Southern District of Texas

HOUSTON – The former owner of a child placement agency in Houston has been ordered to prison following her convictions on multiple counts in an adoption fraud scheme, announced U.S. Attorney Ryan K. Patrick along with Special Agent in Charge Perrye K. Turner of the FBI.

The Houston federal jury convicted Simone Swenson, 46, on two counts of mail fraud following a five-day trial Sept. 29, 2019.

Today, Chief U.S. District Judge Lee H. Rosenthal handed Swenson a 24-month sentence to be immediately followed by three years of supervised release. At the hearing, the court heard from eight of 2o identified victims as well as an FBI agent who described Swenson’s common scheme and plans to defraud numerous adoptive families. In handing down the sentence, the court noted Swenson lied, concealed information and made false representations to vulnerable adoptive families and victims.  

"Simone Swenson took advantage of hopeful adoptive parents who have already been through a difficult journey,” said Turner. “She used these couples as her personal piggy bank and took advantage of them financially and emotionally. This was a seven year-long investigation for FBI Houston that focused not only on a 'poorly-run business', but on an individual whose greed and deceit forever scarred individuals who simply wanted to form a family."

Swenson owned and operated Sans Pareil Center for Children and Family Services LLC which was licensed to operate as both a foster care and child adoption agency. Swenson is no longer operating Sans Pareil following suspension of her license.

At trial, the jury heard Sans Pareil catered to adoptive families that desired to participate in domestic private (non-CPS) adoption program. From on or about January 2013 to on or about January 2014, Swenson defrauded numerous prospective adoptive families with the same birth mother, a scheme known as double matching. In addition to double matching, she obtained money and property by means or materially false and fraudulent pretenses, representations and promises.

Testimony revealed Swenson double matched birth mothers who expected to have only one baby to multiple adoptive families. Once prospective family members wired money and/or mailed it into her accounts, Swenson would find a way, through lies and misrepresentations, to get out of the agreements. Such falsehoods included blaming the birthmother for changing her mind, adoptive families backing out of the match and/or blaming adoptive families for lack of funds in some instances.

The jury heard from six adoptive families who testified Swenson would contact prospective families about birth mothers but would not proceed until agency fees and expenses were paid up front. Swenson would then make promises for a successful adoption. In reliance upon those false representations, prospective adoptive families hired attorneys and other adoption agencies, purchased airline tickets, booked hotel rooms, prepared and purchased items for the expected child’s nursery and transportation and incurred other expenses related to the prospective adoption.

Swenson was always available and responsive to prospective adoptive families prior to receiving agency fees. However, once she received monies from those people, she would become unavailable and would not return phone calls for long periods of time, if at all. When she did have communication with them, she would be brief, inconsiderate and provide vague information regarding the birth mothers and their delivery status.

In addition, Swenson rarely provided invoices or receipts to the adoptive families for their paid fees and expenses. When adoptive families would ask Swenson for proof of payment, she did not respond unless there was money to be collected.

Swenson charged each family member approximately $20,000 to $30,000 each.

Swenson attempted to convince the jury that she was negligent and ran a poor business but did not intentionally defraud the adoptive families. 

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

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

HOUSTON – A 38-year-old Houston woman has been taken into custody on allegations of embezzling thousands from her previous employer, announced U.S. Attorney Ryan K. Patrick.  

A federal grand jury returned a one-count indictment against Claudia Wells Sept. 17, charging her with embezzlement from a federally-insured credit union. She is expected to make her initial appearance before U.S. Magistrate Judge Christina Bryan at 2 p.m. today.  

According to the indictment, from May 28, 2019 to June 6, 2019, Wells embezzled approximately $43,000 from an account at the credit union while she was employed there. 

The FBI conducted the investigation. Assistant U.S. Attorney Belinda Beek 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 24-year-old Richmond resident has surrendered to federal authorities following the return of an indictment alleging she delayed and/or destroyed U.S. mail, announced U.S. Attorney Ryan Patrick.

A Houston federal grand jury returned the indictment Sept. 15 against Lovely Eliabe which was unsealed today. She is expected to make an initial appearance before U.S. Magistrate Christina Bryan at 2 p.m.

Eliabe was allegedly employed as a rural carrier associate at the U.S. Postal Service (USPS).

The indictment alleges she destroyed and delayed mail matter intended to be delivered through the USPS on June 26. As a USPS employee, Eliabe allegedly violated her obligation to deliver all of the mail matter entrusted to her.

She is no longer a USPS employee.

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

USPS – Office of Inspector General conducted the investigation. Assistant U.S. Attorney Luis Batarse 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 45-year-old Southwest Houston man has been ordered to federal prison following his conviction of sexual exploitation of a child otherwise known as production of child pornography, announced U.S. Attorney Ryan K. Patrick

Reginald Desean Love aka Tru pleaded guilty Jan. 28, admitting he had recorded a video of a minor female performing oral sex on him.

Today, U.S. District Judge Sim Lake ordered Love to serve 300 months in federal prison. In handing down the sentence, the court referred to his history of violence against women as reflected in his criminal record. Following his prison sentence, Love will serve the rest of his life on supervised release during which time the court can impose a number of special conditions designed to protect children and prohibit the use of the internet. He is expected again to register as a sex offender.

The Texas Department of Public Safety (DPS) works tirelessly to protect our youth from those who seek to exploit them,” said DPS Regional Director Jason Taylor. “In this case, DPS special agents—along with our partnership with the United States Attorney’s Office through Project Safe Childhood—were integral in ensuring this repeat offender no longer harmed the children he was preying upon for financial gain.”

In September 2017, a 15-year-old girl contacted authorities and gave them a cell phone that contained the video Love made depicting the sex act. Law enforcement conducted a search on two rooms at a local Motel 6 where they discovered another juvenile girl performing oral sex on an adult male.

Love was previously convicted in 2010 of felony indecency with a 14-year-old girl. As part of his sentence, he was ordered to register as a sex offender.  

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

DPS conducted the investigation.

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

LAREDO, Texas – A federal grand jury has returned an indictment against a 50-year-old Laredoan for charges related to the smuggling of an undocumented alien and fleeing from an immigration checkpoint, announced U.S. Attorney Ryan K. Patrick.

Arturo Trevino is charged with one count of conspiracy to transport an undocumented alien and one count of high-speed flight from an immigration checkpoint. He is expected to appear before a U.S. magistrate judge in Laredo in the near future.

According to the criminal complaint originally filed in the case, Trevino drove his pickup truck to the Border Patrol (BP) checkpoint on Interstate Highway 35 north of Laredo on Sept. 3. Soon after, a K-9 allegedly alerted to the presence of concealed persons, according to the charges.

The complaint alleges authorities referred him to secondary inspection. However, he allegedly ignored their instruction, driving past it and back onto the interstate at a high rate of speed.

Authorities pursued the vehicle for nearly two miles as Trevino drove at speeds in excess of 75 mph, according to the charges. He allegedly drove his vehicle across the median and access road onto the grass, eventually crashing into an electric pole.

Authorities conducted a search of his pickup truck and allegedly discovered an undocumented alien from Mexico behind the driver’s seat.

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

BP conducted the investigation. 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.

CORPUS CHRISTI, Texas – A 68-year-old aquaculture company owner has been ordered to federal prison following his conviction of sex trafficking of a minor female, announced U.S. Attorney Ryan K. Patrick.

A Corpus Christi federal jury deliberated for one day before convicting David Keith Wills, Oct. 8, 2019, following a 10-day trial. Wills, previously from Rockport and South Padre Island, is the founder and part owner of Global Blue Technologies. The jury convicted him on multiple counts of sex trafficking and enticement of a child as well as one count of conspiring to obstruct justice.

Today, U.S. District Judge Nelva Gonzales Ramos, who presided over the trial, ordered Wills to serve a life sentence. At the hearing, the court heard a statement from the minor victim detailing how Wills destroyed her childhood and caused her lifelong trauma. Judge Ramos further ordered Wills to pay $172,000 restitution to the victim and $85,000 in fines. 

“For three years, this individual preyed on the innocence of our most vulnerable population relying on economic and psychological manipulation to control and silence his victim,” said Mark Dawson, special agent in charge of Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Houston. “With today's sentencing we have removed this predator from the community and sent a resounding message that we are committed to working with our law enforcement partners to aggressively investigate and prosecute anyone who seeks to exploit our nation's children.”

At trial, the jury heard that from 2012 to 2015, Willis conspired with his mistress Maria Candelaria Losoya to traffic the minor female for sex beginning when she was just 10 years old. Losoya and Wills used their cell phones to arrange meetings at several different locations where Wills would sexually assault the girl. These included Wills and Losoya’s respective residences as well as hotels and motels in the greater Corpus Christi area. 

Wills sexually assaulted the minor female multiple times until she reported it in April 2015.

During this time, Wills promised to pay the victim’s college tuition if he was allowed to sexually assault the young girl. He also reimbursed Losoya for gifts to the victim and expenditures she would otherwise not have been able to afford. These included an iPad, Bose headphones, flatscreen TV, Apple laptop, trampoline, swimming pool and a school trip to Washington D.C. 

After the victim reported the abuse, Wills conspired with a friend to remove a laptop from his home, wanting to destroy it to prevent law enforcement from seizing and reviewing it.

Several witnesses testified at the trial including the minor victim, forensic interviewer, the nurse who first examined her, several state and federal law enforcement officers and an expert witness. An eyewitness also described seeing the victim at a Portland hotel where Wills and Losoya met in March 2014.

The jury also heard from multiple defense witnesses attesting to his character and successes, while attempting to contradict testimony Losoya and the victim gave.

HSI conducted the investigation with assistance of Brownsville Police Department and Texas Rangers.

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

HOUSTON – A total of three Colombian nationals associated with the National Liberation Army (Ejército de Liberación Nacional aka ELN), a paramilitary group designated as a foreign terrorist organization, have been taken into Colombian custody at the request of the United States on charges alleging a 20-year international drug conspiracy.

