Southern District of Texas

The former CEO and chief operations officer (COO) of a Monaco-based intermediary company have pleaded guilty for their roles in a scheme to corruptly facilitate millions of dollars in bribe payments to officials in multiple countries. These included Algeria, Angola, Azerbaijan, the Democratic Republic of Congo, Iran, Iraq, Kazakhstan, Libya and Syria. The company’s former business development director also pleaded guilty for his role in paying bribes in Libya.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ryan K. Patrick of the Southern District of Texas, Assistant Director in Charge Timothy R. Slater of the FBI’s Washington Field Office, Inspector in Charge Adrian Gonzales of the U.S. Postal Inspection Service (USPIS) Houston Division and Special Agent in Charge D. Richard Goss of the IRS-Criminal Investigation’s (IRS-CI) Houston Field Office made the announcement.

Cyrus Ahsani, 51, and Saman Ahsani, 46, both of United Kingdom (UK), each pleaded guilty March 25 to one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA), for conspiring to facilitate bribes on behalf of companies in foreign countries in order to secure oil and gas contracts. UK resident Steven Hunter, 50, former business development director, pleaded guilty Aug. 2, 2018, to one count of conspiracy to violate the FCPA. Cyrus and Saman Ahsani are set for sentencing April 20, 2020, before U.S. District Judge Vanessa Gilmore of the Southern District of Texas. Hunter’s sentencing is scheduled for March 13, 2020, before U.S. District Judge David Hittner.    

According to court documents, former U.S. resident and CEO Cyrus Ahsani and former COO Saman Ahsani managed a Monaco-based intermediary company that provided services for multinational companies operating in the energy sector. From approximately 1999 to 2016, the Ahsanis conspired with others, including multiple companies and individuals, to make millions of dollars in bribe payments to government officials in Algeria, Angola, Azerbaijan, the Democratic Republic of Congo, Iran, Iraq, Kazakhstan, Libya and Syria. 

Additionally, court documents reflect Cyrus and Saman Ahsani laundered the proceeds of their bribery scheme in order to promote and conceal the schemes and to cause the destruction of evidence in order to obstruct investigations in the United States and elsewhere. Hunter participated in the conspiracy to violate the FCPA by, among other things, facilitating bribe payments to Libyan officials between about 2009 and 2015.

The FBI, IRS-Criminal Investigation and U.S. Postal Inspection Service conducted the investigation. Trial Attorneys Dennis R. Kihm, Gerald M. Moody Jr., Jonathan P. Robell and Gwendolyn A. Stamper of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Suzanne Elmilady of the Southern District of Texas are prosecuting the case. The Criminal Division’s Office of International Affairs also provided substantial assistance in this matter.

The governments of Australia, Canada, France, Guernsey, Italy, Monaco, the Netherlands, Portugal, Switzerland and UK provided significant assistance in this matter as did the U.S. Securities and Exchange Commission and Eurojust.

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

HOUSTON  - The former CEO and chief operations officer (COO) of a Monaco-based intermediary company have pleaded guilty for their roles in a scheme to corruptly facilitate millions of dollars in bribe payments to officials in multiple countries. These included Algeria, Angola, Azerbaijan, the Democratic Republic of Congo, Iran, Iraq, Kazakhstan, Libya and Syria. The company’s former business development director also pleaded guilty for his role in paying bribes in Libya.

Cyrus Ahsani, 51, and Saman Ahsani, 46, both of United Kingdom (UK), each pleaded guilty March 25 to one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA), Conspiring to facilitate bribes on behalf of companies in foreign countries in order to secure oil and gas contracts. UK resident Steven Hunter, 50, former business development director, pleaded guilty Aug. 2, 2018, to one count of conspiracy to violate the FCPA. Cyrus and Saman Ahsani are set for sentencing April 20, 2020, before U.S. District Judge Vanessa Gilmore of the Southern District of Texas. Hunter’s sentencing is scheduled for March 13, 2020, before U.S. District Judge David Hittner.    

According to court documents, former U.S. resident and CEO Cyrus Ahsani and former COO Saman Ahsani managed a Monaco-based intermediary company that provided services for multinational companies operating in the energy sector. From approximately 1999 to 2016, the Ahsanis conspired with others, including multiple companies and individuals, to make millions of dollars in bribe payments to government officials in Algeria, Angola, Azerbaijan, the Democratic Republic of Congo, Iran, Iraq, Kazakhstan, Libya and Syria. 

Additionally, court documents reflect Cyrus and Saman Ahsani laundered the proceeds of their bribery scheme in order to promote and conceal the schemes and to cause the destruction of evidence in order to obstruct investigations in the United States and elsewhere. Hunter participated in the conspiracy to violate the FCPA by, among other things, facilitating bribe payments to Libyan officials between about 2009 and 2015.

The FBI, IRS-Criminal Investigation and U.S. Postal Inspection Service con ducted the investigation. Trial Attorneys Dennis R. Kihm, Gerald M. Moody Jr., Jonathan P. Robell and Gwendolyn A. Stamper of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Suzanne Elmilady of the Southern District of Texas are prosecuting the case. The Criminal Division’s Office of International Affairs also provided substantial assistance in this matter.

The governments of Australia, Canada, France, Guernsey, Italy, Monaco, the Netherlands, Portugal, Switzerland and UK provided significant assistance in this matter as did the U.S. Securities and Exchange Commission and Eurojust.

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

McALLEN, Texas – Three more individuals have been charged in connection with a long-running scheme to defraud a financial institution in a scheme to obtain car loans in the Rio Grande Valley, announced U.S. Attorney Ryan K. Patrick.

A federal grand jury returned the superseding indictment under seal Oct. 22 against Jorge Garza, 46, San Antonio; Samuel Sanchez, 55, McAllen; and Soundra Lopez, 52, Weslaco. It was unsealed in its entirety today as authorities arrested Sanchez. He is expected to make his initial appearances before U.S. Magistrate Judge Juan Alanis this morning. Garza and Lopez appeared in federal court last week following their arrests and were permitted release upon posting bond pending further criminal proceedings.

The three are charged with conspiracy to commit bank fraud.

Sanchez and Lopez allegedly provided materially false information to County and Municipal Employee’s Credit Union (CMECU) regarding borrower creditworthiness in order to fund motor vehicle purchases. Garza, Sanchez and Lopez caused CMECU to fund approximately $2,287,720 in fraudulent loans, according to the superseding indictment. 

Three car dealership employees were previously charged in relation to this scheme - Ronnie Joe Gomez, 44, Pharr; David Salinas, 45, McAllen; and Jorge Villanueva 51, San Antonio. 

Gomez and Salinas are charged with wire fraud, while Villanueva is charged with wire fraud against a financial institution. Garza, Sanchez and Lopez are all charged with conspiracy to commit bank fraud. Gomez and Salinas face up to 20 years in prison and a possible $250,000 maximum fine, while the remaining defendants could receive a maximum 30-year prison term and up to a $1 million potential fine, upon conviction.

The FBI conducted the investigation. Assistant U.S. Attorney Frances E. Blake is prosecuting the case.

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

LAREDO, Texas – A 21-year-old resident of Nuevo Laredo, Tamaulipas, Mexico, has been ordered to federal prison following his conviction for conspiring to import approximately 15 kilograms of cocaine into the United States from Mexico, announced U.S. Attorney Ryan K. Patrick.

Emmanuel Enrique Martinez-Garcia pleaded guilty Sept. 4.

Today, U.S. District Judge Marina Garcia Marmolejo imposed a sentence of 48 months and one day in prison. Not a U.S. citizen, he is expected to face removal proceedings following his imprisonment. At the hearing, the court heard additional information that detailed how he coordinated the drug smuggling event with traffickers through text messages. In handing down the sentence, the court noted Martinez-Garcia knew what he was doing when he agreed to join the conspiracy and that there was no excuse for importing cocaine into the United States.

On Dec. 10, 2018, Martinez-Garcia applied for admission into the United States via the Gateway to the Americas Bridge Port of Entry in Laredo. During secondary inspection, a K-9 inspected the vehicle and gave a positive alert to the possible presence of concealed narcotics or humans.

Authorities then conducted a non-intrusive X-ray scan of the white F-150, revealing anomalies around the rear gas tank area of the vehicle. They inspected the area and discovered multiple sealed packages wrapped in tape. They probed one of the packages and found a white powdery substance which tested positive for cocaine. Law enforcement ultimately discovered a total of 15 packages of cocaine with an approximate value of $372,000.

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

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

HOUSTON – With the plea of an 80-year-old Houston man, all 14 charged in the scam involving Continuum Healthcare and its various health centers have been convicted, announced U.S. Attorney Ryan K. Patrick.

Bobby Rouse admitted to conspiring to pay and receive kickbacks and to money laundering relating to the Medicare program today.

A total of 13 others have been convicted in relation to the scheme. A federal jury convicted Cheryl Waller, 73, of Houston, March 2, 2017, after a three-day trial on one count of conspiracy to pay and receive kickbacks and one count of receiving kickbacks. Those all convicted on the conspiracy count include Steven Houseworth, 46, James Bobino, 50, Ernestine Johnson, 60, Jackie Harris, 56, and Vermon Lacy III, 35, all of Houston; David Edson, 71, Palm Harbor, Florida; Jeffery Parsons, 60, Crockett; Aretha Johnson, 67, Wimberley; Inger Michelle Pace, 57, Missouri City; Ronald Turner, 59, Fresno; Deborah Davis, 56, Atlanta, Georgia; and Mary Browning, 71, Beasley. Edson and Parsons were also convicted of two counts of money laundering. Johnson also pleaded guilty to one count of money laundering, while Pace and Turner each further admitted to paying and receiving kickbacks.

Rouse, Houseworth, Edson and Parsons were part of the executive team for Continuum Healthcare LLC, which owned Westbury Community Hospital in Houston as well as community mental health centers in the Houston area known by their locations as Hornwood, Baytown and Missouri City.

During his plea today, Rouse admitted to participating in a kickback scheme to pay co-defendants to bring patients to Continuum. He admitted to causing Medicare to pay $18.8 million based on false and fraudulent claims.

Each location operated a partial hospitalization program (PHP). The PHP was supposed to be a treatment program for individuals with mental illness, intended to closely resemble a highly structured, short-term hospital inpatient program. However, while it was a distinct and organized intensive treatment program, it offered less than 24-hour daily care.

