Southern District of Texas

HOUSTON – A 64-year-old man has admitted to conspiring to commit money laundering for his role in a complex email fraud scheme, announced U.S. Attorney Ryan K. Patrick.

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

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

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

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

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

U.S. District Judge George C. Hanks accepted the plea today and has set sentencing for Aug. 19. At that time, Kim, of Firecrest, Washington, faces up to 20 years in federal prison and a possible $500,000 fine or twice the amount he intended to obtain as a result of the criminal offense.

Kim has been and will remain in custody pending sentencing.

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

LAREDO, Texas – A 22-year-old citizen of Guatemala has been charged with forcibly assaulting a Border Patrol (BP) agent, announced U.S. Attorney Ryan K. Patrick.    

A federal grand jury returned an indictment today against Josue Edilmar Ramirez-Pimentel. He is expected to appear for his arraignment next week before a U.S. magistrate judge in Laredo.  

The criminal complaint alleges that on March 11, authorities responded to call that six people were attempting to make illegal entry into the United States near Richter’s Ranch in Laredo. As they attempted to apprehend the group, several individuals ran back towards the river, according to the allegations.  

Ramirez-Pimentel, however, allegedly ran towards an agent. The agent then shined his flashlight at Ramirez-Pimentel and gave him commands in Spanish to stop and lay down, according to the charges. Ramirez-Pimentel allegedly did not comply and collided with the agent, causing him to hit his head on the ground.

Ramirez-Pimentel continued to struggle and struck the agent’s face with his forearm, according to the charges. The charges allege that as additional authorities arrived, they were eventually able to restrain and place Ramirez-Pimentel under arrest.

If convicted, Ramirez-Pimentel faces up to eight years in prison.

The FBI and Border Patrol conducted the investigation. Assistant U.S. Attorney Jennifer Day is prosecuting the case.

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

LAREDO, Texas – A 27-year-old resident of Reynosa, Tamaulipas, Mexico, has been charged with conspiracy and importation of meth, announced U.S. Attorney Ryan K. Patrick.

A federal grand jury sitting in Houston returned the two-count indictment again Luis Angel Burnias-Reyes today. Originally charged by criminal complaint March 19, he remains in custody. He is set to make his initial appearance before a U.S. magistrate judge in Laredo next week.

On Nov. 7, 2019, Burnias-Reyes allegedly entered the United States through a port of entry near McAllen utilizing a B1/B2 visa and driving a tractor-trailer. The charges allege he transported a large commercial tire inside the trailer that contained approximately 51 kilograms of liquid meth. He delivered the drug-laden tire in McAllen, according to the charges, and then returned to Mexico.

He was later arrested March 19 near Pharr after trying to re-enter the country at the port of entry. His visa was cancelled because of the arrest.

The estimated street value of the drugs is approximately $400,000.   

If convicted, he faces a mandatory minimum of 10 years and up to life in federal prison on each count and a possible $10 million maximum fine.

Immigration and Customs Enforcement’s Homeland Security Investigations is conducted the investigation. Assistant U.S. Attorney Anthony J. Evans 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 40-year-old Houston man has entered a guilty plea in Corpus Christi federal court to money laundering through wire fraud, announced U.S. Attorney Ryan K. Patrick.

Mohamad Sylla admitted he conspired with Jose Luis Briseno, 41, Tynan, and David Contreras, 42, Paso Robles, California, to get a Houston oil production company to issue paychecks for work Contreras never completed and while he was not even employed there.

From Jan. 1 to Sept. 11, 2015, Briseno and Sylla were employed at the company as the service coordinator and South Texas region manager, respectively. The two men conspired to approve timesheets for Contreras even though he was no  longer employed there. Briseno and Sylla ensured the timesheets were approved and payments issued. Once Contreras received the funds, he would split the paycheck with Briseno and Sylla.

As a result, Contreras, Briseno and Sylla falsely obtained funds totaling approximately $40,383.91.

Briseno and Contreras have also pleaded for their roles in the scheme.

U.S. District Judge David Morales will impose Sylla’s sentencing Aug. 31. At that time, Sylla faces up to 20 years in federal prison and a possible $500,000 maximum fine.

He was permitted to remain on bond pending that hearing.

The FBI conducted the investigation. Assistant U.S. Attorney Jeremy C. Fugate is prosecuting the case. 

McALLEN, Texas - An 80-year-old Mission man has entered a guilty plea for attempting to export contraband cigarettes, announced U.S. Attorney Ryan K. Patrick.

Jose Francisco Guerra owned and operated Victor M. Guerra Inc., a customs brokering company in Hidalgo. On Jan. 15, law enforcement stopped a tractor-trailer which later revealed approximately 17 million cigarettes headed for Mexico. The shipping manifest had been falsified as to the vehicle’s contents, and the cigarettes lacked the applicable tax stamp as Texas law requires.

The investigation revealed the cigarettes originated in a warehouse located at 2900 North Depot Road in Hidalgo. Guerra controlled and operated that warehouse and facilitated the storage and sale of the cigarettes. Guerra was also found to be in control of another warehouse in McAllen. Both warehouses contained a combined total of 422,917,800 contraband cigarettes destined to be exported to Mexico.

Guerra admitted to his role in the attempted smuggling event, adding that he knew exporting contraband cigarettes into Mexico was illegal and intended to export additional cigarettes. At his plea today, Guerra also agreed to forfeit his customs broker license, pay a fine and forfeit his interest in the cigarettes and items seized from his warehouse.

The total value of the cigarettes and equipment authorities seized is estimated at approximately $88 million. 

In addition to accepting Guerra’s guilty plea, U.S. District Judge Micaela Alvarez entered an order of forfeiture against equipment and cigarettes seized from the truck and Guerra’s warehouses. She will set sentencing at a later date. At that time, Guerra faces up to 10 years in federal prison and a possible $250,000 fine.

He  was permitted to remain on bond pending that hearing.

Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of Texas Department of Public Safety. Assistant U.S. Attorney Michael Mitchell is prosecuting the case.

HOUSTON – A local physician has agreed to pay the United States $450,000 to resolve allegations that he falsely signed home health certifications and plans of care in exchange for money, announced U.S. Attorney Ryan K. Patrick. Dr. Maaz Abbasi, 41, also agreed to a three-year period of exclusion from participation in any federal health care program. 

The investigation began after authorities uncovered Abbasi’s connection to a fraud matter involving home health company Circuit Wide Healthcare Inc. Its owner - Egondu “Kate” Koko - admitted she paid illegal kickbacks to physicians like Abbasi for paperwork necessary to bill Medicare for home health services purportedly provided.

From 2015 to 2018, Abbasi certified patients for home health services without any knowledge of their medical condition or homebound status. Circuit Wide paid Abbasi approximately $6,200 in exchange for signing these fraudulent Medicare home health certifications and plans of care. Abbasi also fraudulently signed a fellow physician’s name on these certifications and plans of care without that physician’s authorization, permission or knowledge.

The agreement resolves the allegations without a determination of liability. 

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

HOUSTON — The owners of a property known as Center West Plaza have settled allegations under Title III of the Americans with Disabilities Act (ADA) to remove barriers and greatly improve physical accessibility, announced U.S. Attorney Ryan K. Patrick.

The United States initiated an investigation into Center West Plaza as part of a compliance review of strip shopping centers after receiving a complaint regarding a similar property. The investigation revealed that physical barriers existed at various locations in the parking lot and access points of the shopping center. 

The settlement agreement requires the property owner to remedy all access barriers the United States has identified within three months. 

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

The Center West Plaza property is a place of public accommodation. As such, the owner is subject to the Title III requirements.

The United States Attorney is authorized to commence a civil action when he believes discrimination exists, seeking full compliance with the ADA, including requiring the owners and operators of places of public accommodations to remedy the violations.

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

HOUSTON – The owners of a property known as A-S 76 on Highway 290 have settled allegations under Title III of the Americans with Disabilities Act (ADA) to remove barriers and greatly improve physical accessibility, announced U.S. Attorney Ryan K. Patrick.

The United States initiated an investigation into A-S 76 Hwy 290 Bingle L.P. as part of a compliance review of strip shopping centers after receiving a complaint regarding a similar property. The investigation revealed that physical barriers existed at various locations in the parking lot and access points of the shopping center. 

The settlement agreement requires the property owner to remedy all access barriers within six months. 

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

The Bingle Property is a place of public accommodation. As such, the owner is subject to Title III requirements.

The United States Attorney is authorized to commence a civil action, when he believes discrimination exists, seeking full compliance with the ADA, including requiring the owners and operators of places of public accommodations to remedy the violations. 

The owner denies the allegations that it violated the ADA, but agreed to remedy all the alleged violations the United States has identified.  

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

CORPUS CHRISTI, Texas – A 57-year-old Houston man has entered a guilty plea in Corpus Christi federal court for conspiring to commit health care fraud, announced U.S. Attorney Ryan Patrick.

Ravinder Syal admitted he engaged in a scheme that resulted in the false billing of $4,878,530.92 for services never provided to patients. From Feb. 1, 2018, until March 1, 2020, he acquired physicians’ practices throughout Texas and assumed control of their billing department. He then brought in a company located in India to bill false claims to Medicare, Medicaid and various insurance providers.

Syal would submit false claims for services that were never performed, for nutritional servicers that were never provided and even for office visits that occurred over holidays when the clinics were actually closed. He would also bill for services that could not even be performed at the clinics he acquired due to lack of equipment.

