Southern District of Texas

HOUSTON – Three Houston men have been sentenced for their participation in a rip crew, with the leader receiving a significant 30-year-term, announced U.S. Attorney Ryan Patrick. 

Mike Piedra, 36, pleaded guilty Aug. 9, 2018, while Efrain Delgado, 33, and Jesse Perez, 45, admitted their guilt March 5, 2018. The men acknowledged their roles in a conspiracy with intent to distribute cocaine and conspiracy to use, carry or possess a firearm during and in relation to a drug trafficking crime.

Today, Chief U.S. District Chief Judge Lee H. Rosenthal sentenced Delgado and Perez to serve 150 and 160 months, respectively. On Nov. 6, Piedra was ordered to serve 360 months for his role as the leader of the group.

At Piedra’s sentencing, the court heard evidence and testimony regarding Piedra’s extensive efforts to obstruct justice in this case. He had an elaborate scheme to persuade his fellow crew members to take the fall for him. If that failed, he wanted them to take their cases to trial so he could cooperate, testify against them and potentially earn a reduced sentence. His efforts failed.

In imposing the sentence, Chief Rosenthal described Piedra’s crime as a “sinister plot” and noted he had earned every month of his 30-year sentence. 

A drug rip crew targets stash houses cartel members use to store drugs for further distribution in the United States. 

Authorities investigated Piedra’s rip crew, whose members were already gang members with extensive experience in violent robberies. The undercover operation involved the supposed robbery of a stash house where 20 kilograms of cocaine was allegedly being stored. The crew members outlined in detail the violence they would use to carry out the robbery and boasted about their prior and violent experience committing similar crimes. 

Piedra was the mastermind behind the robbery crew. He would not be present at the actual robbery, but would organize it from behind the scenes. He also provided the weapons and manpower to commit the crime. Delgado and Perez committed the robbery itself and engaged in the violence necessary to rob the stash house and steal the drugs.

There was no actual stash house. On July 23, 2015, a combined law enforcement operation resulted in the arrests of all three men without risk to the community. 

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

The Bureau of Alcohol, Tobacco, Firearms and Explosives and Houston Police Department conducted the joint investigation. Assistant U.S. Attorney Sharad S. Khandelwal prosecuted the case.

LAREDO, Texas – A 28-year-old Mexican citizen has entered a guilty plea to conspiring to import more than 16 kilograms of cocaine into the United States, announced U.S. Attorney Ryan K. Patrick.

On Sept. 3, Jose Antonio Garza Gutierrez attempted entry into the United States at the World Trade Bridge Port of Entry in Laredo driving a semi-truck and trailer. During inspection, authorities observed an unusual compartment hidden within the sleeper area of the truck. They conducted a search and found 14 tightly-wrapped bundles of cocaine weighing more than 16.94 kilograms.

The cocaine has an estimated street value of nearly $407,000.

U.S. District Judge Marina Garcia-Marmolejo will impose sentencing March 18, 2020. At that time, Garza Gutierrez faces up to life in federal prison and a possible $10 million maximum fine.

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

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

LAREDO, Texas – A 24-year-old Laredo resident has admitted he conspired to possess with intent to distribute a large quantity of marijuana, announced U.S. Attorney Ryan K. Patrick.

On July 18, authorities observed six individuals carrying bundles near the Rio Grande River in Laredo. They quickly responded to that area and witnessed a pickup truck driving towards the river.

Jose Gonzalo Ojeda was the driver and fled on foot as law enforcement approached the vehicle. Authorities soon apprehended him and recovered 480 pounds of marijuana from his truck.

The drugs have an estimated street value of more than $380,000.

Ojeda has been and will remain in custody pending sentencing, which will be set at a later date before U.S. District Judge Diana Saldana. At that time, he faces a minimum of five and up to 40 years in prison as well as a possible $5 million fine.

The Drug Enforcement Administration conducted the investigation with assistance from Border Patrol. Assistant U.S. Attorney Jennifer Day is prosecuting the case.

LAREDO, Texas – A 28-year-old Laredo native has admitted to conspiring to possess with the intent to distribute more than 135 kilograms of marijuana, announced U.S. Attorney Ryan K. Patrick.

On Sept. 13, authorities observed a man - later identified as Jose Eduardo Flores – carrying a black bundle near an entrance to a ranch in Laredo. After he returned to his vehicle, authorities attempted to conduct a traffic stop. However, Flores quickly fled the scene.

Law enforcement found his abandoned vehicle at a nearby gas station. They conducted a search and removed four black bundles of marijuana weighing 135.8 kilograms.

The marijuana has an estimated street value of nearly $66,000.

Authorities were able to locate Flores and took him into custody. He admitted he knew he was illegally transporting a controlled substance.  

U.S. District Judge Marina Garcia-Marmolejo will impose sentencing March 18, 2020. At that time, Flores faces a minimum of five and up to 40 years in federal prison and a possible $5 million maximum fine.

He was permitted to remain on bond pending that hearing. 

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

LAREDO, Texas – A 51-year-old Dallas resident has entered a guilty plea to conspiring to import a large quantity of heroin and meth into the United States near Laredo, announced U.S. Attorney Ryan K. Patrick.    

On Sept. 28, Monica Christine Canales Rodriguez attempted entry into the United States at the Juarez-Lincoln Port of Entry in Laredo driving a Toyota Four Runner. During initial inspection, authorities noticed anomalies in all four of the tires. They conducted a search and found 24 bundles of heroin and meth discreetly hidden in the tires.

The heroin and meth had an approximately weight of 48.82 and 13.8 kilograms, respectively. The total estimated street value is in excess of $1.3 million.

Today, Canales Rodriguez admitted she had planned to transport the drugs to Dallas where she was expecting to be paid $15,000.

She was permitted to remain on bond pending sentencing, which will be set at a later date before U.S. District Judge Diana Saldana. At that time, she faces a minimum of 10 years and up to life in prison as well as a possible $10 million fine.

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

CORPUS CHRISTI, Texas – A 25-year-old Pharr resident has been ordered to federal prison following her conviction of conspiring to distribute nearly six kilograms of meth, announced U.S. Attorney Ryan K. Patrick.

Sadie Elaine Canales pleaded guilty Feb. 21, 2018.

Today, U.S. District Judge Janis Graham Jack handed Canales a 140-month sentence to be immediately followed by five years of supervised release. At the hearing today, the court determined she was a supervisor or  manager in an extensive narcotics smuggling organization after hearing additional evidence about her role in the conspiracy. 

Canales arranged for the transportation of narcotics through the U.S. Border Patrol checkpoint near Sarita Aug. 6, 2017. Members of the organization had loaded meth in Mexico.

Francisco Javier Castillo Jr., of Galveston, recruited Beatrice Ortega and Esmeralda Ramos to then drive the vehicle into the United States.

Upon inspection, authorities discovered the drugs hidden inside the vehicle’s dashboard.

Canales admitted she had worked with others to smuggle the meth and was also involved in transporting marijuana. 

At the hearing today, the court found Canales responsible for a total of 5.83 kilograms of pure meth and 41.68 kilograms of marijuana.

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

Castillo, Ortega and Ramos also pleaded guilty and are currently serving their respective sentences.

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

CORPUS CHRISTI, Texas - A 41-year-old Corpus Christi man has been sent to federal prison following his conviction of producing child pornography, announced U.S. Ryan K. Patrick.

Gerardo Fabian Ramos pleaded guilty Aug. 13.

Today, Senior U.S. District Judge Janis Graham Jack sentenced Ramos to 720 months in prison. At the hearing, the court heard Ramos produced images of himself sexually assaulting two toddlers on multiple occasions. He also drugged their mother to facilitate his crimes. The court also heard from the mother who read a letter explaining how the crime impacted their lives. The father also provided testimony. In imposing the sentence, Judge Jack noted how horrified she was for these children and their families and friends. “Sometimes there is no remedy to right a wrong,” she said. “This is one of those times.” The court also stated that she did not believe there was any sentence long enough to protect the community from Ramos.

The court further ordered Ramos to serve the rest of his life 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.

In March 2019, the National Center for Missing and Exploited Children (NCMEC) sent a CyberTip to local law enforcement indicating a Corpus Christi user had uploaded an image of child pornography to a popular social media platform. Ranos was that user.

Law enforcement ultimately found hundreds of videos and still images of child pornography in his possession.

Authorities also discovered several images and videos of child pornography Ramos had produced himself and attempted to identify those victims. Some of the images and videos depicted Ramos attempting to vaginally penetrate the victims’ with his penis. 

Ramos 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 the Corpus Christi Police Department’s Internet Crimes Against Children Task Force and NCMEC.

Assistant U.S. Attorney Brittany L. Jensen  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.

LAREDO, Texas –  A 32-year-old man now faces up to life in prison after pleading guilty to transporting aliens resulting in death, announced U.S. Attorney Ryan K. Patrick.

Luis Morales-Melendez, a Guatemalan national who illegally entered the United States himself, admitted to the charges today before U.S. Magistrate Judge Diana Song Quiroga.

On Aug. 22, authorities encountered 12 individuals near Zebra Creek in Laredo. The investigation determined they were all undocumented aliens who had illegally entered the country by crossing the Rio Grande river. Several identified Morales-Melendez as the guide who led them into the United States.

Another man had been a part of the group, but had died along the way. The investigation revealed the victim had been struggling in the water, but Morales-Melendez did not offer aid or use a rope to help him. Morales-Melendez denied hearing anyone call for help. While some lifejackets were available, there were not enough for everyone. The victim’s body was recovered on the Mexican side of the river the following day.

Morales-Melendez admitted to illegally entering the United States with the group and acting as the foot guide on the American side of the river. As part of his plea, Morales-Mendez acknowledged receiving a discount on his smuggling fee in exchange for acting as the foot guide once the group crossed into the United States.

Morales-Melendez has been and will remain in custody pending sentencing, which is set for March 24, 2020, before U.S. District Judge Marina Garcia-Marmolejo. At that time, he faces up the life in prison as well as a possible $250,000 fine. 

Border Patrol initiated the investigation in conjunction with Immigration and Customs Enforcement’s Homeland Security Investigations. Assistant U.S. Attorney Michael Bukiewicz is prosecuting the case.

CORPUS CHRISTI, Texas – A Houston couple has been ordered to federal prison for knowingly and intentionally conspiring to transport illegal aliens, announced U.S. Attorney Ryan K. Patrick.

Kevin Kerr, 32, and Brianna Branch, 30, pleaded guilty Aug. 29.

Today, Senior U.S. District Judge Janis Jack order Kerr to serve 85 months in federal prison, while Branch received a70-month term of imprisonment. Both will also serve three years of supervised release following the completion of their sentence.

In imposing the sentence, the court determined Kerr and Branch to be leaders of the conspiracy which spanned a three-month period in early 2019. The court noted the dangerous manner in which the aliens were transported.  

Kerr and Branch were held accountable for the smuggling of more than 100 aliens, including several minors, past South Texas Border Patrol (BP) checkpoints. The couple would recruit drivers from the Houston area to travel to South Texas and place the undocumented aliens in utility trailers - in unnecessary and harsh conditions.

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

A total of four other members of the conspiracy have also pleaded guilty for their roles in the conspiracy and are pending sentencing.

Immigration and Customs Enforcement's Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Neel Kapur is prosecuting the case.

McALLEN – Six former employees of the East Hidalgo Detention Center (EHDC) are now in custody themselves on federal charges, announced U.S. Attorney Ryan K. Patrick. 

Brenda Fuentes, 47, Weslaco, and Jhaziel Loredo, 32, Progreso, are set for their arraignments and detention hearings today at 2 and 4 p.m., respectively, before U.S. Magistrate Judge Juan F. Alanis. Jason Catalan, 36, Mercedes; Erasmo Loya, 54, La Villa; and Veronica Ortega, 43, McAllen, will have their hearings tomorrow at 2 p.m.

Domingo Hernandez, 25, Mercedes, made his initial appearance in New Mexico and is expected to appear in McAllen in the near future.

A McAllen grand jury returned the indictments Nov. 19. Authorities took them all into custody Friday, Nov. 22.

Catalan, Hernandez, Loredo, Loya and Ortega are charged with bribery, while Fuentes faces one count of sexual abuse of a ward.

According to the indictments, authorities discovered various forms of contraband in EHDC, a correctional facility under contract with the U.S. Marshals Service (USMS). Catalan, Hernandez, Loredo, Loya and Ortega allegedly accepted things of value in exchange for bringing contraband into the detention center. 