In 2010, Continuum opened Westbury Community Hospital with Hornwood and Baytown becoming outpatient centers and continuing to operate their existing PHPs under the Westbury name. Westbury also opened a PHP.

Rouse, Houseworth, Edson and Parsons were responsible for the day-to-day operation of Continuum/Westbury and were involved in the implementation of the various kickback programs. Numerous people were referred for treatment in exchange for payment. However, the vast majority did not qualify for PHP services, because they were not experiencing an acute psychotic episode or were actually suffering from mental retardation, dementia or Alzheimer’s.

Aretha Johnson, Pace, Bobino, Waller, Browning and Davis each owned personal care homes in Houston, while Ernestine Johnson, Harris, Lacy and Turner were marketers for Continuum. Each admitted receiving payment to refer the patients, receiving amounts ranging from $130,000 t0 $2.6 million each.

In total, Continuum billed Medicare approximately $189 million in total for fraudulent PHP services and Medicaid paid approximately $66 million on those clams.

U.S. District Judge Gray Miller accepted the plea and has set sentencing for Jan. 23, 2020, at which time Rouse faces up to 10 years in prison and a possible $250,000 maximum fine. Rouse was permitted to remain on bond pending that hearing.

The FBI, Department of Health and Human Services - Office of the Inspector General, Texas Attorney General's Medicaid Fraud Control Unit and IRS - Criminal Investigation participated in the joint investigation. Assistant U.S. Attorneys Tina Ansari and Special Assistant U.S. Attorney Justin Blan are prosecuting the case.

HOUSTON – Two women and two men residing in Houston are set to appear in federal court for making false statements during the acquisition of firearms, announced U.S. Attorney Ryan K. Patrick.

A federal grand jury returned the 29-count superseding indictment today. All were previously charged July 3. They are expected to appear again in federal court today at 10 a.m. before U.S. Magistrate Judge Peter Bray.  

Maribel Santana-Cerdo, 42, Ariceli Santana, 44, Carlos Joel Hernandez, 24, and Johnny Talavera, 26, all of Houston, allegedly straw purchased 71 firearms. 

“Straw purchasing” occurs when someone professes to be purchasing a firearm for themselves, when in actuality, they provide it to someone else, usually not legally able to do it themselves.

If convicted, each of the violations carries a punishment of up to 10 years imprisonment and a $250,000 maximum possible fine.

The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney Steven Schammel is prosecuting the case.

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

LAREDO, Texas – Four people face up to life in prison on recent drug charges involving meth following the return of several Laredo federal indictments, announced U.S. Attorney Ryan K. Patrick. Two men face charges for trafficking a large amount of marijuana and ammunition, while four others were allegedly involved in the transportation of illegal aliens.

All were originally charged via criminal complaints and are currently in custody. Three are set to appear before U.S. Magistrate Judge Sam Sheldon at 1 p.m. today, while others are scheduled for Oct. 31 at 1 p.m. The Laredo grand jury returned the indictments Oct. 22.

Mexican nationals Nicolas De La Garza Salinas, 50, and Miguel Angel Flores Diaz, 34; and Monica Christine Canales Rodriguez, 52, Dallas, are all charged in separate but similar cases. Each is charged with one count of conspiracy as well as importation of meth. Rodriguez also faces a third count of importing heroin. Two more cases against Mexican national Ramces Chavez-Gomez, 30, and Jose Gonzalo Ojeda, 24, Laredo, allege conspiracy and possession with intent to distribute multiple kilogram quantities of meth and marijuana, respectively. The grand jury returned a fifth indictment against Julio Cesar Vega-Amaral, 42, for smuggling ammunition into the country.

Clarence J. Lee, 60, Ellis L. Boston, 47, and Julie Perez, 33, all of San Antonio, are charged together, while the final indictment charges Sebastian Mosley, 48, Tyler. These four are all charged with conspiracy to transport illegal aliens.

On Sept. 25, Salinas allegedly attempted to entered the United States through the Lincoln-Juarez International Bridge in Laredo. The charges allege that during inspection, authorities soon discovered approximately 31.64 kilograms of a white liquid substance that tested positive for meth concealed within the gas tank.

Flores Diaz allegedly entered the United States on that same day, but at the Colombia Solidarity Bridge in Laredo, driving a tractor trailer. Authorities soon discovered anomalies in the cabin during a vehicle scan, according to the charges. The indictment alleges officials recovered 20 bundles of meth, weighing approximately 20.12 kilograms with an estimated value of more than $100,000.

Similarly, a third case alleges Rodriguez entered the United States at the Lincoln-Juarez Port of Entry in Laredo Sept. 28, driving a Toyota Four Runner. There, law enforcement noticed its four tires had anomalies and, upon inspection, found a total of 24 bundles of heroin and meth, weighing approximately 48.82 kilograms and 14.94 kilograms respectively, according to the charges. The drugs are allegedly valued at more than $1.3 million.

According to the indictment against Chavez-Gomez, Nuevo Laredo, Tamaulipas, Mexico, he attempted to drive his SUV through a Laredo checkpoint Oct. 5. Upon arrival, a K-9 alerted to the presence of narcotics, at which time authorities conducted an x-ray scan which revealed a hidden compartment near the rear seats of the vehicle, according to the charges. The compartment allegedly contained 20 bundles of meth that weighed approximately 36.3 kilos with a street value of more than $250,000.

In another separate matter, law enforcement allegedly observed six individuals carrying bundles near the Rio Grande River in Laredo July 18. The charges allege someone was driving a pickup truck towards the river. The driver, believed to be Ojeda, allegedly absconded on foot. The complaint alleges that authorities apprehended him and recovered 480 pounds of marijuana from that truck worth more than $380,000.

The grand jury indicted Vega-Amaral for smuggling ammunition via the Lincoln Juarez Bridge, Sept. 23. Law enforcement conducted an inspection of his vehicle, at which time they allegedly discovered approximately 4,300 rounds of various caliber ammunition. The charges allege it was concealed inside a speaker box and under a spare tire in the trunk of the vehicle.  

Lee, Boston and Perez are charged together with conspiracy to transport illegal aliens. The criminal complaint alleges Lee attempted to drive a commercial truck through a Texas checkpoint west of Bruni. During inspection, a K-9 allegedly alerted to the presence of persons in the cargo area of the truck. An x-ray scan revealed the silhouettes of humans in the rear of the truck, according to the charges. Upon further inspection, authorities allegedly discovered a compartment hidden by a “false wall” with a small door that some utility appliances were blocking. The charges allege they eventually found 24 Mexican citizens in that compartment which had a temperature of 94 degrees. Several of those inside were allegedly sweating profusely and gasping for air. Boston and Perez had allegedly recruited Lee and had driven ahead of him through the checkpoint, acting as a scout vehicle for him.

Finally, Mosley allegedly conspired to transport illegal aliens. On Sept. 27, he  attempted to cross a checkpoint driving his tractor that was towing a refrigerated trailer, according the complaint against him. During inspection, authorities  allegedly noticed that two different temperature settings were displayed. Further inspection revealed he had 42 undocumented aliens inside the trailer, according to the charges.

Salinas, Diaz, Rodriguez, Chavez-Gomez all face up to life in prison if convicted as well as a maximum $10 million fine. Ojeda’s maximum sentence, upon conviction, carries a potential 40 years of imprisonment and a $5 million fine, while the remaining four could serve up to 10 years and pay up to $250,000.

Immigration and Customs Enforcement’s Homeland Security Investigations (ICE) and Customs and Border Protection conducted the investigations of Salinas, Diaz and Rodriguez, while the Drug Enforcement Administration, along with Border Patrol (BP) worked on the Chavez-Gomez and Ojeda matters. ICE also investigated the cases against the remaining four individuals with the assistance  of BP.

Assistant U.S. Attorneys Brandon Scott Bowling, Brian Bajew, Jennifer Day, Paul A. Harrison and Yoona Lim are prosecuting the cases.

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

CORPUS CHRISTI, Texas – A former Coahuila, Mexico, governor is set to appear in federal court to face charges for his role in a money laundering scheme to enrich himself and others through bribery, misappropriation and theft of public funds, announced U.S. Attorney Ryan K. Patrick.

A federal grand jury returned a superseding indictment against Jorge Juan Torres-Lopez, 65, Feb. 8, 2017. He has been in custody in Mexico since Feb. 5, 2019. Today, he was returned to the United States and is set for his initial appearance before U.S. Magistrate Judge B. Janice Ellington in Corpus Christi tomorrow at 2 p.m.

Torres-Lopez is charged in the money laundering scheme that includes offenses against a foreign nation involving bribery of a public official and misappropriation, theft and embezzlement of public funds by or for the benefit of a public official. He is also charged with bank fraud and wire fraud.

The case is related to previous civil litigation in which authorities seized two foreign bank accounts located in Bermuda. Torres-Lopez and Hector Javier Villarreal-Hernandez, his secretary of finance, allegedly opened the accounts in order to secrete stolen monies.

Sun Secured Advantage and N.T. Butterfield and Son Limited held the accounts which had more than $2 million each. As its basis for forfeiture, the government contended the funds were involved in a money laundering transaction, the property constituted or was derived from proceeds traceable to offenses including bribery of a public official or the misappropriation, theft or embezzlement of public funds by or for the benefit of a public official.

Torres-Lopez and Villarreal-Hernandez were the account holders and allegedly transferred stolen Coahuila finances from Mexico into an account in Brownsville. They later transferred the money to the Bermuda accounts, according to court documents. Villarreal-Hernandez, 48, of Saltillo, Coahuilla, Mexico, has been convicted in the Southern and Western Districts of Texas for money laundering offenses and is awaiting sentencing.

The charges allege the Mexican government employed Torres-Lopez from 1994 to 2011. His roles allegedly included work as the general director of Promotion and Development as secretary of Finance for the state of Coahuila, municipal president of Saltillo and interim governor of Coahuila. In approximately December 2005, Villarreal-Hernandez was appointed as undersecretary of Program and Budget for the state of Coahuila. At the time, Torres-Lopez was his supervisor. In July 2008, Villarreal-Hernandez was appointed to the position of secretary of Finance for Coahuila, where he remained until his resignation in August 2011, according to court documents.  

During his time in office, Mexican authorities reportedly began investigating Villarreal-Hernandez. While this commenced, U.S. officials uncovered evidence that in 2008 both Torres-Lopez and Villarreal-Hernandez allegedly opened accounts at J.P. Morgan Chase Bank in Brownsville. The charges allege they used these accounts to move monies to offshore accounts in Bermuda. The two used stolen funds from the Mexican federal government and the state of Coahuila. 

