Southern District of Texas

McALLEN, Texas – Two additional defendants involved with a rip crew responsible for multiple home invasions and carjackings to steal narcotics in Hidalgo County have been ordered to federal prison, announced U.S. Attorney Ryan K. Patrick. Danny Cano, 31, Mission, pleaded guilty to possessing with the intent to distribute more than 500 grams of cocaine, while Marlyn Gonzalez 39, also of Mission, admitted to conspiring to possess with the intent to distribute more than five kilograms of cocaine.

Today, U.S. District Judge Micaela Alvarez ordered Cano to serve 108 months in prison. Gonzalez received a 50-month-term of imprisonment. Cano and Gonzalez were further ordered to serve four and three years, respectfully, following their prison terms. The court considered the offense and stated that the serious conduct was attributable to greed and a lot of people willing to do anything for money. Judge Alvarez also stated that people in a home and residents in a neighborhood, even those involved in criminal activity themselves, should not be the target of home invasions but rather face justice through the judicial system in place. In particular, the court noted Cano’s involvement in brokering a transaction involving 20 kilograms of cocaine in February 2017 and Gonzalez’s role as a lookout during a February 2016 armed home invasion in Hidalgo involving the theft of more than 10 kilograms of cocaine.

Others who have also pleaded guilty in the conspiracy and are pending sentencing including Antonio Javier Gomez aka “Little T,” 28, Arturo Vargas aka “Petu” or Cholo,” 35, Francisco Javier Montemayor aka “Fat Boy” or “el Fat” or “Rambo,” 31, and Roberto Lee Rodriguez aka “el Tio” or “Pica,”  39, all of Mission; Mexican nationals Miguel Marin Cerda aka “Tigre,” 30, Jose Garcia-De La Torre aka “Coco,” 22, Carlos Guadalupe Aquino-Pacheco aka “Tomy,” 20, Alfredo Avalos-Sanchez aka “Chore,” 26, Gustavo Angel DeLeon-Covarrubias aka “Tripa,” 19, Jose Arturo Reyes-Sanchez aka “Gordo,” 19; and Cesar Alejandro Tovar-Guillen aka “Nucho” or “el Sobrino,” 31; and Juan Antonio Flores, 27, of Weslaco.

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

The FBI Safe Streets Task Force and Drug Enforcement Administration conducted the investigation with the assistance of Border Patrol, Immigrations and Customs Enforcement’s Homeland Security Investigations, Hidalgo County Sheriff’s Office, Texas Department of Public Safety Regional Crime Lab and police departments in McAllen, Pharr, San Juan, Mission and Palmview. Assistant U.S. Attorneys Roberto Lopez Jr. and K. Alejandra Andrade prosecuted the case.

McALLEN, Texas – A former bank employee has been ordered to prison for her admissions of she stealing more than $1 million from customer accounts, announced U.S. Attorney Ryan K. Patrick. Cynthia Luna Rodriguez, 45, pleaded guilty Jan. 31, 2018.

Today, U.S. District Judge Micaela Alvarez handed Rodriguez a 85-month sentence to be immediately followed by three years of supervised release. At the hearing, the court highlighted the extent to which Rodriguez went to conceal her crime, including changing addresses on accounts, getting an address of her own to use, falsifying tax paperwork, falsifying a letter from the bank and adding additional instructions to the account to control access of anyone other than Rodriguez. In handing down the sentence, the court noted the number of victims, the fact that some elderly victims did not have repairs made to their house because of the fraud, the fact that the fraud scheme happened over a number of years and that the victims were people who would trust Rodriguez. The court noted Rodriguez purposefully targeted elderly victims with limited access to the bank.

At the time of her plea, Rodriguez acknowledged she committed two counts of bank fraud and one count of embezzlement that occurred over eight years. Rodriguez admitted to illegally withdrawing money from customers’ accounts and to hiding the unauthorized withdrawals by back-filling the accounts with money from other customers’ accounts and by changing the address on the customer accounts without authorization. 

Rodriguez worked at First National Bank in Edinburg. Beginning in at least January 2006, she began taking money from customer accounts without authorization. She continued to do so during the time PlainsCapital Bank took over First National Bank.

A PlainsCapital Bank audit resulted in her firing on Aug. 12, 2014. Following her termination, employees discovered documents at her desk including a 1099 statement belonging to one of the victims. The statement had been altered with whiteout over the address and interest earned sections and new information typed over them. The new address was actually a private mailbox that Rodriguez leased.  

Law enforcement executed a search warrant on that private mailbox, at which time they discovered multiple mailings to account holders at her address. 

Further investigation revealed a large amount of unexplained money deposited into some of Rodriguez’s accounts which corresponded with the time of the unauthorized withdrawls from the victim accounts. The victim accounts belonged to individuals who interacted with Rodriguez directly when she was employed at the bank. The accounts primarily belonged to elderly individuals and to individuals living out of the country whom were not likely to regularly monitor their accounts. When account holders or their representatives came in to close their statements, Rodriguez moved money from another victim’s account to backfill the account about to be closed. 

A forensic audit conducted by an outside accounting firm determined that approximately $1.3 million was taken from six victim accounts over an eight-year time span. As part of her plea, Rodriguez agreed to pay more than $1.1 million in restitution.  

Rodriguez 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 conducted the investigation with the assistance of the Federal Deposit Insurance Corporation. Assistant U.S. Attorney Joseph Leonard is prosecuting the case.

HOUSTON – A 28-year-old former employee of BP America Inc. has been ordered to federal prison for attempting to extort money from the company, announced U.S. Attorney Ryan K. Patrick. George Koutsostamatis pleaded guilty to one count of wire fraud April 16, 2018. 

Today, U.S. District Judge Sim Lake ordered Koutsostamatis to serve 27 months in federal prison and furter ordered he pay $552,651.00 in restitution. Koutsostamatis will also serve three years of supervised release following completion of his prison term.

Koutsostamatis admitted that in June 2017 he sent an email to BP falsely claiming that he had infiltrated the company’s computer network system and obtained the personal information of BP employees and their families. He threatened to release internal documents and the personal identifying information if BP did not pay him 125 bitcoins. In truth, Koutsostamatis obtained BP documents while employed there.

Koutsostamatis is on bond pending his reporting date to the bureau of prisons.

The FBI Houston Cyber Task Force investigated this case. The FBI Houston Cyber Task Force is a multi-agency task force responsible for investigating, pursuing and defeating cyber criminals who seek to exploit our nation’s most significant computer systems, networks and critical infrastructure. The Houston field office of the FBI led the investigation with assistance from U.S. Attorney’s Offices in Houston and Chicago, FBI – Chicago field office and the National Crime Agency in the United Kingdom. Assistant U.S. Attorney Rodolfo Ramirez is prosecuting the case.

BROWNSVILLE, Texas – A 21-year-old man and an 18-year-old woman have both been ordered to federal prison following a drug dispute between the two that ended in violence and an attempted escape from custody, announced U.S. Attorney Ryan K. Patrick. Ricardo Gonzalez and his former girlfriend Violeta Torres, both of Brownsville, pleaded guilty Sept. 21 and Aug. 10, 2017, respectively.

Today, U.S. District Judge Rolando Olvera ordered Gonzalez to serve a 120-month term of imprisonment to be immediately followed by three years of supervised release, while Torres received a term of 87 months followed by four years of supervised release.

Gonzalez and Torres were initially working together to distribute approximately 22 pounds of cocaine in the Brownsville area. Law enforcement ultimately recovered approximately 8.5 pounds of the narcotics.

During the course of the conspiracy, a dispute between the couple caused Torres to leave Gonzalez’s home. Thereafter, she then hired at least one other individual to break into her ex-boyfriend’s home, physically restrain him, tie him up and steal the cocaine.

The next day, Gonzalez travelled to the home where his ex-girlfriend resided and attempted to retrieve the cocaine by force, discharging his firearm during the altercation. After law enforcement arrived on scene in response to the gunfire, Gonzalez escaped police custody and fled into the south Texas brush. Authorities apprehended Gonzalez, who was hiding in the brush, shortly thereafter.

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

The Drug Enforcement Administration conducted the investigation with the assistance of the Brownsville Police Department and the Texas Department of Public Safety. Assistant U.S. Attorney Jason Corley prosecuted the case.

HOUSTON – A 30-year-old resident of Houston had pleaded guilty to cconspiracy to interfere with commerce by robbery, announced U.S. Attorney Ryan K. Patrick.  

Gabriel Ocampo-Mayorquin admitted in federal court yesterday that he was part of a violent robbery crew that would rob traveling jewelry salesmen during their travels to Houston. 

On Sept. 11, 2009, Ocampo-Mayorquin and Columbian co-conspirators robbed an off-duty Texas Alcohol and Beverage Commission (TABC) officer and an interstate traveling jeweler at gunpoint at 3201 Sage Road in Houston. Ocampo-Mayorquin and Santos Diaz-Soto, 32, approached the TABC officer while he was waiting in his car on the salesman. Diaz-Soto had the gun and Ocampo-Mayorquin a “glass punch” used to break the windows of the car.

After Ocampo-Mayorquin broke the window, Diaz-Soto held the officer at gunpoint, at which time they attempted to steal several watches. The officer fired shots resulting in injuries to both. Diaz-Soto was shot in the back and arms, while Ocampo-Mayorquin was shot in the arm. 

The men then fled into a green Acura that Juan Carlos Valencia, 35, was driving. Immediately thereafter, witnesses observed three suspicious vehicles enter into the Gables Apartment Complex located at 3300 Sage Road to change license plates and switch cars. Ocampo-Mayorquin fled to Mexico after this robbery under an alias, while the others, all Columbian nationals, were charged and sentenced for their various roles in this robbery. 

Ocampo-Mayorquin spent eight years in a Mexican prison, after which the FBI brought him back to the United States face these charges. He will remain in custody pending sentencing, at which time he faces up to 20 years in prison and a possible $250,000 fine.  

The FBI conducted the investigation. Assistant U.S. Attorney Suzanne Elmilady is prosecuting the case.

BROWNSVILLE, Texas – A 21-year-old Raymondville man has been ordered to prison for his conviction of conspiracy to import and conspiracy to possess with intent to distribute methamphetamine, announced U.S. Attorney Ryan K. Patrick. A federal jury sitting in Brownsville returned its verdicts against Zack Anthony Sayas Oct. 24, 2017, following two days of trial and less than two hours of deliberation.

Today, U.S. District Judge Rolando Olvera considered the lack of criminal history and handed Sayas a 144-month sentence to be immediately followed by five years of supervised release.

During trial, the jury heard that Sayas had recruited and conspired with Jose Angel Reyes Jr., 24, also of Raymondville, to travel from Raymondville to Mexico with the intention of smuggling the methamphetamine and transporting it to Houston.

On Dec. 8, 2015, at approximately 6:15 a.m., Reyes attempted to enter the United States via the Veterans Port of Entry as the driver and single occupant of a silver Chevy Aveo. The car was randomly selected for secondary inspection, at which time officers discovered bundles wrapped in tape hidden in each door panel. The substance in the bundles tested positive for crystal methamphetamine and weighed approximately 11.94 kilograms. He was taken into custody at that time.

While detained, agents observed his cell phone receiving continuous messages from the same number. They were also able to obtain an extraction report that included previously deleted text messages from the same sender.

Reyes identified the individual that recruited him to go to Mexico as Sayas. Reyes was to travel to Brownsville where Sayas would take possession of his car and travel to Mexico where the vehicle would be loaded with drugs. Then both Reyes and Sayas would drive the car back to Houston to deliver the drugs. However, there was a slight change of plans and Reyes agreed to drive the car through the port of entry by himself and pick up Sayas on the U.S. side of the border. However, Reyes was intercepted at the Veteran’s Port of Entry.

Evidence showed that the phone number associated to Sayas was the same as the one that sent messages and voicemail to Reyes. The jury also heard that Sayas had driven the Chevy Aveo into Mexico through the Gateway Port of Entry on Dec. 7, 2015, and he re-entered the U.S. via the pedestrian lane the following day.  

During the trial, Sayas attempted to convince the jury he was working the case as a confidential informant. However, the jury heard rebuttal testimony to the contrary, did not believe his claims and convicted him on all counts as charged.

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

Reyes previously pleaded guilty to possession with intent to distribute methamphetamine and later received a 100-month sentence.

Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorneys David Coronado and Ana Cano are prosecuting the case.

McALLEN, Texas - A 21-year-old Elsa man has been ordered to federal prison for his part in a methamphetamine smuggling conspiracy, announced U.S. Attorney Ryan K. Patrick. Guillermo Calderon Jr. pleaded guilty in November 2017.

Today, U.S. District Judge Micaela Alvarez sentenced Calderon to 168 months in prison to be followed by a three-year-term of supervised release. 

The investigation began in September 2017 when a tractor trailer crossed the border through the Pharr Port of Entry. The trailer was later found to have approximately 90 kilograms of methamphetamine concealed within its tires. Law enforcement followed the tractor trailer and later saw Calderon drive to the area where it had been parked. Calderon admitted he coordinated the delivery of narcotics in the trailers and sending money south in the trailers.

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

Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with assistance from Customs and Border Protection – Office of Field Operations and the Pharr Police Department. Assistant U.S. Attorney (AUSA) Joseph Leonard and former AUSA U.S. Attorney Lynn Wang prosecuted the case.

McALLEN, Texas – A 38-year-old Edinburg man has been ordered to prison following his conviction of being a felon in possession of a firearm, announced U.S. Attorney Ryan Patrick. Ismael Tovar-Zavala pleaded guilty Aug. 8,2018.  

Today, U.S. District Judge Micaela Alvarez ordered him to federal prison for 100 months. The court noted his lengthy and violent criminal history in assessing the sentence.

On April 21, 2016, authorities stopped Tovar-Zavala for a traffic offense. Upon investigation, they determined he was in possession of a loaded 7.62x39 mm Yugoslavia assault rifle with a high capacity magazine attached. As a seven-time convicted felon, he is prohibited from possessing a firearm or ammunition per federal law. He was further determined to be a Texas Chicano Brotherhood gang member.