The investigation further revealed Fuentes engaged in a sexual act with a federal inmate, according to the charges.

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

USMS, 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.

HOUSTON – A 27-year-old Houston resident and member of The Sauce Factory has been sentenced for conspiracy and sex trafficking, announced U.S. Attorney Ryan K. Patrick. A Houston federal jury deliberated for less than eight hours before convicting Jaimian Sims May 20 after five days of trial.  

Today, U.S. District Judge David Hittner sentenced Sims to life in prison. Sims was further ordered to pay $1575 in restitution to a minor victim. In handing down the sentence, Judge Hittner stated Sims was a threat to society. The court also noted he had received several letters of support, one in particular claiming Sims was a positive role model in the community. The government contended Sims has not made any contribution to society and that he and other members of The Sauce Factory waive around firearms, large amounts of cash and glorify a materialistic lifestyle built on the backs of sexually-exploited women.  Sims will also be required to register as a sex offender.

At trial, the jury heard that Sims trafficked both adult and minor females.

In one instance, Sims had directed a co-defendant - Tabbetha Mangis, 22, of La Grange - to find another co-defendant - Gary Shawn Haynes Jr. - 23 of Houston - to find Haynes a girl for prostitution. The victim, only 17 years of age, was picked up from her residence and transported to a 5,000 square foot residence in Northwest Houston, known as “The Mansion.”

After a brief stay there, the jury heard that the minor was taken to the Express Inn where she was given an identification card in order to rent a room. Sims had instructed an adult victim to provide the card to the minor. He had also told that adult to take photos of the minor female victim and post ads for her which was used to solicit customers who would pay for sex. 

The jury heard testimony from the adult victim who described her fear of Sims because he always carried a gun and he had assaulted some of the other women who engaged in commercial sex on his behalf. 

Testimony also revealed the minor victim wanted to be “arrested” because she was afraid the perpetrators would think she was speaking to law enforcement on her own. This dovetailed with the government’s expert testimony on victimology and the pimp/prostitution subculture amongst those involved in that world as “the game.” The expert described for the jury the meaning of several terms associated with and used by those within this subculture to include victims and defendants. 

The jury also saw and heard three rap videos featuring Sims which contained many of the terms people use in the game. In the videos, Sims refers to two of his co-defendants and their roles in the organization. He references selling “white” women and how successful he is at being a pimp. 

The defense attempted to convince the jury that the women were not victims and engaged in the sex acts willingly nor did he use force, fraud 0r coercion to make them do so. They were not convinced and found him guilty of conspiracy to commit sex trafficking of a minor and sex trafficking of a minor.   

Mangis and Haynes previously pleaded guilty for their roles.  

Sims 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 Harris County Constable’s Office Precinct 4 and FBI conducted the investigation with the assistance of the Harris County District Attorney’s Office as part of the Human Trafficking Rescue Alliance (HTRA).

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

Assistant U.S. Attorneys Sherri Zack and Kimberly Leo prosecuted the case. 

HOUSTON – A major local-based civil engineering company and its parent company have agreed to enter into a three-year deferred prosecution agreement (DPA) in connection with a criminal information charging the company with violating the Federal Election Campaign Act. As part of the agreement, Dannenbaum Engineering Corporation (DEC), based in Houston, and its parent company, Engineering Holding Corporation (EHC), agreed to pay a $1.6 million criminal fine for its involvement in a multi-year conduit contribution scheme.

“DEC engaged in a criminal scheme that undermined the fairness and transparency of our nation’s campaign finance laws in a misguided effort to increase its own power and prestige,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “Today’s resolution demonstrates the Department’s resolve to aggressively pursue those who seek to corrupt our democratic process.”

“Protecting the integrity of the finest democratic system in the world is a cornerstone of our collaborative prosecutive efforts,” said First Assistant U.S. Attorney Tim S. Braley for the Southern District of Texas. “Any corporation that attempts to circumvent the protective cloak provided by the nation’s election laws will be held accountable for its actions.”

“The Federal Election Campaign Act is designed to limit financial influence in the election of candidates for federal office. In other words, it's designed to make sure that our democratic process, and representation in our democratic process, is fair and transparent,” said Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office. “In this case, through DEC Jim Dannenbaum thought that by exceeding its contribution limits it could unfairly and illegally outweigh the lawful ones, and now that company is being held accountable. Our system of representative government works only when honest contributions are not diluted by fraud. Through our Public Corruption Unit, the FBI will continue to do its part in making sure there are fair and free elections.”

According to the companies’ admissions made in connection with the DPA, from 2015 through 2017, DEC and EHC made $323,300 in illegal conduit contributions through various employees and their family members to federal candidates and their committees. DEC corporate funds were used to advance or reimburse employee monies for these contributions. DEC did not reveal to any of the federal candidates that the corporation was the true source of the contributions. The object of the scheme was for DEC, its CEO James Dannenbaum, and a former employee to gain access to and potentially influence various candidates for federal office, including candidates for the presidency as well as the Senate and House of Representatives.       

The department reached this resolution based on a number of factors, including DEC’s cooperation with the investigation, the internal investigation conducted and the significant remedial measures taken. For example, DEC altered its board structure to ensure the former CEO does not control the board and stopped all politically-related payments to its employees (including, but not limited to, payments treated as “marketing advances”) resulting in a cessation of these expenditures. Further, DEC hired and/or designated a full-time chief governance and compliance officer. The department also took into account the companies’ inability to pay a fine.

Former CEO Dannenbaum has been charged in a separate criminal information. An information is merely an allegation, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

The FBI conducted the investigation. Assistant U.S. Attorneys Carolyn Ferko and John Pearson and Trial Attorney Jessica C. Harvey of the Criminal Division’s Public Integrity Section are prosecuting the case. IRS-Criminal Investigation also provided substantial assistance in this matter.

A major Houston, Texas-based civil engineering company and its parent company have agreed to enter into a three-year deferred prosecution agreement (DPA) in connection with a criminal information charging the company with violating the Federal Election Campaign Act. As part of the agreement, Dannenbaum Engineering Corporation (DEC), headquartered in Houston, and its parent company, Engineering Holding Corporation (EHC), agreed to pay a $1.6 million criminal fine for its involvement in a multi-year conduit contribution scheme.

“DEC engaged in a criminal scheme that undermined the fairness and transparency of our nation’s campaign finance laws in a misguided effort to increase its own power and prestige,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “Today’s resolution demonstrates the department’s resolve to aggressively pursue those who seek to corrupt our democratic process.”

“Protecting the integrity of the finest democratic system in the world is a cornerstone of our collaborative prosecutive efforts,” said First Assistant U.S. Attorney Tim S. Braley for the Southern District of Texas. “Any corporation that attempts to circumvent the protective cloak provided by the nation’s election laws will be held accountable for its actions.”

“The Federal Election Campaign Act is designed to limit financial influence in the election of candidates for federal office. In other words, it's designed to make sure that our democratic process, and representation in our democratic process, is fair and transparent,” said Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office. “In this case, through DEC, Jim Dannenbaum thought that by exceeding its contribution limits it could unfairly and illegally outweigh the lawful ones, and now that company is being held accountable. Our system of representative government works only when honest contributions are not diluted by fraud. Through our Public Corruption Unit, the FBI will continue to do its part in making sure there are fair and free elections.”

According to the companies’ admissions made in connection with the DPA, from 2015 through 2017, DEC and EHC made $323,300 in illegal conduit contributions through various employees and their family members to federal candidates and their committees. DEC corporate funds were used to advance or reimburse employee monies for these contributions. DEC did not reveal to any of the federal candidates that the corporation was the true source of the contributions. The object of the scheme was for DEC, its CEO James Dannenbaum, and a former employee to gain access to and potentially influence various candidates for federal office, including candidates for the presidency as well as the Senate and House of Representatives.

The department reached this resolution based on a number of factors, including DEC’s cooperation with the investigation, the internal investigation conducted and the significant remedial measures taken.  For example, DEC altered its board structure to ensure the former CEO does not control the board and stopped all politically-related payments to its employees (including, but not limited to, payments treated as “marketing advances”) resulting in a cessation of these expenditures. Further, DEC hired and/or designated a full-time chief governance and compliance officer. The department also took into account the companies’ inability to pay a fine.

Former CEO Dannenbaum has been charged in a separate criminal information. An information is merely an allegation, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

The FBI conducted the investigation. Trial Attorney Jessica C. Harvey of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys Carolyn Ferko and John Pearson are prosecuting the case. IRS-Criminal Investigation also provided substantial assistance in this matter.

HOUSTON – A 52-year-old Houston man has admitted to his participation in the July 2014 murder outside a parole office in Houston, announced U.S. Attorney Ryan K. Patrick and Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. 

Clyde Williams admitted to conspiracy to commit murder for hire.

During the hearing today, Williams admitted that in June 2014, he was hired to kill a 43-year-old Houston man. He expected to be paid $20,000 in return.

The victim was to be killed because he was suspected of stealing approximately 50 kilograms of cocaine from a truck driver involved in a drug organization - David Roberts, 44, of Houston. Roberts has also pleaded guilty, admitting to regularly transporting large kilograms of cocaine from Houston to Atlanta and transporting large quantities of cash on behalf of the drug organization’s leader. 

In April 2014, Roberts received two duffle bags filled with cocaine in Houston. Soon after the delivery, a lone gunman robbed Roberts of the cocaine. The leader of the drug organization believed the victim and another individual were responsible for the robbery and assembled a plan to kill them.

On April 23, 2014, the other individual was kidnapped, zip-tied and put in the trunk of a car. While being transported, he was able to break free, open the trunk and jump out of the vehicle. A good Samaritan saw him, picked him up and attempted to drive him to safety. However, they were pursued and attacked with gunshots. Both were struck but survived.  

Following this failed deadly attack, the second victim was targeted. Williams was hired to conduct the murder and was provided a firearm. Williams admitted he was told the victim would be meeting with his parole officer on July 1, 2014. Following the appointment, the victim returned to his vehicle in the parking lot, at which time Williams fired multiple shots, some at close range, killing the man as he sat in the driver’s seat.    

U.S. District Judge Sim Lake accepted the plea today and has set sentencing for Sept. 17, 2020. At that time, Williams faces up to life imprisonment for his participation in this murder for hire scheme. 

The charges are the result of the Houston Law Enforcement Violent Crime Initiative created in June 2017 which combines personnel and resources from numerous local, state and federal law enforcement agencies. The goal of the initiative is to proactively fight and reduce violent crime across the Greater Houston area by targeting the region’s most violent offenders, augmenting investigative and prosecutorial efforts, and enhancing training, public awareness and education.

The FBI, Houston Police Department, Texas Department of Criminal Justice, U.S. Bureau of Prisons, U.S. Marshals Service and the Texas Department of Public Safety conducted the investigation. Assistant U.S. Attorneys Steve Mellin and Sebastian Edwards are prosecuting the case along with Trial Attorney Jim Nelson of the Department of Justice’s Capital Case Section.

A Texas man has admitted to his participation in the July 2014 murder outside a parole office in Houston, Texas, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Ryan K. Patrick for the Southern District of Texas. 

Clyde Williams, 52, of Houston, Texas, admitted to conspiracy to commit murder for hire. U.S. District Judge Sim Lake accepted the plea today and has set sentencing for Sept. 17, 2020.  At that time, Williams faces up to life imprisonment for his participation in this murder for hire scheme. 

During the hearing today, Williams admitted that in June 2014, he was hired to kill a 43-year-old Houston man. He expected to be paid $20,000 in return.

The victim was to be killed because he was suspected of stealing approximately 50 kilograms of cocaine from a truck driver involved in a drug organization – David Roberts, 44, of Houston. Roberts has also pleaded guilty, admitting to regularly transporting large kilograms of cocaine from Houston to Atlanta, Georgia, and transporting large quantities of cash on behalf of the drug organization’s leader.  

In April 2014, Roberts received two duffle bags filled with cocaine in Houston. Soon after the delivery, a lone gunman robbed Roberts of the cocaine. The leader of the drug organization believed the victim and another individual were responsible for the robbery and assembled a plan to kill them.

On April 23, 2014, the other individual was kidnapped, zip-tied and put in the trunk of a car. While being transported, he was able to break free, open the trunk and jump out of the vehicle. A good Samaritan saw him, picked him up and attempted to drive him to safety. However, they were pursued and attacked with gunshots. Both were struck but survived.  

