeatedly tried to obtain multi-million dollar loans using falsified documents,” said Special Agent in Charge Perrye K. Turner of the FBI. “While the fruit of his perseverance didn't result in obtaining any money, our case agents feared that at some point he would successfully get funded with a multi-million dollar payday, all based on fraud. Our agents were determined to make sure that didn't happen, and they stopped Sarpy in his tracks.”

Sarpy knowingly submitted fraudulent documents in an attempt to obtain multimillion-dollar loans from various lending institutions. During the scheme, Sarpy incorporated several different companies to perpetuate his fraud including  Sarpy Investment Corporation and Legacy International Production & Exploration Corporation. Some of the false documents he submitted included financial audit opinions for Sarpy Investment Corporation which purported to be from the auditing firms KPMG, BDO and PricewaterhouseCoopers. However, the investigation revealed Sarpy was not a client of any of these companies and all the financials he submitted in support of all the loans were forged and fictitious.

On four separate occasions in 2018, Sarpy submitted such false audit reports with forged signatures and false financials to four different institutions in failed attempts to secure approximately $51 million in loans.

Sarpy was previously released on bond but violated his conditions of release when he cut off his GPS monitor and fled. Law enforcement later found him in the Northern District of Texas and took him into custody where he remains pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

The FBI conducted the investigation. Assistant U.S. Attorney Suzanne Elmilady prosecuted the case.   

HOUSTON – A 25 year-old resident of Houston has been ordered to federal prison after he threatened two young girls and required them to engage in commercial sex, announced U.S. Attorney Ryan K. Patrick.

A Houston federal jury deliberated for one hour before returning a guilty verdict against Romello Lee following less than three days of trial on March 6. He was convicted on one count of trafficking a minor for commercial sex and one count of trafficking a minor by force for commercial sex.

Today, U.S. District Judge David Hittner sentenced Lee to serve a total of 480 months in federal prison. He was further ordered to pay restitution to known victims and will serve the rest of his life on supervised released following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. He has also been ordered to register as a sex offender.

“Too many of our children are falling victims to sex trafficking and predators like Romello Lee,” said Special Agent in Charge Perrye K. Turner of the FBI. “We hope today's sentence sends a strong message to those who continue to exploit our youth, but we also hope it sheds promise to sex trafficking victims waiting to be rescued.”

During the trial, the jury heard Lee used Backpage.com, a defunct solicitation website, to advertise the sexual services of two minor victims, ages 14 and 16. 

From July 2017 to March 2018, Lee harbored, advertised and profited from commercial sex acts of the 16-year-old minor victim. He required her to earn a quota of up to $500 per night and would threaten and beat her if she disobeyed him.

A second victim was held against her will and required to engage in sexual acts by threats of violence and coercion.  

Jurors heard from the second victim as well as another adult victim he managed. They testified as to the consequences if they were to escape and how they were expected to be branded with a tattoo of his name or rap label.

The jury also saw numerous Backpage ads Lee posted as well as Instagram posts and text messages between him and the minor victim, detailing his control of her dates, her nightly quota and her beatings.

Law enforcement ultimately arrested Lee in a sting operation with one of the minors at a hotel in northwest Houston. 

Lee 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 Texas Department of Public Safety, Houston Police Department and FBI conducted the investigation as part of the Human Trafficking Rescue Alliance (HTRA).

HTRA law enforcement includes members of the Houston Police Department, FBI, Immigration and Customs Enforcement’s Homeland Security Investigations, Texas Attorney General’s Office, IRS-Criminal Investigation, Department of Labor (DOL), DOL – Wage and Hour Division, Department of State, Texas Alcoholic and Beverage Commission, Texas Department of Public Safety,  Department of Homeland Security – Office of Inspector General (OIG), Social Security Administration – OIG and Sheriff’s Offices in Harris and Montgomery counties in coordination with District Attorney’s offices in Harris, Montgomery and Fort Bend Counties.

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

Assistant U.S. Attorneys Richard D. Hanes and Heather Winter prosecuted the case.

LAREDO, Texas – A 44-year-old U.S. citizen has been ordered to federal prison following his conviction of conspiring to conspiracy to possess with intent to distribute marijuana, announced U.S. Attorney Ryan K. Patrick.

Roberto Villarreal, Zapata, pleaded guilty Aug. 4.

Today, U.S. District Judge Marina Garcia Marmolejo handed Villarreal a 120-month sentence to be immediately followed by eight years of supervised release.

At the hearing, the court heard that he has two prior federal marijuana-related convictions and was serving a supervised term of release for one of those sentences when he was arrested for the current crime. The court revoked the remainder of that term and ordered Villarreal serve an additional 30 months to be served concurrently for a total 120-month term of imprisonment.

Villarreal admitted that on March 15 he drove to a ranch near Falcon Lake intending to pick up 183 kilograms of marijuana. He initially grabbed the 18 bundles, but saw authorities and returned the drugs to the ranch and intended to get them later.

Law enforcement conducted a traffic stop, at which time Villarreal admitted his plan. He then led them to the ranch where he left the drugs. There, authorities discovered a boot print matching Villarreal’s shoes.

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

The Drug Enforcement Administration conducted the investigation with the assistance of Border Patrol and the Zapata County Sheriff’s Office. Assistant U.S. Attorney Paul Harrison prosecuted the case.

HOUSTON – Two Houston area men have been charged for attempting to fraudulently sell 50 million non-existent N95 facemasks to a foreign government, announced U.S. Attorney Ryan K. Patrick.

Paschal Ngozi Eleanya, 46, turned himself in to authorities today and is expected to make his initial appearance before U.S. Magistrate Judge Sam S. Sheldon at 2 p.m. Authorities took Arael Doolittle, 55, into custody Nov. 20. He made his initial appearance yesterday and is set for an arraignment and detention hearing Nov. 25 at 10 a.m.

A federal grand jury returned the three-count indictment Nov. 19. Both are charged for their role in a scheme to sell 50 million 3M model 1860 N95 respirator masks to a foreign government they did not actually possess. The indictment also alleges they defrauded a foreign government out of more than $317 million - the total purchase price of the masks

According to the indictment, Doolittle, Eleanya and their brokers negotiated a sales price for the masks that was five times the public list price that 3M had set. The two expected to personally obtain up to $275 million as a result of the fraudulent scheme, according to the charges. Based on their representations, the foreign government allegedly wired the funds to complete the purchase.