Tovar-Zavala claimed he had the assault rifle for his “protection.” 

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

The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation with the assistance of Hidalgo County Sheriff’s Office. Assistant U.S. Attorney David A. Lindenmuth prosecuted the case.

HOUSTON – The seven men involved in the July 2017 armed robbery of First Community Credit Union in Katy have been ordered to federal prison, announced U.S. Attorney Ryan K. Patrick. A jury deliberated for approximately two hours following a four-day trial before convicting Walter Freeman Jordan aka “Wacko,” 31, and Johnathon Nico Wise, 27, both of Houston, on Jan. 25, 2018.

Both were charged and convicted of aiding and abetting aggravated bank robbery. Jordan was also convicted of aiding and abetting the unlawful use of a firearm in the commission of a crime of violence.

Five others - Jaylen Christine Loring, 22, Daryl Carlton Anderson, 33, Deandre Bendard Santee, 27, Raymond Demond Pace, 21, and Zelmer Samuel Bonner, 27, all of Houston, had pleaded guilty prior to trial.

Today, U.S. District Judge Keith P. Ellison, who presided over the trial, handed Jordan a 262-month sentence for the bank robbery as well as another 84 months for the firearms offense which must be served consecutively. Wise received a 121-month-term of imprisonment. Both will also be required to serve a term of five years of supervised release following completion of the prison term.

Pace received a 50-month sentence for the underlying bank robbery, while Loring, Santee, Anderson and Bonner were sentenced to 12, 105, 70 and 70, months, respectively. Pace and Bonner were also convicted on firearms charges and each received 84 months which must be served consecutively resulting in total sentences of 134 and 154 months, respectively.

At trial, the jury heard that at approximately 12:52 p.m. on July 25, 2017, a stolen black Toyota Tundra drove to the front of the First Community Credit Union located at 23120 Cinco Ranch Boulevard in Katy. Once there, Jordan, Bonner and Pace entered the bank and ordered everyone to get on the ground. While inside, Jordan and Bonner jumped the teller counter and demanded credit union employees to open the teller drawers. When one of those employees did not comply quickly enough, Bonner punched the employee in the head while yelling “hurry up!”

Pace kept customers and employees on the ground during the robbery. Soon thereafter, he yelled “the cops are down the street, let’s go!” 

The robbers were communicating with the lookouts - Wise, Santee, Anderson and Loring - outside of the credit union via cell phone during the crime.  

The robbers returned to the Toyota Tundra and fled the scene along with three other vehicles – a silver Chevrolet Malibu, silver Nissan Rogue and a maroon Volkswagen Jetta. Loring was apprehended a short time later in the Malibu as was Anderson who was driving the Jetta. Shortly thereafter, officers also stopped the Rogue and arrested Santee and Wise. 

Authorities pursued the Tundra for 19 miles, which was travelling at speeds up to 120 mph east on I-10. Authorities were eventually able to apprehend Pace, Bonner and Jordan at the North Post Oaks Lofts apartment complex in Houston. Officers located a Springfield semi-automatic pistol from the Toyota Tundra as well as a Stoeger Cougar .40 Caliber semi-automatic pistol from inside the apartment where Jordan had been hiding.

During trial, the jury heard from Loring and Anderson who testified about the robbery plan and what transpired. Additional testimony came from more than 10 officers as well as an expert who explained how the cell phones were identified and used during the crime.  

The defense attempted to convince the jury that Jordan and Wise had been mis-identified and had no knowledge of the robbery plan. They did not believe their claims and found them guilty as charged.

With the exception of Loring, who was permitted to remain on bond, all have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

The case is the result of the Houston Law Enforcement Violent Crime Initiative created to proactively fight violent crime across the Greater Houston area. The FBI and the Houston Police Department conducted the investigation. Assistant U.S. Attorneys Richard D. Hanes and Heather Rae Winter are prosecuting the case.

CORPUS CHRISTI, Texas - A 30-year-old Corpus Christi man has been ordered to federal prison for the rest of his life following his admission he sexually assaulted four minor females, announced U.S. Attorney Ryan K. Patrick. Matthew Joseph Lucio pleaded guilty April 3, 2018, to two counts each of online solicitation and production of child pornography.

Today, U.S. District Judge Nelva Gonzales Ramos imposed the sentence, further ordering Lucio to pay $10,000 in restitution.

Additional information was also presented today, including testimony that one adult and eight minor females had reported Lucio drugged and sexually assaulted them. The court heard that authorities discovered several photographs of what appeared to be young females on Lucio’s digital devices along with more than 24,000 pages of social media communications between him and other unidentified minor females that were sexual in nature. Other images included photographs of Lucio with narcotics and holding firearms. The court also heard from the victims’ relatives detailing how Lucio’s offenses has impacted the their lives and their families.

In November 2017, the National Center for Missing and Exploited Children (NCMEC) notified authorities that Lucio had solicited a minor female via an internet messaging application for sexual intercourse. Law enforcement identified the minor female who confirmed the abuse. Days later, law enforcement received another NCMEC report that Lucio solicited a different minor female via an internet messaging application for sexual intercourse. Authorities identified the second minor female who also confirmed the abuse.

Law enforcement obtained a search warrant for Lucio’s residence, after which agents seized several digital devices and located narcotics. Forensic analysis of the devices led to the discovery of videos depicting the sexual assault of two different minor females. Both minors were located and also confirmed the abuse. All four minor females reported that Lucio drugged them before they were sexually assaulted.

Lucio was arrested on federal charges in February 2018 and has been in custody since that time where he will remain 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, Corpus Christi Police Department—Internet Crimes Against Children Task Force and the Nueces County District Attorney’s Office conducted the investigation with the assistance of NCMEC.

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

CORPUS CHRISTI, Texas – A Mexican National who was on a visitor visa has been ordered to federal prison for attempting to smuggle illegal aliens behind a load of produce, announced U.S. Attorney Ryan K. Patrick. Luis Valero-Carrizales, 39, pleaded guilty April 4, 2018.   

Today, U.S. District Judge Nelva Gonzales Ramos handed Valero-Carrizales a 30-month sentence. Not a U.S. citizen, Valero-Carrizales is expected to face deportation proceedings following his release from prison.

At the time of his plea, Valero-Carrizales admitted he conspired to transport illegal aliens hidden behind a load of produce in the trailer portion of the 18-wheeler he was driving. On Dec. 16, 2017, Valero-Carrizales drove a freightliner and approached the primary inspection lane at the U.S. Border Patrol Checkpoint near Falfurrias. During a routine immigration inspection, a service canine alerted to the trailer.

During a subsequent search of the vehicle, authorities discovered 53 illegal aliens hidden inside. The temperature inside the refrigerated trailer was 54 degrees.

He was taken into custody at that time where he remains pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

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

HOUSTON – Two Texas men have been ordered to federal prison following their convictions of possession with intent to distribute heroin, announced U.S. Attorney Ryan K. Patrick. Jose Jony Romero, 41, of Houston, and Ricardo Rodriguez, 31, of Laredo, pleaded guilty April 26 and 24, 2018, respectively. 

Today, U.S. District Judge Keith Ellison ordered Romero to serve 188 months in federal prison based on his responsibility for 35 kilograms of seized heroin in addition to six kilograms of methamphetamine since 2015. Rodriguez received a 120-month-term of imprisonment for his participation in transporting the heroin to Houston.

The investigation began in October 2015. The investigation revealed Romero was planning to deliver methamphetamine to several individuals in Houston. After leaving Romero’s residence, authorities stopped their vehicle. Inside, law enforcement discovered a cardboard box with Tupperware containers containing approximately six kilograms of methamphetamine. Romero’s fingerprints were also found on the containers.

In March 2017, law enforcement stopped Rodriguez on interstate 10 in Fayette County. In the toolbox in the truck’s bed was were five wooden blocks which contained black tar heroin. Further investigation led authorities to discover the phone number Rodriguez called to finalize the delivery belonged to Romero. He was arrested as the heroin was delivered to him.

Agents opened the five wooden blocks and found 16 packages of narcotics, which totaled 32 kilograms of heroin and nearly one kilograms of methamphetamine. Inside Romero’s apartment, authorities also discovered an additional three kilograms of heroin and packaging material.

Romero has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. Previously released on bond, Rodriguez was permitted to remain on bond.

The Drug Enforcement Administration, Houston Police Department and Fayette County Sheriff’s Office conducted the investigation with assistance from the Harris County District Attorney’s Office. Assistant U.S. Attorney Robert Stabe is prosecuting the case.

CORPUS CHRISTI, Texas - A 26-year-old former Navy sailor has been ordered to federal prison for distributing a video depicting the drowning of puppies, announced U.S. Ryan K. Patrick. Former Petty Officer Third Class Daniel James O’Sullivan pleaded guilty March 28, 2018.

Today, U.S. District Judge Nelva Gonzalez Ramos handed O’Sullivan a 21-month sentence. O’Sullivan will also be required to serve a term of three years of supervised release following completion of the prison term.

In June 2016, Naval Criminal Investigative Service (NCIS) agents were notified that O’Sullivan would be in possession of disturbing videos depicting the torture and killing of animals. Authorities interviewed him at Naval Air Station Corpus Christi where he was stationed at the time. O’Sullivan admitted he distributed a video to an individual in Montana that depicted the drowning of puppies in a river. That individual admitted to receiving the video. 

Law enforcement conducted a forensic search on his digital devices which resulted in the discovery of the video depicting the drowning of puppies and other animal crush videos. In one video, a dog’s mouth is closed with duct tape as it is set on fire. In another, a dog is thrown off a high-rise building. Other videos depict mice and baby chicks being ground-up in a blender. 

Under federal law, it is illegal to depict - via photograph, motion-picture film, video, digital recording or electronic image - actual conduct in which one or more living non-human mammals, birds, reptiles or amphibians is intentionally crushed, burned, drowned, suffocated, impaled or otherwise subjected to serious bodily injury, and is obscene.

This is the second such case prosecuted in this district. The first resulted in a 57-month federal prison sentence and was believed to be the first indicted nationwide since the statute was amended in 2010.  

In September 2017, O’Sullivan received an other than honorable discharge from the Navy.

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

NCIS conducted the investigation. Assistant U.S. Attorney Hugo R. Martinez is prosecuting the case. 

A dual U.S.-Venezuelan citizen who controlled multiple companies was arrested yesterday on foreign bribery charges for conspiring to make, and making, corrupt payments to an official of Venezuela’s state-owned and state-controlled energy company, Petroleos de Venezuela S.A. (PDVSA), in exchange for favorable business treatment with 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.

Jose Manuel Gonzalez Testino (Gonzalez), 48, was arrested at Miami International Airport, on an arrest warrant based on a criminal complaint filed in the Southern District of Texas that was unsealed yesterday.  He made his initial appearance today before U.S. Magistrate Judge Lauren F. Louis of the Southern District of Florida.  Gonzalez is charged with conspiring to violate the Foreign Corrupt Practices Act (FCPA) and paying bribes to a foreign official in violation of the FCPA.

According to the criminal complaint, Gonzalez and a co-conspirator paid at least $629,000 in bribes to a former PDVSA official in exchange for the official taking steps to (1) direct PDVSA contracts to Gonzalez’s companies, (2) give Gonzalez’s companies priority over other vendors to receive payments, and (3) award Gonzalez’s companies PDVSA contracts in U.S. dollars instead of Venezuelan bolivars.  

The charges contained in the complaint are merely allegations and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

With the arrest of Gonzalez, the Justice Department has announced charges against 17 individuals, 12 of whom have pleaded guilty, as part of a larger, ongoing investigation by the U.S. government into bribery at PDVSA.  HSI in Houston is conducting the ongoing investigation with assistance from HSI in Boston and Miami.  Trial Attorneys Sarah E. Edwards and Jeremy R. Sanders 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 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. 

McALLEN, Texas – Two former San Juan police officers have been ordered to federal prison for lying to federal agents, announced U.S. Attorney Ryan K. Patrick. Following two jury trials in December 2017 and May 2018, Salvador Hernandez, 30, of Mission, and Richard Leon Castillo, 27, of Pharr, were convicted of making materially false statements to agents with the Drug Enforcement Administration (DEA) who were conducting an investigation into missing bundles of cocaine.

Today, U.S. District Judge Micaela Alvarez ordered Hernandez to serve 24 months in prison, while Castillo received a 16-month sentence. Both will also serve three years of supervised release following their prison terms. In imposing the sentences, the court noted she had no doubt the defendants knowingly and intentionally lied and tried to mislead DEA agents while they were conducting the criminal investigation. As former officers, Judge Alvarez also stated that Castillo and Hernandez swore an oath to uphold and enforce the law and that their criminal conduct tainted the entire community by eroding the community’s trust in law enforcement. Judge Alvarez upwardly departed from the sentencing guidelines because of the serious nature of their conduct, their positions of trust within the community, the need to promote respect for the law and the need to prevent future criminal conduct.

During both trials, the juries heard that on Aug. 27, 2016, authorities seized a load of cocaine from an abandoned vehicle in a San Juan orchard. The investigation revealed 40 bundles of cocaine were intentionally left in the vehicle. However, officers with the San Juan Police Department logged only 37 bundles into evidence.

During the course of the investigation into the missing cocaine, agents discovered the drugs had been stored in a vehicle belonging to Hernandez at the scene. DEA agents interviewed Hernandez, at which time he claimed he never opened the hatch once the drugs were placed in his unit. He added that while assisting in the search for a suspect, he helped search a shed with fellow officer Castillo and Border Patrol (BP) agents.

Authorities also interviewed Castillo, at which time he claimed never to have seen the narcotics prior to their arrival at the police department and that he did not know who transported the cocaine.

