Southern District of Texas

A retired Kansas native, who was residing in Panama, was sentenced today to 210 months in prison, for use of sexually explicit depictions of a minor for importation into the United States, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Ryan K. Patrick of the Southern District of Texas.

Jebediah Dishman, 72, of Fredonia, Kansas, pleaded guilty on April 6, 2018, to an information charging him with use of sexually explicit depictions of a minor for importation into the United States.  Today, U.S. District Judge Ewing Werlein Jr. of the Southern District of Texas imposed the nearly 18-year sentence to be followed by 25 years of supervised release during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet.  At the hearing today, he was also ordered to pay a $5,000 fine and $3,000 in restitution.  Dishman will also be ordered to register as a sex offender.

According to admissions made in conjunction with a plea agreement, in September 2014, Dishman began an approximately six-month trip to several countries in Southeast Asia.  During his trip to Indonesia, another tourist observed Dishman engaging in suspicious interactions with minors, masturbating while watching minors and using a tablet to take photographs of a three-year-old German child.  The tourist confronted Dishman, seized his tablet and turned it over to local authorities.  U.S. law enforcement later reviewed the tablet pursuant to a search warrant and discovered sexually explicit images of minors, including the German child, as well as internet searches indicating an interest in the sex trafficking of minors in Southeast Asia.

The FBI Houston Field Office conducted the investigation with the cooperation of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.  Trial Attorneys James E. Burke IV and William M. Grady of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Sherri Zack of the Southern District of Texas prosecuted the case.  Assistant U.S. Attorney Elly Peirson of the Central District of Illinois, previously on detail at CEOS, also served as a vital member of the prosecution team at earlier stages of the litigation.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice.  Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims.  For more information about Project Safe Childhood, please visit www.justice.gov/psc.

HOUSTON - A retired Kansas native who was residing in Panama has been ordered to serve a 210-month prison term, announced U.S. Attorney Ryan K. Patrick and Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division.

Jebediah Dishman, 72, of Fredonia, Kansas, pleaded guilty April 6, 2018, to an information charging him with use of sexually explicit depictions of a minor for importation into the United States. Today, U.S. District Judge Ewing Werlein Jr. of the Southern District of Texas imposed the nearly 18-year sentence to be followed by 25 years of supervised release during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. At the hearing today, he was further ordered to pay a $5,000 fine and $3,000 in restitution. Dishman will also be ordered to register as a sex offender.

According to admissions made in conjunction with a plea agreement, in September 2014, Dishman began an approximately six-month trip to several countries in Southeast Asia. During his trip to Indonesia, another tourist observed Dishman engaging in suspicious interactions with minors, masturbating while watching minors and using a tablet to take photographs of a three-year-old German child.  The tourist confronted Dishman, seized his tablet and turned it over to local authorities. U.S. law enforcement later reviewed the tablet pursuant to a search warrant and discovered sexually explicit images of minors, including the German child, as well as internet searches indicating an interest in the sex trafficking of minors in Southeast Asia.

The FBI conducted the investigation with the cooperation of Immigration and Customs Enforcement’s Homeland Security Investigations. Assistant U.S. Attorney (AUSA) Sherri Zack is prosecuting the case along with Trial Attorneys James E. Burke IV and William M. Grady of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). and of the Southern District of Texas prosecuted the case. AUSA Elly Peirson of the Central District of Illinois, previously on detail at CEOS, also served as a vital member of the prosecution team at earlier stages of the litigation.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.

HOUSTON – A federal jury in Houston has just returned guilty verdicts on all counts as charged against four men involved in the murder of a Brinks armored car guard, among other charges, announced U.S. Attorney Ryan K. Patrick. The jury deliberated for approximately eight hours following a nine-day trial before convicting Nelson Alexander Polk, 40, Marc Anthony Hill, 48, John Edward Scott, 43, and Bennie Charles Phillips Jr., 31, all of Houston.

All four were convicted of attempted interference with commerce by robbery and aiding and abetting discharge of a firearm during a crime of violence. The jury also convicted Hill and Polk of aiding and abetting interference with commerce by robbery and aiding and abetting discharge of a firearm during a crime of violence causing the death of another.

The trial centered on the robbery and murder of a Brinks armored car guard on Aug. 29, 2016, at Wells Fargo Bank located at 13120 Northwest Freeway as well as the attempted robbery of a Loomis armored car guard at Amegy Bank located at 400 N Sam Houston Pkwy E on Dec. 7, 2016.

At trial, the jury heard that a now-deceased individual had allegedly led the robbery crew, which would conduct extensive surveillance of banks’ ATMs and armored car routes before executing the robberies. According to testimony, the plan involved the leader lying in wait for the guard to begin service of the ATM. He would then shoot the guard from a distance with a high caliber rifle so another member of the robbery crew could pull up and take the money.

The jury heard that in the August robbery and murder, the leader of the crew allegedly shot and killed the guard. Polk then drove a vehicle up to the guard, at which time another crew member got out and took the Brinks’ bag of money. Hill had been in the area conducting surveillance.

The men played the same roles in December Amegy robbery attempt. The jury heard that law enforcement watched and listened to calls over the leader’s phone as they prepared to rob the Loomis guard. He and Hill spent hours and took shifts surveilling the bank. On the date of the attempted robbery, the crew leader sat across from the ATM in an apartment complex parking lot ready to take his shot.

When law enforcement moved in to arrest the subjects, the crew leader allegedly came out firing his weapon and police responded, killing him.

On that day, Polk and Trayvees Duncan Bush, 31, also of Houston, sat ready to drive up to the slain guard to steal the money. Phillips recruited Bush and ensured he would be ready on the morning of Dec. 7. Hill was nearby conducting surveillance and would meet up with Polk and Bush to provide them a different getaway vehicle. Scott was further away from the Amegy bank doing surveillance and watching for the armored truck to approach the location.

The jury also heard dozens of wiretap calls as the defendants planned the attempted robbery of the armored truck, which they frequently referred to as commissary or Bentley. They saw video and heard audio from a recording device placed in the Jeep Cherokee the crew leader had allegedly stolen for purposes of the crime. The jury was able to watch and hear as he set up his rifle shot from the back seat and placed mylar over the driver side window to avoid deflecting the bullet.  

Testimony also included a cell site location expert who tracked phone locations of the crew leader, Hill and Polk in the weeks leading up to the August murder and robbery. He was able to show how Hill and Polk played similar roles, surveilling the bank and being near the bank during the time of the murder and robbery.

The defense claimed the deceased crew leader planned the whole thing and they had no knowledge of his intentions. Further, Polk and Hill argued that they were not there during the August robbery and murder. The jury was not convinced and convicted them on all counts as charged.

All of the defendants convicted today face up to 20 years for the robbery and another 10-year-minimum and up to life for the firearms charge which must be served consecutively to any other prison term imposed. Hill and Polk face the same terms for the additional charges for which they were convicted.

U.S. District Judge Hittner presided over the trial.

They will remain in custody pending their sentencing.

Bush had pleaded guilty prior to trial.

The FBI, Houston Police Department and ATF conducted the investigation. Assistant U.S. Attorneys Heather Winter and Richard Hanes are prosecuting the case.

The case is an example of coordination between law enforcement who are part of the Houston Law Enforcement Violent Crime Initiative. 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.

They were 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.

CORPUS CHRISTI, Texas – A 49-year-old Weslaco man has entered a guilty plea to one count of threatening to assault a federal law enforcement officer while engaged in the performance of official duties, announced U.S. Attorney Ryan K. Patrick.

On Dec. 20, 2018, Daniel Campos Jr. entered the primary inspection lane of the U.S. Border Patrol Checkpoint located near Falfurrias driving a tractor trailer. While there, Border Patrol (BP) agents attempted to question him, at which time Campos became hostile, argumentative and refused to answer questions.

During this exchange, a BP canine alerted to the vehicle. As a result, authorities directed Campos to secondary inspection for further processing. While attempting to get him to proceed there, Campos yelled, cursed and refused to comply with the agents request. Campos eventually relented and proceeded to secondary inspection.

At secondary, he continued to yell, shouting, homophobic remarks and threatened five BP agents. Specifically, he threatened to kick the BP canine in the nose, said he would engage in inappropriate conduct with the agents’ mothers and threatened to harm the agents if he saw them outside of their uniforms.

At today’s hearing, Campos admitted he threatened the agents, acknowledging he did so in order to intimidate, impede and interfere with the agents’ investigation. He also confirmed the threat occurred as a result of the agents performing their official duties as BP agents.

U.S. District Judge Nelva Gonzales Ramos accepted the plea and set sentencing for June 27, 2019. At that time, Campos faces up to six years in federal prison and possible $250,000 maximum fine.

Campos will remain in custody pending that hearing.

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

HOUSTON – A federal grand jury has returned two separate indictments charging a total of three men in two armed crime sprees of Houston-area commercial businesses, announced U.S. Attorney Ryan K. Patrick. In one instance, two juveniles working at a Subway restaurant were robbed at gunpoint. The cases are being investigated and prosecuted as part of the recently announced Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Crime Gun Strike Force.

Devante Blackmon, 19, is set to make his initial appearance before U.S. Magistrate Judge Frances H. Stacy at 10:00 a.m. today. He is charged in the armed robbery of a local Dollar Tree store along with Stafford Polk, 22. Polk is considered a fugitive and a warrant remains outstanding for his arrest.

Blackmon and Polk are charged with armed robbery and using firearms in during crimes of violence.

Both are charged with Feb. 22, 2019, armed robbery of the Dollar tree store located at 5360 West 34th Street, in Houston. The defendants allegedly pointed a gun at several store employees and stole money before fleeing as the police arrived.

Blackmon is charged with two additional robberies of local cell phone stores. On May 20, 2018, Blackmon allegedly confronted a store employee who was working at the Metro PCS store located at 7303 Breen Drive in Houston. The indictment alleges Blackmon brandished the weapon and robbed the employee of money and cellular phones at gunpoint. On June 15, 2018, Blackmon also allegedly committed the armed robbery of the Boost Mobile store located at 12151 Northwest Freeway in Houston. Again, Blackmon allegedly brandished his gun and stole money and cellular phones at gunpoint. 

In a separate, but similar case, Russell Pittman aka Randon Booth, 26, of Houston, allegedly committed three separate armed robberies of commercial businesses, including robberies of a Subway restaurant and two cell phone stores, during which he stole U.S. currency and cellular phones before fleeing.

On Feb. 15, 2018, Pittman allegedly confronted two juveniles who were working at the Subway restaurant located at 10086 Long Point Road in Houston. The indictment alleges Pittman brandished the weapon and robbed the employees of money at gunpoint. 

The indictment alleges Pittman committed another armed robbery of the Boost Mobile store located at 2323 South Kirkwood in Houston. Again. He brandished his gun and stole money and cellular phones at gunpoint, according to the charges. Less than a month later, he allegedly also robbed the Cell Phone Zone located at 7111 Harwin Drive in Houston. During that robbery, Pittman pointed the gun at several store employees and stole money and cellular phones, the charges allege.   

Pittman appeared in federal court March 18, 2019, at which time Judge Stacy ordered be held in custody pending further criminal proceedings.

Pittman and Blackmon are bot charged with three counts of interference with commerce by robbery and three counts of using and brandishing a firearm during and in relation to a crime of violence. Polk is charged with one count each of the same crimes.

If convicted, the defendants faces up to 20 years in federal prison for the robbery charges. The firearm offenses alleged in the robberies carry a mandatory minimum term of seven years to life for each offense, which must run consecutively to any other sentence imposed.  Each conviction also carries the possibility of a $250,000 maximum fine.  

ATF and Houston Police Department conducted both investigations, now part of the ATF Crime Gun Strike Force. Assistant U.S. Attorney Steve Mellin is 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.

VICTORIA, Texas – A grand jury has returned a 12-count indictment against a local man, alleging multiple counts of tax evasion and illegally structuring financial transactions for the purpose of evading reporting requirements, announced U.S. Attorney Ryan K. Patrick.

Corey Campbell Boucher surrendered to federal agents without incident this morning. He is expected to make his initial appearance before U.S. Magistrate Judge B. Janice Ellington at 2:00 today.

The indictment includes five counts of making a false material statement on his individual income tax returns for tax years 2012 - 2016. For each of those years Boucher allegedly knew he had received significantly more income than the amount stated in his U.S. Individual Income Tax Return.