Authorities disrupted the transaction before it could be completed.

If convicted, both Doolittle and Eleanya face up to five years in prison for conspiracy and up to 20 years in prison for each of the two counts of wire fraud. Each of these charges also carry a possible $250,000 maximum fine.

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

Attorney General William P. Barr created the COVID-19 Hoarding and Price Gouging Task Force which coordinates efforts between the Antitrust Division and U.S. Attorneys across the country wherever illegal activity involving protective personal equipment occurs. The Department of Health and Human Services has issued a notice designating categories of health and medical supplies that must not be hoarded or sold for exorbitant prices.

The public is asked to report COVID-19 fraud, hoarding or price-gouging to the National Center for Disaster Fraud’s (NCDF) National Hotline at (866) 720-5721 or visit The Department of Justice’s NCDF website.

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

In San Antonio today, 34-year-old Kristopher Sean Matthews (aka Ali Jibreel) admitted to conspiring to provide material support to the designated foreign terrorist organization Islamic State of Iraq and al-Sham/Syria (aka ISIS), announced Assistant Attorney General for National Security John C. Demers, U.S. Attorney Gregg N. Sofer for the Western District of Texas, and FBI Special Agent in Charge Christopher Combs, San Antonio Division.

Appearing before U.S. Magistrate Judge Elizabeth S. Chestney, Matthews pleaded guilty to a conspiracy charge to provide material support to ISIS.  By pleading guilty, Matthews admitted that since May 2019, he conspired with 22-year-old Jaylyn Christopher Molina (aka Abdur Rahim) of Cost, TX, to share bomb-making information for the purposes of domestic and foreign attacks on behalf of ISIS and to radicalize and recruit other individuals to support ISIS.

Matthews faces up to 20 years in federal prison.  He remains in federal custody pending sentencing scheduled for 10:30 am on March 4, 2021, before Chief U.S. District Judge Orlando L. Garcia in San Antonio.

Molina and Matthews were charged by a federal grand jury indictment handed down on Oct. 14, 2020, with one count of conspiracy to provide material support to a designated foreign terrorist organization and one substantive count of providing material support to a designated foreign terrorist organization.  Molina, who remains in federal custody, faces up to 40 years in federal prison upon conviction.

The San Antonio FBI’s Joint Terrorism Task Force (JTTF), with valuable assistance from the San Antonio Police Department, the United States Secret Service, and the Gonzalez County Sheriff’s Office, continues to investigate this case.  Assistant U.S. Attorneys Mark Roomberg, William R. Harris, and Eric Fuchs and DOJ Trial Attorneys George Kraehe and Felice J. Viti of the National Security Division’s Counterterrorism Section are prosecuting this case on behalf of the government.

It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt.  Molina is presumed innocent until proven guilty in a court of law.

HOUSTON – Five local members of the violent Mara Salvatrucha (MS-13) international street gang are set to appear in court following charges of conspiracy and murder in aid of racketeering, announced U.S. Attorney Ryan K. Patrick.

Wilson Jose Ventura-Mejia, 24, Jimmy Villalobos-Gomez, 23, Angel Miguel Aguilar-Ochoa, 35, Walter Antonio Chicas-Garcia, 23, and Marlon Miranda-Moran, 21, will appear for their arraignments and detention hearings via video before U.S. Magistrate Judge Sam S. Sheldon at 10 a.m. All are El  Salvadorian nationals who illegally resided in Houston. Also charged is Franklin Trejo-Chavarria, 23, who is currently in custody in El Salvador.

A federal grand jury returned the indictment Nov. 12. All are charged with conspiracy and murder in aid of racketeering.  

The indictment alleges they committed a 2018 murder in furtherance of the MS-13 enterprise. The victim was allegedly beaten to death with machetes in order for the defendants to further their positions in the enterprise. 

If convicted, they face a potential death sentence.

The FBI, Immigration and Customs Enforcement’s Homeland Security Investigations and Houston Police Department conducted the investigation.  Assistant U.S. Attorneys Britni Cooper and John Michael Lewis are prosecuting the case along with Trial Attorneys Julie A. Finocchiaro, Gerald Collins and Matthew Hoff from the Department of Justice’s Organized Crime and Gang Section.

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

Five local members of the violent Mara Salvatrucha (MS-13) international street gang are set to appear in court following charges of conspiracy and murder in aid of racketeering, announced Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division and U.S. Attorney Ryan K. Patrick of the Southern District of Texas.

Wilson Jose Ventura-Mejia, 24; Jimmy Villalobos-Gomez, 23; Angel Miguel Aguilar-Ochoa, 35; Walter Antonio Chicas-Garcia, 23; and Marlon Miranda-Moran, 21, appeared for their arraignments and detention hearings via video before U.S. Magistrate Judge Sam S. Sheldon. All are El Salvadorian nationals who illegally resided in Houston, Texas.  Also charged is Franklin Trejo-Chavarria, 23, who is currently in custody serving a sentence in El Salvador for charges there.  

A federal grand jury returned the indictment Nov. 12.  All are charged with conspiracy and murder in aid of racketeering.  

The indictment alleges the defendants committed a 2018 murder in furtherance of the MS-13 enterprise.

The FBI, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and Houston Police Department conducted the investigation.  Trial Attorneys Julie A. Finocchiaro, Gerald Collins and Matthew Hoff from the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Britni Cooper and John Michael Lewis are prosecuting the case.

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

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.

HOUSTON – A tax preparer has been charged with preparing a fraudulent joint 2013 tax return for taxpayers, announced U.S. Attorney Ryan K. Patrick. 

Norma Galvan is expected to make her initial appearance before U.S. Magistrate Judge Sam S. Sheldon at 2 p.m. today.

The charges allege Galvan prepared materially false information on her clients’ joint 2013 income tax return. She allegedly claimed those taxpayers had a business loss of more than $53,000 and over $25,000 in income tax withholdings. As a result the tax return falsely claimed a refund of more than $18,000, according to the criminal information.  

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

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

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

HOUSTON – A 28-year-old Mexican citizen who illegally resided in Houston is set to appear in federal court on charges of conspiracy and possession with intent to distribute meth, announced U.S. Attorney Ryan K. Patrick.