DEA then obtained body camera footage from Castillo that showed both officers had lied to DEA agents. In the video, Hernandez and Castillo finished searching a shed and then Hernandez allowed Castillo to touch the cocaine bundles. The footage also demonstrated the two men were alone when they discussed the fact that the bundles had not yet been counted. In the video, Hernandez told Castillo to pick up a bundle. When Castillo reached for one, Hernandez said, “that one’s mine.”

Further evidence presented to the jury revealed that when agents asked Castillo whether he was involved in stealing three kilograms of cocaine, he looked down and refused to answer the question. At the time of Hernandez’s arrest on drug charges, he questioned being taken into custody, noting there were “bigger fish involved.”

Previously released on bond, both were permitted to remain on bond and surrender to a U.S. Bureau of Prisons facility to be determined at a later date.

The DEA, FBI and Department of Homeland Security – Office of Inspector General conducted the investigation. Assistant U.S. Attorneys Kristen Rees and Bobby Lopez prosecuted the case.

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BROWNSVILLE, Texas – A 39-year-old Edinburg man has been ordered to federal prison following his conviction of trafficking 131.6 kilograms of marijuana, announced U.S. Attorney Ryan K. Patrick. Rogelio Ramos, a known member of the Vallucos street gang, pleaded guilty April 27, 2018. 

Today, U.S. District Judge Fernando Rodriguez Jr.  ordered Ramos to serve 87 months in federal prison to be immediately followed by four years of supervised release.

On March 9, 2018, authorities engaged in a vehicle pursuit after watching several individuals loading large bundles of marijuana into a Ford Taurus near the U.S. and Mexico border around Blue Town. The vehicle stopped and authorities watched Ramos run into a sugar cane field to hide. Agents found 12 bundles of marijuana in the backseat and trunk of the Taurus, totaling 131.6 kilograms.  

Ramos admitted he was intending to distribute the marijuana within the United States. 

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

The Drug Enforcement Administration and Border Patrol conducted the investigation. Assistant U.S. Attorney Holly D’Andrea prosecuted the case.

CORPUS CHRISTI, Texas – Sam Kane Beef Processors LLC has entered into an agreement with the United States to comply with the Packers and Stockyards (P&S) Act and to begin to repay nearly $38 million currently owed to local livestock sellers, announced U.S. Attorney Ryan K. Patrick.

Following a hearing in Corpus Christi federal court today, Sam Kane has agreed to promptly pay for livestock purchases by the next business day after purchases are completed as the P&S Act requires. They have also agreed to a repayment plan which would result in full payment to local ranchers the nearly $38 million currently owed to them within the next 18 months. They must also preserve and administer the statutory trust and have agreed to the appointment of an independent chief restructuring officer to ensure compliance with all aspects of the agreement. 

If Sam Kane fails to make any of the payments as agreed or abide by any terms of the agreement, the court will appoint a receiver to manage Sam Kane financial affairs.

On June 14, 2018, two complaints were filed against Sam Kane Beef Processors LLC for alleged violations of the Packers and Stockyards (P&S) Act. The complaints allege Sam Kane is failing to timely pay for livestock. Sam Kane is a fed steer and heifer slaughtering plant located in Corpus Christi and operates subject to the P&S Act. 

Both complaints allege that as of June 8, 2018, Sam Kane owed approximately $34.96 million to unpaid livestock sellers at an average 38 days late with some instances up to 60 days late.  The complaints allege Sam Kane’s failure to timely pay resulted in livestock sellers filing claims under the packer statutory trust totaling more than $142 million. 

The U.S. Department of Agriculture (USDA) filed an administrative complaint alleging Sam Kane failed to pay the full purchase price for livestock within the time period required by the P&S Act on numerous occasions from on or about Jan. 27, 2017, through the date of the complaint. The P&S Act authorizes civil penalties of up to $11,000 per violation.

The P&S Act is a fair trade practice and payment protection law that promotes fair and competitive marketing environments for the livestock, meat and poultry industries. As it relates to livestock sales, the P&S Act requires packers to pay the full purchase price of livestock the next business day following completion of the transaction. The P&S Act authorizes the USDA to file administrative complaints to enforce violations. Concurrently, the Act also authorizes the Department of Justice to seek injunctive relief while administrative enforcement actions are pending before the USDA. 

The U.S. Attorney’s Office for the Southern District of Texas subsequently filed a federal complaint seeking a preliminary injunction ordering Sam Kane to comply with the P&S Act while the administrative complaint is pending before the USDA.

Both complaints follow a prior Secretary of Agriculture order issued Jan. 17, 2017, requiring Sam Kane cease and desist from failing to pay when due the full purchase price of livestock.  They also allege Sam Kane violated this order.   

Assistant U.S. Attorney Chad W. Cowan is handling the matter.

BROWNSVILLE, Texas – A 38-year-old South Texas man has been sentenced for his involvement in a multi-state drug trafficking conspiracy that had been trafficking marijuana and cocaine since 2003, announced U.S. Attorney Ryan K. Patrick. Arnaldo Bermea, of Rio Grande City, pleaded guilty Aug. 1, 2017.

Today, U.S. District Judge Andrew S. Hanen sentenced Bermea to a 102-month term of imprisonment to be immediately followed by a five-year term of supervised release. He was also ordered to pay a $10,000 fine.

Judge Hanen previously sentenced six other defendants in connection with this conspiracy. Jose Manuel Portillo-Guerrero, 42, of Valadeces, Tamaulipas, Mexico, Javier Alejandro Aldava, 30, and Oscar Erick Calvillo-Lores, 38, both of Reynosa, Tamaulipas Mexico, all undocumented aliens were sentenced to 52, 120 and 192 months in prison, respectively. Heber Bienvendio Tejada, 37, of New Jersey, received a 48-month prison term while Moises Ramirez, 34, and Ramiro Espinoza, 48, both of Brownville, were ordered to serve 60 and 81 months, respectively.

All seven conspirators were part of a multi-state drug trafficking and money laundering organization that had existed since 2003. The drug trafficking organization, based out of the Rio Grande Valley, would hire truck drivers to haul loads of produce to northern states with ton quantities of marijuana and multi-kilogram quantiles of cocaine hidden in false compartments. Drug proceeds would then be transported back to the Rio Grande Valley.

All defendants except Tejada, Ramirez and Espinoza, had pleaded guilty to conspiracy to possess with intent to distribute more than 1000 kilograms of marijuana. The evidence at sentencing indicated that on Aug. 10, 2011, agents approached a suspected narcotics stash house in Mission and found Portillo-Guerrero, Calvillo-Lores and Aldava. Authorities arrested all three after agents discovered 2,120 kilograms of marijuana within the garage of the residence. They also found marijuana hidden within concreate pillars and some hidden within a trailer inside the garage.

Bermea was coordinating the transportation of marijuana within the stash house to other parts of the country.

Tejada, Ramirez and Espinoza each pleaded guilty to conspiracy to possess with intent to distribute more than five kilograms of cocaine in connection with 98 kilograms of cocaine seized from within an 18-wheeler Tejada was driving also on Aug. 10, 2011.

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

The case was the result of a nearly three-year Organized Crime Drug Enforcement Task Force investigation. The Drug Enforcement Administration conducted the investigation with the assistance of IRS-Criminal Investigation; Immigration and Customs Enforcement’s Homeland Security Investigations; Bureau of Alcohol, Tobacco, Firearms and Explosives; FBI; Hidalgo County High Intensity Drug Trafficking Area task force; Border Patrol and the Brownsville Police Department. Assistant U.S. Attorney Angel Castro is prosecuting the case.

BROWNSVILLE, Texas – A 19-year-old U.S. citizen who resided in Matamoros, Mexico, has been ordered to prison for smuggling methamphetamine through the local port of entry, announced U.S. Attorney Ryan K. Patrick. Brenda Guerra Rios pleaded guilty Jan. 17, 2018, to possession with intent to distribute more than 50 grams of methamphetamine.

Today, U.S. District Judge Andrew S. Hanen ordered Guerra-Rios to federal prison for 66 months. The sentence will be immediately followed by three years of supervised release.

On Nov. 7, 2017, Guerra-Rios attempted to make entry into the United States from Mexico through the pedestrian lane at the Gateway International Port of Entry in Brownsville. A search in secondary inspection revealed a package hidden inside a girdle near her abdomen. The package contained 491.5 grams of methamphetamine.

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

Immigration and Customs Enforcement’s Homeland Security Investigations and Customs and Border Protection conducted the investigation.  Assistant U.S. Attorney David Coronado prosecuted the case.

BROWNSVILLE, Texas – A 26-year-old Brownsville resident has been ordered to federal prison following his conviction for production of child pornography, announced U.S. Attorney Ryan K. Patrick. Manuel Teodoro Perez pleaded guilty Feb. 14, 2018.

Today, U.S. District Judge Andrew Hanen sentenced Perez to 240 months in federal prison. At the hearing, the court heard that Perez molested a four-year-old child on at least five separate occasions. In one instance, Perez molested the child while another younger child was present in the room. The court also heard that Perez was in possession of 628 images and 57 videos of child pornography at the time of his arrest.

In handing down the sentence, Judge Hanen noted the nature and circumstances of the offense as the justification for the 20-year sentence. Perez will also serve 20 years on supervised release following the sentence, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. Perez will also be ordered to register as a sex offender.

In April 2017, the Rio Grande Valley Child Exploitation Task Force initiated an investigation into an email address associated with the distribution and downloading of child pornography through the use of internet applications. Perez was ultimately located at his residence in Brownsville and was found to be the possessor of the email address. Further investigation revealed Perez was in possession of numerous images and videos of child pornography – 628 images and 57 videos in total.

During the forensic analysis of the digital storage device Perez was utilizing to store his child pornography collection, law enforcement discovered a video of Perez sexually assaulting a four-year-old minor child. Further investigation revealed Perez had sexually assaulted the minor child on five separate occasions.

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

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

HOUSTON - The owner of Crown Financial Services has entered a guilty plea to aiding and assisting in preparing false tax returns, announced U.S. Attorney Ryan K. Patrick.

Fatai Adeniji was the sole tax preparer for Crown Financial Services. From 2012 through 2016, he admitted he prepared false tax returns for his clients which contained false income, false expenses, false education credits and false earned income credits.

Further, from 2013 through 2015, Adeniji prepared and filed false tax returns for himself which omitted most of his earned income from tax preparation and claimed false education credits.

U.S. District Judge Keith Ellison accepted the plea and set sentencing for Oct. 4, 2018. At that time, Adeniji faces up to three years in federal prison as well as a possible $100,000 fine.

He was permitted to remain on bond pending that hearing.

IRS – Criminal Investigation conducted the investigation. Assistant U.S. Attorney Vernon Lewis is prosecuting the case.

HOUSTON – Twenty-one members of a massive India-based fraud and money laundering conspiracy that defrauded thousands of U.S. residents of hundreds of millions of dollars were sentenced this week to terms of imprisonment up to 20 years. Three other conspirators were sentenced earlier this year for laundering proceeds for the conspiracy, which was operated out of India-based call centers that targeted U.S. residents in various telephone fraud schemes. This week’s sentencing hearings took place in Houston before the Honorable David Hittner of the Southern District of Texas.

Attorney General Jeff Sessions of the U.S. Department of Justice, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ryan Patrick of the Southern District of Texas, Acting Executive Associate Director Derek N. Benner of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Inspector General J. Russell George of the U.S. Treasury Inspector General for Tax Administration (TIGTA), and Special Agent in Charge David Green of the U.S. Department of Homeland Security (DHS) Office of Inspector General (OIG) made the announcement today.

“The stiff sentences imposed this week represent the culmination of the first-ever large scale, multi-jurisdiction prosecution targeting the India call center scam industry,” said Sessions. “This case represents one of the most significant victories to date in our continuing efforts to combat elder fraud and the victimization of the most vulnerable members of the U.S. public. The transnational criminal ring of fraudsters and money launderers who conspired to bilk older Americans, legal immigrants and many others out of their life savings through their lies, threats and financial schemes must recognize that all resources at the Department’s disposal will be deployed to shut down these telefraud schemes, put those responsible in jail and bring a measure of justice to the victims.”

“This type of fraud is sickening,” said Patrick. “However, after years of investigation and incredible hard work by multiple agents and attorneys, these con artists are finally headed to prison. Their cruel tactics preyed on some very vulnerable people, thereby stealing millions from them. These sentences should send a strong message that we will follow the trail no matter how difficult and seek justice for those victimized by these types of transnational schemes. We will simply not stand by and allow criminals to use the names of legitimate government agencies to enrich themselves by victimizing others.”

“Today’s sentences should serve as a strong deterrent to anyone considering taking part in similar scams, and I hope that they provide a sense of justice to the victims as well,” said Benner. “There is no safe haven from U.S. law enforcement. HSI will continue to utilize our unique investigative mandate, in conjunction with our local, state and Federal partners, to attack and dismantle the criminal enterprises who would seek to manipulate U.S. institutions and taxpayers.”

“The sentences imposed on these defendants validate our efforts to bring to justice scammers who defraud taxpayers by impersonating employees of the IRS,” said George. “I wish to thank the Department of Justice, the multiple federal agencies involved and most importantly, my own investigators who continue to devote countless hours to these cases. Taxpayers must remain wary of unsolicited telephone calls from individuals claiming to be IRS employees. If any taxpayer believes they or someone they know is a victim of an IRS impersonation scam, they should report it to TIGTA at www.tigta.gov<http://www.tigta.gov> or by calling 1-800-366-4484.”

“The sentences imposed this week provide a clear deterrent to those who would seek to enrich themselves by extorting the most vulnerable in our society,” said Green. “These scammers should know that their actions carry real consequences, both for their victims and for themselves, and that there are dedicated agents and prosecutors who will go above and beyond to find them, identify them and hold them accountable for their crimes.”