Syal altered the billing information and added these fraudulent services without the knowledge of the physicians at the respective practices.

As a result of his scheme, Medicare, Medicaid and various insurance providers were billed $4,878,530.92 for services never performed. Syal was overpaid $553,068.65 on the fraudulent claims.

Sentencing has been set for Aug. 10 before U.S. District Judge David S. Morales.  At that time, Syal faces up to 10 years in federal prison and a possible $250,000 maximum fine.  

Syal was permitted to remain on bond pending that hearing.

The FBI and the Texas Attorney General’s Medicaid Fraud Control Unit conducted the investigation. Assistant U.S. Attorney Jeremy C. Fugate is prosecuting the case.

CORPUS CHRISTI, Texas – A 45-year-old Houston man has been ordered to prison in Corpus Christi federal court following his conviction for transporting an undocumented Chinese national, announced U.S. Attorney Ryan K. Patrick.

The jury deliberated for approximately two hours before convicting Torrie Franklin Feb. 4 following a one-day trial.

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

On Nov. 12, 2019, Franklin drove a blue four-door sedan into the primary inspection lane at the Border Patrol (BP) Checkpoint located near Falfurrias. Upon his arrival, authorities conducted a routine inspection, at which time a K-9 alerted to the trunk of the vehicle. There, they found an undocumented Chinese national.

At the time of his arrest, Franklin told authorities he had encountered the man at a gas station. Franklin claimed the Chinese national asked for a ride to Houston, despite not knowing any English. He also said the man asked to ride in the trunk as opposed to inside the vehicle.

At trial, the jury heard from the Chinese national who said Franklin was the person who placed him inside the trunk. They also heard excerpts of Franklin’s phone calls in which he admitted his role in the offense.

The defense attempted to convince the jury that Franklin was merely a good Samaritan just providing a ride. They did not believe his claims and ultimately found him guilty as charged.

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

BP conducted the investigation. Assistant U.S. Attorney Neel Kapur and Barbara De Pena are prosecuting the case.

HOUSTON – A 32-year-old Pearland resident is set to appear on federal charges that he illegally sold firearms to convicted felons, announced U.S. Attorney Ryan K. Patrick.

Khalid Abdullah Abdullaziz is expected to make a virtual initial appearance before U.S. Magistrate Nancy K. Johnson at 2 p.m. today. Authorities filed the criminal complaint April 24, which was unsealed as he was taken into custody April 29.

The charges allege Abdullaziz is the owner of Zeroed In Armory in Pearland and  became the target of an investigation involving the trafficking of firearms to Mexico. The investigation revealed he allegedly sold multiple firearms to a felon on numerous occasions, including a .50 caliber rifle.

Also taken into custody on related charges were Isaac Rodriguez, 25, Israel Chapa Jr., 24, and Steve Baranowski, 23, all of Houston; and Ashley Giddens, 26, Humble. They are also expected to make appearances in federal court later today.

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

The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorneys Jennifer Stabe and Lisa M. Collins 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.

HOUSTON – A 20-year-old resident of Houston has received a major federal sentence following his convictions on four counts of aiding and abetting interference with commerce by robbery and three counts of brandishing a firearm during and in relation to a crime of violence, announced U.S. Attorney Ryan K. Patrick.

Jamal Tyrea Allen pleaded guilty Jan. 31, admitting to four robberies that occurred in April 2018 and the related firearms offenses.

Today, U.S. District Judge Keith P. Ellison ordered Allen to serve a total of 48 months for his role in the robberies. He also received an 84-month sentence for the first firearms charge and another 168 months for the subsequent brandishing charges to be served consecutively to each other and the other term imposed. The total 25-year prison sentence will be immediately followed by five years of supervised release.

On or about April 9, 2018, Allen entered the Metro PCS located on Long Point Road in Houston where he pointed a pistol at an employee. He took money from the register and demanded to know where iPhones were located. The employee said they were out, and Allen eventually fled with the cash.

Five days later, he entered another Metro PCS on Woodforest Boulevard and again pointed a firearm at another employee, demanding iPhones. When the cashier said he did not know where they were, Allen chambered a round into the firearm and continued making demands. He found the phones, then fled with them as well as stolen cash.

Allen robbed another Metro PCS April 24, 2018, where he also made violent threats. He walked into the Little York Road location, pulled out a handgun and pointed it at a female employee, stating “You need to find me money or I am going to kill you.” When she informed him they did not have any iPhones, he got increasingly angry and threatened to kill her. She gave him money from the cash register while he was still pointing his firearm and making death threats.

Finally, on April 27 the same year, he arrived at Metro PCS on Airline Drive and made similar demands and threats. There, he pointed a firearm to the head of an employee, saying he was not playing and that he would shoot him. Once a second cashier entered the lobby, Allen made them get money from the cash register and forced both to the store’s back room at gunpoint.

After leaving the store, law enforcement stopped Allen, found the money and iPhones in the car and took him into custody.   

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

The FBI and Houston Police Department conducted the investigation. Assistant U.S. Attorney Jill Stotts is prosecuting the case.

BROWNSVILLE, Texas – A 51-year-old man is set to appear in federal court on charges of money laundering and conspiracy to possess with intent to distribute cocaine, announced U.S. Attorney Ryan K. Patrick.

Edgardo Serrano, New Boston, Michigan, will make an appearance before U.S. Magistrate Judge Ignacio Torteya III at 10:30 a.m. today.

The criminal complaint charging Serrano was filed April 18. It alleges that authorities had searched a mechanics shop in Hidalgo April 17, which resulted in the discovery of $1.7 million hidden in a commercial tractor. The investigation revealed Serrano had been driving the vehicle, according to the charges.

The complaint further alleges Serrano was in the Rio Grande Valley to pick up a load of carrots, but it appeared to be a cover for what was actually a cocaine shipment destined for Florida.

The hidden cash was allegedly the proceeds of the illegal narcotics sales in Florida.

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

Immigration and Customs Enforcement’s Homeland Security Investigation and the Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorney Karen Betancourt is prosecuting the case.  

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

McALLEN, Texas – A 24-year-old Honduran man has been charged with physically assaulting a Starr County Detention Center (SCDC) officer who was performing official federal duties, announced U.S. Attorney Ryan K. Patrick.

Jose Humberto Ordonez made his initial appearance before U.S. Magistrate Judge Scott Hacker this morning, at which time he was ordered to remain in custody pending further criminal proceedings.

Ordonez was convicted in 2019 for possession with intent to distribute approximately 211 kilograms of marijuana and has been in custody at the SCDC in Rio Grande City pending his sentencing. The criminal complaint alleges that in April 2020, officers had responded to an incident in Ordonez’s cell where he did not comply with commands and had become combative. Ordonez allegedly repeatedly struck and punched an SCDC officer in the face with a closed fist. The officer suffered a fractured nose and other injuries and was transported to a hospital, according to the charges.

Ordonez is set for sentencing on his drug trafficking conviction and is pending sentencing before U.S. District Judge Ricardo Hinojosa, at which time he faces up to 40 years in federal prison. If convicted of the new charges, he faces an additional 20 years and a possible $250,000 maximum fine.

The U.S. Marshals Service, FBI and Starr County Sheriff’s Office are conducting the investigation. Assistant U.S. Attorney Matthew Redavid is prosecuting the case.

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

HOUSTON – William Marsh Rice University has paid the United States more than $3.7 million to resolve claims it engaged in a pattern and practice of improperly charging National Science Foundation (NSF) research and development awards, announced U.S. Attorney Ryan K. Patrick.

Congress created the independent federal agency in 1950 “to promote the progress of science; to advance the national health, prosperity, and welfare; to secure the national defense...”

NSF funds support approximately 24% of all federally-supported basic research that colleges and universities conduct in the United States. As of March 2020, Rice had 215 active NSF research grants. University grantees, including Rice, carry out NSF-sponsored research under uniform administrative rules. They specify an expense may only be charged to an award if it is allocable - if it is incurred specifically for the award, if it benefits the award or if it is necessary to the overall operation of the awardee and is assigned in part to NSF in accordance with the other award terms and conditions. 

In 2016, authorities began an investigation of Rice’s suspected misuse of NSF grant funds. Specifically, Rice allegedly budgeted for graduate student stipends in its research grant proposals but then used a portion of the money to pay the students to perform teaching duties unrelated to the NSF awards.

As an NSF grant awardee, Rice falsely certified on each proposal, and each time it requested a payment under the grant, that it was complying with NSF award terms and conditions. Those terms and other applicable regulations require each grant recipient adhere to specific federal cost principles which state that costs must be necessary, reasonable and allocable to be properly charged to an award. Rice knowingly failed to follow these requirements.

From Nov. 18, 2006, through Sept. 30, 2018, Rice knowingly engaged in a pattern and practice of improperly charging graduate students’ stipends, tuition remission and related facilities and administrative charges to NSF awards. These charges were actually used in part for time the graduate students spent performing teaching duties unrelated to Rice’s NSF research and development awards. The activities were not specifically incurred for the research awards, did not benefit those awards and otherwise were not allowable or allocable to the NSF awards, in violation of NSF award terms and conditions and the False Claims Act.  

To settle the allegations, Rice has agreed to pay $$3,754,186– double the loss to the United States.