Eduardo Leon-Mata is a suspected member of the Cartel Jalisco Nueva Generación. Today, he is set for an arraignment and detention hearing at 3 p.m. before U.S. Magistrate Andrew M. Edison.

On. Nov. 13, authorities executed a search warrant at Boyd Street in Houston, according to the charges. Upon their arrival, Leon-Mata allegedly attempted to flee through a bedroom window and hide in a nearby backyard. They arrested him shortly thereafter.

The residence was allegedly operating as a clandestine drug laboratory for converting meth from liquid to crystalized form. The charges allege law enforcement seized loose material and packages totaling 86 kilograms – 54 and 32 kilograms, respectively, of a crystal-like substance and meth in liquid form.

The complaint alleges Leon-Mata had been smuggled into the United States approximately two weeks prior for the purpose of converting the meth.

If convicted, he faces a minimum of 10 years and up to life in federal prison as well as a possible $10 million maximum fine.

Immigrations and Customs Enforcement’s Homeland Security Investigations and Drug Enforcement Administration conducted the investigation with the assistance of the Harris County Sheriff’s Office as part of the Organized Crime and Drug Enforcement Task Force (OCDETF).

Assistant U.S. Attorney Eric D. Smith is prosecuting the case.

OCDETF 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.

OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF program can be found HERE.

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

LAREDO, Texas – A 20-year-old Laredo man has been sentenced after he admitted to conspiring to transport aliens, announced U.S. Attorney Ryan K. Patrick.

Luis Alberto Puente pleaded guilty Jan. 10, admitting he acted as a scout for a tanker truck loaded with 23 aliens. 

Today, U.S. District Judge Marina Garcia Marmolejo ordered Puente to serve a 51-month sentence to be immediately followed by three years of supervised release. At the hearing, the court noted his other criminal behavior while he was previously out on bond.

On Sept. 13, 2019, a tanker truck arrived at the Border Patrol (BP) checkpoint on Texas State Highway 359 near Bruni. At that time, a K-9 had alerted to the presence of concealed humans and/or narcotics. Authorities directed the driver to the secondary inspection area.

Instead of complying, he accelerated at a high rate of speed and fled the checkpoint. Authorities pursued him until he came to a stop on the side of the road and absconded into the brush.

During the pursuit, a blue Ford F-150 arrived at the checkpoint. Puente was the passenger in that vehicle. He ultimately admitted to acting as a scout for the tanker truck, looking out for law enforcement as the truck drove to San Antonio.

Law enforcement unlocked the hatch to the tank of the truck, releasing hot steam. They then recovered 23 people who had been standing in approximately two feet of water and sweating profusely. They asked for help and for fresh air.

All were determined to be in the United States illegally from Mexico, Guatemala, Ecuador and Honduras. They had paid to be smuggled into the country. Several described the fear they felt while riding in the tanker. One stated she was forced into the tanker against her will.

Puente has been in custody since violating 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.

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

A Texas physician was sentenced to five years in prison today for her role in a multi-million Medicare fraud scheme. 

Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Ryan K. Patrick of the Southern District of Texas, Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office, Special Agent in Charge Miranda Bennett of the U.S. Department of Health and Human Services Office of the Inspector General’s (HHS-OIG) Dallas Regional Office, and the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU) made the announcement.

Yolanda Hamilton, M.D., 57, of Harris County, Texas, the physician-owner and operator of HMS Health and Wellness Center, PLLC, was sentenced by U.S. District Judge Keith P. Ellison of the Southern District of Texas.  Judge Ellison also ordered the defendant to pay $9.5 million in restitution.

Hamilton was convicted by a federal jury of one count of conspiracy to commit health care fraud, one count of conspiracy to solicit and receive health care kickbacks, and two counts of false statements relating to health care matters in October 2019.  According to the evidence presented at trial, from January 2012 to August 2016, Hamilton conspired with others to defraud Medicare by signing false and fraudulent home healthcare paperwork that was used to submit fraudulent claims to Medicare. 

Hamilton and her co-conspirators made it appear that the patients qualified and received home healthcare services, when they often did not.  In fact, members of the conspiracy paid the patients to receive the home healthcare services, which were often medically unnecessary, not provided, or both.  The evidence also showed that Hamilton required home healthcare agencies to pay an illegal kickback, which Hamilton disguised as a “co-pay,” in exchange for Hamilton certifying and recertifying patients for home healthcare services. 

Hamilton typically would not release the home healthcare paperwork until the home healthcare companies or their marketers paid her the kickback, the evidence showed.  The scheme resulted in approximately millions in false and fraudulent claims for home-health services to Medicare and in Hamilton receiving over $300,000 in kickbacks.

All defendants are presumed innocent until convicted beyond a reasonable doubt in a court of law.

To date, several co-conspirators including marketers, patient recruiters along with doctors, and nurses who purchased plans of care and other signed medical documents from Hamilton have been charged, found guilty, or pleaded guilty to conspiracy to commit health care fraud and/or paying or receiving kickbacks.

The FBI, HHS-OIG, and MFCU investigated the case, which was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Texas.  Trial Attorneys Catherine Wagner, Thomas Tynan, and Carlos Lopez of the Fraud Section prosecuted the case.  Trial Attorney Scott Armstrong indicted the case.

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

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.

HOUSTON – A total of eight people have been taken into custody on charges involving a five-year drug trafficking and money laundering conspiracies, announced U.S. Attorney Ryan K. Patrick.   

Federal authorities arrested Houston residents Brenda Natalie Alanis Duran, 36, Maria Isabel Lara Alanis, 52, Ramiro Alanis Espitia aka “Pelon,” 41, Luis Ricardo Rocha, 36, Oraldo Lozano Zamarripa, 35, Xavier Duran, 49, Manuel Desiderio Nandin, 22, and Domingo Daniel Nandin, 27. They made their initial appearances today. They are scheduled for detention hearings Nov. 23 at 10 a.m. before U.S. Magistrate Sam S. Sheldon. The indictment remains sealed as to those charged but not as yet in custody.

During the arrests, authorities also seized $600,155 and one firearm at Xavier Duran’s residence. They also found and seized another firearm as well as a stolen trailer from the residence of Maria Isabel Alanis.

A federal grand jury in Houston returned the eight-count indictment Oct. 29. According to the charges, the drug trafficking and money laundering organization distributed more than 13 kilograms of cocaine, over one kilogram of heroin and over 100 kilograms of marijuana. The group also allegedly laundered more than $133,000 in drug proceeds.