The indictment also charges Boucher with seven counts of structuring financial transactions for the purpose of evading reporting requirements. On seven occasions between Sept. 16, 2014, and Aug. 17, 2016, Boucher allegedly broke up large cash deposits into multiple smaller deposits conducted on the same day for the purpose of evading federal reporting requirements, according to the charges.       

If convicted, Boucher faces up to three years in federal prison for each count of tax evasion and a maximum of five years for each count of structuring. Each of the charges also carry a possible $250,00 maximum possible fine.  

IRS – Criminal Investigation 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.

CORPUS CHRISTI, Texas – Two members of a smuggling conspiracy have entered guilty pleas to their part in transporting illegal aliens in the trunk of a Ford 500 through the Sarita Border Patrol (BP) Checkpoint, announced U.S. Attorney Ryan K. Patrick.

Cody Michael Matousek, 33, of Texas City, and Guadalupe Levario, 38, of Galveston, admitted they conspired to transport  illegal aliens on March 27, 2019. Law enforcement has identified Matousek as an affiliate of the Aryan Brotherhood.

On Feb. 6, 2019, a tow truck driver reported that he had been hired to haul a broken down Ford 500 through the checkpoint from Armstrong to an auto parts store in Kingsville. When picking up the vehicle on the shoulder of Highway 77, the tow truck driver observed a tan medium-sized SUV parked behind the Ford 500. At the checkpoint, the driver told agents he felt suspicious about the vehicle he was hauling because the driver refused to provide the keys.

During the inspection, a BP K-9 alerted to the trunk of the Ford 500. Upon opening the trunk, agents observed two individuals from Brazil who admitted to being illegally present in the United States.

Law enforcement had the driver drop off the Ford 500 in Kingsville to the individual who hired him.

Authorities conducted surveillance at the auto parts store in Kingsville and observed the tan medium-sized SUV. Levario exited the SUV and directed where the truck was to be parked. He then paid the driver, at which time he was placed under arrest. Also taken into custody was Matousek, who was driving the SUV.

Matousek had been the subject of an investigation involved with a human smuggling organization affiliated with the Aryan Brotherhood of Texas (ABT) out of Galveston.

Located inside the SUV, authorities discovered numerous iPhones, a backpack and jackets which the undocumented aliens later identified as their property.

The two Brazilians claimed Matousek picked them up somewhere near Mission and transported them to a stash house. The next day, Matousek picked them up and brought them to a motel where he explained the process for them to be smuggled past the checkpoint. There, they also met Levario who told them he would be the one smuggling them past the checkpoint.

The next morning, Levario transported them in a Ford 500. He stopped at an abandoned house south of the checkpoint and put both Brazilians in the trunk of the Ford 500.

Sentencing has been set for July 3, 2019, before U.S. District Judge Nelva Gonzales Ramos. At that time, Matousek and Levario face up to 10 years imprisonment and a $250,000 maximum possible fine.

Matousek will remain in custody, while Levario was permitted to remain on bond pending that hearing.

Immigration and Customs Enforcement’s Homeland Security Investigations, BP, U.S. Marshals Service and the Kingsville Police Department all assisted in the joint investigation. Assistant U.S. Attorney Sara Popejoy is prosecuting the case.

HOUSTON – A federal grand jury has returned an indictment against four Houston men for robbery and using firearms during the crimes of violence, announced U.S. Attorney Ryan K. Patrick. During one of the alleged offenses, an elderly employee was shot and killed.

Those charged include Melvin Jones, 20, Daivion Gully, 18, Deanjelo Wells, 19, and Artavius Johnson, 29, all of Houston. Previously in state custody on related charges, all were transferred to federal custody and are set to make their initial appearances this morning at 10:00 a.m. before U.S. Magistrate Judge Frances H. Stacy. A federal grand jury returned the indictment March 14, 2019.

The indictment alleges four separate robberies of local convenience stores, during which the defendants stole U.S. currency before fleeing.

On Nov. 3, 2018, Jones, Gully, Wells and Johnson allegedly robbed the Sunny Food Mart at gunpoint on 9075 South Dairy Ashford in Houston. During the violent crime, two suspects discharged their firearms several times, killing a 66-year old store clerk.

The following month, the indictment alleges Jones and Wells committed two more armed robberies, both on Oct. 24, 2018. The first occurred at the Chevron station at 8265 Richmond Avenue, according to the charges. Less than two hours later, they allegedly targeted Gulf Gas located on 3300 Yellow Stone. The indictment further alleges Gully and Wells had robbed the same Gulf Gas convenience store at gunpoint just a month prior - on Sept. 26, 2018. 

All four defendants were captured and arrested Nov. 7, 2018.

They are all charged with aiding and abetting interference with commerce by robbery and aiding and abetting use, brandishing and discharging a firearm during and in relation to a crime of violence.

If convicted, the men face up to 20 years in federal prison for the robbery charges. The firearm offense alleged in the robbery of the Sunny Food Mart, which resulted in death, carries a mandatory minimum of 10 years up to life in federal prison, or the possibility of death which must run consecutively to any other sentence imposed. The remaining firearms charges carry a mandatory and consecutive minimum of seven years up to life imprisonment. Each conviction also carries the possibility of a $250,000 fine.

The Bureau of Alcohol, Tobacco, Firearms and Explosives and Houston Police Department conducted the investigation as part of the recently announced Crime Gun Strike Force. Assistant U.S. Attorneys Carrie Wirsing and Jill J. Stotts are prosecuting the case.

The indictment is an example of coordination between law enforcement who are part of the Houston Law Enforcement Violent Crime Initiative. 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 cases are 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.

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 Missouri City man has been ordered to prison for sex trafficking of a minor female, announced U.S. Attorney Ryan K. Patrick. Eddie Charles Larue pleaded guilty Oct. 11, 2018, to one count of sex trafficking.

Today, U.S. District Judge Sim Lake sentenced LaRue to 180 months in federal prison. Additional information was also presented today, including a letter read by the child victim detailing her disappointment, fear and bouts of crying when she thinks about what happened to her. Larue will serve the rest of his life on supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. Larue will also be ordered to register as a sex offender.

At the time of his plea, Larue admitted that from July 3-4, 2017, he recruited a 12-year-old girl to engage in commercial sex acts for money along the 1.3 mile stretch of Bissonnet St., commonly referred to as “The Track.” He also admitted he used force and threats of force to compel his victim into prostitution and collected all of the money she earned.  

The Human Trafficking Rescue Alliance (HTRA) conducted the investigation. HTRA law enforcement includes members of the FBI, Immigration and Customs Enforcement’s Homeland Security Investigations, Houston Police Department, sheriff’s offices in Harris and Montgomery counties, Texas Alcoholic and Beverage Commission, Texas Attorney General’s Office, Department of State, Department of Labor, IRS-Criminal Investigation and the Texas Department of Public Safety.

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 Sebastian Edwards and Jill Stotts are prosecuting the case.

McALLEN, Texas ‐ A former account representative for a toxicology testing company has been ordered to prison in connection with a scheme to defraud Medicare, announced U.S. Attorney Ryan K. Patrick.

Ivar Cantu, 47, of Palmview, pleaded guilty Dec. 19, 2017, to conspiring to commit health care fraud.

Today, U.S. District Judge Alvarez imposed a 56-month sentence for Cantu, to be immediately followed by three years of supervised release.

Cantu fraudulently set up an account between a medical clinic where a co-conspirator was employed as a laboratory technician and the toxicology testing company for whom Cantu was an account representative. During the latter half of 2015, Cantu and his co-conspirators misappropriated patient identities and urine specimens from the medical clinic. They then sent them to the toxicology testing company without consent of the patient or doctor in order to receive commissions and collection fees from the testing company. In order to carry out the scheme, Cantu and his co-conspirators forged patient signatures, falsified medical records and created fictitious documents.

As a result of the scheme, Medicare was billed $836,788 between May 2015 and December 2015.

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

The FBI, Department of Health and Human Services‐Office of Inspector General and Texas Health and Human Services Commission conducted the investigation. Assistant U.S. Attorney Andrew Swartz is prosecuting the case.

HOUSTON - A total of 47 people are now in custody following the return of a 43-count indictment alleging drug-trafficking and related crimes in the Houston and Galveston areas. The case will be prosecuted in the Galveston Division of the Southern District of Texas. 

U.S. Attorney Ryan K. Patrick made the announcement along with Drug Enforcement Administration (DEA) Special Agent in Charge Will R. Glaspy, Special Agent in Charge Mark Dawson of Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Chief Vernon Hale of the Galveston Police Department (GPD), Special Agent in Charge Designee Brett Rovey of Internal Revenue Service - Criminal Investigation (CI) and Deputy U.S. Marshal Alfredo Perez of the U.S. Marshals Service (USMS).

The arrests are the culmination of 31-month Organized Crime Drug Enforcement Task Force investigation (OCDETF) dubbed Operation Wrecking Ball. 

“This operation is the result of countless hours of hard work by officers and agents from many different agencies,” said Patrick. “OCDETF is uniquely able to marshal resources for complex cases. The Department of Justice is committed to disrupting the work of international cartels and other drug trafficking organizations. This case also is reinvigorating my office’s commitment to Galveston. For the first time in decades, we have a full time prosecutor on the island who is focused on cases that will have a local impact in Brazoria, Chambers, Galveston and Matagorda counties.”

During the law enforcement operation today and yesterday that spanned multiple jurisdictions and states, authorities took a total of 43 people into custody.  They join the four individuals who were previously in custody. Nine are considered fugitives and warrants remain outstanding for their arrests. 

“Today’s enforcement operation marks the culmination of a 3 ½ year investigation targeting one of the largest suspected drug organizations seen in Southeast Texas in decades,” said Glaspy. “The success of this investigation was possible only because of the many law enforcement agencies dedicated to protecting our communities in the greater Houston/Galveston area from those who prey on them.”

The indictment, which was returned in November 2018 and unsealed today, alleges the defendants engaged in a variety of cocaine and heroin transactions. Some also allegedly conspired to commit money laundering and illegally transferred money to avoid reporting requirements.

The charges allege the crimes occurred between Feb. l, 2016, and April 19, 2018. According to the indictment, the drugs were smuggled into the United States from Colombia and Mexico. Heroin and Cocaine was then distributed through Houston to Atlanta, Georgia; Buffalo and New York, N.Y.; Miami, Florida; New Orleans, Louisiana; and Norfolk, Virginia.

This case is a clear example of the kind of federal matters we are bringing to the Galveston Division

The indictment also seeks forfeiture of any illegal proceeds of the alleged crimes. To date, approximately $3.1 million has been seized.

Those arrested are expected to make initial appearances before U.S. Magistrate Judge Andrew Edison in Houston beginning at 10:00 a.m. March 21, 2019.

The DEA conducted the investigation along with HSI, Houston Police Department, IRS-CI, USMS, GPD and Galveston County Sheriff’s Office with assistance of the Texas National Guard Joint Counterdrug Task Force. Assistant U.S. Attorney Kenneth Cusick 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 22-year-old Beaumont resident has been ordered to federal prison following his conviction for robbery and brandishing a firearm during a crime of violence, announced U.S. Attorney Ryan K. Patrick. Dveaunta Montez Hall pleaded guilty Dec. 17, 2018.

Today, Senior U.S. District Judge John D. Rainey sentenced Hall to 100 months in federal prison - 16 months for the robbery offense as well as a 84-month consecutive term for brandishing a firearm during a crime of violence. The prison term will be immediately followed by five years of supervised release.

On March 14, 2018, the Corpus Christi Police Department (CCPD) responded to an aggravated robbery at the Whataburger located in the 4100 block of South Staples. Hall had entered the business and pointed an assault rifle at employees and customers inside while demanding money from the register. The male then fled the location on foot.

Shortly thereafter, responding officers located Hall, who still had the assault rifle in his possession, near the location. During the investigation, officers discovered Hall had stolen the assault rifle from a nearby apartment shortly before committing the robbery.

Hall will remain in federal custody pending transfer to a U.S. Bureau of Prisons facility.

CCPD and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney Lance Watt is prosecuting the case.

HOUSTON - A 23-year-old Chinese national who resided in La Marque has been ordered to federal prison after admitting to possessing a firearm while being an illegal alien and aggravated identity theft, announced U.S. Attorney Ryan K. Patrick along with Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Special Agent in Charge Mark Dawson and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Fred Milanowski.