If convicted of money laundering, Torres-Lopez faces up to 20 years in federal prison and a possible $500,000 fine, twice the value of the monetary instrument or funds involved in the transaction or both. Bank fraud and wire fraud carry 30 and 20-year-terms of imprisonment, respectively, as well as up to $1 million and $250,000 in potential fines.

Multiple agencies are conducting the Organized Crime Drug Enforcement Task Force investigation dubbed Operation Politico Junction” to include Drug Enforcement Administration, IRS - Criminal Investigation, Immigration and Customs Enforcement’s Homeland Security Investigations, FBI and U.S. Marshals Service. As part of the investigation, the United States sought the assistance of the Prosecutor General of the Republic of Mexico via the Mutual Legal Assistance Treaty in effect between the United States and Mexico. The Department of Justice’s Office of International Affairs also provided assistance.

Assistant U.S. Attorneys Julie K. Hampton, Jon Muschenheim and Lance A. Watt 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.

BROWNSVILLE, Texas – A federal grand jury has indicted an 18-year-old resident of Harlingen for making threats to damage federal and religious buildings, announced U.S. Attorney Ryan K. Patrick.

Joel Hayden Schrimsher is charged in a six-count indictment, returned today, alleging he made threats through the internet to damage or destroy buildings and conveyed false or misleading information through the internet concerning those threats. He is expected to make his initial appearance before U.S. Magistrate Judge Ronald G. Morgan in Brownsville later this week.

Schrimser is the second young adult facing federal charges in less than a week related to making threats via social media platforms. A Corpus Christi 19-year-old was charged Oct. 24 after he made threats on his Facebook account.

“Parents must talk with their kids about the repercussions of making threats to schools and other public places,” said Patrick. “Law enforcement responses are thorough, time consuming and take finite resources to address.”

The indictment alleges Schrimsher made threats via his Twitter account indicating he intended to mail a bomb to the Federal Reserve, set a Mosque on fire and shoot at a Synagogue.

If convicted of making a threat to damage or destroy a building through the use of an instrument of interstate or foreign commerce, Schrimsher faces up to 10 years in federal prison, while conveying false or misleading information carries up to a five-year-term of federal imprisonment. Both charges could result in a $250,000 maximum possible fine.

The FBI, Cameron County District Attorney’s Office, police departments in Harlingen and Brownsville and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U. S. Attorneys Jody Young and Oscar Ponce 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 34-year-old man has been ordered to federal prison following his conviction of robbing two banks in the Houston area, announced U.S. Attorney Ryan K. Patrick. William Jeffery Ellis pleaded guilty July 29.  

Today, U.S. District Judge Andrew S. Hanen ordered him to prison for 46 months as to each count to run concurrently and to be immediately followed by three years of supervised release.

Authorities identified Ellis as the perpetrator of two robberies – Smart Financial on E FM 1960 in April 2019 and Comerica Bank on W FM 1960 the previous month.

In each of the robberies, an unarmed Ellis demanded money using a threatening note taped to his backpack. The employees complied because they were frightened. 

The FBI and Harris County Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Jennie Basile 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.

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.

HOUSTON – A 25-year-old Houston resident is set to appear in federal court today to answer allegations he robbed a Five Guys restaurant and shot an off-duty law enforcement officer, announced U.S. Attorney Ryan K. Patrick.

Keith Thomas is expected to appear before U.S. Magistrate Judge Bryan at 10:00 am today. He is charged with interference with commerce by robbery and discharging a firearm during or in relation to that robbery. 

The criminal complaint, filed Oct. 25, 2019 alleges Thomas entered the Five Guys restaurant located at 2902 Shepherd Drive in Houston with a firearm Oct. 16. There, Thomas allegedly pointed the firearm at customers and employees and demanded money. The charges allege he was able to steal cash from the cash register and from patrons.

Prior to exiting the restaurant, Thomas allegedly discharged his firearm, striking a constable who was approaching the door. The constable was off official duty with Harris County Precinct 5, but working security at the location. Thomas then fled the location, according to the complaint.

The charges allege officers found a cell phone they believed to belonged to the suspect and traced is back to Thomas. Thomas was arrested and transferred to federal custody.

If convicted, Thomas faces up to 20 years in prison for interference with commerce by robbery and a consecutive mandatory minimum of 10 years up to life in prison for firearm charge.

The Houston Police Department  and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney Jill Stotts is prosecuting the case.

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

CORPUS CHRISTI, Texas – A 19-year-old Corpus Christi resident has been charged with making threats against Grant Middle School, announced U.S. Attorney Ryan K. Patrick.

The criminal complaint was filed today, after which federal authorities took Nathanial Salinas into custody. He is expected to make his initial appearance before U.S. Magistrate Judge Jason B. Libby at 2 p.m. tomorrow.

The charges allege Salinas posted a threatening message on Facebook. On Oct. 9, Facebook user “Natedawg Salinas” allegedly posted a profanity-laden comment indicating he planned to shoot people at the school, specifically mentioning a Spanish teacher. He followed the comment with an abbreviation for “just joking.”

Law enforcement identified that user as Salinas, according to the complaint.

Salinas made the comments in response to another user who indicated problems with the Corpus Christi Independent School District (CCISD).

Following the threat, the charges allege authorities placed Grant Middle School on lockdown, causing fear amongst the students and their families. The Spanish teacher indicated shock and fear for their life, according to the complaint.

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

The FBI, Corpus Christi Independent School District Police Department and the Corpus Christi Police Department conducted the investigation. Assistant U.S. Attorney Brittany L. Jensen is prosecuting the case.   

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

McALLEN, Texas – A 55-year-old McAllen resident has been ordered to federal prison after he admitted to robbing another bank, announced U.S. Attorney Ryan K. Patrick.

Joe Wayne Galipp pleaded guilty Aug. 8, 2019, admitting he robbed the Vantage Bank located on 2nd Street in McAllen.

Today, U.S. District Judge Randy Crane handed Galipp a 60-month sentence to be immediately followed by three years of supervised release. At the hearing, the court heard about a 2004 convenience store robbery and a 2013 bank robbery.  After serving his federal sentence for the bank robbery, he was ordered to be on supervised release, during which time he committed the instant offense. The court revoked the remainder of that term and ordered he serve five months to be served concurrently to the current sentence. In handing down the sentence, the court noted the seriousness of Gallip’s prior criminal history and continued criminal conduct.  

In May 2019, Galipp entered the Vantage Bank, approached a teller and demanded money from the till. The teller ultimately relented after his repeated commands. Galipp then placed the money in a bag he had brought with him and fled on foot.  

Later that same day, law enforcement apprehended Galipp and positively identified him through security camera footage. At that time, he was in possession of the bag containing the money.

In 2013, U.S. District Judge Andrew Hanen sentenced Galipp to a 41-month sentence for the previous bank robbery. Galipp had entered a Bank of America in Harlingen, dressed in a trench coat, hat and sunglasses. He then approached the teller with a handwritten note demanding the money, after which he fled on foot.

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

The McAllen Police Department and FBI conducted the investigation. Assistant U.S. Attorney Laura Garcia prosecuted the case.

HOUSTON – With the plea of a 46-year-old Houston man, 13 people now stand convicted in the healthcare scam involving Continuum Healthcare and its various health centers in the Houston area, announced U.S. Attorney Ryan K. Patrick.

Steven Houseworth admitted to conspiring to pay and receive kickbacks relating to the Medicare program today.

A total of 12 others have been convicted in relation to the scheme. A federal jury convicted Cheryl Waller, 73, of Houston, March 2, 2017, after a three-day trial on one count of conspiracy to pay and receive kickbacks and one count of receiving kickbacks. Those all convicted on the conspiracy count include James Bobino, 50, Ernestine Johnson, 60, Jackie Harris, 56, and Vermon Lacy III, 35, all of Houston; David Edson, 71, Palm Harbor, Florida; Jeffery Parsons, 60, Crockett; Aretha Johnson, 67, Wimberley; Inger Michelle Pace, 57, Missouri City; Ronald Turner, 59, Fresno; Deborah Davis, 56, Atlanta, Georgia; and Mary Browning, 71, Beasley. Edson and Parsons were also convicted of two counts of money laundering. Johnson also pleaded guilty to one count of money laundering, while Pace and Turner each further admitted to paying and receiving kickbacks.

Houseworth, Edson and Parsons were part of the executive team for Continuum Healthcare LLC, which owned Westbury Community Hospital in Houston as well as community mental health centers in the Houston area known by their locations as Hornwood, Baytown and Missouri City.

During his plea today, Houseworth admitted to participating in a kickback scheme to pay co-defendants to bring patients to Continuum. He admitted to causing Medicare to pay $1.5 million based on false and fraudulent claims.

Each location operated a partial hospitalization program (PHP). The PHP was supposed to be a treatment program for individuals with mental illness, intended to closely resemble a highly structured, short-term hospital inpatient program. However, while it was a distinct and organized intensive treatment program, it offered less than 24-hour daily care.

In 2010, Continuum opened Westbury Community Hospital with Hornwood and Baytown becoming outpatient centers, continuing to operate their existing PHPs under the Westbury name. Westbury also opened a PHP.

Houseworth, Edson and Parsons were responsible for the day-to-day operation of Continuum/Westbury and were involved in the implementation of the various kickback programs. Numerous people were referred for treatment in exchange for payment. However, the vast majority did not qualify for PHP services, because they were not experiencing an acute psychotic episode or were actually suffering from mental retardation, dementia or Alzheimer’s.

Aretha Johnson, Pace, Bobino, Waller, Browning and Davis each owned personal care homes in Houston, while Ernestine Johnson, Harris, Lacy and Turner were marketers for Continuum. Each admitted receiving payment to refer the patients, receiving amounts ranging from $130,000 t0 $2.6 million each.

In total, Continuum billed Medicare approximately $189 million in total for fraudulent PHP services and Medicaid paid approximately $66 million on those clams.

U.S. District Judge Gray Miller accepted the plea and has set sentencing for Jan. 23, 2020, at which time Houseworth faces up to five years in prison and a possible $250,000 maximum fine. Housworth was permitted to remain on bond pending that hearing.