All are charged in varying counts. Those convicted for conspiracy to possess with intent to distribute at least five kilograms of cocaine face a mandatory minimum of 10 years and up to life in federal prison. The other varying drug charges carry a minimum of five and up to 40 years in prison, while conspiracy to commit money laundering carries a potential 20-year-sentence. 

Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation along with the Drug Enforcement Administration, IRS-Criminal Investigation and the Houston Police Department.

The Organized Crime Drug Enforcement Task Force (OCDETF) investigation is dubbed “Walking Eagle.”  

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

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

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

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

LAREDO, Texas – A 33-year-old resident of Nuevo Laredo, Tamaulipas, Mexico, has been ordered to federal prison following his conviction of conspiracy to import and importing more than 1,000 kilograms of marijuana, announced U.S. Attorney Ryan K. Patrick.

Ruben Maldonado-Espino pleaded guilty July 7.

Today, U.S. District Judge Marina Garcia-Marmolejo handed Maldonado-Espino a 36-month term of imprisonment. Not a U.S. citizen, he is expected to face removal proceedings following the sentence. At the hearing, the court heard additional testimony about his false claims of coercion. In handing down the sentence, the court noted that falsely claiming your family is being threatened hurts others – those that actually do have that happen. More who falsely claim the cartel is threatening them could cause authorities to be less inclined to believe them.

“While some may mistakenly view smuggling controlled substances as a path to a quick profit, the sentencing of Maldonado-Espino demonstrates 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). “HSI will continue to work closely with our law enforcement partners to protect our communities and bring drug smugglers to justice.”

On May 7, Maldonado-Espino drove a semi-truck and trailer through the World Trade Bridge near Laredo. Authorities conducted an X-ray examination of the vehicle which revealed anomalies in the trailer.

Law enforcement began to open the doors, at which time Maldonado-Espino admitted he knew drugs were in the trailer. He claimed a Mexican drug cartel was holding his wife hostage and forced him to smuggle the narcotics.

However, authorities contacted his wife who appeared to be calm and not under distress. Maldonado-Espino eventually admitted the story was a lie he was told to give to law enforcement.

Law enforcement ultimately found 198 bundles of marijuana inside the trailer. They had an approximate weight of 4,601 pounds and an estimated street value of $875,000.

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.

HSI conducted the investigation with the assistance of Customs and Border Protection. Assistant U.S. Attorney Paul Harrison prosecuted the case.

CORPUS CHRISTI, Texas – A Corpus Christi federal jury has convicted a legal permanent resident who resided in Houston for transporting illegal aliens in a vehicle disguised as a FedEx truck, announced U.S. Attorney Ryan K. Patrick

The jury deliberated for six hours before convicting Yoel Marrero-Goitizolo, 42, following a one-day trial.

On Feb. 3, Marrero-Goitizolo arrived at the Border Patrol Checkpoint near Sarita. He was driving a vehicle that appeared to be a FedEx Ground truck. However, authorities noticed the vehicle seemed to be unevenly painted. The jury also heard that a K-9 also had alerted to the vehicle. Law enforcement then referred Marrero-Goitizolo to the secondary area for further inspection.

Authorities subsequently discovered 12 aliens who were citizens and nationals of Honduras, Brazil, Mexico, El Salvador and People’s Republic of China – all illegally present in the United States. Testimony revealed they had been hiding in the truck’s cargo area.

The jury also heard that Marrero-Goitizolo was wearing a FedEx polo shirt. However, testimony revealed Marrero-Goitizolo had never worked for the company and that the truck did not belong to FedEx.

Marrero-Goitizolo attempted to convince the jury that he did not knowingly transport the aliens. They did not believe those claims and found him guilty as charged.

U.S. District Judge Drew B. Tipton presided over the trial and set sentencing for Feb. 9, 2021. At that time, he faces up to five-years imprisonment. The charge also carry a possible $250,000 maximum fine.

Previously released on bond, Marrero-Goitizolo was taken into custody following the conviction today where he will remain pending sentencing.

Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with assistance from Customs and Border Protection. Assistant U.S. Attorney Yifei Zheng is prosecuting the case.

BROWNSVILLE – A 60-year-old resident of Brownsville has been ordered to federal prison following his conviction of failure to register as a sex offender as required under the Sex Offender Registration and Notification Act (SORNA), announced U.S. Attorney Ryan K. Patrick.

Albert Frank Garza pleaded guilty Sept. 2.

Today, U.S. District Judge Rolando Olvera ordered Garza to serve 24 months in federal prison. He was further ordered to serve two years on supervised released following completion of his prison term, during which he will have to comply with numerous requirements designed to restrict his access to children and the internet. He will also again have to register as a sex offender.

Garza is a twice-convicted sex offender. He was convicted of first degree sexual abuse with a child under the age of 12 in 1980 and again just three years later for indecent liberties with a child under the age of 14. He received respective sentences of 48 months and 10 years in prison.

As a sex offender, he is required under SORNA to register as a sex offender every year. If he relocates, he is required to register in the new jurisdiction within three days after arrival.  

Previously residing in Colorado, he had registered as a sex offender until May 30, 2014. At that time, he signed and dated an annual form acknowledging a follow-up date of June 1, 2015. However, he failed to register in 2015 as required.

In fact, he never registered as a sex offender again, and his whereabouts were unknown until 2019.  

On Sep. 24, 2019, local authorities arrested Garza for failure to identify and possession of a controlled substance. At the time of his arrest, Garza used the fictitious name of Martin Infante Garcia and indicated he was homeless. A street outreach advocate at a local homeless shelter recognized his photo and identified him as someone who visited the shelter daily for breakfast from April 2019 through June 2019.

Although Garza resided in Texas from at least April 2019 until the date of his arrest in September, he failed to register within the required three days of his arrival.  

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 U.S. Marshals Service conducted the investigation. Assistant U.S. Attorney Nikki Piquette prosecuted the case.  

HOUSTON – Seven individuals across two states have been charged in a Houston federal indictment unsealed today for their alleged participation in a scheme to obtain approximately $16 million in forgivable Paycheck Protection Program (PPP) loans.