“When my predecessor visited Colombia last year, he said to approximately 100 Colombian National police officers that he was directing all U.S. Department of Justice (DOJ) components stationed at the U.S. Embassy, to include FBI, Drug Enforcement Administration (DEA) and our DOJ Attaches, to make cases against ELN a top priority,” said Attorney General William Barr. “These enforcement efforts against six ELN members including federal criminal charges against ELN leader Wilver Villegas-Palomino reaffirms our commitment in dismantling and disrupting this narco-terrorist group. The United States and Colombia have a shared mission of combatting narco-trafficking and narco-terrorism and the long-standing cooperation and teamwork between U.S. and Colombian law enforcement is stronger in addressing transnational crime and weakening foreign terrorist organizations.”

“Colombia is an excellent law enforcement partner,” said U.S. Attorney Ryan K. Patrick. “They made a commitment to work with the United States combatting ELN’s narco-terrorism. With major cities acting as drug trafficking hubs, the Southern District of Texas is uniquely situated in continuing our prosecution of these cases and working with our Colombian colleagues.”

Colombian authorities arrested Yamit Picon-Rodriguez aka Choncha, 36, Jose Gabriel Alvarez-Ortiz aka Alex, 26, and Henry Trigos-Celon aka Moncho Picada, 43, based on a provisional arrest request of the United States.

Suspected ELN leader Villegas-Palomino aka Carlos El Puerco, 38, is also charged and considered a fugitive as are Jaime Miguel Picon-Rodriguez aka Chencho and Jairo, 38, and Diomedes Barbosa-Montaño aka El Burro, 38. A warrant remains outstanding for their arrests. Anyone with information about their whereabouts is asked to contact the FBI at 1-800-CALL-FBI or submit tips online at tips.fbi.gov.

A federal grand jury in Houston returned the three-count indictment Feb. 12. All six defendants are charged with distribution of a controlled substance, knowing or intending to provide anything of pecuniary value to a person or organization that engages in terrorism or terrorist activity (narco-terrorism), participating in an international cocaine distribution conspiracy and international cocaine distribution.

According to the indictment, Villegas-Palomino and his co-defendants were involved in an ongoing 20-year conspiracy to distribute cocaine from Colombia to the United States knowing or intending to provide pecuniary support to the ELN.

In early 2019, Villegas-Palomino, Picon-Rodriguez, Trigos-Celon, Barbosa-Montaño and Alvarez-Ortiz also allegedly participated in distributing approximately 30 kilograms of cocaine in Colombia having reasonable cause to believe it would be imported into the United States.

“The success of Operation Catatumbo Lightning was a direct result of the outstanding collaboration between the FBI and many of our law enforcement and military partners both here in the United States and in Colombia,” said FBI Director Christopher Wray. “These arrests should serve as a warning that the FBI will relentlessly target and disrupt any narco-terrorist activity that threatens the health and safety of the American people and our international community.”

“As alleged, for decades, ELN produced and exported tons of cocaine to the U.S., using communities in America to fund their terrorist activities,” said DEA Acting Administrator Timothy J. Shea. “These enforcement actions have dealt a major blow to the ELN and are a true testament to the power of partnerships. DEA remains dedicated to our partners around the globe in the shared mission of bringing narco-terrorists to justice.”

On Oct. 8, 1997, the State Department officially designated ELN as a foreign terrorist organization. It continues to operate as one of the largest narco-terrorism organizations in the world. The U.S. Department of State through its Narcotics Rewards Program, is offering up to a $5 million reward for information leading to the arrest and/or conviction of Villegas-Palomino.

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

OCDETF brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. Its principal mission is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.

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

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

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HOUSTON - A local resident has admitted she defrauded the IRS of more than $1.5 million, announced U.S. Attorney Ryan K. Patrick along with Special Agent in Charge D. Richard Goss of IRS - Criminal Investigation (CI).

According to the plea agreement filed in the record of the case, Lee Williams pleaded guilty today to filing a false amended joint 2016 U.S. individual income tax return which resulted in an intended tax loss of approximately $800,000.

As part of the agreement, she further acknowledged the relevant conduct for sentencing purposes is over $1.5 million. She has agreed to pay restitution in the amount of $1,975,734.58.

U.S. District Judge Lynn N. Hughes accepted the plea today and set sentencing for Dec. 21. At that time, Williams faces up to three years in federal prison and a possible $250,000 maximum fine.

She was permitted to remain on bond pending that hearing.

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

McALLEN, Texas – A 44-year-old Border Patrol (BP) supervisor is set to appear in federal court on allegations she deprived several constitutional rights of a La Joya woman, announced U.S. Attorney Ryan K. Patrick.

Adriana Gandarilla is expected to make her initial appearance before U.S. Magistrate Judge J. Scott Hacker Friday, Sept. 18.

She is a Senior BP agent with 19 years of experience.

On May 6, 2018, a La Joya woman began recording law enforcement activities taking place at her residence, according to the charges. At that time, Gandarilla allegedly commanded the woman to stop recording with her cell phone.

According to the allegations, Gandarilla physically forced the woman to delete the recording by grabbing her by her neck and arms. Gandarilla allegedly pushed her against the front outside wall of the woman’s residence.

If convicted of the civil rights charge, Gandarilla faces up to one year in federal prison and a possible $100,000 maximum fine.  

Customs and Border Protection - Office of Professional Responsibility conducted the investigation. Assistant U.S. Attorney Sebastian Edwards 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 former Harris County judge has admitted to embezzling funds received during her re-election campaigns, announced U.S. Attorney Ryan K. Patrick and Special Agent in Charge Perrye K. Turner of the FBI Houston Division.

Alexandra Smoots-Thomas, 44, Houston, was the presiding judge for the 164th District Court for the State of Texas and had jurisdiction over Texas civil cases located within Harris County. She first ran for judicial office in 2008 and  successfully ran for re-election in 2012 and 2016. Several individuals and political action committees had made substantial donations to those re-election campaigns.  

Today, she pleaded guilty to one count of wire fraud, admitting she embezzled some of those funds. She repeatedly solicited contributions on the premise the money would be used to help facilitate her re-election campaigns. However, Smoots-Thomas used the campaign funds for non-campaign expenses to include monthly home mortgage payments, private school tuition payments and personal luxury items. She concealed this spending from both her campaign treasurer and the Texas Ethics Commission by filing false campaign finance reports.

Following the plea today, U.S. District Judge Lynn H. Hughes allowed Smoots-Thomas to immediately proceed to sentencing. The court heard arguments from the government citing how Smoots-Thomas abused her position and asked for a fair sentence within the U.S. Sentencing Guidelines. Judge Hughes permitted her release following her time already served in custody. Restitution will be determined at a hearing set for Oct. 26.

The FBI conducted the investigation. Assistant U.S. Attorneys Ralph Imperato and John Pearson prosecuted the case.

HOUSTON - A Texas woman has been taken into custody on allegations she fraudulently obtained more than $1.9 million in Paycheck Protection Program (PPP) loans, announced U.S. Attorney Ryan K. Patrick and Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division.

Lola Shalewa Barbara Kasali, 22, Houston, is charged with making false statements to a financial institution, wire fraud, bank fraud and engaging in unlawful monetary transactions. She is expected to make her initial appearance before U.S. Magistrate Judge Christina Bryan at 2 p.m. tomorrow.

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

The criminal complaint, unsealed today, alleges Kasali submitted at least two fraudulent PPP loan applications - one on behalf of an entity called Lola’s Level and the other in the name of Charm Hair Extensions. Kasali allegedly received more than $1.9 million in PPP loan funds following the approval of the Lola’s Level application. The charges allege that after receiving the funds, Kasali transferred the money into four additional bank accounts. Authorities were later able to seize the funds, according to the charges.

The loan applications allegedly asserted both Charm Hair Extensions and Lola’s Level had numerous employees and significant payroll expenses. According to the charges, however, neither entity has employees nor pays wages consistent with the amounts claimed in the loan applications.

The CARES Act is a federal law enacted March 29. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from 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 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. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.   

The Federal Housing Finance Agency Office of the Inspector General (OIG), SBA-OIG and U.S. Postal Inspection Service - Houston Division conducted the investigation. Trial Attorneys Timothy A. Duree and Matthew Grisier of the Criminal Division’s Money Laundering and Asset Recovery Section are prosecuting the case with the assistance of Assistant U.S. Attorney James McAlister for the Southern District of Texas.

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

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud 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 Texas woman has been taken into custody on allegations she fraudulently obtained more than $1.9 million in Paycheck Protection Program (PPP) loans, 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.   

Lola Shalewa Barbara Kasali, 22, of Houston, is charged with making false statements to a financial institution, wire fraud, bank fraud and engaging in unlawful monetary transactions. She is expected to make her initial appearance before U.S. Magistrate Judge Christina Bryan in Houston at 2:00 p.m. CDT on Wednesday, Sept. 16.

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

The criminal complaint, unsealed today, alleges Kasali submitted at least two fraudulent PPP loan applications - one on behalf of an entity called Lola’s Level and the other in the name of Charm Hair Extensions. Kasali allegedly received more than $1.9 million in PPP loan funds following the approval of the Lola’s Level application. The charges allege that after receiving the funds, Kasali transferred the money into four additional bank accounts. Authorities were later able to seize the funds, according to the charges.

The loan applications allegedly asserted both Charm Hair Extensions and Lola’s Level had numerous employees and significant payroll expenses. According to the charges, however, neither entity has employees nor pays wages consistent with the amounts claimed in the loan applications.

The CARES Act is a federal law enacted March 29. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from 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 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. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.   