The FBI, Department of Health and Human Services - Office of the Inspector General, Texas Attorney General's Medicaid Fraud Control Unit and IRS - Criminal Investigation participated in the joint investigation. Assistant U.S. Attorneys Tina Ansari and Special Assistant U.S. Attorney Justin Blan are prosecuting the case.

McALLEN, Texas – Several Fort Worth area meth runners and their recruiter have been sentenced for their roles in a half-year meth importing conspiracy, announced U.S. Attorney Ryan K. Patrick. The case involved the seizure of seven meth loads with a combined weight of more than 150 kilograms. 

Aren Reyes, 23, Teresa Gonzales, 27, Francisca Baez, 53, and Yesenia Garcia, 27, all of Fort Worth; and Ofelia Hernandez Vasquez, 26, Saginaw, pleaded guilty in late 2017. 

Today, U.S. District Judge Micaela Alvarez handed the main recruiter - Reyes - a 240-month sentence to be immediately followed by three years of supervised release. Also sentenced today were drug mules Gonzales and Garcia, who received respective sentences of 58 and 60 months in federal prison. Vasquez was sentenced to a term of 40 months, while Baez was ordered to serve a 75-month term of imprisonment. Both were drug smugglers in the organization.

In handing down the sentences, the court noted this was not the only load of drugs Gonzalez, Garcia and Vasquez had smuggled and could have changed their minds at any time and not participated in the long drive from Fort Worth. The court also mentioned that even if Baez was unable to stop her son - Reyes - from narcotics trafficking, she could have avoided joining her son in his criminal activities. Prior to assessing the 20-year sentence upon Reyes, Judge Alvarez considered the number of individuals he recruited into the drug trafficking ring and how many he affected with such a serious and destructive drug as meth.

Reyes was the main recruiter of drug mules for this drug trafficking organization and would frequently accompany them to the Rio Grande Valley to coordinate the importation of the drugs into the U.S. She would also travel up to Houston and occasionally, to the state of Georgia. He would escort the mules to make sure they got the drugs successfully past ports of entry and checkpoints.

On April 30, 2017, Vasquez and her brother, Manuel Martinez, 40, Saginaw, Texas, were arrested at the Anzalduas port of entry with approximately 30 kilos of meth in their vehicle. The drugs were stashed in a load of milk and juice containers to try to avoid suspicion. Martinez was sentenced previously to 120 months in for his role in the crime.

The next months, Garcia and Gonzales were arrested at the Progreso port of entry. They attempted to smuggle 11 kilograms of meth into the country in their vehicle - hidden in bags of candy.

Reyes also used his boyfriend, Brandon Morrison, and his mother, Baez, in the scheme. On Aug. 6, 2017, Morrison and Baez pushed a cart loaded with drinks into the Brownsville Port of Entry from Mexico. Upon Investigation, authorities soon discovered 15 kilograms of meth hidden within the coconut water bottles in Morrison’s cart. Morrison previously received a 122-month sentence.

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

Immigration and Customs Enforcement’s Homeland Security Investigations and Customs and Border Protection conducted the investigation. Assistant U.S. Attorney David A. Lindenmuth is prosecuting the cases.

CORPUS CHRISTI, Texas - A 57-year-old convicted felon and Guatemalan national has been sentenced to federal prison for violating the Sex Offender Registration and Notification Act (SORNA) and unlawfully returning to the United States after removal proceedings, announced U.S. Attorney Ryan K. Patrick. 

Today, U.S. District Judge Nelva Gonzales Ramos ordered Jose Paxtor-Chiroy to serve 30 months each for the SORNA and immigration convictions, respectively. The sentences will be served concurrently. At the hearing, the court heard evidence regarding Paxtor-Chiroy’s previous convictions for aggravated sexual assault of a 5-year-old victim and molesting another child victim. After serving those sentences, he was ordered to register as a sex offender for life and ordered removed from the county. The court also noted he had been previously removed in 1992. Not a U.S. citizen, he will again be expected to face removal proceedings.

Law enforcement discovered Paxtor-Chiroy Feb. 27, 2018, walking through a ranch near Sarita attempting to avoid detection. He admitted he had traveled across the Rio Grande River near Hidalgo before being discovered.

Under SORNA, convicted sex offenders must provide registration updates annually or quarterly, depending on the reportable conviction. 

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.

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

CORPUS CHRISTI, Texas – The 47-year-old man who allegedly rammed the Naval Air Station (NAS) has been formally charged with destruction of government property and possession of a stolen firearm, announced U.S. Attorney Ryan K. Patrick.

A federal grand jury has returned the two-count indictment against Brian Dale Robinson, Beeville, today.

A criminal complaint was filed Oct. 7, after Robinson allegedly stole a truck and hit the denial barricade located at the North gate entrance of the NAS in Corpus Christi. The charges allege he was at a gas station in Beeville when he spotted a Dodge Ram 3500 pickup truck with the engine running. Robinson then allegedly entered the vehicle without permission and departed the area.

He approached the NAS and attempted to gain unauthorized access to the base, according to the charges. After he hit the barricade, the vehicle allegedly become inoperable. The charges allege Robinson exited the vehicle and left on foot with a handgun he had found inside and hid next to a dumpster.

Robinson allegedly had suicidal thoughts. However, he opted to drop the weapon so no one else would be hurt.

Following Robinson’s arrest, law enforcement located an HS Produkt, model XDM-9, 9mm pistol loaded with a full magazine.

If convicted of either of the charges, Robinson faces up to 10 years in federal prison and a possible $250,000 maximum fine.

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.    

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

HOUSTON – Attorney General William P. Barr recognized two Southern District of Texas (SDTX) employees for their distinguished public service at the 67th Annual Attorney General’s Awards Ceremony today.

This annual ceremony, held in Washington D.C., recognizes employees and other individuals who have demonstrated exceptional achievements, leadership and service to the Department of Justice and the American people. 

Assistant U.S. Attorneys Sharad Khandelwal and Kate Suh were recognized along with Department of Justice Trial Attorney Saeed Mody for the successful prosecution of Marq Vincent Perez.

On Jan. 28, 2017, Perez burned down a mosque in Victoria.

An investigation revealed Perez had broken into the mosque a week earlier, tried to blow up a car using a homemade bomb, recruited others to “scope out” other mosques and threatened to burn the mosque down if it was rebuilt

The trial commenced for a week and involved testimony from more than 25 witnesses. The federal jury in Victoria returned guilty verdicts July 16, 2018, on all counts as charged. They found Perez responsible for a hate crime in the burning of the mosque, use of fire to commit a felony and for  possessing an unregistered destructive device for an incident that occurred Jan. 15, 2017.

Observing that this case struck at the heart of what it means to be an American because it concerned a core right of religious freedom, the district court sentenced Perez to more than 24 years in prison.                         

“Our greatest strength in our fight for justice is our people – the thousands of men and women who have dedicated their careers, often at great personal sacrifice, to working for justice in America,” said Barr. “As we reflect on the contributions of each of the 357 individuals we honor today, we should hold them up as examples of excellence that continue to inspire our own commitment, and also as reminders of the professionalism and the qualities exhibited throughout the Department.”

This year’s program honored individuals across the department and federal, state, local and tribal partners for their self-less efforts, protecting national security and civil rights, addressing rising violent crime in our communities, going after gangs and those trafficking in dangerous narcotics and human beings.  The awards also honor the work of civil and environmental litigation, which enforces the rule of law and upholds our Constitution. They also recognize employees whose ideas and efforts save taxpayer dollars and help our government operate more effectively and efficiently, among other contributions to public safety and good governance.

HOUSTON – A 54-year-old man who remained in the United States after his Visa had expired has been ordered to prison for receipt and possession of child pornography, announced U.S. Attorney Ryan K. Patrick. Alberto Bernal Garcia resided in Houston and pleaded guilty April 16.

Today, Chief U.S. District Judge Lee H. Rosenthal sentenced Garcia 120 months for the receipt and possession convictions, respectively. The sentences will run concurrently. The court also considered statements detailing the impact to victims of child pornography. In handing down the sentence, Judge Rosenthal recognized receipt and possession of child pornography as a form of child abuse and a sickness or disorder. Garcia was further ordered to pay $76,000 in restitution to known victims and will serve five years on supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. He will also be ordered to register as a sex offender. Not a U.S. citizen, he is expected to face deportation proceedings following the sentence.

On or about May 20, 2018, law enforcement initiated an investigation into child pornography sharing which eventually led them to Garcia’s work address. Authorities executed a search warrant and seized a laptop and external hard drive which Garcia used. A forensic analysis resulted in the discovery of approximately 794 videos and 4,837 images of child pornography including pre-pubescent children, some as young as 3, and bestiality. Garcia collected his child pornography on his personal computer and an external hard drive. 

Garcia came to the United States on a Visa in 1997 from Mexico. He did an array of work until he started helping individuals with viruses on their computers. At the time of his arrest, Garcia owned a computer repair shop within a convenience store.  

Garcia 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—Internet Crimes Against Children Task Force conducted this investigation.

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

LAREDO, Texas – A 24-year-old Laredo man has been ordered to federal prison for his role in transporting 17 undocumented aliens inside a hidden compartment, announced U.S. Attorney Ryan K. Patrick.

Andrew Barron pleaded guilty June 28. 

Today, U.S. District Judge Marina Garcia Marmolejo handed him a 48-month sentence to be immediately followed by three years of supervised release. At the hearing, the court heard additional evidence that described the reckless disregard Barron demonstrated in transporting the aliens in such a manner.

On April 19, Barron approached the Interstate Highway 35 checkpoint driving Chevy truck towing an open-air trailer with a load of mesquite wood. Authorities referred him to secondary inspection, at which time they searched the trailer and found a hidden compartment under the mesquite wood. 

After they unloaded it, they discovered 17 undocumented aliens, including three women and one juvenile male. All were citizens of Mexico.

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

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

LAREDO, Texas – A 26-year old Mexican native from Monterrey, Nuevo Leon, Mexico, has been ordered to federal prison following her conviction for conspiring with intent to distribute more than 40 kilograms of meth, announced U.S. Attorney Ryan K. Patrick. Claudia Janeth Ozuna-Celaya pleaded guilty July 3.

Today, U.S. District Judge Marina Garcia Marmolejo ordered Ozuna-Celaya to serve 87 months of imprisonment. Not a U.S. citizen, she is expected to face removal proceedings following the sentence. During the hearing, the court heard evidence regarding how the meth was hidden inside her car’s tires which required the use of buzz saws and welding torches to extract the bundles. In handing down the sentence, the court noted Ozuna-Celaya brought poison into the United States and made matters worse by including her child in wrongdoing. Judge Marmolejo admonished her in that there was no excuse or justification for her minor son to be with her when she committed this crime.