Xiangyu Zhang pleaded guilty Dec. 14, 2018.

Today, U.S. District Judge Gray Miller handed him a total 61-month sentence - 37 months for the firearms conviction and a mandatory and consecutive 24 months for the identity theft. Not a U.S. citizen, he is expected to face deportation proceedings following the sentence. At the hearing, Judge Miller noted his concern with Zhang’s actions and felt a prison term at the higher end of the guidelines was appropriate.

Zhang remained in the United States two years after his visa expired. He came to law enforcement’s attention in July 2018 when he entered an internet chat session on the Department of Veteran’s Affairs (VA) Crisis Line and threated to kill school children by using firearms. Zhang is a not a U.S. veteran.

Law enforcement arrested him at a gas station located close to his residence. At that time, he was sitting in a vehicle in possession of two firearms, including an AM-15 rifle. Both firearms had rounds in the chamber. 

Upon Zhang’s arrest, law enforcement also found a passport belonging to a woman who lived in the Dallas area. Zhang had stolen the woman’s purse containing the passport in August 2017 after he served as her Uber driver. Within hours of stealing her purse, Zhang, while using the woman’s identity without her permission, attempted to purchase several high end items online from Apple.  

Law enforcement also found a picture of a fake U.S. passport page with Zhang’s picture and the woman’s passport number on Zhang’s phone. 

A few months after stealing the purse, Zhang defrauded Bank of America in March 2018 for more than $11,000. In late June 2018, and a few days before making those threats on the VA chat line, Zhang stole an IRS refund check from his neighbor’s mailbox and deposited it into his bank account. 

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

HSI and ATF conducted the investigation. Assistant U.S. Attorney Alamdar Hamdani is prosecuting the case.

BROWNSVILLE, Texas – A 69-year-old permanent legal resident from Mexico living in Brownsville has entered pleas of guilty to theft/embezzlement of bank funds, theft of funds by a bank employee and aggravated identity theft, announced U.S. Attorney Ryan K. Patrick.

Maria de Los Angeles Caballero aka Angie Caballero pleaded guilty today before U.S. District Judge Rolando Rivera.

From about November 2010 to July 2017, while employed as vice-president at Texas Community Bank in Brownsville, Caballero withdrew funds from two customer accounts without authorization. From one account, she ordered and obtained blank checks on which she then proceeded to forge the customer’s signature, fill out amounts and deposit the checks into a Wells Fargo account under the names of two of her relatives. 

Authorities discovered 24 checks Caballero forged in this manner. Additionally, Caballero ordered and signed two cashier’s checks which she then deposited into her relatives’ account at Wells Fargo Bank.

The total amount she embezzled from the two accounts was proved to be $1,516,391.57.

Judge Olvera accepted the pleas and set sentencing for June 12, 2019. At that time, Caballero faces up to 30 years in of imprisonment as well as a $1 million fine. The identity theft also carries a mandatory 24 months which must be served consecutively to any other term imposed.

She was permitted to remain on bond pending that hearing.

The government will seek to obtain restitution on behalf of the two bank customers to recover the embezzled amount.

The FBI conducted the investigation. Assistant U.S. Attorney Oscar Ponce is prosecuting the case.

HOUSTON - Five area men have been ordered to prison for their roles in a string of Houston-area armed robberies, including one in which someone was almost killed, announced U.S. Attorney Ryan K. Patrick.

Reshaun Lee Jenkins, 25, James Daniel Henderson, 24, Ashton Armstrong, 24, Cedric L. Andrews, 44, and Bradley Alexander, 28, had all previously pleaded guilty for their crimes as did Tadarius Robinson, 23, and Joseph Adams, 34, both also of Houston, and Mik Yia Shua Faye Durden, 22, of Livingston, and Travescy Cauley, 27, of Beaumont.

Today, U.S. District Judge Gray Miller imposed a total of 255 months in prison for Henderson. He was ordered to serve 51 months for the robberies in addition to another 204 months, which includes 120 months for discharging a firearm during the Wing Stop robbery and 84 months for brandishing a firearm during the robbery of an El Mexsal Taqueria robbery. The sentence for the firearm convictions must be served consecutively to each other and the sentence imposed for the robberies, resulting in the more than 21-year-sentence.

In imposing the massive term of imprisonment, the court noted Henderson had been the shooter in the Wing Stop robbery at 10749 North Freeway on Oct. 2, 2015, during which time an employee was almost killed. 

Jenkins and Armstrong were both ordered to serve a total of 141 months, while Andrews and Alexander received a total of 33, and 147 months, respectively.  As part of their sentences, Jenkins, Armstrong and Alexander were each required to serve 84 months consecutive to the sentences they received for the robberies for brandishing a firearm during the robberies to which they pleaded guilty.

Adams had previously received a 36-month term of imprisonment. Robinson, Durden and Cauley are still pending sentencing. 

Robinson, Alexander and Armstrong committed an armed robbery of a T-Mobile store located at 10730 Eastex Freeway on Sept. 27, 2015. Armstrong had entered the store brandishing a firearm, while Robinson and Alexander waited in the getaway vehicle. U.S. currency and cellular phones were taken.

Three days later, Jenkins, Henderson, Armstrong, Durden and Alexander robbed the El Mexsal Taqueria located at 5797 North Sam Houston. Henderson, Cauley and Armstrong ordered the employees and customers to the ground at gunpoint, while Durden and Jenkins drove getaway cars. Alexander acted as a lookout during the robbery.  

Robinson, Jenkins, Adams, Henderson, Andrews and Alexander then committed the armed robbery at the Wing Stop restaurant located at 10749 North Freeway on Oct. 2, 2015. Henderson entered the store with a gun drawn. When an did not immediately get down on the ground, Henderson shot him, causing permanent bodily injuries. Andrews and Adams were inside the restaurant during the robbery, while Robinson, Alexander and Jenkins sat outside acting as lookouts and the getaway driver. Alexander disassembled the firearm after the shooting and threw pieces out of the car window as they fled the scene. 

Finally, Armstrong, Durden and Alexander then robbed Movie Magic at 6520 Airline on Oct. 9, 2015. Armstrong robbed the store at gunpoint. As they fled the scene and Durden drove the getaway car, Alexander fired his gun at a civilian who was chasing the robbers. Armstrong attempted to fire at the civilian but his gun jammed. 

The case is an example of coordination between law enforcement who are part of the Houston Law Enforcement Violent Crime Initiative. 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 cases are 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.

The Bureau of Alcohol, Tobacco and Firearms conducted the investigation in conjunction with the Houston Police Department and Harris County Sheriff’s Office. Assistant U.S. Attorneys Richard Hanes and Heather Winter are prosecuting the case. 

CORPUS CHRISTI – A 22-year-old resident of Robstown has been ordered to prison following his conviction of distributing child pornography, announced U.S. Attorney Ryan K. Patrick. Trey Escareno pleaded guilty Nov. 29, 2018.

Today, Senior U.S. District Judge Janis Graham Jack sentenced Escareno to 170 months in prison. The sentence will be immediately followed by a lifetime term of supervised release, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. Escareno will also be ordered to register as a sex offender.

The investigation into Escareno began when an undercover FBI agent entered an online chatroom and observed a user, later identified as Escareno, posting links. He had posted several items, all of which would automatically download large amounts of child pornography onto the computer of the user who clicked on them.

Agents later executed a search warrant in Robstown on Escareno’s residence. That resulted in the discovery of several items, including a cellular telephone on which a forensic analysis identified numerous images of child pornography. Law enforcement also uncovered evidence that Escareno had engaged in sexual contact with a minor relative.

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

The FBI conducted the investigation with the assistance of the Corpus Christi Police Department - Internet Crimes Against Children Task Force.

Assistant U.S. Attorney Brittany L. Jensen 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 or internet safety education, please visit the DOJ website.

The Justice Department today reached an agreement with Harris County, Texas, to resolve its lawsuit in the Southern District of Texas alleging that Harris County violated Title II of the Americans with Disabilities Act (ADA) by failing to provide an accessible voting program to voters with disabilities, including accessible polling places. Harris County’s voting program—the third largest in the country—includes over 750 polling places. The Justice Department’s complaint alleges that many polling places in Harris County have architectural barriers—such as steep ramps, gaps in sidewalks and walkways, and locked gates along the route barring pedestrian access—that make them inaccessible to voters with mobility and vision disabilities.

“Every eligible voter with a disability must have an equal opportunity to vote in person at his or her local polling place,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “This fundamental right secures participation in our democracy and it must not be diminished or restricted by barriers to access.”

“The announcement today demonstrates my office’s continued commitment to enforcing all federal civil rights laws, including the ADA,” said U.S. Attorney Ryan K. Patrick. “I commend Harris County for its decision to enter into this agreement in order to achieve our shared goal of making polling places accessible to all eligible voters.”

Under the agreement, Harris County will create and implement policies, practices, and procedures to bring its voting program into compliance with the ADA. These policies, practices and procedures include: creating an effective system for selecting accessible facilities for polling places; surveying polling place facilities to identify accessibility barriers; procuring and implementing temporary accessibility remedies, such as mats or ramps, during elections; and providing effective curbside voting. Harris County will also conduct accessibility surveys of nearly two-thirds of its polling places. In addition, Harris County will hire subject matter experts to provide technical assistance and training to the County’s staff, vendors, and election officials on how to provide accessible polling places, as well as to provide reports to the parties on the County’s progress in complying with the agreement.

This settlement is part of the Department’s ADA Voting Initiative, which focuses on protecting the voting rights of individuals with disabilities.  A hallmark of the ADA Voting Initiative is its collaboration with jurisdictions to increase accessibility at polling places.  Through this Initiative, the Department has surveyed more than 1,600 polling places and increased polling place accessibility in more than 35 jurisdictions, including Chicago, Illinois; Hidalgo County, Texas; Cumberland County, Pennsylvania; and Coconino County, Arizona.

Those interested in finding out more about this settlement or the ADA may call the Justice Department’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD), or access its ADA website at www.ada.gov. ADA complaints may be filed online at http://www.ada.gov/complaint/.

HOUSTON – The Justice Department today reached an agreement with Harris County to resolve its lawsuit alleging that Harris County violated Title II of the Americans with Disabilities Act (ADA) by failing to provide an accessible voting program to voters with disabilities, including accessible polling places. Harris County’s voting program - the third largest in the country - includes over 750 polling places. The Justice Department’s complaint alleges that many polling places in Harris County have architectural barriers - such as steep ramps, gaps in sidewalks and walkways and locked gates along the route barring pedestrian access - that make them inaccessible to voters with mobility and vision disabilities.

“Every eligible voter with a disability must have an equal opportunity to vote in person at his or her local polling place,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “This fundamental right secures participation in our democracy and it must not be diminished or restricted by barriers to access.”

“The announcement today demonstrates my office’s continued commitment to enforcing all federal civil rights laws, including the ADA,” said U.S. Attorney Ryan K. Patrick. “I commend Harris County for its decision to enter into this agreement in order to achieve our shared goal of making polling places accessible to all eligible voters.”

Under the agreement, Harris County will create and implement policies, practices and procedures to bring its voting program into compliance with the ADA. These policies, practices and procedures include: creating an effective system for selecting accessible facilities for polling places; surveying polling place facilities to identify accessibility barriers; procuring and implementing temporary accessibility remedies, such as mats or ramps, during elections; and providing effective curbside voting. Harris County will also conduct accessibility surveys of nearly two-thirds of its polling places. In addition, Harris County will hire subject matter experts to provide technical assistance and training to the County’s staff, vendors and election officials on how to provide accessible polling places, as well as to provide reports to the parties on the County’s progress in complying with the agreement.

This settlement is part of the Department’s ADA Voting Initiative, which focuses on protecting the voting rights of individuals with disabilities. A hallmark of the ADA Voting Initiative is its collaboration with jurisdictions to increase accessibility at polling places.  Through this Initiative, the Department has surveyed more than 1,600 polling places and increased polling place accessibility in more than 35 jurisdictions, including Chicago, Illinois; Hidalgo County, Texas; Cumberland County, Pennsylvania; and Coconino County, Arizona.

Those interested in finding out more about this settlement or the ADA may call the Justice Department’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD), or access its ADA website at www.ada.gov. ADA complaints may be filed online at http://www.ada.gov/complaint/.