Miteshkumar Patel, 42, of Illinois, was sentenced to serve 240 months in prison followed by three years of supervised release on the charge of money laundering conspiracy. According to the factual basis of his plea agreement, Patel served as the manager of a Chicago-based crew of “runners” that liquidated and laundered fraud proceeds generated by callers at India-based call centers. Those callers used call scripts and lead lists to target victims throughout the United States with telefraud schemes in which the callers impersonated U.S. government employees from the IRS and U.S. Citizenship and Immigration Services (USCIS). The callers duped victims into believing that they owed money to the U.S. government and would be arrested or deported if they did not pay immediately. After the victims transferred money to the callers, a network of U.S.-based runners moved expeditiously to liquidate and launder fraud proceeds through the use of anonymous stored value cards. In addition to recruiting, training and tasking runners in his crew, Patel also coordinated directly with the Indian side of the conspiracy about the operation of the scheme. Patel was held accountable for laundering between $9.5 and $25 million for the scheme.

Hardik Patel, 31, of Illinois, was sentenced to serve 188 months in prison followed by three years of supervised release on the charge of wire fraud conspiracy. Hardik Patel consented to removal to India upon completion of his prison term. According to the factual basis of his plea agreement, Hardik Patel was a co-owner and manager of an India-based call center involved in the conspiracy. In addition to managing the day-to-day operations of a call center, Patel also processed payments and did bookkeeping for the various call centers involved in the fraud scheme.  One of the India-based co-defendants with whom Patel communicated about the scheme was Sagar “Shaggy” Thakar, a payment processor that Indian authorities arrested in April 2017 in connection with call center fraud. After moving to the United States in 2015, Hardik Patel continued to promote the conspiracy by recruiting runners to liquidate fraud proceeds. He was held accountable for laundering between $3.5 and $9.5 million dollars for the scheme.

Sunny Joshi, aka Sharad Ishwarlal Joshi and Sunny Mahashanker Joshi, 47, of Sugar Land, Texas, was sentenced to serve 151 months in prison on the charge of money laundering conspiracy and 120 months in prison for naturalization fraud to run concurrently followed by three years of supervised release. According to the factual basis of his plea agreement, Joshi was a member of a Houston-based crew of runners that he co-managed with his brother, co-defendant Mike Joshi aka Rajesh Bhatt. Sunny Joshi communicated extensively with India-based co-defendants about the operations of the scheme and was held accountable for laundering between $3.5 and $9.5 million. Additionally, in connection with his sentence on the immigration charge, Judge Hittner entered an order revoking Joshi’s U.S. citizenship and requiring him to surrender his certificate of naturalization.

Twenty-two of the defendants sentenced before Judge Hittner were held jointly and severally liable for restitution of $8,970,396 payable to identified victims of their crimes. Additionally, the court entered individual preliminary orders of forfeiture against 21 defendants for assets that were seized in the case, and money judgments totaling more than $72,942,300.

Eighteen other defendants were also sentenced in Houston before Judge Hittner this week:

•       Fahad Ali, 25, of Indiana, was sentenced to serve 108 months in prison followed by three years of supervised release on one count of money laundering conspiracy. Judge Hittner also recommended deportation upon completion of his sentence.

•       Montu Barot, 30, of Illinois, was sentenced to serve 63 months in prison followed by three years of supervised release on one count of conspiracy. Judge Hittner entered a stipulated judicial order to remove Barot to India at the conclusion of his sentence.

•       Rajesh Bhatt, aka Mike Joshi, 53, of Sugar Land, Texas, was sentenced to serve 145 months in prison followed by three years of supervised release on one count of money laundering conspiracy. Judge Hittner entered a stipulated judicial order to remove Bhatt to India at the conclusion of his sentence.

•       Ashvinbhai Chaudhari, 28, of Pearsall, Texas, was sentenced to serve 87 months in prison followed by three years of supervised release on one count of money laundering conspiracy.

•       Jagdish Chaudhari, 39, of Alabama, was sentenced to serve 108 months in prison followed by three years of supervised release on one count of money laundering conspiracy. Judge Hittner entered a stipulated judicial order to remove Chaudhari to India at the conclusion of his sentence.

•       Rajesh Kumar, 39, of Arizona, was sentenced to serve 60 months in prison followed by three years of supervised release on one count of conspiracy.

•       Jerry Norris, 47, of California, was sentenced to serve 60 months in prison followed by three years of supervised release on one count of conspiracy.

•       Nilesh Pandya, 54, of Stafford, Texas, was sentenced to serve three years of probation  on one count of conspiracy.

•       Nilam Parikh, 46, of Alabama, was sentenced to serve 48 months in prison followed by three years of supervised release on one count of money laundering conspiracy.

•       Bharatkumar Patel, 43, of Illinois, was sentenced to serve 50 months in prison followed by three years of supervised release on one count of money laundering conspiracy. Judge Hittner entered a judicial order to remove Patel to India at the conclusion of his sentence.

•       Bhavesh Patel, 47, of Alabama, was sentenced to serve 121 months in prison followed by three years of supervised release on one count of money laundering conspiracy.

•       Dilipkumar A. Patel, 53, of California, was sentenced to serve 108 months in prison followed by three years of supervised release on one count of conspiracy. Judge Hittner entered a stipulated judicial order to remove Patel to India at the conclusion of his sentence.

•       Dilipkumar R. Patel, 30, of Florida, was sentenced to serve 52 months in prison followed by three years of supervised release on one count of conspiracy.

•       Harsh Patel, 28, of New Jersey, was sentenced to serve 82 months in prison followed by three years of supervised release on one count of money laundering conspiracy. Judge Hittner also recommended deportation upon completion of his sentence.

•       Nisarg Patel, 26, of New Jersey, was sentenced on one count of conspiracy. He received a prison term of 48 months in prison followed by three years of supervised release.

•       Praful Patel, 50, of Florida, was sentenced to serve 60 months in prison followed by Three years of supervised release on one count of conspiracy.

•       Rajubhai Patel, 32, of Illinois, was sentenced to serve 151 months in prison followed by three years of supervised release on one count of money laundering conspiracy.

•       Viraj Patel, 33, of California, was sentenced to serve 165 months in prison followed by three years of supervised release on one count of money laundering conspiracy. Judge Hittner entered a stipulated judicial order to remove Patel to India at the conclusion of his sentence.

In addition to these 21 defendants, three others were previously sentenced for their involvement in the same fraud and money laundering scheme:

•       Asmitaben Patel, 34, of Illinois, was sentenced before Judge Hittner on March 23. She received 24 months in prison on the charge of conspiracy.

•       Dipakkumar Patel, 38, of Illinois, was sentenced before Judge Eleanor L. Ross in the Northern District of Georgia, on Feb. 14. Patel, who pleaded guilty to charges of conspiracy and passport fraud, was sentenced to serve a prison term of 51 months, to run concurrently. He was also ordered to pay restitution in the amount of $128,006.26.

•       Raman Patel, 82, of Arizona, was sentenced before Judge John Tuchi in the District of Arizona on Jan. 29. In connection with his plea agreement, Raman Patel received a probationary sentence for his plea to conspiracy. He was also ordered to pay restitution in the amount of $76,314.38.

According to various admissions made in connection with the defendants’ guilty pleas, between 2012 and 2016, the defendants and their conspirators perpetrated a complex fraud and money laundering scheme in which individuals from call centers located in Ahmedabad, India, frequently impersonated officials from the IRS or USCIS in a ruse designed to defraud victims located throughout the United States. Using information obtained from data brokers and other sources, call center operators targeted U.S. victims who were threatened with arrest, imprisonment, fines or deportation if they did not pay alleged monies owed to the government. Victims who agreed to pay the scammers were instructed how to provide payment, including by purchasing stored value cards or wiring money. Once a victim provided payment, the call centers turned to a network of runners based in the United States to liquidate and launder the extorted funds as quickly as possible by purchasing reloadable cards or retrieving wire transfers. In a typical scenario, call centers directed runners to purchase these stored value reloadable cards and transmit the unique card number to India-based co-conspirators who registered the cards using the misappropriated personal identifying information (PII) of U.S. citizens. The India-based co-conspirators then loaded these cards with scam funds obtained from victims. The runners used the stored value cards to purchase money orders that they deposited into the bank account of another person. For their services, the runners would earn a specific fee or a percentage of the funds. Runners also received victims’ funds via wire transfers, which were retrieved under fake names and through the use of using false identification documents, direct bank deposits by victims and Apple iTunes or other gift cards that victims purchased.

The indictment in this case also charged 32 India-based conspirators and five India-based call centers with general conspiracy, wire fraud conspiracy and money laundering conspiracy. These defendants have yet to be arraigned in this case. An indictment is merely an allegation and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

HSI, DHS-OIG, and TIGTA led the investigation of this case. Also providing significant support were: the Criminal Division’s Office of International Affairs; Ft. Bend County Sheriff’s Office; police departments in Hoffman Estates and Naperville, Illinois, Leonia, New Jersey; San Diego County District Attorney’s Office Family Protection/Elder Abuse Unit; U.S. Secret Service; U.S. Small Business Administration Office of Inspector General; IOC-2; INTERPOL Washington; USCIS; U.S. State Department’s Diplomatic Security Service; and U.S. Attorney’s Offices of the Northern District of Alabama, District of Arizona, Central District of California, Northern District of California, District of Colorado, Northern District of Florida, Middle District of Florida, Northern District of Georgia, Northern District of Illinois, Northern District of Indiana, Eastern District of Louisiana, District of Nevada and the District of New Jersey. The Federal Communications Commission’s Enforcement Bureau provided assistance in TIGTA’s investigation. Additionally, the Executive Office for U.S. Attorneys (EOUSA), Legal and Victim Programs, provided significant support to the prosecution.

Assistant U.S. Attorneys Mark McIntyre and Craig Feazel of the Southern District of Texas, Senior Trial Attorney Michael Sheckels and Trial Attorney Mona Sahaf of the Criminal Division’s Human Rights and Special Prosecutions Section (HRSP) and Trial Attorney Amanda S. Wick of the Criminal Division’s Money Laundering and Asset Recovery Section prosecuted the case. Kaitlin Gonzalez of HRSP was the paralegal for this case.

A Department of Justice website has been established to provide information about the case to already identified and potential victims, and the public.  Anyone who believes they may be a victim of fraud or identity theft in relation to this investigation or other telefraud scam phone calls may contact the FTC via this website.

Anyone who wants additional information about telefraud scams generally, or preventing identity theft or fraudulent use of their identity information, may obtain helpful information on the IRS tax scams website, the FTC phone scam website and the FTC identity theft website.

Twenty-one members of a massive India-based fraud and money laundering conspiracy that defrauded thousands of U.S. residents of hundreds of millions of dollars were sentenced this week to terms of imprisonment up to 20 years.  Three other conspirators were sentenced earlier this year for laundering proceeds for the conspiracy, which was operated out of India-based call centers that targeted U.S. residents in various telephone fraud schemes.  This week’s sentencing hearings took place in Houston, Texas, before the Honorable David Hittner of the Southern District of Texas.       

Attorney General Jeff Sessions of the U.S. Department of Justice, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ryan Patrick of the Southern District of Texas, Acting Executive Associate Director Derek N. Benner of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Inspector General J. Russell George of the U.S. Treasury Inspector General for Tax Administration (TIGTA), and Special Agent in Charge David Green of the U.S. Department of Homeland Security (DHS) Office of Inspector General (OIG) Houston, Texas made the announcement today.

“The stiff sentences imposed this week represent the culmination of the first-ever large scale, multi-jurisdiction prosecution targeting the India call center scam industry,” said Attorney General Sessions.  “This case represents one of the most significant victories to date in our continuing efforts to combat elder fraud and the victimization of the most vulnerable members of the U.S. public.  The transnational criminal ring of fraudsters and money launderers who conspired to bilk older Americans, legal immigrants and many others out of their life savings through their lies, threats and financial schemes must recognize that all resources at the Department’s disposal will be deployed to shut down these telefraud schemes, put those responsible in jail, and bring a measure of justice to the victims.”

“This type of fraud is sickening,” said U.S. Attorney Patrick.  “However, after years of investigation and incredible hard work by multiple agents and attorneys, these con artists are finally headed to prison. Their cruel tactics preyed on some very vulnerable people, thereby stealing millions from them. These sentences should send a strong message that we will follow the trail no matter how difficult and seek justice for those victimized by these types of transnational schemes. We will simply not stand by and allow criminals to use the names of legitimate government agencies to enrich themselves by victimizing others.”

“Today’s sentences should serve as a strong deterrent to anyone considering taking part in similar scams, and I hope that they provide a sense of justice to the victims, as well,” said HSI Acting Executive Associate Director Derek N. Benner.  “There is no safe haven from U.S. law enforcement. HSI will continue to utilize our unique investigative mandate, in conjunction with our local, state, and federal partners, to attack and dismantle the criminal enterprises who would seek to manipulate U.S. institutions and taxpayers.”

“The sentences imposed on these defendants validate our efforts to bring to justice scammers who defraud taxpayers by impersonating employees of the Internal Revenue Service,” said Inspector General J. Russell George.  “I wish to thank the Department of Justice, the multiple federal agencies involved, and most importantly, my own investigators who continue to devote countless hours to these cases.  Taxpayers must remain wary of unsolicited telephone calls from individuals claiming to be IRS employees.  If any taxpayer believes they or someone they know is a victim of an IRS impersonation scam, they should report it to TIGTA at www.tigta.gov or by calling 1-800-366-4484.”

“The sentences imposed this week provide a clear deterrent to those who would seek to enrich themselves by extorting the most vulnerable in our society,” said DHS-OIG Special Agent in Charge Green.  “These scammers should know that their actions carry real consequences, both for their victims and for themselves, and that there are dedicated agents and prosecutors who will go above and beyond to find them, identify them and hold them accountable for their crimes.”