The Small Business Administration (SBA) guarantees PPP loans under the Coronavirus Aid, Relief and Economic Security (CARES) Act.

Amir Aqeel, 52, and Pardeep Basra, 51, both of Houston; Rifat Bajwa, 51, Richmond; Mayer Misak, 40, Cypress; Mauricio Navia, 41, Katy; and Richard Reuth, 57, Spring, are expected to make their initial appearances at 2 p.m. today before U.S. Magistrate Judge Andrew M. Edison.

They are all charged with conspiracy to commit wire fraud and wire fraud. The indictment also charges Aqeel with three counts of money laundering.

Also named in the Houston indictment is Siddiq Azeemuddin, 41, of Naperville, Illinois. He also faces charges of conspiracy to commit wire fraud, wire fraud and money laundering. Azeemuddin will appear today before U.S. Magistrate Judge Heather K. McShain of the Northern District of Illinois. 

“Some fraudsters create the most complicated schemes to steal money from the taxpayer. Just imagine how productive they could be if they put their creativity and effort into noble and useful work,” said U.S. Attorney Ryan K. Patrick. “With the great work of so many partner agencies, we will bring to justice those who steal from the treasury.”

“These defendants allegedly participated in a scheme to capitalize on the pandemic by filing at least 80 fraudulent PPP applications and enriching themselves by $16 million, spending it on luxury items such as a Porsche and Lamborghini automobiles,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “The department and our law enforcement partners will continue to aggressively pursue those who would seek to illegally exploit the ongoing national emergency for their own benefit.”

The indictment alleges all conspired to submit more than 80 fraudulent PPP loan applications by falsifying the number of employees and the average monthly payroll expenses of the applicant businesses. In support of these fraudulent loan applications, they conspired to submit, and did submit, fraudulent bank records and/or fake federal tax forms, according to the charges. Some of the PPP loan applications were allegedly submitted on behalf of companies the defendants controlled.

Other loan applications were submitted on behalf of entities that third-parties allegedly owned, according to the indictment. In exchange for these, several of the defendants received large kickbacks, according to the charges.

The indictment further alleges the defendants laundered a portion of the fraudulent proceeds by writing checks from companies that received PPP loans to fake employees. Those that received checks included some of the defendants and their relatives, according to the charges. The fake paychecks were then allegedly cashed at Fascare International Inc. dba Almeda Discount Store - a cash checking company Azeemuddin owned.

The indictment alleges that over 1,100 fake paychecks totaling more than $3 million in fraudulent PPP loan proceeds were cashed at Azeemuddin’s business.

“Greed has no place in SBA’s programs that are intended to provide assistance to the nation’s small businesses struggling with the pandemic challenges,” said Special Agent in Charge (SAC) Sharon Johnson of the SBA-Office of Inspector General (OIG) Central Region. “OIG and its law enforcement partners will relentlessly pursue fraudsters and bring them to justice. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”

“These defendants are alleged to have defrauded a program intended to assist hardworking Americans who have been unfairly impacted as a result of this unprecedented and challenging health crisis,” said SAC Mark B. Dawson of Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Houston. “HSI remains committed to working with our law enforcement partners to bring every asset to bear against anyone who seeks to take advantage of the pandemic to deliberately harm and deceive others for their own profit.”

“To support small and community banks, federal home loan banks can accept PPP loans as collateral when making loans to their members,” said SAC Catherine Huber of the Federal Housing Finance Agency (FHFA) - OIG, Central Region. “OIG is proud to work with our partners in law enforcement to prevent, detect and deter attempts to perpetrate fraud in the federal home loan bank system and steal the assistance intended for small business owners and employees under this important part of the CARES Act.”

“Today’s indictment describes significant abuse of public funds meant for struggling American businesses and families,” said SAC Laurie L. Younger of the Federal Deposit Insurance Corporation (FDIC) - OIG.  “This alleged fraud represents substantial, egregious and coordinated actions that undermine faith in our financial systems and programs enacted by Congress to help our nation recover from economic damage brought on by COVID-19. We thank our law enforcement partners for their cooperation in this investigation.”

“The Treasury Inspector General for Tax Administration aggressively pursues those who endeavor to defraud programs afforded to the American people under the CARES Act,” said J. Russell George, Treasury Inspector General for Tax Administration (TIGTA). “We appreciate the efforts of the Department Justice and our law enforcement partners in this effort.”  

Federal agents also executed 45 seizure warrants in conjunction with the case. Some of items seized included a Porsche and a Lamborghini allegedly purchased with illegally obtained funds.

This is an ongoing investigation. If the public has further information regarding this fraud, please contact the Department of Homeland Security at 1-866-DHS-2-ICE.

The CARES Act is a federal law enacted on March 29, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief the CARES Act provides is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP.  In April, Congress authorized over $300 billion in additional PPP funding.

The PPP allows qualifying small-businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal on the PPP loan to be forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses at least a certain percentage of the PPP loan proceeds on payroll expenses. 

SBA-OIG, HSI, FHFA-OIG, FDIC-OIG and TIGTA are conducting the investigation. Assistant U.S. Attorneys Rodolfo Ramirez and Kristine Rollinson are prosecuting the case along with Trial Attorneys Louis Manzo and Della Sentilles of the Criminal Division’s Fraud Section.

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

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 federal criminal indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

Seven individuals across two states were charged in an indictment unsealed today for their alleged participation in a scheme to obtain approximately $16 million in forgivable Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

Amir Aqeel, 52, and Pardeep Basra, 51, both of Houston, Texas; Rifat Bajwa, 51, of Richmond, Texas; Mayer Misak, 40, of Cypress, Texas; Mauricio Navia, 41, of Katy, Texas; and Richard Reuth, 57, of Spring, Texas, are expected to make their initial appearances today before U.S. Magistrate Judge Andrew M. Edison.

They are all charged with conspiracy to commit wire fraud and wire fraud.  The indictment also charges Aqeel with three counts of money laundering.

Also named in the Houston indictment is Siddiq Azeemuddin, 41, of Naperville, Illinois.  He also faces charges of conspiracy to commit wire fraud, wire fraud and money laundering.  Azeemuddin will appear today before U.S. Magistrate Judge Heather K. McShain of the Northern District of Illinois. 