CORPUS CHRISTI, Texas – A 31-year-old Corpus Christi resident has been ordered to federal prison following his conviction for being a previously convicted felon in possession of a firearm and ammunition, announced U.S. Attorney Ryan K. Patrick. Ricardo Diego Garza pleaded guilty Nov. 29, 2018.

Today, Senior U.S. District Judge Janis Graham Jack sentenced Garza to 110 months in custody to be immediately followed by three years of supervised release. In handing down the sentence, the court noted that each of the previous sentences of incarceration had not deterred the defendant’s criminal conduct.

On April 14, 2018, law enforcement responded to a disturbance with a weapon at a business located in the 5800 block of Weber in Corpus Christi. Witnesses had reported a male in a white vehicle had pointed a black handgun with an extended magazine at another individual at that location.

Upon arrival, officers approached Garza who was attempting to exit the driver’s seat of the vehicle, at which time officers observed and seized a .40 caliber semi-automatic handgun containing an extended magazine loaded with 21 rounds of ammunition.

Garza was previously convicted of multiple felony offenses and, therefore, is prohibited from possessing firearms and ammunition per federal law.

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

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

HOUSTON – A Houston man has been ordered to prison following his convictions of theft of government money and aggravated identity theft, announced U.S. Attorney Ryan K. Patrick along with Special Agent in Charge D. Richard Goss of IRS – Criminal Investigation (CI).  

Eric W. King, 49, of Houston, and Theresa K. Goffney, 46, of Rosharon, pleaded guilty May 29 and July 9, 2018, respectively. The court found the defendants submitted a total of 179 fraudulent tax returns requesting refunds in the amount of $888,261.  

Today, U.S. District Judge Nancy F. Atlas imposed a 65-month total sentence for King – 41 months for the conspiracy and a consecutive 24 months for the identity theft. He was further ordered to serve three years of supervised release following his sentence and must pay $29,264 in restitution.

Co-defendant Goffney will be sentenced Friday, March 15.

The defendants admitted they unlawfully acquired the personal identifying information (PII) of others such as name, date of birth, Social Security number and address. They then used the unlawfully acquired PII to file fraudulent tax returns in the victims’ names.

The fraudulent tax returns requested the IRS refund to be directed to bank accounts the conspirators opened and controlled, checks mailed to addresses conspirators controlled or be loaded onto prepaid debit cards they had purchased. 

King 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 – CI conducted the investigation. Assistant U.S. Attorney Jay Hileman is prosecuting the case.

A former U.S. Border Patrol Agent (BPA) was sentenced to 112 months in prison followed by three years of supervised release for accepting bribes in return for helping to smuggle illegal drugs into the United States.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ryan K. Patrick for the Southern District of Texas, Special Agent in Charge Perrye Turner of the FBI’s Houston Field Office and Special Agent in Charge Juan Benavides of U.S. Customs and Border Protection (CBP) Office of Professional Responsibility (OPR) made the announcement.

Robert Hall, 45, of La Feria, Texas, a former BPA, was sentenced by U.S. District Judge Ewing Werlein Jr. of the Southern District of Texas, who also ordered Hall to pay a fine in the amount of $20,000.  Hall pleaded guilty to one count of bribery on Sept. 14, 2018, which was unsealed today.

According to the plea documents, between 2004 and 2014, Hall, working with others including Daniel Hernandez, 46, of Roseville, California, facilitated the trafficking of illegal drugs, including marijuana, into the United States from Mexico on behalf of a drug trafficking organization (DTO).  In exchange for cash payments, he provided an individual in the DTO with CBP sensor locations, the locations of unpatrolled roads at or near the U.S.-Mexico border, the number of BPAs working in a certain area, keys to unlock CBP locks located on gates to ranch fences along the border and CBP radios.  In total, Hall accepted over $50,000 in cash from the DTO in exchange for using his position as a BPA to enable the DTO’s drug shipments to cross the border into Texas without law enforcement detection.

Daniel Hernandez pleaded guilty Feb. 5 to one count of conspiracy to bribe a public official before U.S. Magistrate Judge Nancy K. Johnson in the Southern District of Texas.  Sentencing has been scheduled for May 9, before U.S. District Judge Gray H. Miller, who accepted the plea on Feb. 8.

The FBI investigated the case with the assistance of CBP OPR.  Trial Attorneys Rebecca Moses and Peter M. Nothstein of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Julie N. Searle of the Southern District of Texas are prosecuting the case.

HOUSTON - A former U.S. Border Patrol (BP) agent was sentenced to 114 months in prison followed by three years of supervised release for accepting bribes in return for helping to smuggle illegal drugs into the United States.

U.S. Attorney Ryan K. Patrick, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Special Agent in Charge Perrye Turner of the FBI’s Houston Field Office and Special Agent in Charge Juan Benavides of U.S. Customs and Border Protection (CBP) Office of Professional Responsibility (OPR) made the announcement.

Former BP agent Robert Hall, 45, of La Feria, pleaded guilty Sept. 14, 2018. Today, U.S. District Judge Ewing Werlein Jr. imposed the sentence and further ordered Hall to pay a $20,000 fine.

According to the plea documents, between 2004 and 2014, Hall, working with others including Daniel Hernandez, 46, of Roseville, California, facilitated the trafficking of illegal drugs, including marijuana, into the United States from Mexico on behalf of a drug trafficking organization (DTO). In exchange for cash payments, he provided an individual in the DTO with CBP sensor locations, the locations of unpatrolled roads at or near the U.S.-Mexico border, the number of BP agents working in a certain area, keys to unlock CBP locks located on gates to ranch fences along the border and CBP radios. In total, Hall accepted over $50,000 in cash from the DTO in exchange for using his position as a BP agent to enable the DTO’s drug shipments to cross the border into Texas without law enforcement detection.

Daniel Hernandez pleaded guilty Feb. 5 to one count of conspiracy to bribe a public official before U.S. Magistrate Judge Nancy K. Johnson in the Southern District of Texas. Sentencing has been scheduled for May 9, before U.S. District Judge Gray H. Miller, who accepted the plea on Feb. 8.

The FBI investigated the case with the assistance of CBP - OPR. Assistant U.S. Attorney Julie N. Searle and Trial Attorneys Rebecca Moses and Peter M. Nothstein of the Criminal Division’s Public Integrity Section are prosecuting the case.

McALLEN, Texas – A local pharmacy marketer entered a guilty plea in connection with her role in a multi-million dollar illegal kickback conspiracy involving a pharmacy in the Rio Grande Valley and doctors throughout Texas, announced U.S. Attorney Ryan K. Patrick.

Victoria Renee Guerra, 35, a licensed pharmacist of McAllen, entered her guilty plea before U.S. District Judge Micaela Alvarez this morning. 

At the hearing, Guerra admitted that as part of her role as a purported marketer, she recruited physicians to write prescriptions for expensive compound drugs to be filled by Pharmacy A  and for which the pharmacy would bill federal health care programs. 

During an approximately two-year period starting in late 2014, the owner of Pharmacy A paid Guerra approximately $7.5 million in return for compound drug prescriptions written by physicians Guerra recruited. In turn, Guerra paid a cut of the payments from Pharmacy A to the prescribing physicians. For example, Guerra admitted she paid approximately $2.1 million in kickbacks to one of the physicians sending prescriptions to Pharmacy A, identified in the Criminal Information as “Doctor 1.” 

During the conspiracy, pharmacy A submitted claims totaling approximately $42.2 million to the U.S. Department of Labor, Office of Workers Compensation Program, for prescriptions that doctor 1 wrote for beneficiaries of the Federal Employee’s Compensation Act.

Guerra pleaded guilty to conspiracy to violate the federal anti-kickback statute, which prohibits the payment of kickbacks to induce physicians to write prescriptions for which payment may be made in whole or in part under a federal health care benefit program. At sentencing, which is scheduled for May 29, 2019, Guerra faces up to five years in federal prison and a possible $25,000 maximum fine.

She was permitted to remain on bond pending  that hearing. 

The U.S. Postal Service – Office of Inspector General (OIG), Department of Labor – OIG, FBI, Veterans Affairs – OIG, Defense Criminal Investigative Service and the Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorney Andrew Swartz is prosecuting the case.

McALLEN, Texas – A 45-year-old former sergeant with the Progresso Police Department has been convicted of two counts of aiding and abetting the attempt to possess with intent to distribute more than five kilograms of cocaine, announced U.S. Attorney Ryan K. Patrick. The jury deliberated for three hours before convicting Giovanni Hernandez, of Weslaco, following a four-day trial.

Hernandez had been a sergeant with the Progreso Police Department. The jury heard that from March through August 2017, a confidential source met with Hernandez seeking assistance for a drug trafficking organization. The meetings culminated in Hernandez agreeing to scout for law enforcement to enable a vehicle he believed contained a controlled substance to pass through the Progreso area undetected.

At trial, the jury heard recordings between the informant and Hernandez discussing scouting for the drug load. The government presented evidence that once the drug load made it successfully through Progreso on July 15, 2017, Hernandez gave the informant his Progreso police badge.

The defense attempted to attack the credibility of the witnesses and denied any of Hernandez’s knowledge of the drug trafficking scheme or his attempt to participate in it. The jury was not convinced and convicted him on all counts as charged.

Hernandez had been previously released on bond but was remanded to custody after the verdict where he will remain pending his sentencing hearing, set for May 22, 2019. At that time, he faces a minimum of 10 years in federal prison as well as a possible $10 million maximum fine.

Immigration and Customs Enforcement’s Homeland Security Investigations, Drug Enforcement Administration and IRS - Criminal Investigations conducted the Organized Crime Drug Enforcement Task Force Investigation which was dubbed Operation Blue Shame. Assistant U.S. Attorneys (AUSA) James H. Sturgis and Kristen J. Rees are prosecuting this case. AUSA Anibal Alaniz is prosecuting the related drug trafficking case.

HOUSTON – A 36-year-old Houston woman has been ordered to pay more than $15 million in restitution following her conviction of conspiring to commit $50 million health care fraud as well laundering money, announced U.S. Attorney Ryan K. Patrick. A jury convicted Daniela Gozes-Wagner in September 2017.

Today. U.S. District Judge David Hittner ordered Gozes-Wagner to serve a total of 240 months imprisonment to be immediately followed by three years of supervised release. She was further ordered to pay restitution of $15,283,985. At the hearing, the court noted Gozes-Wagner had “wreaked havoc” on the health care system of the United States.

Beginning in 2009, Gozes-Wagner conspired with others to falsely bill Medicare and Medicaid for millions of dollars of medical tests which were either not performed or were medically unnecessary. 

Most of these tests supposedly occurred at 28 testing facilities over many years. However, when law enforcement conducted law enforcement operations there, they discovered that many of the facilities were actually empty offices. 

To prevent Medicare from learning about the scheme, Gozes-Wagner hired “seat warmers” – young women paid to sit and answer phones in the nearly empty offices that comprised many of the “testing facilities.” They believed they could spend most of their time watching streaming movies. However, when Medicare investigators tried to inspect the empty offices, these “seat warmers” were instructed to notify Gozes-Wagner and prevent the investigators from inspecting the offices. 

The conspirators also hid the true owners of the testing facilities by placing them in the names of other people. 

The FBI, Texas Attorney General’s Medicaid Fraud Control Unit and the Department of Health and Human Services conducted the investigation with the assistance of the Office of Personnel Management and Railroad Retirement Board. Assistant U.S. Attorneys Michael Chu, Jim McAlister and Jason Smith prosecuted the case.

McALLEN, Texas – Two Rio Grande Valley residents have been taken into custody for submitting fraudulent claims for payment to Texas Medicaid for durable medical equipment (DME) supplies that were never delivered to Medicaid beneficiaries, announced U.S. Attorney Ryan K. Patrick.

A federal grand jury in McAllen returned the indictment Feb. 26, 2019, against Everardo Villarreal, 46, of Edinburg, and Delilah Rae Robles, 38, of Weslaco. It was unsealed today as they were taken into custody. They are expected to make initial appearances before U.S. Magistrate Judge Scott Hacker on Friday, March 1, 2019.

According to the indictment, Villarreal was the owner and operator of now defunct Durable Medical Supply Depot of Elsa. Robles was his secretary and Medicaid biller.