Miteshkumar Patel, 42, of Illinois, was sentenced to serve 240 months in prison followed by three years of supervised release on the charge of money laundering conspiracy.  According to the factual basis of his plea agreement, Patel served as the manager of a Chicago-based crew of “runners” that liquidated and laundered fraud proceeds generated by callers at India-based call centers.  Those callers used call scripts and lead lists to target victims throughout the United States with telefraud schemes in which the callers impersonated U.S. government employees from the IRS and U.S. Citizenship and Immigration Services (USCIS).  The callers duped victims into believing that they owed money to the U.S. government and would be arrested or deported if they did not pay immediately.  After the victims transferred money to the callers, a network of U.S.-based runners moved expeditiously to liquidate and launder fraud proceeds through the use of anonymous stored value cards.  In addition to recruiting, training, and tasking runners in his crew, Patel also coordinated directly with the Indian side of the conspiracy about the operation of the scheme.  Patel was held accountable for laundering between $9.5 and $25 million for the scheme.    

Hardik Patel, 31, of Illinois, was sentenced to serve 188 months in prison followed by three years of supervised release on the charge of wire fraud conspiracy.  Hardik consented to removal to India upon completion of his prison term.  According to the factual basis of his plea agreement, Patel was a co-owner and manager of an India-based call center involved in the conspiracy.  In addition to managing the day-to-day operations of a call center, Patel also processed payments and did bookkeeping for the various call centers involved in the fraud scheme.  One of the India-based co-defendants with whom Patel communicated about the scheme was Sagar “Shaggy” Thakar, a payment processor that Indian authorities arrested in April 2017 in connection with call center fraud.  After moving to the United States in 2015, Patel continued to promote the conspiracy by recruiting runners to liquidate fraud proceeds.  Patel was held accountable for laundering between $3.5 and $9.5 million dollars for the scheme. 

Sunny Joshi, aka Sharad Ishwarlal Joshi and Sunny Mahashanker Joshi, 47, of Texas, was sentenced to serve 151 months in prison on the charge of money laundering conspiracy, and 120 months in prison on the charge of naturalization fraud to run concurrent followed by three years of supervised release.  According to the factual basis of his plea agreement, Joshi was a member of a Houston-based crew of runners that he co-managed with his brother, co-defendant Mike Joshi, aka Rajesh Bhatt.  Sunny Joshi communicated extensively with India-based co-defendants about the operations of the scheme, and was held accountable for laundering between $3.5 and $9.5 million.  Additionally, in connection with his sentence on the immigration charge, Judge Hittner entered an order revoking Joshi’s U.S. citizenship and requiring him to surrender his certificate of naturalization.      

Twenty-two of the defendants sentenced before Judge Hittner were held jointly and severally liable for restitution of $8,970,396 payable to identified victims of their crimes.  Additionally, the court entered individual preliminary orders of forfeiture against 21 defendants for assets that were seized in the case, and money judgments totaling over $72,942,300.

Eighteen other defendants were also sentenced in Houston before Judge Hittner this week:

• Fahad Ali, 25, of Indiana, was sentenced to serve 108 months in prison followed by three years of supervised release on one count of money laundering conspiracy.  Judge Hittner also recommended deportation upon completion of his sentence.
• Montu Barot, 30, of Illinois, was sentenced to serve 60 months in prison followed by three years of supervised release on one count of conspiracy.  Judge Hittner entered a stipulated judicial order to remove Barot to India at the conclusion of his sentence.
• Rajesh Bhatt, aka Mike Joshi, 53, of Texas, was sentenced to serve 145 months in prison followed by three years of supervised release on one count of money laundering conspiracy.  Judge Hittner entered a stipulated judicial order to remove Bhatt to India at the conclusion of his sentence.
• Ashvinbhai Chaudhari, 28, of Texas, was sentenced to serve 87 months in prison followed by three years of supervised release on one count of money laundering conspiracy. 
• Jagdish Chaudhari, 39, of Alabama, was sentenced to serve 108 months in prison followed by three years of supervised release on one count of money laundering conspiracy.  Judge Hittner entered a stipulated judicial order to remove Chaudhari to India at the conclusion of his sentence.
• Rajesh Kumar, 39, of Arizona, was sentenced to serve 60 months in prison followed by three years of supervised release on one count of conspiracy.  Judge Hittner recommended deportation to India following his prison sentence.   
• Jerry Norris, 47, of California, was sentenced to serve 60 months in prison followed by three years of supervised release on one count of conspiracy. 
• Nilesh Pandya, 54, of Texas, was sentenced to serve three years probation on one count of conspiracy. 
• Nilam Parikh, 46, of Alabama, was sentenced to serve 48 months in prison followed by three years of supervised release on one count of money laundering conspiracy. 
• Bharatkumar Patel, 43, of Illinois, was sentenced to serve 50 months in prison followed by three years of supervised release on one count of money laundering conspiracy.  Judge Hittner entered a judicial order to remove Patel to India at the conclusion of his sentence.
• Bhavesh Patel, 47, of Alabama, was sentenced to serve 121 months in prison followed by three years of supervised release on one count of money laundering conspiracy. 
• Dilipkumar A. Patel, 53, of California, was sentenced to serve 108 months in prison followed by three years of supervised release on one count of conspiracy.  Judge Hittner entered a stipulated judicial order to remove Patel to India at the conclusion of his sentence.
• Dilipkumar R. Patel, 39, of Florida, was sentenced to serve 52 months in prison followed by three years of supervised release on one count of conspiracy.
• Harsh Patel, 28, of New Jersey, was sentenced to serve 82 months in prison followed by three years of supervised release on one count of money laundering conspiracy.  Judge Hittner also recommended deportation upon completion of his sentence.
• Nisarg Patel, 26, of New Jersey, was sentenced to serve 48 months in prison followed by three years of supervised release on one count of conspiracy.  Judge Hittner recommended deportation to India following his prison sentence.     
• Praful Patel, 50, of Florida, was sentenced to serve 60 months in prison followed by three years of supervised release on one count of conspiracy. 
• Rajubhai Patel, 32, of Illinois, was sentenced to serve 151 months in prison followed by three years of supervised release on one count of money laundering conspiracy. 
• Viraj Patel, 33, of California, was sentenced to serve 165 months in prison followed by three years of supervised release on one count of money laundering conspiracy.  Judge Hittner entered a stipulated judicial order to remove Patel to India at the conclusion of his sentence.    

In addition to these 21 defendants, three others were previously sentenced for their involvement in the same fraud and money laundering scheme:

• Asmitaben Patel, 34, of Illinois, was sentenced before Judge Hittner in the Southern District of Texas, Houston Division, on March 23.  She was sentenced to serve 24 months in prison on the charge of conspiracy.
• Dipakkumar Patel, 38, of Illinois, was sentenced before Judge Eleanor L. Ross in the Northern District of Georgia, Atlanta Division, on Feb. 14.  Patel, who pleaded guilty to charges of conspiracy and passport fraud, was sentenced to serve a prison term of 51 months, to run concurrently.  He was also ordered to pay restitution in the amount of $128,006.26.
• Raman Patel, 82, of Arizona, was sentenced before Judge John Tuchi in the District of Arizona, Phoenix Division, on Jan. 29.  In connection with his plea agreement, Raman Patel received a probationary sentence for his plea to conspiracy.  He was also ordered to pay restitution in the amount of $76,314.38.  

According to various admissions made in connection with the defendants’ guilty pleas, between 2012 and 2016, the defendants and their conspirators perpetrated a complex fraud and money laundering scheme in which individuals from call centers located in Ahmedabad, India, frequently impersonated officials from the IRS or USCIS in a ruse designed to defraud victims located throughout the United States.  Using information obtained from data brokers and other sources, call center operators targeted U.S. victims who were threatened with arrest, imprisonment, fines or deportation if they did not pay alleged monies owed to the government.  Victims who agreed to pay the scammers were instructed how to provide payment, including by purchasing stored value cards or wiring money.  Once a victim provided payment, the call centers turned to a network of runners based in the United States to liquidate and launder the extorted funds as quickly as possible by purchasing reloadable cards or retrieving wire transfers.  In a typical scenario, call centers directed runners to purchase these stored value reloadable cards and transmit the unique card number to India-based co-conspirators who registered the cards using the misappropriated personal identifying information (PII) of U.S. citizens.  The India-based co-conspirators then loaded these cards with scam funds obtained from victims.  The runners used the stored value cards to purchase money orders that they deposited into the bank account of another person.  For their services, the runners would earn a specific fee or a percentage of the funds.  Runners also received victims’ funds via wire transfers, which were retrieved under fake names and through the use of using false identification documents, direct bank deposits by victims, and Apple iTunes or other gift cards that victims purchased. 

The indictment in this case also charged 32 India-based conspirators and five India-based call centers with general conspiracy, wire fraud conspiracy, and money laundering conspiracy.  These defendants have yet to be arraigned in this case.  An indictment is merely an allegation and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

HSI, DHS-OIG, and TIGTA led the investigation of this case.  Also providing significant support were: the Criminal Division’s Office of International Affairs; the Ft. Bend, Texas, County Sheriff’s Department; the Hoffman Estates, Illinois, Police Department; the Leonia, New Jersey, Police Department; the Naperville, Illinois, Police Department; the San Diego County District Attorney’s Office Family Protection/Elder Abuse Unit; the U.S. Secret Service; U.S. Small Business Administration Office of Inspector General; IOC-2; INTERPOL Washington; USCIS; U.S. State Department’s Diplomatic Security Service; and the U.S. Attorney’s Offices of the Northern District of Alabama, District of Arizona, Central District of California, Northern District of California, District of Colorado, Northern District of Florida, Middle District of Florida, Northern District of Georgia, Northern District of Illinois, Northern District of Indiana, Eastern District of Louisiana, District of Nevada, and the District of New Jersey.  The Federal Communications Commission’s Enforcement Bureau provided assistance in TIGTA’s investigation.  Additionally, the Executive Office for U.S. Attorneys (EOUSA), Legal and Victim Programs, provided significant support to the prosecution. 

Senior Trial Attorney Michael Sheckels and Trial Attorney Mona Sahaf of the Criminal Division’s Human Rights and Special Prosecutions Section (HRSP), Trial Attorney Amanda S. Wick of the Criminal Division’s Money Laundering and Asset Recovery Section, and Assistant U.S. Attorneys Mark McIntyre and Craig Feazel of the Southern District of Texas prosecuted the case.  Kaitlin Gonzalez of HRSP was the paralegal for this case.       

A Department of Justice website has been established to provide information about the case to already identified and potential victims, and the public.  Anyone who believes they may be a victim of fraud or identity theft in relation to this investigation or other telefraud scam phone calls may contact the FTC via this website.

Anyone who wants additional information about telefraud scams generally, or preventing identity theft or fraudulent use of their identity information, may obtain helpful information on the IRS tax scams website, the FTC phone scam website and the FTC identity theft website. 

CORPUS CHRISTI, Texas – A 38-year-old Corpus Christi man has been ordered to federal prison following his conviction of possessing stolen mail, announced U.S. Attorney Ryan K. Patrick along with Postal Inspector in Charge Adrian Gonzalez of the U.S. Postal Inspection Service (USPIS). Christopher Escobedo pleaded guilty March 29, 2018.

Today, U.S. Circuit Judge Gregg Costa, sitting by designation, handed Escobedo a 36-month sentence to be immediately followed by three years of supervised release. In handing down the sentence, the court noted that the four counts of conviction represented only those mail theft victims with camera surveillance on their porches and that Escobedo undoubtedly had numerous additional victims.

“As a result of investigative efforts, the sentence handed down in this case will send a clear message to mail thieves that they will be vigorously pursued and brought to justice. I  commend the hard work and countless hours put forth by the USPIS and Corpus Christi Police Department (CCPD) which resulted in the arrest and prosecution of this individual,” said Gonzalez. “An important part of the USPIS mission is to ensure public trust in the mail and to defend the nation’s mail system from illicit financial gain.”

At the time of his plea, Escobedo admitted to stealing packages that the U.S. Postal Service (USPS) had left on the front porches of Corpus Christi residents between Dec. 31, 2017, and Jan. 8, 2018. Authorities identified Escobedo or his vehicle in video surveillance at a number of locations where packages were stolen. On one occasion, an observant neighbor confronted Escobedo as he attempted to take a package. The neighbor was able to supply the authorities with Escobedo’s description and a license plate number of the vehicle he was using. Postal inspectors used this information to track down Escobedo and link him to a number of other package thefts in the area. 

Escobedo 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 USPIS conducted the investigation with the assistance of CCPD. Assistant U.S. Attorney Robert D. Thorpe Jr. is prosecuting the case.

LAREDO, Texas – A 31-year-old resident of Montemorelos, Nuevo Leon, Mexico, has been ordered to prison following his conviction of conspiracy with intent to distribute methamphetamine, announced U.S. Attorney Ryan K. Patrick. Rolando Garcia-Fuentes pleaded guilty March 2, 2018.

Today, U.S. District Judge Diana Saldaña ordered Garcia-Fuentes to serve 87 months in federal prison. Not a U.S. citizen, he is expected to face deportation proceedings following completion of his sentence.

On Dec. 9, 2017, law enforcement conducted a traffic stop of a northbound white Ford Freestar van Garcia-Fuentes was driving on IH-35 in La Salle County. At that time, he gave an implausible story regarding his travel.

A search of the vehicle revealed tampering and tool marks on the van’s stereo compartment and dashboard. Garcia-Fuentes agreed to return to the Border Patrol checkpoint where a canine gave a positive alert for the presence of narcotics and/or concealed humans. Authorities removed the stereo compartment and discovered signs of tampering with the vehicle’s air conditioning unit. They discovered a total of 16 bundles that tested positive for methamphetamine and had a net weight of nearly eight kilograms.

Garcia-Fuentes admitted he was getting paid to transport narcotics to the Dallas area and acknowledged he had done so on a previous occasion and was paid approximately $8,000.

Border Patrol and the Drug Enforcement Administration with the assistance of the Texas Department of Public Safety. Assistant U.S. Attorney Michael Bukiewicz prosecuted the case.

CORPUS CHRISTI, Texas - A 37-year-old Corpus Christi man has been ordered to federal prison for robbing a local convenience store at gunpoint and other various firearms offenses, announced U.S. Attorney Ryan K. Patrick. Steven Moore pleaded guilty March 1, 2018, admitting to multiple firearms charges committed over a six-month period between summer 2016 and January 2017.  