“These defendants allegedly participated in a scheme to capitalize on the pandemic by filing at least 80 fraudulent PPP applications and enriching themselves by $16 million, spending it on luxury items such as a Porsche and Lamborghini automobiles,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division.  “The department and our law enforcement partners will continue to aggressively pursue those who would seek to illegally exploit the ongoing national emergency for their own benefit.”

“Some fraudsters create the most complicated schemes to steal money from the taxpayer.  Just imagine how productive they could be if they put their creativity and effort into noble and useful work,” said U.S. Attorney Ryan K. Patrick of the Southern District of Texas.  “With the great work of so many partner agencies, we will bring to justice those who steal from the treasury.”

“Greed has no place in SBA’s programs that are intended to provide assistance to the nation’s small businesses struggling with the pandemic challenges,” said Special Agent in Charge Sharon Johnson of the SBA Office of Inspector General (OIG) Central Region.  “OIG and its law enforcement partners will relentlessly pursue fraudsters and bring them to justice.  I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”

“These defendants are alleged to have defrauded a program intended to assist hardworking Americans who have been unfairly impacted as a result of this unprecedented and challenging health crisis,” said Special Agent in Charge Mark B. Dawson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Houston.  “HSI remains committed to working with our law enforcement partners to bring every asset to bear against anyone who seeks to take advantage of the pandemic to deliberately harm and deceive others for their own profit.”

“To support small and community banks, Federal Home Loan Banks can accept Paycheck Protection Program (PPP) loans as collateral when making loans to their members,” said Special Agent in Charge Catherine Huber of the Federal Housing Finance Agency (FHFA) OIG, Central Region. “The Office of Inspector General is proud to work with our partners in law enforcement to prevent, detect, and deter attempts to perpetrate fraud in the Federal Home Loan Bank System and steal the assistance intended for small business owners and employees under this important part of the CARES Act.”

“Today’s indictment describes significant abuse of public funds meant for struggling American businesses and families,” said Special Agent in Charge Laurie L. Younger of the Federal Deposit Insurance Corporation (FDIC) OIG.  “This alleged fraud represents substantial, egregious, and coordinated actions that undermine faith in our financial systems and programs enacted by Congress to help our nation recover from economic damage brought on by COVID-19.  We thank our law enforcement partners for their cooperation in this investigation.”

“The Treasury Inspector General for Tax Administration aggressively pursues those who endeavor to defraud programs afforded to the American people under the Coronavirus Aid, Relief, and Economic Security Act,” said J. Russell George, Treasury Inspector General for Tax Administration (TIGTA).  “We appreciate the efforts of the U.S. Department Justice and our law enforcement partners in this effort.”   

The indictment alleges all conspired to submit more than 80 fraudulent PPP loan applications by falsifying the number of employees and the average monthly payroll expenses of the applicant businesses. In support of these fraudulent loan applications, they conspired to submit, and did submit, fraudulent bank records and/or fake federal tax forms, according to the charges.  Some of the PPP loan applications were allegedly submitted on behalf of companies the defendants controlled.

Other loan applications were submitted on behalf of entities that third-parties allegedly owned, according to the indictment.  In exchange for these, several of the defendants received large kickbacks, according to the charges.

The indictment further alleges the defendants laundered a portion of the fraudulent proceeds by writing checks from companies that received PPP loans to fake employees.  Those that received checks included some of the defendants and their relatives, according to the charges.  The fake paychecks were then allegedly cashed at Fascare International Inc. dba Almeda Discount Store – a cash checking company Azeemuddin owned.

The indictment alleges that over 1,100 fake paychecks totaling more than $3 million in fraudulent PPP loan proceeds were cashed at Azeemuddin’s business.

Federal agents also executed 45 seizure warrants in conjunction with the case.  Some of items seized included a Porsche and a Lamborghini allegedly purchased with illegally obtained funds.

This is an ongoing investigation.  If the public has further information regarding this fraud, please contact the Department of Homeland Security at 1-866-DHS-2-ICE.

The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic.  One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP.  In April 2020, Congress authorized over $300 billion in additional PPP funding.

The PPP allows qualifying small-businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent.  PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities.  The PPP allows the interest and principal on the PPP loan to be forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses at least a certain percentage of the PPP loan proceeds on payroll expenses. 

A federal criminal indictment is merely an accusation.  A defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

This case was investigated by the SBA-OIG; HSI; FHFA-OIG; FDIC-OIG and TIGTA.  Trial Attorneys Louis Manzo and Della Sentilles of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Rodolfo Ramirez and Kristine Rollinson for the Southern District of Texas are prosecuting the case.

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

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.

LAREDO, Texas – A federal grand jury has returned an indictment against four area residents on charges of conspiracy to transport 61 undocumented aliens, announced U.S. Attorney Ryan K. Patrick.

Octavio Ramirez, 27, Juan Antonio Carranco Jr., 26, San Juana Guadalupe Juarez-Flores, 39, and Alina Rodriguez, 20, were all originally charged via criminal complaint. They are expected to appear for their arraignments on the charges in the indictment before a U.S. magistrate judge in the near future.   

Ramirez, Carranco and Rodriguez are U.S. citizens. Ramirez resided in Nuevo Laredo, Mexico, while other two resided in Laredo. Juarez-Flores is a Mexican national who resides in Laredo.

On Oct. 23, law enforcement set up surveillance at the intersection of North Smith Avenue and Green Street in Laredo, according to the complaint. Authorities allegedly witnessed Ramirez arrive at the location and either direct or escort aliens into the back of a nearby parked tractor-trailer multiple times.

Throughout the evening, Carranco, Juarez-Flores and Rodriguez all also arrived at the location, dropped off aliens in their personal vehicle and then left the scene, according to the charges.

Law enforcement ultimately apprehended a total of 61 undocumented aliens from various countries including Mexico, Guatemala and Honduras at the location.

If convicted, each faces up to 10 years in prison as well as a possible $250,000 fine.

Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with assistance from Customs and Border Protection, Border Patrol, FBI and the Webb County Constable’s Office. Assistant U.S. Attorney Brian Bajew is prosecuting the case.

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

HOUSTON – A 20-year-old Houstonian is set to appear in federal court on charges of aiding and abetting interference with commerce by robbery, announced U.S. Attorney Ryan K. Patrick.

A federal grand jury returned the indictment against Xzavier Ivar Shephard Nov. 5. He is expected to make his initial appearance via video before U.S. Magistrate Judge Andrew M. Edison at 2 p.m. today.