The indictment alleges they committed one count of conspiracy to commit health care fraud, four counts of substantive health care fraud as well as two counts of aggravated identity theft of local Medicaid beneficiaries’ personal Medicaid numbers.

From on or about April 2010 to on or about September 2014, Villarreal and Robles allegedly  billed Texas Medicaid in excess of $850,000 for DME that was either never delivered or was only partially delivered to Medicaid beneficiaries.  The indictment alleges Villarreal and Robles purchased or arranged for the purchase of personal Medicaid identification numbers of local Medicaid beneficiaries in order to submit false and fraudulent claims to Medicaid for items that were never intended to be delivered. 

Each of the counts of health care fraud related matters carries a maximum of 10 years in federal prison. If convicted of identity theft, they each also face a mandatory two years imprisonment which must be served consecutively to any other sentence imposed. All of the charges also carry a $250,000 maximum possible fine.  

The Texas Attorney General’s Medicaid Fraud Control Unit, Department of Health and Human Services – Office of Inspector General and the FBI conducted the investigation. Special Assistant U.S. Attorney Marian Swanberg and  Assistant U.S. Attorney Andrew Swartz 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.

CORPUS CHRISTI, Texas – A federal grand jury in Corpus Christi has returned an indictment against two local men for multiple felonies, including carjacking and weapons charges, announced U.S. Attorney Ryan K. Patrick. 

The six-count indictment was returned today against Carlos Moreno, 25, and Leonard Reyna, 24, both of Corpus Christi. They are charged with robbery, carjacking, brandishing a firearm during a crime of violence, discharging a firearm during a crime of violence each for being previously convicted felons in possession of firearms.    

Reyna was already in custody on the charges and is expected to make his initial appearance before a U.S. magistrate judge in the near future. Moreno is considered a fugitive and a warrant remains outstanding for his arrest. Anyone with information about his whereabouts is asked to contact the U.S. Marshals service at 1-800-336-0102.

According to the allegations, on Aug. 26, 2018, the Corpus Christi Police Department (CCPD) responded to an aggravated robbery at the Corpus Christi Trade Center located in the 2800 block of South Padre Island Drive. Upon arrival, officers discovered that a group of males had allegedly approached a local jewelry store displaying handguns and demanded several items of jewelry. The men then fled on foot out the back alley of the location, according to the criminal complaint, originally filed on the case. At the scene, officers allegedly recovered several rounds of 9mm and .45 caliber ammunition and a set of keys belonging to a nearby vehicle. 

Court documents further allege that as officers continued to investigate, CCPD received another call, this time involving a shooting at the Stripes convenience store located in the 6000 block of Ayers. When officers responded to that location, they found a victim laying inside the store, according to the charges. He claimed he had been parked in his vehicle when two males approached and pointed a gun at him, demanding the keys to his truck. He refused. The charges allege that one of the men then fired, striking the victim in the left arm and stomach. The two males then allegedly fled the location. 

Court records indicate that witnesses at the scene provided a physical description of the males that matched the suspects at the earlier Trade Center robbery. 

If convicted of carjacking, both men face up to 25 years in federal prison, while the robbery carries up to 20 years of imprisonment. For being felons in possession of firearms, they could also receive a 10-year-maximum term of imprisonment. For brandishing and discharging a weapon during a crime of violence, the punishment is seven and 10 years minimum, respectively, which must be served consecutively to any other prison term imposed. In addition, each charge carries a possible fine of up to $250,000

CCPD and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney Lance Watt 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.

A former sales representative and the president of a U.S.-based company were charged in an indictment unsealed today on foreign bribery, wire fraud and money laundering charges for their alleged roles in a scheme to corruptly secure business advantages, including contracts and payment on past due invoices, from Venezuela’s state-owned and state-controlled energy company, Petroleos de Venezuela S.A. (PDVSA).

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

Rafael Enrique Pinto Franceschi (Pinto), 40, of Miami, Florida, and Franz Herman Muller Huber (Muller), 68, of Weston, Florida, were charged in a five-count indictment returned in the Southern District of Texas on Feb. 21, and unsealed today.  Pinto and Muller made their initial appearances today before U.S. Magistrate Judge Jonathan Goodman of the Southern District of Florida.  Pinto and Muller are each charged with one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA), one count of conspiracy to commit wire fraud, two counts of wire fraud, and one count of conspiracy to launder money.

The indictment alleges that beginning in or around 2009 and continuing through at least 2013, Pinto, a sales representative for a Miami-based PDVSA supplier (“Company A” in the indictment), and Muller, the President of Company A, conspired with others to bribe three PDVSA officials in exchange for providing assistance in connection with Company A’s PDVSA business.  According to the indictment, in exchange for bribe payments the PDVSA officials allegedly assisted Company A in obtaining additional PDVSA contracts, inside information and payment on past due invoices.  The indictment alleges that when Company A received a payment from PDVSA, Pinto would alert one of the PDVSA officials who would, in turn, create a fictitious invoice from a Panamanian shell company charging Company A three percent of whatever payment Company A had received from PDVSA and directing Company A to send payment to a Swiss bank account.  According to the charges, the false invoice would be sent to Muller, who would ensure that the invoices were paid. 

The wire fraud charges against Pinto and Muller are based on allegations that, in addition to directing Company A money to the three PDVSA officials to benefit Company A, Pinto and Muller received kickbacks in connection with the scheme.  In total, Pinto is alleged to have received over $985,000 in kickback payments, and Muller over $258,000. 

Two of the three officials that Pinto and Muller are accused of bribing – Jose Camacho and Ivan Guedez, both of Houston – have already pleaded guilty in connection with the case and are pending sentencing. 

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

With the unsealing of the indictment today, the Justice Department has announced charges against 21 individuals, 15 of whom have pleaded guilty, as part of a larger, ongoing investigation by the U.S. government into bribery at PDVSA.  HSI Houston is conducting the ongoing investigation with assistance from HSI Boston and Miami.  Trial Attorneys Sarah E. Edwards and Sonali D. Patel of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys John P. Pearson and Robert S. Johnson of the Southern District of Texas are prosecuting the case.  Assistant U.S. Attorney Kristine Rollison of the Southern District of Texas is handling the forfeiture aspects of the case. 

The Criminal Division’s Office of International Affairs, the Swiss Federal Office of Justice, and the Cayman Mutual Legal Assistance Authority and Cayman Office of the Director of Public Prosecution also provided assistance. 

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

HOUSTON - A former sales representative and the president of a U.S.-based company surrendered to federal authorities yesterday for their alleged roles in a scheme to corruptly secure business advantages from Venezuela’s state-owned and state-controlled energy company, Petroleos de Venezuela S.A. (PDVSA). These business advantages included contract awards and payment on past due invoices.

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

Rafael Enrique Pinto Franceschi (Pinto), 40, of Miami, Florida, and Franz Herman Muller Huber (Muller), 68, of Weston, Florida, were arrested in Miami on arrest warrants based on a five-count indictment returned in the Southern District of Texas (SDTX) on Feb. 21, and unsealed today. Pinto and Muller made their initial appearances today before U.S. Magistrate Judge Jonathan Goodman of the Southern District of Florida. Pinto and Muller are each charged with one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA), one count of conspiracy to commit wire fraud, two counts of wire fraud and one count of conspiracy to launder money.

According to the indictment, Pinto was a sales representative for a Miami-based PDVSA supplier (“Company A” in the indictment), while Muller was Company A’s president. The indictment alleges that beginning in or around 2009 and continuing through at least 2013, Pinto and Muller conspired with others to bribe three PDVSA officials in exchange for providing assistance in connection with Company A’s PDVSA business. In exchange for bribe payments, the PDVSA officials allegedly assisted Company A in obtaining additional PDVSA contracts, inside information and payment on past due invoices. The indictment alleges that when Company A received a payment from PDVSA, Pinto would alert one of the PDVSA officials who would, in turn, create a fictitious invoice from a Panamanian shell company. The invoices charged Company A three percent of whatever payment Company A had received from PDVSA and directed Company A to send payment to a Swiss bank account. According to the charges, the false invoice would be sent to Muller, who would ensure that the invoices were paid. 

The wire fraud charges against Pinto and Muller are based on allegations that, in addition to bribing the three PDVSA officials, Pinto and Muller received kickbacks in connection with the scheme. In total, Pinto is alleged to have received more than $985,000 in kickback payments and Muller over $258,000. 

Two of the three officials that Pinto and Muller are accused of bribing – Jose Camacho and Ivan Guedez, both of Houston - have already pleaded guilty in connection with the case and are pending sentencing.

With the unsealing of the indictment today, the Justice Department has announced charges against 21 individuals, 15 of whom have pleaded guilty, as part of a larger, ongoing U.S. government investigation into bribery at PDVSA. HSI Houston is conducting the ongoing investigation with assistance from HSI Boston and Miami. SDTX Assistant U.S. Attorneys (AUSA) John P. Pearson and Robert S. Johnson and Trial Attorneys Sarah E. Edwards and Sonali D. Patel of the Criminal Division’s Fraud Section are prosecuting the case. AUSA Kristine Rollison of the SDTX is handling the forfeiture aspects of the case. 

The Criminal Division’s Office of International Affairs, the Swiss Federal Office of Justice, Cayman Mutual Legal Assistance Authority and Cayman Office of the Director of Public Prosecution also provided assistance. 

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

HOUSTON – Anyone that knowingly removes, conceals or withholds a part of a civil aircraft involved in an accident could face civil penalties, criminal charges or both, announced U.S. Attorney Ryan K. Patrick.

According to the National Transportation Safety Board (NTSB), Atlas Air Flight 3591 left Miami at 11:30 a.m. Eastern time Saturday, Feb. 23, bound for Houston. At approximately 12:40 p.m., the twin-engine Boeing 767 cargo jetliner crashed into Trinity Bay near Anahuac.

The FBI has urged anyone with information, photos or videos regarding the incident or with knowledge of debris from the crash to call 1-800-CALL-FBI.

“It should be obvious to everyone, but do not pick up or remove pieces of the wreckage. It can interfere with the investigation and could lead to criminal charges,” said Patrick. “If you do come across debris on your property, please contact the FBI. Additionally, the NTSB and FBI have asked that area residents and businesses check security cameras for possible video of the crash.”

It is a federal crime to withhold part of a civil aircraft involved in an accident. If convicted of knowingly and without authority removing, concealing or withholding a part of such an aircraft, or property on the aircraft at the time of the accident could face up to 10 years in prison, if convicted. The charge could also carry a fine of up to $250,000.

The NTSB is leading the investigation with cooperation and assistance from FBI, Texas Parks and Wildlife, Texas Department of Public Safety, sheriff’s offices in Chambers and Harris Counties and the Houston Police Department, among others.

VICTORIA, Texas - Two members of a prolific transnational, transgenerational drug trafficking organization have pleaded guilty as their trial was set to begin in Victoria federal court, announced U.S. Attorney Ryan K. Patrick. Raul Beltran Jr., 50, and his son Edward Beltran, 24, both of Rio Grande City, pleaded guilty today as they were set to begin trial before U.S. District Judge John Rainey.

The Beltran men admitted to massive amounts of drug smuggling - thousands of kilograms of marijuana. 

The investigation began in January 2013 after a Victoria County Sheriff’s Office deputy interdicted approximately 600 pounds of marijuana concealed in a horse trailer. The trailer also contained two racehorses.

That event prompted a lengthy, multiple-agency, multi-jurisdictional investigation that would ultimately uncover information and evidence demonstrating the illegal activities of the Beltran drug trafficking organization. The Beltrans used their horse ranches in Rio Grande City to receive, repackage and conceal thousands of kilograms of marijuana in horse trailers, flat-bed trailers and tractor trailers to ship the marijuana to all points north. They used the sport of horse racing to facilitate drug smuggling and to launder illicit proceeds.

The organization also utilized violence, intimidation, bribery and public corruption to facilitate and perpetuate their illicit activities for nearly a decade with virtual impunity. The investigation demonstrated the organization’s dealings with ranking members of the Gulf and Zeta Cartels, Starr County Chicano Brotherhood, as well as the involvement of multiple corrupt sworn peace officers assigned in the Rio Grande Valley.

A total of 22 people have now been convicted as a result of this investigation, including a former Starr County Sheriff’s Office deputy. In addition, authorities have seized three horse ranches as well as an American Quarter Horse race stallion named Jet Black Patriot and his breeding proceeds and awards. 