Today, visiting U.S. Circuit Judge Gregg Costa sentenced Moore to 144 months in federal prison.

Local police encountered Moore in August 2016 after he had picked up a friend who was caught stealing ammunition from a local sporting goods store. When police searched Moore’s vehicle, they found a .22 caliber rifle outfitted with an homemade silencer and a 9 mm semi-automatic pistol he had stolen from a licensed dealer two weeks prior. 

Moore was arrested and charged by state authorities, but released on bond.

Several months later, while still on bond for the previous incident, Moore was identified as a suspect in a robbery. On Jan. 2, 2017, local police responded to a robbery at a local convenience store. The clerk indicated the robber had pointed a gun at him and took money from the register and several packs of cigarettes. Footage from the store surveillance cameras appeared to show the weapon as a possible 9mm semi-automatic pistol.

On Jan. 17, 2017, 15 days after the robbery, local police arrested Moore in a drug store parking lot where he was found sleeping in a car with the gun used during the robbery in the front pocket of his sweatshirt.

In all, Moore pleaded guilty to possessing three firearms, a silencer and more than 130 rounds of ammunition.

The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation with the assistance of the Corpus Christi Police Department. Assistant U.S. Attorney Brittany Jensen prosecuted the case.

CORPUS CHRISTI, Texas - A 29-year-old Corpus Christi man has been sentenced to federal prison following his conviction of distribution of child pornography, announced U.S. Attorney Ryan K. Patrick. Parker J. Pendergraph pleaded guilty March 26, 2018.

Today, visiting U.S. Circuit Judge Gregg J. Costa sentenced Pendergraph to 60 months in federal prison. Pendergraph was further ordered to serve eight years on supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. Pendergraph will also be ordered to register as a sex offender.

In November 2017, an electronic chat room company notified the National Center for Missing and Exploited Children (NCMEC) that a known image of child pornography had been uploaded to an internet chat room. Authorities were able to link the specific IP address associated with a user known as “jack” to Parker J. Pendergraph.

Law enforcement determined Pendergraph was employed as an assistant band director for a local high school and middle school and obtained a search warrant for his residence. At that time, authorities seized several digital devices that led to the discovery of the known image of child pornography uploaded to the chat room. In addition, law enforcement also located more than 500 images and 390 images of child erotica.   

The image uploaded to the chat room was located on one of Pendergraph’s digital devices. The image depicted a minor female approximately 14 years of age that is nude and sitting on a chair with her knees bent exposing her vagina to the camera. Pendergraph was shown the image, after which he admitted to uploading it.

Pendergraph also acknowledged going to chat sites and wanting to trade pictures of nude girls. He further stated he had seen images of child pornography on his computer for almost a year.  

Immigration and Customs Enforcement’s Homeland Security Investigations and Corpus Christi Police Department’s – Internet Crimes Against Children Task Force conducted the investigation with the assistance of NCMEC.  

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

LAREDO, Texas – A previously convicted drug trafficker has been ordered to federal prison for conspiring to possess with intent to distribute heroin, announced U.S. Attorney Ryan Patrick. Ramiro Hernandez Jr., 40, of Laredo, pleaded guilty Feb. 5, 2018.

Today, U.S. District Judge Diana Saldaña sentenced him to 235 months imprisonment. On supervised release when he committed the crime, the court revoked that term and further ordered he serve an additional 18 months to be served consecutively.

In handing down the sentence, the court noted Hernandez was a career offender, having two prior federal drug trafficking convictions, another for being felon in possession of a firearm, and that this is his new reality when he keeps living this kind of life. Judge Diana Saldaña also mentioned that heroin addiction is a nightmare, and Hernandez was spreading that nightmare to the rest of our community.

The investigation began Oct. 13, 2017, when law enforcement learned Hernandez was holding undocumented aliens in his apartment. One had escaped and reported Hernandez had assaulted him and he was held against his will.

Authorities went to the apartment and discovered 148 grams of heroin, 89 pounds of marijuana and a .40 caliber handgun. Upon searching Hernandez, they also discovered an additional 50 grams of heroin hidden in his rectum.

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

The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation with the assistance of the Laredo Police Department. Assistant U.S. Attorney Christopher dos Santos prosecuted the case.

VICTORIA, Texas – A federal jury in Victoria has returned guilty verdicts on all counts as charged related to the 2017 burning of the local mosque.

U.S. Attorney Ryan Patrick made the announcement along with Acting Assistant Attorney General John Gore of the Department of Justice’s Civil Rights Division, Special Agent in Charge Fred Milanowski of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Special Agent in Charge Perrye K. Turner of the FBI and various state and local law enforcement agencies.

“This case represents the great coordination and cooperation of many federal, state and local law enforcement agencies,” said Patrick. “The Department of Justice is committed to protecting the religious liberty of all people and their ability to practice their faith without being the target of this kind of dangerous activity.”

“All people are entitled to live free from violence and fear, regardless of their religion or place of worship,” said Gore. “Perez’s actions were criminal, unlawful and dangerous. This Justice Department is committed to holding hate crimes perpetrators accountable under the law.”

The jury found Marq Vincent Perez, 26, of Victoria, was responsible for a hate crime in the burning of the Victoria Islamic Center Jan. 28, 2017, and for use of a fire to commit a felony. In addition, they found he possessed an unregistered destructive device for an incident that occurred on Jan. 15, 2017.

“Houses of worship are scared places in America,” said Milanowski. “We are pleased in the outcome of this investigation, and ATF will continue to aggressively investigate all House of worship fires.”

“Hate crimes are not only an attack on a specific victim, they threaten the cornerstone of diversity that America was built upon,” said Turner. “Perpetrators of hate crimes, like Perez, aim to chip away at our nation’s foundations by instilling fear into entire communities with violence.”

In his opening statement, Assistant U.S. Attorney (AUSA) Sharad S. Khandelwal outlined the case against Perez, his hatred for Muslims and what transpired on several occasions in January 2018, leading up to the fire. “This is a simple, straightforward case of hate,” he said.

The jury heard from a total of 19 government witnesses, to include law enforcement officers, experts and others who testified about communications with Perez, one of whom detailed how Perez called Muslims “towelheads.” An FBI agent took the stand and described hate-filled messages found on Perez’s Facebook account.  

Testimony in court detailed how Perez had planned the event and talked about how he had done “recon” of the mosque in the days leading up to the fire. A witness who was with Perez on the night of the fire described how excited Perez was upon seeing the mosque in flames, explaining that he was “jumping up and down like a little kid.”

Additional evidence also revealed that items taken during two burglaries at the mosque were found at his home as was an improvised bomb similar to what was used in an attempted car-bombing approximately two weeks prior to the fire.

The jury also heard from an arson expert who concluded the fire was the result of an “intentional application of an open flame.”

The defense attempted to shift the blame to a juvenile cooperator and tried to challenge the validity of the evidence and expert testimony. He also tried to establish an alibi. The jury was not convinced of any of the claims and found him guilty on all counts as charged following the five-day trial and approximately three hours of deliberation.  

Perez faces up to 20 years in federal prison for the hate crime and up to 10 years for possessing an unregistered destructive device. For use of a fire to commit a felony, the penalty is a consecutive and mandatory minimum of 10 years in prison. All of the counts also carry a potential $250,000 fine. Sentencing has been set for Oct. 2, 2018.  

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

ATF and FBI conducted the investigation along with the City of Victoria Fire Marshal’s Office, Victoria Fire Department, Victoria Police Department, Texas Department of Public Safety - Criminal Investigations Division and Texas Rangers with assistance of Texas State Fire Marshal’s Office and sheriff’s offices in Victoria and Nueces Counties.

AUSAs Khandelwal and Kate Suh are prosecuting the case along with Trial Attorney Saeed Mody of the Department of Justice’s Civil Rights Division.

A dual U.S.-Venezuelan citizen pleaded guilty today for his role in a scheme to bribe officials of Venezuela’s state-owned and state-controlled energy company, Petroleos de Venezuela S.A. (PDVSA), and for his role in an international money laundering scheme involving the bribes paid by the owners of U.S.-based companies to Venezuelan government officials to corruptly secure energy contracts and payment priority on outstanding invoices.

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 (ICE) Homeland Security Investigations’ (HSI) Houston Field Office made the announcement.

Luis Carlos De Leon-Perez (De Leon), 42, a citizen of the United States and Venezuela previously residing in Spain, pleaded guilty today in federal court in Houston to one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA) and one count of conspiracy to commit money laundering.  U.S. District Judge Kenneth M. Hoyt of the Southern District of Texas accepted De Leon’s plea.  Sentencing is scheduled for Sept. 24. 

De Leon was arrested in Spain in October 2017 and subsequently extradited to the United States after a federal grand jury in the Southern District of Texas returned a 20-count indictment against him and Nervis Gerardo Villalobos Cardenas (Villalobos), 51; Cesar David Rincon Godoy (Cesar Rincon), 51; Alejandro Isturiz Chiesa (Isturiz), 33; and Rafael Ernesto Reiter Munoz (Reiter), 39. 

According to admissions made in connection with De Leon’s plea, between 2011 and 2013, he conspired with Villalobos, Cesar Rincon, Isturiz and others, all of whom were then officials of PDVSA and its subsidiaries or former officials of other Venezuelan government agencies or instrumentalities, to solicit PDVSA vendors for bribes and kickbacks in exchange for providing assistance to those vendors in connection with their PDVSA business.  Specifically, De Leon admitted that he solicited and directed bribes from Roberto Enrique Rincon Fernandez (Roberto Rincon), 57, of The Woodlands, Texas, and Abraham Jose Shiera Bastidas (Shiera), 55, of Coral Gables, Florida, to PDVSA officials in order to assist Roberto Rincon’s and Shiera’s companies, including their U.S.-based companies, in receiving payment priority and receiving additional PDVSA contracts.  De Leon further admitted that he then conspired with Roberto Rincon and Shiera to launder and conceal the proceeds of the bribery scheme through a series of financial transactions, including wire transfers to accounts in Switzerland held in the names of individuals or entities other than De Leon and his co-conspirators. 

As part of his plea agreement, De Leon also admitted to soliciting bribes from other owners of energy companies based in the United States and elsewhere, and directing a portion of such bribes to PDVSA officials in order to assist those individuals and their companies in winning business with PDVSA and to obtain payment from PDVSA on outstanding invoices ahead of other PDVSA vendors. 

Roberto Rincon and Shiera previously pleaded guilty in the Southern District of Texas to charges under the FCPA for their respective roles in the bribery scheme.  Cesar Rincon previously pleaded guilty to one count of conspiracy to commit money laundering.  They currently await sentencing.

The charges against Villalobos, Isturiz and Reiter remain pending.  Each of the three remaining defendants is charged with one count of conspiracy to commit money laundering and with one or more counts of money laundering.  Villalobos is also charged with one count of conspiracy to violate the FCPA.  Villalobos and Reiter remain in Spain pending extradition and Isturiz remains at large. 

The charges contained in the indictment are merely accusations, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

De Leon is the latest individual to plead guilty as part of a larger, ongoing investigation by the U.S. government into bribery at PDVSA.  Including De Leon, Cesar Rincon, Roberto Rincon and Shiera, the Justice Department has announced the guilty pleas of a total of 12 individuals in connection with the investigation. 

HSI in Houston is conducting the ongoing investigation with assistance from HSI in Boston and Madrid, as well as from Internal Revenue Service Criminal Investigation.  Trial Attorneys Jeremy R. Sanders and Sarah E. Edwards 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 Rollinson 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 Spanish Guardia Civil have provided substantial assistance.

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

HOUSTON – A 53-year-old resident of The Woodlands has been sentenced following her conviction of wire fraud, announced U.S. Attorney Ryan K. Patrick. Kavita Nehendra Duvvuru pleaded guilty Oct. 11, 2017.

Today, U.S. District Judge Sim Lake handed Duvvuru a 24-month sentence. At the hearing, a representative of victim company Vinmar International Ltd. told the court the company was like a family and that Duvvuru’s crime a shock. In handing down the sentence, Judge Lake noted the crime deserved punishment by a prison sentence. She will also be required to serve a three-year-term of supervised release following completion of her sentence. She was further ordered to make restitution of $2,537,885.66. The court also entered a forfeiture order imposing a money judgment of $2.5 million.

Duvvuru was a former employee of Vinmar International Ltd. At the time of her plea, she admitted that while employed there, she made unauthorized charges and cash advances for personal expenses on credit cards which were only to be used for Vinmar business expenses. Duvvuru further admitted she altered the credit card statement and provided false information to conceal her fraud from the company.

Duvvuru began employment with the Houston petrochemical distribution and marketing company Vinmar in 2004. Vinmar paid the balances on several credit cards issued in the name of Vinmar’s president and another officer of Vinmar on a monthly basis. These credit cards included an American Express Plum card and two MasterCards and were used to charge Vinmar’s business expenses. Duvvuru had credit cards issued in her name on those accounts as well, but was only authorized to charge Vinmar business expenses. 

Beginning in or about 2010, Duvvuru began making unauthorized charges for personal expenses on the American Express Plum credit card. Eventually, these unauthorized personal charges reached between $10,000 and $20,000 per month. She also obtained unauthorized cash advances from the MasterCard credit cards, which she used for personal expenses including payment of her property taxes and college tuition payments for her children.

In late 2016, Duvvuru made $22,359.29 in unauthorized personal charges on the American Express Plum card. She later accessed the online statement, downloaded a copy and used a software program to alter it to conceal her unauthorized personal charges. She then added a falsified charge for the same amount and attributed it to a Vinmar vendor. She also created false entries to account for the charge it to make it appear to be a legitimate Vinmar business expense. She then submitted the falsified entries to Vinmar’s accounting department.  

Duvvuru 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 conducted the investigation. Assistant U.S. Attorney John Braddock is prosecuting the case.