“The NSF is a strong supporter of basic research at colleges and universities,” said Allison Lerner, NSF Inspector General. “However, the Agency expects grant recipients to follow the federal cost principles. Expenses charged to grants must be allowable, allocable and reasonable. I commend the U.S. Attorney’s Office for their work on upholding federal grant rules in this case.”

The settlement resolved the claims without a determination of liability.

The NSF – Office of Inspector General conducted the investigation. Assistant U.S. Attorney Jill Venezia and Andrew Bobb handled the matter.

HOUSTON – Federal authorities are cautioning taxpayers that criminals could steal economic impact payments through various means of deception, announced U.S. Attorney Ryan K. Patrick along with Acting Special Agent in Charge Rodrick Benton of IRS – Criminal Investigation (CI).

Everyone receiving a COVID-19 related economic impact payment from the government is at risk.

“Disasters create openings for crooks and scam artists,” said Patrick. “From phony door-to-door solicitations to complex computer and phone scams, I want people to be alert. Do not give out personal information to people who claim they are with the government. The scum that take advantage at a time like this will find the weight of federal law enforcement on them.”

“While the nation deals with the COVID-19 pandemic, criminals see an opportunity to enrich themselves through fraudulent schemes,” warned Benton. “With the public’s awareness, we can combat these scammers and cease their exploitation of the American taxpayer during these trying times.”

COVID-19 economic impact payment checks will be on their way from the IRS in a matter of weeks. For most Americans, this will be a direct deposit into their bank accounts. Those that did not identify a bank account on their tax returns,  elderly individuals or others who have traditionally received tax refunds via paper check will receive their payments in that manner.

Criminals have already begun deceiving taxpayers through unsolicited phone calls, emails, text messages or other communications purporting to be from the IRS in attempts to steal these payments. Authorities warn taxpayers to be vigilant and on alert to this potential fraud.

• The IRS will deposit your check into the direct deposit account you previously provided on your tax return (or, in the alternative, send you a paper check).
• The IRS will NOT CALL and ask you to verify your payment details. Do NOT give out your bank account, debit account or PayPal account information – even if someone claims it’s necessary to get your check. IT’S A SCAM!
• If you receive a call, do NOT engage with scammers or thieves, even if you want to tell them that you know it’s a scam or you think that you can beat them. Just HANG UP.
• If you receive texts or emails claiming you can get your money faster by sending personal information or clicking on links, DELETE them. Do NOT click on any links in those emails or texts.
• Bogus checks are also being distributed. If you receive a “check” in the mail now, IT’S A FRAUD – it will take the Department of Treasury a few weeks to mail the legitimate checks to taxpayers. If you receive a “check” for an odd amount (especially one with cents), a check that requires that you verify the check online or by calling a number, IT’S A FRAUD.

For more information about coronavirus tax relief and economic impact payments, visit the IRS website.

For more information about coronavirus fraud overall and related details, go to the DOJ website.

McALLEN, Texas – A 35-year-old resident of Mexico City, Mexico, has entered a guilty plea to bulk cash smuggling, announced U.S. Attorney Ryan K. Patrick.

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

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 his plea today, 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.

As part of the terms of the plea agreement, the $570,247 will be forfeited to the United States.

U.S. District Judge Randy Crane will impose sentencing June 16. At that time, Ruiz-Periban faces up to five years in prison and a maximum $250,000 possible fine. He has been and will remain in custody pending that hearing.

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

HOUSTON – A federal indictment has been unsealed against a 44-year-old woman for making false statements to federal authorities, announced U.S. Attorney Ryan Patrick. 

A Houston federal grand jury returned the two-count indictment against Summer Worden, of Wichita, Kansas, Feb. 27. She is expected to make her initial appearance before U.S. Magistrate Judge Dena H. Palermo April 13. 

The charges allege Worden made false statements to NASA - Office of Inspector General (OIG) and the Federal Trade Commission (FTC).

According to the indictment, Worden maintained multiple bank accounts at USAA Federal Savings Bank. She allegedly shared access to her online accounts with a commissioned officer in the U.S. Army on detail to NASA’s Johnson Space Center who had access until at least Jan. 31, 2019. 

The indictment alleges Worden filed a complaint with the FTC, alleging the officer had improperly accessed her bank account. She claimed she had opened a new account in September 2018 and reset her login credentials in order to prevent the individual from accessing her accounts, according to the charges. However, the indictment alleges she actually opened the account in April 2018 and did not change her login credentials until January 2019. 

The indictment charges Worden with making false statements on two occasions. She allegedly filed the false complaint March 19, 2019, with the FTC and later made a false statement in an interview with NASA-OIG July 22, 2019.

If convicted, Worden faces up to five years in prison on each count and a possible  $250,000 maximum fine.

NASA-OIG and FTC conducted the investigation. Deputy Chief Ted Imperato and Assistant U.S. Attorney John Pearson 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.

As a temporary measure due to COVID-19 concerns, service on the United States Attorney shall be made via both email and US mail as follows:

A copy of any filing requesting relief affecting a lien or claim of the United States shall be emailed to usatxs.bankruptcy@usdoj.gov.  A paper copy shall also be mailed to the Civil Process Clerk, United States Attorney’s Office, 1000 Louisiana, Suite 2300, Houston, TX 77002. Hand delivery may not be accepted. 

E-mail delivery will not deemed complete until receipt is acknowledged by e-mail from the U.S. Attorney’s Office for the Southern District of Texas.  This emergency accommodation will expire when the U.S. Bankruptcy Court lifts its public health and safety protocols.

Ryan K. Patrick
United States Attorney

On March 13, 2020, President Donald J. Trump declared the outbreak of COVID-19 (the coronavirus) in the United States to be a national emergency. Unfortunately, criminals and scammers are trying to take advantage of the crisis for their own profit. The U.S. Attorney’s Office for the Southern District of Texas through its United States Attorney, Ryan Patrick, has made it a top priority to detect, investigate, and prosecute anyone who attempts to exploit the anxiety and uncertainty surrounding the COVID-19 outbreak to defraud other people. 

For example, there are reports of fraudsters falsely claiming to be from legitimate health organizations, selling fake medicines, vaccines, tests, medical supplies, and using phishing scams to steal personal and financial information. Please don’t fall victim to these frauds and crimes. If you see these frauds being attempted or if you are a victim of one of these frauds, please report them to: 

National Center for Disaster Fraud (NCDF)  
Telephone hotline:1-866-720-5721 
Email address:disaster@leo.gov  

Federal Bureau of Investigation (FBI):  Submit a complaint online at https://tips.fbi.gov/  
For cyber or internet related scams, submit your complaint at https://www.ic3.gov/default.aspx  
Telephone:713-693-5000, 

Southern District of Texas COVID-19 Fraud Coordinator, Assistant U.S. Attorney Justin R. Martin 
Telephone:713-567-9000 
Email:USATXS.Covid19@usdoj.gov 

Please be on the lookout for any of these COVID-19 scams:  

• Treatment scams: Scammers are selling fake vaccines, medicines, and cures for COVID-19. 
• Supply scams: Scammers are claiming they have in-demand products, like cleaning, household, health, and medical supplies, but when an order is placed, the scammer takes the money and never delivers the order. 
• Charity scams: Scammers are fraudulently soliciting donations for non-existent charities to help people affected by the COVID-19 crisis. Scammers often use names that are similar to the names of real charities. The FTC offers tips for avoiding charity scams: https://www.consumer.ftc.gov/features/how-donate-wisely-and-avoid-charity-scams 
• Phishing scams: Scammers, posing as national and global health authorities, such as the World Health Organization (WHO) and the Centers for Disease Control and Prevention (CDC), are sending fake emails or texts to trick the recipient into sharing their personal information like account numbers, Social Security numbers, or login IDs and passwords. The FTC offers tips for avoiding phishing scams: https://www.consumer.ftc.gov/articles/how-recognize-and-avoid-phishing-scams 
• App scams: Scammers are creating COVID-19 related apps that contain malware designed to steal the user’s personal information after it is downloaded. 
• Provider scams: Scammers pretending to be doctors and hospitals that have treated a friend or relative for COVID-19, and demand payment for that treatment. 
• Investment scams: Scammers are promoting the stock of small companies, which have limited publicly available information, using false or misleading claims that the companies’ stock will increase dramatically due to the COVID-19 outbreak, such as claims that a company can prevent, detect, or cure COVID-19.  

For the most up to date information on the COVID-19 outbreak and the federal response, check https://www.cdc.gov/coronavirus/2019-ncov/index.html 

HOUSTON – A 29-year-old former Katy resident has been ordered to prison for conspiring to compel three adult women to engage in sex trafficking by means of force and violence in Houston and other locations across the country, announced U.S. Attorney Ryan K. Patrick.

Marquis Holmes aka Goldie pleaded guilty June 13, 2019, to one count of conspiracy to engage in sex trafficking by means of force, fraud and coercion; two counts of transportation to engage in prostitution; and two counts of enticing and coercing another to travel in interstate commerce for prostitution.

Today, U.S. District Judge Sim Lake sentenced Holmes to 420 months for the conspiracy as well as 120 months and 240 months for the transportation and enticement convictions, respectively. The sentences will all run concurrently for a total 420-month-term of imprisonment. The court also heard from one of Holmes’ victims who described how he forced her to earn $1500 per day or suffer severe consequences. She described how Holmes physically assaulted her, which included kicking and whipping her repeatedly with a thick belt in order to exert his control. She said Holmes was amused during moments when he would physically assault her. The victim also detailed the paranoia, fear and depression she suffered for years after leaving Holmes.