Following this failed deadly attack, the second victim was targeted. Williams was hired to conduct the murder and was provided a firearm. Williams admitted he was told the victim would be meeting with his parole officer on July 1, 2014. Following the appointment, the victim returned to his vehicle in the parking lot, at which time Williams fired multiple shots, some at close range, killing the man as he sat in the driver’s seat.    

The charges are the result of the Houston Law Enforcement Violent Crime Initiative created in June 2017 which combines personnel and resources from numerous local, state and federal law enforcement agencies. The goal of the initiative is to proactively fight and reduce violent crime across the Greater Houston area by targeting the region’s most violent offenders, augmenting investigative and prosecutorial efforts, and enhancing training, public awareness and education.

The FBI, Houston Police Department, Texas Department of Criminal Justice, U.S. Bureau of Prisons, U.S. Marshals Service and the Texas Department of Public Safety conducted the investigation. Trial Attorney Jim Nelson of the Department of Justice’s Capital Case Section and Assistant U.S. Attorneys Steve Mellin and Sebastian Edwards are prosecuting the case.

CORPUS CHRISTI, Texas – A 47-year-old Beeville man charged with destruction of U.S. government property and possession of a stolen firearm has admitted his guilt, announced U.S. Attorney Ryan K. Patrick.

Brian Dale Robinson pleaded guilty today before U.S. District Judge Nelva Gonzales Ramos.

Robinson admitted he knew the firearm in his possession was stolen and he intentionally damaged federal property. He had hit a barricade located at the North gate entrance of the Naval Air Station (NAS) in Corpus Christi.

On Oct. 7, Robinson was at a gas station in Beeville when he spotted a Dodge Ram 3500 pickup truck with the engine running. He then entered that vehicle without permission and drove straight to Corpus Christi. There, he approached the NAS and attempted to gain unauthorized access to the base by crashing through the gate. However, the vehicle became inoperable after he hit the barricade.

Robinson exited the pickup truck and fled on foot into the base with a handgun he had stolen from the vehicle and hid next to a dumpster. Law enforcement immediately arrested him. Robinson claimed he had suicidal thoughts. However, he opted to drop the weapon so no one else would be hurt. Following his arrest, they located an HS Produkt, model XDM-9, 9mm pistol loaded with a full magazine. 

U.S. District Judge Nelva Gonzales Ramos will impose sentencing March 19, 2020. At that time, Robinson faces up to 10 years in federal prison and a possible $250,000 maximum fine.

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

The Naval Criminal Investigative Service and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney Robert D. Thorpe Jr. is prosecuting the case.    

CORPUS CHRISTI, Texas – A 37-year-old Corpus Christi resident who was involved in a shooting at a local convenience store has been sentenced following his conviction of unlawful ammunition possession, announced U.S. Attorney Ryan K. Patrick.

Billy Boortz, a member of the Homietos outlaw motorcycle gang and former member of the Mexican Mafia gang, pleaded guilty July 24.

Today, U.S. District Judge David S. Morales handed him a 110-month sentence to be immediately followed by three years of supervised release. At the hearing, the court heard additional evidence that Boortz intentionally tried to murder the victim in this case. In handing down the sentence, the court noted Boortz fired his pistol directly at the victim, not in the air or at the ground, and that the offense would have constituted attempted second degree murder. 

On May 11, Boortz was engaged in a physical altercation with another man. He then returned to a vehicle, retrieved a weapon and fired several rounds at the victim, hitting the victim’s vehicle and striking the victim in the foot.  

Agents were able to identify Boortz using video footage. He had been taken into custody at a local hospital on May 26, where he was treated for a gunshot wound he received after another shooting.

Boortz was previously convicted of multiple felony offenses, including aggravated assault, aggravated assault on a public servant, evading arrest with a vehicle and unlawful possession of a firearm by a felon. He is, therefore, prohibited from possessing firearms or ammunition per federal law.

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 Bureau of Alcohol, Tobacco, Firearms and Explosives and the Corpus Christi Police Department Gang Unit conducted the investigation.

The case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.

Assistant U.S. Attorney David Paxton prosecuted the case.

LAREDO – A 36-year-old Mexican man has been ordered to federal prison for his role in importing approximately 32 kilograms of meth inside hidden compartments of a vehicle, announced U.S. Attorney Ryan K. Patrick. Raul Edrey Manrique Bernal pleaded guilty Aug. 8. 

Today, U.S. District Judge Diana Saldana handed Bernal a 51-month sentence to be immediately followed by five years of supervised release. At the hearing, the court heard additional evidence that described Bernal’s involvement in the conspiracy. She noted Bernal was educated and had a career in Mexico, adding that his involvement in drug trafficking was pure madness. The court commented that the desire for easy money caused him to make a bad decision.

On April 15, Bernal attempted to enter into the United States via the Juarez-Lincoln Bridge #1 Port of Entry, at which time a K-9 alerted to the odor of narcotics emitting from the vehicle. Authorities conducted a search and located 63 bundles discreetly hidden in aftermarket compartments in both rear quarter panels and in the bumper. The substance later tested positive for meth with a total weight of 32 kilograms.

The street value of the drugs is approximately $160,000.

Bernal 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 Investiagtions and Customs and Border Protection conducted the investigation. Assistant U.S. Attorney Anthony J. Evans prosecuted the case.

McALLEN – A 46-year-old local man has been ordered to federal prison following his conviction of health care fraud and aggravated identity theft, announced U.S. Attorney Ryan K. Patrick. Eduardo Carrillo, of McAllen, pleaded guilty Nov. 20, 2015.

Today, U.S. District Judge Randy Crane handed Carrillo a 24-month sentence and ordered he pay $25,955 in restitution. The sentence will also be followed by three years of supervised release. 

At the time of plea, Carrillo admitted he caused others to bill Medicare for patients who were actually deceased. Carrillo submitted fraudulent documentation to a billing company, and the company would file claims with Medicare for reimbursement of physician services. Records law enforcement obtained proved the patients were deceased at the time he alleged to have provided services to the patients.

Carrillo also admitted to engaging in a scheme with his co-conspirator and assistant, Martha Uribe Medrano, 52, of Edinburg, to solicit and obtain illegal kickbacks in exchange for patient referrals. Carrillo and Medrano solicited and obtained cash in exchange for referrals of Medicare beneficiaries. He admitted he used the Medicare number and personal information of a patient in the exchange. Medrano pleaded guilty to illegal remunerations and was previously sentenced for her role in the scheme. 

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

The U.S. Department of Health and Human Services‐Office of Inspector General and the FBI conducted the investigation. Assistant U.S. Attorneys Michael Day and Andrew Swartz are prosecuting the case.

HOUSTON –  A 43-year-old Houston man has been ordered to federal prison following his conviction of possession with intent to distribute meth, announced U.S. Attorney Ryan K. Patrick. Mack Biggers pleaded guilty Sept. 6.

Today, U.S. District Judge Alfred Bennett handed Biggers a 180-month sentence to be immediately followed by five years of supervised release. The sentence includes an upward variance due to Biggers extensive criminal history. At the hearing, the court heard additional information, including a presentation detailing how Biggers committed his narcotics offenses.

For several months in 2017 and 2018, Biggers acquired and sold various narcotics including meth and illegally possessed firearms. Biggers also produced and starred in rap videos that glamorized his illegal activities.

On Feb. 21, 2018, authorities conducted surveillance and subsequent arrest of Biggers as he attempted to flee from police at an apartment complex located on the 14700 block of West Oaks Plaza Drive in Houston. He had thrown bags down as he fled. Law enforcement recovered them, which were found to contain hundreds of pills made from various substances including meth and heroin.

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

The Houston Police Department and Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney John Michael Lewis is prosecuting the case.

Three people are now in custody in relation to the fatal raid that occurred in January 2019 on Harding Street in Houston, Texas, announced Assistant Attorney General Eric Dreiband of the Department of Justice’s Civil Rights Division, U.S. Attorney Ryan K. Patrick for the Southern District of Texas and Special Agent in Charge Perrye K. Turner of the FBI.

A federal grand jury returned the nine count indictment Nov. 14 against Gerald M. Goines, 55, and Steven M. Bryant, 46, both former Houston Police Department (HPD) officers. Also charged is Patricia Ann Garcia, 53. All are residents of Houston. The indictment was unsealed this morning as authorities took all three into custody. They are expected to make their initial appearances before U.S. Magistrate Judge Dena H. Palermo at 2 p.m. central time.

The federal indictment stems from the Jan. 28 narcotics raid HPD conducted on the 7800 block of Harding Street in Houston. The enforcement action resulted in the deaths of two residents at that location. 

Goines is charged with two counts of depriving the victims’ constitutional right to be secure against unreasonable searches. The indictment alleges Goines made numerous materially false statements in the state search warrant he obtained for their residence. The execution of that warrant containing these false statements resulted in the death of the two individuals as well as injuries to four other persons, according to the indictment.

Goines and Bryant are charged with obstructing justice by falsifying records. Goines allegedly made several false statements in his tactical plan and offense report prepared in connection with that search warrant. The indictment alleges Bryant falsely claimed in a supplemental case report he had previously assisted Goines in the Harding Street investigation. Bryant allegedly identified a brown powdery substance (heroin) he retrieved from Goines’ vehicle as narcotics purchased from the Harding Street residence Jan. 27.

Goines is further charged with three separate counts of obstructing an official proceeding. The federal grand jury alleges Goines falsely stated Jan. 30 that a particular confidential informant had purchased narcotics at the Harding Street location three days prior. He also falsely stated Jan. 31 that a different confidential informant purchased narcotics at that residence that day, according to the charges. On Feb. 13, he also falsely claimed he had purchased narcotics at that residence on that day. The indictment alleges none of these statements were true.

The charges against Garcia allege she conveyed false information by making several fake 911 calls. Specifically, on Jan. 8, she allegedly made several calls claiming her daughter was inside the Harding Street location. According to the indictment, Garcia added that the residents of the home were addicts and drug dealers and that they had guns – including machine guns – inside the home. The charges allege none of Garcia’s claims were true.

If convicted of the civil rights charges, Goines faces up to life in prison. Each obstruction count carries a potential 20-year sentence, while Garcia faces a five-year term of imprisonment for conveying false information.

The FBI is conducting the investigation. Assistant U.S. Attorneys Alamdar S. Hamdani, Arthur R. Jones and Sharad S. Khandelwal, and Special Litigation Counsel Jared Fishman of the Department of Justice’s Civil Rights Division, 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.

GALVESTON, Texas –A jury has convicted a 39-year-old Santa Fe resident guilty of production of child pornography, announced U.S. Attorney Ryan K. Patrick. Gace previously pleaded guilty to distribution, receipt and possession of child pornography as well as attempted destruction of evidence.

The trial on the production charge began Monday, Nov. 18 and concluded the following day. The jury deliberated for approximately one hour before returning the guilty verdict for sexual exploitation of a child, otherwise known as production of child pornography.

During trial, the jury heard testimony from multiple law enforcement officers, Gace’s ex-wife and her husband. 

In October 2016, law enforcement received information from the National Center for Missing and Exploited Children (NCMEC) regarding a cyber-tip from a file sharing network regarding images and videos of child pornography. The investigation revealed the email and IP address of the file sharing account posting the images was associated with Gace. 

When law enforcement arrived to search his home, Gace attempted to douse his cellular phone under water in an attempt to prevent law enforcement from gaining access to its contents. Law enforcement thwarted the attempt, dried out the phone and were able to conduct a forensic analysis on it.

A forensic analysis of that device revealed hundreds of images and videos of child pornography. It also showed Gace used a messaging site to chat with other like-minded individuals to receive and distribute images and videos of child pornography. He also had another file sharing account previously unknown to law enforcement. 

Gace’s second file sharing account revealed hundreds more images and videos of child pornography, including images he produced of a minor girl under the age of 10 which was found in a folder titled “Zzzz never share.” Gace first captured images of the minor girl fully clothed, but progressed to producing photographs of the minor girl sleeping nude on the floor, seated naked on the floor with a vibrator next to her leg and an adult hand on her shoulder and eventually to the minor girl posing while nude in Gace’s bathtub. Within those later series of photographs, there were also images of Gace naked, standing and seated in his bathtub on the same day.  The minor appears to have taken the images.

Gace attempted to say the images not lewd and lascivious and should not be construed as child pornography. They were not convinced and convicted him as charged.

U.S. District Judge Jeffrey Brown presided over the trial and will impose sentencing Jan. 29, 2020. At that time, Gace faces a minimum of 15 and up to 30 years in federal prison.