HOUSTON - A 61-year-old Friendswood man has been ordered to federal prison for mail and wire fraud and money laundering, announced U.S. Attorney Ryan K. Patrick. David Grudzinski pleaded guilty April 13, 2018.

Today, U.S. District Judge Sim Lake handed Grudzinski an 18-month term of imprisonement. In handing down the sentence, Judge Lake noted it was a sophisticated fraud but took into consideration Grudzinski’s lack of criminal history. Grudzinski will be required to serve three years of supervised release following completion of the prison term.

Grudzinski owned approximately 450 pay phones in the Houston area. At the time of his plea, Grudzinski admitted to running a scam to unlawfully obtain payments from the owners of toll-free numbers for calls to his pay phones.

Using specialized software, he caused his phones to robotically dial toll-free telephone numbers assigned to various federal and state government agencies as well as other private entities. As a result, Grudzinski fraudulently-obtained $.494 per such call from 2005 through July 10, 2015.

Because of his scheme, Grudzinski collected  over $2.4 million in fraudulently-obtained payments during that timeframe.

Grudzinski 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 General Services Administration - Office of Inspector General, U.S. Postal Inspection Service, FBI and IRS - Criminal Investigation conducted the investigation. Assistant U.S. Attorney Melissa Annis is prosecuting the case.

HOUSTON – A 45-year-old man has received additional prison time for threatening to kill a Texas federal judge, announced U.S. Attorney Ryan K. Patrick. Charles M. Gilmore Jr., a former resident of Missouri, pleaded guilty Feb. 20, 2018.

Today, Chief U.S. District Judge Lee H. Rosenthal handed Gilmore a 120-month sentence. The sentence will begin following completion of a seven-year-term he must serve from Missouri state court and another 120 months in Northern District of Texas federal court. Following those sentences and the new 10-year-term received today, Gilmore will also serve three years of supervised release.

As part of his plea, Gilmore admitted that on or about Jan. 25, 2017, he knowingly mailed a communication threatening to kill a federal judge in the Northern District of Texas. He mailed the letter to the Federal Detention Center in Houston with a return address implicating Gilmore who was incarcerated at the time.

In the letter, Gilmore said he was going to kill the federal judge, promising to “make the streets run red in Texas.” He also included a white powdery substance, but it tested negative for any bioterrorism agents.

During an interview with law enforcement, Gilmore admitted to mailing the letter and reiterated his intent to kill the federal judge. 

He has been and will remain in custody.

The FBI conducted the investigation. Assistant U.S. Attorney Ted Imperato is prosecuting the case.

CORPUS CHRISTI, Texas - A federal jury has convicted a 52-year-old resident of Carrizo Springs for attempting to smuggle 30 aliens through the U.S. Border Patrol Checkpoint located near Falfurrias, announced U.S. Attorney Ryan K. Patrick. The jury deliberated for 20 minutes before convicting David Rodriguez Sr. following a two-day trial of conspiring to and transporting illegal aliens.

The illegal aliens were hidden behind a load of produce in the trailer portion of the 18-wheeler Rodriguez was driving. On Dec. 5, 2017, during a routine immigration inspection, a service canine conducted a sniff and alerted to the exterior of the trailer. U.S. Border Patrol agents unlocked the trailer and located 30 aliens hiding behind pallets of limes. The agents noted that the temperature inside the refrigerated trailer was 54 degrees Celsius.

U.S. District Judge Nelva Gonzales Ramos presided over the trial and set sentencing for Oct. 10, 2018. At that time, Rodriguez Sr. faces a maximum of 10 years in federal prison. Upon completion of any prison term imposed, he also faces a three year term of supervised release.

Rodriguez was permitted to remain on bond pending that hearing.

Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of Border Patrol. Assistant U.S. Attorney Jeffrey S. Miller prosecuted the case.

HOUSTON - Trademark Property Company has collaborated with the U.S. Attorney’s Office to resolve a complaint against the property known as “Rice Village” regarding violations of Title III of the American with Disabilities Act of 1990, announced U.S. Attorney Ryan K. Patrick.

The complaint stated that the Rice Village sidewalk did not leave sufficient passage for individuals in a wheelchair to access the parking garage from certain restaurants and stores. 

According to the 2010 ADA Standards, “At least one accessible route shall be provided within the site from accessible parking spaces and accessible passenger loading zones; public streets and sidewalks; and public transportation stops to the accessible building or facility entrance they serve.”

The United States initiated this investigation after receiving a complaint about the inaccessibility of routes leading from the parking garage to adjacent shops and restaurants at Rice Village. Trademark, who manages the Rice Village property, was prompt and very cooperative in addressing the issues presented to it in a letter of factual findings and relevant statutory and regulatory requirements. Trademark immediately started remedying the stated accessibility issues and had completed their barrier removal within a month’s time.

Assistant U.S. Attorney Elizabeth Karpati and Paralegal Specialist Ray Babauta handled the matter.

HOUSTON - A previously convicted felon has been ordered to federal prison for unlawfully possessing three explosive devices and firearms, announced U.S. Attorney Ryan Patrick along with Special Agent in Charge Fred Milanowski of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Carl Eugene Fleming, 55, pleaded guilty March 16, 2018.
 
Today, U.S. District Judge Malinda Harmon sentenced him to 71 months imprisonment to be immediately followed by three years of supervised release. In arriving at the sentence, the Judge considered the need for punishment, deterrence and respect for the law. Judge Harmon further noted Fleming’s long history of possessing firearms while being a prohibited person.
 
“As the agency charged with investigating illegally obtained explosives, ATF works closely with the U.S. Attorney’s Office to prosecute offenders who violate these laws,” said Milanowski.
 
The investigation began after law enforcement believed Fleming had improvised explosive devices in the residence he was renting. 
 
The ATF conducted a search at the location, at which time they discovered two explosive devices - one constructed with a grey metal pipe and a fuse, while the other was a 20mm ammunition can with explosive powder and shrapnel and a fuse primed for detonation. Also found were several firearms and ammunition. 
 
He was taken into custody, at which time he also had in his possession a loaded .45 caliber pistol and three magazines of ammunition.
 
A third explosive device was later located hidden in Fleming’s room. This improvised explosive device consisted of PVC pipe with explosive powder, shrapnel and a fuse attached to an arrow. 
 
As a previously convicted felon, Fleming is prohibited by federal law of possessing any firearm, ammunition or destructive devices.
 
He had been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
 
ATF conducted the investigation. Assistant U.S. Attorney Steven Schammel is prosecuting the case.
 

HOUSTON – A 58-year-old an illegal alien from Mexico has been sentenced following his conviction of harboring illegal aliens, using a firearm during a crime of violence, illegal re-entry and being an alien in possession of a firearm, announced U.S. Attorney Ryan K. Patrick. J. Matias Picazo-Lucas pleaded guilty March 7, 2018.

Today, U.S. District Judge Keith Ellison handed Picazo-Lucas a total 96-month sentence. Not a U.S. citizen, he is expected to face deportation proceedings following the sentence

On Aug. 3, 2017, an individual contacted Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) to report that a person had been smuggled into the United States and was being held against his will in Houston. That person advised that the unknown smugglers were demanding money in return for the release of the alien.

An undercover agent called the smuggler and arranged to meet him at a grocery store on Bellaire Boulevard to conduct a buyout of the relative. Law enforcement was on the scene when Picazo-Lucas arrived with two aliens who were being held. The agent and Picazo-Lucas discussed the payment, after which time authorities took Picazo-Lucas into custody. At the time of his arrest, he was found to be carrying a loaded .38 caliber pistol.

The two aliens were here illegally from Guatemala and indicated Picazo-Lucas and another individual, subsequently identified as Omar Picazo-Torres, had transported them to Houston in a tractor-trailer. Picazo-Lucas and Picazo-Torres held the hostages at gunpoint in order to intimidate them and prevent their escape.

The conspirators made phone calls to the person who had reported the kidnapping and other friends and family members of the hostages demanding payment for the release of the hostages.

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

Mexican National Omar Picazo-Lucas, 20, remains a fugitive and a warrant has been issued for his arrest. Anyone with information about his whereabouts is asked to contact HSI at 866-DHS-2-ICE.

HSI, Brazoria County Sheriff’s Office and the Houston Police Department conducted the investigation. Assistant U.S. Attorneys Douglas Davis and Kevin Lear are prosecuting the case.

McALLEN, Texas – A 46-year-old McAllen resident has been taken into custody for allegedly aiming a laser pointer at an aircraft, announced U.S. Attorney Ryan K. Patrick.

Law enforcement took Ruth Ann Hopp into custody Friday. She made her initial appearance this morning, at which time she was ordered temporarily into custody pending a detention hearing set for today at 4:00 p.m.

The criminal complaint alleges Hopp is responsible for lasing numerous aircrafts that had attempted to land at McAllen International Airport.

The investigation began after numerous pilots had complained about similar incidents involving lasers.  

Lasers have a dangerous effect on pilots when the beams of light strike an aircraft. The light can temporarily blind them. A laser, when aimed at an aircraft, can create a visual distraction or cause discomfort or even damage to a pilot’s eyes.

The criminal complaint alleges the instances in which Hopp is charged occurred during the landing portion of different flights, when the pilots need to be most alert. This represents a danger to not only the pilots, but the passengers of the planes as well as the people on the ground.

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

The FBI and Customs and Border Protection Air & Marine Branch conducted the investigation. Assistant U.S. Attorney K. Alejandra Andrade is prosecuting the case. 

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

McALLEN, Texas – A 28-year old resident of McAllen has been ordered to federal prison following his conviction of one count of receipt of child pornography, announced U.S. Attorney Ryan K. Patrick. Jesus Salvador Lara-Perez pleaded guilty Dec. 5, 2016.

Today, U.S. District Judge Ricardo Hinojosa handed Lara-Perez a 66-month-sentence. Lara-Perez was further ordered to $750 in restitution to a known victim and will serve five years of supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. He will also be ordered to register as a sex offender.

Lara-Perez came to the attention of law enforcement following an investigation which began on Nov. 8, 2015, into persons using the internet to traffic in child pornography. A special agent with Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) was able to locate and identify a computer as offering to participate in the receipt of child pornography videos through the peer-to-peer network on the Internet. Through the investigation, it was determined the computer was located at a residence in McAllen. 

On June 28, 2016, authorities executed a federal search warrant at that residence, during which time they seized a laptop computer. A forensic examination on the computer revealed 198 videos and 109 images of child pornography involving clearly young children engaged in sexually explicit conduct. These videos included children under the age of 12 involved in sadistic conduct, bondage and other depictions of violence. Some of the videos are of known victims as identified through the National Center for Missing and Exploited Children.

Lara-Perez admitted he downloaded and viewed child pornography from the Internet, thereby receiving the child pornography found on his laptop computer. He admitted he had been downloading child pornography for approximately three years.  

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

HSI conducted the investigation.

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

CORPUS CHRISTI, Texas - A previously convicted felon has been ordered to federal prison for illegally possessing a firearm, announced U.S. Attorney Ryan K. Patrick. Cruz Edwardo Gonzalez, 30, of Corpus Christi, pleaded guilty Feb. 1, 2018, to a single count of being a felon in possession of a firearm.

Today, U.S. District Judge Nelva Gonzales Ramos sentenced Gonzalez to 84 months imprisonment to be immediately followed by three years of supervised release.

In March 2017, authorities were attempting to serve an arrest warrant on Gonzalez for delivery of a controlled substance. The agents located and arrested him at his residence in Corpus Christi, at which time Gonzalez gave consent to search the location. Agents and officers soon discovered a loaded 9mm semi-automatic handgun with an obliterated serial number in his bedroom. Gonzalez, who had a previous felony conviction, is prohibited from possessing firearms and ammunition per federal law.

Gonzalez was arrested at the time of the offense and transferred into federal custody in December 2017 as part of a coordinated federal, state and local law enforcement effort known as Operation City Shield. The operation was designed to identify violent offenders, stop gun violence and protect the community.

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

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

Assistant U.S. Attorney Lance Watt is prosecuting the case.

BROWNSVILLE, Texas – A 47-year old Mexican citizen has been ordered to prison for more than seven years following his conviction of illegal re-entry, announced U.S. Attorney Ryan K. Patrick. Jose Inez Martinez-Ramirez pleaded guilty March 14, 2018.

Today, U.S. District Judge Andrew Hanen ordered Martinez-Ramirez to serve 78 months for the conviction and further ordered his supervised release for a previous illegal re-entry conviction be revoked, resulting in a total 90-month-federal prison sentence. He again will be expected to face deportation proceedings following his release.

On Jan. 1, 2017, Martinez-Ramirez was in the Brownsville city jail on charges of sexual assault and assault on a family member impeding breath/circulation. At that time, he was found to be an alien and citizen of Mexico who had entered the United States illegally.

Further evidence revealed that he had been previously removed from the United States in 2005, 2008 and 2011. 

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 – Homeland Security Investigations conducted the investigation. Assistant U. S. Attorney Oscar Ponce is prosecuting the case.

CORPUS CHRISTI, Texas  - A 35-year-old Corpus Christi woman has pleaded guilty to one count of possessing a controlled substance with the intent to distribute and one count of receiving a misbranded drug in interstate commerce, announced U.S. Attorney Ryan K. Patrick.

Vanesa Gonzales was one of the owners of X2Zero, a store selling dietary supplements online and through stores located in Corpus Christi. 

In 1997, the Food and Drug Administration (FDA) approved a prescription drug containing sibutramine under the trade name “Meridia” for the management of obesity. In October 2010, the FDA requested Meridia’s marketer to withdraw the drug from the United States market due to the health risks associated with sibutramine, including an increased risk of heart attack, stroke and death. On Dec. 21, 2010, at the manufacturer’s request, FDA withdrew its approval of Meridia. Since its removal, no drug containing sibutramine has been approved for human use in the United States.

The FDA found a number of the products X2Zero sold as “herbal weight loss supplements” to contain misbranded or unapproved foreign drugs.