In handing down the sentence, the court noted the heinous and violent nature of Holmes’ crimes. He will serve 20 years on supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. Holmes will also be ordered to register as a sex offender.

From June 2015 until his arrest in March 2018, Holmes scoured social media websites to recruit women, often under false pretenses, to work as prostitutes for him. Under threat of violence and actual violence, Holmes prostituted two of these women in Houston and Austin; New Orleans, Louisiana; Memphis, Tennessee; Pittsburgh, Pennsylvania; Mississippi; Alabama; South Carolina and other locations across the country. Holmes coerced the women to pose for pictures used in online advertisements for sex and to engage in commercial sex acts for money. Holmes collected all the money the women earned. 

On March 30, 2018, authorities arrested Holmes, at which time they rescued a third victim whom he had kidnapped in his residence along with her infant child. While raping her daily, Holmes forced her to solicit commercial sex dates along the 1.3 mile stretch of Bissonnet Street, commonly referred to as “The Track,” while he kept close tabs on her and her infant child. If she did not meet the monetary quota Holmes had set, he beat her and deprived her of food.  

Holmes 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 Human Trafficking Rescue Alliance (HTRA) conducted the investigation.

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

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

Assistant U.S. Attorneys Sebastian Edwards and Carrie Wirsing prosecuted this case.

McALLEN, Texas – A 21-year-old resident of Weslaco and former employee of the East Hidalgo Detention Center has been taken into custody, announced U.S. Attorney Ryan K. Patrick. 

A McAllen grand jury returned an indictment March 10 charging Amber Estrada. She is expected to make her initial appearance March 16 at 11:30 a.m. before U.S. Magistrate judge Peter E. Ormsby.

According to the charges, federal authorities discovered various forms of contraband approximately January 2019 in the East Hidalgo Detention Center, a correctional facility under contract with the U.S. Marshals Service. The indictment alleges Estrada accepted things of value in exchange for bringing contraband into the detention center while employed as a correctional officer.

She is no longer employed at the facility.

Six others have also been charged related to crimes committed while employed at the East Hidalgo Detention Center.   

If convicted, Estrada faces up to 15 years in federal prison as well as a possible $250,000 maximum fine.

The U.S. Marshals Service, Department of Justice - Office of Inspector General and FBI conducted the joint investigation. 

Assistant U.S. Attorneys Patricia Cook Profit and Amy L. Greenbaum 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.

A federal jury sitting in Houston, Texas, found a pharmacist guilty Tuesday of charges related to health care fraud, wire fraud and money laundering.

After a six-day trial, George Phillip Tompkins, 75, of Houston, Texas, was convicted on all charges - one count each of conspiracy to pay and receive kickbacks, conspiracy to commit health care fraud, conspiracy to commit money laundering as well as 11 counts of health care fraud and three counts of wire fraud.

According to evidence presented at trial, Tompkins and others billed the federal government approximately $21.8 million for medically unnecessary compound gels and creams that were predicated on illegal kickback payments. The jury heard that Tompkins and Anoop Chaturvedi, 48, a legal permanent resident from India, created a scheme to generate compounded pain cream prescriptions and bill health care programs for injured state and federal employees. As part of the scheme, Tompkins and Chaturvedi created a separate entity - Wellington Advisors - to receive the program money from the Department of Labor (DOL) - Office of Workers Compensation Programs and Federal Employees Compensation Act.

Evidence introduced at trial showed that Tompkins sought to disguise illicit kickback payments as legitimate “marketing” expenses and continued to ship patients compound gels and creams even after patients repeatedly complained they did not want them.

U.S. District Judge Sim Lake of the Southern District of Texas presided over the trial and set sentencing for May 27.

Tompkins’ wife Marene Kathryn Tompkins, 68, of Houston, pleaded guilty in January 2020 to one count of conspiracy to pay kickbacks and is also awaiting sentencing. Chaturvedi is considered a fugitive and a warrant remains outstanding for his arrest in connection with the charges. Anyone with information about his whereabouts is asked to contact the U.S. Postal Service - Office of Inspector General (OIG) at 1-888-877-7644. He is presumed innocent unless convicted through due process of law.

USPS – (OIG), DOL – OIG, IRS-Criminal Investigation, Department of Homeland Security – OIG and U.S. Department of Veterans Affairs – OIG conducted the investigation. Trial Attorneys Andrew Pennebaker and Sara Clingan of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Julie Redlinger are prosecuting the case. 

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

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

HOUSTON – Millennium Physicians Association PLLC has paid the United States $1,248,964 to resolve claims that they improperly billed the Medicare program for sleep studies, announced U.S. Attorney Ryan K. Patrick. 

“Providers must adhere to the Medicare rules and regulations if they wish to participate in the program,” said Patrick. “The rules safeguard patients and keep providers accountable to taxpayers.”

“Providers using improperly credentialed technicians are cheating the taxpayers and may put beneficiaries at risk,” said Joseph Martin, Acting Special Agent In Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Along with our law enforcement partners, we will continue to guard the integrity of government health care programs.”

Millennium is based in The Woodlands and owns and operates two sleep centers in the Houston area doing business as Millennium Respiratory & Sleep Disorder Specialists.

The investigation began following the Jan. 4, 2018, filing of a whistleblower lawsuit. Millennium employed the whistleblower who alleged the company conducted sleep studies without the presence of properly credentialed technicians.

Medicare rules and guidelines require that properly-trained and certified sleep technicians administer sleep studies. However, the investigation revealed that from Jan. 8, 2015, through March 13, 2019, Millennium improperly billed and received payment for sleep tests when they did not have the required personnel present.

Medicare rules and guidelines also require facilities to be accredited or certified by the America Academy of Sleep Medicine, Joint Commission or Accreditation Commission for Health Care Inc. Millennium self-reported that from 2011 through 2019, two of its sleep test facilities did not have such accreditation or certification.  

The United States contended Millennium violated False Claims Act (FCA) by knowingly submitting, or causing to be submitted, false claims to Medicare for payment for sleep studies performed at these unaccredited sleep centers.

Under the FCA, a private party (relator) can file an action known as a qui tam on behalf of the United States and receive a portion of the recovery. In this case, the relator received $187,344 as a result of the settlement.

The U.S. Attorney’s Office, Department of Health and Human Services - Office of Inspector General and FBI conducted the investigation. Assistant U.S. Attorney Jill Venezia handled the matter.

The settlement resolved the claims without a determination of liability.

McALLEN, Texas – A 22-year-old Mexican national has been ordered to prison following his conviction of attempting to export firearm magazines, announced U.S. Attorney Ryan K. Patrick.

Ociel Ambrosio Ramirez-Ramirez pleaded guilty Dec. 30, 2019. 

Today, U.S. District Judge Micaela Alvarez sentenced Ramirez-Ramirez to 52 months in federal prison. Not a U.S. citizen, he is expected to face removal proceedings following his release from prison.

In handing down the sentence, the court noted the type and sheer quantity of the firearm magazines Ramirez-Ramirez smuggled to be particularly troublesome. Judge Alvarez recognized the violence south of the U.S. border and how drug trafficking organizations often rely on individuals like Ramirez-Ramirez to provide weapons or ammunition from the United States.

On Oct. 13, 2019, Ramirez-Ramirez attempted to export 1,057 AK-47 magazines and six 1911-style .38 super magazines from the United States into Mexico through the Hidalgo Port of Entry. At the time of his arrest, Ramirez-Ramirez informed agents he maintained a storage unit in Hidalgo. Law enforcement subsequently searched it and discovered numerous empty boxes of ammunition, gun cases and a 7.62x39mm round of ammunition therein.

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

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

BROWNSVILLE, Texas - A 29-year-old Laguna Heights man has been ordered to federal prison for possessing more than 500 images of child pornography, announced U.S. Attorney Ryan K. Patrick.

Ramon Marin Jr. pleaded guilty Dec. 18, 2019.

Today, U.S. District Judge Rolando Olvera Jr. ordered him to serve 80 months in federal prison. Marin was further ordered to pay $18,000 in restitution to several known victims and will serve 20 years on supervised released following completion of his prison term, during which he will have to comply with numerous requirements designed to restrict his access to children and the internet. He has also been ordered to register as a sex offender.

On or about April 29, 2019, authorities began an undercover investigation of ongoing child exploitative crimes on the internet through the use of peer-to-peer software. They identified an IP address making child pornography available for sharing which led them to Marin’s residence. Law enforcement executed a search warrant which resulted in the seizure of various digital devices containing child pornography.

A forensic analysis revealed 539 images and 11 videos of child pornography. The Images included sexual exploitation of minors and toddlers.

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

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

HOUSTON – A federal jury sitting in Houston has convicted a 24-year-old after hearing how he threatened two young girls and required them to engage in commercial sex, announced U.S. Attorney Ryan K. Patrick.

They deliberated for approximately two and a half hours before convicting Romello Lee, 24, Houston, following less than two days of trial. He was convicted on one count of trafficking a minor for commercial sex and one count of trafficking a minor by force for commercial sex.

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

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

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

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

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

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

U.S. District David Hittner presided over the trial and set sentencing for May 29. At that time, Lee faces a mandatory minimum of 10 years and up to life in prison for the sex trafficking of a minor as well as at least 15 years and up to life for the trafficking of minor by force.  