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

The Federal Housing Finance Agency Office of the Inspector General (OIG), SBA-OIG and U.S. Postal Inspection Service - Houston Division conducted the investigation. Trial Attorneys Timothy A. Duree of the Criminal Division’s Fraud Section and Matthew Grisier of the Criminal Division’s Money Laundering and Asset Recovery Section are prosecuting the case with the assistance of Assistant U.S. Attorney James McAlister for the Southern District of Texas.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud 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.

McALLEN, Texas - Two men have been sentenced to federal prison following their convictions of being previously convicted felons in possession of a firearm, announced U.S. Attorney Ryan K. Patrick. 

Benny Guadalupe Garcia, 34, Weslaco, and Rodolfo Rodriguez Jr., 26, Edinburg, pleaded guilty Jan. 30, and Jan. 21, respectively.

Today, U.S. District Judge Randy Crane sentenced Garcia to 30 months in prison, while Rodriguez received a 70-month term. Both will also be ordered to serve three years of supervised release following their sentences. At the hearing, the court noted the serious nature of the offense given both men’s criminal histories. Specifically, Rodriguez has previous convictions for aggravated robbery stemming from two incidents in downtown McAllen as well as five vehicle burglary convictions, among others. Garcia was previously convicted of two burglaries of a habitation as well as multiple assaults and possession of controlled substances. In handing down the sentence, Judge Crane noted both men’s involvement in gang activity and the serious nature of possessing a firearm with an obliterated serial number.

“Removing guns from the hands of violent, multi-convicted felons remains the focus of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF),” said ATF Special Agent in Charge Fred Milanowski.

On Nov. 26, 2019, law enforcement conducting patrol near Edinburg had pulled a vehicle over for a traffic violation. Garcia was driving with Rodriguez as the front passenger. Upon searching the vehicle, authorities found a .45 caliber semi-automatic handgun with an obliterated serial number and hollow-tip ammunition in the console. 

As both men have previous felony convictions, they are prohibited by federal law of possessing firearms or ammunition.

They ultimately admitted to being felons in possession of the firearm found in the vehicle.

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

ATF conducted the investigation with the assistance of the Edinburg Police Department. Assistant U.S. Attorney Matthew Redavid prosecuted the case. 

The Justice Department reached an agreement today with Conn Credit I, LP, Conn Appliances, Inc. and Conn’s, Inc. (Conn’s), to resolve allegations that they violated the Servicemembers Civil Relief Act (SCRA) by charging at least 184 servicemembers excess interest on their purchases. 

Conn’s, a furniture, mattress, electronics, and appliance store chain headquartered in the Woodlands, Texas, has retail stores in over 130 locations in at least 14 states. This is the Justice Department’s first SCRA case against a consumer retail store.

The SCRA provides financial and housing protections and benefits to military members as they enter active duty. One of the SCRA’s benefits requires creditors to reduce the interest rate on financial obligations, including retail installment contracts, to six percent if certain conditions are met. Under the agreement, Conn’s must hire an independent consultant, who will determine if any previously unidentified servicemembers were overcharged interest. Conn’s must refund all overcharged interest that it has not already refunded and pay an additional $500 to each affected servicemember. Conn’s must also make a $50,000 payment to the United States.

The agreement, which is subject to court approval, resolves a suit filed today by the Department of Justice in the U.S. District Court for the Southern District of Texas.

“Servicemembers sacrifice their liberty and at times their lives to protect the United States and our people, and the Department of Justice is determined to ensure that they receive all the benefits and rights that Congress provided to them under the Servicemembers Civil Relief Act,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “We applaud Conn’s for cooperating with our investigation and conducting a self-audit to determine the scope of the problem, for working with the department to comply with the Servicemembers Civil Relief Act, and for agreeing to compensate all the affected servicemembers.” 

“It is an honor to protect the legal rights of the members of our armed forces who routinely sacrifice so much for our country,” said U.S. Attorney Ryan K. Patrick of the Southern District of Texas. “The U.S. Attorney’s Office is committed to enforcing the SCRA and will continue to hold companies who violate it accountable.”

The department launched its investigation after receiving a referral from the U.S. Army Staff Judge Advocate at the Oklahoma National Guard Joint Force Headquarters. Upon receiving notice of the department’s investigation, Conn’s conducted a self-audit and found that, between March 2014 and May 2019, in 184 of the 322 accounts where servicemembers had requested the six percent interest rate cap, Conn’s had not granted the full benefit as required by the SCRA. Conn’s voluntarily disclosed these findings to the department and sent remediation checks and credited the accounts of the identified servicemembers.

The department’s enforcement of the SCRA is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section and U.S. Attorney’s Offices throughout the country. Since 2011, the department has obtained over $474 million in monetary relief for over 120,000 servicemembers through its enforcement of the SCRA. For more information about the department’s SCRA enforcement efforts, please visit www.servicemembers.gov.

Servicemembers and their dependents who believe that their rights under SCRA have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations may be found at legalassistance.law.af.mil/.

HOUSTON – With the sentencing of three Houston men today, all four convicted for their roles in the robberies/attempted robberies of six local banks are now headed to federal prison, announced U.S. Attorney Ryan K. Patrick.

Gregory Babers, 30, Julien Francis, 29, and Jarrick Hoskins, 31, had previously pleaded guilty. A federal jury deliberated for two hours before convicting Eric Beverly, 31, Feb. 26, following a less than two-day trial. He was convicted of five counts of aiding and abetting the robbery of local banks and aiding and abetting the attempted robbery of another as well as six counts of aiding and abetting the brandishing of a firearm during the commission of the robberies.

Today, U.S. District Lynn N. Hughes imposed total sentences of 84, 51 and 100 months for Babers, Francis and Hoskins, respectively, representing terms for the underlying robberies and additional penalties for the respective firearms convictions. Last week, the court ordered Beverly to serve 42 years for the firearms charges in addition to five years for the robberies and attempted robberies. The sentences are all to be served consecutively. The total 47-year-sentence will be immediately followed by three years of supervised release. At Beverly’s hearing, the court heard additional evidence that he was a leader/organizer of the armed robbery crew. In handing down the sentences, the court noted teach member of the robbery crew was responsible for the actions of the others.

“For almost a year, these individuals endangered Houston citizens by committing over 20 bank robberies in our area,” said Special Agent in Charge Perrye K. Turner of the FBI. “Their arrests are a testament to the teamwork displayed by the FBI Violent Crimes Task Force. As we continue protecting our citizens, the FBI hopes these sentencings will bring closure for the victims, as well as an opportunity for the defendants to pay their debt to the community.”

During trial, the jury heard Beverly and other members of his crew committed six armed bank robberies and had robbed three of the banks more than once. The take-over style robberies occurred between Aug. 25, 2014, and May 2, 2015. During the crimes, two or more men wore masks and entered the banks while at least one of them brandished a firearm and put people’s lives in jeopardy. While in the banks, one or more of the men demanded money from employees at gunpoint, jumped over teller counters and grabbed money from teller drawers.

Jurors also heard testimony that Beverly participated in an attempted robbery. He did not get any money due to the bank’s bullet-proof bandit barriers.    

At trial, the jury saw videos and photos from each of the robberies and heard testimony from five bank tellers explaining how the armed robbers wore masks and gloves. The jury also considered phone records showing how the robbers used their cell phones to communicate with each other.

At the time of their pleas, Babers, Francis and Hoskins admitted to their respective roles as lookouts, drivers and inside-men.

The FBI Violent Crime Task Force, Harris County Sheriff’s Office and Houston Police Department conducted the investigation. Assistant U.S. Attorneys Carrie Wirsing and Jill Stotts are prosecuting the case.

LAREDO, Texas – A 47-year-old Houston man has entered a guilty plea to conspiracy to possess with intent to distribute 132 kilograms of marijuana, announced U.S. Attorney Ryan K. Patrick.

Christopher Sedrick Brown admitted that on April 20 he arrived at the Border Patrol checkpoint on Interstate Highway 35 north of Laredo. He was driving a tan-colored semi-tractor. Soon after, a K-9 alerted to the presence of narcotics or hidden persons inside the vehicle.

Authorities sent him to secondary inspection, but Brown ignored their instruction. Instead, he accelerated and absconded from the checkpoint at a high rate of speed.

Law enforcement pursued the vehicle as Brown drove erratically at speeds reaching 94 mph. Brown made his way into La Salle County along mile marker 59, but eventually lost control of the vehicle and crashed into thick brush.

He attempted to flee on foot. However, authorities apprehended him on the Interstate Highway 35 frontage road.

Authorities conducted a search of the abandoned trailer and discovered eight bundles of marijuana wrapped in cellophane. The drugs weighed 132 kilograms (291.6 pounds) with an estimated street value of approximately $90,000.

Brown has been and will remain in in custody pending his sentencing, which will be set at a later date before U.S. District Judge Diana Saldana. At that time, Brown faces between a minimum of five and up to 40 years in federal prison.

Customs and Border Protection conducted the investigation with assistance of the Texas Department of Public Safety. Assistant U.S. Attorney Francisco J. Rodriguez is prosecuting the case.

MCALLEN, Texas - A 31-year-old former officer and resident of Maurepas, Louisiana, has been arrested in McAllen for possession with intent to distribute more than five kilograms of cocaine, announced U.S. Attorney Ryan K. Patrick and Special Agent in Charge Shane Folden of Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) - San Antonio.

Johnny Jacob Domingue is set to make his initial appearance before U.S. Magistrate Judge Juan F. Alanis in McAllen at 9 a.m. today. Authorities had taken Domingue into custody yesterday afternoon upon the filing of a criminal complaint.

According to the charges, Domingue had been a federal task force officer for the Drug Enforcement Administration in Louisiana.

The complaint alleges that beginning in late July and continuing through September 2020, Domingue negotiated the purchase of four kilograms of cocaine, agreeing to pay approximately $100,000. He also negotiated the transportation of another four kilograms of cocaine, according to the charges.    