The Beltran men were permitted to remain on bond pending their sentencing hearing, set for June 3, 2019. At that time, they each face up to life in federal prison and a possible $10 million maximum fine.

Immigration and Customs Enforcement’s Homeland Security Investigations, Texas Attorney General’s Office and the Victoria County Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Patti Hubert Booth is prosecuting the case. 

HOUSTON – A federal jury has convicted a 50-year-old internal medicine doctor and 47-year-old hospital owner of conspiracy to commit health care fraud, 17 counts of health care fraud and three counts of money laundering, announced U.S. Attorney Ryan K. Patrick and Assistant Attorney General Brian A. Benczkowski of the Department of Justice’s Criminal Division. The jury deliberated for less than four hours following a two-week trial before convicting Dr. Harcharan Narang and Dayakar Moparty.

Narang, a doctor who owned and practiced at North Cypress Clinical Associates, and Dayakar Moparty, who managed and operated Red Oak Hospital, conspired to commit health care fraud. During trial, the jury heard evidence that Narang and Moparty unlawfully enriched themselves by submitting false and fraudulent claims for medical tests that were not medically necessary, not provided or both and then billed at Red Oak Hospital at a higher reimbursement rate.

Additionally, Narang and his co-conspirators falsified home health patient assessment form documents to make the beneficiaries appear sicker on paper to receive higher reimbursement rates from health care benefit programs such as Blue Cross Blue Shield, Cigna and Aetna. Moparty also also instructed his employees to falsely bill the medical services at Red Oak Hospital and other entities associated with Moparty, when in fact, the patients never received services from Red Oak and the other entities.

At trial, patients consistently testified that they had merely but a Groupon for weight loss shots. However, after meeting with Narang, they all received the same battery of medical tests that were not needed or provided. Health care benefit programs paid Red Oak Hospital approximately $3.2 million. Moparty then covertly paid Narang approximately $3 million to various corporate entities Narang owned.

Narang and MoParty’s co-conspirator, Dr. Gurnaib Sidhu, 67, of Houston, had previously pleaded to conspiracy to commit to health care fraud and is awaiting sentencing.

Narang and Moparty face up 10 years in federal prison for each count of health care fraud and up to 20 years for each count of money laundering. Narang and Moparty were permitted to remain on bond with an ankle monitor pending their sentencing hearing, set for June 20, 2019, before U.S. District Judge Sim Lake.

The FBI and Office of Personnel Management – Office of Inspector General conducted the investigation. Assistant U.S. Attorney Tina Ansari and Trial Attorney Drew Pennebaker are prosecuting the case.

A federal jury found an internal medicine doctor and hospital owner guilty today for their roles in a multimillion health care fraud scheme, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Ryan K. Patrick of the Southern District of Texas.

Following a two-week trial, Harcharan Narang, 50, of Houston, Texas, and Dayakar Moparty, 47, of Houston, Texas,were found guilty of one count of conspiracy to commit health care fraud, 17 counts of health care fraud and three counts of money laundering.  Sentencing is set for June 20, before U.S. District Judge Sim Lake of the Southern District of Texas, who presided over the trial.

Narang is a physician who owned and practiced at North Cypress Clinical Associates in Cypress, Texas.  Moparty managed and operated Red Oak Hospital (Red Oak) in Houston, Texas.  During the trial, evidence was admitted showing that Narang and Moparty unlawfully enriched themselves by submitting false and fraudulent claims for medical tests that were not medically necessary and/or not provided and then billed at Red Oak Hospital at a higher reimbursement rate.

Additionally, Narang and his co-conspirators falsified diagnostic referral forms to make the beneficiaries appear sicker on paper than they actually were, to receive higher reimbursement rates from health care benefit programs such as Blue Cross Blue Shield, Cigna and Aetna, the evidence showed.  Moparty also instructed his employees to falsely bill the medical services at Red Oak and other entities associated with Moparty, when in fact the patients never received services at Red Oak and the other entities.

At trial, patients testified that they had merely bought a Groupon for weight loss shots, but after meeting with Narang, they all received the same battery of medical tests that were not needed or provided.  According to the trial evidence, health care benefit programs paid Red Oak approximately at least $3.2 million, and Moparty then covertly paid Narang approximately $3 million dollars to various corporate entities owned by Narang.

Narang and Moparty’s co-conspirator, Gurnaib Sidhu, M.D., 67, of Houston, previously pleaded to conspiracy to commit health care fraud and is awaiting sentencing.    

The investigation was conducted by the FBI and the U.S. Office of Personnel Management Office of Inspector General.  Trial Attorney Drew Pennebaker of the Criminal Division’s Fraud Section  and Assistant U.S. Attorney Tina Ansari of the Southern District of Texas are prosecuting the case.

The Fraud Section leads the Medicare Fraud Strike Force.  Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion.

GALVESTON, Texas - A 33-year-old resident of Sweeny has admitted he employed sexually-oriented websites advertising three minors as young as 15 for commercial sex, announced U.S. Attorney Ryan K. Patrick.

Joseph Church pleaded guilty today on the first day trial was set to begin before U.S. District Judge George C. Hanks Jr.  

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

Church, the leader of the group, was the last of seven to plead guilty in this case. 

Several others have pleaded guilty for their respective roles on the conspiracy, gun charges, and the posting of the commercial sex ads - Angela Marks, 25, of Sweeny; Jamaal Crane, 26, of Angleton; Norris Moon, 25, and Christopher Walton, 24, both of Brazoria; Alisa Kimbler, 26, of Freeport; and Eric Page, 20 of Sherman.

Church has been detained since his arrest and will remain in custody until his sentencing scheduled for May 15,2019. 

Church faces at least 10 years and up to life in prison. Potentially, he could also be ordered to pay a $250,000 fine and serve at least five years and up to life on supervised release. He will be required to register as a sex offender. 

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

McALLEN, Texas – A 50-year old resident of Hidalgo has been charged with bulk cash smuggling, announced U.S. Attorney Ryan K. Patrick.

A federal grand jury has returned an indictment against legal permanent resident Alberto Hernandez Gallegos Feb. 12, 2019. He was originally charged by criminal complaint Jan. 26, 2019, and has remained in custody since that time. He is expected to make his appearance on the indictment before U.S. Magistrate Judge Juan Alanis at 8:30 a.m. today.

The indictment alleges that on Jan. 25, 2019, Gallegos attempted to exit the United States via vehicle at the Hidalgo Port of Entry. Customs and Border Protections Officers (CBP) conducted an outbound inspection which allegedly led to the discovery of approximately $1,081,375.00 in bulk U.S. currency concealed in a speaker box in the trunk of the vehicle.

The charges allege Gallegos was aware of the currency in the vehicle but not the total amount. He allegedly planned to smuggle the currency for others in return for $1000.

It is not a crime to carry more than $10,000, but it is a federal offense not to declare currency or monetary instruments totaling $10,000 or more to a CBP officer upon entry or exit from the U.S. or to conceal it with intent to evade reporting requirements.

If convicted, Gallegos faces up to five years in federal prison along with a possible $250,000 fine. Gallegos could also lose his status as an LPR.

Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation along with CBP. Assistant U.S. Attorney Andrew Henning 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.

The Justice Department today filed a federal civil rights lawsuit against TFT Galveston Portfolio LTD (Galveston Portfolio), the owners of the Seasons Resort, an apartment complex located in Galveston, Texas, as well as against James W. Gartrell Jr., a licensed engineer whose primary place of business is Texas City, Texas. The lawsuit alleges that defendants Galveston Portfolio and Gartrell failed to design and construct an eight-building addition and associated rental office at the Seasons Resort to make them accessible to persons with disabilities in compliance with the Fair Housing Act (FHA) accessibility requirements and the Americans with Disabilities Act (ADA).

“The Department of Justice is committed to eliminating disability-based discrimination in housing,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “This lawsuit is the latest step in the Department of Justice’s efforts to ensure equal accessibility for persons with disabilities, including making multifamily housing FHA compliant.”   

“The United States Attorney’s Office is committed to working with the Civil Rights Division in enforcing the Fair Housing Act and the Americans with Disabilities Act,” said U.S. Attorney Ryan K. Patrick. “We are fully devoted to protecting the rights of persons with disabilities in the Southern District of Texas.”

The suit, filed in U.S. District Court in Galveston, Texas, alleges that the eight-building addition and rental office designed and built by the defendants have significant accessibility barriers that inhibit access to the 24 ground-floor units and the associated public and common-use areas at the property.  Those barriers include: multiple steps on walkways throughout the property; multiple steps leading to ground-floor unit entrances; barriers at property amenities such as the mail centers, the pool, the rent drop box at the rental office, and the trash dumpster; inaccessible parking, bathrooms, kitchens, thermostats and electrical outlets; and door knobs at all unit entrances that make those entrances inaccessible to many people with disabilities.

The lawsuit arises from a complaint by a former tenant with physical disabilities who was compelled to move from the property because she could not get from her apartment to the parking area unassisted.

The lawsuit seeks a court order prohibiting the defendants from designing or constructing future residential properties in a manner that discriminates against persons with disabilities. The lawsuit also seeks an order requiring the defendants to bring the portions of the Seasons Resort that they have designed and constructed since 1991 into compliance with the FHA and the ADA, as well as monetary damages for persons harmed by the lack of accessibility. 

The Justice Department, through the U.S. Attorney’s Offices and the Civil Rights Division, enforces the FHA, which prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status.  Among other things, the FHA requires all multifamily housing constructed after March 12, 1991, to have basic accessibility features, including accessible routes without steps to all ground-floor units.  The full and fair enforcement of the ADA and its mandate to integrate individuals with disabilities is a major priority of the Civil Rights Division. The ADA protects individuals with disabilities from discrimination in public accommodations, including the rental office at issue in this case.    

More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt.  Individuals who believe that they may have been victims of housing discrimination can call the Justice Department at 1-800-896-7743, email the Justice Department at fairhousing@usdoj.gov, or contact HUD at 1-800-669-9777, or through its website at https://www.hud.gov/program_offices/fair_housing_equal_opp.

The complaint is an allegation of unlawful conduct.  The allegations in the complaint must still be proven in court.

GALVESTON, Texas - The Justice Department has filed a federal civil rights lawsuit against TFT Galveston Portfolio LTD (Galveston Portfolio), the owners of the Seasons Resort, an apartment complex located in Galveston as well as against James W. Gartrell Jr., a licensed engineer whose primary place of business is Texas City. The lawsuit alleges Galveston Portfolio and Gartrell failed to design and construct an eight-building addition and associated rental office at the Seasons Resort to make them accessible to persons with disabilities in compliance with the Fair Housing Act (FHA) accessibility requirements and the Americans with Disabilities Act (ADA).

“The Department of Justice is committed to eliminating disability-based discrimination in housing,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “This lawsuit is the latest step in the Department of Justice’s efforts to ensure equal accessibility for persons with disabilities, including making multifamily housing FHA compliant.”   

“The United States Attorney’s Office is committed to working with the Civil Rights Division in enforcing the Fair Housing Act and the Americans with Disabilities Act,” said U.S. Attorney Ryan K. Patrick. “We are fully devoted to protecting the rights of persons with disabilities in the Southern District of Texas.”

The suit, filed in U.S. District Court in Galveston, alleges the eight-building addition and rental office designed and built by the defendants have significant accessibility barriers that inhibit access to the 24 ground-floor units and the associated public and common-use areas at the property.  Those barriers include multiple steps on walkways throughout the property; multiple steps leading to ground-floor unit entrance; barriers at property amenities such as mail centers, pool, rent drop box at the rental office and the trash dumpster; inaccessible parking, bathrooms, kitchens, thermostats and electrical outlets; and door knobs at all unit entrances that make those entrances inaccessible to many people with disabilities.

The lawsuit arises from a complaint by a former tenant with physical disabilities who was compelled to move from the property because she could not get from her apartment to the parking area unassisted.

The lawsuit seeks a court order prohibiting the defendants from designing or constructing future residential properties in a manner that discriminates against persons with disabilities. The lawsuit also seeks an order requiring the defendants to bring the portions of the Seasons Resort that they have designed and constructed since 1991 into compliance with the FHA and the ADA, as well as monetary damages for persons harmed by the lack of accessibility. 