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

Immigration and Customs Enforcement’s Homeland Security Investigations,  Houston Metro Internet Crimes Against Children Task Force, police departments in Pearland, Galveston, Santa Fe, Webster and La Marque as well as the Jones Creek Marshals Office conducted the investigation.

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

HOUSTON - Three people, including two former officers, are now in custody in relation to the fatal events that occurred in January 2019 on Harding Street in Houston, announced U.S. Attorney Ryan K. Patrick along with Assistant Attorney General Eric Dreiband of the Department of Justice’s Civil Rights Division and Special Agent in Charge Perrye K. Turner of the FBI.

A federal grand jury returned the nine-count indictment Nov. 14 against Gerald M. Goines, 55, and Steven M. Bryant, 46, both former Houston Police Department (HPD) officers. Also charged is Patricia Ann Garcia, 53. All are residents of Houston. The indictment was unsealed this morning as authorities took all three into custody. They are expected to make their initial appearances before U.S. Magistrate Judge Dena H. Palermo at 2 .m. today.

The federal indictment stems from the Jan. 28 narcotics raid HPD conducted on the 7800 block of Harding Street in Houston. The enforcement action resulted in the deaths of two residents at that location. 

Goines is charged with two counts of depriving the victims’ constitutional right to be secure against unreasonable searches. The indictment alleges Goines made numerous materially false statements in the state search warrant he obtained for their residence. The execution of that warrant containing these false statements resulted in the death of the two individuals as well as injuries to four other persons, according to the indictment.

Goines and Bryant are charged with obstructing justice by falsifying records. Goines allegedly made several false statements in his tactical plan and offense report prepared in connection with that search warrant. The indictment alleges Bryant falsely claimed in a supplemental case report he had previously assisted Goines in the Harding Street investigation. Bryant allegedly identified a brown powdery substance (heroin) he retrieved from Goines’ vehicle as narcotics purchased from the Harding Street residence Jan. 27.

Goines is further charged with three separate counts of obstructing an official proceeding. The federal grand jury alleged Goines falsely stated Jan. 30 that someone had purchased narcotics at the Harding Street location three days prior. He  also falsely stated Jan. 31 that another individual purchased narcotics at that residence that day, according to the charges. On Feb. 13, he also falsely claimed he had purchased narcotics at that residence on that day. The indictment alleges none of these statements were true.

The charges against Garcia allege she conveyed false information by making several fake 911 calls. Specifically, on Jan. 8, she allegedly made several calls claiming her daughter was inside the Harding Street location. According to the indictment, Garcia added that the residents of the home were addicts and drug dealers and that they had guns – including machine guns – inside the home, according to the indictment. The charges allege none of Garcia’s claims were true.

If convicted of the civil rights charges, Goines faces up to life in prison. Each obstruction count carries a potential 20-year sentence, while Garcia faces a five-year term of imprisonment for conveying false information.

The FBI is conducting the investigation. Assistant U.S. Attorneys Alamdar S. Hamdani, Arthur R. Jones and Sharad S. Khandelwal are prosecuting the case along with Special Litigation Counsel Jared Fishman of the department’s Civil Rights Division. 

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

HOUSTON – A 48-year-old resident of Brookshire has been ordered to prison after admitting to transportation of explosives with the intent to kill, injure and intimidate a person, announced U.S. Attorney Ryan K. Patrick along with Special Agent in Charge Perrye K. Turner of the FBI. Julia Ann Poff pleaded guilty July 1, 2019.

Today, U.S. District Judge Vanessa Gilmore handed Poff a 120-month sentence to be immediately followed by three years of supervised release. She was also ordered to pay $9,700 in restitution.

Poff admitted to mailing a package on or about Oct. 2 - 3, 2016, that contained a homemade bomb that was addressed to the former president of the United States. As part of her plea, she also acknowledged mailing two similar packages addressed to the Texas governor and then Acting Social Security Administrator. 

Each of those packages contained a victim-activated, booby trapped, improvised explosive device (IED) containing explosives materials.

The investigation revealed that on Oct. 6, 2016, authorities intercepted a U.S. Postal Service (USPS) small, flat rate box at a White House mail handling facility at Bolling Air Force Base in the District of Columbia. They opened the package, and it appeared to contain a bomb.

An FBI explosives expert conducted an examination and determined it to be a homemade bomb.

Further examination linked the box and its contents to Julia Poff or her husband. The outer box contained a taped address label, under which they found a feline hair. Testing revealed this hair was microscopically consistent with the hairs taken from a cat the Poff family cared for and owned. Also, a box contained within the USPS box contained a micro-USB cable box, cellular phone, hobby fuse, matches, paper wadding, plastic sacks, sandpaper and two 20-ounce coke bottle caps as well as pyrotechnics and smokeless powder.

Poff’s daughter identified the phone as her old cell phone which was last seen in their home’s garage in August or September 2016. Authorities also learned Poff used her bank debit card to purchase a micro-USB box with the same bar code as the one found in the USPS package.

At the time of her plea, Poff admitted she was solely responsible for sending the bomb-filled packages.

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.

The Bryan FBI JTTF conducted the investigation with assistance from the U.S. Postal Inspection Service, Texas Rangers, Social Security Administration - Office of Inspector General (OIG) and Department of Agriculture - OIG. The Bryan Resident Agency JTTF is comprised of the FBI; sheriff’s offices in Brazos, Waller and Walker Counties; police departments in Bryan, Texas A&M University and College Station; Secret Service; Texas Department of Criminal Justice - OIG and Immigration and Customs Enforcement’s Homeland Security Investigations.

Assistant U.S. Attorneys Ralph Imperato, Rob Jones and Alamdar Hamdani prosecuted the case.

HOUSTON – The U.S. Attorney’s Office for the Southern District of Texas, Equal Employment Opportunity Commission and the Justice Department’s Civil Rights Division hosted a roundtable to discuss the problem of sexual harassment in the workplace, announced U.S. Attorney Ryan K. Patrick.

The Department of Justice, through the U.S. Attorney’s Offices and the Employment Litigation Section of the Civil Rights Division, enforces Title VII of the Civil Rights Act of 1964 against state and local government employers. The law prohibits discrimination in employment on the basis of race, color, national origin, sex and religion. Sexual harassment is among the conduct the law prohibits because it is a form of sex discrimination. 

Harassment comes in many forms and can be verbal or nonverbal. It can be face-to-face or online. It can involve physical conduct or the display of images. Both men and women can be harassers or the victims of harassment. Harassment does not have to be repeated to be improper. A single incident can be enough, if severe.

This roundtable, which is the first in the country, is part of the Justice Department’s Sexual Harassment in the Workplace Initiative. The initiative seeks to bring sex discrimination claims against state and local government employers with a renewed emphasis on sexual harassment charges. The department also works to develop effective remedial measures that can be used to hold public sector employers accountable where systemic Title VII violations have been found. This includes identifying changes to existing employer practices and policies that will result in safe work environments. The creation of this initiative reflects the Department of Justice’s commitment to the aggressive enforcement of the nation’s anti-discrimination laws and an expansion of the Civil Rights Division’s efforts to eradicate sexual harassment by public employers.  

This office is working closely with the Employment Litigation Section of the Civil Rights Division to spread the word here in the district about options to help public sector employees. Roundtable discussions like this one are one way to increase awareness and build strong partnerships in the community to combat this problem together.

Additional information about Title VII and other federal employment laws is available on the Civil Rights Division’s website.

DOJ encourages anyone who has experienced sexual harassment in the workplace, or knows someone who has, to contact the Civil Rights Division.  

LAREDO, Texas – A 36-year-old Dallas man has been ordered to federal prison following his conviction conspiracy transport undocumented aliens, announced U.S. Attorney Ryan K. Patrick.

Manuel Joe Reyes pleaded guilty May 10, 2018.

Today, U.S. District Judge Marina Garcia Marmolejo handed Reyes a 96-month sentence to be immediately followed by three years of supervised release. He was further ordered to pay a $5,000 fine.

At the hearing, the court heard testimony regarding how Reyes would recruit drivers and make between $20,000 and $30,000 a week smuggling undocumented aliens. Judge Marmolejo noted Reyes used his intelligence to convince others to commit crime. She admonished him that some of the drivers he hired had been incarcerated themselves.

On May 9, 2017, Darian Wade Humphrey drove up to the United States Border Patrol Checkpoint located on Interstate Highway 35 north of Laredo in a tractor-trailer. At that time, a K-9 alerted to the vehicle. Upon inspection, authorities found 32 individuals locked inside the trailer, all of whom were later determined to be undocumented aliens from Mexico. Four of them were minors between the ages of 15 and 17.

Humphrey admitted Reyes had hired him to transport undocumented aliens from Laredo to San Antonio. Humphrey claimed to have done so on four prior occasions and that he was paid $3,000 per load.

Law enforcement arrested Reyes Dec. 6, 2017, at his home in Dallas. He admitted he had been organizing human smuggling events between Mexico and the United States by hiring drivers and coordinating deliveries. Reyes estimated that between two and three loads of undocumented aliens were smuggled weekly, with each load averaging 20 people. He said he received $10,000 per load and his drivers were paid $3,000.

Humphrey also pleaded guilty. U.S. District Judge Hilda Tagle sentenced him to 37 months with three years of supervised release on Feb. 7, 2018.

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

Border Patrol and Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Francisco J. Rodriguez is prosecuting the case.

CORPUS CHRISTI, Texas – A 48-year-old Corpus Christi resident has been ordered to federal prison after he pleaded guilty to robbing two convenience stores causing an interference with interstate or foreign commerce, announced U.S. Attorney Ryan K. Patrick.

Billy Ray Mitchell pleaded guilty July 25, 2019.

Today, U.S. District Judge Nelva Gonzales Ramos handed Mitchell a 125-month sentence to be immediately followed by three years of supervised release.

On Oct. 29, 2018, Mitchell robbed the Murphy Express convenience store in Corpus Christi at approximately 7:20 a.m. at knife point. Mitchell forced the clerk into the office where a safe was located and robbed the store of cash, cigarettes and duct tape. Mitchell then abducted the clerk, forcing her into her own vehicle and ordering her to drive him to a nearby apartment complex.

Upon arrival there, Mitchell bound and gagged the clerk using the stolen duct tape, leaving the clerk in the vehicle.

Police officers searched the area but were unable to locate Mitchell at that time. Later, agents reviewed video surveillance of the convenience store and noticed that Mitchell was wearing a distinctive neon yellow shirt with “MY SHIRT IS BRIGHTER THAN YOUR FUTURE” printed on the front. 

On Nov. 8, 2018, at approximately 4 a.m., Mitchell robbed a Circle K convenience store in Corpus Christi, threatening the store clerk with a large kitchen knife. Mitchell brandished the weapon and forced the clerk at knife point to assist in opening the cash register. Mitchell robbed the store of a pack of cigarettes and the entire contents of the cash register. Again, Mitchell forced the clerk from the store and ordered him to drive him from the scene in the clerk’s own vehicle. This time, the clerk yelled out for help to a nearby patron. Mitchell fled the scene on foot. 

Police officers searched the area but were unable to locate Mitchell at that time. However, crime scene investigators were able to recover latent fingerprints from a beer cooler that Mitchell touched. When compared, the fingerprints from the store were determined to be a match to Mitchell.

Agents executed a search warrant on Mitchell’s residence the next day and found the distinctive bright yellow shirt he wore during the Murphy Express robbery.

Mitchell later admitted he committed both robberies.

He has been detained since his arrest and will remain in custody pending transfer to a U.S. Bureau of Prisons facility.

Immigration and Customs Enforcement’s Homeland Security Investigations and the Corpus Christi Police Department conducted the investigation. Assistant U.S. Attorney David Paxton is prosecuting the case.

CORPUS CHRISTI, Texas – A 33-year-old Corpus Christi resident and member of the Sureno 13 gang has been ordered to federal prison following his  convictions for possession with intent to distribute crack cocaine and carrying a firearm in furtherance of drug trafficking, announced U.S. Attorney Ryan K. Patrick. Manual Lozano pleaded guilty July 15.

Today, U.S. District Judge John D. Rainey handed Lozano a 130-month sentence. He was further ordered to serve three years of supervised release as to each count and refrain from association with gang members.

The investigation revealed Lozano was  involved in drug distribution from his 14th Street residence in Corpus Christi. Law enforcement executed a search warrant there, at which time they seized cocaine, crack cocaine, high potency meth known as “ice,” heroin and marijuana in various distribution quantities. They also found digital scales used to weigh the narcotics, glass tubes used to smoke cocaine and $2,883.