On Sept. 9, Domingue allegedly traveled to Edinburg and picked up a vehicle loaded with eight kilograms of cocaine concealed inside a secret compartment. The complaint further alleges Domingue intended to transport the vehicle to Houston and on to Louisiana to further distribute the cocaine to buyers.

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

HSI is leading the Organized Crime Drug Enforcement Task Force (OCDETF) investigation dubbed Operation Blue Shame which has resulted in the arrest and prosecution of 20 individuals including seven law enforcement officers. Police departments in McAllen, Mission, Alamo and Alton; Hidalgo County Sheriff’s Office, Texas Attorney General’s Office and Customs and Border Protection’s Air and Marine units have all provided assistance.

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

This case is the result of the ongoing OCDETF efforts – a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal OCDETF mission is to identify, disrupt, dismantle and prosecute high level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.

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

CORPUS CHRISTI, Texas – A 30-year-old Coastal Bend resident has been ordered to federal prison following his conviction of trafficking meth, announced U.S. Attorney Ryan K. Patrick.

Edward Andrew Nesmith pleaded guilty June 16.

Today, U.S. District Judge Nelva Gonzales Ramos ordered Nesmith to serve a 92-month sentence to be immediately followed by four years of supervised release. At the hearing, the court heard additional information including evidence detailing the lack of deterrence from at least a decade of Nesmith’s previous criminal episodes, including assault family violence, forgery and theft. In handing down the sentence, Judge Ramos noted Nesmith’s life of crime and drug use while mentioning his three prior felony drug convictions.

On or about Nov. 2 through Nov. 13, 2018, Nesmith was involved in a conspiracy to possess with intent to distribute meth along with and Corina Perez, 47, Corpus Christi. They negotiated terms of the sale or distributed the meth at a local shopping center and bus terminal in Corpus Christi.

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

On May 19, Judge Ramos sentenced Perez to 24 months in federal prison followed by four years of supervised release.

The Drug Enforcement Administration and Corpus Christi Police Department conducted the investigation. Assistant U.S. Attorney Reid Manning prosecuted the case.

CORPUS CHRISTI, Texas – A 34-year-old Orange Grove man has entered a guilty plea to receiving child pornography, announced U.S. Attorney Ryan K. Patrick.

Authorities had linked Cameron Michael Pittman to an IP address that was sharing child pornography.

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

Law enforcement conducted a search, at which time they seized multiple electronic devices from Pittman’s residence. A forensic examination later revealed images and videos of child pornography. Today, Pittman admitted to receiving the images. The large majority of the images and videos located on Pittman’s devices depicted the sexual exploitation of children under the age of 10.

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

Sentencing has been set before U.S. District Judge Drew B. Tipton Dec. 11. At that time, Pittman faces a mandatory minimum of 15 years and up to 40 as well as a possible $250,000 maximum fine.

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

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

LAREDO, Texas – A federal grand jury has returned an indictment against a 36-year-old Mexican citizen on four counts related to the smuggling of 1000 kilograms or more of marijuana, announced U.S. Attorney Ryan K. Patrick.

Jose Campos-Rebulloso will appear before a U.S. magistrate judge in Laredo in the near future.

According to the criminal complaint originally filed in the case, on July 29, law enforcement located a tractor-trailer at a warehouse in Laredo. They conducted a search and soon discovered 232 bundles of marijuana that had been wrapped in plastic with a combined weight of approximately 2,502 kilograms, according to the charges.

Campos-Rebulloso had allegedly drove the tractor-trailer along with the marijuana into the United States from Mexico.

If convicted, he faces a minimum of 10 years and up to life in federal prison.

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

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

LAREDO, Texas – A 51-year-old Laredoan has admitted to wire fraud and extortion under color of official right, announced U.S. Attorney Ryan K. Patrick. 

Rito Salomon Palacios, 51, masqueraded at varying times as an officer or employee of Customs and Border Protection, an immigration officer or another  federal officer or employee. At the plea today, the court also heard he delivered receipts in a document bearing the seal of the Department of Transportation.

Palacios defrauded and extorted members of the public who were not citizens or nationals of the United States. He took money or property by false and fraudulent pretenses, representations and promises to deliver immigration visas, permits or residency in the United States. As part of the scheme, Palacios utilized the internet to set appointments for his victims.

Palacios has admitted as part of the plea that he demanded and obtained more than $72,000 from the fraud and extortion scheme.

U.S. District Judge Diana Saldana will impose sentencing at a date to be set at a later time. At that time, Palacios faces up to 20 years in federal prison and a possible $250,000 maximum fine. He was permitted to remain on bond pending that hearing.

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

CORPUS CHRISTI, Texas – A federal grand jury has returned an indictment against a 32-year-old man who resided in Austin for assaulting, resisting or impeding officers and unlawful transportation of undocumented aliens, announced U.S. Attorney Ryan K. Patrick.

Brenli Lescaille-Durand is charged with two counts of unlawful transportation of undocumented aliens by means of a motor vehicle and two counts of assaulting, resisting or impeding certain officers or employees.

On Aug. 18, Lescaille-Durand allegedly drove to an area along U.S. Highway 281 and picked up multiple individuals from Mexico and Honduras illegally present in the United States. The charges allege he then drove just north of the Falfurrias Border Patrol (BP) checkpoint. Law enforcement attempted to pull him over but he, along with five occupants, fled the vehicle into the brush, according to the charges.

Authorities were able to ultimately apprehend Lescaille-Durand, but he had allegedly assaulted two of them while resisting arrest. The charges allege he punched, kicked and struck them with an object while attempting to flee.

If convicted, he faces a maximum of five years in federal prison for alien transporting and up to eight years for the alleged. Each count also carries a possible $250,000 fine.

BP and FBI conducted the investigation. Assistant U.S. Attorney Christopher Marin 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.

CORPUS CHRISTI – A 40-year-old Texan has pleaded guilty to receipt of child pornography, announced U.S. Attorney Ryan K. Patrick.

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

They conducted a search and seized numerous digital devices. Forensic analysis ultimately revealed approximately 200 images of children engaged in sexually explicit conduct, some of which included children under the age of 5.

Today, he admitted to receiving the pornographic images.

Sentencing has been set for Dec. 11 before U.S. District Judge David S. Morales. At that time, Rosales faces up to 20 years in federal prison and a possible $250,000 maximum fine. He was permitted to remain on bond pending that hearing.

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

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

HOUSTON — The University of Houston (UH) has reached an agreement regarding web accessibility under Title II of the American with Disabilities Act (ADA), announced U.S. Attorney Ryan K. Patrick. 

Web accessibility for people with disabilities in higher education is of critical importance, particularly in light of the increased reliance on the use of technology and web-based platforms as an integral part of its educational services, programs, and activities. 

The U.S. Attorney’s Office initiated a compliance review in November 2016 to determine whether the school’s website and online course offerings were accessible to individuals with disabilities and in compliance with the ADA. The review evaluated the accessibility of the university’s primary learning management system to ensure students with disabilities have an equal opportunity to participate in programs. Audits uncovered multiple issues inconsistent with ADA accessibility and adversely impact the ability of individuals with disabilities to participate in the UH educational programs, services and activities.

UH is one of the largest schools in Texas. It is a Carnegie-designated tier one university with over 46,000 students. UH fully cooperated with this compliance review and has proactively and voluntarily taken steps to resolve the issues and increase accessibility. 

Assistant U.S. Attorneys Elizabeth Karpati and Keith Edward Wyatt handled this investigation.

CORPUS CHRISTI, Texas - A 23-year-old Edinburg woman has been sentenced to federal prison for multiple conspiracies of transporting illegal aliens, announced U.S. Attorney Ryan K. Patrick.

Today, U.S. District Judge David S. Morales ordered Joceline Esmeralda Garcia to serve a total of 51 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the court heard how Garcia recruited, facilitated or directed more than five individuals to transport undocumented aliens, often in the enclosed trunks of vehicles. In one instance, humans had been concealed within wooden furniture in a U-Haul van. 

Garcia had pleaded April 17, 2019, to an alien smuggling conspiracy involving seven smuggling events and 18 undocumented aliens. While on bond pending sentencing in that case, Garcia continued to lead a subsequent alien smuggling conspiracy involving three human smuggling events and eight additional undocumented aliens.

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

Customs and Border Protection conducted the investigation. Assistant U.S. Attorney Reid Manning is prosecuting the case.

HOUSTON – A 19-year-old U.S. citizen residing in Richmond is set to appear in federal court on allegations he made a bomb threat against University of Houston (UH), announced U.S. Attorney Ryan Patrick.

Ibraheem Ahmed Al Bayati is charged with making threats or conveying false information to destroy by means of fire or explosives and making a threat over interstate commerce. He is expected to make his initial appearance before U.S. Magistrate Judge Sam Sheldon today at 2 p.m.

Federal authorities took him into custody late Friday, Sept. 4, upon the filing of a criminal complaint. According to those charges, Al Bayati identified himself as Abu Qital al Jihadi al Mansur and joined a UH student lecture via Zoom on Sept. 2. Shortly thereafter, he allegedly interrupted and said “what does any of this have to do with the fact that UH is about to get bombed in a few days?

According to the criminal complaint, he then uttered an Arabic a phrase that means the “Islamic State will remain.” Al Bayati then allegedly held up his index finger and repeated the phrase. He left the call to the gasps of students, according to the charges.

The complaint further states that Al Bayati’s discussion about the “Islamic State” is a reference to a certain foreign terrorist organization also known as ISIS (Islamic State of Iraq and al-Sham).

In addition, Al Bayati allegedly sought out ISIS supporters online, helped an individual make a “pledge” and, according to Al Bayati, was known as an ISIS recruiter.  

If convicted of making threats or conveying false information to destroy by means of fire or explosives, Al Bayati faces up to 10 years in federal prison in addition to a maximum of five years for making a threat over interstate commerce.