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

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

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

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

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

HOUSTON – A 49-year-old former charter school teacher has been ordered to federal prison following his convictions for coercion and enticement of a child and possession of child pornography, announced U.S. Attorney Ryan K. Patrick.

Christopher Emerson, Katy, pleaded guilty Oct. 23, 2019. 

Today, U.S. District Judge Sim Lake ordered Emerson to serve a 120 months for each of the convictions. The sentences will run concurrently. He will also serve 10 years on supervised released following completion of his prison term, during which he will have to comply with numerous requirements designed to restrict his access to children and the internet. He has also been ordered to register as a sex offender.

On or about June 7, 2018, authorities were conducting an undercover investigation of ongoing child exploitative crimes on the internet through the use of peer-to-peer software. The investigation led them to an IP address making child pornography available for sharing.

They downloaded 14 videos with file names that included toddlers, 4-year-old and 9-year olds from that IP address depicting child pornography. In several of the videos, minors under the age of 8 and 12 are caused to engage in sexually-explicit conduct including oral penetration of a minor male by an adult male’s penis.

The IP address returned back to Emerson at an address in Katy.

On June 22, 2018, law enforcement executed a search warrant at his home where they learned he was living with a minor female relative and his wife. They also seized a laptop and interviewed the child. At that time, she indicated Emerson had caused her to touch his penis was she was 6 or 7 years old.

Authorities further learned of a video of the young female, naked, in her bedroom after exiting the shower that available on Emerson’s computer media. Emerson collected and filed this video along with other child pornography videos on his computer.

He attempted to rationalize his creation of the video by claiming he set up his cell phone in the minor’s bedroom to catch her taking nude photos of herself. He claimed she was sending them to others, but the investigation revealed she had not done so.

At the time of the search, law enforcement also seized the laptop. Forensic analysis revealed he possessed one image and 34 videos of child pornography. One particular video included a minor female under the age of 5.  

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

The FBI conducted the investigation.

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

McALLEN, Texas – A construction company owner has admitted guilt in connection to his participation in a financial fraud scheme, announced U.S. Attorney Ryan K. Patrick.  

Today, Delfino Gaona, 47, McAllen, pleaded guilty to one count of conspiring to defraud the United States and one count of failing to file a currency transaction report by a non-financial trade or business. As part of the plea, he also agreed to a criminal forfeiture of $2,587,821.66.

Gaona was the owner of Keystone Construction, based in Mission. From Dec. 1, 2014, through Nov. 14, 2018, he accepted over $10,000 in approximately 13 separate real estate transactions. However, he failed to file an IRS Form 8300 with the Secretary of the Treasury for each of the transactions. As part of his plea, he admitted to receiving more than $2.5 million and structuring the transactions and falsifying receipts in an effort to evade the reporting requirement.

Under federal law, any non-financial trade or business that received more than $10,000 in cash in one transaction or two or more related transactions must file an IRS Form 8300.  

U.S. District Judge Micaela Alvarez will impose sentencing June 24. At that time, Gaona faces up to 10 years in federal prison and a possible $500,000 maximum fine for failing to file a currency transaction report. He also faces up to five years conspiracy to defraud the United States and a possible $250,000 maximum fine.  

The FBI – Complex Financial Crimes Task Force conducted the investigation with the assistance of the Drug Enforcement Administration, Texas Department of Public Safety, Texas Department of Insurance Fraud Unit, Hidalgo County Sheriff’s Office and police departments in McAllen and Pharr. Assistant U.S. Attorney Roberto Lopez Jr. is prosecuting the case.

A Bangladeshi national formally residing in Tapachula, Mexico, pleaded guilty for his role in a scheme to smuggle aliens from Mexico into the United States.

Mohamad Milon Hossain, 39, admitted that from March 2017 to June 2019, he conspired to bring, and brought, Bangladeshi nationals to the United States at the Texas border in exchange for payment.  Hossain operated out of Tapachula, Mexico, where he maintained a hotel that housed aliens on their way to the United States.  Hossain provided plane tickets and other assistance for the aliens to travel from Tapachula to Monterrey, Mexico where co-conspirator Moktar Hossain assisted their illegal crossing into the United States. 

U.S. District Judge Diana Saldana accepted the guilty plea.  Sentencing has not been scheduled.

“Hossain’s brazen scheme to smuggle Bangladeshi aliens into the United States put our national security at risk,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division.  “This guilty plea underscores the Department’s commitment to working with our law enforcement partners here and abroad to disrupt the flow of illegal aliens into the United States and bring human smugglers to justice.”

“Border Security is national security,” said U.S. Attorney Ryan K. Patrick of the Southern District of Texas.  “Our DHS law enforcement partners work on both sides of the border to make sure it is secure. The Southern District of Texas is on the front line of the fight against illegal immigration and we will continue to lead the nation in doing so.”

“This plea is a clear statement that defendants who smuggle illegal aliens across the United States border for profit will face consequences in a U.S. courtroom,” said Special Agent in Charge Shane Folden of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) San Antonio.  “HSI remains committed in aggressively investigating and prosecuting members of transnational criminal organizations that exploit and endanger the people they smuggle into the United States.  We will continue to work with our law enforcement partners both domestic and international to maintain the integrity of our border and the safety of our communities.”

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

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

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

CORPUS CHRISTI, Texas – A tax preparer has admitted her guilt for tax crimes involving fraudulent customer returns that happened over a four-year period, announced U.S. Attorney Ryan K. Patrick.

Jeanneth Iliana Escobedo was in the business of preparing income tax returns for clients under the name of BizTax, which began its business in Brownsville and later added offices in Harlingen and Corpus Christi.

Today, she pleaded guilty to one count of willfully aiding and assisting in the preparation of a false income tax return. That return included excessive deductions for medical expenses, unreimbursed employee expenses and other expenses. The false claims increased her refund to $15,405, more than what she was supposed to receive.    

As part of the plea, she also admitted to claiming similar false items on income tax returns for other clients during income tax years 2010 through 2014 and to helping other BizTax tax preparers doing the same for their customers.

Escobedo admitted the total intended tax loss was approximately $342,000.

U.S. District Judge Nelva Gonzales Ramos will impose sentencing June 10. At that time, she faces up to three years in federal prison. She has agreed to pay the IRS $150,000 in restitution.

She was permitted to remain on bond pending that hearing.

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

LAREDO, Texas – Two men from Irving are set to appear in court for assaulting Customs and Border Protection (CBP) officers, announced U.S. Attorney Ryan K. Patrick.

The Laredo grand jury returned the indictment Feb. 25 against Juan Alfredo Crisencio Martinez, 20, and Jaythan Trevonne Phillips, 20. They are set to appear before U.S. Magistrate Judge Diana Song Quiroga at 1 p.m. today.

They are all charged with forcible assault on an officer Feb. 8.

The incident began after they applied for admission into the United States at the Juarez-Lincoln International Bridge in Laredo, according to the charges. A CBP officer allegedly began to conduct an immigration inspection and asked them to exit the vehicle. They refused, according to the allegations.

The charges allege authorities swarmed the lane to apprehend the occupants. At that time, Martinez allegedly reached for the officer’s belt from inside the vehicle. He also opened the driver’s side door in order to prevent a responding officer from assisting, according to the allegations.

Law enforcement allegedly had to physically carry Phillips to the secondary inspection area.

Martinez continued to resist, according to the allegations. Law enforcement allegedly had to deploy a Taser in order to subdue him.

The charges allege the incident significantly impacted the port’s daily operation, because officers from passenger booths, secondary inspection and bus operations had to assist. Most of the travel lanes were closed until they could resolve the incident, according to the allegations. The bus traffic was allegedly backed up into the Mexico side of the bridge which caused stalls and ultimately delayed dozens of passengers.

If convicted, Martinez and Phillips face up to 20 years in federal prison and a possible $250,000 maximum fine.

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

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

LAREDO, Texas – A 30-year-old citizen of Nuevo Laredo, Tamaulipas, Mexico, has pleaded guilty to conspiring to import 10.5 kilograms of meth into the United States, announced U.S. Attorney Ryan K. Patrick.

On Dec. 10, 2019, J. Guadalupe Martinez-Montelongo drove an SUV to the Juarez-Lincoln International Bridge in Laredo. There, a K-9 alerted to the possible presence of narcotics within the vehicle’s doors. Following a subsequent X-ray examination, authorities located 21 bundles stuffed behind the door panels which tested positive for meth.

The drugs weighed approximately 23 pounds and have a street value of over $73,000.

U.S. District Judge Marina Garcia Marmolejo will impose sentencing June 17 at 10 a.m. At that time, Martinez-Montelongo faces up to life in federal prison. He has been and will remain in custody pending that hearing.

The Drug Enforcement Administration conducted the investigation with the assistance of Customs and Border Protection. Assistant U.S. Attorney Paul A. Harrison is prosecuting the case.

CORPUS CHRISTI – A federal jury sitting in Corpus Christi has convicted a 59-year-old Mission man for smuggling two illegal aliens within the United States, announced U.S. Attorney Ryan K. Patrick.

The jury deliberated for approximately one hour before convicting Emiliano Espinoza-Guajardo following a two-day trial.