Authorities also discovered several firearms and ammunition in his possession. Those included an AK-47 style assault rifle as well as 9mm and .45 caliber handguns.

At the time of the search, Lozano’s 18-month old son was in his care and present in the home. Child Protective Services took custody of that child who tested positive for cocaine.  

Lozano admitted he possessed the firearms in order to protect his narcotics trafficking operations. Lozano has multiple prior convictions for burglaries in Miami, Florida, and Edinburg as well as being a felon in possession of a firearm in Florida. As a convicted felon, he is prohibited from possessing firearms or ammunition per federal law.

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, Bureau of Alcohol, Tobacco, Firearms and Explosives, Immigration and Custom’s Enforcement’s Homeland Security Investigations and Corpus Christi Police Department conducted the investigation. Assistant U.S. Attorney David Paxton prosecuted the case.

CORPUS CHRISTI, Texas – A 25-year-old resident of Corpus Christi has been ordered to federal prison following his conviction of robbery, brandishing a firearm in furtherance of a crime of violence and being a felon in possession of a firearm, announced U.S. Attorney Ryan K. Patrick.

Leonard Reyna entered a guilty plea July 24.

Today, U.S. District Nelva Gonzalez Ramos handed Reyna a 87-month sentence for the robbery and being a felon who had a firearm. He also received an additional 84 months for the brandishing charge which must be served consecutively to the other sentence imposed. The sentences will be immediately followed by five years of supervised release.

At the time of his plea, Reyna admitted he participated in an aggravated robbery at the Corpus Christi Trade Center and another at a Stripes convenience store which involved the shooting of an innocent bystander.

On Aug. 26, 2018, Reyna approached a local jewelry store displaying a handgun and demanded several items of jewelry. After that robbery, he fled on foot and headed to the Stripes location on the 6000 block of Ayers. There, two men pointed a gun at a victim and demanded the keys to his truck. The victim refused and was later found inside the store where reported he had been shot in the left arm and stomach.

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

He was originally indicted along with Carlos Moreno, 26, Corpus Christi, who is charged with being involved in both robberies and with discharging a firearm.. Anyone with information about his whereabouts is asked to contact the U.S. Marshals service at 1-800-336-0102. He is considered innocent unless and until convicted through due process of law, but remains a fugitive and a warrant remains outstanding for his arrest

The Corpus Christi Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney Lance Watt is prosecuting the case.

HOUSTON - The former chief of Antigua’s Financial Services Regulatory Commission has been extradited from Antigua to face charges for his alleged role in connection with the Stanford International Bank (SIB) $7 billion investment fraud scheme, announced U.S. Attorney Ryan K. Patrick and Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division.

Leroy King, 74, of Dickerson Bay, Antigua, is the last remaining defendant in the SIB Ponzi scheme. He has been a fugitive since 2009.

King appeared before U.S. Magistrate Judge Dena Hanovice Palermo in Houston today. He is scheduled to appear again before Judge Palermo Thursday, Nov. 14, at 2 p.m. for a counsel determination hearing.

King was charged in June 2009 along with R. Allen Stanford, Houston, and others. The indictment charges King with one count of conspiracy to commit mail, wire and securities fraud; seven counts of wire fraud; 10 counts of mail fraud; one counts each of conspiracy to obstruct and obstruction of a Securities and Exchange Commission (SEC) investigation; and conspiracy to commit money laundering.

The indictment alleges King accepted more than $100,000 in bribes from Stanford in exchange for ignoring the actual value of SIB’s assets. He also allegedly assisted Stanford and others in obstructing the SEC’s investigation into the bank.

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

The FBI’s Houston Field Office, IRS-Criminal Investigation and the U.S. Postal Inspection Service conducted the investigation. Assistant U.S. Attorney John Pearson and Trial Attorney Brittain Shaw of the Criminal Division’s Fraud Section are prosecuting the case. The Criminal Division’s Office of International Affairs provided substantial assistance with the preparation of the extradition request and in support of Antigua’s domestic litigation. The FBI Legal Attaché’s Office in Barbados and the U.S. Marshals Service in Houston coordinated King’s extradition.  

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

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

The former chief of Antigua’s Financial Services Regulatory Commission has been extradited from Antigua to face charges for his alleged role in connection with the Stanford International Bank (SIB) $7 billion investment fraud scheme. 

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Ryan K. Patrick of the Southern District of Texas made the announcement.

Leroy King, 74, of Dickerson Bay, Antigua, is the last remaining defendant in the SIB Ponzi scheme. He has been a fugitive since 2009.

King appeared before U.S. Magistrate Judge Dena Hanovice Palermo in Houston, Texas, today.  

King was charged in June 2009 along with R. Allen Stanford, of Houston, and others. The indictment charges King with one count of conspiracy to commit mail, wire and securities fraud; seven counts of wire fraud, 10 counts of mail fraud, one counts each of conspiracy to obstruct and obstruction of a Securities and Exchange Commission (SEC) investigation; and conspiracy to commit money laundering.

The indictment alleges King accepted more than $100,000 in bribes from Stanford in exchange for ignoring the actual value of SIB’s assets. He also allegedly assisted Stanford and others in obstructing the SEC’s investigation into the bank.

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

The FBI’s Houston Field Office, IRS Criminal Investigation and the U.S. Postal Inspection Service investigated the case.  Trial Attorney Brittain Shaw of the Criminal Division’s Fraud Section and Assistant U.S. Attorney and John Pearson of the Southern District of Texas are prosecuting the case.  The Criminal Division’s Office of International Affairs provided substantial assistance with the preparation of the extradition request and in support of Antigua’s domestic litigation.  The FBI Legal Attaché’s Office in Barbados and the U.S. Marshals Service in Houston coordinated King’s extradition.  

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

LAREDO, Texas – A 24-year-old man from Zacatecas, Mexico, has been ordered to federal prison following his conviction of assaulting three Border Patrol (BP) agents, announced U.S. Attorney Ryan K. Patrick. Luis Gustavo Ramirez-Saucedo pleaded guilty June 25.

Today, U.S. District Judge Diana Saldana handed Ramirez-Saucedo a 33-month sentence. Not a U.S. citizen, he is expected to face removal proceedings following the sentence. At the hearing, the court heard additional testimony from three BP agents who testified as to how they were assaulted. Ramirez-Saucedo testified that he only intended to flee.

Authorities were working their assigned duties in Laredo during the late evening of March 29 when they responded to an alert of a large group crossing the Rio Grande River from Mexico. They made contact with various illegal aliens in the 20-person group, one of whom was Ramirez-Saucedo.

Soon after, Ramirez-Saucedo violently resisted the efforts of three BP agents to apprehend him, striking one in the face with his hand. Ramirez-Saucedo later assaulted another agent by throwing a ladder at him which struck him in the arms. He assaulted a third agent by striking him in the face with his forearm, causing his nose to begin bleeding.

Following his apprehension, Ramirez-Saucedo admitted he was a citizen or national of Mexico with no authority to be in or to enter the United States and had just entered the United States illegally.

Ramirez-Saucedo 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 BP conducted the investigation. Assistant U.S. Attorney Francisco J. Rodriguez prosecuted the case.

HOUSTON - A Harris County judge has been indicted on allegations of wire fraud, announced U.S. Attorney Ryan K. Patrick and Special Agent in Charge Perrye K. Turner of the FBI - Houston Division.

Judge Alexandra Smoots-Thomas, 44, of Houston, is currently the presiding judge for the 164th District Court for the State of Texas and has jurisdiction over Texas civil cases located within Harris County.

A federal grand jury returned the seven-count indictment Oct. 24, which was unsealed today as she surrendered to federal authorities. She is expected to make her initial appearance before U.S. Magistrate Judge Peter Bray today, as early as 10:00 a.m.    

“The defendant in this case is a judge, whose responsibilities are to make sure the law is followed and carried out,” Turner. “She was entrusted to serve the citizens of Harris County with duty and honor. However, the allegations contained in today’s indictment show that the judge put personal enrichment over this duty and honor."

Smoots-Thomas allegedly embezzled campaign contributions individuals and political action committees had made to her re-election campaigns. The indictment alleges Smoots-Thomas repeatedly solicited campaign contributions on the premise the money would be used to help facilitate her re-election campaigns in both 2012 and 2016. She allegedly used campaign funds for non-campaign expenses to include monthly home mortgage payments, private school tuition payments, personal travel expenses, personal luxury items and cash withdrawals. Smoots-Thomas concealed this spending from both her campaign treasurer and the Texas Ethics Commission by filing false campaign finance reports, according to the charges.

Each count of wire fraud carries a possible sentence of up to 20 years in federal prison as well as a maximum $250,000 fine.

The FBI conducted the investigation. Assistant U.S. Attorneys Ralph Imperato and John Pearson are handling the matter.

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

Tower Research Capital LLC (Tower), a New York, New York-based financial services firm has entered into a resolution with the Department of Justice to resolve criminal charges related to a scheme involving thousands of episodes of unlawful trading activity in U.S. commodities markets by three former traders.

Tower entered into a deferred prosecution agreement (DPA) in connection with a criminal information filed yesterday in the Southern District of Texas charging the company with one count of commodities fraud. Under the terms of the DPA, Tower agreed to pay a combined $67.4 million in criminal monetary penalties, criminal disgorgement and victim compensation with the criminal monetary penalty credited for any payments made to the Commodity Futures Trading Commission (CFTC). Tower also agreed to, among other things, conduct appropriate reviews of its internal controls and policies and procedures, and to modify its compliance program, where necessary, to ensure it is designed to deter and detect violations of the Commodity Exchange Act and commodities fraud statute.

“Traders at Tower Research Capital LLC fraudulently placed thousands of bogus orders they never intended to execute—to deceive other market participants and move the market for their own benefit,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “This agreement includes monetary penalties, the return of unjust profits, and compensation of victims to protect our nation’s commodities markets from manipulation.”

“Free markets are not open and fair when people criminally manipulate them,” said U.S. Attorney Ryan K. Patrick of the Southern District of Texas (SDTX). “Fraudsters like this will be prosecuted. This case also shows the Department’s willingness to resolve cases when industry cooperates and remediates failures of internal controls.”

“When traders seek to manipulate the commodities market for personal gain, it can cause significant and long-lasting financial consequences for law-abiding citizens,” said Special Agent in Charge Emmerson Buie Jr. of the FBI’s Chicago Field Office. “The FBI will continue to work with its prosecutorial partners to safeguard the market from unlawful influence and hold violators accountable.”

According to court documents filed as part of the DPA, from approximately March 2012 until December 2013, three traders who were members of a single trading team at Tower engaged in a scheme to defraud other participants in the markets for E-Mini S&P 500, E-Mini NASDAQ 100 and E-Mini Dow futures contracts (collectively, E‑Mini futures contracts). The S&P 500 and NASDAQ 100 future contracts were traded on the Chicago Mercantile Exchange, while the Dow futures contracts were traded on the Chicago Board of Trade. On thousands of occasions throughout this period, the traders fraudulently placed orders to buy and sell the E-Mini futures contracts with the intent to cancel those orders before execution, including in an attempt to profit by deceiving other market participants. By placing these orders, the traders intended to, and did, inject false and misleading information about the genuine supply and demand for E-Mini futures contracts into the markets, which deceived other market participants into believing something untrue, namely that the visible order book accurately reflected market-based forces of supply and demand. This false and misleading information was intended to, and at times did, trick other market participants into reacting to the apparent change and imbalance in supply and demand by buying and selling E-Mini futures contracts at quantities, prices and times they otherwise likely would not have traded. The Department and Tower have filed a joint motion, which is subject to approval by the Court, to defer for the term of the DPA any prosecution and trial of the criminal information filed against Tower.

A number of significant factors contributed to the Department’s criminal resolution with Tower, including the company’s cooperation with the United States and Tower’s extensive remedial efforts. Tower also swiftly moved in early 2014 to terminate the three traders, made significant investments in sophisticated trade surveillance tools, increased legal and compliance resources, revised the company’s corporate governance structures and changed its senior management.

The CFTC announced today a separate settlement with Tower in connection with a related, parallel proceeding. Under the terms of that resolution with the CFTC, Tower agreed to pay approximately $67.4 million, which includes a civil monetary penalty of $24.4 million, as well as restitution and disgorgement that will be credited for any such payments made to the Department. In addition, the CFTC order imposes upon Tower other remedial and cooperation obligations in connection with any CFTC investigation pertaining to the underlying conduct.