The FBI’s Joint Terrorism Task Force conducted the investigation. Assistant U.S. Attorneys Alamdar Hamdani and Steven Schammel of the Southern District of Texas are prosecuting the case with the assistance of Trial Attorney Michael Dittoe in the Department of Justice’s counterterrorism section.

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

HOUSTON – A 41-year-old man has been ordered to federal prison for sexual exploitation of a child as well as distribution and possession of child pornography, announced U.S. Attorney Ryan K. Patrick. 

James Glenn Fulcher pleaded guilty Sept. 16, 2019. 

At a hearing that concluded late today, the court heard evidence demonstrating a pattern of abuse which rendered Fulcher a repeat and dangerous sex offender. Two of the victim’s family members spoke at the hearing, each explaining their anger at what Fulcher did to their family and/or the betrayal they felt.   

U.S. District Judge Lynn N. Hughes then ordered Fulcher to serve 360 months for producing child pornography aka sexual exploitation of a child. He also received 240 and 120 months for the distribution and possession convictions, respectively. All sentences were ordered to be served consecutively for a total of 720 months in federal prison. Fulcher must also pay $12,000 in restitution.

The National Center for Missing and Exploited Children alerted authorities to a particular social media site with a user suspected of uploading dozens of images containing child exploitation material. The investigation led to the identification of Fulcher using that account.   

Law enforcement later conducted a search of his email account where they found multiple images and videos of child pornography. Some depicted bondage and prepubescent children. There were also images of an adult appearing to be Fulcher with a minor relative. Images showed his penis exposed and pointed at the back of the minor’s head.

Another video depicted an adult male with a distinctively tattooed forearm who is manipulating a minor male’s genital area both outside and inside the pants. At one point, the adult removes the child’s penis from his pants so as to display it to the camera. 

Law enforcement secured a federal search warrant for the location where Fulcher had been residing. At that time, they spoke with one of his relatives who identified the minor male victim in the video as well as Fulcher’s forearm and tattoo.

Authorities later obtained and executed a search warrant at Fulcher’s new residence where they seized a cell phone and two hard drives. Forensic examination resulted in the discovery of 1,035 images and 261 videos of young children engaged in sexually-explicit conduct.

Fulcher 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.

Assistant U.S. Attorney Kimberly Ann Leo 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.

BROWNSVILLE – A 60-year-old resident of Brownsville has entered a guilty plea to one count 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 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.  

U.S. District Judge Rolando Olvera accepted the plea and set sentencing for Nov. 25. At that time, Garza faces up to 10 years in federal prison and a possible $250,000 maximum fine. He will remain in custody pending that hearing.  

The U.S. Marshals Service conducted the investigation. Assistant U.S. Attorney Nikki Piquette is prosecuting the case.  

HOUSTON – A 34-year-old resident of Houston has been ordered to prison for a second time following his conviction of illegally possessing firearms and ammunition, announced U.S. Attorney Ryan K. Patrick.

Joffre Cross III pleaded guilty Feb. 5.

Today, Chief U.S. District Judge Lee Rosenthal ordered Cross to serve 57-month sentence to be immediately followed by three years of supervised release. At the hearing, the court discussed additional information including his prior conviction pertaining to the theft and sale of controlled substances from a military hospital while Cross was in the U.S. Army. In handing down the sentence, Judge Rosenthal increased the term of imprisonment due to the number of firearms Cross had built himself.

On Feb. 20, 2019, authorities executed a federal search warrant at the Cross residence. Upon entry, they located an AK-style rifle and approximately 2200 rounds of ammunition.

Having been convicted in April 2008 in North Carolina federal court for distribution of controlled substances, he is prohibited per federal law of possessing any firearms or ammunition.

At the time of the search they also found a homemade pistol and three homemade rifles.

“Preventing potentially violent criminal activity by intercepting illegally obtained firearms and thousands of rounds of ammunition is at the core of the ATF mission,” said Special Agent in Charge Fred Milanowski of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). “Leveraging our partnerships to disrupt the shooting cycle remains our focus.”

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

The FBI and ATF conducted the investigation. Assistant U.S. Attorney Steven Schammel is prosecuting the case.

BROWNSVILLE, Texas – A 24-year-old Brownsville resident has pleaded guilty for her role in an alien smuggling incident involving a juvenile resident of the Southwest Key facility, announced U.S. Attorney Ryan K. Patrick.

Karla Izaguirre appeared in federal court today and admitted she harbored an underage undocumented boy from Honduras.

Izaguirre was an employee of Southwest Key, a government-sponsored shelter, where she had been professionally trained to work and care for illegal alien juveniles. The teen was an unaccompanied minor who entered the United States illegally and was under Southwest Key’s supervision.

On July 5, 2019, the facility sponsored an outing at the Harlingen Arts and Heritage Museum. While there, the juvenile fled on foot.

The investigation led to Izaguirre. Authorities subsequently arrested her, at which time she acknowledged knowing the minor boy was illegally present in the United States and helping to plan the escape. She also admitted she harbored him in her own home for approximately three months.

U.S. District Judge Fernando Rodriguez accepted the plea and set sentencing for Dec. 8. At that time, Izaguirre faces up to five years in federal prison and a possible $250,000 maximum fine. She will remain in custody pending that hearing.

Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of the U.S. Department of Health and Human Services. Assistant U.S. Attorney Nikki Piquette is prosecuting the case.

HOUSTON - A suburban Houston-area man has been ordered to prison following his convictions of 15 counts of fraud and tax violations, announced U.S. Attorney Ryan K. Patrick.

A Houston federal jury convicted Winfred Fields Feb. 13 following a two-week trial.

Today, U.S. District Judge Ewing Werlein Jr. handed Fields a 109-month sentence to be immediately followed by three years of supervised release.

Fields operated tax and bookkeeping businesses from an office on Richmond Avenue in Houston for many years under the business names Fields Enterprises, Your Tax Professionals and The Tax Boss.

At trial, the jury heard Fields participated in a scheme involving the submission of U.S. Individual Tax Returns on behalf of foreign people working on vessels on the Outer Continental Shelf of the United States. These crewmembers were engaged in oil and gas exploitation activities in the Gulf of Mexico. 

“In order to enrich himself and line his own pockets, the defendant mislead his clients by falsely claiming an international tax treaty was justification for amending their tax returns,” said Special Agent in Charge D. Richard Goss of  IRS-Criminal Investigation’s (CI) Houston Field Office. “As shown by today’s sentencing, this type of deceit will not go unpunished. IRS-CI will continue to protect the public by pursuing unscrupulous tax return preparers.”

“Tax fraud schemes have been around for many years,” said Inspector in Charge Adrian Gonzalez of the Houston Division of the U.S. Postal Inspection Service (USPIS). “USPIS is committed to working with our law enforcement partners to ensure the U.S. Mails are not used as a tool to facilitate these fraudulent schemes. The arrest and sentencing of Winfred Fields was a direct result of the collaborative efforts between the USPIS and IRS-CI.”

At trial, the evidence showed Fields falsely claimed workers were exempt from U.S. tax under a tax treaty between the United States and the United Kingdom, Spain or New Zealand. The employing companies had previously provided to the IRS withholdings from the worker’s wages and reported the income to the IRS. However, Fields submitted amended tax returns as well as original nonresident tax forms 1040NR claiming a refund of the entirety of the amounts paid in as U.S. taxes for various tax years including 2007 through 2012. 

Fields charged a fee of $2,500 for each crew member’s first return and required a $1,000 fee for each return thereafter. He required direct receipt of the refunds so he could negotiate the checks and take his fee off the top. Fields had some refund checks deposited directly into one of several bank accounts he maintained. Alternatively, he cashed the checks at a Houston check cashing business or had the checks deposited into one of several attorney trust accounts three different Houston lawyers had maintained. Fields gathered the check proceeds or deposited them into the attorney trust accounts after paying a fee to the check cashing business and the attorneys for the service of cashing the U.S. Treasury checks. Fields deposited the proceeds in one of several bank accounts he utilized during the scheme.

Fields agreed to provide the remainder of the refund proceeds to the foreign clients. He did that for a while, but ultimately stopped forwarding any money to the workers. As those individuals began contacting him to ask for updates on their refund claims, he repeatedly sent misleading and materially false responses to their questions. 

The jury heard that Fields fraudulently obtained $3,097,974.19 in tax refunds from the IRS and kept approximately $1,302,271.75 for himself.

The defense attempted to convince the jury he acted in good faith and believed the wages were exempt. He also claimed he was trying to pay the crewmembers their refunds but just got behind. The jury rejected Fields’ contentions in their verdict and found him guilty as charged on all 15 counts.

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

IRS - CI and USPIS conducted the investigation. Assistant U.S. Attorneys Melissa Annis and Charles Escher prosecuted this case.

HOUSTON – A man has admitted he filed a tax return alleging there were no taxes owed, announced U.S. Attorney Ryan K. Patrick.

Gilberto Parada-Arevalo pleaded guilty today to one count of filing a false 2011 U.S. corporate income tax return for Tamaleria Panaderia Y Pupuseria La Roca Inc. In that return, he falsely claimed the corporation owed no income taxes for 2011.  

As part of the plea agreement, Parada-Arevalo agreed the relevant conduct - total intended tax loss - for purposes of sentencing is between $100,000 and $250,000. He has agreed to pay more than $74,000 in restitution to the IRS.

U.S. District Judge George Hanks accepted the plea and set sentencing for Nov. 16. At that time, Parada-Arevalo faces up to three years in federal prison and a possible $250,000 maximum fine.

He was permitted to remain on bond pending that hearing.      

IRS – Criminal Investigation conducted the investigation0n. Assistant U.S. Attorney Charles J. Escher is prosecuting the case.

HOUSTON – A 37-year-old Houston man has been handed a significant sentence following his conviction of conspiracy to possess with intent to distribute cocaine, announced U.S. Attorney Ryan K. Patrick.

Ernesto Martinez pleaded guilty Sept. 25, 2019.