During trial, the jury heard that on Oct. 15, 2019, Espinoza-Guajardo drove a Buick Rendezvous to the Border Patrol (BP) checkpoint near Falfurrias. When authorities approached his vehicle for an immigration inspection, he displayed signs of nervousness. Law enforcement requested and received consent to open the back door of vehicle, at which time they discovered two men on the floorboard of the backseat attempting to conceal themselves.

Both men were found to be illegally present in the United States.

The jury heard from both men who had each identified Espinoza-Guajardo as the driver. They testified that Espinoza-Guajardo instructed them to remain quiet and hide before arriving at the checkpoint. One of the individuals stated that he also gave Espinoza-Guajardo his Ecuadorian passport for safe keeping.

The defense attempted to convince the jury Espinoza-Guajardo did not know the people he was driving were illegally present in the United States. He also claimed to be a high priest who could do no wrong. They did not believe his claims and found him guilty as charged.

Senior U.S. District Judge Hayden Head presided over the trial and set sentencing for June 10. At that time, Espinoza-Guajardo faces up to five years in prison and a possible $250,000 maximum fine.

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

United States Border Patrol conducted the investigation. Assistant U.S. Attorneys Jeremy Carl Fugate and Barbara De Pena are prosecuting the case.  

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

Helen Garza, 43, Rio Grande City, and Herminia Cantu-Garcia, 43, Roma pleaded guilty today and Feb. 26, respectively.

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

Garza admitted she knew there were drugs in the car.

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

U.S. District Judge Randy Crane accepted the pleas and has set sentencing for May 4 and 12 for Cantu-Garcia and Garza, respectively. At that time, both women face up to life in federal prison and a possible $10 million fine.

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

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

LAREDO, Texas – A 49-year-old Carrizo Springs resident has been ordered to federal prison following his conviction for conspiring to possess with the intent to distribute more than 300 kilograms of marijuana, announced U.S. Attorney Ryan K. Patrick.

Vicente Guajardo-Cantu pleaded guilty Nov. 4, 2019.

Today, U.S. District Judge Marina Garcia Marmolejo sentenced Guajardo-Cantu to serve a 60-month term of imprisonment to be immediately followed by four years of supervised release.

Guajardo-Cantu worked as a truck driver with a North Dakota commercial driver’s license. On Sep. 16, 2017, he arrived at the U.S. Highway 83 checkpoint driving his tractor-trailer. During an initial inspection, a K-9 alerted to the trailer he was hauling. There, authorities ultimately found 28 cellophane bundles of marijuana hidden inside the trailer.

Further investigation also revealed he presented a fraudulent bill of landing during the primary inspection.

The drugs weighed a total of 312 kilograms (688 pounds) with a street value of approximately $200,000.

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

The Drug Enforcement Administration and Border Patrol conducted the investigation. Assistant U.S. Attorney Francisco J. Rodriguez prosecuted the case.

CORPUS CHRISTI, Texas – A 43-year-old former resident of San Antonio has been ordered to federal prison following his conviction for conspiring to possess with the intent to distribute meth, announced U.S. Attorney Ryan K. Patrick.

U.S. District Judge Nelva Gonzales Ramos convicted Lawrence James Espree Oct. 11, 2019, following a one-day trial.   

Today, Judge Ramos ordered Espree to serve a total of 200 months in federal prison to be immediately followed by five years of supervised release.

During the trial, the judge heard Espree had hired a drug courier to transport drugs from the Rio Grande Valley to San Antonio. On Feb. 21, 2017, that courier was a passenger on a commercial bus as it approached the Border Patrol checkpoint near Falfurrias. There, authorities found approximately a kilogram of meth strapped to his thighs.

After the courier was arrested, Espree fled the area and evaded arrest until 2019.

During trial, he identified Espree as the person who recruited him to transport the narcotics.

Evidence also established that Espree purchased the courier’s bus ticket using his girlfriend’s email account and his mother’s credit card.

Judge Ramos also heard Espree was leading a narcotics trafficking operation in which he directed another courier. In that incident, authorities also seized an additional kilogram of narcotics from the bus passenger at the Falfurrias checkpoint in January 2017.  

Evidence presented during trial also demonstrated that Espree used numerous firearms and body armor to facilitate his narcotics trafficking.

The defense attempted to convince the court he was not involved. Judge Ramos did not believe those claims and convicted him as charged.

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

Both bus passengers previously pleaded guilty to their roles in the offenses.

The Drug Enforcement Administration conducted the investigation with the assistance of Border Patrol and U.S. Marshals Service. Assistant U.S. Attorney Robert D. Thorpe Jr. and Jeremy Carl Fugate prosecuted the case.

BROWNSVILLE, Texas - A 37-year old South Texas man has been ordered to federal prison following his conviction of possessing child pornography, announced U.S. Attorney Ryan K. Patrick.

Rodolfo Mireles Jr. pleaded guilty May 15, 2019.

Today, U.S. District Judge Rolando Olvera Jr. ordered him to serve 78 months in federal prison. Mireles was further ordered to pay $30,000 in restitution to several known victims and will serve 30 years on supervised released following completion of his prison term, during which he will have to comply with numerous requirements designed to restrict his access to children and the internet. He has also been ordered to register as a sex offender.

On or about Dec. 21, 2017, authorities were conducting undercover operations of ongoing child exploitative crimes on the internet through the use of peer-to-peer software. The investigation led them to an internet protocol address making child pornography available for sharing.

A search warrant at the residence of Mireles resulted in the seizure of various digital devices containing child pornography. A forensic analysis revealed he possessed 343 images and 1,646 videos of child pornography. 

Mireles 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 - Rio Grande Valley Child Exploitation Task Force conducted the investigation

Assistant U.S. Attorneys Ana Cano and Jason Corley 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 federal jury sitting in Houston has convicted a 30-year-old Houston man on 12 counts related to the robbery or attempted robbery of six local banks, announced U.S. Attorney Ryan K. Patrick.

The jury deliberated for two hours before convicting Eric Beverly following a one and a half 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.

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. A cell phone registered to Beverly was used at or near the times of several of the robberies while in the vicinity of the banks. 

Two co-conspirators also identified Beverly in all of the robberies.

U.S. District Judge Lynn N. Hughes presided over the trial and set sentencing for June 1. At that time, Beverly faces up to 20 years in federal prison on each of the bank robbery and attempted bank robbery convictions. He also faces seven years for each conviction for aiding and abetting the brandishing of a firearm to run consecutively to each other and any other sentence imposed.

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

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.

CORPUS CHRISTI, Texas – A 35-year-old resident of Bay City made an appearance in federal court today and admitted he was responsible for killing a protected species, announced U.S. Attorney Ryan K. Patrick.

Leonard Cornelius, 35, of Bay City, Texas, pleaded guilty to killing a Bald Eagle, no longer an endangered species, but still protected under the Bald and Golden Eagle Protection Act. This law makes it a crime to kill, possess, sell, transport, export or import, any bald or golden eagle, alive or dead, including any part, nest, or egg, unless specifically allowed by permit.

Today, U.S. Magistrate Judge Jason B. Libby accepted the plea and ordered Cornelius to serve one year of probation and pay 11,907.50 in restitution to the Texas Parks and Wildlife Department (TPWD). The court found he killed the animal knowingly and with wanton disregard for the consequences of his actions. 

“We work with our state law enforcement partners on information sharing and investigations to effectively protect our nation's wildlife resources,” said Special Agent in Charge Phillip Land of the Fish and Wildlife Service (FWS) - Office of Law Enforcement. “Through the effective enforcement of state and federal laws, we can conserve those trust species in the State of Texas and across the nation for future generations. We would like to thank the Texas Department of Parks and Wildlife and the U.S. Attorney's Office for their assistance in this case."   

On March 22, 2018, authorities located a dead bald eagle and a number of other dead animals that appeared to have been poisoned near a field located southeast of Bay City. They began looking for the source of the poison and encountered Cornelius inspecting nearby farm fields. 

He soon admitted he had placed the poison in his farm fields in order to kill birds that had been damaging his crops. Cornelius admitted he coated approximately 30 pounds of corn with poison. He then spread the corn on several of his fields in order to kill the birds.

He acknowledged seeing dead birds and several dead hogs in the area after he spread the poison.

Laboratory analysis later confirmed poisoned corn caused the bald eagle’s death.

FWS conducted the investigation with assistance of TPWD. Assistant U.S. Attorney Robert D. Thorpe Jr. is prosecuting the case.  

LAREDO, Texas – Two Laredo men have been ordered to federal prison after their involvement in a drug trafficking event, announced U.S. Attorney Ryan Patrick.

Raul Gomez, 36, and Enrique Gonzalez, 39, pleaded guilty Aug. 6, 2019. 

Today, U.S. District Judge Marina Garcia Marmolejo ordered Gomez to serve 87 months in federal prison. At the hearing, the court noted he had prior convictions for burglary, assault, possession of a controlled substance and being a felon in possession of a firearm. In handing down the sentence, Judge Marmolejo explained that during the commission of the instant offense, Gomez could have killed someone during the high speed chase or been killed himself.

Gonzalez was previously ordered to serve 12 months and one day in prison. Gomez and Gonzalez will serve five and four years of supervised release following their prison terms, respectively.  

The investigation revealed a drug trafficking organization would be attempting to transport marijuana. On May 29, 2019, authorities established surveillance in the vicinity of Sereno Drive in Laredo, during which time they observed two vehicles leaving a residence in tandem.