On March 15, Ozuna-Celaya drove a white Audi with Nuevo Leon license plates into the inspection area of the Border Patrol (BP) checkpoint near Interstate Highway 35 north of Laredo. At the time, her 4-year-old son was present in the vehicle.

During the immigration inspection, a service K-9 alerted to the possibility of concealed narcotics, and authorities immediately referred her to secondary inspection. There, they scanned the vehicle and discovered several abnormalities in the vehicle’s tires. Authorities subsequently searched the tires where they found multiple bundles totaling approximately 49.5 kilograms of meth with a purity of 99%. It is valued at approximately $871,000.

Upon questioning, she claimed to be the owner of the Audi and travelled regularly to San Antonio to go shopping with her cousin. A further investigation confirmed that cousin was not aware she was coming to visit her.

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 Drug Enforcement Administration conducted the investigation with assistance from BP. Assistant U.S. Attorney Francisco J. Rodriguez is prosecuting the case.  

HOUSTON – Four Southern District of Texas (SDTX) school districts and a state agency area among those receiving Department of Justice (DOJ) grants to bolster school security and support first responders. DOJ announced the awards today, totaling more than $85.3 million, designed to educate and train students and faculty as well as support first responders who arrive on the scene of a school shooting or other violent incident.

“Creating a safe learning environment for our children is necessary,” said U.S. Attorney Ryan K. Patrick. “These grants will help local school districts and first responders train and create systems and programs that make our schools safer and better prepared for serious events.”

“These federal resources will help to prevent school violence and give our students the support they need to learn, grow and thrive,” said Attorney General William P. Barr. “By training faculty, students and first responders, and by improving school security measures, we can make schools and their communities safer.”

Among those in the SDTX receiving various grants include the McAllen, Humble, Pasadena and Mission Consolidated Independent School Districts (ISD), Humble ISD Police Department and Texas Department of Public Safety.

President Trump signed the STOP School Violence Act into law in March 2018, authorizing grants designed to improve threat assessments, train students and faculty to provide tips and leads, and prepare law enforcement officers and emergency professionals to respond to school shootings and other violent incidents.

The Office of Justice Program’s (OJP) Bureau of Justice Assistance and DOJ’s Office of Community Oriented Policing Services manage the programs and administer the grants, which include funds to:

• Develop school threat assessment teams and pursue technological solutions to improve reporting of suspicious activity in and around schools;
• Implement or improve school safety measures, including coordination with law enforcement, as well as the use of metal detectors, locks, lighting and other deterrent measures;
• Train law enforcement to help deter student violence against others and themselves;
• Improve notification to first responders through implementation of technology that expedites emergency notifications;
• Develop and operate anonymous reporting systems to encourage safe reporting of potential school threats;
• Train school officials to intervene when mentally ill individuals threaten school safety; and
• Provide training and technical assistance to schools and other awardees in helping implement these programs.

For more details about these individual award programs, as well as listings of individual 2019 awardees, visit https://go.usa.gov/xVJuV.

About the OJP:

‘Principal Deputy Assistant Attorney General Katharine T. Sullivan directs the OJP which provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal justice system. More information about OJP and its components can be found at www.ojp.gov.     

About the Office of Community Oriented Policing Services (COPS):

The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1994, COPS  has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and tribal law enforcement agencies to fund the hiring and redeployment of approximately 130,000 officers and provide a variety of knowledge resource products including publications, training and technical assistance. For additional information about the COPS Office, please visit www.cops.usdoj.gov.

McALLEN, Texas – A former local police officer has been taken into custody for allegedly sexually assaulting two men while in custody, announced U.S. Attorney Ryan K. Patrick.

Matthew Lee Sepulveda, 24, Edinburg, was a former law enforcement officer with the Progreso Police Department, serving from April 17 to July 2 of this year.

The criminal complaint filed under seal yesterday was unsealed today upon his arrest. He is expected to make his initial appearance before U.S. Magistrate Judge Scott Hacker Monday.  

The charges allege Sepulveda violated the civil rights of two individuals while acting under his authority as a uniformed police officer. Specifically, he allegedly performed oral sex on two men while they were in his custody. 

If convicted, Sepulveda faces up to life in federal prison.

The FBI conducted the investigation with the assistance of the Hidalgo County Sheriff’s Office. Assistant U.S. Attorney Sarina S. DiPiazza is prosecuting the case.

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

HOUSTON – A Houston jury has just returned guilty verdicts against a 44-year-old Houston man on five separate counts of sex trafficking involving adults and minors, announced U.S. Attorney Ryan K. Patrick. The jury deliberated for less than three hours before convicting David Mearis following three days of trial.

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

The jury heard Mearis knew what he was doing and that he lived off the backs of these young women and girls. The government described how Mearis exerted constant control over the female victims.

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

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

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

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

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

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

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

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

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

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

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

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

U.S. District Judge Kenneth Hoyt presided over the trial and set sentencing for Jan. 13, 2020. At that time, Mearis faces a minimum of 15 years and up to life in federal prison and a possible $250,000 maximum fine.

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

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

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

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

LAREDO, Texas – A Laredo grand jury has returned a nine-count indictment against a 50-year-old Houston man for a firearms charge in addition to conspiracy and transporting undocumented aliens, announced U.S. Attorney Ryan K. Patrick.

Bernard Jerome Leffyear is set to appear in Laredo federal court before U.S. Magistrate Judge Sam Sheldon at 1 p.m. today. Originally charged by criminal complaint, a grand jury returned the f0rmal indictment Oct. 8.

The charges allege that on Sept. 21, authorities were working their assigned duties at the Border Patrol (BP) checkpoint on Interstate Highway 35, north of Laredo. Leffyear allegedly approached the primary inspection lane, driving a tractor-trailer.

Agents inspected the vehicle, at which time they detected anomalies resembling human bodies inside his trailer, according to the charges.

Court records indicate he was transporting a total of 93 undocumented aliens.  

In addition to discovering the undocumented aliens inside his trailer, authorities also found a black Smith & Wesson pistol. Having a prior felony conviction, he is prohibited by federal of possessing any type of firearm or ammunition.

If convicted of any of the charges, he faces up to 10 years in federal prison and a $250,000 maximum fine.

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

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

HOUSTON – A 33-year-old Brenham resident and ex-employee of Wells Fargo bank has admitted to embezzlement, announced U.S. Attorney Ryan K. Patrick.

Natasha Hudgeons pleaded guilty today. 

From December 2014 through March 2019, she embezzled $63,500 while employed as a teller. Hudgeons admitted she took the money in $500 to $1,000 increments. She concealed the theft by putting falsified entries into the bank’s books and records and “selling” back and forth between the cashbox and coin machine cash lines. Both were considered “single control” cash lines, meaning tellers could conduct transactions on that account line without a second person.

U.S. District Judge Alfred Bennett accepted the plea and set sentencing for Jan.  9, 2020. At that time, Hudgeons faces up to 30 years in federal prison and a possible $1 million maximum fine.

She was permitted to remain on bond pending that hearing.

The FBI conducted the investigation. Assistant U.S. Attorney Belinda Beek is prosecuting the case.

VICTORIA, Texas – A 48-year-old Mexican national who resided in McAllen and Houston is now a fugitive from justice, announced U.S. Attorney Ryan K. Patrick.

Humberto Ramirez-Santos was set to appear in Victoria federal court Oct. 2 to receive his sentence for a conspiracy to transport illegal aliens. He did not show. Today, a federal grand jury indicted him on another charge of failure to appear and a warrant remains outstanding for his arrest. Anyone with information about his whereabouts is asked to contact the U.S. Marshals Service at 361-220-1800.

Ramirez-Santos pleaded guilty July 8 to his involvement in a conspiracy to transport illegal aliens between October 2011 to July 2017. The alien smuggling organization facilitated the smuggling of illegal aliens from multiple countries including individuals from China, Russia, India, Brazil, Honduras, El Salvador, Guatemala and Mexico. Ages of those smuggled into the country ranged from toddlers to the elderly but were mostly comprised of young adults. 

At the time of his plea, the court heard that smuggling trips were taken every week and the total number of aliens transported are incalculable.

The organization used various methods to facilitate the smuggling. Co-conspirators drove cars and trucks to locations south of Border Patrol (BP) checkpoints. There, they were guided through South Texas ranches to avoid detection. They also used Penske trucks and tractor trailers to smuggle illegal aliens through various checkpoints.  

A particular tactic was to select a tractor trailer parked at a South Texas truck stop with a suitable temperature. They would then remove the seal and load the illegal aliens. Members of the organization would follow the vehicle to the next stop somewhere north of the checkpoint to later retrieve them. The drivers would be unaware of their human cargo and were potentially exposed to criminal liability. The aliens were then be transported in closed Penske trucks to Houston.

Ramirez-Santos provided aliens to be smuggled through his contacts in Mexico. He also trained the young members of the organization in how to do counter-surveillance and instructed younger family  members in how to move aliens.

Immigration and Customs Enforcement’s Homeland Security Investigations, Border Patrol and Houston Police Department conducted the investigation. Assistant U.S. Attorney Patti Hubert Booth is prosecuting the case.

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

BROWNSVILLE, Texas – A 40-year-old Harlingen resident has been ordered to federal prison following his conviction of lying on a firearm application at a local Wal-Mart, announced U.S. Attorney Ryan K. Patrick along with Special Agent in Charge Fred Milanowski of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). A Brownsville jury deliberated for 30 minutes before convicting Juan Sauceda following a one-day trial June 18, 2019.

Today, U.S. District Judge Rolando Olvera handed Sauceda an 18-month sentence to be immediately followed by two years of supervised release. At the hearing, the defense argued for probation as there was “no harm, no foul.” The court denied that request and imposed the federal prison term.

On Sept. 6, 2018, Sauceda attempted to purchase a 12-gauge pump shotgun at a Wal-Mart in Harlingen. As a part of the purchase, he was required to fill out ATF Form 4473 in order to complete a background check. He signed the form, attesting that he never had a felony conviction. However, the investigation revealed he had a conviction for two counts of assault and battery with a deadly weapon. Sauceda had stabbed two individuals in 2013 in a dispute in Custer County, Oklahoma.