The three traders are Kamaldeep Gandhi, 37, and Krishna Mohan, 34, both of New York, New York, and Yuchun (Bruce) Mao, 40, a citizen of the People’s Republic of China. As part of the investigation, the Department obtained an indictment against Mao in October 2018 with charges pending in the SDTX. An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. 

On Nov. 2, 2018, Gandhi pleaded guilty to two counts of conspiracy to engage in wire fraud, commodities fraud and spoofing. His sentencing is scheduled for Feb. 7, 2020, before SDTX U.S. District Judge Ewing Werlein Jr. On Nov. 6, 2018, Mohan pleaded guilty to one count of conspiracy to engage in wire fraud, commodities fraud and spoofing, and his sentencing is scheduled for Feb. 13, 2020, before U.S. District Judge Gray H. Miller of the SDTX.

The FBI’s Chicago Field Office investigated this case. Trial Attorney Matthew F. Sullivan and Assistant Chief Avi Perry of the Criminal Division’s Fraud Section and SDTX Assistant U.S. Attorney John R. Lewis prosecuted the case. The CFTC’s Division of Enforcement referred the matter to the Department and provided assistance in this matter.

Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website at https://www.justice.gov/criminal-vns/case/tower-research-dpa or call (888) 549-3945.

HOUSTON – Tower Research Capital LLC, a New York, New York-based financial services firm has entered into a resolution with the Department of Justice to resolve criminal charges related to a scheme involving thousands of episodes of unlawful trading activity in U.S. commodities markets by three former traders.

Tower entered into a deferred prosecution agreement (DPA) in connection with a criminal information filed in the Southern District of Texas (SDTX) charging the company with one count of commodities fraud. Under the terms of the DPA, Tower agreed to pay a combined $67.4 million in criminal monetary penalties, criminal disgorgement and victim compensation with the criminal monetary penalty credited for any payments made to the Commodity Futures Trading Commission (CFTC). Tower also agreed to, among other things, conduct appropriate reviews of its internal controls and policies and procedures and to modify its compliance program, where necessary, to ensure it is designed to deter and detect violations of the Commodity Exchange Act and commodities fraud statute.

“Traders at Tower Research Capital LLC fraudulently placed thousands of bogus orders they never intended to execute—to deceive other market participants and move the market for their own benefit,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “This agreement includes monetary penalties, the return of unjust profits and compensation of victims to protect our nation’s commodities markets from manipulation.”

“Free markets are not open and fair when people criminally manipulate them,” said U.S. Attorney Ryan K. Patrick of the Southern District of Texas. “Fraudsters like this will be prosecuted. This case also shows the department’s willingness to resolve cases when industry cooperates and remediates failures of internal controls.”

“When traders seek to manipulate the commodities market for personal gain, it can cause significant and long-lasting financial consequences for law-abiding citizens,” said Special Agent in Charge Emmerson Buie Jr. of the FBI’s Chicago Field Office. “The FBI will continue to work with its prosecutorial partners to safeguard the market from unlawful influence and hold violators accountable.”

According to court documents filed as part of the DPA, from approximately March 2012 until December 2013, three traders who were members of a single trading team at Tower engaged in a scheme to defraud other participants in the markets for E-Mini S&P 500, E-Mini NASDAQ 100 and E-Mini Dow futures contracts (collectively, E Mini futures contracts). The S&P 500 and NASDAQ 100 future contracts were traded on the Chicago Mercantile Exchange, while the Dow futures contracts were traded on the Chicago Board of Trade.

On thousands of occasions throughout this period, the traders fraudulently placed orders to buy and sell the E-Mini futures contracts with the intent to cancel those orders before execution, including in an attempt to profit by deceiving other market participants. By placing these orders, the traders intended to, and did, inject false and misleading information about the genuine supply and demand for E-Mini futures contracts into the markets. This deceived other market participants into believing something untrue, namely, that the visible order book accurately reflected market-based forces of supply and demand. This false and misleading information was intended to, and at times did, trick other market participants into reacting to the apparent change and imbalance in supply and demand by buying and selling E-Mini futures contracts at quantities, prices and times they otherwise likely would not have traded.

The department and Tower have filed a joint motion, which is subject to the court’s approval, to defer for the term of the DPA any prosecution and trial of the criminal information filed against Tower.

A number of significant factors contributed to the criminal resolution with Tower, including the company’s cooperation with the United States and Tower’s extensive remedial efforts. Tower also swiftly moved in early 2014 to terminate the three traders, made significant investments in sophisticated trade surveillance tools, increased legal and compliance resources, revised the company’s corporate governance structures and changed its senior management.

The CFTC announced a separate settlement with Tower today in connection with a related, parallel proceeding. Under the terms of that resolution with the CFTC, Tower agreed to pay approximately $67.4 million, which includes a civil monetary penalty of $24.4 million as well as restitution and disgorgement that will be credited for any such payments made to the department. In addition, the CFTC order imposes upon Tower other remedial and cooperation obligations in connection with any CFTC investigation pertaining to the underlying conduct.

The three traders are Kamaldeep Gandhi, 37, and Krishna Mohan, 34, both of New York, New York, and Yuchun (Bruce) Mao, 40, a citizen of the People’s Republic of China. As part of the investigation, the department obtained an indictment against Mao in October 2018 with charges pending in the SDTX. An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. 

On Nov. 2, 2018, Gandhi pleaded guilty to two counts of conspiracy to engage in wire fraud, commodities fraud and spoofing. His sentencing is scheduled for Feb. 7, 2020, before SDTX U.S. District Judge Ewing Werlein Jr. On Nov. 6, 2018, Mohan pleaded guilty to one count of conspiracy to engage in wire fraud, commodities fraud and spoofing. His sentencing is scheduled for Feb. 13, 2020, before SDTX U.S. District Judge Gray H. Miller.

The FBI’s Chicago Field Office investigated this case. Trial Attorney Matthew F. Sullivan and Assistant Chief Avi Perry of the Criminal Division’s Fraud Section and SDTX Assistant U.S. Attorney John R. Lewis prosecuted the case. The CFTC’s Division of Enforcement referred the matter to the department and provided assistance in this matter.

The Criminal Division’s Fraud Section plays a pivotal role in the Department of Justice’s fight against white-collar crime around the country.

Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website at or call (888) 549-3945.

HOUSTON – A 27-year-old man from San Jacinto County has received a 35-year prison term following his convictions of producing and possessing child pornography, announced U.S. Attorney Ryan K. Patrick. 

James Robert Tumlinson pleaded guilty April 23. 

Today, U.S. District Judge Keith P. Ellison downwardly departed from the U.S. Sentencing Guidelines and ordered Tumlinson to serve 360 months for each count of the sexual exploitation of a child, otherwise known as production of child pornography. Those sentences will run concurrently. He also received another 60 months for the possession charge which were ordered to be served consecutively for a total of 420 months in federal prison.

At the hearing, the court heard evidence regarding a pattern of abuse which rendered Tumlinson a repeat and dangerous sex offender. The government contended Tumlinson had sexually abused four other minors in addition to the two victims for which he was convicted. All four were either family members or children to whom he had access. The abuse spanned for several years.

The defense asked Judge Ellison for mercy and attempted to convince the court Tumlinson had remorse and was “treatable.” Tumlinson himself apologized for his actions, said he was not the monster he was accused of being and wanted to prove he could be better.

However, the government implored the court to hold Tumlinson accountable for the pain and trauma he caused to the young victims of his “atrocious” crimes, noting what he stole from the children cannot be replaced. The government said the guidelines were appropriate under the circumstances and that it was important to send a message to society these crimes should not be tolerated. Judge Ellison heard that each victim deserved justice after Tumlinson had violated these children then memorialized it in video.

The court also heard from the victims’ grandmother, who detailed the children’s suffering. She told the court how scared the young female victim is and how she asks almost every day if Tumlinson will get out and hurt her again.

Following the 35-year prison term, Tumlinson will be on supervised release for the rest of his life, 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.

Restitution will determined at a later date.

Tumlinson came to the attention of law enforcement after a mother of two minors reported possible abuse of her children. She stated her daughter said Tumlinson had been sexually abusing her and her younger brother. Her brother was reportedly too scared to tell anyone but she was not.

Authorities executed a search warrant, at which time they seized phones and computer media from Tumlinson’s residence. Forensic analysis yielded 6,585 images and 1,322 videos depicting child pornography.

Eight of the videos Tumlinson produced himself. Some of these depict Tumlinson violating at least two different minors via oral, vaginal and anal penetration. These videos run for a total of 38 minutes and 36 seconds. In one of the videos, Tumlinson is heard telling a minor male victim to “relax” and “it will be over soon” as he is seen anally raping the child.

The mother of the children identified both victims seen in the videos who were approximately 6 and 4 at the time.

Tumlinson 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 San Jacinto County Sheriff’s Office and the FBI conducted the investigation.

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 24-year-old Edinburg man has been ordered to prison following his conviction of trafficking meth, announced U.S. Attorney Ryan K. Patrick.

Enrique Alessandro Quintero pleaded guilty Aug. 6.

Today, U.S. District Judge David S. Morales handed Quintero a 135-month sentence to be immediately followed by five years of supervised release. In handing down the sentence, the court noted the quantity of drugs.

On or about April 10, Quintero drove a Chevrolet pickup truck towing a trailer through the U.S. Border Patrol Checkpoint near Falfurrias. After a service K-9 alerted to the vehicle, law enforcement discovered the gas tank concealed 15 bundles of pure meth.

The narcotics weighed approximately 4.778 kilograms with an estimated street value in excess of $50,000. Two additional bundles of heroin were also hidden in the gas tank.

Quintero had previously been on bond but found to have violated those conditions after he failed to appear for a court setting. The court then ordered him into custody where he has been and will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

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

HOUSTON – A Houston man has been ordered to prison following his conviction related to his theft of guns from two local pawn shops during armed robberies, announced U.S. Attorney Ryan K. Patrick.

Jacoby West, 27, pleaded guilty in February 2019.

Today, U.S. District Judge Sim Lake handed West a 168-month sentence for the robberies. He also received an additional 84 months for using a firearm during and in relation to a crime of violence which must be served consecutively to the other sentence imposed. The 21-year sentence will be immediately followed by five years of supervised release. West was also ordered to pay restitution for the cash he stole and unrecovered firearms in addition to victims’ counseling expenses.

At the hearing today, the court heard West had recruited juvenile co-conspirators and organized the robberies which involved the carjacking of a truck to use as a getaway vehicle. The court also considered victim impact statements as well as dog bite injuries a Pearland Police Department (PPD) officer had sustained as he pursued West’s co-conspirators. The officer required 48 stitches.

A Crime Stoppers tip led to West’s arrest for his involvement in the Dec. 22, 2016, armed robbery of Cash America Pawn #66 on South Wilcrest Drive in Houston and June 26, 2017, robbery of Money Mart Pawn & Jewelry on Broadway Street in Pearland.

West and others stole a total of 40 firearms in the two robberies as well as a significant amount of cash. T0 date, authorities have recovered 25 of those weapons.

West has been and will remain in custody. 

The Bureau of Alcohol, Tobacco, Firearms and Explosives, Pearland Police Department and Houston Police Department conducted the investigation. Assistant U.S. Attorney Carrie Wirsing prosecuted the case which was brought as part of the Department of Justice’s Project Safe Neighborhoods (PSN), a nationwide program to reduce gun and gang crime in America and the Houston Law Enforcement Violent Crime Initiative which seeks to proactively fight violent crime across the Greater Houston area.

A federal jury found three individuals associated with dozens of hospice and home health companies guilty today for their roles in a $154 million health care fraud scheme, one of which was a mayor in Texas at the time.

After a three-week trial, the jury found Rodney Mesquias, 47, of San Antonio, Texas, Henry McInnis, 47, of Harlingen, Texas, and Francisco Pena, 82, of Laredo, Texas, guilty of one count of conspiracy to commit health care fraud and one count of conspiracy to commit money laundering. In addition, Mesquias and McInnis were found guilty of six counts of health care fraud and one count of conspiracy to obstruct justice. Pena was also convicted of one count of health care fraud, obstruction of health care investigations and one count of false statements, while Mesquias and Pena were each convicted of one count of conspiracy to pay and receive kickbacks.

U.S. District Judge Rolando Olvera presided over the trial and set sentencing for June 17, 2020.  