The Justice Department, through the U.S. Attorney’s Offices and the Civil Rights Division, enforces the FHA, which prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status.  Among other things, the FHA requires all multifamily housing constructed after March 12, 1991, to have basic accessibility features, including accessible routes without steps to all ground-floor units.  The full and fair enforcement of the ADA and its mandate to integrate individuals with disabilities is a major priority of the Civil Rights Division. The ADA protects individuals with disabilities from discrimination in public accommodations, including the rental office at issue in this case.    

More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt.  Individuals who believe that they may have been victims of housing discrimination can call the Justice Department at 1-800-896-7743, email the Justice Department at fairhousing@usdoj.gov, or contact HUD at 1-800-669-9777, or through its website at https://www.hud.gov/program_offices/fair_housing_equal_opp.

The complaint is an allegation of unlawful conduct.  The allegations in the complaint must still be proven in court.

CORPUS CHRISTI, Texas - A 26-year-old undocumented alien from Guatemala has admitted he assaulted a Border Patrol (BP) agent and illegally entered the country, announced U.S. Attorney Ryan K. Patrick.

Edison Sory Velasquez-Velasquez entered a guilty plea today before U.S. Magistrate Judge Jason B. Libby.

On Dec. 18, 2018, a group of illegal aliens were spotted walking on the east side of highway 281 on the Viboras Pasture in the King Ranch in Encino. BP tracked the group, but as they closed in, the aliens began to run in all directions. 

As one of the agents was apprehending two of the illegal aliens, Velasquez-Velasquez appeared from a thick group of trees. The agent grabbed him and gave commands to stop and get on the ground. Velasquez-Velasquez turned on the agent and swung a plastic bag that contained canned foods and hit the agent in the face.

Velasquez-Velasquez continued to run, was given verbal commands to stop, but refused. The injured agent was able to catch up to him and attempted to subdue him. Velasquez-Velasquez continued to resist and swung at the agent again. The agent was able to evade the second attack and gained control and arrested Velasquez-Velasquez. 

In total, agents arrested eight illegal aliens, all of whom were transported to the Falfurrias BP Checkpoint for processing.  

U.S. District Judge Nelva Gonzales Ramos will impose sentencing May 16, 2019. At that time, Velasquez-Velasquez faces up to eight years imprisonment and a maximum $250,000 fine. 

He has been and will remain in federal custody pending the sentencing hearing.

BP and the FBI conducted the investigation. Assistant U.S. Attorney Cody Barnes is prosecuting the case. 

HOUSTON – A 30-year-old resident of Conroe has been sentenced to federal prison for possessing and selling homemade machine guns, announced U.S. Attorney Ryan K. Patrick. Michael Lee Price pleaded guilty Oct. 5, 2018, admitting he illegally possessed machine guns, possessed unregistered machine guns and engaged in the business of selling firearms without a license. 

Today, U.S. District Judge Ewing Werlein Jr. ordered price to serve a total of 37 months in prison to be immediately followed by three years of supervised release. In handing down the sentence, the court noted the seriousness of his crime in making fully automatic machine guns and selling to criminal elements given the amount of death and destruction they can cause. 

From June 18, 2018, to July 17, 2018, Price negotiated with an undercover officer to sell fully automatic M-16 style machine guns that he made from gun parts he bought online. The evidence showed Price was in the business of purchasing the gun parts to construct an M-16 style rifle then used his own machinery and templates to make the rifles fully automatic machine guns.

Such machine guns are known as “ghost guns” because they have no identifying information and are hard to trace.

Price sold a total of 14 fully automatic machine guns to the undercover officer.  Authorities seized all of the machine guns and confirmed to be fully-automatic machine guns.

Price 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 conducted the investigation. Assistant U.S. Attorney Richard Bennett prosecuted the case.

BROWNSVILLE, Texas – A 63-year-old resident of Dallas has been ordered to federal prison following his multiple convictions related to his sexual conduct with a minor in foreign places, announced. U.S. Attorney Ryan Patrick.

Donald Frederic Bollinger pleaded guilty June 13, 2018, to engaging in illicit sexual conduct in foreign places with an individual less than 18 years of age, transportation of a minor with intent to engage in criminal sexual activity, coercion and enticement of a minor to travel in interstate and foreign commerce to engage in illicit sexual activity and travel in foreign commerce as well as engaging in illicit sexual activity with a minor.

Today, U.S. District Judge Rolando Olvera Jr. sentenced Bollinger to 121 months for his crimes. Bollinger was further ordered to pay a $30,000 fine and special assessments of $100 per count of conviction as well as $30,000 pursuant to the 2015 Justice for Victims Trafficking Act of 2015. Following the completion of his prison term, Bollinger will serve the rest of his life on supervised release during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. Bollinger will also be ordered to register as a sex offender.

In July 2016, a minor had crossed into the U.S. illegally and reported continuous sexual abuse that took place in Honduras and Mexico at the hands of Bollinger, a registered sex offender. The investigation led the agents to two other Honduran minors, also in the United States, that Bollinger victimized in Honduras.

The investigation revealed flight records, credit card information and money order records showing that Bollinger traveled to Honduras consistently for a period of two years from 2012 to 2014. The investigation demonstrated that Bollinger traveled to Reynosa, Mexico, and stayed at a hotel in the area at the end of March 2016 which corroborated one of the victim’s statements. Bollinger maintained a sexual relationship with the minors throughout this time period.

He was arrested Sept. 21, 2017, at the Hidalgo International Port of Entry in McAllen. 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 Brownsville - Rio Grande Valley Child Exploitation Task Force conducted the investigation.

Assistant U.S. Attorneys Ana C. Cano and Jason Corley 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 Projects Safe Childhood, please visit www.usdoj.gov/psc.

HOUSTON - A 40-year-old resident of Atlanta, Georgia, resident has been sentenced to prison for conspiracy to commit wire fraud, announced U.S. Attorney Ryan K. Patrick. Derrick Ervin pleaded guilty Nov. 19, 2018.

Today, U.S. District Judge Lynn N. Hughes sentenced Ervin to 77 months in federal prison to be immediately followed by three years of supervised release. He was also ordered to pay restitution in the amount of $998,188.50. In handing down the sentence, the court noted that the prison term would give Ervin the chance to live Also, Judge Hughes stated, “Prison will give you the opportunity to live “without temptation.”

At the time of his guilty plea, Ervin admitted that in March 2018, conspirators sent fraudulent emails to the City of Bryan posing as the city’s vendors. In them, conspirators directed the city to send money to what were purportedly the vendors’ “new” bank accounts.

In reality, however, the conspirators controlled those accounts.

Three payments were sent, totaling $779,807.50.

Ervin participated in the conspiracy by opening a bank account under a stolen identity to receive much of the stolen money and distributing it amongst the conspirators. 

As part of his guilty plea, Ervin also admitted to participating in other frauds including receiving at least $50,000 in October 2017 as part of a romance fraud scheme, as well as more than $90,000 as part of a business email compromise. 

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

The FBI and the Bryan Police Department jointly conducted the investigation. Assistant U.S. Attorney Michael Chu prosecuted the case.

HOUSTON – A 34-year-old Katy man has been ordered to prison after discharging a firearm in the hallway of an apartment building while conducting a drug trafficking offense resulting in the death of the buyer, announced U.S. Attorney Ryan K. Patrick. James Michael Curtis Johnson pleaded guilty Feb. 6, 2017, to discharging a firearm as well as aggravated identity theft as part of a separate fraud scheme.

Today, U.S. District Judge Lynn N. Hughes handed Johnson a 120-month sentence for the firearms charge plus a mandatory and consecutive 24 months for identity theft. The total 144-month prison term will be immediately followed by three years of supervised release. At the hearing, Judge Hughes noted Johnson had a  gun to perpetuate your drug deal. “That’s not self-defense,” he said. That’s defending your wrong.” He also addressed Johnson’s family. “I want y’all to love him, but don’t make excuses for him.” Hughes commented. “He knew what he was doing.”

At the time of his guilty plea, Johnson admitted that on Oct. 1, 2014, he and a friend received a request to sell narcotics at an apartment building on the 2600 block of Woodland Park in Houston. Johnson was worried that something might go wrong at the drug sale meeting, so he also brought a pistol, checking before he left to ensure it was loaded.   

During the sale, an altercation arose in the hallway and one of the buyers drew a gun. Johnson ducked, drew his own pistol, fired several rounds at the buyer with the gun and fled. Authorities arrived on scene and discovered the hallway pockmarked with bullets, a partially-opened box of narcotics and a trail of blood leading to the body of the victim who was deceased.

For his participation in a conspiracy to steal money from online bank accounts, Johnson was also convicted of aggravated identity theft. In that case, Johnson and his co-conspirators possessed and unlawfully used the identification of two victims to fraudulently induce their bank to send blank checks to the conspirators. As part of this conspiracy, the conspirators wrote a fraudulent check for $91,256.73 and deposited it at BBVA Compass Bank in Houston. They withdrew the money before the bank could stop the payment.

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

The FBI’s Houston Area Cyber Task Force, IRS-Criminal Investigation and Houston Police Department conducted the investigation. Assistant U.S. Attorney Michael Chu prosecuted the case.

ORPUS CHRISTI, Texas – A 23-year-old legal permanent resident of Katy has been convicted of transporting illegal aliens, announced U.S. Attorney Ryan K. Patrick.

On Dec. 10, 2018, Yabar Ayan Portes-Arevalo approached the primary inspection lane of the Border Patrol (BP) checkpoint near Sarita. He was driving a Ford F-150 pickup with a couch and dresser loaded in the bed of the truck wrapped in plastic. During a routine inspection, Portes-Arevalo became visibly nervous, at which time BP conducted an x-ray examination of the vehicle which showed abnormalities inside the furniture. 

BP agents removed the plastic and discovered three undocumented aliens hidden in the couch and three more inside the dresser. The dresser had been nailed shut. 

Porters-Arevalo entered a guilty plea today to transporting illegal aliens within the United States. Sentencing has been set for  May 20, 2019, before Senior U.S. District Judge John Rainey. At that time, Portes-Arevalo faces up to five years imprisonment and a $250,000 maximum possible fine. He could also lose his status as a legal permanent resident.

He was permitted to remain on bond pending that hearing.

BP conducted the investigation. Assistant U.S. Attorney Cody Barnes is prosecuting the case.

A Beijing, China man was sentenced today to 54 months in federal prison for directing the shipment of counterfeit computer-networking equipment into the Southern District of Texas.

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

Ruiyang Li, 40, was sentenced today to serve 54 months in federal prison by U.S. District Judge Ewing Werlein Jr.  The court reserved the determination of restitution to the victims of Li’s trademark counterfeiting—including Cisco Systems Inc., The Hewlett-Packard Company and Intel Corporation—until a later date.  Because Li is not a U.S. citizen, he is expected to be deported after serving his prison sentence.

From at least 2007 until in or about June 2017, Li directed the shipment of counterfeit computer-networking equipment into the Southern District of Texas, first when selling to a retailer in Magnolia, Texas, and eventually when selling to law enforcement acting in an undercover capacity.  Over this time period, Li sold counterfeit networking products through several business entities, often hiding behind layers of personal and corporate aliases to evade detection by law enforcement.  Li also used various means to conceal his unlawful conduct, including by sending and receiving payments using accounts that did not appear connected, at least publicly, to companies trafficking in illicit products.  Li and his customers would also agree to mislabel packages, break up shipments into separate components, alter destination addresses and use multiple forwarding companies based in the United States.  These methods, in Li’s mind, made shipping counterfeit parts “safer,” which in practice meant delaying or complicating detection by U.S. authorities.

State and local governments rely on complex computer networking technology, including the transceivers and other parts that were trafficked in this case, to manage critical data and operations.  This same technology is also prominent in banks, hospitals, air traffic control installations, power plants and other essential infrastructure.  Because counterfeit parts are often not subject to stringent manufacturing requirements, they present a significant health and safety risk to communities across the United States.  

The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, with significant assistance from U.S. Customs and Border Protection.  The case was prosecuted by Senior Trial Attorney Timothy C. Flowers of the Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Jay Hileman.

HOUSTON – A Beijing, China, man was sentenced to federal prison today for directing the shipment of counterfeit computer-networking equipment into the Southern District of Texas.