The defense attempted to convince the jury Sauceda was too uneducated to understand the form when he made the false statement as to his criminal history. The jury was not persuaded and found him guilty as charged. 

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

ATF conducted the investigation. Assistant U.S. Attorney Justin Schorr Dinsdale and Israel Cano III prosecuted the case.

BROWNSVILLE, Texas – A 68-year-old Brownsville man has been ordered to prison following his convictions of distributing and possessing child pornography, announced U.S. Attorney Ryan Patrick. Arnoldo Villagomez  pleaded guilty Jan. 4, 2018.

Today, U.S. District Judge Rolando Olvera Jr. sentenced Villagomez to 120 months for the distribution and possession convictions, respectively. The sentences will run concurrently for a total 10-year term of imprisonment. Villagomez was further ordered to pay $263,952.83 in restitution to the known victims and will serve 10 years on supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. He will also be ordered to register as a sex offender.

In July 2016, authorities learned an as-yet-unidentified individual in Brownsville was involved in distributing child pornography via the internet. The investigation led them to an address in Brownsville where Villagomez resided.

Law enforcement executed a search warrant Nov. 9, 2016, and seized a computer and other digital devices belonging to Villagomez. Forensic analysis later revealed more than 5,000 images and 145 videos of child pornography.

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

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

McALLEN, Texas – A 44-year-old McAllen woman has been charged with conspiring to pay illegal kickbacks to physicians and marketers in exchange for the referral of Medicare and Medicaid beneficiaries, announced U.S. Attorney Ryan K. Patrick.

A federal grand jury returned the indictment, under seal, against Claudia Haro Oct. 9, which was unsealed as authorities arrested her today. She is expected to make her initial appearance tomorrow morning before U.S. Magistrate Judge J. Scott Hacker.   

The indictment charges Haro with engaging in a conspiracy from 2011 through 2016. Haro and her co-conspirators allegedly paid kickbacks to physicians and various other individuals in exchange for beneficiary referral and certification and for services and supplies billed to Medicare and Medicaid. According to the indictment, Haro delivered cash payments in return for the referral of beneficiaries to a home health agency and other providers with whom Haro was associated.

Haro is also charged with one count of making false statements to federal agents.   

If convicted of any of the charges, she faces up to five years in prison.

The FBI, Department of Health and Human Services‐Office of Inspector General, Texas Attorney General’s Medicaid Fraud Control Unit and Texas Health and Human Services Commission conducted the investigation. Assistant U.S. Attorneys Andrew Swartz and Cynthia Villanueva 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 34-year-old Mexican man has been ordered to federal prison sentence following his conviction of conspiracy to import large amounts of cocaine and marijuana, announced U.S. Attorney Ryan K. Patrick.

Luis Ivan Nino-Duenez, El Control, Tamaulipas, Mexico, pleaded guilty June 3, 2014.  

Today, Senior U.S. District Judge Hilda G. Tagle sentenced Nino-Duenes to a total of 20 years in federal prison.

During the hearing, the court heard evidence to support possible increases in the calculated sentencing guideline range. Nino-Duenes utilized automatic weapons, grenades, homemade cannons and body armor to provided security during the purchase, transportation and distribution of narcotics. He also commanded, directed and engaged in violent confrontations with other criminal syndicates to maintain control of the plazas in Mexico. He further received enhancements for importation of meth into the United States, maintaining premises for the purpose of manufacturing or distributing a controlled substance and because he committed the offense as part of a pattern of criminal conduct. Finally, the court also found Nino-Duenes was a leader/organizer of an extensive criminal enterprise involving five or more participants.

Nino-Duenes served as a comandante for Jose Luiz Zuniga-Hernandez aka Wicho or XW who served as a gulf cartel plaza boss in El Control for a large period of time between 2008 through 2011.

On Nov. 6, 2010, Zuniga-Hernandez assumed control of the Matamoros Plaza upon the death of Antonio Ezequiel Cardenas-Guillen. On March 28, 2011, Rafael Cardenas-Vela came to Matamoros to take over the plaza management duties and Zuniga-Hernandez returned to El Control.

Cartel Del Golfo (CDG) transnational criminal organization plaza bosses are appointed to specific regions to help coordinate the importation and distribution of multi-ton shipments of cocaine, marijuana and other illicit narcotics within Mexico and into the United States. They are the lead representatives for the CDG in a particular region or town, responsible for maintaining control of the region and ensuring the safe passage of narcotics. The plaza boss also extracts a "piso," or payment, from others who want to transport narcotics for importation into the United States or operate businesses in that region. 

Additional evidence presented today indicated Zuniga-Hernandez and the CDG smuggled more than one ton of cocaine through the Matamoros/El Control plaza areas and more than 3000 kilograms of marijuana into the United States per month. The CDG used planes and clandestine air strips to fly the cocaine into Mexico for later importation and distribution within the United States.

Zuniga-Hernandez had under his command approximately 120 lookouts and 60 estacas. An estaca is a vehicle occupied by three or four armed individuals. Thus, 60 estacas would be anywhere from 180 to 240 armed individuals patrolling the plaza. Nino-Dunez was the commander of Zuniga-Hernandez’s estacas.

On Oct. 27, 2011, Zuniga-Hernandez and Nino-Duenes along with Hernandez and Rincon-Rincon fled into the United States after a gun battle in Mexico involving a power struggle between the CDG plazas.

All were found hiding near the Rio Grande River. Upon their arrest, agents found a gold, diamond and ruby encrusted gun, more than $39,000 and several cell phones. Evidence on those phones showed discussions with "Apa" about the gun battle and what to do in response. "Apa" was identified as Jorge Eduardo Costilla-Sanchez, the head of the CDG.

Zuniga-Hernandez, Hernandez and Rincon-Rincon were previously sentenced to 50 years, 35 years and life imprisonment, respectively.

Nino-Duenes 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, Drug Enforcement Administration and Cameron County Sheriff’s Office conducted the Organized Crime Drug Enforcement Task Force investigation. Assistant U.S. Attorneys Angel Castro and Jody Young are prosecuting the case.

HOUSTON – A 70-year-old Brownsville attorney has been ordered to federal prison following his conviction of failing to file a financial reporting form as required when operating a trade or business, announced U.S. Attorney Ryan K. Patrick. Guillermo Vega Jr. pleaded guilty May 23, 2018.

Today, U.S. District Judge Andrew S. Hanen ordered Vega to serve a total of 13 months in prison immediately followed by three years of supervised release. The court also imposed a $100,000 fine and restitution payable to the IRS for unpaid taxes Vega earned as part of his legal practice. At the hearing, the court heard additional evidence regarding Vega’s attempt to obstruct justice by tampering with a witness. In handing down the sentence, the court found Vega abused the public trust because of his special skill as an attorney. Judge Hanen also noted other government and legal forms he filed in the course of his representation of criminal defendants.

At the time of the plea, the court heard that on March 21, 2011, Vega received $25,000 in cash related to a single sale while operating as a trade or business, namely the Law Office of Guillermo Vega Jr.

The money was intended for the representation of Heriberto Bazan on federal charges of attempting to transport ammunition into Mexico. Vega did not file the appropriate FinCEN Form in relation to the transaction. A FinCEN Form 8300 is a reporting requirement when a trade or business receives cash in excess of $10,000.

As part of the plea agreement, Vega agreed that he will make full restitution on the tax loss, totaling $126,253.

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

IRS-Criminal Investigation and Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorneys Jody Young and Karen Betancourt are prosecuting the case.

BROWNSVILLE, Texas – A 43-year old U.S. citizen has been ordered to federal prison following his admission that he possessed child pornography, announced U.S. Attorney Ryan K. Patrick. Donavan Lyle Herrera pleaded guilty Feb. 6, 2019. 

Today, U.S. District Judge Rolando Olvera Jr. sentenced Herrera to 121 months of federal imprisonment. He will also serve 10 years on supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. Herrera will also be ordered to register as a sex offender. A hearing will be held at a later date to determine restitution.

On or about Oct. 19, 2018, law enforcement initiated an investigation of child pornography sharing which led them to Herrera’s address in Brownsville. On Nov. 15, 2018, authorities executed a search warrant at Herrera’s home at which time they seized a computer and other digital devices. A forensic analysis resulted in the discovery of approximately 41 images and 81 videos of child pornography.

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

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

Assistant U.S. Attorney Ana C. Cano 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."

CORPUS CHRISTI, Texas - A 39-year-old Corpus Christi resident and Texas Syndicate member has been ordered to federal prison for trafficking cocaine and possessing a firearm, announced U.S. Attorney Ryan K. Patrick. John Mendez aka John Manuel Mendez pleaded guilty May 31.

Today, U.S. District Judge Nelva Gonzales Ramos handed Mendez an 18-month sentence for the drug charges. He also received an additional 60 months for the firearms offense which must be served consecutively for a total sentence of 78 months in federal prison. The sentence will be immediately followed by five years of supervised release. In handing down the sentence, the court noted the defendant’s extensive criminal history.

From approximately May 1 - Aug. 25, 2018, Mendez was involved in a cocaine conspiracy. On June 25, 2018, local law enforcement conducted a routine traffic stop which resulted in the discovery of cocaine and marijuana. They also found two firearms - a .40 caliber rifle in the vehicle’s front seat and a .357 caliber handgun found on the ground near the vehicle.

He was released on bond, during which time another traffic stop led to the discovery that Mendez possessed additional cocaine for distribution. Social media evidence also demonstrated extensive drug trafficking and firearms activity.

Mendez 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 conducted the investigation. Assistant U.S. Attorney Reid Manning is prosecuting the case.

CORPUS CHRISTI, Texas – A 19-year-old Beeville resident has been ordered to federal prison following his conviction of possession with intent to distribute meth, announced U.S. Attorney Ryan K. Patrick.

Margarito Keller pleaded guilty May 30.

Today, U.S. District Judge Nelva Gonzales Ramos sentenced Keller to 120 months in federal prison to be immediately followed by five years of supervised release. At the hearing, the court heard additional testimony that Keller has been involved with using, possessing and distributing drugs since he was 14. In handing down the sentence, the court noted Keller’s age, but that the law demanded the sentence imposed.  

On Nov. 15, 2018, authorities took Keller into custody for distributing a controlled substance. During that arrest, law enforcement officers observed a portable safe next to Keller in his vehicle.

Upon inspection, they recovered several baggies containing a total of approximately 55 grams of meth, most of which was considered “pure.” They also recovered a loaded Taurus .38 caliber pistol and a digital scale.