Today, Chief U.S. District Judge Lee H. Rosenthal imposed a 200-month sentence to be followed by five years of supervised release.

In handing down the sentence, the court found Martinez ran a large-scale cocaine distribution network that spanned more than four years. During that time, Martinez and his associates distributed more than 50 kilograms of cocaine to a large number of cocaine distributors based throughout the country to include cities in Texas, Ohio, Florida and Arkansas.

The judge found Martinez to be a leader and organizer in the drug operation who dealt directly with cartel members in Mexico.

Martinez also possessed a firearm when trafficking cocaine on one occasion and maintained a residence in Houston used to stash cocaine and drug proceeds.

To date, seven others have been convicted for their respective roles in the drug trafficking organization.  

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

The Drug Enforcement Administration and Harris County Sheriff’s Office led the investigation as part of the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.

Assistant U.S. Attorney Casey N. MacDonald is prosecuting the case.

HOUSTON – A 20-year-old man has made an appearance in federal court and ordered detained on charges relating to sexual exploitation of a child, announced U.S. Attorney Ryan Patrick.

A federal grand jury returned the indictment against Javon Opoku Aug. 19. Authorities took him into custody Aug. 24.

Today, he appeared before U.S. Magistrate Judge Andrew M. Edison who found Opoku was a danger to the community and ordered him detained pending further criminal proceedings.

The court heard that Opoku had been pulled over for a traffic violation in February. According to testimony, Opoku was on a bond for capital murder, evading arrest and unlawful carrying of a weapon charges at the time of the stop. Law enforcement seized his cellphone and took him into custody. He was later released again on bond.

According to testimony today, Opoku had been on bond for eight different charges that stemmed from alleged activities on four different dates.

At the hearing, the court also heard that law enforcement conducted a search of his seized phone and discovered three videos that appeared to be child pornography. The videos all allegedly depict Opoku vaginally penetrating a 16-year-old female.

Common conditions of bond generally include that individuals not possess weapons, refrain from narcotics and not commit new offenses, according to testimony. The court heard Opoku had done some or all of this while out on his previous bond.

If convicted, Opoku faces a minimum of 15 and up to 30 years in federal prison and a possible $250,000 maximum fine as well as restitution.  

The FBI and Houston Police Department conducted the investigation.

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

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

CORPUS CHRISTI, Texas – A federal grand jury has returned an indictment against a former Texas top 10 fugitive and alleged member of the Aryan Brotherhood of Texas, announced U.S. Attorney Ryan K. Patrick.

The indictment was unsealed today charging Tyral Glenn Turner, 34, of Mathis. He had been in state custody on related charges. He is expected to appear in Corpus Christi federal court before U.S. Magistrate Judge Jason B. Libby Sept. 2.

The indictment charges Turner with one count of possession with intent to distribute over 350 grams of fentanyl and one count of unlawful possession of a firearm by a felon.

Authorities apprehended Turner June 26 as part of Operation Triple Beam, a collaboration of federal, state and local authorities targeting alleged violent gang members in the gulf coast region. At the time of his arrest, law enforcement allegedly seized over 350 grams of fentanyl packaged for distribution.

The charges further allege he also had a loaded 9 mm glock model 19 in his possession. Turner is a convicted felon. As such, he is prohibited by federal law of possessing a firearm or ammunition.

If convicted of the drug charges, he faces up to 40 years in federal prison and a possible $5 million maximum fine. The gun charge carries a 10-year-maximum possible penalty.  

The U.S. Marshals Service and Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorney Neel Kapur 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.

CORPUS CHRISTI, Texas – A Cuban national has made another appearance in federal court following the return of a superseding indictment related to the distribution of cocaine, announced U.S. Attorney Ryan K. Patrick.

Osvaldo Iglesias Ruiz, 34, is charged with one count of possession with intent to distribute more than 10 kilograms of cocaine.

Ruiz was originally charged by criminal complaint in March. He made an initial appearance on those charges, but was granted release upon posting bond. Shortly thereafter, authorities caught him as he was allegedly attempting to flee the United States in a boat off the coast of Florida heading towards Cuba. He appeared in court today and ordered into custody pending further criminal proceedings.

According to the criminal complaint, on March 14, Ruiz approached the Javier Vega Jr. checkpoint in Sarita traveling northbound. He was allegedly driving a tractor-trailer, but without an attached trailer. The complaint alleges he  provided authorities inconsistent answers pertaining to the direction he was traveling. A K-9 also alerted to the rear differential of the vehicle, according to the charges.

He was then referred to secondary inspection where authorities allegedly discovered multiple cocaine bundles weighing more than 10 kilograms.

The drugs have an estimated street value of $250,000.

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

Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of Customs and Border Protection, U.S. Marshals Service and U.S. Coast Guard. Assistant U.S. Attorney Neel Kapur 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 52-year-old pain management physician from Houston has paid $530,000 to resolve allegations he falsely billed Medicare for the use of electro-acupuncture devices, announced U.S. Attorney Ryan K. Patrick. 

From March 1, 2019, to Oct. 31, 2019, Dr. Syed Nasir billed Medicare for the implantation of neurostimulator electrodes–a surgical procedure that usually requires use of an operating room. Medicare pays thousands of dollars for this procedure.

However, Nasir did not perform these surgeries. Instead, he applied a device used for electro-acupuncture. This procedure involves inserting needles into patients’ ears with the neurostimulator taped behind them with an adhesive.  

Medicare does not reimburse for electro-acupuncture devices as implantable neurostimulators.

This is the second settlement of its kind involving electro-acupuncture billing the Southern District of Texas has resolved.

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

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

McALLEN, Texas - A 31-year-old Mexican national has pleaded guilty to transportation of child pornography, announced U.S. Attorney Ryan K. Patrick.  

On Dec. 10, 2019, Edgar Arevalo-Lara entered the United States from Mexico through the Roma Port of Entry. There, he claimed he was travelling to Dallas for a month. However, authorities noticed he did not appear to have enough luggage or money with him to support his reported length of stay.

Upon further investigation, they discovered 53 images on his phone depicting minors engaged in sexually explicit conduct. He admitted he downloaded child pornography from the internet and knew the images were graphic.

U.S. District Judge Randy Crane accepted the plea and has set sentencing for Nov. 5. At that time, Arevalo-Lara faces a minimum of five and up to 20 years imprisonment and a possible $250,000 maximum fine.

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

Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation.

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

BROWNSVILLE, Texas - A 19-year-old resident of Harlingen made an appearance in federal court today and admitted he was responsible for threatening to destroy the Federal Reserve, announced U.S. Attorney Ryan K. Patrick.

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

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.

U.S. District Judge Fernando Rodriguez will impose sentencing Nov. 30 at 8:30 a.m., at which time Schrimsher faces up to five years in prison and a $250,00o maximum possible fine. He has been and will remain in custody pending that hearing.

The FBI, Cameron County District Attorney’s Office, Harlingen Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorneys Jody Young and Oscar Ponce are prosecuting the case.       

HOUSTON – A criminal complaint has been unsealed charging a 53-year-old College Station man for conspiracy, making false statements and wire fraud.

Texas A&M University (TAMU) Professor Zhengdong Cheng is expected to make his initial appearance before U.S. Magistrate Judge Sam Sheldon today at 2 p.m. in Houston. Authorities took him into custody Sunday, Aug. 23.  

Cheng allegedly led a team conducting research for NASA. According to the criminal complaint, for several years he willfully took steps to obscure his affiliations and collaboration with a Chinese University and at least one Chinese-owned company. The terms of Cheng’s grant prohibited participation, collaboration or coordination with China, any Chinese-owned company or any Chinese University, according to the charges.

“China is building an economy and academic institutions with bricks stolen from others all around the world,” said U.S. Attorney Ryan K. Patrick. “While 1.4 million foreign researchers and academics are here in the U.S. for the right reasons, the Chinese Talents Program exploits our open and free universities. These conflicts must be disclosed, and we will hold those accountable when such conflict violates the law.”

“Once again we have witnessed the criminal conflicts that can arise from participation in the Chinese government’s talent program,” said Assistant Attorney General for National Security John C. Demers. “Professor Cheng allegedly made false statements to his university and to NASA regarding his affiliations with the Chinese government. The Department of Justice will continue seeking to illuminate the darkness around these talent programs and expose the exploitation of our nation and our prized research institutions.”

The charges allege Cheng and TAMU received funds based on Cheng knowingly providing false information to TAMU and consequently to NASA. In addition to the funds, Cheng personally benefited from his affiliation with TAMU and NASA with increased access to unique NASA resources, such as the International Space Station, according to the complaint. This access allegedly allowed Cheng to further his standing in China at Guangdong University of Technology and other universities. The charges further allege he held senior research positions there unknown to TAMU and NASA and was able to serve in the People’s Republic of China Talents program.

China’s Talents Plans are allegedly designed to attract, recruit and cultivate high-level scientific talent in furtherance of China’s scientific development, economic prosperity and national security.

“NASA’s funding restrictions are in place to protect taxpayer-financed research dollars and intellectual property,” said Special Agent in Charge Mark Zielinski, NASA Office of Inspector General (OIG) - Eastern Field Office. “We will continue pursue anyone who attempts to circumvent these guidelines and conceal affiliations with Chinese institutions and companies in order to obtain NASA grant money.”

“Dr. Cheng is accused of hiding his affiliation with the Guangdong University of Technology, along with other foreign universities, while disregarding the rules established under his NASA contract during his employment at TAMU,” said FBI Houston Special Agent in Charge Perrye K. Turner. “These alleged actions came to light through the tireless work of the FBI-Bryan Resident Agency and NASA-OIG investigative teams. We are grateful to TAMU, TAMU System and TAMU Engineering Experiment Station for providing significant assistance through their partnership with us throughout this case.”