Originally charged by criminal complaint, Shephard was believed to be involved in at least four armed robberies of postal letter carriers since June.

The charges allege a young male would approach letter carriers while engaged in the performance of their duties. He would allegedly display a gun and/or threaten force and make demands for certain items. 

The charges allege robbers would retreat to a black Buick automobile with paper plates and flee the scene. The vehicle was registered to Shephard, according to the charges.

If convicted, Shephard faces up to 25 years in federal prison as well as a mandatory minimum of seven years that must be served consecutively to any other prison term imposed.

U.S. Postal Inspection Service conducted the investigation. Assistant U.S. Attorney Richard D. Hanes is prosecuting the case.

HOUSTON – Authorities are seeking other potential victims following the return of an indictment against a 25-year-old Arcola man on federal civil rights violations, announced U.S. Attorney Ryan K. Patrick. 

Hector Aaron Ruiz is a former officer with the Arcola Police Department but is no longer employed there.

Law enforcement took him into custody today. He is expected to make his initial appearance before U.S. Magistrate Judge Andrew M. Edison at 2 p.m. today.

The Houston federal grand jury indicted Ruiz Nov. 10. The charges allege he committed aggravated sexual abuse and kidnapping while serving in his official capacity as a law enforcement officer.

He is charged with two counts of depriving two separate victims of their right to bodily integrity. If convicted, he faces up to life in prison.

He also faces charges of two counts of carrying and using a firearm in a crime of violence as well as falsifying dashboard camera and body microphone recordings with the intent to obstruct the federal investigation. The latter charge carries a maximum 20-year-prisons sentence. If convicted of the firearms charges, he faces a mandatory minimum of five years that must be served consecutively  to any other prison term imposed.

The FBI and Texas Rangers are conducting the investigation. Assistant U.S. Attorneys Sharad S. Khandelwal and Sebastian Edwards are prosecuting the case.

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

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

McALLEN, Texas — Two men are set to appear in McAllen federal court on various charges related to the kidnapping and transportation of a minor across state lines, announced U.S. Attorney Ryan K. Patrick.  

A federal grand jury returned an indictment Nov. 5, against Brandon Galvez, 22, and Jose Serrano-Ramos, 23, both from Chalmette, Louisiana. Today, they are set to appear before U.S. Magistrate Judge Juan F. Alanis at 9:00 a.m.

Both are charged with transportation of a minor with intent to engage in criminal sexual activity. Galvez was also indicted on charges of kidnapping and coercion and enticement of a minor.

According to the charges, the investigation began after the mother of an 13-year-old girl reported she had left the family home in McAllen. Later, authorities allegedly encountered Galvez and Serrano-Ramos traveling north with her and noticed signs of possible abuse. Law enforcement then took the men into custody.

The investigation revealed Galvez had allegedly groomed the victim and traveled to Texas with the intent to transport her back to Chalmette. The charges allege Galvez paid Serrano-Ramos to transport him and the victim from McAllen to Louisiana. The charges allege Serrano-Ramos knew the victim had been sexually abused.

If convicted, both men potentially face up to life in federal prison.

The FBI and McAllen Police Department conducted the investigation with the assistance of Border Patrol.

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

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.

McALLEN, Texas – A 43-year-old South Texas man has been ordered to federal prison following his conviction of possession with intent to distribute a large amount of narcotics, announced U.S. Attorney Ryan K. Patrick.

Andres Garza pleaded guilty Sept. 2.

Today, U.S. District Judge Randy Crane ordered Garza to serve a 37-month sentence to be immediately followed by four years of supervised release. 

On March 23, Garza attempted to enter the United States via the Roma Port of Entry, driving a GMC Sierra truck. The vehicle was referred to secondary inspection where a K-9 alerted to the presence of concealed narcotics. Authorities ultimately found cocaine, weighing approximately 4.06 kilograms, taped inside Garza’s vehicle.

At the time of his plea, he admitting he knew there were narcotics in his vehicle and expected to be paid money for transporting them.

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

The Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorney Frances Blake Land prosecuted the case.

HOUSTON – A 65-year-old man has been ordered to federal prison after he admitted to conspiring to commit money laundering for his role in a complex email fraud scheme, announced U.S. Attorney Ryan K. Patrick.

Kenenty Kim aka Myung Kim, of Firecrest, Washington, pleaded guilty June 2.

Today, U.S. District Judge George C. Hanks handed Kim a 108-month sentence to be immediately followed by three years of supervised release. He was further ordered to pay restitution of $745,540.70. At the hearing, the court heard additional testimony from witnesses describing the harm Kim’s actions caused to them. One described not only the harm caused to his company financially, but also the toll on his employees, relationships with other victims and effects on his and his workers’ personal lives. An attorney described the effect that this scheme had on his practice and noted how much more damaging this crime is for a sole practitioner such as himself rather than a large-sized firm. 

In handing down the sentence, the court called Kim was a “fraudster” and a “con man.” Judge Hanks stated he did not believe Kim was sincere in his apology to the victims and only sorry for being caught. 

“Business email compromise (BEC) is a pervasive threat and one of the most financially damaging online crimes,” said FBI Special Agent in Charge Perrye K. Turner. “It exploits the fact that so many of us rely on email to conduct business—both personal and professional. In this case, one of the victim companies notified law enforcement and the FBI was able to unmask Kim and put an end to his years-long theft and fraud.”

Kim engaged in a business email compromise scheme using “spoof” email addresses which have similar names to legitimate email accounts he hacked. He would then use the addresses to create fictitious transactions or to hijack legitimate transactions to convince a victim company or individual to send funds to a bank account Kim actually controlled.   

For example, Kim created a spoof email account for a Pinehurst-based construction company. He then used that account to convince another company, based in Huntsville, to send over $200,000 to them. In reality, the account where they sent the funds was actually an account Kim controlled. He then took that money and moved it through several different bank accounts before placing it in an offshore account. 

Kim also engaged in the same conduct against the parent company of several major appliance companies. Kim created a spoof account of one of its vendors and used it to convince the company to send more than $300,000 to what it thought was a vendor. The account was actually set up for a different shell company Kim created with a similar name. Again, Kim took that money and eventually placed it in an offshore account.