Keller admitted the meth, weapon and scale all belonged to him. 

The Drug Enforcement Administration conducted the investigation in conjunction with the Beeville Police Department. Assistant U.S. Attorney Vincent Tang prosecuted the case.

HOUSTON - Two Houston area nurses are set to appear in federal court on charges they defrauded Medicare of more than $2.1 million, announced U.S. Attorney Ryan Patrick.

The indictment, returned under seal Oct. 9, was unsealed today upon the arrests of Joseph Nwankwo, 56, Houston, and Stacey Ajaja, 49, Richmond. They are expected to make their initial appearance at 2 p.m. before U.S. Magistrate Judge Nancy K. Johnson today.

According to the indictment, Nwankwo and Ajaja co-owned Hefty Healthcare Services Inc. From 2014 through 2016, Hefty allegedly billed Medicare for home health services that were never provided and not medically necessary. Nwankwo and Ajaja obtained patient referrals by paying marketers and patients and bribed physicians to authorize medically unnecessary home health services for Hefty patients, according to the charges. The indictment also alleges they created phony medical records to perpetrate the healthcare fraud.

Nwankwo and Ajaja are both charged with one count of conspiracy to commit health care fraud, five counts of health care fraud and one count of conspiracy to pay and receive health care kickbacks.   

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

The Department of Health and Human Services‐Office of Inspector General, Texas Attorney General’s Medicaid Fraud Control Unit and the FBI conducted the investigation. Special Assistant U.S. Attorney Kathryn Olson is prosecuting the case.

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

CORPUS CHRISTI, Texas – A 47-year-old Beeville man has been charged with possession of a stolen firearm, announced U.S. Attorney Ryan K. Patrick

Brian Dale Robinson is set to appear before U.S. Magistrate Judge Jason Libby at 9:00 a.m. today for a preliminary and detention hearing.

A criminal complaint was filed Oct. 7, after Robinson allegedly stole a truck and hit the denial barricade located at the North gate entrance of the Naval Air Station (NAS) in Corpus Christi. The charges allege that he was at a gas station in Beeville when he spotted a Dodge Ram 3500 pickup truck with the engine running. Robinson then allegedly entered the vehicle without permission and departed the area.

He approached the NAS and attempted to gain unauthorized access to the base, according to the charges. After he hit the barricade, the vehicle allegedly become inoperable. The charges allege Robinson exited the vehicle and left on foot with a handgun he had found inside and hid next to a dumpster.

Robinson allegedly had suicidal thoughts. However, he opted to drop the weapon so no one else would be hurt.

Following Robinson’s arrest, law enforcement located an HS Produkt, model XDM-9, 9mm pistol loaded with a full magazine.

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.

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

CORPUS CHRISTI, Texas – A 25-year-old resident of Alamo has been sentenced in Corpus Christi federal court for transporting illegal aliens within the country, announced U.S. Attorney Ryan K. Patrick.

Jose Angel Herrera pleaded guilty July 10.

Today, U.S. District Judge David S. Morales ordered him to prison for 45 months to be immediately followed by three years of supervised release. In handing down the sentence, the court noted Herrera’s criminal history and the needless and substantial risk to human life his actions caused.

On May 21, Herrera approached the primary inspection lane of the Border Patrol (BP) checkpoint near Sarita driving a Chevrolet Silverado and pulling a cargo trailer. During routine inspection, Herrera appeared nervous and would not make eye contact with authorities. 

A K-9 also alerted to the trailer, indicating  the possible presence of humans and /or narcotics.

In secondary inspection, law enforcement located a total of 28 undocumented aliens inside the cargo trailer, one of whom was an unaccompanied minor.

At the time of his plea, Herrera admitted that he knowingly transported the aliens in the trailer.

Immigration and Customs Enforcement’s Homeland Security Investigations and BP conducted the investigation.  Assistant U.S. Attorney Joel Dunn prosecuted the case.

LAREDO, Texas – A federal jury has convicted a 74-year-old local felon for unlawfully possessing a firearm, announced U.S. Attorney Ryan Patrick. They deliberated for one hour before returning the guilty verdict against Javier J. Trevino following a one-day trial. 

During the trial, the jury heard testimony about an Aug. 10, 2016, search warrant authorities executed on Trevino’s residence. Upon entering the home, law enforcement observed multiple firearms in the living room, dining room, kitchen and bedrooms. Authorities ultimately discovered more than 120 firearms and a significant amount of ammunition within Trevino’s residence.

Trevino had a felony conviction for making false statements in relation to the purchase of firearms from 1987 and was, therefore, prohibited from possessing a firearm or ammunition per federal law.

At trial, the defense attempted to convince the jury Trevino owns multiple homes and did not reside in the home where authorities seized the firearms. He argued that because he resided somewhere else, he was not in possession of those firearms. The jury did not believe those claims and found Trevino guilty as charged. 

U.S. District Judge Marina Garcia Marmolejo presided over the trial and set sentencing for Feb. 24, 2020. At that time, Trevino 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 Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation with the assistance of the Webb County Sheriff’s Office and Laredo Police Department. Assistant U.S. Attorneys Christopher dos Santos and Anthony Brown prosecuted the case.

HOUSTON – A jury has returned a guilty verdict against a 57-year-old Nigerian man for committing passport fraud, announced U.S. Attorney Ryan K. Patrick. The jury deliberated for one hour before convicting Ademola Okulaja, Kingwood, following a two-day trial.

On June 6, 2016, Okulaja opened a checking account at a Houston branch of the International Bank of Commerce (IBC). At that time, he claimed to be a British citizen known as “Michael Millet” and provided the bank with a fraudulent passport the United Kingdon purportedly issued. 

Okulaja entered a different IBC Branch in Houston on Nov. 21, 2016, and opened another checking account. This time, he used the name “David Allen” and presented another fraudulent British passport.

The defense conceded the passports were counterfeit, but attempted to convince the jury Okulaja was not the person presenting those passports to open the accounts. The jury was not convinced and found him guilty as charged.

U.S. District Judge Gray Miller presided over the trial and set sentencing for Jan. 23, 2020. At that time, Okulaja faces up to 10 years in federal prison and a possible $250,000 fine. He was permitted to remain on bond pending that hearing. 

The U.S. Postal Inspection Service conducted the investigation. Special Assistant U.S. Attorney Benjamin C. Sandel and Assistant U.S. Attorney Jay Hileman prosecuted the case.

McALLEN, Texas – A 56-year-old McAllen man has been arrested and charged with conspiracy to commit honest services wire fraud, announced U.S. Attorney Ryan K. Patrick.

Authorities arrested Sunil Wadhwani this morning upon the filing of a criminal complaint yesterday. He is set to appear before U.S. Magistrate Judge Juan Alanis at 11:00 a.m. today.  

Beginning in at least April 2013, Wadhwani allegedly conspired with others to obtain a development agreement with favorable terms containing $300,000 in incentive agreements from the City of Weslaco Economic Development Corporation. 

According to the criminal complaint, Wadhwani and Person A met with and engaged in e-mail communications with Person B and Person C in order devise a scheme to funnel thousands of dollars in funds to Person B, Person C and Commissioner A, who was a sitting Weslaco city commissioner and Economic Development Corporation Board member. According to the charges, the bribes were paid in order to ensure the commissioner’s votes before the Economic Development Corporation and the City Commission in obtaining the development agreement and its favorable terms.

In order to conceal the nature and source of the bribe payments, Wadhwani and others allegedly drafted and circulated a fictitious consulting agreement between a business entity he owned and another that Person C owned. According to the complaint, Wadhwani and the city commissioner visited a former Weslaco Economic Development Corporation executive director regarding the incentive agreement. That director allegedly felt pressured.

The charges further allege Person B and that city commissioner helped push the requests through the Weslaco Economic Development Corporation. It eventually granted a $300,000 incentive agreement the City of Weslaco approved to be paid in two equal $150,000 installments, according to the charges.   

The final installment was allegedly deposited into a bank account for which Wadhwani  was an authorized signer Nov. 3, 2014.

The FBI conducted the investigation. Assistant U.S. Attorney Roberto Lopez is prosecuting the case.

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

CORPUS CHRISTI, Texas - The 67-year-old founder and part-owner of Global Blue Technologies has been convicted of sex trafficking of a minor female, announced U.S. Attorney Ryan K. Patrick.

The jury deliberated for 10 hours before convicting David Wills, now of San Antonio and previously of Rockport and South Padre Island, following a 10-day trial.

The jury heard that from 2012 to 2015, the aquaculture company owner conspired with Maria Losoya and trafficked a young girl beginning when she was only 10 years of age. Losoya and Wills used their cell phones to arrange meetings at several different locations where Wills would sexually assault the victim. These included multiple Wills’ residences as well as Losoya’s in Brownsville and hotels and motels in the greater Corpus Christi area. 

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

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

Losoya pleaded guilty in 2017 and testified at trial.

The jury also heard from the forensic interviewer who first interviewed the victim about the sexual assaults, the nurse who first examined her, several state and federal law enforcement officers and an expert witness who testified about Wills' and Losoya's cell site information. An eyewitness also described seeing the victim at a Portland hotel where Wills and Losoya met in March 2014.

In addition, the jury heard from Wills’ former personal assistant who testified he asked her to hand over a personal computer on the day of the victim’s outcry. He later admitted it was destroyed to prevent law enforcement from seizing and reviewing it.

Wills, who had a total of 12 attorneys representing him at trial, attempted to

convince the jury Losoya only wanted more money and tried to refute cell site location data as well as the nurse’s testimony. They also criticized the victim’s previous statements. Wills took the stand and admitted having an affair with Losoya but denied any sexual involvement with the victim.

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

The jury ultimately returned guilty verdicts on one count of conspiracy to commit sex trafficking, seven counts each of sex trafficking and coercion/enticement, one count of attempted coercion/enticement and one count of conspiracy to obstruct justice.

He faces up life in prison. 

U.S. District Judge Nelva Gonzales Ramos presided over the trial. Previously released on bond, Wills was taken into custody following the verdict today where he will remain pending sentencing, which will be set at a later date.

Immigration and Customs Enforcement’s Homeland Security Investigations, Brownsville Police Department and Texas Rangers conducted the investigation with the assisatnce of the FBI. Assistant U.S. Attorneys Zahra Fenelon, Rick Bennett and Stephanie Bauman are prosecuting the case.