Gomez was driving one of them - a red SUV - which appeared to be weighed down in the rear with items stacked high in the rear seat. Law enforcement attempted to conduct a traffic stop, but he fled at a high rate of speed. The chase continued through Bob Bullock Loop and Mines Road, eventually resulting in a crash. Gomez attempted to flee on foot, but authorities were able to soon apprehend him.

At the time of his arrest, law enforcement discovered d a total of 347 kilograms of marijuana in the back of his vehicle.

Simultaneously, other authorities had conducted a traffic stop on the other vehicle that left the residence on Sereno Drive. They arrested Gonzalez – the driver – who later admitted he had been paid to store the drugs at his home.

Gomez will remain in custody pending transfer to a U.S. Bureau of Prisons (BOP) facility to be determined in the near future. Gonzalez was permitted to remain on bond and voluntarily surrender to a BOP facility to be determined in the near future.

The Drug Enforcement Administration conducted the Organized Crime Drug Enforcement Task Force investigation dubbed Operation The World Is Yours. Assistant U.S. Attorney Christopher Dos Santos prosecuted the case.

LAREDO, Texas – A 40-year-old U.S. citizen and resident of San Nicolas, Nuevo Leon, Mexico, has been ordered to prison after admitting she trafficked a large amount of “ice” meth into the country, announced U.S. Attorney Ryan K. Patrick.

Carolina Alvarez-Lopez pleaded guilty Nov. 1, 2019, to conspiracy to possess with the intent to distribute meth

Today, U.S. District Judge Marina Garcia Marmolejo ordered her to serve a 72-month sentence followed by three years of supervised release. At the hearing, the court heard additional evidence about how she brought the narcotics into the United States from Mexico and the steps she took to avoid detection from law enforcement. In handing down the sentence, the court noted the defendant’s lack of criminal history but stated a significant prison sentence was still warranted.

On March 31, 2019, Alvarez-Lopez entered the Border Patrol checkpoint at mile marker 29 on Interstate 35 north of Laredo driving a 2003 Honda Accord. During primary inspection, a K-9 alerted to the vehicle, after which law enforcement referred her to a secondary inspection. During the search of her vehicle, agents located 35 bundles of “ice” concealed inside its the seats.

The drugs weighed a total of approximately 17.5 kilograms with an estimated street value of more than $1.24 million.

Alvarez-Lopez admitted she knew there were narcotics in her vehicle and expected to be paid $2,000 for transporting them.  

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

Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with assistance from Border Patrol. Assistant U.S. Attorney Anthony J. Evans prosecuted the case.

LAREDO, Texas – A 35-year-old resident of Laredo has been ordered to federal prison after he admitted to conspiring to transport aliens, announced U.S. Attorney Ryan K. Patrick.

John Bryan Meredith pleaded guilty Oct. 4, 2019.

Today, U.S. District Judge Marina Garcia-Marmolejo handed him an 84-month sentence. He had been on supervised release for two prior cases and was further ordered to serve four more years on each. The total 92-month sentence will be followed by another three years of supervised release.

On July 8, Meredith drove a tractor-trailer to the Border Patrol Checkpoint on Highway 83 near Laredo. Soon after, a K-9 alerted to the presence of concealed humans and/or narcotics within the trailer. At secondary inspection, the K-9 alerted again.

Authorities then removed a seal and opened the rear doors of the trailer which revealed several people, all determined to be in the United States illegally. Those included a total of 71 subjects - 36 Mexicans, 21 Guatemalans, six  Salvadorans, five Hondurans and three Brazilians - two of whom were unaccompanied juveniles. In addition, law enforcement also recovered a total of $7,300 hidden inside the gearshift box as well as eight additional seals and seven cellular telephones in the sleeper area of the truck.

Meredith claimed a friend had asked him to drive a tractor-trailer with a load of transmissions to Uvalde, where another driver would meet him. Meredith also stated his friend had already placed the seal on the trailer by the time he arrived.

However, further investigation revealed Meredith had bought the tractor himself and rented the trailer. The investigation revealed he had driven the same tractor and trailer past the Highway 83 checkpoint seven times between May 21 and July 8.

CORPUS CHRISTI, Texas – A 31-year-old Mexican citizen has been ordered to federal prison in money laundering conspiracy, announced U.S. Attorney Ryan K. Patrick

Abraham Barajas-Alcantar, who resided in McAllen, pleaded guilty Nov. 13, 2019. Specifically, he admitted to purchasing three aircraft engines using $272,649 derived from drug trafficking.

Today, U.S. District Judge Hayden Head ordered he serve a total of 57 months in federal prison. Not a U.S. citizen, he is expected to face deportation proceedings following his sentence.

The investigation began in 2015.

Barajas purchased aircraft engines and parts with drug proceeds and shipped them to his business in McAllen. From there, he shipped the merchandise to Mexico for his customers who then used the parts in aircrafts in order to transport drugs.

Drug proceeds were sent to Barajas in the form of bulk cash. He also received them through the funneling of cash deposits via banks in which Barajas had accounts or those to which he had access. This scheme combined the traditional methods of bulk cash smuggling and the use of funnel accounts with trade-based money laundering.  

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

The Drug Enforcement Administration and IRS – Criminal Investigation conducted the investigation. Assistant U.S. Attorney Kenneth Cusick is prosecuting the case.

BROWNSVILLE, Texas – A McAllen woman has been taken into custody following the return of an indictment alleging she made a false statement to authorities in a bribery investigation involving alien detainee roster lists, announced U.S. Attorney Ryan K. Patrick. 

The grand jury returned the indictment under seal Feb. 18 against Cynthia Alanis, 27. She is expected to make her initial appearance before U.S. Magistrate Judge Ignacio Torteya III at 2 p.m. today.

The charge stems from a bribery investigation involving Benito Barrientez, 42, Lyford; Exy Adelaida Gomez, 42, Los Fresnos; and Damian Ortiz, 30, and her brother - McAllen attorney Roel Alanis, 39, both of Weslaco. They were charged with conspiracy to commit bribery and bribery in relation to obtaining alien detainee roster lists.

The indictment against Cynthia Alanis alleges she falsely stated she did not receive nor know of any alien detainee roster lists given to the Alanis law firm. However, the charges allege she had previously received detainee roster lists and also knew of such lists given to the law firm.

Barrientez and Ortiz were employed at the Willacy County Regional Detention Center as a classification clerk and a senior program director, respectively. Gomez was a corrections officer at the El Valle Detention Center. Both facilities are located in Raymondville.

The indictment alleges Barrientes, Ortiz and Gomez obtained alien detainee roster lists from the El Valle Detention Center and the Port Isabel Detention Center-Los Fresnos while employed in their respective capacities.

The lists were then allegedly provided to Roel Alanis, an attorney with a practice in in the Rio Grande Valley. Roel Alanis then allegedly paid money to the employees in return for receiving the lists which contained names, dates of birth, country of origin and A-numbers of alien detainees. The charges allege Roel Alanis would visit the illegal aliens for the purpose of hiring his law firm as their attorney in immigration proceedings. Alternatively, he would instruct his sister or others to do so, according to the charges.  

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

Barrientez and Ortiz have pleaded guilty and are set for sentencing April 29.   

Immigration and Customs Enforcement (ICE) - Office of Professional Responsibility conducted the investigation with assistance from the Department of Homeland Security - Office of the Inspector General and ICE's Homeland Security Investigations. Assistant U.S. Attorney Oscar Ponce 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.

GALVESTON, Texas - A 22-year-old man from Friendswood has received a significant sentence following his convictions for producing and possessing child pornography, announced U.S. Attorney Ryan K. Patrick. 

Malik Berlanga pleaded guilty April 3, 2019. 

Today, U.S. District Judge George C. Hanks Jr. handed Berlanga a sentence of 360 months for the sexual exploitation of a child aka production of child pornography. He also received 120 months for the possession conviction which will run consecutively for a total 40-year-prison sentence. Berlanga will also be on supervised release for life following completion of that 480-month federal prison term.

At the hearing, the court heard that Berlanga’s preferential age was between 5-10 years old and had a foot fetish. In one particular video, Berlanga is seen licking and sucking a minor female’s feet while she is asleep. He then appears to ejaculate off-camera with a semen-like substance then found on her feet. 

At the hearing, the court described other pornographic videos in Berlanga’s possession involving children under the age of five. In handing down the sentence, Judge Hanks noted he had a duty to protect the public and anything less than the term imposed would not have done that.

A cyber-tip submitted to the National Center for Missing and Exploited Children led to the Berlanga’s identification. He had created videos of a minor female and stored them in his Dropbox account. Authorities found 14  child pornography videos in a folder entitled Personal CP that Berlanga produced. 

Law enforcement later conducted a search warrant at his residence, at which time they seized several cellular phones and a laptop computer located within Berlanga’s bedroom. Forensic analysis of those items revealed more than 5000 images and 70 videos containing child pornography. Authorities also found several videos that Berlanga produced on these devices as well.

In one video, Berlanga picks up a minor victim, wraps her legs around his waist and proceeds to simulate sexual intercourse while he remains standing. In an image he also produced, his penis is seen on the back of her jeans while she is lying down.

The investigation revealed the victim to be a minor relative, approximately 7-8 years of age during the production of some of the videos and images.

The investigation revealed some of the images were taken at a hotel in the Galleria area during the 2018 BBQ cook off - the precursor to the Houston Livestock Show and Rodeo.

Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of the Houston Metro Internet Crimes Against Children Task Force, which included detectives from police departments in Galveston, Pearland and Webster.

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

Assistant U.S. Attorney Sherri L. Zack 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.

CORPUS CHRISTI, Texas – A 36-year-old Edinburg man has been ordered to federal prison for possession with the intent to distribute more than 25 kilograms of meth, announced U.S. Attorney Ryan K. Patrick.

Sarafin Rodriguez Pena pleaded guilty Aug. 29, 2019.

Today, U.S. District Judge David S. Morales handed Pena a 132-month sentence for to be immediately followed by five years of supervised release. In handing down the sentence, the court noted the defendant’s lack of prior criminal history but concluded the significant sentence was warranted given the quantity of drugs involved.

On July 7, 2019, Pena drove a white Ford Focus into the primary inspection area of the Border Patrol checkpoint near Falfurrias. A careful search of the vehicle revealed bundles of meth concealed within the speakers mounted in the car.

Laboratory analysis later confirmed the substance in the bundles was indeed meth.

The drugs weighed a total of 25.5 kilograms with a value of more than $1.7 million.

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.

This Drug Enforcement Administration conducted the investigation with the assistance of Border Patrol. Assistant U.S. Attorney Robert D. Thorpe Jr. is prosecuting the case.

A former procurement officer of Venezuela’s state-owned and state-controlled energy company, Petroleos de Venezuela S.A. (PDVSA), was sentenced to 70 months in prison followed by three years of supervised release today for laundering the proceeds of a corrupt scheme to secure contracts from PDVSA through bribery, underreporting income on his tax return and obstructing the government’s investigation into bribes paid by the owner of U.S.-based companies to Venezuelan government officials in exchange for securing additional business with Citgo Petroleum Corporation, a Houston-based PDVSA subsidiary. 

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ryan K. Patrick of the Southern District of Texas and Special Agent in Charge Mark Dawson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Houston made the announcement.

Alfonzo Eliezer Gravina Munoz (Gravina), 57, of Katy, Texas, was sentenced by U.S. District Judge Gray H. Miller of the Southern District of Texas.  Judge Miller also ordered Gravina to pay restitution to the IRS in the amount of $214,849.21.  Judge Miller previously entered a final order of forfeiture on May 17, 2017, after Gravina forfeited $590,446 in connection with this case.  Gravina pleaded guilty on Dec. 10, 2015, to one count of conspiracy to commit money laundering and one count of making false statements in connection with a tax return.  Based on his actions after entry of his guilty plea in 2015, Gravina was indicted on Nov. 15, 2018, on one count of conspiracy to obstruct an official proceeding, to which he pleaded guilty on Dec. 10, 2018.

According to admissions made in connection with Gravina’s December 2015 plea, Gravina accepted bribes from U.S.-based businessmen Abraham Jose Shiera Bastidas (Shiera) and Roberto Enrique Rincon Fernandez (Rincon) while employed as a purchasing manager at PDVSA.  This ensured that Shiera’s and Rincon’s companies were placed on PDVSA bidding panels, which enabled the companies to win lucrative energy contracts with PDVSA.  Gravina admitted that he accepted over $590,000 in bribes from 2007 to 2014.  In order to conceal the corrupt payments, Rincon and Shiera transferred funds to Gravina from accounts they controlled outside of the United States to accounts in the names of Gravina’s associates and relatives.  Gravina admitted that he did not report the bribe payments he received from Rincon, Shiera and others as income on his 2010 tax return, thus underreporting his income.  Rincon and Shiera have also pleaded guilty and await sentencing.

After his plea in December 2015, Gravina met periodically with HSI agents to provide information regarding corruption at PDVSA.  Gravina admitted that, during interviews with the government, he concealed facts about bribe payments to officials at Citgo Petroleum Corporation and, at the same time, he provided details about the government’s investigation to a subject of the investigation, including about the topics discussed during Gravina’s meetings with the government.  This passing of information led to the destruction of evidence and to the subject’s attempt to flee the United States in July 2018.

Gravina is the seventh defendant to be sentenced by Judge Miller as part of a larger, ongoing investigation by the U.S. government into bribery at PDVSA.  Including Gravina, Rincon and Shiera, to date, the Justice Department has announced charges against 26 individuals, 20 of whom have pleaded guilty in connection with the investigation.

HSI in Houston is conducting the ongoing investigation with assistance from HSI in Boston and IRS Criminal Investigation.  Trial Attorneys Jeremy R. Sanders, Sarah E. Edwards and Sonali D. Patel of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys John Pearson and Robert S. Johnson of the Southern District of Texas are prosecuting the case.  Assistant U.S. Attorney Kristine Rollinson of the Southern District of Texas is handling the forfeiture aspects of the case.

The Criminal Division’s Office of International Affairs and the Swiss Federal Office of Justice also provided assistance. 

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

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

CORPUS CHRISTI, Texas – Eight Corpus Christi residents have been ordered to federal prison following their convictions for conspiracy to possess with intent to distribute synthetic cannabinoids, announced U.S. Attorney Ryan K. Patrick.

James Roye Bryan Townzen, 30, Victoria Martinez, 24, Michael Llamas, 29, Benjamin Llamas, 35, Raymond Reyes, 38, John Perez, 28, Raymond Shane Townzen, 29, and Joe McNabb, 30, pleaded guilty April 16, 2019, while Charles Warren Callis, 42, entered his plea Aug. 19, 2019.  

Today, Senior U.S. District Judge John D. Rainey sentenced Callis to serve 226 months in federal prison for his involvement with the synthetic cannabinoid offense. He also pleaded guilty to an unrelated possession with intent to distribute cocaine charge, but proceeded to trial on a related possession of a firearm in furtherance of cocaine trafficking. A jury convicted him of that charge July 30, 2019. He received a sentence of 166 months for the cocaine trafficking to be served consecutively to another 60 months for the firearm. That total sentence will be served concurrently to the 166-month sentence imposed in the synthetic cannabinoids case for a total 226-month sentence.

In December 2019, James Townzen received a sentence of 222 months in prison. Raymond Townzen was sentenced to 150 months, while Reyes, Perez and McNabb were ordered to serve respective terms of 84, 72 and 156 months in federal prison. Martinez and Michael Llamas received 160 and 200 months, respectively, for the drug charge in addition to another 60 months for possessing a firearm which must be served consecutively. Their total 220 and 260-month-terms of imprisonment will also be immediately followed by three years of supervised release.

Callis was ordered to serve five years of supervised release while the remaining defendants will serve three-year-terms following their respective sentences. 

The final defendant - Benjamin Llamas - will be sentenced next month.

At the sentencing hearings, the court heard from an expert witness from the Drug Enforcement Administration (DEA) who provided testimony about how the DEA handles newly emerging synthetic narcotics, their adverse effects and the imminent hazard they present to the public safety. A special agent with Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) also testified as to the impact synthetic cannabinoids have on the local community.

In handing down the sentences, the court acknowledged the significant danger of synthetic cannabinoids as well as the large scale of the operation, specifically the steps taken to import the chemicals and produce such a large quantity of product that was distributed within the community.

In January 2018, officials intercepted an international package from China sent to Corpus Christi that contained a kilogram of the synthetic cannabinoid 5F-MDMB-PINACA, a Schedule I controlled substance.

The investigation determined James Townzen was ordering illegal chemicals from overseas and using them to manufacture synthetic marijuana, or Kush, inside a room at Callis’ business Done Right AC. The finished product was then provided to Michael Llamas and others who would advertise and sell the illegal substance through online social media platforms, such as Facebook.

Further, authorities discovered that after James Townzen was taken into custody for unrelated state violations, he continued to run and direct the operation. While in custody, he provided detailed instructions to Martinez who continued to order the chemicals, manufacture the products inside Done Right AC and distribute them through Llamas. Other members of the conspiracy were responsible for picking up the international packages or purchasing the material and equipment needed to complete the process.

Law enforcement officials estimate the organization produced and sold more than 300 pounds of the illegal substance.             

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

All defendants have been and will remain in custody.

HSI led the year-long investigation known as Operation Done Wrong with the assistance of DEA. Assistant U.S. Attorney Lance Watt is prosecuting the case.

HOUSTON - A 31-year-old Houston man has been sentenced to prison for receipt and possession of child pornography, announced U.S. Attorney Ryan K. Patrick.

Jonathan Deshon Alexander pleaded guilty Aug. 12, 2019.  

Today, Chief U.S. District Court Judge Lee H. Rosenthal ordered Alexander to serve 84 months in federal prison. In handing down the sentence, the court noted these are agonizing cases which involve real children who have been abused. Judge Rosenthal considered the number of years Alexander had been viewing child pornography, his willingness to get help and what was appropriate in this particular case. 

Alexander had admitted to receiving and possessing child pornography for seven years. The court decided to assess Alexander’s punishment for the same amount of years he made these children victims once more. He will also serve 15 years on supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. He will also be ordered to register as a sex offender and must pay restitution to the victims.

In March 2017, law enforcement conducted an online session using a publicly available peer-to-peer file sharing network and located an IP address folder contained videos of child pornography. The IP address was associated with Alexander and his residence.

He admitted to downloading child pornography since approximately 2010.  Forensic analysis found more than 326 videos of child pornography, including some of children under the age of five, bondage and acts of violence.

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

The FBI conducted the investigation.  

Assistant U.S. Attorney Zahra Jivani Fenelon 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.