The court had also heard about Kim’s numerous credit card fraud and other schemes. In some of those, Kim created a system to process credit card payments. He would then obtain a victim’s personal identifying information and charge over $10,000 on their credit cards. Kim also had 36 different credit cards in a variety of names, four different Social Security numbers, two dates of birth, 11 different overlapping addresses and a prior real estate license suspension for engaging in fraud.

Another spoof email scheme victimized a medical device company for which Kim used an address at a Washington hotel known as a “drug den.” In yet another scheme, Kim promised to make individuals a million dollars flipping houses when, in fact, the houses he listed were not even for sale. 

Kim acknowledged he gained over $700,000 from his various fraud schemes.

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

The FBI conducted the investigation. Assistant U.S. Attorney Adam Laurence Goldman prosecuted the case.

LAREDO, Texas – A 33-year-old Laredo man has been ordered to federal prison for conspiring to transport, and transporting, an undocumented alien in addition to conspiring and possessing with the intent to distribute cocaine, announced U.S. Attorney Ryan K. Patrick.

Alfredo Enrique Diaz pleaded guilty to the drug charges March 2, while he admitted his guilt for human smuggling Dec. 2, 2019.

Today, U.S. District Judge Diana Saldaña ordered Alfredo Enrique Diaz to serve a total of 120 months in federal prison to be followed by five years of supervised release.

On March 28, 2017, Diaz was caught while delivering luggage to a bus station in Laredo. The luggage had 14 bundles of cocaine weighing approximately 16 kilograms.

He was on bond in that case when drove to the Border Patrol (BP) Checkpoint north of Laredo Sept. 14. At that time, he had a woman who admitted to being in the United States illegally in his vehicle. Diaz expected to be paid $1500 for smuggling the woman to San Antonio.

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

The Drug Enforcement Administration conducted the investigation with the assistance of BP. Assistant U.S. Attorney April Ayers-Perez prosecuted the case.

GALVESTON, Texas - A 34-year-old resident of Sweeny has been ordered to federal prison after admitting he employed sexually-oriented websites advertising three minors as young as 15 for commercial sex, announced U.S. Attorney Ryan K. Patrick.

Joseph Church pleaded guilty Feb. 21 on the first day trial was set to begin.

Today, U.S. District Judge George C. Hanks Jr. handed Church a 400-month term of imprisonment. In handing down the sentence, the court noted Church’s conduct forever altered the lives of the women he victimized. Judge Hanks referenced how Church caused the victims to engage in commercial sex for his financial gain, mentioning he can’t prey on people in disadvantaged situations and then use those circumstances to make money. He further stated the court must make sure others do not follow in this ringleader’s footsteps.

After serving his sentence, he will be on supervised release for the rest of his life.  

“Church exploited, manipulated and controlled multiple child victims in our community and directed his co-conspirators to do the same,” said FBI Special Agent in Charge Perrye K. Turner. “The individuals who choose to prey on the youth and innocent are some of the most egregious criminals in society. We will continue to work tirelessly with our law enforcement partners to disrupt human trafficking organizations and bring justice on behalf of the innocent victims they prey on.”

“Thanks to the investigative efforts of Department of Public Safety (DPS) special agents, our supporting crime analysts and our FBI and local partners, Church and his co-conspirators can no longer use high schools to recruit young girls into human trafficking,” said Texas DPS Regional Director Jason Taylor. “The collaborative efforts among investigating agencies helped to ensure the defendants won’t be a threat to our communities and gives the victims an opportunity to begin the healing process.”

Co-defendant Angela Marks, 26, also of Sweeny, who was Church’s girlfriend and pregnant with his child at the time of the sex trafficking conspiracy had pleaded guilty to conspiracy to commit sex trafficking of minors and three counts of sex trafficking of minors. She was previously sentenced to 132 months in prison.

The young girls were induced into posing for pictures used in online advertisements for sex and engaged in commercial sex acts for money. Church and others collected all of the money the girls earned. Church transported victims to commercial sex dates and used motels to harbor the minors. Cell phone applications were used to monitor the victims and post online advertisements featuring the minors. Church and his co-defendants were aware the victims were under the age of 18 when they caused them to engage in commercial sex.  

Church, the leader of the group, is among 14 who have pleaded guilty for their respective roles in the sex trafficking conspiracy, gun charges, the posting of the commercial sex ads and attempt to cover-up their crimes.

Jamaal Crane, 28, Angleton, received a 180-month sentence, while Stephanie Walker, 38, Bay City; Eric Page, 22, Sherman; and Ronnie Beasley, 22, Rosharon, were sentenced to 135, 120 and 107 months, respectively. The court ordered Wharton residents Jamier Coleman, 23, and Lurkesha Baugh, 38, to serve respective terms of 105 and 27 months. Norris Moon, 26, Brazoria, and Tavius Whalon, 39, LaMarque, each will serve 60 months of imprisonment. Alisa Kimbler, 28, Freeport, was sentenced to serve 25 months, while Christopher Walton, 26, Brazoria, received a 21-month term of imprisonment.

The final defendant - William Franklin, 21, Wharton - pleaded guilty to conspiracy to commit sex  trafficking of two minor females in a separate, but related case. He received a sentence of 140 months in federal prison.

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

The FBI and DPS conducted the investigation with assistance of sheriff’s offices in Brazoria and Galveston Counties and police departments in Galveston, Sherman, Wharton, La Marque and the University of Texas Medical Branch. Assistant U.S. Attorneys Sherri Zack and Sebastian Edwards prosecuted the case.

HOUSTON ‐ A 24-year-old resident of Houston has been arrested on charges of mail theft, announced U.S. Attorney Ryan K. Patrick.

Daruin Anelby Rosario is set to make his initial appearance before U.S. Magistrate Judge Christina A. Bryan at 2 p.m. today.

On Nov. 5, local authorities conducted a traffic stop which led to a search of Rosario’s vehicle, according to the complaint. Inside, law enforcement allegedly found a large quantity of unopened and opened mail in the names of others.

A subsequent inventory of the mail pieces revealed letters, financial checks as well as an unopened mail-in ballot for the State of Washington, according to the charges. Law enforcement immediately forwarded the ballot to election authorities in Washington.

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

The U.S. Postal Inspection Service and Humble Police Department conducted the investigation. Assistant U.S. Attorneys Luis Batarse and Kate Suh are prosecuting the case.

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