Assistant U.S. Attorneys Carolyn Ferko and S. Mark McIntyre are prosecuting the case with the assistance of trial attorney Matthew McKenzie of the National Security Division’s Counterintelligence and Export Control Section.

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

A criminal complaint has been unsealed today, charging Zhengdong Cheng, 53, of College Station, Texas, for conspiracy, making false statements and wire fraud. 

Texas A&M University (TAMU) Professor Zhengdong Cheng is expected to make his initial appearance before U.S. Magistrate Judge Sam Sheldon today at 10 a.m. in Houston, Texas.  Authorities took him into custody Sunday, Aug. 23. 

Cheng allegedly led a team conducting research for NASA. According to the criminal complaint, for several years he willfully took steps to obscure his affiliations and collaboration with a Chinese University and at least one Chinese-owned company.  The terms of Cheng’s grant prohibited participation, collaboration or coordination with China, any Chinese-owned company or any Chinese University, according to the charges.

“Once again, we have witnessed the criminal consequences that can arise from undisclosed participation in the Chinese government’s talent program,” said Assistant Attorney General for National Security John C. Demers.  “Professor Cheng allegedly made false statements to his university and to NASA regarding his affiliations with the Chinese government.  The Department of Justice will continue seeking to bring participation in these talent programs to light and to expose the exploitation of our nation and our prized research institutions.”

“China is building an economy and academic institutions with bricks stolen from others all around the world,” said U.S. Attorney Ryan K. Patrick for the Southern District of Texas. “While 1.4 million foreign researchers and academics are here in the U.S. for the right reasons, the Chinese Talents Program exploits our open and free universities. These conflicts must be disclosed, and we will hold those accountable when such conflict violates the law.”

“As alleged, Zhengdong Cheng knowingly deceived NASA officials about his association with Chinese owned companies and universities, willingly accepted U.S. government funding, and defrauded his university,” said Assistant Director Alan Kohler, Jr. of the FBI’s Counterintelligence Division.  “The FBI is committed to aggressively pursuing those individuals who try and undercut our U.S. research institutions and government agencies by concealing their participation in Chinese talent recruitment programs and to hold them accountable for their actions.” 

“NASA’s funding restrictions are in place to protect taxpayer-financed research dollars and intellectual property,” said Special Agent in Charge Mark Zielinski, NASA Office of Inspector General (OIG) - Eastern Field Office.  “We will continue pursue anyone who attempts to circumvent these guidelines and conceal affiliations with Chinese institutions and companies in order to obtain NASA grant money.”

“Dr. Cheng is accused of hiding his affiliation with the Guangdong University of Technology, along with other foreign universities, while disregarding the rules established under his NASA contract during his employment at TAMU,” said FBI Houston Special Agent in Charge Perrye K. Turner.  “These alleged actions came to light through the tireless work of the FBI-Bryan Resident Agency and NASA-OIG investigative teams.  We are grateful to TAMU, TAMU System and TAMU Engineering Experiment Station for providing significant assistance through their partnership with us throughout this case.”

The charges allege Cheng and TAMU received funds based on Cheng knowingly providing false information to TAMU and consequently to NASA.  In addition to the funds, Cheng personally benefited from his affiliation with TAMU and NASA with increased access to unique NASA resources, such as the International Space Station, according to the complaint.  This access allegedly allowed Cheng to further his standing in China at Guangdong University of Technology and other universities.  The charges further allege he held senior research positions there unknown to TAMU and NASA and was able to serve in the People’s Republic of China Talents program.  China’s Talents Plans are allegedly designed to attract, recruit and cultivate high-level scientific talent in furtherance of China’s scientific development, economic prosperity and national security.

The FBI-Bryan Resident Agency and NASA-Office of Inspector General conducted the investigation with the assistance of TAMU.  Assistant U.S. Attorneys Carolyn Ferko and S. Mark McIntyre are prosecuting the case with the assistance of trial attorney Matthew McKenzie of the National Security Division’s Counterintelligence and Export Control Section.

The details contained in the charging documents are allegations.  The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

HOUSTON – A 67-year-old resident of Houston is set to appear in federal court on allegations of mail fraud, announced U.S. Attorney Ryan K. Patrick.

Alan H. Paull is expected to make his initial appearance before U.S. Magistrate Judge Sam Sheldon today at 2:15 p.m.

The indictment, returned Aug. 12, charges Paull with four counts of mail fraud for his alleged role in a scheme to defraud investors in his lending business Paull & Partners Investments LLC. From approximately July 2014 through September 2015, Paull allegedly made false representations and concealed material facts from those who had provided funds to his lending enterprise.

The charges allege he failed to repay investors their principal when a property sold as he had represented to them. Instead, Paull continued to pay monthly interest to those investors leading them to believe the properties had not been sold, according to the charges.

If convicted of mail fraud, Paull faces up to 20 years in federal prison as well as a possible $250,000 maximum fine.

The FBI conducted the investigation with the assistance of the Texas State Securities Board. Assistant U.S. Attorney John Braddock 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.

Authorities have taken nine people into custody on charges involving the distribution of meth, cocaine and/or oxycodone and hydrocodone, announced Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division and U.S. Attorney Ryan K. Patrick for the Southern District of Texas.

Jermaine West, 42, aka Breadman is charged with Jonathan Rawlins, 44, and Bobby Pharms, 34, all from Houston, Texas, in the meth and cocaine conspiracy. The indictment also alleges West was involved in the illegal distribution of prescription opioids along with Tersha French, 46, Ronald Lucas, 40, and Antonia Vega, 32, all from Houston; Cynthia Ngwaba, 46, Richmond, Texas; Leon Covin, 47, Katy, Texas; and Toni Maria Nalintya, 48, Pearland, Texas.

The indictment was unsealed in its entirety today as authorities took Rawlins into custody. He is expected to make his initial appearance before U.S. Magistrate Judge Sam Sheldon at 10 a.m. CDT tomorrow. The others made their appearances earlier this week.

A federal grand jury returned the indictment under seal Aug. 13. According to the charges, West allegedly engaged in conspiracy during 2018 to 2019 to distribute meth and cocaine near schools and other locations in the Houston area with Rawlins and Pharms. West allegedly conducted some of the illegal activity on multiple occasions within 1000 feet of Worthing High School in the 3rd Ward of Houston. 

The indictment alleges the conspiracy also involved the distribution of prescription opioids. West allegedly obtained the drugs from French, Lucas, Vega, Ngwaba, Covin and Nalintya via the Ennis Street Pharmacy and Barker Cypress Pharmacy in Houston.

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

The FBI conducted the investigation through the Houston Anti-Gang Center with the assistance of the Houston Police Department, Texas Department of Public Safety and Drug Enforcement Administration. Trial Attorney Devon Helfmeyer with the Criminal Division’s Fraud Section and Assistant U.S. Attorney Jason Corley are prosecuting the case.

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 – Authorities have taken nine people into custody on charges involving the distribution of meth, cocaine and/or oxycodone and hydrocodone, announced U.S. Attorney Ryan K. Patrick and Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division.

Jermaine West, 42, aka Breadman is charged with Jonathan Rawlins, 44, and Bobby Pharms, 34, all from Houston, in the meth and cocaine conspiracy. The indictment also alleges West was involved in the illegal distribution of prescription opioids along with Tersha French, 46, Ronald Lucas, 40, and Antonia Vega, 32, all from Houston; Cynthia Ngwaba, 46, Richmond; Leon Covin, 47, Katy; and Toni Maria Nalintya, 48, Pearland.

The indictment was unsealed in its entirety today as authorities took Rawlins into custody. He is expected to make his initial appearance before U.S. Magistrate Judge Sam Sheldon at 10 a.m. tomorrow. The others made their appearances earlier this week, some of whom were ordered into custody pending detention hearings scheduled for Monday, Aug. 24. 

A federal grand jury returned the indictment under seal Aug. 13. According to the charges, West allegedly engaged in conspiracy during 2018-2019 to distribute meth and cocaine near schools and other locations in the Houston area with Rawlins and Pharms. West allegedly conducted some of the illegal activity on multiple occasions within 1000 feet of Worthing High School in the 3rd Ward of Houston. 

The indictment alleges the conspiracy also involved the distribution of prescription opioids. West allegedly obtained the drugs from French, Lucas, Vega, Ngwaba, Covin and Nalintya via the Ennis Street Pharmacy and Barker Cypress Pharmacy in Houston.

If convicted on the illegal narcotics charges, West, Rawlins and Pharms face up to life in prison and possible fines up to $10 million. For each count of the prescription drug charges, West also faces up to 20 years in prison as well as additional fines up to $1 million along with the six others.

The FBI conducted the investigation through the Houston Anti-Gang Center with the assistance of the Houston Police Department, Texas Department of Public Safety, Drug Enforcement Administration, Texas Department of Criminal Justice - Office of Inspector General, Harris County Sheriff’s Office and Texas Office of the Attorney General – Medicaid Fraud Control Group. Assistant U.S. Attorney Jason Corley and DOJ Trial Attorney Devon Helfmeyer 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 59-year-old Bryan resident has been ordered to federal prison after he admitted to wire fraud, announced U.S. Attorney Ryan K. Patrick.

James Day Burke pleaded guilty May 12, admitting he defrauded Rustex Inc., an oil and energy company in Bryan.

Today, U.S. District Judge George C. Hanks handed Burke a 41-month sentence to be immediately followed by three years of supervised release. At the hearing, the court heard from Rustex’s owner as well as her two daughters who described the impact the fraud has had on her and the business. In handing down the sentence, the court explained that society needed to be protected from people like Burke, called him a “charlatan” and that he stole for no other reason except for his own selfish greed.

Burke was employed as the bookkeeper at Rustex. From approximately May 2010 to approximately August 2018, Burke made unauthorized charges on company credit cards for personal expenses. He then paid those unauthorized personal charges from Rustex’s bank account.