A federal jury in Texas found a physician who was the owner and operator of a medical clinic in Houston, Texas, guilty today of participating in a $16 million Medicare fraud scheme in which she signed false and fraudulent “plans of care” and other medical documents for purported home health services.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ryan Patrick of the Southern District of Texas, Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office and Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services Office of the Inspector General’s (HHS-OIG) Dallas Regional Office made the announcement.

Following a six-day trial, Yolanda Hamilton, M.D., 56, of Harris County, Texas, the owner and operator of HMS Health and Wellness Center, PLLC, was convicted of one count of conspiracy to commit health care fraud, one count of conspiracy to solicit and receive health care kickbacks and two counts of false statements relating to health care matters.  Hamilton is expected to be sentenced before U.S. District Judge Keith P. Ellison of the Southern District of Texas, who presided over the trial.  A sentencing date has not yet been set.

According to the evidence presented at trial, from January 2012 to August 2016, Hamilton and others conspired to defraud Medicare by signing false and fraudulent plans of care and other medical documents, and submitting fraudulent claims to Medicare to make it falsely appear that the patients of Hamilton and her co-conspirators qualified and received home-health services under Medicare.  In fact, Hamilton and her co-conspirators paid the patients to sign-up and recertify for home health services when those services were often not medically necessary, not provided or both.  The evidence also showed that Hamilton charged home health agencies an illegal kickback in the form of a patient “fee” for certifying and recertifying patients for home-health services that the home health agencies, not the patients, would pay.  The scheme resulted in approximately $16 million in false and fraudulent claims for home-health services to Medicare, the evidence showed. 

To date, several others have pleaded guilty or been found guilty at trial based on their roles in a larger fraudulent scheme that included Hamilton.  Several others who purchased plans of care and other signed medical documents from Hamilton have been charged, found guilty or pleaded guilty to conspiracy to commit health care fraud and/or pay or receive kickbacks. 

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

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

The Fraud Section leads the Medicare Fraud Strike Force.  Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for almost $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.

McALLEN, Texas –A former Weslaco city commissioner and economic development corporation board member has admitted he lied under oath, announced U.S. Attorney Ryan Patrick.

David Fox, 50, Weslaco, pleaded guilty today.

During a grand jury proceeding Nov. 20, 2018, Assistant U.S. Attorney (AUSA) Roberto Lopez Jr. asked Fox if he had received any money or any benefit from any individual or entity in connection with casting a vote as a member of the Weslaco City Commission. He responded “no.”

Later, he admitted he had received at least $2,000 in bribes. He believed the money was intended to influence his votes as a commissioner relating to the Weslaco water and wastewater treatment plants and facilities. 

Fox served in this role from approximately December 2012 through November 2015. During portions of this time, Fox also served as a board member for the Weslaco Economic Development Corporation.

U.S. District Judge Micaela Alvarez accepted the plea today and set sentencing for Jan. 9, 2020, at which time Fox faces up to five years in federal prison and a possible $250,000 fine. 

He was permitted to remain on bond pending that hearing.

The FBI and IRS – Criminal Investigation conducted the investigation. AUSA Lopez is prosecuting the case. 

LAREDO, Texas – A 35-year-old resident of Laredo has entered a guilty plea to conspiring to transport aliens, announced U.S. Attorney Ryan K. Patrick.

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

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

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

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

U.S. District Judge Marina Garcia-Marmolejo will impose sentencing Jan. 27, 2020. At that time, Meredith faces up to 10 years in federal prison and a possible $250,000 fine.

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

HOUSTON – Two people have been charged with aiding and abetting each another in the evasion of $3.5 million in diverted corporate income, announced U.S. Attorney Ryan K. Patrick along with acting IRS – Criminal Investigation (CI) Special Agent in Charge Ramsey Covington.  

Asim Lodhi and wife Naila Lodhi are expected to make their initial appearances before U.S. Magistrate Judge Christina Bryan today.

The indictment, returned Sept. 10, alleges the Lodhis owned and operated U. S. Loss Prevention Inc. and Vanguard Detective & Security Agency, Inc. The company provided contract security services for commercial clients in the Houston and Dallas/Fort Worth metropolitan areas. The indictment alleges from during 2008 through 2011, the couple diverted and cashed approximately $3.5 million in client fee checks through two local check cashing services. The checks should have been deposited directly into the corporate bank accounts and disclosed to their accountants as taxable sales, according to the charges.

When necessary, Asim and Naila Lodhi allegedly later deposited approximately $2.5 million in proceeds of the check cashing activity into their personal and corporate accounts to pay corporate and living expenses. However, they described these delayed cash deposits to their accountants as non-taxable loans from friends rather than taxable sales according to the indictment. . 

The charges allege that when their corporate and personal tax returns came under investigation in 2013, the Lodhis hired new accountants. These people then allegedly proposed amendments that would have converted the “loan deposits” made to the corporate accounts into taxable sales, profits and dividends. However, the defendants did not reveal approximately $1 million in diverted cash that was not deposited to any account and remained a secret, according to the charges.

The indictment further alleges the deception continued into 2014 when they made misleading statements to the IRS.

If convicted, Asim and Naila Lodhi face a maximum of five years in federal prison on each count as well as a possible $250,000 maximum fine.

IRS-CI conducted the investigation. Assistant U.S. Attorney Jimmy Sledge Jr. is prosecuting the case.

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

LAREDO, Texas – A 49-year-old man from Gaithersburg, Maryland, has admitted he conspired to illegally transport more than 30 undocumented aliens for financial gain, announced U.S. Attorney Ryan K. Patrick.

Ernest Michael Carter pleaded guilty in federal court today.

On June 3, Carter arrived at the Border Patrol (BP) checkpoint on Interstate Highway 35, north of Laredo. He was driving a tractor trailer with Oklahoma plates. Soon after, a K-9 alerted to the presence of narcotics or hidden persons inside the trailer.

Authorities sent him to secondary inspection, at which time they discovered 36 undocumented aliens inside the trailer, more than $45,000 in cash and $4,000 in money orders. Two of them were minors, according to records.

Court documents also indicate that Carter had purchased a vehicle for $10,000 cash in Laredo two days prior. He was unemployed at the time.

Carter has been and will remain in custody pending his sentencing hearing, which will be set for a later date before U.S. District Judge Diana Saldana. At that time, Carter faces up to 10 years in prison as well as a possible $250,000 fine.  

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

LAREDO, Texas – A 32-year-old Mexican national has admitted he conspired to import over 50 kilograms of meth into the United States, announced U.S. Attorney Ryan K. Patrick.

Jose Ramos-Delgadillo pleaded guilty in federal court today to two counts – conspiracy to import and importation of meth.

On Aug. 4, 2019, he arrived in Laredo at the Juarez-Lincoln International Bridge driving a Ford Escape. An initial search yielded 24 bundles of meth concealed within the tires. However, authorities also discovered an additional 19 bundles in the vehicle’s firewall.

Upon questioning, Ramos-Delgadillo claimed he was a wrestler from Guadalajara, Mexico, who was traveling to Dallas to visit a friend.

He soon admitted he knew there were narcotics in the vehicle. He expected to be paid $5,000 for transporting the drugs.

The drugs weighed a total of 53.56 kilograms with an approximate value of more than $300,000.

He has been and will remain in custody pending his sentencing, which will be set at a later date before U.S. District Judge Diana Saldana. At that time, Ramos-Delgadillo faces a minimum of 10 years and up to life in prison as well as a possible $10 million fine.  

He has been and will remain in custody 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 Jennifer Day is prosecuting the case.

BROWNSVILLE, Texas – A Brownsville man and a couple living in Los Fresnos have been ordered to prison for a total of nearly 50 years for their role in transporting meth from Brownsville to Louisiana, announced U. S. Attorney Ryan K. Patrick. Jesus Hector Garza Jr., 31, Gelacio Flores-Flores, 33, and Mayra Danira Rodriguez, 40, pleaded guilty in 2018.

Today, U.S. District Judge Fernando Rodriguez Jr. sentenced Flores-Flores, a Mexican citizen living in Los Fresnos to 200 months in federal prison, while his wife - Rodriguez – received 157 months. Not a U.S. citizen, Flores-Flores is expected to face deportation proceedings following his sentence.

Judge Rodriguez previously sentenced Garza Jr., of Brownsville, to 240 months in federal prison.

In handing down the sentences, Judge Rodriguez noted the serious nature of the meth trafficking. He also recognized Flores and Rodriguez’s role in providing the drugs from Mexico to Garza who sold it to his buyers in Louisiana for profit. The court also ordered a $100,000 money judgment against Garza and a $30,000 money judgement for Flores as forfeiture of the proceeds they earned from illegally selling the methamphetamine.

In 2016, Garza bought approximately two kilograms of “ice” from Flores and enlisted Rodriguez to find a drug “mule” to get the meth load to Louisiana. Rodriguez recruited a young female from Brownsville to carry the drugs. Law enforcement intercepted the woman carrying the methamphetamine at a motel in Houston after bad weather kept the drug load from being carried all the way to Louisiana.

The investigation revealed Garza had purchased meth from Flores and Rodriguez numerous times. Flores and Rodriguez had a source of supply in Mexico for the drugs. Garza also sold crack cocaine locally in Brownsville and had shipped powdered cocaine to customers throughout the Southeastern United States.

All three have been and will remain in custody awaiting their transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

The Drug Enforcement Administration and FBI conducted the joint Organized Crime Drug Enforcement Task Force Investigation. Assistant U.S. Attorney Karen Betancourt prosecuted the case. 

BROWNSVILLE, Texas – A 34-year-old Mexican citizen has been ordered to federal prison following his conviction of possessing child pornography, announced U.S. Attorney Ryan K. Patrick.

Gustavo Eduardo Diaz-Vasquez pleaded guilty Oct. 2, 2018.

Today, U.S. District Judge Fernando Rodriguez Jr. ordered him to serve 72 months in federal prison. Diaz-Vasquez was further ordered to pay $9,000 in restitution to six known victims and will serve 10 years of 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. At the hearing, the court read excerpts of several victim impact statements detailing how this is clearly not a victimless crime.

On or about Feb. 10, 2018, Diaz-Vasquez was attempting to enter the United States through the Veteran’s Port of Entry in Brownsville when authorities conducted a search of his cell phone. At that time, they discovered Diaz-Vasquez was in possession of child pornography on his cell phone.

A forensic analysis later revealed approximately 142 images and 346 videos of child pornography.

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

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

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