“Rodney Mesquias and his co-conspirators preyed on the most vulnerable population – those in need of hospice and home health care– to line their pockets with millions of dollars and engage in lavish spending,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “I thank our law enforcement partners for their hard work and dedication to bringing these health care fraudsters to justice. We look forward to continuing our partnership as we expand the Strike Force into the Rio Grande Valley.”

“It’s disgusting how these three made millions by lying about and manipulating people’s end of life care,” said U.S. Attorney Ryan K. Patrick of the Southern District of Texas. “These men won’t have season tickets or nice cars where they are headed.”

“Hospices should provide meaningful quality of life care for patients in the final stage of their disease. Rather than help these vulnerable patients, Mesquias and McInnis operating as the Merida Health Care Group along with Dr. Francisco Pena, exploited them and their families to steal millions of dollars from the American taxpayer,” said Special Agent in Charge Christopher Combs of the FBI’s San Antonio Field Office. “The FBI is committed to aggressively investigating and bringing to justice those who undermine our health care system.”

“The decision to provide hospice services should be based on a patient’s medical condition and desire for palliative care, not the selfish motives of hospice executives intending to line their own pockets,” said Special Agent in Charge C.J. Porter for the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Region. “Our agency will continue to protect Medicare patients and Medicare itself from such unscrupulous individuals.”

According to evidence presented at trial, from 2009 to 2018, Mesquias, McInnis and Pena engaged in a scheme that involved over $150 million in false and fraudulent claims for hospice and other health care services. Mesquias owned and controlled the Merida Group, a large health care company that operated dozens of locations throughout Texas. McInnis was CEO. Pena, a licensed physician, was a medical director for the Merida Group and was at the time the mayor of Rio Bravo, Texas. According to evidence presented at trial, the Merida Group enrolled patients with long-term incurable diseases, such as Alzheimer’s and dementia, at group homes, nursing homes, and in housing projects by falsely telling them that they had less than six months to live, and sent chaplains to lie to the patients and discuss last rites and preparation for their imminent death. In fact, the patients were not suffering from a terminal illness that was expected to result in their death within six months, as is required to qualify for hospice services, and were in some instances walking, driving, working and even coaching athletic sporting events, the evidence at trial showed. However, the defendants kept the patients on services for multiple years in order to increase revenue. Mesquias also fired employees who refused to go along with the fraud, and directed them not to “[expletive] with his patients, or [expletive] with his money” by discharging patients from services, the evidence at trial showed.  Pena told a cooperating witness that, with respect to hospice patients, “the way you make money is by keeping them alive as long as possible,” according to trial testimony. 

The evidence further established that Pena gave a false statement to the FBI and directed others to obstruct the FBI’s investigation by covering up Pena’s involvement in accepting kickbacks for hospice patients from his mayoral office at Rio Bravo City Hall and elsewhere.  The evidence also established that Mesquias and McInnis obstructed justice by causing the creation of false and fictitious medical records and produced them to a federal grand jury in order to avoid Indictment.  The records added false diagnostic information making it appear that patients were dying when, in fact, they were not.

According to evidence presented at trial, the scheme involved laundering the proceeds of the fraud by, for example, placing a company in the name of the girlfriend of a co-conspirator physician to conceal the distribution of hundreds of thousands of dollars in illegal kickbacks that were provided to the physician in exchange for home health and hospice referrals. Mesquias and McInnis used proceeds derived from the scheme to purchase expensive vehicles such as a Porsche, expensive jewelry, luxury clothing from high-end retailers such as Louis Vuitton, exclusive real estate, season tickets for premium seating to see the San Antonio Spurs and a security detail and bottle service at high end Las Vegas nightclubs such as Hakkasan and Omnia, the evidence showed. Mesquias and McInnis treated physicians to lavish parties at these elite nightclubs, plying them with tens of thousands of dollars in alcohol and other perks in exchange for medically unnecessary patient referrals. 

Mesquias caused kickbacks and bribes to be paid to medical directors, including Pena, for the Merida Group’s affiliated entities in exchange for certifying that patients qualified for services when, in fact, they did not, and for referring patients for such services, the evidence showed. 

HHS-OIG’s McAllen Field Office; the FBI’s San Antonio Field Office, including the Laredo and McAllen Resident Agency Offices; and the Texas Health and Human Services Commission investigated the case with the assistance of the Texas Attorney General’s Medicaid Fraud Control Unit.  Trial Attorney Kevin Lowell and Assistant Chief Jacob Foster of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Andrew Swartz of the Southern District of Texas are prosecuting the case. 

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

CORPUS CHRISTI, Texas – A 37-year-old Alton resident has been ordered to federal prison following his conviction for conspiring to smuggle nearly 20 kilograms of cocaine, announced U.S. Attorney Ryan K. Patrick.

Eddy Garcia-Abreu pleaded guilty July 30.

Today, U.S. District Judge Nelva Gonzales Ramos handed Garcia-Abreu a 120-month sentence to be immediately followed by five years of supervised release. In handing down the sentence, the court noted that at the time of the offense, Garcia-Abreu was still on supervised release from a prior alien smuggling conviction.

On May 19, authorities stopped Garcia-Abreu for a routine safety inspection. He immediately became nervous as they examined the tractor-trailer he was driving. They soon discovered a modification to the king pin area where the trailer was attached to the tractor and immediately called a K-9. It alerted to the vehicle. Law enforcement unhitched the trailer and found 20 bundles inside a hidden compartment containing 19.8 kilograms of cocaine.

The narcotics have an estimated street value of $500,000.

Garcia-Abreu 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 Texas Department of Public Safety. Assistant U.S. Attorney Joel Dunn prosecuted the case.

LAREDO, Texas – A 48-year-old resident of Hebbronville has entered a guilty plea to conspiring to possess with intent to deliver 58.5 kilograms of marijuana, announced U.S. Attorney Ryan K. Patrick. 

Jaime Saul Benavides admitted he knowingly attempted to smuggle the narcotics through the a Border Patrol (BP) checkpoint.

On Aug. 11, Benavides attempted to drive a tan Chevrolet pick-up truck through the Border Patrol Checkpoint near Hebbronville. Upon arrival, a K-9 alerted to the possible presence of concealed narcotics in the truck. Authorities conducted an X-ray examination which revealed anomalies in the truck’s diesel tank. They found a hidden trap door connecting the toolbox to the diesel tank which resulted in the discovery of nine bundles of marijuana.

The drugs had a total weight of  weighing 58.5 kilograms with an estimated street value of $48,000.

Sentencing will be set at a later date before U.S. District Judge Diana Saldaña has At that time, Benavides faces up to 30 years in prison as well as a possible $2 million maximum fine.

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

The Drug Enforcement Administration conducted the investigation with the assistance of Border Patrol. Assistant U.S. Attorney Michael Makens is prosecuting the case. 

McALLEN, Texas - A federal jury found three men associated with a Texas health care company guilty today for their roles in a $150 million health care fraud scheme, one of which was a mayor in Texas at the time.

After a three-week trial, the jury found Rodney Mesquias, 47, San Antonio, Henry McInnis, 47, Harlingen, and Francisco Pena, 82, Laredo, guilty of one count of conspiracy to commit health care fraud and one count of conspiracy to commit money laundering. In addition, Mesquias and McInnis were found guilty of six counts of health care fraud and one count of conspiracy to obstruct justice. Pena was also convicted of one count of health care fraud, obstruction of health care investigations and one count of false statements, while Mesquias and Pena were each convicted of one count of conspiracy to pay and receive kickbacks.

U.S. District Judge Rolando Olvera presided over the trial and set sentencing for June 17.  

“Rodney Mesquias and his co-conspirators preyed on the most vulnerable population – those in need of hospice and home health care – to line their pockets with millions of dollars and engage in lavish spending,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “I thank our law enforcement partners for their hard work and dedication to bringing these health care fraudsters to justice. We look forward to continuing our partnership as we expand the Strike Force into the Rio Grande Valley.”

“It’s disgusting how these three made millions by lying about and manipulating people’s end of life care,” said U.S. Attorney Ryan K. Patrick of the Southern District of Texas (SDTX). “These men won’t have season tickets or nice cars where they are headed.”

“Hospices should provide meaningful quality of life care for patients in the final stage of their disease. Rather than help these vulnerable patients, Mesquias and McInnis operating as the Merida Health Care Group along with Dr. Francisco Pena, exploited them and their families to steal millions of dollars from the American taxpayer,” said Special Agent in Charge Christopher Combs of the FBI’s San Antonio Field Office. “The FBI is committed to aggressively investigating and bringing to justice those who undermine our health care system.”

“The decision to provide hospice services should be based on a patient’s medical condition and desire for palliative care, not the selfish motives of hospice executives intending to line their own pockets,” said Special Agent in Charge C.J. Porter for the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Region. “Our agency will continue to protect Medicare patients and Medicare itself from such unscrupulous individuals.”

According to evidence presented at trial, from 2009 to 2018, Mesquias, McInnis and Pena engaged in a scheme that involved over $150 million in false and fraudulent claims for hospice and other health care services. Mesquias owned and controlled the Merida Group, a large health care company that operated dozens of locations throughout Texas. McInnis was CEO. Pena, a licensed physician, was a medical director for the Merida Group and was at the time also the mayor of Rio Bravo. According to evidence presented at trial, the Merida Group enrolled patients with long-term incurable diseases, such as Alzheimers and dementia, at group homes, nursing homes and in housing projects by falsely telling them they had less than six months to live and sent chaplains to lie to the patients and discuss last rites and preparation for their imminent death. In fact, the patients were not suffering from a terminal illness that was expected to result in their death within six months, as is required to qualify for hospice services, and were in some instances walking, driving, working and even coaching athletic sporting events. However, the defendants kept the patients on services for multiple years in order to increase revenue. Mesquias also fired employees who refused to go along with the fraud and directed them not to “[expletive] with his patients, or [expletive] with his money” by discharging patients from services.   Pena told a cooperating witness that, with respect to hospice patients, “the way you make money is by keeping them alive as long as possible,” according to trial testimony. 

The evidence further established Pena gave a false statement to the FBI and directed others to obstruct the FBI’s investigation by covering up Pena’s involvement in accepting kickbacks for hospice patients from his mayoral office at Rio Bravo City Hall and elsewhere. The evidence also established that Mesquias and McInnis obstructed justice by causing the creation of false and fictitious medical records and produced them to a federal grand jury in order to avoid indictment. The records added false diagnostic information making it appear that patients were dying when, in fact, they were not.

According to evidence presented at trial, the scheme involved laundering the proceeds of the fraud. For example, they placed a company in the name of the girlfriend of a co-conspirator physician to conceal the distribution of hundreds of thousands of dollars in illegal kickbacks that were provided to the physician in exchange for home health and hospice referrals. Mesquias and McInnis used proceeds derived from the scheme to purchase expensive vehicles such as a Porsche, expensive jewelry, luxury clothing from high-end retailers such as Louis Vuitton, exclusive real estate, season tickets for premium seating to see the San Antonio Spurs, and a security detail and bottle service at high end Las Vegas nightclubs such as Hakkasan and Omnia. Mesquias and McInnis treated physicians to lavish parties at these elite nightclubs, plying them with tens of thousands of dollars in alcohol and other perks in exchange for medically unnecessary patient referrals. 

Mesquias caused kickbacks and bribes to be paid to medical directors, including Pena, for the Merida Group’s affiliated entities in exchange for certifying that patients qualified for services when, in fact, they did not, and for referring patients for such services.

HHS-OIG’s McAllen Field Office; the FBI’s San Antonio Field Office, including the Laredo and McAllen Resident Agency Offices; and the Texas Health and Human Services Commission investigated the case with the assistance of the Texas Attorney General’s Medicaid Fraud Control Unit. Trial Attorney Kevin Lowell and Assistant Chief Jacob Foster of the Criminal Division’s Fraud Section and SDTX Assistant U.S. Attorney Andrew Swartz 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 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.

HOUSTON – A federal jury has convicted a 70-year-old Houston man of fraudulently taking government money for more than 20 years, announced U.S. Attorney Ryan K. Patrick.

The jury deliberated for less than an hour before convicting Fred Samson following a two-day trial.

Samson’s parents passed away in Poland in 1995. However, the Social Security Administration (SSA) was unaware of this and believed they still resided in Houston. As such, SSA continued to pay their monthly retirement benefits. 

The government provided evidence and testimony demonstrating Samson wrongly collected these benefits that were intended for his deceased parents.