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

U.S. District Judge Ewing Werlein Jr. sentenced Ruiyang Li, 40, to serve 54 months in federal prison. The court reserved the determination of restitution to the victims of Li’s trademark counterfeiting—including Cisco Systems Inc., The Hewlett-Packard Company and Intel Corporation—until a later date. Because Li is not a U.S. citizen, he is expected to face deportation proceedings after serving his prison sentence.

From at least 2007 until in or about June 2017, Li directed the shipment of counterfeit computer-networking equipment into the Southern District of Texas, first when selling to a retailer in Magnolia and eventually when selling to law enforcement acting in an undercover capacity. Over this time period, Li sold counterfeit networking products through several business entities, often hiding behind layers of personal and corporate aliases to evade law enforcement detection. Li also used various means to conceal his unlawful conduct, including by sending and receiving payments using accounts that did not appear connected, at least publicly, to companies trafficking in illicit products. Li and his customers would also agree to mislabel packages, break up shipments into separate components, alter destination addresses and use multiple forwarding companies based in the United States. These methods, in Li’s mind, made shipping counterfeit parts “safer,” which in practice meant delaying or complicating detection by U.S. authorities.

State and local governments rely on complex computer networking technology, including the transceivers and other parts that were trafficked in this case, to manage critical data and operations. This same technology is also prominent in banks, hospitals, air traffic control installations, power plants and other essential infrastructure. Because counterfeit parts are often not subject to stringent manufacturing requirements, they present a significant health and safety risk to communities across the United States.  

Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with significant assistance from Customs and Border Protection. Assistant U.S. Attorney Jay Hileman and Senior Trial Attorney Timothy C. Flowers of the Computer Crime and Intellectual Property Section prosecuted the case.

HOUSTON - A man who had owned Stat Source, Inc., has been ordered to prison for willfully failed to truthfully account for and pay over employment taxes to the IRS, announced U.S. Attorney Ryan K. Patrick along with Special Agent in Charge D. Richard Goss of IRS - Criminal Investigation (CI). Jonathan Adam Van Pelt pleaded guilty Nov. 8, 2018.

Today, U.S. District Judge Alfred H. Bennett handed Van Pelt a 30-month sentence to be immediately followed by three years of supervised release. Judge Bennett also ordered Van Pelt to pay restitution to the United States of more than $20 million. 

In handing down its sentence, Judge Bennett noted many factors to include Van Pelt’s medical condition as well as the size of the tax loss and the fact that Van Pelt knew he had a degenerative disease prior to commission of his crime. 

In the plea agreement filed in the record of the case, Van Pelt admitted the total employment taxes he failed to pay to the IRS for Stat Source Inc., was more than $20 million, the amount owed for 18 employment tax quarters running from the third quarter of 2011 through the fourth quarter of 2015. Van Pelt also admitted he spent the money owed on the unpaid employment taxes on various luxury items, such as luxury automobiles, expensive furniture, leather goods, jewelry, an expensive home, lavish vacations and various entertainment venues. 

Judge Bennett allowed Van Pelt to remain on bond pending his voluntary surrender to a U.S. Bureau of Prisons facility to be determined in the near future.

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

CORPUS CHRISTI, Texas - A 38-year-old Mexican national has been sentenced to federal prison following his conviction of illegal re-entry into the United States after deportation, announced U.S. Attorney Ryan K. Patrick. Isidro Rodriguez-Toscano pleaded guilty Oct. 23, 2018. 

“We must have secure borders,” said Patrick. “Foreign nationals previously deported or that have a criminal history are not permitted entry into our country. We have been and will continue to be a leader in prosecuting these types of cases and thank our hard-working law enforcement partners who bring illegal re-entry cases to us for prosecution.

At the hearing today, U.S. District Judge Hilda G. Tagle ordered Rodriguez-Toscano to prison for 46 months in federal prison. The court heard evidence of his convictions for aggravated robbery, felony theft and assault. He was also previously convicted for the same offense - illegal re-entry - in December 2009 and was sentenced to 70 months, later deported and not permitted to return to the United States.  

However, in August 2018, A Texas Department of Public Safety (DPS) trooper had conducted a traffic stop for a defective taillight near Riviera. Rodriguez-Toscano was the driver of that vehicle and determined to be illegally present in the country.

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

A federal jury in Laredo, Texas found four men and two women guilty for their roles in a two-year multi-million dollar black market peso exchange money-laundering scheme, the Justice Department announced.

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 Will R. Glaspy of the U.S. Drug Enforcement Administration (DEA) and Special Agent in Charge D. Richard Goss of the IRS Criminal Investigation (IRS-CI) made the announcement.

Adrian Arciniega-Hernandez, 36, of Nuevo Laredo, Mexico; Adriana Alejandra Galvan-Constantini, 36, and Luis Montes-Patino, 57, both of Irving, Texas, and Ravinder Reddy Gudipati, 61; Harsh Jaggi, 54; and Neeru Jaggi, 51, all of Laredo, Texas, were each convicted of a money laundering conspiracy following a five-week jury trial.  In addition, Harsh Jaggi and Adrian Arcinieg-Hernandez were each convicted of two counts of money laundering and Neeru Jaggi was convicted of one count of money laundering.  Gudipati was convicted of two counts of money laundering, two counts of causing a trade or business to fail to file a Form 8300, and one count of causing a trade or business to file a Form 8300 containing a material omission and misstatement of facts. Arciniega-Hernandez was found not guilty of a third count of money laundering.  Sentencing before U.S. District Judge Marina Garcia Marmalejo of the Southern District of Texas, Laredo Division, who presided over the trial, has not yet been scheduled.

Arciniega-Hernandez, Galvan-Constantini, Montes-Patino, Gudipati, Harsh Jaggi, and Neeru Jaggi were part of a complex money laundering scheme whereby money derived from the sale of drugs in the United States were laundered through businesses in Laredo, in order to return these proceeds to Mexican drug dealers. 

According to the evidence presented at trial, from 2011 through 2013, Galvan-Constantini, Montes-Patino and other co-conspirators helped to move millions of dollars derived from the sale of drugs throughout the United States, including New York, Kentucky, North Carolina, Illinois, Mississippi, and multiple cities in Texas to Laredo, Texas.  The U.S. currency was moved by couriers, including Galvan-Constantini and Montes-Patino, via cars, commercial buses, commercial planes, and a private plane in bulk cash amounts of up to hundreds of thousands of dollars at a time.  The money, in heat sealed packs, uneven rubber-banded money stacks, or loose U.S. currency, arrived in plastic bags, cloth bags, suitcases, backpacks, and even cereal boxes.  The money was then distributed among downtown Laredo, Texas perfume stores, including El Reino International Inc., and NYSA Impex LLC.  The owner of NYSA Impex LLC, Gudipati, and the owners of El Reino International Inc., Harsh Jaggi, and Neeru Jaggi, accepted loose bulk-cash, even after being told it was “narco dinero.”  The store owners also failed to file Form 8300s which are required when more than $10,000 in cash is received by a business, or filed Form 8300s which omitted pertinent information such as the name of the courier who brought the bulk cash.    

Co-defendant Carlos Velasaquez, 55, of Laredo, pleaded guilty to conspiracy to launder money on Nov. 7, 2018, and is pending sentencing. 

This case was investigated by the DEA and IRS-CI.  Trial Attorneys Keith Liddle and Stephanie Williamson of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS) and Assistant U.S. Attorney José Angel Moreno of the Southern District of Texas are prosecuting the case, with the support and assistance of MLARS Trial Attorney Kerry Blackburn.

LAREDO, Texas - A federal jury in Laredo has found four men and two women guilty for their roles in a two-year multi-million dollar money-laundering scheme.

U.S. Attorney Ryan Patrick, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Special Agent in Charge Will R. Glaspy of the Drug Enforcement Administration (DEA) and Special Agent in Charge D. Richard Goss of the IRS - Criminal Investigation (CI) made the announcement.

Adrian Arciniega-Hernandez, of Nuevo Laredo; Adriana Alejandra Galvan-Constantini and Luis Montes-Patino, both of Irving; and Ravinder Reddy Gudipati, Harsh Jaggi and Neeru Jaggi, all of Laredo, were each convicted of a money laundering conspiracy following a five-week jury trial. In addition, Harsh Jaggi and Adrian Arciniega-Hernandez were convicted of two counts of money laundering, while the jury convicted Neeru Jaggi of one count of money laundering. Gudipati was convicted of two counts of money laundering, two counts of causing a trade or business to fail to file a Form 8300 and one count of causing a trade or business to file a Form 8300 containing a material omission and misstatement of facts.

Sentencing before U.S. District Judge Marina Garcia Marmalejo, who presided over the trial, has not yet been scheduled.

Arciniega-Hernandez, Galvan-Constantini, Montes-Patino, Gudipati, Harsh Jaggi and Neeru Jaggi were part of a complex money laundering scheme whereby money derived from the sale of drugs in the United States were laundered through businesses in Laredo in order to return these proceeds to Mexican drug dealers. 

According to the evidence presented at trial, from 2011 through 2013, Galvan-Constantini, Montes-Patino and other co-conspirators helped to move millions of dollars derived from the sale of drugs throughout the United States, including New York, Kentucky, North Carolina, Illinois, Mississippi and multiple cities in Texas to Laredo. Couriers moved the currency, including Galvan-Constantini and Montes-Patino, via cars, commercial buses, commercial planes and a private plane in bulk cash amounts of up to hundreds of thousands of dollars at a time.  The money, in heat sealed packs, uneven rubber-banded money stacks or loose U.S. currency, arrived in plastic bags, cloth bags, suitcases, backpacks and even cereal boxes. The money was then distributed among downtown Laredo perfume stores, including El Reino International Inc., which Harsh and Neeru Jaggi owned, and NYSA Impex LLC, owned by Gudipati. Gudipati, Harsh Jaggi and Neeru Jaggi accepted loose bulk-cash even after being told it was “narco dinero.” 

The store owners also failed to file Form 8300s which are required when a business receives more than $10,000 in cash, or they filed those forms which omitted pertinent information such as the name of the courier who brought the bulk cash.    

Co-defendant Carlos Velasaquez, 55, of Laredo, pleaded guilty to conspiracy to launder money on Nov. 7, 2018, and is pending sentencing. 

DEA and IRS-CI conducted the investigation. Assistant U.S. Attorney José Angel Moreno and Trial Attorneys Keith Liddle and Stephanie Williamson of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS) are prosecuting the case, with the support and assistance of MLARS Trial Attorney Kerry Blackburn.

HOUSTON – The last defendant charged in relation to a more than $40 million securities fraud “pump and dump” conspiracy has now been convicted, announced U.S. Attorney Ryan K. Patrick. With the guilty plea of John David Brotherton, 59, of League City, today, all seven defendants charged in the case now stand convicted.

Andrew Ian Farmer, 40, Thomas Galen Massey, 48, Eddie Douglas Austin Jr., 68, Carolyn Price Austin 64, and Charles Earl Grob, 38, all of Houston, and Scott Russell Sieck, 60, of Winter Park, Florida, all had previously entered pleas of guilty for their respective roles in the case.

Farmer, Massey, Eddie Austin, Brotherton, Sieck and Grob admitted they participated in a conspiracy to commit fraud in microcap securities. During the course of the conspiracy, these six defendants obtained control of the stock of numerous companies, then “pumped up” the price of the stock through false and misleading press releases and fraudulent trading techniques. They then “dumped” their shares of stock onto the market for a significant profit.

As part of her plea agreement, Carolyn Austin admitted she knew of the intended manipulation of the stock prices and acted to conceal this fact from law enforcement.

U.S. District Judge Vanessa D. Gilmore has set Brotherton’s sentencing for June 3, 2019, along with Sieck, Grob and Massey. Eddie and Carolyn Austin are set for June 17, while Farmer will be sentenced June 24. Farmer faces up 10 years in prison, while Carolyn Austin’s conviction carries a possible three-year-term of imprisonment. The remaining defendants face a maximum of five years.

All seven defendants could also be ordered to pay up to a $250,000 fine.

With the exception of Brotherton, who is in now in custody following violations of his conditions of release, the remaining defendants were permitted to remain on bond pending their respective sentencing hearings.

The FBI conducted the investigation with the assistance of the Securities and Exchange Commission and Financial Industry Regulatory Authority. Assistant U.S. Attorneys Justin R. Martin and Michael Chu are prosecuting the case.