For example, Burke accessed Rustex’s American Express account Aug. 7, 2015, to pay the July 2015 statement totaling $32,198.70. This amount included a personal dental charge of $1,954 which he had made using another employee’s company-issued credit card. He paid the outstanding credit card bill with money from Rustex’s bank account.

In total, Burke defrauded the company out of $855,872.42 as a result of his scheme.

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

The FBI - Bryan Resident Agency conducted the investigation with the assistance of the Brazos County Sheriff’s Office. Assistant U.S. Attorney John Braddock prosecuted the case.

McALLEN, Texas – A 46-year-old Alamo man is set to appear in federal court on allegations he accepted a bribe, announced U.S. Attorney Ryan K. Patrick.

Oziel Cantu is charged in a criminal complaint filed today. Authorities took him into custody last night. He is expected to appear before U.S. Magistrate Judge Juan F. Alanis tomorrow at 9:00 a.m.  

The charges allege Cantu accepted $15,000 in exchange for facilitating the unlawful importation of narcotics into the United States from Mexico.

Cantu worked at the Pharr Port of Entry and assisted an individual smuggle cocaine that was concealed in a vehicle, according to the charges. He allegedly instructed an individual to use a certain inspection lane at a specified time on Aug. 19, so he could allow the vehicle to pass through inspection.

Cantu allegedly believed that individual had ties to a drug trafficking organization. However, that person was actually an undercover officer.

Authorities took Cantu into custody after arriving to accept the $15,000 payment, according to the complaint.  

If convicted of bribery, Cantu faces up to 15 years in federal prison and a possible $250,000 maximum fine.

The Department of Homeland Security - Office of Inspector General and Customs and Border Protection - Office of Professional Responsibility conducted the investigation. Assistant U.S. Attorneys Frances Blake and James Sturgis are prosecuting the case.

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

CORPUS CHRISTI, Texas – Four Corpus Christi men are set to appear in federal court following the return of an indictment in relation to the operation of an illegal gambling business, announced U.S. Attorney Ryan K. Patrick.

The indictment was unsealed today and charges Nathan Nichols, 44, Richard Nunez, 47, Richard Conlon, 56, and Douglas Wells, 51, with one count of conspiracy to commit money laundering and four counts of operating an illegal gambling business. They are expected to appear for their arraignment Aug. 27 at 10 a.m. before U.S. Magistrate Judge Jason B. Libby.

From March 13, 2018, to Aug. 1, 2019, the men allegedly owned, operated or managed an illegal gambling business in Corpus Christi. The charges allege they also conspired to launder funds generated from that enterprise.  

According to the indictment, Nichols, Nunez, Conlon and Wells concealed and disguised the nature, location, source, ownership and control of the illegal gambling proceeds.

During the course of the investigation, authorities allegedly seized several million dollars, gold bars and multiple vehicles, including a Lamborghini.  

If convicted, all face up to 20 years in federal prison and a possible $500,000.00 maximum fine.

The FBI conducted the investigation. Assistant U.S. Attorneys Jeremy C. Fugate, Neel Kapur and Joel Dunn 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 35-year-old Texan has entered a guilty plea to coercion and enticement as well as receipt and possession of child pornography, announced U.S. Attorney Ryan K. Patrick.

Ryan Dale McWhorter had been in a chat group dedicated to the sexual exploitation of children. There, he began communicating with someone he believed to be the stepfather of a 9-year-old girl. McWhorter expressed his sexual interest in the child and asked for naked photos of her, to include her genitals. He also wanted the girl to take a picture of herself touching her stepfather’s penis. The “stepfather” was actually an undercover law enforcement officer.

McWhorter, who was residing in College Station, also discussed his intentions to travel to Florida in order to have sex with the child.

He eventually admitted to the sexual communications. Law enforcement also seized his cellphone. Forensic analysis of that device revealed 40 images of children engaged in sexually explicit conduct which included children under the age of 5.

They also discovered another chat, during which he received a video of child pornography and saved it to the photo gallery on his phone. 

McWhorter has been in custody since he was found to be a flight risk and a danger to the community. He will remain there pending his sentencing, which is set for Nov. 16 before U.S. District Judge Lynn N. Hughes. At that time, McWhorter faces up to life in prison for the coercion and enticement conviction, while the receipt and possession of child pornography charges carry additional penalties up to 20 and 10 years, respectively. He could also be ordered to pay up to a $250,000 fine.

The FBI - Bryan Resident Agency and Jacksonville, Florida, Field Office conducted the investigation along with the College Station Police Department.

Assistant U.S. Attorney Kimberly Ann Leo 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.  

McALLEN, Texas – A 35-year-old resident of Mexico City, Mexico, has been ordered to prison for bulk cash smuggling, announced U.S. Attorney Ryan K. Patrick.

Jorge Alberto Ruiz-Periban pleaded guilty April 8, admitting he evaded a currency reporting requirement in his attempt to conceal $570,247 while trying to take the money into Mexico.

Today, U.S. District Judge Randy Crane handed Ruiz-Periban a 30-month sentence. As part of the terms of the plea agreement, the money will be forfeited to the United States. In handing down the sentence, the court noted the Ruiz-Periban’s employment as a horse trainer in Mexico and that he was likely recruited by the cartel to launder money. Not a U.S. citizen, he is expected to face removal proceedings following the sentence.

“Today’s sentencing of Ruiz-Periban demonstrates that bulk cash smuggling is a serious crime motivated by greed, which directly contributes to the cartel violence that damages communities on both sides of the border,” said Special Agent in Charge Shane Folden of Homeland Security Investigations (HSI) in San Antonio. “HSI will continue to utilize its broad investigative authorities to dismantle transnational criminal organizations who blatantly ignore the laws of this nation.”

On Jan. 8, Ruiz-Periban entered the southbound inspection lanes in a vehicle at the Anzalduas Port of Entry. Authorities referred him to secondary inspection, at which time he denied possession of $10,000 or more in U.S. currency. However, they located an abnormality in the spare tire of Ruiz-Periban’s vehicle and subsequently discovered $570,247 concealed in it.  

At the time of his plea, Ruiz-Periban admitted he intended to evade the currency reporting requirement and intended to transport the money he hid in the tire from Mission to Mexico.

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

HSI conducted the investigation with Customs and Border Protection. Assistant U.S. Attorney Matthew Redavid prosecuted the case.

HOUSTON –  Two Houston-area family members have been ordered to federal prison following their convictions on multiple counts to include conspiracy, bank fraud, false statements on credit applications, wire fraud and mail fraud, announced U.S. Attorney Ryan K. Patrick.

A federal jury deliberated for approximately seven hours before convicting Carlos Wydler, 49, and Leyla Wydler, 60, both of Houston, on March 7, 2017, following a trial that spanned four weeks.

Today, U.S. District Judge Andrew Hanen imposed an 84-month sentence for Carlos Wydler and ordered him to pay $6,804,260 in restitution to the victim bank and its insurer. U.S. District Judge Andrew S. Hanen sentenced his step-mother to 132 months during a telephonic sentencing hearing in June. She was also ordered to pay the $6 million in restitution joint and several with her stepson. At the hearings, the court heard from the bank’s president who testified it was the largest fraud loss in the bank’s 113-year history

“The capture, conviction and sentencing of this mother and stepson highlight the FBI’s unending commitment to hold accountable greedy individuals who take advantage of their position of trust,” said Special Agent in Charge Perrye K. Turner of the FBI. “The FBI prioritizes financial institution fraud because it is not a victimless crime. Although the Wydlers did not wield weapons or threaten tellers, they endangered the stability of the federal banking system and our economy.”

Leyla Wydler was the owner of several Houston-area businesses including Globan Mortgage Company, Casa Milagro and First Milagro. In the spring 2007, Carlos Wydler went to work at a California bank as a vice-president in charge of the bank’s credit card department. Shortly thereafter, the Wydlers developed a scheme in which Leyla Wydler would send credit card applications to the bank for Carlos Wydler to approve. He approved the applications for high credit lines and then, calling them “balance transfers,” cash advanced the entire credit line to the borrower via wire or check with Leyla Wydler taking a fee from the borrowers’ loan proceeds.

“Greed and deception were at the heart of the Wydler’s scheme, which took advantage of their positions of trust within the banking industry,” said Inspector in Charge Adrian Gonzalez of the U.S. Postal Inspection Service (USPIS). “This case demonstrates that the USPIS remains resolute in our mission to bring to justice those who fraudulently use the nation’s mail system in the furtherance of their deceptive schemes.”

During trial, the evidence demonstrated that the Wydlers were also developing a real estate project in Houston at the time and used the “balance transfer” program to finance investors in their project. The jury heard that the bank did not know or approve of the fee-sharing or real estate financing arrangements. 

For approximately a year, hundreds of loan applications were faxed or emailed from Leyla Wydler’s business in Houston to Carlos Wydler at the bank in California. Many of these contained falsified income information and falsified supporting documents about borrowers’ employment, income and assets. Two eyewitnesses testified they saw Leyla Wydler routinely insert falsified income numbers, sometimes using white-out, on loan applications. 

Leyla Wydler skimmed more than $1.4 million from loan proceeds, with Carlos Wydler approving approximately $600,000 more in unauthorized loans to family members. More than half of the Texas borrowers run through the Wydler-family business in Houston defaulted on their loans. The bank sustained a loss of more than $6 million.

The defense attempted to convince the jury that Carlos Wydler followed bank policy in his approval decisions. Leyla Wydler’s attorney argued that she did not know that the information she was sending contained falsified information.

The jury did not believe their claims and ultimately convicted both defendants of conspiracy, bank fraud, false statements on credit applications, wire fraud and mail fraud. Carlos Wydler was also found guilty on six counts of misapplication of bank funds.

The Wydlers were taken into custody immediately after the verdict where they will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

The FBI, USPIS and Federal Deposit Insurance Corporation conducted the investigation. Assistant U.S. Attorneys Belinda Beek and John Lewis prosecuted the case.