The jury saw copies of U.S. Treasury checks with endorsements containing Samson’s signature. Bank records also revealed Samson opened a joint bank account in his and his mother’s name more than a decade after she had passed away and directed her monthly benefits into that account. Witness testimony detailed withdrawals made from accounts held in both his parents’ names. Samson was the only person who had made those withdrawals. 

In 2016, SSA attempted to contact Samson’s father at his address of record in Houston. The jury heard testimony Samson had claimed, falsely, that his parents moved to Poland two years prior. 

The jury also heard about several inconsistent statements Samson made over the course of the investigation. He first claimed he had been sending the money to Poland, but later said he was using the money because his parents gave him permission to do so. He also stated he had been using the funds since 2000, but later admitted he had done so since they had passed away. 

He later acknowledged he wrote a letter to SSA saying his parents were still alive, admitting he was afraid of getting in trouble and did not have the money to pay it back. 

At trial, Samson tried to claim he had been unaware his parents had passed away. He said he had a falling out with his family and had not spoken with his parents since they moved back to Poland in the early ‘90s. He also argued there was a language barrier and may not have understood details he discussed with authorities.

The jury did not believe Samson’s claims and found him guilty as charged.

Authorities estimate Samson illegally claimed more than $90,000 in government funds as a result of the scheme. 

U.S. District Judge Sim Lake presided over the trial and set sentencing for  February 2020. At that time, Samson faces up to 10 years in federal prison as well as a possible $250,000 maximum fine. He may be required to also pay restitution to SSA. Samson was permitted to remain on bond pending that hearing.

SSA-OIG conducted the investigation. Special Assistant U.S. Attorney Benjamin Sandel and Assistant U.S. Attorney Michael Day are prosecuting the case.

HOUSTON – A woman has admitted she for made and subscribed to a false tax return, announced U.S. Attorney Ryan K. Patrick.

Vanessa Ben pleaded guilty today.

Ben willfully filed her U.S. Individual Income Tax return. However, upon signing the form attesting to its validity, she was aware it contained false information. She filed that return even though she knew she was not entitled to claim several items as stated, to include business income, taxable income, total tax and an income tax refund.

U.S. District Judge Hittner accepted the plea today and set sentencing for Feb. 3, 2020. At that time, Ben faces up to three years in federal prison and a possible $250,000 maximum fine.

She was permitted to remain on bond pending that hearing.

IRS - Criminal Investigation conducted the investigation. Assistant U.S. Attorney Rodolfo Ramirez is prosecuting the case.

LAREDO, Texas – A 40-year-old Laredoan faces up to life in prison for importing a large amount of cocaine via the Gateway to the Americas International Bridge, announced U.S. Attorney Ryan K. Patrick.

Yuriria Verastegui attempted to enter the United States July 24 driving a Ford SUV. Authorities noticed tampering with its interior quarter panels, lifted a tray to access them and found 16 bundles of cocaine.

The drugs weighed a total of approximately 16 kilograms with a value of $512,000.

Verastegui pleaded guilty to conspiracy to possess with the intent to distribute cocaine, admitting she knew there were narcotics in her vehicle and expected to be paid $9,600 for transporting them.   

U.S. District Court Judge Marina Garcia Marmolejo will impose sentencing Feb. 24, 2020. At that time, Verastegui faces a minimum of 10 years and up to life imprisonment as well as a possible $10 million maximum fine. She has been in custody since her arrest where she will remain pending that hearing.

Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with assistance from Customs and Border Protection. Assistant U.S. Attorney Anthony J. Evans is prosecuting the cases.

HOUSTON - A federal judge has sentenced a 25-year-old Houston resident to 19  years in prison following his convictions for meth distribution and possessing a firearm in furtherance of a narcotics conspiracy, announced U.S. Attorney Ryan K. Patrick along with Special Agent in Charge Fred Milanowski of the Bureau of Alcohol, Tobacco, Firearms and Explosives and Regional Director Jason Taylor of Texas Department of Public Safety (DPS) - Criminal Investigations Division.

Elias Larry Luna pleaded guilty July 9. Also sentenced today were co-conspirators Alfonso Rios and Jesus Jimenez, both 30 and also of Houston. They had previously admitted to two counts of narcotics distribution acting in conspiracy with Luna.

Today, U.S. District Judge Nancy Atlas ordered Luna to serve a total of 228 months in federal prison which includes 168 months for the narcotics convictions and a consecutive 60 months for the related firearms charge. The 19-year sentence will be immediately followed by five years of supervised release. At the hearing, the court heard additional evidence regarding the firearms Luna sold in conjunction with the narcotics distribution. These included three semi-automatic rifles sold to an undercover agent during the investigation leading to Luna’s arrest. The court also heard about Luna’s involvement in the narcotics trafficking. In imposing the sentence, Judge Atlas noted the event leading to Luna’s arrest was the most “significant and negative transactions” she had seen.   

Rios and Jimenez both received 15-year sentences.

“Removing armed drug traffickers from the streets will have an immediate impact on the greater Houston community,” said Milanowski. “We will continue our work to dismantle drug trafficking organizations through our partnerships with local, state and federal authorities.”

"DPS worked collaboratively with our federal, state and local agency partners to disrupt a violent drug trafficking organization," said Taylor. "DPS Criminal Investigations Division special agents, analysts and several other members of the department worked many hours throughout this investigation, and their work has helped make Texas safer."

At the time of his plea, Luna admitted he took part in a drug trafficking conspiracy to distribute approximately 13 kilograms of meth in the Heights neighborhood of Houston in September 2018. Luna also admitted he was armed with a firearm during the conspiracy.

In August 2018, authorities began investigating Luna for trafficking narcotics in the Houston area. The investigation culminated in a September 2018 sting operation resulting in his arrest and that of his co-conspirators while attempting to sell approximately 13 kilograms of meth for $95,250. During the operation, Luna attempted to engage in the narcotics sale, while Rios and Jimenez provided counter-surveillance, attempting to conceal the drug trafficking. Despite the presence of firearms, law enforcement ultimately apprehended all three men without violence.

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

ATF and DPS led the investigation as part of a multi-agency effort through the Texas Anti-Gang Center with the assistance of the Drug Enforcement Administration and Houston Police Department. Assistant U.S. Attorney Jason Corley is prosecuting the case.

LAREDO, Texas – A duo accused of conspiring to possess meth now face up to life imprisonment after pleading guilty to their respective roles in the crime, announced U.S. Attorney Ryan K. Patrick.

Juan Carlos Hernandez, 38, a lawful permanent resident, and Isidro Gonzalez, 44, both of whom reside in Dallas, pleaded guilty today in federal court.

On June 15, Hernandez attempted admission into the country as a passenger on a commercial bus at the Lincoln Juarez Port of Entry in Laredo. After an x-ray revealed anomalies in one of his suitcases, a K-9 alerted to that bag. Ultimately, authorities seized 24 bottles appearing to be a legitimate beverage product. However, they actually held a total of 16.25 kilograms of liquid meth.

Gonzalez asked his friend, Hernandez, to transport the bottles from the Hernandez family home in Ocampo, Guanajuato, Mexico, to his residence in Dallas.

Gonzalez said the meth was converted from liquid to crystal form at his residence. Authorities conducted a search at that location and seized approximately 13.5 and two kilograms of liquid and crystal meth, respectively.

Sentencing for Hernandez and Gonzalez has been set for Feb. 22 and 24, respectively, before U.S. District Judge Marina Garcia-Marmolejo. At that time, they face up to life in prison as well as a possible $10 million maximum fine.  

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

HOUSTON – A pair of Houston men are set to appear in federal court for their alleged roles in the recent armored car robbery attempt at a local Walgreens, announced U.S. Attorney Ryan K. Patrick.

Corderas Simmons, 31, and Jeremy Boniaby, 28, both of Houston, are charged by criminal complaint with aiding and abetting attempted interference with commerce by robbery and aiding and abetting discharging a firearm during or in relation to that robbery. They are set to appear before U.S. Magistrate Judge Peter Bray at 1:30 p.m.

The complaint alleges that on Nov. 1, Boniaby drove a stolen white Ford F-250 with Simmons as a passenger to the Walgreens at 16233 Post Oak in Houston. Soon after, an armored Garda truck arrived for its scheduled stop. The charges allege that as soon as the driver side door of the armored truck opened, so did the rear passenger door of the stolen pickup.

Law enforcement had been following both vehicles and quickly converged on the stolen truck, according to the complaint. Boniaby allegedly fled the parking lot,  drove over a median at South Post Oak and entered a strip center. The charges allege Boniaby exited the vehicle wearing gloves and a hooded sweatshirt and fled on foot. A Special Weapons and Tactics (SWAT) team pursued and took him into custody, according to the complaint. Meanwhile, Simmons allegedly exited the back seat of the vehicle and also fled on foot, wearing a mask and gloves. Shortly thereafter, he was also taken into custody.      

If convicted, Simmons and Boniaby face up to 20 years in prison for the attempted interference with commerce by robbery charge. They would also receive, upon conviction, a mandatory minimum of 10 years and up to life in prison for the discharge of the firearm which must be served consecutively to any other prison term imposed.  

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

This is an example of coordination between law enforcement who are part of the Houston Law Enforcement Violent Crime Initiative which combines personnel and resources from numerous federal, state and local agencies. The goal is to proactively fight and reduce violent crime across the Greater Houston area by targeting the region’s most violent offenders, augmenting investigative and prosecutorial efforts, and enhancing training, public awareness and education.

CORPUS CHRISTI, Texas – A 23-year-old resident of Louisiana has admitted he unlawfully possessed a firearm following a previous felony conviction, announced U.S. Attorney Ryan K. Patrick.

Blake Wain was previously convicted of multiple felony offenses out of Louisiana to include false imprisonment armed with a deadly weapon, conspiracy to commit robbery and possession with intent to distribute meth. Per federal law, he is prohibited from possession of a firearm due to these convictions.

Wain was on parole for these offenses July 12 when authorities found and arrested him for a violation of that parole. He was sitting in a vehicle’s passenger seat. At his feet was a Glock, model 33, .357 caliber semi-automatic pistol.

He admitted the weapon was his.

U.S. District Judge David Morales has set sentencing for Feb. 4, 2020. At that time, Wain faces a minimum of 15 years and up to life in federal prison.

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

The Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Marshals Fugitive Task Force and Corpus Christi Police Department conducted the investigation. Assistant U.S. Attorney Sara Popejoy is prosecuting the case.

CORPUS CHRISTI, Texas – Two Corpus Christi men have been ordered to federal prison after admitting to robbery and brandishing a firearm in furtherance of a crime of violence, announced U.S. Attorney Ryan K. Patrick.

Corey Alexander Newman, 26, pleaded guilty Jan. 31, while Francisco Chavera, 22, pleaded guilty July 8. Both admitted to their participation in a robbery at the Texas Food Mart in the 6100 block of Williams Aug. 5, 2018, along with Matthew Joseph Bryant, 25, and Nathealle Avori Tyrell Jones, 22, both of Corpus Christi.

Today, Senior U.S. District Judge Janis Graham Jack handed Chavera a 30-month sentence for the robbery. He also received an additional 84 months for the firearms charge which must be served consecutively to the other sentence imposed. The sentences will be immediately followed by five years of supervised release. Newman received a 10-month sentence for the robbery and an additional and consecutive 36 months for the firearms charge. The sentences will be immediately followed by three years of supervised release. In handing down the sentences, the court noted the dangerousness of the offense and the need to protect the public.

Senior U.S. District Judge Janis Graham Jack previously sentenced Bryant and Jones each to a total of 114 months in prison as well as five years of supervised release following completion of their sentences.

Officers responded to the aggravated robbery and observed a vehicle matching the reported description of the suspects’ vehicle and attempted to conduct a traffic stop. The vehicle fled until crashing into a utility pole, at which time all four occupants ran. After a short foot pursuit, authorities arrested all four individuals.

At that time, law enforcement searched the vehicle and the surrounding area and discovered U.S. currency, convenience store items, cigarettes, disposable gloves and a loaded handgun with an extended magazine.

Surveillance footage at the location showed two males wearing dark clothing and bandanas covering their faces had entered the store. As one male, who was later identified as Bryant, stayed by the front door and pointed a handgun at the clerk. The other male, later confirmed to be Chavera, went behind the counter and emptied the cash register into a bag along with cigarettes and flavored cigars. Both men then took the clerk’s cellular phone and wallet before leaving the store and fleeing in a dark colored sedan Jones was driving. 

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

The Corpus Christi Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney Lance Watt is prosecuting the case.