At today’s hearing before Senior U.S. District Judge John D. Rainey, Gonzales admitted she knowingly possessed and sold diet drugs containing sibutramine. She acknowledged she imported the drugs from China and sold them through both the X2Zero store in Corpus Christi and on the internet in violation of the federal Food, Drug and Cosmetic Act.

Sentencing has been set for Sep. 17, 2018, at 5:00 p.m. At that time, Gonzales faces up to six years in federal prison and fines of up to $350,000. She has been and will remain in custody pending that hearing.  

The FDA-Office of Criminal Investigations conducted the investigation. Assistant U.S. Attorney Robert D. Thorpe Jr.is prosecuting the case.

HOUSTON – Three Romanian men have been ordered to prison for their roles in the placement of card skimmers on ATMs and stealing money from bank accounts, announced U.S. Attorney Ryan K. Patrick. Cristian Viorel Ciobanu, 31, Bogdan Mirel Constantin, 34, both of Romania, pleaded guilty Oct. 27, 2017. A third defendant – Daniel Marius Muraretu, 40, also of Romania – entered his plea Jan. 26, 2018.

Ciobanu pleaded guilty to conspiracy to commit access device fraud and aggravated identity theft. Today, U.S. District Judge Ewing Werlein Jr. ordered him to serve 42 months for the fraud in addition to another two years for the identity theft which must be served consecutively for a total of 66 months in federal prison.

Constantin pleaded guilty to theft aggravated identity theft and received a mandatory two years in prison, while Muraretu received 37 months for his conviction of the conspiracy charge. They were all also ordered to pay restitution of $390,487.64

At the hearing, Ciobanu told the court he had made a mistake. In handing down Ciobanu’s sentence, Judge Werlein noted that he had committed one crime after another after another in Pennsylvania, Virginia, Texas and then California. “You did not just make a mistake. This was not just a matter of you bumping into someone,” Werlein said. “You claim you are a good man – but this is not the mark of a good man.”

Ciobanu, Muraretu and Constantin were part of a group that traveled to the United States and then to Pennsylvania, Virginia and Texas to steal money from victims’ bank accounts. Further, after fleeing arrest in 2016, Ciobanu was arrested in 2017, apparently committing the same crimes in California. 

In each state, the co-conspirators used card skimmers to steal ATM card numbers as customers inserted their cards into the machines. They also used hidden cameras to record customers as they entered their PINs.  Armed with this stolen data, they then made their own fake ATM cards. They then used those fake cards and stolen PINs to withdraw at least $390,495.84 from customer accounts. Constantin joined the group in Houston. 

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

The FBI conducted the investigation. Assistant U.S. Attorney Michael Chu is prosecuting the case.

HOUSTON – A federal jury has convicted a 47-year-old Humble woman of making false statements and theft of public money, announced U.S. Attorney Ryan Patrick. They deliberated for approximately an hour following less than three days of trial convicting Lisa Yvette Coffman.

Coffman was a 29-year federal postal employee. She sustained a job-related injury in 2011, but submitted more than $46,000 in false travel reimbursement claims related to that injury.  

The jury heard testimony from a Department of Labor employee who explained worker’s compensation regulations. The government also presented testimony from employees from six different medical providers who explained the actual number of visits Coffman attended, a number drastically lower than was she claimed in her travel reimbursement submissions.

A special agent with U.S. Postal Service – Office of Inspector General (USPS-OIG) told the jury how they discovered the fraud which totaled $46,000.

U.S. District Judge Melinda Harmon presided over the trial and set sentencing for Sept. 14, 2018. At that time, she faces up to five years in prison for the false statements and another 10 years for theft of public money. Both convictions also carry a possible fine of $250,000.

USPS-OIG conducted the investigation. Assistant U.S. Attorneys Jennie Basile and Charlie Escher are prosecuting the case.

Weldon Marshall, 43, of Sherman, Texas, was sentenced today to 41 months in prison, to be followed by one year of supervised release, for unlawfully retaining national defense information. Marshall pleaded guilty on March 5. Assistant Attorney General for National Security John C. Demers and U.S. Attorney Ryan K. Patrick of the Southern District of Texas made the announcement, after sentencing by U.S. District Judge George Hanks. In handing down the sentence, the court noted how Marshall violated an important trust the military had placed in him. From the early 2000s, Marshall unlawfully retained classified items he obtained while serving in the U.S. Navy and while working for a military contractor. Marshall served in the U.S. Navy from approximately January 1999 to January 2004, during which time he had access to highly sensitive classified material, including documents describing U.S. nuclear command, control and communications. Those classified documents, including other highly sensitive documents classified at the Secret level, were downloaded onto a compact disc labeled “My Secret TACAMO Stuff.” He later unlawfully stored the compact disc in a house he owned in Liverpool, Texas. After he left the Navy, until his arrest in January 2017, Marshall worked for various companies that had contracts with the U.S. Department of Defense. While employed with these companies, Marshall provided information technology services on military bases in Afghanistan where he also had access to classified material. During his employment overseas, and particularly while he was located in Afghanistan, Marshall shipped hard drives to his Liverpool home. The hard drives contained documents and writings classified at the Secret level about flight and ground operations in Afghanistan. Marshall has held a Top Secret security clearance since approximately 2003 and a Secret security clearance since approximately 2002. Previously released on bond, Marshall was taken into custody following the sentencing today where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. The Army’s 902d Military Intelligence Group and the FBI conducted the investigation. Assistant U.S. Attorney (AUSA) Alamdar Hamdani and former AUSA Andrew Leuchtmann of the Southern District of Texas prosecuted the case, along with Trial Attorney Matthew Walczewski of the National Security Division’s Counterintelligence and Export Control Section.

HOUSTON – A 43-year-old man residing in Sherman has been ordered to federal prison following his conviction of unlawfully retaining national defense information, announced U.S. Attorney Ryan K. Patrick and Assistant Attorney General for National Security John C. Demers.

Weldon Marshall pleaded guilty March 5, 2018.

Today, U.S. District Judge George Hanks handed Marshall a 41-month sentence to be immediately followed by a year of supervised release. In handing down the sentence, the court noted how Marshall violated an important trust the military had placed in him.  

From the early 2000s, Marshall unlawfully retained classified items while he served in the U.S. Navy and while working for a military contractor.

Marshall served in the U.S. Navy from approximately January 1999 to January 2004, during which time he had access to highly sensitive classified material, including documents describing U.S. nuclear command, control and communications. Those classified documents, including other highly sensitive documents classified at the secret level, were downloaded onto a compact disc labeled “My Secret TACAMO Stuff.” He later unlawfully stored the compact disc in a house he owned in Liverpool.

After he left the Navy, until his arrest in January 2017, Marshall worked for various companies that had contracts with the U.S. Department of Defense. While employed with these companies, Marshall provided information technology services on military bases in Afghanistan where he also had access to classified material. During his employment overseas, and particularly while he was located in Afghanistan, Marshall shipped hard drives to his Liverpool, Texas, home. The hard drives contained documents and writings classified at the secret level about flight and ground operations in Afghanistan. 

Marshall has held a top secret security clearance since approximately 2003 and a secret security clearance since approximately 2002. 

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

The Army’s 902d Military Intelligence Group and the FBI conducted the investigation. Assistant U.S. Attorneys (AUSA) Alamdar Hamdani and former AUSA Andrew Leuchtmann prosecuted the case along with Trial Attorney Matthew Walczewski of the National Security Division’s Counterintelligence and Export Control Section.

HOUSTON – Two Houston women have been taken into custody on charges they committed fraud against the Veterans Administration (VA) by generating purchase orders for fictitious goods and services, announced U.S. Attorney Ryan K. Patrick.

Authorities arrested Eduora McDaniel aka Eudora McDaniel, 75, today, and she is expected to make her initial appearance before U.S. Magistrate Judge Nancy Johnson at 1:00 p.m. Co-defendant Angela Hunter aka Angelia Hunter, 53, is expected to appear in federal court Thursday at 2:00 p.m.

The 11-count indictment, returned June 7, 2018, alleges McDaniel was a prosthetics representative at the VA, while Hunter co-owned Divine Iron Works - a company that was an approved VA prosthetics vendor. They allegedly entered into an agreement to split VA payments for goods and services Hunter’s company never provided.

While Divine Iron Works was an approved vendor to provide prosthetic goods and services for the VA, the company was effectively defunct from January 2011 to December 2014 and provided no actual goods or services, according to the charges. The indictment alleges that as a VA prosthetics representative, McDaniel had the authority to obtain prosthetic goods and services if a Veterans Administration physician found it medically necessary, which she was authorized to pay using a government-issued VISA credit card. McDaniel allegedly created bogus purchase orders for Hunter’s company, which Hunter used to obtain payment on McDaniel’s government credit cards. McDaniel and Hunter split the payments according to the charges.  

Each is charged with conspiracy to commit wire fraud and face up to five years in prison, upon conviction. McDaniel is also charged with 10 counts of wire fraud and one count of theft of government property. Each count of wire fraud carries a possible sentence of 20 years in prison, while theft of government property could result in a maximum of 10 years imprisonment. All the charges also carry a possible fine of $250,000.

VA - Office of Inspector General conducted the investigation. Assistant U.S. Attorney Belinda Beek is prosecuting the case.

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

HOUSTON – A 24-year-old man from Houston has been ordered to federal prison for receipt and possession of child pornography, announced U.S. Attorney Ryan Patrick. Lucio Banda pleaded guilty March 21, 2018.

Today, U.S. District Judge Kenneth Hoyt sentenced Banda to 120 months in prison. At the hearing, Banda tried to mitigate his responsibility by claiming he did not distribute child pornography on the internet through his use of a peer-to-peer program. The court heard arguments and reviewed evidence regarding how the file-sharing program worked with respect to the sharing and distribution of files Banda made available. In handing down the sentence, the court noted Banda was responsible for the distribution of child pornography. He was further ordered to pay $18,136.40 in restitution to the known victims included in his collection and will serve 10 years on supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. He will also be ordered to register as a sex offender.

Banda first came to the attention of law enforcement after they found multiple images of child pornography associated with his online account.

Authorities conducted a search at his residence, at which time they seized Samsung Galaxy Note 3 cellular phone and a San Disk Micro SD Ultra flash drive and a San Disk Ultra Plush flash memory card. Forensic analysis ultimately uncovered 2,191 images and 251 videos contained child pornography which included a substantial number of files with minor females under the age of five. Some of the images are known victims identified through the National Center for Missing and Exploited Children.   

He admitted the child pornography was his as well as the online account he used to obtain child pornography and acknowledged using peer-to-peer software to search for, download and obtain child pornography. He also admitted to viewing child pornography for at least five years and that he had been doing so for at least two to three years.   

Banda 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 conducted the investigation.

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

HOUSTON – A 31-year-old former law enforcement official has been ordered to federal prison for more than 27 years following his convictions of production and possession of child pornography, announced U.S. Attorney Ryan K. Patrick. Andrew Craig Sustaita, of Spring, pleaded guilty as charged March 15, 2018. He was previously a Harris County deputy sheriff at the time of the offense, but is no longer employed there.

Today, U.S. District Judge Sim Lake sentenced Sustaita to 240 and 87 months for the production and possession convictions, respectively. The sentences will run consecutively for a total 327-month term of imprisonment. Additional information was also presented today, including a victim impact statement presented by victim’s mother in the production count. She detailed how Sustaita’s acts have victimized her daughter/family/friends and that what has happened to them encompasses the true meaning of the term evil. In handing down the sentence, the court noted that this was one of the most disturbing cases over which he had presided. Sustaita 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. He will also be ordered to register as a sex offender.

There were 70 known series of child pornography identified on Sustaita’s devices. The court granted the government 90 days to determine if any of those victims are seeking restitution.

At the time of his plea, Sustaita admitted he posted child erotica images to a known child pornography website and had commented on other similar images on that same site. The investigation led to Sustaita whose online presence included a pay-to-play bestiality website. Further information presented to the court included discussions of the amount and types of images authorities have discovered on two devices attributable to Sustaita.  Other images contain Sustaita’s genitalia placed on or near the identified young female victim’s head while she appears to be sleeping and others that include Sustaita attempting to expose that child’s genitalia.

Further investigation led to the discovery of the identified victim’s images on a computer in Milwaukee, Wisconsin. It was learned that Sustaita had distributed the images via the internet.

A U.S. magistrate judge had previously ordered Sustaita into custody after finding him to be a danger to the community and a risk of flight. He has remained in custody since that time and will continue to do so pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

The Harris County Sheriff’s Office and Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation.  

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

HOUSTON – A 45-year-old Houston resident has been charged with conspiring to violate the federal anti-kickback statute and receiving at least $320,000 in illegal kickback payments from a local Houston pharmacy, announced U.S. Attorney Ryan K. Patrick.

Dontrey Lamon Eason turned himself in to law enforcement agents yesterday. He is expected to make his initial appearance before U.S. Magistrate Judge Nancy K. Johnson at 2:00 p.m. today.  

The criminal information, filed today, alleges Eason and another individual entered into an agreement with Piney Point Pharmacy to receive $5,000 along with 40% of the payments the pharmacy received from the Federal Employees Compensation Act health care benefits program (FECA). Eason allegedly solicited a physician in Corpus Christi to send prescriptions to the pharmacy. Eason also had access to patient and pharmacy records to check the status of referrals, according to the complaint.

Eason allegedly received $320,608 from Piney Point Pharmacy who billed the FECA program $2,082,996 for referred prescriptions.

Conspiracy to pay kickbacks carries a possible sentence of five years as well as a possible $250,000 maximum fine.

Piney Point Pharmacy was charged in January 2018 with numerous violations of federal law, including conspiracy, health care fraud, wire fraud and money laundering. Trial is set for Oct. 15, 2018.

This case was the result of a joint investigation with the U.S. Postal Service – Office of Inspector General (OIG), Department of Labor - OIG, Department of Veterans Affairs – OIG and Department of Homeland Security – OIG. Assistant U.S. Attorney Julie Redlinger is prosecuting the case.

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